/raid1/www/Hosts/bankrupt/TCR_Public/250328.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, March 28, 2025, Vol. 29, No. 86
Headlines
23ANDME HOLDING: Court Okays DNA Data Sale Amid Privacy Concerns
2426 UNIVERSITY: Public Sale Auction Set for April 3
4504 15 AND 1476: Voluntary Chapter 11 Case Summary
75 ESSEX CORNER: Voluntary Chapter 11 Case Summary
75 RI LLC: Case Summary & Six Unsecured Creditors
ABC TECHNOLOGIES: Fitch Assigns 'BB-' LongTerm IDR, Outlook Stable
ALLECOM CORP: Seeks Chapter 11 Bankruptcy in Texas
ALLO ISSUER: Fitch Gives 'BB-(EXP)sf' Rating on Class C Notes
ARCADIA BIOSCIENCES: Reveals Lower Net Loss of $7 Million for 2024
AZEK COMPANY: Fitch Puts 'BB' LongTerm IDR on Watch Positive
AZUCAR RESTAURANTS: Lisa Holder Named Subchapter V Trustee
AZUL SECURED: Fitch Rates $525MM Secured Notes Due 2030 'CCC'
BAMBI HEALTH: Seeks to Hire Cross & Simon as Bankruptcy Counsel
BRIGHTMARK PLASTICS: Gets Interim OK to Obtain DIP Loan
BROWN & BROWN: Gets Interim OK to Use Cash Collateral
CARROLLCLEAN LLC: Seeks to Sell Tangible Property at Auction
CATHOLIC FAITH: Seeks Chapter 11 Bankruptcy in Kansas
CEC ENTERTAINMENT: S&P Assigns Prelim 'B-' Rating on Secured Notes
CHAR GRILL: Gets Extension to Access Cash Collateral
CHUNGA-JINGA: Voluntary Chapter 11 Case Summary
CITRUS360 LLC: Seeks to Hire Kurt Stephen as Legal Counsel
CONCORDE METRO: Seeks Chapter 11 Bankruptcy in Puerto Rico
COWAN FITNESS: Seeks Subchapter V Bankruptcy in Texas
CXOSYNC LLC: Court Extends Cash Collateral Access to April 25
DAATS COMPANIES: Seeks Cash Collateral, DIP Loan
DECO GROUP: Jarrod Martin Named Subchapter V Trustee
DIGITAL GRAPHICS: Gets Final OK to Use Cash Collateral
DIOCESE OF CAMDEN: Aims to Settle Abuse Settlement Plan Disputes
DMMJ REALTY: Hires Davidoff Hutcher & Citron LLP as Attorney
DOCUDATA SOLUTIONS: U.S. Bank Steps Down as Committee Member
DUN & BRADSTREET: S&P Places 'B+' ICR on CreditWatch Negative
ELECTROCORE INC: Posts $11.9 Million Net Loss in 2024
ELEVATE PFS: S&P Upgrades ICR to 'B-', Outlook Stable
ELITE SURGERY: Gets Interim OK to Use Cash Collateral
ENVISION CIVIL: Seeks Subchapter V Bankruptcy in North Carolina
EVOFEM BIOSCIENCES: Posts $8.86M Loss in 2024, Warns of Bankruptcy
EVOFEM BIOSCIENCES: To Cut PHEXXI Mfg Costs by 60% in Windtree Deal
FIREFLY NEUROSCIENCE: CEO Gregory Lipschitz Reports Stock Holdings
FIREFLY NEUROSCIENCE: CFO Reports Stock Option Ownership
FIREFLY NEUROSCIENCE: Chairman Arun Menawat Reports Stock Holdings
FIREFLY NEUROSCIENCE: David DeCaprio Reports Stock Option Ownership
FIREFLY NEUROSCIENCE: Reshuffles Board, Grants Equity Awards to CFO
FIRST MODE: Gets Court Confirmation for Chapter 11 Plan
FOOTHILL AND TOWNE: Taps Law Offices of Stephen R. Wade as Counsel
FREIRICH FOODS: Court Extends Cash Collateral Access to May 2
FRUGALITY INC: Jodi Daniel Dubose Named Subchapter V Trustee
GARZA COUNTY, TX: S&P Lowers GO Debt Long-Term Rating to 'BB+'
GFL ENVIRONMENTAL: S&P Raises Sr. Unsecured Notes Rating to 'BB-'
GO LAB: April 2 Deadline Set for Panel Questionnaires
HANSEN KIDS: Seeks to Use Cash Collateral
HARRCO TRANSPORTATION: Linda Leali Named Subchapter V Trustee
HARRCO VAN LINES: Linda Leali Named Subchapter V Trustee
HEALTH DRIP: Seeks Chapter 11 Bankruptcy in Texas
HELIUS MEDICAL: Reports $11.7M 2024 Loss, Faces Funding Uncertainty
HIGHRISE ELECTRICAL: Voluntary Chapter 11 Case Summary
HOYA MIDCO: S&P Alters Outlook to Stable, Affirms 'B+' ICR
HUMPER EQUIPMENT: Seeks to Hire Avek IP LLC as Special Counsel
INCLAN PAINTING: Class 3 Unsecureds to Get 10% over 60 Months
INJAWE INC: Court Denies Bid to Use Cash Collateral
JAC RENTALS: Seeks Subchapter V Bankruptcy in Louisiana
JAGUAR HEALTH: CEO, Board, and Investors Commit to $3.4M in Funding
LEADPOINT INC: Deadline to File Claims Set for April 11, 2025
LFR31 VENTURES: Christy Brandon Named Subchapter V Trustee
LIGADO NETWORKS: Deadline to File Claims Set for April 17, 2025
LJB LLC: Trustee Taps Verdolino & Lowey as Accountant
LOCAL EATERIES: Files Emergency Bid to Use Cash Collateral
LONERO ENGINEERING: Court OKs Deal to Extend 'Challenge Period'
MAINE CRAFT: Seeks Subchapter V Bankruptcy in Maine
MANA GROUP: Case Summary & 20 Largest Unsecured Creditors
MAPRAGENCY INC: Hires Allen Vellone Wolf Helfrich as Counsel
MAPRAGENCY INC: Kevin Neiman Named Subchapter V Trustee
MARKUS CORP: Ira Bodenstein Named Subchapter V Trustee
MARTIN MIDSTREAM: S&P Affirms 'B' ICR, Outlook Stable
MAVENCRUX I LLC: Seeks to Hire Brookshire Appraisal as Appraiser
MIKE JACKSON: Jerrett McConnell Named Subchapter V Trustee
MOORE HOLDINGS: Hires The Bankruptcy Group P.C. as Attorney
NAPLES ALF: U.S. Trustee Unable to Appoint Committee
NEUEHEALTH INC: Narrows Net Loss of $99.72 Million in 2024
NEW LEDA LANES: Gets Interim OK to Use Cash Collateral Until May 5
ON POINT DIRECTIONAL: Hires Watlington Law Firm as Special Counsel
ONE FAT FROG: Trustee Taps Noble & Noble P.A. as Accountant
OPTINOSE INC: Reports Decreased Net Loss of $21.54 Million for 2024
OUTKAST ELECTRICAL: Court Extends Cash Collateral Access to May 12
PAVMED INC: Posts $31.97M Income for 2024, Has Going Concern Doubts
PICCARD PETS: U.S. Trustee Unable to Appoint Committee
PINSEEKERS DEFOREST: Gets OK to Obtain Loan, Use Cash Collateral
PIVOTAL MED: Seeks to Hire Thames Markey P.A. as Special Counsel
POPELINO'S TRANSPORTATION: Gets Interim OK to Use Cash Collateral
PREMIER TILLAGE: Gets Interim OK to Use Cash Collateral
PREST PROPERTIES: Seeks Chapter 11 Bankruptcy in New York
PROPERTY PROBLEM: Gets Interim OK to Use Cash Collateral
PURE AVIATION: Sec. 341(a) Meeting of Creditors on April 24
QS PROFESSIONALS: Leon Jones Named Subchapter V Trustee
RADIANT ONE: Gets Interim OK to Use Cash Collateral Until April 3
RADIX HAWK: Seeks Chapter 11 Bankruptcy in Florida
RDB MANAGEMENT: Lender Seeks to Prohibit Cash Collateral Access
REED'S INC: Director Quits Over Governance Concerns, Investor Plans
SAS GROUP: Case Summary & 20 Largest Unsecured Creditors
SASAS HOSPITALITY: Hearing to Use Cash Collateral Set for April 2
SCANROCK OIL: Seeks to Hire Jobe Law PLLC as Legal Counsel
SCANROCK OIL: Seeks to Hire Lain Faulkner & Co as Accountant
SCANROCK OIL: Seeks to Hire Munsch Hardt Kopf & Harr as Attorney
SCANROCK OIL: Taps Brad Walker as Chief Restructuring Officer
SHARK CLUB: Property Sale Proceeds to Fund Plan Payments
SILVERROCK DEVELOPMENT: Asks Court to Unwind Pre-Ch. 11 Equity Deal
SK INDUSTRIES: U.S. Trustee Unable to Appoint Committee
SKYBIRD HOSPITALITY: Yann Geron Named Subchapter V Trustee
SKYX PLATFORMS: Board Amends Bylaws; Annual Meeting Set for July 9
SKYX PLATFORMS: Has $35.77M Loss in 2024, Faces Going Concern Doubt
SKYX PLATFORMS: Secures $1M Investment Via Preferred Stock Sale
SOUTH REGENCY: Gets Interim OK to Use Cash Collateral
SPHERE 3D: Settles Litigation With Gryphon Digital Mining
SPIN HOLDCO: CION Marks $9.9 Million 1L Loan at 15% Off
SPINAL USA: CION Marks $1 Million Loan at 48% Off
SPINAL USA: CION Marks $1.5 Million Loan at 48% Off
SSS MILWAUKEE: Hearing to Use Cash Collateral Set for April 2
STARWOOD PROPERTY: Fitch Gives BB+(EXP) Rating on $400M Unsec Notes
STATINMED LLC: CION Marks $12.4 Million 1L Loan at 63% Off
SUNNOVA ENERGY: Revises EZOP Credit Facility
SWAN PIZZA: Gets Interim OK to Use Cash Collateral Until May 8
TEKNATOOL USA: Gets Interim OK to Use Cash Collateral
TITAN ENVIRONMENTAL: Raises $1MM From Preferred Stock Offering
TRAVELERS XPRESS: Aleida Martinez Molina Named Subchapter V Trustee
TRISTATE DEVELOPMENT: Case Summary & Three Unsecured Creditors
US COATING: To Sell Vehicle to Nyjel Andreas for $65,000
VICTORY HOLDING: Voluntary Chapter 11 Case Summary
VIEWBIX INC: Acquires Metagramm, Issuing 1.32M Shares in Exchange
W.D. TOWNLEY: Case Summary & 20 Largest Unsecured Creditors
WATTS CHOPPING: Hires Young Wooldridge as Bankruptcy Counsel
XEROX HOLDINGS: S&P Affirms 'B+' ICR on New Financing Facilities
XYZ HOME: Gets Final OK to Use Cash Collateral
YELLOW CORP: Reaches Provisional Bankruptcy Exit Deal w/ Creditors
ZEVRA THERAPEUTICS: Posts $105.5 Million Net Loss in 2024
[] BOOK REVIEW: Bailout: An Insider's Account of Bank Failures
*********
23ANDME HOLDING: Court Okays DNA Data Sale Amid Privacy Concerns
----------------------------------------------------------------
Steven Church of Bloomberg News reports that a bankruptcy judge has
authorized 23andMe Holding Co. to move forward with selling
customer medical and ancestry data -- its most valuable asset --
despite ongoing privacy and security concerns.
