/raid1/www/Hosts/bankrupt/TCR_Public/250205.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, February 5, 2025, Vol. 29, No. 35
Headlines
1001 WL LLC: Trustee Hires Graves Dougherty as Legal Counsel
1001 WL LLC: Trustee Seeks to Hire John Mosley as Accountant
1708 W. SEAGULL: Seeks to Hire Keery McCue as Bankruptcy Counsel
47-30 REALTY: Seeks to Hire Northgate as Real Estate Advisor
48 VIKING: Seeks to Hire Marcus Clegg Bals as Legal Counsel
500 CITY ISLAND: Taps Northgate Real Estate Group as Broker
5630 CHESTNUT: Seeks to Hire Everett Cook PC as Legal Counsel
ADVENTURE COAST: Hires Keck Legal LLC as Counsel
ALAMO BEER: Case Summary & 20 Largest Unsecured Creditors
ANGIE'S TRANSPORTATION: Gets OK to Use M&T's Cash Collateral
ASPIRA WOMEN'S: Board Appoints Buhle as CEO, Crawford VP of Finance
AVIANCA HOLDINGS: Owes $4 MM Plane Leases, Says 2nd Circuit
BEAR BRICK: Seeks to Hire Miceli Appraisers as Appraisers
BEAR BRICK: Taps Olney Bookkeeping and Accounting as Bookkeeper
BELLY RUBS: Seeks to Tap Campbell Flannery as Bankruptcy Counsel
BOOKS INC: Gets Interim OK to Use Cash Collateral
BORDER PROPERTIES: Voluntary Chapter 11 Case Summary
BOTW HOLDINGS: Hires Array US Inc as Litigation Support Servicer
BOXLIGHT CORP: Registers $50-Mil. Securities for Possible Offering
BROWN GENERAL: Court Extends Cash Collateral Access to March 29
BROWN GENERAL: Hires Helton Law Office as Special Counsel
BULLETPROOF DOG: Seeks to Tap Hill's Tax & Financial as Accountant
BUS-TEV LLC: Sec. 341(a) Meeting of Creditors on March 4
CALI NAILS 02: Seeks to Hire CPA & Associates Ltd as Accountant
CARNIVAL CORP: Fitch Rates Anticipated $2BB Unsec. Notes 'BB'
CCA CONSTRUCTION: Hires Verita Global as Administrative Advisor
CCA CONSTRUCTION: Seeks to Tap Cole Schotz as Bankruptcy Co-Counsel
CCA CONSTRUCTION: Seeks to Tap Debevoise & Plimpton as Co-Counsel
CCA CONSTRUCTION: Taps BDO Consulting Group as Financial Advisor
CENTRAL HOUSEWARES: Seeks Approval to Tap Swanson Sweet as Counsel
CHICKEN SHACK: Hires Bruner Wright as Legal Counsel
CLEARWATER ANALYTICS: S&P Assigns 'BB-' ICR, Outlook Stable
CLEM INVESTMENTS: Gets OK to Use Cash Collateral Until April 17
COMPAC USA: Seeks to Hire Pack Law as Bankruptcy Counsel
COMPAC USA: Taps Margulies Faith LLP as Special California Counsel
COVIA HOLDINGS: S&P Affirms 'B' ICR, Outlook Stable
DECKER HOME: U.S. Trustee Unable to Appoint Committee
DIAMOND COMIC: U.S. Trustee Appoints Creditors' Committee
DIAMOND ELITE: Voluntary Chapter 11 Case Summary
DIOCESE OF BURLINGTON: Comm. Taps Berkeley as Financial Advisor
DOUBLE K AH!THENTIC: Case Summary & 20 Top Unsecured Creditors
DOVETAIL DEVELOPMENT: Taps Remax Realty of Defiance as Broker
DRIVEHUB AUTO: Seeks Chapter 11 Bankruptcy in Florida
DVC3 LLC: Hires Jonathan Jackson Pledger as Special Counsel
E.L. SERVICES: Court Extends Cash Collateral Access to April 22
EASTSIDE DISTILLING: Launches Online Mortgage Biz
EL DORADO: Seeks to Sell Lots 1001–1014 in Auction
ESES LLC: Gets Interim OK to Obtain Post-Petition Loan
ESSEX TECHNOLOGY: Bargain Retailer Files Chapter 11 in Tennessee
ESSEX TECHNOLOGY: Case Summary & 20 Largest Unsecured Creditors
ETIENNE ESTATES: Seeks to Sell Brooklyn Property in Auction
EVEREST LENDING: Plan Exclusivity Period Extended to February 27
EYENOVIA INC: OKs Reverse Stock Split, Stock Plan Amendment
FALL CREEK: Court Extends Cash Collateral Access to May 28
FEENEY ENTERPRISES: Hires Brian K. McMahon P.A. as Attorney
FELTRIM BALMORAL: Gets Extension to Access Cash Collateral
FLAGSTAR BANK: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
FORTIS 333: Fitch Assigns 'B+' LongTerm IDR, Outlook Stable
FRANCHISE GROUP: Willkie's Selection as Bankruptcy Counsel Opposed
GMB TRANSPORT: Seeks to Hire Collar City Auctions as Appraiser
HARBORVIEW REHABILITATION: Hires Capozzi Adler as Special Counsel
HARBORVIEW REHABILITATION: Taps Cunningham Chernicoff as Counsel
HESS MIDSTREAM: S&P Rates $800MM Senior Unsecured Debt 'BB+'
HIGH HEELS: Seeks to Hire Joel A. Schechter as Legal Counsel
INDIVIDUALIZED ABA: Gets OK to Use Cash Collateral Until April 23
INNOVATE CORP: Whitefort Capital Holds 7.6% Equity Stake
JER INVESTORS: Seeks to Extend Plan Exclusivity to March 28
JPC LAND: Trustee Hires Bell Tower Commercial Real Estate as Broker
JVK OPERATIONS: Taps Silver Birch/BA Securities as Advisor
KAL FREIGHT: Committee Hires Province LLC as Financial Advisor
KAL FREIGHT: Committee Taps Brown Rudnick LLP as Co-Counsel
KAL FREIGHT: Committee Taps Kane Russell Coleman as Co-Counsel
KB3 2275: Seeks Cash Collateral Access Until Aug. 23
KINGDOM EMPOWERMENT: Taps Keller Williams Real Estate as Broker
LAVISH LIFESTYLES: Seeks to Hire Mark S. Roher as Legal Counsel
LEE INVESTMENT: Creditors to Get Proceeds From Liquidation
LEFEVER MATTSON: Court OKs Deal to Use Fannie Mae's Cash Collateral
LEFEVER MATTSON: Plan Exclusivity Period Extended to May 30
LEROUX CREEK: Taps RubinBrown LLP as Accounting Professional
LI-CYCLE HOLDINGS: Spring Creek, 2 Others Report Stakes
LIBERATED BRANDS: Case Summary & 30 Largest Unsecured Creditors
LIBERATED BRANDS: Files Chapter 11, to Close 100+ U.S. Locations
LIBERATED BRANDS: Files for Chapter 11 After ABG Pulls Licenses
LIBERATED BRANDS: Seeks Chapter 11 Protection in Delaware
LIBERATED BRANDS: To Sell De Minimis Assets for $1.5MM
LINX OF LAKE: Seeks Approval to Hire Davie Kaplan as Accountant
LITTLE DOLLAR: Seeks Subchapter V Bankruptcy in Georgia
M DESIGN: Gets Final OK to Use Cash Collateral
MALIA REALTY: Seeks to Hire Arrington Owoo as Special Counsel
MAXIMUS SUPPLY: Court OKs Continued Access to Cash Collateral
MERCURITY FINTECH: Wilfred Daye Joins as CSO and Chaince CEO
MESEARCH MEDIA: Updates Convertible Debt Claim Pay
MI LIQUIDATION: Trustee Taps Sanderson Law Firm as Counsel
MICHAEL J. WEISS: Unsecured Creditors to Get Nothing in Plan
MIKESELL TRADING: Unsecureds to Get 4.5 Cents on Dollar in Plan
NEOLPHARMA INC: Seeks to Hire RSM Puerto Rico as Accountant
NEWS DIRECT: U.S. Trustee Appoints Creditors' Committee
NORTH MISSISSIPPI: 45-Day Extension for Plan Filing Granted
NOVA CONSTRUCTORS: Sec. 341(a) Meeting of Creditors on February 27
O'RYAN RANCHES: Case Summary & Six Unsecured Creditors
ODYSSEY MARINE: President's Annual Base Salary Increased to $343K
ODYSSEY MARINE: Registers 2MM More Shares Under 2019 Stock Plan
ODYSSEY MARINE: Selling Stockholders Offer Up to 40.9MM Shares
OLIVIA J STUDIOS: Has Deal on Cash Collateral Access
OMEGA THERAPEUTICS: Enters RSA with Pioneering Medicines
OPEN ARMS: Unsecured Creditors to Split $126K over 3 Years
ORIGINAL MOWBRAY'S: Seeks to Hire Ordinary Course Professionals
ORTLEY BEACH: Voluntary Chapter 11 Case Summary
PARADOX ENTERPRISES: Gets OK to Use Cash Collateral Until Feb. 28
PARTY CITY: Seeks to Hire Paul Weiss Rifkind Wharton as Attorney
PARTY CITY: Seeks to Hire Porter Hedges LLP as Co-Counsel
PARTY CITY: Taps A&G Realty Partners as Real Estate Consultant
PARTY CITY: Taps Deborah Rieger-Paganis of AP Services as CRO
PARTY EMPORIUM: Seeks to Tap Lawson Accounting Group as Accountant
PHOENIX EXTEND: Seeks to Hire Keery McCue as Bankruptcy Counsel
PINEAPPLE EXPRESS: Minimal Cash, Deficit Raise Going Concern Doubt
PLASTIC SUPPLIERS: Comm. Hires Porzio Bromberg & Newman as Counsel
PLASTIC SUPPLIERS: Committee Taps RK Consultants as Accountant
PLAZA MARIACHI: Seeks to Extend Plan Exclusivity to April 28
PORT LOUIS: Seeks to Tap Anthony S. Maska as Special Counsel
POWER CITY: Gets Interim OK to Use Cash Collateral
POWER REIT: Inks ATM Sales Agreement With A.G.P.
PRESTIGE PROPERTY: Hires Rodriguez Espola as Accountant
PROFESSIONAL DIVERSITY: Acquires US$1.3M in AI Geometric Stock
PROMENADE NORTH: Case Summary & Three Unsecured Creditors
PROSPECT MEDICAL: To Sell Rhode Island Hospitals to Centurion
PROSPECT MEDICAL: U.S. Trustee Appoints Creditors' Committee
RAOCORE TECHNOLOGY: Evergreen Retainer Provisions Impermissible
REAVIS REHAB: Seeks Chapter 11 Bankruptcy in Texas
ROCKY MOUNTAIN: Hires Kevin S. Neiman PC as Bankruptcy Counsel
ROCKY MOUNTAIN: Taps Fox Law Corp as Bankruptcy Counsel
ROONEY AND BORDEN: Hires Oak Tree Law as Legal Counsel
ROTI RESTAURANT: To Sell 3 Minnesota Restaurants to Broadpeak
ROTM LOFTS: Seeks to Hire Dominion Management as Financial Advisor
RPM RESOURCES: Seeks to Hire Lorie Meadows as Expert Witness
RSTZ TRANSPORT: Sec. 341(a) Meeting of Creditors on March 3
RUSH INC: Case Summary & 20 Largest Unsecured Creditors
RYVYL INC: Executes Stock Repurchase and Note Repayment Deal
S & CD HOME: Seeks to Hire Lanigan & Lanigan as Bankruptcy Counsel
S&W SEED: Guidance on Sorghum Sales, Margins and Product Launches
SAN FRANCISCO CARE: Gets OK to Use Cash Collateral Until Feb. 14
SBB SHIPPING: Gets Extension to Access Cash Collateral
SBF VENTURES: Voluntary Chapter 11 Case Summary
SCANROCK OIL & GAS: Voluntary Chapter 11 Case Summary
SOFT PACKAGING: Seeks Approval to Hire Peter M. Hsu as Accountant
SOUL WELLNESS: Gets Six-Month Extension to Access Cash Collateral
SS INNOVATIONS: CEO Provides $17MM Financing Via Convertible Notes
STAR TRANSPORTATION: Taps Gregerson Rosow as Special Counsel
STEPHENS GARAGE: Seeks to Hire Patrick J. Gros CPA as Accountant
STONEPEAK NILE: S&P Rates New $500MM Senior Secured Notes 'BB'
TEAK DECK: Seeks to Hire Julianne Frank as Bankruptcy Counsel
TERRASCEND CORP: Announces Prelim. Fourth Quarter Revenue of $74.4M
TEXAS WHEEL: Case Summary & 20 Largest Unsecured Creditors
THREE SEAS: Gets Final OK to Use Cash Collateral
TIMELINE CONSTRUCTION: Court Denies Bid to Use Cash Collateral
TROLLMAN ENTERPRISES: U.S. Trustee Unable to Appoint Committee
VERDE RESOURCES: Sells La Belle Property to TAFleer for $350K
VERMILION ENERGY: Fitch Assigns BB- Rating on Sr. Unsecured Notes
VIA MIZNER: Seeks to Hire Greenberg Traurig as Special Counsel
WELCOME GROUP: Plan Exclusivity Period Extended to March 1
WILL NOT SELL: Hires Sagre Law Firm PA as Bankruptcy Counsel
WILSON CREEK: Seeks to Hire Stikeman Elliot as Canadian Counsel
WRESTLING COLLECTOR: Files Emergency Bid to Use Cash Collateral
WYNNE TRANSPORTATION: Taps Ordinary Course Professionals
XPLR INFRASTRUCTURE: Fitch Affirms 'BB+' IDR, Outlook Stable
ZACHRY HOLDINGS: Parent Company to Contribute $50M; Amends Plan
[] John Sobolewski Joins Latham & Watkins' New York Office
[] Nardello & Co. Expects Bankruptcy Filings to Rise in 2025
*********
1001 WL LLC: Trustee Hires Graves Dougherty as Legal Counsel
------------------------------------------------------------
John Patrick Lowe, the Trustee for 1001 WL, LLC seeks approval from
the U.S. Bankruptcy Court for the Western District of Texas to
employ Graves Dougherty Hearon & Moody, PC as counsel.
The firm's services include:
a. representing and advising the Trustee with respect to efforts
to liquidate assets of the bankruptcy estate;
b. performing his due diligence with respect to investigation
and prosecution of potential claims asserted by or against the
Estate;
c. taking investigation and pursuit of avoidance actions;
d. giving analysis of and objections to claim; and
e. providing of other matters that may arise during the
administration of the Estate.
The firm will be paid at these rates:
Brian T. Cumings $525 per hour
Attorneys $285 to $650 per hour
Paralegals/Administrative Staffs $20 to $250 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Brian T. Cumings, Esq., a partner at Graves Dougherty Hearon &
Moody, PC, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Brian T. Cumings, Esq.
Graves Dougherty Hearon & Moody, PC
401 Congress Avenue, Suite 2700
Austin, TX 78701
Tel: (512) 480-5626
Fax: (512) 536-9926
Email: bcumings@gdhm.com
About 1001 WL, LLC
1001 WL, LLC filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-10119) on
Feb. 6, 2024. In the petition signed by Drew Dennett, authorized
signatory, the Debtor disclosed up to $50 million in both assets
and liabilities.
Judge Shad Robinson oversees the case.
Stephen W. Sather, Esq., at Barron & Newburger PC represents the
Debtor as counsel.
1001 WL LLC: Trustee Seeks to Hire John Mosley as Accountant
------------------------------------------------------------
John Patrick Lowe, the trustee appointed in the Chapter 11 case of
1001 WL, LLC, seeks approval from the U.S. Bankruptcy Court for the
Western District of Texas to employ John Mosley, a certified public
accountant practicing in Austin, Texas as his accountant.
The accountant will advise the trustee regarding tax matters
affecting the estate and prepare all necessary income tax returns
for the estate.
The accountant will be compensated at an hourly rate of $200.
Mr. Mosley disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The accountant can be reached at:
John Mosley, CPA
3834 Spicewood Springs Rd.
Austin, TX 78759
Telephone: (512) 327-7777
About 1001 WL LLC
1001 WL, LLC filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-10119) on
Feb. 6, 2024. In the petition signed by Drew Dennett, authorized
signatory, the Debtor disclosed up to $50 million in both assets
and liabilities.
Judge Shad Robinson oversees the case.
Stephen W. Sather, Esq., at Barron & Newburger PC represents the
Debtor as counsel.
John Patrick Lowe was appointed as trustee in this Chapter 11 case.
He tapped John Mosley, CPA as his accountant.
1708 W. SEAGULL: Seeks to Hire Keery McCue as Bankruptcy Counsel
----------------------------------------------------------------
1708 W. Seagull, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Arizona to employ Keery McCue, PLLC as
counsel.
The firm will render these services:
(a) prepare pleadings and applications;
(b) conduct examinations incidental to administration;
(c) advise the Debtor of its rights, duties, and obligations
under Chapter 11 of the Bankruptcy Code;
(d) take any and all other necessary action incident to the
proper preservation and administration of this Chapter 11 estate;
and
(e) advise the Debtor in the formulation and presentation of a
plan pursuant to Chapter 11 of the Bankruptcy Code, the disclosure
statement and concerning any and all matters relating thereto.
The firm will be paid at an hourly rate between $185 to $475.
Martin McCue, Esq., an attorney at Kerry McCue, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Martin J. McCue, Esq.
Keery McCue, PLLC
6803 East Main Street, Suite 1116
Scottsdale, AZ 85251
Telephone: (480) 478-0709
Facsimile: (480) 478-0787
Email: mjm@keerymccue.com
About 1708 W. Seagull
1708 W. Seagull LLC is a single-asset real estate company based in
Chandler, Arizona.
1708 W. Seagull LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 25-00647) on January 24,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Eddward P. Ballinger Jr. handles the
case.
Martin J. McCue, Esq., at Keery McCue, PLLC serves as the Debtor's
counsel.
47-30 REALTY: Seeks to Hire Northgate as Real Estate Advisor
------------------------------------------------------------
47-30 Realty Associates LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ Northgate
Real Estate Group as real estate advisor.
The firm will market, sell and arrange refinancing for, the
Debtor's real property located at 47 East 30th Street, New York
10016.
The firm will be paid a commission of:
-- 3 percent of the gross purchase price of the Property, if the
Property is sold $4,999,999 or lower;
-- 5 percent of the gross purchase price of the Property if the
gross purchase price of the Property is $5,000,000 or higher.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Greg Corbin
Northgate Real Esate Group
1633 Broadway, 46th Floor
New York, NY 10019
Tel: (212) 369-4000
About 47-30 Realty Associates LLC
47-30 Realty is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
47-30 Realty Associates LLC in New York, NY, sought relief under
Chapter 11 of the Bankruptcy Code filed its voluntary petition for
Chapter 11 protection (Bankr. S.D.N.Y. Case No. 24-11635) on Sept.
24, 2024, listing as much as $1 million to $10 million in both
assets and liabilities. David Monian as member, signed the
petition.
Judge David S. Jones oversees the case.
KUCKER MARINO WINIARSKY & BITTENS, LLP, serves as the Debtor's
legal counsel.
48 VIKING: Seeks to Hire Marcus Clegg Bals as Legal Counsel
-----------------------------------------------------------
48 Viking Village, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Maine to employ Marcus Clegg Bals &
Rosenthal, P.A. as bankruptcy counsel.
The firm will provide these services:
a. analysis of the Debtor's financial situation and advice
and assistance to the Debtor in determining whether to file a
petition under Chapter 11 of the Code;
b. preparation and filing of the Debtor's Petition, Schedules,
Statement of Financial Affairs, amendments to the foregoing, and
all other documents and pleadings required by this Court, the Code,
the Federal Rules of Bankruptcy Procedure and/or the Local Rules of
this Court;
c. representation of the Debtor at the first meeting of
creditors and responses to individual creditor inquiries;
d. representation of the Debtor in connection with
debtor-in-possession financing, refinancing of existing secured
debt, and the disposition of any of its assets;
e. development of the Debtor's plan of reorganization,
analysis of the feasibility of any such plan, drafting, filing and
negotiation of the plan and confirmation of the plan;
f. review and evaluation of the Debtor's executory contracts,
and representation of the Debtor with respect to any motions to
assume or reject such contracts;
g. representation of the Debtor in connection with any
adversary proceedings or automatic stay litigation which may be
commenced in these proceedings;
h. analysis of the Debtor's cash flow and business operations,
advice to the Debtor regarding its responsibilities as a debtor in
possession and its post-petition financial operations, negotiation
of any borrowing and/or cash collateral stipulations which may be
required, furnishing of financial information to the United States
Trustee's Office and to any committee appointed pursuant to Section
1102 of the Code;
i. review and analysis of various claims of the Debtor's
creditors, secured, unsecured, and priority, and the treatment of
such claims;
j. representation of the Debtor regarding post-confirmation
operations and consummation of any plan of reorganization;
k. representation of and advice to the Debtor with respect to
general business law issues; and
l. general representation of the Debtor during these
bankruptcy proceedings.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm received a retainer of $6,046.50.
David C. Johnson, Esq., a partner at Marcus, Clegg, Bals &
Rosenthal, P.A., disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
David C. Johnson, Esq.
Marcus, Clegg, Bals & Rosenthal, P.A.
16 Middle Street, 5th Floor
Portland, ME 04101
Tel: (207) 828-8000
Email: bankruptcy@marcusclegg.com
About 48 Viking Village, LLC
48 Viking Village LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
48 Viking Village LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Me. Case No. 24-10283) on December 24,
2024. In the petition filed by Ben A. Kaley, as manager, the Debtor
reports estimated assets and liabilities between $1 million and $10
million each.
The Debtor is represented by David C. Johnson, Esq., at MARCUS
CLEGG.
500 CITY ISLAND: Taps Northgate Real Estate Group as Broker
-----------------------------------------------------------
500 City Island Ave., LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ Northgate
Real Estate Group as real estate broker.
The firm will market and auction the Debtor's commercial real
estate located at 500 City Island Ave, Bronx, NY 10464.
The firm will be paid a commission of 6 percent of the gross
purchase price.
Greg Corbin, president of Northgate Real Estate Group, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Greg Corbin
Northgate Real Estate Group
433 Fifth Avenue, 4th Floor
New York, NY 10016
Tel: (212) 419-8855
About 500 City Island Ave.
500 City Island Ave., LLC is engaged in activities related to real
estate. The Debtor is the fee simple owner of a single-story,
single-tenant commercial building valued at $2.95 million.
500 City Island Ave. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 24-11263) on July
22, 2024, listing $2,950,000 in total assets and $1,400,000 in
total liabilities. Norberto Rodriguez, managing member, signed the
petition.
Judge John P. Mastando, III oversees the case.
The Law Office of James J. Rufo represents the Debtor as legal
counsel.
5630 CHESTNUT: Seeks to Hire Everett Cook PC as Legal Counsel
-------------------------------------------------------------
5630 Chestnut OZB LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Pennsylvania to hire The Law Offices of
Everett Cook, P.C. as counsel.
The firm will render these services:
(a) provide the Debtor with legal services with respect to its
power and duties as Debtor-in-Possession in continuing the
management of its assets;
(b) prepare on behalf of Debtor necessary applications,
answers, orders, reports, and other legal papers;
(c) represent the Debtor in any matters involving contests
with secured or unsecured creditors;
(d) assist the Debtor in providing legal services required to
negotiate and prepare a plan of reorganization; and
(e) perform such other legal services for the Debtor as are
necessary and appropriate.
The firm will be paid at these rates:
Everett Cook, Esq. $350 per hour
Lauren Specter $150 per hour
As disclosed in the court filings, Everett Cook, P.C. represents no
interest adverse to the Debtor or the estate.
The firm can be reached through:
John Everett Cook, Esq.
The Law Offices of Everett Cook, P.C.
1605 N. Cedar Crest Blvd, Suite 520
Allentown, PA 18194
Phone: (610) 351-3566
Email: bankruptcy@everettcooklaw.com
About 5630 Chestnut OZB LLC
5630 Chestnut OZB LLC owns the property located at 5630 Chestnut
Street, Philadelphia, PA 19139, with a comparable sale value of $2
million.
5630 Chestnut OZB LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-10175) on January 15,
2025. In its petition, the Debtor reports total assets of
$2,000,000 and total liabilities of $53,486.
Honorable Bankruptcy Judge Patricia M. Mayer handles the case.
The Debtor is represented by John Everett Cook, Esq. at THE LAW
OFFICES OF EVERETT COOK PC.
ADVENTURE COAST: Hires Keck Legal LLC as Counsel
------------------------------------------------
Adventure Coast, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Georgia to employ Keck Legal, LLC as
its counsel.
The firm's services include:
a. giving the Debtor legal advice with respect to its powers
and duties as debtor-in-possession in the management of its
property;
b. preparing on behalf of the Debtor as debtor-in-possession
necessary schedules, applications, motions, answers, orders,
reports and other legal matters.
c. assisting in examination of the claims of creditors;
d. assisting with formulation and preparation of the
disclosure statement and plan of reorganization and with the
confirmation and consummation thereof;
e. performing all other legal services for Debtor as
debtor-in-possession that may be necessary.
The firm will be paid at these rates:
Benjamin R. Keck $465 per hour
Maysen Moorehead $265 per hour
Selah Owusu $125 per hour
Juan Montes $115 per hour
Miguel Quinonez $105 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Benjamin R. Keck, Esq., a partner at Law Firm of Keck Legal,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Benjamin R. Keck, Esq.
Law Firm of Keck Legal
2801 Buford Highway NE, Suite 115
Atlanta, GA 30329
Tel: (470) 826-6020
About Adventure Coast, LLC
Adventure Coast, LLC is an equipment rental service provider
specializing in trailers, restrooms, showers, generators, and other
production essentials for the film, broadcast, live events, private
events, and sports industries. With locations across major cities
like Atlanta, Nashville, and Orlando, the Company provides
nationwide service for everything from large-scale productions to
intimate events. Its extensive inventory includes talent trailers,
RVs, office trailers, shower trailers and heavy equipment.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N. D. Ga. Case No. 25-50682) on January 22,
2025. In the petition signed by Marcus Cooley, CEO, the Debtor
disclosed up to $10 million in both assets and liabilities.
Benjamin Keck, Esq., at Keck Legal, LLC, represents the Debtor as
legal counsel.
ALAMO BEER: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Alamo Beer Company, LLC
415 Burnet St.
San Antonio, TX 78202
Business Description: Alamo Beer Company is a beverage
manufacturer in San Antonio, Texas, that
brews the only beer to bear the ALAMO
name since Prohibition ended in 1919,
embracing a legacy of independence and
authenticity. The Company hosts a variety
of weekly events, including live music,
brewery tours, trivia, and karaoke. The
Company is a member of the Brewers
Association.
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 25-50245
Judge: Hon. Craig A. Gargotta
Debtor's Counsel: William B. Kingman, Esq.
LAW OFFICES OF WILLIAM B. KINGMAN
3511 Broadway
San Antonio, TX 78209
Tel: (210) 829-1199
Email: bkingman@kingmanlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by G. Eugene Simor 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/WZW3FZI/Alamo_Beer_Company_LLC__txwbke-25-50245__0001.0.pdf?mcid=tGE4TAMA
ANGIE'S TRANSPORTATION: Gets OK to Use M&T's Cash Collateral
------------------------------------------------------------
Angie's Transportation, LLC and STL Equipment Leasing Co., LLC
received final approval from the U.S. Bankruptcy Court for the
Eastern District of Missouri, Eastern Division, to use the cash
collateral of M&T Equipment Finance Corporation until March 16.
M&T is a secured creditor of Angie's Transportation, with valid
liens on Angie's assets, including 10 refrigerated trailers owned
by the company.
As protection for the use of its collateral, M&T will be granted
replacement liens on its collateral to the same extent and with the
same validity and priority as its pre-bankruptcy liens.
In addition, M&T will receive "adequate protection" payments,
including an initial payment of $4,500 and monthly payments of
$9,000 due on or before the fifth day of each month until further
order of the court or the effective date of a confirmed plan of
reorganization.
About Angie's Transportation
Angie's Transportation, LLC, a trucking company in St. Louis, Mo.,
and STL Equipment Leasing Co, LLC filed Chapter 11 petitions
(Bankr. E.D. Miss. Lead Case No. 24-44594) on December 16, 2024.
At the time of the filing, Angie's reported $1 million to $10
million in assets and $500,000 to $1 million in liabilities while
STL reported $1 million to $10 million in both assets and
liabilities.
Judge Brian C. Walsh handles the cases.
The Debtors are represented by Andrew Magdy, Esq., at Schmidt
Basch, LLC.
ASPIRA WOMEN'S: Board Appoints Buhle as CEO, Crawford VP of Finance
-------------------------------------------------------------------
Aspira Women's Health Inc. filed a Form 8-K with the Securities and
Exchange Commission to announce that, effective Jan. 28, 2025, the
Board of Directors appointed Michael Buhle as the Company's chief
executive officer, in addition to his current role as chief
commercial officer. Mr. Buhle will also serve as the Company's
principal executive officer.
Michael Buhle, age 59, has over 25 years of experience driving
commercial growth and new product launches in the diagnostics and
life science tools domains, working for start-up, scale-up, and
established businesses. Prior to joining Aspira, Mr. Buhle served
as chief commercial officer at Biovision Diagnostics and Vice
President of Sales, Americas for Congenica.
The Company's Interim CEO, Dr. Sandra Milligan, will remain the
Company's president.
In addition, on Jan. 28, 2025, the Board appointed James Crawford
as the Company's Vice President of Finance. Mr. Crawford will also
serve as the Company's principal financial officer and principal
accounting officer. Mr. Crawford, age 39, joined Aspira in 2021 as
Manager, Financial Planning & Analysis. He brings over a decade of
financial experience to the company in a variety of industries and
is dedicated to the Company's mission. James received his Bachelor
of Science degree at Bucknell University and his Master's degree at
the University of Connecticut.
There are no family relationships, as defined in Item 401 of
Regulation S-K, between the newly appointed officers and any of the
Company's directors or executive officers. Furthermore, as stated
in the 8-K, there are no agreements or arrangements between the
Officers and any other party regarding their appointments as
Officers of the Company. Messrs. Buhle and Crawford do not have
any direct or indirect material interest in any transaction or
proposed transaction that is required to be reported under Item
404(a) of Regulation S-K.
About Aspira Women's Health
Formerly known as Vermillion, Inc., Aspira Women's Health Inc. --
http://www.aspirawh.com-- is dedicated to the discovery,
development, and commercialization of noninvasive, AI-powered tests
to aid in the diagnosis of gynecologic diseases. The Company's
commercially available portfolio includes OvaWatch and the Ova1Plus
workflow, offered to clinicians as OvaSuite. Together, they
provide the only comprehensive portfolio of blood tests to aid in
the detection of ovarian cancer for the more than 1.2 million women
in the United States diagnosed with an adnexal mass each year.
OvaWatch is used to assess ovarian cancer risk for women with an
adnexal mass where their initial clinical assessment indicates the
mass is indeterminate or benign. With a negative predictive value
of 99%, OvaWatch can help physicians determine the appropriate care
pathway. The Ova1Plus workflow is designed to assess the risk of
ovarian malignancy in women planned for surgery and uses two
FDA-cleared tests, Ova1 as the primary test and Overa as a reflex
for Ova1 intermediate range results.
Boston, Massachusetts-based BDO USA, P.C., the Company's auditor
since 2012, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has suffered
recurring losses from operations and expects to continue to incur
substantial losses in the future, which raises substantial doubt
about its ability to continue as a going concern.
For the year ended Dec. 31, 2023, the Company incurred a net loss
of $16.7 million and used cash in operations of $15.9 million. As
of Sept. 30, 2024, the Company had $4.76 million in total assets,
$7.28 million in total liabilities, and a total stockholders'
deficit of $2.52 million.
AVIANCA HOLDINGS: Owes $4 MM Plane Leases, Says 2nd Circuit
-----------------------------------------------------------
Alex Wolf of Bloomberg Law reports that a federal appeals court has
ruled that Avianca Holdings SA remains liable for $4.3 million in
additional aircraft lease payments incurred during its bankruptcy.
On February 3, 2025, the U.S. Court of Appeals for the Second
Circuit upheld two lower court rulings, finding that Avianca failed
to address its debts to brokerage firms Burnham Sterling & Co. and
Babcock & Brown Securities LLC during its Chapter 11 proceedings.
About Avianca Holdings SA
Avianca -- https://aviancaholdings.com/ -- is the commercial brand
for the collection of passenger airlines and cargo airlines under
the umbrella company Avianca Holdings S.A. Avianca has been flying
uninterrupted for 100 years. With a fleet of 158 aircraft, Avianca
serves 76 destinations in 27 countries within the Americas and
Europe.
Avianca Holdings S.A. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
20-11133) on May 10, 2020. At the time of the filing, Debtors
disclosed $7,273,900,000 in assets and $7,268,700,000 in
liabilities.
Judge Martin Glenn oversees the cases.
The Debtors tapped Milbank LLP as general bankruptcy counsel;
Urdaneta, Velez, Pearl & Abdallah Abogados and Gomez-Pinzon
Abogados S.A.S. as restructuring counsel; Smith Gambrell and
Russell, LLP as aviation counsel; Seabury Securities LLC as
financial restructuring advisor and investment banker; FTI
Consulting, Inc. as financial restructuring advisor; and Kurtzman
Carson Consultants LLC as claims and noticing agent.
The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors in Debtors' bankruptcy cases on May 22, 2020. The
committee is represented by Willkie Farr & Gallagher, LLP.
BEAR BRICK: Seeks to Hire Miceli Appraisers as Appraisers
---------------------------------------------------------
Bear Brick Oven, Co. seeks approval from the U.S. Bankruptcy Court
for the District of Maryland to employ Miceli Appraisers and
Liquidators, Inc. as appraisers.
Miceli will value the Debtor's furniture, fixtures, equipment, and
other items of personal property.
The fee for appraiser to conduct an onsite appraisal will not
exceed $1,735 and will result in a report of both fair market value
and liquidation value. Carl Miceli, founder and president of Miceli
Appraisers will charge the rate of $250 per hour plus expenses with
a minimum of four hours for his time.
As disclosed in the court filings, Miceli Appraisers is a
"disinterested person" as that term is defined in Sec. 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Carl Miceli, ASA, CSA, CEA
Miceli Appraisers and Liquidators, Inc.
719 Holland Lane
Westminster, MD 21158
Tel: (410) 655-2169
About Bear Brick Oven Co.
Bear Brick Oven Co. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 24-20292) on December 6,
2024. In the petition signed by George Jarrell, president, the
Debtor disclosed $102,893 in assets and $1,136,040 in liabilities.
Judge Maria Ellena Chavez-Ruark oversees the case.
Matthew Abbott, Esq., at Wolff & Orenstein, LLC, represents the
Debtor as legal counsel.
BEAR BRICK: Taps Olney Bookkeeping and Accounting as Bookkeeper
---------------------------------------------------------------
Bear Brick Oven Co. seeks approval from the U.S. Bankruptcy Court
for the District of Maryland to employ the Olney Bookkeeping and
Accounting Services LLC as bookkeeper.
The firm will provide bookkeeping assistance to meet the Debtor's
reporting and business requirements.
The firm will charge $1,500 for its first month's services.
Thereafter, it will charge $400 per month for its services.
Moreover, it will keep time records for its services with time to
be billed at the rate of $95 per hour.
Caroline Strojny, a bookkeeper at Olney Bookkeeping and Accounting
Services, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Caroline Strojny
Olney Bookkeeping and Accounting Services LLC
Olney, MD 20830
Telephone: (301) 966-2705
Email: OlneyBAS@gmail.com
About Bear Brick Oven Co.
Bear Brick Oven Co. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 24-20292) on December 6,
2024, with $102,893 in assets and $1,136,040 in liabilities. George
Jarrell, president of Bear Brick Oven, signed the petition.
Judge Maria Ellena Chavez-Ruark oversees the case.
The Debtor tapped Matthew Abbott, Esq., at Wolff & Orenstein, LLC
as counsel and Caroline Strojny at Olney Bookkeeping and Accounting
Services LLC as bookkeeper.
BELLY RUBS: Seeks to Tap Campbell Flannery as Bankruptcy Counsel
----------------------------------------------------------------
Belly Rubs Pet Care, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Virginia to employ Campbell
Flannery, PC as counsel.
The firm will render these services:
(a) assist with schedules;
(b) represent the Debtor at creditors' meetings;
(c) advise the Debtor of its duties and responsibilities under
the Bankruptcy Code;
(d) assist in preparing monthly accounting forms;
(e) cashflow analysis and financial matters arising under the
Code;
(f) assist and advise the Debtor in determining whether to
assume or reject any executory contracts;
(g) draft documents to reflect any settlement(s) reached with
creditors;
(h) resolution of motions for relief from stay and adequate
protection;
(i) determine whether reorganization, dismissal or conversion
are in the best interests of the Debtor and its creditors;
(j) work with creditors' committee (if appointed) and other
counsel, if any;
(k) work any disclosure statement and plan of reorganization;
(l) negotiate transactions necessary for reorganization; and
(m) perform other matters that arise in the normal course of
administration of this estate in bankruptcy.
The firm's counsel will be paid at these hourly rates:
James Campbell, Attorney $535
Paralegal $195
In addition the firm will seek reimbursement to expenses incurred.
The firm received an initial retainer of $15,000 from the Debtor.
Mr. Campbell disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
James P. Campbell, Esq.
Campbell Flannery, PC
1602 Village Market Boulevard, Suite 225
Leesburg, VA 20175
Telephone: (703) 771-8344
Facsimile: (703) 777-1485
Email: jcampbell@campbellflannery.com
About Belly Rubs Pet Care LLC
Belly Rubs Pet Care LLC is operating from Ashburn, Virginia,
provides pet care services from its location at Junction Plaza.
Belly Rubs Pet Care LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Case No. 25-10145) on January 23,
2025. In its petition, the Debtor reports estimated assets between
$50,000 and $100,000 and estimated liabilities between $100,000 and
$500,000.
James P. Campbell, Esq., at Campbell Flannery, PC serves as the
Debtor's counsel.
BOOKS INC: Gets Interim OK to Use Cash Collateral
-------------------------------------------------
Books Inc. received interim approval from the U.S. Bankruptcy Court
for the Northern District of California, Oakland Division, to use
the cash collateral of its secured creditors.
The court authorized the company to use cash collateral in
accordance with its budget, with a variance of up to 10% per line
item calculated on a monthly basis.
The budget shows weekly cash disbursements ranging from $102,100 to
$435,630.
Books was ordered to make monthly payments of $4,097.43 to
Commercial Bank of California, $2,750 to Adrienne Kernan, and
$2,513 to the U.S. Small Business Administration.
As additional protection, the secured creditors were granted
replacement liens with the same priority as their pre-bankruptcy
liens.
The next hearing is scheduled for Feb. 19.
About Books Inc.
Books Inc. is the oldest independently owned bookstore in the
western U.S. and operates eleven brick-and-mortar stores in the Bay
Area. In addition to its physical locations, the Company runs an
online store, offering a mix of direct shipping and in-store pickup
for customers. The Company also fosters strong community
engagement, hosting hundreds of author events, book clubs, and
other activities each year.
Books Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-40087 on January 20,
2025, with $3,283,300 in assets and $5,161,574 in liabilities.
Andrew Perham, chief executive officer of Books Inc., signed the
petition.
Judge William J. Lafferty oversees the case.
The Debtor is represented by:
Stephen D. Finestone
Finestone Hayes LLP
Tel: 415-421-2624
Email: sfinestone@fhlawllp.com
Ryan A. Witthans
Finestone Hayes LLP
Tel: 415-481-5481
Email: rwitthans@fhlawllp.com
BORDER PROPERTIES: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Border Properties Group, LLC
12182 Coral Gate
El Paso TX 79936
Business Description: The Debtor is the fee simple owner of six
properties located in Ruidoso, New Mexico,
and El Paso, Texas, with a total current
value of $9.96 million.
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 25-30142
Judge: Hon. Christopher G Bradley
Debtor's Counsel: Corey W. Haugland, Esq.
JAMES & HAUGHLAND, P.C.
609 Montana Avenue
El Paso, TX 79902
Tel: (915) 532-3911
Fax: (915) 541-6443
E-mail: chaugland@jghpc.com
Total Assets: $10,000,000
Total Liabilities: $15,641,365
The petition was signed by Keith Boyd 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/Q6UXGHY/Border_Properties_Group_LLC__txwbke-25-30142__0001.0.pdf?mcid=tGE4TAMA
BOTW HOLDINGS: Hires Array US Inc as Litigation Support Servicer
----------------------------------------------------------------
Botw Holdings, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Wyoming to employ Array US,
Inc. as litigation support servicer.
The firm will assist in eDiscovery production for four separate
custodians and house production.
Array is to receive a retainer in the amount of $6,000.
As disclosed in the court filings, Array does not hold or represent
any interest adverse to the Debtors, including, but not limited to
Holdings, or their estates on the matters for which it is to be
employed and qualifies as a "disinterested person" for purposes of
Sec. 101(14).
The firm can be reached through:
Michael Lopez
Array US, Inc.
2995 Dawn Drive, Suite 106
Georgetown, TX 78628
About BOTW Holdings, LLC
BOTW Holdings, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Wyo. Case No.
24-20138) on April 19, 2024. The petition was signed by Jeff
Edwards, manager of Stryk Group Holdings, LLC. At the time of
filing, the Debtor estimated $1 million to $10 million in both
assets and liabilities.
Judge Cathleen D. Parker presides over the case.
Bradley T Hunsicker, Esq. at Markus Williams Young & Hunsicker LLC
represents the Debtor as counsel.
BOXLIGHT CORP: Registers $50-Mil. Securities for Possible Offering
------------------------------------------------------------------
Boxlight Corporation disclosed in a preliminary prospectus on Form
S-3 filed with the U.S. Securities and Exchange Commission that it
may offer and sell up to $50,000,000 in aggregate of securities --
Class A Common Stock, Class B Common, Preferred Stock, Warrants,
Debt Securities, Units -- from time to time in one or more
offerings.
According to Boxlight, "We may offer and sell these securities in
amounts, at prices and on terms determined at the time of offering.
The securities may be sold directly to purchasers or through
underwriters, dealers or agents. If underwriters, dealers or agents
are used to sell the securities, we will name them and describe
their compensation in a prospectus supplement."
As of January 24, 2025, the aggregate market value of the Company's
outstanding Class A common stock held by non-affiliates, or our
public float, was approximately $15,432,246 which amount is based
on 9,185,861 outstanding shares of Class A common stock held by
non-affiliates and a per share price of $1.68, the closing price
of the Company's Class A common stock January 6, 2025, which is the
highest closing sale price of our Class A common stock on The
Nasdaq Capital Market within the prior 60 days. Pursuant to General
Instruction I.B.6 of Form S-3, so long as its public float remains
below $75,000,000, in no event will we sell securities with a value
of more than one-third of its public float in any 12-month period
under the registration statement of which this prospectus is a
part. Boxlight has not sold any securities pursuant to General
Instruction I.B.6 to Form S-3 during the 12-calendar month period
that ends on and includes the date of this prospectus.
The Company's Class A common stock is listed on the Nasdaq Capital
Market under the symbol "BOXL." On January 23, 2025, the last
reported sale price of its Class A common stock on the Nasdaq
Capital Market was $1.00.
The Company may be reached at:
Dale W. Strang
Chief Executive Officer
Boxlight Corporation
2750 Premiere Parkway, Suite 900
Duluth, Georgia 30097
Phone: (678) 367-0809
A full-text copy of prospectus is available at:
https://tinyurl.com/mwhnprx4
About Boxlight Corporation
Boxlight Corporation (Nasdaq: BOXL) -- http://www.boxlight.com/--
is a provider of interactive technology solutions under its brands
Clevertouch, FrontRow, and Mimio. Boxlight aims to improve
engagement and communication in diverse business and education
environments. Boxlight develops, sells, and services its integrated
solution suite including interactive displays, collaboration
software, audio solutions, supporting accessories, and professional
services.
Atlanta, Georgia-based Forvis, LLP, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
March 14, 2024, citing that the Company has identified certain
conditions relating to its outstanding debt and Series B Preferred
Stock that are outside the control of the Company. In addition, the
Company has generated recent losses. These factors, among others,
raise substantial doubt regarding the Company's ability to continue
as a going concern.
As of September 30, 2024, Boxlight had $141.4 million in total
assets, $106.3 million in total liabilities, $28.5 million in total
mezzanine equity, and $6.5 million in total stockholders' equity.
BROWN GENERAL: Court Extends Cash Collateral Access to March 29
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Kentucky,
Lexington Division extended Brown General Contractors, LLC's
authority to use cash collateral from Feb. 1 to March 29.
The company's budget shows weekly costs ranging from $54,600.42 to
$60,824.08 during the interim period.
About Brown General Contractors
Brown General Contractors, LLC is the owner of real property
located at 255 Coleman Ln, Georgetown, Ky., valued at $959,000.
Brown General Contractors filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. Ky. Case No.
24-51313) on October 15, 2024, with total assets of $1,879,668 and
total liabilities of $2,628,660. Ryan Brown, a member of Brown
General Contractors, signed the petition.
Judge Douglas L. Lutz oversees the case.
The Debtor is represented by:
Michael B. Baker
Tel: 859-647-7777
Email: mbaker@bakerlawky.com
BROWN GENERAL: Hires Helton Law Office as Special Counsel
---------------------------------------------------------
Brown General Contractors, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Kentucky to employ
Helton Law Office as special counsel.
The firm will assist with the evaluation and possible objections to
various proofs of claims of creditors related to matters in which
either the firm was providing services pre-petition, or are similar
to matters the firm has handled in the past for the Debtor.
The firm will be paid at the rate $250 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The firm has a pre-petition claim against the Debtor in the amount
if $525.
Evan Rice, Esq., a partner at Helton Law Office, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Evan Rice, Esq.
Helton Law Office
432 West Main Street
Danville, KY 40422
Tel: (859) 236-1010
About Brown General Contractors, LLC
Brown General Contractors LLC is the owner of real property located
at 255 Coleman Ln, Georgetown Ky valued at $959,000.
Brown General Contractors LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ky. Case No.
24-51313) on October 15, 2024. In the petition filed by Ryan Brown,
as member, the Debtor reports total assets of $1,879,668 and total
liabilities of $2,628,660.
The Debtor is represented by:
Michael B. Baker, Esq.
THE BAKER FIRM, PLLC
301 W. Pike St.
Covington, KY 41011
Tel: (859) 647-7777
Fax: (859) 657-7124
Email: mbaker@bakerlawky.com
BULLETPROOF DOG: Seeks to Tap Hill's Tax & Financial as Accountant
------------------------------------------------------------------
Bulletproof Dog Training, LLC and Chelsea's Bed & Biscuits, LLC
seek approval from the U.S. Bankruptcy Court for the Middle
District of Florida to employ Hill's Tax & Financial Services, LLC
as accountant.
The firm will render these services:
(a) assist with payroll and accompanying withholding;
(b) prepare annual federal and state corporate income tax
returns;
(c) prepare the Debtors' monthly operating reports; and
(d) perform such other services the Debtors may require.
The firm will be paid at an hourly rate of $45, plus reimbursement
for expenses incurred.
Karla Epperson, a tax preparer at Hill's Tax & Financial Services,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Karla Epperson
Hill's Tax & Financial Services, LLC
4519 Weiner Lane
Cincinnati, OH 45244
Telephone: (513) 753-5859
About Bulletproof Dog Training
Bulletproof Dog Training LLC and Chelsea's Bed & Biscuits, LLC
sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
M.D. Fla. Case No. 24-01700) on June 14, 2024, listing under $1
million in both assets and liabilities.
The Debtor tapped Daniel R. Fogarty, Esq., at Stichter Riedel Blain
& Postler, PA as counsel and Karla Epperson at Hill's Tax &
Financial Services, LLC as accountant.
BUS-TEV LLC: Sec. 341(a) Meeting of Creditors on March 4
--------------------------------------------------------
On January 31, 2025, Bus-Tev LLC filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Southern District of New York.
According to court filing, the Debtor reports between $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 Section 341(a) to be held on March 4,
2025 at 02:30 PM at Office of UST (TELECONFERENCE ONLY).
About Bus-Tev LLC
Bus-Tev LLC is a merchant wholesaler of grocery and related
products.
Bus-Tev LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D.N.Y. Case No.: 25-10195) on January 31, 2025. In
its petition, the Debtor reports estimated assets and liabilities
between $1 million and $10 million .
Honorable Bankruptcy Judge Philip Bentley handles the case.
The Debtor is represented by Gary C. Fischoff, Esq., at BERGER,
FISCHOFF, SHUMER, WEXLER & GOODMAN, LLP, in Syosset, New York.
CALI NAILS 02: Seeks to Hire CPA & Associates Ltd as Accountant
---------------------------------------------------------------
Cali Nails 02, Inc. seeks approval from the U.S. Bankruptcy Court
for the Northern District of Indiana to employ Office of CPA &
Associates, Ltd. as accountant.
The firm's services include:
a. preparation and filing of all annual and quarterly tax
returns, both federal and state for the Debtor; and
b. consultation and advising the Debtor on tax implications,
as necessary.
The firm will charge a flat rate of $1,350 for tax preparation.
The other services, the firm will bill these rates:
Partners $250
Associate $175
As disclosed in the court filings, the accountant does not hold or
represent any interest adverse to the Debtor or the estate.
