/raid1/www/Hosts/bankrupt/TCR_Public/250324.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, March 24, 2025, Vol. 29, No. 82
Headlines
1031 SOLUTIONS: Seeks to Hire Levene Neale Bender as Legal Counsel
13007 YUKON AVENUE: Seeks to Hire Lesnick Prince Pappas as Counsel
1800 CORDON ROAD: Seeks to Hire Acuity Forensics as Accountant
1800 CORDON: Seeks to Hire Acuity Forensics as Accountant
220 FTL-LTPJ: Plan Exclusivity Period Extended to April 14
2281 CHURCH AVENUE: Taps Jackie Henry Realty as Real Estate Broker
2835 OCTAVIA: Case Summary & Two Unsecured Creditors
323 SOUTH: Seeks to Tap Solomon Rosengarten as Legal Counsel
3784 LLC: U.S. Trustee Unable to Appoint Committee
3RP RECYCLING: Seeks to Hire Keech Law Firm as Bankruptcy Counsel
66FGP LLC: Case Summary & Three Unsecured Creditors
7Q59 AMHERST: Seeks Subchapter V Bankruptcy in Massachusetts
901 S. LA BREA: U.S. Trustee Unable to Appoint Committee
9029 NEW YORK: Seeks Approval to Tap Low & Low as Legal Counsel
A/C DUCTOLOGIST: Case Summary & 20 Largest Unsecured Creditors
ABP AVENTURA: Seeks Subchapter V Bankruptcy in Florida
ACCORD LEASE: Court Extends Cash Collateral Access to April 18
ADVANTACLEAN OF METRO: Sec. 341(a) Meeting of Creditors on April 15
AFH AIR: Seeks Chapter 11 Bankruptcy in Georgia, To Sell Assets
AFTERSHOCK COMICS: Court Extends Cash Collateral Access to March 31
AIR PROS: Files Chapter 11 to Sell All Businesses as Going Concerns
ALLSTATE REALTY: Court Extends Cash Collateral Access to June 30
ALLSTATE REALTY: Seeks Approval to Tap GA Appraisals as Appraiser
AMERICAN IMPACT: Voluntary Chapter 11 Case Summary
AMERICAN TRAILER: Moody's Cuts CFR to Caa1, Outlook Negative
AMERIGLASS CONTRACTOR: Hires Susan D. Lasky as Bankruptcy Counsel
ARTISTIC HOLIDAY: U.S. Trustee Appoints 2 New Committee Members
AVON PLACE: Seeks Chapter 11 Bankruptcy in New York
AVONDALE HOMES: Case Summary & 20 Largest Unsecured Creditors
AZZUR GROUP: U.S. Trustee Appoints Creditors' Committee
B2 UNITED: Seeks Approval to Hire Norred Law as Bankruptcy Counsel
BARSCOTT LLC: Seeks to Hire Levene Neale Bender as Legal Counsel
BAYSHORE SUITES: U.S. Trustee Unable to Appoint Committee
BBQ 4 LIFE: Unsecureds to Split $145.4K over 36 Months
BELL CANADA: S&P Rates Proposed Subordinated Notes 'BB+'
BENSON HILL: Case Summary & 30 Largest Unsecured Creditors
BETA DRIVE HOTEL: Gets Interim OK to Use Cash Collateral
BIG LOTS: To Close Dozens of Locations After Items Run Out
BLACKROCK TCP: Moody's Withdraws 'Ba1' Corporate Family Rating
BRIGHTMARK PLASTICS: Gets Court Approval for Chapter 11 Financing
BROWN & BROWN: Seeks Chapter 11 Bankruptcy in Texas
BTG TEXTILES: Gets Interim OK to Use Cash Collateral Until April 23
BUFFALO NEWSPRESS: U.S. Trustee Unable to Appoint Committee
BUTLER TRUCKING: Court OKs Interim Access to Cash Collateral
C.I.I. INC: Seeks to Hire Corey B. Beck PC as Legal Counsel
CAMP RIM: Unsecured Creditors to Get 22.4% of Claims over 5 Years
CAPSTONE COPPER: S&P Assigns 'BB-' ICR, Outlook Stable
CC 1400 ALICEANNA: Seeks Chapter 11 Bankruptcy in Maryland
CEDERMERE LLC: Voluntary Chapter 11 Case Summary
CENTRAL HOUSEWARES: Gets Final OK to Use Cash Collateral
CHASEN CONSTRUCTION: Involuntary Chapter 11 Case Summary
CHICKEN SHACK: Seeks to Tap Northside Tax Service as Enrolled Agent
CKA ENTERPRISES: Seeks to Hire Tang & Associates as Legal Counsel
COGENT BAY: Seeks to Hire The Knight Law Group as Legal Counsel
COGENT BAY: Seeks to Hire Turton Commercial as Real Estate Broker
COHNREZNICK ADVISORY: Fitch Assigns 'B' IDR, Outlook Stable
COMMUNITY AWARENESS: Seeks Chapter 11 Bankruptcy in New York
CONROE CORRAL: Seeks to Hire Acosta Law as Bankruptcy Counsel
CONROE CORRAL: Seeks to Hire Adrienne J. Paris as Accountant
D ELITE MANAGEMENT: Seeks Chapter 11 Bankruptcy in Texas
D&D TRUCKING: Taps Sheehan & Associates as Bankruptcy Counsel
DANIMER SCIENTIFIC: Has Six Weeks to Secure Buyer
DAV SUB: Voluntary Chapter 11 Case Summary
DAVID KIMMEL: Case Summary & Four Unsecured Creditors
DIAMOND SURFACES: Case Summary & 12 Unsecured Creditors
DRAKSIN PROPERTIES: Seeks to Tap Orville & McDonald Law as Counsel
DUNIMUS OUTREACH: Hires John G. Rhyne as Bankruptcy Counsel
EDMONDS WELLNESS: Seeks Subchapter V Bankruptcy in Washington
ELEGANZA TILES: U.S. Trustee Unable to Appoint Committee
ELENAROSE CAPITAL: To Sell Coal Transportation Business at Auction
ELITE SURGERY: Seeks Chapter 11 Bankruptcy in California
EXACTECH INC: Reaches $10MM Chapter 11 Deal with TPG
FARIFOX CORP: Hires Durand and Associates as Attorney
FELTRIM TUSCANY: Voluntary Chapter 11 Case Summary
FIG & FENNEL: To Sell Liquor License to Jalisco Restaurant
FIRSTBASE.IO INC: Taps Quinn and Dilworth as Special Counsels
FLATIRON NEW: Unsecureds to Get Share of Income for 3 Years
FLUID MARKET: Plan Exclusivity Period Extended to May 14
FOREVER 21: U.S. Operator F21 OpCo Files Chapter 11, Eyes Wind Down
FOSSIL CREEK: Seeks Chapter 11 Bankruptcy Protection in Texas
FREE SPEECH: Judge Denies Newest Infowars Asset Request
FRUGALITY INC: Seeks to Hire Bruner Wright as Bankruptcy Counsel
FTX TRADING: Crypto Lobbyist Fails to Secure Criminal Case Delay
GALILEO SCHOOL: Moody's Alters Outlook on Ba1 Bond Rating to Neg.
GCI LLC: S&P Places 'B+' Issuer Credit Rating to Watch Negative
GENERATIONS ON 1ST: Court Extends Cash Collateral Access to May 15
GENESIS ENERGY: S&P Alters Outlook to Positive, Affirms 'B' ICR
GEORGIAN TRANSPORTATION: Seeks to Tap Estelle Miller as Accountant
GLOBAL NET: Fitch Puts 'BB+' IDR on Rating Watch Positive
GLORY PROJECT: Unsecureds Will Get 10% via Quarterly Payments
GPS HOSPITALITY: Moody's Cuts CFR to Caa2 & Alters Outlook to Neg.
GREENLEAF 2 CPE: Hires Levene Neale Bender Yoo as Legal Counsel
GREYSTONE PROPERTY: Voluntary Chapter 11 Case Summary
HALL CONSTRUCTION: Seeks to Tap Scott W. Spradley as Legal Counsel
HALL LABS: Seeks to Hire Diaz & Larsen as Bankruptcy Counsel
HARLING INC: Case Summary & 20 Largest Unsecured Creditors
HARRISBURG UNIVERSITY: S&P Lowers Revenue Bonds Rating to 'B-'
HERBALIFE LTD: S&P Upgrades ICR to 'B+' on Deleveraging
HILTS LOGGING: Seeks Chapter 11 Bankruptcy in New York
HUB CITY: Loses Subchapter V Status After Wage Claims Ruling
HUDSON'S BAY: Plans Full Liquidation Amid CCAA Filing
IGT LOTTERY: S&P Rates EUR1BB Senior Secured Term Loan 'BB+'
INTEGRITY REAL: Seeks to Hire Southeast Tax Advisors as Accountant
IRWIN NATURALS: Seeks to Extend Plan Exclusivity to April 5
ISLAND VIEW: Hearing on Bid to Use Cash Collateral Set for March 25
ITG COMMUNICATIONS: S&P Assigns 'B' ICR, Outlook Stable
JOANN INC: Committee Seeks to Hire Kelley Drye as Lead Counsel
JOANN INC: Committee Seeks to Hire Pachulski Stang as Co-Counsel
JOANN INC: Committee Taps Province LLC as Financial Advisor
JOANN INC: US Trustee Warns Potential Conflict in Hiring Deloitte
KB3 2275: Gets Interim OK to Use Cash Collateral
KIB1 LLC: Seeks Chapter 11 Bankruptcy in Nevada
KINETIK HOLDINGS: Fitch Assigns 'BB+' Rating on Sr. Unsecured Notes
KINETIK HOLDINGS: Moody's Rates New $250MM Add-on Notes 'Ba1'
KINGSBOROUGH ATLAS: Taps Carle Mackie Power Ross as Special Counsel
KOGA LLC: Case Summary & 19 Unsecured Creditors
KOPPERS HOLDINGS: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
LANDSEA HOMES: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
LAS VEGAS 0ILPK: Case Summary & 11 Unsecured Creditors
LENDINGTREE INC: S&P Upgrades ICR to 'B', Outlook Positive
LOCAL EATERIES: Seeks Subchapter V Bankruptcy in Tennessee
LUCAS CONSTRUCTION: Seeks to Hire The Kelly Firm as Legal Counsel
M6 ETX II: Fitch Hikes LongTerm IDR to 'B+', Outlook Stable
M6 ETX II: Moody's Puts 'B2' CFR Under Review for Upgrade
MACADAMIA BEAUTY: Hires Elliott Thomason & Gibson as Counsel
MAINE CRAFT: Case Summary & 20 Largest Unsecured Creditors
MARINA DEL RAY: Seeks Chapter 11 Bankruptcy in Texas
MEMPHIS CARPET: Seeks to Tap Toni Campbell Parker as Legal Counsel
MERCURY INVESTMENTS: Court OKs Deal to Use Cash Collateral
META MATERIALS: Bankruptcy Auction Set for April 3 in California
MIDSTATE BASEMENT: Gets Extension to Access Cash Collateral
MIRACLE RESTAURANT: Gets OK to Use Cash Collateral Until April 16
MIS INTERMEDIATE: S&P Assigns 'B' ICR on Announced Combination
MISS BRENDA: Case Summary & One Unsecured Creditor
MITEL NETWORKS: Moody's Cuts CFR to C Following Bankruptcy Filing
MJM LANDSCAPE: Court Extends Cash Collateral Access to April 30
MLN US HOLDCO: Seeks to Hire Stretto as Claims and Noticing Agent
MMA LAW FIRM: Reaches Ch. 11 Deal with Equal Access Justice Fund
MMK FAMILY: Gets Extension to Access Cash Collateral
MMK SUBS: Gets Extension to Access Cash Collateral
MZS PROPERTIES: Gets OK to Use Cash Collateral Until April 30
NAVEO INC: Court Extends Cash Collateral Access to April 19
NEDDY LLC: Court Extends Cash Collateral Access to April 30
NORTHVOLT AB: Advances Talks to Ensure Ongoing Operations
OMEGA THERAPEUTICS: Seeks to Hires Ordinary Course Professionals
ORANGE TUMBLER: Gets OK to Use Cash to Pay U.S. Trustee Fees
OTB HOLDING: Shuts Down 77 Locations After Chapter 11 Filing
OTB HOLDING: U.S. Trustee Appoints Creditors' Committee
OWENS AND MINOR: S&P Rates New Senior Secured Term Loan 'BB-'
PALLET CONSULTANTS: Hires McDowell Law PC as Bankruptcy Counsel
PALOMAR HEALTH: Fitch Lowers IDR to 'B-', Outlook Negative
PBF HOLDING: Fitch Alters Outlook on 'BB' LongTerm IDR to Negative
PBF HOLDING: Moody's Rates New $750MM Senior Unsecured Notes 'Ba3'
PELICAN INTERNATIONAL: Chapter 15 Case Summary
PERFORMANCE MOBILE: Seeks Subchapter V Bankruptcy in Colorado
PHB 2023: Seeks to Hire Spain & Gillon as Bankruptcy Counsel
PHCV4 HOMES: To Sell 15 Single-Family Homes to Chips-Foxwood Farms
PHVC4 HOMES: To Sell 19 Single-Family Homes to CHIPS-Amberley
PICCARD PETS: Plan Exclusivity Period Extended to March 31
POPELINO'S TRANSPORTATION: Seeks Chapter 11 Bankruptcy
POTTSVILLE OPERATIONS: Plan Exclusivity Period Extended to April 13
PREMIER TILLAGE: Seeks Chapter 11 Bankruptcy in Kansas
PROSOURCE MACHINERY: Hires Wadsworth Garber Warner as Counsel
PROSOURCE MACHINERY: Seeks to Hire Neil Goldstein as CRO
QXC COMMUNICATIONS: Taps Shraiberg Page as Bankruptcy Co-Counsel
READYMAX INC: Unsecureds to Get 1 Cent on Dollar in Plan
RIVERSIDE MILITARY: Fitch Cuts Rating on 2017 Refunding Bonds to D
ROMAN BUILDERS: Case Summary & 20 Largest Unsecured Creditors
ROTM LOFTS: Gets Final Approval to Use Cash Collateral
RUNWAY TOWING: Seeks to Tap Shenwick & Associates as Legal Counsel
SALUS MEDICAL: Trustee Seeks to Hire Michael W. Carmel as Counsel
SANTA PAULA HAY: Seeks Chapter 11 Bankruptcy in California
SC HEALTHCARE: Seeks to Extend Plan Exclusivity to September 22
SCANROCK OIL & GAS: Royalty Interest Owners Want Official Committee
SCHILLER PARK: Hires Marcus & Millichap as Real Estate Broker
SCHILLER PARK: Seeks to Hire Bach Law Offices Inc. as Attorney
SEA WEST: Case Summary & One Unsecured Creditor
SHERWOOD HOSPITALITY: U.S. Trustee Unable to Appoint Committee
SHINE SOLAR: Seeks Chapter 11 Bankruptcy in Arkansas
SILAS ENTERPRISE: Seeks to Hire Crane Financial as Accountant
SILVER AIRWAYS: Seeks to Hire Damian Valori Culmo as Local Counsel
SILVER AIRWAYS: Seeks to Hire Smith Gambrell & Russell as Attorney
SMITH ENVIRONMENTAL: Hires Wadsworth Garber Warner as Counsel
SNP ENTERPRISES: Seeks to Sell Tinton Falls Property
SOLEPLY LLC: Case Summary & 20 Largest Unsecured Creditors
SOLEPLY LLC: Seeks Chapter 11 Bankruptcy in New Jersey
SONDER COUNSELING: Seeks to Hire Carmody MacDonald as Counsel
SOUTH REGENCY: U.S. Trustee Appoints Creditors' Committee
SPIRIT AIRLINES: S&P Ups ICR to 'CCC+' on Bankruptcy Emergence
SPRING EDUCATION: Moody's Affirms 'B3' CFR, Outlook Remains Stable
STOLI GROUP: Seeks to Extend Plan Exclusivity to June 25
STRAITLINE WELL: Seeks Chapter 11 Bankruptcy in Texas
SUMMIT MIDSTREAM: S&P Affirms 'B+' ICR, Outlook Stable
SUNOCO LP: S&P Rates New $750MM Senior Unsecured Notes 'BB+'
TEAM MUV FITNESS: U.S. Trustee Unable to Appoint Committee
TETRAD ENTERPRISES: Seeks to hire WVS Law as Bankruptcy Counsel
TEXAS SOLAR: Seeks Court Approval to Hire Mel T. Davis as Broker
TEZCAT LLC: Seeks Subchapter V Bankruptcy in Florida
THOMPSON PARK: S&P Assigns BB- (sf) Rating on Class E-R Notes
TITANIUM HOLDINGS: Case Summary & Three Unsecured Creditors
TROLL ENTERPRISES: Seeks to Hire Five Star Real Estate as Realtor
US 24 TRUCK: Seeks to Tap Kroger, Gardis & Regas as Legal Counsel
VISION2SYSTEMS LLC: NorthRidge Church Appointed to Creditors Panel
VISTA PARTNERS: Seeks to Sell Newood Assets at Auction for $100K
WASH MULTIFAMILY: S&P Affirms 'B-' ICR on Continued Deleveraging
WATER ENERGY: Case Summary & 20 Largest Unsecured Creditors
WATER ENERGY: Seeks Chapter 11 Bankruptcy in Texas
WEX INC: Fitch Corrects Feb. 25 Ratings Release
WILLIAMS SCOTSMAN: Fitch Gives BB-(EXP) Rating to $500MM Sec. Notes
WILLSCOT HOLDINGS: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
WILLSCOT HOLDINGS: Moody's Rates New Senior Secured Notes 'B2'
WINDRIDGE A2A: Seeks Chapter 11 Bankruptcy in Texas
WMB HOLDINGS: Moody's Affirms B1 CFR & Alters Outlook to Positive
WYATT RESTAURANT: Unsecureds Owed $920K to Get 2% over 3 Years
WYNN TEC: Case Summary & 20 Largest Unsecured Creditors
WYNN TEC: Seeks Chapter 11 Bankruptcy in Pennsylvania
XPLR INFRASTRUCTURE: S&P Rates Senior Unsecured Notes 'BB'
YOUNG MEN'S CHRISTIAN: Taps Brand Blackwell as Accountant
*********
1031 SOLUTIONS: Seeks to Hire Levene Neale Bender as Legal Counsel
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1031 Solutions LLC seeks approval from the U.S. Bankruptcy Court
for the U.S. Bankruptcy Court for the Central District of
California to hire Levene, Neale, Bender, Yoo & Golubchik L.L.P. as
its bankruptcy counsel.
The firm's services include:
a. advising the Debtor concerning the requirements of the
Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules, and the Office
of the United States Trustee as they pertain to the Debtor and
interacting with and cooperating with any committee appointed in
the Debtor's bankruptcy case;
b. advising the Debtor concerning certain rights and remedies
of its bankruptcy estate and the rights, claims, and interests of
creditors;
c. representing the Debtor in any proceeding or hearing in the
Bankruptcy Court involving its estate unless the Debtor is
represented in such proceeding or hearing by other special
counsel;
d. conducting examinations of witnesses, claimants or adverse
parties and representing the Debtor in any adversary proceeding
except to the extent that any such adversary proceeding is in an
area outside of LNBYG's expertise or which is beyond LNBYG's
staffing capabilities;
e. preparing and assisting the Debtor in the preparation of
reports, applications, pleadings and orders including, but not
limited to, applications to employ professionals, interim
statements and operating reports, initial filing requirements,
schedules and statement of financial affairs, lease pleadings, cash
collateral pleadings, financing pleadings, and pleadings with
respect to the Debtor's use, sale or lease of property outside the
ordinary course of business;
f. representing the Debtor with regard to obtaining use of
debtor in possession financing and/or cash collateral including,
but not limited to, negotiating and seeking Bankruptcy Court
approval of any debtor in possession financing and/or cash
collateral pleading or stipulation and preparing any pleadings
relating to obtaining use of debtor in possession financing and/or
cash collateral;
g. assisting the Debtor in any asset sale process;
h. assisting the Debtor in the negotiation, formulation,
preparation and confirmation of a plan of reorganization and the
preparation and approval of a disclosure statement in respect of
the plan; and
i. performing any other services which may be appropriate in
LNBYG's representation of the Debtor during its bankruptcy case.
The firm will be paid at these rates:
Attorneys $550 to $750 per hour
Paraprofessionals $300 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
Prior to the Petition Date, the Debtor paid the total sum of
$77,000 to the firm, which constituted a pre-bankruptcy retainer.
Gary Klausner, Esq., a partner at Levene, disclosed in a court
filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Gary E. Klausner, Esq.
Jeffrey S. Kwong, Esq.
LEVENE, NEALE, BENDER, YOO & GOLUBCHIK LLP
2818 La Cienega Ave.
Los Angeles, CA 90034
Tel: (310) 229-1234
Email: gek@lnbyg.com
Email: jsk@lnbyg.com
About 1031 Solutions LLC
1031 Solutions LLC is a real estate investment firm located in Los
Angeles, CA, specializing in helping clients execute 1031 exchanges
to defer capital gains taxes. The Company is committed to offering
tailored and effective solutions, guiding investors through the
intricacies of tax-deferred exchanges to enhance their real estate
portfolios.
1031 Solutions LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11378) on February
24, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Julia W. Brand handles the case.
The Debtor is represented by Gary E. Klausner, Esq. at LEVENE,
NEALE, BENDER, YOO & GOLUBCHIK L.L.P.
13007 YUKON AVENUE: Seeks to Hire Lesnick Prince Pappas as Counsel
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13007 Yukon Avenue, Hawthorne, LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Central District of
California to employ Lesnick Prince Pappas & Alverson LLP as
bankruptcy counsel.
The firm will provide the following services:
(a) advise the Debtors regarding their rights,
responsibilities, powers and duties in the continued management and
operation of their business and properties;
(b) advise the Debtors with respect to the rights and remedies
of their bankruptcy estates and the rights, claims and interests of
creditors and other parties in interest;
(c) represent the Debtors in all hearings and proceedings in
the Bankruptcy Court involving their estates, and in all related
meetings and negotiations with representatives of the creditors and
other parties in interest;
(d) take all necessary action to protect and preserve the
Debtors' estates;
(e) take any necessary action on behalf of the Debtors to
negotiate, prepare on behalf of the Debtors and obtain approval of
Chapter 11 plans and all related documents;
(f) prepare employment and fee applications for
professionals;
(g) prepare and file or furnish all pleadings and other court
filings;
(h) represent the Debtors in connection with obtaining
authorized use of cash collateral;
(i) advise the Debtors in connection with any potential sale
of their assets or business;
(j) appear before the court and any appellate courts to
represent the interest of the Debtors' estates;
(k) object to claims or interests of creditors or other
stakeholders as a situation may necessitate; and
(l) perform all other necessary or otherwise beneficial legal
services for the Debtors in connection with the prosecution of
their Chapter 11 cases.
The firm will be paid at these hourly rates:
Matthew Lesnick, Attorney $695
Christopher Prince, Attorney $695
Lisa Patel, Attorney $425
Janet Mack, Paralegal $255
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the total amount of $106,952 from
the Debtors.
Mr. Lesnick disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Matthew Lesnick, Esq.
Lesnick Prince & Pappas LLP
315 W. Ninth Street, Suite 705
Los Angeles, CA 90015
Telephone: (213) 493-6496
Facsimile: (213) 493-6596
Email: matt@lesnickprince.com
About 13007 Yukon Avenue, Hawthorne LLC
13007 Yukon Avenue, Hawthorne LLC is a single asset real estate
debtor, as defined in 11 U.S.C. Section 101(51B)).
13007 Yukon Avenue, Hawthorne LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10880) on
February 3, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Barry Russell handles the case.
Matthew Lesnick, Esq., at Lesnick Prince & Pappas LLP serves as the
Debtor's counsel.
1800 CORDON ROAD: Seeks to Hire Acuity Forensics as Accountant
--------------------------------------------------------------
1800 Cordon Road, LLC filed an amended application seeking approval
from the U.S. Bankruptcy Court for the District of Oregon to hire
Acuity Forensics as its chapter 11 accountant.
The Debtor proposes to engage Acuity for purposes of accounting
work and monthly operating reports, financial advice, helping
structure a chapter 11 plan and drafting a disclosure statement and
plan as well as advising on alternatives, and, accounting and
financial advice on additional issues related to bankruptcy that
arise.
The proposed rate of compensation is $525 per hour.
Tiffany Couch, a partner at Acuity Forensics, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Tiffany R. Couch
Acuity Forensics
1115 Esther Street, Suite C
Vancouver, WA 98660
Tel: (360) 573-5158
Fax: (360) 571-0183
Email: tcouch@acuityforensics.com
About 1800 Cordon Road
1800 Cordon Road, LLC is a single asset real estate debtor as
defined in 11 U.S.C. Section 101(51B).
1800 Cordon Road filed Chapter 11 petition (Bankr. D. Ore. Case No.
25-60335) on February 5, 2025, listing between $1 million and $10
million in both assets and liabilities.
Joseph A. Field, Esq. at Field Jerger, LLP represents the Debtor as
counsel.
1800 CORDON: Seeks to Hire Acuity Forensics as Accountant
---------------------------------------------------------
1800 Cordon Road LLC filed an amended application seeking approval
from the U.S. Bankruptcy Court for the District of Oregon to hire
Acuity Forensics as an accountant.
The Debtor proposes to engage Acuity for purposes of accounting
work and monthly operating reports, financial advice, helping
structure a Chapter 11 plan and drafting a disclosure statement and
plan as well as advising on alternatives; and accounting and
financial advice on additional issues related to bankruptcy that
arise.
The proposed rate of compensation for Tiffany Couch, CPA/CFF, CFE,
principal accountant for this matter, is $525 per hour.
Acuity is a disinterested person within the meaning of Section
101(4) of the Bankruptcy Code and does not represent or hold any
interest adverse to the interests of the estate or of any class of
creditors or equity security holders, according to court filings.
The firm can be reached through:
Tiffany Couch, CPA/CFF, CFE
Acuity Forensics
701 McClellan Rd
Vancouver, WA 98661
Phone: (360) 573-5158
About 1800 Cordon Road LLC
1800 Cordon Road LLC is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
1800 Cordon Road LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Or. Case No. 25-60335) on February 5,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by Joseph A. Field, Esq. at FIELD JERGER
LLP.
220 FTL-LTPJ: Plan Exclusivity Period Extended to April 14
----------------------------------------------------------
Judge Peter D. Russin of the U.S. Bankruptcy Court for the Southern
District of Florida extended 220 FTL-LTPJ LLC's exclusive periods
to file a plan of reorganization and obtain acceptance thereof to
April 14 and June 13, 2025, respectively.
As shared by Troubled Company Reporter, more time is needed to
resolve issues in this case due to the largest creditor Wells Fargo
Bank taking so much time to get back and forth in negotiations.
For example, cash collateral was agreed to January 8, 2025, but the
parties were unable to settle an order for cash collateral and
adequate protection as of this date, necessitating another hearing
February 27, 2025, at 3PM. Additionally negotiations for a global
resolution of the case have likewise been extended.
The Debtor explains that the company and Creditor have been
negotiating toward a consensual plan, but additional time is needed
due to the time it takes the bank to respond.
220 FTL-LTPJ, LLC is represented by:
Joel M. Aresty, Esq.
Stiberman Law P.A.
309 1st Ave S
Tierra Verde FL 33715
Phone: 305-904-1903
Fax: 1-800-559-1870
E-mail: Aresty@Mac.com
About 220 FTL-LTPJ
220 FTL-LTPJ, LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-21022) on October 24,
2024. In the petition filed by Irene Marciano, as authorized
signatory, the Debtor reports estimated assets between $100,000 and
$500,000 and estimated liabilities between $1 million and $10
million.
Judge Peter D. Russin handles the case.
The Debtor is represented by Robert A. Stiberman, Esq., at
Stiberman Law, P.A.
2281 CHURCH AVENUE: Taps Jackie Henry Realty as Real Estate Broker
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2281 Church Avenue, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Jackie Henry
Realty, LLC as real estate broker.
The firm will market and sell the Debtor's real property located at
2281 Church Avenue, Brooklyn, New York 11226.
Henry Realty will receive a commission of 4 percent of the sale
price of the Church Avenue Property.
As disclosed in the court filings, Jackie Henry Realty does not
hold any interest adverse to the Debtor's estate, and it is a
"disinterested person" as that term is defined in Sec. 101(14) of
the Bankruptcy Code.
The broker can be reached through:
Jacqueline Henry-Thompson
Jackie Henry Realty, LLC
280 Route 211 East, Suite 7
Middletown, NY 10940
Phone: (845) 249-8088
About 2281 Church Avenue
2281 Church Avenue, LLC is the fee simple owner of two properties
in Brooklyn, N.Y., with a total value of $5.5 million.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-43449) on August 19,
2024, with $5,504,200 in assets and $2,437,642 in liabilities.
Oswald C. David, president, signed the petition.
Judge Jil Mazer-Marino oversees the case.
The Debtor tapped Kamini Fox, Esq., at Kamini Fox, PLLC as
bankruptcy counsel and Schwartz, Conroy & Hack, PC and Arnold E.
DiJoseph, PC as special counsel.
2835 OCTAVIA: Case Summary & Two Unsecured Creditors
----------------------------------------------------
Debtor: 2835 Octavia LLC
555 Innes Ave # 408
San Francisco, CA 94124
Business Description: 2835 Octavia is a single asset real estate
debtor, as defined in 11 U.S.C. Section
101(51B).
Chapter 11 Petition Date: March 19, 2025
Court: United States Bankruptcy Court
Northern District of California
Case No.: 25-30213
Judge: Hon. Dennis Montali
Debtor's Counsel: Matthew D. Metzger, Esq.
BELVEDERE LEGAL, PC
1777 Borel Place, Suite 314
San Mateo, CA 94402
Tel: 415-513-5980
Fax: 415-513-5985
E-mail: info@belvederelegal.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Tony M. Gundogdu as managing member.
A complete copy of the petition, which contains a list of the
Debtor's two unsecured creditors, can be accessed for free on
PacerMonitor at:
https://www.pacermonitor.com/view/BGTIYSQ/2835_Octavia_LLC__canbke-25-30213__0001.0.pdf?mcid=tGE4TAMA
323 SOUTH: Seeks to Tap Solomon Rosengarten as Legal Counsel
------------------------------------------------------------
323 South 7th, LLC seeks approval from the U.S. Bankruptcy Court
for the District of New Jersey to employ Solomon Rosengarten, Esq.,
an attorney practicing in Brooklyn, New York, as its counsel.
The firm will provide all legal services in connection with the
preparation and filing of papers, court appearance, appearance at
meeting of creditors, and negotiations.
The attorney will be compensated at an hourly rate of $500 and will
receive a retainer of $7,500 from the Debtor.
Mr. Rosengarten disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The attorney can be reached at:
Solomon Rosengarten, Esq.
2329 Nostrand Ave.
Brooklyn, NY 11210
Telephone: (917) 859-3096
About 323 South 7th LLC
323 South 7th LLC is a a Newark, New Jersey-based real estate
company.
323 South 7th LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 25-10140) on January 6,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Solomon Rosengarten, Esq., represents the Debtor as counsel.
3784 LLC: 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 3784 LLC, according to court dockets.
About 3784 LLC
3784 LLC owns two properties: one located at 1934 22nd Ave, Vero
Beach, Fla., valued at $4.1 million, and another at 1550 Nectarine
Street, Fernandina Beach, FL 32034, valued at $6.6 million.
3784 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. Case No. 25-11569) on February 14, 2025. In its
petition, the Debtor reports total assets of $10,726,000 and total
liabilities of $6,243,947.
Honorable Bankruptcy Judge Scott M. Grossman handles the case.
Brian K. McMahon, PA serves as the Debtor's counsel.
3RP RECYCLING: Seeks to Hire Keech Law Firm as Bankruptcy Counsel
-----------------------------------------------------------------
3RP Recycling, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Arkansas to employ Keech Law Firm, PA
as counsel.
The firm will render these services:
(a) represent the Debtor with regard to the filing of Chapter
11 petitions, schedules, and in the prosecution of its Chapter 11
case with respect to Debtor's powers and duties; and
(b) perform all legal services for the Debtor which may be
necessary in connection with its Chapter 11 case.
The firm will be paid at these hourly rates:
Kevin Keech, Attorney $400
Paralegals $150
Legal Assistants $125
The firm received a retainer of $23,000 from the Debtor.
Mr. Keech disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Kevin P. Keech, Esq.
Keech Law Firm, P.A.
Amity, AR 71921
Telephone: (501) 221-3200
Facsimile: (501) 221-3201
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.
Kevin P. Keech, Esq., at Keech Law Firm, P.A. serves as the
Debtor's counsel.
66FGP LLC: Case Summary & Three Unsecured Creditors
---------------------------------------------------
Debtor: 66FGP LLC
66 Fort Greene Place
Brooklyn, NY 11217
Business Description: 66FGP LLC is the sole owner of the property
located at 25 Mountain Avenue, West Orange,
NJ 07052, which is worth an estimated $1.8
million.
Chapter 11 Petition Date: March 18, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-41257
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Julio E. Portilla, Esq.
JULIO E. PORTILLA
380 Lexington Ave. 4th Floor
New York, NY 10168
Tel: (212) 365-0292
Fax: (212) 365-4417
E-mail: jp@julioportillalaw.com
Total Assets: $1,800,600
Total Liabilities: $1,757,130
The petition was signed by Anthony Williams as member.
A complete copy of the petition, which contains a list of the
Debtor's three unsecured creditors, can be accessed for free on
PacerMonitor at:
https://www.pacermonitor.com/view/RTYR7EI/66FGP_LLC__nyebke-25-41257__0001.0.pdf?mcid=tGE4TAMA
7Q59 AMHERST: Seeks Subchapter V Bankruptcy in Massachusetts
------------------------------------------------------------
On March 17, 2025, 7Q59 Amherst LLC filed Chapter 11 protection in
the U.S. Bankruptcy Court for the District of Massachusetts.
According to court filing, the Debtor reports $1,688,753 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About 7Q59 Amherst LLC
7Q59 Amherst LLC owns two properties: a 12-unit apartment building
located at 1-23 Eastern Avenue, Northampton, MA, and a
single-family rental home located at 11 South Whitney Street,
Amherst, MA.
7Q59 Amherst LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-30150) on
March 17, 2025. In its petition, the Debtor reports total assets of
$2,542,000 and total liabilities of $1,688,753
Honorable Bankruptcy Judge Elizabeth D. Katz handles the case.
The Debtor is represented by:
Louis S. Robin, Esq.
LAW OFFICES OF LOUIS S. ROBIN
1200 Converse Street
Longmeadow, MA 01106-1760
Tel: (413) 567-3131
Fax: (413) 565-3131
Email: louis.robin@prodigy.ne
901 S. LA BREA: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The U.S. Trustee for Region 16 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of 901 S. La Brea Ave, LLC.
About 901 S. La Brea Ave. LLC
901 S. La Brea Ave LLC owns two properties: a commercial building
at 901 S La Brea Ave, Inglewood, CA 90301-3815, which hosts a
Domino's Pizza franchise, and another commercial building at 925 S
La Brea Ave, Inglewood, CA 90301-3815.
901 S. La Brea Ave LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10504 on February 27,
2025. In its petition, the Debtor reports total assets of
$6,540,799 and total liabilities of $4,727,292.
Honorable Bankruptcy Judge Scott C. Clarkson handles the case.
The Debtor is represented by:
Michael R. Totaro, Esq.
TOTARO & SHANAHAN, LLP
PO Box 789
Pacific Palisades CA 90272
Tel: (310) 804-2157
Email: Ocbkatty@aol.com
9029 NEW YORK: Seeks Approval to Tap Low & Low as Legal Counsel
---------------------------------------------------------------
9029 New York Avenue, LLC seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to employ Low & Low LLC as its
counsel.
The firm will render these services:
(a) prepare petition and schedule, all pleadings;
(b) appear in court;
(c) meet with accountants and creditors; and
(d) prepare a plan of reorganization.
The firm will be paid an hourly rate of $650 and will receive a
retainer of $10,000 from the Debtor.
Russell Low, Esq., an attorney at Low & Low, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Russell L. Low, Esq.
Low & Low, LLC
505 Main St., Suite 304
Hackensack, NJ 07601
Telephone: (201) 343-4040
About 9029 New York Avenue LLC
9029 New York Avenue LLC is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
9029 New York Avenue LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 25-11485) on February 14,
2025. In its petition, the Debtor reports estimated assets between
$1 million and $10 million and estimated liabilities between
$500,000 and $1 million.
Russell L. Low, Esq., at Low & Low, LLC serves as the Debtor's
counsel.
A/C DUCTOLOGIST: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: The A/C Ductologist, LLC
4700 SW 83 Terr # 2
Davie, FL 33328
Business Description: Founded in 2015, The A/C Ductologist is a
Florida-based HVAC contractor, specializing
in duct replacement and repair, air
conditioning installation and maintenance,
and indoor air quality assessments for both
residential and commercial clients.
Additionally, it offers insulation
installation services for homes.
Chapter 11 Petition Date: March 19, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 25-12944
Judge: Hon. Peter D Russin
Debtor's Counsel: Zach B. Shelomith, Esq.
LSS LAW
2699 Stirling Rd # C401
Fort Lauderdale, FL 33312
Tel: (954) 920-5355
E-mail: zbs@lss.law
Total Assets: $433,330
Total Liabilities: $1,891,442
The petition was signed by Thomas Mouradian 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/EAXBE2Q/The_AC_Ductologist_LLC__flsbke-25-12944__0001.0.pdf?mcid=tGE4TAMA
ABP AVENTURA: Seeks Subchapter V Bankruptcy in Florida
------------------------------------------------------
On March 18, 2025, ABP Aventura Inc. filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Southern District of Florida.
According to court filing, the Debtor reports $1,704,840 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About ABP Aventura Inc.
ABP Aventura Inc., operating under the name Relax The Back,
specializes in ergonomic products aimed at alleviating neck and
back pain. The Company offers items like ergonomic office
furniture, Tempur-Pedic mattresses, fitness tools, and massage
products. With over 70 stores in North America and its website
RelaxTheBack.com, the Company combines personalized service with a
holistic wellness approach.
ABP Aventura Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12901) on March 18,
2025. In its petition, the Debtor reports total assets of
$3,358,190 and total liabilities of $1,704,840.
Honorable Bankruptcy Judge Laurel M. Isicoff handles the case.
The Debtor is represented by:
David R. Softness, Esq.
DAVID R. SOFTNESS, PA
201 South Biscayne Boulevard Suite 2740
Miami, FL 33131
Tel: 305-341-3111
E-mail: david@softnesslaw.com
ACCORD LEASE: Court Extends Cash Collateral Access to April 18
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
issued a sixth interim order extending Accord Lease, Inc.'s
authority to use its lenders' cash collateral from March 14 to
April 18.
The interim order signed by Judge Deborah Thorne authorized the
company to use the cash collateral of BMO Bank N.A, and 11 other
lenders to pay the operating expenses set forth in the budget,
which outlines the company's projected monthly expenses of
$119,202.58.
As adequate protection for the use of their cash collateral, the
lenders were granted replacement liens on the company's
post-petition assets.
The next hearing is set for April 16.
About Accord Lease Inc.
Accord Lease Inc. operates an automotive leasing and renting
business in Elgin, Ill.
Accord Lease filed Chapter 11 petition (Bankr. N.D. Ill. Case No.
24-16518) on November 1, 2024, listing total assets of $3,773,857
and total liabilities of $5,800,404. Igor Tsapar, president of
Accord Lease, signed the petition.
Judge David D. Cleary handles the case.
The Debtor is represented by:
O. Allan Fridman, Esq.
Law Office Of O. Allan Fridman
Tel: 847-412-0788
Email: allanfridman@gmail.com
ADVANTACLEAN OF METRO: Sec. 341(a) Meeting of Creditors on April 15
-------------------------------------------------------------------
On March 13, 2025, AdvantaClean of Metro New Orleans LLC filed
Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern
District of Louisiana. 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 not be
available to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on April 15,
2025 at 02:00 PM by Telephone Conference Line: 866-790-6904.
Participant Passcode: 3156784.
About AdvantaClean of Metro New Orleans LLC
AdvantaClean of Metro New Orleans LLC is a provider of mold
remediation, water damage restoration, air duct cleaning, and
moisture management services for both homes and businesses. With an
emphasis on fostering healthier living spaces, the Company offers
solutions for problems such as flooding, mold issues, and crawl
space sealing. As a locally owned and managed business,
AdvantaClean is dedicated to offering professional, dependable, and
top-quality services to the New Orleans area.
AdvantaClean of Metro New Orleans LLC sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No.: 25-10439)
on March 13, 2025. In its petition, the Debtor reports estimated
assets up to $50,000 ad estimated liabilities between $1 million to
$10 million.
Honorable Bankruptcy Judge Meredith S. Grabill handles the case.
The Debtor is represented by:
Ryan J. Richmond, Esq.
STERNBERG, NACCARI & WHITE, LLC
450 Laurel Street, Suite 1450
Baton Rouge, LA 70801
Tel: (225) 412-3667
Email: ryan@snw.law
AFH AIR: Seeks Chapter 11 Bankruptcy in Georgia, To Sell Assets
---------------------------------------------------------------
Claudia Dimuro of Patriotic News reports that the parent company of
a major HVAC service provider has filed for bankruptcy and plans to
sell its assets to address its multimillion-dollar debt.
AFH Air Pros Solutions, LLC, the parent company of Air Pros, filed
for voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court
for the Northern District of Georgia, according to a claim
published by Verita Global (formerly Kurtzman Carson Consultants,
LLC).
TheStreet reports that AFH Air Pros Solutions has listed assets and
liabilities ranging from $100 million to $500 million. The company
owes more than $250 million on a pre-petition secured credit
facility dated October 31, 2022, along with an additional $45
million in general unsecured debt.
"After conducting an extensive review of strategic alternatives,
the Company determined that these transactions represent the best
path forward and are in the best interests of all customers,
employees, and stakeholders," said Andrew Hede, Chief Restructuring
Officer of Air Pros, in a press release. "As we move through the
sales process, our top priority remains the continued delivery of
reliable and comprehensive HVAC, electrical, and plumbing services
to our valued and longstanding customer base."
"All business units will continue to operate as usual throughout
this process and will be sold as going concerns. We extend our
gratitude to the entire Air Pros team for their dedication and to
our business partners for their continued support."
The company's website lists locations in Colorado, Florida, Texas,
Washington, and other states. Further details about the bankruptcy
and potential store closures are yet to be announced.
About AFH Air Pros LLC
Founded in 2017 in Fort Lauderdale, Florida, Air Pros is a
professional home services provider specializing in HVAC
installation, repair, maintenance, and air quality solutions for
residential and commercial clients. Air Pros also offer plumbing,
electrical services, and home warranties at certain locations. Air
Pros, which began with one vehicle and two employees, now operates
over 600 vehicles, employs more than 700 people, and serves
customers in eight states: Florida, Georgia, Alabama, Mississippi,
Louisiana, Texas, Colorado, and Washington.
AFH Air Pros, LLC, and 19 of its affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. N.D. Ga.) on March 16, 2025, listing estimated assets of
$100 million to $500 million, and estimated liabilities of $100
million to $500 million. The petitions were signed by by Andrew
D.J. Hede as chief restructuring officer.
Judge Paul Baisier presides over the case.
David B. Kurzweil, Esq. and Matthew A. Petrie, Esq., at Greenberg
Traurig LLP, represent the Debtor as counsel.
ACCORDION PARTNERS, LLC serves as the Debtor's financial advisor.
JEFFERIES LLC services as the Debtor's investment banker.
KURTZMAN CARSON CONSULTANTS, LLC and DBA VERITA GLOBAL serve as the
Debtor's notice, claims & balloting agent and administrative
advisor.
AFTERSHOCK COMICS: Court Extends Cash Collateral Access to March 31
-------------------------------------------------------------------
AfterShock Comics, LLC and Rive Gauche Television received another
extension from the U.S. Bankruptcy Court for the Central District
of California, San Fernando Valley Division to use cash
collateral.
The order signed by Judge Martin Barash approved the companies'
agreement with the Access Road Capital, LLC and the official
committee of unsecured creditors, authorizing the use of cash
collateral for the period from Jan. 31 to March 31 to pay the
expenses set forth in the companies' budget.
Access Road Capital is represented by:
Andrew D. Behlmann, Esq.
Lowenstein Sandler LLP
One Lowenstein Drive
One Lowenstein Drive
Roseland, NJ 07068
Tel: +1 973.597.2332/973.597.2500
Fax: +1 973.597.2333/973.597.2400
abehlmann@lowenstein.com
About AfterShock Comics
AfterShock Comics, LLC -- https://Aftershockcomics.com -- is an
American comic book publisher launched in 2015. The company is
based in Sherman Oaks, Calif. AfterShock Comics and affiliate Rive
Gauche Television filed petitions for relief under Chapter 11 of
the Bankruptcy Code (Bankr. C.D. Calif. Lead Case No. 22-11456) on
Dec. 19, 2022.
Judge Martin R. Barash oversees the cases.
At the time of filing, AfterShock Comics reported $10 million to
$50 million in both assets and liabilities while Rive Gauche
reported $50 million to $100 million in assets and $10 million to
$50 million in liabilities.
The Debtors are represented by David L. Neale, Esq., at Levene,
Neale, Bender, Yoo & Golubchik L.L.P.
The U.S. Trustee for Region 16 appointed two separate committees to
represent unsecured creditors in the Chapter 11 cases of AfterShock
Comics, LLC and Rive Gauche Television.
AIR PROS: Files Chapter 11 to Sell All Businesses as Going Concerns
-------------------------------------------------------------------
Air Pros Solutions, LLC, which operates a portfolio of HVAC,
electrical, and plumbing businesses across the U.S., announced on
March 17, 2025, that it has entered into six separate asset
purchase agreements to sell all of its businesses as going
concerns.
To facilitate the sales in an orderly and efficient manner, Air
Pros has commenced voluntary chapter 11 cases in the U.S.
Bankruptcy Court for the Northern District of Georgia. The sales
will be conducted pursuant to section 363 of the U.S. Bankruptcy
Code.
As Air Pros works to complete these sales, the Company and its
business units remain focused on continuing to serve customers,
work with partners, and support employees on an uninterrupted
basis. All of Air Pros' business units will continue to operate as
usual during the sales process.
Andrew Hede, Air Pros' Chief Restructuring Officer, said, "After
conducting an extensive review of its strategic alternatives, the
Company determined that these transactions represent the best path
forward and are in the best interests of all customers, employees,
and other stakeholders. As we move through the sales process, our
number one priority remains the continued provision of reliable and
comprehensive HVAC, electrical, and plumbing services to our valued
and longstanding customer base. Each of our business units will
continue to operate as usual during this process and will be sold
as a going concern. We thank the entire Air Pros team for their
hard work and dedication, as well as our business partners for
their continued support."
As part of the sales process, the proposed purchasers will serve as
"stalking horse" bidders in a court-supervised auction process.
These proposed transactions are subject to higher or otherwise
better bids, Bankruptcy Court approval, and other conditions.
In connection with the court-supervised process, Air Pros has
secured a commitment for $20 million of new financing from its
current lender. Upon Court approval, this DIP Financing and cash
generated from the Company's ongoing operations are expected to
provide more than sufficient liquidity to support the Company while
it works to complete the sales transactions.
The Company has also filed a number of customary motions with the
Bankruptcy Court seeking authorization to support its operations
during the court-supervised process, including authority to pay
wages, provide health and other employee benefits, and continue
existing customer programs. The Company expects to receive Court
approval for these requests in short order. The Company also
expects to pay vendors in full under normal terms for goods
delivered and services provided after the filing date.
Additional information regarding Air Pros' court-supervised sales
process is available at www.airprosrestructuring.com. Court filings
and other information related to the proceedings, including
instructions on how to file a proof of claim, are available on a
separate website administered by the Company's claims agent,
Verita, at https://www.veritaglobal.net/AirPros, by calling
toll-free at (866) 927-7076 (or (310) 751-2650 for calls
originating outside the U.S. or Canada), or by submitting an email
at https://www.veritaglobal.net/AirPros/inquiry.
Advisors
Greenberg Traurig, LLP is serving as legal counsel, Accordion
Partners LLC is serving as Chief Restructuring Officer (Andrew
Hede) and financial advisor to Air Pros, and Jefferies LLC is
serving as investment banker. Joele Frank, Wilkinson Brimmer
Katcher is serving as strategic communications advisor.
About Air Pros
Air Pros USA was founded in South Florida on the promise of
integrity, reliability, and putting our customers first. The
company has quickly expanded to many metro areas within Alabama,
Colorado, Florida, Georgia, Mississippi, Louisiana, Texas, and
Washington. Air Pros USA currently employs more than 1,000
experienced professionals in more than a dozen metro Service
locations including Atlanta, GA, Colorado Springs, CO, Dallas, TX,
Everett, WA, Miami, FL, Mobile, AL, and Orlando, FL. For more
information visit www.airprosusa.com.
ALLSTATE REALTY: Court Extends Cash Collateral Access to June 30
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
San Fernando Valley Division granted the motion allowing Allstate
Realty Group, Inc. to use the cash collateral of its lenders,
Select Portfolio Servicing, Inc. and Smuel Cohen.
The lenders' cash collateral consists of rental income generated
from Allstate's Los Angeles property.
The order signed by Judge Martin Barash authorized the company to
use the rents to pay post-petition expenses set forth in its budget
that are due and payable on or before June 30.
Allstate is allowed to deviate from the total expenses contained in
the budget by no more than 10% and to deviate by category without
the need for further court order or the express written consent of
secured creditors unless it is an emergency.
About Allstate Realty Group
Allstate Realty Group, Inc. filed Chapter 11 petition (Bankr. C.D.
Calif. Case No. 24-11555) on June 7, 2023, with $1 million to $10
million in both assets and liabilities. Joseph Kashki, chief
executive officer of Allstate, signed the petition.
Judge Martin R. Barash oversees the case.
The Debtor is represented by:
Onyinye N. Anyama, Esq.
Anyama Law Firm, A Professional Corp
Tel: 562-645-4500
Email: onyi@anyamalaw.com
ALLSTATE REALTY: Seeks Approval to Tap GA Appraisals as Appraiser
-----------------------------------------------------------------
Allstate Realty Group, Inc. seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ GA
Appraisals Inc. as its appraiser.
The Debtor needs an appraiser to appraise its property located at
247 S. Carmelina Ave., Los Angeles, California.
The firm will be compensated for its testimony of $1,000 per
appearing and an appraisal fee of $500 per hour.
Glen Kangas, owner of GA Appraisals, disclosed in a court filing
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Glen Kangas
GA Appraisals, Inc.
1055 East Colorado Boulevard
Pasadena, CA 91106
About Allstate Realty Group
Allstate Realty Group, Inc. sells retail deck products and installs
teak decking.
Allstate sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Cal. Case No. 1:24-bk-11555) on September 17,
2024, with up to $10 million in both assets and liabilities. Joseph
Kashki, chief executive officer of Allstate, signed the petition.
Judge Martin R. Barash oversees the case.
Onyinye N. Anyama, Esq., at Anyama Law Firm, APC, represents the
Debtor as bankruptcy counsel.
AMERICAN IMPACT: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: American Impact Windows & Doors, LLC
a/k/a American Impact Windows and Roofing
1629 NW 82nd Ave.
Miami, FL 33126
Business Description: American Impact Windows & Doors installs
and replaces impact-resistant windows and
doors for residential and commercial
clients. The Company's products are built
to withstand severe weather, including
hurricanes, making them perfect for the
region's tough climate. The Company offers
easy installations, a variety of window and
door options, and financing plans. It also
provides custom solutions like glass rails
and storefront doors, along with permit
expediting services.
Chapter 11 Petition Date: March 19, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 25-12943
Judge: Hon. Laurel M Isicoff
Debtor's Counsel: Carlos E. Sardi, Esq.
SARDI LAW, PLLC
11410 N. Kendall Dr., Suite 208
Miami, FL 33176
Tel: (305) 697-8690
E-mail: carlos@sardilaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Emil Rosado as chief executive officer.
The Debtor failed to provide a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/H5ZDZ3Y/American_Impact_Windows__Doors__flsbke-25-12943__0001.0.pdf?mcid=tGE4TAMA
AMERICAN TRAILER: Moody's Cuts CFR to Caa1, Outlook Negative
------------------------------------------------------------
Moody's Ratings downgraded the ratings of American Trailer World
Corp. (ATW), including its corporate family rating to Caa1 from B3,
its probability of default rating to Caa1-PD from B3-PD and its
senior secured bank credit facility rating to Caa1 from B3. The
outlook remains negative.
The rating downgrade and negative outlook reflect Moody's
expectations that ATW's leverage will remain very high and interest
coverage will be weak through 2025. The company's earnings have
declined significantly in the face of demand softness in the
broader professional and consumer trailer markets. For 2025,
Moody's expects modest revenue growth and some earnings recovery
from cost saving initiatives to occur. However, Moody's expects
ATW's debt/EBITDA will remain above 8x year end, thus limiting the
company's financial flexibility to absorb any negative
developments. If demand and pricing headwinds in the trailer market
persist, Moody's believes the probability that ATW will need to
undertake a debt restructuring will increase.
Governance was a key consideration for this rating action.
Governance factors including aggressive financial strategies and
risk management practices resulted in very high financial leverage.
The credit impact score was revised to CIS-5 from CIS-4 to reflect
these risks. The CIS-5 indicates that the rating is lower than it
would have been if ESG risk exposures did not exist and that the
negative impact is more pronounced than for issuers scored CIS-4.
RATINGS RATIONALE
ATW's ratings reflect the company's exposure to cyclical end
markets and very high financial leverage, partly a reflection of a
shareholder friendly distribution policy historically. ATW
maintains a leading position as a manufacturer of professional and
consumer grade trailers across a wide variety of end markets (i.e.,
industrial, agriculture, construction, etc.). Broader trailer
demand has been weak since 2022, following a surge in new trailer
purchases in the immediate post-pandemic years. Moody's expects
revenue growth of about 5% in 2025 following a decline of around 8%
in 2024 from lower volumes. Moderate revenue growth should come
from the company's professional trailer and truck equipment
segments while consumer trailer demand will remain soft. Moody's
believes replacement needs for trailers purchased during the
pandemic could improve demand in 2026 and beyond.
Moody's expects ATW's EBITA margin to improve to near 7% in 2025
compared to a low of around 5% in 2024. ATW's margin weakness
resulted from declining operating leverage as well as some price
discounting. Moody's believes ATW will pursue cost saving
initiatives and adjust its cost base to lower manufacturing levels
to improve margins in 2025. Nonetheless, the company's
profitability is expected to remain below historical levels until
volumes recover meaningfully.
Liquidity is expected to remain adequate over the next 12 months.
ATW's liquidity is primarily supported by an ample cash position
and availability under its $250 million ABL expiring 2027. Moody's
believes ATW was able to generate meaningful free cash flow in the
back half of 2024 as it strategically destocked its elevated
inventory position. For 2025, Moody's expects free cash flow to
turn negative as the company will unlikely benefit again from a
similar inventory unwind. Moody's do not anticipate a need for ATW
to borrow under its ABL over the next 12 months. However, Moody's
expects availability to remain somewhat below the $250 million
committed level due to borrowing base limitations. Lastly, ATW has
no significant debt maturities looming and no required debt
amortization following significant debt prepayment in prior years.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if ATW exhibits consistent organic
growth in revenue and earnings. An EBITA margin sustained above 7%,
debt/EBITDA below 6.5x and EBITA/interest expense above 1.5x could
also support a rating upgrade. Lastly, an expectation for
consistently positive free cash flow could result in an upgrade.
The ratings could be downgraded if weak end market demand prevents
ATW from growing revenue and profitability. The ratings could also
be downgraded if free cash flow is increasingly negative and the
company's liquidity weakens. Further, increased risk that the
company may undertake a debt restructuring or a decline in Moody's
estimates of recovery could result in a rating downgrade.
American Trailer World Corp., based in Addison, Texas, is a
manufacturer of professional grade and consumer grade utility
trailers and spare parts in North America. Revenue was
approximately $1.2 billion for the twelve months ended September
30, 2024. The company is majority-owned by funds affiliated with
Bain Capital.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
AMERIGLASS CONTRACTOR: Hires Susan D. Lasky as Bankruptcy Counsel
-----------------------------------------------------------------
Ameriglass Contractor, Corp seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ Susan D.
Lasky, PA as legal counsel.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties in
the continued management of its financial affairs;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents necessary in the administration of
the case;
(d) protect the interest of the Debtor in all matters pending
before the court; and
(e) represent the Debtor in negotiation with its creditors in
the preparation of a Plan.
The firm will be paid at these hourly rates:
Susan Lasky, Attorney $500
Paralegal $250
In addition, the firm will seek reimbursement for expenses
incurred.
Ms. Lasky disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Susan D. Lasky, Esq.
320 S.E. 18th St.
Ft. Lauderdale, FL 33316
Telephone: (954) 400-7474
Email: Sue@SueLasky.com
About Ameriglass Contractor Corp
Ameriglass Contractor Corp. specializes in residential and
commercial glass repair and replacement services in the Fort
Lauderdale, Florida area. The Company offers a range of services,
including window and sliding door repairs, storefront glass
repairs, and high-impact window installations. The Company operates
24/7, providing emergency glass repair services.
Ameriglass Contractor Corp. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12349) on March
4, 2025. In its petition, the Debtor reports total assets of
$423,551 and total liabilities of $1,389,948.
Honorable Bankruptcy Judge Scott M. Grossman handles the case.
Susan D. Lasky, Esq., serves as the Debtor's counsel.
ARTISTIC HOLIDAY: U.S. Trustee Appoints 2 New Committee Members
---------------------------------------------------------------
The U.S. Trustee for Region 21 appointed 508 Operations, LLC and
St. Joseph Placement as new members of the official committee of
unsecured creditors in the Chapter 11 cases of Artistic Holiday
Designs, LLC and Holiday Creations Pro, Inc.
The committee is now composed of:
1. OL USA, LLC
c/o Angel N. Espinoza
265 Post Avenue, Suite 333
Westbury, NY 11590
2. Petal and Company Productions, LLC
c/o Michael Gurl
909 3rd Ave, #1851
New York, NY 10150
3. Peoplelink, LLC
c/o Jackie Pezzuto
431 E. Colfax Ave, Suite 200
South Bend, IN 46617
4. 508 Operations LLC
c/o Zachary Londrico
117 Grattan Street
Brooklyn, NY 11237
5. St. Joseph Placement dba Express Employment
c/o Cathy Robertson
201 CR 17
Elkhart, IN 46516
About Artistic Holiday Designs
Artistic Holiday Designs, LLC is a company in Cape Coral, Fla.,
which specializes in creating holiday lighting displays for both
commercial and public spaces. Its affiliate, Holiday Creations Pro,
Inc., is a full-service holiday lighting company specializing in
the design, installation, maintenance, takedown, and storage of
lighting displays. Holiday Creations Pro caters to both residential
and commercial clients, offering customized solutions.
Artistic Holiday Designs and Holiday Creations Pro filed Chapter 11
petitions (Bankr. M.D. Fla. Lead Case No. 25-00153) on January 29,
2025. At the time of the filing, Artistic Holiday Designs reported
between $1 million and $10 million in assets and between $10
million and $50 million in liabilities.
Judge Caryl E. Delano oversees the cases.
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Michael Dal Lago, Esq., at Dal Lago Law, represents the Debtor as
bankruptcy counsel.
MEP Capital Holdings III, L.P., as secured creditor, is represented
by:
Luis E. Rivera II, Esq.
GrayRobinson, P.A.
1404 Dean Street, Suite 300
Fort Myers, Florida 33901
Phone: 239.254.8460
Email: luis.rivera@gray-robinson.com
AVON PLACE: Seeks Chapter 11 Bankruptcy in New York
---------------------------------------------------
On March 21, 2025, Avon Place LLC filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Eastern District of New York.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Avon Place LLC
Avon Place LLC is a real estate company owning multiple properties
at 44, 46, 47, 48 Avonwood Road in Avon, Connecticut.
Avon Place LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-41368) on March 21,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Jil Mazer-Marino handles the case.
The Debtor is represented by:
Mark A. Frankel, Esq.
Backenroth Frankel & Krinsky, LLP
488 Madison Avenue, Floor 23
New York, NY 10022
Telephone: (212) 593-1100
AVONDALE HOMES: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Avondale Homes, LLC 25-53097
50 Chestnut Ridge Rd
#205
Montvale, NJ 07645
Avondale Homes 2, LLC 25-53098
Kensington Village Apts, LLC 25-53099
Business Description: Avondale Homes is a property lessor engaged
in multiple construction and development
projects throughout the United States.
Chapter 11 Petition Date: March 21, 2025
Court: United States Bankruptcy Court
Northern District of Georgia
Judge: Lisa Ritchey Craig
Debtors' Counsel: William Rountree, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road SUite 350
Atlanta, GA 30329
Tel: 404-584-1238
Email: wrountree@rlkglaw.com
Avondale Homes, LLC's
Estimated Assets: $0 to $50,000
Avondale Homes, LLC's
Estimated Liabilities: $50 million to $100 million
Avondale Homes 2, LLC's
Estimated Assets: $0 to $50,000
Avondale Homes 2, LLC's
Estimated Liabilities: $1 million to 10 million
Kensington Village Apts, LLC's
Estimated Assets: $0 to $50,000
Kensington Village Apts, LLC's
Estimated Liabilities: $50 million to $100 million
The petitions were signed by Samuel Pollak as managing member.
Full-text copies of the petitions are available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/X36RXUY/Avondale_Homes_LLC__ganbke-25-53097__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/6MEA6TI/Avondale_Homes_2_LLC__ganbke-25-53098__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/LGNFBUI/Kensington_Village_Apts_LLC__ganbke-25-53099__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. DeKalb County Watershed Dept Utility Services $1,574,956
774 Jordan Lane Suite 200
Decatur, GA, 30033
2. K C Grading LLC Suppliers or $90,000
2410 Stroud Rd Vendors
Jackson, GA, 30223
3. DeKalb County Sanitation Utility Services $89,598
3720 Leroy Scott Drive
Decatur, GA, 30032
4. A&M General Remodeling Suppliers or $74,651
1397 Cherokee Trail Vendors
Lawrenceville, GA, 30043
5. Brown Industrial Brokers Services $63,210
1400 E Higgins Rd Ste A
Elk Grove Village, IL, 60007
6. Gas South Utility Services $45,936
PO Box 530552
Atlanta, GA, 30353
7. IZMA Construction LLC Suppliers or Vendors $33,020
5933 Old Town Place
Norcross, GA, 30093
8. A1 Quality Property Solutions Suppliers or Vendors $27,932
1795 Ivy Stone Ct
Buford, GA, 30519
9. North Point Management Suppliers or Vendors $26,362
128 Millport Cir Ste. 200
Greenville, SC, 29607
10. Resurgens Security Services $20,528
Services LLC
696 Charlotte Pl NW
Atlanta, GA, 30318
11. Ally Waste Services, LLC Suppliers or Vendors $14,322
325 S. Higley Rd
Gilbert, AZ, 85296
12. Georgia Power Utility Services $14,056
96 Annex
Atlanta, GA, 30396
13. Bedrock Realty Group Services $8,349
3709 Raeford Rd
Fayetteville, NC, 28304
14. Evergreen Waste Corp Services $6,431
PO Box 250
Lawrence, NY, 1155
15. Digible, Inc. Suppliers or Vendors $5,750
Dept #999505
Denver, CO, 80217
16. CSS Services National Suppliers or Vendors $5,351
Eviction Solutions
P.O. Box 451027
Atlanta, GA, 31145
17. Casiano Landscape & Services $5,000
Construction, LLC
1488 Willow Lake Drive Northeast
Norcross, GA, 30093
18. Massey Services Inc. Suppliers or Vendors $4,600
P.O. Box 547668
Orlando, FL, 32854
19. JLM Renovations LLC Suppliers or Vendors $4,525
458 Savannah Rose Way
Lawrenceville, GA, 30045
20. TAM Temporary Apartment Suppliers or Vendors $4,312
Management, Inc
2935 Horizon Park Drive Ste A
Suwanee, GA, 30024
AZZUR GROUP: U.S. Trustee Appoints Creditors' Committee
-------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Azzur
Group Holdings, LLC and its affiliates.