As part of the sale process, bidders must submit definitive offers
by May 7, 2025 with a final hearing scheduled for June. However,
U.S. Bankruptcy Judge Brian C. Walsh extended the timeline by two
weeks to allow creditors to weigh in before approving a buyer.
23andMe, which has struggled financially since going public in
2021, filed for Chapter 11 protection on March 23 after failing to
secure a buyer. The company's genetic database -- built from DNA
samples of over 15 million customers -- has become central to the
bankruptcy, raising concerns over how the sensitive information
might be used.
During Wednesday's hearing, Carole J. Ryczek of the U.S. Trustee's
office urged the court to appoint a privacy ombudsman to oversee
the sale and protect consumer data. 23andMe's legal team argued
that oversight was unnecessary, citing the company's privacy
policies and assurances that any buyer must comply with applicable
laws.
The bankruptcy case also seeks to address legal fallout from a 2023
data breach that compromised information from roughly seven million
users, including direct access to 14,000 accounts. The company now
faces around 35,000 claims related to the incident.
Following news of the potential data sale, several state attorneys
general issued consumer alerts instructing users on how to delete
their genetic information. The surge in deletion requests
temporarily overwhelmed 23andMe's website, though the company later
confirmed the issue had been resolved.
Judge Walsh, overseeing his first major bankruptcy case, stressed
the need to balance urgency with caution. The court will reconvene
next month to consider final approval of financing to support
23andMe through its restructuring.
The case is 23andMe Holding Co., 25-40976, U.S. Bankruptcy Court,
Eastern District of Missouri (St. Louis).
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.
2426 UNIVERSITY: Public Sale Auction Set for April 3
----------------------------------------------------
US Bank National Association, as trustee for the registered holders
of JP Morgan Chase Commercial Mortgage Securities Corp.,
Multifamily Mortgage Pass-Through Certificates, Series 2018-SB47,
acting by and through its special services, Berkeley Point Capital
LLC dba Newmark, as special servicer under the Pooling and
Servicing agreement dated as of March 1, 2018, Plaintiff against
2426 University Fund LLC; Avraham Benamram, et al. Defendants.
Pursuant to that certain consensual final judgement dated and
entered March 9, 2025, 1, Orazio Crisalli, court-appointed referee,
will sell at public auction outside the front entrance of the
property located at and known as 228 E. Tremont Avenue, Bronx, New
York on April 3, 2025, at 10:00 a.m., prevailing Eastern Time,
premises situate, lying and being in the Borough and County of the
Bronx, City and State of New York, bounded and described as
follows: Beginning at a point on the southerly side of Tremont
Avenue, distant 268 feet easterly from the corner formed by the
intersection of the southerly side of Tremont Avenue with the
easterly side of Monroe Avenue; Running Thence southerly at right
angles to the southerly side of Tremont Avenue and part of the way
through a party will, 83.76 feet to the southerly side of Lot No.
25 on a map of south Fordham, being the easterly part of the farm
of Lewis G. Morris, Esq. and the westerly side of the farm of Jacob
Buckhout filed Oct. 7, 21853 as Map No. 189; Thence easterly along
the southerly side of Lot No. 25, 42.85 feet to the median line of
said Lot. No. 25; Thence northerly along said median line, 83.52
feet to the southerly line of Tremont Avenue, and Thence westerly
along the southerly line of Tremont Avenue, 41.96 feet to the point
or place of beginning, on the Tax Map of Bronx County, New York,
Block, 2804, Lot 19.
Said premises to be sold is known as 228 E. Tremont Avenue, Bronx,
New York 10468.
The approximate amount of the lien is $2,300,380.51 plus default
interest & costs.
The premises will be sold subject to filed judgment and forthcoming
sales terms.
The undersigned will accept the highest bid offer by a bidder and
will require that successful bidder to (i) provide proper
government-issued identification, (ii) immediately execute terms of
sale for the purchase of the collateral, and (iii) pay by certified
or bank check 10% of the sum bid, made payable to "Orazio Crisalli,
as referee."
Matthew D. Mannion is the court-apppinted auctioneer. Mr. Mannion
can be reached at (212) 267-6698 or mdmannion@jpandr.com.
Counsel for the plaintiffs is Holland & Knight LLP located at 787
Seventh Avenue, 31st Floor, New York, New York 10019.
4504 15 AND 1476: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: 4504 15 and 1476 45 Equity Partners LLC
4403 15th Avenue, Suite 314
Brooklyn NY 11219
Business Description: The Debtor is involved in activities related
to real estate.
Chapter 11 Petition Date: March 26, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-41415
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: Joshua R. Bronstein, Esq.
JOSHUA R. BRONSTEIN & ASSOCIATES, PLLC
114 Soundview Drive
Port Washington NY 11050
Tel: 516-698-0202
E-mail: jbrons5@yahoo.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Nechemia Weinberger as member.
The Debtor did not provide a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/6NTROWI/4504_15_and_1476_45_Equity_Partners__nyebke-25-41415__0001.0.pdf?mcid=tGE4TAMA
75 ESSEX CORNER: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: 75 Essex Corner LLC
4403 15th Avenue
#314
Brooklyn NY 11219
Business Description: 75 Essex Corner is a single asset real
estate debtor, as defined in 11 U.S.C.
Section 101(51B).
Chapter 11 Petition Date: March 25, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-41388
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: Joshua R. Bronstein, Esq.
JOSHUA R. BRONSTEIN & ASSOCIATES, PLLC
114 Soundview Drive
Port Washington NY 11050
Tel: 516-698-0202
E-mail: jbrons5@yahoo.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Nechemia Weinberger as member.
The Debtor did not provide a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/O5O7M6Y/75_Essex_Corner_LLC__nyebke-25-41388__0001.0.pdf?mcid=tGE4TAMA
75 RI LLC: Case Summary & Six Unsecured Creditors
-------------------------------------------------
Debtor: 75 RI LLC
75 Rhode Island Ave., NW
Washington, DC 20001
Business Description: 75 RI LLC owns two properties: the first,
located at 1901 1st St. NW, Washington, DC
20001, is valued at approximately $4.28
million, and the second, located at 75 Rhode
Island Avenue NW, Washington, DC 20001,
consists of a townhouse adjacent to the
Church and is valued at $750,000.
Chapter 11 Petition Date: March 26, 2025
Court: United States Bankruptcy Court
District of Columbia
Case No.: 25-00108
Debtor's Counsel: William C. Johnson, Jr., Esq.
THE JOHNSON LAW GROUP, LLC
6305 Ivy Lane
Suite 630
Greenbelt, MD 20770
Tel: (301) 477-3450
Fax: (301) 477-4813
Email: William@JohnsonLG.Law
Total Assets: $5,025,028
Total Liabilities: $4,150,300
The petition was signed by Jeff Levin as managing member.
A full-text copy of the petition, which includes a list of the
Debtor's six unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/EAPW7JA/75_RI_LLC__dcbke-25-00108__0001.0.pdf?mcid=tGE4TAMA
ABC TECHNOLOGIES: Fitch Assigns 'BB-' LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has assigned ABC Technologies Holdings Inc., and its
subsidiaries, ABC Technologies Inc., ABC Group Holdings Inc. and TI
Group Automotive Systems LLC a first-time 'BB-' Long-Term Issuer
Default Rating (IDR). Fitch has also assigned a 'BB+' rating with a
Recovery Rating of 'RR1' to ABC's senior secured term loan B and
revolver which is issued by ABC Technologies Holdings Inc.'s
subsidiaries. The Rating Outlook is Stable.
ABC's ratings reflect its position as a leading Tier 1 supplier of
safety and performance critical products to automotive
manufacturers globally. The ratings are supported by the company's
highly variable cost structure, low-single-digit free cash flow
margin, mid-teens EBITDA margins and sub-3x leverage profile. The
ratings also consider the diversification of ABC's post-acquisition
business across products, customers and geographies and the cost
synergies expected to be achieved over the next 24 months.
Key Rating Drivers
TI Acquisition Diversifies Business Profile: The pending TI Fluid
Systems acquisition will create a larger and more diversified
company (NewCo), with a product portfolio that is primarily
powertrain agnostic. Fitch expects NewCo's content on key original
equipment manufacturer (OEM) platforms to support low-single-digit
growth over market over the longer term. NewCo's customer base will
be well diversified, with no OEM accounting for more than 15% of
revenue.
Fitch believes the nature of NewCo's products result in high
customer switching costs, providing revenue consistency. NewCo's
financial profile will be further supported by an estimated $106
million of synergy cost savings to be realized within two years of
closing, driven by a variety of cost and commercial activities.
EBITDA Leverage 3.0x, Coverage 4.0x: Fitch expects NewCo's pro
forma EBITDA leverage will be around 3.0x at closing, while pro
forma EBITDA interest coverage will be around 4.0x. Fitch expects
both metrics to modestly strengthen over the intermediate term due
to improving light vehicle production, favorable product mix and
increasing content-per-vehicle. Pre-transaction EBITDA leverage
will increase from 2.8x and interest coverage will decline from
8.0x at FY24 due to the higher debt incurred to fund the
acquisition.
