/raid1/www/Hosts/bankrupt/TCR_Public/250326.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, March 26, 2025, Vol. 29, No. 84
Headlines
23ANDME HOLDING: Has $35-Mil. of DIP Financing From JMB Capital
23ANDME HOLDING: Settles Cyber Incident Suits for $37.5 Million
23ANDME HOLDING: Starts Bankruptcy Proceedings in Missouri
23ANDME HOLDINGS: Files for Chapter 11 to Pursue Sale
3265 E. VALLEY: Gets Court Approval to Use Cash Collateral
66FGP LLC: Seeks Chapter 11 Bankruptcy in New York
7Q59 AMHERST: Gets Court OK to Use Cash Collateral Until May 8
99 BOTTLES: To Sell Melbourne Properties to 712 E. & The Beef Boys
A.R.M. BAGELS: To Sell Bagel Business to RJD Bagels for $225,000
A/C DUCTOLOGIST: Seeks Chapter 11 Bankruptcy in Florida
ABERCROMBIE & FITCH: S&P Alters Outlook to Pos., Affirms 'BB' ICR
AL NGPL: S&P Affirms 'B+' ICR on Announced Acquisition
ALC ENGINEERED: Gets Interim OK to Use Cash Collateral
ALLECOM CORP: Case Summary & 19 Unsecured Creditors
ANTERO MIDSTREAM: S&P Affirms 'BB+' Long-Term ICR, Outlook Stable
ARENA GROUP: P. Edmondson Granted 400K Options to Buy Stocks
ASPIRA WOMEN'S: Jack Schuler and Trust Hold 14.7% Equity Stake
AVALON GLOBOCARE: Amends Bylaws to Reduce Quorum Requirement
AVALON GLOBOCARE: Eliminates Series A and B Pref Shares Designation
B. RILEY FINANCIAL: ReVal Sells Interests for $102-Mil.
BEACON ROOFING: S&P Places 'BB-' ICR on CreditWatch Developing
BEELINE HOLDING: Receives Nasdaq Approval for New Listing
BLOOMIN' BRANDS: S&P Alters Outlook to Negative, Affirms 'BB-' ICR
BURGESS BIOPOWER: Seeks to Extend Plan Exclusivity to June 9
CATHOLIC FAITH: Case Summary & 15 Unsecured Creditors
CEDERMERE LLC: Sec. 341(a) Meeting of Creditors on April 17
CINEMARK HOLDINGS: Board OKs $200MM Share Repurchase Program
CITIUS PHARMACEUTICALS: Three Proposals Approved at Annual Meeting
CLYDESDALE ACQUISITION: Fitch Assigns 'BB' First-Time LongTerm IDR
COGENT COMMUNICATIONS: S&P Affirms 'B+' Issuer Credit Rating
COLIANT SOLUTIONS: Gets Final OK to Use Cash Collateral
CONCORDE METRO: Case Summary & 14 Unsecured Creditors
CONN'S INC: Plan Exclusivity Period Extended to May 4
COWAN FITNESS: Case Summary & Five Unsecured Creditors
DANIMER SCIENTIFIC: Gets Interim Court Okay for $1MM Ch.11 Loan
DIGITAL ALLY: Securities Delisted from Nasdaq
DILLONS POWER: Gets Interim OK to Use Cash Collateral
DURHAM HOMES: $91K Unsecured Claims to Recover 100% in Plan
EAGLE ADVANTAGE: S&P Lowers ICR to 'BB' on Falling Enrollment
EASTSIDE DISTILLING: Amends ELOC Agreement
EASTSIDE DISTILLING: Nicholas Liuzza Jr. Appointed as New CEO
EASTSIDE DISTILLING: Raises $230K From Series G Pref Share Offering
EASTSIDE DISTILLING: Shareholders OK Name Change, 3 Other Proposals
ELECTRONICS FOR IMAGING: S&P Affirms 'CCC+' ICR, Outlook Negative
ELEGANT TENTS: Gets Interim OK to Use Cash Collateral
ENERGYSOLUTIONS LLC: Moody's Alters Outlook on 'B2' CFR to Stable
ENGLOBAL CORP: Gets Court Okay for Ch. 11 Asset Auction in April
ENVISION CIVIL: Case Summary & 20 Largest Unsecured Creditors
EZCORP INC: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable
FORTREA HOLDINGS: Fitch Lowers LongTerm IDR to 'B', Outlook Neg.
FRANCHISE GROUP: Lender Dispute Triggers New Bankruptcy Lawsuit
GLOBAL MEDICAL: Moody's Raises CFR to B2 & Alters Outlook to Stable
HEALTH DRIP: Case Summary & Three Unsecured Creditors
HERITAGE GROCERS: Moody's Cuts CFR to B3 & Alters Outlook to Stable
HERTZ GLOBAL: In Agreement w/ CK Amarillo to Restrict Voting Power
HTX WELLNESS: Amends Paragon Bank & AILCO Equipment Secured Claims
IDEANOMICS INC: SSG Served as Investment Banker in Asset Sale
IMERYS TALC: Insurers Want Italian Subsidiary's Chapter 11 Tossed
INTERSTATE WASTE: S&P Affirms 'B' ICR on Fungible Term Loan Add-On
INVATECH PHARMA: Gets Extension to Access Cash Collateral
JAC RENTALS: Case Summary & Seven Unsecured Creditors
JOONKO DIVERSITY: Seeks to Extend Plan Exclusivity to June 8
KLX ENERGY: Inks $125MM ABL Facility with Eclipse Business
KLX ENERGY: Inks $232MM Securites Purchase Agreement
LANDMARK HOLDINGS: Gets OK to Use Cash Collateral Until April 11
LEVEL 3 FINANCING: Moody's Rates New Sec. Term Loan Due 2032 'B1'
LIBERATED BRANDS: Gets Final $45MM DIP Approval in Chapter 11
LODGING ENTERPRISES: Seeks to Extend Plan Exclusivity to June 23
LSR TANGLEWOOD: Rocky Reagan's Contribution to Fund Plan Payments
MADISON IAQ: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable
MARINUS PHARMACEUTICALS: Morgan Stanley Disposes of Equity Stake
MARKOV CORPORATION: Gets Extension to Access Cash Collateral
MAWSON INFRASTRUCTURE: Board OKs Increase of CEO's Base Salary
MAXEON SOLAR: Zhonghuan Singapore Holds 59.2% Equity Stake
MERIDIANLLINK INC: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
MINI MANIA: Amends Plan to Include Pay Pal Secured Claims
MISS BRENDA: Seeks Chapter 11 Bankruptcy in Alaska
MOSAIC SWNG: Gets Extension to Access Cash Collateral
NAOTA HASHIMOTO: Seeks Chapter 11 Bankruptcy in Nevada
NITRO FLUIDS: Plan Exclusivity Period Extended to June 9
ON SEMICONDUCTOR: S&P Alters Outlook to Stable, Affirms 'BB+' ICR
PHCV4 HOMES: Gets OK to Use Cash Collateral
PILGRIM'S PRIDE: Moody's Affirms 'Ba2' CFR, Outlook Stable
PLANO SMILE: Gets Interim OK to Use Cash Collateral
PLENTY UNLIMITED: Files for Chapter 11 to Restructure Debt
PLENTY UNLIMITED: Seeks Chapter 11 Bankruptcy in Texas
PREPAID WIRELESS: Seeks Continued Cash Collateral Access
PREST PROPERTIES: Case Summary & Four Unsecured Creditors
PROSPECT MEDICAL: Secures $13MM Funding Increase During Sale Talks
PURE AVIATION: Case Summary & Two Unsecured Creditors
QVC GROUP: Overhauls Management Team as Part of Expansion Strategy
RADIX HAWK: Case Summary & Seven Unsecured Creditors
RED OAK: Moody's Rates New $334MM Credit Facilities 'Ba3'
RKSR INVESTMENTS: Claims to be Paid From Property Sale Proceeds
RUNNER BUYER: Moody's Cuts CFR to 'Ca', Outlook Stable
SCANROCK OIL & GAS: Royalty Holders Postpone Ch. 11 Committee Bid
SCIENTIFIC GAMES: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
SEANERGY MARITIME: Reports Record Full Year Profitability for 2024
SEAQUEST HOLDINGS: To Sell Interactive Mammal Business to Resolve
SEARS HOMETOWN: Chancery Rejects Mid-Case Appraisal Dispute Appeal
SHINE SOLAR: Seeks Cash Collateral Access
SIGYN THERAPEUTICS: G. DeCiccio Retires as CFO
SLATER PARK: Gets Final OK to Use Cash Collateral
SOLID BIOSCIENCES: Files S-3 Statement for Resale of 975K Shares
SOLID BIOSCIENCES: Registers Additional Securities For 2020 Plan
SOUTHERN CUTTERS: Gets Interim OK to Use Cash Collateral
SPHERE 3D: Receives Notice of Delisting from Nasdaq
STITCH ACQUISITION: S&P Discontinues 'SD' Issuer Credit Rating
SUNATION ENERGY: J. Brennan Replaces A. Childs as CFO
SUNATION ENERGY: L1 Capital Holds 9.99% Equity Stake
SUNNOVA ENERGY: Moody's Lowers CFR to 'Ca', Outlook Stable
TARGET HOSPITALITY: Moody's Withdraws 'B1' CFR on Debt Repayment
TARO INVESTMENT: Unsecureds to Get 100 Cents on Dollar in Plan
TEXACO INC: Challenges Ch. 11 Ruling to Keep La. Litigation Alive
TITANIUM HOLDINGS: Seeks Chapter 11 Bankruptcy in Nevada
UNLOCKD MEDIA: Plans to Appeal Google Antitrust Case to 9th Circ.
US 24 TRUCK: Gets Interim OK to Use Cash Collateral Until April 5
VILLAGE ROADSHOW: Gets Preliminary Chapter 11 Loans Approval
WA3 PROPERTIES RENTON: Case Summary & Seven Unsecured Creditors
WELLPATH HOLDINGS: Seeks to Extend Plan Exclusivity to May 12
WERNER FINCO: S&P Alters Outlook to Stable, Affirms 'B-' ICR
WHIDBEY ISLAND PHD: Moody's Confirms B1 Rating on 2013 GOULT Bonds
WHOLESALE CAR: Gets Final OK to Use Cash Collateral
WILLIAM LAY: Gets Final OK to Use Cash Collateral
WILLOUGHBY EQUITIES: Creditor Twist Realty Files Liquidating Plan
WOLVERINE WORLD: S&P Alters Outlook to Stable, Affirms 'B' ICR
XTI AEROSPACE: Issues 180K Shares of Stock to Streeterville Capital
[] AlixPartners Names Koza Co-Leader of Restructuring Practice
*********
23ANDME HOLDING: Has $35-Mil. of DIP Financing From JMB Capital
---------------------------------------------------------------
23andMe Holding Co. (Nasdaq: ME) and 11 affiliated debtors each
filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code in the United States Bankruptcy Court
for the Eastern District of Missouri, Eastern Division.
23andMe is using the Chapter 11 proceedings to facilitate a sale
process to maximize the value of its business. 23andMe intends to
continue operating its business in the ordinary course throughout
the sale process.
Any buyer will be required to comply with applicable law with
respect to the treatment of customer data and any transaction will
be subject to customary regulatory approvals, including, as
applicable, the Hart-Scott-Rodino Act and the Committee on Foreign
Investment in the United States.
JMB DIP Financing
On March 23, 2025, 23andMe Holding entered into a binding term
sheet with JMB Capital Partners Lending, LLC, pursuant to which,
and subject to the satisfaction of certain conditions, including
the approval of the United States Bankruptcy Court for the Eastern
District of Missouri, JMB agreed to provide loans under a
non-amortizing priming superpriority senior secured term loan
credit facility in an aggregate principal amount up to $35 million.
The terms and conditions of the proposed DIP Facility are set
forth in the DIP Term Sheet. The Company expects to enter into a
credit agreement governing the DIP Facility with JMB and its
subsidiaries.
The DIP Facility will include conditions precedent, representations
and warranties, affirmative and negative covenants, and levels of
default customary of financings of this type and size. The
proceeds of all or a portion of the proposed DIP Facility may be
used by the Debtors in accordance with the terms of the DIP Term
Sheet, including without limitation, (i) to pay the administrative
costs of the Chapter 11 cases and (ii) for working capital and
other general corporate purposes, in all cases on the terms, and
subject to the conditions, set forth in the DIP Credit Agreement
and the applicable orders of the Court.
First Day Motions
To ensure their ability to continue operating in the ordinary
course of business, the Debtors have filed with the Court motions
seeking a variety of "first-day" relief, including the authority to
pay employee wages and benefits and compensate certain vendors and
suppliers on a go-forward basis. The Debtors have also filed a
motion seeking approval to reject numerous contracts, including the
real estate leases in Sunnyvale and South San Francisco, to reduce
the Company's ongoing operating expenses.
The Debtors have also filed a motion seeking authorization to
pursue a structured sale of their assets pursuant to a competitive
auction and sale process under Section 363 of the Bankruptcy Code.
The Special Committee of the Board of Directors of the Company has
engaged Moelis & Company LLC to advise on the Company's strategic
options, including a potential sale of all, substantially all, or a
portion of the Debtors' assets in connection with the Bankruptcy
Petitions. Any of those sales would be subject to review and
approval by the Court and compliance with court-approved bidding
procedures. The Company cannot be certain that the Company's
securityholders will receive any payment or other distribution on
account of their shares following such sales.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology
company empowering a healthier future. Through its
direct-to-consumer genetic testing, 23andMe offers personalized
insights into ancestry, genetic traits, and health risks. The
Company has developed a large database of genetic information from
over 15 million customers, enabling it to provide health and
carrier status reports and collaborate on genetic research for drug
development. On the Web: http://www.23andme.com/
On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No.
25-40976).
The Company disclosed $277,422,000 in total assets against
$214,702,000 in total liabilities as of Dec. 31, 2024.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis &
Bockius LLP are serving as legal counsel to 23andMe and Alvarez &
Marsal North America, LLC as restructuring advisor. Moelis &
Company LLC is serving as investment banker and Goodwin Procter LLP
is serving as legal advisor to the Special Committee of 23andMe's
Board of Directors. Reevemark and Scale are serving as
communications advisors to the Company. Kroll is the claims agent.
23ANDME HOLDING: Settles Cyber Incident Suits for $37.5 Million
---------------------------------------------------------------
23andMe Holding Co. (Nasdaq: ME) said in a filing with the
Securities and Exchange Commission that on March 21, 2025, the
Company entered into settlements with plaintiffs represented by
Potter Handy, LLP in actions filed in the Superior Court of the
State of California and arbitration claimants represented by
Labaton Keller Sucharow LLP, Levi & Korsinsky LLP, and Milberg
Coleman Bryson Phillips Grossman PLLC, relating to the previously
disclosed cyber incident reported by the Company on Oct. 10, 2023.
The Company has agreed to pay, subject to the satisfaction of
certain conditions, an aggregate of $37.5 million to settle claims
relating to the Incident brought on behalf of U.S. customers,
including those who choose to exercise arbitration rights. The
Settlements represent compromise settlements and shall not be
construed as an admission of any liability or obligation whatsoever
by any party to any other party or any other person or entity.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology
company empowering a healthier future. Through its
direct-to-consumer genetic testing, 23andMe offers personalized
insights into ancestry, genetic traits, and health risks. The
Company has developed a large database of genetic information from
over 15 million customers, enabling it to provide health and
carrier status reports and collaborate on genetic research for drug
development. On the Web: http://www.23andme.com/
On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No.
25-40976).
The Company disclosed $277,422,000 in total assets against
$214,702,000 in total liabilities as of Dec. 31, 2024.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis &
Bockius LLP are serving as legal counsel to 23andMe and Alvarez &
Marsal North America, LLC as restructuring advisor. Moelis &
Company LLC is serving as investment banker and Goodwin Procter LLP
is serving as legal advisor to the Special Committee of 23andMe's
Board of Directors. Reevemark and Scale are serving as
communications advisors to the Company. Kroll is the claims agent.
23ANDME HOLDING: Starts Bankruptcy Proceedings in Missouri
----------------------------------------------------------
James Crombie of Bloomberg News reports that 23andMe Holding Co., a
consumer genetic testing company, has filed for bankruptcy in the
U.S. to support a potential sale.
The Silicon Valley-based firm commenced Chapter 11 proceedings in
the U.S. Bankruptcy Court for the Eastern District of Missouri,
aiming to "maximize the value of its business," according to a
statement. The company will continue operations throughout the
sales process, according to Bloomberg Law.
23andMe lists $277.4 million in assets and $214.7 million in
liabilities and has secured up to $35 million in
debtor-in-possession financing from JMB Capital Partners, the
report states.
About 23andMe Holding Co.
23andMe Holding Co. is a leading genetics and telehealth company
focused on helping individuals access and understand their genetic
information. Through its direct-to-consumer genetic testing,
23andMe offers personalized insights into ancestry, genetic traits,
and health risks. The Company has developed a large database of
genetic information from over 15 million customers, enabling it to
provide health and carrier status reports and collaborate on
genetic research for drug development. Additionally, 23andMe holds
FDA authorization for its genetic health risk, carrier status,
cancer predisposition, and pharmacogenetics reports. The Company
also operates Lemonaid Health, a telehealth platform that provides
medical care, pharmacy fulfillment, and laboratory testing
services.
23andMe Holding Co. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Miss. Case No. 25-40976) on March 23,
2025. In its petition, the Debtor reports $277.4 million in assets
and $214.7 million in liabilities.
The Debtor is represented by Thomas H. Riske, Esq., Nathan R.
Wallace, Esq., and Jackson J. Gilkey, Esq., at CARMODY MACDONALD
P.C., in St. Louis, Missouri; and Paul M. Basta, Esq., Christopher
Hopkins, Esq., Jessica I. Choi, Esq., and Grace C. Hotz, Esq., at
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP, in New York.
Special Counsel to Special Committee is GOODWIN PROCTER LLP and
LEWIS RICE LLC.
Financial Advisor, Capital Markets Advisor & Investment Banker for
Special Committee is MOELIS & COMPANY LLC.
Debtors' Notice & Claims Agent is KROLL RESTRUCTURING
ADMINISTRATION SERVICES LLC.
23ANDME HOLDINGS: Files for Chapter 11 to Pursue Sale
-----------------------------------------------------
23andMe Holding Co. (Nasdaq: ME), a human genetics and
biotechnology company, announced that it has initiated voluntary
Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern
District of Missouri to facilitate a sale process to maximize the
value of its business.
The Company intends to continue operating its business in the
ordinary course throughout the sale process. There are no changes
to the way the Company stores, manages, or protects customer data.
"After a thorough evaluation of strategic alternatives, we have
determined that a court-supervised sale process is the best path
forward to maximize the value of the business," said Mark Jensen,
Chair and member of the Special Committee of the Board of
Directors. "We expect the court-supervised process will advance
our efforts to address the operational and financial challenges we
face, including further cost reductions and the resolution of legal
and leasehold liabilities. We believe in the value of our people
and our assets and hope that this process allows our mission of
helping people access, understand and benefit from the human genome
to live on for the benefit of customers and patients."
Jensen continued, "We want to thank our employees for their
dedication to 23andMe's mission. We are committed to supporting
them as we move through the process. In addition, we are committed
to continuing to safeguard customer data and being transparent
about the management of user data going forward, and data privacy
will be an important consideration in any potential transaction."
23andMe is seeking authorization from the Court to commence a
process to sell substantially all of its assets through a chapter
11 plan or pursuant to Section 363 of the U.S. Bankruptcy Code. If
approved by the Court, the Company, with the assistance of an
independent investment banker, would actively solicit qualified
bids over a 45-day process. If multiple qualified bids are
submitted during the Court-supervised sale process, the Company
plans to conduct an auction to maximize the value of its assets.
Any buyer will be required to comply with applicable law with
respect to the treatment of customer data and any transaction will
be subject to customary regulatory approvals, including, as
applicable, approvals under the Hart-Scott-Rodino Act and the
Committee on Foreign Investment in the United States.
The Company has led customary motions with the Court seeking a
variety of "first-day" relief, including the authority to pay
employee wages and benefits and compensate certain vendors and
suppliers on a go-forward basis. 23andMe has also led a motion
with the Court seeking approval to reject numerous contracts,
including the real estate leases in Sunnyvale and San Francisco, to
reduce 23andMe's ongoing operating expenses. The Company expects to
receive Court approval for these requests.
In addition, 23andMe intends to use the proceedings to resolve all
outstanding legal liabilities stemming from the previously
disclosed October 2023 cyber incident.
23andMe has received a commitment for debtor-in-possession ("DIP")
financing of up to $35 million from JMB Capital Partners. Upon
Court approval, the additional liquidity from the DIP financing,
combined with cash generated from the Company's ongoing operations,
is expected to support the business during these proceedings.
The commencement of the proceedings follows the rejection by the
Special Committee of the final non-binding acquisition proposal
made by Anne Wojcicki and certain of her affiliates on March 10,
2025. Ms. Wojcicki's proposal was included in an amended Schedule
13D filing made by Ms. Wojcicki and such affiliates with the
Securities and Exchange Commission on March 11, 2025.
Additional information regarding 23andMe's Chapter 11 ling,
proceedings and claims process will be available at
https://restructuring.ra.kroll.com/23andMe. Questions about the
claims process should be directed to the Company's claims agent,
Kroll, at 23andMeInfo@ra.kroll.com or by calling (888) 367-7556.
Board and Leadership Changes
23andMe also announced that Anne Wojcicki is resigning from her
role as Chief Executive Officer, effective immediately, by mutual
agreement between Ms. Wojcicki and the Special Committee. Ms.
Wojcicki will continue to serve as a member of 23andMe's Board.
The Board has appointed Joe Selsavage, Chief Financial and
Accounting Officer, to the additional role of Interim Chief
Executive Officer, and Matt Kvarda, a Managing Director at Alvarez
& Marsal, as Chief Restructuring Officer.
In addition, Thomas Walper, a former Partner in the Financial
Restructuring Practice at Munger, Tolles & Olson LLP, was appointed
to 23andMe's Board and the Special Committee as an independent
director. Mr. Jensen has been appointed Chair of the Board.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology
company empowering a healthier future. Through its
direct-to-consumer genetic testing, 23andMe offers personalized
insights into ancestry, genetic traits, and health risks. The
Company has developed a large database of genetic information from
over 15 million customers, enabling it to provide health and
carrier status reports and collaborate on genetic research for drug
development. On the Web: http://www.23andme.com/
On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No.
25-40976).
The Company disclosed $277,422,000 in total assets against
$214,702,000 in total liabilities as of Dec. 31, 2024.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis &
Bockius LLP are serving as legal counsel to 23andMe and Alvarez &
Marsal North America, LLC as restructuring advisor. Moelis &
Company LLC is serving as investment banker and Goodwin Procter LLP
is serving as legal advisor to the Special Committee of 23andMe's
Board of Directors. Reevemark and Scale are serving as
communications advisors to the Company. Kroll is the claims agent.
3265 E. VALLEY: Gets Court Approval to Use Cash Collateral
----------------------------------------------------------
3265 E. Valley Vista, LLC and its affiliates got the green light
from the U.S. Bankruptcy Court for the District of Arizona to use
cash collateral.
At the hearing held on March 18, the court granted the Debtors'
motion to use cash collateral until July 16.
The Debtors need to use cash collateral to cover operating expenses
and to retain a property manager for its property at 6740 E. Desert
Cove, Scottsdale, Ariz.
The Desert Cove property was reassigned to Wilmington Savings Fund
Society on January 1, 2025, and Capital Fund no longer manages it.
Despite this, Wilmington Savings Fund Society has not objected to
the use of cash collateral or the retention of a property manager
for the Desert Cove property.
The Debtors have requested to retain PV Homes & Villas LLC as the
property manager for the Desert Cove property, as it is currently
managing other properties for the Debtors. The retention of this
company is considered beneficial for the ongoing management of the
properties and for the overall reorganization process.
About 3265 E. Valley Vista
3265 E. Vallley Vista, LLC is engaged in the vacation rental
market.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 2:24-bk-10529) on
December 9, 2024. In the petition signed by Sean Parsons, member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Brenda K. Martin oversees the case.
Randy Nussbaum, Esq., at Sacks Tierney P.A., represents the Debtor
as legal counsel.
66FGP LLC: Seeks Chapter 11 Bankruptcy in New York
--------------------------------------------------
On March 18, 2025, 66FGP 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 $1,757,130 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About 66FGP LLC
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.
66FGP LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 25-41257) on March 18, 2025. In its
petition, the Debtor reports total assets of $1,800,600 and total
liabilities of $1,757,130.
Honorable Bankruptcy Judge Jil Mazer-Marino handles the case.
The Debtor is represented by:
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
7Q59 AMHERST: Gets Court OK to Use Cash Collateral Until May 8
--------------------------------------------------------------
7Q59 Amherst, LLC got the green light from the U.S. Bankruptcy
Court for the District of Massachusetts, Western Division, to use
cash collateral until May 8.
The Debtor's cash collateral consists of rentals from its two
properties: a 12-unit apartment complex at 1-23 Eastern Avenue,
Northampton, Mass., and a single-family rental at 11 South Whitney
Street, Amherst, Mass.
The 1-23 Eastern Avenue property is valued at $2.1 million while
the 11 South Whitney Street property is valued at $430,000.
Greenfield Cooperative Bank holds a first mortgage on both
properties, totaling an estimated $1.6 million.
The Debtor has provided a detailed budget for upcoming expenses,
including real estate taxes, insurance, maintenance, and
renovations. It plans to pay the mortgage holder monthly, with a
proposed payment of $8,762 for the first mortgage and $1,000 for
the second mortgage.
A further hearing is scheduled for May 8.
About 7Q59 Amherst LLC
7Q59 Amherst, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 25-30150) on March 17,
2025, listing up to $10 million in both assets and liabilities.
Xian Dole, manager of 7Q59 Amherst, signed the petition.
Judge Elizabeth D. Katz oversees the case.
Louis S. Robin, Esq., at Law Offices of Louis S. Robin, represents
the Debtor as bankruptcy counsel.
99 BOTTLES: To Sell Melbourne Properties to 712 E. & The Beef Boys
------------------------------------------------------------------
99 Bottles Hospitality, LLC, seeks permission from the U.S.
Bankruptcy Court for the Middle District of Florida, Orlando
Division, to sell personal property, free and clear of liens,
claims, encumbrances.
The Debtor owns both commercial and personal real property located
at 712 E. New Haven Ave., Melbourne, FL 32901.
The Debtor wants to sell the commercial property to 712 E. New
Haven, LLC, a Florida limited Liability Company and the personal
property to The Beef Boys LLC, a Florida limited liability company,
for approximately y $2,122,000.00, broken down as follows:
a. Real Property: $1,200,000.00
b. Personal Property: $800,000.00
c. Additional Consideration: Satisfaction of Allowed
Administrative Expenses, priority and senior secured claims up to
the sum of $122,00.00.
The purchase price will be paid through a combination of credit-bid
by Donald Carroll, who agrees to hold a $2,000,000.00 promissory
note from Buyers secured by the Commercial and Personal Property,
and cash at closing of up to $122,000.00 from Buyers, in order to
release all allowed secured claims senior to that of Mr. Carroll
and satisfy the Debtor's obligation to pay allowed administrative
expenses and priority claims.
The proposed deadline for closing is on or before April 16, 2025.
All fees, closing costs, settlement costs, and taxes including
county taxes, recording, transfer, and tax stamps will be paid at
closing or as otherwise set forth in the Contract.
The Debtor suggests that the sale process that, in the event this
Motion is granted, bidding be open for a period of one week from
the entry of the order granting the Motion. Anyone interested in
bidding more than the amount set forth may do so by submitting a
signed offer exceeding the amount set forth.
The Debtor seeks authority to sell the Commercial and Personal
Property free and clear of all liens,
claims, encumbrances, and interests.
About 99 Bottles Hospitality LLC
99 Bottles Hospitality LLC owns and operates a full-service
restaurant business in Melbourne, Fla.
99 Bottles Hospitality sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03666)
on July 17, 2024, with up to $50,000 in assets and up to $10
million in liabilities. Kevin O. Andersen, manager, signed the
petition.
Judge Tiffany P. Geyer oversees the case.
The Debtor is represented by Michael Faro, Esq., at Faro & Crowder.
A.R.M. BAGELS: To Sell Bagel Business to RJD Bagels for $225,000
----------------------------------------------------------------
A.R.M. Bagels Inc., d/b/a Highridge 2 Bagels, seeks permission from
the U.S. Bankruptcy Court for the Southern District of New York, to
sell real property located at 415 North Central Avenue, Hartsdale,
NY 10530, free and clear of liens, interests, and encumbrances.
The Debtor wants to sell the Property to RJD Bagels Inc. for the
purchase price of $225,000.00 in cash payable at the Closing.
The Debtor owns a small bagel shop which operates from the premises
at 415 North Central Park Avenue, Hartsdale, NY 10530. Its
principal is Anthony Iaccarino.
The Debtor has operated successfully for more than 16 years. The
Debtor's current financial predicament is the result of COVID-19
lockdowns, debt, increased prices and decrease in revenue.
The Debtor occupies the Premises pursuant to a written lease and
there are approximately 9 years remaining on the term.
The Debtor is substantially in arrears with a total approximately
$165,000.
The principal of the Buyer is related by marriage to Mr. Iaccarino
although, upon information and belief, they are not close. In fact,
they are competitors in the bagel business.
Mr. Iaccarino guarantied many of the Debtor's liabilities including
the Lease obligations and will likely file for personal Bankruptcy
relief. Mr. Iaccarino's elderly mother also guarantied the Lease
obligation.
The assets purchased include furniture, fixtures, equipment and
supplies, Goodwill, and inventory.
The Buyer will need to remit amounts necessary to cure the amounts
due under the Lease directly to the Landlord, which will be
approximately $165,000.00.
The balance will be paid first to NY State in satisfaction of sales
tax (approximately $40,000.00) and thereafter, to the secured
creditor with priority or to a Chapter 7 trustee who will
distribute it.
About A.R.M. Bagels Inc.
A.R.M. Bagels owns and operates bagel shop from 415 North Central
Park Avenue, Hartsdale, NY.
The Debtor sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr.S.D. N.Y. CASE NO.: 25-22194-kyp) on March 7, 2025.
A/C DUCTOLOGIST: Seeks Chapter 11 Bankruptcy in Florida
-------------------------------------------------------
On March 19, 2025, The A/C Ductologist LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Southern District
of Florida. According to court filing, the
Debtor reports $1,891,442 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About The A/C Ductologist LLC
The A/C Ductologist LLC 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.
The A/C Ductologist LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12944) on March 19,
2025. In its petition, the Debtor reports total assets of $433,330
and total liabilities of $1,891,442.
Honorable Bankruptcy Judge Peter D. Russin handles the case.
The Debtor is represented by:
Zach B. Shelomith, Esq.
LSS LAW
2699 Stirling Rd # C401
Fort Lauderdale, FL 33312
Tel: (954) 920-5355
E-mail: zbs@lss.law
ABERCROMBIE & FITCH: S&P Alters Outlook to Pos., Affirms 'BB' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook to positive from stable and
affirmed its 'BB' issuer-credit rating on Abercrombie & Fitch Co.
(ANF).
The positive outlook reflects the potential for a higher rating
over the next 12 months if the company demonstrates consistent
operating performance despite weakening consumer confidence and
spending on discretionary items.
The outlook revision reflects the company's good operating
performance. In fiscal 2024, the company's overall revenue expanded
15.6%, following a 15.8% increase in the prior year, largely due to
average unit retail (AUR) expansion and higher consumer traffic,
partially offset by the 53rd reporting period in 2023.
S&P said, "We attribute the growth momentum to the repositioning of
the company's two main brands and its ability to successfully
improve value perception for its products and offer new and
relevant assortments. The individual brands' performances were
strong. Abercrombie's comparable sales increased 15% from the prior
year and Hollister's increased 19% due to the roll out of the
company's transformation initiatives. This momentum, together with
optimized inventory management, led to reduced promotions and
better operating margins in the last two years. We believe recent
tariff increases will have limited impact on the company's cost
structure, but they could weaken overall consumer confidence and
spending on discretionary categories. We forecast revenue will grow
about 5% in 2025, supported by continued strengthening brand
positioning. We expect revenue will increase further by 3.8% in
2026 as growth trends continue to normalize.
"The ability to continue expanding profitability metrics while
maintaining operating performance is key to support our view of
improved competitive position. ANF's S&P Global Ratings- adjusted
EBITDA expanded more than 30% to about $1.2 billion fiscal 2024 led
by improved profitability and revenue growth. S&P Global
Ratings-adjusted EBITDA margin approached 25% in 2024 compared with
21.5% in 2023 and 14% in 2022 due to reduced promotions and cost
leveraging. In addition, the company's digital channels increased
to almost 50% of sales, which we believe enabled it to optimize its
store fleet, increase its productivity, and improve the company's
margin profile by reducing fixed costs as a percentage of total
costs. While we forecast a modest decline in margins in 2025 due to
higher freight costs and carryover inventory, we expect the company
will sustain adjusted EBITDA margin in the 24% area over the next
two years.
"In our view, optimized inventory management has been a key
component underpinning the company's improved operating
performance. The ability to read and react has allowed the company
to reduce promotions by testing its products and adapting inventory
to reflect changes in consumer behavior on an evolving
macroeconomic environment. In addition, the company has improved
operating margins by chasing inventory while moving away from its
previous approach, largely focused on cost leadership that used to
result in excess inventory and frequent clearance activities.
Inventory levels increased 22% in 2024 due to unit growth, freight
costs, inventory carryover and merchandise mix. While we expect
margin impact in 2025 will be limited, we will monitor the
company's ability to sustain consistent operating performance.
"ANF's conservative financial policy and sizeable cash balance
provide cushion to our credit metrics. ANF's S&P Global
Ratings-adjusted leverage, which consists of only lease
liabilities, approached 0x in fiscal 2024 as we now net cash
reflecting our improved view of the company's business. We forecast
adjusted leverage will remain at similar levels over the next two
years due to continued low levels of adjusted debt and improved
profitability. The company had a cash position of $889 million as
of Feb. 1, 2025, and no funded debt following its senior secured
notes redemption in fiscal 2024. While we do not expect the company
will increase leverage in the short-term, we believe the current
capital structure is not representative of a longer-term capital
structure. Furthermore, the company does not have a publicly stated
leverage target. Accordingly, we apply our negative financial
policy modifier to capture the risk of a leveraging event beyond
what we currently include in our forecasts."
Reported free operating cash flow (FOCF) improved to $527 million
in fiscal 2024 from $496 million in the prior year driven by
increased profitability. While the company plans to invest in 100
stores, which include new stores and refreshes, it will also expand
its operations through franchise, wholesale, and licensing
partnerships focusing on an asset-light growth model. This will
contribute to better FOCF generation over time. S&P expects FOCF of
about $540 million this year, increasing to $603 million in 2026.
S&P forecasts share repurchase of about $400 million in 2025, which
is in-line with its guidance, and an increase from the $230 million
in the prior year. Our forecast assumes the company will continue
using excess cash for shareholder returns going forward.
The positive outlook reflects the potential for higher rating if
ANF maintains a consistent operating performance as it continues to
strengthen its brands and expand its business operations despite
weakening consumer confidence and macroeconomic uncertainties.
S&P could revise its outlook to stable if S&P Global
Ratings-adjusted leverage is above 2x. This could occur if:
-- The company is unable to sustain the operating performances of
its two main brands such that its revenue and profitability
contract below our forecast levels. This could occur if there's
inventory missteps; or
-- Operating performance deteriorates or the company shifts to a
less-conservative financial policy that entails large share
repurchases, dividend payments, or debt-funded acquisitions.
S&P could raise its ratings on ANF if:
-- The company continues to strengthen and expand the overall
reach of its brands even in unfavorable market conditions;
-- The company demonstrates consistent operating performance by
expanding its operations while maintaining profitability supported
by healthy inventory; and
-- It maintains its conservative financial policy, which will
support S&P Global Ratings-adjusted leverage below 2x on a
sustained basis.
AL NGPL: S&P Affirms 'B+' ICR on Announced Acquisition
------------------------------------------------------
S&P Global Ratings affirmed our 'B+' issuer credit rating on AL
NGPL Holdings LLC ("AL NGPL"). At the same time, S&P affirmed its
'B+' issue-level rating on AL NGPL's term loan B. S&P's recovery
rating is unchanged at '3', indicating expectations for meaningful
recovery (50%-70%; rounded estimate: 55%) in the event of a
default.
The stable outlook reflects S&P's expectation that AL NGPL will
generate debt to EBITDA of between 6.5x–7.0x through 2026.
ArcLight Capital Partners, LLC ("ArcLight") manager of the ultimate
parent company of AL NGPL Holdings LLC ("AL NGPL"), announced the
signing of an agreement for the acquisition, by an affiliate, of a
25% ownership interest in NGPL Holdings LLC from Brookfield
Infrastructure Partners in an all-equity transaction.
The acquisition is positive for governance and financial policy at
AL NGPL. S&P affirmed the 'B+' issuer credit rating on AL NGPL
following ArcLight Capital Partners' announcement that its
affiliate has signed an agreement to acquire an additional interest
in NGPL
Specifically, a subsidiary of ArcLight Infrastructure Partners Fund
VIII – A, L.P. and its parallel funds ("ArcLight Fund VIII"), is
acquiring BIP PipeCo's 25% ownership stake in NGPL HoldCo through
an equity-financed transaction. Following the acquisition, AL NGPL
and ArcLight Fund VIII will collectively own 62.5% of NGPL, while
Kinder Morgan will retain 37.5%. Since AL NGPL's only substantive
asset is its investment in NGPL Holdings, S&P assesses its credit
profile under its NCEI methodology. S&P's rating incorporates AL
NGPL's financial ratios, the stability of NGPL Holdings' cash flow,
AL NGPL's ability to influence NGPL Holdings' financial policy, and
its ability to liquidate its investment in NGPL Holdings to repay
debt.
S&P said, "Despite the aggregate majority ownership, we do not
consider ArcLight to have control over NGPL. Under existing
governance framework, most decisions require supermajority approval
from AL NGPL, ArcLight Fund VIII, and Kinder Morgan. Consequently,
neither ArcLight Entities nor Kinder Morgan can unilaterally
dictate NGPL HoldCo's financial policy. Due to the acquisition, the
ArcLight Entities will now gain the ability to block certain 2/3
voting matters, and we expect AL NGPL and ArcLight Fund VIII to
vote in alignment on key financial and strategic decisions, making
governance and financial policy a positive credit factor in our
assessment of AL NGPL."
S&P expects AL NGPL to receive steady distributions throughout the
life of its debt. NGPL PipeCo operates a large and diverse
long-haul pipeline network, providing natural gas transportation
and storage services in the greater Chicago area, Texas, and the
Louisiana Gulf Coast. As a demand-pull pipeline system, it benefits
from a supportive contract structure that ensures predictable
throughput columns and a high portion of fee-based activities. The
company's significant operational scale and high-quality customer
base are key credit strengths. It also has direct or interconnected
access to all major U.S. shale gas basins, with approximately 97%
of its 2024 transportation revenue secured through take-or-pay
contracts. Given these factors, S&P's positive assessment of AL
NGPL remains unchanged.
S&P said, "Our assessment also incorporates our view that the
ArcLight Entities are better positioned to block certain decisions
at NGPL Holdings, who are required to distribute all available cash
to shareholders on a quarterly basis, and we believe it is
incentivized to sustain or increase these distributions. Major
decisions at NGPL Holdings require supermajority approval, meaning
each ArcLight Entity must agree to any changes in distribution
policy, definition of available cash, debt levels, asset sales, and
budget adjustments, among other matters. Given these dynamics, we
see almost no scenario in which NGPL HoldCo would willingly reduce
dividends to pursue other initiatives that could impair its ability
to meet fixed charges.
"The impact on credit metrics is neutral. We expect AL NGPL's debt
to EBITDA to be between 6.5x and 7.0x through 2026 driven by our
expectation of slightly lower EBITDA at the pipeline company in
2026. At the same time, we project its EBITDA interest coverage
ratio to improve to between 2.50x and 2.75x through 2026, supported
by steady distributions, the mandatory amortization of its debt, a
75% excess cash sweep, and the repricing of AL NGPL's debt to 250
basis points (bps) from 325 bps in September 2024.
"Our negative assessment of AL NGPL's ability to liquidate its
investment in NGPL Holdings is unchanged due to the company's
private ownership.
"The stable outlook reflects our expectation that AL NGPL will
continue to receive steady cash distributions from NGPL Holdings
underpinned by its take-or-pay contracts and large operational
scale. We expect debt to EBITDA 6.5x-7.0x in the two following
years."
S&P could take a negative rating action on AL NGPL if:
-- Leverage deteriorates to 7.5x or if EBITDA interest coverage
declines to below 1.5x on a forward-looking basis. This could occur
due to lower-than-expected available cash at NGPL Holdings or
debt-financed dividends.
-- NGPL Holdings' credit quality deteriorates such that leverage
at its subsidiary, NGPL PipeCo LLC, exceeds 4.5x. This could occur
if both ArcLight and Kinder Morgan decide to add substantial debt
at NGPL PipeCo to fund growth projects or prolonged increases in
operating expenditure or an inability to renew expiring contracts
at competitive rates.
Although unlikely in the near term, S&P could consider a positive
rating action on AL NGPL if:
-- EBITDA interest coverage exceeds 3x and debt to EBITDA declines
below 5.5x. This could occur if higher-than-expected throughput
volumes at NGPL PipeCo support greater available cash for
distribution; or
-- S&P raises its rating on NGPL PipeCo. This could occur if S&P
Global Ratings-adjusted debt to EBITDA is less than 3.5x on a
consistent basis due to higher-than-expected volumes or debt
repayment.
ALC ENGINEERED: Gets Interim OK to Use Cash Collateral
------------------------------------------------------
ALC Engineered Solutions, LLC got the green light from the U.S.
Bankruptcy Court for the Western District of Missouri to use cash
collateral.
At the hearing held on March 24, the court authorized the Debtor to
use up to $38,000 for payroll expenses and $29,000 for non-payroll
expenses during the first 30 days of its bankruptcy case. The
Debtor filed the case on March 14.
A final hearing is set for April 14.
Over the past few years, the need for funding to support its highly
skilled and technical work has led to the Debtor incurring debts
with the U.S. Small Business Administration, Fund-Ex Solutions
Group, LLC and other lenders while it seeks to maximize its revenue
generating capabilities.
The Debtor is indebted to Always.bank, a Division of 22nd State
Bank, as assignee to Fund-Ex Solutions Group, LLC as a result of a
promissory note and loan security agreement numbered PLP
43827291-02, dated October 20, 2022.
At this time, the Debtor has approximately $42,000, more or less,
on deposit at NBKC Bank.
About ALC Engineered Solutions
Founded in 1983, ALC Engineered Solutions, LLC (doing business as
Kluhsman Machine) is a custom machining company based in Lockwood,
Mo., specializing in precise manufacturing across a variety of
sectors.
ALC filed Chapter 11 petition (Bankr. W.D. Mo. Case No. 25-60147)
on March 14, 2025, listing up to $50,000 in assets and up to $10
million in liabilities. Ryan Wheeler, co-owner and chief executive
officer of ALC, signed the petition.
Judge Brian T. Fenimore oversees the case.
Ryan A. Blay, Esq., at WM Law, PC, represents the Debtor as
bankruptcy counsel.
ALLECOM CORP: Case Summary & 19 Unsecured Creditors
---------------------------------------------------
Debtor: AllEcom Corp.
10406 Kingston Creek Lane
Cypress, TX 77433
Business Description: AllEcomm Corp. is a subcontractor for FedEx,
providing specialized services to support
its operations.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 25-31569
Debtor's Counsel: Anabel King, Esq.
WAUSON|KING
52 Sugar Creek Center Blvd Suite 325
Sugar Land TX 77478
Tel: (281) 242-0303
Email: aking@w-klaw.com
Total Assets: $306,082
Total Debts: $3,310,215
The petition was signed by Kha Pham as president and sole
shareholder.
A full-text copy of the petition, which includes a list of the
Debtor's 19 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/YRNDSFI/AllEcom_Corp__txsbke-25-31569__0001.0.pdf?mcid=tGE4TAMA
ANTERO MIDSTREAM: S&P Affirms 'BB+' Long-Term ICR, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' long-term issuer credit and
debt ratings on Antero Midstream Partners LP (AM) and revised
upward its stand-alone credit profile (SACP) to 'bb+' from 'bb'
reflecting improved credit metrics. The outlook remains stable.
The stable outlook reflects its stable outlook on the company's
parent, Antero Resources Corp. (AR).The stable outlook on AR
reflects its expectation that AR will maintain conservative
financial policies, including allocating approximately half of free
cash flow to debt repayment (after AR has reduced borrowings on its
credit facility and paid-off its bonds maturing in 2026), which
will support financial measures including funds from operations
(FFO) to debt above 60% over the next two years while generating
free cash flow.
AM's stand-alone leverage continues to improve. In 2024, the
partnership used free cash flow to repay outstanding borrowings
under its revolving line of credit facility (RCF). The debt
repayment, in combination with EBITDA growth has led to leverage
slightly below 3x in 2024. S&P said, "We expect AM will continue to
use free cash flow after dividends to reduce debt and repurchase
equity. We also expect leverage to remain between 2.5x and 3.0x
over the near term, supported by stable and growing cash flows.
Specifically, we expect EBITDA growth of $30 million-$55 million in
2025, driven by low-single digit year-over-year throughput growth
and inflation adjustments to AM's fixed fees in addition to
increased distributions from AM's joint ventures."
S&P said, "We continue to view AM as a strategically important
subsidiary of AR and likely to receive implicit support from AR. We
consider AM to be important to AR since almost all of AM's cash
flows come from AR, which we consolidate into AR's financial
statements to reflect our view that it effectively controls AM.
Although, there is no longer a general partner after AM's
consolidation in 2019, we continue to consolidate AM onto AR's
balance sheet for purposes of our credit analysis. We consider the
following factors supportive of this treatment."
-- AR owns 29% of the common shares of AM as of Dec. 31, 2024;
-- AM builds out infrastructure for AR so therefore AR effectively
controls AM's strategy, capital spending, and cash flows; and
-- AM and AR have common management teams.
