/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/250106.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, January 6, 2025, Vol. 29, No. 5 Headlines 11AM INDUSTRIES: Gets OK to Use Cash Collateral Until Jan. 17 14813 DRAFT HORSE: Taps Rappaport Osborne & Rappaport as Attorney 1851 WARREN: Seeks Chapter 11 Bankruptcy Protection 2446 ENCINAL: Files Chapter 11 Bankruptcy in Texas 68 WAINSCOTT: Case Summary & One Unsecured Creditor A.M. ARTEAGA: Seeks to Hire Thomas E. Brookhouzen as Accountant AFTERSHOCK COMICS: Hires Restructuring as Restructuring Advisor AGAVE BUILDERS: Files Chapter 7 Bankruptcy w/ Over $2.2-Mil. Debt AKOUSTIS TECHNOLOGIES: Foe Seeks Delay of Bidding Protocol Approval ALL INCLUSIVE: Files Emergency Bid to Use Cash Collateral ALL SAFE: Seeks Chapter 11 Bankruptcy Protection in New York ALL STAR TRUCKING: Hires Neeleman Law Group as Legal Counsel ALRACHID LLC: Unsecureds Will Get 19% of Claims in Plan AMERICAN TIRE: Seeks to Hire PricewaterhouseCoopers LLP as Auditor ARTEAGA DENTAL: Seeks to Hire Thomas E. Brookhouzen as Accountant ARTERA SERVICES: 90% Markdown for Oaktree Strategic $27.3MM Loan ASSURE UNDERWRITING: Court Affirms Judgment in Cadence Bank Case ASTRA ACQUISITION: Oaktree Strategic Marks $5.2MM Loan at 17% Off ASTRA ACQUISITION: Oaktree Strategic Marks $8.3MM Loan at 71% Off AVALON PIMA: Hires Marcus & Millichap as Real Estate Broker B.A.S.S. & M.: Taps Brian Ayers of Rock Creek Advisors as CRO BARRYVILLE MGT: Sec. 341(a) Meeting of Creditors on January 29 BARTLEY INVESTMENTS: Selling Baybridge Property to Wisco 7 BARTLEY INVESTMENTS: To Dispose Norma Park Property to Wisco 7 BARTLEY INVESTMENTS: To Sell Murray Heights Property for $260,000 BARTLEY INVESTMENTS: To Sell Westport Property to Wisco 7 BENHAM ORTHODONTICS: Plaintiffs' PI Application Granted in Part BIOLASE INC: Unsecureds Will Get 10% of Claims in Liquidating Plan BLUESUMMIT MEDICAL: Committee Taps Kutak Rock LLP as Legal Counsel BOBEL ELECTRIC: Case Summary & Seven Unsecured Creditors CAMDEN DIOCESE: Insurers Win Appeal to Pause Abuse Settlement CAPITAL PROPERTIES: Hires Peter G. Macaluso as Bankruptcy Counsel CAREMAX INC: Files Monthly Operating Reports Amid Ch. 11 Bankruptcy CAREPOINT HEALTH: Committee Taps Pachulski Stang as Co-Counsel CAREPOINT HEALTH: Committee Taps Sills Cummis & Gross as Co-Counsel CHERRY & CANDLEWOOD: Taps Shaw & Hanover PC as General Counsel CIMG INC: Delays Filing of Annual Report for Fiscal 2024 CMB DATA: Seeks to Use Cash Collateral COASTAL GREEN: Seeks to Hire Buddy D. Ford P.A. as Attorney COGECO COMMUNICATIONS: DBRS Confirms BB(high) Issuer Rating COKING COAL: Hires Epiq Corporate as Claims and Noticing Agent COLD SPRING: Case Summary & 20 Largest Unsecured Creditors COLD SPRING: Seeks Chapter 11 Bankruptcy Protection in New York COLLECTIBLE SUPPLIES: Hires Focus CPA Group Inc as Accountant CONTAINER STORE: Chapter 11 Triggers $243-Mil. Debt Acceleration CYNTHIA R. MURPHY: First Amended Plan of Reorganization Confirmed D DUNCAN FLORISTRY: Court Extends Use of Cash Collateral to Jan. 8 D. RUSSELL: Starts Subchapter V Bankruptcy Proceeding DIA INVESTMENT: Seeks Approval to Hire Silverman Law as Counsel DIAMOND SPORTS: Emerges from Chapter 11 as Main Street Sports Group DISCOVERY HILL: Court Okays Sale of Certain Properties for $3.3MM DNJ BLESSED: Seeks to Hire Calaiaro Valencik as Legal Counsel ECHOSTAR CORP: James DeFranco Quits From Unit's Board of Directors EIGHT50 HOLDINGS: Seeks Chapter 11 Bankruptcy Protection EIGHT50 HOLDINGS: Voluntary Chapter 11 Case Summary EMCORE CORP: Delays Filing of 2024 Annual Report ENSERVCO CORP: Incurs $2.20 Million Net Loss in Third Quarter ESTUARY OYSTERS: Claims to be Paid From Asset Sale Proceeds EYENOVIA INC: Amends Sales Pact to Appoint Chardan as Sales Agent FAMILY SOLUTIONS: Hires Waldrep Wall Babcock as Special Counsel FINGER LAKE: Seeks Bankruptcy Protection in New York FIRST MODE: Unsecureds Will Get 100% of Claims in Joint Plan FLORIDA MONSTER: Seeks Chapter 11 Bankruptcy Protection FLYWHEEL ADVANCED: Delays Filing of Fiscal 2024 Annual Report FRESHQUITA BRANDS: Files Chapter 7 Bankruptcy in Texas FTX TRADING: Celsius Network Appeals $444-Mil. Claims Rejection GARUDA HOTELS: Trustee Taps Pyramid Brokerage as Real Estate Broker GAVIN SPANIERMAN: Starts Subchapter V Bankruptcy Proceeding GENEVER HOLDINGS: Trustee Taps Kobre & Kim as Special Counsel GUIDED THERAPEUTICS: Raises $535K Through Stock & Warrants Offering GULFSLOPE ENERGY: Delays Filing of Fiscal 2024 Annual Report GUNNISON VALLEY: Seeks to Extend Plan Exclusivity to March 26, 2025 HARBORVIEW REHABILITATION: Case Summary & Top Unsecured Creditors HARBORVIEW REHABILITATION: Starts Subchapter V Bankruptcy Process HARE TAYLOR: Seeks Cash Collateral Access HEALTHCARE HOLDINGS: Taps B. Riley Advisory as Financial Advisor HERTZ CORP: Avoids $337-Mil. Bond Obligation HIGH HEELS: Files Chapter 11 Bankruptcy in Illinois HILLLCREST CENTER: Seeks to Use Cash Collateral HULKZ CONSTRUCTION: Unsecureds to be Paid in Full in Plan HYPHA LABS: Delays Filing of Fiscal 2024 Annual Report IGNITE OPTICS: Gets Interim OK to Use Cash Collateral Until Jan. 31 INSTITUTE OF ISLAMIC: Seeks Chapter 11 Bankruptcy Protection INTER PIPELINE: DBRS Finalizes BB Rating on $450MM 2024-A Notes IRECERTIFY LLC: Asks Court to OK Prior Use of Cash Collateral IRWIN NATURALS: Unsecureds to Get Share of Disposable Income IVF ORLANDO: Gets Interim OK to Use Cash Collateral Until Feb. 19 J.A.R. CONCRETE: Court Rules on CRRMMA Wrongful Default Claim JLM COUTURE: Court Rules on JLJ's Administrative Expense Claims JMKA LLC: Case Summary & 13 Unsecured Creditors JMKA LLC: Files Chapter 11 Bankruptcy Protection in Illinois JUNK SHUTTLE: Gets Interim OK to Use Cash Collateral KB DEVELOPMENT: Hires Desai Law Firm LLC as Counsel KESTESPRESSO LLC: Hires Abelson Law Offices as Bankruptcy Counsel KSN EXPRESS: Commences Subchapter V Bankruptcy Proceeding LA PLAZA MEXICO: Voluntary Chapter 11 Case Summary LA PLAZA: Commences Subchapter V Bankruptcy Proceeding LAW OFFICE OF JESSICA: Seeks to Use Cash Collateral LEFEVER MATTSON: Court Approves Deal to Use Cash Collateral LION ELECTRIC: Reduces Workforce Amid CCAA Restructuring LITTLE MINT: Seeks Bankruptcy Protection in North Carolina LITTLE MINT: Seeks to Use Cash Collateral LONERO ENGINEERING: Files Chapter 11 Bankruptcy Protection LTL MGT: Houlihan Lokey's $1.75MM Fee Affirmed in Chapter 11 Case LUMIO HOLDINGS: Court Rejects Ch.11 Plan Opt-Out Releases LUMIO HOLDINGS: Defends Chapter 11 Plan Releases M & M BUCKLEY: Seeks Cash Collateral Access Until Jan. 31 MARTINS INTERSTATE: To Sell Edgewater Property for $2.1-Mil. MARYLAND PROTON: Defaults on $267-Mil. Municipal Bonds MAXITO REALTY: Sec. 341(a) Meeting of Creditors on February 3 MAXITO REALTY: Voluntary Chapter 11 Case Summary METRO MATTRESS: Seeks to Extend Plan Exclusivity to May 2, 2025 MIDWEST MOBILE: Case Summary & 20 Largest Unsecured Creditors MILFORD CRAFT: Emerges from Chapter 11 Bankruptcy MIRACLE LEAF: Seeks to Hire Sardi Law PLLC as Bankruptcy Counsel MISTER SUBS: Files Chapter 11 Bankruptcy in New York MY SISTERS: Hires Jeffrey J. McCue & Company as Accountant N.C. 17-19: Seeks to Hire James J. Rufo as Attorney NEWS DIRECT: Case Summary & 20 Largest Unsecured Creditors NUMBER HOLDINGS: Unsecureds Will Get 0.5% to 2.0% in Plan NW CUSTOM AIRCRAFT: Taps Karr Tuttle Campbell as Legal Counsel ONDAS HOLDING: Issues $18.9 Million in 3% Series B-2 Senior Notes OPEN ARMS: Seeks to Hire Isaac Wiles & Burkholder as Counsel ORCHARD PARK: Updates Unsecureds & Secured Claims Pay Details PAC BUILD: Small Business Debtor's Plan of Reorganization Confirmed PARTY CITY: A&G Plans to Auction 695 Store Leases PARTY CITY: Leases of 695 Stores to be Auctioned in February PARTY CITY: To Close Springfield Location as Part of Chapter 11 PERIMETER FOODS: Royalty Payments to Fund Plan PIER 1 IMPORTS: Court Affirms Denial of GDI's Rule 60 Motion PINNACLE FOODS: Loses Bid to Assume PLK's Franchise Agreements PREMIER CHILDCARE: Commences Subchapter V Bankruptcy Proceeding PREMIER HOSPITALITY: Unsecureds Will Get 5% of Claims in Plan PRIME CAPITAL: Creditors to Get Proceeds From Liquidation PRIME ELECTRICAL: Gets OK to Use Cash Collateral Until Jan. 16 PUERTO RICO: PREPA Bondholders Defend Rights Amid Bankruptcy RAA RESTAURANT: Sec. 341(a) Meeting of Creditors on February 3 RAMIN POURTEYMOUR: FFB's Attorney Protected by Anti-Slapp Statute RAVI GI ASSOCIATES: Case Summary & 19 Unsecured Creditors RAVI GI: Seeks Bankruptcy Protection in Pennsylvania RED RIVER: Committee Hires Mckool Smith as Special Counsel RELIABLE ENERGY: Hires MoneySaver Tax Professionals as Bookkeeper SARVER REALTY: Case Summary & Four Unsecured Creditors SARVER REALTY: Seeks Bankruptcy Protection in Pennsylvania SEATON INVESTMENTS: Hires Soffer Law as Special Probate Counsel SERTA SIMMONS: HSG Represents LCM Entities in Debt Dispute SHINECO INC: Signs $32.7 Million SPA With 9 Non-U.S. Investors SINGLEPOINT INC: Widens Net Loss to $4.51 Million in Third Quarter SMILEDIRECTCLUB: Katzman, et al v. Scott+Scott Case Stayed SOLAR BIOTECH: Hires Epiq Corporate as Administrative Advisor SOUTHERN TIER: Patients Frustrated on Sudden Bankruptcy Declaration SPECIAL EFFECTS: Seeks Bankruptcy Protection in California STAR WELLINGTON: Court OKs Interim Use of Cash Collateral STATEN ISLAND JEWISH: Unsecureds Will Get 15% over 60 Months STRATIGOS DYNAMICS: Plans to File Bankruptcy Protection SUBSTATION SERVICES: Taps Elite Accounting Solutions as Accountant SUIRAD GROUP: Case Summary & Four Unsecured Creditors SUIRAD GROUP: Commences Subchapter V Bankruptcy Process SUPERIOR PLUS: DBRS Confirms BB(high) Issuer Rating TEMADA INC: Seeks to Hire David W. Langley as Bankruptcy Counsel TERRAFORM LABS: Founder Do Kwon Denies $40 Billion Crypto Fraud TEXAS SOLAR: Hires South Texas Business as Special Counsel TGI FRIDAY'S: Committee Hires Province LLC as Financial Advisor TGI FRIDAY'S: Former CEO to Oversee Locations Post Chap. 11 THOMAS ROOFING: Gets Interim OK to Use Cash Collateral Until Feb. 6 TOWER PARK: Court Affirms Dismissal of FTIC Adversary Case TROPHY CUPCAKES: Gets Final OK to Use Cash Collateral Until June 30 TRUCK LITE: Oaktree Strategic Marks $143,000 Loan at 52% Off TRUSTED HEATING: Gets Interim OK to Use Cash Collateral TW MEDICAL: Hires King & Spalding LLP as Special Counsel VBI VACCINES: Completes Sale to K2 HealthVentures VELSICOL CHEMICAL: Hires Hollingsworth LLP as Special Counsel VERTEX ENERGY: Bankruptcy Court Confirms 2nd Amended Chap. 11 Plan VH NUTRITION: Case Summary & 15 Unsecured Creditors VH NUTRITION: Commences Subchapter V Bankruptcy Process WELLPATH HOLDINGS: Committee Taps Proskauer Rose as Co-Counsel WELLPATH HOLDINGS: Stay in Ryan v. State of Michigan Case Lifted WINESTEAD LLC: Seeks Continued Use of Cash Collateral Until June 30 WINTA ASSET: Seeks to Sell New York Property for $20-Mil. WISA TECHNOLOGIES: Signs Agreement to Acquire CompuSystems, Inc. YOUNG MEN'S CHRISTIAN: Unsecureds Will Get 100% over 24 Months [*] Commercial Chapter 11 Filings Up 20% in Calendar Year 2024 [*] Companies' Default Rates Hit Record Highs in 2024 [*] Famous Retail Chains That Closed Stores in Sacramento in 2024 [*] Greenberg Expands London Restructuring, Arbitration Practices [*] U.S. Biggest Bankruptcies in 2024 [] Tony Grant Joins A&G as Senior Managing Director ********* 11AM INDUSTRIES: Gets OK to Use Cash Collateral Until Jan. 17 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Ohio, Eastern Division, issued an interim order authorizing 11AM Industries, LLC to use cash collateral through Jan. 17. The company was authorized to use cash collateral for business expenses, including payroll, utilities, taxes and lease payments in accordance with its court-approved budget. The budget projects monthly expenses of $53,811 for January, $43,867 for February, and $42,928 for March. 11AM Industries was authorized to provide adequate protection to secured creditors, including the U.S. Small Business Administration and merchant cash advance creditors, in the form of payments and replacement liens. The replacement liens will have the same validity, priority and extent as the pre-bankruptcy liens held by the secured creditors. The final hearing is scheduled for Jan. 14. Objections must be filed by Jan. 13. About 11AM Industries LLC 11AM Industries LLC, operating under the trade names Zoogari Pets and Shop11AM, is a pet supply retailer based in Norton, Ohio. The company operates from its principal location at 4409 Cleveland-Massillon Road. 11AM Industries sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ohio Case No. 24-52038) on December 29, 2024. In its petition, the Debtor reported estimated assets between $50,000 and $100,000 and estimated liabilities between $500,000 and $1 million. Judge Alan M. Koschik handles the case. The Debtor is represented by: Steven Heimberger, Esq. Roderick Linton Belfance, LLP 50 South Main Street, 10th Floor Akron, OH 44308 Phone: 330-434-3000 Fax: 330-434-9220 14813 DRAFT HORSE: Taps Rappaport Osborne & Rappaport as Attorney ----------------------------------------------------------------- 14813 Draft Horse Lane LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire Rappaport Osborne & Rappaport, PLLC, as its attorney. The firm will render these services: (a) give advice to the Debtor with respect to its powers and duties as a debtor-in-possession; (b) advise the Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; (c) prepare motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the administration of the case; (d) protect the interest of the Debtor in all matters pending before the court; and (e) represent the Debtor in negotiation with its creditors in the preparation of a plan. Rappaport Osborne will be paid at these hourly rates: Jordan L. Rappaport $550 Les Osborne $550 Paralegals $100 to $350 In addition, Rappaport Osborne will be reimbursed for reasonable out-of-pocket expenses incurred. Rappaport Osborne is holding a retainer in the amount of $14,500, in Trust and expects to receive additional post-petition retainer amounts of $17,238. Jordan L. Rappaport, a partner of Rappaport Osborne, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Rappaport Osborne can be reached at: Jordan L. Rappaport, Esq. RAPPAPORT OSBORNE & RAPPAPORT, PLLC 1300 North Federal Highway, Suite 203 Boca Raton, FL 33432 Tel: (561) 368-2200 About 14813 Draft Horse Lane LLC 14813 Draft Horse Lane LLC is a limited liability company. 14813 Draft Horse Lane LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-22829) on December 9, 2024. In the petition filed by Mordechay Maximoff, as manager, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Mindy A. Mora handles the case. The Debtor is represented by Jordan L. Rappaport, Esq. at RAPPAPORT OSBORNE & RAPPAPORT, PLLC. 1851 WARREN: Seeks Chapter 11 Bankruptcy Protection --------------------------------------------------- On January 3, 2025, 1851 Warren Way LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Georgia. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 1851 Warren Way LLC 1851 Warren Way LLC is a Georgia-based real estate company operating in Fulton County. 1851 Warren Way LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50062) on January 3, 2025 In its petition, the Debtor reports estimated assets and liabilities between $500,000 and $1 million. 2446 ENCINAL: Files Chapter 11 Bankruptcy in Texas -------------------------------------------------- On December 31, 2024, 2446 Encinal Development LP filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Texas. According to court filing, the Debtor reports $1,559,793 in debtowed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 2446 Encinal Development LP 2446 Encinal Development LP is the fee simple owner of the Z real property located at 600 Berry St., Encinal, TX 78019 having a revenue-based valuation of $1.3 million. 2446 Encinal Development LP sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-52689) on December 31, 2024. In its petition, the Debtor reports total assets of $1,303,239 and total liabilities of $1,559,793. The Debtor is represented by: William B. Kingman, Esq. LAW OFFICES OF WILLIAM B. KINGMAN 3511 Broadway San Antonio, TX 78209 Tel: (210) 829-1199 Email: bkingman@kingmanlaw.com 68 WAINSCOTT: Case Summary & One Unsecured Creditor --------------------------------------------------- Debtor: 68 Wainscott LLC 303 E 60th St, Apt. 6B New York, NY 10022 Chapter 11 Petition Date: January 3, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-70034 Judge: Hon. Robert E Grossman, Esq. Debtor's Counsel: Btzalel Hirchhorn, Esq. SHIRYAK, BOWMAN, ANDERSON, GILL & KADOCHNIKOV, LLP 80-02 Kew Gardens Road, Suite 600 Kew Gardens, NY 11415 Tel: 718-263-6800 Fax: 718-520-9401 E-mail: Bhirschhorn@sbagk.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Barbara Kavovit as managing member. The Debtor listed Deutsche Bank located at 1761 E St Andrew Pl, Santa Ana, CA as its sole unsecured creditor holding a claim of $414,437. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/4JV5NEQ/68_Wainscott_LLC__nyebke-25-70034__0001.0.pdf?mcid=tGE4TAMA A.M. ARTEAGA: Seeks to Hire Thomas E. Brookhouzen as Accountant --------------------------------------------------------------- A.M. Arteaga, DDS, Inc. seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Thomas E Brookhouzen, an IRS registered tax preparer in Diamond Bar, California, as its accountant. Mr. Brookhouzen will provide the accounting services required by the Debtor. He Brookhouzen will charge $190 per hour for his services. Mr. Brookhouzen assured the court that he is a "disinterested person" within the meaning of 11 U.S.C. 101(14). Mr. Brookhouzen can be reached at: Thomas E Brookhouzen, EA 514 B North Diamond Bar Blvd Diamond Bar, CA 91765 Phone: (909) 861-5300 About A.M. Arteaga DDS Inc. A.M. Arteaga DDS Inc. is primarily engaged in the private or group practice of general or specialized dentistry or dental surgery. A.M. Arteaga DDS Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-16442) on October 28, 2024. In the petition filed by Anamaria Arteaga, chief executive officer, the Debtor disclosed estimated assets between $50,000 and $100,000 and estimated liabilities between $1 million and $10 million. Judge Scott H. Yun oversees the case. Lewis R. Landau, Esq., serves as the Debtor's counsel. AFTERSHOCK COMICS: Hires Restructuring as Restructuring Advisor --------------------------------------------------------------- Aftershock Comics, LLC and its affiliate seek approval from the U.S. Bankruptcy Court for the Central District of California to employ Restructuring Solutions, LLC and designate Michael Ozawa as restructuring advisor. The firm will provide these services: a. analyze the Debtors' financial and other pertinent information, and determine: (1) what is necessary to respond to information requested by, and (2) the frequency of, and the manner in which the Debtors report financial information to, among other parties, ARC, the Committees, creditors, and other interested parties; b. create and/or oversee the weekly and monthly reporting of financial and transactional information, including: (a) cash inflows and outflows and cash balances; (b) comparison of monthly forecast to actual cash activity, with narratives for large variances; and (c) monthly financial statements, with AR aging, AP aging, debt schedules (roll forward Emergence Date debts, new financing and any covenants, etc.); c. update and flash reports on: (a) transaction activity in the distribution of television programming, and updates on target markets; (b) status of projects in development, including expected revenues and costs (costs incurred + costs to complete); and (c) licensing of intellectual property; d. oversee the creation of a database of all titles, historic revenues, costs, territories, relevant periods to calculate return on invested capital, etc.; e. develop an overview of the business to assist in the underwriting process; f. take such other steps as are necessary to manage and restructure the affairs of the Debtors; and e. perform any other tasks which the Debtors requests and which Restructuring Solutions agrees to perform. The firm will be paid at these rates: Managing Directors & Partners $495 to $695 per hour Senior Advisors / Directors $350 to $495 per hour Principal Consultants $295 to $350 per hour Consultants / Senior Analysts $225 to $295 per hour Para Professionals / Analysts $175 to $225 per hour Administrative Staff $75 to $100 per hour The firm will be paid at a monthly flat fee of $10,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Michael Ozawa, a Managing Principal at Restructuring Solutions, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Michael Ozawa Restructuring Solutions, LLC 904 Silver Spur Road #237, Rolling Hills Estates, CA 90274 Telephone: (213) 705-9339 Email: michael@RestructuringSolutionsLLC.com About Aftershock Comics, LLC AfterShock Comics, LLC -- https://Aftershockcomics.com -- is an American comic book publisher launched in 2015. The company is based in Sherman Oaks, Calif. AfterShock Comics and affiliate Rive Gauche Television filed petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Lead Case No. 22-11456) on Dec. 19, 2022. Judge Martin R. Barash oversees the cases. At the time of filing, AfterShock Comics reported $10 million to $50 million in both assets and liabilities while Rive Gauche reported $50 million to $100 million in assets and $10 million to $50 million in liabilities. The Debtors are represented by David L. Neale, Esq., at Levene, Neale, Bender, Yoo & Golubchik L.L.P. The U.S. Trustee for Region 16 appointed two separate committees to represent unsecured creditors in the Chapter 11 cases of AfterShockComics, LLC and Rive Gauche Television. AGAVE BUILDERS: Files Chapter 7 Bankruptcy w/ Over $2.2-Mil. Debt ----------------------------------------------------------------- Ben van der Meer of Sacramento Business Journal reports that Agave Builders LLC, operating as Agave Construction in Elk Grove, has filed for Chapter 7 bankruptcy following numerous lawsuits, including one from the California Attorney General's Office. The company filed its petition on December 26, 2024 in the U.S. Bankruptcy Court for the Eastern District of California, reporting assets of $2,000 and liabilities exceeding $2.2 million, the report says. According to Sacramento Business Journal, the filing highlights eight lawsuits naming Agave and its managing member and president, Hector Manuel Romo, as defendants. Most cases allege breach of contract over disputed projects and investments. These cases are currently pending in Sacramento, Placer, Marin, and Tulare counties. The largest claim, totaling $1.03 million, stems from a 2022 lawsuit filed by Gilad Abizdris and ADI Property LLC in Sacramento County Superior Court. The case involves three disputes: unpaid loans for housing developments in Sacramento County, and claims of substandard construction work at a commercial property on Folsom Blvd, the report states. The Folsom Blvd. project, intended for Pucci's Pharmacy, was slated for completion in November 2020 but faced delays and quality concerns, remaining unfinished a year later. The lawsuit also cites substandard construction on a planned single-family home at 2960 Northrop Ave. in Arden-Arcade. Karen Goodman, the attorney representing Abizdris and ADI, expressed frustration over the bankruptcy filing. "While they're within their rights to file, it's unfortunate my client got caught in this situation," Goodman said. She is assessing Agave's remaining assets and considering further legal options, as the $1.03 million claim is listed as unsecured, the report cites. Agave Builders is also under scrutiny from the California Attorney General's Office, representing the Contractors State License Board (CSLB). Although details of the case remain unclear, the CSLB revoked the company's contractor's license in December, citing five complaints against the firm, according to the board's website, according to report. Attempts to contact Agave Construction through its listed phone number were unsuccessful, and the company's attorney, D. Randall Ensminger, did not return calls made to his Lincoln office. About Agave Builders LLC Agave Builders LLC, operating as Agave Construction in Elk Grove, is a general contractor specializing in custom home construction and remodeling. Agave Builders LLC sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 24-25786) on December 26, 2024. Honorable Bankruptcy Judge Christopher M. Klein handles the case. D. Randall Ensminger, Esq. represents the Debtor as counsel. AKOUSTIS TECHNOLOGIES: Foe Seeks Delay of Bidding Protocol Approval ------------------------------------------------------------------- Emily Lever of Law360 Bankruptcy Authority reports that a company that won a $39 million intellectual property judgment against the bankrupt Akoustis Technologies, a radio frequency filter maker, has asked a Delaware bankruptcy court to delay consideration of Akoustis's bidding procedures. According to the report, the company claims the procedures are intended to disrupt the resolution of the IP case. About Akoustis Technologies Akoustis Technologies, Inc. -- http://www.akoustis.com/-- is a high-tech BAW RF filter solutions company that is pioneering next-generation materials science and MEMS wafer manufacturing to address the market requirements for improved RF filters -- targeting higher bandwidth, higher operating frequencies and higher output power compared to legacy polycrystalline BAW technology. The Company utilizes its proprietary and patented XBAW(R) manufacturing process to produce bulk acoustic wave RF filters for mobile and other wireless markets, which facilitate signal acquisition and accelerate band performance between the antenna and digital back end. Superior performance is driven by the significant advances of poly-crystal, single-crystal, and other high purity piezoelectric materials and the resonator-filter process technology which enables optimal trade-offs between critical power, frequency and bandwidth performance specifications. Akoustis owns and operates a 125,000 sq. ft. ISO-9001:2015 registered commercial wafer-manufacturing facility located in Canandaigua, NY, which includes a class 100 / class 1000 cleanroom facility -- tooled for 150-mm diameter wafers -- for the design, development, fabrication and packaging of RF filters, MEMS and other semiconductor devices. Akoustis is headquartered in the Piedmont technology corridor near Charlotte, North Carolina. Akoustis and three affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 24-12796) on Dec. 16, 2024. The Hon. Laurie Selber Silverstein is the case judge. The Debtor disclosed $53,371,000 in total assets against $122,586,000 in total debt as of Sept. 30, 2024. K&L Gates LLP is serving as legal counsel, Raymond James & Associates, Inc. is serving as investment banker, Getzler Henrich & Associates LLC is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor. Landis Rath & Cobb LLP is the local counsel. Stretto is the claims agent and has launched the page https://cases.stretto.com/Akoustis. ALL INCLUSIVE: Files Emergency Bid to Use Cash Collateral --------------------------------------------------------- All Inclusive 4DL, LLC asked the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, for authority to use cash collateral. The company requested emergency consideration because it depends on the use of cash collateral for payroll, supplies, and other general operating expenses. All Inclusive 4DL has 12 employees paid on a bi-weekly basis. In addition to payroll, the company's primary expenses include monthly rent, food products, materials, supplies, utilities and insurance. Payroll for the next pay date of Jan. 10 will be around $6,500, which includes payroll tax expenses. Global Financial & Leasing Services, Lendini/Funding Metrics, and Shore Funding/Forward Financing LLC may assert an interest in the cash collateral. All Inclusive 4DL proposed that the secured creditors be granted a replacement lien on all proceeds of receivables after payment of its post-petition expenses, to the extent acquired after the petition date and if it is determined that the secured creditors have a valid security interest in the pre-bankruptcy receivables and proceeds. About All Inclusive 4DL All Inclusive 4DL, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 24-36024) on December 24, 2024, with $50,000 to $100,000 in assets and $100,000 to $500,000 in liabilities. Judge Eduardo V. Rodriguez handles the case. The Debtor is represented by Aaron W. McCardell, Sr., Esq. at the McCardell Law Firm, PLLC. ALL SAFE: Seeks Chapter 11 Bankruptcy Protection in New York ------------------------------------------------------------ On January 3, 2025, All Safe Fire Sprinkler Systems Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About All Safe Fire Sprinkler Systems Inc. All Safe Fire Sprinkler Systems Inc. is based in Elmsford, New York and operates as a fire sprinkler systems installation and maintenance provider. All Safe Fire Sprinkler Systems Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22004) on January 3, 2025 In its petition, the Debtor reports estimated assets and liabilities between $500,000 and $1 million each. Honorable Bankruptcy Judge Sean H. Lane handles the case. Dawn Kirby, Esq. of Kirby Aisner & Curley, LLP represents the Debtor as counsel. ALL STAR TRUCKING: Hires Neeleman Law Group as Legal Counsel ------------------------------------------------------------ All Star Trucking, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Washington to employ Neeleman Law Group as legal counsel. The firm's services include: a. assisting the Debtor in the investigation of the financial affairs of the estate; b. providing legal advice and assistance to the Debtor with respect to matters relating to this case and creditor distribution; c. preparing all pleadings necessary for proceedings arising under this case; and d. performing all necessary legal services for the estate in relation to this case. The firm will be paid at these rates: Principal $550 per hour Associate $475 per hour Paralegal $225 per hour Neeleman Law Group received a retainer in the amount of $16,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Jennifer L. Neeleman, Esq., a partner at Neeleman Law Group, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Jennifer L. Neeleman, Esq. Neeleman Law Group 1403 8th Street Marysville, WA 98270 Tel: (425) 212-4800 Fax: (425) 212-4802 Email: jennifer@neelemanlaw.com About All Star Trucking, LLC All Star Trucking, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-12934-TWD) on November 15, 2024. In the petition signed by Ishwar Aery, managing member, the Debtor disclosed up to $500,000 in assets and up to $1 million in liabilities. Thomas D. Neeleman, Esq., at Neeleman Law Group, P.C., represents the Debtor as legal counsel. ALRACHID LLC: Unsecureds Will Get 19% of Claims in Plan ------------------------------------------------------- Alrachid, LLC, filed with the U.S. Bankruptcy Court for the Northern District of Ohio a Plan of Reorganization under Subchapter V dated December 20, 2024. The Debtor owns and operates a restaurant as a franchisee of Sittoo's Systems LLC ("Sittoo's") and does business as Sittoo's Lebanese Grill at 24930 Lorain Rd, North Olmstead Ohio. The Debtor was founded in 2014, and Mr. Tony Soueid is its sole member and its president. The Debtor has been funded by a combination of supplier credit, a business loan with Headway Capital, five so-called "merchant cash advance" ("MCA") companies, and a loan with Ford Motor Credit for a pickup truck. The Debtor's attempts to finance its return to its normal level of operation with loans from the MCA Lenders caused excessive demands on its existing cash. The attempts of certain MCA Lenders to seize the Debtor's accounts receivable led to the filing of this bankruptcy case. The Debtor's financial projections prepared by the Debtor and its accountant show that the Debtor will have total projected disposable income of $120,356.94 (the "Projected Disposable Income"). The final Plan payment is expected to be paid 48 months after the initial Distribution Date of this Plan or when all Claims have been Allowed. This Plan of Reorganization under chapter 11 of the Bankruptcy Code proposes to pay creditors of the Debtor from the future actual disposable income of the Reorganized Debtor. Creditors holding Allowed Claims in Classes 1, 2 and 3 will receive Distributions which the Debtor has estimated to be approximately 100 cents on the dollar during the term of this Plan. Classes 4 will also receive approximately 19% if all of their Allowed Claims are Allowed as filed, and substantially greater if some claims are disallowed. This Plan provides for full payment of administrative expenses and priority claims. Class 4 consists of the Allowed Unsecured Claims, including the Allowed Unsecured Claims of Alternative, Avanza, Essential, FBF, Headway and Lazarus. Based on filed and scheduled claims there are potentially 11 holders of Allowed Unsecured Claims who may have approximately $404,681.51 in Unsecured Claims in this class. This amount is not a statement by the Debtor that this amount will ultimately be the amount of Allowed Claims in this Class, as the Debtor reserves all rights and objections to any Claim in this Class. Allowed Claims in this class shall receive a pro rata share of the Debtor's actual Disposable Income from the Reorganized Debtor commencing on first business day that is 30 days after the last business day of the year in which the payment of Administrative Expenses provided for in this Plan, and Class 1 is paid in full occurs. Allowed Claims in this class will receive an annual pro rata Distribution from the Reorganized Debtor and in each calendar year thereafter until paid in full or the Plan reaches 3 years from the initial Distribution Date. No interest shall accrue on any Claims in this Class. Class 6 consists of the outstanding membership interests issued by the Debtor, all of which are owned by Tony Soueid. Confirmation of this Plan shall cause all prepetition membership interests issued by the Debtor to be revested in and retained Mr. Soueid as of the Petition Date and shall subject to and based upon the terms and conditions as they existed on the Petition Date including under any Articles of Incorporation, By-Laws, and other duly executed corporate documents. The Plan will be primarily implemented and funded through the future business operations of the Reorganized Debtor during the Plan Term. Recoveries from the Avoidance Actions, if any may be used to fund distributions under the Plan. As a part of its reorganization, the Debtor does not contemplate the sale of any assets, however assets may be sold to the extent that it is later determined they are no longer of value to the Reorganized Debtor's business operation or their useful life for the Reorganized Debtor has expired. A full-text copy of the Plan of Reorganization dated December 20, 2024 is available at https://urlcurt.com/u?l=yI5ANV from PacerMonitor.com at no charge. About Alrachid, LLC Alrachid LLC owns and operates a restaurant as a franchisee of Sittoo's Systems LLC and does business as Sittoo's Lebanese Grill at 24930 Lorain Rd, North Olmstead Ohio. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-12309) on June 11, 2024, with $100,001 to $500,000 in both assets and liabilities. Judge Suzana Krstevski Koch presides over the case. Frederic P. Schwieg, Esq., is the Debtor's legal counsel. AMERICAN TIRE: Seeks to Hire PricewaterhouseCoopers LLP as Auditor ------------------------------------------------------------------ American Tire Distributors Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to hire PricewaterhouseCoopers LLP as their auditor. The firm will render these services: a. PwC LLP will audit the consolidated financial statements of ATD New Holdings, Inc., which comprise the consolidated balance sheet as of December 28, 2024 and related consolidated statements of comprehensive income (loss), of shareholders' equity, and of cash flows for the year then ending. Upon completion of the audit, PwC LLP will provide ATD New Holdings with PwC LLP's written audit report on the financial statements referred to above. Circumstances may arise in which PwC LLP's report may differ from its expected form and content based on the results of PwC LLP's audit. Depending on the nature of these circumstances, it may be necessary for PwC LLP to modify its opinion or add an emphasis-of-matter paragraph or other matter paragraph to PwC LLP's audit report. If for any reason relating to the affairs or management of ATD New Holdings, PwC LLP is unable to complete its audit, PwC LLP may decline to issue a report as a result of this engagement. As part of the engagement and as is customary in PwC LLP's role as auditor, PwC LLP may provide various types of insights-whether oral, written, or visual. b. Additional incremental audit services, to the extent performed, that were not within the original scope of the engagement but are deemed related to the audit services by the Debtors. Such incremental audit services might include: incremental audit procedures related to adopting ASC 852, Reorganizations as a result of ATD New Holdings' bankruptcy proceedings, providing general accounting advice around accounting while in bankruptcy and the adoption of fresh start accounting, if applicable, capital markets transactions, liquidity assessments, or other technical accounting matters involving consultation and trigger-based impairment assessments. The firm will be compensated as follows: a. The audit engagement is a fixed fee arrangement, exclusive of expenses, whereby PwC LLP has agreed to be paid a total of $950,0004 (the "Fixed Fee"). b. The incremental audit services would be provided under an hourly fee arrangement. The hourly rates, exclusive of expenses, are: Specialists (CMAAS, Valuation and National Office) Staff Class Rate per hour Rate per hour (CMAAS) (Valuation) Partner $1,270 $1,270 Managing Director $1,199 $1,142 Director $1,086 $1,039 Senior Manager $961 $917 Manager $842 $796 Senior $693 $663 Associate $499 $559 Core Audit Team Staff Class Rate per hour Rate per hour (Assurance) (Tax) Partner $876 $916 Managing Director $689 $781 Director $501 $696 Senior Manager $409 $664 Manager $369 $600 Senior $286 $508 Associate $195 $401 c. Prepetition, PwC LLP received $315,000 for services completed prepetition, $80,000 of which was on account of prepetition prepayments, and $635,000 of the Fixed Fee remains to be invoiced in approved postpetition fees. In the 90 days prior to the Petition Date, PwC LLP was paid $250,000 of which $80,000 was on account of prepetition prepayments and $170,000 was for non-prepayment payments on account of prepetition services performed for the Debtors. Clint Maddox, a partner of PricewaterhouseCoopers LLP, assured the court that his firm is a "disinterested person" within the meaning of 11 U.S.C. 101(14). The firm can be reached through: Clint Maddox PricewaterhouseCoopers LLP 214 North Tryon Street, Suite 4200 Charlotte, NC 28202 Tel: (704) 344 7500 About American Tire Distributors Headquartered in Huntersville, N.C., American Tire Distributors Inc. and its affiliates are the largest distributor of replacement tires in North America based on dollar amount of wholesale sales. With their network of over 115 distribution centers and 1,500 delivery vehicles, the Debtors service a geographic region covering more than 90 percent of the replacement tire market for passenger vehicles and light trucks in the United States. The Debtors carry many of the nation's leading tire brands including Michelin, Pirelli, and Continental. In addition, the Debtors' proprietary Hercules brand is a leading private tire brand in North America. American Tire Distributors and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12391) on October 22, 2024. In its petition, American Tire Distributors reported $1 billion to $10 billion in both assets and liabilities. Judge Craig T. Goldblatt oversees the cases. The Debtors tapped Kirkland & Ellis as bankruptcy counsel; Pachulski Stang Ziehl & Jones, LLP as Delaware counsel; AP Services, LLC as restructuring advisor; and Moelis & Company, LLC as financial advisor. Donlin, Recano & Company, Inc. is the notice and claims agent and administrative advisor. ARTEAGA DENTAL: Seeks to Hire Thomas E. Brookhouzen as Accountant ----------------------------------------------------------------- Arteaga Dental Corporation seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Thomas E. Brookhouzen, an IRS registered tax preparer in Diamond Bar, California, as its accountant. Mr. Brookhouzen will provide the accounting services required by the Debtor. He will charge $190 per hour for his services. Mr. Brookhouzen assured the court that he is a "disinterested person" within the meaning of 11 U.S.C. 101(14). Mr. Brookhouzen can be reached at: Thomas E Brookhouzen, EA 514 B North Diamond Bar Blvd Diamond Bar, CA 91765 Phone: (909) 861-5300 About Arteaga Dental Corporation Arteaga Dental Corporation is primarily engaged in the private or group practice of general or specialized dentistry or dental surgery. Arteaga Dental Corporation sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-16441) on October 28, 2024. In the petition filed by Anamaria Arteaga, chief executive officer, the Debtor disclosed up to $100,000 in assets and up to $10 million in liabilities. Judge Wayne E. Johnson oversees the case. Lewis R. Landau, Esq., serves as the Debtor's counsel. ARTERA SERVICES: 90% Markdown for Oaktree Strategic $27.3MM Loan ---------------------------------------------------------------- Oaktree Strategic Credit Fund has marked its $27,363,000 loan extended to Artera Services, LLC to market at $2,674,000 or 10% of the outstanding amount, according to a disclosure contained in Oaktree Strategic's Form 10-K for the Quarterly Period Ended September 30, 2024, filed with the Securities and Exchange Commission. Oaktree Strategic is a participant in a First Lien Term Loan (SOFR + 4.50%) to Artera Services, LLC. The loan accrues interest at a rate of 9.10% Payment in Kind per annum. The loan matures on February 15, 2031. Oaktree Strategic is a specialty finance company with a focus on and a goal of providing financing solutions to high-growth, innovative venture capital-backed and institutional-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries. Hercules is a Maryland corporation formed in December 2003 that began investment operations in September 2004. On February 25, 2016, Hercules changed its name from Hercules Technology Growth Capital, Inc to Hercules Capital, Inc. Oaktree Strategic is led by Armen Panossian, Chairman, Chief Executive Officer and Co-Chief Investment Officer; and Christopher McKown, Chief Financial Officer and Treasurer. The fund can be reach through: Armen Panossian Oaktree Strategic Credit Fund 333 South Grand Avenue, 28th Floor Los Angeles, CA, 90071 Tel: (213) 830-6300 Artera Services, LLC provides utility line construction services. The Company offers installation, repair, and maintenance of gas and electric distribution lines, as well as civil excavation, feasibility studies, horizontal directional drilling, and pollution prevention planning services. ASSURE UNDERWRITING: Court Affirms Judgment in Cadence Bank Case ---------------------------------------------------------------- Judges Page McClendon, Jewel E. Welch and Walter Lanier, III of the State of Louisiana Court of Appeal First Circuit affirmed the judgment of the Nineteenth Judicial District Court Parish of East Baton Rouge that sustained the peremptory exception of Billy Bostick, in his capacity as receiver for Assurance Holding Corporation, Assure Underwriting Agency, and American Insurance Company, raising the objection of no cause of action in the consolidated cases captioned as JAMES J. DONELON, COMMISSIONER OF INSURANCE FOR THE STATE OF LOUISIANA VERSUS AMERICAS INSURANCE COMPANY, No. 2024 CA 0422 (La. Ct. App.), CADENCE BANK VERSUS BILLY BOSTICK, IN HIS CAPACITY AS RECEIVER BANK FOR ASSURANCE HOLDING CORPORATION, ASSURE UNDERWRITING AGENCY, AND AMERICAN INSURANCE COMPANY, No. 2024 CA 0423 (La. Ct. App.). Following Hurricane Ida, Americas Insurance Company, a property and casualty insurance company, became insolvent and was unable to pay the hurricane claims filed by Louisiana policyholders. James J. Donelon, the Commissioner of Insurance for the State of Louisiana, filed a verified petition against AIC on January 14, 2022, pursuant to the Rehabilitation, Liquidation, Conservation Act ("RLCA"), La. R. S. 22: 2001 et seq., for ancillary receivership and conservation, injunctive relief, re-domestication for domestic rehabilitation, and an alternative rule to show cause. The Commissioner sought a variety of immediate orders, including the Commissioner' s appointment as the Ancillary Receiver for AIC. On January 14, 2022, the district court signed a Rehabilitation Order placing AIC into Ancillary Receivership; re-domesticating AIC from the District of Columbia to Louisiana; converting the ancillary receivership to a rehabilitation proceeding; placing AIC into rehabilitation; naming the Commissioner as Rehabilitator; and naming Billy J. Bostick as Receiver of AIC. The Commissioner amended his petition to add Assure Company (the holding company of AIC) and Assure Underwriting Agency, LLC (the managing general agency for AIC) as defendants. On February 2, 2022, the district court issued an order confirming that the January 14, 2022 Rehabilitation Order would remain in effect, placing AHC and AUA into rehabilitation with AIC. The Rehabilitation Orders granted the Commissioner and Receiver control over all assets of the AIC companies, including bank accounts, and imposed a stay on all legal actions, preventing further lawsuits or claims against the AIC companies, the Commissioner, or the Receiver to protect their assets and property. On March 23, 2022, Cadence Bank filed an ex parte petition to intervene in the receivership proceeding to protect its rights as a purported first-priority lienholder of AIC. The Bank alleged it extended an $8 million loan to AHC, the holding company of AIC, on November 18, 2020, in partnership with the federal government through the Main Street Lending Program. The Bank sought injunctive relief to prevent the Receiver from using the Bank' s collateral for purposes other than repayment of the $ 8 million loan. The district court ordered the filing of the Bank' s petition for intervention. On June 23, 2022, the district court entered an order of liquidation and finding of insolvency. Pertinently, the district court declared the AIC companies insolvent; appointed the Commissioner as Liquidator; ordered that Mr. Bostick remain appointed as Receiver; cancelled all insurance policies issued by AIC; acknowledged the May 10, 2022 Consent Order signed in the Bank' s injunction action; and ordered that the Consent Order remain in effect for the period of time necessary for the parties to litigate, or otherwise resolve, all issues related to the Bank' s alleged lien against the cash accounts or other assets of the AIC companies. The Commissioner, acting as Liquidator for the AIC companies, through the Receiver, responded to the Bank's petition for intervention by raising affirmative defenses and filing a reconventional demand and third-party demands. In the reconventional demand, the Receiver accused the Bank of fraudulent transfer, aiding and abetting breach of fiduciary duty, conspiracy to breach fiduciary duty, and unjust enrichment. Additionally, the Receiver filed third-party demands against Ray Pate Jr. (CEO and director of AIC), Alexander "Chip" L. Blondeau (Director and Audit Committee Chair), and the two insurers, XL Specialty Insurance Company and Capitol Specialty Insurance Company, alleging breach of fiduciary duty and negligent administration. The Bank answered the Receiver's reconventional demand and raised affirmative defenses. The Bank also asserted a reconventional demand against the AIC companies; third party demands against Assure Re Intermediaries, Inc., ISG Acquisition II, LLC, Americas Sub Holding Corporation, and Quality Casualty Insurance Company, Inc. (collectively, the "AIC subsidiaries"); and cross claims against Mr. Pate, Mr. Blondeu, Anne Missett AIC' s Chief Operating Office, Executive Vice-President, and Secretary) collectively, the " D&O defendants"), and their insurers, XL Insurance and CapSpecialty Insurance. The Bank filed multiple claims against the AIC companies, its subsidiaries, and other parties involved. It sought a declaratory judgment to clarify its rights as a secured creditor, as well as claims for breach of contract and indemnification against the AIC companies. Against the credit parties and the D&O defendants, the Bank asserted causes of action for negligent misrepresentation, detrimental reliance, estoppel, and, alternatively, unjust enrichment. The Bank also pursued claims against XL Insurance and CapSpecialty Insurance, asserting liability under Louisiana's Direct Action Statute. The Bank sought a declaratory judgment confirming its first-priority security interest, a monetary judgment for the loan's full amount, including principal, interest, attorney's fees, compensatory damages, litigation costs, indemnification, and any equitable relief it may be entitled to. In response, the Receiver raised several legal objections, including no cause of action, no right of action, and lis pendens, while also filing a motion to enforce the district court's June 23, 2022 Liquidation Order. The Receiver objected specifically to the Bank's incidental demands, including its reconventional demand against the AIC companies, third-party demands against AIC subsidiaries, and cross claims against the D&O defendants and their insurers. The Receiver argued that these claims were unsecured, general creditor claims and must be resolved through the formal proof-of-claim process outlined in the RLCA and the Liquidation Order. The Receiver contended that the Bank was prohibited by law and the Liquidation Order from bypassing this process, as the Bank had already filed a proof-of-claim. Additionally, the Receiver argued that the Bank's request for a declaratory judgment was barred by lis pendens, as the matter was already pending in court. The Bank opposed the Receiver's exceptions, arguing that it is entitled to assert its own claims and incidental demands in response to the Receiver's allegations, as allowed by La. C.C.P. arts. 425(A), 1061(B), and the doctrine of res judicata. The Bank maintained that the Receiver had agreed, through the Liquidation Order and Consent Order, that all claims related to the $8 million loan would be addressed in litigation within the receivership proceeding, not through the proof-of-claims process. The Bank argued that by consenting to litigate these claims outside of the formal claims process, the Receiver waived its objection to the Bank's claims. Therefore, the Bank asserted that if the district court enforces the Liquidation Order, it must also deny the Receiver's exceptions. Following a hearing held on September 25, 2023, the district court sustained the Receiver's peremptory exception raising the objection of no cause of action and granted the Receiver's motion to enforce the liquidation order. The district court signed a judgment in conformity therewith on October 23, 2023. The Bank now appeals. The question raised herein by the Bank is whether the district court erred in sustaining the Receiver's peremptory exception raising the objection of no cause of action. The Judges explained that, under the RLCA, claims against the D&O defendants for damages resulting from their actions as officers or directors of the AIC companies fall exclusively within the authority of the Commissioner, as Liquidator, through the Receiver. The RLCA does not allow individual creditors, like the Bank, to assert causes of action that are vested in the Commissioner. Any damages caused by the D&O defendants' actions belong to the AIC companies' estate, and any recovery will be distributed through the proof-of-claims process in accordance with La. R.S. 22:2025. Therefore, the court did not err in sustaining the Receiver's objection that the Bank had no cause of action for its cross claim against the D&O defendants. Based on the foregoing, they affirm the district court's October 23, 2023 judgment. All costs of this appeal are assessed to the appellant, Cadence Bank. A copy of the Court's decision is available at https://urlcurt.com/u?l=A5xTxI Assure Underwriting Agency, LLC filed a Chapter 11 petition (Bankr. E.D. La. Case No. 21-11436) on Dec. 14, 2021. The petition was signed by Ronald Rayburn Pate, Jr., president and CEO. The case is assigned to Judge Meredith S. Grabill. At the time of filing, the Debtor estimated $1 million to $10 million in both assets and liabilities. The Debtor is represented by Scott R. Cheatham, Esq., at Adams and Reese. ASTRA ACQUISITION: Oaktree Strategic Marks $5.2MM Loan at 17% Off ----------------------------------------------------------------- Oaktree Strategic Credit Fund has marked its $5,244,000 loan extended to Astra Acquisition Corp to market at $4,348,000 or 83% of the outstanding amount, according to a disclosure contained in Oaktree Strategic's Form 10-K for the Quarterly Period Ended September 30, 2024, filed with the Securities and Exchange Commission. Oaktree Strategic is a participant in a First Lien Term Loan (SOFR + 6.75%) to Astra Acquisition Corp. The loan accrues interest at a rate of 11.35% Payment in Kind per annum. The loan matures on February 25, 2028. Oaktree Strategic is a specialty finance company with a focus on and a goal of providing financing solutions to high-growth, innovative venture capital-backed and institutional-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries. Hercules is a Maryland corporation formed in December 2003 that began investment operations in September 2004. On February 25, 2016, Hercules changed its name from Hercules Technology Growth Capital, Inc to Hercules Capital, Inc. Oaktree Strategic is led by Armen Panossian, Chairman, Chief Executive Officer and Co-Chief Investment Officer; and Christopher McKown, Chief Financial Officer and Treasurer. The fund can be reach through: Armen Panossian Oaktree Strategic Credit Fund 333 South Grand Avenue, 28th Floor Los Angeles, CA, 90071 Tel: (213) 830-6300 Astra Acquisition Corp. is a provider of cloud-based software solutions for higher educational institutions. ASTRA ACQUISITION: Oaktree Strategic Marks $8.3MM Loan at 71% Off ----------------------------------------------------------------- Oaktree Strategic Credit Fund has marked its $8,316,000 loan extended to Astra Acquisition Corp to market at $2,391,000 or 29% of the outstanding amount, according to a disclosure contained in Oaktree Strategic's Form 10-K for the Quarterly Period Ended September 30, 2024, filed with the Securities and Exchange Commission. Oaktree Strategic is a participant in a First Lien Term Loan (SOFR + 5.25%) to Astra Acquisition Corp. The loan matures on October 25, 2028. Oaktree Strategic is a specialty finance company with a focus on and a goal of providing financing solutions to high-growth, innovative venture capital-backed and institutional-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries. Hercules is a Maryland corporation formed in December 2003 that began investment operations in September 2004. On February 25, 2016, Hercules changed its name from Hercules Technology Growth Capital, Inc to Hercules Capital, Inc. Oaktree Strategic is led by Armen Panossian, Chairman, Chief Executive Officer and Co-Chief Investment Officer; and Christopher McKown, Chief Financial Officer and Treasurer. The fund can be reach through: Armen Panossian Oaktree Strategic Credit Fund 333 South Grand Avenue, 28th Floor Los Angeles, CA, 90071 Tel: (213) 830-6300 Astra Acquisition Corp. is a provider of cloud-based software solutions for higher educational institutions. AVALON PIMA: Hires Marcus & Millichap as Real Estate Broker ----------------------------------------------------------- Avalon Pima, LLC and Avalon Van Buren, LLC seek approval from the U.S. Bankruptcy Court for the District of Arizona to hire Marcus & Millichap as real estate broker. The firm will market and sell the Debtor's real property located at 15237 N 87th St. Scottsdale, AZ 85260, APN 215-52-037F. The broker's total commission is 4 percent of the final sale price of the property. Mark Ruble, a broker at Marcus & Millichap, assured the court that his firm is disinterested and has no connection with the Debtors, any of the Debtors' creditors, any other party-in-interest, or their respective attorneys. The broker can be reached through: Mark Ruble Marcus & Millichap 2398 East Camelback Road, Suite 300 Phoenix, AZ 85016 Office: (602) 687-6700 Direct: (602) 687-6766 About Avalon Pima, LLC Avalon Pima, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 24-09893) on Nov. 18, 2024, listing $1,000,001 to $10 million in both assets and liabilities. Judge Scott H Gan presides over the case. Philip J. Giles, Esq. at Allen, Jones & Giles, PLC represents the Debtor as counsel. B.A.S.S. & M.: Taps Brian Ayers of Rock Creek Advisors as CRO ------------------------------------------------------------- B.A.S.S. & M., Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Rock Creek Advisors, LLC, to provide a chief restructuring officer and additional personnel, and designate Brian Ayers as CRO. Mr. Ayers will render these services: a) maintaining control of the bank accounts and transactions of the Debtors; b) adapting the current 13-week cash flow budget to meet the goals of a restructuring plan as necessary; c) assisting the Debtors with the operations and management of independent contractors in the maintenance of assets; d) negotiating on behalf of the Debtors outstanding amounts due to secured lenders and creditors for purposes of negotiating potential structures and deals; e) review and negotiate terms with key stake holders, vendors and debt holders; f) review and consider strategic options for the Debtors and consult the Debtors and their counsel and advisors regarding next steps; g) work with the Debtors' professionals to assist in the administration of the Chapter 11 Cases and provide testimony relating the Chapter 11 Cases, including without limitation providing testimony relating to the Bankruptcy Case; h) work with the Debtors' sale agent, Hilco, to liquidate and sell assets, determining the highest and best bids; and i) perform and carry out any other services, duties, or obligations necessary to operate and manage the Debtors' businesses in the CRO's reasonable business judgment. The firm will a monthly rate of $35,000. Rock Creek also requires a retainer of $35,000. Brian Ayers, managing director at Rock Creek Advisors, assured the court that his firm is a "disinterested person" within the meaning of 11 U.S.C. 101(14). The firm can be reached through: Brian Ayers Rock Creek Advisors, LLC 1738 Belmar Blvd. Belmar, NJ 07719 Phone: (201) 315-2521 Email: bayers@rockcreekfa.com About B.A.S.S. & M. Inc. B.A.S.S. & M. Inc. is primarily engaged in renting and leasing real estate properties. B.A.S.S. & M. Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ill. Lead Case No. 24-15381) on Oct. 16, 2024. In the petition filed by Suzie B. Wilson, as authorized representative, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtors tapped ARENTFOX SCHIFF LLP as general bankruptcy counsel, and ROCK CREEK ADVISORS, LLC, as financial advisor. STRETTO, INC., is the claims agent. BARRYVILLE MGT: Sec. 341(a) Meeting of Creditors on January 29 -------------------------------------------------------------- On January 2, 2025, Barryville Management 1 Corp. