/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/250206.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, February 6, 2025, Vol. 29, No. 36 Headlines 3265 E. VALLEY: Affiliate Has Deal on Cash Collateral Access 729-731 MEEKER: Seeks To Sell Brooklyn Property at Online Auction ADVANCED URGENT: Has Deal on Cash Collateral Access ADVENTURE COAST: Gary Murphey Named Subchapter V Trustee ALABAMA RENTALS: Gets Final OK to Use Cash Collateral ALAMO BEER: Seeks Chapter 11 Bankruptcy Protection in Texas ALBERTSONS COMPANIES: Moody's Alters Outlook on Ba1 CFR to Stable ALLSTATE REALTY: Seeks Cash Collateral Access AMERICAN TIRE: Seeks to Extend Plan Exclusivity to May 20 ANGIE'S TRANSPORTATION: Gets OK to Use Webster's Cash Collateral ATLAS CC: S&P Downgrades ICR to 'CCC+' on Onerous Debt Burden BALANCE LIFE: Voluntary Chapter 11 Case Summary BAMBY EXPRESS: Court Extends Cash Collateral Access to Feb. 28 BARSCOTT LLC: Case Summary & One Unsecured Creditor BLINK FITNESS: Judge Denies Chapter 11 Plan Exculpations BROCATO'S SANDWICH: Court OKs Continued Access to Cash Collateral BUILDERS FIRSTSOURCE: Moody's Affirms 'Ba1' CFR, Outlook Stable BURGERFI INT'L: Updates TREW Claims Pay Details; Files Amended Plan CAI RENO: Credit Facility to Contribute to Plan Funding CDK GLOBAL II: Moody's Downgrades CFR & Senior Secured Notes to B3 CENTRAL HOUSEWARES: Seeks to Use Cash Collateral CONTAINER STORE: U.S. Trustee Requests Bankruptcy Plan Appeal Stay COVIA HOLDINGS: Moody's Hikes CFR to 'B1', Outlook Stable CRUSADE BURGER: Court Extends Cash Collateral Access to March 28 DECORATIVE PLUMBING: Gets Interim OK to Use Cash Collateral DENT TECH: Unsecured Creditors Will Get 79.70% of Claims in Plan DIOCESE OF BURLINGTON: Plan Exclusivity Period Extended to July 28 DISTRICT 5 BOUTIQUE: Gets Final OK to Use $286K in Cash Collateral DP AUTO SALES: Unsecureds Will Get 13.1% Dividend over 5 Years DRIP MORE: Court Extends Cash Collateral Use to Feb. 19 EASTERN MAINE HEALTHCARE: S&P Lowers Taxable Bonds Rating to 'BB-' EDGEWATER GENERATION: Moody's Affirms B3 Rating on Sec. Bank Loans ERC MANUFACTURING: Case Summary & 20 Largest Unsecured Creditors EXPRESS MOBILE: Seeks Subchapter V Bankruptcy in Pennsylvania EYM PIZZA: Sells 77 Pizza Hut Locations FIRST COAST: Unsecureds Will Get 10% of Claims over 60 Months FOUR SEAS: Gets Final OK to Access Cash Collateral FREEDOM MORTGAGE: S&P Rates $500MM Senior Unsecured Notes 'B' FREEPORT LNG: Moody's Affirms 'B3' CFR & Alters Outlook to Positive G FAB: Gets Final OK to Use $1.28-Mil. in Cash Collateral GIRARDI & KEESE: Trustee Sues DiNardo, Law Firm for Fee Fraud GRISWOLD ENTERPRISES: Case Summary & 10 Unsecured Creditors HALO ESTATES: Seeks Cash Collateral Access Until April 30 HONDUCRETE REDI: Seeks Chapter 11 Bankruptcy Protection in Texas HOUZE AMERICA: Sec. 341(a) Meeting of Creditors on March 3 JACKSON HOSPITAL: Case Summary & 30 Largest Unsecured Creditors JACOBS ENTERTAINMENT: S&P Lowers ICR to 'B-', Outlook Stable JEA2 LLC: Seeks to Use Cash Collateral JORDAN HEALTH: Seeks to Extend Plan Exclusivity to June 4 KOZUBA & SONS: Court to Hold Cash Collateral Hearing Today KYLE CHAPMAN: Unsecured Creditors Will Get 95% of Claims in Plan LIBERATED BRANDS: Secures Court Okay to Tap $25MM Ch. 11 Financing LILLY INDUSTRIES: Case Summary & 10 Unsecured Creditors LITTLE MINT: Ward and Smith, 2 Others Appointed to Creditors' Panel LOS TRECE TEXAS: Continued Operations to Fund Plan Payments LOUISIANA APPLE: Seeks to Extend Plan Exclusivity to March 3 LUMIO HOLDINGS: Gets Ch. 11 Liquidation Approval after Asset Sale LUTHERAN HOME: Case Summary & 20 Largest Unsecured Creditors MACON ARTS: Case Summary & Nine Unsecured Creditors MASTER FLOW: Selling Natchitoches Property to J. Bernard Realty MASTER FLOW: To Sell 173 Sorgee Road Property to Detris Crane MID-ATLANTIC RHEUMATOLOGY: Seeks Chapter 11 Bankruptcy in Maryland MJD ENGINEERING: Case Summary & Eight Unsecured Creditors MJM LANDSCAPE: Seeks Cash Collateral Access MMV F&B: Seeks Chapter 11 Bankruptcy in Texas MORVATT ENTERPRISES: Matt Golden Appointed as Chapter 11 Trustee MPH ACQUISITION: Moody's Alters Outlook on 'Caa1' CFR to Stable MYNARIC AG: Plans to File Chapter 11 Bankruptcy N&H SADDLEBRED: Court OKs Woodschurch Property Sale for $415,000 NATIONAL BANK OF CANADA: S&P Rates Preferred Share Issuances 'BB+' NESCO HOLDING: Moody's Affirms 'B2' CFR, Outlook Remains Stable NEW YORK'S PREMIER: Gets Extension to Access Cash Collateral NOMADE VILLA: Voluntary Chapter 11 Case Summary OCEANKEY (US) II: Moody's Rates New Incremental First Lien Loan B2 ORANGE TUMBLER: Seeks to Use Cash Collateral Until March 14 OUTBRAIN INC: S&P Assigns 'B+' ICR, Outlook Stable P2 OAKLAND: Seeks to Use Cash Collateral PENN HILLS SD: Moody's Upgrades Issuer & GOLT Ratings to Ba1 PENNYMAC FINANCIAL: S&P Rates New $650MM Sr. Unsecured Notes 'B+' PETROQUEST ENERGY: Gets Court Approval for $20.6MM Oilfield Sale PHOENIX EXTEND-A-SUITES: Files Emergency Bid to Use Cash Collateral PHOENIX GUARANTOR: Moody's Affirms B1 CFR, Outlook Remains Stable PHYSICIAN PARTNERS: Moody's Cuts CFR to 'Ca', Outlook Stable PPGE ALAMO: To Sell Quality Inn Hotel to Patel Capital for $3.6MM PRAIRIE ACQUIROR: Moody's Affirms 'B1' CFR, Outlook Negative PREMIER DATACOM: Files Emergency Bid to Use Cash Collateral RADIOLOGY PARTNERS: Moody's Alters Outlook on Caa1 CFR to Positive REDLINE METALS: Court OKs Limited Use of Cash Collateral REVITALIZE PORTLAND: Claims to be Paid from Property Sale/Refinance RIGHT SIZE: Gets Final OK to Use Cash Collateral RIVERBED HOLDINGS: Moody's Assigns 'Caa1' CFR, Outlook Stable RUSH INC: Seeks Subchapter V Bankruptcy in Illinois SAVAGE ENTERPRISES: Moody's Affirms 'B1' CFR, Outlook Stable SBF VENTURES: Seeks Chapter 11 Bankruptcy in Massachusetts SEASONAL LANDSCAPE: Court Extends Cash Collateral Access to Feb. 28 SOUTHERN AUTO: Gets Interim OK to Use Cash Collateral Until Feb. 10 STEWARD HEALTH: Latham Defends Bankruptcy Efforts Amid TRACO Issues TEAK DECK: Gets Interim OK to Use Cash Collateral Until Feb. 20 TECIAS CHILDCARE: Sec. 341(a) Meeting of Creditors on March 5 TEMPLETON REAGAN: Sec. 341(a) Meeting of Creditors on February 28 TERRAFORM LABS: Trustee Opposes White & Case Payment in Chapter 11 TOHI LLC: Files Amendment to Disclosure Statement TRUENOORD LIMITED: S&P Assigns 'B+' ICR, Outlook Stable UNIMODE WOODWORKING: Gets OK to Use Cash Collateral Until Feb. 28 UNIVERSAL BIOCARBON: Files Chapter 11 Bankruptcy in Florida UNLIMITED ENTERPRISES: Case Summary & Five Unsecured Creditors VIPER ENERGY: Moody's Puts 'Ba2' CFR on Review for Upgrade VISION PAINTING: Gets OK to Use Cash Collateral Until March 7 W.R. GRACE: Moody's Lowers CFR to 'B3', Outlook Stable WH INTERMEDIATE: S&P Rates Subs New First-Lien Term Loan 'B' WILDCAT LENDER: Case Summary & One Unsecured Creditor WINDSOR HOLDINGS III: Fitch Affirms B+ LongTerm IDR, Outlook Stable ZARIFIAN ENTERPRISES: Seeks to Sell Carpentry Equipment at Auction ZMETRA LAND: Case Summary & 15 Unsecured Creditors [] January 2025 Chapter 11 Commercial Filings Rise 16% YOY [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 3265 E. VALLEY: Affiliate Has Deal on Cash Collateral Access ------------------------------------------------------------ Linear Companies, LLC, an affiliate of 3265 E. Valley Vista, LLC, and the U.S. Small Business Administration advised the U.S. Bankruptcy Court for the District of Arizona that they have reached an agreement regarding the company's cash collateral and now desire to memorialize the terms of this agreement into an agreed order. On May 17, 2020, Linear entered into a Loan Authorization and Agreement with SBA for a loan in the original principal amount of $150,000, as evidenced by, among other things, the Note dated May 17, 2020, executed by the company in connection with the Loan. Lender's security interest in the company's personal property is perfected by a UCC Financing Statement filed on June 1, 2020, at Document No. 2020-003-1141-8 with the Arizona Secretary of State. SBA consents and stipulates to the company's use of cash collateral pursuant to the terms of the Cash Collateral Order, to pay ordinary and necessary operating expenses through and including February 13, 2025, pursuant to the budget. As additional adequate protection of SBA's interests for Linear Companies LLC's use of cash collateral, the company will remit adequate protection payments to the SBA in the amount of $214 per month, starting January 2025, with the payment to be paid on or before the 15th of each month. A copy of the motion is available at https://urlcurt.com/u?l=smhUYQ from PacerMonitor.com. About 3265 E. Valley Vista LLC 3265 E. Valley Vista, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz.) Case No. 2:24-bk-10529-BKM) on December 9, 2024. In the petition signed by Sean Parsons, member, the Debtor disclosed up to $10 million in both assets and liabilities. Randy Nussbaum, Esq., at Sacks Tierney P.A., represents the Debtor as legal counsel. 729-731 MEEKER: Seeks To Sell Brooklyn Property at Online Auction ----------------------------------------------------------------- 729-731 Meeker Group LLC seeks permission from the U.S. Bankruptcy Court for the Eastern District of New York, at a hearing on March 5, at 10:30 a.m., to sell its real property known as and located at 729-731 Meeker Avenue, Brooklyn, New York 11222, free and clear of all liens, claims and encumbrances. The Debtor's real property is a mixed-use building located in the Greenpoint section of Brooklyn, New York. The Property was built in 1928 and has 4 stories and 8 units. Wells Fargo Bank, National Association, as Trustee for the benefit of the holders of CF 2019-CF3 Mortgage Trust Commercial Mortgage Pass-Through Certificates, Series 2019-CF3, is the holder of a first mortgage against the Property. The proposed Bidding Procedures provide an initial overbid in the amount of $2,500,000 and the successful purchaser must close title to the Property on a date that is no later than 75 calendar days after the entry of a final and non-appealable order. The successful buyer will be the party or parties who tender the highest or best bid, which presents the best opportunity to maximize the value of the Property for the benefit of the Debtor's estate and its creditors. Any party that is interested in bidding on the Property must provide the Debtor's attorney with a minimum deposit of 10% of the price offered. The Auction shall be conducted telephonically or by videoconference on May 15, 2025 at 2:30 pm. The Debtor seeks to sell the Property, "As Is" "Where Is" without any representations or warranties of any kind. About 729-731 Meeker Group LLC 729-731 Meeker Group LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). 729-731 Meeker Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-42846) on July 9, 2024. In the petition filed by Mitchell Steiman, as vice president of restructuring, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Honorable Bankruptcy Judge Jil Mazer-Marino handles the case. The Debtor is represented by Joel M. Shafferman, Esq., at SHAFFFERMAN & FELDMAN LLP. ADVANCED URGENT: Has Deal on Cash Collateral Access --------------------------------------------------- Advanced Urgent Care, LLC and Independent Bank entered into a stipulation to extend the company's authority to use cash collateral. The stipulation authorizes the company to use the bank's cash collateral until March 31 to fund its business operations. The terms of the cash collateral order issued on Sept. 12 last year will remain in full force and effect through March 31 in accordance with the updated budget, according to the stipulation. The stipulation is subject to approval by the U S. Bankruptcy Court for the District of Colorado. A copy of the stipulation is available at https://urlcurt.com/u?l=VKkFdt from PacerMonitor.com. About Advanced Urgent Care Advanced Urgent Care, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 24-14536) on August 7, 2024. In the petition signed by Anthony G. Euser, managing member, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. David J. Warner, Esq., at Wadsworth Garber Warner Conrardy, P.C., represents the Debtor as legal counsel. Independent Bank, as lender, is represented by: John F. Young, Esq. Mark us Williams Young & Hunskker LLC 1775 Sherman Street, Suite 1950 Denver, CO 80203 Phone: 303-830-0800 Fax: 303-830-0809 Email: jyoungffiMarkusWilliaros.com ADVENTURE COAST: Gary Murphey Named Subchapter V Trustee -------------------------------------------------------- The U.S. Trustee for Region 21 appointed Gary Murphey of Resurgence Financial Services, LLC as Subchapter V trustee for Adventure Coast, LLC. Mr. Murphey will be paid an hourly fee of $400 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Murphey declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Gary Murphey Resurgence Financial Services, LLC 3330 Cumberland Blvd., Suite 500 Atlanta, GA 30330 Tel: (770) 933-6855 Email: Murphey@RFSLimited.com About 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. ALABAMA RENTALS: Gets Final OK to Use Cash Collateral ----------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Alabama, Southern Division granted Alabama Rentals, Inc. authorization to use cash collateral on a final basis. The final order authorized the company to use cash collateral, including cash, deposit accounts, accounts receivable, and proceeds thereof, to pay its expenses in the normal course of business. The company is not allowed to use cash collateral to pay pre-bankruptcy claims of general unsecured creditors without court approval. Alabama Rentals was ordered to provide adequate protection to its secured creditors in the form of a replacement lien to the extent the value of their liens is decreased by the company's use of cash collateral. The company was also ordered to escrow $1,000 per month for Subchapter V trustee's fees and expenses, which are exempt from the replacement lien. The Assistant Bankruptcy Administrator, Subchapter V trustee, and counsel for Millennial Bank consent to the terms of the final order. About Alabama Rentals Inc. Alabama Rentals, Inc. is into the business of renting commercial and industrial machinery and equipment. The company is based in Birmingham, Ala. Alabama Rentals filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-03559) on November 22, 2024, with $1 million to $10 million in both assets and liabilities. Brian Walding of Walding, LLC serves as Subchapter V trustee. Judge D. Sims Crawford oversees the case. The Debtor is represented by: Anthony B Bush, Esq. The Bush Law Firm, LLC Tel: 334-263-7733 Email: abush@bushlegalfirm.com ALAMO BEER: Seeks Chapter 11 Bankruptcy Protection in Texas ----------------------------------------------------------- Earl Stoudemire of Kens5 reports that Alamo Beer Company, one of San Antonio's largest breweries, has filed for Chapter 11 bankruptcy protection. The company, based on the Eastside, filed the petition on Monday, February 3, 2025, in the Western District of Texas. This filing is part of a broader trend of beer businesses in the area closing or downsizing, with local breweries such as Weathered Souls, Busted Sandal, and Second Pitch shutting down last year due to rising operational costs and declining sales, the report notes. According to Kens5, Alamo's difficulties began last fall when the company revealed to the Express News that, although its brewery has the capacity to produce 40,000 barrels a year, it was only producing 7,600—less than 20% of its potential. In an attempt to raise funds, the company listed its two-acre parking lot at 202 Lamar Street for $1.5 million last summer. Reports indicate that the bankruptcy filing estimates the company's value at up to $10 million, with outstanding debts of a similar magnitude, the report states. To help stabilize, Alamo Beer has partnered with Viva Beer, another San Antonio craft brewery, and acquired Shotgun Seltzer, based in Austin. The company has also secured contracts to package other beverages, according to report. Eugene Simor, who has owned Alamo Beer for nearly 30 years, is facing this challenge just weeks before the brewery's 10th anniversary in the Dignowity Hill neighborhood. The Chapter 11 filing will allow the company to restructure its operations and address its financial obligations in an effort to return to stability. Simor told the San Antonio Business Journal that the company plans to recapitalize, reorganize, and emerge stronger, the report relays. About Alamo Beer Company Alamo Beer Company LLC 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. Alamo Beer Company LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-50245) on February 3, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Craig A. Gargotta handles the case. The Debtor is represented by: William B. Kingman, Esq. LAW OFFICES OF WILLIAM B. KINGMAN 3511 Broadway San Antonio, TX 78209 Tel: (210) 829-1199 Email: bkingman@kingmanlaw.com ALBERTSONS COMPANIES: Moody's Alters Outlook on Ba1 CFR to Stable ----------------------------------------------------------------- Moody's Ratings has affirmed Albertsons Companies, Inc.'s ratings; including the corporate family rating at Ba1, its probability of default rating at Ba1-PD and the ratings on its senior unsecured notes at Ba2. Moody's also affirmed the Ba2 ratings for Safeway Inc.'s ("Safeway") legacy senior unsecured notes assumed by Albertson's Holdings LLC. Albertsons speculative grade liquidity rating ("SGL") remains unchanged at SGL-1. The rating outlook for both issuers changed to stable from positive. The change in outlook to stable reflects that Albertson's will maintain consistent credit metrics, prudent financial strategies and very good liquidity following the termination of the merger agreement between Kroger Co. and Albertsons. RATINGS RATIONALE The affirmation of the ratings reflects the effect of Albertsons debt reduction efforts and resilient operating performance, despite a challenging consumer spending environment, that has resulted in improved credit metrics. The affirmation also reflects the company's meaningfully reduced private equity ownership, differentiated merchandising, increase in its high margin owned brand portfolio, high number of digital customers, and ongoing productivity improvements. Albertsons' Ba1 CFR reflects its sizable scale as the second largest traditional supermarket in the US, leading market position, well established owned brand portfolio and significant store ownership. Albertsons large base of stores that are owned rather than leased represent a credit positive, as it reduces the company's fixed cost burden relative to companies with leased real estate and provides a source of value to creditors. The rating also reflects Alberson's debt reduction and resilient operating performance despite a difficult consumer spending environment. The company's sales continue to grow reflecting low to mid-single digit same store sales. In addition, Albertsons digital sales have grown an average of 25% since fiscal 2022 as consumers increasingly got comfortable ordering online. Since fiscal 2018 Albertsons has reduced funded debt by nearly 25%. As a result, debt to EBITDA is about 3.0x for the LTM ended11/30/2024 since 2020 from a high of 4.8x in 2018 with EBITA to interest at about 2.7x from 1.3x for the same period. Moody's expect debt to EBITDA and EBITA to interest to remain relatively stable over the next 12 months. The ratings are constrained by Moody's view that the supermarket segment is a mature sector that faces intense price competition between traditional players and alternative food retailers, such as Walmart Inc., Target Corporation and Costco Wholesale Corporation. While Albertsons is not insulated from challenged consumer spending and fierce competition, Moody's believe that the company will remain a very effective competitor. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of the ratings would require an articulated financial policy, capital structure, and liquidity that supports an investment grade rating, as well as increased independent Board membership. Quantitatively ratings could be upgraded if same store sales growth remains consistently positive, liquidity is very good, debt/EBITDA is sustained below 2.5x and EBITA/interest is sustained above 4.25x. Ratings could be downgraded if Albertsons identical store sales performance or operating margin trends turn negative or trail peers, liquidity deteriorates, or financial policies become more aggressive. Quantitatively ratings could be downgraded if debt/EBITDA is sustained above 3.75x or EBITA/interest is sustained below 3.5x. The principal methodology used in these ratings was Retail and Apparel published in November 2023. Headquartered in Boise, Idaho Albertsons Companies, Inc. is the second largest traditional supermarket in the US As of November 30, 2024, Albertsons operated 2,273 retail stores with 1,732 pharmacies, 405 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities across 34 states and the District of Columbia with more than 20 well known banners including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets and Balducci's Food Lovers Market. Cerberus Capital Management owns 26% of Albertsons' common equity. Annual revenue is about $80 billion. ALLSTATE REALTY: Seeks Cash Collateral Access --------------------------------------------- Allstate Realty Group, Inc. asked the U.S. Bankruptcy Court for the Central District of California, San Fernando Valley Division, for authority to use cash collateral and provide adequate protection. Select Portfolio Servicing and Smuel Cohen assert an interest in the company's cash collateral. Allstate requires the use of cash collateral to pay the reasonable expenses it incurs during the ordinary course of its business. The company fell behind on its mortgage obligations since the Pandemic because the prior tenants stopped paying rent to the company. The company evicted them in May 2023 and has new tenants. The 1st Lien holder is SPS with an approximate balance of $3.310 million as of the petition date per Notice of Trustee Sale dated July 29, 2024, by the lender. Smuel Cohen is the 2nd lien holder with an estimated balance of $2.7 million as of the date of filing the case. The estimated value of the subject property is $2 million based on comparable sales and the company's knowledge or area. Allstate proposed to start making adequate protection payments to SPS, effective November 1, 2024 and continue on monthly basis as summarized in the cash collateral budget until the company's Chapter 11 plan is confirmed or plan treatment stipulation is entered into among the company, and SPS. A hearing on the matter is set for March 4. About Allstate Realty Group Inc. Allstate Realty Group, Inc. sells retail deck products and installs teak decking. Allstate sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 1:24-bk-11555) on September 17, 2024, with up to $10 million in both assets and liabilities. Joseph Kashki, chief executive officer of Allstate, signed the petition. Judge Martin R. Barash oversees the case. Onyinye N. Anyama, Esq., at Anyama Law Firm, APC, represents the Debtor as bankruptcy counsel. AMERICAN TIRE: Seeks to Extend Plan Exclusivity to May 20 --------------------------------------------------------- American Tire Distributors, 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 May 30 and July 21, 2025, respectively. The Debtors claim that these chapter 11 cases involve thirteen jointly-administered Debtor entities, which had, at the outset of these cases, approximately 4,500 employees. The Debtors continue to operate their business and serve over 80,000 customers throughout North America. The Debtors also have a wide variety of parties in interest, from various vendors and contractual and litigation counterparties to local, state, and federal agencies, many of whom have been active in these chapter 11 cases. Further, the Debtors will provide transition services to the purchaser under the Stalking Horse Asset Purchase Agreement to effectuate a smooth transition for all stakeholders and to maximize the value of these estates. This will be an involved process, requiring the Debtors, their personnel, and their professionals to negotiate with numerous stakeholders as well as the purchaser to ensure uninterrupted service. Accordingly, the size and complexity of these chapter 11 cases weigh in favor of extending the Exclusivity Periods. The Debtors explain that they have had extensive negotiations and shared information related to the marketing and sale process as well as the Debtors proposed Plan, which they expect to file in the near term since the Committee's formation. In the weeks ahead, the Debtors will seek conditional approval of the Disclosure Statement and will continue to engage with their stakeholders to further develop and negotiate the Plan. The Debtors' substantial progress administering these chapter 11 cases weighs in favor of an extension of the Exclusivity Periods. The Debtors assert that they have already taken significant steps toward exiting these chapter 11 cases by negotiating with their key stakeholders regarding the terms of a potential Plan to effectuate an orderly wind down process to allocate proceeds following the closing of the Sale Transaction, which is ultimately the best path forward for the Debtors' estates. Accordingly, an extension of the Exclusivity Periods will allow the Debtors adequate time to complete the negotiations on the Plan, file the Plan, solicit votes thereon, and move forward with obtaining Court approval. The Debtors further assert that they are not seeking an extension of the Exclusivity Periods to pressure or prejudice any of their stakeholders. The Debtors have been diligently moving these chapter 11 cases forward. Accordingly, the relief requested herein is without prejudice to the Debtors' creditors and will benefit the Debtors' estates, their creditors, and all other key parties in interest. Co-Counsel for the Debtors: Anup Sathy, P.C. Chad J. Husnick, P.C. David R. Gremling, Esq. KIRKLAND & ELLIS LLP AND KIRKLAND & ELLIS INTERNATIONAL LLP 333 West Wolf Point Plaza Chicago, Illinois 60654 Tel: (312) 862-2000 Fax: (312) 862-2200 Email: anup.sathy@kirkland.com chad.husnick@kirkland.com dave.gremling@kirkland.com Co-Counsel for the Debtors: Laura Davis Jones, Esq. Timothy P. Cairns, Esq. Edward A. Corma, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 North Market Street, 17th Floor Wilmington, Delaware 19801 Tel: (302) 652-4100 Fax: (302) 652-4400 Email: ljones@pszjlaw.com tcairns@pszjlaw.com ecorma@pszjlaw.com About American Tire Distributors Headquartered in Huntersville, N.C., American Tire Distributors Inc. and its affiliates are the largest distributor of replacement tires in North America based on dollar amount of wholesale sales. With their network of over 115 distribution centers and 1,500 delivery vehicles, the Debtors service a geographic region covering more than 90 percent of the replacement tire market for passenger vehicles and light trucks in the United States. The Debtors carry many of the nation's leading tire brands including Michelin, Pirelli, and Continental. In addition, the Debtors' proprietary Hercules brand is a leading private tire brand in North America. American Tire Distributors and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12391) on October 22, 2024. In its petition, American Tire Distributors reported $1 billion to $10 billion in both assets and liabilities. Judge Craig T. Goldblatt oversees the cases. The Debtors tapped Kirkland & Ellis as bankruptcy counsel; Pachulski Stang Ziehl & Jones, LLP as Delaware counsel; AP Services, LLC as restructuring advisor; and Moelis & Company, LLC as financial advisor. Donlin, Recano & Company, Inc. is the notice and claims agent and administrative advisor. ANGIE'S TRANSPORTATION: Gets OK to Use Webster'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 Webster Capital Finance until March 16. Webster is a secured creditor of STL, with valid liens on five trailers owned by the company. As protection for the use of its collateral, Webster 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, Webster will receive "adequate protection" payments, including an initial payment of $3,000 and monthly payments of $4,500 due on or before the 15th 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. ATLAS CC: S&P Downgrades ICR to 'CCC+' on Onerous Debt Burden ------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Atlas CC Holding LLC (Cubic Corp.) to 'CCC+' from 'B-'. At the same time, S&P lowered its issue-level rating on its senior secured credit facilities to 'B-' from 'B'. The recovery rating remains '2'. The negative outlook reflects that S&P could lower its ratings if Cubic does not demonstrate significant improvement to its credit measures over the next 12 months. Cubic Corp. has continued to underperform its expectations with persisting free operating cash flow (FOCF) deficits through 2024. S&P said, "We think Cubic's capital structure is unsustainable based on onerous levels of debt combined with consistent, substantial underperformance. After several years of consistent FOCF deficits exceeding $100 million, we expect improved FOCF in 2025 as contract assets are released with project milestone payments from some of its largest contracts. However, challenges related to supply chain issues, contract award delays, contract renegotiations, and restructuring costs have burdened the company's performance. Still, new contract wins have been slow and existing contracts, including the recently renegotiated Boston contract, and the descoped New York contract, have underperformed. Our updated forecast reflects lower revenue growth informed by these developments while we expect a significant step up in profitability in fiscal 2025 (ending Sept. 30, 2025). Still, we now believe leverage will be sustained well above 10x and consistent positive FOCF generation will be highly dependent on favorable economic and business conditions. In 2025, we forecast positive FOCF driven primarily by cash receipts at its consolidated variable interest entity (VIE) associated with its Massachusetts Bay Transportation Authority (MBTA) contract, which will be primarily directed to repay the VIE's debt. "We believe Cubic's debt obligations are overly burdensome and we no longer anticipate sufficient earnings growth to reduce leverage to manageable levels. Total S&P Global Ratings’ adjusted debt as of the end of fiscal 2024 was about $3 billion, including preferred equity, VIE debt (nonrecourse to Cubic), and trade receivables sold. We anticipate milestone payments made to the VIE will lower consolidated debt over the next couple of years. Still, the roughly $2.0 billion of first- and second-lien debt (As of Sept. 30, 2024) held directly by Cubic represent an onerous debt burden, in our view. Recent revenue headwinds were driven by some of its largest contracts shifting to the operations and maintenance phase and new contract wins will likely help to offset the top-line headwinds somewhat over the next couple of years. We also anticipate expanding profit margins driven by cost-saving initiatives and mix shift toward higher margin operations and maintenance (O&M) revenue, without the burden of last year's charges related to contract renegotiations. "We think Cubic's Transportation Systems segment (CTS) faces tough competition with other large-scale providers, which has limited its ability to meet our revenue growth expectations. For example, last year, the Metropolitan Transportation Authority (MTA) canceled a contract option with Cubic, opting to utilize its existing vendor for mobile railroad ticketing enhancements. Still, we believe Cubic maintains a competitive advantage relative to smaller peers based on its extensive experience working on large-scale and highly complex transportation projects. We think opportunities with upcoming transit projects could enable more rapid growth. For example, the company was recently awarded a $230 million contract in Philadelphia to update its electronic fare-collection system, replacing its competitor, Conduent. It was also awarded a new contract in Tasmania to provide a smart ticketing solution for its transport system. Meanwhile, the company's Mission and Performance Solutions segment continues to perform in line with our expectations. "Cubic's liquidity has contracted below our expectations, although we do not foresee a liquidity shortfall over the next 12 months. The company reported total liquidity of $220 million as of the end of fiscal year 2024 (ended Sept. 30, 2024). Through an extended period of cash flow deficits over the past few years, the company has used balance sheet cash, revolver availability, and its fiscal 2023 execution of a real-estate sale leaseback transaction to continue funding its operations. With liquidity sources tightening, underperformance relative to our forecast, perhaps related to delays in achieving contract milestones, could pressure Cubic's ability to meet financial obligations. Meanwhile, the company's debt term loans are currently priced at distressed levels, which present refinancing risk and limit its ability to source additional financing if needed. Furthermore, we think the company's ability to generate consistently positive FOCF is uncertain and dependent on favorable market conditions. Still, our base case assumes the company will address the looming May 2026 maturity of its revolving credit facility, supporting its liquidity position. "The negative outlook reflects that we believe Cubic's performance could deteriorate beyond our base case within the next 12 month, leading to an increased likelihood of a default or distressed exchange." S&P could lower its rating on Cubic if it envisions a specific default scenario occurring within 12 months. This could occur if: -- It is unable to extend its revolver's May 2026 maturity; -- Cost overruns or project delays cause us to anticipate incremental FOCF deficits with a possibility of a liquidity shortfall; -- The company engages in a liability management transaction or debt exchange that we view as distressed. S&P could take a positive rating action if: -- It successfully extends its revolver maturity, and we anticipate a successful refinancing of its capital structure at par; -- The company demonstrates consistent positive free operating cash flow; and -- S&P expect continued top-line growth and consistent EBTIDA margins that support its capital structure. BALANCE LIFE: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Balance Life Better Enhancement Corporation 9760 Woodward Ave Detroit, MI 48202 Chapter 11 Petition Date: February 4, 2025 Court: United States Bankruptcy Court Eastern District of Michigan Case No.: 25-41075 Debtor's Counsel: Orlando Avant, Esq. ORLANDO AVANT, P.C. 26100 American Drive Suite 607 Southfield MI 48034 E-mail: attyodavant@yahoo.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Raphael Williams Jr. as managing member. The Debtor failed to provide 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/N72HPNA/Balance_Life_Better_Enhancement__miebke-25-41075__0001.0.pdf?mcid=tGE4TAMA BAMBY EXPRESS: Court Extends Cash Collateral Access to Feb. 28 -------------------------------------------------------------- Bamby Express, Inc. received interim approval from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division to use cash collateral until Feb. 28, marking the sixth extension since the company's Chapter 11 filing. The sixth interim order authorized the company to use the cash collateral of the U.S. Small Business Administration and other lienholders to pay expenses in accordance with its budget, which covers the period from Feb. 1 to 28. The budget shows total monthly expenses of $14,719. In return for the use of their cash collateral, SBA and other lienholders will receive an administrative expense claim and replacement liens on substantially all of Bamby's assets. SBA has valid liens totaling $427,100 against the company's assets. The next hearing is scheduled for Feb. 26. About Bamby Express Bamby Express, Inc. is a small transportation company that operates a single semi-truck and trailer. It primarily offers freight and logistics services. Bamby Express sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-13689) on September 17, 2024, with up to $50,000 in assets and up to $500,000 in liabilities. Dusan Cirkovic, president of Bamby Express, signed the petition. Judge Timothy A. Barnes oversees the case. The Debtor is represented by: Richard G Larsen, Esq. Springer Larsen, LLC Tel: 630-510-0000 Email: rlarsen@springerbrown.com BARSCOTT LLC: Case Summary & One Unsecured Creditor --------------------------------------------------- Debtor: Barscott, LLC 825 S. Barrington Ave. Los Angeles, CA 90049 Business Description: Barscott, LLC is engaged in activities related to real estate. Chapter 11 Petition Date: February 4, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-10878 Debtor's Counsel: Gary E. Klausner, Esq. LEVENE, NEALE, BENDER, YOO & GOLUBCHIK LLP 2818 La Cienega Ave. Los Angeles, CA 90034 Tel: (310) 229-1234 E-mail: GEK@LNBYG.COM Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Logan A. Beitler, as manager. The Debtor has listed the Los Angeles County Tax Collector, P.O. Box 54018, as its only unsecured creditor. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/OZPPFUY/Barscott_LLC__cacbke-25-10878__0001.0.pdf?mcid=tGE4TAMA BLINK FITNESS: Judge Denies Chapter 11 Plan Exculpations -------------------------------------------------------- Rick Archer of Law360 reports that a Delaware bankruptcy judge on February 4, 2025, refused Blink Fitness' request to shield the administrator of its Chapter 11 wind-down plan from legal liability, ruling that future claims cannot be waived. About Blink Holdings Blink Holdings, Inc., d/b/a Blink Fitness, provides fitness services in the high value, low price fitness category. The business was launched in 2011 with only three locations in New York and New Jersey. By 2019, Blink Fitness had expanded to 92 corporate-owned locations and 10 franchised locations in New York, New Jersey, Massachusetts, Texas, Illinois, and California, and had just launched a proprietary mobile application to enhance member experience. Blink Holdings and more than 100 of its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11686) on Aug. 12, 2024. In the petition filed by President Guy Harkless, Blink Holdings disclosed $100 million to $500 million in assets against $100 million to $500 million in debt. The Hon. J. Kate Stickles presides over the cases. Young Conaway Stargatt & Taylor, LLP serves as the Debtors' counsel. Moelis & Company is the Debtors' investment banker and EPIQ Corporate Restructuring LLC is the Debtors' notice and claims agent. BROCATO'S SANDWICH: Court OKs Continued Access to Cash Collateral ----------------------------------------------------------------- Brocato's Sandwich Shop Inc. received sixth interim approval from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division to continue to use the cash collateral of its secured creditors. The court authorized the company to use cash the collateral of U.S. Foods, Inc., Gordon Food Service, Inc., and the Florida Department of Revenue to pay the expenses set forth in its budget, with a 10% allowance for each line item. As protection, the court granted secured creditors post-petition liens on the same terms as their pre-bankruptcy liens. Brocato's' authority to use cash collateral will continue until further order of the court. The next hearing is scheduled for March 6. Gordon Food Service can be reached through its counsel: Brad W. Hissing, Esq. Wetherington Hamilton, P.A. 812 W. Dr. MLK Jr. Boulevard, Suite 101 Tampa, FL 33603 Telephone: (813) 225-1918 ext. 129 Facsimile: (813) 225-2321 Email: bradh@whhlaw.com About Brocato's Sandwich Shop Brocato's Sandwich Shop, Inc. owns and operates a sandwich restaurant in Tampa, Fla. Brocato's filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 24-02613) on May 8, 2024, with $14,595 in assets and $1,396,391 in liabilities. Michael Brocato, president of Brocato's, signed the petition. Judge Roberta A. Colton oversees the case. The Debtor is represented by: Buddy D Ford, Esq. Jonathan A Semach, Esq. Buddy D. Ford, P.A. Tel: 813-877-4669 Email: buddy@tampaesq.com jonathan@tampaesq.com BUILDERS FIRSTSOURCE: Moody's Affirms 'Ba1' CFR, Outlook Stable --------------------------------------------------------------- Moody's Ratings affirmed Builders FirstSource, Inc.'s (BLDR) Ba1 Corporate Family Rating, Ba1-PD Probability of Default Rating and the Ba2 ratings on the company's senior unsecured notes. The SGL-1 Speculative Grade Liquidity Rating remains unchanged. The outlook is maintained at stable. RATINGS RATIONALE The affirmation of BLDR's Ba1 CFR recognizes the company's scale and market leadership in the distribution of structural building and manufactured products. BLDR has a proven track record of maintaining solid credit metrics and a low leverage through the cycle. Overall, adjusted debt-to-EBITDA should remain below 2.5x through 2026 and Moody's project robust free cash flow generation. While Moody's anticipate revenue to increase slightly in 2025 and 2026, BLDR will likely need to contend with some margin pressure in the next two years. Moody's project adjusted EBITDA margin in the range of 12% - 13.5% through 2026, down from 14.9% as of the last twelve months period ending September 30, 2024, driven by lower lumber prices and declining revenue from new multi-family construction. Intense competition and reliance on commodity-like products make material expansion of operating margins and market share gains difficult to achieve. New housing construction, the primary driver of BLDR's revenue, is very cyclical and can lead to volatility in volumes and earnings. BLDR has aggressive policies regarding share repurchases and the company may pursue large-debt financed acquisitions to expand its national footprint. The company's very good liquidity is a credit strength. BLDR's SGL-1 rating reflects Moody's view that the company will maintain very good liquidity, generating at least a $1 billion in annual free cash flow each of the next two years. BLDR has access to a $1.8 billion asset based revolving credit facility due 2028. Revolver availability totaled about $1.7 billion on September 30, 2024. BLDR uses the revolver for working capital, letters of credit and bolt-on acquisitions. The stable outlook reflects Moody's expectation that BLDR will continue to perform well, generating healthy margins and robust levels of free cash flow despite increased capital expenditures and some margin pressure. Very good liquidity and conservative financial policies further support the stable outlook. The Ba2 ratings on BLDR's senior unsecured notes, one notch below the corporate family rating, result from their subordination to the company's sizeable asset based revolving credit facility. The unsecured notes are pari passu to each other. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A ratings upgrade could occur if end markets remain supportive of organic growth such that adjusted debt-to-EBITDA is sustained around 2x and adjusted EBITDA margin remaining above 15%. Generation of strong free cash flow, preservation of very good liquidity, maintaining conservative financial policies and a capital structure that ensures maximum financial flexibility would also support upward ratings movement. A ratings downgrade could occur adjusted debt-to-EBITDA remains above 3x or if operating performance erodes on a sustained basis. Negative ratings pressure may also transpire if liquidity deteriorates or the company pursues sizeable debt-financed acquisitions or increasingly aggressive financial policies. BLDR (NYSE: BLDR), headquartered in Dallas, Texas, is the largest national distributor of manufactured products, lumber and other building products as well as value-added components and services to the professional contractor mainly for new residential construction. BLDR's revenue for the 12 months ending September 30. 2024 was $16.7 billion. The principal methodology used in these ratings was Distribution and Supply Chain Services published in December 2024. BURGERFI INT'L: Updates TREW Claims Pay Details; Files Amended Plan ------------------------------------------------------------------- BurgerFi International, Inc., and of Anthony's Pizza Holding Company, LLC and the Committee of Unsecured Creditors submitted a First Amended Combined Disclosure Statement and Joint Chapter 11 Plan of Liquidation dated January 27, 2025. The Debtors do not have ongoing business operations after the Sales and their activities have consisted primarily of post closing actions to facilitate or otherwise give effect to the transfer of assets and businesses to the Asset Purchasers pursuant to the Sale Orders. Following the closing of the Sales, the Debtors' assets consist primarily of the Retained Causes of Action. While the Debtors continue to hold certain Liquor Licenses from previously-closed locations, such assets are subject to Liens under the Senior Credit Facility and are not expected to yield proceeds available for creditors generally. The Debtors are no longer generating operating income and do not project further collections. The Plan relies on the Debtors' remaining cash on hand, on certain funds that have been escrowed in accordance with the DIP Order for the satisfaction of Professional Claims, and on all Allowed Claims that are Assumed Liabilities being satisfied by the applicable Asset Purchaser as required by the Asset Purchase Agreements and Sale Orders. The Debtors believe that these assets are sufficient to fund the Plan process, achieve confirmation, and position the Liquidating Trust to pursue the Retained Causes of Action. The amount and timing of Distributions under the Plan for General Unsecured Claims, if any, will depend on the outcome of litigation of the Retained Causes of Action. Class 3 consists of all TREW Claims. The TREW Claims are Allowed in the aggregate amount of $9,986,061. From the Effective Date and until the TREW Claims are satisfied in full, TREW shall receive in Cash the full amount of the proceeds, net of selling costs, of any disposition of any TREW Collateral. At TREW's election, the Liquidating Trustee shall promptly transfer all or any TREW Collateral to TREW or as directed by TREW, with any related costs or taxes to be borne by TREW, with the fair value of such transfer to be deemed a satisfaction and release of the TREW Claims in such amount. Without limiting the foregoing, on account of the TREW Claims: * On the Effective Date, all cash held by the Debtors (excluding the TREW Cash Contribution) after payment of or reserve for Allowed Administrative Claims, Priority Tax Claims, or Priority Non-Tax Claims shall be paid to TREW; and * If recovered by the Debtors or the Liquidating Trust, all adequate assurance deposits previously provided by the Debtors to any utility, or held by the Debtors for the benefit of any utility, and all refunds or returns of unearned premiums on insurance policies that have been canceled, rejected or terminated by the Debtors, shall be paid to TREW. On the Effective Date, except as may otherwise be expressly provided in the Confirmation Order, the Liquidating Trust Assets shall automatically vest in the Liquidating Trust free and clear of all Claims, Liens, and Interests other than the TREW Interests. TREW Contribution On the Effective Date, the TREW Cash Contribution shall be made to the Liquidating Trust. The TREW Cash Contribution shall be used to fund the costs of the Liquidating Trust and its pursuit of the Retained Causes of Action, and TREW shall not receive any Distributions from the TREW Cash Contribution. For the avoidance of doubt, the TREW Cash Contribution has already been funded to and is being held by the Debtors. On the Effective Date, TREW shall make the TREW Litigation Contribution to the Liquidating Trust. For each Liquor License that is TREW Collateral sold by the Liquidating Trust, the Liquidating Trust shall be entitled to a fee of 3% of the gross proceeds of such sale and shall be entitled to reimbursement from the gross proceeds of its direct expenses for such sale. TREW shall contribute, from the proceeds of Liquor License sales that would otherwise be payable to TREW as TREW Collateral, to the Liquidating Trust a total of $50,000 in exchange for the New Parent Equity. A full-text copy of the First Amended Combined Disclosure Statement and Plan dated January 27, 2025 is available at https://urlcurt.com/u?l=kphFip from Stretto, claims agent. Counsel to the Debtors: RAINES FELDMAN LITTRELL LLP Thomas J. Francella, Jr., Esq. Mark W. Eckard, Esq. 1200 N. Broom Street Wilmington, DE 19806 Telephone: (302) 772-5805 Email: tfrancella@raineslaw.com meckard@raineslaw.com - and - Hamid R. Rafatjoo, Esq. Robert S. Marticello, Esq. 1900 Avenue of the Stars, 19th Floor Los Angeles, CA 90067 Telephone: (310) 440-4100 Email: hrafatjoo@raineslaw.com rmarticello@raineslaw.com - and - David S. Forsh, Esq. 1350 Avenue of the Americas, 22nd Floor New York, NY 10019 Telephone: (917) 790-7100 Email: dforsh@raineslaw.com Co-Counsel for the Committee of Unsecured Creditors: Derek C. Abbott, Esq. Morris, Nichols, Arsht & Tunnell LLP 1201 North Market Street, 16th Floor PO Box 1347 Wilmington, DE 19899-1347 Tel: (302) 351-9357 Fax: (302) 658-3989 E-mail: dabbott@morrisnichols.com - and - Scott N. Opincar, Esq. McDonald Hopkins LLC 600 Superior Avenue, East, Suite 2100 Cleveland, OH 44114 Tel: (216) 348-5400 Email: sopincar@mcdonaldhopkins.com About BurgerFi Int'l BurgerFi International, Inc. (NASDAQ:BFI) is a multi-brand restaurant company that develops, markets, and acquires fast casual and premium-casual dining restaurant concepts around the world, including corporate-owned stores and franchises. BurgerFi International, Inc. is the owner and franchisor of two brands with a combined 144 locations: (i) Anthony's, a premium pizza and wing brand with 51 restaurants (50 corporate-owned casual restaurant locations and one dual brand franchise location), as of Sept. 10, 2024, and (ii) BurgerFi, among the nation's fast-casual better burger concepts with 93 BurgerFi restaurants (76 franchised and 17 corporate-owned) as of Sept. 10, 2024. BurgerFi International, Inc., and 114 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code on Sept. 11, 2024 (Bankr. D. Del. Lead Case No. 24-12017). The cases are pending before the Honorable Judge Craig T. Goldblatt. Raines Feldman Littrell LLP serves as the Debtors' counsel. Force Ten Partners' Jeremy Rosenthal serves as the Company's Chief Restructuring Officer. Sitrick And Company serves as strategic communications advisor to the Company. Stretto is the claims agent. CAI RENO: Credit Facility to Contribute to Plan Funding ------------------------------------------------------- Cai Reno Hotel Partners LLC filed with the U.S. Bankruptcy Court for the District of Nevada a Disclosure Statement in connection with Chapter 11 Plan of Reorganization dated January 27, 2025. The Debtor is a single purpose entity whose business purpose is to hold land for investment. The Debtor's ownership holdings consist of the following: (1) approximately 1.364 acres of undeveloped land located at 0 Island Avenue and 200, 219 and 223 Court Street, Reno, Nevada (APNs 011-112-03, 011-112-06, 011-112-07 & 011-112-12) (collectively, the "Undeveloped Property"); and (2) a contiguous parcel of real property that holds an existing structure located at 260 Island Ave, Reno, Nevada (APN 011-112-02) (the "Developed Property", collectively with the Undeveloped Property, the "Property"). The development of the Property and related investment is conducted through a business enterprise managed by Mr. Christopher Beavor and his management entity, Bristlecone (collectively, the "Beavor/Bristlecone Enterprise"). At any given time, the Beavor/Bristlecone Enterprise manages and facilitates numerous projects in varying stages of development, including Debtor's mixed-use hotel Project (the "Project"). The Debtor estimates the current value of the Property as $19,590,000. This is a "going concern" valuation and based upon the assumption that it will maintain all permits (including the Permits) and entitlements necessary to develop the Project and that the parcel consolidation occurs. The Debtor has decided to reorganize through paying off its Creditors in full over time while it seeks construction financing and otherwise seeks to advance the Project to completion. The Plan separates Claims against and Equity Interests in Debtor into Classes according to their relative seniority and other criteria, and provides for payment in full of all Claims over time as described below, provided that no Affiliate Claims will receive any distribution until all General Unsecured Claims have been satisfied in full. Class 5 consists of General Unsecured Claims. Each Holder of Class 5 Allowed General Unsecured Claims shall, in full satisfaction, settlement, release and exchange for such Allowed Class 5 General Unsecured Claim, be paid a Pro Rata share of quarterly installment payments of $250,000, commencing 90 days after the Effective Date until such time as each Holder of a Class 5 Allowed General Unsecured Claim is paid the principal amount of its Allowed General Unsecured Claim in full, without pre- or post- petition interest. Class 5 is Impaired. The allowed unsecured claims total $3,632,147.97. Class 6 consists of Affiliate Claims. Each Holder of Class 6 Allowed Affiliate Claims shall, in full satisfaction, settlement, release and exchange for such Allowed Class 6 Affiliate Claim, be paid the principal amount of its Allowed Affiliate Claim in full, without pre- or post- petition interest, with available Cash in the ordinary course of business as funds become available from the Project or related financing, with any such payments commencing only after all Holders of Allowed Claims in Classes of a higher priority are paid in full. Each holder of a Class 7 Equity Interest shall retain their Equity Interests under the Plan. Funding for all payments under the Plan shall be financed by Credit Facility LLC on finance terms agreeable between Debtor and Credit Facility LLC. Attached is a letter of intent from Credit Facility LLC evidencing its commitment to finance all payments required under the Plan (the "LOI"). In addition to its ability to draw upon such financing, Debtor reserves the right to raise funds for payments required by the Plan and for development of the Project via other means, including third-party financing and equity investments. On the Effective Date, Debtor shall make a draw on its financing from Credit Facility LLC to provide all Confirmation Funds for Distribution pursuant to the Plan. A full-text copy of the Disclosure Statement dated January 27, 2025 is available at https://urlcurt.com/u?l=BfTNYA from PacerMonitor.com at no charge. General Reorganization Counsel for Debtor: Brian L. Davidoff, Esq. Keith Patrick Banner, Esq. GREENBERG GLUSKER FIELDS CLAMAN & MACHTINGER LLP 2049 Century Park East, Suite 2600 Los Angeles, CA 90067 Tel: (310) 553-3610 Email: bdavidoff@greenbergglusker.com kbanner@greenbergglusker.com Nevada Reorganization Counsel for Debtor: CARLYON CICA CHTD. Candace C. Carlyon, Esq. Dawn M. Cica, Esq. 265 E. Warm Springs Road, Suite 107 Las Vegas, NV 89119 Phone: (702) 685-4444 Email: ccarlyon@carlyoncica.com dcica@carlyoncica.com About Cai Reno Hotel Partners LLC CAI Reno Hotel Partners LLC, in Las Vegas, NV, is a single purpose entity whose business purpose is to hold land for investment. The Debtor sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. D. Nev. Case No. 24-15652) on Oct. 29, 2024, listing as much as $10 million to $50 million in both assets and liabilities. Keighley Mahoney-Keough as manager, signed the petition. GREENBERG GLUSKER FIELDS CLAMAN & MACHTINGER LLP serve as the Debtor's legal counsel. CARLYON CICA CHTD. as local counsel. CDK GLOBAL II: Moody's Downgrades CFR & Senior Secured Notes to B3 ------------------------------------------------------------------ Moody's Ratings downgraded the ratings of CDK Global II LLC (CDK), including the corporate family rating to B3 from B2 and the probability of default rating to B3-PD from B2-PD. Moody's have also downgraded the ratings on the company's senior secured bank credit facility and the senior secured notes rating to B3 from B2, and the senior unsecured rating to Caa2 from Caa1. The outlook is maintained at stable. The downgrade of the rating reflects Moody's expectation for weak key credit metrics, including debt-to-EBITDA, EBITA-to-interest and retained cash flow to net debt. The downgrade also reflects Moody's expectation of increased customer churn resulting in declining EBITDA in 2025. While CDK remains a large player in the dealer management system space, it faces pressure from existing and new market entrants. This rating action follows the company's announcement of a $630 million antitrust lawsuit settlement which is subject to court approval. The initial payment, which is expected in February 2025, will result in a significant use of cash that was raised in the recent incremental term loan add-on. Other litigation, including an antitrust lawsuit from a competitor and lawsuits related to the June 2024 cybersecurity incident, also remains pending. Governance was a key consideration for this rating action. Governance factors including aggressive financial strategies and risk management practices resulted in high financial leverage. Further, the settlement of outstanding litigation will result in a significant cash outlay and could negatively impact the company's reputation and competitive position. RATINGS RATIONALE CDK's ratings reflect the company's very high leverage, weak credit metrics and Moody's expectation of negative free cash flow in 2025. Moody's expect 2025 revenue to modestly improve from 2024, which was negatively impacted by the cyber incident in June 2024. However, Moody's forecast revenue to be approximately 12% lower than 2023. Moody's forecast debt-to-EBITDA to increase to 9.7x at the end of 2025, up from 9.2x at the end of 2024. Moody's expect EBITDA margin to fall to approximately 35% in 2025 as operating efficiencies wane and the company increases its investment in research and development. Prior to the cyber incident, CDK averaged EBITDA margin around 45%. Moody's expect negative free cash flow in 2025 due to the $450 initial settlement payment. CDK will make the payment in February 2025 which will be funded with cash and a draw on the revolver. The remaining payments of the $630 million settlement amount will occur on the first, second and third anniversary of the settlement in the amount of $60 million per annum. Free cash flow is also constrained by the high interest expense burden. In 2026, free cash flow is forecast to be modestly positive and is dependent on the company's ability to increase revenue and enhance EBITDA margin. The stable outlook reflects Moody's expectations of modest revenue growth and expanding EBITDA margin in 2026, which should drive an improvement in leverage. It also reflects Moody's expectation of adequate liquidity, which will benefit from positive free cash flow in 2026. Moody's expect CDK to have adequate liquidity. Inclusive of the settlement payment in 2025, Moody's expect negative free cash flow of nearly $400 million. However, the company will have access to a $650 million revolving credit facility, which Moody's forecast to be partially drawn for the February 2025 initial settlement payment. CDK's revolver matures in 2027 and there are no other significant debt maturities until 2029 when the senior secured notes and the senior secured term loan mature. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS CDK's ratings could be upgraded if the company grows revenue, maintains or improves market share, and reduces debt-to-EBITDA below 7.0x while EBITDA-to-interest is above 2.0x. The ratings could be downgraded if performance deteriorates further as a result of increased customer churn or debt-to-EBITDA remains over 8.5x. Further, weaker liquidity, including from free cash flow that stays below breakeven or increased reliance on the revolver could result in a rating downgrade. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. CDK Global II LLC (CDK) headquartered in Austin, Texas, is a leading provider of integrated data and technology solutions to the automotive and heavy truck industries. The company provides software solutions to original equipment manufacturers and nearly 15,000 dealer locations in North America. CDK's flagship dealer management system (DMS) software solutions provides enterprise resource planning tools that help facilitate the sale of new and used vehicles, consumer financing, repair and maintenance services, and vehicle and parts inventory management. CDK is owned and controlled by private equity firm Brookfield Business Partners. Revenue for the twelve months ended September 30, 2024 were $1.62 billion. CENTRAL HOUSEWARES: Seeks to Use Cash Collateral ------------------------------------------------ Central Housewares, Inc. asked the U.S. Bankruptcy Court for the Eastern District of Wisconsin for authority to use cash collateral. The company will use the funds to pay expenses related to insurance, payroll, sales/real estate taxes, and post-petition trade payables. The U.S. Small Business Administration and Channel Partners Capital, LLC assert an interest in the company's cash collateral. Central Housewares was obligated to the SBA on a promissory note dated June 13, 2020 in the amount of $150,000 as part of the Economic Injury Disaster Loan program. The company executed and delivered to the SBA a Security Agreement dated June 13, 2020 granting the SBA a security interest in substantially all assets of the company. The company's obligation to the SBA appears to be secured by a properly perfected first-position security interest in substantially all assets of the company through the filing of a UCC-1 financing statement with the Department of Financial Institutions on June 30, 2020. The company is currently obligated to the SBA on a modified promissory note dated December 2, 2021 in the original principal amount of $500,000. Based on its books and records, Central Housewares owes approximately $77,036.23 to Channel Partners Capital, LLC. The company is currently obligated to Channel on a Business Loan and Security Agreement dated March 20, 2024 in the original principal amount of $150,000. The agreement also granted Channel a security interest in substantially all assets of the company, including its accounts receivable and inventory. The company's obligation to Channel appears to be secured by a properly perfected second-position security interest in substantially all assets of the company through the filing of a UCC-1 financing statement with the Department of Financial Institutions on March 21, 2024 numbered 20240321000048-4. To adequately protect the SBA, Central Housewares proposed monthly payments of the current contract amount on their obligations to the SBA in the amount of $2,484 per month. To adequately protect Channel, the company proposed monthly interest only payments on the balance of the business loan at a variable rate amortized over 7 years. The variable rate is subject to change on the first day of each month based on changes in the Wall Street Journal Prime Rate as published in the Money Rates table in the Wall Street Journal from time to time, plus one percent. The rate is currently 8.5% per annum. The monthly payments are currently calculated for $1,219.98 per month. In addition to the periodic cash payments set forth above, the company will (a) keep in full force and effect all casualty insurance and (b) provide reports of its receipts and distributions consistent with the monthly reporting requirements for chapter 11 cases. About Central Housewares Inc. Central Housewares, Inc. is a retailer of pools, spas, outdoor living equipment, as well as billiards and other table games. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Wisc. Case No. 25-20408-kmp) on January 27, 2025. In the petition signed by Jeffrey Desing, president, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Katherine M. Perhach oversees the case. Paul G. Swanson, Esq., at Swanson Sweet, LLP, represents the Debtor as legal counsel. CONTAINER STORE: U.S. Trustee Requests Bankruptcy Plan Appeal Stay ------------------------------------------------------------------ Rick Archer of Law360 reports that the U.S. Trustee's Office has urged a Texas bankruptcy judge to delay The Container Store's Chapter 11 plan while it appeals his decision that a creditor's failure to opt out of the plan's third-party releases signifies consent. About Container Store Group Inc. Container Store Group Inc. is a company renowned for for selling closet organizers and storage solutions. Container Store Group Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex.) on December 22, 2024. In its petition, the Debtor reports assets and liabilities between $100 million and $500 million. Honorable Bankruptcy Judge Alfredo R. Perez handles the case. Debtors' Legal Counsel is Timothy A. ("Tad") Davidson II, Esq., Ashley L. Harper, Esq., and Philip M. Guffy, Esq., at HUNTON ANDREWS KURTH LLP, in Houston, Texas. Debtors' Legal Counsel is George A. Davis, Esq., Hugh Murtagh, Esq., Tianjiao (TJ) Li, Esq., and Jonathan J. Weichselbaum, Esq., at LATHAM & WATKINS LLP, in New York, and Ted A. Dillman, Esq., in LATHAM & WATKINS LLP, in Los Angeles, California. Debtors' Investment Banker is HOULIHAN LOKEY CAPITAL, INC. Debtors' Claims, Noticing & Solicitation Agent is VERITA GLOBAL (Previously KURTZMAN CARSON CONSULTANTS LLC). COVIA HOLDINGS: Moody's Hikes CFR to 'B1', Outlook Stable --------------------------------------------------------- Moody's Ratings upgraded Covia Holdings LLC's (Covia) corporate family rating to B1 from B2 and the probability of default rating to B1-PD from B2-PD. Moody's also assigned a B1 rating to the company's proposed senior secured bank credit facility, consisting of a $150 million revolving credit facility due 2030 and a $850 million senior secured term maturing 2032. The outlook is maintained at stable. The upgrade of Covia's CFR reflects Moody's expectation that Covia will perform well and maintain low leverage, with adjusted debt-to-EBITDA of close to 3.5x by late 2026. Covia will use the proceeds of the proposed term loan to pay off its existing term loan maturing 2026, at which time the rating on the existing term loan will be withdrawn. "Debt leverage trending towards 3.5x combined with Covia's commitment to conservative financial policies and leading market position in a niche industry merits the rating upgrade," according to Peter Doyle, a Moody's Ratings VP-Senior Analyst. RATINGS RATIONALE Covia's B1 CFR reflects the company's leading position in a niche industry as an industrial minerals producer in North America with meaningful scale of close to $1 billion annual revenue and strong profit margins. The divestment of the company's energy business in 2024 has improved the company's business profile because it reduced the company's exposure to the inherent cyclicality and capital intensiveness of that segment. Moody's expect continued healthy operating performance, with adjusted EBITDA margin above 25% in the next two years. As a leading industrial minerals producer in North America, Covia is able to adjust production mix and origin-destination pairings to better meet demand from industrial customers, which contribute to its strong operating performance. Modest economic growth in the US should benefit end markets served by Covia. However, the rating is constrained by the inherent cyclicality of demand which tends to be higher than for other traditional building materials companies given the company's exposure to industrial end markets, modest scale, and potential for large debt-financed acquisitions or dividends to the company's private-equity owners. Moody's project Covia will maintain good liquidity, generating reasonable free cash flow in each of the next two years. Covia has the capacity to generate free cash flow in each quarter. Cash on hand totaled about $110 million on September 30, 2024, and is another source of liquidity. Covia will have full access to a $150 million revolving credit facility due 2030 and no material near-term debt maturities. The stable outlook reflects Moody's expectation that Covia will continue to perform well, generating healthy margins that will support a gradual deleveraging through 2026. Good liquidity, no material near-term debt maturities and end market dynamics that support modest long-term growth further support the stable outlook. The B1 rating on Covia's senior secured bank credit facility, the same rating as the corporate family rating, results from its position as the preponderance of debt in the company's capital structure. The revolving credit facility and term loan are pari passu to each other. Both have a first lien on all of the company's domestic assets. Marketing terms for the new credit facilities (final terms may differ materially) include the following: incremental pari passu debt capacity up to the greater of 100% of consolidated EBITDA and an equivalent dollar amount, plus unlimited amounts subject to pro forma first lien net leverage of 4.75x. There is an inside maturity sublimit up to the greater of 50% of consolidated EBITDA and an equivalent dollar amount. A "blocker" provision restricts (i) the designation of a restricted subsidiary as an unrestricted subsidiary if it owns material IP; or (ii) transfers of material IP by loan parties to unrestricted subsidiaries. The credit agreement is expected to provide some limitations on up-tiering transactions, requiring affected lender consent for amendments that contractually subordinate the debt or liens, unless such lenders can ratably participate in such priming debt. Amounts up to 100% of unused capacity under the builder basket and the general RP basket may be reallocated to incur debt, which may be secured on a junior basis. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A ratings upgrade could occur if end markets remain supportive of organic growth leading to a meaningful increase in scale, adjusted debt-to-EBITDA sustained below 4x and robust positive free cash flow generation. Preservation of good liquidity and predictable financial policies regarding capital deployment would also support upward ratings movement. A ratings downgrade could occur if adjusted debt-to-EBITDA remains above 5x or if operating performance erodes on a sustained basis. Negative ratings pressure may also transpire if liquidity deteriorates or the company pursues aggressive acquisitions or shareholder return initiatives. Covia Holdings LLC, headquartered in Independence, Ohio, is a leading provider of specialty sands and minerals serving diverse industrial end markets including sports and recreation, building products and metals and foundry. Covia spun off its energy business on July 1, 2024. Golden Gate Capital, and Anchorage Capital Advisors, through their respective affiliates, together own around 85% of Covia. The principal methodology used in these ratings was Building Materials published in September 2021. CRUSADE BURGER: Court Extends Cash Collateral Access to March 28 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, extended Crusade Burger Bar, LLC's authority to use its secured creditor's cash collateral from Jan. 29 to March 28. The interim order signed by Judge Jacqueline Cox authorized the company to use the cash collateral of CFG Merchant Solutions, LLC for operating expenses set forth in its budget. CFG was granted replacement liens and security interests in certain assets of the company to the same extent, validity and priority held by the secured creditor prior to the petition date. A status hearing is scheduled for March 25. About Crusade Burger Bar Crusade Burger Bar, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-10008) on July 10, 2024, listing $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Jacqueline P Cox presides over the case. The Debtor is represented by: Konstantine T. Sparagis, Esq. Law Offices of Konstantine Sparagis, PC 900 W. Jackson Blvd., Ste. 4E Chicago, IL 60607 Tel: 312-753-6956 Email: gsparagi@yahoo.com DECORATIVE PLUMBING: Gets Interim OK to Use Cash Collateral ----------------------------------------------------------- Decorative Plumbing Distributors, LLC received interim approval from the U.S. Bankruptcy Court for the Northern District of California to use its secured creditors' cash collateral to pay operating expenses. The cash collateral consists of approximately $480,211 in the company's deposit accounts and approximately $2,093,724 in outstanding accounts receivable. The secured creditors that assert interests in the cash collateral are Bank of America, N.A., Samson MCA, LLC, Austin Business Finance, LLC (Backd), Leaf Capital Funding, Drip Capital, Inc., the U.S. Small Business Administration, and Web Bank also known as Marlin Leasing Peac. These creditors, together, hold $7,386,255 in claims against Decorative. As protection, secured creditors will be granted replacement liens on the cash collateral in the same amount, validity and priority existing as of the petition date. As additional protection, Bank of America and the SBA will receive monthly payments of $23,000 and $2,527, respectively. The final hearing is scheduled for Feb. 14. Bank of America can be reached through its counsel: Jennifer Witherell Crastz, Esq. Hemar, Rousso & Heald, LLP 15910 Ventura Boulevard, 12th Floor Encino, CA 91436-2829 Tel: (818) 501-3800 Fax: (818) 501-2985 Email: jcrastz@hrhlaw.co About Decorative Plumbing Distributors Decorative Plumbing Distributors, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-40140) on January 28, 2025, listing up to $10 million in assets and up to $50 million in liabilities. Anne Butler, chief executive officer of Decorative Plumbing Distributors, signed the petition. Judge Charles Novack oversees the case. Chris Kuhner, Esq., at Kornfield, Nyberg, Bendes, Kuhner & Little P.C., represents the Debtor as legal counsel. DENT TECH: Unsecured Creditors Will Get 79.70% of Claims in Plan ---------------------------------------------------------------- Dent Tech Laboratory, Inc., submitted a Fourth Amended Disclosure Statement describing Fourth Amended Plan of Reorganization dated January 27, 2025. The Plan will be financed from continuing operating income, reorganized business operations of the Debtor, from the timely collections of outstanding receivables, as well as from funds accumulated in the Debtor's in Possession accounts. Class I consists of the claims of general unsecured creditors of the Debtor, totaling $117,093.19: * The claim of JPMorgan Chase Bank, N.A. in the amount of $4,047.80 to be paid 79.70% ($3,225.45) on the effective date. * The claim of JPMorgan Chase Bank USA, N.A. in the amount of $13,635.56 to be paid 79.70% ($10,867.54) on the effective date. * The claim of JPMorgan Chase Bank USA, N.A. in the amount of $99,120.45 was settled pursuant to the terms of the settlement agreement reached between the Debtor and JPMorgan Chase Bank N.A. (the "Lender"). In accordance with said terms, the plan offers the creditor JPMorgan Chase Bank N.A. as follows: in full and final satisfaction of JPMorgan Chase Bank N.A.'s claim against the Debtor, and in full and final satisfaction of the Guarantor's judgment, the Debtor shall pay to JPMorgan Chase Bank N.A. the amount of $79,000.00 (the "settlement amount"). The Settlement Agreement was approved by the Bankruptcy Court order entered on January 12, 2025. The payment under the Settlement Agreement was made in full by wire transfer on January 21, 2025. The Settlement payment of $79,000.00 constitutes 79.70% of the claim of JPMorgan Chase Bank N.A. * The claim of American Express in the amount of $289.38 shall be paid 79.70% ($230.63) on the effective date. The Plan will be financed from continuing operating income, reorganized business operations of the Debtor, from the timely collections of outstanding receivables, as well as from funds accumulated in the Debtor in Possession accounts. A full-text copy of the Fourth Amended Disclosure Statement dated January 27, 2025 is available at https://urlcurt.com/u?l=G6G2oC from PacerMonitor.com at no charge. Attorney for the Debtor: Alla Kachan, Esq. 2799 Coney Island Ave., Ste. 202 Brooklyn, NY 11235 Tel: (718) 513-3145 Fax: (347) 342-315 E-mail: alla@kachanlaw.com About Dent Tech Laboratory Dent Tech Laboratory, Inc., operates a dental laboratories business. Dent Tech Laboratory sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-41469) on June 23, 2022, listing up to $50,000 in assets and up to $500,000 in liabilities. Gregory B. Mashevich, president, signed the petition. Judge Elizabeth S. Stong oversees the case. Alla Kachan, Esq., at the Law Offices of Alla Kachan P.C. and Wisdom Professional Services, Inc. serve as the Debtor's legal counsel and accountant, respectively. DIOCESE OF BURLINGTON: Plan Exclusivity Period Extended to July 28 ------------------------------------------------------------------ Judge Heather Z. Cooper of the U.S. Bankruptcy Court for the District of Vermont extended the Roman Catholic Diocese of Burlington Vermont's exclusive periods to file a plan of reorganization and obtain acceptance thereof to July 28 and September 29, 2025, respectively. As shared by Troubled Company Reporter, the Diocese believes that the limited proposed extension to formulate and file a plan sought in the Motion will be beneficial to the estate, will allow the plan to be based on more accurate information, and will result in a more efficient use of the estate's assets for the benefit of all creditors. The status of the case and the application of the factors support the conclusion that an extension of the exclusivity period and solicitation period is warranted in the Diocese's case. The Diocese claims that the extensions sought will be beneficial to the Diocese as well as creditors and other parties in interest; will provide time to attempt to reach a consensus regarding plan terms; will allow the plan to be based on more accurate information; and will result in a more efficient use of estate assets for the benefit of all creditors. The Diocese believes that an acceptable plan can be developed within the requested extensions of the exclusivity period and solicitation period but reserves the right to request additional extensions. The Diocese's request for an extension is modest and does not impermissibly extend the dates for filing and solicitation past the time periods provided for in Sections 1121(d)(2)(A) and (B) of the Bankruptcy Code. Accordingly, the exclusivity period and solicitation period should be extended to afford the Diocese a full and fair opportunity to negotiate, propose, and seek acceptance of a plan. The Roman Catholic Diocese Of Burlington is represented by: Raymond J. Obuchowski, Esq. OBUCHOWSKI LAW OFFICE 1542 Route 107, PO Box 60 Bethel, VT 05032 Phone: (802) 234-6244 Email: ray@oeblaw.com James L. Baillie, Esq. Steven R. Kinsella, Esq. Samuel M. Andre, Esq. Katherine A. Nixon, Esq. FREDRIKSON & BYRON, P.A. 60 South Sixth Street, Suite 1500 Minneapolis, MN 55402-4400 (612) 492-7000 Email: jbaillie@fredlaw.com skinsella@fredlaw.com sandre@fredlaw.com knixon@fredlaw.