/raid1/www/Hosts/bankrupt/TCR_Public/250213.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 13, 2025, Vol. 29, No. 43
Headlines
2617-23 FOSTER AVE: Files Chapter 11 Bankruptcy in New York
3RP RECYCLING: Files Chapter 11 Bankruptcy in Arkansas
ACCURIDE CORP: Judge Poised to Approve Lender Takeover Plan
AGEMY FAMILY: Case Summary & 20 Largest Unsecured Creditors
ALLEN MEDIA: Refinances Revolving Credit Facility
AMITY COURT: Case Summary & 20 Largest Unsecured Creditors
ANTIGONE SKOULAS DDS: Case Summary & 15 Unsecured Creditors
ARTEX TELECOMMUNICATIONS: Case Summary & 20 Unsecured Creditors
AVALON DERM: Section 341(a) Meeting of Creditors on March 17
BAYSHORE SUITES: Case Summary & Seven Unsecured Creditors
BCPE NORTH: S&P Upgrades ICR to 'B-', Outlook Stable
BENK GROUP: Gets Final OK to Use Cash Collateral
CENTURY GRANITE: Marble Business Sale at Public Auction OK'd
CMB DATA: Gets Final OK to Use Cash Collateral
COR HOLDINGS: Property Sale Proceeds to Fund Plan Payments
CPPIB OVM: $100MM Term Loan Add-on No Impact on Moody's 'B2' CFR
CREDITO REAL S.A.B.: Chapter 15 Case Summary
CYBEREASON INC: CEO Sues Investors Over Funding Plan Rejection
CYT MAINTENANCE: Unsecureds to Get 28 Cents on Dollar in Plan
DAYBREAK OIL: Director Darren Williams Steps Down
ENERGYSOLUTIONS LLC: Moody's Alters Outlook on B2 CFR to Positive
EURO CONSTRUCTION: Continued Operations to Fund Plan Payments
GLOBAL VALUES: Court OKs Elberton Property Sale at Auction
GLOBALSTAR INC: Effects Reverse Stock Split at 1:15 Ratio
GUARDIAN ELDER: Committee Can't Pursue Causes of Action v S&T Bank
H6 COMPANY: Court OKs Tractor & Trailer Sale
HALO BUYER: S&P Withdraws 'CCC+' Issuer Credit Rating
HAMILTON PROJECTS: S&P Affirms 'BB-' Rating on Secured Term Loan B
HAMMER FIBER: Incurs $1.23 Million Net Loss in FY Ended July 31
HANSEN KIDS: Case Summary & 11 Unsecured Creditors
HAYDALE CERAMIC: Seeks Chapter 11 Bankruptcy Protection in Georgia
HEXCEL CORP: S&P Rates $300MM Senior Unsecured Debt Offering 'BB+'
INVERSIONES ALFA: Seeks Chapter 11 Bankruptcy Protection in Florida
J&K SAI HOSPITALITY: U.S. Trustee Unable to Appoint Committee
JAGUAR HEALTH: Extends $6.2 Million Note Maturity to July 20
JAGUAR HEALTH: Issues 1.29M Shares to Reduce Royalty by $1.09M
JGA DEVELOPMENT: Seeks to Sell Plainfield Property in Private Sale
KINGSMAN REAL ESTATE: Voluntary Chapter 11 Case Summary
LIGHT & WONDER: S&P Rates Secured Revolving Credit Facility 'BB'
LONG RIDE: Fitch Assigns 'B+(EXP)' Issuer Credit Rating
LUKITAS INC: Gets Final OK to Use Cash Collateral Until July 18
MARINUS PHARMACEUTICALS: Morgan Stanley Reports 6% Stake
MATCH GROUP: Moody's Affirms 'Ba2' CFR, Outlook Stable
MEMSTAR USA: Sec. 341(a) Meeting of Creditors on March 19
MENORAH CAMPUS: Seeks Chapter 11 Bankruptcy Protection in New York
MMK FAMILY: Gets Interim OK to Use Cash Collateral
MMK SUBS: Gets Interim OK to Use Cash Collateral
MULTIBAND FIELD: Voluntary Chapter 11 Case Summary
MYOMO INC: Rosalind Advisors Holds 9.9% Stake as of Dec. 31
NATUS MEDICAL: Moody's Affirms 'B3' CFR, Outlook Stable
NORTH LIBERTY: U.S. Trustee Unable to Appoint Committee
NORTHVOLT AB: Ontario Fund Reduces Value of $400MM Investment
NU STYLE LANDSCAPE: Court OKs Appointment of Examiner
NUTRACAP HOLDINGS: Chapter 11 Trustee Appointment Sought
OMEGA THERAPEUTICS: Case Summary & 20 Largest Unsecured Creditors
ORSIPEL V LLC: Sec. 341(a) Meeting of Creditors on March 6
PARAMOUNT RESOURCES: Moody's Lowers CFR to 'B1', Outlook Stable
PERFECTION AUTO: To Sell Automobile Body Shop to JHCC Holdings
PMHC II: S&P Affirms 'B-' ICR on Elevated Debt Leverage
POWER BLOCK: Creditors' Committee Files Competing Plan
RAPID DRY: Gets Extension to Access Cash Collateral
REDFIN CORP: Plans to Revamp Rental Division, Cut 450 Jobs
REITER BROTHERS: U.S. Trustee Unable to Appoint Committee
RIVER DREAMERS: U.S. Trustee Unable to Appoint Committee
ROGERS COMMUNICATIONS: Moody's Rates New Subordinated Notes 'Ba1'
RONTAN ELETRO: Chapter 15 Case Summary
ROSA COPLON: Files Chapter 11 Bankruptcy in New York
ROTI RESTAURANTS: To Sell Catering Van to Broadpeak
SAM'S CRAB: Gets Interim OK to Use Cash Collateral Until Feb. 26
SOLDIER OPERATING: Seeks to Extend Plan Filing Deadline to Feb. 28
SOUTHERN COLONEL: Voluntary Chapter 11 Case Summary
SPEARMAN AEROSPACE: Sec. 341(a) Meeting of Creditors on March 4
SPIRIT AIRLINES: Declines Another Offer From Frontier
SRZ MASTER TENANT: Sec. 341(a) Meeting of Creditors on March 10
STICKY'S HOLDINGS: Wants to Convert Chapter 11 to Chapter 7
STONEX GROUP: Moody's Affirms 'Ba3' Issuer & Secured Notes Rating
SUGARHOUSE HSP: S&P Raises ICR to 'B+' Then Withdraws Rating
SUGARLOAF VENTURES: Unsecureds Will Get 100% of Claims in Plan
SULLIVANS DISTRIBUTIONS: Voluntary Chapter 11 Case Summary
SVP HOLDINGS: S&P Upgrades ICR to 'B' on Merger Close
TURK TRANSPORTATION: Case Summary & 20 Top Unsecured Creditors
UNIVERSAL HEALTH: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
VALLEY PARK: Gets Interim OK to Use Cash Collateral
VOSSEKUIL PROPERTIES: Case Summary & Three Unsecured Creditors
WILD EARTH: Case Summary & 20 Largest Unsecured Creditors
WINWARD DESIGN: Seeks Chapter 11 Bankruptcy in Florida
WORLD WIDE TECHNOLOGY: S&P Affirms 'BB' ICR, Outlook Stable
WORLDWIDE IMPORTS: Files Chapter 11 Bankruptcy in Mississippi
YORK BEACH SURF: Seeks Chapter 11 Bankruptcy Protection in Maine
Z BRAND: Seeks Cash Collateral Access
ZMETRA LAND: Seeks to Use $462,282 in Cash Collateral
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
2617-23 FOSTER AVE: Files Chapter 11 Bankruptcy in New York
-----------------------------------------------------------
On February 7, 2025, 2617-23 Foster Ave. Realty Corp. filed
Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern
District of New York.
According to court filing, the Debtor reports $1,366,075 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About 2617-23 Foster Ave. Realty Corp.
2617-23 Foster Ave. Realty Corp. operates in the real estate
sector. The Debtor owns the property located at 2617-23 Foster
Ave., Brooklyn, New York 11210, with an estimated value of $1.4
million.
2617-23 Foster Ave. Realty Corp. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y.Case No. 25-40624) on
February 7, 2025. In its petition, the Debtor reports total assets
of $1,486,155 and total liabilities of $1,366,075.
Honorable Bankruptcy Judge Jil Mazer-Marino handles the case.
The Debtor is represented by Alex E. Tsionis, Esq., at Law Offices
of Avrum J. Rosen, PLLC, in Huntington, New York.
3RP RECYCLING: Files Chapter 11 Bankruptcy in Arkansas
------------------------------------------------------
On February 3, 2025, 3RP Recycling LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Eastern District of
Arkansas.
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 3RP Recycling LLC
3RP Recycling LLC, dba 3 Rivers Plastics, specializes in recycling
heavily soiled plastic film materials, including those contaminated
with fats, oils, grease, dirt, and other organic substances. Its
state-of-the-art facility uses advanced sorting, cleaning, and
processing techniques to efficiently handle and recycle these
materials into high-quality plastic pellets. The Company provides
sustainable solutions for managing difficult-to-recycle plastic
waste, ensuring efficient processing and environmental
responsibility.
3RP Recycling LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Ark. Case No. 25-10414) on February
3, 2025. In its petition, the Debtor reports estimated assets
between $500,000 and $1 million and estimated liabilities between
$1 million and $10 million.
Honorable Bankruptcy Judge Phyllis M. Jones handles the case.
The Debtor is represented by:
Kevin P. Keech, Esq.
KEECH LAW FIRM, PA
POB 194
Amity, AR 71921
Tel: 501-221-3200
Fax: 501 221 3201
E-mail: kkeech@keechlawfirm.com
ACCURIDE CORP: Judge Poised to Approve Lender Takeover Plan
-----------------------------------------------------------
Dorothy Ma of Bloomberg Law reports that on February 11, 2025, a
bankruptcy judge said she will approve Accuride Corp.'s
reorganization plan, allowing the wheel maker, backed by private
equity firm Crestview Partners, to proceed.
Under the plan, DIP lenders will receive 95% of the new equity,
while prepetition term loan lenders will get 5% on a pro-rata
basis, according to court filings.
The DIP lenders, comprising a majority of prepetition term loan
lenders, have provided approximately $130 million in DIP financing.
Court documents identify KKR & Co., Guggenheim, and Caspian Capital
as some of the pre-petition term loan lenders, the report states.
About Accuride Corp.
Accuride Corporation and its affiliates are a global leader in
steel and aluminum wheels and wheel-end components and assemblies,
supplying innovative products to over 1,000 customers in the
commercial vehicles, passenger cars, agriculture, construction and
industrial equipment markets.
Headquartered in Livonia, Michigan, the Debtors are part of a
global enterprise that employs approximately 3,600 individuals at
facilities in the United States, Canada, Mexico, Germany, France,
Turkey, Russia, and China.
Accuride's U.S. entities first filed for Chapter 11 protection in
October 2009, also in Delaware, to restructure in excess of $675
million in debt. The Court confirmed the Company's Plan of
Reorganization in February 2010.
On Oct. 9, 2024, Accuride Corp. and its U.S. entities filed
voluntary petitions for protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12289). Accuride
reported $500 million to $1 billion in assets and liabilities as of
the bankruptcy filing.
In the new Chapter 11 cases, the Debtors tapped Kirkland & Ellis
LLP as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP, as
local bankruptcy counsel; Quinn Emanuel Urquhart & Sullivan, LLP as
special counsel; Perella Weinberg Partners LP as investment banker;
and Deloitte & Touche LLP as independent auditor. Alvarez & Marsal
North America, LLC is the CRO provider and Omni Agent Solutions is
the claims agent.
On Dec. 10, 2024, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped McDermott Will & Emery LLP as counsel.
AGEMY FAMILY: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Agemy Family Corporation
d/b/a Quality Plus Dry Cleaners
9945 Race Track Road
Tampa, FL 33626
Business Description: Agemy Family Corporation, operating as
Quality Plus Dry Cleaners, offers
professional dry cleaning, laundry services,
and clothing alterations. They provide
same-day service, along with convenient
pickup and delivery options.
Chapter 11 Petition Date: February 9, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00814
Judge: Hon. Roberta A Colton
Debtor's Counsel: David W. Steen, Esq.
DAVID W. STEEN, P.A.
P.O. Box 270394
Tampa, FL 33688
Tel: 813-251-3000
E-mail: dwsteen@dsteenpa.comS
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Allie Hassan Agemy 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/VJXGRUI/Agemy_Family_Corporation_dba_Quality__flmbke-25-00814__0001.0.pdf?mcid=tGE4TAMA
ALLEN MEDIA: Refinances Revolving Credit Facility
-------------------------------------------------
Rene Ismail of Bloomberg Law reports that Allen Media Group has
refinanced its $100 million revolving credit facility, extending
debt maturities to 2027, according to a press release issued
Monday, February 10, 2025.
Byron Allen's media company, which owns The Weather Channel and
several television stations, previously held confidential
negotiations with creditors, as reported by Bloomberg.
In January, S&P placed all of Allen Media's ratings under review
for a potential downgrade, citing the February 10, 2025 maturity
date of its nearly fully utilized $100 million credit facility.
About Allen Media
Allen Media LLC operates as a media company. The Company
specializes in video production, photography, senior pictures,
business portraits, graphic design work, photo editing, and
screenplay analysis services.
AMITY COURT: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Amity Court LLC
14400 NE Bel Red Rd., Ste 204
Bellevue, WA 98007
Business Description: The Debtor is the owner of the property
situated at 14400 Northeast Bellevue-Redmond
Road, Bellevue, Washington 98007, which has
an appraised value of $7.78 million.
Chapter 11 Petition Date: February 11, 2025
Court: United States Bankruptcy Court
Eastern District of Washington
Case No.: 25-00240
Judge: Hon. Whitman L Holt
Debtor's Counsel: James L. Day, Esq.
BUSH KORNFELD LLP
601 Union St., Suite 5000
Seattle, WA 98101-2373
Tel: (206) 292-2110
Fax: (206) 292-2104
E-mail: jday@bskd.com
Total Assets: $7,988,279
Total Liabilities: $5,775,823
The petition was signed by Stanley Xu as authorized person.
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/2ZAFGOY/Amity_Court_LLC__waebke-25-00240__0001.0.pdf?mcid=tGE4TAMA
ANTIGONE SKOULAS DDS: Case Summary & 15 Unsecured Creditors
-----------------------------------------------------------
Debtor: Antigone Skoulas D.D.S., Inc.
450 Sutter Street, Suite 1616
San Francisco, CA 94108
Business Description: The Debtor is a dental practice in San
Francisco specializing in cosmetic and
restorative dentistry, offering services
like implant restorations, Invisalign,
dentures, and TMJ treatment. With a focus
on advanced digital technology and artistic
expertise, the practice provides
compassionate care and exceptional results
to help patients achieve their best smiles.
Chapter 11 Petition Date: February 9, 2025
Court: United States Bankruptcy Court
Northern District of California
Case No.: 25-30100
Judge: Hon. Hannah L. Blumenstiel
Debtor's Counsel: Brent D. Meyer, Esq.
MEYER LAW GROUP, LLP
268 Bush Street #3639
San Francisco, CA 94104
Tel: (415) 765-1588
Fax: (415) 762-5277
E-mail: brent@meyerllp.com
Total Assets: $133,991
Total Liabilities: $1,568,196
The petition was signed by Antigone Skoulas as president.
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/WD2UT2I/Antigone_Skoulas_DDS_Inc__canbke-25-30100__0001.0.pdf?mcid=tGE4TAMA
ARTEX TELECOMMUNICATIONS: Case Summary & 20 Unsecured Creditors
---------------------------------------------------------------
Debtor: Artex Telecommunications LLC
1960 Tapadero Lane
Celina, TX 75009
Business Description: Artex Telecommunications LLC is a
telecommunications company operating in the
telephone services industry. In addition to
its core services, Artex Telecommunications
LLC is also involved in various construction
projects, including the installation of
underground cables and utility systems.
Chapter 11 Petition Date: February 10, 2025
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 25-40361
Judge: Hon. Brenda T. Rhoades
Debtor's Counsel: Robert T DeMarco, Esq.
DEMARCO MITCHELL, PLLC
12770 Coit Road, Suite 850
Dallas, TX 75251
Tel: (972) 991-5591
E-mail: robert@demarcomitchell.com
Total Assets: $142,200
Total Liabilities: $2,606,260
The petition was signed by Eric Shaffer as managing member.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/BF3FWDQ/Artex_Telecommunications_LLC__txebke-25-40361__0001.0.pdf?mcid=tGE4TAMA
AVALON DERM: Section 341(a) Meeting of Creditors on March 17
------------------------------------------------------------
On February 5, 2025, Avalon Derm Realty LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of New York.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on March 17,
2025 at 12:45 PM at Telephonic Meeting: Phone 1 (877) 929-2553,
Participant Code 1576337#.
About Avalon Derm Realty LLC
Avalon Derm Realty LLC is a limited liability company.
Avalon Derm Realty LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-40585) on February 5,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Elizabeth S. Stong handles the case.
The Debtor is represented by:
Narissa A. Joseph, Esq.
NARISSA JOSEPH
305 Broadway, Suite 1001
Suite 1001
New York, NY 10007
Tel: (212) 233-3060
Fax: (646) 607-3335
E-mail: njosephlaw@aol.com
BAYSHORE SUITES: Case Summary & Seven Unsecured Creditors
---------------------------------------------------------
Debtor: Bayshore Suites LLC
3200 Bayshore Drive
Naples FL 34112
Business Description: Bayshore Suites owns two properties: one at
3200-3248 Bayshore Dr., Naples, FL 34112,
valued at $4.6 million in liquidation, and
another at 2836 Shoreview Dr., Naples, FL
34112, with a liquidation value of $1
million.
Chapter 11 Petition Date: February 11, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-00218
Judge: Hon. Caryl E Delano
Debtor's Counsel: Michael Dal Lago, Esq.
DAL LAGO LAW
999 Vanderbilt Beach Rd. Suite 200
Naples FL 34108
Tel: 239-571-6877
E-mail: mike@dallagolaw.com
Total Assets: $5,631,222
Total Liabilities: $7,297,236
The petition was signed by Diane Sullivan as manager.
A copy of the Debtor's list of seven unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/MKXNAWY/Bayshore_Suites_LLC__flmbke-25-00218__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/7TRANYA/Bayshore_Suites_LLC__flmbke-25-00218__0001.0.pdf?mcid=tGE4TAMA
BCPE NORTH: S&P Upgrades ICR to 'B-', Outlook Stable
----------------------------------------------------
S&P Global Ratings raised its issuer credit rating on BCPE North
Star Holdings to 'B-' from 'CCC+' on proposed liquidity improvement
and revised the outlook to stable from negative.
Concurrently, S&P raised its issue-level rating on its $155 million
revolving credit facility and the $1.1 billion first-lien term loan
(full amount includes the incremental $185 million) to 'B-' from
'CCC+'. S&P also raised its issue-level rating on the company's
$245 million second-lien term loan to 'CCC' from 'CCC-'. The
recovery ratings remain '3' on the first-lien facility and '6' on
the second-lien facility.
S&P said, "The stable outlook reflects our expectation that DH will
generate positive free operating cash flow (FOCF), maintain EBITDA
interest coverage at or above 1.5x, and improve leverage to the
low-7x area by the end of fiscal 2025 from 8.3x at close of the
proposed transaction.
"The proposed transaction improves DH's liquidity position and
alleviates near-term refinancing risk. We revised our liquidity
assessment to adequate from less than adequate. Pro forma for the
transaction, we estimate the company will have about $174 million
of total liquidity, including $19 million pro forma cash and full
availability under the $155 million revolver. We believe this
transaction will provide sufficient cushion to support its uses of
liquidity without the need to rely on external sources, including
shareholder loans from its financial sponsor. The $155 million
revolver will mature in June 2028 if DH completes the transaction
as proposed. We view this as credit positive because its revolver
would have otherwise become current in June 2025. The $1.1 billion
first-lien term loan matures in June 2028 and $245 million
second-lien term loan in June 2029. They provide DH time to further
strengthen its operating performance and cash-generating capacity
before those facilities need to be addressed.
"The upgrade incorporates our expectation for profitability and
cash flow improvements and EBITDA interest coverage of more than
1.5x in 2025. We estimate DH's revenue growth of about 8% in fiscal
2024 came from volume expansion of about 4% with about 3%
contribution from pricing gains and 1% from the acquisition of
Kenny's Great Pies. S&P Global Ratings-adjusted EBITDA margin was
flat compared to fiscal 2023 as benefits from higher volumes were
offset by commodity inflation related to dairy and cocoa, and cyber
security incident-related expenses. However, DH's free cash flow
remained negative and was weaker than our previous expectations,
mainly because the company incurred very high interest costs and
used high working capital spending to increase inventory. Due to
the weaker cash flow, we estimate leverage will be about 8.3x for
the 12 months ended Dec. 31, 2024, compared with our expectation of
8x but lower than 8.6x for the prior-year period ending Dec. 31,
2023.
"Although some key customers in the food service segment have faced
overall volume declines, we expect demand for DH's premium desserts
to remain robust across both retail and food service channels,
driven by consumers' continued desire to indulge. DH won new
customers and launched new items with several customers that should
provide incremental volume growth in fiscal 2025. These factors
support our expectation of about a 7.3% revenue increase in fiscal
2025. Notwithstanding high input costs, we believe profitability
will benefit from price increases to offset these costs, higher
volumes, and continuing improvement in manufacturing efficiencies.
In addition, the company will benefit from the lapping of
nonrecurring expenses related to the Kenny's acquisition and a
cyber security incident, as well as the realization of synergies
from acquisitions. Higher IT expenses to support its enterprise
resource planning conversion and one-time investments to improve
productivity will offset them.
"As a result, we forecast S&P Global Ratings-adjusted EBITDA margin
will increase by 140 basis points (bps). We believe the proposed
transaction will increase interest rate expense about $3 million in
fiscal 2025 from fiscal 2024. Nevertheless, we forecast DH will
generate about $5 million of FOCF in fiscal 2025, largely due to
higher profitability and lower working capital needs. We also
forecast EBITDA to cash interest coverage will improve to 1.6x in
fiscal 2025.
"We expect inflationary headwinds, but price increases and
productivity actions should largely mitigate them. While market
prices for dairy (DH's largest commodity exposure) have receded
from highs in 2024, high inflation continues across other key
commodities, including eggs and cocoa. We believe the company can
largely offset most of the inflation through price increases.
Historically, the company has not reported any material decline in
volumes from higher prices. Moreover, DH has contracted its supply
for these ingredients over the next 6-12 months at lower rates to
shield profitability. The company plans to continue to leverage its
scale to optimize procurement costs by sourcing raw materials at
favorable rates. It is also working on productivity initiatives
aimed at lowering its transportation costs and consolidating its
warehouse network and distribution capabilities to improve product
positioning geographically and customer service efficiency. We
believe these initiatives will lower operating costs and improve
profitability.
"Financial sponsor ownership and acquisition strategy will likely
keep S&P Global Ratings-adjusted debt to EBITDA over 5x. DH has a
history of undertaking debt-funded acquisitions, which has
sustained very high leverage over 7x. While we believe the company
can reduce leverage below 7x on profit growth, its acquisition
strategy and financial sponsor ownership may prevent S&P Global
Ratings-adjusted leverage from declining below 5x over the longer
term. On May 15, 2024, DH completed the acquisition of Kenny's
Great Pies, funded with incremental borrowings under its first-lien
credit facilities. Prior acquisitions include Steven Charles and
Dianne's Fine Desserts in 2022, Atlanta Cheesecake in 2018, and
Lawler Foods in 2016. We expect DH to prioritize investment in the
business to expand its portfolio, scale, capabilities, and
geographic presence through opportunistic acquisitions.
"The stable outlook reflects our expectation that Dessert Holdings
will generate positive FOCF, maintain EBITDA interest coverage at
or above 1.5x, and improve leverage to the low-7x area by the end
of fiscal 2025 from 8.3x at close of the proposed transaction.
"We could lower the ratings if we believe the company's capital
structure has become unsustainable due to a deterioration in free
cash flow, interest coverage dropping below 1.5x, and/or liquidity
constraints." This could happen if it:
-- Cannot offset intensified commodity inflation, leading to
profitability decline;
-- Faces lower demand for its products due to a shift in consumer
preferences;
-- Confronts major manufacturing difficulties resulting in loss of
key customers, lower sales, and weaker overhead absorption; or
-- Adopts more aggressive financial policies such as large
debt-financed acquisitions or dividends.
S&P could raise the ratings if DH sustains leverage below 6.5x,
generates positive FOCF, and improves scale. S&P believes this
could happen if the company:
-- Deleverages through sustained organic top-line growth in both
the retail and food service channels, while managing through
commodity and logistics cost inflation; and
-- Demonstrates conservative financial policies by not making
large, debt-financed dividends or acquisitions.
BENK GROUP: Gets Final OK to Use Cash Collateral
------------------------------------------------
The Benk Group, LLC received final approval from the U.S.
Bankruptcy Court for the Eastern District of Texas to use cash
collateral.
The final order approved the use of cash collateral to pay the
expenses set forth in the company's 30-day budget, with a 10%
variance allowed.
The 30-day budget projects total expenses of $136,501.33.
First Internet Bank of Indiana asserts an interest in the cash
collateral. As protection, the secured lender was granted
replacement liens on the company's equipment, inventory and
accounts whether such property was acquired before or after the
company's Chapter filing.
In addition, First Internet Bank of Indiana will receive a monthly
payment of $13,451.33 starting this month.
About The Benk Group
The Benk Group, LLC operates as Emerald Cut Lawn & Landscape, a
Texas-based landscaping services provider established in 1985 and
maintains operations in Celina and Cedar Hill, Texas. The company
provides residential and commercial landscaping services including
lawn care, tree trimming, and landscape design.
The Benk Group filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. E.D. Texas Case No. 25-40100) on
January 14, 2025, listing between $1 million and $10 million in
both assets and liabilities. Mark Weisbart of Hayward, PLLC serves
as Subchapter V trustee.
Judge Brenda T. Rhoades handles the case.
The Debtor is represented by Robert DeMarco, III, Esq.
First Internet Bank, as lender, is represented by:
Mark A. Platt, Esq.
Frost Brown Todd, LLP
2101 Cedar Springs Road, Suite 900
Dallas, TX 75201
Phone: (214) 580-5852
Fax: (214) 545-3473
mplatt@fbtlaw.com
CENTURY GRANITE: Marble Business Sale at Public Auction OK'd
------------------------------------------------------------
Century Granite Company Inc. received the green light from the U.S.
Bankruptcy Court for the Middle District of Georgia, Athens
Division, to sell substantially all of its real and personal
property, free and clear of all liens, claims, encumbrances, and
interests by public auction.
The Debtor is a manufacturing company headquartered in Elberton,
Georgia, which specializes in the
manufacture and sale of marble and granite products that are used
in the monuments industry.
The Debtor is authorized to enter agreements with the Weeks Group
LLC for the auction of the Asset and the auction listing contract
with exclusive right to sell of the property.
Weeks will, via public auction, sell all of the Debtor's real
property to the highest bidder, free and clear of all liens,
claims, encumbrances, and interests, following a competitive
bidding process, with a 10% buyer's premium being paid to Weeks as
its compensation and with promotion costs and actual selling costs
including, without limitation, advances made by Weeks for the
Debtor's property insurance (estimated at in the amount of at least
$62,768.94) payable by the Debtor from the sale proceeds. The Real
Property Sale Expenses are estimated at $77,809.94 (including the
Insurance Advances).
For the Equipment Agreement, Weeks will, via auction, sell all of
Debtor's tangible personal property and, if the Debtor consents
before the auction, the Debtor’s intangible personal property
wherever it is located to the highest bidder(s), free and clear of
all liens, claims, encumbrances, and interests following a
competitive bidding process, with a 10% buyer's premium (payable by
the winning bidders) being paid to Weeks, a 10% selling commission
(payable out of the proceeds) being paid to Weeks, and promotion
costs and actual selling costs (including otherwise unpaid
Insurance Advances) being reimbursed to Weeks as its compensation
and reimbursement. The Personal Property Sale Expenses are
estimated at $42,205.00 (exclusive of the Insurance Advances).