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York. According to court filing, the Debtor reports between $100,000 and $500,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Sec. 341(a) filed by Daniel Rudewicz on behalf of United States Trustee to be held on 1/29/2025 at 01:30 PM at Office of UST (TELECONFERENCE ONLY). About Barryville Management 1 Corp. Barryville Management 1 Corp. operates in the NAICS 7521 industry. Barryville Management 1 Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10000) on January 2, 2025 In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge David S. Jones handles the case. BARTLEY INVESTMENTS: Selling Baybridge Property to Wisco 7 ---------------------------------------------------------- Bartley Investments, Ltd., seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to sell real property located at 4405 West Ballast Point Boulevard, Tampa, Florida 33611, free and clear of liens. Dr. Ruediger Mueller is appointed as the Subchapter V Trustee of the Debtor. The Debtor is the owner of real property which is particularly described as Baybridge Revised E 66 FT of W 146.5 FT of S 1/2 of Lot 1 Block 30 Folio:132047-0000. The Debtor wants to sell the Property to Wisco 7, LLC, or its assigns for the purchase price of $260,000. The sale of the Real Property is presently set to close on or before January 31, 2025. The only party other than the Hillsborough County Tax Collector who may claim a lien against the Real Property is Tamala Menendez who may have a secured claim based upon a Final Judgment entered by the Circuit Court of Hillsborough County, Florida. The Debtor seeks to sell the Real Property "as is" and "where is", free and clear of any potential liens. Any taxes and ordinary closing costs shall be paid at closing, including the real estate commission of Ronak Patel. Although not stated in the Sale Contract, Mr. Patel will receive a total commission of 5% of the gross sale price. Mr. Patel has agreed to pay 35% of the 2.5% of the commission attributed to the seller (approximately 0.875% of the gross sale price) back to the Debtor. The net sale proceeds will be held in trust by Dr. Mueller in an interest bearing Debtor-in-possession bank account absent further order of the Court regarding the distribution of the net sale proceeds. About Bartley Investments Bartley Investments Ltd. owns 12 rental properties in Tampa Villa South, Tampa, Florida valued at $8.68 million. Bartley Investments Ltd sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02952) on May 23, 2024. In the petition signed by Allan N. Bartley, general partner, the Debtor disclosed total assets of $8,764,925 and total liabilities of $3,703,633. Honorable Bankruptcy Judge Catherine Peek McEwen oversees the case. The Debtor tapped Buddy D. Ford, Esq., at Buddy D. Ford, P.A. as counsel and Accounting & Business Partners LLC as accountant. BARTLEY INVESTMENTS: To Dispose Norma Park Property to Wisco 7 -------------------------------------------------------------- Bartley Investments, Ltd., seeks consent from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to sell real property located at 4207 West Bay Vista Avenue, Tampa, Florida 33611, free and clear of liens. The Debtor is the owner of real property which is particularly described as Norma Park Subdivision Lot 13 Block 6 Folio:129439-0000. The Debtor seeks to sell the Property to Wisco 7, LLC, or its assigns for the purchase price of $340,000. The sale of the Real Property is presently set to close on or before January 31, 2025. The only party other than the Hillsborough County Tax Collector who may claim a lien against the Real Property is Tamala Menendez who may have a secured claim based upon a Final Judgment entered by the Circuit Court of Hillsborough County, Florida. The Debtor seeks to sell the Real Property "as is" and "where is", free and clear of any potential liens. Any taxes and ordinary closing costs shall be paid at closing, including the real estate commission of Ronak Patel. Although not stated in the Sale Contract, Mr. Patel will receive a total commission of 5% of the gross sale price. Mr. Patel has agreed to pay 35% of the 2.5% of the commission attributed to the seller (approximately 0.875% of the gross sale price) back to the Debtor. The net sale proceeds will be held in trust by Dr. Mueller in an interest bearing Debtor-in-possession bank account absent 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. Dr. Ruediger Mueller is appointed as the Subchapter V Trustee of the Debtor. The Debtor tapped Buddy D. Ford, Esq., at Buddy D. Ford, P.A. as counsel and Accounting & Business Partners LLC as accountant. BARTLEY INVESTMENTS: To Sell Murray Heights Property for $260,000 ----------------------------------------------------------------- Bartley Investments, Ltd., asks permission from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to sell real property located at 2936 West Rogers Avenue, Tampa, Florida 33611, free and clear of liens. The Debtor is the owner of real property which is particularly described as Murray Heights Lot 18 Block 3 Folio: 134531-0000. The Debtor intends to sell the Property to Wisco 7, LLC or its assigns for the purchase price of $310,000. The sale of the Real Property is presently set to close on or before January 31, 2025. The only party other than the Hillsborough County Tax Collector who may claim a lien against the Real Property is Tamala Menendez who may have a secured claim based upon a Final Judgment entered by the Circuit Court of Hillsborough County, Florida. The Debtor seeks to sell the Real Property "as is" and "where is", free and clear of any potential liens. Any taxes and ordinary closing costs shall be paid at closing, including the real estate commission of Ronak Patel. Although not stated in the Sale Contract, Mr. Patel will receive a total commission of 5% of the gross sale price. Mr. Patel has agreed to pay 35% of the 2.5% of the commission attributed to the seller (approximately 0.875% of the gross sale price) back to the Debtor. The net sale proceeds will be held in trust by Dr. Mueller in an interest bearing Debtor-in-possession bank account absent 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. Dr. Ruediger Mueller is appointed as the Subchapter V Trustee of the Debtor. The Debtor tapped Buddy D. Ford, Esq., at Buddy D. Ford, P.A. as counsel and Accounting & Business Partners LLC as accountant. BARTLEY INVESTMENTS: To Sell Westport Property to Wisco 7 --------------------------------------------------------- Bartley Investments, Ltd. seeks permission from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to sell real property located at 6707 South Kissimmee Street, Tampa, Florida 33616, free and clear of liens. The Debtor is the owner of real property which is particularly described as Westport Lot 3 and N 1/2 of Lot 4 and E 1/2 of Alley Abutting Thereon Block 46. The Debtor intends to sell the Property to Wisco 7, LLC or its assigns for the purchase price of $270,000. The sale of the Real Property is presently set to close on or before January 31, 2025. The only party other than the Hillsborough County Tax Collector who may claim a lien against the Real Property is Tamala Menendez who may have a secured claim based upon a Final Judgment entered by the Circuit Court of Hillsborough County, Florida. The Debtor seeks to sell the Real Property "as is" and "where is", free and clear of any potential liens. Any taxes and ordinary closing costs shall be paid at closing, including the real estate commission of Ronak Patel. Although not stated in the Sale Contract, Mr. Patel will receive a total commission of 5% of the gross sale price. Mr. Patel has agreed to pay 35% of the 2.5% of the commission attributed to the seller (approximately 0.875% of the gross sale price) back to the Debtor. The net sale proceeds will be held in trust by Dr. Mueller in an interest bearing Debtor-in-possession bank account absent 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. Dr. Ruediger Mueller is appointed as the Subchapter V Trustee of the Debtor. The Debtor tapped Buddy D. Ford, Esq., at Buddy D. Ford, P.A. as counsel and Accounting & Business Partners LLC as accountant. BENHAM ORTHODONTICS: Plaintiffs' PI Application Granted in Part --------------------------------------------------------------- In the case captioned as FIVE POINT DENTAL SPECIALISTS, INC., FPDS BENHAM SUB, LLC, and BENHAM ORTHODONTICS, P.A., Plaintiffs, v. ADAM BENHAM, DDS, MS, BENHAM PROPERTY OWNERS ASSOCIATION, LLC, and BENHAM ORTHODONTICS & ASSOCIATES, P.A., Defendants, Adv. No. 24-04068 (Bankr. N.D. Tex.), Judge Edward L. Morris of the United States Bankruptcy Court for the Northern District of Texas granted in part and denied in part the plaintiffs' application for entry of preliminary injunction against targeted defendants. Before the Court for determination in this adversary proceeding is the application of Plaintiffs Five Point Dental Specialists, Inc., FPDS Benham Sub, LLC, and Benham Orthodontics, P.A. for entry of a preliminary injunction against Defendants Adam Benham, DDS, MS and Benham Orthodontics & Associates, P.A. Previously, for reasons stated within the Memorandum Opinion issued by the Court on August 27, 2024, the Court entered a Temporary Restraining Order against the Targeted Defendants. This adversary proceeding involves a dispute between the Five Point Parties, on the one hand, and Benham and certain of his affiliates, including the Benham Debtor, on the other hand, arising out of the sale of Benham's orthodontic practice to the Five Point system in 2020. As relevant to the PI Application, the Plaintiffs have asserted the following claims against the Targeted Defendants within their Complaint: Count 3 – Breach of the APA (against Benham) Count 4 – Breach of the Employment Agreement (against Benham) Count 5 – Tortious Interference with Existing and Prospective Contracts and Business Relationships (against Benham and the Benham Debtor) Count 6 – Tortious Interference with Existing Contracts (against the Benham Debtor) Count 9 – Conversion (against Benham and the Benham Debtor) The PI Application is also included within the Complaint. Plaintiffs have filed their proposed form of preliminary injunction. For each underlying claim that is properly before the Court, to obtain pretrial preliminary injunctive relief in relation thereto, the Plaintiffs must establish each of the following: (1) there is a substantial likelihood that they will prevail on the merits of such claim; (2) there is a substantial threat that irreparable harm will result to the Plaintiffs if the injunction is not granted; (3) the threatened injury to the Plaintiffs outweighs the threatened harm to the Targeted Defendant(s) sought to be enjoined; and (4) the granting of injunctive relief will not disserve the public interest. Counts 3: Breach of the APA In relation to Count 3 of the Complaint,68 Plaintiffs appear to tie their request for injunctive relief to Sec. 7.2(a)(B) of the APA which precludes Benham from taking the following action during the APA Restricted Period: The Court finds that Plaintiffs have not met the necessary criteria for injunctive relief under the contractual language related to Five Point's operations. Specifically, Plaintiffs failed to satisfy the first, second, and third preliminary injunction (PI) elements. The relevant provision restricts providing management, business, marketing, or other support services to orthodontic or dental practices within a 20-mile radius of Five Point's locations or those it has taken steps to operate. However, the Court concluded that the Plaintiffs have not sufficiently demonstrated the required elements for the injunction to be granted. Count 4: Breach of the Employment Agreement The Court finds that Plaintiffs have failed to meet the first and second preliminary injunction (PI) elements in relation to Count 4 of the Complaint. The request for injunctive relief is tied to Section 4.2(a) of the Employment Agreement, which prohibits Benham from being involved with a "Competing Business" during the restricted period. A "Competing Business" is defined as any entity or individual providing support services to dental practices within a 20-mile radius of Benham Ortho's locations. Despite this contractual provision, the Court concluded that Plaintiffs did not provide sufficient evidence to satisfy the first and second PI elements necessary for granting the injunction. Count 5: Tortious Interference with Existing and Prospective Contracts/Relationships Next, in relation to Count 5 of the Complaint, Plaintiffs assert that they have existing and prospective contracts and business relationships with clients and customers (none of which are specified within the Complaint) that the Targeted Defendants have willfully and intentionally interfered with by taking the actions complained of in paragraph 111 of the Complaint. In the particular context of the injunctive relief sought, it appears that the Plaintiffs are suggesting that the Targeted Defendants have interfered with the Plaintiffs' existing and prospective DSO-type business services contracts and relationships. Based upon the evidentiary record before the Court, the Court finds that the Plaintiffs have failed to satisfy the second PI Element. Count 6: Tortious Interference with Existing Contract Finally, in relation to Count 6 of the Complaint, Plaintiffs assert that the Benham Debtor has willfully and intentionally interfered with Benham's contractual obligations to the Five Point Parties under the APA and Employment Agreement. In essence, the Plaintiffs seek to enjoin the Benham Debtor from engaging in the same type of conduct that the Plaintiffs seek to enjoin Benham from taking predicated upon Counts 3 and 4 of the Complaint. Hence, for the same reasons the Court declines to impose pretrial injunctive relief against Benham predicated upon Counts 3 and 4, the Court declines to impose pretrial injunctive relief against the Benham Debtor predicated upon Count 6. The Court will grant in part, and deny in part, the PI Application insofar as requesting the injunctive relief set out in paragraph 4 of the Proposed PI. Specifically, the injunction will be limited to the protective language set forth within APA Sec. 7.2(e).103 The Court will grant the PI Application insofar as requesting the return of Confidential Information, but limited to terms that are consistent with the provisions of Sec. 4.3 of the Employment Agreement. A copy of the Court's decision is available at https://urlcurt.com/u?l=XGPC0q About Benham Orthodontics & Associates Benham Orthodontics & Associates, P.A. provides orthodontic care to children and adults. It is based in Colleyville, Texas, and conducts business under the name Benham Family Orthodontics. Benham sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 24-42784) on August 7, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Adam Benham, director, signed the petition. Judge Edward L. Morris presides over the case. Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC represents the Debtor as bankruptcy counsel. BIOLASE INC: Unsecureds Will Get 10% of Claims in Liquidating Plan ------------------------------------------------------------------ Biolase, Inc., and its Debtor Affiliates filed with the U.S. Bankruptcy Court for the District of Delaware a Combined Joint Plan of Liquidation and Disclosure Statement dated December 23, 2024. Biolase was originally formed as Societe Endo Technic, SA ("SET") in 1984 in Marseilles, France, to develop and market various endodontic and laser products. In 1987, SET merged into Pamplona Capital Corp., a public holding company incorporated in Delaware. As of the Petition Date, the Debtors were global market leaders in the manufacturing and marketing of dental laser systems. The Debtors' proprietary systems allowed dentists, periodontists, endodontists, pediatric dentists, oral surgeons, and other dental specialists to perform a broad range of minimally invasive dental procedures, including cosmetic, restorative, and complex surgical applications. The Debtors were also developing a business-to-consumer line of business related to cosmetic and pain therapy devices. To address their operational challenges and liquidity needs, the Debtors engaged in various merger and acquisition initiatives for years. Dating back to 2018, the Debtors reached out to at least 45 buyout and growth capital private equity firms looking for a sponsor deal, but such efforts proved unsuccessful. PIPStek, who has been in litigation with the Debtors over alleged patent infringement, submitted an LOI that (i) contemplated a chapter 11 sale with a short timeline to complete confirmatory diligence and execute a purchase agreement, (ii) requested a prepetition exclusivity period, and (iii) contemplated DIP financing to bridge to a closing of a sale transaction. The Debtors pushed back on the exclusivity request, and after reviewing the LOIs and term sheet with the Debtors' board, management and key stakeholders, including SWK, the Debtors were ultimately able to reach agreement with PIPStek to eliminate the exclusivity request, which was confirmed in a revised LOI, dated August 5, 2024. At the same time, the Debtors and their advisors continued discussions with the Prepetition Lender to gauge its willingness to fund the Debtors through closing of a sale in chapter 11. The Prepetition Lender was unwilling to consent to a priming DIP Facility by PIPStek or any other third party. The Prepetition Lender, however, was willing to provide the Debtors with postpetition financing and expressed a willingness to fund the Debtors with incremental liquidity before the filing of these Chapter 11 Cases to bridge to the Petition Date, with PIPStek as the stalking horse bidder. Faced with no other actionable sale proposal, the Debtors executed the Stalking Horse APA with PIPStek, pursuant to which it agreed to (a) serve as the Stalking Horse Bidder; (b) acquire substantially all of the Debtors' assets as a going concern; (c) pay a $1.4 million deposit; (d) expose the Stalking Horse APA to higher or better offers through a competitive auction process; and (e) receive standard bid protections in the form of a market rate break-up fee. Under the terms of the Stalking Horse APA, the Stalking Horse Bidder would purchase the Debtors' assets for aggregate consideration of: (a) $14.0 million in cash paid at closing, subject to a working capital adjustment; (b) assumption of certain assumed liabilities; and (c) the Delaware Litigation Settlement Value (as defined in the Stalking Horse APA). With the benefit of the Stalking Horse APA, the Debtors planned to continue the marketing and sale process by requesting the Bankruptcy Court's approval of the Bidding Procedures to govern the sale process, including the Auction. SSG also continued to market the Debtors' Assets to potential buyers after the Petition Date and engaged in discussions with parties that executed a confidentiality agreement, with the goal of having as many bidders as possible participate in the auction and ensure a robust sale process that would maximize the value of the Debtors' Assets. On November 4, 2024, the Debtors held the Auction in accordance with the Bidding Procedures Order. After multiple rounds of bidding, the Purchaser submitted the highest and best bid for the purchase of substantially all of the Debtors' Assets, which bid consisted of $20,050,000 in cash consideration. On November 5, 2024, the Debtors filed the Notice of Auction Results declaring the Purchaser as the successful bidder. On November 15, 2024, the Bankruptcy Court entered the Sale Order approving the Sale to the Purchaser. The Sale closed on November 26, 2024. Class 3 consists of all General Unsecured Claims (including the SWK Deficiency Claims). Except to the extent that the Holder of an Allowed General Unsecured Claim agrees to less favorable treatment, each holder of an Allowed General Unsecured Claim shall receive (i) its pro rata share of the Liquidation Trust Interests and (ii) the lesser of (A) its pro rata share of the GUC Recovery Amount, and (B) its 10% GUC Distribution. Class 3 is Impaired under the Plan. The allowed unsecured claims total $2,434,829.55. On the Effective Date, all Interests in the Debtors shall be cancelled, and the Holders of Interests shall receive no Distribution under the Plan. Payments to be made under the Plan shall be funded from (i) Cash held by the Debtors as of the Effective Date, including the Liquidating Trust Funding Amount, Administrative Claim Contingency Amount and the GUC Recovery Amount; and (ii) net proceeds of Retained Causes of Action and other remaining Assets of the Estates, including Interests in the Non-Debtor Affiliates. A full-text copy of the Disclosure Statement dated December 23, 2024 is available at https://urlcurt.com/u?l=wqWbKO from Epiq Corporate Restructuring, LLC, claims agent. Co-Counsel to the Debtors: M. Blake Cleary, Esq. Brett M. Haywood, Esq. Maria Kotsiras, Esq. Shannon A. Forshay, Esq. POTTER ANDERSON & CORROON LLP 1313 N. Market Street, 6th Floor Wilmington, Delaware 19801 Tel: (302) 984-6000 Fax: (302) 658-1192 Email: bcleary@potteranderson.com bhaywood@potteranderson.com mkotsiras@potteranderson.com sforshay@potteranderson.com Joshua D. Morse, Esq. Claire K. Wu, Esq. PILLSBURY WINTHROP SHAW PITTMAN LLP Four Embarcadero Center, 22nd Floor San Francisco, CA 94111-5998 Tel: (415) 983-1000 Fax: (415) 983-1200 Email: joshua.morse@pillsburylaw.com claire.wu@pillsburylaw.com - and - Dania Slim, Esq. Caroline Tart, Esq. PILLSBURY WINTHROP SHAW PITTMAN LLP 31 West 52nd Street New York, NY 10019-6131 Tel: (212) 858-1000 Fax: (212) 858-1500 Email: dania.slim@pillsburylaw.com caroline.tart@pillsburylaw.com About Biolase, Inc. Biolase, Inc., a company in Foothill Ranch, Calif., and its affiliates manufacture and market dental laser systems. The Debtors' proprietary systems allow dentists, periodontists, endodontists, pediatric dentists, oral surgeons, and other dental specialists to perform a broad range of minimally invasive dental procedures, including cosmetic, restorative, and complex surgical applications. Biolase and its affiliates filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 24-12245) on Oct. 1, 2024. John Beaver, president and chief executive officer, signed the petitions. The Debtors reported total assets of $30,641,000 and total liabilities of $32,767,000 as of June 30, 2024. Judge Karen B. Owens oversees the cases. The Debtors tapped Potter Anderson & Corroon, LLP and Pillsbury Winthrop Shaw Pittman, LLP as legal counsel; SSG Capital Advisors as investment banker; and B. Riley Financial, Inc., as financial advisor. Epiq Corporate Restructuring, LLC, is the Debtors' administrative advisor and claims and noticing agent. BLUESUMMIT MEDICAL: Committee Taps Kutak Rock LLP as Legal Counsel ------------------------------------------------------------------ The official committee of unsecured creditors of Bluesummit Medical Group LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Western District of Virginia to employ Kutak Rock LLP as its counsel. The firm's services include: a. advising the Committee with respect to its powers and duties with regard to these bankruptcy cases; b. advising and consulting on issues raised during the pendency of these chapter 11 cases; c. taking all necessary action including negotiation, preparing appropriate pleadings, motions, applications, orders, reports and papers necessary or otherwise beneficial to the interests of the Committee; and d. performing all other necessary or otherwise beneficial legal services for the Committee in connection with these chapter 11 cases. The firm will bill these hourly rates: Jeremy S. Williams, Partner $780 Adolyn C. Wyatt, Associate $505 Lynda M. Wood, Paralegal $225 Charisse C. Matthews, Paralegal $225 Amanda Nugent, Paralegal $225 As disclosed in the court filings, Kutak Rock is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code, as required by section 327(a) of the Bankruptcy Code and does not hold or represent an interest adverse to the estate. The firm can be reached through: Jeremy S. Williams, Esq. Adolyn C. Wyatt, Esq. KUTAK ROCK LLP 1021 East Cary Street, Suite 810 Richmond, VA 23219 Tel: (804) 644-1700 Fax: (804) 783-6192 Email: jeremy.williams@kutakrock.com Email: adolyn.wyatt@kutakrock.com About Bluesummit Medical Group LLC 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. BOBEL ELECTRIC: Case Summary & Seven Unsecured Creditors -------------------------------------------------------- Debtor: Bobel Electric, Inc. 4319 Shore Drive Lorain, OH 44053 Business Description: The Debtor is the fee simple owner of three properties located in Lorain, OH, having a total current value of $1.23 million. Chapter 11 Petition Date: January 3, 2025 Court: United States Bankruptcy Court Northern District of Ohio Case No.: 25-10010 Judge: Hon. Jessica E Price Smith Debtor's Counsel: Glenn E. Forbes, Esq. FORBES LAW LLC 166 Main Street Painesville, OH 44077 Tel: 440-739-6211 E-mail: bankruptcy@geflaw.net Total Assets: $1,249,270 Total Liabilities: $2,327,862 The petition was signed by William Bobel as president. A full-text copy of the petition containing, among other items, a list of the Debtor's seven unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/6S3NBIA/Bobel_Electric_Inc__ohnbke-25-10010__0001.0.pdf?mcid=tGE4TAMA CAMDEN DIOCESE: Insurers Win Appeal to Pause Abuse Settlement ------------------------------------------------------------- Randi Love of Bloomberg Law reports that the Diocese of Camden, N.J., has to wait for an appeal decision before proceeding with its $87.5 million settlement for clergy abuse survivors after insurers won a bid to pause implementation. According to Bloomberg Law, the US Court of Appeals for the Third Circuit found that the insurers' challenge to alleged nonconsensual third-party releases in the diocese's bankruptcy plan has a "likelihood of success." This determination is based on recent US Supreme Court rulings in Truck Insurance Exchange v. Kaiser Gypsum Co. and Harrington v. Purdue Pharma LP. These rulings were unavailable for the district court's consideration during its review of the case last April 2024, the report states. About The Diocese of Camden, NJ The Diocese of Camden, New Jersey is a nonprofit religious corporation organized pursuant to Title 16 of the Revised Statutes of New Jersey. The Diocese is the secular legal embodiment of the Roman Catholic Diocese of Camden, a juridic person recognized under Canon Law. The Diocese of Camden sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 20-21257) on Oct. 1, 2020. The petition was signed by Reverend Robert E. Hughes, vicar General and vice president. At the time of the filing, the Debtor had total assets of $53,575,365 and liabilities of $25,727,209. Judge Jerrold N. Poslusny Jr. oversees the case. McManimon, Scotland & Baumann, LLC, is the Debtor's legal counsel. CAPITAL PROPERTIES: Hires Peter G. Macaluso as Bankruptcy Counsel ----------------------------------------------------------------- Capital Properties and Home Services, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of California to hire the Law Office of Peter G. Macaluso as its bankruptcy counsel. The firm will render these services: a. analysis of the debtor's financial situation, and rendering advice to the debtor in determining whether to file a petition in bankruptcy; b. preparation and filing of any petition, schedules, statement of affairs and plan which may be required; c. representation of the debtor at the meeting of creditors and confirmation hearing, and any adjourned hearings thereof; d. negotiations with secured creditors to reduce to market value; exemption planning; e. preparation and filing of reaffirmation agreements and applications as needed; and f. preparation and filing of motions pursuant to 11 USC 522(f)(2)(A) for avoidance of liens on household goods. The counsel estimates that fees will probably be at least $10,000. The firm will be reimbursed for out-of-pocket expenses incurred. Peter Macaluso, Esq., a partner at the Law Offices of Peter G. Macaluso, disclosed in a court filing that his firm is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. The firm can be reached at: Peter G. Macaluso, Esq. LAW OFFICES OF PETER G. MACALUSO 7230 South Land Park Drive, Suite 127 Sacramento, CA 95831 Tel: (916) 392-6591 Cell: (916) 705-8847 Fax: (916) 392-6590 Email: info@pmbankruptcy.com About Capital Properties and Home Services Capital Properties and Home Services, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-25376) on November 26, 2024, with $0 to $50,000 in assets and $500,001 to $1 million in liabilities. Judge Christopher D. Jaime presides over the case. CAREMAX INC: Files Monthly Operating Reports Amid Ch. 11 Bankruptcy ------------------------------------------------------------------- TipRanks reports that CareMax, Inc. has filed its monthly operating reports as part of its ongoing Chapter 11 bankruptcy proceedings. According to the report, the company has advised investors of the high-risk nature of its securities, warning that a total loss for security holders is expected. The monthly operating reports, which are unaudited and not prepared in accordance with Generally Accepted Accounting Principles (GAAP), are solely intended to meet court requirements and should not be used for investment purposes, according to TipRanks. CareMax continues to operate as a debtor-in-possession while navigating its restructuring efforts, the report states. About CareMax Inc. CareMax Inc. is a provider of medical centers for elderly patients. CareMax and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Lead Case No. 24-80093) on November 17, 2024. In its petition, CareMax reported estimated liabilities between $500 million and $1 billion and estimated assets between $100 million and $500 million. Judge Michelle V. Larson oversees the cases. The Debtors tapped Thomas Robert Califano, Esq., at Sidley Austin, LLP as bankruptcy counsel; Alvarez & Marsal North America, LLC as financial advisor; and Piper Sandler & Co. as investment banker. Stretto, Inc. is the Debtors' claims, noticing and solicitation agent. CAREPOINT HEALTH: Committee Taps Pachulski Stang as Co-Counsel -------------------------------------------------------------- The official committee of unsecured creditors of CarePoint Health Systems Inc., doing business as Just Health Foundation, and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Pachulski Stang Ziehl & Jones LLP as its co-counsel. The firm's services include: a. assisting, advising and representing the Committee in its consultations with the Debtors regarding the administration of these Cases; b. assisting, advising and representing the Committee with respect to the Debtors' retention of professionals and advisors with respect to the Debtors' business and these Cases; c. assisting, advising and representing the Committee in analyzing the Debtors' assets and liabilities, investigating the extent and validity of liens and participating in and reviewing any proposed asset sales, any asset dispositions, financing arrangements and cash collateral stipulations or proceedings; d. assisting, advising and representing the Committee in any manner relevant to reviewing and determining the Debtors' rights and obligations under leases and other executory contracts; e. assisting, advising and representing the Committee in investigating the acts, conduct, assets, liabilities and financial condition of the Debtors, the Debtors' operations and the desirability of the continuance of any portion of those operations, and any other matters relevant to the Cases or to the formulation of a plan; f. assisting, advising and representing the Committee in connection with any sale of the Debtors' assets; g. assisting, advising and representing the Committee in its participation in the negotiation, formulation, or objection to any plan of liquidation or reorganization; h. assisting, advising and representing the Committee in understanding its powers and its duties under the Bankruptcy Code and the Bankruptcy Rules and in performing other services as are in the interests of those represented by the Committee; i. assisting, advising and representing the Committee in the evaluation of claims and on any litigation matters, including avoidance actions; and j. providing such other services to the Committee as may be necessary in these Cases. The current standard hourly rates for professionals and paralegals presently designated to represent the Committee are: Partners $995 to $2,175 Of Counsel $975 to $1,675 Associates $650 to $1,075 Paraprofessionals $545 to $645 The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The Firm provides the following responses to the questions set forth in Part D of the Appendix B Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under United States Code by Attorneys in Larger Chapter 11 Cases (the "Revised UST Guidelines"): Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Answer: No. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed post petition, explain the difference and reasons for the difference? Answer: N/A Question: Has your client approved your respective budget and staffing plan, and, if so, for what budget period? Answer: N/A Bradford Sandler, Esq., a partner at Pachulski Stang Ziehl & Jones LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Bradford J. Sandler, Esq. James E. O'Neill, Esq. Colin R. Robinson, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 N. Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705 (Courier 19801) Telephone: (302) 652-4100 Facsimile: (302) 652-4400 Email: bsandler@pszjlaw.com joneill@pszjlaw.com crobinson@pszjlaw.com About CarePoint Health CarePoint Health brings quality, patient-focused health care to Hudson County. Combining the resources of three area hospitals, Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken University Medical Center, CarePoint Health provides a new approach to deliver health care that puts the patient front and center. CarePoint Health leverages a network of top doctors, nurses, and other medical professionals whose expertise and attentiveness work together to provide complete coordination of care, from the doctor's office to the hospital to the home. Patients benefit from the expertise and capabilities of a broad network of leading specialists and specialized technology. At CarePoint Health, all medical professionals emphasize preventive medicine and focus on educating patients to make healthy life choices. For more information on its facilities, partners and services, visit www.carepointhealth.org. CarePoint Health Systems Inc., doing business as Just Health Foundation, and its affiliates filed voluntary petitions for relief under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12534) on Nov. 3, 2024, with up to $1 million in assets and up to $50,000 in liabilities. Judge J. Kate Stickles oversees the cases. The Debtors tapped Dilworth Paxson LLP as legal counsel, Ankura Consulting as financial advisor, and Epiq Corporate Restructuring, LLC as claims and noticing agent and administrative advisor. CAREPOINT HEALTH: Committee Taps Sills Cummis & Gross as Co-Counsel ------------------------------------------------------------------- The official committee of unsecured creditors of CarePoint Health Systems Inc., doing business as Just Health Foundation, and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Sills Cummis & Gross P.C. as its co-counsel. The professional services Sills will render include: a. provide legal advice regarding the Committee's rights, powers, and duties in these cases; b. prepare all necessary applications, answers, responses, objections, orders, reports, and other legal papers; c. represent the Committee in any and all matters arising in these cases, including any dispute or issue with the Debtors or other third parties; d. assist the Committee in its investigation and analysis of the Debtors, their capital structures, and issues arising in or related to these cases, including but not limited to the review and analysis of all pleadings, claims, and bankruptcy plans that might be filed in these cases, and any negotiations or litigation that may arise out of or in connection with such matters, the Debtors' operations, the Debtors' financial affairs, and any proposed disposition of the Debtors' assets; e. represent the Committee in all aspects of any sale and bankruptcy plan confirmation proceedings; f. perform any and all other legal services for the Committee that may be necessary or desirable in these cases. Sills' current hourly rates are: Members $695 to $1,150 Of Counsels $650 to $895 Associates $375 to $650 Paraprofessionals $325 to $395 The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The firm's responses to the requests for additional information set forth in section (D)(1) of the Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under 11 U.S.C. Section 330 by Attorneys in Larger Chapter 11 Cases Effective as of November 1, 2013 (the "U.S. Trustee Guidelines") are as follows: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Answer: Yes. As set forth above, Sills agreed to reduce the hourly rate of Andrew Sherman to $995. Question: Do any of the Sills professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Answer: Not applicable. Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Answer: The Committee has approved the terms of retention set forth in the Application and this Declaration. If requested by the Committee, Sills will submit a budget and staffing plan consistent with the form identified as Exhibit C to the U.S. Trustee Guidelines for approval to the Committee in the normal course of its representation. Andrew H. Sherman, Esq., a partner at Sills Cummis & Gross P.C., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Andrew H. Sherman, Esq. Boris I. Mankovetskiy, Esq. SILLS CUMMIS & GROSS, P.C. One Riverfront Plaza Newark, NJ 07102 Tel: (973) 643-7000 Fax: (973) 643-6500 E-mail: asherman@sillscummis.com bmankovetskiy@sillscummis.com About CarePoint Health CarePoint Health brings quality, patient-focused health care to Hudson County. Combining the resources of three area hospitals, Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken University Medical Center, CarePoint Health provides a new approach to deliver health care that puts the patient front and center. CarePoint Health leverages a network of top doctors, nurses, and other medical professionals whose expertise and attentiveness work together to provide complete coordination of care, from the doctor's office to the hospital to the home. Patients benefit from the expertise and capabilities of a broad network of leading specialists and specialized technology. At CarePoint Health, all medical professionals emphasize preventive medicine and focus on educating patients to make healthy life choices. For more information on its facilities, partners and services, visit www.carepointhealth.org. CarePoint Health Systems Inc., doing business as Just Health Foundation, and its affiliates filed voluntary petitions for relief under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12534) on Nov. 3, 2024, with up to $1 million in assets and up to $50,000 in liabilities. Judge J. Kate Stickles oversees the cases. The Debtors tapped Dilworth Paxson LLP as legal counsel, Ankura Consulting as financial advisor, and Epiq Corporate Restructuring, LLC as claims and noticing agent and administrative advisor. CHERRY & CANDLEWOOD: Taps Shaw & Hanover PC as General Counsel -------------------------------------------------------------- Cherry & Candlewood Inc. seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire Shaw & Hanover, PC as general counsel. The firm's services include: a. advising and assisting the Debtor in complying with the requirements of the Office of the U.S. Trustee; b. conducting examinations of witnesses, claimants or adverse parties, and preparing related court documents; c. advising the Debtor regarding matters of bankruptcy laws, including its rights and remedies with respect to its assets and claims of its creditors; d. representing the Debtor in court proceedings or hearings; e. advising the Debtor concerning the requirements of the bankruptcy court, the Federal Rules of Bankruptcy Procedure, and the Local Bankruptcy Rules; f. filing legal papers to effectuate the Debtor's reorganization; g. reviewing claims filed in the Debtor's Chapter 11 case, and, if appropriate, preparing objections to disputed claims; h. representing the Debtor in litigation in the bankruptcy court; i. assisting the Debtor in the negotiation, formulation and implementation of a Chapter 11 plan; and j. providing other necessary legal services related to the bankruptcy case. Shaw & Hanover will be paid at these rates: Summer Shaw, Managing Attorney $620 per hour Alina Mamlyuk, Associate Attorney $495 per hour Teresa Stone, Paralegals $195 per hour Kyla Rist, Administrative Assistant $75 per hour The firm received a retainer in the amount of $25,000, plus some miscellaneous costs, for a total of $26,933. As disclosed in court filings, Shaw & Hanover is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Summer Shaw, Esq. Shaw & Hanover, PC 42-600 Cook Street, Suite 210 Palm Desert, CA 92211 Telephone No: (760) 610-0000 Facsimile No: (760) 687-2800 Email: ss@shaw.law 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 sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-19874) on December 3, 2024, with $1 million to $10 million in both assets and liabilities. Michael J. Long, chief executive officer, signed the petition. Judge Barry Russell handles the case. The Debtor is represented by Summer Shaw, Esq. at Shaw & Hanover, PC. CIMG INC: Delays Filing of Annual Report for Fiscal 2024 -------------------------------------------------------- CIMG Inc. filed a Form 12b-25 with the Securities and Exchange Commission regarding a delay in the filing of its Annual Report on Form 10-K for the period ended Sept. 30, 2024. The Company said it is in the process of preparing and reviewing the financial statements and other information to be included in its Annual Report on Form 10-K for the fiscal year ended Sept. 30, 2024, and does not expect the Annual Report will be finalized for filing by the prescribed due date without unreasonable effort or expense. The Company has not yet filed its Form 10-K for the fiscal year ended Sept. 30, 2023, and Form 10-Q for the fiscal quarter ended Dec. 31, 2023. About CIMG Inc. Headquartered in Vista, California, CIMG Inc. (formerly Nuzee, Inc.) is a digital marketing, sales and distribution company for various consumer products with focuses on food and beverages. Dedicated to reshaping the digital marketing and distribution with technological applications, the Company endeavors to create greater commercial value for its business partners and therefore enhance its own enterprise value and shareholders' value of their stake in the Company. The Company has a professional brand and marketing management system, which can quickly help partnering enterprises achieve the connection, management, and operation of marketing channels domestically and globally. "The Company has had limited revenues, recurring losses and an accumulated deficit. These items raise substantial doubt as to the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty," said Nuzee in its Quarterly Report for the period ended June 30, 2024. CMB DATA: Seeks to Use Cash Collateral -------------------------------------- CMB Data Entry Services, LLC asked the U.S. Bankruptcy Court for the Western District of Pennsylvania for authority to use cash collateral. There are two active UCC Financing Statements filed with the State of Pennsylvania with respect to the cash collateral assets of CMB that have not been terminated. The two recorded and active UCC Financing Statements with respect to the cash collateral assets of the company are as follows: a) File Number 2021082600385 filed on August 26, 2021 by U.S. Small Business Administration, which purports to establish a blanket security interest on all lienable assets of CMB. b) File Number 20241108258238 filed on November 8, 2024 by an unknown party but CMB believes that it was filed by Capfront LLC. The UCC purports to establish a blanket security interest on all lienable assets of CMB. CMB owes U.S. Small Business Administration approximately $1.5 million and the total scheduled assets of the company are valued at approximately $18,200. The company believes that SBA has first position on the cash collateral of the company and the debt to SBA encumbers the entirety of the cash collateral of the company. A court hearing is set for Jan. 8. About CMB Data Entry Services CMB Data Entry Services LLC, doing business as Axion Data Services, is a limited liability company. CMB Data Entry Services LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-23131) on December 27, 2024. In its petition, the Debtor reported up to $50,000 in assets and up to $10 million in liabilities. The Debtor is represented by Christopher M. Frye, Esq., at Steidl & Steinberg. COASTAL GREEN: Seeks to Hire Buddy D. Ford P.A. as Attorney ----------------------------------------------------------- Coastal Green Energy Solutions, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire Buddy D. Ford, P.A. as attorney. The firm will provide these services: a. analyzing the financial situation, and rendering advice and assistance to the Debtor in determining whether to file a petition under Title 11, United States Code; b. advising the Debtor with regard to the powers and duties of the debtor and as Debtor-in-Possession in the continued operation of the business and management of the property of the estate; c. preparing and filing of the petition, schedules of assets and liabilities, statement of affairs, and other documents required by the Court; d. representing the Debtor at the Section 341 Creditors' meeting; e. giving the Debtor legal advice with respect to its powers and duties as Debtor and as Debtor-in Possession in the continued operation of its business and management of its property; if appropriate; f. advising the Debtor with respect to its responsibilities in complying with the United States Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; g. preparing, on the behalf of your Applicant, necessary motions, pleadings, applications, answers, orders, complaints, and other legal papers and appear at hearings thereon; h. protecting the interest of the Debtor in all matters pending before the court; i. representing the Debtor in negotiation with its creditors in the preparation of the Chapter 11 Plan; and j. performing all other legal services for Debtor as Debtor-in-Possession which may be necessary herein, and it is necessary for Debtor as Debtor-in-Possession to employ this attorney for such professional services. The firm will be paid at these rates: Attorneys $450 per hour Senior associate $400 per hour Junior associate attorneys $350 per hour Senior paralegal $150 per hour Junior paralegal services $100 per hour The firm was paid a retainer in the amount of $16,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Buddy D. Ford, Esq., a partner at Buddy D. Ford, P.A., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Buddy D. Ford, Esq. Buddy D. Ford, P.A. 9301 West Hillsborough Avenue Tampa, FL 33615-3008 Tel: (813) 877-4669 Email: Buddy@tampaesq.com About Coastal Green Energy Solutions Coastal Green Energy Solutions, LLC is a privately held company that specializes in replacing windows and doors. Coastal Green Energy Solutions sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-07416) on December 17, 2024, with $155,350 in assets and $2,107,420 in liabilities. Saesha North, manager of Coastal Green Energy Solutions, signed the petition. Judge Roberta Colton presides over the case. Buddy D. Ford, Esq., at Buddy D. Ford, P.A. represents the Debtor as legal counsel. COGECO COMMUNICATIONS: DBRS Confirms BB(high) Issuer Rating ----------------------------------------------------------- DBRS Limited confirmed Cogeco Communications Inc.'s Issuer Rating of BB (high), Senior Secured Notes & Debentures credit rating of BBB (low) with a recovery rating of RR1, and Senior Unsecured Notes credit rating of BB (high) with a recovery rating of RR4. All trends are Stable. KEY CREDIT RATING CONSIDERATIONS The credit rating confirmations reflect Cogeco's stable operating performance over the last 12 months, in which EBITDA growth was modestly higher than expected and cash flow was materially stronger than anticipated. The confirmations also acknowledge the highly competitive U.S. market where the Company posted a net loss in subscriptions and continued debt-funded share repurchase activity that occurred earlier in the year. The Stable trends reflect Morningstar DBRS' forecast of flat earnings year over year as the Company continues to pursue its long-term, capital light mobile service offering in both the United States and Canada, while establishing an integrated operating platform in order to drive long-term growth and cross border synergies. CREDIT RATING DRIVERS Morningstar DBRS could take a positive credit rating action should Cogeco successfully expand its service offering and is able to deleverage in a manner that sustains core or non-acquisition-driven leverage below 3.0 times (x). Morningstar DBRS could take a negative credit rating action should wireline operating metrics deteriorate materially, the wireless service does not gain sufficient traction in the marketplace, and/or leverage moves structurally higher toward the 3.5x to 4.0x range. EARNINGS OUTLOOK In F2025, Morningstar DBRS expects Cogeco to expand its mobile offering as a mobile virtual network operator (MVNO) in the United States, where it is offering flexible wireless plans across the majority of its wireline footprint. In Canada, Cogeco has signed a five-year mobile virtual network operator agreement with a national incumbent and with Eastlink, and Morningstar DBRS anticipates the Company to launch a mobile offering in the Canadian market by the end of the year. Underlining the nascent growth in a mobile service offering, Cogeco is expected to continue to increase its subsidized fiber-to-the-home footprint expansion plans in both Canada and the U.S., which has represented a roughly 9% organic growth (i.e., 253,000 units) since F2022. Morningstar DBRS forecasts F2025 revenue to be essentially flat with a modest decline at Breezeline offset by growth at Cogeco Connexion. In F2026, Morningstar DBRS forecasts revenue growth to be modestly positive with growth in both the Canadian and U.S. markets primarily reflecting wireline rate increases, growth in the service footprint, and a mobile offering in both markets. Morningstar DBRS forecasts F2025 EBITDA to be essentially flat, as growth related to rate increases and internal operating efficiencies is expected to be offset by continued investment in the rollout of the mobile offering in Canada and the U.S. and invest in the cross-border transformation, before returning to modest growth in F2026. FINANCIAL OUTLOOK Morningstar DBRS forecasts Cogeco's financial profile to remain supportive of the current ratings. This view contemplates continued investment in Canada to support the launch and rollout of a mobile service, continued organic growth in both the U.S. and Canadian operating footprint, and the return of capital to shareholders primarily through dividends. We anticipate Morningstar DBRS free cash flow (i.e., after dividends, but before working capital changes) to range in the $250 million to $300 million range in F2025 and F2026. Cogeco's gross leverage is expected to decline modestly year over year in both F2025 and F2026, primarily reflecting debt repayment in F2025 and a combination of debt repayment and EBITDA growth in F2027, such that the Company should achieve its long-term net leverage target of low 3.0x during this period. CREDIT RATING RATIONALE The credit ratings consider the Company's established footprint in existing markets, the growth potential of the U.S. broadband and mobile services at Breezeline, and Cogeco's expected entry into the Canadian mobile market. The credit ratings also reflect intensifying competition in both the United States and Canada, the risks associated with technological and regulatory changes, and the resources required to develop a successful wireless offering. Notes: All figures are in Canadian dollars unless otherwise noted. COKING COAL: Hires Epiq Corporate as Claims and Noticing Agent -------------------------------------------------------------- Coking Coal LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Kentucky to hire Epiq Corporate Restructuring, LLC as claims and noticing agent. Epiq will oversee the distribution of notices and will assist in the maintenance, processing, and docketing of proofs of claim filed in the Chapter 11 cases of the Debtors. The firm will be paid at these hourly rates: Executive Vice President, Solicitation $190 Solicitation Consultant $190 Project Managers/Consultants/Directors $170 - $190 Case Managers $85 - $165 IT/Programming $55 - $80 In addition, the firm will seek reimbursement for expenses incurred. Sophie Frodsham, a senior director at Epiq, disclosed in court filings that her firm is "disinterested" as defined in Section 101(14) of the Bankruptcy Code. Epiq can be reached through: Sophie Frodsham Epiq Bankruptcy Solutions, LLC 777 Third Avenue, 12th Floor New York, NY 10017 Phone: (646) 282-2523 About Coking Coal Coking Coal LLC is an Appalachia, Va.-based coal mining company that produces metallurgical-grade coal used in iron smelting and steel fabrication. Coking Coal LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ky. Case No. 24-70529) on December 16, 2024. In its petition, the Debtor reports estimated assets between $50 million and $100 million and estimated liabilities between $100 million and $500 million. Judge Gregory R. Schaaf oversees the case. Ellen Arvin Kennedy, Esq., at Dinsmore & Shohl LLP serves as the Debtor's counsel. COLD SPRING: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Cold Spring Acquisition, LLC d/b/a Cold Spring Hills Center for Nursing & Rehabilitation 22 Pleasant Ridge Road Spring Valley NY 10977 Business Description: The Debtor operates a skilled nursing and rehabilitation facility in Woodbury, New York, with 588 beds. In particular, the Senior Care Facility provides hospice, dementia care, medical needs, as well as short- and long-term rehabilitation care. The Senior Care Facility also runs a senior day program. Chapter 11 Petition Date: January 2, 2025 Court: United States Bankruptcy Court Southern District of New York Case No.: 25-22002 Judge: Hon. Sean H Lane Debtor's Counsel: Schuyler G. Carroll, Esq. Russell E. Potter, Esq. Thomas A. Whittington, Esq. MANATT, PHELPS & PHILLIPS, LLP 7 Times Square New York, NY 10036 Tel: (212) 790-4500 Email: scarroll@manatt.com rpotter@manatt.com twhittington@manatt.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $50 million to $100 million The petition was signed by Martin A. Cauz as chief restructuring officer. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/K6HXFUA/Cold_Spring_Acquisition_LLC__nysbke-25-22002__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. 1199 National Ben. Fu Union Benefits $10,849,399 Attn: Laverne James/Jessica Apter 330 West 42nd Street New York, NY 10036 Email: japter@levyratner.com 2. 1199 National Pens, F Union Benefits $4,744,260 Attn: Laverne James/ Jessica Apter - Banking Unit 330 West 42nd Street New York, NY 10036 Email: japter@levyratner.com 3. American Health Benefit Trust Trade $3,780,340 Attn: Tammy Alanzo/Malkie 202 Caton Avenue Brooklyn, NY 11218 Email: talonso@eaglenorthllc.com; malkie@eaglenorthllc.com 4. Health Facility Assessment Trade $2,470,005 Fund Admin Attn: Jermoe Alaimo - Office of Pool Admin 333 Butternut Dr Syracuse NY 13214 Email: hfafdelinq@herapools.org 5. Specialty RX Inc. Trade $1,615,738 Attn: Shimon Rosenberg 2 Bergen Turnpike Ridgefeild Park, NJ 07660 Email: srosenberg@srxltc.com 6. Comprehensive Care Solutions LLC Trade $1,472,421 Attn: Mark Kalmanowitz 974 Rt 45, Suite 1200 Pomona, NY 10970 Email: mark@centralcareny.com 7. Garfunkel Wild, P.C. Professional Fees $1,128,874 Attn: Darrin Dowd 111 Great Neck Road Great Neck, NY 11021 Email: ddowd@garfunkelwild.com 8. Fresenius Medical Care Trade $596,060 Attn: Lacey Lawrence 16343 Collections Center Drive Chicago, IL 60693 Email: lacey.lawrence@freseniusmedicalcare.com 9. AMBMCS Consulting Inc. Trade $489,342 Attn: Ms. B. Bienenfeld 270 Sylvan Avenue, Suite 2260 Englewood Cliffs, NJ 07632 Email: ambmcs@gmail.com 10. KMK Associates Trade $477,520 Attn: Isaac Akerman 97 New Dorp Ln, Suite A Staten Island, NY 10306 Email: iakerman@icbsny.net 11. Graph MGA LLC Trade $470,122 Attn: Yair Zakai 270 Sylvan Ave, Suite 2260 Englewood Cliffs, NJ 07632 Email: yzakai@graphgroup.com 12. Ultracare of Manhattan Trade $451,937 Attn: Kass Abcede 800 2nd Avenue, Suite 380 New York, NY 10017 Email: kabcede@ultracareofmanhattan.com 13. Reliable Health Systems LLC Trade $414,902 Attn: Sindi Qirici 2610 Nostrand Avenue Brooklyn, NY 11210 Email: stotaram@reliablehealth.com 14. Five Star Staffing Services Trade $381,263 Attn: Joe Schlussel 117 Ditmas Ave Brooklyn, NY 11218 Email: joeschlussel@yahoo.com 15. AllState Administrators Trade $376,831 Attn: Tammy Alanzo/Malkie 202 Caton Avenue Brooklyn, NY 11218 Email: talonso@eaglenorthllc.com malkie@eaglenorthllc.com 16. Schwartz Sladkus Professional $305,334 Reich Greenberg Fees Attn: Rosie Soler 444 Madison Avenue New York, NY 10022 Email: rsoler@ssrga.com 17. Gallagher Bassett Services, Inc. Trade $248,533 Attn: Carmen D'Agostino PO Box 676141 Dallas, TX 75267 Email: carmen_dagostino@gbtpa.com 18. IV PICC Midline Service Trade $245,930 Attn: Ruth Tayag PO Box 783 Monsey, NY 10952 Email: ruth.tayag@ivpiccmid.com 19. Prudent Consulting Trade $243,461 Attn: Isaac Wiener 1040A Washington Ave Cedarhurst, NY 11516 Email: iwiener@excelsiorcaregroup.com 20. Milenia Health Benefit Trade $241,576 Attn: Tammy Alanzo/Malkie 202 Caton Avenue Brooklyn, NY 11218 Email: talonso@eaglenorthllc.com malkie@eaglenorthllc.com COLD SPRING: Seeks Chapter 11 Bankruptcy Protection in New York --------------------------------------------------------------- On January 2, 2025, Cold Spring Acquisition LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York. According to court filing, the Debtor reports between $50 million and $100 million in debt owed to 200 and 999 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Sec. 341(a) to be held on January 30, 2025 at 01:00 PM at Office of UST (TELECONFERENCE ONLY). About Cold Spring Acquisition LLC Cold Spring Acquisition LLC operates Cold Spring Hills Center for Nursing & Rehabilitation, a healthcare facility located in Spring Valley, New York. Cold Spring Acquisition LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22002) on January 2, 2025 In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $50 million and $100 million. Honorable Bankruptcy Judge Sean H. Lane handles the case. Russell E Potter and Schuyler Carroll of Manatt, Phelps & Phillips represent the Debtor as counsels. COLLECTIBLE SUPPLIES: Hires Focus CPA Group Inc as Accountant ------------------------------------------------------------- Collectible Supplies, Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Tennessee to employ Focus CPA Group, Inc as accountant. The firm will assist with the preparation of tax returns and possibly monthly operating reports. will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Amit Chandel, a partner at Focus CPA Group, Inc, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Amit Chandel Focus CPA Group, Inc. 3000 E Birch Street., Suite #103 Brea, CA 92821 Tel: (562) 281-1040 About Collectible Supplies, Inc. Collectible Supplies, Inc. is a company that specializes in providing a wide range of products and supplies tailored for collectors of various items, including sports cards, coins, stamps, and other collectibles. Collectible Supplies, Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No. 24-10884) with $1 million to $10 million in assets and $1 million to $10 million in liabilities. The petition was signed by Jeff Peterson as president. The Hon. Jimmy L. Croom oversees the case. The Debtor's counsel can be reached at: C. Jerome Teel Jr., Esq. TEEL & GAY, PLC 79 Stonebridge Blvd., Suite B Jackson, TN 38305 Tel: (731) 424-3315 Fax: (731) 424-3501 Email: jerome@tennesseefirm.com Counsel to Overton Funding, LLC: Erin Malone-Smolla, Esq. BRADLEY ARANT BOULT CUMMINGS, LLP 1221 Broadway, Suite 2400 Nashville TN 37202 Tel: (615) 252-2307 Fax: (615) 252-6307 E-mail: Esmolla@bradley.com - and - Shanna M. Kaminski, Esq. KAMINSKI LAW, PLLC P.O. Box 247 Grass Lake, MI 49240 Tel: (248) 462-711 E-mail: skaminski@kaminskilawpllc.com Counsel to LEAF Capital Funding, LLC: Kenneth D. Peters, Esq. Dressler & Peters, LLC 101 W. Grand Ave. Suite 404 Chicago IL 60654 E-mail: kpeters@dresslerpeters.com - and - David P. Canas, Esq. Campbell Perky Johnson PLLC 329 S. Royal Oaks Blvd, Suite No 205 Franklin, TN 37064 CONTAINER STORE: Chapter 11 Triggers $243-Mil. Debt Acceleration ---------------------------------------------------------------- The Container Store Group, Inc., disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on December 21, 2024, the Company and certain of its domestic subsidiaries entered into a Transaction Support Agreement with certain holders of over 90% of the total claims arising under the Company's senior secured term loan credit facility, and certain stockholders of the Company, including Green Equity Investors V, L.P., Green Equity Investors Side V, L.P. and TCS CO-INVEST LLC. In accordance with the terms of the Transaction Support Agreement, on December 22, 2024, the Debtors commenced voluntary cases under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division, providing for a court-administered reorganization pursuant to a prepackaged joint plan of reorganization. The Company's material relationships with certain parties are described under "Policies and Procedures for Related Person Transactions" beginning on page 52 of the Company's definitive proxy statement filed with the Securities and Exchange Commission on July 9, 2024. In accordance with the Transaction Support Agreement, the parties have agreed to support, approve, implement and enter into definitive documents to effect the transactions contemplated by the Plan, including a restructuring of the Company's outstanding debt. If confirmed by the Bankruptcy Court, the Plan would implement a series of transactions that would result in, among other things, all issued and outstanding shares of the Company's common stock being canceled and extinguished without consideration being provided to holders of such common stock. Following the effective date of the Plan and consummation of the transactions contemplated thereby, the Company has agreed to terminate its reporting obligations under the Exchange Act and intends to continue as a private company. Pursuant to the Transaction Support Agreement, the Debtors have agreed to use commercially reasonable efforts to meet several milestones in connection with the Chapter 11 Cases, including, among others; (a) having the Bankruptcy Court enter the order confirming the Plan no later than 34 calendar days following the Petition Date, and (b) consummating the transactions under the Plan and having the Plan Effective Date occur no later than 14 calendar days following the entry of the Confirmation Order. However, there can be no assurance that the foregoing milestones will be met on such dates, if at all. The Transaction Support Agreement also contains certain customary representations, warranties and other agreements by the parties thereto. The transactions contemplated by the Transaction Support Agreement, including the Plan Effective Date, are subject to and conditioned upon, among other things, approval of the Plan by the Bankruptcy Court. Additionally, subject to the approval of the Bankruptcy Court, the Company plans to enter into a replacement senior secured asset based revolving credit facility. The proceeds from the DIP ABL Credit Facility will be used to repay in full the outstanding claims arising under the Company's existing senior secured asset based revolving credit facility and cash collateralize all outstanding letters of credit thereunder, and, on the Plan Effective Date, the DIP ABL Credit Facility will convert into an exit senior secured asset based revolving credit facility pursuant to the terms of the DIP/Exit ABL Commitment Letter. * Commencement of Solicitation On December 21, 2024, in accordance with the Transaction Support Agreement, the Company commenced solicitation of the votes necessary to approve the Plan and effectuate the transactions contemplated thereby, including by distributing the Plan, a disclosure statement relating to the Plan, and other solicitation materials to certain holders of claims against the Company that are entitled to vote on the Plan. This Current Report is not an offer or a solicitation with respect to any securities or a solicitation of acceptances of a chapter 11 plan within the meaning of Section 1125 or Section 1126 of the Bankruptcy Code. Any such offer or solicitation will comply with all applicable securities laws and/or provisions of the Bankruptcy Code. * Voluntary Petitions for Bankruptcy On the Petition Date (i.e., December 22, 2024), the Debtors commenced the Chapter 11 Cases in the Bankruptcy Court in accordance with the terms of the Transaction Support Agreement. The Debtors have requested that the Chapter 11 Cases be jointly administered for procedural purposes only under the caption In re The Container Store Group, Inc., et al. The Debtors intend to continue to operate their businesses as "debtors-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. The Debtors are seeking approval of a variety of "first day" motions containing customary relief intended to facilitate the Debtors' ability to continue their ordinary course operations during the pendency of the Chapter 11 Cases. On the Petition Date, the Debtors also filed the Plan, which contemplates that all allowed general unsecured claims will be paid in full or otherwise be unimpaired. As a result, the Debtors expect to continue