/raid1/www/Hosts/bankrupt/TCR_Public/241216.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, December 16, 2024, Vol. 28, No. 350
Headlines
48FORTY SOLUTIONS: Silver Point Marks $85.6MM Loan at 17% Off
ABRAXAS LLC: Kicks Off Subchapter V Bankruptcy in Florida
ADELAIDA CELLARS: Case Summary & 20 Largest Unsecured Creditors
AFINITI LTD: Represented by Latham & Watkins in Recapitalization
AFRIN TRANSPORT: Gets Final OK to Use Cash Collateral
AGNC INVESTMENT: Egan-Jones Retains BB- Senior Unsecured Ratings
AKRK BETHANY: Eric Huebscher Named Subchapter V Trustee
ALASKA AIR: Egan-Jones Retains BB- Senior Unsecured Ratings
ALMOND COW: Gets Final OK to Use Cash Collateral
ALPINEBAY INC: Sec. 341(a) Meeting of Creditors on January 7
ALUMAX INC: Seeks Bankruptcy Protection in Puerto Rico
ALVARIA HOLDCO: 92% Markdown for DoubleLine ISF $2.5MM Loan
ALVARIA HOLDCO: DoubleLine ISF Marks $1.1MM Loan at 55% Off
ARGENTARIA REAL: Texas Cold Storage Facility Up for Sale
ASTRA ACQUISITION: DoubleLine ISF Marks $1.2MM Loan at 79% Off
ASTRA ACQUISITION: DoubleLine ISF Marks $761,213 Loan at 17% Off
ATI INC: Egan-Jones Retains B+ Senior Unsecured Ratings
ATLANTIC INT'L: Lenders Set Securities Up for Sale on Dec. 23
BABY K'TAN: Gets Interim OK to Use Cash Collateral
BAKELITE US: Moody's Affirms 'B1' CFR & Alters Outlook to Negative
BARTLEY INVESTMENTS: Court OK's Sale of Tampa Property for $375K
BAUSCH + LOMB: Exploring Potential Sale
BELLTOWN FARMS: Gets Interim OK to Use Cash Collateral
BEYOND AIR: Israeli Ministry OKs Use of LV UNO in Clinical Trial
BGC PARTNERS: Egan-Jones Withdraws BB+ Senior Unsecured Ratings
BLACK DIAMOND: Loses Bid to Enforce Automatic Stay in Wyoming Case
BLUESUMMIT MEDICAL: Lender Seeks to Prohibit Cash Collateral Access
BMA LLC: Unsecureds Will Get 3.9% of Claims over 5 Years
BOYD GAMING: Egan-Jones Retains BB- Senior Unsecured Ratings
BUFFALO DIOCESE: Judge Considers 3rd Mediator for Ch. 11 Case
BULLETPROOF DOG: Gets Interim OK to Use Cash Collateral
BUTLER, PA: S&P Affirms 'BB' Rating on 2015B GO Bonds
C-BOND SYSTEMS Reports $647,213 Net Loss in Fiscal Q3
CAN BROTHERS: Gets Interim OK to Use $498,396 in Cash Collateral
CANDE HOFFMAN: Gets Final OK to Use Cash Collateral
CAPSTONE COMPANIES: Posts $95,537 Net Loss in Fiscal Q3
CAREPOINT HEALTH: U.S. Trustee Appoints David Crapo as PCO
CARETRUST REIT: S&P Upgrades ICR to 'BB+', Outlook Stable
CAREVIEW COMMUNICATIONS: Reports $1.5 Million Net Loss in Fiscal Q3
CARVANA CO: CAS Investment, Clifford Sosin Hold 5% Class A Shares
CARVANA CO: Jane Street Entities Lower Stake to 2.6%
CARVANA CO: Spruce House Investment Management Holds 3.9% Stake
CARVANA CO: T. Rowe Price Associates Holds 11.1% Equity Stake
CATHETER PRECISION: Armistice, Steven Boyd Hold 9.99% Stake
CATHETER PRECISION: Reports $4.1 Million Net Loss in Fiscal Q3
CEDAR TRUCKING: Seeks Chapter 11 Bankruptcy in West Virginia
CHAMPIONS ONCOLOGY: West Elk Partners Holds 6.49% Equity Stake
CHARTER COMMUNICATIONS: Egan-Jones Retains BB Sr. Unsec. Ratings
CHERRY & CANDLEWOOD: Files Chapter 11 Bankruptcy in California
CHIC COUTURE: Gets Final Approval to Use Cash Collateral
CINEMARK HOLDINGS: Egan-Jones Hikes Sr. Unsecured Ratings to CCC+
CNX RESOURCES: Egan-Jones Retains BB- Senior Unsecured Ratings
COASTAL GROWERS: Gets OK to Use Cash Collateral Until Jan. 7
COMMSCOPE HOLDING: FPR Partners Holds 6.2% Equity Stake
CONTAINER STORE: Preps Up Chapter 11 Bankruptcy Filing
CORETEC GROUP: CEO Seon Kee Kim Resigns; Executive Team Reshuffled
CORETEC GROUP: Sells $7.3-Mil. Series D Preferred Shares
COSMOS HEALTH: Armistice Capital Holds 9.99% Equity Stake
COSMOS HEALTH: Reports $2.18 Million Net Loss in Fiscal Q3
COUSIN ENTERPRISES: Unsecureds to be Paid in Full in Plan
CRACKED EGGERY: Files Chapter 11, Jan. 6 Creditors' Meeting
CRICKET AUTOMOTIVE: Gets Interim OK to Use Cash Collateral
CRUCIBLE INDUSTRIES: Seeks to Sell Crucible Particle Metallurgy Biz
CRYSTAL BASIN: Case Summary & 20 Largest Unsecured Creditors
CUCINA ANTICA: Case Summary & 20 Largest Unsecured Creditors
CURIS INC: Reports $10.1 Million Net Loss in Fiscal Q3
CV SCIENCES: Reports $456,000 Net Loss in Fiscal Q3
CYTOSORBENTS CORP: Granahan Investment Holds 3.85% Equity Stake
D DUNCAN FLORISTRY: Case Summary & 13 Unsecured Creditors
D.H. COOKSEY: Sec. 341(a) Meeting of Creditors on Jan. 7
DALE HOLLOW: Gets Interim OK to Use Cash Collateral
DANT A. SANDRAS: Fine-Tunes Plan Documents
DARE BIOSCIENCE: Reports $4.7 Million Net Loss in Fiscal Q3
DE HOOP: Samuel Dawidowicz Named Subchapter V Trustee
DIAMOND HR BENEFITS: Seeks Bankruptcy Protection in E.D.N.Y.
DICK’S AUTOMOTIVE: Gets OK to Use Cash Collateral Until Jan. 9
DIEBOLD NIXDORF: Moody's Ups CFR to 'B2' & Alters Outlook to Stable
DISH DBS: Reports $339.8 Million Net Income in Fiscal Q3
DOCTURS INC: Voluntary Chapter 11 Case Summary
DURECT CORP: Registers 2-Mil. Additional Shares Under Stock Plan
DURECT CORP: Reports $4.3 Million Net Loss in Fiscal Q3
EARTH SCIENCE: Reports $798,368 Net Income in Fiscal Q2
EBIX INC: Egan-Jones Withdraws BB- Senior Unsecured Ratings
ECHOSTAR CORP: Egan-Jones Lowers Senior Unsecured Ratings to B
EDGIO INC: Akamai Completes Select Asset Acquisition in Chapter 11
EEGEE'S LLC: Sec. 341(a) Meeting of Creditors on January 7
EKSO BIONICS: Armistice Capital Holds 9.99% Equity Stake
ENSONO INTERMEDIATE: S&P Rates New First-Lien Term Loan 'B-'
ENVIROSCENT INC: Gets OK to Use Cash Collateral Until Jan. 7
ERNIE'S AUTO: Unsecured Creditors to Split $760K over 5 Years
EXTREME RESIDENTIAL: Files Subchapter V Bankruptcy in Georgia
EYENOVIA INC: Raises $1.95-Mil. in Shares Sale, to Pay Off Lender
FINTHRIVE SOFTWARE: DoubleLine ISF Marks $2.2MM Loan at 56% Off
FLEXJET INC: Moody's Assigns 'B1' CFR, Outlook Stable
FMC TECHNOLOGIES: Egan-Jones Retains BB Senior Unsecured Ratings
FORMER CHARTER: Egan-Jones Retains BB Senior Unsecured Ratings
FTX TRADING: El-Razek Case Won't Proceed to Mediation
FTX TRADING: Kihyuk Nam Case Won't Proceed to Mediation
FTX TRADING: Layerzero, et al. Case Won't Proceed to Mediation
FTX TRADING: Melamed Case Won't Proceed to Mediation
G FAB INC: Case Summary & 16 Unsecured Creditors
GARCIA PROPERTY: Files Emergency Bid to Use Cash Collateral
GARY R. CLASBY: Obtains Favorable Ruling in Fuller Case
GATEWAY CASINO: Silver Point Marks $4. 9MM Loan at 25% Off
GG GLOBAL: Unsecured Creditors to Get Share of Income for 3 Years
GREELEY FLATS: Gets OK to Use Cash Collateral Until April 1
GRITSTONE BIO: Arranges Asset Sale Through Bankruptcy Court
GROUP RESOURCES: U.S. Trustee Seeks Chapter 11 Trustee Appointment
GUARDIAN ELDER: Seeks to Extend Plan Exclusivity to March 26, 2025
H-FOOD HOLDINGS: Benjamin Mathes Appointed as New Committee Member
HARADA FAMILY: Christy Brandon Named Subchapter V Trustee
HARE TAYLOR: Sec. 341(a) Meeting of Creditors on January 6
HAWAIIAN HOLDINGS: Egan-Jones Retains CCC- Sr. Unsecured Ratings
HERBALIFE LTD: Egan-Jones Retains BB- Senior Unsecured Ratings
HILLCREST CENTER: Case Summary & 10 Unsecured Creditors
HOUSTON TRUCK: Gets Interim OK to Use Lenders' Cash Collateral
HUMPER EQUIPMENT: Case Summary & 20 Largest Unsecured Creditors
HYPERION UTS: Wins Final OK to Use Cash Collateral
IGLESIA DE DIOS: Updates College Park Lodge Secured Claim Pay
IMAX CORP: Egan-Jones Retains BB- Senior Unsecured Ratings
INCORA: U.S. Trustee Objects to 3rd-Party Releases in Plan
INNOVERE MEDICAL: Gets CCAA Initial Stay Order; E&Y as Monitor
INOTIV INC: Silver Point Marks $16.03MM Loan at 15% Off
IONIS PHARMACEUTICALS: Egan-Jones Retains B Sr. Unsecured Ratings
IYS VENTURE: Amends Itria Ventures & Huntington Secured Claims Pay
J&K SAI HOSPITALITY: Files Chapter 11 Bankruptcy in Florida
JEFFERSON CAPITAL: Moody's Affirms 'Ba2' CFR, Outlook Stable
KIRBY CORP: Egan-Jones Hikes Senior Unsecured Ratings to BB+
KRAIG BOCRAFT: Founder & CEO Owns 12.30% Equity Stake
LASERSHIP INC: Moody's Ups CFR to 'Caa2' & Alters Outlook to Stable
LAVIE CARE: NO Decline in Resident Care, 2nd PCO Report Says
LAW OFFICE OF JESSICA: Norman Rouse Named Subchapter V Trustee
LCS UNLIMITED: Files Emergency Bid to Use Cash Collateral
LERETA LLC: DoubleLine ISF Marks $1.1MM Loan at 18% Off
LEWISBERRY PARTNERS: Gets OK to Use Cash Collateral Until Jan. 3
LI-CYCLE HOLDINGS: Glencore, Affiliates Hold 69% of Equity
LINX OF LAKE: Case Summary & 20 Largest Unsecured Creditors
LSR CANYON: U.S. Trustee Unable to Appoint Committee
LSR TANGLEWOOD: U.S. Trustee Unable to Appoint Committee
LUCENA DAIRY: Court Extends Use of Cash Collateral to Jan. 8
LUXURY FLUSH: Seeks to Sell Greasezilla System, Vehicles
MAD ENGINE: Silver Point Marks $11.1MM Loan at 20% Off
MARTIN SELIG: Warns Lenders of Rising Office Debt Default
MASTEC INC: Egan-Jones Retains BB Senior Unsecured Ratings
MAYVILLE HOLDINGS: Unsecureds to Split $50K over 3 Years
MEGA ENTERTAINMENT: Gets Interim OK to Use Cash Collateral
MERCER INTERNATIONAL: Egan-Jones Hikes Sr. Unsecured Ratings to B+
MGM RESORTS: Egan-Jones Retains B Senior Unsecured Ratings
MIDSTATE BASEMENT: Wins Interim Cash Collateral Access
MISS AMERICA: Wants to End Bankruptcy After Debt Payment
MLN US HOLDO: DoubleLine ISF Virtually Writes off $2. 9MM Loan
MP REORGANIZATION: Updates Competing Secured Claims; Amends Plan
MR. BIG DREAMS : Liberty Suit Transferred to N.Y. District Court
NAZARETH LIMO: Charles Persing Named Subchapter V Trustee
NCR VOJIX: Egan-Jones Retains B- Senior Unsecured Ratings
NEEDLE HOLDINGS: DoubleLine ISF Marks $274,199 Loan at 15% Off
NEP GROUP: DoubleLine ISF Marks $905,000 Loan at 18% Off
NEW LOAN CO: Secured Party Sets Foreclosure Sale for Dec. 19, 2024
NJ MOBILE: No Patient Complaints, 1st PCO Report Says
NOBLE'S SONG: To Sell Solomons Property for $1.5-Mil.
NOEL RUIZ NURSERY: To Sell 26030 Property for $975,000
NORRIS TRAINING: Court OKs 4-Week Extension to Use Cash Collateral
NORTHEAST GROCERY: S&P Affirms 'B+' ICR, Outlook Negative
NOVALENT LTD: Creditors to Get Proceeds From Liquidation
NOYA HOLDINGS: Cannabis Biz Seeks CCAA, Pursues Sale
NP HAMPTON: Voluntary Chapter 11 Case Summary
NW CUSTOM AIRCRAFT: Case Summary & Six Unsecured Creditors
OAKLAND DIOCESE: Bankruptcy Plan Infeasible, Abuse Victims Contend
OREGON CLEAN: Moody's Hikes Rating on Secured Bank Loans to 'Ba3'
ORGANON & CO: Moody's Rates New Secured First Lien Term Loan 'Ba1'
ORIGINAL HAROLD'S: Unsecured Creditors to Get Nothing in Plan
OWENS & MINOR: Egan-Jones Retains BB- Senior Unsecured Ratings
PEDIATRIC ASSOCIATES: Moody's Affirms 'B2' CFR, Outlook Stable
PENINSULA HEIGHTS: Mark Sharf Named Subchapter V Trustee
PERFECT VIEW: Wins Interim Cash Collateral Access
PERFORCE SOFTWARE: S&P Rates New $1.082BB First-Lien Term Loan 'B-'
PETROQUEST ENERGY: Gets Court Okay Jan. 2025 Asset Auction
PHB 2023: Files Chapter 11 Bankruptcy in Alabama
PIER 1: Egan-Jones Hikes Senior Unsecured Ratings to BB+
PILGRIM'S PRIDE: Egan-Jones Hikes Senior Unsecured Ratings to BB+
PLUMBING CO: Seeks Chapter 11 Bankruptcy in Texas
PREMIUM CRANE: Seeks to Use Cash Collateral
PRETIUM PKG: DoubleLine ISF Marks $2.8MM Loan at 59% Off
PRIME HARVEST: Court Okays Appointment of Chapter 11 Trustee
PURDUE PHARMA: McKinsey to Pay $650MM to Settle DOJ Opioid Probe
PURDUE PHARMA: Three Bankruptcy Court Orders Affirmed
RAZOR ENERGY: Completes Sale to Texcal Energy in CCAA Deal
RBX INC: Case Summary & 20 Largest Unsecured Creditors
RED LOBSTER: Court Dismisses Major Suit with Prejudice
REDLINE METALS: Court Approves Interim Use of Cash Collateral
REMNANT OF FAITH: Commences Subchapter V Bankruptcy Proceeding
RESTAURANT CORP: Sec. 341(a) Creditors' Meeting on January 13
RIN LTD II: Moody's Assigns Ba3 Rating to $5.1MM Class E-R Notes
RITE AID: Egan-Jones Withdraws D Senior Unsecured Ratings
RIVERSIDE FARMERS: Gets OK to Use SBA's Cash Collateral
ROYAL JET: Gets Interim OK to Use Cash Collateral Until Jan. 31
RYERSON HOLDING: S&P Alters Outlook to Negative, Affirms 'BB-' ICR
SCREENVISION LLC: Moody's Cuts CFR to 'Caa3', Outlook Negative
SEAQUEST HOLDINGS: Gets Interim OK to Use Cash Collateral
SEARS AUTHORIZED: Files $177MM Suit vs. ESL Investments, et al.
SEMINOLE HOSPITAL: Moody's Lowers Issuer & GOLT Ratings to Caa2
SGZ GROUP: Stephen Gray Named Subchapter V Trustee
SHANKARA LLC: Case Summary & Five Unsecured Creditors
SIGNATURE MECHANICAL: Claims to be Paid From Continued Operations
SILVERGATE CAPITAL: Slams Stockholder's Take Over Bid in Chapter 11
SKILLSOFT FINANCE II: DoubleLine ISF Marks $1.3MM Loan at 18% Off
SLEEP COUNTRY: DBRS Finalizes BB Issuer Rating
SMITH HEALTH: U.S. Trustee Appoints Margaret Barajas as PCO
SOLANO HOME: Commences Subchapter V Bankruptcy Process
SOORMA TRUCKING: Unsecureds to Split $50K over 60 Months
SOUND INPATIENT: DoubleLine ISF Marks $3.7MM Loan at 84% Off
SOUTH BROADWAY: Updates Unsecureds & Several Secured Claims Pay
SPECTRUM GROUP: Silver Point Marks $19.2MM Loan at 46% Off
SPELL IT WITH COLOR: Gets OK to Use Cash Collateral Until Jan. 20
SPICEY PARTNERS: Gets Interim OK for DIP Loan From Zimmer Inc.
SPIRIT AIRLINES: Egan-Jones Cuts Senior Unsecured Ratings to D
SPIRIT AIRLINES: US Trustee Seeks to Delay Chapter 11 Proceedings
SPLASH BEVERAGE: Files Prospectus for Sale of 82.9MM Shares
SRM-DOUBLE: To Sell Heyburn Property to Barclay Limited for $2.1MM
STAR PUMP: Files Chapter 11 Bankruptcy Protection
STELLA SIOMKOS: Court Denies Motion to Recuse
STEWARD HEALTH: No Patient Care Concern, 3rd PCO Report Says
STEWARD HEALTH: Susan Goodman Submits Third PCO Report
STRIVE CONCRETE: Gets Final Approval to Use Cash Collateral
SUMMIT HOTEL: Egan-Jones Retains BB Senior Unsecured Ratings
SUNPOWER CORP: Egan-Jones Withdraws BB Senior Unsecured Ratings
TC ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings
TECTUM ROOFING: Gets OK to Use Cash Collateral Until Feb. 19
TEMADA INC: Gets Interim OK to Use Cash Collateral Until Jan. 9
TEXACO INC: Spars With State Officials Over 1988 Chapter 11 Plan
TIJUANA FLATS: Restaurants LLC Unsecured Claims to Split $200K
TRI-CITY SERVICE: George Oliver Named Subchapter V Trustee
TROPHY CUPCAKES: Files Chapter 11 Bankruptcyin W.D. Washington
ULTRA SAFE: Sued by Bidder Over Violations of Stalking-Horse Deal
UNDERGROUND SOLUTIONS: Gets OK to Use Cash Collateral Until May 31
UPBOUND GROUP: Egan-Jones Withdraws B Senior Unsecured Ratings
UWM HOLDINGS: Fitch Gives 'BB-' Final Rating on $800MM Unsec Notes
V MANAGEMENT: Gets Interim OK to Use Cash Collateral Until Jan. 14
V1 TECH: Seeks Chapter 11 Bankruptcy Protection in Texas
VALDESIA GARDENS: Case Summary & Seven Unsecured Creditors
VERINT SYSTEMS: Egan-Jones Hikes Senior Unsecured Ratings to BB+
VIASAT INC: Egan-Jones Retains CCC+ Senior Unsecured Ratings
VILLAGE OAKS: Lisa Holder Appointed as Chapter 11 Trustee
VIVOT EQUIPMENT: Gets OK to Use Cash Collateral Until Dec. 19
VORTEX OPCO: DoubleLine ISF Marks $1.3MM Loan at 28% Off
VROOM INC: Unsecureds Will Get 100% of Claims in Prepackaged Plan
WELLPATH HOLDINGS: Court Stays Morgan Case Due to Bankruptcy
WELLPATH HOLDINGS: U.S. Trustee Appoints Susan Goodman as PCO
WILLENNIUM LLC: U.S. Trustee Unable to Appoint Committee
WISCONSIN & MILWAUKEE: Counsel's Administrative Claim Disallowed
WISCONSIN & MILWAUKEE: Seeks to Extend Exclusivity to Feb. 7, 2025
YATES PROPERTIES: Unsecureds Will Get $20K over 5 Years
ZHANG MEDICAL: Updates Landlord Claim Pay Details
[*] Bloomberg Expands Practical Guidance for Legal Professionals
[*] Fitch Puts 15 Corp. Entities Rating Under Criteria Observation
[*] Groups Condemn "Betrayal of Public Health" Amid Settlement
[*] Singh Returns to Weil Gotshal as Restructuring Dep't Co-Chair
[^] BOND PRICING: For the Week from December 9 to 13, 2024
*********
48FORTY SOLUTIONS: Silver Point Marks $85.6MM Loan at 17% Off
-------------------------------------------------------------
Silver Point Specialty Lending Fund has marked its $71,875,000 loan
extended to 48Forty Solutions LLC to market at $3,770,000 or 83% of
the outstanding amount, as of September 30, 2024, according to a
disclosure contained in Silver Point's Amended Form 10-Q for the
quarterly period ended September 30, 2024 filed with the Securities
and Exchange Commission.
Silver Point is a participant in a First Lien Term Loan to 48Forty
Solutions LLC. The loan accrues interest at a rate of 11.3%
(S+6.10%, 1.00% Floor) per annum. The loan is scheduled to mature
on November 30, 2026.
Silver Point Specialty Lending Fund is an externally managed
closed-end management investment company that has elected to be
regulated as a business development company under the Investment
Company Act of 1940, as amended and was originally formed on July
31, 2014. Effective November 15, 2021, Silver Point changed its
name to Silver Point Specialty Lending Fund and converted to a
statutory trust organized under the laws of the State of Maryland.
Silver Point is an emerging growth company under the Jumpstart Our
Business Startups Act of 2012. For so long as Silver Point remains
an emerging growth company under the JOBS Act, it will be subject
to reduced public company reporting requirements.
Silver Point is led by Edward Mulé, Chief Executive Officer; and
Jesse Dorigo, Chief Financial Officer. The Fund can be reached
through:
Edward Mule
Silver Point Specialty Lending Fund
Maryland, Two Greenwich Plaza, Suite 1
Greenwich, CT, 06830
Tel.: (203) 542-4200
48Forty is a pallet management services company in North America.
ABRAXAS LLC: Kicks Off Subchapter V Bankruptcy in Florida
---------------------------------------------------------
On December 4, 2024, Abraxas LLC filed Chapter 11 protection in the
Middle District of Florida. According to court filing, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
About Abraxas LLC
Abraxas LLC, doing business as Asian Chao, is part of the MDP
Restaurant Group, a privately owned, multi-concept, quick-service
restaurant managing company formed in 2020. Headquartered in the
Orlando, Florida area, MDP operates over a dozen restaurants
across five states. MDP Restaurant Group owns the brands BAMBUU
Asian Eatery and HASUU Japan and operates Asian Chao, Maki of
Japan, Tobu restaurants as a franchise partner of Food Systems
Unlimited.
Abraxas LLC
Honorable Bankruptcy Judge Grace E. Robson handles the case.
The Debtor is represented by:
R.Scott Shuker, Esq.
SHUKER & DORRIS, P.A.
121 S. Orange Avenue
Suite 1120
Orlando, FL 32801
Tel: (407) 337-2060
E-mail: rshuker@shukerdorris.com
ADELAIDA CELLARS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Adelaida Cellars, Inc.
Adelaida Vineyards & Winery
5805 Adelaida Road
Paso Robles, CA 93446
Business Description: The Debtor is a family-owned and operated
winery.
Chapter 11 Petition Date: December 13, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-11409
Debtor's Counsel: Hamid R. Rafatjoo, Esq.
RAINES FELDMAN LITTRELL LLP
1900 Avenue of the Stars
19th Floor
Los Angeles, CA 90067
Tel: 310-440-4100
E-mail: hrafatjoo@raineslaw.com
Debtor's
CRO Provider: FORCE TEN PARTNERS, LLC
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Nicholas D. Rubin as chief restructuring
officer.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/4MT2LKQ/Adelaida_Cellars_Inc__cacbke-24-11409__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Chase Card Services Trade/Credit $30,063
Cardmember Services Card
PO Box 6294
Carol Stream, IL
60197-6294
Tel: 800-275-0863
2. State Water Trade/Water $10,601
Resources Control Board Rights and
Annual Permit Fees Discharge Permits
PO Box 1888
Sacramento, CA
95812-1888
Tel: 805-549-3550
3. PG & E Trade/Utilities $7,125
Box 997300
Sacramento, CA
95899-7300
Tel: 800-743-5000
4. Wine Direct Fulfillment Trade/ $5,632
PO Box 92146 Warehousing &
Las Vegas, NV Order Fulfillment
89193-2146 Services
Mike Dean
Email: mike.dean@winedirect.com
Phone: 805 448-7752
5. Laffort U.S.A. Trade/ $3,802
1460 Cader Lane, Winemaking
Ste C Supplies
Petaluma, CA 94954
Bryanna Grebe
Phone: 707 775-4530
6. All Ways Clean Trade/ $3,546
P.O. Box 462 Janitorial
Morro Bay, CA 93443
Ino Brito
Email: ino@allwayscorp.com
Phone: 805 540-4726
7. Suburban Propane - Trade/Janitorial $1,721
1647
PO Box 12027
Fresno, CA
93776-2027
Tel: 805-238-1622
8. Sovos Compliance LLC Trade/Tax $1,720
PO Box 347977 Compliance
Pittsburgh, PA Software
15251-4977
Email: accounting-us-ship@sovos.com
Phone: 888 449-5285
9. Integrity Wine Company Trade/Equipment $1,700
PO Box 1664 Rental
Templeton, CA 93465
Blake Vandehoef
Email: blake.vandehoef@integritywinecompany.com
Phone: 805 369-1606
10. Matheson Tri-Gas Inc Trade/Gas $1,531
Dept LA 23793 Supply &
Pasadena, CA Cylinder Rentals
91185-3793
Email: info@mathesongas.com
Phone: 805 239-1736
11. County of San Luis Trade/Licensing $1,438
Obispo - EH & Hazmat Fees
PO Box 1489
San Luis Obispo,
CA 93406-1489
Tel: 805-781-5544
12. Glassed Over Trade/Merch $1,196
Candles, LLC Supplier
PO Box 1881
Lomita, CA 90717
Taylor Engen
Email: taylor@glassed-over.com
Phone: 310 766-9030
13. Encore Glass Inc Trade/Cork $1,188
PO Box 8540 Supplier
Pasadena, CA
91109-8540
Email: billing@encoreglass.com
Phone: 707 745-4444
14. Ganau America, Inc Trade/Capsule $1,110
PO Box 1974 Supplier
Sonoma, CA 95476
Email: accounting@ganauamerica.com
Phone: 707 939-1774
15. Acrolon Trade/Cellar $995
Technologies, Inc. Software
19201 Sonoma Hwy
#256
Sonoma, CA 95476
Email: info@acrolon.com
Phone: 707 938-1300
16. Landsberg/EPS Trade/Packaging $931
PO Box 101144 Supplies
Pasadena, CA
91189-1144
Email: arinquiries@oroagroup.com
Phone: 805 434-9968
17. CCOF Trade/Organic $677
2155 Delaware Ave., Certification
Suite 150 Agency
Santa Cruz, CA 95060
Email: ccof@ccof.org
Phone: 831 423-2263
18. ATP Group Trade/Chemicals $622
2 Madison Avenue
Suite 210
Larchmont, NY 10538
Tel: 805-237-1223
19. ETS Laboratories Trade/Lab $449
899 Adams Street, Analysis Services
Ste A
St Helena, CA 94574
Tel: 707-302-1057
20. Double Barrel Express Trade/Freight $448
PO Box 5567 Carrier
Napa, CA 94581
Email: trudy@doublebarrelexpress.com
AFINITI LTD: Represented by Latham & Watkins in Recapitalization
----------------------------------------------------------------
Afiniti, Ltd., a global customer experience and artificial
intelligence provider, has announced that it has successfully
completed its recapitalization transaction with its secured
lenders, led by Vista Credit Partners, and significant shareholder,
The Resource Group International Limited. The transaction enables
Afiniti to move forward with a stronger financial foundation to
accelerate growth. The transaction was completed following court
approvals in Bermuda and in a Chapter 15 proceeding in the United
States.
Latham & Watkins LLP represented Afiniti in the transaction with a
multidisciplinary team led by Restructuring & Special Situations
partners George Davis, Bruce Bell, David Hammerman, and Jason Gott,
with associates Jonathan Gordon and Meghana Vunnamadala. Advice was
provided on M&A matters by partner Jane Greyf and counsel Ben
Kaplan, with associates Jesse Lake, Jack Katzenstein, and Eric
Rothman; on banking matters by partner Nicole Fanjul and counsel
Shahid Jamil, with associates Diana Duan, Kavi Huded, and Signe
Olsson; on real estate matters by counsel Karen Ritter; on tax
matters by partner Joseph Kronsnoble and counsel William Kessler,
with associate Lukas Kutilek; on securities matters by partners
Greg Rodgers and Benjamin Cohen, with associates James Sullivan and
Ryan Gold; on foreign regulatory matters by partner Cesare Milani
and counsel Ludmilla Le Grand, with associates Edoardo Cassinelli
and James Mathieson; on employee benefits matters by partner
Benjamin Rosemergy, with associate
Daniel Bop; on intellectual property matters by partners Jeffrey
Tochner and Jessica Cohen, with associate Alan Kim; and on
litigation matters by partners Matthew Salerno and Amy Quartarolo.
About Afiniti Ltd.
Afiniti Ltd. provides management consultancy services.
Afiniti Ltd. sought relief under Chapter 15 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 1:24-bk-12539) on Nov. 3, 2024, to
seek U.S. recognition of the liquidation proceedings in Bermuda.
The Debtor tapped Young Conaway Stargatt & Taylor LLP as its U.S.
counsel.
AFRIN TRANSPORT: Gets Final OK to Use Cash Collateral
-----------------------------------------------------
Afrin Transport, Inc. received final approval from the U.S.
Bankruptcy Court for the Central District of California to use the
cash collateral of JPMorgan Chase, N.A.
The final order signed by Judge Theodor Albert authorized the
company to use its secured creditor's cash collateral to pay
expenses consistent with its budget, with the ability to increase
any budget line item by up to 15%.
As protection, the court ordered Afrin Transport to make a monthly
payment of $3,128 to JPMorgan. In addition, a replacement lien will
be granted to JPMorgan to the extent that its cash collateral is
actually used.
About Afrin Transport
Afrin Transport, Inc. is a trucking company in Anaheim, Calif.,
that offers same-day shipping services. It ships freight for a wide
variety of businesses throughout Southern California, including
warehouse delivery, to and from rail/intermodal delivery and
department store delivery.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12497) on October
1, 2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. John-Patrick Fritz serves as Subchapter V
trustee.
Matthew D. Resnik, Esq., at RHM Law, LLP represents the Debtor as
bankruptcy counsel.
AGNC INVESTMENT: Egan-Jones Retains BB- Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on November 19, 2024, maintained its
'BB-' local currency senior unsecured ratings on debt issued by
AGNC Investment Corp.
Headquartered in Bethesda, Maryland, AGNC Investment Corp. is an
internally-managed real estate investment trust.
AKRK BETHANY: Eric Huebscher Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 2 appointed Eric Huebscher of Huebscher
& Co. as Subchapter V trustee for AKRK Bethany Holdings LLC.
Mr. Huebscher 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. Huebscher declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Eric Huebscher
Huebscher & Co.
301 E 87th St. - 20E
New York, NY 10128
Phone: 917-763-3891
Email: ehuebscher@huebscherconsulting.com
About AKRK Bethany Holdings
AKRK Bethany Holdings LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-23015) on
November 18, 2024, with $1,000,001 to $10 million in assets and
liabilities.
Judge Sean H. Lane presides over the case.
ALASKA AIR: Egan-Jones Retains BB- Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on November 25, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Alaska Air Group, Inc. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Seattle, Washington, Alaska Air Group, Inc. is an
airline holding company.
ALMOND COW: Gets Final OK to Use Cash Collateral
------------------------------------------------
Almond Cow, Inc. received final approval from the U.S. Bankruptcy
Court for the Northern District of Georgia, Atlanta Division, to
use the cash collateral of its secured creditors.
The final order, signed by Judge Lisa Ritchey Craig, approved the
use of cash collateral to pay operating expenses until the
confirmation of a Chapter 11 plan or through the date the company's
right to use cash collateral terminates, whichever is earlier.
J.P. Morgan Chase Bank N.A. and the U.S. Small Business
Administration have interest in the cash collateral on account of
their pre-bankruptcy loans. Other creditors including CFT Clear
Finance Technology Corp., CT Corp, FLCC, Middesk Inc., Quiby Inc.,
Sellers Funding Corp., and Wells Fargo Vendor Financial Services
LLC may also assert interest in the cash collateral.
As protection, these secured creditors will be given a replacement
lien on personal property owned by Almond Cow, excluding any claims
or causes of action and their proceeds.
About Almond Cow
Almond Cow Inc. -- https://almondcow.co -- is a plant-based milk
maker.
Almond Cow filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-61376) on October 25,
2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Brett Goodson, president of Almond Cow,
signed the petition.
Judge Lisa Ritchey Craig oversees the case.
The Debtor is represented by Ashley Reynolds Ray, Esq., at
Scroggins, Williamson & Ray, P.C.
ALPINEBAY INC: Sec. 341(a) Meeting of Creditors on January 7
------------------------------------------------------------
On December 6, 2024, Alpinebay Inc. 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 January 7,
2025 at 10:00 AM at UST-SVND1, TELEPHONIC MEETING. CONFERENCE
LINE:1-866-902-1354, PARTICIPANT CODE:7380000.
About Alpinebay Inc.
Alpinebay Inc. is a building materials and manufacturing company
located in California. Its products include EZ-Niches, a
lightweight and durable material, offering exceptional strength and
longevity. These niches not only provide a functional storage space
for shower essentials but also serve as a stylish focal point for
decorative tiles. It also offers Ultra X Guard, a liquid polymer
membrane that provides flawless waterproofing and fracture
protection up to 1/8" without the necessity of additional fabric.
Alpinebay Inc. sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11386) on
December 6, 2024. In the petition filed by Anne Xiuying Ho, as
CEO, the Debtor reports estimated assets up to $50,000 and
estimated liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Ronald A. Clifford III handles the case.
ALUMAX INC: Seeks Bankruptcy Protection in Puerto Rico
------------------------------------------------------
On December 6, 2024, Alumax Inc. filed Chapter 11 protection in the
District of Puerto Rico. According to court filing, the Debtor
reports $2,954,034 in debt owed to 1 and 49 creditors. The petition
states funds will not be available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on January 10,
2025 at 9:00 AM via Telephonic Conference Information for
AUST/Trial Attys.
About Alumax Inc.
Alumax Inc. manufactures aluminum doors and windows with its
manufacturing infrastructure located in San Sebastian, Anasco,
Ponce and San Domingo.
Alumax Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. P.R. Case No. 24-05312) on December 6, 2024. In the
petition filed by Frank J. Jimenez, Cruz as president, the Debtor
reports total assets of $416,851 and total liabilities of
$2,954,034.
The Debtor is represented by:
Javier Vilarino, Esq.
VILARINO AND ASSOCIATES, LLC
PO Box 9022515
San Juan, PR 00902
Tel: (787) 565-9894
Email: jvilarino@vilarinolaw.com
ALVARIA HOLDCO: 92% Markdown for DoubleLine ISF $2.5MM Loan
-----------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $2,579,773 loan
extended to Alvaria Holdco (Aspect Software) Second-Out T/L to
market at $206,382 or 8% of the outstanding amount, according to a
disclosure contained in DoubleLine ISF's Amended Form N-CSR for the
six-month period ended September 30, 2024, filed with the U.S.
Securities and Exchange Commission.
DoubleLine ISF is a participant in a Senior Secured First Lien Term
Loan to Alvaria Holdco (Aspect Software) Second-Out T/L. The loan
accrues interest at a rate of 6.97% (1 Month term SOFR US+ 2%,0 %
FLOOR) per annum. The loan matures on May 18, 2028.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
Alvaria is a holding company that operates two technology
providers: Alvaria CX and Aspect. Alvaria is a company that aims to
improve customer experience and workforce engagement through
software.
ALVARIA HOLDCO: DoubleLine ISF Marks $1.1MM Loan at 55% Off
-----------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $1,111,437 loan
extended to Alvaria Holdco (Aspect Software) Second-Out T/L to
market at $501,541 or 45% of the outstanding amount, according to a
disclosure contained in DoubleLine ISF's Amended Form N-CSR for the
six-month period ended September 30, 2024, filed with the U.S.
Securities and Exchange Commission.
DoubleLine ISF is a participant in a Senior Secured First Lien Term
Loan to Alvaria Holdco (Aspect Software) Second-Out T/L. The loan
accrues interest at a rate of 6.08% (1 Month term SOFR US+ 1%,0.75%
FLOOR) per annum. The loan matures on May 18, 2028.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
Alvaria is a holding company that operates two technology
providers: Alvaria CX and Aspect. Alvaria is a company that aims to
improve customer experience and workforce engagement through
software.
ARGENTARIA REAL: Texas Cold Storage Facility Up for Sale
--------------------------------------------------------
Hilco Real Estate Sales puts a cold storage facility owned by
Argentaria Real Estate LLC, which is located in 9901 S. Keystone
Drive, Pharr, Texas. Deadline for interested purchasers to bid for
the property is Jan. 22, 2025. The sale is subject to the approval
of the U.S. Bankruptcy Court for the Southern District of Texas.
About Argentaria Real Estate
Argentaria Real Estate LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Argentaria Real Estate sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-70155) on July 1,
2024. In the petition filed by Heriberto Vlaminck Ley, member &
sole manager, the Debtor disclosed between $1 million and $10
million in both assets and liabilities.
Judge Eduardo V. Rodriguez oversees the case.
T. Josh Judd, Esq., at Andrews Myers, PC, serves as the Debtor's
legal counsel.
ASTRA ACQUISITION: DoubleLine ISF Marks $1.2MM Loan at 79% Off
--------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $1,204,012 loan
extended to Astra Acquisition Corp to market at $250,836 or 21% of
the outstanding amount, according to a disclosure contained in
DoubleLine ISF's Amended Form N-CSR for the six-month period ended
September 30, 2024, filed with the U.S. Securities and Exchange
Commission.
DoubleLine ISF is a participant in a Senior Secured First Lien Term
Loan to Astra Acquisition Corp. The loan accrues interest at a rate
of 10.58% (3 Month term SOFR+ 5.25%) per annum. The loan matures on
October 25, 2028.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
Astra Acquisition Corp. is a provider of cloud-based software
solutions for higher educational institutions.
ASTRA ACQUISITION: DoubleLine ISF Marks $761,213 Loan at 17% Off
----------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $761,213 loan
extended to Astra Acquisition Corp to market at $631,046 or 83% of
the outstanding amount, according to a disclosure contained in
DoubleLine ISF's Amended Form N-CSR for the six-month period ended
September 30, 2024, filed with the U.S. Securities and Exchange
Commission.
DoubleLine ISF is a participant in a Senior Secured First Lien Term
Loan to Astra Acquisition Corp. The loan accrues interest at a rate
of 12.08% (3 Month term SOFR+ 6.75%) per annum. The loan matures on
February 25, 2028.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
Astra Acquisition Corp. is a provider of cloud-based software
solutions for higher educational institutions.
ATI INC: Egan-Jones Retains B+ Senior Unsecured Ratings
-------------------------------------------------------
Egan-Jones Ratings Company on November 15, 2024, maintained its
'B+' foreign currency and local currency senior unsecured ratings
on debt issued by ATI Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Dallas, Texas, ATI Inc. produces specialty
materials.
ATLANTIC INT'L: Lenders Set Securities Up for Sale on Dec. 23
-------------------------------------------------------------
SPP Credit Advisors LLC, as agent for certain lenders, will conduct
a virtual UCC public auction on Dec. 23, 2024, at 3:00 Et of
approximately 25,423,729 of the shares of common stock of Atlantic
International Corp (OTC: ATLN), a staffing company currently owned
by IDC Technologies Inc., borrower. Investors wishing to register
in order to bid must contact Todd Kumble at SPP at 646-436-1808.
To purchase the securities, investors must be "accredited
investors" within the meaning of Rule 501(a) of Regulation D Under
the Securities Act of 1933, as amended.
BABY K'TAN: Gets Interim OK to Use Cash Collateral
--------------------------------------------------
Baby K'Tan, LLC received interim approval from the U.S. Bankruptcy
Court for the Southern District of Florida, Fort Lauderdale
Division, to use its secured creditors' cash collateral.
The company requires the use of cash collateral to pay its regular
operating expenses.
JP Morgan Chase Bank, N.A. and Regions Bank assert an interest in
the cash collateral.
As adequate protection for the use of their cash collateral, both
creditors were granted replacement liens to the same extent as
their pre-bankruptcy liens. The lien will attach to all
post-petition cash collateral regardless of the nature of such cash
collateral or the bank account into which it is deposited.
The next hearing is scheduled for Dec. 19.
About Baby K'tan LLC
Baby K'tan, LLC manufactures and sells ready-to-wear & soft fabric
wrap pet and baby carrier. The Pet K'tan Pet Carrier is a patented
ready-to-wear soft fabric wrap that allows the caregiver to wear
their pet in several positions without any complicated wrapping or
buckling. The Baby K'tan Baby Carrier has a patented double-loop
design that functions as a sling, wrap and baby carrier, yet there
is no wrapping, no buckling, and no adjusting any rings.
Baby K'tan sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-22671) on December 3,
2024, with up to $1 million in assets and up to $10 million in
liabilities. Michal Chesal, president and co-founder of Baby K'tan,
signed the petition.
Judge Peter D. Russin oversees the case.
Isaac Marcushamer, Esq., at DGIM Law PLLC, represents the Debtor as
legal counsel.
BAKELITE US: Moody's Affirms 'B1' CFR & Alters Outlook to Negative
------------------------------------------------------------------
Moody's Ratings has affirmed Bakelite US HoldCo, Inc.'s B1
Corporate Family Rating, B1-PD Probability of Default Rating, and
B1 rating on its first lien backed senior secured bank credit
facility. At the same time, Moody's have assigned a B1 rating to
its proposed $825 million seven-year backed first lien senior
secured term loan B. Net proceeds from the proposed first lien term
loan will be used to refinance its existing $585 million first lien
term loan, fund shareholder distributions, and pay related
transaction fees and expenses. The outlook on these ratings has
been changed to negative from stable.
The ratings on Bakelite's existing 1st lien term loans will be
withdrawn once this transaction closes and the debt is repaid.
Governance considerations are a key driver of this rating action.
Moody's revised Bakelite's ESG Credit Impact Score (CIS) to CIS-4
from CIS-3 to reflect the change in the Governance Issuer Profile
Score (IPS), which was changed to G-4 from G-3 reflecting risks
associated with the company's financial strategy and risk
management and in particular its two debt-funded shareholder
distributions in 2024.
RATINGS RATIONALE
The change in outlook to negative reflects Bakelite's weakened
credit metrics driven by the large debt increase with the new debt
issuance and Moody's expectation that company's financial profile
may remain weak for its rating in the next 12 to 18 months despite
expected improvement in its earnings. Furthermore, Bakelite has
demonstrated a more aggressive financial policy than Moody's
original expectation with its two sizable, debt-funded shareholder
return transactions in 2024, which weakens its credit profile.
Bakelite's business and financial performance remained solid in
2024. Despite weak demand recovery and flat sales volume amid a
challenging housing market, Bakelite improved its margins and
EBITDA driven by procurement savings, efficiency gains, and
execution of pricing initiatives. But at the same time, the company
has been increasing its total debt substantially with partial
proceeds used for shareholder distribution which has led to a more
leveraged capital structure. With this new debt issuance, Bakelite
will have completed two debt funded shareholder return transactions
with a total of more than $330 million debt addition to its balance
sheet during the year. This is a deviation from Moody's prior
expectation of Bakelite's conservative financial policy, which was
a key supporting factor of its B1 CFR as a privately- owned
company.
Bakelite's leverage, as measured by Moody's adjusted debt/EBITDA,
will increase to around mid-5.0x in 2024, up from 4.5x in 2023 by
Moody's estimate. While Bakelite's earnings are expected to improve
with the realization of synergy benefits and moderate volume
increase in 2025, the likelihood of balance sheet debt reduction is
low, in Moody's view, under its shareholder friendly financial
policy. In Moody's base case scenario which assumes no additional
debt-funded shareholder distributions, Moody's expect Bakelite's
leverage will improve but remain elevated in the high-4.0x by end
2025, which positions the company weakly for its B1 rating.
Bakelite's business profile is supported by its leading market
share in phenolic specialty resins in Europe and the US with
globally recognized brands sold into diverse end markets, including
building products, industrial products, transportation, and
chemical intermediates. High barriers to entry facilitated by
location and proximity to customers, the heavy water content of
products, and short shelf life are also positive factors in the
business profile.
Bakelite's credit profile is constrained by its modest scale,
significant exposure to the cyclical construction and auto end
markets, and some customer and supplier concentration risks.
Moody's also consider the risks related to its shareholder-friendly
financial policy and private-equity ownership as limiting factors
to the rating.
Moody's expect Bakelite to maintain good liquidity supported by
projected positive free cash flow and a committed $100 million ABL
facility, availability under which is expected to be subject to a
leverage incurrence test. As of September 30, 2024, the company had
about $29 million of cash on hand and no drawings under its ABL
revolver.
The B1 rating assigned to the new first lien term loan is in line
with the B1 CFR reflecting the pari passu ranking of the
collateral.
RATING OUTLOOK
The negative outlook reflects the expectations that Bakelite's
credit metrics will remain weak for its rating for an extended
period and a restoration of a prudent capital structure may be slow
and uncertain over the next 12 to 18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A return to stable outlook would be predicated upon a reduction in
leverage sustained below the low- to mid-4.0x. An upgrade is
unlikely given company's private equity ownership but could be
considered if operating performance improves materially and more
conservative financial leverage target is set and achieved with
leverage ratio below 3.5x on sustained basis.
Moody's would consider a downgrade if Bakelite's operating
performance and margins were to deteriorate, and if adjusted gross
leverage is sustained above 4.5x, or if liquidity becomes an
issue.
ESG CONSIDERATIONS
Environmental, social and governance factors are important
considerations in Bakelite's credit quality. Bakelite's CIS-4
(Credit Impact Score) mainly reflects the environmental and social
risks due to the nature of the chemicals used and produced at its
facilities. The company also has governance associated risks as
evidenced by its shareholder friendly financial policy and private
equity ownership.
Headquartered in Atlanta, GA, Bakelite is a global producer of
phenolic specialty resins, amino resins and thermoset molding
compounds. The company has operational concentration in Europe and
North America. Bakelite generated total sales of approximately $1.3
billion for the last twelve months ended September 30, 2024.
The principal methodology used in these ratings was Chemicals
published in October 2023.
BARTLEY INVESTMENTS: Court OK's Sale of Tampa Property for $375K
----------------------------------------------------------------
Bartley Investments, Ltd., received the green light from the U.S.
Bankruptcy Court for the Middle District of Florida, Tampa
Division, to sell its Property located at 2815 W. Leila Avenue,
Tampa, FL 33611.
The Property, more particularly described as Lot 15 in Block "D" of
BROBSTON FENDIG & CO.S HALFWAY ADDITION, will be sold "as is" and
free and clear of any liens, claims, interests, encumbrances, and
security interests of any kind, to Brandon Lanci and/or Milana
Custom Homes LLC, or their assigns for the sum of $375,000.
Dr. Ruediger Mueller, the Subchapter V trustee, is authorized to
execute any and all documents necessary to consummate the sale of
the Real Property on behalf of the Debtor, including, but not
limited to the "AS IS" Residential Contract for Sale and Purchase
and the deed.
The Debtor is authorized to pay all broker's fees, liens, and all
ordinary and necessary closing expenses normally attributed to a
seller of real estate at closing.
The net sale proceeds after payment of the broker’s fees, liens,
and all ordinary and necessary closing costs will be held in trust
in the Debtor-in-possession bank account until further order of the
Court regarding the distribution of the net sale proceeds.
About Bartley Investments Ltd.
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.
BAUSCH + LOMB: Exploring Potential Sale
---------------------------------------
Ike Swetlitz of Bloomberg Law reports that Bausch + Lomb has
authorized its management and advisers to consider a potential sale
of the eye health company after its shares fell, following reports
of stalled deal negotiations with private equity firms.
In a statement on Thursday, December 12, 2024, the company said
that a sale is "one of several options being considered to achieve
a full separation from Bausch Health Companies Inc." It noted that
"the process is ongoing, with no assurance of a transaction,"
according to report.
Although the company usually refrains from commenting on deal
discussions, it issued the statement in response to an inquiry, the
report states.
About Bausch + Lomb Corporation
Bausch + Lomb Corporation is a subsidiary of Bausch Health
Companies Inc. and is a global eye health company based in Canada.
BELLTOWN FARMS: Gets Interim OK to Use Cash Collateral
-------------------------------------------------------
Belltown Farms GF Opco, LLC received interim approval from the U.S.
Bankruptcy Court for the District of Nebraska to use cash
collateral.
The Debtor requires the use of cash collateral to meet the Debtor's
bi-weekly payroll obligations, fund the necessary expenses for the
Debtor to store and preserve its existing crops, preserve and
maintain its machinery and equipment, provide the goods and
services required under its contracts with customers, pay monthly
insurance premiums, and pay for other operational expenses.
During its first year of operations, the Debtor's organic row-crop
farming operations have faced significant challenges, including
significant market price depression, input supply disruptions, and
uncharacteristic adverse weather conditions. These factors have
strained the company's financial resources, making reorganization
the most prudent course of action. As a result, the Debtor appears
to be unable, absent this restructuring, to timely repay amounts
owed to its lender, First Mid Bank & Trust, N.A. of Bloomington,
Illinois and other creditors.
To fund this operation, and prior to the petition date, the Debtor
obtained a loan from First Mid in the principal amount of $8.9
million. To secure the prepetition indebtedness, the Debtor granted
First Mid a security interest certain of the Debtor's equipment,
title vehicles, growing crop, grain, inventory, and accounts
receivable.
The final hearing is set for Jan. 6.
About Belltown Farms GF Opco
Belltown Farms GF Opco, LLC is engaged in the business of oilseed
and grain farming.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Neb. Case No. 24-41171) on December 2,
2024. In the petition signed by Peter Tom Hill-Norton, authorized
signatory, the Debtor disclosed up to $50 million in both assets
and liabilities.
Patrick R. Turner, Esq., at Turner Legal Group, LLC, represents the
Debtor as legal counsel.
BEYOND AIR: Israeli Ministry OKs Use of LV UNO in Clinical Trial
----------------------------------------------------------------
Beyond Cancer, Ltd., a majority-owned affiliate of Beyond Air,
Inc., said the Israeli Ministry of Health has approved the use of
Low Volume UNO (LV UNO) in a Phase 1b clinical trial of LV UNO in
combination with anti-PD-1 therapy, Beyond Air disclosed in a Form
8-K filing with the U.S. Securities and Exchange Commission. A
full-text copy of the press release is available at
https://tinyurl.com/mre4x85
About Beyond Air
Headquartered in Garden City, N.Y., Beyond Air, Inc. --
www.beyondair.net -- is a commercial-stage medical device and
biopharmaceutical company developing a platform of nitric oxide
generators and delivery systems (the "LungFit platform") capable of
generating NO from ambient air. The Company's first device, LungFit
PH, received premarket approval from the FDA in June 2022. The NO
generated by the LungFit PH system is indicated to improve
oxygenation and reduce the need for extracorporeal membrane
oxygenation in term and near term (34 weeks gestation) neonates
with hypoxic respiratory failure associated with clinical or
echocardiographic evidence of pulmonary hypertension in conjunction
with ventilatory support and other appropriate agents.
East Hanover, New Jersey-based Marcum LLP, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated June 24, 2024, citing that the Company has incurred
significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
Beyond Air reported a net loss of $64.30 million for the year ended
March 31, 2024, compared to a net loss of $59.40 million for the
year ended March 31, 2023.
BGC PARTNERS: Egan-Jones Withdraws BB+ Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on November 19, 2024, withdrew its 'BB+'
local currency senior unsecured ratings on debt issued by BGC
Partners, Inc.
Headquartered in New York, BGC Partners, Inc. is a brokerage and
financial technology company.
BLACK DIAMOND: Loses Bid to Enforce Automatic Stay in Wyoming Case
------------------------------------------------------------------
Judge Gregory L. Taddonio of the United States Bankruptcy Court for
the Western District of Pennsylvania denied Black Diamond Energy of
Delaware, Inc.'s motion to enforce automatic stay and request for
sanctions in the case captioned as BLACK DIAMOND ENERGY OF
DELAWARE, INC., Movant, v. WYOMING OIL AND GAS CONSERVATION
COMMISSION, Respondent (Bankr. W.D. Pa.) .
Hours after Black Diamond Energy of Delaware, Inc. commenced this
case, the Wyoming Oil and Gas Conservation Commission sealed its
oil and gas wells due to the Debtor's noncompliance with the
Commission's prepetition orders. A year later, the Debtor moved to
enforce the automatic stay and recover damages after the Commission
re-sealed wells that the Debtor continued to operate with impunity.
The Commission objected, asserting that its actions were excepted
from the stay under section 362(b)(4) of the Bankruptcy Code as an
exercise of its police and regulatory powers. Layers of complexity
aside, the dispute boils down to this: the Debtor argues that the
Commission seeks to extract monetary penalties arising from a tax
dispute; the Commission contends that it is enforcing coercive
measures, including the provision of a bond, to ensure the Debtor's
future compliance with its rules and orders.
The Debtor alleges four violations of the automatic stay:
(1) the July 2022 sealing of the wells;
(2) the July and August 2022 orders scheduling and then
continuing a severance tax enforcement hearing;
(3) the June Letter; and
(4) the June 2023 re-sealing of the wells.
The Commission contends all these acts fall within the police and
regulatory powers exception to the stay. The Commission qualifies
as a "governmental unit" for purposes of section 362(b)(4)124 and
"exercises the police power of the State of Wyoming when it issues
its orders." Still, the Debtor argues the Commission only furthered
a "pecuniary purpose since the underlying basis of the orders [was]
the collection and reporting of taxes."
From the outset, the alleged stay violations based on the tax
enforcement orders can be quickly disposed of because the Debtor
neither established a willful violation nor a related injury.
Although the Commission was clearly pursuing its pecuniary interest
in unpaid taxes, the record reflects that it was unaware of the
Debtor's bankruptcy when the enforcement hearing was first noticed.
The Commission then remedied this technical stay violation, though
weeks later, by continuing the tax enforcement hearing generally.
In other words, everything worked out as it should since the
hearing did not take place. But even assuming the Commission's
three-week delay was itself willful, the Debtor has not shown it
was harmed, the Court finds.
The remaining alleged violations relate to the post-petition
sealing (and re-sealing) of oil and gas wells in which the estate
has a property interest generally protected by the automatic stay.
All stem from the same root: Order 205-2021. The seals were
authorized by Order 459-2022 and affixed post-petition because the
Debtor violated Order 205-2021. And for its part, the June Letter
reiterates that the wells will remain sealed until that occurs.
Therefore, if the purpose of the seals was to enforce Order
205-2021, then the Court must discern what it required and why.
There are two outstanding components of Order 205-2021: a $5,000
fine and the requirement to post a $25,000 bond. Notably, the
Commission has never sought to enforce them separately, though they
are analytically distinct and must be seen as such. That said, the
seals are justified so long as at least one of the unsatisfied
requirements of Order 205-2021 has a primarily non-pecuniary
purpose.
Turning first to the $5,000 fine, the Court finds that the
Commission has not shown that the enforcement of this piece of
Order 205-2021 is excepted from the stay. The Commission
levied this fine because the Debtor's tax reporting and payments
were untimely. While all civil penalties provide some deterrent
effect, the $5,000 fine is basically a liquidated damage for a past
wrong -- a prototypical money judgment. Therefore, seeking
"compliance" with this part of Order 205-2021 really is an
impermissible attempt to collect a prepetition debt, the Court
notes.
The Court observes that no evidence shows that the Commission holds
any remaining funds from the forfeited bonds to which the Debtor
would be entitled. As such, the Debtor has not established that it
satisfied the compliance bond requirement of Order 205-2021 before
the Commission sealed the wells.
The Court finds that the sealing of the Debtor's wells to compel
the provision of the compliance bond required by Order 205-2021 was
an excepted exercise of the Commission's police and regulatory
powers. As a result, the Debtor has not established a violation of
the automatic stay.
A copy of the Court's decision is available at
http://urlcurt.com/u?l=LR5XVE
Attorneys for the Debtor:
Donald R. Calaiaro, Esq.
David Z. Valencik, Esq.
Calaiaro Valencik
938 Penn Avenue, Suite 501
Pittsburgh, PA 15222
Tel: (412) 232-0930
E-mail: dcalaiaro@c-vlaw.com
dvalencik@c-vlaw.com
Attorneys for the Commission:
Stephanie A. Sneesby, Esq.
Brian Marvel, Esq.
Wyoming Attorney General's Office
444 W. Collins, Suite 3700
P. O. Box 1507
Casper, WY 82602
Tel: (307) 265-2225
About Black Diamond Energy of Delaware
Black Diamond Energy of Delaware, Inc. --
https://www.blackdiamondenergy.com/ -- is a company based in
Greensburg, Pa., which provides natural gas drilling programs for
investor partners. It specializes in coalbed methane play in the
Powder River Basin.
Black Diamond sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Pa. Case No. 22-21448) on
July 26, 2022, with up to $50,000 in assets and $10 million to $50
million in liabilities. Eric Koval, president of Black Diamond,
signed the petition.
Donald R. Calaiaro, Esq., at Calaiaro Valencik and Eric Rossi CPA,
LLC serve as the Debtor's legal counsel and accountant,
respectively.
BLUESUMMIT MEDICAL: Lender Seeks to Prohibit Cash Collateral Access
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Virginia is
set to hold a hearing on Dec. 18 on Bank of Oak Ridge's motion to
sequester cash collateral and prohibit its use by BlueSummit
Medical Group, LLC and Oasis HH Operations, LLC.
The bank has a first-priority security interest in the collateral
on account of its $843,000 loan to the companies.
In its motion, Bank of Oak Ridge expressed concern that the
companies may not be accurately accounting for the cash collateral
and may be using it for unauthorized purposes. The bank requested
that the court order the companies to segregate and account for all
cash collateral and prohibit its use without the bank's consent.
If the court authorizes the use of cash collateral, the bank
requested that the companies provide adequate protection for its
security interest.
The motion is on the court's calendar for Dec. 18.
BlueSummit and Oasis previously received interim approval to use
the bank's cash collateral. The authorization to use the collateral
expired on Dec. 13.
About BlueSummit Medical Group
BlueSummit Medical Group, LLC is a regional home-based healthcare
company in Saint Joseph, Mo.
BlueSummit and its affiliates sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D. Va. Lead Case No. 24-61191)
on October 25, 2024. At the time of the filing, BlueSummit reported
$1 million to $10 million in both assets and liabilities.
Judge Rebecca Connelly oversees the cases.
Brittany B. Falabella, Esq., at Hirschler Fleischer, P.C.,
represents the Debtor as legal counsel.
BMA LLC: Unsecureds Will Get 3.9% of Claims over 5 Years
--------------------------------------------------------
Alexander Trucking Co., Inc., a debtor affiliate of BMA LLC, filed
with the U.S. Bankruptcy Court for the District of Arizona a
Chapter 11 Plan of Reorganization dated November 13, 2024.
The primary reason for ATC filing for bankruptcy is that it was a
party to litigation with Icenhour that resulted in the seizure by
Icenhour of five trucks/tractors and fourteen trailers owned by
ATC.
That action caused ATC to cease operations. Icenhour also
transferred title to two tractors and three trailers.
The ATC believes that by allowing it to reorganize its business in
the structure, the creditors will receive a far greater return than
through a liquidation. Importantly, under this Plan, ATC's general
unsecured creditors, including Icenhour, will receive distributions
in the form of cash payments substantially more than they would
receive under Chapter 7 and Debtor will continue to operate in the
ordinary course.
Upon the Effective Date, all of the assets of the Estate will be
transferred to New ATC. New ATC will continue to operate its
business leasing tractors and trailers to other trucking companies
and owner/operators of tractors.
On the Effective Date, ATC shall open an interest-bearing account
at a Federally insured lending institution into which it shall
deposit any new amounts it receives from any person for the
purchase of Equity Security Interests in New ATC. In addition, New
ATC shall deposit into this Cash Pool all funds it is required to
pay to holders of Claims in Class 4 on a quarterly basis, pursuant
to the terms of this Plan. New ATC shall make bi-annual
distributions from the Cash Pool, pursuant to the terms of this
Plan.
Class 4 shall consist of all Allowed Unsecured Claims not entitled
to priority held by any creditor of the Debtor, including the
deficiency claims of Icenhour and First Business. ATC estimates
that the aggregate amount of general Unsecured Claims, including
the Unsecured Claims of First Business, is $910,121.41.
On the Effective Date, New ATC shall deposit any payments of new
value it receives from any of its Equity Security Holders from
which it will pay all Allowed Administrative Expenses. Thereafter,
New ATC will make additional biannual deposits of $3,500.00 into
the Cash Pool for five years after the Effective Date in order to
make the required payments to holders of Claims in this Class.
In full satisfaction of the Allowed Unsecured Claims held by each
creditor in this Class, each creditor holding an Allowed Unsecured
Claim shall receive pro rata biannual distributions in the amount
of at least $3,500.00 from the Cash Pool. The Debtor estimates the
percentage distribution to creditors holding claims in this Class
will be 3.9%.
Class 5 shall consist of all Allowed Interests in the Debtor and
all Equity Holders. All of the interests in ATC owned by BMA shall
be canceled by operation of this Plan and entry of the Confirmation
Order. Accordingly, BMA shall retain none of its interests in the
Debtor. BMA, however, shall have the option to contribute up to
$10,000.00 of new value in order to obtain equity in New ATC.
On the Effective Date, Innovative T Holdings, LLC shall make a
payment of $25,000.00 and shall be issued 100% of the Interests in
ATC. In the event BMA exercises its option to contribute new value,
it shall be issued a proportionate share of the Interests in New
Value. For illustrative purposes only if BMA contributes
$10,000.00, BMA will receive Interests equaling 28.6% and
Innovative T Holdings, LLC will receive Interests equaling 71.4% of
the issued and outstanding equity.
The Plan will be implemented, in part, as follows:
* On the Effective Date, New ATC shall become the Reorganized
Debtor.
* The Officers of the Reorganized Debtor shall oversee
implementation of the Plan and be fully empowered to act for New
ATC to implement the Plan.
* The assets of the Debtor prior to the time of confirmation
shall be all of the assets set forth in the Schedules and all
amendments thereto filed in this case.
* The Shareholders of the Reorganized Debtor shall take the
necessary actions to: (a) form the Cash Pool and begin making
deposits into and distributions from the Cash Pool, on the dates
required by the terms of this Plan, to the creditors from the Cash
Pool; (b) prosecute any and all claims, causes of action and
objections to Proofs of Claim or Proofs of Interest as determined
to be appropriate and in the best interest of the Reorganized
Debtor and the persons holding Allowed Claims; (c) take any and all
further actions necessary and appropriate to cause New ATC to
perform on all of its obligations under the terms of this Plan and
the Confirmation Order.