The Debtor is ordered to pay all usual, customary, and reasonable
costs associated with the auction and sale as agreed by the parties
to the Auction Contracts (including, without limitation, the
commissions and premiums and sale expenses to Weeks in accordance
with the Auction Contracts and the Insurance
Advances.
The reserve auction price on the Real Property shall be $650,000.00
or such other lower amount that First Bank communicates to Weeks
before the Real Property auction.
The Court also found that there is no just reason for delay in the
implementation of the Order and that the auction process can begin
immediately upon entry of the Order.
About Century Granite Company Inc.
Century Granite Company, Inc., is a manufacturing company that
specializes in the manufacture and sale of marble and granite
products that are used in the monuments industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Ga. Case No. 23-30611) on Dec. 4,
2023. In the petition signed by Anand S. Anandan, president/CEO,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Austin E Carter presides over the case.
David L. Bury, Jr., Esq., at Stone & Baxter, LLP, is the Debtor's
legal counsel.
CMB DATA: Gets Final OK to Use Cash Collateral
----------------------------------------------
CMB Data Entry Services, LLC received final approval from the U.S.
Bankruptcy Court for the Western District of Pennsylvania to use
cash collateral.
The company must operate within 10% of its budget until further
court order.
Pre-bankruptcy liens of creditors will continue post-petition but
cannot exceed their original value at the start of the Chapter 11
case.
CMB is not allowed to incur post-petition debts that cannot be paid
or take on post-petition financing without court approval.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/265Yo from PacerMonitor.com.
About CMB Data Entry Services
CMB Data Entry Services, LLC, doing business as Axion Data
Services, is a limited liability company in Bethel Park, Pa.
CMB filed Chapter 11 petition (Bankr. W.D. Pa. Case No. 24-23131)
on December 27, 2024. In its petition, the Debtor reported up to
$50,000 in assets and between $1 million and $10 million in
liabilities.
Judge John C. Melaragno oversees the case.
The Debtor is represented by Christopher M. Frye, Esq., at Steidl &
Steinberg.
COR HOLDINGS: Property Sale Proceeds to Fund Plan Payments
----------------------------------------------------------
Fairbridge Real Estate Investment Trust, LLC f/k/a Realfi Real
Estate Investment Trust, LLC, submitted a Disclosure Statement
describing Chapter 11 Plan for Cor Holdings, LLC dated January 30,
2025.
According to the petition and schedules filed in this Chapter 11
case, the Debtor claims to be the sole member of Little Falls
Garden Apartments, LLC, Robinhood Properties LLC and Brookview Town
House LLC a/k/a Brookview Town Houses LLC.
On or about October 16, 2020, Fairbridge loaned $2,250,000.00 to
the Debtor and to other non-debtor entities, Little Falls,
Robinhood, Brookview (collectively, the "Borrowers"). Fairbridge's
loan to the Borrowers was evidenced by, among other things, a
consolidated mortgage note, dated as of October 16, 2020, made by
the Borrowers in favor of Fairbridge in the principal sum of
$2,250,000.00 (the "Consolidated Note").
The Consolidated Note was secured by a Mortgage Consolidation,
Modification and Extension Agreement, dated as of October 16, 2020,
by and between the Debtor, Little Falls, Robinhood, and Brookview,
as mortgagors (collectively, the "Mortgagors"), and Fairbridge, as
mortgagee (the "Consolidated Mortgage"), covering the Little Falls
Property, the Robinhood Property, and the Brookview Property
(hereinafter collectively referred to as the "Mortgaged Property").
The Debtor is a maker and obligor under the Consolidated Note.
The Borrowers and the Guarantor failed to cure the payment defaults
referenced in Fairbridge's July 13, 2022 notice of default. As a
result of these defaults, on September 13, 2022, Fairbridge
commenced a foreclosure action in the Supreme Court of the State of
New York, Montgomery County the (the "Foreclosure Action") seeking
to foreclose its mortgage on each of the Mortgaged Property.
In an effort to frustrate Fairbridge's rights to enforce the
Foreclosure Judgment, Little Falls, Robinhood, Brookview, each
commenced separate Chapter 11 cases on the eve of the foreclosure
sale of their respective properties. Thereafter, the Debtor, in a
further effort to frustrate Fairbridge's rights following the
dismissal of the Robinhood and Brookview bankruptcy cases,
commenced a separate Chapter 11 case on the eve of the foreclosure
sale of the Robinhood Property.
Class 3 consists of Unsecured Claims. On the Effective Date, or as
soon as possible after such Claims become Allowed Claims, each
holder of a Class 3 General Unsecured Claim shall receive from the
Disbursing Agent, unless otherwise agreed in writing between the
Plan Proponent and the holder of such Claim, its Pro Rata payment
of the remaining Cash from the Sale Proceeds after payment of
Administrative Claims, Professional Fee Claims, Priority Tax
Claims, Class 1 Claims, and Class 2 Claims; provided, however, if
the amount of such remaining Cash from the Sale Proceeds available
to pay Allowed Class 3 Claims is less than $50,000.00, Fairbridge
will fund the GUC Contribution for the Pro Rata distribution to
Class 3 General Unsecured Claims pursuant to Section 4.3 of the
Plan.
Class 3 Claims are Impaired, and the holders of General Unsecured
Claims are entitled to vote to accept or reject the Plan. The Plan
Proponent believes that there are no such claims in this case.
Class 4 consists of Equity Interests. On the Effective Date, or as
soon as possible after such Claims become Allowed Claims, each
holder of a Class 3 General Unsecured Claim shall receive from the
Disbursing Agent, unless otherwise agreed in writing between the
Plan Proponent and the holder of such Claim, payment of the
remaining Cash from the Sale Proceeds after payment of
Administrative Claims, Professional Fee Claims, Priority Tax
Claims, Class 1 Claims, and Class 2 Claims.
On the Effective Date, all Interests of Equity shall be
extinguished, and the Debtor shall remain responsible for either
managing or winding down its own affairs, without interfering with
the Disbursing Agent's performance under the Plan. Class 4 Equity
Interests are impaired under the plan.
Payments under the Plan will be paid from either the Sale Proceeds,
Cash turned over by the Debtor to the Disbursing Agent pursuant to
this Section 6.1, and/or Cash to be contributed by Fairbridge. The
Sale Transaction will be implemented pursuant to sections 363 and
1123(a)(5)(D) of the Bankruptcy Code.
Prior to or on the Effective Date, the Robinhood Property and/or
Brookview Property, and the Membership Interests therein, at the
election of Purchaser, shall be sold to the Purchaser, pursuant to
sections 363(f), 1123(a)(5)(D), and 1141(c) of the Bankruptcy Code
free and clear of all Liens (except permitted encumbrances as
determined by the Purchaser, which may include the existing
mortgage lien of Fairbridge, in Fairbridge's sole discretion), with
any such Liens, Claims and encumbrances to attach to the Sale
Proceeds and disbursed in accordance with the provisions of the
Plan.
Only in the event that Fairbridge or its designee is the Purchaser
of the Robinhood Property and/or Brookview Property by credit bid,
or if the Sale Proceeds are insufficient to pay the full amount of
the Allowed Administrative Claims, Professional Fee Claims,
Priority Tax Claims, Class 1 Claims, Class 2 Claims, and Class 3
Claims, Fairbridge shall deliver to the Disbursing Agent for
distribution pursuant to the provisions of the Plan (i) Cash in an
amount sufficient to pay the full amount of the Allowed
Administrative Claims, Professional Fee Claims, Priority Tax
Claims, Class 1 Claims, and (ii) the GUC Contribution.
Except as set forth elsewhere in the Plan, the Plan will be funded
from the Sale Proceeds, any Cash turned over by the Debtor, and, if
necessary, the GUC Contribution. At Closing, the Plan Proponent
shall deliver the Cash to the Disbursing Agent, and the Disbursing
Agent shall segregate sufficient Cash to pay or reserve for all
payments that are to be made pursuant to the terms of the Plan. The
GUC Contribution shall be paid by the Plan Proponent to Sahn Ward
Braff Coschignano PLLC's IOLA account at the closing of the Sale.
The Disbursing Agent shall retain sufficient funds in its IOLA
account to make distributions as provided in the Plan on account of
Allowed Claims, including Allowed Professional Fee Claims and
Bankruptcy Fees.
A full-text copy of the Disclosure Statement dated January 30, 2025
is available at https://urlcurt.com/u?l=FOzDpp from
PacerMonitor.com at no charge.
Attorneys for Fairbridge Real Estate:
Sahn Ward Braff Coschignano PLLC
Andrew Roth, Esq.
Joel M. Shafferman, Esq.
333 Earle Ovington Blvd Ste 601,
Uniondale, New York 11553
About Cor Holdings LLC
Cor Holdings LLC is engaged in activities related to real estate.
The Debtor has affiliate interests in multi dwellings rental
property located in Fonda, NY having an appraised value of $2
million and a real estate property located in Granville, NY having
an appraised value of $800,000.
Cor Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-35719) on July 23,
2024. In the petition filed by David Raven, as president, the
Debtor reports total assets of $2,806,500 and total liabilities of
$4,134,115.
The Debtor is represented by Robert Lewis, Esq. at ROBERT S LEWIS
PC.
CPPIB OVM: $100MM Term Loan Add-on No Impact on Moody's 'B2' CFR
----------------------------------------------------------------
Moody's Ratings commented that CPPIB OVM Member US LLC's (CPPIB
OVM) ratings, including its B2 Corporate Family Rating and its B2
senior secured bank credit facility rating, and stable outlook are
not affected by its proposed repricing and $100 million add-on to
its senior secured 1st lien Term Loan B. The proceeds from the
proposed add-on will be used to fund a shareholder distribution.
The add-on will be fungible with the existing Term Loan B,
resulting in a pro forma total amount outstanding of $700 million.
Despite the increased debt burden, Moody's expect CPPIB OVM's pro
forma year-end 2024 debt/EBITDA to be about 4x given continued
EBITDA growth – a level consistent with Moody's expectations for
the rating.
CPPIB OVM's B2 CFR reflects its 35% ownership in the Ohio Valley
Midstream LLC (OVM) joint venture with The Williams Companies, Inc.
(Williams, Baa2 stable), the JV's well-positioned operations in the
Marcellus and Utica shales, as well as its strong contractual
rights and expected influence on key decisions of the JV. OVM's
contracts are 100% fee-based, eliminating direct commodity price
risk; however, less than 15% of these contracts have minimum volume
commitments (MVCs), relying predominantly on acreage dedications
and exposing OVM to volume risk. CPPIB OVM's credit profile is
somewhat constrained by the weighted average (by revenue) credit
quality of its customers, which is low to mid-Ba, though its
remaining weighted average contract life is supportive at about
eight years.
The B2 secured term loan rating, consistent with the B2 CFR,
reflects its status as the only debt in CPPIB OVM's capital
structure. The term loan is secured by a pledge of CPPIB OVM's
equity interest in the JV and security interest in substantially
all of its assets.
The stable rating outlook reflects Moody's expectation that CPPIB
OVM will continue to receive sufficient distributions to fund its
debt service and will modestly improve its leverage metrics over
time.
CPPIB OVM Member US LLC owns a 35% interest in Ohio Valley
Midstream LLC, that owns natural gas gathering and processing
assets in the southwestern Appalachian Basin.
CREDITO REAL S.A.B.: Chapter 15 Case Summary
--------------------------------------------
Chapter 15 Debtor: Credito Real, S.A.B. de C.V.,
SOFOM, E.N.R.
Av. Insurgentes Sur, No. 730
20th Floor
Col. Del Valle Norte,
Alcaldia Benito Juarez
Mexico City 03103
Mexico
Business Description: The Chapter 15 Debtor (together with its
non-debtor affiliates) was one of the
largest non-bank financial lending
institutions in Mexico. Before winding
down its operations, the Company offered
innovative financial solutions to
segments of the population that were
underserved by the traditional banking
system. The Company's customers were
located predominantly in Mexico,
elsewhere in Latin America, and in the
United States. Over the course of
nearly 30 years, the Company built a
diversified and scalable business
platform focused primarily on providing:
(i) loans paid via payroll deduction;
(ii) consumer loans;(iii) loans for new
and used car purchases; (iv) small and
medium enterprise loans; and (v)
factoring and leasing designed to fund
the working capital needs of small and
medium enterprises. These portfolios
were historically funded by the
Company's own capital, debt securities
issued in the capital markets, and bank
credit lines.
Foreign Proceeding: Corporate Liquidation Proceeding
(Case No. 691/2022) pending in the 52nd
Civil State Court of Mexico City, Mexico
Chapter 15 Petition Date: February 7, 2025
Court: United States Bankruptcy Court
District of Delaware
Case No.: 25-10208
Judge: Hon. Thomas M Horan
Foreign Representative: Robert Wagstaff
600 Brickell Avenue, Suite 2550
Miami, FL 33131
United States of America
Foreign
Representative's
Counsel: John H. Knight, Esq.
RICHARDS, LAYTON & FINGER, P.A.
920 North King Street
Wilmington DE 19801
Tel: (302) 651-7700
E-mail: knight@rlf.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 petition is available for free
on PacerMonitor at:
https://www.pacermonitor.com/view/VJI5NTY/Robert_Wagstaff_and_Credito_Real__debke-25-10208__0001.0.pdf?mcid=tGE4TAMA
CYBEREASON INC: CEO Sues Investors Over Funding Plan Rejection
--------------------------------------------------------------
Sabrina Willmer and Max Abelson of Bloomberg News reports that
Cybereason Inc. CEO Eric Gan has filed a lawsuit against two
investors -- former Treasury Secretary Steven Mnuchin and the
SoftBank Vision Fund -- accusing them of jeopardizing the company's
financial stability by rejecting multiple funding proposals of up
to $150 million.
In a complaint filed Monday, February 10, in Delaware Chancery
Court, Gan alleged that the investors used their board voting
rights to "systematically reject financing proposals" to protect
their control and financial interests. He warned that without
immediate funding, the cybersecurity software firm may be forced
into Chapter 11 bankruptcy.
About Cybereason Inc.
Cybereason Inc. operates as a cyber security company. The Company
offers incident response, cyber posture assessment, compromise
assessment, security risk assessment, threat intelligence, and
technical services. Cybereason serves customers worldwide.
CYT MAINTENANCE: Unsecureds to Get 28 Cents on Dollar in Plan
-------------------------------------------------------------
CYT Maintenance, LLC filed with the U.S. Bankruptcy Court for the
Eastern District of Pennsylvania a Plan of Reorganization for Small
Business dated January 29, 2025.
The Debtor is a Pennsylvania limited liability company with one
member, Caty Y. Toncobitz. The Debtor started business in December
2015.
The Debtor is in the business of commercial cleaning. Its business
can be divided into three categories: Weis Markets, Wawa Stores,
and "Construction." For Weis Markets and Wawa Stores, the Debtor
cleans the stores during closed hours (Weis Markets) or off-peak
hours (Wawa Stores).
In order to meet cash flow requirements, the Debtor was forced to
rely heavily on merchant cash advance ("MCA") financing. The
hoped-for rebound of the construction portion of the Debtor's
business has not occurred to the extent and at the rate anticipated
by the Debtor, and the Debtor eventually became unable to service
the cash flow requirements of the MCA financing. Shortly before
filing, one of the MCA creditors, Parkside Funding, attached
approximately $50,000 of the Debtor's funds on deposit at Wells
Fargo Bank.
This attachment tied up funds needed by the Debtor to operate and
precipitated the bankruptcy filing. The Debtor's cash flow issues
are exacerbated by the somewhat seasonal nature of the Debtor's
business. Because construction slows during the colder months, the
construction portion of the Debtor's business slows as well. The
Debtor is addressing the cash flow requirements by pursuing
additional business in all portions of its operations, but
particularly from Wawa and construction.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income $2,500.00 per month. The
final Plan payment is expected to be paid on May 1, 2029.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cash flow from operations.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 28 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 3 consists of Non-priority unsecured creditors. All
non-priority unsecured claims shall be paid a pro rata share of the
Debtor's $2,500.00 per month Plan payments, after payment of
priority claims, if any. This Class is impaired.
Class 4 consists of Equity security holders of the Debtor. The
Debtor’s sole member, Caty Toncobitz, will retain her membership
in the Debtor.
The Plan shall be funded through the Disposable Income generated by
Debtor's future operations. The Debtor will act as the disbursing
agent for Plan payments. Disbursements will start no later than May
15, 2025 and will continue for 48 months. Plan payments will equal
$2,500.00 per month.
A full-text copy of the Plan of Reorganization dated January 29,
2025 is available at https://urlcurt.com/u?l=zZpdex from
PacerMonitor.com at no charge.
Counsel to the Debtor:
George M. Lutz, Esq.
Hartman, Valeriano, Magovern & Lutz, P.C.
1025 Berkshire Boulevard, Suite 700
P.O. Box 5828
Wyomissing, PA 19610
Phone: (610) 779-0772
Email: glutz@hvmllaw.com
About CYT Maintenance
CYT Maintenance, LLC, is in the business of commercial cleaning.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa. Case No. 24-13743) on October 18,
2024, with $0 to $50,000 in assets and $100,001 to $500,000 in
liabilities.
Judge Patricia M. Mayer presides over the case.
David W. Tidd, Esq. represents the Debtor as legal counsel.
DAYBREAK OIL: Director Darren Williams Steps Down
-------------------------------------------------
Daybreak Oil and Gas, Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that Darren
Williams, a member of the Board of Directors, notified the
Company's President and Chief Executive Officer of his resignation
from his board position, effective as of January 30, 2025.
At the time of his resignation, Mr. Williams served as a member of
the Audit Committee, the Compensation Committee, and the Nominating
and Corporate Governance Committee.
Mr. Williams' resignation was not the result of any disagreement
with the Company or the Company's Board of Directors on any matter
relating to the operations, policies or practices of the Company.
About Daybreak Oil and Gas
Daybreak Oil and Gas, Inc. -- http://www.daybreakoilandgas.com/--
is an independent crude oil and natural gas company currently
engaged in the exploration, development and production of onshore
crude oil and natural gas in the United States. The Company is
headquartered in Spokane Valley, Washington with an operations
office in Friendswood, Texas.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2006, issued a "going concern" qualification in its report dated
Jan. 23, 2024, citing that the Company has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going
concern.
Daybreak Oil and Gas disclosed a net loss available to common
shareholders of $2.43 million, compared to a net loss available to
common shareholders of $398,450 for the 12 months ended Feb. 28,
2022. As of Feb. 28, 2023, Daybreak Oil and Gas had $7.72 million
in total assets, $4.51 million in total liabilities, and $3.21
million in total stockholders' equity.
ENERGYSOLUTIONS LLC: Moody's Alters Outlook on B2 CFR to Positive
-----------------------------------------------------------------
Moody's Ratings affirmed the ratings of EnergySolutions, LLC,
including the B2 corporate family rating, the B2-PD probability of
default rating and B2 rating on the company's senior secured
first-lien debt. Moody's also changed the outlook to positive from
stable.
The ratings affirmation and positive outlook reflect Moody's
expectation for continued revenue and earnings growth despite cost
pressures and a likely slowdown in nuclear plant retirements.
Moody's expect the company to benefit from a ramp up of activity in
its existing decommissioning (D&D) projects and incremental waste
volumes. These higher margin businesses will help offset the more
modest margins of other growing services (e.g. construction and
repair) over the next year. As a result, Moody's expect
debt-to-EBITDA to remain below 4x, benefiting from EBITDA growth
and recent significant debt reduction. Moody's also expect the
company to maintain good liquidity, including strong free cash
flow, supported by its sizable overlapping D&D projects and
expected new contract wins.
RATINGS RATIONALE
EnergySolutions' B2 CFR reflects its leading position in the
nuclear waste disposal industry, unique high-value assets and
technical expertise in handling and servicing hazardous waste
materials. These factors make the company well-positioned to
capture at least a portion of revenue from future nuclear plant
project opportunities and at-risk reactors. Moody's note the
company has certain D&D projects that will wind down over the next
few years. At a minimum, incremental Class A radioactive waste will
likely be directed to the company's Clive, Utah landfill, though
the timing and progress of these projects are difficult to predict.
Positively, demand for services is driven by the compliance needs
of customers to meet increasingly stringent environmental
regulations and is contractual in nature.
Offsetting these strengths is the volatility of project work and
free cash flow, and the company's modest revenue scale due to
reliance on a low-volume, specialty waste industry. With the D&D
market facing a slowdown amid growing investments in nuclear power,
the company has increased its focus on government contract work and
international materials waste management. The company is also
growing its Nuclear Services segment, including construction and
maintenance services. D&D projects are susceptible to delays or
deferrals that increase financial uncertainty. They also expose the
company to considerable performance risk, some of which is not
under its control, because of the large size and high visibility of
nuclear D&D projects. This places importance on maintaining good
liquidity. The company's current D&D backlog will support healthy
free cash flow over the next year.
Moody's expect EnergySolutions to maintain good liquidity over the
next 12-18 months. This is supported by the cash balance, Moody's
expectation for free cash flow of about $100 million and ample
availability on the company's $150 million revolving credit
facility. However, free cash flow will fluctuate with the timing of
project receipts and working capital needs The $150 million
revolving facility expires in September 2028 and Moody's do not
expect the company to rely on the revolver. There are no near term
debt maturities other than mandatory term loan amortization of
about $6.4 million annually. The revolver includes provisions for
springing maximum net leverage of 6x to be tested if the aggregate
amount of borrowings, net of letters of credit above $20 million,
exceeds 35% of the aggregate facility commitments. Moody's do not
expect the covenant to be tested. There are no term loan financial
maintenance covenants.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded with improving margins through steady
activity from D&D project overlaps and increased contract wins on
upcoming projects. Debt-to-EBITDA remaining below 4x and EBITDA to
interest approaching 3x could also support a rating upgrade.
Greater scale and stability of cash flow sufficient to offset
negative impacts of project volatility, supported by multiple D&D
projects occurring simultaneously and a sustained increase in
operational waste volumes could also drive an upgrade. The
maintenance of a conservative financial policy would also provide
support for an upgrade.
The ratings could be downgraded due to deteriorating liquidity,
including weakening free cash flow and/or diminishing revolver
availability. The ratings could also be downgraded if Moody's
expect deteriorating operating performance, including sustained
erosion of the EBITDA margin and debt-to-EBITDA above 5x. Headline
risk, including an extended disruption or a major accident related
to radioactive material handling could also warrant a downgrade.
Further, debt funded dividends or acquisitions that weaken the
metrics could also result in a rating downgrade.
The principal methodology used in these ratings was Environmental
Services and Waste Management published in August 2024.
EnergySolutions, LLC provides a broad range of services to the
nuclear power industry, including transportation, processing and
disposal of low-level radioactive waste (LLRW) as well as clean-up
and repair of nuclear sites. With two of the four privately owned
or operated disposal sites in the US for LLRW, the company handles
90% of all domestic Class A LLRW disposal volume - the US
Government is the only authorized agent for processing and
disposing of high-level radioactive waste. Revenue was
approximately $693 million for the twelve months ended September
30, 2024.
EnergySolutions, LLC is owned and controlled by private equity firm
Triartisan Capital Partners, a previous minority shareholder, since
May 2022.
EURO CONSTRUCTION: Continued Operations to Fund Plan Payments
-------------------------------------------------------------
Euro Construction, LLC d/b/a Euro Pools filed with the U.S.
Bankruptcy Court for the District of Nevada a Plan of
Reorganization for Small Business dated January 29, 2025.
The Debtor is a Nevada Limited Liability Company formed on August
29, 2018. Since that time, the Debtor has been in the business of
pool design and construction.
The Debtor filed for bankruptcy protection under Subchapter V of
the Bankruptcy Code in order to reorganize its business and
financial affairs, not to liquidate. The Debtor intends on
continuing to operate its business, complete all existing projects,
and continue with new ones.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $8,394.00 over the next
three years. The final Plan payment is expected to be paid on or
about 36 months following confirmation of the Plan.
This Plan of Reorganization proposes to pay creditors of the Debtor
from ongoing business income derived from continued operations.
Class 3 consists of Non-Priority General Unsecured Creditors. Each
holder of a Class 3 allowed general unsecured, non-priority claim
shall receive its pro rata share of the sum of the Debtor's
disposable income remaining over the term of this Plan, which sum
shall be paid in equal monthly payments, which payments shall be
made on the 14th day of each month after the effective date during
the term of the Plan, until that entire fixed sum of disposable
income is distributed in full, which shall be in full satisfaction
of all Allowed general unsecured claims. Class 3 is impaired.
The Holders of Class 4 Equity Interests shall retain their Equity
Interests, subject to the terms and conditions of this Plan.
The Plan will be funded through cash flow generated from future
operations of the Debtor's business.
A full-text copy of the Plan of Reorganization dated January 29,
2025 is available at https://urlcurt.com/u?l=zdAfKr from
PacerMonitor.com at no charge.
About Euro Construction LLC
Euro Construction LLC -- https://euroconstructionllc.com/ --
specializes in concrete, flagstone, sidewalks, walkways, driveways,
patios, decks, landscaping and home improvement jobs.
Euro Construction LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No.: 25-10440) on January 28,
2025. In its petition, the Debtor reports total assets of $445,397
and total liabilities of $1,193,214.
The Debtor is represented by:
Marjorie Guymon, Esq.
GOLDSMITH & GUYMON, PC
2055 Village Center Circle
Las Vegas, NV 89134-6251
Tel: (702) 873-9500
Email: info@goldguylaw.com
GLOBAL VALUES: Court OKs Elberton Property Sale at Auction
----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Georgia,
Athens Division, has approved Global Values GA LLC, to sell
substantially all of its real and personal property located at
located at 1187 Old Middleton Road, Elberton, Elbert County, GA
30635, free and clear of all liens, claims, encumbrances, and
interests by public auction.
The Debtor is authorized to enter agreements with the Weeks Group
LLC for the auction of the Asset and the auction listing contract
with exclusive right to sell of the property.
The Court has approved for Weeks to sell the Debtor's real property
via public auction to the highest bidder, free and clear of all
liens, claims, encumbrances, and interests, following a competitive
bidding process, with a 10% buyer’s premium being paid to Weeks
as its compensation, and with promotion costs and actual selling
costs including, without limitation, advances made by Weeks for the
Debtor's property insurance (estimated in the amount of at least
$62,768.94) payable by the Debtor from the sale proceeds. The Real
Property Sale Expenses are estimated at $70,274.94 (including the
Insurance Advances).
Weeks will also sell all of Debtor's tangible personal property
and, if the Debtor consents before the auction, the Debtor’s
intangible personal property wherever it is located to the highest
bidder(s), free and clear of all liens, claims, encumbrances, and
interests following a competitive bidding process, with a 10%
buyer's premium (payable by the winning bidders) being paid to
Weeks, a 10% selling commission (payable out of the proceeds) being
paid to Weeks, and promotion costs and actual
selling costs (including otherwise unpaid Insurance Advances) being
reimbursed to Weeks as its compensation and reimbursement. The
Personal Property Sale Expenses are estimated at $15,465.00
(exclusive of the Insurance Advances).
The Court ordered that the resulting sales from such authorized
auctions are free and clear of all liens, claims, encumbrances, and
other interests of any kind or nature.
After the completion of the auctions, the Debtor shall file with
the Court, and serve on all parties who were required to receive
notice of the Motion, a Report of Sale that contains, at a minimum,
a detailed report reflecting the purchase price for each of the
Assets, the auction proceeds received by Weeks, and the costs,
expenses, and fees that are proposed to be deducted from the
auction proceeds;
The Court has also directed the Debtor to satisfy any resulting
lien of creditors holding such liens within 30 days after
completion of the auction, including the undersigned counsel’s
reasonable actual attorneys’ fees and expenses in preparing for,
seeking authorization of, and consummating, and closing the
auctions.