operating as normal, and do not expect customers, vendors, and other trade creditors to see any disruption in the Debtors' operations or business. Additional information about the Chapter 11 Cases, including access to Bankruptcy Court documents, is available online at https://www.veritaglobal.net/thecontainerstore, a website administered by Kurtzman Carson Consultants, LLC d/b/a Verita Global, a third-party bankruptcy claims and noticing agent. * Debtor-in-Possession Term Credit Agreement Subject to the approval of the Bankruptcy Court, the Debtors expect to enter into a Senior Secured Super-Priority Priming Debtor-in-Possession Term Loan Credit Agreement with the lenders named in the Form of Debtor-in-Possession Term Credit Agreement available at: https://tinyurl.com/mtn353ax If the DIP Term Credit Agreement is approved by the Bankruptcy Court as proposed, the DIP Term Lenders will provide a senior secured super-priority priming debtor-in-possession term loan credit facility in an aggregate principal amount of up to $115 million, consisting of: (i) $40 million in new money term loans and (ii) $75 million of outstanding claims under the Company's existing senior secured term loan credit facility converted and exchanged into term loans under the DIP Term Loan Facility. Borrowings under the DIP Term Loan Facility would be senior secured obligations of the Debtors, secured by a super-priority lien on the collateral under the DIP Term Loan Facility, which includes substantially all of the Debtors' assets, but subject to the collateral priorities set forth in the DIP Orders, the intercreditor agreement and other applicable loan and security documents. The DIP Term Credit Agreement contains various customary representations, warranties and covenants of the Debtors. All holders of claims arising under the Company's existing senior secured term loan credit facility have been (or will be) offered the opportunity to participate and fund their pro rata share of the DIP Term Loan Facility. To the extent any eligible holders do not elect to participate in the DIP Term Loan Facility and fund their pro rata share, certain of the Consenting Term Lenders have agreed to backstop and provide the DIP Term Loans based on such DIP Backstop Parties' pro rata holdings of Prepetition Term Loan Claims. The DIP Term Loan Facility matures on the earliest to occur of: (i) March 31, 2025, (ii) 11:59 p.m. New York City Time on the date that is three business days after the Petition Date if the Bankruptcy Court has not entered an order approving the DIP Term Loan Facility on an interim basis, (iii) 11:59 p.m. New York City Time on the date that is 34 days after the Petition Date if the Bankruptcy Court has not entered an order approving the DIP Term Loan Facility on a final basis, (iv) the Plan Effective Date, (v) termination of the Transaction Support Agreement, (vi) acceleration as a result of an event of default under the DIP Term Credit Agreement that is continuing, (vii) the date the Bankruptcy Court orders a conversion of the Chapter 11 Cases to a chapter 7 liquidation or the dismissal of the Chapter 11 Case of any Debtor, and (viii) the closing of a sale of all or substantially all of the assets of the Debtors. The First-Out DIP Term Loans will accrue interest at a rate of Term SOFR plus 6.50% per annum, payable monthly in cash, subject to a 2.00% Term SOFR floor; provided, that interest payable on First-Out DIP Term Loans up to 5.50% per annum may be paid in kind, in the form of additional First-Out DIP Term Loans. The Second-Out DIP Term Loans will accrue interest at a rate of Term SOFR plus 5.00% per annum, payable semi-annually in cash, subject to a 2.00% Term SOFR floor; provided, that interest payable on Second-Out DIP Term Loans up to 4.00% per annum may be paid in kind, in the form of additional Second-Out DIP Term Loans. The DIP Term Credit Agreement contains various customary events of default. If any amount owed under the DIP Term Loan Facility is not paid when due (regardless of any applicable grace periods), such overdue amounts will bear interest at the otherwise applicable rate, plus and an additional 2.0% per annum. Fees and expenses under the DIP Term Loan Facility include: (i) a put option premium equal to 5.0% of the aggregate amount of First-Out DIP Term Loans, payable in kind as additional First-Out DIP Term Loans to the DIP Backstop Parties in exchange for their agreement to backstop the DIP Term Loans, (ii) a commitment premium equal to 2.00% of the aggregate amount of commitments to fund the First-Out DIP Term Loans, payable in kind as additional First-Out DIP Term Loans to the lenders of the First-Out DIP Term Loans, and (iii) an equity premium to each holder of the First-Out DIP Term Loans, entitling such lender to receive its pro rata share of 64% of the new equity interests in the reorganized Company, subject to dilution on account of a new management incentive plan. The Equity Premium will be payable upon the Plan Effective Date, in accordance with the terms and conditions of the DIP Term Loan Facility and Plan. Accordingly, parties providing the DIP Term Loan Facility are expected to receive, subject to confirmation of the Plan and the occurrence of the Plan Effective Date, 64% in the aggregate of the common equity interests of the reorganized Company, with the holders of the Prepetition Term Loan Claims receiving the remaining 36% of the common equity interests of the reorganized Company, in each case subject to dilution by the management incentive plan to be adopted by the new board of directors or managers of the reorganized Company following the Plan Effective Date. * Debtor-in-Possession ABL Credit Agreement Subject to the approval of the Bankruptcy Court, the Debtors expect to enter into a Senior Secured Super-Priority Debtor-in-Possession Asset-Based Revolving Credit Agreement with Eclipse Business Capital SPV, LLC, the lenders in the DIP ABL Lenders, substantially available at: https://tinyurl.com/mtn353ax If the DIP ABL Credit Agreement is approved by the Bankruptcy Court as proposed, the DIP ABL Lenders will provide a super-priority senior secured debtor-in-possession asset based revolving credit facility in an aggregate principal amount of up to $140 million. Borrowings under the DIP ABL Credit Facility will be subject to a customary borrowing base for asset-based revolving facilities of this kind, and would be senior secured obligations of the Debtors, secured by a super-priority lien on the collateral under the DIP ABL Credit Facility, which includes substantially all of the Debtors' assets, but subject to the collateral priorities set forth in the DIP Orders, the intercreditor agreement and other applicable loan and security documents. The DIP ABL Credit Agreement contains various customary representations, warranties and covenants of the Debtors. Upon the Bankruptcy Court's approval of the DIP ABL Credit Agreement, the Debtors will use the proceeds from such facility to repay, in full, all outstanding amounts owed under, and to cash collateralize all outstanding letters of credit under (at 105% the face amount thereof), the Company's existing senior secured asset based revolving credit facility, and such facility will be terminated and of no further force and effect. The DIP ABL Credit Facility matures on the earliest to occur of: (i) 24 months from the Petition Date, (ii) the date of consummation of a sale and/or other disposition of all or substantially all of the working capital assets of the Company under section 363 of the Bankruptcy Code, (iii) 34 days after the Petition Date if the Bankruptcy Court has not approved the DIP ABL Credit Facility on a final basis, (iv) the effective date of a plan of reorganization filed in the Chapter 11 Cases that is confirmed pursuant to an order entered by the Bankruptcy Court and (v) the acceleration of the DIP ABL Loans and the termination of the commitments under the DIP ABL Credit Facility in accordance with the DIP ABL Credit Agreement. The DIP ABL Loans will accrue interest at a rate of Term SOFR plus 4.25% per annum, payable monthly in cash, subject to a 2.00% Term SOFR floor. The DIP ABL Credit Agreement contains various customary events of default. During the continuance of an event of default, all obligations under the DIP ABL Credit Facility will bear interest at the otherwise applicable rate, plus and an additional 2.0% per annum. Fees and expenses under the DIP ABL Credit Facility include (i) a closing fee equal to 1.25% of the aggregate amount of DIP ABL Loans and (ii) a 0.50% per annum fee equal to the daily unused portion of the maximum commitments under the DIP ABL Credit Facility. * Exit Facilities Agreements Subject to the approval of the Bankruptcy Court, the Debtors have also agreed to enter into an exit term loan credit agreement with the DIP Term Lenders on the Plan Effective Date, which will provide for: $115 million aggregate principal amount of exit term loans consisting of (a) first-out exit term loans (plus accrued interest and fees payable in kind, if any) comprised of converted First-Out DIP Term Loans in the same aggregate principal amount (plus accrued interest and fees payable in kind, if any) based on amounts outstanding under the DIP Term Loan Facility on the Plan Effective Date and (b) second-out exit term loans (plus accrued interest and fees payable in kind, if any) comprised of converted Second-Out DIP Term Loans in the same aggregate principal amount (plus accrued interest and fees payable in kind, if any) based on amounts outstanding under the DIP Term Loan Facility on the Plan Effective Date. In connection with that certain DIP/Exit ABL financing commitment letter, full-text copy of which is available at -- https://tinyurl.com/mtn353ax -- the Debtors, the DIP ABL Lenders and the Consenting Term Lenders have also agreed to exchange and convert the DIP ABL Credit Facility into an exit senior secured asset based revolving credit facility as contemplated in the Plan, the Transaction Support Agreement, and the DIP/Exit ABL Commitment Letter. The filing of the Chapter 11 Cases constitutes an event of default that accelerated obligations under the following material debt instruments and agreements: * approximately $163 million of term loan borrowings (plus any accrued but unpaid interest in respect thereof) under that certain Credit Agreement, dated as of April 6, 2012 (as amended, modified, extended, restated, replaced, or supplemented to date) among TCS, the guarantors party thereto, including the Company, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto; and * approximately $80 million of revolving borrowings (plus any accrued but unpaid interest in respect thereof, but excluding letters of credit issued and outstanding thereunder) under that certain Credit Agreement, dated as of April 6, 2012 as amended, modified, extended, restated, replaced, or supplemented to date) among TCS, the guarantors party thereto, including the Company, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and the lenders party thereto. The Debt Documents provide that, as a result of the Chapter 11 Cases, the principal and interest due thereunder will be immediately due and payable. Any efforts to enforce such payment obligations under the Debt Documents are automatically stayed as a result of the Chapter 11 Cases and the creditors' rights of enforcement in respect of the Debt Documents are subject to the applicable provisions of the Bankruptcy Code. About The Container Store Group The Container Store Group, Inc. is retailer with a solution oriented business and provides customers with custom spaces, organizing solutions, and in-home services. The Company conducts business in physical stores (with product offerings tailored based on store location and size) and online. Products are sourced both domestically and internationally and shipped to stores or customers from domestic distribution centers using contract carriers. The Debtors sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90627) on Dec. 22, 2024, with $969,204,000 in total assets as of Sept. 28, 2024 and $836,372,000 in total debts as of Sept. 28, 2024. Chad Coben, chief restructuring officer, signed the petitions. Judge Alfredo R. Perez presides over the case. The Debtors tapped HUNTON ANDREWS KURTH LLP and LATHAM & WATKINS LLP as legal counsel; HOULIHAN LOKEY CAPITAL, INC. as investment banker; and Verita Global (previously Kutzman Carson Consultants LLC) as claims, noticing & solicitation agent. CYNTHIA R. MURPHY: First Amended Plan of Reorganization Confirmed ----------------------------------------------------------------- Judge Frederick P. Corbit of the United States Bankruptcy Court for the Eastern District of Washington confirmed Cynthia R. Murphy and Christopher J. Rose's first amended plan of reorganization. This matter came before the Court for hearing on December 18, 2024 upon the issues raised by Debtors' request for confirmation of Debtors' First Amended Plan of Reorganization filed herein on October 28, 2024. Based upon the evidence produced, the Court now makes the following findings of fact: 1. The Debtors' Plan was submitted to Creditors and other parties in interest; 2. The Plan has been accepted in writing by the creditors and equity security holders whose acceptance is required by law; 3. The provisions of Chapter 11 of the United States Code have been complied with, the Plan has been proposed in good faith and not by any means forbidden by law; 4. (a) Each holder of a claim or interest has accepted the Plan or will receive or retain under the Plan property of a value, as of the effective date of the Plan, that is not less than the amount that such holder would receive or retain if the Debtors were liquidated under Chapter 7 of the Code on such date, or (b) the Plan does not discriminate unfairly, and is fair and equitable with respect to each class of claims or interests that is impaired under, and has not accepted the Plan; 5. All payments made or promised by the Debtors or by a person issuing securities or acquiring property under the Plan or by any other person for services or for costs and expenses in, or in connection with, the Plan and incident to the case, have been fully disclosed to the Court and are reasonable and are hereby approved, or, if to be fixed after confirmation of the Plan, will be subject to approval of the Court; 6. Confirmation of the Plan is not likely to be followed by the need for further financial reorganization of the Debtors, or (b) if the Plan is a plan of liquidation or partial liquidation, the Plan sets a time period in which liquidation will be accomplished, and provides for the eventuality that the liquidation is not accomplished in that time period; 7. Pursuant to the Plan, substantial consummation shall occur within sixty (60) days following Confirmation; 8. Creditors were given Notice of Confirmation and no objections thereto were made; and 9. It is proper that the Plan be confirmed. A copy of the Court's decision is available at https://urlcurt.com/u?l=MlkQFN Cynthia R. Murphy and Christopher J. Rose filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wash. Case No. 24-00217) on February 15, 2024, listing under $1 million in both assets and liabilities. The Debtor is represented by Kevin O'Rourke, Esq., at Southwell & O'Rourke, P.S. D DUNCAN FLORISTRY: Court Extends Use of Cash Collateral to Jan. 8 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Missouri extended D Duncan Floristry and Boutique, LLC's authority to use cash collateral until Jan. 8. The court approval came following the rescheduling of the hearing to Jan. 8. The extension order signed by Judge Brian Walsh on Jan. 3 approved the continued use of cash collateral pursuant to the terms of the first interim order issued on Dec. 30 last year. About D Duncan Floristry D Duncan Floristry and Boutique, LLC creates floral designs for weddings, anniversaries, funerals and birthdays. D Duncan sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mo. Case No. 24-10677) on December 12, 2024, with $1,098,900 in assets and $1,461,129 in liabilities. Dustin Duncan, company owner, signed the petition. Judge Brian C. Walsh oversees the case. David M. Dare, Esq., at Herren, Dare & Streett represents the Debtor as legal counsel. D. RUSSELL: Starts Subchapter V Bankruptcy Proceeding ----------------------------------------------------- On January 3, 2025, D. Russell Thomas, P.C., filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Tennessee. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About D. Russell Thomas, P.C. D. Russell Thomas, P.C. a professional corporation operating in Murfreesboro, Tennessee. D. Russell Thomas, P.C. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Case No. 25-00027) on January 3, 2025 In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Nancy B. King handles the case. Denis Graham (Gray) Waldron, Esq. of Dunham Hildebrand Payne Waldron, PLLC represents the Debtor as counsel. DIA INVESTMENT: Seeks Approval to Hire Silverman Law as Counsel --------------------------------------------------------------- DIA Investment Group LLC seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to hire Silverman Law PLLC as attorney. The firm will provide these services: a. give advice regarding the Debtor's rights, powers and duties in continuing to operate and manage its assets and business; b. prepare legal documents; c. advise the Debtor concerning, and prepare responses to, legal documents, which may be filed in its Chapter 11 case; d. advise the Debtor concerning the actions it might take to collect and recover property for the benefit of its estate; e. negotiate with creditors in connection with claims and Chapter 11 plan; f. review and object to claims; and g. perform all other legal services, which may be necessary or appropriate in the administration of the Debtor's Chapter 11 case. Mr. Silverman, the attorney handling the bankruptcy case will be paid at the rate of $400 per hour. Paraprofessionals will be paid $90 per hour. In addition, the firm will receive reimbursement for out-of-pocket expenses incurred. The retainer is $5,150. Brett Silverman, Esq., a partner at Silverman Law, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Brett S. Silverman, Esq. Silverman Law, PLLC 4 Terry Terrace Livingston, NJ 07039 Tel: (646) 779-7210 Email: Bsilverman@silvermanpllc.com About DIA Investment Group DIA Investment Group LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-21542) on November 20, 2024, with $500,001 to $1 million in both assets and liabilities. Brett Silverman, Esq., represents the Debtor as legal counsel. DIAMOND SPORTS: Emerges from Chapter 11 as Main Street Sports Group ------------------------------------------------------------------- Diamond Sports Group announced on January 02, 2025, that it has completed its financial restructuring and has emerged from Chapter 11 as Main Street Sports Group with a significantly deleveraged balance sheet. Main Street Sports emerges with a healthy capital structure and is well positioned, with valuable professional team rights across the MLB, NBA and NHL, to elevate the fan experience and drive incremental value for its team, league and distribution partners. The Main Street Sports rebrand marks a new era for the Company, which will continue to serve as a dedicated broadcast hub for local sports fans. The Company will continue to serve fans under the FanDuel Sports Network name, through its naming rights agreement with FanDuel for its 16 regional sports networks. The Company's Plan of Reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on November 14, 2024. The Plan received nearly unanimous support from its funded debt holders. Funds managed by PGIM Fixed Income, Hein Park Capital Management LP, Discovery Capital Management, Hudson Bay Capital Management LP, Alta Fundamental Advisers LLC and others, have received equity for their funded debt claims. Through its financial restructuring, Main Street Sports has reduced approximately $9 billion of pre-petition debt to $200 million and has a well-capitalized balance sheet. Since commencing Chapter 11 proceedings in March 2023, the Company has taken significant steps to strengthen its operational and financial performance and position itself for long-term success. In that time, the Company has resolved complex legal matters, completed its operational separation from Sinclair, and secured key go-forward agreements with its top team, league and distribution partners. Importantly, terms were also reached on prominent partnerships with Amazon's Prime Video and FanDuel that bolster the Company's platform and direct-to-consumer (DTC) offerings. David Preschlack, CEO of Main Street Sports, stated: "Emerging from this process is the culmination of over 20 months of incredibly hard work to transform our business and position us to better serve passionate local fans across our markets. I am deeply grateful to everyone who made this restructuring possible -- our new owners, partners, advisors, and especially our dedicated employees. With a stronger balance sheet, key partnerships, supportive new owners, we are modernizing our business to thrive in a changing media landscape." Main Street Sports Group, which does business as FanDuel Sports Network, is the broadcast home to 13 NBA teams, 8 NHL teams and 8 MLB teams, including: -- NBA: Atlanta Hawks, Charlotte Hornets, Cleveland Cavaliers, Detroit Pistons, Indiana Pacers, Los Angeles Clippers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Minnesota Timberwolves, Oklahoma City Thunder, Orlando Magic and San Antonio Spurs. -- NHL: Carolina Hurricanes, Columbus Blue Jackets, Detroit Red Wings, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues and Tampa Bay Lightning. -- MLB: Atlanta Braves, Los Angeles Angels, Miami Marlins, St. Louis Cardinals, Detroit Tigers, Tampa Bay Rays, Kansas City Royals and Milwaukee Brewers. About Main Street Sports Group Main Street Sports Group, LLC, formerly known as Diamond Sports Group, owns the FanDuel Sports Network Regional Sports Networks (RSNs), the nation's leading provider of local sports. Its 16 owned-and-operated RSNs include FanDuel Sports Network Detroit, FanDuel Sports Network Florida, FanDuel Sports Network Great Lakes, FanDuel Sports Network Kansas City, FanDuel Sports Network Indiana, FanDuel Sports Network Midwest, FanDuel Sports Network North, FanDuel Sports Network Ohio, FanDuel Sports Network Oklahoma, FanDuel Sports Network SoCal, FanDuel Sports Network South, FanDuel Sports Network Southeast, FanDuel Sports Network Southwest, FanDuel Sports Network Sun, FanDuel Sports Network West, and FanDuel Sports Network Wisconsin. The FanDuel Sports Network RSNs serve as the TV home to select MLB, NHL and NBA teams based in the United States. Main Street Sports Group also has a minority interest in the YES Network, the local destination for the New York Yankees and Brooklyn Nets. Main Street Sports Group's RSNs produce over 3,000 live local professional telecasts each year in addition to a wide variety of locally produced sports events and programs. About Diamond Sports Group Diamond Sports Group, LLC, and its affiliates own and/or operate the Bally Sports Regional Sports Networks, making them the nation's leading provider of local sports programming. DSG's 19 Bally Sports RSNs serve as the home for 42 MLB, NHL, and NBA teams. DSG also holds joint venture interests in Marquee, the home of the Chicago Cubs, and the YES Network, the local destination for the New York Yankees and Brooklyn Nets. The RSNs produce about 4,500 live local professional telecasts each year in addition to a wide variety of locally produced sports events and programs. DSG is an unconsolidated and independently run subsidiary of Sinclair Broadcast Group. Diamond Sports Group and 29 of its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90116) on March 14, 2023. In the petition signed by David F. DeVoe, Jr., as chief financial officer and chief operating officer, Diamond Sports Group listed $1 billion to $10 billion in both assets and liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP and Porter Hedges, LLP as bankruptcy counsel; Wilmer Cutler Pickering Hale, Dorr, LLP and Quinn Emanuel Urquhart & Sullivan, LLP as special counsel; AlixPartners, LLP as financial advisor; Moelis & Company, LLC and LionTree Advisors, LLC as investment bankers; Deloitte Tax, LLP, as tax advisor; Deloitte Financial Advisory Services, LLP, as accountant; and Deloitte Consulting, LLP as consultant. Kroll Restructuring Administration, 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 Akin Gump Strauss Hauer & Feld LLP as counsel; FTI Consulting, Inc., as financial advisor; and Houlihan Lokey Capital, Inc., as investment banker. DISCOVERY HILL: Court Okays Sale of Certain Properties for $3.3MM ----------------------------------------------------------------- Christopher J. Panos of the United States Bankruptcy Court for the District of Massachusetts granted the motion filed by Steven Weiss, the Chapter 7 trustee of the jointly administered cases of Mark W. Wisentaner and Discovery Hill LLC, for entry of order authorizing and approving sale of real estate free and clear of liens, claims and encumbrances. The Trustee seeks approval of the sale of 225 Discovery Hill Road, 190-R Discovery Hill Road, and 116-A Kiah's Way, Sandwich, Massachusetts to the Town of Sandwich for $3.3 million, free and clear of all liens, claims, interests, and encumbrances, pursuant to 11 U.S.C. Secs. 363(b) and (f). The only party in interest objecting to the Sale Motion is Wisentaner. The Trustee asserts that "at best" the Debtors have limited standing to oppose the sale because, among other things, they do not have a "demonstrable" pecuniary interest in the outcome because there will likely be no distribution to the Debtors under Sec. 726(a)(6) based on the value of the Properties established through the sale process and the liabilities of the estate necessary to pay to creditors. Wisentaner raises numerous objections to the proposed sale. His main objection with respect to all of the Properties is that the Trustee cannot meet his burden in exercising his business judgment to demonstrate that the proposed sale of the Properties to the Town of Sandwich for $3.3 million is in the best interest of the estates because, Wisentaner asserts, that the Properties are worth substantially more than that amount. In conjunction with the insufficient value argument, Wisentaner further argues that the sale should not be approved because the Trustee has not yet identified how the sale price is allocated among the parcels comprising the Properties. The Trustee received a "Letter of Intent to Purchase" from Wisentaner for $4,000,000 but argues that the offer does not qualify under the terms of sale. Wisentaner failed to provide the required $300,000 deposit and did not demonstrate his financial capacity to complete the sale. Additionally, the Trustee asserts that the offer contains contingencies and delays, reducing its value. The Trustee also notes that the Notice of Sale required any bid to be on the "same terms and conditions" as the proposed sale to the Town of Sandwich, but Wisentaner's offer includes multiple differing terms, including contingencies and a discharge condition, to which the Trustee has objected. Judge Panos finds that Wisentaner's 'Letter of Intent' is non-conforming and strike that 'offer.' Even if he had not stricken the offer by Wisentaner, the Trustee has made an assessment that the offer is frivolous. Upon review of the Letter of Intent, alternatively, he also finds that the Trustee's implicit assessment that the numerous contingencies in Wisentaner's offer reduce the value of that offer well below the sale price offered by the Town of Sandwich is supported by the record and is a reasonable exercise of his business judgment. He further finds that, notwithstanding the objections of Wisentaner, and even if he characterizes the statements in the Wisentaner Affidavit as his lay opinion of value, he finds that $3.3 million is fair value for the Properties under the circumstances presented in these cases. The sale process, as extended, was a fair and reasonable marketing process intended to obtain the best and highest offer under the circumstances. The sale was supported, or not objected to, by active creditors asserting significant claims against the estate. While it appears that the Properties have numerous development possibilities, no developers have submitted higher or better offers or expressed substantial interest in doing so. As such, the sale process has established the value of the Properties to the estates and justify the Trustee's sound and reasonable exercise of his business judgment, the Court finds. Wisentaner alleges that the sale process was not conducted in good faith and was intended to benefit the Trustee, the broker, the former counsel to the Debtors, who previously withdrew and who Wisentaner characterizes as a "friend of the Trustee," and the Town of Sandwich. Wisentaner also raised certain conflicts by counsel to South Dennis Acquisition Corporation. Judge Panos says after consideration of the record that the Trustee has acted in good faith and that he has properly exercised his business judgment. Further, based on the representations in the Sale Motion, subsequent filings in support, and at the Hearing, Judge Panos finds that the Town of Sandwich is a good faith purchaser as contemplated by Sec. 363(m)." He concludes that the Trustee has exercised reasonable business judgment and will approve the Sale Motion and the sale of the Properties to the Town of Sandwich by entry of a separate order after considering the allocation of the sale price that will be incorporated in proposed form of order to be submitted by the Trustee. Further, he will authorize the Trustee to exercise any necessary authority possessed by the estate to cause the Debtors and Kiah Discovery Hill Realty Trust to consummate the proposed sale to the Town of Sandwich. A copy of the Court's decision is available at https://urlcurt.com/u?l=XJwJ5r About Discovery Hill Mark W. Wisentaner and Discovery Hill LLC sought protection for relief under Chapter 11 of the Bankruptcy Court (Bankr. D. Mass. Lead Case No. 22-11487) on Oct. 18, 2022, listing under $1 million in both assets and liabilities. Peter M. Daigle, Esq. at The Law Office Of Peter M. Daigle, P. C. represents the Debtors as counsel. DNJ BLESSED: Seeks to Hire Calaiaro Valencik as Legal Counsel ------------------------------------------------------------- DNJ Blessed Enterprises, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to hire Calaiaro Valencik as counsel. The firm will provide these services: a. preparation of the bankruptcy petition and attendance at the meeting of creditors; b. representation of the Debtor in relation to negotiating an agreement on cash collateral; c. representation of the Debtor in relation to acceptance or rejection of executory contracts; d. advice regarding Debtor's rights and obligations during the Chapter 11 case; e. representation of the Debtor in relation to any motions to convert or dismiss this Chapter 11; f. representation of the Debtor in relation to any motions for relief from stay filed by any creditors; g. preparation of the Chapter 11 Plan and Disclosure Statements; h. preparation of any objection to claims in the Chapter 11; and i. otherwise, representation of the Debtor in general. The firm will be paid at these rates: Donald R. Calaiaro, Attorney/Partner $450 per hour David Z. Valencik, Attorney/Partner $375 per hour Andrew K. Pratt, Attorney/Partner $325 per hour Paralegals $100 per hour The firm received an initial retainer in the amount of $6,738. It will also be reimbursed for reasonable out-of-pocket expenses incurred. Donald R. Calaiaro, Esq., a partner at Law firm of Calaiaro Valencik, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Donald R. Calaiaro, Esq. Law firm of Calaiaro Valencik 938 Penn Avenue, 5th Fl. Suite 501 Pittsburgh, PA 15222 Tel: (412) 232-0930 Fax: (412) 232-3858 Email: dcalaiaro@c-vlaw.com About DNJ Blessed Enterprises, LLC DNJ Blessed Enterprises, LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-23040) on Dec. 16, 2024, listing up to $50,000 in assets and $50,001 to $100,000 in liabilities. Donald R. Calaiaro, Esq. at Calaiaro Valencik represents the Debtor as counsel. ECHOSTAR CORP: James DeFranco Quits From Unit's Board of Directors ------------------------------------------------------------------ Echostar Corporation disclosed in a Form 8-K filed with the Securities and Exchange Commission that on Dec. 24, 2024, Mr. James DeFranco submitted his resignation from the board of directors of DISH DBS Corporation, a subsidiary of the Company. The Company said Mr. DeFranco did not resign from such position as a result of any disagreement with DISH DBS relating to its operations, policies, or practices. Mr. DeFranco will continue to serve as a director of EchoStar Corporation. On Dec. 25, 2024, following the resignation of Mr. DeFranco as a director of DISH DBS, the board of directors of DISH DBS appointed Mr. Jeffrey H. Blum as a director of DISH DBS. Mr. Blum currently serves as the Executive Vice President (External and Government Affairs) of EchoStar Corporation and has been with DISH Network Corporation since 2005. About Echostar Headquartered in nglewood, Colorado, EchoStar Corporation is a holding company that was organized in October 2007 as a corporation under the laws of the State of Nevada. Its subsidiaries operate four primary business segments: (1) Pay-TV; (2) Retail Wireless; (3) 5G Network Deployment; and (4) Broadband and Satellite Services. Denver, Colorado-based KPMG LLP, the Company's auditor since 2002, issued a "going concern" qualificatin in its report dated Feb. 29, 2024, citing that the Company has debt maturing in 2024 and expects to use a substantial amount of cash in the next twelve months. This raises substantial doubt about its ability to continue as a going concern. EIGHT50 HOLDINGS: Seeks Chapter 11 Bankruptcy Protection -------------------------------------------------------- On January 3, 2025, Eight50 Holdings LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of California. 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. About Eight50 Holdings LLC Eight50 Holdings LLC is a limited liability company based in Santa Rosa, California. Eight50 Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-10004) on January 3, 2025 In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge William J. Lafferty handles the case. Arasto Farsad of Farsad Law Office, P.C. represents the Debtor as counsel. EIGHT50 HOLDINGS: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Eight50 Holdings, LLC 850 Sonoma Ave. Santa Rosa, CA 95404 Chapter 11 Petition Date: January 2, 2025 Court: United States Bankruptcy Court Northern District of California Case No.: 25-10004 Debtor's Counsel: Arasto Farsad, Esq. FARSAD LAW OFFICE, P.C. 1625 The Alameda, Suite 525 San Jose, CA 95126 Tel: 408-641-9966 E-mail: Farsadlaw1@gmail.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Perla S. Gutierrez as CEO and LLC Manager (sole member). 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/MSCITCQ/Eight50_Holdings_LLC__canbke-25-10004__0001.0.pdf?mcid=tGE4TAMA EMCORE CORP: Delays Filing of 2024 Annual Report ------------------------------------------------- EMCORE Corporation filed a Form 12b-25 with the Securities and Exchange Commission notifying the delay in the filing of its Annual Report on Form 10-K for the period ended Sept. 30, 2024. EMCORE previously announced a restructuring program that included the full closure of the Company's Alhambra, CA facility, headcount reductions and additional reductions in operating expenses. As previously disclosed, EMCORE entered into an Agreement and Plan of Merger by and among EMCORE, Velocity One Holdings, LP ("Parent"), Aerosphere Power Inc., and Velocity Merger Sub, Inc. ("Merger Sub") pursuant to which, subject to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into EMCORE, with EMCORE surviving the Merger and becoming an indirect wholly owned subsidiary of Parent. As a result of the Restructuring and Proposed Transaction and corresponding adjustments necessary to the financial statements, EMCORE was unable to complete its consolidated audited financial statement close process for the twelve-month period ended Sept. 30, 2024, and therefore unable to compile in a timely manner, without unreasonable effort or expense, the consolidated financial information required to prepare its Annual Report within the prescribed time period. The Company expects that the Form 10-K, along with the audited financial statements for the fiscal year ended Sept. 30, 2024, will be filed as soon as possible within the 15-calendar day extension period provided by Rule 12b-25. About Emcore Headquartered in Alhambra, California, EMCORE Corporation -- https://www.emcore.com/ -- is a provider of sensors and navigation systems for the aerospace and defense market. Over the last five years, EMCORE has expanded its scale and portfolio of inertial sensor products through the acquisitions of Systron Donner Inertial, Inc. in June 2019, the Space and Navigation business of L3Harris Technologies, Inc. in April 2022, and the FOG and Inertial Navigation Systems business of KVH Industries, Inc. in August 2022. The Company's multi-year transition from a broadband company to an inertial navigation company has now been completed following the sale of its cable TV, wireless, sensing and defense optoelectronics business lines and the shutdown of its chips business line and indium phosphide wafer fabrication operations. EMCORE stated in its Quarterly Report for the period ended June 30, 2024, "We are evaluating the sufficiency of our existing balances of cash and cash equivalents and cash flows from operations, together with additional actions we could take including further expense reductions and/or potentially raising capital through additional debt or equity issuances, or from the potential monetization of certain assets. However, we may not be successful in executing on our plans to manage our liquidity, including recognizing the expected benefits from our previously announced restructuring program, or raising additional funds if we elect to do so, and as a result substantial doubt about our ability to continue as a going concern exists." ENSERVCO CORP: Incurs $2.20 Million Net Loss in Third Quarter ------------------------------------------------------------- Enservco Corporation filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $2.20 million on $3.98 million of total revenues for the three months ended Sept. 30, 2024, compared to a net loss of $3.02 million on $2.62 million of total revenues for the three months ended Sept. 30, 2023. For the nine months ended Sept. 30, 2024, the Company reported a net loss of $3.79 million on $9.08 million of total revenues compared to a net loss of $6.57 million on $8.38 million of total revenues for the same period during the prior year. As of Sept. 30, 2024, the Company had $18.47 million in total assets, $14.87 million in total liabilities, and $3.60 million in total stockholders' equity. As of Sept. 30, 2024, the Company's available liquidity was $257,000, which was comprised of its cash and cash equivalents balance of $172,000 as well as $85,000 available under the LSQ Facility. Enservco said, "We believe that our available liquidity will not be sufficient to meet our current obligations for a period of twelve months from the date of the filing of this Quarterly Report on Form 10-Q. Accordingly, we have concluded that there is substantial doubt about our ability to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/319458/000143774924038529/ensv20240930_10q.htm About Enservco Enservco Corporation, through its wholly owned subsidiary, provides various services to the domestic onshore oil and natural gas industry. These services include hot oiling and acidizing and frac water heating. The Company owns and operates a fleet of specialized trucks, trailers, frac tanks and other well-site related equipment and serve customers in several major domestic oil and gas producing areas, including the Denver-Julesburg Basin ("DJ Basin")/Niobrara area in Colorado and Wyoming, the San Juan Basin in northwestern New Mexico, the Marcellus and Utica Shale areas in Pennsylvania and Ohio, the Jonah area, Green River and Powder River Basins in Wyoming, and the Eagle Ford Shale and East Texas Oilfield in Texas. The Company's corporate offices are located at 14133 County Road 9 1/2, Longmont, CO 80504. Its Web site is http://www.enservco.com/ ESTUARY OYSTERS: Claims to be Paid From Asset Sale Proceeds ----------------------------------------------------------- Estuary Oysters, LLC, submitted a Second Amended Plan of Reorganization for Small Business dated December 20, 2024. The Debtor filed this case to reorganize its financial affairs through either a traditional reorganization or a sale. On April 26, 2024, the Debtor obtained an Order allowing the Debtor to transfer its assets and operations to Stanish & Minter Oyster Company, LLC. The Debtor's plan will distribute the proceeds of the sale to the creditors and provide for the termination of the business of the Debtor. This Plan of Reorganization proposes to pay creditors of the Debtor from the proceeds of the sale of its assets and operations or from the future cash flow of the business from continued operations. This Plan provides for 1 Class of Priority Claims; 1 Class of Secured Claims; 1 Class of non-priority Unsecured Claims; and 1 Class of Equity Security Holders. Non-Priority unsecured creditors holding allowed claims will not receive distributions. This Plan also provides for the payment of administrative and priority claims. Class 4 consists of Equity Security Holders. Class 4 is impaired under this Plan. The class 4 holders will not receive any distributions until the Debtor has fulfilled its obligations to Classes 1 to 3 holders. The Debtor sold all of its property pursuant to the Sale Order to Stanish & Minter Oyster Company, LLC. Accordingly, the Debtor owns no real or personal property. The Debtor will implement this Plan by distributing the sale proceeds in accordance with this Plan. A full-text copy of the Second Amended Plan dated December 20, 2024 is available at https://urlcurt.com/u?l=kuNZWP from PacerMonitor.com at no charge. Attorney for the Debtor: Michael H. Moody, Esq. MICHAEL H. MOODY LAW, PA 1881A Northwood Center Blvd. Tallahassee, FL 32303 Telephone: (850) 739-6970 Email: Michael.Moody@MichaelHMoodyLaw.com About Estuary Oysters Estuary Oysters, LLC was the operator of a marina, oyster processing facility, and oyster farming operation in Spring Creek, Florida. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 23-40469) on Dec. 1, 2023, with $100,001 to $500,000 in both assets and liabilities. Judge Karen K. Specie oversees the case. Michael Moody, Esq., at Michael H. Moody Law, P.A., is the Debtor's bankruptcy counsel. EYENOVIA INC: Amends Sales Pact to Appoint Chardan as Sales Agent ----------------------------------------------------------------- Eyenovia, Inc., disclosed in a Form 8-K filed with the Securities and Exchange Commission that on Dec. 30, 2024, the Company entered into an Amended and Restated Sales Agreement with Chardan Capital Markets, LLC, as agent, which has been acknowledged and agreed by Leerink Partners LLC, with respect to the Company's existing at-the-market offering program with an aggregate offering price of up to $50,000,000 of shares of common stock, par value $0.0001 per share, of the Company. The A&R Sales Agreement amends and restates that certain Sales Agreement, dated Dec. 14, 2021, by and between the Company and Leerink Partners to, among other things, replace Leerink Partners with Chardan as sales agent. The Company sold an aggregate of $16,413,443 of shares of Common Stock under the Initial Sales Agreement. The Company will file a prospectus supplement relating to the offer and sale of the Common Stock pursuant to the A&R Sales Agreement, which will form a part of the Company's Registration Statement on Form S-3 (File No. 333-282458), which was filed with the SEC on Oct. 1, 2024 and declared effective on Oct. 8, 2024. Subject to the terms and conditions of the A&R Sales Agreement, Chardan may sell shares of Common Stock by any method permitted by law deemed to be an "at the market offering" as defined in Rule 415(a)(4) of the Securities Act of 1933, as amended. Chardan will use commercially reasonable efforts to sell the Common Stock from time to time, based upon instructions from the Company (including any price, time or size limits or other customary parameters or conditions the Company may impose). The Company will pay Chardan a commission equal to 3.0% of the gross sales proceeds of any Common Stock sold through Chardan under the A&R Sales Agreement. The Company is not obligated to make any sales of Common Stock under the A&R Sales Agreement. The offering of Common Stock will terminate upon the earlier of (i) the sale of all Common Stock subject to the A&R Sales Agreement or (ii) termination of the A&R Sales Agreement in accordance with its terms. The A&R Sales Agreement contains customary representations, warrantees and agreements between the Company and Chardan, including customary indemnification rights, including for liabilities under the Securities Act. The representations, warranties and covenants contained in the A&R Sales Agreement were made only for purposes of such agreement and as of specific dates and were solely for the benefit of the parties to such agreement. About Eyenovia Headquartered in New York, NY, Eyenovia, Inc. -- http://www.eyenovia.com/-- is an ophthalmic technology company developing and commercializing advanced products leveraging its proprietary Optejet topical ophthalmic medication dispensing platform. The Optejet is especially useful in the treatment of chronic front-of-the-eye diseases due to its ease of use, enhanced safety and tolerability, and potential for superior compliance versus standard eye drops. Together, these benefits may combine to produce better treatment options and outcomes for patients and providers. The company's pre-NDA candidate, MicroPine, is being developed for pediatric progressive myopia, a global epidemic impacting hundreds of millions of children worldwide and representing a multi-billion-dollar addressable market. The company's current commercial portfolio includes clobetasol propionate ophthalmic suspension, 0.05%, for post-surgical pain and inflammation, and Mydcombi for mydriasis. Eyenovia has also secured licensing and development agreements for additional multi-billion-dollar indications where the Optejet may be advantageous, including dry eye. "As of September 30, 2024, the Company had unrestricted cash and cash equivalents of approximately $7.2 million and an accumulated deficit of approximately $175.4 million. For the nine months ended September 30, 2024 and 2023, the Company incurred net losses of approximately $29.9 million and $19.3 million, respectively, and 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 from the date that these financial statements are issued," Eyenovia stated in its Quarter Report for the period ended Sept. 30, 2024. FAMILY SOLUTIONS: Hires Waldrep Wall Babcock as Special Counsel --------------------------------------------------------------- Family Solutions of Ohio, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to employ Waldrep Wall Babcock & Bailey PLLC as special counsel. The firm will pursue preference payments and any potential fraudulent conveyances of estate property relating to insiders of the Debtor, as defined in 11 U.S.C. Sec. 101(31) and pursue any Chapter 5 preference actions against creditors who received payment in the 90 days before petition date. The firm will be paid at an hourly rate of $425. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Ciara Rogers, Esq., a partner at Waldrep Wall Babcock & Bailey PLLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Ciara L. Rogers, Esq. WALDREP WALL BABCOCK & BAILEY PLLC 3600 Glenwood, Suite 210 Raleigh, NC 27612 Phone: (984) 480-2005 Email: crogers@waldrepwall.com About Family Solutions of Ohio, Inc. Family Solutions of Ohio, Inc. in Wake Forest, NC, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. E.D.N.C. Case No. 24-03043) on September 5, 2024, listing as much as $1 million to $10 million in both assets and liabilities. John Hopkins Jr. as vice president, signed the petition. Judge Pamela W Mcafee oversees the case. HENDREN, REDWINE & MALONE, PLLC serve as the Debtor's legal counsel. FINGER LAKE: Seeks Bankruptcy Protection in New York ---------------------------------------------------- On January 4, 2025, Finger Lake LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of New York. According to court filing, the Debtor reports between $50,000 and $100,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Finger Lake LLC Finger Lake LLC is an accommodation and food services business operating in Horseheads, New York. Finger Lake LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.N.Y. Case No. 25-20007) on January 4, 2025 In its petition, the Debtor reports estimated assets and liabilities between $50,000 and $100,000 each. Kevin Tung, Esq. of Kevin Kerveng Tung, P.C. represents the Debtor as counsel. FIRST MODE: Unsecureds Will Get 100% of Claims in Joint Plan ------------------------------------------------------------ First Mode Holdings, Inc., and Synchronous LLC filed with the U.S. Bankruptcy Court for the District of Delaware a Disclosure Statement for Joint Chapter 11 Plan dated December 22, 2024. Debtor First Mode, a Delaware limited liability company, is owned by (a) AATS (holding approx. 81.4% of outstanding equity); and (b) certain individual shareholders (holding approx. 18.6% of outstanding equity), which includes eleven (11) founders of the Company. Debtor Synchronous LLC, a Washington limited liability company, is a wholly-owned subsidiary of First Mode. First Mode is managed by a board of directors and Synchronous is managed by its direct Debtor parent, First Mode. On December 15, 2024, the Debtors entered into that certain Asset Purchase Agreement with Cummins Inc. ("Cummins" or the "Stalking Horse Bidder" and the Asset Purchase Agreement, the "Stalking Horse APA"). The Stalking Horse APA provides that the Stalking Horse Bidder will purchase the majority of the Debtors' assets, along with various assets of certain non-Debtor affiliates, for a purchase price of $15 million, plus the assumption of certain Assumed Liabilities. Importantly, the Stalking Horse APA also contemplates that a significant number of the Company's employees will transition to Cummins following consummation of the sale. Pursuant to the bidding procedures outlined in the Bidding Procedures Motion, the Debtors intend to continue marketing the Debtors' assets, with the goal of holding an auction that will enable a competitive process that maximizes the value of such assets. Concurrently with the Stalking Horse APA, the Debtors entered into that certain Restructuring Support Agreement (the "RSA") with Anglo American International Holdings Limited ("AAIH" or "Prepetition Secured Lender" or "DIP Lender") and Anglo American Technical & Sustainability Ltd ("AATS"). The RSA provides, among other things, for the Debtors to complete the sale to the Stalking Horse Bidder, or another bidder that submits a higher or otherwise better bid, and pursue confirmation of the Plan. The Plan is a liquidating plan that contemplates a monetary contribution by Anglo American and a consensual subordination of its claims. The Plan is premised on the consummation of a value maximizing sale followed by an efficient and orderly wind-down of the estates. The material terms of the Plan include, among others, the following: * Subject to the terms and conditions outlined in the Plan and the RSA, Anglo American will provide $28,870,592, subject to adjustment as set forth in the Plan (the "Anglo Funding Amount") to the Debtors to fund distributions to holders of Allowed Claims under the Plan and the wind down of the Debtors. * Anglo American's DIP Claims and Prepetition Secured Lender Claims will be subordinated as and to the extent provided in the Plan. Specifically, Anglo American is not expected to receive a recovery on account of these Claims, other than from the sale proceeds, unless all Allowed General Unsecured Claims of Participating GUC Holders are to be paid in full. * Holders of General Unsecured Claims will receive a pro rata share of the Distributable Proceeds if they vote in favor of the Plan and are Participating GUC Holders. The estimated recovery for Participating GUC Holders is 100%. * Holders of Equity Interests will receive no distribution on account of their Equity Interests. On the Effective Date, all Equity Interests will be canceled and extinguished and will be of no further force or effect. * The Debtors and the Releasing Parties will release the Released Parties from various claims and causes of action, as set forth in the Plan. * Pursuant to the Plan Administration Agreement,5 the Plan Administrator will, among other things, oversee the administration process of the Plan, which will provide for the wind down of the Debtors. Class 4 consists of General Unsecured Claims. As soon as reasonably practicable after the Effective Date, except to the extent that a Holder of an Allowed General Unsecured Claim agrees to less favorable treatment for such Allowed General Unsecured Claim: * each Participating GUC Holder shall receive the lesser of (a) payment in full in cash; and (b) its pro rata share of Distributable Proceeds; and * each Non-Participating GUC Holder shall receive no consideration on account of its General Unsecured Claims. Class 4 is either Unimpaired or Impaired and Holders of Class 4 General Unsecured Claims are entitled to vote to accept or reject this Plan. The allowed unsecured claims total $25,900,000. This Class will receive a distribution of 100% of their allowed claims. Class 7 consists of all Equity Interests. Holders of Equity Interests shall receive no distribution on account of their Equity Interests. On the Effective Date, all Equity Interests will be canceled and extinguished and will be of no further force or effect. The Debtors shall fund distributions under this Plan with Cash on hand, the Anglo Funding Amount, the proceeds of all non-Cash assets of the Debtors’ Estates, and any proceeds of retained Causes of Action of the Estates. A full-text copy of the Disclosure Statement dated December 22, 2024 is available at https://urlcurt.com/u?l=B0M9Mx from Omni Agent Solutions Inc., claims agent. Proposed Counsel for the Debtors: Kara Hammond Coyle, Esq. Michael R. Nestor, Esq. Joseph M. Mulvihill, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, DE 19801 Tel: (302) 571-6600 Fax: (302) 571-1253 E-mail: kcoyle@ycst.com mnestor@ycst.com jmulvihill@ycst.com Ray C. Schrock, Esq. Annemarie V. Reilly, Esq. Brian S. Rosen, Esq. LATHAM & WATKINS LLP 271 Avenue of the Americas New York, NY 10020 Tel: (212) 906-1200 Fax: (212) 751-4864 E-mail: ray.schrock@lw.com annemarie.reilly@lw.com brian.rosen@lw.com - and - Caroline Reckler, Esq. 330 North Wabash Avenue, Suite 2800 Chicago, IL 60611 Tel: (312) 876-7700 Fax: (312) 993-9767 E-mail: caroline.reckler@lw.com - and - Jeffrey T. Mispagel, Esq. 355 South Grand Avenue, Suite 100 Los Angeles, CA 90071 Tel: (213) 485-1234 Fax: (213) 891-8763 E-mail: jeffrey.mispagel@lw.com About First Mode First Mode is a multinational decarbonization company that designs, manufactures, and distributes hybrid battery systems and hydrogen fuel cell technologies for heavy duty mining and rail vehicles, along with hydrogen refueling equipment. First Mode Holdings, Inc. and Synchronous LLC filed for voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del., Lead Case No. 24-12794) on December 15, 2024. In their petitions signed by Colin Mark Freed as chief financial officer, the Debtors reported estimated consolidated assets of $10 million to $50 million and estimated consolidated liabilities of $50 million to $100 million. The Hon. Judge Karen B. Owens oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor, LLP, as bankruptcy counsel and Latham & Watkins LLP as bankruptcy co-counsel. PJT Partners serves as investment banker to the Debtors, while M3 Partners LP acts as financial advisor. Omni Agent Solutions Inc is the claims and noticing agent for the Debtors. FLORIDA MONSTER: Seeks Chapter 11 Bankruptcy Protection ------------------------------------------------------- Sarah Kinbar of Orlando Business Journal reports that Vines Grille & Wine Bar, a prominent upscale restaurant on Orlando's Restaurant Row, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Middle District of Florida. According to the report, the filing, submitted by attorney Justin Luna on December 17, 2024, aims to keep the restaurant operational while it explores restructuring options, including securing investors and business partners. Operating under the legal name Florida Monster Chef LLC, Vines has struggled with rising costs for food, labor, and equipment, alongside a sharp drop in revenue. The restaurant, located at 7533 W. Sand Lake Road since 2003, has been owned by Jayson Lopez (80%) and Shaun Carrero (20%) since 2017. Luna revealed that several potential partners have already expressed interest, and the restaurant is also considering relocating. "The city of Orlando has been offering incentives for Sand Lake Road restaurants to move downtown, although no decision has been made in this case," he noted. Gross revenue fell from $3.8 million in 2023 to $1.7 million in 2024. Industry veteran Jonathan Smiga, who has experience with Darden, Barnie's, and the Culinary Institute of America, attributed some of the difficulties to its location. "The restaurant is tucked away and can get lost among the competition," Smiga said. To survive, Smiga advised that Vines must redefine its brand identity. "They need to clarify their purpose and value. If they closed, would people miss it? Where would customers go instead?" he questioned. Debt Obligations and Assets According to Orlando Business Journal, Vines owes $70,000 in back rent to landlords Core Fountains, LLC and MDC Fountains, LLC, who have initiated lawsuits to enforce the lease. The restaurant also faces $138,000 in unpaid taxes, contributing to total liabilities exceeding $1 million. This includes $185,000 in secured debt tied to restaurant equipment and approximately $200,000 in unsecured claims, such as credit card and merchant cash advance loans. The company's assets total around $520,000, including $12,500 in cash, $53,000 in accounts receivable, $144,500 in food and beverage inventory, $100,000 in restaurant equipment, and $210,000 in furnishings, fixtures, and software, the report states. The restaurant employs 39 staff members, who will continue to receive wages following a court-approved request to cover pre-bankruptcy payroll, according to report. A creditors' meeting is scheduled for January 22, 2025, with a reorganization plan due by March 17, 2025. As Vines Grille & Wine Bar navigates this challenging period, it faces a pivotal moment to revamp its strategy and secure its place in Orlando’s competitive dining scene. About Florida Monster Chef LLC Florida Monster Chef LLC owns and operates Vines Grille& Wine Bar restaurant in Florida. Florida Monster Chef LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06830) on December 17, 2024. In its petition, the Debtor reports estimated assets and liabilities between $500,000 and $1 million each. Honorable Bankruptcy Judge Tiffany P. Geyer presides over the case. Justin M Luna of Latham, Luna, Eden & Beaudine, LLP represents the Debtor as counsel. FLYWHEEL ADVANCED: Delays Filing of Fiscal 2024 Annual Report ------------------------------------------------------------- Flywheel Advanced Technology, Inc. disclosed in a Form 12b-25 filed with the Securities and Exchange Commission that it is unable to file its Annual Report on Form 10-K for the fiscal year ended Sept. 30, 2024, without unreasonable effort or expense. The Company needs additional time to complete certain disclosures and analyses to be included in the Report. In accordance with Rule 12b-25 promulgated under the Securities Exchange Act of 1934, as amended, the Company intends to file its Report on or prior to the 15th calendar day following the prescribed due date. On July 5, 2024, the Company entered into a share purchase agreement with Mericorn Company Limited, to sell all of the equity associated with the Company's wholly owned subsidiary, Mega Fortune, which is comprised of the Company's subsidiaries, Ponte Fides Company Limited, QBS System Limited and QBS System Pty Ltd at consideration of HK$56,360,000 (or approximately $7,230,000) by the transfer of 938 shares of Mericorn's wholly owned subsidiary, Elison Virtus Company Limited from Mericorn to the Company which the Company will hold approximately 10% of the equity of Elison. As a result of the above share transfer, the Company recognized a pre-tax gain on such sale of $3,744,415. About Flywheel Advanced Carson City, Nev.-based Flywheel Advanced Technology, Inc. (formerly known as Pan Global Corp.) provides Internet of Things ("IoT") solutions and services to assist its clients to build applications using available IoT devices, sensors, frameworks, and platforms, integrate hardware and software solutions with clients existing landscape, or implement new IoT solutions for enterprises. "Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company's ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. Recently the Company being funded by our related company, Flywheel Financial Strategy (Hong Kong) Company Limited, who has extended interest-free demand loans to the Company. There can be no assurances that our related company will continue to fund the Company, or that the Company can obtain any other sources of financing," the Company said in its Quarterly Report on Form 10-Q for the period ended June 30, 2024. FRESHQUITA BRANDS: Files Chapter 7 Bankruptcy in Texas ------------------------------------------------------ Bill Zentner of bluebook reports that on December 24, 2024, Freshquita Brands, LLC, headquartered in McAllen, Texas, submitted a voluntary Chapter 7 bankruptcy petition in the United States Bankruptcy Court for the Southern District of Texas, under case number 24-70288. According to the report, the petition reveals that the estimated number of creditors is between 50 and 99. The estimated assets are reported to range from $100,000 to $500,000, while the liabilities are between $1 million and $10 million. The petition further states that "after administrative expenses are settled, no funds will be available for distribution to unsecured creditors." The first creditors' meeting will take place on February 21, 2025, at 10:00 AM via Zoom. The meeting ID is 226 275 2576, with passcode 329223765, or participants can call 956-597-3216. The attorney managing the case is Christopher Phillippe from the Law Offices of Phillippe & Associates. About Freshquita Brands LLC Freshquita Brands LLC is a limited liability company. Freshquita Brands LLC sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-10222) on December 24, 2024. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Eduardo V. Rodriguez presides over the case. Christopher Lee Phillippe of Law Offices Of Phillippe & Associates represents the Debtor as counsel. FTX TRADING: Celsius Network Appeals $444-Mil. Claims Rejection --------------------------------------------------------------- Angelica Serrano-Roman of Bloomberg Law reports that Celsius Network LLC's litigation administrator has appealed a bankruptcy court's dismissal of $444 million in preference claims against the collapsed crypto exchange FTX Trading Ltd. The appeal, filed on December 31, 2024, comes after Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware ruled on December 18, 2024 that Celsius failed to provide sufficient details to support the claims and improperly submitted amendments, according to the report. About FTX Trading Ltd. FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10 showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The official committee of unsecured creditors tapped Paul Hastings as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as Delaware and conflicts counsel; FTI Consulting, Inc. as financial advisor; and Jefferies, LLC as investment banker. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. GARUDA HOTELS: Trustee Taps Pyramid Brokerage as Real Estate Broker ------------------------------------------------------------------- Jeffrey A. Dove, the Trustee for Garuda Hotels, Inc., seeks approval from the U.S. Bankruptcy Court for the Northern District of New York to employ Pyramid Brokerage Company of Binghamton, Inc. as real estate broker. The firm will market and sell the Debtor's real properties known as 1100 Danby Road, Ithaca, New York, where it owns and operates a two-story, 58- room limited services Country Inn and Suites by Radisson Hotel that opened in 2008; and at 2303 North Triphammer Road, Ithaca, New York where it owns and operates a two-story, 72-room limited services Econo Lodge Hotel that opened in 1987. The firm will be paid at a commission of 3 percent of the purchase price. David G. Huckle, a partner at Pyramid Brokerage Company of Binghamton, Inc., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: David G. Huckle Pyramid Brokerage Company of Binghamton, Inc. 84 Court St. #300 Binghamton, NY 13901 Tel: (607) 754-5990 About Garuda Hotels, Inc. Garuda Hotels, Inc. is the operator of a Country Inn and Suites Hotel and owns the real property upon which the hotel is located at 110 Danby Road, Ithaca, NY. Welcome Motels II, Inc. is the operator of an Econolodge Hotel and owns the real property upon which the hotel is located at 2303 Triphammer Road, Ithaca, NY. Garuda Hotels, Inc. and Welcome Motels II, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case Nos. 22-30296 and 22-30296) on May 13, 2022. In the petitions signed by Jay Bramhandkar, their president, each of the Debtors disclosed up to $10 million in both assets and liabilities. Judge Wendy A. Kinsella oversees the cases. Erica Aisner, Esq., at Kirby Aisner & Curley LLP is the Debtors' counsel. GAVIN SPANIERMAN: Starts Subchapter V Bankruptcy Proceeding ----------------------------------------------------------- On January 3, 2025, Gavin Spanierman Ltd. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York. According to court filing, the Debtor reports up to $50,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Gavin Spanierman Ltd. Gavin Spanierman Ltd. is operating as Spanierman Modern, an art gallery located at 958 Madison Avenue in New York City. Gavin Spanierman Ltd. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10005) on January 3, 2025 In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities up to $50,000. Eric Zabicki, Esq. of Pick & Zabicki LLP represents the case as counsel. GENEVER HOLDINGS: Trustee Taps Kobre & Kim as Special Counsel ------------------------------------------------------------- Luc Despins, the trustee appointed in the Chapter 11 case of Genever Holdings Corp.'s owner Ho Wan Kwok, seeks approval from the U.S. Bankruptcy Court for the District of Connecticut to employ Kobre & Kim (GCC) LLP as special counsel in the UAE. Kobre & Kim will assist the trustee in the investigation of assets and transfers connected to the Debtor that may be located in the UAE. Kobre & Kim's will bill these hourly rates: Lawyers $950 to $1,875 Paraprofessionals $450 to $875 Kobre & Kim provide the following response to the request for information set forth in Paragraph D.1. of the Larger Case Guidelines: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Answer: No. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Answer: Not applicable. Kobre & Kim has not previously represented the Chapter 11 Trustee. Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Answer: Not applicable. Paul Hughes, a partner at Kobre & Kim, assured the court that his firm is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code, as modified by section 1107(b). The firm can be reached through: Paul Hughes, Esq. Kobre & Kim (GCC) LLP 27-01, Level 27 ICD Brookfield DIFC Dubai, UAE Tel: +971 4 454 3903 Email: paul.hughes@kobrekim.com About Genever Holdings Genever Holdings, LLC is the owner of the entire 18th floor apartment and auxiliary units in the Sherry Netherland Hotel located at 781 Fifth Ave., N.Y. Genever Holdings, LLC filed its voluntary petition for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 20-12411) on Oct. 12, 2020, with $50 million to $100 million in both assets and liabilities. On Nov. 4, 2022, the case was transferred to the U.S. Bankruptcy Court for the District of Connecticut and was assigned a new case number (Case No. 22-50592). Ho Wan Kwok, owner of Genever Holdings, LLC's parent, Genever Holdings Corporation, sought Chapter 11 protection (Bankr. D. Conn. Case No. 22-50073) on Feb. 15, 2022, with $50,001 to $100,000 in assets and $100 million to $500 million in liabilities. According to Reuters, Ho Wan Kwok, also known as Guo Wengui, was a former real estate magnate who fled China for the U.S. in 2014 ahead of corruption charges. He filed for bankruptcy after a New York court ordered him to pay lender Pacific Alliance Asia Opportunity Fund $254 million stemming from a contract dispute. Genever Holdings Corporation is a company in Road Town, Tortola, which is engaged in activities related to real estate. It sought Chapter 11 protection (Bankr. D. Conn. Case No. 22-50542) on Oct. 11, 2022, with $10 million to $50 million in assets and $100 million to $500 million in liabilities. On Nov. 21, 2022, the Connecticut bankruptcy court ordered the consolidation of the three cases for procedural purposes. The cases are jointly administered under Case No. 22-50073 and are assigned to Judge Julie A. Manning. Kevin J. Nash, Esq., at Goldberg Weprin Finkel Goldstein, LLP and Neubert Pepe & Monteith, P.C. serve as Genever Holdings, LLC's legal counsels. Neubert, Pepe & Monteith and Harney Westwood and Riegels, LP serve as Genever Holdings Corporation's bankruptcy counsel and British Virgin Islands counsel, respectively. Luc A. Despins, the Chapter 11 trustee appointed in Ho Wan Kwok's case, tapped Paul Hastings, LLP as bankruptcy counsel; Neubert, Pepe & Monteith as local and conflicts counsel; and Harney Westwood and Riegel as British Virgin Islands counsel. Pullman & Comley, LLC represents the official committee of unsecured creditors appointed in Ho Wan Kwok's bankruptcy case. GUIDED THERAPEUTICS: Raises $535K Through Stock & Warrants Offering ------------------------------------------------------------------- Guided Therapeutics, Inc. disclosed in a Form 8-K filed with the Securities and Exchange Commission that on Dec. 18, 2024, it entered into a Securities Purchase Agreement with certain institutional investors, including John Imhoff, a member of the Company's Board of Directors, for the purpose of raising $535,000 in gross proceeds for the Company. Pursuant to the terms of the Purchase Agreement, the Company agreed to sell, in a private placement offering, an aggregate of 4,115,386 shares of the Company's common stock and warrants to purchase up to 4,115,386 shares of Common Stock. The combined purchase price per Share and Warrant was $0.13. The Warrants are immediately exercisable upon issuance, expire four years following the issuance date and have an exercise price of $0.18 per share. The closing of the offering pursuant to the Purchase Agreement occurred on Dec. 18, 2024. The Company intends to use the net proceeds from the transactions for general corporate purposes and working capital, including manufacturing expenses for filling product orders placed recently by international distribution partners. About Guided Therapeutics Peachtree Corners, Ga.-based Guided Therapeutics, Inc. is a medical technology company focused on developing innovative medical devices that have the potential to improve healthcare. The Company's primary focus is the sales and marketing of its LuViva Advanced Cervical Scan non-invasive cervical cancer detection device. The underlying technology of LuViva primarily relates to the use of biophotonics for the non-invasive detection of cancers. LuViva is designed to identify cervical cancers and precancers painlessly, non-invasively and at the point of care by scanning the cervix with light, then analyzing the reflected and fluorescent light. Sterling Heights, Mich.-based UHY LLP the Company's auditor since 2007, issued a "going concern" qualification in its report dated March 28, 2024, citing that the Company has recurring losses from operations, limited cash flow, and an accumulated deficit. These conditions raise substantial doubt about the Company's ability to continue as a going concern. GULFSLOPE ENERGY: Delays Filing of Fiscal 2024 Annual Report ------------------------------------------------------------ GulfSlope Energy, Inc., filed a Form 12b-25 with the Securities and Exchange Commission regarding the delay in the filing of its Annual Report on Form 10-K for the year ended Sept. 30, 2024. The Company was unable to file the subject report in a timely manner because it was not able to complete timely its financial statements without unreasonable effort or expense. The Company undertakes the responsibility to file such report no later than the fifth calendar day following the prescribed due date. About Gulfslope Headquartered in Houston, Texas, Gulfslope Energy, Inc. -- http://www.gulfslope.com/-- is an independent crude oil and natural gas exploration and production company whose interests are concentrated in the United States Gulf of Mexico federal waters. The Company is a technically driven company, and it uses its licensed 2.2 million acres of advanced three-dimensional (3-D) seismic data to identify, evaluate, and acquire assets with attractive economic profiles. The Company has incurred accumulated losses as of June 30, 2023 of $69.8 million, has negative working capital of $14.7 million and for the nine months ended June 30, 2023 generated losses of $0.94 million. Further losses are anticipated in developing its business. As a result, the Company said there exists substantial doubt about its ability to continue as a going concern. As of June 30, 2023, the Company had approximately $2,200 of unrestricted cash on hand. GUNNISON VALLEY: Seeks to Extend Plan Exclusivity to March 26, 2025 ------------------------------------------------------------------- Gunnison Valley Properties, LLC, asked the U.S. Bankruptcy Court for the District of Colorado to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to March 26, 2025 and June 26, 2025, respectively. The Debtor owns Gunnison Rising, a 600-acre, fully-entitled, multi-phase, mixed-use development approved for 1,700 residential units, and 920,000 sf of commercial development, to include more than 350,000 sf of retail, 350,000 sf of industrial space, plus acreage for commercial space and an RV park, all adjacent to Western Colorado University (the "Project") in Gunnison, Colorado. The Debtor believes the best path forward for the Project and Debtor's creditors is to seek funding for the infrastructure necessary to obtain subdivision approval. Debtor believes that with access to capital, Debtor can obtain competitive bids for the work necessary to complete the essential on-site and off-site infrastructure and could actually complete the infrastructure in the 2025 construction season. Based on the relatively complex nature of the Project, Debtor anticipates it may take some time for these parties to digest the relevant documents and information for the Project and make proposals. The Debtor seeks a 3-month extension of the exclusivity period and a corresponding extension of the solicitation deadline. Debtor has not requested any prior extension of the exclusivity periods and Debtor has filed this motion within the 120-day exclusive period to file a plan, which expires December 26, 2024. Applying the pertinent factors here demonstrates that a 3-month extension of the exclusive periods is appropriate: * the size and complexity of the chapter 11 matters. Debtor's assets and debts are significant. Debtor asserts its assets have an estimated value of nearly $80MM. Debtor has approximately $28MM in undisputed secured debts and $10MM in unsecured debts. Moreover, the issues to be resolved for moving the Project forward or selling it are complex. * the necessity of sufficient time to allow the debtor to negotiate a plan of reorganization. Debtor intends to use the additional time before filing a plan to proceed and summarized as follows: (i) obtain the update to the 2023 market study valuation of the Project, (ii) continue to attempt to sell the 5-Acre Parcel and Government Campus lots, (iii) continue to attempt to sell Tomichi, (iv) select a lender to fund the infrastructure required to obtain subdivision approval, and (v) obtain bids for the scopes of work necessary to complete the described infrastructure. Given the difficulties for selling the Project in its current state, Debtor believes the additional time will allow it to move towards a plan by March 26, 2025. * whether the debtor has demonstrated reasonable prospects for filing a viable plan. Debtor's best prospect for filing a plan is through the efforts described, including moving forward with the Project and attempting to sell Tomichi and the parcels identified. Debtor has made material progress on those efforts and anticipates getting to a conclusion on those efforts prior to March 26, 2025. * whether the debtor is seeking an extension of exclusivity in order to pressure creditors to submit to the debtor's reorganization demand. Debtor is not seeking an extension to pressure creditors. The Debtor is seeking an extension to allow for sufficient time to move forward on the steps described. The Debtor claims that extending the exclusive periods to file a Plan and obtain Plan acceptance will permit the company to concentrate its time and effort on finding funding and selling certain assets. Debtor asserts the extensions should be granted in the interests of efficiency, economy and promoting Debtor's successful reorganization, all for the best interests of creditors and the estate. Gunnison Valley Properties, LLC is represented by: Andrew D. Johnson, Esq. Joli A. Lofstedt, Esq. Gabrielle G. Palmer, Esq. ONSAGER | FLETCHER | JOHNSON | PALMER LLC 600 17th Street, Suite 425 North Denver, CO 80202 Tel: (720) 457-7059 Email: ajohnson@OFJlaw.com About Gunnison Valley Properties Gunnison Valley Properties LLC in Louisville, Colo., sought relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 24-15052) on Aug. 28, 2024, listing $50 million to $100 million in assets and $10 million to $50 million in liabilities. Byron Chrisman, manager, signed the petition. Judge Joseph G. Rosania Jr. oversees the case. Onsager | Fletcher | Johnson | Palmer LLC serves as the Debtor's legal counsel. HARBORVIEW REHABILITATION: Case Summary & Top Unsecured Creditors ----------------------------------------------------------------- Two affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Harborview Rehabilitation and Care 25-10020 Center at Lansdale, LLC 7650 Rt 309 Coopersburg, PA 18036 Harborview Rehabilitation and Care 25-10021 Center at Doylestown, LLC 7650 Rt 309 Coopersburg, PA 18036 Business Description: Harborview Rehabilitation provides short term rehabilitation, long term care, and respite care. Chapter 11 Petition Date: January 3, 2025 Court: United States Bankruptcy Court Eastern District of Pennsylvania Judge: Hon. Patricia M Mayer Debtors' Counsel: Robert E. Chernicoff, Esq. CUNNINGHAM, CHERNICOFF & WARSHAWSKY PC 2320 N. Second St. Harrisburg, PA 17110 Tel: (717) 238-6570 Email: rec@cclawpc.com Each Debtor's Estimated Assets: $1 million to $10 million Each Debtor's Estimated Liabilities: $1 million to $10 million The petitions were signed by Leibel Gutman as manager of Sole Member, Harborview Holdings LLC. A copy of Harborview Rehabilitation and Care Center at Lansdale, LLC's 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/LCAS62I/Harborview_Rehabilitation_and__paebke-25-10020__0002.0.pdf?mcid=tGE4TAMA Full-text copies of the petitions are available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/KI65SMY/Harborview_Rehabilitation_and__paebke-25-10020__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/J6F3ESI/Harborview_Rehabilitation_and__paebke-25-10021__0001.0.pdf?mcid=tGE4TAMA HARBORVIEW REHABILITATION: Starts Subchapter V Bankruptcy Process ----------------------------------------------------------------- On January 3, 2025, Harborview Rehabilitation and Care Center at Doylestown LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 50 and 99 creditors. The petition states funds will be available to unsecured creditors. About Harborview Rehabilitation and Care Center at Doylestown LLC Harborview Rehabilitation and Care Center at Doylestown LLC Harborview Rehabilitation and Care Center at Doylestown LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-10021) on January 3, 2025 In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Alfredo R. Perez handles the case. Marcus Alan Helt of Mcdermott Will & Emery LLP represents the Debtor as counsel. HARE TAYLOR: Seeks Cash Collateral Access ----------------------------------------- Hare Taylor, LLC asked the U.S. Bankruptcy Court for the Northern District of Florida, Panama City Division, for authority to use cash collateral. The company requires the use of cash collateral to satisfy payroll obligations, obtain supplies, maintain insurance coverage, pay taxes and make other payments essential to the continued management and operation of its business. As of the petition date, Hare Taylor had approximately $13,014 of cash in deposit accounts. Its earnings going forward may be subject to creditors' alleged liens. Hare Taylor owes approximately $2.047 million to the U.S. Small Business Administration, which is secured by the company's property. Libertas Funding, LLC, DLP Funding, LLC and LG Funding, LLC may allege they are owed $163,399, $337,600 and $119,100, respectively. Without conceding that the SBA, a secured creditor, and the other potential creditors have a lien on the cash collateral, Hare Taylor proposed to grant these creditors a replacement lien with the same validity, extent, and priority as their respective pre-bankruptcy liens. A court hearing is set for Jan. 8. About Hare Taylor Hare Taylor, LLC 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 filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 24-50181) on Dec. 6, 2024. In the petition signed by Gerald W. Taylor, manager, the Debtor disclosed up to $10 million in both assets and liabilities. Brian G. Rich, Esq., at Berger Singerman, LLP serves as the Debtor's counsel. HEALTHCARE HOLDINGS: Taps B. Riley Advisory as Financial Advisor ---------------------------------------------------------------- Healthcare Holdings of Florida LLC and its affiliate seek approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ B. Riley Advisory Services as their financial advisor and sales agent. The firm will render these services: a. work closely with the Debtors' management to develop and implement plans to sell the Debtors' assets in a process overseen by the Bankruptcy Court, including the preparation of an informational teaser, a Confidential Information Memorandum, assisting with the preparation of due diligence materials, soliciting offers, and supporting the Debtors' counsel with documenting a sale transaction or a restructuring transaction; b. assist the Debtors in developing financial projections and liquidity projections, to the extent necessary for the foregoing; c. assist the Debtors in reviewing their strategic options; d. assist the Debtors in negotiating with various stakeholders; e. assist the Debtors with reviewing, evaluating and analyzing financial ramifications of proposed transactions for which the Debtors may seek court approval; f. assist the Debtors by providing financial advice and assistance in connection with a Sale Transaction or restructuring transaction; g. assist the Debtors by testifying before the Bankruptcy Court, or in depositions as may be required, on behalf of the Debtors; and h. assist the Debtors by performing such other duties or tasks that fall within the customary responsibilities of a debtor in possession's financial advisor as requested by the Debtors' management and/or board of directors. The firm will be paid at these rates: Joseph V. Pegnia $625 per hour Senior Managing Directors $525 to $900 per hour Managing Directors $495 to $750 per hour Associate Directors/Directors $395 to $495 per hour The Debtors have agreed to pay B. Riley a $30,000 retainer. B. Riley is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code, as required by section 327(a) of the Bankruptcy Code and does not hold or represent an interest materially adverse to the Debtors' estates. The firm can be reached through: Joseph V. Pegnia B. Riley Advisory Services 3445 Peachtree Road, Suite 1225 Atlanta, GA 30326 Direct: (470) 346-6833 Mobile: (404) 483-8422 Email: jpegnia@brileyfin.com About Healthcare Holdings of Florida LLC Healthcare Holdings of Florida LLC and affiliates constitute a business enterprise that collectively provide a full suite of home care services, including custodial care, skilled care, and senior placement services, particularly for senior patients in the State of Florida. The Debtors sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-21355-SMG) on October 30, 2024. In the petition signed by Gary R. Loffredo, chief executive officer and manager, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Scott M. Grossman oversees the case. Joseph A. Pack, Esq., at Pack Law, represents the Debtor as legal counsel. HERTZ CORP: Avoids $337-Mil. Bond Obligation -------------------------------------------- Clara Geoghegan of Law360 reports that a Delaware bankruptcy judge said Hertz Corp. doesn't need to post a $337.4 million bond while she uses an appeals court decision on underpaid interest to recalculate a group of unsecured noteholders' claims, writing the request would alter Hertz's more than 3-year-old Chapter 11 plan and give the noteholders better treatment than other creditors. About Hertz Corp. Hertz Corp. and its subsidiaries -- http://www.hertz.com/-- operate a worldwide vehicle rental business under the Hertz, Dollar, and Thrifty brands, with car rental locations in North America, Europe, Latin America, Africa, Asia, Australia, the Caribbean, the Middle East, and New Zealand. They also operate a vehicle leasing and fleet management solutions business. On May 22, 2020, The Hertz Corporation and certain of its U.S. and Canadian subsidiaries and affiliates filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware (Bankr. D. Del. Case No. 20-11218). Judge Mary F. Walrath oversees the cases. The Debtors have tapped White & Case LLP as their bankruptcy counsel, Richards, Layton & Finger, P.A., as local counsel, Moelis & Co. as investment banker, and FTI Consulting as financial advisor. The Debtors also retained the services of Boston Consulting Group to assist the Debtors in the development of their business plan. Prime Clerk LLC is the claims agent. The U.S. Trustee for Regions 3 and 9 appointed a Committee to represent unsecured creditors in Debtors' Chapter 11 cases. The Committee has tapped Kramer Levin Naftalis & Frankel LLP as its bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as Delaware counsel, UBS Securities LLC as investment banker, and Berkeley Research Group, LLC, as financial advisor. Ernst & Young LLP provides audit and tax services to the Committee. * * * Hertz Global and its subsidiaries emerged from Chapter 11 bankruptcy at the end of June 2021. Hertz won approval of a Plan of Reorganization that unimpaired all classes of creditors (who are legally deemed to have accepted it) and was approved by more than 97% of voting shareholders. The Plan provided for the existing shareholders to receive more than $1 billion of value. Recovery by shareholders of close to $8 a share was made possible after a fierce competition among bidders for control in the company. Initial offers from potential bidders for Hertz in its bankruptcy offered nothing for equity. Hertz in May 2021 selected investment firms Knighthead Capital Management LLC and Certares Management LLC, joined by other investors including Apollo Global Management Inc. and a group of existing shareholders, as the winning bidders for control of the bankrupt company. A rival group that included Centerbridge Partners LP, Warburg Pincus LLC and Dundon Capital Partners LLC was outbid at auction. Hertz's Plan eliminated over $5 billion of debt, including all of Hertz Europe's corporate debt, and will provide more than $2.2 billion of global liquidity to the reorganized Company. Hertz also emerged with (i) a new $2.8 billion exit credit facility consisting of at least $1.3 billion of term loans and a revolving loan facility, and (ii) an $7 billion of asset-backed vehicle financing facility, each on favorable terms. HIGH HEELS: Files Chapter 11 Bankruptcy in Illinois --------------------------------------------------- On January 4, 2025, High Heels Dancing Co. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Illinois. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 50 and 99 creditors. The petition states funds will be available to unsecured creditors. About High Heels Dancing Co. High Heels Dancing Co. is operating as High Heels Gentlemen's Club in Somonauk, Illinois. High Heels Dancing Co. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-00096) on January 4, 2025 In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities between $500,000 and $1 million. Joel A Schechter, Esq. of Law Offices Of Joel Schechter represents the Debtor as counsel. HILLLCREST CENTER: Seeks to Use Cash Collateral ----------------------------------------------- Hillcrest Center, LLC asked the U.S. Bankruptcy Court for the District of Minnesota for authority to use cash collateral. The company needs to use cash collateral to, among other things, pay its bills and make adequate protection payments to its secured lender. MinnWest Bank claims an interest in the cash collateral (through an assignment of rents recorded against the property). Hillcrest believes that MinnWest Bank is fully secured as to the mortgage interest and the interest in the rents of the tenants of the company. As adequate protection for holders of cash collateral, Hillcrest proposed to (i) grant replacement liens on their asserted collateral having the same dignity, priority and extent as existed on the petition date; (ii) report and account for the use of any cash proceeds by the company on a monthly basis; (iii) keep the cash and other personal property collateral insured; and provide a payment to Minn West Bank in an amount equal to interest per month up to the amount of its interest in cash collateral. A hearing is set for Jan. 14. About Hillcrest Center LLC Hillcrest Center, LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Hillcrest Center sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Minn. Case No. 24-33279) on December 12, 2024, with total assets of $8,181,056 and total liabilities of $6,256,577. Rosemary Kortgard, managing member, signed the petition. Judge William J. Fisher handles the case. The Debtor is represented by Kenneth Edstrom, Esq., at Sapientia Law Group. HULKZ CONSTRUCTION: Unsecureds to be Paid in Full in Plan --------------------------------------------------------- Hulkz Construction LLC filed with the U.S. Bankruptcy Court for the Eastern District of New York a Disclosure Statement for Chapter 11 Plan of Reorganization dated December 20, 2024. The Debtor is a New York Limited Liability Corporation, which was incorporated on July 23, 2020 by Bisnauth Doodnauth, the owner of 100% of the Debtor, with an address of 8 Quail Run, Shirley, New York 11967. The Debtor is in the business of owning and operating the real properties being (1) a two family property located at 1834 Hamburg Street, Schenectady, NY 12304 (the "Hamburg Property") and (2) a one family property located at 142 N. Brandywine Ave., Schenectady, NY 12307 (the "Brandywine Property") (collectively the "Business Properties"). Class 3 designated under and by the Plan consists of all Persons or Entities who hold Allowed General Unsecured Claims against the Debtor. The Debtor believes that the only Claims that are includable in this class are the unsecured portion of the claim of the IRS in the sum of $945.27 and the unsecured portion of the claim of NYS in the sum of $200.00, for a total of $1,145.27. The Debtor shall pay the full amount of the Class 3 Claim, over a period of seven years, with no interest, as follows: payments shall be made in 60 equal monthly installments, commencing on the effective date of the Plan, and continuing until the obligation is paid in full. Thus, the monthly payment to holders of Claims in this Class under the Debtor's Plan shall be in the sum of $13.63. Payments to Holders of Allowed General Unsecured Claims in Class 3 may be made on or before the date such payments are due, at the sole discretion of the Debtor. Should the Debtor elect in its discretion to prepay all or any part of a distribution to holders of Allowed General Unsecured Claims in Class, such prepayment shall be discounted to present value by the prime rate. Class 3 claims are impaired. Class 4 designated under and by the Plan consists of Allowed Stock Interests. There shall be no dividends on any Class of corporate stock declared or distributed pending the full and final payment of all sums. All monies which shall be used to make payments to all holders of Administrative claims, Priority Tax claims, Class 2 claims, Class 3 claims, and Class 4 claims shall be derived from the Debtor's operations. A full-text copy of the Disclosure Statement dated December 20, 2024 is available at https://urlcurt.com/u?l=mBEBKH from PacerMonitor.com at no charge. Counsel for the Debtor: Raymond W. Verdi Jr., Esq. Law Offices of Raymond W. Verdi Jr., PC 116 East Main Street, Suite C Patchogue, NY 11772 Telephone: (631) 289-2670 Facsimile: (631) 758-2304 About Hulkz Construction LLC Hulkz Construction LLC is in the business of owning and operating the real properties being (1) a two family property located at 1834 Hamburg Street, Schenectady, NY 12304 (the "Hamburg Property") and (2) a one family property located at 142 N. Brandywine Ave., Schenectady, NY 12307 (the "Brandywine Property") (collectively the "Business Properties"). The Debtor sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-70785) on February 5, 2024, listing up to $50,000 in both assets and liabilities. Judge Nancy Hershey Lord presides over the case. Raymond W. Verdi Jr., Esq. at the Law Offices of Raymond W. Verdi Jr., is the Debtor's counsel. HYPHA LABS: Delays Filing of Fiscal 2024 Annual Report ------------------------------------------------------ Hypha Labs, Inc. disclosed in a Form 12b-25 filed with the Securities and Exchange Commission that its Form 10-K for the fiscal year ended Sept. 30, 2024 could not be filed within the prescribed time period without unreasonable effort or expense because the audit of the Company's financial statements for the fiscal year ended Sept. 30, 2024 had not been completed prior to the close of business on Dec. 29, 2024. The Company anticipates the Annual Report will be filed on or before the fifteenth calendar day following the prescribed due date. About Hypa Labs Formerly Digipath, Inc., Hypha Labs, Inc.'s mission was to provide pharmaceutical-grade analysis and testing to the cannabis industry, under ISO-17025:2017 guidelines, to ensure consumers and patients knew exactly what was in the cannabis they ingest and to help maximize the quality of its clients' products through research, development, and standardization. Hypha Labs had been operating a cannabis-testing lab in Nevada since 2015. On Feb. 20, 2024, the Company completed the sale of the net assets of its subsidiary Digipath Labs. As of that date the Company was no longer in business as a service-oriented independent testing laboratory, data analytics and media firm focused on the developing cannabis and hemp markets, which supported the cannabis industry's best practices for reliable testing, cannabis education and training. Spokane, Washington-based Fruci & Associates II, PLLC, the Company's auditor since 2023, issued a "going concern" qualification in its report dated Jan. 16, 2024, citing that the Company has an accumulated deficit, recurring losses from operations and has cash on hand that may not be sufficient to sustain its operations. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. IGNITE OPTICS: Gets Interim OK to Use Cash Collateral Until Jan. 31 ------------------------------------------------------------------- Ignite Optics Communications, LLC received interim approval from the U.S. Bankruptcy Court for the District of Colorado to use cash collateral until Jan. 31. The company must use cash collateral to continue its business operations post-petition and maintain its inventory. Secured creditors including Benchmark Factors, LLC, Everest Funding and Highland Capital were provided with adequate protection in the form of a post-petition lien on inventory, accounts, proceeds, and income derived from the business. In addition, secured creditors may be entitled to an administrative expense claim to the extent of any diminution in value of their interest in the cash collateral. Prior to its Chapter 11 filing, Ignite Optics Communications entered into a factoring agreement with Benchmark pursuant to which the company agreed to sell certain of its receivables to Benchmark in exchange for payment of a majority of the face value of the sold receivable. The company's agreement with Benchmark is a true factoring agreement, giving Benchmark a right to collection of the factored receivable and a lien on that receivable upon payment of the agreed amount to the company. As of the petition date, Ignite Optics Communications had factored receivables in the amount of approximately $33,504 with Benchmark and had previously received payment on account of such factoring relationship. Benchmark further acts as a factoring company for several of the company's subcontractors who provide services on ongoing projects. In May and August 2024, Ignite Optics Communications entered into Merchant Cash Advance Agreements pursuant to which Everest Funding and Highland Capital loaned funds to the company and demanded daily repayments. The MCAs further asserted a lien on the company's assets, including accounts and accounts receivables. The Debtor will be replacing its accounts, cash, and cash equivalents in the course of its daily operations and therefore the collateral base will remain stable and will improve over time. The Debtor's cash position is projected to be positive after meeting expenses during the term of the Chapter 11 case. A final hearing is set for Jan. 22. About Ignite Optics Communications Ignite Optics Communications, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 24-17506) on December 19, 2024, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Kimberley H. Tyson presides over the case. Keri L. Riley, Esq., at Kutner Brinen Dickey Riley, P.C. represents the Debtor as legal counsel. INSTITUTE OF ISLAMIC: Seeks Chapter 11 Bankruptcy Protection ------------------------------------------------------------ On January 2, 2025, Institute of Islamic Studies, Incorporated filed Chapter 11 protection in the U.S. Bankruptcy Court for 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. About Institute of Islamic Studies, Incorporated Institute of Islamic Studies, Incorporated is a California-based organization that offers educational programs and resources related to Islamic studies. Institute of Islamic Studies, Incorporated sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10003) on January 2, 2025. In its petition, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Julia W. Brand presides over the case. Robert P. Goe, Esq. of GOE FORSYTHE & HODGES LLP represents the Debtor as counsel. INTER PIPELINE: DBRS Finalizes BB Rating on $450MM 2024-A Notes --------------------------------------------------------------- DBRS Limited finalized its provisional credit rating of BB with a Negative trend to Inter Pipeline Ltd.'s (IPL or the Company) 6.75% Fixed-to-Fixed Rate Subordinated Notes, Series 2024-A due December 12, 2054 (the Hybrid Notes) of $450 million. Morningstar DBRS also assigns an equity weight of 50% to the Hybrid Notes based on the current Morningstar DBRS Global Corporate Criteria released on April 15, 2024. Notes: All figures are in Canadian dollars unless otherwise noted. IRECERTIFY LLC: Asks Court to OK Prior Use of Cash Collateral ------------------------------------------------------------- iRecertify, LLC asked the U.S. Bankruptcy Court for the District of Utah to approve its prior unauthorized use of cash collateral. Between Oct. 7 and Nov. 18, 2024, the company utilized cash collateral without prior court approval or consent of secured creditors. The company expended approximately $332,869.65 during the period. The creditors with a potential interest in the cash collateral utilized include First Corporate Solutions as representative, Utah State Tax Commission; Corporation Service Company as representative, Ouiby Inc., and CFG Merchant Solutions. The total amount subject to the security interest of the affected creditors appears to be $55,832.56 ($15,479.07 in cash collateral and $40,353.49 in an interest in the accounts receivable), according to court filings. iRecertify proposed to grant the affected creditors replacement liens on post-petition property to the extent that their liens on the cash collateral are diminished. A court hearing is scheduled for Jan. 17. About IRecertify iRecertify, LLC, doing business as Warehouse B, is a merchant wholesaler of professional and commercial equipment and supplies. IRecertify sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Utah Case No. 24-25156) on Oct. 7, 2024, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Brett Kitson, managing member, signed the petition. Judge Peggy Hunt oversees the case. The Debtor is represented by Russell S. Walker, Esq., at Pearson Butler, PLLC. IRWIN NATURALS: Unsecureds to Get Share of Disposable Income ------------------------------------------------------------ Irwin Naturals and affiliates filed with the U.S. Bankruptcy Court for the Central District of California a First Amended Disclosure Statement describing First Amended Plan of Reorganization dated December 23, 2024. Irwin Nevada is a popular dietary supplement company that was founded in 1994, the same year that Congress first enacted legislation to define and regulate dietary supplements. Irwin Nevada formulates, markets, and distributes vitamins and supplements. Irwin Nevada has a number of subsidiaries and affiliates including related debtors Irwin Canada, DAI, and Holdings. Irwin Nevada is the operating entity through with the Debtors' nutraceutical business is conducted. Irwin Canada is the ultimate "parent company" of the Debtors. Klee Irwin, Irwin Nevada's CEO, and his family trust directly or indirectly own the majority of the Debtors' and have control over the Debtors. The Plan described in this Disclosure Statement is a reorganizing plan, which the Debtors expect will be funded by the Debtors' ongoing business operation and/or exit financing and/or a partial or full equity investment. The Plan described in this Disclosure Statement provides for Irwin Nevada's, DAI's and 5310's emergence from their chapter 11 bankruptcy cases as the "Reorganized Debtors", which the Debtors anticipate will occur in March 2025. After confirmation of the Plan, Irwin Nevada will continue operating its nutraceutical business that it has successfully operated since its inception in 1994, 5310 will remain a subsidiary of Irwin Nevada that holds the majority of the Debtors' intellectual property, and DAI will remain as the holding company for Irwin Nevada. Through their Plan, the Debtors will be dissolving Irwin Canada. The Plan provides for a reorganization which dissolves one entity, Irwin Canada, with Irwin Nevada, 5310 and DAI as the remaining entities. Through the Plan, the Debtors will pay all allowed claims in full. Through the Plan, the existing public shareholders of Irwin Canada will obtain a direct ownership interest in DAI. Class 3 consists of General Unsecured Claims [Excluding Insider Claims]. Estimated at approximately $5 to $6 million. (This number is subject to change as follows: (a) the resolution of objections to Disputed Claims; and (b) the amount of rejection damages claims asserted by the former landlord). Allowed General Unsecured Claims will be paid 40% of the net disposable income ("NDI") as set forth in the Plan Projections (Cash Available for Discretionary Debt Repayment). If Allowed General Unsecured Claims are not paid in full prior to February 1, 2027, the Debtors shall pay the remaining balance of Allowed General Unsecured Claims in full on or before February 1, 2027. If the Debtors obtain exit financing and/or an equity investment, then Allowed General Unsecured Claims shall be paid an upfront payment on a pro rata basis in an amount to be determined (that will be set forth in the Plan Supplement) within one week of the Effective Date. Class 4 consists of General Unsecured Claim of Insider Klee Irwin. Mr. Irwin has agreed to subordinate his claim to all Allowed Claims in exchange for Irwin Nevada agreeing that Mr. Irwin can commence payments on his notes payable at the same time. The Debtors believe this treatment is in the best interests of their estates as Mr. Irwin's notes are not currently collectible. The majority of Mr. Irwin's assets are subject to liens held by EWB pursuant to a separate loan agreement entered into between EWB and Mr. Irwin. The notes in question are collateralized by Mr. Irwin's equity in the Debtors so at the time all Allowed Claims are satisfied, the Debtors can realistically re-evaluate the collectability of such notes. Class 5 consists of Equity Interests of Klee Irwin (90% Non-Voting Interest), Klee & Margareth Irwin Children's Trust (10% Non-Voting Interest) and DAI US HoldCo, Inc. (100% Voting Interest). The shareholders of Irwin Nevada shall retain their current equity interests in Irwin Nevada. However, any conversion rights held by the NonVoting Interests to Irwin Canada shares shall be convertible to the new DAI shares. The Debtor are pursing (a) exit financing that allows them to pay the Class 1 Allowed Secured Claim in full, and (b) exit financing that will allow them to partially pay the Class 1 Allowed Claim. In Option (b), the Debtors expect that the Class 1 Claimant may be required to consent to such financing as such potential lender would likely require a first priority interest in the Debtors' Assets. The Debtors are in the process of interviewing investment bankers to see if they are able to find a partial or full equity investment to assist with funding the Plan in an effort to pay Allowed Claims more expeditiously. To date, the Debtors have received two exploratory offers, both of which were unsolicited by the Debtors, to purchase their business in amounts that are significantly below market value. If the Debtors are unable to obtain Exit Financing and/or an Equity Investment, or determine that it is in their best interests not to do so, then the Plan will be funded by the Debtors' ongoing business operations as set forth in the Plan Projections. A full-text copy of the First Amended Disclosure Statement dated December 23, 2024 is available at https://urlcurt.com/u?l=Fwstz3 from Omni Agent Solutions, Inc., claims agent. Counsel to the Debtors: David M. Poitras, Esq. Susan K. Seflin, Esq. Jessica S. Wellington, Esq. BG LAW LLP 21650 Oxnard Street, Suite 500 Woodland Hills, CA 91367 Telephone: (818) 827-9000 Facsimile: (818) 827-9099 Email: dpoitras@bg.law sseflin@bg.law jwellington@bg.law About Irwin Naturals Irwin Naturals is a provider of business support services. Irwin Naturals and affiliates, 5310 Holdings, LLC, DAI US HoldCo, Inc. and Irwin Naturals, Inc., filed Chapter 11 petitions (Bankr. C.D. Calif. Lead Case No. 24-11323) on Aug. 9, 2024. At the time of the filing, Irwin Naturals reported $10 million to $50 million in both assets and liabilities. Judge Victoria S. Kaufman oversees the cases. The Debtors tapped BG Law, LLP as bankruptcy counsel; Beach, Freeman, Lim & Clelland, LLP as accountant; Province, LLC as financial advisor; and Marula Capital Group, LLC as valuation consultant. Omni Agent Solutions, Inc., is the Debtors' administrative agent. The U.S. Trustee for Region 16 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee is represented by Golden Goodrich, LLP. IVF ORLANDO: Gets Interim OK to Use Cash Collateral Until Feb. 19 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, issued a third interim order authorizing IVF Orlando, Inc. to use cash collateral until Feb. 19. IVF Orlando was authorized to use cash collateral to pay necessary expenses set forth in the budget, including payments to the Subchapter V trustee and payroll obligations incurred post-petition, plus an amount not to exceed 10% for each line item. Secured creditors were granted a replacement lien on post-petition cash collateral. The next hearing is scheduled for Feb. 19. About IVF Orlando IVF Orlando Inc. -- https://theivfcenter.com/ -- is one of the longest established IVF programs in the Winter Park, Orlando, Florida area. IVF Orlando sought relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05475) on October 8, 2024, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. L. Todd Budgen, Esq., a practicing attorney in Longwood, Fla., serves as Subchapter V trustee. Judge Tiffany P. Geyer handles the case. The Debtor is represented by Daniel A. Velasquez, Esq., at Latham Luna Eden & Beaudine, LLP. J.A.R. CONCRETE: Court Rules on CRRMMA Wrongful Default Claim ------------------------------------------------------------- Judge Christopher G. Bradley of the United States Bankruptcy Court for the Western District of Texas issued a ruling on on the issue of wrongful default in the case captioned as CAMINO REAL REGIONAL MOBILITY AUTHORITY, Plaintiff, v. RONALD E. INGALLS, solely in his capacity as Chapter 7 Trustee for the estate of J.A.R. CONCRETE, INC., d/b/a J.A.R. Construction, Inc., Defendant, Adv. No. 24-03001-cgb (Bankr. W.D. Tex.). Camino Real Regional Mobility Authority seeks declaratory relief from Ronald Ingalls, trustee of the Chapter 7 bankruptcy estate of J.A.R. Concrete, Inc.; the Trustee has counterclaimed for monetary and declaratory relief. The Court has determined to hold a multi-part trial in this adversary proceeding. The first stage of trial was held in El Paso on November 13, 2024, and closing arguments were heard by Zoom on December 5, 2024. Camino Real was created in 2007 as a political subdivision of the State of Texas. In 2019, Camino Real sought bids for the Pellicano Drive Widening Project, an improvement project to widen Pellicano Drive east of the TX-375 Loop in El Paso. It awarded the Project to JAR in 2020, the parties entered into their contract in March 2020, and construction was to commence in April 2020. In particular, JAR and Camino Real entered into a contract, which had several parts. Due to a number of factors, many of which are hotly contested, the Project remained unfinished through the end of 202218 (and apparently remains so today). Camino Real sent a notice of intent to default to JAR on December 7, 2022, which listed corrective items for JAR to perform within a 10-day period. Deeming JAR's response to this notice to be insufficient, Camino Real defaulted JAR on December 22, 2022. In response, JAR submitted a claim for wrongful default to Camino Real on January 9, 2023, and Camino Real determined that its declaration of default was proper on January 30, 2023. The Trustee, on behalf on JAR, maintains that the default was wrongful and seeks damages relating to it (as well as asserting a number of other claims against Camino Real). The parties also disagree on the propriety of the default process itself. Camino Real maintains that it "substantially complied" with the contractual default process, and furthermore, that its project manager, an engineering firm called Atkins North America Inc., led by a licensed engineer named Edgar Fino, was empowered by the Contract, as "Engineer" thereunder, not just to supply the initial notice of intent to default but to make the later determination of whether the contractual default process (in which it was involved) was correct. According to Camino Real, Mr. Fino made his final determination on this matter at a meeting/"hearing" on August 8, 2023, which JAR was invited to but did not attend, and Mr. Fino's decision was memorialized in a letter dated August 16, 2023. The Trustee argues, by contrast, that Camino Real did not comply with the contractually ordained default process, that Mr. Fino of Atkins is not the Engineer under the Contract, and that even if it is, it is not empowered to make the determination of whether the default process was proper. It also contends that the Engineer has no right to determine its affirmative claims for additional time and/or damages under the Contract. It states that it filed such claims with Camino Real on December 6, 2023, as contractually required, but that they were never considered and therefore must be considered by this Court. The Court holds as follows concerning the questions presented in this trial's First Stage: 1) the identity of the Engineer that is to act as referee in the contract between Camino Real and JAR Mr. Edgar Fino of Atkins North America, Inc. served as the Engineer under the Contract from its inception. 2) the scope of the Engineer's authority as referee to decide the matters addressed in the August 16, 2023, decision by Edgar Fino of Atkins North America, Inc. and affirmative claims by JAR for additional time and/or damages The Contract entrusts the Engineer with authority to determine numerous matters, including whether to issue a notice of intent to default and other matters related to default. Affirmative claims for additional time and/or damages generally fall within this authority as well. Insofar as the Engineer has made a determination on matters within his authority, his decision can only be overturned if "in making it he is guilty of fraud, misconduct, or such gross mistake as would imply bad faith or failure to exercise an honest judgment" (the "Gross Error Standard"). The Engineer does not, however, also have the right (as Camino Real asserts) to sit in judgment under the contractual Dispute or Claims Procedure to determine whether his own decision was gross error. That must be done according to state law, which in this case means by this Court applying the appropriate substantive standard, which, as noted, for all or nearly all of the relevant determinations, will likely be the Gross Error Standard. 3) the propriety of the process leading to the August 16, 2023, determination by Edgar Fino of Atkins North America, Inc. Although the notice of intent to default did not come from the Engineer as it was supposed to, the Engineer was in fact sufficiently involved throughout the default process that the Court believes that the contractual default process was substantially followed. Accordingly, the Court will review the Trustee's claim for wrongful default under the Gross Error Standard. Because the Engineer is not empowered by the Dispute or Claims Procedure to determine disputes or claims that have been "elevated" (as the Contract puts it), the "appeal" from the default determination should not have been to the Engineer and thus his August 16, 2023, decision is not entitled to any additional deference. A copy of the Court's decision is available at https://urlcurt.com/u?l=CHTgRn About J.A.R. Concrete J.A.R. Concrete, Inc., a company in El Paso, Texas, filed its voluntary petition for Chapter 11 protection (Bankr. W.D. Texas Case No. 23-30242) on March 14, 2023, with as much as $1 million to $10 million in both assets and liabilities. Joe A. Rosales, Jr., president, director and shareholder of J.A.R. Concrete, signed the petition. Judge H Christopher Mott oversaw the case. E.P. Bud Kirk, Esq., a practicing attorney in El Paso, Texas, and Griffith Davison, P.C., served as the Debtor's bankruptcy counsel and special counsel, respectively. The case was converted to Chapter 7 on September 12, 2023. Ronald Ingalls is the Chapter 7 trustee. JLM COUTURE: Court Rules on JLJ's Administrative Expense Claims --------------------------------------------------------------- Judge J. Kate Stickles of the United States Bankruptcy Court for the District of Delaware will grant in part, and deny, in part, JLJ Bricken LLC's motion for an order directing immediate payment of post-petition attorneys' fees and additional rent pursuant to 11 USC Sec. 365(d)(3) from the debtor JLM Couture, Inc. The Landlord leased to the Debtor the fifth floor at 225 West 37th Street, New York, NY 10018. The Lease was entered into February 26, 2003, and the original term was set to expire on February 28, 2013, but was subsequently extended through January 14, 2022. Immediately prior to expiration, the monthly base rent under the Lease was $25,335.50. After January 2022, the Debtor remained in the Premises until February 29, 2024. The Landlord filed the Original Motion6 seeking an administrative expense claim at a Monthly Treble Damages rate pursuant to 11 U.S.C. Sec. 365(d)(3), stub rent pursuant to 11 U.S.C. Sec. 503(b), and relief from the automatic stay to pursue the prepetition Landlord-Tenant Action. Following an evidentiary hearing, the Cou1t entered the Administrative Expense Opinion denying the Landlord's requested Monthly Treble Damages and awarding the Landlord an administrative expense claim for Stub Rent, Post-Petition Rent, and February 2024 Rent. The Court also awarded Attorney's Fees, subject to the patties' agreement and/or subsequent order. The Landlord moved for reconsideration of the Administrative Expense Opinion. As set forth in the Reconsideration Memorandum Order, the Court granted reconsideration, in part, allowing an administrative claim for "the actual electric, sprinkler, and water charges for the period from the Petition Date through February 29, 2024." The parties were directed to confer and submit a ledger reflecting the actual Additional Rent and, thereafter, the Court would issue an Order. Having failed to agree on the Attorney's Fees to be awarded or the actual amount of Additional Rent, the Landlord filed the instant Motion. RLG's Attorney's Fees The Debtor objects to RLG's fees arguing they are unreasonable, the Original Motion was straightforward, and the work performed on the "Landlord's behalf was excessive and unnecessary." The Court denies the Landlord's request for payment of $4,567.50 in RLG's fees (exclusive of the $3,217.00 voluntary reduction). The Debtor asserts that the Landlord's request for an administrative expense claim was unreasonable because the Landlord successfully sought triple rent in the Original Motion and subsequent Reconsideration Motion. The Court finds the record establishes that the compensation sought is reasonable and warranted considering the issues presented and the circumstances of the case, including Debtor's failure to pay post-petition rent and vacate the Premises. The Court denies RLG's fees for services related purely to bankruptcy law issues and grants the balance of RLG's fees ($59,683.50) as reasonable. Silverman Fees The Landlord also seeks $30,000 for legal services performed by Silverman at JLJ Property Management LLC, presumed to be in-house counsel for the Landlord. The Court finds the Landlord has not met its burden with respect to Silverman. According to the Court, the Silverman invoice invoice is entirely insufficient to support a fee. The invoice does not contain the name or credentials of the professional(s) who provided legal services, the applicable billing rate (hourly, flat fee, contingent fee, or otherwise), or the number of hours billed by any professional. Consequently, the Landlord's request for payment of the Silverman invoice is denied. Sprinkler Charges The Landlord requests $993.55 for sprinkler charges for October 2, 2023 through February 29, 2024, at the contract rate of $200 per month. The Debtor does not oppose the sprinkler charge. Such amount is actual, reasonable, and consistent with the Court's Reconsideration Memorandum Order. Water Charges The Landlord requests $993.55 for water charges for October 2, 2023 through February 29, 2024, at the contract rate of $200 per month.38 The Debtor does not oppose the water charge. Such amount is actual, reasonable, and consistent with the Court's Reconsideration Memorandum Order. Electric Charges If the Lease was "unexpired" as of the Petition Date, and the electricity charges examined under section 365(d)(3) (Montgomery Ward and its progeny), the electricity charges equate to $11,326.98. On the other hand, if the Lease is "expired" and the electricity charges examined under section 503(b ), the Landlord would be entitled to the actual and necessary cost of electricity to preserve the estate for the period from the Petition Date through the date the Debtor vacated the Premises (October 2, 2023 through February 29, 2024); the Landlord would not be entitled to the 30% surcharge in the Lease. Thus, under section 503(b), the electricity charges equate to $6,865.29. Accordingly, the Landlord is entitled to administrative expense claims in the following amounts: (a) RLG fees in the amount of $59,683.50; (b) Sprinkler charges in the amount of $993.55; (c) Water charges in the amount of $993.55; and (d) Electricity charges in the amount of $6,865.29. The remainder of the Motion will be denied. A copy of the Court's decision is available at https://urlcurt.com/u?l=gKVLmv About JLM Couture Inc. JLM Couture Inc., operates a bridal design and manufacturing business in New York. It operates 12 collections, nine of which are bridal lines, one bridesmaid line and one flower girl line. JLM Couture filed its voluntary petition for relief under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Del. Case No. 23-11659) on Oct. 2, 2023, with $2,850,196 in total assets and $2,115,305 in total liabilities. Joseph L. Murphy, president, signed the petition. Judge J. Kate Stickles oversees the case. The Debtor tapped Cross & Simon, LLC, as its legal counsel. JMKA LLC: Case Summary & 13 Unsecured Creditors ----------------------------------------------- Debtor: JMKA, LLC d/b/a Elmhurst Premier Childcare 180 N. York St. Elmhurst, IL 60126 Business Description: Elmhurst Premier Childcare is a specialized licensed childcare center created in 2019. It offers innovative curriculums, individualized attention, and organic nourishment. The center caters to the developmental needs of infants, toddlers and preschool aged children. Chapter 11 Petition Date: January 2, 2025 Court: United States Bankruptcy Court Northern District of Illinois Case No.: 25-00036 Judge: Hon. David D Cleary Debtor's Counsel: Ben Schneider, Esq. THE LAW OFFICES OF SCHNEIDER AND STONE 8424 Skokie Blvd Suite 200 Skokie, IL 60077 Tel: (847) 933-0300 E-mail: ben@windycitylawgroup.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Kasindra Mladenoff as managing member. 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/IVVJOQQ/JMKA_LLC__ilnbke-25-00036__0001.0.pdf?mcid=tGE4TAMA JMKA LLC: Files Chapter 11 Bankruptcy Protection in Illinois ------------------------------------------------------------ On January 3, 2025, JMKA LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Illinois. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About JMKA LLC JMKA LLC operating as Elmhurst Premier Childcare, is a boutique childcare center located in downtown Elmhurst, Illinois. JMKA LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-00036) on January 3, 2025 In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. The Law Offices of Schneider and Stone represents the Debtor as counsel. JUNK SHUTTLE: Gets Interim OK to Use Cash Collateral ---------------------------------------------------- Junk Shuttle, LLC received interim approval from the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division, to use cash collateral. The interim order authorized the company to use cash collateral to pay business expenses in accordance with its projected budget, with a 10% variance. As protection, secured creditors including Ascendus, Inc., Cadence Bank and On Deck Capital, Inc. were granted replacement liens on Junk Shuttle's post-petition assets to the same extent and with the same validity and priority as their pre-bankruptcy liens. In addition, Junk Shuttle was authorized to make monthly payments of $1,241.69 to Ascendus, $1,798.25 to Cadence, and an unspecified amount to On Deck. The final hearing is set for Feb. 12. Objections are due by Feb. 5. About Junk Shuttle LLC Junk Shuttle, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 24-34738) on December 16, 2024. In the petition signed by Timothy B. Wiley, sole member, the Debtor disclosed up to $100,000 in assets and up to $1 million in liabilities. Lynn L. Tavenner, Esq., at Tavenner & Beran, PLC, represents the Debtor as legal counsel. KB DEVELOPMENT: Hires Desai Law Firm LLC as Counsel --------------------------------------------------- KB Development Group, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Illinois to employ Desai Law Firm, LLC as counsel. The firm's services include: a. advising the Debtor with respect to its rights, power and duties in this Chapter 11 case; b. assisting and advising the Debtor in its consultations with the Subchapter V Trustee; c. assisting the Debtor in analyzing the claims of creditors and negotiating with such creditors; d. assisting the Debtor with investigation of the assets, liabilities and financial condition of the Debtor and reorganizing the Debtor's business in order to maximize the value of the Debtor's assets for the benefit of all creditors; e. advising the Debtor in connection with the sale of assets or businesses; f. assisting the Debtor in his analysis of and negotiation with any third-party concerning matters related to, among other things, the terms of a plan of reorganization; g. assisting and advising the Debtor with respect to any communications with the general creditor body regarding significant matters in this case; h. commencing and prosecuting necessary and appropriate actions and/or proceedings on behalf of the Debtor; i. reviewing, analyzing or preparing, on behalf of the Debtor, all necessary applications, motions, answers, orders, reports, schedules, pleadings and other documents; j. representing the Debtor at all hearings and other proceedings; k. conferring with other professional advisors retained by the Debtor in providing advice to the Debtor; l. performing all other necessary legal services in this case as may be requested by the Debtor in this Chapter 11 case; and m. assisting and advising the Debtor regarding pending litigation matters in which the Debtor may be involved, including continued prosecution or defense of actions and/or negotiations on the Debtor's behalf. The firm will be paid at these rates: Partners $385 per hour Associates $250 per hour Paralegals/law clerks $125 per hour The firm received a retainer in the amount of $3,000 from KB Contracting LLC. An additional $9,000.00 from KB Contracting LLC is due by December 31, 2024. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Spencer P. Desai, Esq., a partner at Desai Law Firm, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Spencer P. Desai, Esq. The Desai Law Firm, LLC 13321 North Outer Forty Road, Suite 300 St. Louis, MO 63017 Telephone: (314) 666-9781 Facsimile: (314) 448-4320 Email: spd@desailawfirmllc.com About KB Development Group, LLC KB Development Group, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ill. Case No. 24-30769-lkg) on October 23, 2024. In the petition signed by Mike Thomas, manager, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Steven M. Wallace, Esq., at Goldenberg Heller & Antognoli, P.C., represents the Debtor as legal counsel. KESTESPRESSO LLC: Hires Abelson Law Offices as Bankruptcy Counsel ----------------------------------------------------------------- Kestespresso LLC seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to hire Abelson Law Offices PLLC as bankruptcy counsel. The firm will render all legal services needed to conclude this Chapter 11 case, including notice to creditors request for automatic stay, negotiation w/ creditors, DIP funding applications. If necessary, advice the debtor on Plan & Disclosure Statement and confirmation, and related work. All services will be billed at $400 per hour with additional fees. The firm received an initial retainer of $7,500. Steven J. Abelson, Esq. of Abelson Law Offices assured the court that his firm is a disinterested person under 11 U.S.C. Sec. 101(14). The firm can be reached through: Steven J. Abelson, Esq. ABELSON LAW OFFICES 80 West Main Street PO Box 7005 Freehold, NJ 07728 Tel: (732) 462-4773 Email: sjaesq@atrbklaw.com About Kestespresso LLC Kestespresso LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 24-22019) on Dec. 5, 2024, listing up to $50,000 in both assets and liabilities. Steven J. Abelson, Esq. at Abelson Law Offices represents the Debtor as counsel. KSN EXPRESS: Commences Subchapter V Bankruptcy Proceeding --------------------------------------------------------- On January 2, 2025, KSN Express Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Illinois. According to court filing, the Debtor reports $3,185,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About KSN Express Inc. KSN Express Inc. is a transportation company based in Volo, Illinois. KSN Express Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ill. Case No. 25-00011) on January 2, 2025. In its petition, the Debtor reports total assets of $21,000 and total liabilities of $3,185,000 Honorable Bankruptcy Judge Michael B. Slade handles the case. Richard N. Golding, Esq. of THE GOLDING LAW OFFICES, P.C. represents the Debtor as counsel. LA PLAZA MEXICO: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: La Plaza Mexico, LLC 2400 Ariano Lane Ceres, CA 95307 Chapter 11 Petition Date: January 2, 2025 Court: United States Bankruptcy Court Eastern District of California Case No.: 25-90003 Judge: Hon. Ronald H Sargis Debtor's Counsel: David C. Johston, Esq. DAVID C. JOHNSTON 1600 G Street, Suite 102 Modesto, CA 95354 Tel: (209) 579-1150 Email: david@johnstonbusinesslaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jose Lopez Martinez as managing member. 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/WLD4PRY/La_Plaza_Mexico_LLC__caebke-25-90003__0001.0.pdf?mcid=tGE4TAMA LA PLAZA: Commences Subchapter V Bankruptcy Proceeding ------------------------------------------------------ On January 3, 2025, La Plaza Mexico LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern 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. About La Plaza Mexico LLC La Plaza Mexico LLC is a limited liability company operating from Ceres, California. La Plaza Mexico LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 25-90003) on January 3, 2025 In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Ronald H. Sargis handles the case. David C. Johnston, Esq. represents the Debtor as counsel. LAW OFFICE OF JESSICA: Seeks to Use Cash Collateral --------------------------------------------------- The Law Office of Jessica Piedra, LLC asked the U.S. Bankruptcy Court for the Western District of Missouri for authority to use cash collateral and provide adequate protection. The U.S. Small Business Administration is the holder of a promissory note which was executed in August 2020 in the principal amount of $44,200 and the balance is $50,836. SBA asserts a senior perfected security interest in all assets of the law firm, including cash, cash equivalents, account receivables and other assets. The law firm proposed to use the cash collateral that existed as of the filing of the petition and in exchange, grant SBA a replacement lien on the post-petition cash collateral (made up of future bank deposits, accounts receivable and other cash assets). Further, the law firm proposed to pay SBA, as a cash collateral and as an adequate protection payment (for all assets described in SBA's Security Agreement), the sum of $215 per month. Previously, the law firm has been paying $25 per month. Commencing on Dec. 28, 2024, and by the 28th day of each month thereafter until a plan of reorganization is confirmed. The law firm will pay SBA's adequate protection payment. The law firm is unsure whether the payment will be $25 or $215 per month. The law firm's schedule reflects other possible secured creditors: Forward Financing, LLC, with a loan on Dec. 7, 2023, ODK Capital LLC, also known as On Deck Capital, with a loan on Nov. 21, 2023, Capitalize Group, LLC with a loan inMay 2024; and Newbury Capital, LLC with a loan on Oct. 8, 2024. A court hearing is set for Jan. 14. Objections are due by Jan. 13. 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. LEFEVER MATTSON: Court Approves Deal to Use Cash Collateral ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California approved a stipulation entered into by LeFever Mattson, Red Cedar Tree LP, Red Mulberry Tree, LP and Federal Home Loan Mortgage Corporation (Freddie Mac), authorizing the use of the secured lender's cash collateral. The court order authorized the companies to use Freddie Mac's cash collateral for the period from Dec. 1, 2024 to March 31, to pay the expenses of operating and maintaining the Carmichael Apartments owned by Red Cedar and the Courtyard Cottages owned by Red Mulberry. The court order also approved the use of cash collateral for the monthly debt service payments for Red Cedar in the amount of $23,797.30; and the monthly debt service payments for Red Mulberry in the amount of $18,158.20. Freddie Mac will be granted replacement liens, co-extensive with its pre-bankruptcy liens, on the properties and all proceeds and products of those pre-bankruptcy liens in case of any diminution in the value of its interest in its collateral. As additional protection, Freddie Mac may assert rights to an administrative expense. About LeFever Mattson LeFever Mattson, a California corporation, manages a large real estate portfolio. Timothy LeFever and Kenneth W. Mattson each owns 50% of the equity in the company. Based in Citrus Heights, Calif., LeFever Mattson manages a portfolio of more than 200 properties, comprised of commercial, residential, office, and mixed-use real estate, as well as vacant land, located throughout Northern California, primarily in Sonoma, Sacramento, and Solano Counties. It generates income from the properties through rents and use the proceeds to fund its operations. LeFever Mattson and its affiliates filed voluntary Chapter 11 petitions (Bankr. N.D. Calif. Lead Case No. 24-10545) on September 12, 2024. At the time of the filing, LeFever Mattson listed $100 million to $500 million in assets and $10 million to $50 million in liabilities. Judge Charles Novack oversees the cases. Thomas B. Rupp, Esq., at Keller Benvenutti Kim LLP represents the Debtors as counsel. Kurtzman Carson Consultants, LLC is the Debtors' claims and noticing agent. The U.S. Trustee for Region 17 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. LION ELECTRIC: Reduces Workforce Amid CCAA Restructuring -------------------------------------------------------- The Lion Electric Company announced on Jan. 3, 2025, that a reduction of its workforce through temporary layoffs of approximately 150 employees, in both Canada and the United States, across all departments within the organization. Following this workforce reduction, Lion will have approximately 160 employees who will mainly focus on assisting Lion's customers with the maintenance and servicing of school buses and trucks. The Company was required to implement this workforce reduction in the context of its ongoing proceedings under the Companies' Creditors Arrangement Act as per the terms and conditions of the debtor-in-possession financing provided by the lenders under the Company's senior revolving credit agreement in connection with such proceedings, in order to fund the sale and investment solicitation process being conducted in the context of the proceedings as well as the Company's operations during the restructuring process. As previously announced, the Superior Court of Quebec (Commercial Division) issued on December 18, 2024 an initial order granting the Company and its subsidiaries protection under the CCAA as well as an order approving a SISP in respect of the Company's business or assets. Documents relating to the Company's restructuring process are available on the monitor's website at https://www.insolvencies.deloitte.ca/en-ca/pages/Lion-Electric-Company.aspx. ABOUT LION ELECTRIC Lion Electric is an innovative manufacturer of zero-emission vehicles, including all electric school buses. Lion is a North American leader in electric transportation and designs, builds and assembles many of its vehicles' components, including chassis, battery packs, truck cabins and bus bodies. Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs. Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life. Lion shares are traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol LEV. LITTLE MINT: Seeks Bankruptcy Protection in North Carolina ---------------------------------------------------------- On December 31, 2024, The Little Mint Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of North Carolina. According to court filing, the Debtor reports between $10 million and $50 million in debt owed to 200 and 999 creditors. The petition states funds will be available to unsecured creditors. About The Little Mint Inc. The Little Mint Inc., doing business as Hwy 55 Burgers Shakes & Fries, owns multiple Hwy 55 Burgers, Shakes & Fries restaurants. The Little Mint Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-04510) on December 31, 2024. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. Judge Joseph N. Callaway presides over the case. Rebecca F. Redwine, Esq. of HENDREN, REDWINE & MALONE, PLLC represents the the Debtor as counsel. LITTLE MINT: Seeks to Use Cash Collateral ----------------------------------------- The Little Mint, Inc. asked the U.S. Bankruptcy Court for the Eastern District of North Carolina, New Bern Division, for authority to use cash collateral. Certain proceeds generated from the company's continuing operations may constitute cash collateral of the U.S. Small Business Administration, Johnson Breeders, Inc., Corporation Service Company, Institution Food House, Inc., and Performance Food Group, Inc. The SBA filed a UCC-1 financing statement against Dylan James Management, Inc. with the North Carolina Secretary of State on February 23, 2022 in connection with a $500,000 EIDL loan dated February 9, 2022. Dylan James merged with and into Little Mint on July 27, 2023. As of the petition date, the outstanding balance owed to the SBA on this loan is believed to be approximately $543,638. The SBA filed a UCC-1 financing statement against Moon Unit, Inc. with the North Carolina Secretary of State on February 24, 2022, in connection with a $500,000 EIDL loan dated February 10, 2022. Moon Unit merged with and into Little Mint on July 27, 2023. As of the petition date, the outstanding balance owed to the SBA on this loan is believed to be approximately $543,638. Johnson Breeders filed a UCC-1 financing statement against Little Mint with the North Carolina Secretary of State on March 19, 2024. As of the petition date, the outstanding balance owed to Johnson Breeders is believed to be approximately $4.1 million. CSC filed a UCC-1 financing statement against the company with the North Carolina Secretary of State on May 15, 2024. It is unclear which creditor filed this financing statement. Institution Food filed a UCC-1 financing statement against the company with the North Carolina Secretary of State on June 27, 2024. As of the petition date, there is no outstanding balance owed to Institution Food. Performance Food filed a UCC-1 financing statement against the company with the North Carolina Secretary of State on July 9, 2024. As of the petition date, the outstanding balance owed to Performance Food is believed to be approximately $1.013 million. Performance Food is unsecured as to cash collateral. Little Mint proposed that the secured creditors should be allowed, as adequate protection for the company's use of cash collateral, a post-petition replacement lien and security interest on the same assets to which their liens attached pre-bankruptcy, to the same extent and amounts and with the same validity and priority as existed on the petition date. Little Mint seeks authority to use cash collateral through and including (i) the effective date of a confirmed plan of reorganization, (ii) a sale of substantially all assets of the estate, or (iii) conversion of the case to Chapter 7, whichever may first occur. A hearing on the matter is set for Jan. 7. About The Little Mint Inc. The Little Mint, Inc. operates a fast casual restaurant chain known as "Hwy 55 Burger Shakes & Fries". The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 24-04510) on December 31, 2024. In the petition signed by Kenneth K. Moore, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Joseph N. Callaway oversees the case. Rebecca F. Redwine, Esq., at Hendren, Redwine & Malone, PLLC, represents the Debtor as legal counsel. LONERO ENGINEERING: Files Chapter 11 Bankruptcy Protection ---------------------------------------------------------- On January 3, 2025, Lonero Engineering Co., Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Michigan. According to court filing, the Debtor reports between $100,000 and $500,000 in debt owed to 200 and 999 creditors. The petition states funds will be available to unsecured creditors. About Lonero Engineering Co., Inc. Lonero Engineering Co., Inc. is based in Troy, Michigan, operates as a specialized machine shop providing precision machining services for complex, close-tolerance applications. Lonero Engineering Co., Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-40041) on January 3, 2025 In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Lisa S. Gretchko handles the case. John J. Stockdale, Jr. represents the Debtor as counsel. LTL MGT: Houlihan Lokey's $1.75MM Fee Affirmed in Chapter 11 Case ----------------------------------------------------------------- Vince Sullivan of Law360 Bankruptcy Authority reports that a federal judge in New Jersey affirmed a $1.75 million discretionary fee for investment banking firm Houlihan Lokey Capital for its services representing talc claimants in the second Chapter 11 case of Johnson & Johnson's former talc unit, LTL Management. About J&J Talc Units LLT Management, LLC (formerly known as LTL Management LLC) was a subsidiary of Johnson & Johnson that was formed to manage and defend thousands of talc-related claims and oversee the operations of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue streams, including royalty revenue streams based on third-party sales of LACTAID, MYLANTA/MYLICON and ROGAINE products. LTL Management first filed a petition for Chapter 11 protection (Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov. 16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time of the filing, the Debtor was estimated to have $1 billion to $10 billion in both assets and liabilities. In the 2021 case, LTL Management tapped Jones Day and Rayburn Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon LLP as special counsel; McCarter & English, LLP as litigation consultant; Bates White, LLC as financial consultant; and AlixPartners, LLP as restructuring advisor. Epiq Corporate Restructuring, LLC, served as the claims agent. On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9 reconstituted the talc claimants' committee and appointed two separate committees: (i) the official committee of talc claimants I, which represents ovarian cancer claimants, and (ii) the official committee of talc claimants II, which represents mesothelioma claimants. The official committee of talc claimants I tapped Genova Burns LLC, Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its legal counsel. Meanwhile, the official committee of talc claimants II is represented by the law firms of Cooley LLP, Bailey Glasser LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and Sherman Silverstein Kohl Rose & Podolsky P.A. Re-Filing of Chapter 11 Petition On Jan. 30, 2023, a panel of the Third Circuit issued an opinion directing this Court to dismiss the 2021 Chapter 11 Case on the basis that it was not filed in good faith. Although the Third Circuit panel recognized that the Debtor "inherited massive liabilities" and faced "thousands" of future claims, it concluded that the Debtor was not in financial distress before the filing. On March 22, 2023, the Third Circuit entered an order denying the Debtor's petition for rehearing. The Third Circuit entered an order denying LTL's stay motion on March 31, 2023, and, on the dame day, issued its mandate directing the Bankruptcy Court to dismiss the 2021 Chapter 11 Case. The Bankruptcy Court entered an order dismissing the 2021 Case on April 4, 2023. Johnson & Johnson on April 4, 2023, announced that its subsidiary LTL Management LLC (LTL) has re-filed for voluntary Chapter 11 bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain approval of a reorganization plan that will equitably and efficiently resolve all claims arising from cosmetic talc litigation against the Company and its affiliates in North America. In the new filing, J&J said it has agreed to contribute up to a present value of $8.9 billion, payable over 25 years, to resolve all the current and future talc claims, which is an increase of $6.9 billion over the $2 billion previously committed in connection with LTL's initial bankruptcy filing in October 2021. LTL also has secured commitments from over 60,000 current claimants to support a global resolution on these terms. In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, ruled that the second bankruptcy case should be dismissed. 3rd Try In May 2024, J&J announced its subsidiary LLT Management LLC is soliciting support for a consensual prepackaged bankruptcy plan to resolve its talc-related liabilities. Under the terms of the plan, a trust would be funded with over $5.4 billion in the first three years and more than $8 billion over the course of 25 years, which J&J calculates to have a net present value of $6.475 billion. Claimants must cast their vote to accept or reject the Plan by 4:00 p.m. (Central Time) on July 26, 2024. A solicitation package may be requested at www.OfficialTalcClaims.com or by calling 1-888-431-4056. If the Plan is accepted by at least 75% of voters, a bankruptcy may be filed under the case name In re: Red River Talc LLC in a bankruptcy court in Texas or in the bankruptcy court of another jurisdiction. Epiq Corporate Restructuring, LLC is serving as balloting and solicitation agent for LLT. On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D. Tex. Case No. 24-90505). Porter Hedges LLP and Jones Day serve as counsel in the new Chapter 11 case. Epiq is the claims agent. Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting Counsel. Randi S. Ellis is the proposed prepetition legal representative of future claimants. LUMIO HOLDINGS: Court Rejects Ch.11 Plan Opt-Out Releases --------------------------------------------------------- Ben Zigterman of Law360 reports that a Delaware bankruptcy judge on January 3, 2024, rejected the opt-out mechanism for obtaining releases for third parties in Solar panel provider Lumio Holdings LLC's Chapter 11 plan, but said she would allow it to solicit votes on the plan. About Lumio Holdings Lumio Holdings, Inc., is a privately-held residential solar provider in Lehi, Utah, which is fully vertically integrated with a full suite of photovoltaic solar system sales, installation and operations. Lumio Holdings and Lumio HX, Inc. filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 24-11916) on Sept. 3, 2024. Jeffrey T. Varsalone, chief restructuring officer, signed the petitions. At the time of the filing, the Debtors reported $100 million to $500 million in both assets and liabilities. Judge J. Kate Stickles oversees the cases. The Debtors tapped Morris, Nichols, Arsht & Tunnell, LLP, Houlihan Lokey Capital, Inc. and C Street Advisory Group as legal counsel, investment Banker and strategic communications advisor, respectively. Stretto, Inc. is the claims and noticing agent and administrative advisor. LUMIO HOLDINGS: Defends Chapter 11 Plan Releases ------------------------------------------------ Vince Sullivan of Law360 Bankruptcy Authority reports that on January 2, 2025, solar panel provider Lumio Holdings LLC defended its Chapter 11 plan and disclosure documents, stating that the claim releases included in the plan are consensual and do not violate the U.S. Supreme Court's Purdue Pharma decision, which banned nonconsensual releases. About Lumio Holdings Lumio Holdings, Inc., is a privately-held residential solar provider in Lehi, Utah, which is fully vertically integrated with a full suite of photovoltaic solar system sales, installation and operations. Lumio Holdings and Lumio HX, Inc. filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 24-11916) on Sept. 3, 2024. Jeffrey T. Varsalone, chief restructuring officer, signed the petitions. At the time of the filing, the Debtors reported $100 million to $500 million in both assets and liabilities. Judge J. Kate Stickles oversees the cases. The Debtors tapped Morris, Nichols, Arsht & Tunnell, LLP, Houlihan Lokey Capital, Inc. and C Street Advisory Group as legal counsel, investment Banker and strategic communications advisor, respectively. Stretto, Inc. is the claims and noticing agent and administrative advisor. M & M BUCKLEY: Seeks Cash Collateral Access Until Jan. 31 --------------------------------------------------------- M & M Buckley Management, Inc. asked the U.S. Bankruptcy Court for the Northern District of Illinois for authority to use cash collateral until Jan. 31. The company requires the interim use of cash collateral to pay the necessary costs associated with the operation and maintenance of its multi-unit rental building in Park Forest, Ill. On Dec. 23, 2019, M & M executed a mortgage and assignment of rents in favor of Community Loan Servicing, LLC as security for a promissory note executed by the company in the principal amount of $875,000. To secure its obligation to pay all amounts due under the note, M & M granted a security interest in the rents received from the real property to Community. On Feb. 6, 2024, Community caused to be filed a complaint to foreclose mortgage against the real property in the Circuit Court of Cook County, Chancery Division. On Nov. 12, 2024, a judgment of foreclosure and sale was entered in favor of Community in the foreclosure case. As of the petition date, the total amount due and owing under the judgment was approximately $1.043 million. M & M estimates that the real property has a current market value of at least $1.2 million. As adequate protection, Community will be granted valid and perfected replacement liens in the real property and the collateral to the same extent and with the same priority as held pre-bankruptcy. Property insurance will be kept on the real property, listing Community as a lienholder and loss payee. A hearing on the matter is set for Jan. 8. About M & M Buckley Management Inc. M & M Buckley Management, Inc. is a professional property management company based in Richton Park, IL. It specializes in managing residential and commercial properties. M & M sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-19108) on December 23, 2024, with $1 million to $10 million in both assets and liabilities. Melvin T. Buckely, Jr., president of M & M, signed the petition. Judge Janet S. Baer handles the case. The Debtor is represented by Gregory K. Stern, Esq., at Gregory K. Stern, P.C. MARTINS INTERSTATE: To Sell Edgewater Property for $2.1-Mil. ------------------------------------------------------------ Martins Interstate Properties LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, to sell real property located at 500 Pullman Road, Edgewater, Florida, subject to all liens, encumbrances, and interests. The Debtor is a Florida limited liability company, wholly owned and managed by Roberto Martins. The Debtor obtains a secured loan as well as tax debt over the course of the business operations for the past five years. The Debtor enters into a purchase and sale agreement with Adventure Science LLC, in which the purchase will deposit $50,000.00 as earnest money and the total price of sale will be $2,100,000. The Debtor asserts that the sale of the property would result in an efficient and cost-effective manner of disposing of the estate’s interest in the assets, while simultaneously creating a benefit to the bankruptcy estate and creditors of the Debtor. The lienholders of the property are Fairwinds Credit Union first mortgage and the property tax debt. About Martins Interstate Properties LLC Martins Interstate Properties owns two properties in Edgewater, Fla., and Matthews, S.C., with a total current value of $1.30 million. Martins Interstate Properties filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02516) on May 20, 2024, listing $1,296,406 in assets and $910,980 in liabilities. Roberto Martins, Sr., manager, signed the petition. Judge Tiffany P. Geyer presides over the case. Bryan K. Mickler, Esq., at the Law Offices of Mickler & Mickler, LLP represents the Debtor as bankruptcy counsel. MARYLAND PROTON: Defaults on $267-Mil. Municipal Bonds ------------------------------------------------------ Martin Z. Braun of Bloomberg News reports that the Maryland Proton Treatment Center, a Baltimore medical facility specializing in cancer treatment with proton beams, has defaulted on approximately $267 million in unrated municipal bonds issued in 2018 by a Wisconsin-based agency, according to a securities filing. Affiliated with the University of Maryland School of Medicine, the center raised about $360 million in municipal bonds through the Public Finance Authority of Madison, Wisconsin, which facilitates bond issuances for projects across the U.S. The trustee has stated that interest payments will not be made on the Series 2018A-1 and Series 2018A-2 bonds. This follows a prior default by the center on $93 million of the same bond issue. About Maryland Proton Treatment Maryland Proton Treatment is a Baltimore medical facility that specializes in cancer treatment with proton beams. MAXITO REALTY: Sec. 341(a) Meeting of Creditors on February 3 ------------------------------------------------------------- On January 2, 2025, Maxito Realty Corp. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of New York. 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) filed by Office of the United States Trustee to be held on February 3, 2025 at 03:00 PM at Telephonic Meeting: Phone 1 (877) 953-2748, Participant Code 3415538#. About Maxito Realty Corp. Maxito Realty Corp. based in New Hyde Park, NY, operates as a real estate corporation. Maxito Realty Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y.Case No. 25-40014) on January 2, 2025 In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Jil Mazer-Marino handles the case. John Lehr, Esq. of John Lehr, P.C. presides over the case. MAXITO REALTY: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Maxito Realty Corp. 651 South 9th Street New Hyde Park, NY 11040 Chapter 11 Petition Date: January 2, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-40014 Judge: Hon. Jil Mazer-Marino Debtor's Counsel: John Lehr, Esq. JOHN LEHR, P.C. 1979 Marcus Avenue 210 New Hyde Park NY 11042 E-mail: jlehr@johnlehrpc.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jenny James as president. The Debtor filed an empty 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/GJZKGMY/Maxito_Realty_Corp__nyebke-25-40014__0001.0.pdf?mcid=tGE4TAMA METRO MATTRESS: Seeks to Extend Plan Exclusivity to May 2, 2025 --------------------------------------------------------------- Metro Mattress Corp. asked the U.S. Bankruptcy Court for the Northern District of New York to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to May 2, 2025 and July 1, 2025, respectively. The Debtor operates over 40 retail stores throughout New York State, as well as a warehouse facility. Through this bankruptcy proceeding, the Debtor intends to reorganize its operations. Furthermore, since the commencement of this case, the Debtor has accomplished a significant step in right sizing its business and moving along the path toward reorganization. The Court authorized the Debtor to conduct store closing sales at its New England stores and to reject the Debtor 's leases of non-residential real property located in the New England market. The Debtor claims that it must develop and implement additional initiatives in order to be in a position to propose a plan of reorganization, while it has taken or is in the process of taking a number of necessary steps towards a successful reorganization. Certain of those initiatives will likely require negotiations with multiple stake holders, including secured creditors, contract and lease counterparties, and the Committee. The Debtor notes that the purpose of Bankruptcy Code Section 1121(d) is to provide the debtor with a full and fair opportunity to propose a plan of reorganization without the disruption that would be caused by other parties simultaneously filing competing plans. The Debtor asserts that terminating the exclusivity periods before the Debtor has an adequate opportunity to resolve key issues affecting any proposed plan of reorganization will frustrate the purpose of Bankruptcy Code Section 1121. The Debtor intends to file a proposed plan of reorganization as soon as practicable. Under the circumstances of these cases, however, the Debtor submits that the initial 120-day exclusivity period has not permitted a sufficient amount of time to permit them to achieve this objective. Metro Mattress Corp. is represented by: Jeffrey A. Dove, Esq. Barclay Damon LLP Barclay Damon Tower 125 East Jefferson Street Syracuse, NY 13202 Telephone: (315) 413-7112 E-mail: jdove@barclaydamon.com About Metro Mattress Corp. Metro Mattress Corp. is specialty retailer of mattresses serving New York, Connecticut, New Hampshire, Massachusetts, and Rhode Island customers. Metro Mattress Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-30773) on Sept. 4, 2024. In the petition filed by Dino Cifelli, chief executive officer, the Debtor estimated assets between $1 million and $10 million and liabilities between $10 million and $50 million. Judge Wendy A. Kinsella oversees the case. The Debtor tapped Barclay Damon LLP as bankruptcy counsel, Mackenzie Hughes LLP as special labor and employment counsel, and NextPoint LLC as financial advisor. MIDWEST MOBILE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Midwest Mobile Imaging, LLC 3171 East Sunshine, # E121 Springfield, MO 65804 Business Description: The Debtor is a full-service mobile diagnostic x-ray services provider. Chapter 11 Petition Date: January 3, 2025 Court: United States Bankruptcy Court Western District of Missouri Case No.: 25-60002 Judge: Hon. Brian T Fenimore Debtor's Counsel: Colin Gotham, Esq. EVANS & MULLINIX, P.A. 7225 Renner Road, Suite 200 Shawnee, KS 66217 Tel: (913) 962-8700 Fax: (913) 962-8701 E-mail: cgotham@emlawkc.com Total Assets: $100,201 Total Liabilities: $1,628,151 The petition was signed by Dan Taylor as 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/7GBMNBY/Midwest_Mobile_Imaging_LLC__mowbke-25-60002__0001.0.pdf?mcid=tGE4TAMA MILFORD CRAFT: Emerges from Chapter 11 Bankruptcy ------------------------------------------------- Julie Littman of Restaurant Dive reports that the World of Beer has officially emerged from Chapter 11 bankruptcy as of December 2024, according to a press release provided to Restaurant Dive. During the bankruptcy process, the company restructured its debt and noted ongoing interest from potential franchise partners. The chain filed for bankruptcy in August 2024, operating 33 locations at the time, after closing 14 units over the previous year, according to Restaurant Dive. In an effort to address the cash flow issues that contributed to its bankruptcy, World of Beer is focusing on expansion. CEO Paul Avery has plans to open four to five new franchise locations each year over the next five years, potentially doubling the company's store count by 2030, the report states. The company concluded 2024 with a new opening in Fort Worth, Texas, on December 21, following new locations in Hinesville, Georgia, Odessa, and Jacksonville, Florida. A restaurant in Annapolis, Maryland, is also set to open early this year. "We are dedicated to our loyal customers, employees, and franchisees, and remain focused on fostering innovation and growth in a competitive market," said Avery. "This is just the start of an exciting new chapter for our brand." World of Beer filed for bankruptcy due to challenges including consumer pushback on price increases, debts to landlords and banks, legal disputes with two franchisees, and high interest rates that impacted cash flow. The company had succeeded with a low-capital investment model for franchising, but many franchisees lacked the necessary restaurant experience, resulting in poor management of their locations, according to court documents. The company also encountered legal troubles related to a food and beverage program introduced by Avery in 2013 after acquiring a controlling stake in the company. Franchisees were reluctant to invest more capital and modify kitchen operations, leading to lawsuits that resulted in lost royalty payments and rising legal fees, according to report. About Milford Craft Milford Craft, LLC, runs a franchise bar and restaurant called "World of Beer" in Milford, Connecticut. Milford Craft sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Conn. Case No. 17-30847) on June 6, 2017. James D. Cecil, manager of New England WOB LLC, signed the petition. On June 20, 2017, the Debtor filed an amended petition indicating that it was a Small Business Debtor under 11 U.S.C. Sec. 101(51D) as well as, inter alia, its Schedules and Statement of Financial Affairs. The Debtor disclosed that it had assets totaling $408,506, and total unsecured debts of $251,296. Judge Ann M. Nevins presides over the case. The Debtor hired Fleischer Law, LLC, as counsel, and the Law Office of Randolph T. Lovallo, P.C., as special counsel. MIRACLE LEAF: Seeks to Hire Sardi Law PLLC as Bankruptcy Counsel ---------------------------------------------------------------- Miracle Leaf Corp seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire Sardi Law, PLLC as counsel. The firm will render these services: a. give advice to the Debtor with respect to his powers and duties as a Subchapter V debtor-in-possession; b. advise the Debtor with respect to his responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the Court; c. prepare motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the administration of the Case; d. protect the interests of the Debtor in all matters pending before the Court; e. represent the Debtor in negotiation with his creditors in the preparation of a plan; and f. perform all other legal services for the Debtor, which may be necessary. Sardi Law has agreed to perform said services at the following hourly rates: Legal Assistants $120 Attorney $335 to $500 Carlos E. Sardi $500 Sardi Law received a fee retainer in the amount of $20,000, as well as a cost deposit for the filing fee, in the amount of $1,738. As disclosed in the court filings, Sardi Law represents any interest adverse to the Debtor, its estate, or its creditors, and is disinterested as required by 11 U.S.C. Sec. 327(a). The firm can be reached through: Carlos E. Sardi, Esq. SARDI LAW PLLC 11410 N. Kendall Dr., Suite 208 Miami, FL 33176 Tel: (305) 697-8690 Email: carlos@sardilaw.com About Miracle Leaf Corp Miracle Leaf Corp sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-22842) on Dec 9, 2024, listing up to $50,000 in both assets and liabilities. Judge Robert A Mark presides over the case. Carlos E. Sardi, Esq. at Sardi Law, PLLC represents the Debtor as counsel. MISTER SUBS: Files Chapter 11 Bankruptcy in New York ---------------------------------------------------- On January 3, 2025, Mister Subs II Inc.filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of New York. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Mister Subs II Inc. Mister Subs II Inc. operating as Subs Gourmet Deli, is a Bronx-based deli grocery retailer located at 1070 Ogden Avenue. Mister Subs II Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-40021) on January 3, 2025 In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Elizabeth S. Stong handles the case. MY SISTERS: Hires Jeffrey J. McCue & Company as Accountant ---------------------------------------------------------- My Sisters Keeper Personal Care and Staffing, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to employ Jeffrey J. McCue & Company, P.C. as accountant. The firm will assist in processing the quarterly and annual payroll taxes from 2015 through September 30, 2024. The firm will be paid at these rates: Certified Public Accountant $150 per hour Senior Accountant $120 per hour Staff Members $70 per hour The firm will be paid a retainer in the amount of $10,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Jeffrey J. McCue, a partner at Jeffrey J. McCue & Company, P.C., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Jeffrey J. McCue, Esq. Jeffrey J. McCue & Company, P.C. 813 Blackstone Road Connellsville, PA 15425 Tel: (724) 628-9091 About My Sisters Keeper Personal Care and Staffing, LLC My Sisters Keeper Personal Care and Staffing, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-22526) on October 14, 2024, listing $50,001 to $100,000 in assets and $500,001 to $1 million in liabilities. David Z. Valencik, Esq. at Calaiaro Valencik represents the Debtor as counsel. N.C. 17-19: Seeks to Hire James J. Rufo as Attorney --------------------------------------------------- N.C. 17-19 Adams Street LLC seeks approval from the U.S. Bankruptcy Court for Southern District of New York to hire The Law Office of James J. Rufo as its attorney. The firm's services include: a. advising the Debtor concerning the conduct of the administration of this bankruptcy case; b. preparing all necessary applications and motions as required under the Bankruptcy Code, Federal Rules of Bankruptcy Procedure, and Local Bankruptcy Rules; c. preparing a disclosure statement and plan of reorganization; and d. performing all other legal services that are necessary to the administration of the case. The firm will be paid at these rates: James J. Rufo $500 per hour Paralegal $200 per hour The firm received from the Debtor a retainer of $11,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. James J. Rufo, Esq., a partner at Law Office of James J. Rufo, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: James J. Rufo, Esq. Law Office of James J. Rufo 222 Bloomingdale Road, Suite 202 White Plains, NY 10605 Tel: (914) 600-7161 Email: jrufo@jamesrufolaw.com About N.C. 17-19 Adams Street LLC N.C. 17-19 Adams Street LLC is the fee simple owner of the real property located at 17-19 Adams Street, Bedford Hills, NY 10507 having an appraised value of $1.6 million. N.C. 17-19 Adams Street LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-23097) on December 17, 2024. In the petition filed by Nuo Camaj, as sole owner and member, the Debtor reports total assets of $1,600,100 and total liabilities of $2,664,197. Honorable Bankruptcy Judge Sean H. Lane handles the case. The Debtor is represented by James J. Rufo, Esq. THE LAW OFFICE OF JAMES J. RUFO. NEWS DIRECT: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: News Direct Corp. 23 S Main Street Norwalk, CT 06854-5903 Business Description: News Direct is a news & content distribution platform. Chapter 11 Petition Date: January 3, 2025 Court: United States Bankruptcy Court District of Connecticut Case No.: 25-50005 Judge: Hon. Julie A Manning Debtor's Counsel: Scott M. Charmoy, Esq. CHARMOY & CHARMOY, LLC 1465 Post Road East Suite 100 Westport CT 06880 Tel: 203-255-8100 Email: scottcharmoy@charmoy.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Gregg Castano as CEO. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/E3B5ZQQ/News_Direct_Corp__ctbke-25-50005__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/E662G2A/News_Direct_Corp__ctbke-25-50005__0001.0.pdf?mcid=tGE4TAMA NUMBER HOLDINGS: Unsecureds Will Get 0.5% to 2.0% in Plan --------------------------------------------------------- Number Holdings, Inc., and affiliates filed with the U.S. Bankruptcy Court for the District of Delaware a Disclosure Statement for Joint Chapter 11 Plan dated December 20, 2024. The Company opened its first store in 1982 and expanded from there, opening hundreds of stores over the next several decades across several states in the Southwestern United States, including California, Texas, Arizona, and Nevada. As of the Petition Date, the Company operated 371 "extreme value" retail stores focused on selling merchandise primarily at a price point of 99 cents or less. On March 29, 2024, the Debtors entered into that certain Consulting and Marketing Services Agreement for Multiple Asset Categories (the "Consulting Agreement") with Hilco Merchant Resources, LLC and Hilco Real Estate, LLC (together, "Hilco"). The Consulting Agreement contemplated that Hilco would assist the Debtors to, among other things, conduct store closing sales, sell furniture, fixtures and equipment, evaluate the Debtors’ real estate interests, and prepare the stores for turnover to the applicable landlords and third parties. Hilco conducted the store closing sales from April 5, 2024 to May 27, 2024. Following the Petition Date, the Debtors and their advisors began to engage with numerous potential assignees for the leases of the store locations that would no longer be operating as of April 30, 2024 (the "April Leases"). As a result of this process, Dollar Tree Stores, Inc. agreed to purchase the designation rights to 58 of the April Leases (i.e., an option to instruct the Debtors to assume up to 58 of the April Leases on or before May 31, 2024 and assign any of such assumed leases to Dollar Tree). Thereafter, following Court approval of the Bidding Procedures, the Debtors engaged in negotiations with numerous potential bidders and received over 150 Qualified Bids (in addition to the Stalking Horse Bid) for various of their assets. On May 21, 2024, the Debtors held an auction (the "Auction"), online and in Milbank's office, for the sale of over 300 leased and owned properties. As a result of the Auction, the Debtors sold the designation rights to over 170 leases for $15.35 million to Dollar Tree, sold intellectual property for $150,000, and obtained approval of the assignment of approximately 20 leases and the sale of 44 owned properties to various purchasers (collectively, the "Sales"). The Creditors' Committee was involved in the sale negotiations and supported the Sales. On August 12, 2024, the Debtors obtained the Order (I) In Aid of the Sale Order; (II) Approving the Alternative Purchase Agreement; and (III) Granting Related Relief for two properties for which an asset purchase agreement had been terminated (the "Rosewood Properties"). Through its marketing efforts, the Debtors received a $3,300,000 offer from Summitrose Investments, LP for the sale of one of the Rosewood Properties (the "Towne Centre Property") and a $1,165,000 offer from Russ Group, Inc. for the sale of the other Rosewood Property (the "Holt Property"). The sale of the Towne Centre Property closed on August 23, 2024 and the sale of the Holt Property closed on August 27, 2024, together netting approximately $4.23 million of sale proceeds. Class 5 consists of General Unsecured Claims. Except to the extent that a Holder of an Allowed General Unsecured Claim agrees to less favorable treatment, as soon as practicable after the earlier of (i) the Effective Date and (ii) the date such claim becomes an Allowed Claim, each Holder of an Allowed General Unsecured Claim will receive, in full satisfaction and settlement of, and in exchange for its Allowed General Unsecured Claim, its pro rata share (calculated based on the proportion that such Holder's Allowed General Unsecured Claim bears to the aggregate amount of Allowed General Unsecured Claims) of the Liquidating Trust Interests, which will entitle such Holder to its pro rata share of the Liquidating Trust Assets available for Distribution net of Liquidating Trust Expenses. The allowed unsecured claims total $650,000,000 to $1,000,000,000. This Class will receive a distribution of 0.5% to 2.0% of their allowed claims. Class 5 is impaired. Class 8 consists of all Equity Interests. On the Effective Date, all Equity Interests will be cancelled and discharged. No Distribution will be made on account of any Equity Interests. Except as otherwise provided in the Plan, on the Effective Date, each Debtor other than the Post-Confirmation Debtors will be dissolved, consolidated, or merged out of existence without the necessity for any other or further actions to be taken by or on behalf of such dissolving Debtor or its shareholder(s) or any payments to be made in connection therewith, except to the extent that the Plan Administrator determines, in its discretion, that the filing of a certificate of dissolution with the appropriate governmental authorities is required or warranted under the circumstances. On the Effective Date, the Liquidating Trust will be established, and the Debtors will irrevocably transfer, and will be deemed to have irrevocably transferred, all of the Liquidating Trust Assets to the Liquidating Trust in accordance with the terms of the Liquidating Trust Agreement and the Plan (except for any Post Confirmation Debtors' Retained Assets, which will vest in, and remain the asset of, the applicable Post-Confirmation Debtor) which Liquidating Trust Assets will automatically vest in the Liquidating Trust, free and clear of all Liens, Claims, charges, rights, or other encumbrances subject to and in accordance with the Plan. A full-text copy of the Disclosure Statement dated December 20, 2024 is available at https://urlcurt.com/u?l=MOC0Yc from PacerMonitor.com at no charge. Co-Counsel for the Debtors: Dennis F. Dunne, Esq. Michael W. Price, Esq. Lauren C. Doyle, Esq. Brian Kinney, Esq. MILBANK LLP 55 Hudson Yards New York, New York 10001 Tel: (212) 530-5000 Fax: (212) 530-5219 E-mail: ddunne@milbank.com mprice@milbank.com ldoyle@milbank.com binney@milbank.com -and- Robert J. Dehney, Sr., Esq. Matthew O. Talmo, Esq. Jonathan M. Weyand, Esq. Erin L. Williamson, Esq. MORRIS, NICHOLS, ARSHT & TUNNELL LLP 1201 N. Market Street, 16th Floor P.O. Box 1347 Wilmington, Delaware 19899-1347 Tel: (302) 658-9200 Fax: (302) 658-3989 E-mail: rdehney@morrisnichols.com mtalmo@morrisnichols.com jweyand@morrisnichols.com ewilliamson@morrisnichols.com About Number Holdings Founded in 1982, 99 Cents Only Stores LLC -- http://www.99only.com/ -- operate over 370 "extreme value" retail stores in California, Arizona, Nevada and Texas under the business names "99¢ Only Stores" and "The 99 Store." The Company offers its customers a wide array of quality products -- from everyday household items, to fresh produce, deli, and other grocery items, to an assortment of seasonal and party merchandise -- many of which are still priced at or below 99.99 cents. The Company's stores are primarily located in urban areas and underserved communities, many of which lack close access to traditional grocery stores. The Debtors sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10719) on April 7, 2024. In the petition signed by Christopher J. Wells, as chief restructuring officer, the Debtor disclosed up to $10 billion in both assets and liabilities. Judge Kate Stickles oversees the case. The Debtors tapped Milbank LLP as general bankruptcy counsel, Morris, Nichols, Arsht & Tunnel LLP as Delaware bankruptcy counsel, Jefferies LLC as investment banker, Alvarez & Marsal North America, LLC as financial advisor, Hilco Merchant Resources, LLC and Hilco Real Estate, LLC as retail consultant and real estate consultant, and Kroll Restructuring Administration LLC as claims and noticing agent. NW CUSTOM AIRCRAFT: Taps Karr Tuttle Campbell as Legal Counsel -------------------------------------------------------------- NW Custom Aircraft Hangars LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Washington to employ Karr Tuttle Campbell as legal counsel. The professional services that the firm will render include: a. assisting the Debtor in the investigation of the financial affairs of the estate; b. providing legal advice and assistance to the Debtor with respect to matters relating to this case and creditor distribution; c. preparing all pleadings necessary for proceedings arising under this case; and d. performing all necessary legal services for the estate in relation to this case. The firm will be paid at these rates: Steven M. Palmer $500 per hour Associates $265 to $325 per hour Paralegals $260 per hour Karr Tuttle Campbell will seek reimbursement for costs and expenses incurred in relation to representation of the estate. Steven Palmer, Esq., a member of Karr Tuttle Campbell, assured the court that his firm is a "disinterested person" within the meaning of 11 U.S.C. 101(14). The firm can be reached through: Steven M Palmer, Esq. Karr Tuttle Campbell 701 Fifth Avenue, Suite 3300 Seattle, WA 98104 Tel: (206) 224-8012 Email: spalmer@karrtuttle.com About NW Custom Aircraft Hangars LLC NW Custom Aircraft Hangars LLC 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. NW Custom Aircraft Hangars LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-13188) on December 13, 2024. In the petition filed by Duane Wilcoxon, as managing sole member, the Debtor reports total assets of $1,903,500 and total liabilities of $1,549,542. The case is overseen by Honorable Bankruptcy Judge Timothy W. Dore. The Debtor is represented by Thomas D. Neeleman, Esq. at NEELEMAN LAW GROUP, P.C. ONDAS HOLDING: Issues $18.9 Million in 3% Series B-2 Senior Notes ----------------------------------------------------------------- Ondas Holdings Inc. disclosed in a Form 8-K filed with the Securities and Exchange Commission that on Dec. 31, 2024, pursuant to the terms of a securities purchase agreement, the Company issued certain 3% Series B-2 Senior Convertible Notes in the aggregate original principal amount of $18.9 million, which New 2024 Additional Notes are convertible into shares of Common Stock under certain conditions. The New 2024 Additional Notes have an original issue discount of approximately 13% resulting in gross proceeds to the Company of approximately $16.5 million. The Company currently intends to use the net proceeds for general corporate purposes and will be primarily allocated to supporting the growth of the Company's drone business at Ondas Autonomous Systems. The New 2024 Additional Notes were issued pursuant to an indenture entered into by and between the Company and Wilmington Savings Fund Society, FSB, as trustee, dated as of Dec. 3, 2024. The Base Indenture was supplemented by the third supplemental indenture, dated as of Dec. 31, 2024, between the Company and the Trustee. The Indenture has been qualified under the Trust Indenture Act of 1939, and the terms of the New 2024 Additional Notes include those set forth in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act. The New 2024 Additional Notes have a maturity date of Dec. 31, 2026. The New 2024 Additional Notes were offered and sold pursuant to the Company's shelf registration statement on Form S-3 (File No. 333-276852) initially filed with the SEC on Feb. 2, 2024 (as such registration statement became effective on Feb. 15, 2024). On Dec. 31, 2024, the Company filed a prospectus supplement with the SEC in connection with the sale and issuance of the New 2024 Additional Notes. Oppenheimer & Co. Inc. served as the sole placement agent for the transaction pursuant to the terms of a placement agent agreement, dated Oct. 26, 2022. On Oct. 28, 2022, Ondas Holdings issued certain 3% Senior Convertible Notes in the aggregate original principal amount of $34.5 million (the "Initial Convertible Notes"), pursuant to a Securities Purchase Agreement, dated Oct. 26, 2022, by and between the Company and selected institutional investors, as amended by Amendment No. 1 to Securities Purchase Agreement and the Agreement and Waiver, dated July 21, 2023. The Initial Convertible Notes were convertible into shares of the Company's common stock, $0.0001 par value per share, and were subsequently exchanged by the Company, on a dollar-for-dollar basis, into new 3% Senior Convertible Notes. The Exchange Notes are convertible into shares of Common Stock under certain conditions more fully described in the Exchange Notes. The Exchange Notes have a maturity date of April 28, 2025. Additionally, on July 25, 2023, the Company issued certain 3% Series B-2 Senior Convertible Notes in the aggregate original principal amount of $11.5 million, pursuant to the SPA. The 2023 Additional Notes are convertible into shares of Common Stock under certain conditions more fully described in the 2023 Additional Notes. The 2023 Additional Notes have a maturity date of July 25, 2025. Additionally, on Dec. 3, 2024, the Company issued certain 3% Series B-2 Senior Convertible Notes in the aggregate original principal amount of $4.1 million, pursuant to the SPA. The Dec. 3, 2024 Additional Notes are convertible into shares of Common Stock under certain conditions more fully described in the Dec. 3, 2024 Additional Notes. The Dec. 3, 2024 Additional Notes have a maturity date of Dec. 3, 2026. Additionally, on Dec. 17, 2024, the Company issued certain 3% Series B-2 Senior Convertible Notes in the aggregate original principal amount of $11.5 million, pursuant to the SPA. The Dec. 17, 2024 Additional Notes are convertible into shares of Common Stock under certain conditions more fully described in the Dec. 17, 2024 Additional Notes. The Dec. 17, 2024 Additional Notes have a maturity date of Dec. 17, 2026. About Ondas Holdings Marlborough, Mass.-based Ondas Holdings Inc. is a provider of private wireless, drone, and automated data solutions through its subsidiaries Ondas Networks Inc., Ondas Autonomous Holdings Inc., Airobotics, Ltd, and American Robotics, Inc. Airobotics is an Israeli-based developer of autonomous drone systems. American Robotics is a leading developer of highly automated commercial drone systems. Airobotics and American Robotics operate together under OAH as a separate business unit called Ondas Autonomous Systems. Ondas Networks and Ondas Autonomous Systems together provide users in rail, energy, mining, public safety and critical infrastructure and government markets with improved connectivity, data collection capabilities, and data collection and information processing capabilities. Somerset, N.J.