A full-text copy of the Plan of Reorganization dated November 13,
2024 is available at https://urlcurt.com/u?l=HnUP1z from
PacerMonitor.com at no charge.
Counsel to the Debtors:
Christopher R. Kaup, Esq.
David Barlow, Esq.
TIFFANY & BOSCO, P.A.
2525 East Camelback Road
Phoenix, AZ 85016-4237
Tel: (602) 255-6000
Fax: (602) 255-0103
E-mail: crk@tblaw.com
dmb@tblaw.com
About BMA LLC
Alleged creditors filed an involuntary Chapter 11 petition for BMA
LLC (Bankr. D. Ariz. Case No. 24-02602) on Apr. 5, 2024. The
alleged creditors are Cory Lucas, Chaney Gifford, and Dan Earl.
BOYD GAMING: Egan-Jones Retains BB- Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on November 15, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Boyd Gaming Corporation. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Las Vegas, Nevada, Boyd Gaming Corporation is a
casino entertainment company.
BUFFALO DIOCESE: Judge Considers 3rd Mediator for Ch. 11 Case
-------------------------------------------------------------
Catholic Vote reports that the Diocese of Buffalo's bankruptcy case
involving child sex abuse claims has reached a standstill,
prompting Chief Judge Carl Bucki to consider appointing a third
mediator to break the deadlock.
According to the report, the case, ongoing for nearly five years,
has faced persistent disputes among the Diocese, victims, and
insurance companies, hindering progress, according to WGRZ, a
Buffalo NBC affiliate.
During a December 11, 2024 hearing, retired State Supreme Court and
Appellate Court Justice Patrick H. NeMoyer, who has been serving as
a second mediator, recommended the addition of a third mediator to
expedite a resolution. While noting "good faith" negotiations
between the parties, NeMoyer stressed the importance of setting a
deadline. He proposed that the Diocese submit a draft settlement
negotiated with survivors within six months, the report states.
At the hearing, Stephen Donato, the Diocese's attorney, stated the
Diocese could provide $100 million in restitution, a figure that
concerned Bucki due to the Diocese's financial limitations and
recent church closures. Donato clarified that the closures resulted
from declining congregations, not the Diocese's 2020 bankruptcy
filing. He added that parishes would be expected to contribute
significantly to the restitution, according to Catholic Vote.
Steve Boyd, an attorney for the victims, expressed cautious
optimism, saying, "There seems to be a willingness by all sides to
return to mediation, and hopefully, that will lead to positive
outcomes for everyone."
Judge Bucki is expected to decide on appointing a third mediator in
the coming weeks, WGRZ reported.
About The Diocese of Buffalo N.Y.
The Diocese of Buffalo, N.Y., is home to nearly 600,000 Catholics
in eight counties in Western New York. The territory of the diocese
is co-extensive with the counties of Erie, Niagara, Genesee,
Orleans, Chautauqua, Wyoming, Cattaraugus, and Allegany in New York
State, comprising 161 parishes. There are 144 diocesan priests and
84 religious priests who reside in the Diocese.
The diocese through its central administrative offices (a) provides
operational support to the Catholic parishes, schools, and certain
other Catholic entities that operate within the territory of the
Diocese "OCE"; (b) conducts school operations through which it
provides parish schools with financial and educational support; (c)
provides comprehensive risk management services to the OCEs; (d)
administers a lay pension trust and a priest pension trust for the
benefit of certain employees and priests of the OCEs; and (e)
provides administrative support for St. Joseph Investment Fund,
Inc.
Dealing with sexual abuse claims, the Diocese of Buffalo sought
Chapter 11 protection (Bankr. W.D.N.Y. Case No. 20-10322) on Feb.
28, 2020. The diocese was estimated to have $10 million to $50
million in assets and $50 million to $100 million in liabilities as
of the bankruptcy filing.
The Honorable Carl L. Bucki is the case judge.
Bond, Schoeneck & King, PLLC, led by Stephen A. Donato, Esq., is
the diocese's counsel; Connors LLP and Lippes Mathias Wexler
Friedman LLP are its special litigation counsel; and Phoenix
Management Services, LLC is its financial advisor. Stretto is the
claims agent, maintaining the page:
https://case.stretto.com/dioceseofbuffalo/docket
The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors on March 12, 2020. The committee tapped Pachulski Stang
Ziehl & Jones, LLP and Gleichenhaus, Marchese & Weishaar, PC as
bankruptcy counsel, and Burns Bair LLP as special insurance
counsel.
BULLETPROOF DOG: Gets Interim OK to Use Cash Collateral
-------------------------------------------------------
Bulletproof Dog Training, LLC and its affiliates received fifth
interim approval from the U.S. Bankruptcy Court for the Middle
District of Florida to use its secured creditors' cash collateral.
The interim order signed by Judge Jason Burgess approved the use of
cash collateral for payments of operational expenses, Subchapter V
trustee fees, and other necessary costs outlined in the company's
projected budget.
Creditors with pre-bankruptcy security interests in cash collateral
were granted replacement liens with the same validity and priority
as their pre-bankruptcy liens, subject to valuation and potential
adjustment.
The next hearing is scheduled for Jan. 8, 2025.
About Bulletproof Dog Training
Bulletproof Dog Training, LLC and its affiliates sought relief
under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code
(Bankr. M.D. Fla. Lead Case No. 24-01700) on June 14, 2024. In the
petitions signed by its manager, William Thomas, Bulletproof Dog
Training disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge Jason A. Burgess oversees the cases.
Daniel Fogarty, Esq., at Stichter, Riedel, Blain & Postler, P.A.
serves as the Debtors' legal counsel.
BUTLER, PA: S&P Affirms 'BB' Rating on 2015B GO Bonds
-----------------------------------------------------
S&P Global Ratings revised its outlook to positive from stable and
affirmed its 'BB' underlying rating on Butler, Pa.'s series 2015B
general obligation (GO) bonds.
"The outlook revision reflects our view that Butler's liquidity
challenges could be remediated given the over $90 million proceeds
received from the sale of the Butler Area Sewer Authority (BASA)
wastewater system," said S&P Global Ratings credit analyst Moreen
Skyers-Gibbs. It also reflects the application of our "Methodology
for Rating U.S. Governments," published Sept. 9, 2024, on
RatingsDirect.
A pledge of the city's full faith, credit, and taxing power,
including unlimited ad valorem property taxes, secures the GO
bonds.
"The positive outlook reflects our views that there is a
one-in-three chance that we could raise the rating over the next
year if Butler's liquidity improves given the BASA sale and
management's plans to use the interest that will be generated from
the corpus to close its budget gap," added Ms. Skyers-Gibbs.
C-BOND SYSTEMS Reports $647,213 Net Loss in Fiscal Q3
-----------------------------------------------------
C-Bond Systems, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $647,213 attributable to common shareholders on $659,881 of
revenue for the three months ended September 30, 2024, compared to
a net loss of $206,208 attributable to common shareholders on
$813,951 of revenue for the three months ended September 30, 2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $1,242,645 attributable to common shareholders on
$2,460,218 of revenue, compared to a net income of $2,853,035
attributable to common shareholders on $1,743,226 of revenue for
the same period in 2023.
As of September 30, 2024, the Company had $1,418,414 in total
assets, $4,255,200 in total liabilities, $2,032,224 in and
$4,869,010 in total stockholders' deficit.
Additionally, as of September 30, 2024, the Company had an
accumulated deficit, shareholders' deficit, and working capital
deficit of $62,094,359, $4,869,010 and $1,786,279, respectively. On
September 30, 2024, the Company had cash of $21,673. These factors
raise substantial doubt about the Company's ability to continue as
a going concern for a period of twelve months from the issuance
date of this report. Management cannot provide assurance that the
Company will ultimately achieve profitable operations or become
cash flow positive or raise additional debt and/or equity capital.
The Company is seeking to raise capital through additional debt
and/or equity financings to fund its operations in the future.
Although the Company has historically raised capital from sales of
common shares and preferred shares, and from the issuance of
promissory notes and convertible promissory notes, there is no
assurance that it will be able to continue to do so. If the Company
is unable to raise additional capital or secure additional lending
in the near future, management expects that the Company will need
to curtail its operations.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/2tc4v6ff
About C-Bond Systems Inc.
San Antonio, Texas-based C-Bond Systems, Inc. is a nanotechnology
company and the sole owner and developer of the patented C-Bond
technology. The Company focuses on the implementation of
proprietary nanotechnology applications and processes to enhance
the strength, functionality, and sustainability of brittle material
systems.
Boca Raton, Fla.-based Salberg & Company, P.A., the Company's
auditor since 2017, issued a "going concern" qualification in its
report dated April 1, 2024, noting that the Company had cash used
in operations of $1,602,218 in 2023, and a working capital deficit,
shareholders' deficit, and accumulated deficit of $1,351,954,
$4,324,535, and $60,851,714, respectively, as of December 31, 2023.
These matters raise substantial doubt about the Company's ability
to continue as a going concern.
CAN BROTHERS: Gets Interim OK to Use $498,396 in Cash Collateral
----------------------------------------------------------------
CAN Brothers Construction, Inc. received interim approval from the
U.S. Bankruptcy Court for the District of New Hampshire for
authority to use up to $498,396.86 in cash collateral.
The Debtor requires the use of cash collateral to pay post-petition
costs and expenses and make adequate protection payments during the
period from Jan. 1 to Feb. 28, 2025.
Bank of New Hampshire holds a blanket lien in first priority
position on the Debtor's collateral in the remaining amount of
$101,706. The Debtor sold a piece of equipment with court approval
and paid the sale proceeds of $110,000 to the bank reducing the
amount of its secured lien. Meanwhile, the Debtor believes that the
U.S. Small Business Association holds a similar secured position on
its collateral in the form of an EIDL loan in the amount of
$523,000.
Bank of New Hampshire and the SBA will be provided with adequate
protection for any loss or diminution in value of their cash
collateral in the form of a replacement lien in, to and on the
Debtor's post-petition property.
Beginning on April 1, 2024, and continuing, the Debtor has made and
will continue to make monthly adequate protection payments in the
amount of $1,650 to Bank of New Hampshire and beginning on May 1,
2024, and continuing, $2,500 to the SBA on or before the last day
of each month.
The next hearing is set for Feb. 21. Objections are due by Feb.
14.
About CAN Brothers Construction
CAN Brothers Construction, Inc., is a New Hampshire Corporation
with the principal place of business located at 120 Ridge Road,
Middleton, New Hampshire 03887.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.H. Case No. 24-10115) on February 26,
2024. In the petition signed by Charles W. Therriault, Jr.,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge Bruce A Harwood oversees the case.
Eleanor Wm. Dahar, Esq., at Victor W. Dahar Professional
Association, represents the Debtor as legal counsel.
CANDE HOFFMAN: Gets Final OK to Use Cash Collateral
---------------------------------------------------
CandE Hoffman Holdings Inc. received final approval from the U.S.
Bankruptcy Court for the Eastern District of Wisconsin to use cash
collateral.
The final order signed by Judge Beth Hanan authorized the company
to use its secured creditors' cash collateral to pay its operating
expenses.
Secured creditors were granted replacement liens on the cash
collateral with the same priority as their pre-bankruptcy liens.
The liens of creditors with an interest in cash collateral pursuant
to any security agreements will extend to the collateral under the
replacement lien, and the products and proceeds thereof under
Bankruptcy Code Section 552(b).
CandE was ordered to maintain property and liability insurance
consistent with its coverage before its Chapter 11 filing.
About CandE Hoffman Holdings
CandE Hoffman Holdings Inc. -- https://www.candehoffman.org/ -- is
a franchise owner of hair salons.
CandE filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Wis. Case No. 24-25415) on October 11,
2024. Eric J. Hoffman, president of CandE, signed the petition.
The Debtor reported total assets of $710,919 and total liabilities
of $1,090,460 as of August 21, 2024.
Judge Beth E. Hanan handles the case.
The Debtor is represented by Jerome R. Kerkman, Esq., at Kerkman &
Dunn.
CAPSTONE COMPANIES: Posts $95,537 Net Loss in Fiscal Q3
-------------------------------------------------------
Capstone Companies, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $95,537 with no reported net revenue for the three
months ended September 30, 2024, compared to a net loss of $423,598
on $63,771 of net revenue for the three months ended September 30,
2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $481,807 on $143,268 of net revenue, compared to a
net loss of $1,214,375 on $95,968 of net revenue for the same
period in 2023.
As of September 30, 2024, the Company had $1,378,848 in total
assets, $4,102,475 in total liabilities, and $2,723,627 in total
stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/4vcr3rmu
About Capstone Companies Inc.
Deerfield Beach, Fla.-based Capstone Companies, Inc. is a public
holding company organized under the laws of the State of Florida.
The Company is a designer, manufacturer and marketer of consumer
products that are designed to simplify daily living through
technology.
Margate, Fla.-based Assurance Dimensions, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has incurred
recurring operating losses, has incurred negative cash flows from
operations and has an accumulated deficit. These and other factors
raise substantial doubt about the Company's ability to continue as
a going concern.
CAREPOINT HEALTH: U.S. Trustee Appoints David Crapo as PCO
----------------------------------------------------------
Andrew Vara, the U.S. Trustee for Regions 3 and 9, appointed David
Crapo as patient care ombudsman for CarePoint Health Systems, Inc.
and affiliates.
The appointment was made pursuant to the order from the U.S.
Bankruptcy Court for the District of Delaware on November 20.
Section 333 of the Bankruptcy Code provides that the Patient Care
Ombudsman shall:
* 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;
* 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; and
* maintain any information obtained by such ombudsman under
Section 333 of the Bankruptcy Code that relates to patients
(including information relating to patient records) as confidential
information. Such ombudsman may not review confidential patient
records unless the court approves such review in advance and
imposes restrictions on such ombudsman to protect the
confidentiality of such records.
To the best of his knowledge, Mr. Crapo has no connections with the
Debtor, creditors, any other parties in interest, their respective
attorneys and accountants, the U.S. Trustee, and persons employed
in the Office of the U.S. Trustee, except as set forth in his
verified statement.
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.
CARETRUST REIT: S&P Upgrades ICR to 'BB+', Outlook Stable
---------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on CareTrust
REIT Inc. to 'BB+' from 'BB'. The outlook is stable. At the same
time, S&P raised its issue-level rating on the company's unsecured
notes to 'BBB-' from 'BB+'.
S&P said, "The stable outlook reflects our expectation that
CareTrust will grow its portfolio using a combination of free cash
flow, equity, and debt, while maintaining a conservative balance
sheet. We expect continued cash flow stability despite potential
tenant hardships or restructurings. We project S&P Global
Ratings-adjusted debt to EBITDA will increase from historically low
levels but remain well below 4x over the next 12 months.
"We expect CareTrust will continue to expand its portfolio and
capitalize on its advantageous cost of capital." The company
increased its scale materially in 2024, completing over $1.3
billion of investments year-to-date funded with approximately $1.5
billion of equity. Through the end of the third quarter,
CareTrust's gross assets and number of properties have increased
substantially, to $3.4 billion from $2.5 billion and to 326 from
207, respectively.
The company's strong recent growth will likely facilitate future
expansion as a lot of the investment activity was with new
operators. This has also reduced the company's tenant
concentration, which remains high, to 32.2% and 13.9% to its top
two tenants from 33.6% and 15.4%, respectively, at year-end 2023.
S&P expects CareTrust to continue to grow its portfolio
aggressively as long as its share price continues to trade at a
significant premium to net asset value. Given the company's very
low leverage and limited debt levels, S&P projects the company will
also use debt to fund some of its future investments.
S&P said, "We expect the company's operating performance will
remain solid, supported by strong secular tailwinds. The company
spent a large part of 2022 and 2023 working through operator
transitions and asset sales due to the detrimental effects that the
COVID-19 pandemic had on its operators but has exhibited limited
operator disruption thus far in 2024. Tenant lease coverage levels
remain solid, buoyed by the strength of its largest tenant, The
Ensign Group, with trailing-12-month (TTM) earnings before
interest, taxes, depreciation, amortization, rent, and management
fees (EBITDARM) coverage of 4.18x as of June 30, 2024. We expect a
modest improvement in occupancy and coverage levels over the next
12 months with rent collections remaining strong and limited tenant
issues.
"One of the company's largest tenants, PACS Group, is under federal
investigation regarding its reimbursement and referral practices.
Under a worst-case scenario, we expect CareTrust to be able to
re-tenant facilities with limited impact to long-term cash flows.
We believe that CareTrust's strong balance sheet is well positioned
to sustain any potential fallout.
"Our medium- to long-term view on the skilled nursing sector
remains positive. CareTrust and its operators should benefit from
favorable long-term demographic trends given the aging U.S.
population that accounts for the majority of health care spending
in the U.S. Furthermore, the supply and demand landscape is
favorable to property owners as there has been no net new supply in
the skilled nursing space for several years (in fact, there has
been a decline in patient beds). Government reimbursement risk
remains, as skilled nursing facilities (SNFs) generate most of its
revenues from government reimbursement programs, though state and
federal level support has been positive in recent years.
"We expect CareTrust will maintain a conservative balance sheet and
strong key credit protection metrics. As of Sept. 30, 2024, the
company's S&P Global Ratings-adjusted debt to EBITDA was 1.7x, an
improvement from 3.2x a year prior, due largely to its
equity-funded investment activity. Given our assessment of its
business risk profile as weak, we do not net the company's cash
against its debt when calculating the metric. We expect the company
to use a more balanced mix of equity and debt to fund its growth
going forward and for leverage to increase over the next couple of
years to a level that's closer to its stated financial policy of
4x-5x."
CareTrust's S&P Global Ratings-adjusted fixed-charge coverage (FCC)
is strong at over 7x. Following the repayment of its term loan
during the third quarter, its next maturity isn't until 2027 when
its revolver matures. S&P said, "While refinancing needs are
limited, we expect an increased use of debt-funded investment
activity to result in a modest decline to its FCC ratio over the
next two years. That said, given CareTrust's consistently strong
key credit protection metrics and our expectation that it will
continue to maintain a conservative balance sheet, we revised our
financial risk profile to modest from intermediate."
S&P said, "The stable outlook reflects our expectation that
CareTrust will grow its portfolio using a combination of free cash
flow, equity, and debt, while maintaining a conservative balance
sheet. The outlook also reflects our expectation for continued cash
flow stability despite potential tenant hardships or
restructurings. We project S&P Global Ratings-adjusted debt to
EBITDA will increase from historically low levels but remain well
below 4x over the next 12 months."
S&P would consider lowering its rating on CareTrust if:
-- It pursues large debt-financed acquisitions that cause it to
operate outside of its financial policy with S&P Global
Ratings-adjusted debt to EBITDA rising well above 4.5x for a
sustained period; or
-- Its operating results deteriorate significantly with a surge in
lease restructurings or operator transitions; or
-- Tenant concentration increases meaningfully or rent coverage
levels for its top tenants decline materially.
While unlikely over the next two years, S&P would consider raising
our rating if it:
-- Significantly increases its scale, diversifies its asset mix to
other health care facility types less reliant on government
reimbursement risk, and further reduces its exposure to its top
tenants; and
-- Commits to a more conservative financial policy with its S&P
Global Ratings-adjusted debt to EBITDA sustained below 3.5x.
CAREVIEW COMMUNICATIONS: Reports $1.5 Million Net Loss in Fiscal Q3
-------------------------------------------------------------------
CareView Communications, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $1,470,655 on $1,932,382 of total revenues for the
three months ended September 30, 2024, compared to a net loss of
$869,901 on $2,425,390 of total revenues for the three months ended
September 30, 2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $3,600,152 on $6,109,259 of total revenues, compared
to a net loss of $2,261,520 on $7,917,758 of total revenues for the
same period in 2023. As of September 30, 2024, the Company had a
working capital deficit of $40,269,985.
As of September 30, 2024, the Company had $4,147,549 in total
assets, $43,639,984 in total liabilities, and $39,492,435 in total
stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/2xn3e9ka
About CareView Communications
Headquartered in Lewisville, Texas, CareView Communications, Inc.
-- http://www.care-view.com-- is a provider of products and
on-demand application services for the healthcare industry,
specializing in bedside video monitoring, software tools to improve
hospital communications and operations, and patient education and
entertainment packages.
Somerset, New Jersey-based Rosenberg Rich Baker Berman & Co., the
Company's auditor since 2022, issued a "going concern"
qualification in its report dated March 27, 2024, citing that the
Company outlines the net losses, cash outflows, and working capital
deficit that raise substantial doubt about its ability to continue
as a going concern.
CARVANA CO: CAS Investment, Clifford Sosin Hold 5% Class A Shares
-----------------------------------------------------------------
CAS Investment Partners, LLC and Clifford Sosin disclosed in
Schedule 13G/A Report filed with the U.S. Securities and Exchange
Commission that they beneficially owned 6,453,594 shares of Carvana
Co.'s Class A Common Stock, representing 5% of the 128,510,301
shares outstanding as of October 28, 2024, as set forth in the
Company's most recent Form 10-Q, filed October 30, 2024.
As of September 30, 2024, Sosin Master, L.P. owned 3,901,594 shares
of Common Stock of the Company and CSWR Partners, L.P. owned
2,552,000 shares of Common Stock of the Company. CAS Investment
Partners, LLC is the investment manager of Sosin Master and CSWR
and has been fully delegated the power to vote and dispose or
direct the disposition of all the shares of Common Stock owned by
Sosin Master and CSWR. Clifford Sosin is the Managing Member of CAS
Investment Partners, LLC.
A full-text copy of CAS Investment Partners' SEC Report is
available at:
https://tinyurl.com/2tvw7p8w
About Carvana
Carvana's mission is to change the way people buy and sell cars.
Over the past decade, Carvana has revolutionized automotive retail
and delighted millions of customers with an offering that is fun,
fast, and fair. With Carvana, customers can choose from tens of
thousands of vehicles, get financing, trade-in, and complete a
purchase entirely online with the convenience of home delivery or
local pick up in over 300 U.S. markets.
Carvana reported a net income of $150 million for the year ended
Dec. 31, 2023, compared to a net loss of $2.89 billion for the year
ended Dec. 31, 2022. As of Sept. 30, 2024, Carvana had $7.37
billion in total assets, $7.08 billion in total liabilities, and
$286 million in total stockholders' equity.
* * *
As reported by the TCR on Sept. 17, 2024, Moody's Ratings upgraded
Carvana Co.'s corporate family rating to Caa1 from Caa3 and
probability of default rating to Caa1-PD from Caa3-PD. Moody's said
the upgrade and positive outlook reflects Carvana's better
operating performance which has resulted in a material improvement
in leverage.
CARVANA CO: Jane Street Entities Lower Stake to 2.6%
----------------------------------------------------
Jane Street Group, LLC disclosed in a Schedule 13G/A filed with the
U.S. Securities and Exchange Commission that as of September 30,
2024, the firm and its affiliated entities -- Jane Street Capital,
LLC, Jane Street Global Trading, LLC and Jane Street Options, LLC
-- beneficially owned 2,018,245 shares of Carvana Co.'s Common
Stock, representing 2.6% of the shares outstanding.
A full-text copy of Jane Street's SEC Report is available at:
https://tinyurl.com/58xz89v6
About Carvana
Carvana's mission is to change the way people buy and sell cars.
Over the past decade, Carvana has revolutionized automotive retail
and delighted millions of customers with an offering that is fun,
fast, and fair. With Carvana, customers can choose from tens of
thousands of vehicles, get financing, trade-in, and complete a
purchase entirely online with the convenience of home delivery or
local pick up in over 300 U.S. markets.
Carvana reported a net income of $150 million for the year ended
Dec. 31, 2023, compared to a net loss of $2.89 billion for the year
ended Dec. 31, 2022. As of Sept. 30, 2024, Carvana had $7.37
billion in total assets, $7.08 billion in total liabilities, and
$286 million in total stockholders' equity.
* * *
As reported by the TCR on Sept. 17, 2024, Moody's Ratings upgraded
Carvana Co.'s corporate family rating to Caa1 from Caa3 and
probability of default rating to Caa1-PD from Caa3-PD. Moody's said
the upgrade and positive outlook reflects Carvana's better
operating performance which has resulted in a material improvement
in leverage.
CARVANA CO: Spruce House Investment Management Holds 3.9% Stake
---------------------------------------------------------------
Spruce House Investment Management LLC disclosed in a Schedule
13G/A filed with the U.S. Securities and Exchange Commission that
as of September 30, 2024, the firm and its affiliated entities --
Spruce House Capital LLC, The Spruce House Partnership LLC, The
Spruce House Partnership (AI) LP, The Spruce House Partnership (QP)
LP, Zachary Sternberg, and Benjamin Stein -- beneficially owned
shares of Carvana Co.'s Class A Common Stock.
(a) Amount beneficially owned:
-- Spruce House Investment Management LLC – 5,000,000
shares
-- Spruce House Capital LLC – 5,000,000 shares
-- The Spruce House Partnership LLC – 5,000,000 shares
-- The Spruce House Partnership (AI) LP – 5,000,000 shares
-- The Spruce House Partnership (QP) LP – 5,000,000 shares
-- Zachary Sternberg – 5,085,000 shares
-- Benjamin Stein – 5,077,100 shares
(b) Percent of class:
-- Spruce House Investment Management LLC – 3.9%*
-- Spruce House Capital LLC – 3.9%*
-- The Spruce House Partnership LLC – 3.9%*
-- The Spruce House Partnership (AI) LP – 3.9%*
-- The Spruce House Partnership (QP) LP – 3.9%*
-- Zachary Sternberg – 4%*
-- Benjamin Stein – 4%*
The reported securities are held in the account of The Spruce House
Partnership LLC, its sole members being The Spruce House
Partnership (AI) LP (f/k/a The Spruce House Partnership LP) and The
Spruce House Partnership (QP) LP, each a private investment fund
managed by Spruce House Investment Management LLC.
The reported securities may be deemed to be beneficially owned by
the Investment Manager, the general partner of the Funds, Spruce
House Capital LLC, and by Zachary Sternberg and Benjamin Stein,
managing members of the Investment Manager and the General
Partner.
By virtue of these relationships, the Reporting Persons may be
deemed to have shared voting and dispositive power with respect to
the Shares owned directly by the Aggregator. This report shall not
be deemed an admission that the Reporting Persons are beneficial
owners of the Shares for purposes of Section 13 of the Securities
Exchange Act of 1934, as amended, or for any other purpose. Each of
the Reporting Persons disclaims beneficial ownership of the Shares
reported herein except to the extent of the Reporting Person's
pecuniary interest therein.
The percentages are calculated based upon a statement in the
Company's Quarterly Report on Form 10-Q filed on October 30, 2024,
for the quarter ended September 30, 2024 that there were
128,510,301 shares of Class A Common Stock issued and outstanding
as of October 28, 2024.
Spruce House Investment Management may be reached at:
Zachary Sternberg
Benjamin Stein
c/o Spruce House Investment Management LLC
435 Hudson Street, 8th Floor
New York, New York 10014
Tel: 646-442-6727
A full-text copy of the SEC Report is available at:
https://tinyurl.com/bdctxem6
About Carvana
Carvana's mission is to change the way people buy and sell cars.
Over the past decade, Carvana has revolutionized automotive retail
and delighted millions of customers with an offering that is fun,
fast, and fair. With Carvana, customers can choose from tens of
thousands of vehicles, get financing, trade-in, and complete a
purchase entirely online with the convenience of home delivery or
local pick up in over 300 U.S. markets.
Carvana reported a net income of $150 million for the year ended
Dec. 31, 2023, compared to a net loss of $2.89 billion for the year
ended Dec. 31, 2022. As of Sept. 30, 2024, Carvana had $7.37
billion in total assets, $7.08 billion in total liabilities, and
$286 million in total stockholders' equity.
* * *
As reported by the TCR on Sept. 17, 2024, Moody's Ratings upgraded
Carvana Co.'s corporate family rating to Caa1 from Caa3 and
probability of default rating to Caa1-PD from Caa3-PD. Moody's said
the upgrade and positive outlook reflects Carvana's better
operating performance which has resulted in a material improvement
in leverage.
CARVANA CO: T. Rowe Price Associates Holds 11.1% Equity Stake
-------------------------------------------------------------
T. Rowe Price Associates, Inc. disclosed in a Schedule 13G/A Report
filed with the U.S. Securities and Exchange Commission that as of
September 30, 2024, it beneficially owned 13,729,435 shares of
Carvana Co.'s Common Stock, representing 11.1% of the shares
outstanding.
T. Rowe Price Associates, Inc. may be reached at:
Ellen York, Vice President
100 E. Pratt Street
Baltimore, MD 21202
Tel: 410-345-2000
A full-text copy of T. Rowe Price Associates' SEC Report is
available at:
https://tinyurl.com/54tm5b82
About Carvana
Carvana's mission is to change the way people buy and sell cars.
Over the past decade, Carvana has revolutionized automotive retail
and delighted millions of customers with an offering that is fun,
fast, and fair. With Carvana, customers can choose from tens of
thousands of vehicles, get financing, trade-in, and complete a
purchase entirely online with the convenience of home delivery or
local pick up in over 300 U.S. markets.
Carvana reported a net income of $150 million for the year ended
Dec. 31, 2023, compared to a net loss of $2.89 billion for the year
ended Dec. 31, 2022. As of Sept. 30, 2024, Carvana had $7.37
billion in total assets, $7.08 billion in total liabilities, and
$286 million in total stockholders' equity.
* * *
As reported by the TCR on Sept. 17, 2024, Moody's Ratings upgraded
Carvana Co.'s corporate family rating to Caa1 from Caa3 and
probability of default rating to Caa1-PD from Caa3-PD. Moody's said
the upgrade and positive outlook reflects Carvana's better
operating performance which has resulted in a material improvement
in leverage.
CATHETER PRECISION: Armistice, Steven Boyd Hold 9.99% Stake
-----------------------------------------------------------
Armistice Capital, LLC and Steven Boyd disclosed in a Schedule
13G/A Report filed with the U.S. Securities and Exchange Commission
that as of September 30, 2024, they beneficially owned an aggregate
amount of 105,743 shares of Catheter Precision, Inc.'s Common
Stock, representing 9.99% of the shares outstanding.
Armistice Capital, LLC is the investment manager of Armistice
Capital Master Fund Ltd., the direct holder of the Shares, and
pursuant to an Investment Management Agreement, Armistice Capital
exercises voting and investment power over the securities of the
Company held by the Master Fund and thus may be deemed to
beneficially own the securities of the Company held by the Master
Fund. Mr. Boyd, as the managing member of Armistice Capital, may be
deemed to beneficially own the securities of the Company held by
the Master Fund. The Master Fund specifically disclaims beneficial
ownership of the securities of the Company directly held by it by
virtue of its inability to vote or dispose of such securities as a
result of its Investment Management Agreement with Armistice
Capital.
Armistice Capital, LLC may be reached at:
Steven Boyd
c/o Armistice Capital, LLC
510 Madison Avenue, 7th Floor
New York, New York 10022
United States of America
Tel: (212) 231-4932
A full-text copy of Armistice Capital's SEC Report is available
at:
https://tinyurl.com/zu8yrpnt
About Catheter Precision Inc.
Headquartered in the U.S., Catheter Precision, Inc. is a medical
device company focused on improving the treatment of cardiac
arrhythmias. The Company, which was reincorporated as Ra Medical
Systems, Inc. in Delaware in 2018 and changed its name to Catheter
Precision, Inc. on August 17, 2023, develops technology for
electrophysiology procedures through collaborations with physicians
and continuous product advancements.
East Brunswick, New Jersey-based WithumSmith+Brown, PC., the
Company's auditor since 2023, issued a "going concern"
qualification in its report dated March 29, 2024, citing recurring
operating losses and anticipated future losses that raise
substantial doubt about the Company's ability to continue as a
going concern.
For the year ended December 31, 2023, Catheter Precision reported a
net loss of $70.6 million, compared to a net loss of $26.9 million
for 2022. As of September 30, 2024, Catheter Precision had $26.7
million in total assets, $13.9 million in total liabilities, and
$12.8 million in total stockholders' equity.
CATHETER PRECISION: Reports $4.1 Million Net Loss in Fiscal Q3
--------------------------------------------------------------
Catheter Precision, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $4.1 million on $96,000 of revenues for the three
months ended September 30, 2024, compared to a net loss of $1.9
million on $133,000 of revenues for the three months ended
September 30, 2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $11 million on $271,000 of revenues, compared to a
net loss of $69.9 million on $314,000 of revenues for the same
period in 2023.
As of September 30, 2024, the Company had cash and cash equivalents
of approximately $1.3 million. For the nine months ended September
30, 2024, the Company used $6.4 million in cash for operating
activities. As of September 30, 2024, the Company had an
accumulated deficit of approximately $287 million.
As of September 30, 2024, the Company had $26.7 million in total
assets, $13.9 million in total liabilities, and $12.8 million in
total stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/y3h6f7yf
About Catheter Precision Inc.
Headquartered in the U.S., Catheter Precision, Inc. is a medical
device company focused on improving the treatment of cardiac
arrhythmias. The Company, which was reincorporated as Ra Medical
Systems, Inc. in Delaware in 2018 and changed its name to Catheter
Precision, Inc. on August 17, 2023, develops technology for
electrophysiology procedures through collaborations with physicians
and continuous product advancements.
East Brunswick, New Jersey-based WithumSmith+Brown, PC., the
Company's auditor since 2023, issued a "going concern"
qualification in its report dated March 29, 2024, citing recurring
operating losses and anticipated future losses that raise
substantial doubt about the Company's ability to continue as a
going concern.
For the year ended December 31, 2023, Catheter Precision reported a
net loss of $70.6 million, compared to a net loss of $26.9 million
for 2022. As of June 30, 2024, the Company had $26.3 million in
total assets, $11.9 million in total liabilities, and $14.3 million
in total stockholders' equity.
CEDAR TRUCKING: Seeks Chapter 11 Bankruptcy in West Virginia
------------------------------------------------------------
Clarissa Hawes of Freight Waves reports that a trucking company
based in Glasgow, West Virginia, Cedar Trucking Co., that hauls
coal, logs, and wood chips has filed for Chapter 11 bankruptcy.
It submitted its petition on December 10, 2024, in the U.S.
Bankruptcy Court for the Southern District of West Virginia,
seeking to reorganize. It reported assets between $500,000 and $1
million and liabilities ranging from $1 million to $10 million.
Cedar Trucking, which has up to 49 creditors, stated it expects to
have funds available for unsecured creditors after covering
administrative expenses.
Robert Keenan, the company's president, is representing Cedar
Trucking in the case without legal counsel. Efforts to contact him
for comment have been unsuccessful, the report states.
According to the Federal Motor Carrier Safety Administration
(FMCSA), Cedar Trucking employs 22 drivers and operates an equal
number of power units. The company secured its operating authority
in March 2020, and its liability insurance remains active.
While the company did not provide a specific reason for its
bankruptcy filing, Cedar Trucking listed several 2018 Peterbilt
tractors for sale on its Facebook page in October.
Its largest unsecured creditors include the West Virginia Tax
Division, owed nearly $1.1 million in payroll and other taxes; the
U.S. Department of Treasury, owed approximately $305,500; and
Workforce West Virginia, owed nearly $18,000 for unemployment
benefits.
FMCSA records show the company's trucks were inspected 39 times
over the past two years, with six placed out of service, resulting
in a 15.4% out-of-service rate -- below the national average of
22.3%. During the same period, Cedar Trucking's drivers were
inspected 47 times, with no out-of-service violations, compared to
the national average of 6.7%. The company's vehicles were involved
in one injury crash and one tow-away accident during this time.
U.S. Bankruptcy Judge B. McKay Mignault has directed Cedar Trucking
to file its schedules of assets, liabilities, and a statement of
financial affairs within 14 days of the Chapter 11 filing. The
company's small business reorganization plan and disclosure
statement are due by June 9, 2025. A creditors' meeting has not yet
been scheduled.
About Cedar Trucking Co.
Cedar Trucking Co. is a trucking company based in Glasgow, West
Virginia that hauls coal, logs, and wood chips.
Cedar Trucking Co. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. W. Va. Case No. 24-20275) on December
10, 2024. In its petition, the Debtor reports assets between
$500,000 and $1 million and liabilities ranging from $1 million to
$10 million.
Honorable Bankruptcy Judge B Mckay Mignault handles the case.
Robert Keenan, the company's president, is representing Cedar
Trucking in the case without legal counsel.
CHAMPIONS ONCOLOGY: West Elk Partners Holds 6.49% Equity Stake
--------------------------------------------------------------
West Elk Partners, LP disclosed in a Schedule 13G filed with the
U.S. Securities and Exchange Commission that as of September 30,
2024, the firm and its affiliated entities -- West Elk, LLC, West
Elk Capital, LLC, Jason Joffe, and Morgan Duke -- beneficially
owned 882,581 shares of Champions Oncology, Inc.'s common stock,
representing 6.49% of the outstanding Common Stock.
All of the reported shares are owned directly by West Elk Partners,
LP, whose general partner is West Elk, LLC and whose investment
adviser is West Elk Capital, LLC. The General Partner and the
Investment Adviser could each be deemed to be indirect beneficial
owners of the reported shares, and could be deemed to share such
beneficial ownership with West Elk Partners.
Jason Joffe and Morgan Duke are the managers of the General Partner
and Investment Adviser, and could be deemed to share such indirect
beneficial ownership with the General Partner, the Investment
Adviser, and West Elk Partners.
The reporting persons may be reached at:
Jason Joffe
Manager
1175 Peachtree Street NE
Suite 360
Atlanta, GA 30361
A full-text copy of West Elk Partners' SEC Report is available at:
https://tinyurl.com/3mmmewyn
About Champions Oncology
Hackensack, N.J.-based Champions Oncology, Inc. is a
technology-enabled research organization engaged in creating
technology solutions to be utilized in drug discovery and
development. Its research center operates in both regulatory and
non-regulatory environments and consists of a comprehensive set of
computational and experimental research platforms. Its
pharmacology, biomarker, and data platforms are designed to
facilitate drug discovery and development at lower costs and
increased speeds.
West Palm Beach, Fla.-based EisnerAmper LLP, the Company's auditor
since 2015, issued a "going concern" qualification in its report
dated July 16, 2024, citing that the Company has experienced net
losses and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going
concern.
Champions Oncology reported a net loss of $7.3 million for the year
ending April 30, 2024. As of April 30, 2024, the Company had $26.1
million in total assets, $28 million in total liabilities, and $1.9
million in total stockholders' deficiency.
CHARTER COMMUNICATIONS: Egan-Jones Retains BB Sr. Unsec. Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on November 15, 2024, maintained its
'BB' foreign currency and local currency senior unsecured ratings
on debt issued by Charter Communications, Inc. EJR also withdrew
the rating on commercial paper issued by the Company.
Headquartered in Stamford, Connecticut, Charter Communications,
Inc. operates cable television systems in the United States.
CHERRY & CANDLEWOOD: Files Chapter 11 Bankruptcy in California
--------------------------------------------------------------
On December 3, 2024, Cherry & Candlewood Inc. filed Chapter 11
protection in the Central District of California. According to
court documents, the Debtor reports between $1 million and $10
million in debt owed to 1 and 49 creditors. The petition states
that funds will be available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on December 30,
2024 at 9:00 AM at UST-LA2, TELEPHONIC MEETING. CONFERENCE
LINE:1-866-816-0394, PARTICIPANT CODE:5282999.
About Cherry & Candlewood Inc.
Cherry & Candlewood Inc., doing business as Aamco Transmission, is
an American transmission-repair franchise founded by Robert Morgan
and Anthony A. Martino in 1957 in Philadelphia.
Cherry & Candlewood Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
24-19874) on December 3, 2024. In the petition filed by Michael J.
Long, as CEO, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
Honorable Bankruptcy Judge Barry Russell handles the case.
The Debtor is represented by:
Summer Shaw, Esq.
SHAW & HANOVER, PC
44-901 Village Court, Suite B
Palm Desert, CA 92260
Tel: (760) 610-0000
Fax: (760) 687-2800
E-mail: ss@shaw.law
CHIC COUTURE: Gets Final Approval to Use Cash Collateral
--------------------------------------------------------
Chic Couture Online, LLC received final approval from the U.S.
Bankruptcy Court for the Southern District of Florida, Fort
Lauderdale Division to use cash collateral of Delta Bridge Funding,
a secured creditor, to maintain its business operations.
The debtor is authorized to use cash collateral under a
court-approved budget. Funds for professional fees will be reserved
but not disbursed without court approval.
Delta has a lien on all of Chic Couture's assets including
accounts, receivables, fixtures and equipment, and has the priority
over all other creditors.
As protection, Delta was granted a replacement lien on Chic
Couture's post-petition assets. In case there is diminution in the
value of its cash collateral in an amount in excess of the value of
the replacement liens, Delta will be granted an administrative
claim, with priority over all other administrative expense claims.
In addition, Delta will receive a monthly payment of $3,000.
About Chic Couture Online
Chic Couture Online, LLC, a company in Lauderdale Lakes, Fla., owns
and operates an online retail shop specializing in women's clothing
and accessories.
Chic Couture Online sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-20940) on October 22,
2024, with $100,001 to $500,000 in assets and $1 million to $10
million in liabilities. Johane Porsenna, president of Chic Couture
Online, signed the petition.
Judge Peter D. Russin oversees the case.
Brian K. McMahon, Esq., at Brian K. McMahon, PA, represents the
Debtor as legal counsel.
CINEMARK HOLDINGS: Egan-Jones Hikes Sr. Unsecured Ratings to CCC+
-----------------------------------------------------------------
Egan-Jones Ratings Company on November 11, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Cinemark Holdings, Inc. to CCC+ from CCC. EJR also
withdrew the rating on commercial paper issued by the Company.
Headquartered in Plano, Texas, Cinemark Holdings, Inc. operates as
a movie theater.
CNX RESOURCES: Egan-Jones Retains BB- Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on November 7, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by CNX Resources Corporation. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Canonsburg, Pennsylvania, CNX Resources
Corporation operates as a natural gas exploration and production
company.
COASTAL GROWERS: Gets OK to Use Cash Collateral Until Jan. 7
------------------------------------------------------------
Coastal Growers, LLC received interim approval from the U.S.
Bankruptcy Court for the Southern District of Alabama to use cash
collateral until Jan. 7 next year.
The company requires the use of cash collateral, including cash,
deposit accounts, accounts receivable and proceeds from business
operations, to fund its operating expenses.
Hancock Whitney Bank and other secured creditors assert an interest
in the cash collateral.
As adequate protection, these secured creditors were granted
replacement liens in and upon all of the categories and types of
collateral in which they held a security interest and lien as of
the petition date; and a lien on receivables generated
post-petition but only to the extent of the company's actual use of
cash collateral.
The next hearing is scheduled for Jan. 7 next year.
Coastal Growers' financial problems are the result of, among other
things, the negative impacts of operational mismanagement by prior
management, inflation, and the high interest rates that have
generally plagued the economy.
In February of 2024, HWB, as agent under a revolving loan, declared
a default due to the borrower's overstatement of the borrowing base
leading to an overdraw under the revolving loan. The parties were
under a forbearance agreement that expired on Nov. 30.
Coastal Growers borrowed $55 million under the revolving loan. The
current balance of the revolving loan is approximately $16 million.
Coastal Growers guaranteed the direct loan of a subsidiary in the
original principal sum of $16.775 million.
The company obtained a source loan in the original principal sum of
a $40 million together with a subsequent protective advance in the
sum of $2 million.
About Coastal Growers LLC
Coastal Growers LLC is a company that helps peanut farmers achieve
higher returns by sharing in farming and shelling profits and
operates a shelling facility in Atmore. Since its launch in 2021,
the facility has served as a key center for peanut shelling,
storage, and shipping, contributing to regional agricultural growth
and economic development, the report relays.
Coastal Growers LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ala. Case No. 24-13034) on November
27, 2024. In the petition filed by Holly Johnson, as chief
financial officer, the Debtor reports estimated assets between $10
million and $50 million and estimated liabilities between $100
million and $500 million.
The case is before Honorable Bankruptcy Judge Henry A. Callaway.
Edward J. Peterson, Esq., at Johnson Pope Bokor Ruppel and Burns,
LLP represents the Debtor.
COMMSCOPE HOLDING: FPR Partners Holds 6.2% Equity Stake
-------------------------------------------------------
FPR Partners, LLC disclosed in a Schedule 13G/A filed with the U.S.
Securities and Exchange Commission that as of September 30, 2024,
the firm and its affiliated entities, FPR Partners, LP, Andrew
Raab, and Bob Peck, beneficially owned shares of CommScope Holding
Company, Inc.'s common stock:
FPR Partners, LLC, Andrew Raab, and Bob Peck are reported to
beneficially own 13,355,407 shares, representing 6.2% of the shares
outstanding as of July 26, 2024, as reported by the Company on Form
10-Q for the quarterly period ending June 30, 2024. Meanwhile, FPR
Partners, LP is reported to beneficially own 7,944,933 shares,
representing 3.7% of the shares outstanding.
FPR acts as investment manager to the Funds and may be deemed to
indirectly beneficially own securities owned by the Funds. Andrew
Raab and Bob Peck are the Senior Managing Members of FPR and may be
deemed to indirectly beneficially own securities owned by FPR and
the Funds.
A full-text copy of FPR Partners' SEC Report is available at
https://tinyurl.com/3p9ya7wt
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.
CONTAINER STORE: Preps Up Chapter 11 Bankruptcy Filing
------------------------------------------------------
Reshmi Basu, Eliza Ronalds-Hannon, and Jill R. Shah of Bloomberg
News report that the Container Store Group Inc. is expected to file
for bankruptcy in the coming weeks due to growing financial losses
and worsening liquidity problems, according to sources familiar
with the matter.
The storage and organization retailer plans to pursue Chapter 11
bankruptcy, with a strategy for lenders to assume control of the
company, the sources said, requesting anonymity as the discussions
are private.
In a regulatory filing last November 2024, the company revealed it
was in advanced talks with lenders to secure additional funding to
improve its earnings and growth, the report states.
About The Container Store Group Inc.
The Container Store Group, Inc. is a holding company, of which a
majority stake was purchased by Leonard Green and Pa that operates
a specialty retail chain company that operates "The Container
Store," which offers storage and organization products, and custom
closets.
CORETEC GROUP: CEO Seon Kee Kim Resigns; Executive Team Reshuffled
------------------------------------------------------------------
The Coretec Group disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that Dr. Seon Kee Kim
resigned as the Chief Executive Officer of the Company effective
November 6, 2024, but remains on the board of directors as its
co-chairman and as a director. Effective November 6, 2024, the
following persons comprise the new board of directors of the
Company, and the executive officers:
Name Title(s)
Elbert Michael Ussery Co-Chairman, Director, Chief Executive
Officer
Dr. Seon Kee Kim* Co-Chairman, Director
Ho Seok (Roberto) Kim* Chief Financial Officer
David Lee* Director
Victor Keen* Director
Robert McCollar Director
Birge Watkins Director
Jung Min Lee Director, Chief Operating Officer
* previously appointed
Elbert Michael Ussery, age 73, will serve as the Chief Executive
Officer and Co-Chairman of the Board, effective November 6, 2024.
Mr. Ussery a former U.S. Ambassador to Morocco, has played a
pivotal role in driving investments and development projects across
diverse regions including Eastern Europe, Central Asia, Africa, and
the Americas. He founded several businesses and non-profits,
serving on boards and providing strategic advice globally. In 2018,
he was appointed "Senior Advisor" by the State Department to aid in
establishing the Conflicts and Stabilization Operations Bureau. Mr.
Ussery has been leading the Advisory Board of Cal Erin Group since
2009 and is a long-standing board member of Safi Apparel and Corium
Distribution UK, among others. He also supports non-profit
initiatives like Corps Africa and the International Stability &
Operations Association. His previous roles include board positions
at Terocelo, Advantiv Solutions, and D'Sal Inc., and advisory
capacities for San Leon Energy and General Dynamics. Notably, he
co-founded the Romania Moldova Direct Fund in 1998, revitalizing
distressed companies in the region. Mr. Ussery's contributions
extend to educational and economic development, including
leadership roles in CAUA and the Vint Hill Economic Development
Authority. Appointed by President Reagan as U.S. Ambassador to
Morocco in 1988, he has also served in various capacities within
the U.S. Department of State and began his career in Washington,
D.C. Mr. Ussery graduated from Newberry College.
Robert Wallace McCollar, age 61, will assume the role of Director
on the Board, effective November 6, 2024. Mr. McCollar brings over
30 years of executive experience in law, business development, and
government service. With a Juris Doctor from William Mitchell Law
School and a Bachelor's from Trinity University, he's spent eight
years driving international investment into Loudoun County,
Virginia, contributing millions annually to the local and national
economy. Mr. McCollar has a strong background in working with
European firms and the UK government from his time in London and
has held roles at several companies such as Giesecke Devrient and
America Online.
Birge Watkins, age 75, will assume the role of Director on the
Board, effective November 6, 2024. Mr. Watkins brings many years of
experience, and has held diverse leadership roles across business,
government, and non-profits, currently chairing advising Landmark
Atlantic Holdings. He's involved with Virterras Materials US LLC
and has significant experience in real estate and technology
sectors. Mr. Watkins has contributed to the Land Trust of Virginia,
the Great Meadow Foundation, and the Fauquier Parks Foundation.
Previously, he was a director at several companies, including
Managed Investment Opportunity Corporation and Imperial Capital
Corporation, with a strong background in investment management and
real estate development. His governmental roles include serving in
The White House during the Ford Administration, and roles at USAID
and the U.S. Department of Agriculture under Reagan and Bush (I)
administrations, respectively. Mr. Watkins has been active in
Virginia's community governance, including positions on the
Warrenton Town Council and the Vint Hill Economic Development
Authority. He holds a BA from Alma College, an MBA from the London
Business School, and an MPA from Harvard University.
Jung Min Lee, age 52, will serve as Chief Operating Officer at the
Coretec Group, Inc, effective November 6, 2024. With 25 years of
experience in both the private and public sectors, he brings a
wealth of expertise in business operations and finance. Currently,
he holds the position of deputy director at KOTRA, a role he has
held since 2009. He promotes international investment opportunities
and supports corporations by providing FDI market research,
identifying joint venture opportunities, and facilitating
government support. Mr. Lee has been instrumental in transactions
across various sectors, recently focusing on researching U.S. trade
laws and economic policies, trade negotiations, and trade disputes.
He holds a master's degree from Johns Hopkins University.
Director Compensation – Option Grants
On November 12, 2024, the Board approved the issuance and grant of
options to purchase up to 3,300,000 shares of the Company's common
stock to each of the seven directors, which Non-Plan Options shall
vest in four equal quarterly increments over the course of one
year, shall be exercisable on a cash or cashless basis at an
exercise price of $0.015 per share (the current fair market value
of the Company's common stock), and expire 5 years from the date of
grant.
About The Coretec Group
The Coretec Group is an Ann Arbor, Michigan-based company that owns
intellectual property and patents related to the production and
application of engineered silicon to enable new technologies and
improve the lifespan and performance of a variety of materials in a
range of industries. The Company is exploring opportunities to use
its silicon discoveries and developments to improve the performance
of lithium-ion batteries, solid-state LED lights, and
semiconductors, among other technologies. It is also exploring ways
to use its intellectual property to develop optical plastics to
advance the development of its CSpace 3D imaging chamber.
Tulsa, Oklahoma-based HoganTaylor LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
March 21, 2024, citing that the Company has insufficient revenue
and capital commitments to fund the development of its planned
products, pay current operating expenses, and meet debt commitments
beyond a year following the issuance of these financial statements.
This raises substantial doubt about the Company's ability to
continue as a going concern.
For the year ended December 31, 2023, Coretec Group reported a net
loss of $2,307,639, compared to a net loss of $2,863,324 for the
same period in 2022. As of June 30, 2024, Coretec Group had
$1,345,128 in total assets, $1,988,079 in total liabilities, and
$642,951 in total stockholders' deficit.
CORETEC GROUP: Sells $7.3-Mil. Series D Preferred Shares
--------------------------------------------------------
The Coretec Group disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company entered
into a Subscription Agreement with an accredited investor, pursuant
to which the Company agreed to issue and sell to the Purchaser in a
private placement, an aggregate of 73,000 shares of the Company's
newly designated Series D Convertible Preferred Shares, stated
value $100 per share, each of which is convertible into shares of
common stock, par value $0.0002 per share, of the Company at
affixed conversion price of $0.015 per Conversion Share.
Under the Purchase Agreement, the Purchaser has purchased an
aggregate of 73,000 Series D Preferred Shares initially convertible
into an aggregate of 486,666,666 Conversion Shares for an aggregate
purchase price of $7,300,000. The Purchaser will not have the right
to convert any portion of its Series D Preferred Shares if,
together with its affiliates, it would beneficially own in excess
of 4.99% of the number of shares of Common Stock outstanding
immediately after giving effect to such conversion. Additionally,
holders of Series D Preferred Shares may elect to exchange their
shares for shares of a third-party company, in the event the
Company completes an acquisition of shares in a third-party
company, which may be publicly traded outside U.S markets. The
exchange rate for any such transaction would be determined based on
the terms and conditions set forth in the certificate of
designations for the Series D Preferred Shares.
The Agreement contains customary representations and warranties and
agreements of the Company and the Purchaser and customary
indemnification rights and obligations of the parties. The
representations and warranties of each party set forth in the
Agreement have been made solely for the benefit of the other
parties to the Agreement, and such representations and warranties
should not be relied on by any other person.
Under the terms of the Agreement, the Company is permitted to
conduct multiple closings for the sale of the Series D Preferred
Stock. Following the initial closing, which occurred on November 6,
2024, the Company conducted a subsequent closing on November 13,
2024, and may conduct additional closings until the termination of
the offering. The offering of the Series D Preferred Shares is
expected to remain open until March 31, 2025, subject to an
extension of up to 45 days at the Company's discretion. In total,
no more than 150,000 shares of Series D Preferred Stock will be
sold across the initial and any subsequent closings.
Additionally, on November 6, 2024, the Company filed a Certificate
of Designation, authorizing and designating 150,000 shares of the
Company's Series D Convertible Preferred Stock, par value $0.0002
per share, with the Oklahoma Secretary of State. Each share of the
Series D Stock has a stated value of $100.00. Each holder of the
Series D Stock shall be entitled to a number of votes equal to
shares of the Company's common stock into which such Series D Stock
are convertible, disregarding, for such purposes, any limitations
on conversion. However, the holders are not entitled to receive any
dividend rights.
The Series D Stock is convertible, at the option of the holders
and, in certain circumstances, by the Company, into shares of
common stock. Each share of the Series D Stock may be converted
into certain shares of common stock of the Company, subject to
terms and conditions and limitations as set forth in the
Certificate of Designation for the Series D Stock. Each share of
the Series D Stock may also be exchanged by the holder, at their
option, subject to certain conditions and the terms set forth in
the Certificate of Designation for the Series D Stock.
About The Coretec Group
The Coretec Group is an Ann Arbor, Michigan-based company that owns
intellectual property and patents related to the production and
application of engineered silicon to enable new technologies and
improve the lifespan and performance of a variety of materials in a
range of industries. The Company is exploring opportunities to use
its silicon discoveries and developments to improve the performance
of lithium-ion batteries, solid-state LED lights, and
semiconductors, among other technologies. It is also exploring ways
to use its intellectual property to develop optical plastics to
advance the development of its CSpace 3D imaging chamber.
Tulsa, Oklahoma-based HoganTaylor LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
March 21, 2024, citing that the Company has insufficient revenue
and capital commitments to fund the development of its planned
products, pay current operating expenses, and meet debt commitments
beyond a year following the issuance of these financial statements.
This raises substantial doubt about the Company's ability to
continue as a going concern.
For the year ended December 31, 2023, Coretec Group reported a net
loss of $2,307,639, compared to a net loss of $2,863,324 for the
same period in 2022. As of June 30, 2024, Coretec Group had
$1,345,128 in total assets, $1,988,079 in total liabilities, and
$642,951 in total stockholders' deficit.
COSMOS HEALTH: Armistice Capital Holds 9.99% Equity Stake
---------------------------------------------------------
Armistice Capital, LLC and Steven Boyd disclosed in a Schedule
13G/A Report filed with the U.S. Securities and Exchange Commission
that as of September 30, 2024, they beneficially owned an aggregate
amount of 2,148,188 shares of Cosmos Health Inc.'s Common Stock,
representing 9.99% of the shares outstanding.
Armistice Capital, LLC is the investment manager of Armistice
Capital Master Fund Ltd., the direct holder of the Shares, and
pursuant to an Investment Management Agreement, Armistice Capital
exercises voting and investment power over the securities of the
Company held by the Master Fund and thus may be deemed to
beneficially own the securities of the Company held by the Master
Fund. Mr. Boyd, as the managing member of Armistice Capital, may be
deemed to beneficially own the securities of the Company held by
the Master Fund. The Master Fund specifically disclaims beneficial
ownership of the securities of the Company directly held by it by
virtue of its inability to vote or dispose of such securities as a
result of its Investment Management Agreement with Armistice
Capital.
Armistice Capital, LLC may be reached at:
Steven Boyd
c/o Armistice Capital, LLC
510 Madison Avenue, 7th Floor
New York, New York 10022
United States of America
Tel: (212) 231-4932
A full-text copy of Armistice Capital's SEC Report is available
at:
https://tinyurl.com/nrac799b
About Cosmos Health Inc.
Cosmos Health Inc. (Nasdaq: COSM), incorporated in 2009 in Nevada,
is a diversified, vertically integrated global healthcare group.
The Company owns a portfolio of proprietary pharmaceutical and
nutraceutical brands, including Sky Premium Life, Mediterranation,
bio-bebe, and C-Sept. Through its subsidiary, Cana Laboratories
S.A., which is licensed under European Good Manufacturing Practices
(GMP) and certified by the European Medicines Agency, it
manufactures pharmaceuticals, food supplements, cosmetics,
biocides, and medical devices within the European Union.
Cosmos Health also distributes a broad line of pharmaceuticals and
parapharmaceuticals, including branded generics and OTC
medications, to retail pharmacies and wholesale distributors
through its subsidiaries in Greece and the UK. Furthermore, the
Company has established R&D partnerships targeting major health
disorders such as obesity, diabetes, and cancer, enhanced by
artificial intelligence drug repurposing technologies. It focuses
on the R&D of novel patented nutraceuticals, specialized root
extracts, proprietary complex generics, and innovative OTC
products. Additionally, Cosmos Health has entered the telehealth
space through the acquisition of ZipDoctor, Inc., based in Texas,
USA. With a global distribution platform, the Company is currently
expanding throughout Europe, Asia, and North America, with offices
and distribution centers in Thessaloniki and Athens, Greece, and in
Harlow, UK.
New York, N.Y.-based RBSM LLP, the Company's auditor since 2024,
issued a "going concern" qualification in its report dated August
5, 2024, citing that the Company has incurred substantial operating
losses and will require additional capital to continue as a going
concern. This raises substantial doubt about the Company's ability
to continue as a going concern.
As of September 30, 2024, Cosmos Health had $64,519,982 in total
assets, $29,543,383 in total liabilities, and $34,976,599 in total
stockholders' equity.
COSMOS HEALTH: Reports $2.18 Million Net Loss in Fiscal Q3
----------------------------------------------------------
Cosmos Health Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $2,182,534 on $12,411,048 of revenues for the three months ended
September 30, 2024, compared to a net loss of $3,349,204 on
$12,823,797 of revenues for the three months ended September 30,
2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $6,639,935 on $40,202,238 of revenues, compared to a
net loss of $4,790,597 on $37,537,003 of revenues for the same
period in 2023.
As of September 30, 2024, the Company had $64,519,982 in total
assets, $29,543,383 in total liabilities, and $34,976,599 in total
stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/4ccmez9a
About Cosmos Health Inc.
Cosmos Health Inc. (Nasdaq: COSM), incorporated in 2009 in Nevada,
is a diversified, vertically integrated global healthcare group.
The Company owns a portfolio of proprietary pharmaceutical and
nutraceutical brands, including Sky Premium Life, Mediterranation,
bio-bebe, and C-Sept. Through its subsidiary, Cana Laboratories
S.A., which is licensed under European Good Manufacturing Practices
(GMP) and certified by the European Medicines Agency, it
manufactures pharmaceuticals, food supplements, cosmetics,
biocides, and medical devices within the European Union.
Cosmos Health also distributes a broad line of pharmaceuticals and
parapharmaceuticals, including branded generics and OTC
medications, to retail pharmacies and wholesale distributors
through its subsidiaries in Greece and the UK. Furthermore, the
Company has established R&D partnerships targeting major health
disorders such as obesity, diabetes, and cancer, enhanced by
artificial intelligence drug repurposing technologies. It focuses
on the R&D of novel patented nutraceuticals, specialized root
extracts, proprietary complex generics, and innovative OTC
products. Additionally, Cosmos Health has entered the telehealth
space through the acquisition of ZipDoctor, Inc., based in Texas,
USA. With a global distribution platform, the Company is currently
expanding throughout Europe, Asia, and North America, with offices
and distribution centers in Thessaloniki and Athens, Greece, and in
Harlow, UK.
New York, N.Y.-based RBSM LLP, the Company's auditor since 2024,
issued a "going concern" qualification in its report dated August
5, 2024, citing that the Company has incurred substantial operating
losses and will require additional capital to continue as a going
concern. This raises substantial doubt about the Company's ability
to continue as a going concern.
COUSIN ENTERPRISES: Unsecureds to be Paid in Full in Plan
---------------------------------------------------------
Cousin Enterprises, LLC, filed with the U.S. Bankruptcy Court for
the Eastern District of Tennessee a Disclosure Statement describing
Plan of Reorganization dated November 14, 2024.
The Debtor was established in 2021 by Members Randall Cousin and
Delicia Cousin. Debtor is a member-managed Tennessee Limited
Liability Company that provides construction services, renovation
services, and general carpentry services on a contract basis.
The Debtor is located at 286 Emily Ln, Bell Buckle, TN 370201,
Parcel ID No. 020L-A-002.00 (hereinafter "Emily"). Debtor's largest
project was Emily. To facilitate same, Debtor procured a loan from
New Silver Lending, LLC (hereinafter "NSL") on or about April 1,
2022, in the principal amount of $262,500.00.
As a result of alleged default, NSL attempted to proceed with
foreclosure, scheduling sale on June 13, 2024. Fearing loss of its
largest asset and immediate, irreparable harm, Debtor contacted The
Law Office of W. Thomas Bible, Jr. d/b/a Tom Bible Law to see what
workout options may be available and to discuss the possibility of
seeking Chapter 11 relief. On June 12, 2024 ("Petition Date")
Debtor filed a voluntary petition under the provisions of Chapter
11 of the United States Bankruptcy Code, with the United States
Bankruptcy Court for the Eastern District of Tennessee.
The Debtor has 1 primary asset: real property commonly known as 286
Emily Ln, Bell Buckle, TN 37020, with an estimated value of
$520,000.00.
Class 3 consists of General Unsecured Claims. This class is
impaired. To the extent that any such claims are filed, they will
be paid in full, with interest at the rate of 8% per annum, upon
the earlier of: a) sale of Emily; or b) the fifth anniversary of
the Effective Date.
The Debtor is aware of 2 claims in this class: Citibank, N.A./The
Home Depot ($5,600.00); and Smyrna Ready Mix ($6,500.00).
The Debtor will continue as Debtor-In-Possession, managing
day-to-day affairs, and will act as disbursing agent.
A full-text copy of the Disclosure Statement dated Nov. 14, 2024 is
available at https://urlcurt.com/u?l=cPlmRV from PacerMonitor.com
at no charge.
Counsel to the Debtor:
W. Thomas Bible, Jr., Esq.
Law Office of W. Thomas Bible, Jr.
6918 Shallowford Road, Suite 100
Chattanooga, TN 37421
Telephone: (423) 424-3116
Facsimile: (423) 553-0639
Email: tom@tombiblelaw.com
About Cousin Enterprises
Cousin Enterprises, LLC, is a member-managed Tennessee Limited
Liability Company that provides construction services, renovation
services, and general carpentry services on a contract basis.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tenn. Case No. 24-11426) on June 12,
2024. In the petition signed by Randall Scott Cousin, member, the
Debtor disclosed up to $1 million in assets and up to $500,000 in
liabilities.