About Global Values GA LLC
Global Values GA, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. M.D. Ga. Case No. 24-30387) on Aug. 5, 2024.
Judge Austin E Carter presides over the case.
The firm hires Stone & Baxter, LLP to serve as its counsel.
GLOBALSTAR INC: Effects Reverse Stock Split at 1:15 Ratio
---------------------------------------------------------
Globalstar Inc. disclosed in a Form 8-K filing with the U.S.
Securities and Exchange Commission that on February 7, 2025, it
filed with the Delaware Secretary of State a Certificate of
Amendment to the Company's certificate of incorporation to (i)
effect the Reverse Stock Split at a ratio of 1 for 15 for each
share of Common Stock effective as of February 10, 2025 at 5:30 PM
ET, (ii) effect the Authorized Share Reduction Charter Amendment to
reduce the number of shares of Common Stock authorized under the
certificate of incorporation in proportion to the Reverse Stock
Split ratio, and (iii) change all references to the "New York Stock
Exchange" in the certificate of incorporation to "Nasdaq Stock
Market LLC." Other than the Charter Amendments, no additional
changes have been made to the Company’s certificate of
incorporation.
As previously disclosed, on December 17, 2024, by written consent,
following the approval and recommendation of the Strategic Review
Committee of the Board of Directors of the Company and the Board,
James Monroe III, a director and Executive Chairman of the Board,
and certain of Mr. Monroe's affiliates, including FL Investment
Holdings LLC, Thermo Funding Company, LLC, Thermo Funding II LLC,
Globalstar Satellite, L.P., Monroe Irrevocable Educational Trust,
Thermo Properties II LLC, James Monroe III Grantor Trust, Thermo
Investments LP, and Thermo XCOM LLC, as the majority stockholders
of the Company's common stock, par value $0.0001 per share,
approved amendments to the Company's certificate of incorporation
to (i) effect a reverse stock split of the Common Stock, at a ratio
of between 1 for 10 to 1 for 25, such ratio to be determined by the
Chief Executive Officer or the Chief Financial Officer of the
Company, in conjunction with the Board; and (ii) to reduce the
2,150,000,000 shares of Common Stock currently authorized under the
Company's certificate of incorporation to a lower amount in
proportion to the Reverse Stock Split.
Additionally, as previously disclosed, on January 21, 2025, the
Company announced that it intended to voluntarily delist the shares
of its Common Stock from the NYSE American LLC and transfer its
listing to the Nasdaq Global Select Market, subject to the
completion of the Reverse Stock Split.
As a result of the Reverse Stock Split, every 15 shares of issued
and outstanding Common Stock will be automatically combined at the
Effective Time into one issued and outstanding share of Common
Stock, without any change in the par value per share. No fractional
shares will be issued as a result of the Reverse Stock Split. Any
fractional shares that would otherwise have resulted from the
Reverse Stock Split will be rounded up to the next whole number.
The number of authorized shares of Common Stock under the Company's
certificate of incorporation as amended by the Certificate of
Amendment will be reduced to 143,333,334 shares of Common Stock.
Neither the Reverse Stock Split nor the Charter Amendments will
have any impact on the number of shares of preferred stock that the
Company is authorized to issue under its certificate of
incorporation or the number of issued and outstanding shares of its
Series A Preferred Stock.
Furthermore, as a result of the Reverse Stock Split, the Company
expects the last day of trading of its Common Stock on the NYSE
American to be February 10, 2025. The Company expects its Common
Stock will begin trading on the Nasdaq on a split-adjusted basis
under new CUSIP number 378973507 on February 11, 2025, the first
trading day after the Effective Time, and will continue to trade
under the symbol "GSAT."
Following the Reverse Stock Split, the Company will make
proportionate adjustments, as necessary, to (i) its outstanding
equity awards, (ii) the number of shares authorized to be issued
under the Company’s 2006 Equity Incentive Plan, and (iii) the
number of shares of its Common Stock issuable pursuant to
outstanding warrants in proportion to the Reverse Stock Split
pursuant to the terms and conditions of the definitive agreements
governing such warrants, as applicable.
A full-text copy of the Form 8-K is available at
https://urlcurt.com/u?l=QNIs5D
About Globalstar Inc.
Headquartered in Covington, Louisiana, Globalstar Inc. provides
Mobile Satellite Services including voice and data communications
services globally via satellite. The Company offers these services
over its network of in-orbit satellites and its active ground
stations, which the Company refers to collectively as the
Globalstar System. In addition to supporting Internet of Things
data transmissions in a variety of applications, the Company
provides reliable connectivity in areas not served or underserved
by terrestrial wireless and wireline networks and in circumstances
where terrestrial networks are not operational due to natural or
man-made disasters.
Globalstar reported a net loss of $24.7 million for the year ended
December 31, 2023, compared to a net loss of $256.9 million for
the
year ended December 31, 2022. As of September 30, 2024, Globalstar
had $917.6 million in total assets, $523.5 million in total
liabilities, and $394.1 million in total stockholders' equity.
* * *
Egan-Jones Ratings Company, on September 4, 2024, maintained its
'CC' foreign currency and local currency senior unsecured ratings
on debt issued by Globalstar, Inc.
GUARDIAN ELDER: Committee Can't Pursue Causes of Action v S&T Bank
------------------------------------------------------------------
In the case captioned as OFFICIAL COMMITTEE OF UNSECURED CREDITORS
OF GUARDIAN ELDER CARE AT JOHNSTOWN, LLC, d/b/a RICHLAND
HEALTHCARE AND REHABILITATION CENTER, et al., Movants, -v- S&T
BANK, N.A., Respondent, Case No. 24-70299-JAD (Bankr. W.D. Pa.),
the Honorable Jeffrey A. Deller of the United States Bankruptcy
Court for the Western District of Pennsylvania denied the
Committee's motion for derivative standing to pursue causes of
action against S&T Bank on behalf of the estates of Guardian Elder
Care at Johnstown, LLC and its affiliates.
The causes of action -- dubbed as an effort to recover
"Bankruptcy-Created Enhancements to Value" -- seek to diminish the
secured claim of S&T Bank by attributing a portion of sale proceeds
it realized in this case by an amount equal to an amorphous "value"
allegedly generated by the bankruptcy sale process itself.
That is, S&T Bank held a blanket lien on certain assets of the
estates. As a result of sales approved by the Bankruptcy Court, S&T
Bank's liens attached to the sale proceeds.
The Committee, however, believes S&T Bank should not be permitted
to receive the price paid by the purchaser for its collateral.
Rather, the Committee contends that S&T Bank's allowed secured
claims (and recovery on account of that claim) should be limited
and equal to the price paid by the purchaser for the collateral
less any intangible and undefined "Bankruptcy-Created Enhancements
to Value."
A creditors' committee may obtain derivative standing to assert
estate claims only where:
(1) the claims are colorable and the debtor has unjustifiably
refused to pursue them;
(2) the pursuit of the claims would benefit the estate; and
(3) the creditors' committee has obtained permission from the
court to prosecute the claims.
The linchpin of the Committee's argument is that S&T Bank's secured
claim should be reduced because the bankruptcy process itself
enhanced the value of the Debtors' assets. But bankruptcy law does
not recognize such a surcharge against secured creditors, the Court
says.
According to the Court, the Committee's reliance on a hypothetical
enhancement of value fails because such enhancements, even if they
exist, are already accounted for in the value assigned to
collateral through the section 363 sale process. The Committee
essentially argues that because bankruptcy procedures allowed the
sale of assets free and clear of liens, those procedures created
some undefined additional value. However, this argument ignores the
fact that section 363 sales are designed to provide market-tested
valuations for assets that are actually sold. Courts routinely
recognize that value is determined for an asset sold by what a
willing buyer will pay in an open-market sale.
Even if the claims were colorable (which they are not), and even if
the Debtors had unjustifiably refused to bring them (which they
have not), the Court must still assess whether the litigation would
benefit the estate.
The Court finds pursuing this litigation would impose substantial
costs on the estates. S&T Bank, having already released $3.2
million of its liens to facilitate the sale process, would be
forced to defend against a lawsuit supported by no precedent in
bankruptcy law. Further, protracted litigation risks adding further
administrative expenses (and reducing the pool of funds available
to pay unsecured creditors) thereby jeopardizing the very
recoveries the Committee purports to advance, the Court adds.
While the Court finds the Committee's motion for relief to be
interesting, the theory propounded by the Committee is unsupported
by law, has never been recognized by any court, and is untenable
under both the Bankruptcy Code and established precedent.
The Court concludes that the Committee has failed to establish the
prerequisites to the privilege of derivative standing.
A copy of the Court's decision dated Feb. 5, 2025, is available at
https://urlcurt.com/u?l=rVQx5T from PacerMonitor.com.
About Guardian Elder Care at Johnstown
Guardian Elder Care at Johnstown, LLC (doing business as Richland
Healthcare and Rehabilitation Center), its affiliates, and their
non-debtor affiliates are a private, family-owned organization that
has provided inpatient and outpatient services to predominately
small and/or rural communities through a network of skilled nursing
facilities and personal care homes since 1995. Guardian Healthcare
maintains 19 skilled nursing facilities, with one facility in West
Virginia and the remaining facilities located in Pennsylvania.
Through its facilities, Guardian Healthcare maintains more than
1,700 skilled nursing, personal care, and independent living beds,
providing long-term care and rehabilitation services.
Guardian Elder Care at Johnstown and its affiliates sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. Pa. Lead Case No. 24-70299) on July 29, 2024. In the petitions
signed by Allen Wilen, chief restructuring officer, Guardian Elder
Care at Johnstown disclosed up to $10 million in assets and up to
$50 million in liabilities.
Judge Jeffery A. Deller oversees the cases.
The Debtors tapped Saul Ewing, LLP as legal counsel, Eisner
Advisory Group, LLC as financial advisor, and Omni Agent Solutions,
Inc. as claims and noticing agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Margaret Barajas is the patient care ombudsman appointed in the
Debtors' Chapter 11 cases.
H6 COMPANY: Court OKs Tractor & Trailer Sale
--------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Wilmington Division, has permitted H6 Company to sell
personal property by private sale, free and clear of liens and
other interests.
The Debtor is authorized to sell 2018 McCormick 35HP Tractor and
2002 equipment trailer to Scott Harden Builders, Inc., or its
assigns, for $9,000.
The Court ordered the purchaser of the Tractor to pay the
outstanding fees (storage and towing costs) the Brunswick County
Sheriff’s Office and shall have the amount credited towards the
purchase price paid to
the Estate.
The Debtor is also allowed to sell the 1997 John Deere 120C
excavator to Chris Lee, or his assigns,
for $4,000.
The Debtor's personal property will be sold free and clear of all
liens of the ODK Capital, LLC the UCC
Financing Statement filed with the North Carolina Secretary of
State’s Office, and all remaining interests, liens, encumbrances,
rights and claims asserted against the Property, which relate to or
arise as a result of a sale of the Property, or which may be
asserted against the buyer of the Property by the North Carolina
Department of Revenue, the Internal Revenue Service.
The court also directed the purchaser of the Tractor to take
possession of the Tractor upon payment of the purchase price and
payment of the outstanding costs owed to the Brunswick County
Sheriff’s Office.
About H6 Company
H6 Company sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03976) on November 13,
2024, with $100,001 to $500,000 in assets and $1 million to $10
million in liabilities.
Judge David M. Warren presides over the case.
Richard Preston Cook, Esq., at Richard P. Cook, PLLC represents the
Debtor as legal counsel.
HALO BUYER: S&P Withdraws 'CCC+' Issuer Credit Rating
-----------------------------------------------------
S&P Global Ratings withdrew its 'CCC+' issuer credit rating on Halo
Buyer Inc. following the company's private refinancing, through
which it repaid its outstanding debt facilities.
At the same time, S&P discontinued its 'CCC+' issue-level rating
and '3' recovery rating on Halo's first-lien debt and its 'CCC-'
issue-level rating and '6' recovery rating on its second-lien debt
because it repaid all of its rated debt facilities.
At the time of withdrawal, S&P's ratings on Halo Buyer were on
CreditWatch, where we placed them with negative implications on
July 31, 2024, due to the approaching maturity of its debt
facility.
HAMILTON PROJECTS: S&P Affirms 'BB-' Rating on Secured Term Loan B
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' rating on U.S. power project
Hamilton Projects Acquiror LLC's (Hamilton or the project) $1
billion senior secured term loan B (TLB) with a seven-year term
that matures in 2031. The '2' recovery rating on the debt is
unchanged, and indicates its expectation for very high (70%-90%;
rounded estimate: 85%) recovery in a default scenario.
The stable outlook reflects S&P's expectation that Hamilton will
sustain a minimum S&P Global Ratings-adjusted debt service coverage
ratio (DSCR) of at least 1.60x in all years, with a median DSCR of
1.79x.
Hamilton is a two-asset, combined-cycle gas turbine power portfolio
with about 1,705 megawatts (MW) of nameplate capacity in
northeastern Pennsylvania. It comprises the Liberty power project
in Bradford County with a rated winter capacity of 848 MW, and the
Patriot power project in Lycoming County with a rated winter
capacity of 857 MW. The units entered commercial operation in
mid-2016 and sell power into Pennsylvania-New-Jersey-Maryland
Interconnection's (PJM) Penelec zone and Pennsylvania Power and
Light zone, respectively. Liberty and Patriot are in the eastern
portion of the Marcellus shale gas play with access to reliable
natural gas supply. Tennessee Gas Pipeline Zone 4 Leg 300 and
Transco Leidy are the two closest gas hubs for Liberty and Patriot,
respectively.
The assets sell forward capacity to the PJM power market, which is
the largest and most liquid in the U.S. Capacity payments provide
cash flow visibility for the next two years.
The assets are in the Marcellus shale gas region that provides
direct access to the lowest-cost and most abundant natural gas
supply in the Northeast; therefore, S&P expects modern gas-fired
power plants such as Liberty and Patriot will remain highly
competitive.
The units are exposed to commodity price risk since they sell the
power produced on a merchant basis.
S&P Global Ratings' capacity price outlook for the PJM Mid-Atlantic
Area Council (MAAC) region is weaker for future auctions. Capacity
cash flows represent about 25% of Hamilton's gross margins under
our assumed prices.
Consistent with other projects financed with TLB structures,
Hamilton is exposed to refinancing risk.
Hamilton's past operating and financial performance was in line
with our expectations. For the first nine months of 2024, the
project realized spark spread of approximately $23 per megawatt
hour (/MWh). With a capacity factor of approximately 89%, Hamilton
generated gross energy margin of $211 million. During this period,
the project's EBITDA totaled $202 million. The project's DSCR for
compliance purposes based on the trailing 12 months as of Sept. 30,
2024, was 3.76x, in line with S&P's expectations.
Although the project generated sufficient cash flow available for
debt service (CFADS), it was only required to make mandatory
repayments for the remainder of 2024 following the issuance of the
$1 billion TLB in mid-2024. As a result, the TLB balance
outstanding at year-end 2024 was $995 million, consistent with our
base-case analysis.
Forecast DSCRs are expected to improve due to recent capacity
market momentum and reduced credit spread, partially offset by
lower sweep. S&P said, "We expect improved DSCRs will be spurred by
higher capacity price assumptions and a lower credit spread on the
TLB, although partially offset by reduced excess cash sweep under
the new structure. The PJM's recent capacity auction for 2025-2026
cleared at $269.92 per megawatt day (/MW-day), a significant
increase from the previous auction's clearing price of
$49.49/MW-day. This increase was driven by coal retirements, rising
electricity demand, and the implementation of new market rules. We
believe this improvement has longer-term implications and have
accordingly revised our long-term capacity price assumption for the
PJM MAAC region to $175/MW-day."
Furthermore, Hamilton completed a credit agreement amendment in
December 2024. As part of this amendment, the TLB was repriced with
a reduced credit spread to 3.00% from 3.75%. In addition, the
project's sweep structure was modified through the TLB term,
replacing the previous leverage based cash sweep provision with a
flat 50% sweep structure, which had a modest negative impact on
DSCRs. Overall, improved capacity price assumptions, a reduced
credit spread, and the modified sweep structure had a net positive
impact on Hamilton's DSCRs, increasing the minimum DSCR to 1.60x
from the previous 1.36x. S&P views this DSCR level as supportive of
the current rating.
S&P said, "The stable outlook reflects our expectation that
Hamilton will sustain a minimum S&P Global Ratings-adjusted DSCR of
at least 1.60x in all years. We expect Liberty and Patriot will
maintain high availability and dispatch at capacity factors of
85%-90% in the near term. Under current market conditions in PJM,
we project realized spark spreads of above $20/MWh over the next 12
months."
S&P could lower the rating if:
-- Hamilton cannot sustain an S&P Global Ratings-adjusted DSCR of
1.35x. This could stem from additional indebtedness, weaker
realized spark spreads or lower PJM capacity prices for delivery
year 2025-2026 and beyond, unplanned outages that require a full
plant shutdown for an extended period, or economic factors in which
the power plants are regularly kept at minimum load; or
-- Debt outstanding at TLB maturity in second-quarter 2031 is
substantially higher than our expectation of $475 million.
S&P said, "We would consider an upgrade if we believe Hamilton
could maintain an S&P Global Ratings-adjusted DSCR of 1.80x on a
sustained basis, including during the refinancing period. This
could stem from secular developments in the PJM wholesale market
that improve power and capacity prices for an extended period,
steady operational performance, and continued access to relatively
inexpensive natural gas feedstock."
HAMMER FIBER: Incurs $1.23 Million Net Loss in FY Ended July 31
---------------------------------------------------------------
Hammer Fiber Optics Holdings Corp. filed with the Securities and
Exchange Commission its Annual Report on Form 10-K disclosing a net
loss of $1,233,013 on $3,279,946 of revenue for the year ended July
31, 2024, compared to a net loss of $2,577,819 on $3,256,611 of
revenue for the year ended July 31, 2023.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2022, issued a "going concern"
qualification in its report dated February 4, 2025, citing that the
Company has consistently sustained losses since its inception.
These factors, among others, raise substantial doubt about the
Company's ability to continue as a going concern.
The Company's continuation as a going concern is dependent upon,
among other things, its ability to increase revenues, adequately
control operating expenses and receive debt and/or equity capital
from third parties. No assurance can be given that the Company will
be successful in these efforts. The Company intends to continue to
address this condition by seeking to raise additional capital
through the issuance of debt and/or the sale of equity until such
time that ongoing revenues can sustain the business, at which time
capitalization may be considered through other means.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/25nu3h2m
About Hammer Fiber Optics
Hammer Fiber Optics Holdings Corp. is now an alternative
telecommunications carrier that is poised to position itself as a
premier provider of diversified dark fiber networking solutions as
well as high-capacity broadband wireless access networks in the
United States and abroad.
As of July 31, 2024, the Company had $3,036,829 in total assets,
$3,998,146 in total liabilities, and a total stockholders' deficit
of $961,317.
HANSEN KIDS: Case Summary & 11 Unsecured Creditors
--------------------------------------------------
Debtor: Hansen Kids, LLC
3840 Sweetbrier Ln
Charlevoix, MI 49720
Business Description: Hansen Kids, LLC, based in Charlevoix,
Michigan, specializes in eco-friendly baby
products. Their flagship product is the
Andy Pandy Premium Bamboo Disposable Diaper,
which is marketed as a biodegradable and
chemical-free alternative to traditional
diapers. In addition to diapers, Hansen
Kids offers other baby care items,
including: training pants, bath & baby
products, and toys. Hansen Kids has also
expanded its product line to include the
Andy Pandy Baltic Amber Teething Necklace,
which is handcrafted in Lithuania and
marketed as a natural remedy for teething
discomfort.
Chapter 11 Petition Date: February 11, 2025
Court: United States Bankruptcy Court
Western District of Michigan
Case No.: 25-00345
Judge: Hon. James W Boyd
Debtor's Counsel: Jeffrey C Alandt, Esq.
LAW OFFICE OF JEFFREY C ALANDT
121 E Front Street Ste 302
Traverse City, MI 49684
Tel: (231) 941-7766
Email: jalandt@sbcglobal.net
Total Assets: $302,191
Total Liabilities: $1,149,510
The petition was signed by Jessica Hansen as member.
A full-text copy of the petition, which includes a list of the
Debtor's 11 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/33SBXZQ/Hansen_Kids_LLC__miwbke-25-00345__0001.0.pdf?mcid=tGE4TAMA
HAYDALE CERAMIC: Seeks Chapter 11 Bankruptcy Protection in Georgia
------------------------------------------------------------------
On February 7, 2025, Haydale Ceramic Technologies 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 $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Haydale Ceramic Technologies LLC
Haydale Ceramic Technologies LLC is a manufacturer of Silicon
Carbide (SiC) ceramic materials, boasting the largest installed
production capacity across the Americas, Europe, and the APAC
regions. Manufactured in Greer, South Carolina, the Company's
cutting tools are crafted using the highest quality SiC materials,
including particulates, fibers, and microfibers.
Haydale Ceramic Technologies LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No.: 25-20159) on
February 7, 2025. In its petition, the Debtor reports estimated
assets between $1 million and $10 million and estimated liabilities
between $10 million and $50 million.
Honorable Bankruptcy Judge James R. Sacca handles the case.
The Debtor is represented by:
William Rountree, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta GA 30329
Tel: 404-584-1238
E-mail: wrountree@rlkglaw.com
HEXCEL CORP: S&P Rates $300MM Senior Unsecured Debt Offering 'BB+'
------------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '3'
recovery rating to Hexcel Corp.'s $300 million senior unsecured
debt offering. The '3' recovery rating indicates our expectation
for meaningful recovery (50%-70%; rounded estimate: 50%) in the
event of a payment default. S&P expects the company will use the
proceeds from this offering to repay its $300 million of senior
notes maturing August 2025. The leverage-neutral transaction will
not materially impact Hexcel's credit metrics, which remain well
within our expectations for the rating.
S&P said, "The positive outlook reflects our expectation the
company will continue to improve its credit metrics as aircraft
build rates rise further over the next year, most notably for the
widebody planes featuring significant Hexcel content. We expect the
company's funds from operations to debt will be between 40% and 45%
in 2025."
INVERSIONES ALFA: Seeks Chapter 11 Bankruptcy Protection in Florida
-------------------------------------------------------------------
On February 6, 2025, Inversiones Alfa V, C.A. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Southern District
of Florida.
According to court filing, the Debtor reports $8,903,465 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Inversiones Alfa V, C.A.
Inversiones Alfa V, C.A. owns a condominium unit, specifically Unit
2303, located in the Turnberry Ocean Colony South Tower in Sunny
Isles, Florida. The Unit is valued at $4.1 million based on a
purchase offer made in February 2024.
Inversiones Alfa V, C.A. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. ) on February 6, 2025. In its petition,
the Debtor reports total assets of $7,763,329 and total liabilities
of $8,903,465.
Honorable Bankruptcy Judge Laurel M. Isicoff handles the case.
The Debtor is represented by:
Christian Somodevilla, Esq.
LSS LAW
2 S Biscayne Blvd., #2200
Miami, FL 33131
Tel: (305) 894-6163
E-mail: cs@lss.law
J&K SAI HOSPITALITY: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of J&K SAI Hospitality, LLC, according to court dockets.
About J&K SAI Hospitality
J&K SAI Hospitality, LLC, a company in Pensacola, Fla., filed
Chapter 11 petition (Bankr. N.D. Fla. Case No. 24-31020) on
December 5, 2024, listing between $10 million and $50 million in
both assets and liabilities. Ramesh Patel, as registered agent and
MGRM, signed the petition.
Judge Karen K. Specie oversees the case.
The Debtor tapped Wynn & Associates, PLLC as bankruptcy counsel and
McDonald & Barnhill, PA as litigation counsel.
JAGUAR HEALTH: Extends $6.2 Million Note Maturity to July 20
------------------------------------------------------------
Jaguar Health, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company and Napo
Pharmaceuticals, Inc., the Company's wholly-owned subsidiary,
entered into an amendment with Streeterville Capital, LLC to the
secured promissory note in the original principal amount of
$6,220,812.50 issued by Borrower to Streeterville on January 19,
2021 pursuant to that certain Note Purchase Agreement among the
same parties dated as of the even date.
Pursuant to Note Amendment, the maturity date of the Note is
extended to July 20, 2025.
About Jaguar Health
Jaguar Health, Inc. -- http://www.jaguar.health-- is a
commercial-stage pharmaceuticals company focused on developing
novel, plant-based, sustainably derived prescription medicines for
people and animals with gastrointestinal ("GI") distress, including
chronic, debilitating diarrhea. Jaguar Health's wholly owned
subsidiary, Napo Pharmaceuticals, Inc., focuses on developing and
commercializing proprietary plant-based human pharmaceuticals from
plants harvested responsibly from rainforest areas. The Company's
crofelemer drug product candidate is the subject of the OnTarget
study, a pivotal Phase 3 clinical trial for prophylaxis of diarrhea
in adult cancer patients receiving targeted therapy.
Larkspur, California-based RBSM, LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company has an accumulated deficit,
recurring losses, and expects continuing future losses. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
As of September 30, 2024, Jaguar Health had $58.5 million in total
assets, $42.9 million in total liabilities, $2.5 million in
redeemable preferred stock, and $13.1 million in total
stockholders' equity.
JAGUAR HEALTH: Issues 1.29M Shares to Reduce Royalty by $1.09M
--------------------------------------------------------------
Jaguar Health, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company entered
into a privately negotiated exchange agreement with a holder of
royalty interest in the Company.
Pursuant to the Exchange Agreement, the Company issued 1,290,000
shares of common stock to such holder in exchange for a $1,094,952
reduction in the outstanding balance of the royalty interest held
by such holder.
About Jaguar Health
Jaguar Health, Inc. -- http://www.jaguar.health-- is a
commercial-stage pharmaceuticals company focused on developing
novel, plant-based, sustainably derived prescription medicines for
people and animals with gastrointestinal ("GI") distress, including
chronic, debilitating diarrhea. Jaguar Health's wholly owned
subsidiary, Napo Pharmaceuticals, Inc., focuses on developing and
commercializing proprietary plant-based human pharmaceuticals from
plants harvested responsibly from rainforest areas. The Company's
crofelemer drug product candidate is the subject of the OnTarget
study, a pivotal Phase 3 clinical trial for prophylaxis of diarrhea
in adult cancer patients receiving targeted therapy.
Larkspur, California-based RBSM, LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company has an accumulated deficit,
recurring losses, and expects continuing future losses. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
As of September 30, 2024, Jaguar Health had $58.5 million in total
assets, $42.9 million in total liabilities, $2.5 million in
redeemable preferred stock, and $13.1 million in total
stockholders' equity.
JGA DEVELOPMENT: Seeks to Sell Plainfield Property in Private Sale
------------------------------------------------------------------
JGA Development LLC seeks permission from the U.S. Bankruptcy Court
for the District of New Jersey, at a hearing on to sell its
property in a private sale.
The Debtor's property is located at 764 Belvidere Avenue,
Plainfield City, New Jersey.
Any objections to the relief requested in the Motion must be filed
at least 7 days before the scheduled hearing date on March 11,
2025, must be in writing, and should specify with particularity the
basis of the objection.
Objections must be filed with the Clerk of the United States
Bankruptcy Court at 401 Market Street, Canmden, NJ 08608; and
simultaneously be served on Debtor’s Counsel, Daniel Reinganum,
Esq., Law
Offices of Daniel Reinganum, 615 White Horse Pike, Haddon Heights,
NJ 08035.
About JGA Development, LLC
JGA Development, LLC, a real estate investment and development
company in Vineland, N.J., filed Chapter 11 petition (Bankr. D.N.J.
Case No. 24-16864) on July 9, 2024. At the time of the filing, the
Debtor disclosed $10 million to $50 million in both assets and
liabilities.
Judge Andrew B. Altenburg, Jr. oversees the case.
The Debtor tapped the Law Offices of Daniel Reinganum as bankruptcy
counsel and Michele Zelina, Esq., as special counsel.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtor's Chapter
11 case.