AM no longer benefits from a rating notch uplift from its
relationship to AR, given its SACP is now 'bb+', which is one notch
below S&P's rating on AR. S&P's rating on AM will remain capped one
notch below AR unless and until credit quality at AM improves such
that it raised its SACP assessment for AM above its current level.
The outlook, as well as the upside scenario for AM reflect that of
AR.
S&P said, "The stable outlook on AR reflects our expectation that
near-term financial measures will improve, including FFO to debt
above 60% and debt to EBITDA of about 1.0x-1.5x over the next two
years even at our midcycle price assumptions, benefiting from flat
to modest production growth, continued debt reduction, and reduced
costs. AR benefits from its high exposure to liquids in its
production stream compared to other producers in the Appalachian
Basin. Additionally, we expect AR to repay borrowings under its
credit facility and its existing 8.375% bonds maturing in 2026
before re-starting its share repurchase program.
"We could lower our rating on AM if we lowered our rating on AR by
more than one notch. Separately, we could lower our rating on AM if
its stand-alone credit quality severely deteriorated such that
leverage exceeds 5x."
Although unlikely within the next two years, S&P could raise its
ratings on Antero Resources if the company:
-- Increases the scale and geographic diversification of its
operations such that it more closely aligns with those of its
higher-rated peers; and
-- Maintains a prudent financial policy and strong financial
measures, including FFO to debt of above 60% including under our
midcycle price deck assumptions.
Separately, S&P could raise its rating on AM if S&P believed its
stand-alone credit profile improved, this could occur if AM
diversifies its counterparties and improves its scale while
maintaining debt to EBITDA of less than 3x.
ARENA GROUP: P. Edmondson Granted 400K Options to Buy Stocks
------------------------------------------------------------
As previously reported, the Board of Directors of The Arena Group
Holdings Inc. appointed Paul Edmondson as interim Chief Executive
Officer on February 12, 2025. On March 3, 2025, the Board approved
Mr. Edmondson as full Chief Executive Officer of the Company.
In connection with his appointment as full Chief Executive Officer,
on March 3, 2025, Mr. Edmondson was granted 400,000 options to
purchase Company common stock under the Company's Amended and
Restated 2022 Stock and Incentive Compensation Plan, with an
exercise price of $1.48. which represents the closing price of
Company's common stock on March 3, 2025, the Company disclosed in a
Form 8-K Report filed with the U.S. Securities and Exchange
Commission.
The Options will vest on the four-year anniversary of the grant
date; provided, however, that the Options shall vest in full and
become exercisable if the Company’s stock price closes at or
above $12.00 per share for thirty consecutive calendar days.
About The Arena Group
Headquartered in New York, The Arena Group Holdings, Inc. --
www.thearenagroup.net -- is a media company that leverages
technology to build deep content verticals powered by anchor
brands
and a best-in-class digital media platform empowering publishers
who impact, inform, educate, and entertain. The Company's strategy
is to focus on key subject matter verticals where audiences are
passionate about a topic category (e.g., sports and finance),
leveraging the strength of its core brands to grow its audience
and
increase monetization both within its core brands and for its
media
publisher partners. The Company's focus is on leveraging its
Platform and brands in targeted verticals to maximize audience
reach, enhance engagement, and optimize monetization of digital
publishing assets for the benefit of its users, its advertiser
clients, and its greater than 40 owned and operated properties, as
well as properties it runs on behalf of independent Publisher
Partners. The Company owns and operates TheStreet, The Spun,
Parade, and Men's Journal, and powers more than 320 independent
Publisher Partners, including the many sports team sites that
comprise FanNation.
Arena Group Holdings reported a net loss of $55.6 million for the
year ended December 31, 2023, compared to a net loss of $70.9
million for the year ended December 31, 2022. As of September 30,
2024, Arena Group Holdings had $114.2 million in total assets,
$251.5 million in total liabilities, $168,000 in mezzanine equity,
and $137.5 million in total stockholders' deficiency.
New York, NY-based Marcum LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated April
1,
2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses, and may need to
restructure its debt to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
ASPIRA WOMEN'S: Jack Schuler and Trust Hold 14.7% Equity Stake
--------------------------------------------------------------
Jack W. Schuler and the Jack W. Schuler Living Trust disclosed in a
Schedule 13D (Amendment No. 17) filed with the U.S. Securities and
Exchange Commission that as of March 6, 2025, they beneficially own
a total of 2,718,692 shares of Aspira Women's Health Inc.'s common
stock, par value $0.001 per share. This represents approximately
14.7% of the 17,675,022 shares outstanding as of January 27, 2025.
the Jack W. Schuler Living Trust may be reached through:
Jack W. Schuler
PO Box 531,
Lake Bluff, IL, 60044
Tel: (520) 906-2991
A full-text copy of Mr. Schuler's SEC Report is available at:
https://tinyurl.com/4mvmdfkt
About Aspira Women's Health
Formerly known as Vermillion, Inc., Aspira Women's Health Inc. --
http://www.aspirawh.com-- is dedicated to the discovery,
development, and commercialization of noninvasive, AI-powered tests
to aid in the diagnosis of gynecologic diseases. OvaWatch and
Ova1Plus are offered to clinicians as OvaSuiteSM. Together, they
provide a comprehensive portfolio of blood tests to aid in the
detection of ovarian cancer for the 1.2+ million American women
diagnosed with an adnexal mass each year. OvaWatch provides a
negative predictive value of 99% and is used to assess ovarian
cancer risk for women where initial clinical assessment indicates
the mass is indeterminate or benign, and thus surgery may be
premature or unnecessary. Ova1Plus is a reflex process of two
FDA-cleared tests, Ova1 and Overa, to assess the risk of ovarian
malignancy in women planned for surgery.
Boston, Massachusetts-based BDO USA, P.C., the Company's auditor
since 2012, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has suffered
recurring losses from operations and expects to continue to incur
substantial losses in the future, which raises substantial doubt
about its ability to continue as a going concern.
Aspira Women's Health reported a net loss of $16.69 million for the
year ended Dec. 31, 2023, compared to a net loss of $29.88 million
for the year ended Dec. 31, 2022. As of June 30, 2024, Aspira
Women's Health had $3.96 million in total assets, $7.67 million in
total liabilities, and $3.7 million in total stockholders' deficit.
AVALON GLOBOCARE: Amends Bylaws to Reduce Quorum Requirement
------------------------------------------------------------
Avalon GloboCare Corp. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that the Avalon Board
approved and adopted an amendment to the Company's Amended and
Restated Bylaws.
The Amendment reduces the quorum at any meeting of stockholders,
except as otherwise required by law or by the Avalon Charter or the
Avalon Bylaws, to one-third of the voting power of the shares of
capital stock outstanding and entitled to vote at the meeting,
present in person, present by remote communication, if applicable,
or represented by proxy.
About Avalon Globocare
Headquartered in Freehold, New Jersey, Avalon GloboCare Corp. --
http://www.avalon-globocare.com/-- is a commercial-stage company
dedicated to developing and delivering innovative, transformative
precision diagnostics and clinical laboratory services. Avalon is
working to establish a leading role in the innovation of diagnostic
testing, utilizing proprietary technology to deliver precise,
genetics-driven results. The Company also provides laboratory
services, offering a broad portfolio of diagnostic tests, including
drug testing, toxicology, and a broad array of test services, from
general bloodwork to anatomic pathology, and urine toxicology.
New York, NY-based Marcum LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated April
15, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses, and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
As of September 30, 2024, Avalon GloboCare had $19,550,633 in total
assets, $14,149,229 in total liabilities, and $5,401,404 in total
equity.
AVALON GLOBOCARE: Eliminates Series A and B Pref Shares Designation
-------------------------------------------------------------------
Avalon GloboCare Corp. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that it previously
designated:
(i) 15,000 shares of preferred stock as Series A Convertible
Preferred Stock, of which no shares remain outstanding as a result
of the exchange agreement entered with Wenzhao Lu on January 9,
2025; and
(ii) 15,000 shares of Series B Preferred Stock, of which no
shares remain outstanding as a result of the surrender of the
Series B Preferred Stock in connection with the redemption and
abandonment agreement with Avalon, Avalon Laboratory Services,
Inc., Laboratory Services MSO, LLC and the other parties signatory
thereto on February 26, 2025.
On March 7, 2025, Avalon filed a Certificate of Elimination
relating to each of the Series A Preferred Stock and the Series B
Preferred Stock with the Secretary of State of the State of
Delaware, thereby terminating the designations of the Series A
Preferred Stock and the Series B Preferred Stock. The Eliminations
of Designation were effective upon filing and eliminated from
Avalon's Amended and Restated Certificate of Incorporation (as
amended and/or restated from time to time, the "Avalon Charter")
all matters set forth in the previously-filed Certificates of
Designations with respect to the previously designated Series A
Preferred Stock and Series B Preferred Stock.
About Avalon Globocare
Headquartered in Freehold, New Jersey, Avalon GloboCare Corp. --
http://www.avalon-globocare.com/-- is a commercial-stage company
dedicated to developing and delivering innovative, transformative
precision diagnostics and clinical laboratory services. Avalon is
working to establish a leading role in the innovation of diagnostic
testing, utilizing proprietary technology to deliver precise,
genetics-driven results. The Company also provides laboratory
services, offering a broad portfolio of diagnostic tests, including
drug testing, toxicology, and a broad array of test services, from
general bloodwork to anatomic pathology, and urine toxicology.
New York, NY-based Marcum LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated April
15, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses, and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
As of September 30, 2024, Avalon GloboCare had $19,550,633 in total
assets, $14,149,229 in total liabilities, and $5,401,404 in total
equity.
B. RILEY FINANCIAL: ReVal Sells Interests for $102-Mil.
-------------------------------------------------------
As previously announced on March 3, 2025, B. Riley Financial, Inc.,
a Delaware corporation and BR Financial Holdings, LLC, a Delaware
limited liability company and a wholly owned subsidiary of the
Company, B. Riley Environmental Holdings, LLC, a Delaware limited
liability company and an indirect subsidiary of the Company, BRF
Investments, LLC, a Delaware limited liability company and an
indirect wholly owned subsidiary of the Company, ReVal Group, LLC,
a Delaware limited liability company and an indirect subsidiary of
the Company, Atlantic Coast Recycling, LLC, a Delaware limited
liability company and an indirect subsidiary of the Company,
Atlantic Coast Recycling of Ocean County, LLC, a Delaware limited
liability company and an indirect subsidiary of the Company,
entered into an Membership Interest Purchase Agreement, dated as of
March 1, 2025, by and among Atlantic Coast Recycling Holdings,
Inc., a Delaware corporation and certain Seller Parties with
respect to the sale of all of the issued and outstanding membership
interests in each of the Atlantic Companies to the Purchaser. The
closing of the transactions contemplated by the MIPA occurred on
March 3, 2025.
The Company disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that at the Closing, the Member
sold the Interests to the Purchaser for a purchase price of
approximately $102.5 million, subject to certain adjustments and a
holdback amount pending receipt of a certain third party consent,
resulting in cash proceeds of $68.6 million to the Company after
adjustments for amounts allocated to non-controlling interests,
repayment of contingent consideration, transaction costs and other
items directly attributable to the closing of the transaction.
Of the approximately $68.6 million of cash proceeds received by B.
Riley, approximately $22.6 million was used to pay interest, fees,
and principal on B. Riley's Oaktree credit facility. The principal
balance of the Oaktree credit facility was reduced to a balance of
approximately $139 million on March 7, 2025. B. Riley also expects
to report a gain of approximately $30 million in the first quarter
as a result of the ReVal Transaction.
About B. Riley Financial
B. Riley Financial, Inc. -- http://www.brileyfin.com/-- is a
diversified financial services company that delivers tailored
solutions to meet the strategic, operational, and capital needs of
its clients and partners. B. Riley leverages cross-platform
expertise to provide clients with full service, collaborative
solutions at every stage of the business life cycle. Through its
affiliated subsidiaries, B. Riley provides end-to-end financial
services across investment banking, institutional brokerage,
private wealth and investment management, financial consulting,
corporate restructuring, operations management, risk and
compliance, due diligence, forensic accounting, litigation
support,
appraisal and valuation, auction, and liquidation services. B.
Riley opportunistically invests to benefit its shareholders, and
certain affiliates originate and underwrite senior secured loans
for asset-rich companies.
As of June 30, 2024, B. Riley Financial had $3.2 billion in total
assets, $3.4 billion in total liabilities, and $143.1 million in
total deficit.
BEACON ROOFING: S&P Places 'BB-' ICR on CreditWatch Developing
--------------------------------------------------------------
S&P Global Ratings placed all of its ratings on Beacon Roofing
Supply Inc., including the 'BB-' issuer credit rating, on
CreditWatch with developing implications.
On March 20, 2025, QXO Inc. and Beacon Roofing announced they had
entered into a definitive merger agreement, under which QXO will
acquire Beacon for $124.35 per share in cash.
The CreditWatch placement reflects the uncertainty regarding how
the transaction will affect Beacon's capital structure and
leverage.
The CreditWatch placement follows the announcement that QXO Inc.
and Beacon Roofing Supply Inc. entered into a definitive merger
agreement, under which QXO will acquire Beacon for $124.35 per
share in cash. The deal, which is still subject to shareholder
approval and the fulfillment of customary closing conditions, has
been approved by the boards of both companies.
The CreditWatch developing placement reflects the uncertainty
around how the transaction will affect Beacon's capital structure
and leverage. S&P expects to resolve the CreditWatch at or near the
close of the transaction, which is tentatively targeted by the end
of April 2025.
BEELINE HOLDING: Receives Nasdaq Approval for New Listing
---------------------------------------------------------
Eastside Distilling, Inc. d/b/a Beeline Holdings (Nasdaq: BLNE)
announced that its application for a new Nasdaq listing has been
officially accepted. The new listing requirement follows the change
of control resulting from the company's merger with Beeline
Financial Holdings, Inc. and shareholder approval of the change of
control on March 7, 2025.
Additionally, the company confirmed that shareholders also approved
its name change to Beeline Holdings, Inc. on March 7, 2025,
effective March 12, 2025. The new name aligns with Beeline's
strategic focus on its AI-driven online mortgage business,
reinforcing its commitment to innovation in the industry.
Nick Liuzza, the newly appointed Chief Executive Officer of
Beeline, expressed confidence in the company's trajectory, stating,
"This milestone marks just the beginning of an exciting new chapter
for Beeline. With strong momentum behind our technology and
business development initiatives, we look forward to sharing more
updates in the near future as we continue to drive forward
innovation in the mortgage space."
To meet the minimum price requirement for its new Nasdaq listing,
Beeline implemented a 1-for-10 reverse stock split of its common
stock, effective March 12, 2025. Following the split, every ten
shares of issued and outstanding common stock would be converted
into one share. The company's common stock will continue trading on
Nasdaq under the symbol "BLNE" with a new CUSIP number assigned
post-split.
About Beeline Financial Holdings, Inc.
Beeline Financial Holdings, Inc. is a technology-driven mortgage
lender and title provider building a fully digital, AI-powered
platform that simplifies and accelerates the home financing
process. Headquartered in Providence, RI, Beeline Financial
Holdings, Inc. is dedicated to transforming the mortgage industry
through innovation and customer-focused solutions. It is a
wholly-owned subsidiary of Beeline Holdings and owns Beeline Loans
and Beeline Labs.
About Eastside Distilling
Headquartered in Portland, Oregon, Eastside Distilling, Inc. (d/b/a
Beeline Holdings) has been producing craft spirits in Portland,
Oregon since 2008. The Company is distinguished by its highly
decorated product lineup that includes Azunia Tequilas, Burnside
Whiskeys, Hue-Hue Coffee Rum, and Portland Potato Vodkas. All
Eastside spirits are crafted from natural ingredients for the
highest quality and taste. Eastside's Craft Canning + Printing
subsidiary is one of the Northwest's leading independent mobile
canning, co-packing, and digital can printing businesses.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's former
auditor, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company suffered a net loss from
operations and used cash in operations, which raises substantial
doubt about its ability to continue as a going concern.
Eastside Distilling incurred a net loss of $7.5 million during the
year ended December 31, 2023. As of June 30, 2024, Eastside
Distilling had $16,589,000 in total assets, $18,523,000 in total
liabilities, and $1,934,000 in total stockholders' deficit.
BLOOMIN' BRANDS: S&P Alters Outlook to Negative, Affirms 'BB-' ICR
------------------------------------------------------------------
S&P Global Ratings revised its outlook on Tampa, Fla.-based casual
dining company Bloomin' Brands Inc. to negative from positive and
affirmed its 'BB-' issuer credit rating.
S&P said, "We also lowered the rating on Bloomin's senior secured
credit facility due in 2029 to 'BB' from 'BB+' and revised the
recovery rating to '2' from '1', reflecting our expectation for
substantial recovery (70%-90%; rounded estimate: 85%) in the event
of default.
"Finally, we lowered the rating on Bloomin's senior unsecured notes
due in 2029 to 'B' from 'BB-' and revised the recovery rating to
'5' from '4', reflecting our expectation for negligible recovery
(0%-10%; rounded estimate: 5%).
"The negative outlook reflects our expectation that Bloomin's
traffic declines will persist this year, with modest sales
contraction and costs related to implementation of various
initiatives expected to weigh on margins in an increasingly
challenging and competitive environment, and leverage of 4x.
"The negative outlook reflects our expectation for leverage of 4x
over the next 12 months. Bloomin' underperformed the industry in
the fourth quarter of 2024 and lost share by 260 basis points (bps)
on sales and 410 bps on traffic. Except for its Fleming's
restaurants (up 3%), comparable sales were down in the quarter
about 1%-2% at the company's other three brands. We expect similar
results in 2025 as more discerning consumers move to a combination
of lower-priced and sharper- or lower-priced away-from-home dining
options, or even home dining. Our projection incorporates reduced
traffic from reduced promotions and menu rationalization of up to
20%, partially offset by higher prices. While we believe the former
will drive more sustainable traffic in the long term, we expect the
customer-adjustment period to extend into 2026. Thus, we project
reported free operating cash flow (FOCF) of $45 million this year,
compared to a cash burn of $14 million in 2024, as the company
dramatically slows new unit growth and lowers capital expenditure
(capex) to $190 million-$210 million this year from $220 million
last year."
Bloomin's increase in debt over 2024 came as its EBITDA generation
declined. Bloomin' maintained high borrowings under its $1.2
billion senior secured credit facility--more than $600 million
throughout 2024 (funding share repurchases, warrant retirements,
and dividends). Over the year, S&P Global Ratings-adjusted debt
increased approximately 14%. Over that same period, S&P Global
Ratings-adjusted EBITDA fell nearly 30% year-over-year to $538
million in 2024 from $748 million in 2023. S&P forecasts that will
remain $530 million-$540 million in 2025 amid several
performance-improvement investments.
Bloomin recently announced the goal to franchise more than 30% of
its total restaurants. As of the close of the Brazil transaction,
the company operates nearly 70% of its units and is directly
exposed to fluctuations in commodity prices, wage inflation, and
other restaurant-related operating cost pressures, as well as
ongoing capital investment needs. S&P said, "In our view, the
casual dining segment is more subject to volatility from underlying
economic fluctuations, and we believe intense competitive dynamics
will return as the industry fights for traffic and share. We
continue to apply a negative one-notch comparable rating analysis
modifier to our anchor score on Bloomin' to reflect these risks."
Bloomin's partial sale of its Brazil operation marks a turnaround
in what once was a company growth driver. The segment slowed in
2024, with comparable restaurant sales falling 1.4% on a 4.4%
traffic decline, partially offset by 2.6% average check increase.
This compares to 5.5% in 2023 on 1.1% traffic decline and 6.5%
average check increase and 38.3% in 2022 on 23.6% traffic growth
and 14.6% average check increase. The refranchising of the
Brazilian operations will derisk the company by shifting operations
to local partners and allow management capacity to focus on the
company-owned business. The company plans to use the $225 million
in proceeds ($104 million received Dec. 30, 2024, and $96 million
coming Dec. 30, 2025) to repay its revolver.
S&P said, "The negative outlook reflects our expectation that
Bloomin's traffic declines will persist this year, with modest
sales contraction and costs related to the implementation of
initiatives expected to weigh on margins in an increasingly
challenging and competitive environment, with leverage of 4.
"We could lower the rating over the next 12 months if operating
performance falls short of our forecast, including weaker margins
and cash flow, keeping leverage above 4x.
"We could revise the outlook to stable over the next 12 months if
the company limits traffic losses to industry averages (maintaining
market share) while improving EBITDA margins and maintains S&P
Global Ratings-adjusted leverage below 4x, with consistent and
significant annual FOCF generation."
BURGESS BIOPOWER: Seeks to Extend Plan Exclusivity to June 9
------------------------------------------------------------
Burgess BioPower, LLC and Berlin Station, LLC asked the U.S.
Bankruptcy Court for the District of Delaware to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to June 9 and August 4, 2025, respectively.
The Debtors claim that given the discretion afforded to the Court
in determining "cause" and their substantial progress in these
Chapter 11 Cases, including, but not limited to, the Debtors' entry
into and the Court's approval of the Lender Settlement Agreement
and the City Settlement, the Debtors submit that each of these
factors have been met and, therefore, cause exists to extend the
Exclusive Periods.
First, this case is of a meaningful size and complexity. The
Debtors have over $100 million in pre-petition secured debt, and
needed to negotiate and obtain DIP financing at the beginning of
the case. Also at the beginning of the case, the Debtors and their
professionals were consumed by an intensive and fast moving
litigation with Eversource. At the same time, the Debtors
negotiated, drafted, and filed a proposed plan, which plan featured
a "toggle" between a sale and a restructuring.
Over the course of the case, the Debtors continued to focus on
soliciting potential buyers and/or plan proponents and negotiating
with those entities, while, at the same time, negotiating and
entering various settlements with parties. The Debtors' business
and capital structure are sufficiently complex that these
discussions have taken some time. In addition, and as a result of
the Lender Settlement approved at the end of December 2024, the
Debtors are negotiating with new Lenders who are conducting their
own diligence and formulating their exit strategy.
Second, the Debtors and their professionals have made significant
progress in moving the Chapter 11 Cases towards a successful
completion. Since the Petition Date, the Debtors have, among other
things: (i) obtained successful resolution of their dispute with
Eversource; (ii) entered into new operational arrangements to
enable them to sell power on a merchant basis; (iii) fully
transitioned to merchant operations, (iv) solicited potential
purchasers and plan sponsors; (v) complied with all their reporting
obligations including filing their Schedules and Statements and
monthly operating reports; (vi) obtained approval for their
disclosure statement and solicited acceptances to their initial
proposed plan; (vii) established bar dates and provided notice
thereof to all parties; (viii) handled the various other tasks
related to the administration of the Debtors' bankruptcy estates
and the Chapter 11 Cases and (ix) reached settlement with major
parties including, without limitation, the City of Berlin.
Third, creditors will not be harmed by the extension of the
Exclusive Periods, and this is only the Debtors' fourth motion to
extend the Exclusive Periods. The Debtors are not seeking an
extension of the Exclusive Periods to delay administration of the
Chapter 11 Cases, but rather to allow the Debtors to continue to
maximize the value of their estates and proceed through the plan
confirmation process. More specifically, at the time of the filing
of this Motion, the parties continue to actively engage in
additional settlement discussions related to the formulation of the
plan and exit from chapter 11.
Co-Counsel for the Debtors:
Chantelle D. McClamb, Esq.
GIBBONS P.C.
300 Delaware Ave., Suite 1015
Wilmington, DE 19801
Tel: (302) 518-6300
Email: cmcclamb@gibbonslaw.com
- AND -
Robert K. Malone, Esq.
Kyle P. McEvilly, Esq.
GIBBONS P.C.
One Gateway Center
Newark, New Jersey 07102
Tel: (973) 596-4500
E-mail: rmalone@gibbonslaw.com
kmcevilly@gibbsonlaw.com
Co-Counsel for the Debtors:
Alison D. Bauer, Esq.
William F. Gray, Jr., Esq.
Jiun-Wen Bob Teoh, Esq.
FOLEY HOAG LLP
1301 Avenue of the Americas, 25th Floor
New York, New York 10019
Tel: (212) 812-0400
Email: abauer@foleyhoag.com
wgray@foleyhoag.com
jteoh@foleyhoag.com
- and -
Kenneth S. Leonetti, Esq.
Christian Garcia, Esq.
FOLEY HOAG LLP
155 Seaport Boulevard
Boston, Massachusetts 02210
Tel: (617) 832-1000
Email: ksl@foleyhoag.com
cgarcia@foleyhoag.com
About Burgess BioPower
Burgess BioPower, LLC and its affiliates are renewable energy power
companies that own and operate a 75-megawatt biomass-fueled power
plant located on an approximately 62-acre site in Berlin, New
Hampshire. Berlin Station owns the facility and the facility site,
and Burgess BioPower leases the facility pursuant to a long-term
lease. Burgess BioPower also holds the necessary regulatory
licenses for the operation of the facility.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10235) on Feb. 9,
2024, with $10 million to $50 million in assets and $100 million to
$500 million in liabilities. Dean Vomero, chief restructuring
officer, signed the petitions.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Foley Hoag, LLP as general bankruptcy counsel;
Gibbons P.C. as Delaware counsel; and SSG Capital Advisors, L.P. as
investment banker.
CATHOLIC FAITH: Case Summary & 15 Unsecured Creditors
-----------------------------------------------------
Debtor: Catholic Faith Store, LLC
d/b/a Heartland Store
8344 Alden Street
Lenexa, KS 66215
Business Description: Catholic Faith Store is an online retailer
specializing in Catholic religious products,
including jewelry, rosaries, Bibles, and
sacramental gifts. Since 2005, the Company
has been dedicated to providing meaningful
religious items for various occasions such
as baptisms, communions, ordinations and
weddings.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
District of Kansas
Case No.: 25-20342
Judge: Hon. Dale L Somers
Debtor's Counsel: Colin Gotham, Esq.
EVANS & MULLINIX, P.A.
7225 Renner Road, Suite 200
Shawnee, KS 66217
Tel: (913) 962-8700
Fax: (913) 962-8701
E-mail: cgotham@emlawkc.com
Total Assets as of March 18, 2025: $1,761,497
Total Liabilities as of March 18, 2025: $1,823,178
The petition was signed by Richard King as managing partner.
A full-text copy of the petition, which includes a list of the
Debtor's 15 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/RWZWL5Q/Catholic_Faith_Store_LLC__ksbke-25-20342__0001.0.pdf?mcid=tGE4TAMA
CEDERMERE LLC: Sec. 341(a) Meeting of Creditors on April 17
-----------------------------------------------------------
On March 17, 2025, Cedermere LLC filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Eastern District of New York.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under Section 341(a) meeting to be held on
April 17, 2025 at 02:00 PM at Telephonic Meeting: Phone 1 (877)
988-1229, Participant Code 6493694#.
About Cedermere LLC
Cedermere LLC is a single asset real estate debtor, as defined in
11 U.S.C. Section 101(51B).
Cedermere LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 25-71001) on March 17, 2025. In its
petition, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
Honorable Bankruptcy Judge Alan S. Trust handles the case.
The Debtor is represented by:
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
CINEMARK HOLDINGS: Board OKs $200MM Share Repurchase Program
------------------------------------------------------------
Cinemark Holdings, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on March 6, 2025,
the Board of Directors of the Company approved a share repurchase
program.
Under the Program, the Company is authorized to repurchase up to
$200 million of its outstanding stock. The Program may be executed
from time to time through a combination of open market purchases,
privately negotiated transactions, pursuant to Rule 10b5-1 trading
plan, or other means in accordance with federal securities laws.
This Program will commence on March 11, 2025, continuing until the
authorized repurchase amount is reached, or the Board suspends or
terminates the Program, whichever occurs first.
All or part of the repurchase may be implemented under a Rule
10b5-1 trading plan, which would allow the Company to repurchase
shares under pre-set terms at times when it might otherwise be
prevented from doing so under insider trading laws or self-imposed
blackout periods. Subject to the terms of any 10b5-1 plan, the
actual timing, volume and nature of repurchases under the Program
will be determined by management at its discretion and will depend
on a number of factors, including market conditions, the price of
the Company's stock and other factors as determined by management.
Repurchases under the Program will be funded using the Company's
available cash and will be made in accordance with applicable
securities laws and other requirements. The Program does not
obligate the Company to acquire any particular amount of common
stock and may be suspended or discontinued at any time at the
Company's discretion.
The Company is implementing the Program to facilitate opportunistic
open market share repurchases and proactively mitigate potential
dilution associated with the settlement of its convertible notes
maturing in August 2025 and the related call spread. The Company
believes that the stock repurchase program is in the best interests
of its shareholders and reflects the Company's confidence in its
long-term business prospects.
About Cinemark Holdings Inc.
Headquartered in Plano, Texas, Cinemark Holdings, Inc. operates as
a movie theater.
* * *
Egan-Jones Ratings Company on November 11, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Cinemark Holdings, Inc. to CCC+ from CCC.
CITIUS PHARMACEUTICALS: Three Proposals Approved at Annual Meeting
------------------------------------------------------------------
Citius Pharmaceuticals, Inc. held its 2025 annual meeting of
stockholders during which its stockholders elected the following
seven members to the Board of Directors for a one-year term
expiring at the annual meeting of stockholders to be held in 2026
or until their successors are duly elected and qualified:
1. Leonard Mazur
2. Myron Holubiak
3. Suren Dutia
4. Dr. Eugene Holuka
5. Dennis M. McGrath
6. Robert Smith
7. Carol Webb
Next, at the Annual Meeting, the stockholders approved on a
non-binding advisory basis its executive compensation. The vote for
such approval was 1,943,011 shares for, 1,196,649 shares against,
145,916 shares abstaining, and 1,969,380 broker non-votes.
The stockholders did not approve the proposal to amend the
Company's Articles of Incorporation to increase the authorized
number of shares from 26,000,000 to 260,000,000 and the authorized
number of common shares from 16,000,000 to 250,000,000. The vote
was 3,222,490 shares for, 1,934,414 shares against, 35,367 shares
abstaining, and no broker non-votes.
Finally, the stockholders ratified the selection of Wolf & Company,
P.C. as Citius' independent registered public accounting firm for
the fiscal year ending September 30, 2025. The vote for such
ratification was 4,466,905 shares for, 592,161 shares against,
133,206 shares abstaining, and no broker non-votes.
The Company did not seek adjournment of the Annual Meeting and
therefore the proposal to adjourn the Annual Meeting to continue to
solicit votes was moot.
About Citius Pharmaceuticals
Headquartered in Cranford, N.J., Citius Pharmaceuticals, Inc., is a
biopharmaceutical company dedicated to the development and
commercialization of first-in-class critical care products. The
Company's goal generally is to achieve leading market positions by
providing therapeutic products that address unmet medical needs yet
have a lower development risk than usually is associated with new
chemical entities. New formulations of previously approved drugs
with substantial existing safety and efficacy data are a core
focus. The Company seeks to reduce development and clinical risks
associated with drug development yet still focus on innovative
applications.
Boston, Massachusetts-based Wolf & Company, P.C., the Company's
auditor since 2014, issued a "going concern" qualification in its
report dated Dec. 27, 2024, citing that the Company has suffered
recurring losses and has a working capital deficit as of Sept. 30,
2024. These conditions raise substantial doubt about the Company's
ability to continue as a going concern.
CLYDESDALE ACQUISITION: Fitch Assigns 'BB' First-Time LongTerm IDR
------------------------------------------------------------------
Fitch Ratings has assigned Clydesdale Acquisition Holdings Inc.
(d/b/a Novolex) a first-time 'BB' Long-Term Issuer Default Rating
(IDR). The Rating Outlook is Stable. Fitch also assigned the
company's proposed and existing revolver and senior secured debt a
'BB+' rating with a Recovery Rating of 'RR2' and its unsecured debt
a rating of 'BB'/'RR4'.
Clydesdale's merger with Pactiv Evergreen (PTVE) significantly
impacts its ratings by positioning it as a market leader in
foodservice packaging. The regional production and distribution
facilities enhance Clydesdale ability to efficiently fulfill
customer needs, establish a defensible asset, reduces shipping
costs and provides a competitive edge.
The company's diverse portfolio of long-standing blue-chip
customers with multi-year contracts mitigate concentration risks,
while synergies are expected to aid debt reduction. Despite initial
high leverage at 6.2x, Clydesdale's deleveraging capacity is
supported by consistent cash flow and cost pass-through. Aligning
leverage with Fitch's rating sensitivities by the end of the
forecast period is critical for the rating.
Key Rating Drivers
Acquisition Creates Segment Leader: The proposed merger with Pactiv
Evergreen (PTVE) positions Clydesdale as the market leader in
foodservice packaging, with pro forma annual revenues of
approximately $9 billion and $1.5 billion in EBITDA. This makes it
several times larger than its nearest competitor, offering the
broadest product range in a fragmented market. Clydesdale's
regional mixing centers and distribution facilities enhance
efficient customer fulfilment, representing a highly defensible
asset. The merger complements Clydesdale's strengths in carry-out
and delivery packaging with Pactiv's drinkware, containers, and
grocer packaging.
Fitch recognizes that Clydesdale's broadened geographic presence
and strategically located manufacturing facilities near customers
reduce shipping and transportation costs. This positions the
company as a low-cost manufacturer with sustainable competitive
advantage.
Solid Deleveraging Capacity: Fitch estimates Clydesdale's pro forma
EBITDA leverage at approximately 6.2x, with strong capacity to
deleverage through the forecast period. While initial leverage is
high, aligning leverage with the rating by 2026 is critical for the
credit profile. Free cash flow is estimated at $325 million
annually before synergies, increasing to $475 million after
synergies, supporting deleveraging. Fitch assumes most of the free
cash flow will target debt repayment to achieve management's
leverage goal below 4.0x later in the forecast period.
Consistent Cash Flow: The combined company's consistent cash flow
generation supports the rating. Both predecessor firms had strong
operating cash flow generation at or above 5%, bolstering free cash
flow and creating deleveraging capacity through the forecast
period. Additionally, the foodservice market has historically been
defensive, with modest and temporary slowdowns during economic
down-cycles and a long-term positive growth trajectory. These
factors lead to high cash flow visibility throughout the forecast
period.
Effective Cost Pass-Through: Customer contracts comprise over
80%-85% of sales, with the vast majority of contracts containing
pass-through mechanisms, safeguarding margins against variable
input costs, such as resin and fiber. Additionally, a portion of
non-contracted sales is tied to market prices and input costs,
allowing for movement with raw material indices. Predecessor firms
have focused on material management and secured contract terms that
allow for the pass-through of raw material price fluctuations to
customers, supporting stable EBITDA margins consistently in the
mid-teens.
Managed Customer Concentration Risks: Clydesdale has customer
concentration with high credit quality counterparties. Its top 10
customers account for 39% of pro forma fiscal 2024 revenues. This
is mitigated by multi-year contracts with long-standing blue-chip
customers, like McDonald's, Starbucks, Walmart, and Amazon.
Exposure across high- and low-end price and value spectrums
somewhat mitigates the risk of customers trading down during
recessions. A high number of products, over 38,000 unique SKUs,
also mitigates single product exposure. Industry consolidation
among customers may exert downward pricing pressure over the long
term, likely beyond the forecast horizon.
Reliance on Synergies: Synergy realization is expected to
facilitate debt reduction significantly. Management projects up to
$250 million in annual EBITDA cost synergies by year three, aiding
deleveraging within the forecast period. Fitch believes prospective
synergies are reasonable, driven by procurement, SG&A savings, and
operations, which are typically achievable in the packaging
industry. Growth synergies are more speculative but reasonable,
given opportunities for cross-selling and sales expansion. Fitch
assumes the bulk of expected synergies are realized in its ratings
case.
Peer Analysis
Silgan Holdings Inc. (BB+/Stable) and Clydesdale share similar
EBITDA margins due to cost-pass through and a focus on stable
consumer end-markets. Silgan's higher FCF margin and conservative
net leverage target of 2.5x-3.5x supports its higher rating.
Clydesdale's leverage is expected to approach 4.5x through debt
reduction and EBITDA expansion by 2027.
Berry Global Group, Inc.'s (BB+/ Positive Watch) merger with Amcor
forms one of the world's largest packaging companies, over twice
the size of Clydesdale. This combination enhances global geographic
diversification, with Amcor committed to an IG credit rating and
net leverage target of 2.5x to 3.5x. Berry benefits from more
diversified end-markets, including health care, personal care, and
food & beverage, which increases margin stability.
Sylvamo Corporation (BB+/Stable) offsets its exposure to a
declining paper industry by operating facilities at the lowest end
of the global cost curve and consistently maintaining leverage
lower than peers. Sylvamo has consistently maintained EBITDA
leverage of around 1.5x. Clydesdale's higher leverage is more
consistent with the industry and also has exposure to stable and
growing end market in food & beverage.
Non-Rated Peer
O-I Glass, Inc. is the world's largest glass packaging company. A
substrate that supports higher margins but involves higher capex
expenses compared to plastic and fiber packaging, affecting FCF
generation for manufactures like O-I Glass. As Clydesdale leverages
its stronger FCF generation to reduce gross debt and align EBITDA
leverage with O-I Glass, Fitch views Clydesdale's product offering
as having greater cash flow visibility.
Key Assumptions
- The merger between Clydesdale and Pactiv is completed under the
publicly announced terms;
- Clydesdale draws on the DDTL to repay legacy Pactiv notes due
2025;
- Revenue assumptions slightly above Fitch US GDP forecast due to
cross-selling capabilities;
- Fitch assumes FCF is used for annual debt repayments between $400
million per year and $500 million per year, approaching leverage
target of below 4.0x;
- Fitch assumes the bulk of identified cost synergies are realized
by 2027;
- SOFR assumptions are 3.94% in 2025, 3.46% in 2026, 3.49% in 2027,
and 3.59% in 2028.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA Leverage consistently above 5.5x;
- Weakening of existing leverage target;
- Weakened FCF generation or failure to use FCF for substantial
gross debt reduction;
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Demonstrated commitment to maintaining EBITDA Leverage
consistently below 4.5x;
- EBITDA margin expansion sustained in the upper-teen range driven
by a combination of higher value mix and/or further cost
reduction.
Liquidity and Debt Structure
Clydesdale has $324 million of cash on hand and full availability
under its $1.03 billion revolver. Fitch believes the large revolver
availability and the company's strong cash flow generation ability
provides robust liquidity to support the company in recessionary
environments.
Fitch sees the company's debt maturities as manageable as the next
maturity is not until 2029, at which point cost synergies and gross
debt reduction should make refinancing at better rates
Issuer Profile
Clydesdale Acquisition Holdings, Inc. develops and manufactures
diverse packaging products for multiple industries in the
foodservice, delivery and carryout, food processor and industrial
markets that touch nearly every aspect of daily life.
Date of Relevant Committee
14-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
----------- ------ --------
Clydesdale Acquisition
Holdings, Inc. LT IDR BB New Rating
senior unsecured LT BB New Rating RR4
senior secur LT BB+ New Rating RR2
COGENT COMMUNICATIONS: S&P Affirms 'B+' Issuer Credit Rating
------------------------------------------------------------
S&P Global Ratings revised its outlook on Communications Group LLC
to negative from stable. At the same time, S&P affirmed the 'B+'
issuer credit rating and all debt ratings on the company.
The negative outlook reflects the risk that leverage could remain
above S&P's 5.25x threshold in the next year due to higher debt to
support near-term discretionary cash flow (DCF) deficits as
payments from T-Mobile decline. Cogent must demonstrate solid
execution in realizing synergies from the Sprint wireline assets
and achieve strong growth from its Wavelength product in order to
reduce leverage.
S&P said, "The negative outlook reflects our view that Cogent's
leverage will be above our downgrade trigger in the next year. As
of year-end 2024, Cogent increased leverage to 5.5x from 4.3x in
2023, significantly higher than our previous expectation of 4.8x.
We revised our base-case forecast and now project that leverage
will remain above our 5.25x downgrade threshold over the next 12
months due to relatively flat organic revenue and EBITDA growth."
Cogent is converting its old Sprint facilities into data center
space, which it plans to lease or sell. Despite substantial
progress, additional work is required, which we expect to conclude
by mid-2025. It will keep EBITDA flat in 2025 due to elevated
network operating expenses. Top-line growth also faces challenges
as the company continues to phase out noncore products and
customers. S&P said, "We expect this process will be completed in
the coming quarters, which should help mitigate margin degradation
from elevated operating expenses this year. However, we expect
leverage will increase slightly in 2025 to 5.7x if the company
issues debt to fund DCF deficits."
Additionally, despite the termination of a sizable lease in 2024,
total finance lease obligations increased by over $50 million
during the year due to new leases to help Cogent reconfigure its
metro networks to support Wavelengths, which constrained our
adjusted leverage calculation. While S&P expects that Cogent will
terminate some leases once it fully completes its Wavelength
enablement, leverage will remain above its downgrade trigger in
2025.
The potential for significant growth in Wavelength revenue
underpins deleveraging in 2026 and beyond. In 2024, the business
represented less than 2% of total revenues. S&P said, "We expect
substantial growth based on a robust backlog and reduced
provisioning times (down to 30 days). Under our base-case forecast,
we expect growth from Wavelength revenue will enable Cogent to
reduce leverage to about 4.8x by 2026, comfortably below our
downgrade thresholds for the 'B+' rating. Moreover, the company is
well-positioned to capitalize on several tailwinds, including
advancements in AI, increasing data traffic, and increasing
enterprise demand for low-latency data transmission. However,
should Cogent underperform or these favorable trends don't
materialize, leverage could remain above 5.25x for an extended
period, potentially leading us to lower our ratings."
S&P said, "We expect free operating cash flow (FOCF) to decline in
2025. We forecast about $40 million of reported FOCF in 2025, up
from roughly breakeven reported FOCF in 2024. Cogent's elevated
expenses associated with data center refurbishment, coupled with
subdued growth in its core business, contribute to these
challenges. We do not expect these elevated expenses to decline
until mid-2025, when Cogent should return to a more normalized
capital expenditure (capex) annual run-rate of $100 million."
DCF continues to be negative in 2025 as the company maintains its
high dividend. Since its inception, the company has consistently
returned value to shareholders through dividends. S&P said, "Given
our projections for only about $40 million reported FOCF, we
believe it would need to support the approximately $180 million
annual dividend through a combination of external financing and
cash on hand. Deficits should improve as Cogent moderates its
capital spending later this year. Alternatively, while not included
in our base-case scenario, the company has certain noncore assets
it could monetize."
The negative outlook reflects the risk that leverage could remain
above S&P's 5.25x threshold in the next year due to higher debt to
support near-term DCF deficits as payments from T-Mobile wind down.
Cogent must demonstrate solid execution in realizing synergies from
the Sprint wireline assets and achieve strong growth from its
Wavelength product in order to reduce leverage.
S&P could lower its rating on Cogent if:
-- The company encounters execution missteps from its integration
of Sprint's wireline assets;
-- Revenue growth from Wavelengths underperforms S&P's
expectations;
-- Customer churn increases because of competitive pressures or an
economic downturn; or
-- Leverage remains above 5.25x on a sustained basis.
S&P could revise the outlook to stable if Cogent reduces leverage
below 5.25x and maintains FOCF to debt above 5%. This would happen
if it:
-- Increases Wavelength revenue at rates we expect and manages its
lease obligations such that they decline overtime; or
-- Sells noncore assets, using proceeds for debt repayment, or
reduces its common dividend and frees up cash flow for debt
reduction.
COLIANT SOLUTIONS: Gets Final OK to Use Cash Collateral
-------------------------------------------------------
CoLiant Solutions, Inc. received final approval from the U.S.
Bankruptcy Court for the Northern District of Georgia, Atlanta
Division, to use cash collateral.
The court approved the use of cash collateral per a final budget,
allowing the company to pay its operating expenses and debt to
Advance Financial Corporation.
CoLiant Solutions owes $1.7M to Advance Financial, which holds a
secured interest in receivables and other assets of the company.
The U.S. Small Business Administration and Newtek Small Business
Finance, LLC also claim security interests.
As protection, the lenders were granted replacement liens on assets
(excluding proceeds from avoidance action) similar to their
pre-bankruptcy collateral.
Advance Financial is represented by:
Matthew M. Weiss, Esq.
Anna K. MacFarlane, Esq.
Parker, Hudson, Rainer & Dobbs, LLP
303 Peachtree Street NE, Suite 3600
Atlanta, GA 30308
Telephone: (404) 523‑5300
Facsimile: (404) 522-8409
mweiss@phrd.com
amacfarlane@phrd.com
Newtek is represented by:
Todd N. Robinson, Esq.
Michael Wing, Esq.
Robinson Franzman, LLP
191 Peachtree Street NE, Suite 2600
Atlanta, GA 30303
(404) 255-2503
todd@rfllplaw.com
michael@rfllplaw.com
About CoLiant Solutions
CoLiant Solutions Inc. offers safety and security services to
retailers and construction sites nationwide by installing security
and fire alarm systems. Wal-Mart is the Debtor's largest client,
accounting for 50% of its business. Other customers include
construction contractors, food and beverage retailers like Duncan
Brands, and department stores like Dillard's. The Debtor has
physical office locations in Springfield, Illinois, Bentonville,
Arkansas, Modesto, California, and Buford, Georgia.
CoLiant filed Chapter 11 petition (Bankr. N.D. Ga. Case No.
25-51509) on February 12, 2025, listing between $1 million and $10
million in assets and between $10 million and $50 million in
liabilities.
Judge Paul W. Bonapfel oversees the case.
The Debtor is represented by:
William Rountree, Esq.
Rountree Leitman Klein & Geer, LLC
2987 Clairmont Road, Suite 350
Altanta, GA 30329
Tel: 404-584-1238
Email: wrountree@rlkglaw.co
CONCORDE METRO: Case Summary & 14 Unsecured Creditors
-----------------------------------------------------
Debtor: Concorde Metro Seguros LLC
1600 S Federal Hwy
Suite 570
Pompano Beach, FL 33062
Business Description: Concorde Metro Seguros LLC is a single-asset
real estate debtor, as defined in 11 U.S.C.
Section 101(51B). The Company's primary
business involves managing the Metro Medical
Center in Bayamon, Puerto Rico, which serves
as its principal asset.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 25-01269
Debtor's Counsel: Javier Vilarino, Esq.
VILARINO AND ASSOCIATES LLC
PO Box 9022515
San Juan, PR 00902
Tel: (787) 565-9894
E-mail: jvilarino@vilarinolaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Joseph C. Lebas, Jr., as administrator.
