/raid1/www/Hosts/bankrupt/TCR_Public/250113.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 13, 2025, Vol. 29, No. 12
Headlines
2108 E. MISSION: Seeks Chapter 11 Bankruptcy Protection
303 HIGHLINE: Appointment of Chapter 11 Trustee Sought
3120 THE BANK: Commences Subchapter V Bankruptcy Proceeding
ACCURIDE CORP: KKR Income Marks $5.5MM Loan at 40% off
AIMCO APARTMENT: Egan-Jones Retains BB+ Senior Unsecured Ratings
AIR INDUSTRIES: Gets $5.9M Contract for F-5/T-38 Aircraft Actuators
ALL CRAFT MARINE: Case Summary & 20 Top Unsecured Creditors
ALL CRAFT MARINE: Voluntary Chapter 11 Case Summary
ALL SAFE: Jolene Wee of JW Infinity Named Subchapter V Trustee
AMELIOM IT: Seeks to Sell John Deere, Jeep Vehicles
AMERICAN DREAM: Property Sale Proceeds to Fund Plan Payments
AMERICAN MARICULTURE: Files Chapter 11 Bankruptcy in Florida
AMERIFIRST FINANCIAL: Creditors Made to Wait for Fees Payment
APPLIED DNA: Sabby Volatility Holds 9.9% Equity Stake
APS HOLDINGS: Voluntary Chapter 11 Case Summary
ARCADIA BIOSCIENCES: Sabby Volatility Holds 4.9% Equity Stake
ARTIFICIAL INTELLIGENCE: Unit Welcomes Steve Danelon as President
ASHLAND LLC: Egan-Jones Retains BB+ Senior Unsecured Ratings
ASSETTA ENTERPRISES: Given 2-Month Extension to Use Cash Collateral
AUTO BUFFY: Case Summary & 10 Unsecured Creditors
AY PHASE II: DBD to Sell 100% Class B Interests on January 27
B.A.S.S. & M.: 812 Chicago Lots Up for Bankruptcy Sale by March 7
BAXTER INTL: Egan-Jones Hikes Sr. Unsec. Ratings to BB+
BEAUX EQUITIES: Case Summary & Eight Unsecured Creditors
BELLTOWN FARMS: Gets Interim OK to Use Cash Collateral Until Feb 28
BEST BUILD: Seeks Bankruptcy Protection in New York
BIG LOTS: Acquired by Gordon Brothers, Prevented Mass Layoffs
BIG LOTS: Closes Sale to Gordon Brothers Retail Partners
BIG LOTS: Has Deal to Keep Stores From Closing
BIOXCEL THERAPEUTICS: Amends Employment Agreements for 3 Executives
BISHOP OF OAKLAND: Files Amendment to Disclosure Statement
BLACKBERRY LIMITED: Egan-Jones Retains CCC Sr. Unsecured Ratings
BLUM HOLDINGS: Board Amends Series V Preferred Stock Certificate
BLUM HOLDINGS: Executes $800K Amended Note with Douglas Rosenberg
BOBEL ELECTRIC: M. Colette Gibbons Named Subchapter V Trustee
BOTAS SANTA: Kevin Neiman Named Subchapter V Trustee
CAESARS ENTERTAINMENT: Egan-Jones Retains CCC Sr. Unsec. Ratings
CAESARS HOLDINGS: Egan-Jones Retains CCC Senior Unsecured Ratings
CARPENTER TECHNOLOGY: Egan-Jones Hikes Sr. Unsecured Ratings to BB
CATHERINE ANDERSON: Seeks Bankruptcy Protection in Maryland
CATHETER PRECISION: Jenkins Family Holds 8.3% Equity Stake
CEMTREX INC: Posts $7.6-Mil. Net Loss in FY Ended Sept. 30
CENTRAL GARDEN: Egan-Jones Retains BB Senior Unsecured Ratings
CHABAD OF GRAMERCY: Case Summary & Six Unsecured Creditors
CITY BREWING: Moody's Cuts CFR to C & Alters Outlook to Negative
CLARIOS GLOBAL: Fitch Assigns 'B+' Rating on New First Lien Loans
CLARIOS GLOBAL: Moody's Cuts CFR to B2 & Senior Secured Debt to B1
CLASSICAL CHARTER: Moody's Affirms 'Ba2' Rating on Revenue Bonds
CM WIND: Egan-Jones Retains CCC+ Senior Unsecured Ratings
CMS ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings
COHERENT CORP: Egan-Jones Retains BB- Senior Unsecured Ratings
COMINAR REAL: DBRS Gives BB(high) to Senior Unsecured Debentures
COMMSCOPE HOLDING: Moody's Puts 'Caa2' CFR on Review for Upgrade
CREPERIE D AMOUR: Court Extends Use of Cash Collateral to Jan. 15
DEALER ACCESSORIES: Judy Wolf Weiker Named Subchapter V Trustee
DIABETES CARE: Starts Subchapter V Bankruptcy Protection
DIGITAL ALLY: Reports $5.47 Million Net Loss in Q3 2024
DIGITAL MEDIA: Trustee Objects to Plan Over 3rd Party Releases
DOMINO'S PIZZA: Egan-Jones Retains BB- Senior Unsecured Ratings
ELETSON HOLDINGS: Owners Seek Refund of Reed Smith's Ch. 11 Fees
EMERGENT BIOSOLUTIONS: U.S. DoD to Get $20M BioThrax Vaccine Supply
EMX ROYALTY: Completes 5M Share Normal Course Issuer Bid Program
ENGELMANN REAL: Seeks Chapter 11 Bankruptcy Protection in Nevada
ENTEGRIS INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
EPIC Y-GRADE: S&P Places 'B-' ICR on Watch Pos. on Acquisition
ETC SUNOCO: Egan-Jones Retains BB Senior Unsecured Ratings
FAMILY SOLUTIONS: Seeks to Extend Plan Exclusivity to March 4
FEYNMAN SCHOOL: Files Chapter 7 Bankruptcy in Maryland
FIDELITY NATIONAL: Egan-Jones Retains BB+ Senior Unsecured Ratings
FIRST MODE: U.S. Trustee Slams Stalking Horse Bid Protections
FLUOR CORP: Egan-Jones Hikes Senior Unsecured Ratings to BB
FREIRICH FOODS: Gets OK to Use Cash Collateral Until March 21
FTX TRADING: Disputes Completion of EU Asset Sale to Ex-Employees
GAVIN SPANIERMAN: Yann Geron Named Subchapter V Trustee
GEORGE WESTON: Egan-Jones Retains BB+ Senior Unsecured Ratings
GRAFTECH FINANCE: Moody's Appends 'LD' Designation to 'Caa1-PD' PDR
GROOMORE INC: Commences Subchapter V Bankruptcy Process
H6 COMPANY: Seeks to Sell Vehicles in a Private Sale
HELIX ENERGY: Egan-Jones Retains CCC+ Senior Unsecured Ratings
HIGHTOWER HOLDING: Moody's Rates New Secured Bank Loans 'B2'
HILTON WORLDWIDE: Egan-Jones Retains BB Senior Unsecured Ratings
HNO INTERNATIONAL: Inks Share Exchange Deal with CEO
HOUSTON TRUCK: Claims to be Paid From Cash Flow
IAMGOLD CORP: Egan-Jones Lowers Senior Unsecured Ratings to BB-
IBIO INC: Sabby Volatility Holds 0.2% Equity Stake
ILEARNINGENGINES INC: Seeks Court Okay to Use Lender's Cash
IN HOME PERSONAL: Court Extends Use Cash Collateral to March 4
IN2VATE L.L.C.: Voluntary Chapter 11 Case Summary
INDEPENDENCE CONTRACT: Gets Court Nod for Ch. 11 Plan w/ Releases
INNOVATIVE MEDTECH: Issues 6.5M Shares to CEO's Red Halo LLC
INTRUM AB: Creditor Lock-Up Poses Risk of Limiting Insurance Payout
IRIDIUM COMMUNICATIONS: Egan-Jones Retains B- Sr. Unsec. Ratings
IRON IQ: Case Summary & 18 Unsecured Creditors
IYA FOODS: Voluntary Chapter 11 Case Summary
J AND J WINDOWS: Commences Subchapter V Bankruptcy Proceeding
JACK IN THE BOX: Egan-Jones Retains B- Senior Unsecured Ratings
JACKSON COURT: Starts Subchapter V Bankruptcy Process in California
JDAMLKS FAMILY: To Sell Palmetto Bay Property to M. Diaz for $1.3MM
JEWELRY DESIGNER: Commences Subchapter V Bankruptcy Proceeding
JOANN INC: Loan Dips in Secondary Market Due to Liquidity Issues
JOANN INC: Plans Second Chapter 11 Bankruptcy Filing in a Year
JOANN INC: Plans to Close Several Stores in 2025
JUBILANT FLAME: Posts $14K Net Loss in Third Quarter
KAAS ENTERPRISES: Seeks Chapter 11 Bankruptcy Protection
KELVIN SPECIAL: Leon Jones Named Subchapter V Trustee
KEMPER CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
LEFEVER MATTSON: Seeks to Extend Plan Exclusivity to May 30
LEGGETT & PLATT: Egan-Jones Lowers Senior Unsecured Ratings to BB
LEXARIA BIOSCIENCE: Names J. Docherty as President, CSO
LI-CYCLE HOLDINGS: Koch Holds 4.17% Equity Stake
LILIUM N.V.: Faces Regular Insolvency Proceedings in Germany
MBIA INC: Egan-Jones Retains CCC- Senior Unsecured Ratings
MCGRAW-HILL EDUCATION: Moody's Hikes CFR to 'B2', Outlook Stable
METHANEX CORP: Egan-Jones Retains BB Senior Unsecured Ratings
MILAN SAI: Unsecureds to Get $2,500 per Month for 60 Months
MOORE HOLDINGS: Seeks Bankruptcy Protection in California
NAKED JUICE: S&P Downgrades ICR to 'CCC', Outlook Negative
NATURE COAST: ROI Funding & Litigation Recoveries to Fund Plan
NEP BROADCASTING: KKR Income Marks $7.4MM Loan at 16% off
NEW PHILADELPHIA: Case Summary & Four Unsecured Creditors
NEXTTRIP INC: Converts $1.75MM Notes Owed to CEO, Chair to Shares
NEXTTRIP INC: Inks $1.2MM Note with Series K Investors
NEXTTRIP INC: Inks Pact to Sell $500K Series M Shares to Investors
NEXTTRIP INC: Sells 297K Series J Preferred Shares to Investors
NORTH LIBERTY: Case Summary & 20 Largest Unsecured Creditors
NORTHLAND MANAGEMENT: Case Summary & Four Unsecured Creditors
NOVELIS CORP: Moody's Rates New Sr. Unsecured Notes Due 2030 'Ba3'
NUGEN GROUP: Case Summary & 20 Largest Unsecured Creditors
NUGEN GROUP: Sec. 341(a) Meeting of Creditors on February 10
OIL STATES: Egan-Jones Retains B- Senior Unsecured Ratings
ONDAS HOLDINGS: C&P Capital Holds 6.59% Equity Stake
OWENS-ILLINOIS GROUP: Egan-Jones Retains B+ Sr. Unsecured Ratings
PENN ENTERTAINMENT: Egan-Jones Retains B- Senior Unsecured Ratings
PLASTIC SUPPLIERS: To Hold Chapter 11 Auction on January 27
PORTERFIELD-SCHEID MANAGEMENT: Judge OKs $2.6MM Debt Refinancing
POST HOLDINGS: Egan-Jones Retains B Senior Unsecured Ratings
PRESPERSE CORP: Seeks to Extend Plan Exclusivity to July 7
PROOFPOINT INC: Moody's Affirms B2 CFR & Alters Outlook to Negative
PROSPECT MEDICAL: Considers Restructuring to Address Financial Woes
PURDUE PHARMA: Ex-McKinsey Senior Partner Admits Obstructing Probe
RAPID DRY: Seeks Chapter 11 Bankruptcy Protection in New York
RED RIVER: Opposes Cancer Claimants' Bid to Retain Brown Rudnick
RED RIVER: Talc Claimants Want Morelli Sanctioned for No-Show
REGENERON PHARMACEUTICALS: Faces Securities Class Action Lawsuit
REGIONAL WEST HEALTH: Fitch Alters Outlook on 'BB-' IDR to Stable
REITER BROTHERS: Seeks Bankruptcy Protection in Florida
RELMADA THERAPEUTICS: Appoints COO, Amends NEO Employment Contracts
RENOVARO INC: Board Appoints Maurice van Tilburg as GEDi Cube CEO
RENOVARO INC: To Acquire Predictive Oncology in All-Stock Deal
ROCKY MOUNTAIN: A. Harper Discloses Ownership of 1,911 Shares
SAFEMOON US: CEO Demands Explanation for 'Misleading' Reddit Post
SAM'S CRAB: Seeks Chapter 11 Bankruptcy Protection in Virginia
SAMPLE TILE: Seeks Chapter 11 Bankruptcy Protection in California
SAVANNAH HOLDINGS: Seeks Chapter 11 Bankruptcy Protection in N.Y.
SCIONHEALTH: KKR Income Marks $1.6MM Loan at 38% off
SI GROUP: KKR Income Marks $1.7MM Loan at 25% off
SI GROUP: KKR Income Marks $3.9MM Loan at 25% off
SONOCO PRODUCTS: Egan-Jones Retains BB+ Senior Unsecured Ratings
SOUTHERN POINT: Voluntary Chapter 11 Case Summary
STERICYCLE INC: Egan-Jones Retains B+ Senior Unsecured Ratings
SUN SHRIMP: Seeks Chapter 11 Bankruptcy Protection in Florida
SURF 9: Seeks Chapter 11 Bankruptcy Protection in New York
SURVWEST LLC: Seeks to Extend Plan Exclusivity to May 3
TAMID WATERLOO: Defaults on $40-Mil. Municipal Bonds
TAMPA BRASS: Case Summary & 20 Largest Unsecured Creditors
TD&H INC: To Sell Vehicles to AHJ Delivery for $227K
TELUS CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
THUNDER ROAD: Court Denies Bid to Use Cash Collateral
TILI LOGISTICS: Updates Unsecureds & Secured Claims Pay
TIMELINE CONSTRUCTION: Case Summary & 19 Unsecured Creditors
TONIX PHARMACEUTICALS: Sabby Volatility Holds 0.7% Equity Stake
TRANSALTA CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
UNLIMITED SOURCE: Gary Murphey Named Subchapter V Trustee
V.F. CORP: Egan-Jones Retains BB Senior Unsecured Ratings
VIGILANT HEALTH: Voluntary Chapter 11 Case Summary
VISUAL TECHNOLOGY: Brian Shapiro Named Subchapter V Trustee
WARREN, MN: S&P Withdraws 'BB+' Rating on General Obligation Bonds
WESCO INT'L: Egan-Jones Retains BB- Sr. Unsecured Ratings
WESTCHESTER COUNTY HEALTH: Moody's Confirms B1 Revenue Bond Ratings
WESTLAKE SURGICAL: Unsecureds Owed $29M to Recover 5%
WILL NOT SELL: Seeks Chapter 11 Bankruptcy Protection in Florida
WILL NOT SELL: Voluntary Chapter 11 Case Summary
WINDTREE THERAPEUTICS: Launches Strategy for Revenue Growth
WISA TECHNOLOGIES: Closes Purchase of Data Vault Holdings' Assets
WOM SA: Gets Court Approval to Raise $500MM to Exit US Bankruptcy
WORKSPORT LTD: Reflects on Strong 2024, Targets Major 2025 Growth
WYNNE TRANSPORTATION: Case Summary & 30 Top Unsecured Creditors
ZACHRY HOLDINGS: Plan Exclusivity Period Extended to March 17
ZACHRY HOLDINGS: Reaches $7-Mil. Settlement in WARN Act Case
[*] Tiger Group to Auction 50+ Late-Model Trucks & Trailers Jan. 16
[^] BOND PRICING: For the Week from January 6 to 10, 2024
*********
2108 E. MISSION: Seeks Chapter 11 Bankruptcy Protection
-------------------------------------------------------
On January 10, 2025, 2108 E. Mission LLC sought Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of Washington.
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 2108 E. Mission LLC
2108 E. Mission LLC is a limited liability company.
2108 E. Mission LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Wash. Case No. 25-00037) on January
10, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $100,000 and $500,000.
Honorable Bankruptcy Judge Frederick P. Corbit handles the case.
Patrick H. Brick, Esq. represents the Debtor as counsel.
303 HIGHLINE: Appointment of Chapter 11 Trustee Sought
------------------------------------------------------
William Harrington, the U.S. Trustee for Region 2, asked the U.S.
Bankruptcy Court for the Southern District of New York to appoint a
Chapter 11 trustee for 303 Highline Corp.
In a court filing, the U.S. Trustee raised the need to appoint an
independent trustee to manage the case, saying the company's
records are "woefully deficient."
303 Highline does not track its cash sales nor does it appear to
track or report its cash disbursements. The company's principal
Hyeon Jin Kim has also admitted that he does not abide by any
accounting practices or protocols in managing his business, does
not regularly take inventory, and has shown that he is incapable of
keeping track of the company's equipment and assets, according to
the U.S. Trustee.
Further, 303 Highline lacks adequate insurance and it is not clear
whether it is current on paying wages and associated NY State FICA
and worker's compensation taxes. These lapses in acceptable
business practices clearly rise to the level of "fraud, dishonesty,
incompetence, or gross mismanagement" that establishes cause under
Section 1104(a)(1) of the Bankruptcy Code, the U.S. Trustee said.
The U.S. Trustee argued that a Chapter 11 trustee is needed to
establish the company's books and records, corroborate and, if
necessary, correct the current composition of the company's assets
and liabilities, bring the company into compliance with the terms
of its loans and tax laws, retain proper insurance, reconsider its
workforce, and ultimately determine whether at this point, the
company's financial affairs are capable of financial rehabilitation
under Chapter 11, and whether a Chapter 11 plan can be confirmed.
The U.S. Trustee further argued that a cost-benefit analysis weighs
in favor of a Chapter 11 trustee as the company has no viable path
to reorganization under the continued oversight of a principal who
shows very little ability to manage its business in an honest
matter.
About 303 Highline
303 Highline Corp., doing business as Hudson Market, owns a grocery
store in New York.
303 Highline sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11409) on August 15,
2024, with $207,164 in assets and $2,161,207 in liabilities. Hyeon
Jin Kim, president of 303 Highline, signed the petition.
Judge Philip Bentley oversees the case.
Douglas Pick, Esq., at Pick & Zabicki, LLP represents the Debtor as
legal counsel.
3120 THE BANK: Commences Subchapter V Bankruptcy Proceeding
-----------------------------------------------------------
On January 6, 2025, 3120 The Bank LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Northern District of Georgia.
According to court filing, the Debtor reports $3,451,631 in debt
owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About 3120 The Bank LLC
3120 The Bank LLC holds an equitable interest in the property
located at 3120 Bankhead Highway, Atlanta, Georgia with the current
value of the Debtor's interest being $7 million.
3120 The Bank LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No.: 25-50153) on January 6,
2025. In its petition, the Debtor reports total assets of
$7,825,000 and total liabilities of $3,451,631.
Honorable Bankruptcy Judge Barbara Ellis-Monro handles the case.
Greg Bailey, Esq., at ATTY. GREG T. BAILEY & ASSOC represents the
Debtor as counsel.
ACCURIDE CORP: KKR Income Marks $5.5MM Loan at 40% off
------------------------------------------------------
KKR Income Opportunities Fund has marked its $5,564,000 loan
extended to Accuride Corp to market at $3,338 or 60% of the
outstanding amount, according to the KKR Income's Form N-CSRS for
the semi-annual period ended October 31, 2024, filed with the
Securities and Exchange Commission.
KKR Income is a participant in a First Lien Term Loan B to
Accuride Corp. The loan matures on October 19, 2026.
KKR Income was organized on March 17, 2011 as a statutory trust
under the laws of the State of Delaware. The Fund is a closed-end
registered management investment company, which commenced
operations on July 25, 2013. The Fund seeks to generate a high
level of current income, with a secondary objective of capital
appreciation. The Fund is diversified for purposes of the
Investment Company Act of 1940, as amended.
KKR Income is led by Rudy Pimentel, President; and Thomas Murphy,
Treasurer, Chief Accounting Officer & Chief Financial Officer. The
Fund can be reached through:
Rudy Pimentel
KKR Income Opportunities Fund
555 California Street, 50th Floor
San Francisco, CA 94104
Telephone: (415) 315-3620
- and -
Lori Hoffman
KKR Credit Advisors (US) LLC
555 California Street, 50th Floor
San Francisco, CA 94104
Telephone: (415) 315-3620
Accuride Corporation and its affiliates are a global leader in
steel and aluminum wheels and wheel-end components and assemblies,
supplying innovative products to over 1,000 customers in the
commercial vehicles, passenger cars, agriculture, construction and
industrial equipment markets.
AIMCO APARTMENT: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on December 31, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Aimco Apartment Investment and Management
Company.
Headquartered in Denver, Colorado, Aimco Apartment Investment and
Management Company operates as a real estate investment trust.
AIR INDUSTRIES: Gets $5.9M Contract for F-5/T-38 Aircraft Actuators
-------------------------------------------------------------------
Air Industries Group announced January 8, 2025, that it has
received a contract worth $5.9 million for flight control
assemblies (actuators) for the US Air Force F-5/T-38 aircraft.
Lou Melluzzo, chief executive officer of Air Industries Group
commented: "The F-5/T-38 aircraft is a long-established Air Force
aircraft platform. Air Industries has not manufactured product for
this aircraft in many years. This award continues to expand our
current portfolio.
"Increasing our actuation business has been a major initiative at
Air Industries, and to support this effort, last year we built a
new actuation assembly and testing cell in our Bay Shore, NY
facility. Anything that moves something from point "A" to point "B"
on an aircraft requires an actuator, and whether it is pneumatic,
hydraulic or electric, we strive to be the supplier of choice for
this commodity. The unique skill set that we have developed for
landing gear translates well to the manufacture of actuators, as
every retractable gear incorporates actuation.
"We continue to market these capabilities aggressively with both
legacy and new clients, and this award deepens our relationship
with a major defense prime contractor. It also checks three
strategic boxes: It expands our portfolio of active aircraft
platforms, supports our initiative to increase aftermarket
business, and substantially increases our actuation backlog."
About Air Industries
Air Industries Group (NYSE American: AIRI) is a manufacturer of
precision components and assemblies for large aerospace and defense
prime contractors. Its products include landing gears, flight
controls, engine mounts and components for aircraft jet engines,
ground turbines and other complex machines. Whether it is a small
individual component or complete assembly, its high quality and
extremely reliable products are used in mission critical operations
that are essential for the safety of military personnel and
civilians.
Saddle Brook, New Jersey-based Marcum LLP, the Company's auditor
since 2008, issued a "going concern" qualification in its report
dated April 15, 2024. The auditor emphasizes that for the period
ending March 31, 2024, the Company was not in compliance with the
financial covenants required under the terms of its current credit
facility, and it is reasonably possible that the Company will not
receive a waiver and may fail to meet these financial covenants in
future periods. The Company is required to maintain a collection
account with its lender into which substantially all of the
Company's cash receipts are remitted. If the Company's lender were
to cease lending and keep the funds remitted to the collection
account, the Company would lack the funds to continue its
operations. Failure to receive a waiver or meet the financial
covenants in future periods raise substantial doubt about the
Company's ability to continue as a going concern.
ALL CRAFT MARINE: Case Summary & 20 Top Unsecured Creditors
-----------------------------------------------------------
Debtor: All Craft Marine, L.L.C.
d/b/a Century Boats
40047 County Road 54 East
Zephyrhills, FL 33540
Chapter 11 Petition Date: January 10, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00130
Judge: Hon. Roberta A Colton
Debtor's Counsel: Daniel R. Fogarty, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
110 E. Madison St., Suite 200
Tampa, FL 33602
Tel: (813) 229-0144
E-mail: dfogarty@srbp.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Lloyd R. Sorenson, Manager of Sorfam
Capital Fund, LLC, Manager of the Debtor.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/3N3E4IY/All_Craft_Marine_LLC__flmbke-25-00130__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/3CAJUDQ/All_Craft_Marine_LLC__flmbke-25-00130__0001.0.pdf?mcid=tGE4TAMA
ALL CRAFT MARINE: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: All Craft Marine Holdings, LLC
40047 County Road 54 East
Zephyrhills, FL 33540
Chapter 11 Petition Date: January 10, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00129
Judge: Hon. Roberta A Colton
Debtor's Counsel: Daniel R. Fogarty, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
110 E. Madison St.
Suite 200
Tampa, FL 33602
Tel: (813) 229-0144
Email: dfogarty@srbp.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Lloyd R. Sorenson, Manager of Sorfam
Capital Fund, LLC, Manager.
The Debtor indicated in the petition it has no unsecured
creditors.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/2YRPHIY/All_Craft_Marine_Holdings_LLC__flmbke-25-00129__0001.0.pdf?mcid=tGE4TAMA
ALL SAFE: Jolene Wee of JW Infinity Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Region 2 appointed Jolene Wee of JW Infinity
Consulting, LLC as Subchapter V trustee for All Safe Fire Sprinkler
Systems Inc.
Ms. Wee will be compensated at $640 per hour for work performed in
2024. In addition, the Subchapter V trustee will receive
reimbursement for work-related expenses incurred.
Ms. Wee declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jolene E. Wee
JW Infinity Consulting, LLC
447 Broadway 2nd Fl #502
New York, NY 10013
Telephone: (929) 502-7715
Facsimile: (646) 810-3989
Email: jwee@jw-infinity.com
About All Safe Fire Sprinkler Systems
All Safe Fire Sprinkler Systems, Inc. is based in Elmsford, N.Y.,
and operates as a fire sprinkler systems installation and
maintenance provider.
All Safe Fire Sprinkler Systems filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
25-22004) on January 3, 2025. In its petition, the Debtor reported
$500,000 to $1 million in both assets and liabilities.
Judge Sean H. Lane handles the case.
Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP represents the
Debtor as legal counsel.
AMELIOM IT: Seeks to Sell John Deere, Jeep Vehicles
---------------------------------------------------
Ameliom IT, LLC and its subsidiaries seek permission from the U.S.
Bankruptcy Court for the Western District of Texas, San Antonio
Division, to sell its personal property.
Eric Terry was appointed as the Trustee of the Debtor's bankruptcy
case.
The Debtor is a Texas Limited Liability Company formed in 2020. The
entity is owned by Ameliom Holdings, LP, a holding company which is
owned primarily by Brian L. Adams, the president and operator of
each debtor entity.
The Debtor's Personal Property are comprised of:
--Interest in 2019 John Deere 318G and implements with the value of
$30,000
--Interest in 2022 Jeep Wrangler JL with $80,000
The Debtor has filed contemporaneously an Expedited Motion to
provide adequate protection, proposing to grant replacement liens
to Encore Bank to sell vehicles in order ot pay adequate protection
to Encore.
The Debtor seeks permission to sell its interest in the vehicles
using the funds to provide adequate protection payments to the
Debtor's only secured lender, Encore.
The Debtor asserts that its operations have not generated
sufficient cash flow to make monthly adequate protection payments
to Encore, and allowing the sale of the vehicles would provide the
Debtor with enough cash to make adequate protection payments
pending confirmation of a plan.
The Debtor's representative has secured a buyer for the Tractor in
a cash sale of $25,000, which the Debtor's representative believes
this is the highest and best offer possible under the circumstances
and is well within the range of what the Tractor should sell for.
The Debtor also seeks permission to sell the Jeep. Although Debtor
does not presently have a buyer for the Jeep, Debtor's
representative believes it should sell for more than $60,000 in
less than 2 months.
The Debtor proposes to sell the Jeep by soliciting offers from
dealers in the area and obtaining approval from Encore Bank for the
best selling price which would enable closing the sale within 60
days.
The Debtor’s representative does not believe there will be any
tax consequences as a result of the sale contemplated herein.
The Debtor proposes to use the net sales proceeds from the sale of
the Vehicles to provide adequate protection payments to Encore
Bank.
About s Ameliom IT, LLC
Ameliom IT, LLC, a company in Bulverde, Texas, provides computer
systems design and related services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Texas Case No. 24-51148) on June 20,
2024, with $339,700 in assets and $1,986,557 in liabilities as of
May 14, 2024. Eric Terry serves as Subchapter V trustee.
Judge Craig A. Gargotta presides over the case.
H. Anthony Hervol, Esq., at the Law Office of H. Anthony Hervol
represents the Debtor as bankruptcy counsel.
AMERICAN DREAM: Property Sale Proceeds to Fund Plan Payments
------------------------------------------------------------
American Dream Land Development of Colorado LLC filed with the U.S.
Bankruptcy Court for the District of Colorado a Small Business Plan
of Liquidation dated January 3, 2025.
American Dream is a Colorado limited liability company that
purchases and develops real property.
On the Petition Date, American Dream owned four pieces of real
property: a four-plex located at 3561-3567 Baltimore Avenue;
Pueblo, CO ("Baltimore"); a four-plex located at 9 Castle Royal
drive; Pueblo, CO ("Castle"); and two pieces of vacant land located
at 363 Springmont Drive, Pueblo West, CO and 375 Springmont Drive,
Pueblo West, CO respectively (collectively the "Vacant Land").
US Bank Trust National Association is the secured creditor on both
Baltimore and Castle. Prior to the Petition Date, US Bank initiated
foreclosure proceedings against both parcels of real property. The
bankruptcy case was filed to stay the pending foreclosure sales.
The Debtor asserts both Baltimore and Castle contain equity. By
this Plan, the Debtor seeks to sell Castle and Baltimore and use
the proceeds from the sale to satisfy all of its outstanding
obligations in full.
Class 7 consists of those unsecured creditors of Debtor who hold
Allowed Claims that were either scheduled by Debtor as undisputed,
or subject to timely proofs of claim to which Debtor does not
successfully object. The Debtor does not believe any general
unsecured creditors exist. This Class is unimpaired.
To the extent any general unsecured creditors are allowed, they
will be paid in full at the closing of Castle or Baltimore,
whichever sells first, and to the extent the sale nets sufficient
net proceeds to pay the claims ahead of Class 7 first. In the event
the sale of Castle and Baltimore do not net sufficient net proceeds
to pay allowed Class 7 claims in full, the Debtor shall sell the
Vacant Land within 18-months of the Effective Date and will use the
net proceeds from the sale of the Vacant Land to pay allowed Class
7 claims in full.
Class 8 consists of Equity Interest Holders. Upon payment of all
classes in full, any remaining net proceeds shall be distributed to
Debtor's Equity holders. In the event the sale of Baltimore and
Castle are sufficient to pay all allowed claims in full, equity
shall retain all interests in the Debtor, including title to the
Vacant Land.
This is a Liquidating Plan. In lieu of paying the administrative
expenses of sales by a Chapter 7 Trustee, the Debtor's Plan
provides for the sale of properties quickly, the use of those
proceeds to pay creditors in full, and in such a way that gives
equity the best opportunity to recover funds and/or property after
the claims against the Debtor are paid in full.
A full-text copy of the Liquidating Plan dated January 3, 2025 is
available at https://urlcurt.com/u?l=Bjk9MR from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Jonathan M. Dickey, Esq.
Kutner Brinen Dickey Riley, PC
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Telephone: (303) 832-2910
Email: jmd@kutnerlaw.com
About American Dream Land Development of Colorado LLC
American Dream Land Development of Colorado LLC sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Col. Case No. 24-17308) on December 10, 2024. In the petition filed
by Yichen Yang, as sole member, the Debtor reports estimated assets
and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Joseph G. Rosania Jr. handles the case.
The Debtor is represented by Jonathan M. Dickey, Esq. at KUTNER
BRINEN DICKEY RILEY PC.
AMERICAN MARICULTURE: Files Chapter 11 Bankruptcy in Florida
------------------------------------------------------------
On January 8, 2025, American Mariculture Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Middle District of
Florida.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About American Mariculture Inc.
American Mariculture Inc. is a food production company based out of
9703 STRINGFELLOW RD, Saint James City, Florida.
American Mariculture Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla.Case No. 25-00022) on
January 8, 2025. In its petition, the Debtor reports estimated
assets between $1 million and $10 million and estimated liabilities
between $10 million and $50 million.
Honorable Bankruptcy Judge Caryl E. Delano handles the case.
Scott A. Stichter, Esq. of Stichter, Riedel, Blain & Postler, P.A.
represents the Debtor as counsel.
AMERIFIRST FINANCIAL: Creditors Made to Wait for Fees Payment
-------------------------------------------------------------
Vince Sullivan of Law360 Bankruptcy Authority reports that in the
Chapter 11 case of mortgage services company AmeriFirst Financial
Inc., a Delaware bankruptcy judge approved the professional fees
incurred by the official committee of unsecured creditors on
January 10, 2025. However, payment will be withheld until concerns
regarding the debtor's budget are addressed.
About AmeriFirst Financial
AmeriFirst Financial, Inc., is a mid-sized independent mortgage
company in Mesa, Ariz.
AmeriFirst and its affiliate Phoenix 1040, LLC, filed Chapter 11
petitions (Bankr. D. Del. Lead Case No. 23-11240) on Aug. 24, 2023.
In the petitions signed by T. Scott Avila, chief restructuring
officer, each Debtor disclosed between $50 million and $100 million
in both assets and liabilities.
Judge Thomas M. Horan oversees the cases.
The Debtors tapped Laura Davis Jones, Esq., at Pachulski Stang
Ziehl & Jones, LLP as bankruptcy counsel; and Paladin Management
Group, LLC as restructuring advisor. Omni Agent Solutions, Inc., is
the claims, noticing and administrative agent.
On Sept. 15, 2023, the Office of the United States Trustee
appointed an official committee of unsecured creditors. The
Committee tapped Morris, Nichols, Arsht & Tunnell LLP as its
counsel.
APPLIED DNA: Sabby Volatility Holds 9.9% Equity Stake
-----------------------------------------------------
Sabby Volatility Warrant Master Fund, Ltd., Sabby Management, LLC,
and Hal Mintz disclosed in a Schedule 13G filing with the U.S.
Securities and Exchange Commission that as of December 31, 2024,
they beneficially own 5,224,206 shares of Applied DNA Sciences
Inc.'s common stock, representing 9.9% of the Company's
outstanding shares of stock.
About Applied DNA Sciences
Applied DNA Sciences -- adnas.com -- is a biotechnology company
developing technologies to produce and detect deoxyribonucleic
acid
("DNA"). Using the polymerase chain reaction ("PCR") to enable
both the production and detection of DNA, the Company currently
operates in three primary business markets: (i) the enzymatic
manufacture of synthetic DNA for use in the production of nucleic
acid-based therapeutics and the development and sale of a
proprietary RNA polymerase ("RNAP") for use in the production of
mRNA therapeutics; (ii) the detection of DNA and RNA in molecular
diagnostics and genetic testing services; and (iii) the
manufacture
and detection of DNA for industrial supply chain security services.
APS HOLDINGS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: APS Holdings of FL, Inc.
d/b/a APS Windows & Doors
f/d/b/a/ Architectural Product Sales, Inc.
1711 W State Street
Tampa, FL 33606
Chapter 11 Petition Date: January 10, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00145
Judge: Hon. Roberta A Colton
Debtor's Counsel: Edward J. Peterson, Esq.
JOHNSON, POPE, BOKOR, RUPPEL & BURNS, LLP
400 N Ashley Dr. #3100
Tampa, FL 33602
Tel: 813-225-2500
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Peter G. Castro as president.
The Debtor failed to include a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/JH6ZM3Y/APS_Holdings_of_FL_Inc__flmbke-25-00145__0001.0.pdf?mcid=tGE4TAMA
ARCADIA BIOSCIENCES: Sabby Volatility Holds 4.9% Equity Stake
-------------------------------------------------------------
Sabby Volatility Warrant Master Fund, Ltd., Sabby Management, LLC,
and Hal Mintz disclosed in a Schedule 13G/A filing with the U.S.
Securities and Exchange Commission that as of December 31, 2024,
they beneficially own 68,111 shares of Arcadia Biosciences, Inc.'s
common stock, representing 4.9% of the Company's outstanding shares
of stocks.
About Arcadia
Headquartered in Dallas, Texas, Arcadia Biosciences, Inc. is a
producer and marketer of innovative, plant-based food and beverage
products. The Company has used non-genetically modified advanced
breeding techniques to develop these proprietary innovations which
it is now commercializing through the sales of seed and grain,
food
ingredients and products, trait licensing and royalty agreements.
The acquisition of the assets of Live Zola, LLC added coconut
water
to its portfolio of products.
In its Quarterly Report for the three months ended September 30,
2024 issued on November 12, 2024, Arcadia Biosciences said that
with cash and cash equivalents of $3.9 million, short-term
investments of $2.6 million and current note receivable of $1.8
million as of September 30, 2024, the Company believes that its
existing cash, cash equivalents and short-term investments will
not
be sufficient to meet its anticipated cash requirements for at
least the next 12-18 months from the issuance date of the
financial
statements, and thus raises substantial doubt about the Company's
ability to continue as a going concern.
As of September 30, 2024, the Company had $15.2 million in total
assets, $5.1 million in total liabilities, and $10.1 million in
total stockholders' equity.
ARTIFICIAL INTELLIGENCE: Unit Welcomes Steve Danelon as President
-----------------------------------------------------------------
Artificial Intelligence Technology Solutions, Inc., announced that
its subsidiary, Robotic Assistance Devices Residential, Inc.
(RAD-R), has appointed Steve Danelon as its president. This key
appointment underscores RAD-R's commitment to redefining
residential security with innovative, AI-driven solutions like the
recently launched RADCam.
Steve Danelon brings with him an illustrious 30-year career in the
security industry, including 22 years of leadership with Allied
Universal, where he oversaw Canadian sales and operations.
Following his tenure at Allied Universal, Steve founded Fortress
Solutions, a boutique residential security company that further
honed his expertise in protecting homes and families. Danelon has
been an avid supporter of AITX's transformative journey and has
eagerly followed its evolution in the security technology sector.
"Steve's extensive industry experience, proven leadership, and
entrepreneurial mindset make him the perfect leader to take RAD-R
to new heights," said Steve Reinharz, CEO and CTO of AITX and
RAD-R. "Having a leader of Steve's caliber strengthens our ability
to deliver groundbreaking residential security solutions, and I'm
thrilled to welcome him to the AITX and RAD family."
Danelon's decision to join RAD-R was influenced by his firsthand
experience with RAD's technology, particularly the RADCam, which he
sees as a game-changer for the residential security market. His
compensation package reflects RAD-R's focus on performance and
results, aligning his success with the Company's goals. This
strategic alignment ensures RAD-R is positioned to lead the
industry in innovative and accessible AI-powered residential
security solutions.
"I'm honored to join RAD-R and excited to contribute to its mission
of transforming residential security," said Steve Danelon. "The
technology that RAD has developed, particularly within RADCam, is
unlike anything I've seen in my career. I'm confident we'll
deliver unparalleled solutions to homeowners and redefine the
standard for residential security."
RAD-R, a wholly owned subsidiary of AITX, focuses on delivering
advanced AI-based solutions to the residential market, including
the revolutionary RADCam. Unlike traditional residential security
products, RAD-R's solutions emphasize meaningful interactions,
proactive response, and a reimagined approach to home safety.
About Artificial Intelligence Technology
Headquartered in Ferndale, Mich., Artificial Intelligence
Technology Solutions Inc. is an innovator in the delivery of
artificial intelligence-based solutions that empower organizations
to gain new insight, solve complex challenges, and fuel new
business ideas. Through its next-generation robotic product
offerings, AITX's RAD, RAD-R, RAD-M, and RAD-G companies help
organizations streamline operations, increase ROI, and strengthen
business. AITX technology improves the simplicity and economics of
patrolling and guard services, allowing experienced personnel to
focus on more strategic tasks. Customers augment the capabilities
of existing staff and gain higher levels of situational awareness,
all at drastically reduced costs. AITX solutions are well-suited
for use in multiple industries such as enterprises, government,
transportation, critical infrastructure, education, and
healthcare.
Deer Park, Illinois-based L J Soldinger Associates, LLC, the
Company's auditor since 2019, issued a "going concern"
qualification in its report dated May 9, 2024, citing that the
Company had a net loss of approximately $20.7 million, an
accumulated deficit of approximately $133.0 million, and
stockholders' deficit of approximately $40.2 million as of and for
the year ended Feb. 29, 2024, which raise substantial doubt about
its ability to continue as a going concern.
ASHLAND LLC: Egan-Jones Retains BB+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on December 2, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Ashland LLC. EJR also withdrew its rating on
commercial paper issued by the Company.
Headquartered in Wilmington, Delaware, Ashland LLC operates as a
specialty chemical company.
ASSETTA ENTERPRISES: Given 2-Month Extension to Use Cash Collateral
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts
extended Assetta Enterprises, Inc.'s authority to use cash
collateral from Jan. 10 to March 10.
The order signed by Judge Janet Bostwick authorized the company to
use cash collateral on an interim basis to pay the expenses set
forth in its budget, subject to a 10% variance in total expenses on
a monthly basis.
Brookline Bank and other creditors holding liens or security
interests in the assets of Assetta Enterprises were granted
replacement liens on post-petition assets of the same kind, type,
and nature as their pre-bankruptcy collateral, and any proceeds
thereof.
The next hearing is scheduled for March 5.
Brookline Bank can be reached through its counsel:
Raymond C. Pelote, Esq.
Pelote Law Group, P.C.
534 New State Highway
Raynham, MA 02767
Tel: (508) 301-4200
rpelote@pelotelaw.com
About Assetta Enterprises
Assetta Enterprises, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Mass. Case No.
24-11594) on August 7, 2024, with up to $50,000 in assets and up to
$1 million in liabilities.
Judge Janet E. Bostwick oversees the case.
The Debtor is represented by:
Laurel E. Bretta, Esq.
Bretta Law Advisors, P.C.
Tel: 781-395-1545
Email: bglaw@lbretta.com
AUTO BUFFY: Case Summary & 10 Unsecured Creditors
-------------------------------------------------
Debtor: Auto Buffy Inc.
f/k/a Air Springs Direct, Inc.
350 Winmeyer Ave., Suite B
Odenton, MD 21113
Business Description: The Debtor is an auto parts retailer
specializing in brake rotors, headlights,
quick struts, CV axles, mirrors, wipers,
motor oil, brake pads, wheel hubs, coil
springs, motor mounts, ignition coils, and
tail lights.
Chapter 11 Petition Date: January 10, 2025
Court: United States Bankruptcy Court
District of Maryland
Case No.: 25-10208
Judge: Hon. Michelle M Harner
Debtor's Counsel: Stephen A. Metz, Esq.
OFFIT KURMAN, P.A.
7501 Wisconsin Ave, Suite 1000W
Bethesda, MD 20814
Tel: 240-507-1723
Fax: 240-507-1735
Email: smetz@offitkurman.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Chetan Singh Chadha as president.
A full-text copy of the petition, which includes a list of the
Debtor's 10 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/6KAX2FQ/Auto_Buffy_Inc__mdbke-25-10208__0001.0.pdf?mcid=tGE4TAMA
AY PHASE II: DBD to Sell 100% Class B Interests on January 27
-------------------------------------------------------------
In accordance with applicable provisions of the Uniform Commercial
Code as enacted in New York, DBD AYB Funding II LLC, as
administrative agent for DBD AYB Funding II LLC and AYB Funding 200
LLC ("secured party") will sell 100% of the Class B limited
liability membership interests in AY Phase II Development Company
LLC, as more particularly described in that certain amended and
restated pledged and security agreement, dated June 17, 2015, by
and among secured party's predecessor-in-interest and AY Phase III
Mezzanine LLC ("collateral") to the highest qualified bidder at
public sale.
The public sale will take place on Jan. 27, 2024, at 4:30 p.m.,
both in person and remotely from the offices of Rosenberg & Estis
PC, 733 Third Avenue, New York 10017, with access afforded in
person and remotely via zoom or other web-based video conferencing
and telephonic conferencing program selected by secured party.
Secured party's understanding is that the principal assets of the
Class B limited liability membership interests in AY Phase II
Development Company LLC is the parcel of real property located on
the eastern blockfront of Vanderbilt Avenue between Atlantic Avenue
and Pacific Street in the Prospect Heights section of Brooklyn, New
York, identified as B9 and B10 located in Brooklyn, New York, and
more particularly known as the air rights parcels above Block 1121,
and the terra firm known as Lots 42 and 47, Block 1121 in Kings
County, New York, as such collateral is described in that certain
Schedule II to the mezzanine loan agreement dated as of June 17,
2015, by and among secured party's predecessor-in-interest and AY
Phase III Mezzanine LLC.
The sale will be conducted by Mannion Auctions LLC, by Matthew
Mannion.
Interested parties who would like additional information regarding
the sale must contact the agent for secured party, Nick Scribani of
Newmark at (212) 372-2113 or Nick.Scribani@nmrk.com.
Attorney for the secured party can be reached at:
Rosenberg & Estis PC
Attn: Eric S. Orenstein, Esq.
733 Third Avenue
New York, New York 10017
Tel: (212) 551-8438
Email: eorenstein@rosenbergestis.com
B.A.S.S. & M.: 812 Chicago Lots Up for Bankruptcy Sale by March 7
-----------------------------------------------------------------
Hilco Real Estate Sales announces March 7, 2025, as the qualifying
bid deadline for a portfolio of 812 land parcels located throughout
the West and South Side neighborhoods of Chicago, Illinois. This
offering provides buyers an opportunity to capitalize on one of the
largest land sales in Chicago's recent history.
This once-in-a-lifetime acquisition opportunity provides buyers
with the chance to purchase single sites, multiple plots or the
portfolio in its entirety. Ideal for builders, investors and
neighboring property owners, many of these development lots are set
along iconic streets, including Lake Street, Pulaski Road, State
Street, Ashland Avenue and LaSalle Street. The majority of these
parcels measure the standard Chicago City lot of 25'x125' with the
largest assemblage encompassing five adjacent addresses in the 5600
block of South State Street, making a total of 36,530+/- SF. Zoning
varies between residential, commercial and industrial providing
framework to support exciting mixed-use projects or housing
developments.
Chicago's West and South Side neighborhoods are emerging as prime
opportunities for investment, driven by affordability, strategic
city initiatives and proximity to the city center and public
transportation. These areas are transforming with increased
infrastructure investments and a growing influx of businesses.
Locational/geographic highlights include proximity to the United
Center, Obama Library, Garfield Park Conservatory as well as
immediate access to a variety of public transportation options,
including the planned CTA Red Line extension. With historical charm
and revitalization efforts driving growth, the West and South Sides
are in position for transformative development, offering long-term
potential for investors and enriching communities.
In recent years, Illinois has been proactive in addressing the need
for affordable and accessible housing to meet growing demand. On
December 11, 2024, Governor JB Pritzker signed an executive order
launching a statewide effort enlisting multiple state agencies to
explore how Illinois can accelerate plans to expand the supply and
access of housing for working families. Additionally, as part of an
ongoing commitment to lower housing costs, Governor Pritzker
announced the return of SmartBuy a program providing direct
monetary assistance to pay off student loan debt for those buying a
home in Illinois. First launched in December 2020, within six
months the SmartBuy program helped 631 individuals and families to
purchase a new home in Illinois. Together, these actions seek to
address the shortage of attainable homes for working families
across the state, as well as overall housing shortages that affect
renters and homebuyers alike.
The executive order creates an Illinois Director of Housing
Solutions, who will add key capacity to the State and will lead the
consideration of strategic planning for, and implementation of
innovative housing solutions to combat the housing crisis and
increase the number of attainable, middle-class homes and rental
options across the state for working Illinoisans and their
families. The Director will work in close consultation with the
Illinois Housing Development Authority (IHDA), the Illinois
Department of Commerce and Economic Opportunity (DCEO), and other
state agencies.
Launched in 2019, INVEST South/West is another city of Chicago
initiative that leverages $250 million in existing business
development and infrastructure funding from the Department of
Planning and Development (DPD) through programs to support
improvement projects that align with local priorities in 10 target
city neighborhoods.