KINGSMAN REAL ESTATE: Voluntary Chapter 11 Case Summary
-------------------------------------------------------
Debtor: Kingsman Real Estate Corporation
1513 Mirasol Street
Los Angeles, CA 90023
Business Description: Kingsman Real Estate Corporation,
established in 2017, is a real estate firm
specializing in residential and commercial
property transactions, offering services to
clients looking to buy, sell, or lease
properties in the competitive Los Angeles
market.
Chapter 11 Petition Date: February 11, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-11042
Debtor's Counsel: Frank J. Alvarado, Esq.
ALVARADO LAW
9150 Las Tunas Drive
Temple City, CA 91780
Tel: (888) 408-9528
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ron Manela as CEO.
The Debtor did not 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/SMSTTFQ/Kingsman_Real_Estate_Corporation__cacbke-25-11042__0001.0.pdf?mcid=tGE4TAMA
LIGHT & WONDER: S&P Rates Secured Revolving Credit Facility 'BB'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating and '2'
recovery rating to Light & Wonder Inc.'s $1 billion senior secured
revolving credit facility due 2030. The '2' recovery rating
indicates its expectations for substantial (70%-90%; rounded
estimate: 85%) recovery for lenders in the event of a payment
default. Subsidiary Light & Wonder International Inc. will be the
borrower under the new revolver. The proposed transaction will
enhance liquidity by increasing revolver availability by $250
million and improve the company's maturity profile by extending its
revolver maturity by three years.
S&P said, "Notwithstanding the higher level of secured debt assumed
to be outstanding at default given the $250 million revolver
increase and our assumption that the revolver is 85% drawn, the
recovery ratings on Light & Wonder's secured and unsecured debt are
unchanged. This is because we now assume a modestly higher level of
EBITDA at emergence and enterprise valuation than in our previous
analysis. Our revised EBITDA at emergence reflects a reassessment
in our valuation to incorporate acquired EBITDA following the
company's acquisition of its remaining minority equity interest in
SciPlay and its addition of SciPlay as a guarantor of its debt. In
addition, the reassessment incorporates an increase in the
company's installed base, which has driven a higher level of
EBITDA."
Issue Ratings--Recovery Analysis
Key analytical factors
-- S&P assigned its 'BB' issue-level rating and '2' recovery
rating to Light & Wonder's $1 billion senior secured revolver due
2030. The '2' recovery rating indicates its expectation for
substantial (70%-90%; rounded estimate: 85%) recovery for lenders
in a payment default.
-- S&P affirmed its 'BB' issue-level rating on Light & Wonder's
$2.2 billion term loan. The recovery rating remains '2' and it
revised the rounded estimate to 85%, up from 75%. This is a result
of its reassessment of the company's EBITDA at emergence and
enterprise valuation.
-- S&P affirmed its 'B+' issue-level rating on Light & Wonder's
senior unsecured notes. The '5' recovery rating is unchanged and
indicates its expectation for modest (10%-30%; rounded estimate:
10%) recovery for noteholders in a payment default.
Simulated default assumptions
-- In S&P's simulated default, it contemplates a default occurring
in 2029 due to a prolonged economic downturn that reduces consumer
spending on gaming, decreases the company's installed base, extends
the gaming equipment replacement cycle, and significantly cuts
spending on new equipment.
-- S&P said, "We assume Light & Wonder will reorganize under a
distressed scenario, and we use a 6x multiple to value the company,
which is modestly lower than the average multiple we use for the
leisure industry. The lower multiple reflects the highly volatile
nature of the company's product sales (due to its reliance on new
casino openings and the strength or weakness of the replacement
cycle), the sensitivity of consumer discretionary spending in
casinos to economic conditions, and the revenue mix shift to
digital gaming, which we view as more volatile and highly
competitive."
-- S&P assumes the $1 billion revolving credit facility is 85%
drawn at the time of default.
-- S&P said, "In our analysis, we assume Light & Wonder's domestic
operating subsidiaries, which are guarantors of the credit
facility, generate about 67% of its total revenue and that foreign
subsidiaries generate about 33%. As a result, we attributed 67%
($1.9 billion) of the net available recovery value to domestic
operating entities and 33% ($0.9 billion) to foreign operating
entities."
-- S&P said, "Under our analysis, the senior secured debtholders
have a priority claim against substantially all the available
domestic value ($1.9 billion) and a priority claim against 65%
($0.6 billion) of the foreign value ($0.9 billion), which
represents the value we have attributed to the foreign stock
pledge."
-- Total value attributable to senior secured claims is $2.5
billion. S&P said, "We estimated total first-lien senior secured
claims of $3 billion at default, leaving a first-lien unsecured
deficiency claim of about $0.5 billion. The first-lien senior
credit facilities' unsecured deficiency claim and the senior
unsecured notes' claim (which we estimate at about $1.8 billion at
default) would constitute pari passu unsecured claims against the
remaining $0.3 billion of recovery value, which represents the
value we attribute to the 35% unpledged foreign equity."
Simplified waterfall
-- Emergence EBITDA: $497 million
-- EBITDA multiple: 6.0x
-- Gross recovery value: $3.0 billion
-- Net recovery value (after 5% administrative expenses): $2.8
billion
-- Valuation split (obligor/nonobligor): 67%/33%
-- Estimated secured debt claims at default: $3.0 billion
-- Total value available to secured debt, including its pro rata
share of value available to unsecured claims: $2.6 billion
--Recovery expectations: 70%-90% (rounded estimate: 85%)
-- Estimated senior unsecured claims and pari passu secured
deficiency claims: $2.3 billion
-- Value available to unsecured claims: $0.3 billion
--Recovery expectations: 10%-30% (rounded estimate: 10%)
Note: All debt amounts include six months of prepetition interest.
LONG RIDE: Fitch Assigns 'B+(EXP)' Issuer Credit Rating
-------------------------------------------------------
Fitch Ratings has assigned Long Ridge Energy LLC a 'B+(EXP)' Issuer
Default Rating (IDR). Fitch has also rated the project's senior
secured term loan and senior secured notes 'B+(EXP)' with a
Recovery Rating of 'RR2', subject to receipt of final documents and
pricing. The Rating Outlook is Stable.
RATING RATIONALE
Long Ridge Energy LLC's (HoldCo, borrower) term loan and senior
notes ratings of 'B+(EXP)' reflect the project's financial profile
and a debt structure with partially amortizing term loan and
non-amortizing senior notes, and exposure to significant refinance
risk at maturity of both debt instruments in 2032.
HoldCo will service debt primarily from distributions from its
subsidiary, Long Ridge Energy Generation LLC (LREG), which owns a
relatively new gas-fired power plant. During the debt term, LREG
will earn about half of its revenue selling output into PJM energy
and capacity markets and the rest from energy hedges with
creditworthy counterparties.
LREG also plans to mitigate volume risk on energy revenue by using
highly efficient generation technology and structural arrangements
with HoldCo's gas production companies that allow LREG to bid more
aggressively than peers into the PJM markets due to effectively
lower gas feedstock costs than peers. However, this strategy relies
on the strength of the gas reserves and successful development of
one major field. Post-maturity, LREG is fully exposed to PJM market
price and volume risk.
Under Fitch's rating case assumptions, the minimum consolidated
project life coverage ratio (PLCR) is 1.21x in 2026, and 1.34x at
maturity in 2032. This coverage profile is adequate for the
'B+(EXP)' rating.
HoldCo's IDR is aligned with the debt instruments' rating due to
their senior position and absence of other senior-ranking
liabilities. The IDR reflects a significant risk of default,
especially if there are adverse changes in the PJM capacity and
power market conditions over time. Despite this, Fitch's analysis
shows that a margin of safety exists and financial commitments are
being met.
The 'RR2' Recovery Rating for the debt facilities indicates a
recovery range of 71% to 90%.
KEY RATING DRIVERS
Operation Risk - Midrange
New Power Facility with Proven Technology: LREG employs General
Electric's (GE) proven combined-cycle combustion turbine (CCCT)
technology. The project maintains a substantial inventory of
critical spare parts mitigating unforeseen outages. The independent
engineer (IE) concluded that the facility is well-maintained and
that the operations and maintenance (O&M) program aligns with
industry standards and is comparable to peers. NAES Corporation, a
highly experienced operator, provides comprehensive O&M services
under a cost-plus O&M agreement that is short-term but with
automatic renewal features. GE Vernova Inc. (BBB/Stable), a highly
experienced vendor, performs major maintenance under a long-term
contractual service agreement (CSA) with mostly fixed pricing. The
project is not required to maintain any type of O&M reserve, a
weaker feature.
Supply Risk - Weaker
Dependency on Gas Production from Probable Reserves: The borrower
group benefits from at-cost gas produced by its gas subsidiaries,
Ohio GasCo LLC (Ohio GasCo) and Long Ridge West Virginia LLC
(LRWV). This enables LREG to bid its energy in the PJM more
aggressively than peers and achieve higher capacity factors and
better margins.
LREG obtains natural gas from a short lateral to the extensive
Equitrans gas collection pipeline system, which mitigates gas
supply risk given robust regional gas production for the
foreseeable future. HoldCo subsidiaries, Ohio GasCo and LRWV, will
produce and sell gas into the same pipeline system. LREG will buy
gas at the same market price that Ohio GasCo and LRWV sell it for.
On a net basis, HoldCo benefits from the gas supply at production
cost. The borrower group is exposed to the risk of changes in
economic viability of gas production from these fields over time.
Fitch assumes that the gas production companies will be able
capture all proved reserves but only 45% of probable ones. Based on
the current operating profile of the plant, proved reserves cover
seven years of gas demand, while the remaining probable reserves
cover an additional 30 years. The gas companies are operated by
Diversified Energy Inc., an experienced gas and oil production
company.
Revenue Risk - Composite - Weaker
High Reliance on Merchant Revenues: Through 2031, LREG will earn
about one-half of forecast revenue from PJM market-based capacity
and energy payments and the other half from energy hedges with
creditworthy counterparties. Afterwards, LREG will earn all revenue
from PJM markets, introducing full exposure to volatile price and
volume risk. Volume risk is mitigated by the use of highly
efficient plant and an effective lower cost of gas feedstock than
peers. Ohio GasCo and LRWV contribute additional revenues from gas
sales to third parties.
Debt Structure - 1 - Weaker
Large Exposure to Refinance Risk: HoldCo's debt structure includes
a seven-year term loan and coterminous pari passu senior notes. The
term loan is variable-rate senior secured debt, with mandatory
annual amortization equal to 1% of the initial balance and
compulsory prepayments equal to 100% of free cash flow after debt
service. 75% of the exposure to SOFR is hedged at a fixed rate of
8.50% for the debt tenor. The senior notes carry a fixed coupon of
7.75%, are non-amortizing and assume 100% cash sweep once the term
loan is repaid.
Under Fitch's rating case, about 60% of the initial term loan and
100% of the original balance of the notes remain outstanding at
debt maturity, introducing significant refinance risk coinciding
with full exposure to merchant power markets for revenue.
Additionally, HoldCo's financing includes standard lender
protections and covenants, a backward-looking financial covenant
DSCR test of 1.10x and separate cash-funded six-month debt service
reserves for both debt instruments.
LRWV has a third-party loan of a $115 million that it is using to
develop the field. Repayment is interest only at a rate of 6.75%
until the loan matures in 2029 with LRWV's option to extend
maturity by another two years at a higher interest rate of 7.25%.
In its analysis, Fitch assesses consolidated metrics for the
transaction that assumes debt service on all debt facilities.
Financial Profile
For LREG, Fitch's rating case includes a delay in the planned
uprating, stresses to the sponsors' assumptions of merchant prices,
capacity factor, heat rate, and increases in O&M and uncontracted
major maintenance costs. For the gas companies, Fitch's rating case
assumes proved reserves at Ohio GasCo, the development of near-term
probable reserves at LRWV, and an increase in associated O&M and
capital costs. Additionally, in the rating case Fitch applies its
internal SOFR forecast and stressed refinance rates for the HoldCo
and LRWV debt instruments. The rating case demonstrates a minimum
PLCR of 1.21x in 2026, and a PLCR of 1.34x at the assumed
refinancing in 2032.
PEER GROUP
EFS Cogen Holdings I LLC (BB-/Stable) is a predominantly merchant
natural gas-fired combined cycle cogeneration plant located in New
Jersey. It sells capacity and energy primarily into NYISO Zone J.
Financial performance is further supported by steam and power
contracts with creditworthy offtakers, short-term power and
commodity hedges, and a favorable and sustainable competitive
position due to lower fuel costs compared to its peers.
The rating reflects a Term Loan B debt structure with limited
amortization, resulting in approximately 50% of the principal
remaining as a bullet payment at maturity. Under Fitch's rating
case assumptions during the debt tenor, the minimum PLCR for Term
Loan B is 1.36x at maturity in 2030, reflective of a higher rating
for EFS Cogen Holdings I LLC compared to the assigned rating for
the borrower.
Fitch has privately rated other power projects that are heavily
exposed to merchant price risk. Conventional power projects with
partial market-based exposure or merchant tails generally fall into
the 'BB' rating category. Investment-grade merchant projects often
include structural features to partially mitigate revenue risk and
typically face less market-based exposure overall. Lower-rated
merchant projects in the 'B' category have higher exposure to
merchant markets, often participate in less transparent or more
speculative commodity markets and sometimes combine this exposure
with unproven technology or substantial refinance risk.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Deterioration in the operational and financial profile leading to
rating case PLCRs below about 1.20x during the loan term and 1.25x
at refinancing in 2032.
- Inability to achieve merchant revenues as forecast by the
sponsors' market consultant leading to additional stresses in
Fitch's rating case.
- Lower than expected gas production leading to higher market
procurement of feedstock gas that materially affects cash flow.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Operational performance and financial profile leading to rating
case PLCRs above about 1.30x during the loan term and 1.40x at
refinancing in 2032.
TRANSACTION SUMMARY
The proceeds of the term loan and the senior notes issuance will be
used by the borrower on the closing date to refinance LREG's
existing senior secured debt and to fund the debt service reserves
and an account for capex at the gas production companies. Proceeds
will also be used to settle certain amounts due under existing
commodity hedge arrangements and to cover fees, commissions, and
expenses related to the transaction.
SECURITY
Collateral is shared between the new term loan and senior notes. It
includes LREG and Ohio GasCo assets along with the equity interest
in LRWV.
Date of Relevant Committee
21 January 2025
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
----------- ------ --------
Long Ridge Energy LLC LT IDR B+(EXP)Expected Rating
Long Ridge Energy
LLC/senior secured/1 LT LT B+(EXP)Expected Rating RR2
LUKITAS INC: Gets Final OK to Use Cash Collateral Until July 18
---------------------------------------------------------------
Lukitas, Inc. received final approval from the U.S. Bankruptcy
Court for the Southern District of Texas to use cash collateral
through July 18 or until confirmation of its Chapter 11 plan,
whichever comes first.
The final order authorized the company to use cash collateral in
accordance with its budget, with a 15% variance allowed.
The budget shows total projected operating expenses of $121,840 for
the period from Jan. 17 to April 30.
Secured creditors, including Live Oak Bank, Ann Harris Bennett,
Cypress-Fairbanks ISD, and the U.S. Small Business Administration
were granted protection in the form of replacement liens on all
property of the company, with the same priority as their
pre-bankruptcy liens.
Lukitas' authority to use the cash collateral terminates if the
company breaches any term or condition of the final order; if the
Chapter 11 case is dismissed or converted to one under Chapter 7;
or if the company is removed from possession and a Chapter 11
trustee is appointed to take over its business or operations.
Live Oak Bank can be reached through its counsel:
Kristin A. Zilberstein, Esq.
ZBS Law, LLP
30 Corporate Park, Suite 450
Irvine, CA 92606
Telephone: 714-848-7920
Fax: 714-908-7807
Email: bankruptcy@zbslaw.com
Cypress-Fairbanks can be reached through its counsel:
Jeannie Lee Andresen, Esq.
Linebarger Goggan Blair & Sampson, LLP
P.O. Box 3064
Houston, TX 77253-3064
Telephone: (713) 844-3400
Facsimile: (713) 844-3503
Email: houston_bankruptcy@lgbs.com
About Lukitas Inc.
Lukitas, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Case No. 25-30321) on January
20, 2025, with up to $500,000 in assets and up to $1 million in
liabilities. James Burciaga, owner and president of Lukitas, signed
the petition.
Judge Eduardo V. Rodriguez oversees the case.
The Debtor is represented by Vicky M. Fealy, Esq., at Fealy Law
Firm, PC.
MARINUS PHARMACEUTICALS: Morgan Stanley Reports 6% Stake
--------------------------------------------------------
Morgan Stanley disclosed in a Schedule 13G filed with the U.S.
Securities and Exchange Commission that as of December 31, 2024,
him and Morgan Stanley & Co. LLC beneficially owned 3,298,215
shares of Marinus Pharmaceuticals, Inc.'s Common Stock,
representing 6% of the shares outstanding.
Mr. Morgan Stanley may be reached at:
Morgan Stanley & Co. LLC
1585 Broadway
New York NY 10036
Tel: 212-761-4000
A full-text copy of Mr. Stanley's SEC Report is available at:
https://tinyurl.com/ms7njcph
About Marinus Pharmaceuticals
Marinus Pharmaceuticals, Inc. -- www.marinuspharma.com -- is a
commercial-stage pharmaceutical company dedicated to the
development of innovative therapeutics for seizure disorders. The
Company first introduced FDA-approved prescription medication
ZTALMY (ganaxolone) oral suspension CV in the U.S. in 2022 and
continues to invest in the potential of ganaxolone in IV and oral
formulations to maximize therapeutic reach for adult and pediatric
patients in acute and chronic care settings.
Philadelphia, Pennsylvania-based Ernst & Young LLP, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 5, 2024, citing that the Company has suffered
recurring losses from operations and has stated that substantial
doubt exists about the Company's ability to continue as a going
concern.
As of June 30, 2024, Marinus Pharmaceuticals had $87.1 million in
total assets, $134.4 million in total liabilities, and $47.3
million in total stockholders' deficit.
MATCH GROUP: Moody's Affirms 'Ba2' CFR, Outlook Stable
------------------------------------------------------
Moody's Ratings affirmed Match Group, Inc.'s (Match) Ba2 corporate
family rating and Ba2-PD probability of default rating. Moody's
also upgraded Match's senior unsecured notes to Ba2 from Ba3 issued
by subsidiary, Match Group Holdings II, LLC ("Holdings II"), a
wholly-owned second tier holding company, and the existing Ba1
rating on the senior secured revolving credit facility has been
withdrawn. The speculative grade liquidity for Match is unchanged
at SGL-1. The outlook is stable.
The upgrade of the senior unsecured notes reflects the repayment of
the $425 million senior secured term loan B in January 2025 that
removes a substantial portion of the secured debt in the capital
structure. Following the repayment of the term loan, the only
secured debt ahead of the unsecured notes is the $500 million
revolving credit facility. Pro forma leverage declined to about
3.4x following the repayment from roughly 3.8x, including Moody's
standard lease adjustments as of LTM Q4 2024.
RATINGS RATIONALE
Match's Ba2 CFR is supported by the company's market position as
the leading global provider in the online dating category led by
the Tinder and Hinge brands. Leverage is relatively moderate and
likely to decline slightly in 2025 while continuing to generate
high levels of operating cash flow. There is good geographic
diversity, and Moody's project additional expansion outside the US
as dating app usage gains international acceptance.
The credit profile is constrained by Match's narrow business focus
in a highly competitive industry with around 57% revenue
concentration in the Tinder brand. While Match has a portfolio of
different dating brand names, some of them are in decline and
future growth will be reliant largely on results from its Tinder
and Hinge brands as well as newer dating app offerings. Match faces
significant competition from a multitude of companies including
Bumble and Meet Group, as well as other smaller operators. The
substantial growth experienced historically has slowed, and Moody's
expect revenue growth to be relatively flat in 2025 as the company
carries out initiatives to revive growth. The online dating market
is also susceptible to sudden changes in consumer preferences and
rapidly evolving technology that could lead to declines in user
activity and impact customer conversion and monetization.
Moody's have decided to withdraw the senior secured revolving
credit facility rating following a review of the issuer's request
to withdraw this rating.
The stable outlook reflects Moody's view that Match's revenue and
EBITDA will be largely unchanged in 2025 as the company pursues
strategies to drive enhanced growth. Leverage is likely to decline
slightly in 2025 driven by additional debt repayment. While the
Hinge brand will continue to demonstrate good growth, improving
growth at Tinder will be more challenging as it seeks to continue
to enhance the user experience. Some of Match's newer dating apps
that are directed at more specific consumer demographic groups will
also support growth, but the company will need to offset declines
in more mature apps and online services which are included in the
evergreen brands. Match will distribute free cash flow (FCF) to
shareholders and will continue to consider additional acquisitions
to increase scale and the overall portfolio of brands.
Moody's expect Match will maintain very good liquidity over the
next 12-15 months as reflected in the speculative grade liquidity
(SGL) rating of SGL-1, supported by about $966 million of cash as
of Q4 2024 and an undrawn $500 million revolving credit facility,
although pro forma cash is lower following the $425 million term
loan payment. The revolver's maturity date is the earlier of March
2029 or 91 days prior to the maturity of the senior notes due in
2027, 2028, or 2029. Pro FCF as a percentage of debt has risen to
about 26% LTM Q4 2024 from 12% FY 2022. Match will seek to return a
significant portion of operating cash flow to shareholders through
stock buy backs ($753 million as of LTM Q4 2024) and through a
recently initiated dividend payment, which will weigh on FCF going
forward. A portion of the cash balance may be used for additional
debt repayment or acquisitions. Capital expenditures were $51
million in FY 2024, and Moody's expect spending will remain in this
range in 2025.
When the revolver is drawn, Match is required to maintain a
Consolidated Net Leverage Ratio of less than or equal to 5.0x (as
defined in the bank credit agreement). The calculation excludes the
exchangeable notes since these obligations reside at finco
entities; however, Moody's include them in Moody's adjusted gross
debt calculations. As of Q4 2024, the company's reported trailing
twelve-month net leverage is 2.3x (as defined).
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Match demonstrated good organic
revenue growth above 5% with EBITDA margin expansion leading to
leverage sustained below 3x total debt to EBITDA (as calculated by
Moody's). Consistently strong FCF as a percentage of debt in the
20% range and a diversified portfolio of brands with reduced
reliance on any one app. Maintenance of at least a good liquidity
profile with prudent financial policies would also be needed.
The ratings could be downgraded if leverage approached 4x (as
calculated by Moody's) due to declines in operating performance or
debt funded acquisitions. A decline in organic revenue or a
weakened liquidity position including a significant decline in FCF
generation or reduced revolver availability could also lead to
negative rating pressure. The senior unsecured notes could also be
downgraded if the company issues new senior secured debt.
Headquartered in Dallas, Texas, Match Group, Inc. is a leading
global online dating provider via its major brands in over 40
languages including Tinder, Hinge, Match, Meetic, OkCupid, Pairs,
PlentyOfFish, Azar and more. In June 2020, Match Group separated
from InterActiveCorp (IAC). Revenue totaled approximately $3.5
billion LTM Q4 2024.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
MEMSTAR USA: Sec. 341(a) Meeting of Creditors on March 19
---------------------------------------------------------
On February 7, 2025, Memstar USA Inc. filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Southern District of Texas.
According to court filing, the Debtor reports $10,547,608 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 19,
2025 at 10:00 AM, US Trustee Houston Teleconference.
About Memstar USA Inc.
Memstar USA Inc. owns the property located at 3655 Pollock Drive,
Conroe, TX 77303. The Property encompasses 10 acres of land, a
41,000 sq. ft. manufacturing plant, and a 4,500 sq. ft. office
building. The current value of the Property is estimated at $7.5
million.
Memstar USA Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-30764) on February 7,
2025. In its petition, the Debtor reports total assets of
$8,712,000 and total liabilities of $10,547,608.
The Debtor is represented by:
Michael J. Durrschmidt, Esq.
DYKEMA GOSSETT PLLC
5 Houston Center 1401 McKinney Street, Suite 1625
Houston TX 77010
Tel: 713-904-6900
E-mail: mdurrschmidt@Dykema.com
MENORAH CAMPUS: Seeks Chapter 11 Bankruptcy Protection in New York
------------------------------------------------------------------
On February 6, 2025, Menorah Campus Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Western District
of New York.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will not be available to unsecured creditors.
About Menorah Campus Inc.
Menorah Campus Inc. operates in the healthcare sector.
Menorah Campus, Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-10127) on February 6,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
The Debtor is represented by:
Kevin R. Lelonek, Esq.
GROSS SHUMAN PC
465 Main St Suite 600
Buffalo, NY 14203
Tel: (716) 854-4300
E-mail: klelonek@gross-shuman.co
MMK FAMILY: Gets Interim OK to Use Cash Collateral
--------------------------------------------------
MMK Family Investments, Inc. received interim approval from the
U.S. Bankruptcy Court for the District of Maine to use cash
collateral.
The company needs to use cash collateral to fund the operation of
its business while in Chapter 11. Its 13-week cash flow budget
projects total cash disbursements of $206,322 for the period from
Feb. 4 to May 3.
Cornerstone Bank and its successors and assigns, including Coastal
States Bank, may assert an interest in the cash collateral. This
pre-bankruptcy lienholder will be granted liens on all assets of
the company and its estate other than the proceeds of any avoidance
actions as protection for the use of its cash collateral.
In addition, Cornerstone Bank will continue to hold liens, rights
as assignee and security interests in all property of MMK Family.
In case these liens are insufficient to protect Cornerstone Bank,
the lienholder will be granted an allowed administrative claim
against the company.
A final hearing will take place on March 13.
About MMMK Family Investments
MMK Family Investments, Inc. operates a sandwich shop as franchisee
of Firehouse Subs, an international brand of the Restaurant Brands
International Group.
MMK Family filed Chapter 11 petition (Bankr. D. Maine Case No.
25-20020) on February 4, 2025, listing up to $100,000 in assets and
up to $1 million in liabilities. Michael Koman, president of MMK
Family, signed the petition.
Judge Michael A. Fagone oversees the case.
Adam Prescott, Esq., Bernstein Shur Sawyer & Nelson, PA, represents
the Debtor as legal counsel.
MMK SUBS: Gets Interim OK to Use Cash Collateral
------------------------------------------------
MMK Subs, LLC received interim approval from the U.S. Bankruptcy
Court for the District of Maine to use cash collateral.
The company requires the use of cash collateral to fund the
operation of its business while in Chapter 11. Its 13-week cash
flow budget projects total cash disbursements of $208,377 for the
period from Feb. 4 to May 3.
SouthState Bank, as successor to Atlantic Capital, may assert an
interest in the cash collateral. This pre-bankruptcy lienholder
will be granted liens on all assets of the company and its estate
other than the proceeds of any avoidance actions as protection for
the use of its cash collateral.
In addition, SouthState Bank will continue to hold liens, rights as
assignee and security interests in proceeds, products, offspring,
or profits acquired by MMK Subs after the petition date.
In case these liens are insufficient to protect SouthState Bank,
the lienholder will be granted an allowed administrative claim
against MMK Subs.
About MMK Subs LLC
MMK Subs, LLC filed Chapter 11 petition (Bankr. D. Maine Case No.
25-20019) on February 4, 2025, listing up to $100,000 in assets and
up to $1 million in liabilities. Michael Koman, president of MMK
Subs, signed the petition.
Judge Michael A. Fagone oversees the case.
Adam Prescott, Esq., Bernstein Shur Sawyer & Nelson, PA, represents
the Debtor as legal counsel.
SouthState Bank, as prepetition lienholder, is represented by:
Jeremy R. Fischer, Esq.
Drummond Woodsum
84 Marginal Way, Suite 600
Portland, Maine 04101
Telephone: (207) 772-1941
Email: jfischer@dwmlaw.com
MULTIBAND FIELD: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Multiband Field Services, Inc.