A full-text copy of the petition, which includes a list of the
Debtor's 14 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/CUF5UNA/Concorde_Metro_Seguros_LLC__prbke-25-01269__0001.0.pdf?mcid=tGE4TAMA
CONN'S INC: Plan Exclusivity Period Extended to May 4
-----------------------------------------------------
Judge Alfredo R. Perez of the U.S. Bankruptcy Court for the
Southern District of Texas extended Conn's, Inc., and affiliates'
exclusive periods to file a plan of reorganization and obtain
acceptance thereof to May 4 and July 5, 2025, respectively.
As shared by Troubled Company Reporter, the Debtors explain that
the relevant factors strongly favor extensions of the Debtors'
Exclusivity Periods. The relevant factors strongly weigh in favor
of an extension of the Exclusivity Periods:
* The Debtors' Chapter 11 Cases Are Large and Complex. These
cases met the requirements for and were designated as complex
cases. Notice of Designation as Complex Chapter 11 Bankruptcy Case.
As of the Petition Date, the Debtors had approximately $530 million
of funded debt, along with unsecured obligations to various
vendors, contractual counterparties, and, as of the Petition Date,
and thousands of employees and independent contractors worldwide.
Accordingly, this factor weighs in favor of granting an extension
of the Exclusivity Periods.
* The Debtors Have Made Good Faith Progress Towards Exiting
Chapter 11. The Debtors have progressed their cases substantially
since the Petition Date, and are strenuously endeavoring to
formulate and solicit a plan in order to exit chapter 11 in the
near term. The Debtors have spent these cases operating in the
ordinary course and running multiple successful sale processes for
the benefit of all stakeholders. Accordingly, this factor weighs in
favor of granting an extension of the Exclusivity Periods.
* An Extension Will Not Pressure or Prejudice Creditors. The
Debtors are not seeking an extension of the Exclusivity Periods to
pressure or prejudice any of their stakeholders. All parties in
interest have had an opportunity to actively participate in
substantive discussions with the Debtors throughout these chapter
11 cases. As demonstrated throughout these cases, the Debtors have
actively pursued consensual resolutions to reasonable concerns
raised by stakeholders, and the Debtors seek to continue those
efforts as a plan is developed. Accordingly, this factor weighs in
favor of granting an extension of the Exclusivity Periods.
The Debtors' Counsel:
Duston McFaul, Esq.
Jeri Leigh Miller, Esq.
Maegan Quejada, Esq.
SIDLEY AUSTIN LLP
1000 Louisiana Street, Suite 6000
Houston, Texas 77002
Tel: (713) 495-4500
Fax: (713) 495-7799
Email: dmcfaul@sidley.com
jeri.miller@sidley.com
mquejada@sidley.com
- and -
William E. Curtin, Esq.
Michael Sabino, Esq.
787 Seventh Avenue
New York, New York 10019
Tel: (212) 839-5300
Fax: (212) 839-5599
Email: wcurtin@sidley.com
msabino@sidley.com
About Conn's, Inc.
Conn's, Inc., is a retailer of home goods and furniture in The
Woodlands, Texas.
Conn's and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 24-33357) on
July 23, 2024. In its petition, Conn's reported $1 billion to $10
billion in both assets and liabilities.
Judge Jeffrey P. Norman oversees the cases.
The Debtors tapped Duston K. McFaul, Esq., at Sidley Austin, LLP as
legal counsel; Houlihan Lokey, Inc. as investment banker; and BRG
Capital Advisors, LLC, as interim management services provider.
Epiq Corporate Restructuring, LLC, is the Debtors' notice and
claims agent.
COWAN FITNESS: Case Summary & Five Unsecured Creditors
------------------------------------------------------
Debtor: Cowan Fitness South Round Rock LLC
661 Louis Henna Blvd
Round Rock, TX 78664-4109
Business Description: Cowan Fitness, also known as Orangetheory
Fitness, is a global fitness studio
franchise that specializes in heart-rate-
based interval training through group
classes. The Company's unique workout
combines cardio and strength exercises to
help members burn calories, build muscle,
and improve overall fitness. Using real-
time data tracking through the OTconnect
system, Orangetheory personalizes each
participant's workout to optimize results.
With locations worldwide, the Company
focuses on creating a supportive community
where individuals of all fitness levels can
achieve their health and fitness goals.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 25-10395
Judge: Hon. Shad Robinson
Debtor's Counsel: Frank B Lyon, Esq.
FRANK B LYON
PO Box 50210
Austin TX 78763-0210
Tel: (512) 345-8964
E-mail: frank@franklyon.com
Total Assets: $81,003
Estimated Liabilities: $1,006,184
The petition was signed by Greg Cowan as managing member.
A full-text copy of the petition, which includes a list of the
Debtor's five unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/7JHEZ5A/Cowan_Fitness_South_Round_Rock__txwbke-25-10395__0001.0.pdf?mcid=tGE4TAMA
DANIMER SCIENTIFIC: Gets Interim Court Okay for $1MM Ch.11 Loan
---------------------------------------------------------------
Vince Sullivan of Law360 Bankruptcy Authority reports that on March
22, 2025, a Delaware bankruptcy judge granted interim approval for
Danimer Scientific to secure $1 million in Chapter 11 financing, as
the plastic alternative maker seeks a buyer for its manufacturing
facilities.
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
DIGITAL ALLY: Securities Delisted from Nasdaq
---------------------------------------------
As previously disclosed, on December 20, 2024, Digital Ally, Inc.,
received notice from the Listing Qualifications Staff of The Nasdaq
Stock Market LLC that the bid price of its listed securities had
closed at less than $1 per share over the previous 30 consecutive
business days, and, as a result, did not comply with Nasdaq Listing
Rule 5550(a)(2). Therefore, in accordance with Listing Rule
5810(c)(3)(A), the Company was provided 180 calendar days, or until
June 18, 2025, to regain compliance with the Minimum Bid Price
Requirement.
As previously disclosed, on January 2, 2025, the Staff notified the
Company that it was not in compliance with Nasdaq Listing Rule
5550(b)(1), which requires companies listed on Nasdaq to maintain a
minimum of $2,500,000 in stockholders' equity for continued
listing. The Company reported stockholders' equity (deficit) of
($2,448,310) in its Quarterly Report on Form 10-Q for the quarter
ended September 30, 2024, and, as a result, did not satisfy the
Stockholders' Equity Requirement pursuant to Listing Rule
5550(b)(1).
The Company disclosed in a Form 8-K filed with the Securities and
Exchange Commission that on March 6, 2025, it received notice from
the Staff that the Staff had determined that as of March 5, 2025,
the Company's securities had a closing bid price of $0.10 or less
for ten consecutive trading days triggering application of Listing
Rule 5810(c)(3)(A)(iii) which states in part: if during any
compliance period specified in Rule 5810(c)(3)(A), a company's
security has a closing bid price of $0.10 or less for ten
consecutive trading days, the Listing Qualifications Department
shall issue a Staff Delisting Determination under Rule 5810 with
respect to that security. As a result, the Staff determined to
delist the Company's securities from Nasdaq, unless the Company
timely requests an appeal of the Staff's determination to a
Hearings Panel, pursuant to the procedures set forth in the Nasdaq
Listing Rule 5800 Series. The Company had until March 13 to request
a hearing.
The Company said it will request a hearing before the Panel to
appeal the March 6 Letter and to address all outstanding matters,
including compliance with the Minimum Bid Price Requirement, the
Low Priced Stocks Rule and the Stockholders' Equity Requirement,
which hearing date has not been set as of the date of this Form
8-K. While the appeal process is pending, the suspension of trading
of the Company's common stock, par value $0.001 per share, will be
stayed and the Common Stock will continue to trade on the Nasdaq
Capital Market until the hearing process concludes and the Panel
issues a written decision. The Company has been informed that
hearings are typically scheduled to occur approximately 30-45 days
after the date of the hearing request. There are no assurances
however, that an extension will be granted or that a favorable
decision will be obtained from the Panel.
About Digital Ally
Headquartered in Lenexa, KS, the business of Digital Ally (NASDAQ:
DGLY) through its subsidiaries, is divided into three reportable
operating segments: 1) the Video Solutions Segment, 2) the Revenue
Cycle Management Segment and 3) the Entertainment Segment. The
Video Solutions Segment is the Company's legacy business that
produces digital video imaging, storage products, disinfectant and
related safety products for use in law enforcement, security and
commercial applications. This segment includes both service and
product revenues through its subscription models offering cloud
and
warranty solutions, and hardware sales for video and health safety
solutions. The Revenue Cycle Management Segment provides working
capital and back-office services to a variety of healthcare
organizations throughout the country, as a monthly service fee.
The
Entertainment Segment acts as an intermediary between ticket
buyers
and sellers within the Company's secondary ticketing platform,
ticketsmarter.com, and the Company also acquires tickets from
primary sellers to then sell through various platforms. For
additional news and information please visit www.digitalally.com
New York, NY-based RBSM LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated April
1,
2024, citing that the Company has incurred substantial operating
losses and will require additional capital to continue as a going
concern. This raises substantial doubt about the Company's ability
to continue as a going concern.
As of September 30, 2024, Digital Ally had $32,263,169 in total
assets, $34,711,479 in total liabilities, and $2,448,310 in total
stockholders' deficit.
DILLONS POWER: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
Dillons Power Washing, LLC received interim approval from the U.S.
Bankruptcy Court for the District of Maryland, Greenbelt Division,
to use cash collateral.
The interim order signed by Judge Maria Ellena Chavez-Ruark
authorized the Debtor to use cash collateral to pay its operating
expenses for the period from March 17 to 31.
Small Business Financial Solutions, LLC, doing business as Rapid
Finance, the U.S. Small Business Administration and four other
creditors may assert interest in the cash collateral, which
consists of rents, accounts and other rights to payment.
As protection for any diminution in the value of their collateral,
these secured creditors will be granted a replacement lien on all
post-petition assets of the Debtor, to the same extent and with the
same priority as their pre-bankruptcy liens.
A final hearing is scheduled for March 31.
The Debtor's Chapter 11 filing is a result of the COVID-19 pandemic
requiring it to take expensive merchant cash advance financing,
creating a debt spiral from which it was not able to emerge.
Recently, a judgment creditor who had provided advertising
services, Clear Channel Outdoors, Inc., began a levy on its assets,
requiring the Debtor to file Chapter 11 to protect its assets.
About Dillons Power Washing LLC
Dillons Power Washing, LLC filed Chapter 11 petition (Bankr. D. Md.
Case No. 25-12231) on March 17, 2025, listing up to $50,000 in
assets and up to $1 million in liabilities. Kathleen Gross,
managing member of Dillons Power Washing, signed the petition.
Judge Maria Ellena Chavez-Ruark oversees the case.
Justin P. Fasano, Esq., at McNamee Hosea, P.A., represents the
Debtor as legal counsel.
DURHAM HOMES: $91K Unsecured Claims to Recover 100% in Plan
-----------------------------------------------------------
Durham Homes USA LLC submitted a Disclosure Statement for Second
Amended Plan of Reorganization dated March 3, 2025.
On January 27, 2025, the Debtor filed a motion to approve the
Settlement Agreement between and among the Debtor, AG6, and Broad
Street.
On February 12, 2025, the Court entered an order approving the
Settlement Agreement. The Settlement Agreement, among other things,
provided for the resolution of the Litigation and the motions,
cross-motions, and objections filed in the Case as well as certain
plan provisions relating to the allowance and payment of the AG6
Claims and Broad Street's Claim and releases to be granted to AG6
and Broad Street, which have been incorporated into this Plan.
The Debtor believes that confirmation of the Plan provides the best
opportunity for maximizing recoveries for the Debtor's creditors
and equity interest holders. Through the Plan, the Debtor will be
able to restructure its debt and provide a meaningful distribution
to the holders of Allowed Claims. Further, the Debtor believes, and
will demonstrate to the Court, that the Debtor's creditors will
receive not less than the amount that they would receive in a
liquidation under Chapter 7 of the Bankruptcy Code.
Class 12 consists of the Allowed Unsecured Claims of Broad Street
against the Debtor based on the Broad Street Note. Broad Street
filed Proof of Claim No. 14 in the amount of $19,359,614.06 and
provided a copy of a Broad Street Note showing an effective date of
September 1, 2021 and a limit of $25,000,000. Proof of Claim No. 14
states that the Broad Street Note is secured by Debtor's cash,
instruments and other property, proceeds, receivables, and all
other assets, minus new home build deposits in escrow.
The Class 12 Claim against the Debtor shall be allowed as an
Unsecured Claim in the amount of $19,359,614.06 (the "Allowed Class
12 Amount"). Broad Street's UCC-1 filing shall be terminated. No
payments will be made on account of the Class 12 Claim until such
time as AG6 has received at least $9,104,363 in payments on account
of the AG6 Claims.
Once AG6 has received at least $9,104,363 in payments on account of
the AG6 Claims, the Allowed Class 12 Claim Amount shall be paid as
follows: (a) a lump sum payment of $5,497,754 on January 1, 2028;
and (b) beginning on April 1, 2029, and continuing thereafter on
the first calendar date of every calendar quarter until the Allowed
Class 12 Claim Amount is paid in full (each such first calendar
quarter date a "Payment Date"), lump sum payments of all net cash
on hand (such cash, including all bank and financial account
balances of the Debtor, net of only uncleared payments, shall be
referred to herein as "Cash on Hand") in excess of $1,000,000
(together, such quarterly payments referred to herein as the
"Quarterly Payments"). This Class will receive a distribution of
100% of their allowed claims.
For example, and not by way of limitation: (x) if the Cash on Hand
was $2,500,000 at the end of the last business day before April 1,
2029, the Debtor would pay $1,500,000 on April 1, 2029, to the
holder of the Class 12 Claim, (y) thereafter, if Cash on Hand was
$3,500,000 at the end of the last business day before July 1, 2029,
the Debtor would pay $2,500,000 on July 1, 2029, to the holder of
the Class 12 Claim, and (z) a similar procedure would occur on the
first calendar date of such subsequent calendar quarter until the
Allowed Class 12 Claim Amount was paid in full.
Class 16 consists of the Allowed Claims of the general unsecured
creditors, other than AG6 and Broad Street. The Debtor estimates
the aggregate amount of Class 16 General Unsecured Claims totals
approximately $90,801.13. The Debtor's review reflects that these
claims are largely comprised of ongoing business counterparties of
the Debtor.
Except to the extent that the holder of an Allowed General
Unsecured Claim has been paid before the Effective Date, or agrees
to a different treatment, each holder of an Allowed General
Unsecured Claim against the Debtor shall be paid in full within 30
days following the Effective Date. These payments shall be in full
satisfaction, settlement, release, and extinguishment of their
respective Allowed Claims. This Class will receive a distribution
of 100% of their allowed claims.
Funds to be used to make the payments required on the Effective
Date under the Plan shall derive from the Debtor's cash on hand and
the operation of the Reorganized Debtor's business in the ordinary
course prior to the Effective Date.
A full-text copy of the Disclosure Statement dated March 3, 2025 is
available at https://urlcurt.com/u?l=jtbXwA from PacerMonitor.com
at no charge.
Co-Counsel to the Debtor:
Jeffrey Bast, Esq.
Hunter J. Grasso, Esq.
BAST AMRON LLP
One Southeast Third Avenue, Suite 1400
Miami, FL 33131
Tel: (305) 379-7904
Fax: (305) 379-7905
Email: jbast@bastamron.com
hgrasso@bastamron.com
Co-Counsel to the Debtor:
Michael M. Beal, Esq.
Adam J. Floyd, Esq.
Kathryn A. Waites, Esq.
BEAL, LLC
1301 Gervais Street, Suite 1040
Columbia, SC 29201
Tel: (803) 728-0803
Email: mbeal@bealLLC.com
Email: afloyd@bealLLC.com
Email: kwaites@bealLLC.com
About Durham Homes USA, LLC
Durham Homes USA, LLC, operates in the residential building
construction industry.
Durham Homes USA filed its voluntary petition for Chapter 11
protection (Bankr. S.D. Fla. Case No. 24-16133) on June 20, 2024.
In the petition signed by Johnny Martin Childress, manager, the
Debtor disclosed up to $50 million in both assets and liabilities.
Judge Mindy A. Mora oversees the case.
Aaron A. Wernick, Esq., at Wernick Law, PLLC, serves as the
Debtor's legal counsel.
EAGLE ADVANTAGE: S&P Lowers ICR to 'BB' on Falling Enrollment
-------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' issuer credit rating (ICR) on
Village Technical Schools (VTS), Texas.
At the same time, S&P lowered its underlying rating on the Newark
Education Finance Corp.'s series 2014 and 2015 revenue debt, issued
for Eagle Advantage Schools (Advantage Academy), a Village Tech
affiliate, to 'BB' from 'BB+'. The outlook on all ratings is
stable.
"The downgrade reflects our view of Advantage Academy's overall
credit profile as a member of the Village Tech network. Advantage
Academy has experienced substantial enrollment declines across
several campuses and generated a full-accrual deficit in fiscal
years 2023 and 2024, which led to a likely technical covenant
violation on its outstanding bonds in fiscal 2024 based on reported
debt service coverage (DSC)," said S&P Global Ratings credit
analyst Ryan Miller. Nevertheless, S&P believes the cooperative
agreement between VTS and Advantage Academy will be beneficial over
the longer term for Advantage Academy as it will provide the school
with critical leadership and management support to stabilize
staffing and operations.
An ICR reflects the obligor's general creditworthiness, focusing on
its capacity and willingness to meet financial commitments when
they come due. It does not apply to any specific financial
obligation, because it does not account for an obligation's nature
and provisions, bankruptcy or liquidation, statutory preferences,
or legality and enforceability.
In August 2024, through board votes at both entities, and with
approval from the Texas Education Agency (TEA), Village Tech
entered into an interlocal governmental cooperative agreement for
shared services which grants it fiscal and operational agency over
Advantage Academy, a second-generation charter school, bringing
Advantage Academy's existing campuses under the Village Tech
umbrella. Through this shared servicing agreement, Village Tech
took on operational and management control of Advantage Academy.
However, currently, each charter remains separate, both corporately
and from a school accountability point of view. Management believes
that the cooperative agreement is in the best interest of all
students and will provide cost efficiencies to both organizations
regarding central office and operational functions, as well as the
delivery of school services. Both organizations share common
governance and financial oversight. It is S&P's understanding that
outside of the shared management fees, there is no comingling of
funds between schools, in accordance to state law, and they remain
distinct entities. However, the schools reported a consolidated
audit for fiscal 2024, with separate reconciliation schedules,
which is expected to continue. The cooperative agreement structure
is not considered a material revision to either of the schools'
separate authorization statuses from TEA or to either entity's
existing bond provisions.
Total long-term debt outstanding as of Aug. 31, 2024 was
approximately $46.2 million, consisting of all bond issuances and a
small lease obligation. At this time, there has been no change to
the bond terms, including pledged revenue or obligated entities, on
any series of debt as a result of the cooperative agreement. The
outstanding series 2017 and 2018 bonds are the general obligations
(GOs) of Village Tech, secured by available revenue and a mortgage
on the Duncanville campus. The series 2014 and 2015 bonds are the
GOs of Advantage Academy, secured by 100% of per-pupil state aid
and a first-mortgage lien on the land and facilities (including the
school buildings, a central office, and resource center).
Based on S&P's group rating methodology criteria, its rating
analysis encompasses the entire VTS organization, given the network
approach to general strategy, shared oversight, common board
structure, and consolidated financial audit reporting. The 'BB'
rating is based on its group credit profile (GCP) on Village Tech,
and S&P's view that VTS is core to the organization. Given the
obligated group's core status, the rating is equal to that on the
GCP. And given the core nature of the obligated group to VTS, all
references here after are to Village Tech at the consolidated
level, unless otherwise specified.
"The stable outlook reflects our expectations that VTS will likely
continue to meet budgeted enrollment projections while sustaining
steady lease-adjusted maximum annual DSC above 1x and liquidity
that is consistent with the rating," added Mr. Miller.
EASTSIDE DISTILLING: Amends ELOC Agreement
------------------------------------------
Eastside Distilling, Inc. (d/b/a Beeline Holdings) disclosed in a
Form 8-K Report filed with the U.S. Securities and Exchange
Commission that it entered into an Amended and Restated Common
Stock Purchase Agreement and an Amended and Restated Registration
Rights Agreement in connection with an equity line of credit
transaction with C/M Capital Master Fund LP.
The ELOC Agreement amended and restated the original ELOC Agreement
entered into on December 31, 2024 to, among other things:
(i) reduce the maximum amount under the ELOC Agreement from
$35 million to $10 million, and
(ii) extend the filing deadline for the registration statement
required under the ELOC Agreement to 30 days following the filing
of the Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 2024.
About Eastside Distilling
Headquartered in Portland, Oregon, Eastside Distilling, Inc. (d/b/a
Beeline Holdings) has been producing craft spirits in Portland,
Oregon since 2008. The Company is distinguished by its highly
decorated product lineup that includes Azunia Tequilas, Burnside
Whiskeys, Hue-Hue Coffee Rum, and Portland Potato Vodkas. All
Eastside spirits are crafted from natural ingredients for the
highest quality and taste. Eastside's Craft Canning + Printing
subsidiary is one of the Northwest's leading independent mobile
canning, co-packing, and digital can printing businesses.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's former
auditor, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company suffered a net loss from
operations and used cash in operations, which raises substantial
doubt about its ability to continue as a going concern.
Eastside Distilling incurred a net loss of $7.5 million during the
year ended December 31, 2023. As of June 30, 2024, Eastside
Distilling had $16,589,000 in total assets, $18,523,000 in total
liabilities, and $1,934,000 in total stockholders' deficit.
EASTSIDE DISTILLING: Nicholas Liuzza Jr. Appointed as New CEO
-------------------------------------------------------------
Eastside Distilling, Inc. (d/b/a Beeline Holdings) disclosed in a
Form 8-K Report filed with the U.S. Securities and Exchange
Commission that Geoffrey Gwin, Stephanie Kilkenny and Robert
Grammen resigned as directors and Mr. Gwin resigned as Chief
Executive Officer of the Company.
Concurrent with these resignations, the remaining directors
appointed Nicholas Liuzza, Jr. and Steve Romano to fill two
vacancies on the Board of Directors. There is one vacancy existing.
On March 7, 2025, the Board of Directors appointed Nicholas Liuzza,
Jr., as the Company's Chief Executive Officer following Geoffrey
Gwin's resignation from such position. Mr. Gwin has been appointed
the Chief Executive Officer of Bridgetown Spirits Corp., a
subsidiary of the Company.
* Nicholas Liuzza Jr., Director and Chief Executive Officer,
Age 59
Mr. Nicholas Liuzza, Jr. is a newly-appointed director and Chief
Executive Officer of the Company. He is also the Chief Executive
Officer of the Company's wholly-owned subsidiary, Beeline Financial
Holdings, Inc. In 2019, Mr. Liuzza co-founded Beeline Loans, Inc.,
the Company's principal operating subsidiary and a digital mortgage
lender. Previously, Mr. Liuzza served as Executive Vice President
of Real Matters, Inc. and exited in 2020 to work for Beeline Loans.
Since June 1, 2019, he has been a director of Red Cat Holdings,
Inc. [Nasdaq: RCAT]. Mr. Liuzza was appointed a director due to his
knowledge of the mortgage industry and his control of the Company.
* Stephen Romano, Director, Age 49
Mr. Stephen Romano is a newly-elected director of the Company, who
will serve on the Audit and Compensation Committees. In July 2021,
he founded CredEvolv, a fintech software platform that connects
consumer, lenders, and nonprofit credit counselors, where he
continues to serve as President. From December 13, 2021 to
September 2024, Mr. Romano served as President of Grand River
Mortgage Company, LLC (D/B/A GRMC Lending), a digital mortgage
company specializing in providing home loans to consumers. Mr.
Romano's experience in the mortgage industry led to his appointment
as a director.
About Eastside Distilling
Headquartered in Portland, Oregon, Eastside Distilling, Inc. (d/b/a
Beeline Holdings) has been producing craft spirits in Portland,
Oregon since 2008. The Company is distinguished by its highly
decorated product lineup that includes Azunia Tequilas, Burnside
Whiskeys, Hue-Hue Coffee Rum, and Portland Potato Vodkas. All
Eastside spirits are crafted from natural ingredients for the
highest quality and taste. Eastside's Craft Canning + Printing
subsidiary is one of the Northwest's leading independent mobile
canning, co-packing, and digital can printing businesses.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's former
auditor, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company suffered a net loss from
operations and used cash in operations, which raises substantial
doubt about its ability to continue as a going concern.
Eastside Distilling incurred a net loss of $7.5 million during the
year ended December 31, 2023. As of June 30, 2024, Eastside
Distilling had $16,589,000 in total assets, $18,523,000 in total
liabilities, and $1,934,000 in total stockholders' deficit.
EASTSIDE DISTILLING: Raises $230K From Series G Pref Share Offering
-------------------------------------------------------------------
Eastside Distilling, Inc. (d/b/a Beeline Holdings) disclosed in a
Form 8-K Report filed with the U.S. Securities and Exchange
Commission that from March 4 to 7, 2025, the Company raised
$230,000 from the sale of 450,980 shares of Series G Convertible
Preferred Stock and 225,490 accompanying warrants.
The offers and sales described above are part of the Company's
offering of a total of up to 13,878,040 shares of Series G and
warrants to purchase up to 6,939,020 shares of Common Stock for
total gross proceeds of up to $7,077,800. The Company intends to
use the net proceeds, after deducting offering expenses and related
costs, for working capital and general corporate purposes.
In connection with the foregoing, the Company entered into a
Securities Purchase Agreement and Registration Rights Agreement
with the investors. The terms of the Securities Purchase Agreement,
Series G, warrants, and related Registration Rights Agreement were
previously disclosed in the Current Report on Form 8-K filed on
December 3, 2024.
The Series G and accompanying warrants were sold to accredited
investors. The shares of common stock have not been or will not be
registered under the Securities Act of 1933 and are exempt from
registration pursuant to Section 4(a)(2) thereof and Rule 506(b)
promulgated thereunder.
About Eastside Distilling
Headquartered in Portland, Oregon, Eastside Distilling, Inc. (d/b/a
Beeline Holdings) has been producing craft spirits in Portland,
Oregon since 2008. The Company is distinguished by its highly
decorated product lineup that includes Azunia Tequilas, Burnside
Whiskeys, Hue-Hue Coffee Rum, and Portland Potato Vodkas. All
Eastside spirits are crafted from natural ingredients for the
highest quality and taste. Eastside's Craft Canning + Printing
subsidiary is one of the Northwest's leading independent mobile
canning, co-packing, and digital can printing businesses.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's former
auditor, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company suffered a net loss from
operations and used cash in operations, which raises substantial
doubt about its ability to continue as a going concern.
Eastside Distilling incurred a net loss of $7.5 million during the
year ended December 31, 2023. As of June 30, 2024, Eastside
Distilling had $16,589,000 in total assets, $18,523,000 in total
liabilities, and $1,934,000 in total stockholders' deficit.
EASTSIDE DISTILLING: Shareholders OK Name Change, 3 Other Proposals
-------------------------------------------------------------------
Eastside Distilling, Inc. (d/b/a Beeline Holdings) held a special
meeting of shareholders of the Company. At the special meeting, the
Company's shareholders voted to approve the following proposals
which were contained in a Proxy Statement filed with the Securities
and Exchange Commission on February 5, 2025:
1. Merger Share Issuance Proposal - a proposal to approve the
conversion, exercise and voting rights and issuances of shares of
common stock underlying convertible securities in connection with
and following the merger with Beeline Financial Holdings, Inc.
which closed on October 7, 2024, which Merger is described in the
Proxy Statement. In the Merger, the Company issued former Beeline
shareholders Series F-1 and Series F Convertible Preferred Stock
convertible into a minimum of 69,603,337 shares of common stock
issued as a part of the Merger. In addition, in this Proposal the
Company asked its shareholders to approve the issuance of
16,863,602 shares of common stock issuable upon conversion of
Series G stock and exercise of warrants issued or issuable
primarily in financing transactions after the Merger closing, for
an estimated total of 90,632,880 shares, all in accordance with the
rules of The Nasdaq Stock Market, LLC, as such securities are
described in the Proxy Statement.
2. Equity Line of Credit Proposal - a proposal to approve the
Equity Line of Credit, or ELOC, transaction pursuant to which the
Company will issue and sell up to $20 million of common stock to
the purchaser or up to 39,215,686 shares of common stock which
assumes the sale of common stock at $0.51 per share.
3. Name Change Proposal - a proposal to approve an amendment to the
Company's Articles of Incorporation to change the name of the
Company to "Beeline Holdings, Inc.".
4. Auditor Ratification Proposal - a proposal to ratify the
selection of Salberg & Company, P.A. to serve as the Company's
independent registered public accounting firm for the fiscal year
ended December 31, 2024.
Another agenda item at the meeting was a proposal to approve an
adjournment of the Special Meeting, if necessary, to solicit
additional proxies in favor of the foregoing proposals, however as
the other Proposals were each approved, the Adjournment Proposal
was not required and was moot.
As there were sufficient votes to approve proposals 1 through 4,
the fifth proposal relating to an adjournment of the special
meeting was not voted upon.
On March 7, 2025, following shareholder approval of the Merger,
holders of the Company's Series F Convertible Preferred Stock,
Series F-1 Convertible Preferred Stock, and Series G Convertible
Preferred Stock converted many of such preferred shares (totaling
55,959,501 shares of preferred stock) into a total of 55,959,501
shares of common stock. As a result of these conversions, there are
now 60,780,152 shares of common stock issued and outstanding, and
Nicholas Liuzza, Jr, the new Chief Executive Officer of the
Company, beneficially owns a total of 27,188,888 shares of common
stock or 39.1% of the outstanding common stock including shares
issuable within 60 days under derivative securities.
About Eastside Distilling
Headquartered in Portland, Oregon, Eastside Distilling, Inc. (d/b/a
Beeline Holdings) has been producing craft spirits in Portland,
Oregon since 2008. The Company is distinguished by its highly
decorated product lineup that includes Azunia Tequilas, Burnside
Whiskeys, Hue-Hue Coffee Rum, and Portland Potato Vodkas. All
Eastside spirits are crafted from natural ingredients for the
highest quality and taste. Eastside's Craft Canning + Printing
subsidiary is one of the Northwest's leading independent mobile
canning, co-packing, and digital can printing businesses.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's former
auditor, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company suffered a net loss from
operations and used cash in operations, which raises substantial
doubt about its ability to continue as a going concern.
Eastside Distilling incurred a net loss of $7.5 million during the
year ended December 31, 2023. As of June 30, 2024, Eastside
Distilling had $16,589,000 in total assets, $18,523,000 in total
liabilities, and $1,934,000 in total stockholders' deficit.
ELECTRONICS FOR IMAGING: S&P Affirms 'CCC+' ICR, Outlook Negative
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'CCC+' issuer credit rating on
digital imaging solutions provider Electronics for Imaging Inc.
(EFI). The outlook remains negative.
At the same time, S&P affirmed its 'CCC+' issue-level rating on the
company's first-lien debt.
The negative outlook reflects S&P's view that despite improved
liquidity due to proceeds from the Fiery sale, it expects S&P
Global Ratings-adjusted leverage of about 10x and free cash flow to
be breakeven in fiscal 2025. The negative outlook also captures the
risk that the ongoing macro weakness impacting EFI's inkjet
business continues into 2025.
The sale of the Fiery business has improved EFI's liquidity but
financial metrics are still stretched. EFI sold its Fiery business
to Seiko Epson Corp. for $591 million and used a portion of the
proceeds to repay $341 million of its first-lien term loan, repay
the $20 million tack on term loan as well as about $39 million
outstanding on the revolver (maturing April 2025). Additionally,
the company used about $110 million of the Fiery sale proceeds as a
distribution to sponsors to cover sponsor tax liability. Following
the announced sale of the Fiery business, the company has also
amended the maturity of the existing term loan by two years to July
2028 to ensure sufficient time to execute the remaining elements of
the investment thesis. While the company made significant
reductions to its outstanding debt, EFI is now a smaller and less
profitable business. S&P said, "Following the sale, we expect EFI's
revenues to drop to two-thirds of its previous scale and S&P Global
Ratings-adjusted EBITDA to about one-third of its previous scale.
We expect S&P Global Ratings-adjusted EBITDA margins to fall to
about 7% in fiscal 2025 due to the lower profitability of the
remaining industrial inkjet business as well as due to negative
operating leverage."
The negative outlook captures the risk that ongoing macroeconomic
challenges may continue to exert pressure on financial performance
during fiscal 2025. The company reported a 5% decline in
consolidated revenue for the third quarter of 2024, largely
attributable to delays in customer decision-making, which have
adversely impacted inkjet volumes. The industrial inkjet segment
was particularly affected, with a 7% year-over-year revenue
decrease driven by a 19% reduction in equipment sales with
continued customer delays impacting the corrugated business as well
as ongoing macro weakness in the textiles business. Although EBITDA
has improved during the same period, supported by effective cost
containment and improved gross margins, the overall revenue decline
raises uncertainty about sustainable growth. While management has
strong conviction in the outlook for the remaining industrial
inkjet business, the negative outlook captures the risk that macro
headwinds continue into 2025.
EFI is going through strategic transition, but the company projects
mid-single digit revenue growth longer term once the transition is
complete. EFI is currently undergoing a business transition,
recently announcing a shift to combine its packaging and display
graphics segments go-to-market strategies to capitalize on
opportunities in both sectors. Following the sale of Fiery, its
ink, parts, and services business now accounts for over 60% of
total revenue and more than 85% of its gross profit, offering some
baseline stability. EFI is also actively pursuing various strategic
initiatives to drive growth and operational efficiency, such as
expanding its high-speed single-pass product line and strengthening
partnerships in display graphics. The company expects the business
model transition to generate revenue growth in the mid-single digit
percent longer term. However, in S&P's view, the success of these
efforts remains uncertain, particularly given the challenging
macroeconomic environment the company faces.
S&P said, "The negative outlook reflects our view that despite
improved liquidity due to proceeds from the Fiery sale, we expect
S&P Global Ratings-adjusted leverage of about 10x and free cash
flow to be breakeven in fiscal 2025. The negative outlook also
captures the risk that the ongoing macro weakness affecting EFI's
inkjet business continues into 2025.
"We could lower our rating on EFI if the inkjet business struggles
over the next 12 months, faces revenue declines, free cash flow
continues to be negative, and we see an elevated risk of a
distressed transaction over the near term.
"We could take a positive rating action if EFI can generate revenue
growth and improve profitability such that it generates positive
free operating cash flow after debt amortization payments without
contributions from working capital monetization."
ELEGANT TENTS: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
Elegant Tents and Catering, Inc. received interim approval from the
U.S. Bankruptcy Court for the Western District of Pennsylvania to
use cash collateral.
The interim order authorized the company to use cash collateral to
pay ongoing business expenses, subject to a replacement lien on all
additional revenues, income, or other assets obtained by the
company.
The Debtor acknowledges that some of its creditors have liens on
its assets, including Lifetime Funding, InFirst Bank, and various
tax agencies including the Internal Revenue Service, the
Commonwealth of Pennsylvania Department of Revenue and the
Commonwealth of Pennsylvania Department of Labor and Industry.
As protection to these creditors, the Debtor was ordered to pay:
(i) $1,000 per month to Lifetime Funding;
(ii) $1,775 per month to InFirst Bank;
(iii) $667 in March, $1,334 in April, $2,001 in May, and $1,334
for each month
thereafter, to the Commonwealth of Pennsylvania Department of
Revenue;
(iv) $111 in March, $222 in April, $333 in May, and $222 for
each month thereafter,
to the IRS;
(v) $222 in March, $444 in April, $666 in May, and $444 for
each month thereafter,
to the Commonwealth of Pennsylvania Department of Labor and
Industry.
Unless extended by further order, the interim order will expire at
the conclusion of the hearing scheduled for April 25.
Lifetime Funding has a lien from a "Future Receivables and Purchase
Agreement" and a balance of around $30,000 owed while InFirst Bank
holds a lien on the Debtor's business property with a debt of about
$115,000.
Meanwhile, the IRS, Pennsylvania Department of Revenue, and
Pennsylvania Department of Labor have filed tax liens against the
Debtor for a total of approximately $454,000.
About Elegant Tents and Catering Inc.
Elegant Tents and Catering Inc. is a family-owned business based in
Youngwood, PA, offering event rental services and catering for
various occasions, including weddings, birthdays, and corporate
events. The Company provides tent rentals, linens, furniture, and
other event equipment, along with a variety of catering menus, made
from family recipes and tailored to meet dietary needs. The Company
serves the Tri-State area and prides itself on delivering
personalized service.
Elegant Tents and Catering Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No.
25-20594) on March 7, 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 John C. Melaragno handles the case.
The Debtor is represented by Justin P. Schantz, Esq., at LAW CARE
David A. Colecchia and Associates.
ENERGYSOLUTIONS LLC: Moody's Alters Outlook on 'B2' CFR to Stable
-----------------------------------------------------------------
Moody's Ratings affirmed the ratings of EnergySolutions, LLC
(EnergySolutions), including the B2 corporate family rating, B2-PD
probability of default rating and B2 rating on the company's senior
secured bank credit facility. Moody's also changed the outlook to
stable from positive.
The outlook change to stable reflects increased governance risk
stemming from a planned dividend recapitalization that signals a
more aggressive financial policy. The dividend of approximately
$190 million will be funded by a $150 million add-on term loan and
$40 million in cash. The transaction increases adjusted
debt-to-EBITDA to about 4.6x on a pro forma basis, up from Moody's
previous estimate of 3.7x at year-end 2024.
The stable outlook also reflects Moody's expectations for continued
revenue and EBITDA growth despite cost pressures and a likely
slowdown in nuclear plant retirements. Moody's expects the company
to benefit from a ramp up of activity in its existing
decommissioning (D&D) projects and incremental waste volumes. These
higher margin businesses will help offset the more modest margins
of other growing services (e.g. construction and repair). The
earnings growth will help lower adjusted debt-to-EBITDA, which
Moody's expects to approach 4x over the next year. Moody's also
expects the company to maintain good liquidity, including positive
free cash flow, supported by its sizable overlapping D&D projects
and new contract wins.
The affirmation reflects Moody's expectations that the unique
high-value assets and technical expertise of EnergySolutions will
continue to support its well-established position in the nuclear
waste markets.
RATINGS RATIONALE
The B2 CFR reflects EnergySolutions' leading position in the
nuclear waste disposal industry, unique high-value assets and
technical expertise in handling and servicing hazardous waste
materials. These factors make the company well-positioned to
capture at least a portion of revenue from future nuclear plant
project opportunities and at-risk reactors. Moody's note the
company has certain D&D projects that will wind down over the next
few years. At a minimum, incremental Class A radioactive waste will
likely be directed to the company's Clive, Utah landfill, though
the timing and progress of these projects are difficult to predict.
Positively, demand for services is driven by the compliance needs
of customers to meet increasingly stringent environmental
regulations and is contractual in nature.
Offsetting these strengths is the volatility of project work and
free cash flow, and the company's modest revenue scale due to
reliance on a low-volume, specialty waste industry. With the D&D
market facing a slowdown amid growing investments in nuclear power,
the company has increased its focus on government contract work and
international materials waste management. The company is also
growing its Nuclear Services segment, including construction and
maintenance services. D&D projects are susceptible to delays or
deferrals that increase financial uncertainty. They also expose the
company to considerable performance risk, some of which is not
under its control, because of the large size and high visibility of
nuclear D&D projects. This places importance on maintaining good
liquidity.
Moody's expects EnergySolutions to maintain good liquidity over the
next 12-18 months. This is supported by the cash balance, Moody's
expectations for free cash flow of about $80 million supported by
the current D&D backlog and ample availability on the company's
$150 million revolving credit facility. However, free cash flow
will fluctuate with the timing of project receipts and working
capital needs. The $150 million revolving facility expires in
September 2028 and Moody's do not expect the company to rely on the
revolver. There are no near term debt maturities other than
mandatory term loan amortization of about $8 million annually, pro
forma for the add-on term loan.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded with improving margins through steady
activity from D&D project overlaps and increased contract wins on
upcoming projects. Debt-to-EBITDA remaining below 4x and
EBITDA-to-interest approaching 3x could also support a rating
upgrade. Greater scale and stability of cash flow sufficient to
offset negative impacts of project volatility, supported by
multiple D&D projects occurring simultaneously and a sustained
increase in operational waste volumes could also drive an upgrade.
Evidence of a more conservative financial policy would also provide
support for an upgrade.
The ratings could be downgraded due to deteriorating liquidity,
including weakening free cash flow and/or diminishing revolver
availability. The ratings could also be downgraded if Moody's
expects deteriorating operating performance, including sustained
erosion of the EBITDA margin and debt-to-EBITDA above 5x. Headline
risk, including an extended disruption or a major accident related
to radioactive material handling could also warrant a downgrade.
Further, additional debt funded dividends or acquisitions that
weaken the metrics or liquidity could also result in a rating
downgrade.
The principal methodology used in these ratings was Environmental
Services and Waste Management published in August 2024.
EnergySolutions, LLC provides a broad range of services to the
nuclear power industry, including transportation, processing and
disposal of low-level radioactive waste (LLRW) as well as clean-up
and repair of nuclear sites. With two of the four privately owned
or operated disposal sites in the US for LLRW, the company handles
90% of all domestic Class A LLRW disposal volume - the US
Government is the only authorized agent for processing and
disposing of high-level radioactive waste. Revenue was
approximately $693 million for the twelve months ended September
30, 2024.
EnergySolutions, LLC is owned and controlled by private equity firm
Triartisan Capital Partners, a previous minority shareholder, since
May 2022.
ENGLOBAL CORP: Gets Court Okay for Ch. 11 Asset Auction in April
----------------------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that on March
24, 2025, a Texas bankruptcy judge approved ENGlobal Corp.'s plan
to pursue a sale within a month, emphasizing that a quick
transaction was the best course for the bankrupt engineering firm.
About ENGlobal Corp.
Englobal Corp. and affiliates provide innovative project solutions
with expertise in engineering, automation, and government services,
supported by a workforce of over 100 employees and contractors in
Houston and Tulsa. Their engineering group offers services such as
engineering, procurement, construction management, and fabricated
products for industries like refineries, petrochemicals, renewable
energy, and transportation. The automation group designs and
integrates modular systems, including control systems and data
monitoring, for both new and existing facilities. Additionally, the
government services group specializes in process control system
design, integration, and maintenance for U.S. government agencies
and commercial clients.
Englobal Corp. and affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case. No. 25-90083) on
March 5, 2025. In its petition, the Debtor reports estimated assets
and liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Alfredo R. Perez presides over the
case.
Christopher Adams, Esq., Ryan A. O'Connor, Esq., John Thomas
Oldham, Esq., and Madeline Schmidt, Esq., at OKIN ADAMS BARTLETT
CURRY LLP, represent the Debtor as counsel.
ENVISION CIVIL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Envision Civil LLC
6254 NC 150 East
Denver, NC 28037
Business Description: Envision Civil LLC is a contractor
specializing in site development services
for a wide range of heavy civil and
development projects. With offices in
Charlotte and Raleigh, the Company offers a
comprehensive solution for project owners,
managing every aspect from initial site
preparation to heavy site work, including
grading, underground utilities, drainage,
and the construction of roads and parking
lots. Envision also boasts a fleet of
specialized equipment and a team of
experienced professionals, ensuring reliable
execution of both commercial and residential
projects.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
Western District of North Carolina
Case No.: 25-40067
Judge: Hon. Ashley Austin Edwards
Debtor's Counsel: John C. Woodman, Esq.
ESSEX RICHARDS PA
1701 South Boulevard
Charlotte, NC 28203
Tel: (704) 377-4300
Fax: (704) 372-1357
E-mail: jwoodman@essexrichards.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Tiffany N. England as 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/O2QN3NQ/Envision_Civil_LLC__ncwbke-25-40067__0001.0.pdf?mcid=tGE4TAMA
EZCORP INC: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issuer credit rating to
EZCorp Inc. and its 'BB-' issue rating with a '4' recovery rating
to the company's proposed $300 million senior unsecured notes due
2032.
The stable outlook indicates S&P's expectations that over the next
12 months EZCorp will continue to increase its store count
organically and through acquisitions while maintaining strong
operating margins, adequate liquidity, and S&P Global
Ratings-adjusted debt to EBITDA of 2.0x-3.0x.
EZCorp Inc. a pawn store owner and operator in the U.S. and Latin
America, plans to raise $300 million of senior unsecured notes to
repay existing $103 million of convertible notes with the balance
used for general corporate purposes.
S&P's rating on Austin-Texas based EZCORP reflects its established
market position as pawn store owner and operator. EZCorp is the
second-largest operator of pawn shops and provider of pawn services
in the U.S. (behind FirstCash Holdings Inc.). It has 542 branches
in the U.S. and 741 branches across Latin America as of Dec. 31,
2024. The company was founded in 1989 and taken public in 1991. It
has grown both organically and through store acquisitions while
reporting generally stable earnings. During fiscal year 2023 and
2024 (the company's fiscal year end is Sept. 30) EZCORP's adjusted
EBITDA margin reported was 12.5% and 13.1%, respectively.
EZCORP's revenues grew about 18% and 11% in fiscal year 2023 and
2024, respectively, benefiting from conditions that support pawn
demand, including elevated inflation and high interest rates. S&P
expects revenues to continue to between 5-10% in 2025 driven by
same store sales growth and new store openings.
EZCorp has two sources of revenue--pawn charges and merchandise
sales. Pawn service charges are 38% of gross revenues and 64% of
the gross profit for the fiscal year ended Sept. 30, 2024. The
company provides small, short-term nonrecourse loans, which are
backed by collateral such as jewellery, electronics, home and
office goods, musical gear and sports equipment. Pawn loan monthly
charges vary between 13%-25%, which depends on state regulations.
Average loan sizes vary by geography but are about $170-$200 on
average in the U.S. with 30–90-day terms. This compares to
$65-$85 in Mexico on 30-day terms.
Merchandise sales are 57% of gross revenues and 34% of gross profit
for the fiscal year ended Sept. 30, 2024. EZCorp's merchandise
includes direct sales from consumers as well as merchandise that
has been forfeited from pawn loans. Unlike most lenders, EZCorp
doesn't attempt to recover the loan. We believe EZCORP efficiently
manages its merchandise as about 1.5% of the total is aged 360 days
or more.