Further, on December 16, tech giant, IBM, announced plans to
establish a major presence within the Illinois Quantum and
Microelectronics Park, or IQMP, on Chicago's South Side. With
proximity to several neighborhoods where the 812 parcels are
located, the state of Illinois has committed $700 million in tax
incentives, grants and other financial support to attract more tech
businesses like IBM to the Windy City. Speaking of IBM's plans to
develop the Illinois-based facility known as the National Quantum
Algorithm Center, CEO Arvind Krishna said he expects the company's
overall investment in the facility to be in the "tens of millions
or low hundreds of millions." Governor Pritzker added that, "Being
at the forefront of this industry holds the potential to deliver
long-term, broad-based economic prosperity for our people."
In line with these state and city assistance programs, Chicago's
West and South Side real estate markets are poised for significant
developments. These areas, previously overlooked, are seeing a
surge in mixed-use and affordable housing projects. The city has
committed significant resources to support and sustain
revitalization of these areas. Buyers can learn more about these
programs at www.ihdamortgage.org.
Stephen Madura, senior vice president at Hilco Real Estate Sales,
stated, "The areas where many of these lots are located have
historically been underserved. However, these neighborhoods are
steeped in Chicago history and offer a rich sense of community,
built on the backs of hardworking citizens that called these areas
'home' for generations."
Madura continued, "Now, it is time for these neighborhoods to rise
from the ashes. Revitalization is at the door. Governor Pritzker
has made the development of and access to affordable housing a
hallmark of his agenda/time in office. This confluence of state
supported economic and housing initiatives together with strong
housing demand make the sale of these 812 land sites perfectly
timed. Combine this timing with the transparency and certainty of
the bankruptcy sale and the sheer volume of parcels available, and
you truly have a once-in-a-lifetime acquisition opportunity for
developers, investors and end users."
The sale is subject to Bankruptcy Court Approval of the United
States Bankruptcy Court for the Northern District of Illinois
Eastern Division Chapter 11 Case No.: 24-bk-15381 | B.A.S.S & M.,
Inc. Bids must be received on or before the deadline of March 7 at
5:00 p.m. (CT) and must be submitted on the Asset Purchase
Agreement (APA) document available for review and download from
Hilco Real Estate Sale's website. Qualified Bidders will be
notified by March 12 by 12:00 p.m. (CT) with the auction scheduled
for March 19 at 12:00 p.m. (CT), if necessary.
Interested bidders should review the requirements in order to
participate in the bankruptcy sale process available on Hilco Real
Estate Sales' website. For further information, please contact
Stephen Madura at (847) 504-2478 or smadura@hilcoglobal.com, Joel
Schneider at (847) 436-7321 or jschneider@hilcoglobal.com, Michael
Kneifel at (847) 201-2322 or mkneifel@hilcoglobal.com or Henry Nash
at (847) 313-4796 or hnash@hilcoglobal.com.
For further information on the property, sale process, and terms or
to obtain access to due diligence documents, please visit
SouthSideChicagoLotSales.com or call (855) 298-4989.
About Hilco Real Estate Sales
Successfully positioning the real estate holdings within a
company's portfolio is a material component of establishing and
maintaining a strong financial foundation for long-term success. At
Hilco Real Estate Sales (HRE), a Hilco Global company
(HilcoGlobal.com), we advise and execute strategies to assist
clients seeking to optimize their real estate assets, improve cash
flow, maximize asset value and minimize liabilities and portfolio
risk. We help clients traverse complex transactions and
transitions, coordinating with internal and external networks and
constituents to navigate ever-challenging market environments.
The trusted, full-service HRE team has secured billions in value
for hundreds of clients over 20+ years. We are deeply experienced
in complex transactions including artful lease renegotiation,
multi-faceted sales structures, strategic asset management and
capital optimization. We understand the legal, financial and real
estate components of the process, all of which are vital to a
successful outcome. HRE can help identify the most viable options
and direction for a company and its real estate portfolio,
delivering impressive results in every situation.
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.
BAXTER INTL: Egan-Jones Hikes Sr. Unsec. Ratings to BB+
-------------------------------------------------------
Egan-Jones Ratings Company on December 26, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Baxter International Inc. to BB+ from BBB-.
Headquartered in Deerfield, Illinois, Baxter International Inc.
develops, manufactures, and markets products and technologies
related to hemophilia, immune disorders, infectious diseases,
kidney disease, trauma and other chronic and acute medical
conditions.
BEAUX EQUITIES: Case Summary & Eight Unsecured Creditors
--------------------------------------------------------
Debtor: Beaux Equities LLC
5409 18th Ave
Brooklyn, NY 11204
Business Description: The Debtor is a lessor of residential
buildings and dwellings.
Chapter 11 Petition Date: January 9, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-40119
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Avrum J. Rosen, Esq.
LAW OFFICES OF AVRUM J. ROSEN, PLLC
38 New St
Huntington, NY 11743-3327
Tel: 631-423-8527
Fax: 631-423-4536
E-mail: arosen@ajrlawny.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by David Goldwasser as chief restructuring
officer.
A full-text copy of the petition, which includes a list of the
Debtor's eight unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/FJKDTAA/Beaux_Equities_LLC__nyebke-25-40119__0001.0.pdf?mcid=tGE4TAMA
BELLTOWN FARMS: Gets Interim OK to Use Cash Collateral Until Feb 28
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Nebraska issued an
interim order extending Belltown Farms GF OpCo, LLC's authority to
use the cash collateral of First Mid Bank & Trust, N.A. until Feb.
28.
The interim order signed by Judge Brian Kruse approved the use of
cash collateral for the period from the petition date to Feb. 28 to
pay the company's expenses in accordance with its budget.
The budget shows total projected expenses of $265,279 for January
and $176,188 for February.
Disbursements must not exceed 110% of the budgeted monthly expenses
without prior written stipulation with First Mid.
As adequate protection, First Mid Bank may withdraw $1 million from
Belltown's account and must apply the same to the bank's
pre-bankruptcy claim. In addition, Belltown must remit to First Mid
Bank any excess proceeds of future crop sales, or sales of any
other collateral securing the obligations owing to the bank.
First Mid Bank can be reached through its counsel:
Lisa M. Peters, Esq.
Kutak Rock, LLP
The Omaha Building
1650 Farnam Street
Omaha, NE 68102-2186
Phone: 402-346-6000
Fax: 402-346-1148
Email: lisa.peters@kutakrock.com
About Belltown Farms GF Opco
Belltown Farms GF Opco, LLC is engaged in the business of oilseed
and grain farming in Holstein, Neb.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Neb. Case No. 24-41171) on December 2,
2024, with $10 million to $50 million in both assets and
liabilities. Peter Tom Hill-Norton, authorized signatory, signed
the petition.
Judge Brian S. Kruse oversees the case.
The Debtor is represented by:
Patrick Raymond Turner
Turner Legal Group, LLC
Tel: 402-690-3675
Email: pturner@turnerlegalomaha.com
BEST BUILD: Seeks Bankruptcy Protection in New York
---------------------------------------------------
On January 9, 2025, Best Build 1 LLC 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.
About Best Build 1 LLC
Best Build 1 LLC is a Brooklyn-based real estate company operating
from 776 East 8th Street.
Best Build 1 LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-40109) on January 9,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Nancy Hershey Lord handles the case.
Vivian Sobers of Sobers Law, PLLC represents the Debtor as counsel.
BIG LOTS: Acquired by Gordon Brothers, Prevented Mass Layoffs
-------------------------------------------------------------
Gordon Brothers, the global asset experts, has completed the
purchase of Big Lots Inc. and facilitated the U.S. closeout
retailer's going concern sale, preserving the brand, keeping
hundreds of stores in operation and preventing thousands of
layoffs.
The purchase enables the transfer of Big Lots' assets, including
its stores, distribution centers and intellectual property, to
other retailers and companies, including Variety Wholesalers, Inc.
Gordon Brothers had previously agented a $200 million delayed draw
term loan providing liquidity in support of the company's
turnaround strategy and a $150 million debtor-in-possession term
loan for Big Lots' Chapter 11 bankruptcy proceedings in support of
the sale process.
"Having established a strong working partnership with Big Lots, we
executed seamlessly with all parties to provide the company and its
stakeholders a holistic, solutions-oriented sale and avoid a full
liquidation," said Kyle C. Shonak, Chief Transaction Officer, North
America at Gordon Brothers. "Throughout the restructuring, our firm
not only provided financing, but the guidance, expertise and
services needed to develop and lead a multi-faceted solution to
avoid layoffs and maximize value."
As part of this sale, Variety Wholesalers will acquire at least 200
stores that will operate under the Big Lots brand name and retain
the employees needed for continued operations. The retailer is also
exploring options for the associated distribution centers. Gordon
Brothers will provide Variety Wholesalers ongoing real estate
services to support the Big Lots go-forward footprint.
"Through our tireless efforts and close collaboration with Variety
Wholesalers, we are not only enabling the continued operation of
hundreds of Big Lots stores but also helping to keep employees in
their jobs," said Al Williams, Co-Head of North America Real Estate
Services at Gordon Brothers. "This collaboration highlights the
profound impact Gordon Brothers' seamlessly integrated services can
have on businesses and the communities they serve."
Additionally, the firm is providing inventory and brand solutions
while managing the closure of stores that will not go forward to
facilitate the transition to Variety Wholesalers.
"We greatly benefitted from Gordon Brothers' partnership, their
expertise and all-encompassing, tailor-made solution and look
forward to continuing to work with them as part of Big Lots'
transition," said Lisa Seigies, President and Chief Executive
Officer of Variety Wholesalers. "We are thrilled to have reached
this agreement and continue on our path forward that allows Big
Lots to preserve its legacy and continue to serve customers."
To learn more about Gordon Brothers, please visit:
https://www.gordonbrothers.com/. For real estate inquiries, please
contact the firm's Real Estate Services team at
biglotsrealestate@gordonbrothers.com.
About Gordon Brothers
Since 1903, Gordon Brothers has maximized liquidity through
realizable asset value by providing the people, expertise and
capital to solve business challenges. Our solutions-oriented
approach across asset services, lending, financing and trading
gives clients the insights, strategies and time to optimize asset
values throughout the business cycle. We work across the full
spectrum of assets globally with deep expertise in retail,
commercial, industrial, brands and real estate. We are
headquartered in Boston with over 30 offices across North America,
Europe, the Middle East and Africa, and Asia Pacific.
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value,
delivering bargains on everything for the home, including
furniture, decor, pantry and more.
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the Honorable
J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus Capital
Management LP.
PNC Bank, National Association, the DIP ABL Agent and Prepetition
ABL Agent, is represented by Choate, Hall & Stewart, LLP; and Blank
Rome, LLP. 1903P Loan Agent, LLC, the DIP Term Agent, and the
Prepetition Term Loan Agent are represented by Otterbourg, P.C. and
Richards, Layton & Finger, P.A.
BIG LOTS: Closes Sale to Gordon Brothers Retail Partners
--------------------------------------------------------
Big Lots, Inc. has successfully closed its previously announced
sale agreement with Gordon Brothers Retail Partners, LLC that will
enable Variety Wholesalers, Inc. to acquire between 200 and 400 Big
Lots stores, which it plans to operate under the Big Lots brand,
and up to two distribution centers. In addition, Variety
Wholesalers may employ Big Lots associates at the acquired stores
and distribution centers, as well as certain corporate associates
needed to support Big Lots' go- forward footprint.
Bruce Thorn, Big Lots' President and Chief Executive Officer, said,
"We are pleased to close this strategic transaction, which provides
a framework to preserve thousands of jobs, maximize value, and
maintain the Big Lots brand. We are working closely with the Gordon
Brothers and Variety Wholesalers teams on this transition. We are
grateful for the continued hard work and dedication of Big Lots
associates across the Company."
Kyle Shonak, Gordon Brothers' Chief Transaction Officer, said, "We
were proud to support Big Lots through the restructuring process to
enable the Company's continued operation, and look forward to
working with Variety Wholesalers to support Big Lots' go-forward
footprint."
Lisa Seigies, Variety Wholesalers' President and CEO, said,
"Variety is thrilled to officially welcome the Big Lots brand and
looks forward to operating hundreds of Big Lots store locations.
This strategic acquisition allows us to serve additional customers
and communities. We plan to combine the best of Variety with the
best of Big Lots and are excited about the possibilities ahead."
Court filings and other information related to the proceedings,
including how to file a proof of claim, are available on a separate
website administrated by the Company's claims agent, Kroll
Restructuring Administration LLC, at
https://cases.ra.kroll.com/biglots, by calling toll-free at (844)
217-1398 (or +1 (646) 809-2073 for calls originating outside of the
U.S. or Canada), or by sending an email to
biglotsinfo@ra.kroll.com.
Advisors
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company.
Riemer & Braunstein LLP acted as counsel and M3 Partners LP acted
as financial advisor to Gordon Brothers. Gordon Brothers' Real
Estate Services team will handle real estate matters for Gordon
Brothers as well as Variety Wholesalers. For real estate inquiries,
please contact Gordon Brothers' Real Estate Services team at
biglotsrealestate@gordonbrothers.com.
Cozen O'Connor is serving as legal counsel to Variety Wholesalers.
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value,
delivering bargains on everything for the home, including
furniture, decor, pantry and more.
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the Honorable
J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus Capital
Management LP.
PNC Bank, National Association, the DIP ABL Agent and Prepetition
ABL Agent, is represented by Choate, Hall & Stewart, LLP; and Blank
Rome, LLP. 1903P Loan Agent, LLC, the DIP Term Agent, and the
Prepetition Term Loan Agent are represented by Otterbourg, P.C. and
Richards, Layton & Finger, P.A.
BIG LOTS: Has Deal to Keep Stores From Closing
-----------------------------------------------
Angela Palermo of Idaho Statesman reports that Big Lots, a
well-known discount retailer facing declining sales and growing
losses, has secured an agreement that will keep hundreds of its
stores from closing, including a location in Meridian.
The company announced it has signed a sale agreement with Gordon
Brothers Retail Partners, a Boston investment firm that specializes
in liquidating and restructuring businesses. Under the deal,
Variety Wholesalers will acquire between 200 and 400 Big Lots
stores and up to two distribution centers.
Variety Wholesalers intends to operate the stores under the Big
Lots brand.
This announcement follows Big Lots' bankruptcy filing in September
2024 and comes after a prior plan to sell the company to Nexus
Capital Management fell through in December.
The company had already begun a liquidation sale at its Garden City
store in early November 2024. At the end of its 2023 fiscal year,
Big Lots had 1,392 locations but reported a nearly $500 million
loss as annual sales fell to $4.7 billion. With the Nexus deal
collapsing, Big Lots had been preparing for a full liquidation, but
the new agreement with Variety Wholesalers provides a lifeline.
Variety Wholesalers, based in North Carolina, operates more than
370 stores in the Southeast and Mid-Atlantic. While initial reports
indicated that Idaho would see no closures, later filings showed
that only the Garden City store would shut down. The Meridian store
at 100 E. Fairview Ave., along with others in Lewiston, Coeur
d'Alene, and Idaho Falls, will remain open and be taken over by
Variety Wholesalers.
Big Lots also stated that Variety Wholesalers may offer employment
to the staff at the acquired locations and distribution centers, as
well as some corporate workers.
"We are pleased to close this strategic transaction, which helps
preserve thousands of jobs, maximize value, and sustain the Big
Lots brand," said Bruce Thorn, Big Lots' president and CEO. "We are
working closely with the teams at Gordon Brothers and Variety
Wholesalers to ensure a smooth transition."
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value,
delivering bargains on everything for the home, including
furniture, decor, pantry and more.
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the Honorable
J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus Capital
Management LP.
PNC Bank, National Association, the DIP ABL Agent and Prepetition
ABL Agent, is represented by Choate, Hall & Stewart, LLP; and Blank
Rome, LLP. 1903P Loan Agent, LLC, the DIP Term Agent, and the
Prepetition Term Loan Agent are represented by Otterbourg, P.C. and
Richards, Layton & Finger, P.A.
BIOXCEL THERAPEUTICS: Amends Employment Agreements for 3 Executives
-------------------------------------------------------------------
BioXcel Therapeutics, Inc., reported in a Form 8-K submitted to the
Securities and Exchange Commission that on Jan. 7, 2025, it entered
into separate amendments to the employment agreements of the
Company's president and chief executive officer, chief financial
officer, and chief scientific officer, as detailed below:
(a) The Employment Agreement, dated March 7, 2018, between the
Company and Vimal Mehta, PhD, its president and chief executive
officer, was amended to, among other things, (i) reduce Dr. Mehta's
2025 cash compensation to $706,558 and (ii) grant options to
purchase 660,000 shares of the Company's common stock pursuant to
the Company's 2020 Incentive Award Plan.
(b) The Employment Agreement dated Oct. 2, 2017, between the
Company and Richard Steinhart, its chief financial officer, was
amended to, among other things, (i) reduce Mr. Steinhart 2025 cash
compensation to $289,800 and (ii) grant options to purchase 270,000
shares of the Company's common stock pursuant to the Company's
Plan.
(c) The Employment Agreement dated Feb. 12, 2018, between the
Company and Frank Yocca, its chief scientific officer, was amended
to, among other things, (i) reduce Dr. Yocca's 2025 cash
compensation to $290,500 and (ii) grant options to purchase 270,000
shares of the Company's common stock pursuant to the Company's
Plan.
Each of the Mehta Options, the Steinhart Options and the Yocca
Options have an exercise price of $0.4713 per share and will vest
in 12 equal monthly installments over a 12-month period.
About BioXcel Therapeutics
Headquartered in New Haven, Conn., BioXcel Therapeutics, Inc., is a
biopharmaceutical company utilizing artificial intelligence to
develop transformative medicines in neuroscience and, through the
Company's wholly owned subsidiary, OnkosXcel Therapeutics LLC,
immuno-oncology. The Company is focused on utilizing cutting-edge
technology and innovative research to develop high-value
therapeutics aimed at transforming patients' lives. The Company
employs various AI platforms to reduce therapeutic development
costs and potentially accelerate development timelines.
Stamford, Conn.-based Ernst & Young LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated March 22, 2024, citing that the Company has suffered
recurring losses from operations, has used significant cash in
operations, and has stated that substantial doubt exists about the
Company's ability to continue as a going concern.
BISHOP OF OAKLAND: Files Amendment to Disclosure Statement
----------------------------------------------------------
The Roman Catholic Bishop of Oakland submitted an Amended
Disclosure Statement for the Amended Plan of Reorganization dated
January 3, 2025.
This Plan is intended to deal with all Claims against the Debtor or
property of the Debtor or the Debtor's Estate of whatever
character, whether or not with recourse, contingent or non
contingent, liquidated or unliquidated, and whether or not
previously Allowed by the Bankruptcy Court pursuant to Section 502
of the Bankruptcy Code, which arise in any manner or from any event
or circumstance arising before the Effective Date.
Like in the prior iteration of the Plan, each Holder of Allowed
General Unsecured Claim shall receive payment in Cash from the
general operating revenues of the Reorganized Debtor in an amount
equal to such Allowed General Unsecured Claim, payable no later
than the later of (a) the date that is one year after the Effective
Date, (b) the date that is twenty-one days after the date when such
General Unsecured Claim becomes an Allowed General Unsecured Claim,
or (c) the date on which the Holder of such General Unsecured Claim
and the Reorganized Debtor shall otherwise agree in writing.
The Reorganized Debtor and the Survivors' Trust may File an
objection to any Claim at any time through the closing of the
Chapter 11 Case. For all other parties in interest except with
respect to Non-Settling Insurers as set forth in Section 1.1.30, an
objection to a Claim must be Filed on or before the Claims
Objection Deadline. As set forth in Section 1.1.30, the Claims
Objection Deadline does not apply to the Non-Settling Insurers who
agree to defend against any Abuse Claim Holder who elects the
Litigation Option.
Option to Opt-Out of Releases
The Ballot for each Holder of a Class 4 Claim and the Unknown Abuse
Claims Representative on behalf of all Holders of Class 5 Claims
shall include a section whereby such Holder may elect to opt out of
the Releases provided under Section 13.9 of this Plan. Any Holder
of a Claim who returns a Ballot on or before the Voting Deadline,
but does not affirmatively opt out of such Releases by checking the
appropriate box on such Holder's Ballot shall be deemed to have
consented to and granted such Releases.
As set forth in the Survivors' Trust Documents, there shall be
established the Survivors' Trust Advisory Committee, which shall be
initially comprised of five (5) members selected by the Committee
and formed as of the Effective Date. Except with respect to
Insurance Settlement Agreements entered into by the Survivors'
Trust after the Effective Date and certain other matters set forth
in the Survivors' Trust Documents, the Survivors' Trust Advisory
Committee is intended to be consultative in nature and assist the
Survivors' Trustee in the independent exercise of the Survivors'
Trustee's duties.
A full-text copy of the Amended Disclosure Statement dated January
3, 2025 is available at https://urlcurt.com/u?l=gT09YG from
Kurtzman Carson Consultants LLC, claims agent.
The Roman Catholic Bishop of Oakland is represented by:
Jeffrey R. Blease, Esq.
Thomas F. Carlucci, Esq.
Shane J. Moses, Esq.
Emil P. Khatchatourian, Esq.
Ann Marie Uetz, Esq.
Matthew D. Lee, Esq.
FOLEY & LARDNER LLP
555 California Street, Suite 1700
San Francisco, CA 94104-1520
Email: jblease@foley.com
tcarlucci@foley.com
smoses@foley.com
ekhatchatourian@foley.com
auetz@foley.com
mdlee@foley.com
About The Roman Catholic Bishop of Oakland
The Roman Catholic Bishop of Oakland, a tax-exempt religious
organization, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-40523) on May 8,
2023. In the petition signed by Bishop Michael Charles Barber, the
Debtor disclosed $100 million to $500 million in both assets and
liabilities.
Judge William J. Lafferty oversees the case.
The Debtor tapped Foley & Lardner LLP as legal counsel and Alvarez
& Marsal North America, LLC as restructuring advisor. Kurtzman
Carson Consultants LLC is the Debtors' claims and noticing agent
and administrative advisor.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee tapped Lowenstein Sandler, LLP as bankruptcy counsel;
Burns Bair LLP as special insurance counsel; and Berkeley Research
Group, LLC as financial advisor.
BLACKBERRY LIMITED: Egan-Jones Retains CCC Sr. Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on December 18, 2024, maintained its
'CCC' foreign currency and local currency senior unsecured ratings
on debt issued by BlackBerry Limited. EJR also withdrew its rating
on commercial paper issued by the Company.
Headquartered in Waterloo, Canada, BlackBerry Limited provides
intelligent security software solutions.
BLUM HOLDINGS: Board Amends Series V Preferred Stock Certificate
----------------------------------------------------------------
Blum Holdings, Inc. reported in a Form 8-K submitted to the
Securities and Exchange Commission that on Dec. 30, 2024, the Board
of Directors amended the designation of a series of the Company's
Series V Preferred Stock and filed an Amended and Restated
Certificate of Designation of Rights, Privileges, Preferences, and
Restrictions of Series V Preferred Stock with the Secretary of
State of the State of Delaware to establish the rights, privileges,
preferences, and restrictions of the Series V Preferred Stock. The
A&R Certificate of Designation became effective upon filing on Dec.
30, 2024. The number of authorized shares of Series V Preferred
Stock is 25,000,000 shares. The following is a summary of the
principal terms of the A&R Certificate of Designation:
Dividends
The holders of the Series V Preferred Stock do not have any
preferential dividend rights and shall be entitled to receive
dividends, if any, only if, when, and as declared by the Board in
its sole and absolute discretion.
Voting Rights
Each share of Series V Preferred Stock shall have the right to take
action by written consent or vote in number equal to two times the
number of shares of the Company's Common Stock into which such
shares of Series V Preferred Stock are then convertible. These
voting rights may be exercised by vote at an annual meeting of the
stockholders of the Company or at a special meeting of the
stockholders of the Company or by written consent of the holders of
Series V Preferred Stock. Except as otherwise required by law or
by the Articles of Incorporation of which the A&R Certificate of
Designation is a part, the holders of shares of Common Stock and
shares of Series V Preferred Stock shall vote together and not as
separate classes.
Conversion
Each share of Series V Preferred Stock shall be convertible into
one-third of a share of Common Stock, as specified in this
paragraph and further outlined in the Amended and Restated
Certificate of Designation. Each share of Series V Preferred Stock
will automatically be converted into one-third fully paid and
nonassessable share of Common Stock on the fourth anniversary of
the date on which the holder's shares of Series V Preferred Stock
were issued. In addition, at any time, or from time to time, from
and after the first anniversary of the date on which a holder's
shares of Series V Preferred Stock were issued, but prior to the
date of the Automatic Conversion, such holder shall be entitled,
upon written notice to the Company and the transfer agent (or
solely to the Company if the Company serves as its own transfer
agent for the Series V Preferred Stock), to convert each of such
holder's shares of Series V Preferred Stock then held into
one-third of a fully paid and nonassessable share of Common Stock.
Liquidation Preference
Upon any Liquidation Event (as defined in the A&R Certificate of
Designation), before any distribution or payment shall be made to
the holders of any class or series of the Company's capital stock
ranking junior to the Series V Preferred Stock, the holders of the
Series V Preferred Stock shall be entitled to be paid out of the
assets of the Company an amount equal to an aggregate of $1.00
allocated among all of the then-issued and outstanding shares of
Series V Preferred Stock. After the payment of the Preference
Value of the shares of the Series V Preferred Stock as set forth in
the A&R Certificate of Designation, the remaining assets of the
Company legally available for distribution, if any, shall be
distributed ratably to the holders of the Company's Common Stock
and other classes or series of the Company's capital stock in the
manner provided by law or the charter documents of the Company.
Trading Market
There is no established trading market for any of the Series V
Preferred Stock, and the Company does not expect a market to
develop. The Company does not intend to apply for a listing for
any of the Series V Preferred Stock on any securities exchange or
other nationally recognized trading system. Without an active
trading market, the liquidity of the Series V Preferred Stock will
be limited.
About Blum Holdings
Blum Holdings, Inc., headquartered in Santa Ana, California, is a
cannabis company with operations in retail and distribution
throughout California, with an emphasis on providing medical and
adult use cannabis products. The Company is home to Korova, a
brand of high potency products across multiple product categories,
currently available in California. The Company operates Blum OC, a
premier cannabis dispensary in Orange County, California. The
Company also owns dispensaries in California which operate as The
Spot in Santa Ana, Blum in Oakland, and Blum in San Leandro.
Costa Mesa, California-based Marcum LLP, the company's auditor
since 2018, issued a "going concern" qualification in its report
dated April 15, 2024. The report emphasizes that the Company has a
significant working capital deficiency, has incurred significant
losses and needs to raise additional funds to meet its obligations
and sustain its operations. These factors cast substantial doubt
on the company's ability to continue as a going concern.
BLUM HOLDINGS: Executes $800K Amended Note with Douglas Rosenberg
-----------------------------------------------------------------
Blum Holdings, Inc., reported in a Form 8-K submitted to the
Securities and Exchange Commission that on December 31 it executed
and delivered an Amended and Restated Unsecured Promissory Note in
the principal amount of $800,000 to Douglas Rosenberg, as lender,
amending and restating that certain Unsecured Promissory Note in
the principal amount of $400,000 dated as of Nov. 12, 2024. Mr.
Rosenberg is the co-founder and CEO of Mesh Ventures and co-founder
of 1212 Ventures, both of which hold significant investments in
Cookies Creative Productions & Consulting, Inc. Blum, through its
subsidiary, operates a Cookies-branded store. Additionally, Blum
partners with Cookies to participate in events such as Hall of
Flowers and the Emerald Cup. Sabas Carrillo, the CEO of Blum,
served as chief financial officer of Cookies from 2018 to 2020.
Sabas is also a co-founder, Board Member and CFO at Mesh Ventures,
and a General Partner and Limited Partner at both Mesh Ventures and
1212 Ventures.
The A&R Note has a maturity date of Dec. 31, 2026 with no interest
accruing except for default interest and no prepayment penalty.
The A&R Note is convertible at the Lender's election into a
convertible promissory note that shall include (i) an automatic
conversion into the shares of capital stock issued by Blum in its
next bona fide equity financing with proceeds to Blum of at least
$10,000,000 or such lesser amount as approved by Lender at a
conversion price equal to the lesser of (x) 85% of the lowest price
paid by the cash investors in such financing and (y) the price
represented by a $30,000,000 pre-money valuation of Blum.
Debt Conversion Agreement
Effective as of Dec. 31, 2024, the Company entered into a Debt
Conversion Agreement wherein accounts payable due to Adnant, LLC in
the amount of $6,165,050 pursuant to the terms of the Engagement
Letter dated as of Aug. 12, 2022, and as amended and restated on
June 30, 2023, shall be converted into shares of Common Stock of
the Company at a price per share of $1.62 (representing a per share
price equal to 85% of $1.90) for an aggregate number of shares of
3,808,559 as repayment of the accounts payable. The shares of
Common Stock issued to Adnant pursuant to the Debt Conversion
Agreement have not been registered under the Securities Act or
under any state securities laws.
Amended and Restated Engagement Letter
On Jan. 1, 2025, the Company entered into an Amended and Restated
Engagement Letter with Adnant, extending the term of the engagement
through Dec. 31, 2025. The service fee was reduced from $250,000
to $75,000, payable monthly, contingent upon the Company
maintaining a sufficient cash balance.
About Blum Holdings
Blum Holdings, Inc., headquartered in Santa Ana, California, is a
cannabis company with operations in retail and distribution
throughout California, with an emphasis on providing medical and
adult use cannabis products. The Company is home to Korova, a
brand of high potency products across multiple product categories,
currently available in California. The Company operates Blum OC, a
premier cannabis dispensary in Orange County, California. The
Company also owns dispensaries in California which operate as The
Spot in Santa Ana, Blum in Oakland, and Blum in San Leandro.
Costa Mesa, California-based Marcum LLP, the company's auditor
since 2018, issued a "going concern" qualification in its report
dated April 15, 2024. The report emphasizes that the Company has a
significant working capital deficiency, has incurred significant
losses and needs to raise additional funds to meet its obligations
and sustain its operations. These factors cast substantial doubt
on the company's ability to continue as a going concern.
BOBEL ELECTRIC: M. Colette Gibbons Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed M. Colette Gibbons,
Esq., a practicing attorney in Westlake, Ohio, as Subchapter V
trustee for Bobel Electric, Inc.
Ms. Gibbons will be paid an hourly fee of $400 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Gibbons declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
M. Colette Gibbons, Esq.
Attorney at Law
28841 Weybridge Drive
Westlake, OH 44145
Phone: (216) 798-6940
Email: colette@mcgibbonslaw.com
About Bobel Electric Inc.
Bobel Electric Inc. is the fee simple owner of three properties
located in Lorain, Ohio, having a total current value of $1.23
million.
Bobel Electric filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. N.D. Ohio Case No. 25-10010) on January
3, 2025. In its petition, the Debtor reported total assets of
$1,249,270 and total liabilities of $2,327,862.
Judge Jessica E. Price Smith handles the case.
Glenn E. Forbes, Esq., at Forbes Law, LLC represents the Debtor as
bankruptcy counsel.
BOTAS SANTA: Kevin Neiman Named Subchapter V Trustee
----------------------------------------------------
The Acting U.S. Trustee for Region 19 appointed Kevin Neiman as
Subchapter V trustee for Botas Santa Cruz Corp.
Mr. Neiman will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Neiman declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kevin S. Neiman
999 18th Street, Suite 1230 S
Denver, CO 80202
Tel: (303) 996-8637
Fax: (877) 611-6839
Email: trustee@ksnpc.com
About Botas Santa Cruz
Botas Santa Cruz Corp. is a clothing and clothing accessories
retailer in Greeley, Colo.
Botas Santa Cruz sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 25-10061) on January 6,
2025, with $500,000 to $1 million in assets and $1 million to $10
million in liabilities. Jose Meza Aguirre, president of Botas Santa
Cruz, signed the petition.
Judge Thomas B. McNamara presides over the case.
Keri L. Riley, Esq., at Kutner Brinen Dickey Riley P.C. represents
the Debtor as legal counsel.
CAESARS ENTERTAINMENT: Egan-Jones Retains CCC Sr. Unsec. Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on December 18, 2024, maintained its
'CCC' foreign currency and local currency senior unsecured ratings
on debt issued by Caesars Entertainment, Inc. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Paradise, Nevada, Caesars Entertainment, Inc. is a
gaming company operating casino resorts.
CAESARS HOLDINGS: Egan-Jones Retains CCC Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on December 18, 2024, maintained its
'CCC' local currency senior unsecured ratings on debt issued by
Caesars Holdings, Inc.
Headquartered in Las Vegas, Nevada, Caesars Holdings, Inc. operates
as a gaming company.
CARPENTER TECHNOLOGY: Egan-Jones Hikes Sr. Unsecured Ratings to BB
------------------------------------------------------------------
Egan-Jones Ratings Company on December 2, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Carpenter Technology Corporation to BB from BB-. EJR
also withdrew its rating on commercial paper issued by the
Company.
Headquartered in Philadelphia, Pennsylvania, Carpenter Technology
Corporation manufactures, fabricates, and distributes stainless
steels, titanium, and specialty metal alloys.
CATHERINE ANDERSON: Seeks Bankruptcy Protection in Maryland
-----------------------------------------------------------
On January 8, 2025, The Catherine Anderson Family Trust filed
Chapter 11 protection in the U.S. Bankruptcy Court for
the District of Maryland.
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 The Catherine Anderson Family Trust
The Catherine Anderson Family Trust is business trust operating in
Baltimore City, Maryland.
The Catherine Anderson Family Trust sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-10167) on
January 8, 2025. In its petition, the Debtor reports estimated
assets up to $50,000 and estimated liabilities between $100,000 and
$500,000.
CATHETER PRECISION: Jenkins Family Holds 8.3% Equity Stake
----------------------------------------------------------
Casey A. Jenkins disclosed in a Schedule 13D filing with the U.S.
Securities and Exchange Commission that as of December 31, 2024,
she beneficially own 832,243 shares of Catheter Precision, Inc.'s
common stock, representing 9.9% based on 8,004,633 shares of common
stock outstanding on December 31, 2024.
Jenkins Family Charitable Institute also disclosed that as of
December 31, 2024, it beneficially owns 676,360 shares of Catheter
Precision, Inc.'s common stock, representing 8.3% based on
8,004,633 shares of common stock outstanding on December 31, 2024.
Casey A. Jenkins is the trustee of the Jenkins Family Charitable
Institute. Ms. Jenkins is the Vineyard Manager for Heritage School
Vineyards, LLC. The Jenkins Family Institute's principal business
is to serve as a family charitable entity.
With respect to Casey A. Jenkins, her equity stake includes 150,000
shares subject to currently exercisable Series J Warrants and does
not include 262.256 shares of Series X Preferred Stock which are
convertible into approximately 26,225 shares of common stock upon
satisfaction of certain conditions that have not currently been
met.
With respect to the Jenkins Family Charitable Institute, its equity
stake includes 176,134 shares subject to currently exercisable
Series H Warrants held by the Jenkins Family Charitable Institute
and does not include Series H, I and J Warrants held by the Jenkins
Family Charitable Institute to purchase an aggregate of 873,866
shares of common stock which are currently not exercisable due to
beneficial ownership blockers. It also does not include 18.691
shares of Series X Preferred Stock held by the Jenkins Family
Charitable Institute which are convertible into approximately 1,869
shares of common stock upon satisfaction of certain conditions that
have not currently been met.
Approximately $500,000 of funds held by the Jenkins Family
Charitable Institute were used to purchase 265,000 common stock
units and 235,000 pre-funded units of the Company in an
underwritten public offering pursuant to an underwriting agreement
dated August 30, 2024. Each common stock unit, priced at a public
offering price of $1.00 per unit, consisted of one share of common
stock, one warrant to purchase one share of common stock at an
exercise price of $1.00 per share that expires on the six month
anniversary of the date of issuance, one warrant to purchase one
share of common stock at an exercise price of $1.00 per share that
expires on the eighteen month anniversary of the date of issuance,
and one warrant to purchase one share of common stock at an
exercise price of $1.00 per share that expires on the five year
anniversary of the date of issuance.
Each pre-funded unit, priced at a public offering price of $0.9999
per unit, consisted of one pre-funded warrant to purchase one share
of common stock at an exercise price of $0.0001 per share that has
no expiration date, one Series H Warrant, one Series I Warrant and
one Series J Warrant. The Public Offering closed on September 3,
2024. Each of the Warrants contained a beneficial ownership
blocker that currently prevents the Institute from exercising it to
acquire additional shares of common stock if its beneficial
ownership of Company common stock would exceed 9.99% immediately
after the exercise.
On October 29, 2024, the Company waived the beneficial ownership
blocker contained in the Pre-Funded Warrants, and on October 29,
2024, the Institute exercised all of its Pre-Funded Warrants to
acquire 235,000 shares of Company common stock for an aggregate
purchase price of $23.50. On December
About Catheter Precision Inc.
Headquartered in the U.S., Catheter Precision, Inc. is a medical
device company focused on improving the treatment of cardiac
arrhythmias. The Company, which was reincorporated as Ra Medical
Systems, Inc. in Delaware in 2018 and changed its name to Catheter
Precision, Inc. on August 17, 2023, develops technology for
electrophysiology procedures through collaborations with
physicians
and continuous product advancements.
East Brunswick, New Jersey-based WithumSmith+Brown, PC., the
Company's auditor since 2023, issued a "going concern"
qualification in its report dated March 29, 2024, citing recurring
operating losses and anticipated future losses that raise
substantial doubt about the Company's ability to continue as a
going concern.
For the year ended December 31, 2023, Catheter Precision reported
a
net loss of $70.6 million, compared to a net loss of $26.9 million
for 2022. As of September 30, 2024, Catheter Precision had $26.7
million in total assets, $13.9 million in total liabilities, and
$12.8 million in total stockholders' equity.
CEMTREX INC: Posts $7.6-Mil. Net Loss in FY Ended Sept. 30
----------------------------------------------------------
Cemtrex, Inc. filed with the U.S. Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$7,635,505 on $66,863,884 of revenues for the year ended Sept. 30,
2024, compared to a net loss of $9,233,438 on $59,368,562 of
revenues for the year ended Sept. 30, 2023.
As of Sept. 30, 2024, the Company had $44,115,458 in total assets,
$39,154,616 in total liabilities, $250,165 in non-controlling
interest and $4,710,677 in total Cemtrex stockholders' equity.
Jericho, New York-based Grassi & Co, CPAs, P.C., the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated Dec. 30, 2024, citing that the Company has sustained
net losses and has significant short-term debt obligations, which
raise substantial doubt about its ability to continue as a going
concern.
A full-text copy of the Form 10-K is available at:
https://tinyurl.com/5uzcw2yy
About Cemtrex
Cemtrex, Inc. was incorporated in 1998 in the state of Delaware and
has evolved through strategic acquisitions and internal growth into
a multi-industry company. During the first quarter of fiscal year
2023, the Company reorganized its reporting segments to be in line
with its current structure consisting of (i) Security, (ii)
Industrial Services, and (iii) Cemtrex Corporate.
CENTRAL GARDEN: Egan-Jones Retains BB Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on December 12, 2024, maintained its
'BB' foreign currency and local currency senior unsecured ratings
on debt issued by Central Garden & Pet Company. EJR also withdrew
its rating on commercial paper issued by the Company.
Headquartered in Walnut Creek, California, Central Garden & Pet
Company manufactures and distributes branded and private label
products.
CHABAD OF GRAMERCY: Case Summary & Six Unsecured Creditors
----------------------------------------------------------
Debtor: Chabad of Gramercy Park
765 Montgomery St 2nd FL
Brooklyn, NY 11213
Business Description: The Debtor owns a portfolio of five
properties situated across various locations
in New York, with a combined estimated value
of $13.77 million.
Chapter 11 Petition Date: January 8, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-40105
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Tel: (718) 513-3145
Fax: (347) 342-3156
E-mail: alla@kachanlaw.com
Total Assets: $13,770,000
Total Liabilities: $24,715,943
The petition was signed by Naftali Rotenstreich as president.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/K74Q43Y/Chabad_of_Gramercy_Park__nyebke-25-40105__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Six Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. 211 Thompson Owners Corp. $147,019
211 Thompson St
New York, NY 10012
2. 40 W 22nd Tenants Coop $163,323
40-42 West 22nd St
New York, NY 10010
3. Kasowitz Benson Torres LL $350,000
Paramount Plaza,
1633 Broadway
New York, NY 10019
4. Lehman Flynn $55,600
Vollaro PLLC
534 Broadhollow Rd
Suite 302
Melville, NY 11747
5. M&T Bank $20,000,000
301 West Plank Road
2nd FL
Altoona, PA 16602
6. Steven F Johnson $0
c/o Goetz Schenker Blee
101 Greenwich St
20th Floor
New York, NY 10006
CITY BREWING: Moody's Cuts CFR to C & Alters Outlook to Negative
----------------------------------------------------------------
Moody's Ratings downgraded City Brewing Company, LLC's ("City",
"City Brewing" or "the company") Corporate Family Rating to C from
Caa2 and City's Probability of Default Rating to C-PD/LD from
Caa2-PD following the company entering into a forbearance agreement
with first out and second out lenders, as well as the completion of
a super-senior priming term loan. Moody's appended a limited
default designation (/LD) to the C-PD because the company missed
the first out and second out term loan amortization payments that
were due on December 31, 2024. Moody's assigned a Caa1 rating to
BrewCo Borrower, LLC's (BrewCo) new $35 million backed
super-priority senior secured first lien term loan maturing in
2026. Concurrently, Moody's downgraded BrewCo's $120 million backed
senior secured first lien revolving credit facility maturing in
2027 to Caa2 from B3, BrewCo's $121 million backed senior secured
first lien first out new money term loan maturing in 2028 to Caa2
from B3, BrewCo's $364 million backed senior secured first lien
first out term loan maturing in 2028 to Caa2 from B3 and BrewCo's
$400 million backed senior secured first lien second out term loan
maturing in 2028 to C from Caa3. Moody's also downgraded to C from
Ca the remaining portion of City Brewing's first lien term loan
that remains outstanding following the April 2024 debt exchange.
City's and BrewCo's rating outlooks are changed to negative from
positive.
On January 2, 2025, City entered into a new $35 million
super-senior priming term loan issued by BrewCo Borrower, LLC that
matures on January 3, 2026. The facility is backstopped by an ad
hoc group of lenders and being offered to non-backstopping lenders
on a pro rata basis with a participation deadline of January 14,
2025. As part of the transaction, the company entered into a
forbearance agreement to defer all existing first out and second
out amortization and interest payments until the maturity of the
priming facility. Because Moody's view the missed payments as a
default on the original terms of the agreement notwithstanding the
forbearance agreement, the /LD designation will remain in place
until the payments are made. The company also entered into an
agreement with Pabst Blue Ribbon (Pabst) for Pabst Blue Ribbon to
exit its beer co-manufacturing production at City that is expected
to be completed by mid-2025. Production of flavored malt beverages
(FMBs), Old Style and a couple of other brands will remain at
City.
The downgrade reflects the missed payments, the high likelihood of
a debt restructuring within a short time period and the execution
risk for the company to quickly turn around its operating
performance. City and Pabst modified their contract to allow City
to largely exit co-manufacturing of Pabst's beer product following
issues onboarding Pabst's production over the last two years.
Operating results for 2024 are expected to be significantly weaker
than the company's previous expectation. The downgrade also
reflects the missed term loan amortization payment on December 31,
2024 and the forbearance agreement on amortization and interest
payments until the maturity of the priming facility. Moody's
believe the company is contemplating a debt restructuring to
provide more liquidity and flexibility to execute its operational
turn around strategies that is necessary to increase earnings and
cash flow.
The rating outlooks were changed to negative due to the increased
risk of a comprehensive restructuring within a short time period
and that the company's weak liquidity and execution risk to improve
earnings could further weaken estimated recovery values. The Caa1
rating on BrewCo's super-senior priming term loan reflects that the
loan is senior in lien and payment priority to the existing BrewCo
loans and is secured by a priming super-senior lien on all
collateral under the existing BrewCo credit agreement and any
unencumbered property of the borrowers and guarantors.
RATINGS RATIONALE
City Brewing's C CFR reflects the high likelihood of a debt
restructuring within a short time period, that the company is
operating under a forbearance agreement with lenders relating to
interest and principal payments on most of its debt, and the
company's weak operating performance and liquidity and very high
leverage. The company's credit profile also reflects its smaller
scale than most rated beverage companies and negative free cash
flow since the 2021 dividend recapitalization due to previous
operating challenges and high interest costs. Moody's expect free
cash flow to remain negative in 2025, reflecting the need to
replace sales volume which will be lost as Pabst Blue Ribbon exits
its contract. However, City will benefit from the contract exit
payments. City Brewing continues to face the risk of potential
volume decline should categories currently in favor begin to
decline, or if customers move production in house or to other
co-packers.
City Brewing benefits from its position as the largest non-brand
owning alcoholic beverage co-packer in the US. The company has a
long-standing customer base, moderate commodity price exposure, and
an asset base that is more geographically diverse after the 2021
addition of the Irwindale brewery in California. City Brewing's
business is skewed toward producing beverages in premium
categories, typically leading to healthy margins. City Brewing also
offers customers solutions to manage the increasing product and
packaging complexity in the industry that has significant barriers
to entry.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A rating upgrade could be considered if the company executes well
on expansion initiatives, restores operating efficiencies and
growth, further diversifies its customer base to reduce customer
concentration, restores healthy margins, reduces leverage, and
generates free cash flow.
A downgrade of the instruments could occur in the case of further
operational difficulties, including any material delays in getting
new capacity on-line to successfully ramp up production, failure to
regain customers and fulfill their orders, failure to improve
margins, or sustained loss of significant customer business that
would leave capacity underutilized. Debt to EBITDA leverage
remaining elevated, a deterioration in liquidity or a decline in
estimated recovery values could also lead to a downgrade.
COMPANY PROFILE
Headquartered in La Crosse, WI, City Brewing Company, LLC is
engaged primarily in the contract production and packaging of
beverages including beer and malt based alcoholic beverages, teas,
energy drinks and soft drinks. Customers include large branded,
independent beverage makers and marketers, including companies
engaged in both the alcoholic and non-alcoholic beverage segments.
The company operates breweries in La Crosse, WI, Latrobe, PA and
Memphis, TN. The purchase in 2021 of the Irwindale, CA equipment
and leasehold added a fourth brewery on the west coast. The company
is minority owned by private equity firms Charlesbank Capital
Partners, and Oaktree Capital Management LLC, with the majority
held by Blue Ribbon Partners, which is owned and led by American
beverage entrepreneur Eugene Kashper. City's net sales for fiscal
year ended December 2023 were over $500 million. However, these
revenues are predominately fees and thus may not be comparable with
revenues generated by other contract manufacturers.
The principal methodology used in these ratings was Alcoholic
Beverages published in December 2021.
CLARIOS GLOBAL: Fitch Assigns 'B+' Rating on New First Lien Loans
-----------------------------------------------------------------
Fitch Ratings has assigned a rating of 'B+' with a Recovery Rating
of 'RR3' to Clarios Global LP's proposed first lien secured USD and
EUR term loans. The proposed loans will be pari passu with Clarios
Global's existing first lien debt.
Clarios Global is a subsidiary of Clarios International Inc.
(Clarios). Both Clarios and Clarios Global have a Long-Term Issuer
Default Rating (IDR) of 'B' with a Stable Rating Outlook.
Fitch recently revised Clarios' Outlook to Stable from Positive,
reflecting the expected increase in leverage resulting from the
company's plan to issue debt to fund a distribution to its
sponsors.
Key Rating Drivers
Proposed Term Loans: On Jan. 6, 2025, Clarios announced that it
plans to issue debt to fund a special distribution to its sponsors.
Proceeds from both the proposed first lien secured USD and EUR term
loans will be used to fund a portion of that planned distribution.
The total distribution is planned at $4.5 billion.
Leverage Expected to Rise Significantly: Between fiscal YE 2020 and
YE 2024, Clarios' debt (including off-balance-sheet factoring)
declined by about $2.1 billion. Over this time, EBITDA gross
leverage (calculated according to Fitch's methodology) declined to
4.6x from 10.0x. The company reduced debt through term loan
prepayments, open-market purchases of outstanding notes and the
retirement of its 2025 senior secured notes with cash on-hand.