The committee members are:
1. Barker Contracting, Inc.
Attn: Brian Barker
2127 E. Speedway Blvd., Suite 101
Tucson, AZ 85717
Phone: 520-323-3831
Fax: 520-323-3834
Email: BBarker@barkerone.com
2. Southworth-Milton Inc. d/b/a Milton-Cat
Attn: Jacqueline R. Benard
30 Industrial Drive
Londonderry, New Hampshire
Email: Jackie.benard@miltoncat.com
3. Thomas Scientific Inc.
Attn: Anna Walker
1654 High Hill Road
Swedesboro, NJ 08085
Phone: 865-590-3046
Email: Anna.Walker@thomassci.com
4. Shiraz Partners LP
Attn: Benjamin Weiss, Esq.
c/o Badiee Development
888 Prospect At., Suite 240
La Jolla, CA 92037
Phone: 310-770-8727
Email: bweiss@badieedevelopment.com
5. DBCI, Inc.
Attn: Guy Sergi, Esq.
465 Waverly Oaks Road, Suite 500
Waltham, MA 02452
Phone: 781-786-6013
Email: gsergi@duffyproperties.com
6. Controlled Contamination Services, LLC
Attn: Catherine McNealy
14800 Landmark Blvd., Suite 155
Dallas, TX 75254
Phone: 214-220-4804
Email: legal@cleanroomcleaning.com
7. NESPA, Inc.
Attn: Daniel Sarno
208 Broadway
Malden, MA 02148
Phone: 617-322-6372
Email: dsarno@newenglandsecurity.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Azzur Group Holdings
Azzur Group Holdings Pennsylvania-based professional services
company operates across multiple locations including Boston,
Chicago, San Diego, and San Francisco, providing specialized life
sciences services including consulting, laboratory testing,
cleanrooms-on-demand, and technical training services.
Azzur Group Holdings and more than 30 of its affiliates sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del.
Case No. 25-10342) on March 2, 2025. In their petitions, the
Debtors reported estimated assets and liabilities between $100
million and $500 million.
Honorable Bankruptcy Judge Karen B. Owens handles the cases.
DLA Piper LLP represents the Debtors as general bankruptcy counsel.
Ankura Consulting Group LLC serves as restructuring advisor to the
Debtors, Brown Gibbons Lang & Co. Securities Inc. acts as
investment banker, and Stretto Inc. acts as claims and noticing
agent.
B2 UNITED: Seeks Approval to Hire Norred Law as Bankruptcy Counsel
------------------------------------------------------------------
B2 United, LLC doing business as Grab N Go, seeks approval from the
U.S. Bankruptcy Court for the Northern District of Texas to employ
Norred Law PLLC as counsel.
The firm will render these services:
(a) advise the Debtor of its powers and duties in the
management of its property;
(b) attend meetings and negotiate with representatives of
creditors and other parties in interest;
(c) assist the Debtor in preparation of all administrative
documents required to be filed or prepared herein, and prepare, on
behalf of the Debtor, all necessary legal documents as applicable;
(d) take such actions as is necessary to preserve the assets
and interests of the estate;
(e) advise the Debtor in connection with any potential sale of
assets;
(f) assist the Debtor in formulating a disclosure statement,
and in the formulation and confirmation of a plan of
reorganization;
(g) appear before the court and the United States Trustee, and
protect the interest of the Debtor estate before the court and
trustee; and
(h) perform any and all other legal services that may be
necessary to protect the rights and interests of the Debtor in the
proceeding and any actions later commenced in this Chapter 11
case.
The hourly rates of the firm's counsel are as follows:
Attorneys $300 - $525
Paraprofessionals $90 - $120
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $10,000 from the
Debtor.
Clayton Everett, Esq., an attorney at Norred Law, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Clayton L. Everett, Esq.
Norred Law, PLLC
515 E. Border Street
Arlington, TX 76010
Telephone: (817) 704-3984
Email: clayton@norredlaw.com
About B2 United
B2 United, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40492) on February
10, 2025, listing between $100,001 and $500,000 in both assets and
liabilities.
Judge Mark X. Mullin presides over the case.
Norred Law, PLLC represents the Debtor as bankruptcy counsel.
BARSCOTT LLC: Seeks to Hire Levene Neale Bender as Legal Counsel
----------------------------------------------------------------
Barscott LLC seeks approval from the U.S. Bankruptcy Court for the
Central District of California to hire Levene, Neale, Bender, Yoo &
Golubchik L.L.P. as its bankruptcy counsel.
The firm's services include:
a. advising the Debtor with regard to the requirements of the
Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules and the Office
of the United States Trustee as they pertain to the Debtor and
interacting with and cooperating with any committee appointed in
the Debtor's bankruptcy case;
b. advising the Debtor with regard to certain rights and
remedies of its bankruptcy estate and the rights, claims and
interests of creditors;
c. representing the Debtor in any proceeding or hearing in the
Bankruptcy Court involving its estate unless the Debtor is
represented in such proceeding or hearing by other special
counsel;
d. conducting examinations of witnesses, claimants or adverse
parties and representing the Debtor in any adversary proceeding
except to the extent that any such adversary proceeding is in an
area outside of LNBYG's expertise or which is beyond LNBYG's
staffing capabilities;
e. preparing and assisting the Debtor in the preparation of
reports, applications, pleadings and orders including, but not
limited to, applications to employ professionals, interim
statements and operating reports, initial filing requirements,
schedules and statement of financial affairs, lease pleadings, cash
collateral pleadings, financing pleadings, and pleadings with
respect to the Debtor's use, sale or lease of property outside the
ordinary course of business;
f. representing the Debtor with regard to obtaining use of
debtor in possession financing and/or cash collateral including,
but not limited to, negotiating and seeking Bankruptcy Court
approval of any debtor in possession financing and/or cash
collateral pleading or stipulation and preparing any pleadings
relating to obtaining use of debtor in possession financing and/or
cash collateral;
g. assisting the Debtor in any asset sale process;
h. assisting the Debtor in the negotiation, formulation,
preparation and confirmation of a plan of reorganization and the
preparation and approval of a disclosure statement in respect of
the plan; and
i. performing any other services which may be appropriate in
LNBYG's representation of the Debtor during its bankruptcy case.
The firm will be paid at these rates:
Attorneys $550 to $750 per hour
Paraprofessionals $300 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
Prior to the Petition Date, the Debtor paid the total sum of
$52,000 to the firm, which constituted a pre-bankruptcy retainer.
Gary Klausner, Esq., a partner at Levene, disclosed in a court
filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Gary E. Klausner, Esq.
LEVENE, NEALE, BENDER, YOO & GOLUBCHIK LLP
2818 La Cienega Ave.
Los Angeles, CA 90034
Tel: (310) 229-1234
E-mail: GEK@LNBYG.COM
About Barscott LLC
Barscott LLC is engaged in activities related to real estate.
Barscott LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Cal. Case No. 25-10878) on February 4, 2025. In
its petition, the Debtor reports estimated assets and liabilities
between $10 million and $50 million each.
The Debtor is represented by Gary E. Klausner, Esq. at LEVENE,
NEALE, BENDER, YOO & GOLUBCHIK LLP.
BAYSHORE SUITES: 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 Bayshore Suites, LLC, according to court dockets.
About Bayshore Suites LLC
Bayshore Suites LLC 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.
Bayshore Suites LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00218) on February
11, 2025. In its petition, the Debtor reports total assets of
$5,631,222 and total liabilities of $7,297,236.
Honorable Bankruptcy Judge Caryl E. Delano handles the case.
The Debtor is represented by Michael Dal Lago, Esq., at Dal Lago
Law.
BBQ 4 LIFE: Unsecureds to Split $145.4K over 36 Months
------------------------------------------------------
BBQ 4 Life, LLC, filed with the U.S. Bankruptcy Court for the
District of Idaho a First Amended Plan of Reorganization under
Subchapter V dated February 28, 2025.
The Debtor, BBQ 4 Life, LLC, is a limited liability company that
provides dining services, specializing in barbecue dishes alongside
vegan offerings. At the time of filing its bankruptcy petition, BBQ
4 Life operated two restaurants in Idaho, "BBQ4Life" in Boise, and
"Hit List" in Garden City.
The Debtor was first formed in 2013 and started as a food truck. In
2014, the first physical location was started on Vista Avenue with
the BBQ 4 Life name and brand. During the COVID pandemic, this
location was closed and later reopened. In 2021, the Debtor opened
a second location on Glenwood Street known as "Hit List". Hit List
specializes in high quality quick serve burgers and sandwiches,
using much of the same quality as that found at the BBQ 4 Life
location.
Throughout the next years, Hit List continued to grow and increase
income for the business. At the same time, despite rave reviews and
being voted Boise's best BBQ location, BBQ 4 Life has consistently
seen sales decrease. In 2023 and 2024, the Debtor turned to
merchant cash advance loans to continue operating. A combination of
the still-pending COVID-era loans and the new MCA loans led to a
struggle to continue paying ongoing operating expenses, when ended
with the bankruptcy filing.
Class 6 consists of all unsecured claims against the Debtor, as
scheduled and asserted in filed and allowed Proofs of Claim,
together with any allowed amounts owed to the creditors in Class 4
and 5. This class will split a monthly payment on a pro rata basis
based on the allowed amount of the creditors' claims.
During months 1 through 12 of the plan the monthly payment amount
will be $200.00 per month. During months 13 through 24 of the plan
the monthly payment amount will be $1000.00 per month. During
months 25 through 30 of the plan the monthly payment amount will be
$2500.00 per month. During months 31 through 36 of the plan the
monthly payment amount will be $5500.00 per month.
In addition, in month 36, the Debtor will make an additional
payment of 50% of the ending cash balance on the last day of month
36 (projected to be approximately $83,000.00). (Assuming this
remaining cash balance as projected, the Debtor anticipates total
payments to this group of creditors in the amount of $145,400.00
over the term of the plan). This Class is impaired.
The Equity Security Holder(s) shall retain their ownership interest
in the Reorganized Debtor in the same amounts as they held
pre-petition ownership interests.
The Debtor intends to fund its plan through regular monthly
payments to creditors. These monthly payments will be made from the
income the Debtor receives from the operation of its two
restaurants, BBQ4Life and Hit List.
The Debtor anticipates all distributions to creditors will be made
by the Debtor, with no distributions by the subchapter V Trustee.
The Debtor anticipates the compensation for the subchapter V
Trustee will be on an hourly basis for his work monitoring this
case. In the event the subchapter V Trustee is required to make
distributions to creditors, the Debtor anticipates the Trustee will
receive compensation on an hourly basis, subject to reasonableness
standards, and that Plan Payments will be made from the Debtor to
the Trustee through Electronic Funds Transfers (EFTs) or other
medium of efficient monetary transactions from the Debtor to the
Trustee, as agreed and arranged between them.
A full-text copy of the First Amended Plan dated February 28, 2025
is available at https://urlcurt.com/u?l=uXoHxv from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Matthew T. Christensen, Esq.
Suzanne Jaderholm, Esq.
JOHNSON MAY, PLLC
199 N. Capitol Blvd., Suite 200
Boise, ID 83702
Telephone: (208) 384-8588
Facsimile: (208) 629-2157
Email: mtc@johnsonmaylaw.com
About BBQ 4 Life LLC
BBQ 4 Life, LLC is a limited liability company that provides dining
services, specializing in barbecue dishes alongside vegan
offerings.
The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Idaho Case No. 24-00585) on Aug.
30, 2024, listing up to $50,000 in assets and $500,001 to $1
million in liabilities.
Judge Noah G Hillen presides over the case.
Matthew T. Christensen, Esq. at Johnson May, PLLC, is the Debtor's
counsel.
BELL CANADA: S&P Rates Proposed Subordinated Notes 'BB+'
--------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating to Bell
Canada's (a wholly owned subsidiary of BCE Inc.; BBB/Stable/ A-2)
proposed Canadian dollar-denominated fixed- to fixed-rate
subordinated notes (2055-C) due 2055. The company intends to use
the net proceeds from these notes to fund upcoming maturities and
for other general corporate purposes.
S&P said, "We classify these notes as hybrid securities with
intermediate equity content (50%). This reflects the offering's
permanence, subordination, and deferability features. In line with
our criteria, we will reclassify the notes as having minimal equity
content after 2035, because the remaining period until maturity
will be less than 20 years.
"We rate these securities two notches below our 'BBB' long-term
issuer credit rating on BCE to reflect their subordination and
management's ability to defer interest payments on the
instrument."
The long-term nature of the subordinated debentures, along with the
company's limited ability and lack of incentives to redeem the
issuance meets our standards for permanence. BCE has emphasized its
willingness to maintain the instrument as part of its permanent
capital structure. In the event BCE were to redeem either of the
instruments before the effective maturity date, they must be
replaced with an equivalent or stronger equity content instrument
issued up to or on the date the original hybrid is redeemed. The
instruments are subordinated to all BCE's existing and future
senior debt obligations, thereby satisfying the condition for
subordination. In addition, the interest payments are deferrable up
to five years, which fulfills the deferability element. Pro forma
the transaction, the cumulative $8.2 billion of hybrids (preferred
shares and subordinated notes) receiving intermediate equity
treatment is about 15% of the company's 2024 capitalization (S&P
Global Ratings adjusted).
BENSON HILL: Case Summary & 30 Largest Unsecured Creditors
----------------------------------------------------------
Nine affiliates that simultaneously filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Benson Hill, Inc. (Lead Case) 25-10539
1200 Research Boulevard
Saint Louis, MO 63132
Benson Hill Holdings, Inc. 25-10540
BHB Holdings, LLC 25-10541
DDB Holdings, Inc. 25-10542
Benson Hill ND OldCo, Inc. 25-10543
Benson Hill Seeds Holding, Inc. 25-10544
Benson Hill Seeds, Inc. 25-10545
Benson Hill Fresh, LLC 25-10546
J&J Southern Farms, Inc. 25-10547
Business Description: Benson Hill is an ag-tech company focused on
innovating soy protein through advanced
genetics. Using its CropOS technology
platform, the Company creates food and feed
that are more nutritious, functional, and
produced efficiently, offering
sustainability benefits to the food and feed
sectors. By combining proprietary data,
artificial intelligence, and plant genomics,
Benson Hill speeds up the development of
improved food and feed options. The Company
emphasizes both quality and quantity, using
insights from its unique soybean germplasm
to drive seed innovation in markets like
aquaculture, pet food, swine, and poultry,
which make up 90% of the global soy market.
This approach accelerates product delivery
and redefines the role of soybeans in animal
feed, food, and fuel.
Chapter 11 Petition Date: March 20, 2025
Court: United States Bankruptcy Court
District of Delaware
Judge: Hon. Thomas M Horan
Debtors'
Bankruptcy
Counsel: Ian J. Bambrick, Esq.
Patrick A. Jackson, Esq.
Sarah E. Silveira, Esq.
FAEGRE DRINKER BIDDLE & REATH LLP
222 Delaware Avenue
Suite 1410
Wilmington, DE 19801
Tel: 302-467-4200
Fax: 302-467-4201
Email: ian.bambrick@faegredrinker.com
patrick.jackson@faegredrinker.com
sarah.silveira@faegredrinker.com
- and -
Michael T. Gustafson, Esq.
320 South Canal Street, Suite 3300
Chicago, IL 60606
Tel: (312) 569-1000
Fax: (312) 569-3000
Email: mike.gustafson@faegredrinker.com
Debtors'
Investment
Banker: PIPER SANDLER
Debtors'
Financial
Advisors: MERU, LLC
Debtors'
Claims &
Noticing
Agent: STRETTO, INC.
Total Assets as of Sept. 30, 2024: $137,542,000
Total Debts as of Sept. 30, 2024: $110,701,000
The petitions were signed by Daniel Cosgrove as interim chief
executive officer.
A full-text copy of the Lead Debtor's petition is available for
free on PacerMonitor at:
https://www.pacermonitor.com/view/SWNKL3Q/Benson_Hill_Inc__debke-25-10539__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. American Natural Processors Inc. Trade Vendor $1,897,477
600 Stevens Port Drive
Suite 101
North Sioux City, Sd 57049
Phone: (605) 242-6074
Email: debj@americannatural.us
2. HSREP VIII Holding LLC Rent $604,582
444 W Lake St.
Suite 2100
Chicago, Il 60606
Christopher Merrill, CEO
Phone: (314) 727-9300
Email: cmerrill@harrisonst.com
3. Baird Seed Farms Grower/Grain $426,004
1122 Knox Highway 18
Williamsfield, IL 61489
Email: eprintcenter@hp8.us
4. Brown Rudnick LLP Legal Services $398,253
One Financial Center
Boston, Ma 02111
Email: kyu@brownrudnick.com
5. 1200 Research Owner, LLC Rent $350,666
6 Countryside Lane
St. Louis, Mo 63131
Felix Williams
Email: fwilliams@lagomaj.com
6. Collector Of Revenue, Taxes/ $236,286
St. Louis County Government
41 S Central Ave Fees
Saint Louis, MO 63105
7. L7 Informatics, Inc. Trade Vendor $200,000
83333 Douglas Avenue, Ste 1600
Dallas, TX 75225
Email: accounting@l7informatics.com
8. Insight Direct USA, Inc. Trade Vendor $193,995
Po Box 731069
Dallas, TX 75373
Phone: (514) 373-8003
Email: ach@insight.com;
dikla.elmalich@insight.com
9. Perdue Agribusiness LLC Trade Vendor $192,838
Po Box 536478
Pittsburg, PA 15253
Phone: (410) 341-2966
Email: perdueagribusiness.ap@perdue.com
10. Vedder Price P.C. Legal Services $170,815
222 N Lasalle St
Chicago, Il 60601
Phone: (312) 609-7560
Email: jsigale@vedderprice.com
11. Anaplan, Inc. Software/ $148,476
50 Hawthorne St License
San Francisco, CA 94105
Phone: (952) 607-1306
Email: ar.amer@anaplan.com
12. Womble Bond Dickinson Legal Services $147,985
Po Box 601879
Charlotte, Nc 28260-1879
Email: accountsreceivable@wbd-us.com
13. Wintersteiger, Inc Trade Vendor $97,410
4705 Amelia Earhart Drive
Salt Lake City, Ut 84116
Email: sean.soyer@wintersteiger.com
14. Yerks Seed Inc. Grower/Grain $86,486
20202 Notestine Road
Woodburn, In 46797
Phone: (260) 657-5127
Email: dryerks@gmail.com
15. Remington Seeds Grower/Grain $81,282
P.O. Box 9
Remington, In 47977
Phone: (219) 261-3444
Email: michael.luck@remingtonseeds.com
16. Terrace Hill Farms Inc. Grower/Grain $81,218
April Monen
Terrace Hill Farms Inc
Inwood, Ia 51240
Phone: (605) 254-3588
Email: april@moglerfarms.com
17. Foley Hoag LLP Legal Services $73,996
Accounts Recievable,
Mail Code 11192
Po Box 70280
Philadelphia, Pa 19176-0280
Phone: (617) 832-1000
Email: ebilling@foleyhoag.com
18. S&P Global Limited Financial $72,500
Markit Group Limited Services
Ropemaker Place, 4th Floor
London, Ec2y9ly
United Kingdom
19. David Locke Grower/Grain $61,135
51396 Big Creek Lane
Hannibal, Mo 63401
Phone: (573) 248-5785
Email: lockefarms00@gmail.com
20. River Valley AG Exchange Grower/Grain $54,174
26 E Haynie St.
Marshall, Mo 65340
Phone: (660) 631-1007
Email: ddavis@rivervalleyagexchange.com
21. Ameren Missouri Utilities $53,635
P.O. Box 88068
Chicago, Il 60680-106
Phone: (877) 426-3736
Email: mybusinessamerenmissouri@ameren.com
22. University Of Missouri - Trade Vendor $43,750
Columbia AR
P.O. Box 807012
Kansas City, MO 64180-7012
23. Gadellnet Consulting Trade Vendor $41,285
Services, Llc
1520 S. Vandeventer Avenue
St. Louis, Mo 63110
Email: billing@gadellnet.com
24. Kroll LLC Trade Vendor $40,000
F/K/A Duff & Phelps LLC
55 E. 52nd Street, 17th Floor
New York, Ny 10055
Email: david.scott@duffandphelps.com
25. 3rd Millenium Genetics Corp Supplies $39,000
Po Box 818
Santa Isabel, Pr 00757
Email: dianne@3mgpr.com
26. S&G Seeds LLC Grower/Grain $38,510
2230 East County Road 300 North
Greensburg, In 47240
Email: info@sgcompanygroup.com
27. Eiwa Inc. Trade Vendor $26,343
112 Capitol Trail
Newark, De 19711
Phone: (314) 308-8546
Email: chirsch@eiwa.ag
28. ATC Scientific LLC Trade Vendor $25,970
312 Hemlock
North Little Rock, Ar 72114
Phone: (501) 771-4255
Email: sschuldt@atcscientific.com
29. Enterprise Fleet Management Trade Vendor $25,695
P.O. Box 800089
Kansas City, Mo 64180-0089
Phone: (314) 889-8436
Email: katheryn.e.folkes@efleets.com
30. Sunip LLC Trade Vendor $22,570
555 E City Ave
Suite 940
Bala Cynwyd, Pa 19004
Phone: (215) 392-2550
Email: accounting@sunip.com
BETA DRIVE HOTEL: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------
Beta Drive Hotel Group LLC got the green light from the U.S.
Bankruptcy Court for the Northern District of Ohio to use cash
collateral and grant protection to its lender, PSOF NP Cleveland,
LLC.
The interim order signed by Judge Suzana Krstevski Koch authorized
the company to use cash collateral to pay its operating expenses in
accordance with its budget.
As protection, PSOF was granted a continuing replacement security
interest in, and lien on its collateral effective as of the
petition date.
The interim order lists specific events that would trigger the
termination of the company's authority to use cash collateral,
including failure to abide by the terms of the order, use of cash
collateral for unauthorized purposes, and appointment of a Chapter
11 trustee.
The next hearing is scheduled for April 3.
PSOF is represented by:
Robert C. Folland, Esq.
Barnes & Thornburg LLP
41 S. High Street, Suite 3300
Columbus, OH 43215
Telephone: (614) 628-1429
Rob.Folland@BTLaw.com
-- and --
Lisa Wolgast, Esq.
Jason H. Watson, Esq.
3340 Peachtree Rd NE, Suite 2900
Atlanta, GA 30326-1092
Telephone: (470) 832-7535
Lisa.Wolgast@BTLaw.com
Jason.Watson@BTLaw.com
About Beta Drive Hotel Group LLC
Beta Drive Hotel Group LLC is a hospitality company that operates
the Hilton Garden Inn Cleveland East/Mayfield Village, offering
amenities such as complimentary Wi-Fi, an indoor/outdoor pool, and
extensive meeting spaces.
Beta Drive Hotel Group sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 25-10849) on March 2,
2025. In its petition, the Debtor reported estimated assets and
liabilities between $1 million and $10 million.
Judge Suzana Krstevski Koch handles the case.
The Debtor is represented by:
Frederic P. Schwieg, Esq.
Frederic P. Schwieg Attorney At Law
19885 Detroit Rd #239
Rocky River, OH 44116-1815
Tel: 440-499-4506
Fax: 440-398-0490
Email: fschwieg@schwieglaw.com
BIG LOTS: To Close Dozens of Locations After Items Run Out
----------------------------------------------------------
Ash Jurberg of Newsbreak reports that Big Lots has rolled out
massive going-out-of-business discounts as it nears its final days.
The retailer announced on Facebook that its stores are in their
"final weekend,” warning that locations will close as soon as all
merchandise is sold. The post stressed "last 3 days or less" as
liquidation sales pick up speed.
The company's bankruptcy filing in September 2024 revealed $3.1
billion in debt owed to around 10,000 creditors. While initially
planning to close 530 of its more than 1,000 stores, Big Lots later
secured a deal with Gordon Brothers to offload several hundred
leases. California has been the hardest hit, with 75 stores slated
to close.
Despite the liquidation efforts, the retailer's long-term prospects
remain uncertain. Some stores may continue operating, but reports
suggest that fewer than 200 locations will survive nationwide.
Big Lots joins a growing list of retailers filing for bankruptcy
this 2025, including Joann, Party City, Express, and Tupperware, as
traditional stores struggle amid tightening consumer spending.
With just days remaining, customers are encouraged to take
advantage of the final markdowns before Big Lots disappears from
many communities.
Here are the 75 California stores set to close.
* 1670 W Katella Ave., Anaheim
* 6336 E Santa Ana Canyon Rd., Anaheim
* 2240 El Camino Real, Atascadero
* 1085 Bellevue Rd., Atwater
* 1211 Olive Dr., Bakersfield
* 2621 Fashion Pl., Bakersfield
* 1482 E 2nd St., Beaumont
* 353 Carmen Dr., Camarillo
* 19331 Soledad Canyon Rd., Canyon Country
* 1611 E Hatch Rd., Ste A Ceres
* 1927 E 20th St., Chico
* 12550 Central Ave., Chino
* 2060 Monument Blvd, Concord
* 740 N Main St., Corona
* 5587 Sepulveda Blvd., Culver City
* 912 County Line Rd., Delano
* 1085 E Main St., El Cajon
* 8539 Elk Grove Blvd., Elk Grove
* 1500 Oliver Rd., Fairfield
* 9500 Greenback Ln., Ste 22, Folsom
* 17575 Foothill Blvd., Fontana
* 1986 Freedom Blvd., Freedom
* 3520 W. Shaw Ave, Fresno
* 4895 E Kings Canyon Rd., Fresno
* 7370 N Blackstone Ave., Fresno
* 2900 W Rosecrans Ave., Gardena
* 360 E 10th St., Gilroy
* 1551 Sycamore Ave., Hercules
* 42225 Jackson St., Ste B, Indio
* 3003 W Manchester Blvd., Inglewood
* 1020 W Imperial Hwy, La Habra
* 6145 Lake Murray Blvd., La Mesa
* 4484 Las Positas Road, Livermore
* 380 S Cherokee Ln., Lodi
* 1009 N H St, Ste M, Lompoc
* 2238 N Bellflower Blvd., Long Beach
* 951 W Pacheco Blvd., Los Banos
* 1321 West Yosemite Ave., Manteca
* 665 Fairfield Dr., Merced
* 111 Ranch Dr., Milpitas
* 27142 La Paz Rd., Mission Viejo
* 3900 Sisk Road, Modesto
* 3615 Elkhorn Blvd., North Highlands
* 1702 Oceanside Blvd., Oceanside
* 4430 Ontario Mills Pkwy, Ontario
* 1875 Oro Dam Blvd E., Oroville
* 6646 Clark Rd., Paradise
* 47 Fair Ln., Placerville
* 30501 Avenida De Las Flores, Rancho Santa Margarita
* 810 Tri City Ctr., Redlands
* 2620 Canyon Springs Parkway, Riverside
* 565 Rohnert Park Expressway, Rohnert Park
* 6630 Valley Hi Dr., Sacramento
* 8700 La Riviera Dr., Sacramento
* 370 Northridge Mall, Salinas
* 499 W Orange Show Rd., San Bernardino
* 3735 El Camino Real, Santa Clara
* 1417 S Broadway, Santa Maria
* 568 W Main St., Ste B, Santa Paula
* 2055 Mendocino Ave, Santa Rosa
* 1189 Simi Town Center Way, Simi Valley
* 633 Sweetwater Rd., Spring Valley
* 2720 Country Club Blvd, Stockton
* 27411 Ynez Rd., Temecula
* 955 Sepulveda Blvd, Torrance
* 2681 N Tracy Blvd, Tracy
* 1840 Countryside Dr., Turlock
* 225 Orchard Plz, Ukiah
* 818 Alamo Dr., Vacaville
* 14790 La Paz Dr., Victorville
* 2525 S Mooney Blvd., Visalia
* 13241 Whittier Blvd., Whittier
* 52 W Court St., Woodland
* 1320 Franklin Road, Yuba City
* 56865 29 Palms Hwy, Yucca Valley
About Big Lots
Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the
nation's largest closeout retailers focused on extreme value,
delivering bargains on everything for the home, including
furniture, decor, pantry and more.
On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries
initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead
Case No. 24-11967). The case is being administered by the Honorable
J. Kate Stickles.
Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim
Securities, LLC is serving as financial advisor, AlixPartners LLP
is serving as restructuring advisor, and A&G Real Estate Partners
is serving as real estate advisor to the Company. Kroll is the
claims agent.
Kirkland & Ellis is serving as legal counsel to Nexus Capital
Management LP.
PNC Bank, National Association, the DIP ABL Agent and Prepetition
ABL Agent, is represented by Choate, Hall & Stewart, LLP; and Blank
Rome, LLP. 1903P Loan Agent, LLC, the DIP Term Agent, and the
Prepetition Term Loan Agent are represented by Otterbourg, P.C. and
Richards, Layton & Finger, P.A.
BLACKROCK TCP: Moody's Withdraws 'Ba1' Corporate Family Rating
--------------------------------------------------------------
Moody's Ratings has withdrawn the Ba1 corporate family rating and
senior unsecured ratings of BlackRock TCP Capital Corp. (TCPC). At
the time of withdrawal the outlook was stable.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).
BRIGHTMARK PLASTICS: Gets Court Approval for Chapter 11 Financing
-----------------------------------------------------------------
Rick Archer of Law360 reports that a Delaware bankruptcy judge on
Wednesday, March 19, 2025, an Indiana plastic recycling plant
obtained court approval to draw an initial amount from $13 million
in Chapter 11 financing as it moves forward with an asset sale
planned for May 2025.
About Brightmark Plastics
Brightmark Plastics and affiliates are US-based chemical recycling
companies.
Brightmark Plastics and affiliates sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10472) on
March 16, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $100 million and $500 million each.
Honorable Bankruptcy Judge Laurie Selber Silverstein handles the
case.
The Debtor is represented by Jeremy W. Ryan, Esq., and Andrew
Ehrmann, Esq., at Potter Anderson & Corroon, in Wilmington,
Delaware.
BROWN & BROWN: Seeks Chapter 11 Bankruptcy in Texas
---------------------------------------------------
On March 17, 2025, Brown & Brown Resources Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Western District
of Texas. According to court filing, the
Debtor reports $3,848,513 in debt owed to 1 and 49 creditors.
The petition states funds will not be available to unsecured
creditors.
About Brown & Brown Resources Inc.
Brown & Brown Resources Inc., operating as Home Nursing & Therapy
Services, is a home health care provider specializing in delivering
nursing and therapy services to individuals in need of in-home
care.
Brown & Brown Resources Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-50501) on March
17, 2025. In its petition, the Debtor reports total assets of
$2,128,167 and total liabilities of $3,848,513.
.
Honorable Bankruptcy Judge Michael M. Parker handles the case.
The Debtor is represented by:
William R. Davis, Jr., Esq.
LANGLEY & BANACK, INC.
745 E. Mulberry Ave. Suite 700
San Antonio, TX 78212
Tel: (210) 736-6600
Email: wrdavis@langleybanack.com
BTG TEXTILES: Gets Interim OK to Use Cash Collateral Until April 23
-------------------------------------------------------------------
BTG Textiles, Inc. received interim approval from the U.S.
Bankruptcy Court for the Central District of California, Los
Angeles Division to use cash collateral.
The order authorized BTG Textiles to use the cash collateral of
Transportation Alliance
Bank, doing business as TAB Bank, until April 23.
The hearing on the company's motion to use cash collateral has been
continued to April 22.
About BTG Textiles Inc.
BTG Textiles Inc. is a Montebello, California-based textile
manufacturer and distributor. Founded in 1988, the company
manufactures and distributes textile products to healthcare
facilities, institutional laundries, janitorial services, and
hospitality businesses. BTG operates manufacturing facilities in
Bangladesh, Portugal, and Pakistan, maintaining its principal place
of business at 710 Union Street in Montebello.
BTG Textiles Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10548) on January 25,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Vincent P. Zurzolo handles the case.
The Debtor is represented by Michael Jay Berger, Esq., at Law
Offices of Michael Jay Berger, in Beverly Hills, California.
TAB Bank, as secured creditor, is represented by:
Michele S. Assayag, Esq.
Byron B. Mauss, Esq.
Snell & Wilmer L.L.P.
600 Anton Boulevard, Suite 1400
Costa Mesa, CA 92626
Telephone: (714) 427-7000
Facsimile: (714) 427-7799
BUFFALO NEWSPRESS: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The U.S. Trustee for Region 2 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Buffalo Newspress, Inc.
About Buffalo Newspress Inc.
Buffalo Newspress Inc., also known as BNP Empower, is a
full-service printing solutions provider based in Buffalo, N.Y.,
offering digital, web offset, and other printing services with 24/7
operations.
Buffalo Newspress filed Chapter 11 petition (Bankr. W.D>. N.Y.
Case No. 25-10125) on February 5, 2025, listing up to $10 million
in both assets and liabilities. Thomas J. Majerski, president of
Buffalo Newspress, signed the petition.
Judge Carl L. Bucki oversees the case.
Kevin R. Lelonek, Esq., at Gross Shuman, PC, represents the Debtor
as legal counsel.
BUTLER TRUCKING: Court OKs Interim Access to Cash Collateral
------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Ohio issued
a third interim order allowing Butler Trucking, LLC to continue to
use its secured creditors' cash collateral.
Butler Trucking authorized to use the cash collateral of secured
creditors, including the U.S. Small Business Administration,
Fundation Group, LLC, JasperCap, CashFloit LLC, United First, LLC,
and Asset Funding Source, LLC, for business operations.
Expenditures must align with the proposed budget (filed March 12)
but can exceed line items by 20% individually or 15% in total.
As protection for the use of their cash collateral, the secured
creditors will be granted replacement liens on the company's
property, to the same extent and with the same priority as their
pre-bankruptcy liens.
As additional protection, the SBA will receive monthly payments of
$731 while the other creditors will not receive any payments.
Butler's authority to use the cash collateral terminates if any of
the following events occurs: (i) the confirmation of a Chapter 11
plan; (ii) conversion or dismissal of its Chapter 11 case; (iii)
unauthorized use of the cash collateral; (iv) the company ceasing
operation of its business; (v) termination of the order; (vi) entry
of an order granting to the SBA or Channel relief from the
automatic stay; or (vii) the time set by the court for a further
hearing.
A further hearing is scheduled for May 15.
About Butler Trucking LLC
Butler Trucking LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-32443-jpg) on
December 17, 2024. In the petition signed by Justin Butler,
managing member, the Debtor disclosed up to $100,000 in assets and
up to $1 million in liabilities.
John P Gustafson oversees the case.
The Debtor is represented by Eric R. Neuman, Esq.
C.I.I. INC: Seeks to Hire Corey B. Beck PC as Legal Counsel
-----------------------------------------------------------
C.I.I., Inc. seeks approval from the U.S. Bankruptcy Court for the
District of Nevada to hire The Law Office of Corey B. Beck, P.C. as
legal counsel.
The firm will render these services:
a. take all necessary action to protect and preserve the
Estate, including the prosecution of actions on the Debtor's
behalf, the defense of any actions commenced against the Debtor,
the negotiation of disputes in which the Debtor are involved, and
the preparation of objections to claims filed against the Debtor's
estate;
b. prepare motions, answers, schedules, statements,
applications, and reports for which the services of an attorney is
necessary;
c. advise the Debtor of their rights and obligations and its
performance of its duties during the administration of the
bankruptcy case;
d. assist the Debtor in formulating a plan of reorganization
and disclosure statements and obtain approval and confirmation
thereof; and
e. represent the Debtor in all proceedings before the
bankruptcy court and other courts with jurisdiction over the
bankruptcy case.
The firm will be paid at the rate of $475 per hour, and $125 per
hour for paralegal services. The firm will seek reimbursement for
out-of-pocket expenses incurred.
Corey Beck, Esq., a partner at the Law Office of Corey B. Beck,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Corey B. Beck, Esq.
The Law Office of Corey B. Beck, P.C.
425 South Sixth Street
Las Vegas, NV 89101
Tel: (702) 678-1999
Fax: (702) 678-6788
Email: becksbk@yahoo.com
About C.I.I. Inc.
C.I.I., Inc., doing business as Cover It Window Fashions and
Cover-It Window Fashions, was founded in 1995 and specializes in
window coverings and interior design solutions, offering
exclusively Hunter Douglas shades along with custom drapery design
and fabrication. It also supplies Eclipse Zipper Track Exterior
Screens and Awnings to enhance outdoor living spaces. The company
delivers services like in-home consultations, measurements, and
installations to customers in the Las Vegas region.
C.I.I. filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Nev. Case No. 25-10677) on February 6,
2025, listing total assets of $560,662 and total liabilities of
$3,065,715.
Corey B. Beck, Esq., at the The Law Office of Corey B. Beck, P.C.
represents the Debtor.
CAMP RIM: Unsecured Creditors to Get 22.4% of Claims over 5 Years
-----------------------------------------------------------------
Camp Rim Rock, LLC, submitted a Second Amended Plan of
Reorganization for Small Business dated February 28, 2025.
The Debtor has provided projected financial information as attached
(the "Projections"). The Effective Date of the Plan shall be the
later of either March 1, 2025 or the first business day that is at
least 15 days following entry of a confirmation order by the Court.
These projections consist of a cash flow from the anticipated
Effective Date of the Plan (March 18, 2025) through April 2029. The
Debtor has selected April 2029 as the last month of the Plan
because May 2029 is the five‐year anniversary of the Petition
Date, and the Debtor's priority tax claims must be paid within five
years of the Petition Date.
The final Plan payment is expected to be paid in May 2029.
This Plan under chapter 11 of the Bankruptcy Code proposes to pay
creditors of the Debtor from disposable income as more fully set
forth in this Plan.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 22.4 cents on the dollar. This Plan also provides
for the payment in full of administrative and priority claims.
Class 2A consists of the allowed secured claim of Potomac, which is
impaired. Starting in the month of the Effective Date, the Debtor
will pay Potomac monthly payments of $13,265.30 on account of
principal, interest and a real estate tax escrow during the length
of the Plan. By no later than the end of the Plan term, the Debtor
shall have the option to either (1) cure all of the contractual
arrearages owing to Potomac under the Potomac loan documents, at
which point, the Debtor will be current in all loan payments to
Potomac, and the loan with Potomac will be deemed reinstated; or
(2) the outstanding indebtedness owing to Potomac shall be paid in
full.
The Debtor may pay the outstanding indebtedness through any
mechanism it chooses, including through an investment, sale,
finance, or refinance transaction, any or all of which the Debtor
is authorized to do without the need for Bankruptcy Court approval.
If the Debtor's preferred method of retiring the Potomac
indebtedness is through a refinance transaction, the Debtor shall
be authorized to perform any such transaction, including granting
liens to the new lender having the same priority as the liens of
Potomac and any lienholder with a lien subordinate to Potomac's
lien shall cooperate in subordinating any such lien to enable a
refinance lender to assume a lien position with the same extent and
priority as Potomac's liens.
Class 2C consists of the allowed secured claim of Malcolm Road
Associates Limited Partnership, which is impaired. Malcolm Road has
a valid and properly recorded mortgage lien on the Debtor's
Properties. Starting in the month of the Effective Date, the Debtor
will pay Malcolm Road monthly payments of $5,000, which shall be
applied first to accrued and unpaid interest and then to principal.
Monthly payments of $5,000 to Malcolm Road shall result in full
payment of the Malcolm Road indebtedness by June 2028, at which
time a final monthly payment of $2,441.55 shall be due.
Class 3 consists of all non-priority unsecured claims allowed under
Section 502 of the Code, which are impaired. Holders of allowed
non-priority unsecured claims shall be paid pro rata from the
Debtor's disposable income during the Plan, as set forth in the
Projections. Based on the Projections and payments that are made to
all claims with a higher priority to that of non-priority unsecured
claims (including Administrative Expense Claims, Priority Tax
Claims and Priority Deposit Claims), the first distribution to
Class 3 claimants shall occur in November 2026, with subsequent
distributions to occur every six months thereafter.
A final distribution will occur upon the conclusion of the Plan
term in April 2029. The payments to be made to Class 3 total
$768,413, which is equivalent to about 22.4% of each allowed Class
3 claim based upon the amount of scheduled claims in the aggregate
amount of $3,435,929.77. The treatment and consideration to be
received by holders of Class 3 claims shall be in full settlement,
satisfaction, release and discharge of their respective claims.
The Plan sets forth a payment period that begins on the Effective
Date and concludes on April 30, 2029, which is five years from the
Petition (the "Plan Period"). Bankruptcy Code section 1191(c)(2)(A)
sets three years as the default plan period; however, the Debtor is
proposing a longer plan period in order to pay its Priority Tax
Claims and other creditors over the five-year period (measured from
the Petition Date).
The Debtor will fund its payments under the Plan from its projected
disposable income received in the Plan Period. As shown by the
Projections, the Debtor anticipates having approximately $228,501
in cash on the Effective Date, which will function as a liquidity
cushion during the case and is not included as disposable income
received in the Plan Period. At the end of the Plan Period, based
upon the Projections, the Debtor's final distribution to
non-priority unsecured creditors in Class 3 will reduce its cash
balance back down to the amount of cash held on the Effective Date.
Accordingly, based upon the Projections, the Debtor will be
devoting all of its disposable income throughout the Plan Period to
payments under the Plan.
A full-text copy of the Second Amended Plan dated February 28, 2025
is available at https://urlcurt.com/u?l=trcW3N from
PacerMonitor.com at no charge.
Counsel to the Debtor:
David B. Smith, Esq.
Smith Kane Holman, LLC
112 Moores Road Suite 300
Malvern, PA 19355
Tel: (610) 407-7215
Fax: (610) 407-7218
Email: dsmith@skhlaw.com
About Camp Rim Rock
Camp Rim Rock is an overnight camp for girls. Campers can
participate in five daily activities: Horseback Riding, Performing
Arts, Aquatics, Arts & Crafts, and Sports.
Camp Rim Rock, LLC in Bryn Mawr, PA, filed its voluntary petition
for Chapter 11 protection (Bankr. E.D. Pa. Case No. 24-11498) on
May 2, 2024, listing as much as $1 million to $10 million in both
assets and liabilities. Joseph Greitzer, sole member, signed the
petition.
Judge Ashely M. Chan oversees the case.
The Debtor tapped Smith Kane Holman, LLC as legal counsel, and
Foresight Business Solutions, LLC, as accountant.
CAPSTONE COPPER: S&P Assigns 'BB-' ICR, Outlook Stable
------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term issuer credit
rating to Canada-based copper producer Capstone Copper Corp. This
primarily reflects the company's moderate scale, limited operating
breadth, and average cost position, offset by its relatively low
leverage.
S&P said, "We also assigned our 'BB-' issue-level rating and '3'
recovery rating to the company's proposed $500 million senior
unsecured notes due 2033.
"We expect the company will use net proceeds from the proposed
issuance primarily to repay its existing project financing facility
at its Mantoverde mine.
"The stable outlook reflects our view that Capstone will generate
steady leverage measures, with S&P Global Ratings-adjusted
debt-to-EBITDA in the mid-1x area through 2026, and transition to
positive free operating cash flow (FOCF) generation over the next
12 months.
"Capstone is a midsize copper producer with limited operating
breadth. We view Capstone as a midsize operator with limited
diversity and an average cash cost position. The company has four
producing mines with consolidated copper production that we
estimate will be about 550 million pounds (mlbs) in 2025. The
Mantoverde mine in Chile is expected to account for about half of
total copper output in a few years, and copper accounts for more
than 95% of the company's revenue.
"In our view, Capstone's concentrated asset base and limited
commodity diversification exposes it to a potential decline in the
price of copper or unexpected operating disruptions, which can
contribute to volatility in earnings and cash flows. However, we
note the company has a track record of steady production and
operates in relatively low-risk mining jurisdictions, including
Chile, Mexico, and the U.S. The company also has long reserve lives
at three of its four mines, with about 15 or more years at Pinto
Valley, Mantos Blancos, and Mantoverde. This should enable it to
sustain or grow production over the next several years with less
capital investment than would otherwise be the case.
"On a consolidated basis, we believe Capstone will be positioned
near the middle of the global industry copper cost curve over the
next couple of years, with an estimated unit cash cost of about
$2.30 per pound (/lb) in 2025. Cozamin is the company's lowest-cost
asset, but with the shortest reserve life asset as it only has six
years of remaining production. We believe Capstone's profitability
is highly sensitive to potential copper price downturns and ensuing
earnings volatility, which we incorporate in our business risk
assessment. That said, under our assumption for average copper
prices of $4.22-$4.31/lb with steady production and unit cash
costs, we expect Capstone will generate EBITDA margins above 40%
over the next few years, well above historical levels.
"We expect Capstone will maintain low leverage and generate
positive FOCF over the next few years. We estimate the company will
maintain relatively stable debt levels over the next couple of
years, with S&P Global Ratings-adjusted debt to EBITDA in the
mid-1.0x area. Our adjusted debt calculation includes the company's
proposed $500 million unsecured notes, lease liabilities,
tax-adjusted asset retirement obligations, and unamortized
liability associated with streaming transactions. We do not net
Capstone's cash against debt. We consider the company's leverage
forecast to be relatively low, but we incorporate potential
volatility in cash flow and leverage metrics in our rating. We
believe Capstone's credit measures will remain highly sensitive to
copper price fluctuations. All else being equal, we estimate the
company's EBITDA would decline 35% and S&P Global Ratings-adjusted
debt to EBITDA would increase about 1.5x in 2025 if copper prices
averaged 15% below our current assumption.
"The company achieved commercial production at its $870 million
Mantoverde development project (sulphide operations)--oxide
operations were already producing--in the third quarter of 2024 and
is currently ramping up production. We expect consolidated copper
production to increase 35%-40% this year as Mantoverde gradually
ramps up. As production increases and unit costs improve, we expect
its 2025 EBITDA will more than double from 2024 and transition the
company to positive and growing annual FOCF generation. Under our
base case, we estimate Capstone will generate cumulative FOCF of
more than $800 million for 2025-2027. We estimate this strong cash
flow generation could bolster the company's liquidity position,
which, when combined with a long-dated debt maturity profile,
provides it with the financial flexibility to pursue growth
opportunities over the next few years.
"The Santo Domingo project could meaningfully increase production
size and improve asset diversification. Capstone has good growth
opportunities in our view, including its Mantoverde optimization
(MVO) project in the near term and its Santo Domingo development
project in the longer term." MVO could add about 45 mlbs of
consolidated copper production at a relatively low capital
expenditure of about $150 million over the next couple of years.
The Santo Domingo project in Chile is fully permitted and, if
developed, could add a sizable low-cost production asset to the
company's portfolio.
Copper production from Santo Domingo could improve the company's
operating breadth and reduce its dependence on Mantoverde because
it could add average annual production of more than 230 mlbs during
the first seven years (100% basis). Furthermore, with meaningful
iron oxide and gold byproduct credits from the mine, this asset
could materially improve Capstone's consolidated cost profile. S&P
said, "We understand the financial and execution risks inherent in
larger scale mining projects, including potential cost overruns and
construction delays, which are common across the mining industry
and could affect Capstone. Still, we believe Santo Domingo
development is unlikely to lead to materially higher leverage based
on our understanding of the company's financing plan, which would
likely involve a joint-venture partner, and our view that Capstone
could be in a stronger liquidity position at the point of a
potential construction decision in 2026."
S&P said, "The stable outlook reflects our view that Capstone will
generate stable core credit ratios, maintain sufficient liquidity,
and transition to positive free cash flows over the next 12 months.
We estimate the company's S&P Global Ratings-adjusted
debt-to-EBITDA ratio will be in the mid-1x area over the next
couple of years.
"We could downgrade Capstone within the next 12 months if we expect
the company's S&P Global Ratings-adjusted debt to EBITDA to
increase above 3x for a sustained period. This could occur from
lower-than-expected copper prices or operational challenges,
including ramp-up issues at Mantoverde.
"We could upgrade Capstone within the next 12 months if the company
meaningfully increases production while improving unit cash costs
as it ramps up Mantoverde and maintains low leverage."
CC 1400 ALICEANNA: Seeks Chapter 11 Bankruptcy in Maryland
----------------------------------------------------------
On March 13, 2025, CC 1400 Aliceanna Street LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Maryland. 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 CC 1400 Aliceanna Street LLC
CC 1400 Aliceanna Street LLC is a real estate development company
based in Baltimore, Maryland.
CC 1400 Aliceanna Street LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-12153) on March
13, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
The Debtor is represented by:
Brent C. Strickland, Esq.
WHITEFORD, TAYLOR & PRESTON L.L.P.
8830 Stanford Blvd., Suite 400
Columbia, MD 21045
Tel: (410) 347-9402
E-mail: bstrickland@whitefordlaw.com
CEDERMERE LLC: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Cedermere LLC
1008 Springs Fireplace Road
East Hampton, NY 11937
Business Description: Cedermere LLC is a single asset real estate
debtor, as defined in 11 U.S.C. Section
101(51B).
Chapter 11 Petition Date: March 17, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-71001
Judge: Hon. Alan S Trust
Debtor's Counsel: Rachel L. Kaylie, Esq.
LAW OFFICES OF RACHEL L. KAYLIE, P.C.
1702 Avenue Z
Suite 205
Brooklyn, NY 11235
Tel: 718-615-9000
Fax: 718-228-5988
Email: rachel@kaylielaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Dubin as owner.
The Debtor has confirmed that there are no unsecured creditors.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/35UCIGY/Cedermere_LLC__nyebke-25-71001__0001.0.pdf?mcid=tGE4TAMA
CENTRAL HOUSEWARES: Gets Final OK to Use Cash Collateral
--------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Wisconsin
authorized Central Housewares, Inc. to use cash collateral on a
final basis.
The final order signed by Judge Katherine Maloney Perhach
authorized the company to make monthly payments of $415.33 to
Nicolet National Bank, $2,484 to the U.S. Small Business
Administration, and $888.27 to ODK Capital, LLC, starting this
month.
As additional protection, SBA was granted a replacement lien on
assets of the company acquired after Jan. 27.
The final order also granted a replacement lien to EBF Holdings,
LLC (doing business as Everest Business Funding) and Channel
Partners Capital, LLC on Central Housewares' assets that the
company acquired after Jan. 27 to the extent the company uses the
cash collateral of such creditors.
In case EBF's and Channel's pre-bankruptcy liens are avoided by
stipulation or by adversary proceeding pursuant to Chapter 5 of the
Bankruptcy Code, the replacement liens will be void.
About Central Housewares Inc.
Central Housewares, Inc. is a retailer of pools, spas, outdoor
living equipment, as well as billiards and other table games.
Central Housewares sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Wisc. Case No. 25-20408) on January
27, 2025, listing up to $1 million in assets and up to $10 million
in liabilities. Jeffrey Desing, president of Central Housewares,
signed the petition.
Judge Katherine M. Perhach oversees the case.
Paul G. Swanson, Esq., at Swanson Sweet, LLP, represents the Debtor
as legal counsel.
CHASEN CONSTRUCTION: Involuntary Chapter 11 Case Summary
--------------------------------------------------------
Alleged Debtor: Chasen Construction LLC
12 W. Montgomery St.
Attn: Brandon Chasen
Baltimore, MD 21230
Business Description: Chasen Construction LLC, operating as
Chasen Companies, specializes in real
estate acquisition and development in
the Greater Baltimore Region, with
plans for expansion across the U.S. As
a vertically integrated company,
Chasen manages the entire development
process, from acquisitions and
financing to construction, marketing,
and leasing. The Company is dedicated
to delivering high-quality living and
workspaces, designed with luxury and
modern amenities to enhance the tenant
experience.
Involuntary Chapter
11 Petition Date: March 19, 2025
Court: United States Bankruptcy Court
District of Maryland
Case No.: 25-12356
Judge: Hon. Nancy V Alquist
Petitioners' Counsel: Jeffrey T. Martin, Esq.
MARTIN LAW GROUP, P.C.
8065 Leesburg Pike, Suite 750
Vienna, VA 22182
Tel: 703-223-1822
Email: jeff@martinlawgroup.com
- and -
Jill D. Caravaggio, Esq.
LAW OFFICE OF JILL D. CARAVAGGIO
5100 Buckeystown Pike, Suite 250
Frederick MD 21704
Tel: 301-363-3913
Email: jill@jill-lawoffice.net
- and -
Shawn Charles Whittaker, Esq.
WHITTAKER/MYERS, PC
1401 Rockville Pike, Suite 510
Rockville MD 20852
Tel: 301-838-4502
Email: shawn@whittakermyers.com
A full-text copy of the Involuntary Petition is available for free
on PacerMonitor at:
https://www.pacermonitor.com/view/7WOXUVI/Chasen_Construction_LLC__mdbke-25-12356__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
Sandy Spring Bank Guaranty of $28,922,378
6831 Benjamin Franklin Drive Business Loan
Columbia MD 21046
Ferguson Enterprises, LLC Trade Debt $70,658
13890 Lowe St.
Chantilly VA 20151
Southland Insulators of Trade Debt $517,255
Maryland, Inc.
7501 Resource Court
Baltimore MD 21126
CHICKEN SHACK: Seeks to Tap Northside Tax Service as Enrolled Agent
-------------------------------------------------------------------
Chicken Shack, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Florida to employ Northside Tax
Service, Inc. as enrolled agent.
The firm will provide tax advice, accounting/bookkeeping services,
and payroll services for the Debtor.
Rebecca Richardson, the primary agent in this representation, will
be paid $50 for monthly sales tax services; $155 for monthly
payroll services; $125 for quarterly payroll tax services; $275;
for monthly bookkeeping/accounting services, and various rates to
prepare annual tax returns.
Ms. Richardson disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Rebecca Richardson
Northside Tax Service, Inc.
4699 North Monroe Street
Tallahassee, FL 32303
Telephone: (850) 443-2269
About Chicken Shack
Chicken Shack, LLC is a restaurant business located in Tallahassee,
Fla. It operates as Krispy Krunchy Chicken and formerly known as
Fresh 2 Go Cafe, LLC.
Chicken Shack filed Chapter 11 petition (Bankr. N.D. Fla. Case No.
25-40014) on January 14, 2025, listing up to $50,000 in assets and
between $100,000 and $500,000 in liabilities.
Judge Karen K. Specie handles the case.
The Debtor is represented by Robert C. Bruner, Esq., at Bruner
Wright, PA in Tallahassee, Fla.
CKA ENTERPRISES: Seeks to Hire Tang & Associates as Legal Counsel
-----------------------------------------------------------------
CKA Enterprises LLC seeks approval from the U.S. Bankruptcy Court
for the Central District of California to hire Tang & Associates as
counsel.
The firm will render these services:
(a) advise the Debtor on matters relating to administration of
the Estate, and on the applicant's rights and remedies about the
Estate's assets and the claims of secured and unsecured
creditors;
(b) appear for, prosecute, defend, and represent the
applicant's interest in suits arising in or related to this case,
including any adversary proceedings against the Debtor;
(c) assist in the preparation of such pleadings, applications,
schedules, orders, and other documents as are required for the
orderly administration of this Estate; and
(d) represent the Debtor in any adversary proceeding to
recover assets of the bankruptcy estate.
The hourly rates for Kevin Tang, Esq., an attorney at Tang &
Associates, and paralegals/law clerk are $500 and $200,
respectively.
The firm received a retainer of $20,000.
Mr. Tang disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Kevin Tang, Esq.
Tang & Associates
17011 Beach Blvd., Suite 900
Huntington Beach, CA 92647
Telephone: (714) 594-7022
Facsimile: (714) 421-4439
Email: kevin@tang-associates.com
About CKA Enterprises LLC
CKA Enterprises LLC operating as Self Made Training Facility
Hollywood, is a 25,000 square foot private training facility
located in Los Angeles that provides specialized gym space and
services for personal trainers and their clients. The facility is
part of the Self Made Training Facility franchise network.
CKA Enterprises LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal.Case No. 25-10599) on January 28,
2025. In its petition, the Debtor reports estimated assets between
$100,000 and $500,000 and estimated liabilities between $1 million
and $10 million.
Honorable Bankruptcy Judge Vincent P. Zurzolo handles the case.
The Debtor is represented by Kevin Tang, Esq., at Tang &
Associates, in Huntington Beach, California.
COGENT BAY: Seeks to Hire The Knight Law Group as Legal Counsel
---------------------------------------------------------------
Cogent Bay Inc. seeks approval from the U.S. Bankruptcy Court for
the Northern District of California to hire Noel Knight of the
Knight Law Group as counsel.
The firm's services include:
a. giving Debtor legal advice with respect to its powers and
duties as Debtor-In-Possession in the continued operation of his
business affairs and management of his property, including, without
limitation, to advise and to consult with Debtor concerning
questions arising in the administration of its property as well as
Debtor's rights and responsibilities with regard to his affairs and
the claims of secured and unsecured creditors and
parties-in-interest;
b. preparing, on behalf of Debtor, all necessary applications,
answers, Orders, reports and other legal papers, (but not financial
or monthly operation reports) including the expected Plan of
Reorganization and any other accompanying statement; and
c. performing all other legal services for Debtor that may be
necessary.
d. providing any and all required tasks to list and sell the
Compass property, to the benefit of the bankruptcy estate.
The firm will charge $300 per hour for its legal services.
The Debtor paid the firm a retainer of $10,000.
Noel Knight, Esq., an attorney at The Knight Law Group, disclosed
in a court filing that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Noel Knight, Esq.
The Knight Law Group
800 J. St., Ste. 441
Sacramento, CA 95814
Telephone: (510) 435-9210
Facsimile: (510) 281-6889
Email: lawknight@theknightlawgroup.com
About Cogent Bay Inc.
Cogent Bay Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No.
25-40011) on January 6, 2025, listing $1 million to $10 million in
assets and $500,000 to $1 million in liabilities. The petition was
signed by David C. Sowels in his capacity as president.
Noel Christopher Knight, Esq. at THE KNIGHT LAW GROUP represents
the Debtor as counsel.
COGENT BAY: Seeks to Hire Turton Commercial as Real Estate Broker
-----------------------------------------------------------------
Cogent Bay Inc. seeks approval from the U.S. Bankruptcy Court for
the Northern District of California to hire David Khedry of the
Turton Commercial Real Estate Group as broker.
The broker will list and sell the property located at 826 14th
Street in Sacramento, California.
Mr. Khedry assured the court that he does not hold or represent any
interest adverse to the Debtor or the estate.
The broker can be reached through:
David Khedry
Turton Commercial Real Estate Group
2131 Capitol Ave, Ste 100
Sacramento, CA 95816
Tel: (916) 573-3300
About Cogent Bay Inc.
Cogent Bay Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No.
25-40011) on January 6, 2025, listing $1 million to $10 million in
assets and $500,000 to $1 million in liabilities. The petition was
signed by David C. Sowels in his capacity as president.
Noel Christopher Knight, Esq. at THE KNIGHT LAW GROUP represents
the Debtor as counsel.
COHNREZNICK ADVISORY: Fitch Assigns 'B' IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has assigned a first-time Issuer Default Rating (IDR)
of 'B' to CohnReznick Advisory LLC and Currahee Borrower Sub LLC.
Fitch has also assigned a 'B+' rating with a Recovery Rating of
'RR3' to the issuers' proposed senior secured credit facilities.
The Rating Outlook is Stable.
The company plans to raise a $540 million initial term loan to fund
the purchase of a strategic growth investment in CohnReznick by
funds advised by Apax Partners LLP (the sponsor) and an independent
co-investor. CohnReznick's ratings reflect its competitive
capabilities, market presence, stable and predictable revenue, and
smaller scale relative to Fitch's broader business services rated
universe. The ratings also consider the company's M&A strategy and
ownership structure, which will likely prioritize growth and ROE
optimization over debt reduction.
Key Rating Drivers
Mid-Tier Position, Small Relative Scale: CohnReznick operates
within the mid-tier accounting services market, which is highly
fragmented compared to the upper-tier market dominated by the Big
Four accounting firms. The company leverages its strong reputation
and expertise to maintain its position.
Competing with national and regional firms, CohnReznick
differentiates itself by offering scalable services to clients
ranging from small businesses to the upper middle market.
CohnReznick is adequately positioned within the 'B' category,
reflecting its competitive capabilities, market presence, and
scale.
M&A Strategy Could Accelerate: Fitch expects CohnReznick to enhance
growth through strategic M&A, a key element of the company's
strategy to increase market presence in the fragmented
middle-market accounting services sector. The company has
successfully completed eight M&A transactions since 2014, adding a
combined $140 million in revenue.
CohnReznick's M&A strategy aims to broaden its geographic reach and
diversify service offerings, improving its competitive position.
However, integrating acquired entities and potential unforeseen
costs could pose risks if M&A-related expenses or execution
challenges lead to weaker FCF and higher leverage than Fitch
anticipates.
Strong Retention and Recurring Characteristics: CohnReznick has
gross revenue retention in the mid-90% range and solid recurring
revenue from its tax and assurance businesses, supporting revenue
visibility. Net retention is above 100%, indicating effective
cross-selling and strong client relationships.
Adequate FCF Margins: CohnReznick's ratings are supported by
Fitch's expectations of moderate FCF generation through 2027.
Limited capital expenditure requirements and a manageable debt
burden - even with potential RCF and delayed draw term loan (DDTL)
draws - should support adequate cash flow. Fitch projects cash flow
from operations (CFO)-capex/debt to remain above 2%, consistent
with a 'B' rating.
Capitalization Allows Room to Expand: The company's proposed
capitalization is adequate, with the pro forma debt/EBITDA leverage
ratio immediately after the debt transaction slightly above 4.0x.
Pro forma debt/EBITDA leverage is relatively low for the rating.
Fitch's forecast suggests debt/EBITDA leverage can remain
comfortably below 6.0x and interest coverage above 2.0x at the
current rating. Borrowings on the $125 million revolver and $125
million DDTL should allow the company to continue its M&A strategy
or provide liquidity for corporate purposes.
Non-Cyclical Demand Profile: CohnReznick's main offerings - tax and
assurance - are largely insulated from cycle risk, supporting the
credit profile. Compliance with annual reporting requirements means
CohnReznick's tax and assurance businesses, which comprise around
75% of revenue, are essential for its clients. CohnReznick's
resilience to cycle risk is largely consistent with characteristics
of other certified public accountant firms in Fitch's rating
universe.
Peer Analysis
CohnReznick is well-positioned in the middle market for accounting
services, ranking among the top 20 firms behind the Big Four and
other global firms such as BDO, RSM and Grant Thornton. It is
comparable in size to Eisner Advisory Group, LLC (B/Stable). Eisner
has pursued acquisitions since its LBO, resulting in high leverage,
but Fitch expects improved cash flow and leverage aligning with its
'B' IDR in the next 12-24 months. CohnReznick is smaller and has
lower operating leverage than the Big Four.
Key Assumptions
Fitch's Key Assumptions Within the Rating Case for the Issuer:
- Mid-single-digit organic revenue growth, and high single digits
to low double digits when including acquisitions;
- EBITDA margins of 12% or higher;
- Working capital to remain a cash use linked to steadily growing
receivables base;
- Annual capex in the 1%-2% of revenue;
- The company continues to pursue M&A, but sustains metrics
appropriate with its 'B' rating.
Recovery Analysis
Fitch's recovery analysis assumes the company will be reorganized
as a going concern (GC) in the event of the bankruptcy rather than
liquidated. The GC analysis assumes a decline in EBITDA to reflect
the stress that provoked the bankruptcy, as well as an amount of
corrective action taken before emergence from bankruptcy.
In arriving at a GC EBITDA, Fitch assumes sustained partner and/or
client defections resulting in a meaningful loss of around 25% of
revenue to the $900 million area. Fitch assumes a full draw on the
revolver and DDTL, with the DDTL used for acquisitions which
contribute around $100 million to pre-bankruptcy revenue. Fitch
assumes post-bankruptcy margins settle in the 10% area, resulting
in a GC EBITDA of around $100 million.
The company's debt balance at the time of default is estimated to
be just south of $800 million consisting of pari passu senior
secured debt. Fitch assumes a fully drawn revolver of $125 million.