The firm can be reached through:
Jerry Tran, CPA
Office of CPA & Associates, LTD
80 East Penn Street,
Huntingdon, PA 16652
Tel: (814) 643-5200
About Cali Nails 02, Inc.
Cali Nails 02, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ind. Case No. 25-20001) on January 2,
2025, with up to $50,000 in assets and up to $1 million in
liabilities.
Judge James R. Ahler presides over the case.
Sheila A. Ramacci, Esq., represents the Debtor as legal counsel.
CARNIVAL CORP: Fitch Rates Anticipated $2BB Unsec. Notes 'BB'
-------------------------------------------------------------
Fitch Ratings has assigned a 'BB' with a Recovery Rating of 'RR4'
to Carnival Corporation's anticipated $2 billion senior unsecured
notes issuance due 2033. Carnival's Long-Term Issuer Default Rating
(IDR) remains 'BB' with a Positive Rating Outlook, reflecting no
material change in EBITDA leverage since the last review.
Fitch has calculated 2024 EBITDA leverage of 4.8x for Carnival
Corporation is slightly higher than the 'BB' midpoint, but this is
offset by the company's scale, high operating margins, strong
liquidity and its expectations of continued deleveraging. Potential
negatives include an economic downturn that reduces leisure demand
and higher fuel prices.
The Positive Outlook reflects Fitch's belief that strong booking
activity, which provides short-term visibility, and management's
commitment to reduce debt will continue to lead to stronger credit
metrics. Fitch would look to resolve the rating over a 12- to
18-month time frame from when it was assigned in August of 2024.
Key Rating Drivers
Refinancing Simplifies Capital Structure: Carnival Corporation's
planned issuance of $2 billion in senior unsecured notes is
expected to prepay its existing senior priority guaranteed
unsecured notes due 2028, simplifying its capital structure. This
refinancing move is strategically advantageous, as it eliminates
complex debt tied to specific assets, namely 12 ships.
This simplification aligns with Fitch's expectations for the
company to streamline its capital structure over time, improving
overall financial flexibility and contributing to an anticipated
$80 million in annual interest savings. By reducing reliance on
secured or priority-guaranteed financing, Carnival is better
positioned to achieve its long-term goal of investment-grade credit
metrics, supported by ongoing deleveraging and robust FCF
generation
Cruise Demand Remains Strong: Cruise companies continue to benefit
from the value proposition relative to resort vacations and a large
base of repeat customers. Carnival, along with Royal Caribbean and
Norwegian Cruise Lines, have all expressed publicly that bookings
are at record levels not just for 2024, but also 2025. The
long-term nature of cruise bookings provides strong visibility
given that cancellations are typically not material. Carnival
continues to increase guidance every quarter since the end of the
Covid-19 pandemic and is projecting net yields to increase by
approximately 4% (constant currency) in 2025.
Continued Debt Reduction: Carnival materially increased debt during
the pandemic to fund ship deliveries and address operating costs.
Debt has been reduced from $35.6 billion in 2022 to $28 billion,
and Fitch expects the combination of FCF growth and management's
commitment to investment-grade metrics will lead to rapid
improvement in credit metrics. The decline in new ship deliveries
over the next three years should lead to greater FCF growth and
debt reduction. Carnival also has approximately $1.1 billion of
convertible notes, which Fitch expects to be materially settled
through share exchanges.
Increased FCF Growth: Fitch expects the combination of EBITDA
growth, lower interest costs from debt reduction, and lower growth
capex will result in higher FCF through the forecast horizon. Fitch
estimates 2025 FCF to grow to $1.9 billion and materially
thereafter. Cruise companies historically have paid minimal taxes,
while debt reduction and refinancings should lower interest costs.
Carnival should also benefit from higher customer deposits given
the continued growth in bookings. Fitch does not anticipate any
material returns to shareholders until the company achieves
investment-grade status.
Leader in Cruise Industry: Carnival is the largest cruise operator
in the world with a presence across multiple brands. The company,
because of its brand acceptance and market leading capacity, has
top market share in North American and European markets, which
provide the majority of EBITDA contributions. The company's scale
has historically been a positive, but the COVID-19 shutdown turned
out to be more severe to Carnival given its high fixed-cost
structure and ship delivery at the time. Under a normal cruise
operating environment, Fitch considers Carnival's scale to be a
positive factor.
Moderate Industry Capacity Growth: Capacity growth is expected to
be somewhat muted over the next several years given the reduction
of new ship orders during the pandemic, as industry credit metrics
weakened. However, Fitch believes lower supply growth will be
supportive of net yield growth in the near term. Recent
announcements of new ship builds will mostly not affect the market
until the end of the decade, although capacity growth would still
be modest.
Favorable Industry Dynamics: The top players in the cruise line
industry benefit from high barriers to entry due to significant
ship capex spend, low global market penetration rates relative to
other leisure activities, mobile assets that allow companies to
move to other markets when existing markets are facing uncertain
economic or geopolitical issues, and favorable tax treatment given
their incorporation outside the U.S.
Derivation Summary
Carnival is the largest cruise ship operator in terms of berths and
passengers carried compared to Royal Caribbean Inc. (NR) and
Norwegian Cruise Line Holdings, Ltd. (NR). Carnival is also
compared to other high-'BB' and low-'BBB' leisure credits such as
Hyatt Hotels Corporation (BBB-/Stable) and Wyndham Hotels & Resorts
Inc. (BB+/Stable).
Carnival has materially greater scale and geographic
diversification than its comparables, although leverage is higher.
Fitch believes that Carnival's scale and FCF generation will result
in materially improved credit metrics that will be more indicative
of an investment-grade credit over the forecast horizon.
Key Assumptions
- Passengers carried expected to grow low single digits during the
forecast horizon. Occupancy expected to increase to 107% in 2026
and beyond;
- Net yields are expected to increase 4% in 2025 and low to
mid-single digits over the remainder of the forecast horizon;
- Adjusted cruise costs per available lower berth days, excluding
fuel, are forecast to increase low to mid-single digits over the
forecast horizon;
- Capex including new ship deliveries are expected to drop to $3.5
billion in 2025 and $3 billion in 2026;
- There are no assumptions for share repurchases, common dividends,
acquisitions or asset sales;
- FCF is expected to be applied to debt reduction through the
forecast horizon.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage sustaining above 5.5x;
- Economic or geopolitical event that lasts for an extended period
and results in a deterioration of the capital structure (i.e.,
increased debt, use of secured or priority guaranteed financing);
- A more aggressive financial policy that includes accelerates ship
building plans or increased shareholder allocations that would
allow for credit metrics to become vulnerable during a weaker
economic environment.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Sustainable positive FCF with application to debt payment;
- EBITDA leverage approaching 4.5x;
- (CFO-capex)/debt is greater than 10%.
Liquidity and Debt Structure
Rapidly Improving Liquidity: Carnival had $1.2 billion of cash and
$2.9 billion of borrowings available (subject to foreign exchange
movements) under its current revolving credit facility as of Nov.
30, 2024 that matures in August 2027. The company also has $3.4
billion of undrawn export credit facilities as of Aug. 31, 2024 to
fund ship deliveries planned through 2028. Fitch expects Carnival
to be FCF positive through the forecast horizon, which further
enhances liquidity.
Upcoming Maturity Wall: Carnival has material debt repayments due
over the next several years including $4.9 billion due in 2027 and
$6.7 billion due in 2028 pro forma for the refinancing. Fitch
believes a combination of debt reduction, potential conversion of
convertible debt exchanged into shares and refinancing
opportunities should allow the company to address its debt
repayment schedule.
Fitch expects new ship deliveries to decline over the forecast
horizon. The company will add one in 2025, none in 2026, and one in
both 2027 and 2028. Carnival recently announced three new ships,
but the first delivery is not until 2029.
Issuer Profile
Carnival Corporation and Carnival plc (together, Carnival) is the
largest global cruise company and among the largest leisure travel
companies, with a portfolio of world-class cruise lines: AIDA
Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland
America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess
Cruises and Seabourn.
Date of Relevant Committee
Jul 30, 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
----------- ------ --------
Carnival Corporation
senior unsecured LT BB New Rating RR4
CCA CONSTRUCTION: Hires Verita Global as Administrative Advisor
---------------------------------------------------------------
CCA Construction, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to employ Kurtzman Carson
Consultants, LLC, doing business as Verita Global, as
administrative advisor.
The firm will render these services:
(a) assist with, among other things, solicitation, balloting,
and tabulation of votes, and prepare any related reports, as
required in support of confirmation of a Chapter 11 plan, and in
connection with such services, process requests for documents from
parties in interest;
(b) prepare an official ballot certification and, if
necessary, testify in support of the ballot tabulation results;
(c) assist with the preparation of the Debtor's schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
(d) provide a confidential data room, if requested;
(e) manage and coordinate any distributions pursuant to a
Chapter 11 plan; and
(f) provide such other processing, solicitation, balloting,
and administrative services described in the Services Agreement.
The hourly rates of the firm's professionals are as follows:
Technology/Programming Consultant $29.75 - $80.75
Consultant/Senior Consultant/Director $55.25 - $204
Securities/Solicitation Consultant $208.25
Securities Director/Solicitation Lead $212.50
In addition, the firm will seek reimbursement for expenses
incurred.
Before the petition date, the Debtor provided Verita a retainer in
the amount of $25,000.
Evan Gershbein, an executive vice president at Verita Global,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Evan J. Gershbein
Verita Global
2335 Alaska Ave.
El Segundo, CA 90245
Telephone: (310) 823-9000
About CCA Construction
CCA Construction Inc., doing business as China Construction America
Inc., ProServ Shared Services, and Plaza Construction, was
established in 1993 as a Delaware corporation, and it is a direct
subsidiary of CSCEC Holding Company, Inc., also a Delaware
corporation. CSCEC Holding, CCA, and CCA's subsidiaries are
discrete pieces of CSCEC's broader business, which is operated by
more than 100 distinct entities located throughout the world, eight
of which are publicly traded. Together, the group of affiliated
entities makes up the largest construction company in the world,
operating in more than 100 countries and regions globally, covering
investment, development, construction engineering, survey and
design.
CCA Construction Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-22548) on December 22,
2024. In the petition filed by Yan Wei, chairman and chief
executive officer, the Debtor reports reports estimated assets
between $100 million and $500 million and estimated liabilities
between $1 billion and $10 billion.
Honorable Bankruptcy Judge Christine M. Gravelle handles the case.
The Debtor tapped M. Natasha Labovitz, Esq., Sidney P. Levinson,
Esq., Elie J. Worenklein, Esq., and Rory B. Heller, Esq., at
Debevoise & Plimpton LLP, in New York as general bankruptcy
counsel; Michael D. Sirota, Esq., Ryan T. Jareck, Esq., Warren A.
Usatine, Esq., and Felice R. Yudkin, Esq., at Cole Schotz PC in
Hackensack, New Jersey as bankruptcy co-counsel; and BDO Consulting
Group, LLC as financial advisor. Kurtzman Carson Consultants, LLC,
dba Verita Global, is the administrative advisor.
CCA CONSTRUCTION: Seeks to Tap Cole Schotz as Bankruptcy Co-Counsel
-------------------------------------------------------------------
CCA Construction, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to employ Cole Schotz, PC as
bankruptcy co-counsel.
The firm will render these services:
(a) advise the Debtor of its rights, powers, and duties in
continuing to operate and manage its assets and business;
(b) provide legal advice and services regarding local rules,
practices and procedures including Third Circuit law;
(c) provide certain services in connection with the
administration of the Chapter 11 case;
(d) advise the Debtor with respect to its reporting
obligations and duties;
(e) prepare pleadings, motions, and applications related to
bankruptcy administrative matters and any other matter that the
Debtor determines can be more efficiently performed by Cole
Schotz;
(f) review and comment on proposed drafts of other pleadings
to be filed with the court;
(g) appear in court and at any meeting with the United States
Trustee and any meeting of creditors;
(h) provide legal advice and services on any matter on which
Debevoise Plimpton LLP, bankruptcy co-counsel, may have a conflict
or as needed based on specialization;
(i) perform all other legal services for and on behalf of the
Debtor which may be necessary or appropriate in the administration
of this Chapter 11 case and fulfillment of its duties as a debtor
in possession; and
(j) respond to creditor and party-in-interest inquiries
directed to Cole Schotz.
The hourly rates of the firm's counsel and staff are as follows:
Michael Sirota, Member $1,575
Warren Usatine, Member $1,250
Felice Yudkin, Member $940
Ryan Jareck, Member $900
Andreas Milliaressis, Associate $650
Danielle Delehanty, Paralegal $400
Frances Pisano, Paralegal $400
In addition, the firm will seek reimbursement for expenses
incurred.
As of the petition date, Cole Schotz was holding, on behalf of the
Debtor, a retainer in the amount of $673,573.50 in connection with
this Chapter 11 case.
Mr. Sirota also provided the following in response to the request
for additional information set forth in Section D of the Revised
U.S. Trustee Guidelines:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing arrangements
for this engagement?
Answer: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Answer: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Answer: Cole Schotz did not represent the Debtor in the 12
months prepetition, other than for the pre-petition services
described in the application and this declaration.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Answer: Cole Schotz is currently formulating a budget and
staffing plan, which it will review with the Debtor. Cole Schotz
will file its budgets and staffing plans in connection with any and
all applications for interim and final compensation they file this
Chapter 11 case.
Mr. Sirota disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Michael D. Sirota, Esq.
Cole Schotz, PC
Court Plaza North, 25 Main Street
Hackensack, NJ 07601
Telephone: (201) 489-3000
Facsimile: (201) 489-1536
Email: msirota@coleschotz.com
About CCA Construction
CCA Construction Inc., doing business as China Construction America
Inc., ProServ Shared Services, and Plaza Construction, was
established in 1993 as a Delaware corporation, and it is a direct
subsidiary of CSCEC Holding Company, Inc., also a Delaware
corporation. CSCEC Holding, CCA, and CCA's subsidiaries are
discrete pieces of CSCEC's broader business, which is operated by
more than 100 distinct entities located throughout the world, eight
of which are publicly traded. Together, the group of affiliated
entities makes up the largest construction company in the world,
operating in more than 100 countries and regions globally, covering
investment, development, construction engineering, survey and
design.
CCA Construction Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-22548) on December 22,
2024. In the petition filed by Yan Wei, chairman and chief
executive officer, the Debtor reports reports estimated assets
between $100 million and $500 million and estimated liabilities
between $1 billion and $10 billion.
Honorable Bankruptcy Judge Christine M. Gravelle handles the case.
The Debtor tapped M. Natasha Labovitz, Esq., Sidney P. Levinson,
Esq., Elie J. Worenklein, Esq., and Rory B. Heller, Esq., at
Debevoise & Plimpton LLP, in New York as general bankruptcy
counsel; Michael D. Sirota, Esq., Ryan T. Jareck, Esq., Warren A.
Usatine, Esq., and Felice R. Yudkin, Esq., at Cole Schotz PC in
Hackensack, New Jersey as bankruptcy co-counsel; and BDO Consulting
Group, LLC as financial advisor. Kurtzman Carson Consultants, LLC,
dba Verita Global, is the administrative advisor.
CCA CONSTRUCTION: Seeks to Tap Debevoise & Plimpton as Co-Counsel
-----------------------------------------------------------------
CCA Construction, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to employ Debevoise & Plimpton
LLP as bankruptcy co-counsel.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties in
the continued management and operation of its business and
properties;
(b) advise and consult on the conduct of this Chapter 11
case;
(c) attend meetings and negotiate with representatives of the
creditors and other parties in interest;
(d) take all necessary action to protect and preserve the
Debtor's estate;
(e) prepare legal papers necessary or otherwise beneficial to
the administration of the Debtor's estate, other than pleadings
that it determines can be more efficiently handled by Cole Schotz
PC;
(f) represent the Debtor in connection with obtaining
postpetition financing;
(g) advise the Debtor in connection with any potential sale of
assets;
(h) appear before the court and any appellate courts to
represent the interests of the Debtor's estate before those
courts;
(i) consult the Debtor regarding tax matters;
(j) take any necessary action on behalf of the Debtor to
negotiate, prepare, and obtain approval of a Chapter 11 plan and
all documents related thereto; and
(k) perform all other necessary or otherwise beneficial legal
services for the Debtor in connection with the prosecution of this
Chapter 11 case.
The discounted hourly rates of the firm's counsel and staff are:
M. Natasha Labovitz, Partner, Restructuring $2,575
Sidney Levinson, Partner, Restructuring $2,575
Mark Goodman, Partner, Litigation $2,575
Erica Weisgerber, Partner Litigation $2,250
Morgan Davis, Partner, Litigation $1,950
Elie Worenklein, Counsel, Restructuring $1,800
Molly Mass, Associate Litigation $1,635
Rory Heller, Associate, Restructuring $1,430
Shefit Koboci, Associate, Restructuring $1,325
Benjamin Mishkin, Law Clerk, Restructuring $890
Junho Park, Case Manager $580
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an advance payment retainer:
October 16, 2024 $250,000
October 25, 2024 $2,000,000
December 19, 2024 $250,000
Ms. Labovitz also provided the following in response to the request
for additional information set forth in Section D of the Revised
U.S. Trustee Guidelines:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing arrangements
for this engagement?
Answer: Yes, as described in the declaration.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Answer: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Answer: As disclosed above, Debevoise represented the Debtor
prior to the petition date for both litigation and restructuring
matters. During that time period, Debevoise charged its standard
rates for restructuring services, subject to the customary annual
rate increases applicable to all clients. Debevoise had agreed to
apply a 10 percent discount for services under the Engagement
Letter and an additional threshold-based discount to reflect time
getting up to speed on restructuring matters. The postpetition
billing rates and the material financial terms of Debevoise's
employment are consistent with the 10 percent discount that was in
effect prior to the petition date.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Answer: The Debtor will be approving a prospective budget and
staffing plan for Debevoise's engagement for the postpetition
period as appropriate. In accordance with the U.S. Trustee
Guidelines, the budget may be amended as necessary to reflect
changed or unanticipated developments.
Ms. Labovitz disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
M. Natasha Labovitz, Esq.
Debevoise & Plimpton LLP
66 Hudson Boulevard
New York, NY 10001
Telephone: (212) 909-6000
Facsimile: (212) 909-6836
About CCA Construction
CCA Construction Inc., doing business as China Construction America
Inc., ProServ Shared Services, and Plaza Construction, was
established in 1993 as a Delaware corporation, and it is a direct
subsidiary of CSCEC Holding Company, Inc., also a Delaware
corporation. CSCEC Holding, CCA, and CCA's subsidiaries are
discrete pieces of CSCEC's broader business, which is operated by
more than 100 distinct entities located throughout the world, eight
of which are publicly traded. Together, the group of affiliated
entities makes up the largest construction company in the world,
operating in more than 100 countries and regions globally, covering
investment, development, construction engineering, survey and
design.
CCA Construction Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-22548) on December 22,
2024. In the petition filed by Yan Wei, chairman and chief
executive officer, the Debtor reports reports estimated assets
between $100 million and $500 million and estimated liabilities
between $1 billion and $10 billion.
Honorable Bankruptcy Judge Christine M. Gravelle handles the case.
The Debtor tapped M. Natasha Labovitz, Esq., Sidney P. Levinson,
Esq., Elie J. Worenklein, Esq., and Rory B. Heller, Esq., at
Debevoise & Plimpton LLP, in New York as general bankruptcy
counsel; Michael D. Sirota, Esq., Ryan T. Jareck, Esq., Warren A.
Usatine, Esq., and Felice R. Yudkin, Esq., at Cole Schotz PC in
Hackensack, New Jersey as bankruptcy co-counsel; and BDO Consulting
Group, LLC as financial advisor. Kurtzman Carson Consultants, LLC,
dba Verita Global, is the administrative advisor.
CCA CONSTRUCTION: Taps BDO Consulting Group as Financial Advisor
----------------------------------------------------------------
CCA Construction, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to employ BDO Consulting
Group, LLC as financial advisor.
The firm will provide these services:
(a) assist the Debtor in operational matters;
(b) prepare, monitor, and update the cash
collateral/Debtor-in-Possession (DIP) financing budget and other
financial and cash flow forecasts;
(c) assist in negotiating and implementing DIP financing
and/or cash collateral usage;
(d) provide support for motions filed as part of any Chapter
11 proceeding;
(e) assist the Debtor in complying with applicable Chapter 11
requirements and preparation of any necessary court filings;
(f) respond to information requests from stakeholders as
authorized by the Debtor;
(g) assist in the discussions and outreach from stakeholders
as authorized by the Debtor;
(h) manage the claims reconciliation process;
(i) evaluate potential claims held by the Debtor;
(j) assist in the development of a case resolution;
(k) assist in the preparation of information and analysis
necessary for the confirmation of a Chapter 11 plan of
reorganization;
(l) assist in reviewing and responding to issues arising from
or related to any existing and potential litigation;
(m) provide oral and written court testimony as necessary;
and
(n) assist the Debtor with other information and analysis as
requested.
The firm will be paid at these hourly rates:
Principals/Managing Director $725 - $1,150
Director $650 - $850
Manager $550 - $750
Seniors $375 - $625
Associates $175 - $375
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received these prepayments from the Debtor:
October 21, 2024 $100,000
October 25, 2024 $225,000
November 7, 2024 $60,000
November 25, 2024 $100,000
December 9, 2024 $150,000
Evan Blum, a managing director at BDO Consulting Group, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Evan Blum
BDO Consulting Group LLP
90 Woodbridge Center Dr., 4th Floor
Woodbridge, NJ 07095
Telephone: (732) 750-0900
Facsimile: (732) 750-1222
About CCA Construction
CCA Construction Inc., doing business as China Construction America
Inc., ProServ Shared Services, and Plaza Construction, was
established in 1993 as a Delaware corporation, and it is a direct
subsidiary of CSCEC Holding Company, Inc., also a Delaware
corporation. CSCEC Holding, CCA, and CCA's subsidiaries are
discrete pieces of CSCEC's broader business, which is operated by
more than 100 distinct entities located throughout the world, eight
of which are publicly traded. Together, the group of affiliated
entities makes up the largest construction company in the world,
operating in more than 100 countries and regions globally, covering
investment, development, construction engineering, survey and
design.
CCA Construction Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-22548) on December 22,
2024. In the petition filed by Yan Wei, chairman and chief
executive officer, the Debtor reports reports estimated assets
between $100 million and $500 million and estimated liabilities
between $1 billion and $10 billion.
Honorable Bankruptcy Judge Christine M. Gravelle handles the case.
The Debtor tapped M. Natasha Labovitz, Esq., Sidney P. Levinson,
Esq., Elie J. Worenklein, Esq., and Rory B. Heller, Esq., at
Debevoise & Plimpton LLP, in New York as general bankruptcy
counsel; Michael D. Sirota, Esq., Ryan T. Jareck, Esq., Warren A.
Usatine, Esq., and Felice R. Yudkin, Esq., at Cole Schotz PC in
Hackensack, New Jersey as bankruptcy co-counsel; and BDO Consulting
Group, LLC as financial advisor. Kurtzman Carson Consultants, LLC,
dba Verita Global, is the administrative advisor.
CENTRAL HOUSEWARES: Seeks Approval to Tap Swanson Sweet as Counsel
------------------------------------------------------------------
Central Housewares, Inc., doing business as The Pool People, seeks
approval from the U.S. Bankruptcy Court for the Eastern District of
Wisconsin to employ Swanson Sweet LLP as general bankruptcy
counsel.
The firm will provide these services:
(a) advise the Debtor with respect to its powers and duties;
(b) assist the Debtor with the commencement of
debtor-in-possession (DIP) operations;
(c) advise the Debtor and take all necessary action to protect
and preserve its estate;
(d) prepare bankruptcy schedules, statements of financial
affairs, and all related documents;
(e) assist with the preparation of a plan of reorganization
and the related negotiations and hearings;
(f) prepare pleadings in connection with the Chapter 11
cases;
(g) analyze executory contracts and unexpired leases, and the
potential assumptions, assignments, or rejections of such contracts
and leases;
(h) advise the Debtor in connection with any potential sale of
assets;
(i) appear at and be involved in various proceedings before
this court; and
(j) analyze claims and prosecute any meritorious claim
objections.
The firm's counsel and staff will be paid at these hourly rates:
Paul Swanson, Partner $675
Michael Jurkash, Associate $310
Heather Saladin, Paralegal $195
Sydney Haase, Legal Assistant $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a security retainer of $55,000 from the Debtor.
Mr. Swanson disclosed in court filings that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Paul Swanson, Esq.
Swanson Sweet LLP
107 Church Ave.
Oshkosh, WI 54901
Telephone: (920) 633-3397
Email: pswanson@swansonsweet.com
About Central Housewares
Central Housewares Inc. is a premier pool and spa retailer in
Wisconsin, offering a wide range of products from top brands like
Doughboy, Embassy, Radiant, and Cornelius. Known for their
durability and stylish designs, these brands provide customers with
high-quality options for above-ground pools and hot tubs. With
locations in Wausau, Stevens Point, Rhinelander, and Appleton,
customers can explore an extensive selection of pools and spas to
fit various preferences and budgets. The Company also carries a
luxurious collection of hot tubs from renowned manufacturers such
as Artesian Spas, Viking Spas, Aspen Spas, and Dream Maker Spas.
These hot tubs feature advanced hydrotherapy technologies,
energy-efficient systems, and customizable settings to deliver a
superior relaxation experience tailored to individual needs.
Central Housewares, Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Wis.Case No. 25-20408) on January 27,
2025. In its petition, the Debtor reports total assets of $945,900
and total liabilities of $2,598,182.
Honorable Bankruptcy Judge Katherine M. Perhach handles the case.
The Debtor is represented by Paul G. Swanson, Esq., at Swanson
Sweet LLP, in Milwaukee, Wisconsin.
CHICKEN SHACK: Hires Bruner Wright as Legal Counsel
---------------------------------------------------
Chicken Shack, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Florida to employ Bruner Wright, P.A.
to handle its Chapter 11 case.
The firm will be paid at these rates:
Robert Bruner, Attorney $450 per hour
Byron Wright, III, Attorney $400 per hour
Samantha Kelly, Attorney $375 per hour
Paralegal $175 per hour
The firm received a retainer of $10,000 from the Debtor.
Mr. Bruner disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Robert C. Bruner, Esq.
Bruner Wright, P.A.
2868 Remington Green Circle, Suite B
Tallahassee, FL 32308
Telephone: (850) 385-0342
Facsimile: (850) 270-2441
Email: rbruner@brunerwright.com
About Chicken Shack, LLC
Chicken Shack LLC operating as Krispy Krunchy Chicken and formerly
known as Fresh 2 Go Cafe LLC, is a restaurant business located in
Tallahassee, Florida.
Chicken Shack LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-40014) on January 14,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $100,000 and $500,000.
Honorable Bankruptcy Judge Karen K. Specie handles the case.
The Debtor is represented by Robert C. Bruner, Esq., at Bruner
Wright, P.A., in Tallahassee, Florida.
CLEARWATER ANALYTICS: S&P Assigns 'BB-' ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issuer credit rating to
Clearwater Analytics Holdings Inc. At the same time, S&P assigned
its 'BB-' issue-level and '3' recovery ratings to its new
first-lien senior secured facilities.
The stable outlook on Clearwater reflects its favorable prospects
to generate organic mid-teens revenue growth and improving
profitability over the next 12 months following the Enfusion
acquisition. This is supported by its high recurring revenue and
retention rates. These factors will likely enable the company to
maintain leverage less than 4x.
Clearwater Analytics, an accounting, reporting, and analytics
solutions provider, is raising new debt as part of its acquisition
of Enfusion Inc.
In support of the transaction Clearwater is issuing a $200 million
revolving credit facility and $800 million term loan B maturing in
2030 and 2032, respectively.
S&P said, "We believe Clearwater's differentiated platform and
strong revenue visibility will allow it to comfortably support its
new debt burden. Within the investment accounting, reporting, and
analytics space, Clearwater has positioned itself as the only
cloud-native provider with architecture designed to deliver more
granular and bespoke reporting capabilities. Clearwater is able to
do this through its security-centric (as opposed to
portfolio-centric) reporting approach that tracks and analyzes data
at the individual security level before aggregating it for
portfolio-level reporting. This provides customers with enhanced
accuracy, transparency, and customizability for their compliance
and decision-making needs, and has translated to very high
retention rates (above 95%) in the business. High retention rates
paired with a software-as-a-service (SaaS)-based revenue model
translates to strong revenue visibility for Clearwater. Despite
Clearwater's unique value proposition, our rating also reflects its
small scale relative to peers. Other players with competing
offerings in this space include SS&C Technologies Inc., Blackrock
Technologies, State Street Corp., and BNY Mellon, among others,
which have significant scale and financial resource advantages. We
also consider the company's relatively narrow scope of activities
and concentration to specific geographic regions and industries.
Compared with its more diversified peers, Clearwater operates only
one core business line, with sales heavily skewing toward U.S.
markets and financial services verticals. Individual customer
concentration is limited, however, and Clearwater's customer base
generally comprises larger, often blue-chip enterprises."
The Enfusion acquisition is highly complementary with Clearwater's
existing product suite. Clearwater's platform has historically
focused on solutions for middle- and back-office functions for
corporations and financial institutions. The acquisition of
Enfusion, however, expands and reinforces Clearwater's relatively
nascent front-office capabilities, transforming the company into a
full-stack solutions provider. The combined company will allow
customers to perform everything from portfolio rebalancing and
pre-trade compliance to core accounting and regulatory reporting in
a single, unified platform.
S&P said, "In addition to the platform enhancements mentioned
above, we also expect Clearwater to benefit from increased
geographic diversification following the acquisition considering
Enfusion's stronger international presence (about 40% of revenues
generated outside the U.S.). Furthermore, with about $30 million of
cost synergies identified as part of the transaction, we forecast
margin and cash flow improvement for the combined company starting
in 2026 as savings begin to be realized. One potential risk factor
we note, however, is Enfusion's greater exposure to hedge fund
customers, which tend to exhibit higher degrees of volatility.
Following the acquisition, we believe there may be modest headwinds
to retention rates, but ultimately, we still expect churn to remain
below 5%.
"We expect good profitability and low leverage to further support
Clearwater's new debt. Clearwater has consistently demonstrated an
ability to balance high revenue growth with healthy profitability.
Over the past four years, the company has grown revenues at a 22%
compound annual growth rating (CAGR) while maintaining S&P Global
Ratings-adjusted EBITDA margins at or above 27%. Despite some
near-term margin dilution expected in 2025 stemming from the
Enfusion acquisition, as cost savings are realized over the next
two and a half years, we expect EBITDA margins to rebound and reach
31% by 2026. EBITDA expansion is anticipated to drive prompt
deleveraging in the business, reducing S&P Global Ratings-adjusted
gross debt/EBITDA from about 4.2x at the end of fiscal 2025 (3.7x
on a 12-month pro forma basis) to about 3.0x by the end of fiscal
2026. We expect cash flow and liquidity to support the current
rating and outlook as well and forecast the combined company to
generate well above $100 million in free operating cash flow both
this year next while maintaining full availability under its $200
million revolving credit facility.
"The stable outlook on Clearwater reflects its favorable prospects
to generate organic mid-teens revenue growth and improving
profitability over the next 12 months following the Enfusion
acquisition. This is supported by its high recurring revenue and
retention rates. These factors will likely enable the company to
maintain leverage less than 4x.
"We could consider lowering our ratings on Clearwater if it
sustains S&P Global Ratings-adjusted debt to EBITDA above 4x."
This could occur if the company:
-- Experiences weaker-than-expected operating performance due
elevated competition, increased platform investments, or
macroeconomic headwinds.
-- Pursues debt-funded acquisitions or shareholder returns that
increase its S&P Global Ratings-adjusted debt to EBITDA above the
same level.
S&P could consider raising its ratings on Clearwater if:
-- It sustains and commits to leverage below 3x over the next 12
months, either through earnings growth, increased cash flow
generation, or debt repayment; and;
-- S&P believes the company has strengthened its financial profile
consistent with higher-rated peers. This could occur if it
continues to grow its topline, increases its EBITDA margins, and
generates higher free operating cash flow (FOCF).
CLEM INVESTMENTS: Gets OK to Use Cash Collateral Until April 17
---------------------------------------------------------------
Clem Investments I, LLC got the green light from the U.S.
Bankruptcy Court for the Middle District of Florida, Tampa
Division, to use cash collateral.
The order signed by Judge Roberta Colton approved the use of cash
collateral for the period from Dec. 20, 2024 to April 17, 2025.
Clem Investments I was authorized to pay its expenses from the cash
collateral, including monthly payments to the Subchapter V trustee
and the expenses set forth in its projected budget.
The company was also authorized to make monthly payments of $4,000
to Gulfside Bank starting this month as protection for the use of
its cash collateral.
The next hearing is scheduled for April 17.
Gulfside Bank is represented by:
Stephanie C. Lieb, Esq.
Trenam, Kemker, Scharf, Barkin, Frye, O’Neill & Mullis,
P.A.
101 East Kennedy Boulevard, Suite 2700
Tampa, Florida 33602
Tel: (813) 223-7474 | Fax: (813) 229-6553
Email: slieb@trenam.com
About Clem Investments I
Clem Investments I, LLC filed Chapter 11 petition (Bankr. M.D. Fla.
Case No. 24-07492) on December 20, 2024. In its petition, the
Debtor reported assets between $50,000 and $100,000 and liabilities
between $500,000 and $1 million.
Judge Roberta A. Colton handles the case.
The Debtor is represented by:
Buddy D Ford, Esq.
Buddy D. Ford, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: 813-877-4669
Email: buddy@tampaesq.com
All@tampaesq.com
COMPAC USA: Seeks to Hire Pack Law as Bankruptcy Counsel
--------------------------------------------------------
Compac USA Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of Florida to employ Pack Law as counsel.
The firm will assist the Debtor in complying with the various
provisions of the Bankruptcy Code, effectively and efficiently
negotiating with its creditors, and managing the various
restructuring aspects of the Chapter 11 Case, including the issues
concomitant with an asset sale pursuant to section 363 of the
Bankruptcy Code.
The firm will bill these hourly rates:
Joseph Pack, Esq. $750
Jessey Krehl, Esq. $500
Jorge A. Sanz, Esq. $410
Paralegal Support $250
Pack Law received a $50,000 retainer for the preparation and
execution of the Chapter 11 case.
Joseph Pack, Esq., a partner at Pack Law, P.A., disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Joseph A. Pack, Esq.
Pack Law, P.A.
51 NE 24th St., Suite 108
Miami, FL 33137
Tel: (305) 916-4500
Email: joe@packlaw.com
About Compac USA Inc.
Compac USA Inc. is a Florida entity incorporated in 2002 to market
and sell Compac stone products. The Debtor specializes in obsidian,
terrazzo, and quartz surfaces for architecture and design. The
Debtor maintains showrooms in Miami, Florida and New York, New
York.
Compac USA sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Fla. Case No. 24-23372) on December 21, 2024.
Francisco A. Sanchis-Brines, president of Compac USA, signed the
petition.
As of November 24, 2024, Compac USA reported total assets of
$5,342,926 and total liabilities of $739,872.
Judge Corali Lopez-Castro handles the case.
The Debtor is represented by Joseph A. Pack, Esq. at Pack Law.
COMPAC USA: Taps Margulies Faith LLP as Special California Counsel
------------------------------------------------------------------
Compac USA Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of Florida to employ Margulies Faith LLP as
special California counsel.
The firm will represent the Debtor in connection with matters
pending in the State of California.
The firm's current hourly rates are:
Partners $550 to $690
Associate Attorneys $465
Paralegals $235 to $275
As disclosed in the court filing, Margulies Faith does not hold any
interest adverse to the Debtor or its estate with respect to the
matters on which it is to be employed.
The firm can be reached through:
Jeremy W. Faith, Esq.
Margulies Faith LLP
16030 Ventura Blvd., Ste. 470
Encino, CA 91436
Telephone: (818) 705-2777
Email: Jeremy@MarguliesFaithLaw.com
About Compac USA Inc.
Compac USA Inc. is a Florida entity incorporated in 2002 to market
and sell Compac stone products. The Debtor specializes in obsidian,
terrazzo, and quartz surfaces for architecture and design. The
Debtor maintains showrooms in Miami, Florida and New York, New
York.
Compac USA sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Fla. Case No. 24-23372) on December 21, 2024.
Francisco A. Sanchis-Brines, president of Compac USA, signed the
petition.
As of November 24, 2024, Compac USA reported total assets of
$5,342,926 and total liabilities of $739,872.
Judge Corali Lopez-Castro handles the case.
The Debtor is represented by Joseph A. Pack, Esq. at Pack Law.
COVIA HOLDINGS: S&P Affirms 'B' ICR, Outlook Stable
---------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating and
removed all its ratings from CreditWatch, where S&P placed them
with negative implications on March 7, 2024.
S&P said, "We also assigned a 'B' issue-level rating and '3'
recovery rating to the proposed senior secured term loan.
"The stable outlook reflects our expectation that Covia will
sustain leverage of 4x-5x over the next 12 months as we anticipate
stable demand across its industrial end markets, possible pricing
environment tailwinds and for the company to undertake modest tuck
in acquisitions."
Debt burden remains relatively unchanged despite Energy segment
spin-off, but Covia's industrial-focused business will drive more
stable earnings. The company is refinancing its existing $806
million term loan due in 2026 and existing $135 million asset-based
lending (ABL) facility, with a proposed $850 million first-lien
term loan B due 2032 and a new $150 million revolver due 2030. S&P
expects Covia will sustain leverage of 4x-5x over the next couple
of years as it focuses on growing its industrial business following
the spin-off of its energy business last year, compared to 3x at
the end of 2023.
The affirmation reflects S&P's view that while there is now less
cushion in the credit metrics following the spin-off, it expects
leverage to be more stable. This is because the remaining
industrial business has very limited commodity price exposure;
sells higher-margin, value-added products; sells to less-price
sensitive customers; and should experience stable growth in line
with overall GDP growth.
While the separation removes a key end market and reduces the scale
of the company, the remaining business is higher margin. Following
the separation, we expect revenue to be just under $1 billion in
2025, compared to $1.5 billion as a combined entity in 2023.
Covia's industrial business provides highly specified and
customized products--some with limited substitutions--which drives
customer retention and the ability to pass on pricing increases.
The company also has decent end-market diversity serving a wide
range of industrial markets such as the construction, building
materials, consumer products, and packaging markets.
The energy business had experienced large swings in volumes,
prices, and earnings in the past, particularly from 2018 to 2020
when revenue declined almost 50% and leverage reached 9.6x and 7.4x
in 2019 and 2020, respectively. S&P said, "We expect leverage to
increase to about 4.5x in 2024, based on EBITDA of $205 million to
$210 million, following a $20 million-$30 million impact to EBITDA
from restructuring costs and other expenses related to the
separation. Debt to EBITDA should trend back toward 4x in 2025 as
key end markets, such as building products and chemical
applications, remain stable. We note, however, the recently upsized
revolver could fund tuck-in acquisitions as the company grows its
industrial business, which could result in incremental leverage. We
expect annual EBITDA of $230 million to $260 million over the next
2 years."
S&P said, "The stable outlook reflects our expectation that Covia
will sustain leverage of 4x-5x over the next 12 months as we
anticipate stable demand across its industrial end markets,
possible pricing environment tailwinds, and modest tuck in
acquisitions.
"We could lower the ratings if leverage sustains above 6x. This
could occur if steady earnings and cash flow are disrupted by lower
prices or lower volumes from overcapacity, or even higher costs
with no pricing offset because of its relative strength compared to
customers. We could also lower the rating if the company incurs
large debt-financed acquisition or shareholder returns."
S&P could raise its rating on Covia in the next 12 months if:
-- The company sustains adjusted leverage of 3x-4x;
-- Generates consistent free operating cash flow (FOCF) and EBITDA
margins, indicating more stable earnings following the separation
of the energy business; and
-- S&P anticipates the company's financial sponsor will adhere to
financial policies that result in lower sustained leverage.
DECKER HOME: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
The U.S. Trustee for Region 4 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Decker Home Repairs, LLC.
About Decker Home Repairs
Decker Home Repairs, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D.S.C. Case No.
24-03581) on Oct. 3, 2024, listing up to $1 million in assets and
up to $10 million in liabilities. Jamie E. Decker, sole member and
managing member of Decker Home Repairs, signed the petition.
Judge Helen E. Burris oversees the case.
The Cooper Law Firm represents the Debtor as bankruptcy counsel.
DIAMOND COMIC: U.S. Trustee Appoints Creditors' Committee
---------------------------------------------------------
The U.S. Trustee for Region 4 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Diamond
Comic Distributors, Inc. and its affiliates.
The committee members are:
1. Little Buddy Toys, LLC
270 East Palais Road
Anaheim, CA 92805
2. Titan Publishing Group Limited/Titan Comics
144 Southwark Street
London, SE1 0UP
United Kingdom
3. Simon & Schuster, LLC
100 Front Street
Riverside, N.J. 08075
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Diamond Comic Distributors
Founded in 1982, Diamond Comic Distributors Inc. offers a
multi-channel platform of publishing, marketing and fulfillment
services, coupled with an unparalleled global distribution network
for its retailers, publishers and vendors.
Diamond Comic Distributors and its affiliates filed Chapter 11
petitions (Bankr. D. Md. Case No. 25-10308) on January 14, 2025. At
the time of the filing, Diamond Comic Distributors reported between
$50 million and $100 million in both assets and liabilities.
Judge David E. Rice handles the case.
The Debtors tapped Saul Ewing, LLP as legal counsel; Getzler
Henrich & Associates, LLC as financial advisor; Raymond James &
Associates, Inc. as investment banker; and Stephenson Harwood, LLP
as U.K. counsel. Omni Agent Solutions is the Debtors' claims and
noticing agent and administrative agent.
DIAMOND ELITE: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Diamond Elite 6516 LLC
913 E 8th Street
Casa Grande, AZ 85122
Business Description: Diamond Elite 6516 is a single asset real
estate debtor, as defined in 11 U.S.C.
Section 101(51B).
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
District of Arizona
Case No.: 25-00905
Debtor's Counsel: Lamar Hawkins, Esq.
GUIDANT LAW PLC
402 East Southern Ave
Tempe, AZ 85282
Email: lamar@guidant.law
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Yehoishiah Rubin, manager of Diamond
Equity Manager, LLC, Manager of the Debtor.
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/CLAA3GQ/Diamond_Elite_6516_LLC__azbke-25-00905__0001.0.pdf?mcid=tGE4TAMA
DIOCESE OF BURLINGTON: Comm. Taps Berkeley as Financial Advisor
---------------------------------------------------------------
The official committee of unsecured creditors of Roman Catholic
Diocese of Burlington Vermont seeks approval from the U.S.
Bankruptcy Court for the District of Vermont to employ Berkeley
Research Group, LLC as its financial advisor.
The firm's services include:
a. assisting the Committee in investigating the assets,
liabilities and financial condition of the Debtor or the Debtor's
operations and the desirability of the continuance of any portion
of those operations, including a review of any donor restrictions
on the Debtor's assets;
b. assisting the Committee in the review of financial related
disclosures required by the Court and/or Bankruptcy Code, including
the Schedules of Assets and Liabilities, the Statement of Financial
Affairs, and Monthly Operating Reports;
c. analyzing the Debtor's accounting reports and financial
statements to assess the reasonableness of the Debtor's financial
disclosures;
d. providing forensic accounting and investigations with
respect to transfers of the Debtor's assets and recovery of
property of the estate;
e. assisting the Committee in evaluating the Debtor's
ownership interests of property alleged to be held in trust by the
Debtor for the benefit of third parties and/or property alleged to
be owned by non-debtor entities;
f. assisting the Committee in reviewing and evaluating any
proposed asset sales and/or and other asset dispositions;
g. assisting the Committee in the evaluation of the Debtors'
organizational structure, including its relationship with the
related Catholic non-debtor organizations and parishes that may
hold or have received property of the estate;
h. assisting the Committee in evaluating the Debtor's cash
management system, including unrestricted and restricted funds,
deposit and loan programs, and pooled income or investment funds;
i. assisting the Committee in the review of financial
information that the Debtor may distribute to creditors and others,
including, but not limited to, cash flow projections and budgets,
cash receipt and disbursement analyses, analyses of various asset
and liability accounts, and analyses of proposed transactions for
which Court approval is sought;
j. attendance at meetings and assistance in discussions with
the Debtor, the Committee, the U.S. Trustee, and other parties in
interest and professionals hired by the above-noted parties as
requested;
k. assisting in the review and/or preparation of information
and analyses necessary for the confirmation of a plan, or for the
objection to any plan filed in this Case which the Committee
opposes;
l. assisting the Committee in its evaluation of the Debtor's
solvency;
m. assisting the Committee with the evaluation and analysis of
claims, and on any litigation matters, including, but not limited
to, avoidance actions for fraudulent conveyances and preferential
transfers, and declaratory relief actions concerning the property
of the Debtor's estate;
n. analyzing the flow of funds in and out of accounts the
Debtor contends contain assets held in trust for others, to
determine whether the funds were commingled with non-trust funds
and lost their character as trust funds, under applicable legal and
accounting principles; and
o. assisting the Committee with respect to any adversary
proceedings that may be filed in the Debtor's Case and providing
such other services to the Committee as may be necessary in this
Case.
The firm will be paid at these rates:
Managing Directors $795 to $1,150 per hour
Associate Directors & Directors $535 to $795 per hour
Professional Staff $235 to $535 per hour
Support Staff $180 to $235 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Matthew Babcock, a managing director at Berkeley Research Group,
disclosed in a court filing that his firm is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Matthew K. Babcock
Berkeley Research Group, LLC
201 S. Main, Suite 450
Salt Lake City, UT 84111
Tel: (801) 321-7117
Email: mbabcock@thinkbrg.com
About Roman Catholic Diocese Of Burlington Vermont
Roman Catholic Diocese of Burlington sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Vt. Case No. 24-10205) on
Sept. 30, 2024. In the petition signed by Reverend John Joseph
McDermott, bishop, the Debtor disclosed up to $50 million in assets
and up to $10 million in liabilities.
Judge Heather Z. Cooper oversees the case.
The Debtor tapped James Baillie, Esq., at Fredrikson & Byron, P.A.
as bankruptcy counsel and Obuchowski Law Office as local counsel.
DOUBLE K AH!THENTIC: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: Double K Ah!thentic Pizza, LLC
Marco's Pizza
3517 Ponce De Leon Pass
Round Rock, TX 78665-2173
Business Description: The Debtor owns a pizza shop offering
authentic Italian quality pizza.
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 25-10159
Judge: Hon. Shad Robinson
Debtor's Counsel: Robert C. Lane, Esq.
THE LANE LAW FIRM
6200 Savoy Dr Ste 1150
Houston TX 77036-3369
Tel: (713) 595-8200
Fax: (713) 595-8201
E-mail: notifications@lanelaw.com
Total Assets: $150,848
Total Debts: $1,449,922
The petition was signed by Kenny Kendrick as owner.
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/I5RSFJQ/Double_K_Ahthentic_Pizza_LLC__txwbke-25-10159__0001.0.pdf?mcid=tGE4TAMA
DOVETAIL DEVELOPMENT: Taps Remax Realty of Defiance as Broker
-------------------------------------------------------------
Dovetail Development Ltd. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Ohio to employ Remax Realty of
Defiance, Inc. as realtor and broker.
The realtor will market and sell the Debtor's properties located
1488, 1489, 1481, 1483, 1475, 1477, 1467, 1469, 1461, 1463, 1455,
1457 Jackson Avenue, Defiance, Ohio.
The realtor will receive a commission equal to 3 percent of the
sales price.
As disclosed in the court filings, Remax Realty holds no interest
adverse to the Debtor or the estate.
The realtor can be reached through:
Matthew J. Joost
Remax Realty of Defiance, Inc.
1401 Jefferson Avenue
Defiance, OH 43512
Direct: (419) 784-3070
Mobile: (419) 438-0790
About Dovetail Development Ltd.
Dovetail Development Ltd. is a limited liability company formed in
1999.
Dovetail Development sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-30828) on May 1,
2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge John P. Gustafson presides over the case.
Steven L. Diller, Esq., at Diller and Rice, LLC, is the Debtor's
legal counsel.
DRIVEHUB AUTO: Seeks Chapter 11 Bankruptcy in Florida
-----------------------------------------------------
On January 27, 2025, DriveHub Auto 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 $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About DriveHub Auto Inc.
DriveHub Auto Inc. is a used car dealership located in Orlando, FL,
providing high-quality pre-owned vehicles to customers. With vast
connections within the dealer network, the Company is able to offer
a diverse selection of lease returns and trade-ins at competitive
prices.
DriveHub Auto Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00594) on January 27,
2025. In its petition, the Debtor reports .
Honorable Bankruptcy Judge Grace E. Robson handles the case.
The Debtor is represented by:
Daniel A. Velasquez, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
201 S. Orange Avenue, Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
E-mail: dvelasquez@lathamluna.com
DVC3 LLC: Hires Jonathan Jackson Pledger as Special Counsel
-----------------------------------------------------------
DVC3, LLC seeks approval from the U.S. Bankruptcy Court for the
Middle District of Florida to employ Jonathan Jackson Pledger, an
attorney in Franklin, Tennessee, as special counsel.
The professional services include correspondence and negotiations
with the homeowner and to file a lien foreclosure suit if
necessary.
The counsel's rates range from $250 to $300 per hour.
Mr. Pledger assured the court that he is a "disinterested person"
within the meaning of 11 U.S.C. 101(14).
The counsel can be reached through:
Jonathan Jackson Pledger, Esq.