Fitch's EBITDA calculation currently excludes Clarios' Inflation
Reduction Act (IRA) Section 45 tax credits.
Looking ahead, Fitch expects gross EBITDA leverage to return to
above 6.0x due to the incremental debt to fund the special
distribution. Fitch now expects leverage at fiscal YE 2025 to be
near the mid-6x range, including off-balance-sheet factoring.
Despite the increase in debt, Fitch expects Clarios to have
opportunities to reduce debt over the long term. EBITDA leverage
could decline toward 6.0x or lower over the next couple years if
the company targets FCF toward debt reduction.
Solid FCF Expected: Fitch expects Clarios to generate solid FCF
over the next several years. However, near-term FCF margin will
likely be held back by increased cash interest expense on the
higher debt. Fitch expects Clarios to generate FCF margins
(according to Fitch's methodology) around 4.5% in fiscal 2025, down
from 5.8% in fiscal 2024. Over the long term, the shift toward
advanced batteries and continued cost savings could increase the
FCF margin above 5.0%. Fitch expects capex as a percentage of
revenue to be in the 4.0%-4.5% range over the next few years.
Sub-3.0x EBITDA Interest Coverage Expected: Fitch expects Clarios'
EBITDA interest coverage to fall below 3.0x following the issuance
of the new debt. Actual coverage will depend on the pricing of the
new debt, but using market interest rates, Fitch expects EBITDA
interest coverage to be in the upper-2x range for the next couple
of years. Actual EBITDA interest coverage at fiscal YE 2024 was
3.4x. Clarios typically uses hedges to convert a portion of its
floating-rate debt to fixed rates, mitigating the effect of
fluctuating rates on the company's interest expense.
Derivation Summary
Clarios has a very strong competitive position as the largest
low-voltage vehicle battery manufacturer in the world, with the
company responsible for about one-third of the industry's total
global production. Although Clarios counts many global original
equipment (OE) manufacturers as customers, roughly 80% of its sales
are typically derived from the global vehicle aftermarket.
Clarios' strong aftermarket presence provides it with a more stable
revenue stream through the cycle than auto suppliers that are
predominantly tied to new vehicle production, such as BorgWarner
Inc. (BBB+/Stable) or Aptiv PLC (BBB/Stable). The company's heavy
aftermarket weighting makes it more comparable to global tire
manufacturers, such as Compagnie Generale des Etablissements
Michelin (A-/Stable) and The Goodyear Tire & Rubber Company
(BB-/Negative) or other suppliers with a significant aftermarket
concentration, such as First Brands Group LLC (B+/Stable) or
Tenneco Inc. (B/Positive).
Clarios' margins are strong for an auto supplier, with forecasted
EBITDA margins (according to Fitch's methodology) running in the
high teens in percentage terms over the next several years, which
is stronger than many investment-grade auto suppliers, such as
BorgWarner or Aptiv. It's forecasted FCF margins in the low- to
mid-single-digit range are also consistent with investment-grade
auto suppliers. However, Clarios' leverage is relatively high and
consistent with auto suppliers in the 'B+' rating category.
Over the long term, Fitch expects Clarios' leverage to continue to
decline as a result of higher EBITDA from sales growth tied to the
rising global vehicle population and a richer mix of advanced
batteries. Fitch also expects the company to continue to actively
seek opportunities to reduce debt, which would further accelerate
leverage reduction.
Parent/Subsidiary Linkage
Fitch rates the IDRs of Clarios and its Clarios Global subsidiary
on a consolidated basis, using the weak parent/strong subsidiary
approach and open access and control factors, as discussed in
Fitch's "Parent and Subsidiary Linkage Rating Criteria". This is
based on the entities operating as a single enterprise with strong
legal and operational ties.
Key Assumptions
- Clarios Global issues new senior secured first lien debt, which
is used to fund a distribution to the company's sponsors;
- Global automotive battery demand rises in the low-single-digit
range in fiscal 2025, due to ongoing increases in global vehicle
production and replacement battery demand. Beyond 2025, global
demand continues to rise in the low single-digit range annually;
- In addition to volume growth, revenue is supported over the next
several years by the mix shifting to higher-priced advanced
batteries, as well as modest price increases on traditional
batteries;
- Margins are roughly flat in fiscal 2025 (excluding section 45x
credits) and then generally grow over the next several years as a
result of operating leverage on higher production levels, positive
pricing and mix, and savings associated with cost-reduction
initiatives;
- Capex as a percentage of revenue is in the 4.0%-4.5% range over
the next few years;
- The company uses a portion of its excess cash to reduce debt over
the next several years;
- Most debt maturities are refinanced at prevailing interest rates
prior to maturity;
- Fitch has not incorporated the effect of any potential IPO into
its forecasts;
- Fitch has incorporated the following interest rate assumptions
into its forecasts: SOFR of 4.05%, 3.74%, 3.65% and 3.57% in fiscal
2025, 2026, 2027 and 2028. EURIBOR: 1.87%, 1.94%, 2.02% and 2.12%
in fiscal 2025, 2026, 2027 and 2028 respectively.
Recovery Analysis
Fitch's recovery analysis assumes Clarios would be considered a
going concern (GC) in bankruptcy and would be reorganized rather
than liquidated. Fitch has assumed a 10% administrative claim in
the recovery analysis.
Clarios' recovery analysis reflects a potential severe downturn in
vehicle battery demand and estimates the GC EBITDA at $1.6 billion,
which reflects Fitch's view of a sustainable, post-reorganization
EBITDA level upon which the valuation of the company would be based
following a hypothetical default.
The GC EBITDA is about $200 million higher than the level used in
Fitch's previous recovery analysis and incorporates changes to the
company's business profile, including the shift toward advance
batteries and cost-saving activities, which Fitch believes would
increase the company's valuation. The sustainable,
post-reorganization EBITDA is for analytical valuation purposes
only and does not reflect a level of EBITDA at which Fitch believes
the company would fall into distress.
The GC EBITDA considers Clarios' stable operations, high operating
margins, significant percentage of aftermarket revenue and the
nondiscretionary nature of its products. The $1.6 billion ongoing
EBITDA assumption is 23% lower than Fitch's calculated actual
EBITDA of $2.1 billion for fiscal 2024.
Fitch utilizes a 6.0x enterprise value (EV) multiple based on
Clarios' strong global market position and the nondiscretionary
nature of the company's batteries. In addition, Brookfield Asset
Management Inc.'s acquisition of Clarios in 2019 valued the company
at an EV over 8.0x (excluding expected post-acquisition cost
savings). All of Clarios' rated debt is guaranteed by certain
foreign and domestic subsidiaries.
According to Fitch's "Automotive Bankruptcy Enterprise Values and
Creditor Recoveries" report published in April 2024, 52% of
auto-related defaulters had exit multiples above 5.0x, with 30% in
the 5.0x to 7.0x range. However, the median multiple observed
across 23 bankruptcies was only 5.1x.
Within the report, Fitch observed that 87% of the bankruptcy cases
analyzed were resolved as a GC. Automotive defaulters were
typically weighed down by capital structures that became untenable
during a period of severe demand weakness, either due to economic
cyclicality or the loss of a significant customer, or they were
subject to significant operational issues.
While Clarios has a highly leveraged capital structure, Fitch
believes the company's business profile is stronger than most of
the issuers included in the automotive bankruptcy observations.
Consistent with Fitch's criteria, the recovery analysis assumes
that $1.7 billion of off-balance-sheet factoring is replaced with a
super-senior facility that has the highest priority in the
distribution of value. Fitch also assumes a full draw on the $800
million ABL revolver, which was not constrained by the borrowing
base limit as of Sept. 30, 2024. The ABL receives second priority
in the distribution of value after the factoring. Due to the ABL's
first lien claim on ring-fenced collateral, the facility receives a
Recovery Rating of 'RR1' with a waterfall generated recovery
computation (WGRC) in the 91%-100% range.
The analysis also assumes a full draw on the $800 million cash flow
revolver. Including this, the first lien secured debt totals $11.7
billion outstanding (including the estimated new debt) and receives
a lower priority than the ABL in the distribution of value
hierarchy, in part due to its second lien claim on the ABL's
collateral. This results in a Recovery Rating of 'RR3' with a WGRC
in the 50%-70% range.
The $1.6 billion of outstanding senior unsecured notes has the
lowest priority in the distribution of value. This results in a
Recovery Rating of 'RR6' with a WGRC in the 0%-10% range, owing to
the significant amount of secured debt positioned above it in the
distribution waterfall.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Gross EBITDA leverage above 7.0x without a clear path to
de-levering on a sustained basis;
- EBITDA interest coverage approaching 1.5x on a sustained basis;
- A decline in the Fitch-calculated EBITDA margin below 10% and FCF
margin near 1.0%, both on a sustained basis.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Financial policy-driven debt reduction that leads to gross EBITDA
leverage of 5.5x on a sustained basis;
- EBITDA interest coverage of 2.5x on a sustained basis;
- Fitch-calculated EBITDA margins in the low teens in percentage
terms and FCF margin of 2.5%, both on a sustained basis.
Liquidity and Debt Structure
Solid Liquidity: Liquidity as of Sept. 30, 2024, included $344
million of cash and cash equivalents, augmented by significant
revolver capacity. Revolver capacity includes both an $800 million
ABL facility and an $800 million first lien secured cash flow
revolver. As of Sept. 30, 2024, a total of about $1.6 billion was
available on the two revolvers, with full availability on the cash
flow revolver and $753 million available on the ABL, after
accounting for $47 million of letters of credit backed by the
facility.
The ABL and revolver both mature in 2028. However, a springing
maturity provision that applies to both facilities could accelerate
the maturities to as early as February 2026 if the company's senior
secured notes due 2026 are not refinanced or redeemed prior to that
time.
Debt obligations (excluding Fitch's factoring adjustments) are
light in FY 2025, but the company has $1.7 billion of debt maturing
in FY 2026 and $1.6 billion maturing in FY 2027.
Fitch expects Clarios' FCF to generally be sufficient to cover its
seasonal cash needs. As a result, based on its criteria, Fitch has
treated all of Clarios' cash as readily available.
Debt Structure: As of Sept. 30, 2024, Clarios had about $9.6
billion of debt outstanding, including off-balance-sheet factoring.
This consisted of $6.4 billion of first lien secured debt,
comprising U.S. dollar- and euro-denominated term loans and secured
notes, as well as about $1.6 billion of senior unsecured notes. The
remaining debt consisted of $1.7 billion of off-balance-sheet
factoring. Fitch excludes finance leases from its debt
calculations.
Clarios' term loans provide it with prepayment flexibility.
However, Clarios also has a significant amount of non-amortizing
debt that could lead to refinancing risk over the long term. That
said, the company's senior secured notes due 2026, as well as its
senior unsecured notes, became callable in May 2022.
Issuer Profile
Clarios is the world's largest manufacturer and distributor of
low-voltage, advanced automotive batteries. It provides one in
every three automotive lead-acid batteries globally, servicing
cars, heavy duty trucks, motorcycles, marine and power sports
vehicles in the OE and aftermarket channels.
Date of Relevant Committee
19 December 2024
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery
----------- ------ --------
Clarios Global LP
senior secured LT B+ New Rating RR3
CLARIOS GLOBAL: Moody's Cuts CFR to B2 & Senior Secured Debt to B1
------------------------------------------------------------------
Moody's Ratings downgraded the ratings of Clarios Global LP,
including the corporate family rating to B2 from B1, probability of
default rating to B2-PD from B1-PD, backed senior secured bank
credit facilities to B1 from Ba3, senior secured notes ratings to
B1 from Ba3, and senior unsecured debt rating to Caa1 from B3.
At the same time, Moody's assigned B1 ratings to Clarios' proposed
$800 million backed senior secured first lien revolving credit
facility with maturity date in January 2030 and $2.5 billion and
around EUR770 million (or $800 million equivalent) backed senior
secured first lien term loans. Moody's took no action on the
existing $800 million senior secured revolving credit facility
expiring in March 2028 because this facility will be replaced by
the new revolver once the proposed transaction closes. The outlook
is stable.
Clarios seeks to issue new USD and EURO senior secured first lien
term loan tranches totaling $3.3 billion. The company also plans to
issue other $1.2 billion of additional senior secured debt. The
company intends to use the proceeds from the new senior secured
debt to fund a $4.5 billion distribution to its shareholders.
Therefore, Moody's expect its debt-to-LTM EBITDA to increase to
6.0x over the next 12-18 months from 4.5x at the end of September
2024, excluding Section 45X tax credits.
The downgrade of the ratings reflects Moody's expectation that,
excluding Section 45X tax credits, the higher debt load will result
in debt-to-EBITDA remaining high over the next 12-18 months. The
high leverage will be partially offset by higher earnings.
The stable outlook reflects Moody's expectation that Clarios'
revenue will grow 3.5% per year over the next 12-18 months due to
higher unit sales and favorable pricing, and that Clarios will
continue to win new battery electric vehicle platforms. Moody's
also expect the company will improve its EBIT margin because of
higher revenue contribution from its advanced batteries and strong
cost control efforts.
Governance considerations, especially financial strategy and risk
management, are a key driver of the rating action. This is driven
primarily by the company's decision to pay a large debt-funded
distribution that will lead to higher leverage.
RATINGS RATIONALE
Clarios' B2 CFR reflects the company's good scale and strong market
position in automotive batteries supported by its long-standing
customer relationships. Roughly 80% of Clarios' global unit volume
is from more stable and higher margin aftermarket sales. The
industry has high barriers to entry given the environmental
liability risks related to the handling and processing of lead.
However, Clarios has exposure to commodity price fluctuations, in
particular lead. The company has high leverage, and Moody's expect
debt-to-EBITDA (including approximately $1.68 billion in accounts
receivable securitization) to increase to around 6.0x over the next
12 to 18 months, excluding Section 45X tax credits. In addition,
the high interest expense burden of the considerable debt load
constrains free cash flow and limits interest coverage.
Clarios will benefit materially from Section 45X tax credits,
assuming they remain in place, for the domestic manufacturing of
batteries. However, the deployment of cash from the tax credits
remains uncertain.
Liquidity will be good over the next 12 months, supported by cash
and cash equivalents of around $344 million as of the end of
September 2024 and Moody's expectation for free cash flow to exceed
$150 million over the next 12 months, excluding any tax refund from
Section 45X tax credits and the $4.5 billion distribution payment.
Additional liquidity is provided by an $800 million asset-based
revolving credit facility (ABL facility) expiring in March 2028 and
a $800 million cash flow revolving credit facility expiring in
January 2030. Moody's expect both of these facilities to be undrawn
when the transaction closes (although there are $47 million of
letters of credit against the ABL facility).
These figures are calculated excluding the earnings impact of
Section 45X tax credits that Moody's believe Clarios will likely
receive over the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Excluding Section 45X tax credits, the ratings could be upgraded
with consistent improvement in cash flow and continued debt
reduction. More specifically the ratings could be upgraded if
debt-to-EBITDA sustains below 5.5x and EBITDA-to-interest sustains
above 2.5x. The ratings could also be upgraded with sufficient
evidence that Clarios is eligible for annual tax credits in
relation to its domestic battery manufacturing operations under
Section 45X of the Internal Revenue Code; and a balanced financial
policy with prudent deployment of cash from Section 45X tax
credits.
Excluding Section 45X tax credits, the ratings could be downgraded
if revenue or profitability declines such that debt-to-EBITDA is
sustained above 6.5x. Further, an adverse development involving
environmental liabilities or deteriorating liquidity could result
in a ratings downgrade.
The principal methodology used in these ratings was Automotive
Suppliers published in December 2024.
Headquartered in Glendale, WI, Clarios Global LP is a global
supplier of low-voltage automotive batteries for virtually every
type of passenger car, light truck and utility vehicle. About 70%
of volume is traditional starting, light and ignition (SLI)
lead-acid batteries, while roughly 30% is advanced battery
technologies to power start-stop, hybrid and electric vehicles.
Revenue for the twelve months ended September 30, 2024 was
approximately $10.6 billion. Clarios has been owned by affiliates
of Brookfield Business Partners L.P. and other institutional
partners including Caisse de dépôt et placement du Québec.
CLASSICAL CHARTER: Moody's Affirms 'Ba2' Rating on Revenue Bonds
----------------------------------------------------------------
Moody's Ratings has affirmed the Ba2 rating on Classical Charter
Schools of America, Inc., NC's (CCSA - formerly Charter Day School
Inc.) revenue bonds. The school had approximately $36 million in
debt outstanding as of fiscal 2024. The outlook is stable.
RATINGS RATIONALE
The Ba2 rating reflects increasing per pupil funding, which
resulted in solid debt service coverage levels above 2x in 2024,
although the school projects a decline to 1.2x in 2025, driven by
weak enrollment trends. Total revenue of over $34 million and
enrollment of over 2,300 students provides the school some
operating flexibility. However, enrollment has weakened modestly
over the past 2 years and the waitlist dropped to a low 2% of Fall
2024 enrollment despite competitive academic scores. While cash
levels grew in fiscal 2024, cash on hand remained a modest 62 days.
The school is highly leveraged, but has no additional debt plans.
RATING OUTLOOK
The stable outlook reflects the likelihood that the school will
maintain adequate operating performance despite liquidity and
enrollment weakness.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
-- Significantly improved liquidity over 100 days cash on hand
-- Sustained strengthening of operating performance and debt
service coverage
-- Evidence of improvement in student demand including the
achievement of enrollment targets, a growing waitlist and improved
student retention
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
-- Further weakening of liquidity to below 60 days cash on hand or
debt service coverage to below 1.3x
-- Inability to meet enrollment targets or other evidence of
deterioration of the school's competitive profile
-- Additional debt issuance without strengthened reserves or
operating cash flow
LEGAL SECURITY
Bonds are secured by lease payments from CCSA, the sole member of
the obligated schools, to Columbus Charter LLC, Southport Charter
LLC, and Leland Charter LLC. CCSA has entered into a Loan Agreement
with the Public Finance Authority (the issuer), which has assigned
its interest in the lease with CCSA to the trustee. The leases,
which are long-term and non-contingent, support the credit quality
of CCSA's revenue bonds. Payments are unconditional, sourced from
all available funds, and secured by rights to the mortgaged
estate.
PROFILE
CCSA oversees Leland LLC, Southport LLC, and Columbus LLC, which
lease properties for Classical Charter Schools in Leland,
Southport, and Whiteville, NC. These schools, part of CCSA's
network since its 2021 rebranding to reflect its classical
curriculum, focus on growth and expansion. Managed by the
for-profit the Robert Bacon Academy Inc., CCSA operates three K-8
campuses and one K-5 campus, with three under obligated group
charters expiring between 2025 and 2029. As of Fall 2024, the
obligated group served 2,359 students, excluding the Wilmington
campus, which is not part of the obligated group but is within the
CCSA network.
METHODOLOGY
The principal methodology used in this rating was US Charter
Schools published in April 2024.
CM WIND: Egan-Jones Retains CCC+ Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company on December 20, 2024, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by CM Wind Down Topco Inc. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Atlanta, Georgia, CM Wind Down Topco Inc. operates
as a radio broadcasting company.
CMS ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on December 18, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by CMS Energy Corporation.
Headquartered in Jackson, Michigan, CMS Energy Corporation is an
energy company.
COHERENT CORP: Egan-Jones Retains BB- Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on December 16, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Coherent Corp. EJR also withdrew its rating on
commercial paper issued by the Company.
Headquartered in Saxonburg, Pennsylvania, Coherent Corp. designs
engineered materials and optoelectronic components.
COMINAR REAL: DBRS Gives BB(high) to Senior Unsecured Debentures
----------------------------------------------------------------
DBRS Limited assigned a rating of BB (high) with a Negative trend
to the 7.80% CAD $150 million Series 13 Senior Unsecured Debentures
due December 18, 2027 (the Debentures) issued by Cominar Real
Estate Investment Trust (Cominar or the Trust). The credit rating
assigned to this debt instrument is based on the ratings of
already-outstanding debt series of the above-mentioned debt
instrument.
Morningstar DBRS understands that the Debentures will be direct
senior unsecured obligations of the REIT and will rank equally and
rateably with one another and with all other unsecured and
unsubordinated Indebtedness of the REIT, except to the extent
prescribed by law. The Debentures will be unconditionally
guaranteed, jointly and severally (solidarily), by certain of the
REIT's Subsidiaries (collectively, the "Guarantors"), and each
Subsidiary of the REIT that becomes a guarantor under the
Thirteenth Supplemental Indenture in each case until such Person is
released, from its obligations under its Guarantee of the
Debentures.
Morningstar DBRS acknowledges that each Guarantee will rank pari
passu with all other existing and future senior unsecured
Indebtedness of such Guarantor and senior in right of payment to
any future subordinated Indebtedness of such Guarantor. Each
Guarantee will be effectively subordinated to all secured
Indebtedness of the relevant Guarantor to the extent of the value
of the assets securing such secured Indebtedness. Morningstar DBRS
understands that the net proceeds from the offering will be used
for the repayment of the $149.1 million aggregate principal amount
of Series 12 Senior Unsecured Debentures due May 5, 2025.
Notes: All figures are in Canadian dollars unless otherwise noted.
COMMSCOPE HOLDING: Moody's Puts 'Caa2' CFR on Review for Upgrade
----------------------------------------------------------------
Moody's Ratings placed CommScope Holding Company, Inc.'s ratings on
review for upgrade, including its Caa2 corporate family rating and
Caa3-PD probability of default rating. The senior secured notes
rated B3 and the senior unsecured notes rated Ca at CommScope's
subsidiary, CommScope, Inc. and the backed senior unsecured notes
at CommScope's other subsidiary, CommScope Technologies LLC rated
Ca, were also placed on review for upgrade. Previously, the outlook
was negative.
These rating actions follow the issuance of a new $3,150 million
senior secured term loan due 2029 (not rated) and $1,000 million of
9.5% senior secured notes due 2031 (not rated). Proceeds from the
debt issuance and the previously announced sale of the company's
Outdoor Wireless Networks ("OWN") segment and Distributed Antenna
Systems ("DAS") business to Amphenol Corporation for $2.1 billion,
will be used to repay the company's near term debt. The senior
unsecured notes due in 2025 and the senior secured term loan due
2026 have been repaid. The senior secured notes due 2026 and a
ratable repayment of a portion of the senior secured notes due in
2029 will be repaid after the asset sale is completed.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
CommScope's ratings were placed on review for upgrade as the
transactions allow the company to address all near term debt
maturities and provide additional time to reduce the company's
extremely high leverage levels (over 11x pro forma for the impact
of the pending OWN and DAS asset sale, including Moody's lease
adjustments), although interest rates will increase significantly
as a result of the transaction. Improved industry demand is likely
to lead to higher operating performance and lower leverage levels,
although results will remain sensitive to economic conditions and
changes in customer infrastructure spending levels. The increase in
the level of secured debt in the capital structure has the
potential to lead to rating notching implications.
CommScope Holding Company, Inc., headquartered in Claremont, NC, is
the holding company for CommScope LLC, a supplier of connectivity
and infrastructure solutions for the wireless industry, telecom
service and cable service providers as well as the enterprise
market. CommScope acquired ARRIS, one of the largest providers of
equipment to the cable television and broadband industries, in
2019. CommScope spun off the Home Network business in 2024.
Reported revenue was approximately $5.1 billion LTM Q3 2024.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
CREPERIE D AMOUR: Court Extends Use of Cash Collateral to Jan. 15
-----------------------------------------------------------------
Creperie D Amour Inc. received interim approval from the U.S.
Bankruptcy Court for the Northern District of Illinois, Eastern
Division, to use cash collateral until Jan. 15.
The interim order signed by Judge Donald Cassling on Jan. 8
authorized the company to use the cash collateral of Credibly of
Arizona, LLC and the U.S. Small Business Administration to pay its
operating expenses pursuant to its monthly budget.
The monthly budget shows total operating expenses of $86,652.22 for
the interim period.
Credibly of Arizona and SBA were granted a replacement lien on the
cash collateral as adequate protection.
About Creperie D Amour
Creperie D Amour, Inc., doing business as Paris Bistro, owns and
operates a restaurant business in Naperville, Ill.
Creperie D Amour filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-05158) on April
9, 2024, with $231,539 in assets and $1,517,684 in liabilities.
Jonathan Santos, president of Creperie D Amour, signed the
petition.
Judge Donald R. Cassling presides over the case.
The Debtor is represented by Penelope N. Bach, Esq., at Bach Law
Offices.
DEALER ACCESSORIES: Judy Wolf Weiker Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Region 10 appointed Judy Wolf Weiker of
Manewitz Weiker Associates, LLC as Subchapter V trustee for Dealer
Accessories, LLC.
Ms. Weiker will be paid an hourly fee of $375 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Weiker declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Judy Wolf Weiker
Manewitz Weiker Associates, LLC
P.O. Box 40185
Indianapolis, IN 46240
Phone: 973-768-2735
Email: JWWtrustee@manewitzweiker.com
About Dealer Accessories
Dealer Accessories, LLC, doing business as ClearBra Indy, offers
paint protection film designs, professional installations, and
customer service. It is based in Carmel, Ind.
Dealer Accessories sought Chapter 11 protection (Bankr. S.D. Ind.
Case No. 21-03197) on July 12, 2021, with between $100,000 and
$500,000 in assets and between $1 million and $10 million in
liabilities. Kyle Owen, president of Dealer Accessories, signed the
petition.
Judge James M. Carr presides over the case.
Meredith R. Theisen, Esq., at Rubin & Levin, PC serves as the
Debtor's legal counsel.
DIABETES CARE: Starts Subchapter V Bankruptcy Protection
--------------------------------------------------------
On January 9, 2025, Diabetes Care Group Management filed Chapter
11 protection in the U.S. Bankruptcy Court for the Middle District
of Tennessee.
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 Diabetes Care Group Management
Diabetes Care Group Management operating as DCGM, Inc., is a
Nashville-based healthcare management company providing population
health and diabetes care management services through its Vigilant
Health platform.
Diabetes Care Group Management sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Case No. 25-00103) on
January 9, 2025. In its petition, the Debtor reports estimated
assets and liabilities up to $50,000 each.
Robert J. Gonzales of EmergeLaw, PLC, represents the Debtor as
counsel.
DIGITAL ALLY: Reports $5.47 Million Net Loss in Q3 2024
-------------------------------------------------------
Digital Ally, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $5,470,712 on $4,051,711 of total revenue for the three months
ended September 30, 2024, compared to a net loss of $3,679,043 on
$6,337,699 of total revenue for the three months ended September
30, 2023.
For the nine months ended September 30, 2024, the Company reported
a net loss of $14,424,531 on $15,197,297 of total revenue, compared
to a net loss of $17,979,171 on $22,314,519 of total revenue for
the same period in 2023.
As of September 30, 2024, the Company had $32,263,169 in total
assets, $34,711,479 in total liabilities, and $2,448,310 in total
stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/y49vzd8r
About Digital Ally
Headquartered in Lenexa, KS, the business of Digital Ally (NASDAQ:
DGLY) through its subsidiaries, is divided into three reportable
operating segments: 1) the Video Solutions Segment, 2) the Revenue
Cycle Management Segment and 3) the Entertainment Segment. The
Video Solutions Segment is the Company's legacy business that
produces digital video imaging, storage products, disinfectant and
related safety products for use in law enforcement, security and
commercial applications. This segment includes both service and
product revenues through its subscription models offering cloud and
warranty solutions, and hardware sales for video and health safety
solutions. The Revenue Cycle Management Segment provides working
capital and back-office services to a variety of healthcare
organizations throughout the country, as a monthly service fee. The
Entertainment Segment acts as an intermediary between ticket buyers
and sellers within the Company's secondary ticketing platform,
ticketsmarter.com, and the Company also acquires tickets from
primary sellers to then sell through various platforms. For
additional news and information please visit www.digitalally.com
New York, NY-based RBSM LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated April 1,
2024, citing that the Company has incurred substantial operating
losses and will require additional capital to continue as a going
concern. This raises substantial doubt about the Company's ability
to continue as a going concern.
DIGITAL MEDIA: Trustee Objects to Plan Over 3rd Party Releases
--------------------------------------------------------------
Yun Park of Law360 Bankruptcy Authority reports that the Office of
the U.S. Trustee has asked a Texas bankruptcy court to deny Digital
Media Solutions' proposed Chapter 11 plan, asserting that its
inclusion of nonconsensual third-party releases violates the
Bankruptcy Code and contravenes the U.S. Supreme Court's recent
ruling in the Purdue Pharma case.
About Digital Media Solutions
Founded in 2012, Digital Media Solutions, Inc. is a
technology-enabled digital advertising company in Clearwater, Fla.,
that leverages its advanced technology and proprietary customer
data to efficiently and effectively connect its customers with
their target consumers. As of Sept. 11, 2024, DMS and its
affiliates operate in at least 15 countries and territories around
the world and employ 247 individuals in the United States and
Canada.
Digital Media Solutions and 36 affiliates commenced voluntary
Chapter 11 proceedings (Bankr. N.D. Tex. Lead Case No. 24-90468) on
Sept. 11, 2024. At the time of the filing, Digital Media Solutions
reported $100 million to $500 million in both assets and
liabilities.
Judge Alfredo R. Perez oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Porter Hedges, LLP as
legal counsel; Portage Point Partners as restructuring advisor; and
Houlihan Lokey Capital, Inc. as investment banker. Omni Agent
Solutions is the claims agent.
DOMINO'S PIZZA: Egan-Jones Retains BB- Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on December 20, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Domino's Pizza, Inc. EJR also withdrew its rating
on commercial paper issued by the Company.
Headquartered in Ann Arbor, Michigan, Domino's Pizza, Inc. operates
a network of company-owned and franchise Domino's Pizza stores,
located throughout the United States and in other countries.
ELETSON HOLDINGS: Owners Seek Refund of Reed Smith's Ch. 11 Fees
----------------------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that
reorganized international shipping company Eletson Holdings Inc.
has asked a New York bankruptcy judge to compel Reed Smith to
return the fees it was paid for representing the company in its
Chapter 11 case.
Eletson claims the law firm "deliberately concealed" its concurrent
representation of Eletson's former officers, a conflict it argues
diminished value for creditors during the case.
About Eletson Holdings
Eletson Holdings Inc. is a family-owned international shipping
company, which touts itself as having a global presence with
headquarters in Piraeus, Greece as well as offices in Stamford,
Connecticut, and London.
At one time, Eletson claimed to own and operate one of the world's
largest fleets of medium and long-range product tankers and boasted
a fleet consisting of 17 double hull tankers with a combined
capacity of 1,366,497 dwt, 5 LPG/NH3 carriers with a combined
capacity of 174,730 cbm and 9 LEG carriers with capacity of 108,000
cbm.
Eletson Holdings, a Liberian company, is Eletson's ultimate parent
company and is the direct parent and owner of 100% of the equity
interests in the two other debtors, Eletson Finance (US) LLC, and
Agathonissos Finance LLC.
Eletson and its two affiliates were subject to involuntary Chapter
7 bankruptcy petitions (Bankr. S.D.N.Y. Case No. 23-10322) filed on
March 7, 2023 by creditors Pach Shemen LLC, VR Global Partners,
L.P. and Alpine Partners (BVI), L.P. The petitioning creditors are
represented by Kyle J. Ortiz, Esq., at Togut, Segal & Segal, LLP.
On Sept. 25, 2023, the Chapter 7 cases were converted to Chapter
11
cases.
The Honorable John P. Mastando, III is the case judge.
Derek J. Baker, Esq., represents the Debtors as bankruptcy
counsel.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors. The committee tapped Dechert, LLP as its legal
counsel.
EMERGENT BIOSOLUTIONS: U.S. DoD to Get $20M BioThrax Vaccine Supply
-------------------------------------------------------------------
Emergent BioSolutions Inc. announced the exercise of contract
option and modification valued at approximately $20 million to
supply BioThrax (Anthrax Vaccine Adsorbed) to the U.S. Department
of Defense (DoD). The first delivery, which was valued at
approximately $7 million began in December 2024, and remaining
deliveries are expected in 2025.
"We're pleased to continue our work with the U.S. Department of
Defense to supply BioThrax to protect our nation's service members
who have a high risk of exposure to anthrax," said Paul Williams,
senior vice president, products head at Emergent. "This
procurement ensures a continued supply of this important medical
countermeasure to the U.S. military and demonstrates our commitment
to delivering solutions that address our customers' needs to
prepare for public health threats."
This option is under Emergent's existing indefinite-delivery,
indefinite-quantity (IDIQ) procurement contract (W911SR24D0001)
with the DoD and led by the Joint Program Executive Office for
Chemical, Biological, Radiological and Nuclear Defense to supply
BioThrax for use by all branches of the U.S. military as
pre-exposure prophylaxis (PrEP) for anthrax disease.
On Dec. 16, 2024, Emergent announced a $50 million contract option
from the Biomedical Advanced Research and Development Authority
(BARDA) to procure doses of CYFENDUS (Anthrax Vaccine Adsorbed,
Adjuvanted). In addition to BioThrax and CYFENDUS, Emergent's
anthrax franchise includes two treatments, Anthrasil [Anthrax
Immune Globulin Intravenous (Human)], a polyclonal antibody
therapeutic, and raxibacumab, a monoclonal antibody therapeutic.
About Emergent Biosolutions
Headquartered in Gaithersburg, Md., Emergent Biosolutions Inc. is a
global life sciences company focused on providing innovative
preparedness and response solutions addressing accidental,
deliberate, and naturally occurring public health threats. The
Company's solutions include a product portfolio, a product
development portfolio, and a contract development and manufacturing
services portfolio.
Tysons, Virginia-based Ernst & Young LLP, the Company's auditor
since 2004, issued a "going concern" qualification in its report
dated March 8, 2024. The auditor emphasizes that the Company does
not expect to be in compliance with debt covenants in future
periods without additional sources of liquidity or future
amendments to its Senior Secured Credit Facilities and has stated
that substantial doubt exists about the Company's ability to
continue as a going concern.
EMX ROYALTY: Completes 5M Share Normal Course Issuer Bid Program
----------------------------------------------------------------
EMX Royalty Corporation confirmed on January 8 that it has
completed its existing Normal Course Issuer Bid ("NCIB") program,
which was initially disclosed on Feb. 7, 2024. Under the NCIB, the
Company was allowed to purchase for cancellation up to 5,000,000
common shares over a twelve-month period representing approximately
4.45% of the issued and outstanding shares prior to commencement.
EMX has purchased for cancellation the full 5,000,000 common shares
at an average price of US$1.65 per share totaling approximately
US$8.3M including a recently purchased 1,375,600 shares in a block
trade from an undisclosed seller at a price of approximately
US$1.64 (C$2.35) per share.
About EMX
EMX Royalty Corporation -- https://emxroyalty.com/ -- is a precious
and base metals royalty company. EMX's investors are provided with
discovery, development, and commodity price optionality while
limiting exposure to risks inherent to operating companies. The
Company's common shares are listed on the NYSE American Exchange
and TSX Venture Exchange under the symbol "EMX."
Vancouver, Canada-based Davidson & Company LLP, the Company's
auditor since 2002, issued a "going concern" qualification in its
report dated March 21, 2024, citing that the Company has a working
capital deficiency that raises substantial doubt about its ability
to continue as a going concern.
ENGELMANN REAL: Seeks Chapter 11 Bankruptcy Protection in Nevada
----------------------------------------------------------------
On January 9, 2025, Engelmann Real Estate Holdings LLC filed
Chapter 11 protection in the U.S. Bankruptcy Court for
the District of Nevada.
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 Engelmann Real Estate Holdings LLC
Engelmann Real Estate Holdings LLC is a Las Vegas-based real estate
company, operates from its principal location at 6600 W Charleston
Blvd with property assets at 5710 E Tropicana Ave.
Engelmann Real Estate Holdings LLC sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-10082) on
January 9, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $100,000 and $500,000 each.
David A. Riggi, Esq. of RIGGI LAW FIRM represents the Debtor as
counsel.
ENTEGRIS INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on December 4, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Entegris, Inc. EJR also withdrew its rating on
commercial paper issued by the Company.
Headquartered in Billerica, Massachusetts, Entegris, Inc. provides
materials management products and services to the microelectronics
industry on a worldwide basis.
EPIC Y-GRADE: S&P Places 'B-' ICR on Watch Pos. on Acquisition
--------------------------------------------------------------
On Jan. 6, 2025, Phillips 66 (PSX) announced it had entered into a
definitive agreement to acquire 100% ownership of Epic Y-Grade GP
LLC and Epic Y-Grade L.P., which wholly owns Epic Y-Grade Services
L.P. (Epic Y-Grade).
Therefore, we placed all of our ratings on Epic Y-Grade, including
the 'B-' issuer credit rating and 'B-' issue-level rating on its
senior secured debt, on CreditWatch with positive implications.
The CreditWatch placement reflects that we could raise our ratings
on Epic Y-Grade by multiple notches to align them with our
potential ratings on PSX. We anticipate resolving the CreditWatch
around the close of the proposed acquisition.
NEW YORK (S&P Global Ratings) Jan. 9, 2025
S&P Global Ratings placed all of its ratings on Epic Y-Grade
Services L.P. (Epic Y-Grade), including the 'B-' issuer credit
rating and 'B-' issue-level rating on its senior secured debt, on
CreditWatch with positive implications.
S&P said, "The CreditWatch placement reflects that we could raise
our ratings on Epic Y-Grade by multiple notches to align them with
our potential ratings on PSX. We anticipate resolving the
CreditWatch around the close of the proposed acquisition."
On Jan. 6, 2025, Phillips 66 (PSX) announced it had entered into a
definitive agreement to acquire 100% ownership of Epic Y-Grade GP
LLC and Epic Y-Grade L.P., which wholly owns Epic Y-Grade Services
L.P. (Epic Y-Grade).
S&P said, "PSX announced it has agreed to acquire 100% ownership of
Epic Y-Grade GP LLC and Epic Y-Grade L.P., which would make Epic
Y-Grade a wholly owned subsidiary of PSX. We expect that we will
view Epic Y-Grade as a core subsidiary of PSX and, therefore,
equalize our ratings on Epic Y-Grade with our ratings on PSX. To
reflect this, we placed our ratings on Epic Y-Grade on CreditWatch
with positive implications.
"The CreditWatch positive placement reflects that we could raise
our ratings on Epic Y-Grade by multiple notches to align them with
our prospective ratings on PSX. We expect to resolve the
CreditWatch around the close of the transaction."
Epic Y-Grade owns and operates a 700-mile Y-grade pipeline from the
Permian and Eagle Ford basins to Corpus Christi, Texas. The
partnership also owns and operates two operational Y-grade
fractionators, both in Corpus Christi.
ETC SUNOCO: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on December 4, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by ETC Sunoco Holdings LLC. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Philadelphia, Pennsylvania, ETC Sunoco Holdings
LLC distributes gasoline products.
FAMILY SOLUTIONS: Seeks to Extend Plan Exclusivity to March 4
-------------------------------------------------------------
Family Solutions of Ohio, Inc. asked the U.S. Bankruptcy Court for
the Eastern District of North Carolina to to extend its exclusivity
periods to file a plan of reorganization and obtain acceptance
thereof to March 4 and May 3, 2025, respectively.
The Debtor requests that the period in which it has the exclusive
right to file a Plan of Reorganization under Section 1121(b) of the
Bankruptcy Code and the acceptance period under Section 1121(c)(3)
of the Bankruptcy Code be extended for a period of approximately
sixty days.
The Debtor explains that an order allowing the extensions as
requested in this application will not prejudice any party and is
in the best interests of the Estate and all parties in interest.
Family Solutions of Ohio, Inc. is represented by:
Jason L. Hendren, Esq.
Rebecca F. Redwine, Esq.
Benjamin E.F.B. Waller, Esq.
Lydia C. Stoney, Esq.
Hendren Redwine & Malone, PLLC
4600 Marriott Drive, Suite 150
Raleigh, NC 27612
Tel: (919) 573-1422
Fax: (919) 420-0475
Email: jhendren@hendrenmalone.com
rredwine@hendrenmalone.com
bwaller@hendrenmalone.com
lstoney@hendrenmalone.com
About Family Solutions of Ohio
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 serves as the Debtor's legal
counsel.
FEYNMAN SCHOOL: Files Chapter 7 Bankruptcy in Maryland
------------------------------------------------------
Ana Lucía Murillo of Washington Business Journal reports that a
Rockville-based private school serving students from preschool
through 8th grade has closed and filed for Chapter 7 bankruptcy.
According to the report, the Feynman School Inc. submitted a
voluntary bankruptcy petition in the U.S. Bankruptcy Court for the
District of Maryland on December 17, 2024, public records show. The
school reported $62,953 in assets and $458,879.18 in liabilities,
with an estimated 50 to 99 creditors.
As per the bankruptcy filings, Feynman School operated at 6125
Montrose Road under a license agreement with The Bender Jewish
Community Center of Greater Washington (Bender JCC). The JCC
confirmed that the school ceased operations and halted classes as
of December 13, 2024.
Bender JCC, which also operates an early childhood education
center, a 40,000-square-foot fitness center, and a 290-seat
theater, welcomed Feynman for the fall 2023 semester. Previously,
Feynman had listed its address as 11810 Falls Rd. in Potomac from
2017 to 2020, and as 6300 Tilden Lane in North Bethesda from 2021
to 2022.
Recent LinkedIn posts reveal the school was planning an open house
for prospective parents as recently as November. At the time of
closure, it also had two active job listings -- one for a part-time
middle school band teacher and another for a lead second-grade
teacher. A holiday fundraiser in December raised $412.50 from 28
donors.
Under Chapter 7 bankruptcy, the school's assets will be liquidated,
and proceeds will be distributed to creditors. Among its largest
creditors are private individuals, along with $60,000 owed in rent
to Bender JCC and similar amounts due to credit card companies and
vendors.
Companies filing for Chapter 7 bankruptcy typically cease
operations, leaving the future of Feynman School uncertain. Neither
the school nor its co-founder and head, Susan Gold, responded to
requests for comment.
Founded in 2009 by Susan Gold and Executive Director Robert Gold,
Feynman School specialized in STEM and project-based learning for
gifted students, with class sizes ranging from 14 to 18 students.
The school was named after Nobel Prize-winning physicist Richard
Feynman.
However, in recent years, the school's expenses have exceeded
revenue. For fiscal year 2023, the school reported a net loss of
$236,004, with revenue from program services declining from $2.2
million in 2022 to $1.5 million in 2023, according to its latest
tax filings.
About Feynman School Inc.
Feynman School Inc. is a Rockville-based private school serving
students from preschool through 8th grade.
Feynman School Inc. sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 24-20635) on December 17,
2024. In its petition, the Debtor reports $62,953 in assets and
$458,879.18 in liabilities.
Honorable Bankruptcy Judge Maria Ellena Chavez-Ruark presides over
the case.
Steven L. Goldberg of Mcnamee Hosea represents the Debtor as
counsel.
FIDELITY NATIONAL: Egan-Jones Retains BB+ Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on December 19, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Fidelity National Information Services, Inc. EJR
also withdrew its rating on commercial paper issued by the
Company.
Headquartered in Jacksonville, Florida, Fidelity National
Information Services, Inc. is a payment services provider.
FIRST MODE: U.S. Trustee Slams Stalking Horse Bid Protections
-------------------------------------------------------------
Clara Geoghegan of Law360 reports that the Office of the U.S.
Trustee has called for scaling back bid protections proposed for
the stalking horse bidder in the bankruptcy case of electric-engine
developer First Mode.
The Trustee urged a Delaware bankruptcy judge to deny the debtor's
request to grant priority claim status for expenses and fees
associated with the $15 million bid, the report states.
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.
FLUOR CORP: Egan-Jones Hikes Senior Unsecured Ratings to BB
-----------------------------------------------------------
Egan-Jones Ratings Company on December 2, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Fluor Corporation to BB from BB-. EJR also withdrew
its rating on commercial paper issued by the Company.
Headquartered in Irving, Texas, Fluor Corporation provides oil and
gas infrastructure construction services.
FREIRICH FOODS: Gets OK to Use Cash Collateral Until March 21
-------------------------------------------------------------
Freirich Foods, Inc. received interim approval from the U.S.
Bankruptcy Court for the Middle District of North Carolina to use
cash collateral until March 21, marking the seventh extension since
the company's Chapter 11 filing.
The court previously issued an order, allowing the company to
access cash collateral until Jan. 10 only.
The seventh interim order, signed by Judge Benjamin Kahn on Jan. 7,
approved the use of cash collateral for payment of expenses set
forth in the company's budget.
As adequate protection for the use of its cash collateral, First
National Bank of Pennsylvania will receive payments as follows: (i)
net sale proceeds derived at closing from the cash portion of the
purchase price for Freirich Foods' assets and from collection of
accounts receivable in the amount of $3 million; and (ii) continued
monthly payments on or before the last day of each month in an
aggregate amount equal to interest accruing during the prior month
at the contract rate on the outstanding principal balance of the
bank's secured claim.
FNB reserves the right to seek further or additional adequate
protection of its collateral, assert objections to the company's
further use of its cash collateral, or pursue any other rights or
remedies available to it.
The bankruptcy court's Jan. 7 order remains in full force and
effect until the effective date of any confirmed Chapter 11 plan;
entry of an order modifying the terms of the Jan. 7 order;
termination of Freirich Foods' right to use cash collateral; or
dismissal or conversion of the company's Chapter 11 case to one
under Chapter 7.
The next hearing is scheduled for March 18.
FNB can be reached through its attorneys:
Matthew P. Weiner, Esq.
Stephanie E. Goodbar, Esq.
Poyner Spruill, LLP
P.O. Box 1801
Raleigh, NC 27602-1801
Telephone: (919) 783-6400
mweiner@poynerspruill.com
sgoodbar@poynerspruill.com
About Freirich Foods
Freirich Foods, Inc. is a deli meat processor that produces dry
open-oven roasted products. It has been supplying specialty meats
to select grocers and delis since 1921. Although initially opened
in New York, the business is headquartered in Salisbury, N.C.,
today and has been managed by four generations of the Freirich
family.
Freirich Foods sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-50204) on March 20,
2024, with $13,015,005 in assets and $14,524,627 in liabilities.
Paul Bardinas, president of Freirich Foods, signed the petition.
Judge Benjamin A. Kahn oversees the case.
The Debtor tapped John A Northen, Esq., at Northen Blue, LLP as
legal counsel and The Finley Group, Inc. as financial advisor.
FTX TRADING: Disputes Completion of EU Asset Sale to Ex-Employees
-----------------------------------------------------------------
Muyao Shen of Bloomberg News reports that the ownership of the
European division of Sam Bankman-Fried's former crypto enterprise
appeared settled as Dubai-based Backpack Exchange announced its
acquisition of FTX EU after months of negotiations.
Backpack, a crypto trading platform founded by former employees of
FTX and Alameda Research, revealed that the $32.7 million purchase
would bolster its derivatives offerings in the region, according to
report.
The FTX estate argued that FTX Europe AG, a subsidiary of FTX,
maintains full ownership, as the share transfer to co-founders
Patrick Gruhn and Robin Matzke has not yet been finalized, the
report states.
Backpack contends that the sale to the co-founders was completed in
May, including payments made to the FTX bankruptcy estate, and
points to approval from the Cyprus Securities and Exchange
Commission as evidence of the transaction's legitimacy.
Gruhn confirmed the sale to Backpack, stating that his legal
representative informed FTX of the approval earlier this week.
However, he has yet to receive a response, and a spokesperson for
FTX declined to offer further comment.
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.
GAVIN SPANIERMAN: Yann Geron Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 2 appointed Yann Geron, Esq., at Geron
Legal Advisors, LLC as Subchapter V trustee for Gavin Spanierman
Ltd.
Mr. Geron will be paid an hourly fee of $895 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Geron declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Yann Geron, Esq.
Geron Legal Advisors, LLC
370 Lexington Avenue, Suite 1101
New York, NY 10017
Phone: (646) 560-3224
Email: ygeron@geronlegaladvisors.com
About Gavin Spanierman Ltd.
Gavin Spanierman Ltd. operates as Spanierman Modern, an art gallery
located at 958 Madison Avenue in New York City.
Gavin Spanierman filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10005) on January
3, 2025. In its petition, the Debtor reported 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.
GEORGE WESTON: Egan-Jones Retains BB+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on December 4, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by George Weston Limited. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Toronto, Canada, George Weston Limited operates as
a super market.