2808 Network Boulevard
Suite 300
Frisco, TX 75034
Business Description: Multiband Field Services specializes in
providing a wide range of field services to
various industries. Their offerings are
tailored to meet the specific needs of each
client, ensuring timely and reliable
service.
Chapter 11 Petition Date: February 11, 2025
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 25-30515
Debtor's Counsel: Davor Rukavina, Esq.
MUNSCH HARDT KOPF & HARR, P.C.
500 N. Akard St., Ste. 4000
Dallas, TX 75201
Tel: 214-855-7500
E-mail: drukavina@munsch.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Scott M. Seidel as trustee of Goodman
Networks, Inc.
The Debtor did not 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/RMSYJLY/Multiband_Field_Services_Inc__txnbke-25-30515__0001.0.pdf?mcid=tGE4TAMA
MYOMO INC: Rosalind Advisors Holds 9.9% Stake as of Dec. 31
-----------------------------------------------------------
Rosalind Advisors, Inc., Advisor to RMF, and affiliates, Rosalind
Master Fund LP - RMF, Steven Salamon, and Gilad Aharon, disclosed
in a Schedule 13G/A Report filed with the U.S. Securities and
Exchange Commission that as of December 31, 2024, they collectively
owned an aggregate of 7,574,330 shares consisting of 2,998,945
shares of Common Stock and 4,575,385 shares of Common Stock
issuable upon exercise of pre-funded warrants in Myomo, Inc.,
representing 9.9% of the 33,244,155 shares of the Company's common
stock outstanding as of December 5, in accordance with the 424B5
filed on December 5.
Rosalind Master Fund L.P. may have been deemed to have the
beneficial ownership of 2,998,945 shares of common stock
representing the beneficial ownership of approximately 9.02% of the
common stocks, which excludes the 4,575,385 shares issuable upon
the exercise of pre-funded warrants because they contain a blocker
provision under which the holder thereof does not have the right to
exercise any of the warrant to the extent that such exercise would
result in beneficial ownership by the holder in excess of 9.99% of
the Common Stock. Consequently, as of December 31, 2024, the
Reporting Persons were not able to exercise any of the warrants due
to the Blockers.
Rosalind Advisors, Inc. is the investment advisor to RMF and may be
deemed to be the beneficial owner of shares held by RMF. Steven
Salamon is the portfolio manager of the Advisor and may be deemed
to be the beneficial owner of shares held by RMF.
A full-text copy of Rosalind's SEC Report is available at:
https://tinyurl.com/f72ehjfz
About Myomo
Headquartered in Cambridge, Massachusetts, Myomo, Inc. --
http://www.myomo.com/-- is a wearable medical robotics company
that offers expanded mobility for those suffering from neurological
disorders and upper limb paralysis. Myomo develops and markets the
MyoPro product line. MyoPro is a powered upper limb orthosis
designed to support the arm and restore function to the weakened or
paralyzed arms of patients suffering from CVA stroke, brachial
plexus injury, traumatic brain or spinal cord injury, ALS or other
neuromuscular disease or injury.
As of March 31, 2024, the Company had $16,520,857 in total assets,
$5,621,100 in total liabilities, and $10,899,757 in total
stockholders' equity.
According to the Company's Quarterly Report on Form 10-Q for the
quarterly period March 31, 2024, its historical losses and cash
used in operations are indicators of substantial doubt regarding
the Company's ability to continue as a going concern.
Based upon its current cash, cash and cash equivalents, and
short-term investments, as well as the future expected cash flows,
the Company believes that its available cash, cash equivalents, and
short-term investments will fund its operations for at least the
next 12 months from the issuance date of the financial statements.
The Company has historically funded its operations through
financing activities, including raising equity and debt. The
Company believes that based on the final fees published by the
Centers for Medicare and Medicaid Services for the Company's
products, which became effective on April 1, 2024, if the Company
is able to hire at least 50 to 60 additional employees during the
first half of 2024 as planned to increase its clinical,
reimbursement and manufacturing capacity, and its supply chain is
able to meet its volume requirements without disruption, the
Company believes it can achieve cash flow breakeven on a quarterly
basis by the fourth quarter of 2024. In addition, the Company
believes that it has access to capital resources through possible
public or private equity offerings, exercises of outstanding
warrants, debt financings, or other means. Debt financing may
contain other terms that are not favorable to the Company or its
stockholders. Based on the Company's latitude as to the timing and
amount of certain expenses, its current cash position and operating
plans, the Company believes that the substantial doubt is
alleviated as of the issuance date its quarterly report for the
period ended March 31, 2024.
NATUS MEDICAL: Moody's Affirms 'B3' CFR, Outlook Stable
-------------------------------------------------------
Moody's Ratings affirmed Natus Medical, Inc's ratings including its
B3 Corporate Family Rating, B3-PD Probability of Default Rating and
B3 ratings on the senior secured bank credit facilities. The
outlook is stable.
This follows Natus' recently completed spinoff of its Sensory
business to its sponsor ArchiMed in January 2025. The transaction
includes proceeds sent to Natus, which will be used to repay debt.
Natus will retain the Neuro business.
Pro forma for the transaction, leverage will be 5.7x times as of
December 30, 2024, inclusive of the spinoff and the debt paydown.
The affirmation of Natus' ratings reflects Moody's expectations
that the core Neuro business will maintain its high growth rate and
strong margin profile. The affirmation also reflects good
liquidity, with further improvements in free cash flow after the
one-time post separation tax is paid in 2025. Moody's expect
leverage will decline towards the mid 4 times range by the end of
2026.
RATINGS RATIONALE
Natus' B3 CFR reflects the company's moderately high leverage, at
roughly 5.7 times for the twelve months ending December 30, 2024,
on a Moody's-adjusted basis and pro forma for the spinoff and debt
paydown. Natus' rating is constrained by the company's small scale
and narrow business focus on diagnosis and monitoring of neurologic
disorders, after the spinoff of the sensory products and services
portfolio. Furthermore, the rating is constrained by cost inflation
and limited pricing power caused by on-going pressure on US
hospitals budgets. The rating is supported by Natus' leading
position in neuro markets and favorable long-term growth prospects.
Moody's expect that earnings growth will continue over the next
12-18 months, which will drive Natus' leverage towards the mid 4
times range.
Moody's expect the company to have good liquidity over the next
12-18 months. Liquidity is supported by the company's projected
cash balance of ~$40 million of cash after the debt repayment at
Natus, which Moody's expect will happen in February. Liquidity is
also supported by a $50 million revolving credit facility that
expires in 2027, which Moody's expect to be undrawn after the debt
paydown. Moody's expect free cash flow to be negative in 2025 after
accounting for the one-time post separation tax payment, followed
by strong free cash flow generation in 2026.
The outlook is stable. Moody's expect Natus' earnings will continue
to grow, driven by strong growth in the neuro market. The outlook
also reflects Moody's view that the company will maintain good
liquidity and leverage will decline in the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Natus meaningfully increases its
scale and diversification while generating positive free cash flow.
Quantitatively, the ratings could be upgraded if adjusted debt to
EBITDA was sustained below 4.5 times.
The ratings could be downgraded if the company's operating
performance suffers due to failure to effectively manage its
growth, if pricing pressure develops, or if liquidity
deteriorates.
Headquartered in Middleton, Natus Medical, Inc manufactures and
commercializes medical devices and related supplies in neurology
diagnostics. Natus is owned by private equity firm ArchiMed.
The principal methodology used in these ratings was Medical
Products and Devices published in October 2023.
NORTH LIBERTY: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The U.S. Trustee for Region 12 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of North Liberty Transportation, LLC.
About North Liberty Transportation
North Liberty Transportation, LLC operates within the General
Freight Trucking sector, providing transportation and logistics
services for a variety of goods across various regions.
North Liberty Transportation sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Iowa Case No. 25-00025) on
January 9, 2025. In its petition, the Debtor reported total assets
of $3,422,463 and total liabilities of $4,716,117.
Siobhan Briley, Esq., at Pugh Hagan Prahm, PLC represents the
Debtor as legal counsel.
NORTHVOLT AB: Ontario Fund Reduces Value of $400MM Investment
-------------------------------------------------------------
Layan Odeh and Paula Sambo of Bloomberg News reports that
Investment Management Corp. of Ontario has marked down its $400
million investment in Northvolt AB, the electric vehicle battery
maker that filed for bankruptcy protection last year, according to
sources familiar with the matter.
The Canadian pension manager purchased Northvolt convertible bonds
in 2023, its largest European investment at the time, the report
related. IMCO manages approximately C$77 billion ($53.8 billion)
on behalf of public-sector groups in Ontario.
A spokesperson for the fund declined to comment, according to the
report.
About Northvolt AB
Northvolt AB was established in 2016 in Stockholm, Sweden.
Pioneering a sustainable model for battery manufacturing, the
company has received orders from several leading automotive
companies. The company is currently delivering batteries from its
first gigafactory, Northvolt Ett, in Skelleftea, Sweden and from
its R&D and industrialization campus, Northvolt Labs, in Vasteras,
Sweden.
On Nov. 21, 2024, Northvolt AB and eight affiliated debtors filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90577).
The cases are before the Honorable Alfredo R. Perez.
Northvolt is being advised by Teneo as its restructuring and
communications advisor. Kirkland & Ellis LLP, A&O Shearman and
Mannheimer Swartling Advokatbyra AB are serving as legal counsel.
The company has also engaged Rothschild & Co to run its marketing
process. Stretto is the claims agent.
NU STYLE LANDSCAPE: Court OKs Appointment of Examiner
-----------------------------------------------------
Judge Thomas McNamara of the U.S. Bankruptcy Court for the District
of Colorado granted the motion of the unsecured creditors'
committee to appoint an examiner in the Chapter 11 case of Nu Style
Landscape & Development, LLC.
Judge McNamara ordered the examiner to:
(i) Investigate the acts, conduct, assets, liabilities, and
financial condition of Nu Style, the operation of its business and
the desirability of the continuance of such business, and any other
matter relevant to the case or to the formulation of a plan of
reorganization including any plan filed by the company or any other
party.
(ii) As soon as practicable, file a statement of the examiner's
investigation with the court, including any fact ascertained
pertaining to fraud, dishonesty, incompetence, misconduct,
mismanagement, or irregularity in the management of the affairs of
the company, or to a cause of action available to the estate; and
transmit a copy or a summary of any such statement to the unsecured
creditors' committee or equity security holders' committee, to any
indenture trustee, to the company and counsel for the company and,
to the Office of the U.S. Trustee.
About NU Style Landscape & Development
Nu Style Landscape & Development, LLC, a company in Denver, Colo.,
filed Chapter 11 petition (Bankr. D. Colo. Case No. 23-14475) on
Oct. 2, 2023, with $1 million to $10 million in both assets and
liabilities. Michael Moilanen, managing member, signed the
petition.
Judge Thomas B. McNamara oversees the case.
Allen Vellone Wolf Helfrich & Factor, PC, serves as the Debtor's
legal counsel.
NUTRACAP HOLDINGS: Chapter 11 Trustee Appointment Sought
--------------------------------------------------------
Nutracap Labs, LLC and former owners and executives of Nutracap
Holdings, LLC asked the U.S. Bankruptcy Court for the Northern
District of Georgia to appoint a trustee to take over the company's
Chapter 11 case.
In their motion, Nutracap Labs, John Wesley Houser, David Bromwich
and Thomas Lennon blamed the current chief executive officer of
Nutracap Holdings, Marcos Fabio Lopes e Lima, for the rapid decline
of the company, and accused him of fraud, gross mismanagement and
incompetence, among other things.
"Under the new CEO with essentially the same employees and the same
products, [Nutracap Holdings'] business collapsed from $74 million
in annual sales in 2022 to $48 million in 2023 and $26 million in
2024," the movants said in the court filing.
The movants collectively hold more than $12 million in unsecured
notes arising from the sale of Nutracap Holdings to the company's
current CEO in 2022. They will likely receive nothing unless the
company's current management is replaced, according to their
attorney, Brad Fallon, Esq., at Fallon Law, PC.
If a neutral Chapter 11 trustee is appointed and the current CEO is
replaced by Mr. Lennon, this former Nutracap Holdings corporate
finance consultant and the other movants are ready to provide up to
$1.5 million in financing via a short-term priming loan and up to
an additional $5.5 million in new capital, Mr. Fallon said.
"A change in management back to the previous owners and executives,
with whom the employees, suppliers and customers have long-term
experience and trust, combined with an influx of capital, would be
enough to support a successful turnaround," Mr. Fallon said.
Mr. Fallon can be reached through:
Fallon Law, PC
Brad Fallon, Esq.
1201 W. Peachtree St. NW, Suite 2625
Atlanta, GA 30309
Phone: (404) 849-2199
Fax (470) 994-0579
Email: brad@fallonbusinesslaw.com
About Nutracap Holdings
Nutracap Holdings, LLC is a manufacturer of nutraceuticals and
dietary supplements in Norcross, Ga.
Nutracap Holdings sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50430) on January 14,
2025, with up to $50 million in both assets and liabilities. Marcos
Fabio Lopes e Lima, chief executive officer of Nutracap Holdings,
signed the petition.
Judge Lisa Ritchey Craig oversees the case.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC,
represents the Debtor as legal counsel.
OMEGA THERAPEUTICS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Omega Therapeutics, Inc.
140 First Street, Suite 501
Cambridge, MA 02141
Business Description: Omega Therapeutics is a biotechnology
company in its development stages, leading
innovation in a novel approach to leverage
mRNA therapeutics as programmable epigenetic
treatments through its OMEGA Epigenomic
Programming platform. The OMEGA platform
harnesses the power of epigenetics, the
mechanism that controls gene expression and
every aspect of an organism's life from cell
genesis, growth, and differentiation to cell
death. The OMEGA platform enables control
of fundamental epigenetic processes to
correct the root cause of disease by
returning aberrant gene expression to a
normal range without altering native nucleic
acid sequences.
Chapter 11 Petition Date: February 10, 2025
Court: United States Bankruptcy Court
District of Delaware
Case No.: 25-10211
Judge: Hon. Brendan Linehan Shannon
Debtor's
Counsel: Derek C. Abbott, Esq.
Eric D. Schwartz, Esq.
Andrew R. Remming, Esq.
Daniel B. Butz, Esq.
Jonathan M. Weyand, Esq.
Luke Brzozowski, Esq.
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
1201 N. Market Street, 16th Floor
P.O. Box 1347
Wilmington, DE 19801
Tel: 302-351-9357
Fax: 302-658-3989
Email: dabbott@morrisnichols.com
eschwartz@morrisnichols.com
aremming@morrisnichols.com
dbutz@morrisnichols.com
jweyand@morrisnichols.com
lbrzozowski@morrisnichols.com
Debtor's
Restructuring
Advisor: TRIPLE P RTS, LLC
Debtor's
Investment
Banker: TRIPLE P SECURITIES, LLC
Debtor's
Special
Counsel: LATHAM & WATKINS LLP
Debtor's
Claims Agent &
Administrative
Advisor: KROLL RESTRUCTURING ADMINISTRATION LLC
Total Assets as of Jan. 28, 2025: $137,529,941
Total Debts as of Jan. 28, 2025: $140,421,354
The petition was signed by Jeffrey T. Varsalone, independent
restructuring expert director.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/EHVVXNA/Omega_Therapeutics_Inc__debke-25-10211__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Atum Trade Debts $462,394
37950 Central Court
Newark, CA 94560
Attn: President/General Counsel
Tel: 650-853-8347
Email: ar@atum.bio
2. Latham & Watkins LLP Professional $364,790
PO Box 7247-8181 Services
Philadelphia, PA 19170-8181
Attn: President/General Counsel
Tel: 212-906-1200
Email: giselle.lantosca@lw.com
3. Deloitte & Touche LLP Professional $210,000
PO Box 844708 Services
Dallas, TX 75284-4708
Attn: President/General Counsel
Tel: 212-492-4000
Email: deloittepayments@deloitte.com
4. Benchling Inc. Technology & $100,000
555 Montgomery St Ste. 1700 Communication
San Francisco, CA 94111 Services
Attn: President/General Counsel
Tel: 415-591-2798
Email: finance@benchling.com
5. Catalent Pharma Solutions LLC Trade Debts $77,227
25111 Network Place
Chicago, IL 60673-1251
Attn: President/General Counsel
Tel: 877-951-0137
Email: ar@catalent.com
6. Wyatt Technology Corporation Trade Debts $76,516
6330 Hollister Ave
Santa Barbara, CA 93117
Attn: President/General Counsel
Tel: 805-681-9009
Email: info@wyatt.com
7. Aldevron LLC Trade Debts $74,798
4055 41st Avenue South
Fargo, ND 58104
Attn: President/General Counsel
Tel: 701-297-9256
Email: ar@aldevron.com
8. Qiagen Manchester Limited Trade Debts $74,200
Citylabs 2.0, Hathersage Road
Manchester M13 0BH
United Kingdom
Attn: President/General Counsel
Tel: +44 808 234 3974
Email: accountsreceivable.uk@qiagen.com
9. Amazon Web Services Inc. Technology & $71,531
PO Box 84023 Communication
Seattle, WA 98124-8423 Services
Attn: President/General Counsel
Tel: 206-266-4064
Email: ar-businessinvoicing@amazon.com
10. JMS Advisors, Inc. Professional $66,405
1572 Granger Way Services
Redwood City, CA 94061
Attn: President/General Counsel
Tel: 724-350-7718
Email: jmadvisorsinc@gmail.com
11. Acuitas Therapeutics Inc. Professional $56,267
6190 Agronomy Road Suite 402 Services
Vancouver, BC VT 1Z3
Canada
Attn: President/General Counsel
Tel: 604-227-3904
Email: meckerle@acuitastx.com
12. Tempus Labs, Inc. Technology & $55,000
600 W Chicago Ave, Suite #510 Communication
Chicago, IL 60654 Services
Attn: President/General Counsel
Tel: 800-739-4137
Email: ar@tempus.com
13. Thermo Fisher Financial Technology & $53,136
Services Inc. Communication
P.O. Box 742764 Services
Atlanta, GA 02541
Attn: President/General Counsel
Tel: 800-678-5599
Email: amy.callahan@thermofisher.com
14. World Courier Inc. Shipping & $42,355
PO Box 842325 Warehouse Services
Boston, MA 02284-2325
Attn: President/General Counsel
Tel: 800-221-6600
Email: nyc-ar@worldcourier.com
15. Global Life Sciences Trade Debts $42,192
Solutions USA LLC
PO Box 643065
Pittsburgh, PA 15264-3065
Attn: President/General Counsel
Tel: 800-526-3593
Email: remit@cytiva.com
16. CMIC, Inc. Trade Debts $40,850
2860 Forbs Avenue
Hoffman Estates, IL 60192
Attn: President/General Counsel
Tel: 847-645-0407
Email: cmicincac@cmigroup.com
17. Novogene Corporation Inc. Trade Debts $40,397
P.O. Box 278642
Sacramento, CA 95827-8642
Attn: President/General Counsel
Tel: 916-252-0068
Email: sacar@novogeneusa.com
18. K&L Gates LLP Professional $37,702
PO Box 844255 Services
Boston, MA 02284-4255
Attn: President/General Counsel
Tel: 617-261-3100
Email: accountsreceivables@glgates.com
19. SGS Canada Inc. Trade Debts $35,495
6490 Vipond Drive
Mississauga, ON L5T 1W8
Canada
Attn: President/General Counsel
TEl: 905-364-3771
Email: ca.argroup@sgs.com
20. Polymun Scientific Trade Debts $28,138
Donaustr. 99, 3400
Kolsterneuburg
Austria
Attn: President/General Counsel
Email: office@polymun.com
ORSIPEL V LLC: Sec. 341(a) Meeting of Creditors on March 6
----------------------------------------------------------
On February 7, 2025, Orsipel V LLC filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Southern District of New York.
According to court filing, the Debtor reports $10,102,000 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 6,
2025 at 01:00 PM at Office of UST (TELECONFERENCE ONLY).
About Orsipel V LLC
Orsipel V LLC is the owner of a mixed-use property located at 5355
Stone Street, also known as 1517 South William Street, New York, NY
10004. The Property consists of seven residential units and two
commercial units, all of which are currently rented, except for two
vacant residential units and one vacant commercial unit. The
current value of the Property is $15.1 million.
Orsipel V LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 25-10238) on February 7, 2025. In
its petition, the Debtor reports total aAssets of $15,115,000 and
total liabilities of $10,102,000.
Honorable Bankruptcy Judge David S. Jones handles the case.
The Debtor is represented by:
Rachel S. Blumenfeld, Esq.
LAW OFFICE RACHEL S. BLUMENFELD PLLC
26 Court Street, Suite 814
Brooklyn, NY 11242
Tel: 718-858-9600
E-mail: rachel@blumenfeldbankruptcy.com
PARAMOUNT RESOURCES: Moody's Lowers CFR to 'B1', Outlook Stable
---------------------------------------------------------------
Moody's Ratings downgraded Paramount Resources Ltd.'s corporate
family rating to B1 from Ba2 and the probability of default rating
to B1-PD from Ba2-PD. The outlook is stable. Previously, the rating
was on review for downgrade. The speculative grade liquidity rating
(SGL) remains unchanged at SGL-1. Subsequent to this rating action,
Paramount's ratings will be withdrawn at the issuer's request. This
concludes Moody's ratings review that was initiated on November 14,
2024 following Paramount's agreement to sell its core Grand Prairie
Montney assets to Ovintiv Inc. (Baa3 stable).
The downgrade primarily reflects Paramount's substantially smaller
production base Despite exceptionally robust metrics given the lack
of financial debt, future growth will come from early-stage
developments requiring high capital spend, driving sustained
negative free cash flow. The company expects to grow production
from around 30,000 boe/d pro-forma for the divestiture toward an
exit rate of 45,000 boe/d by year end 2025 (figures are gross).
Paramount will use a substantial portion of the C$3.3 billion in
proceeds to pay shareholder distributions totaling nearly C$2.2
billion, initially leaving substantial excess cash on the balance
sheet to fund growth capital.
RATINGS RATIONALE
Paramount is supported by: (1) robust metrics complemented by very
good liquidity; (2) adherence to a conservative financial policy
underpinned by low debt; and (3) a consistent track record of
developing assets with good operational results. The company is
constrained by: (1) a small production base and reserves; (2) a
limited track record of sustaining long-term production growth and
positive free cash flow; and (3) significant exposure to discounted
AECO natural gas.
Paramount has very good liquidity (SGL-1). Pro-forma for the
divestiture and shareholder distribution, Moody's estimate sources
of cash totaling over C$1 billion and full availability under the
C$500 million revolving credit facility that matures in May 2026.
Under Moody's lower, medium term price assumptions and without
sensitizing for high levels of growth capex, Moody's would expect
Paramount to generate negative free cash flow of over C$500 million
during 2025. The company has no near-term debt maturities. Moody's
expect Paramount to maintain a robust cushion with its two
financial covenants. Alternate liquidity is good given the
investments Paramount holds in other companies as well as its
sizeable acreage position.
The stable outlook reflects Moody's expectation that the company
will sustain robust credit metrics and maintain a conservative
financial policy while growing production.
Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).
Paramount is a publicly-traded, Calgary, Alberta-based exploration
and production company. Its principal properties are located in
Alberta and British Columbia.
The principal methodology used in these ratings was Independent
Exploration and Production published in December 2022.
PERFECTION AUTO: To Sell Automobile Body Shop to JHCC Holdings
--------------------------------------------------------------
Perfection Auto Refinish, Inc. seeks permission from the U.S,
Bankruptcy Court for the Western District of Tennessee, Western
Division, to sell all or substantially all of the Debtor’s
assets.
The Debtor is a Tennessee corporation which operates a full service
automobile body shop which provides collision repair and auto
detailing services. A significant percentage of the Debtor's income
is generated from referrals from major auto insurance carriers who
refer their customers to the Debtor to have their vehicles
repaired. The Debtor's principal place of business is located at
1826 and 1836 Vanderhorn Drive, Memphis, Tennessee 38124.
The Debtor and its principal, Jeff McCraw, leases the Property
consisting of several commercial buildings located on approximately
1.37 acres in Memphis, Tennessee from the Norma Lee Pilcher
Revocable Living Trust.
The Debtor also owns inventory, accounts receivables, equipment,
machinery, furniture, fixtures and office equipment, located at its
facility. Substantially all of the Debtor’s Personal Property is
encumbered by pre-petition liens of Insouth Bank. The Debtor is
indebted to Insouth on account of two loans in the approximate
respective amounts of $150,212,81 and $103, 778.53 as of the
petition date.
Craig M. Geno is the duly appointed and acting Subchapter V
Trustee.
Subordinate security interests in accounts receivable are asserted
by the creditors with their respective amounts:
(a) Fox Business Funding - $15,808.00
(b) Amsterdam Capital Group - $61,830.00
(c) Capybara - $54,437.00
(d) Caymus - $50,688.00
(e) Everest Business Funding - $28,696.70
Because the indebtedness to Insouth Bank exceeds the value of the
Debtor's accounts receivables, the Debtor asserts that the
creditors are unsecured and have no protectible interest in
accounts receivable.
The Debtor's business has grown steadily since its formation and
was a successful business until the fall of 2023 when six employees
left to go to work for a competitor. These employees were
responsible for doing the body work during the repair process.
Without these employees, the Debtor had no employees left to do
this type of work. Beginning in November 2023, Perfection saw a
significant drop in revenue which resulted from these employees
leaving.
The Debtor enters an asset purchase agreement with JHCC Holdings,
LLC, a Delaware limited liability company with its principal place
of business in Pike Road, Alabama.
JHCC proposes to purchase all of the Debtor’s right, title, and
interest in the Debtor's goodwill, real estate, shop and office
equipment, supplies, furnishings and furniture, leasehold
improvements, intangible assets, work in progress inventory, raw
material and miscellaneous assets and excluding the Excluded
Assets. The purchase purchase price is $2,000,000 subject to
certain adjustment and holdbacks.
The target closing date for closing the purchase once the due
diligence period has expired is May 25, 2025.
The Debtor believes that sale of the assets to JHCC would be in the
best interest of the Debtor and its estate and would maximize value
of the assets of the Debtor by continuing the business and the
employment of approximately 19 employees.
The Debtor's schedules list total secured debt of $251,000 and
total unsecured debt of $995,306.17 in unsecured debt. After
reviewing proofs of claims filed in the case, the Debtor estimates
total secured debt (exclusive of disputed merchant loan liens) of
approximately $273,628, total priority claims of $4002, total
unsecured claims of approximately $863,380 (inclusive of disputed
merchant loan claims), and non-professional administrative claims
of $140,132. Based on the foregoing, the Debtor projects that the
sale proceeds will be sufficient to satisfy all allowed claims.
The Debtor has given notice of its motion to all parties on the
Matrix, which includes all creditors, lessors, taxing authorities,
and regulatory authorities. In addition, the Debtor believes that
this proposed sale is not subject to the provisions of Section 7 of
the Clayton Act, commonly known as the Hart-Scott-Rodino Act.
About Perfection Auto Refinish, Inc.
Perfection Auto Refinish LLC provides auto body repair services to
the greater Memphis, TN, area. Its services include auto body
repair, collision repair, ceramic coating, auto detailing, paint
corrections, ADAS and wheel alignment.
Perfection Auto Refinish LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No.
24-23506) on July 22, 2024. In the petition signed by Jeffrey S.
McCraw, president, the Debtor reports estimated assets between
$100,000 and $500,000 and estimated liabilities between $1 million
and $10 million.
Judge Ruthie Hagan oversees the case.
Michael P. Coury, Esq., at Glankler Brown, PLLC, serves as the
Debtor's counsel.
PMHC II: S&P Affirms 'B-' ICR on Elevated Debt Leverage
-------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on PMHC
II Inc.'s (d/b/a Vibrantz Technologies Inc.), its 'B-' issue-level
rating on its senior secured debt, and its 'CCC+' issue-level
rating on its senior unsecured debt.
The outlook remains negative, reflecting the minimal cushion in its
credit metrics and the potential for a lower rating in the next few
quarters if operating performance does not improve as expected or
free operating cash flow (FOCF) deficits weaken its liquidity.