219 3rd Ave N
Franklin, TN 37064-2504
Tel: (615) 479-3011
Fax: (615) 823-2937
Email: jjpledger@comcast.net
About DVC3, LLC
DVC3, LLC sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Fla. Case No. 24-03897) on December 23, 2024. In
the petition signed by Rebecca L. Vetter, manager, the Debtor
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Judge Jacob A. Brown oversees the case.
Bryan K. Mickler, Esq., at Law Offices of Mickler & Mickler, LLP,
represents the Debtor as bankruptcy counsel.
E.L. SERVICES: Court Extends Cash Collateral Access to April 22
---------------------------------------------------------------
E.L. Services, Inc. got the green light from the U.S. Bankruptcy
Court for the Northern District of California to use cash
collateral.
The order signed by Judge William Lafferty, III authorized the
company to use cash collateral on an interim basis until April 22
or until confirmation of a plan of reorganization, whichever is
earlier.
The next hearing is scheduled for April 23.
About E.L. Services Inc.
E.L. Services, Inc. is a landscape and maintenance company located
in Dublin, Calif.
E.L. Services filed Chapter 11 petition (Bankr. N.D. Calif. Case
No. 21-41087) on August 25, 2021, listing between $50,000 and
$100,000 in assets and between $1 million and $10 million in
liabilities. The petition was signed by Steven P. Baca, general
manager.
Judge William J. Lafferty oversees the case.
The Debtor is represented by:
Chris D. Kuhner, Esq.
Kornfield Nyberg Bendes Kuhner & Little
Tel: 510-763-1000
Email: c.kuhner@kornfieldlaw.com
EASTSIDE DISTILLING: Launches Online Mortgage Biz
-------------------------------------------------
Eastside Distilling, Inc. announced the launch of its online
mortgage business, Beeline Financial Holdings, Inc. In recognition
of this new strategic direction, the Company has adopted a new
trading symbol "BLNE" and will do business under the Beeline
Holdings name.
Beeline -- www.makeabeeline.com -- is a fintech mortgage lender
transforming the lengthy and painful home loan process into the
shortest, easiest path for millions of Americans. With Beeline,
customers can get approvals more reliably than traditional
pre-approvals, sometimes in as little as 15 minutes, and a rate
lock in one session directly from their mobile devices. Beeline
combines proprietary technology and AI with the personal touch of
their "Loan Guides" to simplify the daunting home loan process.
"This represents a transformative step for our company and our
shareholders. We strategically identified and acquired an
AI-driven mortgage platform developed by industry experts and
adopted a new name and symbol associated with the mortgage brand"
stated Geoffrey Gwin, Chief Executive Officer of the Company.
"The new name and symbol embody the vision and commitment at
Beeline to redefining the mortgage industry through AI-driven
innovation. This pivotal strategy underscores our dedication to
creating exceptional value for shareholders, customers, and
partners" added Nick Liuzza, Chief Executive Officer of Beeline.
About Eastside Distilling
Headquartered in Portland, Oregon, Eastside Distilling, Inc. has
been producing craft spirits in Portland, Oregon since 2008. The
Company is distinguished by its highly decorated product lineup
that includes Azunia Tequilas, Burnside Whiskeys, Hue-Hue Coffee
Rum, and Portland Potato Vodkas. All Eastside spirits are crafted
from natural ingredients for the highest quality and taste.
Eastside's Craft Canning + Printing subsidiary is one of the
Northwest's leading independent mobile canning, co-packing, and
digital can printing businesses.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's former
auditor, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company suffered a net loss from
operations and used cash in operations, which raises substantial
doubt about its ability to continue as a going concern.
Eastside Distilling incurred a net loss of $7.5 million during the
year ended December 31, 2023. As of June 30, 2024, Eastside
Distilling had $16,589,000 in total assets, $18,523,000 in total
liabilities, and $1,934,000 in total stockholders' deficit.
EL DORADO: Seeks to Sell Lots 1001–1014 in Auction
----------------------------------------------------
Dawn Ragan, the duly appointed chapter 11 Trustee for the
bankruptcy estates of Hugoton Operating Company, Inc., and El
Dorado Gas & Oil, Inc., and the Independent Manager of Bluestone
Natural Resources II - South Texas, LL, and the Independent
Director of World Aircraft, Inc., seeks permission from the U.S.
Bankruptcy Court for the Southern, District of Mississippi, in a
fourteenth motion to sell certain personal property in auction.
The Trustee has undertaken efforts to locate, identify and secure
property of the Debtors. The Trustee has identified extensive
amounts of equipment, machinery, and other personal property owned
by the Debtors and stored and housed in over 37 different locations
across several states and Canada.
The Trustee has retained Tiger Capital Group, LLC to assist with
the process of inventorying, cataloguing, and, where appropriate,
selling each item of equipment; a process that will take months as
property is sold and removed and lots cleared to provide access to
other property located in the rear.
The Trustee believes that the proposed sale terms and procedures
will facilitate an orderly and efficient sale of the Equipment. The
Equipment has value that can be realized through sales by auction,
and equally as important, the estates are incurring administrative
expenses to preserve and maintain the Equipment.
The Trustee proposes that the sales will be conducted by auction
and the equipment is described as Schedule Lots 1001–1014 located
at 1094 N. Highway 281 Bypass, Alice, TX 78332.
The Trustee seeks approval of certain marketing and sale procedures
to facilitate the auction of the Equipment.
The auction will also be advertised online and in print. Tiger
Capital intends to publish notice on its website, electronic mail
distribution lists, and print and regular mail campaigns. Tiger
Capital has advised the Trustee that it will send direct mailings
to targeted recipients, engage in telemarketing campaigns, and
engage a public relations company to assist with the promotion of
the auction.
The Equipment will be sold "as is", "where is", without any
representations of any kind or nature whatsoever, including as to
merchantability or fitness for a particular purpose, and without
warranty or agreement as to the condition of such personal
property. The Trustee will determine the highest or best bids for
the Equipment at the conclusion of the auction.
Following the auction, title to the Equipment will be transferred
to the successful bidder pursuant to bills of sale, invoices, or
other appropriate documentation.
Within 21 days of an auction, the Trustee may perform an interim
transfer of approximately 80%–90% of the net sale proceeds from
the Proceeds Account to the DIP Account and may hold back the
remaining 10%–20% of the net sale proceeds attributable from such
sale in the Proceeds Account for the purpose of paying any
remaining taxes due from the sale.
The Trustee believes that the foregoing marketing and auction
process will enable her to receive the maximum value for the
Equipment and should be approved.
About El Dorado Gas & Oil and Hugoton Operating
Company
Hugoton Operating Company, Inc. filed a voluntary Chapter 11
petition (Bankr. S.D. Miss. Case No. 23-51139) on Aug. 14, 2023. El
Dorado Gas & Oil, Inc., a company in Gulfport, Miss., filed Chapter
11 petition (Bankr. S.D. Miss. Case No. 23-51715) on Dec. 22, 2023,
with $500 million to $1 billion in assets and $50 million to $100
million in liabilities. Thomas L. Swarek, president, signed the
petition.
On Feb. 22, 2024, Bluestone Natural Resources II - South Texas, LLC
and World Aircraft, Inc. filed separate Chapter 11 petitions
(Bankr. S.D. Miss. Case Nos. 24-50223 and 24-50224).
On Jan. 12, 2024, the Court entered an order directing the
appointment of a Chapter 11 trustee for Hugoton. On Jan. 22, 2024,
the Court approved Dawn Ragan as the Chapter 11 trustee for
Hugoton.
On Jan. 31, 2024, the Court ordered the appointment of a Chapter 11
trustee for El Dorado. On Feb. 2, 2024, the Court approved Ms.
Ragan as Chapter 11 trustee for El Dorado.
No official committee of unsecured creditors has been established
in any of the Debtor cases.
Hugoton and El Dorado are both Arkansas corporations engaged in the
exploration, production, and development of crude oil and natural
gas properties. El Dorado is a lease holder and operator of oil and
gas wells covering about 4,000 net acres in South Texas. El Dorado
also owns a substantial amount of oil field equipment and owns real
estate in multiple locations and states. Hugoton also owns oil and
gas interests and operates wells in South Texas.
Hugoton is 100% owned by El Dorado and El Dorado is 100% owned by
Thomas Swarek. Bluestone is 100% owned by Hugoton. Bluestone owns
oil and gas interests operated by the EDGO Debtors. World Aircraft
is 100% owned by EDGO. World Aircraft owns various aircraft and
equipment assets.
Judge Katharine M Samson oversees the cases.
Patrick Sheehan, Esq., at Sheehan & Ramsey, PLLC, is Debtors
Bluestone Natural Resources II-South Texas, LLC and World Aircraft,
Inc.
R. Michael Bolen, Esq., at Hood & Bolen, PLLC; and Nancy Ribaudo,
Esq., Katherine Hopkins, Esq., and Joseph Austin, Esq., at Kelly
Hart & Hallman LLP, serve as counsel to Dawn Ragan, Chapter 11
Trustee for El Dorado Gas & Oil, Inc. and Hugoton Operating
Company, Inc.
ESES LLC: Gets Interim OK to Obtain Post-Petition Loan
------------------------------------------------------
ESES, LLC received interim approval from the U.S. Bankruptcy Court
for the Northern District of Texas, Fort Worth Division, to obtain
post-petition financing and use cash collateral.
The interim order signed by Judge Edward Morris authorized the
company to obtain up to $130,000 in post-petition financing from
Quasar Capital Partners, Inc. under the terms and conditions of
their pre-bankruptcy factoring agreement.
The order granted Quasar post-petition liens to secure the
obligations for advances made
under the factoring agreement during the period from Jan. 27 to
Feb. 4.
Meanwhile, Quasar was granted replacement liens to protect its
interest in the cash collateral and will receive payments from ESES
during the period from Jan. 27 to Feb. 4 pursuant to the factoring
agreement.
About ESES LLC
ESES, LLC, formerly known as EcoStream Energy Services, is a
Southlake, Texas-based provider of integrated fluid management
services for the oil and gas industry.
ESES filed Chapter 11 petition (Bankr. N.D. Texas Case No.
25-40038) on January 6, 2025, listing up to $50,000 in assets and
between $10 million and $50 million in liabilities.
Judge Edward L. Morris presides over the case.
The Debtor is represented by:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas TX 75202
Tel: 972-503-4033
Email: joyce@joycelindauer.com
ESSEX TECHNOLOGY: Bargain Retailer Files Chapter 11 in Tennessee
----------------------------------------------------------------
Dorothy Ma and Reshmi Basu of Bloomberg News report that Essex
Technology Group, the discount retailer behind Bargain Hunt, has
filed for Chapter 11 bankruptcy, reflecting mounting struggles for
budget-focused stores.
The company filed in Tennessee on Monday, February 3, reporting
assets between $10 million and $50 million and liabilities ranging
from $50 million to $100 million, according to court documents.
Bargain Hunt operates 91 stores across 10 states, selling a variety
of discounted goods, from heaters to popcorn. Marketed as an
"extreme value retail chain," it claims to offer prices 30-70%
lower than other retailers, the report states.
About Essex Technology Group
Essex Technology Group, LLC, doing business as Bargain Hunt,
operates as a retail company. The Company offers food, clothing,
shoes, accessories, electronics, appliances, sporting goods, home
decor, and other related products. Bargain Hunt serves customers in
the United States.
Essex Technology Group sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D.Tenn. Case No. 25-00452) on February 3,
2025. In its petition, the Debtor reports estimated assets between
$10 million and $50 million and estimated liabilities between $50
million and $100 million.
Honorable Bankruptcy Judge Nancy B. King handles the case.
The Debtor is represented by David W. Houston, IV, Esq., at BURR &
FORMAN LLP, in Atlanta, Georgia.
ESSEX TECHNOLOGY: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Essex Technology Group, LLC
d/b/a Bargain Hunt Stores
d/b/a Essex Wholesale Group
3815 Logistics Way
Antioch, TN 37013
Business Description: Essex Technology Group, operating under the
name Bargain Hunt, is an extreme value
retail chain offering significant discounts
of 30-70% on name-brand products across
various categories such food, beverage,
personal care, cleaning, pet, baby, bed,
bath, kitchen, home decor, furniture,
mattresses, apparel, shoes, accessories,
toys, electronics, sports and outdoors, lawn
and garden, and seasonal categories.
The company specializes in sourcing high-
quality closeouts, buyouts, overstocks, and
returns, providing customers with an ever-
changing assortment of products at lower
prices. Bargain Hunt operates 91 stores
across 10 states.
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
Middle District of Tennessee
Case No.: 25-00452
Judge: Hon. Nancy B King
Debtor's
Co-Counsel: David W. Houston, IV, Esq.
BURR & FORMAN, LLP
222 2nd Ave. S., Ste. 2000
Nashville, TN 37201
Tel: 615-724-3215
Email: dhouston@burr.com
Debtor's
General
Bankruptcy
Counsel: MCDONALD HOPKINS LLC
Debtor's
Investment
Banker: LIVINGSTONE PARTNERS LLC
Debtor's
CRO Services
Provider: Rob Hubbard
RIVERON MANAGEMENT SERVICES, LLC
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $50 million to $100 million
The petition was signed by Rob Hubbard as chief restructuring
officer.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/OQFZ4OY/Essex_Technology_Group_LLC__tnmbke-25-00452__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Amazon.com Trade $29,360,641
410 Terry Ave N
Seattle, WA, 98109
Tia Powell
Email: tashby@amazon.com
2. Averitt Freight $1,334,402
PO Box 102197
Atlanta, GA, 30368
Jodi Smith
Tel: 800-283-7488
Email: jodismith@averitt.com
3. One Step Up Ltd. Trade $1,316,829
1412 Broadway 3rd Floor
New York, NY, 10018
Dawn Fields
Tel: 212-398-1110
Email: dfields@onestepup.com
4. Geodis Logistics, LLC Freight $1,062,023
15604 Collections Center Drive
Chicago, IL, 60693
Camaren Humphrey-Davis
Tel: 615-542-9678
Email: Camaren.Humphrey-Davis@geodis.com
5. Lee Company Trade $510,797
PO Box 306053
Nashville, TN, 37230
Kim Crawford
Tel: 629-219-6048
Email: kim.crawford@leecompany.com
6. Target Corporation Trade $491,722
SDS-12-2372
Minneapolis, MN, 55486
Renata Monteiro
Email: Renata.Monteiro@target.com
7. Lewisco Holdings Trade $473,129
208 W. 30th Street #301
New York, NY, 10001
Courtney Arndt
Tel: 917-654-8761
Email: courtney@lewiscoholdings.com
8. True Value Company, LLC Trade $404,278
8600 W. Bryn Mawr Ave
Chicago, IL, 60631
Omar Valencia
Tel: 800-621-6025 Option 5
Email: Omar.Valencia@TrueValue.com
9. WIS International Trade $361,600
PO Box 77631
Detroit, MI, 48277
Mike Lemieuz
Tel: 703-984-9279
Email: mlemieux@wisintl.com
10. Manhattan Associates, Inc. Trade $331,519
PO Box 405696
Atlanta, TN, 30384
Bhavya Venkatesh
Tel: 770-955-7070
Email: bvenkatesh@manh.com
11. Consolidated Clothiers, Inc. Trade $309,431
4535 McEwen Road
Farmers Branch, TX, 75244
Mary Roberts
Tel: 214-678-0714
Email: mroberts@consolidatedclothiers.com
12. CY Deals LLC Trade $237,858
PO Box 100895
Atlanta, GA, 30384
Magdalena Snow
Tel: 212-481-8001
Email: msnow@genevafactorsltd.com
13. Northpoint Trading Inc. Trade $229,119
347 5th Ave Ste 201
New York, NY, 10016
Khin Aye
Tel: 212-481-8001
Email: Khin@nptrd.com
14. Diamond Plastics, LLC Trade $224,427
720 Northern Road
Mount Juliet, TN, 37122
Rachel Piercy
Tel: 615-449-0886
Email: rpiercey91@yahoo.com
15. Dematic Corp. Trade $222,810
507 Plymouth Ave NE
Grand Rapids, MI, 49505
Noah King
Email: na.arinvoices@dematic.com
16. Sunnest Services LLC Trade $207,293
PO Box 16484
Irvine, CA, 92683
Kelly Idol
Tel: 800-628-1484
Email: ardropship@sunjoygroup.com
17. iApparel Trade $196,852
463 7th Ave Rm 601
New York, NY, 10018
Dolly Somir
Tel: 212-695-6343
Email: Dolly@iapparelny.com
18. MAG Apparel USA, Inc. Trade $181,154
PO Box 88926
Chicago, IL, 60695
Nancy Perez
Tel: 212-600-5657
Email: NPerez@rosenthalinc.com
19. Volt Management Corp. Trade $177,153
PO Box 679307
Dallas, TX, 75267-9307
Arathi Muppuri
Email: amuppuri@volt.com
20. All-State Brokerage Trade $176,143
4663 Executive Dr Ste 12
Columbus, OH, 43220-3627
Jim Szabo
Tel: 615-451-2333
Email: accounting@asbteam.com
ETIENNE ESTATES: Seeks to Sell Brooklyn Property in Auction
-----------------------------------------------------------
Etienne Estates At Washington LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York, to sell
residential property located at 301 Washington Avenue, Brooklyn, NY
in auction, free and clear of all liens.
JJAM Capital LLC holds a mortgage lien of the property.
The Debtor retains Northgate Realty Group as real estate broker to
market and sell the Property.
The principal of the Debtor, Johanna Francis, indicates that she is
in talks for a contribution and/or private sale of the Property
with a lease back and option to repurchase, which will yield a
price sufficient to pay all non-insider debt in full, including
JJAM.
The Debtor reserves the right to pursue such a contribution and/or
private sale as an alternative to a refinancing based upon the
existing climate of refinancing not being readily available to
owner occupied properties.
The Debtor seeks to set the marketing and auction sale by obtaining
approval of Bid Procedures for use in marketing the Property and
conducting the ultimate sale of the Property at auction in
conjunction with a confirmed plan of reorganization in the event
that there is no cure and reinstatement or refinancing.
Prior to bankruptcy, JJAM obtained a judgment of foreclosure by
summary judgement in the total sum of $2,448,898.26 as of December
1, 2023, which is subject to a pending appeal, and a motion for a
stay pending appeal that remains pending before the Appellate
Division.
While the Debtor’s preference is to resolve JJAM’s claim by
effectuating a cure and reinstatement with a refinancing as a
back-up, the Debtor's Reorganization Plan contains a clearly
delineated toggle feature in the event that the Payment Options are
not completed and closed on or before April 2, 2025. Importantly,
upon the expiration of failing the Payment Option Deadline, the
Plan provides that it shall toggle to an auction sale to be held on
April 3, 2025.
The Debtor submits that that the proposed marketing of the Property
and the Bid Procedures are reasonable and will provide parties with
sufficient time and information to submit competitive bids for the
Property.
The Debtor proposes the following timeline for the sale process:
(a) Bid Deadline: March 28, 2025
(b) Auction Date: April 3, 2025
(c) Sale Hearing to be part of the Confirmation Hearing:
Approximately fourteen (14) days after the Bid Deadline, subject to
the Court’s calendar availability;
(d) Closing Deadline: as soon after the Bankruptcy Court approves
the sale as part of the Confirmation Order as commercially
practicable, but no later than 15 days after the Bankruptcy Court
approves the sale.
To participate in the bidding process or otherwise be considered
for any purpose under the Sale Terms, a Potential Bidder must
deliver the Qualification Documents to Goldberg Weprin as counsel
to the Debtor. JJAM is deemed a Qualified Bidder.
Each Qualified Bidder must transmit their bid via email so as to be
actually received by counsel to the Debtor on or before March 28,
2025 at 5:00 p.m. (prevailing Eastern Time).
All bids must be reasonably likely to be consummated, if selected
as the Successful Bid, by the Closing Deadline.
The Debtor shall conduct an Auction with respect to the Property
telephonically or by videoconference. The Auction will commence at
12:00 p.m. (prevailing Eastern Time) on April 3, 2025.
Bidding at the Auction shall begin with the Initial Bid Amount and
subsequently continue in minimum increments of $10,000.
The Debtor shall present the results of the Auction or otherwise
present the Successful Bidder to the Bankruptcy Court at the Plan
Confirmation Hearing.
All creditors of the Debtor will receive notice of the Motion and
will have the opportunity to be heard on any matter relating to the
proposed sale and bidding procedures.
About Etienne Estates At Washington LLC
Etienne Estates at Washington LLC holds title to real property
located at 301 Washington Avenue, Brooklyn, New York valued at $6.3
million.
Etienne Estates at Washington LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code IBankr. E.D.N.Y. Case No. 24-43203) on
July 31, 2024. In the petition filed by Johanna M.L. Francis,
manager, the Debtor disclosed total assets of $6,800,084 and total
liabilities of $2,655,845.
Honorable Bankruptcy Judge Nancy Hershey Lord handles the case.
Kevin J. Nash, Esq., at Goldberg Weprin Finkel Goldstein LLP,
serves as the Debtor's counsel.
EVEREST LENDING: Plan Exclusivity Period Extended to February 27
----------------------------------------------------------------
Judge Jeffery A. Deller of the U.S. Bankruptcy Court for the
Western District of Pennsylvania extended Everest Lending Group,
LLC's exclusive period to file a plan of reorganization to February
27, 2025.
As shared by Troubled Company Reporter, the Debtor is a business
located solely in the Commonwealth of Pennsylvania. The Debtor
initiated this Chapter 11 case to restructure secured mortgage
debts and unsecured debts related to business operations.
The Debtor explains that it has ongoing negotiations with parties
related to mortgage claims, which will impact the construction of a
feasible 11 plan of reorganization. The parties continue to make
progress in these negotiations.
The Debtor has complied with all of their post-filing Chapter 11
obligations.
Everest Lending Group, LLC, is represented by;
Brian C. Thompson, Esq.
Thompson Law Group, PC
125 Warrendale Bayne Road, Suite 200
Warrendale, PA 15086
Tel: (724) 799-8404
Fax: (724) 799-8409
Email: bthompson@thompsonattorney.com
About Everest Lending Group
Everest Lending Group, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. W.D. Pa. Case No. 24-21018) on April 26, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by THOMPSON LAW GROUP, P.C.
EYENOVIA INC: OKs Reverse Stock Split, Stock Plan Amendment
-----------------------------------------------------------
A Special Meeting of Stockholders of Eyenovia, Inc. was held in a
virtual format on January 21, 2025. Of Eyenovia's 111,425,129
shares of common stock, $0.0001 par value per share, issued and
eligible to vote as of the record date of December 9, 2024, a
quorum of 58,272,257 shares, or approximately 52.3% of the eligible
shares, was present virtually or represented by proxy at the
Special Meeting. The following actions were taken at the Special
Meeting:
1. Approved an amendment to Eyenovia's Amended and Restated
Certificate of Incorporation, as amended, to effect a reverse stock
split of the Company's issued and outstanding shares of common
stock, at a ratio of between 1:40 and 1:80.
2. Approved an amendment to Eyenovia's Amended and Restated
2018 Omnibus Stock Incentive Plan to reserve an additional 350,000
shares of the Company's common stock for issuance thereunder, which
number will not be adjusted as a result of the Reverse Stock Split
Amendment.
3. Approved, for purposes of Nasdaq Listing Rule 5635(d), the
potential issuance of up to an aggregate of 73,029,273 shares of
common stock upon the exercise of the Purchase Warrants issued by
the Company pursuant to the Purchase Agreements.
About Eyenovia
New York, N.Y.-based Eyenovia, Inc. is an ophthalmic technology
company commercializing Mydcombi (tropicamide and phenylephrine HCL
ophthalmic spray) for inducing mydriasis for routine diagnostic
procedures and in conditions where short-term pupil dilation is
desired, preparing for the commercialization of clobetasol
propionate ophthalmic suspension 0.05% ("clobetasol propionate"),
for the treatment of post-operative inflammation and pain following
ocular surgery, and developing the Optejet delivery system both for
use in combination with its own drug-device therapeutic programs
and for out-licensing for use in combination with therapeutics for
additional indications. The Company's aim is to improve the
delivery of topical ophthalmic medication through the ergonomic
design of the Optejet, which facilitates ease-of-use and delivery
of a more physiologically appropriate medication volume, with the
goal to reduce side effects and improve tolerability and introduce
digital health technology to improve therapy compliance and
ultimately medical outcomes.
In its Quarterly Report for the three months ended September 30,
2024, Eyenovia reported that it had unrestricted cash and cash
equivalents of approximately $7.2 million and an accumulated
deficit of approximately $175.4 million as of September 30, 2024.
For the nine months ended September 30, 2024 and 2023, the Company
used cash in operations of approximately $24.0 million and $17.5
million, respectively. The Company does not have recurring
significant revenue and has not yet achieved profitability. The
Company expects to continue to incur cash outflows from operations
for the near future. The Company expects that it will continue to
incur significant research and development and selling, general and
administrative expenses and, as a result, it will eventually need
to generate significant product revenues to achieve profitability.
These circumstances raise substantial doubt about the Company's
ability to continue as a going concern for at least one year from
the date that the financial statements were issued.
As of September 30, 2024, Eyenovia had $22,796,091 in total assets,
$19,076,788 in total liabilities, and $3,719,303 in total
stockholders' equity. For the years ended December 31, 2023 and
2022, Eyenovia incurred net losses of approximately $27.3 million
and $28 million, respectively.
FALL CREEK: Court Extends Cash Collateral Access to May 28
----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of North
Carolina, Durham Division granted Fall Creek One, LLC authority to
use cash collateral until May 28.
The interim order authorized the company to use cash collateral on
an interim basis in accordance with ITS BUDGET, which shows
projected total expenses of $28,951.25 for February.
Marine Federal Credit Union, a secured creditor, was granted a
replacement lien on the company's post-petition collateral as
protection for the use of its cash collateral.
As additional protection, MFCU will receive a monthly payment of
$9,116.67.
The next hearing will be held on May 28.
Marine Federal Credit Union can be reached through its counsel:
Kenneth Lautenschlager, Esq.
Johnston, Allison & Hord, P.A.
P.O. Box 36469
Charlotte, North Carolina 28236
Telephone: 704.332.1181/704.998.2250
Fax: 704.376.1628
klauten@jahlaw.com
About Fall Creek One
Fall Creek One, LLC, is a North Carolina limited liability company,
established to acquire real property located in Purlear, Wilkes
County, N.C.
The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-80221) on Sept.
27, 2024, listing $1 million to $10 million in both assets and
liabilities. The petition was signed by Anthony H. Dilweg as
manager.
Judge Benjamin A. Kahn oversees the case.
The Debtor is represented by:
Laurie B. Biggs
Biggs Law Firm PLLC
Tel: 919-375-8040
Email: lbiggs@biggslawnc.com
FEENEY ENTERPRISES: Hires Brian K. McMahon P.A. as Attorney
-----------------------------------------------------------
Feeney Enterprises, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to hire Brian K.
McMahon, P.A. as attorney.
The firm will provide these services:
a. give advice to the Debtor with respect to its powers and
duties as a debtor in possession;
b. advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's operating Guidelines and
Reporting Requirements and with the rules of the court;
c. prepare motions, pleadings, orders, applications, adversary
proceedings, and other legal documents necessary in the
administration of the case;
d. protect the interest of the debtor in all matters pending
before the court;
e. represent the Debtor in negotiation with its creditors in
the preparation of a plan.
The firm will be paid at $450 per hour.
The firm will be paid a retainer in the amount of $1,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Brian K. McMahon, Esq., a partner at Brian K. McMahon, P.A.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Brian K. McMahon, Esq.
Brian K. McMahon, PA
1401 Forum Way, Suite 730
West Palm Beach, FL 33401
Telephone: (561) 658-1789
Facsimile: (561) 478-3111
Email: brian@bkmbankruptcy.com
About Feeney Enterprises Inc.
Feeney Enterprises, Inc., operating under trade names including
Cabinet Maker Warehouse, Feeney Supply, and Bevel-Edge, is a
Stuart, Florida-based cabinet and supply distributor.
Feeney Enterprises filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10570) on
January 21, 2025. In its petition, the Debtor reported assets
between $100,000 and $500,000 and liabilities between $500,000 and
$1 million.
Judge Mindy A. Mora handles the case.
The Debtor is represented by Brian K. McMahon, Esq. at Brian K.
McMahon, PA.
FELTRIM BALMORAL: Gets Extension to Access Cash Collateral
----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida issued
an eighth interim order allowing Feltrim Balmoral Estates, LLC and
its affiliates to use cash collateral on an interim basis pending a
further hearing on March 13.
The order authorized the companies to use cash collateral, which
consists of cash, deposit accounts, account receivables and
proceeds from business operations, subject to compliance with the
companies' budgets, with a 10% variance.
The budget shows total operational expenses of $149,072.08 from
December to March.
As adequate protection, secured creditors Seacoast National Bank
and Lynk Capital, LLC were granted continuing and perfected
replacement liens to the same extent and with the same priority and
validity as their pre-bankruptcy liens.
As additional protection, Seacoast will receive a monthly payment
of $5,000.
Seacoast can be reached through its counsel:
Robert A. Cooper, Esq.
Hahn Loeser & Parks LLP
2400 First Street, Suite 300
Fort Myers, FL 33901
Telephone: 239-337-6730
Fax: 239-337-6701
racooper@hahnlaw.com
-- and --
Daniel A. DeMarco, Esq.
Hahn Loeser & Parks LLP
200 Public Square, Suite 2800
Cleveland, OH 44114
Telephone: 216-621-0150
Facsimile: 216-241-2824
dademarco@hahnlaw.com
Lynk Capital can be reached through its counsel:
Allan E. Wulbern, Esq.
Smith Hulsey & Busey
One Independent Drive, Suite 3300
Jacksonville, FL 32202
(904) 359-7700
(904) 359-7708 (facsimile)
awulbern@smithhulsey.com
About Feltrim Balmoral Estates
Feltrim Balmoral Estates, LLC owns a clubhouse located at 124 Kenny
Blvd., Haines City, Fla., having a fair value of $3 million.
Feltrim Balmoral Estates and its affiliates filed their voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. M.D. Fla. Case No. 24-02122) on April 17, 2024. The case is
jointly administered in Case No. 24-02122.
In the petitions signed by Garrett Kenny, owner and manager,
Feltrim Balmoral Estates disclosed $4,657,697 in assets and
$16,239,519 in liabilities; The Enclave At Balmoral, LLC disclosed
$5,091,844 in assets and $10,565,256 in liabilities; and Balmoral
Estates, LP listed $14,327,306 in assets and $25,909,466 in
liabilities.
Judge Catherine Peek McEwen oversees the case.
The Debtor is represented by:
Alberto F Gomez, Jr.
Johnson Pope Bokor Ruppel & Burns, LLP
Tel: 813-225-2500
Email: al@jpfirm.com
FLAGSTAR BANK: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed the Long- and Short-Term Issuer Default
Ratings (IDRs) for Flagstar Financial, Inc. (FLG) and its bank
subsidiary, Flagstar Bank, N.A. (FBNA) at 'BB/B', respectively. The
Rating Outlook on the Long-term IDR is Stable.
Key Rating Drivers
The affirmation of FLG's ratings and the fact that Outlook remains
Stable reflects the bank's ongoing challenges to return to
profitability as well as elevated execution risk during its
transformation. These factors are balanced against the strides it
has made to stabilize its funding and liquidity profile, and
improving its understanding of, and reserves for its credit risks.
Profitability the Primary Rating Driver: FLG's earnings and
profitability profile largely drives its overall rating. A
comprehensive review of its loan portfolio led to loan loss
provisions of $942 million in the first three quarters of 2024.
This, combined with a greater reliance on higher cost wholesale
funding and brokered deposits, and a reduction in risk weighted
assets (RWA), resulted in an annualized operating profit to RWA
ratio of -1.62% for 3Q24.
Although the magnitude of provisions will likely decrease
significantly, and lead to an improvement in the operating profit
to RWAs ratio by YE24, they are expected to remain higher than
those of its peers, which will continue weigh on profitability in
2025. Additionally, elevated FDIC assessments and restructuring
expenses will further affect profitability. As a result, Fitch does
not anticipate that the operating profit to RWA ratio will rise
above 0.50% on annualized basis within the 12-24 month rating
horizon.
Business Profile Continues to Evolve: Since taking over last year,
current management has focused on rebalancing FLG's balance sheet
and loan portfolio, while remediating the material weaknesses
identified in 1Q24, and working towards restoring profitability.
This entails reducing FLG's commercial real estate (CRE)
concentration, while increasing commercial and industrial (C&I) and
consumer lending, aiming for each to eventually comprise equal
parts of the loan portfolio. To this end, the bank has made
significant investments, adding experienced leadership and talent
to expand its presence in middle-market commercial lending.
De-risking Continues: Fitch believes FLG has made significant
progress in identifying and remediating the material weakness
related to ineffective controls and oversight in internal loan
reviews. However, as these efforts are ongoing, Fitch views
potential credit, regulatory and execution risks as higher than its
base case expectation for higher-rated regional bank peers. Over
the intermediate term, the business transformation envisioned by
management will simplify the bank's operations and lower its
concentrated exposure to CRE and other operational risks.
Asset Quality Weaker: After announcing a review of its multifamily
and CRE portfolios, FLG began building loan loss reserves and
charging off problem loans. For the nine-month period through 3Q24,
the bank charged off $670 million of loans.
FLG's impaired loans ratio rose to 3.92% at 3Q24, exceeding Fitch's
base case expectation. However, Fitch believes that the magnitude
of future provisions and charge-offs will likely to be
significantly less, though still above the bank's historical norms.
While the bank continues to reduce its CRE concentration, it
remains among the most concentrated in Fitch's rated universe of US
banks.
Capital Levels Adequate: The injection of $1 billion of investor
capital earlier in 2024, along with asset sales/runoff, reduced
risk-weighted assets by 14% in the first nine months of 2024 and
increased FLG's CET1 ratio to 10.76% as of 3Q24. Fitch expects the
asset sales executed in 4Q24 to further improve risk-based capital
metrics. These levels exceed historical levels and align more
closely with large regional peers, partially compensating for FLG's
lack of earnings power and high loan concentration.
While risk-weighted capital metrics may rise in the near term,
Fitch believes ongoing net losses in 2025 will consume some
capital. Therefore, Fitch anticipates that FLG's CET1 ratio over
the intermediate term is likely to approximate 3Q24 levels.
Liquidity Stabilized: Following the deposit outflows of 1Q24, FLG
has made progress in stabilizing and growing deposits. While this
entailed some reliance on aggressive promotional pricing, which
weighed on the NIM, the bank successfully retained private bank
deposits. This supports its intent to become a relationship-driven,
middle market commercial bank.
Along with the disposition of loans, these efforts have reduced the
bank's reliance on wholesale funding and lowered its
loan-to-deposit ratio to 88.5% at 3Q24. This ratio is significantly
below historical levels, but higher than that of large regional
peers.
Holding Company Notching: FLG's Viability Rating (VR) is equalized
with that of its operating subsidiary, FBNA, reflecting its role as
the bank holding company, which is mandated in the U.S. to act as a
source of strength for its bank subsidiaries. The ratings are also
equalized to reflect the strong correlation between holding company
failure and default probabilities. Additionally, holding company
double leverage is below 120%, and liquidity is sufficient to cover
near-term obligations.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A decrease in CET1 capital below 10.0% without a credible plan to
increase levels above this threshold;
- Increased reliance on wholesale funding, reflected in a
loan-to-deposit ratio sustained above 115%;
- An inability to attract and retain key personnel or personnel
defections that result in large deposit attrition, or an inability
to service clients;
- Sustained deterioration of asset quality, resulting in annualized
net charge-offs in excess of current loan loss reserves.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A return to sustained run rate profitability consistent with
investment-grade benchmark levels;
- An improved risk profile with materially lower CRE concentration
while maintaining or increasing capital levels;
- A sustained reduction in funding costs and wholesale funding
reliance could support positive rating action, assuming a return to
profitability;
- A return to an investment-grade rating would entail sustained
execution of the bank's business plan, implementation of robust
risk controls, a return to stable profitability, and capital levels
in-line with higher-rated regional bank peers.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Deposit Ratings
FBNA's long-term deposit rating of 'BB+' is one notch higher than
the bank's Long-Term IDR because U.S. uninsured deposits benefit
from depositor preference. U.S. depositor preference gives deposit
liabilities superior recovery prospects in the event of default.
The short-term deposit rating of 'B' is mapped to the long-term
deposit rating of 'BB+' in accordance with Fitch's bank rating
criteria.
Subordinated Debt and Other Hybrid Securities
Subordinated debt and other hybrid capital issued by FLG are all
notched down from its viability rating (VR) in accordance with
Fitch's assessment of each instrument's respective non-performance
and relative loss severity risk profiles, which vary considerably.
FLG's subordinated debt rating of 'BB−' reflects one notch of
loss severity. In accordance with Fitch's bank rating criteria,
this reflects alternate notching to the base case of two notches
due to Fitch's view of U.S. regulators' resolution alternatives for
an entity like FLG, as well as early intervention options available
to banking regulators under U.S. law.
The preferred stock rating of 'B−' includes two notches for loss
severity given the securities' deep subordination in the capital
structure, and two notches for non-performance, given that the
coupon of the securities is noncumulative and fully discretionary.
Government Support Rating
FLG and FBNA's GSRs are rated 'ns', and there is limited likelihood
that these ratings will change over the foreseeable future.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Deposit Ratings
The long- and short-term deposit ratings are sensitive to any
change to FBNA's Long-Term IDR.
Subordinated Debt and Other Hybrid Securities
FLG's subordinated debt and preferred stock ratings are sensitive
to any change to either the VR or its view of loss severity under a
resolution scenario.
Government Support Rating
FLG and FBNA's GSRs are rated 'ns', and there is limited likelihood
that these ratings will change in the foreseeable future.
Holding Company
If the holding company shows signs of weakness, struggles to access
capital markets, or lacks adequate cash flow coverage to meet
near-term obligations, Fitch could notch the holding company VR
from the ratings of the operating company. The holding company
rating is also sensitive to a decrease in dividend capacity at the
operating bank. Fitch would review the holding company ratings if a
significant loss at the bank results in diminished dividend
capacity and cash flow pressure at the holding company.
VR ADJUSTMENTS
The VR has been assigned below the implied VR due to the following
adjustment reason: Weakest Link - Earnings and Profitability.
The Business Profile score has been assigned below the implied
score due to the following adjustment reason: Historical and Future
Developments (negative).
The Asset Quality score has been assigned below the implied score
due to the following adjustment reasons: Concentrations (negative),
Historical and Future Metrics (negative).
The Earnings & Profitability score has been assigned below the
implied score due to the following adjustment reason: Revenue
Diversification (negative) and Future Metrics (negative).
The Capitalization and Leverage score has been assigned below the
implied score due to the following adjustment reason: Internal
Capitalization Generation and Growth (negative).
The Funding and Liquidity score has been assigned below the implied
score due to the following adjustment reason: Non-Deposit Funding
(negative).
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Flagstar Bank, N.A. LT IDR BB Affirmed BB
ST IDR B Affirmed B
Viability bb Affirmed bb
Government Support ns Affirmed ns
long-term
deposits LT BB+ Affirmed BB+
short-term
deposits ST B Affirmed B
Flagstar
Financial, Inc. LT IDR BB Affirmed BB
ST IDR B Affirmed B
Viability bb Affirmed bb
Government Support ns Affirmed ns
subordinated LT BB- Affirmed BB-
preferred LT B- Affirmed B-
FORTIS 333: Fitch Assigns 'B+' LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has assigned a first-time Long-Term Issuer Default
Rating (IDR) of 'B+' to Fortis 333, Inc. (Fortis). Fitch has also
assigned a 'BB-'/'RR3' rating to the company's new first lien term
loans and revolver. The Rating Outlook is Stable.
The 'B+' IDR reflects Fortis' global position as a top-three leader
in the composites market, specialty products that lead to sticky
customer relationships, and ability to generate positive FCF. These
factors are balanced by a moderately high leverage profile and
material exposure to the cyclical construction and consumer marine
end-markets.
Key Rating Drivers
Strong Position in Consolidated Market: Fortis' global position as
a top-three leader in the composites market bolsters the company's
credit profile. Fortis and its competitors AOC and Polynt are the
top three producers of composite resins globally, accounting for
approximately 80% of market share in North America and 60% in
Europe. Consolidation has also contributed to the removal of some
global capacity in the industry, which supports pricing and
provides additional barriers to entry.
High-Touch Customer Relationships: Products in this industry are
often specified in to customer processes, leading to long-term
relationships with moderate-to-high switching costs. This also
provides an opportunity to pass-through input costs, allowing the
company to maintain or even expand EBITDA margins during periods of
high prices. Fortis demonstrated this by successfully increasing
margins from around 19% in 2021 to around 22% in 2024, despite a
material increase in inflation over the period.
Moderately High Leverage: Fitch forecasts EBITDA leverage around
5.8x at YE 2025 and subsequently declining to around 5.2x by 2028.
Fortis' pro forma capital structure will consist of a EUR200
million revolver, $740 million term loan and a EUR350 million term
loan. Fitch believes the incentive to prepay a material amount of
debt, outside of mandatory term loan amortization on the U.S.
dollar facility, is low, and deleveraging will largely rely on
EBITDA growth.
Solid Cash Generation: Fitch views Fortis' cash generation
favorably as pre-dividend FCF is at least EUR50 million each year
of the forecast, despite annual interest expense of approximately
EUR75 million. The company operates with an asset-light structure,
leading to minimal fixed costs. Existing equipment also requires
minimal capex spend, around EUR10 million annually for maintenance.
FCF provides management flexibility with regard to capital
allocation, potentially funding M&A activity, growth capex or
sponsor distributions.
Cyclicality Considerations: Although Fortis has maintained
profitability metrics through recent periods of economic stress,
the company is exposed to several cyclical end-markets, notably
consumer marine, recreational vehicles, and residential and
industrial construction. These end-markets increase the risk of
earnings volatility over the cycle. Fitch notes that the company's
exposure to the corrosion and infrastructure end-markets helps
mitigate some of the earnings volatility.
Derivation Summary
Relative to its rated peers, Fortis' revenue scale is similar to
that of Vantage Specialty Chemicals, Inc. (B/Negative), but smaller
than both Bakelite US Holdco Inc. (BB-/Negative) and W.R. Grace
Holdings LLC (B/Negative).
The company's specialty products position EBITDA margins favorably
compared with both Bakelite and Vantage, while being in a similar
range as W.R. Grace. Pro forma the transaction, Fortis' EBITDA
Leverage trends toward the low-5.0x range in the forecast, which
compares favorably with its peers.
Key Assumptions
- Low-single-digit organic revenue growth each year;
- Capex in line with management guidance;
- No debt prepayment outside of required 1% amortization on U.S.
dollar term loan;
- Fitch assumed pricing of S+350 on revolver, S+375 on U.S. dollar
term loan and E+400 on euro term loan.
Recovery Analysis
The recovery analysis assumes that Fortis would be reorganized as a
going concern (GC) in bankruptcy rather than liquidated. Fitch has
assumed a 10% administrative claim and that the revolver will be
fully drawn at the time of default.
Going-Concern Approach
Fitch projects Fortis' going-concern EBITDA (GC EBITDA) of EUR135
million. The GC EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganization EBITDA level, upon which it bases
the enterprise valuation. Specifically, the GC EBITDA depicts a
recovery following a hypothetical default scenario, precipitated by
a sustained economic contraction, leading to material declines in
volumes and profitability in more cyclical end-markets like
construction and marine.
An enterprise value multiple of 6x EBITDA is applied to the GC
EBITDA to calculate a post-reorganization enterprise value. The
choice of this multiple considered historical bankruptcy case study
exit multiples for peer companies. Fitch also took into
consideration Fortis' strong position in the consolidated
composites market.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA Leverage durably above 5.5x;
- Deterioration in EBITDA margins toward the mid-teens, potentially
driven by operating inefficiencies or the inability to pass-through
raw material costs;
- Large debt-funded acquisitions or aggressive sponsor distribution
policies.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA Leverage durably below 4.5x;
- Material increase in size, scale or diversification, while
maintaining conservative credit metrics.
Liquidity and Debt Structure
Fitch expects Fortis to maintain adequate liquidity throughout the
forecast period. With around EUR50 million of cash on hand, coupled
with access to the EUR200 million revolver, the company can
effectively manage its liquidity requirements of minimal capex and
1% amortization on the U.S. dollar term loan.
Issuer Profile
Fortis 333, Inc. (fka INEOS Composites) is a leading global
manufacturer of unsaturated polyester resins (UPR), vinyl ester
resins (VER) and gelcoats for a wide range of applications,
including construction, marine and transport.
Date of Relevant Committee
23-Jan-2025
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
----------- ------ --------
Fortis 333, Inc. LT IDR B+ New Rating
senior secured LT BB- New Rating RR3
FRANCHISE GROUP: Willkie's Selection as Bankruptcy Counsel Opposed
------------------------------------------------------------------
Randi Love of Bloomberg Law reports that lenders are opposing
Franchise Group Inc.'s request to retain Willkie Farr & Gallagher
LLP as its bankruptcy counsel, citing alleged conflicts of interest
tied to the company's former CEO and a financial firm involved in a
disputed buyout.
In an objection filed Saturday in the U.S. Bankruptcy Court for the
District of Delaware, the lenders argued that ex-CEO Brian Kahn and
B. Riley Financial Group Inc. played key roles in a 2023 buyout
that is now a focal point of creditor complaints. They noted that
Willkie has previously represented both Kahn and B. Riley in
various matters, raising concerns about the firm's impartiality in
the bankruptcy proceedings.
About Franchise Group Inc.
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy's Home Furnishings and Sylvan Learning
Systems, Inc.
Franchise Group, Inc. and its affiliates filed their voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D. Del. Lead Case No. 24-12480) on Nov. 3, 2024, listing
$1,000,000,001 to $10 billion in both assets and liabilities. The
petitions were signed by David Orlofsky as chief restructuring
officer.
Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor,
LLP are serving as legal counsel, AlixPartners is serving as
financial advisor and Chief Restructuring Officer, and Ducera
Partners is serving as investment banker to the Company. Paul
Hastings LLP is serving as legal counsel and Lazard is serving as
investment banker to the first lien ad hoc group.
GMB TRANSPORT: Seeks to Hire Collar City Auctions as Appraiser
--------------------------------------------------------------
GMB Transport, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of New York to employ the Collar City
Auctions as appraiser.
The firm will provide an appraisal of the Debtor's trucks and two
trailers.
The firm will charge a flat fee of $1,250 for its services.
Prior to the retention application, the Debtor remitted $625 to
Collar City to be held in trust pending a final compensation
order.
Randy Passonno, the president of Collar City Auctions, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Randy Passonno
Collar City Auctions
9423 Western Turnpike
Delanson, NY 12053
Telephone: (518) 895-8150
About GMB Transport LLC
GMB Transport, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-60857) on October 27,
2024, with up to $500,000 in assets and up to $1 million in
liabilities. Scott J. Bornt, chief executive officer, signed the
petition.
Judge Patrick G. Radel oversees the case.
Michael Boyle, Esq., at Boyle Legal LLC represents the Debtor as
bankruptcy counsel.
HARBORVIEW REHABILITATION: Hires Capozzi Adler as Special Counsel
-----------------------------------------------------------------
Harborview Rehabilitation and Care Center at Lansdale, LLC seeks
approval from the U.S. Bankruptcy Court for the Eastern District of
Pennsylvania to employ Capozzi Adler, P.C., as special counsel.
The Debtor needs the firm's legal assistance in connection with
employment, labor law and union agreement matters.
The firm will be paid at these rates:
Attorneys $400 to $550 per hour
Paralegals $250 to $300 per hour
Law Clerks $200 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
The firm can be reached through:
Craig I. Adler, Esq.
Capozzi Adler, P.C.
355 North 21st Street, Suite 205
Camp Hill, PA
E-mail: craiga@capozziadler.com
info@capozziadler.com
About Harborview Rehabilitation
and Care Center at Lansdale, LLC
Harborview Rehabilitation and Care Center at Landsdale, LLC in
Coopersburg, PA, sought relief under Chapter 11 of the Bankruptcy
Code filed its voluntary petition for Chapter 11 protection (Bankr.
E.D. Pa. Case No. 25-10020) on Jan. 3, 2025, listing as much as $1
million to $10 million in both assets and liabilities. Leibel
Gutman as manager of Sole Member, Harborview Holdings LLC., signed
the petition.
Judge Patricia M Mayer oversees the case.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY PC serve as the Debtor's legal
counsel.
HARBORVIEW REHABILITATION: Taps Cunningham Chernicoff as Counsel
----------------------------------------------------------------
Harborview Rehabilitation and Care Center at Landsdale, LLC filed
an amended application seeking approval from the U.S. Bankruptcy
Court for the Eastern District of Pennsylvania to employ
Cunningham, Chernicoff & Warshawsky, P.C. as counsel.
The firm will provide these services:
a. give the Debtor legal advice regarding its powers and
duties as Debtor-in-Possession in the continued operation of its
business and management of its property;
b. prepare and file on behalf of the Debtor, as
Debtor-in-Possession, the original Petition and Schedules, and all
necessary applications, complaints, answers, orders, reports and
other legal papers; and
c. perform all other legal services for the Debtor, as
Debtor-in-Possession, which may be necessary.
The firm will be paid at these rates:
Robert E. Chernicoff $450 per hour
Partners $400 to $450 per hour
Associate Attorneys $225 to $350 per hour
Paralegals $100 to $175 per hour
The Debtor paid the firm a retainer of $24,460.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert E. Chernicoff, Esq., a partner at Cunningham, Chernicoff &
Warshawsky, P.C., disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Robert E. Chernicoff, Esq.