GRAFTECH FINANCE: Moody's Appends 'LD' Designation to 'Caa1-PD' PDR
-------------------------------------------------------------------
Moody's Ratings affirmed GrafTech Finance, Inc.'s Corporate Family
Rating of Caa1. Concurrently, Moody's affirmed the Caa1-PD
Probability of Default Rating and appended a limited default (LD)
designation, changing it to Caa1-PD/LD from Caa1-PD following
completion of the debt exchange transaction. The PDR will be
revised to Caa1-PD in about three business days.
Moody's assigned a B2 rating to the new money backed senior secured
first lien term loans issued by GrafTech Global Enterprises Inc.,
and a Caa2 rating to the new exchanged senior secured second lien
notes – 4.625% notes due 2029 issued by GrafTech Finance, Inc.,
and 9.875% notes due 2029 issued by GrafTech Global Enterprises
Inc.
The Caa1 rating on GrafTech's existing backed senior secured
revolving credit facility, which was amended and extended, has been
withdrawn.
The Caa1 ratings on the existing senior secured notes that did not
participate in the exchange – 4.625% notes due 2028 issued by
GrafTech Finance, Inc., and 9.875% notes due 2028 issued by
GrafTech Global Enterprises Inc. – have been withdrawn.
GrafTech's Speculative Grade Liquidity Rating ("SGL") was upgraded
to SGL-3 from SGL-4. The ratings outlook remains negative.
ESG considerations, specifically governance, was a key driver of
the rating action.
RATINGS RATIONALE
On December 23, GrafTech announced it closed on the previously
announced debt exchange and liquidity infusion transactions.
As part of the exchange transaction, a substantial amount of the
4.625% senior secured notes issued by GrafTech Finance, Inc. and
9.875% senior secured notes issued by GrafTech Global Enterprises
Inc. – both of which have a 2028 maturity – were exchanged into
new 4.625% and 9.875% second lien notes with a 2029 maturity, at
par. Additionally, the company received the requisite amount of
consents to allow them to eliminate substantially all covenants and
events of default and release the collateral securing the existing
senior secured notes due 2028, which did not participate in the
exchange.
As part of the liquidity infusion transaction, GrafTech issued a
new $175 million senior secured first lien term loan and obtained
commitments for a new $100 million senior secured delayed draw term
loan (available for 19 months from closing), both of which will
mature in 2029. The company also replaced its existing revolving
credit facility with a new $225 million revolving credit facility
with a November 2028 maturity (unrated). The new term loans and the
amended revolving credit facility are pari-passu.
While the transactions have improved GrafTech's liquidity and
pushed out the maturities by a year, they have increased the debt
burden on an already unsustainable cap structure, resulting in an
affirmation of the CFR.
The "/LD" designation reflects Moody's view that the debt exchange
was a distressed exchange, which is a default under Moody's
definition, given the priming of existing debt and Moody's view
that the capital structure was untenable. The "/LD" designation
will be removed in about three business days.
GrafTech's Caa1 CFR reflects its moderate scale, reliance on one
product (graphite electrodes) for the majority of its revenues that
is sold to the highly cyclical steel sector, dependence on a single
facility for the majority of its needle coke supply which exposes
it to potential operational disruptions, and the fact that its
earnings and credit metrics will remain very weak and its cash
flows negative in the near term. The rating also incorporates its
strong market position in the graphite electrode sector, its
internal needle coke supply which is a positive differentiator in
normalized pricing environments and the continuing gradual shift to
electric arc furnace (EAF) steel production.
GrafTech's operating performance began to materially weaken in 2H
2022 due to softening end market demand, higher energy costs and
the impact of the suspension of its Mexican production facility
which led to a significant loss of market share. Market conditions
deteriorated further in 2023 as graphite electrode producers in
India and China aggressively pursued market share while steel
production remained lackluster in most regions and led to customers
reducing electrode inventories. The company was also negatively
impacted by the winding down of its volumes covered under long term
agreements (LTAs) at much higher price levels. As a result,
GrafTech produced adjusted EBITDA of only $19 million in 2023
versus $542 million in 2022. In 2024, the company has seen a
gradual improvement in volumes and is working on reducing its
costs, although EBITDA is likely to be weak, around breakeven.
Looking forward to 2025, while capacity utilization is likely to
increase and costs will improve further, the roll-off of higher
priced LTAs will weigh on realized prices, resulting in only
modestly positive EBITDA.
The weak operating performance will also weigh on cash flow,
resulting in negative free cash flow of more than $100 million in
2024 and a similar performance in 2025. While the recently infused
liquidity does provide an improved liquidity runway to the company,
Moody's expect the company to draw on the DDTL in order to fund the
expected cash burn over the next 12-15 months.
GrafTech's speculative grade liquidity rating of SGL-3 reflects
adequate liquidity. The company had $141 million of cash and cash
equivalents at September 30, 2024. Proforma for the liquidity
infusion transaction, the cash balance would be $282 million. The
company has access to an additional $100 million under the delayed
draw term loan for a period of 19 months from closing. Moody's
expect the company to draw on this facility. The company has $112
million of availability under the amended $225 million revolving
credit facility, which remains undrawn with $3 million of LCs
outstanding. The availability is restricted by a springing net
first lien leverage ratio covenant of 4.0x at 51.3% utilization,
which the company currently does not meet and is not expected to
meet in the near-term. Following the recent amendments, the new
guarantors represent a greater proportion of the company's net
assets, thereby limiting alternate liquidity.
Terms for the new credit facilities include the following:
Incremental pari passu debt capacity up to $25 million. There is no
inside maturity sublimit. The credit agreement prohibits the
designation of unrestricted subsidiaries, preventing collateral
"leakage" to such subsidiaries. A blocker provision restricts the
sale or transfer of material intellectual property and material
real property to any subsidiary that is not a loan party. The
credit agreement provides limitations on up-tiering transactions,
requiring affected lender consents for amendments that
contractually subordinate the debt or liens unless such lenders can
ratably participate in such priming debt. The company cannot incur
debt, grant liens, make investments or dispositions in connection
with certain liability management transaction. The company has the
ability to sell a minority interest in its Seadrift facility, with
proceeds to be used to reinvest in Seadrift or repay debt. The
structure is portable subject to no Rating Decline condition.
The negative outlook reflects expectations for continued cash burn
in 2025, which would eat into the improved liquidity following the
infusion, along with the uncertainty related to the timing of a
market recovery and a return of the credit metrics to more
normalized levels.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings upside for GrafTech is limited by its reliance on a
single needle coke facility for the majority of its supply and its
focus on one product category that serves the highly cyclical steel
sector. However, an upgrade could be considered if the competitive
environment becomes more constructive and the company sustains a
leverage ratio (Debt/EBITDA) below 5.5x, an interest coverage ratio
(EBITDA/Interest) above 2.0x and retained cash flow above 7% of its
outstanding debt.
Moody's could downgrade GrafTech's ratings if the market recovery
takes longer than expected, resulting in its adjusted financial
leverage to be sustained above 7.0x, its interest coverage ratio
(EBITDA/Interest) below 1.0x, the company consistently produces
negative free cash flow or experiences a substantive deterioration
in liquidity. Total liquidity declining below $100 million could
lead to a downgrade.
GrafTech Finance, Inc. and GrafTech Global Enterprises Inc. are
wholly owned subsidiaries of GrafTech Holdings Inc., which in turn
is 100% owned by GrafTech International Ltd. GrafTech International
Ltd., headquartered in Brooklyn Heights, Ohio, is a manufacturer of
graphite electrodes and needle coke products. The company has about
178,000 metric tons of electrode capacity excluding its idled
facility in St. Mary's, Pennsylvania. GrafTech generated $542
million in revenues for the twelve months ended September 30,
2024.
The principal methodology used in these ratings was Chemicals
published in October 2023.
GROOMORE INC: Commences Subchapter V Bankruptcy Process
-------------------------------------------------------
On January 9, 2025, GrooMore Inc. sought Chapter 11 protection in
the U.S. Bankruptcy Court for the District of Delaware.
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 GrooMore Inc.
GrooMore Inc. based in Atlanta, GA, operates a cloud-based pet
grooming software platform providing scheduling, payment
processing, and business management solutions for pet grooming
businesses.
GrooMore Inc. sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10018) on January
9, 2025. In its petition, the Debtor reports estimated assets
between $100,000 and $500,000 and estimated liabilities between
$500,000 and $1 million.
Joseph C. Barsalona II of Pashman Stein Walder Hayden, P.C.
represents the Debtor as counsel.
H6 COMPANY: Seeks to Sell Vehicles in a Private Sale
----------------------------------------------------
H6 Company will seek permission from the U.S. Bankruptcy Court for
the Eastern District, Wilmington Division, at a hearing on February
10, 2025 at 12:30 p.m. to sell personal property by private sale
free and clear of liens and other interests.
Rebecca Redwine serves as the duly appointed Subchapter V Trustee.
The Debtor formerly operated as a custom home builder in Brunswick
County, North Carolina and ceased operations in April 2024.
The Debtor is seeking to sell unnecessary equipment to help repay
its creditors. The Debtor believes that the sale of the following
personal property via private sale is in the best interests of the
estate. The cost of selling the modest amount of equipment via a
public sale would be cost prohibitive for the estate.
The Debtor seeks approval to sell the following personal property:
-- 2018 McCormick 35HP Tractor and attachments (“Tractor”);
-- 1997 John Deere 120C excavator (“Excavator”);
-- 2002 equipment trailer (“Trailer”).
The Debtor is seeking to sell the Tractor and Trailer to Scott
Harden Builders, Inc., or its assigns, for payment to the estate of
$9,000.00. Scott Harden Builders, Inc. and those affiliated with it
are not related by blood or marriage to the Debtor and/or Michael
High.
The Debtor is additionally seeking to sell the Excavator to Chris
Lee, or his assigns, for payment to the estate of $4,000.00. Chris
Lee and those affiliated with him are not related by blood or
marriage to the Debtor and/or Michael High.
ODK Capital, LLC claims a lien on the Property.
Additionally, the Tractor was seized by the Brunswick County
Sheriff's Office pursuant to a pre-judgment order of attachment in
Brunswick County Superior Court file no. 24 CVS 1546. The Tractor
is currently stored with the Brunswick County Sheriff and is
currently subject to a possessory lien in the amount of $910.00
($10.00 per day storage since October 11, 2024), plus the towing
costs of $350.00. The purchaser of the Excavator will pay the
outstanding fees (storage and towing costs) the Brunswick County
Sheriff’s Office and shall have this amount credited towards the
purchase price paid to the Estate.
About H5 Company
H6 Company sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03976) on November 13,
2024, with $100,001 to $500,000 in assets and $1 million to $10
million in liabilities.
Judge David M. Warren presides over the case.
Richard Preston Cook, Esq., at Richard P. Cook, PLLC represents the
Debtor as legal counsel.
HELIX ENERGY: Egan-Jones Retains CCC+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on December 16, 2024, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Helix Energy Solutions Group, Inc. EJR also
withdrew its rating on commercial paper issued by the Company.
Headquartered in Houston, Texas, Helix Energy Solutions Group, Inc.
is an American oil and gas services company.
HIGHTOWER HOLDING: Moody's Rates New Secured Bank Loans 'B2'
------------------------------------------------------------
Moody's Ratings assigned a B2 rating to Hightower Holding, LLC's
proposed senior secured bank credit facility consisting of a senior
secured first lien term loan B and a senior secured revolving
credit facility. The proceeds will be used to refinance the
existing B2-rated senior secured term loan due 2028 which, as of
year end 2024, had $1,441 million outstanding. This rating action
does not affect Hightower's existing B3 corporate family rating,
Caa2 senior unsecured debt rating, or its stable outlook.
The refinancing transaction will raise the first lien term loan
principal to $1,450 million and extend its maturity to 2032.
Additionally, it will provide Hightower with a new 5-year $250
million senior secured revolving credit facility. The new credit
facility is covenant-lite and includes similar terms regarding
security, guarantors, and mandatory prepayments as the existing
credit agreement.
RATINGS RATIONALE
The B2 rating on the proposed senior secured credit facility is in
line with the existing senior secured credit facility rating and is
one notch above Hightower's B3 CFR, reflecting the facility's
priority ranking and size within the company's capital structure.
Hightower's B3 CFR reflects its growing position within the US
registered investment advisor space, strong organic growth, and
high recurring revenue. However, the rating is constrained by the
company's high debt leverage and weak interest coverage. For the
trailing 12 months ended September 30, 2024, Hightower's
debt-to-EBITDA, based on Moody's standard adjustments and proforma
for recent acquisitions, was 7.5x and EBITDA-to-interest expense
coverage ratio has remained steady at around 1.5x. The firm's
profitability has been weak due to higher interest expense and
ongoing transaction costs associated with its aggressive M&A
strategy.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An improvement in profitability and debt reduction that results in
Moody's-adjusted debt/EBITDA leverage ratio below 6.5x on a
sustained basis could result in an upgrade.
A deterioration in interest coverage from weaker cash flow and
EBITDA resulting in an EBITDA/interest expense ratio below 1.5x or
an erosion of the company's working capital position could lead to
a downgrade. Revenue deterioration due to a slowdown in organic
growth, client attrition, rising competition and fee compression,
underperformance of acquired firms, or sustained declines in broad
financial markets resulting in lower levels of client assets could
also trigger a downgrade. Moody's could also downgrade Hightower's
ratings if its debt/EBITDA leverage ratio trends sustainably above
8.0x.
The principal methodology used in these ratings was Securities
Industry Service Providers published in February 2024.
HILTON WORLDWIDE: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on December 11, 2024, maintained its
'BB' foreign currency and local currency senior unsecured ratings
on debt issued by Hilton Worldwide Holdings Inc. EJR also withdrew
its rating on commercial paper issued by the Company.
Headquartered in McLean, Virginia, Hilton Worldwide Holdings Inc.
operates as a holding company.
HNO INTERNATIONAL: Inks Share Exchange Deal with CEO
----------------------------------------------------
On January 2, 2025, HNO International, Inc., entered into a Share
Exchange Agreement with Donald Owens, the Company's CEO and
Chairman. Pursuant to the agreement, Mr. Owens exchanged
245,000,000 shares of the Company's common stock for 245,000 shares
of newly designated Series B Convertible Preferred Stock, the
Company disclosed in a Form 8-K filing with the U.S. Securities and
Exchange Commission.
On the same date, the Company entered into a Share Exchange
Agreement with HNO Green Fuels. Pursuant to the agreement, HNOGF
exchanged 115,000,000 shares of the Company's common stock for
115,000 shares of newly designated Series B Preferred Stock.
On January 2, 2025, in connection with the Share Exchange
Agreements, the Company will file a Certificate of Designation of
Series B Convertible Preferred Stock with the Nevada Secretary of
State that has the effect of designating 500,000 shares of
preferred stock, par value $0.001, as Series B Preferred Stock.
Voting Rights
Except as expressly provided in the Share Exchange Agreements or as
required by law, so long as any shares of Series B Preferred Stock
remain outstanding, the Corporation shall not, without the vote or
written consent of the holders of at least a majority of the then
outstanding shares of the Series B Preferred Stock, take any action
which would adversely and materially affect any of the preferences,
limitations or relative rights of the Series B Preferred Stock.
Other than the rights above, the holders of the Series B Preferred
Stock have no voting rights.
Liquidation
Upon the liquidation, dissolution or winding up of the business of
the Corporation, whether voluntary or involuntary, each holder of
Series B Preferred Stock shall be entitled to receive, for each
share thereof, out of assets of the Corporation legally available
therefor, a distribution pro rata with the Corporation's Common
Stock, $0.001 par value per share, calculated as if the Series B
had been converted into Common Stock as of the date immediately
prior to the date fixed for determination of stockholders entitled
to receive such distribution.
Conversion Rights
Each holder of Series B Preferred Stock may, from time-to-time,
convert any or all of such holder's shares of Series B Preferred
Stock into fully paid and non-assessable shares of Common Stock in
an amount equal to 1,000 shares of Common Stock for each share of
Series B Preferred Stock surrendered.
A full-text copy of the Form 8-K is available at
https://urlcurt.com/u?l=HDEjw4
About HNO International
Headquartered in Murrieta, California, HNO International, Inc., a
Nevada corporation, focuses on systems engineering design,
integration, and product development to generate green
hydrogen-based clean energy solutions to help businesses and
communities decarbonize in the near term.
Lakewood, CO-based BF Borgers CPA PC, the Company's former
auditor,
issued a "going concern" qualification in its report dated Jan.
29,
2024, citing that the Company has suffered recurring losses from
operations that raise substantial doubt about its ability to
continue as a going concern.
On May 7, 2024, it dismissed BF Borgers CPA, PC as its independent
accountant to audit the Company's financial statements, after the
firm and its owner, Benjamin F. Borgers, were charged by the
Securities and Exchange Commission with deliberate and systemic
failures to comply with Public Company Accounting Oversight Board
(PCAOB) standards in its audits and reviews incorporated in more
than 1,500 SEC filings from January 2021 through June 2023;
falsely
representing to their clients that the firm's work would comply
with PCAOB standards; fabricating audit documentation to make it
appear that the firm's work did comply with PCAOB standards; and
falsely stating in audit reports included in more than 500 public
company SEC filings that the firm's audits complied with PCAOB
standards. Borgers agreed to pay a $14 million civil penalty and
agreed to permanent suspensions from appearing and practicing
before the Commission as accountants, effective immediately.
On the same date, the Company's Board of Directors approved the
engagement of Barton CPA, an independent registered public
accounting firm, as the Company's new independent accountant to
audit the Company's financial statements and to perform reviews of
interim financial statements.
HOUSTON TRUCK: Claims to be Paid From Cash Flow
-----------------------------------------------
Houston Truck Wash & Lube, Inc. filed with the U.S. Bankruptcy
Court for the Southern District of Texas a Plan of Reorganization
under Subchapter V dated January 3, 2025.
The Debtor owns a truck wash that operates at 7821 Lyons Ave.,
Houston, Texas 77029. ("Truck Wash"). The Truck Wash leases the
real property on which it operates ("Lease").
Prior to the filing, the landlord indicated that it intended to
terminate the Lease. As a result, Houston Truck Wash filed this
chapter 11 to preserve the Lease and preserve the business of the
Truck Wash.
Houston Truck Wash values its assets at approximately $306,510.80,
in the aggregate, which includes accounts receivable of
approximately $12,000 on the filing date, inventory of
approximately $10,564, office furniture, fixtures and equipment of
approximately $18,675, and trucks of about $260,000. The schedules
of Houston Truck Wash show secured debts of approximately $463,921,
priority claims of $169.21, and unsecured claims of approximately
$298,393.
This Plan of Reorganization proposes to pay Debtor's creditors from
the cash flow generated in the ordinary course of the Debtor's
business after confirmation.
Class 11 consists of all other non-priority unsecured claims. The
aggregate amount of Class 11 claims is approximately $216,393.49.
Total of general unsecured claims without the disputed claims shall
be $84,298.81. This Class is impaired.
The Debtor will pay the projected disposable income following the
Effective Date during the term of the plan (for time periods
between 36 and 60 months) to creditors in this class with allowed
claims in the amount set forth on the projections with this plan;
provided that if the Debtor pays amounts due to the Class 7
creditor in full the Debtor may complete this plan earlier than 60
months after payments to the Class 7 creditor. Debtor may pay such
amounts quarterly starting with the first full calendar quarter
after the Effective Date. Unsecured creditors will get payments of
projected disposable income for a minimum of at least thirty-six
months following the Effective Date.
The equity security holders will retain the interest in the
Debtor.
The Debtor will retain the property of the bankruptcy estate. The
Debtor will make the payments as set forth in the Projections to
either the creditors or to the Subchapter V Trustee.
The net amount remaining after plan payments, if any, will be
placed in the Emergency/Reserve Fund. If funds remain in the
Emergency/Reserve Fund after the conclusion of this plan, the
Debtor will distribute 50% of such funds for creditors in Class 11.
The Debtor will be permitted to retain the other 50% as necessary
expenses for ongoing operations after completion of the payments.
A full-text copy of the Plan of Reorganization dated January 3,
2025 is available at https://urlcurt.com/u?l=U1kWOS from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Reese W. Baker, Esq.
Nikie Marie López-Pagan, Esq.
Baker & Associates
950 Echo Lane Ste. 300
Houston, TX 77024
Telephone: (713) 869-9200
Facsimile: (713) 869-9100
Email: courtdocs@bakerassociates.net
About Houston Truck Wash & Lube
Houston Truck Wash & Lube, Inc. owns a truck wash that operates at
7821 Lyons Ave., Houston, Texas 77029.
The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Texas Case No. 24-34706) on
October 6, 2024, listing $500,001 to $1 million in both assets and
liabilities.
Judge Jeffrey P Norman presides over the case.
Reese W Baker, Esq., at Baker & Associates, is the Debtor's legal
counsel.
IAMGOLD CORP: Egan-Jones Lowers Senior Unsecured Ratings to BB-
---------------------------------------------------------------
Egan-Jones Ratings Company on December 11, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by IAMGOLD Corporation to BB- from B+. EJR also
withdrew its rating on commercial paper issued by the Company.
Headquartered in Toronto, Canada, IAMGOLD Corporation is an
intermediate gold producer and developer company.
IBIO INC: Sabby Volatility Holds 0.2% Equity Stake
--------------------------------------------------
Sabby Volatility Warrant Master Fund, Ltd., Sabby Management, LLC,
and Hal Mintz disclosed in a Schedule 13G filing with the U.S.
Securities and Exchange Commission that they beneficially own
19,250 shares of iBio, Inc.'s common stock representing 0.2% of the
Company's outstanding shares of stock.
About iBio, Inc.
Headquartered in San Diego, CA, iBio -- http://www.ibioinc.com--
is a preclinical stage biotechnology company leveraging the power
of Artificial Intelligence (AI) for the development of
hard-to-drug
precision antibodies. The Company's proprietary technology stack
is designed to minimize downstream development risks by employing
AI-guided epitope-steering and monoclonal antibody (mAb)
optimization.
Jericho, New York-based Grassi & Co., CPAs, P.C., the Company's
auditor since 2024, issued a "going concern" qualification in its
report dated Sept. 19, 2024, citing that the Company has incurred
losses since inception, accumulated deficit and has negative cash
flows from operations, that raise substantial doubt about its
ability to continue as a going concern.
ILEARNINGENGINES INC: Seeks Court Okay to Use Lender's Cash
-----------------------------------------------------------
Dorothy Ma of Bloomberg Law reports that iLearningEngines, Inc., a
software company that's been called out by Hindenburg Research,
plans to ask for a court's approval to use cash collaterals,
according to a court document dated January 9, 2025.
The firm hasn't obtained post-petition financing to date and has an
"urgent and immediate need" for the use of cash collateral, wrote
Bonnie-Jeanne Gerety, interim chief financial officer on Thursday,
January 9, 2025, according to Bloomberg Law.
iLE filed for Chapter 11 bankruptcy in Delaware on December 20,
2024, about four months after Hindenburg Research said it was short
the stock, the report states.
About iLearningEngines
iLearningEngines offers an Artifical Intelligence ("AI") platform
focused on automation of learning and enabling organizations to
drive mission critical outcomes at scale.
iLearningEngines sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12826) on December
20, 2024. In the petition filed by Bonnie-Jeanne Gerety, as interim
chief financial officer, the Debtor reports total assets as of
September 30, 2024 amounting to $148,848,000 and total Debts as of
September 30, 2024 amounting to $141,036,000.
Honorable Bankruptcy Judge Laurie Selber Silverstein handles the
case.
The Debtor is represented by Ian J. Bambrick, Esq. of Faegre
Drinker Biddle & Reath LLP.
IN HOME PERSONAL: Court Extends Use Cash Collateral to March 4
--------------------------------------------------------------
In Home Personal Services, Inc. received interim approval from the
U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division to use cash collateral until March 4.
The interim order approved the use of cash collateral of the U.S.
Small Business Administration solely in accordance with In Home's
projected budget, which reflects its projected expenses for January
and February.
In Home is prohibited from making any payments or distributions
other than those projected in the budget without prior written
consent from SBA.
The agency has a blanket lien on the healthcare provider's assets,
with claims exceeding $2,182,378.09.
SBA will be granted a replacement lien on the assets, including
accounts receivable, inventory, equipment, and the proceeds
thereof, to the extent there is diminution in value of its
collateral.
The next hearing is scheduled for March 4.
About In Home Personal Services
In Home Personal Services Inc. operates a health care business in
Carpentersville, Ill.
In Home Personal Services sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No.
24-08842) on June 15, 2024, with total assets of $744,226 and total
liabilities of $3,509,818. Michael Collura, president of In Home
Personal Services, signed the petition.
Judge Jacqueline P. Cox oversees the case.
The Debtor tapped James A. Young, Esq., at James Young Law as
bankruptcy counsel and Lois West, CPA, at KRD Accountants Ltd. as
accountant.
IN2VATE L.L.C.: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: In2vate, L.L.C.
401 S Boston Ave Ste 315
Tulsa, OK 74103
Business Description: In2vate, L.L.C. is a wholly owned subsidiary
of iLearningEngines Holdings, Inc.
iLearningEngines is an Applied AI platform
for learning and work automation. iLE is
deployed globally into some of the most
demanding vertical markets including
Healthcare, Education, Insurance, Retail,
Energy, Manufacturing and Public Sector.
Chapter 11 Petition Date: January 9, 2025
Court: United States Bankruptcy Court
District of Delaware
Case No.: 25-10020
Judge: Hon. Laurie Selber Silverstein
Debtor's Counsel: Ian J. Bambrick, Esq.
FAEGRE DRINKER BIDDLE & REATH LLP
222 Delaware Avenue
Suite 1410
Wilmington, DE 19801
Tel: 302-467-4200
E-mail: ian.bambrick@faegredrinker.com
Debtor's
Notice,
Claims,
Solicitation,
Balloting &
Administrative
Agent: STRETTO, INC.
Estimated Assets
(on a consolidated basis): $100 million to $500 million
Estimated Liabilities
(on a consolidated basis): $100 million to $500 million
The petition was signed by Bonnie-Jeanne Gerety as interim chief
financial officer.
The Debtor failed to include a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/W53ELLY/In2vate_LLC__debke-25-10020__0001.0.pdf?mcid=tGE4TAMA
Background Information:
On Dec. 20, 2024, iLearningEngines, Inc. ("ILE") and
iLearningEngines Holdings, Inc. ("ILEH") each filed a voluntary
petition with the U.S. Bankruptcy Court for the District of
Delaware for relief under Chapter 11 of title 11 of the United
States Code.
On Dec. 27, 2024, iLearningEngines FZ-LLC ("ILE FZ") filed a
voluntary petition with the Court for relief under chapter 11 of
the Bankruptcy Code, which is currently pending before the Court at
Case No. 24-12850 (LSS).
iLearningEngines Holdings, Inc. owns 100% of the equity of
iLearningEngines FZ-LLC and In2vate, L.L.C. iLE owns 100% of the
equity of iLearningEngines Holdings, Inc. ILE, ILEH, ILE FZ, and
In2vate stated they will move to supplement the previously granted
joint administration of their cases to include In2vate under the
case number assigned to the Chapter 11 case of Debtor ILE, Case No.
24-12826 (LSS).
INDEPENDENCE CONTRACT: Gets Court Nod for Ch. 11 Plan w/ Releases
-----------------------------------------------------------------
Vince Sullivan of Law360 reports that Independence Contract
Drilling, an oil well operator, received approval from a Texas
bankruptcy judge on January 9, 2025, for its Chapter 11
reorganization plan, which incorporates consensual third-party
releases.
About Independence Contract Drilling Inc.
Independence Contract Drilling, Inc., and its affiliates provide
land-based contract drilling services for a broad array of oil and
natural gas producers in the United States. The Company utilizes
its specialized drilling rig fleet, including super-spec,
AC-powered rigs, to support exploration by targeting unconventional
oil and natural gas resources in geographic regions that can be
leveraged by the Debtors' primary Houston, Texas, Midland, Texas,
Odessa, Texas, and Coushatta, Louisiana facilities.
Independence Contract Drilling and its affiliates sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead
Case No. 24-90612) on December 2, 2024. In the petition signed by
J. Anthony Gallegos, Jr., as president and chief executive officer,
Independence reported total assets of $356,854,000 and total debt
of $216,785,000 as of Sept. 30, 2024.
The Honorable Bankruptcy Judge Alfredo R. Perez handles the cases.
Sidley Austin LLP is the Company's restructuring counsel, Riveron
is the restructuring advisor, and Piper Sandler is the investment
banker. Kroll is the claims agent.
Latham & Watkins LLP is legal counsel for the Noteholders.
INNOVATIVE MEDTECH: Issues 6.5M Shares to CEO's Red Halo LLC
------------------------------------------------------------
Innovative MedTech, Inc., disclosed in a Form 8-K submitted to the
Securities and Exchange Commission that, on Dec. 17, 2024, it
issued 6,500,000 shares of common stock to Red Halo, LLC, a limited
liability company controlled by the Company's CEO, Michael
Friedman. The shares were issued in settlement of $325,000 in
accrued compensation owed to Mr. Friedman and Red Halo by the
Company.
About Innovative Medtech
Headquartered in Blue Island, IL, Innovative Medtech, Inc. is a
provider of health and wellness services, and has two divisions:
technology and devices and Adult Day Services. The Company's
technology and devices division has signed a distribution agreement
with 2 products: a high detection vein visualization device and an
Oral Thrush product, and the company's wholly owned subsidiary
SarahCare, an adult day care center franchisor with 2 corporate
owned centers and 24 franchise locations across the United States.
SarahCare offers seniors daytime care and activities ranging from
exercise and medical needs daily to nursing care and salon
services.
Tampa, Florida-based Astra Audit & Advisory, LLC, the Company's
auditor since 2024, issued a "going concern" qualification in its
report dated Oct. 15, 2024, citing that the Company has incurred
net losses and working capital deficits. These factors, along with
the need for additional financing to meet its business plans, raise
substantial doubt about the Company's ability to continue as a
going concern.
INTRUM AB: Creditor Lock-Up Poses Risk of Limiting Insurance Payout
-------------------------------------------------------------------
Giulia Morpurgo, Irene García Perez, and Dorothy Ma of Bloomberg
News report that Intrum AB's lock-up agreement with creditors may
limit the insurance payout investors can expect from the coverage
they purchased against a default by the Swedish debt collector.
According to the report, around 73% of the company's bondholders
have signed an agreement supporting its restructuring plan, which
prevents them from trading the bonds. This effectively reduces the
number of notes available for auction later this month to settle
the firm’s credit default swaps.
The credit default swaps were triggered following the company's
Chapter 11 bankruptcy filing in the US.
About Intrum AB
Intrum AB is a provider of credit management services with a
presence in 20 markets in Europe. By helping companies to get paid
and supporting people with their late payments, Intrum leads the
way to a sound economy and plas a critical role in society at
large. Intrum has circa 10,000 dedicated professionals who serve
around 80,000 companies across Europe. In 2023, income amounted to
SEK 20.0 billion. Intrum is headquartered in Stockholm, Sweden and
publicly listed on the Nasdaq Stockholm exchange. On the Web:
@ www.intrum.com/
On November 15, 2024, Intrum AB and U.S. affiliate Intrum AB of
Texas LLC each filed a voluntary petition for the relief under
Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Southern District of Texas (Bankr.
S.D. Tex. Lead Case No. 24-90575) to seek confirmation of their
Prepackaged Reorganization Plan.
The cases are pending before the Honorable Christopher M. Lopez.
Milbank LLP and Porter Hedges LLP are serving as counsel in the
U.S. restructuring. Houlihan Lokey is the advisor to Intrum. Kroll
Issuer Services Limited is the information agent. Kroll
Restructuring Administration is the claims agent. Brunswick Group
is also serving as advisers to Intrum.
Latham & Watkins LLP and Latham & Watkins (London) LLP, and
Advokatfirmaet Schjodt AS, are advising a group of bondholders
holding widely across Intrum AB's notes issuances (the "Notes Ad
Hoc Group"). PJT Partners (UK) Limited is financial advisor to the
noteholder ad hoc group.
Weil Gotshal & Manges LLP is representing a group of short-dated
bondholders holding primarily 2024- and 2025-maturing notes
("Minority Ad Hoc Group").
Ropes & Gray LLP is representing another minority group of
bondholders.
Clifford Chance US LLP is counsel to the group that collectively
holds approximately 76 percent of the total commitments under the
RCF (the "RCF Steerco Group").
IRIDIUM COMMUNICATIONS: Egan-Jones Retains B- Sr. Unsec. Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on December 17, 2024, maintained its
'B-' foreign currency and local currency senior unsecured ratings
on debt issued by Iridium Communications Inc. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in McLean, Virginia, Iridium Communications Inc.
offers mobile satellite communications services.
IRON IQ: Case Summary & 18 Unsecured Creditors
----------------------------------------------
Debtor: Iron IQ, Inc.
Iron-IQ, Inc.
Iron-IQ
Scada Integration Partners
Drillbox, Inc.
610 Rood Avenue
Grand Junction, CO 81501
Business Description: Iron IQ, Inc. offers cloud-native SCADA
solutions for the oil and gas industry,
enabling remote monitoring, control, and
optimization of equipment and processes.
The company provides integration, production
optimization, and technical support to
ensure efficient and cost-effective
operations. With over 1000 installations
and a team of specialists, Iron IQ ensures
smooth implementation and ongoing
operational excellence.
Chapter 11 Petition Date: January 10, 2025
Court: United States Bankruptcy Court
District of Colorado
Case No.: 25-10152
Judge: Hon. Michael E Romero
Debtor's Counsel: Keri L. Riley, Esq.
KUTNER BRINEN DICKEY RILEY PC
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Tel: 303-832-2400
Email: klr@kutnerlaw.com
Total Assets: $366,590
Total Liabilities: $4,722,063
The petition was signed by Michael Ligrani as CEO.
A copy of the Debtor's list of 18 unsecured creditors is available
for free on PacerMonitor at:
https://www.pacermonitor.com/view/JMU67VA/Iron_IQ_Inc__cobke-25-10152__0003.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/JGB2EXA/Iron_IQ_Inc__cobke-25-10152__0001.0.pdf?mcid=tGE4TAMA
IYA FOODS: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: Iya Foods, Inc.
31W290 Schoger Drive
Naperville, IL 60564
Business Description: Iya Foods, Inc. is a company that
specializes in producing and offering
African superfoods. Their products are
plant-based, gluten-free, non-GMO, kosher,
and free from preservatives, additives, or
artificial ingredients. The company focuses
on creating nutritious and delicious
ingredients that can be used in a variety of
recipes, making them accessible to people
with dietary preferences or restrictions,
such as those following vegan or gluten-free
diets.
Chapter 11 Petition Date: January 10, 2025
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 25-00341
Judge: Hon. Deborah L Thorne
Debtor's Counsel: Justin Storer, Esq.
THE LAW OFFICE OF WILLIAM J. FACTOR, LTD
105 W. Madison St., Suite 2300
Chicago, IL 60602
E-mail: jstorer@wfactorlaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Oluwatoyin Kolawole as CEO.
The Debtor failed to include a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/TTNPYBI/Iya_Foods_Inc__ilnbke-25-00341__0001.0.pdf?mcid=tGE4TAMA
J AND J WINDOWS: Commences Subchapter V Bankruptcy Proceeding
-------------------------------------------------------------
On January 8, 2025, J and J Windows Installs LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Middle District of
Florida.
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 J and J Windows Installs LLC
J and J Windows Installs LLC is a window installation contractor
based in Middleburg, Florida.
J and J Windows Installs LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla.Case No. 25-00060) on
January 8, 2025. In its petition, the Debtor reports estimated
assets between $10,000 and $50,000 and estimated liabilities
between $500,000 and $1 million.
Honorable Bankruptcy Judge Jacob A. Brown handles the case.
Aaron A Wernick of Wernick Law, PLLC represents the Debtor as
counsel.
JACK IN THE BOX: Egan-Jones Retains B- Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on December 11, 2024, maintained its
'B-' foreign currency and local currency senior unsecured ratings
on debt issued by Jack in the Box Inc. EJR also withdrew its rating
on commercial paper issued by the Company.
Headquartered in San Diego, California, Jack in the Box Inc.
operates a chain of restaurants.
JACKSON COURT: Starts Subchapter V Bankruptcy Process in California
-------------------------------------------------------------------
On January 8, 2025, Jackson Court City Share Owners Association
filed Chapter 11 protection in the U.S. Bankruptcy Court for
the Northern District of California.
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) to be held on February
2/3/2025 at 01:00 PM via UST Teleconference, Call in number/URL:
1-877-991-8832 Passcode: 4101242.
About Jackson Court City Share Owners
Association
Jackson Court City Share Owners Association based at 2198 Jackson
Street in San Francisco, operates as a property owners
association.
Jackson Court City Share Owners Association sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No.
25-30010 on January 8, 2025. In its petition, the Debtor reports
estimated assets between $1 million and $10 million and estimated
liabilities between $100,000 and $500,000.
Honorable Bankruptcy Judge Hannah L. Blumenstiel handles the
case.
Michael St. James of St. James Law, P.C. represents the Debtor as
case.
JDAMLKS FAMILY: To Sell Palmetto Bay Property to M. Diaz for $1.3MM
-------------------------------------------------------------------
JDAMLKS Family Limited Partnership seeks permission from the U.S.
Bankruptcy Court for the Southern District of Florida, Miami
Division, to sell certain real property, free and and clear of
liens, claims and encumbrances.
The Debtor is family limited partnership that owns the residential
real property located at 16889 SW 73 Ct, Palmetto Bay, FL 33157.
The Debtor acquired the Property over 20 years ago, on May 11,
2004, by Quit Claim Deed from Antoinette De Moerloose. Currently,
relative(s) of the limited partners of the Debtor are residing at
the Property, which is a "single asset real estate."
The current secured creditor is U.S. Bank, National Association, as
Trustee for Truman 2021 SC9 Title Trust.
The Debtor is currently making adequate protection payments to the
Secured Lender in the amount of $6,584.80 per month.
The only other debt owed by the Debtor as of the Petition Date are
the Miami Dade County 2024 property taxes due on the Property in
the amount of $20,336.48.
The Debtor receives an offer to purchase the Property from Manny
Diaz in the amount of $1,375,000.
The Purchase Contract is not subject to any contingencies and the
proposed closing date is scheduled for January 31, 2025.
As of January 2, 2025, the Purchaser has placed $62,500.00 in
escrow in anticipation of closing.
The Debtor has conducted research with the assistance of Askowitz
regarding the value of the Property and believes that the Purchase
Price is well in line with current market prices for similar
properties in the area.
The Debtor believes that it would be in the best interest of the
Debtor’s creditors to accept the offer, and proposes that any
participating broker(s) associated with the contemplated sale be
paid from the closing proceeds. The contemplated commission to be
paid by the Debtor from the closing proceeds based on the Purchase
Price is $61,875.00 (a total commission of 4.5%).
About JDAMLKS Family Limited Partnership
JDAMLKS Family Limited Partnership filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla.
Case No. 24-21767) on Nov. 8, 2024, listing $1,000,001 to $10
million in assets and $500,001 to $1 million in liabilities.
Judge Robert A Mark presides over the case.
Timothy S Kingcade, Esq. at Kingcade, Garcia & McMaken, P.A.
represents the Debtor as counsel.
JEWELRY DESIGNER: Commences Subchapter V Bankruptcy Proceeding
--------------------------------------------------------------
On January 9, 2025, Jewelry Designer Showcase Inc. sought 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.
About Jewelry Designer Showcase Inc.
Jewelry Designer Showcase Inc., d/b/a Dannunzio Designed, a jewelry
designer specializing in curating an elegant collection of
impeccably crafted, unique, iconic, and innovative jewelry pieces.
The collection includes a wide selection of earrings, pendants,
bracelets, and necklaces.
Jewelry Designer Showcase Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No.: 25-40076) on
January 9, 2025. In its petition, the Debtor reports estimated
assets up to $50,000 and estimated liabilities between $1 million
and $10 million.
Honorable Bankruptcy Judge Elizabeth S. Stong handles the case.
Avrum J. Rosen, Esq., at Law Offices of Avrum J. Rosen, PLLC, is
the Debtor's counsel.
JOANN INC: Loan Dips in Secondary Market Due to Liquidity Issues
----------------------------------------------------------------
Jeannine Amodeo and Reshmi Basu of Bloomberg News reports that
dealers have been offering Joann Inc.'s leveraged loan at about 20
cents on the dollar after news emerged that the crafts retailer is
consulting with advisers to strengthen its balance sheet. However,
investors are only willing to pay around half of that amount,
according to sources familiar with the situation, the report
relates.
The $154 million loan had been trading around 70 cents on the
dollar in December 2024, prior to the Bloomberg report highlighting
the company's efforts to address liquidity challenges, the sources
said, requesting anonymity, according to the report.
About Joann Inc.
JOANN operates in the fabric and sewing industry with one of the
largest assortments of arts and crafts products. JOANN has
transformed itself into a fully-integrated, digitally-connected
omni-channel retailer.
JOANN reported a net loss of $200.6 million for the year ended Jan.
28, 2023.
On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 24-10418). JOANN listed
$2,257,700,000 in assets against $2,440,700,000 in liabilities as
of Oct. 28, 2023.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan
Lokey Capital, Inc. as investment banker; and Alvarez & Marsal
North America, LLC, as financial advisor. Kroll Restructuring
Administration, LLC is the noticing agent.
JOANN Inc., on April 30, 2024 successfully emerged from its
court-supervised financial restructuring process.
JOANN INC: Plans Second Chapter 11 Bankruptcy Filing in a Year
--------------------------------------------------------------
Reshmi Basu of Bloomberg News reports that fabric and crafts
retailer, Joann Inc., that exited Chapter 11 bankruptcy less than a
year ago, is reportedly considering another bankruptcy filing due
to cash flow challenges, according to sources familiar with the
situation.
While no final decision has been made, the filing could occur as
early as this month, the sources said, requesting anonymity due to
the private nature of the discussions, the report relates. The
company is also evaluating alternative options, including a
potential sale or raising additional capital, they added, according
to the report.
About Joann Inc.
JOANN operates in the fabric and sewing industry with one of the
largest assortments of arts and crafts products. JOANN has
transformed itself into a fully-integrated, digitally-connected
omni-channel retailer.
JOANN reported a net loss of $200.6 million for the year ended Jan.
28, 2023.
On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 24-10418). JOANN listed
$2,257,700,000 in assets against $2,440,700,000 in liabilities as
of Oct. 28, 2023.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan
Lokey Capital, Inc. as investment banker; and Alvarez & Marsal
North America, LLC, as financial advisor. Kroll Restructuring
Administration, LLC is the noticing agent.
JOANN Inc., on April 30, 2024 successfully emerged from its
court-supervised financial restructuring process.
JOANN INC: Plans to Close Several Stores in 2025
------------------------------------------------
Chad Murphy of Akron Beacon Journal reports that Joann Fabrics will
be closing several stores in 2025 following its bankruptcy filing
in 2024.
Newsweek reports that the Hudson, Ohio-based retailer is making
these closures as part of efforts to "get its finances on track."
However, no stores in Ohio or Kentucky are on the closure list. The
six locations slated for closure are:
* Burlington, Iowa
* Owings Mills, Maryland
* Holyoke, Massachusetts
* Ithaca, New York
* Hickory, North Carolina
* Williamsport, Pennsylvania
Joann operates 830 stores nationwide, including 45 locations in
Ohio. These include two in the Akron area, three in Cincinnati, and
three in Greater Columbus, according to report.
About Joann Inc.
JOANN operates in the fabric and sewing industry with one of the
largest assortments of arts and crafts products. JOANN has
transformed itself into a fully-integrated, digitally-connected
omni-channel retailer.
JOANN reported a net loss of $200.6 million for the year ended Jan.
28, 2023.
On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 24-10418). JOANN listed
$2,257,700,000 in assets against $2,440,700,000 in liabilities as
of Oct. 28, 2023.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan
Lokey Capital, Inc. as investment banker; and Alvarez & Marsal
North America, LLC, as financial advisor. Kroll Restructuring
Administration, LLC is the noticing agent.
JOANN Inc., on April 30, 2024 successfully emerged from its
court-supervised financial restructuring process.
JUBILANT FLAME: Posts $14K Net Loss in Third Quarter
----------------------------------------------------
Jubilant Flame International, Ltd., filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $14,130 on $0 of revenue for the three months ended
Nov. 30, 2024, compared to a net loss of $14,954 on $0 of revenue
for the three months ended Nov. 30, 2023.
For the nine months ended Nov. 30, 2024, the Company reported a net
loss of $46,370 on of revenue compared to a net loss of $51,741 on
$0 of revenue for the same period a year ago.
As of Nov. 30, 2024, the Company had $16,855 in total assets, $1.36
million in total liabilities, and a total stockholders' deficit of
$1.34 million.
The company stated that it currently operates on a small scale and
has an accumulated deficit of $3,832,314 as of Nov. 30, 2024, which
raises substantial doubt about its ability to continue as a going
concern.
Jubilant Flame said, "The Company may raise additional capital
through the sale of its equity securities, through an offering of
debt securities, or through borrowings from financial institutions
or related parties. By doing so, the Company hopes to generate
sufficient capital to execute its business plan in the nutrition
product technology support sector on an ongoing basis. Management
believes that actions presently being taken to obtain additional
funding provide the opportunity for the Company to continue as a
going concern. There is no guarantee the Company will be
successful in achieving these objectives."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001517389/000147793225000108/jfil_10q.htm
About Jubilant
Jubilant Flame International, Ltd initially provided web
development and marketing services but later shifted focus to
medical products and, in 2018, entered the U.S. cosmetics market
with the Acropass series. In 2020, the company ceased cosmetics
sales and began offering technical support for developing
nutritional products, such as Sea-Buckthorn and Organic Sprouting
Powder. It currently provides technical expertise to manufacturers
in the U.S. market for these nutritional products.
Diamond Bar, California-based KCCW Accountancy Corp., the Company's
auditor since 2023, issued a "going concern" qualification in its
report dated May 7, 2024. The report highlights the Company's
Company's recurring operational losses, as well as its working
capital deficiency and stockholders' deficit, which raise
substantial doubt about the Company's ability to continue as a
going concern.
KAAS ENTERPRISES: Seeks Chapter 11 Bankruptcy Protection
--------------------------------------------------------
On January 10, 2025, KAAS Enterprise 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 KAAS Enterprise LLC
KAAS Enterprise LLC is operating from Coraopolis, Pennsylvania, is
a food retail business.
KAAS Enterprise LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20076) on January 10,
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, Esq. represents the Debtor as counsel.
KELVIN SPECIAL: Leon Jones Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 21 appointed Leon Jones, Esq., at Jones
& Walden, LLC, as Subchapter V trustee for The Kelvin Special,
LLC.
Mr. Jones will be paid an hourly fee of $475 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Jones declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Leon S. Jones, Esq.
Jones & Walden, LLC
699 Piedmont Ave. NE
Atlanta, GA 30308
Phone: (404) 564-9300
Email: ljones@joneswalden.com
About The Kelvin Special
The Kelvin Special LLC, doing business as Home Owners Advisory
Group (HAG) LLC, is an Atlanta-based single asset real estate
company with principal offices at Peachtree Road.
The Kelvin Special sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50209) on January 7,
2025. In its petition, the Debtor reported estimated assets and
liabilities between $100,000 and $500,000 each.
KEMPER CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on December 10, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Kemper Corporation. EJR also withdrew its rating
on commercial paper issued by the Company.
Headquartered in Chicago, Illinois, Kemper Corporation is a
financial services provider.
LEFEVER MATTSON: Seeks to Extend Plan Exclusivity to May 30
-----------------------------------------------------------
Lefever Mattson and its affiliates asked the U.S. Bankruptcy Court
for the Northern District of California to extend their exclusivity
periods to file a plan of reorganization and obtain acceptance
thereof to May 30 and July 31, 2025, respectively.
The Debtors explain that their Chapter 11 Cases have proven to be
as large and complicated as originally expected. Less than four
months since the September 12 Debtors filed their petitions, the
Debtors have made material progress on multiple strategic fronts in
these Chapter 11 Cases.