Judge Nicholas W. Whittenburg oversees the case.
W. Thomas Bible, Jr., Esq., at Tom Bible Law, is the Debtor's
bankruptcy counsel.
CRACKED EGGERY: Files Chapter 11, Jan. 6 Creditors' Meeting
-----------------------------------------------------------
On December 5, 2024, Cracked Eggery Inc. filed Chapter 11
protection in the District of Columbia. 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 January 6,
2025 at 10:00 AM, US Trustee Remote Location: Telephone #: (877)
465-7076;Passcode: 7191296.
About Cracked Eggery Inc.
Cracked Eggery Inc. -- https://crackedeggery.com/-- serves
delicious and innovative egg sandwiches, bowls and tots made from
premium, local ingredients.
Cracked Eggery Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Col. Case No. 24-00416) on December 5,
2024. In the petition filed by Andrew Zarinsky, as
co-founder/director, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Elizabeth L. Gunn handles the case.
The Debtor is represented by:
Kevin R. Feig, Esq.
MCNAMEE HOSEA, P.A.
6404 Ivy Lane, Suite 820
Greenbelt, MD 20770
Tel: (301) 441-2420
Fax: (301) 982-9450
E-mail: kfeig@mhlawyers.com
CRICKET AUTOMOTIVE: Gets Interim OK to Use Cash Collateral
----------------------------------------------------------
Cricket Automotive Center, LLC received interim approval from the
U.S. Bankruptcy Court for the Eastern District of North Carolina,
Raleigh Division, to use cash collateral.
The company needs to use cash collateral to pay ordinary operating
expenses.
A review of the North Carolina Secretary of State's UCC filings
reveals that Cricket Service Center, LLC, CT Corporation System, as
representative, and Corporation Service Company, as representative,
may have a lien on the cash collateral.
As adequate protection, and to the extent that cash collateral is
used, the potential secured creditors will receive a post-petition
lien on the company's cash and inventory to the extent of the use
and to the extent that the pre-bankruptcy lien in the same type of
collateral was valid, perfected, enforceable, and non-avoidable as
of the petition date.
As additional protection, Cricket Service Center will receive
payment of $2,000 for December.
The next hearing is scheduled for Jan. 6, 2025.
About Cricket Automotive Center
Cricket Automotive Center, LLC operates a towing and repair
business.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.C. Case No. 24-04172-5-DMW) on
December 2, 2024. In the petition signed by Fred Steider, owner,
the Debtor disclosed up to $500,000 in assets and up to $1 million
in liabilities.
Judge David M. Warren oversees the case.
William P. Janvier, Esq., at Stevens Martin Vaughn & Tadych, PLLC,
represents the Debtor as legal counsel.
CRUCIBLE INDUSTRIES: Seeks to Sell Crucible Particle Metallurgy Biz
-------------------------------------------------------------------
Crucible Industries LLC seeks permission from the U.S. Bankruptcy
Court for the Northern District of New York to sell business
operations, free and clear of liens, claims, encumbrances and
interests.
The Debtor operates a manufacturing facility in Solvay, New York,
which specializes in the production of patented, high-performance
specialty "Crucible Particle Metallurgy" steel products.
The Debtor has struggled financially due to a softening demand for
steel products generally as manufacturing has slowed world-wide, as
well as the challenges of price competition with larger and better
resourced competitors, and other micro- and macroeconomic factors.
The Debtor retains Calibre Group LLC to market its assets and
business operations for sale.
Calibre contacted approximately 67 potential financial and/or
strategic purchasers, 18 of whom executed a non-disclosure
agreement to receive diligence information beyond what was
contained in the initial "teaser."
The Debtor selects EraSteel Inc.'s proposed stalking horse
purchaser and enters into an asset purchase agreement for the
Property.
The Stalking Horse agreement provides that the Stalking Horse
Purchaser will purchase all or substantially all of the assets
associated with the Debtor's Crucible Particle Metallurgy line of
business, together with the Debtor's intellectual property rights,
accounts receivable, and inventory in exchange for a cash purchase
price subject to certain adjustments and credits calculated to
account for fluctuations in inventory and accounts receivable from
the amounts reflected in the Debtor’s September 2024 end of month
financials.
Excluded assets in the sale are:
-- all cash and cash equivalents, bank accounts and securities of
the Debtor;
-- all Contracts;
-- the corporate seals, organizational documents, minute books,
stock books, Tax Returns, books of
account or other records having to do with the corporate
organization of the Debtor, all
employee-related or employee benefit-related files or records,
other than personnel files of
Transferred Employees and any other books and records which the
Debtor is prohibited from
disclosing or transferring to Buyer under applicable Law and is
required by applicable Law to
retain;
-- all insurance policies of the Debtor and all rights to
applicable claims and
proceeds thereunder;
-- all Benefit Plans and trusts or other assets attributable
thereto;
-- all Tax assets (including duty and Tax refunds and prepayments)
of the Debtor;
-- all rights to any action, suit or claim of any nature available
to or being pursued by the
Debtor, whether arising by way of counterclaim or otherwise;
-- those assets, properties and rights specifically set forth on
Section 2.02 of the Disclosure
Schedules to the Stalking Horse APA, which includes, without
limitation, substantially all
machinery and equipment owned by the Debtor which is not utilized
in its “CPM” business; and
-- the rights which accrue or will accrue to the Debtor under the
Transaction Document
To obtain maximum value, the Debtor proposes to hold an auction
process with the Stalking Horse APA serving as a basis for
competitive and/or complimentary bids. In connection with the
auction process, the Debtor has agreed to grant the Stalking Horse
Purchaser certain bidding protections, including a break-up fee of
$520,460. If no other bids are received for the Lot 1 Assets that
are higher or otherwise better than the transaction set forth in
the Stalking Horse APA, no Break-Up Expense Fee will be payable and
the Debtor will ask the Court to approve the sale of the Lot 1
Assets to the Stalking Horse Purchaser pursuant to the terms of the
Stalking Horse APA.
In addition to the Lot 1 Assets contemplated to be sold pursuant to
the Stalking Horse Purchaser, the Debtor also proposes to solicit
bids for those residual assets which are excluded from the Stalking
Horse APA (collectively, the "Lot 2 Assets") and any combined bids
for both Lot 1 Assets and Lot 2 Assets.
The Debtor believes that an expedited sale is critical to
preserving value and that every additional day spent in Chapter 11
increases the risk of value deterioration. Thus, in order to
maximize value and ensure a successful result in this Chapter 11
Case, a prompt and orderly sale of the Purchased Assets must take
place.
The lienholders of the Property include KeyBank National
Association, New York Urban Development Corporation, and CX
Industries LLC.
The Debtor proposes that the sale of the Purchased Assets be
subject to higher or better offers as determined in accordance with
the proposed Bidding Procedures.
The Debtor further asserts that the proposed Bidding Procedures
will maximize the realizable value of the Purchased Assets for the
benefit of the Debtor’s estate, creditors and other interested
parties.
About Crucible Industries LLC
Based in Syracuse, New York, Crucible Materials Corporation -- aka
Crucible Specialty Metals, Crucible Service Centers, Crucible
Compaction Metals, Crucible Research and Trent Tube --
http://www.crucible.com/-- produced a wide array of steel products
for manufacturers, principally in the automotive industry. After
experiencing a significant drop in demand, sparked in part by the
disruption in the automotive industry, the Company and its
affiliate, Crucible Development Corporation, filed for Chapter 11
protection on May 6, 2009 (Bankr. D. Del. Lead Case No. 09-11582).
Mark Minuti, Esq., at Saul Ewing LLP represented the Debtors in
their restructuring efforts. The Debtors engaged Duff & Phelps
Securities LLP as investment banker; RAS Management Advisors LLC as
business advisor; and Epiq Bankruptcy Solutions LLC as claims
agent. Roberta A. DeAngelis, United States Trustee for Region 3,
appointed five creditors to serve on the Official Committee of
Unsecured Creditors. Crucible Materials estimated assets and debts
both ranging from $100 million to $500 million in its Chapter 11
petition.
From four asset sales pursuant to 11 U.S.C. Sec. 363, Crucible
generated $14.4 million after secured lenders were fully paid on
$64.5 million in claims outstanding at the outset of the Chapter
case.
Under the Debtors' plan of reorganization, which was confirmed on
August 26, 2010, Richard D. Caruso was appointed Litigation
Trustee.
Judge Wendy A Kinsella presides over the case.
CRYSTAL BASIN: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Crystal Basin Cellars, Inc.
3550 Carson Road
Camino, CA 95709
Chapter 11 Petition Date: December 13, 2024
Court: United States Bankruptcy Court
Eastern District of California
Case No.: 24-25612
Judge: Hon. Christopher D Jaime
Debtor's Counsel: Peter G. Macaluso, Esq.
LAW OFFICE OF PETER G. MACALUSO
7230 South Land Park Drive #127
Sacramento, CA 95831
Tel: 916-392-6591
Fax: 916-392-6590
E-mail: info@pmbankruptcy.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Owen as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/YPHYTDA/Crystal_Basin_Cellars_Inc__caebke-24-25612__0001.0.pdf?mcid=tGE4TAMA
CUCINA ANTICA: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Cucina Antica Foods, Corp.
5310 Harvest Hill Road, Ste. 195
Dallas, TX 75230
Business Description: Cucina Antica is a manufacturer of pasta
sauces and ketchup.
Chapter 11 Petition Date: December 13, 2024
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 24-34058
Debtor's Counsel: Frances A. Smith, Esq.
ROSS, SMITH & BINFORD, PC
700 N. Pearl Street 1610
Dallas TX 75201
Tel: (214) 593-4976
E-mail: frances.smith@rsbfirm.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Suzanne Fusco as authorized
representative.
A copy of the Debtor's list of 20 unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/TYWEYOY/Cucina_Antica_Foods_Corp__txnbke-24-34058__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/T7FWY2A/Cucina_Antica_Foods_Corp__txnbke-24-34058__0001.0.pdf?mcid=tGE4TAMA
CURIS INC: Reports $10.1 Million Net Loss in Fiscal Q3
------------------------------------------------------
Curis, Inc. filed with the U.S. Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $10.1
million on $2.9 million of net revenues for the three months ended
September 30, 2024, compared to a net loss of $12.2 million on $2.8
million of net revenues for the three months ended September 30,
2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $33.8 million on $7.6 million of net revenues,
compared to a net loss of $35.7 million on $7.3 million of net
revenues for the same period in 2023.
As of September 30, 2024, the Company had $42.5 million in total
assets, $51.2 million in total liabilities, and $8.7 million in
total stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/mrxbx6tx
About Curis
Lexington, Mass.-based Curis, Inc. is a biotechnology company
focused on the development of emavusertib (CA-4948), an orally
available, small molecule inhibitor of Interleukin-1 receptor
associated kinase, or IRAK4. IRAK4 plays an essential role in the
toll-like receptor, or TLR, and interleukin-1 receptor, or IL-1R,
signaling pathways, which are frequently dysregulated in patients
with Cancer.
As of March 31, 2024, the Company had $62 million in total assets,
$52.6 million in total liabilities, and $9.5 million in total
stockholders' equity.
Boston, Mass.-based PricewaterhouseCoopers, the Company's auditor
since 2002, issued a "going concern" qualification in its report
dated February 8, 2024, citing that the Company has incurred losses
and cash outflows from operations that raise substantial doubt
about its ability to continue as a going concern."
CV SCIENCES: Reports $456,000 Net Loss in Fiscal Q3
---------------------------------------------------
CV Sciences, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $456,000 on $3.9 million of net product sales for the three
months ended September 30, 2024, compared to a net loss of $447,000
on $4.1 million of net product sales for the three months ended
September 30, 2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $1.7 million on $11.8 million of net product sales,
compared to a net income of $4 million on $12.2 million of net
product sales for the same period in 2023.
The Company generated revenue of $3.9 million for third quarter
2024 compared to $4.1 million for the third quarter 2023 and $4.0
million for the second quarter 2024
As of September 30, 2024, the Company had $8.4 million in total
assets, $6.2 million in total liabilities, and $2.2 million in
total stockholders' equity.
Management Commentary
"We are pleased with our third 2024 results. Revenues for our core
business remained stable around the $4 million range during the
third quarter 2024 despite a challenging environment. With our
recent acquisitions and new product innovations, we believe that we
are nicely positioned to grow our revenue in 2025. Our gross
margins have improved throughout 2024 compared to previous years
and we anticipate making further gross margin improvements in
2025," stated Joseph Dowling, Chief Executive Officer of CV
Sciences. "Our third quarter 2024 progress demonstrates our
continuous commitment to innovation and cost-efficient execution as
we move closer to profitability and positive cash flow. We look
forward to organically grow our business and pursue additional M&A
opportunities in the near future to improve our top-line revenue,
profitability and shareholder value."
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/mmwwh56f
About CV Sciences Inc.
San Diego, Calif.-based CV Sciences, Inc. is a consumer wellness
company specializing in hemp extracts and other proven,
science-backed, natural ingredients and products, which are sold
through a range of sales channels from business-to-business to
business-to-consumer.
Irvine, Calif.-based Haskell & White LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has experienced
recurring operating losses, negative cash flows from operations,
and has limited liquid resources. These matters raise substantial
doubt about the Company's ability to continue as a going concern.
CYTOSORBENTS CORP: Granahan Investment Holds 3.85% Equity Stake
---------------------------------------------------------------
Granahan Investment Management LLC disclosed in a Schedule 13G/A
filed with the U.S. Securities and Exchange Commission that as of
September 30, 2024, it beneficially owned 2,094,882 shares of
Cytosorbents Corporation's common stock, representing 3.85% of the
shares outstanding.
Granahan Investment Management may be reached at:
Brian Granahan
Chief Compliance Officer
Wyman Street, Suite 460
Waltham, MA 02451
Tel: 781-890-4412
A full-text copy of Granahan Investment's SEC Report is available
at:
https://tinyurl.com/7cxfwmeu
About CytoSorbents
Based in Monmouth Junction, N.J., CytoSorbents Corporation is
engaged in critical care immunotherapy, specializing in blood
purification. Its flagship product, CytoSorb, is approved in the
European Union with distribution in more than 75 countries around
the world as an extracorporeal cytokine adsorber designed to reduce
the "cytokine storm" or "cytokine release syndrome" seen in common
critical illnesses that may result in massive inflammation, organ
failure, and patient death.
East Brunswick, New Jersey-based WithumSmith+Brown, PC, the
Company's auditor since 2004, issued a "going concern"
qualification in its report dated March 14, 2024, citing that the
Company has suffered recurring losses from operations, has
experienced cash used from operations, and has an accumulated
deficit, which raises substantial doubt about its ability to
continue as a going concern.
CytoSorbents reported a net loss of $28.51 million attributable to
common stockholders for the year ended Dec. 31, 2023, compared to a
net loss of $32.81 million attributable to common stockholders for
the year ended Dec. 31, 2022.
D DUNCAN FLORISTRY: Case Summary & 13 Unsecured Creditors
---------------------------------------------------------
Debtor: D Duncan Floristry and Boutique LLC
818 Broadway Street
Cape Girardeau, MO 63701
Business Description: D Duncan Floristry & Boutique creates floral
designs for weddings, anniversaries,
funerals, birthdays, and more.
Chapter 11 Petition Date: December 12, 2024
Court: United States Bankruptcy Court
Eastern District of Missouri
Case No.: 24-10677
Debtor's Counsel: David M. Dare, Esq.
HERREN, DARE & STREETT
439 S. Kirkwood Road, Suite 204
St. Louis, MO 63122
Tel: 314-965-3373
Fax: 314-965-2225
E-mail: hdsstl@hdsstl.com
Total Assets: $1,098,900
Total Liabilities: $1,461,129
The petition was signed by Dustin Duncan as owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/PEAYY7I/D_Duncan_Floristry_and_Boutique__moebke-24-10677__0001.0.pdf?mcid=tGE4TAMA
D.H. COOKSEY: Sec. 341(a) Meeting of Creditors on Jan. 7
--------------------------------------------------------
On December 3, 2024, D.H. Cooksey Properties LLC filed Chapter 11
protection in the Western District of Louisiana. According to court
documents, the Debtor reports between $1 million and $10 million in
debt owed to 1 and 49 creditors. The petition states funds will not
be available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on January 7,
2025 at 1:00 PM, TELEPHONIC MEETING. CONFERENCE LINE:866-762-6425,
PARTICIPANT CODE:8530051#.
About D.H. Cooksey Properties LLC
D.H. Cooksey Properties LLC is a limited liability company.
D.H. Cooksey Properties LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. La. Case No.
24-1143) on December 3, 2024. In the petition filed by Deborah H.
Cooksey, as sole member and manager, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge John S. Hodge handles the case.
The Debtor is represented by:
Angela Smith, Esq.
LAW OFFICE OF ANGELA SMITH
852 Texas Avenue
Shreveport, LA 71101
Tel: (318) 219-8011
Fax: (318) 703-2883
E-mail: amsmithlaw@comcast.net
DALE HOLLOW: Gets Interim OK to Use Cash Collateral
---------------------------------------------------
Dale Hollow Charcoal, LLC received interim approval from the U.S.
Bankruptcy Court for the Western District of Kentucky, Bowling
Green Division, to use cash collateral and provide adequate
protection.
The company requires the use of cash collateral to meet its
post-petition obligations and to pay its expenses, general and
administrative operating expenses, and other necessary costs and
expenses incurred during the pendency of the bankruptcy case.
The company has two members, Gary Wallace and Steve Beyer. Mr.
Wallace owns 51% and is responsible under the LLC Operating
Agreement for the "daily operation" of the business. The two owners
are embroiled in ongoing disagreements over the management and
financial affairs of the company, leading to a lawsuit in state
court. This legal battle has drained the LLC's resources and
hindered its operations. To address the situation, a
court-appointed conservator, Dean Dorton, is overseeing the
company's finances. To resolve these issues and restructure the
business, Beyer, as a manager, has filed for Chapter 11 bankruptcy.
The goal is to emerge from bankruptcy, pay all creditors, and
continue operations.
A UCC search on the Kentucky Secretary of State's website shows no
creditors claim an interest in Cash Collateral pursuant to UCC-1
financing statements and Debtor is not aware of any liens that
encumber the Debtor's accounts, accounts receivables, and receipts,
amongst other personal property.
There is no need to provide adequate protection pursuant to 11
U.S.C. sections 361 and 363. However, the Debtor will continue to
account for all cash use.
About Dale Hollow Charcoal
Dale Hollow Charcoal LLC is s involve the manufacturing and sale of
charcoal generated at its plant facility located in Clinton County,
KY.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Ky. Case No. 24-10863-jal) on December
2, 2024. In the petition signed by Steve Beyer, managing member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Laura Day DelCotto, Esq., at DelCotto Law Group, PLLC, represents
the Debtor as legal counsel.
DANT A. SANDRAS: Fine-Tunes Plan Documents
------------------------------------------
Dant A. Sandras, D.D.S., L.L.C., submitted an Amended Plan of
Reorganization for Small Business dated November 12, 2024.
The financial projections indicate that the Debtor, after payments
for expenditures necessary for the continuation, preservation and
operations, unclassified claims and secured claims, will have
projected disposable income for three years in the total amount of
$75,831.
The anticipated Effective Date is January 1, 2025. The final Plan
payment is expected to be paid on or before the first quarter of
2030.
This Plan proposes to pay unsecured creditors $96,000, which
exceeds Debtor's three year projected disposable income. Payments
to unsecured creditors shall commence one year after the Effective
Date (to allow for payment of Allowed Administrative Claims), with
the final payment to unsecured creditors due on the fifth
anniversary of the Effective Date. The payments to unsecured
creditors is equal to or greater than the present value of the
liquidation value.
The Plan proposes that the Debtor will pay holders of Allowed
Claims their Projected Disposable Income which includes sums from
future services.
Class 2 consists of Allowed General Unsecured Claims. Sixteen
quarterly payments in the amount of $6,000 (total payments =
$96,000), to be shared Pro Rata by Allowed General Unsecured
Creditors, commencing at the end of the first full quarter that is
twelve full months following the Effective Date for a total of four
years of payments. Class 2 Allowed General Unsecured Claims shall
also receive their Pro Rata share of any net recovery from Reserved
Causes of Action.
The holders of Class 2 Allowed General Unsecured Claims are
Impaired, and thus, are entitled to vote to accept or reject the
Plan. Estimated distribution is 10% for Class 2. The estimated
amount is $941,080 for holders of allowed claims including the
deficiency claims. The projected disposable income is $75,831.
Dr. Dant A. Sandras will continue to act as manager of the Debtor
after the Effective Date. His salary annual salary will be
$120,000 from the Debtor, subject to an annual cost of living
increase of no more than 4% per year during the term of the Plan.
It is anticipated that the Debtor will fund its plan payments from
operations and from disposable income earned from its operations.
A full-text copy of the Amended Plan dated November 12, 2024 is
available at https://urlcurt.com/u?l=lqGkgG from PacerMonitor.com
at no charge.
About Dant A. Sandras, D.D.S., L.L.C.
Dant A. Sandras, DDS, LLC, is primarily engaged in the private or
group practice of general or specialized dentistry or dental
surgery.
Dant A. Sandras, D.D.S., L.L.C. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La.
Case No. 24-11046) on June 4, 2024. The petition was signed by Dant
A. Sandras as president/owner. At the time of filing, the Debtor
estimated $588,287 in assets and $1,351,495 in liabilities.
Judge Meredith S. Grabil oversees the case.
Leo D. Congeni, Esq. at CONGENI LAW FIRM, LLC, is the Debtor's
counsel.
DARE BIOSCIENCE: Reports $4.7 Million Net Loss in Fiscal Q3
-----------------------------------------------------------
Dare Bioscience, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $4,702,501 on $41,691 of revenues for the three months ended
September 30, 2024, compared to a net loss of $8,299,096 on
$1,000,000 of revenues for the three months ended September 30,
2023.
For the nine months ended September 30, 2024, the Company reported
a net income of $1,452,799 on $73,431 of revenues, compared to a
net loss of $25,103,829 on $1,000,000 of revenues for the same
period in 2023.
As of September 30, 2024, the Company had $18,058,801 in total
assets, $19,543,284 in total liabilities, and $1,484,483 in total
stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/63kfvpmj
About Dare Bioscience
Dare Bioscience, Inc. is a biopharmaceutical company committed to
advancing innovative products for women's health. The Company's
mission is to identify, develop, and bring to market a diverse
portfolio of differentiated therapies that prioritize women's
health and well-being, expand treatment options, and improve
outcomes, primarily in the areas of contraception, vaginal health,
reproductive health, menopause, sexual health, and fertility.
Irvine, California-based Haskell & White LLP, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 28, 2024, citing that the Company has recurring losses
from operations, negative cash flow from operations, and is
dependent on additional financing to fund operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
DE HOOP: Samuel Dawidowicz Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 2 appointed Samuel Dawidowicz as
Subchapter V trustee for De Hoop Corporation.
Mr. Dawidowicz will be paid an hourly fee of $565 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Dawidowicz declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Samuel Dawidowicz
215 East 68th Street
New York, NY 10065
Phone: (917) 679-0382
About De Hoop Corporation
De Hoop Corporation sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-12005) on November 18,
2024, with $1,000,001 to $10 million in assets and $500,001 to $1
million in liabilities.
Eric S. Medina, Esq., at Medina Law Firm, LLC represents the Debtor
as legal counsel.
DIAMOND HR BENEFITS: Seeks Bankruptcy Protection in E.D.N.Y.
------------------------------------------------------------
On December 4, 2024, Diamond HR Benefits LLC filed Chapter 11
protection in the Eastern District of New York. According to court
documents, the Debtor reports $3,331,466 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 January 13,
2025 at 12:00 PM, TELEPHONIC MEETING. CONFERENCE LINE:1 (866)
919-4760, PARTICIPANT CODE:4081400#.
About Diamond HR Benefits LLC
Diamond HR Benefits LLC is a limited liability company.
Diamond HR Benefits LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-45103) on December 4,
2024. In the petition filed by Meir Blum, as member & 100%
shareholder, the Debtor reports total assets of $2,727,562 and
total liabilities of $3,331,466.
Honorable Bankruptcy Judge Jil Mazer-Marino handles the case.
The Debtor is represented by:
Rachel S. Blumenfeld, Esq.
LAW OFFICE OF RACHEL S. BLUMENFELD PLLC
26 Court Street, Suite 2220
Brooklyn, NY 11242
Tel: 718-858-9600
E-mail: rachel@blumenfeldbankruptcy.com
DICK’S AUTOMOTIVE: Gets OK to Use Cash Collateral Until Jan. 9
----------------------------------------------------------------
Dick's Automotive Transport, Inc. received interim approval from
the U.S. Bankruptcy Court for the Northern District of California,
San Jose Division to use cash collateral until Jan. 9 next year,
marking the second extension since the company's Chapter 11 filing
in November.
The court previously authorized the company to use $30,000 in cash
collateral to pay for its pre-bankruptcy payroll.
The second interim order signed by Judge M. Elaine Hammond approved
the use of cash collateral to pay the taxes on the previously
approved $30,000 prebankruptcy payroll as well as the remaining
amounts requested in the company's budget.
The specific amounts approved are as follows: $48,875.56 for the
periods Nov. 17 to 23; $30,962.93 for Nov. 24 to 30; $45,198.09 for
Dec. 1 to 7, 2024; $34,815.99 for Dec. 8 to 14; $48,722.65 for Dec.
15 to 21; $27,734.91 for Dec. 22 to 28; $45,207.13 for Dec. 29 to
Jan. 4, 2025; and $34,815.99 for Jan. 5 to 11, 2025.
The U.S. Small Business Administration will receive a monthly
payment of $985.30 as adequate protection.
The final hearing is scheduled for Jan. 9. Objections are due by
Jan. 2.
About Dick's Automotive Transport
Dick's Automotive Transport, Inc. sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No.
24-51752) on Nov. 18, 2024, with $1 million to $10 million in both
assets and liabilities.
Judge M Elaine Hammond oversees the case.
The Debtor is represented by Robert G. Harris, Esq., at the Law
Offices of Binder and Malter.
DIEBOLD NIXDORF: Moody's Ups CFR to 'B2' & Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Ratings upgraded the credit ratings of Diebold Nixdorf,
Inc., including its Corporate Family Rating to B2 from B3 and
Probability of Default Rating to B2-PD from B3-PD. Moody's also
assigned a B2 rating to the proposed $950 million Senior Secured
Notes. Moody's reviewed but did not take an action on the current
Senior Secured Bank Credit Facility, rated B3. The Speculative
Grade Liquidity score changed to SGL-2 from SGL-3. The outlook
changed to stable from positive.
The upgrade of the CFR to B2 from B3 reflects expectations that the
proposed refinancing will bolster the liquidity position, with
lower interest costs (estimated at around $70 million less) and
greater revolver availability of about $110 million, with some
offset from a $100 million reduction in secured debt as part of the
transaction and close to $40 million in fees and expenses, which
will reduce the cash balance. The upgrade also reflects the
company's commitment to further improve linearity of cash flows
(with the first three quarters of the year less negative than in
prior years), a much reduced debt quantum relative to
pre-bankruptcy days, and expectations for moderate leverage and
annual free cash flow generation in excess of $100 million.
The proceeds from the new $950 million secured notes due 2030,
along with $140 million of balance sheet cash, will be used to
refinance the existing $1,050 million Chapter 11 exit term loan and
to cover the term loan call premium and other fees and expenses. A
new $310 million secured revolver (expected to be unrated) will
replace the existing $200 million revolver (also unrated). The
rating on the existing term loan will be withdrawn once the
transaction closes.
The upgrades and new rating assignment are subject to review of
final documentation and no material change in the size, terms and
conditions of the transaction as advised to us.
The stable outlook reflects expectations that the company's
earnings will increase as a result of ongoing cost reductions and
some revenue growth and that the company will maintain at least
adequate liquidity during each quarter.
RATINGS RATIONALE
The B2 CFR reflects the company's susceptibility to macroeconomic
cycles and supply chain challenges with about 40% of its revenue
being hardware point-in-time sales that have declined notably
amidst such headwinds. A seasonal cash flow profile, in which the
first three quarters of the year have historically consumed cash
flow, together with meaningful restructuring-related costs, have
pressured the credit position in the past. The company is also
exposed to a potential acceleration in the adoption of electronic
payments, which could lead to reduced need for ATMs. A recent
slowdown in the company's point-of-sale (POS) and Self-Checkout
sales, is seemingly due to a reassessment of retailers on how to
best reduce in-store shrinkage as well as inventory digestion from
record shipments in recent years.
These factors are tempered by a substantially reduced debt quantum
since the company's Chapter 11 filing in June 2023 leading to an
expected pro forma 3x debt-to-EBITDA (Moody's adjusted) at year end
2024, a strong market position in the global ATM industry with
market share estimated at close to 30% with particularly good sales
activity from cash recycler ATMs in North America, as well as
solid—albeit still limited—progress on realizing greater
linearity of cash flows, with three quarters of 2024 being the best
so far from a cash flow perspective since 2019. The company's
improved liquidity position, including with its reduction of
current liabilities overall and also relative to current assets as
well as the absence of near-term maturities, also supports the
credit profile.
Liquidity is good and is supported by a $209 million of pro forma
cash and short-term investments at September 30, 2024, about $250
million available under the company's proposed $310 million
revolving credit facility due 2029 (after about $39 million in
borrowings and $20 million in letters of credit), and expectations
of about $110 million of free cash flow in 2024 (excluding fees and
expenses from the current transaction), followed by a higher amount
expected for 2025. These sources of liquidity compare favorably to
the estimated $200 million of minimum cash needs to run the
business. The revolver is expected to include a maximum net
leverage covenant ratio of 4x at close, stepping down to 3.25x at
December 31, 2025. Moody's expect the company to maintain
sufficient cushion given the 1.6x net leverage ratio estimated at
September 30, 2024.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded with expectations of consistent
annual free cash flow generation (with free cash flow to debt
consistently in the 10% range), maintaining adequate liquidity
(well above minimum cash needs, including in adverse economic or
supply chain scenarios) each quarter, achieving consistency in
greater cash flow linearity, as well as a sustained track record of
meeting forecasted results.
The ratings could be downgraded with free cash flow to debt below
5%, weakening liquidity such that the overall liquidity position is
tight relative to minimum cash needs, or with sustained declines of
revenue and EBITDA.
STRUCTURAL CONSIDERATIONS
The B2 rating for the proposed senior secured notes reflects the
B2-PD Probability of Default Rating and perfected priority security
interests and liens on substantially all assets of the borrower and
each guarantor, with no debt obligations ranking above or below it
in the liability waterfall.
Headquartered in North Canton, OH, Diebold is a leading global
provider of ATM and POS equipment, services and software to
financial institutions and enterprise retailers. Banking revenue
represented approximately 74% of LTM revenue, with the remainder
representing sales to retail customers. Diebold acquired Wincor
Nixdorf AG in 2016. Revenues in the last twelve months ended
September 30, 2024, were approximately $3.8 billion.
The principal methodology used in these ratings was Diversified
Technology published in February 2022.
DISH DBS: Reports $339.8 Million Net Income in Fiscal Q3
--------------------------------------------------------
DISH DBS Corporation filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net income
of $339.8 million on $2.6 billion of total revenue for the three
months ended September 30, 2024, compared to a net income of $388.8
million on $2.8 billion of total revenue for the three months ended
September 30, 2023.
For the nine months ended September 30, 2024, the Company reported
a net income of $1.1 billion on $8 billion of total revenue,
compared to a net income of $1.3 billion on $8.7 billion of total
revenue for the same period in 2023.
During the third quarter of 2024, DISH DBS completed its issuance
of $2.5 billion (including $136 million of debt issuance costs) of
New DISH DBS Financing, which includes $2.047 billion of funds
required to be used for the redemption, repayment or repurchase of
the principal balance and remaining interest outstanding on our 5
7/8% Senior Notes due November 15, 2024. As a result of this
transaction, substantial doubt no longer exists about the Company's
ability to continue as a going concern.
As of September 30, 2024, the Company had $9.8 billion in total
assets, $17.4 billion in total liabilities, and $7.6 billion in
total stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/yshxs5fw
About DISH DBS Corporation
Englewood, Colo.-based DISH DBS Corporation is a holding company
and was organized in 1996 as a corporation under the laws of the
State of Colorado. DISH DBS is an indirect, wholly-owned subsidiary
of DISH Network, which is a wholly-owned subsidiary of EchoStar
Corporation, a publicly traded company listed on the NASDAQ Global
Select Market under the symbol "SATS." DISH DBS currently operates
one business segment, Pay-TV. Its Pay-TV business strategy is to be
the best provider of video services in the United States by
providing products with the best technology, outstanding customer
service, and great value.
* * *
This concludes the Troubled Company Reporter's coverage of DISH DBS
until facts and circumstances, if any, emerge that demonstrate
financial or operational strain or difficulty at a level sufficient
to warrant renewed coverage.
DOCTURS INC: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Docturs Inc.
240 West 40th Street
New York, NY 10018
Business Description: The Debtor offers healthcare services.
Chapter 11 Petition Date: December 12, 2024
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 24-12316
Judge: Hon. David S Jones
Debtor's Counsel: Leo Jacobs, Esq.
JACOBS P.C.
595 Madison Avenue FL 39
New York, NY 10022
Tel: (718) 772-8704
E-mail: leo@jacobspc.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Dr. Alexandre Scheer as president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/P2INV2A/Docturs_Inc__nysbke-24-12316__0001.0.pdf?mcid=tGE4TAMA
DURECT CORP: Registers 2-Mil. Additional Shares Under Stock Plan
----------------------------------------------------------------
DURECT Corporation filed a Registration Statement on Form S-8 with
the U.S. Securities and Exchange Commission to register an
additional 2,000,000 shares of common stock, $0.0001 par value per
share, issuable to eligible persons under its 2000 Stock Plan, as
amended. An amendment of the Plan, including an increase of
2,000,000 shares of Common Stock available for issuance thereunder,
was approved at the Company's 2024 Annual Meeting of Stockholders
held on September 25, 2024 as previously reported on the Company's
Form 8-K filed with the Commission on September 26, 2024.
Pursuant to General Instruction E of Form S-8, the Company
incorporates by reference into this Registration Statement, except
to the extent supplemented, amended or superseded by the
information set forth herein, the contents of the Registration
Statements on Form S-8, including all attachments and exhibits
thereto, relating to the Plan as previously filed with the
Commission by the Company on October 5, 2000, through and August 5,
2022. This Registration Statement relates to securities of the same
class as those to which the Prior Registration Statements relate.
In accordance with the instructional note to Part I of Form S-8 as
promulgated by the Commission, the information specified by Part I
of the Form S-8 has been omitted from this Registration Statement.
A full-text copy of the Registration Statement is available at:
https://tinyurl.com/tyun9emb
About DURECT Corporation
Headquartered in Cupertino, Calif., DURECT is a late-stage
biopharmaceutical company pioneering the development of epigenetic
therapies that target dysregulated DNA methylation to transform the
treatment of serious and life-threatening conditions, including
acute organ injury and cancer. Larsucosterol, DURECT's lead drug
candidate, binds to and inhibits the activity of DNA
methyltransferases (DNMTs), epigenetic enzymes that are elevated
and associated with hypermethylation found in alcohol-associated
hepatitis (AH) patients. Larsucosterol is in clinical development
for the potential treatment of AH, for which the FDA has granted a
Fast Track and a Breakthrough Therapy designation; metabolic
dysfunction-associated steatohepatitis (MASH) is also being
explored. In addition, POSIMIR (bupivacaine solution) for
infiltration use, a non-opioid analgesic utilizing the innovative
SABER platform technology, is FDA-approved and is exclusively
licensed to Innocoll Pharmaceuticals for sale and distribution in
the United States.
San Francisco, Calif.-based Ernst & Young LLP, the Company's
auditor since 1998, issued a "going concern" qualification in its
report dated March 28, 2024, citing that the Company has an
accumulated deficit as well as negative cash flows from operating
activities and has stated that substantial doubt exists about the
Company's ability to continue as a going concern.
As of September 30, 2024, DURECT Corporation had $24.1 million in
total assets, $22.8 million in total liabilities, and $1.2 million
in total stockholders' deficit.
DURECT CORP: Reports $4.3 Million Net Loss in Fiscal Q3
-------------------------------------------------------
DURECT Corporation filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $4.3 million on $1.9 million of total revenue for the three
months ended September 30, 2024, compared to a net loss of $3
million on $1.7 million of total revenue for the three months ended
September 30, 2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $15.6 million on $5.9 million of total revenue,
compared to a net loss of $26.1 million on $5.9 million of total
revenue for the same period in 2023.
As of September 30, 2024, the Company had $24.1 million in total
assets, $22.8 million in total liabilities, and $1.2 million in
total stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/mryyypkk
About DURECT Corporation
Headquartered in Cupertino, Calif., DURECT is a late-stage
biopharmaceutical company pioneering the development of epigenetic
therapies that target dysregulated DNA methylation to transform the
treatment of serious and life-threatening conditions, including
acute organ injury and cancer. Larsucosterol, DURECT's lead drug
candidate, binds to and inhibits the activity of DNA
methyltransferases (DNMTs), epigenetic enzymes that are elevated
and associated with hypermethylation found in alcohol-associated
hepatitis (AH) patients. Larsucosterol is in clinical development
for the potential treatment of AH, for which the FDA has granted a
Fast Track and a Breakthrough Therapy designation; metabolic
dysfunction-associated steatohepatitis (MASH) is also being
explored. In addition, POSIMIR (bupivacaine solution) for
infiltration use, a non-opioid analgesic utilizing the innovative
SABER platform technology, is FDA-approved and is exclusively
licensed to Innocoll Pharmaceuticals for sale and distribution in
the United States.
San Francisco, Calif.-based Ernst & Young LLP, the Company's
auditor since 1998, issued a "going concern" qualification in its
report dated March 28, 2024, citing that the Company has an
accumulated deficit as well as negative cash flows from operating
activities and has stated that substantial doubt exists about the
Company's ability to continue as a going concern.
EARTH SCIENCE: Reports $798,368 Net Income in Fiscal Q2
-------------------------------------------------------
Earth Science Tech, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net income of $798,368 on $8,519,047 of revenues for the three
months ended September 30, 2024, compared to a net income of
$444,581 on $1,927,720 of revenues for the three months ended
September 30, 2023.
For the six months ended September 30, 2024, the Company reported a
net income of $1,874,622 on $17,087,965 of revenues, compared to a
net income of $357,372 on $2,147,654 of revenues for the same
period in 2023.
As of September 30, 2024, the Company had $5,049,628 in total
assets, $1,848,496 in total liabilities, and $3,201,132 in total
stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3up6y7yu
About Earth Science Tech
Miami, Fla.-based Earth Science Tech, Inc. was incorporated under
the laws of the State of Nevada on April 23, 2010, subsequently
changed to the State of Florida on June 27, 2022. As of November 8,
2022, the Company is a holding entity set to acquire companies with
its current focus in the health and wellness industry. The Company
is presently in compounding pharmaceuticals and telemedicine
through its wholly owned subsidiaries RxCompoundStore.com, LLC.,
Peaks Curative, LLC., and Earth Science Foundation, Inc.
Boca Raton, Fla.-based R. Bolko, CPA P.A, the Company's auditor
since 2022, issued a "going concern" qualification in its report
dated April 16, 2024, citing that the Company has suffered negative
cash flows and has a significant accumulated deficit. These factors
raise substantial doubt about the Company's ability to continue as
a going concern.
EBIX INC: Egan-Jones Withdraws BB- Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on November 4, 2024, withdrew its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Ebix, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Atlanta, Georgia, Ebix, Inc. operates as software
company.
ECHOSTAR CORP: Egan-Jones Lowers Senior Unsecured Ratings to B
--------------------------------------------------------------
Egan-Jones Ratings Company on November 12, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by EchoStar Corporation to B from B+. EJR also withdrew
the rating on commercial paper issued by the Company.
Headquartered in Englewood, Colorado, EchoStar Corporation operates
satellite communication infrastructures.
EDGIO INC: Akamai Completes Select Asset Acquisition in Chapter 11
------------------------------------------------------------------
Akamai Technologies, Inc., the cybersecurity and cloud computing
company that powers business online, announced that it has
completed its acquisition of select assets from Edgio, including
certain customer contracts from Edgio's businesses in content
delivery and security, and non-exclusive license rights to patents
in Edgio's portfolio. On Nov. 26, 2024, the U.S. Bankruptcy Court
for the District of Delaware approved Akamai's bid to acquire the
aforementioned assets following Edgio's 363 bankruptcy auction on
Nov. 13, 2024, as part of its filing for Chapter 11 bankruptcy
relief. The transaction does not include the acquisition of Edgio
personnel, technology, or assets related to the Edgio network.
Akamai can now offer several hundred net new Akamai customers a
clear path and the necessary support to smoothly migrate to a
best-in-class and reliable provider of the services they need prior
to Edgio ceasing operations of its content delivery network. The
Company also plans to offer the new customers the opportunity to
take advantage of Akamai's full range of security and cloud
solutions, which run on the world's most distributed platform.
About Akamai
Akamai is the cybersecurity and cloud computing company that powers
and protects business online. Our market-leading security
solutions, superior threat intelligence, and global operations team
provide defense-in-depth to safeguard enterprise data and
applications everywhere. Akamai's full-stack cloud computing
solutions deliver performance and affordability on the world's most
distributed platform. Global enterprises trust Akamai to provide
the industry-leading reliability, scale, and expertise they need to
grow their business with confidence. Learn more at akamai.com and
akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.
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.
EEGEE'S LLC: Sec. 341(a) Meeting of Creditors on January 7
----------------------------------------------------------
On December 6, 2024, Eegee's LLC filed Chapter 11 protection in the
District of Arizona. According to court documents, the Debtor
reports between $10 million and $50 million in debt owed to 100 and
199 creditors. The petition states that funds will be available to
unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on January 7,
2025 at 10:30 AM, TELEPHONIC MEETING.
About Eegee's LLC
Eegee's LLC owns and operates a fast-food restaurant.
Eegee's LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Ariz. Case No. 24-10470) on December 6, 2024. In
the petition filed by Christopher Westcott, as CEO, the Debtor
reports estimated assets and liabilities between $10 million and
$50 million each.
Honorable Bankruptcy Judge Brenda K. Martin handles the case.
The Debtor is represented by:
Patrick Keery, Esq.
KEERY MCCUE, PLLC
6803 E. Main Street Suite 1116
Scottsdale AZ 85251
Tel: (480) 478-0709
E-mail: pfk@keerymccue.com
The Debtor's Financial Advisor is GETZLER HENRICH & ASSOCIATES,
LLC.
EKSO BIONICS: Armistice Capital Holds 9.99% Equity Stake
--------------------------------------------------------
Armistice Capital, LLC and Steven Boyd disclosed in a Schedule
13G/A Report filed with the U.S. Securities and Exchange Commission
that as of September 30, 2024, they beneficially owned an aggregate
amount of 105,743 shares of Ekso Bionics Holdings, Inc.'s Common
Stock, representing 9.99% of the shares outstanding.
Armistice Capital, LLC is the investment manager of Armistice
Capital Master Fund Ltd., the direct holder of the Shares, and
pursuant to an Investment Management Agreement, Armistice Capital
exercises voting and investment power over the securities of the
Company held by the Master Fund and thus may be deemed to
beneficially own the securities of the Company held by the Master
Fund. Mr. Boyd, as the managing member of Armistice Capital, may be
deemed to beneficially own the securities of the Company held by
the Master Fund. The Master Fund specifically disclaims beneficial
ownership of the securities of the Company directly held by it by
virtue of its inability to vote or dispose of such securities as a
result of its Investment Management Agreement with Armistice
Capital.
Armistice Capital, LLC may be reached at:
Steven Boyd
c/o Armistice Capital, LLC
510 Madison Avenue, 7th Floor
New York, New York 10022
United States of America
Tel: (212) 231-4932
A full-text copy of Armistice Capital's SEC Report is available
at:
https://tinyurl.com/3xrhrdya
About Ekso Bionics Holdings
San Rafael, Calif.-based Ekso Bionics Holdings, Inc. designs,
develops, and markets exoskeleton products to augment human
strength, endurance, and mobility.
San Francisco, Calif.-based WithumSmith+Brown PC, the Company's
auditor since 2010, issued a 'going concern' qualification in its
report dated March 4, 2024, citing that the entity has an
accumulated deficit at December 31, 2023, and, since inception, has
suffered significant operating losses and negative cash flows from
operations that raise substantial doubt about its ability to
continue as a going concern.
For the years ended December 31, 2023, and 2022, Ekso reported net
losses of $15.2 million and $15.1 million, respectively. As of
September 30, 2024, Ekso Bionics Holdings had $29.2 million in
total assets, $14.3 million in total liabilities, and $14.9 million
in total stockholders' equity.
ENSONO INTERMEDIATE: S&P Rates New First-Lien Term Loan 'B-'
------------------------------------------------------------
S&P Global Ratings lowered its issue-level rating on Ensono
Intermediate HoldCo Inc. (B-/Stable) proposed upsized first-lien
term loan to 'B-' from 'B' and revised its recovery rating to '3'
from '2'. The '3' recovery rating indicates its expectation for
meaningful (50%-70%; rounded estimate: 55%) recovery for
debtholders in the event of a payment default. Pro forma for the
$200 million fungible add-on, the company's first lien term loan
will increase to $1.246 billion.
S&P said, "The downgrade reflects our view that an increase in the
company's first-lien claims will reduce the recovery prospects for
its first-lien lenders. We expect the transaction will provide
Ensono with about $4 million of cash interest savings annually
based on indicative pricing estimates of SOFR +400, which we view
as modestly credit positive because it will help improve the
company's free operating cash flow (FOCF) generation. The company
plans to use the proceeds from this fungible add-on to repay its
existing second-lien term loan and add cash to its balance sheet.
The company also plans to extend is revolver maturity by 18 months
to November 2027.
"Our 'B-' issuer-credit rating is unchanged and reflects our
expectation that the company will continue increase its revenue,
expand its EBITDA margins, and sequentially improve its FOCF,
which--alongside the improvement in its liquidity position--will
enable to it to sustain its growth strategy and capital
structure."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- Following the proposed transaction, Ensono's debt
capitalization will comprise a $125 million account receivable
securitization facility due 2025, an undrawn $100 million revolving
credit facility due 2027 and a $1.246 billion first-lien term loan
B due 2028.
-- Ensono Inc. is the borrower under the first-lien credit
facilities. The debt is guaranteed by all current and future
material domestic subsidiaries. The debt will be secured with a
first-priority lien on substantially all current and future assets
of the borrower and guarantors. In S&P's analysis, it assumes the
borrower and guarantor entities account for sustainably all of its
emergence enterprise value.
-- S&P's simulated default scenario contemplates lower demand for
mainframe solutions and heightened competitive pressures for
managed services and third-party cloud solutions that lead to
increased churn and pricing pressures and erode the company's
profitability. This would reduce Ensono's cash flow to the point
that it cannot cover its fixed charges (interest expense, required
amortization, and minimum maintenance capital expenditure),
eventually leading to a default in 2027.
-- Other default assumptions include an 85% draw on the revolving
credit facility and 60% draw on the accounts receivable facility;
the spread on the revolving credit facility rises to 5% as covenant
amendments are obtained, and all debt includes six months of
prepetition interest.
-- S&P values the company on a going-concern basis using a 6x
multiple of its projected emergence EBITDA to reflect its customer
relationships and strong demand prospects for IT managed services.
Simulated default assumptions
-- Simulated year of default: 2027
-- EBITDA at emergence: $153.6 million
-- EBITDA multiple: 6x
Simplified waterfall
-- Gross recovery value: $921 million
-- Net recovery value (after 5% administrative expenses): $875
million
-- Obligor/nonobligor valuation split: 90%/10%
-- Priority claims: $90 million
-- Collateral value available to first-lien claims: $767 million
-- Unpledged value (not collateral): $30 million
-- Estimated senior secured first-lien debt: $1.376 billion
--Recovery expectations: 50%-70% (rounded estimate: 55%)
Note: All debt amounts include six months of prepetition interest
ENVIROSCENT INC: Gets OK to Use Cash Collateral Until Jan. 7
------------------------------------------------------------
Enviroscent, Inc. received interim approval from the U.S.
Bankruptcy Court for the Northern District of Georgia, Atlanta
Division, to use cash collateral until Jan. 7 next year.
The company requires the use of cash collateral to pay operating
expenses, including insurance, taxes and compensation for its
employees.
First Corporation Solutions as representative and Alterna Capital
Solutions, LLC may assert a security interest in the company's
cash. As adequate protection, both will be granted security
interest in, and liens on all post-petition assets of the company.
The next hearing is set for Jan. 7.
About Enviroscent, Inc.
Enviroscent, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-62804) on December 3,
2024. In the petition signed by Kevin Coen, chief executive
officer, the Debtor disclosed up to $50 million in assets and up to
$10 million in liabilities.
Judge Jeffery W. Cavender oversees the case.
Cameron M. McCord, Esq., at Jones and Walden LLC, represents the
Debtor as legal counsel.
ERNIE'S AUTO: Unsecured Creditors to Split $760K over 5 Years
-------------------------------------------------------------
Ernie's Auto Detailing, Inc., submitted a Fourth Amended Small
Business Plan of Reorganization dated November 13, 2024.
The Debtor will make quarterly installments ranging from $10,000 to
$100,000 for a five-year period for distributions to impaired
unsecured creditors. Distributions will total no less than $116,500
annually and $760,000 over the life of the plan.
Buenaventura Decena (a/k/a "Mr. Decena" or "Ernie") will sell
$100,000 of assets to be contributed to the estate. The $50,000
will be contributed towards the plan and $50,000 towards his
$224,000 loan from the Debtor. Administrative expenses are to be
paid directly from the Debtor, outside of the plan payments. On or
about October 9, 2024, the Debtor and the Acting Secretary of
Labor, United States Department of Labor (the "DOL") entered into a
consent order (the "Consent Order") resolving the DOL's objection
to the Debtor’s plan of reorganization.
Therefore, $760,000 will be distributed first to satisfy priority
claims ($73,451) with the remainder of plan contributions towards
general unsecured claims on a pro rata basis. Mr. Decena will also
execute a promissory note in the amount of $174,000.00 to reimburse
the Debtor for his balance of his personal loan. In exchange for
receipt of distributions, creditors will release the reorganized
debtor of any further liability except for its obligations set
forth in this plan of reorganization.
The IRS has filed a priority claim in the amount of $43,327.66
(claim no.4-3) for corporate and withholding taxes and New Jersey
Taxes (1041) are $21,477.69 (claim no. 5-2). New Jersey filed an
additional priority claim in the amount of $4,210.82 (claim no.
23-2). The Debtor will pay all allowed expenses in ninety days of
Effective Date from the Debtor's plan contributions.
The NY Department of Labor has filed a priority claim in the amount
of $681.69 (claim no. 24-1). The NY Department of Labor filed an
amended priority claim in the amount of $4,435 (claim no. 24-2).
The Debtor will pay all allowed expenses in ninety days of
Effective Date from the Debtor's plan contributions.
Class 1 consists of General Unsecured Claims. The Debtor will pay
all Allowed General Unsecured Claims in Quarterly installments over
a five-year period commencing on the Effective Date as follows: (i)
$20,000 on September 30th (ii) $15,000 on December 31st; (iii)
$7,500 on March 30th; and $17,500 on June 30th The figures above
will increase at a rate of 5% per annum commencing September 30th,
2024.
The Debtor will collect the approximately $100,000 from Ernie
within ninety days of confirmation towards his $224,000 note. The
remainder of plan payments will come from revenues from the
Debtor's on going business operations.
On Confirmation of the Plan, all property of the Debtor will
revert, free and clear of all Claims except as provided in the
Plan, to the Debtor. The Debtor expects to have sufficient cash on
hand to make all administrative payments required in the Plan.
Priority claims will be paid first from Mr. Decena's contribution
with the remainder to be paid to unsecured creditors on a pro rata
basis.
A full-text copy of the Fourth Amended Plan dated November 13, 2024
is available at https://urlcurt.com/u?l=alNcmH from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Donald F. Campbell, Jr., Esq.
Giordano, Halleran & Ciesla, P.C.
125 Half Mile Road, Suite 300
Red Bank, NJ 07701
Tel: 732 741 3900
About Ernie's Auto
Ernie's Auto Detailing, Inc., provides auto detailing services for
automotive dealerships in New York and New Jersey. The Debtor
filed a Chapter 11 bankruptcy petition (Bankr. D.N.J. Case No.
21-19015) on Nov. 22, 2021. Donald F. Campbell, Jr., of GIORDANO,
HALLERAN & CIESLA, P.C., is the Debtor's counsel.
EXTREME RESIDENTIAL: Files Subchapter V Bankruptcy in Georgia
-------------------------------------------------------------
On December 5, 2024, Extreme Residential S.E. Inc. filed Chapter 11
protection in the Northern District of Georgia. According to court
filing, the Debtor reports between $1 million and $10 million in
debt owed to 1 and 10 creditors. The petition states that funds
will be available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on January 6,
2025 at 10:00 AM via Telephone conference. To attend, Dial
888-902-9750 and enter participation code 9635734.
About Extreme Residential S.E. Inc.
Extreme Residential S.E. Inc., formerly known as Blue Horizon USA
Inc., provides premium quality and efficient energy management and
indoor air conditioning, providing not only a service but also 360
support.
Extreme Residential S.E. Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No.
24-62902) on December 5, 2024. In the petition filed by William R.
Hires, as CEO, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
Honorable Bankruptcy Judge James R. Sacca handles the case.
The Debtor is represented by:
Paul Reece Marr, Esq.
PAUL REECE MARR, P.C.
6075 Barfield Road, Suite 213
Sandy Springs, GA 30328-4402
Tel: (770) 984-2255
Fax: (678) 623-5109
E-mail: paul.marr@marrlegal.com
EYENOVIA INC: Raises $1.95-Mil. in Shares Sale, to Pay Off Lender
-----------------------------------------------------------------
Eyenovia, Inc., disclosed in a Form 8-K filed with the U.S.
Securities and Exchange Commission that the Company on December 5,
2024, entered into a securities purchase agreement with an
institutional investor, pursuant to which the Company agreed to
sell, in a registered direct offering by the Company, 11,000,000
shares of common stock, par value $0.0001 per share, pre-funded
warrants to purchase up to 9,085,025 shares of Common Stock and
warrants to purchase up to 40,170,050 shares of Common Stock.
The combined offering price for each Share and accompanying
Warrants is $0.0969. The combined offering price for each
Pre-Funded Warrant and accompanying Warrants is $0.0968, which is
equal to the purchase price per Share in the Offering, minus
$0.0001.
The Warrants will be exercisable upon receipt of approval of the
Company's stockholders in accordance with the applicable rules and
regulations of The Nasdaq Capital Market, and may be exercised for
five years from the initial exercisability date at an exercise
price of $0.0969 per share. The Company has agreed to hold an
annual or special meeting of stockholders on or prior to the date
that is 90 days following the date of issuance of the Warrants for
the purpose of obtaining such approval.
The exercise price and number of shares of Common Stock issuable
upon exercise of the Warrants will be subject to adjustment in the
event of stock dividends, stock splits, reorganizations or similar
events affecting our Common Stock. The Warrants will be issued in
certificated form only. A holder may not exercise any portion of
such holder's Warrants to the extent that the holder would own more
than 4.99% of the Company's outstanding Common Stock immediately
after exercise (unless the holder otherwise elects a limitation of
9.99%).
The Pre-Funded Warrants will be immediately exercisable at an
exercise price of $0.0001 per share and will be exercisable until
the Pre-Funded Warrants are exercised in full. The exercise price
and number of shares of Common Stock issuable upon exercise of the
Pre-Funded Warrants will be subject to adjustment in the event of
stock dividends, stock splits, reorganizations or similar events
affecting the Company's Common Stock. The Pre-Funded Warrants will
be issued in certificated form only. A holder may not exercise any
portion of such holder's Pre-Funded Warrants to the extent that the
holder would own more than 4.99% of the outstanding Common Stock
immediately after exercise (unless the holder otherwise elects a
limitation of 9.99%).
The Purchase Agreement contains customary representations,
warranties and agreements by the Company, customary conditions to
closing and indemnification obligations of the Company and the
purchaser. The representations, warranties and covenants contained
in the Purchase Agreement were made only for purposes of the
Purchase Agreement and as of a specific date, were solely for the
benefit of the parties to the Purchase Agreement and may be subject
to limitations agreed upon by the contracting parties.
The aggregate gross proceeds to the Company from the Offering are
expected to be approximately $1.95 million. The Company intends to
use the net proceeds from the Offering for working capital and
general corporate purposes, which may include the partial repayment
of amounts outstanding under the Loan and Security Agreement with
Avenue Capital Management II, L.P. and related entities, and, to
the extent possible, advancement of the Company's next generation
Optejet device, commercialization activities for Mydcombi and
clobetasol propionate, and the exploration and pursuit of strategic
alternatives.
The Offering is being made pursuant to an effective registration
statement on Form S-3 (Registration Statement No. 333-282458), as
previously filed with and declared effective by the Securities and
Exchange Commission (the "SEC"), and a related prospectus. The
Offering is expected to close on or about December 9, 2024, subject
to the satisfaction of customary closing conditions.
The Company has engaged Chardan Capital Markets, LLC as placement
agent for the Offering. The Company has agreed to pay customary
placement fees and reimburse certain expenses of the placement
agent.
Michael Rowe, Chief Executive Officer of Eyenovia, stated, "We
expect the funds from this offering, together with our previously
announced restructuring that is intended to right-size our
organization, to allow us to continue to advance the development of
our Gen-2 Optejet device, with the goal of registering that device
in the United States in the third quarter of 2025. We are now
focused on expanding the capabilities of the Gen-2 device, such
that it can be consumer-filled with standard eye drops such as
artificial tears that could be marketed without the need for
additional clinical studies. In addition to these internal
development initiatives, the Optejet is generating significant
interest among potential strategic partners, and we are engaged in
productive discussions with multiple parties, including our lender,
Avenue Capital. I remain optimistic as we continue to work to
maximize the value of the Gen-2 device and Eyenovia as a whole."
A full-text copy of the Form 8-K is available at
https://urlcurt.com/u?l=HPUjdG
About Eyenovia
New York, N.Y.-based Eyenovia, Inc. is an ophthalmic technology
company commercializing Mydcombi (tropicamide and phenylephrine HCL
ophthalmic spray) for inducing mydriasis for routine diagnostic
procedures and in conditions where short-term pupil dilation is
desired, preparing for the commercialization of clobetasol
propionate ophthalmic suspension 0.05% ("clobetasol propionate"),
for the treatment of post-operative inflammation and pain following
ocular surgery, and developing the Optejet delivery system both for
use in combination with its own drug-device therapeutic programs
and for out-licensing for use in combination with therapeutics for
additional indications. The Company's aim is to improve the
delivery of topical ophthalmic medication through the ergonomic
design of the Optejet, which facilitates ease-of-use and delivery
of a more physiologically appropriate medication volume, with the
goal to reduce side effects and improve tolerability and introduce
digital health technology to improve therapy compliance and
ultimately medical outcomes.
In its Quarterly Report for the three months ended September 30,
2024, Eyenovia reported that it had unrestricted cash and cash
equivalents of approximately $7.2 million and an accumulated
deficit of approximately $175.4 million as of September 30, 2024.
For the nine months ended September 30, 2024 and 2023, the Company
used cash in operations of approximately $24.0 million and $17.5
million, respectively. The Company does not have recurring
significant revenue and has not yet achieved profitability. The
Company expects to continue to incur cash outflows from operations
for the near future. The Company expects that it will continue to
incur significant research and development and selling, general and
administrative expenses and, as a result, it will eventually need
to generate significant product revenues to achieve profitability.
These circumstances raise substantial doubt about the Company's
ability to continue as a going concern for at least one year.
For the years ended December 31, 2023 and 2022, Eyenovia incurred
net losses of approximately $27.3 million and $28 million,
respectively.
FINTHRIVE SOFTWARE: DoubleLine ISF Marks $2.2MM Loan at 56% Off
---------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $2,205,000 loan
extended to FinThrive Software Intermediate Holdings, Inc to market
at $970,663 or 44% of the outstanding amount, according to a
disclosure contained in DoubleLine ISF's Amended Form N-CSR for the
six-month period ended September 30, 2024, filed with the U.S.
Securities and Exchange Commission.
DoubleLine ISF is a participant in a Senior Secured Second Lien
Term Loan to FinThrive Software Intermediate Holdings, Inc. The
loan accrues interest at a rate of 12.11% (3 Month term SOFR+
6.75%) per annum. The loan matures on December 17, 2028.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
FinThrive is a provider of revenue cycle management software
solutions to the healthcare sector.
FLEXJET INC: Moody's Assigns 'B1' CFR, Outlook Stable
-----------------------------------------------------
Moody's Ratings assigned ratings to Flexjet, Inc. (combined with
operating subsidiaries, "Flexjet") including a B1 corporate family
rating and a B1-PD probability of default rating. At the same time,
Moody's assigned a B3 rating to the planned $500 million 5-year
senior unsecured notes issuance of OneSky Flight, LLC, a
wholly-owned subsidiary of Flexjet, Inc. The outlooks of both
companies are stable.
Proceeds from the planned $500 million senior unsecured notes
issuance, along with a $427 million draw on its new $600 million
warehouse facility (not rated), will be used to refinance existing
aircraft and real estate debt, fund a $300 million dividend to
shareholders, put $100 million of cash on the balance sheet and pay
fees and expenses. The debt-financed dividend is a governance
consideration and a key driver of the rating.
Moody's project Flexjet's pro forma debt/EBITDA at November 30,
2024 to approximate 4.8x before improving to around 4.5x at the end
of 2025 driven by mid- to high-single digit revenue growth with an
EBITDA margin of about 15%. Revenue and earnings growth will be
supported by improving demand for private aviation from a growing
pool of ultra-high net worth individuals in the US. Moody's project
demand growth will moderate after a period of strong growth
following the pandemic; however, Flexjet's high customer retention
rates from a diversified customer base will help provide a
continued base of demand.
RATINGS RATIONALE
Flexjet's B1 CFR reflects its good competitive standing within the
fragmented private aviation industry, underpinned by the company's
broad brand portfolio, a well-established #2 market position among
(in terms of US private aviation market flight hours), and
non-unionized pilot relationships. While there are low barriers to
entry in the private charter segment of this industry, there are
barriers to achieving scale comparable to Flexjet's fleet of
approximately 300 aircraft and the company's in-house maintenance
abilities. The company's long-term contracted nature of its
fractional sales and leases business also provides additional
credit support. The company's rating is constrained by the cyclical
nature of private aviation and its private equity ownership
(private equity maintains 25% ownership of the company's common
equity). Aircraft capex requirements could pressure free cash flow
in periods of softening demand and are a constraint on the rating.
Moody's note that the company has a modest level of maintenance
capex.
The stable outlook reflects the company's adequate liquidity and
Moody's view that earnings will grow resulting in debt/EBITDA being
sustained between 4.0x and 4.5x.
Flexjet has adequate liquidity with cash of about $111 million, pro
forma for the transaction, and about $423 million of availability
under its two facilities as of November 30, 2024. The company has a
$250 million revolving credit facility that expires in June 2028
and a $600 million 4-year warehouse facility with a two-year
availability period and two-year term period. Free cash flow after
total capex will be modest. The company is subject to a fixed
charge coverage and asset coverage ratio under its revolving credit
facility, and Moody's expect Flexjet to be able to comfortably
comply with these covenants.
The senior unsecured notes are rated B3, two notches below the CFR.
The down notching reflects the application of Moody's Loss Given
Default for Speculative-Grade Companies methodology and the
significant amount of secured debt in the capital structure.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded if there is a meaningful decline in
demand for private aviation. Further, future debt-funded
distributions to shareholders and an ownership structure more
skewed towards private equity ownership could be other potential
downgrade factors. Ratings could also be pressured if debt/EBITDA
is sustained above 5.0x or if the company is unable to generate
positive free cash flow.
Headquartered in Cleveland, OH, Flexjet, Inc. is a full-service
global business aviation provider that serves corporate and high
net worth individuals. The company offers a range of services that
include fractional aircraft sales, fractional aircraft leasing,
prepaid jet cards, on-demand charter, aircraft management and
maintenance and repair services in the United States and Europe.