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. DISTRICT 5 BOUTIQUE: Gets Final OK to Use $286K in Cash Collateral ------------------------------------------------------------------ District 5 Boutique, LLC received final approval from the U.S. Bankruptcy Court for the District of New Jersey to use cash collateral. The final order signed by Judge Vincent Papalia authorized the company to use up to $286,795 in cash collateral to pay the expenses set forth in its budget, which shows projected operating expenses of $102,316 per month. As protection for the use of its cash collateral, Newtek Small Business Finance, LLC, a secured creditor, was granted a replacement lien on the company's post-petition collateral and proceeds, with the same priority as its pre-bankruptcy lien. The secured creditor will also receive a monthly payment of $6,645 as additional protection. Newtek asserts a secured claim against the company in the approximate principal amount of $300,000. Meanwhile, the court approved the monthly payment of $2,321 to another creditor, Fox Capital Group, Inc. Fox Capital Group previously objected to the company's application to use cash collateral. On Jan. 29, the court issued a consent order resolving the objection. Newtek can be reached through its counsel: Tara J. Schellhorn, Esq. Tod S. Chasin, Esq. Riker Danzig, LLP Headquarters Plaza, One Speedwell Avenue Morristown, NJ 07962-1981 Telephone: (973) 538-0800 Facsimile: (973) 538-1984 tschellhorn@riker.com tchasin@riker.com About District 5 Boutique District 5 Boutique, LLC, is a family-owned retailer of clothing and clothing accessories in Kenilworth, N.J. District 5 Boutique filed Chapter 11 petition (Bankr. D.N.J. Case No. 24-15612) on June 3, 2024, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Theresa DeMarco, sole member, signed the petition. The Debtor is represented by: Donald F. Campbell, Jr., Esq. Giordano Halleran & Ciesla, P.C. Tel: 732-741-3900 Email: dcampbell@ghclaw.com DP AUTO SALES: Unsecureds Will Get 13.1% Dividend over 5 Years -------------------------------------------------------------- DP Auto Sales, Ltd., d/b/a Byrider, filed with the U.S. Bankruptcy Court for the Western District of Texas a First Amended Plan of Reorganization dated January 24, 2025. The Debtor's business operation consisted of purchasing used cars from wholesalers or at auctions, reconditioning the vehicles, and reselling them to the public. Byrider franchises operate under the "Buy Here Pay Here" business model ("BHPH"), where customers can "Buy, Finance and Drive On" through inhouse financing offered by in Debtor's case its affiliated non debtor company DPAC Acceptance, Ltd. ("DPAC Acceptance"). The Debtor was formed in 2002 by James W. Day, Jr. The membership structure of the Debtor consists of its General Partner D.P. Auto, LLC, its limited partner Day and Day's spouse Jennifer Day which hold 1%, 51%, and 48% interest respectively. When the bankruptcy case was filed, the Debtor owns and operates three used car sales dealerships under the Byrider franchise and had approximately 100 full and part time employees. The purpose of the Plan is to reorganize the Debtor by materially reducing its overhead and condensing operations down to one sales location, which will allow it to focus on rehabilitating and reselling repossessed vehicles received from its financing affiliate, DPAC Acceptance, Ltd. Debtor was forced to change its model substantially because DPAC was cut off from the credit needed to fund new sales contracts, which ultimately funded Debtor's ability to obtain new inventory. DPAC's and Debtor's assets are fully secured through Plains Capital Bank's funding of the sales contracts. Debtor's Plan allows for a 13.1% dividend to the general unsecured creditors over a 5-year period. The plan is amended to correct several procedural concerns raised by the United States Trustee, to advise creditors about pending litigation, and to modify the NextGear plan treatment. The final Plan Payment is expected to be paid on or before the fifth anniversary following the date that the first payment is due under the Plan. This Plan of Reorganization under Chapter 11 of the Bankruptcy Code proposes to pay the Allowed Claims of the Debtor out of cash flow from operations. The Class 3 Claims consist of the Holders of General Unsecured Claims. Debtor shall pay the allowed Class 3 Claims their pro rata share of 20 quarterly payments ("Quarterly Payments") of Debtor's disposable income. The first payment shall be made on April 1, 2025, and each subsequent payment shall be made on the first day of the month of the following quarter until 20 payments have been made. The Class 3 Claims are deemed to be impaired. On the Effective Date, all shares in the Reorganized Debtor shall revest with the holders of membership interests in the same number as they existed at the time of the Petition Date. The Plan will be funded through Debtor's continued operations and through the use of cash collateral. Debtor's continued operations should be sufficient to enable the Reorganized Debtor to operate as shown on Debtor's five-year projection. A full-text copy of the First Amended Plan dated January 24, 2025 is available at https://urlcurt.com/u?l=6s2Wab from PacerMonitor.com at no charge. Counsel to the Debtor: Ronald J. Smeberg, Esq. The Smeberg Law Firm, PLLC 4 Imperial Oaks San Antonio, TX 78248 Tel: (210) 695-6684 Fax: (210) 598-7357 Email: ron@smeberg.com About DP Auto Sales DP Auto Sales, Ltd, doing business as Byrider, is an automobile dealer in San Antonio, Texas. DP Auto Sales filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. W.D. Texas Case No. 24-51135) on June 20, 2024, listing as much as $1 million to $10 million in both assets and liabilities. Jody Anderson, president, signed the petition. Judge Craig A. Gargotta oversees the case. The Smeberg Law Firm serves as the Debtor's bankruptcy counsel. DRIP MORE: Court Extends Cash Collateral Use to Feb. 19 ------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California issued an interim order granting Drip More, LLC's second motion for authority to use cash collateral. The court extended the use of cash collateral through Febr. 19. The next hearing is scheduled for Feb. 19. About Drip More Drip More, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-11703) on July 5, 2024, listing up to $500,000 in assets and up to $10 million in liabilities. Brian Bereber, managing member of Drip More, signed the petition. Judge Scott C. Clarkson oversees the case. The Debtor represented by: Roksana D. Moradi-Brovia, Esq. Rhm Law, LLP Tel: 818-933-2843 Email: roksana@rhmfirm.com EASTERN MAINE HEALTHCARE: S&P Lowers Taxable Bonds Rating to 'BB-' ------------------------------------------------------------------ S&P Global Ratings lowered its rating three notches to 'BB-' from 'BBB-' on Maine Health & Higher Educational Facilities Authority's bonds, issued for Eastern Maine Healthcare Systems (doing business as Northern Light Health [NLH]) and on NLH's taxable bonds and removed the rating from CreditWatch, where it was placed with negative implications on Oct. 22, 2024. The outlook is negative. "The downgrade reflects persistent operating losses that resulted in debt service coverage (DSC) covenant violations in 2024 and 2022 and that have led to an increasingly weak balance sheet with light unrestricted reserves and reliance on third-party advances and lines of credit for operating liquidity," said S&P Global Ratings credit analyst Cynthia Keller. Securing the bonds is a mortgage on certain properties and a revenue pledge from the obligated group, which includes the parent, flagship Northern Light Eastern Maine Medical Center (EMMC), and all remaining hospitals in the system except Northern Light Mayo Hospital. NLH is a key provider of rural health care in northern Maine with a solid business position anchored by its tertiary flagship EMMC in Bangor. Demand trends have been favorable, but the system's struggles around clinical and physician staffing, length of stay, and heightened losses at certain hospitals, including EMMC, have constrained earnings. NLH met its DSC covenant in 2023 by prefunding six months of debt service using proceeds from LOCs deposited as a lump sum in an irrevocable escrow and then, in place of the typical monthly debt service payments, NLH instead repaid the line of credit draws. Although NLH employed this strategy in 2024 by depositing $31 million into escrow, due to its high losses, it was unable to meet its coverage requirements, which triggered a debt service covenant violation under its LOC and a consultant call in requirement (the process is underway, but firm has not yet been selected) under its master trust indenture (MTI) as coverage was less than 1.2x. In 2025 NLH is prefunding debt service and has deposited almost $11 million into an escrow in January with a similar amount expected to be paid in April. In S&P's view, these deposits lower the likelihood of a DSC covenant violation under the MTI in 2025, presuming losses are modest. Inability to meet the coverage requirement for two consecutive years would result in an event of default on the rated bonds. "The negative outlook incorporates persistent operating losses that weakened balance-sheet metrics providing limited flexibility during this period of earnings and cash flow stress," added Ms. Keller. Without NLH demonstrating a trend of underlying financial improvement, absent one-time benefits, a further downgrade is possible. EDGEWATER GENERATION: Moody's Affirms B3 Rating on Sec. Bank Loans ------------------------------------------------------------------ Moody's Ratings has affirmed the Ba3 rating on Edgewater Generation, L.L.C.'s (Edgewater) senior secured bank credit facilities. The rating outlook is stable. RATINGS RATIONALE The rating action at Edgewater reflects Moody's view that the proposed amendment upsizing, removal of the target debt balance and loosening of the excess cash flow sweep to a flat 50% throughout the debt term, while credit negative, are balanced by strong market fundamentals for generating assets, particularly those operating in PJM Interconnection, L.L.C. (PJM Aa2 stable). Recent strong capacity auction prices in PJM, increasing demand for power generation resources, and, to a somewhat lesser extent, improvements in energy margins are expected to offset the impact of the weakened debt terms on credit metrics following the upsizing. The rating considers the benefits of a four asset portfolio with operations in both PJM and ISO-New England. Two assets, Fairless and Garrison, are located in EMAAC, a premium capacity pricing region in PJM and one asset, Manchester, is located in SENE, a premium pricing region in ISO-New England. Fairless, at 1.3 GW is the largest natural gas powered generator in its area and the portfolio's anchor asset is the largest energy margin contributor in the portfolio. Fairless benefits from a dispatch advantage because of its location on the Pennsylvania side of the PA/NJ border where it is not subject to emissions expenses related to the Regional Greenhouse Gas Initiative (RGGI) that plants in NJ are required to pay. Additionally, Garrison, West Lorain, and Manchester all have dual fuel capability that provides the flexibility to switch to fuel oil from natural gas feedstock in periods of high gas demand, thereby reducing the risk of nonperformance in high stress periods. Edgewater should be able to produce strong cash flows throughout the next couple years. Proforma for the upsize, Moody's project that Edgewater Generation can produce a debt service coverage ratio above 2x, project cash flow to debt of 13-15% and debt/EBITDA around 4x in 2025. Notwithstanding this anticipated performance in 2025 and beyond, Edgewater's most recent credit metrics were weak for the Ba-rating category with the twelve month period ended September 30, 2024, producing a 1.8 DSCR with 6% project cash flow to debt and 6.2x debt to EBITDA. Because of the improved financial prospects, Moody's project Edgewater can produce average credit metrics for the Ba rating category over the next couple years and that about 50% debt will be outstanding at maturity. RATING OUTLOOK The stable outlook is based on Moody's expectation for consistent operating performance and credit metrics appropriate for the Ba rating category, including CFO/Debt above 10%, DSCRs above 2x and debt-to-EBITDA below 4.5x. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A ratings upgrade could occur if capacity auction results return to zonal premiums or if strong energy margins drive sustainable growth in cash flows and deleveraging, such that Edgewater produced a historical track record of strong metrics, including CFO/Debt sustained comfortably above 15%, leverage below 4x and DSCRs above 2.5x on an ongoing basis. A ratings downgrade could occur if energy margin compression or weaker than expected operating performance leads to a deterioration in credit metrics including leverage above 6x, single-digit project CFO/Debt or DSCRs below 1.4x for a sustained period. PROFILE Edgewater Generation, L.L.C. (Edgewater or project) is a bankruptcy remote entity owned by affiliates of Lotus Infrastructure Partners (Lotus or the project sponsor) that owns a 2,684 MW portfolio of four operational power plants. All assets are wholly owned by Lotus and are unlevered. The plants include Fairless Energy Center (1,320 MW CCGT) located in Pennsylvania, Garrison Energy Center (309 MW dual fuel CCGT) located in Delaware, West Lorain Power (545 MW CT) located in Ohio, and Manchester Street Station (510 MW dual fuel CCGT) located in Rhode Island LIST OF AFFECTED RATINGS Issuer: Edgewater Generation, L.L.C. Assignments: Senior Secured Term Loan B, Assigned Ba3 Affirmations: Senior Secured Bank Credit Facility, Affirmed Ba3 Outlook Actions: Outlook, Remains Stable METHODOLOGY The principal methodology used in these ratings was Power Generation Projects published in June 2023. ERC MANUFACTURING: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: ERC Manufacturing, Inc. Carr 814 KM 0.8 Cedro Abajo Naranjito, PR 00719 Business Description: The Debtor owns the property located at Carr 814 Km 0.8 Cedro Abajo, Naranjito, Puerto Rico, spanning 6,977.84 square meters. It includes a two-story commercial office building, two metal concrete industrial buildings, 28 parking spaces, two offices, two terraces, two workshops, two mezzanines, and two bathrooms. The appraised value is $213,000, as of July 27, 2016. Chapter 11 Petition Date: February 4, 2025 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 25-00475 Debtor's Counsel: Juan C. Bigas, Esq. JUAN C. BIGAS LAW PO Box 7011 Ponce, PR 00732-7011 Tel: (787) 259-1000 Fax: (787) 842-4090 E-mail: cortequiebra@yahoo.com Total Assets: $785,322 Total Liabilities: $1,599,734 The petition was signed by Axel Hiram Elias Cintron 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/J5VI4PY/ERC_MANUFACTURING_INC__prbke-25-00475__0001.0.pdf?mcid=tGE4TAMA EXPRESS MOBILE: Seeks Subchapter V Bankruptcy in Pennsylvania ------------------------------------------------------------- On January 31, 2025, Express Mobile Diagnostic Services LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Pennsylvania. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Express Mobile Diagnostic Services LLC Express Mobile Diagnostic Services LLC is a medical and diagnostic laboratory that offers x-ray scanning services for all major areas of the body. Express Mobile Diagnostic Services LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20255) on January 31, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by: Brian C. Thompson, Esq. THOMSON LAW GROUP, P.C. 301 Smith Drive, Suite 6 Cranberry Township, PA 16066 Tel: (724) 799-8404 Fax: (724) 799-8409 Email: bthompson@thompsonattorney.com EYM PIZZA: Sells 77 Pizza Hut Locations --------------------------------------- Kirk O'Neil of The Street reports that bankrupt Pizza Hut franchisee EYM Pizza L.P., which once owned 142 of the chain's franchise locations, sold 77 of its restaurants in Georgia, Illinois, South Carolina, and Wisconsin to six separate bidders, including Yum Brands (YUM) franchisor Pizza Hut LLC, at a bankruptcy auction for about $11.78 million. Pizza Hut LLC, which was the stalking horse bidder for 39 of the locations, won an auction for 18 locations, according to bankruptcy court filings, Restaurant Business reported on January 30, 2025. The giant pizza chain could operate the locations itself or sell them to franchisees, the report states. About EYM Pizza LP EYM Pizza LP is a Pizza Hut franchisee. EYM Pizza LP and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 24-41669) on president of EYM Group Inc., the Debtor reports estimated assets under $2.25 million and estimated liabilities more than $21 million. Howard Marc Spector, Esq. at Spector & Cox, PLLC, is the Debtors' counsel. National Franchise Sales is the Debtors' financial advisor for the sale of the assets or businesses of the Debtors. FIRST COAST: Unsecureds Will Get 10% of Claims over 60 Months ------------------------------------------------------------- First Coast Roll Offs, LLC filed with the U.S. Bankruptcy Court for the Middle District of Florida an Amended Subchapter V Plan of Reorganization dated January 24, 2025. The Debtor is the operator of a land clearing and real estate dumpster/roll off bin business which operates in Jacksonville, Florida and surrounding Counties. The business was started in June of 2015 by John H. Adams, Jr. and has continuously operated since that time. This Chapter 11 followed in order to restructure the existing secured and unsecured debt. The Debtor has restructured its business model after the filing of Chapter 11 in order to focus on a smaller payroll and on storage for land clearing which will allow the debtor to cash flow more regularly. The Debtor has approached several third parties to purchase the current equipment and inventory as listed for sale for approximately $2,000,000.00 in order to pay off the USA/SBA, IRS and administrative priority wage debts in this case in full. The Debtor will also allow a portion of the business assets to be used during the plan term by First Coast Wood Recycling. That company is owned by John Adams who is the owner of the Debtor. First Coast Wood Recycling will pay for the land and equipment used to run the land clearing storage business. Those changes, along with the reduction in payroll expenses should allow the debtor to successfully reorganize. This Plan of Reorganization proposes to pay unsecured creditors of the Debtor all disposable income during months 1-60 from future income of the Debtor derived from income generated from the business that the Debtor owns in order to obtain a discharge. This Plan provides for 10 class(es) of secured claims, 1 Classes of Priority Claims and 1 class of unsecured claims. Unsecured creditors holding allowed claims will receive distributions which the proponent of this Plan has valued at approximately 10 cents on the dollar based upon current projections of disposable income. This Plan also provides for the payment of administrative and priority claims either upon the effective date of the Plan or as allowed under the Bankruptcy Code. Class 12 consists of All General Unsecured Claims. To the extent that unsecured claims are filed and allowed, the Debtor shall pay the total amount of unsecured claims any remaining proceeds from the sale of the business assets to a third party after repayment of the USA/SBA, IRS and all wage claims. The Debtor estimates a 10% repayment of all unsecured claims. A full-text copy of the Amended Subchapter V Plan dated January 24, 2025 is available at https://urlcurt.com/u?l=Waatqo from PacerMonitor.com at no charge. Counsel to the Debtor: Bryan K. Mickler Law Offices of Mickler & Mickler, LLP 5452 Arlington Expressway Jacksonville, FL 322211 Tel: (904) 725-0822 Fax: (904) 725-0855 About First Coast Roll Offs First Coast Roll Offs, LLC is a waste management company based in St. Augustine, Fla., specializing in providing roll-off dumpster rental services. First Coast Roll Offs filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02476) on August 19, 2024, with total assets of $1,717,750 and total liabilities of $2,613,527. L. Todd Budgen, Esq., a practicing attorney in Longwood, Fla., serves as Subchapter V trustee. Judge Jacob A. Brown oversees the case. Bryan K. Mickler, Esq., at the Law Offices of Mickler & Mickler, LLP is the Debtor's bankruptcy counsel. FOUR SEAS: Gets Final OK to Access Cash Collateral -------------------------------------------------- Four Seas Mobile Catering, LLC received final approval from the U.S. Bankruptcy Court for the Western District of North Carolina, Charlotte Division, to use cash collateral. The final order authorized the company to use cash collateral for operating expenses consistent with its budget. The company's expenses must not exceed the budget by more than 10% variance per line item over a four-week rolling period. The budget shows weekly expenses of $56,410.00 for the period from Jan. 20 to Feb. 10. Creditors were granted a replacement lien on the company's property with the same priority as their pre-bankruptcy lien. About Four Seas Mobile Catering Four Seas Mobile Catering, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. W.D.N.C. Case No. 24-30880) on October 8, 2024, listing up to $50,000 in assets and up to $1 million in liabilities. Judge Ashley Austin Edwards oversees the case. The Debtor is represented by: John C. Woodman Essex Richards Tel: 704-377-4300 Email: jwoodman@essexrichards.com FREEDOM MORTGAGE: S&P Rates $500MM Senior Unsecured Notes 'B' ------------------------------------------------------------- S&P Global Ratings assigned its 'B' issue rating and a '4' recovery rating to Freedom Mortgage Holdings LLC's $500 million senior unsecured notes due 2032. The '4' recovery rating indicates our expectation of average (30%-50%; rounded estimate: 40%) recovery in a simulated default scenario. S&P said, "We expect the transaction to be leverage neutral. The company plans to use the net proceeds to partially repay outstanding borrowings under the MSR portion of its KeyBank credit facility, which had an outstanding balance of about $633 million as of Sept. 30, 2024. "We also expect Freedom's debt to tangible equity to be about 2.1x pro forma for this transaction (doesn't include the fourth quarter 2024 expected earnings). Although this is above our base-case expectation, we think Freedom will reduce leverage back below 1.5x over the next 12-24 months by organically growing equity. In our view, the transaction doesn't affect the company's credit quality so our issuer credit rating on Freedom (B/Stable/--) is unchanged. "The stable outlook reflects our expectation that in the next 12 months, Freedom will continue to have low mortgage originations while maintaining debt to EBITDA around 5x, debt to tangible equity around 1.5x, and EBITDA interest coverage above 2x. We also expect Freedom will continue to build its servicing book organically and through purchases while maintaining sufficient liquidity. "We could lower the ratings in the next 12 months if we expect the company to sustain debt to tangible equity over 1.5x, EBITDA interest coverage below 2x, or debt to EBITDA significantly above 5x. We could also lower the ratings if Freedom encounters additional regulatory actions or scrutiny, or if the company buys back debt at distressed levels--which we could view as a de facto restructuring tantamount to default." Issue Ratings--Recovery Analysis Key analytical factors -- S&P's simulated default scenario contemplates a default in 2028, due to a rapid decline in (mortgage servicing rights) MSR valuations. There could also be financial strain from regulatory changes or operational issues. -- As the company approaches default, S&P assumes its assets will shrink as it sells MSRs for additional liquidity to fund operations. -- Ultimately, S&P assumes the company will breach the advance rates on its secured funding facilities, leading to covenant violations. This would activate cross-acceleration provisions, allowing unsecured creditors to submit a claim for excess collateral after selling MSR assets pledged as collateral for priority claims. -- In a default scenario S&P thinks creditors would liquidate the company's assets. The challenge of selling assets when the company is distressed incurs an additional realization factor, or discount. Simulated default assumptions -- High delinquency rates leading to depressed MSR valuations. -- A sustained period of rapid amortization of MSRs with limited ability to refinance the repayments. -- Limited new originations, an increase in borrower delinquencies, and increase in the discount rate to value MSRs. Simplified waterfall -- Net enterprise value (after 5% administrative costs): $6.88 billion -- Collateral value available to secured debt: $6.86 billion. -- Total first-lien debt at default: $4.67 billion -- Collateral value available to senior unsecured note claims: $2.19 billion -- Total unsecured debt at default: $4.92 billion -- Recovery expectations: 40% ('4') Note: All debt amounts include six months of prepetition interest. FREEPORT LNG: Moody's Affirms 'B3' CFR & Alters Outlook to Positive ------------------------------------------------------------------- Moody's Ratings affirmed ratings of Freeport LNG Investments, LLLP (FLNGI), including its B3 Corporate family rating, B3-PD probability of default rating and B3 backed senior secured rating assigned to its term loan B. The outlook on all ratings is changed to positive from stable. RATINGS RATIONALE The change of the outlook to positive reflects Moody's expectation that the company will maintain steady operations and cash flow generation and will continue to improve its leverage profile and interest coverage, while also taking proactive steps to address its refinancing requirements. The B3 CFR reflects the on-going improvement in the financial position of the company. Distributions from the operating subsidiaries to FLNGI resumed in April 2024 and by October 2024 distributions were more than sufficient to fully cover debt service marking the end of the extended cash flow interruption caused by the industrial accident in June 2022. During the interruption FLNGI's financial profile was supported by the majority shareholder, including prompt cash contributions, in the form of subordinated shareholder loans, that enabled covenant compliance and debt service by FLNGI. FLNGI's cash flows and debt capacity are supported by the predictable and recurring nature of the long-dated, contractually derived cash flow generated by its operating companies and distributed to FLNGI through intermediate holding companies. FLNGI and its principal owner maintain effective controlling rights over the group's distributions, entire operations and strategic development. FLNGI's ratings are constrained by the high absolute level of indebtedness maintained by the group. The stability and magnitude of FLNGI's cash flow stream is also tempered by the high extent to which FLNGI's debt is structurally subordinated to substantial debt raised at intermediate holding company FLEX-IH and project debt that the group's LNG operating companies raised earlier to finance construction of the three principal operating assets. While FLNGI retains strong governance control, Moody's note risks associated with concentrated ownership, as well as financial risks associated with more complex capital structures and the presence of significant minority shareholders in operating companies. Finally, Moody's note FLNGI's high degree of tolerance for debt and leverage. FLNGI liquidity is adequate. Moody's expect that distributions from the operating subsidiaries will be sufficient to cover debt service payments and maintain compliance with the DSCR coverage requirements through mid-2026. FLNGI's term loan A (unrated) matures in December 2026. Some of the shareholder loans mature in 2025, which Moody's expect the company to repay or refinance with its principal shareholder as determined by available cash flow. FLNGI's senior secured term loan B is rated B3, at the same level as the B3 Corporate Family Rating (CFR), given the senior secured term loans predominant position in FLNGI's capital structure. The term loan B ranks pari passu with the term loan A, with both benefitting from the security package that includes the first-lien pledge of the ownership interests in Freeport LNG Development, L.P. ("FLNG"). The company also have shareholder loans that are subordinated to the senior secured term loans. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings may be upgraded if FLNGI's stand-alone liquidity position improves, including proactive management of maturities, and leverage metrics continue to improve, including that stand-alone EBITDA/interest is maintained above 2x. A weakening of liquidity or another prolonged disruption of operations could lead to the downgrade of the ratings. Freeport LNG Investments, LLLP (FLNGI) is a limited liability limited partnership that holds 55.35% interest in Freeport LNG Development, L.P. Additionally, FLNGI Option Holdco, LLC (FLNGI Option) owns an additional 8.11% interest in FLNG. FLNGI and FLNGI Option are ultimately owned by Mr. Michael Smith, the founder and the beneficial controlling shareholder of the group. FLNG holds through its 100% subsidiary FLEX Intermediate Holdco, LLC (FLEX IH) interests in the three operating LNG facilities, including 50% interest in FLNG Liquefaction 1, LLC (FLIQ1), 42% interest in FLNG Liquefaction 2, LLC (FLIQ2) and 100% interest in FLNG Liquefaction 3, LLC (FLIQ3). All three trains operate under long term use-or-pay tolling contracts and have capacity of over 5 MTPA per train. The principal methodology used in these ratings was Midstream Energy published in February 2022. G FAB: Gets Final OK to Use $1.28-Mil. in Cash Collateral --------------------------------------------------------- G Fab, Inc. received final approval from the U.S. Bankruptcy Court for the District of Oregon to use cash collateral. The final order authorized the company to use up to $1,280,151.50 in cash collateral for the period from Jan. 16 to July 31 to pay the expenses set forth in its budget, with a 10% variance. Secured creditors JPMorgan Chase Bank, N.A. and Kapitas, LLC were granted a replacement lien on all property acquired by G Fab as protection for the use of their cash collateral. As additional protection, Kapitus will receive a monthly payment of $2,500. About G Fab Inc. G Fab Inc. is a specialty contractor that serves the White City, Oregon area and specializes in structural steel. G Fab sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Or. Case No. 24-62739) on December 12, 2024, with $1 million to $10 million in both assets and liabilities. Tracey Glenn, resident of G Fab, signed the petition. Judge Thomas M. Renn handles the case. The Debtor is represented by: Keith Y Boyd, Esq. Keith Y Boyd, PC 724 S Central Ave 106 Medford, OR 97501 Tel: (541) 973-2422 Email: keith@boydlegal.net GIRARDI & KEESE: Trustee Sues DiNardo, Law Firm for Fee Fraud ------------------------------------------------------------- Randi Love of Bloomberg Law reports that the bankruptcy trustee for Girardi & Keese has filed a lawsuit against Joseph DiNardo and his law firm, seeking to prevent the discharge of a $7.5 million fraud-related claim. According to the report, the lawsuit was filed in DiNardo's own bankruptcy case, initiated in 2023 after two litigation lenders reportedly linked to him avoided a lawsuit accusing them of assisting convicted ex-lawyer Thomas Girardi in fraudulent activities. In a complaint filed in the U.S. Bankruptcy Court for the Western District of New York, the trustee argued that the fraud-aiding claim against DiNardo and his firm cannot be discharged through bankruptcy. Chapter 7 trustee Elissa D. Miller, responsible for winding down Girardi Keese's estate, filed the suit as part of her broader effort to resolve ongoing litigation and recover funds tied to Girardi's misappropriation of client money. She opposed DiNardo's attempt to discharge her claim, which includes $6.35 million in co-counsel fees his firm allegedly received from a personal injury settlement without the family's knowledge. According to the complaint, DiNardo and his firm "aided and abetted Girardi's criminal enterprise." The lawsuit details how they allegedly received half of the fees Girardi Keese obtained for representing the Ruigomez family in a lawsuit over a 2010 gas explosion, despite not billing any hours on the case. The complaint further alleges that DiNardo's assistance allowed Girardi Keese to continue handling plaintiff cases, ultimately enabling Girardi to misappropriate settlement funds for personal gain or to repay clients whose funds had already been stolen. DiNardo also became involved in litigation related to the families of victims killed in the 2018 Lion Air crash, where more than $2 million in settlement funds were misappropriated by Girardi and his firm. DiNardo was identified as an "investigative target" in that case, but his bankruptcy filing put a hold on proceedings against him. Girardi was convicted on four counts of wire fraud in August in the U.S. District Court for the Central District of California. Meanwhile, his estranged wife, Erika Girardi, successfully argued before the California Court of Appeal's Second District last month that she was unaware of his misconduct. Additionally, former Girardi Keese CFO Christopher Kamon agreed to plead guilty in October to assisting Girardi in embezzling client and firm funds. He is currently in plea negotiations in Illinois for other pending charges. The trustee is represented by Jenkins, Mulligan & Gabriel LLP and Gleichenhaus, Marchese & Weishaar PC. DiNardo and his firm are represented by Lippes Mathias LLP. The case is In re: Joseph DiNardo, Bankr. W.D.N.Y., No. 23-bk-10316, complaint 2/3/25. About Girardi & Keese Girardi and Keese or Girardi & Keese was a Los Angeles-based law firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It served clients in California in a variety of legal areas. It was known for representing plaintiffs against major corporations. An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No. 20-21022) was filed in December 2020 against GIRARDI & KEESE by alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian, Erika Saldana, Virginia Antonio, and Kimberly Archie. The petitioners' attorneys is Andrew Goodman, at Goodman Law Offices, Apc. Elissa D. Miller, a member of the firm SulmeyerKupetz, has been appointed as Chapter 7 trustee for GIRARDI KEESE. About DiNardo Law Firm DiNardo Law Firm, PC filed Chapter 11 petition (Bankr. W.D.N.Y. Case No. 23-10865) on Sept. 8, 2023, with $1 million to $10 million in assets and $10 million to $50 million in liabilities. Joseph DiNardo, sole shareholder, signed the petition. The Debtor tapped Daniel F. Brown, Esq., at Lippes Mathias LLP as legal counsel and Dansa D'Arata & Soucia, LLP as accountant. The Debtor tapped Hamrick & Evans LLP as its local counsel. About Thomas Vincent Girardi An involuntary Chapter 7 petition was also filed against Thomas Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7 trustee is Jason M. Rund, Esq. GRISWOLD ENTERPRISES: Case Summary & 10 Unsecured Creditors ----------------------------------------------------------- Debtor: Griswold Enterprises, L.L.C. d/b/a Double Dave Pizzaworks 7312 Louetta Rd. Spring TX 77379 Business Description: Founded in 2020, the Debtor runs a Double Dave's Pizzaworks franchise at 7312 Louetta Road, Spring, Texas 77379. The business serves a variety of hand-crafted pizzas, pepperoni rolls, strombolis, salads, and desserts. Chapter 11 Petition Date: February 4, 2025 Court: United States Bankruptcy Court Southern District of Texas Case No.: 25-30707 Debtor's Counsel: Brandon Tittle, Esq. TITTLE LAW GROUP, PLLC 1125 Legacy Dr., Ste. 230 Frisco TX 75034 Tel: 972-213-2316 Email: btittle@tittlelawgroup.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Erin Macmillan Griswold as member. A copy of the Debtor's list of 10 unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/KFYZBYQ/Griswold_Enterprises_LLC_dba_Double__txsbke-25-30707__0002.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/AD7OS7I/Griswold_Enterprises_LLC_dba_Double__txsbke-25-30707__0001.0.pdf?mcid=tGE4TAMA HALO ESTATES: Seeks Cash Collateral Access Until April 30 --------------------------------------------------------- Halo Estates, LLC asked the U.S. Bankruptcy Court for the Central District of California, San Fernando Valley Division, for authority to use cash collateral from Jan. 1 to April 30. The Debtor requires the use of cash collateral to pay ongoing necessary expenses. Wilmington Trust, National Association, as trustee for the registered holders of J.P. Morgan Chase Commercial Mortgage Securities Corp., Multifamily Mortgage Pass-Through Certificates, Series 2020-SB77, asserts an interest in the Debtor's cash collateral. The creditor holds a first-priority lien and assignment of rents on a loan of $1.056 million, as outlined in the Loan Agreement and Note, both dated March 19, 2020. The loan is secured by a Deed of Trust on the property at 521 South Breed Street, Los Angeles, Calif. The creditor is the current lender, payee, and beneficiary under these documents, which include all related paperwork for the loan. As adequate protection, the Debtor will pay the creditor the amount of $6,291 each, which equals to a contractual regular monthly payment under the Note of $5,127 plus 1/12 of the applicable annual property tax of $723 ($8,682.33/12) plus $4408 in partial default rate of interest, for the three-month period, payable on the first day of the month, but not later than by the fifteenth day of the month, starting with the February 1, 2025. The creditor is granted a replacement lien in and on all of the post-petition cash collateral set forth in the UCC Financing Statement, if any, for the benefit of the creditor and any and all proceeds therefrom, to the same extent, validity, and priority as any lien held by creditor as of the petition date, to the extent of any reduction in the value of such cash collateral actually used by the Debtor. The COVID-19 moratorium on rent enforcement and evictions, implemented by the city and state, made it difficult for the Debtor to meet financial obligations to the creditor. By April 2024, the Debtor was about three months behind on the mortgage. Despite the Debtor's requests for help or alternative solutions, the creditor issued a Notice of Default and Notice of Trustee Sale, disregarding the challenges small property owners face. The Debtor was able to make partial payments to reinstate the loan, but the creditor continued with foreclosure efforts, accumulating fees. As a result, the first bankruptcy case was filed to prevent foreclosure and propose a plan to address arrears. The first case was dismissed, and this case was filed to allow the Debtor to determine the creditor's claim and negotiate fair repayment terms. Wilmington Trust is represented by: Amir Gamliel, Bar No. 268121 AGamliel@perkinscoie.com Perkins Coie, LLP 1888 Century Park East, Suite 1700 Los Angeles, CA 90067 Telephone: 310.788.9900 Facsimile: 310.788.3399 About Halo Estates LLC Halo Estates LLC is a Los Angeles-based real estate company. Halo Estates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-10025) on January 7, 2025, listing up to $50,000 in both assets and liabilities. Judge Martin R. Barash handles the case. Alla Tenina, Esq., represents the Debtor as legal counsel. HONDUCRETE REDI: Seeks Chapter 11 Bankruptcy Protection in Texas ---------------------------------------------------------------- On January 31, 2025, Honducrete Redi Mix Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Honducrete Redi Mix Inc. Honducrete Redi Mix Inc. operates as a ready mix concrete provider. Honducrete Redi Mix Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-30372) on January 31, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Stacey G. Jernigan handles the case. The Debtor is represented by: Robert T DeMarco, Esq. DEMARCO MITCHELL, PLLC 12770 Coit Road, Suite 850 Dallas TX 75251 Tel: (972) 991-5591 E-mail: robert@demarcomitchell.com HOUZE AMERICA: Sec. 341(a) Meeting of Creditors on March 3 ---------------------------------------------------------- On January 29, 2025, Houze America Management LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Georgia. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on March 3, 2025 at 10:00 AM via Telephone conference. To attend, Dial 888-902-9750 and enter participation code 9635734. About Houze America Management LLC Houze America Management LLC is a property management services company based in Union City, Georgia. Houze America Management LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50936) on January 29, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. JACKSON HOSPITAL: Case Summary & 30 Largest Unsecured Creditors --------------------------------------------------------------- Two affiliates that simultaneously filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Jackson Hospital & Clinic Inc. (Lead Case) 25-30256 1725 Pine Street Montgomery, AL 36106 JHC Pharmacy, LLC 25-30257 d/b/a Jackson Apothecary d/b/a Jackson Apothecary Main d/b/a Jackson Apothecary-Prattville 1758 Park Place Montgomery, AL 36106 Business Description: Jackson Hospital & Clinic, Inc. ("JHC") is a non-membership, non-profit corporation based in Alabama. JHC is the direct or indirect parent company of JHC Pharmacy LLC ("JHP"), an Alabama limited liability company that provides pharmacy services to JHC patients. JHC owns 100% of JHP. Additionally, JHC is a direct or indirect parent company of certain other entities that have not filed for bankruptcy. JHC is a 344-bed healthcare facility in Montgomery, Alabama, with a rich history dating back to 1894. Since its official opening in 1946, JHC has grown into one of the largest hospitals in Alabama, offering specialized services in cardiac care, cancer treatment, neurosciences, orthopedics, women's care, and emergency services. JHC's service area includes 16 counties across central Alabama. Chapter 11 Petition Date: February 3, 2025 Court: United States Bankruptcy Court Middle District of Alabama Judge: Hon. Christopher L Hawkins Debtors' General Bankruptcy Counsel: Derek F. Meek, Esq. Marc P. Solomon, Esq. James P. Roberts, Esq. Andrew P. Cicero, III, Esq. Catherine T. Via, Esq. BURR & FORMAN LLP 420 20th Street North, Suite 3400 Birmingham, Alabama 35203 Tel: (205) 251-3000 E-mail: dmeek@burr.com msolomon@burr.com jroberts@burr.com acicero@burr.com cvia@burr.com Debtors' Special Corporate & Health Care Regulatory Counsel: GILPIN GIVHAN, PC Debtors' Conflicts Counsel: MEMORY MEMORY & CAUSBY, LLP Debtors' Restructuring & Financial Advisor: EISNER ADVISORY GROUP LLC Debtors' Investment Banker: SSG CAPITAL ADIVSORS, LLC Debtors' Notice, Claims & Balloting Agent: OMNI AGENT SOLUTIONS, INC. Estimated Assets: $100 million to $500 million Estimated Liabilities: $100 million to $500 million The petitions were signed by Allen Wilen as chief restructuring officer. Full-text copies of the petitions are available for free on PacerMonitor at: https://www.pacermonitor.com/view/54H3NEQ/Jackson_Hospital__Clinic_Inc__almbke-25-30256__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/NP7CGJY/JHC_Pharmacy_LLC__almbke-25-30257__0001.0.pdf?mcid=tGE4TAMA Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Capta Health Partners, LLC $28,000,000 8745 W Higgins Rd, Suite 110 Chicago, IL, 60631 Jason Lerch Email: JLerch@captahp.com 2. Jackson Nurse $9,739,653 Professionals LLC 3452 Lake Lynda Drive, Suite 200 Orlando, FL 32817 Alyssa Rose Email: arose@jacksonnursing.com 3. Jackson Imaging Center LLC $6,220,110 Attn: Jim Stroud 1825 Park Place Montgomery, AL 36106 Jim Stroud Email: jimstroud@jackson.org 4. Jackson Surgery Center $4,497,174 1725 Park Place, Montgomery, AL 36106 Missy Sallas Email: Missy.salas@jackson.org 5. Alabama Power Company $2,852,500 ACCT 51553-51031 PO Box 242 Birmingham, AL 35292 Sherri S. Bunting Email: ssbunt@southernco.com 6. Gallagher Benefit Services $1,685,489 PO Box 560812 Denver, CO 80256-0812 Joy Swenson Email: Joy_Swenson@ajg.com 7. Medtronic USA $1,665,577 PO Box 409201 Atlanta, GA 30384-9201 Angie Hill Email: angie.hill@medtronic.com 8. Sodexo $1,498,031 PO Box 360170 Pittsburgh, PA 15251-6170 David Healy Email: David.Healy@sodexo.com 9. Select Medical Corp $1,395,402 4714 Gettysburg Rd Mechanicsburg, PA 17055 Ruth Powell Email: RCPowell@selectmedical.com 10. Medline Industries $1,145,619 Dept CH 14400 Palatine, IL 60055-4400 Evia Ruvalcabe Email: eruvalcaba@medline.com 11. JMS (Sleep Lab) $1,136,003 PO Box 689 Jasper, Al 35502-0689 Ladel Redinger Email: lredinger@medsouthinc.net 12. Regions Bank 2006 Bond $1,090,546 1900 5th Ave North, 26th Floor Birmingham, AL 35203 Lisa Dark Email: Lisa.Dark@regions.com 13. St Jude Medical $852,387 22400 Network Place Chicago, IL 60673-1224 Sameer Saxena Email: sameer.saxena@abbott.com 14. Philips Healthcare $802,805 PO Box 100355 Atlanta, GA 30384-0355 Melvin Wright Email: melvin.wright@philips.com 15. Siemens Medical Solutions $778,922 PO Box 121102 Dallas, TX 75312-1102 Diane Girard Email: diane.girard@siemens- healthlineers.com 16. Depuy Synthes $737,485 PO Box 406663 Atlanta, GA 30384-6663 Editha Legaspi Email: elegasp@ITS>JNJ.com 17. Globus Medical Inc. $736,369 PO Box 843239 Dallas, TX 75284-3239 Kelly Capogreco Email: kcapogreco@globusmedical.com 18. Altera Digital Health $693,205 PO Box 735183 Chicago, IL 60673-5183 Cydni Long Email: cydni.long@alterahealth.com 19. Penumbra Inc. $652,812 PO Box 101836 Pasadena, CA 91189-1836 Guy Hulsenberg Email: ghulsenberg@penumbrainc.com 20. Intuitive Surgical Inc. $591,931 PO Box 883629 Los Angeles, AC 90088 Nicole Campbell Email: Nicole.Campbell@intuitive.com 21. Omnicell (Formally PSG) $568,414 PO Box 201122 Dallas, TX 75320-1122 Korin Lukau Email: korin.lukau@omnicell.com 22. Boston Scientific $511,272 PO Box 951653 Dallas, TX 75395-1653 Ann Cosetta Email: ann.cosetta@bsci.com 23. Progressive Perfusion Inc. $474,895 2257 Halcyon Blvd. Montgomery, AL 36117 Will Zukowski Email: progressiveperfusion@gmail.com 24. Stericycle $466,639 28883 Network Place Chicago, IL 60673-1288 Jennifer Burks Email: JBurks@stericye.com Jessica Woods Email: JessicaWoods@stericycle.com 25. AllScripts LLC $463,005 24630 Network Place Chicago, IL 6067-32146 Cydni Long Email: cydni.long@alterahealth.com 26. Southeast Apothecary (E-P) $414,965 2032 Poplar Street Montgomery, AL 36106 Stacy Long Email: seamain@live.com 27. Stryker Sales $410,405 22491 Network Place Chicago, IL 60673 Maria Seas Email: maria.seas@stryker.com 28. First Insurance Funding $409,175 450 Skokie Blvd, Ste 1000 Northbrook, IL 60062-7917 Emily Maddox Email: Emily.Maddox@gomedassit.com 29. Premier Imaging Medical $409,007 Systems, LLC 201 Industrial Drive Suite A Franklin, OH 45005 Tammy D'Allura Email: tdallura@tbsmes.com 30. Spire $391,376 ACCT #0311762222 PO Box 2224 Birmingham, AL 35246-0022 Lakessia Willis Email: Lakessia.Willis@spire.com JACOBS ENTERTAINMENT: S&P Lowers ICR to 'B-', Outlook Stable ------------------------------------------------------------ S&P Global Ratings lowered its issuer credit rating on gaming operator Jacobs Entertainment Inc. to 'B-' from 'B'. S&P said, "At the same time, we lowered our issue-level rating on the company's $600 million of senior unsecured notes due 2029 to 'B-' from 'B', in line with the issuer credit rating downgrade. The stable outlook reflects our expectation that Jacobs will continue to generate sufficient operating cash flow to use along with excess cash on its balance sheet to fund planned capital expenditure (capex) and modest distributions despite its high leverage. We expect S&P Global Ratings adjusted leverage to improve to 6.7x by the end of 2025 from an estimated 7.1x at the end of 2024. "Jacobs' 2024 operating performance was below our prior forecast, and we expect S&P Global Ratings-adjusted debt leverage to remain above 6.5x through 2025. This stems from weaker operating performance in the first nine months of 2024 and a downward revision to our adjusted EBITDA for 2024 and 2025. Soft performance in its Colorado market and a slower-than-expected ramp up at J Resort resulted in EBITDA well below our previous forecast. Higher labor and marketing expenses also pressured adjusted EBITDA given our assumption of flat revenue growth in 2024, excluding fuel sales. "EBITDA margin for the 12 months ended Sept. 30, 2024, was about 20% compared to around 22% for the same comparable period last year. We expect 2024 S&P Global Ratings-adjusted leverage of 7.1x, which is above our 6.5x downgrade threshold. Our 2024 adjusted EBITDA also includes the negative impact of a potential $5 million U.S. Internal Revenue Service (IRS) penalty after the company discovered it failed to submit a subset of player data to the IRS. The one-time IRS potential penalty charge of $5 million added 0.3x to debt leverage, although there is no impact to cash flow yet and the penalty could be reduced. The charge does not affect our 2025 EBITDA forecast. "While we forecast leverage will improve in 2025 in part due to the one-time nature of the potential IRS penalty charge, we expect some softness in operating performance will persist and that ramp up of J Resort's redevelopment will remain slow. As a result, we expect leverage will improve to 6.7x but remain above our 6.5x threshold. "We expect Jacobs' liquidity will remain adequate in 2025. As of Sept. 30, 2024, Jacobs' balance sheet cash of $51 million, in addition to our expectation of around $45 million of annual operating cash flow, is sufficient to fund its capex of about $48 million in 2025, including about $30 million of development spending. "In November 2024, Jacobs amended its senior secured revolving credit facility to widen its debt leverage covenant. To secure the amendment, Jacobs agreed with its lenders to reduce the size of the revolver to $20 million from $80 million. Still, Jacobs had minimal cushion under its debt leverage covenant as of Sept. 30, 2024, which we believe will improve over the next few quarters. "We project that Jacobs will have revolver availability of at least $16 million over the next few quarters. Jacobs' predominantly fixed-rate capital structure supports operating cash flow and good EBITDA coverage of interest. The company also does not face any near-term maturities as its undrawn revolver does not mature until February 2027 and its notes in February 2029. "We believe EBITDA at J Resort will improve in 2025 due to cost reductions as visitation improves following slower-than-anticipated redevelopment. J Resort completed the first phase of its remodeling project in 2023 and is currently in the second phase to expand the casino and add additional resort amenities. The $130 million first phase included a completely remodeled casino (including over 600 new gaming positions), renovated hotel rooms, surface parking spaces, and new food and beverage outlets. The $120 million second phase development includes an expanded casino to accommodate the number of hotel rooms, another food and beverage offering, and additional resort amenities. "While we had previously expected J Resort to generate incremental cash flow in 2025, we now expect that J Resort will likely not turn profitable until 2026 at the earliest. Although we assume these projects will increase visitation at both of its Reno properties, Jacobs has faced challenges in repositioning J Resort as a higher quality property, and it may take longer until it fully realizes the benefits from the redevelopment." Improvements to the quality of its casinos and their surrounding neighborhoods should help Jacobs better capitalize on Reno's increased gaming revenue, which has benefited from the city's steady population increases and investments in the area to support job creation. Still, S&P assumes the company's casinos remain second-tier properties in the highly competitive Reno market with three Caesars Entertainment Inc.-owned properties. Caesars has greater resources for marketing. S&P said, "We expect its Colorado and Louisiana properties will continue to be the leading contributors to its cash flow. We assume the performance of Jacobs' Black Hawk, Colo., properties, which account for about 40% of its property-level EBITDA, remain largely stable over time. We do not anticipate further changes in their operating environment following a gaming and amenity expansion at the competing Monarch Casino Resort. Further, we believe gross gaming revenue in Black Hawk will remain above pre-pandemic levels. This follows the mid-2021 implementation of Colorado's Amendment 77, which removed the $100 bet limit and permitted a greater variety of games in the market. "However, gaming demand at its Colorado properties has been soft hurting EBITDA in 2024 and we expect the operating environment to remain lackluster in 2025. Likewise. Jacobs' Louisiana properties EBITDA experienced a modest decline in 2024 because of lower slot coin-in and hold, which was in part attributable to adverse first quarter weather. "Regardless, we expect Louisiana to remain a large contributor. Jacobs has a leading position in the Louisiana truck stop market, which benefits from some barriers to entry given the limitations to eligible locations. "The stable outlook reflects our expectation that Jacobs will continue to generate significant operating cash flow that it can use along with excess cash on its balance sheet to fund planned capex and modest distributions despite its high leverage. We expect S&P Global Ratings-adjusted leverage to improve to 6.7x by the end of 2025 from an estimated 7.1x at the end of 2024. "While unlikely in our forecast period, we could lower the rating on Jacobs if we believe its capital structure is unsustainable because of an increase in leverage or liquidity shortfalls. This could occur if an economic downturn cuts consumer discretionary spending or competitive pressure increases. "We could raise our rating on Jacobs if we expect it to sustain S&P Global Ratings-adjusted EBITDA interest coverage above 2x and debt leverage below 6.5x, incorporating some cushion for operating volatility." JEA2 LLC: Seeks to Use Cash Collateral -------------------------------------- JEA2, LLC asked the U.S. Bankruptcy Court for the Eastern District of California, Modesto Division, for authority to use cash collateral. The cash collateral consists of rents collected from the company's 154.59-acre undeveloped real property in Stanislaus County, Calif. The company requires the need to use cash collateral to pay expenses incurred in connection with the Real Property and the operation of its business and administration of the chapter 11 case. JEA2 leases the real property under the terms of the written lease dated June 13, 2023 between the company as lessor and Tom and Matt Maring/T&M Farms as lessee. T&M conducts farming operations on the Real Property. The term of the lease runs through November 15, 2025. In December 2024, T&M made a second and final annual payment of rent to the company under the lease. The payment was in the amount of $50,472.85, and the company deposited that payment into its debtor-in-possession bank account, where it remains. SBN V Ag I, LLC asserts an interest in the funds in the DIP Account, as its cash collateral. This interest is claimed under the terms of a Deed of Trust With Assignment of Rents executed by JEA2 and recorded by Summit in connection with a pre-bankruptcy loan. To the extent Summit obtains a replacement lien in post-petition rents, its interest is adequately protected, particularly in light of the significant equity in the Real Property protecting Summit's interest. About JEA2 LLC JEA2, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. Case 24-90615) on October 17, 2024. In the petition signed by Jeffrey Arambel, managing member, the Debtor disclosed up to $50 million in both assets and liabilities. Judge Ronald H. Sargis oversees the case. Anthony Asebedo, Esq., at Reynolds Law, LLP, represents the Debtor as legal counsel. JORDAN HEALTH: Seeks to Extend Plan Exclusivity to June 4 --------------------------------------------------------- Jordan Health Products I, Inc. and its 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 June 4 and August 4, 2025, respectively. The Debtors submit that sufficient cause exists to extend the Exclusive Periods pursuant to Bankruptcy Code section 1121(d) based on the following: * The necessity of sufficient time to permit the negotiation of a plan of liquidation. The Debtors have not made any prior requests for the extension of the Exclusive Periods, and only seek a 120-day extension through this Motion. The Debtors and their professionals have expended significant efforts to sufficiently market the Debtors' assets for sale, conducted a successful sale process, have obtained approval of and closed two separate sales. The Debtors require additional time to determine if a chapter 11 plan is feasible under the circumstances. * The Debtors have made good faith progress toward exiting Chapter 11. Since the Petition Date, the Debtors have made substantial and meaningful progress under chapter 11, including: (a) soliciting bids for their assets, and (b) obtaining Court approval of and closing two sales within the first five months of these Chapter 11 Cases; and (c) administering these Chapter 11 Cases efficiently, economically, and cooperatively with numerous parties in interest. The Debtors intend to maintain their momentum to ensure a swift exit from these Chapter 11 Cases. * The Debtors are paying their bills as they become due. Since the Petition Date, the Debtors have paid their vendors and creditors in the ordinary course of business or as otherwise authorized pursuant to orders of the Court. * The Debtors have reasonable prospects for filing a viable plan. The the Debtors' aim in commencing these Chapter 11 Cases was to sell their assets pursuant to section 363 of the Bankruptcy Code for the best possible price. With both the MedSurge Division and remaining asset sales closed, the Debtors will use the available time under the TSA to determine if a chapter 11 plan is feasible under the circumstances. * The Debtors are not seeking to extend the Exclusive Periods as a means to pressure creditors to submit to the Debtors' reorganization demands. The Debtors are not seeking to extend the Exclusive Periods to pressure or prejudice any of their creditors: they are requesting the extension to comply with the TSA and allow them sufficient time to determine if a liquidation plan is feasible. The Debtors are engaged in discussions with the Committee regarding the filing of a consensual liquidation plan. The Stalking Horse Bidder is fully supportive of the extension of the Exclusive Periods given the pendency of the TSA. * Unresolved contingencies exist. Although the Debtors have made significant progress in these Chapter 11 Cases thus far, significant, unresolved contingencies exist, including, but not limited to, resolving outstanding sales tax liabilities with the affected states and adhering to the terms of the TSA. Counsel to the Debtors: Christopher A. Ward, Esq. Shanti M. Katona, Esq. Katherine M. Devanney, Esq. Michael V. DiPietro, Esq. POLSINELLI PC 222 Delaware Avenue, Suite 1101 Wilmington, Delaware 19801 Tel: (302) 252-0920 Fax: (302) 252-0921 Email: cward@polsinelli.com skatona@polsinelli.com kdevanney@polsinelli.com mdipietro@polsinelli.com - and - Ashley D. Champion, Esq. POLSINELLI PC 1201 W. Peachtree St. NW, Suite 1100 Atlanta, Georgia 30309 Tel: (404) 253-6000 Fax: (404) 252-6060 Email: achampion@polsinelli.com About Jordan Health Products Jordan Health Products I, Inc., doing business as Avante Health Solutions, is a provider of medical equipment solutions, selling new and refurbished equipment, parts, service, support, and training to healthcare facilities worldwide. Several Avante businesses act as independent service organizations ("ISO") for various medical facilities to provide maintenance and support services for equipment manufactured and produced by other companies (known as original equipment manufacturers, or "OEMs"). Jordan Health Products I, Inc. and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12271) on Oct. 8, 2024. In the petitions signed by Rob Hubbard, chief restructuring officer, the Debtors disclosed up to $100 million in estimated assets and up to $500 million in estimated liabilities. The Debtors tapped Polsinelli PC as counsel, Riveron Management Services, LLC as restructuring advisor, and Livingstone Partners LLC as investment banker. Omni Agent Solutions, Inc., is the Debtors' notice, claims, and balloting agent. KOZUBA & SONS: Court to Hold Cash Collateral Hearing Today ---------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, is set to hold a hearing today, at 9:30 a.m., on the motion by Kozuba & Sons Distillery, Inc. to use cash collateral. The court previously extended the company's authority to use the cash collateral of its secured creditors. This interim authority expires on Feb. 6. The interim order issued by the court on Jan. 29 granted secured creditors post-petition liens on the cash collateral to the same extent and with the same validity and priority as their pre-bankruptcy liens. About Kozuba & Sons Distillery Kozuba & Sons Distillery, Inc., a company in Pinellas Park, Fla., filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01003) on February 28, 2024, with $1 million to $10 million in both assets and liabilities. Jakub Kozuba, vice president of Kozuba & Sons, signed the petition. Judge Roberta A. Colton presides over the case. The Debtor is represented by: Scott A. Stichter, Esq. Stichter, Riedel, Blain & Postler, P.A. Tel: 813-229-0144 Email: sstichter.ecf@srbp.com KYLE CHAPMAN: Unsecured Creditors Will Get 95% of Claims in Plan ---------------------------------------------------------------- Kyle Chapman Motor Sales, L.P. and affiliates filed with the U.S. Bankruptcy Court for the Western District of Texas a Disclosure Statement describing Plan of Reorganization dated January 25, 2025. The Debtors are Texas corporations that operate, collectively, as a "Buy Here, Pay Here" used car dealership with affiliated entities to collect on finance receivables (KCMS) or to serve as the landlord (Cavalier). The Debtors operate in Austin and Buda, Texas. Chapman Motors has operated since 1996, selling used automobiles while providing financing to the customers who may not otherwise be able to obtain financing through traditional lenders. KCMS Premier compliments the operations of Chapman Motors and serves, in part, as the financing entity that collects the finance receivables issued by the customers when they finance the purchase of the vehicles. Until 2023, Chapman Motors operated out of three locations. One in Austin off Airport Blvd., (the "Airport Blvd. Location"), the main location off of I-35 in Buda, Texas (the "Buda Location") and a previous location out of San Marcos, Texas (the "San Marcos Location"). After filing for bankruptcy protection, Debtors continued their normal operations at the Airport Blvd. Location and the Buda Location. Debtors have not liquidated assets outside of the ordinary course of business or had to take out postpetition financing to maintain ongoing operations. Class 5 consists of Allowed General Unsecured Claims. Class 5 Allowed General Unsecured Claims, including deficiency claims, shall receive a 95% distribution, which amount shall be paid in monthly payments beginning in Month 01 of the Plan and ending in Month 08 according to the projections listed in the Plan payments. The allowed unsecured claims total $157,488.03. Class 5 is impaired and entitled to vote. Class 7 consists of Allowed Equity Interests in the Debtors. The equity interest holders in the Debtors will retain their interests in the Reorganized Debtors. The Debtors' operations have become more streamlined while they have been in bankruptcy and paying down a considerable amount on the secured claims of Frost Bank (approximately $4.5 million). Paying $100,000 per week to Frost required the Debtors to operate on limited cash flow, which will improve under the terms of the proposed Plan. Between the net income generated from Debtors' operations, the anticipated expansion of business, the cash on hand, and the sale of an unencumbered asset, the Debtors will be able to fund the Plan. A full-text copy of the Disclosure Statement dated January 25, 2025 is available at https://urlcurt.com/u?l=dVY3iT from PacerMonitor.com at no charge. Counsel for the Debtors: Todd Headden, Esq. Charlie Shelton, Esq. HAYWARD PLLC 7600 Burnet Road, Suite 530 Austin, TX 78757 Phone: (737) 881-7100 Email: theadden@haywardfirm.com cshelton@haywardfirm.com About Kyle Chapman Motor Sales Kyle Chapman Motor Sales, L.P. is a family-owned and operated automobile dealer in Buda, Texas. Kyle filed Chapter 11 petition (Bankr. W.D. Tex. Case No. 24-10143) on Feb. 13, 2024, with $1 million to $10 million in both assets and liabilities. Todd Headden, Esq., at Hayward PLLC is the Debtor's legal counsel. LIBERATED BRANDS: Secures Court Okay to Tap $25MM Ch. 11 Financing ------------------------------------------------------------------ Emily Lever of Law360 reports that on February 4, 2025, a Delaware bankruptcy judge gave interim approval for outdoor and athletic apparel retailer Liberated Brands LLC to access $25 million of its $35 million debtor-in-possession financing. 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. LILLY INDUSTRIES: Case Summary & 10 Unsecured Creditors ------------------------------------------------------- Debtor: Lilly Industries, Inc. d/b/a The Slab Studio, LM 2121 S Anne St Santa Ana CA 92704 Business Description: Lilly Industries, Inc. (dba The Slab Studio) is a trade-only gallery that offers architects, contractors, dealers, and designers access to the finest natural stone and semi-precious slabs, ensuring a sophisticated, one-of-a-kind viewing experience. With discerning standards and a global reach, they act as a trusted partner for those seeking premium materials for high-end design projects. Chapter 11 Petition Date: February 3, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-10301 Judge: Hon. Theodor Albert Debtor's Counsel: Brian Rothschild, Esq. PARSONS BEHLE & LATIMER 201 South Main Street, Suite 1800 Salt Lake City, UT 84111 Tel: 801-532-1234 E-mail: BRothschild@parsonsbehle.com Total Assets: $698,536 Total Liabilities: $2,583,516 The petition was signed by Josiah Lilly as president. A copy of the Debtor's list of 10 unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/LGAAXBA/Lilly_Industries_Inc_dba_The_Slab__cacbke-25-10301__0002.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/KZJ4PXQ/Lilly_Industries_Inc_dba_The_Slab__cacbke-25-10301__0001.0.pdf?mcid=tGE4TAMA LITTLE MINT: Ward and Smith, 2 Others Appointed to Creditors' Panel ------------------------------------------------------------------- Judge Joseph Callaway of the U.S. Bankruptcy Court for the Eastern District of North Carolina ordered the appointment of three creditors to the official committee of unsecured creditors in the Chapter 11 case of The Little Mint, Inc. The unsecured creditors are: 1. Ward and Smith, P.A. c/o Paul A. Fanning, Esq. Post Office Box 8088 Greenville, NC 27835-8088 paf@wardandsmith.com 2. Performance Food Group, Inc. c/o David Easton* 12500 West Creek Pkwy Richmond, VA 23238 deaston@pfgc.com 3. SCF RC Funding IV, LLC c/o Nisha Patel 902 Carnegie Center Blvd, Suite 520 Princeton, NJ 08540 npatel@essentialproperties.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 The Little Mint Inc. The Little Mint, Inc. owns multiple Hwy 55 Burgers, Shakes & Fries restaurants. It conducts business under the name Hwy 55 Burgers Shakes & Fries and is based in Mount Olive, N.C. Little Mint sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-04510) on Dec. 31, 2024. In its petition, the Debtor reported assets between $1 million and $10 million and liabilities between $10 million and $50 million. Judge Joseph N. Callaway presides over the case. Rebecca F. Redwine, Esq., at Hendren, Redwine & Malone, PLLC, is the Debtor's legal counsel. LOS TRECE TEXAS: Continued Operations to Fund Plan Payments ----------------------------------------------------------- Los Trece Texas, LLC filed with the U.S. Bankruptcy Court for the Western District of Texas an Amended Plan of Reorganization under Subchapter V dated January 24, 2025. Los Trece Texas, LLC was incorporated as a Texas limited liability company on January 7, 2023. Its owners are Carrie Wells, Kacy Wells and Chris Chitsey. The Debtor purchased its property from Darren B. St. Ama and Jayne L. St. Ama who took back a note in the amount of $1,812,013.00 secured by a deed of trust. The property was also subject to a lien in favor of MC Bank in the amount of approximately $180,000.00. The Debtor purchased the property subject to such lien but did not assume the debt. On May 29, 2024, the Debtor sued the St. Amas for fraud in connection with the sale of the property. The Debtor obtained a temporary restraining order against the St. Amas to prevent a foreclosure sale scheduled for June 2024. The Debtor elected to file bankruptcy after the St. Amas posted the property for foreclosure in July 2024 and MCBank posted the property for foreclosure in August 2024. The Debtor obtained a temporary restraining order but was unable to post a bond in the amount of $2.5 million. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $$442,786. The final Plan payment is expected to be paid on December 15, 2029. This Plan of Reorganization proposes to pay creditors of the Debtor from revenues received from operating its business. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at undetermined cents on the dollar based on total unsecured claims of up to $1,802,092.72 and projected payments to unsecured creditors of up to $undetermined. Class 7 consists of Unsecured Creditors. The Class 7 creditors shall receive payment of the Debtor's Projected Disposable Income less payments to Administrative Creditors and claimants in Classes 1-6. This Class is impaired. Allowed administrative expenses shall be within fourteen days after entry of an order approving such amounts. If the Debtor does not have sufficient funds on hand to pay the Allowed administrative expenses, they shall be paid in the next regular distribution. The monies to fund the Plan shall consist of: (i) all monies held by the Debtor on the Effective Date; (ii) all monies earned by the Debtor over the life of the Plan. A full-text copy of the Amended Plan dated January 24, 2025 is available at https://urlcurt.com/u?l=78UObb from PacerMonitor.com at no charge. About Los Trece Texas, LLC Los Trece Texas LLC is a destination for events, weekly live music, food, and hand-crafted cocktails. Los Trece Texas LLC sought relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-10768) on July 1, 2024. In the petition signed by Carrie Wells, as manager, the Debtor estimated assets and liabilities between $1 million and $10 million. The Honorable Bankruptcy Judge Shad Robinson oversees 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 LOUISIANA APPLE: Seeks to Extend Plan Exclusivity to March 3 ------------------------------------------------------------ Louisiana Apple, LLC and its affiliates asked the U.S. Bankruptcy Court for the Western District of Louisiana to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to March 3 and May 5, 2025, respectively. The Debtors explain that their case, which involves multiple companies, has its share of complexities given the nature of the Debtors' assets and the claims at issue. The extension of the Exclusive Periods requested herein will enable the Debtors to prepare a viable Chapter 11 plan and present that plan to parties in interest after that date. The requested extension of the Exclusive Periods will permit the plan process to move forward in an orderly fashion and with better information for all stakeholders. The Debtors claim that termination of exclusivity could be very disruptive to the Debtors' efforts to develop a Chapter 11 plan. At this time, the Debtors are in the middle of dealing with discovery issues and a venue dispute. Moreover, if exclusivity terminates and competing Chapter 11 plans are filed, resources and energy will necessarily be diverted from negotiating a consensual Chapter 11 plan to prosecuting and defending competing Chapter 11 plans. The Debtors assert that the requested extensions of the Exclusive Periods will provide the Debtors and all other parties in interest an opportunity to develop fully the grounds upon which serious negotiations toward a Chapter 11 plan can be based. Terminating the Exclusive Periods before this process is complete, before discovery is completed, would defeat the purpose of Section 1121 of the Bankruptcy Code, to afford the Debtors a meaningful and reasonable opportunity to negotiate with creditors and propose and confirm a consensual Chapter 11 plan. Accordingly, the Debtors should be granted a full and fair opportunity to negotiate, propose and seek acceptance of a Chapter 11 plan. The Debtors believe that the requested extension of the Exclusive Periods is warranted and appropriate under the circumstances, particularly since the Motion is the Debtors’ first request for an extension. Further, the Debtors submit that the requested extension is reasonable and necessary, will not prejudice the legitimate interest of creditors and other parties in interest, and will afford the Debtors a meaningful opportunity to pursue a consensual plan, all as contemplated by Chapter 11 of the Bankruptcy Code. Counsel to the Debtors: H. Kent Aguillard, Esq. Caleb Kent Aguillard, Esq. Attorneys at Law 141 South Sixth Street Eunice, LA 70535 Ph: (337) 457-9331 Fx: (337) 457-2917 Email: kent@aguillardlaw.com caleb@aguillardlaw.com About Louisiana Apple, LLC Louisiana Apple, LLC filed Chapter 11 petition (Bankr. S.D. Fla. Case No. 24-20336) on October 4, 2024, with as much as $50,000 in both assets and liabilities. Judge Robert A. Mark oversees the case. Eyal Berger, Esq., at Akerman, LLP and Yip Associates serve as the Debtor's legal counsel and accountant, respectively. LUMIO HOLDINGS: Gets Ch. 11 Liquidation Approval after Asset Sale ----------------------------------------------------------------- Alex Wittenberg of Law360 reports that on February 3, 2025, a Delaware bankruptcy judge approved Lumio Holdings Inc.'s Chapter 11 liquidation plan after the solar panel provider finalized the sale of its business to Zeo Energy Corp. About Lumio Holdings Lumio Holdings, Inc., is a privately-held residential solar provider in Lehi, Utah, which is fully vertically integrated with a full suite of photovoltaic solar system sales, installation and operations. Lumio Holdings and Lumio HX, Inc. filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 24-11916) on Sept. 3, 2024. Jeffrey T. Varsalone, chief restructuring officer, signed the petitions. At the time of the filing, the Debtors reported $100 million to $500 million in both assets and liabilities. Judge J. Kate Stickles oversees the cases. The Debtors tapped Morris, Nichols, Arsht & Tunnell, LLP, Houlihan Lokey Capital, Inc. and C Street Advisory Group as legal counsel, investment Banker and strategic communications advisor, respectively. Stretto, Inc. is the claims and noticing agent and administrative advisor. LUTHERAN HOME: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Lead Debtor: Lutheran Home and Services for the Aged, Inc. d/b/a Lutheran Home 800 W. Oakton Arlington Heights IL 60004 Business Description: Lutheran Home is a non-profit, mission- driven community offering a range of services including assisted living, memory care, skilled nursing, and short-term rehabilitation, along with extensive outpatient rehabilitation therapy. Chapter 11 Petition Date: February 4, 2025 Court: United States Bankruptcy Court Northern District of Illinois Eight affiliates that simultaneously filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Lutheran Home and Services for the Aged, Inc. (Lead) 25-01705 dba Lutheran Home 800 W. Oakton Arlington Heights IL 60004 Luther Oaks, Inc. 25-01706 dba Luther Oaks 601 Lutz Road Bloomington IL 61704 Lutheran Home for the Aged, Inc. 25-01707 dba Lutheran Home 800 W. Oakton Arlington Heights IL 60004 Pleasant View Luther Home, Inc. 25-01708 dba Pleasant View 505 College Ave. Ottawa IL 61350 Lutheran Life Communities 25-01709 800 West Oakton Street Arlington Heights IL 60004 Lutheran Life Communities Foundation 25-01710 800 W. Oakton Street Arlington Heights IL 60004 Wittenberg Lutheran Village, Inc. 25-01711 dba Wittenberg Village 1175 E. Luther Drive Crown Point IN 46307 Wittenberg Lutheran Village Endowment Corporation 25-01712 1150 E. Luther Drive Crown Point IN 46307 Debtors' Bankruptcy & Restructuring Counsel: Stephen D. Lerner, Esq. SQUIRE PATTON BOGGS (US) LLP 201 E. Fourth St., Suite 1900 Cincinnati, OH 45202 Tel: (513) 361-1200 Fax: (513) 361-1201 Email: stephen.lerner@squirepb.com - and - Jeffrey R. Rothleder, Esq. 2550 M Street, NW Washington, DC 20037 Tel: (202) 457-6000 Fax: (202) 457-6315 Email: jeffrey.rothleder@squirepb.com - and - Maura P. McIntyre, Esq. 1000 Key Tower 127 Public Square Cleveland, OH 44114 Tel: (216) 479-8715 Fax: (216) 479-8780 Email: maura.mcintyre@squirepb.com Debtors' Illinois Bankruptcy Counsel: David A. Agay, Esq. Marc Carmel, Esq. Nicholas M. Miller, Esq. Maria G. Carr, Esq. Ashley Jericho, Esq. MCDONALD HOPKINS LLC 300 North LaSalle Street, Suite 1400 Chicago, Illinois 60654 Tel: (312) 280-0111 Email: dagay@mcdonaldhopkins.com mcarmel@mcdonaldhopkins.com nmiller@mcdonaldhopkins.com mcarr@mcdonaldhopkins.com ajericho@mcdonaldhopkins.com Debtors' Financial Advisor: ONEPOINT PARTNERS, LLC Debtors' Claims, Noticing, Solicitation, Balloting, and Tabulation Agent: STRETTO Lutheran Home's Estimated Assets: $100 million to $500 million Lutheran Home's Estimated Liabilities: $100 million to $500 million The petitions were signed by Amy LaCroix as secretary. Full-text copies of five of the Debtors' petitions are available for free on PacerMonitor at: https://www.pacermonitor.com/view/X2Z6VZI/Lutheran_Home_and_Services_for__ilnbke-25-01705__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/UA5F3OA/Luther_Oaks_Inc__ilnbke-25-01706__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/EJN4M7Q/Lutheran_Home_for_the_Aged_Inc__ilnbke-25-01707__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/OADSDKA/Pleasant_View_Luther_Home_Inc__ilnbke-25-01708__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/OOZUT4Q/Lutheran_Life_Communities__ilnbke-25-01709__0001.0.pdf?mcid=tGE4TAMA List of Debtors' 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Select Rehabilitation Trade $808,084 PO Box 71985 Chicago, IL 60694 Attn: Legal Dept 2. Healthcare & Family Services Trade $446,990 201 S Grand Ave E, 3rd Fl Springfield, IL 62763-0002 Attn: Legal Dept Email: hfs.rules@illinois.gov 3. CR Improvements LLC Trade $255,294 4130 Downers Dr Downers Grove, IL 60515 Attn: Legal Dept Email: chris@crimprovements.com 4. Direct Energy Business Trade $185,587 PO Box 70220 Philadelphia, PA 19176 Attn: Legal Dept Tel: 888-925-9115 5. Tabet Divito & Rothstein LLC Professional $70,177 209 S Lasalle St, Fl 7 Services Chicago, IL 60604 Attn: Legal Dept Tel: 312-762-9450 Fax: 312-762-9451 6. Thomas Cuisine Professional $64,012 700 E Franklin Rd Services Meridian, ID 83642 7. Constellation NewEnergy Inc. Trade $43,449 PO Box 4640 Carol Stream, IL 60197 Attn: Legal Dept 8. 3rdThird Marketing LLC Professional $34,325 PO Box 803 Services Vashon, WA 98070 Attn: Legal Dept Email: patrick@3rd3rd.com 9. McKesson Medical Surgical Trade $27,049 PO Box 204786 Dallas, TX 75320 Attn: Legal Dept 10. NIPSCO Trade $25,723 PO Box 13007 Merrillville, IN 46411 Attn: Legal Dept 11. Health Care Service Trade $22,384 Corporation 300 E Randolph St Chicago, IL 60601 Attn: Legal Dept Tel: 800-654-7385 12. Ryan Fire Protection Trade $22,378 9740 E 148th St Noblesville, IN 46060 Attn: Legal Dept 13. K&M Printing Co. Trade $16,270 1410 N Meacham Rd Schaumburg, IL 60173 Attn: Legal Dept 14. City of Crown Point Trade $15,350 101 North East St Crown Point, IN 46307 Attn: Legal Dept 15. Silversphere LLC Trade $15,300 PO Box 75701 Chicago, IL 60675 Attn: Legal Dept Email: accountsreceivable@sentrics.com 16. OneNeck IT Solutions LLC Trade $15,069 PO Box 85790 Minneapolis, MN 55485 Attn: Legal Dept 17. Ameren Illinois Trade $14,883 PO Box 88034 Chicago, IL 606080 Attn: Legal Dept 18. Critical HVAC Systems LLC Trade $14,155 5400 Newport Dr, Ste 1 Rolling Meadows, IL 60008 Attn: Legal Dept 19. Prime Senior Home Care Inc. Trade $11,205 7331 N Lincoln Ave, Ste 3 Lincolnwood, IL 60712 Attn: Legal Dept Email: primeseniorcare@gmail.com 20. TK Elevator Corporation Trade $11,106 940 W Adams St, Ste 404 Chicago, IL 60607 Attn: Legal Dept Tel: 312-733-8025 MACON ARTS: Case Summary & Nine Unsecured Creditors --------------------------------------------------- Debtor: Macon Arts Center, LLC a Georgia Limited Liability Company 4570 Pio Nono Ave Macon, GA 31206 Business Description: The Macon Arts Center, also known as The Mac, is a dynamic live entertainment venue offering a wide range of experiences. Spanning 9.52 acres with over 30,000 square feet of operational space, it hosts a variety of events, including indoor and outdoor live concerts, corporate gatherings, film productions, private parties, theatrical performances, and much more. Chapter 11 Petition Date: February 3, 2025 Court: United States Bankruptcy Court Middle District of Georgia Case No.: 25-50167 Debtor's Counsel: Christopher W. Terry, Esq. BOYER TERRY LLC 348 Cotton Avenue, Suite 200 Macon, GA 31201 Tel: (478) 742-6481 Fax: (770) 200-9230 E-mail: Chris@boyerterry.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Anthony-Lynn Kirkland, Sr. as sole member. A full-text copy of the petition, which includes a list of the Debtor's nine unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/5USZOTI/Macon_Arts_Center_LLC_a_Georgia__gambke-25-50167__0001.0.pdf?mcid=tGE4TAMA MASTER FLOW: Selling Natchitoches Property to J. Bernard Realty --------------------------------------------------------------- Master Flow Technologies LLC and White Properties & Development LLC seek approval from the U.S. Bankruptcy Court for the Western District of Louisiana, Alexandria Division, to sell real property located at 936 Highway 504, Natchitoches, Louisiana, in a private sale. The Debtors receive an offer from John Bernard Realty to purchase the property for the price of $85,000, which it believes is fair in light of the real estate market in the relevant area, and enter into a Purchase and Sale Agreement. The lienholder of the Property are BOM Bank and Any Future Holder. The sale agreement indicates that the property is being sold on an "as is" basis, with waiver of redhibition, all appliances are to remain with the property, no deposit is made, no break-up fee, not conditioned upon appraisal, any title related contingencies, and approval from the Bankruptcy Court. The Debtors seek to liquidate the property so that it may justly and equitably compensate its creditors. The Debtors say that the assets are a significant part of its estate, and the sale will help expedite payment to the holders of allowed claims. The Debtors further request that any outstanding real estate taxes owed and outstanding on the property as of the closing date be paid by the closing notary at closing from the sale proceeds, with Purchaser to be responsible for real estate taxes accruing on or after the closing date. About Master Flow Technologies LLC Master Flow Technologies, LLC f/k/a MFT Resources, LLC, filed a Chapter 11 bankruptcy petition (Bankr. W.D. La. Case No. 24-80523) on August 27, 2024. Judge Stephen D Wheelis presides over the case. The Debtor is represented by Thomas R. Willson, Esq. MASTER FLOW: To Sell 173 Sorgee Road Property to Detris Crane ------------------------------------------------------------- Master Flow Technologies LLC and White Properties & Development LLC seek approval from the U.S. Bankruptcy Court for the Western District of Louisiana, Alexandria Division, to sell its property located at 173 Sorgee Road, Natchitoches, Louisiana, through private sale. The Debtors receive an offer from Detris Crane to purchase the property for $120,000, which it believes is fair in light of the real estate market in the relevant area, and enter into a Purchase and Sale Agreement. The Debtors believe the property should be sold at private sale due to the limited real estate market for the property and does not believe there is a necessity for a public auction. The lienholders of the Property are BOM Bank and Any Future Holder. The property is being sold on an "as is" basis, with waiver of redhibition, all appliances are to remain with the property, no deposit is made, no break-up fee, conditioned upon appraisal, but, it is contingent on obtaining credit or assumption of current mortgages in existence, and any title related contingencies. The Debtors also request that any outstanding real estate taxes owed and outstanding on the property as of the closing date be paid by the closing notary at closing from the sale proceeds, with Purchaser to be responsible for real estate taxes accruing on or after the closing date. About Master Flow Technologies LLC Master Flow Technologies, LLC f/k/a MFT Resources, LLC, filed a Chapter 11 bankruptcy petition (Bankr. W.D. La. Case No. 24-80523) on August 27, 2024. Judge Stephen D. Wheelis presides over the case. The Debtor is represented by Thomas R. Willson, Esq. as its legal counsel. MID-ATLANTIC RHEUMATOLOGY: Seeks Chapter 11 Bankruptcy in Maryland ------------------------------------------------------------------ On January 31, 2025, Mid-Atlantic Rheumatology LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Maryland. According to court filing, the Debtor reports $2,733,985 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Mid-Atlantic Rheumatology LLC Mid-Atlantic Rheumatology LLC is a medical group practice located in Millersville, MD that specializes in internal medicine and rheumatology. Mid-Atlantic Rheumatology LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-10845) on January 31, 2025. In its petition, the Debtor reports total assets of $679,494 and total liabilities of $2,733,985. Honorable Bankruptcy Judge David E. Rice handles the case. The Debtor is represented by: Daniel Staeven, Esq. FROST LAW 839 Bestgate Rd. Suite 400 Annapolis MD 21401 Email: daniel.staeven@frosttaxlaw.com MJD ENGINEERING: Case Summary & Eight Unsecured Creditors --------------------------------------------------------- Debtor: MJD Engineering Inc. 11631 Oak Ridge Trail Marysville, CA 95901 Business Description: The Debtor is engaged in the construction of utility systems. Chapter 11 Petition Date: February 3, 2025 Court: United States Bankruptcy Court Eastern District of California Case No.: 25-20487 Judge: Hon. Fredrick E Clement Debtor's Counsel: Michael Jay Berger, Esq. LAW OFFICES OF MICHAEL JAY BERGER 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212 Tel: (310) 271-6223 Fax: (310) 271-9805 E-mail: michal.berger@bankruptcypower.