In S&P's view, EZCORP has maintained conservative lending
practices. Despite the generally weak credit profiles of customers
taking out pawn loans, EZCORP has a strong track record of managing
the related risks through effective business policies, processes,
and operational management. The company maintains conservative
Loan-to-value (LTV) ratios on its loans, while factoring in its
assessment of the customer and the merchandise. EZCORP's pricing
model is routinely updated to reflect expected market rates. The
price expectations of the merchandise are factored into the LTV
while disbursing the loan.
The price expectations of the merchandise are factored into the LTV
ratio while giving out the loan.
While the duration and yields for pawn loans may appear similar in
structure to payday loans, there are significant differences, such
as limited loan renewals and the absence of collection practices.
Collection practices don't apply to pawn lending since the lender
doesn't rely on future payments from the customer to recover or
minimize loan losses after a delinquency. Pawn loans also don't
involve credit checks or credit reporting.
EZCORP is susceptible to adverse changes to state and local
ordinances. Approximately 65% of EZCORP's U.S. stores are in
Texas and Florida. S&P said, "We think state regulatory risks are
possible in the future given the cultural stigma against pawn
lending, particularly in the U.S. Any specific elements of
regulatory risk, such as limits on pricing and service offerings
would incrementally constrain the profitability of lending
activities in the respective jurisdictions. We view positively that
EZCORP has proactively worked with regulators to promote standards
for business conduct among pawn lenders."
S&P said, "We expect EZCorp, pro forma for the proposed issuance,
to operate with S&P Global Ratings-adjusted debt to EBITDA of 2x-3x
and EBITDA interest coverage of 6x-8x. EZCORP has established a
track record of consistent profitability, notwithstanding some
variability during the pandemic. To finance further growth, EZCORP
plans to access the capital markets by issuing the proposed $300
million of senior unsecured notes. The company intends to use the
proceeds to pay down its existing 2025 convertible notes of $103
million, using use the remainder of the cash primarily for
acquisitions, de novo store growth in Latin America, and general
corporate purposes.
"In our view, EZorp's funding and liquidity risks are well managed.
The company has liquid assets on its balance sheet, including $174
million of unrestricted cash as of Dec. 31, 2024, short-term loan
receivables, and an overcollateralized inventory base that
generates strong cash flow. While the company does not have a
revolving facility, its capital expenditure needs are low at about
4% of annual revenues. The company does not pay a dividend but may
buyback shares.
"We expect the company to raise its cash balance by about $200
million post its proposed unsecured notes issuance. After the
company raises the senior unsecured notes and repays the
convertible notes that are coming due, its only other debt maturity
will include $224 million of convertible notes due in 2029.
"We view management and governance as moderately negative because
100% of voting rights are with one person, Phillip E. Cohen. While
the company's board has five independent members out of seven (Mr.
Cohen is the chairman), we believe Mr. Cohen possesses veto rights
for all board decisions because he owns 100% of the voting rights.
However, we recognize the company's prudent financial policy and
risk management practices, as well as the company's strong track
record under Mr. Cohen's leadership.
"The stable outlook reflects our expectations that EZCorp will
maintain strong operating margins, adequate liquidity, and S&P
Global Ratings-adjusted debt to EBITDA of 2.0x-3.0x over the next
12 months. We also expect the company will continue growing its
store count organically and through acquisitions.
"We could lower the rating over the next 12 months if large
debt-funded initiatives, weaker-than-expected performance, or
adverse regulatory changes weaken the company's credit measures.
Specifically, we could lower the rating if we expect debt to EBITDA
to remain above 3.0x due to lower-than-expected earnings or an
increase in debt-funded spending.
"We could raise the rating over the next 12 months if the company
improves its business and geographic diversity while expanding
EBITDA and maintaining its margins. We could raise the rating on
EZCorp if leverage declines and remains below 2.0x, as measured by
debt to adjusted EBITDA."
FORTREA HOLDINGS: Fitch Lowers LongTerm IDR to 'B', Outlook Neg.
----------------------------------------------------------------
Fitch Ratings has downgraded Fortrea Holdings, Inc.'s Long-Term
Issuer Default Rating (IDR) to 'B' from 'BB-' and senior secured
ratings to 'B+' with a Recovery Rating of 'RR3' from 'BB+'/'RR2'.
The Rating Outlook is Negative.
The two-notch downgrade reflects Fortrea's weakening credit profile
and near-term growth prospects, which have been more significantly
impacted than anticipated. Despite debt reduction efforts in 2024,
Fitch forecasts that EBITDA leverage will remain in the 6.0x to
8.0x range in the near term.
The Negative Outlook reflects Fitch's view that limited or delayed
growth, resulting from ongoing volatilities in the
biopharmaceutical end markets or unsuccessful business strategies,
could result in a further downgrade.
Key Rating Drivers
Growth to Slow: Fitch expects Fortrea's revenues to decline by 7.3%
in 2025 and assumes revenue growth will return in 2026 in the 3.0%
to 4.0% range. Fitch's revenue assumptions consider a reduction of
100 basis points (bps) in backlog conversion rates due to the
revenue mix of mature and longer-duration projects, and a net
book-to-bill ratio of 1.15x to 1.20x. The uncertain operating
environment and Fortrea's lack of consistent revenue growth have
lowered Fitch's expectations that the company can achieve prior
revenue expectation of $3.2 billion by 2027.
Fitch believes the CRO industry can generate mid-single-digit
growth in a stable macroeconomic environment and expects Fortrea to
grow at least in line with the market over the long term. Fitch
anticipates Fortrea will have sufficient liquidity to navigate
near-term challenges. However, strategic failures could compromise
its ability to compete with larger, better-capitalized peers and
affect deleveraging efforts. Consistent revenue growth is crucial
for stabilizing and expanding profit margins.
Margins Under Pressure: Fitch expects EBITDA margins to decline by
30 bps in 2025 from 7.4% in 2024 due to higher operating costs as a
standalone company and a lower contribution from higher-margin
post-spin awards. Over the forecast period, Fitch assumes margins
will gradually expand but likely sustain in the high-single-digit
range. Margin contraction in 2025 reflects benefits from Fortrea
exiting all transition service agreements with LabCorp and net
savings of $40 million to $50 million from restructuring
activities, partially offset by Fitch's expectation of gross margin
contraction by 70 bps.
Thereafter, Fitch assumes selling, general and administrative
expenses will remain relatively fixed as Fortrea looks for
opportunities to further optimize its cost structure. Gross margins
are assumed to expand due to a favorable revenue mix and employee
productivity, partially offset by increases in incentive
compensation. Combined, Fitch assumes that EBITDA margins will
expand by 50 to 100 bps per annum after 2025.
Deteriorating Credit Profile: Fitch expects EBITDA leverage to rise
to 8.0x in 2025 and sustain in the 6.0x to 7.0x range in 2026 and
2027. While Fortrea repaid $483 million of outstanding debt in
2024, the company fully drew on its receivables (A/R)
securitization facility, which Fitch treats as senior debt in the
total debt calculation, to provide liquidity. Deleveraging will
rely on Fortrea's ability to stabilize its profit margins while
prioritizing organic investments to support growth opportunities.
Prioritizing Organic Investments: Capital allocation priorities
remain unchanged, with Fortrea shifting its focus to targeted
investments to drive organic growth. Fitch assumes capex will be
1.0% of revenue in 2025 and rise to 1.5% thereafter, excluding
discretionary capex. Fitch expects Fortrea to use a combination of
cash on hand and the milestone payments from the sale of its
Enabling Services business to redeem $76 million of the 2030 senior
secured notes in 2025. Excess cash above operational requirements,
if any, will be allocated to debt repayment.
Continued Volatility: While the CRO industry continues to show
resilience amid an unfavorable macro environment, Fitch expects
end-market demand will remain volatile and cancellations across the
industry will remain elevated in 2025. Biopharmaceutical companies
will continue to reprioritize pipeline assets and remain cautious
with spending to navigate uncertainties stemming from government
policies, including but not limited to reduced government agency
resources and slower pharmaceutical product and medical device
approvals.
Peer Analysis
The 'B' IDR considers Fortrea's competitive position as a global
CRO that offers a broad range of clinical development solutions to
biopharmaceutical and medical device customers. However, these
strengths are currently offset by its elevated credit risks and
weakening cash flow profile as the company continues to face
challenges in stabilizing its business following the spin-off from
LabCorp.
The majority of Fortrea's CRO peers benefit from larger scale,
higher profitability levels, and lower leverage. Charles River
Laboratories International, Inc. (BBB-/Stable) participates in the
pre-clinical CRO segment (as opposed to Fortrea in the clinical CRO
market) and maintains a competitive position with a track record of
leverage maintenance. Star Intermediate Holdings, Inc.
(B+/Negative) is a direct competitor that is larger in scale and
provides broader service offerings.
Key Assumptions
- Revenue of $2.5 billion in 2025 and annual revenue growth of low-
to mid-single-digit range thereafter;
- EBITDA margins of 7.0% to 8.0% in 2025 and 2026;
- Effective interest rates of 6.5% to 7.5% over the forecast
period, moving with SOFR;
- Working capital will be a use of cash, averaging about 1.0% of
revenue per annum;
- Capex of $25 million in 2025 and $50 million to $60 million per
annum thereafter, inclusive of discretionary capex;
- Negative free cash flow (FCF) in 2025 and 2026 that will turn
positive to 1.5% of revenue by 2027;
- Redemption of $76 million of the 2030 senior secured notes in
2025;
- The A/R facility and the revolving facility and term loan A are
refinanced at their maturities;
- No allocation of discretionary FCF toward acquisitions or
shareholder-friendly activities.
Recovery Analysis
The 'B+'/'RR3' ratings for the senior secured debt instruments
reflect Fitch's assumption that Fortrea would be reorganized in
bankruptcy as a going concern (GC) rather than being liquidated, to
maximize the value distributable to claims.
Fitch estimates an enterprise value (EV) on a GC basis of
approximately $850 million, after deducting 10% for administrative
claims assumed to accrue from restructuring. The estimated EV
reflects an estimated GC EBITDA of approximately $195 million,
reflecting Fitch's view that GC EBITDA at this level is likely to
trigger a default or restructuring amid significant refinancing
risk from negative cash flow generation and high leverage.
The GC EBITDA is based on the following scenarios: a volatile
operating environment reduces research and development spending and
delays customer spending decisions; an unfavorable revenue mix
results in slower backlog conversion rates; and operating
inefficiencies sustain profit margins at compressed levels. Fitch
assumes a moderate level of improvement in GC EBITDA from
corrective measures in a restructuring which results in the GC
EBITDA approximating current levels.
The EV also reflects Fitch's use of a 6.5x EV/EBITDA multiple. This
reflects the following: high barriers to entry for becoming a
large-scale CRO that can serve customer demand on a global scale;
generally stable biopharmaceutical research and development
spending through economic cycles; Fortrea's competitive position
among global CROs; and its weak profit margins compared with other
CROs in Fitch's coverage universe. The 6.5x multiple compares to
the median 6.3x multiple observed in Fitch's case studies of
previous bankruptcies in the healthcare sector.
In estimating claims, Fitch assumes that the A/R facility, given
its importance to working capital funding, would be replaced by an
equivalent super-seniority facility in bankruptcy and would have
priority over the existing senior secured debt. Fitch also assumes
that Fortrea would draw the full amount available under the $450
million revolving facility and includes that amount of debt in the
claims waterfall. The waterfall analysis further reflects senior
secured claims of approximately $1.1 billion in term loans and
notes.
Fitch assumes that the non-guarantor subsidiaries do not have
outstanding debt and the value generated by those subsidiaries will
be fully available to creditors in bankruptcy, resulting in the
senior secured debt recovering within the 'RR3' range, which
generates a one-notch uplift from Fortrea's 'B' IDR.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's expectation that EBITDA leverage will be sustained above
7.0x, driven by weaker or delayed growth and margin expansion;
- Fitch's expectation that (CFO-capex)/debt will be maintained
below 1.5% and EBITDA interest coverage below 2.0x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch's expectation that EBITDA leverage will be sustained below
6.0x, driven by stronger growth recovery and meaningful margin
expansion;
- Fitch's expectation that (CFO-capex)/debt will be maintained
above 2.5% and EBITDA interest coverage above 2.5x.
Liquidity and Debt Structure
Liquidity is supported by $119 million of cash on hand and an
undrawn revolving facility of $450 million as of Dec. 31, 2024.
Fitch forecasts negative CFO in 2025 but expects CFO to turn
positive and gradually improve to $90 million in 2027. Over the
forecast period, Fitch expects Fortrea to have sufficient liquidity
to cover working capital requirements, capex, and organic
investments. However, adverse operating conditions will result in
reliance on the revolving facility to meet short-term liquidity
needs.
Fortrea is required to redeem $76 million of the 2030 senior
secured notes in 2025 and has term loan amortization of $5 million
in 2026 and $25 million in 2027. The company will have $300 million
of the A/R facility and approximately $390 million of the term loan
A maturing in 2027 and 2028, respectively. Over the forecast
period, Fitch assumes effective interest rates of 6.5% to 7.5%.
Issuer Profile
Fortrea Holdings, Inc. is a global CRO providing clinical
development solutions for the biopharmaceutical and medical device
industries. Its services include Phase I through IV clinical trial
management, clinical pharmacology, and consulting services across
20 therapeutic areas.
Summary of Financial Adjustments
Fitch adjusts historical and projected EBITDA to remove non-cash
and non-recurring expenses, including stock-based compensation,
disposition-related and discontinued operation expenses,
spin-off-related costs, and restructuring and other related
expenses. Fitch also includes the outstanding amount of the A/R
facility in the total debt calculation.
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
Fortrea Holdings Inc. has an ESG Relevance Score of '4' for
Management Strategy due to financial underperformance and
significant execution risk. The divergence between management
strategy and business performance raises concerns about
management's track record, which has a negative impact on the
credit profile and is relevant to the rating 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
----------- ------ -------- -----
Fortrea Holdings Inc. LT IDR B Downgrade BB-
senior secured LT B+ Downgrade RR3 BB+
FRANCHISE GROUP: Lender Dispute Triggers New Bankruptcy Lawsuit
---------------------------------------------------------------
James Nani of Bloomberg Law reports that Franchise Group Inc.'s
first-lien lenders have filed a lawsuit against the company's
second-lien lenders, claiming they violated an intercreditor
agreement by seeking a $158 million priority payout.
The suit, filed Sunday by Wilmington Trust, NA in the U.S.
Bankruptcy Court for the District of Delaware, alleges that Alter
Domus (US) LLC, the administrative agent for the second-lien
debtholders, breached the agreement by requesting an expense claim
last month based on the reduced value of its collateral.
This dispute is the latest chapter in Franchise Group's Chapter 11
proceedings, which have been marked by ongoing clashes between
lender groups.
About Franchise Group Inc.
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy's Home Furnishings and Sylvan Learning
Systems, Inc.
Franchise Group, Inc. and its affiliates filed their voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D. Del. Lead Case No. 24-12480) on Nov. 3, 2024, listing
$1,000,000,001 to $10 billion in both assets and liabilities. The
petitions were signed by David Orlofsky as chief restructuring
officer.
Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor,
LLP are serving as legal counsel, AlixPartners is serving as
financial advisor and Chief Restructuring Officer, and Ducera
Partners is serving as investment banker to the Company. Paul
Hastings LLP is serving as legal counsel and Lazard is serving as
investment banker to the first lien ad hoc group.
GLOBAL MEDICAL: Moody's Raises CFR to B2 & Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Ratings upgraded the ratings of Global Medical Response,
Inc. (GMR), including its corporate family rating to B2 from B3 and
probability of default rating to B2-PD from B3-PD. At the same
time, Moody's upgraded the instrument-level ratings on the senior
secured first lien term loan and senior secured notes due 2028 to
B2 from B3 and the senior unsecured notes due 2025 to Caa1 from
Caa2. Moody's also revised the outlook to stable from positive.
The ratings upgrade reflects Moody's expectations that GMR's
leverage will remain at or below 5.5x over the next 12 to 18
months. Moody's expects GMR's operating performance to be supported
by mid-single-digit revenue and earnings growth from a stronger net
revenue per transport and mix shift toward higher acuity services.
Additionally, Moody's expects GMR will maintain good liquidity,
underpinned by positive free cash flow.
RATINGS RATIONALE
GMR's B2 CFR reflects the company's high financial leverage.
Moody's expects the company's debt/EBITDA to remain between 5-5.5x
over the next 12 to 18 months. The rating is constrained by GMR's
exposure to weather fluctuations in the air medical transport
business, certain labor pressures, and continued uncertainty
surrounding reimbursement rates. The rating is also constrained by
headline risk, with multiple fatal aviation accidents in the past
18 months.
The rating benefits from the company's scale and leading position
as a provider of pre-hospital healthcare services, including
medical transportation, in the United States. The company also
benefits from significant diversification by geography, payor and
service lines, as well as growing predictability of revenues from
increasingly in-network commercial payor sources.
Moody's expects GMR to maintain good liquidity over the next 12 to
18 months, supported by $144 million of cash as of September 30,
2024. Moody's expects the cash balance to increase given strong
collections and proceeds from asset sales. Moody's expects that the
company's annual free cash flow will be approximately $50 to $70
million over the next 12 to 18 months and that cash flow generation
will be sufficient to cover the company's basic obligations.
Liquidity is also supported by a $700 million asset-based revolving
credit facility that is undrawn as of September 30, 2024 with $516
million of available borrowing capacity after letters of credit.
The ABL facility has a springing minimum fixed charge coverage
covenant, which Moody's do not expect the company to trigger or
violate over the next 12 to 18 months. Alternate liquidity is
limited as the majority of assets are encumbered by bank credit
facilities.
The stable outlook reflects Moody's views that GMR will continue to
grow organically and to improve earnings, while maintaining
leverage below 5.5x and good liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade the ratings if GMR demonstrates earnings
growth and margin improvement, while maintaining good liquidity.
Conservative financial policies could also support an upgrade of
the ratings. Quantitatively, debt/EBITDA maintained below 5.0x
could support an upgrade.
Moody's could downgrade the ratings if operating performance
weakens, or free cash flow deteriorates. Moody's could downgrade
the ratings if the company pursues material debt-funded shareholder
returns or aggressive M&A. Quantitatively, debt/EBITDA above 6.0x
could lead to a downgrade.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Global Medical Response, Inc. provides pre-hospital emergent
medical services and non-emergent transports through its
wholly-owned subsidiaries -- Air Medical Group Holdings LLC and AMR
Holdco, Inc. GMR has been a portfolio company of sponsor Kohlberg
Kravis Roberts & Co. (KKR) since 2015. The company generated about
$5.9 billion of revenue for the last twelve months ended September
30, 2024.
HEALTH DRIP: Case Summary & Three Unsecured Creditors
-----------------------------------------------------
Debtor: Health Drip, PLLC
d/b/a SlimdownRx
9415 N. Beach St.
Fort Worth, TX 76244
Business Description: Health Drip, doing business as SlimDownRx,
is a telehealth company dedicated to helping
individuals achieve their weight loss goals
through personalized guidance and expert
advice. The Company provides access to
medications like Tirzepatide and offers
ongoing provider support to enhance the
weight loss journey. Founded by physicians
who have experienced their own weight
management challenges, SlimDownRx focuses on
making effective weight loss solutions more
accessible to its clients.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 25-41012
Debtor's Counsel: M. Jermaine Watson, Esq.
CANTEY HANGER, LLP
600 West 6th Street, Suite 300
Forth Worth, TX 76102
Tel: 817-877-2800
Email: jwatson@canteyhanger.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Peter Brokish as chief executive
officer.
A copy of the Debtor's list of three unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/H2VGLHQ/Health_Drip_PLLC_dba_SlimdownRx__txnbke-25-41012__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/H7SDKYQ/Health_Drip_PLLC_dba_SlimdownRx__txnbke-25-41012__0001.0.pdf?mcid=tGE4TAMA
HERITAGE GROCERS: Moody's Cuts CFR to B3 & Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Ratings downgraded Heritage Grocers Group, LLC's ("Heritage
Grocers") corporate family rating to B3 from B2, its probability of
default rating to B3-PD from B2-PD and the ratings on its backed
senior secured term loan and backed senior secured revolving credit
facility to B3 from B2. The rating outlook was changed to stable
from negative.
The downgrades reflects Heritage Grocers' continued weak operating
performance, which has resulted in high leverage, weak interest
coverage and lower than expected free cash flow. Debt to EBITDA
was 5.4x and EBITA to interest was 0.8x for the LTM ended September
29, 2024, both of which are below Moody's downgrade factors.
Moody's expects Heritage Grocers to continue to face a difficult
consumer spending environment, which will constrain revenue growth,
but that disciplined expense management and better productivity
combined with continued debt repayment should result in relatively
flat leverage and coverage over the next 12 months.
RATINGS RATIONALE
Heritage Grocers' B3 corporate family rating reflects the company's
high leverage and weak coverage. Debt to EBITDA was 5.4x and EBITA
to interest was 0.8x for the LTM ended September 29, 2024. Heritage
Grocers' profitability was negatively affected by its high
promotional activities which were driven by an increasing focus by
consumers on value as they continue to face high cost essentials.
While earnings will benefit from cost reduction initiatives and a
number of strategic initiatives that management is undertaking to
improve operating performance, the benefits from these initiatives
will take at least 12-18 months to be realized. The rating also
reflects the company's small scale within the fiercely competitive
grocery retail sector and geographic concentration in the Southwest
and Chicago area, as well as the risk of aggressive financial
policies inherent with ownership by a financial sponsor.
The ratings are supported by Heritage Grocers' attractive market
niche with a focus on the Hispanic community. The company's high
perishable sales mix, which is at about 60% including dairy, makes
it less exposed to the sales volatility associated with pantry
loading when compared to other traditional grocery stores. With the
use of partners, such as DoorDash and Uber Eats, Heritage Grocers
will continue delivery from all stores and curbside pickup at its
stores in Chicago. The company also benefits from stronger
operating margins relative to many larger peers.
Another key rating support is Heritage Grocers' good liquidity, as
demonstrated by about $93 million of balance sheet cash at
September 30, 2024, and an undrawn $125 million secured revolver
expiring in August 2027. The company has no near term debt
maturities.
The stable outlook reflect Moody's expectations that Heritage
Grocers will improve profitability and strengthen credit protection
measures over time through a combination of debt repayment and
EBITDA growth while maintaining good liquidity. The stable outlook
also reflects Moody's expectations that financial policies will
remain balanced.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if operating performance improves such
that same store sales growth remains consistently positive
accompanied with margin expansion and good free cash flow. In
addition, an upgrade would require maintaining good liquidity.
Quantitatively, ratings could be upgraded should debt/EBITDA
(including Moody's adjustments) be sustained below 5.0x and
EBITA/interest be sustained above 1.5x.
The ratings could be downgraded if Heritage Grocers' operating
performance deteriorates or if the company's liquidity and free
cash flow weakens. Aggressive financial policies, including debt
funded acquisitions or shareholder distributions could also prompt
a downgrade. Quantitatively, ratings could also be downgraded
should debt/EBITDA (including Moody's adjustments) rise above 5.5x
or EBITA/interest is sustained below 1.0x.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
Headquartered in Ontario, California, Heritage Grocers Group, LLC
operate 115 grocery stores in six states in the Southwest and
Chicago area. The company is owned by Apollo and generates about
$3.1 billion in revenue.
HERTZ GLOBAL: In Agreement w/ CK Amarillo to Restrict Voting Power
------------------------------------------------------------------
Zachary Fleming of Bloomberg Law reports that CK Amarillo has
agreed to limit its voting power in Hertz, committing to vote any
shares exceeding a 45% ownership threshold in line with other
shareholders.
As of March 21, 2025, CK Amarillo holds 58.9% of Hertz's common
stock. Under the agreement:
Shares above 45% must be voted in accordance with minority
shareholders.
The restriction applies to all stockholder votes and written
consents.
CK Amarillo retains full voting rights for shares up to the 45%
threshold.
The agreement remains in place until CK Amarillo's ownership drops
below 45% and Hertz completes or ends its 2021–2022 buyback
programs.
About Hertz Corp.
Hertz Corp. and its subsidiaries -- http://www.hertz.com/--
operate a worldwide vehicle rental business under the Hertz,
Dollar, and Thrifty brands, with car rental locations in North
America, Europe, Latin America, Africa, Asia, Australia, the
Caribbean, the Middle East, and New Zealand. They also operate a
vehicle leasing and fleet management solutions business.
On May 22, 2020, The Hertz Corporation and certain of its U.S. and
Canadian subsidiaries and affiliates filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 20-11218).
Judge Mary F. Walrath oversees the cases.
The Debtors have tapped White & Case LLP as their bankruptcy
counsel, Richards, Layton & Finger, P.A., as local counsel, Moelis
& Co. as investment banker, and FTI Consulting as financial
advisor. The Debtors also retained the services of Boston
Consulting Group to assist the Debtors in the development of their
business plan. Prime Clerk LLC is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a Committee to
represent unsecured creditors in Debtors' Chapter 11 cases. The
Committee has tapped Kramer Levin Naftalis & Frankel LLP as its
bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as
Delaware counsel, UBS Securities LLC as investment banker, and
Berkeley Research Group, LLC, as financial advisor. Ernst & Young
LLP provides audit and tax services to the Committee.
* * *
Hertz Global and its subsidiaries emerged from Chapter 11
bankruptcy at the end of June 2021. Hertz won approval of a Plan of
Reorganization that unimpaired all classes of creditors (who are
legally deemed to have accepted it) and was approved by more than
97% of voting shareholders. The Plan provided for the existing
shareholders to receive more than $1 billion of value.
Recovery by shareholders of close to $8 a share was made possible
after a fierce competition among bidders for control in the
company. Initial offers from potential bidders for Hertz in its
bankruptcy offered nothing for equity. Hertz in May 2021 selected
investment firms Knighthead Capital Management LLC and Certares
Management LLC, joined by other investors including Apollo Global
Management Inc. and a group of existing shareholders, as the
winning bidders for control of the bankrupt company. A rival group
that included Centerbridge Partners LP, Warburg Pincus LLC and
Dundon Capital Partners LLC was outbid at auction.
Hertz's Plan eliminated over $5 billion of debt, including all of
Hertz Europe's corporate debt, and will provide more than $2.2
billion of global liquidity to the reorganized Company. Hertz also
emerged with (i) a new $2.8 billion exit credit facility consisting
of at least $1.3 billion of term loans and a revolving loan
facility, and (ii) an $7 billion of asset-backed vehicle financing
facility, each on favorable terms.
HTX WELLNESS: Amends Paragon Bank & AILCO Equipment Secured Claims
------------------------------------------------------------------
HTX Wellness Group, LLC, submitted a Second Amended Plan of
Reorganization for Small Business under Subchapter V dated March 3,
2025.
The Debtor does not plan to operate any business following the
Effective Date, except for those matters incidental to the
effectuation of this Plan.
This Plan of Reorganization proposes to pay creditors of the Debtor
by: (1) iCRYO exercising its rights under the Franchise Agreement
to assume management of the franchise held by the Debtor, and (2)
iCRYO paying or assuming the liability for the secured debts to the
extent such debts are secured by collateral constituting business
personal property of the Debtor's business.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at a di minimis amount. This Plan also provides for the payment of
administrative claims and priority claims, to the extent such
claims are entitled to priority.
Class 1 consists of a single, secured claim held by Paragon Bank.
As of the Petition Date, Paragon Bank has an Allowed Claim in the
amount of $264,354.33, which bears interest at variable rate equal
to the Wall Street Journal Prime Rate + 2.75%. As of the Petition
Date, this rate 11.25 percent.
At the Effective Date, Paragon Bank will have an Allowed Claim of
$264,354.33, plus all interest that has accrued since the Petition
Date, less those adequate protections payments received by it
between the Petition Date and the Confirmation Date. Debtor
estimates that the total Allowed Claim as of the Effective Date
will be approximately, $267,907.37. No later than seven days after
the Confirmation Date, Paragon Bank shall provide the Debtor and
iCRYO with a payoff statement with a current calculation of the
Allowed Amount of Paragon Bank's claim, plus the per diem interest
accruing on such Allowed Amount. To the extent such payoff
statement differs from the estimated amount, the amount in the
payoff statement shall be deemed to be the Allowed Claim for
purposes of the treatment of this Claim.
The Allowed Claim of Paragon Bank will be treated under this Plan
by iCRYO paying the full amount due on, or before, April 1, 2025.
The amount to be paid to Paragon Bank on its Allowed Claim shall be
agreed upon by iCRYO and Paragon Bank. Following the Effective
Date, the Debtor and its Estate shall have no further liability for
payment to Paragon Bank. As consideration for iCRYO's payoff of
Paragon Bank's Allowed Claim, all assets subject to the lien of
Paragon Bank shall be transferred to iCRYO upon the Effective Date.
Debtor shall cooperate with iCRYO in completing such transfer of
assets.
Class 2 consists of the Secured claim of AILCO Equipment Finance
Group. As of the Petition Date, AILCO has an Allowed Claim in the
amount of $41,451.44, which bears interest at 12.5 percent. Payment
of this claim is secured by a purchase-money lien on an Everest
Peak Electric whole-body cryotherapy chamber (serial no. C162108).
At the Effective Date, AILCO will have an Allowed Claim of
$41,451.44, plus all interest that has accrued since the Petition
Date. Debtor estimates that the total Allowed Claim as of the
Effective Date will be approximately, $43,722.29; however, the
final amount Allowed Amount may be adjusted in a payoff statement
provided by AILCO, showing the payoff amount as of the Effective
Date.
AILCO and iCRYO have agreed to terms for payment and treatment of
ALICO's claim and will receive payment from iCRYO pursuant to those
terms beginning as of the Effective Date (the "AILCO Payoff
Amount"). As consideration of iCRYO's agreement to make payment to
AILCO, all assets subject to AILCO's lien shall be transferred to
iCRYO as of the Effective Date. Debtor shall cooperate with iCRYO
in completing such transfer of assets. AILCO will retain all of its
liens in all property described in its UCC Financing Statement
until it has received full and final payment by iCRYO.
Additionally, the Reorganized Debtor shall be entitled to a lien
that is junior to the lien on this equipment that is held by AILCO
and Paragon Bank in order to secure iCRYO's payments to AILCO and
Paragon Bank. Upon the final payment of the indebtedness due to
AILCO and Paragon Bank, all lienholders shall execute a release of
their liens, which will include a release of their UCC-1 financing
statements on file with the Texas Secretary of State.
Class 4 consists of the general, unsecured claims as well as those
portions of tax claims and secured claims that are treated as
general unsecured claims in Class 4. Holders of Allowed Claims in
Class 4 will be paid all proceeds remaining after payment of
allowed administrative claims and all required cash payments to
holders of allowed claims in Classes 1 through 3. This is estimated
to result in no more than a di minimis payment to holders of
Allowed Claims.
On the Effective Date, iCRYO will assume the Lease Agreement with
Brixmor Holdings 12 SPE, LLP and take possession and control of all
physical assets within the leased premises known as Store #13B at
3839 Bellaire Blvd., Houston, TX 77025 (the "Post-Confirmation
Franchise").
A full-text copy of the Second Amended Plan dated March 3, 2025 is
available at https://urlcurt.com/u?l=bUhMcn from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Leonard H. Simon, Esq.
William P. Haddock, Esq.
Pendergraft & Simon, LLP
2777 Allen Parkway, Suite 800
Houston, TX 77019
Telephone: (713) 528-8555
Facsimile: (713) 868-1267
About HTX Wellness Group
HTX Wellness Group, LLC, operates a business providing whole-body
and local cryotherapy, infusion services, compression therapy, and
red-light therapy under a franchise agreement with iCRYO.
HTX Wellness Group filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. S.D. Texas Case No. 24-34239) on
Sept. 11, 2024, listing up to $500,000 in assets and up to $1
million in liabilities.
Judge Jeffrey P. Norman oversees the case.
Leonard H. Simon, Esq., at Pendergraft & Simon, LLP, is the
Debtor's bankruptcy counsel.
IDEANOMICS INC: SSG Served as Investment Banker in Asset Sale
-------------------------------------------------------------
SSG Capital Advisors, LLC served as the investment banker to
Ideanomics, Inc., and subsidiaries in the sale of substantially all
assets of WAVE Charging to Tillou Management and Consulting LLC.
The sale was effectuated through a Chapter 11 Section 363 process
in the U.S. Bankruptcy Court for the District of Delaware and
closed in March 2025.
Ideanomics is a global EV company focused on driving the adoption
of electric commercial vehicles and associated sustainable energy
consumption. Ideanomics, Inc. is the parent company to several
subsidiaries in the EV industry, including WAVE Charging, VIA
Motors, and Solectrac. The Company’s thesis behind the portfolio
was to provide turnkey vehicle, finance, leasing, and energy
management services for commercial fleet operators across the
world.
In response to liquidity issues, the Company engaged in various
divestiture and restructuring initiatives with the goal of
consolidating around WAVE Charging. However, the Company remained
undercapitalized and filed for relief under Chapter 11 of the
United States Bankruptcy Code in December 2024.
SSG was retained to conduct a marketing process and facilitate the
Stalking Horse bid from Tillou, and then to solicit competing
offers to Tillou's bid. After extensive outreach to a broad
universe of potential strategic and financial acquirers, the
Stalking Horse credit bid submitted by Tillou (McMahon family
office) as the DIP lender for WAVE Charging and select other assets
was determined to be the highest and best offer. SSG's vast
experience with Chapter 11 transactions and ability to efficiently
execute a comprehensive remarketing process ensured that the sale
to Tillou optimized value for Ideanomics' stakeholders.
Other professionals who worked on the transaction include:
* Alpesh A. Amin, Chief Restructuring Officer of Ideanomics,
Rick Malagodi, Michael Flynn, and Anthony Mittiga of Riveron
Consulting, LLC., financial advisor to Ideanomics, Inc.;
* John A. Simon, Mark T. Plichta, Timothy C. Mohan, and Jake W.
Gordon of Foley & Lardner LLP, co-counsel to Ideanomics, Inc.;
* Ricardo Palacio and Gregory A. Taylor of Ashby & Geddes, PA.,
co-counsel to Ideanomics, Inc.;
* Frank F. Velocci, Bryan E. Bloom, and Michael P. Pompeo of
Faegre Drinker Biddle & Reath LLP, counsel to Tillou Management and
Consulting LLC; and
* Brendan Joyce and Alicia Masse of B. Riley Financial,
financial advisor to Tillou Management and Consulting LLC.
About Ideanomics Inc.
New York, N.Y.-based Ideanomics, Inc. is a global electric vehicle
company that is focused on driving the adoption of electric
commercial vehicles and associated sustainable energy consumption.
It is made up of 5 subsidiaries including: VIA Motors, Solectrac,
Treeletrik, Wave, and US Hybrid.
Ideanomics Inc. and seven of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-12728) on December 4, 2024. In its petition, the Debtor
reports assets between $50 million and $100 million and liabilities
ranging from $100 million to $500 million.
Foley & Lardner LLP serves as the Debtors' general bankruptcy
counsel and Ashby & Geddes, P.A. acts as the Debtors' Delaware
co-counsel. The Debtors tapped Epiq Corporate Restructuring as
noticing and claims agent. Riveron Management Services, LLC is the
Debtors' CRO and financial advisor, and SSG Advisors, LLC, is the
Debtors' investment banker and financial adviser.
IMERYS TALC: Insurers Want Italian Subsidiary's Chapter 11 Tossed
-----------------------------------------------------------------
Clara Geoghegan of Law360 reports that the insurers have asked the
Delaware bankruptcy court to dismiss the Chapter 11 petition of a
foreign affiliate of bankrupt talc miner Imerys, arguing that the
subsidiary is ineligible for bankruptcy protection.
About Imerys Talc America
Imerys Talc America, Inc. and its subsidiaries --
https://www.imerys-performance-additives.com/ -- are in the
business of mining, processing, selling and distributing talc. Its
talc operations include talc mines, plants and distribution
facilities located in Montana (Yellowstone, Sappington, and Three
Forks); Vermont (Argonaut and Ludlow); Texas (Houston); and
Ontario, Canada (Timmins, Penhorwood, and Foleyet). It also
utilizes offices located in San Jose, Calif., and Roswell, Ga.
Imerys Talc America and its subsidiaries, Imerys Talc Vermont,
Inc., and Imerys Talc Canada Inc., sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 19-10289) on Feb. 13, 2019. The
Debtors were estimated to have $100 million to $500 million in
assets and $50 million to $100 million in liabilities as of the
bankruptcy filing.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Richards, Layton & Finger, P.A., and Latham &
Watkins LLP as their legal counsel, Alvarez & Marsal North America,
LLC as financial advisor, and CohnReznick LLP as restructuring
advisor. Prime Clerk, LLC, is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
tort claimants in the Debtors' Chapter 11 cases. The tort
claimants' committee is represented by Robinson & Cole, LLP.
INTERSTATE WASTE: S&P Affirms 'B' ICR on Fungible Term Loan Add-On
------------------------------------------------------------------
S&P Global Ratings affirmed all its ratings on Interstate Waste
Services Inc. (IWS), including its 'B' issuer credit rating on the
company and 'B' issue-level rating on its senior secured debt
issued by its borrowing subsidiary, The Action Environmental Group
Inc. The '3' recovery rating on the senior secured debt is
unchanged.
S&P said, "The stable outlook reflects our expectation that IWS
will continue to increase revenue with ongoing capacity expansion
projects, acquisitions, and price increases while maintaining at
least adequate liquidity over the next 12 months. Assuming the
proposed transaction closes as we expect, the company would
maintain S&P Global Ratings-adjusted weighted-average debt to
EBITDA of between 6x and 7x."
IWS is proposing to issue additional term loans and expand its
existing revolver to support growth initiatives. Overall, IWS' pro
forma capital structure will comprise $1,072 million in first-lien
term loans (including $922 million in existing term loans and a
$150 million proposed add-on) and a $250 million upsized revolving
credit facility. Both delayed-draw term loans are now fully drawn.
S&P said, "We expect IWS to use proceeds to finance imminent
acquisitions and pay down its existing revolver balance. We view
such acquisitions as complementary to the company's overall
business strategy and portfolio of assets. We expect synergies from
such acquisitions and good waste internalization opportunities
given IWS' network and waste-by-rail disposal capabilities. We do
not expect significant integration-related issues and anticipate
certain imminent acquisitions to close in coming months. We expect
the company to maintain adequate liquidity over the next 12
months."
S&P said, "Following the close of the transaction, we expect IWS'
leverage to be elevated but improve over the coming years due to
earnings contributions from ongoing growth projects. While we
expect IWS' S&P Global Ratings-adjusted debt-to-EBITDA ratio to be
between 7x and 8x in 2024, we expect the metric to be in the 6x-7x
range on a weighted-average basis, which is appropriate for the
rating. It will be elevated in the next 12 months due to higher S&P
Global Ratings-adjusted debt to support growth spending, including
acquisitions and early spending to build up necessary
infrastructure ahead of the Commercial Waste Zones (CWZ) launch. We
expect our metric to improve to below 6.5x in 2026, which is when
EBITDA from these initiatives is expected to largely take shape. We
anticipate earnings growth to be driven by contributions from zone
implementations under CWZ and IWS' anticipated market share growth,
recent and planned acquisitions, realization of synergies, and ramp
up of internal expansion projects--such projects include the
operations of the gondola offloading facility that began operating
in mid-2024 and two new materials recovery facilities (MRF) that
opened in late 2024 and early 2025.
"We expect IWS' regional market share in the waste collections
business to increase over the next 24 months because of the zoning
plan in NYC. Under New York City's new Commercial Waste Zones
program launch, IWS was awarded the rights to participate and serve
customers in 14 out of 20 zones--each zone comprising up to three
operators with exclusive rights—plus one containerized (roll off)
zone. After the pilot zone implementation in January 2025, we
expect the first zone that IWS will operate in to launch in May
2025 and be fully implemented later in the year. While the roll-out
schedule for additional zones is uncertain at this stage, our base
case reflects our assumption that all zones will be implemented
over the next two years and IWS will benefit from a ramp up in its
waste collection market share and earnings from new customers,
which will support deleveraging.
"The stable rating outlook on IWS reflects our expectation that the
company's S&P Global Ratings-adjusted debt to EBITDA will remain on
the higher end of the 6x-7x range on a weighted-average basis.
While we expect a higher ratio over the next 12 months due to
recent debt issuances supporting growth, leverage will improve
significantly in 2026 due to the realization of additional earnings
resulting in the metric to recover to below 6.5x. We expect the
company to generate free cash flow deficits until 2026 as a result
of high start-up capital spending but anticipate it will maintain
adequate liquidity over the next 12 months. Despite
financial-sponsor ownership, we have not factored in large
acquisitions (beyond the ones planned for the first half of 2025)
or any debt-funded shareholder rewards in our base case scenario."
S&P could consider taking a negative rating action on IWS within
the next year if:
-- There were a material drop in operating performance due to
competitive pressures, operational disruptions, unexpected delays
and overruns on the commercial waste zones roll out, or a deep and
prolonged recession that reduced earnings expectations;
-- S&P Global Ratings-adjusted debt to EBITDA were about 7x or
higher on a weighted-average basis with no clear prospects for
recovery;
-- Persistently negative free cash flows resulted in liquidity or
covenant compliance becoming pressured; and
-- It could not pass on volatile input costs; material loss of
customer contracts; or large debt-financed capital outlays on
acquisitions, growth projects, or debt-funded shareholder returns.
S&P could consider taking a positive rating action on IWS within
the next year if:
-- S&P Global Ratings-adjusted debt to EBITDA dropped below 5x on
a sustained basis. This could occur if EBITDA were stronger than
expected on the back of higher-than-expected volumes or EBITDA
margins with continued internalization, tuck-in of recent
acquisitions, and ramp up of growth projects;
-- S&P expected positive free operating cash flow on a sustained
basis; and
-- There were a track record of sponsors maintaining financial
policies that support stronger credit measures.
INVATECH PHARMA: Gets Extension to Access Cash Collateral
---------------------------------------------------------
InvaTech Pharma Solutions, LLC received second interim approval
from the U.S. Bankruptcy Court for the District of New Jersey to
use cash collateral and granting adequate protection to its secured
lenders.
The second interim order authorized the company to use cash
collateral from Citibank, Provident Bank, and the U.S. Small
Business Administration as per the budget, except for funds in
Citibank IMMA Account ending 8856.
As protection, the secured creditors will be granted replacement
liens on post-petition assets, including receivables, up to the
amount of the indebtedness.
As additional protection, Provident will receive payment of $13,500
per month.
The next hearing is scheduled for April 22.
InvaTech intends to secure new funding during the bankruptcy to
support growth and capacity improvements while continuing to meet
its obligations to existing creditors.
About InvaTech Pharma Solutions LLC
InvaTech Pharma Solutions LLC, doing business as Inva Tech Pharma
Solutions LLC and Inva-Tech Pharma Solutions LLC, is a specialty
pharmaceutical company that develops, manufactures, and markets
generic prescription products. The Company's cGMP-compliant
facility supports ANDA scale manufacturing and packaging of
tablets, capsules, and liquid in bottles. With a dedicated team,
InvaTech is committed to meeting industry regulations, exceeding
deadlines, and delivering exceptional service to its partners.
InvaTech Pharma Solutions LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-11482) on February
13, 2025. In its petition, the Debtor reported estimated assets
between $1 billion and $10 billion and estimated liabilities
between $10 million and $50 million.
Judge Christine M. Gravelle oversees the case.
The Debtor is represented by Daniel M. Stolz, Esq., at Genova
Burns, LLC.
JAC RENTALS: Case Summary & Seven Unsecured Creditors
-----------------------------------------------------
Debtor: JAC Rentals Excavators, LLC
d/b/a JAC Rentals
102 S. Huntington St
Sulphur, LA 70663
Business Description: JAC Rentals specializes in heavy equipment
rentals for construction and industrial
projects. The Company offers a wide range
of machinery, including excavators, skid
steers, lifts, and tools. Serving Texas
and Louisiana, JAC Rentals provides
equipment for both large-scale projects and
smaller tasks.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
Western District of Louisiana
Case No.: 25-20139
Judge: Hon. John W Kolwe
Debtor's Counsel: Wade N. Kelly, Esq.
WADE N KELLY, LLC
Packard LaPray
2201 Oak Park Boulevard
Lake Charles, LA 70601
Tel: 337-431-7170
E-mail: staff@packardlaw.com
Total Assets: $4,593,578
Total Liabilities: $1,554,519
The petition was signed by Jacob Cameron as managing member.
A full-text copy of the petition, which contains a list of the
Debtor's seven unsecured creditors, can be accessed for free on
PacerMonitor at:
https://www.pacermonitor.com/view/5AVC7RY/JAC_Rentals_Excavators_LLC__lawbke-25-20139__0001.0.pdf?mcid=tGE4TAMA
JOONKO DIVERSITY: Seeks to Extend Plan Exclusivity to June 8
------------------------------------------------------------
Joonko Diversity Inc. asked the U.S. Bankruptcy Court for the
District of Delaware to extend its exclusivity periods to file a
plan of reorganization and obtain acceptance thereof to June 8 and
August 7, 2025, respectively.
Since the Petition Date, the Debtor has made significant and
material progress advancing the Chapter 11 Case. The Debtor
established a bar date and is in the process of adjudicating or
otherwise resolving all material claims asserted against the
Debtor. The Debtor also has filed and solicited its Plan, which was
approved by the only class entitled to vote on the Plan.
The Debtor explains that the only impediment to confirmation of its
Plan is the claim being asserted by Raz. As the Debtor has stated
before, Raz's entitlement to advancement and indemnification is a
gating issue with respect to confirmation of the Plan. If Raz is
entitled to advancement, as she asserts in her Opposition, the Plan
as solicited is not confirmable. The Plan is premised on the
assumption that Raz will receive no recovery in the Chapter 11 Case
and, as a result, recoveries will be available to holders of the
Debtor's preferred shares.
As detailed in its Claim Objection, the Debtor asserts that Raz is
not entitled to advancement for a number of reasons, including
because she is not entitled to indemnification. The Debtor also
seeks, in the alternative to claim disallowance, the estimation of
the Raz Claim at $0. The Debtor is on track to complete its
production of documents to Raz by March 28, 2025, and plans to take
Raz's deposition in April 2025. The Debtor submits that its
significant progress made to date in the Chapter 11 Case strongly
weighs in favor of extending the Exclusive Periods.