However, the ongoing claims process, the investigations by the
Debtors and the Committee, and the efforts to evaluate and monetize
the Debtors' real property assets, will require additional time to
permit the Debtors to negotiate a chapter 11 plan and prepare the
adequate information necessary for parties to vote on such a plan.
The Debtors, the Committee, and all of the professionals in these
Chapter 11 Cases have been working diligently to complete all of
the substantial work that is a necessary prerequisite to
formulating a chapter 11 plan.
The Debtors claim that while these strategic efforts have been
ongoing, the companies have made every effort to continue their
operations in order to maintain the value of their assets. They
have also worked with their many secured creditors in good faith to
reach agreements for the use of cash collateral to operate the
Debtors' properties. The Debtors' efforts thus far have avoided
material litigation and provided substantial savings to their
estates in professional fees.
The Debtors assert that they have no reason to believe that they
will not be able to develop and file a plan when they have
sufficient reliable information as to the claims against, interests
in, and assets of, their bankruptcy estates.
Attorneys for the Debtors:
Tobias S. Keller, Esq.
David A. Taylor, Esq.
Thomas B. Rupp, Esq.
Keller Benvenutti Kim LLP
425 Market Street, 26th Floor
San Francisco, California 94105
Telephone: (415) 496-6723
Facsimile: (650) 636-9251
Email: tkeller@kbkllp.com
dtaylor@kbkllp.com
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.
LEGGETT & PLATT: Egan-Jones Lowers Senior Unsecured Ratings to BB
-----------------------------------------------------------------
Egan-Jones Ratings Company on December 16, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Leggett & Platt, Incorporated to BB from BB+.
Headquartered in Carthage, Missouri, Leggett & Platt, Incorporated
manufactures a wide range of engineered products.
LEXARIA BIOSCIENCE: Names J. Docherty as President, CSO
-------------------------------------------------------
Effective January 1, 2025, the Executive Management Agreement with
an effective date of January 1, 2022 between Lexaria Bioscience
Corp. (via its wholly owned subsidiary Kelowna Management Services
Corp.) and John Docherty its President, has terminated and been
replaced with a new Executive Management Agreement, the Company
disclosed in a Form 8-K filing with the U.S. Securities and
Exchange Commission.
The New Agreement engages Mr. Docherty as the President and Chief
Scientific Officer of Lexaria Bioscience Corp. and its
subsidiaries. In his position as President and CSO, Mr. Docherty
will be compensated with a base annual salary which will be subject
to annual increases of 5% on each of January 1, 2026 and January 1,
2027 and thereafter may be increased from time to time in
accordance with normal business practice. Mr. Docherty shall also
be eligible to receive annual performance milestone bonuses of up
to 50% of the base salary. Mr. Docherty shall also receive up to
24 months of base salary upon any Change of Control event and
further shall be entitled to a one-time lump sum payment equal to
2% of the total value attributed to the sale of an affiliate
company, with the compensation in either case being payable within
90 days of such event.
Should Mr. Docherty resign for good reason or be terminated by
Lexaria without cause, he will be entitled to severance pay equal
to fifteen (15) months base salary, with such severance pay
increasing by a month’s base salary for each additional completed
year of employment up to a maximum of twenty-four (24) months base
salary.
About Lexaria
Headquartered in Kelowna, BC, Canada, Lexaria Bioscience Corp. --
http://www.lexariabioscience.com/-- is a biotechnology company
developing the enhancement of the bioavailability of a broad range
of fat-soluble active molecules and active pharmaceutical
ingredients using its patented DehydraTECHâ„¢ drug delivery
technology. DehydraTECH combines lipophilic molecules or APIs with
specific long-chain fatty acids and carrier compounds that improve
the way they enter the bloodstream, increasing their effectiveness
and allowing for lower overall dosing while promoting healthier
oral ingestion methods.
Lexaria reported a net loss of $6.71 million for the year ended
Aug. 31, 2023, compared to a net loss of $7.38 million for the
year
ended Aug. 31, 2022. As of May 31, 2024, Lexaria Bioscience had
$10.02 million in total assets, $271,375 in total liabilities, and
$9.75 million in total stockholders' equity.
Going Concern
"The continuation of Lexaria as a going concern depends on raising
additional capital and/or attaining and maintaining profitable
operations. The accompanying financial statements do not include
any adjustment relating to the recovery and classification of
recorded asset amounts or the amount and classification of
liabilities that might be necessary should our Company discontinue
operations. The recurring losses from operations and net capital
deficiency may raise substantial doubt about the Company's ability
to continue as a going concern within one year following the date
that these consolidated financial statements are issued," Lexaria
said in its Quarterly Report for the period ended May 31, 2024.
LI-CYCLE HOLDINGS: Koch Holds 4.17% Equity Stake
------------------------------------------------
Spring Creek Capital, LLC, disclosed in a Schedule 13D filing with
the U.S. Securities and Exchange Commission that as of December 31,
2024, it beneficially owns 6,720 shares of Li-Cycle Holdings
Corp.'s common stock, representing 0.02% of the Company's
30,427,796 common shares outstanding as of December 31, 2024.
Wood River Capital, LLC, disclosed that as of December 31, 2024, it
beneficially owns 1,316,667 shares of the Company's common stock,
representing 4.15% of the Company's 30,427,796 common shares
outstanding as of December 31, 2024.
Koch, Inc., disclosed that as of December 31, 2024, it beneficially
owns 1,323,387 shares of the Company's common stock, representing
4.17% of the Company's 30,427,796 common shares outstanding as of
December 31, 2024.
Each of Spring Creek and Wood River is beneficially owned by SCC
Holdings, LLC, which is beneficially owned by KIM, LLC, which is
beneficially owned by Koch Investments Group, LLC ("KIG"), which is
beneficially owned by Koch Investments Group Holdings, LLC
("KIGH"), which is beneficially owned by Koch Companies, LLC, which
is beneficially owned by Koch, Inc., in each case by means of
ownership of all voting equity instruments.
Koch, Inc., KCLLC, SCC, KIM, KIG, and KIGH may be deemed to
beneficially own the Public Shares held by Spring Creek and Wood
River by virtue of (i) Koch, Inc.'s beneficial ownership of KCLLC,
(ii) KCLLC's beneficial ownership of KIGH, (iii) KIGH's beneficial
ownership of KIG, (iv) KIG's beneficial ownership of KIM, (v) KIM's
beneficial ownership of SCC and (vi) SCC's beneficial ownership of
each of Wood River and Spring Creek.
About Li-Cycle Holdings Corp.
Li-Cycle Holdings Corp. is a Canada-based global lithium-ion
battery resource recovery company and pure-play lithium-ion
battery
recycler.
Vaughan, Canada-based KPMG LLP, the Company's former auditor,
issued a "going concern" qualification in its report dated March
15, 2024, citing that the Company has suffered recurring losses
from operations since inception, continued cash outflows from
operating activities and paused its construction of the Rochester
Hub project, that raise substantial doubt about its ability to
continue as a going concern.
Li-Cycle reported a net loss of $138 million for the year ended
December 31, 2023, compared to net loss of $70.8 million for the
year ended December 31, 2022.
LILIUM N.V.: Faces Regular Insolvency Proceedings in Germany
------------------------------------------------------------
Lilium N.V. disclosed in a Form 8-K filed with the Securities and
Exchange Commission that on Dec. 30, 2024, the court of Weilheim,
Germany opened a regular insolvency proceedings pertaining to the
Company. This followed Lilium's submission of a motion on Nov. 6,
2024, requesting the opening of regular insolvency proceedings with
the competent insolvency court in Germany. The Company does not
expect any distributions to holders of its Class A ordinary shares
in connection with the winding up process. Furthermore, all
existing employment contracts with the Company have been terminated
in accordance with German law.
In a related development, Lilium announced the resignation of two
members of its Board of Directors. Margaret M. Smyth resigned as a
member of the Board of directors, chair of the Sustainability
Committee and member of the Audit Committee, effective Dec. 31,
2024. Gabrielle Toledano resigned as a member of the Board, chair
of the Compensation Committee and member of the Audit Committee,
effective Jan. 4, 2025. Both resignations were not the result of
any disagreement on any matters related to the operations of
Lilium.
As previously announced, Lilium GmbH and Lilium eAircraft GmbH, the
principal operating wholly-owned German subsidiaries of Lilium,
signed an asset purchase agreement dated Dec. 23, 2024, with MUC
Mobile Uplift Corporation GmbH, pursuant to which the Purchaser
intends to acquire the operating assets of the Subsidiaries. The
main execution of the Agreement with the transfer of possession of
the operating assets and the transfer of the operations of the
Subsidiaries occurred on Jan. 7, 2025. The transfer of ownership
of the assets of the Subsidiaries is expected to occur on Jan. 20,
2025. The proceeds from the sale will be used in accordance with
German Insolvency Law. Lilium will not receive any proceeds from
the sale that would allow it to make distributions to
shareholders.
About Lilium
Lilium (NASDAQ: LILM) -- www.lilium.com -- is creating a
sustainable and accessible mode of high-speed, regional
transportation for people and goods. Using the Lilium Jet, an
all-electric vertical take-off and landing jet, designed to offer
leading capacity, low noise, and high performance with zero
operating emissions, Lilium aims at accelerating the
decarbonization of air travel. Working with aerospace, technology,
and infrastructure leaders, and with announced sales and
indications of interest in Europe, the United States, China,
Brazil, the UK, the United Arab Emirates, and the Kingdom of Saudi
Arabia, Lilium's 1,000+ strong team includes approximately 500
aerospace engineers and a leadership team responsible for
delivering some of the most successful aircraft in aviation
history. Founded in 2015, Lilium's headquarters and manufacturing
facilities are in Munich, Germany.
Munich, Germany-based PricewaterhouseCoopers GmbH
Wirtschaftsprufungsgesellschaft, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated March
15, 2024, citing that the Company has incurred recurring losses
from operations since its inception and expects to continue to
generate operating losses that raise substantial doubt about its
ability to continue as a going concern.
MBIA INC: Egan-Jones Retains CCC- Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on December 19, 2024, maintained its
'CCC-' foreign currency and local currency senior unsecured ratings
on debt issued by MBIA Inc. EJR also withdrew its rating on
commercial paper issued by the Company.
Headquartered in Purchase, Harrison, New York, MBIA Inc. provides
financial guarantee insurance and other forms of credit protection.
MCGRAW-HILL EDUCATION: Moody's Hikes CFR to 'B2', Outlook Stable
----------------------------------------------------------------
Moody's Ratings upgraded McGraw-Hill Education, Inc.'s ratings,
including the company's Corporate Family Rating to B2 from B3,
Probability of Default Rating to B2-PD from B3-PD, senior secured
notes and senior secured first lien bank credit facility ratings to
B1 from B2 and senior unsecured notes rating to Caa1 from Caa2. The
outlook was changed to stable from positive.
The upgrades recognize McGraw's reduction in financial leverage,
strong operating performance and digital expansion that enabled
McGraw to grow its free cash flow and use a substantial portion of
it ($150 million YTD October 11, 2024) to pay down debt. Moody's
expect that McGraw will continue to prioritize using its free cash
flow for organic investments and debt repayment over the next 12-18
months. Governance considerations are key factors in the rating
actions. McGraw's progress in its digital transformation enhances
the company ability to reduce cash flow volatility as well as to
defend and grow its market share.
RATINGS RATIONALE
McGraw's B2 CFR reflects the company's high financial leverage,
seasonality of cash flow and high interest burden. Within its large
K-12 business, the purchasing cycles of adoption states drive
volatility of McGraw's sales volumes (on a billings basis) year to
year. Within its higher education segment, earnings growth is
tempered by affordability-driven price compression, competition
from open educational resources and cyclicality related to higher
education enrollment trends. McGraw seeks to mitigate these trends
by market share gains. Competition among leading companies is
intense as the market continues its transition to digital products
and services from traditional print learning materials. These
credit challenges are counterbalanced by McGraw's well recognized
brand, good market position, long-standing relationships with
education institutions, proprietary content developed through
long-term exclusive relationships with leading authors and broad
range of product offerings across multiple business segments.
Moody's expect that McGraw's progress in expanding its digital
offerings will support stronger customer retention, enhance the
company's ability to compete during the K-12 adoption cycles and
reduce volatility related to plate spending and returns of print
products. For example, McGraw's recently launched Evergreen
delivery model offers continuous content updates in higher
education. It replaced the traditional cycle of textbook editions
by delivering up-to-date digital content directly into existing
instructor-built courses.
McGraw's LTM September 2024 leverage, defined as Moody's adjusted
Debt/ EBITDA (excluding the change in deferred revenue) was 5.6x.
Moody's view this leverage level as high given the exposure to
adoption cycles in its K-12 business and inherent seasonality in
the higher education business. Moody's project Moody's adjusted
Debt/EBITDA to decline to just under 5x by the end of fiscal 2026
and to low-4x by the end of fiscal 2027 supported by further debt
reduction while cash balances continues to build. Moody's also
expect McGraw's to generate solid free cash flow of around $250
million after prepublication costs in fiscal 2026, though lower
than Moody's expectation for fiscal 2025 due to a lower volume of
K-12 adoptions. This will result in free cash flow generation
(after prepublication costs) of at least 8%-10% relative to debt
for fiscal 2025 and 2026, as adjusted by Moody's.
The B1 ratings on the senior secured credit facilities and the
senior secured notes benefit from their senior position in the
capital structure, resulting in a one-notch uplift from the B2 CFR.
Both the senior secured credit facilities and notes are ranked
above the $725 million unsecured notes ($639 million outstanding as
of 9/2024) due August 2029. The unsecured notes are rated Caa1 and
subordinated to the first lien senior secured credit facilities and
the recently amended and extended $300 million ABL facility
(unrated). The ABL revolver has first priority lien on all current
asset collateral and second priority lien on fixed asset
collateral. Given its pledge on the most liquid assets, Moody's
ranked it ahead of all rated secured and unsecured debt instruments
in Moody's priority of claim waterfall.
Moody's expect that McGraw will have very good liquidity supported
by its cash balance ($416 million as of September 30, 2024),
Moody's expectation of annual free cash flow generation in excess
of $350 million (or $250 million after deducting prepublication
costs) in fiscal 2026, access to a $300 million ABL facility
(unrated) due July 2029 and a $150 million revolver. Approximately
$39 million of the $150 million will mature in July 2026 and the
remaining $111 million will mature in August 2029. As of September
30, 2024, the revolver and the ABL revolver were undrawn. Moody's
project that the company's cash on hand, internally generated cash
flow and seasonal borrowings against the ABL facility will be
sufficient to fund the company's highly seasonal cash flow and the
1% required annual term loan amortization of roughly $13 million,
$70 - $90 million in capex and $75 - $100 million in plate
spending. There are no material funded maturities until 2028 when
the $900 million senior secured notes ($828 million outstanding as
of September 30, 2024) come due.
McGraw's revolver is governed by a springing net leverage covenant
of 6.95x tested at 40% or greater draw, and the ABL facility is
subject to a springing minimum fixed charge coverage ratio of 1.0x
if adjusted availability falls below certain amount. Moody's do not
expect the ABL or revolver covenants to spring over the next 12-18
months. The term loan is covenant-lite.
McGraw's CIS-4 credit impact score indicates that the rating is
lower than it would have been if ESG risk exposures did not exist.
The score reflects the company's high exposure to governance risks
reflecting an aggressive financial strategy under private equity
ownership and lack of independent directors on the board.
The stable outlook reflects Moody's expectations for further
Debt/EBITDA improvement through earnings growth, good liquidity and
balanced financial strategies emphasizing leverage reduction.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if McGraw demonstrates a disciplined
financial policy resulting in Moody's adjusted Debt/EBITDA
sustained comfortably below 4x with growing cash balances along
with a commitment to operating at that leverage level. Good
liquidity with free-cash flow-to-debt (Moody's adjusted) sustained
in the high- single-digit percentage range or better, would also be
needed for an upgrade.
McGraw's ratings could be downgraded if operating performance
weakens or an aggressive financial policy lead to Debt/EBITDA
sustained above 5.5x or free cash flow to debt declining to the
low-single digit percent.
The principal methodology used in these ratings was Media published
in June 2021.
McGraw-Hill Education, Inc. is a global provider of educational
materials and learning services targeting the higher education,
K-12, professional learning and information markets with content,
tools and services delivered via digital, print and hybrid
offerings. McGraw reported LTM September 2024 GAAP revenue of $2.03
billion.
METHANEX CORP: Egan-Jones Retains BB Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on December 5, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Methanex Corporation. EJR also withdrew its rating
on commercial paper issued by the Company.
Headquartered in Vancouver, Canada, Methanex Corporation produces
and markets methanol.
MILAN SAI: Unsecureds to Get $2,500 per Month for 60 Months
-----------------------------------------------------------
Milan SAI Joint Venture LLC filed with the U.S. Bankruptcy Court
for the Northern District of Texas a Plan of Reorganization under
Subchapter V dated January 3, 2025.
The Debtor operates a Super 8 Motel on land it owns at 3432 IH-20,
Stanton, Texas 79782 (the "Hotel").
The Debtor's revenue declined due to the Covid 19 pandemic, which
reduced occupancy rates. This led to the Debtor's inability to
fully service its debt and ultimately the filing of this case.
The Debtor scheduled a Secured Claim held by Pride of Austin High
Yield Fund I, LLC in the amount of $2,400,000.00. The Debtor
scheduled total Unsecured Claims in the amount of $40,500.00.
Under this Plan, however, Allowed Secured Claims will be paid in
full with interest and Unsecured Creditors will receive a Pro Rata
share of a pool of funds contributed by the Debtor. Therefore,
Creditors will receive at least as much under this Plan as they
would in a Chapter 7 liquidation.
Class 3 consists of Allowed Unsecured Claims. These Claims shall be
satisfied by the monthly distribution of each Claimant's Pro Rata
share of a pool of $2,500.00 per month funded by the Debtor, for a
period of 60 months from the Effective Date. These Claims are
Impaired, and the holders of these Claims are entitled to vote to
accept or reject the Plan.
Class 4 consists of Equity Interests. Equity Interests shall be
retained by the owners of said Interests.
The Debtor intends to make all payments required under the Plan
from the net profits earned from the operation of the Hotel and, if
necessary, the capital contributions of its owners.
A full-text copy of the Plan of Reorganization dated January 3,
2025 is available at https://urlcurt.com/u?l=sDIfrB from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Telephone: (972) 503-4033
Facsimile: (972) 503-4034
About Milan Sai Joint Venture
Milan Sai Joint Venture, LLC operates in the traveler accommodation
industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 24-33560) on Nov. 4,
2024, with up to $10 million in both assets and liabilities. Sunil
Kumar Patel, managing member, signed the petition.
Judge Michelle V. Larson oversees the case.
Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC, is
the Debtor's bankruptcy counsel.
MOORE HOLDINGS: Seeks Bankruptcy Protection in California
---------------------------------------------------------
On January 8, 2025, Moore Holdings 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 Moore Holdings LLC
Moore Holdings LLC a single asset real estate company headquartered
in Roseville, California.
Moore Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Cal. Case No. 25-20053) on January 8,
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.
Stephan M. Brown, Esq. of The Bankruptcy Group, P.C. represents the
Debtor as counsel.
NAKED JUICE: S&P Downgrades ICR to 'CCC', Outlook Negative
----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating to 'CCC' from
'CCC+' on U.S.-based Naked Juice LLC.
S&P said, "We also lowered our issue-level ratings on our
first-lien credit facility to 'CCC' from 'CCC+'. The recovery
rating remains '3', reflecting our expectation for meaningful
(50%-70%; rounded estimate: 50%) recovery in the event of a payment
default. We lowered the estimate to 50% from 60% due to a new 2024
first-lien term loan totaling $175 million (comprising $113 million
from financial sponsor PAI Partners and $62 million from PepsiCo)
maturing on Sept. 15, 2025. It is our understanding PepsiCo
converted $62 million of the $72 million in payables it was owed in
January and March of 2025 into a first-lien senior secured
position. Interest on the term loan will be payment-in-kind (PIK).
We also lowered our rating on the second-lien term loan to 'CC'
from 'CCC-', The recovery rating remains '6', reflecting our
expectation for negligible (0%-10%; rounded estimate: 0%)
recovery."
The negative outlook reflects increased likelihood of a default,
including a debt restructuring, over the next 12 months.
The downgrade reflects increased restructuring risk over the next
12 months due to Naked Juice's unsustainable capital structure.
Lower earnings, negative FOCF, and increased revolver borrowings
have weakened credit metrics. S&P said, "We now forecast a nearly
40% decline in EBITDA in 2024, leading to S&P Global
Ratings-adjusted leverage of about 14x and EBITDA interest coverage
of 1x in 2024 and 2025. We believe this could make it more
difficult for Naked Juice to meet its debt service requirements
unless it receives additional liquidity from its owners because we
expect liquidity will decline in 2025. Therefore, considering its
unsustainable capital structure, we believe there is an increased
risk that the company will not meet its debt service requirements
or that it could choose to restructure its debt in a way we would
likely consider tantamount to a default. Moreover, we believe the
distressed trading price of its debt may encourage a distressed
exchange."
S&P said, "We expect Naked Juice's performance will continue to
weaken. Profitability quickly deteriorated in 2024 primarily due to
weaker volumes, higher cost of oranges and ongoing operating
expenses to stand up the business. In the third quarter, gross
margin contracted 1,000 basis points due to higher orange costs. In
2025, we expect operating performance and cash flow will continue
to decline because of unfavorable business dynamics including weak
demand for juice products, unfavorable orange commodity costs, and
additional operating costs to support cost-savings programs. We
believe there is risk of higher-than-anticipated one-time costs and
working capital outflow, which could reduce our cash flow and
liquidity expectations in 2025. We estimate total liquidity,
consisting of cash and revolver availability as of Sept. 7, 2024,
was $264 million (pro forma for the 2024 cash term loan proceeds of
$113 million from PAI). It is our understanding PepsiCo converted
$62 million of the $72 million in payables it was owed in January
and March of 2025 to a first-lien senior secured position. Interest
on the term loan will be paid-in-kind. We forecast an FOCF deficit
of about $20 million in 2025 before repayments due to PepsiCo and
PAI in September and annual amortization. Notably, Naked Juice's
internal reporting was disrupted in the third quarter following the
final step in its enterprise resource planning system transition,
which weakened earnings and cash flow more than expected. We
believe the company continues to incur elevated costs to stand up
the business and its ERP system, though total year-to-date one-time
costs are unknown.
"We revised our liquidity assessment to weak from less than
adequate due to its significant cash outflow over the next 12
months. Naked Juice has payments due to PepsiCo and PAI in 2025;
$85 million in September due to PepsiCo for the working capital
true-up as well as repayment of the 2024 term loan to PAI and
PepsiCo. We forecast a total cash burn of about $310 million in
2025 (which is after the $85 million true-up due to PepsiCo and
repayment of about $190 million for the 2024 term loans including
PIK interest). This compares to $264 million pro forma liquidity on
Sept. 7, 2024. Given that these obligations are owed to PAI and
PepsiCo, they could be renegotiated due to the owners' interest in
the company, though we don't assume this in our liquidity
analysis."
The negative outlook reflects increased likelihood of a default,
including a debt restructuring, over the next 12 months.
S&P could lower our rating on Naked Juice if a default, including a
debt restructuring or distressed exchange, appears inevitable in
the subsequent six months.
S&P could raise its rating if it no longer envisions a default.
This could occur if:
-- Operating performance and cash flow strengthen, improving
liquidity; or
-- PAI and/or PepsiCo provide additional support by extending
payment maturity dates or injecting additional cash.
NATURE COAST: ROI Funding & Litigation Recoveries to Fund Plan
--------------------------------------------------------------
Nature Coast Development Group, LLC, filed with the U.S. Bankruptcy
Court for the Northern District of Florida a Disclosure Statement
for Chapter 11 Plan of Reorganization dated January 6, 2025.
The Debtor is the owner of four parcels of real property1 in
Gilchrest County, Florida. One of its four parcels of property
contains a partially constructed 65,000 square foot, five-story,
eighty-eight room, Best Western Premier Hotel in Fanning Springs,
Florida.
Since the dismissal of the First Bankruptcy Filing, multiple things
have occurred which now enable a confirmable plan. First, the
Debtor amended its claims and affirmative defenses in the Seacoast
Foreclosure action and obtained discovery from Seacoast
demonstrating that it appears not to have followed the requisite
procedures for servicing of the USDA B&I Loan. Second, Seacoast
applied the $3,515,000 or more that it was holding in the Debtor's
LIP Account to the balance of the loan, reducing Seacoast's claim
by more than $3,515,000.
Third, WB Services dismissed its lawsuit against the Debtor in the
United States District Court, leaving for a judicial determination
only how much the Debtor is owed from the Surety as a result of its
failures to pay or perform. Fourth, since the dismissal of the
First Bankruptcy Proceeding, Seacoast produced its appraisals
demonstrating the value of its collateral, which it did not produce
at any time previously. A combination of these facts makes
confirmation achievable. The Debtor intends to confirm the Plan
which meets each element of the confirmation standards under
Section 1129(a) and (b) of the Bankruptcy Code.
Due to the fact that the Debtor's hotel project's construction is
halted, the Debtor and its owners have limited liquidity. The
viability of the Plan depends on the Debtor successfully receiving
interim and permanent funding, proceeds from litigation against the
Surety and potentially Seacoast Bank, and/or from a sale of the
hotel in a manner that allows the payment of claims provided for by
the Plan. There is no guarantee that the Debtor will succeed in its
efforts.
Class 3 consists of Claims of Unsecured Creditors. Class 3
claimants will receive a pro rata share of funds available from ROI
Funding, LLC, Litigation Recoveries, or sale proceeds after payment
of Classes 1 and 2. Class 3 unsecured claims are subject to all
statutory, equitable and contractual subordination claims, rights
and grounds available to the Debtor, the Estates and pursuant to
this Plan, the Liquidating Trustee, which subordination claims,
rights and grounds are fully enforceable prior to, on and after the
Effective Date. If recoveries are insufficient to pay claims in
full, distributions shall cease upon exhaustion of recoveries.
Under the Plan, holders of Allowed Class 3 Unsecured Claims will
receive a pro rata share of funds available from ROI Funding, LLC,
litigation recoveries, or the proceeds of asset sales, after the
payment of Classes 1 (Priority Claims) and 2 (Secured Claims).
Class 3 claims are subject to any statutory, equitable, or
contractual subordination rights or agreements, which remain fully
enforceable both before and after the Effective Date. If available
funds are insufficient to pay Class 3 claims in full, distributions
will cease once recoveries are exhausted.
Class 3 is impaired because creditors are not guaranteed full
payment. As an impaired class, Class 3 is entitled to vote on the
Plan.
Class 4 Equity holders will retain their interests and be paid all
excess funds after satisfaction of Classes 1, 2, and 3, if
Litigation Recoveries are sufficient to satisfy all allowed claims
in full; or Equity Holders contribute additional funds sufficient
to satisfy the administrative and secured claims necessary to
implement the Plan. If neither condition is met, the Equity
Interests will be deemed canceled and will cease to exist.
The Plan provides for the creation of a Litigation Trust which will
be established to hold and prosecute any Litigation Claims against
among others: (i) the Surety; (ii) Seacoast; and (iii) any other
entities that the Liquidating Trustee determines may be liable to
the estate or its creditors. The Trust will be established for the
benefit of the estate and its creditors. The Trust will be funded
with: (i) an assignment of all estate claims against the Surety and
Seacoast; (ii) Contributions, if any, from creditors or equity
security holders, and (iii) if it becomes necessary, the sales
proceeds of the Debtor's real estate and other assets.
The Trustee shall employ counsel on a contingency fee basis,
minimizing the need for upfront funding. The Trustee shall also
employ a Construction Manager, as necessary, to oversee the
completion of the hotel project. The Construction Manager shall
develop a revised construction budget and timeline. The
Construction Manager shall also secure contractors and vendors
necessary to complete the project. The Trustee in conjunction with
the Construction Manager will work to select the most appropriate
flag to operate the hotel, and an appropriate management company to
facilitate the operation of the hotel.
The Debtor has secured several commitments for interim and
permanent financing. The Debtor has received a binding commitment
from ROI Funding, LLC, to lend up to $2,510,000.000 for the payment
of amounts due and payable on the Effective Date, including the
allowed secured claim of Seacoast, unless subordinated or
disallowed. In the event that the Court determines the allowed
secured claim of Seacoast is higher than expected, and alternative
financing cannot be secured to pay the allowed secured claim of
Seacoast in deferred cash payments with six percent interest, the
Liquidating Trustee will commence a marketing process to liquidate
the hotel property which shall not exceed twenty-four months.
A full-text copy of the Disclosure Statement dated January 6, 2025
is available at https://urlcurt.com/u?l=1ZyBuk from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Michael H. Moody, Esq.
Michael H. Moody Law, P.A.
1350 Market Street, Ste. 224
Tallahassee, FL 32312
Telephone: (850) 739-6970
Facsimile: (850) 739-6970
Email: Michael.Moody@MichaelHMoodyLaw.com
About Nature Coast Development Group
Nature Coast Development Group, LLC is the owner of four parcels of
real property in Gilchrest County, Florida.
The Debtor sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Fla. Case No. 24-10201) on Oct. 7, 2024. In the
petition signed by Marites Padot, president, the Debtor disclosed
up to $10 million in assets and up to $50 million in liabilities.
Judge Karen K. Specie oversees the case.
Michael H. Moody Law, PA, serves as the Debtor's counsel.
NEP BROADCASTING: KKR Income Marks $7.4MM Loan at 16% off
---------------------------------------------------------
KKR Income Opportunities Fund has marked its $7,495,000 loan
extended to NEP Broadcasting LLC to market at $6,315 or 84% of the
outstanding amount, according to the KKR Income's Form N-CSRS for
the semi-annual period ended October 31, 2024, filed with the
Securities and Exchange Commission.
KKR Income is a participant in a Second Lien Term Loan (SOFR + 7%)
to NEP Broadcasting LLC. The loan matures on October 19, 2026.
KKR Income was organized on March 17, 2011 as a statutory trust
under the laws of the State of Delaware. The Fund is a closed-end
registered management investment company, which commenced
operations on July 25, 2013. The Fund seeks to generate a high
level of current income, with a secondary objective of capital
appreciation. The Fund is diversified for purposes of the
Investment Company Act of 1940, as amended.
KKR Income is led by Rudy Pimentel, President; and Thomas Murphy,
Treasurer, Chief Accounting Officer & Chief Financial Officer. The
Fund can be reached through:
Rudy Pimentel
KKR Income Opportunities Fund
555 California Street, 50th Floor
San Francisco, CA 94104
Telephone: (415) 315-3620
- and -
Lori Hoffman
KKR Credit Advisors (US) LLC
555 California Street, 50th Floor
San Francisco, CA 94104
Telephone: (415) 315-3620
NEP Broadcasting, LLC provides broadcasting services. The Company
offers outside broadcast, studio production, audio and lighting,
host broadcast support, premium layout, augmented reality, live
event video display, and media management services. NEP
Broadcasting serves customers worldwide.
NEW PHILADELPHIA: Case Summary & Four Unsecured Creditors
---------------------------------------------------------
Debtor: New Philadelphia Baptist Church Inc.
1113 NW 79th Street
Miami, FL 33150
Chapter 11 Petition Date: January 9, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 25-10192
Debtor's Counsel: Chad Van Horn, Esq.
VAN HORN LAW GROUP, P.A.
500 NE 4th Street, Suite 200
Fort Lauderdale, FL 33301
Tel: (954) 765-3166
E-mail: chad@cvhlawgroup.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rickie Kent Robinson Sr. as president.
A copy of the Debtor's list of four unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/VKDX5BY/New_Philadelphia_Baptist_Church__flsbke-25-10192__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/VPTKNPA/New_Philadelphia_Baptist_Church__flsbke-25-10192__0001.0.pdf?mcid=tGE4TAMA
NEXTTRIP INC: Converts $1.75MM Notes Owed to CEO, Chair to Shares
-----------------------------------------------------------------
On December 31, 2024, NextTrip, Inc., entered into debt conversion
agreements with its chief executive officer William Kerby and
chairman of the board Donald P. Monaco whereby the Related Parties
and the Company agreed to convert $1.75 million in existing
unsecured promissory notes owed to the Related Parties for monies
advanced to the Company into an aggregate of 579,469 restricted
shares of newly designated Series L Nonvoting Convertible Preferred
Stock of the Company at a purchase price of $3.02 per share, the
Company disclosed in a Form 8-K filing with the U.S. Securities and
Exchange Commission.
The Series L Preferred shall be convertible into the Company's
common stock on such date that the Company obtains stockholder
approval to remove the Exchange Cap, subject to beneficial
ownership limitations.
Each of the Offerings include conversion or exercise limitations
which provide that the Company shall not issue or sell any shares
of Common Stock pursuant to the conversions of preferred stock or
exercises of warrants to the extent that after giving effect
thereto, the aggregate number of shares of Common Stock that would
be issued would exceed 19.99% of the shares of Common Stock
outstanding on the date of each such Offering (which number of
shares shall be reduced, on a share-for-share basis, by the number
of shares of Common Stock issued or issuable pursuant to any
transaction or series of transactions that may be aggregated with
the transactions contemplated by each such separate Offering under
applicable rules of the Nasdaq Capital Market) unless and until the
Company elects to solicit stockholder approval of the issuance of
Common Stock as contemplated by the Purchase Agreements and the
stockholders of the Company have in fact approved such issuance in
accordance with the applicable rules and regulations of the Nasdaq
Capital Market.
The Company intends to use the net proceeds from the Offerings as
working capital for general corporate purposes.
Series L Nonvoting Convertible Preferred Stock
On January 3, 2025, the Company filed a Certificate of Designation
of Series L Convertible Preferred Stock with the Secretary of State
of the State of Nevada, designating 579,469 shares of the Company's
preferred stock as Series L Convertible Preferred Stock, par value
$0.001 per share.
The terms and conditions set forth in the Series L Certificate of
Designation are summarized below:
Ranking. The Series L Preferred rank pari passu to the Company's
common stock.
Dividends. Holders of Series L Preferred will be entitled to
dividends, if, as and when declared by the Board out of funds at
the time legally available therefor, dividends in the amount of 12%
per annum per share of Preferred Stock (subject to appropriate
adjustment in the event of any stock dividend, stock split,
combination or other similar recapitalization with respect to the
Preferred Stock), and no more. Dividends on the Preferred Stock
shall be fully cumulative, shall accrue without interest and
without compounding from the date of first issuance, and shall, if
declared by the Board, be payable quarterly in arrears on March 1,
June 1, September 1 and December of each year. All dividends on the
Preferred Stock shall be payable (i) in shares of Common Stock of
the Company at the Nasdaq Closing Price; provided, however, that
such prices shall not be less than $3.02 per share, or (ii) cash,
at the election of a majority of the independent directors. Any
dividend which shall not be paid on required dividend date on which
it shall become due shall be deemed to be "past due" until such
dividend shall be paid or until the share of Preferred Stock with
respect to which such dividend became due shall no longer be
outstanding, whichever is the earlier to occur. In the event that
any dividend becomes "past due" the per annum rate shall increase
to 14%.
Voting. Except as provided by the Charter, or as otherwise required
by the Nevada Revised Statutes, holders of Series L Preferred are
not entitled to voting rights However, the Company may not, without
the consent of holders of a majority of the outstanding shares of
Series L Preferred, (i) alter or change adversely the powers,
preferences or rights given to the Series L Preferred or alter or
amend the Series L Certificate of Designation, (ii) amend its
Charter or other charter documents in any manner that adversely
effects any rights of the holders of the Series L Preferred, or (c)
enter into any agreement with respect to the foregoing.
Conversion. On the third business day after the date that the
Company's stockholders approve the conversion of Series L Preferred
into shares of Common Stock in accordance with the listing rules of
Nasdaq, each outstanding share of Series L Preferred shall
automatically be converted into one share of Company common stock
(subject to adjustment under certain limited circumstances) (the
"Series L Conversion Ratio"), subject to beneficial ownership
limitations.
Liquidation. In the event of any liquidation, dissolution or
winding up of the Company, either voluntary or involuntary, holders
of Series L Preferred will be entitled to participate, on an
as-converted-to-common stock basis calculated based on the Series L
Conversion Ratio, with holders of Company common stock in any
distribution of assets of the Company to holders of the Company's
common stock.
A full-text copy of the Form 8-K is available at
https://urlcurt.com/u?l=TXJIfC
About NextTrip Inc.
NextTrip (formerly known as Sigma Additive Solutions, Inc. --
https://investors.nexttrip.com -- is an innovative technology
company that is building next generation solutions to power the
travel industry. NextTrip, through its subsidiaries, provides
travel technology solutions with sales originating in the United
States, with a primary emphasis on accommodations, hotels, flights,
wellness, and all-inclusive travel packages. Its proprietary
booking engine, branded as NXT2.0, provides travel distributors
access to a sizeable inventory. NextTrip's NXT2.0 booking
technology was built upon a platform acquired in June 2022, which
previously powered the Bookit.com business, a well-established
online leisure travel agent generating over $400 million in annual
sales as recently as 2019 (pre-pandemic).
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated Sept. 4, 2024, citing that the Company has suffered recurring
losses from operations and has a negative working capital that
raise substantial doubt about its ability to continue as a going
concern.
NEXTTRIP INC: Inks $1.2MM Note with Series K Investors
------------------------------------------------------
On December 31, 2024, NextTrip, Inc., entered into a series of
agreements whereby an investor agreed to loan the Company up to
$1,000,000 against an unsecured promissory note. The $1M Note is
payable in full on the earlier date of one year from issuance or
the date the Company completes a financing of $5 million or
greater, is unsecured and has no prepayment penalty, the Company
disclosed in a Form 8-K filing with the U.S. Securities and
Exchange Commission.
In connection with the $1 million Note, the investor received
fifteen percent (15%) guaranteed prepaid interest issued in the
form of Series K Nonvoting Convertible Preferred Stock of the
Company as well as 100% warrant coverage, as follows: (1) a warrant
exercisable in cash to purchase up to 500,000 shares of Common
Stock and (2) a cashless warrant to purchase up to 500,000 shares
of Common Stock, each at an exercise price of $4.00 per share for a
period of three years which is exercisable six months from the
issuance date.
Concurrently, on December 31, 2024, the Company entered into a
series of agreements whereby additional investors agreed to loan
the Company $220,000 against an unsecured promissory note. The
$220k Note has a maturity date of one (1) year from the date
thereof, is unsecured and has no prepayment penalty.
In connection with the $220k Note, the investors also received
fifteen percent (15%) guaranteed prepaid interest issued in the
form of Series K Preferred Stock as well as a warrant on to
purchase up to 220,000 shares of the Company's common stock. The
warrant has an exercise price of $4.00 per share and is exercisable
for a period of three years, beginning the issuance date. If at the
time of any exercise of the warrant, there is no effective
registration statement registering, or no current prospectus
available for, the issuance or resale of the shares by the
investor, then such investor may elect to exercise up to 50% of the
warrant on a cashless basis. In connection with the $220k Note, the
Company entered into a registration rights agreement with respect
to the shares of Common Stock underlying the Series K Preferred
Stock and Half Cashless Warrant (the "Registration Rights
Agreement").
Each Series K investor entered into a securities purchase agreement
(the "Series K Purchase Agreement") whereby an aggregate of 60,595
restricted shares of Series K Preferred, (the "Series K Offering")
at a purchase price of $3.02 per share.
The Series K Preferred shall be convertible into the Company's
common stock (the "Common Stock") on such date that the Company
obtains stockholder approval to remove the Exchange Cap.
The Series K Purchase Agreement contains customary representations,
warranties, conditions to closing, indemnification rights and
obligations of the parties and termination provisions.
Each of the Offerings include conversion or exercise limitations
which provide that the Company shall not issue or sell any shares
of Common Stock pursuant to the conversions of preferred stock or
exercises of warrants to the extent that after giving effect
thereto, the aggregate number of shares of Common Stock that would
be issued would exceed 19.99% of the shares of Common Stock
outstanding on the date of each such Offering (which number of
shares shall be reduced, on a share-for-share basis, by the number
of shares of Common Stock issued or issuable pursuant to any
transaction or series of transactions that may be aggregated with
the transactions contemplated by each such separate Offering under
applicable rules of the Nasdaq Capital Market) (the "Exchange Cap")
unless and until the Company elects to solicit stockholder approval
of the issuance of Common Stock as contemplated by the Purchase
Agreements and the stockholders of the Company have in fact
approved such issuance in accordance with the applicable rules and
regulations of the Nasdaq Capital Market.
The Company intends to use the net proceeds from the Offerings as
working capital for general corporate purposes.
Series K Nonvoting Convertible Preferred Stock
On January 3, 2025, the Company filed a Certificate of Designation
of Series K Convertible Preferred Stock (the "Series K Certificate
of Designation") with the Secretary of State of the State of
Nevada, designating 60,595 shares of the Company's preferred stock
as Series K Convertible Preferred Stock, par value $0.001 per
share.
The terms and conditions set forth in the Series K Certificate of
Designation are summarized below:
Ranking. The Series K Preferred rank pari passu to the Company's
common stock.
Dividends. Holders of Series K Preferred will be entitled to
dividends, on an as-converted basis, equal to dividends actually
paid, if any, on shares of Company common stock.
Voting. Except as provided by the Charter, or as otherwise required
by the Nevada Revised Statutes, holders of Series K Preferred are
not entitled to voting rights. However, the Company may not,
without the consent of holders of a majority of the outstanding
shares of Series K Preferred, (i) alter or change adversely the
powers, preferences or rights given to the Series K Preferred or
alter or amend the Series K Certificate of Designation, (ii) amend
its Charter or other charter documents in any manner that adversely
effects any rights of the holders of the Series K Preferred, or (c)
enter into any agreement with respect to the foregoing.
Conversion. On the third business day after the date that the
Company's stockholders approve the conversion of Series K Preferred
into shares of Common Stock in accordance with the listing rules of
Nasdaq, each outstanding share of Series K Preferred shall
automatically be converted into one share of Company common stock
(subject to adjustment under certain limited circumstances) (the
"Series K Conversion Ratio"), subject to beneficial ownership
limitations.
Liquidation. In the event of any liquidation, dissolution or
winding up of the Company, either voluntary or involuntary, holders
of Series K Preferred will be entitled to participate, on an
as-converted-to-common stock basis calculated based on the Series K
Conversion Ratio, with holders of Company common stock in any
distribution of assets of the Company to holders of the Company's
common stock.
A full-text copy of the Form 8-K is available at
https://urlcurt.com/u?l=TXJIfC
About NextTrip Inc.
NextTrip (formerly known as Sigma Additive Solutions, Inc. --
https://investors.nexttrip.com -- is an innovative technology
company that is building next generation solutions to power the
travel industry. NextTrip, through its subsidiaries, provides
travel technology solutions with sales originating in the United
States, with a primary emphasis on accommodations, hotels, flights,
wellness, and all-inclusive travel packages. Its proprietary
booking engine, branded as NXT2.0, provides travel distributors
access to a sizeable inventory. NextTrip's NXT2.0 booking
technology was built upon a platform acquired in June 2022, which
previously powered the Bookit.com business, a well-established
online leisure travel agent generating over $400 million in annual
sales as recently as 2019 (pre-pandemic).
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated Sept. 4, 2024, citing that the Company has suffered recurring
losses from operations and has a negative working capital that
raise substantial doubt about its ability to continue as a going
concern.
NEXTTRIP INC: Inks Pact to Sell $500K Series M Shares to Investors
------------------------------------------------------------------
On December 31, 2024, NextTrip, Inc., entered into a securities
purchase agreement with certain accredited investors, pursuant to
which the Company may issue and sell up to $500,000 of restricted
shares of newly designated Series M Nonvoting Convertible Preferred
Stock of the Company, at a purchase price of $3.02 per share, the
Company disclosed in a Form 8-K filing with the U.S. Securities and
Exchange Commission.
In addition, as part of the Series M Offering, on December 31,
2024, the Company entered into a debt conversion agreement with an
existing lender whereby the lender and the Company agreed to
convert $350,000 in existing unsecured promissory notes owed to the
lender for monies advanced to the Company into Series M Preferred.
The Series M Preferred shall be convertible into the Company's
Common Stock on such date that the Company obtains stockholder
approval to remove the Exchange Cap.
The Series M Purchase Agreement contains customary representations,
warranties, conditions to closing, indemnification rights and
obligations of the parties and termination provisions.
Each of the Offerings include conversion or exercise limitations
which provide that the Company shall not issue or sell any shares
of Common Stock pursuant to the conversions of preferred stock or
exercises of warrants to the extent that after giving effect
thereto, the aggregate number of shares of Common Stock that would
be issued would exceed 19.99% of the shares of Common Stock
outstanding on the date of each such Offering (which number of
shares shall be reduced, on a share-for-share basis, by the number
of shares of Common Stock issued or issuable pursuant to any
transaction or series of transactions that may be aggregated with
the transactions contemplated by each such separate Offering under
applicable rules of the Nasdaq Capital Market) (the "Exchange Cap")
unless and until the Company elects to solicit stockholder approval
of the issuance of Common Stock as contemplated by the Purchase
Agreements and the stockholders of the Company have in fact
approved such issuance in accordance with the applicable rules and
regulations of the Nasdaq Capital Market.
The Company intends to use the net proceeds from the Offerings as
working capital for general corporate purposes.
Series M Nonvoting Convertible Preferred Stock
On January 3, 2025, the Company filed a Certificate of Designation
of Series M Convertible Preferred Stock (the "Series M Certificate
of Designation") with the Secretary of State of the State of
Nevada, designating 165,562 shares of the Company's preferred stock
as Series M Convertible Preferred Stock, par value $0.001 per
share.
The terms and conditions set forth in the Series M Certificate of
Designation are summarized below:
Ranking. The Series M Preferred rank pari passu to the Company's
common stock.
Dividends. Holders of Series M Preferred will be entitled to
dividends, if, as and when declared by the Board out of funds at
the time legally available therefor, dividends in the amount of 12%
per annum per share of Preferred Stock (subject to appropriate
adjustment in the event of any stock dividend, stock split,
combination or other similar recapitalization with respect to the
Preferred Stock), and no more. Dividends on the Preferred Stock
shall be fully cumulative, shall accrue without interest and
without compounding from the date of first issuance, and shall, if
declared by the Board, be payable quarterly in arrears on March 1,
June 1, September 1 and December of each year. All dividends on the
Preferred Stock shall be payable (i) in shares of Common Stock of
the Company at the Nasdaq Closing Price; provided, however, that
such prices shall not be less than $3.02 per share, or (ii) cash,
at the election of a majority of the independent directors. Any
dividend which shall not be paid on required dividend date on which
it shall become due shall be deemed to be "past due" until such
dividend shall be paid or until the share of Preferred Stock with
respect to which such dividend became due shall no longer be
outstanding, whichever is the earlier to occur. In the event that
any dividend becomes "past due" the per annum rate shall increase
to 14%.
Voting. Except as provided by the Charter, or as otherwise required
by the Nevada Revised Statutes, holders of Series M Preferred are
not entitled to voting rights. However, the Company may not,
without the consent of holders of a majority of the outstanding
shares of Series M Preferred, (i) alter or change adversely the
powers, preferences or rights given to the Series M Preferred or
alter or amend the Series M Certificate of Designation, (ii) amend
its Charter or other charter documents in any manner that adversely
effects any rights of the holders of the Series M Preferred, or (c)
enter into any agreement with respect to the foregoing.
Conversion. On the third business day after the date that the
Company's stockholders approve the conversion of Series M Preferred
into shares of Common Stock in accordance with the listing rules of
Nasdaq, each outstanding share of Series M Preferred shall
automatically be converted into one share of Company common stock
(subject to adjustment under certain limited circumstances) (the
"Series M Conversion Ratio"), subject to beneficial ownership
limitations.
Liquidation. In the event of any liquidation, dissolution or
winding up of the Company, either voluntary or involuntary, holders
of Series M Preferred will be entitled to participate, on an
as-converted-to-common stock basis calculated based on the Series M
Conversion Ratio, with holders of Company common stock in any
distribution of assets of the Company to holders of the Company's
common stock.
A full-text copy of the Form 8-K is available at
https://urlcurt.com/u?l=TXJIfC
About NextTrip Inc.