The company owned and managed fleet consisting of about 300
aircraft as of September 2024, including small cabin,
mid/super-mid, large cabin/ultra-long-range and helicopters. The
company is majority owned by management, Eldridge Industries, as
well as other co-investors. The company generated revenues of
approximately $2.6 billion for the 12 months ended September 30,
2024.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
FMC TECHNOLOGIES: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on November 14, 2024, maintained its
'BB' local currency senior unsecured ratings on debt issued by FMC
Technologies, Inc.
Headquartered in Houston, Texas, FMC Technologies, Inc. provides
oilfield services and equipment.
FORMER CHARTER: Egan-Jones Retains BB Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on November 15, 2024, maintained its
'BB' local currency senior unsecured ratings on debt issued by
Former Charter Communications Parent, Inc.
Headquartered in Stamford, Connecticut, Former Charter
Communications Parent, Inc. offers broadband Internet
communications services.
FTX TRADING: El-Razek Case Won't Proceed to Mediation
-----------------------------------------------------
Magistrate Judge Christopher J. Burke of the United States District
Court for the District of Delaware has determined that mediation is
not appropriate in the case captioned as AHMED ABD EL-RAZEK, SUNIL
KAVURI and PAT RABBITTE, Appellants, v. FTX TRADING LTD., Appellee,
Civil Action No. 24-1178-CFC (D. Del.).
The Court conducted an initial review of this matter, including
having gathered information from the parties and their counsel, in
order to determine the appropriateness of mediation for the case.
The parties jointly agree that their disputes in this case cannot
be resolved through mediation and the Court agrees.
The Court recommends that the assigned District Judge issue an
order withdrawing the matter from mediation and setting the
following appellate briefing schedule (agreed to by the parties):
Opening Briefs: January 10, 2025
Responsive Briefs: February 24, 2025
Reply Briefs: March 17, 2025
A copy of the Court's decision is available at
http://urlcurt.com/u?l=rcTDys
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, option,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds an
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought
Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases. White
collar crime specialist Mark S. Cohen has reportedly been hired to
represent SBF in litigation. Lawyers at Paul Weiss previously
represented SBF but later renounced representing the entrepreneur
due to a conflict of interest.
FTX TRADING: Kihyuk Nam Case Won't Proceed to Mediation
-------------------------------------------------------
Magistrate Judge Christopher J. Burke of the United States District
Court for the District of Delaware has determined that mediation is
not appropriate in the case captioned as
KIHYUK NAM, Appellant, v. FTX TRADING LTD., Appellee, Civil Action
No. 24-1175-CFC (D. Del.)
The Court conducted an initial review of this matter, including
having gathered information from the parties and their counsel, in
order to determine the appropriateness of mediation for the case.
The parties jointly agree that their disputes in this case cannot
be resolved through mediation and the Court agrees.
The Court recommends that the assigned District Judge issue an
order withdrawing the matter from mediation and setting the
following appellate briefing schedule (agreed to by the parties):
Opening Brief: January 10, 2025
Responsive Brief: February 28, 2025
Reply Brief: March 21, 2025
A copy of the Court's decision is available at
http://urlcurt.com/u?l=OzAo9g
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, option,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds an
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought
Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases. White
collar crime specialist Mark S. Cohen has reportedly been hired to
represent SBF in litigation. Lawyers at Paul Weiss previously
represented SBF but later renounced representing the entrepreneur
due to a conflict of interest.
FTX TRADING: Layerzero, et al. Case Won't Proceed to Mediation
--------------------------------------------------------------
Magistrate Judge Christopher J. Burke of the United States District
Court for the District of Delaware has determined that mediation is
not appropriate in the case captioned as LAYERZERO LABS LTD., ARI
LITAN and SKIP & GOOSE, LLC, Appellants, v. FTX TRADING LTD.,
Appellee, Civil Action No. 24-1180-CFC (D. Del.).
The Court conducted an initial review of this matter, including
having gathered information from the parties and their counsel, in
order to determine the appropriateness of mediation for the case.
The parties jointly agree that their disputes in this case cannot
be resolved through mediation and the Court agrees.
The Court recommends that the assigned District Judge issue an
order withdrawing the matter from mediation and setting the
following appellate briefing schedule (agreed to by the parties):
Opening Brief: January 10, 2025
Answering Brief: February 28, 2025
Reply Brief: March 21, 2025
A copy of the Court's decision is available at
http://urlcurt.com/u?l=5lgOaZ
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, option,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds an
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought
Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases. White
collar crime specialist Mark S. Cohen has reportedly been hired to
represent SBF in litigation. Lawyers at Paul Weiss previously
represented SBF but later renounced representing the entrepreneur
due to a conflict of interest.
FTX TRADING: Melamed Case Won't Proceed to Mediation
----------------------------------------------------
Magistrate Judge Christopher J. Burke of the United States District
Court for the District of Delaware has determined that mediation is
not appropriate in the case captioned as SETH MELAMED, Appellant,
v. FTX TRADING LTD., Appellee, Civil Action No. 24-1176-CFC (D.
Del.).
The Court conducted an initial review of this matter, including
having gathered information from the parties and their counsel, in
order to determine the appropriateness of mediation for the case.
The parties jointly agree that their disputes in this case cannot
be resolved through mediation and the Court agrees.
The Court recommends that the assigned District Judge issue an
order withdrawing the matter from mediation and setting the
following appellate briefing schedule (agreed to by the parties):
Opening Briefs: January 10, 2025
Responsive Briefs: February 24, 2025
Reply Briefs: March 17, 2025
A copy of the Court's decision is available at
http://urlcurt.com/u?l=7xaBzf
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, option,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds an
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought
Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases. White
collar crime specialist Mark S. Cohen has reportedly been hired to
represent SBF in litigation. Lawyers at Paul Weiss previously
represented SBF but later renounced representing the entrepreneur
due to a conflict of interest.
G FAB INC: Case Summary & 16 Unsecured Creditors
------------------------------------------------
Debtor: G Fab Inc.
f/d/b/a G Fab LLC
581 Antelope Rd
White City, OR 97503
Business Description: G Fab is a specialty contractor that serves
the White City, OR area and specializes in
structural steel.
Chapter 11 Petition Date: December 12, 2024
Court: United States Bankruptcy Court
District of Oregon
Case No.: 24-62739
Judge: Hon. Thomas M Renn
Debtor's Counsel: Keith Y Boyd, Esq.
KEITH Y BOYD, PC
724 S Central Ave 106
Medford, OR 97501
Tel: (541) 973-2422
E-mail: keith@boydlegal.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Tracey Glenn as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 16 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/QWPA42Y/G_Fab_Inc__orbke-24-62739__0001.0.pdf?mcid=tGE4TAMA
GARCIA PROPERTY: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------------
Garcia Property Group II, Inc. asked the U.S. Bankruptcy Court for
the Southern District of Florida, Miami Division, for authority to
use cash collateral and provide adequate protection.
Currently, the Debtor has pending litigation in Ohio at the
Cuyahoga County Housing Court for failure to record the corporation
in the Ohio register to conduct business in the state and for other
various code violations related to the properties. The Debtor seeks
to utilize this bankruptcy case to conduct a structured liquidation
of its properties in Cuyohoga County, Ohio and provide 100%
repayment to all allowed claims. The properties are currently
encumbered by two mortgages which are held by PHH Mortgage; one
mortgage secured only by the property identified 9511 Reno Avenue,
and a second mortgage which is secured by the
cross-collateralization of the other properties.
The Debtor requires cash collateral for the payment of, inter alia,
operating expenses, utilities, property management fees, appraisal
fees, inspection fees, and any other expense necessary to conduct
business and conduct the sale of the properties.
The secured creditor, while holding a secured mortgage lien over
the properties, would maintain its interests and be protected
through the Debtor's adequate protection payment. The amount of the
adequate protection payment will be determined with PHH's
representative, and a motion seeking an Order establishing the same
until the completion of the sale of the properties will be filed in
the near future.
The Debtor projects $2,250 in total monthly expenses.
About Garcia Property Group
Garcia Property Group II, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
24-21766) on November 8, 2024, with $100,001 to $500,000 in assets
and liabilities.
Judge Laurel M. Isicoff presides over the case.
Christina Vilaboa-Abel, Esq., represents the Debtor as legal
counsel.
GARY R. CLASBY: Obtains Favorable Ruling in Fuller Case
-------------------------------------------------------
Judge Thomas B. McNamara of the United States Bankruptcy Court for
the District of Colorado entered a ruling in favor of the
Defendants and against the Plaintiffs on all claims asserted in the
case captioned as MATTHEW FULLER and CASSANDRA FULLER and
Plaintiffs, v. GARY R. CLASBY and KATHLEEN D. CLASBY, Defendants,
Adv. Pro. No. 23-1212 TBM (Bankr. D. Colo.)
The Plaintiffs, Matthew Fuller and Cassandra Fuller, are married
Indiana residents. As of the commencement of the Adversary
Proceeding, they resided in Goshen, Indiana.
The Defendants, Gary R. Clasby and Kathleen D. Clasby, are married
Colorado residents. They reside at 117 N. Candlewood Drive, Pueblo
West, Colorado.
Somewhere along the way the Defendants started GEM Homes of
Colorado, LLC, a Colorado limited liability company. According to
the Defendants' Statement of Financial Affairs, the Defendants both
worked with GEM Homes from December 2019 until they filed for
bankruptcy protection on June 16, 2023.
The Plaintiffs decided to build a house for themselves on the Muddy
Creek Property. They selected a home site on a high point which, at
the time, did not have an access road or driveway. The Plaintiffs
had no experience in home construction. Someone referred the
Plaintiffs to Mr. Clasby and GEM Homes. On April 25, 2020, GEM
Homes (acting through Mr. Clasby) provided the Plaintiffs with two
construction cost quotations.
After completion of the Access Road Project, the Plaintiffs decided
to proceed forward with the Home Construction Project on the Muddy
Creek Property.
On August 11, 2020, the Plaintiffs entered into a "Contractor
Agreement" with GEM Homes for the Home Construction Project.
Sometime after the First Contract was signed, the Plaintiffs sent
$51,000.00 (by wire transfer) to GEM Homes.
On October 22, 2021, the Plaintiffs' lawyer sent a demand letter to
GEM Homes. The Plaintiffs asked that GEM Homes: (1) reconvey title
to the Muddy Creek Property back to them free of all encumbrances;
(2) stop all on-site work that could result in mechanics liens; (3)
return the $51,000.00 already paid by the Plaintiffs; (4) repair
the access road; and (5) provide other relief. GEM Homes and Mr.
Clasby stopped work on the Home Construction Project.
On their Amended Schedule E/F, the Defendants identified the
Plaintiffs as holders of a "business debt" owed by the Defendants
in the amount of "unknown." The Plaintiffs did not assert that the
debt was "contingent," "unliquidated," or "disputed.
The Plaintiffs commenced this Adversary Proceeding by filing a
"Complaint to Determine Debt and Dischargeability of Debt and
Objection to Debtor's Discharge" on September 14, 2023. In the
Complaint, the Plaintiffs alleged that the Defendants are indebted
to the Plaintiffs in relation to a failed residential construction
project. Furthermore, the Plaintiffs asserted that such debt is
nondischargeable.
The Complaint states the following claims: (1) the First Claim for
Relief is for nondischargeability of the debt under Section
523(a)(2)(A) for "fraud and misrepresentation"; (2) the Second
Claim for Relief is for nondischargeability of debt under Section
523(a)(2)(A) for "false pretenses"; (3) the Third Claim for Relief
is for nondischargeability of debt under Section 523(a)(4) and
523(a)(6) for "defalcation while acting in a fiduciary capacity,"
"civil theft," and "willful and malicious injury"; (4) the Fourth
Claim for Relief is for nondischargeability of debt under Section
523(a)(2)(A) and assets that the Defendants "are liable for the
fraud of the other."
The Court determines that the Plaintiffs have not met their
preponderance of the evidence burden to show a "false
representation" or "actual fraud" under Section 523(a)(2)(A).
The Court determines that the Plaintiffs have not met their
preponderance of the evidence burden to show false pretenses under
Section 523(a)(2)(A).
The Plaintiffs have attempted to use the Trust Fund Statute as a
basis for nondischargeability under both Sections 523(a)(4) or
(a)(6). Section 523(a)(4) makes nondischargeable any debt "for
fraud or defalcation while acting in a fiduciary capacity,
embezzlement, or larceny." Of these statutory variants, the
Plaintiffs assert only that the Defendants committed "defalcation
while acting in a fiduciary capacity." The Trust Fund Statute
generally creates a statutory trust which "satisfies the technical
trust element of a fiduciary relationship necessary to establish a
Sec. 523(a)(4) claim."
The Court finds the Plaintiffs failed to meet the requirements for
establishing civil theft (and thus, treble damages). The Plaintiffs
seem to rely exclusively on the Trust Fund Statute as a basis for
alleging civil theft. But, since the Court already rejected a Trust
Fund Statute claim, the civil theft claim also fails. And, in any
event, the Plaintiffs did not come close to establishing the
required "two culpable mental states" for civil theft. Therefore,
again, the Plaintiffs did not establish a valid debt, the Court
concludes.
The Court finds that the Plaintiffs failed to satisfy the state of
mind requirement under Section 523(a)(4).
The Court determines that the Plaintiffs have not met their
preponderance of the evidence burden to show nondischargeability
under Section 523(a)(6).
The Court rejects the Fourth Claim for Relief because at this
stage, it is completely beside the point. The Court already has
determined that the Plaintiffs failed to establish a valid debt
against either of the Defendants and failed to establish that any
debt would be nondischargeable under Sections 523(a)(2)(A), (a)(4),
or (a)(6). So, there is no purpose served by trying to announce
that Mr. Clasby and Mrs. Clasby are liable for "each other's"
conduct.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=Gh6qeZ
Gary R. Clasby and Kathleen D. Clasby filed for Chapter 11
bankruptcy protection (Bankr. D. Colo. Case No. 23-12658) on
June 16, 2023, listing under $1 million in both assets and
liabilities. The Debtor is represented by David Warner, Esq.
GATEWAY CASINO: Silver Point Marks $4. 9MM Loan at 25% Off
----------------------------------------------------------
Silver Point Specialty Lending Fund has marked its $4,967,966 loan
extended to Gateway Casinos & Entertainment Ltdto market at
$3,704,448 or 75% of the outstanding amount, according to a
disclosure contained in Silver Point's Amended Form 10-Q for the
quarterly period ended September 30, 2024 filed with the Securities
and Exchange Commission.
Silver Point is a participant in a First Lien Term Loan to Gateway
Casinos & Entertainment Ltd. The loan accrues interest at a rate of
11.3% (C+8.30%,.75% Floor) per annum. The loan is scheduled to
mature on October 22, 2027.
Silver Point Specialty Lending Fund is an externally managed
closed-end management investment company that has elected to be
regulated as a business development company under the Investment
Company Act of 1940, as amended and was originally formed on July
31, 2014. Effective November 15, 2021, Silver Point changed its
name to Silver Point Specialty Lending Fund and converted to a
statutory trust organized under the laws of the State of Maryland.
Silver Point is an emerging growth company under the Jumpstart Our
Business Startups Act of 2012. For so long as Silver Point remains
an emerging growth company under the JOBS Act, it will be subject
to reduced public company reporting requirements.
Silver Point is led by Edward Mulé, Chief Executive Officer; and
Jesse Dorigo, Chief Financial Officer. The Fund can be reached
through:
Edward Mule
Silver Point Specialty Lending Fund
Maryland, Two Greenwich Plaza, Suite 1
Greenwich, CT, 06830
Tel: (203) 542-4200
Gateway, headquartered in Burnaby, British Columbia, Canada, is a
privately-owned gaming and entertainment company and second largest
non-government gaming operator in Canada. The company is
majority-owned (74%) by The Catalyst Capital Group Inc. (Catalyst),
a private equity firm. Tennebaum Capital Partners LLC is a minority
owner.
GG GLOBAL: Unsecured Creditors to Get Share of Income for 3 Years
-----------------------------------------------------------------
GG Global Logistics, LLC filed with the U.S. Bankruptcy Court for
the Middle District of Florida a Subchapter V Plan of
Reorganization dated November 13, 2024.
Global is a Florida limited liability company was originally
organized in New Jersey by in 2020 by the Jose Roberto De Godoi and
Genelva D. Godoi (husband and wife). Global provides freight
transport of household goods throughout the United States for a
fee. Debtor's assets and operations are located in Orlando,
Florida.
In June 2022, GGL entered into a loan arrangement with
Transportation Alliance Bank, Inc. ("TAB Bank") which is
collateralized by a 2023 Peterbilt 579 Tractor (the "Peterbilt"),
the main asset utilized in Debtor's business. On or around November
10, 2022, Genelva passed away leaving Jose and their son (Roberto
de Godoy) with the responsibility of managing the Debtor's
operation.
On July 26, 2024, TAB Bank filed a complaint for Replevin of the
Peterbilt claiming Genelva's passing was an event of default under
the loan. In addition to litigation by TAB Bank, GGL's operation
also suffered from reduced load payments, equipment breakdowns and
increased operating costs. Roberto and Jose elected to utilize the
Chapter 11 process to retain the Peterbilt, restructure GGL's debt
obligations, shed burdensome assets, and continue the Debtor's
operation.
Class 4 consists of all Allowed General Unsecured Claims against
the Debtor. As set forth in the Debtor's financial projections, the
Debtor's projected disposable income is $4,683.81. In full
satisfaction of the Allowed Class 2 General Unsecured Claims,
Holders of Class 4 Claims shall receive a pro rata share of
Distributions totaling $4,683.81 paid pursuant to the following
payment schedule, which payments shall commence on the Effective
Date:
* Quarters 1 through 4 (Plan Year 1): $390.32 per quarter.
* Quarters 5 through 8 (Plan Year 2): $390.32 per quarter.
* Quarters 9 through 12 (Plan Year 3): $390.32 per quarter.
In a liquidation scenario, the value received by holders of Allowed
Class 4 Claims would be $0.00. The maximum Distribution to Class 4
Claimholders shall be equal to the total amount of all Allowed
Class 4 General Unsecured Claims. Class 4 is Impaired.
Class 5 consists of all equity interests in GG Global Logistics,
LLC. Class 5 Interest Holders shall retain their respective
Interests in GG Global Logistics, LLC. in the same proportions such
Interests were held as of the Petition Date (i.e., 100.00% Interest
retained by Jose Roberto de Godoi). Class 5 is Unimpaired.
The Plan contemplates the Debtor will continue to manage and
operate its business in the ordinary course, but with restructured
debt obligations. It is anticipated the Debtor's postconfirmation
business will mainly involve continued operation of its freight
hauling business utilizing newer and less burdensome equipment, the
income from which will be committed to make the Plan Payments to
the extent necessary.
Funds generated from the Debtor's operations through the Effective
Date will be used for Plan Payments; however, the Debtor's cash on
hand as of Confirmation will be available for payment of
Administrative Expenses.
A full-text copy of the Subchapter V Plan dated November 13, 2024
is available at https://urlcurt.com/u?l=bu8KHU from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Daniel A. Velasquez, Esq.
Latham, Luna, Eden & Beaudine, LLP
201 S. Orange Ave., Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
Email: dvelasquez@lathamluna.com
About GG Global Logistics
GG Global Logistics, LLC, provides freight transport of household
goods throughout the United States for a fee.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-04377) on August 20,
2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Grace E. Robson presides over the case.
Daniel A. Velasquez, Esq., at Latham, Luna, Eden & Beaudine, LLP,
is the Debtor's legal counsel.
GREELEY FLATS: Gets OK to Use Cash Collateral Until April 1
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado approved a
stipulation authorizing Greeley Flats, DST's Chapter 11 trustee to
use the cash collateral of Fannie Mae.
Fannie Mae holds a first-priority, perfected security interest in
Greeley's real property in Colorado. Revenues, profits and
proceeds, including collected rents from the property constitute
Fannie Mae's cash collateral.
The stipulation allowed Bryan Perkinson, the court-appointed
bankruptcy trustee for Greeley Flats, to use the cash collateral
until the earlier of April 1, 2025, or the breach of any provision
of the stipulation by the trustee.
The trustee may spend cash collateral only for the purposes and in
the amounts set forth in the budget and pursuant to the
court-approved stipulation.
Fannie Mae was granted replacement liens on all post-petition
property acquired by Greeley Flats effective as of April 3, and a
superpriority claim for any diminution in value of its collateral.
These replacement liens are automatically perfected upon court
approval of the stipulation.
About Greeley Flats
Greeley Flats, DST, filed a Chapter 11 bankruptcy petition (Bankr.
D. Colo. Case No. 24-11573) on April 3, 2024. At the time of
filing, the Debtor disclosed up to $50 million in both assets and
liabilities. On September 23, 2024, the court appointed Bryan
Perkinson as the Chapter 11 trustee in this bankruptcy case.
Judge Kimberley H. Tyson oversees the case.
The Debtor tapped Tucker Ellis, LLP as bankruptcy counsel.
GRITSTONE BIO: Arranges Asset Sale Through Bankruptcy Court
-----------------------------------------------------------
Ron Leuty of San Francisco Business Times reports that Gritstone
Bio Inc., a cancer drug developer, will sell its assets to three
bidders through U.S. Bankruptcy Court, with approval from the judge
expected by December 20, 2024. The Company estimates cash proceeds
of approximately $21.25 million from the sale, excluding credit
bids from its creditors, the report says.
According to San Francisco Business Journal, Hercules Capital Inc.
(NYSE: HTGC), a Palo Alto firm that provided Gritstone with an $80
million, five-year loan in 2022, secured the company’s machinery
and equipment through a credit bid. Gritstone had previously drawn
$40 million from this loan.
Future Solutions Investments LLC, a post-bankruptcy lender,
successfully bid on Gritstone's intellectual property related to
"binders" for neoantigens, proteins produced by cancer cells due to
DNA mutations. Seattle Project Corp. acquired most of Gritstone's
remaining assets during a Bankruptcy Court auction held on December
12, 2024.
Despite operating a manufacturing facility in Pleasanton and
employing nearly 150 people, Gritstone sought Chapter 11 protection
to attract investors or a restructuring sponsor. However, the
company became another casualty of the life sciences sector's
ongoing funding challenges, driven by rising interest rates and
diminished investor enthusiasm for biotech's lengthy product
development cycles, the report states.
About Gritstone bio Inc.
Gritstone bio is developing next-generation vaccines for cancer and
infectious disease. Gritstone's approach seeks to generate potent
and durable immune responses by leveraging insights into the immune
system's ability to recognize and destroy diseased ells by
targeting select antigens.
Gritstone bio Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-12305) on October 10,
2024. In the petition filed by Celia Economides, chief financial
officer, the Debtor reports total assets as of August 31, 2024
amounting to $124,885,479 and total debts as of August 31, 2024
amounting to $40,000,000.
The Honorable Bankruptcy Judge Karen B. Owens handles the case.
The Debtor tapped Pachulski Stang Ziehl & Jones LLP as bankruptcy
counsel; Pricewaterhousecoopers LLP as financial advisor; and
Raymond James & Associates, Inc., as investment banker. Fenwick &
West LLP is the corporate counsel.
The U.S. Trustee appointed an official committee of unsecured
creditors appointed in this Chapter 11 case. The committee tapped
ArentFox Schiff LLP as counsel, Potter Anderson & Corroon LLP as
Delaware counsel, and FTI Consulting, Inc. as financial advisor.
GROUP RESOURCES: U.S. Trustee Seeks Chapter 11 Trustee Appointment
------------------------------------------------------------------
Mary Ida Townson, the U.S. Trustee for Region 21, asked the U.S.
Bankruptcy Court for the Northern District of Georgia to appoint a
trustee to take over the Chapter 11 case of Group Resources
Acquisitions, LLC and its affiliates.
The Debtors describe themselves as "third-party administrators for
single employers who have self-funded health plans, and provided
associated services such as stop loss placement and consulting."
Andrew Willoughby is the sole member or sole shareholder of each of
the Debtor entities.
The Debtors have alleged they needed to seek bankruptcy protection
after discovering their former chief financial officer embezzled
client funds and diverted revenues to himself resulting in Debtors
falling behind on a number of financial obligations.
The U.S. Trustee noted that she seeks the appointment of a Chapter
11 trustee to replace the Debtors' current management.
In a court filing, the U.S. Trustee raised the need to appoint an
independent trustee to manage the case, saying the companies'
pre-petition diversion of funds to non-debtor accounts is cause to
appoint a Chapter 11 trustee. Mr. Willoughby's refusal to answer
questions regarding the Debtors’ financial affairs by invoking
his rights under the Fifth Amendment is cause to appoint a Chapter
11 trustee.
About Group Resources Acquisitions
Group Resources Acquisitions, LLC and its affiliates, Group
Resources of Iowa, LLC and Employee Benefits Concepts, Inc. filed
Chapter 11 petitions (Bankr. N.D. Ga. Case Nos. 24-59671, 24-59675
and 24-59673) on September 13, 2024. Another affiliate, Group
Resources Incorporated, filed for Chapter 11 bankruptcy protection
(Bankr. N.D. Ga. Case No. 24-59729) on Sept. 16, 2024. The cases
are jointly administered under Case No. 24-59671.
At the time of the filing, Group Resources Acquisitions reported up
to $10 million in assets and up to $50,000 in liabilities.
Judge Sage M. Sigler oversees the cases.
The Debtors are represented by Michael D Robl, Esq., at Robl Law
Group, LLC.
GUARDIAN ELDER: Seeks to Extend Plan Exclusivity to March 26, 2025
------------------------------------------------------------------
Guardian Elder Care at Johnstown, LLC d/b/a Richland Healthcare and
Rehabilitation Center, and its affiliates asked the U.S. Bankruptcy
Court for the Western District of Pennsylvania to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to March 26, 2025 and May 27, 2025,
respectively.
The Debtors explain that they are mindful of the time required to
close the Owned Facilities Sale, properly manage the winddown of
their pharmacy operations and address other pressing issues arising
in these cases, all of which are necessary predicates to the
Debtors' ability to formulate an appropriate path forward in these
cases. The Debtors thus seek an extension of the Exclusive Periods
so that the Debtors, in consultation with their key constituents,
can work to develop a viable path forward.
The Debtors claim that their progress in achieving their goals of
closing both the Cuarzo and Owned Facilities Sales, as well as the
speed in which the Debtors have made such progress, demonstrate
that they will likewise be able to approach the plan formulation in
an effective manner. The Debtors also submit that any proposed plan
will be structured so as to ensure a maximum recovery to the
Debtors' creditors and parties in interest and an orderly wind down
of the Debtors' estates.
The Debtors assert that they need additional time to focus on and
ensure closure on the sale of the Owned Facilities Sale and the
smooth transition of their operations in connection with the sales
and address the other significant issues. The requested extensions
of the Exclusive Periods will provide the Debtors with the time
needed to address these issues and thereby permit the Debtors to
focus on both resolving such issues in a manner that best serves
their estates and creditors and establishing a framework for a
viable path forward without the distraction of a looming
exclusivity deadline.
The Debtors further assert that they are not seeking this extension
to prejudice their creditors or to otherwise pressure creditors to
submit to reorganization demands. Instead, the Debtors seek the
requested extension so that they can maintain the status quo in
these Chapter 11 Cases while addressing the other significant
time-sensitive and potentially case dispositive issues. Thus,
because neither the Debtors' creditors nor any other party in
interest will be prejudiced by the proposed extension of the
Exclusive Periods, the Debtors submit that the relief requested
should be approved.
Lastly, although the Debtors hope to be in a position to file a
chapter 11 plan of liquidation within the extended Exclusive Filing
Period, the Debtors reserve the right to request further extensions
of the Exclusive Periods for cause.
The Debtors' Counsel:
Jeffrey C. Hampton, Esq.
Sabrina Espinal, Esq.
SAUL EWING LLP
1500 Market Street, 38th Floor
Philadelphia, PA 19102
Tel: (215) 972-7777
Email: jeffrey.hampton@saul.com
sabrina.espinal@saul.com
- and -
Michael J. Joyce, Esq.
SAUL EWING LLP
One PPG Place, Suite 3010
Pittsburgh, PA 15222
Tel: (412) 209-2539
Email: michael.joyce@saul.com
- and -
Mark Minuti, Esq.
Monique B. DiSabatno, Esq.
Paige N. Topper, Esq.
1201 N. Market Street, Suite 2300
Wilmington, DE 19801
Tel: (302) 421-6800
Email: mark.minuti@saul.com
monique.disabatino@saul.com
paige.topper@saul.com
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: Benjamin Mathes Appointed as New Committee Member
------------------------------------------------------------------
The U.S. Trustee for Region 7 appointed Benjamin Mathes as new
member of the official committee of unsecured creditors in the
Chapter 11 cases of H-Food Holdings, LLC and its affiliates.
The committee is now comprised of:
1. Archer Daniels Midland Co.
4666 Faries Parkway
Decatur, IL 62526
Representative: Mark Speiser
mark.speiser@adm.com
2. Applied Products, Inc.
6035 Baker Rd.
Minnetonka, MN 55345
Representative: Lance Knapp
lknapp@appliedproducts.com
3. Bunge North America, Inc.
1391 Timberlake Manor Pkwy
Chesterfield, MO 63017
Representative: Gregory Zemaitis
greg.zemaitis@bunge.com
4. National Sugar Marketing
100 Galleria Pkwy, Ste 1400
Atlanta, GA 30339
Representative: Sara Crowder
scrowder@natsugar.com
5. PepsiCo, Inc.
1100 Reynolds Blvd.
Winston-Salem, NC 27105
Representative: Matthew Neibart
matthew.neibart@pepsico.com
6. U.S. Bank Trust Co., Indenture Trustee
333 Commerce St., Ste 900
Nashville, TN 37201
Representative: Donna L. Williams
donna.williams5@usbank.com
7. Benjamin Mathes
c/o Jonathan Melmed
Melmed Law Group, PC
1801 Century Park East, Ste 850
Los Angeles, CA
Representative: Benjamin Mathes
b12133108@gmail.com
jm@melmedlaw.com
md@dundon.com
lms@melmedlaw.com
jyoung@sommerspc.com
About H-Food Holdings
H-Food Holdings, LLC, formerly known as Matterhorn Merger Sub, LLC,
was founded in 2009 in Grand Rapids, Mich. The company and its
affiliated debtors are a contract manufacturer of food products,
producing and supplying, among other things, nutrition bars, frozen
packaged foods, meal kits, snacks, sauces, refrigerated trays,
overwrap, custom packaging solutions, and more to customers. As the
largest food co-manufacturer in North America, the Debtors
manufacture some of the most valued and recognizable brands, and
the Debtors' key customers include many of the leading consumer
packaged goods customers in North America.
The Debtors filed Chapter 11 petitions (Bankr. S.D. Texas Lead Case
No. 24-90586) on Nov. 22, 2024, listing $1 billion to $10 billion
in both assets and liabilities. Robert M. Caruso, chief
restructuring officer, signed the petitions.
Judge Alfredo R. Perez presides over the cases.
The Debtors tapped Ropes & Gray, LLP as general bankruptcy counsel;
Porter Hedges, LLP as co-bankruptcy counsel; Evercore Group, LLC as
investment banker; and Alvarez & Marsal North America, LLC as
financial advisor.
HARADA FAMILY: Christy Brandon Named Subchapter V Trustee
---------------------------------------------------------
The Acting U.S. Trustee for Region 18 appointed Christy Brandon,
Esq., a practicing attorney in Bigfork, Mont., as Subchapter V
trustee for Harada Family Dental Care, P.C.
Ms. Brandon will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Brandon declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christy L. Brandon
P.O. Box 1544
Bigfork, MT 59911
Phone: (406) 837-5445
Email: christy@brandonlawfirm.com
About Harada Family Dental Care
Harada Family Dental Care, P.C. is a privately owned dental group.
Harada Family Dental Care filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Montana Case No.
24-40076) on Nov. 22, 2024, listing $73,202 in assets and
$1,174,825 in liabilities. The petition was signed by Christopher
W. Harada as president.
James A. Patten, Esq. at Patten, Peterman, Bekkedahl & Green
represents the Debtor as counsel.
HARE TAYLOR: Sec. 341(a) Meeting of Creditors on January 6
----------------------------------------------------------
On December 6, 2024, Hare Taylor LLC filed Chapter 11 protection in
the Northern District of Florida. 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 January 6,
2025 at 10:00 AM at/via with the U.S. Trustee by telephone at (877)
835-0364, Access Code 4662459.
About Hare Taylor LLC
Hare Taylor LLC, doing business as H & R Block and Block Advisors,
is a full-service accounting firm with offices in Panama City and
Chipley, Florida. The Company offers a broad range of services for
business owners, executives, and independent professionals.
Hare Taylor LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Fla. Case No. 24-50181) on December 6,
2024. In the petition filed by Gerald W. Taylor as manager, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
The Debtor is represented by Brian G. Rich, Esq., at BERGER
SINGERMAN LLP, in Tallahassee, Florida.
HAWAIIAN HOLDINGS: Egan-Jones Retains CCC- Sr. Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on November 6, 2024, maintained its
'CCC-' foreign currency and local currency senior unsecured ratings
on debt issued by Hawaiian Holdings, Inc. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Honolulu, Hawaii, Hawaiian Holdings, Inc. provides
transportation services.
HERBALIFE LTD: Egan-Jones Retains BB- Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on November 15, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Herbalife Ltd. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Los Angeles, California, Herbalife Ltd operates as
a nutrition company.
HILLCREST CENTER: Case Summary & 10 Unsecured Creditors
-------------------------------------------------------
Debtor: Hillcrest Center LLC
375 Jackson Street
Suite 700 West
Saint Paul MN 55101
Business Description: Hillcrest Center LLC is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: December 12, 2024
Court: United States Bankruptcy Court
District of Minnesota
Case No.: 24-33279
Judge: Hon. William J Fisher
Debtor's Counsel: Kenneth Edstrom, Esq.
SAPIENTIA LAW GROUP
120 S 6th St Ste 100
Minneapolis MN 55402
Tel: 612-756-7100
E-mail: kene@sapientialaw.com
Total Assets: $8,181,056
Total Liabilities: $6,256,577
The petition was signed by Rosemary Kortgard as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 10 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/W3SN6AQ/Hillcrest_Center_LLC__mnbke-24-33279__0001.0.pdf?mcid=tGE4TAMA
HOUSTON TRUCK: Gets Interim OK to Use Lenders' Cash Collateral
--------------------------------------------------------------
Houston Truck Wash, Inc. received interim approval from the U.S.
Bankruptcy Court for the Southern District of Texas, Houston
Division, to use the cash collateral of its lenders.
The interim order signed by Judge Jeffrey Norman on Dec. 13
approved the use of cash collateral to pay the company's operating
expenses from Oct. 6 until the final hearing in accordance with the
company's budget.
Lenders JPMorgan Chase and OnDeck Capital retain their
pre-bankruptcy liens and security interests on the cash collateral
and its proceeds. These liens are subject and subordinate to a
carve-out of funds for all fees required to be paid.
In addition, JPMorgan will receive a monthly payment of $2,000 as
additional protection.
About Houston Truck Wash & Lube
Houston Truck Wash & Lube, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas
Case No. 24-34706) on October 6, 2024, listing $500,001 to $1
million in both assets and liabilities.
Judge Jeffrey P Norman presides over the case.
Reese W Baker, Esq., at Baker & Associates represents the Debtor as
legal counsel.
HUMPER EQUIPMENT: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Humper Equipment LLC
3351 N. Farm Road 209
Strafford, MO 65757
Chapter 11 Petition Date: December 12, 2024
Court: United States Bankruptcy Court
Western District of Missouri
Case No.: 24-60818
Judge: Hon. Brian T Fenimore
Debtor's Counsel: Sharon L. Stolte, Esq.
SANDBERG PHOENIX & VON GONTARD PC
4600 Madison Ave., Suite 1000
Kansas City, MO 64112
Tel: 816-627-5332
E-mail: sstolte@sandbergphoenix.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $10 million to $50 million
The petition was signed by James A. Keltner as sole member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/ZNJD7XQ/Humper_Equipment_LLC__mowbke-24-60818__0001.0.pdf?mcid=tGE4TAMA
HYPERION UTS: Wins Final OK to Use Cash Collateral
--------------------------------------------------
Hyperion UTS, Inc. received final approval from the U.S. Bankruptcy
Court for the Western District of North Carolina to use cash
collateral to fund its operating expenses.
The final order penned by Judge Laura Beyer authorized the company
to use the cash collateral of its creditors according to its
budget. However, the company must not exceed the budget by more
than 10% per line item on a cumulative basis.
The budget show total operational expenses, on a weekly basis, as
follows: $35,751 for Nov. 25; $56,484 for Dec. 2; $50,451 for Dec.
9; $52,984 for Dec. 16; and $42,150 for Dec. 23.
Hyperion UTS was authorized to continue factoring invoices with
Phoenix on a post-petition basis, and Phoenix was granted a senior
security interest in the collateral.
The order also granted a replacement lien to creditors and requires
the company to make payments to Phoenix.
About Hyperion UTS Inc.
Hyperion UTS Inc., doing business as United Trucking Solutions, is
an active interstate freight carrier based out of Huntersville,
North Carolina.
Hyperion UTS sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D.N.C. Case No. 24-30777) on Sept.
10, 2024, with $500,000 to $1 million in assets and $1 million to
$10 million in liabilities.
Yurii Stiahlii signed the petition as officer of the company.
Hyperion UTS is represented by John C. Woodman, Esq., at Essex
Richards, PA.
IGLESIA DE DIOS: Updates College Park Lodge Secured Claim Pay
-------------------------------------------------------------
Iglesia de Dios Pentecostes, Mision el Buen Samaritano, submitted a
First Amended Chapter 11 Plan.
The Plan provides for payment of administrative expenses, priority
claims, and secured creditors in full or in part, either in cash or
in deferred cash payments, and provides for payments to unsecured
creditors in an amount equal to or greater than they would receive
in the event of a Chapter 7 liquidation.
Funds for implementation of the Plan will be derived from the
Debtor's income from the operations of its business.
Were the Debtor's estate to be liquidated in a hypothetical Chapter
7 case, it is estimated that all creditors would be paid in full
from the proceeds of sale of the Property. The Plan provides for
the sale of the Property, upon which all allowed claims will be
paid in full. There are no avoidable prepetition transfers.
Class B-1 consists of the secured prepetition claim of the College
Park Lodge No, 453 Loyal Order of Moose, Inc. (the "Lodge") in the
approximate amount of $3,558,344.17 as of the Petition Date
pursuant to Proof of Claim No. 2, which is secured by a lien on the
Property. The Lodge shall retain its lien and shall be paid in full
upon the sale of the Property. Any payments made between the
Petition Date and the Effective Date, whether or not treated as
adequate protection payments, shall be applied as a credit against
the secured portion of this claim. Upon completion of the payment
of this claim, any liens on the collateral shall be deemed
satisfied and shall be released within 30 days. This class is not
impaired.
Class C-1 consists of all allowed general unsecured claims against
the Debtor. There is currently one allowed Class C-1 claim, that of
Mt. Aetna Camp & Retreat Center (no Proof of Claim filed), in the
amount of $4,612.00. This claim shall be paid in full, with
interest at the federal judgment rate in effect on the Confirmation
Date, within 30 days following the sale of the Property as provided
for in Article VI or the Effective Date, whichever is later. This
class is not impaired.
As the circumstances that led to the bankruptcy filing were largely
caused by the Covid-19 pandemic, as the pandemic has lessened, the
Church's financial circumstances have improved. Membership
continues to grow, and members are continuously tithing and
supporting Church projects. The Church believes that its current
and ongoing financial circumstances, when coupled with the sale of
the Property, will allow for the payment in full of all creditors.
Funds for implementation of the Plan will be derived from the sale
of the Property. The Court has approved a ratified contract for the
sale of the Property to Mekane Hiwet Medhane Alem Tigray Orthodox
Tewahdo Church (the "Buyer"). Should such sale not occur to the
Buyer, the Property shall be sold, with such sale to be completed
and such payments made on or before the one-year anniversary of the
Effective Date.
A full-text copy of the First Amended Plan dated November 13, 2024
is available at https://urlcurt.com/u?l=4iIxwm from
PacerMonitor.com at no charge.
Co-Counsel to the Debtor:
Brett Weiss, Esq.
Weiss Law Group, LLC
8843 Greenbelt Road, Suite 299,
Greenbelt, Maryland 20770
Tel: (301) 924-4400
Fax: (240) 627-4186
Email: brett@BankruptcyLawMaryland.com
Michael A. Ostroff, Esq.
Montero Law Group, LLC
1738 Elton Road, Suite 105
Silver Spring, MD 20903
Telephone: (301) 588-8100
Facsimile: (301) 588-8101
Email: mostroff@monterolawgroup.com
About Iglesia De Dios Pentecostes
Mision El Buen Samaritano
Iglesia de Dios Pentecostes is a pentecostal church in College
Park, Maryland.
Iglesia de Dios Pentecostes, Mision el Buen Samaritano filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Md. Case No. 24-14088) on May 13, 2024. The
petition was signed by Juan M. Flores as pastor/president. At the
time of filing, the Debtor estimated $5,829,100 in assets and
$3,569,268 in liabilities.
Michael A. Ostroff, Esq., at Montero Law Group, LLC, is the
Debtor's counsel.
IMAX CORP: Egan-Jones Retains BB- Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on November 14, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by IMAX Corporation. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Mississauga, Canada, IMAX Corporation offers
end-to-end cinematic solution combining proprietary software,
theater architecture, and equipment.
INCORA: U.S. Trustee Objects to 3rd-Party Releases in Plan
----------------------------------------------------------
Ben Zigterman of Law360 reports that the U.S. Trustee's Office
filed an objection to the third-party releases included in Incora's
Chapter 11 plan. In a Texas bankruptcy court, the office argued
that the plan's opt-out mechanism for the releases is not
equivalent to procedures used in class actions, the report
related.
About Incora
Incora -- http://www.incora.com/-- is the trade name for the group
of companies formed by Wesco Aircraft and Pattonair, a provider of
comprehensive supply chain management services to the global
aerospace and other industries. Beginning with a strong foundation
in aerospace and defense, Incora also utilizes its supply chain
expertise to serve industrial manufacturing, marine, pharmaceutical
and beyond. Incora incorporates itself into customers' businesses,
managing all aspects of supply chain from procurement and inventory
management to logistics and on-site customer services. The company
is headquartered in Fort Worth, Texas, with a global footprint that
includes 68 locations in 17 countries and more than 3,800
employees.
Wesco Aircraft Holdings, Inc., doing business as Incora, and 43
affiliates sought Chapter 11 protection (Bankr. S.D. Texas Lead
Case No. 23-90611) on June 1, 2023.
Wesco Aircraft estimated assets and debt of $1 billion to $10
billion as of the bankruptcy filing.
The Debtors tapped Milbank, LLP and Haynes and Boone, LLP as
bankruptcy counsels; PJT Partners, Inc. as investment banker;
Alvarez & Marsal North America, LLC as restructuring advisor; and
Quinn Emanuel Urquhart & Sullivan, LLP as special litigation and
conflicts counsel. Kurtzman Carson Consultants, LLC is the claims
agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped McDermott Will & Emery, LLP and Morrison Foerster,
LLP as its counsel; Piper Sandler & Co. as investment banker; and
Province, LLC as financial advisor.
\
INNOVERE MEDICAL: Gets CCAA Initial Stay Order; E&Y as Monitor
--------------------------------------------------------------
Innovere Medical Inc. commenced a court-supervised restructuring
proceeding under the CCAA. Ernst & Young Inc. was appointed as
monitor of Innovere ("Monitor") pursuant to the Order of the
Ontario Superior Court of Justice (Commercial List)
("Court")("Initial Order").
Copies of the Initial Order and other related documents in
connection with this CCAA proceeding have been posted on the
Monitor's website at https://www.ey.com/ca/innovere.
The Initial Order granted, among other things, a stay of
proceedings up to and including Nov.15, 2024 ("Stay Period"), which
may be extended by further order of the Court from time-to-time.
During the Stay Period, all parties are prohibited from commencing
or continuing any legal proceedings against or in respect of
Innovere, and all rights and remedies of all persons against or in
respect of Innovere, its assets, business or current officers and
directors are stayed and suspended, except with the written consent
of Innovere and the Monitor or with leave of the Court.
No claims procedure has yet been submitted to, or approved by, the
Court and creditors are therefore not required to file proofs of
claim at this time.
The Monitor's contact details for additional information relating
to this CCAA proceeding are:
Ernst & Young Inc.
in its capacity as the Court-Appointed
Monitor of Innovere Medical Inc.
and not in its personal capacity
100 Adelaide Street West, P.O. Box 1
Toronto, ON, M5H 0B3
Tel: 416-943-2329
416-943-3470
Email: Donna.M.Hatfull@parthenon.ey.com
Allen.Yao@parthenon.ey.com
Counsel to the Monitor:
Thornton Grout Finnigan LLP
TD West Tower, Toronto-Dominion Centre
100 Wellington Street West, Suite 3200
Toronto, ON M5K 1K7
Mitchell Grossell
Tel: 416-304-7978
Email: mgrossell@tgf.ca
Shurabi Srikaruna
Tel: 416-304-0562
Email: ssrikaruna@tgf.ca
Counsel to the Company:
Torys LLP
79 Wellington St. W., 30th Floor
Box 270, TD South Tower
Toronto, ON M5K 1N2
Adam M. Slavens
Tel: 416-865-7333
Email: aslavens@torys.com
Mike Noel
Tel: 416-865-7378
Email: mnoel@torys.com
Innovere Medical Inc. is a Canadian start-up company that has
developed the world's first wireless TV that operates inside an MRI
scanner.
INOTIV INC: Silver Point Marks $16.03MM Loan at 15% Off
-------------------------------------------------------
Silver Point Specialty Lending Fund has marked its $16,037, 972
loan extended to Inotiv, Inc to market at $13,672,612 or 85% of the
outstanding amount, according to a disclosure contained in Silver
Point's Amended Form 10-Q for the quarterly period ended September
30, 2024 filed with the Securities and Exchange Commission.
Silver Point is a participant in a First Lien Term Loan to Inotiv,
Inc. The loan accrues interest at a rate of 11.3% (S+7.01%, 1.00%
Floor) per annum. The loan is scheduled to mature on November 5,
2026.
Silver Point Specialty Lending Fund is an externally managed
closed-end management investment company that has elected to be
regulated as a business development company under the Investment
Company Act of 1940, as amended and was originally formed on July
31, 2014. Effective November 15, 2021, Silver Point changed its
name to Silver Point Specialty Lending Fund and converted to a
statutory trust organized under the laws of the State of Maryland.
Silver Point is an emerging growth company under the Jumpstart Our
Business Startups Act of 2012. For so long as Silver Point remains
an emerging growth company under the JOBS Act, it will be subject
to reduced public company reporting requirements.
Silver Point is led by Edward Mulé, Chief Executive Officer; and
Jesse Dorigo, Chief Financial Officer. The Fund can be reached
through:
Edward Mule
Silver Point Specialty Lending Fund
Maryland, Two Greenwich Plaza, Suite 1
Greenwich, CT, 06830
Tel.: (203) 542-4200
West Lafayette, Ind.-based Inotiv, Inc. and its subsidiaries
comprise a leading contract research organization dedicated to
providing nonclinical and analytical drug discovery and
development
services to the pharmaceutical and medical device industries and
selling a range of research-quality animals and diets to the same
industries as well as academia and government clients.
IONIS PHARMACEUTICALS: Egan-Jones Retains B Sr. Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on November 21, 2024, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Ionis Pharmaceuticals, Inc. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Carlsbad, California, Ionis Pharmaceuticals, Inc.
operates as a biotechnology company.
IYS VENTURE: Amends Itria Ventures & Huntington Secured Claims Pay
------------------------------------------------------------------
CrossAmerica Partners LP ("CAP"), a creditor and contract
counterparty, and certain parties submitted a Disclosure Statement
describing Amended Chapter 11 Plan of Liquidation dated November
14, 2024.
The Plan is proposed in parallel with the Debtor’s Amended
Disclosure Statement to Second Amended Plan of Reorganization Filed
by IYS Ventures LLC filed November 14, 2024.
The Proponents believe that the Debtor's creditors are best served
by a plan of liquidation instead of a plan of reorganization and
that an orderly plan of liquidation better serves stakeholders than
a liquidation under chapter 7 of the Bankruptcy Code. The
Proponents believe that the Debtor's Plan is not feasible,
primarily because the Debtor does not currently generate enough
income to meet its current monthly Lease Obligations on time and
because the Debtor's Plan requires a recovery from the CAP
Adversary Proceedings, which involve meritless claims that will
only cost the Estate further resources. Therefore, the Proponents
propose the Plan, which is a plan of liquidation, in competition
with the Debtor's Plan.
The Debtor's Plan proposes to pay Holders of General Non-Priority
Unsecured Claims over a one-year period an aggregate sum of
$800,000 in full and final satisfaction of their Claims, which are
estimated to be allowed in the amount of $25,632,517.85. According
to Section 4.4 of the Debtor's Plan, the Debtor proposes to fund
the Debtor's Plan with its available cash (only $77,918.00 as of
September 30, 2024 according to the Debtor's liquidation analysis),
a new $800,000.00 loan, continued operation of the Leased Stations
and the Net Proceeds of Litigation Claims including the PMPA
Adversary and CAP Adversary.
As an alternative to the Debtor's Plan, the Proponents are
proposing the Plan, which liquidates the Debtor's assets as soon as
practicable and provides a more certain recovery to creditors. A
central piece of the Plan is the CAP Settlement. As part of the CAP
Settlement, CAP will (1) purchase the fuel and inventory at the
Leased Stations and the Freedom Medical Stations for an estimated
amount of approximately $1.8 million, (2) pay $100,000 to the
Debtor's Estate solely for the benefit of Class 5 General Unsecured
Creditors, (3) pay $100,000 to the Debtor's Estate solely to fund
the Wind-Down Fund, (4) continue operations at all of the Leased
Stations by hiring the current employees who are employed at such
stations, and (5) fully satisfy the Class 1(b) Claims of Huntington
National Bank by purchasing the collateral securing such Claims
from the Holders of such Class 1(b) Claims.
The Proponents' Plan calls for the Debtor to return the remaining
18 Leased Stations to CAP, with CAP to purchase the fuel and
convenience store inventory from the Debtor's Estate as it did for
the 22 Stations that the Debtor previously "pushed back" to CAP and
to pay Huntington Bank to satisfy its security interest in certain
fuel dispensers purchased by the Debtor. Further, the Proponents'
Plan calls for the Liquidating Trustee to liquidate the Debtor's
interest in the fuel and convenience store inventory and leases at
the Freedom Medical Stations, either by selling or abandoning those
assets. The Proponents estimate that simply surrendering the Leased
Stations to CAP and liquidating the fuel and convenience store
inventory at the Freedom Medical Stations could result in a payment
of nearly $1.8 million to the Estate for the benefit of creditors
without the significant uncertainty and payout over time.
In addition, although a significant portion of the Debtor's
$995,000 Security Deposit held by CAP is already due to satisfy the
Debtor's obligations under the CAP Agreements and the remainder of
the Security Deposit will be required in connection with the return
of the remaining Leased Stations, the Proponents' Plan includes
CAP's proposal to release its Claims against the Debtor for any
deficiency in the Security Deposit, and pay $200,000 to the Estate,
half of which would be earmarked for Distribution to Class 5
General Unsecured Creditors. The Debtor's liquidation could also
result in the sale of the Debtor's leasehold interest in the
Freedom Medical Stations, possibly generating additional Cash for
the benefit of the Debtor's creditors. In sum, a plan of
liquidation, rather than reorganization, will maximize the
remaining value of the Debtor's Estate, provide an immediate
recovery for creditors, and avoid the substantial risk of relying
on the future performance of a struggling business.
Class 1(a) shall consist of the Itria Ventures, LLC Secured Claims.
Except to the extent that the Holder of an Itria Ventures, LLC
Secured Claim agrees to a less favorable or different treatment,
on, or as soon as reasonably practicable after, the Effective Date
or the date such Itria Ventures, LLC Secured Claim becomes an
Allowed Secured Claim, the Holder of the Itria Ventures, LLC
Secured Claim shall receive, in full and final satisfaction,
settlement, compromise, and release of the Itria Ventures, LLC
Secured Claim, Cash sufficient to pay the Allowed Itria Ventures,
LLC Secured Claim in full from CAP's purchase of the Debtor's fuel
and convenience store inventory pursuant to Mutual Termination
Agreements contemplated by the CAP Settlement Agreement. The amount
of claim in this Class total $837,000.00, not including allowed
attorney fees. This Class will receive a distribution of 100% of
their allowed claims.
Class 1(b) shall consist of the Huntington National Bank Secured
Claim. Except to the extent that a Holder of a Huntington National
Bank Secured Claim agrees to a less favorable or different
treatment, on, or as soon as reasonably practicable after, the
Effective Date or the date such Huntington National Bank Secured
Claim becomes an Allowed Secured Claim, each Holder of a Huntington
National Bank Secured Claim shall receive, in full and final
satisfaction, settlement, compromise, and release of each such
Allowed Secured Claim: (i) Cash, from CAP, in the amount of
$100,000 in accordance with the terms of the CAP Settlement. The
amount of claim in this Class total $100,000. This Class will
receive a distribution of 100% of their allowed claims.
Like in the prior iteration of the Plan, each Holder of an Allowed
General Unsecured Claim in Class 5 shall receive, in full and final
satisfaction, settlement, and release of such General Unsecured
Claim, Cash in an amount equal to its Pro Rata share among all
Holders of General Unsecured Claims of the Distribution Fund, not
to exceed the amount of such Allowed General Unsecured Claim.
The allowed unsecured claims total $25,732,014.04. This Class will
receive a distribution of 0.4% to 1% of their allowed claims. Class
5 Claims are Impaired by the Plan and entitled to vote to accept or
reject the Plan.
On or prior to the Effective Date, the Liquidation Trustee and the
Debtor shall execute the Liquidation Trust Agreement. The
Liquidation Trust shall become effective on the Effective Date. On
the Effective Date, the Liquidation Trust shall be deemed to be
valid, binding and enforceable in accordance with the terms and
provisions of the Plan and the Liquidation Trust Agreement. After
the Effective Date, the Liquidation Trust Agreement may be amended
in accordance with its terms without further order of the
Bankruptcy Court. The Liquidation Trust Agreement shall be
satisfactory in form and substance to the Debtor and the
Proponents.
A full-text copy of the Disclosure Statement dated November 14,
2024 is available at https://urlcurt.com/u?l=qB6VJv from
PacerMonitor.com at no charge.
Counsel to CrossAmerica Partners LP:
FOX ROTHSCHILD LLP
Gordon E. Gouveia, Esq.
Peter C. Buckley, Esq.
Matthew R. Higgins, Esq.
321 North Clark Street, Suite 1600
Chicago, IL 60654
Telephone: (312) 980-3816
Facsimile: (312) 517-9201
E-mail: ggouveia@foxrothschild.com
About IYS Ventures
IYS Ventures LLC leases, owns and operates gas stations located in
Illinois, Minnesota, Michigan, Indiana, Ohio, South Dakota,
Virginia, Wisconsin, and Louisiana.
The Debtor filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-06782) on May 23,
2023. In the petition filed by Muwafak Rizek, as manager and
member, the Debtor reported assets between $1 million and $10
million and liabilities between $10 million and $50 million.
The Honorable Bankruptcy Judge David D. Cleary oversees the case.
Gregory K. Stern, P.C., is the Debtor's legal counsel.
J&K SAI HOSPITALITY: Files Chapter 11 Bankruptcy in Florida
-----------------------------------------------------------
On December 5, 2024, J&K SAI Hospitality LLC filed Chapter 11
protection in the Northern District of Florida. According to court
filing, the Debtor reports between $10 million and $50 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 January 21,
2025 at 10:00 AM at/via with the U.S. Trustee by telephone at (877)
835-0364, Access Code 4662459.
About J&K SAI Hospitality LLC
J&K SAI Hospitality LLC is a limited liability company.
J&K SAI Hospitality LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Fla. Case No. 24-31020) on December 5,
2024. In the petition filed by Ramesh Patel, as registered agent
and MGRM, the Debtor reports estimated assets and liabilities
between $10 million and $50 million each.
Honorable Bankruptcy Judge Karen K. Specie oversees the case.
The Debtor is represented by:
Michael A. Wynn, Esq.
WYNN & ASSOCIATES PLLC
430 W. 5th Street
Suite 400
Panama City, FL 32401
Tel: (850) 303-7800
Fax: (850) 526-5210
Email: michael@wynnpllc.com
JEFFERSON CAPITAL: Moody's Affirms 'Ba2' CFR, Outlook Stable
------------------------------------------------------------
Moody's Ratings has affirmed the Ba2 corporate family rating and
Ba3 senior unsecured rating of Jefferson Capital Holdings LLC
(Jefferson). The company's outlook is stable.
RATINGS RATIONALE
The affirmation of the Ba2 CFR is due to a re-assessment of
Jefferson's operating environment as a debt purchaser and
collector, and the company's strong performance despite a highly
cyclical and challenging environment.
Similar to other debt purchasing and debt collection companies,
Jefferson's CFR is constrained by the operating environment score,
which Moody's have lowered for all rated debt purchasing companies
to B1. Previously, Jefferson's operating environment score was Ba2.
This reflects Moody's view that the sector is highly cyclical,
sensitive to the availability of nonperforming loans, and affected
by changes in collection patterns through economic cycles. During
periods of the credit cycle with high interest rates, access to
capital and cost of capital can represent material challenges as
the debt purchasing business is capital and technology intensive,
while low availability of nonperforming loan supply results in
highly competitive pricing, thus significantly affecting the
profitability of debt purchasers.
At the same time, the affirmation of Jefferson's Ba2 CFR and Ba3
senior unsecured rating reflect the company's strong profitability,
solid interest coverage, stable capitalization and modest
debt/EBITDA leverage. The ratings also reflect risks from the
company's reliance on internal modeling for valuing portfolio
purchases and associated future collections, the estimates of which
could deteriorate significantly amid unexpected economic,
regulatory, or consumer behavior changes. The ratings also reflect
regulatory risk associated with operating in the debt collection
business, particularly in the US.
Jefferson's Ba3 senior unsecured rating reflects the debts' ranking
and size in the company's capital structure.
The stable outlook reflects Moody's expectation that Jefferson's
strong competitive position will support its revenue, profitability
and cash flow, offset by Moody's expectation that debt leverage
will remain at the top end of the company's target range and
interest coverage will be weaker than in prior years.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Jefferson's ratings could be upgraded if the company 1) continues
to demonstrate strong financial performance as it increases its
scale, with consistently solid profitability and cash flows; 2)
maintains its our-adjusted debt/EBITDA at less than 2.0x; and 3)
continues to improve its liquidity and funding profile as evidenced
by reduced reliance on secured credit facilities.
The ratings could be downgraded if the company's financial
performance materially deteriorates; for example, if our-adjusted
debt/EBITDA leverage increases to above 3.5x or if the company's
profitability and liquidity meaningful deteriorate on a sustained
basis. Adverse regulatory developments or a significant operational
or compliance failure that weakens the company's franchise could
also result in a downgrade. A weakness in collections or higher
costs associated with the Conn's transaction that lead to lower
EBITDA than originally expected could lead to a downgrade.
The principal methodology used in these ratings was Finance
Companies published in July 2024.
KIRBY CORP: Egan-Jones Hikes Senior Unsecured Ratings to BB+
------------------------------------------------------------
Egan-Jones Ratings Company on November 26, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Kirby Corporation to BB+ from BB.
Headquartered in Houston, Texas, Kirby Corporation operates a fleet
of inland tank barges.
KRAIG BOCRAFT: Founder & CEO Owns 12.30% Equity Stake
-----------------------------------------------------
Kraig Biocraft Laboratories, Inc., filed a Form S-1/A with the U.S.
Securities and Exchange Commission to disclose Amendment No. 16 to
the Company's registration statement on Form S-1, initially filed
on June 2, 2020, as amended on August 24, 2020, February 8, 2021,
February 18, 2021, May 26, 2021, August 25, 2021, December 3, 2021,
April 14, 2022, May 25, 2022, December 1, 2022, April 14, 2023,
April 27, 2023, May 9, 2023, June 6, 2023, September 1, 2023,
November 22, 2023, to include information contained in the
registrant’s Annual Report on Form 10-K for the year ended
December 31, 2023 which was filed with the SEC on April 1, 2024 and
Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2024, which was filed with the SEC on November 13,
2024.
As of December 9, 2024, there are 1,038,374,219 shares of Common
Stock issued and outstanding. Kim Thompson, the Company's founder
and Chief Executive Officer, owns approximately 12.30% of the
Company's issued and outstanding Common Stock. As of December 9,
2024, there are 3 shares of super voting Series A Preferred Stock
issued and outstanding, all of which are owned by Kim Thompson,
which represent approximately 36.62% of all voting rights of the
capital stock.
A full-text copy of the Form S-1/A is available at
https://urlcurt.com/u?l=S779Uj
About Kraig Biocraft
Ann Arbor, Mich.-based Kraig Biocraft Laboratories, Inc., a Wyoming
corporation, is organized to develop high-strength fibers using
recombinant DNA technology for commercial applications in technical
textiles.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's auditor
since 2013, issued a "going concern" qualification in its report
dated April 1, 2024, citing that the Company has suffered net
losses from operations and has a net capital deficiency, which
raise substantial doubt about its ability to continue as a going
concern.
Kraig Biocraft Laboratories incurred a net loss of $3,029,780
during the year ended December 31, 2023.
LASERSHIP INC: Moody's Ups CFR to 'Caa2' & Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Ratings upgraded LaserShip, Inc.'s (dba OnTrac) corporate
family rating to Caa2 from Caa3 and probability of default rating
to Caa2-PD from Caa3-PD. Concurrently, Moody's assigned ratings to
the company's new senior secured bank credit facilities, including
a B2 rating to the super priority first out revolving credit
facility and super priority first out tranche A term loan, a Caa2
rating to the super priority second out tranche B and C term loans
and a Caa3 rating to the super priority third out tranche D and E
term loans. Moody's downgraded the rating on the company's existing
senior secured first lien term loan due 2028 to Ca from Caa2 and
affirmed the Ca rating on its existing senior secured second lien
term loan due 2029. The outlook was changed to stable from
negative.
The rating actions follow OnTrac's completion of a debt
restructuring transaction in November 2024.
The upgrade of the CFR to Caa2 reflects the improvement in OnTrac's
liquidity following the transaction with restored revolver
availability, reduced cash interest expense and no significant debt
maturities over the near-term. However, the transaction did not
materially reduce the company's total debt load, which is expected
to increase over the next 18 months from the payment-in-kind (PIK)
component of interest expense. As a result, Moody's expect leverage
will remain in excess of 8.0x debt/EBITDA over that timeframe.
Although Moody's expect OnTrac to increase package volumes and
profitability in 2025, the company's credit metrics will remain
very weak. Further, Moody's expect pricing in the parcel delivery
market will remain highly competitive and overall volumes are
susceptible to pull backs in consumer demand. These risks will
weigh heavily on OnTrac's ability to improve its operating
results.
RATINGS RATIONALE
OnTrac's Caa2 CFR reflects the company's very high financial
leverage, negative free cash flow, weak interest coverage and
moderate scale in the highly competitive e-commerce residential
delivery space. The company's significant debt load and high
interest burden limits financial flexibility such that any delay in
the necessary improvement in operating performance may result in
the need for additional debt restructuring.
However, Moody's expect OnTrac's operating performance will likely
improve in 2025 following a difficult 2024 that saw lower package
volumes and competitive pricing. Moody's expect at least 7% revenue
growth from increased package volumes tied to new customers and
added delivery options with existing customers. OnTrac's network
expansion into Texas and the Midwest as well as 7-day shipping
capabilities provide customers with more service options.
OnTrac will benefit from these higher volumes through better
operating leverage throughout its network. Significant capital
investment in prior years has created excess capacity in OnTrac's
network, which was underutilized in 2024. Further, the company has
enacted various productivity and cost saving initiatives in the
back half of 2024, which should yield improved profitability over
the next few quarters.
The stable outlook reflects Moody's expectation that OnTrac's
operating performance will gradually improve over the next 12
months, yet financial leverage will remain very high and free cash
flow will remain negative.