-based Rosenberg Rich Baker Berman, P.A., the Company's auditor since 2017, issued a "going concern" qualification in its report dated April 1, 2024, citing that the Company has experienced recurring losses from operations, negative cash flows from operations, and a working capital deficit as of Dec. 31, 2023. OPEN ARMS: Seeks to Hire Isaac Wiles & Burkholder as Counsel ------------------------------------------------------------ Open Arms Health Systems, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Ohio to hire Isaac Wiles & Burkholder LLC as counsel. The firm's services include: a. advising the Debtor with respect to its rights, powers and duties as debtor in possession; b. advising and assisting the Debtor in preparing all necessary applications, motions, answers, orders, reports, schedules and other legal documents required in connection with the administration of the Debtor's Case; c. attending meetings and negotiating with representatives of creditors and other parties in interest; d. taking all necessary action to protect and preserve Debtor's bankruptcy estate, including, without limitation, prosecuting any actions on Debtor's behalf and defending any actions commenced against the Debtor; e. advising the Debtor concerning, and assisting in the negotiation and documentation of, the refinancing or sale of assets; debt and lease restructuring; executory contract and unexpired lease assumptions or rejections; and related transactions; f. counseling and representing the Debtor regarding actions it might take to collect and recover property for the benefit of the bankruptcy estate; g. reviewing the nature and validity of liens asserted against Debtor's property and advising the Debtor concerning the enforceability of such liens; h. assisting the Debtor in formulating, negotiating and obtaining confirmation of a plan of reorganization and preparing related documents, including a disclosure statement, if required: and i. performing other legal services for and on behalf of the Debtor as may be necessary or appropriate. The firm will be paid at these rates: David Whittaker, Partner $360 per hour Other Attorneys $360 per hour Legal Assistant $50 to $75 per hour The firm received a retainer in the amount of $5,000. David M. Whittaker Esq., a partner at Isaac Wiles & Burkholder LLC, disclosed in the court filings that his firm is a "disinterested person," as such term is defined by section 101(14) of the Bankruptcy Code. The firm can be reached through: David M. Whittaker Esq. Isaac Wiles & Burkholder LLC Two Miranova Place, Suite 700 Columbus, OH 43215 Phone: (614) 221-2121 Direct line: (614) 340-7431 Fax: (614) 365-9516 Email: dwhittaker@isaacwiles.com About Open Arms Health Systems Open Arms Health Systems, LLC -- https://www.oaohio.com -- is a health care business (as defined in 11 U.S.C. Sec. 101(27A)). Open Arms Health Systems sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ohio. Case No. 24-54305) on October 25, 2024, with $500,000 to $1 million in assets and $1 million to $10 million in liabilities. Christopher W. Allison, a member of Open Arms Health Systems, signed the petition. Judge Mina Nami Khorrami oversees the case. The Debtor is represented by David M. Whittaker, Esq., at Isaac Wiles. ORCHARD PARK: Updates Unsecureds & Secured Claims Pay Details ------------------------------------------------------------- Orchard Park Equity Associates, LLC, submitted a Second Amended Disclosure Statement with respect to the First Amended Chapter 11 Plan of Liquidation. The Plan is a plan of liquidation. Funds distributed under the Plan will consist of funds accumulated by OPEA as of the Effective Date and raised during the duration of the plan through asset sales and any additional funds. Given the Debtor's financial distress, it is utilizing the bankruptcy process to obtain a respite from having to defend against multiple lawsuits, to provide a single forum to address the litigation, and to hopefully emerge in a position to complete its wind down efforts for the benefit of the other creditors besides LSSB and if possible, to return some money to the equity holders. The Plan is a plan of liquidation that provides for payment to creditors from (i) funds already accumulated and in the possession of Debtor's Chapter 11 counsel and (ii) funds raised through the sale of the assets of the Debtor. Class 2 consists of Secured Mortgage Claim (Mortgage Holder). Claims will either be paid in full or in order of priority until satisfaction of the claim. Class 3 consists of Other Secured Claims. Claims will either be paid in full or in order of priority until satisfaction of the claim. To the extent that claim holders in Class 3 cannot be paid in full, they will be paid in order of priority with the funds remaining after paying classes 1 to 2. Class 4 consists of General Unsecured Claims. Claims will either be paid in full until satisfaction of the claim or, to the extent claim holders in Class 4 cannot be paid in full, they will be paid a pro rata share of the funds remaining after paying classes 1 to 3. This Class is impaired. The Debtor did not operate as a going-concern during the pendency of the Bankruptcy Case and focused solely on maximizing the value of its assets. The Plan will be funded by the proceeds of the sales of the assets and properties of OPEA. A full-text copy of the Second Amended Disclosure Statement dated December 20, 2024 is available at https://urlcurt.com/u?l=NkPPHa from PacerMonitor.com at no charge. Counsel to the Debtor: Samuel L. Yellen, Esq. Samuel L. Yellen, Attorney At Law, PLLC 1 Seneca St. 29th Fl., M-2 Buffalo, NY 14203 Tel: (716) 304-2820 Email: sam@yellenlegal.com About Orchard Park Equity Associates Orchard Park Equity Associates, LLC, owns the Sheffer Farms Townhomes in Orchard Park, N.Y. Orchard Park Equity Associates filed its voluntary petition for Chapter 11 protection (Bankr. W.D.N.Y. Case No. 24-10772) on July 17, 2024, listing as much as $1 million to $10 million in both assets and liabilities. Edward E. Lewis, managing member, signed the petition. Judge Carl L. Bucki oversees the case. Samuel L. Yellen, Attorney at Law, PLLC, serves as the Debtor's bankruptcy counsel. PAC BUILD: Small Business Debtor's Plan of Reorganization Confirmed ------------------------------------------------------------------- The Honorable Robert J. Faris of the United States Bankruptcy Court for the District of Hawaii confirmed the Small Business Debtor's Plan of Reorganization filed by Pac Build, LLC. The Debtor filed its Small Business Debtor's Plan of Reorganization on September 27, 2024. On November 25, 2024, the U.S. Trustee filed an objection to the Plan. No other objections to the Plan were filed. The Debtor has the burden of proving the elements of section 1129 of the Bankruptcy Code by a preponderance of evidence and has done so as set forth herein. The Plan provides that Administrative Claims will be paid in full, on the later of the Effective Date of the Plan or (if applicable) the date such Administrative Claims are allowed by the Bankruptcy Court. The Plan designates eight (8) Classes of Claims and one Class of Equity Interests. The Claims and Equity Interests placed in each Class are substantially similar to other Claims and Interests, as the case may be, in each such Class. Valid business, factual, and legal reasons exist for separately classifying the various classes of claims and Interests created under the Plan. The Plan specifies that Classes 2, 3, 4, 5, 6, and 9 are not impaired under the Plan, thereby satisfying section 1123(a)(2) of the Bankruptcy Code. Said Classes are deemed to have accepted the Plan because they are not impaired under the Plan. The Plan designates that Classes 1 (First Hawaiian Bank), 7 (general unsecured class), and 8 (convenience class claims) are impaired, and specifies the treatment of Claims in those Classes, thereby satisfying section 1123(a)(3) of the Bankruptcy Code. The Holder of the Allowed FHB Secured Claim (Class 1), the Holder of the Allowed Ally Secured Claim (Class 2); Holder of the Allowed Ford Secured Claim (Class 3), Holder of the Allowed Leaf Secured Claim (Class 4), Holder of the Allowed Synchrony Bank Secured Claim (Class 5), and Holders of Allowed Employee Priority Claims (Class 6) will receive at least as much as they would receive in a case under chapter 7 with respect to those Claims. The treatment of Classes 1 through 6 is fair and equitable and does not unfairly discriminate against said Classes. The Holders of the Allowed General Unsecured Claims (Class 7) and the Holders of the Allowed convenience class claims (Class 8) will receive more than what they would receive in a case under chapter 7 with respect to those Claims, because if the assets of the Debtor were liquidated outright, said Classes would not receive a distribution. The treatment of Classes 7 and 8 is fair and equitable and does not unfairly discriminate against said Classes. The Holders of Allowed Equity Interests in Class 9 will retain their Equity Interests under the Plan. The Plan provides for the same treatment of each Claim or Equity Interest in each respective Class, unless the Holder of a particular Claim or Equity Interest has agreed to a less favorable treatment of such Claim or Equity Interest, thereby satisfying section 1123(a)(4) of the Bankruptcy Code. Because the three impaired classes (Classes 1 (First Hawaiian Bank), 7 (general unsecured creditors), and 8 (convenience class)) voted to accept the Plan, the Debtor's Plan may be confirmed as a "consensual plan" within the meaning of Section 1191(a) provided all the requirements of Section 1129(a), other than 1129(a)(15), are met. The Plan satisfies the requirements for confirmation set forth in sections 1129, 1190 and 1191 of the Bankruptcy Code. The Debtor has proposed the Plan in good faith and not by any means forbidden by law, thereby satisfying section 1129(a)(3) of the Bankruptcy Code. The Plan was proposed with the legitimate and honest purpose of maximizing the value of the Debtor's Estate, to satisfy substantial obligations of the Debtor, and to effectuate a successful reorganization of the Debtor. In order to satisfy section 1129(a)(11) of the Bankruptcy Code, the Debtor need not prove that there is an absolute certainty that the conditions to confirmation will be met. On the contrary, the Debtor need only show that the Plan offers a reasonable assurance of success. The Plan's projections show that Reorganized Debtor will have adequate capital and net operating income to meet its ongoing obligations. Thus, the Plan has the requisite level of likelihood of success. In accordance with section 1123(b)(3)(A) of the Bankruptcy Code and Bankruptcy Rule 9019, and in consideration for the distributions and other benefits provided under the Plan, the provisions of the Plan constitute a good-faith compromise of all Claims that all Holders of Claims may have with respect to any Allowed Claim or any distribution to be made on account of such Allowed Claim. The compromise and settlement of such Claims embodied in the Plan, if any, are proper, fair, equitable, and reasonable and in the best interests of the Debtor, the Estate, and all Holders of Claims. A copy of the Court's decision is available at https://urlcurt.com/u?l=X4BZbc Attorneys for Debtor and Debtor-in-Possession: Chuck C. Choi, Esq. Allison A. Ito, Esq. CHOI & ITO, ATTORNEYS AT LAW 700 Bishop Street, Suite 1107 Honolulu, Hawaii 96813 Tel: (808) 533-1877 Fax: (808) 566-6900 E-mail: cchoi@hibklaw.com aito@hibklaw.com About Pac Build Pac Build, LLC is a construction company in Koloa, Hawaii, specializing in high-end custom homes, commercial establishments, and residential buildings. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Hawaii Case No. 24-00588) on July 1, 2024, with $500,000 to $1 million in assets and $1 million to $10 million in liabilities. Tyler Rodighiero, manager, signed the petition. Judge Robert J. Faris presides over the case. Chuck C. Choi, Esq. at Choi & Ito represents the Debtor as legal counsel. PARTY CITY: A&G Plans to Auction 695 Store Leases ------------------------------------------------- A&G Real Estate Partners, real estate advisor to Party City Holdco Inc., on Jan. 3 announced plans to auction 695 Party City store leases as the nearly 40-year-old celebrations retailer begins to wind down its operations. Going-out-of-business sales are now underway at those retail locations. The bid deadline and auction likely will be in early February. "This is a large and diverse store portfolio, with good real estate and a great many stores located in high-traffic shopping centers," said Emilio Amendola, Co-President of A&G and leader of the New York-based company's real estate sales division. "This auction represents an extraordinary opportunity for expanding operators in what marks the end of an era in the retail industry." "This offers operators the chance to open in turnkey spaces that are ready for immediate occupancy with favorable lease terms in both suburban and urban retail markets," added Andy Graiser, Co-President of A&G. With box sizes that range from approximately 7,000 to 46,000 square feet, the stores are a fit for a wide array of potential users. "You've got a number of strong candidates for this real estate," said Mike Matlat, A&G Senior Managing Director. "The list includes gyms and entertainment tenants, dollar stores, local specialty retailers, furniture stores, and medical office clinics." The leases are for freestanding stores as well as those located in power centers, strips, and city street locations; no fee-owned properties are available in the auction. Alaska (1) Alabama (10) Arkansas (1) Arizona (15) California (82) Colorado (13) Connecticut (12) Delaware (2) Florida (59) Georgia (27) Iowa (6) Illinois (37) Indiana (16) Kansas (3) Kentucky (7) Louisiana (7) Massachusetts (20) Maryland (20) Maine (2) Michigan (20) Minnesota (10) Missouri (12) Mississippi (1) North Carolina (21) North Dakota (4) Nebraska (3) New Hampshire (3) New Jersey (26) New Mexico (3) Nevada (5) New York (46) Ohio (23) Oklahoma (6) Oregon (2) Pennsylvania (25) Rhode Island (2) South Carolina (10) Tennessee (14) Texas (72) Virginia (19) Vermont (1) Washington (16) Wisconsin (10) West Virginia (1) The auction will take place at the Manhattan office of PCHI legal counsel Paul, Weiss, Rifkind, Wharton & Garrison LLP, located at 1285 Avenue of the Americas. To accomplish an orderly wind down in the most efficient manner and to maximize value for the benefit of the Company's stakeholders, PCHI and certain of its subsidiaries voluntarily filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas on December 21, 2024. The Company cited "an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors." PCHI is retaining more than 95% of its 12,000 employees for some time to assist with the wind down process. During the going out of business sales, shoppers at Party City stores will be able to take advantage of deals and deep discounts on merchandise while supplies last. For additional details, including bid procedures as well as remaining lease terms for individual locations, contact A&G Co-President Emilio Amendola, (631) 465-9507, emilio@agrep.com, A&G Senior Managing Director Mike Matlat, (631) 465-9508, mike@agrep.com, or A&G Senior Managing Director Doug Greenspan, (310) 770-7832, doug@agrep.com. The full store list is available here: https://www.agrep.com/index.php/partycity About Party City Holdco Party City Holdco Inc. (NYSE: PRTY) is the global leader in the celebrations' industry, with its offerings spanning more than 70 countries around the world. It is also the largest designer, manufacturer, distributor, and retailer of party goods in North America. Party City Holdco had 761 company-owned stores as of September 2022. It is headquartered in Woodcliff Lake, N.J. with additional locations throughout the Americas and Asia. Party City Holdco and its domestic subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90005). As of Sept. 30, 2022, Party City Holdco had total assets of $2,869,248,000 against total debt of $3,022,960,000. Judge David R. Jones oversees the cases. The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP, as legal counsel; Moelis & Company, LLC as investment banker; AlixPartners, LLP as financial advisor; A&G Realty Partners as real estate advisor; and Kroll as the claims agent. PricewaterhouseCoopers LLP (PwC) provides accounting and valuation advisory services, tax-related services, and internal audit Sarbanes-Oxley Act support services. Davis Polk & Wardwell, LLP, and Lazard serve as legal counsel and investment banker, respectively, to the ad hoc group of first lien holders. The U.S. Trustee for Region 6 appointed an official committee to represent unsecured creditors in the Chapter 11 cases. The committee is represented by Pachulski Stang Ziehl & Jones, LLP. PARTY CITY: Leases of 695 Stores to be Auctioned in February ------------------------------------------------------------ A&G Real Estate Partners, real estate advisor to Party City Holdco Inc., announced on Jan. 3, 2025, that it plans to auction 695 Party City store leases as the nearly 40-year-old celebrations retailer begins to wind down its operations. Going-out-of-business sales are now underway at those retail locations. The bid deadline and auction likely will be in early February. "This is a large and diverse store portfolio, with good real estate and a great many stores located in high-traffic shopping centers," said Emilio Amendola, Co-President of A&G and leader of the New York-based company's real estate sales division. "This auction represents an extraordinary opportunity for expanding operators in what marks the end of an era in the retail industry." "This offers operators the chance to open in turnkey spaces that are ready for immediate occupancy with favorable lease terms in both suburban and urban retail markets," added Andy Graiser, Co-President of A&G. With box sizes that range from approximately 7,000 to 46,000 square feet, the stores are a fit for a wide array of potential users. "You've got a number of strong candidates for this real estate," said Mike Matlat, A&G Senior Managing Director. "The list includes gyms and entertainment tenants, dollar stores, local specialty retailers, furniture stores, and medical office clinics." The leases are for freestanding stores as well as those located in power centers, strips, and city street locations; no fee-owned properties are available in the auction. - Alaska (1) - Alabama (10) - Arkansas (1) - Arizona (15) - California (82) - Colorado (13) - Connecticut (12) - Delaware (2) - Florida (59) - Georgia (27) - Iowa (6) - Illinois (37) - Indiana (16) - Kansas (3) - Kentucky (7) - Louisiana (7) - Massachusetts (20) - Maryland (20) - Maine (2) - Michigan (20) - Minnesota (10) - Missouri (12) - Mississippi (1) - North Carolina (21) - North Dakota (4) - Nebraska (3) - New Hampshire (3) - New Jersey (26) - New Mexico (3) - Nevada (5) - New York (46) - Ohio (23) - Oklahoma (6) - Oregon (2) - Pennsylvania (25) - Rhode Island (2) - South Carolina (10) - Tennessee (14) - Texas (72) - Virginia (19) - Vermont (1) - Washington (16) - Wisconsin (10) - West Virginia (1) The auction will take place at the Manhattan office of PCHI legal counsel Paul, Weiss, Rifkind, Wharton & Garrison LLP, located at 1285 Avenue of the Americas. To accomplish an orderly wind down in the most efficient manner and to maximize value for the benefit of the Company's stakeholders, PCHI and certain of its subsidiaries voluntarily filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas on December 21, 2024. The Company cited "an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors." PCHI is retaining more than 95% of its 12,000 employees for some time to assist with the wind down process. During the going out of business sales, shoppers at Party City stores will be able to take advantage of deals and deep discounts on merchandise while supplies last. For additional details, including bid procedures as well as remaining lease terms for individual locations, contact A&G Co-President Emilio Amendola, (631) 465-9507, emilio@agrep.com, A&G Senior Managing Director Mike Matlat, (631) 465-9508, mike@agrep.com, or A&G Senior Managing Director Doug Greenspan, (310) 770-7832, doug@agrep.com. About Party City Holdco Party City Holdco Inc. is a party goods retailer and the go-to shopping destination for every type of celebration, offering an extensive and innovative selection of products at exceptional value. The Company has approximately 700 company-owned and franchise store locations across North America and sells online to consumers at www.partycity.com. The Company also operates Amscan, a premier designer, manufacturer, and distributor of celebration products including decor, tableware, costumes, and accessories. The Company is headquartered in Woodcliff Lake, N.J., with additional locations in the Americas and Asia. Party City Holdco and its domestic subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code on December 21, 2024 (Bankr. S.D. Tex. Lead Case No. 24-90621). Hon. Alfredo R Perez oversees the cases. PARTY CITY: To Close Springfield Location as Part of Chapter 11 --------------------------------------------------------------- Claire Grant of Springfield State Journal-Register reports that Party City is preparing to shutter hundreds of its stores by the end of February 2025 as the national retailer winds down operations. Parent company Party City Holdco Inc. filed for Chapter 11 bankruptcy on December 21, 2024. Among the closures is the Springfield location at 3329 S. Veterans Parkway. The store manager anticipates the Springfield store will close by late February, though an exact date has not been confirmed. In the meantime, the store is holding a liquidation sale with discounts of up to 50% on all items. The location employs 15 staff members. In Illinois, 31 additional Party City stores, primarily in the Chicago area, are also set to close, according to Yahoo Finance. Party City, the largest party supply chain in the U.S. with 800 stores nationwide, is winding down entirely. CEO Barry Litwin informed corporate employees during a December 20 online meeting, as reported by CNN, that corporate operations are also ending. This is Party City's second Chapter 11 filing in recent years. The first, in January 2023, addressed $800 million in debt by reducing it by $1 billion and transferring equity shares to lenders. That restructuring also resulted in the closure of over 60 stores, primarily in Kansas, New York, Missouri, and Kentucky. About Party City Holdco Party City Holdco Inc. (NYSE: PRTY) is the global leader in the celebrations' industry, with its offerings spanning more than 70 countries around the world. It is also the largest designer, manufacturer, distributor, and retailer of party goods in North America. Party City Holdco had 761 company-owned stores as of September 2022. It is headquartered in Woodcliff Lake, N.J. with additional locations throughout the Americas and Asia. Party City Holdco and its domestic subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90005). As of Sept. 30, 2022, Party City Holdco had total assets of $2,869,248,000 against total debt of $3,022,960,000. Judge David R. Jones oversees the cases. The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP, as legal counsel; Moelis & Company, LLC as investment banker; AlixPartners, LLP as financial advisor; A&G Realty Partners as real estate advisor; and Kroll as the claims agent. PricewaterhouseCoopers LLP (PwC) provides accounting and valuation advisory services, tax-related services, and internal audit Sarbanes-Oxley Act support services. Davis Polk & Wardwell, LLP and Lazard serve as legal counsel and investment banker, respectively, to the ad hoc group of first lien holders. The U.S. Trustee for Region 6 appointed an official committee to represent unsecured creditors in the Chapter 11 cases. The committee is represented by Pachulski Stang Ziehl & Jones, LLP. PERIMETER FOODS: Royalty Payments to Fund Plan ---------------------------------------------- Perimeter Foods, LLC, filed with the U.S. Bankruptcy Court for the Western District of Virginia a Chapter 11 Plan of Liquidation dated December 20, 2024. The Debtor is a Virginia limited liability company, with 7 members. The Debtor was established in November 2022 to acquire certain assets of Robert Rothschild Foods Inc. ("RRF Inc."), including the brands, intellectual property, and inventories. The Debtor purchased the assets of RRF Inc. by assuming some of the trade debt of the company. The Debtor continued the operations as a condiment food producer and distributor. The Debtor's strategy was to stabilize the RRF Inc. brands at Costco and other national outlets, correct the history of operating losses, and sell or recapitalize the company to be in a position to repay the acquired trade debt. In May 2024, the Debtor entered into an Asset Purchase Agreement with Sunny Dell Specialty LLC, whereby Sunny Dell acquired, among other things, the Debtor's intellectual property. Consideration for the purchase was in the form of a royalty agreement (the "Royalty Agreement") under which Sunny Dell committed to paying the Debtor a percentage of the gross sales of products using the Rothschild brands and/or recipes for a period of 6 years with a maximum paid out royalty of $3.7 million (the "Royalty Payments"). The Royalty Agreement further provides for the Debtor's cooperation and assistance until May 2025 and allows the Debtor to monitor the on-going club sales as a mechanism for the Debtor to insure the accuracy of the Royalty Payments. This Plan under Chapter 11 of the Bankruptcy Code proposes to pay creditors of the Debtor from the stream of Royalty Payments to be received by the Debtor over the next six years, the life of the Royalty Agreement. Class 3 includes all unsecured creditors and claims. Each creditor holding an allowed Class 3 claim shall be paid on a pro rata basis in periodic payments from the net proceeds of the Royalty Payments that the Debtor may have after payment of the Unclassified Claims and Classes 1 and 2 pursuant to this Plan. Any Class 3 claim that was identified as disputed, unliquidated, or contingent in the Debtor's Schedules shall be deemed disallowed unless such Creditor holding a Claim identified as disputed, unliquidated, or contingent has timely filed a Proof of Claim. Class 3 is impaired by the Plan. Class 4 includes the claims of equity interest holders in the Debtor. The Class 4 interests will receive no distribution under the Plan unless and until the holders of the Unclassified Claims and creditors holding allowed claims in Classes 1-3 have been paid in full. Class 4 is impaired by the Plan. The Debtor will operate its business on a limited basis prior to and following confirmation of this Plan to liquidate its assets and collect the Royalty Payments and fund the distributions called for herein. All distributions under this Plan shall be made by the Debtor from the Royalty Payments that are received, whether this Plan is confirmed pursuant to Section 1191(a) or (b) of the Bankruptcy Code. Upon request, the Debtor shall provide the Subchapter V Trustee with a report of the distributions made to date by the Debtor. A full-text copy of the Liquidating Plan dated December 20, 2024 is available at https://urlcurt.com/u?l=jfF4OC from PacerMonitor.com at no charge. Counsel for the Debtor: Hannah W. Hutman, Esq. C. Andrew Bolt, Esq. Hoover Penrod, PLC 342 South Main Street Harrisonburg, VA 22801 Tel: (540) 433-2444 Fax: (540) 433-3916 Email: hhutman@hooverpenrod.com abolt@hooverpenrod.com About Perimeter Foods Perimeter Foods, LLC, doing business as Robert Rothschild Farm Foods, is a fruit and vegetable preserving and specialty food manufacturing business. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Va. Case No. 24-50529) on Sept. 23, 2024, with up to $50,000 in assets and up to $10 million in liabilities. David MacDonald, member and manager, signed the petition. Hannah W. Hutman, Esq., at Hoover Penrod, PLC, is the Debtor's legal counsel. PIER 1 IMPORTS: Court Affirms Denial of GDI's Rule 60 Motion ------------------------------------------------------------ In the case captioned as GDI ADVENTURA DEVELOPMENT, LLC, Appellant, v. PIER 1 IMPORTS, INC., Appellee, Civil Action No. 3:24-cv-225 (E.D. Va.), Judge M. Hannah Lauck of the United States District Court for the Eastern District of Virginia will affirm the March 11, 2024 Memorandum Opinion and Order of the United States Bankruptcy Court for the Eastern District of Virginia denying GDI's Motion for Relief from Order Granting Omnibus Objection. On February 17, 2020, the Debtors, including Pier 1, filed voluntary petitions under Chapter 11 of Title 11 of the Bankruptcy Code. The Bankruptcy Court entered an order authorizing and directing Epiq Corporate Restructuring, LLC to perform noticing services and to receive, maintain, record, and otherwise administer the proofs of claim in these bankruptcy cases. The Debtors were able to confirm a plan, which became effective on October 9, 2020. Post-confirmation, on September 4, 2020, the Debtors filed a Notice of Rejection of Certain Executory Contracts and/or Unexpired Leases, whereby the Debtors sought to reject the Lease. No objection was received in connection therewith and the effective date of the rejection of the Lease was September 25, 2020. On October 23, 2020, GDI, through its agent Savitar Realty Advisors, filed a timely proof of claim for $461,698.96 in general unsecured damages due to the rejection of the Lease. The claim was signed by Clifford Stein, President of Savitar, and specified that notices to GDI should be sent to Savitar's Miami Beach address. Between September 18, 2020, and January 14, 2021, Mr. Stein communicated with the Reorganized Debtors' counsel regarding the claim. In January 2021, Mr. Stein requested a status update on the claim, to which the Reorganized Debtors' plan administrator responded by stating that most of the claim was unsecured and likely would not receive a distribution. After this, communication between the parties ceased. On November 13, 2023, Mr. Stein of GDI received an email from an unrelated third party regarding the potential purchase of the Claim. In response, Mr. Stein contacted counsel for the Reorganized Debtors on November 14, 2023, for an update on any proposed distribution to general unsecured creditors, thirty-four months after the last communication. The Reorganized Debtors informed him that an interim distribution of 8-9% might be made to valid general unsecured claims, but since GDI's claim was reduced to zero, no distribution would be made to GDI. Starting December 14, 2023, the Reorganized Debtors began making interim distributions to holders of allowed general unsecured claims. On January 31,2024, GDI filed the Rule 60 Motion. Until the filing of the Rule 60 Motion, "[n]either Savitar, GDI, nor any party on their behalf filed a notice of appearance in connection with the above-referenced bankruptcy proceeding." At no point prior to the filing of the Motion did Savitar, GDI, or any party on their behalf subscribe for free electronic docket alerts provided by Epiq. On February 21, 2024, the Bankruptcy Court held a hearing on GDI's Rule 60 Motion. On March 11,2024, the Bankruptcy Court issued the Memorandum Opinion and Order denying GDI's Rule 60 Motion. On March 25, 2024, GDI appealed the Bankruptcy Court's denial of its Rule 60 Motion to this Court, initiating this case. GDI seeks to appeal three issues: (1) "Whether the Bankruptcy Court erred in finding that GDI's actions did not constitute neglect" when finding that their lack of continued participation in the case was a deliberate business decision; (2) "Whether", even presuming neglect, "the Bankruptcy Court erred in finding that GDI's neglect was not excusable"; and, (3) "Whether the Bankruptcy Court erred in finding that the Reorganized Debtors had a valid objection to GDI's claim." The District Court need not consider GDI's third issue on appeal—whether the Bankruptcy Court erred in finding that Pier 1 had a valid objection to GDI's claim. As the Bankruptcy Court acknowledged, because "GDI failed to meet the standard of Federal Rule of Civil Procedure 60, the Bankruptcy Court need not address the merits of the Claim Objection." Therefore, the District Court declines to address GDI's third issue for appeal. Because the Bankruptcy Court did not abuse its discretion or commit error when finding that GDI did not demonstrate excusable neglect, the District Court will affirm the decision of the Bankruptcy Court in its Memorandum Opinion and Order Denying GDI's Rule 60 Motion. The District Court finds no error or abuse of discretion in the Bankruptcy Court's conclusion that GDI's intentional choice to sit back and ignore the bankruptcy does not constitute neglect. The Bankruptcy Court noted that GDI was actively engaged with Pier I and in frequent communications with Pier I about the Lease and the Claim, until GDI learned that its Claim may not be paid." At that point, GDI ceased communications with Pier I for almost three years." The Bankruptcy Court observed that it was not until GDI learned through a third party that a distribution would be made to unsecured creditors that it recommenced such communication, and that the record shows that GDI had made a conscious business decision that its continued participation no longer made economic sense. Indeed, GDI itself concedes GDI's ceased affirmative efforts to contact the Debtor constituted a decision, the District Court finds. The District Court upheld the Bankruptcy Court's decision, finding no error or abuse of discretion in its evaluation of the factors related to excusable neglect. The Bankruptcy Court considered the danger of prejudice to the debtor, the length of delay, the reason for the delay, and whether the movant acted in good faith. It determined that allowing GDI to file a late response to Pier 1's Claim Objection would undermine the finality of deadlines and potentially open the door for other creditors to assert previously time-barred defenses. The District Court agreed that the Bankruptcy Court's conclusion about the potential prejudice to Pier 1 was based on facts and not hypothetical harm. A copy of the Court's decision is available at https://urlcurt.com/u?l=ADISnr About Pier 1 Imports Founded with a single store in 1962, Pier 1 Imports, Inc. -- http://www.pier1.com/-- was an omni-channel retailer of unique home decor and accessories. Its products are available through approximately 930 Pier 1 stores in the U.S. and online at pier1.com. Pier 1 Imports and seven affiliates sought Chapter 11 protection (Bankr. E.D. Va. Lead Case No. 20-30805) on Feb. 17, 2020, to pursue a sale of the assets. Pier 1 Imports disclosed $426.6 million in assets and $258.3 million in debt as of Jan. 2, 2020. Judge Kevin R. Huennekens oversees the cases. Kirkland & Ellis LLP and Osler, Hoskin & Harcourt LLP served as legal advisors to Pier 1 Imports and its affiliated debtors in the U.S. and Canada, respectively. The Debtors tapped AlixPartners LLP as restructuring advisor; Guggenheim Securities, LLC as investment banker; and Epiq Bankruptcy Solutions as claims agent. A&G Realty Partners assisted Pier 1 Imports with its previously announced store closures and lease modifications. In September 2020, Pier 1 Imports won bankruptcy court approval of its liquidation plan after the pandemic dashed its hopes of reorganizing. PINNACLE FOODS: Loses Bid to Assume PLK's Franchise Agreements -------------------------------------------------------------- Judge Rene Lastreto II of the United States Bankruptcy Court for the Eastern District of California refused to reconsider an order that denied Pinnacle Foods of California, LLC's motion to assume the franchise agreements of Popeyes Louisiana Kitchens. Pinnacle Foods of California, LLC is a franchisee of Popeyes Louisiana Kitchens. Pinnacle operates six Popeyes fast food restaurants -- five in Fresno, California and one in Turlock, California. Separate franchise agreements between Pinnacle and PLK for the various restaurants were entered into. Beset by a number of problems faced by the quick service restaurant industry in California, Pinnacle filed a voluntary Chapter 11 proceeding in April 2024 and elected to proceed under Subchapter V. Pinnacle has proposed a plan, but it has not been pursued. A significant issue about the relationship between Pinnacle and PLK needs resolution. The issue: Whether under 11 U.S.C. Sec. 365 of the Bankruptcy Code, Pinnacle can assume PLK's franchise agreements without PLK's consent. In order to resolve the issue, in September 2024, Pinnacle filed a motion to assume the franchise agreements. Pinnacle proposed to assume PLK's franchise agreements and provide for a prompt cure of any pre-petition defaults. Pinnacle claimed that its obligation to provide adequate assurance of future performance was based on its ability to reorganize. PLK opposed. From the beginning of the case, PLK has maintained that it would not consent to Pinnacle assuming the franchise agreements. PLK relied on Sec. 365(c)(1) which, as interpreted by the Ninth Circuit in Perlman v. Catapult Entertainment, Inc. (In Re Catapult Entertainment), excuses PLK from accepting performance from or rendering performance to a hypothetical third party. PLK goes on to contend that Pinnacle cannot assign franchise agreements without PLK's consent due to provisions of the Lanham Act (15 U.S.C. Secs. 1051 et seq.) and the California Franchise Relations Act (Cal. Bus. & Prof. Code Secs. 20000 et seq.), and so Pinnacle is also barred from assuming the franchise agreements. This is because the Ninth Circuit, along with the majority of circuit courts that have taken up the issue, apply the "hypothetical test" to determine if a contract can be assumed or assigned under Sec. 365(c)(1). PLK also argued that Pinnacle has committed uncurable non-monetary defaults under the franchise agreements. Pinnacle disputed that there is any non-monetary default at all and contends that it does not need to cure all monetary defaults The Court held a hearing on the motion on October 8, 2024. Two days later, it issued a 20-page memorandum on the motion and an order denying the Debtor's motion to assume the franchise agreements. The Court ultimately ruled that the franchise agreements could not be assumed by Pinnacle absent PLK's consent. In the motion to reconsider, Pinnacle reargues two primary contentions the Court dealt with in the original decision. First, Pinnacle argues the trademark protections of the Lanham Act do not apply to franchises that are to be assumed and assigned in bankruptcy in California since the exclusive "applicable law" under Sec. 365(c)(1) is the CFRA. Second, Pinnacle urges that, though Catapult is binding authority on this Court, application of CFRA in this case requires the Court to determine the reasonableness of PLK's decision not to consent to a transfer in this case. The Court discerns no clear error of law or highly unusual circumstance justifying reconsideration of its ruling denying Pinnacle's motion to assume franchise agreements under Civ. Rule 59(e)(Rule 9023). Nor, upon reconsideration, is there a mistake of law under Civ. Rule 60(b)(1)(Rule 9024). Thus, Pinnacle's motion for reconsideration is denied. A copy of the Court's decision is available at https://urlcurt.com/u?l=veT5lu Attorneys for Pinnacle Foods of California LLC, Movant/Debtor: Michael Jay Berger, Esq. LAW OFFICE OF MICHAEL J. BERGER 9454 Wilshire Blvd 6th Fl Beverly Hills, CA 90212-2929 E-mail: michael.berger@bankruptcypower.com - and - Craig R. Tractenberg, Esq. FOX ROTHSCHILD LLP 2000 Market St. 20 Floor Philadelphia, PA 19103 E-mail: ctractenberg@foxrothschild.com Attorney for Popeyes Louisiana Kitchen Inc., franchisor: Glenn Moses, Esq. VENABLE LLP 801 Brickell Avenue, Suite 1500 Miami FL 33131 E-mail: gdmoses@Venable.com About Pinnacle Foods of California Pinnacle Foods of California, LLC owns two commercial properties in Fresno, Calif. One property is valued at $780,000, while the other is valued at $770,000. Pinnacle Foods sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-11015) on April 22, 2024, with $2,077,748 in assets and $4,509,986 in liabilities. Walter Dahl, Esq., a partner at Dahl Law, serves as Subchapter V trustee. Judge Rene Lastreto II presides over the case. Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger represents the Debtor as bankruptcy counsel. PREMIER CHILDCARE: Commences Subchapter V Bankruptcy Proceeding --------------------------------------------------------------- On January 3, 2025, Premier Childcare LLC Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Illinois. According to court filing, the Debtor reports between $100,000 and $500,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Premier Childcare LLC Premier Childcare LLC operates a childcare center in Gallatin, Tennessee, offering early childhood education services with a focus on organic and eco-friendly practices. Premier Childcare LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-00037) on January 3, 2025 In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Jacqueline P. Cox handles the case. Ben L Schneider of Schneider & Stone represents the Debtor as counsel. PREMIER HOSPITALITY: Unsecureds Will Get 5% of Claims in Plan ------------------------------------------------------------- Premier Hospitality International, Inc., filed with the U.S. Bankruptcy Court for the Southern District of Florida a Chapter 11 Plan of Reorganization dated December 21, 2024. The Debtor is a custom furniture business that specializes in fulfilling custom order for furniture and cabinetry, primarily for hotels. It coordinates with manufacturers in China and Mexico to produce custom designed furniture. The Debtor's financial hardship began during the COVID-19 pandemic when the economic shutdown led to a substantial drop in new orders. To cover ongoing expenses and fulfil existing order, the Debtor secured Merchant Cash Advance ("MCA") loans. These loans required automatic weekly ACH withdrawals from the Debtor's bank account which became unsustainable due to the loans' excessively high interest rates. Creditors had until December 2, 2024, to file claims; however, the Debtors cheduled claims most of which the Debtor believes are non objectionable. The Debtor estimates that the total amount of allowed general unsecured claims of $106,176.89 and $285,354.69 in reclassified claims for a total of $391,531.58 in general unsecured claims. By this Plan, the Debtor will be restructuring these obligations, such that the Debtor can remain viable as a going concern. The Debtor's financial projections show that the Debtor will have projected disposable income (after payment of all amounts under this Plan, as well as all operating expenses) of $20,000.00. The final Plan payment is expected to be paid in the fourth quarter of 2027. Class 6 consists of all allowed general unsecured creditors and undersecured claims. The Class 6 General Unsecured Creditors and Claims shall share pro rata in total distribution in the amount of $20,000.00. Unsecured creditors will be receiving a distribution of approximately 5.00% of their allowed claim(s), which is an amount in excess of what claimants would receive in a hypothetical Chapter 7 proceeding, in which case such claimants would receive 0.00%. The allowed unsecured claims total $391,531.58. This Class is impaired. Class 6 consists of Equity Security Holder Joseph Cabrera. Equity Security Holders shall retain their prepetition interests. The means necessary for the implementation of this Plan include the Debtor's cash flow from operations for a period of three years and contributions from the Principals of the Debtor when necessary. The Debtor's financial projections show that the Debtor will have sufficient cash over the life of the Plan to make the required Plan payments and operate its business. The estimated cash on hand as of the First Payment Date of this Plan is $7,500.00. The Debtor's financial projections show that the Debtor will have projected disposable income for a period of three years (after payment of all amounts under this Plan, as well as operating expenses) of $20,000.00. To the extent that the Debtor performs consistent with such financial projections, then such disposable income will be utilized by the Debtor in the form of cash reserves, in order to ensure that the Debtor will have sufficient cash over the life of the Plan to not only make the required Plan payments but operate its business without any concern of illiquidity. A full-text copy of the Plan of Reorganization dated December 21, 2024 is available at https://urlcurt.com/u?l=IIXiiX from PacerMonitor.com at no charge. Counsel to the Debtor: Rachamin Cohen, Esq. COHEN LEGAL SERVICES, PA 12 SE 7th Street, Suite 805 Fort Lauderdale, FL 33301 Tel: (305) 570-2326 E-mail: Rocky@CohenLegalServicesFL.com About Premier Hospitality International Premier Hospitality International Inc. is a custom furniture business that specializes in fulfilling custom order for furniture and cabinetry, primarily for hotels. The Debtor filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-19763) on Sept. 22, 2024, with $100,001 to $500,000 in both assets and liabilities. Judge Corali Lopez-Castro presides over the case. Rachamin Cohen, Esq., at Cohen Legal Services, P.A., is the Debtor's legal counsel. PRIME CAPITAL: Creditors to Get Proceeds From Liquidation --------------------------------------------------------- Prime Capital Ventures, LLC, filed with the U.S. Bankruptcy Court for the Northern District of New York a First Amended Disclosure Statement for First Amended Plan of Liquidation dated December 23, 2024. On or around July 26, 2006, Prime Commercial Lending, LLC was formed as a New York limited liability company. On December 14, 2021, Kris Daniel Roglieri formed the Debtor as a Delaware limited liability company. The concept was apparently that the Debtor would be Prime Commercial's division as "a fund specifically designed to provide capital for large development, commercial development and commercial real estate transactions from $50 million to more than $1 billion." The Debtor had all the classic hallmarks of a Ponzi scheme. First, the Debtor received deposits from investors in the form of ICA Deposits. The intention of making such deposits was to secure future funding which did not materialize in an overwhelming majority of the cases. Second, the Debtor conducted little or no legitimate business operations as represented to those who made the ICA Deposits. The Debtor appears to have taken in at least $100 million in ICA Deposits from over 20 potential third-party borrowers. At the same time, it only closed on 5 loans. The value of its loan portfolio is still being assessed. Third, the business operation of the Debtor produced little or no profits or earnings. All profits were to be interest earned on loans made prefunded by the borrower's corresponding ICA Deposit. However, the Debtor never had a sufficient loan portfolio to produce any profits. Moreover, the Debtor never booked any profits and never filed tax returns declaring any profits. On February 2, 2024, the Federal Bureau of Investigation (the "FBI") searched Roglieri's residence and seized several cars, watches, jewelry, and other property. On February 15, 2024, Roglieri filed a voluntary petition for relief under subchapter V of Chapter 11 of the Bankruptcy Code with the Bankruptcy Court under Case No. 24-10157 (the "Roglieri Bankruptcy Case"). See Roglieri Bankruptcy Case, Docket No. 1. Shortly after Roglieri filed for bankruptcy, the FBI executed a second federal search warrant on Roglieri's residence and seized additional cars. The Plan is a plan of liquidation. In general, a chapter 11 plan of liquidation (i) divides claims into separate classes, (ii) specifies the property that each class is to receive under the plan, and (iii) contains other provisions necessary to implement the Plan. Under the Bankruptcy Code, "claims" are classified rather than "creditors" because such entities may hold claims in more than one class. Class 2 consists of General Unsecured Claims in the Chapter 11 Case that are asserted, filed or scheduled against the Debtor. Each Holder of an Allowed General Unsecured Claim shall receive their pro rata share from the remaining portion of the Post Confirmation Estate Fund, after satisfaction in full of senior Claims. The pro rata share of each Holder's Allowed Class 2 Claim shall be determined by a formula, the numerator of which is then unsatisfied amount of such Holders' Class 2 Allowed Claim and the denominator of which is the aggregate unsatisfied amount of the remaining Allowed Class 2 Claims. Distributions to holders of Allowed Class 2 Claims shall be made by the Plan Administrator from the Post-Confirmation Estate Fund until all Allowed Class 2 Claims are paid in full. Class 2 is Impaired and Holders of General Unsecured Claims are therefore entitled to vote on the Plan. Creditor Assignors, Holders of Allowed Class 2 Claims that choose to execute a Creditor Assignment and assign their Creditor Related Causes of Action to the Plan Administrator for prosecution, shall receive, after payment and satisfaction of any outstanding Post Confirmation Expenses, such Creditor Assignors' share of the Creditor Related Causes of Action Fund. Unless otherwise fixed by the Bankruptcy Court, each Creditor Assignor's share of the Creditor Related Causes of Action Fund shall be presumed to be pro rata based upon the amount of such Creditor Assignor's outstanding Allowed Class 2 Claim. However, the Plan Administrator retains the right to seek an adjustment of each Claim Assignor's distributive share of any Creditor Related Causes of Action Fund if warranted. In the event that a Creditor Assignor only assigns some but not all Creditor Related Causes of Action to the Plan Administrator, such Creditor Assignor may not take part in the distribution of proceeds emanating from any Creditor Related Cause of Action that particular Creditor Assignor did not assign. Pursuant to the Government Stipulation, holders of Allowed Class 2 Claims will be permitted to share pro rata in the Victim Fund comprised of the net proceeds of the Subject Vehicles and/or other seized property voluntarily turned over to the Debtor by the Government unless the Government determines that any holders of Allowed Class 2 Claims are not Victims of the Debtor's fraud, in which case such holders of Allowed Class 2 Claims will be excluded from the sharing in distributions from the Victim Fund, but will retain the right and ability to share in all other distributions to which holders of Allowed Class 2 Claims are entitled under the Plan. As of the date of the Disclosure Statement, approximately twenty parties have filed or otherwise hold scheduled Class 2 Claims in the aggregate amount of approximately $200 million. Class 3 consists of the Equity Interests in the Debtor. Class 3 Equity Interests are Impaired as they will receive no Distribution under the Plan. Class 3 Equity Interests are deemed to reject the Plan and, as such, are not entitled to vote to accept or reject the Plan. On the Effective Date, all Class 3 Equity Interests will be deemed canceled, null and void and of no force and effect. The Plan shall be funded by a combination of the proceeds of sale of the Debtor's Assets, and proceeds from liquidation of remaining Assets. The Plan Administrator shall utilize the Post-Confirmation Estate Fund and in certain cases, the Creditor Related Causes of Action Fund, for purposes of making distributions to holders of Allowed Claims in Classes 1 and 2 after reserving for Disputed Claims. A full-text copy of the First Amended Disclosure Statement dated December 23, 2024 is available at https://urlcurt.com/u?l=uU8LVP from PacerMonitor.com at no charge. Counsel to the Debtors: Fred Stevens, Esq. Lauren C. Kiss, Esq. KLESTADT WINTERS JURELLER SOUTHARD & STEVENS, LLP 200 West 41st Street, 17th Floor New York, NY 10036 Tel: (212) 972-3000 Fax: (212) 972-2245 Email: fstevens@klestadt.com lkiss@klestadt.com About Prime Capital Ventures Prime Capital owns a residential property located at 600 Linkhorn Drive, Virginia Beach, VA 23451 valued at $4.02 million. Prime Capital Ventures, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-11029) on Sept. 16, 2024, listing $6,452,230 in assets and $244,529,327 in liabilities. The petition was signed by Christian H. Dribusch as manager. Christian H. Dribusch, Esq., at Dribusch Law Firm, is the Debtor's counsel. PRIME ELECTRICAL: Gets OK to Use Cash Collateral Until Jan. 16 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, issued a preliminary order authorizing Prime Electrical Services, LLC to use cash collateral until Jan. 16. The order approved the use of cash collateral to pay amounts expressly authorized by the court, including payments of the U.S. trustee's quarterly fees; expenses set forth in the company's budget, plus an amount not to exceed 10% for each line item; and additional amounts approved in writing by the U.S. Small Business Administration. The budget projects monthly operational expenses of $10,733 for January and February. Secured creditors were granted a post-petition lien on cash collateral to the same extent and with the same validity and priority as their pre-bankruptcy liens. The next hearing is scheduled for Jan. 16. About Prime Electrical Services Prime Electrical Services, LLC manufactures relays and industrial controls. It offers engineering, procurement, fabrication, and field construction services for the drilling, industrial, heat trace, production, and petrochemical industries. The company serves customers in the United States. Prime Electrical Services sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06663) on December 8, 2024, with total assets of $256,996 and total liabilities of $5,419,312. Camell D. Williams, manager of Prime Electrical Services, signed the petition. Judge Tiffany P. Geyer handles the case. The Debtor is represented by: Jeffrey S. Ainsworth, Esq. BransonLaw, PLLC 1501 E. Concord Street Orlando, FL 32803 Tel: 407-894-6834 Email: jeff@bransonlaw.com PUERTO RICO: PREPA Bondholders Defend Rights Amid Bankruptcy ------------------------------------------------------------ Bondholders of the Puerto Rico Electric Power Authority, including GoldenTree Asset Management, LP, Assured Guaranty Inc., and National Public Finance Guarantee Corporation, on January 03, 2025, issued the following statement: "On December 31, the U.S. Court of Appeals for the First Circuit denied an unprecedented additional round of motions for rehearing filed by the Financial Oversight and Management Board and the Official Committee representing PREPA's junior unsecured creditors seeking to wrongly strip fundamental bondholder rights. This is the third time in the last six months that the bondholders have won, and the Board has lost, in the Court of Appeals, which has now repeatedly confirmed that PREPA's over $8.2 billion face amount of revenue bonds (which, with interest accrued prior to and during the now-seven-year span of the case, could result in a claim of over $11 billion) are properly secured by a perfected, enforceable lien on PREPA's past, present and future net revenues. Tone deaf to the Court's repeated rejection of its arguments, the Board announced its intention to resume its already-failed strategy to impose a nonconsensual plan of adjustment, rather than working with its secured and properly perfected bondholders on a consensual exit from bankruptcy that recognizes the bondholders' legal rights and funds PREPA's immediate financing needs. After reneging on three prior settlements, the Board's strategy ensures that PREPA will remain in bankruptcy for the foreseeable future and that measures to improve the reliability of PREPA's electric system will be delayed indefinitely against the best interests of Puerto Rico. As demonstrated by the end-of-year island-wide power outage, the people of Puerto Rico will continue to suffer while the Board's advisors add to all-time record high fees for a municipal restructuring, currently in excess of $1.5 billion. The bondholders believe they are legally entitled to post-petition interest on their claim, which would increase it to over $11 billion, that they have billions of administrative expense claims arising from PREPA's consumption of their collateral during the case, that their rights are senior to the underfunded claims of PREPA's pension, and that the Commonwealth has liability for any bondholder losses. The bondholders intend to vigorously litigate these and other issues absent a global settlement. In that regard, the mediation team appointed in PREPA's bankruptcy case has publicly expressed its skepticism regarding the ability to forge a settlement absent further litigation, which is now underscored by the Board's commitment to nonconsensual resolution. The bondholders remain willing to promptly resolve PREPA's bankruptcy case using rates that the Board has said would be fair and affordable. In addition to agreeing to take back 50-year replacement bonds that would have no fixed principal payments and interest that could be accrued rather than paid if needed, the bondholders' proposal would also provide $2.5 billion of new funding to pay for PREPA's bankruptcy exit and to begin paying for urgently needed improvements to PREPA's electric system. Thus far, all of Puerto Rico's bankruptcies have been resolved consensually, in keeping with PROMESA's overarching aim of restoring its market access. The Board's current plan to vitiate bondholder rights at PREPA will be long and fruitless. The secured and properly perfected bondholders are entitled to have their rights respected and the people of Puerto Rico are entitled to a reliable electric power system. The Board's costly and reckless behavior must end." About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies -- Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) -- commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. RAA RESTAURANT: Sec. 341(a) Meeting of Creditors on February 3 -------------------------------------------------------------- On January 2, 2025, RAA Restaurant Group Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Georgia. According to court filing, the Debtor reports between $500,000 and $1 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 February 3, 2025 at 01:00 PM via Telephone conference. To attend, Dial 888-902-9750 and enter participation code 9635734. About RAA Restaurant Group Inc. RAA Restaurant Group Inc. is based in Atlanta, Georgia and operates restaurant facilities with locations in Marietta and Atlanta. RAA Restaurant Group Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50031) on January 2, 2025 In its petition, the Debtor reports estimated assets and liabilities between $500,000 and $1 million. Leonard R. Medley, III of Medley & Associates, LLC represents the Debtor as counsel. RAMIN POURTEYMOUR: FFB's Attorney Protected by Anti-Slapp Statute ----------------------------------------------------------------- In the case captioned as RAMIN POURTEYMOUR, Individually and as Trustee, etc., Plaintiff and Appellant, v. FIRST FOUNDATION BANK et al., Defendants and Respondents, D082596 (Cal. Ct. App.), Judges David M. Rubin, Richard D. Huffman and Julia C. Kelety of the California Court of Appeal, Fourth Appellate District, Division One affirmed the order of the Superior Court of San Diego County that struck all causes of action against Scott Albrecht, First Foundation Bank's lawyer, under the anti-SLAPP statute. In 2014, Ramin Pourteymour obtained a $4.5 million loan and $3 million line of credit from FFB. Both were secured by his residence on Black Gold Road in La Jolla, with the $4.5 million loan having first priority. FFB also loaned Pourteymour $2.653 million secured by a La Jolla residence on Box Canyon Road, and $1.6 million secured by a commercial building in Pennsylvania In March of 2020, as COVID-19 caused a widespread economic slowdown in the US, Pourteymour's income declined significantly because his tenants stopped paying rent. Pourteymour contacted FFB to obtain financial hardship relief. He received conflicting responses from several FFB representatives about whether FFB would extend assistance. On March 17, 2020, Pourteymour stopped making payments on the Black Gold and Box Canyon loans. In July 2020, Pourteymour communicated through his bankruptcy lawyer, David Speckman, with FFB's lawyer, Albrecht. The first communication was an email from Speckman dated July 3, 2020. It informed Albrecht that Pourteymour was "preparing a Chapter 11 bankruptcy," but welcomed first an opportunity to discuss Pourteymour's secured loans. On July 6, 2020, Speckman and Albrecht discussed potential settlement, with Albrecht informing Speckman that FFB was preparing to record a notice of default on Black Gold. On July 9 Speckman sent a follow-up email to Albrecht." In that email, Speckman proposed modifying the terms of the two Black Gold loans and the Box Canyon loan in exchange for Pourteymour bringing current the senior Black Gold loan and the Box Canyon loan. Speckman asked that FFB refrain from recording the notice of default for 30 days so they could continue negotiating. Speckman asserted the notice of default would likely cause Pourteymour to proceed with bankruptcy and stay the foreclosure. Speckman also attached Pourteymour's draft bankruptcy schedules. Speckman and Albrecht were unable to reach an agreement, and on July 10, 2020, FFB recorded notices of default regarding the junior Black Gold loan and the Box Canyon loan. FFB then recorded a notice of sale on October 15, 2020, setting the foreclosure on the Black Gold junior lien for November 9, 2020. Pourteymour filed for Chapter 11 bankruptcy on November 6, 2020, three days prior to the scheduled foreclosure sale of his properties. Pourteymour wished primarily to reorganize the debts secured by Black Gold and Box Canyon. Pourteymour alleged a portion of the first lien and the entire second lien on Black Gold were unsecured, referring to the second lien as disputed. He also alleged the Box Canyon lien was only partially secured. FFB filed four proofs of claim in the bankruptcy case, one for each of its loans to Pourteymour. It also filed a competing Chapter 11 plan that included liquidation of Black Gold. The trustee's sale ultimately went forward on September 22, 2021, at which FFB obtained title to Black Gold. Pourteymour sued his lender FFB and Albrecht for wrongful foreclosure. In the operative complaint filed February 17, 2023, Pourteymour added Albrecht as a defendant and asserted five causes of action against him: violation of Civil Code section 2924c; violation of the California Homeowner Bill of Rights (Civ. Code, Sec. 2923.4 et seq.; HBOR); breach of the covenant of good faith and fair dealing; negligence per se; and unlawful business practices. The Civil Code section 2924c cause of action alleged Albrecht violated Pourteymour's rights by not providing Back Gold reinstatement figures when requested. It also alleged Albrecht ensured Pourteymour would not be able to reinstate the junior Black Gold loan after the bankruptcy by instructing the trustee to repeatedly postpone the foreclosure sale in increments of less than five business days. The HBOR cause of action alleged that Albrecht failed to ensure Pourteymour was considered for foreclosure prevention alternatives. As for the remaining causes of action against Albrecht, Pourteymour based them on the same conduct as the first two causes of action. On June 30, 2023, the trial court granted Albrecht's anti-SLAPP motion to strike all causes of action against him. The court found Albrecht's actions protected by the anti-SLAPP statute because they related to Pourteymour's bankruptcy and the instant case, including settlement communications in advance of the bankruptcy. For the same reasons, the court determined Pourteymour did not show a likelihood of success on his claims because Albrecht's conduct fell within the litigation privilege under Civil Code section 47, subdivision (b). Pourteymour's timely appeal followed. Pourteymour argues the anti-SLAPP statute does not apply because the causes of actions against Albrecht arise from a nonjudicial foreclosure, not Pourteymour's pending bankruptcy or the current action. Pourteymour similarly asserts the trial court in its anti-SLAPP analysis misapplied the litigation privilege in finding Pourteymour unable to show probable success on his claims. The Appellate Court disagrees and affirms the order. The Appellate Court finds the litigation privilege covers Albrecht's challenged acts, precluding Pourteymour from showing probable success on the merits. The trial court properly granted the anti-SLAPP motion. The order is affirmed. Albrecht is awarded costs on appeal. A copy of the Court's decision is available at https://urlcurt.com/u?l=YD6eL8 Attorneys for for Plaintiff and Appellant: Benjamin Galdston, Esq. OMNUM LAW 4350 Executive Drive, Suite 350 San Diego, CA 92121 Tel: (858) 539-9767 E-mail: bgaldston@omnumlaw.com Attorneys for Defendant and Respondent Scott Albrecht: Stephen M. Caine, Esq. Frances M. O'Meara, Esq. Lauren G. Kane, Esq. WOOD SMITH HENNING & BERMAN Tel: (310) 481-7600 E-mail: scaine@wshblaw.com fomeara@wshblaw.com lkane@wshblaw.com Attorneys for Defendant and Respondent First Foundation Bank: Hal D. Goldflam, Esq. Thomas M. Robins III, Esq. FRANDZEL ROBINS BLOOM & CSATO 1000 Wilshire Boulevard, 19th Floor Los Angeles, CA 90017-2427 Tel: (323) 852-100 E-mail: hgoldflam@frandzel.com trobins@frandzel.com Ramin Pourteymour filed for Chapter 11 bankruptcy protection (Bankr. S.D. Cal. Case No. 20-05522) on November 6, 2020, listing under $1 million in both assets and liabilities. The Debtor is represented by David Speckman, Esq. RAVI GI ASSOCIATES: Case Summary & 19 Unsecured Creditors --------------------------------------------------------- Debtor: Ravi GI Associates PA LLP d/b/a Ravi GI Associates PA 2490 Mosside Blvd., 2nd Fl. Monroeville, PA 15146 Business Description: The Debtor is a gastroenterology specialist. Chapter 11 Petition Date: January 3, 2025 Court: United States Bankruptcy Court Western District of Pennsylvania Case No.: 25-20012 Debtor's Counsel: Ronald R. Calaiaro, Esq. CALAIARO VALENCIK 938 Penn Avenue, 5th Fl. Suite 501 Pittsburgh, PA 15222 Tel: 412-232-0930 Fax: 412-232-3858 E-mail: dcalaiaro@c-vlaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Ravi Kondaveeti as president. A full-text copy of the petition containing, among other items, a list of the Debtor's 19 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/T26XIFY/Ravi_GI_Associates_PA_LLP__pawbke-25-20012__0001.0.pdf?mcid=tGE4TAMA RAVI GI: Seeks Bankruptcy Protection in Pennsylvania ---------------------------------------------------- On January 3, 2025, Ravi GI Associates PA LLP filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Pennsylvania. 