Cunningham, Chernicoff & Warshawsky, P.C.
2320 North Second Street
P. O. Box 60457
Harrisburg, PA 17106-0457
Tel: (717) 238-6570
About Harborview Rehabilitation and
Care Center at Landsdale, LLC
Harborview Rehabilitation and Care Center at Landsdale, LLC in
Coopersburg, PA, sought relief under Chapter 11 of the Bankruptcy
Code filed its voluntary petition for Chapter 11 protection (Bankr.
E.D. Pa. Case No. 25-10020) on Jan. 3, 2025, listing as much as $1
million to $10 million in both assets and liabilities. Leibel
Gutman as manager of Sole Member, Harborview Holdings LLC., signed
the petition.
Judge Patricia M Mayer oversees the case.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY PC serve as the Debtor's legal
counsel.
HESS MIDSTREAM: S&P Rates $800MM Senior Unsecured Debt 'BB+'
------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '3'
recovery rating to Hess Midstream Operations L.P.'s (HESM) proposed
$800 million senior unsecured debt issuance and placed the 'BB+'
rating on CreditWatch with positive implications. The '3' recovery
rating indicates its expectation that lenders would receive
meaningful (50%-70%; rounded estimate: 55%) recovery in the event
of a default.
The partnership plans to use the net proceeds from this issuance to
redeem its outstanding $800 million 5.625% senior notes due 2026.
S&P's 'BB+' issuer credit rating on HESM remains on CreditWatch,
where S&P placed it with positive implications on Oct. 24, 2023.
After completing the unit repurchase transaction, ownership of Hess
Midstream on a consolidated basis will be approximately 47.9% for
the public, 14.3% for Global Infrastructure Partners, a part of
BlackRock, and 37.8% for Hess Corporation. HESM owns midstream
assets, which it uses to provide services to Hess and third-party
customers.
HIGH HEELS: Seeks to Hire Joel A. Schechter as Legal Counsel
------------------------------------------------------------
High Heels Dancing Co. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to hire the Law Offices
of Joel A. Schechter to handle its Chapter 11 case.
The firm's services include:
a. give the Debtor legal advice with respect to its powers and
duties as Debtor in the continued operation of its business and
financial affairs;
b. prepare necessary motions, answers, orders, reports and
other legal papers necessary to the proceedings; and
c. perform all other legal services.
The firm received a retainer in the amount of $25,000 and filing
fee of $1,738 from the Debtor.
Joel A. Schechter, Esq. disclosed in a court filing that his firm
is a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Joel A. Schechter, Esq.
Law Offices of Joel A. Schechter
53 W. Jackson Blvd., Suite 1522
Chicago, IL 60604
Telephone: (312) 332-0267
Email: joel@jasbklaw.com
About High Heels Dancing Co.
High Heels Dancing Co. is operating as High Heels Gentlemen's Club
in Somonauk, Illinois.
High Heels Dancing Co. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-00096) on Jan. 4,
2025 In its petition, the Debtor reports estimated assets between
$50,000 and $100,000 and estimated liabilities between $500,000 and
$1 million.
Joel A Schechter, Esq. of Law Offices Of Joel Schechter represents
the Debtor as counsel.
INDIVIDUALIZED ABA: Gets OK to Use Cash Collateral Until April 23
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California
granted Individualized ABA Services for Families, LLC interim
approval to continue to use cash collateral.
The order signed by Judge William Lafferty, III authorized the
company to use cash collateral from Jan. 25 to April 23 to pay
post-petition operational expenses set forth in its budget.
Secured creditors, including Newtek Bank N.A. and Kapitus
Servicing, Inc., were granted replacement liens on the company's
assets, with the same validity, priority, and extent as their
pre-bankruptcy liens.
As additional protection, Newtek will receive monthly payments of
$3,500.
The company was ordered to make monthly carve-out payments of
$1,000 to the Subchapter V trustee until further order of the
court.
Newtek can be reached through its counsel:
Christopher D. Crowell, Esq.
Hemar, Rousso & Heald, LLP
15910 Ventura Boulevard, 12th Floor
Encino, CA 91436
Email: ccrowell@hrhlaw.com
Kapitus Servicing can be reached through its counsel:
Rebecca Wicks, Esq.
Buchalter, A Professional Corporation
18400 Von Karman Avenue, Suite 800
Irvine, CA 92612
Telephone: (949) 760-1121
Facsimile: (949) 720-0182
Email: rwicks@buchalter.com
About Individualized ABA Services
for Families
Individualized ABA Services for Families, LLC sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.
Calif. Case No. 24-41559) on October 2, 2024, with total assets of
$193,244 and total liabilities of $1,635,914. Raajna Naidu, chief
executive officer, signed the petition.
Judge William J. Lafferty oversees the case.
The Debtor is represented by:
Michael Jay Berger, Esq.
Law Offices Of Michael Jay Berger
Email: michael.berger@bankruptcypower.com
INNOVATE CORP: Whitefort Capital Holds 7.6% Equity Stake
--------------------------------------------------------
Whitefort Capital Management, LP, David Salanic, and Joseph Kaplan,
a U.S. citizen, disclosed in a Schedule 13G filed with the U.S.
Securities and Exchange Commission that they beneficially owned
shares of Innovate Corp.'s Common Shares.
As of the close of business on January 21, 2025,
(a) Whitefort Management, as the investment manager of certain
client accounts, may be deemed to beneficially own the 1,029,264
Shares held in such accounts, consisting of 743,000 Shares held
outright and $12,218,000 in principal amount of the Company's 7.6%
convertible senior notes due 2026 that are currently convertible
into 286,264 Shares;
(b) Mr. Salanic, as a Co-Managing Partner of Whitefort
Management, may be deemed to beneficially own the 1,029,264 Shares
held in the client accounts managed by Whitefort Management,
consisting of 743,000 Shares held outright and $12,218,000 in
principal amount of 2026 Convertible Notes that are currently
convertible into 286,264 Shares.
(c) Mr. Kaplan, as a Co-Managing Partner of Whitefort
Management, may be deemed to beneficially own the 1,029,264 Shares
held in the client accounts managed by Whitefort Management,
consisting of 743,000 Shares held outright and $12,218,000 in
principal amount of 2026 Convertible Notes that are currently
convertible into 286,264 Shares.
The percentage of Shares reported owned by each person is based
upon 13,261,379 Shares outstanding as of November 1, 2024, as
reported on the Company's Form 10-Q filed with the Securities and
Exchange Commission on November 6, 2024. As of the close of
business on January 21, 2025, each of the Reporting Persons may be
deemed to beneficially own 7.6% of the outstanding Shares.
Whitefort Capital may be reached:
David Salanic & Joseph Kaplan
Co-Managing Partners
Whitefort Capital Management, LP
12 East 49th Street,
40th Floor
New York, N.Y. 10017
Tel: 212-259-4370
A full-text copy of Whitefort Capital's SEC Report is available
at:
https://tinyurl.com/3akvucsj
About Innovate
New York-based Innovate Corp. -- innovatecorp.com -- is a
diversified holding company that has a portfolio of subsidiaries in
a variety of operating segments. The Company seeks to grow these
businesses so that they can generate long-term sustainable free
cash flow and attractive returns in order to maximize value for all
stakeholders. As of Dec. 31, 2023, its three operating platforms or
reportable segments, based on management's organization of the
enterprise, are Infrastructure, Life Sciences, and Spectrum, plus
its other segment, which includes businesses that do not meet the
separately reportable segment thresholds.
Innovate incurred a net loss of $38.9 million in 2023, compared to
a net loss of $42 million in 2022. As of June 30, 2024, Innovate
had $898.9 million in total assets, $1.01 billion in total
liabilities, $15.9 million in total temporary equity, and a total
stockholders' deficit of $126.1 million.
Going Concern
As of November 6, 2024, there is substantial doubt about the
Company's ability to continue as a going concern within the next 12
months. According to the Company, the principal conditions leading
to this conclusion are the upcoming maturities of current debt at
certain of the Company's subsidiaries as well as from certain
cross-default provisions in the Company's Senior Secured Notes.
Based on these conditions, the Company may not be able to meet its
obligations at maturity and comply with certain cross-default
provisions under the Senior Secured Notes over the next 12 months.
The Company plans to alleviate these conditions through various
initiatives it is currently exploring, including refinancing the
debt at Broadcasting and DBMG, pursuing asset sales, and raising
additional capital. However, there can be no assurance that the
Company will have the ability to raise additional capital when
needed, be successful in any asset sales, or refinance its existing
debt, on attractive terms, or at all, nor any assurances that
lenders will provide additional extensions, waivers or amendments
in the event of future non-compliance with the Company's debt
covenants or other possible events of default. Further, there can
be no assurance that the Company will be able to execute a
reduction, extension, or refinancing of the debt, or that the terms
of any replacement financing would be as favorable as the terms of
the debt prior to the maturity date. There can be no assurance that
these plans will be successfully implemented or that they will
mitigate the conditions that raise substantial doubt about the
Company's ability to continue as a going concern. The inability to
refinance or extend the maturity of the current debt at the
Company's subsidiaries, or to raise sufficient cash to pay the debt
at maturity would have a material adverse effect on the Company's
financial condition and likely cause the price of the Company's
common stock to decline.
* * *
In May 2024, S&P Global Ratings lowered its Company credit rating
on Innovate Corp. to 'CCC' from 'CCC+' and its rating on the
company's senior notes due 2026 to 'CCC+' from 'B-'. The recovery
rating on the notes remains '2', indicating its expectation for
meaningful (75%) recovery in the event of a default. The negative
outlook reflects S&P's view that the company's liquidity will be
under stress in the next six to 12 months, such that sources are
unlikely to meet uses absent any unforeseen positive developments.
The downgrade indicates S&P Global Ratings' view that Innovate's
liquidity will be strained for the next six to 12 months and that
the risk of its failure to make interest payments has increased. As
of March 31, 2024, the company had corporate-level cash and
equivalents of $9.2 million and was fully drawn on its $20 million
line of credit. While the company receives cash flows from dividend
payments and tax share agreements from its subsidiary DBM Global
Inc., S&P believes it may be strained to make the $39 million in
interest payments on its corporate-level debt over the next 12
months.
JER INVESTORS: Seeks to Extend Plan Exclusivity to March 28
-----------------------------------------------------------
JER Investors Trust Inc., and affiliates asked the U.S. Bankruptcy
Court for the District of Delaware to extend their exclusivity
periods to file a plan of reorganization and obtain acceptance
thereof to March 28 and May 23, 2025, respectively.
The Debtors explain that an application of factors establishes
sufficient cause to further extend the Exclusive Periods. First,
the Debtors have made good faith progress towards confirming a
chapter 11 plan. Through mediation, the Debtors resolved in
principle the sole objection to the Combined Disclosure Statement
and Plan, and expect to file a revised Combined Disclosure
Statement and Plan promptly. The Debtors believe they have made
good faith progress towards confirmation and believe the request to
extend the Exclusive Periods as set forth herein is appropriate and
reasonable.
Relatedly, the Debtors have demonstrated reasonable prospects for
filing a viable plan. The Court conditionally approved the
disclosures in the Combined Disclosure Statement and Plan, which
reflects and incorporates numerous comments from key parties, and
that document will be further modified in consultation with the
Noteholders and the C-III Parties. The Debtors have also resolved
the sole objection to the Combined Disclosure Statement and Plan,
and now anticipate appearing at the Confirmation Hearing on an
uncontested basis.
Third, since the filing of these Chapter 11 Cases, the Debtors have
continued to pay their undisputed postpetition expenses and
invoices.
Fourth, this Motion is not intended to pressure creditors,
including the Noteholders and C-III Parties. The Debtors have no
ulterior motive in seeking to extend the Exclusive Periods, but
rather seek the extension requested pursuant to this Motion to
protect, not prejudice, the interests of creditors, including with
respect to the resolution of the Plan-Related Issues mediated by
the parties. An extension of the Exclusive Periods will allow the
Debtors to continue their efforts to maximize estate value while
avoiding the expense and distraction of a competing plan process,
which would likely complicate and increase the costs of
administering these Chapter 11 Cases.
Counsel to the Debtors:
Troutman Pepper Hamilton Sanders LLP
David M. Fournier, Esq.
Kenneth A. Listwak, Esq.
Tori L. Remington, Esq.
Hercules Plaza, Suite 5100
1313 N. Market Street, Suite 5100
Wilmington, DE 19801
Telephone: (302) 777-6500
Email: david.fournier@troutman.com
ken.listwak@troutman.com
tori.remington@troutman.com
-and-
Deborah Kovsky-Apap, Esq.
875 Third Avenue
New York, NY 10022
Telephone: (212) 704-6000
Email: deborah.kovsky@troutman.com
About JER Investors Trust
JER Investors Trust Inc. is a specialty finance company quoted on
the Pink Sheets that manages a portfolio of commercial real estate
structured finance products. Its investments include commercial
mortgage backed securities, mezzanine loans and participations in
mortgage loans, and an interest in the US Debt Fund. JER Investors
Trust Inc. is organized and conducts its operations so as to
qualify as a real estate investment trust ("REIT") for federal
income tax purposes. On the Web: http://www.jerinvestorstrust.com/.
JERIT Non-CDO CMBS 1 LLC and affiliate JER Investors Trust Inc.
sought Chapter 11 protection (Bankr. D. Del. Case No. (23-12108 and
23-12109) on Dec. 29, 2023.
The Hon. Thomas M. Horan is the case judge.
The Debtors tapped TROUTMAN PEPPER HAMILTON SANDERS LLP as counsel;
and DUNDON ADVISERS as financial advisor.
JER Investors estimated assets of $10 million to $50 million and
debt of $100 million to $500 million. JERIT Non-CDO estimated
assets of $10 million to $50 million and debt of just under
$50,000.
JPC LAND: Trustee Hires Bell Tower Commercial Real Estate as Broker
-------------------------------------------------------------------
John Patrick Lowee, the trustee appointed in the Chapter 11 case of
JPC Land Holdings, LLC, seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Bell Tower
Commercial Real Estate as real estate broker.
The Debtor needs a broker to market and sell its property located
at 338 Acres - Terra Escondido Sub division, Bastrop County,
Texas.
The broker will receive a commission of 3 percent of the property's
gross sale price.
Amber Moore, a real estate agent at Bell Tower Commercial Real
Estate, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Amber Moore
Bell Tower Commercial Real Estate
100 Congress Ave., Suite 2000
Austin, TX 78701
Telephone: (512) 687-3484
About JPC Land Holdings
JPC Land Holdings is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)). The Debtor owns a 369-acre property
known as Terra Escondido Subdivision valued at $3.2 million.
JPC Land Holdings sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-11180) on September
24, 2024, with up to $3,200,000 total assets and up to $7,537,126
total liabilities. Raif Castello, director and president, signed
the petition.
Judge Shad Robinson presides over the case.
Stephen W. Sather, Esq., at Barron Newburger, PC serves as the
Debtor's counsel.
JVK OPERATIONS: Taps Silver Birch/BA Securities as Advisor
----------------------------------------------------------
JVK Operations Limited and its affiliate seek approval from the
U.S. Bankruptcy Court for the Eastern District of New York to
employ Silver Birch, Inc., a Delaware corporation and BA
Securities, LLC, a Pennsylvania limited liability company as their
advisor and investment banker.
The firm's services include:
a. review the Debtors' business, markets, results of
operations, financial condition and prospects;
b. prepare with the Debtors materials to solicit interest from
potential Qualified Bidders. Marketing materials (together, the
"Documents") may describe the Debtors' business, markets,
management, results of operations, financial condition, prospects
and competition;
c. direct and coordinate the due diligence process, including,
without limitation, the coordination of confidentiality agreements
and access to a data room;
d. manage the marketing process by providing the first
response to initial due diligence questions, coordinating requests
for additional information and scheduling meetings between the
Debtors and interested Bidders;
e. solicit indications of interest and assist the Debtors in
evaluating and comparing offers to acquire the Debtors' Assets;
f. assist the Debtors and its advisors through the closing
process; and
g. advise Debtors, other professionals, and counsel on other
matters that may arrive from time to time during the Engagement.
The Debtors will pay to the Advisor all fees, compensation and
reimbursement of expenses as follows:
i. Minimum Fee. The Minimum Fee as follows: (i) $10,000,
payable by RMK NJ, not the Debtors, in installment beginning with
$2,000 upon execution of this Agreement and thereafter the balance
in weekly payments of $2,000 on or before Jan. 31, 2025, plus (ii)
an additional $40,000 (the "Minimum Fee Balance") in the event no
other Qualified Bidders (other than the entity disclosed to Advisor
prior to execution hereof (the "Prospective Stalking Horse") are
found during the Sale Process. All Fees and expense reimbursement
are subject to Bankruptcy Court review and approval. The Minimum
Fee Balance is payable at Closing on the Transaction if the Clients
close with the Stalking Horse Buyer. However, in the event the
Prospective Stalking Horse transaction does not close, and the
Debtors Plan is confirmed by the Court, the $40,000 will be
payable, at the Clients' option, on the Effective Date of the Plan,
or in 12 equal monthly installments commencing on the Effective
Date.
ii. Transaction Fee: If and when the Prospective Stalking Horse
bid is approved as a Qualified Bid, SBG may earn a transaction fee
("Transaction Fee") in the event the Prospective Stalking Horse bid
is topped. The Total Consideration must be equal to or over
$8,100,000 in order for the Transaction Fee to apply. Any
Transaction Fee is contingent upon the consummation/closing of a
Transaction and takes the place of the Minimum Fee. The Clients
receive a credit for any portion of the Minimum Fee paid against
the Transaction Fee and any Minimum Fee Balance is cancelled.
iii. Debtor-in-Possession Financing Placement Fee: If asked in
writing by the Debtors, the Advisor will seek DIP Financing
support. Subject to Court approval, the Advisor earns 3.5% of the
DIP Commitment on DIP Financing that closes as a result of the
Advisor's introduction to the lender, to be paid as an
Administrative Expense on or before Final Fee Applications.
iv. Expenses: Subject to review and approval by the Bankruptcy
Court, the Clients agree to reimburse Advisor for all reasonable
out-of-pocket expenses incurred in connection with the services
rendered hereunder during the term of this Agreement, including
third party charges for outside data and costs for the online data
room.
As disclosed in the court filings, neither Silver Birch and BA
Securities represents nor holds any interest adverse to the Debtors
or to the estates, and are "disinterested
persons" as that term is defined in 11 U.S.C. Sec. 101(14).
The advisors can be reached through:
John Chuff
BA Securities LLC
Four Tower Bridge,
200 Barr Harbor Drive, Ste. 400
W. Conshohocken, PA 19428
E-mail: jchuff@basecuritiesllc.com
- and -
Jeffrey R. Manning, Sr.
Silver Birch, Inc.
1463a Grandview Road
Arnold, MD 21012
E-mail: jrmanning@silvrbirch.com
About JVK Operations Limited
JVK Operations Ltd. is a provider of linen and garments laundry
services for healthcare facilities on the East Coast. JVK was
founded in 2004 and has been servicing hospitals, nursing homes and
healthcare institutions. The Company's processing services include
sorting of the soiled linen, washing, drying, ironing packing and
delivery according to customer specifications.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.Y. Case No. 24-70800) on March 1,
2024. In the petition signed by Vinod Samuel, president, the Debtor
disclosed up to $10 million in both assets and liabilities.
Judge Robert E. Grossman oversees the case.
Robert J. Spence, Esq., at SPENCE LAW OFFICE, P.C., represents the
Debtor as legal counsel.
KAL FREIGHT: Committee Hires Province LLC as Financial Advisor
--------------------------------------------------------------
The official committee of unsecured creditors of Kal Freight Inc.
and its affiliates seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to employ Province, LLC as its
financial advisor.
The firm will provide these services:
a. becoming familiar with and analyzing the Debtors' DIP
budget, assets and liabilities, and overall financial condition;
b. reviewing financial and operational information furnished
by the Debtors;
c. monitoring the sale process, interfacing with the Debtors'
professionals, and advising the Committee regarding the process;
d. scrutinizing the economic terms of various agreements,
including, but not limited to, various professional retentions;
e. analyzing the Debtors' proposed business plans and
developing alternative scenarios, if necessary;
f. assessing the Debtors' various pleadings and proposed
treatment of unsecured creditor claims therefrom;
g. preparing, or reviewing as applicable, avoidance action and
claim analyses;
h. assisting the Committee in reviewing the Debtors' financial
reports, including, but not limited to, statements of financial
affairs, schedules of assets and liabilities, DIP budgets, and
monthly operating reports;
i. advising the Committee on the current state of these
chapter 11 cases;
j. advising the Committee in negotiations with the Debtors and
third parties as necessary;
k. if necessary, participating as a witness in hearings before
the Court with respect to matters upon which Province has provided
advice; and
l. providing other activities as are approved by the
Committee, the Committee's counsel, and as agreed to by Province.
The firm will be paid at these rates:
Managing Directors/Principals $900 to $1,450 per hour
Vice Presidents/Directors, and
Senior Directors $700 to $1,050 per hour
Analysts/Associates,
and Senior Associates $350 to $825 per hour
Other/Para-Professional $270 to $450 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Adam Rosen, a partner at Province, LLC, disclosed in a court filing
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Adam Rosen
Province, LLC
2360 Corporate Circle Suite 340
Henderson, NV 89074
Telephone: (702) 685-5555
Email: arosen@provincefirm.com
About Kal Freight
Established in 2014, Kal Freight Inc. is a trucking company that
offers a complete range of transportation and logistics services to
diverse industries across the United States. It has strategic
locations across the United States with extended distribution
warehouses and terminals in Fontana, Calif., Texas, New Jersey,
Indiana, Tennessee, Georgia, Arizona and Arkansas.
Kal Freight and its affiliates filed Chapter 11 petitions (Bankr.
S.D. Tex. Case No. 24-90614) on December 5, 2024, with $100 million
to $500 million in both assets and liabilities.
Judge Christopher M. Lopez oversees the case.
The Debtors tapped Pachulski Stang Ziehl & Jones, LLP as legal
counsel; Development Specialists, Inc. as interim management
services provider; and Benesch, Friedlander, Coplan & Aronoff LLP
as special transportation counsel. Stretto, Inc. is the Debtors'
claims and noticing agent.
KAL FREIGHT: Committee Taps Brown Rudnick LLP as Co-Counsel
-----------------------------------------------------------
The official committee of unsecured creditors of Kal Freight Inc.
and its affiliates seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to employ Brown Rudnick LLP as
co-counsel.
The firm will render these services:
(a) assist, advise, and represent the committee in its
meetings, consultations and negotiations with the Debtors and other
parties in interest;
(b) assist, advise, and represent the committee in
understanding its powers and its duties;
(c) assist the committee's review of the Debtors' schedules of
assets and liabilities, statement of financial affairs and other
financial reports;
(d) assist the committee's investigation of the acts, conduct,
assets, liabilities, and financial condition of the Debtors and its
affiliates;
(e) assist and advise the committee regarding the
identification and prosecution of estate claims and causes of
action;
(f) assist and advise the committee in its review and analysis
of, and negotiations with the Debtors and any counterparties
related to, any potential sale or restructuring transactions;
(g) review and analyze all applications, motions, complaints,
orders, and other pleadings;
(h) prepare necessary legal papers on behalf of the committee,
and pursue or participate in contested matters and adversary
proceedings as may be necessary or appropriate in furtherance of
its duties, interest, and objectives;
(i) represent the committee at hearings held before the court
and communicate with it;
(j) assist, advise, and represent the committee in connection
with the review of filed proofs of claim and reconciliation of or
objections to such proofs of claim and any claims estimation
proceedings;
(k) assist, advise and represent the committee in its
participation in the negotiation, formulation, and drafting of a
plan of reorganization/liquidation;
(l) assist, advise and represent the committee with respect to
its communications with the general creditor body regarding
significant matters in these cases;
(m) respond to inquiries from individual creditors as to the
status of, and developments in, these cases; and
(n) provide such other services to the committee as may be
necessary in these cases or any related proceedings.
The firm will be paid at these hourly rates:
Partners $900 - $2,450
Counsel $310 - $2,335
Associates $685 - $1,015
Paralegals $400 - $550
The firm has agreed to provide the Committee a discount of 15
percent off its standard hourly rates.
In addition, the firm will seek reimbursement for expenses
incurred.
Bennett Silverberg, Esq., an attorney at Brown Rudnick, also
provided the following in response to the request for additional
information set forth in Section D of the Revised U.S. Trustee
Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Answer: Brown Rudnick has agreed to discount its standard hourly
rates by 15 percent. The firm will comply with the United States
Trustee's Fee Guidelines in connection with this engagement.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Answer: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Answer: No.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Answer: The committee will approve a budget and general staffing
plan in connection with Brown Rudnick's representation of the
committee.
Mr. Silverberg disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Bennett S. Silverberg, Esq.
Brown Rudnick LLP
Boston, MA 02111
Telephone: (212) 209-4924
Email: bsilverberg@brownrudnik.com
About Kal Freight
Established in 2014, Kal Freight Inc. is a trucking company that
offers a complete range of transportation and logistics services to
diverse industries across the United States. It has strategic
locations across the United States with extended distribution
warehouses and terminals in Fontana, Calif., Texas, New Jersey,
Indiana, Tennessee, Georgia, Arizona and Arkansas.
Kal Freight and its affiliates filed Chapter 11 petitions (Bankr.
S.D. Tex. Case No. 24-90614) on December 5, 2024, with $100 million
to $500 million in both assets and liabilities.
Judge Christopher M. Lopez oversees the case.
The Debtors tapped Pachulski Stang Ziehl & Jones, LLP as legal
counsel; Development Specialists, Inc. as interim management
services provider; and Benesch, Friedlander, Coplan & Aronoff LLP
as special transportation counsel. Stretto, Inc. is the Debtors'
claims and noticing agent.
KAL FREIGHT: Committee Taps Kane Russell Coleman as Co-Counsel
--------------------------------------------------------------
The official committee of unsecured creditors of Kal Freight Inc.
and its affiliates seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to employ Kane Russell Coleman
Logan PC as bankruptcy co-counsel.
The firm's services include:
(a) advise the Debtor with respect to its powers and duties in
the continued management and operation of its business and
property;
(b) advise and consult on the conduct of this Chapter 11
case;
(c) attend meetings and negotiations with representatives of
creditors and other parties-in-interest;
(d) take all necessary actions to protect and preserve the
Debtor's estate;
(e) prepare pleadings in connection with this Chapter 11
case;
(f) represent the Debtor in connection with obtaining
authority to use cash collateral and, to the extent applicable,
post-petition financing;
(g) advise the Debtor in connection with any potential sale of
assets;
(h) appear before the court and any appellate courts to
represent the interests of the Debtor's estate;
(i) take any necessary action on behalf of the Debtor to
negotiate, prepare, and confirm a Chapter 11 plan; and
(j) perform all other necessary legal services for the Debtor
in connection with the prosecution of this Chapter 11 case.
The firm's professionals' hourly rates are as follows:
Joseph Coleman (Director) $935
Charles Astor (Director) $700
Kyle Woodard (Director) $595
William Hotze (Senior Attorney) $585
JaKayla DaBera (Associate) $485
Michael Desmond (Associate) $375
In addition, the firm will seek reimbursement for expenses
incurred.
KRCL provides the following response to the request for information
set forth in Paragraph D.1. of the Appendix B Guidelines.
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Response: Not applicable, save and except effective with the
beginning of this engagement, on or about December 20, 2024, KRCL
charged its standard 2025 rates.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Response: The Committee and KRCL expect to work together to
develop a staffing plan for the Chapter 11 Cases, including a
division of labor between KRCL and Brown Rudnick, as co-counsel.
Mr. Ridulfo disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Joseph M. Coleman, Esq.
Kane Russell Coleman Logan P.C.
5151 San Felipe, Suite 800
Houston, TX 77056
Telephone: (713) 425-7400
Facsimile: (713) 425-7700
Email: mridulfo@krcl.com
About Kal Freight
Established in 2014, Kal Freight Inc. is a trucking company that
offers a complete range of transportation and logistics services to
diverse industries across the United States. It has strategic
locations across the United States with extended distribution
warehouses and terminals in Fontana, Calif., Texas, New Jersey,
Indiana, Tennessee, Georgia, Arizona and Arkansas.
Kal Freight and its affiliates filed Chapter 11 petitions (Bankr.
S.D. Tex. Case No. 24-90614) on December 5, 2024, with $100 million
to $500 million in both assets and liabilities.
Judge Christopher M. Lopez oversees the case.
The Debtors tapped Pachulski Stang Ziehl & Jones, LLP as legal
counsel; Development Specialists, Inc. as interim management
services provider; and Benesch, Friedlander, Coplan & Aronoff LLP
as special transportation counsel. Stretto, Inc. is the Debtors'
claims and noticing agent.
KB3 2275: Seeks Cash Collateral Access Until Aug. 23
----------------------------------------------------
KB3 2275 Century, LLC asked the U.S. Bankruptcy Court for the
Central District of California for authority to use cash collateral
through Aug. 23.
The cash collateral consists of rents generated by the company's
real property in Los Angeles, Calif.
Preferred Bank and Jorge Tobias Leal assert an interest in the cash
collateral. The bank is the first lienholder and is owed $895,925.
KB3 projects $10,200 in total income and $7,242 in total expenses
for one month.
A hearing on the matter is set for Feb. 25.
About KB3 2275 Century
KB3 2275 Century LLC a Los Angeles-based real estate company
operating from Avalon Boulevard.
KB3 2275 Century LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10237) on January 14,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Neil W. Bason handles the case.
The Debtor is represented by Onyinye N. Anyama, Esq., at Anyama Law
Firm, A Professional Corp, in Cerritos, California.
KINGDOM EMPOWERMENT: Taps Keller Williams Real Estate as Broker
---------------------------------------------------------------
Kingdom Empowerment International Ministry, doing business as
Kingdom Empowerment International Ministries, seeks approval from
the U.S. Bankruptcy Court for the Eastern District of Pennsylvania
to employ Keller Williams Real Estate as broker.
The Debtor needs a broker to advertise and market its property
located at 6632-36 Bustleton Avenue, Philadelphia, Pennsylvania.
The broker will receive a commission of 5 percent of the property's
gross sale price and agrees that one half of this may be
apportioned to a buyer's broker.
Brian Wallace, an associate real estate broker at Keller Williams
Real Estate, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Brian Wallace
Keller Williams Real Estate
2003 South Easton Road, Suite 108
Doylestown, PA 18901
Telephone: (512) 327-3070
About Kingdom Empowerment International Ministry
Kingdom Empowerment International Ministry is a Pennsylvania
non-profit corporation.
Kingdom Empowerment International Ministry filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
E.D. Pa. Case No. 24-14289) on Nov. 29, 2024, listing $1 million to
$10 million in both assets and liabilities. Margufta Bellevue,
president of Kingdom Empowerment International Ministry, signed the
petition.
Judge Patricia M. Mayer presides over the case.
Dimitri L. Karapelou, Esq., at Musi, Merkins, Daubenberger & Clark,
LLP represents the Debtor as legal counsel.
LAVISH LIFESTYLES: Seeks to Hire Mark S. Roher as Legal Counsel
---------------------------------------------------------------
Lavish Lifestyles Capital Investment Group, LLC seeks approval from
the U.S. Bankruptcy Court for the Southern District of Florida to
employ Mark S. Roher, PA, also known as, The Law Office of Mark S.
Roher, PA, as counsel.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents necessary in the administration of
the case;
(d) protect the interest of the Debtor in all matters pending
before the court; and
(e) represent the Debtor in negotiation with its creditos in
the preparation of a plan.
Mark Roher, Esq., disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Mark S. Roher, Esq.
Law Office of Mark S. Roher, PA
1806 N. Flamingo Road, Suite 300
Pembroke Pines, FL 33028
Telephone: (954) 353-2200
Email: mroher@markroherlaw.com
About Lavish Lifestyles Capital Investment Group
Lavish Lifestyles Capital Investment Group LLC is a Fort
Lauderdale-based real estate investment firm.
Lavish Lifestyles Capital Investment Group LLC sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No.
25-10320) on January 14, 2025. In its petition, the Debtor reports
estimated assets up to $50,000 and estimated liabilities between $1
million and $10 million.
The Law Office of Mark S. Roher, PA serves as the Debtor's counsel.
LEE INVESTMENT: Creditors to Get Proceeds From Liquidation
----------------------------------------------------------
Lee Investment Consultants, LLC, filed with the U.S. Bankruptcy
Court for the Northern District of Alabama a Plan of Liquidation
under Subchapter V dated January 22, 2025.
The Debtor intended to fund this plan from the liquidation of the
Debtor's assets and the operation of the Debtor's business.
Upon confirmation of the plan, all of the property of the estate
shall vest in the Debtor.
Class 6 consists of General Unsecured Claims. The Debtor estimates
unsecured claims as filed in the amount of $287,748.74. To this
amount will have to be added the amount deemed to be unsecured from
those claims filed or listed as priority and secured. The unsecured
creditors shall be paid from the net proceeds, after costs of sale,
pro rata with all other allowed unsecured claims, until paid in
full or no additional proceeds are available from sale of the
Debtor's assets.
Pursuant to Section 1192 of the Bankruptcy Code, the Debtor shall
continue to operate its business as a Debtor-in-Possession. The
Debtor will liquidate its real estate assets to fund this Plan
along with paying directly the debts secured by the Debtor's
automobiles.
The Debtor shall also pay the Trustee fee $9,800.00 through 48
monthly payments of $200.00 a month starting 30 days after
confirmation and the Debtor shall continue said $200.00 payments to
the Trustee until the Trustee's allowed expenses are paid in full.
A full-text copy of the Subchapter V Liquidating Plan dated January
22, 2025 is available at https://urlcurt.com/u?l=KZTvmJ from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Harry P. Long, Esq.
Law Offices of Harry P. Long, LLC
P.O. Box 1468
Anniston, AL 36202
Telephone: (256) 237-3266
Email: hlonglegal8@gmail.com
About Lee Investment Consultants
Lee Investment Consultants, LLC, a company in Gadsden, Ala., sought
relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code
(Bankr. N.D. Ala. Case No. 24-41078) on Sept. 11, 2024, with $1
million to $10 million in both assets and liabilities. Scott Lee,
president, signed the petition.
Judge James J. Robinson handles the case.
The Debtor is represented by Stacy Upton, Esq., at The Law Offices
of Harry P. Long, LLC.
LEFEVER MATTSON: Court OKs Deal to Use Fannie Mae's Cash Collateral
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California,
Santa Rosa Division, approved on Jan. 26 a stipulation between
Foxtail Pine, LP and its lender, Fannie Mae.
The stipulation authorized the use of the lender's cash collateral
for the period from Dec. 1, 2024 to Jan. 31, 2025, to pay the
expenses incurred from the operation and maintenance of the Sharis
Apartments, a multi-family property in Vallejo, Calif., owned by
Foxtail.
As protection, Fannie Mae was granted a replacement lien on all
property owned by Foxtail, including all rents generated by the
Vallejo property prior to the petition date.
Foxtail is an affiliate of LeFever Mattson that filed for Chapter
11 protection on Sept. 12, 2024.
About LeFever Mattson
LeFever Mattson, a California corporation, manages a large real
estate portfolio. Timothy LeFever and Kenneth W. Mattson each owns
50% of the equity in the company. Based in Citrus Heights, Calif.,
LeFever Mattson manages a portfolio of more than 200 properties,
comprised of commercial, residential, office, and mixed-use real
estate, as well as vacant land, located throughout Northern
California, primarily in Sonoma, Sacramento, and Solano Counties.
It generates income from the properties through rents and use the
proceeds to fund its operations.
LeFever Mattson and its affiliates filed voluntary Chapter 11
petitions (Bankr. N.D. Calif. Lead Case No. 24-10545) on September
12, 2024. At the time of the filing, LeFever Mattson listed $100
million to $500 million in assets and $10 million to $50 million in
liabilities.
Judge Charles Novack oversees the cases.
Thomas B. Rupp, Esq., at Keller Benvenutti Kim LLP represents the
Debtors as counsel. Kurtzman Carson Consultants, LLC is the
Debtors' claims and noticing agent.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
LEFEVER MATTSON: Plan Exclusivity Period Extended to May 30
-----------------------------------------------------------
Judge Charles Novack of the U.S. Bankruptcy Court for the Northern
District of California extended Lefever Mattson and its affiliates'
exclusive periods to file a plan of reorganization and obtain
acceptance thereof to May 30 and July 31, 2025, respectively.
As shared by Troubled Company Reporter, 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.
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.
LEROUX CREEK: Taps RubinBrown LLP as Accounting Professional
------------------------------------------------------------
Leroux Creek Food Corporation, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Colorado to employ RubinBrown,
LLP as accounting professionals.
The firm will prepare and file the Debtor's state and federal tax
returns, including overdue tax filings and to provide expert
witness services in any avoidance or other litigation filed in
connection with this bankruptcy case.
The firm will bill these hourly rates:
Partner $325 to $675
Manager $275 to $500
Senior Accountant $225 to $275
Staff Accountant $150 to $225
Administrative $160
Stephanie Drew, a partner at RubinBrown, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Stephanie J. Drew, CPA
RubinBrown, LLP
1900 16th Street, Suite 1700
Denver, CO 80202
Tel: (303) 952-1279
Email: stephanie.drew@rubinbrown.com
About Leroux Creek Food Corporation, LLC
Leroux Creek Food Corporation, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo.
Case No. 24-15015) on August 27, 2024, listing $1 million to $10
million in both assets and liabilities. The petition was signed by
Edward Tuft as president.
Jeffrey A. Weinman, Esq. at ALLEN VELLONE WOLF HELFRICH & FACTOR,
P.C. represents the Debtor as counsel.
LI-CYCLE HOLDINGS: Spring Creek, 2 Others Report Stakes
-------------------------------------------------------
Spring Creek Capital, LLC disclosed in a Schedule 13G filed with
the U.S. Securities and Exchange Commission that as of January 16,
2025, it and its affiliated entities -- Wood River Capital, LLC and
Koch, Inc. -- beneficially owned shares of Li-Cycle Holdings
Corp.'s common shares.
As of the close of business on January 16,
(a) Spring Creek Capital, LLC beneficially owned 6,720 shares,
representing 0.02% of the 35,603,217 common shares, no par value,
of Li-Cycle Holdings Corp., outstanding as of January 16, 2025, as
provided to the Reporting Persons by the Company.
(b) Wood River Capital, LLC beneficially owned 1,976,654
shares, which represents 1,976,654 Public Shares which may be
issuable to Wood River upon conversion of the unsecured convertible
note issued in the original principal amount of $100,000,000
pursuant to that certain Note Purchase Agreement entered into on
September 29, 2021, between the Company and Spring Creek based on
the outstanding principal amount of $133,760,217, as of December
31, 2024, without giving effect to accrued and unpaid interest,
which may be payable in-kind at the Company's option at subsequent
semi-annual interest payment dates. This ownership represents 5.26%
of the 37,579,871 Public Shares deemed outstanding as of January
16, 2025, including:
(i) 35,603,217 Public Shares outstanding as of January
16, 2025, as provided to the Reporting Persons by the Company, and
(ii) 1,976,654 Public Shares issuable upon conversion of
the Convertible Notes.
(c) Koch, Inc. beneficially owned 1,983,374 shares, which
represents:
(i) 1,976,654 Public Shares issuable upon conversion of
the Convertible Notes beneficially owned by Wood River and
(ii) 6,720 Public Shares held by Spring Creek.
These Company securities may be deemed to be beneficially owned by
Koch, Inc. by virtue of Koch, Inc.'s indirect beneficial ownership
of Spring Creek and Wood River.
This ownership represents 5.28% of the 37,579,871 Public Shares
deemed outstanding as of January 16, 2025, including:
(i) 35,603,217 Public Shares outstanding as of January
16, 2025, as provided to the Reporting Persons by the Company, and
(ii) 1,976,654 Public Shares issuable upon conversion of
the Convertible Notes.
The reporting persons may be reached at:
Raffaele G. Fazio
Vice President and Secretary
Spring Creek Capital, LLC
4111 East 37th Street
North, Wichita, Kansas 67220
Tel: 316-828-8310
A full-text copy of Spring Creek's SEC Report is available at:
https://tinyurl.com/3spmyez4
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.
LIBERATED BRANDS: Case Summary & 30 Largest Unsecured Creditors
---------------------------------------------------------------
Lead Debtor: Liberated Brands LLC
1740 Monrovia Ave
Costa Mesa CA 92627
Business Description: Liberated Brands LLC, together with its
Debtor and non-Debtor affiliates, is a
prominent player in the sport, outdoor, and
lifestyle apparel industry. The Company has
sold products in partnership with many
premier brands, including Volcom, Billabong,
Spyder, Quiksilver, and Roxy. As an
omnichannel apparel licensee with deep-
rooted expertise in trend forecasting, brand
cultivation, and sports marketing, the
Company has attracted loyal customers
worldwide. The Company's products are sold
in more than 100 countries through select
department and specialty stores, in over 400
of its operated retail stores, and in select
online stores.
Chapter 11 Petition Date: February 2, 2025
Court: United States Bankruptcy Court
District of Delaware
Nine affiliates that simultaneously filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Liberated Brands LLC (Lead Case) 25-10168
Liberated Brands USA LLC 25-10169
Liberated-Spyder LLC 25-10170
Liberated AX LLC 25-10171
Liberated Brands International, Inc. 25-10172
Boardriders Retail, LLC 25-10173
Volcom, LLC 25-10174
Volcom Retail Outlets, LLC 25-10175
Volcom Retail, LLC 25-10176
Judge: Hon. J Kate Stickles
Debtors'
General
Bankruptcy
Counsel: Joshua A. Sussberg, P.C.
Matthew C. Fagen, P.C.
Zachary R. Manning, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, New York 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
Email: joshua.sussberg@kirkland.com
matthew.fagen@kirkland.com
zach.manning@kirkland.com
- and -
Robert Jacobson, Esq.
333 West Wolf Point Plaza
Chicago, Illinois 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
Email: rob.jacobson@kirkland.com
Debtors'
Co-Bankruptcy
Counsel &
Conflicts
Counsel: Domenic E. Pacitti, Esq.
Michael W. Yurkewicz, Esq.
KLEHR HARRISON HARVEY BRANZBURG LLP
919 N. Market Street, Suite 1000
Wilmington, Delaware 19801
Tel: (302) 426-1189
Fax: (302) 426-9193
Email: dpacitti@klehr.com
myurkewicz@klehr.com
- and -
Morton R. Branzburg, Esq.
1835 Market Street, Suite 1400
Philadelphia, Pennsylvania 19103
Tel: (215) 569-3007
Fax: (215) 568-6603
Email: mbranzburg@klehr.com
Debtors'
Financial
Advisor: ALIXPARTNERS, LLC
Debtors'
Claims/
Noticing
Agent: STRETTO
Estimated Assets
(on a consolidated basis): $100 million to $500 million
Estimated Liabilities
(on a consolidated basis): $100 million to $500 million
The petitions were signed by Todd Hymel as chief executive
officer.
A full-text copy of the Lead Debtor's petition is available for
free on PacerMonitor at:
https://www.pacermonitor.com/view/6NC37CI/Liberated_Brands_LLC__debke-25-10168__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Ningbo Jehson Textiles Trade Payable $3,196,055
13th Floor, Block A1, Li Yuan, Shang
Du Bldg #203 Lantian Rd.
Ningbo, 315012
China
Jehson Cen
Tel: 86-574-27919777
Fax: 86-574-27919672
Email: cen@jehsontex.com
emily@jehsontex.com
2. Unis, LLC Trade Payable $2,040,897
218 Machlin Court
Walnut, CA 91789
Sam Warheit
Tel: 412-552-4869
Email: sam.warheit@unisco.com
3. Dongyang Yilong Trade Payable $1,799,732
Garments Co Ltd
No. 88 Huaiwan Route, Weishan
Industrial Zone, Weishan Town
Dongyang, 322109
China
Jette Wang
Tel: 0086-0579-89317118
Email: jettewang@yilong-cn.com
4. Fedex Trade Payable $1,794,808
2601 Main St. Suite 1050
Irvine, CA 92614
Joseph Chang
Tel: 909-816-3584
Email: jospeh.chang@fedex.com
5. Gramtech Knit, Dying, Trade Payable $1,568,798
Fin. & Garm. Ind Ltd
Abc Heritage (4th & 5th Floor, 2 & 4
Jashimuddin Avenue, Sector-3, Uttara
Dhaka, 1230
Bangladesh
Hasan Mahmud
Tel: 880 1 409261899
Email: h.mahmud@team.com.bd
6. Wuxi Shengri General Trade Payable $1,452,847
Merchandise Co.,Ltd
No.20 Chunhui Road District,
Jiangsu, 214000
China
Andrew Lan
Tel: 15006181533
Email: lanjunfei@nishowx.com
7. MSP Group Inc. Trade Payable $1,386,644
206 W. 140th St.
Los Angeles, CA 90061
Aneez Lakha & Johnny Lim
Tel: 310-660-0022
Email: aneezlakha@gmail.com
johnny@mspgroupinc.com
8. Everglory Int Grp App Inc Trade Payable $1,267,359
509 Chengxin Avenue,Jiangning
Development Zone, Nanjing
Jiangsu, 211102
China
May Zhou
Tel: 86-25-52096587
Email: may_zhou@ever-glory.com.cn
9. First Insurance Funding Insurance $1,260,782
450 Skokie Blvd, Ste 1000 Premium
Northbrook, IL 60062-7917
Dezzire Nazario
Tel: 847-236-4309
Email: dezzire.nazario@firstinsurancefunding.com
10. Jehsontex Hongkong Limited Trade Payable $1,155,878
13th Floor, Block A1, Li Yuan, Shang
Du Bldg #203 Lantian Rd.
Ningbo, 315012
China
Jehson Cen
Tel: 86-574-2791 9777
Email: cen@jehsontex.com
emily@jehsontex.com
11. Alpha Source Trade Payable $1,023,679
7711 Amigos Avenue, Ste. E
Downey, CA 90242
Keith Lee
Tel: 310-515-5560
Email: keith@alphasourceco.com
12. O5 BNG LLC Trade Payable $1,000,509
31 W 34th St.
New York, NY 10001
Fritz Winans
Email: fwinans@o5group.com
13. Team Manufacturing Company Ltd Trade Payable $982,936
Abc Heritage (4th & 5th Floor, 2 & 4
Jashimuddin Avenue, Sector-3,
Uttara C/
Dhaka, 1230
Bangladesh
Hasan Mahmud
Tel: 880 1 409261899
Email: h.mahmud@team.com.bd
14. Infinity Apparels Limited Trade Payable $966,365
Room 1701, Titan Tower, #535
Tiantong South Road
Ningbo, 315199
China
Robert Zhang
Tel: 8613717553502
Email: robertzhang@worldyenb.com
15. Lucky Unique Trade Payable $921,745
Enterprise Co., Ltd.
No. 17, Jianye Rd., Erzhen VIl.
Tainan, 72046
Taiwan
Jocelyn Chen
Email: jocelynchen@luckytext.com.tw
16. Yat Fung Intl Trade Payable $915,159
Industrial Ltd
Unit 803, Ping Fai Industrial, Bldg,
312 Un Chau Street, Cheung Sha
Wan, Cheung Sha Wan
Kowloon, 999077
Hong Kong
Michelle Lee
Tel: 852-31881445
Email: michelle@yfswimwear.com
17. Sheico (Thailand) Co., Ltd Trade Payable $904,970
240/23 Ratchadaphisek Road 15
Floor Ayodhaya Tower
Bangkok, 10310
Thailand
Rebecca Yang
Tel: 886 3- 965-6699
Email: rebecca_yang@sheico.com.tw
18. Flexfit LLC Trade Payable $884,481
625 Columbia St.
Brea, CA 92821
Tel: 714-882-3172
Fax: 714-447-9475
Email: austin@flexfit.com
19. Ningbo Isun Fashion Co., Ltd Trade Payable $860,328
No. 77 Dongguan Road, East
Fenghua Industrial Development Zone,
Ningbo, 315500
China
Brooke Bao
Tel: 86-574-88950183
Email: brooke@nbisun.com
20. Liu Chiao Industrial Co., Ltd. Trade Payable $809,968
No. 25, Lane 83, Huaciao St.
Chang Hua Hsien, 523946
Taiwan
Eric
Tel: 852-24871145
Email: emily@liuchiao.com.tw
21. Eastman Exports Global Clothing Trade Payable $790,999
(P) Ltd.