Using a 6.0x emergence multiple, the GC EBITDA and 10%
administrative claims results in a recovery rate for the senior
secured debt within the 'RR3' range to generate a one-notch uplift
to the debt rating from the IDR.
The recovery multiple of 6.0x reflects several factors, including
the stable recurring revenue nature of the accounting business, as
well as its position in the fragmented market for middle market
accounting services as well as historical reorganization multiples
Fitch has observed in the technology, media and telecommunications
sector, which includes business services companies in Fitch's
categorization.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- (CFO-capex)/debt sustained below 2% excluding acquisition and
integration costs;
- EBITDA interest coverage sustained below 2.0x;
- Debt/EBITDA leverage maintained above 6.0x;
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- (CFO-Capex)/debt held above 4%;
- Increased EBITDA scale;
- Debt/EBITDA leverage sustained below 5.0x.
Liquidity and Debt Structure
Fitch expects the company to have $125 million of revolver
availability and $125 million of DDTL commitments at close. Part of
these liquidity resources will likely be allocated to M&A or
working capital across the forecast. Ample revolver availability is
projected through 2027. Fitch also expects that positive FCF to
support liquidity needs and comfortably cover annual debt
amortizations of $5 million.
The proposed credit facility consists of a $540 million initial
term loan, a $125 million DDTL and a five-year $125 million
revolver. The entire facility will rank pari passu on a first lien
secured basis. The term loan and DDTL carry a seven-year tenor.
Issuer Profile
CohnReznick offers assurance, tax and advisory services throughout
the U.S.
Date of Relevant Committee
10-Mar-2025
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery
----------- ------ --------
CohnReznick Advisory LLC LT IDR B New Rating
senior secured LT B+ New Rating RR3
Currahee Borrower Sub LLC LT IDR B New Rating
senior secured LT B+ New Rating RR3
COMMUNITY AWARENESS: Seeks Chapter 11 Bankruptcy in New York
------------------------------------------------------------
On March 21, 2025, Community Awareness Network for a Drugfree Life
and Environment Inc. filed Chapter 11 protection in the U.S.
Bankruptcy Court for the Southern District of New York. According
to court filing, the Debtor reports between $100,000 and
$500,000 in debt owed to 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
About Community Awareness Network for a Drugfree Life and
Environment Inc.
Community Awareness Network for a Drugfree Life and Environment
Inc. is a nonprofit organization founded in 1982 dedicated to
preventing substance abuse and violence among youth.
Community Awareness Network for a Drugfree Life and Environment
Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 25-22225) on March 21, 2025. In its
petition, the Debtor reports estimated assets up to $50,000 and
estimated liabilities between $100,000 and $500,000.
Honorable Bankruptcy Judge Sean H. Lane handles the case.
The Debtor is represented by:
Robert S. Lewis, Esq.
Robert S. Lewis PC
29 Main Street
Nyack, NY 10960
Phone: 845-358-7100
CONROE CORRAL: Seeks to Hire Acosta Law as Bankruptcy Counsel
-------------------------------------------------------------
Conroe Corral Murphy, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Acosta Law, PC
as counsel.
The firm will render these services:
(a) analyze the financial situation, and render advice and
assistance to the Debtor;
(b) advise the Debtor with respect to its rights, duties, and
powers in this Chapter 11 case;
(c) represent the Debtor at all hearings and other
proceedings;
(d) prepare and file all appropriate petitions, schedules of
assets and liabilities, statements of affairs, answers, motions and
other legal papers as necessary to further the Debtor's interests
and objectives;
(e) represent the Debtor at any meeting of creditors and such
other services as may be required during the course of the
bankruptcy proceedings;
(f) represent the Debtor in all proceedings before the court
and in any other judicial or administrative proceeding where the
rights of the Debtor may be litigated or otherwise affected;
(g) prepare and file a Disclosure Statement and Chapter 11
Plan of Reorganization;
(h) assist the Debtor in analyzing the claims of the creditors
and in negotiating with such creditors; and
(i) assist the Debtor in any matters relating to or arising
out of the captioned case.
The firm's counsel and staff will be paid at these hourly rates:
Alex Olmedo Acosta, Attorney $450
Martin Lee Pack, Attorney $350
Paralegal $105
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer $50,000 from the Debtor.
The firm can be reached through:
Alex Olmedo Acosta, Esq.
Acosta Law, P.C.
13831 Northwest Freeway, Suite 400
Houston TX 77040
Telephone: (713) 980-9014
Facsimile: (713) 583-9554
Email: alex@theacostalawfirm.com
About Conroe Corral Murphy
Conroe Corral Murphy, LLC operates within the restaurant industry.
It is based in Conroe, Texas.
Conroe Corral Murphy filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-30765) on
February 7, 2025. In its petition, the Debtor listed up to $50,000
in assets and between $1 million and $10 million in liabilities.
Judge Jeffrey P. Norman handles the case.
The Debtor tapped Alex Olmedo Acosta, Esq., at Acosta Law, PC as
bankruptcy counsel and Adrienne J. Paris, CPA as accountant.
CONROE CORRAL: Seeks to Hire Adrienne J. Paris as Accountant
------------------------------------------------------------
Conroe Corral Murphy, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Adrienne J.
Paris, CPA as its accountant.
The firm will render these services:
(a) prepare federal tax returns and state franchise tax
returns;
(b) prepare delinquent payroll tax returns;
(c) maintain books and records;
(d) adjust the books and records of the Debtor to the extent
necessary; and
(e) prepare monthly operating reports.
The firm will be paid a flat rate of $1,250 a month for bookkeeping
and monthly operating report preparation services and $1,250 for
the preparation federal income tax returns. The firm will also
charge $250 for the preparation of delinquent payroll tax returns.
Adrienne Paris, a certified public accountant, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Adrienne J. Paris, CPA
2751 S. Loop 3336 W.
Conroe, TX 77304
Telephone: (832) 764-6169
About Conroe Corral Murphy
Conroe Corral Murphy, LLC operates within the restaurant industry.
It is based in Conroe, Texas.
Conroe Corral Murphy filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-30765) on
February 7, 2025. In its petition, the Debtor listed up to $50,000
in assets and between $1 million and $10 million in liabilities.
Judge Jeffrey P. Norman handles the case.
The Debtor tapped Alex Olmedo Acosta, Esq., at Acosta Law, PC as
bankruptcy counsel and Adrienne J. Paris, CPA as accountant.
D ELITE MANAGEMENT: Seeks Chapter 11 Bankruptcy in Texas
--------------------------------------------------------
On March 21, 2025, D Elite Management Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Texas. According to court filing, the Debtor reports between
$1 million and $10 million in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About D Elite Management Inc.
D Elite Management Inc. is a Dallas, Texas-based management
company.
D Elite Management Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-30983) on March 21,
2025. In its petition, the Debtor reports estimated assets between
$50,000 and $100,000 and estimated liabilities between $1 million
and $10 million.
Honorable Bankruptcy Judge Michelle V. Larson handles the case.
D&D TRUCKING: Taps Sheehan & Associates as Bankruptcy Counsel
-------------------------------------------------------------
D&D Trucking, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Western Virginia to hire Sheehan &
Associates, PLLC as bankruptcy counsel.
The Debtor requires legal counsel to:
a. give advice with respect to the Debtor's powers and duties
and the administration of the Debtor's estate, and assist in the
preparation of a Chapter 11 plan of reorganization;
b. prepare legal papers;
c. represent the Debtor at court hearings;
d. investigate and institute any proceedings relating to
transactions between the Debtor and its creditors; and
e. provide other necessary legal services.
The Debtor agreed to compensate the firm's attorneys at the rate of
$475 per hour, plus expenses.
As disclosed in court filings, Sheehan does not represent any
interest adverse to the Debtor or its estate.
The firm can be reached through:
Martin P. Sheehan, Esq.
SHEEHAN & ASSOCIATES, PLLC
1 Community St., Ste 200
Wheeling WV 26003
Tel: (304) 232-1064
Fax: (304) 232-1066
Email: SheehanBankruptcy@WVDSL.net
SheehanParalegal@WVDSL.net
About D&D Trucking
D&D Trucking, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. N.D. W.Va. Case No. 25-00075) on
February 24, 2025, listing between $100,001 and $500,000 in both
assets and liabilities.
Martin P. Sheehan, Esq. at Sheehan & Associates, P.L.L.C. presides
over the case.
DANIMER SCIENTIFIC: Has Six Weeks to Secure Buyer
-------------------------------------------------
Steven Church of Bloomberg News reports that Danimer Scientific has
around six weeks to find a buyer willing to keep its bioplastics
factories and labs operational; otherwise, the assets will be
liquidated.
US Bankruptcy Judge Mary Walrath approved a $1 million loan to
facilitate the auction process as part of the company's insolvency
case. According to the loan terms, Danimer must secure a qualified
bid for its assets in Kentucky, Georgia, and New York within
approximately six weeks, the report states.
About Danimer Scientific Inc.
Danimer Scientific, Inc. is a performance polymer company
specializing in bioplastic replacement for traditional
petroleum-based plastics. The company is based in Bainbridge,
Georgia.
Danimer Scientific Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-10523) on March 18,
2025. In its petition, the Debtor reports estimated assets between
$500 million and $1 billion and estimated liabilities between $100
million and $500 million.
Honorable Bankruptcy Judge Mary F. Walrath handles the case.
The Debtor is represented by:
Daniel J. DeFranceschi, Esq.
Richards, Layton & Finger1
One Rodney Square, P.O. Box 551
Wilmington, DE 19899
Phone: 302-651-7700
Fax: 302-651-7701
DAV SUB: Voluntary Chapter 11 Case Summary
------------------------------------------
Debtor: DAV Sub, Inc.
Continuum Health Technologies
317 Ranch Road 620 S.
Austin, TX 78734
Business Description: DAV Sub, Inc., operating as Continuum Health
Technologies, is a provider of business
process services, specializing in cloud-
based solutions to improve healthcare
operations, particularly in revenue cycle
management. The Company's suite of products
automates key processes like patient
estimations, claims processing, data
aggregation, and collections. With tools
like Estimator, Discovery, Guardian, and
Challenger, healthcare organizations can
increase financial transparency, reduce
claim denials, and streamline revenue cycle
management through automation and predictive
analytics.
Chapter 11 Petition Date: March 20, 2025
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 25-40968
Judge: Hon. Edward L Morris
Debtor's Counsel: Jeff Prostock, Esq.
VARTABEDIAN HESTER & HAYNESS LLP
301 Commerce St. Ste 3635
Fort Worth TX 76102
Tel: (817) 877-4223
Email: jeff.prostok@vhh.law
Total Assets as of March 31, 2025: $1,418,538
Total Liabilities as of March 31, 2025: $2,868,496
The petition was signed by Sanjeev Kaila as executive chairman and
CEO.
The Debtor failed to provide a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/YYKC4FA/DAV_SUB_Inc__txnbke-25-40968__0001.0.pdf?mcid=tGE4TAMA
DAVID KIMMEL: Case Summary & Four Unsecured Creditors
-----------------------------------------------------
Debtor: David Kimmel Design LLC
3500 Easy Street
Dallas TX 75247
Business Description: David Kimmel Design, established in December
2012, is a luxury floral design company
specializing in creating custom, high-end
floral arrangements for exclusive events,
known for its elegance and innovation. With
a global reach, David Kimmel Design has
completed significant projects in countries
like France, Italy, Germany, and Belgium.
The Company excels in delivering
personalized, breathtaking floral designs
that reflect the unique visions of its
clients.
Chapter 11 Petition Date: March 21, 2025
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 25-30979
Debtor's Counsel: Brandon Tittle, Esq.
TITTLE LAW GROUP, PLLC
1125 Legacy Dr., Suite 230
Frisco, TX 75034
Tel: 972-213-2316
E-mail: btittle@tittlelawgroup.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jason Chandler as chief financial
officer.
A copy of the Debtor's list of four unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/BBICWCA/David_Kimmel_Design_LLC__txnbke-25-30979__0003.0.pdf?mcid=tGE4TAMA
A complete version of the petition can be accessed for free on
PacerMonitor at:
https://www.pacermonitor.com/view/A3J5EKQ/David_Kimmel_Design_LLC__txnbke-25-30979__0001.0.pdf?mcid=tGE4TAMA
DIAMOND SURFACES: Case Summary & 12 Unsecured Creditors
-------------------------------------------------------
Debtor: Diamond Surfaces and Supply, Inc.
5415 Pioneer Park Blvd.
Tampa, FL 33634
Business Description: Established in 2018, Diamond Surfaces offers
high-quality flooring products, including
engineered wood and AquaShield options. The
Company works with trusted suppliers like
AquaShield for water-resistant flooring,
Sika Adhesives for strong bonding, True
Touch for engineered wood, Titan Surfaces
for durable options, and Top Star
Underlayment for added stability and noise
reduction. Focused on innovation and
customer satisfaction, Diamond Surfaces
provides a flooring visualizer to help
clients choose the best products for their
needs.
Chapter 11 Petition Date: March 20, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-01682
Judge: Hon. Roberta A Colton
Debtor's Counsel: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: (813) 877-4669
Fax: (813) 877-5543
Email: All@tampaesq.com
Total Assets: $3,413,291
Total Liabilities: $1,733,616
The petition was signed by Gabriel Rinehart as vice president.
A full-text copy of the petition, which includes a list of the
Debtor's 12 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/EFRB5DY/Diamond_Surfaces_and_Supply_Inc__flmbke-25-01682__0001.0.pdf?mcid=tGE4TAMA
DRAKSIN PROPERTIES: Seeks to Tap Orville & McDonald Law as Counsel
------------------------------------------------------------------
Draksin Properties, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of New York to employ Orville &
McDonald Law, PC as its counsel.
The firm will provide these services:
(a) advise the Debtor with respect to its powers and duties in
the continued operation of its business and in the management of
its property;
(b) take necessary action to avoid liens against the Debtor's
property, remove restraints against its property and such other
actions to remove any encumbrances or liens which are avoidable;
(c) take necessary action to enjoin and stay until final
decree herein any attempts by secured creditors to enforce liens
upon property of the Debtor's in which property it has substantial
equity;
(d) represent the Debtor in any proceedings which may be
instituted in this court by creditors or other parties during the
course of this proceeding;
(e) prepare on behalf of the Debtor necessary legal papers;
and
(f) perform all other legal services or to employ attorneys
for such services.
The firm will be paid at these hourly rates:
Peter Orville, Attorney $350
Zachary McDonald, Attorney $300
Staff $125
In addition, the firm will seek reimbursement for expenses
incurred.
The firm also requested a retainer of $10,562 from the Debtor.
Mr. Orville disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Peter A. Orville, Esq.
Orville & McDonald Law, P.C.
30 Riverside Drive
Binghamton, NY 13905
Telephone: (607) 770-1007
About Draksin Properties
Draksin Properties, Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D.N.Y. Case No. 25-30159) on March 6,
2025, listing under $1 million in both assets and liabilities.
Peter A. Orville, Esq., at Orville & McDonald Law, P.C. serves as
the Debtor's counsel.
DUNIMUS OUTREACH: Hires John G. Rhyne as Bankruptcy Counsel
-----------------------------------------------------------
Dunimus Outreach Ministries, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina to
employ John Rhyne, Esq., an attorney practicing in Wilson, North
Carolina, as its legal counsel.
The attorney will represent and assist the Debtor in carrying out
its duties under the provisions of Chapter 11 of the Bankruptcy
Code.
The attorney received an initial retainer of $3,738 which includes
the filing fee.
Mr. Rhyne disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The attorney can be reached at:
John G. Rhyne, Esq.
P.O. Box 8327
Wilson, NC 27893
Telephone: (252) 234-9933
About Dunimus Outreach Ministries, Inc.
Dunimus Outreach Ministries, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C.
Case No. 25-00692) on February 27, 2025, listing $100,001 to
$500,000 in assets and $50,001 to $100,000 in liabilities.
John G. Rhyne, Esq. at John G. Rhyne, Attorney At Law, represents
the Debtor as counsel.
EDMONDS WELLNESS: Seeks Subchapter V Bankruptcy in Washington
-------------------------------------------------------------
On March 20, 2025, Edmonds Wellness Clinic Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Western District
of Washington. 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 Edmonds Wellness Clinic Inc.
Edmonds Wellness Clinic Inc. is a comprehensive naturopathic and
alternative medicine center located in Edmonds, Washington.
Edmonds Wellness Clinic Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-10741) on
March 20, 2025. In its petition, the Debtor reports estimated
assets up to $50,000 and estimated liabilities between $500,000 and
$1 million.
Honorable Bankruptcy Judge Christopher M. Alston handles the
case.
The Debtor is represented by:
Thomas D Neeleman, Esq.
Neeleman Law Group
1403 8th Street
Marysville, WA 98270
Phone: 425-212-4800
ELEGANZA TILES: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The U.S. Trustee for Region 16 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Eleganza Tiles, Inc.
About Eleganza Tiles Inc.
Eleganza Tiles Inc. is a distributor of ceramic, porcelain, and
glass tiles throughout North America, catering to both residential
and commercial markets. The Company's diverse offerings encompass
European cabinetry, luxurious bathroom fixtures, and innovative
countertops, designed to inspire and meet the needs of designers,
architects, builders, and homeowners.
Eleganza Tiles Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10535) on March 2,
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 Scott C. Clarkson handles the case.
The Debtor is represented by:
Jeffrey B. Smith, Esq.
Curd, Galindo & Smith, LLP
301 E. Ocean Blvd., Suite 1700
Long Beach, CA 90802
Tel: 562-624-1177
Fax: 562-624-1178
Email: jsmith@cgsattys.com
ELENAROSE CAPITAL: To Sell Coal Transportation Business at Auction
------------------------------------------------------------------
ElenaRose Capital LLC and its affiliates, Buchta Leasing LLC, Elmer
Buchta Trucking LLC, Transport Acquisitions LLC, and WBF LLC, seek
approval from the U.S. Bankruptcy Court for the Southern District
of Indiana, Evansville Division, to sell Assets at Auction, free
and clear of any liens, interest, and encumbrances.
The Debtor is mainly engaged providing coal transportation and
since its acquisition by Transport Acquisitions LLC, the price of
coal has significantly increased, resulting in customers reducing
their use of coal.
The decreased revenue from customers' reduction in coal caused cash
flow issues which led the Debtor's filing of voluntary petition.
The lienholders of the Debtor's Property include KTB Equity Inc.
and Peapack Capital Corp.
Included in the sale are all assets of the operating Debtors,
Buchta Leasing LLC, Elmer Buchta Trucking LLC, and WBF LLC.
The Debtors believe that the proposed sale process will achieve the
highest or otherwise best price of the Assets and will further
assist the Debtors in monetizing estate assets for the benefit of
creditors.
The Debtors believe that the Bid Procedures designed to maximize
the value received for the Assets because they prescribe a timely
and efficient bid process while providing bidders with adequate
time and information to submit a timely bid.
The auction contemplated by the bid procedures will be conducted by
Newpoint Advisors Corporation and take place at the offices of
Kroger, Gardis, and Regas, L.L.P., 111 Monument Circle, Suite 900,
Indianapolis, Indiana 46204. The Auction will be conducted one
business day prior to the Sale Hearing.
A Qualifying Bidder shall tender an earnest money deposit of 10
percent of the proposed purchase price for the sale of the assets.
Because the ultimate remedy for lien holders is to sell the Assets
in order to pay their claims, Debtors believe that the sale will
result in the Lien Holders realizing the same value in the Assets
toward their respective claims as any other sale process would
realize and in less time with far less costs to all parties.
About ElenaRose Capital LLC
ElenaRose Capital LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 23-70665-AKM-11) on
Sept. 8, 2023. In the petition signed by Louis Capolino,
president/manager, the Debtor disclosed up to $50,000 in assets and
up to $10 million.
Judge Andrea K. McCord oversees the case.
Weston E. Overturf, Esq., at Kroger, Gardis & Regas, LLP, is the
Debtor as legal counsel.
ELITE SURGERY: Seeks Chapter 11 Bankruptcy in California
--------------------------------------------------------
On March 17, 2025, Elite Surgery Center LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Central District
of California. According to court filing, the
Debtor reports $2,833,257 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Elite Surgery Center LLC
Elite Surgery Center LLC, doing business as Elite Robotic Surgery
and Elite Robotic Surgery Center, is an ambulatory surgery center
specializing in outpatient surgical procedures that do not require
overnight hospitalization. The center offers advanced, minimally
invasive surgeries, often utilizing robotic technology to enhance
precision and recovery times.
Elite Surgery Center LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal.Case No. 25-12149) on March 17,
2025. In its petition, the Debtor reports total assets of $716,715
and total liabilities of $2,833,257.
Honorable Bankruptcy Judge Vincent P. Zurzolo handles the case.
The Debtor is represented by:
Alan W. Forsley, Esq.
FLP LAW GROUP LLP
1875 Century Park East, Ste 2230
Los Angeles, CA 90067
Tel: (310) 284-7350
Fax: (310) 432-5999
E-mail: alan.forsley@flpllp.com
EXACTECH INC: Reaches $10MM Chapter 11 Deal with TPG
----------------------------------------------------
Rick Archer of Law360 reports that on Friday, March 21, 2025,
counsel for medical implant maker Exactech informed a Delaware
bankruptcy judge that the company has reached a $10 million
settlement to resolve potential claims against its equity sponsor,
just one week before seeking approval to proceed with voting on its
Chapter 11 plan.
About Exactech, Inc.
Exactech Inc. -- https://www.exac.com/ -- is a joint-replacement
implant manufacturer owned by TPG Capital.
Exactech Inc. and its affiliates sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-12441) on Oct.
29, 2024. In the petition filed by Donna H. Edwards, as general
counsel and senior vice president, Exactech estimated assets and
liabilities between $100 million and $500 million each.
Young Conaway Stargatt & Taylor, LLP serves as as co-counsel to the
Debtors. Riveron Management Services, LLC is the Debtors' chief
restructuring officer. Centerview Partners LLC is the investment
banker. Kroll Restructuring Administration LLC is the claims agent
and administrative advisor.
FARIFOX CORP: Hires Durand and Associates as Attorney
-----------------------------------------------------
Farifox Corporation seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Texas to hire Durand and Associates,
P.C. as attorneys.
The firm will render these services:
(a) advise the Debtor of its rights, duties, and powers;
(b) prepare legal documents;
(c) represent the Debtor at all hearings, meetings of
creditors, conferences, trials, and other proceedings in this case;
and
(d) perform such other legal services as may be necessary in
connection with this case.
Daniel Durand, III, Esq., the main attorney in this representation,
will be paid at his hourly rate of $375.
Mr. Durand disclosed in a court filing that the firm is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Daniel C. Durand, III, Esq.
Durand & Associates, PC
522 Edmonds, Suite 101
Lewisville, TX 75067
Telephone: (972) 221-5655
Facsimile: (972) 221-9569
Email: durand@durandlaw.com
About Farifox Corporation
Farifox Corporation, d/b/a AestheticFX, doing business as
AestheticFX, is a medical spa based in Frisco, TX, specializing in
advanced aesthetic services designed to enhance both appearance and
well-being. These services include injectables, skin treatments
like RF resurfacing and chemical peels, laser hair removal, tattoo
removal, and body contouring. AestheticFX utilizes state-of-the-art
technology, including Alma's Harmony XL PRO and Soprano ICE
Platinum systems, to provide non-invasive, effective treatments for
their clients.
Farifox Corporation sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D. Tex.Case No. 25-40488) on
February 21, 2025. In its petition, the Debtor reports total assets
as of Feb. 14, 2025 amounting to $264,737 and total liabilities as
of Feb. 14, 2025 of $1,185,640.
The Debtor is represented by Daniel C. Durand III, Esq. at DURAND &
ASSOCIATES, PC.
FELTRIM TUSCANY: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Feltrim Tuscany Preserve, LLC
124 Kenny Blvd.
Haines City, FL 33844
Chapter 11 Petition Date: March 20, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-01693
Judge: Hon. Catherine Peek Mcewen
Debtor's Counsel: Amy Denton Mayer, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
110 E. Madison St.
Suite 200
Tampa, FL 33602
Tel: 813-229-0144
Email: amayer@srbp.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Garrett Kenny as manager.
The Debtor has stated there are no unsecured creditors.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/4LSJDPA/Feltrim_Tuscany_Preserve_LLC__flmbke-25-01693__0001.0.pdf?mcid=tGE4TAMA
FIG & FENNEL: To Sell Liquor License to Jalisco Restaurant
----------------------------------------------------------
Fig & Fennel at MIA LLC and its affiliates seek permission from the
U.S. Bankruptcy Court for the Southern District of Florida, Fort
Lauderdale Division, to sell liquor license, free and clear of all
claims, liens, interests, and encumbrances.
The Debtor has previously sold their assets at the Miami-Dade
County International Airport and closed
their restaurant operations, making the need for alcoholic beverage
license no.: BEV2302208 for use in Miami-Dade County, Florida no
longer necessary for the Debtors' operations.
The Debtors entered into a loan agreement with Med Properties VII
LLC in which the Debtor's borrowed $150,000 using the Liquor
License as collateral for the Loan.
The Debtors obtain a buyer, Jalisco Restaurant Corp., a Florida
corporation, whose address is 1661 SW 8th Street, Homestead, FL
33033 for the Liquor License.
The Debtors also request authorization to use the proceeds of the
sale to pay-off the outstanding amounts under the loan.
The sale price is $215,000, which will, after the payment of the
loan, brokerage commission, and other related costs and expenses,
result in an additional approximately $25,000 in proceeds being
made available to the Debtors' estates.
The projected proceeds on the Transaction are as follows:
Purchase Price $215,000
Proration for 2025-2026 $ 1,670
Brokerage Fee ($ 21,500)3
Loan Payoff ($168,000)
Transfer Fee* ($0-5,000)*
Renewal for 2025-2026** ($ 1,820)
Net Sale Proceeds $20,350-$25,350
The Debtor proposes to sell the Property free and clear of all
claims, liens, liabilities, rights, interests, and encumbrances.
About Fig & Fennel at MIA LLC
Fig & Fennel at MIA, LLC, and affiliates own and operate
restaurants offering a broad selection of grab-and-go sandwiches,
salads, bowls, snacks, desserts, and more.
The Debtors filed Chapter 11 petitions (Bankr. S.D. Fla. Lead Case
No. 23-18515) on Oct. 18, 2023. Robert Siegmann, manager, signed
the petitions. At the time of the filing, Fig & Fennel at MIA
reported $2,956,271 in total assets and $523,057 in total
liabilities.
Judge Scott M. Grossman oversees the cases.
Adam Leichtling, Esq., at Lapin & Leichtling, LLP, is the Debtors'
legal counsel.
FIRSTBASE.IO INC: Taps Quinn and Dilworth as Special Counsels
-------------------------------------------------------------
Firstbase.Io, Inc. filed a supplemental application seeking
approval from the U.S. Bankruptcy Court for the Southern District
of New York to employ Quinn Emanuel Urquhart & Sullivan, LLP and
Dilworth Paxson LLP as special litigation counsel.
The Debtor seeks to expand the scope of Quinn Emanuel and
Dilworth's employment to include representation of the Debtor and
its officers, Filipe Senna and Mark Milastsivy in the adversary
proceeding titled Harbor Business Compliance Corporation v.
Firstbase.io, Inc., Filipe Senna, and Mark Milastsivy commenced in
the within bankruptcy proceeding under Adv. Pro. No. 25-01032-lgb.
Debtor shall pay Quinn Emanuel a fixed-fee in the amount of
$600,000 to handle the appeal through its conclusion.
In addition, if the Appeal results in the Final Judgment being
reduced by more than $11,000,000, Quinn Emanuel shall be entitled
to and shall be paid an additional sum of $300,000.
Furthermore, if the Appeal results in the Final Judgment being
reduced to less than four million dollars, Quinn Emanuel shall be
entitled to and shall be paid the sum of $300,000 in addition to
the Success Fee.
Derek Shaffer, a partner at Quinn Emanuel Urquhart & Sullivan, LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firms can be reached at:
Derek Shaffer, Esq.
Quinn Emanuel Urquhart & Sullivan, LLP
500 Delaware Avenue, Suite 220
Wilmington, DE 19801
Telephone: (302) 302 4000
Facsimile: (302) 302-4010
- and -
David Rodkey, Esq.
Dilworth Paxson LLP
1500 Market St., Suite 3500E
Philadelphia, PA 19102
Telephone: (215) 575-7027
Email: drodkey@dilworthlaw.com
About Firstbase.io Inc.
Firstbase.io, Inc. is a technology company that provides business
formation services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11647) with $1 million
to $10 million in assets and $10 million to $50 million in
liabilities.
Judge Lisa G. Beckerman oversees the case.
The Debtor is represented by Dawn Kirby, Esq., at Kirby Aisner &
Curley, LLP.
FLATIRON NEW: Unsecureds to Get Share of Income for 3 Years
-----------------------------------------------------------
Flatiron New Mexico, LLC, filed with the U.S. Bankruptcy Court for
the District of New Mexico a Subchapter V Plan dated February 28,
2025.
Flatiron New Mexico LLC, d/b/a Flatiron Bites & Brews
(https://www.eatflatiron.com/), is a family-owned restaurant
serving craft foods, local beer, and drinks.
The Debtor received its license in May, 2024, and has been
operating since then under it. However, Debtor had to borrow from
sources including MCAs due to the licensing delay that placed
significant restraints on its cash flow once it did obtain its
license. Debtor additionally incurred payroll taxes during that
period, and fell behind on its rent.
Pre-petition, Debtor had an agreement with its landlord to pay 1.5
times its rent each month to catch up, however the landlord gave
short notice that it would no longer accept such arrangements,
forcing this chapter 11 reorganization to allow the Debtor to
reorganize and continue operating.
The total amount of Claims (including disputed Claims) is
$209,823.03, consisting of secured Claims: $3,700.00; priority
Claims: $72,000.31; and unsecured Claims (including lease arrears):
$134,122.72.
The Debtor believes that it will be able to pay all claims in full
during the three-year the plan period, with the exception of
priority tax claims which will be paid within 60 months of the
Petition Date.
Class 3 consists of Allowed General Unsecured Non-Priority Claims.
Class 3 is impaired. Class 3 Creditors will be paid pro rata in
annual payments with the first such payment due on the first
anniversary of the Effective Date, paid from Debtor's disposable
income for the previous year as defined in Section 1191(c)(2)(A) of
the Bankruptcy Code. Such payments shall continue for a period of 3
years at the rate of 0.00% interest per annum. Any amounts
remaining unpaid at that time shall be discharged pursuant to
Sections 1192 and 1141(d) of the Bankruptcy Code, however it is
expected that Debtor will pay all Class 3 Claims in full within
that period.
The Debtor shall include with each annual payment 12 months of
Profit and Loss Statements, a summary of the monthly and total
amounts calculated as its disposable income for the 12 months, and
the pro rata amounts distributed to each Class 3 Claimant.
Class 5 consists of Allowed Claims of Equity Interest Holders.
Class 4 is unimpaired. Equity Interest Holders shall retain their
interests in the Debtor.
The Debtor will fund this Plan through its ongoing operations of
its restaurant location in Albuquerque, NM.
A full-text copy of the Subchapter V Plan dated February 28, 2025
is available at https://urlcurt.com/u?l=lEbKT5 from
PacerMonitor.com at no charge.
About Flatiron New Mexico
Flatiron New Mexico, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D.N.M. Case No. 24-11279) on Nov. 27, 2024, with up to
$50,000 in assets and up to $500,000 in liabilities. Christian
Manzer, manager, signed the petition.
Judge David T. Thuma oversees the case.
The Debtor is represented by:
Chris M. Gatton, Esq.
Gatton & Associates, P.C.
10400 Academy NE, Suite 350
Albuquerque, NM 87111
Tel: (505) 271-1053
Fax: (505) 271-4848
E-mail: chris@gattonlaw.com
FLUID MARKET: Plan Exclusivity Period Extended to May 14
--------------------------------------------------------
Judge Craig T. Goldblatt of the U.S. Bankruptcy Court for the
District of Delaware extended Fluid Market Inc. and Fluid Fleet
Services, LLC's exclusive periods to file a plan of reorganization
and obtain acceptance thereof to May 14 and July 14, 2025,
respectively.
As shared by Troubled Company Reporter, the Debtors explain that
they continue to make good-faith progress. Early on in these cases,
the Debtors obtained first day relief to ensure a smooth transition
into chapter 11 and filed their schedules of assets and liabilities
and statements of financial affairs, among other tasks. The Debtors
have also conducted a sale process that resulted in entry of the
Sale Order approving the Sale to Kingbee, with the sale closing
effective as of December 20, 2024.
Among other activities, the Debtors are requesting an extension of
the Exclusive Periods to focus on working with the Committee and
Kingbee to implement certain components of the Global Settlement.
Continued exclusivity will permit the Debtors to maintain
flexibility. All stakeholders will benefit from such continued
stability and predictability.
The Debtors assert that creditors will not be prejudiced by
extending the Exclusive Periods. These cases are less than four
months old. The Debtors' request for an extension of the Exclusive
Periods is the Debtors' first such request. During this short
time, the Debtors have accomplished a great deal: they closed the
Sale to Kingbee, are working to effectuate the Global Settlement,
are continuing to explore the disposition of their other remaining
assets.
The Debtors further assert that all stakeholders would benefit from
the continued stability and predictability of having the Debtors
oversee the remaining actions under the Global Settlement, and the
Debtors will continue to work constructively with their creditors
and all parties in interest to resolve any outstanding issues on a
consensual basis whenever possible. Furthermore, the Debtors have
continued to pay their debts as they become due throughout the
pendency of these chapter 11 cases.
Counsel to the Debtors:
Laura Davis Jones, Esq.
David M. Bertenthal, Esq.
Timothy P. Cairns, Esq.
Pachulski Stang Ziehl & Jones LLP
919 North Market Street, 17th Floor
P.O. Box 8705
Wilmington, DE 19899
Telephone: (302) 652-4100
Facsimile: (302) 652-4400
Email: ljones@pszjlaw.com
dbertenthal@pszjlaw.com
tcairns@pszjlaw.com
About Fluid Market
Fluid Market, Inc., et al., operate and manage a technology-based,
peer-to-peer truck-sharing platform across the United States with a
fleet of nearly 5,500 vehicles owned by their non-Debtor affiliates
or third-party owners who have elected to put their vehicles on the
Debtors' platform, https://www.fluidtruck.com. Customers have quick
and easy access to the right vehicle whenever they need it via the
Debtors' mobile app and website.
Fluid Market Inc. and Fluid Fleet Services, LLC sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
24-12363) on Oct. 16, 2024. In the bankruptcy petition, Fluid
Market reported $50 million to $100 million in assets and
liabilities.
The petition was signed by T. Scott Avila as chief executive
officer.
Pachulski Stang Ziehl & Jones LLP serves as the Debtors' counsel.
Paladin Management Group, LLC acts as the Debtors' restructuring
advisor; SSG Capital Advisors, LLC acts as investment banker to the
Debtors; and Epiq Corporate Restructuring LLC is claims and
noticing agent to the Debtors.
FOREVER 21: U.S. Operator F21 OpCo Files Chapter 11, Eyes Wind Down
-------------------------------------------------------------------
F21 OpCo, LLC, operator of Forever 21 stores and licensee of the
Forever 21 brand in the United States, announced on March 16, 2025,
that it and certain of its U.S. subsidiaries have entered into a
Plan Support Agreement with the Company's secured lenders and
commenced voluntary chapter 11 cases in the United States
Bankruptcy Court for the District of Delaware. Through their
chapter 11 cases, the Company will implement an orderly wind down
of its U.S. business while continuing to conduct a marketing
process to solicit interest in a going concern transaction or a
sale of some or all of its assets.
The PSA is designed to enable the Company to move through the
chapter 11 process as quickly and efficiently as possible. Through
the PSA and the chapter 11 proceedings, the Company will conduct
liquidation sales at its stores while simultaneously conducting a
court--supervised sale and marketing process for some or all of its
assets. The Company also will file a motion with the Court seeking
authority to market F21 OpCo's assets through an auction pursuant
to section 363 of the Bankruptcy Code. In the event of a successful
sale, the Company may pivot away from a full wind down of
operations to facilitate a going-concern transaction. The Company
believes this dual-path process will best maximize optionality and
value.
The Company's Forever 21 stores and website in the United States
will remain open and continue serving customers as the Company
begins its process of winding down operations. The Company has
filed customary motions with the Court seeking a variety of
"first-day" relief, including approval of the consensual use of
cash collateral to pay employee wages and benefits in the ordinary
course of business and otherwise fund operations through the
chapter 11 process.
Brad Sell, Chief Financial Officer of F21 OpCo said, "Following the
conclusion of our strategic review and after careful deliberation,
we made the decision to file for chapter 11 to implement a
court-supervised marketing process to solicit a going concern
transaction, and, in the absence of such an arrangement, an orderly
wind down of operations. While we have evaluated all options to
best position the Company for the future, we have been unable to
find a sustainable path forward, given competition from foreign
fast fashion companies, which have been able to take advantage of
the de minimis exemption to undercut our brand on pricing and
margin, as well as rising costs, economic challenges impacting our
core customers, and evolving consumer trends. As we move through
the process, we will work diligently to minimize the impact on our
employees, customers, vendors and other stakeholders."
Mr. Sell continued, "On behalf of the Company, I'd like to express
our deep appreciation for the hard work of our dedicated employees
and their commitment to our customers. We are also grateful for the
many years of support from our partners and our loyal customers,
who have allowed us to serve as a fashion industry leader and go-to
retailer for generations."
Forever 21's locations outside of the United States are operated by
other licensees and are not included in the chapter 11 filings.
Authentic Brands Group continues to own the intellectual property
associated with the Forever 21 brand and may license the brand to
other operators. The non-US Forever 21 locations and its
international ecommerce sites will continue operating in the
ordinary course.
Additional information regarding F21 OpCo's chapter 11 proceedings,
including court filings and information about the claims process
are available at www.veritaglobal.net/forever21. Questions should
be submitted to the Company's claims agent Verita Global at
www.veritaglobal.net/forever21/inquiry or by phone at 866-480-0830
(USA or Canada) or +1 781-575-2040 (International).
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Young Conaway
Stargatt & Taylor, LLP are serving as the Company's proposed legal
counsel, BRG is serving as the Company's proposed financial
advisor, and RCS Real Estate Advisors is serving as the Company's
proposed real estate advisor. SSG Capital Advisors, LLC is serving
as the Company's investment banker, and Reevemark is serving as
communications advisor to the Company.
About F21 OpCo
F21 OpCo, LLC is the operator of Forever 21 stores and licensee of
the Forever 21 brand in the United States. For more information,
including online shopping and a list of stores, visit
forever21.com.
FOSSIL CREEK: Seeks Chapter 11 Bankruptcy Protection in Texas
-------------------------------------------------------------
On March 17, 2025, Fossil Creek A2A Developments LLC filed Chapter
11 protection in the U.S. Bankruptcy Court for the Northern
District of Texas. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
About Fossil Creek A2A Developments LLC
Fossil Creek A2A Developments LLC is a real estate debtor with a
single asset, as defined in 11 U.S.C. Section 101(51B).
Fossil Creek A2A Developments LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No.: 25-40917) on
March 17, 2025. In its petition, the Debtor reports estimated
assets up to $50,000 and estimated liabilities between $1 million
and $10 million.
The Debtor is represented by:
Michael P. Cooley, Esq.
REED SMITH
2850 N. Hardwood Street
Dallas, TX 75201
Tel: (469) 680-4213
E-mail: mpcooley@reedsmith.com
FREE SPEECH: Judge Denies Newest Infowars Asset Request
-------------------------------------------------------
Angelica Serrano-Roman of Bloomberg Law reports that a judge has
rejected efforts to revive the sale of Alex Jones' Infowars assets
after two companies expressed interest in acquiring them through
the right-wing conspiracy theorist's bankruptcy.
Judge Christopher Lopez of the US Bankruptcy Court for the Southern
District of Texas denied a bid from First United American Companies
LLC (FUAC) to purchase assets from Infowars parent company Free
Speech Systems LLC, according to an order filed Wednesday, March
26, 2025.
Reaffirming his previous decision from a February hearing that
blocked the asset sale, Lopez wrote, "Nothing has changed. The
Court won't require the Chapter 7 Trustee to conduct another
auction for the FSS assets." He also ruled that FUAC, which
operates ShopAlexJones.com, lacks standing to seek a sale of the
assets.
FUAC had filed a motion last month to restart the bidding process,
offering an $8 million cash bid to the bankruptcy trustee—double
its previous offer.
Last week, families of Sandy Hook Elementary School shooting
victims, who hold over $1 billion in defamation-related judgments
against Jones and his companies, urged Lopez not to resume the
process, arguing that another contested sale would incur
significant administrative costs.
In a previous attempt last year, the families supported Global
Tetrahedron LLC, the parent company of the satirical news site The
Onion, in its bid to acquire Infowars' assets. However, Lopez
rejected that offer, citing a lack of transparency in the original
auction.
Meanwhile, artificial intelligence entertainment company WOW.AI LLC
also expressed interest in acquiring Free Speech Systems' assets
through bankruptcy last February 2025.
Although Lopez has ended the bidding process for the assets, he
indicated during the February hearing that he would allow the sale
of the company's equity.
FUAC is represented by Hawash Cicack & Gaston LLP.
The case is Jones, Bankr. S.D. Tex., No. 22-33553, order 3/19/25.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
FRUGALITY INC: Seeks to Hire Bruner Wright as Bankruptcy Counsel
----------------------------------------------------------------
Frugality, Inc. seeks approval from the U.S. Bankruptcy Court for
the Northern District of Florida to employ Bruner Wright, PA to
handle its Chapter 11 case.
The firm's counsel and staff will be paid at these hourly rates:
Robert Bruner, Attorney $450
Byron Wright III, Attorney $400
Samantha Kelley, Attorney $375
Paralegal $175
The firm received a retainer of $7,000 from the Debtor.
Mr. Wright III disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Bryon Wright III, Esq.
Bruner Wright, P.A.
2868 Remington Green Circle, Suite B
Tallahassee, FL 32308
Telephone: (850) 385-0342
Facsimile: (850) 270-2441
Email: twright@brunerwright.com
About Frugality Inc.
Frugality, Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-50253) on March 3,
2025, listing under $1 million in both assets and liabilities.
Bryon Wright III, Esq., at Bruner Wright, P.A. serves as the
Debtor's counsel.
FTX TRADING: Crypto Lobbyist Fails to Secure Criminal Case Delay
----------------------------------------------------------------
Katryna Perera of Law360 reports that the federal prosecutors in
New York on Thursday, March 20, 2025, opposed a request by attorney
and crypto lobbyist Michelle Bond to extend the deadline for
pre-trial motions until June, arguing that her inability to access
assets—resulting from bankruptcy proceedings involving her
FTX-affiliated husband—does not justify a delay.
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases. White
collar crime specialist Mark S. Cohen has reportedly been hired to
represent SBF in litigation. Lawyers at Paul Weiss previously
represented SBF but later renounced representing the entrepreneur
due to a conflict of interest.
GALILEO SCHOOL: Moody's Alters Outlook on Ba1 Bond Rating to Neg.
-----------------------------------------------------------------
Moody's Ratings has revised Galileo School for Gifted Learning,
FL's outlook to negative from stable and affirmed the Ba1 revenue
bond rating. The school has approximately $34 million in debt
outstanding.
The negative outlook reflects risks to the school's operating
stability and relatively narrow liquidity from the construction and
completion of Galileo Early Learning Center project.
RATINGS RATIONALE
The affirmation of the Ba1 rating reflects the school's very good
competitive profile as demonstrated by strong academic performance
with stable enrollment and solid student demand. Both of Galileo's
campuses are operating at full enrollment and maintain healthy
waiting lists. Good enrollment trends along with favorable funding
has resulted in healthy operating performance, reflected in a
two-year average operating cash flow margin of 15% and 1.5x debt
service coverage in fiscal 2024. For fiscal 2025, management has
budgeted for positive operating performance and 1.3x annual debt
service coverage, although current enrollment is higher than
originally budgeted, so actual performance is likely to be better.
Balancing these strengths are the school's high leverage from debt
and relatively narrow liquidity. Spendable cash and investments
covers just 9% of total outstanding debt. Liquidity was 75 days
cash on hand in fiscal 2024.
RATING OUTLOOK
The negative outlook reflects risks associated with the
construction of the Galileo Early Learning Center project in light
the school's relatively narrow liquidity. While management has
demonstrated demand for the new facility, higher-than-anticipated
projects costs or delays in opening the new facility would pressure
the school's operating performance, resulting in narrower liquidity
and debt service coverage.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
-- Significant reduction in debt resulting in spendable cash and
investments to debt above 28%
-- Strengthening of operating cash flow margins resulting in days
cash on hand above 100
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
-- Any increase in leverage or decline in liquidity resulting in
spendable cash and investments to debt under 7%
-- Weakening of competitive profile as evidenced by declining
student demand or academic performance
PROFILE
The Galileo School for Gifted Learning operates two schools that
serves students in grades Kindergarten to Eighth. Both schools are
located in Seminole County and authorized by the Seminole County
School District. Enrollment across both schools in 2024-25 was
1,398 students.
Galileo opened its first school (Riverbend) in 2011 and initially
served 133 students in Kindergarten through fifth grade. Riverbend
gradually added grades over the years and now serves students in
grades Kindergarten to Eighth grade. In the current school year,
Riverbend served 532 students, which is about the maximum capacity
at Galileo Riverbend.
The Galileo School opened a second school pursuant to a
high-performing charter school replication application in 2020.
Galileo's second school is known as Skyway and serves students in
grades Kindergarten to Eighth grade under the same policies,
procedures, programs, professional development, and course work
that are currently used at Riverbend. In the 2024-25 school year,
Skyway served 805 student in grades PreK-8, which is about the
maximum capacity Skyway Galileo.
METHODOLOGY
The principal methodology used in this rating was US Charter
Schools published in April 2024.
GCI LLC: S&P Places 'B+' Issuer Credit Rating to Watch Negative
---------------------------------------------------------------
S&P Global Ratings placed all its ratings on GCI LLC, including its
'B+' issuer credit rating, on CreditWatch with negative
implications.
The U.S. Court of Appeals for the Fifth Circuit found that the
Universal Service Fund (USF), as administered by the Federal
Communications Commission (FCC), to be unconstitutional. S&P is
monitoring the ongoing lawsuit against the USF program, especially
since GCI LLC has significant revenue exposure to USF subsidies.
The Supreme Court will hear the case on March 26th, due to the 5th
Circuit's ruling conflicting with the 6th and 11th Circuits, which
found no constitutional issues with the USF program. An adverse
ruling could require congressional action to preserve the USF
program.
The company is also expected to be divested from its parent,
Liberty Broadband Corp., in the summer of 2025, and the financial
policy implications are unclear.
The CreditWatch placement indicates the potential for a lower
rating in the coming months if the USF program is eliminated. S&P
plans to resolve the CreditWatch placement once it has more clarity
around USF.
GCI's reliance on the USF, which constitutes 42% of its revenue,
exposes the company to significant revenue risk should the program
be terminated. The USF program is designed to support
telecommunications services in underserved areas, and its future is
currently under judicial review. The FCC manages the fund, and it
is supported by service providers like GCI. Service providers
typically pass the cost of maintaining the fund to the consumer.
The judicial argument against USF stipulates that the consumers
paying the USF fee are not directly benefitting from the subsidies.
The potential loss of this subsidy revenue, which is very high
margin, could significantly diminish GCI's financial position and
may result in a multi-notch downgrade.
GCI's financial policy post spin-off remains unclear. S&P said, "We
still do not have clarity around GCI's financial policy after its
spin-off from Liberty Broadband, which is expected to occur in the
summer of 2025. Upon completion of the spin-off, we will assess
GCI's financial policy as a public, stand-alone entity. Under
existing ownership, GCI would upstream debt-financed dividends to
Liberty Broadband. We do not currently know what GCI's financial
policy, including dividend policy and target leverage, will look
like post spin off."
The company's proposed refinancing transaction is neutral for
credit quality. GCI plans to increase the size of its term loan A
from $250 million to $300 million while reducing its revolving
credit facility to $450 million from $550 million. The transaction
extends the company's maturities on its revolver and term loan by
five and six years, respectively. Overall, the transaction is
relatively leverage neutral, and S&P expects GCI's leverage will be
about 2.9x in 2025 (in-line with 2024).
GENERATIONS ON 1ST: Court Extends Cash Collateral Access to May 15
------------------------------------------------------------------
Generations on 1st, LLC and Parkside Place, LLC received another
extension from the U.S. Bankruptcy Court for the District of North
Dakota to use the cash collateral of Red River State Bank.
The order authorized the companies to use the bank's cash
collateral for the period from March 16 to May 15.
Red River State Bank's cash collateral includes rents from the
companies' mixed-use apartment buildings in South Dakota. The rents
are currently being held by a court-appointed receiver.
As of the petition date, the receiver is holding pre-bankruptcy
rents in the sum of $124,341.92 for Parkside and $229,184.07 for
Generations.
About Generations on 1st and Parkside Place
Generations on 1st, LLC, a company in Fargo, N.D., and its
affiliate Parkside Place, LLC filed Chapter 11 petitions (Bankr. D.
N.D. Lead Case No. 25-30002) on January 6, 2025. In their
petitions, Generations on 1st reported total assets of $13,567,037
and total liabilities of $12,137,102 while Parkside Place reported
$7,221,882 in assets and $5,599,522 in liabilities.
Judge Shon Hastings handles the cases.
The Debtors are represented by Maurice VerStandig, Esq. at The
Dakota Bankruptcy Firm.
Red River State Bank, as lender, is represented by:
Drew J. Hushka, Esq.
Vogel Law Firm
218 NP Avenue PO Box 1389
Fargo, ND 58107-1389
Tel. 701.237.6983
Email: dhushka@vogellaw.com
GENESIS ENERGY: S&P Alters Outlook to Positive, Affirms 'B' ICR
---------------------------------------------------------------
S&P Global Ratings revised the outlook on Genesis Energy L.P.
(Genesis or GEL) to positive from stable.
S&P said, "At the same time, we affirmed our 'B' issuer credit
rating on the partnership and our 'B' issue-level rating on its
senior unsecured debt. Our '3' recovery rating on the unsecured
notes is unchanged.
"The positive outlook reflects our expectation that GEL's S&P
Global Ratings-adjusted debt to EBITDA will be about 6.0x-6.2x in
2025 and 2026.
"The positive outlook is spurred by the recently announced
divestment of GEL's soda ash business. The approximately $1 billion
proceeds from the divestment will be used to repay existing debt.
Under our base-case forecast, we assume the partnership will
generate approximately $600 million of S&P Global Ratings-adjusted
EBITDA in 2025 and $650 million-$700 million in 2026. We also
assume GEL will maintain S&P Global Ratings-adjusted leverage of
6.2x and 6.0x in 2025 and 2026, respectively. The debt payment also
includes $250 million to repurchase class A preferred shares, which
we assessed as 100% debt."
In addition, the divestment of the soda ash segment will result in
$110 million of recurring savings annually. This includes repayment
of existing debt and the deconsolidation of the Alkali senior
notes, as well as maintenance capital expenditure (capex) related
to the soda ash business.
S&P said, "In our view, the divestment also reduces the volatility
of GEL's operating cash flow. Historically the soda ash segment was
the most volatile of GEL's operations, with contributions that
fluctuated between $150 million and $240 million depending on soda
ash prices. Despite the expansion of its Granger facility in 2023,
the soda ash segment's operating margin was down $70 million in
2024 due to weak prices and an outage at its Wastvaco facility.
"At the same time, we believe the company's 2025 EBITDA is still
dependent on the timely commissioning of multiple offshore pipeline
projects, namely Shenandoah in second quarter and Salamanca in the
third quarter. GEL's 2026 and 2027 EBITDA growth are dependent on
the timely startup of other projects.
"The positive outlook reflects our expectation that S&P Global
Ratings-adjusted leverage will approach 6.0x in the next 12 months.
We also expect Genesis will maintain adequate liquidity for the
next 12 months."
S&P could revise the outlook to stable if:
-- S&P expects Genesis will maintain leverage of more than 6.5x;
or
-- It faces liquidity issues.
These conditions could stem from lower-than-expected volumes
flowing through the company's midstream assets or delays in
commissioning of its offshore pipeline projects. In addition, these
conditions could also occur due to a change in the company's
financial policy.
S&P could raise the rating on GEL if it expects S&P Global
Ratings-adjusted debt to EBITDA will remain below 6.0x. This could
occur if Genesis pays down more debt and benefits from additional
cash flows from its new offshore pipeline projects.
GEORGIAN TRANSPORTATION: Seeks to Tap Estelle Miller as Accountant
------------------------------------------------------------------
Georgian Transportation Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to employ
Estelle Miller, a certified public accountant practicing in
Bellmore, New York, as its accountant.
The accountant will render these services:
(a) gather and verify all pertinent information required to
compile and prepare monthly operating reports; and
(b) prepare monthly operating reports for the Debtor.
Ms. Miller will be compensated at a monthly fee of $300.
She also received an initial retainer fee of $3,000 from the Debtor
on December 5, 2024.
Ms. Miller disclosed in a court filing that she is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The accountant can be reached at:
Estelle Miller, CPA
Bellmore, NY 11710
Telephone: (347) 570-7002
Email: estellemillercpa@gmail.com
About Georgian Transportation
Georgian Transportation Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-45163) on
December 11, 2024, listing under $1 million in both assets and
liabilities.
Judge Nancy Hershey Lord oversees the case.
The Debtor tapped the Law Offices of Alla Kachan, PC as counsel and
Estelle Miller, CPA as accountant.
GLOBAL NET: Fitch Puts 'BB+' IDR on Rating Watch Positive
---------------------------------------------------------
Fitch Ratings has placed the ratings of Global Net Lease, Inc.
(GNL) and its operating partnership, Global Net Lease Operating
Partnership, L.P., including its 'BB+' Issuer Default Rating (IDR)
and underlying issuances outstanding, on Rating Watch Positive.
The rating action follows GNL's announcement that it entered into a
binding agreement to sell its multi-tenant portfolio of 100
non-core properties to a subsidiary of RCG Ventures Holdings, LLC
for $1.8 billion at an 8.4% cash cap rate. This proposed
transaction accelerates the company's deleveraging plan,
potentially reducing leverage below the positive sensitivity.
The transaction is expected to close in three phases and should be
completed by the end of 2Q25. The resolution of the Rating Watch
may take longer than six months and is contingent upon the release
of capital structure details post-transaction, which will allow
Fitch to assess if GNL will achieve metrics consistent with or
above its existing 'BB+' IDR.
Key Rating Drivers
Better Leverage on the Horizon: GNL's leverage has remained high
since the 2023 merger with The Necessity Retail REIT Inc. (RTL). To
address this, GNL implemented a business plan focused on
deleveraging the balance sheet through strategic dispositions,
which it is successfully executing. The company closed $835 million
of dispositions in 2024 at a cash cap rate of 7.1%, surpassing
guidance. As a result, net debt was reduced by $734 million by YE
2024 and REIT leverage was 7.5x.
The RCG transaction would further accelerate GNL's debt reduction
efforts, as net proceeds of approximately $1.3 billion would be
used to repay the outstanding balance of the revolving credit
facility, leaving it largely undrawn. Additional benefits include
greater financial flexibility to address upcoming maturities, an
improved liquidity position and less secured debt on the balance
sheet ($470 million to be assumed by RCG). Company-reported net
debt to adjusted EBITDA is estimated to be 6.5x-7.1x post-close.
Sale of Multi-Tenant Portfolio: This transaction would position GNL
as a pure-play net lease REIT, with a focus on single-tenant
assets. Post-close, GNL is expected to generate recurring annual
G&A savings ($6.5 million) and a reduction in annual capex ($34
million). The company also expects the sale to simplify operations
by eliminating the complexities of owning multi-tenant retail
properties and enhance key portfolio metrics, such as occupancy and
NOI margins. However, the portfolio would be smaller and less
diversified.
Appropriately Diversified: GNL's portfolio is diversified by
geography, tenant and industry. At 4Q24, the top 10 tenants
represented 21% of the total, which is strong for the rating. Of
its 705 tenants, 31% have an actual investment-grade (IG) rating
(rated by Fitch or other NRSROs). The company estimates an
additional 29% at an implied IG rating. Following the close of the
RCG transaction, the percentage of actual and implied IG-rated
tenants is expected to increase to 66%, from 61%, suggesting
relatively better tenant credit quality.
Increased Retail, Less Office Exposure: As of 4Q24, multi- and
single-tenant retail comprised 28% and 21%, respectively, with
industrial/distribution at 34% and office at 18%. Prior to the RTL
merger, GNL's exposure to retail was 5% and office was 40%. Retail
has been exhibiting stable to positive fundamentals, while office
is seeing varying demand trends based on the asset type. Following
the close of the RCG transaction, the portfolio would be comprised
of 45% industrial/distribution, 30% retail and 25% office.
Long-Term Leases: At the 'BB+' level, the company has solid metrics
in terms of its lease maturity schedule, with a weighted average
remaining lease term (WALT) of 6.2 years as of 4Q24. There should
be improvement as GNL disposes of assets with shorter lease terms,
as well as from new leases and renewal activity. Pro forma for the
RCG transaction, the metric is expected to increase to 6.4 years.
However, this is lower than the 7.6 years for GNL on a standalone
basis as of 2Q23 and the net lease peer average of about 10 years.
Internally Managed: Concurrent with the merger, GNL's and RTL's
advisory and property management functions were internalized, which
has resulted in various savings. Management also pointed to a
simplified structure, enhanced corporate governance and anticipated
trading multiple expansion as additional benefits. However, in
Fitch's view, the internalization of management will not ameliorate
GNL's relatively more challenged access to capital.
Prior to the closing of the transaction, GNL and RTL were
externally managed by AR Global, LLC, a $12 billion global real
estate asset manager, which Fitch viewed as a modest credit
negative. Generally, an external management structure could result
in persistent equity valuation discount. In addition, institutional
investors generally favor internally managed REIT structures, given
dedicated management and fewer related party transactions and
potential interest conflicts.
Additional Announcements: GNL authorized a $300 million share
repurchase program, which Fitch views less favorably as this seems
to deviate from the company's primary goal of reducing debt. In the
meantime, in connection with the multi-tenant portfolio sale, the
board of directors plans to reset the quarterly dividend per share
to $0.190 from $0.275, starting in April 2025, which should
generate incremental cash flow.
Peer Analysis
Although GNL's portfolio quality compares well to peers, this is
offset by weaker leverage metrics. As of Dec. 31, 2024, REIT
leverage of 7.5x is well above its 'BBB' category peers, including
Essential Properties Realty Trust, Inc. (BBB/Stable), LXP
Industrial Trust (BBB/Stable), EPR Properties (BBB-/Stable) and
American Assets Trust, Inc. (BBB/Stable). GNL's credit metrics were
negatively affected after merging with a more highly levered RTL.
However, improvement is expected on this front as the company
executes its disposition plan and uses the sale proceeds to reduce
leverage.
GNL's access to capital is also less established and has been
relatively more challenged compared to peers, and its equity trades
at a significant discount relative to consensus net asset value
(NAV) estimates.
Fitch rates the IDRs of the parent REIT and subsidiary operating
partnership on a consolidated basis, using the weak parent/strong
subsidiary approach and open access and control factors, based on
the entities operating as a single enterprise with strong legal and
operational ties.
Fitch applies 50% equity credit to the perpetual preferred
securities given the cumulative nature of coupon deferral. The
instruments are subordinated to debt, lack material covenants and
the terms of the change of control do not negate the equity credit
judgment. Certain metrics calculate leverage including preferred
stock. Fitch only rates GNL's existing series A and B preferred
stock and does not rate series D and E. (In connection with the
merger, each issued and outstanding share of RTL series A and C
preferred stock was automatically converted into one share of newly
created series D and E.)
Key Assumptions
The assumptions below assume the RCG transaction closes as
expected:
- Occupancy increases to approximately 98%, which is a function of
the sale of the lower-margin multi-tenant retail portfolio (largely
inherited from the RTL merger);
- Assumes average annual rental increases in the mid-1% range and
renewal leasing spreads in the mid-single digits;
- Dispositions total over $2 billion in 2025, including both the
RCG transaction and several noncore properties in its single-tenant
portfolio, the proceeds of which are primarily used to pay down the
revolver;
- No acquisitions are completed through the forecast period;
- Leverage declines to the mid-6x to low 7x range.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Lack of material improvements in EBITDA and reduction of debt
such that Fitch expects GNL's REIT leverage above 8.0x on a
sustained basis;
- Lack of meaningful improvements in governance, such that Fitch
expects capital access to remain constrained for the entity at the
'BB+' rating level.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Post-RCG transaction close, GNL's portfolio quality and capital
structure are in line with the investment-grade rating category;
- Evidence of material improvements in EBITDA and reduction of debt
such that Fitch expects REIT leverage below 7.0x on a sustained
basis;
- Meaningful improvements in governance, such that Fitch expects
capital access to be commensurate with entities rated 'BB+' or
higher;
- UA/UD sustaining above 2.0x.
Liquidity and Debt Structure
As of Dec. 31, 2024, GNL had cash and cash equivalents of $159.7
million and $332.5 million available for future borrowings under
the revolver. The availability of borrowings under the revolver
continues to be based on the value of a pool of eligible
unencumbered real estate assets owned by the company or its
subsidiaries and in compliance with various ratios related to those
assets.
In connection with the merger, GNL amended the credit agreement and
exercised the existing accordion feature on the revolver to
increase commitments by $500 million, to $1.95 billion. There is
$1.39 billion in outstanding borrowings that matures in October
2026, though there are two six-month extension options.
In addition, GNL has $500 million of 3.75% senior notes due in 2027
and $500 million of 4.50% senior notes maturing in 2028. Gross
mortgage notes payable total $2.32 billion, of which $464.5 million
is due in 2025 and $105.9 million in 2026.
GNL's estimated liquidity coverage ratio is weak, primarily due to
the high revolver amount that is due in 2027. However, Fitch
expects its liquidity position and financial flexibility to improve
as dispositions are completed. GNL's UA/UD ratio is also below
2.0x, the threshold for investment-grade U.S. equity REITs.
Issuer Profile
Global Net Lease, Inc. is a REIT that focuses on acquiring and
managing a global portfolio of income producing net lease assets
across the U.S. and Western and Northern Europe.
Summary of Financial Adjustments
Fitch did not make any material non-standard financial
adjustments.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Global Net Lease, Inc. LT IDR BB+ Rating Watch On BB+
senior unsecured LT BB+ Rating Watch On RR4 BB+
preferred LT BB- Rating Watch On RR6 BB-
Global Net Lease
Operating Partnership,
L.P. LT IDR BB+ Rating Watch On BB+
senior unsecured LT BB+ Rating Watch On RR4 BB+
GLORY PROJECT: Unsecureds Will Get 10% via Quarterly Payments
-------------------------------------------------------------
Glory Project LLC and Private Animal Care Veterinary Corporation
filed with the U.S. Bankruptcy Court for the Central District of
California a Disclosure Statement describing Plan of Reorganization
dated February 28, 2025.
Dr. Krystal J. Burns is the sole shareholder of PAC, which was
incorporated in March 2020. Dr. Burns is a veterinarian and
operates her practice through PAC.
Dr. Burns is the sole member and manager of Glory Project. Glory
Project was organized in August 2022 to purchase the Property.
Glory purchased the Property for $2,725,000. Glory obtained two
loans to purchase the Property. Although Glory holds title to the
Property, PAC and Dr. Burns are each also liable for the loans used
to purchase the Property as either borrowers or guarantors.
The Debtors and Dr. Burns fell behind on the mortgage payments to
BMO and the Stomel Trust, and BMO initiated foreclosure
proceedings. A foreclosure sale was scheduled for September 19,
2024. The Debtors filed their emergency petitions on September 18,
2024, to stop the foreclosure.
While the Debtors' chapter 11 cases were pending, the Debtors
determined that it was in the best interests of both Estates to
sell the Property. Accordingly, Glory Project sought and obtained
Bankruptcy Court approval to employ the Broker to assist it with
the marketing and sale of the Property. The Broker listed the
Property for sale on or around November 8, 2024, with a listing
price of $3,899,000.00.