NextTrip (formerly known as Sigma Additive Solutions, Inc. --
https://investors.nexttrip.com -- is an innovative technology
company that is building next generation solutions to power the
travel industry. NextTrip, through its subsidiaries, provides
travel technology solutions with sales originating in the United
States, with a primary emphasis on accommodations, hotels, flights,
wellness, and all-inclusive travel packages. Its proprietary
booking engine, branded as NXT2.0, provides travel distributors
access to a sizeable inventory. NextTrip's NXT2.0 booking
technology was built upon a platform acquired in June 2022, which
previously powered the Bookit.com business, a well-established
online leisure travel agent generating over $400 million in annual
sales as recently as 2019 (pre-pandemic).
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated Sept. 4, 2024, citing that the Company has suffered recurring
losses from operations and has a negative working capital that
raise substantial doubt about its ability to continue as a going
concern.
NEXTTRIP INC: Sells 297K Series J Preferred Shares to Investors
---------------------------------------------------------------
On December 31, 2024, NextTrip, Inc., entered into a securities
purchase agreement with certain accredited investors, pursuant to
which the Company issued and sold an aggregate of 297,788
restricted shares of newly designated Series J Nonvoting
Convertible Preferred Stock of the Company at a purchase price of
$3.02 per share, the Company disclosed in a Form 8-K filing with
the U.S. Securities and Exchange Commission.
The Series J Preferred shall be convertible into the Company's
common stock on such date that the Company obtains stockholder
approval to remove the Exchange Cap.
The Series J Purchase Agreement contains customary representations,
warranties, conditions to closing, indemnification rights and
obligations of the parties and termination provisions.
Each of the Offerings include conversion or exercise limitations
which provide that the Company shall not issue or sell any shares
of Common Stock pursuant to the conversions of preferred stock or
exercises of warrants to the extent that after giving effect
thereto, the aggregate number of shares of Common Stock that would
be issued would exceed 19.99% of the shares of Common Stock
outstanding on the date of each such Offering (which number of
shares shall be reduced, on a share-for-share basis, by the number
of shares of Common Stock issued or issuable pursuant to any
transaction or series of transactions that may be aggregated with
the transactions contemplated by each such separate Offering under
applicable rules of the Nasdaq Capital Market) (the "Exchange Cap")
unless and until the Company elects to solicit stockholder approval
of the issuance of Common Stock as contemplated by the Purchase
Agreements and the stockholders of the Company have in fact
approved such issuance in accordance with the applicable rules and
regulations of the Nasdaq Capital Market.
The Company intends to use the net proceeds from the Offerings as
working capital for general corporate purposes.
Series J Nonvoting Convertible Preferred Stock
On January 3, 2025, the Company filed a Certificate of Designation
of Series J Convertible Preferred Stock (the "Series J Certificate
of Designation") with the Secretary of State of the State of
Nevada, designating 297,788 shares of the Company's preferred stock
as Series J Convertible Preferred Stock, par value $0.001 per
share.
The terms and conditions set forth in the Series J Certificate of
Designation are summarized below:
Ranking. The Series J Preferred rank pari passu to the Company's
common stock.
Dividends. Holders of Series J Preferred will be entitled to
dividends, on an as-converted basis, equal to dividends actually
paid, if any, on shares of Company common stock.
Voting. Except as provided by the Charter, or as otherwise required
by the Nevada Revised Statutes, holders of Series J Preferred are
not entitled to voting rights. However, the Company may not,
without the consent of holders of a majority of the outstanding
shares of Series J Preferred, (i) alter or change adversely the
powers, preferences or rights given to the Series J Preferred or
alter or amend the Series J Certificate of Designation, (ii) amend
its Charter or other charter documents in any manner that adversely
effects any rights of the holders of the Series J Preferred, or (c)
enter into any agreement with respect to the foregoing.
Conversion. On the third business day after the date that the
Company's stockholders approve the conversion of Series J Preferred
into shares of Common Stock in accordance with the listing rules of
Nasdaq, each outstanding share of Series J Preferred shall
automatically be converted into one share of Company common stock
(subject to adjustment under certain limited circumstances) (the
"Series J Conversion Ratio"), subject to beneficial ownership
limitations.
Liquidation. In the event of any liquidation, dissolution or
winding up of the Company, either voluntary or involuntary, holders
of Series J Preferred will be entitled to participate, on an
as-converted-to-common stock basis calculated based on the Series J
Conversion Ratio, with holders of Company common stock in any
distribution of assets of the Company to holders of the Company's
common stock.
A full-text copy of the Form 8-K is available at
https://urlcurt.com/u?l=TXJIfC
About NextTrip Inc.
NextTrip (formerly known as Sigma Additive Solutions, Inc. --
https://investors.nexttrip.com -- is an innovative technology
company that is building next generation solutions to power the
travel industry. NextTrip, through its subsidiaries, provides
travel technology solutions with sales originating in the United
States, with a primary emphasis on accommodations, hotels, flights,
wellness, and all-inclusive travel packages. Its proprietary
booking engine, branded as NXT2.0, provides travel distributors
access to a sizeable inventory. NextTrip's NXT2.0 booking
technology was built upon a platform acquired in June 2022, which
previously powered the Bookit.com business, a well-established
online leisure travel agent generating over $400 million in annual
sales as recently as 2019 (pre-pandemic).
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated Sept. 4, 2024, citing that the Company has suffered recurring
losses from operations and has a negative working capital that
raise substantial doubt about its ability to continue as a going
concern.
NORTH LIBERTY: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: North Liberty Transportation, LLC
1350 Kennel Court, Unit C1
North Liberty, IA 52317
Business Description: The Debtor operates within the General
Freight Trucking sector, providing
transportation and logistics services for a
variety of goods across various regions.
Chapter 11 Petition Date: January 9, 2025
Court: United States Bankruptcy Court
Northern District of Iowa
Case No.: 25-00025
Debtor's Counsel: Siobhan Briley, Esq.
PUGH HAGAN PRAHM PLC
425 E. Oakdale Blvd., Suite 201
Coralville, IA 52241
Tel: (319) 351-2028X107
E-mail: sbriley@pughhagan.com
Total Assets: $3,422,463
Total Liabilities: $4,716,117
The petition was signed by Michael Prier as manager.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/Z7UVW3Y/North_Liberty_Transportation_LLC__ianbke-25-00025__0001.0.pdf?mcid=tGE4TAMA
NORTHLAND MANAGEMENT: Case Summary & Four Unsecured Creditors
-------------------------------------------------------------
Debtor: Northland Management Corp.
1773 Westborough Dr., Suite 927
Kary TX 77449
Business Description: Northland Management Corp. is a Single Asset
Real Estate Debtor, as defined in 11 U.S.C.
Section 101(51B).
Chapter 11 Petition Date: January 10, 2025
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 25-30226
Judge: Hon. Eduardo V Rodriguez
Debtor's Counsel: Larry A. Vick, Esq.
LARRY A. VICK
13501 Katy Freeway, Suite 3474
Houston TX 77079
Tel: (832) 413-3331
Fax: (832) 202-2821
E-mail: lv@larryvick.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Daniel L. Ritz, Jr. as president.
A full-text copy of the petition, which includes a list of the
Debtor's four unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/RRKIJLQ/Northland_Management_Corp__txsbke-25-30226__0001.0.pdf?mcid=tGE4TAMA
NOVELIS CORP: Moody's Rates New Sr. Unsecured Notes Due 2030 'Ba3'
------------------------------------------------------------------
Moody's Ratings assigned a Ba3 rating to the proposed backed senior
unsecured notes due 2030 issued by Novelis Corporation, a
wholly-owned subsidiary of Novelis Inc., and guaranteed by Novelis
Inc. and certain of its subsidiaries. Proceeds from the new notes
will be used to reduce the ABL borrowings and for general corporate
purposes. All other ratings remain unchanged, including Novelis'
corporate family rating of Ba2, Probability of Default Rating of
Ba2-PD and the Ba3 ratings of the existing backed senior unsecured
notes of Novelis Corporation and Novelis Sheet Ingot GmbH. The
outlook is negative.
The assigned rating remains subject to Moody's review of the final
terms and conditions of the proposed financing.
RATINGS RATIONALE
Novelis' Ba2 CFR reflects the company's large scale and significant
market position in the number of end markets including can
packaging where it enjoys a leading market share. The rating
considers the company's broad geographic footprint with operations
in North and South America, Europe and Asia. The rating also
factors in the company's ability to generate significant operating
cash flow and expectations that the recently completed and
commissioning projects could support growth in earnings and cash
flows in the next 2-3 years.
At the same time, the rating incorporates a certain degree of
inherent industry and business volatility. Novelis' credit metrics
had previously been strong for its Ba2 CFR. However, a significant
increase in the Bay Minette project capex which created the need
for more debt, sharply higher scrap prices, weaker demand from the
automotive, specialty and aerospace markets in certain regions and
the likely slower projected earnings growth and higher cash burn in
FY2025-2027 will erase this cushion, leading to the overall weaker
credit profile until the project is completed and ramped up to full
capacity.
In February, 2024, Novelis updated the estimated capital cost to
build the new greenfield rolling and recycling plant in Bay
Minette, Alabama with the initial capacity of 600kt to $4.1
billion, including contingency, from $2.5 billion. The project
completion timeline was also extended to the second half of
calendar year 2026 (FY2027) from FY2026 previously announced.
According to the company, with a high level of project engineering
complete and all key equipment and the majority of materials
contracted, management is confident that the project will be
completed within the new parameters.
In the LTM ended September 30, 2024, Novelis generated about $1.7
billion in Moody's-adjusted EBITDA, and leverage rose incrementally
to 3.7x from 3.5x in FY2024 (March-end). Free cash flow (after
dividends to Hindalco) in the LTM was modestly negative at $135
million, as higher capex exceeded cash flow from operations.
Moody's estimate that Novelis will generate about $1.8 billion in
Moody's-adjusted EBITDA in FY2025 and $1.8-1.9 billion in FY2026.
Moody's also expect Novelis to be significantly free cash flow
negative in FY2025-27.
Moody's anticipate that Novelis will need to raise new debt in
FY2025-26 to help fund its growth capex and to maintain the
adequate cash levels on the balance sheet. Under this base case
scenario and considering the projected modest earnings growth and
higher gross debt, Moody's-adjusted Debt/EBITDA, will likely
increase to 4.2-4.5x by the end of FY2026 (March 2026). Moody's
leverage estimate excludes the company's factored trade receivables
outstanding, which Novelis stopped disclosing in FY2023. Despite
the lack of disclosures, Moody's consider these arrangements to be
debt like.
The negative outlook reflects Moody's expectations that as a result
of high capex spending, demand headwinds in certain end markets and
regions, lower projected profitability and higher forecast debt
levels, Novelis's credit metrics will deteriorate in the next 12-18
months and will be weak for the current rating.
Novelis has an adequate liquidity position (SGL-3) supported by its
$1,071 million cash position as of September 30, 2024, and $845
million available under its $2 billion senior secured asset-based
revolving credit facility (ABL) maturing in August 2027 (unrated),
which is subject to certain springing requirements concerning
timing of repayment of the term loan and other debt facilities. The
ABL is secured by accounts receivable and inventory. If, at any
time, the availability under the ABL is less than the greater of
(a) $150 million and (b) 10% of the lesser of the facility
commitment or the borrowing base, the company will be required to
maintain a minimum fixed charge coverage of at least 1.25x.
Availability is viewed as remaining sufficient such that this will
not be tested.
The company's secured term loan facilities (unrated) have a
covenant restricting senior secured net leverage to no more than
3.5:1. The company's closest material debt maturity is its senior
secured $750 million incremental term loan maturing in September,
2026. The term loan facilities have a covenant restricting senior
secured net leverage to no more than 3.5x and interest coverage
ratio covenant of at least 2x, Moody's expect the company to remain
in full compliance with these covenants. In addition, the company
has short-term credit facilities in Korea, Brazil and China to
support operations in these countries.
The Ba3 rating on the new and existing senior unsecured notes
reflects their effective subordination to the significant amount of
secured debt under the term loans, the ABL and priority payables.
The notes have a downstream guarantee from Novelis Inc. and are
guaranteed by all of Novelis' existing and future US restricted
subsidiaries, certain existing Canadian and other non-US foreign
restricted subsidiaries.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's would consider an upgrade of Novelis Inc.'s credit ratings
if the company completes the development of the Bay Minette project
as planned. Quantitatively, an upgrade would be considered of
leverage (adjusted debt/EBITDA) improves to and is sustained below
3x, adjusted EBIT margin is sustained above 8%,
(CFO-Dividends)/Debt is sustained above 30% and free cash remains
positive on a sustained basis.
Novelis' ratings could be downgraded if liquidity, measured as cash
plus ABL availability, evidences a material deterioration, if
company makes substantial debt-financed acquisitions, materially
increases its capex spending or if shareholder returns meaningfully
exceed the capital allocation framework targets established by
Hindalco Industries Limited, the ultimate parent company of Novelis
Inc. Expectations of significant production rate cuts by the
company or its customers, reduced profitability or an extended
slump in the end-markets served could lead to negative pressure on
the ratings. Quantitatively, ratings could be downgraded if the
adjusted EBIT margin is expected to be sustained below 5% or (Cash
flow from operations less dividends)/debt is sustained below 15%
and leverage, measured as debt/EBITDA ratio, is expected to be
sustained above 4x.
Headquartered in Atlanta, Georgia, Novelis is the world's largest
producer of aluminum rolled products. The company operates through
four regional segments, North America, Europe, Asia and South
America. While Novelis sells into a number of end markets, the
company generates nearly 60% of sales in the can sheet market.
Novelis generated approximately $16.5 billion in revenues for the
twelve months ended September 30, 2024. Novelis is ultimately owned
by Hindalco Industries Limited (unrated) domiciled in India.
The principal methodology used in this rating was Steel published
in November 2021.
NUGEN GROUP: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Nugen Group, Incorporated
Urb. Roosevelt
464 Calle Ing. Jose. A Canals
San Juan, PR 00918
Business Description: The Debtor operates within the Special Food
Services industry.
Chapter 11 Petition Date: January 9, 2025
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 25-00045
Debtor's Counsel: Alexis Fuentes-Hernandez, Esq.
FUENTES LAW OFFICES, LLC
P.O. Box 9022726
San Juan PR 00902-2726
Tel: (787) 722-5215
E-mail: fuenteslaw@icloud.com
Total Assets: $700,000
Total Liabilities: $1,909,827
The petition was signed by Gerardo D. Navarro as president.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/APZDOZA/NUGEN_GROUP_INCORPORATED__prbke-25-00045__0001.0.pdf?mcid=tGE4TAMA
NUGEN GROUP: Sec. 341(a) Meeting of Creditors on February 10
------------------------------------------------------------
On January 9, 2025, Nugen Group Incorporated filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of Puerto
Rico.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on February 10,
2025 at 11:00 AM via Telephonic Conference Information for
AUST/Trial Attys.
About Nugen Group Incorporated
Nugen Group Incorporated is a Puerto Rico-based food services
company operating in San Juan.
Nugen Group Incorporated sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.P.R. Case No. 25-00045) on January 9,
2025. In its petition, the Debtor reports estimated assets between
$500,000 and $1 million and estimated liabilities between $1
million and $10 million.
Alexis Fuentes-Hernandez of Fuentes Law Offices, LLC represents the
Debtor as counsel.
OIL STATES: Egan-Jones Retains B- Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on December 2, 2024, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Oil States International, Inc. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Houston, Texas, Oil States International, Inc.
provides specialty products and services to oil and gas drilling
and production companies.
ONDAS HOLDINGS: C&P Capital Holds 6.59% Equity Stake
----------------------------------------------------
Charles & Potomac Capital, LLC, disclosed in a Schedule 13D filing
with the U.S. Securities and Exchange Commission that as of
December 31, 2024, it beneficially owns 6,215,286 shares of Ondas
Holdings Inc.'s common stock, representing 6.59% of the 91,325,029
shares of the Company's common stock outstanding as of December 31,
2024.
Joseph V. Popolo also disclosed that as of December 31, 2024, he
beneficially owns 7,599,531 shares of Ondas Holdings Inc.'s common
stock, representing 8.32% of the 91,325,029 shares of the Company's
common stock outstanding as of December 31, 2024.
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. Ondas Networks,
American Robotics, and Airobotics together provide users in
defense, homeland security, public safety, and other critical
industrial and government security and infrastructure markets with
improved connectivity, situational awareness, 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.
As of September 30, 2024, Ondas Holdings had $80,158,656 in total
assets, $47,063,442 in total liabilities, $18,176,422 in
redeemable
noncontrolling interest, and $14,918,792 in total shareholders'
equity.
OWENS-ILLINOIS GROUP: Egan-Jones Retains B+ Sr. Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on December 2, 2024, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Owens-Illinois Group, Inc. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Perrysburg, Ohio, Owens-Illinois Group, Inc.
manufactures and sells glass containers.
PENN ENTERTAINMENT: Egan-Jones Retains B- Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on December 6, 2024, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by PENN Entertainment, Inc. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Wyomissing, Pennsylvania, PENN Entertainment, Inc.
owns and operates casinos, hotels, and racetracks facilities.
PLASTIC SUPPLIERS: To Hold Chapter 11 Auction on January 27
-----------------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that on January
10, 2025, a New Jersey bankruptcy judge authorized Plastic
Suppliers, a producer of compostable films and plastic packaging,
to proceed with an auction of its business on January 27, 2025,
setting a $13 million baseline bid.
The judge dismissed objections that the sale was proceeding too
quickly, the report states, according to the report.
About Plastic Suppliers Inc.
Plastic Suppliers Inc., doing business as PSI, Earthfirst Films,
and Earthfirst Films by PSI is a global manufacturer of innovative,
environmentally friendly thin-gauged, bio-based material using
distinctive biopolymers such as Polylactic Acid ("PLA") and
Polyhydroxyalkanoates ("PHA"). They also produce
petrochemical-based films. They develop highly engineered
application-specific solutions for a wide range of companies in the
"Consumer Packaged Goods" and industrial markets. The Debtors
provide their sustainable film solutions to customers in the
Americas, EMEA region, and Asia. The Debtors' primary markets
include food and beverage packaging, architecture products, medical
equipment, personal care, office, industrial and laminated films
for SME digital printers. The Debtors' products are compostable and
recyclable and are utilized for, among other things, single-purpose
bags, mailers, shrink sleeves, window packaging, envelopes, flow
wraps, filters, transparent sealants, barrier sealants, print
webs, adhesive labels, thermoforming films and laminates.
Plastic Suppliers and its affiliates, Speciality Films, Inc. and
Sidaplax, Inc., sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Lead Case No. 24-22549) on December
22, 2024. Michael DuFrayne, president and chief executive officer
of Plastic Suppliers, signed the petitions.
At the time of the filing, Plastic Suppliers reported $10 million
to $50 million in both assets and liabilities.
Judge Andrew B. Altenburg Jr. handles the cases.
The Debtors are represented by Stephen M. Packman, Esq., and
Douglas G. Leney, Esq., at Archer & Greiner, P.C.
PORTERFIELD-SCHEID MANAGEMENT: Judge OKs $2.6MM Debt Refinancing
----------------------------------------------------------------
Lisa Scheid of Lancaster Online reports that a bankruptcy judge has
granted a Lebanon County-based funeral home holding company
permission to keep its Lancaster County properties while selling
its Lebanon County funeral home to pay off $2.6 million in debts.
According to the report, U.S. Middle District Bankruptcy Chief
Judge Henry W. Van Eck approved the refinancing of the Lancaster
County properties -- The Gundel Chapel, located at 3225 Main St. in
Conestoga Township, and Melanie B. Scheid Funeral Directors &
Cremation Services, located at 317 E. Orange St. in Lancaster city
-- through Loan Ranger LP.
These properties are part of a Chapter 11 bankruptcy reorganization
filed by Porterfield-Scheid Management Co. LLC, which aims to pay
off $2.6 million in loans related to its facilities. The company
owns real estate for Porterfield-Scheid Funeral Directors &
Cremation Service Ltd.
The judge also approved the sale of the Lebanon County funeral home
at 890 Isabel Drive in North Cornwall Township to the Kevin M. Bean
Living Trust, a Berks County funeral home business, for $1.675
million. This sale will settle the debt owed to Integrity First
Capital LLC, the report states.
According to Lancaster Online, refinancing the Lancaster County
funeral home properties is expected to pay off $977,066 owed to RFM
JLM LLC, covering the Lancaster properties as well as two other
properties owned by Melanie Scheid in Lebanon city and Conestoga
Township. If the payoff is not made by January 15, 2025, daily
interest of $177 will accrue until a January 31 deadline. If the
payoff isn't completed by that date, the company must return to
court with a new plan or face liquidation. The refinancing will
leave the Small Business Administration as the first lien holder
for the East Orange Street property, with Loan Ranger LP holding a
second lien.
The holding company is co-owned by Scheid and James Porterfield,
who also operate the funeral homes. Scheid previously stated that
the Chapter 11 filing in May was necessary to reorganize debts
after Porterfield fell ill. He underwent open-heart surgery in
March and has not been able to return fully to the business,
according to report.
Scheid also noted that $1 million was invested in restoring the
9,000-square-foot historic property on East Orange Street and
expressed her intention to continue operating the business, the
report relays.
About Porterfield-Scheid Management Company
Porterfield-Scheid Management Company, LLC offers funeral services,
burials, cremation services, memorial services and other related
services to its clients.
Porterfield-Scheid Management Company filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Pa.
mCase No. 24-01127) on May 3, 2024, listing $4,050,000 in assets
and $2,602,589 in liabilities. The petition was signed by Melanie
B. Scheid as member.
Judge Henry W. Van Eck presides over the case.
Lawrence V. Young, Esq., at Cga Law Firm represents the Debtor as
counsel.
POST HOLDINGS: Egan-Jones Retains B Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on December 6, 2024, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Post Holdings, Inc. EJR also withdrew its rating on
commercial paper issued by the Company.
Headquartered in St Louis, Missouri, Post Holdings, Inc. operates
as a holding company.
PRESPERSE CORP: Seeks to Extend Plan Exclusivity to July 7
----------------------------------------------------------
Presperse Corporation asked the U.S. Bankruptcy Court for the
District of New Jersey to extend its exclusivity periods to file a
plan of reorganization and obtain acceptance thereof to July 7 and
September 4, 2025, respectively.
The Debtor explains that it was engulfed in hundreds of lawsuits
related to allegations asserted by talc personal injury claimants
as of the Petition Date. These Talc Personal Injury Claims were
filed brought in various forums across the United States. In an
effort to satisfy these standards, the Debtor must reach agreement
with its core creditor constituencies, including counsel for the
majority of the Talc Personal Injury Claimants, the TCC, and the
FCR.
Post-petition, the Debtor has been working with the TCC and FCR to
make (and reach agreement regarding) certain Plan modifications to
address previously unknown insurance issues. Accordingly, the
Debtor submits that the size and complexity of this chapter 11
case, as well as the time required to prepare adequate information
to negotiate further changes to the Plan that the Debtor envisions
will be supported by the relevant plan proponents (i.e., the TCC
and FCR), weighs in favor of extending the Exclusivity Periods.
The Debtor claims that its good faith and substantial efforts in
progressing this chapter 11 case and its demonstration not just of
the reasonable prospects of potentially filing a viable plan but
actually having filed the Plan, which Plan remains subject to
further discussion and negotiation among the Plan proponents and
other case parties, weigh in favor of extending the Exclusivity
Periods.
The Debtor notes that due to the complexity of the Debtor's chapter
11 case and the open insurance and related issues that the Debtor
is working to consensually resolve, neither the Debtor's creditors
nor any other party in interest would be in a position to propose
and solicit acceptances of a chapter 11 plan prior to the extended
Exclusivity Periods.
Consequently, the relief requested in this Motion will not result
in a delay of the Plan process, but rather, will permit the
process, which is already underway with the filing of the Plan and
Disclosure Statement and Solicitation Procedures Motion, to proceed
in an orderly manner.
The Debtor asserts that in addition to the Debtor showing the
reasonable prospect of obtaining confirmation of its Plan, the
ongoing efforts to exchange information and documents with the TCC,
FCR and other interested parties demonstrate a commitment to
engaging with stakeholders and working towards an agreeable
resolution of the Plan.
Presperse Corporation is represented by:
Morris S. Bauer, Esq.
DUANE MORRIS LLP
200 Campus Drive, Suite 300
Florham Park, NJ 07932-1007
Tel: 973-424-2000
Fax: 973-424-2001
E-mail: msbauer@duanemorris.com
About Presperse Corporation
Presperse Corporation provides premium specialty ingredients to
formulators of skincare, sun care, hair care, color cosmetics, and
diverse areas of beauty and wellness.
Presperse Corporation sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. D.N.J. Case No. 24-18921) on Sept. 9, 2024.
In the petition filed by CFO Mehul Shah, Presperse disclosed $10
million to $50 million in assets and $50 million to $100 million in
debt.
The Hon. Michael B Kaplan presides over the case.
Duane Morris LLP is the Debtors' general bankruptcy counsel.
Getzler Henrich is the Debtors' financial advisor. Kroll
Restructuring Administration LLC is the Debtors' claims and
noticing agent.
The Talc Claimants' Committee retained Robinson & Cole as legal
counsel and GlassRatner (doing business as B. Riley) as financial
advisor, and Legal Analysis Systems to provide advice.
Value Extraction Services is the prepetition future claimants'
representative, and hired Young Conaway as counsel, Ankura
Consulting Group as consultant, and jointly retained, together with
the Talc Claimants' Committee, B. Riley as financial advisor.
Presperse's parent, Sumitomo Corporation of Americas, is providing
post-petition financing and is represented by lawyers at Lowenstein
Sandler.
PROOFPOINT INC: Moody's Affirms B2 CFR & Alters Outlook to Negative
-------------------------------------------------------------------
Moody's Ratings affirmed Proofpoint Inc.'s ratings, including its
B2 corporate family rating and B2-PD probability of default rating
and revised the outlook to negative from stable on the announcement
of a large debt funded dividend recapitalization. The B2 ratings on
the company's senior secured bank credit facility were affirmed.
The change in outlook reflects the significant increase in debt and
interest as a result of the debt funded dividend and delays in
reaching positive free cash flow. Although Moody's adjusted
leverage increases to over 8x as a result of the transaction,
growth is expected to remain robust and Moody's expect the company
can de-lever to levels more appropriate for a B2 rating over the
next two years.
RATINGS RATIONALE
Proofpoint's credit profile reflects high leverage offset by a
strong growth profile and leading market position in the email
security software industry. Moody's adjusted debt to EBITDA (before
certain employee cash restricted stock unit payments (RSU), and
non-cash stock related compensation) is over 8x pro forma for the
dividend transaction based on September 2024 results. Moody's
expect leverage will trend towards 6.5x over the next two years
based on strong revenue growth and modest margin improvements
unless the company pursues additional debt funded acquisitions or
dividends. While employee deferred RSU stock cash payments are
material, the private equity owners effectively pre-funded the
payments at closing of the buyout in 2021.
Proofpoint is one of the leading providers of email security and
related software solutions. The company has grown revenue at double
digit rates annually over the past five years driven by the
strength of its product offerings. Although there is moderate risk
associated with ongoing cost savings plans, Proofpoint should grow
at 10% or greater rates over the next several years driven by
constantly evolving security threats and the efficacy of the
company's products. Moody's expect that growth will be fueled by
new email security customers and the selling of additional related
products to existing customers. The expansion of solutions includes
areas such as targeted attack protection, security awareness
training, archiving, analytics and data loss prevention. Proofpoint
has good market positions in these categories although most sales
will only be to existing email security customers. Moody's also
anticipate that Proofpoint will continue to make acquisitions to
supplement the company's technology portfolio.
Proofpoint's liquidity is good supported by approximately $275
million of cash at closing and $300 million in undrawn revolvers.
Moody's expect free cash flow before RSU payments to be positive
over the next year but overall free cash flow after RSU payments
may remain negative. The company's cash balances are substantially
greater than the remaining RSU obligations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if performance significantly
weakens; the company's market position deteriorates; Moody's
adjusted debt to EBITDA (excluding cash and non-cash stock comp) is
sustained above 7.5x; Moody's adjusted free cash flow (before RSU
payments) to debt is sustained below 4% or the company does not
maintain cash balances sufficient to cover remaining RSU cash
payments. The ratings could be upgraded if revenue and EBITDA
growth continue at solid levels; Moody's adjusted debt to EBITDA
(excluding cash and non-cash stock comp) is sustained below 5.5x;
Moody's adjusted free cash flow (before RSU payments) to debt is
sustained above 10%; the company maintains cash balances sufficient
to cover remaining RSU payments.
Proofpoint is a leading provider of email and related security
software. The company was acquired by private equity firm Thoma
Bravo in July 2021. Proofpoint had revenues of $1.9 billion in
twelve months ended September 2024.
The principal methodology used in these ratings was Software
published in June 2022.
PROSPECT MEDICAL: Considers Restructuring to Address Financial Woes
-------------------------------------------------------------------
Jonny Williams of The Providence Journal reports that Prospect
Medical Holdings, which owns Roger Williams Medical Center, Our
Lady of Fatima Hospital, and several other healthcare facilities in
the state, is reportedly considering restructuring its operations
to address ongoing financial challenges, according to The Wall
Street Journal.
This potential bankruptcy has raised concerns about the future of
the two troubled hospitals, which Prospect acquired in 2014 and
converted into for-profit entities, the report relates. The
company also owns hospitals in California, Connecticut, and
Pennsylvania.
According to The Providence Journal, Prospect's financial situation
has significantly worsened over the years. It went from having
assets exceeding liabilities by $67 million in 2017 to liabilities
exceeding assets by over $1 billion in 2020. Despite the mounting
losses, the company continued taking out loans and paying millions
in dividends to its stakeholders.
Since 2021, Prospect has attempted to sell its Rhode Island
hospitals, but the sale process was halted by Rhode Island Attorney
General Peter Neronha under the Hospitals Conversions Act, which
regulates such transactions. Neronha later approved the sale but
required Prospect to place $80 million in escrow to cover
operational and capital expenses, the report states.
In 2023, The Centurion Foundation, an Atlanta-based nonprofit, was
the only bidder for CharterCARE, the company operating Roger
Williams Medical Center and Our Lady of Fatima Hospital. The bid
was approved by Neronha and the Department of Health last June,
albeit with strict conditions, according to report.
Attorney General Addresses Bankruptcy Concerns
In response to concerns about the potential impact of Prospect's
bankruptcy on the hospitals, Neronha reassured the public.
"We've been preparing for this scenario over the past year. While
we expect more information in the coming days, we are confident
that Roger Williams and Fatima have the best chance for continued
operation due to the work we've done to transition these hospitals
out of Prospect ownership," Neronha said in a statement.
He further noted that his office has hired a bankruptcy attorney
and retained a law firm led by the same lawyer who represented
Massachusetts during Steward Health Care's bankruptcy proceedings.
"I understand the concerns of Rhode Islanders regarding healthcare,
and I share those concerns. But rest assured, we are prepared and
committed to ensuring these hospitals remain open and continue to
serve our community," Neronha added.
Centurion confirmed it is aware of the potential bankruptcy but
remains fully committed to acquiring Roger Williams Medical Center,
Our Lady of Fatima Hospital, and other medical facilities operated
by CharterCARE.
"The Centurion Foundation is committed to acquiring CharterCARE
Health Partners from Prospect Medical Holdings, as per the terms
and conditions approved by state regulatory agencies. We are
working closely with all involved parties to close the sale in the
near future," a spokesperson for Centurion said.
About Prospect Medical Holdings
Prospect Medical Holdings owns Roger Williams Medical Center, Our
Lady of Fatima Hospital, and several other healthcare facilities
PURDUE PHARMA: Ex-McKinsey Senior Partner Admits Obstructing Probe
------------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that on
January 10, 2025, a former senior partner at consulting giant
McKinsey & Co. pleaded guilty to obstructing the U.S. Department of
Justice's investigation into the firm's involvement with opioid
manufacturer Purdue Pharma LP.
This follows McKinsey's $650 million settlement to resolve related
charges a month earlier, according to the report.
About Purdue Pharma LP
Purdue Pharma L.P. and its subsidiaries --
http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the reimagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
19-23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP, as
legal counsels; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk, LLC, is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
* * *
U.S. Bankruptcy Judge Robert Drain in early September 2021 approved
a plan to turn Purdue into a new company (Knoa Pharma LLC) no
longer owned by members of the Sackler family, with its profits
going to fight the opioid epidemic. The Sackler family agreed to
pay $4.3 billion over nine years to the states and private
plaintiffs and in exchange for a lifetime legal immunity. The deal
resolves some 3,000 lawsuits filed by state and local governments,
Native American tribes, unions, hospitals and others who claimed
the company's marketing of prescription opioids helped spark and
continue an overdose epidemic.
Separate appeals to approval of the Plan have already been filed by
the U.S. Bankruptcy Trustee, California, Connecticut, the District
of Columbia, Maryland, Rhode Island and Washington state, plus some
Canadian local governments and other Canadian entities.
In early March 2022, Purdue Pharma reached a nationwide settlement
over its role in the opioid crisis, with the Sackler family members
boosting their cash contribution to as much as $6 billion. The
settlement was hammered out with attorneys general from the eight
states -- California, Connecticut, Delaware, Maryland, Oregon,
Rhode Island, Vermont and Washington -- and D.C. who had opposed
the previous settlement.
RAPID DRY: Seeks Chapter 11 Bankruptcy Protection in New York
-------------------------------------------------------------
On January 6, 2025, Rapid Dry Inc. 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 $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Rapid Dry Inc.
Rapid Dry Inc., doing business as IRock Plumbing, offers 24/7 water
damage restoration, cleanup, and dehumidification services.
Rapid Dry Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D.N.Y. Case No. 25-10009) on January 6,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $1 million and $10
million.
Arthur G. Baumeister, Jr., Esq. of Baumeister Denz LLP represents
the Debtor as counsel.
RED RIVER: Opposes Cancer Claimants' Bid to Retain Brown Rudnick
----------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that Johnson & Johnson's talc
liability unit has called for Brown Rudnick LLP to be disqualified
from representing an official committee of cancer claimants in its
bankruptcy case, citing the firm's history of taking "extreme
positions" challenging the case's legitimacy.
In a January 8, 2025 filing, Red River Talc LLC urged the US
Bankruptcy Court for the Southern District of Texas to reject the
claimants' committee's request to hire Brown Rudnick, the report
relates. The filing argued that the firm's participation "could
undermine the committee's efforts" to support a Chapter 11 plan
designed to resolve tens of thousands of mass tort claims,
according to report.
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.
RED RIVER: Talc Claimants Want Morelli Sanctioned for No-Show
-------------------------------------------------------------
Yun Park of Law360 reports that attorneys representing talc
claimants in the Chapter 11 case of Johnson & Johnson's Red River
Talc have urged a Texas bankruptcy judge to sanction Benedict
Morelli, the founding partner of Morelli Law Firm PLLC.
They allege that Morelli failed to attend a December hearing in
person and falsely asserted that a dispute with the talc claimants
had been resolved, the report states.
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.
REGENERON PHARMACEUTICALS: Faces Securities Class Action Lawsuit
----------------------------------------------------------------
Glancy Prongay & Murray LLP ("GPM") announces that it has filed a
class action lawsuit in the United States District Court for the
Southern District of New York, captioned Radtke v. Regeneron
Pharmaceuticals, Inc., et al., Case No. 25-cv-145, on behalf of
persons and entities that purchased or otherwise acquired Regeneron
Pharmaceuticals, Inc. ("Regeneron" or the "Company") (NASDAQ: REGN)
securities between November 2, 2023 and October 30, 2024, inclusive
(the "Class Period"). Plaintiff pursues claims under Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934 (the "Exchange
Act").
Investors are hereby notified that they have 60 days from the date
of this notice to move the Court to serve as lead plaintiff in this
action.
IF YOU SUFFERED A LOSS ON YOUR REGENERON INVESTMENTS, CLICK HERE TO
INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS
UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On April 10, 2024, the U.S. Department of Justice ("DOJ") announced
it had filed a complaint against Regeneron under the False Claims
Act. According to the DOJ, the Company failed to report millions of
dollars in discounts provided to drug distributors in the form of
reimbursed credit card fees. As a result, the DOJ alleges that the
ASP of Regeneron's Eylea drug was inflated, which inappropriately
increased Medicare reimbursements. By reimbursing credit card fees,
Regeneron subsidized the treatment costs, thereby gaining a
competitive advantage over other anti-VEGF treatments.
On this news, the price of Regeneron shares declined by $31.50 or
3.36%, over two consecutive trading days to close at $904.70 on
April 12, 2024, on unusually heavy trading volume.
Then, on October 31, 2024, before the market opened, Regeneron
released its third quarter 2024 financial results, revealing
lagging U.S. net sales for Eylea HD and Eylea. The Company reported
sales had only increased 3% versus the third quarter 2023, and
quarterly sales of Eylea HD were only $392 million, missing
consensus estimates of $415 million to $425 million. The Company
also revealed that "[n]et product sales of EYLEA in the third
quarter of 2024 were adversely impacted by a lower net selling
price compared to the third quarter of 2023." In the wake of this
news, Reuters reported the Company had "reported
weaker-than-expected quarterly sales of the higher dose version of
its blockbuster eye disease drug Eylea."
On this news, Regeneron's stock price fell $84.59, or 9.2%, to
close at $838.20 per share on October 31, 2024, on unusually heavy
trading volume.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout
the Class Period, Defendants made materially false and/or
misleading statements, as well as failed to disclose material
adverse facts about the Company's business, operations, and
prospects. Specifically, Defendants failed to disclose to
investors: (1) that Regeneron paid credit card fees to distributors
on the condition that distributors did not charge Eylea customers
more to use a credit card; (2) that these payments subsidized the
prices that customers paid when using credit cards to purchase
Eylea; (3) that, as a result, Regeneron offered a price concession
that lowered Eylea's selling price; (4) that, because retina
practices were sensitive to higher prices when using credit cards
to purchase anti-VEGF medications, Regeneron's price concessions
provided a competitive advantage; (5) that, as a result of the
foregoing, Regeneron misleadingly boosted reported Eylea sales; (6)
that, by failing to report its payment of credit card fees as price
concessions, Regeneron overstated the ASP reported to federal
agencies, thereby violating the False Claims Act; and (7) that, as
a result of the foregoing, Defendants' positive statements about
the Company's business, operations, and prospects were materially
misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Regeneron securities during
the Class Period, you may move the Court no later than 60 days from
the date of this notice to ask the Court to appoint you as lead
plaintiff.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any
questions concerning this announcement or your rights or interests
with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: shareholders@glancylaw.com
Telephone: (310) 201-9150
Toll-Free: (888) 773-9224
Visit our website at www.glancylaw.com.
If you inquire by email, please include your mailing address,
telephone number and number of shares purchased.
To be a member of the Class you need not take any action at this
time; you may retain counsel of your choice or take no action and
remain an absent member of the Class.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules. [GN]
REGIONAL WEST HEALTH: Fitch Alters Outlook on 'BB-' IDR to Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed the Issuer Default Rating (IDR) for
Regional West Health Services (RWHS) at 'BB-'. Fitch has also
affirmed the series 2016A bonds issued through Hospital Authority
No. 1 of Scotts Bluff County, NE on behalf of RWHS at 'BB-'.
The Rating Outlook has been revised to Stable from Negative.
Entity/Debt Rating Prior
----------- ------ -----
Regional West
Health Services
and Affiliates (NE) LT IDR BB- Affirmed BB-
Regional West
Health Services
and Affiliates (NE)
/General Revenues/1 LT LT BB- Affirmed BB-
The Outlook revision to Stable reflects RWHS's significant
operational performance improvements in 2024. The system increased
revenue from the prior year by refining billing practices and
renegotiating payor contracts. Additionally, RWHS focused on cost
management by reducing agency staff and group purchasing.
Fitch believes these initiatives have strengthened RWHS's core
operating performance and expects positive operating income in
fiscal 2025 and beyond. Nebraska's Medicaid Directed Payments
Program in 2025 could provide additional aid beyond Fitch's current
expectations. If the Centers for Medicare & Medicaid Services (CMS)
approve the program, RWHS would gain significant cash flow,
potentially enhancing its balance sheet over time and resulting in
positive rating pressure.
SECURITY
The bonds are secured by a pledge of gross revenues and a mortgage
lien from the obligated group (OG). The recent forbearance
agreement continued through June 2024; it pledges substantially all
of RWHS' assets to the master trustee and consents the transfer of
funds remaining in the project fund to a separate reserve fund,
which will be held by the trustee in trust for the bondholders and
as further security for the repayment of the obligations due under
the bond documents.
KEY RATING DRIVERS
Revenue Defensibility - 'bbb'
Dominant Market Position; Weak Service Area
RWHS maintains a midrange payor mix, with combined Medicaid and
self-pay revenues accounting for less than 25% of gross revenues.
The organization's revenue generation may be enhanced in 2025 if
CMS approves the Nebraska Medicaid Directed Payment Program, which
provides significant Medicaid funding for qualified applicants.
RWHS's service area has weak demographic characteristics, with a
declining population and median household income and poverty levels
that are unfavorable compared to state and national averages.
However, it is the largest provider within 150 miles, with no other
hospital having more than 25 licensed beds in its primary,
secondary, or tertiary service areas. Fitch believes RWHS's
strategic location, comprehensive services, and position as a
regional referral center in western Nebraska solidify its
'Midrange' revenue defensibility. Additionally, the health system's
recent expansion efforts, including the addition of over 20 new
providers in 2024, aim to bolster patient volumes, particularly in
oncology and cardiac services.
Operating Risk - 'bbb'
Major Operating Improvement Led to Positive Operating Income
Generation in 2025
RWHS has improved profitability, with the operating EBITDA margin
increasing significantly from -12.7% in fiscal 2022 to 1.6% through
the first nine months of fiscal 2024 (as of Sept. 30, 2024).
The improvement results from initiatives targeting revenue cycle
and labor costs, along with savings from the partnership with
Health Trust. Management remains focused on reducing overtime and
reliance on travel nurses, further enhancing profitability. Fitch
views the 2024 cash flow generation positively, considering RWHS's
intentional reduction of volumes and overtime usage to allow staff
to learn the new Epic electronic medical records (EMR) system.
RWHS officially went live with Epic in October 2024. While the
conversion will temporarily affect revenue cycle performance, the
operating cost of the new system is lower than the previous EMR and
management believes the conversion will provide additional revenue
capture and coding opportunities.
RWHS's capital expenditures have generally been low, averaging 58%
of depreciation over the past five fiscal years. Spending recently
increased, with investments in medical equipment and facilities,
including a new orthopedic surgery robot and interventional
radiology suite to support RWHS's strategic growth objectives.
Fitch expects capital spending to remain below depreciation,
enabling RWHS to rebuild its balance sheet while investing in
services to generate additional revenue, such as a renovation of
the PET/CT exam area and the purchase of a new radiation therapy
machine. RWHS had an elevated average age of plant at 19 years at
FYE 2023.
Financial Profile - 'bb'
Gradual Liquidity Improvement Expected
RWHS ended fiscal 2023 with cash-to-adjusted debt of approximately
44%. It also had approximately 34 days cash on hand (DCOH),
compared to approximately 73 DCOH at FYE 2021. RWHS received $47.5
million in proceeds from the sale of its interest in the Medical
Center of the Rockies (MCR) in September. Funds from the sale were
used to pay existing obligations, fund future equipment purchases,
and improve liquidity position. As of Sept. 30, 2023, RWHS had
approximately 49% cash-to-adjusted debt and 36 DCOH (consolidated),
which is an asymmetric risk consideration for the financial profile
because it falls below Fitch's 75 DCOH threshold. RWHS does not
have a DCOH covenant.
The base case of Fitch's forward look reflects the expectation RWHS
will generate operating profitability starting in fiscal 2025. This
could result in improving balance sheet resources relative to
adjusted debt, especially with capital spending expected to remain
below depreciation. The base case incorporates an operating EBITDA
margin average of 7% from 2025-2028, resulting in incremental
year-over-year improvements in DCOH and significant improvement in
cash to adjusted debt. RWHS could potentially generate operating
cash flow well above this level if CMS approves the new state
Medicaid Directed Payment Program.
In Fitch's stress case, RWHS' cash to adjusted debt shows an
improvement to above 100% by FYE 2027. Despite this improvement,
the financial profile and ultimate rating remain constrained by the
organization's weak liquidity as DCOH remains below 75 for nearly
all of the base case and throughout the stress case.
Asymmetric Additional Risk Considerations
No asymmetric additional risk considerations were applied in this
rating determination.
In November 2022, John Mentgen resigned as president and CEO of
RWHS. In December 2022, RWHS hired Melvin McNea as RWHS's Interim
CEO. Prior to his role as Interim CEO, Melvin McNea was the CEO of
Great Plains Health until his retirement in 2021. A search for a
permanent CEO for RWHS is underway.
In June 2023, Michael Ickowski resigned as Vice President and CFO
of RWHS. Following his departure, Alan Townsend was hired as RWHS's
interim CFO. In March 2024, Jeanne McKerrigan, who served as
director of development for Regional West Foundation since 2021 and
was the controller for RWHS, was appointed as the new CFO of RWHS.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Balance sheet dilution, such that cash-to-adjusted debt drops
below current levels;
- An unexpected debt issuance or significant ramp up of capital
spending, without commensurate liquidity build up, that weakens
leverage metrics below current levels;
- Failure to improve and sustain positive operating EBITDA and
EBITDA margins in the next couple of years.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- RWHS would need to significantly improve its unrestricted cash
reserves to levels that result in sustained cash to adjusted debt
above 100% and/or improve its operating EBITDA levels consistently
above 6% to be considered for a higher rating level.
PROFILE
RWHS is a non-profit corporation organized as a parent company for
affiliated non-profit health care organizations. The OG consists
solely of Regional West Medical Center (RWMC), an acute care
general hospital in Scottsbluff, NE. RWMC is licensed to operate
188 acute care beds and is a regional referral center.
RWHS's other affiliated entities that are not part of the OG
include: Regional West Physicians Clinic, Regional West Foundation,
Regional West Village, Regional West Garden County and Regional
Care. Fitch's analysis is based on the consolidated entity.
Sources of Information
In addition to the sources of information identified in Fitch's
applicable criteria specified below, this action was informed by
data from Lumesis.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
REITER BROTHERS: Seeks Bankruptcy Protection in Florida
-------------------------------------------------------
On January 9, 2025, Reiter Brothers Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Southern District
of Florida.
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 Reiter Brothers Inc.
Reiter Brothers Inc. is operating as Vannucchi Brothers, is a
Hollywood, Florida-based furniture manufacturer.
Reiter Brothers Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10190) on January 9,
2025. In its petition, the Debtor reports estimated assets between
$50,000 and $100,000 and estimated liabilities between $500,000 and
$1 million.
RELMADA THERAPEUTICS: Appoints COO, Amends NEO Employment Contracts
-------------------------------------------------------------------
Effective Jan. 1, 2025, Paul Kelly was elected by the Board of
Directors to the position of chief operating officer of Relmada
Therapeutics, Inc., as reported in a Form 8-K submitted to the
Securities and Exchange Commission. Mr. Kelly currently serves as
a director of the Company. Prior to being appointed as Chief
Operating Officer, he held the position of Special Advisor to the
Chief Executive Officer.
Mr. Kelly and the Company entered into an employment agreement,
effective Jan. 1, 2025. Under the Agreement, Mr. Kelly and the
Company agreed to the following terms:
* Salary is $476,000 per year, and he may be entitled to a cash
bonus in an amount to be determined by the Board with a target of
40% of the base salary.
* Mr. Kelly's employment with the Company will be on an "at
will" basis meaning that either Mr. Kelly or the Company may
terminate his employment at any time for any reason or no reason,
upon written notification to the other party, without further
obligation or liability, except as provided in the agreement.
* In the event of termination other than for cause or resignation
for good reason, Mr. Kelly will be entitled to severance equal to
six months of compensation payable in a lump sum and continuation
of health benefits for six months. In the event of Mr. Kelly's
termination of employment under conditions where severance is
payable, all of his outstanding equity awards, if any, will become
fully vested and the performance goals with respect to outstanding
performance awards, if any, will be deemed satisfied at "target",
and all outstanding options will remain exercisable for the
remainder of the respective term of such option. If Mr. Kelly's
employment terminates due to death, his estate also shall be
entitled to receive a single lump sum payment equal to three months
base salary, payable within 30 days of his death.