S&P said, "The negative outlook reflects the minimal cushion for
deterioration in Vibrantz's credit metrics over the next couple of
quarters, while our base case assumes its metrics will improve in
the near future. We believe Vibrantz's operating performance for
the full-year 2024 will be weaker than our initial expectations due
to the continued muted macroeconomic environment in its key
geographic regions and higher-than-expected restructuring costs
incurred by the company to optimize profitability. During 2024,
despite a weak demand environment, Vibrantz's earnings benefited
from favorable raw material price management (after the rapid
decline in the price of lithium--a key raw material) and
productivity gains from the 2022 merger's targeted cost synergies,
which have now been fully achieved. We anticipate the company will
continue to execute on some cost reduction measures, including
further footprint consolidation, and identify more areas for
optimization going forward. This will support its S&P Global
Ratings-adjusted EBITDA margins growing marginally to the 23%-25%
area.
"The company's revenues are exposed to multiple end markets that
are sensitive to interest rate movements. These include sectors
such as building and construction, automotives, furniture, and home
appliances, which on aggregate comprise about two-thirds of total
revenues. We expect some tailwinds to Vibrantz's volumes and
operating performance from such end markets in 2025 given our
base-case assumption for lower average interest rates going forward
relative to prior years. That said, we expect the ongoing weak
economic conditions in the company's key regions and potential for
higher-than-expected inflation in 2025 may hinder our forecast
earnings improvement and keep the company's metrics pressured over
the near term. Our negative outlook reflects these lingering risks
in 2025, as well as the limited cushion in Vibrantz's credit
metrics for further underperformance at the current rating.
"Vibrantz's debt leverage is still high, but we expect it to
improve at year-end 2024 and beyond. We expect Vibrantz's S&P
Global Ratings-adjusted debt to EBITDA to be above 8x for the full
year 2024, which will leave a minimal cushion for deterioration at
the current rating. We expect a sequential improvement in the
company's S&P Global Ratings-adjusted EBITDA as restructuring costs
continue to step down, and thus we expect its debt to EBITDA to
improve to below 8.5x for the full year 2024. On a weighted-average
basis, we anticipate its S&P Global Ratings-adjusted debt to EBITDA
to continue to improve to the higher end of 7x-8x over the next 12
months, which is weaker than that of similarly rated peer Potters
Borrower L.P.
"We expect Vibrantz to maintain an adequate liquidity profile for
the next 12 months despite our expectation for an FOCF deficit in
2024. Debt servicing costs remained high in 2024 and, in turn,
continued to constrain its FOCF. We now expect Vibrantz will
generate negative FOCF in 2024 due to high interest costs, a
lower-than-expected working capital release near the end of the
year to support growth in 2025, and high nonrecurring cash outlays
mainly in the form of restructuring costs. At the same time, we
believe the company will still maintain adequate liquidity (with
sources of cash exceeding uses by more than 1.2x), supported by its
revolver and accounts receivable securitization facilities, and
remain in compliance with its financial covenant over the next 12
months.
"Vibrantz benefits from its leading market positions in niche
markets and has good end-market diversity. Vibrantz holds leading
market positions in color solutions, functional coatings, and
specialty minerals. Although the company is smaller in scale than
the market leaders in color solutions, such as Sherwin-Williams
Co., RPM International Inc., and PPG Industries Inc. (which are
also more diversified), we believe it has having moderate
geographic diversity because it derives about half of its revenue
from the Americas, with the remainder split between Europe, the
Middle East, and Africa and Asia-Pacific. Vibrantz has reduced its
manufacturing footprint to 53 facilities globally as of the end of
2024 as part of its cost optimization efforts from 64 facilities
after the merger with Ferro Corp. and ASP Chromaflo in 2022, but
still retains a material international presence. The company has
good product and end-market diversity and low customer and supplier
concentration levels and benefits from a somewhat variable raw
material cost structure. Conversely, it has a significant exposure
to cyclical end markets, such as building and construction,
automotive, industrials, and agriculture, but this is partially
offset by its exposure to battery, electronics, and surface
technology markets, which are relatively less cyclical.
"The negative outlook reflects our expectations for a minimal
cushion in Vibrantz' credit metrics during the coming quarters but
an improving trend in debt leverage. We expect S&P Global
Ratings-adjusted debt to EBITDA could remain above 8x for the next
few quarters but be on the higher end of 7x-8x on a
weighted-average basis. We anticipate the company's S&P Global
Ratings-adjusted EBITDA to continue to improve in subsequent
quarters with continued productivity savings and potential upside
from lower interest rates supporting cyclical end-market demand.
Furthermore, we expect lower interest rates in 2025 will also
result in improving interest coverage ratios going forward. We
believe Vibrantz will have adequate liquidity for the next 12
months, generate a modest FOCF surplus, and remain in compliance
with its springing financial covenant."
S&P could take a negative rating action on Vibrantz in the next few
quarters if:
-- Its consolidated earnings are lower than S&P projects due to a
prolonged softness in volumes, weakness in its end market demand,
or an inability to improve its EBITDA margins amid an unfavorable
economic environment in its key geographic areas;
-- The company cannot maintain its margins amid inflationary
pressures, cannot execute growth initiatives, or carries high
restructuring costs or outstanding debt balances. In such a
scenario, S&P would expect Vibrantz's S&P Global Ratings-adjusted
debt to EBITDA ratio to remain over 8.5x consistently;
-- The company generates persistent negative FOCF such that it
constricts its liquidity and S&P views a financial covenant breach
on the revolving credit facility (RCF) as likely over the next 12
months. The covenant would spring if Vibrantz's borrowings under
the $325 million RCF rise above 35% of the total commitment.
Coupled with weaker-than-expected EBITDA, this might lead to a
tight covenant cushion; or
-- The company pursues shareholder rewards, a debt exchange, or a
repurchase transaction that S&P views as distressed.
S&P could consider a positive rating action, including revising its
outlook on Vibrantz to stable within the next few months, if:
-- There is stronger-than-projected end-market demand, a more
favorable macroeconomic environment, or successful commercial
execution to win new business, supporting strong volume growth in
the company's cyclical end markets;
-- The company continues to improve its S&P Global
Ratings-adjusted EBITDA margins to about 25% or more via a
combination of favorable pricing actions or productivity gains such
that it sustains S&P Global Ratings-adjusted debt to EBITDA
consistently between 7x-8x;
-- The company's cash flow generation improves, leading to a
sustained improvement in its EBITDA interest coverage; and
-- S&P is confident the company's financial policies will support
its maintenance of the aforementioned credit measures.
POWER BLOCK: Creditors' Committee Files Competing Plan
------------------------------------------------------
The Official Committee of Unsecured Creditors submitted a Combined
Chapter 11 Plan and Disclosure Statement for Power Block Coin,
L.L.C., d/b/a SmartFi dated January 30, 2025.
The Debtor is a Utah limited liability company that provided
crypto-based financial services, which historically have included
cryptocurrency exchange, savings, crypto-based lending, crypto
information, token creation and offering, alternative currencies,
and cryptocurrency investment.
The Debtor asserts that it operated a platform for its clients
through its website portal at (smartfi.com). The Debtor also
asserts that it generated revenue through interest on loans
denominated in dollars and cryptocurrencies, trading and hedging,
and fees assessed on certain transactions on its platform. The
Debtor states that it has more recently diversified into more
traditional lending, including lending on real estate development
and other types of financial services.
In order to facilitate an orderly and equitable resolution for all
creditors, the Debtor's assets and operations would be placed into
a Liquidating Trust. A disinterested, qualified trustee will be
engaged, selected in accordance with the Plan, and will serve in a
fiduciary capacity to protect the interests of all creditors while
maximizing recoveries.
The Liquidating Trustee will have the right to operate the Debtor's
business and to pursue all causes of action held by the Debtor,
including all claims available under Ch. 5 of the Bankruptcy Code,
all analogous state law claims, avoidance claims, claims against
insiders (actual fraud, gross negligence, willful misconduct,
violation of fiduciary duties, etc.), and claims for substantive
consolidation. Additionally, the Liquidating Trustee may settle any
and all claims held by the Debtor against third parties, including
Insiders.
All Administrative Expense Claims and Priority Claims will be paid
in full. All Holders of General Unsecured Claims and Subordinated
Claims will receive their pro rata distributions from the
Liquidating Trust when such proceeds become available, after all
costs of administration of the Liquidating Trust, including
Liquidating Trust Expenses, are paid until no further proceeds are
available. The existing Equity Interests of the Debtor shall be
cancelled.
The Liquidating Trustee will be vested with all Retained Assets and
have full authority to liquidate or operate the business of the
Debtor, thus succeeding to all rights, claims, and interests of the
Debtor. The Liquidating Trustee shall have no obligation to pay any
expenses of the Debtor incurred after the Effective Date and no
such expenses shall be paid by the Retained Assets, including
post-Effective Date expenses of the Debtor's counsel and
professionals.
The Committee has continued to negotiate with the Debtor and the
Debtor Affiliates. During the pendency of this proposed Plan, the
Committee will continue to have ongoing discussions with the Debtor
and the Debtor Affiliates regarding the Solara Note and other
estate assets to see if a settlement can be reached as to these
assets that the Committee believes is in the best interest of
creditors.
Class 3 consists of all General Unsecured Claims and Claims arising
from agreements that were (a) Secured prior to the Petition Date
but not properly perfected, or (b) unperfected as of the Petition
Date. Holders of Allowed General Unsecured Claims will receive
their Pro Rata distributions from the Liquidating Trust when such
proceeds become available, after all costs of administration of the
Liquidating Trust and Classes 1 and 2 are paid in full, until no
further proceeds are available. Class 3 is impaired.
Class 5 consists of Equity Interest Holders. On the Effective Date,
the existing Equity Interest will be cancelled. Class 5 is impaired
and conclusively deemed to reject.
The Plan's objective is to transfer all Retained Assets, including
the Retained Causes of Action, to the Liquidating Trust. The
Liquidating Trustee will administer the Liquidating Trust and
liquidate such Retained Assets, including the resolution of any
Retained Causes of Action. The Plan divides Holders of Claims and
Equity Interests into unclassified Claims and Classes of Claims and
Equity Interests based on the Holders' legal rights and interests,
and the Liquidating Trustee will distribute the proceeds of the
Retained Assets to Holders of Allowed Claims in satisfaction of the
Debtor's obligations under this Plan. Holders of Equity Interests
will not receive or retain anything on account of their Equity
Interests.
To the extent that the Committee determines that funding for the
Plan is necessary prior to the Effective Date, the Committee may
vote to allow any party to provide such funding, including any
member of the Committee.
A full-text copy of the Combined Plan and Disclosure Statement
dated January 30, 2025 is available at
https://urlcurt.com/u?l=gSM2Uy from PacerMonitor.com at no charge.
Counsel for the Official Committee of Unsecured Creditors:
Annette W. Jarvis, Esq.
Michael F. Thomson, Esq.
Carson Heninger, Esq.
Abigail J. Stone, Esq.
GREENBERG TRAURIG, LLP
222 South Main Street, Suite 1730
Salt Lake City, UT 84101
Telephone: (801) 478-6900
Email: jarvisa@gtlaw.com
thomsonm@gtlaw.com
carson.heninger@gtlaw.com
abigail.stone@gtlaw.com
About Power Block Coin, L.L.C.
Power Block Coin, LLC, a company in Orem, Utah, conducts business
as SmartFi. SmartFi is a unique monetary system, which combines
monetary policy with the freedoms of cryptocurrency to create a
self-sustaining open-lending platform, providing the holders of
SmartFi Token the opportunity to manage the system and become the
beneficiaries of the wealth creation that would otherwise accrue to
traditional banks.
Power Block Coin filed its voluntary petition for Chapter 11
protection (Bankr. D. Utah Case No. 24-23041) on June 20, 2024,
listing $10 million to $50 million in assets and $1 million to $10
million in liabilities. Aaron Tilton, officer, signed the
petition.
Judge Joel T Marker oversees the case.
The Debtor tapped Parsons Behle & Latimer as legal counsel and CFO
Solutions L.L.C., a Utah limited liability company, as accountant
and financial advisor.
RAPID DRY: Gets Extension to Access Cash Collateral
---------------------------------------------------
The U.S. Bankruptcy Court for the Western District of New York
extended Rapid Dry, Inc.'s authority to use its secured creditors'
cash collateral.
The order signed by Judge Carl Bucki approved the use of cash
collateral to pay the company's expenses for the period from Feb. 3
to 28.
Secured creditors, Canandaigua National Bank and the U.S. Small
Business Administration, were granted roll-over or replacement
liens to the same extent and with the same priority as their
pre-bankruptcy liens.
As additional protection, Canandaigua National Bank will receive
monthly cash payments of $3,055.71.
The final hearing is scheduled for Feb. 24.
About Rapid Dry Inc.
Rapid Dry Inc., doing business as IRock Plumbing, offers 24/7 water
damage restoration, cleanup, and dehumidification services.
Rapid Dry sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D.N.Y. Case No. 25-10009) on January 6, 2025. In its
petition, Rapid Dry reported assets of up to $50,000 and
liabilities of between $1 million and $10 million.
Judge Carl L. Bucki oversees the case.
The Debtor is represented by Arthur G Baumeister, Jr., Esq., at
Baumeister Denz, LLP.
Canandaigua National Bank, as secured creditor, is represented by:
David M. Tang, Esq.
Underberg & Kessler, LLP
300 Bausch & Lomb Place
Rochester, NY 14604
Telephone: (585) 258-2800
Email: dtang@underbergkessler.com
REDFIN CORP: Plans to Revamp Rental Division, Cut 450 Jobs
----------------------------------------------------------
Hari Govind of Bloomberg News reports that Redfin is overhauling
its rentals segment, planning to eliminate about 450 jobs as it
partners with Zillow Group Inc. for rental listings.
According to a regulatory filing, the restructuring will result in
charges ranging from $18 million to $21 million. Redfin expects to
record most of these costs by the end of the second quarter and
complete the process by September.
On February 11, 2025, Redfin and Zillow announced that Zillow will
become the exclusive provider of rental listings on Redfin's
platforms, the report related.
About Redfin Corp.
Redfin Corp. provides residential real estate brokerage and
mortgage origination services.
REITER BROTHERS: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Reiter Brothers Inc., according to court dockets.
About Reiter Brothers Inc.
Reiter Brothers Inc. is a Hollywood, Florida-based furniture
manufacturer operating as Vannucchi Brothers.
Reiter Brothers filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10190) on January
9, 2025, with $50,000 to $100,000 in assets and $500,000 to $1
million in liabilities. Tarek Kiem, Esq., at Kiem Law, PLLC serves
as Subchapter V trustee.
Judge Scott M. Grossman oversees the case.
The Debtor is represented by Robert A. Stiberman, Esq., at
Stiberman Law, P.A.
RIVER DREAMERS: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The U.S. Trustee for Region 14 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of River Dreamers RV Park, LLC.
About River Dreamers RV Park
River Dreamers RV Park, LLC operates a recreational vehicle park
and campground facility along the Colorado River in Ehrenberg,
Ariz.
River Dreamers RV Park sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 25-00303) on January 14,
2025. In its petition, the Debtor reported between $1 million and
$10 million in both assets and liabilities.
Judge Scott H. Gan handles the case.
The Debtor is represented by Mark J. Giunta, Esq., at the Law
Office of Mark J. Giunta, in Phoenix, Ariz.
ROGERS COMMUNICATIONS: Moody's Rates New Subordinated Notes 'Ba1'
-----------------------------------------------------------------
Moody's Ratings affirmed Rogers Communications Inc.'s Baa3 senior
unsecured/backed senior unsecured notes ratings, Ba2 ratings on its
existing subordinated notes and its Prime-3 commercial paper
rating, and assigned Ba1 ratings to the company's proposed Canadian
and US subordinated notes. The outlook remains stable.
Rogers plans to use the proceeds from the subordinated notes
issuances to repay debt and/or fund a portion of the purchase of
BCE Inc.'s 37.5% stake in Maple Leaf Sports and Entertainment Inc.
"The affirmation of the ratings considers that Rogers will continue
to explore avenues to reduce financial leverage below 4x by the end
of 2025 including using free cash flow to repay debt and pursuing
asset sales", said Peter Adu, Moody's Ratings analyst.
RATINGS RATIONALE
Rogers' Baa3 senior unsecured rating benefits from: (1) a strong
business profile supported by its position as Canada's second
largest telecommunications service provider, measured by revenue,
together with enhanced diversity of its wireline footprint
following the Shaw acquisition; (2) a good track record of
execution, including prudent network investments; (3) a
conservative dividend policy, which allows for modest free cash
flow generation relative to peers; (4) positive revenue growth
expectations through 2026 with strong EBITDA margins; and (5)
rational, oligopolistic competition, supported by a regulatory
framework that favors facilities-based competition and restricts
foreign ownership. The rating is constrained by: (1) Debt/EBITDA
above 4.5x while there is risk in growing EBITDA and reducing the
ratio below 4x by the end of 2025; (2) competitive pressures from
large peers and regional players; (3) ongoing need to balance cash
flow amongst network investments, spectrum purchases, and dividend
payments, which limit the pace of deleveraging; and (4) governance
concerns around family control and lack of board independence.
Rogers will have three classes of debt when the proposed
subordinated notes issuances close - (1) Baa3-rated senior
unsecured/backed senior unsecured notes; (2) Ba1-rated proposed
subordinated notes, and (3) Ba2-rated existing subordinated notes.
In Moody's view, the existing and proposed subordinated notes have
equity-like features which allow them to receive basket "M"
treatment (i.e. 50% equity and 50% debt) for the calculation of
credit metrics. Please refer to Moody's Cross-Sector Rating
Methodology "Hybrid Equity Credit methodology", published in
February 2024, for further details. However, upon occurrence of
certain events, including bankruptcy, the proposed subordinated
notes will have a subordinated debt claim against Rogers while the
existing subordinated notes have an automatic conversion to
preferred shares. This implies that the existing subordinated note
holders will have a preferred share claim against Rogers instead of
a subordinated debt claim. Hence the one notch difference in the
ratings.
Rogers has very good liquidity through January 31, 2026, with
sources approximating C$5.8 billion while it has about C$3.7
billion of debt maturities. Liquidity is supported by cash of C$898
million at December 31, 2024, Moody's free cash flow estimate of at
least C$1 billion, C$3.5 billion of availability (net of commercial
paper outstanding and letters of credit) under its C$4 billion
multi-year revolving credit facilities (C$1 billion expires in
April 2027 and C$3 billion expires in April 2029), and C$400
million of availability under its C$2.4 billion accounts receivable
securitization program that expires in June 2027. Rogers' C$4
billion revolving credit facilities backstop its commercial paper
issuance (C$455 million outstanding at December 31, 2024). The
facilities provides for same day availability of funding and there
are no material adverse change provisions. Moody's expect Rogers to
maintain ample headroom under financial covenants through the next
12 months.
The outlook is stable because Moody's expect the company to
continue to invest in its network to enhance its competitive
position while expanding EBITDA and free cash flow, and repaying
debt such that it will strive to reduce Debt/EBITDA below 4x by the
end of 2025 to sustain the ratings.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Rogers' operating fundamentals
continue to improve, including growth in subscribers, revenue and
EBITDA, while sustaining Debt/EBITDA below 3.5x and FCF/TD above
10%.
The ratings could be downgraded if Rogers' ability to sufficiently
monetize its spectrum assets and execute its growth strategy were
challenged or financial policies continue to tolerate high
financial leverage such that Moody's expect Debt/EBITDA to be
sustained above 4x and FCF/TD below 0% for an extended period.
The principal methodology used in these ratings was
Telecommunications Service Providers published in November 2023.
Headquartered in Toronto, Ontario, Canada, Rogers Communications
Inc. is a telecommunications service provider that operates in
three segments: Wireline (Cable), Wireless and Media.
RONTAN ELETRO: Chapter 15 Case Summary
--------------------------------------
Two affiliates that simultaneously filed voluntary petitions for
relief under Chapter 15 of the Bankruptcy Code under case number
25-11421:
Debtor
------
Rontan Eletro Metalurgica Ltda.
Rodovia Antonio Romano Schincariol,
s/n, SP127 Km 114,5
Tatui, Sao Paulo, SP CEP 18278-725
Brazil
Rontan Telecom Comercio De Telecomunicacoes Ltda.
Rua Tripole, 64,
Vila Leopoldina, Sao Paulo, SP CEP 05303-020
Brazil
Business Description: Rontan Eletro Metalurgica Ltda., established
in 1970, is a Brazilian company specializing
in the manufacture and supply of safety
equipment, signaling systems, and vehicle
adaptations for small and medium-sized
businesses. Their product includes
acoustic and visual signaling devices, as
well as truck bodies.
Rontan Telecom Comercio de Telecomunicacoes
Ltda., is primarily engaged in the wholesale
trade of electronic components.
Additionally, Rontan Telecom offers repair
services for cell phones and accessories.
Chapter 15 Petition Date: February 11, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Foreign Representative: Campi Servicos Empresariais Ltda.
No. 238, Rua Ministro Gastao Mesquita
Sao Paulo SP
Signed by Ana Cristina Baptista
Campi, as representative of the
Foreign Representative
Foreign Proceeding: Bankruptcy Liquidation pending
before the 3rd Civil Court of the
Judicial District of Tatui/Sao
Paulo, Brazil
Foreign Representative's
Counsel: Nyana A. Miller, Esq.
SEQUOR LAW
1111 Brickell Avenue
Suite 1250
Miami Florida 33131
Tel: (305) 372-8282
Email: nmiller@sequorlaw.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 petition is available for free
on PacerMonitor at:
https://www.pacermonitor.com/view/75OCOPY/RONTAN_TELECOM_COMRCIO_DE_TELECOMUNICAES__flsbke-25-11421__0001.0.pdf?mcid=tGE4TAMA
ROSA COPLON: Files Chapter 11 Bankruptcy in New York
----------------------------------------------------
On February 7, 2025, Rosa Coplon Jewish Home & Infirmary filed
Chapter 11 protection in the U.S. Bankruptcy Court for the Western
District of New York.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Rosa Coplon Jewish Home & Infirmary
Rosa Coplon Jewish Home & Infirmary manages and runs a nursing care
facility.
Rosa Coplon Jewish Home & Infirmary sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D.N.Y. Case No. 25-10132)
on February 7, 2025. In its petition, the Debtor reports estimated
assets up to $50,000 and estimated liabilities between $1 million
and $10 million.
Honorable Bankruptcy Judge Carl L. Bucki handles the case.
The Debtor is represented by:
Kevin R. Lelonek, Esq.
GROSS SHUMAN PC
465 Main St Suite 600
Buffalo, NY 14203
Tel: (716) 854-4300
E-mail: klelonek@gross-shuman.com
ROTI RESTAURANTS: To Sell Catering Van to Broadpeak
---------------------------------------------------
Roti Restaurants LLC and its affiliates, seek permission from the
U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, at a hearing on February 18, 2025, at 9:30 A.M.,
in a sixth supplemental motion to sell Catering Van.
The Debtors operates fast-casual Mediterranean restaurants under
the names Roti Modern Mediterranean, Roti Mediterranean Grill, Roti
Bowls. Salads. Pitas., and Roti.
The Debtors and Broadpeak have reached agreement for the sale of
the Chevrolet City Express previously used as the Debtors' catering
van (Catering Van) for $6,000. That amount is the approximate
There was a lien on the Catering Van of $3,134.93 based on a
vehicle finance loan from GM Financial of $11,722.51 made to
Debtors. Because the remaining payoff amount was low, and GM
Financial was entitled to any Catering Van sale proceeds up to the
amount of its loan balance, the Debtors paid the balance of the
loan and seek Court approval to convey the Catering Van for $6,000,
resulting in net proceeds to the estate of $2,865.07.
The Debtor believes that its purchase agreement with Broadpeak is
reasonable and should be accepted and approved. By selling the
Catering Van directly to Broadpeak, the Debtors can save costs of
commission and believes that the Vehicle Sale is in the best
interests of the estate.
Roti Restaurants LLC
Roti Restaurants own and operate fast-casual restaurants offering
Mediterranean menu with house-made meats, crisp vegetables, and
flavor-forward sauces.
Roti Restaurants, LLC, and its affiliates concurrently filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ill. Case No. 24-12410) on Aug. 23, 2024. The
petitions were signed by Justin Seamonds as manager. At the time of
filing, Roti Restaurants, LLC estimated $50,000 in assets and $1
million to $10 million in liabilities.
Judge Donald R. Cassling presides over the case.
Michael P. Richman, Esq. at RICHMAN & RICHMAN LLC represents the
Debtors as counsel. The Debtors hired Ravinia Capital LLC, led by
Thomas Goldblatt, as their investment banker.
The U.S. Trustee for Region 11 appointed Ira Bodenstein as
Subchapter V trustee for Roti Restaurants.
SAM'S CRAB: Gets Interim OK to Use Cash Collateral Until Feb. 26
----------------------------------------------------------------
Sam's Crab House, LLC received interim approval from the U.S.
Bankruptcy Court for the Eastern District of Virginia to use cash
collateral until Feb. 26.
The interim order signed by Judge Keith Phillips authorized the
company to use the cash collateral of Ameris Bank, doing business
as Balboa Capital, to pay the expenses set forth in its budget.
As protection for the use of its cash collateral, Ameris Bank will
receive a monthly payment of $2,000 monthly.
A final hearing is scheduled for Feb. 26.
About Sam's Crab House
Sam's Crab House, LLC is a restaurant operator based in Richmond,
Va.
Sam's Crab House filed Chapter 11 petition (Bankr. E.D. Va. Case
No. 25-30071) on January 9, 2025. In its petition, the Debtor
reported assets between $50,000 and $100,000 and liabilities
between $100,000 and $500,000.
Judge Keith L. Phillips oversees the case.
The Debtor is represented by Kimberly Ann Kalisz, Esq., at Conway
Law Group, PC.
Ameris Bank, as secured creditor, is represented by:
Pierce C. Murphy, Esq.
Silverman Thompson Slutkin & White, LLC
400 East Pratt Street, Suite 900
Baltimore, MD 21202
(410)-385-2225
(410)-547-2432 (facsimile)
pmurphy@silvermanthompson.com
SOLDIER OPERATING: Seeks to Extend Plan Filing Deadline to Feb. 28
------------------------------------------------------------------
Soldier Operating, LLC, and Viceroy Petroleum, LP, asked the U.S.
Bankruptcy Court for the Western District of Louisiana to extend
its period to file a chapter 11 plan of reorganization and
disclosure statement to February 28, 2025.
The Debtors explain that there have been numerous developments in
these cases during the last six weeks. In January 2025, the Debtors
opened the floor to bids for the Debtors' oil and gas assets and
operations in Cote Blanche Island, Louisiana, through a sale
process approved by this Court. The terms of the winning bid
substantially affect the Debtors' present oil and gas assets in
Louisiana and Soldier's role as operator of those assets.
Further, the Debtors' oil and gas counsel have continued to
actively review and modify assumptions related to alleged LOWLA
liens, which evolve due to the actions that claimants take or fail
to take with respect to those alleged liens by the applicable
deadlines unique to each claimant. The categorization of the
alleged liens affects the projections and estimated recoveries
being set forth in the plan.
Additionally, for more than a month, Viceroy has been in
discussions with potential buyers of its Texas mineral assets.
Notably, Viceroy was approached by interested potential buyers with
no real marketing of these assets. Given the unexpected
opportunities being presented and value to the estate, this Debtor
will shortly file one or more motions to sell these assets through
a bid process that is similar to the process that was used, with
efficiency and success, to sell the Louisiana assets.
The Debtors claim that the plan is being developed with the input
of the unsecured creditors' committee, who have also been kept
apprised of the foregoing developments.
The Debtors submit that the requested extension will increase the
likelihood of a successful joint plan of reorganization that
maximizes the reorganization value, such that the requested
extension is warranted and appropriate under the circumstances.
Counsel to the Debtors:
Bradley L. Drell, Esq.