The Debtor claims that it has made and will continue to make timely
payments on its undisputed post-petition obligations in the
ordinary course, meaning that the requested extension of the
Exclusive Periods will not prejudice the legitimate interests of
post-petition creditors. As such, this factor weighs in favor of
extending the Exclusive Periods.
The Debtor asserts that the Plan has been solicited and approved by
the only voting class (i.e., preferred shareholders). Although
there are several objections to confirmation pending in addition to
the objection filed by Raz, the Debtor believes that it will be
able to resolve these objections consensually through limited
modifications to the Plan and the addition of language to the
confirmation order. As such, the Debtor submits that it has
reasonable prospects for confirmation of a modified Plan.
Joonko Diversity Inc. is represented by:
David R. Hurst, Esq.
McDermott Will & Emery LLP
The Brandywine Building
1000 N West Street, Suite 1400
Wilmington, DE 19801
Phone: (302) 485-3930
Email: dhurst@mwe.com
Catherine Lee, Esq.
444 West Lake Street, Suite 4000
Chicago, Illinois 60606
Telephone: (312) 372-2000
Facsimile: (312) 984-7700
Email: clee@mwe.com
About Joonko Diversity Inc.
Joonko Diversity Inc. is an AI-powered employee recruitment
venture.
Joonko Diversity sought relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Case No. 24-11007) on May 14, 2024. In the
petition filed by Ilan Band, as chief executive officer, the Debtor
estimated assets between $1 million and $10 million and estimated
liabilities up to $50,000.
McDermott Will & Emery LLP, led by David R. Hurst, is the Debtor's
counsel.
KLX ENERGY: Inks $125MM ABL Facility with Eclipse Business
----------------------------------------------------------
KLX Energy Services Holdings, Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
March 7, 2025 the Company entered into a Credit Agreement dated as
of March 7, 2025 with the Company, as borrower, Eclipse Business
Capital LLC, as administrative agent, as collateral agent and as
FILO administrative agent and the lenders party thereto.
The New ABL Facility is comprised of an asset-based revolving
credit facility with a $125.0 million commitment, a
first-in-last-out asset-based credit facility with a $10.0 million
commitment, and a committed incremental loan option under the
Revolving Facility with a $25.0 million commitment. The
availability of the Incremental Revolving Loans are subject to
usual and customary conditions to effectiveness, including, for
example, the Company electing to utilize such Incremental Revolving
Loans by a date certain and the payment of required fees.
Borrowings under the Revolving Facility (including, to the extent
incurred, the Incremental Revolving Loans) bear interest at a rate
equal to adjusted term SOFR plus an applicable margin of 4.625%.
Borrowings under the FILO Facility bear interest at a rate equal to
adjusted term SOFR plus an applicable margin of 6.00%. The
applicable margin under the Revolving Facility is subject to a
0.125% reduction and the applicable margin under the FILO Facility
is subject to a 0.50% reduction, in each case upon the repayment in
full of a $5,000,000 over-advance to be provided on the initial
funding date under the Revolving Facility. The New ABL Facility
will be secured by, among other things, a first priority lien on
accounts receivable and inventory and contains customary conditions
precedent to borrowing and affirmative and negative covenants. In
connection with the initial funding under the New ABL Facility,
which is contemplated to occur on March 11, 2025, the obligations
under the Company's existing Credit Agreement, dated August 10,
2018 among the Company, as borrower, certain subsidiaries of the
Company, as guarantors, JPMorgan Chase Bank, N.A., as
administrative agent, as collateral agent and as issuing lender,
and the lenders party thereto will be repaid in full and the
commitments thereunder terminated.
The initial funding under the New ABL Facility is subject to usual
and customary terms and conditions, including the provision of
collateral documents and the execution of an intercreditor
agreement establishing the relative rights and lien priorities as
between the New ABL Facility and the Indenture. The New ABL
Facility includes a springing financial covenant which requires the
Company's consolidated fixed charge coverage ratio to be at least
1.0 to 1.0 if availability under the Revolving Facility falls below
$7.0 million.
The New ABL Facility includes financial, operating and negative
covenants that limit our ability to incur indebtedness, to create
liens or other encumbrances, to make certain payments and
investments, including dividend payments, to engage in transactions
with affiliates, to engage in sale/leaseback transactions, to
guarantee indebtedness and to sell or otherwise dispose of assets
and merge or consolidate with other entities. It also includes a
covenant to deliver annual audited financial statements that are
not qualified by a "going concern" or like qualification or
exception. A failure to comply with the obligations contained in
the New ABL Facility could result in an event of default, which
could permit acceleration of the debt, termination of undrawn
commitments and enforcement against any liens securing the debt.
The New ABL Facility will contain certain other covenants
(including the ability to incur indebtedness for the purpose of
consummating permitted acquisitions, subject to the terms of the
New ABL Facility), events of default and other customary
provisions.
A full-text copy of the Credit Agreement is available at
https://tinyurl.com/4caj5xh4
About KLX Energy
KLX Energy Services Holdings, Inc. -- https://www.klxenergy.com/
--
is a provider of diversified oilfield services to leading onshore
oil and natural gas exploration and production companies operating
in both conventional and unconventional plays in all of the active
major basins throughout the United States. The Company delivers
mission-critical oilfield services focused on drilling,
completion,
production, and intervention activities for technically demanding
wells from over 60 service and support facilities located
throughout the United States.
As of September 30, 2024, KLX had $486.8 million in total assets,
$484.3 million in total liabilities, and $2.5 million in total
stockholders' equity.
* * *
As reported by the TCR in November 2024, S&P Global Ratings
lowered
its Company credit rating on Houston-based oil and gas oilfield
services company KLX Energy Services Holdings Inc. to 'CCC' from
'CCC+'. S&P also lowered the issue-level rating on KLX's senior
secured notes due November 2025 to 'CCC' from 'CCC+'. The recovery
rating remains '4′, reflecting its expectations of
average
(30%-50%; rounded estimate: 40%) recovery of principal in the
event
of a payment default.
Moreover, Moody's Ratings changed KLX Energy Services Holdings,
Inc.'s (KLXE) outlook to negative from positive. The Caa1
Corporate
Family Rating, Caa1-PD Probability of Default Rating and Caa1
senior secured notes ratings were affirmed. The SGL-2 Speculative
Grade Liquidity Rating (SGL) was changed to SGL-4.
KLX ENERGY: Inks $232MM Securites Purchase Agreement
----------------------------------------------------
KLX Energy Services Holdings, Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
March 7, 2025, the Company and certain of its subsidiaries party
thereto entered into a Securities Purchase Agreement with certain
holders of its existing 11.500% senior secured notes due 2025,
pursuant to which the Company has agreed to issue and sell to the
Investors (a) approximately $232 million in aggregate principal
amount of Senior Secured Floating Rate Cash / PIK Notes due 2030
and (b) warrants entitling the holders thereof to purchase, in the
aggregate, up to 2,373,187 shares of the Company's common stock,
par value $0.01 per share, at an exercise price of $0.01 per share,
subject to adjustment in exchange for (i) approximately $78 million
in aggregate cash consideration and (ii) approximately $144 million
aggregate principal amount of Existing Notes, which will be
cancelled by the Company upon receipt thereof. The Company intends
to use the net cash proceeds from the Refinancing, together with
cash on hand, to redeem the remaining Existing Notes on March 30,
2025 pursuant to its previously issued notice of conditional
redemption.
The closing of the Refinancing is expected to occur on or about
March 11, 2025, subject to certain closing conditions.
The New Notes will mature in March 2030. The Company will pay
interest on the New Notes, at its election, in cash or additional
Notes paid-in-kind on one-, three- or six-month interest periods.
The New Notes will bear a floating rate of interest of Term SOFR
plus the Applicable Margin (as defined in the indenture governing
the New Notes based on the Secured Net Leverage Ratio of the
Company, payable on the last day of the applicable interest period,
which shall include a 100 basis point premium for any period where
interest is paid-in-kind.
The New Notes will be senior secured obligations of the Company
secured by a first priority security interest on substantially all
of the Company's assets and a second priority security interest on
the collateral which secures the New ABL Facility on a first
priority basis, subject in each case to certain excluded assets.
The New Notes will be initially fully and unconditionally
guaranteed by each of the Company's current subsidiaries. The New
Notes will also be guaranteed by each of the Company’s future
subsidiaries that guarantee the Company's indebtedness or
indebtedness of guarantors, including under the New ABL Facility
and such subsidiaries that become guarantors in the future will
also pledge their collateral in support of such guarantees. The
guarantees will be senior secured obligations of the guarantors
secured by a first priority security interest on substantially all
of the guarantors’ assets (other than collateral securing the New
ABL Facility on a first priority basis) and a second priority
security interest on the guarantors’ assets which secure the New
ABL Facility on a first priority basis, subject in each case to
certain excluded assets.
The Company will be required to redeem the New Notes in an amount
equal to 2.00% per annum of all Notes outstanding as of the prior
applicable Interest Payment Date (as defined in the Indenture) on
the last business day of each of March, June, September and
December, commencing on March 31, 2025. Additionally, upon certain
changes of control, consummation of certain asset sales and other
events, the Company will be required to repurchase the New Notes at
the applicable redemption prices.
The Indenture will contain certain affirmative and negative
covenants, including covenants requiring the Company to demonstrate
compliance with total net leverage ratio and net capital
expenditures and restricting the Company’s ability to incur
certain liens and indebtedness, enter into certain transactions and
merge or consolidate with any other entity or convey, transfer or
lease all or substantially all of the Company’s properties and
assets to another person, which, in each case, will be subject to
certain limitations and exceptions. The Indenture will permit the
Company to incur additional pari passu indebtedness of up to
$150,000,000 within 12 months of the Closing (including for the
purpose of consummating permitted acquisitions and investments)
subject to the terms and conditions contained in the Indenture and
will contain certain other covenants, events of default and other
customary provisions.
The Warrant Agreement governing the Warrants will stipulate that
the Company will file a registration statement with the Securities
and Exchange Commission with respect to the shares of Common Stock
underlying the Warrants (the “Warrant Shares”). The Warrants
will be exercisable immediately, and in lieu of exercising such
Warrant, the holders thereof may convert their Warrants, in whole
or in part, into the number of Warrant Shares pursuant to the terms
of the Warrants prior to the expiration date.
The Securities Purchase Agreement contains customary
representations, warranties and covenants of the Company and the
Investors, and the parties have agreed to indemnify each other for
losses related to breaches of their respective representations and
warranties. Upon Closing, the Company has agreed to reimburse the
Investor for certain expenses.
About KLX Energy
KLX Energy Services Holdings, Inc. -- https://www.klxenergy.com/
--
is a provider of diversified oilfield services to leading onshore
oil and natural gas exploration and production companies operating
in both conventional and unconventional plays in all of the active
major basins throughout the United States. The Company delivers
mission-critical oilfield services focused on drilling,
completion,
production, and intervention activities for technically demanding
wells from over 60 service and support facilities located
throughout the United States.
As of September 30, 2024, KLX had $486.8 million in total assets,
$484.3 million in total liabilities, and $2.5 million in total
stockholders' equity.
* * *
As reported by the TCR in November 2024, S&P Global Ratings
lowered
its Company credit rating on Houston-based oil and gas oilfield
services company KLX Energy Services Holdings Inc. to 'CCC' from
'CCC+'. S&P also lowered the issue-level rating on KLX's senior
secured notes due November 2025 to 'CCC' from 'CCC+'. The recovery
rating remains '4′, reflecting its expectations of
average
(30%-50%; rounded estimate: 40%) recovery of principal in the
event
of a payment default.
Moreover, Moody's Ratings changed KLX Energy Services Holdings,
Inc.'s (KLXE) outlook to negative from positive. The Caa1
Corporate
Family Rating, Caa1-PD Probability of Default Rating and Caa1
senior secured notes ratings were affirmed. The SGL-2 Speculative
Grade Liquidity Rating (SGL) was changed to SGL-4.
LANDMARK HOLDINGS: Gets OK to Use Cash Collateral Until April 11
----------------------------------------------------------------
Landmark Holdings of Florida, LLC and its affiliates received
interim approval from the U.S. Bankruptcy Court for the Middle
District of Florida to use cash collateral until April 11.
The order authorized the companies to use cash collateral to pay
the expenses set forth in their budget, with a 10% variance
allowed.
Amerant Bank N.A., a secured creditor, was granted a replacement
lien on post-petition cash collateral as protection for the use of
its cash collateral. In case its interest in the cash collateral is
diminished, Amerant Bank will be granted a superpriority claim.
The next hearing is set for April 10.
Amerant Bank is represented by:
Brian P. Yates, Esq.
Garbett, Allen, Roza & Yates, P.A.
Brickell City Tower
80 S.W. Eighth Street, Suite 3100
Miami, FL 33130
Telephone: (305) 579-0012
Email: byates@garlawfirm.com
About Landmark Holdings of Florida
Landmark Holdings of Florida, LLC and seven affiliates filed
Chapter 11 petitions (Bankr. M.D. Fla. Lead Case No. 25-00397) on
March 9, 2025. The petitions were signed by Landmark CEO Bryan
Day.
At the time of the filing, Landmark reported between $50 million
and $100 million in assets and between $50 million and $100 million
in liabilities.
Judge Caryl E. Delano oversees the cases.
The Debtors are represented by:
Jamie Zysk Isani, Esq.
Hunton Andrews Kurth, LLP
Tel: 305-536-2724
Email: jisani@hunton.com
LEVEL 3 FINANCING: Moody's Rates New Sec. Term Loan Due 2032 'B1'
-----------------------------------------------------------------
Moody's Ratings assigned B1 rating to Level 3 Financing, Inc.'s
(Level 3) senior secured term loan B maturing in 2032. All other
ratings at Lumen Technologies, Inc.'s (Lumen), Level 3 and Qwest
Corporation (Qwest) remain unchanged, including Lumen's B3
corporate family rating and B3-PD probability of default rating.
Lumen's SGL-1 Speculative Grade Liquidity Rating (SGL) also remains
unchanged. The outlook remains stable.
Proceeds from the proposed $2,400 million senior secured term loan
B facility offering will be used to refinance the existing Level 3
senior secured Term Loan B1 and B2 due in 2029 and 2030,
respectively. Same as the existing facilities, the proposed senior
secured term loan B facility is covenant lite with no financial
covenants. Pro forma for this refinancing Moody's projects Lumen's
total debt-to-EBITDA (inclusive of Moody's adjustments) will be
around 5.1x at year-end 2025. At the close of the transaction
Moody's expects to withdraw the ratings of the existing Level 3
senior secured Term Loan B1 and B2 due in 2029 and 2030;
respectively.
The B1 rating assigned to the senior secured term loan B facility
is two notches above Lumen's CFR reflecting its structural
seniority to Level 3's backed senior secured second lien notes
rated B3, and backed senior unsecured notes rated Caa1, and all the
debt at Lumen (except to the extent of the guarantees of the super
priority revolving credit facilities at Lumen).
RATINGS RATIONALE
Lumen's B3 CFR, reflects execution risks associated with the
company's elevated capex program, high leverage, continued
declining revenue trends, and remaining uncertainty around the pace
of recovery in earnings. In addition, Moody's ratings consider the
highly competitive industry Lumen operates in, limited pricing
power and continued customer churn, particularly in its mass market
division. To offset these competitive challenges, Lumen is
aggressively reinvesting in its business to (i) deliver compelling
value add solutions such as network-as-a-service for its enterprise
customers, (ii) deploy additional fiber strands to meet growing
demand from large corporation to secure future fiber capacity, and
(iii) provide faster broadband speeds for its Mass Markets
subscribers.
In the short term, Moody's expects capex spending and operating
expenses to remain elevated negatively impacting the company's
credit profile until year end 2026. For the next two years Moody's
expects debt-to-EBITDA (inclusive of Moody's adjustments) to remain
elevated at around 5x, with the potential for improvement in 2027.
Lumen's ability to reduce debt and generate stable free cash flow
over the coming years will be important drivers of the credit
profile.
The SGL-1 speculative grade liquidity rating reflects Moody's
expectations that Lumen will have very good liquidity over the next
12 months, supported by (i) around $1.9 billion in cash as of
December 31, 2024, (ii) about $737 million in availability (net of
$217 million in letter of credits) under the company's
approximately $954 million senior secured revolving credit facility
expiring in June 2028, (iii) Moody's expectations of around $850
million of free cash flow in 2025, and (iv) a long dated debt
maturity schedule with no significant maturities due prior to
2028.
The stable outlook reflects Moody's expectations that Lumen over
the next twelve to eighteen months will maintain very good
liquidity, despite elevated levels of capital expenditures, and
declining revenue and EBITDA trends.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The rating could be upgraded if Lumen achieves predictable and
material free cash flow generation that helps address the
sustainability of its capital structure, and the company maintains
very good liquidity, and total debt-to-EBITDA is sustained below
4.5x.
The rating could be downgraded if the company's liquidity position,
operating performance or ability to service its debt deteriorates,
the company suffers a material decline / cancellation of its $8.5
billion order book, or total debt-to-EBITDA is sustained above
5.5x.
Headquartered in Monroe, Louisiana, Lumen Technologies, Inc., is an
integrated communications company that provides an array of
communications services to large enterprise, mid-market enterprise,
government and wholesale customers in its larger Business segment.
The company's smaller Mass Markets segment primarily provides
broadband services to its residential and small business customer
base.
The principal methodology used in this rating was
Telecommunications Service Providers published in November 2023.
LIBERATED BRANDS: Gets Final $45MM DIP Approval in Chapter 11
-------------------------------------------------------------
Clara Geoghegan of Law360 Bankruptcy Authority reports that on
March 19, 2025, clothing retailer Liberated Brands received final
approval for its debtor-in-possession loan, informing a Delaware
bankruptcy judge that it had reached a settlement with an apparel
designer related to the increased DIP financing.
About Liberated Brands
Liberated is in the sport, outdoor, and lifestyle apparel industry.
Liberated offers its customers access to products under
high-quality brands such as Volcom, Billabong, Quiksilver, Spyder,
RVCA, Roxy, and Honolua, in its 124 retail locations across the
United States and through other channels. As an omnichannel apparel
licensee with deep-rooted and unique expertise in trend forecasting
and brand development, Liberated has attracted loyal customers in
more than 100 countries. Liberated operates regional headquarters
in North America, Europe, Japan, and Australia.
On Feb. 2, 2025, Liberated Brands LLC and eight affiliated debtors
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10168). The
cases are pending before Honorable Judge J. Kate Stickles.
Liberated has tapped Kirkland & Ellis, LLP and Klehr Harrison
Branzburg LLP to facilitate the Chapter 11 restructuring process.
AlixPartners LLC is the Debtors' financial advisor. Stretto is the
claims agent.
JP Morgan has retained Morgan, Lewis & Bockius LLP and Berkeley
Research Group, LLC.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
LODGING ENTERPRISES: Seeks to Extend Plan Exclusivity to June 23
----------------------------------------------------------------
Lodging Enterprises, LLC, asked the U.S. Bankruptcy Court for the
District of Kansas to extend its exclusivity periods to file a plan
of reorganization and obtain acceptance thereof to June 23 and
August 21, 2025, respectively.
The Debtor claims that it has now resolved the majority of the
foregoing matters and otherwise stabilized the status of this
reorganization case. Debtor is currently moving forward with the
formulation of a strategy for the resolution of the case. In
particular, Debtor believes that it is now approaching the late
stages of a comprehensive agreement with Lender that would
effectuate a successful outcome that is favorable to all
stakeholders in this case.
The Debtor contends that good grounds exist for approval of an
extension of exclusivity. Debtor has not engaged in any pattern of
delay in this case and is not seeking this extension as a
negotiating tactic to impede the conclusion of the case or leverage
creditors with an unreasonable plan of reorganization. To the
contrary, this request is intended to maintain a framework
conducive to an orderly, efficient and cost-effective resolution of
this case.
The Debtor explains that it has shown good faith progress towards a
successful conclusion to this case. Among other things, Debtor has
made material progress on a settlement term sheet with Lender which
could result in a consensual resolution of the bankruptcy case with
Lender. Thus, Debtor is not engaging in any delay, let alone
unreasonable delay.
Further, Debtor has addressed and, to some extent, continues to
address various issues listed. Debtor has successfully engaged with
its major creditor constituencies (i.e. the prepetition lender and
the Unsecured Creditors Committee) in establishing a firm basis for
post-petition business operations through consensual budgets and
corresponding authorization for the use of cash collateral. In
particular, Debtor negotiated a fourth consensual order for ongoing
use of cash collateral (through March 31, 2025) and continues to
pay its post petition obligations.
The Debtor asserts that denial of the requested extension of
exclusivity could impair its administration of this Chapter 11 case
and potentially undermine the substantial efforts of Debtor's
management and professionals to stabilize business operations and
explore restructuring options to preserve the value of the business
enterprise.
The Debtor believes that this request to extend the exclusivity
periods does not prejudice the interests of creditors as it
facilitates its efforts to maximize value for all of its
stakeholders and reach a successful conclusion to this Chapter 11
proceeding.
Lodging Enterprises, LLC is represented by:
Jonathan Margolies, Esq.
SEIGFREID & BINGHAM, P.C.
2323 Grand Boulevard Suite 1000
Kansas City, MO 64108
Tel: (816) 265-4195
Fax: (816) 474-3447
Email: jmargolies@sb-kc.com
- and -
Timothy A. ("Tad") Davidson II, Esq.
Brandon Bell, Esq.
Kaleb Bailey, Esq.
HUNTON ANDREWS KURTH LLP
600 Travis Street, Suite 4200
Houston, TX 77002
Phone: (713) 220-4200
Email: taddavidson@HuntonAK.com
bbell@HuntonAK.com
kbailey@HuntonAK.com
- and -
Jason W. Harbour, Esq.
HUNTON ANDREWS KURTH LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, Virginia 23219
Phone: (804) 788-8200
Email: jharbour@HuntonAK.com
About Lodging Enterprises
Founded in 1984, Lodging Enterprises, LLC, a company in Wichita,
Kansas, offers a full suite of crew accommodations, specializing in
24-hour food, lodging and hospitality services. A large segment of
the company's clientele are composed of railroad, and other
transportation-industry workers for whom it is essential that
lodging is available. The company owns and operates 44
Wyndham-branded hotels and 27 restaurants located in 23 states
across the country.
Lodging Enterprises filed a Chapter 11 petition (Bankr. D. Kan.
Case No. 24-40423) on June 26, 2024, with $100 million to $500
million in both assets and liabilities.
Jonathan Margolies, Esq., at SEIGFREID & BINGHAM, P.C., is the
Debtor's counsel.
LSR TANGLEWOOD: Rocky Reagan's Contribution to Fund Plan Payments
-----------------------------------------------------------------
LSR Tanglewood, LLC and LSR Canyon, LLC filed with the U.S.
Bankruptcy Court for the Western District of Texas a Disclosure
Statement to Joint Plan of Reorganization dated March 3, 2025.
The Debtors both own real estate - LSR Tanglewood, LLC, 102 Ruelle
Lane, Unit 106-C, San Antonio, TX 78209 and LSR Canyon, LLC, 2682
Colleen Dr., Canyon Lake, TX 78133.
Both pieces of real property secure a Note to TXN Bank based upon a
proof of claim in the amount of $346,771.83 filed on January 9,
2025. 102 Ruelle Lane, Unit 106-C, San Antonio, TX is a condominium
that the Debtors use when they are in San Antonio.
The Debtor has decided to lease out the condo to generate income to
help satisfy TXN Bank under the Plan. 2682 Colleen Dr., Canyon
Lake, TX is the Debtor's homestead where they reside full time.
The Debtors have been working with TXN Bank (pre- and
post-petition) on its note secured by these properties. No
agreement was reached between the Debtors' and TXN Bank, which
resulted in the bank posting the real properties for a non-judicial
foreclosure sale on November 5, 2024. The Debtors filed these
bankruptcy cases to stop the foreclosure sale of the real
properties.
Class 5 consists of the Unsecured Claims against LSR Tanglewood.
There are no claims in Class 5.
The Class 6 claim consists of the equity owners of LSR Tanglewood,
LLC, which is owned as follows: Leslee Saunders Reagan (100%). The
Class 6 claims are unimpaired under the Debtor's Joint Plan of
Reorganization and not entitled to vote on the Joint Plan.
Class 4 consists of the Unsecured Claims against LSR Canyon. There
are no claims in Class 4.
The Class 5 claim consists of the equity owners of LSR Canyon, LLC,
which is owned as follows: Leslee Saunders Reagan (100%). The Class
5 claim is unimpaired under the Joint Plan of Reorganization and
not entitled to vote on the Joint Plan.
The Joint Plan is feasible as a result of the income being
generated by the Debtors from the contribution of Rocky Reagan. The
income is projected to be sufficient to service the debts of the
Debtors for the foreseeable future. The feasibility of the Debtors'
Joint Plan is effected by the values and interest rates set by the
Court.
A full-text copy of the Disclosure Statement dated March 3, 2025 is
available at https://urlcurt.com/u?l=FDMXkM from PacerMonitor.com
at no charge.
Counsel to the Debtors:
William R. Davis Jr., Esq.
Langley & Banack, Inc.
745 E. Mulberry, Suite 700
San Antonio, TX 78212
Telephone: (210) 736-6600
Facsimile: (210) 735-6889
Email: wrdavis@langleybanack.com
About LSR Tanglewood
LSR Tanglewood, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Texas Case No.
24-52213) on Nov. 1, 2024, listing $100,001 to $500,000 in both
assets and liabilities. Brad Odell, Esq., at Mullin Hoard & Brown,
LLP, serves as Subchapter V trustee.
Judge Craig A Gargotta presides over the case.
William R. Davis, Jr., Esq., at Langley & Banack, Inc., is the
Debtor's legal counsel.
MADISON IAQ: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed all its ratings on Madison IAQ LLC,
including its 'B' issuer credit rating. S&P assigned its 'B'
issue-level rating to the proposed $1.75 billion first-lien term
loan. The recovery rating is '4', indicating its expectation for
average (30%-50%; rounded estimate 45%) recovery in the event of a
payment default.
The stable outlook reflects S&P's forecast for S&P Global
Ratings-adjusted leverage to improve below 7x through 2026 through
EBITDA growth and solid free cash flow generation.
S&P said, "We forecast the company will deleverage under 7x within
the first two years following the acquisition. Pro forma for the
proposed debt raise and to include the target's operations for a
full year, we forecast Madison Air's S&P Global Ratings-adjusted
leverage to increase to slightly above 7x in 2025, from the high-5x
area at the end of 2024 (based on preliminary year-end financials).
While S&P Global Ratings-adjusted leverage of around 7x is at our
threshold for considering lower ratings, we forecast the company
will lower its leverage about a turn by the end of 2026 driven
largely by growth in EBITDA and good cash generation. S&P Global
Ratings-adjusted leverage of around 6x provides sufficient cushion
relative to the downside threshold to absorb potential modest
underperformance. Our forecast assumes the company's financial
policy is aligned with deleveraging post-acquisition. However, in a
scenario where operating performance is modestly weaker than we
assume, or the company pursues additional debt-funded acquisitions
or leveraging returns of capital to its parent, we would consider a
lower rating.
"We assume modest organic revenue increases and margin improvement
over time will drive EBITDA growth. Our forecast for adjusted
leverage incorporates our assumption for mid-single-digit percent
organic revenue growth through 2026, driven by continued, albeit
moderating, economic growth, our assumption for growth in repair
and remodel activity, and growth in housing starts. We assume
low-single digit percent price increases supported by continued
inflation growth. The company's large backlog exiting 2024 also
supports our revenue assumption.
"We assume Madison Air's S&P Global Ratings-adjusted EBITDA margin
declines modestly to around 25% in 2025, from our estimate of about
25.8% in 2024, driven largely by transaction-related expenses and
our assumption that costs to achieve acquisition-related cost
synergies outpace cost savings. By 2026, we forecast the company's
S&P Global Ratings-adjusted EBITDA margin to increase toward 27%
driven by volume growth, the roll off of transaction-related
expenses, and our assumptions that SG&A expenses grow less than
revenue and the company will realize net cost savings from actions
completed in 2025. Given Madison Air's track record following prior
acquisitions, we believe it will realize the majority of its
anticipated cost synergies, particularly related to eliminating
duplicative services, procurement savings, and footprint
consolidations.
"Madison Air continues to generate good levels of FOCF under our
forecast. Pro forma for the completion of the acquisition, and
notwithstanding higher interest expense associated with the
proposed term loan, Madison Air's larger EBITDA base should help
drive continued good FOCF generation through 2026. We forecast
unadjusted FOCF to grow modestly year over year in 2025 but remain
in the mid- to high-$200 million area before growing to the low
$300 million range in 2026. Our forecast assumes working capital is
a modest use of cash through 2026 to support revenue growth, and
total capital expenditures (capex) increase to support growth
related projects and a larger revenue base. Under our forecast,
FOCF is sufficient to fund modest tax related distributions to the
company's parent and $43 million in annual term loan amortization
payments (inclusive of amortization under the proposed term loan).
"We assume remaining cash is largely held on the balance sheet or
used for smaller, bolt-on acquisitions.
"The acquisition modestly enhances our view of Madison Air's
business position. The acquisition increases Madison Air's revenue
and EBITDA base by about 20%, relative to 2024 (excluding the NGH
business), translating to scale that compares favorably with many
similarly rated peers. The acquisition expands on Madison Air's
existing product offerings, particularly within residential end
markets, through its humidification, dehumidification, filters, and
zoning product offerings. Madison Air's current residential product
offerings largely consist of kitchen range hoods, ventilation, and
bath fans. The acquisition facilitates Madison Air's ability to go
to market with a larger whole-home product offering. Furthermore,
we believe the acquisition will drive continued above average S&P
Global Ratings-adjusted EBITDA margin, in the mid-20% area, over
the next few years.
"Nevertheless, the company maintains some revenue concentration
(about 38% of pro forma revenue) in the North American residential
market. We believe this exposure may drive some EBITDA volatility
over time since changes in consumer spending, interest rates,
housing starts, and existing home sales affect demand in this
market.
"The stable outlook reflects our forecast for S&P Global
Ratings-adjusted leverage to improve below 7x through 2026 through
EBITDA growth and good free cash flow generation.
"We could lower our ratings if we expect Madison Air's S&P Global
Ratings-adjusted leverage to be above 7x on a sustained basis. This
could occur if demand over the next year is weaker than we are
assuming, if the costs to achieve synergies are higher than we
assume, or if the company pursues additional debt funded
acquisitions or large distributions to its parent.
"While unlikely given our forecast for elevated S&P Global
Ratings-adjusted leverage over the next two years, we could raise
our ratings in the longer term if we expect the company's S&P
Global Ratings-adjusted leverage remained under 5x, with sufficient
cushion to absorb potential modest underperformance, or higher
acquisition spending or distributions to its parent."
MARINUS PHARMACEUTICALS: Morgan Stanley Disposes of Equity Stake
----------------------------------------------------------------
Morgan Stanley and Morgan Stanley & Co. LLC disclosed in Amendment
No. 1 to a Schedule 13G filing with the U.S. Securities and
Exchange Commission that as of February 28, 2025, they beneficially
own zero shares of Marinus Pharmaceuticals, Inc.'s common stock.
As of such date, Morgan Stanley has ceased to be the beneficial
owner of more than five percent of the class of securities.
About Marinus Pharmaceuticals
Marinus Pharmaceuticals, Inc. -- www.marinuspharma.com -- is a
commercial-stage pharmaceutical company dedicated to the
development of innovative therapeutics for seizure disorders. The
Company first introduced FDA-approved prescription medication
ZTALMY (ganaxolone) oral suspension CV in the U.S. in 2022 and
continues to invest in the potential of ganaxolone in IV and oral
formulations to maximize therapeutic reach for adult and pediatric
patients in acute and chronic care settings.
Philadelphia, Pennsylvania-based Ernst & Young LLP, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 5, 2024, citing that the Company has suffered
recurring losses from operations and has stated that substantial
doubt exists about the Company's ability to continue as a going
concern.
As of June 30, 2024, Marinus Pharmaceuticals had $87.1 million in
total assets, $134.4 million in total liabilities, and $47.3
million in total stockholders' deficit.
MARKOV CORPORATION: Gets Extension to Access Cash Collateral
------------------------------------------------------------
Markov Corporation received third interim approval from the U.S.
Bankruptcy Court for the Middle District of Florida, Fort Myers
Division, to use cash collateral.
The third interim order authorized the company to use cash
collateral to pay the expenses set forth in its budget, with a 10%
variance allowed.
The company projects total monthly operational expenses of
$33,952.
As protection, the U.S. Small Business Administration was granted a
replacement lien on the company's assets. The secured creditor will
also be granted an administrative claim in case of any diminution
in the value of its cash collateral.
Markov's authority to use cash collateral expires on April 10,
unless extended by further order of the court or written consent of
the secured creditor.
The next hearing is set for April 10.
About Markov Corporation
Markov Corporation sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01575) on October 17,
2024, listing between $100,001 and $500,000 in assets and between
$500,001 and $1 million in liabilities.
Judge Caryl E. Delano presides over the case.
The Debtor is represented by:
Jonathan M. Bierfeld, Esq.
Martin Law Firm Pl
Tel: 239-443-1094
Email: jonathan.bierfeld@martinlawfirm.com
MAWSON INFRASTRUCTURE: Board OKs Increase of CEO's Base Salary
--------------------------------------------------------------
Mawson Infrastructure Group Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
November 26, 2024, the Board of Directors of the Company based on
the review and recommendation of the Compensation Committee of the
Board approved bonus compensation to the Chief Executive Officer
and President of the Company, Rahul Mewawalla, for his performance
during the Company's fiscal year ended December 31, 2024,
consisting of an award of 1,235,030 restricted stock units under
the Company's 2024 Omnibus Equity Incentive Plan and $2,578,125 as
cash, which was paid on the following schedule: (i) $859,375 in
December 2024 (ii) $859,375 in January 2025 and (iii) $859,375 in
February 2025.
The Equity Award was granted on February 26, 2025 and 100% of the
RSUs vested on the Grant Date and the Settlement Date is August 5,
2025. On December 19, 2024, the Board of Directors, based on the
review and recommendation of the Compensation Committee, approved a
base salary increase for Mr. Mewawalla to $1,200,000 commencing on
January 1, 2025. In reviewing and approving the change, the
Compensation Committee and the Board considered, among other
factors, that Mr. Mewawalla is a high-performing CEO and President,
the transformative nature of the Company, his skill-sets and
contributions, and considering the long-term interests of the
Company.
About Mawson Infrastructure Group
Mawson Infrastructure Group specializes in data centers for
Bitcoin
miners and AI firms.
Mawson Infrastructure Group's creditors filed a Chapter 11
involuntary petition against the company (Bankr. D. Del. Case No.
24-12726) on December 4, 2024. The petitioning creditors include W
Capital Advisors Pty Ltd, Marshall Investments MIG Pty Ltd, and
Rayra Pty Ltd.
The petitioners' counsel is Robert J. Dehney, Esq., at Morris,
Nichols, Arsht & Tunnell.
Judge Mary F. Walrath handles the case.
MAXEON SOLAR: Zhonghuan Singapore Holds 59.2% Equity Stake
----------------------------------------------------------
Zhonghuan Singapore Investment & Development Pte. Ltd. and TCL
Zhonghuan Renewable Energy Technology Co., Ltd., disclosed in
Amendment No. 13 of a Schedule 13D filing with the U.S. Securities
and Exchange Commission that as of February 28, 2025, they
beneficially own 9,959,362 shares of Maxeon Solar Technologies,
Ltd.'s common stock, representing 59.2% of the Company's
outstanding shares of stock.
The sale of 100% equity interest in SunPower Philippines
Manufacturing Ltd, a Cayman incorporated legal entity and wholly
owned indirect subsidiary of the Company, to TCL Zhonghuan
Renewable Energy Technology Co Ltd. and/or its subsidiaries, the
Company's controlling shareholder, was consummated on February 28,
2025, pursuant to the terms of that Sale and Purchase Agreement
entered into by and between SunPower Technology Ltd., a subsidiary
of the Company, and Lumetech PTE Ltd., a subsidiary of TZE, on
January 26, 2025.
On the Closing Date, the Company and Purchaser also entered into
the Procurement Agency Agreement, and Purchaser and a subsidiary of
the Issuer entered into the Transitional Services Agreement and the
Bilateral Development Services Agreement, respectively. The
transactions contemplated under the SPA received the requisite
consents and approvals, including the ODI Approval.
About Maxeon Solar
Maxeon Solar Technologies, Ltd. is a Singapore-based company that
designs and manufactures photovoltaic panels. The company was
previously a division of the American SunPower company before it
was spun off in August 2020. Maxeon is still the primary provider
of solar panels for SunPower.
Singapore-based Ernst & Young LLP, the Company's auditor since
2020, issued a "going concern" qualification in its report dated
May 30, 2024, citing that the Company has suffered recurring
losses
from operations and negative free cash flows and has stated that
substantial doubt exists about the Company's ability to continue
as
a going concern.
MERIDIANLLINK INC: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) for MeridianLink, Inc. and ML California Sub, Inc.
(collectively, MeridianLink) at 'BB-'. Fitch has also affirmed
MeridianLink's first lien senior secured term loan and revolving
credit facility at 'BB+' with a Recovery Rating of 'RR1'. The
Rating Outlook is Stable.MeridianLink's ratings are supported by
its high recurring revenue and strong retention rates, low
leverage, and solid liquidity, which benefits from robust FCF
generation. However, significant exposure to financial institutions
and credit unions constrains the ratings due to a concentrated end
market.
Key Rating Drivers
Leverage remains low: At YE 2024, EBITDA leverage was 4.0x. Fitch
forecasts it will remain below this level over the forecast period,
assuming no major debt-funded acquisitions occur. Historically, the
company has targeted net leverage below 3.0x, although this
calculation method differs from Fitch's definition. This target
aligns with other Fitch-rated software peers in the 'BB' rating
category. Although M&A could temporarily increase leverage, Fitch
expects EBITDA leverage to stay below 4.0x.
Despite strong FCF generation, Fitch does not expect the company to
reduce its leverage significantly, particularly as it is majority
owned and controlled by its private equity sponsor, Thoma Bravo.
The company's capital allocation strategy includes business
investment, share repurchases, and acquisitions. In 2024, the
company actively engaged in share repurchases, spending over $100
million on buybacks. A large debt-funded acquisition could weaken
the company's credit profile from its current strong position.
Robust FCF Generation: Fitch expects strong FCF generation, and
forecasts FCF margins in the low 20s during the rating horizon,
bolstering the company's liquidity. This robust FCF is expected to
be driven by EBITDA growth from increased operational leverage and
restructuring efforts, along with low interest expenses and capex.
End Market Concentration: MeridianLink primarily generates revenue
from the financial services sector, making it susceptible to
fluctuations in lending activity. This risk is intensified by
macroeconomic uncertainty and sector pressures, particularly due to
low mortgage volumes and credit tightening by community banks and
credit unions. However, this industry concentration risk is
mitigated by the company's product diversification and low customer
concentration.
Resilient Business Model Through Economic Cycle: Fitch believes
MeridianLink's products and services provide resilience through
economic cycles. In an expansionary environment, MeridianLink can
generate sizable returns from volume-based loan applications.
During a recession, its focus on collection solutions and deposit
accounts enables steady fee generation based on volume. Over the
last 20 years, credit union loan activity declined only once, by
1.4% in 2010, per the National Credit Union Administration.
High Revenue Retention: As of December 2024, 84% of MeridianLink's
revenue was subscription-based, with a net retention rate exceeding
100%. This strong retention highlights the success of the company's
land-and-expand strategy, driving customer adoption through
cross-selling and up-selling. MeridianLink's business model
supports the digital transformation and efficiency of financial
institutions. Fitch believes retention rates will remain high, as
the company's multiyear contracts offer revenue visibility.
Key Category Leader Across Market Segments: MeridianLink is a
leader within each market segment it competes in. In consumer
lending, it is the leading incumbent against a handful of providers
like Bottomline Technologies, Inc., Gro Solutions, Inc., CUDL, and
Temenos AG. Management differentiates itself through best-of-breed
technology and referrals from its existing client base. In consumer
data, the company is the leading incumbent against SharperLending
LLC in a fragmented, niche market and is one of seven approved
sponsoring credit vendors for Fannie Mae.
Continued Ownership Concentration: Fitch views the company's
concentrated private equity ownership as an inherent credit risk,
with Thoma Bravo holding a 38.04% stake as of the end of December
2024, down from 46.6% at the end of March 2024. Thoma Bravo retains
the right to nominate a majority of the board members as long as it
beneficially owns at least 30% of the outstanding common stock.
Currently, two of the nine board seats are occupied by Thoma Bravo
employees.
Peer Analysis
MeridianLink's rating benefits from its strong market position in
consumer lending, mortgage loans, and data verification, alongside
a resilient portfolio that withstands economic cycles. The
company's services enhance loan application efficiency and align
with automated lending trends, deemed mission-critical by financial
institutions, ensuring stable demand.
The deep integration of MeridianLink's solutions into customer
systems supports high revenue retention. However, Fitch sees the
volume-based revenue model as potentially volatile, although the
minimum volumes component provides some stability.
MeridianLink's peers include Dragon Buyer, Inc. (B+/Stable), as
both provide SaaS-based solutions to financial institutions. Fitch
estimates Dragon's EBITDA leverage to be in the mid-to-high 4x
range, which is higher than that of MeridianLink. Fitch also
compares MeridianLink to Quartz AcquireCo, LLC (BB-/Stable) and
Waystar Technologies, Inc. (BB-/Positive). Like MeridianLink, Fitch
estimates EBITDA leverage for both peers to remain below 4x.
Despite low leverage expectations, MeridianLink's IDR is
constrained by its concentrated exposure to financial services
sector.
Key Assumptions
- Fitch projects revenue increases in the low- to mid-single digits
over the forecast horizon;
- Fitch forecasts EBITDA margins in the high-30s;
- Fitch expects capital intensity of approximately 3% of revenues
throughout the forecast period;
- Fitch assumes aggregate tuck-in acquisitions of $150 million to
keep its software solutions innovative through 2028;
- Fitch estimates aggregate share repurchases of $350 million
through 2028;
- Annual SOFR rates are assumed to be 4.3%, 4.0%, 4.0%, and 4.0%
for 2025-2028.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's expectation of EBITDA leverage above 4.5x on a sustained
basis;
- (CFO-Capex)/Debt sustained below 7.5%;
- Operational deterioration such as fewer customer renewals,
revenue decline and margin compression.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Increased market share position, evidenced by significant revenue
and EBITDA growth, coupled with greater diversification across end
market;
- EBITDA Leverage sustained below 3.5x;
- (CFO-Capex)/Debt sustained above 10%.
Liquidity and Debt Structure
Given the strong cash generative profile, Fitch believes
MeridianLink will have solid liquidity over the rating horizon. The
company had $92.7 million of cash on the balance sheet as of Dec.
31, 2024, as well as full availability on its $50 million revolver
due 2026. The company's FCF generation supports liquidity.
MeridianLink's debt structure is comprised of an available $50
million first lien RCF due 2026 and $472.7 million remaining on the
first lien term loan due 2028.
Issuer Profile
MeridianLink, Inc., (NYSE: MLNK) is a publicly traded company
providing software solutions for banks, credit unions, mortgage
lenders, specialty lending providers, and consumer reporting
agencies in the U.S. As of March 6, 2025, Thoma Bravo owned 37.8%
of the company.
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
MeridianLink, Inc. has an ESG Relevance Score of '4' for Financial
Transparency due to disclosure of a material weakness identified in
the company's internal control over financial reporting for the
fiscal year ended December 31, 2023, 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.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
MeridianLink, Inc. LT IDR BB- Affirmed BB-
senior secured LT BB+ Affirmed RR1 BB+
ML California Sub, Inc. LT IDR BB- Affirmed BB-
senior secured LT BB+ Affirmed RR1 BB+
MINI MANIA: Amends Plan to Include Pay Pal Secured Claims
---------------------------------------------------------
Mini Mania, Inc., submitted a First Amended Disclosure Statement
describing First Amended Chapter 11 Plan dated March 3, 2025.
This is a reorganizing plan under which the Debtor will make
payments paying creditors over time.
Class 1 consists of the Secured Claim of the Bank of Bank of
America. Based on a secured claim of $194,413.46. Payments include
interest amortization at 8.5% and begin in month 3 @ $2100/month
thru month 24 of the plan. Payments increase in month 25 to
$3,500/month thru month 60. A balloon payment of $87,749.81
(estimated) is due at month 60. Interest at 8.5%. Total principal
and interest paid during the plan is $261,966.
Class 2 consists of the Secured Claim of Pay Pal Business Loan
through WebBank PayPal loaned $79,588.67 to the Debtor. PayPal's
claim is based on an arbitration award of $106,240.82 as of April
4, 2024, plus costs and interest. Based on a total claim of which
the secured portion is $6,366.54. The secured portion was derived
from total "going concern" value of petition assets in the amount
of $200,780. This amount is reduced by the $194,413.46 Bank of
America claim in first position, leaving security of $6,366.54 for
this claim in second position. Payments include interest
amortization at 6% and begin in month 3 @ $109/month with an
additional $8.46 paid in month 72. Total principal and interest
paid is $7,638.46 and the claim is paid in full after month 72 of
the plan.
Like in the prior iteration of the Plan, the unsecured claims of
$1,344,491.02 are paid at 15% over a 6-year period. Payments begin
in month 7, and through year 2 are $1,222/mo. In year 3, payments
are $2,750/mo. In year 4, payments are $3,056/mo. In years 5-6
payments are $4,583/mo. Total unsecured payments during the plan
equal $201,673.65.
The percentage stated is only an estimate. It is not a guaranty of
a %. Payments to class members may be higher or lower than
anticipated. Claims may be disallowed that would raise the % paid.
The percentage actually paid may vary depending on any rejection
claims or claims of putatively secured creditors who actually are
unsecured or under-secured. Also claims may be amended to assert
higher or lower claim amounts. Any failure to pay the stated % to
class members shall not constitute a default.
The Plan will be funded by the Debtor's business operation. The
Debtor anticipates having monies of $45,000 on hand at the Plan's
Effective Date from ongoing operations. No assets will be sold to
fund the Plan.