5/591, Sri Lakshmi Nagar,
Pitchampalayam Purdur
Tirupur, 641603
India
Antony Eme
Tel: 91-421-430-1234
Fax: 91-421-4301205
Email: antony@eastmanexports.com
22. Centric Brands LLC & Affiliates Trade Payable $750,069
350 5th Ave 6th Floor
New York, NY 10118
Andrew Rabinowitz
Email: arabinowitz@centricbrands.com
23. Google Inc. Trade Payable $747,080
1600 Amphitheatre Pkwy
Mountain VIew, CA 94043
Philipp Schindler
Email: philipps@google.com
24. Cortech LLC Trade Payable $699,311
710 Morgan Falls RoadAtlanta, GA 30350
Mariana Gutierrez
Tel: 714-248-5132
Email: mgutierrez@jobsrus.com
25. Dalian Jinzhijie Trade Payable $683,861
Garments Co. Ltd
No. 363 Building of XIaoyanjia
Hongta VIllage, Yongzheng Street,
Jinzhou District
Dalian, 116100
China
Rocky Han
Fax: 86-411-87694952
Email: rocky.han@jinzhijie.com.cn
26. B-Heim Co. Ltd. Trade Payable $655,471
1302 Kolon Digital Tower Billant II
222-8 Guro3-Dong Guro-Gu
Seoul, Korea
Sul Ki Noh
Email: skngee@bheim.co.kr
27. Tanya Impex Trade Payable $645,898
W-18 & 19, Sector -11
Noida, 201301
India
Sunil Grover
Tel: 91-1204504704
Email: sunilgrover@tanyaimpex.com
28. Wai Leng Garment Factory Trade Payable $629,466
Rue De Francisco Xavier, Pereira
Nos 137-145, Industrial Pou Fung 5,
Andarb
Macau Mo, 999078,
China
May Zhou
Tel: 853-62866880
Email: angeline@waileng.com.mo
29. Meta Platforms, Inc. Trade Payable $607,525
1 Meta Way
Menlo Park, CA 94025
Justin Osofsky
Fax: +353 (0)1 6530737
Email: justinosofsky@fb.com
30. Kwong Platforms, Inc. Trade Payable $566,012
16F., No. 105, Sec. 2, Dunhua S. Rd.
Taipei City 106
Taiwan
Jenny Hsieh
Fax: +86-2-2709-2550
Email: jenny.hsieh@klf-group.com
LIBERATED BRANDS: Files Chapter 11, to Close 100+ U.S. Locations
----------------------------------------------------------------
Liberated Brands LLC filed voluntary petitions for relief under
Chapter 11 of the U.S. Bankruptcy Code to implement an orderly
monetization and disposition of its businesses.
The Company, which has 124 retail locations in the U.S., has been
in the process of transitioning its brand licenses to new license
holders as part of a management transition to ensure continuity for
the brands and their success moving forward.
This filing does not impact the future of the brands, as they have
already transitioned to new, well-capitalized partners who are
actively investing in their growth and long-term success.
Liberated's 100-plus stores in the U.S. will remain open and
continue serving customers as the company begins its efforts to
effectuate the closure of its U.S. retail locations. Through the
filing of customary motions with the Court, Liberated intends to
uphold its commitments to customers, employees, and partners,
including continued payment of employee wages and benefits. The
Chapter 11 process will be financed by JP Morgan.
A liquidation sale process, conducted by Gordon Brothers Group, has
commenced at Liberated's U.S. retail locations. Following the
liquidation, Liberated's 100-plus retail locations in the U.S. will
be closing. The status of the company's nine retail locations in
Hawaii is currently being negotiated.
"The Liberated team has worked tirelessly over the last year to
propel these iconic brands forward, but a volatile global economy,
consumer spending changes amid a rising cost of living, and
inflationary pressures have all taken a heavy toll," according to
Liberated Brands. "Despite this difficult change, we are
encouraged that many of our talented associates have found new
opportunities with other license holders that will carry these
great brands into the future."
About Liberated Brands
Liberated is in the sport, outdoor, and lifestyle apparel industry.
Liberated offers its customers access to products under
high-quality brands such as Volcom, Billabong, Quiksilver, Spyder,
RVCA, Roxy, and Honolua, in its 124 retail locations across the
United States and through other channels. As an omnichannel
apparel licensee with deep-rooted and unique expertise in trend
forecasting and brand development, Liberated has attracted loyal
customers in more than 100 countries. Liberated operates regional
headquarters in North America, Europe, Japan, and Australia.
On Feb. 2, 2025, Liberated Brands LLC and eight affiliated debtors
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10168).
The cases are pending before Honorable Judge J. Kate Stickles.
Liberated has tapped Kirkland & Ellis, LLP and AlixPartners LLP to
facilitate the Chapter 11 restructuring process. Stretto is the
claims agent.
JP Morgan has retained Morgan, Lewis & Bockius LLP and Berkeley
Research Group, LLC.
LIBERATED BRANDS: Files for Chapter 11 After ABG Pulls Licenses
---------------------------------------------------------------
Liberated Brands LLC, the former licensing arm for Authentic Brands
Group's collection of action sports lifestyle brands, has filed for
Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for
the District of Delaware.
The Company's foreign entities including its Australian, European,
Japanese, and Canadian entities are not Debtors in the chapter 11
case.
The Chapter 11 filing comes after Authentic in December pulled its
brands from Liberated and re-assigned them to other partners after
Liberated failed to make royalty payments.
A global leader in the sport, outdoor, and lifestyle apparel
industry, Liberated offers its customers access to products under
high-quality brands such as Volcom, Billabong, Quiksilver, Spyder,
RVCA, Roxy, and Honolua, in its 124 retail locations across the
United States and through other channels. As an omnichannel
apparel licensee, Liberated has attracted loyal customers in more
than 100 countries. Liberated operates regional headquarters in
North America, Europe, Japan, and Australia.
Headwinds
Todd Hymel, founder and CEO of Liberated Brands, explains in court
filings that notwithstanding the Company's impressive portfolio of
brands, loyal customer base, and unique expertise in brand
marketing and support, the Debtors have faced a series of major
headwinds and challenges. Before these headwinds manifested, and
shortly after Liberated was formed, the Company experienced a sharp
increase in product demand during the COVID-19 pandemic, largely
due to increased outdoor leisure time and governmental stimulus
support provided to customers. Heightened demand, coupled with a
series of license acquisitions, resulted in Liberated's revenue
increasing significantly from $350 million in 2021 to $422 million
in 2022 -- a 20% increase year over year. In late 2023, seeking to
keep up with expanding opportunities in the outdoor apparel space
and pursuing new consumer segments, Liberated acquired licenses and
retail assets for several major outdoor apparel brands, including
Quiksilver, Billabong, Roxy, RVCA, Honolua, and Boardriders, which
expanded its operations beyond its core geographical area of North
America to Australia, New Zealand, Thailand, and Indonesia.
Macroeconomic issues, including a rapid and dramatic rise in
interest rates, persistent inflation, supply chain delays, a
decline in customer demand well below the historical trendline,
shifting consumer preferences, and substantial fixed costs placed
significant pressure on Liberated's revenue and cost structure.
Liberated also encountered duplicative fixed costs associated with
transitioning the legacy Boardriders infrastructure to
Liberated’s processes. As a result of these headwinds, Liberated
faced significant liquidity challenges in 2024.
Chapter 11 Filing
Faced with mounting financial and operational challenges, in
November 2024, Liberated determined that it needed to explore
alternative options to maximize value for its stakeholders in the
event of a potential downside scenario, and hired AlixPartners, LLC
and Kirkland & Ellis LLP. Liberated also appointed an independent
and disinterested manager, Mark Hootnick of MSH Advisory LLC, to
its board. Also in November 2024, Liberated divested its
loss-making North American Spyder business through a transaction
with Q4D LLC.
In December 2024, Liberated's North American license rights for its
wholesale operations under the Volcom, RVCA, and Billabong brands
were terminated as a result of Liberated's default under the
associated licenses. In connection with this termination,
Liberated's United States and Canadian wholesale and e-commerce
license rights with respect to those brands were transitioned to
new operators, with Liberated retaining a limited right to sell
through prior-season branded inventory. Compounding an already
dire liquidity situation, towards the end of December 2024 and
continuing into January 2025, vendors began holding back in-transit
inventory as well as pending inventory shipments for the spring
2025 season, reducing the Debtors' borrowing base under their
Prepetition ABL Facility by more than $10.0 million.
Due to their business and financial issues, and coupled with the
Debtors' reduced borrowing base, JPMorgan Chase Bank, N.A., the
agent under the Prepetition ABL Facility (the "Prepetition ABL
Agent"), implemented reserves and the Debtors became over-advanced
under their Prepetition ABL Facility by $3.5 million around
mid-January 2025 and $6.0 million in late-January 2025. Faced with
drastically diminished prospects to operate as a going-concern, and
without access to cash receipts due to the over-advance under the
Prepetition ABL Facility, the Debtors accelerated negotiations with
the Prepetition ABL Agent regarding further advances under the
Prepetition ABL Facility and a consensual and value-maximizing
disposition of the Debtors' assets. Amid these negotiations, the
Debtors retained Gordon Brothers Retail Partners, LLC as their
exclusive, independent consultant to, among other things, assist
the Debtors with marketing, selling, and otherwise disposing of
certain of the Debtors' United States retail assets, including
certain merchandise sold in specified retail locations.
Following extensive arm's-length negotiations, the Debtors and the
Prepetition ABL Agent reached an agreement for the Prepetition ABL
Agent to provide a $35.0 million new-money DIP ABL Facility to fund
the Chapter 11 Cases and the Debtors' ongoing efforts to monetize
their assets in an orderly, efficient, and value-maximizing
process. The Debtors intend to promptly file a chapter 11 plan
that will enable the Debtors to conclude the orderly and
expeditious monetization of their assets and make distributions to
creditors.
As of the Petition Date, the Debtors have $98.0 million in
principal amount of total funded debt obligations, and $3.9 million
in cash. Funded debt is comprised of $83 million outstanding under
the Prepetition ABL Facility with JPMorgan Chase Bank, and $15
million under a Promissory Note issued to QS Holdings SARL.
DIP Financing From JPM
The Debtors seek approval of entry into a debtor-in-possession
financing facility to provide funding throughout the Chapter 11
Cases, in the form of a $35.0 million new-money senior secured
superpriority debtor-in-possession asset-based financing facility
(the "DIP ABL Facility"), $25.0 million of which shall be available
upon entry of an interim order.
The DIP ABL Facility will be provided by JPMorgan Chase Bank, N.A.,
the lender under the Prepetition ABL Facility, who has also agreed
to the Debtors’ use of cash collateral in the Chapter 11 cases.
The DIP Credit Facility requires the Debtors to obtain confirmation
of a Chapter 11 Plan within 108 days from the Petition Date.
Anticipated Path Forward
The Debtors filed Chapter 11 cases to implement an orderly
monetization process along several parallel paths, including a
liquidation and wind-down of the Company's North American business
and one or more sales of the Company's non-U.S. businesses,
including its Australian, European, Japanese, and Canadian
entities, either on a going-concern or liquidation basis. To that
end, the Debtors filed the Store Closing Motion and the Bidding
Procedures Motion to achieve these objectives. With respect to the
Debtors' United States business, the Debtors anticipate liquidating
retail inventory through store closing sales and wholesale
inventory through a Company-managed process. The Debtors also
intend to promptly file a chapter 11 plan and move expeditiously
towards confirmation and consummation of the plan to make
distributions to creditors.
About Liberated Brands
Liberated is in the sport, outdoor, and lifestyle apparel industry.
Liberated offers its customers access to products under
high-quality brands such as Volcom, Billabong, Quiksilver, Spyder,
RVCA, Roxy, and Honolua, in its 124 retail locations across the
United States and through other channels. As an omnichannel
apparel licensee with deep-rooted and unique expertise in trend
forecasting and brand development, Liberated has attracted loyal
customers in more than 100 countries. Liberated operates regional
headquarters in North America, Europe, Japan, and Australia.
Liberated was founded in 2019 by the former management team of
Volcom contemporaneously with Kering Kering S.A.'s sale of Volcom's
intellectual property rights to Authentic Brands. Volcom, a modern
lifestyle clothing company rooted in skateboarding, surfing and
snowboarding, was purchased by Authentic, a global brand
development company, on April 19, 2019, in an effort to expand the
brands' platform.
On Feb. 2, 2025, Liberated Brands LLC and eight affiliated debtors
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10168).
The cases are pending before Honorable Judge J. Kate Stickles.
Liberated has retained Kirkland & Ellis, LLP and AlixPartners LLP
to facilitate the Chapter 11 restructuring process. Stretto is the
claims agent.
JP Morgan has retained Morgan, Lewis & Bockius LLP and Berkeley
Research Group, LLC.
LIBERATED BRANDS: Seeks Chapter 11 Protection in Delaware
---------------------------------------------------------
Jonathan Randles of Bloomberg News reports that Liberated Brands,
which previously operated skateboard and surf-inspired retail
brands like Quiksilver, Billabong, and Volcom, has filed for
bankruptcy due to increasing competition from fast fashion
retailers.
The company sought court protection in Delaware, announcing plans
to shut down its stores and cease North American operations.
Operating under a licensing agreement with Authentic Brands Group
LLC, Liberated Brands also intends to sell its international
businesses. It has already closed its corporate offices and laid
off nearly 1,400 employees.
About Liberated Brands LLC
Liberated Brands LLC is a global leader in the sport, outdoor, and
lifestyle apparel industry, boasting a 30-year history of
connecting with consumers.
Liberated Brands LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-10168) on February 2,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
The Debtor is represented by Domenic E. Pacitti, Esq., and Michael
W. Yurkewicz, Esq., at Klehr Harrison Harvey Branzburg LLP, in
Wilmington, Delaware.
LIBERATED BRANDS: To Sell De Minimis Assets for $1.5MM
------------------------------------------------------
Liberated Brands LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware, to sell, use, swap,
or transfer certain assets, including any rights of its De Miminis
Assets, to a single buyer or group of related buyers with an
aggregate sale price equal to or less than $1,500,000.
The Debtor is a global leader in the sport, outdoor, and lifestyle
apparel industry. It has sold products in partnership with many
premier brands, including Volcom, Billabong, Spyder, Quiksilver,
and Roxy. As an omnichannel apparel licensee and a deep-rooted
expertise in trend forecasting, brand cultivation, and sports
marketing, the Company has attracted loyal customers worldwide. The
Company’s products are sold in more than 100 countries through
select department and specialty stores, in over 400 of its operated
retail stores, and in select online stores.
The Debtors intend to sell large parcels of their assets through
the procedures set forth in the Bidding Procedures Motion,
including through an auction. However, to the extent there are De
Minimis Assets that are not sold through the sale process
contemplated by the Bidding Procedures Motion, the Debtors seek
authority to sell, transfer, or abandon such De Minimis Assets
outside of the ordinary course of business in any individual
transaction or series of related transactions
The Debtor believes that the periodic sales of De Minimis Assets
are a necessary element of the Debtors’ chapter 11 cases and an
orderly winddown process, which would maximize the value of the
Debtors' estates for the benefit of all stakeholders. The Debtors
have a limited window of time in which they may enter into
agreements or take advantage of opportunities to sell, transfer, or
otherwise monetize De Minimis Assets. The cost, delay, and
publicity associated with seeking individual Court approval of each
De Minimis Asset Transaction could eliminate or substantially
diminish the economic benefits of the transactions.
The Debtors propose to use, sell, swap, or transfer each of the De
Minimis Assets on the best terms available, taking into
consideration the exigencies and circumstances in each such
transaction under the following procedures:
a. With regard to the uses, sales, or transfers of De Minimis
Assets in any individual transaction or series of related
transactions to a single buyer or group of related buyers with a
total transaction value as calculated within the Debtors’
reasonable and good faith discretion, less than or equal to
$1,500,000:
b. With regard to the uses, sales, or transfers of De Minimis
Assets in any individual transaction or series of related
transactions to or from a single buyer or group of related buyers
with a total transaction value as calculated within the Debtors'
reasonable and good faith discretion, greater than $1,500,000 and
less than or equal to $7,500,000:
The Debtors believe that the establishment of the foregoing
procedures is desirable and in the best interests of the Debtors’
estates, their creditors, and other parties.
About Liberated Brands LLC
Liberated Brands LLC is a global leader in the sport, outdoor, and
lifestyle apparel industry. It has sold products in partnership
with many premier brands, including Volcom, Billabong, Spyder,
Quiksilver, and Roxy. As an omnichannel apparel licensee and a
deep-rooted expertise in trend forecasting, brand cultivation, and
sports marketing. It has attracted loyal customers worldwide and
its products are sold in more than 100 countries through select
department and specialty stores, in over 400 of its operated retail
stores, and in select online stores.
Liberated Brands LLC and its affiliates filed voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.De.
Case No. 25-10168) on February 2, 2025.
LINX OF LAKE: Seeks Approval to Hire Davie Kaplan as Accountant
---------------------------------------------------------------
Linx of Lake Mary, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Davie Kaplan,
CPA, PC as its accountant.
The firm will prepare the Debtor's 2024 tax returns and tax
consulting services.
The firm's services will be based upon the amount of time required
at standard billing rates plus out-of-pocket expenses.
Brian Sauers, a certified public accountant at Davie Kaplan,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Brian M. Sauers, CPA
Davie Kaplan, CPA, PC
100 Meridian Centre Blvd., Suite 200
Rochester, NY 14618
Telephone: (585) 454-4161
Facsimile: (585) 454-2573
About Linx of Lake Mary LLC
Linx of Lake Mary LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06781) on
December 13, 2024. In the petition signed by Patrick Schneider,
manager, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Grace E. Robson oversees the case.
The Debtor tapped Justin M. Luna at Latham, Luna, Eden & Beaudine,
LLP as counsel and Brian M. Sauers, CPA, at Davie Kaplan, CPA, PC
as accountant.
LITTLE DOLLAR: Seeks Subchapter V Bankruptcy in Georgia
-------------------------------------------------------
On February 1, 2025, Little Dollar Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Georgia.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Little Dollar Inc.
Little Dollar Inc. operates in the real estate sector.
Little Dollar Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-51064) on February 1,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by:
Brad Fallon, Esq.
FALLON LAW PC
1201 W. Peachtree St. NW, Suite 2625
Atlanta, GA 30309
Tel: (404) 849-2199
E-mail: brad@fallonbusinesslaw.com
M DESIGN: Gets Final OK to Use Cash Collateral
----------------------------------------------
M Design Village, LLC received final approval from the U.S.
Bankruptcy Court for the District of New Jersey to use cash
collateral.
The company requires the use of cash collateral to meet its cash
needs and for other purposes approved by Versant Funding, LLC, a
secured creditor.
The final order signed by Judge Mark Hall granted the secured
creditor replacement liens on all property owned by the company and
a super-priority administrative expense claim senior to all other
claims against the company.
Versant Funding agreed to defer post-petition monthly interest
payments between $112,500 and $116,250 per month, which deferment
will be addressed under a plan of reorganization for the company or
sooner. Meanwhile, M Design Village agreed to maintain inventory
levels at approximately $4 million.
The company's authority to use cash collateral terminates upon
dismissal or conversion of its Chapter 11 case to one under Chapter
7; the appointment of a Chapter 11 trustee; failure of the company
to comply with the final order; or the entry of a court order
modifying, staying, reversing or vacating the final order without
the prior consent of the secured creditor.
The final order approved the company's entry into a post-petition
factoring arrangement with Versant Funding and authorized the sale
of its accounts receivable to the secured creditor.
As of the petition date, M Design Village owed the secured creditor
approximately $5.9 million under their factoring agreement and
approximately $7.5 million under a 2019 loan agreement.
About M Design Village
M Design Village, LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-21406) on November 18,
2024, listing between $10 million and $50 million in both assets
and liabilities.
Judge Mark Edward Hall handles the case.
The Debtor is represented by:
Anthony Sodono, III, Esq.
Mcmanimon, Scotland & Baumann, LLC
75 Livingston Avenue, Second Floor
Roseland, NJ 07068
Tel: 973-622-1800
Email: asodono@msbnj.com
MALIA REALTY: Seeks to Hire Arrington Owoo as Special Counsel
-------------------------------------------------------------
Malia Realty, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Georgia to employ Arrington Owoo, PC as
special counsel.
The firm will render include any and all matters reasonable and
necessary to effectuate the legal representation of the Debtor in
the litigation styled Malia Realty, LLC v. Lending One, LLC, MMG
Management, LLC, Toorak Capital Partners LLC, and Newrez, LLC d/b/a
Shellpoint Mortgage Servicing, Case No. 2023-CV-386038, and the
claims against MMG.
The firm will be paid at these hourly rates:
Robert Arrington, Attorney $450
Latif Odoula-Owoo, Attorney $450
Paralegals $200
Administrative Staff $150
Mr. Arrington disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Robert Arrington, Esq.
Arrington Owoo, PC
1230 Peachtree St., Ste. 1900
Atlanta, GA 30309
Telephone: (404) 549-6771
About Malia Realty LLC
Malia Realty LLC is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)).
Malia Realty sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ga. Case No. 24-61684) on November 1, 2024, with
$1 million to $10 million in both assets and liabilities.
Judge Barbara Ellis-Monro oversees the case.
The Debtor tapped William Rountree, Esq., at Rountree, Leitman,
Klein & Geer, LLC as bankruptcy counsel and Robert Arrington, Esq.,
at Arrington Owoo, PC special counsel.
MAXIMUS SUPPLY: Court OKs Continued Access to Cash Collateral
-------------------------------------------------------------
Maximus Supply Chain Holdings, LLC received sixth interim approval
from the U.S. Bankruptcy Court for the Northern District of
Indiana, Hammond Division at Lafayette, to continue to use cash
collateral.
The sixth interim order authorized the company to use cash
collateral for operating expenses in accordance with its budget,
with a permitted aggregate variance of not greater than 10% on a
monthly basis.
The company's 13-week cash forecast shows anticipated total
expenses of $3,822,732.
The court will hold a status conference on April 15.
About Maximus Supply Chain Holdings
Maximus develops innovative solutions and products servicing a
variety of industries including automotive, commercial vehicle,
agricultural equipment, RVs, and power manufacturing industries.
Maximus Supply Chain Holdings, LLC and its affiliates filed their
voluntary petitions for Chapter 11 protection (Bankr. N.D. Ind.
Lead Case No. 24-40167) on June 25, 2024, listing as much as $0 in
both assets and liabilities. Sam Bazzi, president and chief
executive officer, signed the petitions.
Judge Robert E. Grant oversees the cases.
The Debtor is represented by:
Sarah L. Fowler
Blackwell, Burke & Ramsey, P.C.
Tel: 317-533-7869
Email: sfowler@bbrlawpc.com
MERCURITY FINTECH: Wilfred Daye Joins as CSO and Chaince CEO
------------------------------------------------------------
Mercurity Fintech Holding Inc. announced that effective Feb. 1,
2025, Wilfred Daye will be joining the Company as chief strategy
officer and will also serve as the CEO of JVDA, LLC, a subsidiary
of MFH and doing business as "Chaince Securities".
In his dual leadership roles, Mr. Daye will focus on driving
strategic innovation and operational excellence across both
organizations. As chief strategy officer at MFH, Mr. Daye will
lead the company's efforts in global expansion and digital asset
adoption, bringing a unique blend of strategic insight and market
expertise to accelerate the firm's growth initiatives. His
leadership will ensure MFH remains at the forefront of innovation
in the rapidly evolving technology landscape. In his capacity as
CEO of Chaince Securities, Mr. Daye will run a client-centric
investment banking and capital formation practice. His vision is
to deliver tailored solutions that meet the needs of an
increasingly dynamic and sophisticated market.
The Company stated that with a forward-thinking mindset and
extensive expertise in structured credit trading and financial
innovation, Mr. Daye brings over two decades of leadership at the
crossroads of Wall Street and digital innovation. He previously
served as CEO of Securitize Capital, the asset management arm of
Securitize, a trailblazer in Real-World Asset (RWA) tokenization,
and a recognized leader in blockchain-enabled financial solutions.
Under his leadership, Securitize successfully tokenized private
equity assets for industry giants such as KKR and Hamilton Lane,
marking a significant milestone in the adoption of digital assets.
Daye has also held pivotal roles at some of the world's leading
financial institutions. As a trader at UBS, he specialized in
complex cash and synthetic structured products, driving
advancements in financial engineering. He also held senior
positions at Deutsche Bank and Barclays Capital, where he focused
on global credit products. Additionally, he was a key member of
the structured credit team at D.B. Zwirn after beginning his career
at Lehman Brothers.
"What excites me most about joining MFH and Chaince Securities is
the unique opportunity to shape the future of finance at a time
when innovation and tradition are finding powerful new synergies,"
said Wilfred. "Throughout my career, I've seen how transformative
the right combination of technology and financial expertise can be.
I look forward to working alongside our talented teams to build
something truly exceptional -- a bridge between traditional
financial services and the digital future that creates lasting
value for our clients and partners."
Shi Qiu, CEO of Mercurity Fintech Holding Inc., further commented:
"When we envisioned the next chapter of MFH's growth, we knew we
needed a leader who not only understands the complexities of both
traditional and digital finance but also shares our commitment to
innovation with purpose. In Wilfred, we've found that rare
combination. His genuine passion for financial innovation and deep
understanding of institutional markets makes him the perfect
architect for our future. We're delighted to welcome him to our
leadership team."
The Company has entered into an employment agreement with Mr. Daye.
As part of the agreement, Mr. Daye will be granted 100,000 ordinary
shares of the Company, which will vest over a one-year period in
equal monthly installments.
About Mercurity
Formerly known as JMU Limited, Mercurity Fintech Holding Inc. is a
digital fintech company with subsidiaries specializing in
distributed computing and digital consultation across North America
and the Asia-Pacific region and is in the process of applying for
FINRA approval to add brokerage services to its business. The
Company's focus is on delivering innovative financial solutions
while adhering to principles of compliance, professionalism, and
operational efficiency. The Company's aim is to contribute to the
evolution of digital finance by providing secure and innovative
financial services to individuals and businesses.
Singapore-based Onestop Assurance PAC, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
April 22, 2024. The report highlights that the Company has
incurred recurring operating losses and negative cash flows from
operating activities and has an accumulated deficit, which raise
substantial doubt about its ability to continue as a going
concern.
The Company had an accumulated deficit of approximately $677
million as of Dec. 31, 2023, and had a net loss of approximately
$9.4 million and negative cash flows from operating activities of
approximately $2.8 million for the year ended Dec. 31, 2023.
MESEARCH MEDIA: Updates Convertible Debt Claim Pay
--------------------------------------------------
Game Creek Holdings, LLC, an insider of MeSearch Media Technologies
Limited, submitted a First Amended Disclosure Statement to
accompany Plan of Reorganization for the Debtor.
The Plan Proponent, an insider of the Debtor, anticipates
generating revenue to fund the Chapter 11 Plan through a cash
infusion for the purpose of repaying all creditors in full and
paying Existing Equity $100,000.00.
Thereafter, Existing Equity will be cancelled and new equity will
be issued with 100% of new equity being received in exchange for
the Plan Proponent's payment of claims and equity.
Game Creek, an insider of the Debtor, shall provide sufficient
funds to pay all required expenses and distributions under the
plan.
The Amended Disclosure Statement does not alter the proposed
treatment for unsecured creditors and the equity holder:
* Class 3 shall consist of all Unsecured Creditors. Each
Holder of a Class 3 Claim shall be paid one hundred percent of its
Allowed Class 3 Claim in a single Distribution on the Effective
Date. The allowed unsecured claims total $2,268,904.49.
* Class 4 shall consist of the Membership Interests of the
Members of MeSearch (at times referred also as "Existing Equity").
Existing Equity interests shall be cancelled and new equity issued.
Each holder of a Class 4 Allowed Equity Interest shall receive
their pro rata share of $100,000 paid on the Effective Date, which
shall be subject to higher and better offers at the confirmation
hearing.
Class 5 shall consist of the Convertible Debt held by Game Creek.
All Convertible Debt will be assumed, along with any right of
conversion, by the Reorganized Debtor or paid in full if not
converted. For the purpose of clarity and the avoidance of doubt, a
successful bidder must fully satisfy Class 5 by either assuming the
Convertible Debt, which includes converting the Convertible Debt
into new equity in the Reorganized Debtor, or paying the full
amount owed under the matured Convertible Notes. The amount of
claim in this Class total $942,832.86.
Funding from Game Creek, LLC, an insider of the Debtor in the total
amount of at least $3,461,927.95 (the “Upset Bid Price”), which
accounts for the payment of all expected claims and currently
estimated Administrative Expenses, $100,000.00 paid to Equity
Holders. Any subsequent competing bidder must enter a bid that
exceeds the Upset Bid Price.
A full-text copy of the First Amended Disclosure Statement dated
January 23, 2025 is available at https://urlcurt.com/u?l=0bzr2R
from PacerMonitor.com at no charge.
Counsel to Game Creek Holdings:
Kirk B. Burkley, Esq.
BERNSTEIN-BURKLEY, P.C.
601 Grant Street, 9th Floor
Pittsburgh PA 15219
Tel: 412-456-8100
Email: kburkley@bernsteinlaw.com
About MeSearch Media Technologies
RMS Funding Company, LLC, Game Creek Holdings, LLC and Trib Total
Media, LLC filed involuntary Chapter 11 petition against MeSearch
Media Technologies Limited (Bankr. W.D. Penn. Case No. 24-21982) on
August 13, 2024. Kirk B. Burkley, Esq., at Bernstein-Burkley, P.C.
represents the petitioning creditors in MeSearch's bankruptcy
case.
Judge John C. Melaragno oversees the case.
David L. Fuchs, Esq., at Fuchs Law Office, LLC, serves as the
Debtor's counsel.
MI LIQUIDATION: Trustee Taps Sanderson Law Firm as Counsel
----------------------------------------------------------
George F. Sanderson III, plan trustee for MI Liquidation, Inc.,
seeks approval from the U.S. Bankruptcy Court for the Eastern
District of North Carolina to hire The Sanderson Law Firm, PLLC as
his counsel.
The firm will assist the Trustee in the performance of both his
regular trustee and his legal duties.
The firm will charge $475 per hour for its services.
As disclosed in the court filings, the firm does not represent or
hold any adverse interest to the Debtor or to the bankruptcy estate
in the matters upon which it is to be engaged.
The firm can be reached through:
George F. Sanderson III, Esq.
THE SANDERSON LAW FIRM, PLLC
P.O. Box 6130
Raleigh, NC 27628
Tel: (984) 867-9300
Email: george@georgesandersonlaw.com
About MI Liquidation, Inc.
MI Liquidation, Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No.
24-01757) on May 25, 2024, listing $500,001 to $1 million in assets
and $10,000,001 to $50 million in liabilities.
Judge David M Warren presides over the case.
John A. Northen, Esq. at Northen Blue, LLP represents the Debtor as
counsel.
MICHAEL J. WEISS: Unsecured Creditors to Get Nothing in Plan
------------------------------------------------------------
Michael J. Weiss, Inc d/b/a California Tanning Club filed with the
U.S. Bankruptcy Court for the District of New Jersey a Small
Business Plan of Reorganization dated January 23, 2025.
The Debtor is a New Jersey Corporation that is the owner/operator
of a tanning salon d/b/a California Tanning Club. The Debtor
operates out of leased space in Ledgewood, New Jersey.
The Debtor is a New Jersey Corporation and is 100% owned by Michael
J. Weiss who also serves as President. Andrea Weiss, the spouse of
Michael J. Weiss, runs the day to day operations of the business.
On October 16, 2024, the Debtor filed a voluntary petition for
relief under the Bankruptcy Code. The bankruptcy was filed as an
emergency because the State of New Jersey Division of Taxation, on
the date Debtor filed this case, was executing on a Levy and
threatening to shut down Debtor's operations.
The Debtor's plan is being funded entirely from Debtor's net
disposable income with payments to commence on the first day of the
month immediately following the effective date of the plan. The
debtor shall be making payments under the plan to Administrative
Creditors, the Class #1 Creditor, State of New Jersey Division of
Taxation on its secured claims and to Priority Tax Claims held by
the Internal Revenue Service and the State of New Jersey.
The Class #2 General unsecured creditors (which consists solely of
the claims held by the Internal Revenue Service, the State of New
Jersey Division of Taxation and the State of New Jersey Department
of Labor may receive either a nominal or no distribution. After
Debtor's Administrative Creditors are satisfied in full Debtor
shall commence making payments to Priority Tax Claims and then
after priority tax claims have been satisfied in full payments
shall commence to secured creditors.
Class 2 consists of General Unsecured Claims. General Unsecured
Creditors include State of New Jersey Division of Taxation (claim
#1-1) ($688,516.21); Internal Revenue Service (claim #2-1)
($11,802.58); and State of New Jersey Department of Labor
(claim#3-1) ($580.85). This Class will receive a distribution of 0%
of their allowed claims. This Class is impaired.
Class 3 consists of Equity Interest holder Michael J. Weiss (100%).
All Equity Interest Holders shall retain their equity interest in
the same % as listed.
The Debtor's Plan will be funded through the net income of the
Debtor's business along with monetary contributions from Michael
and Andrea Weiss as may be necessary.
The Debtor's financial projections show that the Debtor will have
an aggregate annual average cash flow, after paying operating
expenses and post- confirmation taxes, of $24,000.00.
A full-text copy of the Plan of Reorganization dated January 23,
2025 is available at https://urlcurt.com/u?l=lhVhpS from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Scott D. Sherman, Esq.
MINION & SHERMAN
33 Clinton Road
Suite 105
West Caldwell, NJ 07006
973-882-2424
Fax : 973-882-0856
Email: ssherman@minionsherman.com
About Michael J. Weiss
Michael J. Weiss Inc. is a personal injury law firm.
Michael J. Weiss Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-20249) on October 16,
2024, with up to $50,000 in assets and up to $1 million in
liabilities.
The Debtor is represented by Scott D. Sherman, Esq., at Minion &
Sherman.
MIKESELL TRADING: Unsecureds to Get 4.5 Cents on Dollar in Plan
---------------------------------------------------------------
Mikesell Trading, LLC filed with the U.S. Bankruptcy Court for the
Western District of Kentucky a Chapter 11 Plan of Reorganization
dated January 23, 2025.
The Debtor is an e-commerce retailer of shoes, apparel, and other
consumer goods. The Debtor typically acquires its inventory
through wholesale and liquidation, then markets and sells on
Amazon.com and similar online platforms.
The Debtor transacts business on the Amazon Marketplace through
seller accounts established under its own name and its subsidiaries
Highland Brands LLC and Harmon Shoes of Kentucky LLC. Since the
Petition Date, Debtor has continued to market and sell its
inventory through the Amazon Marketplace.
The Debtor's bankruptcy filing was primarily precipitated by (1)
over-reliance on high interest "merchant cash advances" with
oppressive repayment terms that included regular sweeps from
Debtor's bank accounts, and (2) an expansion of the scope of
Debtor's traditional inventory to include consumer goods that were
in high demand during the COVID-19 pandemic. Debtor initiated
cost-cutting measures prior to seeking bankruptcy relief, but could
not reach acceptable payment terms with creditors.
This Small Business Plan proposes to pay creditors of the Debtor
from the future income and cash flow generated by the Debtor's
continued business operations.
This plan provides for one class of Priority Claims, four classes
of Secured Claims, one class of non-priority Unsecured Claims, and
one class of Equity Interests. Holders of Allowed non-priority
Unsecured Claims will receive cash distributions which the Debtor,
as proponent of this Plan, has valued at approximately four and
one-half (4.5) cents on the dollar.
This Plan also provides for the payment of Allowed Administrative
Claims and Allowed Priority Claims in full on the Effective Date
unless the holder of such claim has, prior to the Effective Date,
agreed in writing to accept periodic payment on account of its
Allowed Administrative Claim or Allowed Priority Claim.
The Debtor's financial projections suggest that the Debtor will
have projected disposable income of $39,156.00. The final Plan
payment is expected to be paid on or around April 1, 2030.
Class 3 consists of Non-Priority Unsecured Claims. The allowed
unsecured claims total $871,067.93. Class 3 Claims are impaired.
Beginning on the date that is one (1) month after the Effective
Date and continuing monthly thereafter until the fifth anniversary
of the Effective Date (the "Class 3 Maturity Date"), Debtor will
transfer its disposable income, as defined in Bankruptcy Code
Section 1191(d), for the prior calendar month, if any, into a bank
account (the "Reserve Account") to be opened and maintained in
Debtor's name through the date that is 180 days after the Class 3
Maturity Date.
Subject to Debtor's ability to make expenditures necessary for the
continuation, preservation, or operation of its business, including
payment of amounts due under this Plan, Debtor shall deposit funds
into the Reserve Account sufficient to enable Debtor to distribute
funds, pro rata, among holders of Class 3 Claims on an annual basis
such that a cumulative distribution of $39,156.00 among holders of
Class 3 Claims shall be made by the Class 3 Maturity Date.
Class 4 equity interests in Debtor are unimpaired. The holders of
Class 4 equity interests shall retain their respective interests in
Debtor as of the Effective Date.
Following Confirmation, Debtor will continue to be managed in
accordance with the company's operating agreement. The Debtor's
officers will continue to be paid market-based salary and benefits
packages commensurate with their services to the company and
professional experience. After Confirmation, Debtor may hire, fire,
and adjust compensation of its officers at the discretion of
Debtor's board of directors without application to or authority
from the subchapter V trustee or the Bankruptcy Court.
A full-text copy of the Plan of Reorganization dated January 23,
2025 is available at https://urlcurt.com/u?l=XOU7Up from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Tyler R. Yeager, Esq.
Charity S. Bird, Esq.
Kaplan Johnson Abate & Bird, LLP
710 W. Main St., 4th Floor
Louisville, KT 40202
Telephone: (502) 416-1630
Facsimile: (502) 540-8282
Email: tyeager@kaplanjohnsonlaw.com
About Mikesell Trading
Mikesell Trading, LLC is an Amazon-first accelerated brand agency
designed to help apparel products become an Amazon Bestseller.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Kent. Case No. 24-31363) on May 24,
2024, with $500,001 to $1 million in assets and $1 million to $10
million in liabilities. Evan Mikesell, director of operations,
signed the petition.
Judge Joan A. Lloyd oversees the case.
Charity S. Bird, Esq., at Kaplan Johnson Abate & Bird, LLP, is the
Debtor's legal counsel.
NEOLPHARMA INC: Seeks to Hire RSM Puerto Rico as Accountant
-----------------------------------------------------------
Neolpharma, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Puerto Rico to employ RSM Puerto Rico as
accountant.
The firm will provide these services:
(a) prepare or review of bankruptcy court required monthly
operating reports;
(b) reconcile proof of claims;
(c) prepare or review the Debtor's projections;
(d) analyze profitability of the Debtor's operations;
(e) assist in the development or review of plan of
reorganization or disclosure statement;
(f) consult strategic alternatives and developments of
business plan; and
(g) perform any other consulting and expert witness services
relating to various bankruptcy matters.
The firm will be paid at these hourly rates:
Doris Barroso Vicens, Partner $255
Partners $200 - $300
Managers $150 - $185
Seniors $75 - $90
Staff $65 - $75
In addition, the firm will seek reimbursement to expenses
incurred.
The firm requires a $10,000 retainer from the Debtor.
Ms. Barroso Vicens disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Doris Barroso Vicens, CPA
RSM Puerto Rico
P.O. Box 10528
San Juan, PR 00922
Telephone: (787) 751-6164
Facsimile: (787) 759-7479
About Neolpharma Inc.
Neolpharma Inc. is a privately-held company that specializes in the
manufacturing of pharmaceutical products.
Neolpharma Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.P.R. Case No.: 25-00188) on January 22,
2025. In its petition, the Debtor reports total assets of
$29,049,165 and total liabilities of $21,068,886.
The Debtor tapped Carmen D. Conde Torres, Esq., at C. Conde &
Assoc. as counsel and RSM Puerto Rico as accountant.
NEWS DIRECT: U.S. Trustee Appoints Creditors' Committee
-------------------------------------------------------
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of News Direct
Corp.
The committee members are:
1. Carl Dispoto
186 Hebberd Avenue
Paramus, NJ 07652
Telephone: (201) 218-1931
Email: cdispoto@gmail.com
2. Neil Hershberg
58 Reed Drive
Roslyn, NY 11576
Telephone: (516) 375-6819
Email: nhhershberg@gmail.com
3. Timothy Freres
3843 W. Commonwealth Avenue
Chandler, AZ 85226
Telephone: (480) 233-5499
Email: timothydfreres@gmail.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About News Direct Corp.
News Direct Corp. is a news and content distribution platform in
Norwalk, Conn.
News Direct sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Conn. Case No. 25-50005) on January 3, 2025, with
up to $50,000 in assets and $1 million to $10 million in
liabilities.
Judge Julie A. Manning handles the case.
The Debtor is represented by:
Scott M. Charmoy, Esq.
Charmoy & Charmoy
Tel: 203-255-8100
Email: scottcharmoy@charmoy.com
NORTH MISSISSIPPI: 45-Day Extension for Plan Filing Granted
-----------------------------------------------------------
Judge Jason D. Woodard of the U.S. Bankruptcy Court for the
Northern District of Mississippi extended North Mississippi Media
Group, LLC's exclusive period to file its plan for additional
forty-five days.
As shared by Troubled Company Reporter, the Debtor explains that it
is required to file its plan of reorganization on or before
December 19, 2024. The Debtor and its counsel have diligently
attempted to gather the information necessary to complete this
document and file it in a timely manner. However, because of the
extent of the information involved, and the intervening holidays,
they have not been able to do so.
In addition, the Debtor had contracted with an entity known as
Paychex to prepare its payroll, furnish its workman's compensation
insurance and to, generally speaking, "handle" its employee
relations.
Paychex did not notify the Debtor that there was any problem with
the relationship, it did not attempt to notify the Debtor that
there were defaults that needed to be cured; instead, out of the
blue, it sent a purported termination letter to the Debtor. This
clearly violates the automatic stay and Debtor will pursue remedies
and sanctions at some point.
As a result, the Debtor should not be punished by its inability to
file a meaningful plan of reorganization while it is in the middle
of cleaning up the chaos and mess caused by Paychex.
North Mississippi Media Group, LLC is represented by:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: (601) 427-0048
Fax: (601) 427-0050
Email: cmgeno@cmgenolaw.com
About North Mississippi Media
North Mississippi Media Group, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Miss.
Case No. 24-12920) on Sept. 20, 2024, listing $1,000,001 to $10
million in both assets and liabilities.
The Debtor tapped Craig M. Geno, Esq., at Law Offices Of Craig M.
Geno, PLLC as bankruptcy counsel and Anne Goodwin Crump, Esq., at
Fletcher, Heald & Hildreth, PLC as special counsel.
NOVA CONSTRUCTORS: Sec. 341(a) Meeting of Creditors on February 27
------------------------------------------------------------------
On January 30, 2025, Nova Constructors LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Middle District of
Florida.
According to court filing, the Debtor reports $2,775,211 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 27,
2025 at 01:30 PM via Meeting held telephonically. Please call
877-934-2472 and enter code 8613356# to attend.
About Nova Constructors LLC
Nova Constructors LLC, f/k/a Noble Constructors, LLC, is a
full-service building company specializing in construction,
renovation, and pre-construction consulting. The company
comprehensive design and build services, handling projects such as
terrace builds, kitchen remodels, new garage additions, and lake
house renovations.
Nova Constructors LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00389) on January
30, 2025. In its petition, the Debtor reports total assets of
$917,066 and total liabilities of $2,775,211.
Honorable Bankruptcy Judge Charles M Walker handles the case.
The Debtor is represented by:
R. Alex Payne, Esq.
DUNHAM HILDEBRAND PAYNE WALDRON, PLLC
9020 Overlook Blvd., Suite 316
Brentwood, TN 37027
Tel: 629-777-6529
Fax: 615 777 3765
Email: alex@dhnashville.com
O'RYAN RANCHES: Case Summary & Six Unsecured Creditors
------------------------------------------------------
Debtor: O'Ryan Ranches, Ltd.
8180 Lakeview Center, Suite 300
Odessa, TX 79765
Business Description: The Debtor operates within the oil and gas
extraction industry.
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 25-40434
Debtor's Counsel: Hudson Jobe, Esq.
JOBE LAW PLLC
6060 North Central Expressway, Suite 500
Dallas, TX 75206
Tel: (214) 807-0563
Email: hjobe@jobelawpllc.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Ryan C. Hoerauf, president of Ryan
Properties, Inc., general partner of the Debtor.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/2N274OQ/ORyan_Ranches_Ltd__txnbke-25-40434__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Six Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Central Texas Electric Co-Op $178
PO Box 553
Fredericksburg, TX 78624
2. Henderson County Unknown
Appraisal District
1751 Enterprise
Athens, TX 75751
3. Internal Revenue Service $0
Centralized Insolvency Office
P.O. Box 7346
Philadelphia, PA
19101-7346
4. Ryan Turner Specialty $6,972
26289 Network Place
Chicago, IL 60673
5. Texas Comptroller of $0
Public Accounts
Revenue Accounting Division-
Bankruptcy Section
P.O. Box 13528
Capitol Station
Austin, TX 78711
6. Thomas Jaeger $75,000
15226 East Sage Drive
Fountain Hills, AZ 85268
ODYSSEY MARINE: President's Annual Base Salary Increased to $343K
-----------------------------------------------------------------
Odyssey Marine Exploration, Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that the
Compensation Committee of the Board of Directors approved an
increase in the annual base salary of John D. Longley, President
and Chief Operating Officer and a "Named Executive Officer,"
retroactive to January 1, 2025.
Mr. Longley will receive an annual base salary of $343,505.
About Odyssey Marine
Odyssey Marine Exploration, Inc. and its subsidiaries are engaged
in deep-ocean exploration. Their innovative techniques are
currently applied to mineral exploration and other marine survey
and contracted services. The corporate headquarters are in Tampa,
Florida.
Tampa, Fla.-based Grant Thornton LLP, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
May 17, 2024, citing that the Company incurred net operating losses
during the year ended 2023, and as of December 31, 2023, the
Company's current liabilities exceeded its current assets by $26.6
million, and its total liabilities exceeded its total assets by
$85.9 million. These conditions, along with other matters, raise
substantial doubt about the Company's ability to continue as a
going concern.
As of September 30, 2024, Odyssey Marine had $21,758,228 in total
assets, $98,480,151 in total liabilities, and $76,721,923 in total
stockholders' deficit.
ODYSSEY MARINE: Registers 2MM More Shares Under 2019 Stock Plan
---------------------------------------------------------------
Odyssey Marine Exploration, Inc. filed a Registration Statement on
Form S-8 with the U.S. Securities and Exchange Commission for the
purpose of registering an additional 2,000,000 shares of common
stock, par value $0.0001 per share of the Company that may be
issued pursuant to the Company's 2019 Stock Incentive Plan.
The Company previously registered 800,000 shares of Common Stock
for issuance under the Plan pursuant to a Registration Statement on
Form S-8 filed with the SEC on July 12, 2019 (File No. 333- 232629)
and 1,600,000 shares of Common Stock for issuance under the Plan
pursuant to a Registration Statement on Form S-8 filed with the SEC
on September 16, 2022 (File No. 333-267484).
A full-text copy of Registration Statement is available at:
https://tinyurl.com/fe4rtksf
About Odyssey Marine
Odyssey Marine Exploration, Inc. and its subsidiaries are engaged
in deep-ocean exploration. Their innovative techniques are
currently applied to mineral exploration and other marine survey
and contracted services. The corporate headquarters are in Tampa,
Florida.
Tampa, Fla.-based Grant Thornton LLP, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
May 17, 2024, citing that the Company incurred net operating losses
during the year ended 2023, and as of December 31, 2023, the
Company's current liabilities exceeded its current assets by $26.6
million, and its total liabilities exceeded its total assets by
$85.9 million. These conditions, along with other matters, raise
substantial doubt about the Company's ability to continue as a
going concern.
As of September 30, 2024, Odyssey Marine had $21,758,228 in total
assets, $98,480,151 in total liabilities, and $76,721,923 in total
stockholders' deficit.
ODYSSEY MARINE: Selling Stockholders Offer Up to 40.9MM Shares
--------------------------------------------------------------
Odyssey Marine Exploration, Inc. disclosed in a preliminary
prospectus on Form S-1 filed with the U.S. Securities and Exchange
Commission that the selling stockholders -- 37North Capital
Management, LLC; 37North SPV Capital 11, LLC; Capital
Latinoamericano, S.A. de C.V.; CEOF Holdings LP; Craig Bryson; DP
Special Opportunities Fund I, LLC; Drakes Landing Associates LP;
Kenneth Brian Fried; FW Deep Value Opportunities Fund I, LLC;
Greywolf Opportunities Master Fund II LP; Mark B. Justh; James
Christian Little; Lord Baltimore Associate Investments, LLC; Lord
Baltimore Equity Partners VIII, LLC; Carlos Gabriel Orozco
Alatorre; Mark Purdy; Rangeley Capital Partners, LP; Rangeley
Capital Partners II, LP; Rangeley Capital Special Opportunities
Fund LP; SEG Opportunity Fund, LLC; Two Seas Capital LP; and VLTCM
Ltd. -- or their permitted transferees, are offering an aggregate
of up to 40,924,202 shares of the Company's common stock:
(a) issued or issuable pursuant to a securities purchase
agreement,
(b) issuable upon the exercise of outstanding warrants to
purchase common stock or the conversion of outstanding convertible
notes, and
(c) issuable pursuant to certain consulting agreements.
The prospectus also covers any additional shares of common stock
that may become issuable upon any anti-dilution adjustment pursuant
to the terms of the above-described warrants or convertible notes
by reason of stock splits, stock dividends, or similar events. Of
the shares of common stock issued or issuable pursuant to the
securities purchase agreement, 7,377,912 shares were issued and
sold in a private placement in December 2024, and up to 7,220,141
shares are issuable at a subsequent closing to be held in April
2025. The warrants to purchase common stock and the convertible
notes were issued by Odyssey in private placements that closed in
March and December 2023 and were amended in December 2024. Up to
346,500 shares may be issued pursuant to consulting agreements
Odyssey has entered into or may enter into in the future.
The selling stockholders may sell all or a portion of the shares
from time to time at prices that will be determined by the
prevailing market price for the shares. Odyssey Marine will not
receive any proceeds from the sale of the common stock by the
selling stockholders, except upon the exercise of the warrants to
purchase common stock by the selling stockholders.