Heather M. Mathews, Esq.
Gold Weems Bruser Sues & Rundell, APLC
P.O. Box 6118
Alexandria, LA 71307-6118
Tel: (318) 445-6471
Fax: (318) 445-6476
Email: bdrell@goldweems.com
About Soldier Operating
Soldier Operating, LLC and Viceroy Petroleum, LP filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. W.D. La. Lead Case No. 24-50387) on May 13, 2024. In the
petitions signed by Matthew Ferguson, president, Soldier Operating
disclosed $5,615,631 in assets and $6,089,722 in liabilities.
Judge John W. Kolwe presides over the cases.
Bradley L. Drell, Esq., at Gold, Weems, Bruser, Sues & Rundell,
APLC, is the Debtors' counsel.
The U.S. Trustee appointed an official committee of unsecured
creditors in the Chapter 11 cases. The committee tapped H. Kent
Aguillard, Esq., and Caleb K. Aguillard, Esq., and Stewart Robbins
Brown & Altazan, LLC as co-counsel.
SOUTHERN COLONEL: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Southern Colonel Homes, Inc.
7390 US Highway 49 North
Hattiesburg, MS 39402
Chapter 11 Petition Date: February 10, 2025
Court: United States Bankruptcy Court
Southern District of Mississippi
Case No.: 25-50179
Judge: Hon. Katharine M Samson
Debtor's Counsel: Craig M. Geno, Esq.
LAW OFFICES OF GRAIG M. GENO, PLLC
601 Renaissance Way, Suite A
Ridgeland, MS 39157
Tel: 601-427-0048
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Randa Campbell-Pittman 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/SZF6TQY/Southern_Colonel_Homes_Inc__mssbke-25-50179__0001.0.pdf?mcid=tGE4TAMA
SPEARMAN AEROSPACE: Sec. 341(a) Meeting of Creditors on March 4
---------------------------------------------------------------
On February 6, 2025, Spearman Aerospace Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Central District
of California.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on March 4,
2025 at 10:00 AM at UST-LA3, TELEPHONIC MEETING. CONFERENCE
LINE:1-866-811-2961, PARTICIPANT CODE:9609127.
About Spearman Aerospace Inc.
Spearman Aerospace Inc. manufactures high-precision components for
the aerospace industry, specializing in parts for landing gear
assemblies, door pivots, and gearboxes. They utilize advanced CNC
technology to produce these components for satellite/space
applications and other aerospace needs.
Spearman Aerospace Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10917) on February
6, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Deborah J. Saltzman handles the case.
The Debtor is represented by:
M. Douglas Flahaut, Esq.
ECHO PARK LEGAL, APC
2210 Sunset Blvd. 301
Los Angeles, CA 90026
Tel: 310-709-0658
E-mail: df@echoparklegal.com
SPIRIT AIRLINES: Declines Another Offer From Frontier
-----------------------------------------------------
Danny Lee of Bloomberg Law reports that Spirit Airlines Inc. has
turned down a revised takeover offer from Frontier Group Holdings
Inc., choosing to move forward with its recapitalization plans.
In a statement, Spirit said Frontier submitted the updated proposal
on February 4, 2025.
Frontier has been seeking to revive its bid for Spirit, as both
airlines are major players in the U.S. ultra-low-cost carrier
market, according to the report. The two initially agreed to merge
in 2022, but the deal was derailed when JetBlue Airways Corp. made
a higher offer, the report states.
About Spirit Airlines
Spirit Airlines, Inc. (SAVE) is a low-fare carrier committed to
delivering the best value in the sky by offering an enhanced travel
experience with flexible, affordable options. Spirit serves
destinations throughout the United States, Latin America and the
Caribbean with its Fit Fleet, one of the youngest and most
fuel-efficient fleets in the U.S. On the Web:
http://wwww.spirit.com/
Spirit Airlines and its affiliates sought Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 24-11988) on Nov. 18, 2024, after
reaching terms of a pre-arranged plan with bondholders. At the time
of the filing, Spirit Airlines reported $1 billion to $10 billion
in both assets and liabilities. Judge Sean H. Lane oversees the
case.
The Debtors tapped Davis Polk & Wardwell, LLP as legal counsel;
Alvarez & Marsal North America, LLC, as financial advisor; and
Perella Weinberg Partners LP as investment banker. Epiq Corporate
Restructuring, LLC, is the claims agent.
Paul Hastings, LLP and Ducera Partners, LLC serve as legal counsel
for the Ad Hoc Group of Convertible Noteholders.
Akin Gump Strauss Hauer & Feld, LLP and Evercore Group LLC
represent the Ad Hoc Group of Senior Secured Noteholders.
The official committee of unsecured creditors retained Willkie Farr
& Gallagher LLP as counsel.
Citigroup Global Markets, Inc., is serving as financial advisor and
Latham & Watkins LLP is serving as legal counsel to Frontier.
SRZ MASTER TENANT: Sec. 341(a) Meeting of Creditors on March 10
---------------------------------------------------------------
On February 6, 2025, SRZ Master Tenant LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of New York.
According to court filing, the Debtor reports between $500,000
and $1 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under Section 341(a) meeting to be held on
March 10, 2025 at 02:00 PM at Telephonic Meeting: Phone 1 (877)
960-2850, Participant Code 5942427# sign.
About SRZ Master Tenant LLC
SRZ Master Tenant LLC is a Delaware-based holding company that
previously held leases, as a tenant, with CR Aviv, LLC, Missouri
Regency Associates, LLC, and FC Encore Properties B Holdco, LLC.
The Debtor subleased these facilities to affiliate entities for
operation while managing related receivables. The Debtor is
indirectly owned by Goldner Capital Management LLC, an investment
firm focused on post-acute healthcare.
SRZ Master Tenant LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-70504) on February 6,
2025. In its petition, the Debtor reports estimated assets between
$50 million and $100 million and estimated liabilities between
$500,000 and $1 million.
Honorable Bankruptcy Judge Alan S. Trust handles the case.
The Debtor is represented by:
Gary F. Herbst, Esq.
LAMONICA HERBST & MANISCALCO, LLP
3305 Jerusalem Avenue, Suite 201
Wantagh, NY 11793
Tel: 516-826-6500
E-mail: gfh@lhmlawfirm.com
STICKY'S HOLDINGS: Wants to Convert Chapter 11 to Chapter 7
-----------------------------------------------------------
James Nani of Bloomberg Law reports that the operator of New
York-area restaurant chain Sticky's Finger Joint is seeking to
convert its bankruptcy reorganization into a liquidation, blaming
financial struggles on a harsh December cold snap and New York
City's congestion pricing plan.
In a motion filed Monday, February 10, 2024, in the U.S. Bankruptcy
Court for the District of Delaware, Sticky's Holdings LLC requested
to shift its Chapter 11 case to Chapter 7, citing insufficient cash
flow to cover bankruptcy costs or fulfill creditor payments. The
company also noted its inability to secure additional financing.
About Sticky's Holdings
Sticky's Holdings LLC and its affiliates operate a chain of
restaurants in New York and New Jersey.
The Debtors filed Chapter 11 petitions (Bankr. D. Del. Lead Case
No. 24-10856) on April 25, 2024. In the petitions signed by Jamie
Greer, CEO, Sticky's Holdings disclosed $5,754,177 in total assets
and $4,677,476 in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped John W. Weiss, Esq., at Pashman Stein Walder
Hayden, PC as legal counsel and Kurtzman Carson Consultants LLC as
administrative advisor.
STONEX GROUP: Moody's Affirms 'Ba3' Issuer & Secured Notes Rating
-----------------------------------------------------------------
Moody's Ratings affirmed the Ba3 long-term issuer and senior
secured notes ratings of StoneX Group Inc. The outlook remains
stable.
RATINGS RATIONALE
The rating affirmation reflects StoneX's franchises in a range of
specialized financial services functions, including commercial
hedging and risk management advisory, commodities trading, clearing
and execution, securities market making and global payments. The
firm's credit profile benefits from a diversified business mix,
consistent earnings generation, and favorable regulatory and market
trends.
StoneX management is strongly focused on growth which introduces
creditor risks as the firm has expanded the geographic scale and
scope of its operations – organically and through acquisition.
StoneX manages and controls market and credit risk through a
comprehensive set of internal risk limits. Nevertheless, the
increasing volume of StoneX's transactions potentially exposes it
to an elevated level of operational and counterparty risks that
could result in unexpected losses in the event of a risk management
failure.
StoneX reported $85 million in net income in Q1 2025, a 23%
year-over-year increase supported by improved earnings in the
Commercial, Institutional and Self-Directed retail segments that
offset a modest drop in earnings within the Payments segment.
StoneX's outlook is stable, based on Moody's expectation that the
firm will continue to generate diversified net operating revenue
while maintaining strong liquidity and a conservative approach to
risk management.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Increasing profitability and scale resulting in significantly
improved pretax earnings and related margins on a sustained basis
could lead to an upgrade. Demonstration of a sound evolution in
management oversight, controls, and risk management commensurate
with the firm's growth, combined with a reduction in holding
company double leverage and improved liquidity, could also put
upward pressure on StoneX's ratings.
StoneX's ratings could be downgraded were there to be a decline in
its liquidity of its balance sheet or at its holding company or
with evidence that management oversight, controls and risk
management are not keeping pace with growth. A weakening in its
funding profile through the reliance on short-term funding can also
put downward pressure on the rating. A change in financial policy
further towards shareholder interests via dividend payments or more
share repurchases could also result in a downgrade.
The principal methodology used in these ratings was Securities
Industry Market Makers published in June 2024.
SUGARHOUSE HSP: S&P Raises ICR to 'B+' Then Withdraws Rating
------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on
Philadelphia-based gaming operator Sugarhouse HSP Gaming Prop.
Mezz. L.P. to 'B+' from 'B-', the same as parent Rivers Enterprise
Borrower, because S&P views Sugarhouse as core to its parent. S&P
subsequently withdrew the issuer credit rating on Sugarhouse.
S&P said, "We also withdrew our ratings on Sugarhouse's senior
secured notes. Rivers used a portion of the proceeds from its
recent debt raise to redeem Sugarhouse's notes.
"We raised issuer credit rating on Sugarhouse to 'B+' from 'B-'
(the same as Rivers) because we view Sugarhouse as core to its
parent. We subsequently withdrew the issuer credit rating on
Sugarhouse. The outlook was stable at the time of the withdrawal.
In addition, we also withdrew our ratings on Sugarhouse's senior
secured notes following the company's redemption of the notes."
Sugarhouse was consolidated into Rivers Enterprise Borrower in
conjunction with Rivers' financing transaction.
Rivers consolidated its ownership of Rivers Philadelphia, Rivers
Schenectady, and Rivers Portsmouth into a single entity in
conjunction with its financing transaction that closed on Feb. 6,
2025. Rivers used proceeds from the financing to repay or redeem
debt at each property, including all the debt at Sugarhouse, the
entity that owns and operates Rivers Philadelphia. S&P said, "The
Rivers Philadelphia Casino generates meaningful EBITDA, provides
strategic geographic diversity, and is part of the Rivers' loyalty
program; therefore we view it as integral to Rivers' identity and
strategy and we believe that the rest of the group would likely
support Sugarhouse under any foreseeable circumstance. Therefore,
we viewed Sugarhouse as core to its parent and assigned it the same
issuer credit rating."
SUGARLOAF VENTURES: Unsecureds Will Get 100% of Claims in Plan
--------------------------------------------------------------
Sugarloaf Ventures LP filed with the U.S. Bankruptcy Court for the
Northern District of California a Combined Chapter 11 Plan of
Reorganization and Disclosure Statement dated January 30, 2025.
The Debtor was formed in Delaware on or about April 1, 2015. It
filed an application for registration in the State of California on
April 13, 2015.
The Debtor acquired a majority interest in the Real Property in
2016. It built a custom crush and winery building after the Real
Property was acquired. The building was completed in 2018. Tenant
Sugarloaf Operations, LLC, wholly owned by Debtor, owns and
operates a custom crush business on the Real Property. Tenant's
lease obligations include the obligation to pay the debts secured
by liens on the Real Property.
The Debtor's tenant was unable to pay debts secured by the Real
Property. Debtor defaulted on its obligations to secured creditor
Poppy Bank. Debtor commenced this case on November 1, 2024. It did
so because Poppy Bank was about to complete a nonjudicial
foreclosure sale of the Real Property.
The Debtor has no ongoing business: the business being conducted on
the Property is owned an operated by Sugarloaf Operations, LLC, an
entity owned by Debtor. Debtor does not project it will have income
between the Effective Date and the date of consummation of the
Plan.
Class 2(a) consists of General Unsecured Claims. The allowed
unsecured claims total $871,072.91. Creditors will receive a
pro-rata share of the net proceeds, if any, from the sale of
Debtor's assets, after payment of secured claims, priority claims,
and administrative claims, up to 100% of their allowed claims) in
one payment no more than 12 months after the Effective Date. This
class is impaired.
Class 5 consists of all holders of partnership interests in the
Debtor. The members of Class 5 will receive their pro rata portion
of the residue of the Debtor's assets, after payments in full to
all creditors, distributed based upon the percentage units held by
the Class 5 members. The distribution will be made within 30
business days after the Debtor closes the sale of the last of its
assets. Class 5 is impaired under the Plan.
On the Effective Date, all property of the estate and interests of
the Debtor will vest in the reorganized Debtor pursuant to Section
1141(b) of the Bankruptcy Code free and clear of all claims and
interests except as provided in this Plan.
Except as provided in Part 6(d) and (e), the obligations to
creditors that Debtor undertakes in the confirmed Plan replace
those obligations to creditors that existed prior to the Effective
Date of the Plan. Debtor's obligations under the confirmed Plan
constitute binding contractual promises that, if not satisfied
through performance of the Plan, create a basis for an action for
breach of contract under California law. To the extent a creditor
retains a lien under the Plan, that creditor retains all rights
provided by such lien under applicable non-Bankruptcy law.
A full-text copy of the Combined Plan and Disclosure Statement
dated January 30, 2025 is available at
https://urlcurt.com/u?l=TMekyG from PacerMonitor.com at no charge.
Counsel to the Debtor:
Steven M. Olson, Esq.
Bluestone Faircloth & Olson, LLP
1825 4th Street
Santa Rosa, CA 95404
Telephone: (707) 526-4250
Facsimile: (707) 526-0347
Email: steve@bfolegal.com
About Sugarloaf Ventures LP
Sugarloaf Ventures LP is the parent company of Sugarloaf Wine Co.
Sugarloaf Ventures LP sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-10673) on November 1,
2024. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge William J. Lafferty handles the case.
The Debtor is represented by Steven M. Olson, Esq. at Bluestone
Faircloth & Olson, LLP.
SULLIVANS DISTRIBUTIONS: Voluntary Chapter 11 Case Summary
----------------------------------------------------------
Debtor: Sullivans Distributions, Inc.
83 Old Roosa Gap Road
Bloomingburg, NY 12721
Chapter 11 Petition Date: February 10, 2025
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 25-35149
Judge: Hon. Kyu Young Paek
Debtor's Counsel: Edward N. Gewirtz, Esq.
BRONSTEIN, GEWIRTZ & GROSSMAN LLC
60 East 42nd Street
New York NY 10165
Tel: 973-634-3176
E-mail: chona@bgandg.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Joel Fleischman 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/PP47S2A/Sullivans_Distributions_Inc__nysbke-25-35149__0001.0.pdf?mcid=tGE4TAMA
SVP HOLDINGS: S&P Upgrades ICR to 'B' on Merger Close
-----------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Birmingham,
Ala.-based veterinary practice management company SVP Holdings LLC
(d/b/a Southern Veterinary Partners [SVP]) to 'B' from 'B-' and
removed it from CreditWatch, where S&P placed it with positive
implications on Oct. 21, 2024.
S&P said, "At the same time, we assigned 'B' issue-level ratings to
its new senior secured revolving credit facility and term loan with
a recovery rating of '3' and a rounded recovery estimate of 50%.
"The stable outlook reflects our expectation for SVP to continue to
generate solid levels of growth despite near-term industry volume
headwinds while maintaining a stable margin profile. The stable
outlook also reflects our expectation for S&P Global
Ratings-adjusted leverage to be in the low-6x area in 2025,
improving as industry headwinds abate and interest rates trend down
over time.
"The merger significantly expands SVP's scale and diversification,
improving our view of the creditworthiness of the combined
business. We believe the merger improves SVP's scale and
diversification across the U.S., offering procurement and other
practice process efficiencies, potentially benefiting visit
volumes, throughput, quality of care, and relationships with pet
owners. Individually, SVP and MVP have been able to sustain hiring
and retention trends above industry averages, highlighting a focus
on doctor training and development, strong relationships with
veterinary schools, and equity compensation, all of which we expect
to continue as a combined company. The combined company operates in
41 states compared with 24 previously, reducing geographic
concentration.
"The accompanying recapitalization improves our opinion of SVP's
credit metrics. We anticipate its S&P Global Ratings-adjusted
leverage will remain high given that the combined company will
likely continue to pursue its merger and acquisition roll-up
strategy, with the majority funded with debt. We expect pro forma
consolidated leverage to be in the low-7x area in 2024, with modest
deleveraging from EBITDA growth to the low-6x area by 2025. This is
an improvement from our prior forecast of mid-9x, primarily due to
the expected synergies of the combination and the conversion of the
vast majority of non-common equity to common, leading us to believe
it is more likely the company will maintain its less aggressive
credit metrics. SVP and MVP, to date, have yet to engage in a pure
leveraging transaction such as a dividend recapitalization and
could have opted to raise leverage higher as part of the merger
transaction, further supporting our view of a modestly more
conservative financial policy. Although the combined company still
has high leverage, we think it will generate significantly positive
free cash flow, enabling SVP to self-fund a solid portion of its
growth ambitions.
"We expect SVP to continue performing well in an industry with
solid long-term fundamentals despite near-term volume challenges.
We forecast SVP will generate consistent top-line growth supported
by organic growth of 6%-7% and continued acquisition activity. We
anticipate visit volumes will likely decline year over year over
the next 12 months but somewhat improve as we go through the year.
We expect the vet industry to return to low-single-digit percent
volume growth in 2026-2027 due to an aging pet population from the
boom of pet adoption during the peak of the COVID-19 pandemic.
"The stable outlook reflects our expectation for SVP to continue to
generate solid organic growth while executing on its acquisition
strategy and maintaining a generally stable margin profile. The
stable outlook also reflects our expectation for leverage to be in
the low-6x area over the next two years with improving metrics and
cash flow as industry headwinds abate and interest rates trend down
over time.
"Over the next 12 months, we could lower the rating on SVP if we
expect its S&P Global Ratings-adjusted EBITDA to approach 8x or its
S&P Global Ratings-adjusted free operating cash flow (FOCF) to debt
falls below 4%. In this scenario, SVP would likely increase its
pace of acquisitions at high multiples, requiring significant
incremental debt financing. The downside scenario could also
include more intense headwinds in the vet space, potentially
limiting SVPs ability to raise prices while also experiences wage
inflation.
"Although unlikely over the next 12 months, we could consider a
higher rating on SVP if the company demonstrates a willingness to
sustain leverage metrics at a more conservative level. In this
case, SVP would need to establish a track record of sustaining S&P
Global Ratings-adjusted debt to EBITDA below 6x while also
demonstrating an improving cash flow profile with S&P Global
Ratings-adjusted FOCF to debt above 7%. In this scenario, we would
expect the company to enact a less-aggressive financial policy
while maintaining solid EBITDA growth prospects."
TURK TRANSPORTATION: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: Turk Transportation, LLC
181 Centennial Drive
Carnegie, PA 15106
Business Description: Turk Transportation, LLC is a fully
operational interstate freight carrier
focused on transporting general freight and
motor vehicles. The Company provides
specialized services, including the
transport of oversized or overweight loads,
perishable goods, delicate items, and heavy
equipment.
Chapter 11 Petition Date: February 11, 2025
Court: United States Bankruptcy Court
Western District of Pennsylvania
Case No.: 25-20336
Debtor's Counsel: Ryan J. Cooney, Esq.
COONEY LAW OFFICES
223 Fourth Ave
Pittsburgh, PA 15222
Tel: (412) 992-7597
E-mail: Rcooney@cooneylawyers.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mehmet Uzun as managing member.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/6U6BQRY/Turk_Transportation_LLC__pawbke-25-20336__0004.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/6AY4FXA/Turk_Transportation_LLC__pawbke-25-20336__0001.0.pdf?mcid=tGE4TAMA
UNIVERSAL HEALTH: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) of Universal Health Services, Inc. (UHS) at 'BB+' and its
senior secured credit facilities and senior secured notes at 'BBB-'
with a Recovery rating of 'RR1'. The Rating Outlook is Stable.
The 'BB+' IDR and Stable Outlook reflect its favorable view of
EBITDA leverage likely trending modestly below Fitch's 2.0x
positive rating sensitivity, reflecting strong demand in its
higher-growth urban markets. Fitch also views UHS's solid liquidity
($1.1 billion as of 9/30/2024 versus only $0.7 billion of debt due
before 2029) and conservative financial policy as supportive
factors. Recent strong performance has been supported by reduced
labor pressures and increased funding from Medicaid. Having said
that, Medicaid funding is now coming under scrutiny by the Trump
administration.
Key Rating Drivers
Margins Rebounding: While EBITDA margin was flat yoy in 2023 at
12.8%, Fitch expects improvement into the mid-teens near term.
UHS's use and cost of temporary labor are down materially, base
wage increases are manageable (especially amid robust revenue
growth) and inflation in outsourced physician expense has
moderated. While healthcare labor shortages are likely to persist,
Fitch believes UHS can manage them better than smaller, non-urban
operators, given both its scale and leverage with payors.
Acute care margins have benefitted from improved volume growth and
commercial mix (from Medicaid redeterminations) and behavioral
health margins have benefitted from new or expanded Medicaid
supplemental funding and negotiated increases in managed Medicaid
rates. While increases in Medicaid payments should benefit UHS at
least through 2025, the Trump administration is eyeing Medicaid
cuts that could be material. While opposition may be fierce, Fitch
plans to monitor future proposals closely.
Conservative Financial Policy: EBITDA leverage has been sustained
below 3.0x since 2012 and is now nearing 2.0x, while UHS has
abstained from large M&A since its U.K. foray in 2014-2016. UHS
thus has meaningful headroom relative to Fitch's negative leverage
sensitivity of 3.0x if EBITDA is pressured by reversals in
operating trends or potential Medicaid cuts. While FCF is likely to
fund share buybacks near term, UHS would likely also adjust its
capital allocation if labor issues or Medicaid cuts were to arise.
Conservative balance sheet management also mitigates refinancing
risk for UHS. Following its capital markets transactions in
September 2024, near-term debt maturity obligations include only
$700 million of 1.650% senior secured notes due 2026 and annual
term loan amortization, with no other debt due until 2029. Fitch
assumes UHS maintains an effective interest rate of about 4.5% over
the rating horizon.
Solid Free Cash Flow: Fitch sees FCF improving within the range of
4.5%-6.0% of revenue through 2027, up from about 3.0% in 2023,
despite Fitch's expectation of high capex at 5.5%-6.0% of revenue
(funding de novo growth investments). Current projects include two
acute care hospitals, one in Florida (150 beds, likely opening in
1H 2026) and one in Washington, D.C. (136 beds, likely opening in
1H 2025), and one joint-ventured behavioral health hospital in
Michigan (96 beds, likely opening in 1H 2025).
Derivation Summary
The 'BB+' Issuer Default Rating reflects UHS's competitive position
as one of the largest for-profit health systems in the U.S. and its
strong financial profile with low leverage, ample liquidity and
high operating margins. Although UHS's markets may exhibit
above-average economic cyclicality, its urban and large suburban
markets generally have better organic growth prospects than other
smaller markets. UHS is also diversified in its revenue, with over
40% of revenue generated from behavioral health services.
UHS's operating position and low leverage are key factors that
distinguish its ratings from lower Fitch-rated peers, such as Tenet
Healthcare Corp. (B+/Positive) and Community Health Systems, Inc.
(CCC+).
Fitch does not employ a waterfall recovery analysis for issuers
rated 'BB+'. The further up the speculative-grade continuum a
rating moves, the more compressed the notching between the specific
classes of issuances becomes. As such, Fitch rates the senior
secured credit facility and senior secured bonds 'BBB-'/'RR1', one
notch above the IDR. This rating illustrates Fitch's expectation
for superior recovery prospects in the event of default.
Key Assumptions
- Revenue of $15.8 billion and operating EBITDA of $2.3 billion
with an EBITDA margin of 14.6% for 2024, followed by revenue growth
moderating within the 4%-7% range, and EBITDA margin improving
modestly within the 15.2%-15.6% range;
- Capex of $900 million-$1.05 billion annually over the forecast
period (5.5%-6.0% of revenue versus estimated maintenance levels of
about 3.0%-4.0%);
- FCF totaling 4.5%-6.0% of revenue, net of dividends of about $40
million-$55 million annually;
- Share repurchases rising over the forecast period within a range
of $600 million-$1.0 billion annually;
- No allocation of discretionary FCF toward voluntary debt
repayments;
- Effective interest rate of about 4.5% for the forecast period,
with SOFR declining modestly from 4.750% in 2025 to 4.250% by
2027.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's expectation that UHS will sustain EBITDA leverage above
3.0x;
- Fitch's expectation that UHS will sustain (CFO-capex)/debt below
8.0%;
- Regulatory or litigation development reducing the diversification
value of its behavioral health unit.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch's expectation that UHS will sustain EBITDA leverage below
2.0x;
- Fitch's expectation that UHS will sustain (CFO-capex)/debt above
12.0%;
- Favorable financial policy communicated in explicit terms.
Liquidity and Debt Structure
As of Sept. 30, 2024, UHS's liquidity included $106 million of
unrestricted cash and availability of $1.009 billion under its
$1.300 billion revolver. Fitch sees EBITDA growth driving material
increases in FCF, from $0.4 billion in 2023 to $0.7 billion-$0.8
billion in 2024-2025 and $1.0 billion-$1.1 billion in 2026-2027
(this considers growth investments and dividends). Fitch expects
UHS to prioritize de novo investments and share repurchases, and
assumes FCF will not fund voluntary debt repayment.
Beyond annual term loan amortization, the only near-term debt
maturity is $700 million of 1.650% senior secured notes due
September 2026, with no other debt due until 2029. Fitch assumes
UHS maintains an effective interest rate of about 4.5% over the
rating horizon.
Issuer Profile
Universal Health Services, Inc. (UHS) is one of the largest
publicly traded, for-profit health systems focusing on urban and
suburban markets in the U.S. and U.K. It operates acute care
hospitals and behavioral health facilities offering inpatient and
outpatient care.
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
Universal Health Services, Inc. has an ESG Relevance Score of '4'
for Governance Structure due to the Miller family's significant
control of the company via its equity ownership and the relative
voting rights of multiple share classes of UHS stock. This has a
negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.
Universal Health Services, Inc. has an ESG Relevance Score of '4'
for Exposure to Social Impacts, reflecting pressure to contain
health care spending growth, a highly sensitive political
environment and social pressure to contain costs or restrict
pricing. This has a negative impact on the credit profile, and is
relevant to the ratings in conjunction with other factors.
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
----------- ------ -------- -----
Universal Health
Services, Inc. LT IDR BB+ Affirmed BB+
senior secured LT BBB- Affirmed RR1 BBB-
VALLEY PARK: Gets Interim OK to Use Cash Collateral
---------------------------------------------------
Valley Park Elevator, Inc. got the green light from the U.S.
Bankruptcy Court for the Southern District of Mississippi to use
cash collateral.
The interim order signed by Judge Jamie Wilson authorized the
company to use cash collateral for the expenses listed in its
budget through March 31, and for payment of U.S. Trustee fees.
United Bank and the U.S. Small Business Administration assert an
interest in the company's cash collateral.
As protection for the use of their cash collateral, both creditors
were granted a replacement security interest in all property that
the company acquired post-petition that is the same type of
property that the creditors hold a pre-bankruptcy interest, lien or
security interest.