On December 22, 2024, after being informed by exposure to the
market, the Broker, with the Glory Project's approval, reduced the
list price of the Property to $3,200,000. After the reduction in
the list price, the Broker received numerous inquiries on the
Property and conducted several showings. However, as of the filing
of this Disclosure Statement, the Broker has not received any
offers on the Property.
Class 4 consists of General Unsecured Claims. Estimated at
approximately $213,000. Holders of Allowed General Unsecured Claims
shall receive their pro rata share of at least $21,300 over the
life of the Plan, and will receive quarterly payments in years four
and five of the Plan. This Class shall receive a quarterly payment
of $2,662.50. This Class will receive a distribution of 10% of
their allowed claims. This Class is impaired.
If the Debtors successfully obtain refinancing, a sale, or an
equity investment, then such funds shall be used to pay the Class 1
and Class 2 Allowed Secured Claims. The balance of all Allowed
Claims will be paid from the Debtors' ongoing business operations
as set forth in the Plan Projections, which are to be filed.
A full-text copy of the Disclosure Statement dated February 28,
2025 is available at https://urlcurt.com/u?l=hVv3KY from
PacerMonitor.com at no charge.
Attorneys for the Debtors:
Susan K. Seflin, Esq.
Steven T. Gubner, Esq.
Jessica S. Wellington, Esq.
BG Law LLP
21650 Oxnard Street, Suite 500,
Woodland Hills, CA 91367
Tel: (818) 827-9000
Fax: (818) 827-9099
About Glory Project
Glory Project, LLC, is a Tarzana, Calif.-based company engaged in
renting and leasing real estate properties.
Glory Project filed Chapter 11 petition (Bankr. C.D. Cal. Case No.
24-11563) on Sept. 18, 2024, with $1 million to $10 million in both
assets and liabilities.
Judge Victoria S. Kaufman oversees the case.
Susan K. Seflin, Esq., at BG Law, LLP is the Debtor's legal
counsel.
GPS HOSPITALITY: Moody's Cuts CFR to Caa2 & Alters Outlook to Neg.
------------------------------------------------------------------
Moody's Ratings downgraded GPS Hospitality Holding Company LLC's
("GPS") ratings, including its corporate family rating to Caa2 from
Caa1, probability of default rating to Caa2-PD from Caa1-PD, and
senior secured notes rating due 2028 to Caa2 from Caa1. The outlook
was changed to negative from stable.
The downgrades and negative outlook reflect GPS's weakened
operating performance, liquidity and credit metrics that have led
to an increased probability of default, including the potential for
a distressed exchange. The company's revenue and earnings declined
in the first nine months ended September 2024, driven by negative
same-store sales as consumers, particularly at lower income levels,
remain pressured by the ongoing high cost of living, as well as
ongoing commodity and labor inflation. Liquidity is weak,
reflecting modest balance sheet cash, negative free cash flow due
to weak earnings and high interest and capital spending
requirements, and tight financial covenant cushion. Moody's
adjusted debt/EBITDA increased to over 10x and EBIT/interest fell
to zero as of September 2024, which is unsustainable.
RATINGS RATIONALE
GPS' Caa2 rating is constrained by governance considerations,
particularly its aggressive financial strategies that, when
combined with weak earnings and negative same-store sales, have led
to unsustainably high financial leverage and weak interest
coverage. As part of a 2021 refinancing, the company increased debt
to fund a repurchase of approximately $105 million of preferred
equity. Performance subsequently deteriorated due to high commodity
and labor inflation and an increasingly difficult consumer spending
environment. As a consequence, credit metrics have remained
stubbornly weak. Also considered are GPS' geographic concentration
in Georgia, Louisiana and Michigan resulting in its operating
performance being driven in large part by economic and
environmental conditions in these three states. GPS benefits from
its position as one of the Burger King system's largest independent
franchisees in terms of units, as well as ownership of Popeyes
restaurants and well balanced day-part.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could result in a downgrade include an inability to
strengthen credit metrics from current levels, a deterioration in
liquidity for any reason, any increase in the probability of
default or the potential for lower recovery in default.
Ratings could be upgraded over time if GPS demonstrates steady
revenue and profit growth, and improved liquidity through a return
to positive free cash flow, more covenant cushion and an extended
debt maturity profile. Specific metrics include Moody's-adjusted
debt/EBITDA falling below 7x and EBIT/interest expense improving to
over 1.0x.
Headquartered in Atlanta, Georgia, GPS Hospitality Holding Company
LLC owns and operates 371 Burger King and 18 Popeyes restaurants
across 13 states, with latest twelve month revenue exceeding $650
million as of September 2024. GPS is privately held and is majority
owned by Tom Garrett, the company's founder and CEO.
The principal methodology used in these ratings was Restaurants
published in August 2021.
GREENLEAF 2 CPE: Hires Levene Neale Bender Yoo as Legal Counsel
---------------------------------------------------------------
Greenleaf 2 CPE, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Central District of California to hire
Levene, Neale, Bender, Yoo & Golubchik L.L.P. as general bankruptcy
counsel.
The firm's services include:
a. advising the Debtor with regard to the requirements of the
Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules and the Office
of the United States Trustee as they pertain to the Debtor and
interacting with and cooperating with any committee appointed in
the Debtor's bankruptcy case;
b. advising the Debtor with regard to certain rights and
remedies of its bankruptcy estate and the rights, claims and
interests of creditors;
c. representing the Debtor in any proceeding or hearing in the
Bankruptcy Court involving its estate unless the Debtor is
represented in such proceeding or hearing by other special
counsel;
d. conducting examinations of witnesses, claimants or adverse
parties and representing the Debtor in any adversary proceeding
except to the extent that any such adversary proceeding is in an
area outside of LNBYG's expertise or which is beyond LNBYG's
staffing capabilities;
e. preparing and assisting the Debtor in the preparation of
reports, applications, pleadings and orders including, but not
limited to, applications to employ professionals, interim
statements and operating reports, initial filing requirements,
schedules and statement of financial affairs, lease pleadings, cash
collateral pleadings, financing pleadings, and pleadings with
respect to the Debtor's use, sale or lease of property outside the
ordinary course of business;
f. representing the Debtor with regard to obtaining use of
debtor in possession financing and/or cash collateral including,
but not limited to, negotiating and seeking Bankruptcy Court
approval of any debtor in possession financing and/or cash
collateral pleading or stipulation and preparing any pleadings
relating to obtaining use of debtor in possession financing and/or
cash collateral;
g. assisting the Debtor in any asset sale process;
h. assisting the Debtor in the negotiation, formulation,
preparation and confirmation of a plan of reorganization and the
preparation and approval of a disclosure statement in respect of
the plan; and
i. performing any other services which may be appropriate in
LNBYG's representation of the Debtor during its bankruptcy case.
The firm will be paid at these rates:
Attorneys $550 to $750 per hour
Paraprofessionals $300 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received an initial retainer in the amount of $10,000. In
addition, on Feb. 4, 2025, LNBYG received an additional $155, 214
to be added to the retainer, which was $50,000 plus Chapter 11
filing fee of $1,738 per Debtor.
David B. Golubchik, Esq., a partner at Levene, disclosed in a court
filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
David B. Golubchik, Esq.
Carmela T. Pagay, Esq.
Levene, Neale, Bender, Yoo & Golubchik, LLP
2818 La Cienega Avenue
Los Angeles, CA 90034
Tel: (310) 229-1234
Fax: (310) 229-1244
Email: dbg@lnbyg.com
ctp@lnbyg.com
About Greenleaf 2 CPE
Greenleaf 2 CPE, LLC filed Chapter 11 petition (Bankr. C.D. Calif.
Case No. 25-11187) on February 18, 2025, listing between $500,001
and $1 million in assets and between $1 million and $10 million in
liabilities. Jonathan Rollo, chief executive officer, signed the
petition.
David B. Golubchik, Esq. at Levene, Neale, Bender, Yoo & Golubchik
L.L.P. will serve as the Debtor's counsel.
GREYSTONE PROPERTY: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Greystone Property Development LLC
29 Poplar St.
Roslindale MA 02131
Business Description: Greystone Property is a real estate
development company based in Roslindale, MA,
specializing in property acquisitions,
renovations, and management.
Chapter 11 Petition Date: March 19, 2025
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 25-10547
Judge: Hon. Christopher J Panos
Debtor's Counsel: Martin J. Keogh, Esq.
12 Welch Ave #5
Stoughton, MA 02072
Tel: 781-344-9700
E-mail: Martin@martinklaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Thomas Reyes as partner/manager.
The Debtor failed to provide a list of its 20 largest unsecured
creditors in the petition.
A complete version of the petition can be accessed for free on
PacerMonitor at:
https://www.pacermonitor.com/view/AWORGPA/Greystone_Greystone_Property_Development__mabke-25-10547__0001.0.pdf?mcid=tGE4TAMA
HALL CONSTRUCTION: Seeks to Tap Scott W. Spradley as Legal Counsel
------------------------------------------------------------------
Hall Construction Co. Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ the Law Offices
of Scott W. Spradley, PA to handle its Chapter 11 case.
Scott Spradley, Esq., the primary attorney in this representation,
will be paid $300 per hour plus expenses.
The firm received an initial retainer of $6,728 from the Debtor.
Mr. Spradley disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Scott W. Spradley, Esq.
Law Offices of Scott W. Spradley, P.A.
301 South Central Avenue
P.O. Box 1
Flagler Beach, FL 32136
Telephone: (386) 693-4935
Facsimile: (386) 693-4937
Email: scott@flaglerbeachlaw.com
About Hall Construction Co.
Hall Construction Co. Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06165) on
November 13, 2024, with up to $50,000 in assets and up to $500,000
in liabilities.
Judge Tiffany P. Geyer presides over the case.
The Law Offices of Scott W. Spradley, P.A. serves as the Debtor's
counsel.
HALL LABS: Seeks to Hire Diaz & Larsen as Bankruptcy Counsel
------------------------------------------------------------
Hall Labs, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Utah to employ Diaz & Larsen as counsel.
The firm will provide the following services:
(a) advise the Debtor of its rights, powers, and duties;
(b) take all necessary action to protect and preserve the
estate of the Debtor;
(c) assist in preparing on behalf of the Debtor all necessary
legal papers;
(d) assist in presenting the Debtor's proposed plan of
reorganization and all related transactions and any related
revisions, amendments, etc.; and
(e) perform all other necessary legal services in connection
with this Chapter 11 case.
The firm's services will be based upon the amount of time required
at standard billing rates plus out-of-pocket expenses.
The firm received a retainer of $75,000 from the Debtor.
Andres Diaz, a manager at Diaz & Larsen, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Andres Diaz, Esq.
Diaz & Larsen
757 East South Temple, Suite 201
Salt Lake City, UT 84102
Telephone: (801) 596-1661
Facsimile: (801) 359-6803
Email: courtmail@adexpresslaw.com
About Hall Labs LLC
Hall Labs LLC focuses on developing and monetizing intellectual
property across various industries by bringing together scientists
and engineers to solve complex problems. After prototyping and
market validation, Hall Labs licenses its technologies to
newly-formed entities, which then commercialize and further develop
the innovations. The Company generates revenue through the sale of
technologies, patents, and company interests, while its portfolio
companies become self-sustaining and progress toward an exit.
Hall Labs LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Utah Case No. 25-21038) on March 5, 2025. In its
petition, the Debtor reports estimated assets between $100 million
and $500 million and estimated liabilities between $50 million and
$100 million.
Honorable Bankruptcy Judge Joel T. Marker handles the case.
Andres Diaz, Esq., at Diaz & Larsen serves as the Debtor's counsel.
HARLING INC: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Harling, Inc.
2600 S. 25th Avenue, Suite 210
Broadview, IL 60155
Business Description: Harling Inc., located in Broadview,
Illinois, specializes in masonry facade
repair, restoration, and building
waterproofing services for commercial,
industrial, and institutional buildings.
The Company offers services such as
tuckpointing, concrete restoration, brick
replacement, lintel repair, and parapet
repair. With a focus on high-quality
craftsmanship and customer satisfaction,
Harling Inc. successfully completes more
than 90 projects each year, prioritizing
safety and excellence in all their work.
Chapter 11 Petition Date: March 20, 2025
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 25-04324
Judge: Hon. Jacqueline P Cox
Debtor's Counsel: Joel Schechter, Esq.
LAW OFFICES OF JOEL A. SCHECHTER
53 West Jackson Blvd., Suite 1522
Chicago, IL 60604
Tel: (312) 332-0267
E-mail: joelschechter1953@gmail.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Patrick Brenner 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/5NYKJ2A/Harling_Inc__ilnbke-25-04324__0001.0.pdf?mcid=tGE4TAMA
HARRISBURG UNIVERSITY: S&P Lowers Revenue Bonds Rating to 'B-'
--------------------------------------------------------------
S&P Global Ratings lowered its long-term rating on the Dauphin
County General Authority, Pa.'s revenue bonds, issued for
Harrisburg University of Science and Technology (HU) to 'B-' from
'BB-'.
The outlook is negative.
The lowered rating reflects HU's material weakening of financial
resources along with weak financial performance.
The negative outlook reflects our view of the university's
extremely weak liquidity position, which puts the university at
risk of payment default should adverse conditions exist.
Additionally, the debt service coverage (DSC) covenant violation in
fiscal 2024 and absence of a waiver exposes the university to debt
acceleration risk.
S&P said, "We assessed HU's enterprise risk profile as adequate,
characterized by average retention, rebounding enrollment at the
graduate level, and a stable enterprising management team working
to identify new revenue sources and diversify the university's
enrollment risk due to its dependence on international students.
Immigration policy changes pose a significant risk to the nature of
the university's operations. We assessed HU's financial risk
profile as highly vulnerable, with weak operating performance
during the past two years and weak financial resources providing
little financial flexibility should adverse conditions occur.
Combined, we believe these credit factors lead to an anchor of
'b+'. In our opinion, the 'B-' rating better reflects the
university's exceptionally weak liquidity."
The rating reflects our assessment of HU's:
-- Weak financial resources, especially compared with its
operations and debt;
-- Weakened operating performance in recent years, with material
deficits in fiscal years 2023 and 2024;
-- Very high MADS burden;
-- Dependence on international students at 81% of total full-time
equivalent (FTE), albeit HU's international students are largely
transfer students from other U.S. institutions; and
-- High student dependence, with tuition, fees, and auxiliary
revenue constituting more than 89% adjusted operating revenues
until fiscal 2024.
HU is working with a consultant that has projected that fiscal 2025
will result in the debt service coverage covenant being met for
fiscal 2025-2027 as the university works to right-size operations.
However, the weak financial performance has pressured the
university's cash resources and the days' cash on hand covenant
will not be met until fiscal 2028.
Harrisburg University of Science and Technology opened its doors in
August 2005 with 113 students in its first class. HU was created to
address central Pennsylvania's need for increased educational
opportunities in science, technology, engineering, and math (STEM)
careers. In June 2009, the university was accredited by the Middle
States Commission on Higher Education (MSCHE). The university
currently offers 24 concentrations spread across seven
undergraduate degree programs, 18 concentrations spread across five
graduate degree programs, and three Ph.D. programs. The
university's primary location is in Harrisburg, with a small
presence in Philadelphia.
S&P said, "We analyzed the university's environmental, social, and
governance (ESG) credit factors pertaining to its market position,
management and governance, and financial performance. We believe HU
is affected by changing demographic and population trends due to a
smaller traditional college-age population in Pennsylvania, in
addition to its exposure to changes in immigration policies due to
a high proportion of international students. We view these factors
as a social risk. We view the university's environmental and
governance credit factors as neutral in our analysis.
"The negative outlook reflects our opinion of the acceleration risk
associated with the projected DSC covenant violation. While we
understand that management does not expect bondholders to
accelerate the debt, we recognize the risk associated with the
provision for immediate acceleration. Additionally, the negative
outlook also reflects the exceptionally weak liquidity position of
HU, which could result in a default in debt service payments should
HU's budgeted revenues soften, or expenses increase."
A downgrade is likely if bondholders accelerate repayment of debt
or if there is a payment default.
S&P could consider revising the outlook to stable if the university
receives a waiver for its covenant violation and financial
resources and operating results improve in the near term.
HERBALIFE LTD: S&P Upgrades ICR to 'B+' on Deleveraging
-------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
Herbalife Ltd. to 'B+' from 'B'. At the same time, S&P raised its
issue-level rating on the company's senior secured debt to 'BB-'
from 'B+' and its issue-level rating on its senior unsecured debt
to 'B+' from 'B'. S&P's '2' recovery rating on the senior secured
debt (70%-90%; rounded estimate: 70%) and '4' recovery rating on
the senior unsecured debt (30%-50%; rounded estimate: 35%) are
unchanged.
The stable outlook reflects our expectation Herbalife will reduce
its S&P Global Ratings-adjusted leverage to 3.6x by repaying its
$197 million notes due Sept. 1, 2025, with around $190 million of
free operating cash flow (FOCF).
S&P said, "The upgrade reflects our view that Herbalife will reduce
its S&P Global Ratings-adjusted leverage to the mid-3x area in 2025
through debt repayment. The company reduced its S&P Global
Ratings-adjusted leverage to 4.1x in 2024 on a $40 million increase
in its EBITDA and debt repayment throughout the year. Additionally,
Herbalife's $400 million revolving credit facility was undrawn as
of year-end 2024. The improvement in the company's EBITDA stemmed
primarily from its favorable pricing, lower inventory write-downs,
and favorable impact of foreign currency fluctuations. We believe
the volumes in Herbalife's key markets began to rebound in 2024,
given its global volume declines of only 4% (with North America
down 11% and Europe, the Middle East, and Africa [EMEA] down 7%),
which compares with the 9% drop it experienced in 2023 (North
America down 19% and EMEA down 10%). The company also increased its
volume in Latin America (LATAM) by 1% in 2024, which compares with
a 13% decline in 2023, while its Asia Pacific (APAC) volumes were
nearly flat.
"Furthermore, we believe Herbalife increased its distributor count
in 2024, with new distributors growing in all geographic segments
in the fourth quarter except China. This reflects programs put into
place in 2024 aimed at improving distributor productivity through
increased training and support like the Herbalife Premier League,
Diamond Development Mastermind, and DMO master classes and
leadership training sessions with Eric Worre.
"We expect Herbalife's S&P Global Ratings-adjusted leverage will be
maintained at about 4x in the first half of 2025. However, we
expect the company will reduce its leverage to 3.6x in the third
quarter of 2025 by repaying its $197 million of outstanding senior
unsecured notes due Sept. 1, 2025, using excess cash on hand, cash
generated during the year and revolver borrowings. We believe this
equates to about 3x leverage on a company-defined basis, which is
the company's publicly stated leverage target. Our forecast assumes
the company will maintain a minimum cash balance of $350 million as
it now has greater ability to access cash overseas after
transferring intellectual property to a European subsidiary in
2024. Additionally, we forecast cash available for debt repayment
of about $160 million in 2025 after our expectation of $25 million
of acquisition costs given the company's purchase of 100% of the
assets of Pro2col Health LLC and Pruvit Ventures, Inc. and a 51%
controlling ownership interest in Link BioSciences Inc., expected
to close in the second quarter of 2025. We understand there may be
additional conditional payments related to the acquisitions based
on future performance. We expect the majority of Herbalife's cash
flow is generated in the second half of the year and expect it will
have about $60 million drawn on its revolver at year-end.
"Unfavorable foreign-exchange rates, due to a stronger U.S. dollar,
will preclude greater EBITDA growth in 2025. We forecast the
company will expand its S&P Global Ratings-adjusted EBITDA by 2.5%
in 2025, which compares with its 7% improvement in 2024, because of
foreign-exchange headwinds. Due to a stronger dollar, we expect
Herbalife's net sales will decline 3.4% in 2025, which compares
with a 1.4% decline in 2024. On a constant-currency basis, we
assume the company increases its net sales by 2% on improving
volume trends and pricing. Additionally, we forecast Herbalife will
face only $30 million of other one-time operating costs (down from
over $100 million in 2024) since ongoing restructuring programs,
namely the Transformation Program and Restructuring Program, were
substantially completed in 2024. We believe the company's other
one-time costs will stem from its ongoing digital technology
investments and other minor initiatives to further improve its
operating efficiency.
"We expect Herbalife will continue to sequentially reduce its
volume declines and improve its distributor levels in 2025. This
predominantly reflects the continued improvements in the company's
North American and European markets due to its rising distributor
levels. In 2025, we project Herbalife's volumes will decline by
1.5%, which compares with a 4% drop in 2024, due to declines of 6%
in North America (compared with 11% in 2024) and of 2% in EMEA
(compared with 7% in 2024). We believe the company's new
distributors will be more productive than those that joined during
the Covid-19 pandemic because of the Premier League program, which
we believe helps distributors build sustainable businesses leading
to greater member and volume growth overtime. While we do not
forecast Herbalife will increase its sales in 2025 due to greater
foreign-exchange headwinds, our base-case forecast assumes flat
revenue in 2026 following four years of revenue declines. We
continue to expect the company will expand its sales in APAC in
2025, its largest market, as solid volumes and a rise in its
overall membership continue to partially offset its declining
volumes and distributor rolls in other key higher-margin markets,
like the U.S. and European markets.
"Despite the leverage improvement, we believe Herbalife's
multilevel marketer business model and participation in the highly
competitive weight management and nutritional products industry
remain key risks. The company's industry is characterized by low
barriers to entry and numerous competitive formats, including
similar weight loss products sold in brick-and-mortar stores by
large consumer products companies, other direct sellers, increased
e-commerce activity, diet pills, low-carb diets, self-help weight
management services, mobile applications, subscription services,
and services administered by doctors, nutritionists, and
dieticians. Wider adoption of GLP-1 drugs for weight loss could
also disrupt the broader weight management and nutrition industry.
However, over the near term, we expect these risks will remain
contained in the U.S. and European markets, which we estimate
account for less than 40% of Herbalife's total net revenue.
"We believe Herbalife has minimal tariff exposure. We believe the
company's tariff exposure is limited to potential retaliatory
tariffs on products imported into Mexico from the U.S. This is
because Herbalife's U.S. manufacturing facility serves the Mexican
market. However, we do not expect tariffs would lead to a material
decline in the company's EBITDA, or significantly affect our
leverage expectations, because Mexico accounts for only about 10%
of its total net sales. Additionally, Herbalife imports certain tea
extracts (raw materials) from China, although we believe tariffs on
these imports would not significantly affect its EBITDA.
"The stable outlook reflects our expectation Herbalife will improve
its S&P Global Ratings-adjusted leverage to 3.6x by repaying its
$197 million of outstanding notes due Sept. 1, 2025, with around
$190 million of FOCF."
S&P could lower its rating on Herbalife if it sustains S&P Global
Ratings-adjusted leverage of more than 4x. This could occur if:
-- Global macroeconomic, regulatory, and geopolitical conditions
weaken, leading to lower volumes and net revenue, higher raw
material and labor costs, and greater foreign-exchange headwinds;
-- The competition from weight-management-focused competitive
products escalates; or
-- Herbalife's inability to reenergize its distributor base,
particularly the number and productivity of new distributors,
reverses the recent sequential improvement in its distributor and
volume trends.
S&P could raise our rating on Herbalife if it sustains S&P Global
Ratings-adjusted leverage of comfortably below 4x while improving
its volumes and distributor numbers in its key markets. This could
occur if:
-- Solid sales growth returns driven by favorable macroeconomic
and geopolitical conditions; and
-- It effectively reenergizes its distributor base, particularly
the number and productivity of its distributors.
HILTS LOGGING: Seeks Chapter 11 Bankruptcy in New York
------------------------------------------------------
On March 16, 2025, Hilts Logging & Excavating LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of New York. According to court filing, the
Debtor reports $1,404,316 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Hilts Logging & Excavating LLC
Hilts Logging & Excavating LLC specializes in logging services,
including timber harvesting and land clearing, utilizing a range of
heavy machinery for forestry operations.
Hilts Logging & Excavating LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 25-60199) on
March 16, 2025. In its petition, the Debtor reports total assets of
$612,385 and total liabilities of $1,404,316.
Honorable Bankruptcy Judge Patrick G. Radel handles the case.
The Debtor is represented by:
Peter A. Orville, Esq.
ORVILLE & MCDONALD LAW, P.C.
30 Riverside Drive
Binghamton, NY 13905
Tel: 607-770-1007
Fax: 607-770-1110
HUB CITY: Loses Subchapter V Status After Wage Claims Ruling
------------------------------------------------------------
Emlyn Cameron of Law360 Bankruptcy Authority reports that a small
chain of home healthcare providers have lost their Subchapter V
status in bankruptcy after a Texas judge ruled that they
incorrectly excluded priority unsecured wage claims in their debt
calculations to qualify for a special small business Chapter 11
filing.
About Hub City Home Health, Inc.
Hub City Home Health, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 24-10191) on
November 9, 2024, with $500,001 to $1 million in assets and
liabilities.
Shelby A. Jordan, Esq., at Jordan & Ortiz, PC represents the Debtor
as legal counsel.
HUDSON'S BAY: Plans Full Liquidation Amid CCAA Filing
-----------------------------------------------------
Hudson's Bay Company ULC, the Canadian entity that comprises the
retailer Hudson's Bay and TheBay.com, announced on March 14, 2025,
it has filed documents with the Ontario Superior Court of Justice
indicating that, despite exhaustive efforts to secure sufficient
financing to pursue a restructuring transaction under the
Companies' Creditors Arrangement Act, it has only secured limited
debtor-in-possession financing that will require the full
liquidation of the entire business. A store-by-store liquidation
process will begin as soon as next week.
The Company remains hopeful that key stakeholders, particularly its
landlord partners, will engage to explore a viable alternative
restructuring path that could preserve jobs, tenancy in retail
locations, and a company with deep historic significance before it
is too late. This alternative would necessitate significant capital
and immediate and substantial cooperation from landlords and other
critical partners.
Hudson's Bay employs approximately 9,364 people. The closure of
Hudson's Bay would mark the loss of a key employer and retailer
while drastically altering the dynamics of malls nationally by
removing a major anchor and driver of customer traffic. The Company
is focused on securing the support needed to preserve as many jobs
as possible while maintaining its longstanding position in Canadian
culture and the economy.
"Our team has worked incredibly hard to identify a viable path
forward, and our resolve is strengthened by the overwhelming
support from customers and associates who have shared heartfelt
stories about Hudson's Bay and what our stores have meant to them,
their families, and their communities across the generations," said
Liz Rodbell, President and Chief Executive Officer of Hudson's Bay.
"These powerful experiences remind us why we must continue to
pursue every possible opportunity to secure the necessary support
from key landlords and other stakeholders to save The Bay."
Assuming receipt of a Court order on March 17 at the "comeback
motion," store liquidations will begin next week. During the
liquidation process, Hudson's Bay and its licensed Canadian Saks
Fifth Avenue and Saks Off 5th stores will remain open to serve
customers in stores and, for a limited time, online at TheBay.com.
The Company will share additional details regarding impacted
locations, closure timelines, and customer accommodations,
including final sales events. Once the liquidation sale begins, all
sales will be final.
Additional Information
Court filings as well as other information related to Hudson's Bay
Company's CCAA proceedings will be available on the Monitor's
website at www.alvarezandmarsal.com/HudsonsBay. Information
regarding the CCAA process may also be obtained by calling the
Monitor's hotline at (416) 847-5157 (toll free), or by email at
hudsonsbay@alvarezandmarsal.com. Hudson's Bay will continue to
provide updates regarding the CCAA proceedings as developments or
circumstances may warrant.
About Hudson's Bay Company ULC
Hudson's Bay Company ULC is a Canadian entity that includes the
retail company Hudson's Bay, comprising 80 stores and TheBay.com.
Through a licensing agreement, 3 Saks Fifth Avenue and 13 Saks OFF
5TH stores also operate in Canada under Hudson's Bay Company ULC.
IGT LOTTERY: S&P Rates EUR1BB Senior Secured Term Loan 'BB+'
------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '3'
recovery rating to IGT Lottery S.p.A. EUR1 billion senior secured
term loan due 2030 and placed the issue-level rating on CreditWatch
with positive implications. The '3' recovery rating indicates its
expectation for meaningful (50%-70%; rounded estimate: 65%)
recovery in the event of a payment default. IGT Lottery is a
subsidiary of global lottery operator and gaming technology
provider International Game Technology PLC (IGT).
IGT issued the term loan in two EUR500 million tranches. The
company intends to use the proceeds of tranche A for general
corporate purposes, including repayment of outstanding borrowings
under its revolving credit facilities ($497 million drawn across
its two revolver tranches as of Dec. 31, 2024). Under the terms of
the credit agreement, IGT may only use the proceeds from tranche B
to fund the upfront fees and expenses for the Italian Gioco del
Lotto license (Italian Lotto), provided that the license is awarded
to the company. S&P said, "The proposed issuance does not affect
our 'BB+' issuer credit rating because we view tranche A as largely
debt for debt, although it modestly improves IGT's maturity
profile. Furthermore, while tranche B modestly increases leverage,
the funds will only be borrowed in the event that IGT is awarded
the Italian lotto license, an outcome we view favorably for the
company's credit profile. Our rating also incorporates the
assumption that the company may periodically need to make large
upfront payments to extend lottery licenses or secure new ones,
including the Italian Lotto."
S&P said, "Our ratings on IGT remain on CreditWatch, where we
placed them with positive implications on Feb. 29, 2024. We believe
the expected $2 billion of debt repayment from the company's
planned sale of its gaming and digital business and leverage
reduction will offset its modestly reduced scale and product
diversity and potentially support an upgrade.
"We expect to address the CreditWatch placement once we expect the
proposed separation and sale of IGT's Gaming & Digital business
will receive regulatory and other necessary approvals prior to the
expected closing by the end of the third quarter of 2025. We will
assess IGT's business position, pro forma capital structure, and
long-term financial policy as more information becomes available.
While we would likely raise our rating on the company by at least
one notch following the transaction, we could raise our rating by
two notches if we expect IGT to sustain leverage below 3x,
incorporating periodic large, upfront payments, and capital
investments to extend lottery contracts or secure new ones,
dividends, share repurchases, and operating volatility. We would
also need to believe that management's financial policy is aligned
with sustaining S&P Global Ratings-adjusted leverage below 3x. If
the deal does not close, we will likely affirm our ratings on IGT
and remove them from CreditWatch."
Issue Ratings--Recovery Analysis
Key analytical factors
-- IGT's capital structure comprises $820 million and EUR1 billion
of total revolving commitments, a EUR1.5 billion term loan (EUR600
million outstanding following its January 2025 amortization
payment), IGT Lottery's new EUR1 billion term loan, several secured
notes tranches issued by parent IGT, and the EUR500 million IGT
Lottery Holdings secured notes. All of its debt issues have the
same guarantors and IGT also guarantees the IGT Lottery senior
secured term loan.
-- S&P assumes the EUR1.5 billion term loan is fully repaid at
maturity in 2027 through scheduled amortization payments and is
therefore not included in our hypothetical default scenario.
IGT's debt, including the new IGT Lottery term loan, is all secured
by ownership interest in certain of its subsidiaries, certain
intercompany loans over $10 million and certain accounts receivable
on a pari passu basis.
-- Because the guarantors and the collateral are the same, S&P
therefore assumes the recovery prospects for all of the debt in the
company's capital structure are aligned.
Simulated default assumptions
-- S&P's simulated default scenario contemplates a default in 2030
because of the loss of one or more major lottery contracts or a
significant decline in the installed base of the company's gaming
machines if the proposed separation and sale of IGT's Gaming &
Digital business does not close. This would likely stem from a
significant loss in market share or a severe and sustained economic
decline that leads to a substantial drop in gaming machine yield
and purchases of new machines.
-- S&P assumes the total revolving credit facility commitment is
85% drawn at default.
Simplified waterfall
-- Emergence EBITDA: $713 million
-- EBITDA multiple: 6.5x
-- Gross recovery value: $4.6 billion
-- Net recovery value (after 5% administrative expenses): $4.4
billion
-- Value available for secured debt: $4.4 billion
-- Secured debt: $6.5 billion
--Recovery expectation: 50%-70% (rounded estimate: 65%)
Note: All debt amounts include six months of prepetition interest.
INTEGRITY REAL: Seeks to Hire Southeast Tax Advisors as Accountant
------------------------------------------------------------------
Integrity Real Estate, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to employ Southeast Tax
Advisors, LLC as an accounting professional.
The firm will prepare and file the Debtors' state and federal tax
returns for the 2024 tax year and prepare any bookkeeping entries
as necessary in connection with the preparation of the income tax
returns.
The standard hourly billing rate for Max Pollack, CPA, the
principal accountant of the firm, is $320 per hour. The rates of
other accountants and junior staff members that may assist in this
matter are $320 to $100 per hour.
Mr. Pollack assured the court that his firm is a "disinterested
person" under the Bankruptcy Code.
The firm can be reached through:
Max Pollack, CPA
Southeast Tax Advisors, LLC
4643 S Ulster St Suite 1485
Denver, CO 80237
Phone: (303) 941-5205
Email: max@setacpa.com
About Integrity Real Estate
Integrity Real Estate, LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 24-16853) on
November 15, 2024, listing under $1 million in both assets and
liabilities.
Judge Thomas B. McNamara handles the case.
Allen Vellone Wolf Helfrich & Factor PC serves as the Debtor's
counsel.
IRWIN NATURALS: Seeks to Extend Plan Exclusivity to April 5
-----------------------------------------------------------
Irwin Naturals and affiliates asked the U.S. Bankruptcy Court for
the Central District of California to extend their exclusivity
period to file a plan of reorganization to April 5, 2025.
The Debtors consist of four debtors, one of which holds their
operating business (Irwin Nevada). The Debtors have over two
hundred creditors and over two hundred shareholders, most of whom
have not yet participated in these cases as the Debtors' original
plan proposed for all shareholders to essentially maintain their
existing equity. The Debtors submit that their cases are larger
than the normal cases filed in this district but that this factor
is likely neutral.
The Debtors assert that they intend on filing an amended plan and
disclosure statement shortly which will contain the terms
memorialized in the Sale/Plan Process Stipulation. Now that the
Debtors have retained Essex Capital to assist with their
refinancing efforts, they received a term sheet on February 26,
2025 for up to $20 million and now expect to receive additional
term sheets from various sub debt lenders (who were waiting on the
amount of the ABL term sheet).
The Debtors further assert that they expect to have refinancing
locked in within the next six to eight weeks which would allow them
to pay all allowed claims in full; however, they recognize that
their bankruptcy cases have been pending for six months which is
why they are committed to a fulsome sale process while
simultaneously pursuing exit financing. The Debtors will no longer
be seeking approval of a plan that does not pay all allowed claims
in full on or shortly after the effective date of the plan.
The Debtors submit that the progress they have made towards
obtaining exit financing, coupled with the strict deadlines agreed
to with the Committee in the Sale/Plan Process Stipulation evidence
the Debtors' good faith efforts to ensure an outcome where all
allowed claims are paid in full prior to equity retaining their
interests.
The Debtors claim that they have now received an exit financing
term sheet and expect to receive more shortly, which will hopefully
allow the Debtors sufficient funds to pay all allowed claims in
full through the plan process. However, if that does not happen,
the Debtors are actively proceeding with a sale process as set
forth in the Sale/Plan Process Stipulation, which will ensure that
all creditors are paid in full through a 363 sale or change in
control through a plan by no later than August 2025 (with such
hearing to be held no later than July 31, 2025).
The Debtors explain that they are not seeking an extension of
exclusivity in order to pressure the Debtors' reorganization
demands. The Debtors are seeking an extension of exclusivity in
order to allow time for the Debtors to run a fulsome sale process
and/or obtain exit financing. Additionally, the Debtors' plan would
pay all creditors in full. As such, the Debtors' creditors are not
harmed by a further extension of the exclusivity periods.
Especially in light of the Committee's consent to the extension.
Counsel to the Debtors:
David M. Poitras, Esq.
Susan K. Seflin, Esq.
Jessica S. Wellington, Esq.
BG LAW LLP
21650 Oxnard Street, Suite 500
Woodland Hills, CA 91367
Telephone: (818) 827-9000
Facsimile: (818) 827-9099
Email: dpoitras@bg.law
sseflin@bg.law
jwellington@bg.law
About Irwin Naturals
Irwin Naturals is a provider of business support services.
Irwin Naturals and affiliates, 5310 Holdings, LLC, DAI US HoldCo,
Inc. and Irwin Naturals, Inc., filed Chapter 11 petitions (Bankr.
C.D. Calif. Lead Case No. 24-11323) on Aug. 9, 2024. At the time
of the filing, Irwin Naturals reported $10 million to $50 million
in both assets and liabilities.
Judge Victoria S. Kaufman oversees the cases.
The Debtors tapped BG Law, LLP as bankruptcy counsel; Beach,
Freeman, Lim & Clelland, LLP as accountant; Province, LLC as
financial advisor; and Marula Capital Group, LLC as valuation
consultant. Omni Agent Solutions, Inc., is the Debtors'
administrative agent.
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Golden Goodrich, LLP.
ISLAND VIEW: Hearing on Bid to Use Cash Collateral Set for March 25
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California is
set to hold a hearing on March 25 to consider another extension of
Island View Ranch, LLC's authority to use cash collateral.
The court on March 13 issued an order temporarily allowing the
company to use cash collateral, which consists of rents from its
real property located at 3376 Foothill Road, Carpinteria, Calif.
Irwin and Yolanda Overbach, Trustees of the Overbach Family Trust
Dated March 30, 1989, Santa Barbara County Tax Collector, and
Evoqua Water Tech, LLC assert a lien on the collateral.
About Island View Ranch LLC
Island View Ranch LLC is the owner of approximately 9.13 acres of
agricultural zoned land, including raised-bed enclosed greenhouse
grow space, flower drying outbuildings, agricultural storage
outbuildings, occupied by agricultural and commercial tenants that
are paying rent to the Debtor. The Property is located at 3376
Foothill Road, Carpinteria, CA and valued at $6.42 million.
Island View Ranch LLC sought relief under Chapter 11 of the U.S
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11404) on December
11, 2024. In the petition filed by Robyn Whatley, as manager
member, the Debtor reports total assets of $6,434,132 and total
liabilities of $9,596,177.
The case is overseen by Honorable Bankruptcy Judge Ronald A.
Clifford III.
The Debtor is represented by:
John K Rounds
Rounds & Sutter, LLP
Tel: 805-650-7100
Email: jrounds@rslawllp.com
ITG COMMUNICATIONS: S&P Assigns 'B' ICR, Outlook Stable
-------------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to ITG
Communications LLC, an end-to-end provider of wireline construction
services in the U.S.
S&P said, "We also assigned our 'B' issue rating and a '3' recovery
rating to the proposed first-lien term loan. This indicates our
expectations for meaningful recovery (50%-70%; rounded estimate
60%) in the event of a payment default.
"The stable outlook reflects our expectation that ITG will maintain
credit metrics appropriate for the rating with S&P Global Ratings
adjusted debt to EBITDA at about 4x and positive free operating
cash flow (FOCF) supported by strong demand for communications
infrastructure updates in the U.S.
"Our rating reflects ITG's position as an end-to-end cable
fulfillment provider in the U.S. offset by customer concentration.
ITG and engineering and construction (E&C) peers, with cable and
telecom end market exposure, have benefitted from demand tailwinds
in the broadband industry. Specifically, the expansion of
fiber-to-the-home (FTTH) has been a key driver of capital
expenditure (capex) from cable and telecom customers. Over the last
few years capex from cable customers has increased to develop FTTH
services across the U.S. to meet the increasing data demand from
households and enterprises. We assume total penetration of fiber
passings in the U.S. are in the low- to mid-50% area which presents
ample opportunity for development over the next few years.
"Cable and telecom providers have consolidated their vendor base
over the last few years to streamline quality and operations. This
positions E&C companies at scale more favorably than smaller
regional vendors. Despite this we believe ITG and peers still
largely compete on price. Further, given the consolidation in the
cable and telecom industry we note companies usually have
meaningful customer concentration. ITG derived 63% of its 2024
revenue from its top two customers (Comcast, 35%; Charter, 28%).
This is across multiple geographies with separate business units at
the cable companies contracting for work (e.g., the decision of
where to outsource fulfillment is not all made as a singular
corporate decision, and instead subject to multiple approvals
across the organization). Given capex spend is largely affected by
the same industry conditions we consider customer concentration to
remain a pronounced risk in the event capex spend slows or a
different vendor emerges as the preferred fulfillment provider
within the industry.
"The stable outlook reflects our expectation for ITG Communications
LLC to benefit from solid demand over the next few years as the
FTTH rollout continues to progress in the U.S., and related demand
from customers in the cable industry remains robust. Pro forma for
the transaction we expect S&P Global Ratings-adjusted debt to
EBITDA of 4.1x in 2025.
"We could lower our ratings on ITG if its S&P Global
Ratings-adjusted debt to EBITDA increases above 5x, if its reported
FOCF approaches breakeven, or if we believed the financial sponsor
is no longer committed to maintaining credit metrics in line with
the rating." This could occur if:
-- ITG enters into a re-leveraging transaction;
-- Poor working capital management reduces cash flows; or
-- Competitors take market share away from ITG.
S&P could raise its ratings on ITG if it achieves and sustains S&P
Global Ratings-adjusted debt to EBITDA below 4x and S&P Global
Ratings-adjusted FOCF to debt above 10%, while reducing customer
concentration and we believe the financial sponsor is committed to
maintaining credit metrics in line with a higher rating. This could
occur if:
-- Customers outsource more capital projects;
-- ITG increases wallet share with customers that are a smaller
portion of its existing revenue base or it expands into new end
markets over time; or
-- Its financial sponsor commits to a leverage target and foregoes
aggressive debt-funded transactions.
S&P said, "Governance factors have a moderately negative influence
on our credit rating analysis of ITG. We view
financial-sponsor-owned companies with aggressive financial risk
profiles as demonstrating corporate decision-making that
prioritizes the controlling owners' interests, typically with
finite holding periods and a focus on maximizing shareholder
returns."
JOANN INC: Committee Seeks to Hire Kelley Drye as Lead Counsel
--------------------------------------------------------------
The official committee of unsecured creditors of JOANN Inc. and its
affiliates seeks approval from the U.S. Bankruptcy Court for the
District of Delaware to employ Kelley Drye & Warren LLP as its lead
counsel.
The firm will provide these services:
a. advise the Committee with respect to its rights, duties and
powers in these chapter 11 cases;
b. assist and advise the Committee in its consultations with
the Debtors and in connection with the administration of these
cases, the investigation into historic conduct and transactions
that may provide value for creditors, the sale process and any
potential plan processes, and the ultimate disposition of the
Debtors' estates;
c. assist the Committee in its investigation of the acts,
conduct, assets, liabilities, and financial condition of the
Debtors;
d. advise and represent the Committee in connection with
matters generally arising in these cases, including the Debtors'
motions to (i) obtain post petition financing and use cash
collateral, and (ii) sell substantially all of their assets
pursuant to an auction process;
e. appear before this Court, and any other federal or state
courts;
f. prepare, on behalf of the Committee, any pleadings,
including motions, memoranda, complaints, objections, and responses
to matters arising in these cases; and
g. perform such other legal services as may be required or are
otherwise deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set forth in
the Bankruptcy Code, Bankruptcy Rules, or other applicable law.
The firm will be paid at these rates:
Partners $855 to $1,635 per hour
Special Counsel $545 to $1,060 per hour
Associates $565 to $980 per hour
Paraprofessionals $350 to $450 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The following is provided in response to the request for additional
information set forth in Paragraph D.1 of the Appendix B
Guidelines.
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Answer: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Answer: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments the
12 months prepetition. If your billing rates and material financial
terms have changed post-petition, explain the difference and the
reasons for the difference.
Answer: Kelley Drye did not represent the Committee in the 12
months prepetition. Kelley Drye has represented other committees in
the 12 months prepetition in other bankruptcy cases.
Question: Has your client approved your prospective budget and
staffing plan and, if so, for what budget period.
Answer: Yes, for the period of January 30, 2025 through March
31, 2025.
Jason R. Adams, Esq. a partner at Kelley Drye & Warren LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
James S. Carr, Esq.
Jason R. Adams, Esq.
John Ramirez, Esq.
Philip A. Weintraub, Esq.
Connie Y. Choe, Esq.
KELLEY DRYE & WARREN LLP
3 World Trade Center
New York, NY 10007
Tel: (212) 808-7800
Email: jcarr@kelleydrye.com
jadams@kelleydrye.com
joramirez@kelleydrye.com
pweintraub@kelleydrye.com
cchoe@kelleydrye.com
About Joann Inc.
JOANN operates in the fabric and sewing industry with one of the
largest assortments of arts and crafts products. JOANN has
transformed itself into a fully-integrated, digitally-connected
omni-channel retailer.
JOANN reported a net loss of $200.6 million for the year ended Jan.
28, 2023.
On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 24-10418). JOANN listed
$2,257,700,000 in assets against $2,440,700,000 in liabilities as
of Oct. 28, 2023.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan
Lokey Capital, Inc. as investment banker; and Alvarez & Marsal
North America, LLC, as financial advisor. Kroll Restructuring
Administration, LLC is the noticing agent.
JOANN Inc., on April 30, 2024 successfully emerged from its
court-supervised financial restructuring process.
2nd Attempt
Joann Inc. sought voluntary Chapter 11 petition for the second time
under U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25 10068) on
Jan. 15, 2025.
Kirkland & Ellis is serving as legal counsel to JOANN, with
Centerview Partners LLC serving as financial advisor and Alvarez &
Marsal North America, LLC serving as restructuring advisor.
JOANN INC: Committee Seeks to Hire Pachulski Stang as Co-Counsel
----------------------------------------------------------------
The official committee of unsecured creditors of JOANN Inc. and its
affiliates seeks approval from the U.S. Bankruptcy Court for the
District of Delaware to employ Pachulski Stang Ziehl & Jones LLP as
its co-counsel.
The firm's services include:
a. assisting, advising, and representing the Committee in its
consultations with the Debtors regarding the administration of the
Chapter 11 Case;
b. assisting, advising, and representing the Committee with
respect to the Debtors' retention of professionals and advisors
with respect to the Debtors' business and the Chapter 11 Case;
c. assisting, advising, and representing the Committee in
analyzing the Debtors' assets and liabilities, investigating the
extent and validity of liens, and participating in and reviewing
any proposed asset sales, asset dispositions, financing
arrangements, and cash collateral stipulations or proceedings;
d. assisting, advising, and representing the Committee in any
manner relevant to reviewing and determining the Debtors' rights
and obligations under leases and other executory contracts;
e. assisting, advising, and representing the Committee in
investigating the acts, conduct, assets, liabilities, and financial
condition of the Debtors, the Debtors' operations, and the
desirability of the continuance of any portion of those operations,
and any other matters relevant to the Chapter 11 Case or to the
formulation of a plan;
f. assisting, advising, and representing the Committee in
connection with any sale of the Debtors' assets;
g. assisting, advising, and representing the Committee in its
participation in the negotiation, formulation, or objection to any
plan of liquidation or reorganization;
h. assisting, advising, and representing the Committee in
understanding its powers and duties under the Bankruptcy Code and
the Bankruptcy Rules and in performing other services as are in the
interests of those represented by the Committee;
i. assisting, advising, and representing the Committee in the
evaluation of claims and on any litigation matters, including
avoidance actions; and
j. providing such other services to the Committee as may be
necessary in the Chapter 11 Case.
The firm will be paid at these rates:
Partners $1,150 to $2,350 per hour
Of Counsel $1,050 to $1,850 per hour
Associates $725 to $1,225 per hour
Paraprofessionals $495 to $650 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The firm provided the following information in response to the
request for additional information set forth in Paragraph D.1 of
the Fee Guidelines.
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments or
discounts offered during the 12 months prepetition. If your billing
rates and material financial terms have changed post-petition,
explain the difference and the reasons for the difference.
Response: The firm did not represent the client during the
12-month period prepetition.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Response: No.
Bradford J. Sandler, Esq., a partner at Pachulski Stang Ziehl &
Jones LLC, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Bradford J. Sandler, Esq.
Pachulski Stang Ziehl & Jones LLC
780 3rd Ave., Suite 3400,
New York, NY 10017
Tel: (484) 275-5442
Email: bsandler@pszjlaw.com
About Joann Inc.
JOANN operates in the fabric and sewing industry with one of the
largest assortments of arts and crafts products. JOANN has
transformed itself into a fully-integrated, digitally-connected
omni-channel retailer.
JOANN reported a net loss of $200.6 million for the year ended Jan.
28, 2023.
On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 24-10418). JOANN listed
$2,257,700,000 in assets against $2,440,700,000 in liabilities as
of Oct. 28, 2023.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan
Lokey Capital, Inc. as investment banker; and Alvarez & Marsal
North America, LLC, as financial advisor. Kroll Restructuring
Administration, LLC is the noticing agent.
JOANN Inc., on April 30, 2024 successfully emerged from its
court-supervised financial restructuring process.
2nd Attempt
Joann Inc. sought voluntary Chapter 11 petition for the second time
under U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25 10068) on
Jan. 15, 2025.
Kirkland & Ellis is serving as legal counsel to JOANN, with
Centerview Partners LLC serving as financial advisor and Alvarez &
Marsal North America, LLC serving as restructuring advisor.
JOANN INC: Committee Taps Province LLC as Financial Advisor
-----------------------------------------------------------
The official committee of unsecured creditors of JOANN Inc. and its
affiliates seeks approval from the U.S. Bankruptcy Court for the
District of Delaware to employ Province, LLC as its financial
advisor.
The firm's services include:
a. becoming familiar with and analyzing the Debtors' DIP
budget, assets and liabilities, and overall financial condition;
b. reviewing financial and operational information furnished
by the Debtors;
c. monitoring the sale process, interfacing with the Debtors'
professionals, and advising the Committee regarding the process;
d. scrutinizing the economic terms of various agreements,
including, but not limited to, various professional retentions;
e. analyzing the Debtors' proposed business plans and
developing alternative scenarios, if necessary;
f. assessing the Debtors' various pleadings and proposed
treatment of unsecured creditor claims therefrom;
g. assisting the Committee's investigation of the acts,
conduct, assets, liabilities and financial condition of the Debtors
and their affiliates, including certain transactions preceding the
bankruptcy filing and the formation of the Debtors;
h. analyzing claims against the Debtors and non-Debtor
affiliates;
i. assisting and advising the Committee and counsel regarding
the identification and prosecution of estate claims, including in
connection with any issues regarding the filing of the Case and the
propriety of the filing;
j. assisting and advising the Committee in its review and
analysis of, and negotiations with the Debtors and non-Debtor
affiliates related to, intercompany transactions and claims;
k. preparing, or reviewing as applicable, avoidance action and
claim analyses;
l. assisting the Committee in reviewing the Debtors' financial
reports, including, but not limited to, statements of financial
affairs, schedules of assets and liabilities, DIP budgets, and
monthly operating reports;
m. advising the Committee on the current state of these
chapter 11 cases; n. preparing and updating waterfall analyses and
the components thereof for the Committee to analyze potential
claims recoveries under various scenarios;
o. advising the Committee in negotiations with the Debtors and
third parties as necessary;
p. if necessary, participating as a witness in hearings before
the Court with respect to matters upon which Province has provided
advice; and
q. other activities as are approved by the Committee, the
Committee's counsel, and as agreed to by Province.
Province's current standard hourly rates are:
Managing Directors and Partners $900 to $1,450
Vice Presidents, Directors,
and Senior Directors $700 to $1,050
Analysts, Associates,
and Senior Associates $350 to $825
Paraprofessional / Admin $270 to $450
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Sanjuro Kietlinski, a partner at Province, LLC, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Sanjuro Kietlinski
Province, LLC
2360 Corporate Circle, Suite 340
Henderson, NV 89074
Tel: (702) 685-5555
Email: pnavid@provincefirm.com
About Joann Inc.
JOANN operates in the fabric and sewing industry with one of the
largest assortments of arts and crafts products. JOANN has
transformed itself into a fully-integrated, digitally-connected
omni-channel retailer.
JOANN reported a net loss of $200.6 million for the year ended Jan.
28, 2023.
On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 24-10418). JOANN listed
$2,257,700,000 in assets against $2,440,700,000 in liabilities as
of Oct. 28, 2023.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan
Lokey Capital, Inc. as investment banker; and Alvarez & Marsal
North America, LLC, as financial advisor. Kroll Restructuring
Administration, LLC is the noticing agent.
JOANN Inc., on April 30, 2024 successfully emerged from its
court-supervised financial restructuring process.
2nd Attempt
Joann Inc. sought voluntary Chapter 11 petition for the second time
under U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25 10068) on
Jan. 15, 2025.
Kirkland & Ellis is serving as legal counsel to JOANN, with
Centerview Partners LLC serving as financial advisor and Alvarez &
Marsal North America, LLC serving as restructuring advisor.
JOANN INC: US Trustee Warns Potential Conflict in Hiring Deloitte
-----------------------------------------------------------------
James Nani of Bloomberg Law reports that the US Trustee has called
for the rejection of Joann Inc.'s bid to hire Deloitte Tax LLP,
citing a conflict of interest due to the fabric and crafts
retailer's nearly $3 million in payments to the “Big Four” firm
prior to filing for bankruptcy.
In an objection filed Wednesday, March 19, 2025, in the US District
Court for the District of Delaware, the watchdog unit argued that
Deloitte should be barred from representing Joann in tax matters.
Joann filed for Chapter 11 bankruptcy on January 15, 2025, marking
its second filing within a year.
About Joann Inc.
JOANN operates in the fabric and sewing industry with one of the
largest assortments of arts and crafts products. JOANN has
transformed itself into a fully-integrated, digitally-connected
omni-channel retailer.
JOANN reported a net loss of $200.6 million for the year ended Jan.
28, 2023.
On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 24-10418). JOANN listed
$2,257,700,000 in assets against $2,440,700,000 in liabilities as
of Oct. 28, 2023.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan
Lokey Capital, Inc. as investment banker; and Alvarez & Marsal
North America, LLC, as financial advisor. Kroll Restructuring
Administration, LLC is the noticing agent.
JOANN Inc., on April 30, 2024 successfully emerged from its
court-supervised financial restructuring process.
2nd Attempt
Joann Inc. sought voluntary Chapter 11 petition for the second time
under U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25 10068) on
Jan. 15, 2025.
Kirkland & Ellis is serving as legal counsel to JOANN, with
Centerview Partners LLC serving as financial advisor and Alvarez &
Marsal North America, LLC serving as restructuring advisor.
KB3 2275: Gets Interim OK to Use Cash Collateral
------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
issued an interim order authorizing KB3 2275 Century, LLC to use
cash collateral.
The cash collateral consists of rents generated by the company's
real property at 2275 Century Hill, Los Angeles, Calif. The
property generates a monthly rent of $10,200.
Preferred Bank asserts an interest in the cash collateral. The bank
is the first lienholder and is owed $895,925 by the company.
As protection, Preferred Bank and other creditors holding claims
against the company will be granted replacement liens with the same
validity, priority and amount as their pre-bankruptcy liens.
In addition, the bank is entitled to monthly payments at the
current variable non-default interest rate.
The next hearing is scheduled for April 8.
About KB3 2275 Century
KB3 2275 Century, LLC a Los Angeles-based real estate company
operating from Avalon Boulevard.
KB3 2275 Century filed Chapter 11 petition (Bankr. C.D. Calif. Case
No. 25-10237) on January 14, 2025, listing between $1 million and
$10 million in both assets and liabilities.
Judge Neil W. Bason handles the case.
The Debtor is represented by Onyinye N. Anyama, Esq., at Anyama Law
Firm, A Professional Corp.
KIB1 LLC: Seeks Chapter 11 Bankruptcy in Nevada
-----------------------------------------------
On March 16, 2025, KIB1 LLC filed Chapter 11 protection in the U.S.
Bankruptcy Court for the District of Nevada. 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 KIB1 LLC
KIB1 LLC and its debtor affiliates are an investment and real
estate holding firms headquartered in Las Vegas.
KIB1 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. ) on March 16, 2025. In its petition, the Debtor reports
estimated assets and liabilities between $10 million and $50
million each.
The Debtor is represented by:
Richard F. Holley, Esq.
SPENCER FANE LLP
300 South Fourth Street, Suite 1600
Las Vegas, NV 89101
Tel: (702) 408-3400
E-mail: rholley@spencerfane.com
KINETIK HOLDINGS: Fitch Assigns 'BB+' Rating on Sr. Unsecured Notes
-------------------------------------------------------------------
Fitch Ratings has assigned a rating of 'BB+' with a Recovery Rating
of 'RR4' to Kinetik Holdings LP's proposed offering of senior
unsecured notes. The notes will rank equally with the existing
senior unsecured notes. Proceeds from the offering will be used to
repay a portion of the borrowings under the revolving credit
facility.
Kinetik's ratings reflect its sizable EBITDA generation, majority
fee-based revenue stream and some contractual revenue-assurance
features that support steady cash flow. This is balanced by
volumetric risk arising from the company's gathering and processing
(G&P) operations. The Outlook is Stable.
Key Rating Drivers
Moderate and Improving Leverage: Kinetik is strongly positioned at
the 'BB+' rating level. By annualizing 2H24 EBITDA, following two
2Q24 corporate actions, the company posted leverage of 3.7x. This
level could justify a positive rating action if maintained. The
2H24 period showed some EBITDA volatility, with one quarter
affected by low Waha Hub pricing. Kinetik subsequently made some
market-placement policy changes to decrease its sensitivity to Waha
Hub pricing.
Fitch forecasts 2025 leverage for Kinetik of 4.3x. The company's
conservative stance on the Durango acquisition's integration speed
may be undercut by strong positive results, which could decrease
leverage. Fitch's calculation differs from management's leverage
policy calculation; management uses pro rata EBITDA for
unconsolidated joint ventures, while Fitch uses dividends, among
other calculation differences.
Commitment to Enhancing Credit Quality: Kinetik demonstrated its
commitment to achieving a stronger credit profile by using a mix of
debt and equity funding for the 2Q24 Durango Permian acquisition.
The company has targeted a policy leverage ratio of 3.5x or less.
Converting the company's policy leverage definition to Fitch's
leverage calculation translates to a policy of approximately 3.8x,
though certain cash flows may occasionally fluctuate.
Permian Basin: Kinetik has a broad footprint in the Permian
region's Delaware basin. The Delaware has been the faster growing
of the Permian basin's two sub-basins over the recent years on a
percentage basis. The Permian is the leading U.S. oil basin, and
over half of all oil-directed rigs working in the U.S. are located
there. Kinetik supplements its large G&P business with three
long-haul pipeline joint ventures (JVs) that handle all the
hydrocarbon types the company gathers for its E&P customers.
Strong Customer Portfolio: Kinetik has 90 customers. Four
unidentified customers appear in the company's concentration
disclosure in its 2024 10-K. Fitch expects the majority of gross
profit will be generated by investment grade rated counterparties.
Certain customers are partly or wholly covered under contractual
arrangements where there is a remittance relationship between
Kinetik and the E&P customer, thereby reducing payment risk.
Peer Analysis
The best comparable company for Kinetik is DT Midstream, Inc. (DTM;
BBB-/Stable). Both companies have volumetric risk. Each has a large
presence in the top producing regions for their main hydrocarbon,
giving some assurance that the volumetric risk at each company is
bounded. Taking titles to hydrocarbons and selling them at market
prices is a small part of their EBITDA.
Both companies have significant EBITDA from long-term contracts
with revenue-assurance features. DTM has a higher percent than
Kinetik. A small portion of its EBITDA comes from contracts where
it takes title to hydrocarbons and sells them at market prices. DTM
has an immaterial amount of profit from this type of commerce.
While 2024 leverage performance show a lack of meaningful
differentiation, the long-term historic run-rate for leverage at
each company shows DTM to be lower-leveraged.
The one-notch difference in the companies' ratings is due to a
combination of slightly lower business risk at DTM and slightly
higher historic leverage at Kinetik.
Key Assumptions
- Fitch macro assumptions, e.g. the Fitch price deck for oil and
natural gas, and the Global Economic Outlook regarding Kinetik's
unhedged portion of interest rates;
- EBITDA expected to ramp up over the forecast, with volumes
growing in the high single-digits yoy in 2024 from expansion
projects completed in 2023 and the Durango acquisition;
- 2025 capex in line with management's guidance for capital
spending.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage expected to be sustained above 5.0x;
- Meaningful increase in business risk;
- A cluster of large shippers on the joint venture pipelines
experiencing business shocks or radically changing financial policy
results in the cluster's credit quality falling to 'B'.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA leverage expected to be sustained below 4.0x;
- Meaningful improvement of the of existing business risk by
increasing the percentage of gross margin generated from
take-or-pay contracts and minimum volume commitments from current
percentages.
Liquidity and Debt Structure
As of Dec. 31, 2024, Kinetik had available liquidity of about $651
million, consisting of $3.6 million of cash, and $647.4 million of
availability on the $1.25 billion senior unsecured RCF, which had
$590 million of outstanding borrowings and $12.6 million of LOCs.
Additionally, the $150 million accounts receivables securitization
facility (A/R facility) had $9.8 million of available for
investment.
Maturities are manageable, with the nearest facility termination
being the $150 million A/R facility due in April 2025 followed by a
maturity of the $1 billion remaining balance of the term loan A at
December 2026.
Kinetik's credit agreements contain a financial covenant that
requires it to maintain a net leverage ratio below 5.00 to 1.00 at
the end of any fiscal quarter. Following certain acquisition
periods, this ratio is raised to 5.50 to 1.00. Kinetik LP was in
compliance for all covenants as of the quarter ended Dec. 31,
2024.
Issuer Profile
Kinetik is a gathering and processing focused midstream company
handling natural gas, NGLs, and crude oil with assets primarily
focused in the Delaware Basin in the Permian.
Summary of Financial Adjustments
Under Fitch's typical calculation of EBITDA, distributions from
investees accounted for under the equity method of accounting are
included in EBITDA. Equity earnings or EBITDA from these entities
are excluded.
Date of Relevant Committee
12 August 2024
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery
----------- ------ --------
Kinetik Holdings LP
senior unsecured LT BB+ New Rating RR4
KINETIK HOLDINGS: Moody's Rates New $250MM Add-on Notes 'Ba1'
-------------------------------------------------------------
Moody's Ratings has assigned a Ba1 rating to Kinetik Holdings LP's
(Kinetik) proposed $250 million add-on to its backed senior
unsecured notes due 2028. The Ba1 Corporate Family Rating, existing
Ba1 ratings on backed senior unsecured notes, and stable outlook
for Kinetik remain unchanged.
"Kinetik's add-on notes, for which use of proceeds includes
repayment of a portion of revolver borrowings, will enhance
liquidity," commented Jonathan Teitel, Moody's Ratings' Vice
President - Senior Analyst.
RATINGS RATIONALE
Kinetik's senior unsecured notes due 2028 and 2030 are rated Ba1,
consistent with the CFR, as all debt is unsecured. The company also
has a senior unsecured term loan due 2026 and a senior unsecured
revolver due 2027. These notes, the revolver, and the term loan are
guaranteed by Kinetik Holdings Inc., the parent company.
Kinetik's Ba1 CFR reflects its large, integrated midstream
platform, moderate leverage, conservative financial policies, and
solid operational and financial track record since its formation in
February 2022 via a business combination, providing economies of
scale. The company operates primarily in the Delaware Basin, a
highly economic oil-producing region in the US, though this
concentration exposes it to basin-specific risks such as
production, transportation constraints, and weather-related
disruptions. Kinetik's business includes significant gathering and
processing operations, as well as transportation and storage
assets. Most of its gross profit comes from fixed-fee contracts,
limiting direct commodity price exposure. While the company faces
volume risks, some cash flow is supported by take-or-pay contracts.
For the portion of gross profit linked to commodity prices, Kinetik
hedges a significant part of this exposure. Additionally, some
EBITDA comes from joint ventures that own pipelines connecting the
Permian Basin and Gulf Coast, a key market for the company's
volumes.
Kinetik's SGL-2 rating reflects the expectation of good liquidity.
As of December 31, 2024, Kinetik had $590 million outstanding on
its $1.25 billion revolver due June 2027, with $4 million in cash.