Moody's expect OnTrac to maintain adequate liquidity. Following the
debt restructuring, OnTrac has access to a $125 million first out
revolving credit facility expiring 2029, which is expected to
remain undrawn. Liquidity is further supplemented by a $150 million
accounts receivable securitization facility expiring 2027 (with
available borrowings of up to $250 million from November through
February). Moody's expect OnTrac's free cash flow to remain
negative in 2025 and 2026. Lower cash interest expense and
disciplined capital expenditure spending at about 1% of revenue
will help reduce cash burn compared to prior years. Moody's expect
OnTrac to hold a nominal amount of cash.
The B2 rating on the company's new revolving credit facility and
tranche A term loan reflect their first priority position in
OnTrac's capital structure and prospects for high recovery given
their modest size compared to junior debt obligations. The tranche
B and C term loans, which represent the majority of debt, are rated
in line with the CFR at Caa2, reflecting their second priority
payout position in the event of a default. The tranche D and E term
loans are rated Caa3, reflecting their third-out position.
Remaining debt that was not exchanged in the transaction, which
include stub portions of OnTrac's first lien term loan due 2028 and
second lien term loan due 2029, are rated Ca, which reflects their
effective subordination to all other debt obligations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if OnTrac's package volume growth and
improved operating leverage is sustained. Credit metrics that could
support an upgrade include debt/EBITDA approaching 7.5x and EBITDA
less capex to interest expense near 1.0x. Maintaining adequate
liquidity and demonstrating a trajectory towards positive free cash
flow would also be required for an upgrade.
The ratings could be downgraded if OnTrac is unable to improve
earnings or reduce leverage from current levels. The ratings could
also be downgraded if liquidity deteriorates, including persistent
negative free cash flow or increased reliance on available credit
facilities. Finally, the ratings could be downgraded if Moody's
believe the probability of additional debt restructuring has
increased.
LaserShip, Inc. (dba OnTrac) is a last mile parcel delivery
provider with a focus on business to consumer deliveries for
leading e-commerce retailers across apparel, health and beauty,
food, and mass merchandise markets. The company is majority owned
by private equity firm American Securities. Revenue for the twelve
months ended September 30, 2024 was approximately $2.1 billion.
The principal methodology used in these ratings was Surface
Transportation and Logistics published in December 2021.
LAVIE CARE: NO Decline in Resident Care, 2nd PCO Report Says
------------------------------------------------------------
Joani Latimer, the patient care ombudsman, filed her second report
regarding the quality of patient care provided by LaVie Care
Centers, LLC. The report covers the period September 8 to November
7.
The ombudsman representative (OR) visited the Ashland and
Rehabilitation facility on November 4. Residents stated that the
food is okay but not great. Dead bug seen on Hall 200. Resident
stated they are seeing spiders, and the rooms need to be sprayed.
The OR did receive complaints and general concerns during the
visit.
On November 18, the OR made a follow-up visit to the facility and
met with the Social Worker serving as the administrator of record
for the day. The OR and social worker discussed actions taken to
date by the facility to discuss the problems identified. These
included arrangements made for an exterminator to spray for buds
and spiders reported in the facility; hiring of a new director for
the Memory Care Unit and increase in staffing levels for the unity;
and arrangements for supplemental staff training.
On September 24, the OR visited the Augusta Nursing and
Rehabilitation Center facility. The OR spoke to 3 residents. One
reported that the food was good, one reported that the eggs were
being served cold, and one other resident reported that the nurses
were distributing the food trays in the morning and that nurse
shouldn't be responsible for that. There was no indication of a
decline in resident care during the visit and no new complaints
were received.
Consulate Health Care of Norfolk facility was visited on September
13 and November 1. During the September 13th visit, the OR met with
the administrator and some other staff members as a follow-up on
how the facility is doing while in bankruptcy. Housekeeping,
maintenance and dietary had no new concerns. No new complaints were
received during this visit. There was no indication of decline in
resident care.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=GslHUU from Kurtzman Carson Consultants,
LLC, claims agent.
The ombudsman may be reached at:
Joani Latimer
State Long-Term Care Ombudsman
8004 Franklin Farms Drive
Richmond, Virginia 23229
Phone: (804) 565-1600
Email: Joani.Latimer@dars.virginia.gov
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.
Troutman Pepper Hamilton Sanders, LLP and FTI Consulting, Inc.
serve as the committee's legal counsel and financial advisor,
respectively.
Joani Latimer is the patient care ombudsman appointed in the cases.
LAW OFFICE OF JESSICA: Norman Rouse Named Subchapter V Trustee
--------------------------------------------------------------
The Acting U.S. Trustee for Region 13 appointed Norman Rouse as
Subchapter V trustee for The Law Office of Jessica Piedra, LLC.
Ms. Rouse will be paid an hourly fee of $275 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Rouse declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Norman E. Rouse
5957 Easte 20th Street
Jopli, MO 64801
Phone: 417.782.2222
Email: nrouse@cwrcave.com
About The Law Office of Jessica Piedra
The Law Office of Jessica Piedra, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Mo. Case No.
24-41664) on November 19, 2024, with $1 million to $10 million in
assets and $100,001 to $500,000 in liabilities.
Judge Brian T. Fenimore presides over the case.
Erlene W. Krigel, Esq. at Krigel Nugent Moore, P.C. represents the
Debtor as legal counsel.
LCS UNLIMITED: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------
LCS Unlimited, LLC asked the U.S. Bankruptcy Court for the Middle
District of Alabama for authority to use cash collateral and
provide adequate protection.
The Debtor requires the use of cash collateral for administrative,
general and necessary costs and expenses.
Throughout approximately the last two years, the Debtor has
suffered financial problems believed to be related, at least in
part, to the lack of capital improvements by existing business and
the decline in the construction and development of new businesses,
which results in a decrease in the sales of construction related
products such as aggregate rock and/or stone.
Based upon information available through the records of the Alabama
Secretary of State, the following entities have UCC Financing
Statements of Record and may have interest in the cash collateral:
a. Arvest Bank
b. Commercial Credit Group, Inc.
c. Internal Revenue Service
The Debtor proposes that adequate protection to the aforesaid
entities who hold valid security interests in the cash collateral
includes a replacement lien on the Debtor's post-petition
receivables and projected positive cash flow.
About L.C.S. Unlimited
L.C.S. Unlimited, LLC filed Chapter 11 petition (Bankr. M.D. Ala.
Case No. 24-32330) on Oct. 15, 2024, with $1 million to $10 million
in both assets and liabilities. The petition was signed by Lisa C.
Sweeney as member.
Judge Christopher L. Hawkins oversees the case.
Anthony B. Bush, Esq., at The Bush Law Firm, LLC is the Debtor's
bankruptcy counsel.
LERETA LLC: DoubleLine ISF Marks $1.1MM Loan at 18% Off
-------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $1,101,584 loan
extended to Lereta LLC to market at $897,791 or 82% of the
outstanding amount, according to a disclosure contained in
DoubleLine ISF's Amended Form N-CSR for the six-month period ended
September 30, 2024, filed with the U.S. Securities and Exchange
Commission.
DoubleLine ISF is a participant in a Senior Secured First Lien Term
Loan to Lereta LLC. The loan accrues interest at a rate of 10.61%
(3 Month term SOFR+ 5.25%) per annum. The loan matures on August 7,
2028.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
Headquartered in Pomona, California, Lereta LLC is a
technology-enabled property tax and flood determination service
provider to the financial services industry. The company provides
services in the areas of tax certification management and flood
determination to mortgage originators and servicers. Lereta is
owned by Flexpoint Ford and Vestar Capital Partners.
LEWISBERRY PARTNERS: Gets OK to Use Cash Collateral Until Jan. 3
----------------------------------------------------------------
Lewisberry Partners, LLC received fourth interim approval from the
U.S. Bankruptcy Court for the Eastern District of Pennsylvania to
use cash collateral until Jan. 3 next year.
The interim order, signed by Judge Patricia Mayer, approved the use
of cash collateral of HOF Grantor Trust 1, the secured lender, to
pay the company's expenses in accordance with its budget, with a
10% variance.
As adequate protection, the lender was granted replacement lien to
the same extent and with the same priority as its pre-bankruptcy
lien.
To the extent the replacement lien proves insufficient to protect
the lender's interests, the lender will have a super-priority
administrative expense claim that is senior to all claims against
Lewisberry.
About Lewisberry Partners
Lewisberry Partners, LLC is primarily engaged in leasing buildings,
dwellings, or other real estate property.
Lewisberry filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 24-11496) on May
2, 2024, listing $1 million to $10 million in both assets and
liabilities. The petition was signed by Richard J. Puleo as
managing member.
Judge Patricia M. Mayer presides over the case.
Albert A. Ciardi, III, Esq., at Ciardi Ciardi and Astin represents
the Debtor as legal counsel.
LI-CYCLE HOLDINGS: Glencore, Affiliates Hold 69% of Equity
----------------------------------------------------------
Glencore plc, Glencore International AG, and Glencore Canada
Corporation disclosed in a Scheduled 13D with the U.S. Securities
and Exchange Commission that as of December 9, 2024, they
beneficially own 61,856,623 shares, which represent 61,849,200
Common Shares of Li-Cycle Holdings Corp. that are issuable to
Glencore Canada upon conversion of all of the outstanding secured
and unsecured notes of Li-Cycle held by Glencore Canada, subject to
adjustment and including accrued but unpaid interest through
December 9, 2024, plus 7,423 Common Shares of the Li-Cycle awarded
to Mr. Kunal Sinha under the Company's 2021 Incentive Award Plan.
As a result of the occurrence of the First Modification Date, which
occurred on December 9, 2024, and ongoing sales of Common Shares by
the Company pursuant to the ATM Program, as applicable, the
conversion price for the $116,551,170.40 original principal amount
note of the A&R Glencore Convertible Notes was adjusted to $3.03,
the conversion price for the $114,615,632.00 original principal
amount note of the A&R Glencore Convertible Notes was adjusted to
$76.23, and the New Note Conversion Price for the Senior Secured
Convertible Note was adjusted to $4.14, each subject to future
adjustments in accordance with the terms of the applicable notes.
As of December 9, 2024, Glencore et al. may be deemed to have
shared power to vote, direct the vote, dispose of or direct the
disposition of (and therefore beneficially own), an aggregate of
61,849,200 Common Shares issuable upon the conversion of the Senior
Secured Convertible Note and A&R Glencore Convertible Notes
directly owned by Glencore Canada, including accrued but unpaid
interest through December 9, 2024, plus 7,423 Common Shares awarded
to Mr. Kunal Sinha under the Company's 2021 Incentive Award Plan.
This amount of Common Shares represents approximately 69.2% of the
outstanding Common Shares and is calculated based on 27,508,269
Common Shares of the Issuer outstanding as of as of December 6,
2024 -- outstanding shares based on information provided to
Glencore et al. by Li-Cycle -- plus the 61,849,200 Common Shares of
the Issuer issuable to Glencore Canada upon conversion of all of
the Senior Secured Convertible Note and A&R Glencore Convertible
Notes directly owned by Glencore Canada including accrued but
unpaid interest through December 9, 2024. Mr. Sinha is the Global
Head of Recycling at the Glencore group and holds the securities
reported herein for the benefit of Glencore et al., and will, after
vesting, if applicable, transfer the securities directly to
Glencore et al.
About Li-Cycle Holdings Corp.
Li-Cycle Holdings Corp. is a Canada-based global lithium-ion
battery resource recovery company and pure-play lithium-ion battery
recycler.
Vaughan, Canada-based KPMG LLP, the Company's former auditor,
issued a "going concern" qualification in its report dated March
15, 2024, citing that the Company has suffered recurring losses
from operations since inception, continued cash outflows from
operating activities and paused its construction of the Rochester
Hub project, that raise substantial doubt about its ability to
continue as a going concern.
Li-Cycle reported a net loss of $138 million for the year ended
December 31, 2023, compared to net loss of $70.8 million for the
year ended December 31, 2022.
LINX OF LAKE: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Linx of Lake Mary LLC
550 Lake Mary Blvd.
Lake Mary, FL 32746
Chapter 11 Petition Date: December 13, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 24-06781
Judge: Hon. Grace E Robson
Debtor's Counsel: Justin M. Luna, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
201 S. Orange Avenue
Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
E-mail: jluna@lathamluna.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Patrick Schneider as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/S4W4OWA/Linx_of_Lake_Mary_LLC__flmbke-24-06781__0001.0.pdf?mcid=tGE4TAMA
LSR CANYON: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------
The U.S. Trustee for Region 7 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of LSR Canyon, LLC.
About LSR Canyon
LSR Canyon, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Texas Case No.
24-52211) on Nov. 1, 2024, listing $500,001 to $1 million in assets
and $100,001 to $500,000 in liabilities.
Judge Michael M Parker presides over the case.
William R. Davis, Jr. at Langley & Banack, Inc. represents the
Debtor as counsel.
LSR TANGLEWOOD: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The U.S. Trustee for Region 7 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of LSR Tanglewood, LLC.
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. Brad Odell, Esq., at Mullin Hoard & Brown,
LLP, serves as Subchapter V trustee.
Judge Craig A Gargotta presides over the case.
William R. Davis, Jr., Esq., at Langley & Banack, Inc. represents
the Debtor as legal counsel.
LUCENA DAIRY: Court Extends Use of Cash Collateral to Jan. 8
------------------------------------------------------------
Lucena Dairy, Inc. and Luna Dairy, Inc. obtained interim order from
the U.S. Bankruptcy Court for the District of Puerto Rico,
extending the use of cash collateral until Jan. 8 next year.
The extension allows the companies to continue operating during
their Chapter 11 bankruptcy process.
In consideration of such extension, the companies agree to make an
additional payment to Condado in the amount of $20,000 by Dec. 27.
The hearing to consider permanent use of cash collateral has been
rescheduled to Jan. 8.
About Lucena Dairy Inc.
Lucena Dairy Inc. is engaged in the production of cows' milk and
other dairy products and in raising dairy heifer replacements.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. P.R. Case No. 23-02835) on September 8,
2023. In the petition signed by Jorge Lucena Betancourt, president,
the Debtor disclosed $1,905,560 in assets and $11,464,130 in
liabilities.
Judge Edward A. Godoy oversees the case.
Carmen D. Conde Torres, Esq., at C. Conde & Associates, represents
the Debtor as legal counsel.
LUXURY FLUSH: Seeks to Sell Greasezilla System, Vehicles
--------------------------------------------------------
Luxury Flush LLC seeks permission from the U.S. Bankruptcy Court
for the Central District of California, San Fernando Valley
Division, at a hearing on January 7, 2025, to sell Greasezilla
System and other assets.
The Debtor's asset that is up for sale include:
-- Greasezilla mobile system with the purchase price of $350,000
-- 2014 Ram 3500 Crew Cab, Model: Tradesman Pickup, Blue dual
(four wheels in back), one ton
truck, 8 foot bed, 343,335 miles, condition fair, Kelly Blue
Book price range $11,000 to
$15,000, asking price $13,000.
-- 2016 Ram 3500 crew cab, white dually, Model: SLT Pickup, 8 ft
bed, 264,220 miles Condition
fair. Kelly Blue Book price range $12,000 to $16,000. The
proposed asking price is $14,000 and
the minimum proposed sales price is $12,000.
-- 2005 Chevy Silverado LT pickup, 2500 HD Crew Cab, 6 ½ ft. bed.
Condition fair. 20 year old
vehicle, 254,000 miles. Kelly Blue Book price range $5,000 to
$7,000. The Debtor seeks
authority to sell this vehicle for not less than $6,000.
-- 2002 Ford F-350 Super Duty, Crew Cab, Short Bed, 282,000 miles,
fair condition. Kelly Blue Book
value $6,000 to $10,000. The asking price will be $8,000 and the
Debtor seeks authority to sell
the vehicles at not less than $6,000.
The Debtor will sell the Greasezilla to the manufacturer, Downey
Ridge Environmental, while the vehicles will be sold via Facebook
auction rooms and in group chat rooms.
The Debtor will file a notice of the sale and auction with the
Court clerk, in Facebook auction rooms and in group chat rooms
where purchasers of these types of assets typically meet and with
the Danning Gill website.
The Debtor proposes to sell the Assets free and clear of all liens
and interests with any liens or interests to be placed against the
sales proceeds.
About Luxury Flush LLC
Luxury Flush, LLC provides a variety of luxury porta potty restroom
rentals, perfect for weddings, corporate events, home remodels,
production and film, construction, and more.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-10426) on March 18,
2024. In the petition signed by Natalie Downey, managing member,
the Debtor disclosed $5,939,856 in assets and $3,097,630 in
liabilities.
Judge Martin R Barash oversees the case.
Steven R. Fox, Esq., at THE FOX LAW CORPORATION INC., represents
the Debtor as legal counsel.
MAD ENGINE: Silver Point Marks $11.1MM Loan at 20% Off
------------------------------------------------------
Silver Point Specialty Lending Fund has marked its $11,100,000 loan
extended to Mad Engine Global LLC to market at $8,917,018 or 80% of
the outstanding amount, according to a disclosure contained in
Silver Point's Amended Form 10-Q for the quarterly period ended
September 30, 2024 filed with the Securities and Exchange
Commission.
Silver Point is a participant in a First Lien Term Loan to Mad
Engine Global LLC. The loan accrues interest at a rate of 11.3%
(S+7.26%, 1.00% Floor) per annum. The loan is scheduled to mature
on July 15, 2027.
Silver Point Specialty Lending Fund is an externally managed
closed-end management investment company that has elected to be
regulated as a business development company under the Investment
Company Act of 1940, as amended and was originally formed on July
31, 2014. Effective November 15, 2021, Silver Point changed its
name to Silver Point Specialty Lending Fund and converted to a
statutory trust organized under the laws of the State of Maryland.
Silver Point is an emerging growth company under the Jumpstart Our
Business Startups Act of 2012. For so long as Silver Point remains
an emerging growth company under the JOBS Act, it will be subject
to reduced public company reporting requirements.
Silver Point is led by Edward Mulé, Chief Executive Officer; and
Jesse Dorigo, Chief Financial Officer. The Fund can be reached
through:
Edward Mule
Silver Point Specialty Lending Fund
Maryland, Two Greenwich Plaza, Suite 1
Greenwich, CT, 06830
Tel: (203) 542-4200
Mad Engine is engaged in the design, manufacture and wholesale
distribution of licensed and branded apparel to retailers
throughout the United States.
MARTIN SELIG: Warns Lenders of Rising Office Debt Default
---------------------------------------------------------
Anna Edgerton and John Gittelsohn of Bloomberg News report that
Martin Selig Real Estate, a famous Seattle developer, has informed
its lenders that elevated vacancy rates are making it impossible to
repay its debt.
Martin Selig Real Estate disclosed it would not be able to repay a
$379 million loan, linked to nine properties in and around downtown
Seattle, by its April maturity date, according to the commercial
mortgage servicer’s recent commentary. The office buildings,
totaling over 1.6 million square feet, have an average vacancy rate
of about 33%, the report relays.
About Martin Selig Real Estate
Martin Selig provides real estate services. The Company builds,
plans, and develops commercial, retail, and residential properties.
Martin Selig serves clients in the United States. [BN]
MASTEC INC: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on November 7, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by MasTec, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Coral Gables, Florida, MasTec, Inc. is a specialty
contractor operating across a range of industries.
MAYVILLE HOLDINGS: Unsecureds to Split $50K over 3 Years
--------------------------------------------------------
Mayville Holdings, LLC, filed with the U.S. Bankruptcy Court for
the Eastern District of Wisconsin a Plan of Reorganization under
Subchapter V dated November 12, 2024.
The Debtor is single member entity. Its sole member is First
American Properties, LLC. First American Properties, LLC Michael
Eisenga.
Throughout its history, the Debtor owned an assisted living
facility located in Mayville, Wisconsin. Prior to the bankruptcy
filing, the Debtor merged with Advantage Management Mayville, LLC.
Advantage was the operating entity for the facility. Through the
merger the Debtor was the surviving entity. The rental income from
the facility is the primary source of the Debtor's revenue.
The Debtor owns and operates a healthcare facility located in
Mayville, Wisconsin, that provides assisted living and limited
medical services to the elderly persons, including those suffering
from advanced dementia and Alzheimer's disease. The Debtor's
facility has 37 units. The Debtor operates under the trade name,
"Prairie Ridge Assisted Living – Mayville."
The financial projections show the Debtor will have projected
disposable income of approximately $78,000.
First American will continue to manage the Debtor under the Plan.
Neither First American, nor Mr. Eisenga, receive any salary for
managing the Debtor.
The final Plan payment is expected to be paid three years after the
Effective Date. Secured creditors will be paid over a longer period
of time.
This Plan is being proposed under subchapter V of chapter 11 of the
Code. It proposes to pay creditors of the Debtor from future income
from operations.
Non-priority unsecured creditors holding allowed claims will
receive distributions from the Debtor's projected disposable
income. The Debtor has valued distributions to non-priority claims
at approximately 4 cents on the dollar. Distributions will be made
annually on or before the last day of the month after the 12th,
24th and 36th month of the Plan.
Class 2 consists of Non-priority Unsecured Claims. All non-priority
unsecured claims allowed under Section 502 of the Code against the
Debtor estimated to total $1,159,336 will share on a pro rata basis
from a total of $50,000 paid over three years in annual
distributions of $10,000 in year one, $20,000 in year two, and
$20,000 in year three. The distributions will be paid on or before
the last day of the month after the 12th, 24th and 36th month of
the Plan. The intent is to permit the Reorganized Debtor to have
the benefit of a full year of net income to fund the annual
distributions.
Based on the election under Section 1111(b) of the Bankruptcy Code
by Old National, all remaining creditors with Allowed Claims in
Class 2 shall be paid in full from the first annual distribution.
If the Plan is confirmed under Section 1191(b) of the Bankruptcy
Code, then the annual installments shall be reduced by any fees
that the Subchapter V Trustee is paid for the continuing
involvement to monitor payments.
Class 3 interests of the equity security holders in the Debtor
shall retain their interests and are not impaired by the Plan.
The Debtor shall implement the Plan through future income from
operations.
A full-text copy of the Plan of Reorganization dated November 12,
2024 is available at https://urlcurt.com/u?l=pKzFAf from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Evan P. Schmit, Esq.
Kerkman & Dunn
839 N. Jefferson St., Suite 400
Milwaukee, WI 53202-3744
Phone: 414.277.8200
Fax: 414.277.0100
Email: eschmit@kerkmandunn.com
About Mayville Holdings
Mayville Holdings, LLC, a company in Columbus, Wis., owns and
operates an assisted living facility.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Wis. Case No. 23-24460) on Sept. 30,
2023, with $1 million to $10 million in both assets and
liabilities. Iana Vladimirova of Stafford Rosenbaum, LLP serves as
the Subchapter V trustee.
Judge Beth E. Hanan oversees the case.
Evan P. Schmit, Esq., at Kerkman & Dunn, is the Debtor's legal
counsel.
MEGA ENTERTAINMENT: Gets Interim OK to Use Cash Collateral
----------------------------------------------------------
Mega Entertainment Group II, LLC received interim approval from the
U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division to use Foster Bank's cash collateral pending final
hearing.
The interim order signed by Jacqueline Cox approved the use of cash
collateral for post-petition expenses outlined in a budget, with a
10% variance per line item.
Mega was ordered to make monthly payments of $500 to Foster Bank as
adequate protection. In addition, Foster Bank will have a
replacement lien on the proceeds from assets acquired by the
company after its Chapter 11 filing.
Mega must also insure the collateral for its full replacement value
and provide proof to Foster Bank.
A status hearing is scheduled for Jan. 7, 2025. objections must be
filed by Dec. 22.
About Mega Entertainment Group II, LLC
Mega Entertainment Group II LLC -https://www.petergofchicago.com/--
doing business as Petergof Banquet Hall and Pavilion Restaurant &
Lounge, is a limited liability company.
Mega Entertainment Group II LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No.
24-14326) on Sept. 27, 2024. In the petition filed by Alex Field,
as member, the Debtor estimated assets between $100,000 and
$500,000 and estimated liabilities between $1 million and $10
million.
The Debtor is represented by:
Robert R. Benjamin, Esq.
Golan Christie Taglia LLP
577 Waukegan Rd.
Northbrook, IL 60062
MERCER INTERNATIONAL: Egan-Jones Hikes Sr. Unsecured Ratings to B+
------------------------------------------------------------------
Egan-Jones Ratings Company on November 12, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Mercer International, Inc. to B+ from BB-. EJR also
withdrew the rating on commercial paper issued by the Company.
Headquartered in Vancouver, Canada, Mercer International, Inc. owns
and operates three modern pulp mills.
MGM RESORTS: Egan-Jones Retains B Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on November 19, 2024, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by MGM Resorts International. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Las Vegas, Nevada, MGM Resorts International
operates gaming, hospitality, and entertainment resorts.
MIDSTATE BASEMENT: Wins Interim Cash Collateral Access
------------------------------------------------------
Midstate Basement Authorities, Inc. received sixth interim approval
from the U.S. Bankruptcy Court for the Northern District of New
York to use cash collateral.
The interim order authorized Midstate to use $52,139.38 of its
secured creditors' cash collateral to pay operating expenses set
forth in its budget.
First Chatham Bank and other secured creditors will have valid,
binding, enforceable, and perfected continuing rollover liens and
security interests in all collateral. In addition, First Chatham
Bank will receive payment of $4,000 as adequate protection.
The next hearing is scheduled for Dec. 19.
About Midstate Basement Authorities
Midstate Basement Authorities Inc., doing business as Midstate
Concrete Leveling, is a general contracting company that offers
foundation repair, waterproofing, concrete leveling and lifting,
and water control systems. It serves residential and commercial
clients.
Midstate Basement Authorities sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No.
24-30650) on July 29, 2024, with total assets of $811,118 and total
liabilities of $2,337,095. Eric Leach, president of Midstate
Basement Authorities, signed the petition.
Judge Wendy A. Kinsella oversees the case.
The Debtor is represented by Peter A. Orville, Esq., at Orville &
McDonald Law, P.C.
MISS AMERICA: Wants to End Bankruptcy After Debt Payment
--------------------------------------------------------
James Nani of Bloomberg Law reports that Miss America Competition
LLC, the organization behind the Miss America beauty pageant, has
requested a court to dismiss its bankruptcy case less than a month
after filing for creditor protection.
Initially, the company filed for bankruptcy, believing it owed over
$4 million. However, its owner, Glenn Straub, was informed by
former CEO Robin Fleming that the debt had already been settled,
according to a motion to dismiss filed Wednesday in the U.S.
Bankruptcy Court for the Southern District of Florida, the report
states.
About Miss America Competition LLC
Miss America Competition LLC is an annual competition open to women
from the United States between the ages of 18 and 28. The
competition's inception as a "bathing beauty review" was an act of
rebellion during a time when women weren't permitted to wear
swimsuits in public. In 1945, the organization started awarding
scholarships to the winner instead of prize money, making Miss
America one of the first organizations in the United States to
offer college scholarships to women.
Miss America Competition LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-22288) on
November 22, 2024. In the petition filed by Glenn Straub, as sole
member and manager, the Debtor reports estimated assets between
$500,000 and $1 million and estimated liabilities between $1
million and $10 million.
Honorable Bankruptcy Judge Erik P. Kimball handles the case.
The Debtor is represented by:
Craig I. Kelley, Esq.
KELLEY KAPLAN & ELLER, PLLC
1665 Palm Beach Lakes Blvd
The Forum - Suite 1000
West Palm Beach, FL 33401
Tel: 561-491-1200
E-mail: craig@kelleylawoffice.com
MLN US HOLDO: DoubleLine ISF Virtually Writes off $2. 9MM Loan
--------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $2,920,000 loan
extended to MLN US Holdco LLC to market at $168,820 or 6% of the
outstanding amount, according to a disclosure contained in
DoubleLine ISF's Amended Form N-CSR for the six-month period ended
September 30, 2024, filed with the U.S. Securities and Exchange
Commission.
DoubleLine ISF is a participant in a Senior Secured First Lien Term
Loan to MLN US Holdco LLC. The loan accrues interest at a rate of
13.66% (3 Month term SOFR+ 8.75%) per annum. The loan matures on
November 30, 2026.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
MLN US Holdco LLC, dba Mitel, headquartered in Ottawa, Canada,
provides phone systems, collaboration applications (voice, video
calling, audio and web conferencing, instant messaging etc.) and
contact center solutions through on-site and cloud offerings. The
Company’s customer focus is on small and medium sized businesses.
Mitel is majority-owned by private equity firm Searchlight Capital
Partners.
MP REORGANIZATION: Updates Competing Secured Claims; Amends Plan
----------------------------------------------------------------
Ryan Drexler submitted a Disclosure Statement describing Third
Amended Plan of Liquidation for MP Reorganization f/k/a Musclepharm
Corporation dated November 14, 2024.
The Debtor conducted an auction and sale of substantially all of
its Assets to Fitlife Brands, Inc. in October 2023. This Plan
provides a mechanism to distribute the Net Sale Proceeds and any
remaining value in Debtor's limited remaining assets, defined to
include the Excluded Assets and Remaining Assets. In sum, the Plan
sets forth a straight-forward plan to resolve any disputes
regarding the amount and priority of liens in the Net Sale
Proceeds, the Excluded Assets, and the Remaining Assets, and
deliver the proceeds thereof.
In addition, the Plan Proponent believes that there are colorable
claims against certain Insiders of the Debtor and other parties in
interest including, but not limited to, the Empery Parties, the
Committee, and Nick Rubin, former independent director of the
Debtor (the "Independent Director") with respect to their
activities prior to a during the pendency of this Chapter 11 Case.
The Plan provides for a means of further investigation into such
potential Causes of Action (the "Insider Causes of Action"). The
Plan Proponent believes that such claims represent a valuable
source of recovery for general unsecured creditors.
Class 2 consists of Competing Secured Claims. Pursuant to the
Secured Claims Adv. Proceeding, this Court shall establish the
extent, validity, priority, and amount of the Competing Secured
Claims. Upon entry of a Final Order resolving the Secured Claims
Adv. Proceeding, as soon as practicable, the Liquidating Trustee
shall distribute the Net Sale Proceeds and any other Estate Assets,
except the Excluded Assets and Remaining Assets, in accordance with
the Final Order of this Court. All allowed Claims that remain
unsatisfied (undersecured) shall become and be treated as General
Unsecured Claims in Class 4.
Carve-Outs: If Plan Proponent is determined to be the senior
prepetition secured claimholder, pursuant to the Secured Claims
Adv. Proceeding or otherwise, Plan Proponent shall provide a
Carve-Out of his Allowed Secured Claim in one of the following
ways:
* Chapter 11 Trustee Professionals Carve-Out. Plan Proponent
will provide the Chapter 11 Trustee Professionals Carve-Out, but
not the Drexler Carve-Out, for the benefit of the Chapter 11
Professionals.
* Drexler Carve-Out –Alternatively, if one of the three
conditions are satisfied Plan Proponent will provide the Drexler
Carve-Out, but not the Chapter 11 Professionals Carve-Out, for the
benefit of the Chapter 11 Professionals and Class 4 General
Unsecured Class:
-- the Bankruptcy Court determines that there is no creditor
junior to Plan Proponent but senior to the Class 4 General
Unsecured Class;
-- any creditor junior to Plan Proponent but senior to the
Class 4 General Unsecured Class consents;
-- or the Bankruptcy Court otherwise enters an order
authorizing the Drexler Carve-Out.
* If the Drexler Carve-Out is deemed impermissible for any
reason, then Plan Proponent agrees to advance a sum equivalent to
12.5% of the amount that he receives on his Allowed Secured Claim
as a Class 2 secured creditor under this Plan (the "Drexler
Contribution") on or within the later of 10 business days following
(1) the Effective Date of the Plan or (2) entry of any order
determining that Plan Proponent is the senior secured claimholder
and payment to Plan Proponent on account of his Allowed Secured
Claim, so long as the Bankruptcy Court determines that the Drexler
Contribution is not violative of existing law. If the Drexler
Contribution is made, Plan Proponent shall not make the Chapter 11
Trustee Professional Carve-Out or the Drexler Carve-Out. The
Drexler Contribution shall be free and clear of any liens and
administered in accordance with the terms of the Plan. The Drexler
Contribution is not a loan and Plan Proponent will not be entitled
to repayment of the Drexler Contribution.
Like in the prior iteration of the Plan, each holder of an Allowed
General Unsecured Claim shall receive its pro rata share of any
Remaining Assets. The Plan Proponent estimates that the General
Unsecured Claims against the estate total approximately
$24,025,970.00.
The Net Sale Proceeds shall be transferred to the Liquidating
Trustee for distribution in accordance with the terms of the Plan.
Except as otherwise provided in the Plan or in any agreement,
instrument, or other document relating thereto, on or after the
Effective Date, the Liquidating Trust shall be created. On the Plan
Effective Date, the Liquidating Trust shall be vested with the
assets of the Debtor not sold to the Purchaser, nor paid to satisfy
Allowed Secured Claims or Administrative Claims. The Assets
transferred to the Liquidating Trust shall include the Net Sale
Proceeds (if any), all unsold claims, Causes of Action, and
Interests of the Debtor, including all rights, claims, and causes
of action relating to insurance policies.
On the Plan Effective Date, the Liquidating Trust shall receive all
Cash held by the Estate, including the Net Sale Proceeds less any
amount to be paid consistent with the outcome of the litigation to
determine the respective valuations and priorities of the Class 2
Competing Secured Claims (the "Liquidating Trust Cash Balance").
For the avoidance of doubt, any remaining funds in the Wind-Down
Budget shall vest in the Liquidating Trust.
A full-text copy of the Disclosure Statement dated November 14,
2024 is available at https://urlcurt.com/u?l=3jNTVe from
PacerMonitor.com at no charge.
Attorneys for Ryan Drexler:
David Mincin, Esq.
MINCIN LAW, PLLC
7465 W. Lake Mead Boulevard, #100
Las Vegas, Nevada 89128
Phone: 702-852-1957
Email: dmincin@mincinlaw.com
Michael G. Freedman, Esq.
THE FREEDMAN FIRM PC
1801 Century Park East, #450
Los Angeles, CA 90067
Phone: (310)285-2210
Email: michael@thefreedmanfirm.com
About MP Reorganization
MP Reorganization was a scientifically-driven, performance
lifestyle company.
The Debtor sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Nev. Case No. 22-14422) on Dec. 15, 2022, listing
up to $50 million in both assets and liabilities.
Judge Natalie M. Cox oversees the case.
Schwartz Law, PLLC is the Debtor's bankruptcy counsel.
Nathan F. Smith was appointed as trustee in this Chapter 11 case.
He tapped Todd C. Ringstad, Esq., at Ringstad & Sanders LLP as his
counsel.
MR. BIG DREAMS : Liberty Suit Transferred to N.Y. District Court
----------------------------------------------------------------
In the case captioned as JTH TAX, LLC d/b/a LIBERTY TAX SERVICE,
Plaintiff V. KARISMA PAGE; MR. BIG DREAMS INC.; RANDY PAGE; PAGECO,
INC.; DIAMOND EAGLE AGENCY LLC; DIAMOND EAGLE TAXES, INC; DIAMOND
EAGLE LLC; and MARJORIE PAGE, Defendants, Case No. 3:24cv252 (M.D.
Pa.), Judge Julia K. Munley of the United States District Court for
the Middle District of Pennsylvania will grant the defendants'
motion to vacate entries of default and motion to transfer venue to
the United States District Court for the Eastern District of New
York.
This dispute involves seven Liberty Tax Service franchises in the
Stroudsburg, Pennsylvania area and in Brooklyn, New York. On
February 9, 2024, Plaintiff JTH Tax, LLC d/b/a Liberty Tax Service
filed suit against the defendants relative to these franchises. In
short, Liberty asserts that its franchisees and a family member
defied the franchise agreements and unlawfully rebranded Liberty
Tax Services stores to similar-looking, competing businesses called
Diamond Eagle. Per Liberty, the defendants' conduct circumvented
non-competition, non-solicitation, and post-termination obligations
in the franchise agreements.
Counts I and II of the complaint allege that Defendants Karisma
Page, Randy Page, Mr. Big Dreams, Inc., and Pageco, Inc. breached
the franchise agreements with Liberty. Liberty further asserts that
all defendants are liable for conversion (Count Ill), violation of
the Defend Trade Secrets Act of 2016, 18 U.S.C. Sec. 1836, et seq.
(Count IV), and various intellectual property infringements,
including violation of the Lanham Act, 15 U.S.C. Sec. 1125(a)
(Count V). Liberty's complaint contends that Defendants Randy Page,
Pageco, Inc., and Defendant Marjorie Page also engaged in tortious
interference with the franchise agreements in Counts VI and VII.
Additionally, in Count VIII , Liberty claims that all defendants
conspired to tortiously interfere with the franchise agreements.
On March 13, 2024, the Clerk of Court entered default against all
defendants for failure to answer, plead, or otherwise defend
against the complaint pursuant to Rule 55(a) of the Federal Rules
of Civil Procedure. Following notice that Defendants Diamond Eagle
Agency, LLC, Diamond Eagle Taxes, Inc., Mr. Big Dreams, Inc., and
Pageco, Inc. filed Chapter 11 bankruptcy cases in the United States
Bankruptcy Court for the Eastern District of New York, the court
stayed this matter on March 26, 2024. Subsequently, Liberty moved
to lift the stay against Diamond
Eagle, LLC, Karisma Page, Marjorie Page, and Randy Page.
On June 6, 2024, Defendants Karisma Page, Marjorie Page, and Randy
Page ("Page Defendants") filed the instant motions to set aside
the defaults and transfer venue. On July 3, 2024, the Court lifted
the stay as to these defendants only, which brings this case to its
present posture.
Courts must consider three factors when determining whether a
request to set aside default is warranted: (1) whether the
plaintiff will be prejudiced; (2) whether the defendant has a
meritorious defense; and (3) whether the default was the result of
the defendant's culpable conduct.
The Court first considers prejudice to Liberty. Page Defendants
argue that Liberty will suffer no prejudice by setting aside the
defaults. In opposition, Liberty argues that its request for
injunctive relief should favor heavily into the Court's analysis,
highlighting the merits of its claims and asserting that it
continues to suffer irreparable harm.
Judge Munley says, "For the purposes of vacating a default,
prejudice accrues when 'a loss of available evidence, increased
potential for fraud or collusion, or substantial reliance upon the
judgment' occurs. Liberty has offered none of these considerations.
Rather, Liberty has led with its liability evidence against the
defendants as alleged in its complaint, motion for a preliminary
injunction, and brief opposing this motion. Any risk of fraud or
collusion by the defendants is tempered by the proceedings in
bankruptcy court. This factor thus weighs in favor of setting aside
the default."
Section 1412 authorizes transfer "in the interest of justice or for
the convenience of the parties." Consequently, upon consideration
of all the private and public interest factors, the Page Defendants
have met their burden in demonstrating that it is more convenient
and in the interest of justice to transfer this matter to the
Eastern District of New York, the Court finds. Page Defendants'
motion to transfer venue will thus be granted.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=yJHN8k
Mr. Big Dreams, Inc., filed for Chapter 11 bankruptcy protection
(Bankr. E.D.N.Y. Case No. 24-41242) on March 22, 2024, listing
under $1 million in both assets and liabilities. The Debtor is
represented by James J. Rufo, Esq., at Law Office of James J.
Rufo.
NAZARETH LIMO: Charles Persing Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 2 appointed Charles Persing, a
certified public accountant at Bederson, LLP, as Subchapter V
trustee for Nazareth Limo, Inc.
Mr. Persing 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. Persing declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Charles N. Persing, CPA/CFF, CVA, CIRA, CFE
Bederson LLP
100 Passaic Avenue, Suite 310
Fairfield, NJ 07004
Phone: (973) 530-9181
Fax: (862) 926-2481
Email: cpersing@bederson.com
About Nazareth Limo Inc.
Nazareth Limo, Inc., filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y. Case No. 24-23023) on Nov. 20, 2024. The Debtor tapped the
Law Office of James J. Rufo as bankruptcy counsel.
NCR VOJIX: Egan-Jones Retains B- Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company on November 19, 2024, withdrew its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by NCR Voyix Corporation. EJR also withdrew the rating
on commercial paper issued by the Company.
Headquartered in Atlanta, Georgia, NCR Voyix Corporation provides
transaction management systems.
NEEDLE HOLDINGS: DoubleLine ISF Marks $274,199 Loan at 15% Off
--------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $274,199 loan
extended to Needle Holdings LLC to market at $233,069 or 85% of the
outstanding amount, according to a disclosure contained in
DoubleLine ISF's Amended Form N-CSR for the six-month period ended
September 30, 2024, filed with the U.S. Securities and Exchange
Commission.
DoubleLine ISF is a participant in a Senior Secured First Lien Term
Loan to Needle Holdings LLC. The loan accrues interest at a rate of
14.35% (1 Month term SOFR+ 9.50%) per annum. The loan matures on
April 28, 2028.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
Needle Holdings LLC operates as a holding company. The Company,
through its subsidiaries, provides investment services. Needle
Holdings serves customers in the United States.
NEP GROUP: DoubleLine ISF Marks $905,000 Loan at 18% Off
--------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $905,000 loan
extended to NEP Group, Inc to market at $742,553 or 82% of the
outstanding amount, according to a disclosure contained in
DoubleLine ISF's Amended Form N-CSR for the six-month period ended
September 30, 2024, filed with the U.S. Securities and Exchange
Commission.
DoubleLine ISF is a participant in a Senior Secured Second Lien
Term Loan to NEP Group, Inc. The loan accrues interest at a rate of
11.72% (1 Month term SOFR+ 7%) per annum. The loan matures on
October 19, 2026.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
NEP Group Inc provides broadcasting services. The Company is a
supplier to broad spectrum of content across both sports and
entertainment. The Company offers outside broadcast, studio
production, audio, lighting and media management services.
NEW LOAN CO: Secured Party Sets Foreclosure Sale for Dec. 19, 2024
------------------------------------------------------------------
WM Capital Partners 82 LLC ("secured party") will hold a public
foreclosure sale in person on Dec. 19, 2024, at 4:30 p.m. ET at the
offices of Cole Schotz PC, 25 Main Street, Hackensack, New Jersey,
and virtually via online video conference to sell to the highest
qualified bidder all of the right, title and interest of New Loan
Co. - Wm. S. Rich & Son Inc. ("Debtor" or "Borrower") in (a) any
balance or share belonging to the Debtor of any deposit or other
account, which lien and security interests will be independent of
any right of set-off which lender may have, (b) any and all
deposits or other sums at any time credited by or due from lender
to Debtor will at all times constitute security for obligations and
may be set-off against any obligations that are then due, (c) any
and all instruments, documents, policies and certificates or
insurance, securities, goods, accounts, chooses in action, general
intangibles, chattel paper, cash, property arid the proceeds
thereof owned by the Debtor or which Debtor has interest, which now
or hereafter are at any time in possession or control of lender or
in transit by mail or carrier to or from lender or in the
possession of any third party acting in lender's behalf, without
regard to whether lender received the sale in pledge, for
safekeeping, as agent for collection or transmission or otherwise
or whether lender had conditionally released the same, will
constitute security for obligations and may be applied at any time
to obligations which are then due and owing, (d) all inventory, (e)
all accounts and account receivable, together with all documents,
contracts, lien and security instruments and guarantees, relating
thereto, and (f) all goods.
The public sale will be conducted by Mannion Auctions LLC by
Matthew D. Mannion, or other such licensed auctioneer as may be
selected by the secured party, without further publication or
notice. Any parties interested to be a "qualified bidder" must
contact Jim Barr Coleman at +1 (212) 584-6173; email at
jimbarr@wmcapitalpartners.com.
NJ MOBILE: No Patient Complaints, 1st PCO Report Says
-----------------------------------------------------
Joseph Tomaino, the duly appointed patient care ombudsman, filed
his first report regarding the quality of patient care provided by
NJ Mobile Health Care LLC.
The PCO conducted several interviews during the reporting period
with the Debtor which describes having an ambulance service serving
several accounts in New Jersey and supporting 911 operations in
local communities. The Debtor explained that several units which
were financed are being sold, and that once plan is approved, the
company will be ready to resume more operations.
The PCO inquired if the bankruptcy has interfered in any way with
the Debtor's ability to hire and pay staff, purchase supplies, or
meet any other operating expenses. The Debtor denied this and
reported that the company was able to function in the limited
capacity with use of per diem staff.
The PCO noted that no patient complaints have been received during
this initial period.
The ombudsman may be reached at:
Joseph J. Tomaino
Grassi Healthcare Advisors LLC
50 Jericho Quadrangle, 2nd floor
Jericho, NY 11753
(212) 223-5020
About New Jersey Mobile HealthCare
New Jersey Mobile HealthCare, LLC, a company in Mahwah, N.J.,
provides compliance-focused, state-of the-art emergency medical
services (EMS) and ambulance transportation services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-16239) on June 20, 2024,
with $1 million to $10 million in both assets and liabilities.
Louis V. Greco III, manager, signed the petition.
Judge John K. Sherwood presides over the case.
Tracy L. Klestadt, Esq. at Klestadt Winters Jureller Southard &
Stevens, LLP, represents the Debtor as legal counsel.
Joseph J. Tomaino is the patient care ombudsman appointed in the
Debtor's case.
NOBLE'S SONG: To Sell Solomons Property for $1.5-Mil.
-----------------------------------------------------
Noble's Song LLC seeks permission from the U.S. Bankruptcy Court
District of Maryland to sell its Property located at 14532 Solomons
Island Road, S. Solomons, Maryland, free and clear of liens,
claims, encumbrances, and interests.
The Debtor, owned by V. Charles Donnelly and and Deborah A.
Steffen, operates a real property in Southern Maryland, leasing it
and conducting other professional activities connected therewith.
The Property has been through some transfers in ownership and
experienced some history when earlier controlled by minority
member, Donnelly.
The lienholders of the Property include Calvert County real
property taxes, Shore United Bank, Truist Bank, and Interstate
Title and Escrow, LLC.
The Debtor ratifies a contract of sale with buyers, MFT Properties,
LLC; Presa Holdings, LLC; and Bryon Capital, LLC for the purchase
value of $1,300,000.00 "as is" other than a roof repair.
The Property was listed and marketed by the realty firm Century 21
New Millenium at a listing price of $1,500,000.
The Buyer signing person is Mark Frisco, who is both identified
with the Buyer and with a separate but affiliated Century 21
Commercial New Millenium as selling broker.
Emily Cunningham has also signed as a buyer and she is a
representative of a State Farm insurance branch that serves as a
tenant in the Property.
A $12,000.00 deposit has been paid pursuant to the Contract to
Interstate Title & Escrow.
The Debtor proposes to sell the Property free and clear of all
liens, claims, encumbrances, and interests.
About Noble's Song LLC
Noble's Song LLC is primarily engaged in acting as lessors of
buildings used as residences or dwellings, primarily engaged in
renting and leasing real estate properties.
Noble's Song LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 24-10692) on Jan.
26, 2024. In the petition filed by Deborah A. Steffen, as managing
member, the Debtor reported assets between $1 million and $10
million and estimated liabilities between $500,000 and $1 million.
Judge Lori S Simpson presides over the case.
The Debtor is represented by John D. Burns, Esq. at The Burns Law
Firm, LLC.
NOEL RUIZ NURSERY: To Sell 26030 Property for $975,000
------------------------------------------------------
Noel Ruiz Nursery Inc. seeks permission from the U.S. Bankruptcy
Court for the Southern District of Florida, Miami Division, to sell
commercial real property located at 26030 SW 177TH Avenue,
Homestead FL 33031.
The Debtor operates three properties:
-- The 26030 Property is 1.07 acres fronting Krome. BZI Realty
Corp., the first mortgage lender,
has a foreclosure judgment of approximately $787,335 and with an
opinion market value of
$1,020,000.
-- 21630 SW 177th Avenue, Homestead, FL 33031, covering 0.97 acres
fronting Krome. BZI has the
final judgment of foreclosure of $549,000. This property has two
small single-room units, but
its fair market value is $700,000 to $750,000.
-- 16585 SW 177 Avenue, Homestead, FL 33031, covering 2.73 acres
fronting Krome. This property has
various structures and is the Debtor’s operational property
selling fruits, vegetables, soft
drinks, etc. The Debtor is unsure of the current value.
The Debtor proposes to sell the 26030 Property free and clear of
any liens, claims, or encumbrances and the purchase price is
$975,000.
The sale price should be sufficient to pay the first mortgage, the
fees and costs of the Debtor's counsel, and the Sub-five Trustee
and amounts, if any, remaining due to Miami-Dade County.
The Debtor believes that the potential sale is for the best price
the Debtor can obtain, as the recent appraisal valued the Property
at $1,020,000. Because the sales price exceeds the claims against
the Debtor, except for the mortgage debt on the 21630 Property, the
sale price is material only to the Debtor rather than the
Debtor’s creditors or its estate.
About Noel Ruiz Nursery Inc.
Noel Ruiz Nursery, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
24-13317) on April 5, 2024, with $1 million to $10 million in both
assets and liabilities. Arelys Tarraza, vice-president, signed the
petition.
Judge Laurel M. Isicoff presides over the case.
Gary M. Murphree, Esq., at AM Law, LLC represents the Debtor as
bankruptcy counsel.
NORRIS TRAINING: Court OKs 4-Week Extension to Use Cash Collateral
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Texas, Austin
Division, issued an agreed amended final order, allowing Norris
Training Systems, LLC and affiliates to continue to use their
lender's cash collateral.
The Debtors and Modern Bank, N.A. have agreed to extend the use of
cash collateral for an additional four weeks in order to allow the
Debtors to continue to operate their business while working towards
the prosecution and confirmation of a Chapter 11 plan of
reorganization.
The order signed by Judge Shad Robinson approved the use of cash
collateral solely for the four-week period from Nov. 25 to Dec. 22.
About Norris Training
Systems
Norris Training Systems, LLC and its affiliates own and operate
general rental centers. Catering by Norris is a premium catering
Company in Houston and San Antonio. The Debtors also host meetings,
conferences, training programs, and/or trade shows.
Norris Training Systems, LLC and its affiliates filed their
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Tex. Lead Case No. 24-10807) on July 10, 2024.
The petitions were signed by David Norris as president. The
Debtors estimated $10 million to $50 million in both assets and
liabilities.
Judge Shad Robinson presides over the case.
Jennifer F. Wertz, Esq., at Jackson Walker, LLP, is the Debtor's
legal counsel.
NORTHEAST GROCERY: S&P Affirms 'B+' ICR, Outlook Negative
---------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on
Northeast Grocery Inc. and its 'B+' issue-level rating on its
senior secured term loan. The '3' recovery rating on the senior
secured term loan is unchanged, indicating its expectation for
meaningful (50%-70%; rounded estimate: 55%) recovery in the event
of a default.
S&P said, "The negative outlook reflects the risks to our base-case
forecast due to the company's elevated leverage, higher-than-normal
expenses, and intensifying competition amid a cautious consumer
spending environment, which could lead it to sustain S&P Global
Ratings-adjusted leverage of above 4.5x and S&P Global
Ratings-adjusted FOCF to debt of below 5%.
"The negative outlook reflects Northeast Grocery's elevated
leverage and our expectation for continued operating challenges in
fiscal years 2025 and 2026. The company's margin declined in fiscal
year 2024 because of revenue headwinds stemming from reduced SNAP
benefits in its markets as well as competition from discount stores
and inflation in its costs that couldn't be passed to customers.
Due to these factors, Northeast Grocery's S&P Global
Ratings-adjusted EBITDA declined to $387 million in fiscal year
2024, from $421 million the previous year, while its S&P Global
Ratings-adjusted leverage rose to 4.4x from 3.8x.
"We believe the company's operating environment will remain
challenging over the next two years, though we anticipate the
reduction in SNAP benefits will have less of an effect on its
performance. Northeast Grocery has a strong local presence in its
markets and offers customers rewards as well as pharmacy services.
However, we expect intense competition from discount grocers will
continue due to consumers trading down in a stressed environment.
The company is taking action to lower its operating expenses.
However, we expect cost savings to materialize gradually over the
next two years. Although we project Northeast Grocery's leverage
will be about 4.5x through fiscal year 2026, we acknowledge that
further pressure on revenue and margins stemming from competitive
pressures and inflationary impacts, or a failure to lower its
operating expenses, could cause further deterioration in credit
metrics relative to our base case. This would likely cause the
company to sustain leverage of well above 4.5x, which would lead us
to reassess its financial risk.
"We expect Northeast Grocery's leverage will remain elevated in
2025 and 2026 due to lower EBITDA generation. Our base-case
forecast assumes the company increases its revenue by the low
single-digit percent area on the opening of its new stores, as well
as remodels and conversions to the Market 32 banner, which will
help offset the competitive pressures facing its older stores.
Northeast Grocery continued to face margin pressure in the first
half of the year resulting from inflation in its costs that can't
be passed to customers and a stressed consumer environment. We
expect cost-savings initiatives will gradually materialize over the
next two years and that margin pressure will continue but be
somewhat offset by reduced costs related to integration and store
openings. Furthermore, the company will begin to generate income
from its recently acquired ShopRite stores, and we project a
significant benefit from reduced interest this year. Our base case
projects adjusted EBITDA margin compressing to 5.6%, from 5.9% last
year. Therefore, we project Northeast Grocery will generate S&P
Global Ratings-adjusted EBITDA of $370 million-$380 million
annually over the next two fiscal years, which is down from $387
million last year. This leads us to forecast the company's leverage
will be about 4.5x over the next two years. We expect Northeast
Grocery's leverage will decline after fiscal year 2026 due to an
improvement in its EBITDA generation stemming from the realization
of benefits from its cost-savings initiatives and post-merger
synergies coupled with the ongoing amortization payments on its
term loan facility.
"We expect Northeast Grocery's cash flow will improve in 2025
following its weaker 2024 results, which reflected its high capex
and the pressured consumer environment. Revenue and margin
headwinds led to a significant decline in the company's cash flow
from operations last year. Furthermore, Northeast Grocery's
elevated capex on store remodels and conversions caused it to
generate significantly negative FOCF. We expect the company's cash
flow from operations will improve this year, despite low revenue
growth and margin compression, based on significantly lower
interest expense and benefits from integration and reduced one-time
costs. The company experienced a working capital outflow of about
$32 million last year and through the first half of this year,
working capital was an outflow of about $30 million. However, we
anticipate the company will reclaim some of its working capital in
the second half of the year and project a net outflow of about $20
million. In addition, we project Northeast Grocery will spend about
$70 million on capex this year, which compares with $103 million
last year. This leads us to project FOCF of about $36 million in
fiscal 2025, with FOCF to debt in the mid- to high-5% range. We
expect capex will increase to $85 million next year, but FCOF will
improve to the low- to mid-$40 million range with FCOF to debt in
the mid-6% range due improved EBITDA generation. The company had
$140.7 million available under its asset-based lending (ABL)
facility due May 2026 as of Oct. 12, 2024. If Northeast Grocery is
unable to extend its ABL before it becomes current, we would likely
reassess its liquidity and financial risk.
"The negative outlook reflects the risks to our base case stemming
from the pressured consumer environment, reduced SNAP benefits,
increased competition, and inflationary pressures, which could
weaken the expected improvement in Northeast Grocery's credit
metrics (especially related to cash flow) in 2025 and lead it to
sustain metrics that are commensurate with a lower rating. Our
base-case forecast assumes a modest low-single-digit percent
increase in the company's revenue with EBITDA margins in the mid-5%
range and FOCF to debt in the 5% area.
"We could lower our rating on Northeast Grocery if its EBITDA
generation and FOCF decline relative to our base case. Under this
scenario, we would expect the company to sustain S&P Global
Ratings-adjusted leverage of above 4.5x and FOCF to debt less than
5%. We would also expect further market share losses, declines in
Northeast Grocery's traffic and average ticket, and an inability to
reduce its expenditures without further hurting its recovery
prospects.
"Alternatively, we could also consider lowering our rating on the
company if we expect its ABL facility due May 2026 will become
current.
"We could revise our outlook on Northeast Grocery to stable if it
increases its revenue and improves its EBITDA margins such that we
expect it will sustain S&P Global Ratings- adjusted leverage of
below 4.5x and FOCF to debt of well above 5%."
NOVALENT LTD: Creditors to Get Proceeds From Liquidation
--------------------------------------------------------
Novalent, Ltd., and its affiliates filed with the U.S. Bankruptcy
Court for the Eastern District of North Carolina a Disclosure
Statement describing Chapter 11 Plan dated November 13, 2024.
Novalent, Ltd. is a biotechnology engineering firm which
specialized in the development of technology to protect against
germs. Novalent MiddleCo, Inc. is the sole shareholder of Novalent,
Ltd. Novalent Biotech, Inc. is the sole shareholder of Novalent
MiddleCo, Inc.
Novalent, Ltd. was the sole operating entity of the Debtors.
Novalent, Ltd. ceased its business operations on May 31, 2024 due
to continued operating losses. The Debtors determined that the
orderly liquidation of Novalent, Ltd. was in the best interests of
all parties.
Prior to the Petition Date, Novalent hired Iron Horse Auction
Company, Inc., to sell its inventory, equipment and raw materials.
Such auction resulted in net proceeds of $97,961.92.
On Sept. 13, 2024, the Debtors' filed a Motion for Private Sale of
Real Property and to Allow Compensation to Broker ("Real Property
Sale Motion") seeking an Order from the Court for approval of the
sale of that certain real property located at 2317 and 2319 Joe
Brown Road, Greensboro, North Carolina 27455, Parcel ID 79164 and
79167 of the Guilford County Registry ("Real Property") pursuant to
the terms of the Purchase Agreement, and to compensate Broker at a
commission rate of 6% (with such commission to be shared with the
realtor for the Purchaser as provided in the Purchase Agreement).
On October 10, 2024, the Court entered an Order Granting Motion for
Private Sale of Real Property and to Allow Compensation to Broker
("Real Property Sale Order"). The Real Property is currently under
contract for a gross purchase price of $1,800,000.00. As of the
date of this Disclosure Statement, the Debtors expect the closing
on the sale of the Real Property to occur on or before December 31,
2024.
The Plan will be funded from cash on hand and net proceeds from the
sale of the Real Property. The Debtors estimate that the Class 6
General Unsecured Claims total $180,835.
Class 6 is comprised of Allowed General Unsecured Claims and
deficiency Claims scheduled or as otherwise approved by the Court.
Class 6 Claims shall be paid in full from Available Cash within
thirty days after the earlier of (i) the Effective Date; or (ii)
the date that Available Cash becomes available. No Class 6 Claim
shall be entitled to any interest. Class 6 Claims are impaired
under the Plan.
Class 7 consists of the Equity Shareholders of Novalent Biotech,
Inc. as of the Petition Date. The Class 7 equity interests shall be
retained and preserved, subject and subordinate to Debtors'
compliance with the treatment and payment provisions of all other
classes, and subject to the additional provisions of this Plan,
including the mutual release provisions contained herein.
The Debtors shall fund the Plan with (i) the net proceeds of the
court-approved sale of its assets; and (ii) assets of the Debtors
on hand (collectively, the "Distribution Assets"). The Debtors
anticipate that the Distribution Assets will be liquidated prior to
the Effective Date; however, in the event that such Distribution
Assets are not fully liquidated, the Debtor shall liquidate such
assets as soon as reasonably practicable after the Effective Date.
Available cash shall be generated from the Distribution Assets and
will be utilized for the payment of all Classes of Claims under
this Plan.
A full-text copy of the Disclosure Statement dated Nov. 13, 2024 is
available at https://urlcurt.com/u?l=0wY0Jt from PacerMonitor.com
at no charge.
About Novalent Ltd.
Novalent Ltd., formerly known as Indusco, Ltd., is a biotechnology
engineering firm which has pioneered the development of
long-lasting technology to protect against bacteria and viruses.
Novalent Ltd. sought relief under Chapter 11 of the Bankruptcy Code
(Bankr. E.D.N.C. Case No. 24-02756) on Aug. 16, 2024. In the
petition filed by Cameron Harris, as president, the Debtor reports
total assets of $2,102,902 and total liabilities of $12,480,356.
The Honorable Bankruptcy Judge Joseph N. Callaway oversees the
case.
The Debtor is represented by:
Kevin L. Sink, Esq.
WALDREP WALL BABCOCK & BAILEY PLLC
3600 Glenwood Avenue, Suite 210
Raleigh, NC 27612
Tel: 919-589-7985
E-mail: ksink@waldrepwall.com
NOYA HOLDINGS: Cannabis Biz Seeks CCAA, Pursues Sale
----------------------------------------------------
An order was granted by Justice Cavanagh of the Ontario Superior
Court of Justice pursuant to the CCAA granting the Noya Group
various relief including, but not limited to, an initial stay of
proceedings against the Noya Group and its assets through to Nov.
15, 2024. The Court appointed BDO Canada Limited as the monitor of
the Noya Group.
Pursuant to the CCAA Initial Order, the Noya Group is to continue
to carry on business in a manner consistent with the commercially
reasonable preservation of its business and assets while it engages
in a Court-supervised Sale and Investment Solicitation Process
("SISP"). The SISP seeks offers to purchase some or all of the
assets of the Noya Group or an investment in the Noya Group
enabling it to restructure its affairs.
The CCAA Initial Order provides that claims against the Noya Group
for payment for goods and services supplied to the Noya Group prior
to Nov. 6, 2024 are suspended and creditors are prohibited from
continuing or taking any actions or exercising any rights against
the Noya Group, or the Monitor, except with leave of the Court.
You are not required to file a proof of claim at this time.
A copy of the CCAA Initial Order and a list of the names and
addresses and amounts due to the Noya Group’s creditors as
estimated by management of the Noya Group can be found on the
Monitor's website at
https://www.bdo.ca/en-ca/extranets/noya-holdings-incand-noya-cannabis-inc
or by contacting the Monitor directly. Additional materials will be
posted to the Website from time to time and creditors are
encouraged to check the Website regularly for updates as to the
status of the proceedings. The next Court application in the
proceedings is scheduled for Nov. 15, 2024.
Should you have any questions or concerns please contact Maxine
Finnegan of the Monitor, at 519-953-0753 or mfinnegan@bdo.ca.
Monitor can be reached at:
BDO Canada Limited
51 Breithaupt Street, Suite 300
Kitchener, ON N2H 5G5
Robyn Duwyn
Email: rduwyn@bdo.ca
Tel: (519) 578-6910
Counsel for the Monitor
Loopstra Nixon LLP
130 Adelaide Street West, Suite 2800
Toronto, ON M5H 3P5
R. Graham Phoenix
Tel: (416) 748-4776 / (416) 558-4492
Email: gphoenix@LN.Law
Shahrzad Hamraz
Tel: (416) 748-5116
Email: shamraz@LN.Law
Lawyers for Noya Holdings Inc. and Noya Cannabis Inc.
Fogler, Rubinoff LLP
77 King Street West
Suite 3000, P.O. Box 95
TD Centre North Tower
Toronto, ON M5K 1G8
Vern W. DaRe
Tel: 416-941-8842
Fax: 416-941-8852
Email: vdare@foglers.com
Noya Holdings Inc. is an Ontario-based cannabis production
business.
NP HAMPTON: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: NP Hampton Ridge, LLC
180 Avenida La Pata, 2nd Floor
San Clemente CA 92673
Business Description: NP Hampton is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section 101
(51B)).
Chapter 11 Petition Date: December 11, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-13160
Judge: Hon. Theodor Albert
Debtor's Counsel: Haroon Manjlai, Esq.
Masood Khan, Esq.
KHAN LAW GROUP, LC
9431 Haven Ave., Suite 100
Rancho Cucamonga CA 91730
Tel: 951-268-4384
E-mail: mk@khanlegal.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Patrick Nelson as manager.
The Debtor did not attach to the petition a list of its 20 largest
unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/2WARX6A/NP_HAMPTON_RIDGE_LLC__cacbke-24-13160__0001.0.pdf?mcid=tGE4TAMA
NW CUSTOM AIRCRAFT: Case Summary & Six Unsecured Creditors
----------------------------------------------------------
Debtor: NW Custom Aircraft Hangars, LLC
19321 59th Ave NE
Arlington, WA 98223
Business Description: The Debtor owns an airplane hangar located
on leased land owned by Arlington Municipal
Airport at 19321 59th Ave., NE Arlington WA
98223. The current value of the Debtor's
interest on the Property is $1.9 million.