For additional information on the methods of sale, a full-text copy
of Company's preliminary prospectus is available at:
https://tinyurl.com/2pv999vb
About Odyssey Marine
Odyssey Marine Exploration, Inc. and its subsidiaries are engaged
in deep-ocean exploration. Their innovative techniques are
currently applied to mineral exploration and other marine survey
and contracted services. The corporate headquarters are in Tampa,
Florida.
Tampa, Fla.-based Grant Thornton LLP, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
May 17, 2024, citing that the Company incurred net operating losses
during the year ended 2023, and as of December 31, 2023, the
Company's current liabilities exceeded its current assets by $26.6
million, and its total liabilities exceeded its total assets by
$85.9 million. These conditions, along with other matters, raise
substantial doubt about the Company's ability to continue as a
going concern.
As of September 30, 2024, Odyssey Marine had $21,758,228 in total
assets, $98,480,151 in total liabilities, and $76,721,923 in total
stockholders' deficit.
OLIVIA J STUDIOS: Has Deal on Cash Collateral Access
----------------------------------------------------
Olivia J Studios, LLC and JPMorgan Chase Bank, N.A. entered into a
stipulation, allowing the company to use the lender's cash
collateral to pay its operating expenses.
The parties agree that Olivia J Studios may use cash collateral
through the earlier of the effective date of any confirmed Chapter
11 plan of reorganization; dismissal or conversion of the company's
Chapter 11 case to one under Chapter 7; or the company's default
under the stipulation and failure to cure the default.
As adequate protection, JPMorgan will be granted a replacement lien
on all of the company's post-petition assets or interests in assets
acquired on or after the petition date.
JPMorgan will also receive a monthly payment of $180 as additional
protection.
JPMorgan is represented by:
Todd S. Garan, Esq.
Aldridge Pite, LLP
3333 Camino del Rio South, Suite 225
San Diego, CA 92108
Phone: 877-319-8840
Email: tgaran@aldridgepite.com
A copy of the stipulation is available at
https://urlcurt.com/u?l=DGHkBD from PacerMonitor.com.
About Olivia J Studios
Olivia J Studios, LLC filed a Chapter 11 bankruptcy petition
(Bankr. C.D. Calif. Case No. 24-11956) on Nov. 22, 2024. In the
petition filed by David Blair, managing member, the Debtor
disclosed up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Victoria S. Kaufman oversees the case.
Thomas B. Ure, Esq., at Ure Law Firm, represents the Debtor as
legal counsel.
OMEGA THERAPEUTICS: Enters RSA with Pioneering Medicines
--------------------------------------------------------
Jim Silver of Bloomberg News reports that Omega Therapeutics has
entered into an agreement with Pioneering Medicines 08-B, an
affiliate of Flagship Pioneering and a key shareholder.
The agreement includes a potential sale of all Omega assets and new
financing facilities to support the sale and wind-down process.
On January 17, 2025, Omega Therapeutics received a default notice
from Banc of California.
About Omega Therapeutics
Omega Therapeutics, Inc. is a clinical-stage biotechnology company,
which engages in the development of DNA-sequence-targeting and
mRNA-encoded therapeutics.
OPEN ARMS: Unsecured Creditors to Split $126K over 3 Years
----------------------------------------------------------
Open Arms Health Systems, LLC, filed with the U.S. Bankruptcy Court
for the Southern District of Ohio a Plan of Reorganization dated
January 23, 2025.
The Debtor is an Ohio Limited Liability Company that was
established in 2011. Christopher Allison is the sole member of the
Debtor and is the manager of the Debtor's business. The Debtor's
business is to assist individuals with developmental disabilities
("Clients").
The economic factors that lead to filing this Case are familiar to
the Court because they stem from the impact of Covid. Pre-Covid,
the Debtor grossed nearly 4 million dollars in 2019. The Debtor was
thriving, expanding, and cultivating new programs to keep up with
the demand. In 2019, the Debtor was serving approximately 300
Clients. Then the shutdown of Covid hit. During Covid, the Debtor's
business was among one of the first industries to be shut down and
was among one of the last to re-open.
Since the filing of the Debtor's Case, Alisson has continued to
manage the Debtor with the advice of bankruptcy counsel Isaac Wiles
& Burkholder LLC ("IW"), and oversight by the Office of the United
States Trustee ("UST") and the subchapter V trustee, M. Colette
Gibbons ("Trustee").
On a post-confirmation basis, the Debtor will fund its Plan
payments from income resulting from the operation of its business.
Alliston will continue to manage the Debtor. Distributions under
the Plan will be made by the Debtor if the Plan is confirmed on a
consensual basis (meaning all classes vote to accept the plan).
The Debtor has calculated its projected disposable income as
approximately $202,500 per year (or about $16,833 per month). The
Debtor will need to make capital expenditures during the term of
the Plan to obtain motor vehicles for use in transporting its
Clients.
The Debtor must transport the Clients from their homes to the
Debtor's two business locations for training, and to meetings,
work, and medical appointments. This transportation is necessary
for the Debtor to meet Medicaid requirements for reimbursement. The
Debtor's existing fleet of motor vehicles is old and insufficient
in number. The Debtor's projections of net income need to be
reduced by $3500 per month to allow for the purchase of replacement
motor vehicles and additional motor vehicles.
Class 3 is the class for general unsecured Claims. The Debtor will
make monthly payments of $3,500. Each holder of an Allowed
Unsecured Claim will receive a prorated share of the monthly
payment. The proposed Class 3 Distribution will be the same
regardless of whether the Plan is confirmed on a consensual or
nonconsensual basis. This treatment will pay a total of $126,000 to
unsecured creditors over the three-year commitment period. No
interest will be paid on Class 3 Claims. Class 3 is impaired under
the Plan and is entitled to vote.
Class 5 contains the membership Interest of Allison. He will retain
his membership Interest.
Payments to be made under this Plan will be made from the funds of
the Debtor existing as of the Effective Date, as well as funds
generated after the Effective Date from operations of the Debtor's
business. Funds may also be available from the Debtor's pursuit of
any avoidance actions available to it under Chapter 5 of the
Bankruptcy Code, if any, should the Debtor choose to pursue any
such claims.
A full-text copy of the Plan of Reorganization dated January 23,
2025 is available at https://urlcurt.com/u?l=Pi41vl from
PacerMonitor.com at no charge.
Counsel to the Debtor:
David M. Whittaker Esq.
Isaac Wiles & Burkholder LLC
Two Miranova Place, Suite 700
Columbus, OH 43215
Phone: (614) 221-2121
Direct line: (614) 340-7431
Fax: (614) 365-9516
Email: dwhittaker@isaacwiles.com
About Open Arms Health Systems
Open Arms Health Systems, LLC -- https://www.oaohio.com/ -- is a
health care business (as defined in 11 U.S.C. Sec. 101(27A)).
Open Arms Health Systems sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ohio. Case No.
24-54305) on October 25, 2024, with $500,000 to $1 million in
assets and $1 million to $10 million in liabilities. Christopher W.
Allison, a member of Open Arms Health Systems, signed the
petition.
Judge Mina Nami Khorrami oversees the case.
The Debtor is represented by David M. Whittaker, Esq., at Isaac
Wiles.
ORIGINAL MOWBRAY'S: Seeks to Hire Ordinary Course Professionals
---------------------------------------------------------------
The Original Mowbray's Tree Service, Inc. seeks approval from the
U.S. Bankruptcy Court for the Central District of California to
retain professionals utilized in the ordinary course of business.
These OCPs have provided legal, technical, accounting, consulting,
and/or other related services to the Debtors, upon which they rely
on to manage their day-to-day operations.
The Debtors seek to pay OCPs 100 percent of the fees and expenses
incurred.
The Debtors do not believe that any of the OCPs have an interest
materially adverse to them, their estates, creditors, or other
parties in interest in connection with the matter upon which they
are to be engaged.
The OCPs include:
a. SorenMcAdam
Orange Tree Lane, Suite 100
Redlands, CA 92374
SorenMcadam.com
-- CPA services.
b. CKB VIENNA LLP
9531 Pittsburgh Avenue
Rancho Cucamonga, CA 91730
-- General corporate legal services and
litigation related to certain pending
state court matters.
c. Squire Patton Boggs (US) LLP
2325 East Camelback Road, Suite 700
Phoenix, AZ 85016
-- Labor and employment counsel.
d. Reed Smith LLP
1221 McKinney Street, Suite 2100
Houston, TX 77010
-- Litigation in pending state court matter.
About The Original Mowbray's Tree Service, Inc
Original Mowbray's Tree Service Inc., doing business as Mowbray's
Tree Service, is a family owned and operated business committed to
providing its client-partners with solution to their vegetation
management needs. It offers hazard tree mitigation, integrated
vegetation management, mechanized tree removal, emergency response,
crane services, and green waste & debris management.
Original Mowbray's Tree Service sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12674) on
Oct. 18, 2024, with $10 million to $50 million in both assets and
liabilities. Brian Weiss, chief restructuring officer, signed the
petition.
Judge Theodor Albert oversees the case.
The Debtor tapped Raines Feldman Littrell, LLP as general
bankruptcy counsel; Force Ten Partners, LLC as restructuring
advisor; and Grobstein Teeple, LLP as financial advisor.
ORTLEY BEACH: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Ortley Beach House LLC
4 7th Avenue
Seaside Heights, NJ 08751
Business Description: The Debtor is the fee simple owner of the
property located at 4 7th Avenue, Seaside
Heights, NJ 08751, with an estimated current
value of $1.85 million, based on a market
analysis.
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 25-11156
Debtor's Counsel: Peter J. Broege, Esq.
BROEGE NEUMANN FISCHER & SHAVER, LLC
25 Abe Voorhees Drive
Manasquan NJ 08736
Tel: (732) 223-8484
Email: pbroege@bnfsbankruptcy.com
Total Assets: $1,850,060
Total Liabilities: $1,106,808
The petition was signed by Trinsky W. Chandra as sole member.
The Debtor filed a list of its 20 largest unsecured creditors,
which was empty.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/IUGIYGQ/Ortley_Beach_House_LLC__njbke-25-11156__0001.0.pdf?mcid=tGE4TAMA
PARADOX ENTERPRISES: Gets OK to Use Cash Collateral Until Feb. 28
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Tennessee,
Winchester Division, extended Paradox Enterprises, LLC's authority
to use cash collateral from Jan. 31 to Feb. 28.
Paradox requires the use of cash collateral to pay its operating
expenses and to make payments to Legalist DIP Fund I, LP and
Legalist DIP SPV II, LP, which may assert an interest in the
company's cash collateral.
The company's budget shows total disbursements of $32,650 for
February.
Legalist DIP Fund I and Legalist DIP SPV will be granted a
replacement lien to the extent that the use of cash collateral
results in a decrease in the value of their collateral. In
addition, the secured creditors will receive weekly payments of
$4,000 from Paradox as adequate protection.
The next hearing is set for Feb. 27.
Legalist DIP Fund and Legalist DIP SPV are represented by:
Gregory C. Logue, Esq.
Woolf, McClane, Bright, Allen & Carpenter, PLLC
P.O. Box 900
Knoxville, TN 37901
(865)215-1000
(865)215-1001 (fax)
logueg@wmbac.com
About Paradox Enterprises
Paradox Enterprises, LLC owns various properties valued at $6.1
million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tenn. Case No. 24-10826) on April 5,
2024, with $6,174,373 in assets and $13,012,125 in liabilities.
Eric Shelley, managing member, signed the petition.
Judge Nicholas W. Whittenburg oversees the case.
The Debtor is represented by:
Denis Graham Waldron
Dunham Hildebrand, PLLC
Tel: 629-777-6519
Email: gray@dhnashville.com
PARTY CITY: Seeks to Hire Paul Weiss Rifkind Wharton as Attorney
----------------------------------------------------------------
Party City Holdco Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to hire Paul, Weiss,
Rifkind, Wharton & Garrison LLP as attorneys.
The firm's services include:
a. providing legal advice with respect to the Debtors' powers
and duties as debtors in possession in the continued operation of
their business and management of their properties;
b. attending meetings and negotiating with representatives of
creditors and other parties in interest and advising and consulting
on the conduct of these chapter 11 cases, including the legal and
administrative requirements of operating in chapter 11;
c. taking necessary action to protect and preserve the
Debtors' estates;
d. preparing and prosecuting on behalf of the Debtors all
motions, applications, answers, orders, reports, and papers
necessary to the administration of the estates;
e. advising and assisting the Debtors with financing and
transactional matters as such may arise during the chapter 11
cases;
f. appearing in Court and protecting the interests of the
Debtors before the Court; and
g. performing all other legal services for the Debtors that
may be necessary and proper in these chapter 11 cases.
The firm will be paid at these rates:
Partners $2,245 to $2,595
Counsel $1,995
Staff Attorneys and Associates $975 to $1,695
Paraprofessionals $175 to $560
Paul, Weiss has received advanced payment retainers in connection
with this matter, including on Dec. 9, 2024, in the amount of
$750,000, Dec. 16, 2024, in the amount of $480,331, and Dec. 18,
2024, in the amount of $499,417.
The following is provided in response to the request for additional
information set forth in Paragraph D.1 of the Fee Guidelines.
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments or
discounts offered during the 12 months prepetition. If your billing
rates and material financial terms have changed post-petition,
explain the difference and the reasons for the difference.
Response: Paul, Weiss' rates for timekeepers for its prepetition
engagement on this matter were $2,245 to $2,595 for partners,
$1,995 for counsel, $975 to $1,695 for associates, and $175 to $560
for paraprofessionals.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Response: Yes. Pursuant to the Interim Cash Collateral Order,
professionals proposed to be retained by the Debtors provided
weekly estimates of fees and expenses to be incurred in these
chapter 11 cases.
Kenneth S. Ziman, Esq., a partner at Paul, Weiss, Rifkind, Wharton
& Garrison LLP, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Kenneth S. Ziman, Esq.
PAUL, WEISS, RIFKIND, WHARTON
& GARRISON LLP
1285 Avenue of the Americas
New York, NY 10019-6064
Telephone: (212) 373-3000
Facsimile: (212) 757-3990
About Party City Holdco
Party City Holdco Inc. (NYSE: PRTY) is the global leader in the
celebrations' industry, with its offerings spanning more than 70
countries around the world. It is also the largest designer,
manufacturer, distributor, and retailer of party goods in North
America. Party City Holdco had 761 company-owned stores as of
September 2022. It is headquartered in Woodcliff Lake, N.J. with
additional locations throughout the Americas and Asia.
Party City Holdco and its domestic subsidiaries sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead
Case No. 23-90005). As of Sept. 30, 2022, Party City Holdco had
total assets of $2,869,248,000 against total debt of
$3,022,960,000.
Judge David R. Jones oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP,
as legal counsel; Moelis & Company, LLC as investment banker;
AlixPartners, LLP as financial advisor; A&G Realty Partners as real
estate advisor; and Kroll as the claims agent.
PricewaterhouseCoopers LLP (PwC) provides accounting and valuation
advisory services, tax-related services, and internal audit
Sarbanes-Oxley Act support services.
Davis Polk & Wardwell, LLP and Lazard serve as legal counsel and
investment banker, respectively, to the ad hoc group of first lien
holders.
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases. The
committee is represented by Pachulski Stang Ziehl & Jones, LLP.
PARTY CITY: Seeks to Hire Porter Hedges LLP as Co-Counsel
---------------------------------------------------------
Party City Holdco Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to hire Porter Hedges LLP
as co-counsel.
The firm will render these services:
a. provide legal advice and services regarding local rules,
practices, and procedures;
b. provide certain services in connection with administration
of the chapter 11 cases, including, without limitation, preparing
agendas, hearing notices and hearing binders of documents and
pleadings;
c. review and comment on proposed drafts of pleadings to be
filed with the Court as bankruptcy co-counsel to the Debtors;
d. provide legal advice with respect to the Debtors' rights
and duties as debtors in possession and continued business
operations;
e. assist, advise and represent the Debtors in analyzing the
Debtors' capital structure, investigating the extent and validity
of liens, cash collateral stipulations or contested matters;
f. assist, advise and represent the Debtors in any cash
collateral and/or post-petition financing transactions;
g. assist, advise and represent the Debtors in the preparation
of sale and bid procedures to auction the Debtors' assets;
h. assist, advise and represent the Debtors in any manner
relevant to preserving and protecting the Debtors' estates;
i. prepare on behalf of the Debtors all necessary
applications, motions, answers, orders, reports, and other legal
papers;
j. appear in Court and to protect the Debtors' interests
before the Court;
k. at the request of the Debtors, appear in Court and at any
meeting with the U.S. Trustee and any meeting of creditors at any
given time on behalf of the Debtors as their bankruptcy co-counsel;
and
l. provide other legal advice and services, as requested by
the Debtors, from time to time.
The firm's current standard hourly rates range from $520 to $1,100
for partners, $400 to $1,100 for counsel, $420 to $805 for
associates and staff attorneys, and $310 to $470 for
paraprofessionals.
On Dec.9, 2024, Porter Hedges received a retainer in the amount of
$250,000 to pay invoices for prepetition and post-petition
services.
The following is provided in response to the request for additional
information set forth in Paragraph D.1 of the Fee Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments or
discounts offered during the 12 months prepetition. If your billing
rates and material financial terms have changed post-petition,
explain the difference and the reasons for the difference.
Response: PH was retained in November 2022. PH's rates for
timekeepers for its prepetition engagement on this matter for 2024
were $520 to $1,100 for partners, $400 to $1,100 for counsel, $420
to $805 for associates and staff attorneys, and $310 to $470 for
paraprofessionals. PH anticipates raising its rates for 2025 as
part of PH's normal course annual revisions, and will file a notice
reflecting any changes to its rates.
M. Shane Johnson, Esq., a partner at Porter Hedges, disclosed in a
court filing that the firm is a "disinterested person" as defined
in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
M. Shane Johnson, Esq.
Porter Hedges LLP
1000 Main Street, 36th Floor
Houston, TX 77002
Tel: (713) 226-6769
Fax: (713) 226-6369
Email: sjohnson@porterhedges.com
About Party City Holdco
Party City Holdco Inc. (NYSE: PRTY) is the global leader in the
celebrations' industry, with its offerings spanning more than 70
countries around the world. It is also the largest designer,
manufacturer, distributor, and retailer of party goods in North
America. Party City Holdco had 761 company-owned stores as of
September 2022. It is headquartered in Woodcliff Lake, N.J. with
additional locations throughout the Americas and Asia.
Party City Holdco and its domestic subsidiaries sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead
Case No. 23-90005). As of Sept. 30, 2022, Party City Holdco had
total assets of $2,869,248,000 against total debt of
$3,022,960,000.
Judge David R. Jones oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP,
as legal counsel; Moelis & Company, LLC as investment banker;
AlixPartners, LLP as financial advisor; A&G Realty Partners as real
estate advisor; and Kroll as the claims agent.
PricewaterhouseCoopers LLP (PwC) provides accounting and valuation
advisory services, tax-related services, and internal audit
Sarbanes-Oxley Act support services.
Davis Polk & Wardwell, LLP and Lazard serve as legal counsel and
investment banker, respectively, to the ad hoc group of first lien
holders.
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases. The
committee is represented by Pachulski Stang Ziehl & Jones, LLP.
PARTY CITY: Taps A&G Realty Partners as Real Estate Consultant
--------------------------------------------------------------
Party City Holdco Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to hire A&G Realty
Partners, LLC, as real estate consultant and advisor.
The firm will render these services:
a. negotiate with the Landlords on behalf of the Debtors to
obtain Monetary Lease Modifications acceptable to the Company;
b. market some or all of the Leases, and negotiate with the
Landlords and other third parties, to assist the Debtors in
obtaining Lease Sales; and
c. if requested by the Debtors, negotiate with Landlords to
assist the Debtors in obtaining Landlord Consents.
A&G shall be compensated at these rates:
a. Security Retainer. Prior to the Petition Date, the Debtors
paid A&G a security retainer in the amount of $50,000. The security
retainer shall be applied to the final invoice for fees and
expenses due under the terms of the Services Agreement.
b. Monetary Lease Modifications. For each Monetary Lease
Modification obtained by A&G on behalf of the Debtors, A&G shall
earn and be paid a fee in the amount of the greater of 8.5% of the
Occupancy Cost Savings and $650, per Lease.
c. Lease Sales. For each Lease Sale obtained by A&G on behalf
of the Debtors, For each Lease Sale obtained by A&G on behalf of
the Company and agreed to by the Company in its sole and absolute
discretion, A&G shall earn and be paid a fee of 3.5 percent of the
Gross Proceeds (the "Lease Sale Fee"); provided, however, if a
Lease is listed for sale and a closing on such Lease Sale does not
occur, A&G shall earn and be paid a fee of two-hundred fifty
dollars ($250) for such Lease (the "Minimum Lease Sale Fee").
As disclosed in the court filings, A&G is a "disinterested person"
as that term is defined in section 101(14) of the Bankruptcy Code,
as modified by section 1107(b) of the Bankruptcy Code.
The firm can be reached through:
Emilio Amendola
A&G Realty Partners, LLC
445 Broadhollow Road, Suite 410
Melville, NY 11747
Direct: (631) 465-9507
Mobile: (917) 860-2192
Email: emilio@agrep.com
About Party City Holdco
Party City Holdco Inc. (NYSE: PRTY) is the global leader in the
celebrations' industry, with its offerings spanning more than 70
countries around the world. It is also the largest designer,
manufacturer, distributor, and retailer of party goods in North
America. Party City Holdco had 761 company-owned stores as of
September 2022. It is headquartered in Woodcliff Lake, N.J. with
additional locations throughout the Americas and Asia.
Party City Holdco and its domestic subsidiaries sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead
Case No. 23-90005). As of Sept. 30, 2022, Party City Holdco had
total assets of $2,869,248,000 against total debt of
$3,022,960,000.
Judge David R. Jones oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP,
as legal counsel; Moelis & Company, LLC as investment banker;
AlixPartners, LLP as financial advisor; A&G Realty Partners as real
estate advisor; and Kroll as the claims agent.
PricewaterhouseCoopers LLP (PwC) provides accounting and valuation
advisory services, tax-related services, and internal audit
Sarbanes-Oxley Act support services.
Davis Polk & Wardwell, LLP and Lazard serve as legal counsel and
investment banker, respectively, to the ad hoc group of first lien
holders.
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases. The
committee is represented by Pachulski Stang Ziehl & Jones, LLP.
PARTY CITY: Taps Deborah Rieger-Paganis of AP Services as CRO
-------------------------------------------------------------
Party City Holdco Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to hire AP Services, LLC
and designate Deborah Rieger-Paganis as chief restructuring
officer.
The firm's services include:
-- preparing budgets and 13-week cash forecasts, including a DIP
budget or wind down budget, as applicable, and evaluating variances
thereto, as required by the Debtors' lenders;
-- communicating with, and meeting information needs of, the
Debtors' various constituencies and stakeholders;
-- identifying, implementing, and monitoring liquidity generating
initiatives;
-- developing, negotiating, and implementing a restructuring,
liquidation, or sale strategy designed to maximize enterprise
value, considering the unique interests of key constituencies;
-- preparing, as applicable, (a) a disclosure statement and plan
of reorganization or a liquidating plan, (b) a liquidation
analysis, (c) statements of financial affairs and schedules of
assets and liabilities, (d) a potential preference analysis, (e) a
claims analysis, (f) monthly operating reports and other regular
reporting required by the Court, and (g) any other filings
necessary in these chapter 11 cases;
-- managing the "working group" professionals who are assisting
the Debtors in the reorganization or liquidation process or who are
working for the Debtors' various stakeholders to improve
coordination of their effort and individual work product to be
consistent with the Debtors' overall restructuring or liquidation
goals;
-- creating and communicating materials for diligence purposes
and manage the flow of information to potential acquirers in
connection a potential sale of the Debtors' assets; and
-- assisting the Debtors with such other matters as may be
requested by the Debtors and are mutually agreeable.
APS's current standard hourly rates are:
Partner / Partner &
Managing Director $1,225 to $1,540
Senior Vice President/
Director $850 to $1,150
Vice President $650 to $835
Analyst / Consultant $250 to $640
APS received a retainer in the amount of $600,000.
Deborah Rieger-Paganis, managing director at AlixPartners,
disclosed in a court filing that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Deborah Rieger-Paganis
AlixPartners, LLP
909 Third Avenue, 30th Floor
New York, NY 10022
Tel: (212) 490-2500
Fax: (212) 490-1344
Email: dpaganis@alixpartners.com
About Party City Holdco
Party City Holdco Inc. (NYSE: PRTY) is the global leader in the
celebrations' industry, with its offerings spanning more than 70
countries around the world. It is also the largest designer,
manufacturer, distributor, and retailer of party goods in North
America. Party City Holdco had 761 company-owned stores as of
September 2022. It is headquartered in Woodcliff Lake, N.J. with
additional locations throughout the Americas and Asia.
Party City Holdco and its domestic subsidiaries sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead
Case No. 23-90005). As of Sept. 30, 2022, Party City Holdco had
total assets of $2,869,248,000 against total debt of
$3,022,960,000.
Judge David R. Jones oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP,
as legal counsel; Moelis & Company, LLC as investment banker;
AlixPartners, LLP as financial advisor; A&G Realty Partners as real
estate advisor; and Kroll as the claims agent.
PricewaterhouseCoopers LLP (PwC) provides accounting and valuation
advisory services, tax-related services, and internal audit
Sarbanes-Oxley Act support services.
Davis Polk & Wardwell, LLP and Lazard serve as legal counsel and
investment banker, respectively, to the ad hoc group of first lien
holders.
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases. The
committee is represented by Pachulski Stang Ziehl & Jones, LLP.
PARTY EMPORIUM: Seeks to Tap Lawson Accounting Group as Accountant
------------------------------------------------------------------
Party Emporium, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Arkansas to employ Lawson Accounting
Group, PLLC to provide accounting services and serve as an expert
witness.
The firm will charge a flat rate of $550 per month for bookkeeping,
$175 per week for payroll, a flat fee of $1,425 for basic corporate
tax return preparation and an hourly services as needed for extra
services at $75 per hour for support staff and $175 per hour for
accountant work.
As disclosed in the court filings, the firm has no conflict of
interest with the Debtor, any creditors and other parties in
interest.
The accountant can be reached through:
Polly Lawson
Lawson Accounting Group, PLLC
1901 Wheeler Ave.
Fort Smith, AR 72901
Tel: (479) 648-3680
About Party Emporium
Party Emporium, LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Ark. Case No. 24-72049) on Dec. 7,
2024. In the petition filed by Melody Sanford, managing member, the
Debtor disclosed $390,191 in assets and $1,259,574 in liabilities.
Judge Bianca M. Rucker oversees the case.
Stanley V. Bond, Esq., at Bond Law Office serves as the Debtor's
counsel.
PHOENIX EXTEND: Seeks to Hire Keery McCue as Bankruptcy Counsel
---------------------------------------------------------------
Phoenix Extend-A-Suites, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Arizona to employ Keery McCue,
PLLC as counsel.
The firm will render these services:
(a) prepare pleadings and applications;
(b) conduct examinations incidental to administration;
(c) advise the Debtor of its rights, duties, and obligations
under Chapter 11 of the Bankruptcy Code;
(d) take any and all other necessary action incident to the
proper preservation and administration of this Chapter 11 estate;
and
(e) advise the Debtor in the formulation and presentation of a
plan pursuant to Chapter 11 of the Bankruptcy Code, the disclosure
statement and concerning any and all matters relating thereto.
The firm will be paid at an hourly rate between $165 to $475.
Patrick Keery, Esq., an attorney at Kerry McCue, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Patrick F. Keery, Esq.
Keery McCue, PLLC
6803 East Main Street, Suite 1116
Scottsdale, AZ 85251
Telephone: (480) 478-0709
Facsimile: (480) 478-0787
Email: mjm@keerymccue.com
About Phoenix Extend-A-Suites LLC
Phoenix Extend-A-Suites LLC is a limited liability company.
Phoenix Extend-A-Suites LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-00688) on January
27, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Brenda Moody Whinery handles the case.
The Debtor is represented by Patrick F. Keery, Esq., at Keery
Mccue, PLLC, in Scottsdale, Arizona.
PINEAPPLE EXPRESS: Minimal Cash, Deficit Raise Going Concern Doubt
------------------------------------------------------------------
Pineapple Express Cannabis Company disclosed in a Form 10-Q Report
filed with the U.S. Securities and Exchange Commission for the
quarterly period ended October 31, 2024, that substantial doubt
exists about its ability to continue as a going concern.
For the three months ended October 31, 2024, and 2023, the Company
reported a net loss of $1,248 and $2,115 respectively. As of
October 31, 2024, the Company had cash of $1043 and an accumulated
deficit of 919,554. To date, it has financed its operations
primarily through the issuance of debt and equity sourced capital.
Pineapple Express said, "Since inception, we have financed our cash
flow requirements primarily through issuance of common stock and
debt financing. As we expand our activities, we may continue to
experience net negative cash flows from operations. We anticipate
obtaining additional financing to fund operations through
additional common stock offerings, to the extent available, or to
obtain additional financing to the extent necessary to augment our
working capital. There can be no assurance that we will be able to
obtain financing on commercially acceptable terms, if at all."
"We anticipate that we will incur operating losses in the next 12
months. Our lack of operating history makes predictions of future
operating results difficult to ascertain. Our prospects must be
considered in light of the risks, expenses and difficulties
frequently encountered by companies in their early stage of
development, particularly companies in new and rapidly evolving
markets. There can be no assurance that we will be successful in
addressing such risks, and the failure to do so can have a material
adverse effect."
The accompanying unaudited financial statements have been prepared
in conformity with accounting principles generally accepted in the
United States, which contemplate continuation of the Company as a
going concern. Minimal Cash, and accumulated deficit of $924,146
raises substantial doubt about the Company's ability to continue as
a going concern. Management anticipates that the Company will be
dependent, for the near future, on additional investment capital to
fund operating expenses. The Company intends to position itself so
that it will be able to raise additional funds through the capital
markets. There are no assurances that the Company will be
successful in this or any of its endeavors or become financially
viable and continue as a going concern.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/36sk55yp
About Pineapple Express Cannabis
Pineapple Express Cannabis Company is based in Los Angeles,
California. The Company's wholly owned operating subsidiary, Ananas
Growth Ventures, serves as an incubator, helping early-stage
ventures and startups in the cannabis sector through funding,
mentoring, and training. The Company is also engaged in legal
cannabis retail through its 50% owned equity method investee,
Pineapple Consolidated Inc. PCI runs Pineapple Express, a cannabis
retailer and owns and manages retail cannabis ventures. PCI seeks
to become a leading portfolio management company in the U.S.
cannabis industry. With its headquarters in Los Angeles, Pineapple
Express is rapidly increasing its footprint throughout California
and is looking to scale into underdeveloped markets.
As of October 31, 2024, the Company has $3,016,699 in total assets,
$2,988,198 in total liabilities, and $28,501 in total stockholders'
equity.
PLASTIC SUPPLIERS: Comm. Hires Porzio Bromberg & Newman as Counsel
------------------------------------------------------------------
The official committee of unsecured creditors of Plastic Suppliers
Inc. and its affiliates seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to hire Porzio, Bromberg &
Newman, P.C. as its attorneys.
The firm will render these services:
a) advise the Committee with respect to the Committee's power
and duties under Bankruptcy Code section 1103;
b) assist the Committee in its investigation of the acts,
conduct, assets, liabilities, and financial condition of the
Debtor;
c) assist the Committee in connection with the Debtor's
proposed sale of their assets;
d) assist the Committee in connection with any proposed
chapter 11 plan or other disposition of these cases;
e) assist the Committee in analyzing the claims of the
Debtor's creditors and the Debtor's capital structure and in
negotiating with holders of claims, including analysis of possible
objections to the priority, amount, subordination, or avoidance of
claims and/or transfers of property in consideration of such
claims;
f) advise and represent the Committee in connection with
matters generally arising in these cases;
g) review and analyze all applications, motions, orders,
statements of operations and schedules filed with the Court by the
Debtor or third parties, advising the Committee as to their
propriety, and, after consultation with the Committee, taking
appropriate action;
h) prepare necessary applications, motions, answers, orders,
reports and other legal papers on behalf of the Committee; and
i) represent the Committee at hearings held before the Court
and communicate with the Committee regarding the issues raised, as
well as the decisions of the Court.
The firm will be paid at these rates:
Kelly D. Curtin $425 to $1,190 per hour
Zhenyi Zhou $318.75 to $361.25 per hour
Brett Moore, Esq., member at Porzio, disclosed in a court filing
that his firm is a "disinterested person" pursuant to Section
101(14) of the Bankruptcy Code.
The firm can be reached at:
Brett S. Moore, Esq.
Kelly D. Curtin, Esq.
PORZIO, BROMBERG & NEWMAN, P.C.
100 Southgate Parkway
P.O. Box 1997
Morristown, NJ 07962
Telephone: (973) 538-4006
Email: bsmoore@pbnlaw.com
Email: kdcurtin@pbnlaw.com
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, Specialty 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.
PLASTIC SUPPLIERS: Committee Taps RK Consultants as Accountant
--------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Plastic Suppliers, Inc. and its affiliates
seeks approval from the U.S. Bankruptcy Court for the District of
New Jersey to employ RK Consultants, LLC as accountant.
The firm will render these services:
(a) become familiar with and analyze the Debtors' budget,
assets and liabilities, and overall financial condition;
(b) review financial and operational information furnished by
the Debtors;
(c) monitor the sale process, review bidding procedures, stalk
horse bids, asset purchase agreements, interface the Debtors'
professionals, and advise the committee regarding the process;
(d) scrutinize the economic terms of various agreements;
(e) analyze the Debtors' proposed forecasts and develop
alternative scenarios, if necessary;
(f) assess the Debtors' various pleadings and proposed
treatment of unsecured creditor claims therefrom;
(g) prepare or review as applicable, avoidance action and
claim analyses; assist the committee in reviewing the Debtors'
financial reports;
(h) schedules of assets and liabilities, and monthly operating
reports;
(i) advise the committee on the current state of these Chapter
11 cases;
(j) advise the committee in negotiations with the Debtors and
third parties as necessary;
(k) participate as a witness in hearings before the court with
respect to matters upon which the firm has provided advice;
(l) other activities as are approved by the committee, its
counsel, and as agreed to by the firm; and
(m) perform such other services as may be required or are
otherwise deemed to be in the interests of the committee in
accordance with its powers and duties as set forth in the
Bankruptcy Code, Bankruptcy Rules or other applicable law.
The firm will be paid at hourly rates between $140 to $500 plus
out-of-pocket expenses.
Brian Ryniker, a member at RK Consultants, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Brian Ryniker
RK Consultants LLC
2712 Loker Avenue West 1088
Carlsbad, CA 92010
About Plastic Suppliers
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, PC.
The U.S. Trustee appointed an official committee of unsecured
creditors appointed in these Chapter 11 cases. The committee tapped
RK Consultants, LLC as accountant.
PLAZA MARIACHI: Seeks to Extend Plan Exclusivity to April 28
------------------------------------------------------------
Plaza Mariachi, LLC is asking the U.S. Bankruptcy Court for the
Middle District of Tennessee to extend its exclusivity periods to
file a plan of reorganization and obtain acceptance thereof to
April 28 and June 27, 2025, respectively.
The factors establish good cause for the Court to grant the Debtor
a 91-day extension of the exclusive periods to file and seek
acceptance of a plan of reorganization.
* The first two factors, "the size and complexity of the
case," and "the necessity of sufficient time to negotiate and
prepare adequate information" are neutral or mitigate in favor of
an extension. Although this case is not unusually large or complex
on its face, the Debtor believes that the timing of the case
complicated its efforts to sell the Shops at Plaza Mariachi.
* The third factor, "the existence of good faith progress
toward reorganization" supports an extension of the exclusive
periods. The Debtor has retained a broker and has been marketing
the property for sale. The Debtor has retained special real estate
counsel to address easement issues with the eventual buyer, and to
draft sale documents and facilitate a closing of the sale.
* The fourth factor "whether the debtor is paying its debts as
they come due," also supports an extension of the exclusive
periods. The Debtor is current on its monthly payments to FFB, and
is current on its monthly insurance premiums for the property. The
Debtor has no other material reoccurring payment obligations on a
monthly basis.
* The fifth factor, "whether the debtor has demonstrated
reasonable prospects for filing a viable plan," supports an
extension of the exclusive periods. The Debtor has a valuable asset
with substantial equity that generates sufficient income to support
a plan. The Debtor anticipates that its plan will provide monthly
payments to creditors pending a sale or refinance of some or all of
the Property that will be sufficient to pay all creditors in full.
* The sixth factor, "whether the debtor has made progress
negotiating with creditors," also supports the requested extension
of the exclusive periods. Since the case was filed, the Debtor has
been in regular communication with FFB and Capital One, the
Debtor's largest secured creditors. Both creditors have expressed
support for a sale of The Shops at Plaza Mariachi as soon as
reasonably practicable.
* The seventh factor, "whether the debtor is seeking an
extension to pressure creditors" supports an extension of the
exclusive periods. The Debtor is not seeking the extension to put
pressure on its creditors. To the contrary, the Debtor is seeking
the extension to allow additional time to properly position the
Debtor to propose a full payment plan of reorganization.
* The last factor, "whether unresolved contingencies exist,"
is neutral. Arguably, a sale of The Shops at Plaza Mariachi is a
contingency that would support the funding of a plan, but the
Debtor does not believe that a sale of The Shops will delay the
Debtor filing or obtaining confirmation of the Plan. The Debtor,
supported by PM Realty, if necessary, has sufficient assets and
income to fund a plan and make payments to creditors pending a sale
or refinance of some or all of the Property.
Bankruptcy Counsel for the Debtor:
Todd Burgess, Esq.
Janel M. Glynn, Esq.
The Burgess Law Group
3131 E. Camelback Rd., Suite 224
Phoenix, AZ 85016
Phone: (602) 806-2100
Email: todd@theburgesslawgroup.com
Email: janel@theburgesslawgroup.com
Local Counsel for the Debtor:
Sean C. Wlodarczyk, Esq.
EVANS, JONES & REYNOLDS, PC
401 Commerce Street, Suite 710
Nashville, TN 37219
Telephone: (615) 259-4685
Facsimile: (615) 256-4448
Email: Swlodarczyk@ejrlaw.com
About Plaza Mariachi LLC
Plaza Mariachi is a Single Asset Real Estate debtor (as defined in
11 U.S.C. Section 101(51B)).
Plaza Mariachi LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Tenn. Case No.
24-02441) on July 1, 2024, listing $10 million to $50 million in
both assets and liabilities. The petition was signed by Mahan Mark
Janbakhsh, member/manager.
Judge Charles M. Walker oversees the case.
Sean C. Wlodarczyk, Esq. at Evans, Jones & Reynolds, PC, is the
Debtor's counsel.
PORT LOUIS: Seeks to Tap Anthony S. Maska as Special Counsel
------------------------------------------------------------
Port Louis Owners Association, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Louisiana to employ
Anthony S. Maska, Esq., an attorney practicing in Covington,
Louisiana, as special counsel.
The attorney will serve as lead counsel in pursuing the current
state court cases and any future collection actions as necessary
and to take any and all actions necessary to negotiate, litigate,
and/or reduce the claim and take any and all further action as may
arise as lead counsel. Further, he will assist the Debtor in its
plan to amend or replace the current convents of the Debtor
Association.
The attorney will be compensated at his hourly rate of $200 plus
out-of-pocket expenses.
Mr. Maska disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The attorney can be reached at:
Anthony S. Maska, Esq.
1974 N. Highway 190
Covington, LA 70433
Telephone: (985) 320-6333
About Port Louis Owners Association
Port Louis Owners Association Inc. is dedicated to fostering a
sense of belonging and unity among homeowners in this vibrant
community.
Port Louis Owners Association sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 24-12511) on
December 26, 2024. In its petition, the Debtor reported assets of
$100,000 to $500,000 and liabilities of up to $50,000.
Judge Meredith S. Grabill handles the case.
The Debtor tapped Renee L. Achee, Esq., at Achee Law Firm, LLC as
bankruptcy counsel and Anthony S. Maska, Esq., as special counsel.
POWER CITY: Gets Interim OK to Use Cash Collateral
--------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Galveston Division, granted Power City Technologies, LLC
authorization to use cash collateral to pay its expenses.
The interim order authorized the company to use the cash collateral
of its secured creditors, which consists of revenues generated by
its business operations.
As protection for the use of their cash collateral, secured
creditors were granted replacement liens equivalent to their
pre-bankruptcy liens. These creditors include Fundthrough USA,
Inc., Capybara Capital, LLC, Five Lakes Financial, Leaf Capital
Funding, CT Corporation Systems, and Maddox Industrial Transformer,
LLC.
As additional protection, Capybara Capital will receive a monthly
payment of $5,000.
The interim order will be effective until the final hearing
scheduled for Feb. 13 or until further order of the court.
About Power City Technologies
Power City Technologies, LLC is a Texas limited liability company
that focuses on field service industrial machinery repair and
conditional monitoring systems in the Houston and Galveston area.
It works with oil and gas, automotive, food and beverage, and other
manufacturing companies.
Power City Technologies sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 24-80390) on
December 30, 2024, listing up to $50,000 in assets and up to
$500,000 in liabilities. Paul Hopkins, managing member, signed the
petition.
Judge Alfredo R. Perez oversees the case.
The Debtor is represented by:
Gabe Perez, Esq.
Zendeh Del & Associates PLLC
Tel: 409-740-1111
Email: gabe@zendehdel.com
POWER REIT: Inks ATM Sales Agreement With A.G.P.
------------------------------------------------
Power REIT disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that the Trust entered into a
sales agreement with A.G.P./Alliance Global Partners, as sales
agent, pursuant to which the Trust may, from time to time, issue
and sell its common shares, par value $0.001 per share, in an "at
the market offering."
Sales of the common shares, if any, will be made in sales deemed to
be an "at the market offering" as defined in Rule 415(a)(4)
promulgated under the Securities Act of 1933, as amended. A.G.P. is
not required to sell any specific amount of common shares, but will
act as sales agent on a commercially reasonable efforts basis
consistent with their normal trading and sales practices, on
mutually agreed terms between A.G.P. and the Trust. There is no
arrangement for funds to be received in any escrow, trust or
similar arrangement.
As sales agent, A.G.P. is entitled to compensation at a fixed
commission rate equal to 3.0% of the gross proceeds of each sale of
common shares under the Sales Agreement. In connection with the
sale of common shares on behalf of Power REIT, A.G.P., as sales
agent will be deemed to be an "underwriter" within the meaning of
the Securities Act and the compensation of A.G.P. will be deemed to
be underwriting commissions or discounts. Power REIT has also
agreed to provide indemnification and contribution to A.G.P. with
respect to certain liabilities, including liabilities under the
Securities Act.
The offering of the common shares pursuant to the Sales Agreement
will terminate upon the earlier of:
(1) the sale of all of the common shares provided for in the
relevant prospectus to be filed by the Trust, or
(2) the termination of the Sales Agreement. The Sales
Agreement will automatically terminate upon the issuance and sale
of all of the common shares pursuant to the Sales Agreement and may
be terminated by the Trust at any time in its sole discretion by
giving two days' written notice to A.G.P., or by A.G.P. at any time
in its sole discretion by giving two days' written notice to the
Trust with respect to A.GP.'s participation in the offering. The
Sales Agreement will remain in full force and effect until the
Sales Agreement is terminated in accordance with the terms
thereof.
About Power REIT
Old Bethpage, N.Y.-based Power REIT is a Maryland-domiciled,
internally-managed real estate investment trust that owns a
portfolio of real estate assets related to transportation, energy
infrastructure, and Controlled Environment Agriculture in the
United States.
Going Concern
For the nine months ended September 30, 2024, the Trust determined
that there was substantial doubt as to its ability to continue as a
going concern as a result of current liabilities that far exceed
current assets, net losses incurred, reduced revenue and increased
property expenses related to the greenhouse portfolio.
As of September 30, 2024, POWER REIT had $48,438,349 million in
total assets, $38,665,124 in total liabilities, and $9,773,225 in
total equity.
PRESTIGE PROPERTY: Hires Rodriguez Espola as Accountant
-------------------------------------------------------
Prestige Property Group Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ
Rodriguez Espola (RELLC), LLC as accountant.
The firm will provide these services:
a. review of accounting records for preparation of month and
year end accounting and financial reports;
b. preparation of monthly reconciliations of all bank accounts;
c. accumulation of payroll transactions to produce quarterly and
annual payroll tax returns; and
d. preparation of liquidation analysis, financial projections,
claim reconciliation and related financial documents as support for
a Plan of Reorganization.
The firm will be paid at the rate of $500 per month.
Jerry Rodriquez Espola, a partner at Rodriguez Espola (RELLC), LLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Jerry Rodriquez Espola
Rodriguez Espola (RELLC), LLC
PO Box 194144
San Juan, PR 00919-4144
About Prestige Property Group Inc.
Prestige Property Group Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case
No. 24-04852) on Nov. 8, 2024, listing $100,001 to $500,000 in
assets and $500,001 to $1 million in liabilities.
Jose M Prieto Carballo, Esq. at JPC LAW OFFICES represents the
Debtor as counsel.
PROFESSIONAL DIVERSITY: Acquires US$1.3M in AI Geometric Stock
--------------------------------------------------------------
Professional Diversity Network, Inc. filed a Form 8-K with the
Securities and Exchange Commission to disclose that it had entered
into a stock purchase agreement with AI Geometric Ltd, a company
incorporated under the laws of the United Kingdom of Great Britain
and Northern Ireland, as the seller. The transaction was completed
on Jan. 27, 2025.
Pursuant to the SPA, the Seller agreed to issue and sell 1,300
shares of the Seller to the Company, representing 13% of all issued
and outstanding shares of the Seller, at a consideration of
US$1,300,000. The Board of Directors of the Company approved the
Transaction on Jan. 17, 2025.
The SPA contains representations, warranties and covenants
customary for a transaction of this nature, as well as certain
indemnification obligations of the parties thereto for breaches of
representations, warranties and covenants.
About Professional Diversity
Headquartered in Chicago, Illinois, Professional Diversity Network,
Inc. is an operator of professional networks with a focus on
diversity, employment, education and training. The Company uses
the term "diversity" to describe communities, or "affinities," that
are distinct based on a wide array of criteria, which may change
from time to time, including ethnic, national, cultural, racial,
religious or gender classification. The Company serves a variety
of such communities, including Women, Hispanic-Americans,
African-Americans, Asian-Americans, persons with disabilities,
Military Professionals, and Lesbian, Gay, Bisexual and Transgender
(LGBTQ+) persons, and students and graduates seeking to transition
from education to career. The Company's technology platform is
integral to the operation of its business.
Oak Brook, Illinois-based Sassetti LLC, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
March 29, 2024. The report highlights that the Company has
incurred recurring operating losses, has a significant accumulated
deficit, and will need to raise additional funds to meet its
obligations and the costs of its operations. These conditions
raise substantial doubt about the Company's ability to continue as
a going concern.
The Company recorded a net loss from continuing operations of
approximately $4.5 million for the year ended Dec. 31, 2023, and
$3.1 million for the year ended Dec. 31, 2022.
"We continue to focus on our overall profitability by altering our
strategies in targeting new clients and reducing operating and
overhead expenses. We have continued to generate negative cash
flows from operations, and we expect to incur net losses for the
foreseeable future and this may have an effect on our liquidity and
financial position. These conditions raise substantial doubt about
our ability to continue as a going concern. Our ability to
continue as a going concern is dependent on our ability to further
implement our business plan, raise capital, and generate revenues,"
the Company stated in its Quarterly Report for the period ended
Sept. 30, 2024.
PROMENADE NORTH: Case Summary & Three Unsecured Creditors
---------------------------------------------------------
Debtor: Promenade North LLC
410 Peachtree Parkway - Suite 4245
Cumming, GA 30041
Business Description: Promenade North is a single asset real
estate debtor, as defined in 11 U.S.C.
Section 101(51B).
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 25-51152
Debtor's Counsel: David L. Bury, Jr., Esq.
STONE & BAXTER, LLP
577 Third Street
Macon, GA 31201
Tel: 478-750-9898
Fax: 478-750-9899
Email: dbury@stoneandbaxter.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Hamidou Sacko as managing member.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/55YZA4Y/Promenade_North_LLC__ganbke-25-51152__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Three Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Eastside Landscaping Landscaping $12,800
50 Ashley Dr.
Oxford, GA 30054
2. First Matter Invest. Unsecured Loan $215,789
Partners
3338 Peachtree Rd. -
Suite 406
Atlanta, GA 30326
3. One Place Commercial, LLC Property $213,000
11175 Cicero Drive, Management
Suite 100 Fees
Alpharetta, GA 30022
PROSPECT MEDICAL: To Sell Rhode Island Hospitals to Centurion
-------------------------------------------------------------
Prospect Medical Holdings Inc. and its affiliates seek permission
from the U.S. Bankruptcy Court for the Northern District of Texas,
Dallas Division, to sell Rhode Island hospitals, free and clear of
interest.
The Debtors' Rhode Island hospitals that are up for sale are Roger
Williams Medical Center and Our Lady of Fatima Medical Center.
The Debtors say that the sale will eliminate the ongoing expenses
associated with the Purchased Assets from the Debtors’ balance
sheet and generate value for their estates through, among other
things, the assumption of the Assumed Liabilities. Without a sale
of the Purchased Assets to the Buyer on an expedited basis, the
costs of ongoing operations will continue to deplete the Debtors’
liquidity, and, as a result, the Debtors may have no choice but to
cease operations and terminate employees associated with the
Purchased Assets.