The revolver and term loan have a maximum net leverage ratio
covenant of 5x, increasing to 5.5x during certain acquisition
periods, and Moody's expects the company to maintain good headroom
for future compliance with this covenant. Additionally, Kinetik has
a $150 million accounts receivable securitization facility expiring
in April 2025, with $140 million outstanding and Moody's expects
the company to renew this facility.
The stable outlook reflects Moody's expectations that Kinetik will
maintain modest leverage, grow EBITDA, and sustain good
distribution coverage.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Factors that could lead to an upgrade include continued growth in
scale and strengthening of the business profile through reduced
volume risk and improvement of cash flow stability, maintenance of
debt/EBITDA below 3.5x, good distribution coverage and sustaining
EBITDA over $1 billion.
Factors that could lead to a downgrade include debt-funded
acquisitions, aggressive increases in shareholder returns,
weakening of business profile, such as increased volume or
commodity price risks, or debt/EBITDA above 4.5x.
Kinetik, based in Texas, is a wholly owned subsidiary of publicly
traded Kinetik Holdings Inc. Focused on the Delaware Basin, Kinetik
generates most of its EBITDA from natural gas gathering,
processing, and transportation services. Its largest shareholders
are Blackstone and I Squared Capital.
The principal methodology used in this rating was Midstream Energy
published in February 2022.
KINGSBOROUGH ATLAS: Taps Carle Mackie Power Ross as Special Counsel
-------------------------------------------------------------------
Kingsborough Atlas Tree Surgery, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of California to employ
Carle Mackie Power Ross LLP as special counsel.
The Debtor needs a special counsel to provide representation in
claim objections, Rule 2004 Examinations, and adversary proceedings
in this Chapter 11.
The firm's counsel and staff will be paid at these hourly rates:
Linda Balok, Attorney $545
Lawrence Brocchini, Attorney $545
Paul Castillo, Attorney $425
Trevor Codington, Attorney $545
Stephen-Bela Cooper, Attorney $425
Kimberly Corcoran, Attorney $545
John Dawson, Attorney $545
Justin Hein, Attorney $545
Sarah Hirschfeld-Sussman, Attorney $425
Simon Inman, Attorney $545
Phillip Kalsched, Attorney $545
Jessica King, Attorney $425
Jeremy Little, Attorney $545
John Mackie, Attorney $545
Kristin Mattiske-Nicholls, Attorney $475
Reid Paoletta, Attorney $475
Paul Pitingaro, Attorney $425
Samantha Pungprakearti, Attorney $425
Daniel Reidy, Attorney $545
Adam Rosenblum, Attorney $495
Philip Terry, Attorney $545
Jason Vargelis, Attorney $545
Arif Virji, Attorney $545
Mari Coppinger, Paralegal $225
Colleen Culver, Paralegal $180
Thomas Foley, Paralegal $170
Theresa Gates, Paralegal $225
Holly Green, Paralegal $180
Elena Reynoso, Paralegal $180
Natalie Rosenthal, Paralegal $250
Chessa Tachiki, Paralegal $200
Vinh Nguyen, IT Specialist $200
Tiffany Hardy, Closing Coordinator $150
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-petition retainer of $100,000 from the
Debtor.
Mr. Terry disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Philip J. Terry, Esq.
Carle Mackie Power Ross LLP
100 B St. Ste. 400
Santa Rosa, CA 95401
Telephone: (707) 526-4200
About Kingsborough Atlas Tree Surgery
Kingsborough Atlas Tree Surgery Inc. is a Santa Rosa,
California-based tree surgery company.
Kingsborough Atlas Tree Surgery Inc. sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-10088) on
February 20, 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 William J. Lafferty handles the case.
The Debtor tapped the Law Offices of Michael C. Fallon as
bankruptcy counsel and Carle Mackie Power Ross LLP as special
counsel.
KOGA LLC: Case Summary & 19 Unsecured Creditors
-----------------------------------------------
Debtor: Koga, LLC
17540 Million Dollar Road
Covington, LA 70435-7854
Business Description: Koga, LLC, operating as Koga Neurosurgery in
Covington, Louisiana, specializes in brain,
spine, and peripheral nerve surgery. Led by
Dr. Sebastian Koga, the clinic treats a wide
range of neurological conditions, including
brain aneurysms, tumors, seizures,
trigeminal neuralgia, Chiari malformation,
and spinal tumors. In addition to these,
Koga Neurosurgery offers advanced spinal
treatments such as artificial disc
replacement, scoliosis correction,
decompression, fusion, and spinal cord
stimulator implantation. The clinic also
provides non-invasive treatments like Gamma
Knife radiosurgery for brain tumors and
vascular
malformations. Koga Neurosurgery is
committed
to personalized care, offering consultations,
patient education, post-surgical support,
telemedicine services, and medicolegal
reviews.
Chapter 11 Petition Date: March 18, 2025
Court: United States Bankruptcy Court
Eastern District of Louisiana
Case No.: 25-10467
Judge: Hon. Meredith S Grabill
Debtor's Counsel: Phillip K. Wallace, Esq.
PHILLIP K. WALLCE, PLC
1795 West Causeway Approach, Suite 103
Mandeville, LA 70471
Tel: 985-624-2824
Fax: 985-624-2823
Email: pkwallace@aol.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sebastian F. Koga as registered agent/
managing member.
A complete copy of the petition, which contains a list of the
Debtor's 19 unsecured creditors, can be accessed for free on
PacerMonitor at:
https://www.pacermonitor.com/view/23R37TI/Koga_LLC__laebke-25-10467__0001.0.pdf?mcid=tGE4TAMA
KOPPERS HOLDINGS: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDR) of Koppers Holdings Inc. (Koppers) and its wholly owned
subsidiary, Koppers Inc., at 'BB-'. Fitch has also affirmed the
ratings of Koppers Inc.'s first lien senior secured term loan B and
first lien senior secured revolver at 'BB+' with a Recovery Rating
of 'RR1'. The Rating Outlook remains Stable.
Koppers' ratings reflect its leading competitive positions in
stable markets, healthy leverage profile, and high degree of
vertical integration. The rating is constrained by moderate
profitability compared to similarly rated peers and a narrow
product focus. The company's earnings are closely tied to the
infrastructure and repair and remodel markets. This exposure
results in lower earnings and FCF volatility than issuers with more
commoditized or cyclical products.
Key Rating Drivers
Resilient Operating Performance: Despite a challenging economic
landscape throughout 2024, Koppers demonstrated stable operating
results, reflecting its strong positions in markets with consistent
demand, such as infrastructure and residential repair & remodeling.
EBITDA margins increased modestly despite lower sales, fueled by
strategic price adjustments and cost savings initiatives. These
factors helped mitigate reduced demand and elevated raw material
costs in the Carbon Materials and Chemicals (CMC) segment.
While anticipated market share loss in Performance Chemicals (PC),
along with ongoing challenges in the CMC segment, could modestly
erode EBITDA margins, Fitch expects stable earnings in Railroad and
Utility Products and Services (RUPS) and modest rebounds in repair
and remodeling activities to support solid profitability. Fitch
forecasts Koppers' EBITDA margins will stabilize in the mid-12%
range.
Moderate but Stable Profitability: Koppers' EBITDA margins,
typically in the 11%-12% range, are modest compared to most
specialty chemicals peers, and various growth capex projects in
2021-2023 led to uneven FCF generation historically. Management
expects to decrease capex spending to approximately $65 million in
2025, after completing its growth initiatives. The reduction in
capex spending, along with benefits from recent investments aimed
at margin enhancement, should bolster FCF margins moving forward.
Sustainable Leverage: Koppers maintains a Fitch-calculated EBITDA
leverage ratio in the mid-3.0x range, reflecting a balance between
EBITDA growth and controlled increases in credit facility usage.
Reported net leverage is 3.4x, approaching the company's target.
Fitch forecasts that leverage will remain within a manageable range
of 3.0x-3.5x over the medium term, notwithstanding slight EBITDA
declines in 2025.
Balanced Capital Deployment: Fitch expects Koppers to allocate FCF
to growth initiatives and shareholder returns while approaching its
net leverage target of 2x-3x. Fitch anticipates the company will
continue its measured share repurchases and regular dividend
payments, supported by solid projected operational cash flow. These
acquisitions are likely to be primarily funded through FCF
generation and moderate credit facility usage. Fitch believes the
company will pursue acquisitions while focusing on debt reduction
post-transaction to align with rating thresholds.
Vertically Integrated Market Leader: Koppers is one of the largest
providers of wood preservation technologies in North America, with
number one positions for class I railroad crossties and utility
poles in the Eastern U.S. The company is a key supplier of creosote
to the North American railroad industry. Koppers' competitive
positions are supported by its vertically integrated and
strategically located manufacturing footprint, which ensures supply
reliability to customers through direct rail access and RUPS's
ability to fully source creosote from its CMC business.
Narrow Product Portfolio: While Koppers' focus on wood preservation
technologies may limit earnings growth and diversification relative
to peers, but it also reduces earnings volatility. The RUPS
business is a key stabilizer for Koppers' earnings profile, with
about 75% of class I railroad sales under long-term contracts and
an adequate ability to pass through costs. The segment benefits
from consistent rail traffic, increased infrastructure investments,
and rising global energy demands. Demand for the PC segment is
mostly correlated with repair and remodeling activity, with the
segment supplying many of the world's largest lumber treating
companies.
Parent-Subsidiary Linkage Considerations: Under its
parent-subsidiary linkage criteria, Fitch has equalized the IDRs of
Koppers Holdings Inc. and its wholly owned issuing subsidiary,
Koppers Inc., at 'BB-'. The equalization reflects open legal
ring-fencing and open access and control between the stronger
subsidiary and Koppers Holdings Inc.
Peer Analysis
Koppers' credit profile is supported by leading market positions
and exposure to healthy end markets, similar to 'BB' rated peers
Ingevity Corporation (BB/Stable) and H.B. Fuller Company
(BB/Stable). Fitch forecasts Koppers' EBITDA margins will trend at
around 12% through the forecast period, which compares unfavorably
to Ingevity but similarly to H.B. Fuller. Fitch expect Koppers' FCF
margin to average around 4% annually over the medium term, which
compares unfavorably to Ingevity at around 9% but similarly to H.B.
Fuller at around 4%. Despite weaker profitability, Koppers operates
with a similar financial structure to these peers, with projected
EBITDA leverage of around 3.0x-3.5x through the forecast horizon,
compared with around 3.5x-4.0x for H.B. Fuller and 3.0x for
Ingevity.
When compared to 'B' category peers Advancion Holdings, LLC.
(Advancion; B-/Stable) and Vantage Specialty Chemicals, Inc., Inc.
(Vantage; B/Negative), Koppers demonstrates relatively greater
operational scale, and greater stability in FCF generation. This is
supported by the company's high exposure to the stable
infrastructure and repair and remodel markets. Koppers also
benefits from a more conservative financial structure, as EBITDA
leverage for Advancion and Vantage is expected to be around 9.0x
and 6.0x, respectively, in the near term.
Key Assumptions
- Revenues slightly decline in 2025 due to continued soft demand
and market share loss in PC, coupled with weakness within tar and
pitch markets affecting CMC, while RUPS performance is roughly
flat. Organic revenues steadily grow at around 2%-3% annually
thereafter, supported by demand recoveries in utility poles and PC
products;
- EBITDA margins hover around the mid-12% range through the
forecast, as persisting challenges within CMC and moderating
earnings for PC are partially offset by earnings resiliency within
RUPS;
- Capex around $65 million annually, with no major growth projects
planned;
- FCF is primarily applied to debt reduction in 2025;
- Excess FCF in 2026 and thereafter are applied toward measured
share repurchases and tuck-in acquisitions.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage sustained above 4.3x, potentially caused by an
inability to adequately pass through costs;
- Sustained weak FCF generation, potentially stemming from poor
working capital management or higher than anticipated capital
spending;
- More aggressive than expected financial policy, representing a
departure from historical norms.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Greater operational scale and realized benefits from capital
projects, evidenced by more robust cash flow generation;
- Continued EBITDA margin improvement towards the mid-teens on a
sustained basis, supported by the successful execution of ongoing
efficiency initiatives and product portfolio enhancement;
- EBITDA leverage durably below 3.3x.
Liquidity and Debt Structure
The company has approximately $44 million in cash and cash
equivalents and $344 million in availability under the $800 million
revolver at YE 2024. Fitch projects positive annual FCF generation
throughout the forecast horizon, which should further provide the
company with adequate liquidity. Koppers has no material debt
maturities through 2027.
Issuer Profile
Koppers Holdings Inc. (NYSE: KOP) is a leading integrated global
provider of treated wood products, wood preservation chemicals and
carbon compounds. The company operates three business segments:
Railroad and Utility Products and Services, Performance Chemicals
and Carbon Materials and Chemicals.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Koppers Holdings Inc. LT IDR BB- Affirmed BB-
Koppers Inc. LT IDR BB- Affirmed BB-
senior secured LT BB+ Affirmed RR1 BB+
LANDSEA HOMES: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Landsea Homes Corporation's ratings,
including its Long-Term Issuer Default Rating (IDR) at 'B' and
unsecured debt at 'B+', with a Recovery Rating of 'RR3'. The Rating
Outlook is Stable.
The 'B' IDR reflects the company's small scale, limited geographic
diversity, high leverage and adequate financial flexibility. The
company's leading positions within its local markets, balanced land
strategy and volatile cash flow generation are also factored into
the rating.
The Stable Outlook reflects Fitch's expectation that housing demand
will remain relatively stable in 2025, and Landsea will maintain
meaningful rating headroom relative to Fitch's negative
sensitivities for the 'B' IDR.
Key Rating Drivers
Small Scale and Limited Diversification: Fitch views Landsea's
small scale and geographic concentration as limiting factors for
the IDR. The company is a top 40 U.S. homebuilder and operates more
than 80 communities across nine markets in five states. Landsea has
balanced concentration in high growth markets such as Florida,
California, Texas, Colorado and Arizona. In 2024, the company
expanded its operations in high-growth markets like Austin,
Dallas/Ft. Worth, and Denver through acquisitions. Landsea
primarily targets entry-level buyers but also caters to first
move-up buyers.
The limited diversity leaves the company exposed to an outsized
impact during regional or buyer segment downturns. Landsea has good
market positions in some of its markets, and generally competes
with large public homebuilders in these markets.
High Leverage: In 2024, Landsea's leverage increased due to
acquisitions, with net debt to capitalization at 53.8% as of
December 31, excluding $50 million of cash deemed unavailable by
Fitch for working capital and non-controlling equity interest. This
metric is expected to remain slightly above 50% in 2025-2026.
EBITDA leverage was 5.7x in 2024, including partial acquisition
contributions, and is forecast to decline to 5x at YE 2025 and
below 5x by the YE 2026. The company maintains a meaningful cushion
relative to the 'B' IDR negative sensitivity threshold of net debt
to capitalization above 60%.
Financial Flexibility: Landsea has adequate liquidity with cash,
revolver availability and funds from operations to meet its working
capital requirements. The company has an active share repurchase
program and bought back $5 million of its stock in 2024 and $34
million in 2023. Fitch's rating case forecast assumes the company
will be opportunistic in its share repurchases and will proceed
with them if liquidity allows.
Land-Light Strategy: Fitch views Landsea's land strategy as lower
risk because it reduces carrying costs and should lessen impairment
charges during severe housing contractions. Its owned lot position
of 1.7x years is among the lowest in Fitch's coverage, while its
3.9 years of total lots is below the average. As of Dec. 31, 2024,
Landse controlled 10,944 lots, of which 44% is owned, with the
remaining 56% controlled through options. The company focuses on
investing in land inventory that can be efficiently developed
within a 24-to-36-month period and targets a land position of 25%
owned and 75% optioned.
Cash Flow: Fitch expects Landsea will generate flat to slightly
positive free cash flow during most periods of housing demand
growth. Landsea's IDR reflects Fitch's expectation that management
will pull back on land and development spending when housing demand
weakens. This could lead to modest to high cash flow generation,
which can be used to pay down debt or build cash on the balance
sheet during cyclical downturns. The rating could be pressured if
management elects to continue acquiring land or pursue aggressive
capital allocation initiatives during a housing downturn, resulting
in lower FCF.
Aggressive Growth Strategy: Landsea has grown meaningfully since
its inception in 2013, becoming a top 40 U.S. homebuilder through
both acquisitions and organic growth. Between 2021 and 2024, the
company spent about $700 million on acquisitions. Fitch expects
company's growth strategy will focus on increasing their market
position in existing markets and exploring expansion into other
markets through organic growth or acquisitions.
Housing Market Expected to Remain Constrained: Fitch anticipates
the housing market will remain constrained through 2025 due to low
affordability and a weak economic backdrop. High mortgage rates and
elevated home prices will challenge affordability. However,
homebuilders' product adjustments and mortgage rate buydowns will
make new homes more appealing. Landsea's affordable offerings cater
to homebuyer needs. Fitch expects Landsea's revenues to grow by
high-single digits organically, with higher home deliveries offset
by lower ASP due to mix.
Peer Analysis
Landsea is larger in terms of revenues compared to STL Holding
Company, LLC (dba DSLD Homes; B+/Stable) and Adams Homes, Inc.
(B+/Stable), but smaller than Dream Finders Homes, Inc. (DFH;
BB-/Positive).
All four issuers have meaningful exposure to entry-level homes, but
DSLD Homes and DFH have greater exposure to other price points and
buyer segments. Landsea has the same owned-lot position as Adams
but higher than DSLD Homes and DFH. Landsea also has lower EBITDA
margins and higher leverage than these peers.
Key Assumptions
- Total revenues grow 12% in 2025 and 8.5% in 2026;
- EBITDA margin of 7.5%-8.5% in 2025 and 8.0%-9.0% in 2026;
- Landsea generates FCF margin of 2.5%-3.5% in 2025 and flat to
slightly negative FCF in 2026;
- EBITDA leverage around 5.0x at the end of 2025 and 4.0x-5.0x in
2026;
- Net debt to capitalization slightly above 50% in 2025-2026;
- EBITDA interest coverage of 2.0x-2.5x in 2025 and 2026.
Recovery Analysis
Landsea's business profile could yield a distressed enterprise
value of approximately $670 million on the liquidation value of its
assets. The $670 million in resulting liquidation value modestly
exceeds Fitch's assessment of Landsea's $500 million valuation as a
going concern, given the high book value of the company's real
estate inventory.
Distress could result from a prolonged housing downturn, combined
with aggressive land and development spending. The going-concern
valuation is based on about $91 million EBITDA estimate, reflecting
Fitch's view of a sustainable, post-reorganization EBITDA level.
The going-concern EBITDA is 35% below the fiscal 2024 EBITDA of
$132 million. Fitch assumes Landsea could generate a 5.5x EBITDA
multiple in a going-concern sale. Fitch has assumed a 10%
administrative claim.
The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realized in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors. It includes a 50% advance rate on
inventory (excluding deposits and pre-acquisition costs) to account
for shrinkage as well as impairment charges in a housing downturn,
and a 50% advance rate on PP&E.
Fitch assumes 80% of $455 million unsecured revolving credit
facility could be drawn.
The allocation of the value in the liability waterfall results in a
recovery corresponding to an 'RR3' for the unsecured revolving
credit facility and unsecured notes.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Net debt to capitalization sustained above 60%;
- EBITDA interest coverage falls below 1.5x;
- Inventory to debt consistently below 1.0x;
- Deterioration in the company's liquidity profile, including
consistently negative CFO and limited availability under its
revolving credit facility;
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The company increases its size and further enhances its
geographic diversification and market leadership positions;
- Net debt to capitalization consistently below 50% and the company
maintains a healthy liquidity position;
- Fitch's expectation that EBITDA leverage will sustain below 4.5x
and there is improvement in EBITDA margins.
- (CFO-Capex)/debt sustained above 3.5%.
Liquidity and Debt Structure
Landsea has sufficient liquidity with $53 million of cash, $4
million of cash held in escrow and $199 million borrowed under its
$455 million revolving credit facility as of Dec 31, 2024. Landsea
amended its revolving credit facility in 2024, reducing the
commitment from $675 million to $455 million and extended the
maturity to April 2027.
Issuer Profile
Landsea Homes Corporation (NASDAQ: LSEA) is engaged in the
acquisition, development, and sale of homes and lots in Arizona,
California, Florida, Colorado, and Texas. The company offers
products across a variety of price points but their main focus is
on first-time homebuyer.
Summary of Financial Adjustments
Historical and projected EBITDA is adjusted to add back non-cash
stock-based compensation and interest expense included in cost of
sales and also excludes purchase price accounting for acquired
inventory. Fitch classifies $50 million of unrestricted cash as not
readily available for working capital purposes.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Landsea Homes Corporation LT IDR B Affirmed B
senior unsecured LT B+ Affirmed RR3 B+
LAS VEGAS 0ILPK: Case Summary & 11 Unsecured Creditors
------------------------------------------------------
Debtor: Las Vegas 0ILPK 280 L L C
PO Box 9105
Aurora, IL 60598
Business Description: The Debtor, a single-asset real estate
entity as defined in 11 U.S.C. Section
101(51B), is the fee simple owner of the
property located at 2720 E Quail Ave, which
is valued at $1.41 million.
Chapter 11 Petition Date: March 20, 2025
Court: United States Bankruptcy Court
District of Nevada
Case No.: 25-11510
Debtor's Counsel: David J. Winterton, Esq.
DAVID WINTERTON & ASSOCIATES, LTD
7881 W. Charleston Blvd.
Suite 220
Las Vegas, NV 89117
Tel: 702-363-0317
Fax: 702-363-1630
E-mail: autumn@davidwinterton.com
Total Assets: $1,405,000
Total Liabilities: $613,161
The petition was signed by Richard Costello as member/manager.
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/VL3WWRY/LAS_VEGAS_0ILPK_280_L_L_C__nvbke-25-11510__0001.0.pdf?mcid=tGE4TAMA
LENDINGTREE INC: S&P Upgrades ICR to 'B', Outlook Positive
----------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on LendingTree
Inc. to 'B' from 'B-'.
S&P said, "We also raised our issue-level rating on the company's
senior secured debt to 'B' from 'B-'. The recovery rating remains
'3'.
"The positive outlook reflects that we could raise our ratings if
LendingTree is able achieve leverage comfortably below 5x, with
FOCF to debt coverage approaching 10%, despite potential headwinds
from an uncertain macroeconomic environment over the next 12
months."
The 'B' rating reflects that LendingTree ended 2024 with leverage
below 6x and FOCF to debt coverage above 5%, surpassing both
upgrade thresholds at the 'B-' rating. LendingTree ended 2024 with
S&P Global Ratings-adjusted gross leverage of 5.6x and FOCF to debt
coverage of 9.4%. S&P said, "We expect the company will further
deleverage to about 4.5x by the end of 2025 due to upcoming
mandatory debt repayment and modest growth in EBITDA. LendingTree
has $115 million of convertible notes maturing in July 2025 that we
believe it can and will fully repay either before or at their
maturity. The company ended 2024 with cash on hand of $107 million
and has full availability under its $50 million delayed draw term
loan facility (which we expect it to fully draw upon by the end of
March). Additionally, we expect LendingTree will generate $20
million-$30 million of reported FOCF through the first six months
of 2025 that can also be used for debt reduction. In total, we
expect its S&P Global Ratings-adjusted debt to decline about $80
million in 2025 (given the delayed draw term loan incurrence minus
the convertible notes payoff and debt amortization) and believe
it's highly unlikely leverage would increase above 6x and FOCF to
debt coverage to below 5%."
The positive outlook reflects that LendingTree could further
deleverage to comfortably below 5x while approaching FOCF to debt
coverage of at least 10%, but its advertising revenue is highly
exposed to economic cyclicality, which could impede future
deleveraging. S&P expects its S&P Global Ratings-adjusted EBITDA to
grow about $5 million in 2025 to $104 million and for the company
to generate about $55 million of reported FOCF, primarily driven by
expected growth in its home equity and small business loan products
as well as 2%-4% growth in its insurance business. However, if
EBITDA declined just 10% from its baseline forecast, its leverage
would be at or above 5x.
LendingTree's performance is highly susceptible to economic
cyclicality, and visibility into 2025 performance remains limited.
S&P Global Ratings believes there is a high degree of
unpredictability around policy implementation by the U.S.
administration and possible response--specifically with regard to
tariffs--and the potential effects on economies, supply chains, and
credit conditions around the world. S&P said, "As a result, our
baseline forecasts carry a significant amount of uncertainty. We
note LendingTree's EBITDA has declined precipitously in the past
given macroeconomic challenges, such as when EBITDA fell to $78
million in 2022 and to $62 million in 2023 from $124 million in
2021. However, we believe this large of a drop is unlikely to occur
in the next 12 months given past declines were primarily tied to
large step-ups in interest rates and the rate of inflation, and the
company is now operating a more streamlined business following
restructuring and cost savings initiatives with a smaller EBITDA
base than several years ago."
The positive outlook reflects that S&P could raise its ratings if
LendingTree is able achieve leverage comfortably below 5x, with
FOCF to debt coverage approaching 10%, despite potential headwinds
from an uncertain macroeconomic environment over the next 12
months.
S&P could revise its outlook to stable if S&P expects LendingTree
to sustain leverage above 5x or FOCF to debt coverage well below
10%. This could occur if:
-- Macroeconomic conditions deteriorate, leading to declining user
traffic and/or advertising spending from LendingTree's customer
acquisition partners; or
-- Competition from competitors, including generative AI
platforms, increases, leading to declining user traffic to
LendingTree and subsequently revenue and EBITDA.
S&P could raise its ratings on LendingTree over the next 12 months
if:
-- It is able to sustain leverage comfortably below 5x; and
-- Its FOCF to debt coverage approaches 10%.
LOCAL EATERIES: Seeks Subchapter V Bankruptcy in Tennessee
----------------------------------------------------------
On March 17, 2025, Local Eateries Inc. filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Middle District of Tennesse.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 100 and 199 creditors. The
petition states funds will be available to unsecured creditors.
About Local Eateries Inc.
Local Eateries Inc., operating as Porter Road, is a Nashville-based
butcher shop, specializing in US pasture-raised meats such as beef,
pork, chicken, and other market products, all free from hormones
and antibiotics. The Company operates a retail shop and provides
nationwide delivery via its online platform, offering premium,
dry-aged meats to customers across the U.S.
Local Eateries Inc. sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Lead Case No.
25-01131) on March 17, 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 Charles M. Walker handles the case.
The Debtor is represented by:
R. Alex Payne, Esq.
DUNHAM HILDEBRAND PAYNE WALDRON, PLLC
9020 Overlook Blvd., Suite 316
Brentwood, TN 37027
Tel: 629-777-6529
Fax: 615-777-3765
Email: alex@dhnashville.com
LUCAS CONSTRUCTION: Seeks to Hire The Kelly Firm as Legal Counsel
-----------------------------------------------------------------
Lucas Construction Group, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of New Jersey to employ The Kelly
Firm, PC as legal counsel.
The firm will provide these services:
(a) advise the Debtor with respect to its rights and
obligations;
(b) appear in the Bankruptcy Court on behalf of the Debtor;
(c) assist the Debtor in formulating, negotiating and securing
confirmation of a plan of reorganization or liquidation;
(d) make determinations of the validity and extent of any
liens which may be asserted against the assets of the estate; and
(e) render any other professional services which may they may
be called upon to accomplish as attorneys.
The firm received an initial retainer of $30,000 from the Debtor.
Andrew Kelly, Esq., an attorney at The Kelly Firm, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Andrew J. Kelly, Esq.
The Kelly Firm, P.C.
101 Highway 71, Suite 200
Spring Lake, NJ 07762
Telephone: (732) 449-0525
Email: akelly@kbtlaw.com
About Lucas Construction Group
Lucas Construction Group Inc. is a construction company based in
Morganville, New Jersey, specializing in heavy highway and road
construction as well as site redevelopment projects for both public
and private sectors. With over 15 years of experience, the Company
has worked with various federal, state, and local agencies,
handling complex construction tasks.
Lucas Construction Group Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-12404) on March 7,
2025. In its petition, the Debtor reports total assets of
$5,181,262 and total liabilities of $16,950,049.
Andrew J. Kelly, Esq., at The Kelly Firm, PC serves as the Debtor's
counsel.
M6 ETX II: Fitch Hikes LongTerm IDR to 'B+', Outlook Stable
-----------------------------------------------------------
Fitch Ratings has upgraded M6 ETX Holdings II MidCo LLC's (M6 ETX)
Long-Term Issuer Default Rating (IDR) to 'B+' from 'B' and assigned
its proposed senior secured term loan a 'BB' rating with a Recovery
Rating of 'RR2'. The loan will be issued in connection with its
Clearfork Midstream LLC (Clearfork) acquisition. Proceeds will be
used to fund the acquisition, refinance the existing indebtedness
of M6 ETX and Clearfork, and for general corporate purposes. The
Rating Outlook is Stable.
The upgrade reflects M6 ETX's improved financial position following
the transaction and an increase in size and scale. The rating is
supported by M6 ETX's strong footprint in the Haynesville, and its
predominately fixed-fee business model. The company's small size,
geographic concentration, and high volumetric exposure are credit
risks.
Fitch has reviewed the preliminary terms of the proposed term loan.
The assigned ratings assume no material variations in the final
terms.
Key Rating Drivers
Improved Financial Profile: M6 ETX's acquisition of Clearfork
Midstream improves the company's leverage profile and financial
flexibility. The acquisition is predominantly equity-funded, with
M6 ETX assuming Clearfork's debt, which will be consolidated into a
new term loan as part of the transaction. This revised capital
structure is expected to position M6 ETX's pro forma leverage at
around 3.75x in 2025, based on Fitch's forecast, with volume growth
driving further improvement over time.
Fitch expects the incremental EBITDA from the Clearfork acquisition
to keep M6 ETX FCF positive throughout the forecast period. The
Clearfork assets are expected to have a strong FCF conversion rate
due to the modest capital investment required on the system going
forward. This enhanced FCF profile is projected to strengthen M6
ETX's liquidity position and support the company's interest
coverage ratio, which is projected to remain above 3x throughout
the forecast period.
Volumetric Risk Remains: Pro forma for this acquisition, M6 ETX
will face meaningful volumetric risk. Substantially all of
Clearfork's EBITDA comes from acreage dedication contracts, where
customers pay a fee based on the volume of gas transported through
its system. Clearfork's operations are primarily concentrated in
the Louisiana Core, which benefits from higher production rates and
more established infrastructure compared to other regions served by
M6 ETX's legacy business.
Although production activity in the Louisiana Core is generally
more consistent, volumes fluctuate with market conditions, leading
to only marginal differences in volumetric risk, according to
Fitch. Fitch expects about 92% of M6 ETX's EBITDA to be fee-based
on a pro forma basis, of which around 75 percentage points will be
tied to volume-exposed operations.
Larger Size and Scale: The Clearfork acquisition will expand M6
ETX's size and geographic footprint by extending its gathering
system into the Louisiana Core. The combined network provides
sufficient pipeline capacity to accommodate future volume growth
without significant capital investment. Fitch anticipates minimal
integration risks associated with the transaction due to the
proximity, connectivity, and strategic fit of two companies.
However, Fitch believes M6 ETX's small size and geographic
concentration expose it to outsized event risks, particularly given
its high volumetric exposure.
Some Stability from Ship-or-Pay Contracts: Fitch expects about 17%
of M6 ETX's EBITDA to come from ship-or-pay contracts over the
forecast period. These contracts enhance cash flow stability by
requiring shippers to pay a fixed fee to reserve capacity on its
transmission pipelines, regardless of usage. Most of the company's
key transportation contracts are with investment-grade customers
and have a weighted average term of about six years. These
commitments also mitigate the company's volumetric risk by
incentivizing shippers with gathering contracts to develop acreage
dedicated to M6 ETX.
Near-term Volume Headwinds: Although M6 ETX is well positioned to
benefit from growth in LNG demand, the Haynesville basin's
production is price sensitive, posing a risk that gathering volumes
remain subdued. Fitch expects Haynesville producers to approach new
production investments cautiously because of high development
costs, long lead times for new wells, and uncertain demand from
recently commissioned LNG projects. As a result, Fitch does not
anticipate a significant increase in M6 ETX's volumes unless
natural gas prices consistently exceed producers' breakeven costs.
Peer Analysis
Summit Midstream Corporation (Summit; B-/Positive) and M6 ETX are
similarly sized gathering and processing companies. Summit is more
geographically diverse than M6, with operations in multiple
producing regions across the U.S. This diversity is somewhat offset
by Summit's focus on mature, declining basins, which lack the
robust fundamentals of the Haynesville basin.
M6 ETX has a stronger cash flow profile than Summit. M6 ETX and
Summit derive a similar percentage of their EBITDA from fixed fee
contracts at 92% and 85%, respectively. However, M6 ETX faces lower
volumetric risk than Summit due to a higher proportion of EBITDA
from transportation contracts with ship-or-pay commitments. These
contracts provide greater cash flow stability and incentivize
certain producers with volume-exposed acreage dedication contracts
to produce sufficient volume to meet their transportation
commitments.
Both companies are expected to have strong financial profiles for
their rating category, with leverage below 4.0x and interest
coverage above 3.0x, based on Fitch's forecast. M6 ETX's stronger
contract coverage and comparable financial profile results in the
company's higher rating.
Key Assumptions
- Fitch's oil and gas price deck;
- Throughput volumes remain largely unchanged in 2025, before
increasing gradually from 2026 onwards in response to incremental
demand from LNG export facilities;
- Contracts that expire during the forecast period are either
renewed with current customers or recontracted with new customers
at rates consistent with current levels;
- A meaningful reduction in non-fee margins due to the variability
of commodity prices;
- Elevated growth capital spending in 2025 due to a lateral
project, treater expansion and various new and deferred system
upgrades and well connects;
- SOFR remaining at or around 4.50%;
- Excess FCF is distributed to the sponsors, provided some cash is
retained for working capital purposes.
Recovery Analysis
The recovery analysis assumes the enterprise value of M6 ETX would
be maximized in a going concern (GC) scenario versus a liquidation
scenario. Fitch contemplates a scenario in which a default is
caused by the insolvency of a key customer due to a very depressed
commodity price environment.
Fitch assumes a sustainable, post-reorganization GC EBITDA of $150
million, reflecting the less favourable contract renewal rate and
lower throughput volumes that would exist in this environment. This
GC EBITDA is higher than the $130 million assumed previously based
the company's increase size and scale following the Clearfork
acquisition.
Fitch estimates M6 ETX would receive a GC recovery multiple of
6.0x, consistent with past reorganizations multiples in the energy
sector. In Fitch's bankruptcy case study report "Energy, Power and
Commodities Bankruptcies Enterprise Value and Creditor Recoveries",
published in October 2024, the median enterprise valuation exit
multiplies for 51 energy cases was 5.3x, with a wide range of
multiples observed.
Fitch assumes M6 ETX's RCF would be fully drawn down at bankruptcy.
A 10% administrative claim is incorporated in the recovery
calculation. The recovery analysis results in a 'BB'/'RR2' rating
for the proposed term loan.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA interest coverage expected to be sustained below 2.5x;
- EBITDA leverage expected to be sustained above 5.5x;
- Any deterioration in liquidity beyond current expectations,
including but not limited to any significant need to draw on the
company's revolver;
- A significant increase in capex, targeted towards higher business
risk projects;
- An acquisition or acquisitions that meaningfully increase the
business risk of M6 ETX;
- One of the top customers approaching a distressed financial
condition, e.g., showing weak access to capital markets.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade is not expected in the near term given M6 ETX's size
and scale. However, a positive rating action could occur if M6
ETX's size increases significantly with EBITDA leverage expected to
be sustained below 4.5x;
- A significant increase in the proportion of EBITDA from revenue
assurance contracts, without a meaningful deterioration in the
weighted average credit quality of shippers.
Liquidity and Debt Structure
Pro forma for the acquisition, Fitch expects M6 ETX to have
liquidity of $93 million, consisting of $25 million in cash and
equivalents, and $68 million in borrowing capacity on its $75
million super priority RCF. The company's RCF and term loan are
expected to mature in 2030 and 2032, respectively, with the term
loan amortizing at 1% per year.
Both facilities contain financial covenants requiring the company
to maintain a debt service coverage ratio above 1.1x. The RCF also
limits the Super Senior Leverage Ratio to 1.25x. Fitch expects M6
ETX to be complaint with its financial covenants throughout the
forecast period.
Issuer Profile
M6 ETX is a midstream company providing gathering, processing and
treating services to natural gas producers in the Haynesville
basin, as well as long-haul transportation to the U.S. Gulf Coast
LNG, industrial, and utility demand markets.
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
M6 ETX Holdings II MidCo LLC has an ESG Relevance Score of '4' for
Group Structure due to its somewhat complex organization structure.
These considerations have an elevated scope for M6 ETX, given
inter-family/related party transactions with affiliate companies.
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
----------- ------ -------- -----
M6 ETX Holdings II
MidCo LLC LT IDR B+ Upgrade B
senior secured LT BB New Rating RR2
M6 ETX II: Moody's Puts 'B2' CFR Under Review for Upgrade
---------------------------------------------------------
Moody's Ratings assigned a B1 rating to M6 ETX Holdings II MidCo
LLC's (M6 ETX) proposed first lien backed senior secured term loan
B due 2032. At the same time, Moody's placed M6 ETX's existing
ratings on review for upgrade, including its B2 Corporate Family
Rating, B2-PD Probability of Default Rating and B2 senior secured
term loan rating. Previously, the rating outlook was positive.
The review follows M6 ETX's agreement to acquire Clearfork
Midstream Holdings LLC (Clearfork, unrated) from EnCap Flatrock
Midstream (unrated) in an all-equity transaction. Clearfork is a
midstream company owning and operating natural gas gathering and
processing assets in the Haynesville Shale of East Texas and
Northern Louisiana. EnCap Flatrock Midstream's ownership of M6 ETX
will increase to about 78% from 71.7% following the transaction,
which is set to close on April 1, 2025.
M6 ETX will use the proceeds from the term loan borrowing to
refinance around $732 million of outstanding debt under its
existing term loan due 2029, around $119 million of debt
outstanding at Clearfork, and for general corporate purposes.
Moody's will withdraw ratings on M6 ETX's existing term loan
following its extinguishment.
"The Clearfork acquisition will increase M6 ETX's scale and
significantly reduce its level of financial leverage," said Thomas
Le Guay, a Moody's Ratings Vice President. "If the acquisition is
completed in accordance with the company's plans, M6 ETX's CFR will
likely be upgraded by one notch, to B1."
RATINGS RATIONALE
The new term loan is rated B1, in line with the anticipated CFR
level after the conclusion of Moody's reviews. Both ratings will be
aligned because of the small size of the revolver's potential
priority claim. The new $75 million senior secured revolver matures
in 2030 and has a super priority claim to the company's assets over
the term loan.
The review for upgrade of the B2 CFR is based on the credit
enhancing nature of the acquisition. The acquisition will increase
M6 ETX's scale, earnings and free cash flow generation capacity,
while immediately reducing pro forma financial leverage to below
4.0x debt/EBITDA and interest coverage to above 3.0x
EBITDA/Interest expense. M6 ETX will remain exposed to a single
geographic area with less competitive production costs than other
basins.
Moody's reviews will focus on updating Moody's forward views on the
company's pro forma business profile and financial policies. The
review will conclude following the close of the acquisition. Based
on the information currently available, M6 ETX's CFR will likely be
upgraded by one notch to B1.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
M6 ETX is a private company operating midstream natural gas
gathering and processing (G&P) facilities and pipelines in East
Texas. The company has over 500,000 dedicated G&P acres, over 3,200
miles of pipeline and around 2 billion cubic feet per day (Bcf/d)
of transportation capacity. M6 ETX is owned by EnCap Flatrock
Midstream and other legacy sponsors.
The principal methodology used in these ratings was Midstream
Energy published in February 2022.
MACADAMIA BEAUTY: Hires Elliott Thomason & Gibson as Counsel
------------------------------------------------------------
Macadamia Beauty, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Texas to employ Elliott, Thomason &
Gibson, LLP as substitute counsel.
The firm will render these services:
a. serve as counsel of record for the Debtor in all legal
aspects of this Bankruptcy Case, including without limitation, the
prosecution of actions on behalf of the Debtor;
b. prepare pleadings in connection with the Bankruptcy Case;
and
c. appear before the Court to represent the interests of the
Debtor in connection with the Bankruptcy Case.
Elliott, Thomason & Gibson will be paid at these rates:
Vickie Driver $895 per hour
Cristina Stephenson $845 per hour
Associates and Counsel $425 to $650 per hour
Paraprofessionals $295 per hour
The firm received a retainer of $50,000.
It will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Christina Stephenson, a partner at Elliott, Thomason & Gibson, LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Christina W. Stephenson, Esq.
Elliott, Thomason & Gibson, LLP
511 N. Akard, Suite 202
Dallas, TX 75201
Telephone: (214) 390-2086
Facsimile: (214) 506-1129
Email: crissie@etglaw.com
About Macadamia Beauty, LLC
Macadamia Beauty LLC -- https://www.macadamiahair.com -- is an
oil-based hair repair company based in Plano, Texas. Its unique
oil-infused hair repair products effectively address the most
common hair dissatisfactions among women: breakage, frizz, damage,
and dryness.
Macadamia Beauty LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 24-41929) on
August 19, 2024. In the petition filed by Henry Stein, as CEO, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
The Debtor is represented by Frances A. Smith, Esq. at ROSS, SMITH
& BINFORD, PC.
MAINE CRAFT: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Maine Craft Distilling LLC
123 Washington Avenue
#4
Portland ME 04101
Case No.: 25-20062
Business Description: Maine Craft Distilling produces and sells
artisanal spirits like Blueshine Blueberry
Liquor, Ration Expedition Style Rum, Sprigge
Barrel Rested Gin, Black Cap Vodka, Whipple
Tree Apple Brandy, and Alchemy Dry Gin. The
Company offers its products online and at
its physical public house location, where it
also hosts public events featuring live
music.
Chapter 11 Petition Date: March 21, 2025
Court: United States Bankruptcy Court
District of Maine
Debtor's Counsel: Sam Anderson, Esq.
BERNSTEIN, SHUR, SAWYER & NELSON, P.A.
100 Middle Street, P.O. Box 9729
Portland, ME 04101
Tel: 207-774-1200
Email: sanderson@bernsteinshur.com
Total Assets as of March 17, 2025: $593,878
Total Liabilities as of March 17, 2025: $1,281,429
The petition was signed by Nathaniel L. Davidson 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/PRQ65GA/Maine_Craft_Distilling_LLC__mebke-25-20062__0001.0.pdf?mcid=tGE4TAMA
MARINA DEL RAY: Seeks Chapter 11 Bankruptcy in Texas
----------------------------------------------------
On March 17, 2025, Marina Del Rey LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Northern District of Texas.
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 Marina Del Rey LLC
Marina Del Rey LLC is a full-service marina on Lake Texoma,
offering boat storage, rentals, maintenance, and a variety of
amenities, including a restaurant, bar, and lodging. The marina
provides a large boat ramp and covered boat slips in multiple sizes
for a convenient and enjoyable experience on the lake.
Marina Del Rey LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-30909) on March 17,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Jud Stacey G. Jernigan handles the
case.
The Debtor is represented by:
Joseph Fredrick Postnikoff, Esq.
ROCHELLE MCCULLOUGH, LLP
300 Throckmorton Street, Suite 520
Fort Worth, TX 76102-2929
Tel: (817) 347-5261
Fax: (817) 347-5269
E-mail: JPostnikoff@romclaw.com
MEMPHIS CARPET: Seeks to Tap Toni Campbell Parker as Legal Counsel
------------------------------------------------------------------
Memphis Carpet Cleaning, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Tennessee to employ
Toni Campbell Parker, Esq., an attorney practicing in Memphis,
Tenn., to handle its Chapter 11 case.
The attorney will be billed at $400 per hour and paralegal will be
billed at $100 per hour.
The attorney received a retainer $10,000 from the Debtor.
Mr. Parker disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Toni Campbell Parker, Esq.
45 North Bb King Blvd., Ste. 201
Memphis, TN 38103
Telephone: (901) 483-1020
Email: Tparker002@att.net
About Memphis Carpet Cleaning
Memphis Carpet Cleaning LLC, doing business as Memphis Clean, is a
professional cleaning service provider based in Memphis, TN.
Memphis Carpet Cleaning LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No. 25-20401) on
January 24, 2025. In its petition, the Debtor reports estimated
assets between $100,000 and $500,000 and estimated liabilities
between $1 million and $10 million.
Honorable Bankruptcy Judge Denise E. Barnett handles the case.
The Debtor is represented by Toni Campbell Parker, Esq., at the Law
Offices of Toni Campbell Parker, in Memphis, Tenn.
MERCURY INVESTMENTS: Court OKs Deal to Use Cash Collateral
----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division approved a stipulation between Mercury
Investments, LLC and MOR Financial Services, Inc. on the use of
cash collateral.
The stipulation authorizes Mercury Investments to use cash
collateral to pay business expenses until April 22 or until the
dismissal or conversion of the company's bankruptcy case, whichever
is earlier.
Mercury Investments was ordered to make a monthly payment of
$10,000 to MOR Financial Services to protect its interest.
As additional protection, MOR Financial Services was granted a
replacement lien on Mercury Investments' post-petition rents to the
same extent and with the same validity and priority as its
pre--bankruptcy lien.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/owCZb from PacerMonitor.com.
About Mercury Investments
Mercury Investments, LLC, a Los Angeles-based company, sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D.
Calif. Case No. 24-17177) on September 4, 2024, with $1 million to
$10 million in both assets and liabilities. Ruth Ann Isaacs
Hamilton, managing member, signed the petition.
Judge Sheri Bluebond handles the case.
The Debtor is represented by:
Matthew D. Resnik, Esq.
Rhm Law, LLP
Tel: 818-285-0100
Email: matt@rhmfirm.com
META MATERIALS: Bankruptcy Auction Set for April 3 in California
----------------------------------------------------------------
CA Global Partners announced an exclusive Live Webcast Auction of
META Material Technologies Inc. on April 3, 2025, at 10 AM PDT
(GMT-7). This auction presents a unique opportunity to acquire
state-of-the-art functional materials and nanocomposites equipment
from a premier facility.
Inspection Details:
Date: April 2, 2025
Time: 10 AM -- 4 PM PDT (GMT-7)
Location: 5880 W. Las Positas Blvd, Suite 37, 51, and 52,
Pleasanton, CA 94588
This sale is being conducted by order of the U.S. Bankruptcy Court
for the District of Nevada, Case Number 3:24-bk-50792.
Featured Assets:
-- 2021 Intellivation R2R500-E Vacuum Web Coating System
-- Fully Contained EVAP Metalization System with Cryogenics 3600
and Budzhar Drum Recirculation Cooling System (Original Cost:
$2.5M)
-- 2021 C&D Systems P9000 SmartPro Metal Liftoff System with JULABO
Recirculator
-- 2021 C&D Systems P9000 Photoresist Coater/Developer Spin Coating
System with CS-5000 Industrial Chiller
-- 2021 Y.E.S Chamber, EcoCoat System with Plasma Source
-- 2021 Ferrotec/Temescal Deposition System, Model FC-2800/200mm
-- 2021 Coast Controls R2R Exposure and Bake Systems
-- 2021 Faustel R2R Chemical Development and Liftoff Systems
-- State-of-the-Art 20x40 Clean Room
-- Hitachi Scanning Electron Microscope, Model S-4500
-- Keyence VHX-770E Digital Microscope
-- 2021 Leybold Dryvac DV 200 PFPE with Leybold RUVAC WH700 PFPE
-- Numerous Lab Equipment, Optical Tables, Laser Systems, Test
Instruments, and More
-- Facilities Equipment: 2021 KAISHAN KRDS 60 HP Screw Air
Compressor, ZEKS Air Dryer, Air Holding Tanks, and More
-- Office Equipment & Additional Assets
"This auction presents a rare chance to acquire late model,
cutting-edge nanotechnology equipment at exceptional value," said
Peter Wyke, President of CA Global Partners. "Buyers from advanced
manufacturing, research, and technology sectors will find an
incredible selection of high-quality machinery and lab equipment
available for immediate use."
For more information about the auction, a full equipment catalog,
and registration details, please visit cagp.com or contact CA
Global Partners at 818 340-3134.
About CA Global Partners
CA Global Partners are industry leaders in asset disposition,
offering unparalleled expertise in industrial auctions,
liquidations, and valuations worldwide. With a proven track record
of maximizing value for clients, they specialize in high-tech
manufacturing, laboratory equipment, and industrial assets.
About Meta Materials
Headquartered in Dartmouth, Nova Scotia, Canada, Meta Materials
Inc. is an advanced materials and nanotechnology company. The
Company is developing materials that it believes can improve the
performance and efficiency of many current products as well as
allow new products to be developed that cannot otherwise be
developed without such materials. The Company has product concepts
currently in various stages of development with multiple potential
customers in diverse market verticals.
Vaughan, Canada-based KPMG LLP, the Company's auditor since 2020,
issued a "going concern" qualification in its report dated March
28, 2024, citing that the Company has suffered recurring losses and
negative cash flows from operations and requires additional
financing to fund its operations, which raises substantial doubt
about its ability to continue as a going concern.
Meta Materials incurred net losses of $398.2 million and $79.1
million for the years ended December 31, 2023 and 2022,
respectively. As of March 31, 2024, the Company had $46.4 million
in total assets and $28 million in total liabilities.
MIDSTATE BASEMENT: Gets Extension to Access Cash Collateral
-----------------------------------------------------------
Midstate Basement Authorities, Inc. received another extension from
the U.S. Bankruptcy Court for the Northern District of New York to
use cash collateral.
The ninth interim order authorized Midstate to use its secured
creditors' cash collateral to pay operating expenses set forth in
its budget.
First Chatham Bank and other secured creditors will have valid,
binding, enforceable, and perfected continuing rollover liens and
security interests in all collateral. In addition, the bank will
receive payment of $5,500 as protection.
The next hearing is set for March 27.
About Midstate Basement Authorities
Midstate Basement Authorities Inc., doing business as Midstate
Concrete Leveling, is a general contracting company that offers
foundation repair, waterproofing, concrete leveling and lifting,
and water control systems. It serves residential and commercial
clients.
Midstate Basement Authorities sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No.
24-30650) on July 29, 2024, with total assets of $811,118 and total
liabilities of $2,337,095. Eric Leach, president of Midstate
Basement Authorities, signed the petition.
Judge Wendy A. Kinsella oversees the case.
The Debtor is represented by:
Peter Alan Orville, Esq.
Orville & Mcdonald Law, PC
Tel: 607-770-1007
Email: peteropc@gmail.com
MIRACLE RESTAURANT: Gets OK to Use Cash Collateral Until April 16
-----------------------------------------------------------------
Miracle Restaurant Group, LLC received ninth interim approval from
the U.S. Bankruptcy Court for the Eastern District of Louisiana to
use cash collateral until April 16.
The company can use funds in its bank account and cash from
operations based on its projected budget, with a 15% flexibility
per line item.
Creditors with a security interest in cash collateral were granted
replacement liens on the company's assets, including inventory,
accounts receivable and employee retention tax credit claims, to
the same extent and with the same validity and priority as their
pre-bankruptcy liens.
Secured creditors were also granted a superpriority administrative
claim to protect against any loss in value of their collateral.
Meanwhile, First Franchise Capital Corporation, one of the secured
creditors, will receive a monthly payment of $14,062, as set forth
in the budget.
A final hearing on the motion is scheduled for April 16, with
objections due by April 9.
About Miracle Restaurant Group
Miracle Restaurant Group, LLC owns and operates a fast-food
restaurant in Covington, La.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. La. Case No. 24-11158) on June 20,
2024, with $1 million to $10 million in both assets and
liabilities. Dwayne Murray, Esq., at Murray & Murray, LLC, serves
as Subchapter V trustee.
Judge Meredith S. Grabill presides over the case.
The Debtor is represented by Douglas S. Draper, Esq., and Michael
E. Landis, Esq., at Heller, Draper & Horn, LLC.
First Franchise Capital Corp., as secured creditor, is represented
by:
Jeffrey M. Hendricks, Esq.
Bricker Graydon, LLP
312 Walnut Street, Suite 1800
Cincinnati, OH 45202
Telephone:(513) 629-2786
Facsimile: (513) 651-3836
Email: jhendricks@brickergraydon.com
MIS INTERMEDIATE: S&P Assigns 'B' ICR on Announced Combination
--------------------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to MIS
Intermediate LLC (d/b/a Mainline Information System) and its 'B'
issue-level rating and '3' recovery rating to its proposed $1.1
billion first-lien senior secured term loan B and $180 million
revolving credit facility (expected to be undrawn at close). The
'3' recovery rating indicates its expectation for meaningful
(50%-70%; rounded estimate: 50%) recovery in the event of a payment
default.
The stable outlook reflects S&P's expectation that the company will
successfully manage the integration of Converge Technology
Solutions over the next 12 months and steadily improve its debt
leverage and cash flow generation by leveraging its improved scale,
footprint, and relationships with original equipment manufacturers
(OEMs).
MIS Intermediate, an IT solutions provider (ITSP) focused on the
large IBM ecosystem and an existing portfolio company of H.I.G.
Capital, is proposing to issue a new seven-year $1.1 billion
first-lien term loan and put in place a new five-year $180 million
revolving credit facility as part of the funding plan for H.I.G.
Capital's acquisition of Converge Technology Solutions and
subsequent merger with the company.
The combination of Mainline and Converge will yield a combined
business with improved scale and a broader set of service
capabilities; though S&P continues to view it as a relatively
modest player in the broader ITSP market. S&P's assessment of the
company's business risk profile incorporates our expectation that
it will remain a modest-size provider in the ITSP space, which
features a large and rapidly expanding addressable market
(estimated at more than $150 billion) that is benefitting from
favorable secular demand trends, including digital transformation
and the ongoing shift to cloud-based platforms. That said, the
conditions in the ITSP market are highly competitive due to its low
barriers to entry and fragmented nature, with competitors ranging
from national and multi-regional firms to regional and local IT
infrastructure and service providers. Some of these competitors
have greater financial resources than Mainline and stronger
relationships with their clients, original equipment manufacturers
(OEMs), and distributors.
While favorable secular trends have supported ample opportunities
for organic revenue expansion, both companies have favored
acquisitions to quicky broaden their geographic footprint, gain
customers, and keep pace with rapidly evolving enterprise IT
demands. S&P anticipates the combined company will have a stronger
competitive footing to capitalize on secular demand trends because
it will offer a broader range of services spanning hardware,
software, professional services, and managed hosting. These
capabilities will likely support improved growth prospects for its
organic revenue and EBITDA, particularly in security, hybrid cloud,
data, and managed services. This is somewhat of a differentiator,
particularly relative to the other smaller players in the market,
because it enables middle-market clients to source a complete suite
of solutions from a single ITSP rather than working with multiple
OEMs. These offers will also likely enable Mainline to serve a
wider range of customers and handle more complex projects.
S&P said, "We view the transaction as highly synergistic but still
believe it entails some integration risk, given the size of both
companies. Mainline has indicated that it expects to generate $49
million of run-rate cost synergies from the transaction within two
years of closing. Considering that management expects to realize
most of these savings from consolidating its operations,
eliminating duplicative selling, general, and administrative (SG&A)
costs, and volume-based purchasing efficiencies, we believe these
targets are reasonable and likely achievable. Notwithstanding the
experience both companies have with acquiring and integrating their
previous acquisitions, we anticipate this transaction will entail
some integration risk."
The combined company's revenue base will retain good geographic and
customer diversity; however, it will continue to rely on certain
key vendors. Mainline and Converge have historically maintained
strong relationships with the leading OEMs. However, the combined
entity will continue to face some vendor concentration, with its
largest OEM partner accounting for about 18% of its gross profit
for the 12 months ended Sept. 30, 2024. Still, S&P believes the
company remains largely vendor-agnostic and expect its vendor
concentration to decline over time as it further diversifies and
expands its service offerings. Mainline and Converge also possess
good geographic diversity and own their customer relationships,
which span a highly diversified base of customers--predominantly in
the middle market--across verticals such as health care,
government, financial services, education, and professional
services. Rising proportions of contractual and recurring revenue
streams (now approximately 43%), including from software and
maintenance, also supports increased customer stickiness and
switching costs.
S&P said, "While the company's S&P Global ratings-adjusted debt
leverage will initially be high, we expect it to generate good free
operating cash flow (FOCF) and improve its credit metrics over the
next 12-24 months. Pro forma for the transaction, we expect
Mainline's S&P Global Ratings-adjusted leverage (includes debt
adjustments for preferred equity and channel financing debt) will
be high at about 6.4x in 2025 due to the necessary costs to achieve
its planned synergies. In 2026, we expect the company's leverage
will improve to about 5.5x, primarily due to increasing organic
EBITDA and the absence of the one-time costs associated with the
acquisition and synergy realization. We also expect the company
will generate good free operating cash flow of $60 million-$70
million in 2025 and $80 million-$90 million in 2026 due to its
working capital dynamics and low capital expenditure (capex)
needs.
"Mainline's acquisitive track record and financial-sponsor
ownership likely preclude any material deleveraging below 5x. Both
Converge and Mainline have collectively completed and integrated
over 40 acquisitions since 2018. We believe that ITSPs view
acquisitions as an attractive avenue for expansion because such
transactions generally increase their technological capabilities,
talent availability, and serviceable geographies. Despite these
benefits, acquisitions often entail taking on debt and come with
integration risks. At least initially, we expect the company will
prioritize integrating the Mainline and Converge businesses rather
than pursue acquisitions. That said, over time we would expect the
company to build capacity for acquisitions by increasing its EBITDA
and using its cash flow generation. We further assume that if the
company's priorities change and it becomes more acquisitive, it
would prudently allocate its capital such that its leverage remains
below 6.5x and its FOCF to debt remains between 5% and 6%.
"The stable outlook reflects our expectation that Mainline will
successfully integrate Converge Technology Solutions over the next
12 months and steadily improve its debt leverage and cash flow
generation by leveraging its improved scale, footprint, and
supplier relationships."
S&P could lower its rating on Mainline if its leverage rises above
6.5x and its FOCF to debt falls below 2.5%, absent near-term
prospects for an improvement. This could occur due to:
-- Declining profitability stemming from the inability to achieve
its targeted synergies, missteps in integrating Converge, or
increased competition;
-- Weak demand for its products from its key suppliers or a
downturn in customer IT spending due to a recession; or
-- The company employs a more-aggressive financial policy,
including further acquisitions, which causes its leverage to rise
above 6.5x.
S&P said, "Although unlikely given its financial-sponsor ownership,
we could raise our rating on Mainline if it outperforms our
forecast expectations and reduces its leverage below 5x. We would
also require the company to develop a track record of maintaining
its leverage at these improved levels before raising the rating."
MISS BRENDA: Case Summary & One Unsecured Creditor
--------------------------------------------------
Debtor: Miss Brenda, LLC
P.O. Box 98
Sand Point, AK 99661
Business Description: Miss Brenda is a commercial fishing business
located in Sand Point, Alaska, focusing on
the use of fishing nets, crab and cod traps,
and various other equipment to catch marine
species.
Chapter 11 Petition Date: March 19, 2025
Court: United States Bankruptcy Court
District of Alaska
Case No.: 25-00036
Debtor's Counsel: Jennifer L. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
1403 8th Street
Marysville, WA 98270
Tel: (425) 212-4800
Fax: (425) 212-4802
E-mail: courtmail@expresslaw.com
Total Assets: $1,572,000
Total Liabilities: $842,546
The petition was signed by Jack Berntsen as managing member.
The Debtor has identified Bush Kornfield LLP, located at 601 Union
St., Suite 5000, Seattle, WA 98101-2373 as its only unsecured
creditor, holding a claim of $45,546 for legal services.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/EG3RQBQ/Miss_Brenda_LLC__akbke-25-00036__0001.0.pdf?mcid=tGE4TAMA
MITEL NETWORKS: Moody's Cuts CFR to C Following Bankruptcy Filing
-----------------------------------------------------------------
Moody's Ratings downgraded Mitel Networks (International) Limited's
(Mitel) corporate family rating to C from Ca and its probability of
default rating to D-PD from Ca-PD. At the same time, Moody's
downgraded the ratings on Mitel's main operating company, MLN US
Holdco LLC's (MLN US Holdco) backed senior secured bank credit
facilities (super-priority revolving credit facility and term loan)
to C from B3, backed senior secured second out term loan to C from
Ca and affirmed the C ratings on its backed senior secured third
out term loan, initial backed senior secured first lien term loan
(legacy), and initial backed senior secured second lien term loan
(legacy). The outlooks for Mitel and MLN US Holdco remain stable.
This action follows Mitel's March 9, 2025 filing for Chapter 11
bankruptcy protection in the Southern District of Texas.
Governance considerations are material to the rating action because
of Mitel's high financial leverage, track record of distressed
exchanges, and significantly limited debt capital sources due to
weak debt trading prices, which led to an untenable capital
structure and the bankruptcy filing.
RATINGS RATIONALE
The Chapter 11 bankruptcy filing has resulted in a downgrade of
Mitel's PDR to D-PD, reflecting the company's default on its debt
agreements. The filing follows a period in which Mitel faced
operational pressures that led to an untenable capital structure.
The C ratings on all of MLN US Holdco's debt instruments reflect
Moody's views on potential recoveries.
The stable outlook reflects Moody's views that the ratings are
properly positioned based on expected recoveries.
Shortly following this rating action, Moody's will withdraw all the
ratings of Mitel and MLN US Holdco.
Mitel, headquartered in Ottawa, Ontario, Canada, provides phone
systems, collaboration applications (voice, video calling, audio
and web conferencing, instant messaging etc.) and contact center
solutions through on-site and cloud offerings. Prior to the Chapter
11 filing, Mitel was majority-owned by Searchlight Capital
Partners.
MJM LANDSCAPE: Court Extends Cash Collateral Access to April 30
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona granted MJM
Landscape Associates, Inc.'s motion to use cash collateral until
April 30.
The court authorized MJM to use cash collateral to pay ordinary and
necessary business expenses as set forth in its budget.
MJM projects total operational expenses of $384,582.05 for March
and $389,207.05 for April.
All creditors holding a security interest in cash collateral will
have a post-petition lien with the same validity and priority as
their pre-bankruptcy liens.
About MJM Landscape Associates
MJM Landscape Associates, Inc. filed Chapter 11 petition (Bankr. D.
Ariz. Case No. 25-00663) on January 27, 2025, listing between
$500,001 and $1 million in assets and between $1 million and $10
million in liabilities.
Judge Brenda Moody Whinery oversees the case.
The Debtor is represented by:
Charles R. Hyde, Esq.
Law Offices of C.R. Hyde, PLC
2810 N. Swan Rd. #150
Tucson, AZ 85712
Tel: 520-270-1110
Email: crhyde@gmail.com
MLN US HOLDCO: Seeks to Hire Stretto as Claims and Noticing Agent
-----------------------------------------------------------------
MLN US Holdco, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Stretto, Inc. as claims, noticing and solicitation agent.
Stretto will oversee the distribution of notices and will assist in
the maintenance, processing, and docketing of proofs of claim filed
in the Chapter 11 cases of the Debtors.
Prior to the petition date, the Debtors provided Stretto an advance
fee in the amount of $25,000.
Sheryl Betance, a senior managing director at Stretto, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Sheryl Betance
Stretto Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Telephone: (800) 634-7734
Email: support@stretto.com
About MLN US Holdco
The Debtors and their non-debtor affiliates are a global provider
of business telecommunication solutions, offering on-premise,
cloud, and hybrid services to help organizations of all sizes
connect and collaborate reliably. They have expanded their
capabilities and offerings through strategic acquisitions and
partnerships, enhancing its portfolio of software, hardware, and
services. They serve a wide range of industries, delivering
flexible solutions to meet the needs of diverse customers
worldwide.
MLN US Holdco, LLC and its affiliates filed their Chapter 11
petitions (Bankr. S.D. Tex. Lead Case No. 25-90090) on March 9,
2025, listing up to $10 billion in both consolidated assets and
liabilities. Janine Yetter, authorized signatory, signed the
petitions.
Judge Christopher M. Lopez oversees the case.