* During the term of the agreement, Mr. Kelly may also be awarded
equity grants subject to Board approval and the establishment of an
equity plan approved by shareholders. Mr. Kelly's options granted
to him as a Director of the Company shall continue to vest in
accordance with their terms, so long as he remains employed by the
Company.
* Mr. Kelly is also eligible to participate in the Company's
benefit plans that are generally provided for executive employees.
* The Employment Agreement also contains a non-solicitation
provision that, among other things, provides that during the term
of employment and for a period of 24 months following the cessation
of employment with the Company, Mr. Kelly shall not directly or
indirectly solicit, induce, recruit or encourage any of the
Company's employees or consultants to terminate their relationship
with the Company, or attempt any of the foregoing, either for
himself or any other person or entity.
Amended and Restated NEO Employment Agreements
On Jan. 1, 2025, the Company entered into amended and restated
employment agreements with each of Sergio Traversa, the Company's
chief executive officer, Maged Shenouda, the Company's chief
financial officer and Charles Ence, the Company's chief accounting
and compliance officer (the "Named Executive Officers" or "NEOs"),
in each case effective as of Jan. 1, 2025. The Amended Employment
Agreements, which are nearly identical in their terms to each NEO's
original employment agreement, reflect the following material
change consistent with the terms of the Kelly Employment
Agreement:
- In the event of an involuntary termination without "cause" (as
defined in the Amended Employment Agreements) or a resignation for
"good reason" (as defined in the Amended Employment Agreements),
all stock options granted to such NEO under the Company's equity
compensation plans shall, in addition to becoming vested in
accordance with the previous terms of the Amended Employment
Agreements, remain exercisable through the term of the respective
option.
The Amended Employment Agreements also contain certain immaterial
changes intended to conform language to the foregoing changes,
document the NEO's current base salaries, and provide additional
non-substantive clarification.
Named Executive Officer Compensation
The Board, upon recommendation of the Compensation Committee of the
Board, also determined that, based on the Company's performance for
fiscal 2024 and in order to reduce expenses, none of the NEOs will
receive (i) any salary increases for fiscal 2025, (ii) cash bonuses
for fiscal 2024, or (iii) fiscal 2024 long-term incentive awards.
Suspension of Retention Payments
In addition, in an effort to control expenses, the Board, the NEOs
and Mr. Kelly have each agreed that all further payments of
retention payments to the NEOs and Mr. Kelly are suspended until
such time that the Board determines that management has
successfully undertaken the implementation of such strategic
initiatives as may be approved by the Board from time to time. In
August 2024, the Board approved retention payments for the NEOs and
Mr. Kelly pursuant to Retention Compensation Agreements entered
into between the Company and each of the NEOs and Mr. Kelly,
respectively, in the aggregate amount of $4,200,000 for Mr.
Traversa, $2,000,000 for each of Messrs. Shenouda and Ence and
$1,500,000 for Mr. Kelly. The retention payments were designed to
help offset the absence of equity-based compensation in order to
ensure that the NEOs and Mr. Kelly remained incentivized and
aligned with the Company's long-term goals. Accordingly, the
retention payments were structured to be paid in accordance with
the Company's standard vesting schedule of long-term equity
incentive awards, that is, quarterly over a four-year period
subject to the individual’s continued employment or service with
the Company, with the exception of the initial payments which were
made in a lump sum in September 2024 in the amount of $1,050,00 for
Mr. Traversa, $500,000 for each of Messrs. Shenouda and Ence and
$375,000 for Mr. Kelly.
About Relmada Therapeutics
Relmada Therapeutics Inc. is a clinical-stage biotechnology company
focused on the development of esmethadone (d-methadone,
dextromethadone, REL-1017), an N-methyl-D-aspartate (NMDA) receptor
antagonist. Esmethadone is a new chemical entity (NCE) that
potentially addresses areas of high unmet medical need in the
treatment of central nervous system (CNS) diseases and other
disorders.
"As shown in the accompanying unaudited condensed consolidated
financial statements, the Company has incurred losses and negative
cash flows from operations since inception and expects to incur
additional losses until such time that it can generate significant
revenue from the commercialization of its product candidates.
During the nine months ended September 30, 2024, the Company
incurred a net loss of $61,322,218 and had negative operating cash
flows of $42,956,164. Given the Company's projected operating
requirements and its existing cash and cash equivalents and
short-term investments, the Company is projecting insufficient
liquidity to sustain its operations through one year following the
date that the financial statements are issued. These conditions
and events raise substantial doubt about the Company's ability to
continue as a going concern," the Company stated in its Quarterly
Report for the period ended Sept. 30, 2024.
RENOVARO INC: Board Appoints Maurice van Tilburg as GEDi Cube CEO
-----------------------------------------------------------------
The Board of Directors of Renovaro, Inc., has appointed Maurice van
Tilburg, age 53, as the chief executive officer of GEDi Cube B.V.,
a wholly owned subsidiary of Renovaro Cube Intl. Ltd., which is
itself a wholly owned subsidiary of Renovaro, Inc., effective Dec.
30, 2024, as reported in a Form 8-K submitted to the Securities and
Exchange Commission.
Maurice van Tilburg is a current member of the Board and has held
several senior positions in the Financial Services industry and
Tech enterprises combining general management, technology,
operational service delivery, financial management, audit and
product development. He is also an awarded artist that combines
leadership roles in the industry with a successful series of art
concepts. Mr. van Tilburg currently serves as the Director of the
Dutch National Growth fund where he oversees the largest government
investments in the area of innovation and technology. With this he
builds on his role at Techleap.nl where he developed new and
additional sources of funding for Dutch Tech scale ups in order to
contribute to global challenges, economic growth, technology
capabilities and employment in The Netherlands. Mr. van Tilburg
brings with him his experience as CEO of Euronext Amsterdam where
he was responsible for clients, product development, organization
and P&L for the Dutch market as well as the operational running of
all European stock markets of Euronext. Mr. van Tilburg's ambition
is to lead teams with a clear mission and positive impact, bringing
his leadership skills and experience in areas of finance, tech and
art. In that context Mr. van Tilburg has held also
nonexecutive/advisory board member at several startup companies.
In connection with his appointment, GEDi Cube entered into an
employment agreement which provides that Mr. van Tilburg's base
salary will be $300,000 per year, and he will be eligible to
receive a performance bonus of up to $100,000 per year, which will
be payable on or before March 15th of each calendar year. The CEO
Employment Agreement also provides that the Compensation Committee
of the Board will consider giving Mr. van Tilburg a sign-on bonus
of 250,000 shares of restricted common stock of the Company and an
equity incentive grant of 1,000,000 stock options, which will vest
200,000 options per year for five years beginning on the first
anniversary of the date of the CEO Employment Agreement.
Mr. van Tilburg is eligible to participate in the benefit plans and
programs generally available to the GEDi Cube's employees. Mr. van
Tilburg will also be entitled to reimbursement of all reasonable
and necessary business expenses incurred or paid by him in the
performance of his duties and responsibilities for GEDi Cube upon
submission to GEDi Cube of written evidence of such expenses as
GEDi Cube may require in accordance with its business expense
reimbursement policy. If Mr. van Tilburg is terminated without
cause or if Mr. van Tilburg terminates his employment for good
reason, GEDi Cube agrees to provide to Mr. van Tilburg as
severance: (i) an amount equal to six months of his base salary,
(ii) reimbursement of premiums to continue health care benefits
coverage under COBRA for the six months following the date of Mr.
van Tilburg's termination and (iii) accelerated vesting of all
time-based equity awards. "Good Reason" in the CEO Employment
Agreement includes the sale of substantially all of the assets of
GEDi Cube or a merger in which the shareholders of GEDi Cube do not
retain control.
Mr. van Tilburg does not have any familial relationships with any
other officers or directors of the Company, nor does he have any
direct or indirect material interest in any transaction that is
required to be disclosed under Item 404(a) of Regulation S-K.
About Renovaro Inc.
Headquartered in Los Angeles, CA, Renovaro Inc.
(http://www.renovarobio.com),formerly Renovaro BioSciences Inc.,
is a biotechnology company intending, if the necessary funding is
obtained, to develop advanced allogeneic cell and gene therapies to
promote stronger immune system responses potentially for long-term
or life-long cancer remission in some of the deadliest cancers, and
potentially to treat or cure serious infectious diseases such as
Human Immunodeficiency Virus (HIV) infections. As a result of the
Company's acquisition of GEDi Cube Intl on Feb. 13, 2024, the
Company has shifted the Company's primary focus and resources to
the development of the GEDi Cube Intl technologies.
Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated Oct. 10, 2024, citing that the Company has incurred
substantial recurring losses from operations, has used cash in the
Company's continuing operations, and is dependent on additional
financing to fund operations which raises substantial doubt about
its ability to continue as a going concern.
RENOVARO INC: To Acquire Predictive Oncology in All-Stock Deal
--------------------------------------------------------------
Renovaro Inc. announced it has entered into a binding LOI to
acquire Predictive Oncology in an all-stock transaction, through
the issuance of preferred stock.
Predictive Oncology leverages a proprietary AI/ML platform and a
vast biobank of tumor samples to accelerate drug discovery and
development, enabling more informed, precise cancer treatment
options with high accuracy.
David Weinstein, chief executive officer of Renovaro, commented,
"Renovaro is on a quest to offer cancer patients early diagnostic
options, treatment protocols, and recurrence monitoring.
Predictive Oncology will enhance our capabilities by assisting
oncologists with patient specific diagnostic and therapeutic
clinical support data. Predictive Oncology's proprietary AI/ML
platform has been proven to predict tumor-drug response with 92%
accuracy which, I believe, will allow us to launch as a decision
support platform for medical oncologists in 2025. As importantly,
there are strong synergies with Predictive's small molecule solid
tumor drug-tumor response modeling capabilities and Renovaro's
liquid biopsy approach to early cancer detection and monitoring."
Raymond Vennare, chief executive officer of Predictive Oncology,
added, "We recognize that by integrating Predictive Oncology's
AI-driven drug discovery platform and vast biobank of more than
150,000 patient tumor samples, 200,000 pathology slides and decades
of longitudinal drug response data with Renovaro's
multi-disciplinary artificial intelligence, multi-omics and
multi-modal data expertise, we are opening to door to diagnostic,
therapeutic and drug discovery possibilities that we otherwise
would never have considered."
Short-Term Synergies
* By leveraging Predictive Oncology's extensive biobank of
150,000 tumor samples, Renovaro gains an invaluable resource to
accelerate biomarker discovery, clinical trial optimization and
clinical decision support tools across multiple cancer types.
* The combined organization will have a state-of-the-art CLIA,
NYSDOH, and CA-certified laboratory staffed by a highly experienced
team.
* Infrastructure streamlines Renovaro's development, validation,
and rollout of new diagnostic tests in Europe, improving speed to
market and expanding global reach.
* Introduces novel in vivo chemosensitivity and resistance assay
for predicting patient response to cancer chemotherapy to the
European markets.
* Enables the company to collaborate across multi-omic platforms
for drug discovery.
Long-Term Vision
* Renovaro's partnership with Predictive Oncology creates a
powerful foundation for delivering a global point-of-care solution
for cancer.
* By integrating Predictive Oncology's AI-driven small molecule
solid tumor expertise with Renovaro's AI-powered liquid biopsy and
cancer vaccine programs, the Company envisions an opportunity to
provide patients with a comprehensive, end-to-end solution from
diagnostics and early detection to personalized therapies, in
silico modeling and biomarker discovery.
* First-in-class, full-stack clinical service has the potential
to advance cancer therapy at every stage of the patient's journey,
improving outcomes and reducing costs.
Predictive Oncology announced on Nov. 13, 2024, that the company's
Board of Directors, working with a strategic advisor, had initiated
a process to evaluate a broad range of strategic alternatives
intended to maximize shareholder value and issued an update on
Dec. 3, 2024, stating the Company was engaged in productive
discussions with multiple interested parties and looked forward to
the timely completion of this process.
About Renovaro Inc.
Headquartered in Los Angeles, CA, Renovaro Inc.
(http://www.renovarobio.com),formerly Renovaro BioSciences Inc.,
is a biotechnology company intending, if the necessary funding is
obtained, to develop advanced allogeneic cell and gene therapies to
promote stronger immune system responses potentially for long-term
or life-long cancer remission in some of the deadliest cancers, and
potentially to treat or cure serious infectious diseases such as
Human Immunodeficiency Virus (HIV) infections. As a result of the
Company's acquisition of GEDi Cube Intl on Feb. 13, 2024, the
Company has shifted the Company's primary focus and resources to
the development of the GEDi Cube Intl technologies.
Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated Oct. 10, 2024, citing that the Company has incurred
substantial recurring losses from operations, has used cash in the
Company's continuing operations, and is dependent on additional
financing to fund operations which raises substantial doubt about
its ability to continue as a going concern.
ROCKY MOUNTAIN: A. Harper Discloses Ownership of 1,911 Shares
-------------------------------------------------------------
Allen C. Harper, director of Rocky Mountain Chocolate Factory,
Inc., disclosed in a Form 3 filing with the U.S. Securities and
Exchange Commission that as of November 26, 2024, he directly owns
1,911 shares and indirectly owns 1,000,000 shares of the Company's
common stock.
About Rocky Mountain Chocolate Factory
Durango, Colo.-based Rocky Mountain Chocolate Factory, Inc. is an
international franchisor, confectionery producer, and retail
operator. Founded in 1981, the Company produces an extensive line
of premium chocolate candies and other confectionery products.
As of August 31, 2024, Rocky Mountain Chocolate Factory had $21.1
million in total assets, $10.6 million in total liabilities, and
$10.5 million in total shareholders' equity.
Going Concern
During the six months ended August 31, 2024, Rocky Mountain
Chocolate Factory used cash in operating activities of $5.7
million. Additionally, the Company was not in compliance with the
requirement under a credit agreement, as amended, with Wells Fargo
Bank N.A. to maintain a ratio of total current assets to total
current liabilities of at least 1.5 to 1. The Company's current
ratio as of August 31, 2024 was 1.24 to 1. The Credit Agreement
was
set to expire on September 30, 2024, and was repaid on September
30, 2024. These factors raise substantial doubts about the
Company's ability to continue as a going concern within the next
12
months.
SAFEMOON US: CEO Demands Explanation for 'Misleading' Reddit Post
-----------------------------------------------------------------
Sydney Price of Law360 Bankruptcy Authority reports that on January
10, 2025, the CEO of bankrupt cryptocurrency company SafeMoon LLC
asked a Brooklyn federal judge to require the government to clarify
its involvement, if any, in a social media user's "misleading" post
that claimed to link SafeMoon investors with the U.S. government.
About SafeMoon US LLC
Pleasant Grove, Utah-based SafeMoon US, LLC, is a cryptocurrency
company project.
SafeMoon US LLC sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. D. Utah Case No. 23-25749) on Dec. 14,
2023. In its petition, the Debtor listed between $10 million and
$50 million in estimated assets and a maximum of $500,000 in
estimated liabilities.
The Debtor's counsel:
Mark C. Rose
Mckay, Burton & Thurman, P.C.
Tel: (801) 521-4135
E-mail: mrose@mbt-law.com
The Chapter 7 trustee:
Ellen Ostrow
Foley & Lardner LLP
95 S. State St. Suite 2500
Salt Lake City, UT 84111
SAM'S CRAB: Seeks Chapter 11 Bankruptcy Protection in Virginia
--------------------------------------------------------------
On January 9, 2025, Sam's Crab House LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of Virginia.
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 Sam's Crab House LLC
Sam's Crab House LLC is a restaurant operator based in Richmond,
Virginia.
Sam's Crab House LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va.Case No. 25-30071) on January 9,
2025. In its petition, the Debtor reports estimated assets between
$50,000 and $100,000 and estimated liabilities between $100,000 and
$500,000.
Kimberly Ann Kalisz of Conway Law Group, PC represents the Debtor
as counsel.
SAMPLE TILE: Seeks Chapter 11 Bankruptcy Protection in California
-----------------------------------------------------------------
On January 8, 2025, Sample Tile and Stone 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 $1 million
and $10 milion in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Sample Tile and Stone Inc.
Sample Tile and Stone Inc. is based in Los Angeles, California and
operates as a tile contractor with ongoing projects including work
at WB Ranch TI and The Ranch Lot Studios.
Sample Tile and Stone Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10137) on
January 8, 2025. In its petition, the Debtor reports estimated
assets between $500,000 and $1 million and estimated liabilities
between $1 million and $10 million.
Honorable Bankruptcy Judge Barry Russell handles the case.
Michael Jay Berger of Law Offices of Michael Jay Berger represents
the Debtor as counsel.
SAVANNAH HOLDINGS: Seeks Chapter 11 Bankruptcy Protection in N.Y.
-----------------------------------------------------------------
On January 10, 2025, Savannah Holdings LLC 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 not be available to unsecured creditors.
About Savannah Holdings LLC
Savannah Holdings LLC is a single asset real estate company based
in Queens Village, New York.
Savannah Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-40131) on January 10,
2025. In its petition, the Debtor reports estimated assets between
$100,000 and $500,000.
SCIONHEALTH: KKR Income Marks $1.6MM Loan at 38% off
----------------------------------------------------
KKR Income Opportunities Fund has marked its $1,699,000 loan
extended to ScionHealth to market at $1,045 or 62% of the
outstanding amount, according to the KKR Income's Form N-CSRS for
the semi-annual period ended October 31, 2024, filed with the
Securities and Exchange Commission.
KKR Income is a participant in a First Lien Term Loan B (
SOFR+5.25% ) to ScionHealth. The loan matures on December 23,
2028.
KKR Income was organized on March 17, 2011 as a statutory trust
under the laws of the State of Delaware. The Fund is a closed-end
registered management investment company, which commenced
operations on July 25, 2013. The Fund seeks to generate a high
level of current income, with a secondary objective of capital
appreciation. The Fund is diversified for purposes of the
Investment Company Act of 1940, as amended.
KKR Income is led by Rudy Pimentel, President; and Thomas Murphy,
Treasurer, Chief Accounting Officer & Chief Financial Officer. The
Fund can be reached through:
Rudy Pimentel
KKR Income Opportunities Fund
555 California Street, 50th Floor
San Francisco, CA 94104
Telephone: (415) 315-3620
- and -
Lori Hoffman
KKR Credit Advisors (US) LLC
555 California Street, 50th Floor
San Francisco, CA 94104
Telephone: (415) 315-3620
ScionHealth is a national healthcare system of 94 hospital campuses
(76 specialty hospitals and 18 community hospital campuses and
associated health systems) and seven senior living communities
that
delivers outstanding care by supporting those who care most.
SI GROUP: KKR Income Marks $1.7MM Loan at 25% off
-------------------------------------------------
KKR Income Opportunities Fund has marked its $1,754,000 loan
extended to SI Group Inc to market at $1,320 or 75% of the
outstanding amount, according to the KKR Income's Form N-CSRS for
the semi-annual period ended October 31, 2024, filed with the
Securities and Exchange Commission.
KKR Income is a participant in a First Lien Term Loan B-1A (SOFR +
4.75%, 0.75%) to SI Group Inc. The loan matures on October 16,
2028.
KKR Income was organized on March 17, 2011 as a statutory trust
under the laws of the State of Delaware. The Fund is a closed-end
registered management investment company, which commenced
operations on July 25, 2013. The Fund seeks to generate a high
level of current income, with a secondary objective of capital
appreciation. The Fund is diversified for purposes of the
Investment Company Act of 1940, as amended.
KKR Income is led by Rudy Pimentel, President; and Thomas Murphy,
Treasurer, Chief Accounting Officer & Chief Financial Officer. The
Fund can be reached through:
Rudy Pimentel
KKR Income Opportunities Fund
555 California Street, 50th Floor
San Francisco, CA 94104
Telephone: (415) 315-3620
- and -
Lori Hoffman
KKR Credit Advisors (US) LLC
555 California Street, 50th Floor
San Francisco, CA 94104
Telephone: (415) 315-3620
SI Group's been providing high-quality products and solutions for
over 100 years. SI Group offer leading additive solutions for
plastics, rubber, fuels, lubricants, and more. SI Group broad
global footprint spans 19 manufacturing sites and joint ventures
across the globe to provide our customers with reliable and
consistent products and services.
SI GROUP: KKR Income Marks $3.9MM Loan at 25% off
-------------------------------------------------
KKR Income Opportunities Fund has marked its $3,927,000 loan
extended to SI Group Inc to market at $2, 957,000 or 75% of the
outstanding amount, according to the KKR Income's Form N-CSRS for
the semi-annual period ended October 31, 2024, filed with the
Securities and Exchange Commission.
KKR Income is a participant in a First Lien Term Loan B-1B (SOFR +
4.75%, 0.75%) to SI Group Inc. The loan matures on October 16,
2028.
KKR Income was organized on March 17, 2011 as a statutory trust
under the laws of the State of Delaware. The Fund is a closed-end
registered management investment company, which commenced
operations on July 25, 2013. The Fund seeks to generate a high
level of current income, with a secondary objective of capital
appreciation. The Fund is diversified for purposes of the
Investment Company Act of 1940, as amended.
KKR Income is led by Rudy Pimentel, President; and Thomas Murphy,
Treasurer, Chief Accounting Officer & Chief Financial Officer. The
Fund can be reached through:
Rudy Pimentel
KKR Income Opportunities Fund
555 California Street, 50th Floor
San Francisco, CA 94104
Telephone: (415) 315-3620
- and -
Lori Hoffman
KKR Credit Advisors (US) LLC
555 California Street, 50th Floor
San Francisco, CA 94104
Telephone: (415) 315-3620
SI Group's been providing high-quality products and solutions for
over 100 years. SI Group offer leading additive solutions for
plastics, rubber, fuels, lubricants, and more. SI Group broad
global footprint spans 19 manufacturing sites and joint ventures
across the globe to provide our customers with reliable and
consistent products and services.
SONOCO PRODUCTS: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on December 31, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Sonoco Products Company.
Headquartered in Hartsville, South Carolina, Sonoco Products
Company manufactures industrial and consumer packaging solutions
for customers around the world.
SOUTHERN POINT: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Southern Point Planting Company, LLC
888 Hwy 16 W
Holly Bluff, MS 39088
Chapter 11 Petition Date: January 10, 2025
Court: United States Bankruptcy Court
Southern District of Mississippi
Case No.: 25-00090
Judge: Hon. Jamie A Wilson
Debtor's Counsel: Craig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
601 Renaissance Way
Suite A
Ridgeland, MS 39157
Tel: 601-427-0048
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Smith Stoner as president.
The Debtor failed to include a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/TV3YYGA/Southern_Point_Planting_Company__mssbke-25-00090__0001.0.pdf?mcid=tGE4TAMA
STERICYCLE INC: Egan-Jones Retains B+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on December 18, 2024, withdrew its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Stericycle, Inc. EJR also withdrew its rating on
commercial paper issued by the Company.
Headquartered in Houston, Texas, Stericycle, Inc. is a
business-to-business services company.
SUN SHRIMP: Seeks Chapter 11 Bankruptcy Protection in Florida
-------------------------------------------------------------
On January 8, 2025, Sun Shrimp Gourmet Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Middle District of
Florida.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Sun Shrimp Gourmet Inc.
Sun Shrimp Gourmet Inc. is a food production company that provides
fish and prawns wholesale.
Sun Shrimp Gourmet Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No.: 25-00024) on January 8,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $10 million and $50
million.
Honorable Bankruptcy Judge Caryl E. Delano handles the case.
Scott A. Stichter, Esq. of Stichter, Riedel, Blain & Postler, P.A.,
represents the Debtor as counsel.
SURF 9: Seeks Chapter 11 Bankruptcy Protection in New York
----------------------------------------------------------
On January 8, 2025, Surf 9 LLC 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 $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Surf 9 LLC
Surf 9 LLC is a limited liability company.
Surf 9 LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D.N.Y. Case No.: 25-40078) on January 8, 2025. In
its petition, the Debtor reports estimated assets and liabilities
between $10 million and $50 million each.
Honorable Bankruptcy Judge Jil Mazer-Marino handles the case.
Kevin Nash, Esq. of Goldberg Weprin Finkel Goldstein LLP, serves as
the Debtor's counsel.
SURVWEST LLC: Seeks to Extend Plan Exclusivity to May 3
-------------------------------------------------------
SurvWest 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 May 3 and July 2,
2025, respectively.
The Debtor filed its Plan within the 120-day period and therefore
maintains the exclusive right to propose a plan and shall maintain
such right until the Plan is confirmed, provided the Plan is
confirmed within 180 days after the Petition Date or as extended.
Pursuant to Section 1121(d) of the Bankruptcy Code, the 120-day
period and 180-day period may be extended, for cause, up to,
respectively, 18 months and 20 months after the Petition Date. The
bankruptcy case has been pending for four months.
Here, several factors favor granting the requested extension.
First, good faith progress has been made towards reorganization, as
evidenced by the filing of the Plan within the initial 120-day
exclusivity window, the resolution of cash collateral disputes with
senior secured lenders the United States Small Business
Administration and TBK Bank, SSB, and the rejection of two office
leases in Texas.
Second, the filed Plan is a viable reorganization plan that
addresses pre-petition claims while also providing a path forward
for continued operations. Third, the Debtor is paying its bills as
they come due, timely filing its monthly operating reports, and
operating in compliance with its approved DIP financing agreement.
Fourth, this is the first extension request. Fifth, there are
complexities to this case, primarily involving the validity,
priority and extent of liens asserted by the aforementioned senior
lenders as well as several other creditors. Sixth, the Debtor is
not seeking an extension to pressure creditors.
SurvWest LLC, is represented by:
David V. Wadsworth, Esq.
Wadsworth Garber Warner Conrardy, PC
2580 West Main Street, Suite 200
Littleton, CL 80120
Telephone: (303) 296-1999
Facsimile: (303) 296-7600
Email: dwadsworth@wgwc-law.com
About SurvWest LLC
SurvWest LLC, formerly known as SurvTech Solutions LLC, is a
diversified engineering firm specializing in surveying and mapping;
subsurface utility engineering (SUE); and utility coordination for
clients across the United States.
SurvWest filed Chapter 11 petition (Bankr. D. Colo. Case No.
24-15214) on September 6, 2024, with total assets of $7,301,456 and
total liabilities of $9,447,402. Mathew Barr, president, signed the
petition.
Judge Thomas B. Mcnamara handles the case.
The Debtor is represented by David Wadsworth, Esq., at Wadsworth
Garber Warner Conrardy, P.C.
TAMID WATERLOO: Defaults on $40-Mil. Municipal Bonds
----------------------------------------------------
Martin Z. Braun of Bloomberg News reports that a 208-bed nursing
home in Waterloo, Iowa, has defaulted on nearly $40 million in
municipal bonds issued in 2022, according to a securities filing
dated January 10, 2025.
UMB Bank NA, the trustee for the bonds issued on behalf of Tamid
Waterloo, LLC, stated that the facility lacked sufficient funds to
fully cover the interest, principal, and premium due on January 1,
2025. The trustee used $1.4 million from the remaining bond fund to
make a partial payment.
About Tamid Waterloo LLC
Tamid Waterloo LLC is a 208-bed nursing home in Waterloo, Iowa.
TAMPA BRASS: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Tampa Brass and Aluminum Corporation
8511 Florida Mining Blvd.
Tampa, FL 33634
Chapter 11 Petition Date: January 9, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00105
Judge: Hon. Roberta A Colton
Debtor's Counsel: Scott A. Stichter, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
110 E. Madison St.
Suite 200
Tampa, FL 33602
Tel: (813) 229-0144
E-mail: sstichter@srbp.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Aubrey C. Greene, II as president.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/QOLNLNQ/Tampa_Brass_and_Aluminum_Corporation__flmbke-25-00105__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/QDHA2MQ/Tampa_Brass_and_Aluminum_Corporation__flmbke-25-00105__0001.0.pdf?mcid=tGE4TAMA
TD&H INC: To Sell Vehicles to AHJ Delivery for $227K
----------------------------------------------------
TD&H Inc. seeks approval from the U.S. Bankruptcy Court for the
Middle District of North Carolina, Greensboro Division, to
vehicles, free and clear of liens and other interest, to AHJ
Delivery Corp.
The Debtor owns seven vehicles purchased and financed to a
promissory note and commercial security agreement with Truist Bank.
The balance owed to Truist on the July Note was $279,765.21.
Other trucks owned by the Debtor act as collateral on the note
are:
--2021 Chevrolet Express 3500, VN ending 1424;
--2021 Chevrolet Express 3500, VIN ending 1419;
--2021 Chevrolet Express 3500, VIN ending 3522;
--2021 Chevrolet Express 3500, VIN ending 1438;
--2021 Chevrolet Express 3500, VIN ending 2505;
--2021 Chevrolet Express 3500, VIN ending 1397; and
--2021 Chevrolet Express 3500, VIN ending 1472, collectively known
as Truist Vehicles
AHJ Delivery offers to purchase the Truist Vehicles for a total
purchase price of $140.000 which the Debtor believes represents and
fair and reasonable price for the units based on the current age
and condition.
The Debtor owns a 2016 Freightliner P700, VIN ending 7682 purchased
and financed pursuant to a promissory note and commercial security
agreement dated September 29, 2023 with Truist. The Petition Date
balance owed to Truist on the September Note was $24,940.62
The buyer also offers to purchase the Freightliner for a purchase
price of $17,500, which the Debtor believes represents and fair and
reasonable price.
Truist consents the sale of the Truist Vehicles and the Freighliner
free and clear of all liens and other interests, so long as the
sale is consummated and payment remitted to Truist on or before
April 1, 2025.
The Debtor owns three vehicles purchased and financed pursuant with
First-Citizens Bank & Trust Company as follows:
-- 2021 Ford F59, VIN ending 5081 pursuant to a note and commercial
security agreement dated May 19, 2022 with a Petition Data balance
due of $52,067.03;
-- 2021 Ford F59, VIN ending 5101 pursuant to a note and commercial
security agreement dated May 19, 2022 with a Petition Date balance
due of $52,067.23; and
-- 2021 Chevrolet Express 3500, VIN ending 1108 pursuant to a note
and commercial security agreement dated July 14, 2021 with a
Petition Data balance due of $20,653.88, collectively known as
First Citizens Vehicles.
AHJ Delivery offers to purchase the First Citizens Vehicles for a
purchase price of $70,000.
First Citizens also consents to the sale of the First Citizens
Vehicle free and clear of all liens and other interests, so long as
the sale is consummated and payment of $70.000 is remitted for
First Citizens on or before April 1. 2025.
The Debtor asserts that the proposed sale is in the best interests
of the Debtor and the bankruptcy estate rather than subject the
vehicles to a public auction, with uncertain results.
The Debtor seeks to seek the vehicles to the purchaser, with
consent of the lien holders, where applicable, for a total price of
$227,500 that will be distributed to:
-- $157,500 to Truist Bank of the Truist Vehicles and the
Freightliner
-- $70,000 to First-Citizen Bank & Trust Company for the purchase
of the First Citizens Vehicles.
About TD&H, Inc.
TD&H, Inc. filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-10392) on June
25, 2024, listing $652,317 in assets and $2,207,775 in liabilities.
The petition was signed by Huntly Nero, president.
Judge Benjamin A. Kahn presides over the case.
Samantha K. Brumbaugh, Esq. at Ivey, Mcclellan, Siegmund, Brumbaugh
& Mcdonough, LLP represents the Debtor as legal counsel.
TELUS CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on December 4, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by TELUS Corporation. EJR also withdrew its rating
on commercial paper issued by the Company.
Headquartered in Vancouver, Canada, TELUS Corporation is a
telecommunications company providing a variety of communications
products and services.
THUNDER ROAD: Court Denies Bid to Use Cash Collateral
-----------------------------------------------------
Thunder Road Realty, LLC failed to obtain court approval to use
cash collateral to fund its operations.
In her Jan. 7 order, Judge Janet Bostwick of the U.S. Bankruptcy
Court for the District of Massachusetts denied Thunder Road
Realty's motion as the company does not have the right to collect
rents.
To the extent the company collected any rents since the foreclosure
on Nov. 14, 2024, the company must hold and segregate such funds
pending further ruling, Judge Bostwick wrote in her Jan. 7 order.
About Thunder Road Realty
Thunder Road Realty, LLC filed Chapter 11 bankruptcy petition
(Bankr. D. Mass. Case No. 24-12481) on December 11, 2024, with up
to $50,000 in assets and up to $1 million in liabilities.
Judge Janet E. Bostwick oversees the case.
The Debtor is represented by:
Michael B. Feinman
Feinman Law Offices
Tel: 978-475-0080
Email: mbf@feinmanlaw.com
TILI LOGISTICS: Updates Unsecureds & Secured Claims Pay
-------------------------------------------------------
Tili Logistics Corporation submitted a Second Amended Plan of
Reorganization.
The Plan payments will be funded from income from business
operations.
The Plan accounts for necessary payments towards secured creditors
which includes Loves Financial, the holder of a UCC-1 filing, as
well secured payments towards lenders on the trucks for the
remainder of the contract terms and at a planned interest rate of
11%. Those payments last for the remaining duration of the current
contracts lasting between 27 to 41 months.
When those payments and, the savings will add to the planned
disposable income from then until the end of the Plan. The value of
the vehicles will be mostly depreciated at that time and a portion
of the fleet will need to be replaced utilizing funds from the
truck replacement fund to complete the Plan.
Over the 60-month term, the Plan projects a total PDI of $465,606
and a monthly amount of $7761 to cover priority debts,
administrative expenses and unsecured creditor payments. At the end
of the Plan the company is projected to have approximately
$33,838.74 of funds in the bank to continue operations going
forward.
Class 2A consists of the Secured Claim of Love's Solutions, LLC
with a claim amount of $25,000 ($18,405.79 plus $6594 in attorney
fees and expenses). Claim will be paid over 60 months at 11%
interest for a monthly payment of $543.56 per month.
Class 2B consists of the Secured Claim of Small Business
Administration (EIDL loan). $104,397 is the secured portion of the
claim. This Class shall receive $483.48 a month for the full 30
years of the loan. Interest rate 3.75%.
Class 2C consists of the Secured Claim of RCI Trucks. $189,544 is
the secured portion of the claim. Claim will be paid over 41 months
at 11% interest for a monthly payment of $5567.26.
Class 2D consists of the Secured Claim of Equify Financial.
$105,000 is the secured portion of the claim. Claim will be paid
over 27 months at 11% interest for a monthly payment of $4407.68.
Class 2E consists of the Secured Claim of Financial Pacific
Leasing. $27,900 is the secured portion of the claim. Claim will be
paid over 33 months at 11% interest for a monthly payment of
$983.61.
Class 2F consists of the Secured Claim of Pathward. $26,000 is the
secured portion of the claim. Claim will be paid over 37 months at
11% interest for a monthly payment of $831.78.
Class 3 consists of General Unsecured Creditors. The pool of
unsecured creditors will share, pro rata, in the $7761 monthly
payment in months 45 through 60 of the Plan. All general unsecured
creditor claims are impaired.
A full-text copy of the Second Amended Plan dated January 3, 2025
is available at https://urlcurt.com/u?l=VSpEjM from
PacerMonitor.com at no charge.
About Tili Logistics Corporation
Tili Logistics Corporation is a trucking company in San Diego,
California.
Tili Logistics Corporation sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 24-02128) on June
8, 2024. In the petition signed by Sergio Casas-Silva, Jr., as
executive vice president, the Debtor reports estimated assets
between $100,000 and $500,000 and estimated liabilities between $1
million and $10 million.
The Honorable Bankruptcy Judge Christopher B. Latham oversees the
case.
The Debtor is represented by:
Steven E. Cowen, Esq.
S.E. COWEN LAW
333 H St. Ste. 5000
Chula Vista, CA 91910
Tel: (619) 202-7511
E-mail: cowen.christian@secowenlaw.com
TIMELINE CONSTRUCTION: Case Summary & 19 Unsecured Creditors
------------------------------------------------------------
Debtor: Timeline Construction, LLC
c/o Romy Solanji
5633 Southwest Fwy
Houston, TX 77057-7505
Business Description: Timeline Construction is a general
contractor specializing in new construction,
remodeling, custom change requests, and
punch-out services for high-end residential
and commercial clients.
Chapter 11 Petition Date: January 10, 2025
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 25-30212
Debtor's Counsel: Thomas F. Jones, III, Esq.
LAW OFFICES OF THOMAS F. JONES III
PO Box 570783
Houston TX 77257-0783
Tel: (832) 398-6182
E-mail: tfjonesiii@gmail.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Romy Solanji as managing member.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/FFHW5EQ/Timeline_Construction_LLC__txsbke-25-30212__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 19 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Vantage Bank Texas $6,200,000
Cody Cannon
5151 San Felipe St Ste 730
Houston, TX 77056-3726
2. Citizens 1st Bank $3,109,000
Attn: Brent Taylor
2001 E Southeast Loop 323
Tyler, TX 75701-8341
3. FNB of Eagle Lake $2,300,000
Shalor Townzen
408 Walnut St
Columbus, TX 78934-2422
4. Citizens Bank $1,900,000
Julie Randolph
3111 University Dr E
Bryan, TX 77802-3473
5. Austin Bank $1,400,000
Jorge Moreno
26502 Kuykendahl Rd
The Woodlands, TX 77375-1478
6. Stellar Bank $1,300,000
Omar Mourtaja
1900 Research Forest Dr
Spring, TX 77381
7. Capital Plus $546,305
Scott W. Applegate
2510 Solway Rd
Knoxville, TN 37931-3009
8. Newity $424,040
Benjamin Spector
123 W Washington St
Chicago, IL 60602
9. PNC Bank $391,000
Sarah B. Williams
10851 Mastin St Ste 300
Overland Park, KS 66210-1690
10. American Express $376,000
PO Box 981537
El Paso, TX 79998
11. Ulta Funding $365,000
David Fisher
1702 N Collins Blvd Ste 100
Richardson, TX 75080-3662
12. Vantage Bank Texas $344,306
45 Ne Loop 410
San Antonio, TX 78216-5832
13. Comdata $278,500
Bruce Latimer
5301 Maryland Way
Brentwood, TN 37027-5595
14. Agility Bank $250,000
Tom DeScioli
2401 N Shepherd Dr Suite 140
Houston, TX 77008-2990
15. American Bank $250,000
Anne Dinh
3737 Buffalo Speedway Ste 600
Houston, TX 77098-3752
16. Blue Tape $250,000
Homa Saleh
1390 Market St Ste 200
San Francisco, CA 94102-5404
17. A&M Contractors Inc Agreement $130,000
5505 Brystone Dr
Houston, TX 77041-7012
18. Zenith $100,720
Cole Reifler
445 Park Ave Fl 9
New York, NY 10022-8606
19. PNC Bank $29,362
Sarah B. Williams
10851 Mastin St Ste 300
Overland Park, KS 66210-1690
TONIX PHARMACEUTICALS: Sabby Volatility Holds 0.7% Equity Stake
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Sabby Volatility Warrant Master Fund, Ltd., Sabby Management, LLC,
and Hal Mintz disclosed in a Schedule 13G filing with the U.S.
Securities and Exchange Commission that as of December 31, 2024,
they beneficially own 1,306,313 shares of Tonix Pharmaceuticals
Holding Corp.'s common stock representing 0.7% of the Company's
outstanding shares of stock.
About Tonix Pharmaceuticals
Chatham, N.J.-based Tonix Pharmaceuticals Holding Corp., through
its wholly owned subsidiary Tonix Pharmaceuticals, Inc., is a
fully
integrated biopharmaceutical company focused on developing and
commercializing therapeutics to treat and prevent human disease
and
alleviate suffering.
As of September 30, 2024, Tonix had $95 million in total assets,
$20.8 million in total liabilities, and $74.2 million in total
equity.
Going Concern
The Company cautioned in its Form 10-Q report for the quarter
ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. The Company has suffered recurring
losses from operations and negative cash flows from operating
activities. As of March 31, 2024, the Company had working capital
of approximately $9.6 million and an accumulated deficit of
approximately $615.6 million. The Company held cash and cash
equivalents of approximately $7 million as of March 31, 2024.
During the fourth quarter of 2023, the Company engaged CBRE, an
international real estate brokerage firm, to potentially find a
strategic partner for or buyer of its Advanced Development Center
in North Dartmouth, Massachusetts, to align with its current
business objectives and priorities. As of March 31, 2024, the
Company does not have a commitment in place to sell the building.
The Company believes that its cash resources at March 31, 2024,
and
the gross proceeds of $4.4 million raised from an equity offering
in the second quarter of 2024, will not meet its operating and
capital expenditure requirements through the second quarter of
2025.
TRANSALTA CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
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Egan-Jones Ratings Company on December 2, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by TransAlta Corporation. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Calgary, Canada, TransAlta Corporation is a
non-regulated electric generation and marketing company.
UNLIMITED SOURCE: Gary Murphey Named Subchapter V Trustee
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The U.S. Trustee for Region 21 appointed Gary Murphey of Resurgence
Financial Services, LLC as Subchapter V trustee for Unlimited
Source Consulting Agency, LLC.
Mr. Murphey will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Murphey declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gary Murphey
Resurgence Financial Services, LLC
3330 Cumberland Blvd., Suite 500
Atlanta, GA 30330
Tel: (770) 933-6855
Email: Murphey@RFSLimited.com
About Unlimited Source Consulting Agency
Unlimited Source Consulting Agency, LLC is a limited liability
company based in Atlanta, Ga.
Unlimited Source Consulting Agency filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
25-50203) on January 6, 2025, with $1 million to $10 million in
both assets and liabilities.
Paul Reece Marr, Esq., at Paul Reece Marr, P.C. represents the
Debtor as legal counsel.
V.F. CORP: Egan-Jones Retains BB Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company on December 4, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by V.F. Corporation. EJR also withdrew its rating on
commercial paper issued by the Company.
Headquartered in Denver, Colorado, V.F. Corporation is an
international lifestyle apparel and footwear company.
VIGILANT HEALTH: Voluntary Chapter 11 Case Summary
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Debtor: Vigilant Health Network, Inc.
d/b/a Vigilant Health
f/d/b/a Southern Health Network, Inc.
f/d/b/a Vigilant Health Diabetes Care
f/k/a Vigilant Health Partners, Inc.
FKA Mississippi Communities Health Advisers
10 Burton Hills Blvd., Ste 400
Nashville, TN 37215
Business Description: Vigilant Health specializes in managing
chronic diseases, including diabetes,
utilizing its clinical and financial model.
Its proprietary technology converts claims
and clinical data into actionable
information that is used by clinicians to
make treatment decisions, develop plans of
care, and engage patients.
Chapter 11 Petition Date: January 9, 2025
Court: United States Bankruptcy Court
Middle District of Tennessee
Case No.: 25-00100
Debtor's Counsel: Robert J. Gonzales, Esq.
EMERGELAW, PLC
4235 Hillsboro Pike, Suite 300
Nashville, TN 37215
Tel: (615) 815-1535
Email: ecf@emerge.law
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by G. Austin Triggs, Jr. as executive
chairman.
The Debtor failed to include a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/746NS4A/Vigilant_Health_Network_Inc__tnmbke-25-00100__0001.0.pdf?mcid=tGE4TAMA
VISUAL TECHNOLOGY: Brian Shapiro Named Subchapter V Trustee
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The U.S. Trustee for Region 17 appointed Brian Shapiro as
Subchapter V trustee for Visual Technology Innovations Inc.
Mr. Shapiro will be paid an hourly fee of $625 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Shapiro declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brian Shapiro
510 S. 8th Street
Las Vegas, NV 89101
Phone: (702) 386-8600
Email: brian@trusteeshapiro.com
About Visual Technology Innovations Inc.
Visual Technology Innovations Inc. is committed to delivering
impactful and immersive viewing experiences to a global audience
through cutting-edge technologies. From smartphones and tablets to
laptops and televisions, consumers continuously seek improvements
that enhance their overall experience. VTI aims to develop and
implement innovative solutions that provide enhanced viewing and
user engagement, utilizing glasses-free and other advanced
technologies.
Visual Technology Innovations sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-10024) on January
6, 2025. In its petition, the Debtor reported estimated assets and
liabilities between $1 million and $10 million each.
Judge August B. Landis handles the case.
Matthew C. Zirzow, Esq., and Zachariah Larson, Esq., at Larson &
Zirzow LLC represent the Debtor as counsel.
WARREN, MN: S&P Withdraws 'BB+' Rating on General Obligation Bonds
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S&P Global Ratings withdrew its 'BB+' general obligation (GO) bond
rating on the City of Warren, Minn. and removed the rating from
CreditWatch, where it was placed with negative implications on Nov.
26, 2024.
"The withdrawal reflects the lack of adequate and timely financial
information of the Warren Economic Development Authority (WEDA)
fund necessary to maintain our surveillance of the ratings in
accordance with our applicable criteria and policies," said S&P
Global Ratings credit analyst Melody Vinje. While S&P obtained the
most recent audit of the City of Warren, the financial statements
did not include an independent, third-party, audited financial
statements of the WEDA fund, which inhibits our ability to assess
total governmental performance and, therefore, maintain the rating.
S&P did not receive the requested audited financial statements of
the WEDA fund during the 30-day period between Nov. 26, 2024, and
Dec. 26, 2024.
S&P said, "To maintain our ratings, we rely on timely financial and
related information relevant to our credit analysis. For U.S.
public finance issuers and obligors, we view the proactive
disclosure and dissemination of information as a positive
management characteristic. Conversely, we view the lack of timely
disclosure and information flow negatively."
WESCO INT'L: Egan-Jones Retains BB- Sr. Unsecured Ratings
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Egan-Jones Ratings Company on December 4, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by WESCO International, Inc. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Pittsburgh, Pennsylvania, WESCO International,
Inc. distributes electrical products and other industrial
maintenance, repair, and operating supplies.
WESTCHESTER COUNTY HEALTH: Moody's Confirms B1 Revenue Bond Ratings
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Moody's Ratings has confirmed the B1 revenue bond ratings for
Westchester County Health Care Corporation (WCHCC) (NY) and Charity
Health System (CHS) (NY). The outlooks have been revised to
negative. This action concludes Moody's rating review for possible
downgrade that was initiated on June 20, 2024. WCHCC had $1.1
billion and CHS had $163 million of debt at fiscal year end 2023.
The confirmation of WCHCC's B1 bond rating reflects the recent
renewal of bank lines to October 2025 and anticipated benefits from
consultant-led turnaround initiatives. The confirmation of CHS's B1
bond rating is based on WCHCC's legal guarantee to pay debt service
on CHS's bonds.
RATINGS RATIONALE
The B1 incorporates Westchester County Health Care Corp.'s (WCHCC
or "System") strong market position as the only tertiary and
quaternary provider between New York City and Albany, material and
durable volume growth on the main campus, and benefits from a new
tower opening in early 2026. However, system liquidity will remain
very weak and highly reliant on bank lines. The flagship has shown
quarterly improvement, but year-to-date cashflow is below the prior
year and cashflow losses at the HealthAlliance and Charity Health
System (CHS) will dilute system margins. While proceeds from a
DASNY loan will slow the pace of cash declines at HealthAlliance
and CHS, there are several liquidity risks in addition to cashflow
losses. These include the settlement of an October 2024 lawsuit,
costs associated with completing the tower if fundraising targets
are not achieved, and CHS's large bullet maturity in November 2025
if it is not refinanced. Management risk is higher with the
unexpected departure of the CFO last year and the transition of a
new CEO this year. While WCHCC has strong governance ties to New
York State and Westchester County and will continue to receive
supplemental Medicaid funds, the rating assumes no extraordinary
short-term support from these bodies based on the recent past.
RATING OUTLOOK
The negative outlook reflects the risk of further declines in
already very weak liquidity predicated on extensive use of bank
lines for liquidity and operating challenges that could further
stress liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Material growth in liquidity
-- Sustained higher operating cashflow margins for the
consolidated system including CHS
-- Demonstrated financial support from Westchester County
-- For Charity Health System, upgrade of Westchester County Health
Care Corp.
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Failure to improve operating performance at WCHCC and CHS on a
quarter to quarter basis
-- Decline in system cash on hand and cash-to-debt to below 25
days and 15%, resp.