Chapter 11 Petition Date: December 13, 2024
Court: United States Bankruptcy Court
Western District of Washington
Case No.: 24-13188
Judge: Hon. Timothy W Dore
Debtor's Counsel: Thomas D. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
1403 8th Street
Marysville, WA 98270
Tel: (425) 212-4800
Fax: (425) 212-4802
E-mail: courtmail@expresslaw.com
Total Assets: $1,903,500
Total Liabilities: $1,549,542
The petition was signed by Duane Wilcoxon as managing sole member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/JVUGVLA/NW_Custom_Aircraft_Hangars_LLC__wawbke-24-13188__0001.0.pdf?mcid=tGE4TAMA
OAKLAND DIOCESE: Bankruptcy Plan Infeasible, Abuse Victims Contend
------------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that a survivors' committee has
called for the rejection of the Roman Catholic Bishop of Oakland's
bankruptcy plan, accusing the diocese of hiding assets to evade
full accountability for clergy sex abuse claims.
In a court filing Wednesday, December 11, 2024, the committee urged
the U.S. Bankruptcy Court for the Northern District of California
to block the Oakland Catholic jurisdiction from advancing its
Chapter 11 plan or seeking creditor approval, arguing that the
proposal is "patently unconfirmable," the report states.
Representing over 300 clergy abuse claimants, the committee
contends that the diocese is either misrepresenting the value of
its assets or deliberately keeping them inaccessible, according to
Bloomberg Law.
About Roman Catholic Bishop Of Oakland
The Roman Catholic Bishop of Oakland, a tax-exempt religious
organization, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-40523) on May 8,
2023. In the petition signed by Bishop Michael Charles Barber, the
Debtor disclosed $100 million to $500 million in both assets and
liabilities.
Judge William J. Lafferty oversees the case.
The Debtor tapped Foley & Lardner LLP as legal counsel and Alvarez
& Marsal North America, LLC as restructuring advisor. Kurtzman
Carson Consultants LLC is the Debtors' claims and noticing agent
and administrative advisor.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee tapped Lowenstein Sandler, LLP as bankruptcy counsel;
Burns Bair LLP as special insurance counsel; and Berkeley Research
Group, LLC as financial advisor.
OREGON CLEAN: Moody's Hikes Rating on Secured Bank Loans to 'Ba3'
-----------------------------------------------------------------
Moody's Ratings has upgraded Oregon Clean Energy, LLC's (OCE)
senior secured bank credit facilities to Ba3 from B1. The outlook
has been revised to stable from positive.
RATINGS RATIONALE
The rating action at OCE incorporates Moody's view that credit
metrics will continue to improve relative to historical performance
due to higher capacity auction prices in PJM Interconnection,
L.L.C. (Aa2 stable) and, to a lesser extent, stronger energy
margins. Stronger than expected revenues and related cash flow
coupled with credit-friendly credit facility terms embedded in the
mid-2024 refinancing mean that Moody's now expect faster loan
repayment prospects with just over 40% debt outstanding at maturity
under Moody's case. Moody's further understand that OCE is seeking
an amendment from lenders that would lower borrowing margins in the
credit facility owing to the project's strengthened credit profile,
which would further hasten debt repayment prospects if granted by
the lending group. The Ba3 rating also recognizes OCE's position
as a single asset gas-fired power generation facility with exposure
to volatile wholesale energy markets, a risk that is amplified by
OCE's policy to hedge 50% of the plant's capacity when heading into
the summer and winter seasons, which is shorter than most peers.
OCE has produced solid operational performance over the last few
years, with capacity factors of 88% year to date as of September
2024 and 87% in 2023 along with low forced outage rates. The plant
should be able to produce strong cash flows in 2025 at current
forward energy prices; if this occurs, substantial debt paydowns
should follow during this timeframe owing to the strength of the
excess cash flow mechanism. Moody's project that this will result
in credit metrics appropriate for the Ba rating category, with debt
service coverage ratios around 2.2x, project cash flow to debt
about 13% and debt to EBITDA below 4.8x in 2025.
OCE's recent credit metrics have improved throughout FY 2024 where
LTM Q3 2024 Moody's calculates that OCE produced a 2.0x DSCR with
15.7% project cash flow to debt and 4.8x debt to EBITDA. This
financial performance was a vast improvement from full year 2023
where financial results, including cash flow generation, were
negatively impacted by the expenses related to Winter Storm Elliott
in December 2022. Operational outages remain a risk for OCE, but
revisions to capacity performance penalty levels and winterization
upgrades at the plant reduce the likelihood and severity of similar
events in the future, mitigating the cash flow at risk.
RATING OUTLOOK
The stable outlook reflects expectations for OCE to maintain its
strong operational performance and continue to repay debt as higher
capacity prices take effect in June 2025. It also incorporates
expectations for the sustained maintenance of Ba-category financial
metrics, with double-digit cash flow to debt, debt service coverage
above 2x and leverage below 6x.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The rating could be upgraded if there is a continued strengthening
of the PJM capacity auction results that could lead to faster
deleveraging in the next 18 months.
The rating could be downgraded if the project is unable to sustain
double-digit project cash flow to debt and 2.0x debt service
coverage. This could occur if PJM capacity auction results
significantly decrease in next auction, if power prices decline or
if the plant experiences an operational outage.
PROFILE
OCE is located in Lucas County, City of Oregon, Ohio, which is
within PJM's ATSI capacity zone. The project is a natural gas fired
combined cycle plant consisting of a 2x1 combined-cycle unit with
two Siemens SGT6-8000H combustion turbines and generators (CTGs),
two NEM heat recovery steam generators (HRSGs) and a Siemens steam
turbine generator (STG) that has been in operation since July 1,
2017. The project is capable of producing approximately 870 MW at
average annual conditions (approximately 50°F) and over 930 MW at
extreme winter ambient conditions (below 0°F), with full duct
firing.
The project is indirectly owned 50/50 by affiliates of Ares EIF
Management, LLC (Ares EIF) and I Squared Capital (ISQ). Ares EIF is
a wholly-owned subsidiary of publicly traded Ares Management
Corporation, with significant experience in developing power
generation projects in the US ISQ is an independent global
infrastructure investment manager focusing on energy utilities and
transportation in various regions of the globe.
METHODOLOGY
The principal methodology used in these ratings was Power
Generation Projects published in June 2023.
ORGANON & CO: Moody's Rates New Secured First Lien Term Loan 'Ba1'
------------------------------------------------------------------
Moody's Ratings assigned Ba1 ratings to Organon & Co's proposed
euro-denominated senior secured 1st lien term loan B due 2031
(extended from 2028), and repriced USD-denominated senior secured
1st lien term loan B due 2031. There are no changes to Organon's
existing ratings including the Ba2 Corporate Family Rating, the
Ba2-PD Probability of Default Rating, the Ba1 senior secured credit
facility ratings and notes, the B1 senior unsecured rating or the
SGL-1 Speculative Grade Liquidity Rating. The outlook remains
stable.
The euro term loan maturity extension is in conjunction with a
proposed repricing of the company's existing USD term loan due 2031
and revolving credit facility due 2027. Moody's view the proposed
repricing and maturity extension as modestly credit positive due to
marginal interest expense savings and free cash flow improvement.
RATINGS RATIONALE
Organon's Ba2 Corporate Family Rating reflects its niche position
in the global pharmaceutical industry, offering women's health
products, biosimilars, and established off-patent products. Organon
has good diversity at the product and geographic level. The
established brands have good name recognition in global markets.
The women's health franchise has good growth prospects owing to
demographic trends including rising demand for fertility
treatments.
These strengths are offset by limited organic growth owing to the
nature of established brands which face pricing and volume pressure
amid competition from generics. Organon's free cash flow remains
constrained by costs associated with separating from Merck and
restructuring activities. However, free cash flow will continue to
improve as these costs decline over time, facilitating improvement
in credit ratios. There is event risk of acquisitions as the
company is likely to pursue initiatives to improve earnings
growth.
The outlook is stable, reflecting Moody's expectation that Organon
will steadily reduce leverage, with debt/EBITDA approaching 4.5x
over the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade include improvement in
organic growth rates, substantial expansion in free cash flow, and
debt/EBITDA sustained below 3.5x.
Factors that could lead to a downgrade include a significant
contraction in revenue due to pricing pressure or competition,
substantial debt-financed acquisitions, or debt/EBITDA sustained
over 4.5x for a prolonged period.
Headquartered in Jersey City, New Jersey, Organon & Co., is a
global pharmaceutical company with expertise in women's health,
established brands and biosimilars. Revenues in the last twelve
months ending September 30, 2024 totaled $6.4 billion.
The principal methodology used in these ratings was Pharmaceuticals
published in November 2021.
ORIGINAL HAROLD'S: Unsecured Creditors to Get Nothing in Plan
-------------------------------------------------------------
Original Harold's Chicken of Nevada, LLC, submitted a Plan of
Reorganization for Small Business dated Nov. 12, 2024.
This Plan of Reorganization proposes to pay creditors of the Debtor
from rental income. The final Plan payment is expected to be paid
on or about February 1, 2030.
Non-priority general unsecured creditors holding allowed claims
will likely receive no distributions. This Plan also provides for
the payment of administrative and priority claims.
Class 3(A) consists of the Unsecured lease of Sunset Road Plaza LLC
(POC 4-1). The claimant, the lessor on the assumed business
premises lease, has a claim in the amount of $20,754, which shall
be satisfied over the first 20 months starting on the effective
date of the plan, with such amount amortized over 20 months at 4
per cent. Normal monthly payments shall be timely made. This Class
is impaired.
Class 3(B) consists of the Unsecured lease of VW Credit Leasing,
Ltd. (POC 6-1). The claimant, the lessor on a vehicle lease, shall
receive normal monthly payments of $1,400.91 in a timely manner.
This Class is impaired.
Class 3(C) consists of general unsecured claimants. No funds will
be available for distribution to this class. This Class is
impaired.
Class 4 consists of equity security holders of the Debtor. No
treatment other than the continued status quo.
The Debtor shall have revenues from business operations. In
addition, funds may be forthcoming, in an amount in excess of
$100,000 from preference recoveries.
A full-text copy of the Plan of Reorganization dated November 12,
2024 is available at https://urlcurt.com/u?l=TLMgV8 from
PacerMonitor.com at no charge.
About Original Harold's Chicken of Nevada
Original Harold's Chicken of Nevada LLC III is a single member LLC
that owns and operates a fast food chicken restaurant franchise
from leased premises located in Henderson, Nevada.
The owner has great experience in the restaurant business, owning
two similar Original Harold's restaurants in the Las Vegas valley.
The owner also is related to the owner of the Original Harold's
Chicken franchise, which is based out of the Chicago, Illinois area
and which has had multiple successful restaurants for decades.
Original Harold's Chicken of Nevada LLC III sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Nev. Case No. 24-15201) on Oct. 4, 2024. In the petition filed by
Kirsten Pierce, as member and manager, the Debtor estimated assets
and liabilities up to $50,000.
The Debtor is represented by:
David A. Riggi, Esq.
RIGGI LAW FIRM
6320 N Simmons Street
North Las Vegas, NV 89048
OWENS & MINOR: Egan-Jones Retains BB- Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on November 25, 2024, withdrew its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Owens & Minor Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Owens & Minor, Inc. is a global healthcare logistics company. It
was founded in 1882 in Richmond, Virginia, where it remains
headquartered.
PEDIATRIC ASSOCIATES: Moody's Affirms 'B2' CFR, Outlook Stable
--------------------------------------------------------------
Moody's Ratings affirmed the ratings for Pediatric Associates
Holding Company, LLC's including the B2 Corporate Family Rating,
B2-PD Probability of Default Rating, and B2 ratings on the first
lien senior secured bank credit facilities. The outlook is
maintained at stable.
The ratings affirmation reflects the company's moderately high
financial leverage, with adjusted debt/EBITDA around 5.5x LTM
September 30, 2024. Moody's expect the company's growth strategy
will continue in 2025 and that Pediatric Associates will mostly use
free cash flow for its expansion limiting the scope for
deleveraging. Financial leverage increased over the LTM period due
to a more pronounced impact of Medicaid redeterminations in both
Florida and Texas. Florida and Texas redeterminations are
substantially complete and Moody's believe should finish in early
2025. Moody's anticipate that Pediatric Associates' growth through
new clinics and acquisitions will improve scale and increase
earnings despite any lingering impact from redetermination.
The stable outlook reflects Moody's expectation that Pediatric
Associates will actively expand through acquisitions but will also
maintain prudent financial policies and good liquidity.
RATINGS RATIONALE
The B2 CFR reflects the company's moderately high financial
leverage, with adjusted debt/EBITDA around 5.5x LTM September 30,
2024, which Moody's expect will remain in that range as the company
continues to focus on growth and absorbs the impact from Medicaid
redeterminations. The rating is constrained by the company's modest
scale and significant concentration in two states, Florida and
Texas. Further, Moody's believe Pediatric Associates will continue
to actively expand through acquisitions; many of which Moody's
anticipate will be funded with a mix of excess cash and additional
financial debt for larger transactions.
Pediatric Associates benefits from its solid position in the highly
fragmented pediatric care market which offers solid growth
prospects and good profitability. Despite some exposure to direct
government reimbursement (the majority of Pediatric Associates'
value based care revenue is paid by Managed Medicaid), the company
benefits from commercial payer diversification. Predictable revenue
from capitation contracts with commercial payors and a seasoned
executive team also benefit the company.
Pediatric Associates will maintain good liquidity over the next
12-18 months, with no near-term debt maturities. Liquidity is
supported by the undrawn $100 million revolving credit facility and
$47 million of cash as of September 30, 2024. Moody's forecast that
Pediatric associates will generate around $5 to $20 million of free
cash flow annually. The $100 million revolving credit facility has
a springing First Lien Net Leverage Covenant of 7.0x when 35%
drawn. Moody's do not expect Pediatric Associates to rely on the
revolving credit facility, but anticipates that it would maintain
adequate cushions if used. Alternative sources of liquidity are
limited as substantially all assets are pledged. There is no
financial covenant on the term loans.
Pediatric Associates Holding Company, LLC's CIS-4 indicates that
the rating is lower than it would have been if ESG risk exposures
did not exist. Credit exposure to social risks is significant as
Pediatric Associates is reliant on government payors, including
Managed Medicaid, which may face longer-term budgetary pressures.
As a healthcare service provider, Pediatric Associates is also
exposed to labor pressures and human capital constraints.
Governance considerations (G-4) reflect an aggressive financial
strategy to support the company's ambitious growth strategy.
Further, Pediatric Associates is owned by Summit Partners and TPG
Capital, making it more at risk to partake in shareholder friendly
policies that can include debt funded dividends. In addition, the
company has exposure to environmental risks due to geographic
concentration is Florida and Texas.
The stable outlook reflects Moody's expectation that Pediatric
Associates will actively expand through acquisitions but will also
maintain prudent financial policies and good liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if Pediatric Associates' expansion
strategy fails to produce profitable revenue growth or leads to
operating disruption. Factors such as engaging in large debt
financed acquisition or dividends, or if liquidity weakens, could
lead to a downgrade. Additionally, the ratings could be downgraded
if Moody's expect debt/EBITDA to be sustained above 5.5 times.
The ratings could be upgraded if Pediatric Associates demonstrates
a track record of positive free cash flow, and effectively manages
its growth with prudent financial policies. Increased scale and
diversification would also support an upgrade. Further, the ratings
could be upgraded if adjusted debt to EBITDA is sustained below 4.0
times.
Pediatric Associates Holding Company, LLC ("Pediatrics Associates")
is the largest pediatric practice management company in the highly
fragmented US pediatric market. The company employs over 1,200
clinicians seeing over 4.7 million annual visits across seven
states (316 locations). Pediatric Associates offers primary and
specialty care, laboratory, diagnostic and care management
services, as well as 24/7 telehealth access. Pediatric Associates
had $871 million pro forma revenue for the last twelve months ended
Sept. 30, 2024. Pediatric Associates is owned by Summit Partners
and TPG Capital.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
PENINSULA HEIGHTS: Mark Sharf Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a
practicing attorney in Los Angeles, as Subchapter V trustee for
Peninsula Heights Diagnostic Laboratories Inc.,
Mr. Sharf will charge $660 per hour for his services as Subchapter
V trustee and will seek reimbursement for work-related expenses
incurred.
Mr. Sharf declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark Sharf, Esq.
6080 Center Drive, 6th Floor
Los Angeles, CA 90045
Telephone: (323) 612-0202
Email: mark@sharflaw.com
About Peninsula Heights Diagnostic
Peninsula Heights Diagnostic Laboratories Inc., sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif.
Case No. 24-30863) on November 18, 2024, with $50,001 to $100,000
in assets and $500,001 to $1 million in liabilities.
Barzin Barry Sabahat, Esq., at Anchor Law Group represents the
Debtor as legal counsel.
PERFECT VIEW: Wins Interim Cash Collateral Access
-------------------------------------------------
Perfect View Aerial Media, LLC received interim approval from the
U.S. Bankruptcy Court for the Southern District of Florida to use
cash collateral until Dec. 19.
The interim order signed by Judge Peter Russin approved the use of
cash collateral to pay the business expenses set forth in the
company's projected budget, with a 10% variance.
The four-week budget projects total operational expenses of
$127,257.99.
As adequate protection, secured creditors were granted replacement
liens on the company's post-petition property, excluding causes of
action under U.S. Bankruptcy Code Section 542.
The final hearing is scheduled for Dec. 19.
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. Tarek Kiem, Esq., at Kiem Law, PLLC serves
as Subchapter V trustee.
Judge Peter D. Russin oversees the case.
John Page, Esq., at Shraiberg Page, PA serves as the Debtor's
counsel.
PERFORCE SOFTWARE: S&P Rates New $1.082BB First-Lien Term Loan 'B-'
-------------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issue-level rating and '3'
recovery rating to Perforce Software Inc.'s proposed $1.082 billion
first-lien term loan B due 2029. The '3' recovery rating indicates
its expectation for meaningful (50%-70%; rounded estimate: 60%)
recovery in the event of a payment default.
The company will use the proposed term loan to consolidate and
replace its two existing first-lien term loans due July 2026, which
feature similar terms and amortization schedule. As part of the
transaction, the company also intends to extend the maturity of its
$75 million revolver credit facility to 2029.
S&P said, "We view the proposed transaction as leverage neutral.
Our 'B-' issuer credit rating and stable outlook on the company
remain unchanged. Following the Delphix acquisition, Perforce
effectively executed its planned synergies." It has achieved
approximately 95% of its plan, with the remaining portion primarily
consisting of prepaid and contracted software and vendor contracts
that are waiting to expire.
S&P Global Ratings-adjusted leverage has declined to 7x as of Sept.
30, 2024, on a rolling 12-month basis, supported by the realized
savings, continued recurring revenue growth, and a strong retention
rate above 95%. S&P said, "We anticipate leverage will further
decline below our upside trigger; however, we would need to see
stronger free operating cash flow (FOCF), with FOCF to debt
sustaining above 5%, before we would consider an upgrade. Year to
date, the company has reported breakeven FOCF due to the
significant transaction fees and costs associated with the Delphix
acquisition."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors:
-- Perforce's capital structure consists of a $75 million revolver
maturing in 2029; $1.082 billion first-lien term loan maturing in
2029; $374 million first-lien term loan maturing in 2031; and $300
million second-lien term loan maturing in 2027.
-- S&P's hypothetical default scenario considers heightened
competitive and pricing pressures that lead to high customer
attrition and market share losses in 2026. It assumes the revolving
credit facility is 85% drawn on the path to default.
-- The first-lien term loan tranches have a 91-day springing
maturity prior to the second-lien term loan. S&P said, "This does
not currently affect our recovery analysis. However, we may update
our recovery analysis in future surveillance as we obtain new
information or as we approach the springing dates."
-- S&P values Perforce as a going concern because of its
established customer relationships.
-- S&P's 'B-' issue-level rating on the first-lien term loan and
$75 million revolver is based on our '3' recovery rating, which
indicates our expectation for meaningful recovery (50%-70%; rounded
estimate: 60%) in the event of a payment default.
Simulated default assumptions:
-- Year of default: 2026
-- Cyclicality adjustment factor: 5% (standard sector assumption
for software and services)
-- Emergence EBITDA: About $165 million
-- EBITDA multiple: 6.5x
-- Jurisdiction: U.S.
Simplified waterfall:
-- Gross enterprise value: $1.069 billion
-- Net enterprise value (after 5% administrative costs): $1.015
billion
-- Obligor/nonobligor: 70%/30%
-- Collateral value available to first-lien creditors: $909
million
-- First-lien debt claims: $1.55 billion
--Recovery expectations: 50%-70% (rounded estimate: 60%)
*All debt amounts include six months of prepetition interest that
S&P assumes will be owed at default. S&P assumes the revolving
credit facility is 85% drawn on the path to default.
PETROQUEST ENERGY: Gets Court Okay Jan. 2025 Asset Auction
-----------------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that a Delaware
bankruptcy judge has issued an order to proceed with the sale of
the Texas oilfields owned by the bankrupt PetroQuest Energy Inc.,
with the transaction set to be completed by the end of January
2025.
About PetroQuest Energy
PetroQuest Energy Inc. is an oil and gas exploration company in
Lafayette, La.
PetroQuest Energy sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-12609) on November 13,
2024. In its petition, the Debtor reported assets between $100,000
and $500,000 and liabilities of $115.5 million.
Judge Craig T. Goldblatt presides over the case.
The Debtor is represented by Patrick J. Reilley, Esq., at Cole
Schotz P.C.
PHB 2023: Files Chapter 11 Bankruptcy in Alabama
------------------------------------------------
On December 5, 2024, PHB 2023 LLC filed Chapter 11 protection in
the Northern District of Alabama. According to court filing, the
Debtor reports $16,265,517 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 January 8,
2025 at 11:00 AM at Creditor Meeting Room Birmingham.
About PHB 2023 LLC
PHB 2023 LLC is part of the residential building construction
industry.
PHB 2023 LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ala. Case No. 24-03678) on December 5, 2024. In
the petition filed by Misty M. Glass, as manager, the Debtor
reports total assets of $16,265,505 and total liabilities of
$16,265,517.
Honorable Bankruptcy Judge Tamara O. Mitchell handles the case.
The Debtor is represented by:
Stephen P. Leara, Esq.
SPAIN & GILLON, LLC
505 North 20th Street
Suite 1200 The Financial Center
Birmingham, AL 35203
Tel: (205) 328-4100
Fax: (205) 324-8866
E-mail: sleara@spain-gillon.com
PIER 1: Egan-Jones Hikes Senior Unsecured Ratings to BB+
--------------------------------------------------------
Egan-Jones Ratings Company on November 8, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Pier 1 Imports, Inc. to BB+ from BB. EJR also
withdrew the rating on commercial paper issued by the Company.
Headquartered in Fort Worth, Texas, Pier 1 Imports, Inc. is an
importer decorative home furnishings and gifts.
PILGRIM'S PRIDE: Egan-Jones Hikes Senior Unsecured Ratings to BB+
-----------------------------------------------------------------
Egan-Jones Ratings Company on November 8, 2024, upgraded the local
currency senior unsecured ratings on debt issued by Pilgrim's Pride
Corporation to BB+ from BB.
Headquartered in Greeley, Colorado, Pilgrim's Pride Corporation
produces prepared and fresh chicken products in the United States
and Mexico.
PLUMBING CO: Seeks Chapter 11 Bankruptcy in Texas
-------------------------------------------------
On December 6, 2024, The Plumbing Co. Inc. filed Chapter 11
protection in the Northern District of Texas. 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 January 15,
2025 at 2:00 PM, TELEPHONIC MEETING.
About The Plumbing Co. Inc.
The Plumbing Co. Inc. is a locally owned plumbing company.
The Plumbing Co. Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-33984) on December 6,
2024. In the petition filed by Josh Rathbone, as president, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
Honorable Bankruptcy Judge Michelle V. Larson 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
E-mail: joyce@joycelindauer.com
PREMIUM CRANE: Seeks to Use Cash Collateral
-------------------------------------------
Premium Crane, LLC asked the U.S. Bankruptcy Court for the Middle
District of Florida, Tampa Division, for authority to use cash
collateral and provide adequate protection.
The Debtor requires the use of cash collateral to pay ordinary
business expenses.
The creditors that may claim blanket liens against the Debtor's
assets are Center State Bank, CT Corporation System, De Lange
Landen Financial, Financial Agent Services, Financial Pacific
Leasing, First Citizen's Bank, First Corporate Solutions, Flagstar
Bank, Flagstar Financial and Leasing, GM Financial, Jupiter
Financial/Midland, Kubota Credit Corp. USA, M&T Equipment Bank,
Manitowoc Finance, Polaris/Synchrony Bank, Sheffield Financial,
Sheffield Financial Services, and SouthState Bank.
The Debtor estimates that the collective claims of the secured
creditors are secured by $10,000 in cash and $60,000 in accounts
receivable.
As adequate protection for the use of cash collateral, the Debtor
offers the secured creditors the following:
a. Post-petition replacement liens on the secured creditor
assets to the same extent, validity, and priority as existed
pre-petition;
b. The right to inspect the secured creditor assets on 48 hours
notice, provided that said inspection docs not interfere with the
operations of the Debtor; and
c. Copies of monthly financial documents generated in the
ordinary course of business and other information as the secured
creditors may reasonably request with respect to the Debtor's
operations.
About Premium Crane LLC
Premium Crane LLC is a limited liability company.
Premium Crane LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-07071) on
November 27, 2024. In the petition filed by David Anglin, as AMBR,
the Debtor reports total assets of $3,041,564 and total liabilities
of $3,076,549.
Honorable Bankruptcy Judge Roberta A. Colton oversees the case.
The Debtor is represented by Buddy D. Ford, Esq., at Buddy D. Ford,
P.A.
PRETIUM PKG: DoubleLine ISF Marks $2.8MM Loan at 59% Off
--------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $2,860,000 loan
extended to Pretium PKG Holdings, Inc to market at $1,158,300 or
41% of the outstanding amount, according to a disclosure contained
in DoubleLine ISF's Amended Form N-CSR for the six-month period
ended September 30, 2024, filed with the U.S. Securities and
Exchange Commission.
DoubleLine ISF is a participant in a Senior Secured Second Lien
Term Loan to Pretium PKG Holdings, Inc. The loan accrues interest
at a rate of 12.33% (3 Month term SOFR+ 6.75%) per annum. The loan
matures on October 1, 2029.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
Pretium PKG Holdings, Inc. is a manufacturer of rigid plastic
containers for variety of end markets, including food and beverage,
chemicals, healthcare, wellness and personal care. Pretium PKG
Holdings, Inc. is a portfolio company of Clearlake since January
2020.
PRIME HARVEST: Court Okays Appointment of Chapter 11 Trustee
------------------------------------------------------------
Judge Sarah Hall of the U.S. Bankruptcy Court for the Western
District of Oklahoma approved the appointment of Jim Parrack as
Chapter 11 trustee for Prime Harvest, Inc.
The appointment comes upon the application filed by Ilene
Lashinsky, the U.S. Trustee for Region 20, to appoint a bankruptcy
trustee in Prime Harvest's Chapter 11 case.
A copy of the appointment order is available for free at
https://urlcurt.com/u?l=u8C5VM from PacerMonitor.com.
About Prime Harvest
Prime Harvest, Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Okla. Case No. 24-10841) on April 1,
2024. In the petition signed by Calvin Burgess, president, the
Debtor disclosed up to $100 million in assets and up to $50 million
in liabilities.
Stephen J. Moriarty, Esq., at Fellers, Snider, Blankenship, Bailey
& Tippens, PC, serves as the Debtor's legal counsel.
PURDUE PHARMA: McKinsey to Pay $650MM to Settle DOJ Opioid Probe
----------------------------------------------------------------
Ben Penn of Bloomberg Law reports that McKinsey & Co., a global
consulting firm, has agreed to pay $650 million to resolve
allegations of conspiring with Purdue Pharma and other
pharmaceutical companies to misbrand addictive opioids, while
avoiding a guilty plea.
According to Bloomberg Law, under a five-year deferred prosecution
agreement with the Justice Department (DOJ), McKinsey will pay
civil and criminal penalties for its role in advising Purdue on
obtaining FDA approval for OxyContin and boosting its sales.
Prosecutors accused the firm of intentionally aiding Purdue and
other manufacturers in deceptively marketing opioids for
distribution without medically appropriate prescriptions.
"For the first time in history, the Justice Department is holding a
management consulting firm and one of its senior executives
criminally responsible for sales and marketing advice that
facilitated a client’s criminal actions," said Christopher
Kavanaugh, U.S. Attorney for the Western District of Virginia.
Martin Elling, a former McKinsey senior partner, has also agreed to
plead guilty to obstruction of justice for destroying evidence
during the investigation, according to court filings.
The investigation was conducted by U.S. attorney’s offices in the
Western District of Virginia and Massachusetts, along with the
DOJ’s Commercial Litigation Branch, the report states.
McKinsey had previously paid hundreds of millions in 2021 to settle
state claims that its marketing strategies contributed to the U.S.
opioid crisis. In a statement, McKinsey expressed regret, saying:
"We deeply regret our past work with Purdue Pharma and the actions
of a former partner who destroyed documents. We failed to recognize
the harm opioids were causing and should not have undertaken sales
and marketing work for Purdue. This public health crisis will
remain a source of profound regret for our firm."
Although McKinsey did not voluntarily disclose its misconduct, the
DOJ granted cooperation credit for the firm's assistance in the
investigation, including providing key documents and facilitating
interviews.
The DOJ also noted McKinsey's remedial actions, including shutting
down its opioid-related business in 2019, terminating Elling and
another senior partner, and appointing new legal compliance
officers. As part of the resolution, McKinsey is required to
establish a rigorous compliance program to prevent similar issues
in the future.
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.
PURDUE PHARMA: Three Bankruptcy Court Orders Affirmed
-----------------------------------------------------
In the case captioned as STATE OF MARYLAND, Appellant, vs. PURDUE
PHARMA L.P., et al., Appellees, Case No. 24-Civ-7042 (S.D.N.Y.),
the United States District Court for the Southern District of New
York affirmed the orders of the United States Bankruptcy Court for
the Southern District of New York, being:
-- the Thirty-Seventh Amended Order Pursuant to 11 U.S.C. Sec.
105(a) Granting Motion for a Preliminary Injunction, dated
September 6, 2024, Adv. Dkt. No. 533,
-- the Thirty-Eighth Amended Order Pursuant to 11 U.S.C. Sec.
105(a) Granting Motion for a Preliminary Injunction, dated
September 27, 2024, Adv. Dkt. No. 557, and
-- the Thirty-Ninth Amended Order Pursuant to 11 U.S.C. Sec.
105(a) Granting Motion for a Preliminary Injunction, dated November
1, 2024, Adv. 0kt. No. 583.
This appeal is taken from three order that extended a preliminary
injunction issued during the adversary proceeding Purdue Pharma,
L.P., et al. v. Commonwealth of Massachusetts, et al., Adv. Pro.
No. 19-08289, filed in the United States Bankruptcy Court for the
Southern District of New York.
Appellant, the State of Maryland, asks this Court to vacate the
Bankruptcy Court's grant of the Thirty-Seventh Amended Order
Pursuant to 11 U.S.C. Sec. 105(a) Granting Motion for a Preliminary
Injunction, dated September 6, 2024, Adv. Dkt. No. 533, the
Thirty-Eighth Amended Order Pursuant to 11 U.S.C. Sec. 105(a)
Granting Motion for a Preliminary Injunction, dated September 27,
2024, Adv. 0kt. No. 557, and the Thirty-Ninth Amended Order
Pursuant to 11 U.S.C. Sec. 105(a) Granting Motion for a Preliminary
Injunction dated November 1, 2024, Adv. Dkt. No. 583. Since the
oral argument of this appeal, the Debtors have moved for a further
extension. Maryland asserts that same ground for overturning each
of the extension orders.
The preliminary injunction in question was entered shortly after
the Debtors filed petitions in bankruptcy. It enjoins all
governmental and private plaintiffs from continuing or commencing
any judicial, administrative, or other actions, against the Debtors
-- Purdue Pharma L.P., certain affiliated debtors, as debtors or
debtors in possession -- as well as certain non-debtors, including
former or current owners, directors, officers, and other entities
associated with Purdue Pharma L.P. Of specific interest, the
injunction extends to those members of the Sackler Family who at
all relevant times owned and controlled Purdue, as well as entities
(such as trusts) of which the Sackler Family members are owners or
beneficiaries.
This injunction is considerably broader than the automatic stay
that is imposed on most (but not all) litigation against a bankrupt
(and only against a bankrupt) pursuant to 11 U.S.C. Sec. 362(b)(4).
The Bankruptcy Court issued the Preliminary Injunction pursuant to
11 U.S.C. Sec. 105(a) and Fed. R. Bankr. P. 7065, to enjoin what
the automatic stay could not: (1) governmental actions to enforce
regulatory or police powers, and (2) actions against the Related
Parties that might have an impact on the res of the bankruptcy
estate. The Sacklers (some of whom had been officers or directors
of Purdue) had a variety of claims, including claims for
indemnification and contribution, against Purdue's estate, while
Purdue had considerable claims against the Sacklers.
The Preliminary Injunction was entered for the express purpose of
giving the Debtors time to come up with a plan of reorganization.
The Bankruptcy Court recognized that "there should be a serious
effort undertaken with appropriate safeguards to enable the Debtors
and their creditors as a whole to try to resolve the allocation
issues in this case." In order to accomplish that goal, it was
deemed necessary to halt litigation both by and against the
Sacklers.
Appellant, the State of Maryland, was among the Ad Hoc Group of
Non-Consenting States that elected to "voluntarily consent fully to
abide by the terms of the Order." Accordingly, Maryland suspended
an administrative proceeding that it had commenced in May 2019,
against Purdue and certain Related Parties, in which it had alleged
the commission of unfair and deceptive trade practices.
The Preliminary Injunction and the Bankruptcy Court's first
extension order were affirmed on appeal, In re Purdue Pharm. L.P.,
619 B.R. 38 (S.D.N.Y. 2020), and further extended in increments
over five years. But to say that the injunction has been in effect
five years is not quite fair. For most of that time, it was in
effect while litigation over the original plan of reorganization
was pending.
On September 9, 2021, the Debtors submitted the Twelfth Amended
Joint Chapter 11 Plan of Reorganization of Purdue Pharma L.P. and
its Affiliated Debtors. As part of Plan all claims that could be
brought against the Related Parties relating to their affiliation
with Purdue were discharged, without the consent of all affected
claimants and over the objection of some. The Bankruptcy Court
issued an order confirming the 2021 Plan of Reorganization.
Between September 2021 and June 2024, the Preliminary Injunction
remained in effect while a series of appeals ensued. The Bankruptcy
Court's order confirming the 2021 Plan of Reorganization was
overturned by this Court, In re Purdue Pharma, L.P., 635 B.R. 26
(S.D.N.Y. 2021), reinstated by the Second Circuit, In Re Purdue
Pharma L.P., 69 F.4th 45 (2d Cir. 2023), and ultimately overturned
by the United States Supreme Court, Harrington v. Purdue Pharma L.
P., 144 S. Ct. 2071 (2024). The Supreme Court, like this Court,
held that the Bankruptcy Code "does not authorize a release and
injunction that, as part of a plan of reorganization under Chapter
11 , effectively seeks to discharge claims against a non-debtor
without the consent of affected claimants. "No one objected to the
extension of the injunction while the appellate process played
itself out. That this took almost three years is not the fault of
any of the parties to the bankruptcy proceeding.
As of the thirty-fifth extension, the September 6, 2024 Extension
Order, Maryland no longer consented to be voluntarily bound by the
Order and submitted a limited objection to the Debtors' motion to
extend the Preliminary Injunction. Appellant argues that the ratio
decidendi of Harrington precludes Section 105(a) preliminary
injunctions against non-debtor parties because, with non-consensual
releases no longer available to non-debtors, there can be no
permanent injunction against such litigation. In the alternative,
Appellant argues that the Debtors do not satisfy the traditional
standard for a preliminary injunction.
Almost all other parties to the mediation-including the other 49
states and the Official Committee of Unsecured Creditors of Purdue
Pharma L.P., et al. -- either oppose or do not support the reversal
of the Bankruptcy Court's orders. Although Maryland is now a
non-consenting party, it is nonetheless involuntarily bound by the
injunction, so it has undoubted standing to take this appeal.
The Bankruptcy Court weighed the four factors to be considered in
granting a preliminary injunction: the likelihood of success on the
merits; the possibility of irreparable harm to the Debtors' estate
in the absence of the requested injunctive relief; the balance of
the equities; and whether the injunction is in the public interest.
The Bankruptcy Court clarified that the first factor requires
consideration of "the prospect of a successful reorganization that
might come out of a mediation and whether the Debtors are
substantially more likely to reorganize with the injunction in
place." The Bankruptcy Court determined that all four factors
weighed in favor of an extension of the Preliminary Injunction,
citing principally the broad support of the interested parties for
the Preliminary Injunction.
The Bankruptcy Court's Orders extending the Preliminary Injunction
are affirmed.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=oNmTCN
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.
RAZOR ENERGY: Completes Sale to Texcal Energy in CCAA Deal
----------------------------------------------------------
Razor Energy Corp. announces that it has closed the previously
announced sale transaction and ancillary steps pursuant to a
Subscription Agreement, dated October 27, 2024, between Razor
Energy, as vendor, and Texcal Energy Canada Inc., as purchaser, as
amended by a Subscription Agreement Amending Agreement, dated as of
November 27, 2024, and a Subscription Agreement Second Amending
Agreement, dated as of November 30, 2024. The Subscription
Agreement was entered into in connection with the Corporation's
proceedings under the Companies' Creditors Arrangement Act (Canada)
and approved by an order granted by the Court of King's Bench of
Alberta on December 6, 2024.
The Transaction was completed on December 11, 2024. Following the
completion of the Transaction, the Company is wholly owned by the
Purchaser, is no longer a reporting issuer in Canada, and is no
longer subject to the CCAA Proceedings. As previously announced,
all outstanding shares, options, and other equity interests in
Razor Energy have been retracted and cancelled for nominal
consideration of $0.00001 per common share.
Pursuant to the Transaction Approval Order, certain excluded
assets, contracts, and liabilities of the Corporation, which were
not included in the Transaction, have been transferred to and
vested in a newly-incorporated entity. ResidualCo in anticipated to
remain subject to the CCAA Proceedings, pending further order of
the Court.
Copies of the Subscription Agreement and the Transaction Approval
Order, and more information related to the CCAA Proceedings, can be
found on the Court-appointed Monitor's website located at
http://cfcanada.fticonsulting.com/razor-blade.
About Razor Energy Corp.
Razor Energy Corp. -- https://www.razor-energy.com/ -- operates as
an oil and gas company. The Company focuses on acquiring,
producing, and exploration of oil and gas properties. Razor Energy
offers its services in Canada.
RBX INC: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------
Debtor: RBX, Inc.
3551 N. Farm Road 209
Strafford, MO 65757
Business Description: The Debtor is a trucking company in
Missouri.
Chapter 11 Petition Date: December 13, 2024
Court: United States Bankruptcy Court
Western District of Missouri
Case No.: 24-60819
Judge: Hon. Brian T Fenimore
Debtor's Counsel: Sharon L. Stolte, Esq.
SANDBERG PHOENIX & VON GONTARD PC
4600 Madison Ave., Suite 1000
Kansas City, MO 64112
Tel: 816-627-5543
E-mail: sstolte@sandbergphoenix.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $10 million to $50 million
The petition was signed by James A. Keltner as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/GPOTNLQ/RBX_Inc__mowbke-24-60819__0001.0.pdf?mcid=tGE4TAMA
RED LOBSTER: Court Dismisses Major Suit with Prejudice
------------------------------------------------------
Judge Douglas Harpool of the United States District Court for the
Western District of Missouri dismissed the case captioned as
CYNTHIA MAJOR, Plaintiff, v. RED LOBSTER RESTAURANTS, LLC,
Defendant, Case No. 6:23-cv-03331-MDH (W.D. Mo.) with prejudice.
On November 12, 2024 Defendant filed a Notice of Bankruptcy
Confirmation Order showing the United States Bankruptcy Court for
the Middle District of Florida entered an order Confirming the
Joint Chapter 11 Plan for Red Lobster and its Debtor Affiliates.
The Bankruptcy Court Order discharges all claims that accrued prior
to the filing of the bankruptcy petition. Plaintiff filed her
Complaint on October 24, 2023 and Defendant filed its bankruptcy
petition on May 19, 2024. The District Court issued an Order to
Show Cause ordering Plaintiff within five days to show cause why
this case should not be dismissed with prejudice based on
Defendant's bankruptcy discharge. Plaintiff has failed to respond.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=vQQxMf
About Red Lobster Seafood Co.
Red Lobster Management, LLC, owns and operates 705 Red Lobster
seafood restaurants throughout North America. Red Lobster generates
about $2.4 billion of annual revenue. Red Lobster is owned by
private equity firm Golden Gate Capital. On the Web:
http://www.redlobster.com/
Red Lobster Management and its affiliates sought Chapter 11
protection (Bankr. M.D. Fla. Lead Case No. 24-02486) on
May 19, 2024. As part of these filings, Red Lobster has entered
into a stalking horse purchase agreement pursuant to which Red
Lobster will sell its business to an entity formed and controlled
by its existing term lenders.
King & Spalding LLP is lead counsel to the Debtors; Berger
Singerman LLP serves as local counsel; and Blake, Cassel & Graydon,
LLC, represents the Canadian applicants.
Alvarez & Marsal North America, LLC is serving as financial advisor
and providing corporate leadership as Chief Executive and Chief
Restructuring Officers. Jonathan Tibus, a Managing Director at
Alvarez & Marsal, serves as the debtors' CEO.
Hilco Corporate Finance is serving as M&A advisor to Red Lobster.
Keen-Summit is serving as real estate advisor.
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee is represented by Pachulski Stang Ziehl & Jones, LLP.
REDLINE METALS: Court Approves Interim Use of Cash Collateral
-------------------------------------------------------------
Redline Metals, Inc. received ninth interim approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to use the
cash collateral of its senior secured creditor, Old Second National
Bank.
The interim order, signed by Judge Jacqueline Cox on Dec. 10,
authorized the company to use cash to pay payroll and related
expenses up to $45,000 weekly, plus applicable employer paid taxes,
subject to available funds.
The interim order required the company to make adequate protection
payments of $7,500 weekly to the senior secured creditor and set
aside $4,000 weekly for administrative expenses. No payments will
be made to other creditors unless sufficient funds are available.
In addition, Old Second National Bank was granted adequate
protection for its interests in the collateral. This includes
priority security interests and measures to ensure access to the
company's financial records.
The next hearing is scheduled for Dec. 17.
About Redline Metals
Redline Metals, Inc. is a recycling center in Lombard, Ill.
Redline Metals filed Chapter 11 petition (Bankr. N.D. Ill. Case No.
24-12590) on Aug. 27, 2024, with $10 million to $50 million in both
assets and liabilities.
Judge Jacqueline P. Cox oversees the case.
Paul M. Bach, Esq., at Bach Law Offices is the Debtor's bankruptcy
counsel.
REMNANT OF FAITH: Commences Subchapter V Bankruptcy Proceeding
--------------------------------------------------------------
On December 3, 2024, Remnant of Faith filed Chapter 11 protection
in the Eastern District of Texas. According to court filing, the
Debtor reports between $500,000 and $1 million in debt owed to 1
and 49 creditors. The petition states that funds will be available
to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on January 8,
2025 at 3:150 PM, TELEPHONIC MEETING Dial-In Information at
https://www.txeb.uscourts.gov/341info.
About Remnant of Faith
Remnant of Faith, also known as a Remnant of Faith Church of God in
Christ, is a tax-exempt religious organization.
Remnant of Faith sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 24-42939) on
December 3, 2024. In the petition filed by Lorenzo Plater, as
president/CEO/pastor, the Debtor reports estimated assets between
$1 million and $10 million and estimated liabilities between
$500,000 and $1 million.
The Debtor is represented by:
Gary G. Lyon, Esq.
BAILEY JOHNSON & LYON, PLLC
Attn: Gary G. Lyon
6401 W. Eldorado Parkway
McKinney TX 75070
Tel: (214) 620-2034
Email: glyon.attorney@gmail.com
RESTAURANT CORP: Sec. 341(a) Creditors' Meeting on January 13
-------------------------------------------------------------
On December 4, 2024, Restaurant Corp Unlimited LLC filed Chapter 11
protection in the Middle District of Florida. According to court
documents, the Debtor reports between $1 million and $10 million in
debt owed to 1 and 49 creditors. the petition states that funds
will be available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on January 13,
2025 at 1:00 PM, TELEPHONIC MEETING. CONFERENCE LINE:877-801-2055,
PARTICIPANT CODE:8940738#.
About Restaurant Corp Unlimited LLC
Restaurant Corp Unlimited LLC is a fast-casual restaurant, offering
meals served quickly while ensuring unforgettable guest
experiences. It is a premier choice for shoppers seeking a quick
and satisfying bite in malls and airports across the nation.
Restaurant Corp Unlimited LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-06601) on December 4, 2024. In the petition filed by Antonio S.
Lomoriello, as manager, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Grace E. Robson handles the case.
The Debtor is represented by:
R. Scott Shuker, Esq.
SHUKER & DORRIS, P.A.
121 S. Orange Avenue, Suite 1120
Orlando, FL 32801
Tel: (407) 337-2060
E-mail: rshuker@shukerdorris.com
RIN LTD II: Moody's Assigns Ba3 Rating to $5.1MM Class E-R Notes
----------------------------------------------------------------
Moody's Ratings has assigned ratings to five classes of CLO
refinancing notes (the Refinancing Notes) issued by RIN II Ltd.
(the Issuer):
US$217,600,000 Class A-R Floating Rate Senior Notes due 2038,
Assigned Aaa (sf)
US$40,800,000 Class B-R Floating Rate Senior Notes due 2038,
Assigned Aa1 (sf)
US$20,400,000 Class C-R Deferrable Floating Rate Mezzanine Notes
due 2038, Assigned A2 (sf)
US$20,400,000 Class D-R Deferrable Floating Rate Mezzanine Notes
due 2038, Assigned Baa3 (sf)
US$5,100,000 Class E-R Deferrable Floating Rate Mezzanine Notes due
2038, Assigned Ba3 (sf)
RATINGS RATIONALE
The rationale for the ratings is based on Moody's methodology and
considers all relevant risks, particularly those associated with
the project finance collateralized loan obligations' (PF CLO)
portfolio and structure.
The Issuer is a managed cash flow PF CLO. The issued notes will be
collateralized primarily by broadly syndicated senior secured
project finance and corporate infrastructure loans. At least 50.0%
of the portfolio must consist of project finance infrastructure
loans and eligible investments. The PF CLO permits up to 35% of the
portfolio to be in project finance loans in the electricity (gas)
contracted and merchant subsectors. At least 96.0% of the portfolio
must consist of first lien senior secured loans and eligible
investments, and up to 4.0% of the portfolio may consist of
permitted debt securities (senior secured bond, senior secured
note, second priority senior secured note and high-yield bond) and
second lien loans. The portfolio is approximately 57.8% ramped as
of the closing date.
RREEF America L.L.C., a subsidiary of DWS Group GmbH & Co. KGaA
(the Portfolio Advisor) will continue to direct the selection,
acquisition and disposition of the assets on behalf of the Issuer
and may engage in trading activity, including discretionary
trading, during the transaction's extended five year reinvestment
period. Thereafter, reinvestment in assets is not permitted after
the reinvestment period.
In addition to the issuance of the Refinancing Notes, a variety of
other changes to transaction features will occur in connection with
the refinancing. These include: reinstatement and extension of the
reinvestment period; extensions of the stated maturity and non-call
period; changes to certain collateral quality tests; and changes to
the overcollateralization test levels and changes to the base
matrix and modifiers.
Moody's modeled the transaction applying the Monte Carlo simulation
framework in Moody's CDOROM™, as described in the "Project
Finance and Infrastructure Asset CLOs" rating methodology published
in July 2024 and using a cash flow model which estimates expected
loss on a CLO's tranche, as described in the "Moody's Global
Approach to Rating Collateralized Loan Obligations" rating
methodology published in May 2024.
For modeling purposes, Moody's used the following base-case
assumptions:
Par amount: $340,000,000
Weighted Average Rating Factor (WARF) of Project Finance Loans:
2203
Weighted Average Rating Factor (WARF) of Corporate Infrastructure
Loans: 2554
Weighted Average Spread (WAS): 3.02%
Weighted Average Recovery Rate (WARR) of Project Finance Loans:
65.70%
Weighted Average Recovery Rate (WARR) of Corporate Infrastructure
Loans: 58.80%
Weighted Average Life (WAL): 8.0 years
Permitted Debt Securities and Second Lien Loans: 4.0%
Total Obligors: 50
Largest Obligor: 3.50%
Largest 5 Obligors: 17.50%
B2 Default Probability Rating Obligations: 17.00%
B3 Default Probability Rating Obligations: 11.50%
Project Finance Infrastructure Obligors: 50.0%
Corporate Power Infrastructure Obligors: 14.75%
Power Infrastructure Obligors: 44.75%
Methodology Underlying the Rating Action
The methodologies used in these ratings were "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
May 2024.
Factors that would lead to an upgrade or downgrade of the ratings:
The performance of the Refinancing Notes is subject to uncertainty.
The performance of the Refinancing Notes is sensitive to the
performance of the underlying portfolio, which in turn depends on
economic and credit conditions that may change. The Manager's
investment decisions and management of the transaction will also
affect the performance of the Refinancing Notes.
RITE AID: Egan-Jones Withdraws D Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company on November 27, 2024, withdrew its 'D'
foreign currency and local currency senior unsecured ratings on
debt issued by Rite Aid Corporation. EJR also withdrew the rating
on commercial paper issued by the Company.
Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation
operates retail drugstores.
RIVERSIDE FARMERS: Gets OK to Use SBA's Cash Collateral
-------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland issued a
final order allowing Riverside Farmers, LLC to use the cash
collateral of the U.S. Small Business Administration.
The company's accounts and the amounts it received from the
carriers it represents are property of its estate and constitute
cash collateral.
As a means of providing adequate protection to the lender,
Riverside Farmers was authorized to use the pre-bankruptcy
collateral to make the payments due to the lender under the terms
of their loan agreements.
In addition, the SBA will be granted a replacement lien on all
post-petition assets of the company to the same extent and with the
same priority as its pre-bankruptcy liens.
About Riverside Farmers LLC
Riverside Farmers, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Md. Case No. 24-19406) on November
6, 2024. In the petition signed by Kevin Bobkoskie, owner and
principal, the Debtor disclosed up to $500,000 in assets and up to
$500,000 in liabilities.
Judge Maria Ellena Chavez-Ruark oversees the case.
Matthew Abbott, Esq., at Wolff & Orenstein LLC, represents the
Debtor as legal counsel.
ROYAL JET: Gets Interim OK to Use Cash Collateral Until Jan. 31
---------------------------------------------------------------
Royal Jet Car Corp. received interim approval from the U.S.
Bankruptcy Court for the Eastern District of New York to use cash
collateral until Jan. 31 next year.
The interim order signed by Judge Jil Mazer-Marino approved the use
of cash collateral to pay the company's operating expenses in
accordance with its budget.
As adequate protection, the U.S. Small Business Administration will
receive a monthly payment of $300 from the company.
In addition, the SBA will be granted post-petition replacement
liens on the company's assets regardless of whether such assets
were acquired by the company prior to or after its Chapter 11
filing, subject to the carve-out.
About Royal Jet Car Corp.
Royal Jet Car Corp. sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-42508) on July
18, 2023, listing up to $50,000 in assets and $100,001 to $500,000
in liabilities.
Judge Jil Mazer-Marino presides over the case.
Alla Kachan, Esq., at the Law Offices of Alla Kachan P.C., is the
Debtor's bankruptcy counsel.
RYERSON HOLDING: S&P Alters Outlook to Negative, Affirms 'BB-' ICR
------------------------------------------------------------------
S&P Global Ratings revised its outlook on Ryerson Holding Corp. to
negative from stable and affirmed its 'BB-' issuer credit rating.
The negative outlook reflects S&P's expectation that debt to EBITDA
could be elevated at around 5x-6x in 2024 and stay elevated 2025
before recovering to a level appropriate for the rating in 2026
once it ramps up its ongoing investments and market conditions
improve, resulting in restocking and increasing activity levels.
Meaningful cash outlays to ramp up the company’s investments in
its network, coupled with pressured industry conditions and a
slower-than-expected recovery into 2025, will pressure Ryerson’s
earnings this year and next. Seasonal slowdowns in customer buying
patterns and softer pricing and weaker demand in sectors such as
transportation, consumer, and industrial manufacturing affected the
company's 2024 earnings. This comes at a time when the company has
been investing more than $100 million annually in its
infrastructure and network expansion and upgrade plans. S&P said,
"As a result, we expect Ryerson's EBITDA to decline to
approximately $150 million to $160 million in 2024, resulting in
our forecast of debt to EBITDA increasing to around 6x. This
compares with our previous expectation for debt to EBITDA of about
5x for the same period. Earnings have fallen from the post-COVID
peaks in 2021 and 2022, when EBITDA reached as high as $680
million. At the same time, the company's asset-backed lending (ABL)
facility drawings have increased to $524 million, from $433 million
in 2023 and $365 million in 2022. While we believe earnings should
recover, the recovery could be slower in 2025 than previously
expected due to macroeconomic factors such as interest rate
uncertainty (the company has exposure to many interest-rate
sensitive end-markets) and infrastructure spending (which has been
slower than anticipated). As a result, we expect leverage could
stay elevated at around 5x in 2025, before ultimately returning to
more normalized levels of 3x-4x in 2026."
S&P said, "We expect benefits and cost savings from Ryerson’s
start-up of new facilities, technology upgrades, and footprint
rationalization will begin to ramp up in 2025 and 2026. The company
spent more than $100 million per year since 2022 to upgrade
existing facilities and build two new facilities to replace older
locations. These upgrades and investments came after about a decade
of prioritizing interest payment over capital investment. The
completion of investments into its footprint modernization should
support future profitability growth from structural cost reductions
by replacing older legacy operations. However, while this has been
ongoing, the company has had to duplicate logistics costs and bulk
up inventories to meet customers' orders. The company estimates
these efforts and other cost-saving initiatives will likely result
in $60 million of annual cost reduction by 2025. Ryerson is ramping
up two new service centers-- in University Park, Ill. and
Centralia, Wash.-- and has also completed expansion projects at
several of its sites, as well as an ongoing expansion at its
Shelbyville, Ky. location. Upon completion, the company estimates a
through-cycle run-rate EBITDA of $350 million to $400 million with
these improvements. We expect elevated capex costs of about $110
million in 2024 will taper to about $50 million in 2025, as the
projects wrap up and that the company could generate earnings to
begin to repay elevated ABL borrowings at that time."
Ryerson has demonstrated earnings swings of this magnitude in the
past, with the most recent peak to trough EBITDA swings occurring
in the past three years. It's S&P Global Ratings-adjusted EBITDA
reached $680 million in 2022 from $144 million in 2020 and leverage
peaked at 7.3x in 2020 and recovered to 1x by 2022. In 2022,
following strong cash generation and with proceeds from sale-lease
back transactions, the company was able to redeem all of its
outstanding high-yield debt and now operates with a sizeable ABL to
fund the needs of its business. The capital structure is intended
to provide flexibility from Ryerson's counter cyclical cash flows.
Ryerson’s counter-cyclical cash flow generation, means it
typically consumes significant cash from working capital when the
market is ramping up and releases cash from working capital when
the market declines. The ABL supports liquidity and working capital
investment in a rising steel price environment and working capital
provides a source of cash in weak market conditions, that can go
towards reducing ABL drawings to help offset increases in leverage
from weaker earnings. As capex declines, S&P anticipates more cash
flow available to for ABL repayment through a cycle.
S&P said, "The negative outlook reflects our expectation of debt to
EBITDA could be around 5x-6x this year and the next before
recovering to 3x-4x in 2026, as the company completes its ongoing
investments amid uncertain market conditions and fluctuating
commodity prices. We expect the company will bring its investment
projects online without interruption and that they will generate
positive free cash flow, even during periods of higher leverage.
"We could lower the rating if we expect debt to EBITDA will remain
above 4x going into 2026, signaling a prolonged decline in demand
and macroeconomic conditions, resulting in another year of trough
earnings and increasing ABL drawings. This could also occur should
the company encounter meaningful operational hiccups as they ramp
up their new investments.
"We could revise the outlook on Ryerson back to stable if the
company realizes improvements from its investment spending and if
they persist through challenging macroeconomic and industry
conditions. In this scenario, we would expect debt to EBITDA below
4x."
SCREENVISION LLC: Moody's Cuts CFR to 'Caa3', Outlook Negative
--------------------------------------------------------------
Moody's Ratings downgraded Screenvision, LLC's ratings, including
the Corporate Family Rating and Senior Secured First Lien Bank
Credit Facility rating to Caa3 from Caa2 and the Probability of
Default Rating to Caa3-PD from Caa2-PD. The outlook remains
negative.
The rating downgrades reflect Moody's view that the likelihood of a
balance sheet restructuring has increased given the company's debt
maturities between March - July 2025, weaker than expected recent
operating performance and Moody's view that the capital structure
is unsustainable.
RATINGS RATIONALE
Screenvision's Caa3 CFR reflects its high leverage, weak liquidity
and high refinancing risk and Moody's view that the company's
capital structure is unsustainable. The rating is also constrained
by the secular trends within the cinema industry that may prevent a
strong and sustained recovery in attendance over the medium term.
While Moody's believe that cinemas provide an enduring form of
entertainment, subscribers on streaming platforms have grown
strongly which may continue to pressure cinema attendance.
The company's performance has improved since the pandemic but
remains weak. A further recovery is expected in 2025 as the
Hollywood strike effects fade, with a stronger movie line-up and
increased advertising demand, including cinema advertising. As of
LTM September 2024, the company's Moody's-adjusted Debt/EBITDA was
9x (up from 7.6x at the end of 2023) and Moody's-adjusted interest
coverage measured as (EBITDA-Capex)/Interest Expense was 0.8x.
Screenvision garners support from its well-established market
position for on-screen cinema advertising and its long-term
contracts with cinema owners, which provide some stability to cash
flow when ad spending improves and studios return to a more
consistent cadence of new films with broad consumer appeal. The
company is one of the top two providers of in-theater on-screen
advertising in the US. Exhibitors and advertisers benefit from the
national scale and geographic reach that the company's platform
provides.
Screenvision's liquidity is weak, constrained by its low cash
balance, small and fully drawn revolver and looming debt maturities
in 2025. Its free cash flow was limited, around $5 million as of
LTM September 2024 and cash balance was $6.6 million as of
September 30, 2024. Screenvision faces the maturity of its $10.5
million revolver ($9 million outstanding balance as of September
30, 2024) on March 01, 2025, the $25 million incremental loan ($13
million outstanding balance at September 30, 2024, including PIK
interest) on May 31, 2025 and the $175 million senior secured term
loan due in July 2025 ($144 million outstanding as of September 30,
2024). Screenvision's weak free cash flow, high leverage and
minimal liquidity are challenging the company's ability to address
its near-term maturities.
Screenvision's first lien credit facility is rated Caa3, reflecting
the company's Caa3-PD Probability of Default Rating, an average
expected family recovery rate of 50% at default given the
covenant-lite structure and the credit facility's ranking in the
capital stack.
Screenvision's CIS-5 ESG credit impact score indicates that ESG
considerations have a pronounced impact on the current rating,
which is lower than it would have been if ESG risks did not exist.
The score reflects the company's exposure to governance risks as
well as social and demographic changes that have contributed to a
secular decline in cinema attendance and cinema ad demand.
Screenvision's financial policy has been tolerant of high leverage
and the near-term maturity of its debt facilities over the past
three years. The company's lack of an independent board,
concentrated ownership and voting control by a private equity
sponsor Abry contribute to governance risks.
The negative outlook reflects Moody's view that the company's
capital structure is unsustainable, which heightens the risk of a
distressed exchange transaction.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if a refinancing of maturing debt and
material improvement in liquidity supports the potential for a more
sustainable capital structure.
The ratings could be downgraded if the company defaults on its
financial obligations or if the prospects for recovery further
decline.
Screenvision, headquartered in New York City, is a privately owned
operator of a leading in-theater advertising network in the United
States. The company is majority-owned by affiliates of Abry (about
74%), with ownership stakes also held by AMC Entertainment
Holdings, Inc. (18%) and the company's management.
The principal methodology used in these ratings was Media published
in June 2021.
SEAQUEST HOLDINGS: Gets Interim OK to Use Cash Collateral
---------------------------------------------------------
SeaQuest Holdings, LLC received interim approval from the U.S.
Bankruptcy Court for the District of Idaho to use cash collateral
until Dec. 20.
The company requires the use of cash collateral to pay its ongoing
operating expenses, including payroll.
The company experienced unprecedented disruption to its core
business during COVID which ultimately was the catalyst that caused
the current situation to transpire. More specifically, lower
visitor counts due to retail sites not being developed as planned
by landlords due to COVID impact; retail customer buying habits due
to COVID; high pre-COVID rent rates and obligations; and debt
accrued during the COVID era now requiring payback with rising
overall costs due to inflation –- all led to closing several
locations and continued cash-flow issues.
The U.S. Small Business Administration, Finwise, and Jeff Cox
assert a security interest in the company's cash collateral. As
adequate protection, these secured lenders were granted liens on
all post-petition cash collateral to the same extent and with the
same priority as their pre-bankruptcy liens.
The final hearing is scheduled for Dec. 20.
About SeaQuest Holdings LLC
SeaQuest Holdings, LLC better known as SeaQuest, is an interactive
marine, exotic mammal, and bird/reptile life attraction chain.
Guests are encouraged to connect with animals and learn about their
ecosystems through various hands-on activities which include
hand-feeding sharks, stingrays, birds, and tropical animals.
SeaQuest offers a private event venue ideal for school field trips,
birthday parties, and more.
SeaQuest Holdings sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Idaho Case No. 24-00803) on December 2,
2024, with total assets of $659,473 and total liabilities of
$16,653,877. Aaron Neilsen, chief executive officer of SeaQuest
Holdings, signed the petition.
Judge Benjamin P. Hursh handles the case.
The Debtor is represented by Matthew Christensen, Esq., at Johnson
May.
SEARS AUTHORIZED: Files $177MM Suit vs. ESL Investments, et al.
---------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that the bankruptcy trustee
handling the liquidation of Sears Hometown Stores Inc. has filed a
lawsuit against corporate entities connected to investor and former
Sears CEO Eddie Lampert, demanding at least $177 million for their
involvement in the retailer's downfall.
On Wednesday, December 11, 2024, trustee Jeoffrey L. Burtch filed
the complaint in the U.S. Bankruptcy Court for the District of
Delaware against ESL Investments Inc., Transform Holdco LLC, and
several other affiliated entities that now own and operate the
remaining assets of the Sears business, the report states.
About Sears Authorized Hometown Stores
Sears Authorized Hometown Stores, LLC distributes products through
approximately 121 "Sears Hometown Stores," which are locally owned
and operated businesses that offer a selection of the trusted names
in home appliances, lawn and garden equipment, and tools.
Sears Authorized Hometown Stores, LLC and Sears Hometown Stores,
Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Lead Case No. 22-11303) on Dec. 12, 2022.
In the petition signed by Elissa Robertson, CEO, Sears Authorized
Hometown disclosed up to $50 million in assets and up to $100
million in liabilities.
Judge Laurie Selber Silverstein oversees the cases.
Saul Ewing LLP is the Debtors' legal counsel. The Debtors tapped
Gray & Company, LLC as financial advisor and Stretto as claims and
noticing agent.
SEMINOLE HOSPITAL: Moody's Lowers Issuer & GOLT Ratings to Caa2
---------------------------------------------------------------
Moody's Ratings has downgraded Seminole Hospital District (Gaines
County), TX's issuer and general obligation limited tax (GOLT)
ratings to Caa2 from Caa1. The district has approximately $32.2
million of debt outstanding.
The downgrade to Caa2 is attributed to the district's continuous
reduction in liquidity, growth in deferred payables, the board's
reluctance to balance operations by enhancing revenue or cutting
expenditures, and ongoing uncertainty regarding management's
capability to promptly fulfill debt service obligations.