Resilient Free Cash Flow: Fitch expects NewCo's free cash flow
(FCF) margins to remain in the low-single-digit range ($150
million-$200 million) for several years, driven by its working
capital conversion cycle forecast. Historically, ABC has improved
working capital inflows by lowering inventory levels and extending
payable terms, even during revenue growth. Fitch forecasts NewCo's
FCF conversion at about 20%, which will help support the company's
elevated capex requirements. Moreover, NewCo's through-the-cycle
FCF resilience is supported by its variable cost structure and its
ability to reduce program capex in periods of weaker demand and
reduced new launches.
Tariffs Present Mild Business Risk: NewCo has historically passed
on cost impacts to customers during inflationary periods, and Fitch
expects it will manage potential tariffs on raw materials
similarly. If tariffs lead to reduced vehicle volumes or OEMs shift
production internationally, NewCo can leverage its flexible cost
structure to adapt to volume impacts. Additionally, its favorable
market position, diversified geographic presence and global
footprint allow adaption to production shifts. NewCo's diversified
customer base further mitigates exposure to OEMs affected by
tariffs.
Favorable Position in Cyclical Industry: ABC's ratings incorporate
the company's position as a top supplier in a cyclical industry
characterized by volatile raw material costs and intense
competition. The company's relatively favorable position as a
significant supplier to most global auto manufacturers reduces its
business risk, as does its product profile, which is primarily
powertrain agnostic. However, unlike some auto suppliers, NewCo
does not have a meaningful aftermarket business, leaving it reliant
on more cyclical OEM production and making it more vulnerable to
potential customer supply chain constraints and macroeconomic
headwinds that influence vehicle demand.
Peer Analysis
NewCo has a relatively strong market position among Tier 1
automotive suppliers, with many products linked to vehicle safety
and performance, and strong relationships with many global OEMs. In
contrast, certain suppliers, such as Tenneco Inc. (B/Positive) or
PHINIA Inc., which both derive a substantial portion of their
revenue from ICE products, most of NewCo's product portfolio is
powertrain agnostic. However, unlike PHINIA, Tenneco, Clarios
International Inc. (B/Stable) or The Goodyear Tire & Rubber Company
(BB-/Negative), NewCo does not have a meaningful aftermarket
business, which makes it more exposed to volatility in OEM
production.
NewCo's revenue and EBITDA margins are lower than certain other
Tier 1 automotive suppliers, such as BorgWarner Inc. (BBB+/Stable)
or American Axle & Manufacturing Holdings, Inc., largely due to
those suppliers' focus on higher value-add products, which gives
them more pricing power. However, NewCo's highly flexible cost
structure and its working capital conversion cycle results in
resilient FCF margins.
Despite its lower EBITDA margins, NewCo's EBITDA leverage runs
1x-2x lower than American Axle's (3.8x) or Goodyear's (4.9x), and
reflects its favorable cash flow profile, which mitigates its need
to access external sources of liquidity. Fitch expects that NewCo's
cash flow will continue to be sufficient to fund its capex
requirements as the company increases its content-per-vehicle and
platform diversification to drive above-market growth.
Key Assumptions
- Revenue grows in the low-single-digit range over the forecast
period, in-line with vehicle production;
- EBITDA margins rise through the forecast period, driven by
favorable product mix and improved pricing, as well as cost
synergies fully realized over 24 months;
- Capex runs at about 5.0% of revenue throughout the forecast;
- No material M&A or sponsor dividends;
- Fitch SOFR interest rate assumptions: 4.5% in 2025, 4.25% in
2026, 4.0% in 2027 and 4.0% in 2028.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Mid-cycle EBITDA leverage sustained over 3.0x;
- Loss of contracts, reduced OEM volumes or an inability to manage
cost inflation leading to EBITDA margins declining below 7.0%,
- Inability to effectively manage working capital or shift in
capital allocation resulting in FCF margins sustained below 1%.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Successful integration execution of the acquisition and
realization of cost synergies leading to through-the-cycle EBITDA
margins over 14%;
- Commitment to a financial policy leading to mid-cycle EBITDA
leverage sustained below 2.5x;
- Increased content-per-vehicle and platform diversification
resulting in above-market growth;
- Demonstrated effective working capital management and adherence
to credit-conscious capital allocation policy that support
through-the-cycle financial flexibility, including FCF margins over
2.0%.
Liquidity and Debt Structure
NewCo intends to use proceeds from a new $500 million senior
secured revolver, $900 million senior secured term loan and about
$1.3 billion of other senior secured debt to redeem all its
existing debt and any debt outstanding at TI, as well as to pay any
fees and expenses in connection with the acquisition of TI. Pro
forma of the transaction, NewCo's debt structure will consist of
$2.3 billion senior secured debt, and its liquidity is expected to
be supported by $100 million of cash and $445 million available
under its revolver.
Issuer Profile
ABC is a global Tier 1 automotive supplier highly engineered
components, serving a diverse set of global OEMs.
Date of Relevant Committee
11 March 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
----------- ------ --------
ABC Group Holdings Inc. LT IDR BB- New Rating
senior secured LT BB+ New Rating RR1
TI Group Automotive
Systems LLC LT IDR BB- New Rating
senior secured LT BB+ New Rating RR1
ABC Technologies
Holdings Inc. LT IDR BB- New Rating
ABC Technologies Inc. LT IDR BB- New Rating
senior secured LT BB+ New Rating RR1
ALLECOM CORP: Seeks Chapter 11 Bankruptcy in Texas
--------------------------------------------------
On March 24, 2025, AllEcom Corp. filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Southern District of Texas.
According to court filing, the Debtor reports $3,310,215 in
debt owed to 1 and 49 creditors. The petition states funds will
not be available to unsecured creditors.
About AllEcom Corp.
AllEcom Corp. is a subcontractor for FedEx, providing specialized
services to support its operations.
AllEcom Corp. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Tex. Case No. 25-31569) on March 24, 2025. In
its petition, the Debtor reports total assets of $306,082 and total
debts of $3,310,215.
The Debtor is represented by Anabel King, Esq. at WAUSON|KING.
ALLO ISSUER: Fitch Gives 'BB-(EXP)sf' Rating on Class C Notes
-------------------------------------------------------------
Fitch Ratings expects to rate ALLO Issuer, LLC's Secured Fiber
Network Revenue Notes, series 2025-1 as follows:
- $110.0 million 2025-1 class A-2 'Asf'; Outlook Stable;
- $30.1 million(a) 2025-1 class B 'BBBsf'; Outlook Stable;
- $59.9 million(a) 2025-1 class C 'BB-sf'; Outlook Stable.
The ratings on all existing notes are expected to be affirmed
concurrently with the transaction close and the assignment of final
ratings.
Entity/Debt Rating
----------- ------
ALLO Issuer, LLC
Secured Fiber
Network Revenue
Notes, Series
2025-1
A-2 LT A(EXP)sf Expected Rating
B LT BBB(EXP)sf Expected Rating
C LT BB-(EXP)sf Expected Rating
R LT NR(EXP)sf Expected Rating
The following class is not expected to be rated by Fitch:
- $10.8 million(b) series 2025-1, class R.
(a) The class B and C note balances include $90 million of
prefunding amounts. Fitch's expected ratings take into account the
range of prefunding amounts that may be issued in connection with
the transaction.
(b) Horizontal credit risk retention interest representing 5% of
the 2025-1 notes.
Transaction Summary
The transaction is a securitization of the contract payments
derived from an existing fiber to the home (FTTH) network. Debt is
secured by the net revenue of operations and benefits from a
perfected security interest in the underlying assets, which include
conduits, cables, network-level equipment, access rights, customer
contracts, transaction accounts and an equity pledge from the asset
entities.
The collateral includes high-quality fiber lines providing
internet, cable and telephone services to a network of
approximately 132,343 retail customers located across 27 markets in
Nebraska, Arizona and Colorado. These markets represent
approximately 88.4% of the company's total revenue as of January
2025. Approximately 51.0% of annualized run rate revenue (ARRR) is
located in Lincoln, NE, with 92.4% of ARRR attributable to markets
in the state of Nebraska.
Since the 2024-1 issuance of notes, one additional issuer-defined
market in Arizona has been included in the trust. The additional
collateral comprises 5.23% of transaction revenue and passes over
51,323 locations with a weighted average (WA) penetration rate of
approximately 15.6%, compared to the WA penetration of 40% for all
contributed markets.
Transaction proceeds will be utilized to pay down the outstanding
balance of the series 2023-1 A-1-V and fund the series 2025-1
prefunding account and applicable securitization transaction
reserves. The proceeds will also be used to pay transaction fees
and for general corporate purposes, which may include a
distribution to the parent for growth capital expenditures. A
cashout dividend is not expected.
With the 2025-1 issuance, there is a springing amendment to the
indenture changing the waterfall such that the class C interest is
paid before class A and B principal in certain post-ARD scenarios
including after the 2023 and 2024 series are repaid. See Fitch's
presale report for additional information.
The ratings reflect a structured finance analysis of the cash flows
from the ownership interest in the underlying fiber optic network,
not an assessment of the corporate default risk of the ultimate
parent, ALLO Communications LLC.
KEY RATING DRIVERS
Net Cash Flow and Trust Leverage: Fitch's net cash flow (NCF) on
the pool is $95.1 million in the base case, implying a 14.6%
haircut to issuer base case NCF as of the January 2025 payment
date. The debt multiple relative to Fitch's NCF on the rated
classes is 9.7x in this scenario, versus the debt/issuer NCF
leverage of 8.3x.
Inclusive of the prefunding and the cash flow required to draw on
the maximum variable funding note (VFN) commitment of $150 million,
the Fitch NCF on the pool is $119.0 million, implying a 15.3%
haircut to issuer NCF. The debt multiple relative to Fitch's NCF on
the rated classes is 9.7x, compared with the debt/issuer NCF
leverage of 8.3x.
Credit Risk Factors: The major factors impacting Fitch's
determination of cash flow and maximum potential leverage (MPL)
include the high quality of the underlying collateral networks,
scale of the network, market concentration, the market position of
the sponsor, capability of the operator, higher barriers to entry
and strength of the transaction structure.