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 Ravi GI Associates PA LLP Ravi GI Associates PA LLP is operating as a healthcare provider in Monroeville, Pennsylvania. Ravi GI Associates PA LLP sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20012) on January 3, 2025 In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Donald R. Calaiaro of Calaiaro Valencik represents the Debtor as counsel. RED RIVER: Committee Hires Mckool Smith as Special Counsel ---------------------------------------------------------- The official committee of Talc Claimants of Red River Talc LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Mckool Smith as special litigation counsel. The firm's services include: a. advising, and representing the Committee in its meetings, consultations and negotiations with the Debtor and other parties in interest regarding the administration of this Case; b. assisting, advising, and representing the Committee in understanding its rights and obligations, and its duties to its constituents under the Bankruptcy Code and the Bankruptcy Rules; c. assisting and advising the Committee regarding the identification and prosecution of estate claims, including in connection with any issues regarding the filing of the Case and the propriety of the filing; d. assisting and advising the Committee in its review and analysis of, and negotiations with the Debtor and non-Debtor affiliates related to current and future talc claims; e. reviewing and analyzing all applications, motions, complaints, orders, and other pleadings filed with the Court by the Debtor or third parties, and advising the Committee as to their propriety and, after consultation with the Committee, taking any appropriate action; f. representing the Committee at hearings held before the Court and communicating with the Committee regarding the issues raised, and the decisions of the Court; g. representing the Committee in connection with any litigation, disputes or other matters that may arise in connection with this Case or any related proceedings, including estate causes of action and avoidance actions; h. assisting, advising, and representing the Committee in and/or issues concerning the Second Amended Plan of Reorganization filed by the Debtor; i. preparing necessary applications, motions, answers, orders, reports and other legal papers on behalf of the Committee, and pursuing or participating in contested matters and adversary proceedings as may be necessary or appropriate in furtherance of the Committee's duties, interest, and objectives; j. advising the Committee on the issues concerning the Memorandum of Understanding (the "MOU") negotiated by the Ad Hoc Committee of Supporting Counsel, and later supported by the Committee; k. assisting, advising, and representing the Committee with respect to matters of Texas law, including contract law and ethical considerations impacting Committee Agreements or actions of individual Committee Member counsel; l. assisting, advising, and representing the Committee in the analysis and evaluation of claims and liens; and m. providing such other services to the Committee as may be necessary or appropriate in these cases. The firm will be paid at these rates: Principals $1,055 to $1,600 per hour Associates $655 to $1,165 per hour Paraprofessionals $325 to $440 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The following is provided in response to the request for additional information set forth in D.1. of the Revised Guidelines: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Response: No. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Response: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Response: Not applicable. Question: Has your client approved your prospective budget and staffing plan, and, if so for what budget period? Response: Not applicable. Lewis T. LeClair, a partner at Mckool Smith, PC disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: McKool Smith Mckool Smith, PC 300 Crescent Ct., Suite 1500 Dallas, TX 75201 Tel: (214) 978-4000 About Red River Talc LLC Red River Talc LLC is a wholly owned subsidiary of Johnson & Johnson, a New Jersey company incorporated in 1887, which first began selling JOHNSON'S Baby Powder in 1894, launching its baby care line of products. Red River Talc LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90505) on September 20, 2024, listing $1 billion to $10 billion in both assets and liabilities. The petition was signed by John K. Kim as chief legal officer. Judge Christopher M. Lopez presides over the case. John F Higgins, IV, Esq. at Porter Hedges LLP represents the Debtor as counsel. RELIABLE ENERGY: Hires MoneySaver Tax Professionals as Bookkeeper ----------------------------------------------------------------- Reliable Energy Solutions, L.L.C. seeks approval from the U.S. Bankruptcy Court for the Western District of Louisiana to employ MoneySaver Tax Professionals, LLC as bookkeeper. The firm will assist the Debtor in the preparation and filing of the tax returns, as well as the handling of other bookkeeping duties in the bankruptcy case. The firm will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Damion Provost, a partner at MoneySaver Tax Professionals, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Damion Provost MoneySaver Tax Professionals, LLC 115 Industrial Pkwy Ste A Lafayette, LA 70508 Tel: (337) 264-8185 Fax: (337) 264-8186 Email: info@moneysavertax.com About Reliable Energy Solutions Reliable Energy Solutions, LLC -- https://resgenerator.com/ -- provides full installation and service of all Generac standby generator systems. Reliable Energy Solutions sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. La. Case No. 24-50826) on September 26, 2024, with $1 million to $10 million in both assets and liabilities.Harry Thibodaux, managing member, signed the petition. Judge John W. Kolwe handles the case. The Debtor is represented by Thomas R. Willson, Esq., at the Law Office of Thomas R. Willson. SARVER REALTY: Case Summary & Four Unsecured Creditors ------------------------------------------------------ Debtor: Sarver Realty Andre Plaza, LLC 8035 McKnight Road Suite 302 Pittsburgh, PA 15237 Business Description: Sarver Realty is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Chapter 11 Petition Date: January 3, 2025 Court: United States Bankruptcy Court Western District of Pennsylvania Case No.: 25-20017 Debtor's Counsel: Ryan J. Cooney, Esq. COONEY LAW OFFICES 223 Fourth Ave Pittsburgh, PA 15222 Tel: (412) 992-7597 E-mail: Rcooney@cooneylawyers.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Matthew H. Moraitis as managing partner. A copy of the Debtor's list of four unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/ECRBOUQ/Sarver_Realty_Andre_Plaza_LLC__pawbke-25-20017__0004.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/H77MI7A/Sarver_Realty_Andre_Plaza_LLC__pawbke-25-20017__0001.0.pdf?mcid=tGE4TAMA SARVER REALTY: Seeks Bankruptcy Protection in Pennsylvania ---------------------------------------------------------- On January 3, 2025, Sarver Realty Andre Plaza LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Pennsylvania. 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 Sarver Realty Andre Plaza LLC Sarver Realty Andre Plaza LLC is a single-asset real estate company based in Pittsburgh, PA. Sarver Realty Andre Plaza LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20017) on January 3, 2025 In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Ryan J. Cooney, Esq. of Cooney Law Offices LLC represents the Debtor as cunsel. SEATON INVESTMENTS: Hires Soffer Law as Special Probate Counsel --------------------------------------------------------------- Susan and Daniel Halevy, the Debtors in the bankruptcy case of Seaton Investments, LLC and its affiliates, seek approval from the U.S. Bankruptcy Court for the Central District of California to employ Soffer Law Group as special probate counsel. Debtors Susan and Daniel Halevy are seeking the employment of special probate counsel to assist them in the administration of a pending probate proceeding in the Los Angeles County Superior Court, in a matter entitled Estate of David Halevy, Decedent, assigned case number 24STPB01963. The firm will be paid at these rates: David Soffer $750 per hour Judy Portnoy $600 per hour Lauren Scher $450 per hour The firm was paid a retainer in the amount of $15,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. David Soffer, Esq., a partner at Soffer Law Group, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: David Soffer, Esq. Soffer Law Group 345 North Maple Drive, Suite 386 Beverly Hills, CA 90210 Telephone: (310) 284-7306 Email: david@sofferlawgroup.com About Seaton Investments Seaton Investments, LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Seaton Investments filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12079) on March 19, 2024, listing $10 million to $50 million in both assets and liabilities. The petition was signed by Alan D. Gomperts as managing member. Judge Vincent P. Zurzolo presides over the case. Derrick Talerico, Esq., at Weintraub Zolkin Talerico & Selth, LLP represents the Debtor as legal counsel. SERTA SIMMONS: HSG Represents LCM Entities in Debt Dispute ---------------------------------------------------------- On December 31, 2024, the U.S. Court of Appeals for the Fifth Circuit ruled that Serta Simmons Bedding LLC'ss restructuring of its debt in June 2020 was not an "open-market purchase" within the meaning of the relevant credit documents and that they did not treat their lenders equally in the debt deal. The ruling reverses the June 2023 judgment in the U.S. Bankruptcy Court for the Southern District of Texas and is a win for Holwell Shuster & Goldberg, the litigation boutique that has been representing the LCM entities in this dispute with Serta since June 2020. By way of background, in June 2020, Serta entered into a transaction where it received $200 million of new-money financing from a group of lenders -- which did not include LCM -- who also agreed to redeem their first- and second-lien loans for a new category of super-priority debt with payment rights ahead of the first-lien loans owned by the LCM entities and others. HSG litigated the case in New York, until the matter moved to bankruptcy court in Texas, where HSG was lead counsel for the LCM entities in a bench trial in May 2023. The December 31 ruling by the Fifth Circuit vindicates the issuers of collateralized loan obligations managed by LCM, who were appellants and had been challenging the transaction since June 2020. The HSG team included partner Vincent Levy, who led the charge on appeal and argued before the Fifth Circuit. He was supported by the appellate and trial team of partners Neil Lieberman and Priyanka Timblo, and associates Brian Goldman and Patrick Woods. About Serta Simmons Bedding Serta Simmons Bedding, together with its non-debtor affiliates, are manufacturers and marketers of bedding products in North America, operating various bedding manufacturing facilities across the United States and Canada. Serta Simmons Bedding, LLC, filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90020) on Jan. 23, 2023. The petitions were signed by John Linker, chief financial officer, treasurer and assistant secretary. At the time of filing, the Debtors estimated $1 billion to $10 billion in both assets and liabilities. During the Chapter 11 process, Weil, Gotshal & Manges LLP served as SSB's legal counsel, Evercore Group L.L.C. served as SSB's investment banker and FTI Consulting, Inc., served as SSB's financial and restructuring advisor. Epiq Corporate Restructuring, LLC, is the claims and noticing agent. Gibson, Dunn & Crutcher LLP served as legal counsel, and Centerview Partners served as financial advisor and investment banker, to an ad hoc group of SSB's priority lenders. SHINECO INC: Signs $32.7 Million SPA With 9 Non-U.S. Investors -------------------------------------------------------------- Shineco, Inc. disclosed in a Form 8-K filed with the Securities and Exchange Commission that on Dec. 24, 2024, it entered into a securities purchase agreement with nine non-U.S. investors. Pursuant to the SPA, the Purchasers agreed to purchase, severally and not jointly, and the Company agreed to issue and sell to the Purchasers, an aggregate of 15,000,000 shares of the Company's common stock, par value $0.001 per share, at a purchase price of $2.18 per share, for an aggregate purchase price of $32,700,000. Each Purchaser has represented that he or she is not a resident of the United States and is not a "U.S. person" as defined in Rule 902(k) of Regulation S under the Securities Act and is not acquiring the Shares for the account or benefit of any U.S. person. The SPA, the transactions contemplated thereby, and the issuance of the Shares have been approved by the Company's board of directors. In reliance on the Purchasers' representations to the Company, the Shares to be issued in the Offering are not subject to the registration requirements of the Securities Act of 1933, as amended, pursuant to Regulation S promulgated thereunder. The SPA contains customary representations and warranties of the Company and the Purchasers, indemnification obligations of the Purchasers, and other obligations and rights of the parties. Additionally, the closing of the Offering is conditioned upon the consummation of certain matters by the Company, including, if required by the Nasdaq Listing Rules, submitting a Listing of Additional Shares Notification Form to Nasdaq and obtaining the approval by Nasdaq of the transactions contemplated thereby. Subject to the satisfaction of the closing conditions, the Offering is expected to close on or about Jan. 17, 2025. About Shineco Inc. Shineco, Inc. is a holding company incorporated in Delaware. As a holding company with no material operations of its own, the Company conducts its operations through its subsidiaries and in the two years ended June 30, 2023 and 2024, through the VIEs and subsidiaries. The Company's shares of common stock currently listed on the Nasdaq Capital Markets are shares of its Delaware holding company. Singapore-based AssentSure PAC, the Company's auditor since 2021, issued a "going concern" qualification in its report dated Sept. 30, 2024, citing that the Company had net losses of approximately US$$24.3 million and US$14.0 million, and cash outflow of US$3.9 million and US$5.4 million from operating activities for the years ended June 30, 2024 and 2023, respectively. As of June 30, 2024 and 2023, the Company had accumulated deficit of US$54.3 million and US$ 31.7 million, respectively, and as of June 30, 2024 and 2023, the Company had negative working capital of US$6.7 million and US28.9 million, respectively. These conditions raise substantial doubt about the Company's ability to continue as a going concern. SINGLEPOINT INC: Widens Net Loss to $4.51 Million in Third Quarter ------------------------------------------------------------------ SinglePoint Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $4.51 million on $5.54 million of revenues for the three months ended Sept. 30, 2024, compared to a net loss of $1.36 million on $6.91 million of revenues for the three months ended Sept. 30, 2023. For the nine months ended Sept. 30, 2024, the Company reported a net loss of $17.25 million on $15.12 million of revenues compared to a net loss of $11.61 million on $20.78 million of revenues for the nine months ended Sept. 30, 2023. As of Sept. 30, 2024, the Company had $14.74 million in total assets, $20.20 million in total liabilities, and a total stockholders' deficit of $5.45 million. Singlepoint said, "As of September 30, 2024, the Company has yet to achieve profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable operations. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. These factors raise substantial doubt about the Company's ability to continue as a going concern." As of Sept. 30, 2024, the Company had approximately $65,000 in cash. The Company's working capital deficit was approximately $15,628,000 at Sept. 30, 2024. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1443611/000147793224008387/sing_10q.htm About Singlepoint Headquartered in Phoenix, AZ, Singlepoint is a diversified holding company principally engaged through its subsidiaries in providing renewable energy solutions and energy-efficient applications to drive better health and living. The Company's primary focus is sustainability by providing an integrated solar energy solution for its customers and clean environment solutions through its air purification business. The Company conducts its solar operations primarily through its subsidiary, The Boston Solar Company LLC, in which it holds an 80.1% equity interest. Dallas, Texas-based Turner, Stone & Company, L.L.P., the Company's auditor since 2017, issued a "going concern" qualification in its report dated July 19, 2024, citing that the Company expects to continue incurring operating losses and generating negative cash flows from operations for the foreseeable future. Additionally, the Company has a significant accumulated deficit and net loss for the period. These conditions raise substantial doubt about the Company's ability to continue as a going concern. SMILEDIRECTCLUB: Katzman, et al v. Scott+Scott Case Stayed ---------------------------------------------------------- Judge Andrew L. Carter, Jr. of the United States District Court for the Southern District of New York ordered that the case captioned as DAVID KATZMAN, et al., Petitioners, -against- SCOTT+SCOTT ATTORNEYS AT LAW LLP, Respondent, 1:24-mc-00570 (ALC) (S.D.N.Y.) be transferred to the United States Bankruptcy Court for the Southern District of Texas. The Clerk of Court is directed to terminate all pending motions, and to stay this case. This miscellaneous action was initiated on December 09, 2024, by a motion to quash a subpoena served on Scott+Scott Attorneys at Law LLP. The subpoena was obtained by David Katzman, Steven Katzman, Kyle Wailes, Richard Schnall, Susan Greenspon Rammelt, and Camelot Venture Group and arises out of an underlying bankruptcy proceeding currently pending in the United States Bankruptcy Court for the Southern District of Texas (In re SmileDirectClub, Inc., Chapter 11, Case No. 23-90786 (Bankr. S.D. Texas)). The subpoena was issued by that Bankruptcy Court. The Petitioners filed a memorandum of law in opposition to the motion to quash and in support of their own cross motion to transfer and compel on December 16, 2024. Scott+Scott filed a notice consenting to the transfer and requesting a stay in this action pending the transfer on December 18, 2024. The District Court finds transfer of this action to the United States Bankruptcy Court for the Southern District of Texas is appropriate. It first observes that the parties do not object to the transfer. The "consent of the person subject to the subpoena is sufficient to permit transfer to the issuing court." The District Court also observes the extensive record in this case involving the bankruptcy proceeding and ongoing securities litigation in state and federal court, which began in 2019. Accordingly, the District Court concludes that the issuing court, the United States Bankruptcy Court for the Southern District of Texas, is in a better position to ensure any ruling is consistent with the underlying litigation. A copy of the Court's decision is available at https://urlcurt.com/u?l=xVmx8u About SmileDirectClub Inc. SmileDirectClub, Inc. (Nasdaq: SDC) -- http://www.SmileDirectClub.com/-- is an oral care company and creator of the first medtech platform for teeth straightening. Through its cutting-edge telehealth technology and vertically integrated model, SmileDirectClub is revolutionizing the oral care industry. Its mission is to democratize access to a smile each and every person loves by making it affordable and convenient for everyone. SmileDirectClub is headquartered in Nashville, Tennessee. SmileDirectClub and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 23-90786) on Sept. 29, 2023. In the petition signed by its chief financial officer, Troy Crawford, SmileDirectClub disclosed $498,712,000 in assets and $1,051,823,000 in liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis International, LLP as general bankruptcy counsel; Jackson Walker, LLP, as local bankruptcy counsel; Centerview Partners, LLC as financial advisor and investment banker; FTI Consulting, Inc., as restructuring advisor; and Kroll Restructuring Administration, LLC, as notice and claims agent. SOLAR BIOTECH: Hires Epiq Corporate as Administrative Advisor ------------------------------------------------------------- Solar Biotech, Inc. and Noblegen Inc. seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Epiq Corporate Restructuring, LLC as their administrative advisor. The firm will render these services: (a) assist with solicitation, balloting and tabulation of votes, and prepare any related reports; (b) prepare an official ballot certification and, if necessary, testify in support of the ballot tabulation results; (c) assist with preparing and gathering information for the Debtors' schedules of assets and liabilities and statements of financial affairs; (d) provide a confidential data room, if requested; (e) manage and coordinate any distributions pursuant to a Chapter 11 plan; and (f) provide such other processing, solicitation, balloting and other administrative services described in the Engagement Agreement. The hourly rates of the firm's professionals are as follows: IT/Programming $65 - $85 Case Managers $85 - $170 Project Managers/Consultants/Directors $185 - $190 Solicitation Consultant $190 Executive Vice President, Solicitation $190 In addition, the firm will seek reimbursement for out-of-pocket expenses incurred. The firm also received a $25,000 retainer from the Debtor. Sophie Frodsham, a senior director at Epiq, disclosed in court filings that her firm is "disinterested" as defined in Section 101(14) of the Bankruptcy Code. Epiq can be reached through: Sophie Frodsham Epiq Bankruptcy Solutions, LLC 777 Third Avenue, 12th Floor New York, NY 10017 Phone: (646) 282-2523 About Solar Biotech Solar Biotech, Inc. and Noblegen Inc. are biotechnology companies with nearly five years of experience in scaling biotech designs and prototypes on a commercial scale. They provide services to customers in the form of various phases, which are as follows: (i) concept development; (ii) develop prototypes; (iii) optimize costs; (iv) use prototype samples for business development and sampling; and (v) commercialization agreements to help transfer developed technology into commercial products. By offering a wide range of services, the Debtors are able to successfully meet the varying needs of its customers across the biotech market. Solar Biotech and Noblegen filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 24-11402) on June 23, 2024, with $10 million to $50 million in both assets and liabilities. Judge Laurie Selber Silverstein oversees the cases. The Debtors tapped Porzio, Bromberg & Newman, P.C. as bankruptcy counsel; Newpoint Advisors Corporation as financial advisor; and Epiq Corporate Restructuring, LLC 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. The committee tapped Brinkman Law Group, PC as bankruptcy counsel, Esbrook, PC as Delaware counsel, and Young America Capital, LLC as financial advisor. SOUTHERN TIER: Patients Frustrated on Sudden Bankruptcy Declaration ------------------------------------------------------------------- Stefan Ayanian of WETM Elmira reports that the unexpected closure of Southern Tier Orthodontics in Elmira has left patients frustrated after receiving a text message announcement on Thursday, Jan. 2, from orthodontist Jason Horn, who has filed for bankruptcy. The closure has also affected Charlie Todd, co-owner of Chamberlain Acres Garden Center & Florist, who provided services to Dr. Horn. Todd stated that Dr. Horn ordered over 30 poinsettia plants, valued at nearly $2,000, just two and a half weeks before Christmas for delivery to local dental offices and colleagues, according to the report. However, Todd has yet to receive payment for the order. “Our agreement was for payment upon delivery, a practice we’ve followed for years,” Todd said. "Now, he's unresponsive and no longer answering calls. For a small business like ours, losing such a significant amount during the holiday season is a big blow." A Facebook group called "Patients of Southern Tier Ortho" has been formed, with members sharing their concerns and reactions to the closure. One member, Gina Marie, posted, "Has anyone who has been making payments ever received a statement from Dr. Horn? I've been making monthly payments for nearly two years and have never received one. I have no idea how much I've paid or how much I still owe." In a statement to 18 News, another patient said, "We've been patients of Dr. Bellohusen for about 8 years, and when Dr. Horn took over a few years ago, the transition seemed seamless. In July, I paid in full for Invisalign, but after weeks of no updates, we called again. In early December, Dr. Horn apologized repeatedly and begged us to give them another chance." The family had a treatment session on December 30, where they were not seen by a doctor, and a rubber band on the braces broke. The patient added, "I was planning to call after the holiday to get it fixed, but then we received a text on Thursday informing us that the office was closing, Dr. Horn was declaring bankruptcy, and there would be no reimbursement for those who paid in full." Additionally, Charlie Todd mentioned he has reached out to the Chemung County District Attorney's office for possible recourse and is awaiting a response. About Southern Tier Orthodontics Southern Tier Orthodontics provides orthodontics services in Elmira, New York SPECIAL EFFECTS: Seeks Bankruptcy Protection in California ---------------------------------------------------------- On January 5, 2025, Special Effects Unlimited, Inc., filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Special Effects Unlimited, Inc. Special Effects Unlimited, Inc. is based in Sun Valley, California, operates as a specialized rental provider of film and entertainment industry effects equipment, including weather effects, wind machines, fog systems, and physical effects equipment. The company maintains operations at 8942 Lankershim Blvd. and serves the greater Los Angeles entertainment market. Special Effects Unlimited, Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal.Case No. 25-10015) on January 5, 2025 In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Victoria S. Kaufman handles the case. Marc A. Goldbach of Goldbach Law Group represents the Debtor as counse. STAR WELLINGTON: Court OKs Interim Use of Cash Collateral --------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida granted Star Wellington, LLC interim authorization to use cash collateral. The interim order permitted Star Wellington, LLC to use cash collateral to pay expenses set forth in its court-approved budget, plus an amount not to exceed 10% for each line item. The budget projects monthly operational expenses of $191,945 for January to March and $154,975 for April. Star Wellington will make a monthly payment of $10,000 to Pinnacle Bank Assignee of Fund-Ex Solutions Group as adequate protection for the use of cash collateral. The next hearing is scheduled for Jan. 14. About Star Wellington LLC Star Wellington, LLC is a restaurant that offers a fusion of Italian flavors and Franco flair. Star Wellington filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case. No. 24-18574) on August 23, 2024, listing $314,093 in assets and $2,443,171 in liabilities. The petition was signed by Adam Hopkins as manager and owner. Judge Mindy A. Mora oversees the case. Dana Kaplan, Esq., at Kelley Kaplan & Eller, PLLC represents the Debtor as legal counsel. STATEN ISLAND JEWISH: Unsecureds Will Get 15% over 60 Months ------------------------------------------------------------ Staten Island Jewish Heritage Network Inc. d/b/a SIHA Foundation filed with the U.S. Bankruptcy Court for the Eastern District of New York an Amended Disclosure Statement describing Amended Chapter 11 Plan of Reorganization dated December 20, 2024. The Debtor is not-for-profit organization, with the mission to educate, inspire, and empower the Staten Island Russian-community to re-discover the richness of their Jewish heritage and culture. The Plan will be funded from the funds accumulated on the Debtor's DIP account, from the date of the petition, as well as from continuing operating income and reorganized business operations of the Debtor. In addition, the Plan will be funded from the contribution of Staten Island Hebrew Academy, the tenant and related entity. Class 5 consists of general unsecured creditors of the Debtor, totaling $387,519.10. This Class is impaired. * NYS Dept. of Taxation & Finance with a claim amount of $3,480.09 shall be paid 15% ($522.02) dividend in 60 monthly installment payments in the amount of $8.70 commencing on the effective date. * NYS Department of Labor with a claim amount of $83,254.05 shall be paid 15% ($12,488.10) dividend in 60 monthly installment payments in the amount of $208.13 commencing on the effective date. * Consolidates Edison Company of New York Inc. with a claim amount of $718.04 shall be paid 15% ($107.70) dividend in 60 monthly installment payments in the amount of $1.79 commencing on the effective date. * Internal Revenue Service with a claim amount of $239,363.14 shall be paid 15% ($35,904.47) dividend in 60 monthly installment payments in the amount of $598.40 commencing on the effective date. * Re Tax Service LLC with a claim amount of $12,224.45 shall be paid 15% ($1,833.66) dividend in 60 monthly installment payments in the amount of $30.56 commencing on the effective date. * National Grid with a claim amount of $8,479.33 shall be paid 15% ($1,271.89) dividend in 60 monthly installment payments in the amount of $21.19 commencing on the effective date. * Z&F Enterprises, LLC with a claim amount of $40,000.00 shall be paid 15% ($6,000.00) dividend in 60 monthly installment payments in the amount of $100.00 commencing on the effective date. Class VI consists of equity interest holders. Steven Uzhansky shall retain his interest in the Debtor following Confirmation, in consideration of a new value contribution, being made by them as the equity holders, toward the payment of general unsecured creditor claims. A full-text copy of the Amended Disclosure Statement dated December 20, 2024 is available at https://urlcurt.com/u?l=Y9kPRh from PacerMonitor.com at no charge. Staten Island Jewish Heritage Network Inc. is represented by: Alla Kachan, Esq. LAW OFFICES OF ALLA KACHAN, P.C. 2799 Coney Island Avenue., Suite 202 Brooklyn, NY 11235 Telephone: (718) 513-3145 Email: alla@kachanlaw.com About Staten Island Jewish Heritage Network Staten Island Jewish Heritage Network Inc. owns real property located at 3495 Richmond Rd, Staten Island NY valued at $1.7 million. Staten Island Jewish Heritage Network Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-42581) on July 21, 2023. The petition was signed by Steven Uzhansky as president. At the time of filing, the Debtor estimated $1,700,088 in assets and $2,902,436 in liabilities. Judge Elizabeth S. Stong presides over the case. Alla Kachan, Esq., at LAW OFFICES OF ALLA KACHAN, P.C., is the Debtor's counsel. STRATIGOS DYNAMICS: Plans to File Bankruptcy Protection ------------------------------------------------------- Crystal Stevenson of American Press reports that Stratigos Dynamics Inc. (SDI), the company responsible for providing security at Calcasieu Parish public schools, has announced its intention to file for bankruptcy. The Calcasieu Parish School Board (CPSB) was informed of the decision on January 3, 2025. "A notice was sent to all SDI clients without any prior communication from the company's leadership," said CPSB spokesperson Holly Holland. "As a district, we immediately began developing alternate security plans, as SDI has been providing security services to 38 of our campuses for several years." According to American Press, the School Board is now focused on securing new security measures to ensure uninterrupted safety for its students and staff. Holland reaffirmed the district's commitment to ensuring the safety of students and staff. "We are actively developing a plan to maintain security across our campuses," she stated. "We have informed our administrative teams and will continue to provide updates to families as the situation evolves. We are grateful for everyone's patience and understanding during this process," she added. About Stratigos Dynamics Inc. Stratigos Dynamics Inc. provides security at Calcasieu Parish public schools. SUBSTATION SERVICES: Taps Elite Accounting Solutions as Accountant ------------------------------------------------------------------ Substation Services, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Wisconsin to employ Brandon Faschingbauer and the firm of Elite Accounting Solutions, LLC, as its accountant and bookkeeper. The firm's services include: -- keeping the Debtor's books, including records of income, expense and disbursements; -- reconciling the Debtor's with bank account statements; -- preparing operating reports; and -- communicating with the Debtor and undersigned counsel. The firm's rates are: -- $250 initial setup fee; -- $375 per month for bookkeeping; and -- $90 per hour for other services (such as assisting with operating reports) As disclosed in the court filings, Elite Accounting Solutions, LLC does not hold or represent any interest adverse to the Debtor or its Chapter 11 estate, its creditors, or any other party in interest, and is a "disinterested person" as that term is defined in Section 101(14) and 327 of the Bankruptcy Code. The firm can be reached through: Brandon Faschingbauer Elite Accounting Solutions, LLC P.O. Box 3934 Hillsboro, OR 97123 Email: hello@eliteaccountingteam.com Phone: (877) 565-5348 Fax: (503) 324-0748 About Substation Services Substation Services, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wis. Case No. 24-11606) on Aug. 12, 2024, listing under $1 million in both assets and liabilities. Joshua Christianson, Esq., at Christianson & Freud, LLC serves as the Debtor's counsel. SUIRAD GROUP: Case Summary & Four Unsecured Creditors ----------------------------------------------------- Debtor: suirad group llc 260 Peachtree St NW, Suite 2200 Atlanta, GA 30303 Chapter 11 Petition Date: January 3, 2025 Court: United States Bankruptcy Court Northern District of Georgia Case No.: 25-50072 Debtor's Counsel: Cameron M. McCord, Esq. JONES & WALDEN LLC 699 Piedmont Avenue NE Atlanta, GA 30308 Tel: 404-564-9300 E-mail: info@joneswalden.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Darius George as manager. A full-text copy of the petition containing, among other items, a list of the Debtor's four unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/7FWU6NI/suirad_group_llc__ganbke-25-50072__0001.0.pdf?mcid=tGE4TAMA SUIRAD GROUP: Commences Subchapter V Bankruptcy Process ------------------------------------------------------- On January 3, 2025, Suirad Group LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Georgia. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Suirad Group LLC Suirad Group LLC is a limited liability company. Suirad Group LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50072) on January 3, 2025 In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Cameron M. McCord of Jones & Walden, LLC represents the Debtor as counsel. SUPERIOR PLUS: DBRS Confirms BB(high) Issuer Rating --------------------------------------------------- DBRS Limited confirmed the Issuer Rating of Superior Plus LP at BB (high) and the Company's Senior Unsecured Debentures rating at BB, with a recovery rating of RR5. All trends are Stable. KEY CREDIT RATING CONSIDERATIONS Superior Plus's financial performance in the nine months to September 2024 was pressured by relatively warmer average winter temperatures, which affects volumes and pricing in the propane distribution. As a result, Morningstar DBRS expects the full year 2024 financial risk assessment to remain moderately weak, despite full consolidation of Certarus. The credit ratings are largely supported by Superior Plus's business risk assessment as an established mobile energy distributor with a solid market position in the U.S. and Canada and its ability to hold out through cyclical headwinds including weather variability. The credit ratings are constrained by the Company's high leverage from a recent history of debt-funded acquisitions, where lease-adjusted debt-to-EBITDA exceeded 4.5 times (x). The RR5 recovery rating on the Senior Unsecured Debentures considers the large amount of senior secured debt that ranks in priority to the rated instruments. The Stable trends reflect Morningstar DBRS expectation that Superior Plus will achieve steady growth in earnings and operating cash flows and that the credit metrics will gradually strengthen over the medium term to a level more commensurate with the current Issuer Rating. The Company has come off its accelerated acquisition phase, and this should allow for some strengthening in the credit metrics in the next two to three years, with adjusted debt-to-EBITDA progressing toward 4x in the medium term. (Please note that Morningstar DBRS EBITDA calculations are adjusted for realized gains and losses on commodity risk management, and gross debt include a quarter portion of the $260 million preferred share capital). CREDIT RATING DRIVERS Morningstar DBRS may consider a negative rating action if some or all of the following conditions occur: (1) a weaker-than-expected performance, (2) an increase in the level of indebtedness that caused credit metrics to deteriorate below what is considered acceptable within the current credit rating range on a normalized, sustained basis, particularly the forecast gross debt-to-EBITDA at or higher than 4.5x; and/or (3) a permanent negative shift in the business risk profile, such as loss of market position. Conversely, although not likely in the medium term, a positive credit rating action may be considered if the Company demonstrated a commitment to a materially stronger financial risk assessment over a longer period while maintaining its current business risk assessment. EARNINGS OUTLOOK Morningstar DBRS expects that Superior Plus's 2025 adjusted EBITDA growth to remain relatively flat relative to 2024, benefitting from normalization of operating and corporate costs and an expectation of volumes recovery in the propane distribution segment; offset by growing competition at Certarus Ltd. (Certarus) that puts pressure on the sales margin. The Company's 2025 adjusted EBITDA could moderately grow to approximately $500 million if the expected benefit from the Company's recently launched `Superior Delivers' efficiency and growth initiatives materialize as planned. EBITDA margins are expected to be in the upper teens, reflecting Superior Plus's ability to pass incremental costs to customers. Morningstar DBRS does not anticipate any major acquisition activity in the medium term as the Company focus on growing organically. FINANCIAL OUTLOOK Interest expenses are expected to trend down to approximately $90 million, benefitting from favorable variable rates on the updated revolving credit facilities. As a result, cash flow from operations growth is expected to outpace EBITDA and amount to approximately $340 million. The Company's capital expenditure is expected to remain elevated at approximately $190 million. About 60-65% of capital spending is estimated to be for the expansion of mobile storage units at Certarus, as the Company explores organic growth opportunities in the compressed natural gas (CNG) and renewable natural gas (RNG) distribution segment; albeit at a moderate pace vis-à-vis the last twelve months. Superior Plus has guided for a capital policy that favors growth spending, and distributions to shareholders in a form of dividends are expected to be lower, compared with 2024. As a result, free cash flow after capital expenditure and changes in working capital is expected to be positive. CREDIT RATING RATIONALE The credit ratings are underpinned by the Company's strong market position and a solid brand as a propane distributer, ranking number one in Canada and number four in the United States. The Company has strategically increased its footprint and product mix in the low carbon energy distribution through the acquisition of Certarus, a distributor of CNG, RNG, and hydrogen for commercial and industrial uses. The credit ratings acknowledge the fragmented nature of the mobile energy distribution market, exposure to external factors including weather and seasonality, and growing alternative energy supply from electrification and piped natural gas. Notes: All figures are in U.S. dollars unless otherwise noted. TEMADA INC: Seeks to Hire David W. Langley as Bankruptcy Counsel ---------------------------------------------------------------- Temada, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire David W. Langley, Attorney At Law, as its legal counsel. The firm will provide these services: a. give advice to the Debtor with respect to its powers and duties and the continued management of its business operations; b. advise the Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the Rules of Court; c. prepare motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the administration of the Debtor's Chapter 11 case; d. protect the interest of the Debtor in all matters pending before the court; and e. represent the Debtor in negotiation with its creditors in the preparation of a Chapter 11 plan. The firm will be paid based upon its normal and usual hourly billing rates. It will also be reimbursed for reasonable out-of-pocket expenses incurred. David Langley, Esq., assured the court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: David W. Langley, Esq. 8551 W. Sunrise Boulevard, Suite 303 Plantation, FL 33322 Tel: (954) 356-0450 Fax: (954) 356-0451 Email: dave@flalawyer.com 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. TERRAFORM LABS: Founder Do Kwon Denies $40 Billion Crypto Fraud --------------------------------------------------------------- Pete Brush of Law360 reports that Terraform Labs founder Do Kwon appeared in Manhattan federal court on January 2, 2025, denying allegations that he orchestrated a $40 billion fraud by misleading customers and investors about the cryptocurrency platform's real-world viability. About Terraform Labs Terraform Labs Pte. Ltd. -- https://www.terra.money/ -- is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins. It was co-founded by Do Kwon and Daniel Shin in 2018 in Seoul, South Korea. Terraform Labs introduced its first cryptocurrency token, TerraUSD, in 2019. Investment firms like Arrington Capital, Coinbase Ventures, Galaxy Digital, and Lightspeed Venture Partners helped Terraform Labs raise more than $200 million. The collapse of the stablecoins TerraUSD (UST) and Luna in May 2022 caused the temporary suspension of the Terra network, wiping out over $45 billion in market capitalization in a single week. Both of Terra Form Labs' founders have encountered legal problems as a result of the devaluation of the company's currency. In September 2022, South Korean prosecutors filed a warrant for Do Kwon's arrest. He was also added to Interpol's Red Notice list, which urges other law enforcement to find and detain him. Terraform Labs Pte. Ltd. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-10070) on Jan. 22, 2024. In the petition filed by Chris Amani, as chief executive officer, the Debtor estimated assets and liabilities between $100 million and $500 million each. The Debtor is represented by Zachary I Shapiro, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware. TEXAS SOLAR: Hires South Texas Business as Special Counsel ---------------------------------------------------------- Texas Solar Integrated, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ South Texas Business Lawyers, PLLC as special counsel. The firm will provide these services: a. assisting general corporate legal matters and certain litigation matters that are not otherwise being directly handled by the Debtor's bankruptcy counsel; b. representing the Debtor in connection with transactions between the Debtor and special purpose vehicles with whom the Debtor has pre-petition contracts and relationships; and c. assisting in general administrative matters associated with the Debtor's bankruptcy case regarding Duke's employment and fee applications to be filed with the Court. The firm will be paid at these rates: Matthew Duke (Partner) $399 per hour Paralegal $78 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Matthew Duke, Esq., a partner at South Texas Business Lawyers, PLLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Matthew Duke, Esq. South Texas Business Lawyers, PLLC 110 E Houston St. 7th Floor #35 San Antonio, TX 78205 Tel: (210) 761-6294 About Texas Solar Integrated, LLC Texas Solar Integrated, LLC is a solar panel installation company in San Antonio, Texas. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Texas Case No. 24-52297) on November 14, 2024, with $50 million to $100 million in assets and $10 million to $50 million in liabilities. Mike Sardo, manager, signed the petition. Judge Michael M. Parker oversees the case. Ray Battaglia, Esq., at the Law Offices of Ray Battaglia, PLLC, represents the Debtor as bankruptcy counsel. TGI FRIDAY'S: Committee Hires Province LLC as Financial Advisor --------------------------------------------------------------- The official committee of unsecured creditors of TGI Friday's Inc. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Province, LLC as Financial Advisor. The firm's services include: a. becoming familiar with and analyzing the Debtors' DIP budget, assets and liabilities, and overall financial condition; b. reviewing financial and operational information furnished by the Debtors; c. monitoring the sale process, interfacing with the Debtors' professionals, and advising the Committee regarding the process; d. scrutinizing the economic terms of various agreements, including, but not limited to, various professional retentions; e. analyzing the Debtors' proposed business plans and developing alternative scenarios, if necessary; f. assessing the Debtors' various pleadings and proposed treatment of unsecured creditor claims therefrom; g. preparing, or reviewing as applicable, avoidance action and claim analyses; h. assisting the Committee in reviewing the Debtors' financial reports, including, but not limited to, statements of financial affairs, schedules of assets and liabilities, DIP budgets, and monthly operating reports; i. advising the Committee on the current state of these chapter 11 cases; j. advising the Committee in negotiations with the Debtors and third parties as necessary; k. if necessary, participating as a witness in hearings before the Court with respect to matters upon which Province has provided advice; and l. other activities as are approved by the Committee, the Committee's counsel, and as agreed to by Province. The firm will be paid at these hourly rates: Managing Directors and Principals $870 to $1,450 Vice Presidents/Directors/ Senior Directors $690 to $950 Analysts/Associates/Senior Associates $370 to $700 Other/Para-Professional $270 to $410 The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Adam Rosen, a partner at Province, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Adam Rosen Province, LLC 2360 Corporate Circle Suite 340 Henderson, NV 89074 Telephone: (702) 685-5555 Email: arosen@provincefirm.com About TGI Friday's Inc TGI Friday's Inc., doing business as Wow Bao, operates a chain of restaurants. The Company provides appetizers, sizzlings, seafood, salads, sandwiches, entres, desserts, and non-alcoholic and alcoholic beverages. Wow Bao serves customers in the United States. TGI Friday's Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-80069) on Nov. 2, 2024, listing $100,000,001 to $500 million in both assets and liabilities. Judge Stacey G Jernigan presides over the case. Holland N. O'Neil, Esq. at Foley & Lardner LLP represents the Debtor as counsel. TGI FRIDAY'S: Former CEO to Oversee Locations Post Chap. 11 ----------------------------------------------------------- Sasha Rogelberg of Fortune reports that Ray Blanchette, the former CEO of TGI Friday's who introduced sushi to the chain, will now take the lead in overseeing more than 400 locations following the company's Chapter 11 bankruptcy filing in November due to ongoing pandemic-related challenges. According to the report, Blanchette, who led TGI Fridays from 2018 to 2023, will step back in as the company's new management, replacing FTI Consulting, which had been overseeing the chain after it defaulted on its debt. As the founder and CEO of Sugarhill Hospitality, Blanchette also owns seven TGI Fridays locations. Along with his new role, Blanchette will manage the sale of nine corporate-owned locations for $34.9 million, which was approved by the court. TGI Fridays, known for its hearty portions of pub fare, has faced tough competition from fast-casual chains like Shake Shack and Chili's. The company has cycled through three CEOs since Blanchette's departure and has closed more than 100 locations in the last 2024. Blanchette has expressed interest in reviving the brand. He acquired several TGI Fridays locations in January and made an unsuccessful bid for the nine locations recently approved for sale. While his leadership began in 2018, his time at TGI Fridays faced struggles as the pandemic took its toll. The chain introduced sushi in collaboration with C3's Krispy Rice, which saw initial success but ultimately could not reverse the company's decline. Founded in 1965 as a singles bar in Manhattan, TGI Fridays once enjoyed major success with its extensive bar program. However, after rebranding in the 2000s as a family-friendly establishment, its growth slowed. By 2023, U.S. sales had fallen to $728 million, down from a peak of $2 billion in 2008. After being acquired by private equity firms in 2014, the company's financial difficulties deepened, leading to a bankruptcy filing in 2023. The management change resulted in Blanchette's return. Now, Blanchette is committed to restoring TGI Fridays, saying, "I don't want to see the brand go away." About TGI Fridays Founded in 1965 in New York City, New York, TGI Friday's Inc. and affiliates are the owners and franchisors of original casual dining bar and grill, TGI Fridays, offering classic American food and beverages, with 39 restaurant locations being owned and operated by the Company. The Company is known for bringing people together to socialize and celebrate the liberating spirit of "Friday." TGI Friday's Inc. and about 20 of its affiliates filed for bankruptcy protection (Bankr. N.D. Texas, Lead Case No. 24-80069) on November 2, 2024. In petitions signed by Kyle Richter as chief restructuring officer, the Debtors reported $100 million to $500 million in estimated consolidated assets and estimated consolidated liabilities. The Hon. Stacey G. Jernigan presides over the cases. Ropes and Gray LLP serves as the Debtors' general bankruptcy counsel, and Foley & Lardner LLP serves as the Debtors' co-bankruptcy counsel. Berkeley Research Group, LLC acts as financial advisor to the Debtors and Stretto, Inc. is notice and claims agent to the Debtors. THOMAS ROOFING: Gets Interim OK to Use Cash Collateral Until Feb. 6 ------------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, granted Thomas Roofing and Repair, Inc.'s emergency motion to use cash collateral until Feb. 6. The company was authorized to use cash collateral to pay amounts expressly authorized by the court, including payments to the Subchapter V trustee and expenses set forth in its budget. Secured creditors were granted a post-petition lien on the cash collateral, with the same validity and priority as their pre-bankruptcy lien. The next hearing is scheduled for Feb. 6. About Thomas Roofing & Repair Thomas Roofing & Repair, Inc. provides roofing replacement and repair services for commercial and residential properties. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05788) on October 26, 2024, with $466,403 in assets and $2,428,473 in liabilities. Matthew Thomas, company owner, signed the petition. Judge Tiffany P. Geyer oversees the case. L. Todd Budgen, Esq., at Budgen Law, represents the Debtor as bankruptcy counsel. TOWER PARK: Court Affirms Dismissal of FTIC Adversary Case ---------------------------------------------------------- The Honorable Christina A. Snyder of the United States District Court for the Central District of California affirmed the decision of the United States Bankruptcy Court for the Central District of California dismissing Tower Park Properties LLC's first amended complaint with prejudice. On December 15, 2016, plaintiff Tower Park Properties filed a bankruptcy court adversary proceeding against defendant Fiduciary Trust International of California. FTIC was sued in its capacity as Trustee of the Mark Hughes Family Trust. TPP alleged that FTIC breached a settlement agreement which TPP executed with the previous trustees of the Trust on January 3, 2013. TPP alleged claims for (1) breach of contract and (2) breach of the implied covenant of good faith and fair dealing. On March 22, 2017, the United States Bankruptcy Court, the Hon. Barry Russell, presiding, stayed plaintiff's adversary proceeding pending resolution of a related Ninth Circuit appeal. On November 27, 2017, the Ninth Circuit issued its ruling, ER 1587-1589, and FTIC subsequently revived this adversary proceeding. On April 4, 2018, after the Ninth Circuit issued its opinion, FTIC moved for judgment on the pleadings. On June 7, 2018, following a hearing, the Bankruptcy Court granted defendant's motion with prejudice. On August 21, 2018, plaintiff filed an appeal of the Bankruptcy Court's ruling. On February 6, 2019, this Court affirmed the Bankruptcy Court's ruling. On January 7, 2022, the Court vacated its prior order insofar as it denied leave to amend and remanded the case to the Bankruptcy Court to "consider in the first instance whether granting leave to TPP to file [an amended complaint] should be denied on the ground of futility or on other grounds, and to consider whether leave should be granted without prejudice to its consideration of a motion to dismiss the amended pleading." On March 31, 2022, the Bankruptcy Court granted plaintiff leave to file a first amended complaint. On April 15, 2022, plaintiff filed a FAC. In the FAC, TPP contends that FTIC's alleged breaches resulted in foreclosure, in 2019, on a highly valuable piece of Beverly Hills property that it previously owned. TPP alleges that the foreclosure occurred because TPP was unable to repay its creditors and otherwise avail itself of the benefits of the Settlement Agreement. On May 6, 2022, defendant filed a motion to dismiss the FAC. On July 5, 2022, following a hearing, the Bankruptcy Court granted defendant's motion to dismiss the FAC. On July 7, 2022, plaintiff appealed the Bankruptcy Court's ruling. The parties argue three issues on appeal: (1) whether FTIC became a successor-in-interest to the original Trustees when it was appointed trustee ad litem by the Probate Court; and (2) if so, whether TTP plausibly alleges that FTIC breached the Best Efforts Provisions in the Settlement Agreement by causing Alexander, through collusion, to file his appeal within the fourteen-day period, thus voiding the Conditional Provisions. TPP further argues that (3) the Bankruptcy Court abused its discretion in denying it further leave to amend. Successor-in-interest The District Court finds that the law of the case doctrine does not require it to conclude that FTIC, as trustee ad litem, succeeded to the original Trustees' obligations under the Settlement Agreement. The District Court finds that the only relevant decision that is law of the case 1s the Ninth Circuit's decision 1n In re Tower Park Properties, LLC, 704 F. App'x 702 (9th Cir. 2017). The Ninth Circuit did not reach the issue of whether FTIC succeeded to the Settlement Agreement; instead, it dismissed FTIC's appeal as moot. Thus, the Bankruptcy Court did not violate the law of the case doctrine and abuse its discretion in finding, 1n 2018 and 2022, that FTIC did not succeed to the Settlement Agreement. The District Court is also not bound by any prior decisions, other than the Ninth Circuit's decision. As it did in 2019, it declines to reach the successor-in-interest issue, given its finding that even if FTIC succeeded to the Settlement Agreement, TPP's claims fail as a matter of law. Best Efforts Provisions TPP argues that its FAC plausibly alleges that FTIC breached the Best Efforts Provisions of the Settlement Agreement in at least eleven ways between January 10, 2013 and February 5, 2013. TPP contends that it alleges "specific dates FTIC and Alexander met and planned Alexander's appeal and the existence of specific communications they had throughout this'"time"—facts that could lead a jury to conclude that FTIC's breaches were a substantial factor in causing Alexander's appeal and TPP's loss. TPP asserts that the Bankruptcy Court erred to the extent it applied a but-for causation standard, but argues that even if such a standard applied, dismissal would not be appropriate at this stage, because causation is a fact issue. The District Court finds that TPP's theory is implausible, and is contradicted by its own allegations and the Ninth Circuit's 2017 decision. Amendment According to the District Court, the Bankruptcy Court did not abuse its discretion in finding that further amendment would be futile. The alleged breaches in the FAC, which TPP appears to assert as grounds for tortious conduct, include the following: that FTIC and Alexander communicated and developed their litigation strategy together; that FTIC and Alexander coordinated the filing of their objections; that FTIC worked with Alexander's counsel: that FTIC assisted Alexander in filing his objection; that FTIC filed its own objection; that FTIC appeared at the hearing to oppose the Settlement Agreement; that FTIC had "lengthy discussions" with Alexander's counsel and met with him to plan Alexander's appeal; and that FTIC assisted Alexander in filing his appeal. The District Court finds that the alleged conduct of FTIC and Alexander, as well as FTIC and Alexander's counsel, occurred in connection with the Bankruptcy Court proceeding and subsequent appeals. These were judicial proceedings in which FTIC was an authorized participant. The District Court finds that alleged communications between FTIC and Alexander on how to proceed regarding the Settlement Agreement were privileged. As FTIC's alleged conduct in connection with the proceedings is protected from tort liability by the litigation privilege, any amendment to plead tortious interference would be futile. A copy of the Court's decision is available at https://urlcurt.com/u?l=6NuMzS About Tower Park Properties LLC A group of creditors filed an involuntary Chapter 7 petition against Tower Park Properties (Bankr. C.D. Calif. Case No.19-16278) on May 30, 2019. The petitioning creditors are represented by David B. Golubchik, Esq., at Levene, Neale, Bender, Yoo & Brill LLP. On June 21, 2019, the bankruptcy court approved a stipulation between Tower Park Properties and the petitioning creditors to convert the case to one under Chapter 11. The case is assigned to Judge Barry Russell. TROPHY CUPCAKES: Gets Final OK to Use Cash Collateral Until June 30 ------------------------------------------------------------------- Trophy Cupcakes, LLC received final approval from the U.S. Bankruptcy Court for the Western District of Washington to use cash collateral until June 30. The company was authorized to use cash collateral for post-petition business expenses set forth in its projected budget. Insider payments are prohibited except for the bi-weekly salaries of Jennifer Shea and Mike Williamson totaling $8,466 ($4,233 each). The U.S. Small Business Administration and Washington Trust Bank were granted replacement liens on the company's post-petition revenues to the same extent and with the same priority and validity as their pre-bankruptcy liens. As additional protection, the SBA will receive a monthly payment of $4,941 starting Jan. 15. The agency is also entitled to a superpriority claim over the life of Trophy Cupcakes' bankruptcy case to the extent of any diminution in the value of its collateral. About Trophy Cupcakes LLC Trophy Cupcakes, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-13083) on December 3, 2024, with $100,001 to $500,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Jennifer Shea as member. Judge Christopher M Alston oversees the case. The Debtor is represented by Faye C Rasch, Esq., at Wenokur Riordan, PLLC. TRUCK LITE: Oaktree Strategic Marks $143,000 Loan at 52% Off ------------------------------------------------------------ Oaktree Strategic Credit Fund has marked its $143,000 loan extended to Truck-Lite Co., LLC to market at $68,000 or 48% of the outstanding amount, as of September 30, 2024, according to a disclosure contained in Oaktree Strategic’s Form 10-K for the Quarterly Period Ended September 30, 2024, filed with the Securities and Exchange Commission. Oaktree Strategic is a participant in a First Lien Revolver (SOFR + 5.75%) to Truck-Lite Co., LLC. The loan accrues interest at a rate of 10.85% Payment in Kind per annum. The loan matures on February 13, 2030. Oaktree Strategic is a specialty finance company with a focus on and a goal of providing financing solutions to high-growth, innovative venture capital-backed and institutional-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries. Hercules is a Maryland corporation formed in December 2003 that began investment operations in September 2004. On February 25, 2016, Hercules changed its name from Hercules Technology Growth Capital, Inc to Hercules Capital, Inc. Oaktree Strategic is led by Armen Panossian, Chairman, Chief Executive Officer and Co-Chief Investment Officer; and Christopher McKown, Chief Financial Officer and Treasurer. The fund can be reach through: Armen Panossian Oaktree Strategic Credit Fund 333 South Grand Avenue, 28th Floor Los Angeles, CA, 90071 Tel: (213) 830-6300 Truck-Lite is a global leader in commercial transportation safety lighting. TRUSTED HEATING: Gets Interim OK to Use Cash Collateral ------------------------------------------------------- Trusted Heating & Cooling Solutions, Inc. on Jan. 3 received interim approval from the U.S. Bankruptcy Court for the Eastern District of Michigan, Southern Division, to use cash collateral. The company intends to use $70,431 in cash collateral as working capital to operate its business. It projects $40,000 in total income and $13,000 in total expenses for the period from Jan. 7 to 13. As adequate protection for the diminution in value of cash collateral, the company will maintain the value of its business as a going concern and will provide replacement liens. Old National Bank holds a first lien on assets of the company, including cash collateral, to secure the company's debt of $100,000. The assets have a value of $173,057, though they have not been appraised. Old National Bank is therefore fully secured. The next hearing is set for Jan. 15. About Trusted Heating & Cooling Trusted Heating & Cooling Solutions, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-32422) on December 23, 2024, with $100,001 to $500,000 in assets and liabilities. Judge Joel D. Applebaum presides over the case. George E. Jacobs, Esq., at the Bankruptcy Law Offices represents the Debtor as bankruptcy counsel. TW MEDICAL: Hires King & Spalding LLP as Special Counsel -------------------------------------------------------- TW Medical Group, LLC seeks approval from the U.S. Bankruptcy Court for the District of Utah to employ King & Spalding LLP as special counsel. The firm will provide these services: a. defending payor contractor audits; b. assessing reimbursement risks; c. litigating payor disputes; d. assisting with regulatory compliance; and e. providing all other legal services for Debtor which may be necessary in the healthcare realm. The firm will be paid at these rates: Juliet McBride, Lead counsel $1,650 per hour Associates $810 to $1,480 per hour Paralegals $680 to $880 per hour The firm received a retainer in the amount of $20,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Juliet McBride, Esq., a partner at King & Spalding LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Juliet