RATINGS RATIONALE
The downgrade to Caa2 reflects the Seminole board of directors'
continued reluctance to balance operations by adequately increase
property tax rates to offset expenditures, leading to a significant
deterioration in the district's financial profile. This decline is
characterized by reduced liquidity and reliance on short-term notes
instead of enhancing revenue, despite having ample capacity to
raise property taxes. Additionally, there are concerns over meeting
future debt service payments, especially given the history of
delayed payments in 2022 and 2023 and the $3 million short-term
note debt service payment due in early fiscal 2025. These factors
raise questions about the hospital's ability to maintain operations
and promptly meet debt service obligations.
The district faces considerable challenges with deferred payables
in fiscal years 2023 and 2024, outstanding payables of
approximately $10 million as of September 30, 2024, and a total
debt service payment of $5.4 million due in February 2025. At the
end of fiscal 2023, unrestricted cash had decreased to $306,000,
representing only 2 days' worth of cash on hand, with unrestricted
net assets standing at negative $7.1 million. Additional financial
pressures include the district's small operational size, a volatile
tax base dependent on the oil and gas industry, and uncertain
prospects for improved liquidity.
Governance remains a key driver of the downgrade, with Seminole's
unconventional administrative practices and high turnover among
senior management positions posing ongoing challenges for the
district.
The lack of distinction between the district's Caa2 issuer and Caa2
GOLT rating is based on sizeable headroom under the statutory
limitation which allows for significant capacity to pay debt
service.
RATING OUTLOOK
Moody's do not assign outlooks to local governments with this
amount of debt outstanding.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Reduction in default risk
-- Improvement and stabilization of operating performance and
liquidity without resorting to further delaying account payables or
issuing temporary bank notes
-- Willingness to sufficiently enhance revenues to sufficiently
cover operations and debt service
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Failure to pay bonds or notes on time, debt service default,
and/or plans for bankruptcy proceedings
-- Continued weak operating margins resulting in additional
financial distress
-- Contraction of the tax base without sufficient adjustment of
tax levies
LEGAL SECURITY
The bonds constitute direct obligations of the district, payable
from the levy and collection of a direct and continuing ad valorem
tax levied on all taxable property within the district, within the
limits prescribed by law. The maximum ad valorem tax rate is
limited to $7.50 per $1,000 of assessed value for all purposes.
PROFILE
Seminole Hospital District is in Gaines County, Texas and is
roughly 70 miles north of the City of Midland (Aa1 stable) and 80
miles south of the City of Lubbock (Aa2 stable). The hospital is a
crucial access point with 25 authorized beds, 18 for acute care and
7 for swing care, which is intermediate care. The tax base is
substantial and fluctuating, with approximately 42% of the top
taxpayers being related to the oil and gas industry.
METHODOLOGY
The principal methodology used in these ratings was US Special
Purpose District General Obligation Debt Methodology published in
November 2022.
SGZ GROUP: Stephen Gray Named Subchapter V Trustee
--------------------------------------------------
The U.S. Trustee for Region 1 appointed Stephen Gray of Gray &
Company, LLC as Subchapter V trustee for SGZ Group, Inc., d/b/a
Kendall Press.
Mr. Gray will be paid an hourly fee of $900 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Gray 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 S. Gray
Gray & Company, LLC
207 Union Wharf
Boston, MA 02109
(617) 875-6404
Email: ssg@grayandcompanyllc.com
About SGZ Group Inc.
SGZ Group Inc., doing business as Kendall Press, was founded in
Kendall Square, Cambridge, MA in 1986 as a commercial print and
sign company serving the Boston and Cambridge community. Today, the
Company has evolved to become a full-service content production
company delivering printed and digital media in support of
marketing, sales, and experiential initiatives to leading
businesses in the Boston region and beyond.
SGZ Group sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Mass. Case No. 24-12330) on November 20, 2024. In
the petition filed by J. Edward Christopher, as president, the
Debtor reports total assets of $351,334 and total liabilities of
$1,397,764.
The Debtor is represented by:
David B. Madoff, Esq.
Madoff & Khuory, LLP
124 Washington Street, Suite 202
Foxborough, MA 02035
Tel: 508-543-0040
Fax: 508-543-0020
E-mail: alston@mandkllp.com
SHANKARA LLC: Case Summary & Five Unsecured Creditors
-----------------------------------------------------
Debtor: Shankara, LLC
1016 N. Martin Luther King Hwy
Lake Charles, LA 70601
Chapter 11 Petition Date: December 12, 2024
Court: United States Bankruptcy Court
Western District of Louisiana
Case No.: 24-20562
Judge: Hon. John W. Kolwe
Debtor's Counsel: Wade N. Kelly, Esq.
Wade N. Kelly Packard LaPray
WADE N KELLEY, LLC
Packard LaPray
2201 Oak Park Boulevard
Lake Charles, LA 70601
Tel: 337-431-7170
E-mail: staff@packardlaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sanjay Desai as manager/member.
A copy of the Debtor's list of five unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/QLT7QBY/Shankara_LLC__lawbke-24-20562__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/QPWFSIA/Shankara_LLC__lawbke-24-20562__0001.0.pdf?mcid=tGE4TAMA
SIGNATURE MECHANICAL: Claims to be Paid From Continued Operations
-----------------------------------------------------------------
Signature Mechanical Inc. filed with the U.S. Bankruptcy Court for
the District of Arizona a Plan of Reorganization under Subchapter V
dated November 12, 2024.
The Debtor is a construction company and general contractor
specializing in commercial HVAC, electrical and plumbing
installations. The Debtor is owned 100% by Steven G. Higgins. Mr.
Higgins became the owner of the business in May of 2014.
There are numerous claims in this case to hard money lenders with
high interest rates and short repayment terms. The hard money loans
were taken out as a result of non-payment by Perfection Granite
Company for work performed by the Debtor. The Debtor's income was
not sufficient to keep all of these hard money loans current. The
bankruptcy Petition was filed on August 12, 2024.
By this Plan the Debtor is seeking to retain all of its personal
property and continue its business as a construction company and
general contractor specializing in HVAC, electrical and plumbing
installations, as the Reorganized Debtor.
The treatment in this Plan is in full and complete satisfaction of
the legal, contractual, and equitable rights (including any liens)
that each entity holding a claim or an interest may have in or
against the Debtor, the Estate, or their respective property.
Class Six shall consist of all Allowed General Unsecured Claims.
Class Six will be paid $340.00 per month for months 13 through 24,
$735.00 per month for months 25 through 36, $1,145.00 per month for
months 37 through 46, $1,858.00 per month for months 47 and 48, and
$2,275.00 per month for months 49 through 60, pro rata. Class Six
is Impaired.
The Plan will be implemented, in part, as follows:
* Months 1 to 12. The Debtor shall pay $8,112.74 per month for
months 1 through 12, to be distributed as follows: Ascentium -
$304.07 per month; First Citizens - $1,774.22 per month; Ford -
$818.04 per month; Mulligan Funding, LLC - $1,486.44; and the U.S.
Small Business Administration - $3,729.97 per month.
* Months 13 to 24. The Debtor shall pay $8,452.74 per month
for months 13 through 24, to be distributed as follows: Ascentium -
$304.07 per month; First Citizens - $1,774.22 per month; Ford -
$818.04 per month; Mulligan Funding, LLC - $1,486.44; the U.S.
Small Business Administration - $3,729.97 per month; and General
Unsecured Creditors, pro rata, $340.00 per month.
* Months 25 to 36. The Debtor shall pay $8,847.74 per month
for months 25 through 36, to be distributed as follows: Ascentium -
$304.07 per month; First Citizens - $1,774.22 per month; Ford -
$818.04 per month; Mulligan Funding, LLC - $1,486.44; the U.S.
Small Business Administration - $3,729.97 per month; and General
Unsecured Creditors, pro rata, $735.00 per month.
* Months 37 to 46. The Debtor shall pay $9,257.74 per month
for months 37 through 46, to be distributed as follows: Ascentium -
$304.07 per month; First Citizens - $1,774.22 per month; Ford -
$818.04 per month; Mulligan Funding, LLC - $1,486.44; the U.S.
Small Business Administration - $3,729.97 per month; and General
Unsecured Creditors, pro rata, $1,145.00 per month.
* Months 47 and 48. The Debtor shall pay $9,970.74 per month
for months 47 and 48, to be distributed as follows: Ascentium -
$304.07 per month; First Citizens - $1,774.22 per month; Ford -
$818.04 per month; Mulligan Funding, LLC - $1,486.44; the U.S.
Small Business Administration - $3,729.97 per month; and General
Unsecured Creditors, pro rata, $1,858.00 per month.
* Months 49 to 60. The Debtor shall pay $10,387.74 per month
for months 49 through 60, to be distributed as follows: Ascentium -
$304.07 per month; First Citizens - $1,774.22 per month; Ford -
$818.04 per month; Mulligan Funding, LLC - $1,486.44; the U.S.
Small Business Administration - $3,729.97 per month; and General
Unsecured Creditors, pro rata, $2,275.00 per month.
As of the Effective Date of the Plan, the property, and all Claims
of the bankruptcy Estate, shall be vested in the Reorganized
Debtor. Steven G. Higgins will be the 100% owner of the Reorganized
Debtor. In addition, except as otherwise provided in the Plan or
the Confirmation Order, entry of the Confirmation Order shall vest
in Debtor, as of the Effective Date, all assets acquired pursuant
to this Plan.
A full-text copy of the Plan of Reorganization dated November 12,
2024 is available at https://urlcurt.com/u?l=16iVSH from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Ronald J. Ellett, Esq.
Ellett Law Offices, P.C.
2999 North 44th Street, Suite 330
Phoenix, AZ 85108
Telephone: (602) 235-9510
About Signature Mechanical
Signature Mechanical Inc. is a construction company and general
contractor specializing in commercial HVAC, electrical and plumbing
installations.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06640) on August 12,
2024, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Daniel P. Collins presides over the case.
Ronald J. Ellett, at Ellett Law Offices, P.C., is the Debtor's
bankruptcy counsel.
SILVERGATE CAPITAL: Slams Stockholder's Take Over Bid in Chapter 11
-------------------------------------------------------------------
Jeff Montgomery of Law360 reports that bankrupt crypto-bank
Silvergate has criticized Stilwell Activist Investments LP, an
activist investor fund, for attempting to disrupt the debtor's
exclusive control over its Chapter 11 proceedings in Delaware.
Silvergate alleges that Stilwell, a common stockholder, is opposing
exclusivity in order to avoid a legitimate plan to liquidate the
bank's now nonviable cryptocurrency-focused business, the report
states.
About Silvergate Capital Corporation
Silvergate Capital Corporation is a Maryland corporation
headquartered in La Jolla, Calif. Until July 1, 2024, Silvergate
was a bank holding company subject to supervision by the Board of
Governors of the Federal Reserve.
Silvergate filed a voluntary Chapter 11 petition (Bankr. D. Del.
Lead Case No. 24-12158) on Sept. 17, 2024, listing $100 million to
$500 million in assets and $10 million to $50 million in
liabilities. Elaine Hetrick, chief administrative officer, signed
the petition.
Paul N. Heath, Esq., at Richards, Layton & Finger, P.A., is the
Debtor's legal counsel.
SKILLSOFT FINANCE II: DoubleLine ISF Marks $1.3MM Loan at 18% Off
-----------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $1,326,585 loan
extended to Skillsoft Finance II, Inc to market at $1,089,577 or
82% of the outstanding amount, according to a disclosure contained
in DoubleLine ISF's Amended Form N-CSR for the six-month period
ended September 30, 2024, filed with the U.S. Securities and
Exchange Commission.
DoubleLine ISF is a participant in a Senior Secured First Lien Term
Loan to Skillsoft Finance II, Inc. The loan accrues interest at a
rate of 10.64% (1 Month term SOFR+ 5.25%) per annum. The loan
matures on July 14, 2028.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
SkillSoft Corporation provides cloud-based learning solutions,
offering enterprise courseware.
SLEEP COUNTRY: DBRS Finalizes BB Issuer Rating
----------------------------------------------
DBRS Limited assigned a final Issuer Rating of BB and a provisional
Senior Unsecured Notes rating of (P) BB (low) to Sleep Country
Canada Holdings Inc. (Sleep Country or the Company), both with
Stable trends. The Senior Unsecured Notes rating is based on a
recovery rating of RR5.
KEY CREDIT RATING CONSIDERATIONS
The credit ratings are supported by Sleep Country's strong market
position within the Canadian sleep specialty retail industry, solid
retail brand strength and brand portfolio, and strong free cash
flow generating capacity. The credit ratings also take into
consideration the intense competitive environment within the
industry, the Company's exposure to economic cycles, and risks
associated with acquisitions.
The provisional credit rating on the proposed $300 million Senior
Unsecured Notes (the Notes) is not a final credit rating with
respect to the above-mentioned security and may change or be
different from the final credit rating assigned or may be
discontinued. The provisional credit rating on the Notes is based
on annual reports; quarterly financial statements; management
budgets; a draft Description of Notes for the proposed Senior
Unsecured Notes; and information provided by Sleep Country to
Morningstar DBRS as of November 20, 2024. The assignment of a final
credit rating on the Notes is subject to receipt by Morningstar
DBRS of all information and final documentation that Morningstar
DBRS deems necessary to finalize the credit rating.
The Company is expected to use the proceeds from the proposed Notes
to repay outstanding senior secured indebtedness. The Notes are
expected to be subordinated to the Company's Senior Secured Credit
Facilities and structurally subordinated to any debt or other
liabilities of any non-guarantor subsidiaries. The Notes will be
guaranteed by all the Company's subsidiaries at the time of
issuance.
CREDIT RATING DRIVERS
Should Sleep Country materially improve its business-risk profile,
including increased size and scale, while deleveraging in line with
Morningstar DBRS expectations, a positive credit rating action
could occur. Furthermore, should the Company maintain earnings at
current levels and repay its senior secured obligations, such that
the recovery position of the Notes materially improves, a positive
credit rating action on the Notes could occur. Conversely, should
Sleep Country's credit metrics remain elevated for a sustained
period, and/or should the Company experience a material and
sustained deterioration in operating income and/or the recovery on
the Senior Unsecured Notes deteriorates, a negative credit rating
action could ensue.
EARNINGS OUTLOOK
Looking ahead, Morningstar DBRS anticipates Sleep Country's
earnings profile will remain appropriate for the current credit
ratings and experience modest earnings growth in 2024 and 2025.
Morningstar DBRS forecasts Sleep Country's revenue will grow in the
low-single digits to over $950 million in 2024 and toward $1
billion in 2025. Revenue growth is expected to be primarily driven
by a full year of contribution from the 2023 acquisitions of Silk
and Snow and the Canadian operations of Casper Sleep, new store
growth, and pricing actions partially attributable to product
premiumization. Morningstar DBRS expects revenue growth to be
partially offset by low-single digit same store sales declines in
2024, before experiencing some recovery in the latter half of 2025.
In terms of margins, Morningstar DBRS forecasts EBITDA margins to
improve modestly year-over-year in both 2024 and 2025 driven by a
number of factors including the centralization and internalization
of certain functions including inventory storage, improving margins
in newly launched or acquired direct-to-consumer brands, continued
price increases, as well as some shift in product mix toward higher
margin accessories. As a result, Morningstar DBRS anticipates Sleep
Country's EBITDA (as calculated by Morningstar DBRS), to improve to
approximately $200 million in 2024, and toward $210 million in
2025.
FINANCIAL OUTLOOK
Morningstar DBRS expects Sleep Country's financial profile to
strengthen over the near-to-medium term, driven by steady
deleveraging through debt repayments and modest earnings growth.
Morningstar DBRS forecasts cash flow from operations to remain
relatively flat at approximately $140 million in 2024 and 2025.
DBRS Morningstar expects capital expenditures to be in the $50
million to $55 million range annually over the forecast horizon,
with the majority of spending allocated toward store renovations
and the addition of 6-12 stores annually. Morningstar DBRS expects
the Company to stop paying dividends in the near term, following
its privatization. As such, dividends are expected to be $16
million, which is attributable to H1 2024, before discontinuing
over the forecast period. As a result, free cash flow before
changes in working capital is expected to be relatively flat at
approximately $70 million in 2024 and grow toward $85 million in
2025. Morningstar DBRS expects the Company to begin deleveraging
through mandatory debt repayments of approximately $30 million per
annum, and its excess cash flow sweep. In addition, Morningstar
DBRS anticipates the Company will have principal lease payments of
$35 million to $40 million annually in 2024 and 2025. As a result,
Morningstar DBRS anticipates Sleep Country's key credit metrics
will strengthen towards a level more appropriate for the current
rating category in 2025 and continue to strengthen over the medium
term.
Notes: All figures are in Canadian dollars unless otherwise noted.
SMITH HEALTH: U.S. Trustee Appoints Margaret Barajas as PCO
-----------------------------------------------------------
Andrew Vara, the U.S. Trustee for Regions 3 and 9, appointed
Margaret Barajas as patient care ombudsman for Smith Health Care,
Ltd.
The appointment was made pursuant to the order from the U.S.
Bankruptcy Court for the Middle District of Pennsylvania on
November 8.
Section 333 of the Bankruptcy Code provides that the Patient Care
Ombudsman shall:
* Monitor the quality of patient care provided to patients of
the debtor, to the extent necessary under the circumstances,
including interviewing patients and physicians;
* File the report with 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 as per the Order
Authorizing the United States Trustee to Appoint a Patient Care
Ombudsman pursuant to Section 333 of the Bankruptcy Code dated
November 8, 2024;
* 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; and
* Shall maintain any information obtained by such ombudsman
under Section 333 of the Bankruptcy Code that relates to patients
(including information relating to patient records) as confidential
information. The State Long-Term Care Ombudsman appointed under
Section 333(a)(2)(B) of the Bankruptcy Code shall have access to
patient records consistent with authority under the Older Americans
Act of 1965 and under non-Federal laws governing the State
Long-Term Care Ombudsman program.
About Smith Health Care, Ltd.
Smith Health Care Ltd., formerly known as Smith Nursing and
Convalescent Home of Mountain Top, Inc., provides inpatient nursing
and rehabilitative services to patients who require continuous
health care. It is based in Mountain Top, Pa.
Smith Health Care filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. M.D. Pa. Case No. 24-02892) on
November 7, 2024, with $1 million to $10 million in both assets and
liabilities. Donna Strittmatter, president of Smith Health Care,
signed the petition.
Judge Mark J. Conway handles the case.
The Debtor is represented by Robert E. Chernicoff, Esq., at
Cunningham, Chernicoff & Warshawsky, PC.
SOLANO HOME: Commences Subchapter V Bankruptcy Process
------------------------------------------------------
On December 3, 2024, Solano Home Solutions LLC filed Chapter 11
protection in the Eastern District of California. According to
court filing, the Debtor reports $1,207,009 in debt owed to 1 and
49 creditors. The petition states that funds will not be available
to unsecured creditors.
About Solano Home Solutions LLC
Solano Home Solutions LLC is a limited liability company.
Solano Home Solutions LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No.
24-25470) on December 3, 2024. In the petition filed by Caroline
Marie Hegarty, as managing member, the Debtor reports total assets
of $1,011,090 and total liabilities of $1,207,009.
Honorable Bankruptcy Judge Christopher D. Jaime handles the case.
The Debtor is represented by:
Peter G. Macaluso, Esq.
LAW OFFICE OF PETER G. MACALUSO
7230 South Land Park Drive #127
Sacramento, CA 95831
Tel: 916-392-6591
Fax: 916-392-6590
E-mail: info@pmbankruptcy.com
SOORMA TRUCKING: Unsecureds to Split $50K over 60 Months
--------------------------------------------------------
Soorma Trucking, LLC, filed with the U.S. Bankruptcy Court for the
District of Arizona a Plan of Reorganization under Subchapter V
dated November 12, 2024.
The Debtor has been in business as a trucking company in the State
of Arizona, hauling freight all over the United States since 2017.
The company was started by Saurabh Singh Bhatti and Jagjit Girn.
As a new company and with limited credit, the initial trucks bought
were used trucks, as they seemed cheaper on paper and were the only
available options at the beginning stages. At first the Debtor
ventured into dry freight, and over time moved into
temperature-controlled freight.
Creditors holding allowed claims will receive distributions based
upon Debtor's projected net disposable income over a period not to
exceed a 60-month term.
The Plan provides for nineteen classes of claims. Class 16 is not
impaired under the Plan in that the Plan does not alter the legal
or contractual rights to which the holder of such claim is entitled
and/or the Bankruptcy Code permits payment over an extended period
of time and/or the holder of the claim has agreed to a different
treatment.
Class 18 consists of General Unsecured Claims. The allowed
unsecured claims total $1,657,724. This Class will receive a
distribution of $49,672. The projected dividend is to be paid over
a period of sixty months, commencing in month thirteen of the Plan.
This dividend shall be reduced by the Court approved
administrative expense claims of the Debtor's counsel, Court
appointed accounting professional (if any) and the Chapter 11
Subchapter V Trustee to the extent that said administrative expense
claims exceed the amounts listed in this Plan.
The Debtor may pre-pay any amounts due any creditor in this Class
prior to the due dates in the Plan of Reorganization without
penalty and without prior notice or Court approval unless otherwise
provided for in the Plan of Reorganization. This Class is
impaired.
Class 19 consists of Eguity Interest Holders/ Debtor's Interest.
Equity Holder shall retain its shareholder/membership interest in
the Debtor and the Debtor shall retain all legal and equitable
interest in assets of this estate as all reconciliation issues have
been met. Post Confirmation ownership and control shall remain with
the Equity Security Holder, Saurabh Bhatti.
This is a 60-month Plan with a total projected Plan yield of
approximately $1,649,327.92. The total projected yield includes
payment of Administrative Expenses and Priority Claims. Debtor
agrees that it will make payments of not less than $1,649,327.92
over the life of the Plan which represents the Debtor's projected
disposable income for that time period as required under the Code.
A full-text copy of the Plan of Reorganization dated November 12,
2024 is available at https://urlcurt.com/u?l=bRkF63 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
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
About Soorma Trucking
Soorma Trucking, LLC, is a transportation and logistics provider in
Litchfield Park, Ariz. The company offers, among other services,
freight trucking, refrigerated freight trucking, expedited freight
trucking, expedited less than truckload, logistics, retail trade
trucking, and freeze protection.
Soorma Trucking filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06706) on Aug. 14,
2024, with $1 million to $10 million in both assets and
liabilities. Saurabh Bhatti, managing member, signed the
petition.
Judge Madeleine C. Wanslee presides over the case.
Allan D. NewDelman, Esq., at Allan D. NewDelman, P.C., is the
Debtor's legal counsel.
SOUND INPATIENT: DoubleLine ISF Marks $3.7MM Loan at 84% Off
------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $3,771,145 loan
extended to Sound Inpatient Physicians Holdings LLC to market at
$608,07 or 16% of the outstanding amount, according to a disclosure
contained in DoubleLine ISF's Amended Form N-CSR for the six-month
period ended September 30, 2024, filed with the U.S. Securities and
Exchange Commission.
DoubleLine ISF is a participant in a Senior Secured Term Loan to
Sound Inpatient Physicians Holdings LLC. The loan accrues interest
at a rate of 12.32% (3 Month term SOFR+ 6.75%) per annum. The loan
matures on June 29, 2028.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
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: Updates Unsecureds & Several Secured Claims Pay
---------------------------------------------------------------
South Broadway Realty Enterprise Inc. submitted a Third Amended
Disclosure Statement describing Third Amended Plan of
Reorganization.
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 proposed
purchasers to enter into a stalking horse agreement 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 reserves the right to elect a stalking horse bidder, but
will market the Property, for a period of not less than sixty days,
and then hold an auction sale. The Debtor will seek to retain MYC &
Associates Inc., to market and sell the Property.
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 March 31, 2025 the
payoff for: (i) the P & F Bakers Loan will be approximately
$686,050.56 (exclusive of post petition legal fees and interest
rate adjustment); and (ii) the South Broadway Loan will be
approximately $1,529,680.47.
The Debtor estimates that as of March 31, 2025, the remaining
secured creditors are owed: (i) Small Business Administration
$66,125.64; and (ii) Legends on Broadway $22,589.30. Thus, the
Debtor intends to receive $2,304,445.97 (the "Sale Proceeds") from
the stalking horse Purchaser, at the closing to satisfy the above
secured claims. The balance of the claims shall be paid by the Sale
Proceeds or the Laundromat Tenant rent. The initial bidding price
will be selected by the Debtor and its real estate broker, MYC.
Class 1 consist of the Secured Claim of Dime as to the South
Broadway Loans. The amount of claim in this Class total
$2,215,731.03. The Plan shall provide for payment of the Allowed
Secured Claim of Dime as to the South Broadway Loan in the amount
of approximately $1,529,680.47 (exclusive of post petition legal
fees and interest rate adjustment) together with the taxes paid
during the bankruptcy case. This distribution will be funded from
the Sale Proceeds. The Class 1 Claimant is unimpaired.
Class 3 consists of the Secured Claim of U.S. Small Business
Administration. The amount of claim in this Class total $66,125.64.
On December 26, 2023, the SBA filed Claim Number 1 on the Court's
Claims Register in the amount of $63,348.08. The Debtor was a
guarantor under the SBA's loan to P & F. The Debtor’s Plan will
pay 100% of the SBA Claim in the amount of $66,125.64. The Class 3
Claimant is impaired.
Class 4 of the Plan consists of The Legends On Broadway Partner's
judgments each in the amounts of $5,015.36 and $14,725.22. Class 4
Claimants shall receive a one hundred percent distribution from the
Debtor with statutory interest and will be paid in in full. This
distribution will be funded from a combination of the sale
proceeds, 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. The Class 4 Claimant is not impaired.
Class 5 consists of General Unsecured Claims. The allowed unsecured
claims total $500.00. In full satisfaction, settlement, release and
discharge of such Claims, Class 5 Claimants shall receive a one
hundred percent 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.
Class 6 Claimants shall not retain their existing pre-petition
Equity Interests in the Debtor, effective as of the Effective Date.
Class 6 Claimants are unimpaired.
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 one hundred percent
of the remaining claims including, but not limited to: (i) the
Legends on the Broadway Partners judgments; and (ii) the General
Unsecured creditors; and (iii) administrative 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.
A full-text copy of the Third Amended Disclosure Statement dated
November 13, 2024 is available at https://urlcurt.com/u?l=XN3CyB
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
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.
SPECTRUM GROUP: Silver Point Marks $19.2MM Loan at 46% Off
----------------------------------------------------------
Silver Point Specialty Lending Fund has marked its $19,277,434 loan
extended to Spectrum Group Buyer Inc (Pixelle) to market at
$15,241,221 or 79% of the outstanding amount, according to a
disclosure contained in Silver Point's Amended Form 10-Q for the
quarterly period ended September 30, 2024 filed with the Securities
and Exchange Commission.
Silver Point is a participant in a First Lien Term Loan to Spectrum
Group Buyer Inc (Pixelle). The loan accrues interest at a rate of
11.75% (S+6.50%, .75% Floor) per annum. The loan is scheduled to
mature on May 19, 2028.
Silver Point Specialty Lending Fund is an externally managed
closed-end management investment company that has elected to be
regulated as a business development company under the Investment
Company Act of 1940, as amended and was originally formed on July
31, 2014. Effective November 15, 2021, Silver Point changed its
name to Silver Point Specialty Lending Fund and converted to a
statutory trust organized under the laws of the State of Maryland.
Silver Point is an emerging growth company under the Jumpstart Our
Business Startups Act of 2012. For so long as Silver Point remains
an emerging growth company under the JOBS Act, it will be subject
to reduced public company reporting requirements.
Silver Point is led by Edward Mulé, Chief Executive Officer; and
Jesse Dorigo, Chief Financial Officer. The Fund can be reached
through:
Edward Mule
Silver Point Specialty Lending Fund
Maryland, Two Greenwich Plaza, Suite 1
Greenwich, CT, 06830
Tel: (203) 542-4200
Spectrum Group Buyer, Inc. is operating through Pixelle Specialty
Solutions LLC, a manufacturer of specialty papers for diverse end
markets. The company is owned by funds affiliated with H.I.G.
Capital.
SPELL IT WITH COLOR: Gets OK to Use Cash Collateral Until Jan. 20
-----------------------------------------------------------------
Spell It With Color, Inc. received interim approval from the U.S.
Bankruptcy Court for the Northern District of Illinois, Eastern
Division to use cash collateral until Jan. 20 next year.
The interim order signed by Judge Deborah Thorne authorized the
company to use the cash collateral of Alliance Franchise Brands,
LLC to pay operating expenses of $40,257.98 pursuant to the
company's projected budget. The approval is effective from June 25,
2024 through Jan. 20, 2025.
Spell It With Color was ordered pay to Alliance Franchise Brands
the amount of current royalties, plus $500 as adequate protection
for both October and November.
In addition, Alliance Franchise Brand was granted a lien on the
proceeds of the cash collateral subsequent to the filing of the
Chapter 11 petition, subject to the extent and validity of the
lien.
The next hearing is set for Jan. 15.
About Spell It With Color Inc.
Spell It With Color, Inc., doing business as Allegra Printing and
Imaging, sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ill. Case No. 24-09305) on June 25, 2024, with $1
million to $10 million in assets and $500,000 to $1 million in
liabilities. Thomas Wilhelm, president, signed the petition.
Judge Deborah L. Thorne presides over the case.
Penelope Bach, Esq., at Bach Law Offices represents the Debtor as
bankruptcy counsel.
SPICEY PARTNERS: Gets Interim OK for DIP Loan From Zimmer Inc.
--------------------------------------------------------------
Spicey Partners Real Estate Holdings, LLC and Cosmed Group, Inc.
received interim approval from the U.S. Bankruptcy Court for the
Southern District of Texas, Houston Division, to obtain a loan from
Zimmer, Inc. to get through bankruptcy.
The interim order signed by Judge Christopher Lopez approved the
companies' $7.5 million debtor-in-possession (DIP) loan, of which
$2 million will be made immediately available to the companies
while the remaining $5.5 million will be made available upon entry
of a final order.
As adequate protection, Zimmer will be granted (i) a valid,
binding, continuing, enforceable, non-avoidable, fully and
automatically perfected first-priority liens on and security
interests in all DIP collateral that is not
subject to any liens or encumbrances immediately prior to the
petition date, subject only to the carveout; and (ii) a valid,
binding, continuing, enforceable, fully perfected first priority,
priming liens on and security interests in all other DIP collateral
pursuant to Section 363(c)(3) and 364(d)(1) of the Bankruptcy
Code.
The DIP facility is due and payable on the earliest to occur of:
i. Six months after entry of the interim order;
ii. The effective date of a plan of reorganization or
liquidation for the companies confirmed in the Chapter 11 cases;
iii. The date of termination of the commitments under the DIP
facility and/or acceleration of any outstanding borrowings under
the DIP facility, in each case, by the DIP lender following the
occurrence of an event of default and upon the delivery of a
termination notice, in each case, subject to the companies' right
to use the proceeds of the DIP loans during the period, and pending
the outcome of the stay relief hearing;
iv. The first business day on which the interim order expires
by its terms or is terminated, unless the final order has been
entered and become effective prior thereto;
v. The conversion of any of the Chapter 11 cases to a case
under Chapter 7 of the Bankruptcy Code unless otherwise consented
to in writing (which may be e-mail) by the DIP lender;
vi. The dismissal of any of the Chapter 11 cases, unless
otherwise consented to in writing by the DIP lender; or
vii. The repayment in full in cash of all obligations and
termination of all commitments under the DIP facility.
The DIP loans will accrue interest at 8%, with a default interest
rate of an additional 2%, each of which will be payable monthly in
kind and added to the principal balance of the DIP facility.
The companies are required to comply with these milestones:
i. The companies must have sought the retention of an
investment banker reasonably acceptable to the DIP lender by the
date that is no later than 10 days following the filing of the DIP
motion.
ii. The bankruptcy court must have entered the final order by
the date that is no later than 30 days after the filing of the DIP
motion.
iii. The companies must file, by the date that is no later than
45 days after the petition date, a motion to sell all or
substantially all of the companies' assets through a sale.
iv. The bankruptcy court must have entered an order approving
the bidding procedures of the sale contemplated by the sale motion
by the date that is no later than 65 days after the petition date.
v. The bankruptcy court must have entered an order approving
the sale by the date that is no later than 110 days after the
petition date.
vi. The sale must be consummated by the date that is no later
than 120 days after the petition date.
vii. A liquidating Chapter 11 plan must be consummated by the
date that is no later than 90 days after consummation of the sale.
Spicey and Cosmed Group are party to pre-bankruptcy secured
financing arrangements with each of Washington Trust Company,
Michael L. Howe, and Cosmed Group of the Dominican Republic, Inc.
As of the petition date, the companies had approximately $6.73
million of secured debt outstanding.
The final hearing is set for Jan. 7, Objections are due by Jan. 3.
About Spicey Partners Real Estate Holdings
Spicey Partners Real Estate Holdings, LLC filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Tex. Case No. Case No. 24-90572) on Nov. 15, 2024, listing
$10
million to $50 million in assets and $100 million to $500 million
in liabilities. The petitions were signed by David G. Howe as chief
operating officer.
Judge Christopher M Lopez presides over the case.
David Robert Eastlake, Esq. at Greenberg Traurig, LLP represents
the Debtor as counsel.
SPIRIT AIRLINES: Egan-Jones Cuts Senior Unsecured Ratings to D
--------------------------------------------------------------
Egan-Jones Ratings Company on November 19, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Spirit Airlines, Inc. to D from CCC. EJR also
withdrew the rating on commercial paper issued by the Company.
Headquartered in Florida, Spirit Airlines, Inc. owns and operates
airlines.
SPIRIT AIRLINES: US Trustee Seeks to Delay Chapter 11 Proceedings
-----------------------------------------------------------------
Emily Lever of Law360 reports that the U.S. Trustee's Office has
opposed the proposed timeline for Spirit Airlines' Chapter 11 case,
asserting that the bankruptcy's size and complexity make a rushed
combined confirmation and disclosure statement hearing in February
2025 inappropriate.
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.
SPLASH BEVERAGE: Files Prospectus for Sale of 82.9MM Shares
-----------------------------------------------------------
Splash Beverage Group, Inc., filed a Form S-1 with the U.S.
Securities and Exchange Commission as part of the registration
statement relating to the sale or other disposition from time to
time by the Company of up to 82,912,163 shares of common stock, par
value $0.001 per share consisting of: (i) up to 68,164,790 shares
of Common Stock which may be issued upon the conversion of
convertible promissory notes, (ii) up to 13,634,873 shares of
Common Stock which may be issued upon the exercise of outstanding
warrants; and (iii) 1,112,500 shares of Common Stock already issued
or issuable to the selling stockholders as incentive shares.
The Company's common stock is currently traded on the NYSE American
under the symbol "SBEV." Warrants to purchase shares of the
Company's Common Stock are traded on the NYSE American under the
Symbol "SBEV WT".
On December 5, 2024, the last reported sales price for the
Company's common stock was $0.1880 per share.
A full-text copy of the Form S-1 is available at
https://urlcurt.com/u?l=nIQe2e
About Splash Beverage Group
Fort Lauderdale, Florida-based Splash Beverage Group, Inc. is a
portfolio company specializing in managing multiple brands across
various growth segments within the consumer beverage industry. The
Company focuses on incubating and acquiring brands with the aim of
accelerating them to higher volumes and increased sales revenue.
Rose, Snyder & Jacobs, based in Encino, California, and the
Company's auditor since 2023, issued a "going concern"
qualification in its report dated March 29, 2024. The
qualification
highlighted that the Company has experienced recurring losses from
operations, an accumulated deficit, and a working capital
deficiency, which raise substantial doubt about its ability to
continue as a going concern.
Splash Beverage Group incurred a net loss of $21 million for the
year ended December 31, 2023. As of June 30, 2024, Splash Beverage
Group had $8,057,812 in total assets, $18,411,650 in total
liabilities, and $10,353,838 in total stockholders' deficit.
SRM-DOUBLE: To Sell Heyburn Property to Barclay Limited for $2.1MM
------------------------------------------------------------------
SRM-Double L, LLC, seeks approval from the U.S. Bankruptcy Court
for the District of Idaho to sell its business property and assets
in an auction, free and clear of liens, claims, encumbrances, and
interests.
The Debtor's Property is located at 307 S. Warm Springs Way,
Heyburn, ID 83336.
The Debtor is engaged in the business of manufacturing and selling
farming and agricultural handling equipment and related products.
The Debtor enters a purchase agreement with Barclay Limited Family
Partnership, an Idaho limited Partnership, as the purchaser and the
Stalking Horse Bidder.
The Debtor contacted numerous parties who had previously expressed
interest in the Property, listed the assets on on Bizbuysale.com, a
CoStar Group-affiliated listing website to sell business assets,
listed its assets on Openfair.co, a premier business sale website,
continued to list its assets for sale on Inforuptcy.com, a
nationwide online resource for investors seeking to purchase assets
from bankruptcy estates, trustees, and receivers.
Despite efforts, the Debtor did not receive an offer for its assets
higher or better than the Stalking Horse Bid, and requests the
Court to approve the Stalking Horse Bid as the successful bid and
approve the sale.
The Debtor's assets are encumbered by Brent and Chalet Funk,
however, has consented to the sale "free and clear" of its
interests to the Purchaser with the understanding that Funk’s
lien will attach to the net proceeds of the sale.
The Sale to the Stalking Horse Bidder will yield cash proceeds of
$2,179,000 and it will benefit the estate by the assumption of
certain liabilities to contract counterparties.
The Debtor believes that the Proposed Sale will maximize the value
of the Debtor's assets, preserve going-concern value, and maximize
stakeholder returns.
The Proposed Sale does not allow or disallow any claims, dictate
the relative priority of claims, subordinate any claim, dictate the
distribution of the proceeds among any of the Debtor's prepetition
creditors or other stakeholders, does not adjudicate the validity,
extent, or priority of any lien, and does not set any
pre-determined outcome with respect to the rights of the Debtor's
stakeholders.
About SRM-Double L, LLC
SRM-Double L is a farm equipment manufacturer that specializes in
potato equipment.
SRM-Double L, LLC in Heyburn ID 83336, sought relief under Chapter
11 of the Bankruptcy Code filed its voluntary petition for Chapter
11 protection (Bankr. D. Idaho Case No. 24-40671) on Nov. 14, 2024,
listing $13,849,586 in assets and $22,804,289 in liabilities. John
Stokes as member.
PARSONS BEHLE & LATIMER serve as the Debtor's legal counsel.
STAR PUMP: Files Chapter 11 Bankruptcy Protection
-------------------------------------------------
On November 29, 2024, Star Pump Down Service LLC filed Chapter 11
protection in the Western District of Texas. According to court
documents, the Debtor reports $7,061,694 in debt owed to 1 and 49
creditors. The petition states funds will not be available to
unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on January 7,
2025 at 10:00 AM via Via Phone: (866)711-2282; Code: 3544189#.
About Star Pump Down Service LLC
Star Pump Down Service LLC is dedicated to providing services in
the pump down industry.
Star Pump Down Service LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-11506) on
November 29, 2024. In the petition signed by Chad Elliott, as
president, the Debtor reports total assets: of $5,146,614 and total
liabilities of $7,061,694.
Honorable Bankruptcy Judge Shad Robinson handles the case.
The Debtor is represented by:
Stephen W Sather, Esq.
BARRON & NEWBURGER, P.C.
7320 N. MoPac Expressway 400
Austin, TX 78731
Tel: (512) 649-3243
E-mail: ssather@bn-lawyers.com
STELLA SIOMKOS: Court Denies Motion to Recuse
---------------------------------------------
Judge Lisa G. Beckerman of the United States Bankruptcy Court for
the Southern District of New York denied the motion to recuse filed
by Stella Siomkos.
Debtor Stella Siomkos submitted an email with an attachment to
Chambers on November 18, 2024.
The email as a motion requesting that Judge Beckerman recuse
herself from the case on the grounds of bias. The issue of bias
also was raised in motion for a stay pending appeal, which motion
the Court denied.
The Court held three hearings on Trinity Life Insurance Company's
motion to convert or dismiss the Debtor's Chapter 11 case. The
first hearing was held on August 7, 2024.
Judge Beckerman did not grant the Motion to Convert or Dismiss at
the August 7, 2024 hearing even though the movant presented
evidence that cause for granting the motion existed under section
1112(b) of the Bankruptcy Code.
According to Judge Beckerman she has no personal animus towards the
Debtor or bias against the Debtor. While the Debtor has had a
difficult past few years, including ill health, she ordered the
Debtor's Chapter 11 case to be converted to a Chapter 7 case for
cause under section 1112(b) of the Bankruptcy Code because the
Debtor's monthly operating reports filed prior to the October 23
hearing reflected that the Debtor had no income and that her
husband was providing financial support, the Debtor failed to pay
any real estate taxes, condominium fees and/or interest
post-petition, and the Debtor failed to comply with the order of
the Court.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=h4RAoM
Stella Siomkos filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 24-10619) on April 11, 2024, listing under $1
million in both assets and liabilities. The Debtor is represented
by Karamvir Dahiya, Esq.
STEWARD HEALTH: No Patient Care Concern, 3rd PCO Report Says
------------------------------------------------------------
Suzanne Koenig, the patient care ombudsman, filed with the U.S.
Bankruptcy Court for the Southern District of Texas her third
report regarding the quality of patient care provided at the
Massachusetts, Ohio, Pennsylvania and Miami-Dade, Florida
facilities operated by Steward Health Care System, LLC and
affiliates.
Carney and Nashoba ceased all operations on August 31, 2024. From
the Ombudsman's perspective, the Debtors and the staff "on the
ground" at Carney and Nashoba maintained patient care and safety
throughout the closure process.
With the approval of the various sale transactions, all of which
have closed, SRMC is now the only Hospital under the purview of
this Ombudsman that continues to be operated by the Debtors.
During this Report Period, the Ombudsman focused on monitoring care
and the transition of care as (a) the sales of all remaining
Hospitals (except SRMC) closed and the new operators took over, and
(b) the ongoing care provided by the Debtors at SRMC as well as the
ongoing sale efforts relating to SRMC.
The Ombudsman did not observe any material issues impacting patient
care requiring this Court's immediate attention, while the
individual Hospital Reports will provide a detailed analysis of
each Hospital and patient care at the Hospitals. The Ombudsman did
not observe any issues impacting patient care as the sale
transactions closed.
Summary of the Ombudsman's overall impressions of care at the
Hospitals and areas in which improvement can and has been made
during the report period:
* The Debtors worked diligently to ensure a smooth closure of
Nashoba and Carney. Nashoba and Carney ceased operations on August
31, 2024. The Ombudsman visited Carney during this Report Period to
ensure that post-closure processes were in furtherance of patient
care and safety. Carney’s marquee was covered, and signage was
posted in several languages stating that Carney was permanently
closed. Security must be notified to gain entrance into Carney, and
cameras were functional and being monitored continuously.
* Overall, the preparation for and transitions to new
management and ultimately new ownership have been smooth with
patient care and safety always at the forefront. A significant
number of repairs were completed and new or repaired equipment was
acquired in advance of or immediately following the transition to
new management and prior to the closing of sales.
* During this Report Period, the Ombudsman focused on ensuring
that patients will continue to have access to records after the
sales have closed or the Hospitals have closed (in the case of
Nashoba and Carney). Since the closure of Nashoba, the Debtors have
not identified a long-term solution for storing and access to
medical records for former Nashoba patients. It is the Ombudsman's
understanding that there is a short-term solution in place, but the
Debtors are still working on options for a long term solution.
* The Ombudsman did not observe any staffing issues that made
her believe patients were in immediate danger or otherwise
receiving unsafe care due to staffing issues. The Debtors' staff
demonstrated a strong commitment to quality care during these cases
and the sale process. The Ombudsman did not observe any issues with
staffing levels through this Report Period.
* The Ombudsman did not find any concerns related to
procurement of adequate supplies, such as food and medical
supplies, among other necessary items. Based on the Ombudsman's or
her representative's observations during each of the visits, the
supply rooms were stocked with enough supplies to provide safe
patient care.
* The Ombudsman observed marked improvement since the Petition
Date for the Hospitals requiring repairs and new or repaired
equipment. A significant number of repairs were made or in the
process of being made as new ownership prepared to take over
operation of the Hospitals. In addition to the assistance provided
by new ownership, the communities have provided substantial support
to certain Hospitals.
* The kitchens across the Hospitals continued to be clean and
organized during the Report Period. The kitchens that were
previously messy and chaotic during the first report period had
greatly improved their work processes, showing good flow with the
meal prep line, labeling food with expiration dates, and taking
food temperatures and documenting them in accordance with the
Hospital's policy. Overall, meal prep and service greatly improved
during these cases.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=stnyl0 from Kroll, claims agent.
About Steward Health Care
Steward Health Care System, LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024. Judge
Christopher M. Lopez oversees the proceeding.
The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy
counsel; McDermott Will & Emery as special corporate and regulatory
counsel; AlixPartners, LLP as financial advisor and John Castellano
of AlixPartners as chief restructuring officer. Lazard Freres & Co.
LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc., provide investment banking services to the
Debtors. Kroll is the claims agent.
Suzanne Koenig is the court-appointed patient care ombudsman for
the Debtors' hospitals and facilities in Massachusetts, Ohio,
Pennsylvania and Miami-Dade Florida.
STEWARD HEALTH: Susan Goodman Submits Third PCO Report
------------------------------------------------------
Susan Goodman, the patient care ombudsman, filed with the U.S.
Bankruptcy Court for the Southern District of Texas her
consolidated third interim report regarding the quality of patient
care provided by Steward Health Care System, LLC and affiliates.
The PCO noted that record continuity for former Steward patients
remains her top concern. Arizona, Space Coast, West Texas, and
Texarkana purchased locations all reported record migration plans
to their existing system-wide electronic health records ("EHRs").
However, the Arkansas and HAS-affiliated locations did not have an
existing EHR infrastructure to migrate to.
At report filing, the PCO's understanding is that the
HSA-affiliated locations were planning an interim transition to
segment their hospitals out of Debtors' system-wide EHR database.
The PCO would expect that Steward would provide accurate and
updated medical record request contact information on their website
and respond to all former patient record forward requests
consistent with state and federal regulations to ensure timely
information availability for patient care transitions.
The PCO received one direct patient concern regarding an inability
to locate a record request pathway for a clinician who departed
Debtors employment prior to sale. The PCO was able to reach a
corporate health information management contact who provided a
number for the patient to call to work through his/her record
request. The patient reported frustration with the process (length
of time on hold) yet also reported ultimate success in submitting
his/her request to forward previous records for care continuity.
In addition, the PCO received a second patient inquiry regarding an
outstanding overpayment refund. The PCO promptly reached out to the
Debtors' team. In working through the concern, it appears the
refund is being processed. The PCO reserves the right to supplement
this report, if needed, should this important patient issue
ultimately remain outstanding, or others arise.
The PCO cited that she introduced herself to at least one
representative of each buyer for a transition discussion and to
provide her contact information to these individuals. The PCO has
not received questions/concerns from buyer representatives and has
also noted a natural reduction in calls from local operational team
members as they reported their earnest engagement in a multitude of
tasks to fully transition their operations away from Debtors.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=27Qwwe from Kroll, claims agent.
The ombudsman may be reached at:
Susan N. Goodman
PIVOT HEALTH LAW, LLC
P.O. Box 69734 |Oro Valley, AZ 85737
Ph: 520.744.7061 (message)
Email: sgoodman@pivothealthaz.com
About Steward Health Care
Steward Health Care System, LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024. Judge
Christopher M. Lopez oversees the cases.
The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy
counsel; McDermott Will & Emery as special corporate and regulatory
counsel; AlixPartners, LLP as financial advisor and John Castellano
of AlixPartners as chief restructuring officer. Lazard Freres & Co.
LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc., provide investment banking services to the
Debtors. Kroll is the claims agent.
Susan N. Goodman is the patient care ombudsman appointed in the
Debtors' cases.
STRIVE CONCRETE: Gets Final Approval to Use Cash Collateral
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas,
Sherman Division issued a final order approving Strive Concrete
Solutions LLC's motion to use cash collateral.
The final order signed by Judge Brenda Rhoades authorized Strive
Concrete Solutions to use cash collateral in accordance with its
budget. The company may exceed any line item in the budget by up to
10%.
As adequate protection, secured lenders were granted replacement
liens on the company's equipment, inventory, and accounts with the
same validity and priority as their pre-bankruptcy liens.
The order does not affect the rights of any party to challenge the
priority or enforceability of the lenders' pre-bankruptcy liens.
About Strive Concrete Solutions LLC
Strive Concrete Solutions, LLC filed a Chapter 11 bankruptcy
petition (Bankr. E.D. Texas Case No. 24-41926) on Aug. 19, 2024,
with up to $50,000 in assets and up to $500,000 in liabilities.
Judge Brenda T. Rhoades oversees the case.
The Debtor tapped Herrin Law, PLLC as bankruptcy counsel.
SUMMIT HOTEL: Egan-Jones Retains BB Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on November 21, 2024, maintained its
'BB' foreign currency and local currency senior unsecured ratings
on debt issued by Summit Hotel Properties, Inc. EJR also withdrew
the rating on commercial paper issued by the Company.
Headquartered in Austin, Texas, Summit Hotel Properties, Inc.
operates as a real estate investment trust.
SUNPOWER CORP: Egan-Jones Withdraws BB Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on November 26, 2024, withdrew its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by SunPower Corporation. EJR also withdrew the rating
on commercial paper issued by the Company.
Headquartered in San Jose, California, SunPower Corporation is an
integrated solar products and services company.
TC ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on November 27, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by TC Energy Corporation.
Headquartered in Calgary, Canada, TC Energy Corporation operates as
an energy infrastructure company.
TECTUM ROOFING: Gets OK to Use Cash Collateral Until Feb. 19
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado granted
Tectum Roofing, LLC interim authorization to use the cash
collateral of its secured creditors until Feb. 19 next year.
The company will only use cash collateral in accordance with its
projected budget, subject to a deviation on a line-item expense not
to exceed 15% without the prior consent of Stockmen's Bank or an
order of the court.
Secured creditors including Stockmen's Bank and Corporation Service
Company will be granted a post-petition lien on all post-petition
assets and income derived from the operation of Tectum's business.
In addition, Stockmen's Bank is entitled to a superpriority
administrative claim for any diminution in value of its
collateral.
The next hearing is scheduled for Feb. 19.
About Tectum Roofing
Tectum Roofing, LLC specializes in roofing services, focusing on
projects that require durable, high-quality solutions. Known for
their expertise in both commercial and residential roofing, the
company handles installations, repairs, and maintenance.
Tectum Roofing sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 24-16169) with $1 million
to $10 million in both assets and liabilities. Mark Dennis, a
certified public accountant at SL Biggs, serves as Subchapter V
trustee
Judge Michael E Romero oversees the case.
Jeffrey S. Brinen, Esq., at Kutner Brinen Dickey Riley, P.C. is the
Debtor's legal counsel.
TEMADA INC: Gets Interim OK to Use Cash Collateral Until Jan. 9
----------------------------------------------------------------
Temada, Inc. received interim approval from the U.S. Bankruptcy
Court for the Southern District of Florida, Miami Division, to use
its lender's cash collateral until Jan. 9 next year.
The company requires the use of cash collateral to pay operating
expenses including payroll.
National Coatings Supply asserts an interest in the cash
collateral. As adequate protection, the lender was granted a
post-petition lien on the cash collateral to the same extent and
with the same validity and priority as its pre-bankruptcy lien.
The next heariug is set for Jan. 9.
About Temada Inc.
Temada Inc., doing business as Rembrant Auto Body, was founded in
2004. The company's line of business includes the retail sale of
computers, computer peripheral equipment, and software.
Temada Inc. sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-22472) on
November 26, 2024. In the petition filed by Damian Tejera, as
president, the Debtor reports estimated assets up to $50,000 and
estimated liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Corali Lopez-Castro handles the case.
The Debtor is represented by David W. Langley, Esq.
TEXACO INC: Spars With State Officials Over 1988 Chapter 11 Plan
----------------------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that Texaco Inc.
and Louisiana state and local officials argued before a New York
bankruptcy judge on December 12, 2024, over whether the company's
decades-old Chapter 11 plan shields it from lawsuits alleging its
drilling operations violated state law.
About Texaco Inc.
Texaco Inc. provides oil services. The Company explore, produce,
transport, refine, and market crude oil, natural gas liquids,
natural gas, and petroleum.[BN]
Texaco, Inc., and two of its wholly owned subsidiaries, Texaco
Capital Inc., and Texaco Capital N.V., sought Chapter 11 protection
(Bankr. S.D.N.Y. Case Nos. 87-B-20142 through 87-B- 20144) on Apr.
12, 1987, represented by the law firm of Weil, Gotshal & Manges,
LLP. Lawyers at Kramer, Levin, Nessen, Kamin & Frankel,
represented the General Creditors' Committee, and lawyers at
Cleary, Gottlieb, Steen & Hamilton, represented the Industry
Creditors' Committee. These two unsecured creditors' committees
were merged at the Debtor's behest by order of the Honorable Howard
Schwartzberg, 79 B.R. 560, on Nov. 12, 1987. Lawyers at Keck, Mahin
& Cate represented the Equity Committee. Lawyers at Levin &
Weintraub & Crames in New York, Stutman, Triester & Glass, P.C., in
Los Angeles, and Baker & Botts in Houston, Tex., represented
Penzoil Company, Texaco's largest creditor.
TIJUANA FLATS: Restaurants LLC Unsecured Claims to Split $200K
--------------------------------------------------------------
Tijuana Flats Restaurants, LLC, and Tijuana Flats #176, LLC
submitted a Joint Disclosure Statement describing Joint Plan of
Reorganization dated November 14, 2024.
Tijuana Flats Restaurants, LLC ("Restaurants") owns and operates 65
"Tijuana Flats" restaurants located across Florida. Its restaurants
provide fast, casual dining featuring a "Tex-Mex" cuisine.
Previously, each of the company owned restaurants operated as a
separate limited liability company, all owned by Restaurants, with
Restaurants utilizing a consolidated Cash Management System for
each of its subsidiaries. Between February and April of 2024, 24 of
the operating subsidiaries were closed. On April 15, 2024, all but
one of the remaining subsidiaries were "rolled up" and merged into
Restaurants.
As is their duty, the Debtors have proposed the Plan as a means for
dealing with their debt burden and, which Plan is intended to
ensure that all creditors receive as much or more than they would
receive in a liquidation of Debtors' assets. In broadest terms, the
Plan contemplates an equity contribution of $205,000 from
Flatheads, LLC which will be used to cover Administrative Claims
and make a one-time, lump-sum distribution to General Unsecured
Creditors. The secured indebtedness owed to LCS2022 will be reduced
and paid in accordance with the payment schedule.
Class 2 consists of General Unsecured Claims against Restaurants,
LLC. Except to the extent an Allowed General Unsecured Claim
against Restaurants, LLC agrees to a less favorable treatment,
Class 2 General Unsecured Creditors shall share pro-rata in a lump
sum distribution of $200,000, payable on the Initial Distribution
Date. Class 2 is impaired.
Class 3 consists of General Unsecured Claims against Tijuana Flats
#176, LLC. Except to the extent an Allowed General Unsecured Claim
against Tijuana Flats #176, LLC agrees to a less favorable
treatment, Class 3 General Unsecured Creditors shall share pro rata
a lump sum distribution of $5,000 from Tijuana Flats #176, LLC on
the Initial Distribution Date. Class 3 is impaired.
Class 4 consists of Equity Interests in the Debtors. Flatheads, LLC
shall retain its equity interest in Restaurants, LLC in exchange
for (i) a capital contribution of $205,000 to fund the
distributions to Classes 2 and 3, and (ii) a reclassification of
its $1,200,000 administrative expense claim as a capital
contribution. Class 4 is unimpaired under this Plan and is
therefore conclusively presumed to have accepted this Plan pursuant
to Section 1126(f) of the Bankruptcy Code.
The Plan will be implemented and funded from the Equity
Contribution, funds accumulated during the pendency of this Chapter
11 case, continued operations, the exit loan facility and from
recoveries on Avoidance Actions.
LCS2022 shall also provide an exit loan facility in the amount of
$1,000,000 to Debtors. Advances under the post-confirmation credit
facility shall bear interest at the Wall Street Journal Prime Rate
determined as of the Confirmation Date, be secured by a blanket
lien on all assets owned by the Debtors on a pari-passu basis with
LCS2022's Allowed Secured Claim, and shall be evidenced by such
with promissory notes, security agreements and other statutory
instruments as LCS2022 may reasonably require. The amount of the
exit loan facility may be increased at LCS2022's option without the
necessity of further approval of the Bankruptcy Court.
A full-text copy of the Joint Disclosure Statement dated November
14, 2024 is available at https://urlcurt.com/u?l=VhSDej from
PacerMonitor.com at no charge.
Attorneys for the Debtors:
Richard R. Thames, Esq.
THAMES | MARKEY
50 North Laura Street, Suite 1600
Jacksonville, FL 32202
Tel: 904-358-4000
E-mail: rrt@thamesmarkey.law
About Tijuana Flats Restaurants
Tijuana Flats Restaurants, LLC, is a fast-casual Tex-Mex restaurant
founded in 1995 in Winter Park, Fla. The Company has 63
company-owned locations throughout Florida.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01128) on April 19,
2024. In the petition signed by CEO Joseph D. Christina, the
Debtor disclosed up to $10 million in assets and up to $50 million
in liabilities.
Judge Jason A. Burgess oversees the case.
Richard R. Thames, Esq., at THAMES | MARKEY, represents the Debtor
as legal counsel.
TRI-CITY SERVICE: George Oliver Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Bankruptcy Administrator for the Eastern District of North
Carolina appointed George Mason Oliver as Subchapter V trustee for
Tri-City Service LLC.
About Tri-City Service LLC
Tri-City Service LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No.
24-04063) on Nov. 21, 2024, listing up to $50,000 in assets and $1
million to $10 million in liabilities. The petition was signed by
Yehia Hussein as manager.
Judge Pamela W Mcafee presides over the case.
Jason L. Hendren, Esq. at Hendren Redwine & Malone, PLLC represents
the Debtor as counsel.
TROPHY CUPCAKES: Files Chapter 11 Bankruptcyin W.D. Washington
--------------------------------------------------------------
On December 3, 2024, Trophy Cupcakes LLC filed Chapter 11
protection in the Western District of Washington. According to
court filing, the Debtor reports $2,763,347 in debt owed to 1 and
49 creditors. The petition states that funds will be available to
unsecured creditors.
About Trophy Cupcakes LLC
Trophy Cupcakes LLC is a cupcake bakery with four festive locations
in Washington -- throughout Seattle and in downtown Bellevue.
Trophy Cupcakes LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-13083) on December
3, 2024. In the petition filed by Jennifer Shea, as member, the
Debtor reports total assets of $277,411 and total liabilities of
$2,763,347.
Honorable Bankruptcy Judge Christopher M. Alston handles the case.
The Debtor is represented by:
Faye C. Rasch, Esq.
WENOKUR RIORDAN PLLC
600 Stewart St.
Suite 1300
Seattle, WA 98101
Tel: 206-903-0401
E-mail: allie@wrlawgroup.com
ULTRA SAFE: Sued by Bidder Over Violations of Stalking-Horse Deal
-----------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that the
stalking-horse bidder for the assets of bankrupt nuclear energy
developer Ultra Safe Nuclear Corp. has filed a lawsuit against the
company, claiming that Ultra Safe violated its purchase agreement
and seeking to halt the bidding process.
About Ultra Safe Nuclear Corporation
Ultra Safe Nuclear Corp. -- https://www.usnc.com/ -- is a
privately-owned provider of nuclear fuel and reactor components.
Ultra Safe Nuclear and its affiliates filed Chapter 11 petitions
(Bankr. D. Del. Lead Case No. 24-12443) on October 29, 2024, with
$10 million to $50 million in assets and $50 million to $100
million in liabilities. Kurt A. Terrani, the interim chief
executive officer, signed the petition.
The Debtors are represented by Elizabeth Soper Justison, Esq., at
Young Conaway Stargatt & Taylor, LLP.
UNDERGROUND SOLUTIONS: Gets OK to Use Cash Collateral Until May 31
------------------------------------------------------------------
Underground Solutions, LLC received final approval from the U.S.
Bankruptcy Court for the Central District of California, Northern
Division, to use the cash collateral of its secured creditors.
The final order signed by Judge Ronald Clifford, III approved the
use of cash collateral for the period from Nov. 24, 2024, to May
31, 2025, in accordance with the company's budget.
Underground Solutions can deviate from the amounts stated in the
budget without notification to secured creditors by as much as 20%
in any one category where the projected spending for the week is
under $2,000 and by as much as 15% as to any other category.
The final order directed the company to perform under the terms of
its stipulations with Caterpillar Financial Services Corporation
and John Deere Construction & Forestry Company, including making
adequate protection payments to both creditors.
Underground Solutions was also directed to make a monthly payment
of $731 to the U.S. Small Business Administration as adequate
protection.
The next hearing is scheduled for May 20, 2025.
A copy of the order is available at https://shorturl.at/7pZ5U from
PacerMonitor.com.
About Underground Solutions LLC
Underground Solutions LLC specializes in providing cutting-edge
underground communication services. The Company specializes in
delivering top-tier fiber optic services that enhance connectivity
experience.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-10578) on May 23,
2024. In the petition signed by Javier Junior Esqueda, managing
member, the Debtor disclosed up to $10 million in assets and up to
$1 million in liabilities.
Judge Ronald A. Clifford III oversees the case.
Steven R. Fox, Esq., at the Fox Law Corporation, Inc., represents
the Debtor as legal counsel.
UPBOUND GROUP: Egan-Jones Withdraws B Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on November 18, 2024, withdrew its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Upbound Group, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Plano, Texas, Upbound Group, Inc. operates
lease-to-own stores.
UWM HOLDINGS: Fitch Gives 'BB-' Final Rating on $800MM Unsec Notes
------------------------------------------------------------------
Fitch Ratings has assigned a final rating of 'BB-' to the $800
million of 6.625% unsecured notes maturing in 2030 issued by UWM
Holdings, LLC (BB-/Positive), a wholly owned debt issuing
subsidiary of UWM Holdings Corporation (BB-/Positive).
The notes benefit from an upstream corporate guarantee from United
Wholesale Mortgage, LLC (UWM; BB-/Positive), the wholly owned,
primary operating company. Proceeds from the issuance are expected
to be used to repay a portion of the amounts outstanding under the
company's mortgage servicing rights (MSR) facilities.
The assignment of the final ratings follows receipt of documents
conforming to information already received. The final rating is the
same as the expected rating assigned to the unsecured notes on Dec.
5, 2024.
Key Rating Drivers
The ratings are supported by UWM's market position and franchise as
the leading wholesale residential mortgage lender, strong financial
profile with improved capitalization, solid asset quality of the
servicing portfolio, a robust and integrated technology platform,
and an experienced management team. The company has a dominant
position within the wholesale channel with a market share of 43%,
and was the nation's largest mortgage originator in 9M24 and FY23,
according to Inside Mortgage Finance.
The ratings are constrained by the highly cyclical nature of the
mortgage origination business and a reliance on secured,
short-term, uncommitted funding facilities. UWM faces elevated key
person risk due to CEO and president, Mat lshbia, who, along with
the lshbia family, maintains significant control as majority
shareholders. Additionally, UWM's exclusive focus on the wholesale
channel limits potential market share gains in the overall mortgage
market.
The Positive Outlook reflects the significant strengthening of
UWM's franchise over the last several years, which should increase
the durability of its business model through market cycles. It also
reflects improvements to the company's funding profile and
liquidity resources. Fitch could upgrade the ratings by one notch
if the company economically addresses its $800 million 2025
unsecured note maturity without further asset encumbrance and
maintains corporate leverage at or below 1.0x.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The Outlook could be revised to Stable due to further asset
encumbrance resulting from the refinancing of the 2025 notes and/or
corporate leverage sustained above 1.0x. Beyond that, a rating
downgrade could result from:
- Gross leverage sustained above 5.0x and/or corporate leverage
sustained above 1.5x;
- A decrease in aggregate liquidity resources or reduction in
unencumbered assets that constrain the company's funding
flexibility, and/or increased utilization of secured funding that
reduces the unsecured funding mix below 10%;
- Sustained profitability challenges that erode tangible equity and
the firm's market position;
- Regulatory scrutiny resulting in UWM incurring substantial fines
that negatively impact its franchise or operating performance;
- The departure of Mat lshbia and/or reduced involvement of the
Ishbia family, who have led the growth and direction of the
company.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Refinancing or repayment of the 2025 unsecured notes without
further asset encumbrance;
- Corporate leverage sustained at or below 1.0x
- Gross leverage sustained below 5.0x;
- Sustained earnings generation in excess of capital
distributions;
- Improvement in the funding profile, including an extension of
funding duration and/or an increase in the proportion of committed
funding and the maintenance of unsecured debt above 25% of total
debt;
- Increased liquidity resources above 30% of total debt
- Maintenance of market position and leadership in the wholesale
origination channel;
- Demonstrated effectiveness of corporate governance policies.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
The senior unsecured debt rating is equalized with the IDR given
the funding mix and adequate unencumbered assets available to the
noteholders, suggesting average recovery prospects in a stressed
scenario.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The rating on the unsecured notes is primarily sensitive to changes
in the Long-Term IDR and would be expected to move in tandem.