The Debtors tapped Porter Hedges LLP and Paul, Weiss, Rifkind,
Wharton & Garrison LLP as counsel; Goodmans LLP as Canadian
counsel; PJT Partners LP as investment banker and financial
advisor; and FTI Consulting, Inc. as restructuring advisor.
Stretto, Inc. is the Debtors' claims, noticing and solicitation
agent.
MMA LAW FIRM: Reaches Ch. 11 Deal with Equal Access Justice Fund
----------------------------------------------------------------
Hilary Russ of Law360 reports that bankrupt Houston law firm MMA
Law Firm PLLC has agreed to share proceeds from its mass tort
lawsuits with key creditor Equal Access Justice Fund LP in exchange
for support of its Chapter 11 plan.
About MMA Law Firm
MMA Law Firm, PLLC is a Houston-based law firm specializing in
insurance claim management, negotiation and litigation.
MMA Law Firm filed Chapter 11 petition (Bankr. S.D. Texas Case No.
24-31596) on April 9, 2024, with $100 million to $500 million in
assets and $10 million to $50 million in liabilities. Zach Moseley,
managing member, signed the petition.
Judge Eduardo V. Rodriguez oversees the case.
The Debtor is represented by Johnie Patterson, Esq., at Walker &
Patterson, P.C.
MMK FAMILY: Gets Extension to Access Cash Collateral
----------------------------------------------------
MMK Family Investments, Inc. received second interim approval from
the U.S. Bankruptcy Court for the District of Maine to use cash
collateral.
The second interim order authorized the company to use cash
collateral to pay the expenses set forth in its budget, with a 125%
cap on expenditures.
The 13-week budget projects total cash disbursements of $256,033
for the period from Feb. 23 to May 24.
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 April 3.
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.
The Debtor is Represented By:
Adam R. Prescott, Esq.
Bernstein Shur Sawyer & Nelson, PA
Tel: 207-228-7145
Email: aprescott@bernsteinshur.com
MMK SUBS: Gets Extension to Access Cash Collateral
--------------------------------------------------
MMK Subs, LLC received second interim approval from the U.S.
Bankruptcy Court for the District of Maine to use cash collateral.
The second interim order authorized the company to use cash
collateral to pay the expenses set forth in its 13-week budget,
with a 125% spending cap.
The budget projects total cash disbursements of $267,644 for the
period from Feb. 23 to May 24.
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.
A final hearing is scheduled for April 3.
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
MZS PROPERTIES: Gets OK to Use Cash Collateral Until April 30
-------------------------------------------------------------
MZS Properties, LLC got the green light from the U.S. Bankruptcy
Court for the Northern District of Illinois, Eastern Division, to
use cash collateral until April 30.
The order signed by Judge Jacqueline Cox authorized the company to
use cash collateral on an interim basis to pay the expenses set
forth in its budget.
As protection for the use of its cash collateral, Sharestates
Investments DACL, LLC was granted replacement liens on the
company's assets to the same extent, validity and priority as its
pre-bankruptcy liens.
A status hearing is set for April 22.
About MZS Properties
MZS Properties, LLC filed Chapter 11 petition (Bankr. N.D. Ill.
Case No. 25-01523) on January 31, 2025, listing up to $500,000 in
both assets and liabilities. Mouzma Syed, manager of MZS
Properties, signed the petition.
Judge Jacqueline Cox oversees the case.
Bradley Foreman, Esq., at the Law Offices of Bradley H. Foreman,
P.C., represents the Debtor as bankruptcy counsel.
NAVEO INC: Court Extends Cash Collateral Access to April 19
-----------------------------------------------------------
Naveo, Inc. received another extension from the U.S. Bankruptcy
Court for the Northern District of Illinois, Eastern Division to
use the cash collateral of Waukesha State Bank.
The 11th interim order extended the company's authority to use cash
collateral until April 19 to pay the expenses set forth in its
budget. Naveo may exceed the budget by up to 110%.
The budget shows the company's projected weekly expenses of $10,048
for the interim period.
A further hearing is scheduled for April 16.
About Naveo Inc.
Naveo Inc. specializes in B2B printing, full-service B2B marketing,
social media marketing, SEO and industry-specific branding.
Naveo filed Chapter 11 petition (Bankr. N.D. Ill. Case No.
24-06990) on May 10, 2024, with $357,689 in assets and $1,288,957
in liabilities. Ilija Nedev, president of Naveo, signed the
petition.
Judge Deborah L. Thorne presides over the case.
The Debtor is represented by Jeffrey K. Paulsen, Esq., at The Law
Office of William J. Factor, Ltd.
Waukesha State Bank, as lender, is represented by:
Richard G. Larsen, Esq.
Springer Larsen, LLC
300 S. County Farm Road, Suite G
Wheaton, IL 60187
Phone: 630-510-0000
Fax: 630-510-0004
NEDDY LLC: Court Extends Cash Collateral Access to April 30
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona extended
Neddy, LLC's authority to use cash collateral from March 15 to
April 30.
The order signed by Judge Brenda Martin authorized the company to
use cash collateral to pay the expenses set forth in its budget.
Neddy projects total operational expenses of $49,151 for March and
$83,263 for April.
As protection, The Huntington Bank will receive monthly payments of
$7,500, plus $400 in line-of-credit interest. In addition, the bank
was granted replacement liens on its pre-bankruptcy collateral,
with the same priority and extent as its pre-bankruptcy liens.
About Neddy LLC
Neddy LLC, operating as Fortress Asphalt, is a construction company
based in Peoria, Ariz.
Neddy filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 25-01459) on February 22,
2025, listing between $500,000 and $1 million in assets and between
$1 million and $10 million in liabilities.
Judge Brenda K. Martin handles the case.
The Debtor is represented by Alan A. Meda, Esq., at Burch &
Cracchiolo, PA.
The Huntington Bank, as secured creditor, is represented by:
Nicholas S. Bauman, Esq.
Womble Bond Dickinson (US) LLP
Tel: +1 602.262.5746
Nick.Bauman@wbd-us.com
NORTHVOLT AB: Advances Talks to Ensure Ongoing Operations
---------------------------------------------------------
Monique Mulima of Bloomberg Law reports that Northvolt AB has
advanced in negotiations to maintain operations within the
bankruptcy framework, according to Mikael Kubu, the trustee
overseeing the company’s bankruptcy proceedings, as stated by a
spokesperson.
According to Bloomberg Law, the business will operate on a smaller
scale, with continued operations dependent on financial commitments
from shareholders. Further information regarding the extent of
maintained operations will be disclosed to stakeholders next week.
The outlook for selling the business as a battery cell producer
appears favorable, the report states.
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.
OMEGA THERAPEUTICS: Seeks to Hires Ordinary Course Professionals
----------------------------------------------------------------
Omega Therapeutics, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to retain non-bankruptcy
professionals in the ordinary course of business.
The Debtors need ordinary course professionals to perform services
for matters unrelated to these Chapter 11 cases.
The Debtors seek to pay OCPs 100 percent of the fees and expenses
incurred.
The Debtors do not believe that any of the ordinary course
professionals have an interest materially adverse to them, their
estates, creditors, or other parties in interest in connection with
the matter upon which they are to be engaged.
The OCPs include:
a. Day Pitney LLP
Legal Services - Intellectual Property
b. Foley Hoag LLP
Legal Services - Intellectual Property
c. K&L Gates LLP
Legal Services - Intellectual Property
d. McCarter & English, LLP
Legal Services - Intellectual Property
e. Wolf, Greenfield & Sacks, P.C.
Legal Services - Intellectual Property
f. Hogan Lovells
Legal Services - Intellectual Property
g. EY
Tax / Compliance Consultants
h. Latham & Watkins LLP
Special counsel
About Omega Therapeutics
Omega Therapeutics Inc. 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.
Omega Therapeutics Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-10211) on February 10,
2025. In its petition, the Debtor reports total assets as of Jan.
28, 2025 amounting to $137,529,941 and total debts as of Jan. 28,
2025 of $140,421,354.
Honorable Bankruptcy Judge Brendan Linehan Shannon handles the
case.
The Debtor is represented by Derek C. Abbott, Esq., Eric D.
Schwartz, Esq., Andrew R. Remming, Esq., Daniel B. Butz, Esq.,
Jonathan M. Weyand, Esq., and Luke Brzozowski, Esq., at Morris,
Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware.
The Debtor's restructuring advisor is Triple P RTS, LLC.
The Debtor's investment banker is Triple P Securities, LLC.
The Debtor's special counsel is Latham & Watkins LLP.
The Debtor's claims agent & administrative advisor is Kroll
Restructuring Administration LLC.
ORANGE TUMBLER: Gets OK to Use Cash to Pay U.S. Trustee Fees
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maine issued an order
authorizing Orange Tumbler, LLC to use cash collateral.
The order, signed by Judge Michael Fagone, authorized the company
to use the cash collateral deposited in its debtor-in-possession
(DIP) account (account ending in 4235) with TD Bank to pay the
quarterly fees of the U.S. Trustee for Region 1.
Orange Tumbler was also ordered to deposit into the DIP account
rents from its three-unit apartment building in Auburn, Maine.
About Orange Tumbler
Orange Tumbler, LLC filed Chapter 11 petition (Bankr. D. Maine Case
No. 24-20254) on December 6, 2024, listing up to $500,000 in both
assets and liabilities. Ricky Drew, manager of Orange Tumbler,
signed the petition.
Judge Michael E. Fagone oversees the case.
Michael P. Boyd, Esq., represents the Debtor as legal counsel.
Bangor Savings Bank, as lender, is represented by:
Jeremy R. Fischer, Esq.
Drummond Woodsum
84 Marginal Way, Suite 600
Portland, Maine 04101-2480
Telephone: (207) 772-1941
Email: jfischer@dwmlaw.com
OTB HOLDING: Shuts Down 77 Locations After Chapter 11 Filing
------------------------------------------------------------
When On the Border filed for Chapter 11 bankruptcy on March 5, the
company immediately closed nearly 80 locations. That's almost
two-thirds of its stores, according to the Chapter 11 filing in
U.S. Bankruptcy Court for the Northern District of Georgia.
On the Border wants to get out of its lease obligations.
As of the March 5 filing the company had 113 restaurant-location
leases, a "significant number" of which are for locations that
aren't operating," the company said. The company wants "to reject
the leases for non-operational restaurants as of the petition date,
it said.
The filing laid out a key source of the company's financial
struggles.
In 2024 the company spent some $25.3 million on lease obligations,
around $11.9 million of which relate to underperforming stores," it
said. "Given the company's operational headwinds and financial
position, payment of lease obligations associated with
nonperforming leases has caused significant strains on the
company's liquidity," it added.
About OTB Holding LLC
OTB Holding LLC The Debtors are the operators of the well-known
restaurant brand "On The Border Mexican Grill & Cantina," which
focuses on the development, operation, and franchising of casual
dining establishments in the U.S. and South Korea. Founded in 1982
in Dallas, Texas, On The Border is recognized for its sizzling
mesquite-grilled fajitas, award-winning margaritas, house-made
salsa, and endless chips and salsa. Over the past 40 years, the
brand has expanded from a single cantina into one of the most
popular Tex-Mex chains in the country, offering a wide range of
flavorful dishes inspired by Texas and Mexico. With more than 80
locations in the U.S. and internationally, it has become a go-to
spot for fresh Tex-Mex food and lively dining experiences. On The
Border stands out in the casual dining industry by leveraging its
unique and authentic brand. As of the Petition Date, the Debtors
continue to operate 60 restaurant locations across 18 states, all
of which are leased. In addition, the Company has franchise
agreements with third parties who run 20 additional locations in
the U.S. and South Korea.
The Debtor sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ge. Case No. 25-52415 (SMS) on March 4, 2025. In
the petitions signed by Jonathan Tibus as chief restructuring
officer, the Debtor reports an estimated assets of $10 million to
$50 million and liabilities of $10 million to $50 million.
Seven affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
OTB Holding LLC (Lead Case) 25-52415
OTB Acquisition LLC 25-52416
OTB Acquisition of New Jersey LLC 25-52417
OTB Acquisition of Howard County LLC 25-52418
Mt. Laurel Restaurant Operations LLC 25-52419
OTB Acquisition of Kansas LLC 25-52420
OTB Acquisition of Baltimore County, LLC 25-52421
Judge Sage M. Sigler presides over the case.
Jeffrey R. Dutson, Esq., Brooke L. Bean, Esq., and Kyung Won Song,
Esq., at KING & SPALDING LLP, represent the Debtors as legal
counsel.
ALVAREZ & MARSAL NORTH AMERICA, LLC serves as the Debtors' Chief
Restructuring Officer Provider.
KURTZMAN CARSON CONSULTANTS, LLC serves as the Debtors' Claims &
Noticing Agent.
HILCO CORPORATE FINANCE, LLC represents the Debtors as Lead
Investment Banker.
OTB HOLDING: U.S. Trustee Appoints Creditors' Committee
-------------------------------------------------------
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of OTB
Holding, LLC and its affiliates.
The committee members are:
1. Infinite Agency, LLC
c/o Josh Jones, VP, Finance and Operations
2122 Kidwell Street
Suite 100
Dallas, TX 75214
josh@theinfiniteagency.com
(903) 821-7932
2. Rangers Stadium Company LLC
c/o Eunice Nakamura
734 Stadium Drive
Arlington, TX 76011
enakamura@texasrangers.com
(817) 533-1773
3. Wallen Ventures, LLC
c/o Ed Wallen, Managing Member
160 Hilltop Farm Lane
Strasburg, VA 22657
ed.wallen@gmail.com
(202) 352-0466
4. RAMA IL, LLC
c/o Mohan Korrapati
16743 Bridgehampton Club Dr.
Indian Land, SC 29707
mohankorrapati@yahoo.com
(704) 363-9619
5. VEREIT, Inc. (Realty Income Corporation)
c/o Kyle Campbell
11995 El Camino Real
San Diego, CA 92130
kcampbell@realtyincome.com
(858) 284-5215
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About OTB Holding LLC
OTB Holding LLC The Debtors are the operators of the well-known
restaurant brand "On The Border Mexican Grill & Cantina," which
focuses on the development, operation, and franchising of casual
dining establishments in the U.S. and South Korea. Founded in 1982
in Dallas, Texas, On The Border is recognized for its sizzling
mesquite-grilled fajitas, award-winning margaritas, house-made
salsa, and endless chips and salsa. Over the past 40 years, the
brand has expanded from a single cantina into one of the most
popular Tex-Mex chains in the country, offering a wide range of
flavorful dishes inspired by Texas and Mexico. With more than 80
locations in the U.S. and internationally, it has become a go-to
spot for fresh Tex-Mex food and lively dining experiences. On The
Border stands out in the casual dining industry by leveraging its
unique and authentic brand. As of the Petition Date, the Debtors
continue to operate 60 restaurant locations across 18 states, all
of which are leased. In addition, the Company has franchise
agreements with third parties who run 20 additional locations in
the U.S. and South Korea.
OTB Holding and six affiliates sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ge. Lead Case No. 25-52415)
on March 4, 2025. In the petitions signed by Jonathan Tibus as
chief restructuring officer, OTB Holding reported an estimated
assets of $10 million to $50 million and liabilities of $10 million
to $50 million.
Judge Sage M. Sigler presides over the cases.
Jeffrey R. Dutson, Esq., Brooke L. Bean, Esq., and Kyung Won Song,
Esq., at King & Spalding LLP, represent the Debtors as legal
counsel. The Debtors also tapped Alvarez & Marsal North America LLC
as restructuring advisor; Hilco Corporate Finance, LLC as
investment banker; and Kurtzman Carson Consultants, LLC as claims
and noticing agent.
OWENS AND MINOR: S&P Rates New Senior Secured Term Loan 'BB-'
-------------------------------------------------------------
S&P Global Ratings revised its outlook on Owens & Minor Inc. (OMI)
to negative from stable and affirmed all its ratings on the
company.
At the same time, S&P issued a 'BB-' issue-level rating to the
company's new senior secured term loan.
S&P said, "The negative outlook reflects our expectation that Owens
& Minor's leverage will likely remain above our 4.5x downgrade
threshold over the next year and it also reflects the uncertainty
regarding the potential sale of the PHS business and whether it
will reduce leverage enough to offset the reduced scope and
diversity of the business.
"We revised our outlook because OMI underperformed our expectations
in 2024 and we now expect the Rotech acquisition will cause
leverage to spike above 5x in 2025, before returning below 4.5x in
2026. OMI's revenue growth was roughly in line with our
expectations for 2024, but profitability and cash flow were much
lower than expected and the company ended the year with leverage of
4.4x compared with our expectation for 3.6x. This provides the
company with less cushion than we anticipated to absorb the Rotech
financing and we now expect leverage will be materially above our
4.5x downgrade threshold in 2025 and likely will not return back
below 4.5x until 2026. Pro forma for a full year of Rotech, we
would expect leverage will still be about 4.5x in 2025. The company
will be dependent on realizing its planned acquisitions synergies,
reducing realignment costs, and growing its base business to reduce
leverage materially below our 4.5x downgrade threshold by 2026.
"The potential sale of its products and healthcare Services (PHS)
segment will likely lead to a less favorable assessment of OMI's
business risk. The home health market is growing faster than OMI's
PHS business but it is highly competitive and is exposed to
reimbursement risk from Medicare and managed care plans. We
currently view the combination of the medical-surgical distribution
business and the home health business as a positive due to the
increased diversity and stability relative to a pure-play home
health distributor. If OMI sells the PHS business, we would likely
change our leverage threshold at the 'BB-' rating to be 4x, which
is in line with key peer AdaptHealth Corp. This lower leverage
threshold would make it harder for the company to maintain the
'BB-' rating unless it sells the PHS business at an attractive
multiple and uses all of the proceeds to repay debt. The increased
uncertainty related to the sale price of the PHS business and the
use of the proceeds also contribute to the negative outlook.
"We do not view the Rotech acquisition as a change in financial
policy, but further acquisitions while leverage remains elevated,
or significant share repurchases, would lead us to change our
assessment. Rotech is the company's third acquisition in the home
health space since 2017. Management has expressed a long-term
target leverage of 2x-3x, but has also shown a willingness to
temporarily take leverage up above that level to pursue
acquisitions, with a track record of focusing on quickly reducing
leverage back toward its target. While leverage did not decline as
much as anticipated prior to the Rotech acquisition, we still
expect the company will prioritize debt repayment and leverage
reduction after it closes. However, we believe there is virtually
no capacity for additional acquisitions at the 'BB-' rating within
the next few years until leverage declines closer to its long-term
target. The company also recently announced a $100 million share
repurchase policy, which is in line with our view that the company
could periodically pursue opportunistic share repurchases. We don't
view this authorization to be significant enough to signal a shift
in policy, and still expect the primary use of capital will be
repaying debt and/or re-investing in the business.
"The negative outlook reflects our expectation that OMI's leverage
will remain above 4.5x for the next year. It also reflects the
uncertainty regarding the potential sale of the PHS business and
whether it will reduce leverage enough to offset the reduced scope
and diversity of the business."
S&P could lower its rating on OMI if S&P expects its leverage to
remain above 4.5x on a sustained basis. This could occur if:
-- There is a significant underperformance in its base business,
or integration challenges with the Rotech acquisition, such that
EBITDA remains near 2024 levels; or
-- The company becomes more aggressive with its financial policy
and focuses on shareholder-rewarding activities or additional
acquisitions instead of debt repayment.
Alternatively, S&P could lower the rating if OMI sells its PHS
business at a value that does not provide significant deleveraging,
and S&P expects it to operate as a 100% patient direct business
with leverage of over 4x.
S&P could consider revising the outlook to stable if:
-- S&P sees substantial improvements in both profitability and
cash flow generation in 2025 such that it has an increased
certainty that leverage will quickly decline back below 4.5x; or
-- The company sells the PHS segment at an attractive multiple,
such that S&P believes the company will operate as a 100% patient
direct business with leverage below 4x starting in 2026.
PALLET CONSULTANTS: Hires McDowell Law PC as Bankruptcy Counsel
---------------------------------------------------------------
Pallet Consultants North America, LLC seeks approval from the U.S.
Bankruptcy Court for the District of New Jersey to hire McDowell
Law, PC as counsel.
The firm's services include:
a. providing the Debtor with legal advice with respect to its
powers and duties as debtor-in-possession;
b. preparing on behalf of the Debtor or assisting Debtor in
preparing all necessary pleadings, motions, applications,
complaints, answers, responses, orders, trustee reports and other
legal papers;
c. representing the Debtor in any matter involving contests
with secured or unsecured creditors, including the claims
reconciliation process;
d. representing the Debtor in providing legal services
required to prepare, negotiate and implement a plan of
reorganization; and
e. performing all other legal services for the Debtor which
may be necessary, other than those requiring specialized expertise
for which special counsel, if necessary, may be employed.
The firm's counsel will be paid at these hourly rates:
Ellen McDowell, Attorney $450
Joseph Riga, Attorney $450
Associates $275 to $325
Paralegals $150
The Debtor has agreed to pay the firm a retainer in the amount of
$10,000.
Ms. McDowell disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Ellen M. McDowell, Esq.
McDowell Law PC
46 West Main Street
Maple Shade, NJ 08052
Tel: (856) 482-5544
Email: emcdowell@mcdowelllegal.com
About Pallet Consultants North America, LLC
Pallet Consultants North America, LLC filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J.
Case No. 25-12075) on February 28, 2025, listing $100,001 to
$500,000 in assets and $500,001 to $1 million in liabilities. Ellen
M. McDowell, Esq. at Mcdowell Law, PC represents the Debtor as
counsel.
PALOMAR HEALTH: Fitch Lowers IDR to 'B-', Outlook Negative
----------------------------------------------------------
Fitch Ratings has downgraded the following outstanding bonds issued
by Palomar Health, CA (Palomar) to 'B-' from 'B':
- Series 2016 and 2017 refunding revenue bonds;
- Series 2007A, 2009A 2010A general obligation (GO) bonds;
- Series 2017 and 2021 issued by California Municipal Finance
Authority on behalf of Palomar Health, and 2022 (taxable), 2022
COPs.
Fitch has also downgraded Palomar's Issuer Default Rating (IDR) to
'B-' from 'B' and its series 2016A & B unlimited tax GO (ULTGO)
bonds to 'BB+' from 'BBB-'.
The Rating Outlook is Negative on all series of debt.
Entity/Debt Rating Prior
----------- ------ -----
Palomar Health (CA) LT IDR B- Downgrade B
Palomar Health (CA)
/General Obligation
- Unlimited Tax –
Dedicated Tax/1 LT LT BB+ Downgrade BBB-
Palomar Health (CA)
/General Obligation
- Unlimited Tax/1 LT LT B- Downgrade B
Palomar Health (CA)
/General Revenues/1 LT LT B- Downgrade B
The downgrade to 'B-' reflects Palomar's continued pressured
financial performance over the past 18 months as the organization
addresses various financial challenges. As of Jan. 31, 2025
(seven-months ended; unaudited), Palomar recorded a large loss from
operations of approximately $73.6 million. This resulted in a
negative 12.2% operating margin but a positive 2.9% operating
EBITDA margin (inclusive of tax-supported revenues and expenses).
While Fitch still views the organization's financial performance as
weak, operations have begun to demonstrate some improvement since
fiscal 2024's low point, which was marked by an operating margin of
negative 20.9% and an operating EBITDA margin of negative 3.2%.
Palomar's liquidity remains a primary credit risk and decreased
from fiscal 2024's balance to about $64.3 million in unrestricted
cash and investments by January 2025 (down from about $85.2 million
at fiscal year-end). This decrease resulted in just 23.6 days of
cash on hand (as reported by Palomar), down from 31 days at fiscal
year-end. Fitch considers Palomar's liquidity position very low and
an asymmetric risk to the organization. The district's debt burden
remains very high and weak, with a 113% debt-to-capitalization
ratio (excluding the GO bonds) and debt service coverage for the
interim period at approximately negative 0.19x.
Palomar's liquidity remains a primary credit risk. It dropped to
about $64.3 million in unrestricted cash and investments through
the January 2025 interim period (from approximately $85.2 million
at FYE). This decreased days cash on hand to 23.6 (as reported by
Palomar; down from 31 days at FYE). Fitch views Palomar's liquidity
position as very low and as an asymmetric risk to the organization.
The district's debt burden continues to be weak, with a very high
113% debt to capitalization ratio (exclusive of the GO bonds) and
debt service coverage for the interim period of approximately
negative 0.19x.
The downgrade of Palomar's ULTGO bonds to 'BB+' reflects Fitch's
assessment that the pledged revenues for repayment of these bonds
meet the definition of "pledged special revenues" under the U.S.
Bankruptcy Code. As such, the bond's security protections warrant a
rating of up to five notches higher than the district's IDR.
Palomar successfully negotiated and finalized a forbearance
agreement (FA) with outstanding debtors for a one-year period that
expires in January 2026. Its annual financial covenants (days cash
on hand and debt service coverage) are waived through this
forbearance period. The FA encompasses enhanced reporting
requirements, enactment of a financial turnaround plan in
conjunction with consultants, monthly debt service deposits into a
sinking fund (beginning in May), and no additional debt without
consent, among other things. Management reports the financial
turnaround plan has already commenced and is yielding financial
benefits.
Removal of the Negative Watch and assignment of a Negative Outlook
reflects the persistent and severe challenges Palomar still
confronts as management navigates significant financial stress and
uncertainty. Fitch may consider revising the Outlook to Stable if
management succeeds with various strategic and operational
priorities over the next 18-months and improves operating
performance and unrestricted balance sheet resources.
The district's credit strengths include a sizable market position,
good historical capital investment in plant, and a diverse tax
base. The unlimited nature of the tax levy offsets potential tax
base volatility.
SECURITY
The revenue bonds are secured by a gross revenue pledge (excludes
restricted property tax revenues) of the obligated group (OG). The
OG consists of PH's acute care facilities, Palomar Health Medical
Group (PHMG) and other healthcare-related entities. The GO bonds
are secured by unlimited ad valorem taxes (ULT) levied on all
taxable property within the district.
KEY RATING DRIVERS
Revenue Defensibility - b
Weaker Market Position in Competitive Service Area; High
Governmental Payor Mix
Palomar's weak revenue defensibility reflects the organization's
dampened historical patient utilization trends and higher
governmental payor mix with Medicare, Medi-Cal and self-pay payors
comprising around 78% of total gross revenues. The organization's
overall volume mix, which is composed of more governmental payors,
has negatively impacted financial performance.
Palomar's primary competitors are Scripps Health, Sharp HealthCare,
Kaiser Permanente, and University of California - San Diego Health.
The district's market share has declined over the last several
years, while competitor market positions have remained stable or
improved, which is a credit risk.
However, Fitch still views Palomar's healthcare services as
essential to North San Diego County as the district maintains the
only trauma center andNICU within the county boundaries. The
district serves the communities within an 800-square-mile area,
with its trauma center covering more than 2,200 square miles of
South Riverside and North San Diego counties.
Operating Risk - b
Weak & Challenged Financial Performance; Potentials for
Improvement
The weak operating risk assessment reflects the Palomar's severely
challenged financial performance, which was one of Fitch's primary
credit concerns that supported the rating downgrade to 'B' in
December 2024. As of June 30, 2024 (fiscal year-end unaudited),
Palomar recorded a significant loss from operations of
approximately $200 million, which resulted in a negative 20.9%
operating margin and negative 3.2% operating EBITDA margin
(inclusive of tax-supported revenues and expenses).
Thus far through fiscal 2025 (7-months interim), performance has
begun to show signs of improvement, albeit still weak, with the
organization posting a positive 2.9% operating EBITDA margin.
Palomar's financial turnaround plan, which is largely in place, has
already implemented approximately $72 million of various
improvements with a total goal of achieving approximately $150
million in targets. Improvements to both revenue and expenses have
included curtailing expenses through closing certain programs,
restructuring supply chain, executing purchased service department
and contract savings, enhancing certain patient care service lines,
improving productivity, and reducing some personnel positions.
Palomar's historical challenges included a cyberattack in May 2024
that severely impacted operations, continuation of pressured volume
trends, and heightened expenses primarily from labor and supplies.
Programmatic delays also increased expense and resulted in a
failure to meet budgeted revenues.
Historical net capex has been satisfactory with the organization
spending an average of 83.8% of annual depreciation expense over
the past four fiscal years. Average age of plant is good at 8.2
years, and the district's facilities are largely seismically
compliant. Fitch analysts have toured the main facility in
Escondido and view the campus as up-to-date.
Financial Profile - b
High Leverage Position; Very Thin Unrestricted Balance Sheet
Resources
Palomar's weaker financial profile reflects its leveraged debt
position and low amount of unrestricted balance sheet resources. In
fiscal 2024, Palomar had approximately $85.2 million of
unrestricted cash and investments (UCI), which was down from $203.1
million of unrestricted cash and investments in fiscal 2023.
Through January 2025 interim period, UCI fell further to
approximately $64 million, which translated into a low 23.6 days'
cash on hand and 6.1% cash-to-adjusted debt, which excludes the GO
debt. Management reports it will be able to pay its required debt
service payments and intergovernmental transfers through April/May
2025, but unrestricted balance sheet resources may decline further
as a result.
Fitch's forward-looking analysis indicates that the district's
financial profile will remain challenged in the medium term, but
will start to improve as the financial turnaround plan takes
effect. These improvements could lead to positive outcomes,
gradually rebuilding the organization's liquidity and stabilizing
operations with a goal of breaking even monthly by June 2026.
Fitch's forward-looking analysis indicates that the district's
financial profile will remain challenged in the medium term but
start to improve as the financial turnaround plan takes hold. These
improvements could gradually rebuild its liquidity position while
stabilizing operations with the goal of being breakeven over time.
Dedicated Tax Key Rating Drivers
The ULTGO bond rating is based on a dedicated tax analysis that
considers the strength and growth prospects of the tax base, as
well as the legal structure of the bonds. The bonds' structural
elements and security features are strong enough to warrant a
rating up to five notches above the district's IDR.
Strong Tax Base: The economic resource base supporting the GO debt
is diverse, growing at a healthy pace and has been very stable
through the recent downturn related to the pandemic. The unlimited
nature of the tax levy offsets tax base volatility.
Asymmetric Additional Risk Considerations
Fitch views Palomar's liquidity position as an asymmetric risk to
the organization and a primary credit risk. At Jan. 31, 2025
(unaudited), PH had approximately $64.3 million in unrestricted
cash and investments, which translated into a low 23.6 days cash on
hand.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- If Palomar is unable to significantly improve operations that
further pressures its already thin liquidity position and metrics,
which would result in delinquency in paying vendors and inability
to service other key obligations.
- If management believes the organization will not be able to
achieve its financial turnaround plan, which would mean defaulting
on payments becomes a real possibility.
- If capital-related metrics (unrestricted cash to adjusted debt
and debt to capitalization) continue to decline from current
levels;
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- If operating performance significantly improves and Palomar is
able to demonstrate some level operating stability, which would
support unrestricted balance sheet resource stabilization and
material growth.
- If Palomar is able to successfully execute upon a broader
strategic plan that quickly changes and enhances the organization's
financial position.
PROFILE
Palomar Health is California's largest public healthcare district.
It is the largest trauma district in the state, covering 800 square
miles in northern San Diego County. The district owns and operates
two hospitals in northern San Diego County: the 286-bed Palomar
Medical Center Escondido (PMCE, opened in August 2012) and the
95-bed Palomar Medical Center Poway (PMCP, opened in 1977). Palomar
also owns and operates The Villas at Poway, a 129-bed skilled
nursing facility adjacent to PMCP.
Fiscal 2024 (June 30 YE; audited) total revenue was approximately
$960 million, which included approximately $23.4 million of
unrestricted property tax revenues to support operations and $46.8
million of restricted property tax revenues for debt service
payments on the GO bonds.
Sources of Information
In addition to the sources of information identified in Fitch's
applicable criteria specified below, this action was informed by
data from Lumesis.
ESG Considerations
Palomar Health (CA) has an ESG Relevance Score of '4' for
Governance Structure due to a prior cyber-related event, which has
a negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.
Palomar Health (CA) has an ESG Relevance Score of '4' for
Management Strategy due to a prior cyber-related event, which has a
negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.
Palomar Health (CA) has an ESG Relevance Score of '4' for Group
Structure due to a prior cyber-related event, which has a negative
impact on the credit profile, and is relevant to the rating[s] 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.
PBF HOLDING: Fitch Alters Outlook on 'BB' LongTerm IDR to Negative
------------------------------------------------------------------
Fitch Ratings has revised PBF Holding Company LLC's (PBFH) Rating
Outlook to Negative from Stable while affirming the Long-Term
Issuer Default Rating at 'BB' and assigning an issue-level rating
of 'BB' with a Recovery Rating of 'RR4' to the new proposed senior
unsecured notes. The Negative Outlook reflects increased structural
gross debt indicating a less conservative financial policy and
higher leverage in the short term. These concerns are coupled with
the potential for further liquidity strains driven by uncertainty
in the refining market as well as the impacts of the Martinez
fire.
Key factors impacting the rating include strong geographic
diversification and the company's effective strategy to manage
Renewable Identification Number (RIN) liabilities through the
cycle. Offsetting factors include minimal non-refining
diversification, volatile refining sector conditions, the potential
of tariffs to impact refining margins, and a relatively higher cost
structure than its peers.
Key Rating Drivers
Increased Debt, Liquidity Concerns: Fitch views the increased
structural gross debt resulting from the unsecured notes
transaction in conjunction with the potential for further stresses
to liquidity as a negative development for PBFH's credit profile.
Fitch forecasts PBFH's EBITDA leverage to remain outside of
sensitivities through the medium term.
Fitch acknowledges the near-term benefits to company's liquidity
position and positive statements from management regarding reducing
gross debt once market conditions improve, but still views these
actions as a deviation from a conservative financial policy.
Martinez Refinery Fire: The February fire at the Martinez refinery
presents material operational challenges to PBFH. The company
projects that the refinery will once again be fully operational in
4Q25. The inability to capitalize on the summer driving season will
reduce PBFH's cash flow generation for 2025 relative to its
previous forecast.
Offsetting factors include preplanned turnaround downtime at
Martinez reducing overall impact and expected knock-on benefits to
margins at Torrance from reduced PADD V capacity. In addition,
Fitch expects PBF to benefit from business interruption insurance
but believe the actual amount is variable at this time.
Geographic Diversification: While PBFH's refinery operations span
four of the five PADD regions, offering valuable geographic
diversification, the company is more exposed to volatility than
other refiners due to its lack of diversification outside the
refining sector. PBFH's geographic diversification provides access
to various market dynamics and crack spread indices. However, the
focus on refining heightens its exposure to market downturns
compared to refiners with a broader mix of countercyclical
businesses that can better weather industry downcycles.
Weak Margins, Higher Cost Structure: PBFH's refineries have a
higher cost structure compared to peers, which has historically led
to underperformance and larger cash flow deficits during industry
downturns, notably in 2020-2021 and 2024. Margins declined
materially through 2024, but some improvement is expected in early
2025, although weaker-than-expected conditions could further stress
liquidity. Key factors affecting margins include potential refinery
closures on the West Coast, tariff uncertainties, the rise of
electric vehicles, and geopolitical conflicts.
Varied Capital Allocation: Fitch expects somewhat elevated capex in
2025 due to several turnarounds as well as the fire at the Martinez
refinery. PBF Energy is expected to maintain stable dividends,
supported by adequate funds generated by PBF Logistics. Management
has indicated that reducing leverage will be prioritized over
shareholder returns when the company observes improved cash
generation. There is potential for cash generated by PBF Logistics
to be used to reduce debt at PBF Holding.
Impact of Regulatory Obligations: Fitch considers PBFH's
obligations related to RINs and California's cap-and-trade program
to be manageable in the near term. While refiners generally pass
RIN costs to consumers, this becomes difficult when prices spike
alongside demand reductions. PBFH aims for a RIN turnover cycle of
two to four months and benefits from purchasing RINs from the St.
Bernard JV. California's cap-and-trade costs are also typically
passed to buyers. High barriers to entry and decreased supply in
California partially offset these regulatory costs.
Peer Analysis
PBFH has a nameplate throughput capacity of 1,023 mbbl/d, which
compares favorably to peers Delek US Holdings, Inc. (BB-/Stable)
with 302 mbbl/d and CVR Energy, Inc. (B+/Stable) with 207 mbbl/d.
PBFH's refining operations are geographically well diversified with
operations in PADDs I, II, III, and V. It lacks non-refining
diversification, although the company may receive distributions
from PBF Logistics LP and the St. Bernard JV under certain
conditions.
CVR's refining operation is concentrated in the mid-continent,
although this offset by niche market exposure and diversification
through its non-recourse fertilizer business. Delek has material
non-refining diversification with its logistics segment, but is
limited by its smaller size in more competitive refining markets.
PBFH has a higher cost structure than CVR, as indicated by lower
through-the-cycle EBITDA margins.
Investment-grade peers HF Sinclair Corporation (BBB-/Stable) with
678 mbbl/d, Marathon Petroleum Corporation (BBB/Stable) with 2,900
mbbl/d, and Valero Energy Corporation (BBB/Stable) with 2,600
mbbl/d all benefit from distinct credit profile advantages relative
to PBFH. Marathon Petroleum and Valero both operate at
significantly larger scales with higher levels of diversification
compared with PBFH.
While HF Sinclair's size lags that of PBFH, it benefits from
diversified non-refining businesses. PBFH has lower
through-the-cycle EBITDA margins relative to investment-grade
peers, which reflects the company's higher cost structure.
Key Assumptions
- West Texas Intermediate oil price of $65 in 2025, $60 in 2026,
$60 in 2027, and $57 over the long term;
- Gross refining margins recover to five-year average levels in
2026;
- Capex at approximately $925 million in 2025, declining
thereafter;
- PBF Energy dividend maintained through forecast;
- Turnarounds as described from company guidance.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Further reduction in liquidity, particularly if paired with a
deviation from a conservative financial policy;
- Through-the-cycle EBITDA leverage above 2.0x;
- Regulatory changes that decrease margins including RINs, tariffs
and other federal and state regulations.
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Increased diversification through scale or non-refining
businesses (i.e., retail, chemicals, etc.);
- Materially improved refining gross margins relative to peers;
- Through-the-cycle EBITDA leverage below 1.5x.
Liquidity and Debt Structure
PBFH had $515 million in cash on hand as of Dec. 31, 2024. Its
asset-based revolving credit facility of $3.5 billion is expected
to be undrawn following the close of the unsecured notes
transaction. Continued weakness in refining markets has the
potential to stress liquidity in the forecast period.
The company has senior unsecured notes that mature in 2028 and 2030
in addition to the new proposed senior unsecured notes. Its
revolving credit facility matures in 2028.
Issuer Profile
PBF Holding Company LLC owns and operates oil refineries and
related assets with a combined throughput capacity of 1,023,000
barrels per day. PBF Holding's refineries are geographically
diversified with refineries in PADD I, PADD II, PADD III, and PADD
V.
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
PBF Holding Company LLC has an ESG Relevance Score of '4' for
Exposure to Environmental Impacts due to the potential of
operational disruptions from extreme weather events, including
PBFH's exposure to hurricanes on the Gulf Coast through its
Chalmette refinery, which 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
----------- ------ -------- -----
PBF Holding Company LLC LT IDR BB Affirmed BB
senior unsecured LT BB New Rating RR4
senior unsecured LT BB Affirmed RR4 BB
senior secured LT BBB- Affirmed RR1 BBB-
PBF HOLDING: Moody's Rates New $750MM Senior Unsecured Notes 'Ba3'
------------------------------------------------------------------
Moody's Ratings assigned a Ba3 rating to PBF Holding Company LLC's
(PBF) proposed $750 million in senior unsecured notes due 2030.
PBF's other ratings, including its Ba2 Corporate Family Rating and
existing Ba3 senior unsecured notes ratings, and negative outlook
remain unchanged.
"PBF's proposed notes offering will increase liquidity as the
company navigates challenging operational and market conditions,"
commented Jonathan Teitel, a Moody's Ratings Vice President -
Senior Analyst. "While the offering meaningfully increases debt in
the near-term, Moody's expects this to be temporary as the company
focuses on deleveraging."
RATINGS RATIONALE
PBF's senior unsecured notes, rated Ba3, are one notch below the
CFR due to effective subordination to the senior secured revolver.
These notes are not guaranteed by PBF Energy Inc. (PBF Energy) or
PBF Logistics LP (PBF Logistics).
PBF's Ba2 CFR reflects the company's volatile cash flow and
leverage profile, balanced by its large refining scale and ability
to endure the cyclical refining sector. PBF benefits from a
geographically diversified footprint across the US, with six
refineries on the East Coast, Gulf Coast, Mid-Continent, and West
Coast, totaling more than one million barrels per day in throughput
capacity, providing economies of scale. However, the company faces
high regulatory risks and uncertainties at its two California
refineries. PBF's parent company, PBF Energy, also owns PBF
Logistics, which primarily operates midstream infrastructure
related to PBF's refineries. PBF Logistics, being debt-free, can
distribute cash to PBF Energy to support dividends or fund PBF's
needs. PBF Energy aims to achieve over $200 million in run-rate
cost savings by year-end, which would bolster EBITDA. Tariffs on
Canadian oil imports pose risks to feedstock sourcing, particularly
for PBF's Ohio refinery. However, PBF's coastal refineries can
access waterborne crude oil.
The fire at PBF's Martinez refinery on February 1, 2025, caused a
temporary shutdown. The company plans to restart the refinery in
two stages, with the first stage early in the second quarter and
the second stage by the fourth quarter of 2025. PBF expects
insurance will largely cover repair costs and that business
interruption insurance will significantly offset loss from downtime
due to the fire after April 3, 2025. PBF still has planned
turnaround for certain units at this refinery in 2025 that factor
into the timeline.
As of December 31, 2024, PBF had $515 million in cash, and a $3.5
billion ABL revolving credit facility with $2.4 billion of
borrowing base availability, $200 million in outstanding
borrowings, and $128 million in letters of credit.
The negative outlook reflects risks from elevated debt levels in a
challenging operating environment, expected cash flow pressures
from heavy turnaround activities in 2025, continued uncertainties
from the Martinez refinery fire, and tariffs on Canadian oil
imports. PBF's stated plan to prioritize deleveraging over share
repurchases during the challenging operating conditions going
forward is important for demonstrating more conservative financial
policies that support its existing rating.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Factors that could lead to a downgrade of the ratings include
further weakening in operating performance, deteriorating
liquidity, negative free cash flow, substantial sustained debt
increase, or more aggressive financial policies.
Factors that could lead to an upgrade of the ratings include
improved operating performance, including turnaround execution,
more consistent free cash flow generation, and maintaining lower
leverage through the cycle. More conservative financial policies,
including maintaining a cadence of shareholder returns that
sustains a large cash balance and strong liquidity through the
cycle, are important to supporting further credit improvement.
PBF, headquartered in Parsippany, NJ and a subsidiary of publicly
traded PBF Energy, owns and operates six refineries in the US. PBF
Energy also owns PBF Logistics.
The principal methodology used in this rating was Refining and
Marketing published in August 2021.
PELICAN INTERNATIONAL: Chapter 15 Case Summary
----------------------------------------------
Lead Debtor: Pelican International Inc.
21 Avenue Peronne
Montreal Quebec H3S 1X7
Canada
Business Description: Founded in 1968 and based in Laval, Quebec,
Canada, Pelican International is a leading
producer of water and nautical sports
products. The Company offers a wide range
of items, including kayaks, canoes, pedal
boats, stand-up paddleboards (SUP), fishing
boats, and other water sports accessories.
Pelican operates under several well-known
brands, including Pelican, Wilderness
Systems, Perception, Dagger, Mad River
Canoe, and Boardworks. In 2022, Pelican
strengthened its position in the outdoor
recreation market by acquiring GSI Outdoors.
Foreign Proceeding: Proceeding under the Companies'
Creditors Arrangement Act, R.S.C. 1985,
c. C-36 (as amended) before the Superior
Court of Quebec (Commercial Division)
Chapter 15 Petition Date: March 19, 2025
Court: United States Bankruptcy Court
District of South Carolina
Three affiliates that simultaneously filed voluntary petitions for
relief under Chapter 15 of the Bankruptcy Code:
Debtor Case No.
------ --------
Pelican International Inc. (Lead Case) 25-01030
Pelican US Topco LLC 25-01031
Confluence Outdoor Inc. 25-01029
Judge: Hon. Elisabetta G.M. Gasparini
Foreign Representative: FTI Consulting Canada Inc.
1000 Sherbrooke West, Suite 915
Montreal, Quebec H3A 3GA
Canada
Foreign
Representative's
Counsel: Mary M. Caskey, Esq.
Stanley H. McGuffin, Esq.
HAYNSWORTH SINKLER BOYD, P.A.
1201 Main Street, 22nd Floor
Columbia, SC 29201
Tel: (803) 779-3080
Email: mary.caskey@hsblawfirm.com
mcaskey@hsblawfirm.com
smcguffin@hsblawfirm.com
- and -
David M. Fournier, Esq.
Evelyn J. Meltzer, Esq.
Kenneth A. Listwak, Esq.
TROUTMAN PEPPER LOCKE LLP
Hercules Plaza
1313 N. Market Street, Suite 1000
Wilmington, DE 19801
Tel: (302) 777-6500
Email: david.fournier@troutman.com
evelyn.meltzer@troutman.com
ken.listwak@troutman.com
Estimated Assets: Unknown
Estimated Debt: Unknown
Full-text copies of the Chapter 15 petitions are available for free
on PacerMonitor at:
https://www.pacermonitor.com/view/EEEU7PA/Pelican_International_Inc__scbke-25-01030__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/ZUPM76Y/Confluence_Outdoor_Inc__scbke-25-01029__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/IECHHIY/Pelican_US_Topco_LLC__scbke-25-01031__0001.0.pdf?mcid=tGE4TAMA
PERFORMANCE MOBILE: Seeks Subchapter V Bankruptcy in Colorado
-------------------------------------------------------------
On March 13, 2025, Performance Mobile Care LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Colorado. 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 Performance Mobile Care LLC
Performance Mobile Care LLC is a vehicle detailing company
specializing in providing mobile detailing services for trucks.
Performance Mobile Care LLC sought relief under Subchapter V o
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No.
25-11281) on March 13, 2025. In its petition, the Debtor reports
estimated assets between $100,000 and $500,000 and estimated
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Kimberley H. Tyson handles the case.
The Debtor is represented by:
Jeffrey A. Weinman, Esq.
ALLEN VELLONE WOLF HELFRICH & FACTOR, P.C.
1600 Stout Street 1900
Denver, CO 80202
Tel: 303-534-4499
Email: jweinman@allen-vellone.com
PHB 2023: Seeks to Hire Spain & Gillon as Bankruptcy Counsel
------------------------------------------------------------
PHB 2023, LLC seeks approval from the U.S. Bankruptcy Court for the
Northern District of Alabama to employ Spain & Gillon, LLC as
counsel.
The firm will provide these services:
(a) give the Debtor legal advice with respect to its duties in
either the continued operation of its business and management of
its assets or sale thereof;
(b) take the necessary action required to reject or accept the
executory contracts of the Debtor;
(c) prepare on behalf of the Debtor necessary legal
documents;
(d) perform any and all legal services on behalf of the Debtor
arising out of or connected with the bankruptcy case; and
(e) perform any and all other legal services for the Debtor.
The firm's counsel and staff will be paid at these hourly rates:
Stephen Leara, Attorney $515
Fred Garfield, Attorney $400
Paralegal $195
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Leara disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Stephen Leara, Esq.
Spain & Gillon, LLC
505 20th Street North, Suite 1200
Birmingham, AL 35203
Telephone: (205) 328-4100
Facsimile: (205) 324-8866
Email: sleara@spain-gillon.com
About PHB 2023 LLC
PHB 2023 LLC is part of the residential building construction
industry.
PHB 2023 LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ala. Case No. 24-03678) on December 5, 2024. In
the petition filed by Misty M. Glass, manager, the Debtor reports
total assets of $16,265,505 and total liabilities of $16,265,517.
Honorable Bankruptcy Judge Tamara O. Mitchell handles the case.
Stephen P. Leara, Esq., at Spain & Gillon, LLC serves as the
Debtor's counsel.
PHCV4 HOMES: To Sell 15 Single-Family Homes to Chips-Foxwood Farms
------------------------------------------------------------------
PHCV4 Homes LLC seeks permission from the U.S. Bankruptcy Court for
the Northern District of Alabama, Southern Division, to sell real
property, free and clear of all liens and encumbrances.
The Debtor proposes to sell its interest in certain real estate
consisting of 15 single-family homes in the community known as
Foxwood Farms, in the municipality of Decatur, Morgan County,
Alabama, with the total purchase price of $1,350,000.
The Debtor seeks to sell the Property free and clear of any and all
mortgages, liens, interests and/or other encumbrances, excepting
that Corevest American Finance Leader LLC's lien rights
specifically and fully attached to all proceeds of the sale.
All liens, mortgages, or other interests shall attach to the
proceeds of the sale to the extent properly allowed. However, no
proceeds of the sale shall be paid to Debtor or any person or party
related to the Debtor, no other creditors or lienholders shall
receive the net proceeds of the sale after all closing costs, tax
prorations, and other routine and necessary sale related
disbursements are paid of the closing attorney. All net sales
proceeds shall be paid directly CoreVest at closing free and clear
of all liens, interests, and encumbrances. If the sale does not
close on or before May 22, 2025, then it is null and void and the
sale cannot thereafter be completed without further approval from
the Court.
The Debtor enters a Contract with Chips-Foxwood Farms LLC to
purchase the Property.
The Debtor asserts that the total sales price for the Assets
represents the fair market value of the Property. The Purchaser has
already obtained or will obtain financing, and the sales are
contemplated to be closed forthwith after approval from the Court.
About PHCV4 Homes LLC
PHCV4 Homes LLC is part of the residential building construction
industry.
PHCV4 Homes LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-02751) on September
10, 2024. In the petition filed by Misty M. Glass, as manager, the
Debtor reports estimated assets and liabilities between $10 million
and $50 million each.
The Honorable Bankruptcy Judge Tamara O. Mitchell presides over the
case.
The Debtor is represented by Frederick M. Garfield, Esq., at SPAIN
& GILLON, LLC.
PHVC4 HOMES: To Sell 19 Single-Family Homes to CHIPS-Amberley
-------------------------------------------------------------
PHCV4 Homes LLC seeks permission from the U.S. Bankruptcy Court for
the Northern District of Alabama, Southern Division, to sell Real
Property, free and clear of all liens and encumbrances.
The Debtor proposes to sell its interests in certain real estate
consisting of 19 single-family homes in the community known as
Amberley, in the municipality of Robertsdale, Baldwin County,
Alabama, in a private sale with the total purchase price of
$1,925,000.
Thr Debtor wants to sell the property free and clear of any and all
mortgages, liens, interests, and/or other encumbrances, excepting
that CoreVest American Finance Lender LLC's lien rights
specifically and fully attached to all proceeds of the sale.
Receipt of the net sales proceeds will not constitute full payoff
as to any loans or obligations owed by the Debtor to CoreVest,
however, Corevest may apply the sale proceeds to reduce amounts
owed by the Debtor to CoreVest.
The Debtor enters a contract with CHIPS-Amberley LLC to purchase
the Property.
The Debtor asserts that the total sales price of the Property
represents the fair market value of the Property. The Purchaser
has obtained or will obtain financing, and the sales are
contemplated to be closed forthwith after approval from the Court.
About PHCV4 Homes LLC
PHCV4 Homes LLC is part of the residential building construction
industry.
PHCV4 Homes LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-02751) on September
10, 2024. In the petition filed by Misty M. Glass, as manager, the
Debtor reports estimated assets and liabilities between $10 million
and $50 million each.
The Honorable Bankruptcy Judge Tamara O. Mitchell presides over the
case.
The Debtor is represented by Frederick M. Garfield, Esq., at SPAIN
& GILLON, LLC.
PICCARD PETS: Plan Exclusivity Period Extended to March 31
----------------------------------------------------------
Judge Jacob A. Brown of the U.S. Bankruptcy Court for the Middle
District of Florida extended Piccard Pets Supplies Corp.'s
exclusive periods to file a plan of reorganization and disclosure
statement to March 31, 2025.
As shared by Troubled Company Reporter, the Debtor claims that it
is currently seeking to sell its primary asset, the real property
located 5521 Blanding Blvd, Jacksonville, FL per the terms of the
Motion to Sell Property Free and Clear of Liens filed October 28,
2024. The subject sale was originally set to close on March 3,
2025, however, the sale has been delayed to mid-March.
The Debtor notes that the proposed sale would liquidate the
Debtor's primary asset and payoff one of the Debtor's largest
secured creditors which would impact its available resources to
fund its plan of reorganization and make payments to other
creditors.
The Debtor asserts that extending the exclusivity period will not
harm other creditors or the estate. The Debtor has continued to
operate its business in a manner that benefits the estate, and
creditors will not be prejudiced by an extension of the exclusivity
period.
Piccard Pets Supplies Corp. is represented by:
Thomas C. Adam, Esq.
ADAM LAW GROUP, P.A.
2258 Riverside Avenue
Jacksonville, FL 32202
(904) 329-7249 telephone
Email: tadam@adamlawgroup.com
About Piccard Pets Supplies
Piccard Pets Supplies Corp., a company in Jacksonville, Fla.,
offers pet supplies and medications.
Piccard Pets Supplies sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02434) on Aug. 15,
2024, with total assets of $927,465 and total liabilities of
$5,323,839. Marlon Martinez, chief executive officer, signed the
petition.
Judge Henry W. Van Eck oversees the case.
The Debtor is represented by Thomas Adam, Esq., at Adam Law Group,
PA.
POPELINO'S TRANSPORTATION: Seeks Chapter 11 Bankruptcy
------------------------------------------------------
On March 18, 2025, Popelino's Transportation Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Central District
of California. According to court filing, the
Debtor reports $8,329,194 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Popelino's Transportation Inc.
Popelino's Transportation Inc. is a Riverside, California-based
company that has been offering green waste hauling and
transportation services since 2005. Additionally, the Company
recycles green waste at its facility to generate compost, mulch,
and woodchips for landscaping.
Popelino's Transportation Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.: 25-11628) on
March 18, 2025. In its petition, the Debtor reports total assets of
$3,318,612 and total liabilities of $8,329,194.
Honorable Bankruptcy Judge Mark D. Houle handles the case.
The Debtor is represented by:
Todd Turoci, Esq.
THE TUROCI FIRM
3845 Tenth Street
Riverside, CA 92501
Tel: (888) 332-8362
Email: mail@theturocifirm.com
POTTSVILLE OPERATIONS: Plan Exclusivity Period Extended to April 13
-------------------------------------------------------------------
Judge Jeffery A. Deller of the U.S. Bankruptcy Court for the
Western District of Pennsylvania extended Pottsville Operations,
LLC and affiliates' exclusive periods to file a plan of
reorganization and obtain acceptance thereof to April 13 and June
12, 2025, respectively.
As shared by Troubled Company Reporter, the Pottsville Debtors
explain that they have been focused on the Sale and have allocated
its professional resources towards the Closing. The Pottsville
Debtors and other interested parties, including the Committee, are
still in the process of discussing the terms of a chapter 11 plan
and need additional time beyond the Initial Exclusive Filing Period
to file the plan.
The Pottsville Debtors claim that their requested extension of the
Exclusive Periods is intended to allow the Pottsville Debtors to
continue to work cooperatively with key parties toward the goal of
confirming and implementing a chapter 11 plan in the most cost
efficient manner possible. Extending the Exclusive Periods will
benefit creditors by avoiding the drain on estate assets attendant
to a competing chapter 11 plan.
The Pottsville Debtors assert that they have been paying their
undisputed post-petition bills. The Pottsville Debtors are current
on their payments to the U.S. Trustee on account of quarterly fees.
Moreover, the Pottsville Debtors have sufficient liquidity to
continue to meet their post-petition obligations as they come due.
Thus, the requested extension of the Exclusive Periods will not
jeopardize the rights of creditors and other parties who do
business with the Pottsville Debtors during these Chapter 11
Cases.
The Debtors' Counsel:
Elizabeth A. Green, Esq.
Andrew V. Layden, Esq.
BAKER & HOSTETLER LLP
SunTrust Center, Suite 2300
200 South Orange Avenue
Orlando, Florida 32801-3432
Tel: (407) 540-7920
Fax: (407) 841-0168
E-mail: egreen@bakerlaw.com
E-mail: alayden@bakerlaw.com
The Debtors' Local Counsel:
Daniel R. Schimizzi, Esq.
Mark A. Lindsay, Esq.
Harry A. Readshaw, Esq.
Jordan N. Kelly, Esq.
Sarah E. Wenrich, Esq.
RAINES FELDMAN LITTRELL, LLP
11 Stanwix Street, Suite 1100
Pittsburgh, PA 15222
Tel: 412-899-6474
E-mail: dschimizzi@raineslaw.com
mlindsay@raineslaw.com
hreadshaw@raineslaw.com
jkelly@raineslaw.com
swenrich@raineslaw.com
About Pottsville Operations
Pottsville Operations LLC and its affiliates own and operates six
skilled nursing facilities in Pennsylvania. Collectively,
Pottsville has 925 beds across the six facilities, and 759
residents currently at the Facilities as of the Petition Date.
Pottsville acquired the facilities in May of 2021.
Pottsville Operations and its 10 affiliates sought relief under
sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. Pa. Lead Case No. 24-70418) on Oct. 15, 2024. In the petition
signed by Neil Luria, as chief restructuring officer, Pottsville
reports estimated assets between $1 million and $10 million and
estimated liabilities between $10 million and $50 million.
Bankruptcy Judge Jeffery A Deller handles the cases.
The Debtors tapped Baker & Hostetler, LLP as general bankruptcy
counsel; and RAaines Feldman Littrell, LLP as local counsel. SOLIC
Capital Advisors LLC is serving as financial advisor, and Solic's
Neil Luria has been tapped as CRO of the Debtors. Stretto, Inc. is
the claims agent.
Margaret Barajas is the patient care ombudsman appointed in the
Debtors' cases.
PREMIER TILLAGE: Seeks Chapter 11 Bankruptcy in Kansas
------------------------------------------------------
On March 18, 2025, Premier Tillage Inc. filed Chapter 11 protection
in the U.S. Bankruptcy Court for the District of Kansas. According
to court filing, the Debtor reports $9,284,642 in debt owed to
50 and 99 creditors. The petition states funds will not be
available to unsecured creditors.
About Premier Tillage Inc.
Premier Tillage Inc. is a family-owned company based in Kansas,
specializing in products and services for both no-till and
conventional tillage farming. The Company's flagship product, the
Minimizer blade plow, enhances efficiency by reducing weeds and
boosting profits. In addition, the Company offers replacement parts
and other farming equipment, such as stubble treaders and sweep
plows.
Premier Tillage Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 25-20314) on March 18,
2025. In its petition, the Debtor reports total assets of
$5,285,139 and total liabilities of $9,284,642.
The Debtor is represented by:
Neil Sader, Esq.
SADER LAW FIRM, LLC
2345 Grand Blvd., Suite 2150
Kansas City MO 64108
Tel: 816-561-1818
E-mail: nsader@saderlawfirm.com
PROSOURCE MACHINERY: Hires Wadsworth Garber Warner as Counsel
-------------------------------------------------------------
ProSource Machinery, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to employ Wadsworth Garber
Warner Conrardy, P.C. as counsel.
The firm's services include:
a. preparation on behalf of Debtor of all necessary reports,
orders and other legal papers required in this chapter 11
proceeding;
b. performance of all legal services for Debtor as
debtor-in-possession which may become necessary; and
c. representation of the Debtor in any litigation whether in
state or federal court(s).
The firm's counsel and staff will be paid at these hourly rates:
David Wadsworth, Attorney $500
Aaron Garber, Attorney $500
David Warner, Attorney $425
Aaron Conrardy, Attorney $425
Lindsay Riley, Attorney $325
Hallie S. Cooper, Attorney $225
Paralegals $125
Mr. Wadsworth disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
David V. Wadsworth, Esq.
Wadsworth Garber Warner Conrardy, P.C.
2580 W. Main St., Ste. 200
Littleton, CO 80120
Telephone: (303) 296-1999
Email: dwadsworth@wgwc-law.com
About ProSource Machinery
ProSource Machinery, LLC sells and rents off-highway construction
and mining equipment in Montana and Colorado.
ProSource filed Chapter 11 petition (Bankr. D. Colo. Case No.
25-11010) on February 28, 2025, listing up to $10 million in assets
and up to $50 million in liabilities. Derek Dicks, managing member
of ProSource, signed the petition.
Judge Kimberley H. Tyson oversees the case.
David J. Warner, Esq., at Wadsworth Garber Warner Conrardy, P.C.,
represents the Debtor as legal counsel.
PROSOURCE MACHINERY: Seeks to Hire Neil Goldstein as CRO
--------------------------------------------------------
ProSource Machinery, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to hire Neil Goldstein, founder
of Elementary Business, Inc., as chief restructuring officer.
The firm will render these services:
a. review and analyze the Debtor's business, operations,
assets, financial conditions, business plan, strategy, and
operating forecasts;
b. assist with the management of the Debtor's business,
including overseeing general accounting, financial reporting, and
cash management;
c. provide guidance and leadership in navigating the complex
bankruptcy process;
d. work with bankruptcy counsel to assist the Debtor in its
dealings with the Debtor's primary lenders and other creditors;
e. draft cash collateral budgets and reports, monthly
operating reports, and financial statements and projections for the
restructuring plan;
f. formulate with the Debtor's bankruptcy counsel a strategic
plan for reorganization of the Debtor's business in order to
maximize the value of the business and assets consistent with the
duties of a debtor-in-possession under the United States Bankruptcy
Code; and
g. perform such other tasks as requested by the Debtor that
are consistent with the foregoing duties.
Mr. Goldstein will receive an hourly fee of $325.
Mr. Goldstein assured the court that he is a "disinterested person"
as defined in 11 U.S.C. Sec. 101(14).
Mr. Goldstein can be reached through:
Neil Goldstein
Elementary Business Inc.
DFW Metroplex
Tel: (940) 808-9451
Email: neil@elementarybusiness.com
About ProSource Machinery
ProSource Machinery, LLC sells and rents off-highway construction
and mining equipment in Montana and Colorado.
ProSource filed Chapter 11 petition (Bankr. D. Colo. Case No.
25-11010) on February 28, 2025, listing up to $10 million in assets
and up to $50 million in liabilities. Derek Dicks, managing member
of ProSource, signed the petition.
Judge Kimberley H. Tyson oversees the case.
David J. Warner, Esq., at Wadsworth Garber Warner Conrardy, P.C.,
represents the Debtor as legal counsel.
QXC COMMUNICATIONS: Taps Shraiberg Page as Bankruptcy Co-Counsel
----------------------------------------------------------------
QXC Communications, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ Shraiberg Page
P.A. as its general bankruptcy co-counsel.
The firm will render these services:
(a) advise the Debtor generally regarding matters of
bankruptcy law in connection with this case;
(b) advise the Debtor of the requirements of the Bankruptcy
Code, the Federal Rules of Bankruptcy Procedure, applicable
bankruptcy rules pertaining to the administration of the case and
U.S. Trustee Guidelines related to the daily operation of its
business and administration of the estate;
(c) represent the Debtor in all proceedings before this
court;
(d) prepare and review legal documents arising in this case;
(e) negotiate with creditors, prepare and seek confirmation of
a plan of reorganization and related documents, and assist the
Debtor with implementation of any plan; and
(f) perform all other legal services for the Debtor, which may
be necessary herein.
The firm will be paid at these hourly rates:
John Page, Attorney $650
Partners $500
Associates $400
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a total retainer of $100,000, plus the filing fee
of $1,738.
Mr. Page disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
John Page, Esq.
Shraiberg Page, PA
2385 NW Executive Center Dr., Ste. 300
Boca Raton, FL 33431
Telephone: (561) 443-0800
Facsimile: (561) 998-0047
Email: jpage@slp.law
About QXC Communications Inc.