-- Reduction in availability of or inability to renew bank lines
of credit or inability to refinance CHS's November 2025 bullet
maturity
-- Increased risk of covenant breach
-- For Charity Health System, downgrade of Westchester County
Health Care Corp.
LEGAL SECURITY
The sole obligated group member is WCHCC, which includes the
Westchester Medical Center Valhalla and MidHudson campuses. The
obligated group does not include HealthAlliance and CHS. The bonds
have a pledge of gross receipts of the obligated group and
mortgages, which consist of leasehold interests in the Valhalla and
MidHudson campuses.
WCHCC provides an irrevocable and unconditional guaranty covering
full and timely payment of all scheduled payments of principal and
interest on CHS's bonds. The guarantee is evidenced through a
supplemental indenture to WCHCC's master trust indenture, putting
CHS's bonds on parity with WCHCC's other MTI obligations. While the
guarantee does not extend to accelerated bonds, the indenture does
not allow for acceleration of principal and interest on CHS's
bonds. Additionally, CHS's bonds are not subject to mandatory
redemptions. CHS's bonds are secured by gross receivables of its
obligated group, which includes the hospitals but excludes
physician-related entities.
PROFILE
The Westchester County Health Care Corporation (WCHCC), a New York
Public Benefit Corporation, operates the Westchester Medical Center
including operations at the Valhalla campus and the MidHudson
Regional Hospital in Poughkeepsie, New York. WCHCC is also the
majority corporate member (60%) of Bon Secours Charity Health
System with hospitals in Rockland and Orange Counties, and the sole
member of HealthAlliance with hospitals in Ulster and Delaware
Counties. The Valhalla campus is leased from Westchester County,
although WCHCC has not been required to pay rent under the
conditions of the lease agreement.
METHODOLOGY
The principal methodology used in rating Westchester County Health
Care Corporation, NY was Not-for-profit Healthcare published in
October 2024.
WESTLAKE SURGICAL: Unsecureds Owed $29M to Recover 5%
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Westlake Surgical, L.P. d/b/a The Hospital at Westlake Medical
Center submitted an Amended Disclosure Statement describing Amended
Plan of Reorganization dated January 3, 2025.
The purpose of the Plan is to reorganize the Debtor and provide
distributions to its Creditors. In broad overview, the Plan
proposes to extinguish current Equity Interests in the Debtor;
issue new equity to Westlake Principal Partners, LLC ("WPP"), an
affiliate of some of the Debtor's current owners, in exchange for a
new money contribution from WPP and the conversion of the
debtor-in-possession financing facility funded by WPP into
reorganized equity; and make distributions to general unsecured
creditors in the amount of the $1,500,000 GUC Cash Pool.
The Debtor's funding for the Plan comes from two sources. First,
eCapital will convert its current facility into the Superpriority
Exit Facility, which will provide working capital to the
Reorganized Debtor. Second, WPP will provide the WPP Effective Date
Contribution in the amount of $3,500,000 in cash, less the total
amount actually advanced to the Debtor by WPP under WPP's
$1,000,000 debtor-in-possession financing facility. Accounting for
the WPP DIP, the Debtor anticipates that the actual amount of the
WPP Effective Date Contribution will be $2,500,000.
The Plan incorporates the terms of two settlements, which have
unlocked value for holders of General Unsecured Claims and
facilitated the Debtor's successful reorganization.
First, the Plan implements the Committee Settlement, negotiated
among the Debtor, WPP, the Committee, eCapital, and WestRise. As
set forth more fully in section 6.03(a) of the Plan, the Committee
Settlement provides that General Unsecured Claims will receive pro
rata distributions from the $1,500,000 GUC Cash Pool; WPP will
remit $300,000 to the GUC Distribution Reserve on the Effective
Date to fund the GUC Cash Pool; and WPP and the Reorganized Debtor
will make Post-Emergence Monthly Payments to the GUC Distribution
Reserve after the Effective Date to fund the remaining $1,200,000
owed to the GUC Cash Pool.
If WPP and the Reorganized Debtor do not make the Post-Emergence
Monthly Payments to the GUC Distribution Reserve when due under the
Plan, the holder of any unsatisfied General Unsecured Claim can
serve written notice of default on WPP and the Reorganized Debtor.
If WPP or the Reorganized Debtor does not cure such default, or if
the Bankruptcy Court determines that a default has occurred, such
holder may pursue any and all remedies available under applicable
state or federal law and assert a default interest rate of 18%
accruing as of the date of the default. Absent the Committee
Settlement, distributions to holders of Allowed General Unsecured
Claims under the Plan may have been less.
Second, the Plan implements the Professional Fee Settlement, again
negotiated among the Debtor, WPP, the Committee, eCapital, and
WestRise. As a default rule, Professional's claims for professional
fees must be paid as administrative expenses on the Effective Date
or as soon as practicable after they are Allowed by the Bankruptcy
Court. Here, the Debtor lacks sufficient liquidity to make such
payments on such timeline. Accordingly, the parties have agreed
that the Bankruptcy Court shall determine the Allowed amount of all
Professional Fee Claims; WPP shall remit $1,383,000 to the
Professional Fee Reserve on the Effective Date to fund pro rata
distributions on account of Professional Fee Claims; the
Reorganized Debtor and WPP shall make the Post-Emergence Monthly
Payments to the Professional Fee Reserve when due under the Plan.
The Committee supports confirmation of the Plan for the reasons
outlined in the letter from the Committee enclosed with this
Disclosure Statement and your ballot. During the Chapter 11 Case,
the Committee investigated certain potential Causes of Action that
could be asserted by the Debtor or the Committee on behalf of the
Estate and, in turn, generate value for the benefit of holders of
General Unsecured Claims. Considering the financial resources that
would be required for the Committee to pursue those potential
Causes of Action and the Debtor's limited liquidity, the Committee
determined that the interests of holders of General Unsecured
Claims would be best served by entering into the Committee
Settlement. The principal components of the Committee Settlement
are as follows:
* General Unsecured Claims shall be Allowed or Disallowed as
set forth in Article III and receive the treatment afforded to such
Claims in Section 5.05 of the Plan.
* WPP shall remit $300,000 to the GUC Distribution Reserve on
the Effective Date for Pro Rata Distribution to holders of Allowed
General Unsecured Claims.
* WPP and the Debtor (on behalf of itself and the Reorganized
Debtor) agree to make the Post-Emergence Monthly Payments to the
GUC Distribution Reserve in the aggregate amount of $1,200,000 as
provided for in Section 6.02 of the Plan, for total distributions
to holders of Allowed General Unsecured Claims of $1,500,000.
* The Debtor (on behalf of itself and the Reorganized Debtor)
and its Estate, and any and all other entities who may purport to
assert any Claims or Causes of Action, directly or derivatively,
by, through, for, or because of the Debtor or its Estate, shall
forever release each holder of an Allowed General Unsecured Claim
from any Avoidance Action.
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 of such Claim, in exchange for full and final
satisfaction, settlement, release, and discharge of, and in
exchange for, such Allowed General Unsecured Claim, each holder of
an Allowed General Unsecured Claim shall receive its Pro Rata share
of the GUC Cash Pool up to the full amount of such Allowed General
Unsecured Claim; provided that the Reorganized Debtor shall not be
required to make Distributions to any holder of an Allowed General
Unsecured Claim if such Distribution is less than $50.00. The
allowed unsecured claims total $29 million. This Class will receive
a distribution of 5% of their allowed claims.
A full-text copy of the Amended Disclosure Statement dated January
3, 2025 is available at https://urlcurt.com/u?l=1ZLFrq from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Charlie Shelton, Esq.
Ruth Van Meter, Esq.
HAYWARD PLLC
7600 Burnet Road, Suite 530
Austin, TX 78757
Tel: (737) 881-7101
E-mail: cshelton@haywardfirm.com
About Westlake Surgical
The Hospital at Westlake Medical Center is a physician-owned
boutique hospital in Westlake Hills, Texas, a suburb of Austin.
Guided by an unwavering commitment to delivering quality healthcare
services in a comfortable setting, its core service areas include
surgical procedures, outpatient radiology, and a 24/7 emergency
room.
Westlake Surgical, LP, doing business as The Hospital at Westlake
Medical Center, sought Chapter 11 protection (Bankr. W.D. Texas
Case No. 23-10747) on Sept. 8, 2023.
The Honorable Shad Robinson is the case judge.
The Debtor tapped Hayward, PLLC as legal counsel and Stout Capital,
LLC as investment banker. Donlin, Recano & Company, Inc. is the
claims agent.
eCapital Healthcare Corp., the DIP lender, is represented by Foley
& Lardner, LLP.
WILL NOT SELL: Seeks Chapter 11 Bankruptcy Protection in Florida
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On January 10, 2025, Will Not Sell LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Southern District of
Florida.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Will Not Sell LLC
Will Not Sell LLC is a limited liability company.
Will Not Sell LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10198) on January
10, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Robert A. Mark oversees the case.
Sagre Law Firm, P.A. represents the Debtor as counsel.
WILL NOT SELL: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Will Not Sell, Inc.
281 NE 78 Street
Miami, FL 33138
Chapter 11 Petition Date: January 10, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 25-10198
Judge: Hon. Robert A Mark
Debtor's Counsel: Ariel Sagre, Esq.
SAGRE LAW FIRM, P.A.
5201 Blue Lagoon Drive, Suite 892
Miami, FL 33126
Tel: 305-266-5999
E-mail: law@sagrelawfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by 281 NE 78th St, LLC, a Florida limited
liability, by Robinson Julien, its Sole Member.
The Debtor failed to include a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/M4ETS5I/WILL_NOT_SELL_LLC__flsbke-25-10198__0001.0.pdf?mcid=tGE4TAMA
WINDTREE THERAPEUTICS: Launches Strategy for Revenue Growth
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Windtree Therapeutics, Inc., announced it has launched a new
corporate strategy to become a revenue generating biotech company
through acquisitions of small companies and their FDA-approved
products while the Company continues to progress its cardiovascular
and oncology development pipeline. The Company will seek
acquisition targets to achieve the Company's new corporate
strategy.
Windtree believes there is an opportunity in the market: the
acquisition of small companies with FDA-approved products from the
many small biotech companies that struggle to maximize their
commercialization potential. To capitalize on this opportunity,
Windtree plans to become a parent company acquiring strategic
subsidiaries with FDA-approved products. The Company's management
team has commercialization expertise in both large pharmaceutical
and small biotech companies across multiple therapeutic areas,
potentially enabling them to leverage synergies and optimize
commercial performance across future subsidiaries.
The Company will seek to use equity to acquire subsidiaries. The
number of deals, if any, over time will depend upon the valuation
and growth potential of the subsidiary companies.
"We believe that Windtree becoming a revenue generating company
would be a significantly positive transformation and would mark a
new chapter in our growth story," said Jed Latkin, CEO of Windtree.
"By pursuing this strategy, we maintain our commitment to advance
our promising cardiovascular and oncology pipeline while
simultaneously leveraging our deep commercialization expertise to
accelerate revenue growth through strategic acquisitions. This
approach allows us to create near-term value through acquired
commercial operations while preserving the potential of our
development programs."
About Windtree Therapeutics
Headquartered in Warrington, Pennsylvania, Windtree Therapeutics,
Inc. -- windtreetx.com -- is a biotechnology company focused on
advancing early and late-stage innovative therapies for critical
conditions and diseases. Windtree's portfolio of product
candidates includes istaroxime, a Phase 2 candidate with SERCA2a
activating properties for acute heart failure and associated
cardiogenic
shock, preclinical SERCA2a activators for heart failure, and
preclinical precision aPKCi inhibitors that are being developed for
potential use in rare and broad oncology applications. Windtree
also has a licensing business model with partnership out-licenses
currently in place.
Philadelphia, Pennsylvania-based EisnerAmper LLP, the company's
auditor since 2022, issued a "going concern" qualification in its
report dated April 16, 2024, citing that the company has suffered
recurring losses from operations and expects to incur losses for
the foreseeable future, which raises substantial doubt about its
ability to continue as a going concern.
WISA TECHNOLOGIES: Closes Purchase of Data Vault Holdings' Assets
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WiSA Technologies, Inc., closed its purchase of Datavault
intellectual property and information technology assets of
privately held Data Vault Holdings Inc. on Dec. 31, 2024. In
conjunction with the closing, WiSA issued 40 million shares of
restricted common stock, par value $0.0001 per share, to Data Vault
Holdings; Nathaniel T. Bradley (Nate) was named CEO and Director;
and Brett Moyer assumed a new role as CFO while remaining a
director. WiSA Technologies plans to change its name to Datavault
Inc. in mid-January 2025, concurrent with a planned change of its
Nasdaq ticker symbol to ADIO. The Company will continue to trade
under the Nasdaq ticker symbol WISA until such time as the new
ticker symbol is announced.
On Dec. 31, 2024, in connection with Nate Bradley's appointment as
the Company's CEO, Mr. Bradley was granted 1,200,000 units of
restricted stock of WiSA as an inducement material to Mr. Bradley's
entering into employment with WiSA. The Units were approved by the
board of directors of the Company and granted outside of the
Company's 2020 Stock Incentive Plan and 2018 Long-Term Stock
Incentive Plan in accordance with Nasdaq Listing Rule 5635(c)(4).
In connection with the award of Units, Mr. Bradley and the Company
have entered into an Inducement Award Agreement for the Units,
which agreement contemplates half of the Units vesting in equal
3-month installments over a 36-month period beginning March 20,
2025, and the other half of the Units vesting upon the Company's
aggregate revenue equaling or exceeding $40 million over any
trailing 12 calendar month period ending on or prior to the date
that is five years from the grant date.
Nate Bradley, CEO of WiSA Technologies said, "Successfully
integrating Datavault and WiSA creates a much larger and more
robust company with significant synergies. As a public company, we
are positioned to grow by acquiring complementary niche
technologies, to raise our investment profile and to further
leverage our core technologies. The strategic opportunities are
abundant, and I am thrilled to be leading our transformation."
Brett Moyer, CFO of WiSA Technologies, said, "Nate is a technology
visionary with the experience of successfully launching multiple
publicly traded companies. I resoundingly welcome him as incoming
CEO and director to create value for our shareholders. Datavault
has been advancing its technology and strategic relationships since
its founding six years ago, building value in the process. Now, we
have a more diversified portfolio of assets and broad reach into
multiple markets that are expected to exceed $4 billion in annual
sales. Our offerings are gaining traction and now we can
accelerate our growth plan."
Datavault is a data technology and licensing company that enables
clients and strategic partners to monetize their Blockchain Data
and AI Web 3.0 assets via tokenization, data ownership and digital
twins offering two primary solutions:
* Data Sciences will license High Performance Computing (HPC)
software applications and Web 3.0 data management serving the
biotech research, energy, education, fintech, real estate, and
healthcare industries, among others.
* Acoustic Sciences will license spatial and multichannel HD
sound transmission, including proprietary brands ADIO, WiSA and
Sumerian, to customers in sports & entertainment, events & venues,
restaurants, automotive, finance, and other industries.
The Datavault Platform
Datavault's software and encryption enables a comprehensive
solution for managing and monetizing data in the Web 3.0
environment. It allows risk-free licensing of name, image, and
likeness (NIL) by securely attaching physical real-world objects to
immutable metadata or blockchain objects, fostering responsible AI
with integrity. Datavault's solutions ensure privacy and credential
protection. They are completely customizable and offer AI and ML
automation, third-party integration, detailed analytics and data,
marketing automation and advertising monitoring.
The platform creates value through scarcity, utility, and encrypted
data protection and generates revenue through licensing
partnerships that provide detailed analytics, sophisticated HPC
modeling, digital ownership, tokenization, and advertising, among
other means.
Summary of the Asset Purchase
* Consideration paid to Data Vault Holdings in exchange for
Datavault and ADIO intellectual property and information technology
assets by WiSA Technologies.
- Closing Stock Consideration issued at closing of the
transaction
- $10 million in an unsecured promissory note due 3 years from
closing, with 10% of the proceeds of any financings used to
pay down or pay off the promissory note in the interim
* 3% royalty on future net revenues from Datavault and ADIO
product lines
Restricted Common Stock Distribution to Data Vault Holdings'
Stockholders
In connection with the closing of the asset purchase, Data Vault
Holdings distributed the Closing Stock Consideration pro rata to
its stockholders, excluding 3,999,911 shares of Common Stock that
are held by Data Vault Holdings.
Nathaniel (Nate) Bradley
Nathaniel (Nate) Bradley, CEO and Co-founder of Data Vault
Holdings, a highly accomplished inventor with over 70 international
and U.S. patents across diverse fields such as Internet
broadcasting, mobile advertising, behavioral healthcare,
blockchain, cybersecurity, AI, and data science. As CEO and
co-founder of Data Vault Holdings Inc., which operates Datavault
Inc., Adio LLC, True Luck Inc., and Data Donate Technologies,
Bradley has developed patented technologies that establish
Datavault as a leader in Web 3.0 data monetization. He has also
lobbied Congress for a Digital Bill of Rights and founded the
Intellectual Property Network Inc., offering IP and IT development
services globally. Previously, Bradley was the inventor and
founder of AudioEye (Nasdaq: AEYE), where he pioneered cloud-based
assistive technologies, earning recognition for his contributions
to internet accessibility. His extensive experience includes roles
as Chief Technology Officer for Marathon Patent Group (currently
named Marathon Digital Holdings, Nasdaq: MARA) and involvement in
significant acquisitions within the Internet Radio industry.
Legal Advisors
Sullivan & Worcester LLP served as legal counsel for WiSA
Technologies, and Mitchell Silberberg & Knupp LLP served as legal
counsel for Data Vault Holdings Inc.
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.
WOM SA: Gets Court Approval to Raise $500MM to Exit US Bankruptcy
-----------------------------------------------------------------
Steven Church of Bloomberg News reports that Chile's telecom WOM
received court approval to raise $500 million as part of an
agreement with noteholders to exit bankruptcy and end US judicial
oversight of the company.
Under the deal, noteholders, including funds managed by BlackRock
Financial Management and Moneda, will back WOM's issuance of enough
new convertible notes to facilitate its bankruptcy exit, according
to court filings.
During a court hearing on January 9, 2025, US Bankruptcy Judge
Karen Owens approved the rules for the rights offering, the report
relates. She also instructed the company to translate as many
documents as possible into Spanish and distribute notices, the
report adds.
About WOM SA
WOM is a Chilean telecommunications provider, focused on offering
mobile voice, data, and broadband services, along with a rapidly
expanding "Fiber to the Home" broadband offering, to consumers and
businesses in Chile. Since the acquisition of Nextel Chile in 2015
through Novator Partners LLP's investment vehicle NC Telecom AS,
WOM has expanded from having virtually no market share to
establishing itself as the second-largest mobile network operator
in Chile.
WOM sought relief under Chapter 11 of the Bankruptcy Code (Bankr.
D. Del. Lead Case No. 24-10628) on April 1, 2024. In the petition
filed by Timothy O'Connoer, as independent director, the Debtor
estimated assets and liabilities between $1 billion and $10 billion
each.
The Honorable Bankruptcy Judge Karen B. Owens oversees the case.
The Debtors tapped White & Case, LLP as general bankruptcy counsel;
Richards, Layton & Finger, P.A. as local bankruptcy counsel;
Riveron Consulting, LLC, as financial advisor; and Rothschild & Co
US Inc. as investment banker. Kroll Restructuring Administration,
LLC, is the claims agent.
WORKSPORT LTD: Reflects on Strong 2024, Targets Major 2025 Growth
-----------------------------------------------------------------
Worksport Ltd., a U.S. based manufacturer and innovator of hybrid
and clean energy solutions for the light truck, overlanding, and
global consumer goods sectors, would like to extend warm holiday
greetings and sincere appreciation to all shareholders, partners,
and customers. As the year draws to a close, Worksport proudly
reflects on a pivotal 2024 filled with meaningful milestones, rapid
sales growth, and a promising outlook for the future.
CEO Statement:
"2024 was a pivotal year for Worksport," said Steven Rossi, CEO of
Worksport Ltd. "Just a few short years ago, in 2021, we announced
our intention to produce American-made goods and develop the SOLIS
and COR clean-tech systems. Today, we have an IP portfolio of over
160 assets, rapidly growing revenue, a clear path to achieving cash
flow positivity next year, and three impending product launches
that we believe will drive even stronger performance.
Rossi continued: "With these exciting new flagship product launches
and more in 2025, we will target increased gross margins, ISO
certification, cash flow positivity, revenue growth, and additional
partnerships; while beginning to explore strategic acquisitions for
top line growth and vertical integration. As we execute each
initiative, our vision for 2026 and beyond will begin to take
shape. There is much to accomplish in the year ahead, and we intend
to keep investors informed of every key milestone, stay tuned! As
your CEO, I remain fully committed to advancing Worksport, and I
deeply appreciate your support throughout 2024. Wishing everyone a
very happy New Years."
Outlook for 2025 and Beyond:
Worksport projects exceeding its 2024 revenue guidance of $8
million, a substantial jump from $1.5 million in 2023. Looking
ahead to 2025, the Company anticipates revenue growth in multiples
of today's level. With its high-demand premium tonneau cover, the
AL4, ramping up in Q1 2025 and the market releases of SOLIS and COR
anticipated in Q2/Q3 2025, Worksport expects to continue capturing
greater market share and establishing itself as a leader in
clean-tech and automotive innovation. Worksport recently announced
an amendment to its corporate treasury strategy, allowing the
purchase of inflation resistant crypto assets (BTC & XRP), limited
by various risk controlling mechanisms. Worksport will eagerly
watch bureaucratic news related to BTC & XRP in 2025.
New Investor Relations Website: Join our newsletter and view our
corporate vision at: https://investors.worksport.com
Key 2024 Achievements:
* U.S. Manufacturing Expansion:
-- In January 2024, Worksport initiated full-scale production
at its state-of-the-art U.S. factory, underscoring its commitment
to quality, domestic manufacturing, and operational efficiencies.
In March 2024 we were awarded a $2.8M Manufacturing Grant from the
State of New York. In Q4 2024, we increased factory staffing by
30%.
* E-Commerce Launch and Revenue Growth:
-- In March 2024, the Company launched marketing efforts for
its e-commerce platform, www.worksport.com, expanding its
direct-to-consumer reach. Following a 275% revenue increase from Q1
to Q2 2024, Q3 revenues surged another 63% from Q2, illustrating
the strength of Worksport's strategic investments and robust
digital presence.
* B2B Branded Business Expansion:
-- In the second half of 2024, Worksport's B2B branded
business experienced over 200% growth, reinforcing the Company's
multi-channel sales strategy and the growing recognition of
Worksport's premium offerings.
* Clean-Tech Advancements: SOLIS and COR Alpha Release:
-- Worksport successfully initiated the alpha release of its
SOLIS solar tonneau cover and COR mobile power system. Early tests
have already demonstrated the product's capability, including
charging a Tesla Model 3, and further improvements are expected as
the Company refines applications heading into commercial launch.
About Worksport Ltd.
West Seneca, N.Y.-based Worksport Ltd., through its subsidiaries,
designs, develops, manufactures, and owns intellectual property on
a portfolio of tonneau cover, solar integration, portable power
station, and NP (Non-Parasitic), Hydrogen-based green energy
products and solutions for the automotive aftermarket accessories,
power storage, residential heating, and electric vehicle-charging
industries.
Going Concern
The Company cautioned in its Form 10-Q Report for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. As of March 31, 2024, the Company
had $3,536,980 in cash and cash equivalents. The Company has
generated only limited revenues and has relied primarily upon
capital generated from public and private offerings of its
securities. Since the Company's acquisition of Worksport in fiscal
year 2014, it has never generated a profit.
As of September 30, 2024, Worksport had $24,939,158 in total
assets, $8,576,083 in total liabilities, and $16,363,075 in total
shareholders' equity.
WYNNE TRANSPORTATION: Case Summary & 30 Top Unsecured Creditors
---------------------------------------------------------------
Seven affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Wynne Transportation Holdings, LLC (Lead Case) 25-10027
d/b/a U.S. Crew Change
14110 N. Dallas Parkway
Suite 240
Dallas, TX 75254
Wynne Transportation, LLC 25-10028
Coastal Crew Change Company, LLC 25-10029
WTH Commercial Services, LLC 25-10030
Southwest Crew Change Company, LLC 25-10031
Great Plains Crew Change Company, LLC 25-10032
Allegheny Crew Change Company, LLC 25-10033
Business Description: U.S. Crew Change is a transportation company
that specializes in providing industrial
employee transportation, turnaround shuttle
services, emergency transportation, and on-
site shuttles. The company offers
customized transportation solutions for
industries such as LNG, petrochemical,
mining, large commercial facilities, and
offshore oil and gas service projects.
Chapter 11 Petition Date: January 10, 2025
Court: United States Bankruptcy Court
District of Delaware
Judge: Hon . Judge Karen B. Owens
Debtors' Counsel: Matthew B. McGuire, Esq.
LANDIS RATH & COBB LLP
919 Market Street
Suite 1800
Wilmington, DE 19801
Tel: (302) 467-4400
Fax: (302) 467-4450
Email: mcguire@lrclaw.com
Debtors'
Notice &
Claims
Agent: OMNI AGENT SOLUTIONS, INC.
Lead Debtor's
Estimated Assets: $10 million to $50 million
Lead Debtor's
Estimated Liabilities: $10 million to $50 million
The petitions were signed by M. Benjamin Jones as chief
restructuring officer.
A full-text copy of the Lead Debtor's petition is available for
free on PacerMonitor at:
https://www.pacermonitor.com/view/CLXPLUQ/Wynne_Transportation_Holdings__debke-25-10027__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. GETZ Transport Solutions, LLC Litigation $32,822,931
1708 Spring Green Blvd, Suite 120-26 Judgment
Katy, TX 77494
c/o George Pickard
Phone: 713-410-4030
Email: george@getztransportsolutions.com
2. Whitley Penn Trade Payable $259,444
640 Taylor Street, Suite 2200
Fort Worth, TX 76102
c/o Kathleen Hale
Phone: 817-259-9798
Email: wpbilling@whitleypenn.com
3. Carolina Casualty Insurance $215,983
Insurance Company Premiums
PO Box 639938
Cincinnati, OH 45263-9938
c/o Theresa Reynolds
Phone: 904-363-8018
Email: treynolds@carolinacas.com
4. Sumitomo Mitsui Finance & Trade Payable $170,714
Leasing Co, Ltd
PO Box 530023
Atlanta, GA 30353
c/o Jamie Gao
Phone: 855-434-3564
Email: jamie.gao@smflus.com
5. ACRI Defense LLC Trade Payable $169,814
dba Vidar Frontera Solutions
9804 Valencia Ave
Lubbock, TX 79424
c/o Bryan Smith
Phone: 651-236-7031
Email: smith.b@acridefense.com
6. Tradition Equipment, LLC Trade Payable $138,507
1645 Lyndale Ave N
Faribault, MN 55021
c/o Ryan Geiger
Phone: 713-940-6562
Email: ryan@traditionequipment.com
7. Rush Truck Centers Trade Payable $105,508
of Idaho Inc.
4060 W Andco Dr
Idaho Falls, ID 83402
c/o Hannah Atack
Phone: 208-401-2245
Email: atackh@rushenterprises.com
8. NFI Aftermarket Parts Trade Payable $87,315
PO Box 857758
Minneapolis, MN 55485
c/o Ryan Horrell
Phone: 502-318-3123
Email: ryan@horrell@nfi.parts
9. McGriff, Seibels & Insurance $75,021
Williams, Inc. Premiums
PO Box 890635
Charlotte, NC 28289
c/o Carolyn Blake
Phone: 832-799-0807
Email: cblake@mcgriff.com
10. Texas Mutual Insurance Company Insurance $68,974
PO Box 12058 Premiums
Austin, TX 78711-2058
c/o Accounts Receivable
Phone: 800-859-5995
Email: painterimfaxes@texasmutual.com
11. Inter-State Oil Co. Trade Payable $65,798
8221 Alpine Ave
Sacramento, CA 95826
c/o Heather Aginaga
Phone: 312-588-3378
Email: haginaga@interstateoil.com
12. El Camino Bus Lines Inc Trade Payable $65,088
911 Enid St
Houston, TX 77009
c/o Martin Chavez
Phone: 866-571-2435
Email: caminobuslines@gmail.com
13. STF Transportation LLC Trade Payable $64,557
5015 Carey Rd
Sacramento, CA 95835
c/o Shirantha Fernando
Phone: 833-628-3672
Email: kandyshira@yahoo.com
14. Esbrook Law PC Trade Payable $64,452
321 N Clark
Chicago, IL 60654
c/o Shanice Bland
Phone: 661-322-5064
Email: shanice.bland@wsbrook.com
15. Temsa North America Trade Payable $53,651
PO Box 748977
Atlanta, GA 30384-8977
c/o Mirta Lopez
Phone: 939-232-3849
Email: mirta.lopez@temsa.com
16. Delaney & AHLF Trade Payable $49,531
Diesel Service Inc
3901 Mercury Ave
Bakersfield, CA 933308
c/o Chris Jones
Phone: 661-322-5064
Email: chriss@dnaparts.com
17. Standard Retirement Trade Payable $41,528
Services Inc
1100 SW Sixth Ave
Portland, OR 97204
c/o Karen Graham
Phone: 800-783-3613
Email: Karen.Graham2@standard.com
18. ABC Bus Inc. Trade Payable $39,474
PO Box 856703
Minneapolis, MN 55485-6703
c/o Barb Ennis
Phone: 507-332-5769
Email: bennis@abc-companies.com
19. Master's Leasing & Rental Trade Payable $38,789
800 Quik Trip Way
Belton, MO 64012
c/o Emily Irwin
Phone: 816-831-3621
Email: eirwin@masterstransportation.com
20. HotelEngine Inc Trade Payable $34,878
1601 Wewatta St
Denver, CO 80202
c/o Accounts Receivable
Phone: 415-985-2400
Email: ar@hotelengine.com
21. Stinson LLP Trade Payable $33,946
1201 Walnut St.
Kansas City, MO 64106
c/o Tanya Kotzias
Phone: 816-691-3394
Email: tanya.kotzias-wilson@stinson.com
22. Samsara Trade Payable $30,312
PO Box 735462
Dallas, TX 75373
c/o Billing Support
Phone: 415-985-2400
Email: billingsupport@samsara.com
23. Sweet Grass Portables, LLC Trade Payable $28,950
PO Box 1305
Big Timber MT, 59011
c/o Blake Garton
Phone: 406-932-4433
Email: sweetgrassportables@gmail.com
24. UnitedHealthcare Benefit $28,128
P.O. Box 94017 Providers
Palatine, IL 60094-4017
c/o Luke Chutko
Phone: 412-439-4315
Email: luke_chutko@uhc.com
25. Kenworth of Louisiana, LLC Trade Payable $26,066
P.O Box 1450
Gray, LA 70359
c/o Anita F
Phone: 504-818-0100
Email: anitaf@kwlouisiana.com
26. CW Government Travel Inc Trade Payable $24,877
DBA CWT Sato
PO Box 100626
Arlington, VA 22210
c/o Ron Ivester
Phone: 804-674-1199
Email: rivester@cwtsato.com
27. ABC Companies Trade Payable $20,209
PO Box 856703
Minneapolis, MN 55485-6703
c/o Barb Ennis
Phone: 507-332-5769
Email: bennis@abc-companies.com
28. Building Material Unions Undetermined
and Construction
Drivers, Helpers and
Material Handlers,
Teamsters Local No. 341
1231 Banksville Rd, Floor 2
Pittsburgh, PA 15216
c/o Joe Podolak
Phone: 724-266-8341
Email: jpodolak723@gmail.com
29. AFL-CIO, Eastern States Unions Undetermined
Joint Board, Local 298
420 West Merrick Rd
Valley Stream, NY 11580
c/o Jim Vogt
Phone: 516-770-1375
Email: jvogt@esjb.org
30. AFL-CIO, ESJB Unions Undetermined
Amalgamated Local 1931
420 West Merrick Rd
Valley Stream, NY 11580
c/o Jim Vogt
Phone: 516-770-1375
Email: jvogt@esjb.org
ZACHRY HOLDINGS: Plan Exclusivity Period Extended to March 17
-------------------------------------------------------------
Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern
District of Texas extended Zachry Holdings, Inc. and its
affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to March 17 and May 16, 2025,
respectively.
As shared by Troubled Company Reporter, the Debtors explain that
the size and complexity of a company's chapter 11 case is perhaps
the most common justification for extending a debtor's exclusive
periods. There are 21 separate Debtor entities in these cases, with
thousands of creditors, approximately $281 million of funded debt,
and over $5.4 billion in operating revenues on a consolidated
basis. The Debtors are involved in numerous large construction
projects worth tens of billions of dollars and have existing
business relationships with thousands of customers and vendors
across the globe. These cases are unquestionably large and
complex.
The Debtors assert that they are not seeking an extension of the
Exclusive Periods to pressure or coerce creditors. The Debtors have
maintained an active dialogue with their creditors and are seeking
an extension of time to confirm the Plan or to propose a different
plan of reorganization that will maximize recoveries for the
Debtors' stakeholders. The additional time will allow the Debtors
to further engage with their creditors without the distraction that
could be created by competing plans.
The Debtors further assert that they have filed a viable Plan and
are in the process of soliciting and confirming that Plan. The
extension will give the Debtors the time required to confirm the
Plan without the distraction of competing plans. In addition, to
the extent that the Debtors cannot consummate the Plan, the
extension will give the Debtors the opportunity to propose and
confirm an alternative plan of reorganization without the potential
distraction of competing plans.
The Debtors note that despite the progress that the Debtors have
made thus far, unresolved contingencies still exist, including
securing the exit financing necessary to implement the Plan. The
Debtors require additional time to secure the best possible exit
financing terms and negotiate consensual modifications to the
existing senior credit facility.
Counsel to the Debtors:
Charles R. Koster, Esq.
WHITE & CASE LLP
609 Main Street, Suite 2900
Houston, Texas 77002
Tel: (713) 496-9700
Fax: (713) 496-9701
Email: charles.koster@whitecase.com
- and -
Bojan Guzina, Esq.
Andrew F. O'Neill, Esq.
RJ Szuba, Esq.
Barrett Lingle, Esq.
111 South Wacker Drive, Suite 5100
Chicago, Illinois 60606
Tel: (312) 881-5400
Email: bojan.guzina@whitecase.com
aoneill@whitecase.com
rj.szuba@whitecase.com
barrett.lingle@whitecase.com
About Zachry Holdings
Zachry Holdings, Inc., is the engineering, construction,
maintenance, turnaround and fabrication services offshoot of the
storied family-owned business that began as H.B. Zachry Company one
hundred years ago. The other offshoot, Zachry Construction, has
operated separately from Zachry Industrial since the two businesses
branched off from their common roots in 2008. The Zachry Group
provides engineering and construction services to clients in the
energy, chemicals, power, manufacturing, and industrial sectors
across North America.
None of the entities affiliated with Zachry Construction are
Debtors in the chapter 11 cases.
Zachry Holdings and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 24-90377) on May 21, 2024, with $1 billion to $10 billion in
assets and liabilities.
James R. Old, general counsel, signed the petitions.
Judge Marvin Isgur presides over the case.
The Debtors tapped White & Case LLP as general bankruptcy counsel;
Susman Godfrey L.L.P. and Hicks Thomas, LLP as special litigation
counsel; and Kurtzman Carson Consultants as notice & claims agent.
ZACHRY HOLDINGS: Reaches $7-Mil. Settlement in WARN Act Case
------------------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that Zachry
Holdings Inc., the bankrupt former general contractor for a major
liquefied natural gas project, will pay $7 million to settle a WARN
Act lawsuit filed after it laid off more than 4,000 workers.
According to the report, a Texas federal judge approved the
settlement on January 9, 2025, finding it fair to the plaintiffs.
About Zachry Holdings
Zachry Holdings, Inc., is the engineering, construction,
maintenance, turnaround and fabrication services offshoot of the
storied family-owned business that began as H.B. Zachry Company one
hundred years ago. The other offshoot, Zachry Construction, has
operated separately from Zachry Industrial since the two businesses
branched off from their common roots in 2008. The Zachry Group
provides engineering and construction services to clients in the
energy, chemicals, power, manufacturing, and industrial sectors
across North America.
None of the entities affiliated with Zachry Construction are
Debtors in the chapter 11 cases.
Zachry Holdings and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 24-90377) on May 21, 2024, with $1 billion to $10 billion in
assets and liabilities.
James R. Old, general counsel, signed the petitions.
Judge Marvin Isgur presides over the case.
The Debtors tapped White & Case LLP as general bankruptcy counsel;
Susman Godfrey L.L.P. and Hicks Thomas, LLP as special litigation
counsel; and Kurtzman Carson Consultants as notice & claims agent.
[*] Tiger Group to Auction 50+ Late-Model Trucks & Trailers Jan. 16
-------------------------------------------------------------------
A Tiger Group live webcast auction on Jan. 16 will feature more
than 50 new and late-model trucking assets--both tractor trucks
from well-known makers such as International, Peterbilt,
Freightliner, Paccar, Kenworth and Daimler, and reefer and dry van
trailers from CIMC, Great Dane, Hyundai, Utility and Wabash.
The bankruptcy auction comes as part of the complete liquidation of
a leading North American tractor truck and trailer dealer and
leasing company, with assets located in California, Georgia,
Indiana, Ohio, Texas, South Carolina and several other states.
The assets are predominantly late-model, ranging in age from 2021
to 2024, noted Chad Farrell, Managing Director, Tiger Commercial &
Industrial. "This court-approved sale is a rare occasion to acquire
well-maintained tractor trucks and trailers at liquidation values,"
Farrell said. "This is also a great opportunity for truckers,
trucking companies, dealers, and leasing companies across North
America to add to their fleets in early 2025."
The live webcast auction starts at 1 p.m. (CT) on Jan. 16 at
SoldTiger.com. Veteran auctioneer Wayne Hecht, Senior Director of
Operations for Tiger Commercial & Industrial, will take online bids
in a live simulcast from Tiger Group's studio.
It is the first in a series of sales. "All told, we have
approximately 110 tractor trucks and trailers to offer at auction,
so interested bidders should stay tuned for the next event,"
Farrell said.
Highlights of the January 16 sale include:
TRACTOR TRUCKS
(6) 2019-2024 Daimler Cascadia Truck Tractors
(8) 2015-2023 Freightliner Cascadia Truck Tractors
(3) 2022 & 2024 International LT625 & LT62F Truck Tractors
(5) 2017 & 2023 Kenworth T680 Truck Tractors
(6) 2018-2024 Paccar T680 & 579 Truck Tractors
(2) 2024 Peterbilt 579 Truck Tractors
TRAILERS
(4) 2023 CIMC Reefer Trailers
(4) 2008-2022 Great Dane Trailers
(1) 2021 Hyundai Dry Van Trailer
(9) 2002-2024 Utility Trailers
(1) 2008 Wabash Dry Van Trailer
For asset photos, descriptions, and other information, visit
https://soldtiger.com/sales/trucking-tractor-trucks-and-trailers/
Inspections are available by appointment on Wednesday, January 15,
in Toledo, Ohio; Fresno, California; and Mooresville, Indiana. To
arrange an inspection or obtain other information, email:
auctions@tigergroup.com or call (805) 497-4999.
Media Contacts: At Tiger Group, Maria Hoang, (805) 497-4999
388537@email4pr.com. At Jaffe Communications, Elisa Krantz, (908)
789-0700, 388537@email4pr.com.
[^] BOND PRICING: For the Week from January 6 to 10, 2024
---------------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
2U LLC TWOU 2.250 40.125 5/1/2025
99 Cents Only Stores LLC NDN 7.500 6.280 1/15/2026
99 Cents Only Stores LLC NDN 7.500 12.126 1/15/2026
99 Cents Only Stores LLC NDN 7.500 12.126 1/15/2026
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 46.147 2/15/2028
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 45.709 2/15/2028
Allen Media LLC / Allen
Media Co-Issuer Inc ALNMED 10.500 45.862 2/15/2028
Amyris Inc AMRS 1.500 1.021 11/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 0.750 8/15/2026
At Home Group Inc HOME 7.125 31.543 7/15/2029
At Home Group Inc HOME 7.125 31.543 7/15/2029
Audacy Capital LLC CBSR 6.750 3.467 3/31/2029
Audacy Capital LLC CBSR 6.500 3.714 5/1/2027
Audacy Capital LLC CBSR 6.750 3.467 3/31/2029
Avon Products Inc AVP 8.450 5.000 3/15/2043
Azul Investments LLP AZUBBZ 7.250 61.500 6/15/2026
Azul Investments LLP AZUBBZ 7.250 60.229 6/15/2026
BPZ Resources Inc BPZR 6.500 3.017 3/1/2049
Beasley Mezzanine Holdings BBGI 8.625 59.000 2/1/2026
Beasley Mezzanine Holdings BBGI 8.625 59.977 2/1/2026
Biora Therapeutics Inc BIOR 7.250 56.500 12/1/2025
BuzzFeed Inc BZFD 8.500 92.286 12/3/2026
Castle US Holding Corp CISN 9.500 45.970 2/15/2028
Castle US Holding Corp CISN 9.500 46.272 2/15/2028
CorEnergy Infrastructure
Trust Inc CORR 5.875 70.250 8/15/2025
Cornerstone Chemical Co LLC CRNRCH 10.250 50.500 9/1/2027
Cumulus Media New Holdings CUMINT 8.000 36.088 7/1/2029
Cumulus Media New Holdings CUMINT 8.000 35.090 7/1/2029
Curo Oldco LLC CURO 7.500 2.980 8/1/2028
Curo Oldco LLC CURO 7.500 9.002 8/1/2028
Curo Oldco LLC CURO 7.500 2.980 8/1/2028
Cutera Inc CUTR 2.250 9.000 6/1/2028
Cutera Inc CUTR 2.250 13.103 3/15/2026
Cutera Inc CUTR 4.000 8.550 6/1/2029
DIRECTV Holdings
LLC / DIRECTV
Financing Co Inc DTV 3.950 97.637 1/15/2025
Danimer Scientific Inc DNMR 3.250 0.625 12/15/2026
Energy Conversion Devices ENER 3.000 0.762 6/15/2013
Enviva Partners LP /
Enviva Partners
Finance Corp EVA 6.500 24.832 1/15/2026
Enviva Partners LP /
Enviva Partners
Finance Corp EVA 6.500 24.832 1/15/2026
Exela Intermediate LLC /
Exela Finance Inc EXLINT 11.500 29.860 7/15/2026
Exela Intermediate LLC /
Exela Finance Inc EXLINT 11.500 29.860 7/15/2026
Federal Farm Credit Banks
Funding Corp FFCB 1.070 96.683 1/13/2025
Federal Farm Credit Banks
Funding Corp FFCB 0.300 95.754 1/13/2025
Federal Home Loan Banks FHLB 0.650 99.404 1/14/2025
Federal Home Loan Banks FHLB 3.950 99.407 1/13/2025
Federal Home Loan Banks FHLB 1.050 99.406 1/14/2025
Federal Home Loan Banks FHLB 0.625 99.388 1/15/2025
Federal Home Loan
Mortgage Corp FHLMC 0.350 99.389 1/15/2025
Federal Home Loan
Mortgage Corp FHLMC 4.000 99.413 1/13/2025
Federal National
Mortgage Association FNMA 0.360 99.404 1/14/2025
GoTo Group Inc LOGM 5.500 39.556 5/1/2028
GoTo Group Inc LOGM 5.500 39.629 5/1/2028
Goodman Networks Inc GOODNT 8.000 5.000 5/11/2022
Goodman Networks Inc GOODNT 8.000 1.000 5/31/2022
H-Food Holdings
LLC / Hearthside
Finance Co Inc HEFOSO 8.500 3.250 6/1/2026
H-Food Holdings
LLC / Hearthside
Finance Co Inc HEFOSO 8.500 2.986 6/1/2026
Hallmark Financial
Services Inc HALL 6.250 20.082 8/15/2029
Homer City Generation LP HOMCTY 8.734 38.750 10/1/2026
Inotiv Inc NOTV 3.250 41.750 10/15/2027
Invacare Corp IVC 5.000 0.667 11/15/2024
JPMorgan Chase Bank NA JPM 2.000 87.893 9/10/2031
Karyopharm Therapeutics Inc KPTI 3.000 77.534 10/15/2025
Ligado Networks LLC NEWLSQ 15.500 37.500 11/1/2023
Ligado Networks LLC NEWLSQ 17.500 11.250 5/1/2024
Ligado Networks LLC NEWLSQ 15.500 38.000 11/1/2023
Ligado Networks LLC NEWLSQ 17.500 10.750 5/1/2024
Lightning eMotors Inc ZEVY 7.500 1.000 5/15/2024
Luminar Technologies Inc LAZR 1.250 48.650 12/15/2026
MBIA Insurance Corp MBI 16.178 3.276 1/15/2033
MBIA Insurance Corp MBI 16.178 3.276 1/15/2033
Mashantucket Western
Pequot Tribe MASHTU 7.350 50.490 7/1/2026
Morgan Stanley MS 1.800 75.683 8/27/2036
Origin Bank OBK 4.250 96.730 2/15/2030
PECF USS Intermediate
Holding III Corp UNSTSV 8.000 34.374 11/15/2029
PECF USS Intermediate
Holding III Corp UNSTSV 8.000 34.374 11/15/2029
Polar US Borrower
LLC / Schenectady
International Group Inc SIGRP 6.750 51.657 5/15/2026
Polar US Borrower
LLC / Schenectady
International Group Inc SIGRP 6.750 51.657 5/15/2026
Rackspace Technology
Global Inc RAX 5.375 26.500 12/1/2028
Rackspace Technology
Global Inc RAX 3.500 29.625 2/15/2028
Rackspace Technology
Global Inc RAX 5.375 28.249 12/1/2028
Rackspace Technology
Global Inc RAX 3.500 29.625 2/15/2028
Renco Metals Inc RENCO 11.500 24.875 7/1/2003
Rite Aid Corp RAD 7.700 1.700 2/15/2027
Rite Aid Corp RAD 6.875 3.559 12/15/2028
Rite Aid Corp RAD 6.875 3.559 12/15/2028
SBL Holdings Inc SECBEN 7.000 92.500 N/A
Senseonics Holdings Inc SENS 5.250 109.416 1/15/2025
Shutterfly LLC SFLY 8.500 48.856 10/1/2026
Shutterfly LLC SFLY 8.500 48.856 10/1/2026
Spanish Broadcasting
System Inc SBSAA 9.750 66.250 3/1/2026
Spanish Broadcasting
System Inc SBSAA 9.750 66.000 3/1/2026
Spirit AeroSystems Inc SPR 5.500 100.000 1/15/2025
Spirit AeroSystems Inc SPR 5.500 100.000 1/15/2025
Spirit Airlines Inc SAVE 1.000 34.250 5/15/2026
Spirit Airlines Inc SAVE 4.750 28.000 5/15/2025
TPI Composites Inc TPIC 5.250 23.750 3/15/2028
TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019
Toyota Motor Credit Corp TOYOTA 4.964 99.922 1/13/2025
Tricida Inc TCDA 3.500 8.125 5/15/2027
Veritone Inc VERI 1.750 44.750 11/15/2026
Virgin Galactic Holdings Inc SPCE 2.500 45.125 2/1/2027
Vitamin Oldco Holdings Inc GNC 1.500 0.474 8/15/2020
Voyager Aviation Holdings VAHLLC 8.500 9.345 5/9/2026
Voyager Aviation Holdings VAHLLC 8.500 9.345 5/9/2026
Voyager Aviation Holdings VAHLLC 8.500 9.345 5/9/2026
Vroom Inc VRM 0.750 54.500 7/1/2026
WW International Inc WW 4.500 17.923 4/15/2029
WW International Inc WW 4.500 18.639 4/15/2029
Wesco Aircraft Holdings Inc WAIR 9.000 41.961 11/15/2026
Wesco Aircraft Holdings Inc WAIR 8.500 8.000 11/15/2024
Wesco Aircraft Holdings Inc WAIR 13.125 1.102 11/15/2027
Wesco Aircraft Holdings Inc WAIR 9.000 41.961 11/15/2026
Wesco Aircraft Holdings Inc WAIR 8.500 7.974 11/15/2024
Wesco Aircraft Holdings Inc WAIR 13.125 1.102 11/15/2027
*********
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
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then-ending.
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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
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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.
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*** End of Transmission ***