A full-text copy of the First Amended Disclosure Statement dated
March 3, 2025 is available at https://urlcurt.com/u?l=AzIBfb from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Steven R. Fox, Esq.
The Fox Law Corporation, Inc.
17835 Ventura Blvd., Suite 306
Encino, CA 91316
Tel: (818) 774-3545
Fax: (818) 774-3707
Email: srfox@foxlaw.com
About Mini Mania, Inc.
Mini Mania Inc., d/b/a Sprintboostersales.com, owns and operates
automotive parts, accessories, and tire stores. On the Web:
https://minimania.com/
Mini Mania Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Cal. Case No. 24-22456) on June 4,
2024. In the petition filed by Jonathan Harvey, as president, the
Debtor reports total assets of $1,155,121 and total liabilities of
$3,312,513.
The Honorable Bankruptcy Judge Fredrick E Clement oversees the
case.
The Debtor is represented by Steven R. Fox, Esq., at The FoxLaw
Corporation, Inc.
MISS BRENDA: Seeks Chapter 11 Bankruptcy in Alaska
--------------------------------------------------
On March 19, 2025, Miss Brenda LLC filed Chapter 11 protection in
the U.S. Bankruptcy Court for the District of Alaska. According to
court filing, the Debtor reports $842,546 in debt owed to 1 and
49 creditors. The petition states funds will be available to
unsecured creditors.
About Miss Brenda LLC
Miss Brenda LLC 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.
Miss Brenda LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Alaska Case No. 25-00036) on March 19,
2025. In its petition, the Debtor reports total assets of
$1,572,000 and total Liabilities of $842,546.
The Debtor is represented by:
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
MOSAIC SWNG: Gets Extension to Access Cash Collateral
-----------------------------------------------------
Mosaic SWNG, LLC received third interim approval from the U.S.
Bankruptcy Court for the Southern District of Texas to use its
secured lender's cash collateral.
The third interim order signed by Judge Christopher Lopez
authorized the company to use the cash collateral of Fannie Mae to
pay the expenses set forth in its budget, with a 10% variance
allowed.
The lender's cash collateral consists of rents and accounts
receivable generated from Mosaic's assets, including a 504-unit
multifamily residential real property located in Pasadena, Texas.
As protection, Fannie Mae was granted post-petition replacement
liens on all property of the company, whether acquired before or
after the petition date.
To the extent the replacement liens are insufficient to provide
protection against the diminution, if any, in value of the lender's
interest in the collateral, Fannie Mae will be granted a
superpriority claim.
Mosaic SWNG was ordered to remit to the secured lender a cash
payment equal to the amount by which its remaining cash balance at
the end of the prior calendar month exceeded $80,000.
A final hearing is scheduled for April 11.
About Mosaic SWNG LLC
Mosaic SWNG LLC, doing business as Mosaic Apartments, was
established in October 2021 with the exclusive purpose of acquiring
and owning the 504-unit multifamily residential property known as
"Mosaic Apartments." The apartment complex, built in 1981, is
located at 4025 Burke Road, Pasadena, Texas, in Harris County.
Mosaic SWNG sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Texas Case No. 25-90010) on January 30, 2025,
listing between $50 million and $100 million in both assets and
liabilities.
Judge Christopher M. Lopez handles the case.
The Debtor is represented by:
Melissa A. Haselden, Esq.
Haselden Farrow, PLLC
708 Main Street, 10th Floor
Houston, TX 77002
Tel: 832-819-1149
Email: MHaselden@HaseldenFarrow.com
NAOTA HASHIMOTO: Seeks Chapter 11 Bankruptcy in Nevada
------------------------------------------------------
On March 20, 2025, Naota Hashimoto LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the District of Nevada. According
to court filing, the Debtor reports $1,212,533 in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
About Naota Hashimoto LLC
Naota Hashimoto LLC is a single-asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B). It holds an equitable
interest in the property at 395 E. Wigwam Ave., valued at $1.54
million.
Naota Hashimoto LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev.Case No. 25-11511) on March 1,
2025. In its petition, the Debtor reports total assets of
$1,535,000 and total liabilities of $1,212,533.
The Debtor is represented by:
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
Email: autumn@davidwinterton.com
NITRO FLUIDS: Plan Exclusivity Period Extended to June 9
--------------------------------------------------------
Judge Christopher Lopez of the U.S. Bankruptcy Court for the
Southern District of Texas extended Nitro Fluids, LLC, and its
affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to June 9 and August 11, 2025,
respectively.
As shared by Troubled Company Reporter, the Debtors explain that
additional time will enable the Debtors to continue their
substantial negotiations with the key stakeholders of the Debtors'
estates regarding the reorganization process and implementation of
an alternate strategy. The complexity of these Chapter 11 Cases is
further revealed upon an examination of the sophisticated sale
procedures, the sophisticated professionals assisting the Debtors
in such sale process, and the complexity of the efforts to
reorganize.
Furthermore, the Debtors' purpose in seeking another extension of
the Exclusivity Periods is a good-faith effort to continue the
reorganization efforts they have initiated without the distraction
and costs of a competing plan process which would be a distraction
and 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.
The Debtors claim that they have made significant, good faith
progress in negotiating with creditors and addressing unresolved
contingencies. The Debtors have not yet filed a proposed Chapter 11
plan because the sale and marketing process just recently concluded
which is a gating item to determining potential plan treatment of
various classes of claims against the Debtors.
Separately, the Debtors have not yet filed a proposed Chapter 11
plan because of the shifting economic landscape affecting the
demand for Straitline's services and affecting the broader oil and
gas market. The Debtors believe that if the Court further extends
the Exclusivity Period, it will give the Debtors time to conclude
discussions with constituencies on alternate strategies for the
Debtors to seek confirmation of a feasible Chapter 11 plan.
Counsel for the Debtors:
BONDS ELLIS EPPICH SCHAFER JONES LLP
Joshua N. Eppich, Esq.
Eric T. Haitz, Esq.
420 Throckmorton Street, Suite 1000
Fort Worth, Texas 76102
(817) 405-6900 telephone
(817) 405-6902 facsimile
Email: joshua@bondsellis.com
Email: eric.haitz@bondsellis.com
- and -
Ken Green, Esq.
402 Heights Blvd.
Houston, Texas 77007
(713) 335-4990 telephone
(713) 335-4991 facsimile
Email: ken.green@bondsellis.com
About Nitro Fluids LLC
Nitro Fluids, LLC, filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No.
24-60018) on May 15, 2024, listing $50 million to $100 million in
both assets and liabilities. The petition was signed by Brad Walker
as chief restructuring officer.
Judge Christopher M. Lopez presides over the case.
Eric Thomas Haitz, Esq., at Bonds Ellis Eppich Schafer Jones LLP,
is the Debtor's counsel.
ON SEMICONDUCTOR: S&P Alters Outlook to Stable, Affirms 'BB+' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on ON Semiconductor Corp.
(onsemi) to stable from positive and affirmed its 'BB+' issuer
credit and 'BB' issue-level ratings on its senior unsecured notes.
S&P said, "The stable outlook reflects our expectation of an
increase in FOCF in 2025, but that a prolonged demand downturn
could lead to a revenue decline in the midteens percent area and
EBITDA margins declining to just above 30%. While leverage could
remain well below 1x, we believe the company’s financial policy
could allow for leverage to increase above 2x for strategic
acquisitions.
"We now expect EBITDA margins to fall to just above 30% in 2025 due
to a continued weak demand environment. We previously assumed
demand stabilization and a return to modest revenue growth of 2%-4%
in 2025, believing strength in the Chinese electric vehicle (EV)
market and image sensor product group would offset weaknesses in
other parts of the business. However, with the company guiding to a
sequential first quarter revenue decline of up to around 20%, it
seems more likely now that global macroeconomic and policy
uncertainties could lead to prolonged weak demand in the automotive
and industrial end-markets. Furthermore, onsemi has noted likely
declines in noncore product revenues ($350 million-$400 million
annually) due to significant price competition. Given our revised
revenue assumption of about $5.9 billion this year, we now expect
EBITDA margins to decrease by six to seven percentage points to
about 31%, reflecting fixed cost absorption and lower manufacturing
utilization rates.
"At the same time, the company has been reducing its cost base and
manufacturing capacity. It recently announced a new plan to reduce
headcount to generate $105 million-$115 million of savings, which
we expect to be largely reflected in next year’s results. We
believe the company's structural actions since 2020 has helped it
focus on higher-growth and higher-margin products, and it remains
well positioned to raise EBITDA margins back above 40% when the
market eventually recovers. If the company can return to such high
levels of profitability while maintaining strong FOCF and
above-market revenue growth through market share gains in core
product areas, we could view the business more favorably than
'BB+'-rated peers. Our current base case assumes demand may start
to stabilize by the end of 2025. However, we are less certain
around the timing and nature of a recovery in the current
environment.
"Although strong FOCF should support continued modest leverage, we
believe onsemi’s financial policy could take leverage above 2x.
Despite an expected EBITDA decline of about 30%, we believe onsemi
could generate greater reported FOCF of $1.4 billion-$1.6 billion
this year. This would be driven by lower capital expenditures
(capex) and expected net working capital inflows from inventory
reductions. As a result, even with potentially higher share
repurchases, we believe leverage should remain well below 1x
excluding potential acquisition activity. However, we note that the
rejected bid for Allegro MicroSystems announced on March 5 would
have caused pro forma leverage to likely stay above 2x by the end
of 2026.
"The stable outlook reflects our expectation of an increase in FOCF
in 2025 helped by reduced capital intensity and inventory levels,
and that leverage will remain well below 1x. At the same time, we
believe a prolonged demand downturn will now lead to a revenue
decline in the midteens percent area and EBITDA margins declining
to just above 30% despite ongoing cost control efforts. We also
believe the company’s financial policy could allow for leverage
to rise above 2x for strategic acquisitions."
S&P would lower its rating if:
-- onsemi experiences significantly weaker-than-expected revenues
and operating performance. This could be due to operational
mishaps, increasing competitive pressures, or a prolonged customer
inventory correction; and
-- Management adopts a more aggressive financial policy, including
large-scale share repurchases and debt-funded acquisitions, such
that S&P believes leverage could exceed 3x at the bottom of the
demand cycle.
S&P could raise its rating if the company:
-- Returns to organic revenue growth while maintaining EBITDA
margins of well above 35% and improving FOCF generation; and
-- Improves its competitive standing, characterized by market share
gains, technology leadership, and customer design wins.
If the above are not met, S&P could raise the rating if it believes
the company would maintain a financial policy that supports S&P
Global Ratings-adjusted leverage below 2x through a cyclical
downturn.
PHCV4 HOMES: Gets OK to Use Cash Collateral
-------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Alabama,
Southern Division, issued a consent order allowing PHCV4 Homes, LLC
and its affiliates to use cash collateral.
The consent order signed by Judge Tamara Mitchell authorized the
companies to use cash collateral to pay their expenses in
accordance with their budget.
The order resolved an objection from CoreVest American Finance
Lender, LLC, which consented to the use of its cash collateral
following an agreement with the companies.
As part of that agreement, the companies will provide protection to
the lender in the form of replacement and rollover liens on their
assets.
CoreVest has valid, senior-priority claims secured by assets of the
companies that have been approved for sale by the bankruptcy court.
All proceeds of CoreVest's collateral, including rents and sale
proceeds constitute the lender's cash collateral.
About PHCV4 Homes LLC
PHCV4 Homes, LLC operates in the residential building construction
industry.
PHCV4 Homes filed Chapter 11 petition (Bankr. N.D. Ala. Case No.
24-02751) on September 10, 2024, listing between $10 million and
$50 million in both assets and liabilities. Misty M. Glass, manager
of PHCV4 Homes, signed the petition.
Judge Tamara O. Mitchell presides over the case.
The Debtor is represented by:
Frederick Mott Garfield, Esq.
Spain & Gillon, LLC
Tel: 205-581-6259
Email: fgarfield@spain-gillon.com
PILGRIM'S PRIDE: Moody's Affirms 'Ba2' CFR, Outlook Stable
----------------------------------------------------------
Moody's Ratings affirmed Pilgrim's Pride Corporation's
("Pilgrim's") Ba2 Corporate Family Rating, Ba2-PD Probability of
Default Rating, Ba2 senior unsecured notes rating, and (P)Ba2
senior unsecured shelf rating. The speculative grade liquidity
rating is unchanged at SGL-1. The outlook is stable.
The affirmation of Pilgrim's ratings with a stable outlook follow
the company's announcement of shareholder distributions and a step
up in capital expenditures for fiscal 2025 at its investor day. The
company plans to issue a $1.5 billion special dividend to
shareholders. The special dividend is credit negative because it
will reduce the company's sizable cash balance. The incremental
capital spending in fiscal 2025 will also consume cash and involves
investment risk. However, Moody's affirmed the ratings because
Pilgrim's Pride is funding the distribution from its sizable $2
billion cash balance and not with debt, and will maintain very good
liquidity. In addition, Moody's project free cash flow will remain
comfortably positive in fiscal 2025 despite the increase in capital
spending and an anticipated reduction in earnings as the current
strong poultry market conditions moderate.
The SGL-1 rating reflects that Pilgrim's Pride will continue to
have very good liquidity following the special dividend. As of
December 29, 2024, the company had roughly $3 billion of liquidity
including $2 billion in cash that will still be meaningful at $500
million pro forma for the dividend. In addition, as of December 29,
2024, Pilgrim had $826 million of availability on a $850 million
senior unsecured revolving credit facility that expires in October
2028, $189 million equivalent of availability on a unsecured
revolving credit facility expiring June 24, 2027 through its Moy
Park subsidiary, and $55 million of availability through a MXP 1.1
billion ($54.6 million) credit facility expiring August 15, 2026.
Pilgrim's Pride also announced plans to spend an incremental $350
million in growth capital expenditures in fiscal 2025, above its
normal $400 million in maintenance capital expenditures. The
additional capital expenditures will be used to add prepared foods
and small bird capacity, convert a big bird plant to case ready,
and expand the company's protein conversion capacity. These
investments are focused on driving growth, enhancing margins, and
reducing volatility. Moody's projects the company will generate
free cash flow of roughly $650 million in fiscal 2025 (excluding
the special dividend) and approximately $400 million in fiscal 2026
after capital expenditures of approximately $750 million and $800
million in each year, respectively.
RATINGS RATIONALE
Pilgrim's Pride Corporation's Ba2 CFR is supported by its position
among the world's largest chicken processors, a growing packaged
foods business and very good liquidity. The company's operating
strategy is focused on maximizing profitability and earnings
stability by maintaining operational excellence, improving the
diversity of the product portfolio and focusing on key customers.
These focused efforts allow the company to at least partially
offset sector headwinds caused by external factors such as grain
prices, biological risks, trade restrictions and government
policies that are largely out of its control.
These strengths are balanced against the company's focus in the
cyclical chicken processing industry, which is characterized by
volatile earnings, modest profit margins, and high operating
leverage. The inherent earnings, financial leverage and free cash
flow volatility requires very good liquidity to manage through weak
earnings and cash flow periods. At the top of the cycle, Moody's
expects financial leverage to be very modest relative to comparably
rated companies. Conversely, at the bottom of the cycle, the
company can often have financial leverage that is well outside
Moody's central expectations for the rating for a limited period of
time. Pilgrim's credit metrics continue to improve along with a
recovery in the poultry cycle with debt-to-EBITDA leverage of 1.6x
as of December 2024 at the low end of the range Moody's anticipates
for the rating. Moody's anticipates debt-to-EBITDA leverage will
increase to around 2x by 2026 as the poultry cycle moderates. The
financial policy of maintaining good access to cash and committed
external sources of liquidity helps the company manage through the
earnings volatility.
Moody's evaluates Pilgrim's credit profile on a stand-alone basis
because the debt is not guaranteed by its 80%-shareholder JBS S.A.
Thus, the ratings are not directly affected by the credit profile
of JBS. However, the strategic importance of Pilgrim's to JBS, as
it provides protein and geographic diversification, and potentially
earnings stability, is a positive credit factor because Pilgrim's
does not pay a recurring dividend, at least a portion of earnings
are being reinvested in Pilgrim's growth and there is likely
incentive for JBS to support Pilgrim's through temporary cyclical
slowdowns if necessary.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects a fairly wide range of potential
earnings performance that is typical in the cyclical US chicken
processing industry balanced against Pilgrim's very good liquidity.
Moody's anticipates that Pilgrim's will continue to benefit from a
strong poultry cycle and low feed costs, which along with the
company's good cost management will support low leverage, positive
free cash flow and very good liquidity over the next 12 to 18
months.
The ratings could be upgraded if the company enhances earnings
stability through improvements in business and product mix, debt to
EBITDA is sustained below 2.0x, there is consistent improvement in
the EBITDA margin, the company generates consistent and comfortably
positive free cash flow, and liquidity sources (cash plus unused
revolver commitment availability) are maintained consistently above
$1 billion.
The ratings could be downgraded if debt/EBITDA is sustained above
3.0x. Other events that could contribute to a downgrade include a
major leveraged acquisition or share buyback, deteriorating
industry conditions that lead to prolonged negative free cash flow,
or deteriorating liquidity such as cash plus unused revolver
commitment below $750 million. The ratings could also be downgraded
if legal, governance or other challenges at related entities,
including JBS S.A., negatively affect the risk profile of
Pilgrim's.
The principal methodology used in these ratings was Protein and
Agriculture published in August 2024.
Headquartered in Greeley, Colorado, Pilgrim's Pride Corporation
(NASDAQ: PPC) is the second largest chicken processor in the world,
with operations in the United States, U.K., European Union, Mexico
and Puerto Rico. The company produces, processes, markets and
distributes fresh, frozen and value-added chicken products to
foodservice customers, distributors and retail operators worldwide.
Pilgrim's also is a leading integrated prepared pork supplier in
Europe.
For the last 12-month period ended December 29, 2024, Pilgrim's
revenues totaled $17.9 billion. Pilgrim's Pride is controlled by
São Paulo, Brazil based JBS S.A. (Baa3 stable), the largest
processor of animal protein in the world. As of December 29, 2024,
JBS S.A. owns in excess of 80% of Pilgrim's outstanding common
stock.
PLANO SMILE: Gets Interim OK to Use Cash Collateral
---------------------------------------------------
Plano Smile Studio, P.A. received interim approval from the U.S.
Bankruptcy Court for the Eastern District of Texas, Sherman
Division, to use cash collateral to fund the operation of its
business.
The interim order authorized Plano Smile Studio to use cash
collateral from March 14 until the occurrence of an event of
default such as the conversion of its Chapter 11 case to one under
Chapter 7; removal of Plano Smile Studio as debtor-in-possession;
or the use of cash collateral for purposes not authorized under the
interim order.
The secured lenders, including T Bank, First Citizens Bank, BHG
Financial, and the US Small Business Administration, will receive
replacement liens on post-petition cash and accounts receivable to
secure any diminution in the value of their collateral.
SBA has requested monthly payments of $1,000 to protect its
collateral from any diminution of value. Because the SBA
indebtedness is allegedly secured by a fourth priority lien on the
cash collateral, a determination of whether SBA is entitled to
"adequate protection" payments will be made by the court at the
final hearing.
About Plano Smile Studio
Plano Smile Studio, P.A. is a dental practice located in Plano,
Texas, specializing in both general and cosmetic dentistry. Led by
Dr. John M. Hucklebridge, the studio offers a wide range of
services including dental implants, smile makeovers, Invisalign,
teeth whitening, veneers, and sedation dentistry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tex. Case No. 25-40633) on March 6,
2025. In the petition signed by John M. Hucklebridge, member, the
Debtor disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Judge Brenda T Rhoades oversees the case.
The Debtor is Represented By:
Brandon John Tittle, Esq.
Tittle Law Group, PLLC
Tel: 972-213-2316
Email: btittle@tittlelawgroup.com
PLENTY UNLIMITED: Files for Chapter 11 to Restructure Debt
----------------------------------------------------------
Plenty Unlimited Inc., an innovative agricultural technology
company with a unique indoor vertical farming platform, announced
March 23, 2025, that it has filed voluntary petitions under Chapter
11 of the Bankruptcy Code in the United States Bankruptcy Court for
the Southern District of Texas in accordance with its
Board-approved plan to restructure its liabilities, streamline
operations and focus its go-forward operations.
The Company will continue to operate its Richmond, Va., vertical
strawberry farm and Laramie, Wyo., plant science research and
development (R&D) facility throughout the restructuring process.
The Company has also received a commitment for debtor-in-possession
(DIP) financing of $20.7 million. Plenty has filed a motion
seeking approval of the DIP financing and, upon approval, the DIP
financing is expected to provide Plenty with the necessary
liquidity to support its operations throughout the planned
process.
"Plenty's advanced technology is transforming indoor farming,
removing the unpredictability of Mother Nature and making it
possible to create a stable supply of fresh produce with
peak-season flavor year-round almost anywhere in the world," said
Dan Malech, Plenty's Interim CEO. "However, our Company is not
immune from larger market dynamics and the fundraising challenges
facing our industry. After evaluating all of our strategic
alternatives, we have determined that pursuing this restructuring
process is in the best interests of all of the Company's
stakeholders."
Mr. Malech continued, "We are fortunate to have stakeholders who
support and believe in our mission to make fresh food accessible to
everyone, everywhere. The restructuring will position us to
continue working toward that mission by expanding our production of
premium strawberries with industry-leading partners and filling a
supply gap in the market to meet consumer demand for locally grown,
high-quality strawberries year-round."
Plenty also has filed a number of customary motions seeking
authorization to support its operations during the court-supervised
process, including authority to pay wages and provide health and
other employee benefits.
Additional information regarding the process can be found at
https://cases.stretto.com/PlentyUnlimited, a Website administered
by Plenty's claims agent, Stretto, Inc. Information is also
available by calling 855-994-4202(Toll-Free) and 847-610-7823
(International).
Deal With Plan Sponsors
Daniel Malech, the Interim Chief Executive Officer, explains that
in the last three years, the investment markets have constricted
and the Debtors' access to capital has been strained. During this
time, the Debtors explored multiple paths to attract additional
investment or seek other strategic alternatives.
At the same time and given the high-cost structure inherent in any
infrastructure heavy business, the Debtors made the difficult
decision to reduce their workforce, pause construction of
additional growing spaces at the Virginia Farm, and cease
operations at their Compton, Calif. facility. In addition, due to
the Debtors' inability to raise capital, certain costs related to
the operations and build out of both facilities remain outstanding
and various claims have been asserted against the Debtors by
various vendors, including pursuant to applicable Mechanic's and
materialmen's lien statutes.
Facing the imminent possibility of a cessation of operations, the
Debtors were able to secure additional financing from One Madison
Group - Plenty II, LLC and SVF II Pacific (DE) LLC -- Plan Sponsors
-- who provided approximately $8.675 million of bridge financing to
the Debtors to explore and prepare for a potential recapitalization
or restructuring transaction.
During the weeks leading up to the Petition Date, the Debtors
engaged in arm's-length and good faith negotiations with the Plan
Sponsors to finalize the terms of a transaction. In addition, the
Debtors engaged with certain of their Virginia Farm vendors in an
effort to secure their support for the continued construction of
the Virginia Farm while managing down the Debtors' outstanding
liabilities. Following robust conversations with both the Plan
Sponsors and these Virginia Farm vendors, the Debtors ultimately
determined that a chapter 11 restructuring and recapitalization
transaction anchored by: additional capital to be provided by the
Plan Sponsors (who were, and presently are, the only source of
additional capital available to the Debtors); and concessions and
support from the Virginia Farm vendors, would provide the best
potential outcome for all stakeholders.
To be clear, the alternative to these Chapter 11 Cases was, and
continues to be, an immediate shut down of the Company and the
Virginia Farm, to the detriment of all of Plenty's stakeholders.
Accordingly, the Debtors launched Chapter 11 Cases to implement the
terms of (a) the recapitalization transaction contemplated by the
proposed chapter 11 plan, providing for a new capital infusion to
support go forward operations at the Virginia Farm and Wyoming R&D
Facility, or alternatively (b) the sale or disposition of some or
all of the Debtors' assets or equity interests (collectively, the
"Restructuring Transactions").
Sale Option
While the Debtors intend to seek confirmation of their proposed
chapter 11 plan, they have limited liquidity to support the
projected costs of these Chapter 11 Cases. Accordingly, in the
event the Debtors determine that an asset sale would better
maximize value, including because sufficient support cannot be
garnered for the proposed chapter 11 plan, the Debtors will instead
seek approval of such sale instead, and so are dual tracking (i) a
sale and marketing process for all or substantially of their
assets, along with (ii) pursuit of confirmation of their proposed
plan (the "Plan/Sale Process").
To support implementation of the Restructuring Transactions and
launch the Plan/Sale Process, in addition to the standard slate of
operational First Day Motions, the Debtors have filed
contemporaneously herewith (a) a request for approval of
debtor-in-possession financing (the "DIP Facility") being provided
by the Plan Sponsors (in such capacity, the "DIP Lenders"), (b) a
motion to establish bidding procedures to govern a sale process
under section 363 of the Bankruptcy Code (the "Bid Procedures
Motion"), pursuant to which the Plan Sponsors will serve as a
stalking horse bidder and the Debtors will seek higher or otherwise
better bids for a sale of some or all of the Debtors' assets, and
(c) a motion to approve solicitation procedures with respect to the
Debtors' proposed Chapter 11 plan (the "Plan") and related
disclosure statement, which will provide for a recapitalization of
the Debtors through an equity rights offering available to all
holders of claims against the Debtors and holders of the Debtors'
preferred equity.
Importantly, the Plan/Sale Process maximizes the prospect that the
majority of the Debtors' employees will retain their jobs, that the
Debtors' innovative R&D efforts will continue, and that the
build-out of the Debtors' state of the art facility in Virginia
will be completed. But the Debtors have limited funding to achieve
these goals, and therefore intend to move quickly to build a
consensus with their creditor constituents that would enable
consummation of a Restructuring Transaction. As set forth more
fully in the DIP Motion, the Debtors are subject to certain
milestones that are designed to ensure the Chapter 11 Cases
maximize value while providing an efficient path to confirmation of
a plan of reorganization or approval of a value-maximizing sale.
In particular, the Debtors' access to additional capital under the
DIP Facility is subject to reaching agreements with a satisfactory
number of vendors and contractual counterparties with respect to
resolution of outstanding obligations or disputes satisfactory to
the DIP Lenders.
Accordingly, the Debtors intend to seek immediate conditional
approval of the Disclosure Statement and confirmation of the Plan,
or in the alternative approval of a Sale, within 60 days of the
Petition Date.
About Plenty
Plenty is rewriting the rules of agriculture through its technology
platform that can grow fresh produce almost anywhere in the world,
year-round, with peak-season quality and up to 350x more yield per
acre than conventional farms. Plenty farms are the world's
highest-efficiency system for converting electricity into fresh
fruits and vegetables. Plenty's proprietary approach is designed to
preserve the world's natural resources, make fresh produce
available to all communities and create resilience in the Company's
food systems against weather, location, pests and climate impacts.
Plenty operates the world's largest vertical farming research
center in Laramie, Wyo., and the world's most advanced indoor farm
near Richmond, Va. On the Web: http://www.plenty.ag/
On March 23, 2025, Plenty Texas Unlimited LLC and six affiliated
debtors filed voluntary petitions for relief under Chapter 11 of
the United States Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
25-90105) before the Honorable Christopher M. Lopez.
Sidley Austin LLP and Wilson Sonsini Goodrich & Rosati are serving
as the Company's legal counsel. Jefferies LLC and Uzzi & Lall LLC
are serving as financial advisors. Stretto is the claims agent.
Davis Polk & Wardwell LLP and Sullivan and Cromwell LLP are
representing certain providers of the DIP financing.
PLENTY UNLIMITED: Seeks Chapter 11 Bankruptcy in Texas
------------------------------------------------------
Jonathan Randles of Bloomberg News reports that Plenty Unlimited
Inc., a vertical farming company backed by Jeff Bezos, SoftBank
Group Corp., and Walmart, has filed for bankruptcy with a
lender-supported plan to either secure new funding or sell its
business.
On March 24, 2025, the company sought court protection in Texas,
reporting assets and liabilities exceeding $100 million in its
Chapter 11 filing. The bankruptcy process includes an agreement to
explore a potential asset sale or an alternative restructuring to
raise additional capital.
About Plenty Unlimited Inc.
Plenty Unlimited Inc. is an innovative indoor vertical farming
company that grows pesticide-free produce in controlled
environment. The company operates a research facility in Laramie,
Wyoming, and recently opened a new strawberry farm in Richmond,
Virginia, capable of producing over 4 million pounds of
strawberries annually. Their proprietary technology enables
year-round growing of various crops using less land and water than
conventional farming methods, with products including Crispy
Lettuce, Baby Kale, Baby Arugula, and Spring Mix currently
available in retail stores.
Plenty Unlimited Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90106) on March 24,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtor is represented by:
Duston K. McFaul, Esq.
Sidley Austin LLP
1000 Louisiana St. Suite 6000
Houston, TX 77002
Phone: 713-495-4500
Fax: 713-495-7799
PREPAID WIRELESS: Seeks Continued Cash Collateral Access
--------------------------------------------------------
Prepaid Wireless Group, LLC asked the U.S. Bankruptcy Court for the
District of Maryland, Greenbelt Division, for authority to use cash
collateral.
The Debtor requires the use of cash collateral to fund ongoing
business operations, as well as the fees and expenses of
administering the Chapter 11 case for the period from April 1 to
July 31.
The current authorization to use cash collateral expires on March
31. The extension is crucial for the Debtor to manage its business,
fund the Chapter 11 case, and protect assets while working toward
the confirmation of a reorganization plan that will pay creditors
in full. The Debtor requests access to $10.843 million of cash for
the interim period before the final order is entered.
The use of cash collateral will be governed by a budget, with
protections for T-Mobile USA, Inc., which holds a first-priority
security interest in the Debtor's cash from its accounts
receivable. Adequate protection will be provided to T-Mobile
through superpriority claims and a replacement lien to protect its
interest in the event of any diminishment in the value of its
collateral. The Debtor also seeks to maintain a segregated account
for the payment of professional fees.
A copy of the motion is available at https://urlcurt.com/u?l=1OpExC
from PacerMonitor.com.
About Prepaid Wireless Group
Prepaid Wireless Group, LLC is a provider of wireless
telecommunications services in Rockville, Md.
Prepaid Wireless Group filed Chapter 11 petition (Bankr. D. Md.
Case No. 24-18852) on October 21, 2024, listing $10 million to $50
million in both assets and liabilities. Paul Greene, chief
executive officer of Prepaid Wireless Group, signed the petition.
Judge Maria Ellena Chavez-Ruark oversees the case.
The Debtor is represented by Irving Walker, Esq., at Cole Schotz,
P.C.
T-Mobile USA, Inc., as creditor, is represented by:
David W.T. Daniels, Esq.
Perkins Coie, LLP
700 13th St NW #600
Washington, DC 20005
Tel: (202) 654-6364
Email: DDaniels@perkinscoie.com
PREST PROPERTIES: Case Summary & Four Unsecured Creditors
---------------------------------------------------------
Debtor: Prest Properties LLC
20 E Sunrise Hwy
Valley Stream, NY 11581
Business Description: Prest Properties owns an 88-bed skilled
nursing facility located at 308 W Emma
Street, Union Gap, WA 98903, with an
estimated value of $8 million.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-71125
Judge: Hon. Louis A Scarcella
Debtor's Counsel: Avrum J. Rosen, Esq.
LAW OFFICES OF AVRUN J. ROSEN, PLLC
38 New St
Huntington, NY 11743-3327
Tel: 631-423-8527
Fax: 631-423-4536
E-mail: arosen@ajrlawny.com
Total Assets: $8,000,000
Total Liabilities: $6,465,000
The petition was signed by Samuel Goldner as manager.
A full-text copy of the petition, which includes a list of the
Debtor's four unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/BQQBNCQ/Prest_Properties_LLC__nyebke-25-71125__0001.0.pdf?mcid=tGE4TAMA
PROSPECT MEDICAL: Secures $13MM Funding Increase During Sale Talks
------------------------------------------------------------------
Emlyn Cameron of Law360 Bankruptcy Authority reports that on March
24, 2025, counsel for hospital operator Prospect Medical informed a
Texas bankruptcy judge that the debtor had secured a $13 million
financing deal, supported by a nonprofit, to sustain its
Pennsylvania hospital operations amid ongoing negotiations.
About Prospect Medical Holdings
Prospect Medical Holdings owns Roger Williams Medical Center, Our
Lady of Fatima Hospital, and several other healthcare facilities.
Prospect Medical sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80002) on Jan.
11, 2025. In the petition filed by Paul Rundell, as chief
restructuring officer, the Debtor estimated assets and liabilities
between $1 billion and $10 billion each.
Bankruptcy Judge Stacey G. Jernigan handles the case.
The Debtors' General Bankruptcy Counsel is Thomas R. Califano,
Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas,
Texas, and William E. Curtin, Esq., Patrick Venter, Esq., and Anne
G. Wallice, Esq., at Sidley Austin LLP, in New York.
The Debtors' Financial Advisor is ALVAREZ & MARSAL NORTH AMERICA,
LLC.
The Debtors' Investment Banker is HOULIHAN LIKEY, INC.
The Debtors' Claims, Noticing & Solicitation Agent is OMNI AGENT
SOLUTIONS, INC.
PURE AVIATION: Case Summary & Two Unsecured Creditors
-----------------------------------------------------
Debtor: Pure Aviation, LLC
30 N Gould St
Sheridan, WY 82801-6317
Business Description: Pure Aviation LLC is a privately held
company primarily engaged in real estate
leasing.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 25-30335
Debtor's Counsel: James Jopling, Esq.
JIM K. JOPLING, ATTORNEY AT LAW
521 Texas Avenue
El Paso, TX 79901
Tel: (915) 541-6099
Email: jim@joplinglaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Carlo DiMarco as managing member.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/QHNTRDQ/Pure_Aviation_LLC__txwbke-25-30335__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Two Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. South Star Deed of Trust $5,473,540
2. NGL Transportation LLC $900,000
QVC GROUP: Overhauls Management Team as Part of Expansion Strategy
------------------------------------------------------------------
QVC Group, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that as part of its ongoing
strategy to expand into a live social shopping company, the Company
is undertaking various organizational and strategic changes.
In connection therewith, the Company and Liberty Media Corporation
intend to begin transitioning various general and administrative
services currently provided by Liberty Media to the Company under
the Services Agreement, dated as of September 23, 2011, by and
between Liberty Media and the Company, to the management of the
Company, including legal, tax, accounting, treasury, information
technology, cybersecurity and investor relations support. As part
of that transition, all current officers of the Company, including
Brian J. Wendling, Principal Financial Officer and Chief Accounting
Officer of the Company, will step down from their officer
positions, effective March 31, 2025, and these positions will be
assumed by members of the QVC, Inc. management team, effective as
of April 1, 2025. Liberty Media intends to continue to support the
Company as needed throughout the transition period and the
Company's executive offices will remain at 12300 Liberty Boulevard,
Englewood, CO 80112 for a time.
On March 4, 2025 the board of directors of the Company approved the
changes to the executive officers of the Company, effective as of
April 1, 2025, including the appointment of Bill Wafford as Chief
Financial Officer and Chief Administrative Officer. Gregory B.
Maffei will continue as executive Chairman of the Board, David
Rawlinson II will continue as the President and Chief Executive
Officer of the Company and Renee L. Wilm will continue as Chief
Legal Officer of the Company. Eve DelSoldo has been appointed
Executive Vice President and General Counsel of the Company.
Appointment of Chief Financial Officer
Bill Wafford, age 53, has been appointed Chief Financial Officer
and Chief Administrative Officer of the Company. Mr. Wafford has
been Chief Financial Officer of QVC, Inc. since joining in March
2023, and, since April 2024, has also been Chief Administrative
Officer of QVC, Inc. Mr. Wafford was previously chief financial
officer of Everlane from 2022 until joining QVC, Inc. and, prior to
that, was chief financial officer of JCPenney from 2019 until 2021.
Mr. Wafford is a member of the board of directors and chairman of
the audit committee of Jushi Holdings Inc. There was no increase in
Mr. Wafford’s annual base salary, bonuses or awards in connection
with the appointment to Chief Financial Officer and Chief
Administrative Officer of the Company.
There are no arrangements or understandings between Mr. Wafford and
any other person pursuant to which Mr. Wafford was appointed as
Chief Financial Officer and Chief Administrative Officer and there
are no family relationships between Mr. Wafford and any director or
executive officer of the Company. Mr. Wafford does not have a
direct or indirect material interest in any transaction required to
be disclosed pursuant to Item 404(a) of Regulation S-K.
Designation of Principal Operating Officer
Michael Fitzharris, age 53, has served as President, QVC US since
March 2022 and as Chief Operating Officer of the QVC GroupSM
(formerly Qurate Retail GroupSM) since January 2025, and, effective
April 1, 2025, will be considered the Company’s principal
operating officer. Mr. Fitzharris began his career at QVC in 1997
and rejoined in April 2012, holding various senior executive roles,
including President, HSN from January 2018 through March 2022.
There was no increase in Mr. Fitzharris’ annual base salary,
bonuses or awards in connection with his designation as principal
operating officer of the Company.
There are no arrangements or understandings between Mr. Fitzharris
and any other person pursuant to which Mr. Fitzharris was
designated as principal operating officer and there are no family
relationships between Mr. Fitzharris and any director or executive
officer of the Company. Mr. Fitzharris does not have a direct or
indirect material interest in any transaction required to be
disclosed pursuant to Item 404(a) of Regulation S-K.
About QVC Group
QVC Group, Inc., formerly known as Qurate Retail, Inc. --
https://www.qvcgrp.com/ -- (NASDAQ: QVCGA, QVCGB, QVCGP) is a
Fortune 500 company with six leading retail brands - QVC, HSN,
Ballard Designs, Frontgate, Garnet Hill and Grandin Road
(collectively, "QVC GroupSM"). QVC GroupSM is a live social
shopping company that redefines the shopping experience through
video-driven commerce on every screen, from smartphones and
tablets
to laptops and TVs. QVC Group reaches more than 200 million homes
worldwide via 15 television channels, which are widely available
on
cable/satellite TV, free over-the-air TV, and FAST and other
digital livestreaming TV. The retailer also reaches millions of
customers via its QVC+ and HSN+ streaming experience, Facebook,
Instagram, TikTok, YouTube, Pinterest, websites, mobile apps,
print
catalogs, and in-store destinations. QVC Group, Inc. also holds
various minority interests.
* * *
As reported by TCR on April 22, 2024, S&P Global Ratings revised
its outlook to stable from negative and affirmed all its ratings
on
U.S.-based video commerce and online retailer Qurate Retail Inc.,
including its 'CCC+' Company credit rating. The stable outlook
reflects S&P's expectation that Qurate will maintain sufficient
liquidity over the next 12 months despite its view that its
capital
structure remains unsustainable, as further cost reductions offset
sales weakness and support profit recovery.
RADIX HAWK: Case Summary & Seven Unsecured Creditors
----------------------------------------------------
Debtor: Radix Hawk Holdings, LLC
1110 Highway A1A
Satellite Beach, FL 32937
Business Description: Radix Hawk is a real estate holding company
primarily owning hotel and motel complexes
located at 5859 American Way, Orlando, FL
32819.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-01631
Judge: Hon. Lori V Vaughan
Debtor's Counsel: Craig I. Kelley, Esq.
KELLEY KAPLAN & ELLER, PLLC
1665 Palm Beach Lakes Blvd
The Forum - Suite 1000
West Palm Beach, FL 33401
Tel: 561-491-1200
Email: craig@kelleylawoffice.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $10 million to $50 million
The petition was signed by James Hannon as manager.
A full-text copy of the petition, which includes a list of the
Debtor's seven unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/5TUCTIA/Radix_Hawk_Holdings_LLC__flmbke-25-01631__0001.0.pdf?mcid=tGE4TAMA
RED OAK: Moody's Rates New $334MM Credit Facilities 'Ba3'
---------------------------------------------------------
Moody's Ratings has assigned a Ba3 rating to Red Oak Power, LLC's
(Red Oak) proposed $299 million senior secured term loan B due 2030
and $35 million senior secured revolving credit facility due 2029
(collectively, the new credit facilities). The rating outlook is
stable.
The proposed senior secured term loan B is a $40 million upsizing
to Red Oak's existing $259 million senior secured term loan B
facility (originally $260 million), proceeds from which will be
used to fund a distribution to its sponsors. Moody's intends to
withdraw the Ba3 ratings assigned to Red Oak's existing $259
million senior secured term loan due 2030 (CUS: 75683JAB0) and its
$35 million secured revolving credit facility due 2029 (CUS:
75683JAC8) upon the closing of the new credit facilities.
RATINGS RATIONALE
The Ba3 rating reflects the project's strong operating track
record, the strength of its location in a capacity-constrained
region and a prudent hedging strategy, offset by its exposure to
the wholesale merchant power market, Regional Greenhouse Gas
Initiative (RGGI) emissions costs, single asset risk, and high
financial leverage. Increased leverage relating to the new term
loan facility reduces Red Oak's positioning within the Ba3 rating
category and places additional importance on continued strong
operational performance, particularly given the hedging profile.
Moody's expects Red Oak's credit profile to be supported by growing
power demand across PJM and a strong capacity pricing environment.
Red Oak is located within PJM's EMAAC zone whose capacity pricing
has historically priced at a premium to RTO because of capacity
constraints. The most recent PJM base residual auction for 2025/26
had a clearing price of $270/MW-day, compared with the prevailing
EMAAC zone's capacity price of $55/MW-day for 2024/25.
Challenges facing Red Oak include rising costs for carbon
allowances as auction settlement prices for RGGI continue to trend
upward and have pressured historical cash flow. The most recent
auction determined price was $20.05 per ton (December 2024)
compared to prices in a $5-8.00 per ton range in 2020.
A comprehensive review of all credit ratings for the respective
issuer(s) has been conducted during a rating committee
OUTLOOK
The stable outlook reflects Moody's expectations that Red Oak will
continue to operate without notable operational issues and maintain
its competitive position, enabling the project to pay down the debt
as expected. The outlook also incorporates Moody's expectations of
prudent implementation of Red Oak's hedging strategy.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
FACTORS THAT COULD LEAD TO AN UPGRADE
The rating could be upgraded if its CFO/debt and DSCR were to
exceed 20% and 3.0x, respectively, on a sustained basis.
FACTORS THAT COULD LEAD TO A DOWNGRADE
The rating could be downgraded if its CFO/debt or DSCR were to fall
below 10% and 1.75x, respectively, on a sustained basis. The rating
could also come under pressure if the company's hedge strategy is
not properly implemented, exposing it to incremental costs or more
merchant exposure.
PROFILE
Red Oak Power, LLC owns and operates a 805MW (nameplate) combined
cycle natural gas-fired generation facility, which is located in
Sayreville, New Jersey, within PJM's EMAAC capacity zone. The
equipment includes three Siemens 501FD3 combustion turbines and one
Toshiba steam turbine. The facility commissioned its operations in
September 2002.
The project is owned by North Haven Infrastructure Partners II,
managed by Morgan Stanley Infrastructure Partners.
LIST OF AFFECTED RATINGS
Issuer: Red Oak Power, LLC
Assignments:
Senior Secured Term Loan B, Assigned Ba3
Senior Secured Revolving Credit Facility, Assigned Ba3
Outlook Actions:
Outlook, Remains Stable
The principal methodology used in these ratings was Power
Generation Projects published in June 2023.
RKSR INVESTMENTS: Claims to be Paid From Property Sale Proceeds
---------------------------------------------------------------
RKSR Investments, LLC, filed with the U.S. Bankruptcy Court for the
Western District of Texas a Disclosure Statement describing Plan of
Reorganization dated March 3, 2025.
The Debtor is a Texas limited liability company which owns real
property in Cedar Park, Texas. The Debtor is owned by Dr. Narendra
Punjabi.
The Debtor acquired real property located at 3000 Glacier Pass
Lane, Cedar Park, TX 78613 on September 6, 2023. The property was
operated as a memory care facility until November 15, 2024 when
operations were shut down. The property was appraised by The
Ambrose Group as of October 18, 2024 in the amount of $6,485,000 as
is.
The Debtor acquired its property on September 6, 2023. It was
operated as a memory care facility until November 15, 2024 when
operations were shut down. It is currently a vacant building.
Wallis State Bank posted the property for a foreclosure sale to
occur on December 3, 2024.
The Debtor placed the property on the market for $7.5 million and
then reduced the asking price to $7.0 million. The Debtor has
multiple parties interested in purchasing the property.
The plan proposes to sell the Debtor's real property and distribute
the funds to the parties determined to be entitled to receive such
proceeds.
Class 5 shall consist of the Allowed Claims of Unsecured Creditors.
Upon sale of the Debtor's real property, the Debtor shall pay the
Allowed Unsecured Creditors in full. The allowed unsecured claims
total $29,692.36. Class 5 is impaired.
Class 6 shall consist of the Equity Interests of the Debtor. The
Class 6 Equity Holder shall not receive any distributions until the
Allowed Claims in Classes 1 to 5 have been paid. The Class 6 Equity
Interests shall be retained. Class 6 is impaired.
Feasibility of the Plan and Risk to Creditors measures the
likelihood that creditors will receive the payments promised to
them. The feasibility of the Plan depends on the ability of the
Debtor to sell the real property. The Debtor believes that the
property is in a desirable area and should be able to sell for a
fair price. The Debtor is presently in negotiations with several
prospective purchasers.
Feasibility also depends upon Dr. Punjabi being able to fund the
monthly interest payments required by the plan in the amount of
$41,955.65 plus the one-time payment to a priority creditor of
$2,515.69. If the Debtor requires a full six months to sell the
property, this would require a post-confirmation loan to the Debtor
of $254,249.59.
A full-text copy of the Disclosure Statement dated March 3, 2025 is
available at https://urlcurt.com/u?l=KqktCd from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Stephen Sather, Esq.
Barron & Newburger P.C.
7320 N. Mopac Expressway, Ste. 400
Austin, TX 78731
Telephone: (512) 476-9103
Email: ssather@bn-lawyers.com
About RKSR Investments
RKSR Investments LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
RKSR Investments sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-11528) on Dec. 2,
2024. In the petition filed by Dr. Narendra Punjabi, as manager,
the Debtor estimated assets and liabilities between $1 million and
$10 million each.