QXC Communications, Inc. specializes in designing and deploying
fiber-optic networks that offer high-speed internet, WiFi, HD TV,
and VoIP voice services. It caters to a range of clients,
residential communities, military bases, businesses, and outdoor
venues. The company uses AON (Active Optical Network) technology to
ensure the highest quality connectivity with minimal
interruptions.
QXC Communications sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12256) on February
28, 2025, listing $11,677,760 in assets and $13,912,001 in
liabilities. John Von Stein, chief executive officer, signed the
petition.
Judge Mindy A. Mora oversees the case.
John E. Page, Esq., at Shraiberg Page PA, represents the Debtor as
legal counsel.
READYMAX INC: Unsecureds to Get 1 Cent on Dollar in Plan
--------------------------------------------------------
ReadyMax, Inc., submitted a Second Amended Plan of Reorganization
for Small Business dated February 28, 2025.
The Debtor designs and manufactures personal safety products, such
as eye and hearing protection. Debtor also has a product line
related to fly fishing under the trade name StreamWorks, which
Debtor is currently trying to sell.
The Debtor has operations and warehousing in Nevada, but
manufactures its products in China and Taiwan. Debtor was
originally incorporated in 2003 as StreamWorks, Inc., but later
changed its name to StreamWorks Products Group, Inc. and again
later changed its name to ReadyMax, Inc.
The Debtor suffered major supply chain issues during the COVID-19
pandemic that resulted in lost revenues. Debtor has numerous
patented safety products with strong customer support, but needs
operating capital to replenish inventory to fulfill demand and
expand product awareness. Debtor's overall debt load became
unmanageable making it necessary for Debtor to pursue the formal
restructuring of its liabilities.
The Debtor will fund the Plan by contributing his "Disposable
Income" for a period of 60-months. The Plan Proponent's financial
projections show Debtor will have projected average disposable
income of $1,800 per month, which will be disbursed to fund the
Plan on a quarterly basis. The final Plan payment is expected to be
paid on December 31, 2030.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cash flow from operations of Debtor's businesses.
Non-priority unsecured creditors holding allowed claims in Debtor's
case will receive distributions, which the proponent of this Plan
has valued at 1 cent on the dollar. This Plan also provides for the
payment of administrative and priority claims.
Class 6 consists of Non-priority General Unsecured Creditors. Each
holder of a Class 6 non-priority unsecured Allowed Claim shall
receive their pro rata share of Debtor's Disposable Income, after
the payment in full of Administrative Claims and the Class 6
priority wage claim, through the end of the Plan Term (the "Class 6
Plan Dividend"). Any portion of a Class 6 non-priority general
unsecured claim in excess of the Class 6 Plan Dividend shall be
discharged in accordance with Article 9 of this Plan. This Class is
impaired.
The Debtor will use its Disposable Income during the Plan Term,
cash on hand, and profits from the operation of its business to
fund the Plan. Commencing on the latter of Effective Date of the
Plan or January 10, 2026, and continuing for a total period of 60
months, Debtor's Disposable Income will be disbursed on a quarterly
basis and first used to fund Debtor's required Plan payments to
allowed administrative expense claims, and then to priority tax
claims, then to Class 5 priority wage claims, and then to Class 6
non-priority general unsecured creditors.
A full-text copy of the Second Amended Plan dated February 28, 2025
is available at https://urlcurt.com/u?l=V2EEbG from
PacerMonitor.com at no charge.
Attorney for the Plan Proponent:
Kevin A. Darby, Esq.
Darby Law Practice, Ltd.
499 W. Plumb Lane, Suite 202
Reno, NV 89509
Telephone: (775) 322-1237
Facsimile: (775) 996-7290
Email: kevin@darbylawpractice.com
About ReadyMax Inc.
ReadyMax, Inc., designs and manufactures various personal safety
products, such earplugs, protective eye-gear and medical safety
devices.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 23-50969) on Dec. 22,
2023, with $498,913 in assets and $3,462,957 in liabilities. James
E. Duffy, president, signed the petition.
Judge Hilary L. Barnes oversees the case.
Kevin A. Darby, Esq., at Darby Law Practice, Ltd., is the Debtor's
bankruptcy counsel.
RIVERSIDE MILITARY: Fitch Cuts Rating on 2017 Refunding Bonds to D
------------------------------------------------------------------
Fitch Ratings has downgraded approximately $48 million of the
Gainesville & Hall County Development Authority, GA series 2017
refunding revenue bonds, issued on behalf of Riverside Military
Academy (RMA), to 'D' from 'C'.
Additionally, Fitch has downgraded RMA's Issuer Default Rating
(IDR) to 'RD' (restricted default) from 'C'.
Entity/Debt Rating Prior
----------- ------ -----
Riverside Military
Academy (GA) LT IDR RD Downgrade C
Riverside Military
Academy (GA) /General
Revenues/1 LT LT D Downgrade C
SECURITY
The bonds are an absolute and unconditional obligation of RMA,
secured by a first lien on the academy's campus and a cash-funded
debt service reserve fund, equal to $2,472,793 as of March 1,
2025.
KEY RATING DRIVERS
The downgrade to 'D' reflects RMA's failure to meet its scheduled
principal obligation under the loan agreement on March 1, 2025. The
trustee posted a notice to the Electronic Municipal Market Access
platform on Feb. 28, 2025, stating that the principal payment would
not be made due to the bondholder's decision to defer drawing funds
from the debt service reserve fund, although the interest payment
would be covered using funds from the reserve. This constituted a
default under Fitch's rating criteria and led to the downgrade of
both the bonds and RMA's IDR. The 'RD' IDR reflects that RMA is a
going concern and remains in operation.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade of the bonds is not possible as the rating is at the
lowest possible level.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Demonstrated ability and intent to make timely payments on all
debt service obligations for the series 2017 bonds;
- Execution of a realistic financial and operational restructuring
plan that does not involve deferral of principal or interest
payments of the series 2017 bonds;
- Successful strategic asset sales or philanthropic efforts that
generate sufficient cash resources to insulate bond payments
against operational stress.
CREDIT PROFILE
Founded in 1907, Riverside Military Academy (RMA) is a
military-style college preparatory school for boys, offering
boarding and day school programs for grades 6-12. The academy is
located on a 206-acre campus in Gainesville, Georgia, about 60
miles northeast of Atlanta. The academy holds dual accreditation
from the Southern Association of Independent Schools and the
Southern Association of Colleges and Schools, which was renewed in
2017.
The Riverside Military Academy Board of Trustees appointed Dr.
Robert Brittain "Britt" Daniel, J.D. as president, effective July
1, 2024.
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.
ROMAN BUILDERS: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Roman Builders LLC
1990 NW 29 Street
Oakland Park, FL 33311
Business Description: Roman Builders is a South Florida company
that specializes in waterproofing services
for both commercial and residential
properties. The Company offers various
solutions, including the installation of
waterproofing membranes, concrete repair,
and leak prevention through advanced methods
like resin injection. It also provides
maintenance and protection services for
concrete structures, such as parking
garages, balconies, and walkways.
Chapter 11 Petition Date: March 19, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 25-12914
Judge: Hon. Scott M Grossman
Debtor's Counsel: Susan D Lasky, Esq.
SUSAN D. LASKY, PA
320 SE 18 Street
Fort Lauderdale, FL 33316
Tel: 954-400-7474
E-mail: Jessica@SueLasky.com
Total Assets: $821,063
Total Liabilities: $1,015,126
The petition was signed by Lance DiBona as owner.
A complete copy of the petition, which contains a list of the
Debtor's 20 largest unsecured creditors, can be accessed for free
on PacerMonitor at:
https://www.pacermonitor.com/view/5C5SDCA/Roman_Builders_LLC__flsbke-25-12914__0001.0.pdf?mcid=tGE4TAMA
ROTM LOFTS: Gets Final Approval to Use Cash Collateral
------------------------------------------------------
The ROTM Lofts, LLC received final approval from the U.S.
Bankruptcy Court for the District of Maine to use its cash
collateral to pay its operating expenses.
The final order authorized the company to use cash collateral to
pay ordinary and necessary business expenses as set forth in its
budget, with a 115% variance allowed.
ROTM Lofts was ordered to provide protection to Accelerated Capital
Partners, LLC and other pre-bankruptcy lienholders in the form of
replacement liens on all assets of the company and its estate, with
the same priority as their pre-bankruptcy liens.
ROTM is prohibited from making payments to Northeast Asset
Management or any other insider of the company for maintenance and
repairs.
If ROTM seeks authority to use cash collateral after May 30, the
company must file a new budget by May 19. If necessary, the court
will hold a hearing on May 29 to consider the request.
About The ROTM Lofts
The ROTM Lofts, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Maine Case No. 24-10257) on November 21,
2024, listing up to $10 million in both assets and liabilities.
Geoffrey Houghton, manager and authorized party, signed the
petition.
Judge Michael A. Fagone oversees the case.
The Debtor is represented by:
Adam R. Prescott, Esq.
Bernstein Shur Sawyer & Nelson, PA
Tel: 207-228-7145
Email: aprescott@bernsteinshur.com
RUNWAY TOWING: Seeks to Tap Shenwick & Associates as Legal Counsel
------------------------------------------------------------------
Runway Towing Corp. seeks approval from the U.S. Bankruptcy Court
for the Easter District of New York to employ Shenwick & Associates
as its counsel.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties in
the continued management and operation of its businesses and
property;
(b) advise and consult the conduct of this Chapter 11 case;
(c) take all necessary actions to protect and preserve the
Debtor's estate;
(d) prepare pleadings in connection with this Chapter 11
case;
(e) advise the Debtor in connection with any potential sale of
assets;
(f) appear before the bankruptcy court and any appellate
courts to represent the interests of the Debtor's estate;
(g) advise the Debtor regarding tax matters;
(h) take any necessary action on behalf of the Debtor to
negotiate, prepare, and obtain approval of a disclosure statement
and confirmation of a Chapter 11 plan and all documents related
thereto; and
(i) perform all other necessary legal services for the Debtor
in connection with the prosecution of this Chapter 11 case.
The firm will be paid at these hourly rates:
James Shenwick, Attorney $750
Associates $600
Paralegals $250
In addition, the firm will seek reimbursement for expenses
incurred.
The firm also received an initial retainer of $10,000 and $31,738
on February 26, 2025 and February 28, 2025, respectively.
Mr. Shenwick disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
James H. Shenwick, Esq.
Shenwick & Associates
116 Plymouth Drive
Scarsdale, NY 10583
Telephone: (917) 363-3391
Email: jshenwick@gmail.com
About Runway Towing Corp.
Runway Towing Corp. filed Chapter 11 petition (Bankr. S.D.N.Y. Case
No. 25-11764) on February 28, 2025, listing under $1 million in
both assets and liabilities.
James H. Shenwick, Esq., at Shenwick & Associates serves as the
Debtor's counsel.
SALUS MEDICAL: Trustee Seeks to Hire Michael W. Carmel as Counsel
-----------------------------------------------------------------
Michael Carmel, the trustee appointed in the Chapter 11 case of
Salus Medical, LLC, seeks approval from the U.S. Bankruptcy Court
for the District of Arizona to employ the law firm of Michael W.
Carmel, Ltd. as his counsel.
The firm will provide these services:
(a) give the trustee legal advice with respect to his powers
and duties in these proceedings;
(b) prepare on behalf of the trustee the necessary legal
papers; and
(c) perform all other legal services for the trustee which may
be necessary herein.
The firm will be paid at these hourly rates:
Michael Carmel, Attorney $700
Paralegals $135
Mr. Carmel disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Michael W. Carmel, Esq.
Michael W. Carmel, Ltd.
80 East Colombus Avenue
Phoenix, AZ 85012
Telephone: (602) 264-4965
Facsimile: (602) 277-0144
Email: Michael@mcarmellaw.com
About Salus Medical
Salus Medical, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
24-08193) on September 27, 2024, listing $500,000 to $1 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by Hernan H. Alvarez as manager.
M. Preston Gardner, Esq., at Davis Miles McGuire Gardner, PLLC
represents the Debtor as legal counsel.
Michael Carmel was appointed as trustee in this Chapter 11. He
tapped the law firm of Michael W. Carmel, Ltd. as his counsel.
SANTA PAULA HAY: Seeks Chapter 11 Bankruptcy in California
----------------------------------------------------------
On March 12, 2025, Santa Paula Hay & Grain and Ranches filed
Chapter 11 protection in the U.S. Bankruptcy Court for the Central
District of California. According to court filing, the
Debtor reports between $10 million to $50 million in debt owed
to 50 and 99 creditors. The petition states funds will be available
to unsecured creditors.
About Santa Paula Hay & Grain and Ranches
Santa Paula Hay & Grain and Ranches specializes in providing a
variety of hay and grain products to meet the needs of farmers and
animal owners. The Company offers high-quality feed options for
livestock and pets.
Santa Paula Hay & Grain and Ranches sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10314) on
March 12, 2025. In its petition, the Debtor reports estimated
assets between $100 million and $500 million and between $10
million and $50 million.
Honorable Bankruptcy Judge Ronald A. Clifford III handles the
case.
The Debtor is represented by:
Reed Olmstead, Esq.
LAW OFFICES OF REED H. OLMSTEAD
5142 Hollister Ave #171
Santa Barbara, CA 93111
Tel: (805) 963-9111
Email: reed@olmstead.law
SC HEALTHCARE: Seeks to Extend Plan Exclusivity to September 22
---------------------------------------------------------------
SC Healthcare Holding, LLC, and affiliates asked the U.S.
Bankruptcy Court for the District of Delaware to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to September 22 and November 20, 2025,
respectively.
The Debtors explain that since commencing these Chapter 11 Cases,
the sale processes required significant effort from the companies
and their advisors. Those efforts required multi-party negations
with the Debtors' lenders (including prepetition lenders and the
debtor-in-possession lender (the "DIP Lender")), the Committee,
U.S. Trustee, and other interested parties. Obtaining approval and
closing of the Sales and completing the other tasks attendant to
operating during chapter 11 required the full attention of the
Debtors, their employees, and their professional advisors for the
first several months of these Chapter 11 Cases.
Since having closed on the Sales, the Debtors' attention has been
focused on negotiating a consensual exit from these Chapter 11
Cases, most recently demonstrated through the consensual order
entered resolving Column's request to convert these Chapter 11
Cases.
The Debtors submit that the complexity of these Chapter 11 Cases
warrants the further extension of the Exclusive Periods so that the
Debtors may focus their efforts on finalizing negotiations and
ultimately prosecuting a viable plan that has the support of, among
other parties, the Debtors' prepetition lenders, including Column,
the Committee, the U.S. Trustee and other key stakeholders.
The Debtors claim that a further extension of the Exclusive Periods
as requested herein will allow the companies to continue
negotiating and finalizing a path forward for these Chapter 11
Cases, while continuing to devote the necessary resources towards
maximizing the value of the Debtors' estates. Accordingly, the
Debtors submit that the current progress in these Chapter 11 Cases
and the remaining tasks justify the requested extension of the
Exclusive Periods.
Importantly, the Debtors are not seeking the extension of the
Exclusive Periods to delay administration of these Chapter 11 Cases
or to exert pressure on their creditors but, rather, to continue
the orderly, efficient, and cost-effective chapter 11 process.
Indeed, the Debtors are in constant communication with Column and
the Committee, among others, about the terms and construct of a
chapter 11 plan. Thus, the Debtors submit that this factor also
weighs in favor of further extending the Exclusive Periods.
In addition, termination of the Exclusive Periods would adversely
impact the administration of these Chapter 11 Cases. If the Court
were to deny the Debtors' request for further extension of the
Exclusive Periods, upon the expiration of the Exclusive Filing
Period, any party in interest would be free to propose a chapter 11
plan for the Debtors and solicit acceptances thereof. Such a ruling
could foster a chaotic environment for the Debtors and their
estates, delay the administration of these Chapter 11 Cases, and
otherwise impair the Debtors' ability to prosecute these Chapter 11
Cases without any corresponding benefit to the Debtors' estates and
creditors.
Counsel for the Debtors:
Andrew L. Magaziner, Esq.
Shella Borovinskaya, Esq.
Carol E. Cox, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, Delaware 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
E-mail: amagaziner@ycst.com
sborovinskaya@ycst.com
ccox@ycst.com
- and -
Daniel J. McGuire, Esq.
Gregory M. Gartland, Esq.
WINSTON & STRAWN LLP
35 W. Wacker Drive
Chicago, IL 60601
Tel: (713) 651-2600
Fax: (312) 558-5700
Tel: (312) 558-5600
E-mail: dmcguire@winston.com
E-mail: ggartland@winston.com
- and -
Carrie V. Hardman, Esq.
200 Park Avenue
New York, New York 10166
Tel: (212) 294-6700
Fax: (212) 294-4700
E-mail: chardman@winston.com
About Petersen Health Care Inc.
SC Healthcare Holding, LLC, et al., comprise one of the largest
nursing home operators in the United States and work in partnership
with physicians, skilled nurses, and other health care providers in
order to provide various healthcare and rehabilitation services for
elderly citizens in Illinois, Missouri, and Iowa.
SC Healthcare Holding, LLC, and its affiliates, including Petersen
Health Care, Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10443) on March
20, 2024. In the petition signed by David R. Campbell as authorized
signatory, SC Healthcare disclosed up to $100 million to $500
million in assets and $100 million to $500 million in liabilities.
Judge Hon. Thomas M. Horan oversees the case.
Young Conaway Stargatt & Taylor, LLP, and Winston & Strawn LLP,
serve as the Debtors' legal counsel.
SCANROCK OIL & GAS: Royalty Interest Owners Want Official Committee
-------------------------------------------------------------------
An ad hoc group of royalty interest owners filed a motion seeking
the appointment of an official committee that will represent
royalty interest owners in the Chapter 11 cases of Scanrock Oil &
Gas, Inc. and its affiliates.
The group's attorney, Eric Haitz, Esq., at Bonds Ellis Eppich
Schafer Jones, LLP, said the appointment is necessary to ensure
"adequate representation" of royalty interest owners.
According to Mr. Haitz, for nearly five years, the companies
extracted and sold minerals they did not own, pocketed the
proceeds, and funneled the cash off to pay the expenses of insiders
and affiliates, including mortgage payments and expenses on the
Hill Country Ranch and Oregon Ranch.
Mr. Haitz cited a representative of the companies testifying that
oil and gas revenues were routinely siphoned away to sustain the
ranches.
"These transactions are not ordinary intercompany transfers; they
are a conversion of mineral interest owners' proceeds. Yet,
there is no estate fiduciary to represent the collective interests
of mineral owners and to rectify the transgressions committed by
the [companies'] prepetition management," Mr. Haitz said.
Mr. Haitz said that the companies' fiduciary obligations to
maximize value for all stakeholders are undermined by conflicting
priorities, favoring management, insiders and lenders at the direct
expense of unpaid royalty owners.
"The [companies] rushed to provide excessive adequate protection to
their secured lender despite uncontroverted testimony that the
lender already enjoys ample equity cushion," the attorney said,
pointing out that this was not a strategic business decision but an
effort by the companies' principal, Ryan Hoerauf, to "preserve his
trophy ranches" at the cost of other creditors.
On March 11, the ad hoc group's legal counsel conferred with the
legal counsel for the U.S. Trustee for Region 6 to discuss the
appointment of an official committee of royalty interest owners.
The trustee, however, has taken no position on the ad hoc group's
motion.
The motion is on the court's calendar for March 31.
Mr. Haitz can be reached through:
Joshua N. Eppich, Esq.
Eric T. Haitz, Esq.
Bonds Ellis Eppich Schafer Jones, LLP
420 Throckmorton Street, Suite 1000
Fort Worth, TX 76102
(817) 405-6900 telephone
(817) 405-6902 facsimile
Email: joshua@bondsellis.com
Email: eric.haitz@bondsellis.com -and-
-- and --
Ken Green, Esq.
Bonds Ellis Eppich Schafer Jones, LLP
402 Heights Blvd.
Houston, TX 77007
(713) 335-4990 telephone
(713) 335-4991 facsimile
Email: ken.green@bondsellis.com
About Scanrock Oil & Gas Inc.
Scanrock Oil & Gas Inc. operates an integrated oil and gas
exploration and production platform.
Scanrock Oil & Gas Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-90001) on February 3,
2025. In its petition, the Debtor reports estimated assets between
$10 million and $50 million and estimated liabilities between $50
million and $100 million.
Honorable Bankruptcy Judge Mark X. Mullin handles the case.
The Debtor is represented by Thomas Daniel Berghman, Esq. at Munsch
Hardt Kopf & Harr PC.
SCHILLER PARK: Hires Marcus & Millichap as Real Estate Broker
-------------------------------------------------------------
Schiller Park Hospitality, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to hire
Marcus & Millichap Real Estate Investment Services of Chicago, Inc.
as real estate agent and broker.
The broker will be selling the Four Point Sheraton at 10249 W.
Irving Park Road, Schiller Park, Illinois 60176.
Marcus & Millichap will be compensated 1.0 percent of the purchase
price if the contract successfully closes.
Marcus & Millichap Real Estate Investment Services of Chicago, Inc.
is a "disinterested person" as defined in 11 U.S.C. Sec. 101(14) of
the Bankruptcy Code, according to court filings.
The firm can be reached through:
Ebrahim Valliani
Marcus & Millichap Real Estate
Investment Services of Chicago, Inc.
One Mid-America Plaza, Suite 200
Oakbrook Terrace, IL 60181
Office: (630) 570-2200
Direct: (630) 570-2177
Email: ebrahim.valliani@marcusmillichap.com
About Schiller Park Hospitality
Schiller Park Hospitality, LLC, a company in Skokie, Ill., filed
Chapter 11 petition (Bankr. N.D. Ill. Case No. 25-01447) on January
30, 2025, listing between $10 million and $50 million in both
assets and liabilities. The petition was signed by Amin Amdani as
managing member.
Judge David D Cleary oversees the case.
The Debtor is represented by Paul M. Bach, Esq., at Bach Law
Offices.
CRE Bridge Capital, LLC, as lender, is represented by Harold D.
Israel, Esq. of Levenfeld Pearlstein, LLC.
SCHILLER PARK: Seeks to Hire Bach Law Offices Inc. as Attorney
--------------------------------------------------------------
Schiller Park Hospitality, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to hire Bach
Law Offices, Inc. as attorneys.
The firm will provide these services:
a. represent the Debtor in matters concerning negotiation with
creditors; and
b. prepare a plan and disclosures statement, examining and
resolving claims filed against the estate, preparation and
prosecution of adversary matters, and otherwise to represent each
Debtor in matters before the bankruptcy court.
The firm will be paid at $425 per hour.
The firm was paid a retainer in the amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Paul M. Bach, Esq., a partner at Bach Law Offices, Inc., disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Paul M. Bach, Esq.
Penelope N. Bach, Esq.
Bach Law Offices, Inc.
P.O. BOX 1285
Northbrook, IL 60062
Telephone: (847) 564 0808
About Schiller Park Hospitality
Schiller Park Hospitality, LLC, a company in Skokie, Ill., filed
Chapter 11 petition (Bankr. N.D. Ill. Case No. 25-01447) on January
30, 2025, listing between $10 million and $50 million in both
assets and liabilities. The petition was signed by Amin Amdani as
managing member.
Judge David D Cleary oversees the case.
The Debtor is represented by Paul M. Bach, Esq., at Bach Law
Offices.
CRE Bridge Capital, LLC, as lender, is represented by Harold D.
Israel, Esq. of Levenfeld Pearlstein, LLC
SEA WEST: Case Summary & One Unsecured Creditor
-----------------------------------------------
Debtor: Sea West, Inc.
P.O. Box 98
Sand Point, AK 99661
Business Description: Sea West, Inc. is a commercial fishing
company based in Sand Point, Alaska,
specializing in the use of fishing nets,
crab and cod pots, and other fishing gear
for harvesting marine species.
Chapter 11 Petition Date: March 19, 2025
Court: United States Bankruptcy Court
District of Alaska
Case No.: 25-00037
Debtor's Counsel: Jennifer L. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
1403 8th Street
Marysville, WA 98270
Tel: (425) 212-4800
Fax: (425) 212-4802
E-mail: courtmail@expresslaw.com
Total Assets: $1,235,000
Total Liabilities: $829,061
The petition was signed by Jack Berntsen as president.
The Debtor has listed Bush Kornfield LLP, at 601 Union St. Suite
5000, Seattle, WA 98101-2373, as its only unsecured creditor, with
a claim for $32,061 for legal services.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/JUY5RMY/Sea_West_Inc__akbke-25-00037__0001.0.pdf?mcid=tGE4TAMA
SHERWOOD HOSPITALITY: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------------
The U.S. Trustee for Region 18 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Sherwood Hospitality Group, LLC.
About Sherwood Hospitality Group
Sherwood Hospitality Group, LLC is a real estate holding company in
Sherwood, Ore.
Sherwood and its affiliate, DVKOCR Tigard, LLC, filed Chapter 11
petitions (Bankr. D. Ore. Lead Case No. 25-30484) on February 17,
2025. Alkesh R. Patel, manager, signed the petitions.
At the time of the filing, Sherwood reported between $1 million and
$10 million in assets and between $10 million and $50 million in
liabilities while DVKOCR reported between $10 million and $50
million in both assets and liabilities.
Judge Peter C. McKittrick oversees the cases.
Douglas R. Ricks, Esq., at Sussman Shank LLP, represents the
Debtors as legal counsel.
SHINE SOLAR: Seeks Chapter 11 Bankruptcy in Arkansas
----------------------------------------------------
On March 17, 2025, Shine Solar LLC filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Western District of Arkansas.
According to court filing, the Debtor reports $8,062,957 in
debt owed to 50 and 99 creditors. The petition states funds will
not be available to unsecured creditors.
About Shine Solar LLC
Shine Solar LLC is engaged in the business of selling, installing,
and servicing residential solar panels, as well as selling and
installing home batteries. Additionally, the Debtor participates in
limited HVAC sales, installation, and related activities.
Shine Solar LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Ark. Case No. 25-70455) on March 17,
2025. In its petition, the Debtor reports total assets of
$6,937,104 and total liabilities of $8,062,957.
Honorable Bankruptcy Judge Bianca M. Rucker handles the case.
The Debtor is represented by:
Stanley V. Bond, Esq.
BOND LAW OFFICE
525 S. School Ave.
Suite 100
Fayetteville, AR 72701
Tel: 479-444-0255
Fax: 479-235-2827
E-mail: attybond@me.com
SILAS ENTERPRISE: Seeks to Hire Crane Financial as Accountant
-------------------------------------------------------------
Silas Enterprise Company seeks approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to employ Crane
Financial, LLC as its accountant.
The firm will provide services such as tax planning, bookkeeping
services, reconcile accouts, prepare monthly Debtor reports, and
prepare, amend, and file tax returns. The Debtor is need of filing
the income tax returns for the years ending in 2021, 2022, 2023 and
2024.
The firm will be paid at a fee of 1 percent of the Debtor's gross
revenue, with a minimum annual retainer of $1,000 for services
performed for the tax years 2021 through 2024.
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an initial retaier of $1,000 from the Debtor.
Hollis Fullilove, the senior and lead accountant at Crane
Financial, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Hollis C. Fullilove, CPA
Crane Financial LLC
2000 Duke Street, Suite 300
Alexandria, VA 22314
Telephone: (703) 635-3300
Facsimile: (866) 361-8953
Email: joh.crane@craefinancial.com
About Silas Enterprise Company
Silas Enterprise Company is the fee simple owner of two properties
described as 9927 S. Morgan St. and 8956 S. Union Ave. The Debtor
also owns beneficial interests in two land trusts at 7011 S.
Indiana Ave. and 7945 S. Dobson Ave. The total value of the
properties is $954,000.
Silas Enterprise Company sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-01203) on January 27,
2025. In its petition, the Debtor reports total assets of $957,888
and total liabilities of $1,037,878.
Honorable Bankruptcy Judge Deborah L. Thorne handles the case.
The Debtor tapped David P. Lloyd, Ltd. as counsel and Crane
Financial, LLC as accountant.
SILVER AIRWAYS: Seeks to Hire Damian Valori Culmo as Local Counsel
------------------------------------------------------------------
Silver Airways, LLC and Seaborne Virgin Islands, Inc. seeks
approval from the U.S. Bankruptcy Court for the Southern District
of Florida to hire Damian Valori Culmo as local counsel.
The firm will render these services:
(a) give advice to the Debtors with respect to their powers
and duties as debtors in possession and the continued management of
their business operations;
(b) advise the Debtors with respect to their responsibilities
in complying with the U.S. Trustee’s Operating Guidelines and
Reporting Requirements and with the rules of the Court;
(c) prepare motions, pleadings orders, applications and
adversary proceedings, and other legal documents necessary in the
administration of these jointly administered cases;
(d) protect the interest of the Debtors in matters pending
before the Court; and
(e) represent the Debtors in negotiation with their creditors
in the preparation of a plan.
The firm will charge $625 per hour for its services.
Damian received a $25,000 retainer.
Kristopher E. Pearson, Esq.
DAMIAN | VALORI | CULMO
1010 Brickel Avenue, Suite 1020
Miami, FL 33131
Telephone: (305) 371-3960
Email: kpearson@dvcattorneys.com
About Silver Airways
Silver Airways, LLC is a regional U.S. airline operating flights
between gateways in Florida, the Southeast and The Bahamas. The
Silver Airways fleet is comprised of modern, state of the art
aircraft with reliable, fuel-efficient turbo-prop engines.
In the summer of 2018, Silver completed the acquisition of Seaborne
Airlines, a San Juan, Puerto Rico-based air carrier serving
destinations throughout Puerto Rico, the U.S. Virgin Islands, and
other countries in the Caribbean. Seaborne provides connections
throughout the Caribbean via the carrier's hub in San Juan, while
also serving as the most critical link between St. Croix and St.
Thomas with the carrier's seaplane operation.
Silver Airways and Seaborne Virgin Islands, Inc. filed Chapter 11
petitions (Bankr. S.D. Fla. Lead Case No. 24-23623) on December 30,
2024. At the time of the filing, Silver Airways reported $100
million to $500 million in assets and liabilities while Seaborne
reported $1 million to $10 million in assets and liabilities.
Judge Peter D. Russin oversees the cases.
Brian P. Hall, Esq., at Smith, Gambrell & Russell, LLP is the
Debtors' legal counsel.
SILVER AIRWAYS: Seeks to Hire Smith Gambrell & Russell as Attorney
------------------------------------------------------------------
Silver Airways, LLC and Seaborne Virgin Islands, Inc. seeks
approval from the U.S. Bankruptcy Court for the Southern District
of Florida to hire Smith Gambrell & Russell LLP as attorneys.
The firm will render these services:
(a) give advice to the Debtors with respect to the Debtors'
powers and duties as a debtors-in-possession and the continued
management of the Debtors' business operations;
(b) advise the Debtors with respect to the Debtors'
responsibilities in complying with the U.S. Trustee's Operating
Guidelines and Reporting Requirements and with the rules of the
Court;
(c) prepare motions, pleadings, orders, applications,
adversary proceedings, and other legal documents necessary in the
administration of the Debtors' cases;
(d) protect the interests of the Debtors in all matters
pending before the Court; and
(e) represent the Debtors in negotiation with their creditors
in the preparation of a plan.
The firm will be paid at these rates:
Brian P. Hall $725 per hour
Michael F. Holbein $650 per hour
Maureen McAneny $350 per hour
Smith Gambrell received a $150,000 retainer from the Debtors.
As disclosed in court filings, Smith Gambrell & Russell is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Brian P. Hall, Esq.
Michael F. Holbein, Esq.
SMITH, GAMBRELL & RUSSELL, LLP
1105 W. Peachtree Street NE, Suite 1000
Atlanta, GA 30309
Telephone: (404) 815-3537
Facsimile: (404) 685-6837
Email: bhall@sgrlaw.com
Email: mholbein@sgrlaw.com
About Silver Airways
Silver Airways, LLC is a regional U.S. airline operating flights
between gateways in Florida, the Southeast and The Bahamas. The
Silver Airways fleet is comprised of modern, state of the art
aircraft with reliable, fuel-efficient turbo-prop engines.
In the summer of 2018, Silver completed the acquisition of Seaborne
Airlines, a San Juan, Puerto Rico-based air carrier serving
destinations throughout Puerto Rico, the U.S. Virgin Islands, and
other countries in the Caribbean. Seaborne provides connections
throughout the Caribbean via the carrier's hub in San Juan, while
also serving as the most critical link between St. Croix and St.
Thomas with the carrier's seaplane operation.
Silver Airways and Seaborne Virgin Islands, Inc. filed Chapter 11
petitions (Bankr. S.D. Fla. Lead Case No. 24-23623) on December 30,
2024. At the time of the filing, Silver Airways reported $100
million to $500 million in assets and liabilities while Seaborne
reported $1 million to $10 million in assets and liabilities.
Judge Peter D. Russin oversees the cases.
Brian P. Hall, Esq., at Smith, Gambrell & Russell, LLP is the
Debtors' legal counsel.
SMITH ENVIRONMENTAL: Hires Wadsworth Garber Warner as Counsel
-------------------------------------------------------------
Smith Environmental and Engineering Inc. seeks approval from the
U.S. Bankruptcy Court for the District of Colorado to employ
Wadsworth Garber Warner Conrardy, P.C. as counsel
The firm's services include:
(a) prepare all necessary legal papers in this Chapter 11
case;
(b) perform all legal services for the Debtor which may become
necessary herein; and
(c) represent the Debtor in any litigation which it determines
is in the best interest of the estate, whether in state or federal
court(s).
The firm's counsel and staff will be paid at these hourly rates:
David Wadsworth, Attorney $500
Aaron Garber, Attorney $500
David Warner, Attorney $425
Aaron Conrardy, Attorney $425
Lindsay Riley, Attorney $325
Hallie S. Cooper, Attorney $225
Paralegals $125
The firm received a retainer in the amount of $25,000.
Mr. Warner disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
David J. Warner, Esq.
Wadsworth Garber Warner Conrardy, P.C.
2580 W. Main St., Ste. 200
Littleton, CO 80120
Telephone: (303) 296-1999
Email: dwarner@wgwc-law.com
About Smith Environmental and Engineering Inc.
Smith Environmental and Engineering Inc. is a woman-owned
consulting firm that provides comprehensive environmental services,
specializing in ecological sciences, environmental engineering, and
construction. With over 24 years of experience, the Company offers
tailored solutions for environmental management, hazardous
materials, and cultural resource projects across various
industries.
Smith Environmental and Engineering Inc. sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Col. Case No. 25-11042) on February 28, 2025. In its petition, the
Debtor reports total assets of $1,486,401 and total liabilities of
$2,975,603.
Honorable Bankruptcy Judge Michael E. Romero handles the case.
The Debtor is represented by David J. Warner, Esq., at Wadsworth
Garber Warner Conrardy, P.C.
SNP ENTERPRISES: Seeks to Sell Tinton Falls Property
----------------------------------------------------
SNP Enterprises LLC seeks approval from the U.S. Bankruptcy Court
for the District of New Jersey, to sell Real Property, free and
clear of liens, interests, and encumbrances.
The Debtor's Property is located at 40 Reeds Road, Tinton Falls,
New Jersey.
The Debtor proposes to use the proceeds of the sale to satisfy the
liens of the Property unless the liens are otherwise avoided by the
court, and to pay the Debtor's real estate attorney, Robert C.
Nisenson, Esq., in the amount of $2,500.
The proceeds of the sale will also be applied to pay in full at
closing the mortgage on the real property which is held by CoreVest
Finance, its successors and/or assigns, who will be paid in full
out of the proceeds of the sale.
The lien of CoreVest Finance will remain on the premises commonly
known as 40 Reeds Road, Tinton Falls, New Jersey until the closing
proceeds are received and applied by BSI Financial Services.
The Debtor also proposes that all real estate taxes and water and
sewer fees will be paid at the time of closing.
About SNP Enterprises LLC
SNP Enterprises LLC' principal assets are located at 40 Reeds Road,
Tinton Falls, NJ 07724.
SNP Enterprises LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 25-12586) on March 13,
2025. In its petition, the Debtor reports total assets of
$1,572,715 and total liabilities of $1,096,158
Honorable Bankruptcy Judge Mark Edward Hall handles the case.
The Debtor is represented by Robert Nisenson, Esq., at ROBERT C.
NISENSON.
SOLEPLY LLC: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Soleply LLC
2000 Route 38, Space 2160
Cherry Hill, NJ 08002
Business Description: Soleply runs a top-tier buy/sell/trade
retail business focused on high-end,
limited-edition sneakers and streetwear.
Chapter 11 Petition Date: March 21, 2025
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 25-12919
Debtor's Counsel: Ronald S. Gellert, Esq.
GELLERT SEITZ BUSENKELL & BROWN LLC
1201 N. Orange St, Suite 300
Wilmington, DE 19801
Tel: 302-425-5806
Fax: 302-425-5814
Email: rgellert@gsbblaw.com
Total Assets: $1,876,555
Total Liabilities: $2,017,647
The petition was signed by Thomas Yoder as chief operating
officer.
A complete copy of the petition, which contains a list of the
Debtor's 20 largest unsecured creditors, can be accessed for free
on PacerMonitor at:
https://www.pacermonitor.com/view/WM2SFKY/Soleply_LLC__njbke-25-12919__0001.0.pdf?mcid=tGE4TAMA
SOLEPLY LLC: Seeks Chapter 11 Bankruptcy in New Jersey
------------------------------------------------------
On March 21, 2025, Soleply LLC filed Chapter 11 protection in the
U.S. Bankruptcy Court for the District of New Jersey. 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 Soleply LLC
Soleply LLC is a retailer specializing in premium sneakers and
streetwear, operates both online (soleply.com) and physical stores
including its main location in Cherry Hill, NJ. The company sells a
variety of branded footwear including Nike Dunks, Air Jordans,
ASICS Gel-Kayano models, and adidas Yeezy products, along with
high-end streetwear from brands like Fear of God Essentials, Denim
Tears, and Bravest Studios.
Soleply LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D.N.J. Case No. 25-12919) on March 21, 2025. In its
petition, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
The Debtor is represented by:
Ronald S. Gellert, Esq.
Gellert Seitz Busenkell & Brown, LLC
1201 North Orange Street Suite 300
Wilmington, DE 19801
Phone: 302-425-5806
Fax: 302-425-5814
SONDER COUNSELING: Seeks to Hire Carmody MacDonald as Counsel
-------------------------------------------------------------
Sonder Counseling, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Missouri to employ Carmody
MacDonald PC as bankruptcy counsel.
The firm will provide the following services:
(a) advise Debtor with respect to its rights, power, and
duties in this Chapter 11 case;
(b) assist and advise the Debtor in its consultations with any
appointed committee related to the administration of this Chapter
11 case;
(c) assist the Debtor in analyzing the claims of creditors and
negotiating with such creditors;
(d) assist the Debtor with investigation of the assets,
liabilities, and financial condition of it and reorganizing its
business in order to maximize the value of its assets for the
benefit of all creditors;
(e) advise the Debtor in connection with the sale of assets or
business;
(f) assist the Debtor in its analysis of and negotiation with
any appointed committee or any third-party concerning matters
related to, among other things, the terms of a plan of
reorganization;
(g) assist and advise the Debtor with respect to any
communications with the general creditor body regarding significant
matters in this Chapter 11 case;
(h) commence and prosecute necessary and appropriate actions
and/or proceedings on behalf of the Debtor;
(i) review, analyze, or prepare, on behalf of the Debtor, all
necessary legal documents;
(j) represent the Debtor at all hearings and other
proceedings;
(k) confer with other professional advisors retained by the
Debtor;
(l) perform all other necessary legal services in this Chapter
11 case as may be requested by the Debtor; and
(m) assist and advise the Debtor regarding pending arbitration
and litigation matters in which it may be involved.
The firm's professionals will be paid at these rates:
Partners $310 - $650
Associates $280 - $355
Paralegals/Law Clerks $150 - $205
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a payment of $5,032 for services performed prior
to the petition date.
Robert Eggmann, Esq., an attorney at Carmody MacDonald, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Robert E. Eggmann, Esq.
Carmody MacDonald P.C.
120 S. Central Avenue, Suite 1800
St. Louis, MO 63105
Telephone: (314) 854-8600
Facsimile: (314) 854-8660
Email: ree@carmodymacdonald.com
About Sonder Counseling
Sonder Counseling, LLC filed its Chapter 11 petition (Bankr. E.D.
Mo. Case No. 25-40726) on March 7, 2025, listing under $1 million
in both assets and liabilities.
Judge Bonnie L. Clair oversees the case.
Robert E. Eggmann, Esq., at Carmody MacDonald P.C. serves as the
Debtor's counsel.
SOUTH REGENCY: U.S. Trustee Appoints Creditors' Committee
---------------------------------------------------------
The U.S. Trustee for Region 20 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of South
Regency Shops, LLC.
The committee members are:
1. Block & Co., Inc.
Richard D. Morehouse, Director- Operations
605 W. 47th Street, Suite 200
Kansas City, MO 64112
(816) 763-6000
rmorehouse@blockandco.com
2. John L. Lentell, JD, MBA, LLC
John L. Lentell, Member
10975 Benson Drive, Suite 370
Overland Park, KS 66210
(913) 400-2032
jlentell@lentell-lawoffice.com
3. Stephen P. Maslan
8011 Paseo Blvd., Suite 201
Kansas City, MO 64131
(816) 547-8243
smaslan1950@gmail.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About South Regency Shops
South Regency Shops, LLC owns a shopping center situated at 9296
Metcalf Avenue in Overland Park, Kan., with an estimated current
value of $810,000.
South Regency Shops filed Chapter 11 petition (Bankr. D. Kan. Case
No. 25-20140) on February 10, 2025, listing total assets of
$817,347 and total liabilities of $2,578,359.
Judge Dale L. Somers handles the case.
The Debtor is represented by:
Colin Gotham, Esq.
Evans & Mullinix, P.A.
7225 Renner Road, Suite 200
Shawnee, KS 66217
Tel: (913) 962-8700
Fax: (913) 962-8701
Email: cgotham@emlawkc.com
SPIRIT AIRLINES: S&P Ups ICR to 'CCC+' on Bankruptcy Emergence
--------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Spirit
Airlines LLC to 'CCC+' from 'D'. S&P also raised its ratings on
Spirit's enhanced equipment trust certificates (EETCs) by two
notches, reflecting its higher issuer credit rating on the
company.
The stable outlook reflects S&P's expectation that Spirit's revised
capital structure will provide sufficient liquidity to fund an
estimated free cash flow deficit for at least the next 12 months as
it executes its transformation plan.
Spirit Aviation Holdings, Inc., parent company of Spirit Airlines,
LLC, emerged from bankruptcy with a revised capital structure on
March 12, 2025, after filing for Chapter 11 protection in November
2024.
The emergence from creditor protection has reduced Spirit's debt
levels and improved its liquidity position, but risks remain. The
company's post-emergence capital structure consists of a new $275
million revolver, a new $840 million exit senior secured notes,
$136 million of existing U.S. Treasury-issued payroll support (PSP)
loans, and about $1.6 billion of various existing aircraft debt.
S&P said, "We do not rate the new exit facilities. Of the $1.6
billion senior secured and convertible notes previously
outstanding, $795 million was equitized. In addition, the company
has repaid the $309 million debtor-in-possession (DIP) financing
and the $300 million drawn on the previous revolver. At emergence,
total funded debt was lower by $1.4 billion (including repayment of
the DIP financing) with the maturities extended out from 2025.
Total liquidity inclusive of $275 million revolver availability was
about $1 billion, which should provide some runway for the company
to execute its business transformation plans over the next 12
months. We project about $950 million at the end of 2025 and note
that the new senior secured notes have a $450 million minimum
liquidity covenant."
S&P said, "We estimate gradual recovery in operating performance,
but the company remains vulnerable to market and macroeconomic
conditions to meet future financial commitments. Spirit's
bankruptcy filing and subsequent emergence follows a period of
deterioration in the company's operating performance, which
included operating losses and steep free cash flow deficits in 2023
and 2024. Aircraft on ground (AOGs) from engine issues that limited
capacity growth and utilization, overcapacity in key domestic
markets, and elevated labor costs were notable contributors.
"We consider there to be execution risks to management's business
transformation plan. The company's turnaround initiatives include
network reconfiguration to align supply and demand, differentiating
product options with a focus on new premium offerings, and
improving brand sentiment through marketing. In our view, these
efforts will take time (likely more than a year) to translate into
meaningful improvement, and we do not expect a significant rebound
in credit metrics to levels commensurate with a higher rating at
least through 2026. Also, Spirit remains exposed to competitive
pressures (with an estimated 40% route overlap with Frontier and
25% with Southwest), and we view pricing power to be somewhat
limited by its value proposition as a low-cost option. The industry
has moved toward premium offerings as a response to a structural
shift in consumer demand, but Spirit will need to demonstrate a
sustainable ability to sell higher fares considering its
historically value-conscious customer base. Furthermore, the
company's bankruptcy could have an impact on Spirit's brand image
and thus prospective passenger demand over the near-term.
"We project capacity to decline in the mid-teens percentage area in
2025 as a result of AOGs and the sale and removal of aircraft from
service as Spirit reduces frequency on underperforming routes.
While this should benefit unit revenues, unit costs will be
adversely impacted by lower fleet utilization (less fixed cost
absorption) and increased aircraft rent from 2024 and 2025
deliveries. Management expects the number of AOGs to double this
year and doesn't anticipate improvement until 2027 at the earliest.
We project cost per available seat mile excluding fuel and special
items (CASM-ex) to rise further by about 9% in 2025, after a 13%
increase in 2024. Despite our projection of improved profitability
with S&P Global Ratings-adjusted EBITDA margins about 7.5% in 2025,
we expect an unadjusted free cash flow deficit of about $270
million."
Increasing macroeconomic uncertainty could dampen consumer
spending, thereby pressuring domestic travel demand. S&P Global
Ratings believes there is a high degree of unpredictability around
policy implementation by the U.S. administration and the potential
effect on economies, supply chains, and credit conditions around
the world. Additionally, several airlines have revised guidance for
Q1 2025 earnings to account for softer-than expected demand (among
other factors). S&P said, "While our base-case currently forecasts
further operational improvement in 2026, a recessionary environment
could drive a material reduction in customer demand, particularly
within the domestic leisure market. We believe that an unexpected
deterioration in market conditions would likely result in a widened
free cash flow deficit beyond our current forecast and pressure
Spirit's liquidity position."
The stable outlook reflects S&P's view that Spirit will have
sufficient liquidity to fund its free cash flow deficit over at
least the next 12 months as it implements its transformation
initiatives, with the potential for improvement in cash flow beyond
this year.
S&P could lower its rating on Spirit if S&P believes the company is
likely to default absent unforeseen positive developments in the
next 12 months. This could occur if:
-- Current operating trends do not improve such the company
continues to generate substantial negative free operating cash flow
(FOCF), facing a heightened risk of being unable to meet its
financial obligations; or
-- The company pursues a debt repurchase or exchange transaction
that we view as tantamount to a default.
S&P said, "We could raise our rating on Spirit if the company
significantly improves its operating performance, supported by
stable revenues and consistent margin improvement, leading to funds
from operations (FFO)/debt in the low- to mid-single-digit percent
area on a sustained basis. We would also expect adequate liquidity
supported by sustained positive free cash flow generation, as well
as EBITDA interest coverage firmly above 1x."
SPRING EDUCATION: Moody's Affirms 'B3' CFR, Outlook Remains Stable
------------------------------------------------------------------
Moody's Ratings affirmed Spring Education Group, Inc.'s B3
Corporate Family Rating and B3-PD Probability of Default Rating.
Concurrently, Moody's affirmed the B2 backed senior secured first
lien bank credit facility rating consisting of a revolving credit
facility and term loan. The ratings outlook remains stable.
Spring Education announced plans to issue at a holding company
(HoldCo) a new $825 million pay-in-kind (PIK) note due April 2031
to Brookfield Special Investments LLC (Brookfield). The company
plans to use the proceeds to refinance its existing HoldCo PIK note
due July 2026, fund a roughly $500 million shareholder distribution
to Primavera Capital Group, add approximately $45 million of cash
to its balance sheet, and pay transaction expenses. Brookfield will
obtain warrants exercisable for Spring Education's common stock as
part of the transaction.
The transaction is credit negative because the significant increase
in debt will largely be used to fund a shareholder distribution and
indicates an aggressive financial policy. This will meaningfully
increase debt-to-EBITDA leverage to around 10.0x (incorporating
Moody's standard adjustments as well as the new HoldCo note), up
from approximately 8.0x for the 12 months period ended December
2024. The aggressive increase in leverage also creates event risk
to fund a redemption of the PIK note while the high PIK rate
creates incentives to undertake aggressive growth strategies that
may result in suboptimal capital allocation or operational
challenges. The company can elect to pay the HoldCo note interest
in cash or PIK though Spring Education expects to PIK the coupon.
Moody's nevertheless affirmed the existing ratings with a stable
outlook because electing the PIK option will not create any
immediate cash outflows that would affect free cash flow. The
additional $45 million cash injection also provides incremental
funding for the company's growth strategies and seasonal working
capital needs. The partnership with Brookfield, a company with deep
knowledge of the real estate industry, provides an opportunity to
strengthen Spring Education's capabilities in activities such as
site selection and development of new facilities.
Spring Education's liquidity also remains adequate and will be
initially improved by the transaction. The $45 million injection
raises the cash balance to a $106 million pro forma level as of
December 2024. Liquidity is also supported by a $100 million
revolving credit facility, which as of December 2024 had $60
million outstanding due to seasonal working capital swings, but
should be fully repaid by the fiscal year ending June 2025 through
seasonal cash inflows.
The B2 rating for its senior secured first lien credit facility
($100 million revolving credit facility expiring in 2028 and $842
million outstanding term loan due 2030) remains one notch above the
B3 CFR, reflecting some loss absorption and support provided by the
HoldCo PIK notes as well as the meaningful amount of unsecured
operating lease obligations. The HoldCo PIK notes are due in April
2031 and were issued by a parent holding company with no upstream
guarantees.
RATINGS RATIONALE
Spring Education's B3 CFR broadly reflects high leverage and weak
free cash flow due to reinvestment needs in existing facilities and
new school openings and the high interest burden. Debt-to-EBITDA
leverage (incorporating Moody's standard adjustments as well as the
$825 million of HoldCo PIK notes in debt) is around 10.0x for the
LTM period ended December 2024. Moody's expects leverage to decline
to just below 9.5x over the next year through earnings growth and
project modestly positive free cash flow over the next fiscal year.
Additionally, the credit profile is constrained by the company's
history of aggressive financial policies as evidenced by three
primarily debt funded acquisitions (prior to the pandemic) since
the leveraged buyout by Primavera Capital in 2017 and debt-funded
shareholder distributions. Spring Education has modest scale and
operates in the competitive primary and early childhood education
school market. School enrollment is somewhat tied to general
economic conditions due to the relatively cyclical nature of the
for-profit private school education industry, especially in the
early childhood education segment where employment levels affect
demand.
However, the credit profile is supported by the company's
established base of schools with strong brand recognition for some
of its schools such as the Stratford and BASIS K-12 schools.
Enrollment has stabilized after the drop experienced during the
pandemic and the company maintains good ability to raise prices to
offset cost pressures such as for teachers and other personnel.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Moody's views that Spring Education's
debt-to-EBITDA leverage will decline over the next year through
earnings growth. The stable outlook also reflects Moody's
expectations for at least adequate liquidity over the next year
including modestly positive free cash flow and sufficient revolver
capacity to manage the seasonal cash needs.
The ratings could be upgraded if enrollment and operating
performance continue to improve with Moody's lease adjusted
debt-to-EBITDA sustained below 6x and maintenance of at least good
liquidity with free cash flow to debt in a mid-single digit
percentage range.
The ratings could be downgraded if there is deterioration of
operating performance including from enrollment declines, pricing
weakness or cost increases, or if liquidity deteriorates. Negative
free cash flow or EBITDA less capital spending to interest below
1.0x could also lead to a downgrade.
Spring Education Group, Inc. is a for-profit provider of early
childhood education and K-12th grade education with schools across
the United States. Spring Education is privately owned by Primavera
Capital Group, an Asia-based private equity firm that acquired the
company in 2017. Revenue for the LTM period ended December 31, 2024
was approximately $900 million.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
STOLI GROUP: Seeks to Extend Plan Exclusivity to June 25
--------------------------------------------------------
Stoli Group (USA), LLC and Kentucky Owl, LLC asked the U.S.
Bankruptcy Court for the Northern District of Texas to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to June 25 and August 24, 2025, respectively.
Here, for a number of reasons, the relevant factors weigh in favor
of the Court granting the Debtors' initial request for an extension
of the Exclusivity Periods:
* First, these Chapter 11 Cases are complex, as reflected by
the Court's Order Granting Complex Chapter 11 Bankruptcy Case
Treatment. Indeed, the Debtors have a significant number of
creditors, various assets, and global operations that make these
Chapter 11 Cases large and complex. This adds complexity to a
reorganization of the Debtors' business relationships and financial
statements, and the complexities and large pool of potential
creditors require the Debtors and their advisors to focus on
numerous issues when formulating a chapter 11 plan.
* Second, this is the Debtors' first request for an extension
of the Exclusivity Periods. Because of the complexity of the
Chapter 11 Cases, an extension of the Exclusivity Periods will give
the Debtors sufficient and much-needed time to continue exploring
the terms of a chapter 11 plan of reorganization with their
stakeholders and memorialize the terms of both a plan and
disclosure statement.
* Third, the Debtors' purpose in seeking an extension of the
Exclusivity Periods is a good-faith effort to continue their
reorganization efforts without the distraction and costs of a
competing plan process, which would be a waste of the Debtors'
limited time and resources. The relief requested in the Motion is
not intended for the purpose of coercing or strong-arming any
creditor but rather to benefit all of the Estates' stakeholders as
a whole.
* Fourth, the Debtors have displayed a willingness to
accommodate and negotiate with their various stakeholders, and the
Debtors' actions have shown that the Debtors have a reasonable
prospect of generating a viable plan. As such, those factors also
weigh in favor of granting the Debtors an extension of the
Exclusivity Periods.
* Finally, a relatively small amount of time has passed since
the commencement of these Chapter 11 Cases. However, in that short
time period, the Debtors have made much progress. The Debtors and
their professionals have worked to reaffirm relationships with the
Debtors' customers and vendors, employ professionals to assist the
Debtors in their reorganization efforts, establish notice
procedures, prepare and file schedules, statements, and monthly
operating reports, and engage in discussions with various
stakeholders.
In sum, the Debtors believe that there is ample cause to extend the
Exclusivity Periods and that the requested extension of the
Exclusivity Periods is warranted and appropriate under the
circumstances, particularly since this is the Debtors' first
request for extension. The Debtors submit that the requested
extension is reasonable and necessary, will not prejudice the
legitimate interests of creditors and other parties in interest,
and will afford the Debtors a meaningful opportunity to pursue a
feasible and consensual plan.
The Debtors' Counsel:
Holland N. O'Neil, Esq.
Stephen A. Jones, Esq.
Mary Rofaeil, Esq.
Zachary C. Zahn, Esq.
FOLEY & LARDNER LLP
2021 McKinney Avenue
Suite 1600
Dallas, TX 75201
Tel: (214) 999-3000
Fax: (214) 999-4667
Email: honeil@foley.com
sajones@foley.com
mary.rofaeil@foley.com
zzahn@foley.com
- and -
Ann Marie Uetz, Esq.
FOLEY & LARDNER LLP
500 Woodward Avenue, Suite 2700
Detroit, MI 48226-3489
Tel: (313) 234-7100
Fax: (313) 234-2800
Email: auetz@foley.com
- and -
Michael J. Small, Esq.
FOLEY & LARDNER LLP
321 North Clark Street, Suite 3000
Chicago, IL 60654-4762
Tel: (312) 832-4500
Fax: (312) 832-4700
Email: msmall@foley.com
About Stoli Group (USA) LLC
Stoli Group (USA) LLC is a producer, manager, and distributor of a
global portfolio of spirits and wines.
Stoli Group (USA) and its Kentucky Owl American sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No.
24-80146) on Nov. 27, 2024. In the petition filed by Chris
Caldwell, president and global chief executive officer, Stoli Group
(USA) reported assets between $100 million and $500 million and
liabilities between $10 million and $50 million.
Judge Scott W. Everett handles the cases.
Foley & Lardner, LLP represents the Debtors as legal counsel.
Fifth Third Bank, as lender, can be reached through its counsel:
Brent McIlwain, Esq.
Christopher A. Bailey, Esq.
Holland & Knight, LLP
1722 Routh Street, Suite 1500
Dallas, TX 75201
Telephone: 214.969.1700
Email: brent.mcilwain@hklaw.com
chris.bailey@hklaw.com
-- and --
Jeremy M. Downs, Esq.
Steven J. Wickman, Esq.
Goldberg Kohn, Ltd.
55 East Monroe Street, Suite 3300
Chicago, IL 60603
Telephone: 312.201.4000
Email: jeremy.downs@goldbergkohn.com
steven.wickman@goldbergkohn.com
STRAITLINE WELL: Seeks Chapter 11 Bankruptcy in Texas
-----------------------------------------------------
On March 17, 2025, Straitline Well Services LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Western District
of Texas. According to court filing, the Debtor reports between
$1 million and $10 million in debt owed to 50 and 99 creditors.
The petition states funds will not be available to unsecured
creditors.
About Straitline Well Services LLC
Straitline Well Services LLC provides water transfer solutions for
the oil and gas industry, including services for drilling support,
completions, production, and pipeline hydrotesting. The Company
leases mobile water pumping units and related equipment to support
its operations, primarily in Texas, where they pump and supply
water to oil and gas wells across major basins.
Straitline Well Services LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-50498) on March
17, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Craig A. Gargotta handles the case.
The Debtor is represented by:
Morris E. "Trey" White, III, Esq.
VILLA & WHITE LLP
100 NE Loop 410 Suite 615
San Antonio TX 78216
Tel: (210) 225-4500
Email: treywhite@villawhite.com
SUMMIT MIDSTREAM: S&P Affirms 'B+' ICR, Outlook Stable
------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on Summit
Midstream Corp. (SMC).
S&P said, "We also affirmed our 'B+' issue-level rating on the
company's senior-secured second-lien notes, along with our '3'
recovery rating. The notes are issued by Summit Midstream Holdings
LLC.
"At the same time, we raised our issue-level rating on SMC's
preferred stock to 'CCC+' from 'D'.
"The stable outlook reflects our expectation for S&P Global
Ratings-adjusted debt to EBITDA of 4.25x-4.5x over the next 12
months, based on relatively stable volume growth and ample
liquidity."
On March 10, 2025, Summit Midstream Corp. (SMC) announced that,
through Summit Midstream Holdings LLC, it had acquired Moonrise
Midstream LLC for $90 million, consisting of $70 million cash and
$20 million in SMC equity.
S&P said, "We view the resumption of the preferred dividend as a
credit positive, as it effectively freezes the accrued balance
which treat as 50% debt. We see the resumption of the preferred
dividend as a sign of improving and more visible cash flow
stability going forward, given our expectations that SMC will
continue to pay this dividend and potentially repay some of the
accrued amount going forward. The repayment of the preferred
dividend comes almost a year ahead of schedule as compared to our
previous forecast. The company is prohibited from resuming the
dividend on its common stock until certain leverage targets are
achieved and only if the preferred is paying a dividend. We view
this as the first step to future common dividend payments and
believe the company is better positioned to maintain these
preferred distribution payments over our forecast period. As a
result of the dividend resumption on the preferred stock, we raised
the issue-level rating on the preferred stock to 'CCC+'. The
three-notch separation between the issue-level rating and the
issuer credit rating reflects subordination and deferral risk,
respectively.
"We consider the recent acquisition of Moonrise Midstream to be
leverage neutral. The $90 million transaction, consisting of $70
million cash (drawn on the company's asset-based lending [ABL]
facility) and $20 million equity, reflects an approximate 5x
multiple. The transaction expands SMC's gathering and processing
footprint in the Denver-Julesburg (DJ) basin. It includes an
expandable 65 million cubic feet per day of processing capacity and
provides the issuer's customers with additional options. In our
view, the acquisition positions the company to better handle future
volume growth while continuing the company's consolidation strategy
of building scale through bolt-on acquisitions. The partial equity
component of the deal allows the company to continue to target
improving leverage. We expect the company to continue to generate
excess free cash flow, which it can use for additional expansion
opportunities, acquisitions, or debt reduction so that it can
resume the dividend on its common stock.
"The stable outlook on SMC reflects our expectation for leverage
between 4.25x and 4.50x over the next 12 months. We base this on
the company's relatively stable volume growth and a flexible
capital budget."
S&P could take a negative rating action on SMC if its S&P Global
Ratings-adjusted debt to EBITDA exceeds 5x on a sustained basis due
to:
-- A decline in operational performance; or
-- A shift to a more-aggressive financial policy that increases
its debt balance and weakens its liquidity.
Due to the company's limited scale and geographic diversity, S&P
deems it unlikely that we would take a positive rating action on
SMC during the next 12 months. However, S&P could consider a
positive rating action if the company:
-- Sustains total S&P Global Ratings-adjusted leverage of less
than 3.5x;
-- Increases its operating scale; and
-- Meaningfully improves the geographic diversity of its
operations.
SUNOCO LP: S&P Rates New $750MM Senior Unsecured Notes 'BB+'
------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '3'
recovery rating to Sunoco L.P.'s proposed $750 million senior
unsecured notes due 2033. The '3' recovery rating indicates our
expectation for meaningful (50%-70%; rounded estimate: 65%)
recovery in the event of a default. The company plans to use the
proceeds from these notes to fully redeem its legacy NuStar $600
million senior notes due 2025 and repay a portion of its credit
facility, thus it views the transaction as credit neutral.
S&P said, "Sunoco L.P. does not have any secured debt. We cap our
recovery rating on the company's unsecured debt at '3' because we
generally cap our recovery ratings on the unsecured debt of
companies we rate 'BB-'or higher to reflect the elevated risk they
will issue incremental debt that impairs the recovery prospects for
the unsecured debt. We assume the pari passu revolving credit
facility is 85% drawn at default."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario contemplates a prolonged
period of increased competition in the wholesale distribution
business that significantly compresses the company's margins, along
with a decline in the demand for motor fuels such that its volume
of refined products sold declines considerably.
-- S&P also considers in this scenario reduced fee-based revenue
from the midstream pipeline assets, due to reduced production
volumes in the basins served by the company's assets, most likely
due to a prolonged period of weak crude and natural gas prices.
This assumes that shippers would exhibit financial difficulties and
be unable to pay the firm reservation charges on the pipeline
utilized.
Simulated default assumptions
-- Simulated year of default: 2029
-- EBITDA at emergence: $933 million
-- EBITDA multiple: 7x
Simplified waterfall
-- Net enterprise value (after 5% administration costs):
Approximately $6.2 billion
-- Senior unsecured debt: Approximately $8.8 billion
--Recovery expectations: Capped at 50%-70% (rounded estimate:
65%)
Note: All debt amounts include six months of prepetition interest.
TEAM MUV FITNESS: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
The U.S. Trustee for Region 18 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Team MUV Fitness Troutdale, LLC.
About Team MUV Fitness Troutdale
Team MUV Fitness Troutdale LLC is a fitness center located at 2469
SW Cherry Park Road in Troutdale, Oregon. It offers a variety of
amenities, including cardio and strength training equipment, group
fitness classes like Boot Camp, Zumba, and yoga, an indoor swimming
pool, basketball and pickleball courts, and onsite childcare
services.
Team MUV Fitness Troutdale LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Or.Case No. 25-30476) on
February 17, 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 Teresa H. Pearson handles the case.
The Debtor is represented by:
Oren B. Haker, Esq.
Black Helterline, LLP
805 SW Broadway, Suite 1900
Portland, OR 97205
Tel: 503-224-5560
Fax: 503-224-6148
Email: oren.haker@bhlaw.com
TETRAD ENTERPRISES: Seeks to hire WVS Law as Bankruptcy Counsel
---------------------------------------------------------------
TETRAD Enterprises LLC seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire WVS Law, LLC to
handle its Chapter 11 proceedings.
WVS Law will be billed $250 per hour for attorney fees, plus
reimbursement for expenses incurred.
The firm will also receive a retainer in the amount of $20,000.