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Mario De Souza Sr. as president. A full-text copy of the petition, which includes a list of the Debtor's eight unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/LBJ77YY/MJD_Engineering_Inc__caebke-25-20487__0001.0.pdf?mcid=tGE4TAMA MJM LANDSCAPE: Seeks Cash Collateral Access ------------------------------------------- MJM Landscape Associates, Inc. asked the U.S. Bankruptcy Court for the District of Arizona for authority to use cash collateral from Jan. 27 to April 30. The company requires the use of cash collateral to pay expenses including expenses, raw material purchases, tariff/import fees, goods, supplies, manager/insider salary, utilities, insurance obligations, lease obligations. MJM obtained three merchant cash advance loans within the last two years: Square Funding, LLC, Byzfunder of NY LLC, and Fox Funding. The payment terms of each MCA loan have debilitated the company's cash flow and overall operational ability. Upon default, some of these lenders have made direct contact to the company's customers and asserted lien interest in receivables. Bankruptcy relief was both necessary and unavoidable. The company's total secured and unsecured debt is approximately $1.5 million. MJM asserts that there is an equity in most all of the vehicle loans and does not propose to pay adequate protection at this time. The company also asserts that its vehicles are all insured. About MJM Landscape Associates Inc. MJM Landscape Associates, Inc. is a licensed contractor, focused on outdoor landscape design, development and construction. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 4:25-bk-00663) on January 27, 2025. In the petition signed by Sandy Murany, president, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Charles Richard Hyde, Esq., at the Law Offices of C.R. Hyde, PLC, represents the Debtor as legal counsel. MMV F&B: Seeks Chapter 11 Bankruptcy in Texas --------------------------------------------- On January 31, 2025, MMV F&B II LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern 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 MMV F&B II LLC MMV F&B II LLC, d/b/a Curry Up Now (Grandscape), operates in the restaurant industry specializing in Indian cuisine. MMV F&B II LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 25-40260) on January 31, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by: Joyce W. Lindauer, Esq. ATTORNEY AT LAW & MEDIATOR 12900 Preston Rd. Dallas TX 75230 Tel: (972) 503-4033 E-mail: joyce@joycelindauer.com MORVATT ENTERPRISES: Matt Golden Appointed as Chapter 11 Trustee ---------------------------------------------------------------- Paul Randolph, the Acting U.S. Trustee for Region 8, appointed Matt Golden as Chapter 11 trustee for Morvatt Enterprises, LLC. The appointment was made pursuant to the order from the U.S. Bankruptcy Court for the Western District of Kentucky on August 20, 2024, and the resignation of the current trustee. To the best of the U.S. Trustee's knowledge, Mr. Golden's connections with Morvatt, creditors, and other parties-in-interest are limited to the connections set forth in Mr. Golden's verified statement. The Chapter 11 trustee can be reached at: Matt Golden 3809 Popular Lavel Road Louisville Kentucky 40213 Email: matt@mattgoldenlaw.com About Morvatt Enterprises Morvatt Enterprises, LLC, a company in Henderson, Ky., filed a Chapter 11 petition (Bankr. W.D. Ky. Case No. 23-40488) on Aug. 22, 2023, with up to $50,000 in assets and $1 million to $10 million in liabilities. Charles H. Morris, Jr., owner and sole member, signed the petition. Judge Charles R. Merrill oversees the case. Sandra D. Freeburger, Esq., at Deitz Shields & Freeburger, LLP, is the Debtor's legal counsel. MPH ACQUISITION: Moody's Alters Outlook on 'Caa1' CFR to Stable --------------------------------------------------------------- Moody's Ratings affirmed MPH Acquisition Holdings LLC's ("MultiPlan") Caa1 Corporate Family Rating and downgraded the Probability of Default Rating to D-PD from Caa1-PD as Moody's considered the recently completed debt exchanges to be a distressed exchange. In a few business days, Moody's will upgrade MultiPlan's PDR to Caa1-PD, consistent with the probability of default expectation embedded in the Caa1 CFR. Moody's also assigned B2 ratings to the new first-out backed senior secured first lien revolving credit facility expiring 2029 and first-out backed senior secured first lien term loan due 2030, Caa1 ratings to the new second-out backed senior secured first lien term loan due 2030, second-out backed senior secured first lien notes (Tranches A and B) due 2030, and a Caa3 rating to the new third-out backed senior secured first lien notes due 2031. Concurrently, Moody's downgraded the rating on the non-exchanged senior secured notes due 2028 to Caa3 from B2, and rating on the non-exchanged senior unsecured notes due 2028 to Caa3 from Caa2. The rating on the senior secured first lien term loan B due 2028 will be withdrawn at the close of the exchange transaction as it will no longer be outstanding. The company's Speculative Grade Liquidity ("SGL") Rating was revised to SGL-3 from SGL-1. The ratings outlook was also revised to stable from negative. The rating actions follow MultiPlan's recently completed exchange transactions where the company exchanged nearly all of its existing term loan and notes maturing 2027-2028 for new term loans and notes maturing 2030-2031. Under the exchanges, the senior secured first lien term loan due 2028 was exchanged for new first-out first lien term loans due 2030 (11% of total) and new second-out first lien term loans due 2030 (89% of total). Holders of the 5.5% senior secured first lien notes due 2028 received new first-out first lien term loans due 2030 (18% of new total), new second-out senior secured first lien notes tranche A maturing 2030 (28% of total) and new second-out senior secured first lien notes tranche B maturing 2030 (54% of total). Holders of the 5.75% unsecured notes due 2028 and PIK toggle convertible notes due 2027 were exchanged for new second-out senior secured first lien notes tranche A due 2030 (14% of total), new second-out senior secured first lien notes tranche B due 2030 (9% of total), and new third-out senior secured first lien notes due 2031 (77% of total). 99.6% of the term loan and notes were tendered in the exchange. The affirmation of the Caa1 CFR reflects Moody's expectation that MultiPlan's financial leverage will remain elevated at approximately 8.0x over the next 12 to 18 months with minimal near-term EBITDA growth offset by additional debt tied to PIK interest. Moody's also expect the company to maintain adequate liquidity. Moody's expect free cash flow near breakeven levels, over the near to medium term, reflecting additional cash interest expense following the debt exchanges and elevated levels of investment in the business to support growth. Moody's continue to believe ongoing litigation with numerous health systems could weigh on business prospects going forward. The revision of the outlook from negative to stable reflects the extension of all debt maturities to 2029-2031 which gives the company time to focus on ramping new product offerings and other initiatives to drive revenue and EBITDA growth. RATINGS RATIONALE MultiPlan's Caa1 CFR reflects its elevated financial leverage and very high customer concentration, with around half of its revenue from its largest three customers. Debt/EBITDA was approximately 8.0x at September 30, 2024 (and pro forma the debt exchanges) and Moody's expect it to remain elevated in the 8.0x range over the next 12-18 months. MultiPlan's rating is supported by the company's solid market position in the healthcare cost management industry and robust operating margins. The company also benefits from high barriers to entry in the preferred provider organization (PPO) industry and switching costs for its data-driven analytics business. The Speculative Grade Liquidity Rating of SGL-3 reflects the company's adequate liquidity, as Moody's expect MultiPlan will generate near breakeven free cash flow over the next 12 to 18 months. Liquidity is supported by a $350 million revolving credit facility expiring in 2029, with approximately $220 million of availability pro forma the debt exchanges, and Moody's estimate minimal cash balance. There are no material near-term debt maturities. The B2 ratings assigned to the first-out senior secured first lien revolving credit facility and term loan reflect their senior position in the capital structure, such that these lenders would be repaid in full before any distributions to the other secured lenders. The Caa1 ratings assigned to the new second-out senior secured first lien term loan and notes are two notches lower than the B2 on the first-out first lien debt, and in line with the Caa1 CFR. This reflects the instruments' effective subordination to the new-first out first lien debt and the loss absorption provided by junior debt. The Caa3 ratings assigned to the new third-out senior secured first lien notes is two notches below the CFR. This reflects the effective subordination of the third out debt to all of the more senior secured debt. The Caa3 ratings on the non-exchanged debt reflects their subordinated rankings to all exchanged debt tranches in the payment waterfall. The outlook is stable. Moody's expect Multiplan's leverage to remain elevated as the company focuses on new product offerings and other initiatives to drive revenue and EBITDA growth. A comprehensive review of all credit ratings for the respective issuer has been conducted during a rating committee. ESG CONSIDERATIONS MultiPlan's CIS-5 indicates that the rating is lower than it would have been if ESG risk exposures did not exist and that the negative impact is more pronounced than for issuers scored CIS-4. MultiPlan has exposure to both social (S-4) and governance risk considerations (G-5). As a cost containment company with significant revenue generated from the repricing of out of network medical bills, MultiPlan is at risk of a change in legislation that could impact the way medical bills are repriced. Furthermore, MultiPlan has aggressive financial policies evidenced by its high financial leverage that has limited the company's financial flexibility as well as the completion of a debt exchange transaction that Moody's viewed as a distressed exchange. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if MultiPlan demonstrates a track record of consistent EBITDA growth and profitability as well as good liquidity. The ratings could be downgraded if leverage continues to rise and/or liquidity weakens. The ratings could be downgraded if Moody's see increased likelihood of another transaction that Moody's would deem a distressed exchange or default. MultiPlan operates in the healthcare benefits field as a provider of healthcare cost management solutions. Through its Network-Based Services (20% of revenue YTD 9/30/2024), MultiPlan is one of the largest independent PPOs, providing networks of contracted healthcare providers for health plans to use. MultiPlan operates two other segments: Analytics-Based Solutions (68%) - its largest business - and Payment and Revenue Integrity Services (12%). MultiPlan uses data and technology to determine a fair price for out of network claims and identify improper and unnecessary charges before or after claims are paid. Approximately 90% of the company's revenues are generated as a percentage of savings realized by their payor customers. MultiPlan is a public company and its largest shareholder is Hellman & Friedman. The company generated $943 million in revenue over the twelve months ending September 30, 2024. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. MYNARIC AG: Plans to File Chapter 11 Bankruptcy ----------------------------------------------- Chris Forrester of Advanced Television reports that Mynaric AG, a German satellite equipment manufacturer, is expected to file for bankruptcy protection in the next few days. Based in Munich, the company specializes in laser communication systems for space and counts Northrop Grumman, Rocket Lab, and York Space among its clients. Under Germany's Corporate Stabilisation & Restructuring Act (StarRUG), businesses can apply for protection during financial challenges. As of the end of January 2025, Mynaric had EUR 8.4 million in cash but has no other financing options available. The company also revised its 2024 revenue forecast from EUR 60 million to just EUR 14.1 million. Mynaric has secured a one-week extension from its lenders and has received three bridging loans totaling EUR 21.5 million, which expire on February 7, 2025. The company is currently in negotiations for a fourth loan, which could support its restructuring efforts. About Mynaric AG Mynaric AG is based in Munich and specializes in laser communication systems for space and counts Northrop Grumman, Rocket Lab, and York Space among its clients. N&H SADDLEBRED: Court OKs Woodschurch Property Sale for $415,000 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey has approved N&H Saddlebred Holdings LLC, to sell its real property located at 119 West Woodschurch Road, Readington Township, New Jersey. The Court authorized the Debtor to use the proceeds of the sale to satisfy the liens on the real property. The Debtor is ordered to pay the closing costs and the property taxes due and owing to the Township of Readington shall be paid at the time of closing without further order by this Court. The Court held that the sum of $415,000.00 shall be reserved by the Purchaser from the net proceeds of the sale. The Debtor also determined that the net proceeds of the Sale, after payment of closing costs and property taxes and the reservation by the Purchaser, shall be held by the Debtor's attorney in his Attorney Trust Account. About N&H Saddlebred Holdings LLC N&H Saddlebred Holdings LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 23-21332) on Dec. 6, 2023, listing up to $10 million in both assets and liabilities. Judge John K. Sherwood presides over the case. Herbert K. Ryder, Esq., at the Law Offices of Herbert K. Ryder LLC represents the Debtor as counsel. NATIONAL BANK OF CANADA: S&P Rates Preferred Share Issuances 'BB+' ------------------------------------------------------------------ S&P Global Ratings assigned its 'BB+' issue rating to National Bank of Canada's (NBC; A+/Stable/A-1) two nonviable contingent capital (NVCC) first preferred share issuances. S&P rates NVCC preferred shares four notches below the stand-alone credit profile (SACP) of a bank. NBC's SACP is 'a-'. The rating on the preferred shares reflects two notches for deferral and coupon nonpayment, and one each for subordination and risk of equity conversion. Following the closing of the acquisition of Canadian Western Bank (CWB) by NBC on Feb. 3, 2025, CWB intends to implement, effective Feb. 4, 2025, certain amendments previously approved by the holders of the outstanding CWB first preferred shares series 5 and series 9 (NVCC). NBC will exchange CWB's preferred shares for substantially equivalent NBC first preferred shares. NBC and CWB intend to amalgamate on March 1, 2025. S&P said, "We believe NBC is well positioned in a weaker credit environment due to its strong underwriting standards and balance sheet. We expect modest deterioration in credit quality metrics in 2025 before lower interest rates work through the economy and provide relief to borrowers. "We view NBC's capital and earnings assessment to be adequate. We expect the bank will maintain its strong profitability supported by the diversity of its businesses, and funding and liquidity metrics to remain similar to those of larger Canadian peers. Uncertainty around domestic policy, immigration, and trade tariffs pose some risk to our base case." The stable outlook reflects S&P's expectations that over the two-year outlook horizon, NBC will sustain: -- Strong operating results helped by good cost discipline; -- Conservative underwriting standards; -- Capital that is neutral to the ratings; and -- Funding and liquidity metrics in line with those of peers. The outlook also reflects S&P's expectation the bank will successfully amalgamate and complete the systems conversion. NESCO HOLDING: Moody's Affirms 'B2' CFR, Outlook Remains Stable --------------------------------------------------------------- Moody's Ratings affirmed the ratings of Nesco Holdings II, Inc. (CTOS), the borrowing entity for Custom Truck One Source, Inc. (NYSE: CTOS), including the company's B2 corporate family rating, B2-PD probability of default rating, and B3 senior secured second lien debt rating. The company's speculative grade liquidity rating (SGL) is unchanged at SGL-3. The outlook is maintained at stable. The affirmation reflects Moody's expectation that CTOS' profitability will improve. Improvement will be driven by a return to growth in the company's utility end market segment, which is rebounding after experiencing weak demand and revenue declines throughout the first half of 2024. Moody's also anticipate margin will improve as equipment utilization rates rise and inventory will decline and benefit cash flow. Increased profitability will result in a decline in debt-to-EBITDA to below 4.5 times by the end of 2025. RATINGS RATIONALE CTOS' ratings reflect its position as one of the leading North American providers of specialty rental equipment to the transmission and distribution (T&D), rail, telecom and infrastructure sectors. The company benefits from high equipment utilization rates in the rental business and favorable long-term demand for customers in its end markets. This is driven by maintenance and upgrade needs in the electric utility T&D, rail, telecom and infrastructure segments. CTOS also has a competitive advantage provided by its "one-stop-shop" platform that offers rentals, new and used sales and parts and servicing on a national scale. However, CTOS has moderate scale and had significant negative free cash flow for the LTM period ended September 30, 2024, which resulted from fleet growth investment. The company also has modest profit margin that has been declining over the last few years. In addition, CTOS had high debt-to-LTM EBITDA of 4.9 times at September 30, 2024. Despite being publicly traded on the NYSE, CTOS is majority owned by its private equity sponsor Platinum Equity and there is potential for an increasingly aggressive financial policy. Acquisitions are also anticipated to grow market share in a fragmented industry. CTOS' liquidity is adequate, as reflected in the company's SGL-3 speculative grade liquidity rating. Liquidity is supported by $319 million of availability under a $950 million ABL due 2029. CTOS is expected to operate with limited cash. As a result, the company will need to generate positive free cash flow to fund its operations and capital investment or increase its reliance on the ABL. The stable outlook reflects Moody's expectation that CTOS' topline will grow and profit will improve such that debt-to-EBITDA will decline below 4.5 times over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if there is a large decline in equipment utilization rates. Debt-to-EBITDA expected to remain above 5.5 times, FFO-to-debt sustained below 12%, or EBITA margin sustained below 9% could also lead to a downgrade. The ratings could also be downgraded with deteriorating liquidity. The ratings could be upgraded if CTOS improves liquidity and reduces reliance on the ABL. Quantitatively, debt-to-EBITDA expected to remain below 4.0 times, FFO-to-debt sustained above 20%, and EBITA margin sustained above 12.5% could support a ratings upgrade. Nesco Holdings II, Inc. is the borrowing entity for Custom Truck One Source, Inc, formerly known as Nesco Holdings, Inc. CTOS rents and sells new and used specialty rental equipment including bucket trucks, digger derricks, dump trucks, cranes, service trucks, and heavy-haul trailers. Customers include electric utilities, telecoms, railroads and related contractors for maintenance, repair, upgrade and installation work of electric lines, telecommunications networks and rail systems. The company reports in three segments; Equipment Rental Solutions, Truck and Equipment Sales and Aftermarket Parts and Services. CTOS is majority owned and controlled by private equity firm Platinum Equity. The principal methodology used in these ratings was Equipment and Transportation Rental published in December 2024. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. NEW YORK'S PREMIER: Gets Extension to Access Cash Collateral ------------------------------------------------------------ New York's Premier Group, LLC received third interim approval from the U.S. Bankruptcy Court for the Northern District of New York to use its secured creditors' cash collateral. The interim order approved the use of cash collateral to pay employee wages and other expenses for the period from Jan. 18 to Feb. 21. The projected expenses for the period total $250,064. To protect secured creditors, the company will make a monthly payment of $1,000 to Torro, LLC, Bluevine, Inc., Channel Partners Capital, LLC, Insta Funding, LLC, Main Street Merchant Services, Inc., Capytal.com, and Quid Holdings. The creditors will also be granted replacement liens on the company's post-petition assets to the same extent and with the sane priority as their pre-bankruptcy liens. The next hearing is set for Feb. 19. Insta Funding can be reached through its counsel: Shanna M. Kaminski, Esq. Kaminski Law, PLLC 88 Pine Street, Ste. 2430 New York, NY 10005 (248) 462-7111 skaminski@kaminskilawpllc.com Main Street can be reached through its counsel: Alan C. Hochheiser, Esq. Maurice Wutscher, LLP 23611 Chagrin Blvd. Suite 207 Beachwood, OH 44122 Telephone: (216) 220-1129 Facsimile: (216) 472-8510 ahochheiser@mauricewutscher.com About New York's Premier Group New York's Premier Group, LLC is a local contractor in Clifton Park, offering roofing, siding, and window services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. N.Y. Case No. 24-11304) on November 25, 2024, with $991,455 in assets and $1,986,430 in liabilities. Johnathan Vincent, managing member, signed the petition. Judge Robert E. Littlefield, Jr. oversees the case. The Debtor is represented by: Michael Leo Boyle Boyle Legal, LLC Tel: 518-407-3121 Email: mike@boylebankruptcy.com NOMADE VILLA: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Nomade Villa Collection LLC 3111 SW 22nd Avenue Miami FL 33133 Business Description: Nomade Villa Collection specializes in offering high-end luxury vacation rentals in Miami Beach, Brickell, and Downtown Miami, leveraging extensive experience in the South Florida real estate market. Chapter 11 Petition Date: February 4, 2025 Court: United States Bankruptcy Court Southern District of Florida Case No.: 25-11231 Judge: Hon. Corali Lopez-Castro Debtor's Counsel: Celi S. Aguilar, Esq. CSA LAW FIRM 1200 Brickell Avenue, Suite 800 Miami, FL 33131 Tel: (786) 489-3650 Email: aguilar@thecsalawfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by James Kolka 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/O5SMGDY/Nomade_Villa_Collection_LLC__flsbke-25-11231__0001.0.pdf?mcid=tGE4TAMA OCEANKEY (US) II: Moody's Rates New Incremental First Lien Loan B2 ------------------------------------------------------------------ Moody's Ratings assigned a B2 rating to Oceankey (US) II Corp.'s (Mediaocean) proposed incremental senior secured first lien term loan due December 2028, which will rank pari passu to the company's existing first lien debt. Proceeds from the proposed debt will be used to fund the acquisition of Innovid. Mediaocean's B2 corporate family rating and the B2 ratings on the company's other first lien debt are not affected by the new issuance. The outlook remains negative. RATINGS RATIONALE The B2 CFR reflects Mediaocean's high pro forma debt leverage, relatively small revenue base, customer concentration among top advertising agencies and an acquisitive growth strategy. The company's narrow focus on software solutions for the advertising industry exposes it to the cyclical advertising market, which has been vulnerable to economic downturns. In addition, rapidly evolving privacy regulations and changes being implemented by walled gardens (Google, Amazon, Facebook, Apple) can present both risks and opportunities for Mediaocean, given the company's increased focus on digital advertising. Mediaocean's most recent acquisitions of 4C, Flashtalking, and now Innovid strengthen the company's positioning in the advertising industry that is undergoing structural shifts given the increasing role of tech firms and data-driven solutions in the market. Mediaocean benefits from a leading presence within its targeted market and a subscription centric sales model that provides a high degree of predictability given multiyear contracts and long-standing relationships with the advertising agencies. Mediaocean management's strong track record of integrating acquired businesses and cross-selling solutions to existing customers also supports its credit profile. The negative outlook reflects elevated leverage and delayed improvement in free cash flow (FCF) generation following the Innovid acquisition. It also considers uncertainty around expected operating performance of the combined entity, timing of synergy realization, and impact of the newly implemented Certified Service Partner (CSP) program. This transaction brings Moody's adjusted pro forma leverage to the low-to-mid 9x range (excluding expected synergies) from the high 7x range in the September 2024 LTM period. Although Moody's believe the company can delever toward the mid 5x range and improve FCF/Debt toward 5% in the next two years, execution risk around acquisition integration and growth can challenge these assumptions. Moody's expect that Mediaocean will maintain good liquidity over the next 12-18 months. As of September 2024, the company's sources of liquidity consist of $92 million in cash and a $75 million undrawn revolver. Moody's expect Mediaocean to remain FCF positive in the next 12-18 months, with FCF/debt in the low to mid-single digit percent range. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Ratings could be upgraded if Mediaocean's scale is increased substantially by generating consistent organic revenue and EBITDA growth such that adjusted leverage is expected to be sustained below 4x. The company would also have to demonstrate conservative financial policies. The ratings could be downgraded if leverage were expected to be maintained above 6.5x on other than a temporary basis, free cash flow to debt were to fall below 5%, or if revenue declines. Headquartered in New York, New York, Mediaocean is a global, market-leading provider of financial and operational software solutions for the advertising industry, enabling agencies and brands to manage and coordinate the entire advertising workflow. The company is owned by private equity firms CVC Capital Partners and TA Associates. Mediaocean generates under $400 million in annual revenues, although above $500 million pro forma for the Innovid transaction. The principal methodology used in this rating was Software published in June 2022. ORANGE TUMBLER: Seeks to Use Cash Collateral Until March 14 ----------------------------------------------------------- Orange Tumbler, LLC asked the U.S. Bankruptcy Court for the District of Maine for authority to use cash collateral until March 14. The Debtor requires the use of cash collateral for working capital and other general corporate purposes. Bangor Savings Bank asserts an interest in the collateral. The Debtor owes Bangor a principal loan balance of approximately $115,000. The Bangor obligations are secured by property located at 82 Whitney Street in Auburn, Maine, that has recently been appraised and is under contract for $425,000. Bangor is substantially oversecured and adequately protected. The principal owed on their debt is approximately $115,000. Even if they were owed $145,000, they would still have an equity cushion of over $275,000. Bangor's equity cushion is over 65% of the value of the property. In addition, the budget shows adequate cash flow to pay Bangor's monthly mortgage payment of $826.97. About Orange Tumbler LLC Orange Tumbler, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Maine Case No. 24-20254) on December 6, 2024. In the petition signed by Ricky Drew, manager, the Debtor disclosed up to $500,000 in both assets and liabilities. Judge Michael E. Fagone oversees the case. Michael P. Boyd, Esq. represents the Debtor as legal counsel. Bangor Savings Bank, as lender, is represented by: Jeremy R. Fischer, Esq. Drummond Woodsum 84 Marginal Way, Suite 600 Portland, Maine 04101-2480 Telephone: (207) 772-1941 Email: jfischer@dwmlaw.com OUTBRAIN INC: S&P Assigns 'B+' ICR, Outlook Stable -------------------------------------------------- S&P Global Ratings assigned its 'B+' issuer credit rating to advertising technology provider Outbrain Inc. based on its pro forma S&P Global Ratings-adjusted gross leverage of about 4.6x. S&P said, "At the same time, we assigned our 'BB-' issue-level rating and '2' recovery rating to the company's proposed $625 million senior secured notes due 2030. The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 75%) recovery in the event of a default. "The stable outlook reflects our expectation that Outbrain's S&P Global Ratings-adjusted gross leverage will decline to about 4.0x in 2025, from a pro forma level of about 4.6x in 2024, as it benefits from the ongoing shift toward digital marketing solutions (and away from traditional media offerings) and the realization of cost synergies from its combination with Teads." Outbrain Inc. is planning to issue $625 million of senior secured notes due 2030, which it will use to partially fund its acquisition of Teads Inc. The company has agreed to acquire Teads for about $888 billion, which will comprise $625 million of cash and 43.75 million shares of Outbrain's common stock. S&P said, "Our rating reflects Outbrain participation in the highly competitive and fragmented digital advertising industry, relatively small scale and market share, exposure to cyclical advertising revenue, and pro forma S&P Global Ratings-adjusted gross leverage of about 4.6x." These factors are somewhat offset by the company's broad geographic and good customer diversity among industry verticals and healthy free operating cash flow (FOCF) generation. Outbrain operates in the highly competitive and fragmented digital advertising industry. The barriers to entry in the company's industry, which is largely dominated by the tech giants Alphabet and Meta, are low. S&P said, "The combined business also has relatively small scale and market share (we estimate in the low-single-digit percent area) and is substantially exposed to cyclical advertising revenue. While Outbrain has exclusive agreements with its media partners, those agreements are limited to specific areas on the partner's webpage (Outbrain at the bottom, Teads in the middle) such that its media partners can still sell advertising space through its competitors or on their own. However, we expect the company will benefit from favorable industry tailwinds as consumers and advertisers continue to shift toward digital alternatives from traditional media. Outbrain also benefits from its broad geographic diversity, good customer diversity among industry verticals, and high customer retention rates (above 98%)." S&P said, "We view the acquisition of Teads as highly complementary to Outbrain's business. The acquisition will improve the company's ability to address the entire marketing funnel, which will provide it with cross-selling opportunities to offer branding solutions to its existing clients and performance-based services to Teads' enterprise clients. The acquisition will also expand Outbrain's geographic reach and increases its exposure to the growing connected-TV (CTV) market. In addition, the company has identified $65 million-$75 million of cost synergies that it plans to realize over the two years following the close of the acquisition, including through headcount reductions, the elimination of duplicative marketing and professional services, the rationalization of its real estate footprint, and improved network optimization. "We expect the realization of these synergies, along with Teads' materially higher margin profile, will improve Outbrain's EBITDA margin to about 10% in 2025 and 13% in 2026 from about 2% in 2024. Teads' stand-alone EBITDA margins are higher than Outbrain's margins given the higher pricing of Teads' premium advertising inventory. Outbrain has also historically maintained low EBITDA margins due to the minimum guaranteed payments it makes to its media partners. "We believe the company's leverage could approach 4x over the next 12 months. We expect Outbrain's pro forma S&P Global Ratings-adjusted gross leverage will be about 4.6x as of the close of the transaction before declining to about 4.0x by the end of 2025 and to about 3.0x in 2026. We expect the improvement in the company's leverage over the next two years will primarily stem from the expansion of its EBITDA growth (supported by industry tailwinds, cross-selling opportunities, and cost synergies) rather than voluntary debt repayment. However, we also recognize the potential risks associated with Outbrain's deleveraging below 4x, including the potential for delays in realizing its identified cost synergies, integration challenges, and limited visibility into the expected acceleration in its revenue growth in 2025, given the very short lead times for digital advertising. We do not anticipate the company will undertake further leveraging transactions over the next couple of years because it will focus on integrating Teads. We forecast Outbrain's FOCF to debt will be about 9% in 2025 before improving to about 15% in 2026. "The stable outlook reflects our expectation that Outbrain's S&P Global Ratings-adjusted gross leverage will decline to about 4.0x in 2025, from a pro forma level of about 4.6x in 2024, as it benefits from the ongoing shift to digital marketing solutions and realizes cost synergies from its combination with Teads." S&P could lower the rating on Outbrain if its S&P Global Ratings-adjusted gross leverage increases above 5x or its FOCF to debt declines below 5%. This could occur if: -- Adverse economic conditions or intense industry competition lead to significant increases in its customer churn, pricing volatility, or cost pressures; or -- The company pursues additional debt-financed acquisitions. S&P could raise its rating on Outbrain if: -- Its S&P Global Ratings-adjusted gross leverage declines below 4x on a sustained basis; -- Its FOCF to debt increases above 10% on sustained basis; and -- The company makes steady progress toward realizing the identified cost synergies from its merger with Teads. P2 OAKLAND: Seeks to Use Cash Collateral ---------------------------------------- P2 Oakland CA, LLC asked the U.S. Bankruptcy Court for the Northern District of California, Oakland Division, for authority to use cash collateral. The company requires the use of cash collateral to pay expenses involved in development, post-petition taxes, utilities, insurance and maintenance on the rental property. The approval of the company's use of cash collateral, both on an interim and final basis, will enable the company to pay expenses necessary to personal and business-related expenses. The company has pledged the rental income as collateral on the rental property. It will be setting up cash collateral accounts for the subject property and the income for the property will be allocated to the cash collateral account. It is anticipated that all secured parties will consent to the use of the cash collateral subject to the company's continued to pay all of the contractually due payments and subject to the budget, with a 20% variance. About P2 Oakland CA P2 Oakland CA, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-41810) on November 14, 2024, with up to $10 million in both assets and liabilities. Bruce Edward Loughridge, principal, signed the petition. Judge William J. Lafferty oversees the case. Kevin Tang, Esq., at Tang & Associates, represents the Debtor as legal counsel. PENN HILLS SD: Moody's Upgrades Issuer & GOLT Ratings to Ba1 ------------------------------------------------------------ Moody's Ratings has upgraded Penn Hills School District, PA's issuer and general obligation limited tax (GOLT) ratings to Ba1 from B1 and removed the positive outlook. At the end of fiscal 2023, the district had approximately $164.6 million in debt outstanding. The upgrade reflects the district's materially improved financial position and trajectory following years of extraordinary federal coronavirus aid, increased state support due to an improved funding environment, property tax millage increases, and the implementation of a formal fund balance policy. RATINGS RATIONALE The Ba1 issuer rating reflects the district's materially improved financial position that will exhibit relative stability through fiscal 2025 balanced against a weak enrollment and demographic outlook. After five years in the commonwealth's Financial Recovery program, the Pennsylvania Department of Education officially undesignated the district in May of 2024, a program which led to the adoption of a formal fund balance policy and long term financial planning. Through fiscal 2023, reserves steadily grew to $19 million or 19% of operating revenue from a deeply negative position in years prior, and similar results are expected for fiscal 2024 and 2025. While the pace of the district's reserve growth can be attributed significantly to federal coronavirus aid, growing state aid will partially compensate as that support concludes. The district will benefit significantly from an improved funding environment for school districts in the commonwealth but is conservatively budgeting for limited revenue growth. The district's improved financial planning and policies are particularly important given steady population and enrollment declines along with significant charter competition which could accelerate enrollment losses and budgetary pressures. While the district does continue to face challenges related to below-average full value per capita (property wealth) of $41,000 and household income (85% of the national level), it has continued to slowly increase its property tax millage. Moreover, leverage has moderated to a more manageable 239% of operating revenue, and the district does not have any significant borrowing plans. The lack of distinction between the district's issuer rating and the Ba1 rating on the district's GOLT debt is based on the district's general obligation full faith and credit pledge. RATING OUTLOOK Moody's do not assign outlooks to local government credits with this amount of debt outstanding. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Maintenance of reserves and liquidity above 15% of revenue -- Continued moderation of enrollment loss (less than 2% annually, on average) -- Improved property wealth and household income FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Return to structurally imbalanced financial operations leading to draws on reserves and liquidity -- Acceleration of trend of declining enrollment (greater than 2% annually, on average) -- Additional borrowing or pension liability growth that drives leverage to over 300% of revenue LEGAL SECURITY All of the district's rated debt is backed by its full faith and credit and taxing power, including ad valorem taxes subject to the limitations of Pennsylvania's Act 1 Taxpayer Relief Act. PROFILE Penn Hills School District is located in Allegheny County (Aa3 stable) in southwestern Pennsylvania (Aa2 stable), approximately nine miles west of downtown Pittsburgh (A1 positive). The district's enrollment was 3,023 as of the 2023-2024 school year. METHODOLOGY The principal methodology used in these ratings was US K-12 Public School Districts published in July 2024. PENNYMAC FINANCIAL: S&P Rates New $650MM Sr. Unsecured Notes 'B+' ----------------------------------------------------------------- S&P Global Ratings assigned its 'B+' issue rating and '3' recovery rating to PennyMac Financial Services Inc.'s proposed $650 million senior unsecured notes due 2033. The '3' recovery rating reflects its expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in a simulated default scenario. PennyMac Financial Services Inc. (PFSI; B+/Stable/--) intends to use the net proceeds to repay its secured mortgage servicing rights (MSRs) facilities, which had a combined outstanding balance of $2.0 billion as of Dec. 31, 2024. It will also use proceeds to repurchase a portion of its senior unsecured notes due October 2025 (which had an outstanding balance of $650 million) and for other general corporate purposes. As of Dec. 31, 2024, the company's adjusted debt to rolling-12-months EBITDA (based on S&P Global Ratings' calculation) was 4.4x, down from 5.1x as of year-end 2023. The decline in leverage resulted primarily from stronger earnings from servicing portfolio growth and higher mortgage origination volume. S&P said, "While we expect the higher for longer interest rate and affordability challenges to weigh on PFSI's earnings growth in 2025, we view positively the company's balanced business model. As of year-end 2024, the total unpaid principal balance of PFSI's servicing portfolio increased to $666 billion from $607 billion a year prior, which we expect to generate relatively stable cash flow due to low prepayment rates. We also expect the company to realize increased refinancing volume if interest rates decline and serviced loans are prepaid, as evidenced by the elevated origination volume in the third quarter of 2024. "As of year-end 2024, the company's debt to tangible equity was 1.5x, on the higher end of our 1.0x-1.5x base-case expectation. "The stable outlook indicates our expectation that over the next 12 months, PFSI's adjusted debt to EBITDA will remain 4.0x-5.0x, even while an uncertain interest rate environment could delay the recovery of residential mortgage originations. We also expect debt to tangible equity to remain 1.0x-1.5x and PFSI to maintain sufficient liquidity to meet operational needs." Issue Ratings--Recovery Analysis Key analytical factors -- S&P simulated a default scenario for the company occurring in 2029, resulting from reduced origination volumes and rapid prepayments of mortgages. -- Eventually, the company's liquidity and capital resources could become strained to the point where it can't continue to operate without an equity infusion or bankruptcy filing. -- S&P believes creditors would place the most value on the company's MSRs. -- S&P has therefore valued the company through a discrete asset valuation of its MSRs. Simulated default assumptions -- High delinquency rates leading to depressed MSR valuations. -- Sustained period of rapid amortization of MSRs with limited ability to refinance the repayments. -- Limited new originations, an increase in borrower delinquencies, and a rise in the discount rate to value MSRs. Simplified waterfall -- Net enterprise value (after 5% administrative costs): $5.6 billion -- Priority claims: $3.5 billion -- Collateral value available to senior unsecured creditors: $2.1 billion -- Senior unsecured debt: $3.8 billion -- Recovery expectations: 50%-70% (rounded estimate: 55%) Note: All debt amounts include six months of prepetition interest. PETROQUEST ENERGY: Gets Court Approval for $20.6MM Oilfield Sale ---------------------------------------------------------------- Rick Archer of Law360 reports that on February 3, 2025, a Delaware bankruptcy judge approved the $20.6 million sale of PetroQuest Energy's East Texas oilfields, over two years after a failed sale attempt resulted in a lawsuit that contributed to the company's Chapter 11 bankruptcy. About PetroQuest Energy PetroQuest Energy Inc. is an oil and gas exploration company in Lafayette, La. PetroQuest Energy sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-12609) on November 13, 2024. In its petition, the Debtor reported assets between $100,000 and $500,000 and liabilities of $115.5 million. Judge Craig T. Goldblatt presides over the case. The Debtor is represented by Patrick J. Reilley, Esq., at Cole Schotz P.C. PHOENIX EXTEND-A-SUITES: Files Emergency Bid to Use Cash Collateral ------------------------------------------------------------------- Phoenix Extend-A-Suites, LLC asked the U.S. Bankruptcy Court for the District of Arizona for authority to use cash collateral and provide adequate protection, in accordance with the budget, with a 15% variance. Capital Fund I asserts a lien on the cash collateral. On June 1, 2023, the company borrowed $5.2 million from Cap Fund under a promissory note dated June 1, 2023. The company also secured the Promissory Note with a Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement dated May 31, 2023, which was recorded with the Maricopa County Recorder's Office on June 1, 2023 at Rec. Doc. No. 2023-0286440. Pursuant to the Deed of Trust & Security Agreement, the company granted Cap Fund a blanket security interest in its assets. On October 15, 2024, Cap Fund exercised its rights under the Deed of Trust and commenced a trustee sale of the company's hotel. Another creditor Newco Capital Group, LLC also asserts a security interest in the company's cash collateral which is junior to Cap Fund. Phoenix believes that the hotel's value is no less than $8 million based on comparative sales. The Secured Creditors have a sufficient equity cushion and are adequately protected. Additionally, the company proposes to provide replacement liens to the Secured Creditors. The Replacement Liens will be on the same categories of assets as the pre-petition collateral and have the same priority and validity as the pre-petition lien as to which it relates, and will be capped at the value of such pre-petition collateral in which Cap Fund (or NewCo) had as an unavoidable perfected security interest as of the Petition Date. A copy of the motion is available at https://urlcurt.com/u?l=voElE0 from PacerMonitor.com. About Phoenix Extend-A-Suites LLC Phoenix Extend-A-Suites, LLC operates a 100 room hotel under the Extend-A-Suites flag which is located at 17211 North Black Canyon Highway, Phoenix, Arizona. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 2:25-bk-00688-BMW) on January 27, 2025. In the petition signed by Jennifer Schubert, managing member, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Brenda Moody Whinery oversees the case. Patrick Keery, Esq., at Keery McCue, PLLC, represents the Debtor as legal counsel. PHOENIX GUARANTOR: Moody's Affirms B1 CFR, Outlook Remains Stable ----------------------------------------------------------------- Moody's Ratings affirmed Phoenix Guarantor Inc.'s ("PGI" dba "BrightSpring") B1 corporate family rating, B1-PD probability of default rating and B1 ratings on the company's senior secured first lien revolving credit facility and senior secured first lien term loan B. There is no change to the company's SGL-1 speculative grade liquidity rating ("SGL"). The outlook remains stable. The ratings affirmation follows PGI's recent announcement that it has entered into a definitive agreement to sell its community living business, namely ResCare Community Living, to National Mentor Holdings Inc. (dba Sevita). PGI intends to use the proceeds from this sale, approximately $715 million after tax, transaction fees and expenses, to repay a portion of its senior secured first lien term loan B. Pro forma for the use of proceeds for debt repayment and excluding EBITDA from community living business, Moody's estimate that the transaction will have slight deleveraging effect (-0.2 times). Moody's adjusted LTM debt/EBITDA was approximately 5.6x at the end of September 30, 2024. Pro forma for the divestiture, the debt/EBITDA will decline to 5.4 times. Moody's expect the company to continue deleveraging in the next 12-18 months, primarily through EBITDA growth, bringing down its debt/EBITDA close to mid-4.0 times range. RATINGS RATIONALE Phoenix Guarantor Inc.'s B1 CFR reflects its significant scale, national footprint, diverse mix of businesses and strong market position. The CFR also benefits from a strong and growing underlying demand for home and community-based services for seniors and people with intellectual and developmental disabilities. PGI has an active M&A strategy, which Moody's expect will continue. This M&A strategy carries risk, including IT integration risk, though the company has demonstrated successful integration of prior acquisitions thus far. The company's CFR is constrained by moderately high financial leverage and a heavy reliance on government payors. Moody's expect PGI's debt/EBITDA to improve to the mid-4.0 times range over the next 12-18 months, down from 5.6 times (5.4 time proforma for community living business divestiture) at the end of September 30, 2024. The outlook is stable. Moody's expect PGI to reduce its financial leverage in the mid-4.0 times range in the next 12 to 18 months. Moody's also expect PGI to maintain its very good liquidity. PGI's good liquidity (SGL-1) reflects Moody's expectation that the company's liquidity will remain very good over the next 12 to 18 months. PGI's liquidity will be supported by a cash balance of nearly $36 million, positive free cash flow --partially driven by lower interest expense, and full access to the $475 million revolving credit facility. The company's credit facilities do not have any financial covenant (revolver springing covenant was removed in February 2024 amendment to the credit agreement). The company's assets are pledged as collateral for the secured credit facility, thereby limiting the sale of assets as an alternative source of liquidity. For all rated debt obligations, the borrowing entity is Phoenix Guarantor Inc. The borrowings are guaranteed by the parent company – Phoenix Intermediate Holdings, Inc – and all wholly-owned US restricted subsidiaries of Phoenix Guarantor Inc. The $475 million first lien revolver expiring in June 2028 and the approximately $2.6 billion first lien term loan B due in February 2031 are rated B1, in-line with the B1 CFR. This reflects first-lien debt representing the preponderance of debt in the capital structure. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if PGI exhibits strong organic growth in both the pharmacy solutions and provider services businesses. The ratings could be upgraded if the company demonstrates material margin expansion and strong free cash flow generation. Quantitatively, ratings could be upgraded if leverage were sustained below 4.0 times. The ratings could be downgraded if the company's operating performance deteriorates and margins contract. A shift to more aggressive financial policies could result in a ratings downgrade. The ratings could be downgraded if PGI experiences weakening liquidity, including soft free cash flow generation. Quantitatively, ratings could be downgraded if leverage were sustained above 5.0 times for an extended period. Phoenix Guarantor Inc., headquartered in Louisville, KY, is a leading home and community-based healthcare services platform, focused on delivering complementary pharmacy and provider services to complex patient population with significant lifelong and chronic health needs. The company's patient clientele primarily consists of seniors in multiple care settings and people of all age groups with intellectual/developmental disabilities. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. PHYSICIAN PARTNERS: Moody's Cuts CFR to 'Ca', Outlook Stable ------------------------------------------------------------ Moody's Ratings downgraded the ratings of Physician Partners LLC's (aka Better Health Group) including the Probability of Default Rating to D-PD from Caa2-PD, Moody's will upgrade the PDR to Caa3-PD in three business days. Moody's also downgraded the Corporate Family Rating to Ca from Caa2, the backed senior secured first lien credit facilities to C from Caa2. At the same time, Moody's assigned a Ca rating to the new backed first-out super priority senior secured first lien credit facilities, a C rating to the new second-out and third-out backed senior secured first lien super priority credit facilities. Better Health Group's outlook remains stable. The rating action follows a series of transactions including restructuring of Better Health Group's senior secured credit facilities. Moody's deem Better Health Group's transactions to be a distressed exchange as the loans were exchanged at a price below par, which is a default under Moody's definition. The ratings downgrade reflects Moody's view that Better Health Group's capital structure is unsustainable and that recovery rates for much of the company's debt will be low. Moody's consider the probability of a bankruptcy or major restructuring is high in the next three to five years given the cushion the current cash balance provides. The refinancing has increased the overall level of debt, and while the maturities have been extended, Better Health Group remains at risk of being unable to service its debt. The company's ongoing decline in profitability due to an increase in medical claims costs linked to higher utilization under the capitated plans. Further, Moody's expect that operating performance will continue to deteriorate given the continued phase-in of reimbursement changes for Medicare Advantage. Better Health Group has been working with payors to renegotiate contracts, but Moody's expect that the company's leverage to increase significantly as the company's earnings decline. Moody's forecasts Better Health Group will have negative free cash flow over the next 12-24 months. As a result, Better Health Group will need to draw on the revolver to continue to fund its operations beyond the next two years. Governance considerations are material to the rating action. Financial policy and risk management have contributed to the company's high financial leverage and ability to withstand the sector's headwinds. Additionally, Moody's consider the restructuring to be an aggressive move that has not resolved the underlying issue that there is too much debt, and instead added debt to the capital structure while maintaining loose financial covenants that would allow for additional draws under the revolving credit facility. The stable outlook reflects Moody's view that the likelihood of a default is high as the company's capital structure becomes unsustainable with declining earnings and profitability as well as negative free cashflow generation. RATINGS RATIONALE Better Health Group's Ca rating is constrained by deteriorating operating performance and very high leverage. Moody's forecast that leverage will increase in 2024 through 2026, due to higher medical claims costs associated with the capitated plans and lower reimbursement anticipated from the change in Medicare reimbursement risk models from V24 to V28. Better Health Group has reduced is expansion of new clinics in 2024 and is working with payors to renegotiate contracts, but has Better Health Group has been unable to decrease its costs sufficiently to prevent further erosion of profit margins. The company has moderate scale and geographic concentration in Florida. Geographic density can be beneficial as it offers members a strong network of physicians to meet their healthcare needs, but it also adds to economic risks and increasing competition. An inherent challenge within the company's business model is that it requires the company to aggressively manage the cost of patient care, because it earns revenue on a capitated basis from Medicare Advantage plan providers. Moody's anticipate that Better Health Group will maintain adequate liquidity over the next 12 months. This is supported by an undrawn $105 million committed first-out super priority revolving credit facility less LCs, about $200 million of pro forma cash as of LTM September 30, 2024. Moody's forecasts of Better Health Group will have negative free cash flow over the next 12-24 months. As a result, Better Health Group will continue to burn cash and will need to draw on the revolver to continue to fund its operations. Better Health Group's new $105 million first-out super priority revolving credit facility has a springing maximum first-out super priority net leverage covenant with step-downs over time, that springs at 35% utilization on the revolver. The revolver is not currently being used, and Moody's forecast that there will be sufficient cushion as the covenant only pertains to the first-out super priority liens. Alternate liquidity sources are limited as the company's assets are encumbered by the first lien credit facilities. The Ca ratings on the first-out super priority secured credit facilities ($105 million revolver, $282 million first-out super priority term loan) reflects its priority position in the waterfall. The C ratings on the remaining debt reflects Moody's expectation of limited recovery. Additionally, the ratings incorporate the increased risk of a default given the company remains under distress with continued phase-in of the reimbursement changes. Better Health Group's CIS-5 score indicates that the rating is lower than it would have been if ESG risk exposures did not exist and that the negative impact is more pronounced than for issuers scored CIS-4. Primary drivers of the CIS-5 include governance risks (G-5), driven by the company's aggressive financial policies and high financial leverage. The score also reflects exposure to social risks (S-5), most notably, risks related to demographic and societal trends such as the rising concerns around the access and affordability of healthcare services. The company is also exposed to labor pressures including wage inflation. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded if Better Health Group substantially improves operating performance, profitability, and materially reduces leverage to a more sustainable level. Better Health Group will also need to demonstrate a track record of effectively managing its cost structure and its aggressive growth strategy. An improvement in liquidity could also lead to an upgrade. The ratings could be downgraded if Better Health Group experiences any additional operating setbacks that materially weaken earnings or if liquidity further deteriorates. Further, rising likelihood of debt impairment would also lead to a rating downgrade. Better Health Group is a value-based primary care physician group and managed service organization (MSO) network that services over 260,000 members, with over 1,200 providers and 148 owned centers. Private equity firm, Kinderhook Industries, is an investor in Better Health Group with LTM revenue as of September 30, 2024 of approximately $1.4 billion. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. PPGE ALAMO: To Sell Quality Inn Hotel to Patel Capital for $3.6MM ----------------------------------------------------------------- PPGE Alamo, LLC, seeks permission from the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division, to sell hotel property, free and clear of all interests. The Debtor owns the Quality Inn hotel located at 1025 S. Frio St. San Antonio, Texas 78207, its adjoining 3/4 acre of land, and all the Quality Inn hotel's furnitures, fixtures, and equipment (FF&E). The Debtor entered into a purchase and sale agreement with Patel Capital Groups, LLC for the Hotel, all FF&E, and the adjoining real estate for $3.6 million. While the contract is for $3.6 million, it effectively is for only $3.3 million because the agreement requires $300,000 be paid to Buyer's broker. Additionally, the Debtor's loan has an Small Business administration (SBA) guarantee; hence, the SBA has an interest in the real estate, and there is an SBA EIDL second lien against the hotel's FF&E. Two other potential purchaser for hotel, Relianse Ford LLC of 1600 Red Bud Blvd., McKinney, Texas 75069 executed a contract to purchase the hotel and adjoining property for $3.5 million but never escrowed the deposit, while Good Homes of 880 Third Avenue, New York, NY, 10022 executed a contract to purchase the hotel and adjoining property for $3.6 million but then cancelled the contract during their diligence period. The property is currently encumbered by several debts. The following debts are listed in what Debtor believes is the correct order of priority. a. Bexar County filed a claim for current ad valorum taxes in the amount of $94,130.01; b. TaxCore Lending, LLC filed a secured claim for $392,637.15 for prior ad valorum taxes; c. Promise One Bank filed a secured claim for $3,277,972.49 for its mortgage lien; d. Regions Bank, d/b/a Ascentium filed a claim for $5489.77, which was a purchase money security interest in the hotel’s phone system secured by UCC filing Document Number 905602210001; e. The Small Business Administration filed a secured claim for $90,863.26 for an EIDL loan; and f. Comptroller of Public Accounts filed a secured claim for $43,261.90 and the City of San Antonio filed a secured claim for $116,378.97 both for Hotel Occupancy Tax. The Debtor proposes the sale of the Property be "free and clear" of interests to the fullest extent. The Debtor also contends that the sale is in the best interest of the estate and its creditors. About PPGE Alamo, LLC PPGE Alamo, LLC is a hotel operator in Sugarland, Texas. PPGE Alamo, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-51143) on June 20, 2024, listing $4,054,391 in assets and $4,480,906 in liabilities. The petition was signed by Zameer Upadhya as manager. Judge Craig A. Gargotta presides over the case. Ronald Smeberg, Esq. at THE SMEBERG LAW FIRM represents the Debtor as counsel. PRAIRIE ACQUIROR: Moody's Affirms 'B1' CFR, Outlook Negative ------------------------------------------------------------ Moody's Ratings affirmed Prairie Acquiror LP's (Prairie) B1 Corporate Family Rating, B1-PD Probability of Default Rating, B3 backed senior secured term loan rating and B3 senior secured notes rating. Moody's also affirmed Tallgrass Energy Partners, LP's (TEP) B1 senior unsecured notes rating. At the same time Moody's affirmed Rockies Express Pipeline LLC's (REX) Ba2 senior unsecured notes rating and withdrew REX's Ba2 CFR and Ba2-PD PDR. The rating outlook for Prairie, TEP and REX remains negative. The withdrawal of REX's CFR stems from wholly-owned Prairie subsidiary TEP's June 2024 buyout of the 25% interest in REX it didn't already own from joint venture partner Phillips 66 Co., resulting in TEP owning 100% of the common membership interest in REX. The transaction was funded via an $800 million preferred equity issuance by REX to affiliates of Prairie's ownership group. Moody's treat the preferred instrument as equity in Moody's calculations of financial metrics, however Moody's consider the economic impact of distributions and TEP's ability to redeem the preferred at any time when assessing the credit profiles of REX and TEP. RATINGS RATIONALE Prairie's B1 CFR is constrained by the company's high consolidated financial leverage, including debt at subsidiaries TEP and REX. Prairie benefits from its meaningful size, its predominantly interstate pipeline asset base with cash flow from long-term firm transportation contracts, and geographic and operational diversification. Borrowing to fund the majority of its approximately $1.7 billion Trailblazer CO2 conversion project is expected to cause Prairie's leverage to exceed Moody's downgrade threshold in 2025. The project will have significant uncontracted capacity initially with the ample opportunity to grow its volumes at attractive returns. Still, the very high leverage and the project's execution risk leave little margin for delays, overruns or underperformance. Prairie's financial sponsors include Blackstone Infrastructure Partners, and the ratings incorporate governance considerations including the sponsors aggressive financial policies with respect to financial leverage. REX's senior unsecured notes are rated Ba2, two notches better than Prairie's B1 CFR, due to their structural advantage over the rest of the debt in the Prairie family, with a structurally senior claim to the REX pipeline, related assets and the benefits of its long-term customer contracts. TEP's senior unsecured notes are rated B1, which Moody's views as more appropriate than the rating indicated by Moody's Loss Given Default Methodology model. Although the TEP notes are structurally subordinated to its $1.5 billion senior secured revolving credit facility (unrated), which has a senior secured priority claim to TEP's assets, the notes are in a structurally superior position within the capital structure and have a priority claim to TEP's assets, including its equity ownership in REX, compared to Prairie's $1.05 billion senior secured term loan and $400 million senior secured notes. Given the complexity of the capital structure, changes in the amount or mix of secured and unsecured debt at REX or TEP could affect the REX and TEP notes ratings. Prairie's term loan and notes are rated B3, two notches below the CFR reflecting their structural subordination to TEP's and REX's debt. The term loan and notes are secured by Prairie's equity ownership interests in TEP and its General Partner and are the most junior debt in the capital structure. Moody's expect Prairie to maintain adequate liquidity through mid-2026. TEP has a $1.5 billion senior secured revolving credit facility that expires the earliest of May 31, 2028, November 27, 2026, if any of TEP's 6% senior notes due March 2027 remain outstanding on that date or October 15, 2027, if any of TEP's 5.50% senior notes due January 2028 remain outstanding on that date. The revolver had $132 million outstanding as of September 30, 2024. REX has a $170 million unsecured revolving credit facility that expires in July 2028. At September 30, 2024 the REX revolver had $32 million drawn. TEP's cash flow from operations will be sufficient to meet working capital needs, maintenance capital spending, and debt servicing. Moody's expect TEP to fund its substantial 2025 growth spending largely with debt. Prairie's term loan has amortization of 1% per annum and an excess cash flow sweep. The term loan also requires the company to maintain a stand-alone Prairie debt service coverage ratio in excess of 1.1x. The TEP revolver contains three financial covenants including a maximum debt/EBITDA of 5.5x, a senior secured leverage covenant of 3.5x, and a minimum EBITDA/interest of 2.5x (all covenants determined at the TEP level, excluding Prairie and REX debt); the Prairie term loan requires 1.1x debt service coverage, and; the REX revolver has a debt/EBITDA covenant of 5x. Moody's expect all three entities will maintain sufficient headroom for compliance with these covenants. REX's May 2025 $400 million senior notes issue is the only debt maturity within the complex coming due in 2025 or 2026. Moody's expect this maturity to be addressed in the normal course. The negative outlook reflects the increased debt and related execution risks of Tallgrass' $1.7 billion project to convert a portion of its Trailblazer natural gas pipeline to a CO2 pipeline and build out supporting infrastructure for a carbon capture and sequestration system. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be downgraded if Prairie's consolidated debt/EBITDA is sustained above 7.5x and does not decline as projected following the completion of the Trailblazer CO2 conversion project, the project incurs material delays or cost overruns, or distribution policy becomes more aggressive. Although unlikely in the near term, an upgrade would be considered once consolidated debt/EBITDA is maintained below 7x. Prairie, through its ownership of TEP, provides crude oil transportation, natural gas transportation and storage, processing and water business services for customers in the Rocky Mountain, Appalachian, Midwest, and West Coast regions of the United States. The principal methodology used in rating Prairie Acquiror LP and Tallgrass Energy Partners, LP was Midstream Energy published in February 2022. PREMIER DATACOM: Files Emergency Bid to Use Cash Collateral ----------------------------------------------------------- Premier Datacom, Inc. asked the U.S. Bankruptcy Court for the Western District of Texas, Austin Division, for authority to use cash collateral. The company requires the use of cash collateral to fund working capital, general corporate purposes, and administrative costs and expenses of the company incurred in the chapter 11 cases. Prior to the petition date, Premier Datacom, as borrower, and BayFirst National Bank, formerly known as First Home Bank, as lender entered into a loan agreement in order to fund the company's operations. BayFirst asserts that it is owed a total of $104,753 as of the petition date. Also Prior to the petition date, Premier Datacom, as borrower, and Five Star Bank, as lender entered into a loan agreement in order to fund the the company's operations. As of the Petition Date, Five Star asserts that it is owed a total of $207,797. The Lenders are being adequately protected by the interim relief to justify the company's use of cash collateral through the provision of replacement liens in post-petition acquired property, including cash, to the same extent, validity, and priority as existed prepetition. The replacement liens will adequately protect the Lenders and ensure that the business can continue operating to the benefit of all stakeholders. BayFirst can be reached through its counsel: Matthew T. Taplett, Esq. Pope, Hardwicke, Christie, Schell, Kelly & Taplett, L.L.P. 500 West 7th Street, Suite 600 Fort Worth, TX 76102 Telephone: (817) 332-3245 Facsimile: (817) 877-4781 Email: mtaplett@popehardwicke.com Five Star Bank can be reached through its counsel: Michael P. Menton, Esq. Danika Lopez, Esq. SettlePou 3333 Lee Parkway, Eighth Floor Dallas, TX 75219 (214) 520-3300 (214) 526-4145 (Facsimile) mmenton@settlepou.com dlopez@settlepou.com About Premier Datacom Inc. Premier Datacom, Inc. is a technology construction services company specializing in low voltage cabling systems and components, data transmission, and security systems. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-10097-smr) on January 24, 2025. In the petition signed by Glenn Ryan Willis, president, the Debtor disclosed up to $10 million in both assets and liabilities. Jennifer F. Wertz, Esq., at Jackson Walker L.L.P., represents the Debtor as legal counsel. RADIOLOGY PARTNERS: Moody's Alters Outlook on Caa1 CFR to Positive ------------------------------------------------------------------ Moody's Ratings revised Radiology Partners, Inc.'s outlook to positive from stable. At the same time, Moody's affirmed Radiology Partners' Caa1 corporate family rating and Caa1-PD probability of default rating. Moody's also affirmed the B1 rating on the $240 million backed senior secured first lien revolving credit facility, B3 ratings on the backed senior secured first lien term loan B, $150 million backed senior secured revolving credit facility and senior secured first lien global notes due 2029, the Caa3 ratings on the senior secured global notes due 2025, senior unsecured global notes due 2028, and senior secured second lien global notes due 2030. The revision of the outlook from stable to positive reflects ongoing deleveraging following the recapitalization in February 2024 and improved liquidity. Moody's expect debt to EBITDA, which was 7.5x at September 30, 2024, to trend toward 7.0x over the next 12 to 18 months. The outlook also reflects Moody's expectation that Radiology Partners will continue to generate positive free cash flow, although with quarterly fluctuations due to normal seasonality. The affirmation of the Caa1 CFR reflects Radiology Partners high financial leverage mitigated by its very good liquidity and leading position in a fragmented market as the largest radiology practice in the United States. RATINGS RATIONALE Radiology Partners' Caa1 CFR reflects the company's high financial leverage and very good liquidity. The rating also reflects risks tied to the company's aggressive growth strategy. The rating is also constrained by ongoing risks tied to working capital pressure from the No Surprises Act, including uncertainty surrounding timing of receivables collection from out of network payors. The rating is supported by Radiology Partners' position in a fragmented industry as the largest radiology practice in the US, diversification by geography and customer type, stable business prospects, and favorable payor mix. The company's debt/EBITDA was approximately 7.5 times for the twelve months ending September 30, 2024 on an adjusted basis. Moody's expect the company's leverage will decline toward 7.0x over the next 12-18 months due to EBITDA growth from new business wins, ongoing pricing initiatives, and organic volume growth. Deleveraging will be slowed by an increase in debt tied to PIK interest. Moody's expect Radiology Partners will maintain very good liquidity. Radiology Partners had $185 million of cash at September 30, 2024 and $387 million of availability under its $390 million revolving credit facilities. Moody's expect approximately $100 million of free cash flow in 2025 which reflects the PIK interest benefit, lower use of working capital, and reduced new site start-up costs. Radiology Partners' revolving credit facility has a maximum first lien net leverage covenant of 7.75x. Moody's expect the company will maintain sufficient buffer within the covenant. Moody's estimate first lien net leverage was approximately 3.9x at September 30, 2024. Radiology Partners' assets are pledged as collateral for the secured credit facilities, thereby limiting the sale of assets as an alternative source of liquidity. The B1 rating of the $240 million backed senior revolving credit facility reflects its senior position in the capital structure, such that these lenders would be repaid in full before any distributions to the other secured lenders. The B3 ratings assigned to the backed senior secured first lien term loan, $150 million backed first lien revolving credit facility, and senior secured first lien global notes is two notches lower than the B1 on the super senior facility, and one notch higher than the Caa1 CFR. This reflects the instruments' effective subordination to the super senior debt as well as its second priority lien on substantially all assets and the loss absorption provided by junior debt. The Caa3 rating assigned to the second lien global notes is two notches below the CFR. This reflects the effective subordination of the second lien notes to all of the more senior secured debt. The Caa3 ratings on the non-exchanged senior secured global notes due 2025 and senior unsecured notes due 2028 reflects their subordinated rankings to all exchanged debt tranches in the payment waterfall. The positive outlook reflects Moody's view that debt to EBITDA will trend toward 7.0x over the next 12 to 18 months, free cash flow will be positive and liquidity will remain very good. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Radiology Partners maintains leverage below 7.5x while maintaining overall good liquidity. Specifically, ratings could be upgraded if Radiology Partners demonstrates the ability to generate sustainable and materially positive free cash flow outside of normal seasonality. The ratings could be downgraded if the company's liquidity and/or operating performance deteriorates or if financial policies become more aggressive. Moody's would also consider a downgrade if for whatever reason financial leverage increases or the probability of default increases. Headquartered in El Segundo, CA, Radiology Partners, Inc. is the largest radiology practice in the US The company's services include diagnostic and interventional radiology. Radiology Partners, Inc. employs more than 3,900 radiologists that provide services to more than 3,400 hospitals and outpatient facilities across all 50 states. Ahead of the preferred equity issuance in February 2024, the company was 19.6% owned by New Enterprise Associates, 10.0% by Future Fund, 31.6% by Whistler and the rest by physicians, management and other investors. The company's LTM revenues were approximately $3.0 billion as of September 30, 2024. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. REDLINE METALS: Court OKs Limited Use of Cash Collateral -------------------------------------------------------- Redline Metals, Inc. obtained an order from the U.S. Bankruptcy Court for the Northern District of Illinois approving the limited use of Old Second National Bank's cash collateral. The order signed by Judge Jacqueline Cox on Feb. 4 authorized the company to use cash collateral strictly for "prospective or current necessary payments" to preserve its assets and complete the public sale of those assets. Old Second National Bank, a senior secured creditor, is under no obligation to advance funds or to honor checks without sufficient funds upon presentation, according to the Feb. 4 order. Judge Cox's previous order issued on Jan. 28 allowed the company to use cash collateral to cover payroll and payroll expenses through Feb. 4. Both orders terminated the use of cash collateral to operate Redline Metals' business. Old Second National Bank was granted replacement liens on assets in which it held a security interest and lien as of the petition date as protection for any diminution in the value of its pre-bankruptcy collateral. Redline Metals' authority to use cash collateral terminates upon closing of the public sale or upon revocation by the bank. The motion for use of cash collateral is continued until Feb. 11. About Redline Metals Redline Metals, Inc. is a recycling center in Lombard, Ill. Redline Metals filed Chapter 11 petition (Bankr. N.D. Ill. Case No. 24-12590) on Aug. 27, 2024, with $10 million to $50 million in both assets and liabilities. Judge Jacqueline P. Cox oversees the case. The Debtor is represented by: Paul M. Bach, Esq. Bach Law Offices Tel: 847-564-0808 Email: paul@bachoffices.com REVITALIZE PORTLAND: Claims to be Paid from Property Sale/Refinance ------------------------------------------------------------------- Revitalize Portland, LLC filed with the U.S. Bankruptcy Court for the District of Oregon a Second Amended Disclosure Statement describing Plan of Reorganization dated January 27, 2025. Revitalize was started by Michael Smira in 2014 to renovate property to rent or sell. The Debtor purchased the Gibbs Property in 2015 and has been renovating it since then. Revitalize's debt has come due and a foreclosure by the first trust deed holder was stayed by the bankruptcy filing. Debtor's only other debt is a second trust deed and promissory note of $200,000 and a third trust deed and promissory note of $25,000.00. Revitalize has been operating on money contributed by owner Michael Smira. After confirmation Mr. Smira will put another $30,000 to $40,000 into Debtor to complete the remodel of the Gibbs Property. On or before May 15, 2025, Debtor will sell or refinance the Gibbs Property to pay all creditors in full. In particular, if the plan is confirmed, holders of allowed claims will receive 100% of their allowed claim plus interest. The payment to creditors will come from Debtor's sale or refinancing of its property located at 15 S. Gibbs St., Portland, OR 97239 (the "Gibbs Property"). Debtor's member will put sufficient capital into Debtor to restore the property so it can be sold or refinanced. Debtor estimates the amount necessary will be approximately $30,000 to $40,000. The administrative claims consisting of Debtor's attorney fees and expenses will be paid either from the retainer still held by the attorney totaling $19,046.25 or from the sale or refinance f Debtor's property. Currently the total unpaid attorney's fees equal $8,981.50. It is estimated an additional $7,500.00 will be incurred through confirmation. Class 2 consists of the Secured Claim of Multnomah County (the "County") for unpaid property taxes pursuant to its statutory lien is an undisputed, allowed claim, and the lien of the County shall be preserved, and shall receive the treatment required under Oregon law upon any sale of the Gibbs Property, including: ORS 311.405 whereby all property taxes levied upon the Gibbs Property by the County prior to and after the petition date are first priority liens upon the property, which must be fully paid and satisfied prior to any other claims of creditors following a sale of the Gibbs Property, including interest at 16% per annum, together with penalties and costs, if any. Further, the County's lien for unpaid property taxes has priority over, and must be fully satisfied from, the proceeds of sale of the Gibbs Property before all other liens, judgments and claims against the Gibbs Property pursuant to ORS 311.505; and Upon a sale of the Gibbs Property, the Class 2 claim of Multnomah County will be paid from the escrow funds following closing of a sale of the property. Payment of the County's claim may be by check or wire transfer from escrow. Class 6 General Unsecured Creditors. All general unsecured creditors will be paid in full from the sale or refinance of the Gibbs property. The Plan will be funded by sale or refinance of the Gibbs Property. After confirmation Debtor's owner will contribute $30,000 in new value, or whatever amount is necessary, to complete the remodel of the Gibbs Property. A full-text copy of the Second Amended Disclosure Statement dated January 27, 2025 is available at https://urlcurt.com/u?l=uTDdlj from PacerMonitor.com at no charge. Counsel to the Debtor: Ted A. Troutman, Esq. Troutman Law Firm P.C. 5075 SW Griffith Dr., Suite 220 Beaverton, OR 97005 Telephone: (503) 292-6788 Facsimile: (503) 596-2371 About Revitalize Portland Revitalize Portland, LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ore. Case No. 24-32356) on Aug. 26, 2024, listing up to $1 million in both assets and liabilities. Judge Teresa H. Pearson oversees the case. Ted A. Troutman, Esq., at Troutman Law Firm PC serves as the Debtor's counsel. RIGHT SIZE: Gets Final OK to Use Cash Collateral ------------------------------------------------ Right Size Plumbing & Drain Co Inc. received final approval from the U.S. Bankruptcy Court for the Central District of California to use the cash collateral of the U.S. Small Business Administration. As protection, the final order granted the SBA a replacement lien, effective as of the petition date, on all post-petition revenues of the company to the same extent, priority and validity as its pre-bankruptcy lien. As additional protection, the SBA will receive a monthly payment of $1,135 until further order of the court. The court order does not authorize the company to use cash collateral to pay insiders unless and until it has satisfied all requirements under the Bankruptcy Code and Local Bankruptcy Rule 2014-1. About Right Size Plumbing & Drain Co Right Size Plumbing & Drain Co Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-11886) on November 11, 2024, with up to $500,000 in assets and up to $10 million in liabilities. David E. Jones, president of Right Size, signed the petition. Judge Victoria S. Kaufman oversees the case. The Debtor is represented by: Michael Jay Berger, Esq. Email: 310-271-6223 Email: michael.berger@bankruptcypower.com RIVERBED HOLDINGS: Moody's Assigns 'Caa1' CFR, Outlook Stable ------------------------------------------------------------- Moody's Ratings assigned a Caa1 corporate family rating and Caa1-PD probability of default to Riverbed Holdings, Inc. (Vector Capital), (Riverbed). Moody's also assigned a Caa1 rating to the senior secured first lien revolving credit facility and senior secured first lien term loan under Riverbed Technology LLC. The outlook is stable. Riverbed was acquired by Vector Capital, a private equity firm, in July 2023. As part of the acquisition, the company's existing $1 billion term loan was restructured to a $375 million term loan, which includes PIK features. The $375 million term loan and undrawn $30 million revolving credit facility mature July 2028 and April 2028 respectively. RATINGS RATIONALE Riverbed's Caa1 CFR is driven by persistent revenue declines, elevated leverage, and Moody's expectation for breakeven to negative free cash flow. Although Riverbed has significantly reduced its debt load, revenues in the company's WAN Optimization (WANOp) business (about 40% of 2024 sales) continues to decline at double digit rates. Demand within WANOp is in secular decline as the transition to SD-WAN architectures has significantly reduced the need for WANOp products in all but a few end markets. Riverbed retains a leading position in the WANOp market despite the upheaval in the networking industry. The company also has a leading position in the on-premise network performance monitoring (NPM) software market, and a strong position in the fast-growing End User Experience Management (EUEM) market. Although Riverbed has solid positions in these markets, it still significantly lags industry revenue growth rates. Riverbed's application and network monitoring product lines have the potential to offset the declines in the legacy WANOp lines, though the timing of any stabilization of revenues remains uncertain. Financial leverage for the period ended September 30, 2024 is near 6x (Moody's adjusted, including the impact of restructuring charges). Moody's anticipate revenue declines to persist, but moderate through 2025. Moody's base case assumes leverage will increase to over 7x in 2025 driven by declines in EBITDA and increase in PIK debt. Moody's believe revenue will need to stabilize to grow profitability and decrease leverage. Liquidity is adequate, which reflects Moody's expectation of breakeven to negative free cash flow over the next year. Cash balances are $52 million as of September 30, 2024. The company has full access to a $30 million revolving credit facility (excluding about $7 million of letters of credit) that does not contain any financial covenants. STRUCTURAL CONSIDERATIONS The Caa1 ratings on the $30 million revolving credit facility and $375 million term loan are in line with the Caa1 corporate family rating, which reflects the preponderance of the first lien senior secured debt in the capital structure. OUTLOOK The stable outlook reflects Moody's view that Riverbed has sufficient liquidity over the next 12-18 months, providing headroom for the company to stem revenue declines and increase profitability. This also considers the uncertainty regarding the timing of revenue stabilization. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company stabilizes its operating performance, generates positive free cash flow, and maintains at least adequate liquidity. The ratings could be downgraded if the trajectory of revenue and margin improvements does not materialize such that free cash flow deficits are anticipated to continue pressuring liquidity, and reducing financial flexibility. ESG CONSIDERATIONS Riverbed's ESG credit impact score (CIS-5) reflects governance risks, which are a ratings driver. Governance risks arise from controlled ownership, elevated financial leverage and limited free cash flow. While the reorganized business under Vector Capital will continue to focus on reviving growth and improving the valuation of the business, Moody's expect leverage to remain high and cash flow weak. Headquartered in Redwood City, CA, Riverbed is a leading provider of Wide Area Network (WAN) Optimization and performance and application monitoring products and services. Moody's estimate revenue for 2024 to be $365 million. The principal methodology used in these ratings was Software published in June 2022. RUSH INC: Seeks Subchapter V Bankruptcy in Illinois --------------------------------------------------- On February 3, 2025, Rush Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Illinois. According to court filing, the Debtor reports $2,241,538 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Rush Inc. Rush Inc. is involved in the transportation and logistics industry. Rush Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. ) on February 3, 2025. In its petition, the Debtor reports total assets of $547,000 and total liabilities of $2,241,538. Honorable Bankruptcy Judge David D. Cleary handles the case. The Debtor is represented by David Freydin, Esq., at LAW OFFICES OF DAVID FREYDIN, in Skokie, Illinois. SAVAGE ENTERPRISES: Moody's Affirms 'B1' CFR, Outlook Stable ------------------------------------------------------------ Moody's Ratings affirmed Savage Enterprises, LLC's ("Savage") B1 corporate family rating, B1-PD probability of default rating and B1 senior secured bank credit facility rating and maintained the stable outlook. RATINGS RATIONALE The ratings reflect Savage's strength as a sizable grain processor and its scale and scope within the agriculture business. These advantages have fostered long-standing customer relationships with food producers that have been developed over many years as an integral partner in their supply and distribution chains. Additionally, the company's infrastructure business has been a source of strong contract volumes in the rail and transload terminals segment and generate a much higher margin. Further, Savage has demonstrated a solid track record of debt reduction and Moody's do not expect the company to operate with high financial leverage given its exposure to cyclical and competitive markets. However, the agribusiness adds risk due to grain demand fluctuations and cross-border risk, with the majority of its shipments destined for the Mexican market. Given the highly fragmented and cyclical nature of the industry, Moody's expect the company to make acquisitions or investments in storage and grain handling facilities as opportunities to consolidate occur. The company completed a $430 million investment to construct a new grain crushing facility in the third quarter of 2024 and Moody's expect the new facility to be fully revenue generating in 2025. Consequently, Moody's expect debt-to-EBITDA to improve to about 4.0x in 2025, down from its peak of 5.8x on September 30, 2024. Moody's view Savage's liquidity as adequate. Moody's expect Savage will generate slightly negative free cash flow over the next 12 months, as it continues to invest in working capital and capital expenditures to meet heightened demand. The company has a $650 million asset-based lending (ABL) revolver and is expected to maintain a modest cash balance. The ABL had about $433 million available as of December 31, 2024, based on its borrowing base and net of letters of credit. The stable outlook reflects modest acquisition risk along with Moody's expectation of improving profitability and adequate liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Savage is able to demonstrate reduced cyclicality through diversification and maintain debt-to-EBITDA below 3.5x. This needs to be done in conjunction with growing its revenue base and improving liquidity, including generating positive free cash flow, to support the increased working capital needs of its agribusiness. The ratings could be downgraded if Savage's operating performance weakens, including a deterioration in liquidity due to sustained negative free cash flow or increased reliance on the revolver. Also, should debt-to-EBITDA be sustained above 5.0x, the ratings could be downgraded. Lastly, a more aggressive financial policy, including large debt funded acquisitions or shareholder distributions that increase leverage could also result in a downgrade. Savage Companies, through its principal operating subsidiary Savage Enterprises, LLC, is a grain and milling business focused on the acquisition, storage, transportation, processing and merchandising of grain and a leading exporter of grain to Mexico from the US. Additionally, Savage operates a transport and logistics company providing a range of services, including materials handling, waste disposal and transportation to industrial and rail customers. Revenue was approximately $4.3 billion for the twelve months ended Sept. 30, 2024. The principal methodology used in these ratings was Surface Transportation and Logistics published in December 2021. SBF VENTURES: Seeks Chapter 11 Bankruptcy in Massachusetts ---------------------------------------------------------- On February 3, 2025, SBF Ventures LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Massachusetts. 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 SBF Ventures LLC SBF Ventures LLC is a limited liability company. SBF Ventures LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No.: 25-10217) on February 3, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Christopher J. Panos handles the case. The Debtor is represented by: Gary W. Cruickshank, Esq. GARY W. CRUICKSHANK 101 Federal Street, Suite 1900 Boston, MA 02110 Tel: 617-330-1960 Email: gwc@cruickshank-law.com SEASONAL LANDSCAPE: Court Extends Cash Collateral Access to Feb. 28 ------------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois extended Seasonal Landscape Solutions, Inc.'s authority to use cash collateral from Jan. 31 to Feb. 28. The interim order authorized the company to use cash collateral in accordance with its budget, which projects total operational expenses of $141,537 from Feb. 1 to 28. The company is not allowed to make any payments or distributions other than the itemized projected disbursements set forth in the budget without the prior written consent of its pre-bankruptcy secured lender. BMO Harris Bank holds a senior lien on the company's assets totaling at least $495,000, with a subordinate lien by the U.S. Small Business Administration. As adequate protection, BMO Harris Bank was granted a replacement lien on substantially all of the company's assets, including cash collateral equivalents, cash and accounts receivable, to the same extent and with the same validity as its pre-bankruptcy lien. In addition, BMO Harris Bank was granted an administrative expense claim under Section 507(b) of the Bankruptcy Code. The next hearing is scheduled for March 5. About Seasonal Landscape Solutions Seasonal Landscape Solutions, Inc. is a company in Algonquin, Ill., which specializes in residential design-build landscaping. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-08880) on June 17, 2024, with $500,000 to $1 million in assets and $1 million to $10 million in liabilities. Ira Bodenstein serves as Subchapter V trustee. Judge Janet S. Baer presides over the case. The Debtor is represented by: Richard G Larsen Springer Larsen Greene, LLC Tel: 630-510-0000 Email: rlarsen@springerbrown.com SOUTHERN AUTO: Gets Interim OK to Use Cash Collateral Until Feb. 10 ------------------------------------------------------------------- Southern Auto Parts, Inc. received interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina, New Bern Division, to use cash collateral until Feb. 10. The interim order signed by Judge David Warren on Feb. 5 authorized the company to use cash collateral to pay post-petition operating expenses set forth in its budget. The creditors that assert an interest in the company's cash collateral are General Parts Distribution, LLC, Carolina Small Business Development Fund, United States Small Business Administration, House-Hasson Hardware Company, and First-Citizens Bank & Trust Company. As protection, the creditors were granted post-petition lien and security interest in all property of Southern Auto Parts with the same priority as their pre-bankruptcy lien and security interest. As additional protection, First-Citizens, the current holder of several loans, will be granted a superpriority administrative expense claim to the extent the use, sale, or lease of its collateral results in a decrease in its interest therein. The next hearing is set for Feb. 10. About Southern Auto Parts, Inc. Southern Auto Parts, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-00294-5-DMW) on January 27, 2025. In the petition signed by Jared L. Beverage, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge David M. Warren oversees the case. Joseph Z. Frost, Esq., at BUCKMILLER & FROST, PLLC, represents the Debtor as legal counsel. STEWARD HEALTH: Latham Defends Bankruptcy Efforts Amid TRACO Issues ------------------------------------------------------------------- Angelica Serrano-Roman of Bloomberg Law reports that Latham & Watkins LLP has argued that the U.S. Department of Justice's bankruptcy watchdog has no legitimate reason to oppose its retention in Steward Health Care System LLC's Chapter 11 case. This filing follows the U.S. Trustee's objection to the bankrupt hospital system's request to add Latham as co-counsel alongside Weil Gotshal & Manges LLP. Latham emphasized that it is not questioning the adequacy of Weil's representation, but rather challenging the U.S. Trustee's argument that Latham's retention is unnecessary and unduly burdensome. The response was submitted on Monday to the U.S. Bankruptcy Court for the Southern District of Texas. In a separate filing, Latham attorney Ray C. Schrock revealed that he and colleague Candace M. Arthur are unable to represent Steward on matters related to TRACO International Group, a non-bankrupt insurer affiliate, due to TRACO's refusal to grant a waiver. Schrock and Arthur, who recently joined Latham from Weil, were previously part of the team advising Steward and its subsidiaries, including Tailored Risk Assurance Company and TRACO. Steward's retention application identified their involvement as crucial to the Chapter 11 case. As of August 2024, TRACO is no longer represented by Weil, having retained Steptoe LLP instead, the report states. Last 2024, TRACO filed a lawsuit against Steward, accusing it of withholding payments, including $3.5 million in monthly insurance premiums. Schrock noted that TRACO has expressed a preference for excluding him and Arthur from representing Steward in any matters concerning TRACO, according to report. Despite the waiver refusal, Schrock affirmed that Latham's retention does not present any conflict of interest or affect its status as a disinterested party in the bankruptcy. Weil will handle any issues related to TRACO. Additionally, Latham has set up an internal ethical wall to prevent any conflicts involving TRACO-related matters, the report relays. The U.S. Trustee had previously opposed Latham's retention, arguing that Steward cannot afford the fees of another large firm, given Weil's nearly $70 million in legal fees. Latham responded by highlighting that Schrock and Arthur contributed 2,000 hours of legal services during the bankruptcy at Weil, and their continued involvement would benefit the company. About Steward Health Care Steward Health Care System LLC owns and operates the largest private physician-owned for-profit healthcare network in the U.S. Headquartered in Dallas, Texas, Steward's operations include 31 hospitals in eight states, approximately 400 facility locations, 4,500 primary and specialty care physicians, 3,600 staffed beds, and nearly 30,000 employees. Steward Health Care provides care to more than two million patients annually. Steward and 166 affiliated debtors filed a Chapter 11 petitions (Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024, in the U.S. Bankruptcy Court for the Southern District of Texas, and the Honorable Christopher M. Lopez oversees the proceeding. Weil, Gotshal & Manges LLP is serving as the Company's legal counsel. AlixPartners, LLP is providing financial advisory services to the Company, and John Castellano of AlixPartners is serving as the Company's Chief Restructuring Officer. Lazard Freres & Co. LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc Capital Markets Inc. are providing investment banking services to the Company. McDermott Will & Emery is special corporate and regulatory counsel for the company. Kroll is the claims agent. The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee is represented by Akin Gump Strauss Hauer & Feld, LLP. TEAK DECK: Gets Interim OK to Use Cash Collateral Until Feb. 20 --------------------------------------------------------------- Teak Deck Co. received interim approval from the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, to use cash collateral until Feb. 20. The U.S. Small Business Administration may claim a secured lien interest in all of the company's assets including the company's cash and accounts receivable by virtue of the filing of a UCC-1 on July 26, 2020. However, SBA agreed to and entered into a subordination agreement with JPMorgan on Jan. 17, 2023. Ergo there is no collateral support for its loan and the company contends it has no cash collateral interest. There is an approximate outstanding balance of $500,000 owed on that loan. On June 23, 2023, JPMorgan filed a subsequent UCC-1 alleging blanket liens on the same assets. It assumed first position due to the subordination. Therefore, as of the filing date, JPMorgan, which is owed approximately $151,000, has collateral support in the amount of approximately $50,000, representing all assets other than encumbered vehicles, and includes about $10,000 in accounts receivable and $5,700 in cash. A copy of the company's motion and budget is available at https://urlcurt.com/u?l=DuiZ9M from PacerMonitor.com. Teak Deck projects total expenses, as follows: $43,373 for February, $41,635 for March, and $37,817 for April. About Teak Deck Co. Teak Deck Co. sells retail deck products and installs teak decking. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10818-MAM) on January 27, 2025. In the petition signed by Joonas Tuomela, president, the Debtor disclosed up to $100,000 in assets and $10 million in liabilities. Julianne Frank, Esq., at Julianne Frank P.A., represents the Debtor as legal counsel. TECIAS CHILDCARE: Sec. 341(a) Meeting of Creditors on March 5 ------------------------------------------------------------- On January 29, 2025, Tecias Childcare LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of New York. According to court filing, the Debtor reports between $100,000 and $500,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on March 5, 2025 at 2:00 PM. Call-In Number: 877-716-9137, Passcode: 1402861#. BY TELEPHONE. About Tecias Childcare LLC Tecias Childcare LLC, doing business as Shining Stars Childcare Center, operates childcare facility in Rochester, New York. Tecias Childcare LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.N.Y. Case No. 25-20077) on January 29, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Warren handles the case. The Debtor is represented by: David H. Ealy, Esq. Cristo Law Group LLC d/b/a Trevett Cristo 45 Exchange Blvd., Suite 888 Rochester, NY 14614 Phone: 585-454-2181 TEMPLETON REAGAN: Sec. 341(a) Meeting of Creditors on February 28 ----------------------------------------------------------------- On January 31, 2025, Templeton Reagan Puritan Mill LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Georgia. According to court filing, the Debtor reports $1,213,123 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 February 28, 2025 at 03:00 PM via Telephone conference. To attend, Dial 888-902-9750 and enter participation code 9635734. About Templeton Reagan Puritan Mill LLC Templeton Reagan Puritan Mill LLC is involved in the real estate sector. The Debtor is the sole owner of the property at 810 Bay Point Drive, Madeira Beach, Florida, which is currently valued at approximately $1.38 million. Templeton Reagan Puritan Mill LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga.Case No. 25-51015) on January 31, 2025. In its petition, the Debtor reports total assets of $1,940,662 and total liabilities of $1,213,123. The Debtor is represented by: Louis McBryan, Esq. MCBRYAN, LLC 6849 Peachtree Dunwoody Road Building B-3, Suite 100 Atlanta GA 30328 Tel: 678-733-9322 E-mail: alepage@mcbryanlaw.com TERRAFORM LABS: Trustee Opposes White & Case Payment in Chapter 11 ------------------------------------------------------------------ Emlyn Cameron of Law360 reports that the U.S. Trustee's Office has requested that a Delaware bankruptcy court deny White & Case LLP's $431,000 fee request for services provided to the official committee of unsecured creditors in Terraform Labs' Chapter 11 case, citing that the firm was not formally retained by the committee and the work is ineligible for payment. About Terraform Labs Terraform Labs Pte. Ltd. -- https://www.terra.money -- is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins. It was co-founded by Do Kwon and Daniel Shin in 2018 in Seoul, South Korea. Terraform Labs introduced its first cryptocurrency token, TerraUSD, in 2019. Investment firms like Arrington Capital, Coinbase Ventures, Galaxy Digital, and Lightspeed Venture Partners helped Terraform Labs raise more than $200 million. The collapse of the stablecoins TerraUSD (UST) and Luna in May 2022 caused the temporary suspension of the Terra network, wiping out over $45 billion in market capitalization in a single week. Both of Terra Form Labs' founders have encountered legal problems as a result of the devaluation of the company's currency. In September 2022, South Korean prosecutors filed a warrant for Do Kwon's arrest. He was also added to Interpol's Red Notice list, which urges other law enforcement to find and detain him. Terraform Labs Pte. Ltd. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-10070) on Jan. 22, 2024. In the petition filed by Chris Amani, as chief executive officer, the Debtor estimated assets and liabilities between $100 million and $500 million each. The Debtor is represented by: Zachary I Shapiro, Esq. Richards, Layton & Finger, P.A. 1 Wallich Street #37-01 Guoco Tower 078881 TOHI LLC: Files Amendment to Disclosure Statement ------------------------------------------------- Tohi LLC submitted a First Amended Disclosure Statement in connection with its Chapter 11 Plan dated January 27, 2025. The Debtor is a single-asset real estate company that owns six adjacent parcels of real property located at 8092 and 990 Richlandtown Rd, Quakertown, PA (the "Properties"), which the Debtor purchased in 2017. The Properties are a mixture of residential units and undeveloped parcels. Though for a time the Debtor was able to pay its debts as they came due, the rental income from the Properties has recently been insufficient to support the payments on the loans secured by the Properties, and the Debtor has recently sought but been unable to obtain the financing needed to further develop and monetize the Properties. The Debtor will pursue a refinance of its debts, as it has done during the pendency of this chapter 11 case, that will provide full payment of all creditor claims. The aggregate value of the Properties is believed to be $5,500,000.00, and the secured claims in this case total approximately $2,935,916.33. Accordingly, the Properties are believed to have equity of more than $2.5 million that will enable and support a refinance transaction. The Debtor shall have six months from the Effective Date to obtain a refinance of all debts encumbering the Properties (the "Refinance Period"). If a refinance of the Properties does not occur within the Refinance Period, the Debtor will actively market the Properties for sale. The Debtor shall engage a realtor and have an additional six months to market and sell the Properties (the "Marketing Period"). The proceeds of any refinance or sale of the Properties will be distributed to creditors, after applicable costs and fees. The Debtor anticipates that all creditors will be paid in full through either refinance or sale. The Amended Disclosure Statement does not alter the proposed treatment for unsecured creditors and the equity holder: * Class 9 consists of Allowed General Unsecured Claims. As of the Plan filing, the Debtor is aware of only one General Unsecured Claim, held by the U.S. Small Business Administration, in an unknown amount. In accordance with the Waterfall, available proceeds from the Unsecured Fund shall be distributed by the Debtor within 30 days of the refinance or sale of the Properties to any Creditors holding an Unsecured Claim, in full satisfaction of their claims. * Class 10 consists of all Interests in the Debtor. As of the Plan filing, the sole Interest Holder is Geralyn Touhill. On the Effective Date, all Interests in the Debtor shall transfer and become Interests in the Reorganized Debtor for the purpose of fulfilling the obligations of the Reorganized Debtor under the Plan; however, the holder of Interests shall not receive any distributions on account of such Interests, unless and until all Creditors are paid in full in accordance with the Plan. The funds necessary for the implementation of the Plan shall be from the proceeds from the refinance or sale of the Properties in accordance with the Refinance/Sale Procedure. The Debtor will pursue a refinance of its debts that will provide full payment of all creditor claims. The refinance will be enabled and supported by the Properties, which is believed to have equity of more than $2.5 million above the secured claims against it. In the event that a refinance is not obtained within six months of the Effective Date (the "Refinance Period"), the Debtor shall actively market and pursue the sale of the Properties through a licensed realtor for an additional six months (the "Marketing Period"). A full-text copy of the First Amended Disclosure Statement dated January 27, 2025 is available at https://urlcurt.com/u?l=JzpQ2S from PacerMonitor.com at no charge. Counsel to the Debtor: David B. Smith, Esq. Smith Kane Holman, LLC 112 Moores Road, Suite 300 Malvern, PA 19355 Tel: (610) 407-7217 Fax: (610) 407-7218 Email: dsmith@skhlaw.com About Tohi LLC TOHI LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). TOHI LLC in Doylestown, PA, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. E.D. Pa. Case No. 24-13285) on Sept. 16, 2024, listing as much as $1 million to $10 million in both assets and liabilities. Shawn Touhill as president, signed the petition. Judge Ashely M Chan oversees the case. SMITH KANE HOLMAN, LLC serve as the Debtor's legal counsel. TRUENOORD LIMITED: S&P Assigns 'B+' ICR, Outlook Stable ------------------------------------------------------- S&P Global Ratings assigned its 'B+' long-term issuer credit rating to TrueNoord Limited and its 'B+' issue rating to TrueNoord Capital DAC's proposed senior unsecured notes. S&P also assigned a '4' recovery rating to the notes, indicating its expectation for average (30%-50%; rounded estimate: 40%) recovery in the event of a default. The stable outlook reflects our expectation that TrueNoord will continue to grow its fleet while maintaining weighted average EBIT interest coverage around 1.0x, debt to capital well below 80%, and funds from operations (FFO) to debt of 7%-9%. TrueNoord is an aircraft lessor with an owned fleet of 96 aircraft as of Sept. 30, 2024--primarily regional, crossover, and turboprop aircraft. On Feb. 4, 2025, TrueNoord announced its plan to raise $400 million senior unsecured notes through its wholly owned subsidiary TrueNoord Capital Designated Activity Co. (TrueNoord Capital DAC). S&P said, "Our rating on TrueNoord is based on its market position in the regional aircraft leasing market as well as its small size relative to peers. TrueNoord operates mainly in regional aircraft leasing, a potentially undervalued niche where the company could have a competitive advantage through its industry knowledge and ability to manage complex transactions. We believe the company's expertise in this less commoditized market may offer return advantages through prudent underwriting and effective portfolio management. "That said, TrueNoord is small relative to most aircraft operating lessors we rate, with an owned fleet of approximately 96 aircraft and no orderbook. Its portfolio is concentrated in lower-value assets relative to narrowbody or widebody aircraft. As of September 2024, the portfolio (adjusted for the portfolio acquisition in December 2024) had a total net book value of $1.4 billion, of which 49% was regional aircraft, 35% turboprop aircraft, 14% crossover aircraft, and 2% widebody aircraft. "We view TrueNoord's lessee relationships as relatively concentrated, which is, in part, a byproduct of its specialization in aircraft used for short-haul routes in underserved markets. TrueNoord had aircraft leases placed with 28 customers across 22 countries as of Sept. 30, 2024. But Porter Airlines accounts for about 14% of the company's aircraft net book value (NBV), which represents modest concentration risk, in our view. The company's top 10 lessees represented 54% of the aircraft portfolio NBV." TrueNoord's fleet is diversified by geography to some extent, with Europe, Americas, and Asia-Pacific accounting for 33%, 29%, and 22% of lease revenue, respectively, as of September 2024. The company acquires its fleet assets primarily through sale and lease back and opportunistic portfolio acquisitions without maintaining an orderbook, which is a differentiator compared with its peers. S&P takes a balanced view on this strategy. On one hand, there is less visibility of the company's fleet, capital expenditure, and growth trajectory. On the other hand, there are lower pricing and placement risks in the secondary market transactions. Additionally, new deliveries of regional aircraft and the potential divestments of non-core assets from other lessors could offer sufficient transaction opportunities for TrueNoord to pursue under current market conditions. While TrueNoord has an older fleet and shorter remaining lease term than the industry average, we expect the company to benefit from strong aircraft demand conditions in the short term. As of September 2024, the weighted average age of its fleet was 8.9 years, versus the industry average of three to eight years. However, given current aircraft undersupply across the industry, utilization of older aircraft remains high, and TrueNoord's current fleet is almost fully placed with lessees. TrueNoord's fleet has a weighted average remaining lease term of 4.9 years, which is on the lower end of the average range of five to eight years. The lower average lease term could expose the company to re-leasing risks and lower fleet utilization during periods of weaker demand or higher oil prices. However, over the next 12 months, S&P expects the company to re-lease at higher rates based on the strong aircraft demand conditions. TrueNoord has good operating efficiency, supported by strong fleet utilization, but its lease yield is lower than other rated regional lessors. As of Sept. 30, 2024, 99% of the company's aircraft portfolio was on lease. That said, the lease yield of about 9% in fiscal year 2024 was lower than other rated regional lessors. This is primarily due to the lease contracts entered through the pandemic, which have lower lease rate factors. S&P expects yields to rise modestly over the next 12 months, supported by higher re-leasing rates and the continued undersupply of aircraft (leading to strong yields on older aircraft). While the company's revenue will likely increase over the next 12 months due to fleet growth and higher lease yield, higher debt burden and cash interest expense will weigh on its key credit metrics. S&P said, "As a result, we expect its EBIT interest coverage will remain weaker than most rated peers. Pro forma for the proposed transaction, we expect TrueNoord to operate with EBIT interest coverage of about 1.0x, FFO to debt of about 7%-9%, and debt to capital of about 70%-75% on a weighted average basis." S&P said, "TrueNoord is majority owned by institutional investors, including Freshstream, BlackRock, and Abrdn-Patria, which we consider financial sponsors. In our base-case forecast, we do not anticipate sizable distribution to sponsors over the next 12-24 months. The sponsors have contributed over $400 million of equity into TrueNoord since fiscal year 2017. "We view management and governance as moderately negative, consistent with all financial sponsor-owned companies, given sponsors' potential aggressive agenda of maximizing shareholder returns during a generally finite holding period. That said, the management team has deep expertise in aviation leasing with an average of 22 years of industry experience. The company's board includes an independent chairman, three directors from TrueNoord, and three directors representing financial sponsors, including Freshstream and BlackRock. "We expect TrueNoord to maintain adequate liquidity to meet its operational and debt servicing needs. Our assessment of the company's liquidity reflects its stable cash generation, lack of orderbook commitments, and access to the undrawn capacity of warehouse facilities ($385 million as of September 2024). Pro forma for the transaction, we expect sources of liquidity to exceed uses of liquidity by over 1.2x, and even if EBITDA were to decline by 15%, sources of cash would exceed uses of cash over the next 12 months." The company's existing warehouse debt and term loan require sizable annual amortization payments (with an annual amortization rate of 6.5-11%), which could pressure the company's liquidity in a period of stress. That said, the proposed unsecured issuance will be used to partially repay the amortizing debt. Additionally, the amortization payment would unencumber the company's fleet assets and provide some financial flexibility. S&P said, "We apply a positive adjustment for comparable rating analysis, which results in one notch of rating uplift. The company has a strong debt-to-capital ratio relative to our highly leveraged financial risk assessment. Additionally, we view positively TrueNoord's resilience (with high cash collection rates) through the pandemic period, which is a testament to the company's prudent credit underwriting and effective portfolio management. "Our issue rating on TrueNoord Capital DAC's proposed senior unsecured notes is the same as our issuer credit rating on TrueNoord given the '4' recovery rating. TrueNoord Ltd. and certain subsidiaries will guarantee the proposed unsecured issuance. The company will use net proceeds of the transaction to fully repay its existing subordinated debt and partially repay the outstanding balances of its warehouse debt and senior secured portfolio facilities. "The average ('4') recovery rating reflects our expectation that the company will maintain a substantial amount of unencumbered assets. We could lower the recovery rating and issue-level rating if the unencumbered assets balance declines materially. "The stable outlook indicates our expectation that TrueNoord will continue to grow its fleet while maintaining weighted average EBIT interest coverage around 1.0x. We also expect the company to operate with debt to capital well below 80% and FFO to debt of 7%-9%." S&P could lower the rating if EBIT interest coverage falls materially below 1.0x on a sustained basis or if its debt-to-capital ratio increases to above 82%. It could also downgrade the company if: -- Profitability and cash flow are significantly below our expectations because of lower leasing demand, -- The company significantly increases its debt to finance strategic investments or dividend payments to its financial sponsors, or -- Liquidity materially deteriorates. An upgrade is unlikely over the next 12 months. Over the long term, S&P could raise the rating if TrueNoord meaningfully grows its fleet and diversifies its lessee base, while maintaining EBIT coverage well above 1.3x, FFO to debt above 9%, and debt to capital below 82%. UNIMODE WOODWORKING: Gets OK to Use Cash Collateral Until Feb. 28 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, extended Unimode Woodworking, Inc.'s authority to use cash collateral from Jan. 31 to Feb. 28. The order signed by Judge Timothy Barnes authorized the company to use the cash collateral of its secured creditor, the U.S. Small Business Administration, to pay its expenses for the interim period. As protection, the SBA was granted liens and security interests in the company's collateral, including post-petition collateral. A status hearing is scheduled for Feb. 26. About Unimode Woodworking Unimode Woodworking, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-15017) on October 9, 2024, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Matthew Brash of Newpoint Advisors Corporation serves as Subchapter V trustee. Judge Timothy A. Barnes presides over the case. The Debtor is represented by: David Freydin, Esq. Law Offices of David Freydin Ltd Tel: 630-516-9990 Email: david.freydin@freydinlaw.com UNIVERSAL BIOCARBON: Files Chapter 11 Bankruptcy in Florida ----------------------------------------------------------- On January 30, 2025, Universal Biocarbon Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Florida. According to court filing, the Debtor reports $1,650,534 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Universal Biocarbon Inc. Universal Biocarbon Inc. transforms vegetative biomass, such as yard waste and tree trimmings, into high-quality carbon products like compost, mulch, biochar, and activated carbon. The company promotes sustainability by converting waste materials into environmentally beneficial products, helping reduce landfill waste and emissions. Through a partnership with the Sunshine State Biomass Cooperative, UBC creates a cycle of beneficial reuse, sharing profits with the suppliers of biomass feedstock. Universal Biocarbon Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10987) on January 30, 2025. In its petition, the Debtor reports total assets of $899,953 and total liabilities of $1,650,534. Honorable Bankruptcy Judge Erik P. Kimball handles the case. The Debtor is represented by: Craig I. Kelley, Esq. KELLEY KAPLAN & ELLER, PLLC 1665 Palm Beach Lakes Blvd The Forum - Suite 1000 West Palm Beach, FL 33401 Tel: 561-491-1200 Email: craig@kelleylawoffice.com UNLIMITED ENTERPRISES: Case Summary & Five Unsecured Creditors -------------------------------------------------------------- Debtor: Unlimited Enterprises Realty, LLC 7730 Fanlight Place Union City, GA 30291 Business Description: The Debtor is involved in the residential building construction industry. Chapter 11 Petition Date: February 4, 2025 Court: United States Bankruptcy Court Northern District of Georgia Case No.: 25-51194 Judge: Hon. Paul Baisier Debtor's Counsel: Theodore N. Stapleton, Esq. THEODORE N. STAPLETON 2802 Paces Ferry Rd SE Suite 100-B Atlanta, GA 30339 Tel: (770) 436-3334 Fax: (404) 935-5344 E-mail: tstaple@tstaple.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Daron Clark as manager. A full-text copy of the petition, which includes a list of the Debtor's five unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/WSUPZRI/Unlimited_Enterprises_Realty_LLC__ganbke-25-51194__0001.0.pdf?mcid=tGE4TAMA VIPER ENERGY: Moody's Puts 'Ba2' CFR on Review for Upgrade ---------------------------------------------------------- Moody's Ratings placed Viper Energy, Inc.'s (Viper) ratings on review for upgrade, including its Ba2 Corporate Family Rating, Ba2-PD Probability of Default Rating and Ba3 backed senior unsecured notes rating. Previously, the rating outlook was stable. These actions follow Viper's announcement on January 30, 2025[1] to make two separate acquisitions with a combined value of approximately $4.6 billion that will be funded largely with equity. The larger transaction (the "dropdown") involves Viper's agreement to acquire royalty and mineral interests from certain subsidiaries of Diamondback Energy, Inc. (Diamondback, Baa2 stable) for $1 billion in cash plus 69.63 million of Viper's equity worth roughly $3.2 billion. Viper has concurrently completed an underwritten public equity offering for 24.64 million shares (28.34 million including underwriter's option) to fund the cash portion of the purchase price. The second acquisition is from Morita Ranches Minerals, LLC (unrated), which is smaller and will be funded with $211 million of cash and 2.4 million of equity issuance. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings were placed on review for upgrade based on the credit enhancing nature of the combined acquisitions. The acquisitions will significantly increase the scale and the level of diversification of Viper's production, reserves and cash flow while simultaneously reducing financial leverage. Pro forma average daily production will jump by more than 60% immediately to over 80 mboe/day, while the debt/EBITDA ratio declines below 1x due to equity funding of the purchase price. Viper will not need to issue any debt to cover the cash portion of the purchase price, and therefore will face minimal financing risks. Additionally, the Diamondback dropdown will expand Viper's exposure to Diamondback operated acreage providing an increased level of certainty around continued future drilling and production. Diamondback's pro forma ownership of Viper will increase to about 52% from 45% following the dropdown transaction. The Morita Ranches acquisition is set to close in February 2025, subject to customary closing conditions and adjustments. In addition to regulatory clearance, the Diamondback dropdown transaction will also require a majority of Viper's stockholder approval not affiliated with Diamondback, and is expected to close in the second quarter of 2025. Both transactions have a transaction effective date of January 1, 2025. Moody's review will focus on updating Moody's forward view on the company's financial profile, continued acquisitions and related funding, and financial policies. The review will conclude following the close of both transactions. Based on the information currently available, Moody's expect Viper's CFR and senior unsecured notes will most likely be upgraded by one notch to Ba1 and Ba2, respectively. Viper Energy, Inc. is a publicly traded company based in Midland, Texas, which is engaged in owning and acquiring mineral and royalty interests in oil and natural gas properties. The principal methodology used in these ratings was Independent Exploration and Production published in December 2022. VISION PAINTING: Gets OK to Use Cash Collateral Until March 7 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois granted Vision Painting & Decorating Services, Inc authorization to use cash collateral on an interim basis. The interim order signed by Judge Janet Baer authorized the company to use cash collateral until March 7 to pay the expenses set forth in its budget. The budget shows total projected expenses of $91,465 for February. The interim order granted the Internal Revenue Service and the Illinois Department of Employment Security post-petition replacement liens on the cash collateral and all post-petition property of the company, to the same extent and with the same priority as their pre-bankruptcy liens. As additional protection, the IRS and the Illinois Department of Employment Security will receive monthly payments of $900 and $450, respectively. The next hearing will be held on March 5. About Vision Painting & Decorating Services Vision Painting & Decorating Services Inc. is a specialty contractor that serves the Calumet Park, Illionois area and specializes in specialty ceilings, plaster and gypsum board, acoustic treatment, flooring, painting and coatings, wall finishes and tile. Vision Painting & Decorating Services sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-17620) on November 22, 2024, with estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. Edward T. McKinnie, Jr., president of Vision Painting & Decorating Services, signed the petition. Judge Janet S. Baer handles the case. The Debtor is represented by: Gregory K Stern Gregory K. Stern, P.C. Tel: 312-427-1558 Email: greg@gregstern.com W.R. GRACE: Moody's Lowers CFR to 'B3', Outlook Stable ------------------------------------------------------ Moody's Ratings has downgraded W.R. Grace Holdings LLC's (Grace) Corporate Family Rating to B3 from B2, Probability of Default rating to B3-PD from B2-PD, the ratings on the senior secured bank credit facilities and senior secured notes to B2 from B1, and the ratings on the senior unsecured notes to Caa2 from B3. The outlook is stable. RATINGS RATIONALE The downgrade reflects Grace's weak financial profile as indicated by its elevated leverage metrics and negative free cash flows since 2023. While Moody's expect Grace's business operations will remain stable benefiting from its leading market positions in the specialized catalyst and material industries, its capital structure will remain weak with low likelihood of materially reducing leverage metrics and it will be unable to generate enough cash flow over the next two years to materially reduce debt. Grace's earning recovery in 2024 was weaker than Moody's original expectation due to the slow demand growth of its key end markets including refining, polyolefin, consumer goods and basic materials. With flat revenue of $2.3 billion in the LTM September 2024, Grace managed to improve its profitability mainly with the execution of its Enterprise Improvement Program. Despite an 8% YOY increase of its Moody's adjusted EBITDA to $501 million in the LTM September 2024, Grace's leverage, as measured by Moody's-adjusted debt/EBITDA, remained very high at 8.2x. It generated negative free cash flow of $80 million in the same period as its EBITDA fell short in covering its high interest expenses, ongoing CapEx, and the costs associated with legacy payments and restructuring expenses. Moody's expect Grace will generate similar level of operational performance in 2025, with modest EBITDA growth driven by the implementation of its remaining EIP program while demand recovery will remain slow. With these assumptions, Moody's estimate that Grace's leverage will hover close to 8.0x and its free cash flow likely still modestly negative in 2025. Nevertheless, Grace's credit profile is supported by strong market positions in several key end markets, including the leader in the global polyolefin catalyst industry, fluid catalytic cracking (FCC) catalysts, and specialty silica gels. Grace's business profile further benefits from high barriers to entry, a good operating track record which helps to support EBITDA margins. The company's adequate liquidity is also a supporting factor for the credit profile as it manages through this challenging downcycle. The stable outlook reflects Moody's expectation that Grace's business performance and credit metrics will likely remain close to current level in the next 12 to 18 months, and that liquidity will continue to remain above $200 million. LIQUIDITY The company maintains adequate liquidity. The company has a cash balance of $108 million at the end of Q3 2024. The company had $269 million available under their $450 million revolving credit facility due September 2026 as well as $36 million available under non-US credit facilities as of September 30, 2024. Moody's expect Grace will need to draw additional funds from the revolver to cover its modest negative free cash flows in 2025. STRUCTURAL CONSIDERATIONS Grace's debt capital structure is comprised of a first lien term loan, first lien senior secured revolving credit facility, senior secured notes and senior unsecured notes. The B2 ratings on the first lien term loan, revolving credit facility and senior secured notes, are one notch above the B3 CFR and reflect a first lien position on substantially all assets and priority ranking in the event of default. The Caa2 rating of the senior unsecured notes, two notches below the CFR, indicates their deep subordination as a result of the significant amount of first lien debt in the capital structure. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade is unlikely at this time, but Moody's could upgrade the rating with expectations for adjusted financial leverage sustained below 5.5x (Debt/EBITDA), retained cash flow-to-debt sustained above 10% (RCF/Debt) and more balanced financial policies that include gross debt reduction and a commitment from its owners to a more conservative financial policy. An upgrade would also assume a reduction in event risk such that the size of future acquisitions would not raise pro forma leverage meaningfully above 5.5x for a sustained period. Moody's could downgrade the rating with expectations of adjusted financial leverage to remain above 6.5x through the cycle, a significant deterioration in the company's liquidity position, or a large debt-financed acquisition or dividend to shareholders. ESG CONSIDERATIONS Environmental, social, and governance factors are important factors influencing Grace's credit quality, but not a driver of the actions. Grace's (CIS-4) score indicates that the rating is lower than it would have been if ESG risk exposures did not exist. The score mainly reflects the risks associated with Grace's highly leveraged balance sheet and the exposure to environmental risks including physical climate risks related to its operations in the Gulf Coast as well as waste and pollution risks arising from its chemical production process. Headquartered in Columbia, MD, W.R. Grace Holdings LLC, a Standard Industries company, is a leading global manufacturer of specialty chemicals and materials operating and/or selling in over 60 countries. The company has two reporting segments: Catalysts Technologies and Materials Technologies. Catalysts Technologies is a globally diversified business that includes refining, polyolefin and chemicals catalysts. Materials Technologies includes specialty materials such as silica-based and silica-alumina-based materials used in consumer/pharmaceutical, chemical processes and coatings applications. On April 26, 2021, W.R. Grace agreed to be acquired by Standard Industries Inc. (formerly Standard Industries Holdings Inc.) for $7.0 billion. Grace generated approximately $2.3 billion of sales for the last twelve months ended September 30, 2024. The principal methodology used in these ratings was Chemicals published in October 2023. WH INTERMEDIATE: S&P Rates Subs New First-Lien Term Loan 'B' ------------------------------------------------------------ S&P Global Ratings assigned its 'B' issue-level rating and '3' recovery rating to the new $1.23 billion first-lien term loan due 2032 and $175 million first-lien revolving credit facility due 2030 issued by WH Intermediate LLC's (WHP) subsidiary WH Borrower LLC. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a default. We will withdraw our ratings on the company's existing debt once the transaction closes. WHP intends to use the proceeds from this transaction to refinance existing debt, pay down the outstanding revolver borrowings it used to support its recent acquisition of the Vera Wang brand, and pay related fees and expenses. While the proposed transaction will improve the company's maturity profile, we anticipate it will take on about $70 million of additional debt. Pro forma for the transaction and recent acquisition, we expect WHP's S&P Global Ratings-adjusted leverage for the 12 months ended Sept. 30, 2024, will increase to our downgrade threshold of the mid-6x area. However, we believe the company's good cash flow generation and stable EBITDA margins (near 70%) offset the risk from its higher leverage at this rating level. These factors will likely also enable the company to deleverage to near 6x throughout 2025 as it continues to gain scale and realize incremental EBITDA from its recent brand acquisitions. We incorporate WHP's $125 million of preferred equity as debt in our adjusted calculation, given the instrument's optional redemption feature. The company used this equity to fund its acquisition of the remaining interest in the Express brand and its investment in the related PHOENIX joint venture in June 2024. Without including WHP's preferred equity as debt, its S&P Global Ratings-adjusted leverage would be 6x. WILDCAT LENDER: Case Summary & One Unsecured Creditor ----------------------------------------------------- Debtor: Wildcat Lender, LLC 1110 Glenneyre Street Laguna Beach, CA 92651 Chapter 11 Petition Date: February 4, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-10304 Judge: Hon. Scott C Clarkson Debtor's Counsel: David A. Wood, Esq. MARSHACK HAYS WOOD LLP 870 Roosevelt Irvine, CA 92620-3663 Tel: (949) 333-7777 E-mail: dwood@marshackhays.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $0 to $50,000 The petition was signed by Christopher Dornin as president. The Debtor has identified Warner Angle, Attn: James Valletta, located at 2555 E. Camelback Rd., Ste. 800, Phoenix, AZ 85016, as its sole unsecured creditor, with a claim of $7,000 for attorney fees. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/4KFM7AQ/Wildcat_Lender_LLC__cacbke-25-10304__0001.0.pdf?mcid=tGE4TAMA WINDSOR HOLDINGS III: Fitch Affirms B+ LongTerm IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Windsor Holdings III, LLC's (d/b/a Univar Solutions [Univar]) Long-Term Issuer Default Rating (IDR) at 'B+'. Fitch has also affirmed the long-term ratings for the company's senior secured term loans and notes at 'BB-' with a Recovery Rating of 'RR3', and the ABL revolver at 'BB+'/'RR1'. The Rating Outlook remains Stable. The 'B+' IDR reflects Univar's heightened leverage profile with EBITDA leverage of around 6.0x, and the company's leading market positions in chemicals and ingredients distribution. The rating also incorporates the issuer's resilient EBITDA margins and considerable FCF generation. The Stable Outlook reflects Fitch's expectations for EBITDA leverage to remain between 5.5x-6.5x through the forecast horizon. Key Rating Drivers Stable Performance: Univar's recent operating performance was stable in light of the soft demand conditions seen in 2024, with sales and Fitch-calculated EBITDA trending roughly flat to 2023 levels. The issuer's delivered gross profit (defined as gross profit (exclusive of depreciation) less outbound freight and handling expenses) improved, demonstrating the benefits of Univar's cost management, pricing discipline, and product mix. Market share gains in light of a continued trend of supplier outsourcing has also supported earnings. Fitch expects Univar's FCF to improve to consistently positive levels going forward, after slightly negative FCF in 2024 due to a $500 million extraordinary dividend in January 2024. The company's FCF profile continues to be supported by resilient EBITDA margins and low capex requirements through Fitch's forecast despite modest earnings growth in the near-term. High but Sustainable Leverage: Fitch forecasts Univar's EBITDA Leverage to trend around 6.0x through the forecast, reflecting the leveraging $500 million dividend recapitalization in February 2024 and moderate EBITDA growth. Univar also completed two sale leaseback transactions in 2024, with approximately $400 million of aggregate net proceeds having been applied to reduce indebtedness. Fitch believes the recent dividend recapitalization represented an opportunistic capital allocation strategy and an appetite for leveraging transactions. An increase in debt-funded acquisitions or special dividends may further pressure credit metrics if not balanced with equity contributions or meaningful subsequent debt reduction. Disciplined Acquisition Activity: Fitch expects Univar to continue focusing on organic and inorganic investments to accelerate growth of the business, and that bolt-on acquisition spending remains disciplined relative to cash flow generation. The issuer completed one $80 million acquisition in 2024 for Texas-based distributor Valley Solvent Company, Inc., which was funded via a combination of ABL borrowings and cash. Fitch expects that any materially leveraging transaction would be supported by a credible plan to bring EBITDA leverage back to the 5.5x-6.5x range within 24 months and for increased penetration into stable end-markets to be favorable toward Univar's business profile. Resilient Margins: Univar has successfully improved Fitch-calculated EBITDA margins in recent years by implementing various operational cost-reduction initiatives, pruning or divesting some of lower margin or non-core products, investing in logistics, and building out its solutions centers. The company aims to focus on growing its Ingredients & Specialty business (reported by Univar to be approximately 40% of gross profit) through further market share gains and new partnerships, which should support stronger margins going forward. Fitch forecasts Univar maintaining Fitch-calculated EBITDA margins close to the low-8% range through the forecast horizon. Leading Position in Fragmented Market: Univar is better positioned to navigate logistical challenges and counterparty risk than smaller competitors due to its size, operational scale and diversification. The global chemical distribution market is highly fragmented, with an estimated market size of roughly $200 billion and the top two distributors accounting for about 10% of the market. The company maintains the largest chemicals and ingredients sales force in North America, the broadest product offering and an increasingly efficient supply chain network, allowing Univar to continue to grow by leveraging its footprint to cover more products, customers and regions. Derivation Summary Univar is the second-largest global chemical distributor behind Brenntag AG and is the largest North American chemical distributor in a fragmented industry. Fitch compares Univar with IT distributor Arrow Electronics, Inc. (BBB-/Stable) and metals distributor Reliance Inc. (BBB+/Stable). Each of these distributors benefits from significant size, scale and diversification compared with peers within their markets. Fitch believes the fragmented nature of, and potential for, continued outsourcing within chemicals distribution provides Univar a unique opportunity to increase market share and capture potential market expansion. Supported by an unmatched value-added service offering, Univar generates stronger EBITDA margins than Arrow Electronics. Fitch views cash flow risk within the distribution industry as relatively low compared with chemicals producers due to the limited commodity price risk, diversification of customers and end markets, low annual capex requirements of 1%-2% of revenue and countercyclical working capital dynamics. Technology and metals distribution market risks differ, still the overall operating performances and cash flow resiliency are similar, with FCF margins for these distribution peers averaging in the low to mid-single digits over the past five years. Univar's financial structure is weaker than the peer set with expectations for EBITDA leverage to trend between 5.5x-6.5x. Key Assumptions - Organic sales growth remains muted in 2025, as continued soft demand leads to only modest improvements in volumes and pricing, followed by growth exceeding GDP, thereafter; - Fitch-calculated EBITDA margins hover close to low-8% range as benefits from cost savings and improved mix are offset by weak pricing; - Capex spending of around $120 million annually; - Excess FCF is applied to bolt-on acquisitions. Recovery Analysis Key Recovery Rating Assumptions The recovery analysis assumes Univar would be reorganized as a going concern in bankruptcy rather than liquidated. Fitch assumed a 10% administrative claim and that the $1.4 billion ABL is 80% drawn. This is due to the likelihood the ABL borrowing base will gradually reduce in a distressed scenario as the pricing environment declines over time. Going-Concern Approach Fitch projects Univar's going concern EBITDA is $650 million, which assumes a rebound from an assumed trough EBITDA of around $640 million. This reflects an improvement in the underlying economic conditions that would have likely precipitated the default, and corrective actions taken during restructuring, or actions that would be priced in by potential bidders. This compares to around $640 million in Fitch-calculated EBITDA generated by Univar in the 2020 trough period. The going-concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which it bases the enterprise valuation. Specifically, the going concern EBITDA depicts a sustained economic contraction in North America, resulting in severe, prolonged volume headwinds that more than offset working capital releases. Fitch assumes that upon default, Univar would be unable to improve EBITDA as economic and industry headwinds would likely limit the benefits of cost reductions. However, Fitch assumes the underlying business fundamentals would improve over time as the cycle corrects, leading to the assumed going concern EBITDA. Fitch applies a 6.0x enterprise value multiple to the going concern EBITDA to calculate a post-reorganization enterprise value. The choice of this multiple considers the company's high-quality asset profile including an extensive worldwide chemical and ingredient distribution network, various product transportation assets, technical development assets, and a leading proprietary e-commerce platform. Fitch considers these competitive advantages unique, relative to most chemical companies, which typically employ a more asset-light approach with a more limited set of value-added assets. These assumptions result in a recovery rating for the ABL within the 'RR1' range to generate a three-notch uplift to the issue rating from the IDR. The assumptions also lead to a recovery rating for the senior secured term loans and notes of 'RR3', generating a one-notch uplift from the IDR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA Leverage sustained above 6.5x; - A sustained reduction in EBITDA margins or ineffective working capital management leading to weaker FCF generation and financial flexibility; - A large transformational debt-funded acquisition or dividend recapitalization where there is no clear path to deleveraging within 24 months. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Gross debt reduction leading to EBITDA Leverage sustained below 5.5x; - Balanced allocation of FCF that maintains balance sheet flexibility along with a commitment to lower leverage. Liquidity and Debt Structure Univar has an adequate cash position of approximately $106 million as of September 30, 2024. The issuer's $1.4 billion ABL revolver is nearly fully available as of YE 2024, after the company completed two sale leaseback transactions totaling approximately $400 million in net cash proceeds and applied those proceeds to reducing outstanding ABL borrowings. This comes after the issuer's ABL borrowings had previously peaked to approximately $564 million in 2Q24. The issuer's stable FCF generation further supports liquidity through the forecast. Issuer Profile Windsor Holdings III, LLC (d/b/a Univar Solutions) is an issuing holding company that wholly owns Univar Solutions, LLC and subsidiaries. Univar Solutions is a leading global chemical and ingredients distribution company and provider of value-added services, working with leading suppliers worldwide. 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 ----------- ------ -------- ----- Windsor Holdings III, LLC LT IDR B+ Affirmed B+ senior secured LT BB+ Affirmed RR1 BB+ senior secured LT BB- Affirmed RR3 BB- ZARIFIAN ENTERPRISES: Seeks to Sell Carpentry Equipment at Auction ------------------------------------------------------------------ Zarifian Enterprises, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to sell carpentry and millwork equipment. Robert P. Handler was appointed as the Sub Chapter V Trustee of the case. The Debtor operates a carpentry and millwork business and owns various wood working machinery and equipment used in the operations of the business including but not limited to the following: Holz Her CNC Machine, Holz Her Edge Bander, Gannomat machines, including drill and dowel machines, Pedestal Packaging Wrapper, Rol Air Air Compressor, and Dewalt tools, known as Equipment. The Debtor believes that the Equipment may be subject to liens, claims and encumbrances to Samson MCA LLC and Alliance One, LLC. The Debtor says that it needs to sell the Equipment at a public auction as soon as possible in order to maximize sale proceeds and stop the accrual of future administrative claims relating to the use and occupancy of Debtor's former leased premises where the Equipment is located. The Debtor states that the auction proceeds will be used to fund its Chapter 11 Plan of Liquidation to pay its creditors. The Debtor consults with numerous individuals and entities seeking assistance in liquidating and selling its Equipment including but not limited to Stephen Stabiner of Heath Industrial Auction Services, Inc. and Joel Bersh at Aaron Industrial Solutions. Heath Industrial inspects the Equipment and advises the Debtor that it would conduct an auction of the Equipment that would complete within 4 weeks and yield auction proceeds estimated to be in the range of $250,000 and possibly more. Heath Industrial has presented the Debtor with an On-line Auction Proposal to sell the Equipment at an on-line auction that provides, inter alia, Heath Industrial will prepare the auction sale setup, photograph the equipment for the on-line bidding catalog, contact potential buyers, oversee the pre-sale inspection of the Equipment and facilitate and oversee the removal of the sold Equipment. The Debtor chooses Heath Industrial to sell the Equipment the reason that they have experience conducting public auctions, including bankruptcy auctions, and have specific knowledge and experience with regards to the Equipment. The Debtor says that it is no longer operating and the sale of the Equipment will generate funds to the estate in substantially in excess of those that can be obtained if the Equipment is abandoned or disposed of for scrap value. About Zarifian Enterprises, LLC Zarifian Enterprises, LLC, filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 25-00188) on May 2, 2024. Judge David D. Cleary presides over the case. The Debtor was represented by Gregory K. Stern, P.C. as its legal counsel. ZMETRA LAND: Case Summary & 15 Unsecured Creditors -------------------------------------------------- Debtor: Zmetra Land Holdings, LLC 2 Old Worcester Road Webster MA 01570 Business Description: Zmetra Land specializes in property management, overseeing the operations, maintenance, and leasing of real estate assets. It owns the property located at 2 Old Worcester Road, Webster, MA, valued at $2.5 million. Chapter 11 Petition Date: February 4, 2025 Court: United States Bankruptcy Court District of Massachusetts Case No.: 25-40127 Judge: Hon. Elizabeth D Katz Debtor's Counsel: James L. O'Connor, Esq. NICKLESS, PHILLIPS AND O'CONNOR PO Box 2101 780 Main Street, Suite 401 Fitchburg MA 01420 Tel: 978-342-4590 E-mail: joconnor@npolegal.com Total Assets: $2,962,284 Total Debts: $3,085,001 The petition was signed by Joseph R. Zmetra as member. A full-text copy of the petition, which includes a list of the Debtor's 15 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/WSDEIWI/Zmetra_Land_Holdings_LLC__mabke-25-40127__0001.0.pdf?mcid=tGE4TAMA [] January 2025 Chapter 11 Commercial Filings Rise 16% YOY ---------------------------------------------------------- Monitor Daily reports that in January 2025, commercial Chapter 11 filings increased 16% year-over-year to 539, up from 465 in January 2024, according to data from Epiq AACER. Overall commercial bankruptcy filings rose 11% to 2,358 from 2,126, while small business filings under Subchapter V of Chapter 11 grew 7% to 171 from 160. Total bankruptcy filings saw a 13% increase, reaching 41,492 in January 2025, compared to 36,629 a year earlier. Individual filings also climbed 13% to 39,134 from 34,503. Chapter 7 filings jumped 17% to 22,938 from 19,580, while Chapter 13 filings rose 8% to 16,087 from 14,873. Michael Hunter, vice president of Epiq AACER, highlighted the continued double-digit growth in bankruptcy filings, citing rising consumer stress due to record-high credit card delinquencies and an increase in minimum payments. He expects this upward trend to gain momentum after tax season. Amy Quackenboss, executive director of the American Bankruptcy Institute, noted a slowdown in the growth of Subchapter V and Chapter 13 filings following the expiration of enhanced debt limits. She stressed the importance of working with Congress to expand access to bankruptcy relief for individuals and small businesses. Month-over-month, total bankruptcy filings increased 9% from December’s 38,130, with consumer filings also rising 9% from 35,791. Chapter 7 filings grew 5%, while Chapter 13 filings saw a 17% jump. Overall commercial bankruptcies edged up 1%, though commercial Chapter 11 filings dropped 3% from December's 553, and Subchapter V elections declined 9% from 187. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Deep South Silk, LLC Bankr. S.D. Ala. Case No. 25-10248 Chapter 11 Petition filed January 29, 2025 See https://www.pacermonitor.com/view/OCOIGXI/Deep_South_Silk_LLC__alsbke-25-10248__0001.0.pdf?mcid=tGE4TAMA represented by: Jason R. Watkins, Esq. SILVER VOIT GARRETT & WATKINS E-mail: jwatkins@silvervoit.com In re Clayton Russel Smith and Christine Laurine Smith Bankr. D. Colo. Case No. 25-10478 Chapter 11 Petition filed January 29, 2025 represented by: Jeffrey Weinman, Esq. ALLEN VELLONE WOLF HELFRICH & FACTOR P.C. In re J. Howell Tiller, MD, LLC Bankr. N.D. Fla. Case No. 25-30068 Chapter 11 Petition filed January 29, 2025 See https://www.pacermonitor.com/view/PSIGZOQ/J_Howell_Tiller_MD_LLC__flnbke-25-30068__0001.0.pdf?mcid=tGE4TAMA represented by: Byron W. Wright III, Esq. BRUNER WRIGHT, P.A. E-mail: twright@brunerwright.com In re Aharon Kalman Kibel Bankr. S.D. Fla. Case No. 25-10965 Chapter 11 Petition filed January 29, 2025 represented by: Michael Hoffman, Esq. In re Nathan Shane Adams and Krista Jones Adams Bankr. W.D. Mo. Case No. 25-60056 Chapter 11 Petition filed January 29, 2025 represented by: Spencer Desai, Esq. In re MMSM NYC LLC Bankr. E.D.N.Y. Case No. 25-40457 Chapter 11 Petition filed January 29, 2025 See https://www.pacermonitor.com/view/3MGFDZQ/MMSM_NYC_LLC__nyebke-25-40457__0001.0.pdf?mcid=tGE4TAMA represented by: Jonathan S. Pasternak, Esq. DAVIDOFF HUTCHER & CITRON LLP E-mail: jsp@dhclegal.com In re Webster Girls Caribsoul LLC Bankr. E.D.N.Y. Case No. 25-40458 Chapter 11 Petition filed January 29, 2025 See https://www.pacermonitor.com/view/3S2MHLI/Webster_Girls_Caribsoul_LLC__nyebke-25-40458__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re 16 EF Apartment LLC Bankr. S.D.N.Y. Case No. 25-10159 Chapter 11 Petition filed January 29, 2025 See https://www.pacermonitor.com/view/FSCOYFQ/16_EF_Apartment_LLC__nysbke-25-10159__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Tecias Childcare LLC Bankr. W.D.N.Y. Case No. 25-20077 Chapter 11 Petition filed January 29, 2025 See https://www.pacermonitor.com/view/SE2BDHY/Tecias_Childcare_LLC__nywbke-25-20077__0001.0.pdf?mcid=tGE4TAMA represented by: David H. Ealy, Esq. CRISTO LAW GROUP LLC E-mail: dealy@trevettcristo.com In re Parkinson Land LLC Bankr. D. Ariz. Case No. 25-00794 Chapter 11 Petition filed January 30, 2025 See https://www.pacermonitor.com/view/JXYKLXA/PARKINSON_LAND_LLC__azbke-25-00794__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Laird Angus Mooney Bankr. D. Colo. Case No. 25-10511 Chapter 11 Petition filed January 30, 2025 represented by: Owen Hathaway, Esq. THE LAW OFFICES OF OWEN HATHAWAY In re Larry Carson Hale, Jr. Bankr. N.D. Ga. Case No. 25-40120 Chapter 11 Petition filed January 30, 2025 represented by: William A. Rountree, Esq. ROUNTREE LEITMAN KLEIN & GEER, LLC In re El Milagro de Dios Corp Bankr. E.D.N.Y. Case No. 25-70400 Chapter 11 Petition filed January 30, 2025 See https://www.pacermonitor.com/view/I5KRZTY/El_Milagro_de_Dios_Corp__nyebke-25-70400__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Auburn Petroleum, LLC Bankr. N.D.N.Y. Case No. 25-30065 Chapter 11 Petition filed January 30, 2025 See https://www.pacermonitor.com/view/LRO5YKA/Auburn_Petroleum_LLC__nynbke-25-30065__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Sharky's LLC d/b/a Sharky's Tavern Bankr. S.D. Tex. Case No. 25-80044 Chapter 11 Petition filed January 30, 2025 See https://www.pacermonitor.com/view/MK46RTA/Sharkys_LLC_dba_Sharkys_Tavern__txsbke-25-80044__0001.0.pdf?mcid=tGE4TAMA represented by: Brandon Tittle, Esq. TITTLE LAW GROUP, PLLC E-mail: btittle@tittlelawgroup.com In re Sharky's LLC d/b/a Sharky's Tavern Bankr. S.D. Tex. Case No. 25-30469 Chapter 11 Petition filed January 30, 2025 See https://www.pacermonitor.com/view/IRSGYLI/Sharkys_LLC_dba_Sharkys_Tavern__txsbke-25-30469__0001.0.pdf?mcid=tGE4TAMA represented by: Brandon Tittle, Esq. TITTLE LAW GROUP, PLLC E-mail: btittle@tittlelawgroup.com In re Robert Kruse Bankr. W.D. Wash. Case No. 25-10251 Chapter 11 Petition filed January 30, 2025 represented by: Benjamin Ellison, Esq. In re LR Greenview LLC Bankr. N.D. Cal. Case No. 25-40170 Chapter 11 Petition filed January 31, 2025 See https://www.pacermonitor.com/view/LIHARPQ/LR_Greenview_LLC__canbke-25-40170__0001.0.pdf?mcid=tGE4TAMA represented by: Erin Daly, Esq. REGAL TAX & LAW GROUP, P.C. E-mail: erin@regaltaxlaw.com In re Lisa Ann Nkonoki Bankr. D. Conn. Case No. 25-20110 Chapter 11 Petition filed January 31, 2025 In re Ohana America Corporation Bankr. M.D. Fla. Case No. 25-00646 Chapter 11 Petition filed January 31, 2025 See https://www.pacermonitor.com/view/ZVBQGHY/Ohana_America_Corporation__flmbke-25-00646__0001.0.pdf?mcid=tGE4TAMA represented by: Buddy D. Ford, Esq. BUDDY D. FORD, P.A. E-mail: All@tampaesq.com In re Josrod1 Inc. Bankr. S.D. Fla. Case No. 25-11105 Chapter 11 Petition filed January 31, 2025 See https://www.pacermonitor.com/view/EOLNLMA/Josrod1_Inc__flsbke-25-11105__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Joan Elizabeth Gee Bankr. N.D. Ga. Case No. 25-20121 Chapter 11 Petition filed January 31, 2025 represented by: William Rountree, Esq. In re MZS Properties LLC Bankr. N.D. Ill. Case No. 25-01523 Chapter 11 Petition filed January 31, 2025 See https://www.pacermonitor.com/view/YB7Z6UA/MZS_Properties_LLC__ilnbke-25-01523__0001.0.pdf?mcid=tGE4TAMA represented by: Bradley Foreman, Esq. THE LAW OFFICES OF BRADLEY H. FOREMAN, P.C. E-mail: brad@foremanlawoffice.com In re Scott Eugene Grant Bankr. W.D. Mo. Case No. 25-40136 Chapter 11 Petition filed January 31, 2025 represented by: Colin Gotham, Esq. EVANS & MULLINIX, P.A. Email: cgotham@emlawkc.com In re Shaheen H. Shaheen Bankr. D. N.J. Case No. 25-10990 Chapter 11 Petition filed January 31, 2025 represented by: Andrew Kelly, Esq. THE KELLY FIRM, P.C. E-mail: akelly@kbtlaw.com In re Robert P Ruggiero, Sr. Bankr. E.D.N.Y. Case No. 25-70416 Chapter 11 Petition filed January 31, 2025 represented by: Richard Feinsilver, Esq. In re Heart of Gold Home Care, LLC Bankr. M.D. Pa. Case No. 25-00268 Chapter 11 Petition filed January 31, 2025 See https://www.pacermonitor.com/view/O4VW5IA/Heart_of_Gold_Home_Care_LLC__pambke-25-00268__0001.0.pdf?mcid=tGE4TAMA represented by: Robert E. Chernicoff, Esq. CUNNINGHAM, CHERNICOFF & WARSHAWSKY PC E-mail: rec@cclawpc.com In re John Charles Rightmyer and Erin Sue Rightmyer Bankr. M.D. Tenn. Case No. 25-00436 Chapter 11 Petition filed January 31, 2025 represented by: Jay Lefkovitz, Esq. In re Ryan Lee Stewart and Jessica Renee Stewart Bankr. E.D. Tenn. Case No. 25-30190 Chapter 11 Petition filed January 31, 2025 represented by: Keith Edmiston, Esq. In re Innov8tive Nutrition, Inc. Bankr. E.D. Tex. Case No. 25-40277 Chapter 11 Petition filed January 31, 2025 See https://www.pacermonitor.com/view/MALMKHA/Innov8tive_Nutrition_Inc__txebke-25-40277__0001.0.pdf?mcid=tGE4TAMA represented by: Robert T DeMarco, Esq. DEMARCO MITCHELL, PLLC E-mail: robert@demarcomitchell.com In re Desi Davis Bankr. N.D. Tex. Case No. 25-30365 Chapter 11 Petition filed January 31, 2025 represented by: Kevin Wiley, Esq. In re Heights Place LLC Bankr. S.D. Tex. Case No. 25-30533 Chapter 11 Petition filed January 31, 2025 Filed Pro Se In re ReEnvision Aesthetics and Medspa, PC Bankr. C.D. Cal. Case No. 25-10127 Chapter 11 Petition filed February 1, 2025 See https://www.pacermonitor.com/view/U6RN3CQ/ReEnvision_Aesthetics_and_Medspa__cacbke-25-10127__0001.0.pdf?mcid=tGE4TAMA represented by: Steven R. Fox, Esq. THE FOX LAW CORPORATION INC. E-mail: SRFOX@foxlaw.com In re JJ Bada 464 Operating Corp. Bankr. D.N.J. Case No. 25-11078 Chapter 11 Petition filed February 1, 2025 See https://www.pacermonitor.com/view/WXW6JAI/JJ_Bada_464_Operating_Corp__njbke-25-11078__0001.0.pdf?mcid=tGE4TAMA represented by: Rosemarie E. Matera, Esq. KIRBY AISNER & CURLEY LLP E-mail: jcurley@kacllp.com In re ISA Enterprises, LLC Bankr. D.S.C. Case No. 25-00382 Chapter 11 Petition filed February 1, 2025 See https://www.pacermonitor.com/view/XCWC7WQ/ISA_Enterprises_LLC__scbke-25-00382__0001.0.pdf?mcid=tGE4TAMA represented by: Robert H. Cooper, Esq. THE COOPER LAW FIRM E-mail: rhcooper@thecooperlawfirm.com In re FWR, LLC Bankr. D.S.C. Case No. 25-00384 Chapter 11 Petition filed February 1, 2025 See https://www.pacermonitor.com/view/XXHSBFY/FWR_LLC__scbke-25-00384__0001.0.pdf?mcid=tGE4TAMA represented by: Robert H. Cooper, Esq. THE COOPER LAW FIRM E-mail: rhcooper@thecooperlawfirm.com In re Patrick D. Horace Sr. Bankr. W.D. Tex. Case No. 25-60062 Chapter 11 Petition filed February 1, 2025 See https://www.pacermonitor.com/view/TAVE3AI/Patrick_D_Horace_Sr__txwbke-25-60062__0001.0.pdf?mcid=tGE4TAMA represented by: Bach Norwood, Esq. HAYWARD PLLC Email: bnorwood@haywardfirm.com In re Raymond Kendall Roberts Bankr. W.D. Ark. Case No. 25-70182 Chapter 11 Petition filed February 3, 2025 In re Jeffrey John McNeal and Kristin Cynthia McNeal Bankr. C.D. Cal. Case No. 25-10825 Chapter 11 Petition filed February 3, 2025 represented by: Christopher Langley, Esq. In re Jeffrey G. Rebischung Bankr. N.D. Cal. Case No. 25-10067 Chapter 11 Petition filed February 3, 2025 See https://www.pacermonitor.com/view/NYFTMIA/Jeffrey_G_Rebischung__canbke-25-10067__0001.0.pdf?mcid=tGE4TAMA represented by: Michael Fallon, Esq. LAW OFFICE OF MICHAEL C. FALLON E-mail: mcfallon@fallonlaw.net In re 630 Wayt, LLC Bankr. N.D. Ga. Case No. 25-51091 Chapter 11 Petition filed February 3, 2025 See https://www.pacermonitor.com/view/QNYRFKI/630_Wayt_LLC__ganbke-25-51091__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re A7P Pavilion LLC Bankr. N.D. Ga. Case No. 25-51136 Chapter 11 Petition filed February 3, 2025 See https://www.pacermonitor.com/view/II6RGRA/A7P_Pavilion_LLC__ganbke-25-51136__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re L4L Investment Inc. Bankr. N.D. Ga. Case No. 25-51137 Chapter 11 Petition filed February 3, 2025 See https://www.pacermonitor.com/view/IX3PQVQ/L4L_Investment_Inc__ganbke-25-51137__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re 7 Wales Street, LLC Bankr. D. Mass. Case No. 25-10212 Chapter 11 Petition filed February 3, 2025 See https://www.pacermonitor.com/view/XHCYWEQ/7_Wales_Street_LLC__mabke-25-10212__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Matthew T. Griffin Bankr. D. Mass. Case No. 25-10223 Chapter 11 Petition filed February 3, 2025 represented by: Kate Nicholson, Esq. In re Blair W. Mitchell Bankr. D. Nev. Case No. 25-50089 Chapter 11 Petition filed February 3, 2025 represented by: Stephen Harris, Esq. In re Gary Alan Bedard Bankr. D.N.H. Case No. 25-10062 Chapter 11 Petition filed February 3, 2025 In re 154 Mott Corp Bankr. E.D.N.Y. Case No. 25-70442 Chapter 11 Petition filed February 3, 2025 See https://www.pacermonitor.com/view/ODEO6WA/154_Mott_Corp__nyebke-25-70442__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Ramadan Transportation Solutions Inc. Bankr. W.D.N.C. Case No. 25-30099 Chapter 11 Petition filed February 3, 2025 See https://www.pacermonitor.com/view/ECTF7IY/Ramadan_Transportation_Solutions__ncwbke-25-30099__0001.0.pdf?mcid=tGE4TAMA represented by: Richard S. Wright, Esq. MOON WRIGHT & HOUSTON, PLLC E-mail: rwright@mwhattorneys.com In re 1808 Frankford LLC Bankr. E.D. Pa. Case No. 25-10448 Chapter 11 Petition filed February 3, 2025 See https://www.pacermonitor.com/view/6ISA4KY/1808_Frankford_LLC__paebke-25-10448__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Hamud Ahmad Bankr. E.D. Pa. Case No. 25-10452 Chapter 11 Petition filed February 3, 2025 In re William Conway Gilmore Bankr. S.D. Tex. Case No. 25-30614 Chapter 11 Petition filed February 3, 2025 Filed Pro Se In re Triple KWK, Inc. Bankr. W.D. Tex. Case No. 25-10160 Chapter 11 Petition filed February 3, 2025 See https://www.pacermonitor.com/view/JG4HROA/Triple_KWK_Inc__txwbke-25-10160__0001.0.pdf?mcid=tGE4TAMA represented by: Robert C Lane, Esq. THE LANE LAW FIRM E-mail: notifications@lanelaw.com In re Curtis Anthony Jones Bankr. D. Virgin Islands Case No. 25-10001 Chapter 11 Petition filed February 3, 2025 In re Gregory Edward Barker Bankr. M.D. Fla. Case No. 25-00721 Chapter 11 Petition filed February 4, 2025 See https://www.pacermonitor.com/view/SJGRMQY/Gregory_Edward_Barker__flmbke-25-00721__0001.0.pdf?mcid=tGE4TAMA represented by: Buddy D. Ford, Esq. BUDDY D. FORD, P.A. E-mail: All@tampaesq.com In re Gilgal Medical Supplies, Inc. Bankr. M.D. Fla. Case No. 25-00651 Chapter 11 Petition filed February 4, 2025 See https://www.pacermonitor.com/view/QNNDCWY/Gilgal_Medical_Supplies_Inc__flmbke-25-00651__0001.0.pdf?mcid=tGE4TAMA represented by: Daniel A. Velasquez, Esq. LATHAM LUNA EDEN & BEAUDINE LLP E-mail: dvelasquez@lathamluna.com In re C and D Company LLC Bankr. N.D. Ga. Case No. 25-51159 Chapter 11 Petition filed February 4, 2025 See https://www.pacermonitor.com/view/MW7Q7BQ/C_and_D_Company_LLC__ganbke-25-51159__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Dante F. Lubrico Bankr. N.D. Ill. Case No. 25-01762 Chapter 11 Petition filed February 4, 2025 represented by: Kevin J. Benjamin, Esq. In re JM Grove, LLC Bankr. D. Kan. Case No. 25-20111 Chapter 11 Petition filed February 4, 2025 See https://www.pacermonitor.com/view/2ZMG7PQ/JM_Grove_LLC__ksbke-25-20111__0001.0.pdf?mcid=tGE4TAMA represented by: Colin Gotham, Esq. EVANS & MULLINIX, P.A. E-mail: cgotham@emlawkc.com In re MMK Family Investments, Inc. Bankr. D. Maine Case No. 25-20020 Chapter 11 Petition filed February 4, 2025 See https://www.pacermonitor.com/view/QXEY5GQ/MMK_Family_Investments_Inc__mebke-25-20020__0001.0.pdf?mcid=tGE4TAMA represented by: Adam Prescott, Esq. BERNSTEIN SHUR SAWYER & NELSON, P.A. E-mail: aprescott@bernsteinshur.com In re MMK Subs, LLC Bankr. D. Maine Case No. 25-20019 Chapter 11 Petition filed February 4, 2025 See https://www.pacermonitor.com/view/TWZJJCI/MMK_Subs_LLC__mebke-25-20019__0001.0.pdf?mcid=tGE4TAMA represented by: Adam Prescott, Esq. BERNSTEIN SHUR SAWYER & NELSON, P.A. E-mail: aprescott@bernsteinshur.com In re Meridian Weight Management Center, LLC Bankr. S.D. Miss. Case No. 25-00302 Chapter 11 Petition filed February 4, 2025 See https://www.pacermonitor.com/view/XSJACTI/Meridian_Weight_Management_Center__mssbke-25-00302__0001.0.pdf?mcid=tGE4TAMA represented by: Douglas M. Engell, Esq. DOUG ENGELL E-mail: dengell@dougengell.com In re Angela's Bridals, Inc. Bankr. N.D.N.Y. Case No. 25-10119 Chapter 11 Petition filed February 4, 2025 See https://www.pacermonitor.com/view/RMGSP6Y/Angelas_Bridals_Inc__nynbke-25-10119__0001.0.pdf?mcid=tGE4TAMA represented by: Michael Boyle, Esq. BOYLE LEGAL LLC E-mail: mike@boylebankruptcy.com In re Riome Plumbing & Mechanical LLC Bankr. D.N.J. Case No. 25-11194 Chapter 11 Petition filed February 4, 2025 See https://www.pacermonitor.com/view/7NQOL5I/Riome_Plumbing__Mechanical_LLC__njbke-25-11194__0001.0.pdf?mcid=tGE4TAMA represented by: David A. Kasen, Esq. KASEN & KASEN, P.C. E-mail: dkasen@kasenlaw.com In re Kenrick L. Cort Bankr. E.D.N.Y. Case No. 25-40556 Chapter 11 Petition filed February 4, 2025 represented by: Julio Portilla, Esq. In re Osman Bessa Bankr. S.D.N.Y. Case No. 25-10225 Chapter 11 Petition filed February 4, 2025 In re Migdol Kings LLC Bankr. S.D.N.Y. Case No. 25-35131 Chapter 11 Petition filed February 4, 2025 See https://www.pacermonitor.com/view/KMWJYUQ/Migdol_Kings_LLC__nysbke-25-35131__0001.0.pdf?mcid=tGE4TAMA represented by: H Bruce Bronson, Esq. BRONSON LAW OFFICES PC E-mail: hbbronson@bronsonlaw.net In re Gotstuff, Inc. Bankr. N.D. Tex. Case No. 25-30448 Chapter 11 Petition filed February 4, 2025 See https://www.pacermonitor.com/view/2VLCIAY/Gotstuff_Inc__txnbke-25-30448__0001.0.pdf?mcid=tGE4TAMA represented by: Joyce W. Lindauer, Esq. ATTORNEY AT LAW & MEDIATOR E-mail: joyce@joycelindauer.com ********* 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. 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