Bankruptcy Judge Shad Robinson oversees the case.
The Debtor is represented by Stephen W. Sather, Esq. at BARRON &
NEWBURGER, P.C.
RUNNER BUYER: Moody's Cuts CFR to 'Ca', Outlook Stable
------------------------------------------------------
Moody's Ratings downgraded Runner Buyer, Inc. ("RUGS USA")
corporate family rating to Ca from Caa3, its probability of default
rating to D-PD from Caa3-PD and its senior secured first lien
revolving credit facility and senior secured first lien term loan
ratings to Ca from Caa3. The outlook remains stable.
The downgrade of the PDR to D-PD reflects that RUGS USA did not
make its scheduled interest payments on both it revolving credit
facility and term loan when due or within the stipulated grace
period. Moody's views the missed payments as a default and a
governance consideration. The downgrades of the CFR and senior
secured ratings also reflect continued softening of operating
performance and the resultant weakened recovery prospects. The
company has been negatively impacted by depressed demand due to a
challenged discretionary consumer spending environment and a
sustained drop in home sale activity while having to contend with
higher interest rates. As a consequence, debt/EBITDA is
unsustainably high at about 25.0x and EBITA/interest is very weak
at about 0.3x at September 30, 2024. Free cash flow (FCF) for the
last twelve months ended September 30, 2024 was negative $22
million.
The D-PD rating designation will remain in place until a resolution
of the interest payment default.
RATINGS RATIONALE
RUGS USA Ca CFR is constrained by the company's high debt burden
and sales and earnings weakness which began in 2022 and is
persisting through the current period. RUGS USA's leverage is very
high with Moody's-adjusted debt/EBITDA at about 25.0x and interest
coverage is weak with EBITA/interest of about 0.3x at LTM September
30, 2024. Given the difficult consumer spending environment,
Moody's expects RUGS USA's metrics to be weak over the next 12-18
months. Liquidity is weak with the company's revolver fully drawn
and resultant proceeds of about $40 million being used to plug
operating deficits. Given the unsustainably high leverage and
recent inability to pay interest, Moody's expects a restructuring
of the capital structure in the near-term. In addition, the rating
is limited by RUGS USA's small scale and narrow focus primarily in
the discretionary, cyclical and highly fragmented and competitive
rug market. The credit profile also reflects the financial strategy
risks associated with private equity ownership. Before the weakness
that started in 2022, RUGS USA had demonstrated high growth rates,
with revenue that has almost quadrupled since 2015 driven by both
good execution and increasing online penetration, particularly in
the value rugs market. In addition, Moody's views the company's
value price points supplemented by the higher-end Annie Selke
acquisition in 2023 and the continued secular shift to e-commerce
to be favorable. The company has taken steps to offset the topline
weakness through $45 million of cost-savings executed in 2024. The
credit profile is also supported by the asset-light nature of the
business.
The stable outlook reflects that Moody's believes the current
ratings appropriately reflect the company's expected performance
and estimated recovery rate.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if there is a sustained improvement in
operating performance and liquidity or if the expected recovery
rate improves. Additionally, the probability of default rating
could be upgraded on a successful resolution of the non-payment of
interest outside of bankruptcy.
The ratings could be downgraded if recovery expectations
deteriorate further.
Headquartered in New York, NY, Runner Buyer, Inc. (RUGS USA) is an
e-commerce provider of rugs and home décor products through its
website rugsausa.com, annieselke.com and e-commerce marketplaces.
Revenue for the twelve months ended September 30, 2024 was roughly
$300 million. The company is controlled by Francisco Partners.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
SCANROCK OIL & GAS: Royalty Holders Postpone Ch. 11 Committee Bid
-----------------------------------------------------------------
Vince Sullivan of Law360 Bankruptcy Authority reports that on March
19, 2025, an ad hoc group of royalty interest owners in Scanrock
Oil & Gas Inc.'s Chapter 11 case informed a Texas bankruptcy judge
that they would postpone their request for an official royalty
holder committee following the recent formation of a statutory
creditors committee.
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.
SCIENTIFIC GAMES: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed Scientific Games Holding LP's (SG)
Long-Term Issuer Default Ratings (IDR) at 'B'. Fitch has downgraded
SG's senior secured debt to 'B+' with a Recovery Rating of 'RR3'
from 'BB-'/'RR2', and affirmed its senior unsecured debt at
'B'/'RR4'. The Rating Outlook is Stable.
The downgrade of SG's secured debt reflects a revised enterprise
value (EV)/EBITDA multiple that better reflects the competitiveness
of the gaming industry. The affirmation of SG's IDR reflects its
strong business profile in the instant games sub-segment, with an
about 70% market share, durable cash flows, and established
customer relationships with strong renewal rates. However, these
positives are offset by SG's high EBITDA leverage, which has
remained relatively consistent YoY due to industry softness in the
U.S. from a decline in multi-state jackpot revenue.
The Stable Outlook reflects SG's essential role in the entire
lottery ecosystem, with a defensible market position, and an
improving leverage trajectory.
Key Rating Drivers
Growth Supports Deleveraging: SG's Fitch-defined EBITDA leverage is
expected to reduce marginally to 7.8x in 2024 from 8.1x in the year
earlier, stemming from renegotiated pricing of commodities, new
wins in certain jurisdictions, and an incremental improvement in
labor productivity. Fitch expects EBITDA leverage to moderate to
about 7.2x in 2025 and approach 6.0x-6.5x over the forecast
horizon, as commodity price reductions fully take hold, the rollout
of enhanced service offerings continue, new contract wins support
upside, and the U.S. instant games retail lottery sales slowly
rebound.
SG underperformed its earnings expectations in 2024, partly due to
lower-than-estimated instant tickets and draw-based sales from
industry-wide dampness linked to fewer mega jackpots and delayed
execution on commercial wins, particularly in Ohio. Debt is tied to
the revolver, term loan B (USD and EUR), and unsecured notes. Fitch
does not anticipate any voluntary debt repayments over the medium
term. SG will likely not experience any material impact on its
operations from potential tariffs considering its local-to-local
strategy in its products business.
High, but Manageable Capital Intensity: The lottery business is
capital intensive as license or concessions can require
considerable periodic upfront capex for systems and equipment
installation. Some jurisdictions mandate material, one-time
payments for long-term contracts, which reduce FCF. However, capex
for the instant tickets segment tends to be relatively low. Capex
is expected to increase in 2025 and 2026 due to the deployment of
terminals in Ohio, where it won the gaming system technology
contract in late 2024. This is manageable given SG's strong
operating cash flows.
Capex intensity will be in the high-single digits to low-double
digits range, relatively in line with historical trends, as the
company continues to pursue new opportunities and maintain existing
contracts.
Solid Operating Profile: SG has a full-suite of products, including
instant games, lottery systems, iLottery products and retail
lottery service solutions. It is a leading operator in the global
instant ticket business, with a company-estimated global market
share of about 70%. SG's operating record, long-term contracts with
recurring revenue and robust renewal rates, and longstanding
customer relationships, primarily with governments, are substantial
competitive advantages when bidding on new concessions. The company
is diversified by customers (about 150) and locations (operating in
over 50 countries).
Lottery Exposure a Credit Strength: The lottery segment exhibits
favorable characteristics relative to other gaming, with attractive
long-term industry fundamentals that have been resilient through
various economic dislocations. It has less cash flow volatility,
stable low-to-mid single-digit growth rates, and higher profit
margins while benefiting from iLottery adoption, which appears to
expand the player base. Moreover, the industry has shown positive
spend-per-capita trends, positioning it to withstand higher
leverage than traditional gaming.
Reasonable Concession Payment Risk: SG's exposure to one-time
concession payments is manageable as its ownership percentage in
joint venture (JVs) that pay upfront payments does not exceed 50%.
SG is a part of six JVs, with the latest addition being the Minas
Gerais State Lottery consortium (along with International Game
Technology plc and a local partner) in Brazil starting 2023.
Positively, the JVs pay meaningful recurring distributions to the
owners, which Fitch includes in its leverage calculation, and the
concession or supplier agreement terms tend to be long-dated.
Flexibility to Distributions and Leverage: SG's debt agreements
provide the company and its sponsor, Brookfield Business Partners
L.P., significant flexibility in managing leverage and distributing
cashflows. This flexibility is from the absence of discernible
requirements to meaningfully de-leverage and the leniency with
restricted payments. Sustaining gross EBITDA leverage below 6.5x, a
goal management hopes to achieve over the next few years, in
conjunction with the other rating sensitivities, could be more
consistent with a higher rating, all else being equal.
Peer Analysis
SG's IDR reflects a high leverage profile, strong discretionary FCF
generation, and favorable exposure to global lottery versus slot
suppliers. Its credit profile is weaker than that of International
Game Technology plc's (IGT, BB+/Positive Watch), which is currently
in the middle of making a pure play on its lottery business by
selling its slots and digital businesses. IGT's standalone lottery
company will have strong market penetration (about 90% market share
in Italy and 75% in the U.S.) and a larger scale than SG's.
Similarly, Allwyn International AG (BB-/Positive), the largest
European private lottery operator with a presence in the U.S. since
its acquisition of Camelot LS Group, has a stronger business
profile with an improvement in its scale as well as its business
and product diversification following the start of its UK National
Lottery contract in 2024. EBITDAR leverage is expected to peak in
2025 at 4.7x due to cash outlays for the Italian lottery tender and
the planned acquisition of Novibet, but temper to 3.7x by 2027.
Finally, Intralot S.A. (CCC+), a supplier of integrated gaming
systems and services to state and state-licensed lottery and gaming
organizations, is rated two notches below SG due to the complexity
of its existing capital structure, which leads to high refinancing
risk that limits its access to international debt capital markets.
Its EBITDAR leverage had improved to 3.5x in 2023, from 4.9x in
2022, and is expected to be stable over the near to medium term.
Key Assumptions
- Total Revenue grows in the mid-to-high single digits over the
forecast horizon;
- Segmentally, Instant Games grows by the low- to mid-single digits
as Percentage of Sales (POS) and Price per Unit (PPU) contracts are
steadily converted to the higher-yielding Scientific Games Enhanced
Partnership (SGEP) program, supported by an improvement in retail
sales volume as jackpot levels improve and a price increase in Mega
Millions tickets;
- The Systems and Solutions business grows in the high-single
digits, bolstered by lottery systems, retail solutions and
iLottery, as the company wins more contracts across greenfield
expansion and customer takeaways;
- Fitch-defined EBITDA margin reaches 32% over the rating period
due to improved sales, benefits from costs passed through to
customers, cost reduction in commodities, and other productivity
measures;
- Capex as a percentage of sales is elevated in the low-double
digits in 2025 and 2026 due to the deployment of terminals in Ohio
(potentially split across the two years), followed by a
normalization to high-single digits thereafter;
- FCF margin (before distributions to parent and affiliates)
remains in the mid-to-high single digits. FCF is primarily assumed
to pay dividends. However, FCF margin can remain positive (low- to
mid-single digits range), should annual dividends be managed
prudently;
- Distributions from JVs are consistent with the historical range;
- Gross debt declines marginally, driven by required amortization
payments. Consequently, deleveraging is primarily from EBITDA
growth. Fitch assumes no voluntary prepayments and maintains
revolver utilization under 40% of the committed amount, when SG's
financial covenant triggers;
- No material M&A. Excess cash flow is reinvested in the business
or distributed to shareholders to the extent permissible under debt
covenants;
- Base interest rate assumptions reflect the current SOFR curve.
Recovery Analysis
The recovery analysis assumes that SG would be reorganized as a
going-concern in bankruptcy rather than liquidated. Fitch has
assumed a 10% administrative claim and the $440 million revolver to
be fully drawn at the time of recovery. The current recovery
ratings contemplate nearly $3 billion of secured debt claims. Fitch
forecasts a post-reorganization EV before administrative claims of
roughly $25 billion.
Going-concern EBITDA of about $330 million, unchanged from its
previous review and before distributions from minority investments
(e.g. Lotterie Nazionali S.r.l), assumes the loss of at least two
major lottery contracts and marginal cyclical pressures on consumer
discretionary spending. It also assumes a forward assumption from
the time of distress of mid-single digit growth for the underlying
business given lottery's historically healthy secular growth rates
and SG's customer diversification.
The collateral package consists of only the U.S.-based
subsidiaries, which represent about 70% of total cash flows and
assets. The secured lenders and unsecured noteholders will benefit
from the same guarantors, which are only the U.S.-based
subsidiaries. All value estimated for the foreign subsidiaries is
shared on a pro rata basis between any deficiency claims of secured
lenders and the unsecured notes.
Fitch has revised the EV/EBITDA multiple for SG's U.S.-based cash
flows to 7.0x from 8.0x, in line with historical bankruptcy
proceedings in the gaming sector. The multiple also considers SG's
strong market position and operating track record, as well as the
industry's favorable characteristics such as high, regulated
barriers to entry, low customer churn, less cyclical cash flows,
and high margins. This is in line with the recovery multiples used
for other gaming operators with similar high barriers to entry and
exclusivity.
Similarly, Fitch has also revised the EV/EBITDA multiple for SG's
foreign cash flows to 6.0x from 7.0x. The lower multiple, despite
similar business characteristics, reflects lower transparency of
insolvency valuation outside of the U.S. and historical public
market trading multiple differentials.
Fitch also includes about $300 million of value for SG's minority
and JV investments that pay recurring distributions, which have
historically been about $50 million. Fitch uses a 6.0x multiple,
down from 7.0x, given that substantially all of it is generated
outside of the U.S.
Fitch's waterfall recovery results in a 'B+'/'RR3' recovery for the
senior secured credit facilities, a downgrade from 'BB-'/'RR2'. The
recovery for the unsecured notes is unchanged at 'B'/'RR4'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage above 7.5x on a sustained basis;
- FCF margin below neutral levels (0%) and/or becoming more
volatile on a sustained basis;
- The company indicating a more aggressive financial policy, which
could be demonstrated by shareholder returns or debt-funded JV
investments;
- Loss of a material lottery contract(s).
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The company demonstrating a track record of sustained EBITDA
leverage below 6.5x;
- FCF margin at or above low- to mid-single digits on a sustained
basis.
Liquidity and Debt Structure
At Sept. 30, 2024, Scientific Games had $40 million in cash and
$307 million available under its senior secured revolving facility,
which matures in 2027, compared with a modest debt repayment
schedule of 1% (or $21 million) per annum under its USD term loan B
maturing in 2029. The company has a long-dated and well-staggered
capital structure, with its senior secured euro term loan B, which
ranks pari passu with the debt stack, maturing in 2029, and its
senior unsecured notes maturing in 2030.
It generates cash flow from operations margin in the double digits
and benefits from over $50 million in annual JV distributions. This
also compares with immaterial upfront concession payments or
investments until its JV's Italian Scratch and Win contract expires
in 2028. SG contributed $180 million in 2018 to the JV as part of
the prior concession and Fitch believes its liquidity sources are
sufficient for potential upfront payments.
Issuer Profile
Scientific Games is a global lottery operator. The company provides
solutions for instant ticket and draw lotteries that include
instant ticket manufacturing and management, lottery systems,
retail solutions, and iLottery platforms.
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
----------- ------ -------- -----
Scientific Games
Holdings LP LT IDR B Affirmed B
senior unsecured LT B Affirmed RR4 B
senior secured LT B+ Downgrade RR3 BB-
SEANERGY MARITIME: Reports Record Full Year Profitability for 2024
------------------------------------------------------------------
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP), a leading
pure-play Capesize shipping company, announced its financial
results for the fourth quarter and twelve months ended December 31,
2024. Reflecting its strong commitment to shareholder returns, the
Company also declared a quarterly cash dividend of $0.10 per common
share for the fourth quarter of 2024, with total cash dividends for
2024 of $0.76 per share.
For the quarter ended December 31, 2024, the Company generated Net
Revenues of $41.7 million, compared to $39.4 million in the fourth
quarter of 2023, representing an increase of 6%. Adjusted EBITDA
for the quarter was $20.4 million, compared to $23.9 million in the
same period of 2023. Net Income and Adjusted Net Income for the
quarter were $6.6 million and $7.1 million, respectively, compared
to Net Income of $10.8 million and Adjusted Net Income of $11.4
million in the fourth quarter of 2023. The daily TCE rate of the
fleet for the fourth quarter of 2024 was $23,179, compared to
$24,920 in the same period of 2023.
For the twelve-month period ended December 31, 2024, the Company
generated Net Revenues of $167.5 million, compared to $110.2
million in the same period of 2023, marking an increase of 52%.
Adjusted EBITDA for the twelve months was $98.4 million, compared
to $53.0 million for the same period of 2023. Net Income and
Adjusted Net Income for the twelve months were $43.5 million and
$48.8 million, respectively, compared to Net Income of $2.3 million
and Adjusted Net Income of $11.7 million in the respective period
of 2023. The daily TCE rate of the fleet for the twelve-month
period of 2024 was $25,063, compared to $17,501 in the same period
of 2023. The average daily OPEX was $6,976 compared to $6,879 in
the respective period of 2023.
Cash and cash-equivalents and restricted cash, as of December 31,
2024, stood at $34.9 million. Shareholders’ equity at the end of
the fourth quarter was $262.2 million. Long-term debt (senior loans
and other financial liabilities) net of deferred charges stood at
$257.6 million, while the book value of the fleet, including an
advance for a vessel acquisition, was $488.2 million.
Stamatis Tsantanis, the Company's Chairman & Chief Executive
Officer, stated:
"We are pleased to announce another strong quarter for Seanergy,
underscoring the benefits of our strategic focus on the Capesize
segment. Our robust hedging strategy resulted in the Company
significantly outperforming the broader Capesize market, even amid
seasonal year-end softness. Our fleet-wide daily TCE of $23,179,
exceeded the BCI average of $18,300 by 27%, resulting in net income
of $6.6 million for the fourth quarter of 2024. This strong finish
capped off a record-breaking year, during which we achieved net
income of $43.5 million, with a full-year daily TCE of $25,063,
which is 11% above the BCI average of $22,593.
"Our disciplined commercial strategy and efficient operations
allowed us to generate substantially superior results compared to
industry peers, validating our exclusive focus on Capesize vessels.
Unlike smaller dry bulk segments -- where orderbooks have increased
substantially -- the Capesize orderbook remains at historically low
levels, positioning this segment for potential outperformance over
the long term.
"Our estimate for Q1 2025 TCE is approximately $13,400 per day,
which reflects seasonal Capesize market softness but remains 44%
above the year-to-date BCI average of approximately $9,300 per day.
Meanwhile, our fixed-rate charters at $22,100 per day continue to
significantly outperform spot levels, and with rising forward
freight agreements ("FFAs"), we anticipate a stronger market in the
second half of 2025.
"In line with our stated growth strategy, we executed targeted
fleet expansion while maintaining a healthy balance sheet and
rewarding shareholders with strong capital returns. We declared
total dividends of $0.76 per share for 2024, representing a robust
annualized dividend yield of approximately 11%3. In addition,
during the fourth quarter, we repurchased 226,826 shares at an
average price of $9.44 per share, further enhancing shareholder
value.
"Since the second quarter of 2024, we have committed to invest
$138.0 million in four high-quality Capesize vessels, bringing our
proforma fleet to 21 units, or 3.8 million dwt. This strategic
expansion further strengthens our profitability and cash flow
generation potential, allowing us to continue capitalizing on the
strength of the Capesize market. Importantly, we closed the year
with a loan-to-value ratio of approximately 45%, underscoring our
financial sustainability and prudent capital management in a
volatile macro environment.
"The Capesize market continued to outperform smaller dry bulk
segments in 2024, driven by a favorable supply-demand balance.
Fleet growth was limited to just 1.7%, while seaborne iron ore,
bauxite, and coal shipments increased substantially. Brazilian iron
ore exports surged annually by approximately 6%, and Guinea’s
bauxite exports grew by over 15%, reinforcing the trend of
increasing ton-miles, which directly benefits Capesize companies
like ours.
"Looking ahead to 2025, Capesize fleet growth is projected to slow
further to 1.4%, setting the stage for an even tighter
supply-demand balance. While the start of the year saw seasonal
weakness, spot rates and FFAs have risen sharply in recent weeks,
pointing to a strengthening market in the months ahead. Vessel
values have remained firm, which is a sign of industry confidence
in the Capesize sector’s long-term fundamentals.
"We believe that the long-term outlook for Capesize demand is
robust, driven by rising Atlantic Basin iron ore and bauxite
exports, a historically low orderbook, and tightening environmental
regulations that are expected to restrict Capesize supply further.
A key catalyst is the long-anticipated Simandou iron ore project in
Guinea, which is set to commence exports in 2025 and is expected to
significantly boost ton-mile demand further. At the same time,
global energy needs continue to surge, particularly in emerging
economies, as technology-driven industries such as AI, data
centers, and semiconductor manufacturing require significant
base-load power. Despite the energy transition, coal remains
essential to the global power mix, supporting sustained Capesize
demand as Asia ramps up imports.
"As a pure-play Capesize company, Seanergy remains uniquely
positioned to capitalize on these long-term market tailwinds and to
deliver consistent, superior returns to shareholders."
A full-text copy of the press release is available at
https://tinyurl.com/2b8uea9f
About Seanergy Maritime
Greece-based Seanergy Maritime Holdings Corp. --
http://www.seanergymaritime.com-- is the only pure-play Capesize
ship-owner publicly listed in the US. Seanergy provides marine
dry
bulk transportation services through a modern fleet of Capesize
vessels. The Company's operating fleet consists of 17 Capesize
vessels with an average age of 11.7 years and aggregate cargo
carrying capacity of approximately 3,011,083 dwt.
* * *
This concludes the Troubled Company Reporter's coverage of
Seanergy
Maritime until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
SEAQUEST HOLDINGS: To Sell Interactive Mammal Business to Resolve
-----------------------------------------------------------------
Matt McKinlay, Chapter 11 Trustee of Seaquest Holdings LLC, seeks
permission from the U.S. Bankruptcy Court for the District of
Idaho, to sell Assets to Resolve Marketing LLC, an Idaho limited
liability company, subject to the right of parties to submit
acceptable overbids.
The Trustee seeks to sell substantially all of the Debtor's assets,
including animals and personal property assets located at each of
its leased premises.
The Trustee has also identified certain remaining assets of the
Debtor that he believes can generate value of the Debtor's assets
including:
a. That certain Promissory Note dated January 1, 2024, in the
original principal amount of $462,523.011 made by Resolve Marketing
LLC, an Idaho limited liability company, to and for the benefit of
the Debtor.
b. That certain Personal Guaranty dated November 27, 2023 made
by Michael Johnson to and for the benefit of SeaQuest Management
Inc. and
c. That certain Security Agreement dated January 1, 2024 made by
Resolve to and for the benefit of the Debtor.
On March 24, 2025, Resolve has submitted a letter of intent to act
as the stalking horse bidder for the Assets. The letter also
indicates that Resolve will act as the initial stalking horse
bidder for the purchase of the Assets with an initial stalking
horse bid of $200,000. Resolve also provides an earnest money
deposit of $20,000 to secure his Stalking Horse Bid.
The Trustee believes that the sale of the Assets to Resolve,
subject to overbids no less than $25,000 greater than the Stalking
Horse Bid of $200,000 is in the best interest of the Debtor's
estate.
The Assets will be sold to Resolve for the purchase price of
$200,000 or, if an Acceptable Overbid is received, the highest and
best offer received at the conclusion of the Auction.
The Assets will be sold free and clear of any liens and
encumbrances.
The Trustee discloses certain lienholders of the Assets and their
alleged secured amount including Jeff Cox, FinWise Bank, and U.S.
Small Business Administration.
The Trustee asserts that the sale of the Assets is in the best
interest of the Debtor's estate and creditors.
About Seaquest Holdings LLC
SeaQuest Holdings, LLC better known as SeaQuest, is an interactive
marine, exotic mammal, and bird/reptile life attraction chain.
Guests are encouraged to connect with animals and learn about their
ecosystems through various hands-on activities which include
hand-feeding sharks, stingrays, birds, and tropical animals.
SeaQuest offers a private event venue ideal for school field trips,
birthday parties, and more.
SeaQuest Holdings sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Idaho Case No. 24-00803) on December 2,
2024, with total assets of $659,473 and total liabilities of
$16,653,877. Aaron Neilsen, chief executive officer of SeaQuest
Holdings, signed the petition.
Judge Benjamin P. Hursh handles the case.
The Debtor is represented by Matthew T. Christensen, Esq. at
Johnson May, PLLC
SEARS HOMETOWN: Chancery Rejects Mid-Case Appraisal Dispute Appeal
------------------------------------------------------------------
Jeff Montgomery of Law360 reports that on March 14, 2025, a
Delaware vice chancellor denied a request by bankrupt Sears
Hometown Stores and its billionaire controller to certify a
mid-case appeal, following a Court of Chancery ruling that awarded
an investor the full $4.06 per share post-squeeze-out merger
payment, despite the investor's alternative stock appraisal being
halted by bankruptcy.
About Sears Authorized Hometown Stores
Sears Authorized Hometown Stores, LLC distributes products through
approximately 121 "Sears Hometown Stores," which are locally owned
and operated businesses that offer a selection of the trusted names
in home appliances, lawn and garden equipment, and tools.
Sears Authorized Hometown Stores, LLC, and Sears Hometown Stores,
Inc., sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Lead Case No. 22-11303) on Dec. 12, 2022.
In the petition signed by Elissa Robertson, CEO, Sears Authorized
Hometown disclosed up to $50 million in assets and up to $100
million in liabilities.
Judge Laurie Selber Silverstein oversees the cases.
Saul Ewing LLP is the Debtors' legal counsel. The Debtors tapped
Gray & Company, LLC, as financial advisor and Stretto as claims and
noticing agent.
SHINE SOLAR: Seeks Cash Collateral Access
-----------------------------------------
Shine Solar, LLC asked the U.S. Bankruptcy Court for the Western
District of Arkansas, Fayetteville Division, for authority to use
cash collateral.
The Debtor needs to use cash collateral for day-to-day operations,
including paying employees, utilities, taxes, insurance, and
bankruptcy-related administrative expenses. It is continuing
operations to wind down its business, including completing solar
installations and collecting outstanding funds.
The Debtor has pre-bankruptcy obligations to Bank of America
secured by personal property, cash, and accounts receivable. It
proposed to make adequate protection payments to BOA, with payments
being the greater of $37,000 or 2.4% of gross receipts from the
prior month. These payments will start in the first full month
after the court grants the motion and continue monthly thereafter
until the case is concluded or converted.
BOA will also receive a post-petition replacement lien on the same
collateral as the pre-bankruptcy lien. The Debtor will insure the
collateral and name BOA as the loss payee.
About Shine Solar LLC
Shine Solar, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Ark. Case No. 25-70455) on March 17,
2025, listing up to $10 million in both assets and liabilities.
Caleb Gorden, president of Shine Solar, signed the petition.
Judge Bianca M. Rucker oversees the case.
Stanley V. Bond, Esq., at Bond Law Office, represents the Debtor as
bankruptcy counsel.
SIGYN THERAPEUTICS: G. DeCiccio Retires as CFO
----------------------------------------------
Sigyn Therapeutics, Inc., filed a Form 8-K with the Securities and
Exchange Commission that on February 26, 2025, the Company's Chief
Financial Officer, Mr. Gerald DeCiccio provided notice of
retirement, effective immediately. In Mr. DeCiccio's notice of
retirement, Mr. DeCiccio indicated his retirement was not the
result of any disagreements with the Company.
As a result of Mr. DeCiccio's retirement, Mr. James Joyce, the
Company's Chief Executive Officer, will serve as interim Chief
Financial Officer.
Subsequently, the Company entered into a Consulting Agreement with
Mr. DeCiccio, to provide financial support services similar to what
he provided to the Company prior to his appointment as the
Company's CFO.
About Sigyn
Headquartered in San Diego, California, Sigyn Therapeutics, Inc.
is
a development-stage company that creates blood purification
technologies to overcome clearly defined limitations in
healthcare.
Sigyn Therapy, its lead product candidate, is being advanced to
treat life-threatening conditions that are not addressed with
market-cleared drug agents. Candidate treatment indications
include endotoxemia, sepsis (a leading cause of hospital deaths),
community acquired pneumonia (a leading cause of infectious
disease
deaths), drug-resistant bacterial infections, and emerging
pandemic
viral threats.
Based in New York, Kreit & Chiu CPA LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated Feb. 20, 2024, citing the Company's recurring losses from
operations, net capital deficiency, and negative cash flows from
operating activities, which raise substantial doubt regarding its
ability to continue as a going concern.
SLATER PARK: Gets Final OK to Use Cash Collateral
-------------------------------------------------
Slater Park, LLC received final approval from the U.S. Bankruptcy
Court for the Northern District of Georgia, Gainesville Division,
to use cash collateral.
The final order authorized the company to use cash collateral,
including revenue from its business to pay the expenses set forth
in its budget, with a 10% variance allowed.
The U.S. Small Business Administration holds a first-priority
security interest in the cash collateral. Slater Park believes that
another lender may also assert an interest in the collateral.
As protection, the SBA and the other lender will be granted
replacement liens on all property acquired by the company after the
petition date, with the same priority as their pre-bankruptcy
liens.
The final order directed Slater Tower, LLC, an affiliate of Slater
Park, to remit monthly payment to SBA in the amount of $17,264.03
in accordance with the terms of their agreement.
Slater Park's authority to use cash collateral terminates upon the
conversion or dismissal of its Chapter 11 case; the appointment of
an examiner or a trustee with expanded powers in the case; and the
company's failure to comply with the final order.
About Slater Park
Slater Park, LLC owns and operates two bars and interactive
amusements on the rooftop at the Premises that is commonly known as
Skyline Park in Atlanta, Ga.
Slater Park filed Chapter 11 petition (Bankr. N.D. Ga. Case No.
24-21491) on November 22, 2024, listing up to $10 million in both
assets and liabilities. Brett Hull-Ryde, chief executive officer,
signed the petition.
Judge James R. Sacca oversees the case.
The Debtor is represented by:
Ceci Christy, Esq.
William A. Rountree, Esq.
Rountree Leitman Klein & Geer, LLC
Tel: 404-584-1238
cchristy@rlkglaw.com
wrountree@rlkglaw.com
SOLID BIOSCIENCES: Files S-3 Statement for Resale of 975K Shares
----------------------------------------------------------------
Solid Biosciences, Inc., filed a Form S-3 with the Securities and
Exchange Commission relating to the resale from time to time of up
to 975,496 shares of common stock of the Company's by FA212 LLC.
The selling stockholder acquired the shares of our common stock in
a private placement on February 28, 2025.
A full-text copy of the S-3 is available at
https://tinyurl.com/bdcn32mv
About Solid Biosciences
Charlestown, Mass.-based Solid Biosciences, Inc. is a life sciences
company focused on advancing a portfolio of current and future gene
therapy candidates, including SGT-003 for the treatment of Duchenne
muscular dystrophy, SGT-501 for the treatment of catecholaminergic
polymorphic ventricular tachycardia, and additional assets for the
treatment of cardiac and other diseases, at different stages of
development with varying levels of investment.
As of September 30, 2024, the Company had $211.8 million in total
assets, $44.8 million in total liabilities, and $167 million in
total stockholders' equity.
The Company has evaluated whether there are conditions and events
that, considered in the aggregate, raise substantial doubt about
the Company's ability to continue as a going concern within one
year after the date the financial statements are issued. As of
September 30, 2024, the Company had an accumulated deficit of
$740.9 million. The Company expects to continue to generate
operating losses for the foreseeable future. Based upon its current
operating plan, the Company expects that its cash, cash equivalents
and available-for-sale securities of $171.1 million excluding
restricted cash of $1.9 million, as of September 30, 2024, will be
sufficient to fund its operating expenses and capital expenditure
requirements for at least twelve months from the date of issuance
of these condensed consolidated financial statements. However, the
Company has based this estimate on assumptions that may prove to be
wrong, and its operating plan may change as a result of many
factors currently unknown to it. As a result, the Company could
deplete its capital resources sooner than it currently expects.
The Company expects to finance its future cash needs through a
combination of equity offerings, debt financings, collaborations,
strategic partnerships and alliances, or licensing arrangements. If
the Company is unable to obtain funding, the Company would be
forced to delay, reduce or eliminate some or all of its research
and development programs, preclinical and clinical testing, or
commercialization efforts, which could adversely affect its
business prospects.
SOLID BIOSCIENCES: Registers Additional Securities For 2020 Plan
----------------------------------------------------------------
Solid Biosciences, Inc. filed a Registration Statement on Form S-8,
relating to the Amended and Restated 2020 Equity Incentive Plan, as
amended, of the Company.
The Amended and Restated 2021 Employee Stock Purchase Plan of the
Registrant, is being filed for the purpose of registering
additional securities of the same class as other securities for
which a Registration Statement on Form S-8 relating to the Amended
and Restated 2020 Equity Incentive Plan, as amended, and the
Amended and Restated 2021 Employee Stock Purchase Plan has
previously been filed and is effective.
Accordingly, the Registration Statement incorporates by reference
the contents of (i) the Registration Statement on Form S-8, File
No. 333-241370, filed with the Securities and Exchange Commission
on August 6, 2020, relating to the 2020 Equity Incentive Plan, (ii)
the Registration Statement on Form S-8, File No. 333-258856, filed
with the Securities and Exchange Commission on August 16, 2021
relating to the 2020 Equity Incentive Plan, 2021 Employee Stock
Purchase Plan, Inducement Stock Option Awards (March 2021 –
August 2021) and Inducement Restricted Stock Unit Award (August
2021), (iii) the Registration Statement on Form S-8, File No.
333-268643, filed with the Securities and Exchange Commission on
December 2, 2022 relating to the Amended and Restated 2020 Equity
Incentive Plan, Inducement Stock Option Awards (December 2022) and
Inducement Restricted Stock Unit Awards (December 2022), (iv) the
Registration Statement on Form S-8, File No. 333-270765, filed with
the Securities and Exchange Commission on March 23, 2023 relating
to the Amended and Restated 2020 Equity Incentive Plan, (v) the
Registration Statement on Form S-8, File No. 333-272456, filed with
the Securities and Exchange Commission on June 6, 2023 relating to
the 2021 Employee Stock Purchase Plan, as amended, (vi) the
Registration Statement on Form S-8, File No. 333-277869, filed
with the Securities and Exchange Commission on March 13, 2024
relating to the Amended and Restated 2020 Equity Incentive Plan,
Amended and Restated 2021 Employee Stock Purchase Plan and 2024
Inducement Stock Incentive Plan, and (vii) the Registration
Statement on Form S-8, File No. 333-280116, filed with the
Securities and Exchange Commission on June 11, 2024 relating to the
Amended and Restated 2020 Equity Incentive Plan.
A full-text copy of the Form 8-K is available at
https://tinyurl.com/5n93846j
About Solid Biosciences
Charlestown, Mass.-based Solid Biosciences, Inc. is a life
sciences
company focused on advancing a portfolio of current and future
gene therapy candidates, including SGT-003 for the treatment of
Duchenne muscular dystrophy, SGT-501 for the treatment of
catecholaminergic polymorphic ventricular tachycardia, and
additional assets for the treatment of cardiac and other diseases,
at different stages of development with varying levels of
investment.
As of March 31, 2024, the Company has $248.7 million in total
assets, $38 million in total liabilities, and $210.7 million in
total stockholders' equity.
The Company cautioned in its Form 10-Q Report for the quarterly
period ended March 31, 2024, that substantial doubt exists about
its ability to continue as a going concern. According to the
Company, as of March 31, 2024, it had an accumulated deficit of
$683.1 million. During the three months ended March 31, 2024, the
Company incurred a net loss of $24.3 million and used $25.2
million
of cash in operations. The Company expects to continue to generate
operating losses in the foreseeable future. Based upon its current
operating plan, the Company expects that its cash, cash
equivalents
and available-for-sale securities of $206.1, million excluding
restricted cash of $1.8 million, as of March 31, 2024, will be
sufficient to fund its operating expenses and capital expenditure
requirements for at least 12 months. However, the Company has
based
this estimate on assumptions that may prove to be wrong, and its
operating plan may change as a result of many factors currently
unknown to it.
As a result, the Company could deplete its capital resources
sooner
than it currently expects. The Company expects to finance its
future cash needs through a combination of equity offerings, debt
financings, collaborations, strategic partnerships and alliances
or
licensing arrangements. If the Company is unable to obtain
funding,
the Company would be forced to delay, reduce or eliminate some or
all of its research and development programs, preclinical and
clinical testing or commercialization efforts, which could
adversely affect its business prospects.
SOUTHERN CUTTERS: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------
Southern Cutters Land Clearing and Hauling, LLC received interim
approval from the U.S. Bankruptcy Court for the Southern District
of Alabama to use cash collateral.
The interim order signed by Judge Henry Callaway authorized the
company to use $10,057.06 for wages and contract labor and
$3,149.12 for fuel and supplies from its cash collateral.
To compensate for any reduction in the value of their collateral,
secured creditors of the company will be granted replacement liens,
with the same validity and priority as their pre-bankruptcy liens.
The interim order will remain in effect until the court issues a
final order.
A final hearing is set for April 15.
About Southern Cutters Land Clearing and Hauling
Southern Cutters Land Clearing and Hauling, LLC filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D.
Ala. Case No. 25-10519) on February 26, 2025, listing up to $1
million in both assets and liabilities. The petition was signed by
Alicia N. Wolford as member.
Judge Henry A. Callaway oversees the case.
Anthony B. Bush, Esq., at the Bush Law Firm, LLC, represents the
Debtor as bankruptcy counsel.
SPHERE 3D: Receives Notice of Delisting from Nasdaq
---------------------------------------------------
Sphere 3D Corp. reported in a Form 8-K filed with the Securities
and Exchange Commission that on March 6, 2025, the Company received
a notice from the Nasdaq Listing Qualifications Department of The
Nasdaq Stock Market LLC stating that the bid price of the Company's
common shares for the last 30 consecutive trading days had closed
below the minimum $1.00 per share required for continued listing
under Listing Rule 5550(a)(2).
The Company has a period of 180 calendar days, or until September
2, 2025, to regain compliance with the Listing Rule. The notice
from Nasdaq has no immediate effect on the listing or trading of
the Company's common shares on The Nasdaq Capital Market.
If the Company does not regain compliance with Nasdaq Listing Rule
5550(a)(2) by September 2, 2025, the Company may be eligible for an
additional 180 calendar day compliance period. To qualify, the
Company would be required to meet the continued listing requirement
for market value of publicly held shares and all other initial
listing standards for The Nasdaq Capital Market, with the exception
of the bid price requirement, and would need to provide written
notice of its intention to cure the deficiency during the second
compliance period.
The Company intends to monitor the closing bid price of its common
shares and may, if appropriate, consider implementing available
options, including, but not limited to, implementing a reverse
stock split of its outstanding securities, to regain compliance
with the minimum bid price requirement under the Nasdaq Listing
Rules.
About Sphere 3D
Sphere 3D Corp. (NASDAQ: ANY) -- http://www.Sphere3D.com/-- is a
cryptocurrency miner growing its industrial-scale Bitcoin mining
operation through the capital-efficient procurement of
next-generation mining equipment and partnering with best-in-class
data center operators. Headquartered in Stamford, CT, Sphere 3D is
dedicated to growing shareholder value while honoring its
commitment to strict environmental, social, and governance
standards.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor
since
2022, issued a "going concern" qualification in its report dated
March 13, 2024. The report emphasizes that the Company has
suffered
recurring losses from operations and does not expect to have
sufficient working capital to fund its operations, which raises
substantial doubt about its ability to continue as a going
concern.
As of Sept. 30, 2024, Sphere 3D had $44.26 million in total
assets,
$3.55 million in total current liabilities, $4.86 million in
temporary equity, and $35.85 million in total shareholders' equity.
STITCH ACQUISITION: S&P Discontinues 'SD' Issuer Credit Rating
--------------------------------------------------------------
S&P Global Ratings discontinued its 'SD' (selective default) issuer
credit rating on Stitch Acquisition Corp. following the company's
distressed debt restructuring in December 2024. The 'SD' issuer
credit rating has been outstanding for more than 30 days and would
not be raised in the future. SVP Singer Intermediate Holdings III
LLC is the entity that emerged out of the legal entity
restructuring of Stitch Acquisition Corp. S&P assigned its 'CCC+'
issuer credit rating to SVP Singer Intermediate Holdings III LLC
with a stable outlook.
At the same time, S&P discontinued its issue-level ratings on
Stitch Acquisition Corp.'s senior secured term loan B facility.
SUNATION ENERGY: J. Brennan Replaces A. Childs as CFO
-----------------------------------------------------
SUNation Energy Inc. disclosed in a Form 8-K filing with the U.S.
Securities and Exchange Commission that on March 3, 2025, Andrew
Childs, the Company's interim Chief Financial Officer, informed
SUNation Energy, Inc. and its Board of Directors of his intention
to resign as the interim Company's Chief Financial Officer,
effective at the close of business on March 6, 2025. Mr. Childs has
served as the Interim CFO since September 4, 2024. Mr. Childs'
resignation is not the result of any dispute or disagreement with
the Company, including with respect to any matters relating to the
Company's accounting practices, operations, policies or financial
reporting.
On March 5, 2025, following Mr. Childs' resignation, the Company's
Board of Directors appointed James Brennan to fill the role of
Chief Financial Officer of the Company, effective immediately,
which shall be in addition to his role serving as the Chief
Operating Officer. Ms. Kristin Hlavka will continue in her role as
the Company's Chief Accounting Officer and will assist Mr. Brennan
in connection with his expanded role with the Company.
About SUNation Energy,
fka Pineapple Energy Inc.
SUNation Energy Inc., formerly known as Pineapple Energy Inc. is
focused on growing leading local and regional solar, storage, and
energy services companies nationwide.
Melville, N.Y.-based UHY LLP, the Company's auditor since 2023,
issued a "going concern" qualification in its report dated March
29, 2024, citing that the Company's current financial position and
the Company's forecasted future cash flows for 12 months beyond
the
date of issuance of the financial statements indicate that the
Company will not have sufficient cash to make the first SUNation
earnout payment in the second quarter of 2024 or the first
principal payment of the Long-Term Note due on November 9, 2024,
factors which raise substantial doubt about the Company's ability
to continue as a going concern.
SUNATION ENERGY: L1 Capital Holds 9.99% Equity Stake
----------------------------------------------------
L1 Capital Global Opportunities Master Fund, Ltd., disclosed in a
Schedule 13G filing with the U.S. Securities and Exchange
Commission that as of February 27, 2025, it beneficially owns
438,950 shares of SUNation Energy, Inc.'s common stock,
representing 9.99% of the Company's outstanding shares of stock.
About SUNation Energy,
fka Pineapple Energy Inc.
SUNation Energy Inc., formerly known as Pineapple Energy Inc. is
focused on growing leading local and regional solar, storage, and
energy services companies nationwide.
Melville, N.Y.-based UHY LLP, the Company's auditor since 2023,
issued a "going concern" qualification in its report dated March
29, 2024, citing that the Company's current financial position and
the Company's forecasted future cash flows for 12 months beyond
the
date of issuance of the financial statements indicate that the
Company will not have sufficient cash to make the first SUNation
earnout payment in the second quarter of 2024 or the first
principal payment of the Long-Term Note due on November 9, 2024,
factors which raise substantial doubt about the Company's ability
to continue as a going concern.
SUNNOVA ENERGY: Moody's Lowers CFR to 'Ca', Outlook Stable
----------------------------------------------------------
Moody's Ratings downgraded Sunnova Energy International Inc.'s
(Sunnova) corporate family rating to Ca from B3 and probability of
default rating to Ca-PD from B3-PD. At the same time, Moody's
downgraded Sunnova Energy Corporation's senior unsecured notes
rating to Ca from B2. Sunnova's Speculative Grade Liquidity (SGL)
Rating was downgraded to SGL-4 from SGL-3. The outlooks of Sunnova
and Sunnova Energy Corporation are stable.
RATINGS RATIONALE
"Sunnova faces a higher likelihood of default as it approaches $975
million debt maturities in 2026 with a high cost of capital,
pressures on working capital, and adverse market conditions for
renewable energy and tax equity, on which it is highly dependent",
said Toby Shea, VP - Senior Credit Officer. "These issues have
become more critical following the going concern opinion included
in Sunnova's 10-K filing earlier this month, increasing the level
of uncertainty over the company's future", added Shea.
Although Sunnova was able to secure a senior priming $185 million
high-interest rate term loan in early March to maintain liquidity,
a near-term debt restructuring is still likely as Moody's believes
widespread concerns about its financial viability will likely
hinder its ability to continue to operate effectively in its
interactions with dealers, customers, investors, and other
stakeholders.
In recent years, the rooftop solar industry has faced a more
challenging business environment that has pressured many of the key
participants, including Sunnova. Although distributed generation
companies benefited from higher utility tariffs in 2022 and 2023,
they are now contending with a much higher cost of capital for
their financings. Additionally, many states have reduced net
metering incentives, leading to lower solar export credits for
distributed generators.
Furthermore, investor confidence in the sector has been undermined
by the political uncertainty surrounding potential revisions to tax
credit policies under the Trump administration and the more
negative sentiment towards the renewable energy sector overall. In
addition, the August 2024 bankruptcy of a key industry player,
SunPower Corporation, has heightened the scrutiny of Sunnova.
ESG considerations were a key credit consideration in this rating
action as Moody's lowered Sunnova's governance score to G-5 from
G-3 and its credit impact score to CIS-5 from CIS-3. The lower
governance score reflects the company's high leverage, including
the recent issuance of a $185 million term loan that has
disadvantaged existing senior noteholders, management turnover, and
the increasing likelihood that the company could pursue a
distressed exchange or other type of restructuring as it faces
substantial upcoming debt maturities. The CIS-5 indicates that ESG
considerations have a pronounced impact on Sunnova's ratings, which
are lower than they would be if ESG risks did not exist.
Liquidity
The downgrade of Sunnova's speculative grade liquidity rating to
SGL-4 from SGL-3 reflects its much weaker liquidity position that
the new $185 million term loan only partially addresses.
According to its 2024 10-K filing, the company had an unrestricted
cash balance of $211.2 million, but $176.5 million of this amount
have been paid into collections account by collateralized assets
under non-recourse financing arrangements, leaving only $34.7
million available for other purposes at the end of the year.