Technology-Dependent Credit: Due to the specialized nature of the
collateral and potential for changes in technology to affect
long-term demand for digital infrastructure, the senior classes of
this transaction do not achieve ratings above 'Asf'. The securities
have a rated final payment date 30 years after closing, and the
long-term tenor of the securities increases the risk that an
alternative technology will be developed that renders obsolete the
current transmission of data through fiber optic cables. Fiber
optic cable networks are currently the fastest and most reliable
means to transmit information, and data providers continue to
invest in and utilize this technology.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Declining cash flow as a result of higher expenses, contract
churn, contract amendments or the development of an alternative
technology for the transmission of data could lead to downgrades;
- Fitch's base case NCF is 14.6% below the issuer's underwritten
cash flow. A further 10% decline in Fitch's NCF indicates the
following ratings based on Fitch's determination of MPL: class A-2
from 'Asf' to 'BBBsf', class B from 'BBBsf' to 'BB+sf', and class C
from 'BB-sf' to 'Bsf'.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Increasing cash flow without an increase in corresponding debt
from rate increases, additional contracts, contract amendments, or
expense reductions could lead to upgrades;
- A 10% increase in Fitch's base case NCF indicates the following
ratings based on Fitch's determination of MPL: class A-2 from 'Asf'
to 'Asf', class B from 'BBBsf' to 'Asf', and class C from 'BB-sf'
to 'BB+sf';
- Upgrades are unlikely for these transactions given the provision
for the issuer to issue additional notes, which rank pari passu or
subordinate to existing notes, without the benefit of additional
collateral. In addition, the transaction is capped in the 'Asf'
category, given the risk of technological obsolescence.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
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.
ARCADIA BIOSCIENCES: Reveals Lower Net Loss of $7 Million for 2024
------------------------------------------------------------------
Arcadia Biosciences, Inc., filed its annual report on Form 10-K
with the Securities and Exchange Commission, disclosing a net loss
of $7.04 million on total revenues of $5.05 million for the year
ending Dec. 31, 2024. This represents an improvement compared to
the previous year, when the Company posted a net loss of $13.99
million on total revenues of $4.45 million.
As of Dec. 31, 2024, the Company had total assets of $13.52
million, total liabilities of $7.29 million, and total
stockholders' equity of $6.22 million.
In its report dated March 25, 2025, the Company's auditor, Deloitte
& Touche LLP, issued a "going concern" qualification, citing that
the Company's accumulated deficit, recurring net losses, and net
cash used in operations raise substantial doubt about the Company's
ability to continue as a going concern. Additionally, the auditor
noted that the Company's resources would not be sufficient to meet
its anticipated cash requirements.
Since its formation in 2002, Arcadia has incurred significant net
losses and expects to continue doing so for the foreseeable future.
As of Dec. 31, 2024, the Company had an accumulated deficit of
$278.9 million. Net cash used in operations was $9.6 million and
$15.3 million for the years ended Dec. 31, 2024 and 2023,
respectively. The Company anticipates that if it is unable to
adequately control the costs associated with operating the
business, including the costs of development and commercialization
of its traits, its business, financial condition, operating
results, and prospects will suffer.
Arcadia has primarily financed its operations through equity and
debt financings since inception. As of Dec. 31, 2024, the Company
had cash and cash equivalents of $4.2 million. The Company expects
that its existing cash and cash equivalents will not be sufficient
to meet its anticipated cash requirements for at least the next 12
months from the issuance date of the financial statements.
The Company has indicated that it may seek additional funds through
debt or equity financings or explore entering into additional
partnership arrangements. However, the sale of additional equity
would dilute the Company's stockholders, and incurring debt would
introduce debt service obligations and potentially restrict
operations due to financing covenants. If the Company is unable to
secure adequate funding on agreeable terms, it may be forced to
reduce spending, extend payment terms with suppliers, liquidate
assets, or suspend or curtail planned product launches. Any of
these actions could significantly harm the Company's business,
results of operations, and financial condition.
"If we are not able to obtain additional required equity or debt
funding, our cash resources would be significantly limited and
could become depleted, and we could be required to materially
reduce or suspend operations, or seek dissolution and liquidation,
or bankruptcy protection," the Company warned. "No assurance can
be given as to the timing or ultimate success of obtaining future
funds."
The full text of the Form 10-K is available for free at:
https://www.sec.gov/Archives/edgar/data/1469443/000095017025044487/rkda-20241231.htm
About Arcadia Biosciences Inc.
Headquartered in Dallas, TX, Arcadia Biosciences is a producer and
marketer of innovative, plant-based health and wellness products.
Since its inception in 2002, it has worked on creating
next-generation wellness products, particularly by enhancing wheat
with unique nutritional profiles, including increased fiber,
improved protein quality, fewer calories, reduced gluten, and
extended shelf stability. Their portfolio also includes Zola
Coconut Water, a hydrating beverage that is Non-GMO, low in
calories, and rich in electrolytes. The Company collaborates with
food manufacturers to create healthier wheat-based products.
AZEK COMPANY: Fitch Puts 'BB' LongTerm IDR on Watch Positive
------------------------------------------------------------
Fitch Ratings has placed The AZEK Company Inc and The AZEK Group
LLC (AZEK) Long-Term Issuer Default Ratings (IDRs) of 'BB' and all
issue-level ratings on Rating Watch Positive (RWP).
The Rating Watch follows the announcement that AZEK is to be
acquired by James Hardie Industries plc (James Hardie;
BBB/Negative). Under the terms of the agreement, AZEK shareholders
will receive $26.45 in cash and 1.034 ordinary shares of James
Hardie for each AZEK share at closing.
Fitch expects the transaction to significantly enhance the combined
company's scale, geographic footprint, and customer and product
portfolio, strengthening the robustness of profitability and cash
flows. Fitch anticipates resolving the Rating Watch upon the
closure of the transaction, which is expected in 2H25. Fitch will
continue to monitor the transaction for insights into the final
post-transaction capital structure.
Key Rating Drivers
Combination of AZEK and JHX : AZEK announced an agreement to be
acquired by James Hardie for a total transaction value of $8.75
billion, representing a 22.4x EBITDA multiple based on AZEK's LTM
EBITDA of $390 million. The combined entity's pro forma revenues
are projected to reach approximately $5.9 billion, with an EBITDA
over $1.4 billion before synergies.
Fitch views the proposed combination as beneficial to AZEK's
business profile as it improves the company's scale, expands its
product offerings to include a wider range of exterior siding
products, and strengthens global geographic diversification,
increasing exposure to international markets beyond North America.
Weaker Credit Metrics: Fitch views the combined entity as having
weaker credit metrics, with EBITDA leverage on a pro forma basis of
around 3.7x (excluding any synergies), compared to AZEK's
standalone EBITDA leverage of 1.2x for the LTM ended Dec. 31, 2024.
The combined entity is targeting a leverage ratio below 2.0x net
debt to EBITDA by the end of the second full fiscal year after the
transaction closes.
Weak Demand Environment: Fitch expects continued demand weakness in
AZEK's end markets through at least calendar year 2025. Fitch
expects overall repair and remodeling (R&R) spending to remain flat
in 2025, with a more pronounced decline in large discretionary
product categories, and housing starts are expected to be slightly
weaker this year. However, Fitch expects the combined entity to
benefit from higher pricing and a continued shift toward engineered
outdoor products and fiber cement siding, which should mitigate the
expected volume weakness in the intermediate term.
High Profitability: AZEK's profitability is reflected in its Fitch-
calculated EBITDA margin of 25.5% in fiscal 2024. Fitch expects
this metric to remain between 24.5% and 25.5% in fiscal 2025. On a
combined basis, the Fitch-calculated EBITDA margin is around 26.3%,
excluding any potential cost synergies. AZEK reported a FCF margin
of 9.9% in 2024, down from the high-double digits in 2023,
resulting from an increase in working capital and higher taxes.
Leading Market Position: Fitch believes the combined entity will
benefit from economies of scale and the innovative product
offering, enabling it to maintain strong pricing and above-average
margins compared to its peers. James Hardie is a global leader in
manufacturing fiber cement siding and backerboard, benefiting from
its pricing power and an extensive distribution channel. AZEK, on
the other hand, is a leading player in the residential outdoor
living market. Fitch considers it one of the top brands in the
decking category and expects the company to capitalize on long-term
shift away from traditional materials, such as wood, to drive
above-market growth.
Strong Platform to Mitigate Some Cyclicality: Demand for
residential outdoor living and home exteriors is closely tied to
home R&R activities, which are sensitive to interest rates and the
availability of home equity. Fitch anticipates that the combined
entity will benefit from a long-term trend away from traditional
exterior materials to low-maintenance, engineered options. About
70% of combined sales are from the more stable R&R segment. Fitch
views this exposure positively, although its products are generally
higher-priced and more discretionary in nature.
Material Weakness in Internal Controls: Management identified
material weaknesses in the company's internal control over
financial reporting. The company is designing and implementing
remediation plans to address the causes. An independent
investigation revealed that a former employee misstated inventory
through inaccurate and unsupported manual journal entries. This led
to an overstatement of inventory and an understatement of cost of
sales. Consequently, the financial statements for fiscal years
2023, 2022 and 2021, as well as prior periods, were restated.
Peer Analysis
AZEK is smaller in terms of revenues and less-geographically
diversified than building products manufacturers like MasterBrand,
Inc. (BB+/Stable), James Hardie International Group Ltd.
(BBB/Negative), and Standard Building Solutions (BB/Stable).
However, AZEK's credit metrics are stronger than those of
MasterBrand, significantly stronger than those of Standard and
similar to those of James Hardie.
AZEK's end-market diversification is similar to those of
MasterBrand, James Hardie, and Standard. Like the products of
MasterBrand and James Hardie, AZEK's products are more
discretionary in nature and generally part of larger, more costly
remodel projects.
AZEK holds a strong market position in North America for
residential composite outdoor living, with an estimated 30% share
of the composite decking and railing market, which translates to 6%
of the overall market. In contrast, MasterBrand holds the #1 market
position in North American residential cabinets, with an estimated
22% share of the overall market.
The 'BB' IDR reflects AZEK's leading market position in sustainable
outdoor living products, favorable end-market mix, positive FCF
generation and conservative financial policies. The IDRs also
incorporate AZEK's exposure to largely discretionary demand,
limited product offering, and aggressive share repurchase program.