The Debtors enter an purchase agreement with The Centurion
Foundation, Inc, CharterCARE Health of Rhode Island, Inc. and each
of their successors and assigns.
The Debtors and the Buyer have been working diligently with the
Rhode Island Attorney General and the Rhode Island Department of
Health to satisfy regulatory requirements and prerequisites to
closing the transaction.
The Debtors and their non-Debtor affiliates significant providers
of coordinated regional healthcare services in California,
Connecticut, Pennsylvania, and Rhode Island. The Company’s
business can be broadly divided into two segments: (1) hospital
operations, which consist of, among other things, the ownership and
operation of 16 acute care and behavioral hospitals, providing a
wide range of inpatient and outpatient services spanning multiple
states, and (2) physician-related services, including
certain owned and managed medical groups, independent physician
associations, managed services organizations and risk taking
entities, Prospect Health Plan, Inc., a Knox-Keene licensed entity,
and one licensed acute hospital operating as Foothill Regional
Medical Center.
The Debtors believe that the expedited private sale of the
Purchased Assets to the Buyer pursuant to the terms and conditions
of the purchase agreement is both appropriate and in the best
interest of the Debtors, the estates, and their creditors.
At the Closing, in exchange for the Purchased Assets (including the
Cash on Hand), Buyer will pay to Seller the Purchase Price.
Remittance of the Purchase Price from Buyer to Seller shall be
subject to the following adjustments, which may be made by either
by Seller transferring such to Buyer or providing for a credit
against the amount Buyer otherwise remits to Seller.
About Prospect Medical Holdings Inc.
Prospect Medical Holdings owns Roger Williams Medical Center, Our
Lady of Fatima Hospital, and several other healthcare facilities.
Prospect Medical Holdings sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80002) on
January 11, 2025. In the petition filed by Paul Rundell, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $1 billion and $10 billion each.
Honorable Bankruptcy Judge Stacey G. Jernigan handles the case.
The Debtors' General Bankruptcy Counsel is Thomas R. Califano,
Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas,
Texas, and William E. Curtin, Esq., Patrick Venter, Esq., and Anne
G. Wallice, Esq., at Sidley Austin LLP, in New York.
The Debtors' Financial Advisor is ALVAREZ & MARSAL NORTH AMERICA,
LLC.
The Debtors' Investment Banker is HOULIHAN LIKEY, INC.
The Debtors' Claims, Noticing & Solicitation Agent is OMNI AGENT
SOLUTIONS, INC.
PROSPECT MEDICAL: U.S. Trustee Appoints Creditors' Committee
------------------------------------------------------------
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Prospect
Medical Holdings, Inc. and its affiliates.
The committee members are:
1. Pension Benefit Guaranty Corporation
Cassandra Guichard
445 12th Street SW
Washington, DC 20024
202-229-4923
guichard.cassandra@pbgc.gov
2. Connecticut Health Care Associates District 1199
NUHHCH, AFSCME, AFL-CIO
Dave Hannon
2 N Plains Industrial Rd
Wallingford, CT 06492
203-265-2297
dhannon@chcaunion.org
3. Julia Russell as representative of
Yolanda Bailey v. Southern California Health Care System,
Los Angeles Superior Court Case No. 23STCV07482
jewlrussell@gmail.com
4. Axis Spine, LLC
DD Mate
1812 W Burbank Blvd. #5384
Burbank, CA 91506
323-333-8341
dmate@axisspineco.com
5. Compass Group
Jeff Almy
400 Northridge Road, Suite 600
Atlanta GA 30350
404-236-7980
jeffrey.almy@compass-usa.com
6. Accuity Delivery Systems, LLC
Robert Jones
10000 Midlantic Drive, Ste. 400W
Mount Laurel, NJ 08054
917-751-1059
robert.jones@accuityhealthcare.com
7. R4 Solutions, Inc.
Amit Bhardwaj
10080 N Wolfe Rd. SW3 200
Cupertino, CA 95014
669-666-4994
Amit.B@r4solutionsinc.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Prospect Medical Holdings
Prospect Medical Holdings, Inc. owns Roger Williams Medical Center,
Our Lady of Fatima Hospital, and several other healthcare
facilities.
Prospect Medical Holdings and its affiliates filed Chapter 11
petitions (Bankr. N.D. Texas Lead Case No. 25-80002) on January 11,
2025. Paul Rundell, chief restructuring officer of Prospect Medical
Holdings, signed the petitions.
At the time of the filing, Prospect Medical Holdings reported
between $1 billion and $10 billion in both assets and liabilities.
Judge Stacey G. Jernigan handles the cases.
The Debtors' attorneys are Thomas R. Califano, Esq., and Rakhee V.
Patel, Esq., at Sidley Austin LLP, in Dallas, Texas, and William E.
Curtin, Esq., Patrick Venter, Esq., and Anne G. Wallice, Esq., at
Sidley Austin LLP, in New York.
The Debtors tapped Alvarez & Marsal North America, LLC as financial
advisor; Houlihan Lokey, Inc. as investment banker; and Omni Agent
Solutions, Inc. as claims, noticing and solicitation agent.
RAOCORE TECHNOLOGY: Evergreen Retainer Provisions Impermissible
---------------------------------------------------------------
Judge Elizabeth L. Gunn of the United States Bankruptcy Court for
the District of Columbia held that the evergreen provisions in the
retention agreement between John D. Burns and the Burns Law Firm,
LLC, and Debtor Raocore Technology, LLC are impermissible.
At the hearing on the Amended Application to Employ John D Burns
and The Burns Law Firm, LLC as Counsel for Debtor held May 22,
2024, the Court found that John D. Burns and the Burns Law Firm,
LLC represent or hold no interest adverse to Raocore, are
disinterested, and therefore meet the requirements for employment
as counsel to the Debtor under Bankruptcy Code Sec. 327(a). The
Court took under advisement the portion of the Amended Application
seeking approval under Sec. 328 of the terms and conditions of such
employment as set out in the retention agreement between the Debtor
and the Applicants. At issue are several provisions of the
Retention Agreement that provide for the duty of the Debtor, as a
demand right of the Applicants, to make post-petition retainer
replenishment payments to the Applicants in the "sole judgement of
the firm," which, the Court said, are de facto evergreen retainer
provisions.
Notwithstanding the pendency of the Amended Application (and prior
to the filing of the Amended Application, the original application
to employ the Applicants), and without approval of their employment
or the Evergreen Provisions of the Retention Agreement, the
Applicants received over $100,000 in post-petition retainer
deposits from the Debtor. The question of the permissibility of
evergreen retainers, and the requirements for approval thereof, is
an issue of first impression in this jurisdiction. The Court finds
evergreen retainers are permitted in this district and articulates
the standard for their approval. In applying that standard, the
Court finds the Evergreen Provisions in the firm's Retainer
Agreement are impermissible, and any amounts paid to the Applicants
under the Evergreen Provisions should be disgorged to the chapter 7
trustee of the Debtor's estate.
The Court agrees that reasonable evergreen retainers are
permissible in certain chapter 11 cases with:
(i) appropriate notice;
(ii) specific disclosure of the existence of an evergreen
retainer in any employment application filed with the Court;
(iii) the inclusion of any retention agreement with any employment
application;
(iv) terms in the applicable retention agreement making clear
that any amounts paid shall be held in trust until a final fee
application is approved (or other time period as agreed by the
parties and approved by the Court); and
(v) ultimate approval of any employment application by the Court
prior to any payments made by any entity thereunder.
In addition to the notice and disclosure requirements, before
approving an evergreen retainer provision, the Court must consider
the reasonableness of the employment application and underlying
evergreen retainer, especially whether they are tailored to both
the requirements of the Bankruptcy Code and the particular
circumstances of the individual chapter 11 proceeding.
Although no one factor is determinative, factors to be considered
in determining whether the terms of a proposed retention are
reasonable include:
(i) the relationship between the Debtor and the applicant,
including whether the parties have equal bargaining power engaging
in an arm's-length negotiation;
(ii) whether the proposed terms of retention are in the best
interests of the estate;
(iii) whether there is creditor opposition to the retention or
retainer provisions; and
(iv) whether given the size and circumstances of the case, the
amount and terms of the retainer are reasonable, including whether
the terms provide an appropriate level of risk minimization taking
into consideration any other risk minimization factors such as an
administrative order or carveouts.
The record is sufficient to find that the negotiation was clearly
not arm's-length between the Debtor and the Applicants and weighs
against approval thereof.
The Court finds that the Applicants have failed to (i) meet their
notice and disclosure provisions with respect to the requested
approval of the Evergreen Provisions and (ii) all the other factors
weigh against approval of the Evergreen Provisions. According to
the Court, even if the Applicants had met all other requirements,
the language of the Evergreen Provisions is not consistent with the
Bankruptcy Code and is unconfirmable on its face. The open-ended
and unilateral discretion nature of the language of the Evergreen
Provisions render them facially inappropriate, the Court adds.
Best Interests of the Estate
Furthermore, at all times through the filing of the Amended
Application, the Debtor operated on a "shoestring budget" while
engaging in significant litigation. If approved, the Court would be
approving and ordering the Debtor to pay to the Applicants each
month the total amount of fees incurred -- amounts significant
enough to cause the Debtor to choose between paying operating
expenses or paying counsel. If the Evergreen Provisions are
approved, failure to make the post-petition payments to the
Applicants would not only be a breach of the Retention Agreement,
but also constitute a violation of a Court order sufficient to
serve as cause to convert or dismiss this case under Sec.
1112(b)(4)(E). The Court noted that while the willingness of the
Applicants to represent a corporation engaged in significant
pre-petition litigation and facing significant post-petition
litigation did provide the benefit of allowing the Debtor to remain
in bankruptcy, there was nothing unique brought to the case by the
Applicants different than any other bankruptcy firm accepting a
post-petition engagement that would support approval of the
Evergreen Provisions as in the best interests of the estate. Thus,
this factor weighs against approving the Evergreen Provisions, the
Court concluded.
The Court ordered, adjudged, and decreed that:
1) The Applicants represent or hold no interest adverse the
Debtor, are disinterested, and meet the requirements for employment
as counsel to the Debtor under Sec. 327(a) effective as of Dec. 22,
2023.
2) The Applicants shall be compensated in accordance with the
procedures set forth in Secs. 330 and 331, the applicable Federal
Rules of Bankruptcy Procedure, and this Court's Local Bankruptcy
Rules and subject to further Court order.
3) The request for approval of the Evergreen Provisions as
reasonable under Sec. 328(a) is denied.
4) Within 7 days of this Order becoming a final order, the
Applicants shall turnover to the chapter 7 trustee the amount of
$100,163.46 representing all post-petition "evergreen" deposits
after the initial "donative" $15,000.00 retainer.
A copy of the Court's decision dated Jan. 28, 2025, is available at
https://urlcurt.com/u?l=UjdPck from PacerMonitor.com.
About Raocore Technology, LLC
Raocore Technology, LLC sought protection under subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No.
23-12080) on December 20, 2023. At the time of the filing, the
Debtor reported $100,001 to $500,000 in both assets and
liabilities.
On December 26, 2023, White Oak Commercial Finance, LLC filed a
motion to transfer venue of the case from the EDVA to the U.S.
Bankruptcy Court for the District of Columbia and the case was
transferred on March 1, 2024. The case was converted to Chapter 7
in November 2024.
REAVIS REHAB: Seeks Chapter 11 Bankruptcy in Texas
--------------------------------------------------
On January 30, 2025, Reavis Rehab & Wellness Center Inc. filed
Chapter 11 protection in the U.S. Bankruptcy Court for the Western
District of Texas.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Reavis Rehab & Wellness Center Inc.
Reavis Rehab & Wellness Center Inc. is a family-owned and operated
therapy practice founded in 1984 specializing in the treatment of
pain, injuries, and discomfort. The center offers a range of
therapy programs provided by licensed physical, speech, and
occupational therapists. Each treatment plan is tailored to meet
individual patient goals, taking into account their symptoms,
medical history, and any relevant health restrictions.
Reavis Rehab & Wellness Center Inc. sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No.: 25-10126)
on January 30, 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 Shad Robinson handles the case.
The Debtor is represented by:
Stephen W. Sather, Esq.
BARRON & NEWBURGER, P.C.
7320 N. MoPac Expressway 400
Austin, TX 78731
Tel: (512) 649-3243
Email: ssather@bn-lawyers.com
ROCKY MOUNTAIN: Hires Kevin S. Neiman PC as Bankruptcy Counsel
--------------------------------------------------------------
Rocky Mountain Imports, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to employ the Law Offices of
Kevin S. Neiman, PC as bankruptcy counsel.
The firm's services include:
a. providing legal advice to the Debtor with respect to its
powers and duties as debtor-in-possession;
b. advising the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the Court;
c. preparing motions, pleadings, orders, applications,
complaints, and other legal documents necessary in the
administration of the case;
d. protecting the interests of the Debtor in all matters
pending before the Court; and
e. representing the Debtor in negotiating with its creditors
to prepare a plan of reorganization or other exit plan.
The firm's current hourly rates are:
Kevin S. Neiman $425
Paralegal $150
The firm received a retainer in the amount of $15,000.
Kevin Neiman, Esq., an attorney at the Law Offices of Kevin S.
Neiman, disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Kevin S. Neiman, Esq.
Law Offices of Kevin S. Neiman, PC
999 18th Street, Suite 1230 S
Denver, CO 80202
Telephone: (303) 996-8637
Facsimile: (877) 611-6839
Email: kevin@ksnpc.com
About Rocky Mountain Imports
Rocky Mountain Imports, LLC, doing business as Pikes Peak Rock
Shop, is a direct importer and wholesale distributor of minerals,
fossils and jewelry. Its customers include national parks, museums,
gift shops, multi-store chains, science and nature shops, rock &
gem shops, trading posts and local rock-hounds. The company
directly imports from Brazil, Peru, China, Morocco, and India, and
distributes its products to businesses across the U.S. and Canada.
Rocky Mountain Imports sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 25-10311) on January
21, 2025, with $96,089 in assets and $1,800,938 in liabilities.
Gary Greenwald, managing member of Rocky Mountain Imports, signed
the petition.
Judge Michael E. Romero oversees the case.
Kevin S. Neiman, Esq., at the Law Offices of Kevin S. Neiman, PC,
represents the Debtor as bankruptcy counsel.
ROCKY MOUNTAIN: Taps Fox Law Corp as Bankruptcy Counsel
-------------------------------------------------------
Rocky Mountain Imports, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to hire The Fox Law Corporation,
Inc. as lead bankruptcy counsel.
The firm will render these services:
a. provide the Debtor with legal advice with respect to its
powers and duties;
b. aid the Debtor in the development of a plan of
reorganization under Chapter 11;
c. file the necessary petitions, pleadings, reports, and
actions which may be required in the continued administration of
the Debtor’s property under Chapter 11;
d. take necessary actions to enjoin and stay until final
decree continuation of pending proceedings and to enjoin and stay
until final decree commencement of proceedings and all matters as
may be provided under 11 U.S.C. Sec. 362; and
e. perform all other legal services for the Debtor which may
be necessary but not to represent the Debtor in non-bankruptcy
proceedings.
he firm will be paid at these hourly rates:
Steven Fox, Principal $650
Associates $550
Paralegal $175
In addition, the firm will seek reimbursement for expenses
incurred.
The Debtor provided a retainer in the amount of $50,000.
Mr. Fox disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Steven R. Fox, Esq.
The Fox Law Corporation Inc.
17835 Ventura Blvd., Ste. 306
Encino, CA 91316
Telephone. (818) 774-3545
Facsimile: (818) 774-3707
Email: Srfox@Foxlaw.com
About Rocky Mountain Imports
Rocky Mountain Imports, LLC, doing business as Pikes Peak Rock
Shop, is a direct importer and wholesale distributor of minerals,
fossils and jewelry. Its customers include national parks, museums,
gift shops, multi-store chains, science and nature shops, rock &
gem shops, trading posts and local rock-hounds. The company
directly imports from Brazil, Peru, China, Morocco, and India, and
distributes its products to businesses across the U.S. and Canada.
Rocky Mountain Imports sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 25-10311) on January
21, 2025, with $96,089 in assets and $1,800,938 in liabilities.
Gary Greenwald, managing member of Rocky Mountain Imports, signed
the petition.
Judge Michael E. Romero oversees the case.
Kevin S. Neiman, Esq., at the Law Offices of Kevin S. Neiman, PC,
represents the Debtor as bankruptcy counsel.
ROONEY AND BORDEN: Hires Oak Tree Law as Legal Counsel
------------------------------------------------------
Rooney and Borden Jewellers, Inc. seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Oak Tree Law as counsel.
The firm's services include:
-- pre-bankruptcy planning, communicating with creditors of the
Debtor;
-- preparing the Debtor's Chapter 11, Subchapter V bankruptcy
petition, and all supporting schedules;
-- advising the Debtor of its legal rights and obligations in a
bankruptcy proceeding;
-- representing the Debtor at the initial interview of Debtor
and the meeting of creditors; and
-- communicating and responding to any motions filed in Debtors'
bankruptcy proceeding.
The firm will be paid at these rates:
Julie J. Villalobos $500 per hour
Larry Fieselman $500 per hour
Paralegals $200
The firm received from the Debtor a retainer of $15,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Larry Fieselman, Esq., a partner at Oak Tree Law, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Julie Villalobos, Esq.
Larry Fieselman, Esq.
Oak Tree Law
3355 Cerritos Ave
Los Alamitos, CA 90720
Telephone: (562) 321-9101
Facsimile: (800) 976-4187
Email: Julie@oaktreelaw.com
larry@oaktreelaw.com
About Rooney and Borden Jewellers, Inc.
The Debtor owns and operates a jewelry store in Southern California
offering fine jewelry and watches.
Rooney and Borden Jewellers, Inc. d/b/a McCarty's Jewelry in Long
Beach, CA, sought relief under Chapter 11 of the Bankruptcy Code
filed its voluntary petition for Chapter 11 protection (Bankr. C.D.
Cal. Case No. 24-20640) on December 31, 2024, listing $321,428 in
assets and $1,445,343 in liabilities. Minh Chau as owner, signed
the petition.
Judge Julia W Brand oversees the case.
OAKTREE LAW serve as the Debtor's legal counsel.
ROTI RESTAURANT: To Sell 3 Minnesota Restaurants to Broadpeak
-------------------------------------------------------------
Roti Restaurants, LLC and its affiliates seeks approval from the
U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, in a fifth motion to sell three restaurant
locations in Minnesota.
The Debtors operates fast-casual Mediterranean restaurants under
the names Roti Modern Mediterranean, Roti Mediterranean Grill, Roti
Bowls. Salads. Pitas., and Roti.
On December 16, 2024, the Debtors consummated the sale of ten such
locations in Illinois to Broadpeak Group LLP. On or about January
8, 2025, Debtors consummated the sale of another four such
locations in Washington, D.C. to Broadpeak.
The Debtors seek to sell additional three restaurant locations in
Minnesota, including all associated assets owned by the Debtors, to
Broadpeak.
The restaurants are located at:
-- 80 South 8th Street, Minneapolis (IDS Center)
-- 614 Washington Ave SE, Minneapolis (University of Minnesota)
-- 1620 Park Pl Blvd, Minneapolis
The Debtors and Broadpeak enter an asset purchase agreement for the
remaining restaurant locations with the purchase price of $369,500.
Broadpeak also agree to the assumption and assignment of the
Debtor's contracts with Toast Inc., which provides point-of-sale
software for those locations to ensure the smooth transition of
operations. Toast also consents to the assumption and assignment of
its contracts.
The Debtors have provided notice and reached agreements with the
respective landlords of the Minnesota Locations regarding the
proposed cure amounts for the leases for each of the Minnesota
Locations, and adequate assurance of future performance by
Broadpeak.
The Debtors and Broadpeak further agree to the sale of furniture,
fixtures, and equipment, currently located in the Debtors’
corporate office.
The Debtors request to sell the Assets free and clear of any liens,
claims, interests, and/or encumbrances.
About Roti Restaurants, LLC
Roti Restaurants own and operate fast-casual restaurants offering
Mediterranean menu with house-made meats, crisp vegetables, and
flavor-forward sauces.
Roti Restaurants, LLC, and its affiliates concurrently filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ill. Case No. 24-12410) on Aug. 23, 2024. The
petitions were signed by Justin Seamonds as manager. At the time of
filing, Roti Restaurants, LLC estimated $50,000 in assets and $1
million to $10 million in liabilities.
Judge Donald R. Cassling presides over the case.
Michael P. Richman, Esq. at RICHMAN & RICHMAN LLC represents the
Debtors as counsel. The Debtors hired Ravinia Capital LLC, led by
Thomas Goldblatt, as their investment banker.
The U.S. Trustee for Region 11 appointed Ira Bodenstein as
Subchapter V trustee for Roti Restaurants.
ROTM LOFTS: Seeks to Hire Dominion Management as Financial Advisor
------------------------------------------------------------------
ROTM Lofts, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Maine to employ Dominion Management Services LLC as
financial advisor.
The firm's services include:
(a) assistance in the preparation of cash flows and cash
collateral budgets;
(b) assistance with monitoring and maintaining rent rolls,
accounts payable lists, and other financial records;
(c) assistance with managing vendors and expenses, including
ensuring timely payment of post-petition obligations, and
monitoring the Debtor's cash position and compliance with
applicable budgets; and
(d) assistance with preparation of monthly operating reports
and other reporting obligations.
The firm will bill $250 per hour for services rendered by Wayne
Johnson, president of Dominion, and $75 per hour for non-working
travel time.
Further, Dominion seeks to be reimbursed for its actual and
necessary expenses incurred.
As disclosed in the court filing, Dominion does not hold or
represent any interest adverse to the Dominion estate and is a
"disinterested person" as that phrase is defined in Bankruptcy Code
Sec. 101(14), as modified by Sec. 1107(b).
The firm can be reached through:
Wayne Johnson
Dominion Management Services, LLC
90 Grandview Drive
Berlin, NH 03570
About ROTM Lofts, LLC
The ROTM Lofts, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Maine Case No. 24-10257) on November 21,
2024. In the petition signed by Geoffrey Houghton, manager and
authorized party, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge Michael A. Fagone oversees the case.
The Debtor is represented by Adam R. Prescott, Esq. at Bernstein
Shur Sawyer & Nelson, PA.
RPM RESOURCES: Seeks to Hire Lorie Meadows as Expert Witness
------------------------------------------------------------
RPM Resources, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of West Virginia to employ Lorie Meadows,
a certified public accountant practicing in Winfield, West
Virginia, as expert witness.
Ms. Meadows will calculate lost profits and other damages suffered
by the Debtor in connection with its ownership of a defective
Feller Buncher and may also assist its counsel in preparing a
reorganization plan.
Ms. Meadows will be paid at an hourly rate of $150.
Ms. Meadows disclosed in a court filing that she is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The professional can be reached at:
Lorie Meadows, CPA
13059 Winfield Road
Winfield, WV 25213
Telephone: (304) 586-9677
Email: lsmpllc@frontier.com
About RPM Resources
RPM Resources, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.V. Case 24-20015)
on Feb. 2, 2024, listing $1 million to $10 million in both assets
and liabilities. The petition was signed by Melissa C. Nichols as
member.
Judge B. McKay Mignault presides over the case.
Joseph W. Caldwell, Esq. at Caldwell & Riffee represents the Debtor
as counsel.
RSTZ TRANSPORT: Sec. 341(a) Meeting of Creditors on March 3
-----------------------------------------------------------
On January 31, 2025, RSTZ Transport Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Georgia.
According to court filing, the Debtor reports $4,588,041 in
debt owed to 50 and 99 creditors. The petition states funds will
be available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on March 3,
2025 at 02:00 PM via Telephone conference. To attend, Dial
866-643-3080 and enter participation code 1614372.
About RSTZ Transport Inc.
RSTZ Transport Inc. is a Georgia-based corporation operating in the
general freight trucking industry.
RSTZ Transport Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga.Case No. 25-20123) on January 31,
2025. In its petition, the Debtor reports total assets of
$3,464,462 and total liabilities of $4,588,041.
The Debtor is represented by:
Ian Falcone, Esq.
THE FALCONE LAW FIRM, PC
363 Lawrence St NE
Marietta, GA 30060-2056
Tel: (770) 426-9359
E-mail: imf@falconefirm.com
RUSH INC: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Rush, Inc.
744 Duxbury Lane
Bartlett, IL 60103
Business Description: Rush, Inc. is involved in the transportation
and logistics industry.
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 25-01695
Judge: Hon. David D Cleary
Debtor's Counsel: David Freydin, Esq.
LAW OFFICES OF DAVID FREYDIN
8707 Skokie Blvd
Suite 305
Skokie, IL 60077
Tel: 888-536-6607
Fax: 866-575-3765
Email: david.freydin@freydinlaw.com
Total Assets: $547,000
Total Liabilities: $2,241,538
The petition was signed by Bartosz Biernat 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/GZP3WGA/Rush_Inc__ilnbke-25-01695__0001.0.pdf?mcid=tGE4TAMA
RYVYL INC: Executes Stock Repurchase and Note Repayment Deal
------------------------------------------------------------
RYVYL Inc. has executed a Preferred Stock Repurchase and Note
Repayment Agreement for the full repayment and termination of an 8%
Senior Convertible Note and the redemption of all shares of the
Company's Series B Convertible Preferred Stock. The Definitive
Agreement provides for:
* A first tranche payment of $13.0 million for the redemption
of all of the shares of Preferred Stock held by the Securityholder,
and payment of a portion of the outstanding balance of the Note so
that the remaining outstanding principal balance will be $4.0
million.
* Advancing the maturity date for the remaining balance of
$4.0 million due under the Note, following payment of the first
tranche, to April 30, 2025.
* Upon payment of the first tranche payment and execution of
the Preferred Stock Repurchase and Note Repayment Agreement,
certain restrictive covenants contained in the transaction
documents pursuant to which the Note and the shares of Preferred
Stock were issued will be waived and no additional interest will
accrue and be payable, as long as the Company pays the remaining
$4.0 million principal balance of the Note ($4,050,000, if the date
of the first tranche payment date is extended) on or before April
30, 2025. If the Company fails to pay the remaining balance by such
date, the Note will be restored to its terms prior to the first
tranche payment, and interest will again accrue and be payable.
* Prior to payment of the first tranche payment, the
Securityholder shall retain the ability, subject to certain market
limitations, to convert the Note and the Preferred Stock into
common stock.
A full-text copy of the Company's report with further information,
filed on Form 8-K with the Securities and Exchange Commission is
available at:
https://tinyurl.com/2f5btsmy
About RYVYL, Inc.
San Diego, Calif.-based RYVYL Inc., together with its subsidiaries,
is a financial technology company that develops, markets, and sells
innovative blockchain-based payment solutions, which offer
significant improvements for the payment solutions marketplace. The
Company's core focus is to develop and monetize disruptive
blockchain-based applications, integrated within an end-to-end
suite of financial products, capable of supporting a multitude of
industries.
Rowland Heights, Calif.-based Simon & Edward, LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated March 26, 2024, citing that there has been a notable
decrease in processing volume during the first quarter of 2024
subsequently, primarily due to the transition of the QuickCard
product in North America. This transition has resulted in a
significant decline in processing volume and revenue, consequently
affecting the Company's short-term cash flow for operating
activities. The cash flow shortage has jeopardized its ability to
continue as a going concern.
As of Sept. 30, 2024, Ryvyl had $127.31 million in total assets,
$120.99 million in total liabilities, and $6.32 million in total
stockholders' equity.
S & CD HOME: Seeks to Hire Lanigan & Lanigan as Bankruptcy Counsel
------------------------------------------------------------------
S & CD Home Care Flipping, LLC seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
Lanigan & Lanigan PL to handle its Chapter 11 case.
The firm will be paid at an hourly rate of $475.
Eric Lanigan, Esq., an attorney at Lanigan & Lanigan, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Eric A. Lanigan, Esq.
Lanigan & Lanigan PL
831 W. Morse Blvd.
Winter Park, FL 32789
Telephone: (407) 740-7379
Email: eric.lanigan@laniganpl.com
About S & CD Home Care Flipping LLC
S & CD Home Care Flipping LLC is a real estate company based in
Kissimmee, Florida.
S & CD Home Care Flipping LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06975) on
December 23, 2024. In its petition, the Debtor disclosed up to $1
million in assets and up to $500,000 in liabilities.
Honorable Bankruptcy Judge Tiffany P. Geyer handles the case.
Eric A. Lanigan, Esq., at Lanigan & Lanigan PL represents the
Debtor as bankruptcy counsel.
S&W SEED: Guidance on Sorghum Sales, Margins and Product Launches
-----------------------------------------------------------------
S&W Seed Company is furnishing in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission its guidance regarding
certain financial trends and product timelines. The Company
estimates that:
* fiscal 2025 sorghum sales will be within a range of $24.0 to
$27.5 million, comprised of traited sorghum sales of $12.0 to $14.5
million and conventional sorghum sales of $12.0 to $13.0 million
* sorghum sales will increase over time, and in fiscal 2033
will be within a range of $80.0 to $90.0 million, comprised of
traited sorghum sales of $70.0 to $78.0 million and conventional
sorghum sales of $10.0 to $12.0 million
* the compounded annual growth rate ("CAGR") of sorghum sales
from fiscal 2022 through fiscal 2025 will be within a range of 17
to 22 percent and the CAGR of sorghum sales from fiscal 2025
through fiscal 2033 will be within a range of 16 to 18 percent
* fiscal 2025 adjusted gross margins (defined in "Non-GAAP
Financial Measures" below) for all sorghum sales will be within a
range of 47 to 50 percent, with the adjusted gross margins for
traited sorghum sales to be within a range of 68 to 70 percent
* fiscal 2033 adjusted gross margins for all sorghum sales
will be within a range of 71 to 75 percent, with the adjusted gross
margins for traited sorghum sales to be within a range of 76 to 81
percent
* commercial launch of its second generation of Double Team
(DT2™) forage sorghum will occur in fiscal year 2027 in the
United States
* commercial launch of DT2 plus Prussic Acid Free (PF™)
grain sorghum will occur in fiscal year 2028 in the United States
and between fiscal years 2029 to 2030 in certain other countries
* commercial launch of Broad Spectrum HT sorghum will occur in
fiscal year 2031 in the United States and fiscal year 2033 in
certain other countries
* commercial launch of Insect Tolerant sorghum will occur in
fiscal year 2031 in the United States and fiscal year 2033 in
certain other countries
* the aggregate U.S grain sorghum market share held by Double
Team, DT2, and DT2 plus PF will range from 10 to 12 percent in
fiscal 2025 and range from 25 to 30 percent in fiscal 2033
About S&W Seed
Founded in 1980 and headquartered in Longmont, CO, S&W --
www.swseedco.com -- is a global multi-crop, middle-market
agricultural company headquartered in Longmont, Colorado. S&W's
vision is to be the world's preferred proprietary seed company
which supplies a range of sorghum, forage and specialty crop
products that supports the growing global demand for animal
proteins and healthier consumer diets. S&W is a global leader in
proprietary alfalfa and sorghum seeds with significant research and
development, production and distribution capabilities. S&W also has
a commercial presence in pasture and sunflower seeds, and through a
partnership, is focused on sustainable biofuel feedstocks primarily
within camelina.
Denver, Colorado-based Grant Thornton LLP, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated Nov. 1, 2024, citing that the Company has incurred a net loss
of $30.1 million and cash used in operating activities was $5.6
million for the year ended June 30, 2024, and as of that date, the
Company's current liabilities exceeded its current assets by $5.9
million and had an accumulated deficit of $122.1 million.
In addition, the Company's subsidiary, S&W Australia, entered into
voluntary administration on July 24, 2024, and is no longer under
the Company's control. S&W Australia's entry into voluntary
administration also resulted in an event of default under the
Company's Amended CIBC Loan Agreement. On Aug. 5, 2024, the Company
received a waiver for the event of default from CIBC, which
contained conditions that are not within the Company's control.
Effective Sept. 16, 2024, the Company was not in compliance with
the amended terms per the Third Amendment of the Company's Amended
CIBC Loan Agreement, which constitutes an additional event of
default, and through the date of this report has not been able to
regain compliance. These conditions and uncertainties as to whether
the Company can mitigate the impact of the voluntary
administration, along with other matters, raise substantial doubt
about the Company's ability to continue as a going concern.
As of June 30, 2024, S&W Seed had $120.73 million in total assets,
$75.69 million in total liabilities, $5.77 million in total
mezzanine equity, and $39.26 million in total stockholders' equity.
SAN FRANCISCO CARE: Gets OK to Use Cash Collateral Until Feb. 14
----------------------------------------------------------------
San Francisco Care Center, LP got the green light from the U.S.
Bankruptcy Court for the Northern District of California, San
Francisco Division, to use the cash collateral of Lenox Mortgage
IX, LLC until Feb. 14.
The interim order signed by Judge Dennis Montali authorized the
Debtor to use cash collateral to pay the expenses set forth in its
budget except the payment of pre-bankruptcy insider payroll of
$20,391.67.
The bankruptcy judge deferred his ruling on the payment of
pre-bankruptcy insider payroll until the final hearing set for Feb.
14.
As adequate protection, Lenox was granted replacement liens on the
Debtor's real property in San Francisco, Calif., and the rents and
profits related thereto, to the same extent and with the same
validity and priority as their pre-bankruptcy liens.
About San Francisco Care Center
San Francisco Care Center, LP owns and operates a residential care
and memory facility for the elderly, with patients ranging in age
from 80 to 100 years old. The Debtor provides services to assist
residents with their daily activities, such as feeding, bathing,
dressing, medication management, toileting and mobility support.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-30025) on January 14,
2025. In the petition signed by Teresa Wong, managing partner, the
Debtor disclosed up to $50 million in both assets and liabilities.
Sarah Stuppi, Esq., at Law Offices of Stuppi & Stuppi, represents
the Debtor as legal counsel.
SBB SHIPPING: Gets Extension to Access Cash Collateral
------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey issued a
second interim order allowing SBB Shipping USA, Inc. to continue to
use cash collateral to fund its operations.
The company's authorization for interim use of cash collateral is
limited such that payroll shall only be paid to a non-insider
employee, Emre Erdinc, as indicated on its revised 13-week
cash-flow projection.
SBB's 13-week cash-flow projection shows total weekly expenses
ranging from $6,653 to $19,753.
Secured creditors, including the U.S. Small Business
Administration, Popular Bank, Bayfirst National Bank, American
Express, and Aspire Funding, were granted post-petition replacement
liens on the cash collateral to the extent that their
pre-bankruptcy liens were valid, perfected, and enforceable.
As additional protection, Popular Bank will receive monthly
payments of $12,000 starting this month.
A final hearing is scheduled for Feb. 27.
Popular Bank can be reached through its counsel:
Tae Hyun Whang, Esq.
Law Offices of Tae H. Whang, LLC
185 Bridge Plaza North, Suite 201
Fort Lee, NJ 07024
(201) 461-0300
Bayfirst can be reached through its counsel:
Rebecca K. McDowell, Esq.
Saldutti Law Group
1040 N. Kings Highway, Suite 100
Cherry Hill, NJ 08034
Email: rmcdowell@slgcollect.com
About SBB Shipping USA Inc.
SBB Shipping USA Inc. offers JIT and tailor-made international
logistics and fulfillment services.
SBB Shipping USA Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-22278) on December 14,
2024. In the petition filed by Batuhan Cakmak, as president, the
Debtor reports estimated assets between $1 million and $10 million
and estimated liabilities between $10 million and $50 million.
Honorable Bankruptcy Judge Vincent F. Papalia handles the case.
The Debtor is represented by:
David Stevens, Esq.
SCURA WIGFIELD, HEYER, STEVENS & CAMMAROTA LLP
1599 Hamburg Turnpike
Wayne NJ 07470
Tel: 201-490-4777
Email: dstevens@scura.com
SBF VENTURES: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: SBF Ventures, LLC
239 Causeway Street M120
Boston, MA 02114
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 25-10217
Judge: Hon. Christopher J Panos
Debtor's Counsel: Gary W. Cruickshank, Esq.
GARY W. CRUICKSHANK
101 Federal Street
Suite 1900
Boston, MA 02110
Tel: 617-330-1960
Email: gwc@cruickshank-law.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Christian Silvestri as manager.
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/II2DDDY/SBF_Ventures_LLC__mabke-25-10217__0001.0.pdf?mcid=tGE4TAMA
SCANROCK OIL & GAS: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Scanrock Oil & Gas, Inc.
8180 Lakeview Center, Ste. 300
Odessa, TX 79769
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 25-90001
Judge: Hon. Mark X Mullin
Debtor's Counsel: Thomas D. Berghman, Esq.
MUNSCH HARDT KOPF & HARR, P.C.
500 N. Ackard St, Ste. 4000
Dallas, TX 75201
Tel: 214-855-7500
Email: tberghman@munsch.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $50 million to $100 million
The petition was signed by Ryan C. Hoerauf 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/MK235JY/Scanrock_Oil__Gas_Inc__txnbke-25-90001__0001.0.pdf?mcid=tGE4TAMA
SOFT PACKAGING: Seeks Approval to Hire Peter M. Hsu as Accountant
-----------------------------------------------------------------
Soft Packaging, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ Peter M. Hsu, CPA,
APC as accountant.
The firm will prepare and provide financial reporting to be made in
connection with this Chapter 11 case, including but not limited to
income and expense reports, financial statements, tax returns.
The firm will be paid a flat fee of $300 for each quarter sales
taxes and a $6,000 flat fee for tax return preparation.
Peter Hsu, president, disclosed in a court filing that the firm is
a "disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Peter M. Hsu, CPA
Peter M. Hsu, CPA, APC
3641 Norwich Place
Rowland Heights, CA 91748
Telephone: (562) 275-3415
Email: peterhsu@peterhsucpa.com
About Soft Packaging
Soft Packaging Inc. operates as a packaging company in Commerce,
California.
Soft Packaging filed Chapter 11 petition (Bankr. C.D. Cal. Case No.
25-10214) on January 13, 2025. In its petition, the Debtor reported
assets up to $50,000 and liabilities between $1 million and $10
million.
Judge Vincent P. Zurzolo handles the case.
The Debtor tapped Matthew D. Resnik, Esq., at RHM Law LLP as
counsel and Peter M. Hsu, CPA, APC as accountant.
SOUL WELLNESS: Gets Six-Month Extension to Access Cash Collateral
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Miami Division, granted Soul Wellness, LLC final authorization to
use cash collateral from Jan. 1 to June 30.
The final order authorized the company to use cash collateral to
fund its business operations in accordance with its six-month
budget.
The budget shows a projected monthly revenue of $69,000 and
projected monthly expenses of $68,008.
The U.S. Small Business Administration, the company's secured
creditor, does not object to the
budget.
As protection for the use of its cash collateral, the SBA will be
granted a replacement lien on all property acquired or generated
post-petition by the company to the same extent and with the same
priority as its pre-bankruptcy liens. This replacement lien is
junior only to the allowed
claims for fees and costs of the Subchapter V trustee and the
company's legal counsel.
About Soul Wellness
Soul Wellness, LLC operates a wellness and fitness gym, with a
concentration on CrossFit, Olympic weightlifting and power lifting.
It also offers classes in yoga, Pilates, run fitness, and
jujitsu gym. In addition to the general gym offerings, Soul
Wellness operates a youth specific fitness program for high school
students, and offers discounted programs for public school teachers
and personalized training for disabled children.
Soul Wellness filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-23368) on
December 20, 2024, listing up to $50,000 in assets and up to $1
million in liabilities. Tarek Kiem, Esq., at Kiem Law, PLLC serves
as Subchapter V trustee.
Judge Laurel M. Isicoff oversees the case.
The Debtor is represented by:
Jacqueline Calderin, Esq.
Agentis PLLC
45 Almeria Avenue
Coral Gables, FL 33134
Telephone: (305) 722-2002
Email: jc@agentislaw.com
SS INNOVATIONS: CEO Provides $17MM Financing Via Convertible Notes
------------------------------------------------------------------
SS Innovations International, Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that Dr.
Sudhir Srivastava, its Chairman and Chief Executive Officer,
through his Bahamian holding company, Sushruta Pvt Ltd., has
provided the Company with $2 million in financing on December 4,
2024, $5 million in financing on January 3, 2025 and an additional
$10 million in financing on January 20, 2025.
Dr. Srivastava has also advised the Company that he intends to
provide an undetermined amount of additional financing to support
the Company's financial needs for capacity expansion and increased
working capital requirements as it expands its business during
2025. Each tranche of financing provided by Dr. Srivastava is
evidenced by a one-year convertible promissory note.
The One-Year Notes bear interest at the rate of 7% per annum, which
accrues and is due at maturity. The One-Year Notes are convertible
at the option of the holder at a conversion price of $1.38 per
share at maturity, or upon the earlier of completion of a Qualified
Sale (as defined in the One-Year Notes). The conversion price is
subject to adjustment for stock splits, stock dividends and similar
recapitalization events.
The One-Year Notes were issued in accordance with the exemption
from registration afforded by Section 4(a)(2) of and Rule 506(b) of
Regulation D under the Securities Act of 1933, as amended, as the
Company was provided with appropriate representations as to
Sushruta's investment intent and its status as an "accredited
investor" as defined in Rule 501(a) of Regulation D.
About SS Innovations International
SS Innovations International, Inc. (OTC: SSII) is a developer of
innovative surgical robotic technologies headquartered in Gurugram,
Haryana, India. The company's vision is to make robotic surgery
benefits more affordable and accessible globally. SSII's product
range includes its proprietary "SSi Mantra" surgical robotic system
and "SSi Mudra," a broad array of surgical instruments for various
procedures, including robotic cardiac surgery. The company plans to
expand its presence with technologically advanced, user-friendly,
and cost-effective surgical robotic solutions.
SS Innovations International had a net loss of $20.94 million for
the year ended December 31, 2023. As of June 30, 2024, SS
Innovations International had $38.32 million in total assets,
$21.33 million in total liabilities, and $16.98 million in total
stockholders' equity.
Lakewood, Colo.-based BF Borgers CPA PC, the Company's former
auditor, issued a "going concern" qualification in its report dated
March 22, 2024, citing recurring losses from operations that raise
substantial doubt about the Company's ability to continue as a
going concern.
On May 13, 2024, SS Innovations dismissed BF Borgers CPA PC as its
independent registered public accounting firm 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 PCAOB standards in audits and reviews included in over 1,500
SEC filings from January 2021 through June 2023. The charges
included false representations of compliance with PCAOB standards,
fabrication of audit documentation, and false statements in audit
reports. Borgers agreed to a $14 million civil penalty and a
permanent suspension from practicing before the Commission.
On May 29, 2024, SS Innovations engaged BDO India LLP as its new
independent registered public accounting firm. This engagement was
approved by the Company's board of directors through unanimous
written consent in lieu of a meeting dated May 23, 2024.
STAR TRANSPORTATION: Taps Gregerson Rosow as Special Counsel
------------------------------------------------------------
Star Transportation PA Inc. and its affiliates seek approval from
the U.S. Bankruptcy Court for the Southern District of Florida to
employ Gregerson, Rosow, Johnson & Nilan, Ltd. as special
litigation counsel.
The firm will represent the Debtors in connection with litigation
arising from an accident that occurred on August 19, 2023 in
Willmar, Minnesota.
The firm will receive a fee, in exchange for its services, in an
amount equal to one-third of any recovery, whether by settlement or
by trial.
Jacob Merkel, Esq., a shareholder of Gregerson Rosow Johnson Nilan,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Jacob T. Merkel, Esq.
Gregerson Rosow Johnson Nilan Ltd
100 Washington Ave S #1550
Minneapolis, MN 55401
Phone: (612) 338-0755
Email: jmerkel@grjn.com
About Star Transportation PA Inc.
Star Transportation PA, Inc. offers specialized freight trucking
services in Miami, Fla.
Star Transportation sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-21557) on November 1,
2024, with $1 million to $10 million in assets and $10 million to
$50 million in liabilities. Victor Khramov, president of Star
Transportation, signed the petition.
Judge Corali Lopez-Castro oversees the case.
The Debtor is represented by Joseph A. Pack, Esq., at Pack Law.
STEPHENS GARAGE: Seeks to Hire Patrick J. Gros CPA as Accountant
----------------------------------------------------------------
Stephens Garage Building LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Louisiana to hire
Patrick J. Gros, CPA, A Professional Accounting Corporation as its
accountant.
The firm will render:
a. the preparation and/or amendment of the Debtor's bankruptcy
schedules;
b. the preparation of the Debtor’s monthly operating
reports;
c. the preparation of any feasibility projections necessary or
helpful to the confirmation of a chapter 11 plan;
d. any other scheduling or calculation necessary or helpful to
the administration of the Chapter 11 Case or the confirmation of a
chapter 11 plan;
e. services as an expert witness in the field of accounting,
including the provision of expert testimony in support of a chapter
11 plan; and
f. such other necessary accounting advice and services as the
Debtor may require in
connection with this Chapter 11 Case.
Patrick J. Gros, CPA will be paid at these rates:
Patrick J. Gros, CPA $275 per hour
Manager $175 per hour
Seniors $150 per hour
Staff $105 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The firm has received a retainer in the amount of $6,000.
Patrick J. Gros, CPA, a President at Patrick J. Gros, CPA,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Patrick J. Gros
Patrick J. Gros, CPA
651 River Hignlands Boulevard
Covington, LA 70433
Tel: (985) 898-3512
Email: info@PJGrosCPA.com
About Stephens Garage Building LLC
Stephens Garage Building LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 24-12467) on
December 18, 2024. In the petition filed by Marcel Wisznia, as
manager and managing member, the Debtor reports estimated assets
and liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Meredith S. Grabill handles the case.
The Debtor is represented by Stewart F. Peck, Esq. at LUGENBUHL,
WHEATON, PECK, RANKIN & HUBBARD.
STONEPEAK NILE: S&P Rates New $500MM Senior Secured Notes 'BB'
--------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue rating and '4' recovery
rating to Stonepeak Nile Parent LLC's proposed $500 million senior
secured notes due 2032. The '4' recovery rating indicates our
expectation of average (30%-50%; rounded estimate: 40%) recovery in
the event of a hypothetical default.
The company intends to use the net proceeds to partially finance
its $3.1 billion acquisition of Air Transport Services Group Inc.
(ATSG). To complete the acquisition and retire ATSG's existing
debt, Stonepeak also intends to raise a $1.5 billion term loan and
contribute about $1.3 billion of cash common equity.
The proposed secured notes will rank pari passu with the term loan
and undrawn revolver in the first-lien debt agreement.
S&P said, "The stable outlook on the Stonepeak issuer credit rating
reflects our view that its credit metrics will likely improve in
2025, despite the higher debt servicing costs under the new capital
structure. We think a favorable impact from contract repricing,
block hour growth, and higher aircraft deployment will be the
primary contributors.
"We forecast EBIT interest coverage of 1.3x-1.5x in 2025 and
1.4x-1.6x in 2026. We see funds from operations to debt remaining
in the 18%-23% range and debt to capital remaining in the 55%-65%
range through 2027."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors:
-- S&P's 'BB' issue rating and '4' recovery rating on Stonepeak's
proposed senior secured notes indicate its expectation of average
(30%-50%; rounded estimate: 45%) recovery in the event of a
default.
-- S&P's simulated default scenario contemplates a default
occurring in 2030, due to a prolonged economic downturn that causes
Stonepeak's customers to opt out of, or decline to renew, their
leases. A material decline in the company's revenue amid rising
competition would adversely affect its margins and cash flow.
Simulated default assumptions:
-- Year of default: 2030
S&P said, "We use a discrete asset valuation to estimate the
company's enterprise value at emergence. Specifically, we
depreciate the current appraised values of all the owned aircraft
in its fleet and the engines to the default year and then apply
distressed realization rates of 40%-75%, depending on the
desirability of the assets."
Simplified waterfall:
-- Net enterprise value (after 5% administrative costs): $1.161
billion
-- Valuation split between U.S. secured facilities and the Irish
revolver: 90%/10%
-- Estimated collateral value available to secured debt at
Stonepeak Nile Parent LLC (U.S. secured debt): $1.045 billion
-- Estimated collateral value available to Irish revolver
creditors: $116 million
-- Excess value available to U.S. secured debt after satisfying
Irish revolver claims at default: $25 million
-- Total value available to U.S. secured debt (first-lien term
loan, revolver, and senior secured notes): $1.070 billion
-- Estimated U.S. secured debt at default: $2.436 billion
U.S. secured debt recovery expectations: 30%-50% (rounded estimate:
40%)
TEAK DECK: Seeks to Hire Julianne Frank as Bankruptcy Counsel
-------------------------------------------------------------
Teak Deck Company seeks approval from the U.S. Bankruptcy Court for
the Southern District of Florida to employ Julianne Frank, PA to
handle its Chapter 11 case.
The firm's counsel will be paid at these hourly rate:
Julianne Frank, Esq. $450
Paralegal $100
The firm received a retainer in the amount of $16,738 from the
Debtor.
Ms. Frank disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Julianne Frank, Esq.
Julianne Frank, PA
4495 Military Trail, Suite 107
Jupiter, FL 33458
Telephone: (561) 389-8660
Email: julianne@jrfesq.com
About Teak Deck Company
Teak Deck Company sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10818) on January 27,
2025, listing under $1 million in both assets and liabilities.
Julianne Frank, PA represents the Debtor as counsel.
TERRASCEND CORP: Announces Prelim. Fourth Quarter Revenue of $74.4M
-------------------------------------------------------------------
TerrAscend Corp. issued a press release on January 31 presenting
its preliminary and unaudited selected financial results for the
quarter ended Dec. 31, 2024.