While the $185 million term loan has temporarily helped liquidity,
Moody's expects its need for working capital to also rise
substantially as its asset-based lenders, local dealers, and tax
equity investors require more security and assurances to engage
with Sunnova given the going concern opinion and the higher
prospects of a distressed exchange or other type of restructuring.
Outlook
Sunnova's outlook is stable because the current rating incorporates
Moody's expectations of a near-term default or debt restructuring
as the company strives to attain a more sustainable capital
structure and Moody's views of the likely recovery range for senior
noteholders at Sunnova Energy Corporation amidst considerable
uncertainty in the company's prospects.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade
Moody's could take a positive rating action if Sunnova is able to
address its debt maturities due in 2026 without resorting to a
distressed exchange or other type of restructuring or if the
prospect for recovery on its senior notes improves.
Factors that could lead to a downgrade
Moody's could downgrade Sunnova's senior notes further should
Moody's views of the level of recovery on the senior notes diminish
significantly.
LIST OF AFFECTED RATINGS
Issuer: Sunnova Energy International Inc.
Downgrades:
LT Corporate Family Rating, Downgraded to Ca from B3
Probability of Default Rating, Downgraded to Ca-PD from B3-PD
Speculative Grade Liquidity Rating, Downgraded to SGL-4 from
SGL-3
Outlook Actions:
Outlook, Changed To Stable From Negative
Issuer: Sunnova Energy Corporation
Downgrades:
Backed Senior Unsecured, Downgraded to Ca from B2
Outlook Actions:
Outlook, Changed To Stable From Negative
The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in December
2023.
TARGET HOSPITALITY: Moody's Withdraws 'B1' CFR on Debt Repayment
----------------------------------------------------------------
Moody's Ratings has withdrawn all ratings of Target Hospitality
Corp. ("Target Hospitality" or "Target") including the company's B1
corporate family rating, B1-PD probability of default rating, and
B2 rating for Arrow BidCo LLC's ("Arrow BidCo") 10.75% backed
senior secured second lien notes due June 2025. Arrow BidCo is a
wholly owned subsidiary of Target Hospitality. Additionally, the
SGL-1 Speculative Grade Liquidity rating was also withdrawn. Prior
to the withdrawal the outlook was stable.
RATINGS RATIONALE
Moody's have withdrawn all ratings following the repayment of all
of the company's outstanding rated debt.
Target Hospitality (NASDAQ:TH) provides turnkey specialty rental
workforce lodging and hospitality solutions in North America.
TARO INVESTMENT: Unsecureds to Get 100 Cents on Dollar in Plan
--------------------------------------------------------------
Taro Investment Corporation filed with the U.S. Bankruptcy Court
for the District of Maryland a Chapter 11 Plan of Liquidation dated
March 3, 2025.
The Debtor is not in operation and has no income, nor does it
expect to have income during the term of this Plan. If such income
in obtained during the term of this Plan, the Debtor shall hold
same in the Debtor-in-Possession account for payment of
administration expenses, including costs to prepare the property of
the estate for an auction sale, subject to approval of the Court.
It is contemplated that all of the income obtained for satisfaction
of claims of creditors shall be obtained by the liquidation of the
assets of the Debtor at an auction sale. One or more sales of the
property to the Debtor, including personal property located on the
premises shall made free and clear of liens pursuant to Section 363
of the Bankruptcy Code.
The term of this Plan begins on the date of confirmation of this
Plan and ends 60 days after the resolution of all disputed claims
and creditors are paid from the proceeds of the sale of the assets
of the debtor.
The value of the property to be distributed under the Plan during
the term of the Plan is not less than the Debtor's projected
disposable income for that same period. Unsecured creditors holding
allowed claims will receive distributions, which the Debtor has
valued at approximately 100 cents on the dollar. The Plan also
provides for the payment of secured, administrative, and priority
claims in accordance with the Bankruptcy Code.
Class 5 consists of Allowed Claims of non-Insider unsecured
creditors in this proceeding. Only one potential general unsecured
creditor is known at this time and said claim is disputed.
Class 6 consists of Allowed Claims of Insiders with respect to
loans or advances to the Debtor.
Class 7 consists of Holders of equity interest in the property by
virtue of its ownership interest or capital investment in the
Debtor. This equity security holder would be the Estate of Thomas
Taro, Sr. That Estate includes expenses of administering the
estate, including Personal Representative fees and expenses, tax
liabilities, and the net distribution to beneficiaries of the Trust
established by the Last Will and Testament of Thomas Taro, Sr.
Funding for the Plan shall come primarily from sale of the Debtor's
Property in a free and clear sale conducted by SVN Auction
Services, LLC ("SVN"), with a marketing period culminating in a
public auction with a reserve to be determined by the Debtor, in
consultation with equity security holders.
The auction sale shall be conducted as soon as practicable either
before or after Confirmation, taking into consideration the advice
of the auctioneer in order to maximize the return to creditors;
provided, however, that in no event shall the auction occur later
than September 30, 2025. The Court shall approve any bid
procedures, and in the event that any sale is contemplated prior to
confirmation of the Plan, the Debtor shall file a motion pursuant
to Section 363 of the Bankruptcy Code for a sale free and clear of
liens, subject to the provisions of that statute.
The Debtor has hired and the Court has approved SVN to conduct a
bankruptcy auction of its Property. The conduct of the auction
shall be determined by SVN in consultation with the Debtor and its
equity security holders. The sale may include the inclusion of a
"stalking horse" bid, or, in the event that a private offer is
approved by all equity security holders that provides sufficient
funding to pay all allowed claims, at a private sale.
Included in the land owned by the Debtor is a subdivided Lot known
as Lot 13 Fox Run Estates that is subject to an agricultural
easement that encumbers the balance of the Brick House Farm. The
proposed purchaser is seeking permission from Howard County, MD to
remove the approximately 1-acre portion from the agricultural
easement. Subject to satisfaction of multiple contingencies, the
Debtor intends to sell an approximately 1-acre portion of this Lot
at a private sale free and clear of liens.
Upon closing of the sale of the Property, and, if sold separately,
the approximately 1-acre lot, the Debtor will pay sales proceeds as
follows:
* First, subject to the terms of the Auctioneer Retainer
Agreement, to the actual and necessary costs and expenses of sale,
including but not limited to commission(s), advertising and closing
costs.
* Second, pursuant to the provisions of Section 506(c) of the
Bankruptcy Code, to the payment of the Allowed Claims of Class 1,
provided that the auction sale yields sufficient proceeds to pay
secured liens against the Property.
* Third, to the payment of the Allowed Claims, if any, of
Class 2, pursuant to Section 1129 (a)(9)(A) of the Bankruptcy
Code.
* Fourth, to the payment of the Allowed Claim, if any, of
Class 3, in accordance with Section 1129 (a)(9)(C),(D) and Section
1129(b)(2)(A) of the Bankruptcy Code.
* Fifth, to the payment of the Allowed Claim of Class 4, in
accordance with Section 1129(b)(2)(A) of the Bankruptcy Code.
* Sixth, to the payment of Allowed Claims of Class 5 through
7.
The Debtor anticipates that the Property will generate proceeds
sufficient to fully pay the Allowed Claim of Classes 5 through 7.
If that proves incorrect, the claims subordinate to Class 5 will be
paid in descending order of priority.
A full-text copy of the Liquidating Plan dated March 3, 2025 is
available at https://urlcurt.com/u?l=ZZGBQF from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Ronald L. Schwartz, Esq.
4907 Niagara Road, Suite 103
College Park, MD 20740
Tel: (301) 474-2300
Email: ronaldschwartz@verizon.net
Marc E. Shach, Esq.
Coon & Cole, LLC
1301 York Road, Suite 400
Lutherville, MD 21093
Phone: (410) 244-8800
Email: mes@cooncolelaw.com
About Taro Investment Corporation
Ellicott City, Maryland-based Taro Investment Corporation is
engaged in the business of bottled water manufacturing.
Taro Investment Corp. filed its voluntary petition for Chapter 11
protection (Bankr. D. Md. Case No. 24-13539) on April 26, 2024,
listing $2,146,200 in assets and $2,159,165 in liabilities. Meghan
McCulloch, Personal Representative of Estate of Thomas Taro Sr.,
authorized representative of the Debtor, signed the petition.
Ronald L. Schwartz, Esq. serves as the Debtor's legal counsel.
TEXACO INC: Challenges Ch. 11 Ruling to Keep La. Litigation Alive
-----------------------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that Texaco
stated it will appeal a New York bankruptcy judge's ruling that its
37-year-old Chapter 11 reorganization did not discharge tens of
billions in environmental litigation liabilities.
About Texaco Inc.
Texaco Inc. provides oil services. The Company explore, produce,
transport, refine, and market crude oil, natural gas liquids,
natural gas, and petroleum.[BN]
Texaco, Inc., and two of its wholly owned subsidiaries, Texaco
Capital Inc., and Texaco Capital N.V., sought Chapter 11 protection
(Bankr. S.D.N.Y. Case Nos. 87-B-20142 through 87-B- 20144) on Apr.
12, 1987, represented by the law firm of Weil, Gotshal & Manges,
LLP. Lawyers at Kramer, Levin, Nessen, Kamin & Frankel,
represented the General Creditors' Committee, and lawyers at
Cleary, Gottlieb, Steen & Hamilton, represented the Industry
Creditors' Committee. These two unsecured creditors' committees
were merged at the Debtor's behest by order of the Honorable Howard
Schwartzberg, 79 B.R. 560, on Nov. 12, 1987. Lawyers at Keck, Mahin
& Cate represented the Equity Committee. Lawyers at Levin &
Weintraub & Crames in New York, Stutman, Triester & Glass, P.C., in
Los Angeles, and Baker & Botts, in Houston, Tex., represented
Penzoil Company, Texaco's largest creditor.
TITANIUM HOLDINGS: Seeks Chapter 11 Bankruptcy in Nevada
--------------------------------------------------------
On March 20, 2025, Titanium Holdings LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Nevada. According to court filing, the Debtor reports between $1
million and $10 million in debt owed to 1 and 49 creditors. The
petition states funds will not be available to unsecured
creditors.
About Titanium Holdings LLC
Titanium Holdings LLC is a limited liability company.
Titanium Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 25-11509) on March 20,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by:
David A. Riggi, Esq.
RIGGI LAW FIRM
7900 W Sahara Ave Suite 100
Las Vegas NV 89117
Email: riggilaw@gmail.com
UNLOCKD MEDIA: Plans to Appeal Google Antitrust Case to 9th Circ.
-----------------------------------------------------------------
Nadia Dreid of Law360 reports that defunct advertising app maker
Unlockd is seeking Ninth Circuit review of its antitrust lawsuit
against Google, claiming the company fostered its reliance on
Google platforms before severing access when it became a
competitive threat.
About Unlockd Media Inc. and
Unlockd Operations US Inc.
Unlockd Media Inc. -- https://unlockd.com/ -- is a company that
offers Unlockd a mobile platform that rewards consumers when they
unlock their digital device and view targeted ads, content or
offers.
Unlockd Media and its affiliate Unlockd Operations US Inc. sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Case Nos. 18-13243 and 18-13248) on Oct. 26, 2018. At the time of
the filing, each Debtor was estimated to have assets of less than
$500,000 and liabilities of $1 million to $10 million. The cases
have been assigned to Judge James L. Garrity Jr.
US 24 TRUCK: Gets Interim OK to Use Cash Collateral Until April 5
-----------------------------------------------------------------
US 24 Truck and Trailer Repair Co. got the green light from the
U.S. Bankruptcy Court for the Northern District of Indiana to use
cash collateral until April 5.
The court order authorized the company to use cash collateral on an
interim basis to pay the expenses set forth in its budget.
As protection, secured creditors with an interest in cash
collateral will be granted replacement liens with the same priority
and extent as their pre-bankruptcy liens.
A final hearing is scheduled for April 4.
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 reported total assets
of $1,236,313 and total liabilities of $90,033.
The Debtor is represented by:
Weston E. Overturf, Esq.
Kroger Gardis Regas, LLP
111 Monument Circle, Suite 900
Indianapolis, IN 46204
Tel: 317-777-7443
Fax 317-264-6832
VILLAGE ROADSHOW: Gets Preliminary Chapter 11 Loans Approval
------------------------------------------------------------
Yun Park of Law360 Bankruptcy Authority reports that on March 18,
2025, a Delaware bankruptcy judge granted interim approval for
Village Roadshow, the producer of films such as The Matrix, to
access a portion of its $12.7 million Chapter 11 financing from
senior lenders, despite initial concerns about its connection to
proposed sale procedures.
About Village Roadshow
Village Roadshow is a film production company.
Village Roadshow sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-10475) on March 17,
2025. In its petition, the Debtor reports estimated assets between
$100 million and $500 million and estimated liabilities between $1
billion and $10 billion.
The Debtor is represented by Benjamin C. Carver, Esq., Joseph M.
Mulvihill, Esq., and Carol E. Thompson, Esq., at Young Conaway
Stargatt & Taylor, LLP, in Wilmington, Delaware.
WA3 PROPERTIES RENTON: Case Summary & Seven Unsecured Creditors
---------------------------------------------------------------
Debtor: WA3 Properties Renton LLC
20 E Sunrise Hwy
Valley Stream, NY 11581
Business Description: WA3 Properties Renton owns a 99-bed skilled
nursing facility at 80 SW 2nd Street,
Renton, WA 98057, in fee simple title, with
a valuation of $10 million.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-71121
Judge: Hon. Louis A Scarcella
Debtor's Counsel: Avrum J. Rosen, Esq.
LAW OFFICES OF AVRUM J. ROSEN, PLLC
38 New St
Huntington, NY 11743-3327
Tel: 631-423-8527
Email: arosen@ajrlawny.com
Total Assets: $11,887,584
Total Liabilities: $8,129,000
The petition was signed by Samuel Goldner as manager.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/HQOMTFI/WA3_Properties_Renton_LLC__nyebke-25-71121__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Seven Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Delaware Div. of Revenue Unknown
P.O. Box 8763
Wilmington, DE 19899
2. Dickson Frohlich Attorneys' Fees $0
Phillips
1420 5th Ave
Suite 2000
Seattle, WA 98101
3. Internal Revenue Service Unknown
Centralized Insolvency Op
P.O. Box 7346
Philadelphia, PA 19101
4. Malka Designs LLC Litigation $0
c/o David Fink, Esq.
One North Charles Street
Suite 350
Baltimore, MD 21201
5. NYS Dept of Tax & Finance Unknown
Bankruptcy Section
P.O. Box 5300
Albany, NY 12205
6. Southwest 2nd Litigation $0
Street Heal
15406 Meridian
Avenue E
Suite 201
Puyallup, WA 98375
7. Washington St. Dep of Rev Unknown
Attn: Bankruptcy Unit
2101 4th Ave, Suite 1400
Seattle, WA 98121
WELLPATH HOLDINGS: Seeks to Extend Plan Exclusivity to May 12
-------------------------------------------------------------
Wellpath Holdings, Inc., and certain of its Debtor Affiliates asked
the U.S. Bankruptcy Court for the Southern District of Texas to
extend their exclusivity periods to file a plan of reorganization
and obtain acceptance thereof to May 12 and September 8, 2025,
respectively.
The Debtors explain that the size and complexity of these chapter
11 cases warrant extension of the Exclusive Periods. As of the
Petition Date, these chapter 11 cases involved 39 Debtors that,
collectively, provided medical and mental health services in
correctional facilities, inpatient and residential treatment
facilities, forensic treatment facilities, and civil commitment
centers. Overall, the Debtors operated approximately 420 facilities
across 39 states, employed more than 13,000 people, and serviced
nearly 200,000 patients daily.
The Debtors claim that they devoted substantial time and effort to
pursuing a marketing process (the "Marketing Process") for the sale
of all or substantially all of the Debtors' assets. The applicable
Debtors and the Recovery Solutions Purchaser consummated the
Recovery Solutions Sale and, pursuant to the Recovery Solutions
Sale Order, the chapter 11 cases of certain Debtors were dismissed.
The Debtors, however, did not receive a Qualified Bid for the
Corrections Business. As a result, the Debtors cancelled the
Marketing Process relating to the Corrections Business and pivoted
to a restructuring pursuant to the Plan.
The Debtors assert that they are generally paying administrative
expenses as they come due and will continue to do so. In addition,
as set forth in the monthly operating reports filed to date, as of
January 31, 2025, the Debtors made approximately $437 million in
disbursements since the Petition Date and have a total cash balance
of approximately $159 million. As such, this factor also weighs in
favor of allowing the Debtors to extend the Exclusive Periods.
The Debtors further assert that their proposed Plan has the support
of over 85% of the First Lien Lenders and 80% of the Second Lien
Lenders. This overwhelming support demonstrates that the Plan is
viable and confirmable, and the Debtors are proceeding toward
confirmation expeditiously. While the Debtors are committed to
continuing to engage in discussions with the Committee with the
goal of reaching a global settlement of the issues in these chapter
11 cases, the Debtors believe that the proposed Plan will meet the
voting requirements under section 1129(b) even if general unsecured
creditors vote to reject the Plan.
The Debtors note that their restructuring process is intended to
confirm a chapter 11 plan that maximizes the value of the Debtors'
estates for the benefit of the Debtors' key economic stakeholders.
The Debtors request an extension of the Exclusive Periods, not to
pressure creditors, but to provide a sufficient window in which the
Debtors can solicit votes on, obtain confirmation of, the Plan and
implement the various transactions contemplated thereby without the
distraction and disruption created by competing plan proposals.
The Debtors cite that they seek to maintain exclusivity so that
parties with competing interests do not hinder the Debtors' efforts
to finalize a value-maximizing restructuring. Extending the
Exclusive Periods would permit the Debtors to continue prosecuting
their value-maximizing Plan process and enable the Debtors'
stakeholders to realize the benefits of months of hard fought
negotiations.
Moreover, an extension of the Exclusive Periods would not prejudice
creditors because the requested relief would avoid the unnecessary
drain on Debtors' estates due to the potential proposal of
competing chapter 11 plans. All stakeholders benefit from continued
stability and predictability, which comes only with the Debtors
being the sole potential plan proponents. Finally, even if the
Court approves an extension of the Exclusive Periods, nothing
prevents parties in interest from later arguing to the Court that
cause exists to terminate the Exclusive Periods.
Counsel to the Debtors:
MCDERMOTT WILL & EMERY LLP
Felicia Gerber Perlman, Esq.
Bradley Thomas Giordano, Esq.
Jake Jumbeck, Esq.
Carole Wurzelbacher, Esq.
Carmen Dingman, Esq.
444 West Lake Street, Suite 4000
Chicago, Illinois 60606-0029
Telephone: (312) 372-2000
Facsimile: (312) 984-7700
Email: fperlman@mwe.com
bgiordano@mwe.com
jjumbeck@mwe.com
cwurzelbacher@mwe.com
cdingman@mwe.com
- and -
MCDERMOTT WILL & EMERY LLP
Steven Z. Szanzer, Esq.
One Vanderbilt Avenue
New York, New York 10017
Telephone: (212) 547-5400
Facsimile: (212) 547-5444
Email: sszanzer@mwe.com
MCDERMOTT WILL & EMERY LLP
Marcus A. Helt, Esq.
2501 N. Harwood Street, Suite 1900
Dallas, Texas 75201-1664
Telephone: (214) 295-8000
Facsimile: (972) 232-3098
Email: mhelt@mwe.com
About Wellpath Holdings
Wellpath Holdings, Inc., formerly known as CCS-CMGC Holdings, Inc.,
is a provider of medical and mental healthcare in jails, prisons,
and inpatient and residential treatment facilities.
Wellpath Holdings and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case
No. 24-90533) on Nov. 11, 2024. Timothy Dragelin, chief
restructuring officer and chief financial officer, signed the
petitions.
At the time of the filing, the Debtors reported $1 billion to $10
billion in assets and liabilities.
Judge Alfredo R. Perez oversees the cases.
The Debtors tapped Marcus A. Helt, Esq. at McDermott Will & Emery,
LLP as bankruptcy counsel; FTI Consulting, Inc., as financial
advisor; and Lazard Freres & Co., LLC and MTS Partners, LP as
investment banker.
WERNER FINCO: S&P Alters Outlook to Stable, Affirms 'B-' ICR
------------------------------------------------------------
S&P Global Ratings revised its outlook on Itasca, Ill.-based Werner
FinCo L.P.'s (d/b/a ProDriven Global Brands [ProDriven]) to stable
from negative and affirmed its 'B-' issuer credit rating.
S&P maintained its '3' (60%) recovery rating on the company's $400
million senior secured notes due 2028 and its '6' (0%) recovery
rating on the junior-lien exchange notes due 2028.
The stable outlook reflects S&P's expectation for adjusted net
leverage of 6x-7x over the next 12 months.
S&P said, "We expect the company to sustain its earnings in 2025
such that S&P Global Ratings-adjusted leverage remains in the 6x-7x
range. We expect ProDriven to end fiscal 2025 with 1%-2% higher
revenues and 0%-1% higher adjusted earnings when the company
reports its fiscal 2025 results. Favorable price realization,
operating efficiencies, as well as improved sales primarily in
North America have all resulted in improved operating performance
over the past 12 months, which we view as sustainable. This
improvement, combined with the company's ability to generate
positive operating and free operating cash flow have resulted in
adjusted leverage improving to the 6x-7x range from 7.7x at the end
of 2023. While we believe somewhat challenging business conditions
over the next 12 months could possibly cause some earnings and
margins compression, we believe the company can still sustain
credit measures through continued price realization so that
adjusted leverage remains in the 6x-7x range."
Raw material cost inflation may pressure ProDriven's margins. Cost
inflation, specifically for aluminum and steel, could pressure the
company's earnings over the next few quarters given the recent
announcements around possible tariff policy changes. S&P believes
the sustainability of ProDriven's earnings in 2025 will depend on
its ability to pass through these potential rising costs to its
customers. The company has commodity hedges in place that help
offset price swings, as well as a pricing index built into its
major contracts. However, if there is a sudden and large change in
its raw material costs, ProDriven may experience earnings
volatility given the lag inherent in the price implementations in
its contracts.
S&P said, "We view ProDriven's liquidity position as adequate with
no material maturities before 2028. ProDriven refinanced its
capital structure in 2023 to improve its debt maturity schedule and
enhance its liquidity. Both ProDriven's $400 million senior secured
notes and its $262 million junior lien secured notes (as of Sep.
2024) mature in 2028. ProDriven's $14.2 million senior unsecured
notes (the residual amount from its senior unsecured notes issued
in 2017 that was not exchanged for junior lien secured notes in
2023) are current and mature in July 2025. We believe the company's
liquidity is sufficient to address the current maturity when due.
"The stable outlook on ProDriven indicates our view of adjusted
leverage sustained between 6x and 7x and EBITDA interest coverage
near 1.5x in 2025. We believe the company could sustain these
credit metrics, even amid a less favorable demand and pricing
environment."
S&P could lower its ratings on ProDriven within the next 12 months
if:
-- S&P views the company's capital structure as unsustainable,
demonstrated by adjusted leverage approaching 10x, EBITDA interest
coverage close to 1x or negative free cash flows. Such a scenario
could occur in the case of a severe downturn that drastically
reduces demand for the company's products or margins decline
significantly; or
-- S&P believes the company faces significant liquidity or
refinancing risks such that it is unable to address its upcoming
maturities within two years of the debt coming due.
S&P could raise its rating on ProDriven within the next 12 months
if:
-- The company's earnings improved such that adjusted leverage
declines to well under 6x and EBITDA interest coverage is
comfortably above 1.5x, and S&P expects these measures could be
maintained even in tougher economic and business conditions and S&P
believes the sponsors are committed to maintaining credit measures
at these levels; and
-- S&P believes that the company does not face significant
liquidity or refinancing risks related to its 2028 debt
maturities.
WHIDBEY ISLAND PHD: Moody's Confirms B1 Rating on 2013 GOULT Bonds
------------------------------------------------------------------
Moody's Ratings has confirmed Whidbey Island Public Hospital
District, WA's (dba Whidbey Health) outstanding general obligation
unlimited tax (GOULT) bonds (Series 2013) at B1. Moody's also
confirmed the district's general obligation limited tax (GOLT)
bonds (Series 2009 and Series 2012) at Caa1. As of fiscal 2023, the
district had about $76 million in total outstanding debt.
This rating action concludes the review with direction uncertain
that was initiated on December 19, 2024 prompted by a lack of
sufficient information.
RATINGS RATIONALE
The B1 GOULT rating incorporates the district's history of uneven
operating performance and weak liquidity. While the district's cash
levels are expected to remain sufficient to meet its debt payments
and operational needs over the year, its low liquidity levels
(about 27 days cash on hand projected at the end of fiscal 2025),
leave it vulnerable to even a minor financial disruption. The
district's ability to maintain liquidity over the long term at
sufficient levels for its mid-size operations will be a key point
of focus in future reviews. The GOULT bonds benefit from an
unlimited tax levy that is collected only for repayment of the
bonds and the rating reflects Moody's expectations that debt
service for the district's GOULT bonds will likely continue
uninterrupted. The rating also incorporates the district's large
and growing tax base ($18.7 billion in assessed value as of 2023),
solid full value per capita levels (roughly $216,398) and average
median family income (about 108.3%) and the stabilizing presence of
Naval Air Station Whidbey Island. The overall debt burden is
relatively modest with minimal pension liabilities.
The Caa1 rating on the GOLT bonds reflects the general credit
characteristics of the hospital district, as well as the full faith
and credit pledge of the district. Per the district's most recent
cash projections for 2025, liquidity will remain low but at levels
that are sufficient to meet its operational needs and fulfill its
debt obligations.
The three-notch distinction between the GOULT and GOLT bonds
reflects Moody's views that the GOLT bonds are more exposed to the
significant overall operating and enterprise risks of the hospital
district itself. The GOLT bonds are paid through all available
operating revenues, including the "regular" operating levy.
RATING OUTLOOK
Moody's do not assign outlooks to local governments with this
amount of debt outstanding.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Sustained strengthening of cash on hand to levels above 40
days
-- Demonstrated ability to continue to improve patient volumes
resulting in stronger revenue and financial performance on a
sustained basis
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Weakening of operating performance and/or a reduction in
liquidity below expected levels without access to additional
sources of liquidity or a line of credit
-- Default on any outstanding obligations
-- Insolvency or bankruptcy of the district
PROFILE
Whidbey Island Public Hospital District operates a 25 bed critical
access hospital, seven satellite clinics, an ambulance service and
a few related other health care services on Whidbey Island in Puget
Sound, 65 miles north of Seattle. The district's boundaries are
coterminous with Whidbey Island and it serves a population of about
86,700 residents (per the 2023 American Community Survey) in Island
County, WA.
METHODOLOGY
The principal methodology used in these ratings was US Special
Purpose District General Obligation Debt published in February
2025.
WHOLESALE CAR: Gets Final OK to Use Cash Collateral
---------------------------------------------------
Wholesale Car Buying, LLC received final approval from the U.S.
Bankruptcy Court for the Eastern District of Michigan to use cash
collateral.
The final order authorized the company to use its secured
creditors' cash collateral to pay its operating expenses and grant
the secured creditors replacement liens on its post-petition
assets, with the same priority as their pre-bankruptcy liens.
The secured creditors are Automotive Financial Corp., the U.S.
Small Business Administration, Antipana Credit Union, BCA Capital
Thoro Corp., NextGear Financial, Inc., and Frankenmuth Credit
Union.
Wholesale Car Buying was ordered to carve out the sum of $1,500 per
month for the payment of administrative expenses.
The company's authority to use cash collateral terminates upon the
occurrence of so-called events of default, including failure to
abide by the terms and conditions of the final order, failure to
pay expenses, or cessation of operations.
About Wholesale Car Buying
Based in Saginaw, Mich., Wholesale Car Buying, LLC sells a variety
of vehicles.
Wholesale Car Buying filed Chapter 11 petition (Bankr. E.D. Mich.
Case No. 25-20043) on January 13, 2025, listing total assets of
$434,394 and total liabilities $1,342,755. Mark Shapiro of
Steinberg, Shapiro & Clark serves as Subchapter V trustee.
Judge Daniel S. Oppermanbaycity oversees the case.
The Debtor is represented by George E. Jacobs, Esq., at Bankruptcy
Law Offices, in Flint, Mich.
WILLIAM LAY: Gets Final OK to Use Cash Collateral
-------------------------------------------------
William Lay DDS, PLLC received final approval from the U.S.
Bankruptcy Court for the Northern District of Texas, Fort Worth
Division, to use the cash collateral of Centennial Bank.
The final order authorized William Lay DDS to use cash collateral
to pay the expenses set forth in its budget, with a 10% variance
allowed.
The budget projects total operational expenses of $56,111.46 for
March; $58,381.58 for April; and $55,356.59 for May.
Centennial Bank, doing business as Happy State Bank, asserts an
interest in the cash collateral.
As protection, the secured lender will be granted replacement liens
on William Lay DDS' accounts, equipment and inventory and will
continue to receive a monthly payment of $3,000.
In addition, Centennial Bank will be paid $500 per month for the
use of its equipment.
About William Lay DDS PLLC
William Lay DDS, PLLC is a dental practice based in Arlington,
Texas.
William Lay DDS filed Chapter 11 petition (Bankr. N.D. Texas Case
No. 25-40202) on January 20, 2025, listing between $100,000 and
$500,000 in assets and between $1 million and $10 million in
liabilities.
Judge Mark X. Mullin handles the case.
The Debtor is represented by Robert Thomas DeMarco, Esq., at
DeMarco-Mitchell, PLLC.
Centennial Bank, as secured lender, is represented by:
Jeff Carruth, Esq.
Weycer, Kaplan, Pulaski & Zuber, P.C.
2608 Hibernia, Suite 105
Dallas, TX 75204-2514
Telephone: (713) 341-1158
Fax: (713) 961-5341
Email: jcarruth@wkpz.com
WILLOUGHBY EQUITIES: Creditor Twist Realty Files Liquidating Plan
-----------------------------------------------------------------
Secured creditor Twist Realty LLC filed with the U.S. Bankruptcy
Court for the Eastern District of New York a Plan of Liquidation
for Willoughby Equities, LLC, dated March 3, 2025.
The Debtor's exclusive period to file a plan has expired, and the
Debtor failed to file a plan. Accordingly, the Plan Proponent
hereby proposes a plan of liquidation of the Debtor.
The Plan Proponent proposes to appoint Allan B. Mendelsohn, Esq. as
plan administrator (the "Plan Administrator") to sell the Debtor's
real property, commonly known as 599 Willoughby Avenue, Brooklyn,
New York 11206, identified as Block 1760, Lot 72, in the Borough of
Brooklyn (the "Property") and to investigate any and all causes of
actions on behalf of the Debtor's estate.
The Plan provides that in the event that there are insufficient
sale proceeds from the sale of the Property to pay Twist Realty's
claim in full, then Twist Realty will fund the Carve Out, which
provides for a $10,000.00 distribution to General Unsecured
Creditors.
Class 7 consists of Allowed General Unsecured Claims. Allowed
General Unsecured Claims shall be paid a Pro Rata distribution in
accordance with the Carve Out in the sum of $10,000.00 put up by
the Plan Proponent, but not more than their Allowed Claims, without
interest. Payment to Class 7 Claimants shall be remitted on the
Distribution Date. The Class 7 Claimants are impaired and are
eligible to vote on the Plan.
Class 8 consists of allowed Equity Interest Claims. In the event
there are sufficient sale proceeds to pay all prior classes in full
with statutory interest, Class 8 Claimants shall retain their
existing pre-petition Equity Interests in the Debtor effective as
of the Effective Date. In the event that there are insufficient
sale proceeds for same, the Class 8 Claimants shall not retain
their Equity Interests in the Debtor, their Equity Interests will
be extinguished, and they are deemed to reject the Plan. Since it
is highly unlikely that there will be any distributions to Allowed
Equity Interest Claims, the Class 8 Claimants are impaired.
The Plan shall be funded by the proceeds from the sale of the
Property. In the event that there are insufficient Net Sale
Proceeds, the Plan Proponent shall pay Allowed Administrative
Claims, Priority Tax Claims, and United States Trustee's fees and
will fund a distribution to General Unsecured Creditors in the
amount of $10,000.00 in accordance with the Carve Out.
A full-text copy of the Liquidating Plan dated March 3, 2025 is
available at https://urlcurt.com/u?l=S2MWLY from PacerMonitor.com
at no charge.
Counsel to Twist Realty LLC:
Law Offices of Avrum J. Rosen, PLLC
Avrum J. Rosen, Esq.
Alex E. Tsionis, Esq.
38 New Street
Huntington, New York 11743
Tel: (631) 423-8527
Email: arosen@ajrlawny.com
atsionis@ajrlawny.com
About Willoughby Equities
Willoughby Equities is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)). The Debtor is the owner of
real property located at 599-601 Willoughby St. valued at $3
million.
Willoughby Equities LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-44217)
on Oct. 10, 2024. In the petition filed by Abraham Lowenstein, as
president/sole member, the Debtor reported total assets of
$3,000,000 and total liabilities of $2,864,604.
Bankruptcy Judge Jil Mazer-Marino handles the case.
The Debtor is represented by:
Eric Snyder, Esq.
WILK AUSLANDER LLP
825 Eight Avenue
Suite 2900
New York, NY 10019
Tel: (212) 981-2300
Fax: (212) 752-6380
E-mail: esnyder@wilkauslander.com
WOLVERINE WORLD: S&P Alters Outlook to Stable, Affirms 'B' ICR
--------------------------------------------------------------
S&P Global Ratings revised its outlook to stable from negative and
affirmed its 'B' issuer credit rating on U.S.–based footwear
company Wolverine World Wide Inc.
At the same time, S&P affirmed its 'B+' issue-level rating on the
senior secured debt with a '2' recovery rating and the 'B-'
issue-level rating on the senior unsecured notes with '5' recovery
rating.
The stable outlook reflects S&P's expectation that the company will
modestly improve its topline and EBITDA growth in the next 12
months, such that adjusted leverage improves to the mid- to high-4x
area by the end of 2025.
The outlook revision reflects the meaningful improvement in
leverage and our expectation for modest topline and EBITDA growth,
such that adjusted leverage improves to the mid- to high-4x area by
the end of 2025. In the fourth quarter of 2024, revenue for the
ongoing businesses inflected to growth and grew 3% year over year.
Merrell revenue grew 1% year over year and Saucony revenue
inflected to growth of 7% year over year. For Saucony, this
excluded the Kids and China joint venture business model changes
and was due to better-than-expected demand in the performance run
and lifestyle expansion.
Adjusted EBITDA margin increased 500 basis points (bps) in 2024,
reflecting supply chain and product cost savings, improved mix of
full price sales, and lapping restructuring costs and costs from
divestiture. In addition to EBITDA growth, the company applied its
free operating cash flow (FOCF) and proceeds from asset sales
toward debt reduction and meaningfully reduced its total debt by
around $270 million in 2024. As a result, the company meaningfully
deleveraged to 5.3x by the end of 2024 from 9.2x by the end of
2023.
Wolverine says it has completed the stabilization phase of its
turnaround plan and now is in the transformation and
inflect-to-growth stage. S&P said, "We expect topline to grow 2% in
2025, driven mainly by Saucony, reflecting the category's momentum,
new launches in both performance and lifestyle products, and
expanded distribution. We expect EBITDA margin to expand 40 bps due
to more full-price sales and product cost and SG&A savings,
partially offset by investments to support topline growth.
Therefore, we project the company to further improve adjusted
leverage to about 4.6x by the end of 2025."
S&P said, "We anticipate positive FOCF of more than $60 million in
2025 as the company builds up inventory to support topline growth.
Wolverine generated $160 million of FOCF in 2024 due to the
improvement in EBITDA as well as working capital improvement.
Inventory at the end of the fourth quarter was $241 million, down
36% year over year, due to improved planning and execution. We
expect modest inventory build up to support topline growth in 2025
and forecast working capital to be a modest drag on FOCF in 2025.
Wolverine’s $800 million revolver and $200 million term loan
($32.5 million outstanding at the end of 2024) become current in
October 2025. The term loan is relatively small and the company can
pay it off if needed. We expect the company will address the
maturity and refinance in the near term without materially
weakening its FOCF by higher borrowing costs.
"We believe Wolverine is moderately exposed to tariff risk. The
company has reduced its production in China to around mid-teens
percentage at the end of 2024 from about 40% at the end of 2019,
and plans to further reduce its exposure to China. We believe its
exposure to Mexico and Canada is limited. Overall, we anticipate
tariffs will have a modest impact on the company’s margin in
2025. Specifically, we believe the company would mitigate the
impact of tariffs on its performance by transferring its production
within its global supply chain, increasing its pricing, or
implementing other cost saving actions over time.
"The stable outlook reflects our expectation that the company will
modestly improve its topline and EBITDA growth in the next 12
months, such that adjusted leverage improves to the mid- to high-4x
area by the end of 2025."
S&P could lower our ratings if the company is unable to refinance
on satisfactory terms or its operating performance deteriorates,
such that adjusted leverage rises to and sustains above 7x. This
could occur if:
-- There is increasing competition in the industry and
accelerating share loss in the challenging macro-economic
environment.
-- The company pursues aggressive financial policy with
debt-funded share repurchases and acquisitions.
S&P could raise its ratings if the company continues to improve its
operating performance by prioritizing growth brands and focusing on
profit improvement, such that adjusted leverage sustains below 5x.
This could occur if:
-- New products resonate well with consumers and the company
sustains market share gains.
-- Consumer demand improves and the company improves profit
through its margin improvement and cost saving initiatives.
The company sustains positive discretionary cash flow and continues
to prioritize debt repayment from free cash flow generation.
XTI AEROSPACE: Issues 180K Shares of Stock to Streeterville Capital
-------------------------------------------------------------------
XTI Aerospace, Inc., filed a Form 8-K with the Securities and
Exchange Commission that the Company issued an aggregate of 180,847
shares of common stock to Streeterville Capital, LLC, the holder of
that certain outstanding secured promissory note of the Company
issued on May 1, 2024, at a price between $2.48 and $3.34 per
share, in each case equal to the Minimum Price as defined in Nasdaq
Listing Rule 5635(d) in accordance with the terms and conditions of
Exchange Agreements, dated February 26, 2025 and March 5, 2025,
pursuant to which the Company and the Note Holder agreed to (i)
partition new secured promissory notes in the form of the Original
Note in the aggregate original principal amount of $500,000.00 and
then cause the outstanding balance of the Original Note to be
reduced by an aggregate of $500,000.00; and (ii) exchange the
partitioned notes for the delivery of the Exchange Shares.
The offer and sale of the Exchange Shares was not registered under
the Securities Act of 1933, as amended, in reliance on an exemption
from registration under Section 3(a)(9) of the Securities Act, in
that (a) the Exchange Shares were issued in exchanges for
partitioned notes which are other outstanding securities of the
Company; (b) there was no additional consideration of value
delivered by the Note Holder in connection with the exchanges; and
(c) there were no commissions or other remuneration paid by the
Company in connection with the exchanges.
As of March 5, 2025, the Company had 3,722,340 shares of common
stock outstanding.
On February 1, 2025, the Company entered into a public relations
and branding agreement with a public relations firm, pursuant to
which the Company agreed to issue to the PR Firm, as partial
compensation for public relations services, 25,000 unregistered
shares of common stock, subject to the approval of the Company's
board of directors.
On March 7, 2025, the Company entered into an investor relations
agreement with an investor relations firm, pursuant to which the
Company agreed to issue to the IR Firm, as partial compensation for
investor relations services, 8,500 unregistered shares of common
stock subject to the Board's approval.
Subject to the Board's approval, the Shares will be issued in
reliance on an exemption from registration provided by Section
4(a)(2) and/or Rule 506 of Regulation D of the Securities Act. The
issuances of such Shares do not involve a public offering or
general solicitation or general advertising. The PR Firm and the IR
Firm each acknowledged that it had access to all relevant
information needed to make its investment decision, and that it
possesses sufficient knowledge and experience in financial and
business matters so as to be capable of assessing the merits and
risks of its investment in the PR Firm Shares and the IR Firm
Shares, as applicable. The Shares will be subject to transfer
restrictions, and the book-entry records evidencing the Shares will
contain an appropriate legend stating that such Shares have not
been registered under the Securities Act and may not be offered or
sold absent registration or pursuant to an exemption therefrom.
About XTI Aerospace
XTI Aerospace, Inc. -- https://xtiaerospace.com -- is the parent
company of XTI Aircraft Company headquartered near Denver,
Colorado. XTI Aerospace is developing the TriFan 600, a vertical
lift crossover airplane (VLCA) that combines the vertical takeoff
and landing (VTOL) capabilities of a helicopter with the speed and
range of a fixed-wing business aircraft. The TriFan 600 is
designed to reach speeds of 345 mph and a range of 700 miles.
Additionally, the Inpixon (inpixon.com) business unit of XTI
Aerospace is a provider of real-time location systems (RTLS)
technology with customers around the world who use the Company's
location intelligence solutions in factories and other industrial
facilities to help optimize operations, increase productivity, and
enhance safety.
New York-based Marcum LLP, the Company's auditor since 2012,
issued
a "going concern" qualification in its report dated April 16,
2024,
citing that the Company has a significant working capital
deficiency, has incurred significant losses, and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
The Company incurred net losses from continuing operations of
approximately $34.4 million and $19.7 million for the fiscal years
ended Dec. 31, 2023 and 2022, respectively.
As of Sept. 30, 2024, the Company has a working capital deficit of
approximately $11.9 million, and cash of approximately $0.5
million. For the nine months ended Sept. 30, 2024, the Company had
a net loss of approximately $21.7 million. During the nine months
ended Sept. 30, 2024, the Company used approximately $14.3 million
of cash for operating activities.
"If we are unable to obtain adequate financing or financing on
terms satisfactory to us, when we require it, our ability to
continue to pursue our business objectives and to respond to
business opportunities, challenges, or unforeseen circumstances
could be significantly limited, which could have a material
adverse
effect on our business, results of operations, and financial
condition," the Company stated in its Quarterly Report for the
period ended Sept. 30, 2024.
In several instances in the past, including as recently as on July
9, 2024, the Company received written notification from Nasdaq
informing it that because the closing bid price of its common
stock
was below $1.00 for 30 consecutive trading days, its shares no
longer complied with the minimum closing bid price requirement for
continued listing on Nasdaq under the Nasdaq Listing Rules. Each
time, the Company was given a period of 180 days from the date of
the notification to regain compliance with Nasdaq's listing
requirements by having the closing bid price of its common stock
listed on Nasdaq be at least $1.00 for at least 10 consecutive
trading days.
[] AlixPartners Names Koza Co-Leader of Restructuring Practice
--------------------------------------------------------------
AlixPartners, the global consulting firm, on March 25, 2025,
announced that Eric Koza has been named Global Co-Leader of
Turnaround & Restructuring Services (TRS), joining Jim Mesterharm
in this role. Together they will oversee a global team of 500
professionals advising troubled and underperforming companies,
senior executives, boards of directors, and creditors across the
Americas, EMEA, Asia, and rest of world. Joff Mitchell, who was
previously Global Co-Leader of TRS, has been appointed to serve as
Global Vice Chair of AlixPartners.
The firm also announced the appointment of John Castellano and Dave
Orlofsky as Americas Co-Leaders of Turnaround & Restructuring. Mr.
Castellano has been with the firm for almost 27 years and is a
highly experienced practitioner in guiding companies through
complex reorganizations. He is deeply respected across the firm and
by clients. Mr. Orlofsky is also a senior leader within TRS and has
over 25 years of restructuring experience, providing both interim
management and advisory services across various industries.
Commenting on these exciting changes, Jim Mesterharm said:
"I'm delighted to welcome Eric to his new global leadership role.
With 25 years of industry experience, including 12 years at
AlixPartners--most recently as Co-Leader of TRS North
America--Eric's breadth of experience and deep knowledge of the
business will provide exceptional guidance to organizations
worldwide facing operational and financial challenges. And I am
very pleased to welcome John and Dave to our TRS leadership team,
and I thank them for taking on this important leadership role. Both
John and Dave have sterling reputations inside and outside the firm
for their commitment to helping our clients navigate the complex
financial landscape and drive transformative change." Mr.
Mesterharm continued, "I would like to recognize Joff's impressive
30-year career in restructuring and thank him for his ongoing
commitment to AlixPartners as he continues to be a driving force
for our firm. Joff is widely recognized for his exceptional
leadership and business acumen, delivering successful outcomes for
our clients."
Commenting on the announcements, Eric Koza said:
"I'm honored and humbled at the opportunity to lead our global team
into the future. Partnering with Jim and our exceptional advisors,
I am confident that together we will perpetuate the success of our
practice as we help clients with their operational restructuring
needs around the world." Mr. Koza added, "Given their extensive
experience, we know that John and Dave will enable our TRS Americas
team to meet the growth ambitions and potential we see in the
market."
Mr. Mitchell's reputation as an innovative executive who embodies
exceptional leadership and exemplary business acumen has been
widely recognized. He was named Global Turnaround Consultant of the
Year by Global M&A Network. Mr. Mitchell has advised some of the
largest and most complex acquisitions, debt financing,
restructurings, and successful bankruptcy reorganizations,
including The Commonwealth of Puerto Rico, Swissport, (recognized
as the International Turnaround of the year by TMA Awards), Toisa,
Sabine Oil and Gas, and Dewey & LeBoeuf. He was inducted as a
Fellows in the American College of Bankruptcy. Prior to joining
AlixPartners, he was Managing Partner of Zolfo Cooper until 2018
and was instrumental in Zolfo's acquisition by AlixPartners.
After ensuring a smooth transition of his current TRS
responsibilities, in his new role, Mr. Mitchell will join
AlixPartners' other Vice Chairs to help drive the firm's continued
success. His focus will include strengthening client relationships,
developing our people, and supporting market growth through
strategic initiatives, such as expanding our referral channels and
providing senior leadership on key assignments. He will also play
an instrumental role in supporting strategy development,
acquisitions, and other special projects across all practice
groups.
About AlixPartners
AlixPartners -- https://www.alixpartners.com -- is a results-driven
global consulting firm that specializes in helping businesses
successfully capitalize on opportunity and address critical
challenges. Its clients include companies, corporate boards, law
firms, investment banks, private equity firms, and others. Founded
in 1981, AlixPartners is headquartered in
New York and has offices in more than 20 cities around the world.
*********
Monday's edition of the TCR delivers a list of indicative prices
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