Key Assumptions
- Revenue grows organically 5%-6% in 2025 and 2026;
- EBITDA margin of 24.5% - 25.5% in 2025 and 2026;
- Capex of around 6%-8% of revenue in 2025 and 2026;
- FCF margin of 9%-10% in 2025 and 10%-11% in 2026;
- FCF applied towards share repurchases;
- EBITDA leverage of 1.0x-1.5x at fiscal YE 2025 and fiscal YE 2026
due to EBITDA growth.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Sustained erosion of revenue and EBITDA due to meaningful and
continued loss of market share, including loss of key distributors,
and/or sustained materials cost pressures that result in EBITDA
margins falling to the low-double digits;
- Fitch's expectation that EBITDA leverage will sustain above
3.5x;
- (CFO-capex)/debt sustained below 5%.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch expects to resolve the RWP upon the completion of the
contemplated transaction under proposed terms;
If the transaction does not close, positive ratings action/upgrade
could result from:
- EBITDA margin sustained at or above 20%;
- (CFO-capex)/debt sustained above 8%;
- Remediation of the material weaknesses in internal control over
financial reporting;
- Fitch's expectation that EBITDA leverage will sustain below
3.0x;
- Company increases its size and/or expands its product portfolio
while maintaining a majority of sales to the remodel market.
Liquidity and Debt Structure
AZEK had a strong liquidity position, with $148.1 million of cash
as of Dec. 31, 2024 and approximately $372.7 million available
under its $375 million RCF.
AZEK has a well-distributed debt maturity schedule to minimize
near-term refinancing risks, with a $375 million revolver maturing
in 2029 and $440 million term loan B maturing in 2031.
Additionally, the term loan has a quarterly amortization of 0.25%
of the principal amount until it matures in 2031.
Issuer Profile
The AZEK Company Inc. is a designer and manufacturer of low
maintenance and environmentally sustainable outdoor living
products, including TimberTech decking, Versatex and AZEK Trim, and
StruXureTM pergolas.
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 AZEK Company Inc has an ESG Relevance Score of '4' for
Financial Transparency due to material weakness in the company's
internal control and restatements of certain financial statements,
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
----------- ------ -------- -----
The AZEK Group LLC LT IDR BB Rating Watch On BB
senior secured LT BBB- Rating Watch On RR1 BBB-
The AZEK Company Inc LT IDR BB Rating Watch On BB
AZUCAR RESTAURANTS: Lisa Holder Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 17 appointed Lisa Holder, Esq., a
practicing attorney in Bakersfield, Calif., as Subchapter V trustee
for Azucar Restaurants, LLC.
Ms. Holder will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Holder declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Lisa Holder, Esq.
3710 Earnhardt Drive
Bakersfield, CA 93306
Phone: (661) 205-2385
Email: lholder@lnhpc.com
About Azucar Restaurants LLC
Azucar Restaurants LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 25-20969) on
March 3, 2025, with $100,001 to $500,000 in assets and
liabilities.
Judge Ronald H. Sargis presides over the case.
David C. Johnston, Esq. represents the Debtor as legal counsel.
AZUL SECURED: Fitch Rates $525MM Secured Notes Due 2030 'CCC'
-------------------------------------------------------------
Fitch Ratings has assigned a rating of 'CCC' with a Recovery Rating
of 'RR4' to Azul Secured Finance LLP's USD525 million super
priority secured notes due 2030.
Fitch currently rates Azul S.A., the guarantor of the notes, with
Long-Term Foreign and Local Currency Issuer Default Rating (IDRs)
of 'CCC' and a Positive Rating Outlook. The Positive Outlook
reflects expectations of Azul's credit profile strengthening in the
short to medium term due to cash flow improvements and potential
liquidity events from its restructuring plan. High leverage,
limited financial flexibility and industry risks remain rating
constraints.
Key Rating Drivers
Debt Agreement Qualified as DDE: On Jan. 28, 2025, Azul announced
the conclusion of its broad refinancing agreement involving its
main creditors and suppliers, including the exchange offer for its
existing 2029 and 2030 notes. The total amount reached around
BRL5.4 billion, out of a total debt of BRL30.7 billion as of Sept.
30, 2024.
Per its criteria, Fitch views this as a distressed debt exchange
(DDE). The deal was assessed to avoid default. Despite no immediate
debt haircut or maturity extension, bondholders who did not accept
the deal faced worse terms due to the larger secured debt profile
and lower returns from the equitization of part of the 2029 and
2030 notes. Azul also announced the completion of a USD525 million
superpriority notes issuance, a precedent condition for the
restructuring deal.
Lessors and OEM Agreement: Azul reached commercial agreements with
lessors and OEMs totaling approximately USD557 million in exchange
for 96 million new AZUL4 preferred shares in a one-time issuance to
be completed in the first quarter of 2025. The process involves
extinguishing USD244 million of existing notes held by certain
lessors and OEMs and exchanging the remaining 2030 lessor/OEM notes
for new unsecured notes due in 2032, with an option to pay interest
in kind.
These agreements included a financing condition tied to ongoing
negotiations with bondholders and the ability to raise new debt.
According to Azul, this agreement will improve cash flow by
approximately USD300 million over 2025, 2026 and 2027.
Agreement with Bondholders: Azul secured the current USD525 million
superpriority funding agreement with bondholders, including USD150
million provided in November 2024 that has been fully paid. This
involved equitizing USD785 million of new 2029 and 2030 notes into
preferred shares: 35.0% of the new exchange notes by April 30,
2025, and 12.5% upon completing an equity offering raising at least
USD200 million. The remaining 52.5% will be exchanged by April 30,
2025, into new exchangeable notes with 4.0% cash interest plus 6.0%
payment in kind.
Successful Restructuring to Improve Liquidity: Besides the new
USD525 million issuance, Azul is looking for an opportunity to
raise additional cash from a potential follow-on equity issuance
and other sources of liquidity, including ABGF (Agencia Brasileira
Gestora de Fundos Garantidores e Garantias). Fitch believes these
events still carry execution risk as they depend on market
conditions and are not entirely within management's control and
cannot assume this as its base case scenario. Azul's ability to
enhance its liquidity and manage refinancing risks in the short to
medium term could further benefit its ratings.
Cash Flow Burn: Azul faced multiple challenges such as BRL
devaluation, an approximate 10% revenue loss due to Rio Grande do
Sul flooding, and delays in receiving new aircraft, all of which
pressured its operating cash flow generation during 2024. These
factors, along with high interest, rental payments and capital
expenditures, result in recurring negative free cash flow. EBITDA
generation reached around BRL6 billion in 2024, and Fitch expects
it to move closer to BRL7.2 billion in 2025. Lease rental,
interest, and capex are projected to total BRL8 billion in 2025.
Effective Deleveraging Expected Late 2025: Azul's leverage is
expected to peak in 2024 and decline through 2025, reaching 4.5x by
2026, according to Fitch's estimates. Improvements in EBITDA
generation are expected to restore its credit profile in the medium
term. Fitch's base case forecasts total and net adjusted
leverage/EBITDAR ratios of 6.2x and 6.0x, respectively, in 2024,
decreasing to 5.0x and 4.7x, respectively, in 2025 and 4.7x and
4.5x, respectively, in 2026. Fitch calculates Azul's total debt at
BRL37 billion by year-end Dec. 31, 2024.
Potential Merger with GOL: The current rating scenarios do not
incorporate any consolidation movement. Azul has been vocal about
its strategy to consolidate the market and is considering a
potential transaction with GOL Linhas Aereas Inteligentes S.A.
(currently undergoing Chapter 11 proceedings in the U.S.). The
final terms of the deal and the pro forma capital structure of the
combined entity remain unclear. Once information is available Fitch
will reassess the impact on Azul's ratings post-merger.
Peer Analysis
Azul has a weaker position relative to global peers given its
limited geographic diversification, higher operating leverage and
weaker financial flexibility. In terms of regional peers, it has a
weaker position than LATAM Airlines Group S.A.(BB-/Positive) and
Avianca Group International Limited (B/Stable) in business
diversification, liquidity and financial flexibility. In contrast
to LATAM and Avianca, Azul has not completed a debt haircut as part
of its post-pandemic restructuring.
Azul's strong position in the Brazilian regional market and high
operating margins have been major rating drivers. FX risk is a
negative credit factor, considering its limited geographic
diversification. The company employs currency hedging, which only
partially mitigates this risk.
Fitch expects LATAM and Avianca to maintain gross leverage of about
2.5x and 3.5x, respectively, in the next two years, while Azul's
credit metrics should be around 4.5x in 2024. Azul's leasing and
interest burden and capex program significantly increase the risks
associated with funding its sizable negative FCF.
Key Assumptions
- Fitch's base case during 2025 and 2026 includes an increase in
ASK by 6% and 11%, respectively, and in RPK of 6% and 10%,
respectively;
- Load factors around 80%-81% during 2025 and 2026;
- Adjusted EBITDAR margins of around 30%-32% in 2025 and 2026;
- Capex of BRL1.4 billion in 2025 and BRL2.0 billion in 2026.
Recovery Analysis
The recovery analysis assumes that Azul would be considered a going
concern in bankruptcy and that the company would be reorganized
rather than liquidated. Fitch has assumed a 10% administrative
claim.
Going Concern Approach
Azul's going concern EBITDA is BRL2.5 billion, which incorporates
the low-end expectations of Azul's EBITDA post-pandemic, adjusted
by lease expenses, and a discount of 20%. The going concern EBITDA
estimate reflects its view of a sustainable, post-reorganization
EBITDA level on which Fitch bases the valuation of the company. The
enterprise value (EV)/EBITDA multiple applied is 5.5x, reflecting
Azul's strong market position in Brazil.
Fitch applies a waterfall analysis to the post-default EV, based on
the relative claims of the debt in the capital structure. The debt
waterfall assumptions consider the company's total debt as of Dec.
31, 2024. These assumptions result in a recovery rate for the
first-lien and superpriority secured bonds within the 'RR1' range
and second-lien secured notes within the 'RR2' range. However, due
to the soft cap of Brazil at 'RR4', Azul's senior secured notes are
rated at 'CCC'/'RR4'. For the unsecured notes, the recovery is in
the 'RR6' range, resulting in a rating of 'CC'/'RR6'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Liquidity deterioration and/or difficulties in continuing to
access credit lines;
- Gross and net leverage ratios consistently above 6.5x and 6.0x,
respectively;
- EBITDA fixed-charge coverage sustained at or below 1x;
- Competitive pressures leading to severe loss in market share or
yield deterioration;
- Aggressive growth strategy leading to consolidation movement
financed with debt.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Improved liquidity position and maintenance of a well-spread debt
amortization profile with no major refinancing risks in the medium
term;
- EBITDAR fixed-charge coverage sustained at or above 1.1x;
- FCF generation above Fitch's base case expectations;
- Gross and net leverage consistently below 5.5x and 5.0x,
respectively;
- Continued solid rebound of Brazilian domestic air traffic.