McBride, Esq. King & Spalding LLP 1100 Louisiana Street Suite 4100 Houston, TX 77002 Tel: (713) 751 3200 About TW Medical Group, LLC TW Medical Group, LLC is a podiatry practice offering state-of-the-art care across many locations in the United States. The Company provides care for patients of all ages, from infants to older adults. Its podiatry team specializes in diagnosing and treating many foot and ankle conditions, including plantar fasciitis, tendonitis, ingrown toenail, toenail fungus, bunions, and flat feet. TW Medical Group and Taylor G. Wright, P.C. filed Chapter 11 petitions (Bankr. D. Utah Lead Case No. 24-25495) on October 23, 2024. Zachary Paul, chief financial officer, signed the petitions. At the time of the filing, TW Medical Group reported $10 million to $50 million in both assets and liabilities while Taylor G. Wright reported $100,001 to $500,000 in assets and $1 million to $10 million in liabilities. Judge Joel T. Marker oversees the cases. George B. Hofmann, Esq., at Cohne Kinghorn, P.C., represents TW Medical Group while Ted F. Stokes, Esq., at Stokes Law, PLLC represents Taylor G. Wright. VBI VACCINES: Completes Sale to K2 HealthVentures ------------------------------------------------- VBI Vaccines Inc. announced on Jan. 3, 2025, that, in connection with its creditor protection proceedings under the Companies' Creditors Arrangement Act (Canada) and its previously announced sale and investment solicitation process, the Company completed the transactions contemplated by that certain amended and restated acquisition agreement made effective as of October 24, 2024 with K2 VBI Equity Trust, LLC, an affiliate of K2 HealthVentures LLC, one of the secured creditors of the Company and the lender under the debtor-in-possession financing implemented in connection with the CCAA proceedings. The Acquisition Agreement had been approved by the Ontario Superior Court of Justice (Commercial List) on October 31, 2024. Following completion of the Transaction, in accordance with the Acquisition Agreement and the Court order, all of the previously issued and outstanding common shares of the Company have been redeemed and cancelled without consideration, and VBI and certain of its subsidiaries, namely VBI Vaccines (Delaware) Inc. and Variation Biotechnologies Inc., became wholly-owned subsidiaries of the Purchaser and emerged from the CCAA proceedings. Furthermore, all of the directors and executive officers of VBI have resigned effective upon closing of the Transaction and have been replaced by nominees of K2. The Company wishes to thank each of them for their stewardship in guiding the Company through this corporate transition. For further details regarding the Transaction and the Acquisition Agreement, refer to the press release of the Company dated December 10, 2024, available on the Company's SEDAR+ profile at www.sedarplus.ca. The Company is expected to apply for an order to cease to be a reporting issuer under Canadian securities laws in all Canadian jurisdictions in which it is currently a reporting issuer. Upon ceasing to be a reporting issuer, the Company would no longer file any further continuous disclosure. The Company is also expected to deregister its common shares under the U.S. Securities Exchange Act of 1934, as amended. About VBI Vaccines VBI Vaccines Inc. -- www.vbivaccines.com -- is a biopharmaceutical company driven by immunology in the pursuit of powerful prevention and treatment of disease. Through its innovative approach to virus-like particles including a proprietary enveloped VLP platform technology and a proprietary mRNA-launched eVLP platform technology, VBI develops vaccine candidates that mimic the natural presentation of viruses, designed to elicit the innate power of the human immune system. VBI is committed to targeting and overcoming significant infectious diseases, including hepatitis B, coronaviruses, and cytomegalovirus (CMV), as well as aggressive cancers including glioblastoma (GBM). VBI is headquartered in Cambridge, Massachusetts, with research operations in Ottawa, Canada, and a research and manufacturing site in Rehovot, Israel. Iselin, New Jersey-based EisnerAmper LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 16, 2024, citing that the Company faces several risks, including but not limited to, uncertainties regarding the success of the development and commercialization of its products, demand and market acceptance of the Company's products, and reliance on major customers. The Company anticipates that it will continue to incur significant operating costs and losses in connection with the development and commercialization of its products. The Company has an accumulated deficit as of December 31, 2023 and cash outflows from operating activities for the year-ended December 31, 2023 and, as such, will require significant additional funds to conduct clinical and non-clinical trials, commercially launch its products, and achieve regulatory approvals that raise substantial doubt about its ability to continue as a going concern. VELSICOL CHEMICAL: Hires Hollingsworth LLP as Special Counsel ------------------------------------------------------------- Velsicol Chemical LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Hollingsworth LLP as special counsel. The scope of the services to be provided by Hollingsworth shall be advising the Debtors with respect to matters related to, or arising from, disputes with the District of Columbia, including but not limited to the Lawsuit and DC Proof of Claim. The firm will be paid at these rates: Matthew J. Malinowski $850 per hour Pete Chattrabhuti $580 per hour As disclosed in a court filing, Hollingsworth LLP is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Matthew J. Malinowski, Esq. Pete Chattrabhuti, Esq. Hollingsworth LLP 1350 I Street NW Washington, DC 20005 Tel: (202) 898-5800 Fax: (202) 682-1639 Email: mmalinowski@hollingsworthllp.com Email: pchattrabhuti@hollingsworthllp.com About Velsicol Chemical LLC Velsicol Chemical LLC is a technology company in the industrial intermediate chemicals industry serving the global polymer additives as well as flame retardant markets. Velsicol Chemical LLC and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Lead Case No. 23-12544) on Sep. 21, 2023. The petitions were signed by Timothy Horn as authorized representative of the Debtors. At the time of filing, Velsicol estimated $1 million to $10 million in assets and $10 million to $50 million in liabilities. Judge David D. Cleary oversees the case. Much Shelist PC, led by Jeffrey M. Schwartz, is the Debtors' counsel. GlassRatner Advisory & Capital Group, LLC, d/b/a B. Riley Advisory Services, is the financial advisor. VERTEX ENERGY: Bankruptcy Court Confirms 2nd Amended Chap. 11 Plan ------------------------------------------------------------------ Vertex Energy, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on December 20, 2024, the Bankruptcy Court entered its Order Confirming the Second Amended Joint Chapter 11 Plan of the Company and Its Debtor Affiliates. The Debtors expect that the effective date of the Plan will occur once all of the conditions precedent to the Plan have been satisfied. * Summary of Plan Although the Company is targeting occurrence of the Effective Date as soon as reasonably practicable, the Company can make no assurances as to when, or ultimately if, the Plan will become effective. The Plan provides that, among other things, on the Effective Date: -- each Holder of an Allowed DIP Claim (which shall include interest, fees, and all other amounts due and owing under the DIP Facility), except to the extent that a Holder of an Allowed DIP Claim agrees to less favorable treatment, and in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for each Allowed DIP Claim, shall receive on account of such Allowed DIP Claim, New Common Stock (on a pro rata basis along with Allowed Term Loan Claims); -- each Holder of an Allowed Term Loan Claim (or any designated affiliate, managed fund or account, or other designee) will receive, in full and final satisfaction of such Allowed Term Loan Claim, unless otherwise agreed to by such Holder, its pro rata share (calculated on account of unpaid DIP Claims and Allowed Term Loan Claims) of either (i) the New Common Stock, subject to dilution by both the Management Incentive Plan and the New Common Stock issued pursuant to the Exit Term Loan Facility, or (ii)(a) the New Common Stock, subject to dilution by both the Management Incentive Plan and the New Common Stock issued pursuant to the Exit Term Loan Facility and (b) the New Term Loan Facility, if any; -- each Holder of an Allowed General Unsecured Claim at Debtors other than the Company will receive, in full and final satisfaction of such claim, unless otherwise agreed to by such Holder, its pro rata share of the beneficial interests of the GUC Trust, entitling each respective Holder to its pro rata share of the GUC Trust Net Assets; -- each Holder of an Allowed Other General Unsecured Claim at the Company will receive, in full and final satisfaction of such claim, unless otherwise agreed to by such Holder, its pro rata share of the beneficial interests of the GUC Trust, entitling each respective Holder to its pro rata share of the GUC Trust Net Assets, after payment or satisfaction, as applicable, of all Allowed General Unsecured Claims at Debtors other than the Company; and -- each Holder of an Allowed 2027 Convertible Notes Claim will receive, in full and final satisfaction of such Allowed 2027 Convertible Notes Claim, unless otherwise agreed to by such Holder, its pro rata share of the GUC Trust, entitling each respective Holder to its pro rata share of the GUC Trust Net Assets, after payment or satisfaction, as applicable, of all Allowed General Unsecured Claims at Debtors other than the Company. Additional information regarding the classification and treatment of Claims and Interests can be found in Article III of the Plan. The Company cautions that trading in the common stock during the pendency of the Chapter 11 Cases is highly speculative and poses substantial risks. The Company does not currently anticipate that all senior creditors will be paid in full, and therefore does not expect that equityholders of the Company will receive any distribution under the Plan. If the Plan becomes effective, the common stock will be canceled, and therefore trading prices for the common stock may bear little or no relationship to the actual recovery, if any, by holders of the common stock in the Chapter 11 Cases. As of the Effective Date, the Reorganized Debtors do not expect to be subject to reporting requirements promulgated by the SEC. * Treatment of Equity Interests The Company has no preferred shares issued or outstanding and has 93,514,346 shares of common stock issued and outstanding as of December 26, 2024. On the Effective Date of the Plan, all existing Interests, including shares of common stock, in the Company will be canceled, released, and extinguished and will be of no further force or effect pursuant to the Plan. The New Common Stock is expected to be issued pursuant to the Plan without registration under the Securities Act of 1933, as amended, or any similar federal, state, or local law in reliance upon section 1145 of the Bankruptcy Code and Section 4(a)(2) of the Securities Act and Regulation D thereunder. The New Common Stock will not be listed on any national securities exchange as of the Effective Date. * Assets and Liabilities In the Company's most recent monthly operating reports filed with the Bankruptcy Court on December 23, 2024, the Company reported aggregated total assets of approximately $256.5 million and total liabilities of approximately $419.9 million as of November 30, 2024. This financial information has not been audited or reviewed by the Company's independent registered public accounting firm and may be subject to future reconciliation or adjustments. This information should not be viewed as indicative of future results. A full-text copy of the Form 8-K containing the Plan Confirmation Order is available at: https://tinyurl.com/3wnvsxr5 About Vertex Energy Vertex Energy, Inc., together with its subsidiaries, is an energy transition company and marketer of refined products and renewable fuels in Houston. Vertex Energy filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 24-90507) on Sept. 24, 2024, listing $772,368,000 in assets and $642,819,000 in liabilities. The petitions were signed by R. Seth Bullock as chief restructuring officer. Judge Christopher M. Lopez oversees the case. Jason G. Cohen, at Bracewell, LLP, is the Debtor's counsel. VH NUTRITION: Case Summary & 15 Unsecured Creditors --------------------------------------------------- Debtor: VH Nutrition, LLC 810 Fiero Lane, Suite 13 San Luis Obispo, CA 93401 Chapter 11 Petition Date: January 3, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-10005 Judge: Hon. Ronald A Clifford III Debtor's Counsel: William C. Beall, Esq. BEALL & BURKHARDT, APC 1114 State Street, Suite 200 Santa Barbara, CA 93101-6722 Tel: 805-966-6774 Fax: 805-963-5988 Email: will@beallandburkhardt.com Total Assets: $115,049 Total Liabilities: $1,243,098 The petition was signed by Drew Littlejohns as CEO. A full-text copy of the petition containing, among other items, a list of the Debtor's 15 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/Z2KZKYY/VH_Nutrition_LLC__cacbke-25-10005__0001.0.pdf?mcid=tGE4TAMA VH NUTRITION: Commences Subchapter V Bankruptcy Process ------------------------------------------------------- On January 3, 2025, VH Nutrition LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for 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. About VH Nutrition LLC VH Nutrition LLC is a limited liability company operating from San Luis Obispo, California. VH Nutrition LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10005) on January 3, 2025 In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Ronald A Clifford III handles the case. William C. Beall, Esq. of Beall And Burkhardt, Apc represents the Debtor as counsel. WELLPATH HOLDINGS: Committee Taps Proskauer Rose as Co-Counsel -------------------------------------------------------------- The official committee of unsecured creditors of Wellpath Holdings, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Proskauer Rose LLP as co-counsel. The firm's services include: a. advising the Committee in connection with its powers and duties under the Bankruptcy Code, the Bankruptcy Rules, and the Bankruptcy Local Rules; b. assisting and advising the Committee in its consultation with the Debtors relative to the administration of these chapter 11 cases; c. attending meetings and negotiating with the representatives of the Debtors and other parties-in-interest; d. assisting and advising the Committee in its examination and analysis of the conduct of the Debtors' affairs; e. assisting and advising the Committee in connection with any sale of the Debtors' assets pursuant to section 363 of the Bankruptcy Code; f. providing lead counsel in assisting the Committee in the review, analysis, and negotiation of any chapter 11 plan(s) of reorganization or liquidation that may be filed and assisting the Committee in the review, analysis, and negotiation of the disclosure statement accompanying any such plan(s); g. appearing, as appropriate, before this Court, the appellate courts, and the U.S. Trustee, and protecting the interests of the Committee before those courts and before the U.S. Trustee; h. leading in the negotiations and revisions of the Debtors' proposed orders on various motions for relief, including the Debtors' request to obtain post petition financing, their request regarding the Debtors' cash management system, their motion seeking relief related to the Debtors' current and future insurance policies, the Debtors' proposed lease and contract rejection procedures, and the Debtors' proposed procedures for filing proofs of claim against the Debtors; i. leading in the analysis and investigation into potential infirmities with asserted security interests and liens; j. taking all necessary actions to protect and preserve the interests of the Committee, including: (i) possible prosecution of actions on its behalf; (ii) if appropriate, negotiations concerning all litigation in which the Debtors are involved; and (iii) if appropriate, review and analysis of claims filed against the Debtors' estates; k. generally preparing on behalf of the Committee all necessary motions, applications, answers, orders, reports, replies, responses, and papers in support of positions taken by the Committee; and l. performing all other necessary legal services in these chapter 11 cases. The firm will be paid at these rates: Partners $1,705 to $2,350 per hour Senior Counsel/Counsel $1,690 per hour Associates $1,045 to $1,560 per hour Paraprofessionals $385 to $485 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The following is provided in response to the request for additional information set forth in paragraph D.1 of the Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under 11 U.S.C. § 330 by Attorneys in Larger Chapter 11 Cases Effective as of November 1, 2013 (the "U.S. Trustee Fee Guidelines"): Question: Did the Firm agree to any variations from, or alternatives to, the Firm's standard billing arrangements for this engagement? Answer: No. Proskauer did not agree to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement. Question: Do any of the Firm professionals included in this engagement vary their rate based on the geographical location of the Debtors' chapter 11 cases? Answer: No rate for any Proskauer professionals included in this engagement varies based on the geographic location of the bankruptcy case. Question: If the Firm has represented the client in the 12 months prepetition, disclose the Firm's billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. Answer: Proskauer did not represent any member of the Committee in the Debtors' chapter 11 cases prior to its retention by the Committee. Question: Has your client approved the Firm's budget and staffing plan, and if so, for what budget period? Answer: Proskauer expects to develop a prospective budget and staffing plan to reasonably comply with the U.S. Trustee's request for information and additional disclosures, to which Proskauer reserves all rights. Ehud Barak, a partner at Proskauer Rose LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Ehud Barak, Esq. PROSKAUER ROSE LLP Eleven Times Square New York, NY 10036 Telephone: (212) 969-3000 Facsimile: (212) 969-2900 Email: ebarak@proskauer.com About Wellpath Holdings, Inc. 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: Stay in Ryan v. State of Michigan Case Lifted ---------------------------------------------------------------- Magistrate Judge Curtis Ivy, Jr. of the United States District Court for the Eastern District of Michigan lifted the stay entered on November 21, 2024, without prejudice as to defendants in the case captioned as SEAN MICHAEL RYAN, Plaintiff, v. STATE OF MICHIGAN, et al., Defendants, Case No. 22-13002 (E.D. Mich.). Plaintiff Sean Ryan filed this prisoner civil rights case without the assistance of counsel on December 12, 2022. The Court granted Plaintiff in forma pauperis status. Following an Order from the Court dismissing all but four individual defendants for misjoinder and for failure to state a claim, Plaintiff filed an amended complaint as of right on October 16, 2023. After screening the amended complaint, Judge Ivy recommended the dismissal of all defendants except for those individuals who treated or interacted with Plaintiff during his incarceration at the G. Robert Cotton Correctional facility from April 9, 2019 through March 12, 2022. He further recommended the dismissal of all claims except for Plaintiff's Eighth Amendment deliberate indifference claim. The Court adopted the magistrate judge's Report & Recommendation on May 2, 2024. Eight of the nine remaining individual defendants -- Scott Holmes, Dion Wright, Alexis Rogers, Melanie Bale, Victoria Hallet, Frederick Herro, Kristin Austin, and Charles Jamsen -- now move to revoke Plaintiff's IFP status for failure to satisfy the "imminent danger" exception to the "three strikes" rule under 28 U.S.C. Sec. 1915(g). Defendants also move to dismiss the complaint for violating Rules 8 and 12(b)(6) of the Federal Rules of Civil Procedure. In response to the Defendants' motions, Plaintiff initially requested sanctions against Defendants Herro, Bale, Rogers, and their counsel. Plaintiff did not make a similar request regarding the remaining movants. The Court denies the motions to revoke Plaintiff's IFP status. And the Court orders Plaintiff to file an amended complaint consistent with the instructions in this Order, denies Defendants' motions to dismiss as moot, denies Plaintiff's motion to supplement as moot, and denies Plaintiff's request for sanctions. The Court acknowledges recent developments in In re Wellpath Holdings, Inc., No. 24-90533 (Bankr. S.D. Tex. Nov. 14, 2024). Defendants filed a notice of stay on November 18, 2024, explaining that their employer, Wellpath, LLC, petitioned for bankruptcy relief under Chapter 11. Included in their filing is copy of the bankruptcy court's November 14, 2024, Order regarding Wellpath's obligations and granting other relief. They rely on the bankruptcy proceeding and that Order to say that the case is stayed as to all defendants. Generally, only actions against the debtor are stayed during the pendency of a bankruptcy proceeding. A stay can be extended to non-debtors such as Defendants "only if the debtor commences an adversary proceeding and obtains an extension of the stay and an injunction pursuant to Sec. 105(a) of the Bankruptcy Code." Based on the information provided to the Court in this case, there is no basis to enter a stay of proceedings as to the Defendants. The stay entered on November 21, 2024, is lifted without prejudice to Defendants seeking a stay with more support. A copy of the Court's decision is available at https://urlcurt.com/u?l=n0YiHz Wellpath Holdings, headquartered in Nashville, Tennessee, provides medical, dental, and behavioral health services to patients in local detention facilities, federal and state prisons and behavioral healthcare facilities. Wellpath is privately owned by H.I.G. Capital. WINESTEAD LLC: Seeks Continued Use of Cash Collateral Until June 30 ------------------------------------------------------------------- Winestead, LLC asked the U.S. Bankruptcy Court for the Central District of California, Riverside Division, for authority to continue using cash collateral until June 30. The company previously received final order, which approved the use of cash collateral until Jan. 31. The company requires the use of cash collateral to pay regular and necessary business expenses in accordance with its budget, with a 10% variance. First Bank, the U.S. Small Business Administration and the California Department of Tax and Fee Administration assert an interest in the company's cash collateral. Winestead obtained a $579,400 loan from First Bank and a $500,000 loan from the SBA, which are secured by substantially all of the company's assets. Meanwhile, the tax agency has a secured claim of $584,055 on account of unpaid sales tax. Winestead does not object to the granting of a replacement lien to creditors asserting a lien on the cash collateral used by the company. A hearing is set for Jan. 21. About Winestead LLC Winestead LLC -- https://www.orangecoastwinery.com -- is a restaurant known for offering great lunch, dinner and brunch. It conducts business under the name Wine Ranch Grill and Cellars. Winestead filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-16223) on October 17, 2024, with $100,001 to $500,000 in assets and $1 million to $10 million in liabilities. Judge Mark Houle oversees the case. The Debtor is represented by Robert B Rosenstein, Esq., at Rosenstein & Associates. WINTA ASSET: Seeks to Sell New York Property for $20-Mil. --------------------------------------------------------- Winta Asset Management LLC seeks permission from the U.S. Bankruptcy Court for the Southern District of New York, to sell its real property, located at 70 Broad Street, in New York. The Property, a historical landmark property as designated by the City of New York and formerly known as the American Bank Note Company Building, is a five-story mixed use office and residential building with approximately 23,000 square feet of office space and has been vacant for almost seven years. 70 Broad LLC, the direct 100% owner of the Debtor, sold the Property to the Debtor, and the Property was vacant at the time of the Debtor's acquisition. The Lender, Silverpeak Real Estate Finance LLC, has agreed to make a loan to the Debtor in the original principal amount of $15,000,000. As collateral security for the payment of the Note, the Debtor executed and delivered to Original Lender a Consolidated, Amended and Restated Mortgage, Assignment of Leases and Rents and Security Agreement dated as of April 29, 2015, pursuant to which the Debtor, among other things, granted to the Original Lender a security interest in the Property. The Original Lender executed an allonge to the Note, dated June 26, 2015, indorsed in favor of SPREF WH II LLC and delivered the Note, with the Interim Allonge affixed thereto to Interim Holder. By virtue of this delivery, the Original Lender transferred to Interim Holder all of its rights, title and interest in and to the Note and Interim Holder became the holder of the Note. Then, the Interim Holder executed an allonge to the Note, dated July, 2015 and indorsed in favor of Wilmington Trust, National Association, as Trustee for the Registered Holders of Wells Fargo Commercial Mortgage Trust 2015-NXS2, Commercial Mortgage Pass-Through Certificates, Series 2015-NXS2, and delivered the Note, with the Interim Allonge and Lender Allonge affixed thereto, to the Lender. By virtue of this delivery, Interim Holder transferred to the Lender all of its rights, title and interest in and to the Note and the Lender became the current holder of the Note. Due to a plethora of issues including the COVID-19 pandemic and a lack of tenants at the Property, the Debtor's cash flow was severely damaged which in turn caused it to default on the Mortgage and Note, which prompted the Lender to initiate a foreclosure action against the Debtor. The District Court appointed Ian V. Lagowitz by the District Court as the temporary receiver for the Property, which is currently vacant and the receiver is currently in possession. On May 6, 2024, judgment was entered in favor of the Lender and the Lender was awarded inter alia, $24,758,480.13, with the Property scheduled to be sold in one parcel at public auction to be scheduled shortly thereafter. The Debtor also has two independent managers appointed by its operating agreement, Michelle Dreyer and Benjamin Hancock, and the Debtor's also appointed a sole managing member appointed Ephraim Diamond as the chief restructuring officer of the Debtor. To preserve the Debtor's interest in the Property, Mr. Diamond authorized the Debtor to file for Chapter 11 bankruptcy protection in this Court on May 17, 2024. The Debtor says it had insufficient capital to renovate and lease out the building. In addition, the Debtor was unable to obtain refinancing or additional capital in amounts sufficient to satisfy, inter alia, the Lender debt. As of the petition date, the Debtor in its business judgment, determined that it is in the best interest of the Debtor and its creditors to, absent a timely refinance, market and sell the Property in its current, "as is" condition. The Debtor also asserted that the value of the Property would be maximized, absent refinancing, by a sale of the Property via auction or competitive sale process. The Debtor retains Northgate Realty Group as its real estate consultant and broker to either sell the Property at an auction or solicit and secure a commitment or commitments for a refinancing of the Property. The Debtor filed, inter alia, a Second Amended Plan of Liquidation, which contemplated a sale process for the Property, which specific bid procedures. The Bid Procedures provide, inter alia: -- for a minimum opening bid of $20,000,000; -- the right of the Lender to credit bid its entire claim; -- payment of a Buyer's Premium to the successful bidder; -- assumption of all outstanding title charges, real estate taxes and other administrative expenses of the Debtor in the event the Lender is the successful bidder; -- a bid deadline of December 6, 2024; and -- an auction sale, if necessary of December 13, 2024. In accordance with the Bid Procedures, bids were solicited by Northgate. The only bid received by Northgate was the credit bid of the Lender in the amount of $20,000,000 in accordance with the above stated Bid Procedures terms. On December 12, 2024, the Debtor filed a Report of Qualified Bid and Notice of Cancellation of Auction. On the same date, the Debtor has also filed the Declaration of Greg Corbin as to the Debtor's marketing efforts in connection with the Sale. On December 26, 2024, the Debtor filed the Declaration of Javier Cellejas as to Good Faith Purchaser Status of the Lender. The Debtor believes that the Bid Procedures promoted active bidding and elicited the best and highest offer available for the Property. The Bid Procedures allowed the Debtor to conduct the sale in a controlled, fair, and open fashion that encouraged participation by financially capable bidders to offer the best bids for the Property, and who can demonstrate the ability to close a transaction. About Winta Asset Management LLC Winta Asset is the owner of a mixed-use office and residential building located at 70 Broad Street, New York, New York valued at $16 million. Winta Asset Management LLC in New York, NY, filed its voluntary petition for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 24-10848) on May 17, 2024, listing $16,000,000 in assets and $24,168,362 in liabilities. Ephraim Diamond as chief restructuring officer, signed the petition. Judge Michael E Wiles oversees the case. DAVIDOFF HUTCHER & CITRON LLP serve as the Debtor's legal counsel. WISA TECHNOLOGIES: Signs Agreement to Acquire CompuSystems, Inc. ---------------------------------------------------------------- WiSA Technologies, Inc., which anticipates closing its acquisition of Datavault intellectual property and information technology assets of privately held Data Vault Holdings Inc. and changing its name to Datavault Inc. on or about Dec. 31, 2024, has entered into a Definitive Agreement to acquire privately held CompuSystems, Inc., a premier provider of registration, data analytics, and lead management services for live events. In 2025, CompuSystems' current management expects CSI to contribute between $13 million and $15 million in revenue and between $3 million and $4 million in EBITDA. Combined management hosted a conference call on Monday, December 30th at 11 am ET to discuss the transaction. "Building on the transformational process underway with our anticipated close of Datavault's assets, this strategic acquisition will leverage CSI's vast experience and depth in the events management business with the advanced capabilities of Datavault's ADIO platform," said Brett Moyer, CEO of WiSA Technologies. "Driving new revenue streams and gross margin expansion, we expect strong revenue and EBITDA contributions in 2025 from this acquisition." Nathaniel T. Bradley, Data Vault Holdings' CEO said, "In early December 2024, we announced we had embedded ADIO in CSI's M3 Expo Wallet App, with a planned roll out starting in January 2025. Recognizing the strengths and mutual advantages of this collaboration, WiSA entered into an agreement to acquire CSI. Bringing ADIO and CSI together in the same corporate family will uniquely provide WiSA with the advanced technology to deliver experiential audio tours and convert vast amounts of events data into Web 3.0 assets that we will ultimately monetize. For example, our ADIO crypto anchor and mobile market technology will be used to trigger user experiences on mobile devices. Our industry first and exceptionally patent protected vintage WiSA HD quality audio and holographic assisted virtual tours can now be unlocked in the scale of and professional management of CSI. Additional opportunities are expected as we succeed in further monetizing CSI's events data through our proprietary and cyber secure Information Data Exchange." "This strategic transaction marks a major milestone, as we look forward to becoming part of a dynamic public company that leverages CompuSystems' 48-year history as an international leader in the global events industry," said Mark LoGiurato, CEO of CompuSystems. "In combination with newly consolidated Datavault's ADIO technology, we will rapidly scale our M3 platform and broaden our capabilities to provide even greater value to event organizers with sophisticated new features and advanced Web 3.0 data analytics." The financial terms of the transaction were not disclosed. Closing is subject to customary conditions and is anticipated to occur on or about Jan. 31, 2025. About WiSA Technologies WiSA Technologies Inc. -- http://www.wisatechnologies.com-- is a provider of immersive, wireless sound technology for intelligent devices and next-generation home entertainment systems. Working with leading CE brands and manufacturers such as Harman International, a division of Samsung; LG; Hisense; TCL; Bang & Olufsen; Platin Audio; and others, the company delivers immersive wireless sound experiences for high-definition content, including movies and video, music, sports, gaming/esports, and more. WiSA Technologies, Inc. is a founding member of WiSA (the Wireless Speaker and Audio Association) whose mission is to define wireless audio interoperability standards as well as work with leading consumer electronics companies, technology providers, retailers, and ecosystem partners to evangelize and market spatial audio technologies driven by WiSA Technologies, Inc. The company is headquartered in Beaverton, OR with sales teams in Taiwan, China, Japan, Korea, and California. San Jose, California-based BPM LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 1, 2024, citing that the Company's recurring losses from operations, net capital deficiency, available cash and cash used in operations raise substantial doubt about its ability to continue as a going concern. YOUNG MEN'S CHRISTIAN: Unsecureds Will Get 100% over 24 Months -------------------------------------------------------------- Young Men's Christian Association of Metropolitan Huntsville, Alabama, filed with the U.S. Bankruptcy Court for the Northern District of Alabama a Disclosure Statement describing Chapter 11 Plan dated December 20, 2024. The Debtor is a nonprofit corporation as described in Section 501(c)(3) of the Internal Revenue Code. The Debtor is a member of the National Council of Young Men's Christian Associations of the United States of America and operates as the Heart of the Valley YMCA. The Debtor operates YMCA programs, such as childcare, teen leadership development programs, after school programs, youth sports, day and specialty camp programs, fitness classes, aquatics, health screening, and numerous volunteer opportunities. The Debtor also operates three Childhood Education Centers: Northwest, Downtown, and Southeast, as well as an overnight camp at YMCA Camp Cha-La-Kee on Lake Guntersville. In addition, the Debtor conducts a variety of programs at other locations under arrangements with third parties. Pre-petition the Debtor owned certain real property and improvements located 4380 Cha La Kee Road, Guntersville, Alabama (hereinafter, "Property"). The Property consists of 62 acres of land with partial frontage along lake Guntersville in Marshall County, Alabama. The Debtor acquired this property in 1963 from the Tennessee Valley Authority. Since that time the Debtor operated this Property as Camp Cha La Kee. The Debtor decided to stop operating Camp Cha La Kee and sell the Property. On October 4, 2024, Debtor filed its Motion to Sell Certain Property Free and Clear of Liens, Claims, Interests, and Encumbrances (the "Motion to Sell"), as well as its Motion to Employ SVN AVAT Realty, LLC, as broker, and Andrew Agee, as real estate agent, to market and sell the Property. The Debtor later amended this motion to employ on October 29, 2024, and the Court Approved the employment of the commercial real estate agent and brokerage on November 5, 2024. On November 6, 2024, the Court entered its Order Approving (I) Sale Process and Bid Procedures, (II) Scheduling an Auction, (III) Granting Bid Protection, and (IV) Setting Final Hearing on Debtor's Motion to Sell. This Order stipulated the sale procedures and scheduled the auction for the Property to take place on January 3, 2025. A final hearing to approve the sale is set for January 6, 2025. The Plan will be funded primarily the Net Operating Income of the Debtor as well as from the sale proceeds from certain real properties owned by the Debtor. The Plan provides for distributions on account of secured claims and unsecured claims (including claims arising from the rejection of leases or contracts), priority claims and administrative claims, in priority of payment set forth under the Bankruptcy Code. Class 4 consists of all allowed general unsecured claims. Claims in Class 4 are impaired. The total amount of unsecured claims exceeds $702,000. The claims in Class 4 are of every kind and nature including claims arising from tax penalties, amounts due on account, corporate guarantees, the rejection of executory contracts, unexpired lease claims, deficiencies on secured claims, contract damage claims or open account claims and damages arising from all obligations including, but not limited to, all liquidated, contingent, and unliquidated claims relating to any liability asserted against the Debtor based on any theory of liability whether on contract, tort, or equity. It also includes any debt which is filed as a priority or secured claim but, which is allowed as an unsecured claim by the Bankruptcy Court. Holders of general unsecured claims without priority, and which are Allowed Claims, shall be paid from the Debtor's future Net Monthly Income, in monthly installments commencing thirty days after the Effective Date and continuing for a period of twenty-four consecutive months. No Holders of Allowed General Unsecured Claims shall be entitled to receive post-petition interest on its Allowed Claim. This Class will receive a distribution of 100% of their allowed claims. The primary sources for funding the Plan are the net operating income that the Debtor expects to earn over the life of the Plan as well as the sale proceeds from the sale of certain real and personal properties. A full-text copy of the Disclosure Statement dated December 20, 2024 is available at https://urlcurt.com/u?l=S49lTS from PacerMonitor.com at no charge. Counsel to the Debtor: Kevin D. Heard, Esq. Angela S. Ary, Esq. HEARD, ARY & DAURO, LLC 303 Williams Avenue, Suite 921 Huntsville, AL 35801 Phone: (256) 535-0817 Email: kheard@heardlaw.com aary@heardlaw.com About The Young Men's Christian Association The Young Men's Christian Association of Metropolitan Huntsville, Alabama is a non-profit organization that offers programs to support the needs of a growing and diverse communities including child care, health & fitness, teen programs and community programs. Young Men's Christian Association of Metropolitan Huntsville, Alabama filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ala. Case No, 24-81638) on August 23, 2024, listing $10 million to $50 million in both assets and liabilities. The petition was signed by Jeff Collen as interim chief executive officer. Judge Clifton R Jessup Jr. presides over the case. Kevin D. Heard, Esq., at HEARD, ARY & DAURO, LLC, is the Debtor's counsel. [*] Commercial Chapter 11 Filings Up 20% in Calendar Year 2024 -------------------------------------------------------------- Commercial chapter 11 filings increased 20 percent in calendar year 2024 to 7,879 from 6,583 filings the previous year, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. Overall commercial filings increased 17 percent to 30,009 from the 25,731 registered the previous year. Small business subchapter V elections within chapter 11 also experienced a substantial increase in calendar year 2024, as the 2,381 filings represented a 32 percent increase from the 1,808 recorded in 2023. Note that the pace of subchapter V and consumer chapter 13 filing increases slowed after enhanced debt limits for both filing categories expired on June 21, 2024. Total bankruptcy filings in calendar year 2024 were 508,758, a 14 percent increase from the 445,286 registered during calendar year 2023. While representing a substantial year-over-year increase, total bankruptcy filings remain lower than the pre-pandemic total of 757,816 recorded in CY2019. "As anticipated, we saw a steady increase in bankruptcy filings throughout 2024 and expect that growth trend to continue throughout 2025," said Michael Hunter, Vice President of Epiq AACER. "If the current trend continues, new bankruptcy filings will return to pre-pandemic normalized volumes over the next 24-30 months. Modest rises in household debt and elevated delinquency rates reveal the stress households are experiencing and are reflected in the steady increased bankruptcy filing trends." Overall consumer filing totals for calendar year 2024 were 478,749, representing a 14 percent increase from the 419,555 consumer filings the previous year. Consumer chapter 7 filings increased 19 percent to 288,968 in CY 2024 from the previous year's total of 242,919. The 188,934 consumer chapter 13 bankruptcy filings during calendar year 2024 registered a 7 percent increase over 2023's total of 175,977. "The continued increase in bankruptcies over the past year reflects the growing list of economic challenges faced by consumers and businesses," said ABI Executive Director Amy Quackenboss. "Rising interest rates, inflation, increasing geopolitical tensions and shifts in post-pandemic consumer spending have more struggling businesses and families turning to bankruptcy for a financial fresh start from their growing debt loads." Total bankruptcy filings were 38,121 in December 2024, an 11 percent increase from the December 2023 total of 34,486. The consumer bankruptcy filing total of 35,793 also represented an 11 percent increase from the 32,391 consumer filings in December 2023. Consumer chapter 7 filings were 21,918 in December 2024, up 17 percent from the 18,718 chapter 7 filings in December 2023, while consumer chapter 13s only increased 1 percent to 13,804 in December from 13,629 the previous year. Overall commercial filings also increased 11 percent in December 2024, as the 2,328 filings were up from the 2,095 commercial filings registered in December 2023. The 553 commercial chapter 11 filings in December represented an 8 percent increase from the 510 chapter 11 filings in December 2023. Subchapter V elections within chapter 11 increased slightly, as the 188 filings in December 2024 were up 2 percent over the 185 filings recorded in December 2023. ABI has partnered with Epiq AACER to provide the most current bankruptcy filing data for analysts, researchers, and members of the news media. Epiq AACER is the leading provider of data, technology, and services for companies operating in the business of bankruptcy. Its Bankruptcy Analytics subscription service provides on-demand access to the industry's most dynamic bankruptcy data, updated daily. Learn more at https://bankruptcy.epiqglobal.com/analytics. About Epiq Epiq, a global technology-enabled services leader to the legal industry and corporations, takes on large-scale, increasingly complex tasks for corporate counsel, law firms, and business professionals with efficiency, clarity, and confidence. Clients rely on Epiq to streamline the administration of business operations, class action, and mass tort, court reporting, eDiscovery, regulatory, compliance, restructuring, and bankruptcy matters. Epiq subject-matter experts and technologies create efficiency through expertise and deliver confidence to high-performing clients around the world. Learn more at www.epiqglobal.com. About ABI ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 10,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abi.org. For additional conference information, visit http://www.abi.org/calendar-of-events. [*] Companies' Default Rates Hit Record Highs in 2024 ----------------------------------------------------- Jill R. Shah of Bloomberg News reports that according to a recent JPMorgan Chase & Co. report, risky companies set a record in 2024 by defaulting multiple times. Strategists led by Nelson Jantzen noted that repeat offenders made up about 35% of the year's defaults and distressed exchanges, marking a historical peak. At the same time, the leveraged loan default rate reached its highest level in nearly four years. Higher interest rates throughout the year put significant pressure on the balance sheets of lower-rated firms. This impact was especially severe in the leveraged loan market, where borrowers face rising costs due to floating-rate debt. [*] Famous Retail Chains That Closed Stores in Sacramento in 2024 ----------------------------------------------------------------- Marcus D. Smith of The Sacramento Bee reports that retail faced significant challenges in 2024, as several major chains permanently shut down their Sacramento-area locations. Many businesses closed stores due to financial difficulties, such as bankruptcy and competition from online retailers, while others cited reduced foot traffic. Among the closures was the only Goodwill discount store in Citrus Heights after 20 years of operation, along with distribution centers for Rite Aid and Amazon. Here are 10 prominent retail chains that announced store closures in the Sacramento area in 2024 and the reasons behind their decisions: * American Freight In November, American Freight Appliances and Furniture revealed it would be shutting down all 328 of its locations, including two in the Sacramento area. The local stores, which offered discounted furniture and home appliances, were located at 1200 Blumenfeld Drive in Sacramento and 10379 Folsom Blvd. in Rancho Cordova. The closures were part of a restructuring plan by Franchise Group, Inc., the parent company of American Freight, after filing for Chapter 11 bankruptcy. * Big Lots In 2024, Big Lots shut down more than 400 stores across the U.S., including several in the Sacramento area. The Ohio-based discount retailer filed for Chapter 11 bankruptcy in September as it planned a sale to private equity firm Nexus Capital Management, but the deal ultimately fell through. In December, Big Lots announced plans to start going-out-of-business sales at all remaining locations to protect its estate's value. The following Sacramento-area stores were closed in 2024: 8700 La Riviera Drive, Sacramento; 6630 Valley Hi Drive, Sacramento; 8539 Elk Grove Blvd., Elk Grove; 3615 Elkhorn Blvd., North Highlands; 9500 Greenback Lane, Folsom; and 52 West Court St., Woodland. Additional closures occurred in Lodi, Placerville, and Vacaville. * Banana Republic Banana Republic closed one of its three Sacramento-area locations in January, shutting down its store at the Westfield Galleria in Roseville. The only remaining Banana Republic store in Sacramento is located at Arden Fair mall, with an additional Banana Republic Factory store at Folsom Premium Outlets. * CVS At least two CVS Pharmacy locations closed in the Sacramento area in 2024. In January, CVS closed its store at 3338 Arden Way in Sacramento's Arden Watt Marketplace, with services moved to the nearby CVS at 2636 Marconi Ave. In February, the company shut down its location inside Target at 1707 J St. in midtown Sacramento, transferring pharmacy prescriptions to the CVS on Folsom Boulevard in East Sacramento. CVS spokeswoman Amy Thibault explained that store closures are often due to "local market dynamics, population shifts, store density, and other geographic access points." * Forever 21 In March, Forever 21 shut down its store at the Westfield Galleria in Roseville after 15 years. The Los Angeles-based fast-fashion retailer filed for bankruptcy in 2019 to restructure its brand. Forever 21 continues to operate stores at Sacramento's Arden Fair mall and Folsom Premium Outlets. * Grocery Outlet In April, Grocery Outlet, a discount supermarket chain, closed its location at 3431 Watt Ave. in Arden Arcade. In a social media post, store representatives stated, "Sadly, we’re closing our doors at this location soon, but there's still time for you to save," though they did not provide a reason for the closure. They thanked the community for their support during the store's operation. Other Grocery Outlet locations in the area, including those in North Highlands and Sacramento, remain open. * LL Flooring LL Flooring revealed plans to close 94 locations nationwide, including a store at 8777 Elk Grove Blvd. in Elk Grove, after filing for bankruptcy in August. Originally founded as Lumber Liquidators, the Virginia-based flooring retailer is known as "the country’s leading specialty retailer of hard-surface flooring." LL Flooring CEO Charles Tyson stated that filing for bankruptcy was the "best path forward" to provide the company with "financial flexibility." * Party City Party City, North America's largest party retailer, is going out of business after 40 years due to severe financial difficulties. CEO Barry Litwin informed employees on December 20 that the company would close over 800 locations. All six Party City stores in the Sacramento area are shutting down, including those at 1703 Arden Way in Sacramento, 7440 Laguna Blvd. Suite 104 in Elk Grove, 6302 Sunrise Blvd. in Citrus Heights, 1386 East Main St. in Woodland, 6748 Stanford Ranch Road in Roseville, and 2780 East Bidwell St. Suite 100 in Folsom. An employee at the Folsom location confirmed to The Sacramento Bee that the store will close by the end of February. * Walgreens In 2024, Walgreens closed several stores in the Sacramento region, including locations at 6199 Sunrise Blvd. in Citrus Heights, 6819 Watt Ave. in North Highlands, 840 El Camino Ave. in Sacramento, and 4220 Missouri Flat Road in Placerville. Walgreens' parent company, Walgreens Boots Alliance, revealed in October that it plans to shut down around 1,200 more locations over the next three years due to declining prescription drug payments and the rise of online competitors. This includes more than 500 closures in 2025. According to the Sacramento Business Journal, stores at 1401 Broadway near Tower Cafe and 7155 24th St. near Florin Road in Sacramento are expected to close in January, along with a store in Cameron Park. * Walmart The Walmart Neighborhood Market located at 4080 Douglas Blvd. in Granite Bay closed in April due to its inability to meet financial goals. Walmart communications director Alicia Anger explained, "This decision was not made lightly and followed a careful and thoughtful review process." She added, "While our core business remains strong, this store hasn't performed as well as we hoped." Walmart Neighborhood Markets offer groceries, a pharmacy, and other goods in a smaller format compared to Walmart supercenters and discount stores. [*] Greenberg Expands London Restructuring, Arbitration Practices ----------------------------------------------------------------- Global law firm Greenberg Traurig, LLP has reinforced its commitment to growth in the London market by welcoming two lawyers, Restructuring & Insolvency Shareholder Aaron Harlow and International Arbitration Of Counsel Michael Cottrell. "Aaron and Michael are both highly skilled lawyers who strengthen the firm's global capabilities in two key practice areas: our top-tier Restructuring & Bankruptcy Practice, which comprises over 120 lawyers across 20 markets, and our International Arbitration & Litigation Practice, which is supported by more than 800 litigators globally," Greenberg Traurig Executive Chairman Richard A. Rosenbaum said. "These strategic hires are central to building an unparalleled legal team in London in a focused manner and highlight our dedication to supporting clients in the UK and globally." Harlow, who joins from Shoosmiths, is experienced in advising clients including banks, asset-based lenders, insolvency practitioners, and company directors in connection with all aspects of corporate insolvency. His sector-specific knowledge spans financial services, retail, and hospitality and leisure, with a strong track record of advising in high-profile administrations, company voluntary arrangements, and restructuring plans, including in relation to Wilko, Monsoon Accessorise, Cath Kidston, Coast, Karen Millen, Lendy, Wellesley Finance, ASA Resource Group Plc and the Great Annual Savings Company. Cottrell represents international clients and states in commercial and investment treaty arbitrations. While his practice encompasses a range of sectors, he has a particular focus on disputes in the infrastructure and energy sectors, with experience as advocate in large-scale complex arbitration proceedings. A skilled arbitration practitioner, Cottrell advises clients at both the pre-dispute phase and at the outset of formal dispute proceedings, and is experienced in acting for clients under various institutional rules, including ICC, UNCITRAL, LCIA, HKIAC, and ad hoc arbitrations, with seats and governing laws in both civil and common law jurisdictions. In addition to his commercial arbitration experience, Cottrell's practice encompasses investor-state dispute settlement, particularly where claims have arisen as a result of conflict and civil unrest. He also focuses on sanctions-related disputes and issues of state immunity. John Houghton, chair of the firm's London Finance & Restructuring Practice and co-vice chair of its Global Restructuring & Bankruptcy Practice, said, "Aaron's extensive experience in corporate insolvency perfectly complements our existing capabilities, positioning us as a leading global advisor for complex distress situations. We now offer comprehensive services across distressed and special situation lending, mainstream restructuring, and formal insolvencies. Together with Luke Lado, who joined in 2023, bringing experience in direct lending and leverage finance, we are well-placed to deliver unparalleled support to clients navigating challenging financial situations." Harlow added, "I look forward to working with my new London colleagues and those in Greenberg Traurig's wider European and global network. The firm's sustained growth trajectory and its platform of global resources create unique opportunities for my practice and our clients." The addition of Cottrell also strengthens the firm's International Arbitration team, following the recent arrival of three new shareholders, Jason Hambury, Gurmukh Riyat, and Clea Bigelow-Nuttall. "Michael's skillset and experience further enhances our ability to represent clients involved in some of the world's largest and most complex disputes, particularly in infrastructure and energy," said Masoud Zabeti, co-chair of the Global Litigation Practice. "His appointment also underscores our commitment to serving our clients' interests globally in top-tier international arbitration." About Greenberg Traurig Greenberg Traurig, LLP has more than 2750 attorneys in 48 locations in the United States, Europe and the Middle East, Latin America, and Asia. The firm is a 2024 BTI "Leading Edge Law Firm" for delivering on client expectations for the future and is consistently among the top firms on the Am Law Global 100 and NLJ 500. Greenberg Traurig is Mansfield Rule Certified Plus by The Diversity Lab. The firm is recognized for powering its U.S. offices with 100% renewable energy as certified by the Center for Resource Solutions Green-e(R) Energy program and is a member of the U.S. EPA's Green Power Partnership Program. The firm is known for its philanthropic giving, innovation, diversity, and pro bono. Web: http://www.gtlaw.com. [*] U.S. Biggest Bankruptcies in 2024 ------------------------------------- Jay Caruso of FOXBusiness reports on the biggest bankruptcy filings in 2024. Big Lots, Spirit Airlines, and Red Lobster highlighted some of the biggest bankruptcies the past 2024. In 2024, several prominent U.S. companies filed for bankruptcy protection, grappling with mounting financial pressures. While some sought restructuring to remain operational, others announced widespread closures to avoid liquidation. The retail sector was hardest hit, but the restaurant industry and even one airline were not spared, according to FOXBusiness. Retail outlets were the hardest hit. However, several restaurant chains were impacted, and one airline as showcased below: * Spirit Airlines The budget airline filed for Chapter 11 bankruptcy protection in November, facing over $1 billion in looming debt payments and accumulating more than $2.5 billion in losses since 2020. Spirit faced challenges such as decreased ridership during the pandemic, competition from the more significant carriers, and most significantly, a blocked merger with JetBlue. Despite the filing, Spirit continues to operate, as customers are allow to book flights and take advantage of frequent flier points. * Big Lots The discount retailer, with more than 1,300 locations, filed for bankruptcy protection in September. With sales in decline and rising debt that reached $3.1 billion, the store initially announced it would close approximately 545 stores. The company later made the announcement that, due to a failed deal with the private equity firm, Nexus Capital, it would close all remaining 963 locations. However, on December 27th, the company announced a deal with Gordon Brothers Retail Partners LLC that would avert the closure of the potential closing of all other locations. There are not yet any details about which locations would remain open and the deal still requires approval from a bankruptcy judge. * Red Lobster The seafood chain, which opened its first location in Lakeland, Florida in 1968, filed for chapter 11 bankruptcy protection in May. The company had significant financial challenges, including higher food costs, higher wages, and rising commercial rents. Food prices also stalled traffic as many more people decided to cook at home. Some analysts also pointed to Red Lobster's "endless shrimp" deal, in which customers could eat as much shrimp as they wanted for only $20. A report in the Los Angeles Times talked to a woman who boasted of eating 108 shrimp during a four-hour meal. "I think the distinction between something like an Olive Garden with endless breadsticks and Red Lobster with bottomless shrimp is that shrimp is like an entree whereas breadsticks are more of a side," Jim Salera, a research analyst at Stephens focused on restaurants and packaged food and beverages, told FOX Business. "The goal with any type of deal like that is you bring in consumers, and then you either add incremental purchases to the ticket, whether it's alcohol or, you know, appetizers, things like that expand the ticket." "You already have a small profit margin," Salera said. "You can very easily go beyond that when you're attracting consumers who are just looking to have that one item or engage with that one offering and not kind of branching out across the menu." [] Tony Grant Joins A&G as Senior Managing Director --------------------------------------------------- Responding to the surge in demand for strategic approaches to real estate among both healthy and distressed operators across all sectors, A&G Real Estate Partners has tapped industry veteran Tony Grant as Senior Managing Director. "We are thrilled to add Tony to our management team," said A&G Co-President Andy Graiser. "Tony's broad business experience, real estate acumen, strong negotiating skills and collaborative approach to project-management will enhance our full-service solutions and deliver industry-leading results at a time when real estate strategy is at the forefront for our clients." Mr. Grant, who is based in Ann Arbor, Michigan, has negotiated more than $500 million in lease savings over the course of his more than 20-year career. The 45-year-old began working with A&G as a Senior Consultant with the onset of the pandemic in 2020. His client engagements with A&G have included Big Lots, Rite Aid, Party City, GNC, Guitar Center, Chico's, Christmas Tree Shops/CTS, David's Bridal, West Marine, Equinox/Blink Fitness, 24-Hour Fitness, TooJay's and McNellie's Restaurant Group. "Tony's outstanding leadership and relationship-building skills were apparent from the very start," said A&G Co-President Emilio Amendola. "In addition to delivering results that consistently outpace our clients' expectations, Tony has shown an impressive ability to garner the respect of both clients and landlords." Mr. Grant's key areas of expertise include negotiations for dispositions, restructurings and mitigations of leased and fee-owned real estate, both in and out of bankruptcy court. He has orchestrated numerous new store locations, lease terminations, relocations, excess land givebacks and space downsizings or expansions. "Importantly, Tony is well-versed in managing expansions on behalf of growth-minded retail and restaurant companies via retrofits, relocations and new-site development," Mr. Graiser said. Prior to joining A&G, Mr. Grant's projects involved a Who's Who of operators in categories such as retail, restaurant/hospitality and fitness/entertainment. An example is his work on behalf of Borders Group, Inc., where he was responsible for the winddown of real estate and operations for both Borders and Waldenbooks, as well as the sale of certain overseas assets. In addition, he has held several executive-level positions in retail and manufacturing, including serving as a member of the corporate development team at Owens Corning in Toledo, Ohio, where he focused on all aspects of global projects centering on acquisitions, divestitures and corporate strategy. The Michigan native is an entrepreneur who has owned breweries, restaurants, a bakery and various other businesses and real estate. He holds an MBA in corporate finance and accounting from Michigan State University (MSU), as well as a BS in electrical engineering from MSU, where he was an offensive lineman and long snapper on the Spartans varsity football team. An avid outdoorsman, Mr. Grant enjoys spending time in the woods, on a lake or playing sports with his wife and two young daughters. "I'm incredibly excited to continue my work with A&G in a more formal role that will allow me to branch into business-development and project-management while maintaining my role in the trenches in deal-making and negotiations," Mr. Grant said. "A&G is the premier firm in strategic real estate consulting services, and I'm proud to be a part of the team." ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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