Wallace Vazquez Sanabria, Esq., the principal at WVS Law, disclosed
in a court filing that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Wallace Vazquez Sanabria, Esq.
WVS LAW LLC
17 Mexico St., Suite D-1
San Juan, PR 00917-2202
Telephone: (787) 756-5730
Facsimile: (787) 764-0340
Email: wvslawllc@gmail.com
About TETRAD Enterprises LLC
TETRAD Enterprises LLC is a conglomerate project development firm
specializing in large-scale utility projects. The company offers
Hydraflo pumps, which are hydraulically-driven, large-volume
submersible water pumps designed for rapid setup and heavy-duty
performance across various applications, including emergency
pumping, flood control, stormwater drainage, dewatering, and
agricultural irrigation.
TETRAD Enterprises LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.P.R. Case No. 25-00895) on February 28,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 billion and $50 billion each.
The Debtor is represented by Wallace Vazquez Sanabria, Esq. at WVS
LAW LLC.
TEXAS SOLAR: Seeks Court Approval to Hire Mel T. Davis as Broker
----------------------------------------------------------------
Texas Solar Integrated, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Mel T. Davis, a
licensed professional based in Elmendorf, Texas, as broker.
The professional will provide services regarding the sale of
Debtor's excess personal property.
The Debtor proposes paying a 15 percent fee to Mr. Davis for all
items selling for less than $5,000 and a 10 percent fee on all
individual items selling for $5,000 or more. The auctioneers will
charge and keep a 15 percent buyer's premium. The Debtor will pay
the first $900 of the advertising and the auctioneer will pay the
balance.
Mr. Davis assured the court that he is a "disinterested person"
within the meaning of section 101(14) of the Bankruptcy Code.
Mr. Davis can be reached at:
Mel T. Davis
14895, Elmendorf, TX, 78112
Office: (210) 633-2445
About Texas Solar Integrated, LLC
Texas Solar Integrated, LLC is a solar panel installation company
in San Antonio, Texas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Texas Case No. 24-52297) on November
14, 2024, with $50 million to $100 million in assets and $10
million to $50 million in liabilities. Mike Sardo, manager, signed
the petition.
Judge Michael M. Parker oversees the case.
Ray Battaglia, Esq., at the Law Offices of Ray Battaglia, PLLC,
represents the Debtor as bankruptcy counsel.
TEZCAT LLC: Seeks Subchapter V Bankruptcy in Florida
----------------------------------------------------
On March 17, 2025, Tezcat LLC filed Chapter 11 protection in the
U.S. Bankruptcy Court for the Middle District of Florida.
According to court filing, the Debtor reports $1,001,540 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Tezcat LLC
Tezcat LLC, operating as Tepeyolot Cervecerias, is a family-owned
brewery and restaurant in Jacksonville, Florida, offering fresh
Mexican cuisine paired with craft lagers
brewed on-site. In addition to its dine-in and takeout options, the
business provides catering for events like birthdays, weddings, and
corporate functions. Tepeyolot also offers online ordering and
party booking services, ensuring a convenient experience for its
customers. Guests can enjoy a wide range of beverages, including
margaritas, sangria, wine, and mixed drinks.
Tezcat LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Fla. Case No. 25-00803 ) on March 17, 2025. In
its petition, the Debtor reports total assets of $22,708 and total
liabilities of $1,001,540.
Honorable Bankruptcy Judge Jason A. Burgess handles the case.
The Debtor is represented by:
Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: (813) 877-4669
Fax: (813) 877-5543
E-mail: All@tampaesq.com
THOMPSON PARK: S&P Assigns BB- (sf) Rating on Class E-R Notes
-------------------------------------------------------------
S&P Global Ratings assigned its ratings to the class A-1-R, B-1-R,
C-R, D-R, and E-R replacement debt from Thompson Park CLO
Ltd./Thompson Park CLO LLC, a CLO originally issued in April 2021
that was managed by Blackstone Liquid Credit Strategies LLC. At the
same time, S&P withdrew its ratings on the original class A-1, B-1,
C, D, and E debt following payment in full on the March 20, 2025,
refinancing date. S&P also affirmed its ratings on the class A-2
and B-2 debt, which were not refinanced.
The replacement debt was issued via a supplemental indenture, which
outlines the terms of the replacement debt. According to the
supplemental indenture, the non-call period was extended to Dec.
20, 2025, for the refinanced debt.
On a standalone basis, the results of the cash flow analysis
indicated a lower rating on the class E-R debt. S&P Said, "Given
the overall credit quality of the portfolio and the passing
coverage tests, we assigned a 'BB- (sf)' rating on the class E-R
debt (the same rating as the class E debt prior to withdrawal –-
see ratings list below). We will continue to review whether, in our
view, the ratings assigned to the debt remain consistent with the
credit enhancement available to support them and take rating
actions as we deem necessary."
Replacement And Original Debt Issuances
Replacement debt
-- Class A-1-R, $286.000 million: Three-month CME term SOFR +
1.05%
-- Class B-1-R, $46.25 million: Three-month CME term SOFR + 1.50%
-- Class C-R(deferrable), $30.000 million: Three-month CME term
SOFR + 1.90%
-- Class D-R(deferrable), $30.000 million: Three-month CME term
SOFR + 2.70%
-- Class E-R (deferrable), $19.500 million: Three-month CME term
SOFR + 4.60%
Original debt
-- Class A-1, $286.000 million: Three-month term SOFR + 1.26161%
-- Class A-2, $30.000 million: 2.2430%
-- Class B-1, $46.250 million: Three-month term SOFR + 1.76161%
-- Class B-2, $17.750 million: 3.0360%
-- Class C(deferrable), $30.000 million: Three-month term SOFR +
2.06161%
-- Class D(deferrable), $30.000 million: Three-month term SOFR +
2.91161%
-- Class E(deferrable), $19.500 million: Three-month term SOFR +
6.57161%
-- Subordinated notes, $48.525 million: NR
S&P said, "Our review of this transaction included a cash flow
analysis, based on the portfolio and transaction data in the
trustee report, to estimate future performance. In line with our
criteria, our cash flow scenarios applied forward-looking
assumptions on the expected timing and pattern of defaults and the
recoveries upon default under various interest rate and
macroeconomic scenarios. Our analysis also considered the
transaction's ability to pay timely interest and/or ultimate
principal to each of the rated tranches. The results of the cash
flow analysis (and other qualitative factors, as applicable)
demonstrated, in our view, that the outstanding rated classes all
have adequate credit enhancement available at the rating levels
associated with the rating actions.
"We will continue to review whether, in our view, the ratings
assigned to the debt remain consistent with the credit enhancement
available to support them and take rating actions as we deem
necessary."
Ratings Assigned
Thompson Park CLO Ltd./Thompson Park CLO LLC
Class A-1-R, $286.000 million: AAA (sf)
Class B-1-R, $46.250 million: AA (sf)
Class C-R, $30.000 million: A (sf)
Class D-R, $30.000 million: BBB- (sf)
Class E-R, $19.500 million: BB- (sf)
Ratings Withdrawn
Thompson Park CLO Ltd./Thompson Park CLO LLC
Class A-1 to NR from 'AAA (sf)'
Class B-1 to NR from 'AA (sf)'
Class C to NR from 'A (sf)'
Class D to NR from 'BBB- (sf)'
Class E to NR from 'BB- (sf)'
Ratings Affirmed
Thompson Park CLO Ltd./Thompson Park CLO LLC
Class A-2: 'AAA (sf)'
Class B-2: 'AA (sf)'
Other Debt
Thompson Park CLO Ltd./Thompson Park CLO LLC
Subordinated notes, $48.525 million: NR
NR--Not rated.
TITANIUM HOLDINGS: Case Summary & Three Unsecured Creditors
-----------------------------------------------------------
Debtor: Titanium Holdings LLC
9811 W Charleston Blvd
Las Vegas, NV 89117
Chapter 11 Petition Date: March 20, 2025
Court: United States Bankruptcy Court
District of Nevada
Case No.: 25-11509
Debtor's Counsel: David A. Riggi, Esq.
RIGGI LAW FIRM
7900 W Sahara Ave Suite 100
Las Vegas NV 89117
Email: riggilaw@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by John Compagno, in his capacity as
member-manager.
A complete copy of the petition, which contains a list of the
Debtor's three unsecured creditors, can be accessed for free on
PacerMonitor at:
https://www.pacermonitor.com/view/P7RZN6I/TITANIUM_HOLDINGS_LLC__nvbke-25-11509__0001.0.pdf?mcid=tGE4TAMA
TROLL ENTERPRISES: Seeks to Hire Five Star Real Estate as Realtor
-----------------------------------------------------------------
Troll Enterprises, Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Michigan to employ Five Star Real
Estate Realtor as its realtor.
The Debtor needs a realtor to sell its property located at 10005
Hartland Road, Turone Two, Michigan.
The firm will receive a commission of 5 percent of the property's
purchase price.
Pakap Crist Dwin, a broker at Five Star Real Estate, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Pakap Crist Dwin
Five Star Real Estate Realtor
2417 Showtime Dr.
Lansing MI 48912
Telephone: (517) 894-2641
About Troll Enterprises
Troll Enterprises, Inc. filed its Chapter 11 petition (Bankr. E.D.
Mich. Case No. 25-32448) on December 30, 2024, listing under $1
million in both assets and liabilities.
Judge Joel D. Applebaum oversees the case.
George E. Jacobs, Esq., serves as the Debtor's counsel.
US 24 TRUCK: Seeks to Tap Kroger, Gardis & Regas as Legal Counsel
-----------------------------------------------------------------
US 24 Truck and Trailer Report Co. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Indiana to employ
Kroger, Gardis & Regas, LLP as bankruptcy counsel.
The firm will provide the following services:
(a) prepare filings and applications and conduct examinations
necessary to the administration of this matter;
(b) advise regarding the Debtor's rights, duties, and
obligations;
(c) perform legal services associated with and necessary to
the day-to day operations of the business;
(d) negotiate, prepare, confirm, and consummate a plan of
reorganization; and
(e) take any and all other necessary action incident to the
proper preservation and administration of the estate in the conduct
of the Debtor's business.
The firm's counsel and staff will be paid at these rates:
Weston Overturf, Partner $450
Anthony Carreri, Associate $375
Jason Mizzell, Associate $375
Deidre Gastenveld, Paralegal $195
Kenyatta Peerman, Paralegal $175
Prior to the petition date, the Debtor provided the firm a retainer
in the amount of $12,500.
Mr. Overturf disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Weston E. Overturf, Esq.
Kroger, Gardis & Regas, LLP
111 Monument Circle, Suite 900
Indianapolis, IN 46204
Telephone: (317) 777-7443
Email: woverturf@kgrlaw.com
About US 24 Truck and Trailer Repair Co.
US 24 Truck and Trailer Repair Co. offers a comprehensive range of
services for trucks and trailers, including mobile repair services,
tire and reefer repair, computer diagnostics, electrical repairs,
air conditioning service, suspension and hydraulics maintenance,
brakes and air leak fixes, engine repairs, and more.
US 24 Truck and Trailer Repair Co. sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Ind. Case No. 25-40056) on
March 10, 2025. In its petition, the Debtor reports total assets of
$1,236,313 and total liabilities of $90,033.
Kroger, Gardis & Regas, LLP serves as the Debtor's bankruptcy
counsel.
VISION2SYSTEMS LLC: NorthRidge Church Appointed to Creditors Panel
------------------------------------------------------------------
The U.S. Trustee for Region 6 appointed NorthRidge Church as
additional member of the official committee of unsecured creditors
in the Chapter 11 case of Vision2Systems, LLC.
Meanwhile, The Crossing Church has been removed from the committee.
As of March 13, the members of the committee are:
1. Christ Presbyterian Church
c/o Timothy Bettenga and Mark Paetznick
6901 Normandale Road
Edina, MN 55435-1599
(952) 920-8515
Courtneym@cpcedina.org
2. Christ's Church of Oronogo
c/o Alan R. Stanley
22145 Kafir Road
Oronogo, MO 64855-9141
(417) 673-3945
Alan.Stanley@cco.church
3. Mitchell Road Presbyterian Church
c/o Ted Dankovich
207 Mitchell Road
Greenville, SC 29615
(864) 268-2218
Tdankovich@mitchellroad.org
4. Mobberly Baptist Church
c/o Andrew Hill
625 East Loop 281
Longview, TX 75605-5004
(903) 663-3100
Andyh@mobberly.org
5. One Church Home
c/o Shane Ecklund
1091 Highway 96 N.
Fairview, TN 37062
(615) 266-6122
shane@onechurchhome.com
6. Saddleback Valley Community Church
c/o Karyn Johnson
1 Saddleback Pkwy
Lake Forest, CA 92630-8700
(949) 609-8047
Karynj@saddleback.com
7. NorthRidge Church
c/o Carrie Cadeau
49555 N. Territorial Road
Plymouth, MI 48170
(734) 233-3683
ccadeau@northridgechurch.com
About Vision2systems LLC
Founded in 2012, Vision2Systems LLC is a software company based in
Dallas, Texas, which provides online giving and membership
management platforms tailored for churches. The platform offers
solutions for accounting, donations, event planning, and overall
church management.
Vision2Systems sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 25-40583) on February
19, 2025. In its petition, the Debtor reported between $1 million
and $10 million in both assets and
liabilities.
The Debtor is represented by Jason P. Kathman, Esq., at Spencer
Fane, LLP.
VISTA PARTNERS: Seeks to Sell Newood Assets at Auction for $100K
----------------------------------------------------------------
Vista Partners Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Oregon, to sell Newood Assets in an Auction,
free and clear of liens, interests, and encumbrances.
The Debtor's property that is up for sale is its Newood Mfg.
division, comprised of all payment rights, accounts receivable,
open orders and all personal and intellectual property (Newood
Assets).
The Assets will not include cash, security deposits, or other cash
equivalents, certain other estate claims and causes of action, and
equipment including Homag CNC machine, Gooseneck curtain trailer
and any business assets not part of the Debtor's Newood Division.
The Debtor seeks to assume and assign to the buyer the lease for
the premises upon which the Newood Assets are located.
The Debtor selects a new company to be formed (Newco) to serve as
the stalking horse bidder at the Auction.
-- The purchase price for the Newood Assets is $100,000.00, plus
the face value of the Newood Division's outstanding accounts
receivable, as of the date of the transfer of assets.
-- The remaining balance on Dorman Construction’s claim in the
amount of $296,801 shall be assigned to Newco. Dorman's claim is
secured by the equipment that is being sold and transferred to
Newco.
-- The sale is contingent upon the successful assumption and
assignment of the Lease to Newco.
-- The Debtor shall sublet a portion of the Premises to continue
its craft wood operations for approximately six months (ending
October 31, 2025) for $10,000.00 per month.
-- Time is of the essence.
-- Sale to close by April 30, 2025.
The Debtor proposes to hold the Auction and for the Court to
conduct the sale hearing on April 11, 2025 and the following
timeline:
Sale Objection Deadline on April 1, 2025
Bid Deadline on April 4, 2025
Sale Hearing on April 11, 2025
Sale Closing No later than April 30, 2025
The Debtors believe that the Bid procedures are appropriate when
they enhance bidding and are designed to maximize sale proceeds
under the particular circumstances of a reorganization case.
About Vista Partners Inc.
Vista Partners Inc., doing business as Petersen - Arne, PA
Distribution, Accent Design, Leisure Arts, and Newood MFG, provides
a comprehensive multi-service solution for the sewing and crafting
industry's distribution, shipping, and fulfillment needs. Founded
in 1959, the Company is the only major craft distributor on the
West Coast, perfectly positioned to distribute product originating
from a global market to a wide variety of retailers. Offering a
diverse selection of products, PA Distribution covers everything
from essential creative supplies to trending seasonal and holiday
items. The Company's services are tailored to meet the unique
demands of the crafting and sewing industry, ensuring reliable
inventory management and supply chain solutions.
Vista Partners Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ore. Case No. 25-60597) on March 5,
2025. In its petition, the Debtor reports total assets of
$35,932,947 and total liabilities of $3,651,251.
Honorable Bankruptcy Judge Thomas M. Renn handles the case.
The Debtor is represented by Joseph A.G. Sakay, Esq., at Buchalter,
A Professional Corp.
WASH MULTIFAMILY: S&P Affirms 'B-' ICR on Continued Deleveraging
----------------------------------------------------------------
S&P Global Ratings affirmed all of its ratings on North American
outsourced laundry services provider WASH Multifamily Acquisition
Inc. (dba WASH), which includes its 'B-' issuer credit rating.
The stable outlook reflects S&P's expectation that WASH will
deliver mid-single digit organic revenue growth from increasing
fleet size and continued upward price adjustments, while
maintaining solid utilization levels. S&P forecasts the company
will maintain low capital expenditure (capex) for the next 12
months driving modestly positive reported free operating cash flow
(FOCF) generation, while keeping adjusted leverage in the low-4x
area.
S&P said, "Despite improving credit metrics, our views on WASH
remain constrained by its need to address its shortening debt
maturity profile and the associated refinancing risk. WASH's has
made progress delevering and enhancing cash flow generation. As of
Sept. 30, 2024, S&P Global Ratings-adjusted leverage for the
trailing 12 months was approximately 4.8x, an improvement from 5.4x
during the same period last year. This leverage level, which is
below 5.0x, is better than we would typically expect for WASH's
current rating level."
However, WASH's current capital structure presents significant
refinancing risk. The company has a revolving credit facility with
$59 million outstanding as of Sept. 30, 2024, due Jan. 14, 2026,
and $850 million in fixed-rate senior secured notes maturing on
April 15, 2026. S&P does not believe the company would be able to
repay these balances, which far exceed WASH's cash on hand and our
expectations for WASH's cash flow generation up to that time,
making refinancing imperative. While the reduced cash interest
burden from WASH's existing 5.75% fixed-rate senior secured notes
has bolstered cash flow generation, enabling the company to
navigate the current high-interest-rate environment and maintain
positive FOCF in the upper-single digit percentage area, the
prevailing debt market conditions and persistently high interest
rates could impede the company's ability to manage its debt
maturities effectively.
WASH has continued to drive solid organic growth through increasing
machine count and implementing price lifts. For the three- and
nine-month periods ended Sept. 30, 2024, WASH's revenues rose by
5.5% and by 6.6%, respectively, compared to the same periods the
previous year. These results have slightly exceeded our prior
forecasts, driven by the company's ongoing expansion of its fleet
and strategic price increases across its offerings. Much of the
2024 price increase was facilitated by the digitization of its
fleet, which is now over 55% digitized. S&P said, "We expect its
remote price changes will enable modest increases in 2025, although
we believe these will be implemented modestly to avoid significant
disruption of utilization levels. Combining price lifts with our
expectation of low-single digit growth in fleet size, we anticipate
WASH will outpace overall GDP growth rates and reach 2025 organic
revenue growth near 5%. However, we expect that growth rate to
moderate in subsequent years to maintain customer retention."
S&P said, "We project continued, albeit tapering, improvements in
both profitability and cash flow generation. WASH's S&P Global
Ratings adjusted EBITDA margin increased to 31.1% for the 12month
period ended Sept. 30, 2024, reflecting an improvement of
approximately 210 basis points (bps) compared to the same period
last year. This improvement is attributable to effective price
increases, increasing operating leverage, and the company's
cost-reduction plan, which have also identified additional
cost-saving opportunities to be implemented in 2025. We expect cost
improvements and enhancements in fleet management, continued
benefits of digitization, and the roll-off of one-time expenses
from 2024, to contribute to an EBITDA margin increase of about 30
bps in 2025. With interest payments kept stable on account of its
fixed-rate notes, WASH generated FOCF of $94.7 million in the 12
months ended Sept. 30, 2024, up from $79.4 million in the same
period last year. This cashflow growth was driven by profitability
improvements and effective management of capex. by deploying a
greater number of refurbished machines, which has been supportive
of its cash flow generation in the recent year.
"The stable outlook reflects our expectation that WASH will
successfully address the maturities of its revolver and senior
secured notes over the coming months, while delivering mid-single
digit organic revenue growth from increasing fleet size and
continued upward price adjustments, while maintaining solid
utilization levels. We forecast the company will maintain low capex
for the next 12 months driving modestly positive reported FOCF
generation, while keeping adjusted leverage in the low-4x area."
S&P could lower its rating on WASH if it views its capital
structure as unsustainable or its liquidity is inadequate. This
could occur if:
-- The company encounters any delays or difficulties in the coming
months extending it revolver and senior note maturities, due Jan.
14, 2026, and April 15, 2026, respectively. Such difficulties would
most likely be due to market conditions.
-- The company generates negative reported free cash flow near or
below the mid-single digit percent area. Under this scenario, S&P
would expect the company's profitability to decline sharply due to
contract losses, operational missteps, and higher-than-expected
capital spending.
The company would need to successfully address its maturities
within the next few quarters before S&P would consider any upside
rating action. After the maturities are handled, S&P could consider
a higher rating if it expects:
-- Stable revenue and EBITDA growth that would allow WASH to
maintain leverage below 5x;
-- S&P Global Ratings-adjusted free cash flow-to-debt ratio under
its updated capital structure in the low-double digit percent area
to allow a buffer for fluctuation of the company's capital spending
requirements; and
-- The company's financial policy will continue to support metrics
in these ranges.
WATER ENERGY: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Water Energy Services, LLC
312 Pearl Pkwy, Unit 2405
San Antonio, TX 78215-1295
Business Description: Water Energy Services, LLC (WES) provides
decentralized water and wastewater solutions
for the energy sector. The Company's
services include water logistics, water
recycling, carbon sequestration, frac water
treatment, oil reclamation, fluid
containment, and saltwater disposal. In
September 2021, WES expanded by acquiring
the FMS Business from Key Energy Services,
gaining assets and expertise in the Permian
Basin and Gulf Coast regions.
Chapter 11 Petition Date: March 21, 2025
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 25-50539
Judge: Hon. Michael M Parker
Debtor's Counsel: Charlie Shelton, Esq.
HAYWARD PLLC
7600 Burnet Road, Suite 530
Austin TX 78757
Tel: (737) 881-7100
E-mail: cshelton@haywardfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Rodolfo Concha as authorized signatory.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/PTTGWNY/Water_Energy_Services_LLC__txwbke-25-50539__0002.0.pdf?mcid=tGE4TAMA
A complete copy of the petition can be accessed for free on
PacerMonitor at:
https://www.pacermonitor.com/view/PVXJIMA/Water_Energy_Services_LLC__txwbke-25-50539__0001.0.pdf?mcid=tGE4TAMA
WATER ENERGY: Seeks Chapter 11 Bankruptcy in Texas
--------------------------------------------------
On March 21, 2025, Water Energy Services LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Western District
of Texas. According to court filing, the Debtor reports between
$10 million and $50 million in debt owed to 100 and 199
creditors. The petition states funds will be available to unsecured
creditors.
About Water Energy Services LLC
Water Energy Services LLC is a San Antonio-based company operating
in the oil and gas extraction industry.
Water Energy Services LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-50539) on March
21, 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 Michael M. Parker handles the case.
The Debtor is represented by:
Herbert C Shelton, II, Esq.
Hayward PLLC
7600 Burnet Road Suite 530
Austin, TX 78757
Phone: 737-881-7100
Fax: 737-881-7100
WEX INC: Fitch Corrects Feb. 25 Ratings Release
-----------------------------------------------
Fitch Ratings issued a correction of a release on WEX Inc. (WEX),
Wright Express International Holdings Limited and WEX Card Holdings
Australia Pty Ltd originally published on Feb. 25, 2025. It
includes the Criteria Variation disclosure that was omitted from
the original release.
The amended release is as follows:
Fitch Ratings has assigned a first-time Long-Term Issuer Default
Rating (IDR) of 'BB+' to WEX Inc. (WEX), Wright Express
International Holdings Limited and WEX Card Holdings Australia Pty
Ltd. Fitch has also assigned 'BBB-' ratings with Recovery Ratings
of 'RR2' to the companies' co-issued secured revolver, existing
term loans and proposed $500 million incremental term loan B
issuance due 2032. In addition, Fitch has assigned 'BB+'/'RR4'
ratings to WEX's proposed $500 million unsecured notes due 2033.
The Rating Outlook is Stable.
The ratings reflect WEX's strong market position in the fuel charge
card and fleet management services space, its growth trajectory and
strategic diversification efforts. The ratings also consider the
company's capacity to generate FCF and its credit profile
sensitivity to fuel price fluctuations. Fitch anticipates that
WEX's deconsolidated leverage will remain within the 3.0x-4.0x
range. The company's banking subsidiary bolsters the profitability
of the consolidated profile and adds funding flexibility.
Key Rating Drivers
Cyclical Profile: WEX is exposed to cyclical sectors, such as
travel and logistics, which depend on discretionary consumer
spending, particularly in the U.S. where the company derives just
under 90% of its revenue. This exposure affects the mobility
business, which forms around 50% of consolidated revenue, and the
corporate payments segment, which accounts for 20%.
Within corporate payments, WEX operates a virtual card business
targeted at online travel agents, as well as B2B accounts payable
solutions and other services. Around 20%-30% of its consolidated
revenue is exposed to fuel price fluctuations, which adds to
revenue and cash flow volatility in the mobility segment.
Solid Fuel Card Position: WEX's strong market position in the fuel
charge card and fleet management services space, which form the
lion's share of revenue and profitability, supports the ratings.
WEX operates a closed-loop payments network for commercial and
government fleets (e.g. heavy-duty trucks and light commercial
vehicles) with about 20 million vehicles globally. The company has
strong market share in the U.S. The business has long-term
strategic relationships, multi-year contracts primarily with
merchant establishments and large fleet operators with strong
contract renewal rates.
Benefits Business Reduces Volatility: WEX expanded its health
business by buying $3 billion of Health Savings Account (HSA)
assets in the U.S. in 2021 and held custodial HSA assets of $4.4
billion at end-2024. It generates steady monthly servicing revenue
on more than 20 million accounts. WEX also earns an interest
differential on these assets, which serves as a hedge to the
funding costs of extending credit in the mobility and corporate
payments segments. The benefits business should continue to grow
faster than these two segments, allowing WEX to diversify from its
fuel card and fleet management business.
Solid Cash Flow Through Cycle: WEX consistently generates
substantial cash flow across the entire economic cycle,
demonstrating cash flow-based metrics that align with those of more
highly rated entities. Fitch expects WEX to maintain robust
EBITDA-to-FCF conversion rates, with expected FCF margins averaging
more than 10% in the next three years. Moreover, Fitch projects FFO
margins, which exclude the effects of fuel price fluctuations in
working capital, to average about 25%. These metrics are in line
with those of companies typically rated in the strong
investment-grade categories.
Financing from WEX Bank: WEX finances a large portion of its
operational needs through its wholly owned WEX Bank, whereby the
bank takes on brokered deposits (CDs, money market funds) as well
as competitively priced loans and uses these to fund credit card
and accounts receivables. The bank provides an alternative source
of funding to WEX besides debt or receivable securitizations.
Bank Deconsolidation Enhances Credit Analysis: WEX's consolidated
EBITDA leverage was 4.0x at end-2024 and 3.3x on a deconsolidated
basis applying Fitch's captive finance adjustment plus dividends
from the bank. The deconsolidation of WEX bank ensures the bank's
risks are reflected in its assessment of the corporate entity and
facilitates comparability between similar corporate issuers without
financial services operations.
Share Repurchase Increases Leverage: The company plans to fund a
partial tender offer for up to $750 million of its stock with the
proceeds from its proposed issuances, with the remaining $250
million mainly used to reduce revolver borrowings. The offer
follows WEX's repurchase of $650 million of shares in the open
market in 2024, which was funded through a mix of FCF and debt.
Fitch projects deconsolidated leverage to rise slightly above the
4.0x negative threshold in 2025, but Fitch expects it to decrease
to below 4.0x in 2026.
Derivation Summary
Fitch compares WEX's business profile and metrics to various rated
issuers in the fintech and payments industries.
WEX faces direct fuel card and fleet management services
competition from Corpay Inc., which is a competitor of similar size
in this segment although it has a larger revenue base on a
consolidated basis. Both companies have diversified away from fuel
cards by expanding their corporate payments businesses and
investing heavily in M&A to expand their offerings and
capabilities. To a lesser extent, they are subject to competition
from U.S. Bancorp's (A+/Stable) Voyager program. Corpay operates
with lower leverage than WEX.
Fitch-rated entities in this space are typically larger than WEX.
Block, Inc.'s (BB+/Positive) revenue base is much larger, while the
company is in the process of increasing its EBITDA, so that the gap
with WEX will likely widen over the coming years, which could cause
Block's leverage to strengthen to below 3.0x. Corporate payments
competitor Global Payments, Inc. (GPN; BBB/Stable) has market
leadership in its core businesses, is more diversified and has
predictable cash flow. GPN's cash flow profitability is higher
while its EBITDA leverage is projected to be lower than WEX's.
Boost Newco Borrower, LLC (dba Worldpay; BB/Stable), operates with
higher leverage, is majority private equity owned and its FCF
margin is lower than WEX's. Euronet Worldwide, Inc. (BBB/Stable) is
well positioned in the 'BBB' rating category by most metrics (e.g.,
leverage, margins, growth) relative to large peers in the fintech
and payments space. Its smaller size relative to WEX is offset by
its strong market position in each of its business segments,
consistent FCF generation, and conservative balance sheet
management.
Key Assumptions
- Low single-digit organic revenue growth in 2025, mid -single
digit growth in subsequent years;
- EBITDA margins remain in the low-40% range;
- Deconsolidated EBITDA plus dividends of $1-$1.1 billion or
higher;
- Annual capex of around 6% of revenue;
- Share repurchases of up to $750 million in 2025 with buyback
activity being the primary use of cash flow in 2026;
- Benchmark interest rates in the 4% area.
Recovery Analysis
Fitch considers the senior secured revolver and term loan
facilities as category 2 first lien instruments given the presence
of bank deposits and securitized debt. Thus, the secured
obligations are capped at 'RR2', with a one-notch uplift from the
IDR.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fundamental shifts in the business that negatively affect
revenue, EBITDA and/or FCF prospects;
- Expectations of deconsolidated EBITDA leverage plus dividends,
which excludes WEX Bank, sustained above 4.0x
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Greater business and end markets diversification and/or scale
that leads to more stable cash flow;
- Expectations of deconsolidated EBITDA leverage plus dividends,
which excludes WEX Bank, sustained below 3.0x;
- A public commitment to maintain an investment grade capital
structure.
Liquidity and Debt Structure
WEX's liquidity is supported by solid cash flow generation from its
various businesses, revolver availability, and cash reserves. Fitch
estimates that the company generates about $400 million to $500
million of FCF annually, normalized for working capital, primarily
funded by WEX Bank through Federal Home Loan Bank (FHLB) loans and
brokered deposits. As of 4Q24, WEX had $655 million undrawn from
its $1.6 billion senior secured revolver and held $596 million in
cash, of which $80 million was corporate cash.
Over the past decade, WEX's FCF has been volatile, ranging from
nearly $800 million in 2020 to a loss of about $200 million in
2016. The company generated slightly more than $300 million in 2024
and $700 million in 2023. Much of this volatility is due to working
capital swings related to the total dollar amount of extended
credit.
The mobility segment is WEX's most working capital-intensive
segment, followed by corporate payments. These segments' funding
needs are driven by demand for payment processing services, which
can be cyclical due to exposure to the travel sector and are
influenced by fuel prices, which can sway the dollar value of
processed transactions. Typically, periods of economic expansion
require more working capital as the amount of extended credit
rises. Network transactions carry an increased dollar value during
rising fuel prices, increasing the need for working capital.
As of 4Q24, WEX had $4.5 billion of consolidated debt. The debt
primarily consists of $1.4 billion in term B-1 loans, $906 million
borrowed under the revolver, $866 million in term A loans, and $87
million of securitized debt. Additionally, there are $1.1 billion
of FHLB loans at the bank. WEX does not face material debt
maturities until 2028, when its term loans are due.
Issuer Profile
WEX provides a variety of corporate payment solutions that serve
commercial and government fleet/vehicle operators, corporate
travel, and corporate health and employee benefit departments.
Criteria Variation
Fitch deconsolidates WEX's bank operations using Adjustment 9
(Corporate Criteria - Adjustments for Financial Services
Activities) to accurately reflect their risks and enhance
comparability. This adjustment treats the bank's activities as
separate entities, assuming a self-sustaining capital structure
supported by a hypothetical capital injection if needed. It focuses
on whether the assets are financeable by third parties, preventing
the bank's risks from directly impacting WEX's credit profile.
Fitch then calculates leverage by replacing the bank's EBITDA with
cash dividends from the bank, which is a variation from Adjustment
9. This approach recognizes that the bank's profitability offers
less direct benefit to the corporate rating due to reduced cash
fungibility. By considering only consistent dividends in its
forecast, Fitch provides a clearer picture of WEX's financial
health and stability, enhancing the overall assessment of the
corporate entity's financial standing.
Date of Relevant Committee
24 February 2025
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery
----------- ------ --------
WEX Card Holdings
Australia Pty Ltd. LT IDR BB+ New Rating
senior secured LT BBB- New Rating RR2
senior secured LT BBB- New Rating RR2
Wright Express
International
Holdings Limited LT IDR BB+ New Rating
senior secured LT BBB- New Rating RR2
senior secured LT BBB- New Rating RR2
WEX Inc. LT IDR BB+ New Rating
senior
unsecured LT BB+ New Rating RR4
senior secured LT BBB- New Rating RR2
senior secured LT BBB- New Rating RR2
WILLIAMS SCOTSMAN: Fitch Gives BB-(EXP) Rating to $500MM Sec. Notes
-------------------------------------------------------------------
Fitch Ratings expects to assign a 'BB-(EXP)' rating to Williams
Scotsman, Inc.'s proposed issuance of $500 million of senior
secured notes. The fixed rate of interest and the maturity date
will be determined at the time of issuance. Williams Scotsman is a
wholly owned subsidiary and debt-issuing entity of WillScot
Holdings Corporation (WillScot).
Key Rating Drivers
Equal Ranking: The expected rating is equalized with Williams
Scotsman's existing senior secured debt rating as the new notes
will rank equally in the capital structure. The secured debt rating
is one notch below WillScot and Williams Scotsman's Long-Term
Issuer Default Ratings (IDRs) of 'BB', reflecting the structural
subordination of the secured notes to the company's asset-based
(ABL) credit facility.
Leverage Neutral: Fitch does not expect the debt issuance to affect
WillScot's leverage profile. Proceeds from the issuance, together
with a draw on the ABL, will be used to redeem the company's senior
secured debt coming due in June 2025.
Weak Tangible Equity: WillScot's leverage, calculated as total debt
to tangible equity, is not measurable given its negative tangible
equity balance at year-ended Dec. 31, 2024 (YE24). Goodwill and
intangibles, driven by the company's numerous acquisitions, were
$1.5 billion at YE24. Fitch does not expect positive tangible
equity to be restored over the Outlook horizon.
Instead, as a complementary metric, Fitch considers WillScot's cash
flow leverage (gross debt to adjusted EBITDA), which was 3.4x, pro
forma for the debt issuance, at YE24. Fitch expects leverage will
remain within management's targeted range of 3.0x-3.5x (on a net
debt to EBITDA) basis over the medium term.
Established Franchise: WillScot's ratings are supported by its
established franchise, leading market position as a provider of
modular workspace and storage space solutions, and experienced
management team. The ratings also reflect the company's strong
profitability, appropriately managed residual value risk and
adequate liquidity.
Secured Funding Profile: The ratings are constrained by WillScot's
limited funding flexibility arising from its fully secured funding
profile and relatively weak tangible balance sheet capitalization.
Adequate Liquidity: The Stable Outlook reflects Fitch's expectation
that the company will maintain adequate liquidity resources to meet
operational needs and debt service obligations, report strong asset
quality metrics and relatively consistent profitability.
For more information on the key rating drivers and sensitivities
underpinning WillScot's ratings, see, Fitch Affirms WillScot at
'BB' Following Termination of Planned Merger; Outlook Stable, dated
Sept. 23, 2024.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Leverage sustained above the 3.5x on a debt to adjusted EBITDA
basis;
- Sustained deterioration in the adjusted EBITDA margin to 40% or
below;
- Significant decline in market share or weakening market
position;
- Deterioration in the liquidity profile, as evidenced by a decline
in adjusted EBITDA/interest expense below 4.0x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Maintenance of an adjusted EBITDA margin over 45%;
- Leverage maintained within the targeted range of 3x-3.5x debt to
adjusted EBITDA;
- Progress toward restoring a positive tangible equity balance;
- Enhancement of the liquidity profile, including an improvement in
EBITDA/interest expense of 5.0x or more on a sustained basis;
- Addition of an unsecured funding component approaching 10% of
total debt.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
Williams Scotsman's secured debt and expected debt ratings are one
notch below the Long-Term IDRs, reflecting the structural
subordination of the secured notes to the ABL credit facility.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The senior secured debt ratings are primarily sensitive to changes
in WillScot and Williams Scotsman's Long-Term IDRs and,
secondarily, to the relative recovery prospects of the notes. A
meaningful decrease in recovery prospects could result in the
secured debt rating being notched further from the IDR. Conversely,
the creation of a separate collateral pool for the secured notes,
which enhances recovery prospects, could result in an equalization
of the ratings.
SUBSIDIARY AND AFFILIATE RATINGS: RATING SENSITIVITIES
Williams Scotsman, Inc. and Williams Scotsman Holdings Corp. are
subsidiaries of WillScot Holdings Corporation and, as such, their
ratings are linked to the parent's Long-Term IDR.
The ratings of William Scotsman, Inc. and Williams Scotsman
Holdings Corp. are linked to the Long-Term IDR of WillScot Holdings
Corporation and would be expected to move in tandem.
Summary of Financial Adjustments
The Standalone Credit Profile (SCP) has been assigned in line with
the implied SCP.
The Business Profile score has been assigned below the implied
score due to the following adjustment reason: Historical and future
developments (negative).
The Asset Quality score has been assigned below the implied score
due to the following adjustment reason: Risk profile and business
model (negative).
The Earnings and Profitability score has been assigned below the
implied score due to the following adjustment reason: Historical
and future metrics (negative).
The Capitalization and Leverage score has been assigned above the
implied score due to the following adjustment reason:
Profitability, payouts and growth (positive).
The Funding, Liquidity and Coverage score has been assigned below
the implied score due to the following adjustment reason: Funding
flexibility (negative).
Date of Relevant Committee
20 September 2024
ESG Considerations
WillScot has an ESG Relevance Score of '4' for Management Strategy
which reflects execution challenges experienced with regards to the
failed McGrath merger and potential implications for the execution
on future strategic initiatives. 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
----------- ------
Williams Scotsman, Inc.
senior secured LT BB-(EXP) Expected Rating
WILLSCOT HOLDINGS: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of WillScot Holdings Corporation, and its subsidiaries
Williams Scotsman, Inc. and Williams Scotsman Holdings Corp.
(collectively WillScot) at 'BB'.
The Rating Outlook is Stable.
Fitch has also affirmed Williams Scotsman, Inc.'s senior secured
debt rating at 'BB-' and expected senior secured debt rating at
'BB-(EXP)'.
Key Rating Drivers
Established Franchise: WillScot's ratings reflect its established
franchise and leading market position as a provider of modular
office space and storage solutions, strong profitability,
appropriately managed residual value risk, adequate liquidity
profile, and experienced management team.
Limited Funding Flexibility: The ratings are constrained by
WillScot's limited funding flexibility because of its fully secured
funding profile and relatively weak tangible balance sheet
capitalization.
Appropriately Managed Residual Value (RV) Risk: WillScot
effectively manages RV risk through conservative depreciation
policies and the capitalization of costs associated with acquiring
and improving rental equipment.
The strong unit-level economics, including the standardized nature
and relatively long useful life of the modular offices and storage
containers, further mitigate this risk. This is evidenced by the
company's historical record of healthy margins on rental unit
sales. Even at the lowest, in 2019, the gain on sale dropped to
about 36% of the sale proceeds.
Strong Asset Quality: Fitch considers WillScot's asset quality to
be strong given the standardized nature and relatively long useful
life of its containers and modular office units, and its
conservative depreciation policies that limit residual value risk.
While the allowance for doubtful accounts was 22.1% of trade
receivables at the end of 4Q24, the company has taken zero
impairments on its leasing assets over the past four years.
In 2024, WillScot realized 48.4% residual value gains from sales
proceeds on the disposal of its containers and modular office
units, in line with 49.2% in 2023 and an average of 47.9% in
2021-2024.The company's portfolio is also adequately diversified,
with its top 50 customers comprising approximately 14% of revenues,
and with its three largest sub-sectors (professional services,
retail and wholesale trade, and non-residential general
contractors), representing 43% of its customer base, as of Dec. 31,
2024.
Solid Leasing Margin: WillScot's core profitability has been
supported by its high-margin, value-added products and services
(VAPS), and integration through its delivery, installation and
removal services. Excluding one-time items tied to the termination
of the McGrath RentCorp transaction and impairment of intangible
assets from the company's rebranding, pre-tax return on average
assets was 6.4% in 2024, down from 10.8% a year earlier, but above
the four-year average of 5.8% from 2021-2024.
Adjusted EBITDA margin was 43.4% in 2024, relatively in line with
44.4% in 2023 and compared favorably with the average of 42.9% in
2021-2024. Fitch expects WillScot to continue to report sound
profitability through the cycle, driven by strong core business
growth, enhanced scale, and the exit from non-core businesses.
Weak Tangible Equity: Leverage, calculated as total debt to
tangible equity, is not measurable given WillScot's negative
tangible equity balance at YE 2024 (Dec. 31, 2024). Goodwill and
intangibles, driven by the company's numerous acquisitions,
amounted to $1.5 billion at YE 2024. Fitch believes the company
will generate sufficient earnings to increase retained earnings
despite the newly announced $0.07 cent per share quarterly
dividend.
As a complementary metric, Fitch considers WillScot's cash flow
leverage (total debt to adjusted EBITDA), which was 3.4x at YE
2024. Management expects leverage to remain within the targeted
range of 3.0x to 3.5x (on a net debt to EBITDA basis). Adjusting
for operating lease liabilities, the cash flow leverage ratio was
3.7x at YE 2024.
Fully Secured Funding Profile: The company is fully reliant on
secured, wholesale resources for funding, which is viewed
negatively by Fitch as it limits financial flexibility,
particularly in times of stress. Secured debt, which accounted for
100% of total debt at YE 2024, was comprised of $1.6 billion drawn
under its ABL facility and $2.0 billion of senior secured notes
that mature between 2025 and 2031.
Adequate Liquidity and Coverage: Fitch views WillScot's liquidity
profile as adequate to meet its business and debt service needs. At
YE 2024, available liquidity consisted of $9 million of cash and
equivalents, and $1.6 billion on its ABL facility. The next term
debt maturity of $525 million is due in June 2025, which the
company is in the process of refinancing. Adjusted EBITDA to
interest expense was 4.6x for YE 2024 and averaged 5.5x in
2021-2024, which is consistent with Fitch's 'bb' category benchmark
range of 3.0x-6.0x.
Outlook Stable: The Stable Outlook reflects Fitch's expectation
that WillScot will maintain the leverage profile within
management's targeted range. The Outlook also reflects the
expectation that the company will maintain adequate liquidity
resources to meet operational needs and debt service obligations,
report strong asset quality metrics, and generate consistent
operating cash flows.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Leverage sustained above the 3.5x on a debt to adjusted EBITDA
basis;
- Sustained deterioration in the adjusted EBITDA margin to 40% or
below;
- Significant decline in market share or weakening market
position;
- Deterioration in the liquidity profile, as evidenced by a decline
in adjusted EBITDA/interest expense below 4.0x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Maintenance of an adjusted EBITDA margin over 45%;
- Sustained leverage ratio in the targeted range of 3.0x-3.5x
debt-to-adjusted EBITDA;
- Progress toward restoring a positive tangible equity balance;
- Enhancement of the liquidity profile, including an improvement in
EBITDA/interest expense of 5.0x or more on a sustained basis;
- Addition of an unsecured funding component above 10% of total
debt.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
WillScot's secured debt rating is one notch below the Long-Term
IDRs, reflecting the structural subordination of the secured notes
to the asset-based credit facility.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The senior secured debt rating is primarily sensitive to changes in
WillScot's Long-Term IDR and, secondarily, to the relative recovery
prospects of the notes. A meaningful decrease in recovery prospects
could result in the secured debt rating being notched further from
the IDR. Conversely, the creation of a separate collateral pool for
the secured notes, which enhances recovery prospects, could result
in an equalization of the ratings.
SUBSIDIARY AND AFFILIATE RATINGS: RATING SENSITIVITIES
The ratings of William Scotsman, Inc. and Williams Scotsman
Holdings Corp. are equalized with the Long-Term IDR of WillScot
Holdings and would be expected to move in tandem.
ADJUSTMENTS
The Standalone Credit Profile (SCP) has been assigned in line with
the implied SCP.
The Business Profile score has been assigned below the implied
score due to the following adjustment reason: Business model
(negative).
The Asset Quality score has been assigned below the implied score
due to the following adjustment reason: Risk profile and business
model (negative).
The Earnings and Profitability score has been assigned below the
implied score due to the following adjustment reason: Revenue
diversification (negative).
The Capitalization and Leverage score has been assigned above the
implied score due to the following adjustment reason:
Profitability, payouts and growth (positive).
The Funding, Liquidity and Coverage score has been assigned below
the implied score due to the following adjustment reason: Funding
flexibility (negative).
ESG Considerations
WillScot has an ESG Relevance Score of '4' for Management Strategy,
which reflects execution challenges related to the failed McGrath
merger and the potential implications for future strategic
initiatives. 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 Prior
----------- ------ -----
Williams Scotsman, Inc. LT IDR BB Affirmed BB
senior secured LT BB- Affirmed BB-
senior secured LT BB-(EXP)Affirmed BB-(EXP)
WillScot Holdings
Corporation LT IDR BB Affirmed BB
Williams Scotsman
Holdings Corp. LT IDR BB Affirmed BB
WILLSCOT HOLDINGS: Moody's Rates New Senior Secured Notes 'B2'
--------------------------------------------------------------
Moody's Ratings has assigned a B2 backed senior secured rating to
the new notes to be issued by WillScot Holdings Corporation's
(WillScot) subsidiary, Williams Scotsman, Inc. (Williams Scotsman).
WillScot's Ba3 corporate family rating and the B2 senior secured
ratings of Williams Scotsman and William Scotsman International
Inc. remain unchanged. Williams Scotsman's outlook is stable.
RATINGS RATIONALE
The B2 backed senior secured rating reflects the notes' priority
ranking in WillScot's capital structure, as well as the
preponderance and capacity of borrowings under the company's
asset-based revolving facility. The new notes will rank pari passu
with the $500 million existing notes due 2028, $500 million
existing notes each due 2029 and $500 million existing notes due
2031. WillScot plans to use the net proceeds from new notes
issuance, together with approximately $33.0 million of anticipated
additional borrowing under the $3.7 billion asset-based revolving
facility expiring June 30, 2027, to repay $526.5 million of
existing notes due 2025 and to pay related fees and expenses.
WillScot's CFR reflects the company's commitment to good liquidity
and a balanced capital allocation strategy, maintaining its net
debt-to-EBITDA target leverage range of 2.5x-3.25x over the next 3
to 5 years. WillScot benefits from a sound liquidity profile,
whereby the company can maintain its free cash flow during economic
uncertainty by reducing the refurbishment of modular units and the
purchase of new units because the asset's lifecycle is relatively
long. Liquidity is also supported by $1.6 billion of availability
on its asset-based revolving facility expiring June 30, 2027.
WillScot has been able to manage its operating performance despite
the headwinds from various sectors, including non-residential
construction, retail and wholesale trade, partially through cost
reductions. Nonetheless, Moody's expects that low unit utilization
rates will continue to weigh on earnings in the next 12 months. In
2024, WillScot's utilization rates in the modular segment declined
to 61.9% (from 64.7% in 2023 and 67.5% in 2022) and in the storage
segment to 60.0% (from 73.2% in 2023 and 86.9% in 2022). Moody's
expects, however, that the company will continue to benefit from
the strength of some of its end markets, including manufacturing
and infrastructure, event-driven projects, and better penetration
of Value Added Products (VAPS) and differentiated customer
service.
The stable outlook reflects Moody's expectations that WillScot will
maintain a sound liquidity position and debt-to-EBITDA leverage
within its target range over the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The ratings could be upgraded if WillScot continues to demonstrate
strong financial performance, whereby Moody's expects long-term
through-the-cycle profitability, as measured by net income to
average managed assets, will average at least 4.0%. The company
would, however, need to reduce and maintain leverage, as measured
by debt-to-EBITDA, below 3.0x, as well as improve its liquidity
profile by reducing its reliance on secured debt.
The ratings could be downgraded if the company's financial
performance substantially deteriorates, such that its
profitability, as measured by net income to average managed assets,
falls and remains below 2.0%. Acquisitions or other actions that
increase debt-to-EBITDA leverage above 4.5x, or a deterioration in
liquidity could also result in a downgrade.
WillScot Holdings Corporation (NASDAQ: WSC) is a leading provider
of modular space and portable storage leasing and sales with
locations across the US, Canada and Mexico. Through its 2018
acquisition of ModSpace, the only other national provider, WillScot
became the largest provider of modular space leasing in the US. In
2020, WillScot acquired Mobile Mini, Inc., a leading provider of
portable storage solutions in North America. Revenue for the 12
months ended December 31, 2024 was approximately $2.4 billion.
The principal methodology used in this rating was Finance Companies
published in July 2024.
WINDRIDGE A2A: Seeks Chapter 11 Bankruptcy in Texas
---------------------------------------------------
On March 17, 2025, Windridge A2A Developments LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Texas. According to court filing, the Debtor reports between
$1 million and $10 million in debt owed to 1,000 and 5,000
creditors. The petition states funds will not be available to
unsecured creditors.
About Windridge A2A Developments LLC
Windridge A2A Developments LLC is a single asset real estate
debtor, as defined in 11 U.S.C. Section 101(51B).
Windridge A2A Developments LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40920) on
March 17, 2025. In its petition, the Debtor reports estimated
assets up to $50,000 and estimated liabilities between $1 million
and $10 million.
The Debtor is represented by:
Michael P. Cooley, Esq.
REED SMITH
2850 N. Hardwood Street
Dallas, TX 75201
Tel: (469) 680-4213
E-mail: mpcooley@reedsmith.com
WMB HOLDINGS: Moody's Affirms B1 CFR & Alters Outlook to Positive
-----------------------------------------------------------------
Moody's Ratings affirmed the corporate family rating of B1 and
probability of default rating of B1-PD of WMB Holdings, Inc. (dba
"Corporation Services Company" or "CSC"). Moody's also affirmed the
B1 instrument ratings for the backed senior secured first lien bank
credit facilities issued by Corporation Service Company. The
outlook has been changed to positive from stable for both WMB
Holdings, Inc. and Corporation Service Company.
The ratings actions follow continued revenue growth and
deleveraging since the acquisition of Intertrust N.V. that CSC
completed in November 2022. The company has been able to maintain a
good margin profile and strong cash flow generation. The change in
the outlook to positive is based on Moody's expectations for
continued revenue growth, additional deleveraging with
discretionary debt paydowns and long-term financial policies, which
should lead to improved credit metrics. Governance is a
consideration in the change in outlook since the company is
expected to continue to manage leverage lower towards its (net)
leverage target of 2.0x-2.5x.
RATINGS RATIONALE
The B1 CFR reflects the company's established position as a leading
provider of global business administration and compliance
solutions, specialized administration services to alternative asset
managers across a range of fund strategies, transactions involving
capital markets participants in both public and private markets,
domain name system management and digital brand and fraud
protection, and corporate tax software solutions. The company
operates in the trust and corporate service ("T&CS") market. CSC
provides a wide range of services related to the business life
cycle, starting from business entity formation to transaction
execution to wind down of entities. CSC has a long history of
operating in the industry and has grown by acquisitions that added
capabilities to its suite of services. The services that it
provides are essential in nature for corporations to operate and as
such the company benefits from a very stable revenue base with a
high proportion of recurring revenue. Moody's expects that CSC will
be able to maintain its strong EBITDA margins in the 35%+ area and
drive leverage below 4.0x in the next 12-18 months. Free cash flow
to debt is expected to be in the high single digit range after
distributions to shareholders.
The ratings are constrained by the acquisitive nature of the
company. Acquisitions have been mostly funded with internal cash
flow for bolt on acquisitions although there have been a few
debt-financed acquisitions in the past. Further constraining the
ratings is the exposure to legal and compliance risk, which is a
feature of the T&CS sector, and some cyclicality as the volume of
business formation is partly dependent on M&A activity.
The positive outlook reflects Moody's expectations for organic
revenue growth in the low-single digit range over the next 12-18
months and stable EBITDA margins in the 35% - 38% range. Top line
growth, stable profitability and debt amortization are expected to
reduce leverage to below 4.0x over the next 12-18 months (Moody's
adjusted). Moody's expects the demand for trust and corporate
services and fund administration to remain stable given the
essential nature of the business. The outlook also incorporates the
assumption that the company will be able to maintain its market
share in the industry, and that the company's financial policies
will balance shareholder distributions with debt reduction, such
that long-term debt/EBITDA will be sustained below 4.0x.
Liquidity is very good, supported by cash and cash equivalents of
approximately $200 million as of December 31, 2024. In addition,
Moody's anticipates CSC will generate healthy free cash flow, with
FCF/debt of around 10% over the next 12-18 months. CSC's use of
cash includes annual stock buybacks and distributions to equity
holders. Moody's do not expect the company to change its stock
buyback and distribution policies from the existing policy. A $250
million mostly undrawn revolver due 2027 provides additional
liquidity.
The ratings for the first lien facilities incorporate CSC's overall
probability of default, reflected in the B1-PD, and the loss given
default assessments for the term loans. The first lien revolver,
term loan A and term loan B are rated B1, which is at the same
level as the B1 CFR. These ratings also reflect the one class
capital structure of the company. The facilities are secured by all
stock and assets (with a threshold for real estate) of material US
entities and 65% of stock on foreign subsidiaries. The facilities
are guaranteed by the parent and wholly owned restricted
subsidiaries in the US The guarantors account for approximately 62%
of combined company revenue. The term loan B is not subject to any
financial maintenance covenants. The revolver and term loan A are
subject to a maximum Net First Lien Leverage of 4.75x with
step-downs. Moody's believes that the company will be able to
comply with this covenant.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if: (i) the company increases its
operating scale and is able to maintain revenue growth, (ii)
Moody's expects debt to EBITDA leverage to be sustained below 4.0x
and FCF to debt approaches 10% (all metrics Moody's adjusted and
after expensing software development costs in EBITDA and free cash
flow is after distributions) and (iii) strong liquidity is
maintained.
Ratings could be downgraded if: (i) Moody's expects a sustained
decline in revenue that indicates erosion of demand for services or
loss of market share, (ii) debt to EBITDA will be sustained at or
above 5.5x and FCF to debt will be below 5% (all metrics Moody's
adjusted and after expensing software development costs in EBITDA
and free cash flow is after distributions), (iii) liquidity
deteriorates meaningfully, and (iv) financial policies become more
aggressive with higher tolerance for debt leverage.
Headquartered in Wilmington, Delaware CSC provides business, legal,
tax, and digital brand services to companies, law firms, and
financial institutions around the world. CSC's operating model is
designed to group complementary services into specialized business
units, each supported by dedicated shared services. CSC's four
business units include Corporate and Legal Solutions, Funds and
Capital Markets, Digital Brand Services, and Tax and Business
Solutions. CSC is privately owned by three families. Moody's
expects that CSC will generate approximately $2 billion in net
revenue in FY 2024.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
WYATT RESTAURANT: Unsecureds Owed $920K to Get 2% over 3 Years
--------------------------------------------------------------
Wyatt Restaurant Group, LLC, submitted a Second Amended Plan of
Reorganization for Small Business under Subchapter V dated February
28, 2025.
The Debtor's financial projections show that the Debtor will have
projected disposable income that is sufficient to pay creditors
holding allowed secured and priority unsecured claims while
maintaining a minimal and necessary level of liquidity and/or
working capital.
This Plan proposes to pay certain creditors of the Debtor, from
cash flow from future earnings. The Debtor intends to keep the
assets disclosed within its bankruptcy schedules, except for the
assets surrendered herein the Plan. The Debtor rejects the leases
at the facilities in Opp and Ozark, Alabama. The Debtor does not
intend to liquidate or dispose of any property; however, if
disposition or liquidation of property becomes necessary for a
successful reorganization, the Debtor will undertake such necessary
disposition or liquidation.
As set forth in this Plan and unless stated otherwise, a secured
creditor's claim will be treated as secured to the extent of the
value of the creditor's interest in the estate's interest in the
subject property and as unsecured to the extent that the value of
the creditor's interest is less than the amount of the allowed
claim.
A secured creditor will retain its lien on the collateral under
this Plan, to the extent of the secured value of the claim, unless
there is an express provision herein that states otherwise. A
secured creditor will receive payment on its secured claim, as set
forth in this Plan, out of the Debtor's future earnings on the
terms set forth herein this Plan. This Plan provides for payment to
creditors holding administrative and priority unsecured claims.
This Plan provides for a 2% distribution to creditors holding
allowed non-priority unsecured claims.
Class 3 consists of Non-Priority Unsecured Creditors. The allowed
unsecured claims total $919,613.45. Upon confirmation of this Plan,
the creditors holding the aforesaid allowed, nonpriority unsecured
claims will receive a total distribution of 2% of said claim
amount, with said distribution to be divided into three equal
payments, with a payment due on the first, second and third
anniversary dates of the Effective Date. Once these allowed non
priority unsecured claims are paid as provided in this Plan, the
Debtor shall be released from any and all further liability on
these claims.
The restructuring shall be effective as of the Effective Date, with
payments to be made as set forth herein above. The Debtor shall be
allowed a ten-day grace period within which to remit these
payments. The Debtor can satisfy these distributions at any time
without penalty or unaccrued interest. Upon payment and receipt of
the final distribution amount specified in this Plan, the unsecured
claims shall be deemed paid and satisfied in full.
The Debtor will retain its property (excepting the surrendered
collateral identified herein, if any), subject to the encumbrances
and liens thereon as provided herein, which will allow the Debtor
to operate its business, earn revenue pay its creditors holding
priority, secured and unsecured claims from future earnings derived
from such operations. As applicable and necessary, the Debtor
submits all or such required amount of its future earnings or other
future income as is necessary to effectuate the execution of this
Plan.
A full-text copy of the Second Amended Plan dated February 28, 2025
is available at https://urlcurt.com/u?l=QFFWIp from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Anthony B. Bush, Esq.
The Bush Law Firm, LLC
Parliament Place Professional Center
3198 Parliament Circle 302
Montgomery, AL 36116
Telephone: (334) 263-7733
Facsimile: (334) 832-4390
Email: anthonybbush@yahoo.com
About Wyatt Restaurant Group
Wyatt Restaurant Group is a privately held full-service restaurant
in Montgomery, Ala.
Wyatt Restaurant Group filed voluntary Chapter 11 petition (Bankr.
M.D. Ala. Case No. 24-31689) on July 31, 2024, listing $500,000 to
$1 million in assets and $1 million to $10 million in liabilities.
The petition was signed by Stephanie Leigh Wyatt as member.
Judge Bess M Parrish Creswell presides over the case.
Anthony Brian Bush, Esq., at The Bush Law Firm, LLC, is the
Debtor's counsel.
WYNN TEC: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Wynn Tec, Inc.
70 EJ Commerce Drive
Loganton, PA 17747
Chapter 11 Petition Date: March 21, 2025
Court: United States Bankruptcy Court
Middle District of Pennsylvania
Case No.: 25-00751
Judge: Hon. Mark J Conway
Debtor's Counsel: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY PC
2320 N. Second St.
Harrisburg, PA 17110
Tel: (717) 238-6570
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brian Wynn as president.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/UYJ25EI/Wynn_Tec_Inc__pambke-25-00751__0003.0.pdf?mcid=tGE4TAMA
A complete version of the petition can be accessed for free on
PacerMonitor at:
https://www.pacermonitor.com/view/UIZM4IQ/Wynn_Tec_Inc__pambke-25-00751__0001.0.pdf?mcid=tGE4TAMA
WYNN TEC: Seeks Chapter 11 Bankruptcy in Pennsylvania
-----------------------------------------------------
On March 21, 2025, Wynn Tec Inc. filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Middle District of Pennsylvania.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Wynn Tec Inc.
Wynn Tec Inc. is a small business corporation based in Loganton,
Pennsylvania.
Wynn Tec Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Pa. Case No. 25-00751) on March 21, 2025. In its
petition, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each .
Honorable Bankruptcy Judge Mark J. Conway handles the case.
The Debtor is represented by:
Robert E Chernicoff, Esq.
Cunningham and Chernicoff PC
2320 North Second Street
Harrisburg, PA 17110
Phone: 717-238-6570
Fax: 717-238-4809
XPLR INFRASTRUCTURE: S&P Rates Senior Unsecured Notes 'BB'
----------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating to XPLR
Infrastructure Operating Partner L.P.'s (XIFR Operating) proposed
$1.4 billion senior unsecured notes due 2031 and 2033, with a '4'
recovery rating (recovery estimate: 40%). While the financing is
not leverage neutral, it is factored in S&P's recent credit review
of parent XIFR Infrastructure L.P. (XIFR) and is consistent with
our expectations of XIFR's financial measures through 2026.
S&P said, "In our review, we factored up to $1.4 billion in debt
issuances at XIFR Operating throughout 2025. This issuance is
effectively for the refinancing of a $600 million 2025 maturity,
repowering capital expenditure, and general funds. Because the cash
is fungible, we expect this debt to pay down any interim revolver
draws.
"Under a hypothetical default analysis, our recovery estimate for
XIFR's unsecured debt is 40%-45%. Were this to decline below 30%,
we would rate the unsecured debt one notch below the corporate
credit rating. Effectively, this limits the ability of the company
to issue senior debt to the unsecured notes and could also include
project-level nonrecourse debt that has priority over some assets.
We note that we have already factored in the project-level
nonrecourse debt the company will issue for financing its
repowering projects in 2025 and 2026 to the current ratings."
The negative outlook reflects not only XIFR's higher leverage in
the near term but also execution risks of the successful settlement
of the 2019 KKR convertible equity portfolio financing (CEPF)with
ongoing cash flow and retained cash and the completion of the Meade
pipeline sale.
S&P expects the negative outlook will remain at least until 2026 as
XIFR executes on its strategic plans.
YOUNG MEN'S CHRISTIAN: Taps Brand Blackwell as Accountant
---------------------------------------------------------
The Young Men's Christian Association of Metropolitan Huntsville,
Alabama seeks approval from the U.S. Bankruptcy Court for the
Northern District of Alabama to hire Brand, Blackwell & Company,
P.C. as an accountant.
The accountant will be preparing the Debtor's audited Financial
Statement for 2023 in conformity with accounting principles
generally accepted in the United States.
The fees for these services are estimated to be approximately
$42,000, consisting of $32,000 for the financial statement audit
and $10,000 for performing a Single Audit required by Uniform
Guidance relating to the Debtor's expenditure of federal awards.
Blackwell & Company are "disinterested person" as defined in 11
U.S.C. 101(14), according to court filings.
The firm can be reached through:
Randy Blackwell, CPA
Brand, Blackwell & Company, P.C.
4930 Corporate Drive, Suite A
Huntsville, AL 35805
Telephone: (256) 536-3513
Facsimile: (256) 534-4771
About The Young Men's Christian Association
The Young Men's Christian Association of Metropolitan Huntsville,
Alabama is a non-profit organization that offers programs to
support the needs of a growing and diverse communities including
childcare, health & fitness, teen programs and community programs.
YMCA filed Chapter 11 petition (Bankr. N.D. Ala. Case No, 24-81638)
on August 23, 2024, with $10 million to $50 million in both assets
and liabilities. Jeff Collen, interim chief executive officer of
YMCA, signed the petition.
Judge Clifton R Jessup Jr. presides over the case.
Kevin D. Heard, Esq., at Heard, Ary & Dauro, LLC, is the Debtor's
legal counsel.
*********
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