Liquidity and Debt Structure
Azul's short-term maturities totaled BRL8.5 billion (BRL2.2 billion
of financial debt and BRL6.3 billion of leasing obligations) as of
Dec. 31, 2024. Azul's readily available cash, per Fitch's criteria,
declined to BRL1.3 billion from BRL1.9 billion at the end of
December 2023. According to Fitch's estimates, Azul would not be
able to generate enough cash flow and lacks sufficient liquidity to
fulfill those obligations without new money.
Total debt was BRL31.2 billion, and primarily consists of BRL17.3
billion of leasing obligations, BRL977 million of the bridge notes
due 2025, BRL196 million of cross-border senior unsecured notes due
2026, and BRL11.4 billion of secured issuances due 2028, 2029 and
2030.
Issuer Profile
Azul is one of Brazil's largest airlines, dominating the regional
market and serving as the sole carrier on 82% of its routes. In
2024, 93% of its revenues came from passengers, while 7% came from
cargo and other sources.
Date of Relevant Committee
January 31, 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
----------- ------ --------
Azul Secured
Finance LLP
super senior LT CCC New Rating RR4
BAMBI HEALTH: Seeks to Hire Cross & Simon as Bankruptcy Counsel
---------------------------------------------------------------
Bambi Health, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Delaware to hire Cross & Simon, LLC as
counsel.
The firm will provide these services:
a. perform all necessary services as the Debtor's counsel in
connection with this chapter 11 case, including, without
limitation, providing the Debtor with advice concerning its rights
and duties, representing the Debtor, and preparing all necessary
documents, motions, applications, answers, orders, reports and
papers in connection with the administration of this Chapter 11
case on behalf of the Debtor;
b. take all necessary actions to protect and preserve the
Debtor's rights during the pendency of this chapter 11 case,
including prosecute actions by the Debtor, defend any actions
commenced against the Debtor, negotiate all litigation in which the
Debtor is involved, and object to claims filed against the estate;
c. represent the Debtor at hearings, meetings, and conferences
on matters pertaining to the affairs of the Debtor as
debtor-in-possession; and
d. perform all other necessary legal services.
The firm will be paid at these rates:
Christopher P. Simon $715 per hour
Kevin S. Mann $645 per hour
Stephanie MacDonald (paralegal) $255 per hour
The firm received a retainer in the amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Kevin S. Mann, Esq., a partner at Cross & Simon, LLC, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Kevin S. Mann, Esq.
Cross & Simon, LLC
1105 North Market Street, Suite 901
Wilmington, DE 19801
Tel: (302) 777-4200
Fax: (302) 777-4224
About Bambi Health
Bambi Health, Inc. filed for Chapter 11 bankruptcy petition (Bankr.
D. Del. Case No. 25-10384) on March 4, 2025. At the time of
filing, the Debtor estimated $50,001 to $100,000 in assets and
$100,001 to $500,000 in liabilities.
Judge Laurie Selber Silverstein presides over the case.
The Debtor is represented by Kevin S. Mann, Esq. of Cross & Simon
LLC.
BRIGHTMARK PLASTICS: Gets Interim OK to Obtain DIP Loan
-------------------------------------------------------
Brightmark Plastics Renewal, LLC and affiliates received interim
approval from the U.S. Bankruptcy Court for the District of
Delaware to obtain post-petition financing.
The Debtors obtained a non-amortizing, super-priority secured term
loan facility in an aggregate principal amount of up to $13 million
from Brightmark Plastics Ashley Holdco LLC.
The proceeds of the DIP Loan will be used to fund payments, subject
in all respects to the Approved Budget and the Permitted Variances,
related to the: (a) working capital and other general corporate
purposes of the Debtors; (b) professional fees and expenses of
administering the Chapter 11 Cases (including fees incurred prior
to the date the DIP Credit Agreement was signed) in accordance with
the Bankruptcy Code and any orders of the Court, as applicable; (c)
fees and expenses payable under the DIP Credit Agreement,
including, without limitation, the legal fees and expenses of the
DIP Lender; and (d) interest and other amounts payable under the
DIP Credit Agreement.
The DIP facility is due and payable on the earliest of:
(a) May 18, 2025;
(b) the effective date of any chapter 11 plan with respect to the
Debtors;
(c) the consummation of any sale or other disposition of all or
substantially all of the assets of the Debtors pursuant to 11
U.S.C. section 363
(d) the date of the acceleration of the DIP Loans and the
termination of the Commitments following the occurrence and during
the continuation of an Event of Default in accordance with the DIP
Credit Agreement;
(e) dismissal of the Chapter 11 Cases or conversion of the Chapter
11 Cases into cases under chapter 7 of the Bankruptcy Code; and
(f) 35 days after the Petition Date (or such later date as agreed
to by the DIP Lender), unless the Final Order has been entered by
the Court on or prior to such date.
The Debtors are required to comply with these milestones:
(i) No later than two days after the Petition Date, the
Debtors must have filed a motion to sell, and to approve bidding
procedures for the sale of substantially all of the Debtors’
assets;
(ii) No later than five days after the Petition Date, the Court
must have entered the Interim DIP Order in form and substance
satisfactory to the DIP Lender;
(iii) No later than 17 days after the Petition Date, the Court
must have entered an order approving the bidding procedures set
forth in the Sale and Bidding Procedures Motion;
(iv) No later than 35 days after the Petition Date, the Court
must have entered the Final DIP Order in form and substance
satisfactory to the DIP Lender;
(v) No later than 50 days after the Petition Date, all
competing bids under the Bidding Procedures Order must have been
submitted;
(vi) No later than 58 days after the Petition Date, the Court
must have entered an order approving the sale of all or
substantially all of the Assets; and
(vii) No later than 63 days after the Petition Date, the Debtors
must have consummated a Sale Transaction for all of Debtors’
Assets.
The final hearing is set for April 14. Objections are due by April
7.
About Brightmark Plastics Renewal
Brightmark Plastics Renewal LLC utilize proprietary processes and
licensed technology to convert hard-to-recycle plastic waste into
valuable chemical feedstocks that can be used to make new plastics.
This innovative approach helps reduce plastic waste by repurposing
hydrocarbons that would otherwise end up in landfills, contributing
to a more sustainable environment.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-10472) on March 16,
2025. In the petition signed by Craig R. Jalbert, chief
restructuring officer, the Debtor disclosed up to $500 million in
both assets and liabilities.
Judge Laurie Selber Silverstein oversees the case.
The Debtor tapped Potter Anderson & Corroon, LLP as bankruptcy
counsel, SSG Capital Advisors, LLC as investment banker, and Omni
Agent Solutions, Inc. as claims, noticing and solicitation agent.
Brightmark Plastics Ashley Holdco LLC, as DIP Lender, is
represented by:
Mark L. Desgrosseilliers, Esq.
Alison R. Maser, Esq.
Robert A. Weber, Esq.
Chipman Brown Cicero & Cole, LLP
Hercules Plaza
1313 North Market Street, Suite 5400
Wilmington, DE 19801
Telephone: (302) 295-0191
desgross@chipmanbrown.com
maser@chipmanbrown.com
weber@chipmanbrown.com
-and-
Paul M. Rosenblatt, Esq.
Kilpatrick Townsend & Stockton, LLP
1100 Peachtree Street NE, Suite 2800
Atlanta, GA 30309-4528
Telephone: (404) 815-6321
Email: PRosenblatt@ktslaw.com
BROWN & BROWN: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
Brown & Brown Resources, Inc. got the green light from the U.S.
Bankruptcy Court for the Western District of Texas, San Antonio
Division to use cash collateral.
At the hearing held on March 25, the court authorized the Debtor to
use cash collateral on an interim basis to pay expenses essential
for its business operations.
The Debtor's operations have faced challenges due to prior setbacks
and excessive MCA daily payments, but refocusing on skilled nursing
and long-term care has resulted in improved cash flow. Over the
next six months, the Debtor projects significant profitability,
which will support its reorganization efforts.
The Debtor has identified multiple MCA liens, an SBA UCC filing,
and a recent IRS federal tax lien on its personal property,
including accounts receivable and equipment. The Debtor disputes
some of the MCA lenders' claims, particularly their purchase of
future accounts receivable along with security interests.
About Brown & Brown Resources Inc.
Brown & Brown Resources, Inc. operating as Home Nursing & Therapy
Services, is a home health care provider specializing in delivering
nursing and therapy services to individuals in need of in-home
care.
Brown & Brown Resources sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Texas Case No. 25-50501) on March
17, 2025, listing $2,128,167 in assets and $3,848,513 in
liabilities. Eduardo J. Guimbarda, president of Brown & Brown
Resources, signed the petition.
Judge Michael M Parker oversees the case.
William R. Davis, Jr., Esq., at Langley & Banack, Inc., represents
the Debtor as legal counsel.
CARROLLCLEAN LLC: Seeks to Sell Tangible Property at Auction
------------------------------------------------------------
CarrollClean LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Texas, Sherman Division, to sell Tangible
Personal Property, free and clear of liens, claims, and
encumbrances.
The Debtor is engaged in the manufacturing and sale of chemical
cleaning products. The Debtor owns various items of tangible
personal property which it wishes to liquidate at public auction
through auctioneer.
The lienholders of the Property are City of Garland, Dallas County,
Dallas ISD, Dallas Hospital, Dallas College, MCA Financial
Solutions LLC and MCP IV, LP, MUFG Bank Ltd.
The Debtor seeks to sell the Property at public auction as is,
where is, and free and clear of liens, claims and encumbrances with
any liens or encumbrances to attach to the proceeds of the sale.
About CarrollClean LLC
CarrollCLEAN, LLC, sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. E.D. Tex. Case No. 24-42039) on August
29, 2024, listing up to $50,000 in both assets and liabilities.
Judge Brenda T Rhoades presides over the case.
Howard Marc Spector, Esq. at Spector & Cox, PLLC, is the Debtor's
counsel.
CATHOLIC FAITH: Seeks Chapter 11 Bankruptcy in Kansas
-----------------------------------------------------
On March 24, 2025, Catholic Faith Store LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Kansas. According to court filing, the
Debtor reports $1,823,178 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Catholic Faith Store LLC
Catholic Faith Store LLC, d/b/a Heartland 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.
Catholic Faith Store LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 25-20342) on March 24,
2025. In its petition, the Debtor reports total assets as of March
18, 2025 amounting to $1,761,497 and total liabilities as of March
18, 2025 of $1,823,178.