For the fourth quarter of 2024, the Company anticipates:
* Net Revenue of $74.4 million, up 0.3% from $74.2 million in
the
third quarter of 2024.
* Gross Profit Margin of 50.2%, up 140 basis points from 48.8%
in
the third quarter of 2024.
* General and Administrative expenses decreased quarter-over-
quarter.
* Generated Positive Cashflow from Operations in the quarter.
"Despite a challenging environment, the business performed ahead of
our expectations during the fourth quarter of 2024, delivering
positive sequential revenue growth with an expansion of gross
margin to 50.2% and a reduction in operating expenses. With our
recent refinancing completed, which extended the vast majority of
our debt maturities to late 2028, the team was able to fully focus
on operational improvements in the fourth quarter. We are excited
about a possible adult use bill passing in Pennsylvania, which will
enable us to fully utilize our large scale 150k square foot
cultivation and manufacturing facility in the state. We look
forward to the Governor's budget address next week where we believe
he will outline his strongest case yet for a state recreational
program. The fourth quarter results give us confidence in 2025 as
we focus on driving operational efficiencies and growth in our core
business while judiciously pursuing multiple greenfield expansion
opportunities at increasingly attractive prices," stated Jason
Wild, Executive Chairman of TerrAscend.
Fourth Quarter Operational Highlights
* Retained the #1 market share position in New Jersey for all
quarters of 2024, according to BDSA.
* Grew revenue in Maryland for the fourth consecutive quarter
and
expanded gross margin to over 50%.
* Commenced preparation for Pennsylvania adult use
implementation, leveraging the Company's 150k sq ft
cultivation
and manufacturing facility and Apothecarium retail network.
* Signed Ohio Ratio Cannabis deal which is expected to close in
the first quarter of 2024, marking the Company's entry into
its
6th state.
Conference Call Details:
The Company will host a conference call to discuss the results for
its fourth quarter and full year ended Dec. 31, 2024 on Thursday,
March 6, 2025 at 5:00 p.m. Eastern Time. The Company will report
its financial results for the fourth quarter and full year 2024 the
same day after market close.
Date: Thursday, March 6, 2025
Time: 5:00 p.m. Eastern Time
Webcast: https://app.webinar.net/MnqwOWP3G5o
Dial-in Number: 1-888-510-2154
Replay: 1-289-819-1450 or 1-888-660-6345
Available until 12:00 midnight Eastern Time on Thursday, March 20,
2025
Replay Entry Code: 33966#
About TerrAscend
TerrAscend -- www.terrascend.com -- is a TSX-listed cannabis
company with interests across the North American cannabis sector,
including vertically integrated operations in Pennsylvania, New
Jersey, Maryland, Michigan and California through TerrAscend Growth
Corp. and retail operations in Canada through TerrAscend Canada
Inc. TerrAscend operates The Apothecarium, Gage and other
dispensary retail locations as well as scaled cultivation,
processing, and manufacturing facilities in its core markets.
TerrAscend's cultivation and manufacturing practices yield
consistent, high-quality cannabis, providing industry-leading
product selection to both the medical and legal adult-use markets.
The Company owns or licenses several synergistic businesses and
brands including Gage Cannabis, The Apothecarium, Cookies,
Lemonnade, Ilera Healthcare, Kind Tree, Legend, State Flower, Wana,
and Valhalla Confections.
Toronto, Canada-based MNP LLP, the Company's auditor since 2017,
issued a "going concern" qualification in its report dated March
14, 2024. The report cites that the Company has incurred a net
loss from continuing operations and has a net capital deficiency,
that raise substantial doubt about its ability to continue as a
going concern.
At December 31, 2023, the Company had an accumulated deficit of
$704.16 million and cash and cash equivalents of $22.24 million.
During the year ended Dec. 31, 2023, the Company incurred a net
loss from continuing operations of $82.29 million. Additionally,
as of Dec. 31, 2023, the Company had a net capital deficiency. The
Company stated that it anticipates needing additional capital to
sustain its operations.
TEXAS WHEEL: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Texas Wheel Repair Express 360 LLC
2528 Farrington St
Dallas, TX 75207-5906
Business Description: Wheel Repair 360 specializes in the
straightening, repair, replacement, and
refinishing of aluminum and alloy wheels.
The company provides services to fix common
wheel damage such as curb scrapes,
scratches, chips, and potholes, restoring
wheels to near-new condition. By offering
specialized solutions like powder coating,
machining, welding, and straightening, Wheel
Repair 360 helps businesses like new and
used car dealerships, body shops, tire
stores, and mechanic shops save both time
and money.
Chapter 11 Petition Date: February 3, 2025
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 25-30409
Judge: Hon. Scott W Everett
Debtor's Counsel: Robert C. Lane, Esq.
THE LANE LAW FIRM
6200 Savoy Dr Ste 1150
Houston TX 77036-3369
Tel: (713) 595-8200
E-mail: notifications@lanelaw.com
Total Assets: $338,188
Total Debts: $1,101,411
The petition was signed by Billy Walton as managing member.
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/QRAW3DA/TEXAS_WHEEL_REPAIR_EXPRESS_360__txnbke-25-30409__0001.0.pdf?mcid=tGE4TAMA
THREE SEAS: Gets Final OK to Use Cash Collateral
------------------------------------------------
Three Seas Atlanta, LLC received final approval from the U.S.
Bankruptcy Court for the Western District of North Carolina to use
cash collateral.
The final order signed by Judge Ashley Austin Edwards authorized
the company to utilize cash collateral to pay operating expenses
set forth in its budget, which shows $44,975 in weekly expenses.
The company's expenses must not exceed the budget by more than 10%
per line item on a cumulative four-week rolling period basis.
The final order granted creditors replacement liens on the
company's property with the same priority as their pre-bankruptcy
liens.
About Three Seas Atlanta
Three Seas Atlanta, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. N.C. Case No.
24-30881) on October 8, 2024, listing up to $50,000 in assets and
up to $1 million in liabilities.
Judge Ashley Austin Edwards presides over the case.
The Debtor is represented by:
John C. Woodman
Essex Richards
Tel: 704-377-4300
Email: jwoodman@essexrichards.com
TIMELINE CONSTRUCTION: Court Denies Bid to Use Cash Collateral
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas denied
Timeline Construction, LLC's motion to authorize use of cash
collateral.
Timeline Construction requested last month to use the cash
collateral of secured creditors, including the U.S. Small Business
Administration and BOKF, NA, doing business as Bank of Texas.
The company said it requires the use of cash collateral to meet
regular expenses needed to continue its business operations,
including payroll and vendor payments.
About Timeline Construction
Timeline Construction, LLC is a full-service construction company
in Houston, Texas, specializing in high-end residential and
commercial construction, build-outs, remodeling, and renovations.
Timeline Construction filed Chapter 11 petition (Bankr. S.D. Texas
Case No. 25-30212) on January 10, 2025, with between $10 million
and $50 million in both assets and liabilities.
Thomas F. Jones, III, Esq., at the Law Office of Thomas F. Jones,
III represents the Debtor as bankruptcy counsel.
TROLLMAN ENTERPRISES: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------------
The U.S. Trustee for Region 9 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Trollman Enterprises, LLC.
About Trollman Enterprises
Trollman Enterprises, LLC filed Chapter 11 petition (Bankr. E.D.
Mich. Case No. 24-32448) on December 30, 2024. In its petition, the
Debtor reported assets between $500,000 and $1 million and
liabilities between $100,000 and $500,000.
Judge Joel D. Applebaum handles the case.
The Debtor is represented by George E. Jacobs, Esq., at Bankruptcy
Law Offices.
VERDE RESOURCES: Sells La Belle Property to TAFleer for $350K
-------------------------------------------------------------
Verde Resources, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company, through
Verde Estates LLC, entered into a Purchase and Sale Agreement to
sell its property in La Belle, Missouri to TAFleer Properties LLC,
a Missouri limited liability company.
Under the terms of the Agreement, the proceeds for the sale of the
Property shall be USD 350,000 to be paid in full by the Buyer at
closing, in cash or by bank draft or money order. The disposition
of the Property was completed on January 17.
Verde Estates is a Missouri limited liability company and is a
wholly-owned subsidiary of Verde Renewables, Inc., a wholly-owned
subsidiary of Verde Resources.
About Verde Resources
Headquartered in St. Louis, MO, Verde Resources, Inc. specializes
in Net Zero road construction and building materials, driving
innovations that enhance sustainability and advance environmental
stewardship. Since 2021, the Company's BioFraction facility in
Borneo has been converting palm waste into biochar and other
sustainable byproducts.
Kuala Lumpur, Malaysia-based J&S Associate PLT, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated Oct. 16, 2024, citing that the Company has generated
recurring losses and suffered from an accumulated deficit of
$13,480,204 as of June 30, 2024. These matters raise substantial
doubt about the Company's ability to continue as a going concern.
VERMILION ENERGY: Fitch Assigns BB- Rating on Sr. Unsecured Notes
-----------------------------------------------------------------
Fitch Ratings has assigned a 'BB-' rating and a Recovery Rating of
'RR4' to Vermilion Energy Inc.'s proposed senior unsecured note.
The Issuer Default Rating (IDR) and other issue-level rating are
unaffected. Vermilion plans to use the proposed proceeds to redeem
the 2025 notes and help fund the acquisition of Westbrick Energy
Ltd. The note issuance accompanies an expansion of the company's
syndicated Term Loan A facility from $250 million to $450 million.
Vermilion's rating reflects its diversified asset base and exposure
to higher-priced European oil and gas indices compared to North
American peers, along with a material hedging program. These
strengths are balanced by a smaller production size within its
rating category, limited scale in fields outside of North America,
and increased debt and natural gas exposure in North America.
The Negative Rating Outlook reflects increased debt and impaired
liquidity, along with uncertainty about the company's ability to
reduce debt due to increased natural gas exposure and expected
higher capital requirements.
Fitch plans to withdraw the issue-level rating of 'BB-'/'RR4' upon
redemption of the senior unsecured notes maturing in March 2025.
Key Rating Drivers
Significant Acquisition: Vermilion's announced acquisition of
Westbrick significantly increases size and scale while positioning
the company more firmly in North America with a gas-weighted
orientation. The acquisition includes 50 mboepd of production in
the Alberta Deep Basin with 75% of production being natural gas.
The material growth in size and scale is offset by 100% debt
funding, expected weaker per unit netbacks given increased exposure
to natural gas and North American pricing, and elevated capex
reflecting increased scale.
Increased Debt and Leverage: Significant debt issuances to fund the
acquisition of Westbrick lead to heightened leverage metrics
through-the-cycle new debt will take the form of draws on the
company's revolver and the exercise of a $450 million accordion
term loan. Additionally, the company has entered into a 364-day
$300 million bridging loan which will be terminated upon closing of
this note issuance. Fitch expects leverage to be significantly
elevated above historical levels in the near-term while remaining
within leverage sensitivities. Management intends to utilize FCF
and potential asset sales to reduce debt.
Increased Gas Exposure: The increased exposure to North American
gas will lead to decreased per unit netbacks relative to
liquids-weighted peers. However, Vermilion's netbacks will continue
to outpace gas-weighted issuers due to material liquids exposure as
well as benefits from elevated international pricing. Continued
weakness in North American gas pricing has the potential to reduce
cash flow generation in the medium-term, particularly if oil prices
moderate. Increased capex due to the increased production profile
and reduced netbacks will likely reduce FCF in a midcycle
environment.
Impaired Financial Flexibility: Vermilion's planned draws on the
revolver, accordion term loan and note issuance will have a
materially negative impact on the company's financial flexibility.
The announced bridging facility mitigates the short-term risk of
the March 2025 maturity, however weak natural prices and
corresponding netbacks have the potential to further strain the
company's liquidity position into 2025.
Updated Capital Allocation Policy: Management has reduced its
return to shareholder return commitment from 50% to 40% of excess
FCF while also raising the dividend from $0.12/qtr to $0.13/qtr.
Remaining excess FCF will be allocated towards debt reduction.
Additionally, management has indicated an interest in divesting
certain non-core assets in North America. Proceeds would be
targeted towards debt reduction.
Diversified Asset Base: Vermilion's asset base is notable among
peers, given the material level of geographic diversification
relative to its size. Its pro-forma asset base is focused on North
America but with material exposure to Europe and Australia. The
company's ability to achieve elevated international pricing
supports cash flows during weaker environments in North America.
Vermilion has production split among Canada, France, Germany, the
Netherlands, the U.S., Australia, Ireland, and Central and Eastern
Europe.
Hedging Program: The company has hedged approximately 50% of its
natural gas production in Europe for 2025 and about 35% of its oil
production for 1Q25. Management intends to target hedge positions
of 50% of production in 2025 and 2026.
Derivation Summary
Pro-forma of the acquisition, Vermilion will be larger than MEG
Energy (MEG; BB-/Stable) and smaller than Baytex Energy (Baytex;
BB-/Stable) with production significantly more gas-weighted than
its peers. MEG and Baytex both have higher netbacks given their
liquids exposure but this is somewhat tempered by Vermilion's
international pricing advantage.
International price exposure allows Vermilion to outperform the
netbacks of similarly (Crescent Energy Company; BB-/Stable) or more
(Ascent Resources Utica Holdings, LLC; B+/Positive) gas-weighted
producers. Both Crescent and Ascent operate with significantly more
scale than pro-forma Vermilion.
Post-acquisition Vermilion's gross debt pile will be comparable to
Baytex and significantly above MEG, while remaining well below
Crescent and Ascent.
Key Assumptions
- West Texas Intermediate oil price of USD65 in 2025 and USD60 in
2026 and 2027, and USD57 in the long term;
- Brent oil price of USD70 in 2025 and USD65 in 2026 and 2027, and
USD60 in the long term;
- Henry Hub natural gas USD2.50 per thousand cubic feet (mcf) in
2025, USD2.75 in 2026, 2027 and the long term;
- Title Transfer Facility natural gas USD11.00 per thousand cubic
feet (mcf) in 2025, USD8.00 in 2026, USD7.00 in 2027, and USD5.00
in the long term;
- Some asset sales with proceeds used for deleveraging;
- Capital allocation policy;
- Interest-rate assumptions aligned with Chatham Financial Fed
median through the forecast;
- No windfall tax impact throughout the forecast.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to materially reduce debt or further impairment of
financial flexibility;
- Material deterioration in netbacks driven by lower realizations
or increased unit costs;
- Deviation from a financial policy that emphasizes debt reduction
before Vermilion's stated targets are met;
- Mid-cycle EBITDA Leverage above 3.0x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch may reassess Vermilion's credit profile if the terms of the
acquisition are materially altered;
- Production approaching 175,000 boepd;
- Increased scale in existing positions, with greater drilling
inventory, a higher reserve life and the ability to develop new
inventory while improving margins;
- Mid-cycle EBITDA leverage below 2.0x.
Liquidity and Debt Structure
At close of the announced transaction, Vermilion's $1.6 billion
revolving credit facility will be materially drawn in addition to
the exercise of the $250 million accordion term loan. Fitch views
these actions as materially weakening the company's liquidity
profile.
Vermilion's USD300 million unsecured notes mature in 2025. Fitch
believes Vermilion will have adequate capital market access needed
to address the maturity in a timely fashion. The company's revolver
matures in 2028 and its USD400 million unsecured notes mature in
2030.
Issuer Profile
Vermilion Energy Inc. is a small-to-medium sized diversified
international E&P company with production primarily in North
America, Europe, and Australia.
Date of Relevant Committee
Dec 18, 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
----------- ------ --------
Vermilion Energy Inc.
senior unsecured LT BB- New Rating RR4
VIA MIZNER: Seeks to Hire Greenberg Traurig as Special Counsel
--------------------------------------------------------------
Via Mizner Owner I, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ Greenberg
Traurig, PA as special counsel for real estate transactions.
The firm's counsel and staff will be paid at these hourly rate:
Bruce Rosetto, Shareholder $1,100
Marcia Langley, Attorney $825
Paralegals $570
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Rosetto disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Bruce Rosetto, Esq.
Greenberg Traurig, PA
777 S. Flagler Dr., Suite 300 East
West Palm Beach, FL 33401
Telephone: (561) 650-7940
Facsimile: (561) 655-6222
Email: osettob@gtlaw.com
About Via Mizner Owner I LLC
Via Mizner Owner I LLC is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
Via Mizner Owner I sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10369) on January 15,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
Honorable Bankruptcy Judge Erik P. Kimball handles the case.
The Debtor tapped Bradley S. Shraiberg, Esq., at Shraiberg Page, PA
as bankruptcy counsel and Bruce Rosetto, Esq., at Greenberg
Traurig, PA as special counsel.
WELCOME GROUP: Plan Exclusivity Period Extended to March 1
----------------------------------------------------------
Judge Mina Nami Khorrami of the U.S. Bankruptcy Court for the
Southern District of Ohio extended Welcome Group 2, LLC, and
affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to March 1 and May 1, 2025, respectively.
As shared by Troubled Company Reporter, the Debtors claim that the
outcome of three pending motions: (i) Hilton Franchise Holdings,
LLC Motion for Relief from Stay (the "Hilton Motion"); (ii) RSS
WCFM2019-C50 OH WG2 LLC's ("RSS") Motion for Relief from the
Automatic Stay for 1600 Hampton Court, Sidney, Ohio 45365 (the "RSS
Motion"); and (iii) RSS's Motion to Appoint an Examiner (the
"Examiner Motion") will have a substantial impact on the formation
of a Plan of Reorganization.
The Debtors assert that there is still discovery ongoing and
remaining issues in the Hilton Motion to be determined by this
Court, which will not likely be finalized before the Court for
several months, while the Court has recently rendered its decision
as to the issue of the actual v hypothetical test.
The Debtors further assert that a final decision on the RSS Motion
and Examiner Motion are not likely to be handed down for several
months as the briefing deadlines are currently set for October.
Further, the parties are still working on the issues presented in
the Examiner Motion.
Counsel for the Debtors:
Darlene E. Fierle, Esq.
Ira H. Thomsen, Esq.
Denis E. Blasius, Esq.
THOMSEN LAW GROUP, LLC
140 North Main Street, Suite A
Springboro, OH 45066
Telephone: (937) 748-5001
Facsimile: (937) 748-5003
Email: ithomsen@ihtlaw.com
dfierle@ihtlaw.com
dblasius@ihtlaw.com
About Welcome Group 2
Welcome Group 2, LLC, Hilliard Hotels, LLC and Dayton Hotels, LLC
own hotels and are headquartered at 5955 E. Dublin Granville Road,
New Albany, Ohio. Debtor Hilliard Hotels owns the Hampton
Inn-Sidney, a Hilton property.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Lead Case No. 23-53043) on Sept.
1, 2023. In the petition signed by Abhijit Vasani, as president,
InnVite Opco, Inc., sole member, the Debtor disclosed up to $10
million in both assets and liabilities.
Judge Mina Nami Khorrami oversees the case.
Denis E. Blasius, Esq., at Thomsen Law Group, LLC, is the Debtor's
legal counsel.
WILL NOT SELL: Hires Sagre Law Firm PA as Bankruptcy Counsel
------------------------------------------------------------
Will Not Sell LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of Florida to hire Sagre Law Firm, P.A. as
counsel.
The firm will provide these services:
(a) advise the Debtor with respect to its powers and duties in
the continued management of its business operations;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S Trustee's Operating Guidelines and Reporting
Requirements and with the rules of the court;
(c) prepare legal papers;
(d) protect the interest of the Debtor in all matters pending
before the court; and
(e) represent the Debtor in negotiations with its creditors in
the preparation of the plan.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Ariel Sagre, Esq., president and owner of Sagre Law Firm, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Ariel Sagre, Esq.
Sagre Law Firm PA
5201 Blue Lagoon Drive, Suite 892
Miami, FL 33126
Telephone: (305) 266-5999
Facsimile: (305) 265-6223
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.
WILSON CREEK: Seeks to Hire Stikeman Elliot as Canadian Counsel
---------------------------------------------------------------
Wilson Creek Energy, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Western District of Pennsylvania to
employ Stikeman Elliot LLP as Canadian counsel.
The firm will provide these services:
(a) advise the Debtors with respect to their powers and duties
in the Canadian proceedings;
(b) advise and consult with lead counsel on the conduct of the
Canadian proceedings;
(c) represent the Debtors at all hearings in the Canadian
proceedings;
(d) take all necessary actions to protect and preserve the
Debtors' estate;
(e) prepare necessary pleadings in connection with these
Chapter 11 cases; and
(j) perform all other necessary legal services for the Debtors
in connection with these Chapter 11 cases and in the Canadian
proceedings.
The firm will be paid at these hourly rates:
Partners and Senior Counsel $1,150 - $1,750
Associates $635 - $750
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an advance retainer of $75,000 from the Debtors.
Maria Konyukhova, Esq., an attorney at Stikeman Elliot, also
provided the following in response to the request for additional
information set forth in Section D of the Revised U.S. Trustee
Guidelines:
Question: Did Stikeman agree to any variations from, or
alternatives to its standard billing arrangements for this
engagement?
Answer: No.
Question: Do any of the Stikeman professionals in the
engagement vary their rate based on the geographical location of
the Debtors' Chapter 11 cases?
Answer: No.
Question: If Stikeman has represented the Debtors in the 12
months prepetition, disclose Stikeman's billing rates and material
financial terms for the prepetition engagement, including any
adjustments during the 12 months prepetition. If Stikeman's billing
rates and material financial terms have changed postpetition
explain the differences and the reasons for the difference.
Answer: Stikeman was engaged by Corsa in 2013. Stikeman's
billing rates previously included a 10 percent discount on ordinary
course public issue work (but not transactional work) and have
remained the same other than the regular annual adjustments (as
described above).
Question: Have the Debtors approved Stikeman's budget and
staffing plan, and, if so, for what budget period?
Answer: The proposed budget for professional fees is set forth
in the budget that has been approved by the client and the court in
connection with the Interim Modified Order Granting Debtors'
Emergency Motion for Entry of Interim and Final Orders (I)
Authorizing the Debtors to Obtain Post-Petition Financing, (II)
Authorizing the Debtors to Use Cash Collateral, (III) Granting
Liens and Providing Superpriority Administrative Expense Status,
(IV) Approving Adequate Protection, (V) Modifying the Automatic
Stay, (VI) Scheduling a Final Hearing, and (VII) Granting Related
Relief.
Ms. Konyukhova disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Maria Konyukhova, Esq.
Stikeman Elliot LLP
5300 Commerce Court West
199 Bay Street
Toronto Ontario M5L 1B9, Canada
Telephone: (416) 869-5230
Facsimile: (416) 947-0866
Email: mkonyukhova@stikeman.com
About Wilson Creek Energy
Through their U.S.-based operating subsidiaries, Wilson Creek
Energy, LLC and its affiliates supply premium-quality metallurgical
coal, an essential ingredient in steel production. The Debtors'
core business involves the mining, production and supply of
premium-quality metallurgical coal, which is sold to both domestic
and international steel and coke producers. The sources of the
Debtors' metallurgical coal include (i) coal that the Debtors
produce, and (ii) coal that the Debtors purchase from third
parties, which they then enhance through value-added services such
as storing, washing, blending, and loading, making the coal
suitable for sale.
The Debtors' headquarter is located in Friedens, Somerset County,
Pa. All the Debtors' physical assets, mining operations and
employees are based in Somerset County, Pa., and Garrett County,
Md.
Wilson Creek Energy and 10 affiliates filed Chapter 11 petitions
(Bankr. W.D. Pa. Lead Case No. 25-70001) on January 6, 2025. At the
time of the filing, Wilson Creek Energy reported $50 million to
$100 million in assets and $10 million to $50 million in
liabilities.
Judge Jeffery A. Deller presides over the cases.
The Debtors tapped Raines Feldman Littrell, LLP as bankruptcy
counsel; Stikeman Elliott, LLP as Canadian insolvency counsel; BDO
USA as financial advisor and consultant; and
PricewaterhouseCoopers, LLP as Canadian information officer. Omni
Agent Solutions, Inc. serves as the Debtors' claims and noticing
agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
WRESTLING COLLECTOR: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------------
Wrestling Collector Shop, LLC got the green light from the U.S.
Bankruptcy Court for the Southern District of Texas, Houston
Division, to use its lenders' cash collateral.
The company requires the use of cash collateral to purchase
inventory and pay operating expenses in the ordinary course of the
business.
The creditors that purport to hold liens or security interests in
the company's inventory and accounts are ODK Capital, LLC, also
known as On Deck; Funding Metrics, LLC, doing business as Lendini;
Fundation Group, LLC; Corporation Services Company, as
representative for East Hudson Capital, LLC, doing business as
Global Capital Experts; and Camino Financial SPV I.
As adequate protection, the lenders will continue to have the same
liens, encumbrances, and security interests in the cash collateral
generated or created post-filing.
A final hearing is scheduled for Feb. 19.
Global Capital Experts is represented by:
Broocks "Mack" Wilson, Esq.
Wilson PLLC
708 Main Street, 10th Floor
Houston, Texas 77002
Phone: 713-320-8690
Email: mack@wilson-pllc.com
About Wrestling Collector Shop
Wrestling Collector Shop, LLC a specialty retailer based in
Cypress, Texas.
Wrestling Collector Shop sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No.
25-30276) on January 15, 2025, listing up to $50,000 in assets and
between $100,000 and $500,000 in liabilities. Jarrod Martin, Esq.,
a practicing attorney in Houston, serves as Subchapter V trustee.
Judge Alfredo R. Perez handles the case.
The Debtor is represented by Reese W. Baker, Esq., at Baker &
Associates.
WYNNE TRANSPORTATION: Taps Ordinary Course Professionals
--------------------------------------------------------
Wynne Transportation Holdings, LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the District of Delaware to
retain non-bankruptcy professionals in the ordinary course of
business.
The Debtors need ordinary course professionals to perform services
for matters unrelated to these Chapter 11 cases.
The Debtors seek to pay OCPs 100 percent of the fees and expenses
incurred.
The Debtors do not believe that any of the ordinary course
professionals have an interest materially adverse to them, their
estates, creditors, or other parties in interest in connection with
the matter upon which they are to be engaged.
The OCPs include:
a. Andrews Myers, P.C.
1885 Saint James Place, 15th Floor
Houston, TX 77056
Legal: GETZ Litigation Plaintiff
b. Crowe Fleet Management
11114 Autumn Mist Cv
Magnolia, TX 77354
Tax: IFTA Reporting
c. Esbrook Law, P.C.
321 N Clark Street, Suite 1930
Chicago, IL 60654
Legal: City of Chicago Litigation Defense
d. Hanshaw Kennedy Hafen
1415 Legacy Drive, Suite 350
Frisco, TX 75034
Legal: GETZ Litigation Defense
e. Lindeman, Esq.
646 Valley Avenue, Suite C2
Solana Beach, CA 92075
Legal: General Counsel
f. Whitley Penn
8343 Douglas Avenue, Suite 400
Dallas, TX 75267-6360
Audit/Tax: K-1 Estimates and 2024 Tax Returns
About Wynne Transportation Holdings
Wynne Transportation Holdings LLC operating as U.S. Crew Change
from its Dallas headquarters, provides specialized transportation
services for industrial and emergency sectors, focusing on LNG,
petrochemical, mining, oil and gas, and construction industries.
Wynne Transportation Holdings LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10027) on
January 11, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $10 million and $50 million each.
Matthew B. McGuire, Esq., at Landis Rath & Cobb LLP, represents the
Debtor as counsel.
XPLR INFRASTRUCTURE: Fitch Affirms 'BB+' IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed the Issuer Default Ratings (IDR) of XPLR
Infrastructure, LP (XPLR; formerly NextEra Energy Partners, LP),
and its subsidiary, XPLR Infrastructure Operating Partners, LP
(XPLR Opco; formerly NextEra Energy Operating Partners, LP) at
'BB+'/Stable Outlook. Due to strong legal ties, the two IDRs are
equal. Fitch also affirmed XPLR Opco's senior unsecured notes at
'BB+' with a Recovery Rating of 'RR4'.
Fitch believes XPLR's announcement of a 100% distribution cut is
credit supportive, providing financial flexibility and addressing
funding concerns for the three convertible equity portfolio
financing (CEPF) buyouts remaining post-2025. Fitch assumes capital
spending will be financed with debt, resulting in limited headroom
in credit metrics over the forecast.
XPLR's ratings reflect stable cash flows from long-term contracted
wind, solar and natural gas pipeline assets and its sponsor
affiliation with NextEra Energy, Inc. (A-/Stable). They also
reflect financial complexity and structural subordination of holdco
debt due to limited recourse project debt financings, tax equity
and CEPF structures deployed across project subsidiaries.
Key Rating Drivers
Dividend Cut Provides Financial Flexibility: The increased use of
CEPFs has added financial complexity to the organizational
structure, making XPLR reliant on capital market stability and
strong unit price to execute buyouts timely and cost-effectively.
Unit distribution cut resolves CEPFs buyouts, consistent with
Fitch's 100% equity treatment of CEPFs. Fitch assigns 100% equity
credit to CEPFs, assuming XPLR completes its remaining CEPF buyouts
post-2025 with a combination of free cash flow and non-recourse
debt at the asset level, with no issuance of Holdco-level debt.
A unit distribution cut announced earlier today will provide
sufficient cash flow to support a buyout of $3.7 billion
outstanding under three CEPFs post-2025. The announcement completes
the strategic review initiated in 2024.
Low Leverage Headroom: Fitch expects the Holdco Debt to Parent Only
FFO ratio to remain at around 4.9x over the forecast period, in
line with the ratings, but higher than previous years. Fitch
currently assumes capex will be financed by holdco and non-recourse
project debt, resulting in limited leverage headroom. Fitch
projects modest growth through repowering of about 1.6 GWs of
existing older and lower performing assets in the next couple of
years.
To reflect strategy change to a low growth model, Fitch's adjusted
its sensitivity calculation to Holdco Debt to Parent Only FFO as of
year-end versus previous calculation using a year-end run-rate FFO.
Any material growth beyond the current plan would require equity
funding in order to preserve current ratings. Management aims to
maintain the Holdco Debt to Parent Only FFO ratio within the
4.0x-5.0x range.
Upcoming Refinancing: Fitch expects XPLR's cash flows to come under
pressure due to a substantial near-term refinancing of the capital
structure at materially higher interest rates compared to average
fixed interest rates on the current long-term debt. XPLR refinanced
$750 million of $1.25 billion of holding company debt maturing in
2024 and repaid the remaining balance with available cash on hand.
XPLR has $2.2 billion of holding company debt due through 2027 and
about $3.6 billion treasury rate locks at 4.0% intended to hedge
the upcoming refinancing and new issuances.
Asset Sales Resolve Near-term CEPF Financing: Natural gas pipelines
sales eliminated equity issuances that would otherwise require to
complete CEPF buyouts planned through 2025, a credit positive. In
Dec. 2023, XPLR sold its Texas natural gas pipeline portfolio for
$1.815 billion to Kinder Morgan, Inc. (BBB/Stable). Net proceeds of
about $1.4 billion were used to buyout approximately $750 million
of CEPFs in 2023 and 2024. The remaining net proceeds and a portion
of the cash flow from dividend distribution cut in 2025, will be
used to buy out an outstanding balance of about $950 million under
the 2019 NEP Renewables II CEPF in 2025. Fitch expects the 2019 NEP
Pipelines CEPF buyout to be completed by 2025 with the sale of the
Meade natural gas pipeline.
Long-Term Contracted Cash Flows: Fitch views favorably XPLR's
portfolio of wind, solar and natural gas pipeline assets, which
have long-term offtake arrangements with creditworthy
counterparties and minimal exposure to either volumetric or
commodity risks. The weighted average counterparty credit is 'BBB',
based on Fitch and other rating agencies. As of Dec. 31, 2024, the
renewable energy and pipeline projects had a total weighted average
remaining contract term of approximately 13 years. The
distributions that XPLR receives from its project subsidiaries are
well diversified by both fuel and geography.
Cash Flow Stability: The high proportion of wind in XPLR's
portfolio is a modest issue given wind resource intermittency.
However, a wide geographic footprint of its wind portfolio somewhat
mitigates XPLR's exposure. In addition, the project debt for
renewable projects is typically sized to yield a debt service
coverage ratio (DSCR) greater than 1.2x and generate a low
'BBB-'/'BBB' rating. The debt typically matures within the
expiration date of the long-term contracts on any project. The most
recent DSCRs provided to Fitch by XPLR indicate that most projects
with limited recourse project debt financings are performing in
excess of their DSCR thresholds allowing for cash flow
distributions to the Holdco.
Sponsor Not Expected to Financially Support XPLR: Although XPLR has
benefited from its affiliation with NextEra, which is the largest
renewable developer in the U.S. Following the name change, Fitch
expects NextEra will continue to support XPLR's operationally.
Fitch does not expect NextEra to provide equity support to XPLR for
future CEPFs buyouts nor buy into XPLR. A buy-in of XPLR would
result in a material addition of debt on NextEra's balance sheet,
as currently Fitch deconsolidates XPLR from NextEra's balance sheet
and only includes the upstream dividend distribution from XPLR in
NextEra's credit analysis. This off-credit treatment reflects
Fitch's assumption that NextEra would walk away from XPLR in the
event of financial deterioration.
Derivation Summary
Fitch views XPLR's ratings are positively positioned compared to
Atlantica Sustainable Infrastructure Plc ( BB-/Stable) due to
favorable geographic exposure, long-term contractual cash flows
with minimal regulatory risk and association with a strong
sponsor.
Like peer, Terraform Power Operating, LLC (TERPO; BB-/Stable), XPLR
has parent support. Although the company has been supported by
NextEra in terms of asset dropdowns needed to drive historically
aggressive growth targets and IDR suspension in 2023, Fitch does
not expect NextEra to support any funding needs or CEPF buyouts.
TERPO benefits from its affiliation with Brookfield Corporation
(A-/Stable), while Atlantica was taken private by Energy Capital
Partners (ECP).
Atlantica's portfolio benefits from a large proportion of solar
generation assets that exhibit less resource variability.
Comparatively, XPLR's portfolio consists of a larger exposure to
wind MWs. TERPO's utility-scale portfolio consists of 43% solar and
57% wind. XPLR's concentration in wind is mitigated somewhat by its
diverse geographic footprint. Fitch views XPLR's geographic
exposure in the U.S. (100%) favorably compared to TERPO's (68%) and
Atlantica's (30%). XPLR's long-term contracted fleet has a
remaining contracted life of 13 years, which is higher than
Atlantica's 12 years and TERPO's 11 years.
XPLR's forecasted credit metrics are stronger than TERPO's and
Atlantica's. Fitch forecasts XPLR's Holdco Debt to Parent Only FFO
ratio will remain around 4.9x over the forecast period, compared
with around mid-5.0x for TERPO and below 6.0x for Atlantica
post-2025. Fitch rates XPLR, Atlantica and TERPO based on a
deconsolidated approach since their portfolio comprises assets
financed using non-recourse project debt or with tax equity. XPLR's
financing model is more complex as it also involves CEPF. Fitch
defines Parent Only FFO as project distributions less holdco
general and administrative (G&A) expenses, fee for management
service agreement, credit fees and holdco debt service costs.
Key Assumptions
- Buyout of 2019 NEP Renewables II and NEP Pipelines CEPF with
proceeds from STX and Meade pipelines sales;
- Interest expense rate on new and refinanced holdco debt around
7.5%;
- None of the project debt treated on-credit, which includes
Fitch's assumption of future project debt issuances;
- Net Holdco debt of approximately $800 million issued from 2025
through 2027; all maturing convertible debt repaid;
- Capex of approximately $1.8 billion in 2025-2026 financed with
nonrecourse and Holdco debt;
- 2020 and 2022 CEPF buyouts funded with free cash flow;
- 2021 Apollo CEPF sold at no gain in 2027;
- 100% Unit distribution cut and not distributions over the
forecast period;
- No CEPF nor equity issuance over the forecast period.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Reliance on Holdco debt to fund the buyout of investors in
CEPFs;
- Holdco FFO leverage exceeding 5.0x on a sustainable basis;
- Material underperformance in underlying assets lending
variability or shortfall to expected cash flow for debt service;
- Growth strategy underpinned by aggressive acquisitions, addition
of assets in the portfolio that bear material volumetric, commodity
or interest rate risks.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The structural subordination of the holdco debt to the
nonrecourse project debt, tax equity and CEPFs, and management's
4.0x-5.0x target holdco leverage caps the rating at 'BB+'.
Liquidity and Debt Structure
Adequate Liquidity: XPLR has a $2,500 million revolving credit
facility that matures in February 2029. The credit facility
provides for up to $400 million of LOC borrowing capacity. XPLR has
an accordion in its revolving facility up to a total commitment
size of $2,000 million. The facility provides flexibility for XPLR
to finance acquisitions partly through revolver borrowings. XPLR
had $175 million outstanding debt under its revolving credit
facility as of Sept 30, 2024.
The holdco debt at XPLR is subordinate to project debt, tax equity
and CEPF structures. As of Sept 30, 2024, there is about $2.1
billion of nonrecourse project finance debt at XPLR's owned
projects.
Issuer Profile
XPLR manages and owns a diversified portfolio of contracted clean
energy projects with stable long-term cash flows.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
XPLR Infrastructure
Operating Partners, LP LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed RR4 BB+
XPLR Infrastructure, LP LT IDR BB+ Affirmed BB+
ZACHRY HOLDINGS: Parent Company to Contribute $50M; Amends Plan
---------------------------------------------------------------
Zachry Holdings, Inc., and its affiliates submitted a Disclosure
Statement for the Modified First Amended Joint Plan of
Reorganization dated January 23, 2025.
The general framework for the Plan is as follows:
* The Prepetition Credit Facility will be amended and restated
and deemed binding on the Debtors and Holders of Prepetition Credit
Facility Claims as of the Plan's Effective Date. The Debtors have
had productive discussions with the steering committee representing
the Holders of Prepetition Credit Facility Claims and anticipate
reaching agreement on the terms of the amended and restated
facility during the solicitation of the Plan. The Debtors will
disclose the material terms of the facility, as agreed among the
parties, in the A&R Credit Facility Term Sheet, which will be
included in the Plan Supplement prior to the deadline to vote on
the Plan.
* Allowed General Unsecured Claims of $25,000 or less will be
treated as Convenience Claims. Convenience Claims are unimpaired
and will receive a cash distribution of the full Allowed amount of
such Claims, up to $25,000. Holders of General Unsecured Claims in
excess of $25,000 may elect on their ballot to reduce their General
Unsecured Claims to $25,000 and receive the Convenience Claim
treatment.
* General Unsecured Claims that are not Convenience Claims
will receive beneficial interests in a liquidating GUC Trust. On
the Effective Date, the Debtors will issue the GUC Trust Unsecured
Note to the GUC Trust. The face amount of the GUC Trust Unsecured
Note will equal the value of Allowed General Unsecured Claims in
the aggregate, and its terms will provide for the present value of
Allowed General Unsecured Claims. The cash proceeds of the GUC
Trust Unsecured Note shall be distributed pro rata to Holders of
Allowed General Unsecured Claims. The material terms of the GUC
Trust Unsecured Note will be set forth in the GUC Trust Unsecured
Note Term Sheet. The GUC Trust Unsecured Note Term Sheet is under
negotiation by the Debtors and the Committee as of the date
hereof.
* The immediate parent company of ZHI will make a capital
contribution, totaling $50 million, to ZHI on or prior to the
Effective Date. Of the $50 million, $20 million will be in the form
of forgiveness of intercompany liabilities and $30 million will be
a cash contribution from the immediate parent company. The
non-Debtor Affiliates of the Debtors have sufficient liquidity to
fund the Parent Capital Contribution in the amount currently
proposed by the Debtors. The Debtors will establish at the Combined
Hearing that the Plan is feasible, including on account of the
Parent Capital Contribution.
* Interests in ZHI will be reinstated and the legal,
equitable, and contractual rights associated with such interests
shall remain unaltered.
Further, the Debtors have worked diligently to minimize the impact
of these Chapter 11 Cases on their trade creditors, including by
arranging for payment of trade claims through various Court
approved processes and by non-Debtor joint venture parties. As the
following chart shows, hundreds of millions of dollars of trade
claims have been satisfied through the GPX Settlement, the Debtors'
OPPD Project settlement, the Debtors' designation of certain trade
partners as critical vendors, and other payments by the Debtors'
joint venture partners, including KZJV for amounts owed on the PLNG
Project.
Of the $ 132.50 million of outstanding trade debt, only
approximately $57.40 million of such claims are projected to be
treated as General Unsecured Claims under the Plan
For the subset of trade claims that have not been paid during the
Chapter 11 Cases and that will be treated as General Unsecured
Claims, such Claims will still recover in full under the Plan. As a
result, distributions to all stakeholders, including Holders of
Allowed General Unsecured Claims and Allowed Prepetition Credit
Facility Claims, will be significantly greater under the Plan than
in a chapter 7 liquidation. The Plan will also provide the
Reorganized Debtors with sufficient liquidity to continue providing
first-class services to their customers, while also ensuring the
Company's long-term viability.
The Committee reserves the right to seek to adjourn its objection
deadline and the Combined Hearing in the event that the Debtors
file material modifications to the GUC Trust Unsecured Note Term
Sheet, the GUC Trust Agreement, or the A&R Credit Facility Term
Sheet after February 5, 2025.
The Voting Deadline is February 20, 2025, at 4:00 p.m. The Combined
Hearing Date is February 26, 2025 at 1:30 p.m.
A full-text copy of the Disclosure Statement dated January 23, 2025
is available at https://urlcurt.com/u?l=NJigwn from
PacerMonitor.com at no charge.
Counsel to the Debtors:
Charles R. Koster, Esq.
WHITE & CASE LLP
609 Main Street, Suite 2900
Houston, Texas 77002
Tel: (713) 496-9700
Fax: (713) 496-9701
E-mail: charles.koster@whitecase.com
- and -
Bojan Guzina, Esq.
Andrew F. O'Neill, Esq.
RJ Szuba, Esq.
Barrett Lingle, Esq.
111 South Wacker Drive, Suite 5100
Chicago, Illinois 60606
Tel: (312) 881-5400
E-mail: bojan.guzina@whitecase.com
aoneill@whitecase.com
rj.szuba@whitecase.com
barrett.lingle@whitecase.com
About Zachry Holdings
Zachry Holdings, Inc., is the engineering, construction,
maintenance, turnaround and fabrication services offshoot of the
storied family-owned business that began as H.B. Zachry Company one
hundred years ago. The other offshoot, Zachry Construction, has
operated separately from Zachry Industrial since the two businesses
branched off from their common roots in 2008. The Zachry Group
provides engineering and construction services to clients in the
energy, chemicals, power, manufacturing, and industrial sectors
across North America.
None of the entities affiliated with Zachry Construction are
Debtors in the chapter 11 cases.
Zachry Holdings and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 24-90377) on May 21, 2024, with $1 billion to $10 billion in
assets and liabilities.
James R. Old, general counsel, signed the petitions.
Judge Marvin Isgur presides over the case.
The Debtors tapped White & Case LLP as general bankruptcy counsel;
Susman Godfrey L.L.P. and Hicks Thomas, LLP as special litigation
counsel; and Kurtzman Carson Consultants as notice & claims agent.
[] John Sobolewski Joins Latham & Watkins' New York Office
----------------------------------------------------------
Latham & Watkins LLP announced that John Sobolewski has joined the
firm's New York office as Global Chair of Liability Management and
a partner in the capital markets and finance practices. Sobolewski
has extensive experience representing sponsors and corporates in
their most complex financing and liability management transactions.
His arrival further enhances Latham's market-leading, fully
integrated finance and capital markets practices.
"John is a leading authority in complex financing transactions and
liability management, and we are delighted to welcome him to the
firm," said Rich Trobman, Chair and Managing Partner of Latham &
Watkins. "John's arrival, following the recent addition of Ray
Schrock, Andrew Parlen, Candace Arthur, and Alexander Welch to our
restructuring and special situations team, is a powerful testament
to our commitment to being the absolute best advisor to our clients
throughout their lifecycle, including through their toughest
challenges. John will bring tremendous knowledge, experience, and
leadership to his role as Global Chair of Liability Management, as
we remain focused on delivering unparalleled value to our
clients."
"John has earned a stellar reputation for leading many of the
market's largest and most complex liability management exercises,"
said Marc Jaffe, Managing Partner of Latham & Watkins' New York
Office. "His deep knowledge and experience will be a tremendous
asset to our clients in New York and globally, at a time when
demand for our services is growing rapidly in both scale and
sophistication."
Mr. Sobolewski's practice spans the full spectrum of leveraged
finance, including: liability management and special situations,
leveraged M&A and LBOs, complex hybrid capital, debt capital
markets offerings and exchanges, syndicated and direct loans, NAV
loans and capital call facilities, management company financings,
and out-of-court workouts. He has advised clients across
industries, including technology, communications, media and
entertainment, REITS and real estate, healthcare, pharmaceuticals,
retail, education, transportation and logistics, and energy.
"John's arrival underscores Latham's unwavering commitment to being
the premier firm serving clients across all of their sophisticated
financing needs," said Ian Schuman, Global Chair of Latham's
Capital Markets and Public Company Representation Practices. "His
commercial approach and the scope of his experience are synergistic
with the growth strategies of many of our premier practices,
including capital markets, hybrid capital, private capital,
restructuring, banking, and structured finance."
Mr. Sobolewski is the latest highly regarded partner to join Latham
in New York. At the end of last year, renowned practitioners: Ray
Schrock, Global Chair of Latham's Restructuring & Special
Situations Practice; Andrew Parlen, Head of US Restructuring &
Special Situations; Candace Arthur; and Alexander Welch joined the
Restructuring & Special Situations Practice, while Jim Fogarty
joined the Structured Finance Practice.
Ray Schrock, Global Chair of Latham's Restructuring & Special
Situations Practice, said: "No firm can match our ability to deploy
expertise and resources across interconnected corporate and finance
practices to help clients stay ahead of financial distress and
achieve their strategic objectives. John is sought after for his
critical liability management advice, and his arrival further
rounds out Latham's comprehensive and unrivaled platform."
"John's clear leadership in liability management, an area at the
intersection of our dominant finance, capital markets, and private
capital practices, further solidifies our position as the market's
go-to strategic advisor," said Stelios Saffos, Global Vice Chair of
Latham's Capital Markets and Public Company Representation
Practices and Global Chair of the Hybrid Capital Practice. "We are
laser focused on providing unmatched insight and service to our
clients through our scaled platform, with market-leading practices
across virtually every jurisdiction and discipline."
"Latham is the premier full-service finance firm," said Mr.
Sobolewski. "I am thrilled to join the team and offer clients the
highest level of liability management and complex financing
advice."
Mr. Sobolewski joins Latham from Wachtell. He received his JD from
Harvard Law School and BA from Boston College.
About Latham & Watkins
Latham & Watkins -- http://www.lw.com-- delivers innovative
solutions to complex legal and business challenges around the
world. From a global platform, its lawyers advise clients on
market-shaping transactions, high-stakes litigation and trials, and
sophisticated regulatory matters. Latham is one of the world's
largest providers of pro bono services, steadfastly supports
initiatives designed to advance diversity within the firm and the
legal profession, and is committed to exploring and promoting
environmental sustainability.
Latham & Watkins operates worldwide as a limited liability
partnership organized under the laws of the State of Delaware (USA)
with affiliated limited liability partnerships conducting the
practice in France, Hong Kong, Italy, Singapore, and the United
Kingdom and as an affiliated partnership conducting the practice in
Japan. Latham & Watkins operates in Israel through a limited
liability company, in South Korea as a Foreign Legal Consultant
Office, and in Saudi Arabia through a limited liability company.
[] Nardello & Co. Expects Bankruptcy Filings to Rise in 2025
------------------------------------------------------------
Global investigations firm Nardello & Co. released its 2025 outlook
report on the state of corporate bankruptcies. The report
forecasts a rise in bankruptcy filings in 2025 and offers
predictions and guidance for organizations and their leaders.
Nardello & Co. investigated the FTX bankruptcy, tracing and
recovering billions of dollars in assets for victims of the fraud,
traced assets in the Alex Jones bankruptcy, and was recently
appointed to investigate and trace assets owned by the Sackler
family outside of the United States in connection with the Purdue
bankruptcy.
Partner Howard Master and managing director Liam Hanlon discussed
the key trends and how CEOs and companies should respond.
Key trends & predictions:
Notwithstanding the strength of the US economy, the world continues
to experience economic uncertainty accompanied by high interest
rates and inflation. The Trump administration's promise of tariffs
and a more confrontational approach to world trade may result in
increased business failures as companies adjust to the new
environment.
The new administration's deregulatory approach may also lead to an
increase in private litigation and insolvency proceedings to
address matters previously addressed through government oversight
or enforcement actions.
Some crypto and fintech businesses will be exposed as fraudulent.
Many of these firms are headquartered or have significant
operations in high privacy jurisdictions or territories in which
officials have a limited ability to detect and prevent fraud.
Furthermore, the industry seems to attract individuals with
limited records of success or questionable backgrounds. There is
thus a strong likelihood that some of companies will prove to be
less than what they represent themselves to be or unprofitable,
resulting in insolvency claims and disputes.
The fall and aftermath of FTX shows that bankruptcy investigations
can benefit from the inclusion of professionals with specialized
skills in asset tracing; investigations of financial crimes such as
fraud, corruption, and money laundering; digital investigations;
cryptocurrency analysis; and investigations in a variety of
jurisdictions.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
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Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
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Don't be fooled. Assets, for example, reported at historical cost
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assets. A company may establish reserves on its balance sheet for
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equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
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Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
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