A final hearing will be held on March 3.
About Valley Park Elevator Inc.
Valley Park Elevator, Inc., a company in Valley Park, Miss., filed
Chapter 11 petition (Bankr. S.D. Miss. Case No. 25-00228) on
January 29, 2025, listing between $10 million and $50 million in
assets and between $1 million and $10 million in liabilities. David
Johnson, president of Valley Park Elevator, signed the petition.
Judge Jamie A. Wilson oversees the case.
Thomas C. Rollins, Jr., Esq., at The Rollins Law Firm, PLLC,
represents the Debtor as bankruptcy counsel.
United Bank, as lender, is represented by:
Jeffrey R. Barber, Esq.
Jones Walker, LLP
3100 North State Street, Suite 300 (39216)
Post Office Box 427
Jackson, MS 39205-0427
Telephone (601) 949-4765
Telecopy (601) 949-4804
Email: jbarber@joneswalker.com
VOSSEKUIL PROPERTIES: Case Summary & Three Unsecured Creditors
--------------------------------------------------------------
Debtor: Vossekuil Properties, LLC
504 County Park Road
PO Box 572
Waupun, WI 53963
Chapter 11 Petition Date: February 10, 2025
Court: United States Bankruptcy Court
Eastern District of Wisconsin
Case No.: 25-20671
Debtor's Counsel: Michelle A Angell, Esq.
MILLER & MILLER LAW, LLC
700 W Virginia St, Ste 605
Suite 600
Milwaukee, WI 53204-1515
Tel: (414) 277-7742
Fax: (414) 277-1303
E-mail: michelle@millermillerlaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Dean W. Vossekuil as owner.
A full-text copy of the petition, which includes a list of the
Debtor's three unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/C6EUMAA/Vossekuil_Properties_LLC__wiebke-25-20671__0001.0.pdf?mcid=tGE4TAMA
WILD EARTH: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Wild Earth, Inc.
Suite LL-70
600 Park Offices Drive
Durham, NC 27709
Business Description: Wild Earth has been operating since 2017,
originally as a startup focused on creating
a fully plant-based dog food. Its mission
is to develop vegan pet food that promotes
longer, healthier lives for pets through
superior nutrition. Since its inception,
the Company has been primarily selling its
products online, with Amazon and Chewy as
two major retail partners, in addition to
direct sales via its website, wildearth.com.
Chapter 11 Petition Date: February 11, 2025
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 25-00495
Judge: Hon. Pamela W Mcafee
Debtor's Counsel: Laurie B. Biggs, Esq.
BIGGS LAW FIRM PLLC
9208 Falls of Neuse Road Suite 120
Raleigh, NC 27615
Tel: (919) 375-8040
Fax: (919) 341-9942
Email: lbiggs@biggslawnc.com
Total Assets: $2,424,899
Total Liabilities: $12,625,462
The petition was signed by Ryan Bethencourt as chief executive
officer.
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/TETFF5I/Wild_Earth_Inc__ncebke-25-00495__0001.0.pdf?mcid=tGE4TAMA
WINWARD DESIGN: Seeks Chapter 11 Bankruptcy in Florida
------------------------------------------------------
On February 6, 2025, Windward Design Group Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Middle District of
Florida.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Windward Design Group Inc.
Windward Design Group Inc. is a manufacturing firm that
manufactures home furnitures including outdoor tables & umbrellas.
Windward Design Group Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00780) on
February 6, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Catherine Peek McEwen handles the
case.
The Debtor is represented by:
Edward J. Peterson, Esq.
JOHNSON, POPE, BOKOR, RUPPEL & BURNS, LLP
400 N Ashley Dr. #3100
Tampa, FL 33602
Tel: 813-225-2500
WORLD WIDE TECHNOLOGY: S&P Affirms 'BB' ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings affirmed its 'BB' issuer credit rating on World
Wide Technology Holding Co. LLC (WWT). S&P also assigned its 'BB'
issue-level and '3' recovery rating to the company's proposed term
loan add-on, reflecting its expectation of meaningful (50%-70%;
rounded estimate: 55%) recovery in the event of a default.
S&P said, "The stable outlook reflects our expectation for organic
revenue growth of 3% over the next two years and a financial policy
that results in S&P Global Ratings-adjusted net leverage declining
to 3.7x at the end of 2025 and 3.6x at the end of 2026 from its
expected peak in the middle of 2025."
WWT, a St. Louis-based provider of IT supply chain solutions,
announced it entered into a definite agreement to acquire
Softchoice and plans to issue an incremental $400 million term loan
B, and use it, along with $842 million of cash from its balance
sheet, to fund the acquisition.
The transaction will increase the company's leverage to around
3.7x, which is still in line with our expectation for the 'BB'
issuer credit rating.
S&P said, "Financing the Softchoice acquisition will weaken WWT's
credit metrics, though we still expect them to remain at levels
consistent. with our rating expectations. WWT plans to finance the
acquisitions of Softchoice with $842 of cash from its balance sheet
and a $400 million fungible add-on. While the acquisition will
significantly increase the company's S&P Global Ratings-adjusted
net leverage (includes debt adjustments for preferred equity and
for accounts receivable and inventory sales we consider as
factoring) to 3.5x from 2x at Dec. 31,2024, the company's pro forma
leverage still below our downgrade trigger. We expect adjusted net
debt leverage will peak in the first half of 2025 due to a working
capital swing and special dividend distribution to shareholders
decreasing the company's cash balances. While the pro forma
leverage and near-term trajectory doesn't leave a lot of room for
further acquisition or additional special distributions, we expect
leverage will decline to 3.7x by the end of 2025 and 3.6x by the
end of 2026.
"Our near-term base case forecast projects the company's EBITDA
margin will improve in 2025 and 2026. For the full year, revenue
and gross profit improved by 8% and 6% year-over-year, due to
strong growth in the Global Services provider international
segment, AI data center demand, and public growth. Global
enterprise solutions saw strong growth in WS customers partially
offset by lower customer spending in the global financial market
and enterprise space. Services grew 5% year-over-year. We forecast
S&P Global Ratings-adjusted EBITDA margins will increase above
historical levels primarily due to the acquisition of Softchoice.
On a stand-alone basis, Softchoice has a higher EBITDA margin due
to the higher percentage cloud and services revenue and lower
hardware revenue compared to WWT. Further, WWT has very large
enterprise customer contracts at a lower gross margin. We expect as
enterprise IT spending cools and volumes shift toward less
profitable hardware sales, the company will see an unfavorable
revenue mix. Following the recent change in business model for
WWT's largest web services customer, we assume the company will
complete $1 billion in annual inventory sales that we consider as
factoring and include in our adjusted debt calculation.
"We expect the addition of Softchoice to be modestly accretive to
how we currently assess WWT's business. Softchoice's offerings,
expertise, and customer base are considered complementary to that
of WWT, which should provide good opportunities for cross-selling,
and we do not believe the integration of the two companies entails
significant operational or execution risk, given minimal cost
synergies are being targeted.
"Moreover, WWT will gain key benefits from acquiring Softchoice
that are also likely to be accretive to our existing view of WWT
business risk. These include expansion into a small and medium
business (SMB) customer base, improved geographic diversity,
opportunities for more entrenched relationships with key partners
such as Microsoft, and a broadened set of offerings and expertise
in software, cloud, and cybersecurity (critical for digital
transformation and supporting technologies of generative AI) and
generative AI capabilities, where the company has ambitious growth
plans.
"That being said, at least initially, we would not expect these
benefits to materially alter the key strengths and constraints or
the company's market position relative to peers we currently
consider in the business risk assessment. For instance, even with
increased scale, we would still view its market share as modest in
the highly competitive and fragmented industry of IT outsourced
services. This includes much larger and more diverse competitors
who, in some instances, operate broader product capabilities and
retain greater financial resources.
"WWT's acquisition Softchoice is its largest ever, but our views of
it financial policy remain the same. Historically, the company has
maintained a conservative financial policy characterized by organic
growth and significant but manageable dividends funded by cash flow
generation. Softchoice is the largest acquisition the company has
ever done, and we do not expect further transactions of this size
over the near term. The company intends to deleverage through
EBITDA growth, and we believe WWT will remain fairly conservative
in managing its business. WWT has historically distributed about
$100 million to $200 million annually to shareholders to fund
discretionary profit-sharing distributions and the tax liabilities
of its shareholders. We expect the company will continue to make
these payments, delaying a quick improvement in credit metrics.
"We view WWT's family ownership structure as being associated with
a long-term investment horizon, which supports our assessment of
financial policy risk. The company is managed since its 1990
inception by two families, the Stewards and Kavanaughs, with David
Steward serving as chairman of the board and Jim Kavanaugh as CEO.
In 2018, BDT Capital completed a minority investment in the
business through the ownership of preferred shares. The five-member
board includes the chairman, CEO, and three independent directors.
We do not expect WWT's owners will exit their investment in the
near term.
"The stable outlook reflects our expectation for organic revenue
growth of 3% over the next two years and a financial policy that
results in S&P Global Ratings-adjusted net leverage declining to
3.7x in 2025 and 3.6x in 2026."
S&P could lower its rating on WWT if leverage increases and remains
above 4x.
This could occur with:
-- A larger-than-anticipated reliance on the asset-based lending
ABL revolver to fund working capital growth;
-- A downturn in global IT spending, rapid technological shift,
large customer loss, operational or service-related issues, or
increased competition resulting in sustained EBITDA declines; or
-- The company adopting a more aggressive financial policy by
pursuing large debt-funded acquisitions or shareholder returns.
Although unlikely within the next 12 months, S&P could raise its
rating on WWT if:
-- The company re-established its track record of high revenue
growth, improved its mix of services revenue, and significantly
expanded its EBITDA margins; or
-- S&P believed the company were committed to a more conservative
financial policy, such that it sustained leverage below 3x even
after incorporating acquisitions, shareholder distributions, and
economic volatility.
WORLDWIDE IMPORTS: Files Chapter 11 Bankruptcy in Mississippi
-------------------------------------------------------------
On February 7, 2025, Worldwide Imports Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Southern District
of Mississippi.
According to court filing, the Debtor reports between $500,000
and $1 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Worldwide Imports Inc.
Worldwide Imports Inc. -- https://wwimports.store/ -- is a trusted
source for premium wholesale products. Specializing in high-quality
perfumes, including spray and roll-on varieties, we also offer a
diverse range of body sprays, air and floor fresheners, luxurious
soaps and creams, Bakhour, Mabkhara, apparel, sujad, home and
kitchen essentials, and foods.
Worldwide Imports Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Miss. Case No. 25-50175) on February
7, 2025. In its petition, the Debtor reports estimated assets
between $1 million and $10 million and estimated liabilities
between $500,000 and $1 million.
Honorable Bankruptcy Judge Jamie A. Wilson handles the case.
The Debtor is represented by:
Patrick Sheehan, Esq.
SHEEHAN AND RAMSEY, PLLC
429 Porter Ave
Ocean Springs, MS 39564
Tel: 228-875-0572
E-mail: Pat@sheehanramsey.com
YORK BEACH SURF: Seeks Chapter 11 Bankruptcy Protection in Maine
----------------------------------------------------------------
On February 6, 2025, York Beach Surf Club LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Maine.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About York Beach Surf Club LLC
York Beach Surf Club LLC, doing business as The York Beach Surf
Club and York Harbor Motel, operates in the traveler accommodation
sector.
York Beach Surf Club LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Me. Case No. 25-20021) on February 6,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Peter G. Cary handles the case.
The Debtor is represented by:
David C. Johnson, Esq.
MARCUS CLEGG
16 Middle Street Unit 501A
Portland, ME 04101
Tel: (207) 828-8000
E-mail: bankruptcy@marcusclegg.com
Z BRAND: Seeks Cash Collateral Access
-------------------------------------
Z Brand Group, Inc. asked the U.S. Bankruptcy Court for the Western
District of Pennsylvania for authority to use cash collateral.
As of the petition date, the company's cash collateral was $131,750
comprised of $45,000 in equipment, $80,000 in accounts receivables,
and $6,750 in bank accounts.
The Huntington National Bank and the U.S. Small Business
Administration assert an interest in the company's cash collateral.
The bank has an aggregate claim of $527,356 against the company.
In exchange for its continued use of cash collateral, Z Brand Group
will begin making interest payments to the bank in the amount to be
determined by the court or upon the agreement of the parties. Z
Brand Group believes that $1,671.71 per month will adequately
protect and pay the secured claim in full over five years at 10.75
%.
In further consideration and exchange for Z Brand Group's continued
use of cash collateral, Huntington National Bank will receive
adequate protection in the form of a legal, valid, binding,
continuing, enforceable, perfected, other than the lien to the
extent they are secured by value, and first priority replacement
liens on and security interests in the company's personal property
and assets against which the bank held valid, perfected, and
enforceable liens and security interests as of the petition date,
which will include proceeds of the collateral acquired after the
petition date pursuant to Section 552(b); and deemed to be
effective nunc pro tunc from the petition date without further
action by the Bank.
A hearing on the matter is set for March 6.
About Z Brand Group Inc.
Z Brand Group, Inc. operates by design, sourcing, and manufacturing
products.
Z Brand Group sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-22524) on October 14,
2024, listing up to $500,000 in assets and up to $10 million in
liabilities. Jeff Lizik, president of Z Brand Group, signed the
petition.
Judge John C. Melaragno oversees the case.
Donald R. Calaiaro, Esq., at Calaiaro Valencik, represents the
Debtor as legal counsel.
Huntington National Bank, as lender, is represented by:
Justin M. Tuskan, Esq.
Metz Lewis Brodman Must O’Keefe LLC
444 Liberty Avenue, Suite 2100
Pittsburgh, PA 15222
Phone: (412) 918-1100
Facsimile: (412) 918-1199
Email: jtuskan@metzlewis.com
ZMETRA LAND: Seeks to Use $462,282 in Cash Collateral
-----------------------------------------------------
Zmetra Land Holdings, LLC asked the U.S. Bankruptcy Court for the
District of Massachusetts, Central District for authority to use
$462,282 in cash collateral until May 2.
The company is the record holder of a 35,000-square-foot industrial
facility located at 2 Old Worcester Road, Webster, Mass. According
to an appraisal dated November 5, 2018, the real estate had a
market value of $2.5 million.
In addition to real estate, Zmetra's assets on the petition date
include $2.40 in cash and $462,282 in accounts receivable.
Approximately $69,342 of the accounts receivable are 90 days or
less. The accounts receivable represent amounts owed to the company
by Zmetra Clearspan Structures, LLC. Clearspan is the sole tenant
of the facility.
In 2019, Zmetra and Clearspan obtained a $1.5 million loan from the
U.S. Small Business Administration through Newtek Small Business
Finance, LLC. As security for the loan, Newtek holds the mortgage
and assignment of rents on the facility. The mortgage is in arrears
and a foreclosure sale has been scheduled for Feb. 13 by Newtek.
Unpaid real estate taxes to the Town of Webster in the amount of
$72,340 are the only other encumbrance.
Clearspan has sufficient cash flow to pay $23,000 per month to
Zmetra. Zmetra believes this is the current monthly principal and
interest payment and proposed to pay this amount to Newtek as
adequate protection.
Zmetra would maintain insurance and Clearspan would also pay
property taxes going forward to the Town of Webster.
About Zmetra Land Holdings
Zmetra Land Holdings, LLC specializes in property management,
overseeing the operations, maintenance, and leasing of real estate
assets. It owns a 35,000-square-foot industrial facility located at
2 Old Worcester Road, Webster, Mass. The property is valued at $2.5
million.
Zmetra filed Chapter 11 petition (Bankr. D. Mass. Case No.
25-40127) on February 4. In its petition, Zmetra reported total
assets of $2,962,284 and total debts of $3,085,001.
James L. O'Connor, Esq., at Nickless, Phillips and O'Connor,
represents the Debtor as legal counsel.
Newtek Small Business Finance, LLC, as lender, is represented by:
Jonathan M. Hixon, Esq.
Hackett Feinberg P.C.
155 Federal Street, 9th Floor
Boston, MA 02110
Email: jmh@bostonbusinesslaw.com
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Campbell Family Enterprises, Inc
Bankr. N.D. Miss. Case No. 25-10364
Chapter 11 Petition filed February 4, 2025
See
https://www.pacermonitor.com/view/2TB7JGY/Campbell_Family_Enterprises_Inc__msnbke-25-10364__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas C. Rollins, Jr., Esq.
THE ROLLINS LAW FIRM, PLLC
E-mail: trollins@therollinsfirm.com
In re A.B.O.D.E. Treatment, Inc.
Bankr. N.D. Tex. Case No. 25-40451
Chapter 11 Petition filed February 4, 2025
See
https://www.pacermonitor.com/view/G2UCEVQ/ABODE_Treatment_Inc__txnbke-25-40451__0001.0.pdf?mcid=tGE4TAMA
represented by: Kevin S. Wiley, Sr., Esq.
WILEY LAW GROUP, PLLC
E-mail: kwiley@wileylawgroup.com
In re Maxine Rochell
Bankr. E.D. Ark. Case No. 25-10369
Chapter 11 Petition filed February 5, 2025
represented by: Sheila Campbell, Esq.
In re Road Warrior Transport LLC
Bankr. C.D. Cal. Case No. 25-10680
Chapter 11 Petition filed February 5, 2025
See
https://www.pacermonitor.com/view/PULWNAY/Road_Warrior_Transportation_LLC__cacbke-25-10680__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Daniel Kwasi Yeboah
Bankr. C.D. Cal. Case No. 25-10698
Chapter 11 Petition filed February 5, 2025
In re David Joseph McGill and Christy Ann McGill
Bankr. S.D. Ind. Case No. 25-00544
Chapter 11 Petition filed February 5, 2025
represented by: David Krebs, Esq.
HESTER BAKER KREBS LLC
In re Dunbar Properties, LLC
Bankr. D.N.J. Case No. 25-11225
Chapter 11 Petition filed February 5, 2025
See
https://www.pacermonitor.com/view/XXDMGWY/Dunbar_Properties_LLC__njbke-25-11225__0001.0.pdf?mcid=tGE4TAMA
represented by: David A. Kasen, Esq.
KASEN & KASEN, P.C.
E-mail: dkasen@kasenlaw.com
In re 188-03 Pineville Lane Corp.
Bankr. E.D.N.Y. Case No. 25-40567
Chapter 11 Petition filed February 5, 2025
See
https://www.pacermonitor.com/view/MO2RV4A/188_03_Pineville_Lane_Corp__nyebke-25-40567__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Kenneth Dewayne Vereen
Bankr. M.D. Tenn. Case No. 25-00485
Chapter 11 Petition filed February 5, 2025
represented by: Keith Edmiston, Esq.
In re Garcia Dearing Investments, Inc.
d/b/a J&G's Citywide Express Charter
Bankr. W.D. Tex. Case No. 25-10170
Chapter 11 Petition filed February 5, 2025
See
https://www.pacermonitor.com/view/PGCPY7Q/Garcia_Dearing_Investments_Inc__txwbke-25-10170__0001.0.pdf?mcid=tGE4TAMA
represented by: Brandon Tittle, Esq.
TITTLE LAW GROUP, PLLC
E-mail: btittle@tittlelawgroup.com
In re Cedric Marcelle Powell
Bankr. S.D. Ill. Case No. 25-30099
Chapter 11 Petition filed February 6, 2025
represented by: Jerry Graham, Esq.
In re 9300 Parkway Subdivision, LLC
Bankr. D. Md. Case No. 25-11047
Chapter 11 Petition filed February 6, 2025
See
https://www.pacermonitor.com/view/NCLIWPQ/9300_Parkway_Subdivision_LLC__mdbke-25-11047__0001.0.pdf?mcid=tGE4TAMA
represented by: Sheereen Middleton, Esq.
MIDDLETON LEGAL
E-mail: middletonlegal@gmail.com
In re Primesource Incorporated
Bankr. D. Mont. Case No. 25-40004
Chapter 11 Petition filed February 6, 2025
See
https://www.pacermonitor.com/view/M53SUWA/PRIMESOURCE_INCORPORATED__mtbke-25-40004__0001.0.pdf?mcid=tGE4TAMA
represented by: Gary S. Deschenes, Esq.
DESCHENES & ASSOCIATES LAW OFFICES
E-mail: gsd@dalawmt.com
In re Research Education and Access for Community Health
Bankr. D. Nev. Case No. 25-10689
Chapter 11 Petition filed February 6, 2025
See
https://www.pacermonitor.com/view/NL2L7II/Research_Education_and_Access__nvbke-25-10689__0001.0.pdf?mcid=tGE4TAMA
represented by: Ryan A. Andersen, Esq.
ANDERSEN BEEDE WEISENMILLER
E-mail: ryan@abwfirm.com
In re Family Healing Center, Inc.
Bankr. D.N.J. Case No. 25-11266
Chapter 11 Petition filed February 6, 2025
See
https://www.pacermonitor.com/view/KNXZ35A/FAMILY_HEALING_CENTER_INC__njbke-25-11266__0001.0.pdf?mcid=tGE4TAMA
represented by: John McDonnell, Esq.
MCDONNELL CROWLEY, LLC
E-mail: jmcdonnell@mchfirm.com
In re Reginald Daniels
Bankr. E.D.N.Y. Case No. 25-40591
Chapter 11 Petition filed February 6, 2025
represented by: Vivian Williams, Esq.
In re Jacqueline R. Nieves
Bankr. E.D.N.Y. Case No. 25-40615
Chapter 11 Petition filed February 6, 2025
represented by: Julio Portilla, Esq.
In re Veterans Empowering Veterans, Inc.
Bankr. E.D.N.C. Case No. 25-00445
Chapter 11 Petition filed February 6, 2025
See
https://www.pacermonitor.com/view/AMHB6VA/Veterans_Empowering_Veterans_Inc__ncebke-25-00445__0001.0.pdf?mcid=tGE4TAMA
represented by: JM Cook, Esq.
J.M. COOK, P.A.
E-mail: j.m.cook@jmcookesq.com
In re New Dominion Enterprises, Inc.
Bankr. E.D. Pa. Case No. 25-10224
Chapter 11 Petition filed February 6, 2025
See
https://www.pacermonitor.com/view/ER24KKY/New_Dominion_Enterprises_Inc__vaebke-25-10224__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Pan Am Dental, P.A.
Bankr. W.D. Tex. Case No. 25-50270
Chapter 11 Petition filed February 6, 2025
See
https://www.pacermonitor.com/view/HZ2FLMI/Pan_Am_Dental_PA__txwbke-25-50270__0001.0.pdf?mcid=tGE4TAMA
represented by: H. Anthony Hervol, Esq.
LAW OFFICE OF H. ANTHONY HERVOL
E-mail: hervol@sbcglobal.net
In re Jayan Aron Partow
Bankr. C.D. Cal. Case No. 25-10973
Chapter 11 Petition filed February 7, 2025
In re Puremedy, Inc.
Bankr. C.D. Cal. Case No. 25-10156
Chapter 11 Petition filed February 7, 2025
See
https://www.pacermonitor.com/view/RVTLQ3I/Puremedy_Inc__cacbke-25-10156__0001.0.pdf?mcid=tGE4TAMA
represented by: William C. Beall, Esq.
BEALL & BURKHARDT, APC
E-mail: will@beallandburkhardt.com
In re XYZ Home Buyers, LLC
Bankr. M.D. Ga. Case No. 25-40081
Chapter 11 Petition filed February 7, 2025
See
https://www.pacermonitor.com/view/LJ5P3XA/XYZ_Home_Buyers_LLC__gambke-25-40081__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas T. McClendon, Esq.
JONES & WALDEN LLC
E-mail: tmcclendon@joneswalden.com
In re Michael L Bauguss and Gwendolyn S Bauguss
Bankr. S.D. Ill. Case No. 25-60022
Chapter 11 Petition filed February 7, 2025
represented by: Andrew Magdy, Esq.
In re Jose R. Ponce
Bankr. E.D. Mo. Case No. 25-40379
Chapter 11 Petition filed February 7, 2025
represented by: Spencer Desai, Esq.
In re Menorah Campus Independent Senior Apartments, Inc.
Bankr. W.D.N.Y. Case No. 25-10135
Chapter 11 Petition filed February 7, 2025
See
https://www.pacermonitor.com/view/NYEKO7Q/Menorah_Campus_Independent_Senior__nywbke-25-10135__0001.0.pdf?mcid=tGE4TAMA
represented by: Kevin R. Lelonek, Esq.
GROSS SHUMAN PC
E-mail: klelonek@gross-shuman.com
In re Menorah Campus Adult Home, Inc.
Bankr. W.D.N.Y. Case No. 25-10133
Chapter 11 Petition filed February 7, 2025
See
https://www.pacermonitor.com/view/NCA7WJA/Menorah_Campus_Adult_Home_Inc__nywbke-25-10133__0001.0.pdf?mcid=tGE4TAMA
represented by: Kevin R. Lelonek, Esq.
GROSS SHUMAN PC
E-mail: klelonek@gross-shuman.com
In re Hoopers Distributing LLC
Bankr. E.D.N.C. Case No. 25-00447
Chapter 11 Petition filed February 7, 2025
See
https://www.pacermonitor.com/view/MYRGGKQ/Hoopers_Distributing_LLC__ncebke-25-00447__0001.0.pdf?mcid=tGE4TAMA
represented by: Benjamin E.F.B. Waller, Esq.
HENDREN, REDWINE & MALONE, PLLC
E-mail: bwaller@hendrenmalone.com
In re 578 Cleveland LLC
Bankr. N.D. Cal. Case No. 25-40238
Chapter 11 Petition filed February 10, 2025
See
https://www.pacermonitor.com/view/RIMKFKQ/578_Cleveland_LLC__canbke-25-40238__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Cargo Lifts of North Florida, LLC
Bankr. N.D. Fla. Case No. 25-10036
Chapter 11 Petition filed February 10, 2025
See
https://www.pacermonitor.com/view/Q526BLI/Cargo_Lifts_of_North_Florida_LLC__flnbke-25-10036__0001.0.pdf?mcid=tGE4TAMA
represented by: Elena Paras Ketchum, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
E-mail: eketchum@srpb.com
In re Daryl Fred Heller
Bankr. D.N.J. Case No. 25-11354
Chapter 11 Petition filed February 10, 2025
represented by: Sari B. Placona, Esq.
McMANIMON, SCOTLAND & BAUMANN, LLC
E-mail: splacona@msbnj.com
In re Lori Lynne Dickerson
Bankr. S.D. Ohio Case No. 25-50481
Chapter 11 Petition filed February 10, 2025
In re Royal Spade Inc.
Bankr. N.D. Tex. Case No. 25-30495
Chapter 11 Petition filed February 10, 2025
See
https://www.pacermonitor.com/view/PRYKCJQ/Royal_Spade_Inc__txnbke-25-30495__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert T DeMarco, Esq.
DEMARCO MITCHELL, PLLC
E-mail: robert@demarcomitchell.com
In re B2 United LLC
Bankr. N.D. Tex. Case No. 25-40492
Chapter 11 Petition filed February 10, 2025
See
https://www.pacermonitor.com/view/M2BN4CI/B2_United_LLC__txnbke-25-40492__0001.0.pdf?mcid=tGE4TAMA
represented by: Clayton L. Everett, Esq.
NORRED LAW, PLLC
E-mail: clayton@norredlaw.com
In re Christopher Allan Chance
Bankr. C.D. Cal. Case No. 25-11031
Chapter 11 Petition filed February 11, 2025
represented by: Andy Warshaw, Esq.
In re Robert Emmett Cummins, Jr. and Sandra Cummins
Bankr. M.D. Fla. Case No. 25-00405
Chapter 11 Petition filed February 11, 2025
represented by: Thomas Adam, Esq.
In re Kinchit K. Shah and Bhavita Gaglani
Bankr. E.D.N.C. Case No. 25-00487
Chapter 11 Petition filed February 11, 2025
represented by: Danny Bradford, Esq.
*********
Monday's edition of the TCR delivers a list of indicative prices
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