Honorable Bankruptcy Judge Dale L. Somers handles the case.
The Debtor is represented byColin Gotham, Esq. at EVANS & MULLINIX,
P.A.
CEC ENTERTAINMENT: S&P Assigns Prelim 'B-' Rating on Secured Notes
------------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B-' issue-level rating
and '3' recovery rating to CEC Entertainment LLC's proposed $660
million senior secured notes due 2030. The '3' recovery rating
indicates S&P's expectation for meaningful recovery (50%-70%;
rounded estimate: 50%) in the event of a payment default.
S&P said, "We expect the company will use the proceeds from the
proposed notes to refinance its existing $650 million 6.75% senior
secured notes and pay transaction-related costs. We view this
transaction favorably because it will extend CEC's debt maturity
profile and is largely leverage neutral.
"Our 'B-' issuer credit rating on CEC is on CreditWatch, where we
placed it with negative implications on Feb. 13, 2025, primarily
reflecting the approaching maturity of its existing senior notes
due May 2026. We expect to resolve the CreditWatch once the
proposed transaction closes and the company successfully extends
its maturity profile. We expect CEC's recently introduced
promotional initiatives--such as the $99 birthday offer, active
play "Adventure Zones", and the "Fun-Pass" membership
program--along with its store remodels, will support steady
consumer traffic and a low-single digit percent increase in its
same-store sales. Incorporating the company's store relocations,
closings, and openings, we forecast it will expand its consolidated
revenue by 1% in 2025. That said, we anticipate CEC's S&P Global
Ratings-adjusted EBITDA margins will remain flat in the mid-29%
area next year because the increase in its sales will be offset by
higher store occupancy and marketing expenses.
"We expect the recent completion of the company's domestic store
remodeling program will improve its free operating cash flow
generation because its annual capital expenditure will decline to
approximately $55 million-$65 million next year from approximately
$120 million in 2024. Our forecast for CEC's credit metrics is
unchanged by the proposed transaction and we continue to assume its
S&P Global Ratings-adjusted leverage will stay 5.1x in 2025
(unchanged from the trailing 12 months as of the end of the third
quarter of 2024). We also forecast the company's S&P Global
Ratings-adjusted funds from operations to debt will be in the
low-12% area over the same period."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P rates the proposed $660 million senior secured notes 'B-'
(prelim). The '3' recovery rating indicates its expectation for
meaningful recovery (50%-70%; rounded estimate: 50%) in the event
of a payment default.
-- S&P's enterprise value at emergence from default is higher than
its prior analysis due to the significant growth capital
investments the company has made to complete its domestic store
remodeling program.
-- Following close of the proposed transaction, CEC's capital
structure will comprise a $100 million revolving credit facility
(not rated) and $660 million of senior secured notes. Both
instruments will rank pari passu in terms of payment priority.
-- S&P simulates a default occurring in 2027 because of a steep
decline in the company's sales and EBITDA stemming from unfavorable
industry conditions and a global recession.
-- S&P said, "Given its recently renovated locations and good
brand recognition, we assume CEC would emerge from bankruptcy to
maximize its lenders' recovery prospects. We value the company on a
going-concern basis by applying a 5.0x multiple to our estimate of
its emergence EBITDA. This valuation multiple is lower than the
5.5x multiple we use for other entertainment and dining operators
to reflect our view of CEC's relatively weaker business."
Simulated default assumptions
-- Simulated year of default: 2027
-- EBITDA at emergence: $85 million
-- Implied enterprise value (EV) multiple: 5x
-- Estimated gross EV at emergence: $425 million
Simplified waterfall
-- Net EV after 5% administrative costs: $405 million
-- Senior secured claims: $770 million
--Recovery expectations: 50%-70% (rounded estimate: 50%)
Note: All debt amounts include six months of prepetition interest.
CHAR GRILL: Gets Extension to Access Cash Collateral
----------------------------------------------------
Char Grill Benson, LLC received another extension from the U.S.
Bankruptcy Court for the Eastern District of North Carolina,
Raleigh Division, to use cash collateral.
The court order authorized the company to use cash collateral in
accordance with its budget, which shows total operational expenses
of $127,180.12 for the period from March 10 to April 9.
As protection for the use of their cash collateral, secured
creditors were granted a lien on the company's revenue and other
assets acquired post-petition to the same extent and priority as
they had prior to the company's bankruptcy filing.
The secured creditors are Northeast Bank, the U.S. Small Business
Administration, BayFirst National Bank, Kapitus, LLC, and
BoomFunded.
The next hearing is scheduled for April 10.
About Char Grill Benson
Char Grill Benson, LLC is a local fast-food chain in Benson, N.C.,
serving charcoal-grilled burgers, fries and shakes.
Char Grill Benson filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-00459) listing
up to $50,000 in assets and between $1 million and $10 million in
liabilities. Jennifer K. Bennington serves as Subchapter V
trustee.
Judge David M. Warren presides over the case.
Philip Sasser, Esq., at Sasser Law Firm is the Debtor's bankruptcy
counsel.
BayFirst National Bank, as secured creditor, is represented by:
Phillip M. Fajgenbaum, Esq.
Parker Poe Adams & Bernstein, LLP
620 South Tryon Street, Suite 800
Charlotte, NC 28202
Telephone: (704) 372-9000
phillipfajgenbaum@parkerpoe.com
CHUNGA-JINGA: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Chunga-Jinga LLC
86 West End Ave
Brooklyn, NY 11235
Business Description: Chunga-Jinga LLC is a real estate management
company based in Brooklyn, New York,
primarily focused on owning and managing
residential properties.
Chapter 11 Petition Date: March 26, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-41417
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: Robert J. Spence, Esq.
SPENCE LAW OFFICE, P.C.
55 Lumber Road, Suite 5
Roslyn, NY 11576
Tel: 516-336-2060
Fax: 516-605-2084
E-mail: rspence@spencelawpc.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Bela Narovlianski as managing member.
The Debtor did not file a list of its 20 largest unsecured
creditors together with the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/SRZD6YY/Chunga-Jinga_LLC__nyebke-25-41417__0001.0.pdf?mcid=tGE4TAMA
CITRUS360 LLC: Seeks to Hire Kurt Stephen as Legal Counsel
----------------------------------------------------------
Citrus360 LLC seeks approval from the U.S. Bankruptcy Court for the
Southern District of Texas to hire The Law Office of Kurt Stephen,
PLLC as its legal counsel.
The firm will render these services:
a. prepare appropriate schedules, statement of financial
affairs, motions, notices, orders, and applications to comply with
the requisites of the U.S. Trustee and the United States Bankruptcy
Code and Bankruptcy Rules;
b. counsel with the Debtor regarding development of a
reorganization or liquidating Chapter 11 Plan; and
c. discuss reorganization with creditors and/or third parties,
and preparation and proposal of a reorganization or liquidating
Chapter 11 Plan.
Kurt Stephen, Esq., the attorney who will be handling the case,
charges an hourly fee of $425. His firm received a retainer in the
amount of $25,000.
Mr. Stephen disclosed in a court filing that he and his firm do not
represent any interest adverse to the Debtor or its estate.
The firm can be reached through:
Kurt Stephen, Esq.
Law Office of Kurt Stephen, PLLC
100 S. Bicentennial Blvd.
McAllen, TX 78501-7050
Tel: (956) 631-3381
Fax: (956) 687-5542
Email: kurtstep@swbell.net
About Citrus360 LLC
Citrus360 LLC is a limited liability company.
Citrus360 LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Tex. Case No. 25-70056) on March 3, 2025. In its
petition, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
Honorable Bankruptcy Judge Eduardo V. Rodriguez handles the
case.
The Debtor is represented by Kurt Stephen, Esq. at LAW OFFICES OF
KURT STEPHEN, PLLC.
CONCORDE METRO: Seeks Chapter 11 Bankruptcy in Puerto Rico
----------------------------------------------------------
On March 24, 2025, Concorde Metro Seguros LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of Puerto
Rico. According to court filing, the Debtor reports between $1
million and $10 million in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
About Concorde Metro Seguros LLC
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.
Concorde Metro Seguros LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-01269 ) on March
24, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by Javier Vilarino, Esq. at VILARINO AND
ASSOCIATES LLC.
COWAN FITNESS: Seeks Subchapter V Bankruptcy in Texas
-----------------------------------------------------
On March 24, 2025, Cowan Fitness South Round Rock LLC filed
Chapter 11 protection in the U.S. Bankruptcy Court for the Western
District of Texas. According to court filing, the
Debtor reports $1,006,184 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Cowan Fitness South Round Rock LLC
Cowan Fitness South Round Rock LLC, 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.
Cowan Fitness South Round Rock LLC sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-10395)
on March 24, 2025. In its petition, the Debtor reports total assets
of $81,003 and estimated liabilities of $1,006,184.
.
Honorable Bankruptcy Judge Shad Robinson handles the case.
The Debtor is represented by Frank B Lyon, Esq.
CXOSYNC LLC: Court Extends Cash Collateral Access to April 25
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
extended CXOsync, LLC's authority to use cash collateral from March
21 to April 25.
The interim order authorized the company to use the cash collateral
of the Internal Revenue Service and the U.S. Small Business
Administration in accordance with its budget, which shows total
operating costs of $143,863.00 for the interim period.
As protection for the use of their cash collateral, both the IRS
and the SBA will receive replacement liens on all of CXOsync's
property. These replacement liens will hold the same priority and
validity as the pre-bankruptcy liens.
A status hearing is set for April 23.
About CXOsync LLC
CXOsync, LLC is a corporate event planner which presents events and
workshops geared toward CIOs, CISOs, CMOs, and CFOs of businesses.
It hosts live and virtual events to gather CXOs from the world's
largest corporations and brands.
CXOsync sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Banker. N.D. Ill. Case No. 24-08351) on June 5, 2024, with
$128,315 in assets and $6,030,532 in liabilities. Rupen Patel,
managing member, signed the petition.
Judge Janet S. Baer presides over the case.
The Debtor is represented by:
Ben L Schneider, Esq.
Schneider & Stone
Tel: 847-933-0300
Email: ben@windycitylawgroup.com
DAATS COMPANIES: Seeks Cash Collateral, DIP Loan
------------------------------------------------
DAATS Companies, Inc. asked the U.S. Bankruptcy Court for the
Northern District of Texas, Fort Worth Division, for authority to
use cash collateral and continue its factoring relationship with
Apex Capital Corporation under a post-petition financing
arrangement.