However, a material decrease in unencumbered assets and/or an
increase in the proportion of secured funding could result in a
widening of the notching between the IDR and the unsecured notes.
ADJUSTMENTS
The Standalone Credit Profile (SCP) has been assigned below the
implied SCP due to the following adjustment reason: Weakest Link -
Funding, Liquidity & Coverage (negative).
The Business Profile score has been assigned below the implied
score due to the following adjustment reason: Business model
(negative).
The Asset Quality score has been assigned below the implied score
due to the following adjustment reason: Non-loan exposures
(negative).
The Earnings & Profitability score has been assigned below the
implied score due to the following adjustment reason: Historical
and future metrics (negative).
The Funding, Liquidity & Coverage score has been assigned below the
implied score due to the following adjustment reason: Funding
flexibility (negative).
Entity/Debt Rating Prior
----------- ------ -----
UWM Holdings, LLC
senior unsecured LT BB- New Rating BB-(EXP)
V MANAGEMENT: Gets Interim OK to Use Cash Collateral Until Jan. 14
------------------------------------------------------------------
V Management Group Nevada Corporation and TMAD Wigwam LLC received
interim approval from the U.S. Bankruptcy Court for the District of
Nevada to use cash collateral until Jan. 14.
Clark County Credit Union (CCCU) asserts an interest in the cash
collateral on account of its $520,950 loan to TMAD Wigwam. To
secure the loan, TMAD Wigwam and its affiliates, including V
Management, granted CCCU a security interest in their assets, such
as inventory, equipment, and accounts receivable.
The interim order signed by Judge Natalie Cox directed the
companies to make a normal non-default payment of $8,118.02 per
month to CCCU as adequate protection, and grant CCCU a valid,
perfected, and enforceable new priority replacement lien on all
property of the companies and all proceeds, rents, products, or
profits thereof.
The final hearing is set for Jan. 14.
About V Management Group Nevada Corporation
V Management Group Nevada Corporation manages various Teriyaki
Madness franchises in Las Vegas, and also serves as tenant under
the leases for the locations, among other functions.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 24-16159-nmc) on November
25, 2024. In the petition signed by Ohmar Villavicencio, managing
member, the Debtor disclosed up to $50,000 in assets and
liabilities.
Judge Natalie M. Cox oversees the case.
Matthew C. Zirzow, Esq., at Larson & Zirzow, LLC, represents the
Debtor as legal counsel.
V1 TECH: Seeks Chapter 11 Bankruptcy Protection in Texas
--------------------------------------------------------
On December 3, 2024, V1 Tech LLC filed Chapter 11 protection in the
Northern District of Texas. According to court filing, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states that funds will be available to
unsecured creditors.
About V1 Tech LLC
V1 Tech LLC offers RGB frame, wall art, mouse pads, GPU backplates,
GPU support brackets, RGB fans, and phone cases.
V1 Tech LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Tex. Case No.: 24-44509) on December 3, 2024. In
the petition filed by Hassan Alaw, as owner, the Debtor reports
estimated assets between $100,000 and $500,000 and estimated
liabilities between $1 million and $10 million.
The Debtor is represented by:
Robert T. DeMarco, Esq.
DEMARCO MITCHELL, PLLC
500 N. Central Expressway Suite 500
Plano, TX 75074
Tel: (972) 991-5591
Email: robert@demarcomitchell.com
VALDESIA GARDENS: Case Summary & Seven Unsecured Creditors
----------------------------------------------------------
Debtor: Valdesia Gardens Housing Development Corporation
c/o Baez Hughes Development Corporation
48 Carthage Road
Scarsdale, NY 10583
Business Description: Valdesia Gardens is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)). The Debtor is the owner
of the real property located at 569-575
Prospect Ave., Bronx, NY valued at $15
million.
Chapter 11 Petition Date: December 13, 2024
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 24-23086
Judge: Hon. Kyu Young Paek
Debtor's Counsel: Jonathan S. Pasternak, Esq.
DAVIDOFF HUTCHER & CITRON LLP
605 Third Avenue, 34th Floor
New York, NY 10158
Tel: 212-557-7200
Fax: 212 286 1884
Total Assets: $15,000,000
Total Liabilities: $22,590,660
The petition was signed by David Goldwasser as CRO.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/YKYKVOY/Valdesia_Gardens_Housing_Development__nysbke-24-23086__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Seven Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Bayport Construction Corp. Mechanics Lien $146,289
c/o Muchmore & Assocs PLLC
217 Havemeyer St
4th Floor
Attn: Garrett Cusack, Esq.
Brooklyn, NY 11211
2. CPC Funding SPE 1 LLC $4,000,000
c/o Windels Marx
Lane & Mittendorf
156 W. 56th Street
Attn: Daniel F. Corrigan, Esq.
New York, NY 10019
3. Environmental Control Board Unknown
Box 2339
Peck Slip Station Road
New York, NY 10272
4. Internal Revenue Service $1,200,000
P.O. Box 3000
Church St. Station
New York, NY 10008
5. Modern Construct & Steel, Inc. $222,022
28 Derick Court
Staten Island, NY 10309
6. NYC Housing Preservation $2,000,000
Development
c/o NYC Law Department
100 Church Street
20th Floor
New York, NY 10007
7. The Reliable Automatic Sprinkler Co. $22,349
c/o Block, Longo, LaMarca & Brezenski PC
200 Delaware Avenue,
Ste 1200
Attn: Christopher Cardillo, Esq.
Buffalo, NY 14202
VERINT SYSTEMS: Egan-Jones Hikes Senior Unsecured Ratings to BB+
----------------------------------------------------------------
Egan-Jones Ratings Company on November 4, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Verint Systems Inc. to BB+ from BB.
Headquartered in Huntington, New York, Verint Systems Inc. provides
analytic solutions for communications, interception, digital video
security and surveillance, and enterprise business intelligence.
VIASAT INC: Egan-Jones Retains CCC+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on November 5, 2024, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Viasat, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Carlsbad, California, Viasat, Inc. operates as a
communication company.
VILLAGE OAKS: Lisa Holder Appointed as Chapter 11 Trustee
---------------------------------------------------------
Tracy Hope Davis, the U.S. Trustee for Region 17, appointed Lisa
Holder as Chapter 11 trustee for Village Oaks Senior Care, LLC.
The Chapter 11 trustee can be reached at:
Lisa Holder
2601 Kilcarey Court
Bakersfield, California 93306
Telephone: (661) 205-2385
Email: Lholder@Lnhpc.com
About Village Oaks Senior Care
Village Oaks Senior Care, LLC, a company in El Dorado Hills,
Calif., owns and operates community care facilities for the
elderly.
Village Oaks Senior Care filed Chapter 11 petition (Bankr. E.D.
Calif. Case No. 24-22206) on May 21, 2024, with total assets of
$1,440,832 and total liabilities of $3,369,013 as of Dec. 31, 2023.
Lisa Holder, Esq., a practicing attorney in Bakersfield, Calif.,
serves as Subchapter V trustee.
Judge Christopher D. Jaime oversees the case.
D. Edward Hays, Esq., at Marshack Hays Wood, LLP, is the Debtor's
legal counsel.
Blanca Castro has been appointed as patient care ombudsman in the
Debtor's Chapter 11 case.
VIVOT EQUIPMENT: Gets OK to Use Cash Collateral Until Dec. 19
-------------------------------------------------------------
Vivot Equipment Corporation and its affiliates received sixth
interim approval from the U.S. Bankruptcy Court for the District
Court of the Virgin Islands to use cash collateral to pay
operational expenses.
The interim order signed by Judge Mary Walrath approved the
companies' continued use of cash collateral until Dec. 19 in
accordance with their budget.
Touchmark National Bank, Live Oak Bank, the U.S. Department of
Agriculture Business & Industry Program, the U.S. Small Business
Administration, and Corporation System, as representative, assert
an interest in the companies' cash collateral.
These creditors will be granted replacement liens and security
interests in all post-petition assets of the companies to the same
extent and with the same validity as their replacement liens and
security interests.
The next hearing is scheduled for Dec. 19.
About Vivot Equipment
Vivot Equipment Corporation and its affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.V.I. Case
No. 24-10002) on June 10, 2024, with $10 million to $50 million in
both assets and liabilities.
Judge Mary F. Walrath oversees the cases.
Semaj I. Johnson, Esq., at The Johnson Law Firm, serves as the
Debtors' bankruptcy counsel.
VORTEX OPCO: DoubleLine ISF Marks $1.3MM Loan at 28% Off
--------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $1,375,664 loan
extended to Vortex Opco LLC to market at $993,918 or 72% of the
outstanding amount, according to a disclosure contained in
DoubleLine ISF's Amended Form N-CSR for the six-month period ended
September 30, 2024, filed with the U.S. Securities and Exchange
Commission.
DoubleLine ISF is a participant in a Senior Secured First Lien Term
Loan to Vortex Opco LLC. The loan accrues interest at a rate of
9.68% (3 Month term SOFR+ 4.25%) per annum. The loan matures on
December 15, 2028.
DoubleLine ISF was formed as a closed-end management investment
company registered under the Investment Company Act of 1940, as
amended and originally classified as a non-diversified fund. The
Fund is currently operating as a diversified fund.
DoubleLine ISF is led by Ronald R. Redell, President and Chief
Executive Officer; and Henry V. Chase, Treasurer and Principal
Financial and Accounting Officer. The Fund can be reach through:
Ronald R. Redell
President and Chief Executive Officer
c/o DoubleLine Capital LP
2002 North Tampa Street, Suite 200
Tampa, FL 33602
Tel. No.: (813) 791-7333
Vortex Opco LLC, is a new subsidiary created by United SiteServices
Inc. to issue new debt, which includes $431 million in first-lien,
first-out debt, $1.66 billion of first-lien, second-out
term loans, and $125 million of first-lien, third-out 8% senior
secured notes. USS provides portable sanitation and related site
services.
VROOM INC: Unsecureds Will Get 100% of Claims in Prepackaged Plan
-----------------------------------------------------------------
Vroom, Inc., filed with the U.S. Bankruptcy Court for the Southern
District of Texas a Disclosure Statement for the Prepackaged Plan
of Reorganization dated November 13, 2024.
Vroom was founded in 2012 under the name BCM Partners III, Corp. On
June 25, 2013, the Company changed its name to AutoAmerica, Inc.,
and on July 9, 2015, the Company changed its name to Vroom, Inc.
Vroom's comprehensive service included purchase, reconditioning,
and listing of used cars on its website, assisting customers with
procuring financing through partner banks, and shipping newly
purchased vehicles directly to their new owners. Vroom backed its
customers' satisfaction with a seven-day/250-mile return period and
a 90-day limited warranty.
The Debtor has entered into the Restructuring Support Agreement
with (i) certain holders (the "Consenting Noteholders") of the
Debtor's 0.750% convertible senior notes due 2026 (the "Unsecured
Notes") issued under that certain Indenture, dated as of June 18,
2021 (as amended, restated, amended and restated, supplemented, or
otherwise modified from time to time, the "Unsecured Notes
Indenture"), by and between Vroom, as issuer, and U.S. Bank
National Association, as trustee (the "Unsecured Notes Indenture
Trustee") and (ii) certain holders of Equity Securities of Vroom
(the "Consenting Equity Interest Holders," and together with the
Consenting Noteholders, the "Consenting Stakeholders").
The Consenting Noteholders include Holders of a significant
majority of the Debtor's outstanding funded debt, namely, creditors
beneficially holding approximately 98% of the aggregate outstanding
principal amount of Unsecured Notes, as of the signing of the
Restructuring Support Agreement. Such parties represent the
requisite voting majorities under the Bankruptcy Code for Class 3
(Unsecured Notes Claims).
It is contemplated that through the Restructuring, the Debtor's
total funded debt of approximately $290.5 million in principal
amount will be equitized. Upon emergence from chapter 11, the
Reorganized Debtor will use commercially reasonable efforts to list
the New Common Stock for trading on the Nasdaq Global Select
Market, any of the other Nasdaq market tiers, the New York Stock
Exchange, or a comparable nationally recognized securities
exchange. The Restructuring will include the following
transactions:
Under the Plan, the Debtor's non-Affiliate stakeholders will
receive treatment as follows:
* Each Holder of Claims under the Unsecured Notes Indenture
(the “Unsecured Notes Claims”) will receive, except to the
extent that such Holder agrees in writing to less favorable
treatment, on the Effective Date, its Pro Rata share of 92.94% of
the New Common Stock (subject to dilution by (i) the New Warrants,
(ii) the MIP Awards, and (iii) the Post-Effective Date Equity
Awards).
* Each Holder of any Equity Security or other ownership
interest in the Debtor as in existence immediately before the Plan
Effective Date, but excluding any Existing Equity Awards (the
"Existing Equity Interests"), will receive, except to the extent
that such Holder agrees in writing to less favorable treatment, on
the Effective Date, (i) its Pro Rata share of 7.06% of the New
Common Stock (subject to dilution by (a) the New Warrants, (b) the
MIP Awards, and (c) the Post-Effective Date Equity Awards) and (ii)
its Pro Rata share of the New Warrants.
* Except to the extent the Holder of any options or restricted
stock units representing rights to purchase or acquire any Equity
Securities of the Debtor as in existence immediately before the
Plan Effective Date (the "Existing Equity Awards," and together
with the Existing Equity Interests, the "Equity Interests") agrees
in writing to less favorable treatment, on the Effective Date, all
Existing Equity Awards shall be converted into new awards (the
"PostEffective Date Equity Awards") exchangeable into New Common
Stock on the same terms and conditions, and for the same number of
units, applicable to the Existing Equity Awards in respect of the
Existing Equity Interests, as of immediately prior to the Plan
Effective Date.
* Holders of Other Priority Claims, Secured Claims, General
Unsecured Claims, and 510(b) Claims will be Unimpaired and are
presumed to accept the Plan.
Class 4 consists of General Unsecured Claims. Each Holder of an
Allowed General Unsecured Claim shall receive, in full and final
satisfaction, settlement, release and discharge of, and in exchange
for, such Allowed General Unsecured Claim, on or as soon as
practicable after the Effective Date or when such obligation
becomes due in the ordinary course of business in accordance with
applicable law or the terms of any agreement that governs such
Allowed General Unsecured Claim, whichever is later, in the sole
discretion of the Debtor, either (a) payment in full in Cash, or
(b) such other treatment as to render such Holder Unimpaired in
accordance with section 1124 of the Bankruptcy Code. This Class
will receive a distribution of 100% of their allowed claims.
All Cash necessary for the Debtor or the Reorganized Debtor, as
applicable, to make payments required pursuant to the Plan will be
obtained from their respective Cash balances, including Cash from
operations. Cash payments to be made pursuant to the Plan will be
made by the Reorganized Debtor. The Debtor or the Reorganized
Debtor, as applicable, may transfer funds from its NonDebtor
Affiliates to itself through its integrated cash management system
and/or intercompany transactions as it determines to be necessary
or appropriate to enable the Reorganized Debtor to make the
payments and distributions contemplated by the Plan.
To the extent consistent with any applicable limitations set forth
in any applicable post-Effective Date agreement, any changes in
intercompany account balances resulting from such transfers will be
accounted for and settled in accordance with the Debtor's
historical intercompany account settlement practices and will not
violate the terms of the Plan.
A full-text copy of the Disclosure Statement dated November 13,
2024 is available at https://urlcurt.com/u?l=B1LAaK from
PacerMonitor.com at no charge.
Proposed counsel to the Debtor:
John F. Higgins, Esq.
PORTER HEDGES LLP
1000 Main St., 36th Floor
Houston TX 77002
Tel: (713) 226-6000
E-mail: jhiggins@porterhedges.com
About Vroom Inc.
Vroom, Inc. (NASDAQ: VRM) is a parent company of United Auto Credit
Corporation and CarStory. Previously, it was a used car retailer
and e-commerce company that let consumers buy, sell, and finance
cars online. Vroom ceased e-commerce automotive sales operations
in January 2024.
Vroom Inc. sought relief under Chapter 11 of the Bankruptcy Code
(Bankr. S.D. Tex. Case No. 24-90571) on Nov. 13, 2024. In the
petition filed by CEO Thomas Shortt, the Debtor reported total
assets of $43,807,067 and total debt of $304,615,138 as of Sept.
30, 2024.
Bankruptcy Judge Christopher M. Lopez oversees the case.
Porter Hedges LLP, led by John F. Higgins, serves as the Debtor's
bankruptcy counsel. Latham Watkins LLP serves as the Debtor's
corporate, finance, tax, and securities counsel. Stout Risius
Ross, LLC, serves as the Debtor's financial advisor. Deloitte
Touche Tohmatsu Limited serves as the Debtor's tax consultant. The
Overture Group, LLC, serves as the Debtor's compensation
consultant. Verita Global is the Debtor's noticing and
solicitation agent.
WELLPATH HOLDINGS: Court Stays Morgan Case Due to Bankruptcy
------------------------------------------------------------
Chief Judge Pamela Pepper of the United States District Court for
the Eastern District of Wisconsin stayed the case captioned as
LEVELL MORGAN, Plaintiff, v. WELLPATH, LLC and MILWAUKEE COUNTY,
Defendants, Case No. 23-cv-972-pp (E.D. Wis.) as to defendant
Wellpath, LLC.
On November 19, 2024, counsel for defendant Wellpath, LLC filed a
Notice of Bankruptcy Filing and Imposition of Automatic Stay. The
notice states that on November 11, 2024, Wellpath filed a Chapter
11 bankruptcy petition in the United States Bankruptcy Court for
the Southern District of Texas (Houston Division).
The complaint alleges that Wellpath was the provider of medical
services for persons incarcerated at the Milwaukee County Jail,
where the plaintiff was a pretrial detainee during the events
alleged in the complaint. The complaint alleges that Wellpath
approved only very conservative treatment for the plaintiff's
severe medical issues and ignored recommendations from his medical
providers. Although this order stays proceedings as to Wellpath,
the court will require the remaining defendant, Milwaukee County,
to file a status report advising the court of its proposed next
steps given this development.
The plaintiff may move to lift the stay if he believes an exception
exists. Any party may move to lift the stay within thirty days
following the conclusion of the bankruptcy proceedings or the day
on which the automatic stay is lifted.
The court orders that defendant Milwaukee County must file a status
report by the end of the day on December 13, 2024, advising the
court of the impact of the bankruptcy filing on the plaintiff's
claims. Until then, the case will proceed against Milwaukee County
consistent with the scheduling order entered on December 12, 2023,
as modified on
October 24, 2024.
A copy of the Court's decision is available at
http://urlcurt.com/u?l=lYTmj1
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.
WELLPATH HOLDINGS: U.S. Trustee Appoints Susan Goodman as PCO
-------------------------------------------------------------
Kevin Epstein, the U.S. Trustee for Region 7, appointed Susan
Nielsen Goodman as patient care ombudsman for Wellpath Holdings
Inc. and affiliates.
Section 333(b) of the Bankruptcy Code provides that the PCO shall:
* 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 this 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; and
Section 333(c) of the Bankruptcy Code provides further that:
* An ombudsman appointed under section 333(a) of the
Bankruptcy Code shall maintain any information obtained by such
ombudsman under section 333 of the Bankruptcy Code that relates to
patients (including information relating to patient records) as
confidential information. Such ombudsman may not review
confidential patient records unless the court approves such review
in advance and imposes restrictions on such ombudsman to protect
the confidentiality of such records.
The PCO will keep contemporaneous records of time and expenses in
tenths (.1) hour increments and bill the estate at no more than
$450.00 per hour for services rendered, $225.00 per hour for travel
time, $150.00 to $450.00 per hour and for paraprofessional and
professional services, if utilized, and for reimbursement of actual
and necessary expenses.
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 banker.
WILLENNIUM LLC: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The U.S. Trustee for Region 21 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Willennium, LLC.
About Willennium LLC
Willennium, LLC filed Chapter 11 petition (Bankr. N.D. Ga. Case No.
24-61799) on November 5, 2024, with $1 million to $10 million in
both assets and liabilities.
Judge Lisa Ritchey Craig oversees the case.
WISCONSIN & MILWAUKEE: Counsel's Administrative Claim Disallowed
----------------------------------------------------------------
Chief Judge G. Michael Halfenger of the United States Bankruptcy
Court for the Eastern District of Wisconsin denied Wisconsin &
Milwaukee Hotel LLC's application for allowance and payment of an
administrative claim of Mallery S.C. pursuant to 11 U.S.C. Sec.
503(b)(1)(A).
On June 6, 2024, the debtor filed an application to employ Mallery
as special counsel for the debtor pursuant to 11 U.S.C. section
327(e), and the court entered an order on June 26, 2024 authorizing
the debtor to employ Mallery "as special counsel to represent it in
ongoing state court litigation to contest the amount of property
tax it owes the City of Milwaukee."
Almost four months later the debtor filed an application requesting
that the court allow Mallery an administrative expense under 11
U.S.C. Sec. 503(b)(1)(A) in the amount of $18,406.20 for fees and
costs Mallery incurred that were not included in the scope of the
debtor's authorized engagement of Mallery. The United States
trustee and creditors Computershare Trust Company, N.A., and
Wisconsin & Milwaukee Hotel Funding LLC object, contending that
Sec. 503(b)(1)(A) does not permit allowance of costs and fees of
professionals whose employment by the estate must be authorized by
Sec. 327.
Section 327 applies both to "attorneys" and "other professional
persons", and the court has previously reasoned that controlling
precedent does not authorize the court to allow professionals whose
employment must be approved under Sec. 327 to seek administrative
expenses under Sec. 503(b)(1).
The debtor, however, would read Sec. 503(b)(1)'s "plain meaning" to
allow the court to approve attorneys' administrative expenses under
that section even when not employed under Sec.327. That reading,
however, is foreclosed by precedent: "By making express provision
for employment under Sec. 327, payment under Sec. 330, and priority
under Sec. 503(b)(2), the Code logically forecloses the possibility
of treating Sec. 503(b)(1)(A) as authority to pay (and give
priority to) claims that do not meet
its substantive requirements."
A copy of the Court's decision is available at
https://urlcurt.com/u?l=434Alh
About Wisconsin & Milwaukee Hotel LLC
Wisconsin & Milwaukee Hotel LLC sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Wisc. Case No.
24-21743) on April 9, 2024. In the petition signed by Mark
Flaherty, as manager, the Debtor disclosed up to $50 million in
both assets and liabilities.
Judge G. Michael Halfenger oversees the case.
Michael P. Richman, Esq., at RICHMAN & RICHMAN LLC, is the Debtor's
legal counsel.
WISCONSIN & MILWAUKEE: Seeks to Extend Exclusivity to Feb. 7, 2025
------------------------------------------------------------------
Wisconsin & Milwaukee Hotel LLC, asked the U.S. Court for the
Eastern District of Wisconsin to extend its exclusivity periods to
file a plan of reorganization and obtain acceptance thereof to
February 7, 2025 and April 8, 2025, respectively.
The Debtor explains that there are at this time three overriding
issues in this case, on which the proposal and confirmation of a
plan depends: (a) the treatment of the asserted secured claims of
the Debtor's Lenders Computershare Trust Company, N.A. and
Wisconsin & Milwaukee Hotel Fund LLC ("W&M Funding") (the
"Lenders") (Claims 11 and 12, approximately $50.7 million), (b) the
treatment of the asserted unsecured claims of the Debtor's manager
White Lodging Services Corp. (Claims 15 and 16, approximately $22.5
million), and (c) the determination whether to assume or reject
(and replace with a new manager) the June 14, 2011 management
agreement between WL and the Debtor ("Management Agreement").
The Debtor cites that the decision to assume or reject the
Management Agreement is inextricably intertwined with the
prospective economics of assuming the Management Agreement, and its
impact on the value of the estate. This in turn requires that the
parties have substantial agreement on the Budget for 2025.
The Debtor states that with the desire to engage the Lenders in
settlement discussions, as there are now only three weeks left in
the exclusive periods as previously extended, the Debtor believes
that the time is not sufficient to resolve the Budget issues, and
the critical decision whether to assume or reject the Management
Agreement, which must be made in the same time frame.
The Debtor claims that it had hoped by now to be engaged in
settlement discussions with those parties, in an effort to propose
a consensual plan. However, as the Debtor reported in its First
Exclusivity Motion, efforts to engage the Lenders in early May were
rebuffed, and the Lenders determined that before any such
negotiations could take place, they would procure and obtain an
appraisal of the Hotel.
The Debtor submits that the requested extension is meant to exhaust
the possibilities of proposing a plan that other parties will
consider satisfactory, not to pressure them into yielding to an
unacceptable plan. The continued prospect of a consensual
resolution of the Lenders' and White Lodging Claims, and even if
such a resolution is not achieved, the enhanced likelihood that
soon-to-be-provided appraisal information will enable the Debtor to
propose a plan that will be confirmable, even if it is contested,
also support a further extension.
Wisconsin & Milwaukee Hotel LLC is represented by:
RICHMAN & RICHMAN LLC
Michael P. Richman, Esq.
Claire Ann Richman, Esq.
Eliza M. Reyes, Esq.
122 West Washington Avenue,
Suite 850
Madison, WI 53703
Tel: (608) 630-8990
Fax: (608) 630-8991
Email: mrichman@RandR.law
crichman@RandR.law
ereyes@RandR.law
About Wisconsin & Milwaukee Hotel
Wisconsin & Milwaukee Hotel LLC sought protection under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Wisc. Case No. 24-21743) on
April 9, 2024. In the petition signed by Mark Flaherty, as
manager, the Debtor disclosed up to $50 million in both assets and
liabilities.
Judge G. Michael Halfenger oversees the case.
Michael P. Richman, at RICHMAN & RICHMAN LLC, is the Debtor's legal
counsel.
YATES PROPERTIES: Unsecureds Will Get $20K over 5 Years
-------------------------------------------------------
Yates Properties, Renovations & Management, LLC submitted a
Modification to Plan of Reorganization dated November 13, 2024.
This Plan deals with all property of Debtor and provides for
treatment of all Claims against Debtor and its property.
The Debtor is a Georgia limited liability company and as its
business, Debtor manages residential rental properties located at:
(i) 201 Kyle Springs Lane, Jonesboro, Georgia 30238 ("201 Kyle
Springs"); (ii) 1528 Sarah M Harden Drive SW, Atlanta, Georgia
30311 ("1528 SMH Drive"); (iii) 1546 Sarah M Harden Drive SW,
Atlanta, Georgia 30311 ("1546 SMH Drive"); (iv) 1789 Stanton Road
SW, Atlanta, Georgia 30311 ("1789 Stanton"); (v) 2184 Pinehurst
Drive, East Point, Georgia 30092 ("2184 Pinehurst"); (vi) 5142
Westbrook Place, Union City, Georgia 30291 ("5142 Westbrook"); and
(vii) 1538 Sarah M Harden Drive SW, Atlanta, Georgia 30311 (“1538
SMH Drive”) (the "Business").
The Debtor and Wilmington Savings Fund Society, FSB, not in its
individual capacity, but solely as trustee of MFA 2022-INV1 Trust
("WSFS") stipulated and agreed to extend the 1111(b) Election
Deadline, the Ballot Deadline, and the Objection Deadline as to the
Bank through and including November 12, 2024.
The Debtor modifies the Plan in accordance with Sections 1125 and
1127 of Chapter 11 of Title 11 of the United States Code. The
changes do not materially or adversely affect the rights of any
parties in interest which have not had notice and an opportunity to
be heard with regard thereto.
The Plan, and specifically Article 4, Section 4.9, Class 9: Secured
Claims of Wilmington Savings Fund Society FSB, not in its
individual capacity, but solely as Trustee of MFA 2022-INV1 Trust
(5142 Westbrook Place, Union City, Georgia 30291) is hereby amended
as follows:
* The monthly amount of the distribution to Wilmington on its
Class 9 Secured Claim shall be modified as follows:
-- The Debtor will pay the Class 9 Secured Claim in equal
monthly payments of $1,652.08 each commencing on January 28, 2025
and continuing on the last day of each subsequent month with a
final payment for the then outstanding amount of the Allowed Class
9 Secured Claim on the Class 9 Maturity Date (i.e. November 1,
2051) (collectively, the "Class 9 Monthly Distributions").
* The application of the Unapplied Payments shall be modified as
follows:
-- Wilmington currently holds two (2) payments made by the
Debtor prepetition in the total amount of $3,800.00 (the "Unapplied
Payments"). The Unapplied Payments were not applied to the Class 9
Secured Claim pre-petition. Wilmington will apply the Unapplied
Payments per the terms of the loan documents on the Confirmation
Date.
* The following shall be added to the treatment of the Class 9
Secured Claim.
-- Simultaneously with the Class 9 Monthly Distribution,
Debtor will pay to Wilmington a monthly escrow (the "Class 9
Monthly Escrow") for taxes and insurance to be held in escrow by
Wilmington and distributed by Wilmington as further described in
and in accordance with the nondefault term of the pre-petition loan
documents between Debtor and Wilmington regarding the Class 9
Secured Claim (the "Loan Documents"). Such terms of the Loan
Documents specifically including, without limitation, Section
1.04.3 of the Loan Documents which provides that Debtor shall
deposit with Wilmington, monthly, an amount equal to one twelfth of
the sum of: (i) the aggregate annual payments for the Impositions;
(ii) the annual insurance premiums on the policies of insurance
required to be obtained and kept in force by Grantor under this
Security deed; and (iii) all other periodic charges (other than
interest and principal under the Note) arising out of the ownership
of the Premises or any portion thereof which are or with notice or
the passage or time or both will become a lien against the Premises
or any part thereof."
Like in the prior iteration of the Plan, the Debtor will pay the
Holders of Class 11 General Unsecured Claims in full over five
years. Debtor shall pay such Unsecured Total Distribution in semi
annually payments of $2,000 each commencing on the 15th day of the
sixth month following the Effective Date and continuing
semi-annually thereafter for a total of ten payments. The Total
Unsecured Distributions shall be $20,000.00.
The source of funds for the payments pursuant to the Plan is
Debtor's rental income from each property.
A full-text copy of the Modified Plan dated November 13, 2024 is
available at https://urlcurt.com/u?l=UFlOEo from PacerMonitor.com
at no charge.
About Yates Properties
Yates Properties, Renovations & Management LLC is a limited
liability company.
Yates Properties, Renovations & Management sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.
Ga. Case No. 24-56872) on July 1, 2024. In the petition filed by
Paul Yates, III, as sole member, the Debtor estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by:
Leslie Pineyro, Esq.
JONES & WALDEN LLC
699 Piedmont Avenue NE
Atlanta, GA 30308
Tel: 404-564-9300
E-mail: info@joneswalden.com
ZHANG MEDICAL: Updates Landlord Claim Pay Details
-------------------------------------------------
Zhang Medical P.C., d/b/a New Hope Fertility Center, submitted a
Second Amended Disclosure Statement for Second Amended Plan of
Reorganization dated November 14, 2024.
On July 31, 2024, the Court entered an Order approving applications
for allowance of interim compensation and reimbursement of expenses
for certain estate professionals.
On October 28, 2024, the Court entered an Order approving
applications for allowance of interim compensation and
reimbursement of expenses for certain estate professionals.
The Debtor with the assistance of the CRO has been working with
Savills Inc., the Debtor's real estate broker, to negotiate a new
lease with the Landlord. In mid-October 2024, the Landlord provided
the Debtor with a counter-proposal for new lease terms, and a
resolution of the Landlord's claims against the Estate. In early
November, the Debtor sent the Landlord a second counter proposal
for new lease terms, and a resolution of the Landlord's claims
against the Estate.
The Debtor remains hopeful that it will be able to negotiate new
lease terms with the Landlord so that it only needs to relocate the
lab from the second floor. The Debtor's financial projections,
reflect that the Debtor estimates that it will cost approximately
$400,000 to relocate its lab from the second floor, and to build
out additional office space to accommodate administrative employees
relocated from other space.
The Debtor has updated the Financial Projections to: (a) reflect
the most recent offer made by the Debtor to the Landlord to remain
in the second floor and resolve the Landlord's Allowed Claim, and
also clarify the costs of moving from the second floor lab; and (b)
provide additional insight into the potential costs of moving to
the new potential location if the Debtor is unable to reach an
agreement with the Landlord.
The Debtor estimates that the total cost to relocate the Debtor's
business to a new location, including but not limited to staffing
losses, business interruption, insurance and security for
relocating the frozen stored embryos and eggs, is approximately
$2,100,000. In that case, the Debtor would reallocate funds which
would have been paid to the Landlord under new lease terms to
relocate and pay the necessary initial fees to the new potential
landlord.
On November 4, 2024, the Debtor filed the First Amended Disclosure
Statement for First Amended Plan of Reorganization together with a
redline reflecting the changes made to address the issues raised in
the Landlord Objection. On November 4, 2024, the Debtor also filed
a response to the Landlord Objection. On November 7, 2024, the
Court held a hearing to consider the Landlord Objection and the
First Amended Disclosure Statement and, as a result, the Debtor
filed this further amended Statement.
The Plan provides for the restructuring of the Debtor's balance
sheet by the elimination of a significant amount of unsecured debt,
reducing the Debtor's rent expenses by eliminating unnecessary
space, facilitating the transfer of the IP Assets to the Debtor,
and obtaining Dr. Zhang’s services through the Employment
Agreement for the life of the Plan. The Plan provides for estimated
Distributions to General Unsecured Creditors of approximately 2% to
be paid over three years. The Distributions will be funded by
available Cash from the Debtor's business operations.
Class 3(b) consists of the Landlord Claim, to the extent it becomes
an Allowed Claim. The amount of the Landlord Claim will be
determined by stipulation or order of the Bankruptcy Court. With
respect to the Landlord's Allowed Claim, the Debtor estimates that
the Landlord will receive Distributions over the life of the Plan,
in the aggregate amount of $204,000.00. In addition, as set forth
in the Financial Projections, if the Debtor and the Landlord enter
into a new lease agreement, the Debtor will pay the Landlord a
security deposit in the amount of $706,313, and a lease signing fee
in the amount of $1,071,006 on or as soon as reasonably practicable
after the Effective Date. These amounts may change as the Debtor
negotiates with the Landlord, and any proposed increased payments
will be disclosed to the Court and interested parties in advance of
confirmation of the Plan.
Like in the prior iteration of the Plan, the holders of Allowed
Class 3(a) Claims will receive their Pro Rata Share of
Distributions over the life of the Plan in the aggregate amount of
$192,000.00. The Debtor estimates that holders of Class 3(a) Claims
will receive Distributions equal to approximately 2% of their
Allowed Claims, which estimate shall be confirmed in the Plan
Supplement.
The Plan Administrator, the Debtor, and the Reorganized Debtor, as
applicable, will implement the Plan in a manner consistent with the
terms and conditions set forth in the Plan and the Confirmation
Order. On and after the Effective Date, except as otherwise
provided in the Plan, the Plan Administrator or the Reorganized
Debtor, as applicable, may use, acquire, or dispose of property and
compromise or settle any Claims, Interests, or Causes of Action
without supervision or approval by the Bankruptcy Court and free of
any restrictions of the Bankruptcy Code or Bankruptcy Rules.
The Plan will be funded from Cash on hand and revenue generated
from business operations, as well as the proceeds from any other
Assets available to fund the Plan, including the IP Assets and
recoveries from any Causes of Action.
A full-text copy of the Second Amended Disclosure Statement dated
November 14, 2024 is available at https://urlcurt.com/u?l=boTUm3
from PacerMonitor.com at no charge.
Zhang Medical, PC, is represented by:
Sheryl P. Giugliano, Esq.
Michael S. Amato, Esq.
RUSKIN MOSCOU FALTISCHEK, P.C.
1425 RXR Plaza
East Tower, 15th Floor
Uniondale, New York 11556
Telephone: 516-663-6600
Email: sgiugliano@rmfpc.com
mamato@rmfpc.com
About Zhang Medical
New York-based Zhang Medical P.C. specializes in low and no-drug
infertility solutions that help women conceive with minimal
invasiveness. It conducts business under the name New Hope
Fertility Clinic.
Zhang Medical filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10678) on April
30, 2023, with $1 million to $10 million in both assets and
liabilities. Eric Huebscher has been appointed as Subchapter V
trustee.
Judge Philip Bentley oversees the case.
The Debtor tapped Joseph D. Nohavicka, Esq., at Pardalis &
Nohavicka, LLP, as legal counsel.
David Crapo is the patient care ombudsman appointed in the Debtor's
Chapter 11 case.
[*] Bloomberg Expands Practical Guidance for Legal Professionals
----------------------------------------------------------------
Bloomberg Law announced on Dec. 12, 2024, the multiple new
Practical Guidance resources representing significant increases in
resources on litigation, transactional law, and emerging topics.
Bloomberg Law's Practical Guidance provides a wide range of
documents across many practice areas to help legal professionals be
more efficient and productive. With ready-made templates, samples,
annotated forms, checklists, and guides, Practical Guidance helps
early career associates learn on the job and senior practitioners
quickly refresh on any topic.
Over the past several months, Bloomberg Law has expanded its
litigation Practical Guidance collection with new resources
covering Initiating and Responding to Litigation in New York, Class
Actions & Multi-District Litigation, and Chapter 11 Bankruptcy
expansion.
Bloomberg Law's transactional law Practical Guidance collection
also saw considerable growth, with new resources on Supply Chain,
Tech Licenses & Agreements, and AI in Corporate Transactions.
Additionally, Bloomberg Law's Practical Guidance collection on
emerging topics has seen a significant expansion, with new
resources on the demise of the Chevron doctrine, the Corporate
Transparency Act, DEI in Employment, and Overtime Exemptions &
Eligibility.
"Bloomberg Law's Practical Guidance is designed to be an
all-encompassing resource for legal professionals, providing
immediate access to a diverse range of topics, all crafted by legal
experts," said Alex Butler, head of content and analysis, Bloomberg
Industry Group. "The growth of our collection across litigation,
transactional law, and emerging topics reflects our ongoing
commitment to deliver the most current and effective resources,
ensuring our customers can handle their legal matters with
precision and efficiency."
"Bloomberg Law's Practical Guidance helps us complete work with
efficiency, accuracy, and confidence. It significantly reduces the
amount of time it takes us to complete legal work in-house and thus
reduces our annual spend on outside counsel," said a deputy general
counsel at a multi-billion-dollar financial services company. "It
provides us with an idea of what is 'standard' or typical and it
gives us a better starting point to work on contracts, agreements,
and clauses."
To learn more about Bloomberg Law's latest Practical Guidance
resources, request a demo at https://aboutblaw.com/bguz.
About Bloomberg Law
Bloomberg Law combines the latest in legal technology with workflow
tools, comprehensive primary and secondary sources, trusted news,
expert analysis, and business intelligence. For more than a decade,
Bloomberg Law has been a trailblazer in its application of AI and
machine learning. Bloomberg Law's deep expertise and commitment to
innovation provide a competitive edge to help improve attorney
productivity and efficiency. For more information, visit Bloomberg
Law.
[*] Fitch Puts 15 Corp. Entities Rating Under Criteria Observation
------------------------------------------------------------------
Fitch Ratings. on Dec. 12, 2024, placed the ratings of 15 corporate
entities and 18 associated finance companies Under Criteria
Observation (UCO) following the conversion of its 'Exposure Draft:
Corporate Rating Criteria-Appendix 1: Leases' to final criteria on
December 6, 2024.
The UCO designation indicates that the existing ratings may change
as a direct result of the application of the final criteria. It
does not indicate a change in the underlying credit profile, nor
does it affect existing Outlooks or Rating Watches.
Fitch will review all ratings placed on UCO within six months. Not
all ratings placed on UCO may change on the resolution of UCO.
Key Rating Drivers
Changes in Leverage: The new criteria use 'balance sheet as
reported' lease liabilities to calculate leverage for sectors where
lease-adjusted leverage is still relevant, with the ability to
adjust the reported figure if it is misaligned with its peer group
or to smooth out variations in lease length and discount rates.
This may result in a change in in EBITDAR leverage for certain
issuers compared with its previous method of calculating
lease-equivalent debt.
RATING SENSITIVITIES
The UCO resolution will depend on Fitch's assessment of the
appropriate rating outcome based on the new criteria over the next
six months.
Until the UCO resolutions, existing issuer rating sensitivities are
unchanged.
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
----------- ------ -------- -----
Samsonite
Finco S.ar.l.
Senior
Secured
2nd Lien LT BB+ Under Criteria Observation RR4 BB+
Synlab Bondco
PLC
senior
unsecured LT CCC+ Under Criteria Observation RR6 CCC+
Cinemark
Holdings, Inc. LT IDR B+ Under Criteria Observation B+
CK Hutchison
International
(24) Limited
senior
unsecured LT A- Under Criteria Observation A-
CK Hutchison
Finance (16)
Limited
senior
unsecured LT A- Under Criteria Observation A-
Capri Holdings
Limited LT IDR BBB- Under Criteria Observation BBB-
senior
unsecured LT BBB- Under Criteria Observation BBB-
CK Hutchison
International
(19) Limited
senior
unsecured LT A- Under Criteria Observation A-
Kohl's
Corporation LT IDR BB Under Criteria Observation BB
senior
secured LT BBB- Under Criteria Observation RR1 BBB-
senior
unsecured LT BB Under Criteria Observation RR4 BB
Nordstrom, Inc. LT IDR BB Under Criteria Observation BB
senior
secured LT BBB- Under Criteria Observation RR1 BBB-
senior
unsecured LT BB Under Criteria Observation RR4 BB
CK Hutchison
Interntional
(19) (II)
Limited
senior
unsecured LT A- Under Criteria Observation A-
Hutchison
Whampoa Finance
UK PLC
senior
unsecured LT A- Under Criteria Observation A-
CK Hutchison
International
(17) Limited
senior
unsecured LT A- Under Criteria Observation A-
Ephios Subco 3
S.a.r.l LT IDR B Under Criteria Observation B
senior
secured LT B+ Under Criteria Observation RR3 B+
CK Hutchison
Holdings
Limited LT IDR A- Under Criteria Observation A-
senior
unsecured LT A- Under Criteria Observation A-
CK Hutchison
International
(17) (II)
Limited
senior
unsecured LT A- Under Criteria Observation A-
Hutchison
Whampoa Finance
(CI) Limited
senior
unsecured LT A- Under Criteria Observation A-
Eurofins
Scientific S.E. LT IDR BBB- Under Criteria Observation BBB-
senior
unsecured LT BBB- Under Criteria Observation BBB-
subordinated LT BB Under Criteria Observation BB
Sizzling
Platter, LLC LT IDR B- Under Criteria Observation B-
senior
secured LT B- Under Criteria Observation RR4 B-
super senior LT BB- Under Criteria Observation RR1 BB-
CK Hutchison
International
(20) Limited
senior
unsecured LT A- Under Criteria Observation A-
T-Mobile US,
Inc. LT IDR BBB+ Under Criteria Observation BBB+
Signet
Jewelers Ltd. LT IDR BB+ Under Criteria Observation BB+
Cineplex Inc. LT IDR B Under Criteria Observation B
senior
secured LT BB Under Criteria Observation RR1 BB
Hutchison
Whampoa
International
(03/33) Limited
senior
unsecured LT A- Under Criteria Observation A-
CK Hutchison
International
(16) Limited
senior
unsecured LT A- Under Criteria Observation A-
Levi Strauss
& Co. LT IDR BB+ Under Criteria Observation BB+
senior
secured LT BBB- Under Criteria Observation RR1 BBB-
senior
unsecured LT BB+ Under Criteria Observation RR4 BB+
CK Hutchison
Europe Finance
(18) Limited
senior
unsecured LT A- Under Criteria Observation A-
KinderCare
Learning
Companies, Inc. LT IDR B+ Under Criteria Observation B+
CK Hutchison
International
(21) Limited
senior
unsecured LT A- Under Criteria Observation A-
CK Hutchison
International
(24) (II)
Limited
senior
unsecured LT A- Under Criteria Observation A-
[*] Groups Condemn "Betrayal of Public Health" Amid Settlement
--------------------------------------------------------------
Three antitobacco groups, Physicians for a Smoke-Free Canada,
Action on Smoking & Health (ASH Canada) and the Quebec Coalition
for Tobacco Control condemned the unpresented selling-out to Big
Tobacco with the creditor vote on Dec. 12, 2024, approving the
settlement plan after five years of secret backdoor negotiations.
"Provincial and territorial governments that voted for this plan
have thrown the public's interest under the bus. They have given
the tobacco industry everything it could possibly have wished for.
With this immensely flawed settlement, they have squandered a
unique opportunity to change Big Tobacco's profitable addiction and
disease business model in Canada," says Flory Doucas, Co-Director
and spokesperson of the Quebec Coalition for Tobacco Control.
"Today's vote is a very sad day for tobacco control and a dangerous
precedent for achieving corporate accountability. The CCAA process
was always the wrong tool to deal with rogue industry like tobacco
giants whose products have killed over a million smokers in
Canada.
"The money to be gained through these negotiations has blinded
provincial governments to the further harm these companies will
continue to cause. There was sufficient money on the table to
properly compensate victims without relying on future sales to fund
payments to governments. Normally, companies facing insolvency are
forced to restructure, but not Big Tobacco. They can continue
'business as usual' to recruit and addict new generations of
addicts whose lives will be ruined and whose diseases will result
in more health care costs.
"The settlement contains no measures to accelerate the decline in
smoking or prevent the recruitment of new smokers and vapers.
Instead, the settlement aims to perpetuate commercial tobacco use
and youth vaping for the foreseeable future. The Plan is actually
designed to be financed by the continued tobacco purchases of
addicted smokers. Future payments to provinces depend on the
continuation of financial and social harm caused by tobacco
addiction," she adds
According to the now approved plan, provinces and territories will
receive a percentage of the net revenues from tobacco sales
(exclusive of excise and sales taxes) until $20 billion has been
received, and forecasts that the companies' revenues will be
maintained at over $1 billion per year. "
Provinces and territories should counterbalance this money-grab
with concrete measures
"Given the colossal net loss for public health that this settlement
represents, provinces should compensate their failure to include
concrete health measures in this settlement with new and bold
provincial laws to accelerate the decline in smoking and reverse
the youth vaping problem. Endgame measures like phasing out
combustible cigarettes or eliminating the profitability of
addiction to harmful products are workable options to consider,"
says Les Hagen, Executive Director of ASH-Canada. "If Canadian
governments can phase-out internal combustion vehicles, single-use
plastics and CO2 emissions--they can certainly phase-out an
industry whose products kill almost 50,000 Canadians annually."
Nothing to acknowledge or correct harmful behaviour
"The settlement does nothing to acknowledge, address or correct the
harmful and wrongful actions of the tobacco industry," adds Cynthia
Callard, Executive Director of Physicians for a Smoke-Free Canada.
Quebec courts ruled that Canada's three largest cigarette
manufacturers acted illegally throughout the decades that were the
subject of one of Canada's longest civil tort trials. The companies
were found guilty of failing to ensure that consumers were provided
with information about the risks associated with their products, of
misleading consumers by attacking the health information provided
by others, of misleading consumers through their advertising and of
violating the rights of Quebecers to life and personal security.
These wrongful behaviours did not end in 1998, and that there are
strong echoes of their past behaviour in their current marketing of
novel nicotine products.
Protecting the industry's new nicotine products
"Instead of ensuring that there is a foreseeable end to the
industry's harmful and addictive products and deceitful marketing,
the settlement ensures that they will continue," adds Ms Callard.
Indeed, the settlement contains a set of covenants and undertakings
by the companies, including a commitment that the "operational
practices" they have established for selling tobacco will be
maintained. The apparent goal of this covenant is to ensure that
tobacco revenues and the payments that are based on them will
remain high.
"Under the bankruptcy process, governments could have negotiated
solutions to such problems like front groups that parrot industry
half-truths, legal threats and an ever-evolving array of new
products and gimmicks aimed to eluding rules that protect kids. On
the contrary, the provinces and territories agreed to prioritize
the viability of the tobacco industry's new business model focussed
of nicotine addiction through products like vaping, heated tobacco
and other novel products," explains Ms Callard.
"One has to ask: why grant the tobacco industry the rare and unique
privilege of carving out the profits generated by these new product
categories? Any other company would have dig into all of their
profits to pay such fines. After all, it's the owners and
shareholders who share the responsibility for the damage their
products cause, not the products themselves."
Even the $1 billion that is meant to create a foundation to fund
research is only focused on "improving outcomes in tobacco-related
diseases" to "provide indirect benefits to" smokers who were or
will be injured by tobacco products. This as well is no threat to
industry profits as they will have already cashed from all the
cigarettes these victims have purchased. Nothing in the foundation
rules allows aims to prevent addiction and harms to new consumers
or to help smokers quit or to support the traditional pillars of
tobacco control.
[*] Singh Returns to Weil Gotshal as Restructuring Dep't Co-Chair
-----------------------------------------------------------------
International law firm Weil, Gotshal & Manges LLP on Dec. 13
announced that Sunny Singh has returned to the Firm as Co-Chair of
Weil's market-leading Restructuring Department, based in the New
York office.
Mr. Singh, who joined Weil in 2008 and was a partner in the
Restructuring Department from 2017 to 2023, arrives from another
international law firm where he was Head of their U.S. Company-Side
Restructuring team. At Weil, he will serve alongside Matt Barr,
Gary Holtzer and Jeffrey Saferstein as Co-Chair of the global
Restructuring Department, comprising 140 lawyers around the world.
"We're delighted to welcome Sunny back to the Firm," said Weil
Executive Partner Barry Wolf. "Throughout his years of practice, he
has distinguished himself as an exceptional restructuring lawyer,
client advisor and colleague. We are excited to open a new chapter
with Sunny as he takes on this important leadership role."
"We've worked side by side with Sunny on some of the most complex
corporate restructurings and turnaround situations of the past
decade, and we know our clients will benefit enormously from his
keen judgment and wealth of experience," said Matt Barr, Co-Chair
of Weil's Restructuring Department. "We are thrilled to have Sunny
back on our team."
"We have known Sunny for well over a decade and have always admired
the results he achieves for clients, be they debtors, creditors,
boards, sponsors, investors or other parties," said Gary Holtzer,
Co-Chair of Weil's Restructuring Department. "His extensive
experience guiding clients in highly complex, distressed situations
will be of tremendous value to our clients around the world."
Mr. Singh brings deep experience leading all aspects of highly
complex domestic and international restructuring matters. He
advises debtors, boards of directors, sponsors, investors and other
interested parties on some of the world's most significant chapter
11 cases, pre-packaged bankruptcies and out-of-court
restructurings. Mr. Singh routinely advises on matters spanning a
wide range of industries, such as energy, technology, retail,
infrastructure, telecommunications, real estate and financial
services.
Mr. Singh has worked on some of the largest and most complex
restructuring matters, including representing the chapter 11
debtors in Exide, a global restructuring which resulted in a
first-of-its-kind global settlement with more than a dozen
regulators to resolve hundreds of millions of dollars of Exide's
historical environmental liabilities; the Sears debtors in their
chapter 11 cases, which were some of the largest retail chapter 11
filings ever; and J. Crew, one of the nation's premier clothing
retailers, in its groundbreaking out-of-court exchange.
"Returning to Weil is a wonderful opportunity to leverage my
diverse experience to help guide and lead the Restructuring
Department," said Mr. Singh. "I am honored to step into this role
at a firm that has been so integral in the history of restructuring
practice, and look forward to collaborating with my Weil colleagues
as we forge its future together."
About Weil's Restructuring Department
Weil invented much of what has become standard practice in the
restructuring field. For more than 50 years, Weil has played a
pivotal role in defining this field by offering creative, practical
and thoughtful solutions for its clients. The Firm has served as
chief debtors' counsel in six of the seven largest U.S. bankruptcy
filings in history and has represented clients in numerous
complicated cross-border insolvency and restructuring matters.
Weil's global Restructuring group of 140 dedicated lawyers
coordinate across the United States, Europe, Middle East and Asia
to provide clients with innovative, bespoke solutions to complex
cross-border restructurings. Weil's broad-based experience also
includes numerous significant creditor representations,
representations of purchasers and sellers of distressed assets, and
substantial litigation.
About Weil
Founded in 1931, Weil, Gotshal & Manges LLP has been a preeminent
provider of legal services for more than 90 years. With
approximately 1,200 lawyers in offices on three continents, Weil
has been a pioneer in the marketplace and a first-mover in the
establishment of many significant practice areas. The Firm's four
departments, Corporate, Litigation, Restructuring, and Tax,
Executive Compensation & Benefits, and more than two dozen practice
groups are consistently recognized as leaders in their respective
fields.
[^] BOND PRICING: For the Week from December 9 to 13, 2024
----------------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
2U LLC TWOU 2.250 40.420 5/1/2025
99 Cents Only Stores LLC NDN 7.500 6.280 1/15/2026
99 Cents Only Stores LLC NDN 7.500 12.316 1/15/2026
99 Cents Only Stores LLC NDN 7.500 12.316 1/15/2026
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 35.087 2/15/2028
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 36.357 2/15/2028
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 34.936 2/15/2028
Amyris Inc AMRS 1.500 1.067 11/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
At Home Group Inc HOME 7.125 32.134 7/15/2029
At Home Group Inc HOME 7.125 32.134 7/15/2029
Audacy Capital LLC CBSR 6.750 2.858 3/31/2029
Audacy Capital LLC CBSR 6.500 3.688 5/1/2027
Audacy Capital LLC CBSR 6.750 2.858 3/31/2029
Avidbank Holdings Inc AVBH 5.000 90.157 12/30/2029
Avidbank Holdings Inc AVBH 5.000 90.157 12/30/2029
Avon Products Inc AVP 8.450 5.000 3/15/2043
Azul Investments LLP AZUBBZ 7.250 64.000 6/15/2026
Azul Investments LLP AZUBBZ 7.250 65.503 6/15/2026
BPZ Resources Inc BPZR 6.500 3.017 3/1/2049
Beasley Mezzanine
Holdings LLC BBGI 8.625 59.000 2/1/2026
Beasley Mezzanine
Holdings LLC BBGI 8.625 59.977 2/1/2026
Biora Therapeutics Inc BIOR 7.250 57.875 12/1/2025
BuzzFeed Inc BZFD 8.500 93.376 12/3/2026
Castle US Holding Corp CISN 9.500 46.044 2/15/2028
Castle US Holding Corp CISN 9.500 46.014 2/15/2028
Catalent Pharma Solutions CTLT 3.125 101.566 2/15/2029
Catalent Pharma Solutions CTLT 3.500 100.710 4/1/2030
Catalent Pharma Solutions CTLT 5.000 99.394 7/15/2027
Catalent Pharma Solutions CTLT 3.500 99.731 4/1/2030
Catalent Pharma Solutions CTLT 3.125 101.530 2/15/2029
Citigroup Inc C 5.750 100.000 12/19/2028
CorEnergy Infrastructure
Trust Inc CORR 5.875 70.250 8/15/2025
Cornerstone Chemical Co LLC CRNRCH 10.250 50.500 9/1/2027
Curo Oldco LLC CURO 7.500 2.980 8/1/2028
Curo Oldco LLC CURO 7.500 11.650 8/1/2028
Curo Oldco LLC CURO 7.500 2.980 8/1/2028
Cutera Inc CUTR 2.250 9.000 6/1/2028
Cutera Inc CUTR 2.250 14.808 3/15/2026
Cutera Inc CUTR 4.000 8.522 6/1/2029
Danimer Scientific Inc DNMR 3.250 10.233 12/15/2026
Enel Finance America LLC ENELIM 7.100 105.767 10/14/2027
Enel Finance America LLC ENELIM 7.100 105.516 10/14/2027
Energy Conversion Devices ENER 3.000 0.762 6/15/2013
Enviva Partners LP /
Enviva Partners
Finance Corp EVA 6.500 25.000 1/15/2026
Enviva Partners LP /
Enviva Partners
Finance Corp EVA 6.500 20.750 1/15/2026
Exela Intermediate LLC /
Exela Finance Inc EXLINT 11.500 34.000 7/15/2026
Exela Intermediate LLC /
Exela Finance Inc EXLINT 11.500 33.500 7/15/2026
Federal Home Loan Banks FHLB 2.000 99.864 12/17/2024
Federal Home Loan Banks FHLB 3.250 99.399 12/16/2024
Federal Home Loan Banks FHLB 1.000 99.369 12/16/2024
Federal Home Loan Banks FHLB 0.550 99.845 12/17/2024
Federal Home Loan Banks FHLB 4.125 99.398 12/19/2024
Federal Home Loan Banks FHLB 1.100 99.370 12/16/2024
Federal Home Loan Banks FHLB 3.000 99.393 12/16/2024
Federal Home Loan Banks FHLB 1.125 99.853 12/17/2024
Federal Home Loan Banks FHLB 1.200 99.299 12/23/2024
Federal Home Loan Banks FHLB 0.600 99.845 12/17/2024
Federal Home Loan
Mortgage Corp FHLMC 5.050 99.431 12/19/2024
Federal Home Loan
Mortgage Corp FHLMC 0.400 99.783 12/17/2024
Federal National
Mortgage Association FNMA 0.400 99.782 12/17/2024
First Republic Bank/CA FRCB 4.375 1.000 8/1/2046
First Republic Bank/CA FRCB 4.625 0.885 2/13/2047
GoTo Group Inc LOGM 5.500 40.354 5/1/2028
GoTo Group Inc LOGM 5.500 40.594 5/1/2028
Goodman Networks Inc GOODNT 8.000 5.000 5/11/2022
Goodman Networks Inc GOODNT 8.000 1.000 5/31/2022
H-Food Holdings
LLC / Hearthside
Finance Co Inc HEFOSO 8.500 3.250 6/1/2026
H-Food Holdings
LLC / Hearthside
Finance Co Inc HEFOSO 8.500 2.945 6/1/2026
Hallmark Financial
Services Inc HALL 6.250 21.034 8/15/2029
Heartland Financial USA Inc HTLF 5.750 98.548 12/30/2024
Homer City Generation LP HOMCTY 8.734 38.750 10/1/2026
Inotiv Inc NOTV 3.250 31.000 10/15/2027
Invacare Corp IVC 5.000 0.667 11/15/2024
JPMorgan Chase Bank NA JPM 2.000 89.575 9/10/2031
JPMorgan Chase
Financial Co LLC JPM 5.450 99.468 6/12/2026
JPMorgan Chase
Financial Co LLC JPM 5.150 99.581 3/23/2026
JPMorgan Chase
Financial Co LLC JPM 5.650 99.376 6/23/2028
Kroger Co/The KR 4.900 100.576 9/15/2031
Kroger Co/The KR 4.650 100.590 9/15/2029
Kroger Co/The KR 4.700 100.724 8/15/2026
Kroger Co/The KR 4.600 100.661 8/15/2027
Ligado Networks LLC NEWLSQ 15.500 38.063 11/1/2023
Ligado Networks LLC NEWLSQ 15.500 39.000 11/1/2023
Ligado Networks LLC NEWLSQ 17.500 10.000 5/1/2024
Ligado Networks LLC NEWLSQ 17.500 10.000 5/1/2024
Lightning eMotors Inc ZEVY 7.500 1.000 5/15/2024
Luminar Technologies Inc LAZR 1.250 48.650 12/15/2026
MBIA Insurance Corp MBI 16.178 4.547 1/15/2033
MBIA Insurance Corp MBI 16.178 4.547 1/15/2033
Macy's Retail Holdings LLC M 6.700 92.615 7/15/2034
Macy's Retail Holdings LLC M 6.900 86.313 1/15/2032
Mashantucket Western
Pequot Tribe MASHTU 7.350 52.484 7/1/2026
Morgan Stanley MS 1.800 78.368 8/27/2036
NMG Holding Co Inc /
Neiman Marcus
Group LLC NMG 8.500 101.533 10/1/2028
NMG Holding Co Inc /
Neiman Marcus
Group LLC NMG 7.125 101.781 4/1/2026
NMG Holding Co Inc /
Neiman Marcus
Group LLC NMG 8.500 101.781 10/1/2028
NMG Holding Co Inc /
Neiman Marcus
Group LLC NMG 7.125 101.781 4/1/2026
Nomura America Finance LLC NOMURA 3.681 97.437 12/24/2024
PECF USS Intermediate
Holding III Corp UNSTSV 8.000 35.084 11/15/2029
PECF USS Intermediate
Holding III Corp UNSTSV 8.000 35.084 11/15/2029
Pathfinder Bancorp Inc PBHC 5.500 73.020 10/15/2030
Polar US Borrower
LLC / Schenectady
International Group Inc SIGRP 6.750 46.981 5/15/2026
Polar US Borrower
LLC / Schenectady
International Group Inc SIGRP 6.750 46.981 5/15/2026
Provident Trust I MTB 8.290 100.000 4/15/2028
Rackspace Technology
Global Inc RAX 5.375 29.071 12/1/2028
Rackspace Technology
Global Inc RAX 3.500 29.625 2/15/2028
Rackspace Technology
Global Inc RAX 5.375 31.856 12/1/2028
Rackspace Technology
Global Inc RAX 3.500 29.625 2/15/2028
Renco Metals Inc RENCO 11.500 24.875 7/1/2003
Rite Aid Corp RAD 7.700 1.700 2/15/2027
Rite Aid Corp RAD 6.875 3.619 12/15/2028
Rite Aid Corp RAD 6.875 3.619 12/15/2028
RumbleON Inc RMBL 6.750 95.558 1/1/2025
Shutterfly LLC SFLY 8.500 47.500 10/1/2026
Shutterfly LLC SFLY 8.500 88.500 10/1/2026
Southwest Airlines Co LUV 5.250 99.942 5/4/2025
Spanish Broadcasting
System Inc SBSAA 9.750 66.250 3/1/2026
Spanish Broadcasting
System Inc SBSAA 9.750 66.000 3/1/2026
Spirit Airlines Inc SAVE 1.000 35.500 5/15/2026
Spirit Airlines Inc SAVE 4.750 28.000 5/15/2025
Stem Inc STEM 4.250 23.625 4/1/2030
TPI Composites Inc TPIC 5.250 26.680 3/15/2028
TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019
Tricida Inc TCDA 3.500 9.000 5/15/2027
Veritone Inc VERI 1.750 41.875 11/15/2026
Virgin Galactic Holdings SPCE 2.500 44.938 2/1/2027
Vitamin Oldco Holdings Inc GNC 1.500 0.436 8/15/2020
Voyager Aviation Holdings VAHLLC 8.500 9.905 5/9/2026
Voyager Aviation Holdings VAHLLC 8.500 9.905 5/9/2026
Voyager Aviation Holdings VAHLLC 8.500 9.905 5/9/2026
Vroom Inc VRM 0.750 49.000 7/1/2026
WW International Inc WW 4.500 20.045 4/15/2029
WW International Inc WW 4.500 21.446 4/15/2029
Wesco Aircraft Holdings Inc WAIR 8.500 8.000 11/15/2024
Wesco Aircraft Holdings Inc WAIR 9.000 41.936 11/15/2026
Wesco Aircraft Holdings Inc WAIR 13.125 1.102 11/15/2027
Wesco Aircraft Holdings Inc WAIR 8.500 7.979 11/15/2024
Wesco Aircraft Holdings Inc WAIR 9.000 41.936 11/15/2026
Wesco Aircraft Holdings Inc WAIR 13.125 1.102 11/15/2027
Windstream Services
LLC / Windstream
Escrow Finance Corp WIN 7.750 101.416 8/15/2028
Windstream Services
LLC / Windstream
Escrow Finance Corp WIN 7.750 101.300 8/15/2028
*********
Monday's edition of the TCR delivers a list of indicative prices
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