On August 25, 2015, the Debtor entered into an Accounts Receivable
Purchasing Agreement with Apex, under which the Debtor factors its
accounts receivable to Apex. This provides the Debtor with the
necessary cash flow and working capital to run its business. The
agreement was amended twice, in 2016 and 2019, to reflect updates
to the terms.
The Factoring Agreement involves the Debtor selling its receivables
to Apex in exchange for cash, and Apex taking a security interest
in the Debtor's cash collateral.
Apex's willingness to continue the factoring relationship
post-petition is contingent on several conditions:
1. The post-petition relationship will be substantially identical
to the pre-petition arrangement.
2. Apex will be granted post-petition replacement liens on the
Debtor's assets.
3. Any amounts borrowed post-petition from Apex will receive
super-priority administrative claim status.
4. Apex will have the ongoing right to collect the Debtor's
accounts receivable (both purchased and non-purchased) directly
from the Debtor's customers.
5. Monthly adequate protection payments will be made to Apex to
cover the post-petition interest accruing on any overadvance under
the agreement.
The continuation of the Factoring Agreement is considered the best
available option for the Debtor to successfully reorganize.
A court hearing is set for April 4. Objections are due by April 7.
About DAATS Companies Inc.
DAATS Companies Inc. is a comprehensive trucking firm located in
Dallas, Texas, providing nationwide transport services, including
dry-van and refrigerated product shipments. The Company focuses on
urgent, same-day, and scheduled deliveries, prioritizing safety and
punctuality across the continental United States.
DAATS Companies sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40894) on March 14,
2025. In its petition, the Debtor reported between $1 million and
$10 million in both assets and liabilities.
Judge Edward L. Morris handles the case.
The Debtor is represented by Joyce W. Lindauer, Esq., at Joyce W.
Lindauer Attorney, PLLC.
DECO GROUP: Jarrod Martin Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Region 7 appointed Jarrod Martin, Esq., a
practicing attorney in Houston, as Subchapter V trustee for Deco
Group, LLC.
Mr. Martin will be paid an hourly fee of $650 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Martin declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jarrod B. Martin, Esq.
1200 Smith Street, Suite 1400
Houston, TX 77002
Phone: 713-356-1280
Email: JBM.Trustee@chamberlainlaw.com
About Deco Group LLC
Deco Group, LLC runs and oversees both a quick-service restaurant
and a full-service restaurant business in Bryan, Texas.
Deco Group sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Case No. 25-31252) on March 4,
2025, listing $106,682 in assets and $2,238,074 in debts. John
Mathews, Deco Group manager, signed the petition.
Judge Jeffrey P. Norman oversees the case.
Robert C. Lane, Esq., at the Lane Law Firm, represents the Debtor
as bankruptcy counsel.
DIGITAL GRAPHICS: Gets Final OK to Use Cash Collateral
------------------------------------------------------
Digital Graphics Plus, LLC received final approval from the U.S.
Bankruptcy Court for the Middle District of Florida to use cash
collateral.
The court had previously issued three orders giving the company
temporary access to cash collateral.
All prior interim orders granting the motion to use cash collateral
are deemed final.
About Digital Graphics Plus
Digital Graphics Plus, LLC provides graphic design and printing
services. Its offerings typically include a range of products such
as promotional materials, custom signage, marketing collateral, and
digital solutions aimed at enhancing branding and visibility for
businesses.
Digital Graphics Plus filed Chapter 11 petition (Bankr. M.D. Fla.
Case No. 24-05422) on October 4, 2024, listing up to $50,000 in
assets and up to $500,000 in liabilities.
Judge Grace E. Robson oversees the case.
The Debtor is represented by:
Jeffrey S. Ainsworth, Esq.
BransonLaw PLLC
1501 E. Concord Street
Orlando, FL 32803
Tel: 407-894-6834
Email: jeff@bransonlaw.com
DIOCESE OF CAMDEN: Aims to Settle Abuse Settlement Plan Disputes
----------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that the Diocese of Camden,
N.J., has requested a court order requiring insurers and clergy
abuse survivors to mediate ongoing disputes that have delayed its
$87.5 million settlement and hindered its bankruptcy exit.
More than a year after receiving court approval to reorganize in
bankruptcy and settle hundreds of child abuse claims, legal fees
continue to rise while victims have yet to receive any
compensation, the diocese stated in a filing with the U.S.
Bankruptcy Court for the District of New Jersey on Tuesday, March
25, 2025.
About The Diocese of Camden, NJ
The Diocese of Camden, New Jersey is a nonprofit religious
corporation organized pursuant to Title 16 of the Revised Statutes
of New Jersey. The Diocese is the secular legal embodiment of the
Roman Catholic Diocese of Camden, a juridic person recognized under
Canon Law.
The Diocese of Camden sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.N.J. Case No. 20-21257) on Oct. 1, 2020.
The petition was signed by Reverend Robert E. Hughes, vicar General
and vice president. At the time of the filing, the Debtor had total
assets of $53,575,365 and liabilities of $25,727,209. Judge Jerrold
N. Poslusny Jr. oversees the case. McManimon, Scotland & Baumann,
LLC, is the Debtor's legal counsel.
DMMJ REALTY: Hires Davidoff Hutcher & Citron LLP as Attorney
------------------------------------------------------------
DMMJ Realty Corp. seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to hire Davidoff Hutcher & Citron
LLP as attorneys.
The firm will render these services:
a. give advice to the Debtors with respect to their powers and
duties as Debtors-in-Possession and the continued management of
their property and affairs;
b. negotiate with creditors of the Debtors and work out a plan
of reorganization and take the necessary legal steps in order to
effectuate such a plan including, if need be, negotiations with the
creditors and other parties in interest;
c. prepare the necessary answers, orders, reports and other
legal papers required for debtors who seek protection from its
creditors under Chapter 11 of the Bankruptcy Code;
d. appear before the Bankruptcy Court to protect the interests
of the Debtors and to represent the Debtors in all matters pending
before the Court;
e. attend meetings and negotiate with representatives of
creditors and other parties in interest;
f. advise the Debtors in connection with any potential
refinancing of secured debt and any potential sale of the business
and/or the Property;
g. represent the Debtor in connection with obtaining
post-petition financing, if necessary;
h. take any necessary action to obtain approval of a
disclosure statement and confirmation of a plan of reorganization;
and
i. perform all other legal services for the Debtors which may
be necessary for the preservation of the Debtors' estates and to
promote the best interests of the Debtors, their creditors, and the
estates.
The firm's 2025 hourly rates are:
Robert L. Rattet, Partner $850
Jonathan S. Pasternak, Partner $825
Craig M. Price, Senior Counsel $750
Jack D. Molino, Associate $500
Eric R. Schachter, Associate $450
The Debtor El Tio paid a $5,000 retainer to the firm.
Mr. Rattet disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Robert R. Rattet, Esq.
DAVIDOFF HUTCHER & CITRON LLP
120 Bloomingdale Road, Suite 100
White Plains, New York 10605
Telephone: (914) 381-7400
Email: rlr@dhclegal.com
About DMMJ Realty Corp.
DMMJ Realty Corp. is a single asset real estate debtor, as defined
in 11 U.S.C. Section 101(51B).
DMMJ Realty Corp. sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22157) on
February 27, 2025. In its petition, the Debtor reports estimated
assets between $1 million and $10 million and estimated liabilities
between $500,000 and $1 million.
Honorable Bankruptcy Judge Sean H. Lane handles the case.
The Debtor is represented by Robert L. Rattet, Esq. at DAVIDOFF
HUTCHER & CITRON LLP.
DOCUDATA SOLUTIONS: U.S. Bank Steps Down as Committee Member
------------------------------------------------------------
The U.S. Trustee for Region 7 announced the resignation of U.S.
Bank Trust Company, N.A. from the official committee of unsecured
creditors in the Chapter 11 cases of DocuData Solutions, LC and its
affiliates.
Meanwhile, the U.S. Trustee appointed CSC Delaware Trust Company to
the committee.
As of March 24, the members of the committee are:
1. CSC Delaware Trust Company as Indenture Trustee
Gregory Daniels, Vice President
251 Little Falls Drive
Wilmington, DE 19808-1674
Phone: (302) 485-1355
Email: gregory.daniels@cscglobal.com
Counsel:
Seth Lieberman
Pryor Cashman LLP
7 Times Square
New York, NY 10036
Phone: (212) 326-0819
Email: slieberman@pryorcashman.com
2. Alpine Global Management, LLC
Rick Palmon
140 Broadway, 38th Floor
New York, NY 10005-1108
Phone: (646) 403-6235
rick.palmon@alpineglobal.com
3. Phoenix Investment Adviser LLC
Jeffrey L. Peskind
420 Lexington Avenue, Suite 300
New York, NY 10170
Phone: (212) 359-6210
jlpeskind@phoenixinvadv.com
ops@phoenixinvadv.com
4. Rocket Software, Inc.
f/k/a ASG Technologies, Inc.
Elizabeth Fischer, Chief Legal Officer
77 4th Avenue
Waltham, MA 02451
Counsel:
Tom Howley
Howley Law PLLC
700 Louisiana Street, Ste 4545
Houston, TX 77002
Phone: (713) 333-9120
Email: tom@howley-law.com
5. Konica Minolta Business Solutions, USA
Stephen Herbes, SVP and General Counsel
100 Williams Drive
Ramsey, NJ 07446
Phone: (201) 234-4364
Email: sherbes@kmbs.konicaminolta.us
Counsel:
David N. Crapo
Gibbons, P.C.
One Gateway Center
Newark, NJ 070102
Phone: (973) 596-4523
Email: dcrapo@gibbonslaw.com
6. AFLAC
Kedrick N. Eily, Corp. Counsel
1932 Wynnton Road
Columbus, GA 31999
Phone: (470) 618-4845
KEily@aflac.com
7. Opex
John Sims
305 Commerce Drive
Moorestown, NJ 08057
Phone: (856) 727-1100
jsims@opex.com
Counsel:
Winnie Chow, Director of Legal
Opex
Phone: (856) 727-1100
Email: wchow@opex.com
About Docudata Solutions
Docudata Solutions, LC, together with their Debtors and non-Debtor
affiliates (the Company), are a global leader in business process
automation. Leveraging their worldwide presence and proprietary
technology, the Company offers high-quality payment processing and
digital transformation solutions across the Americas and Asia,
helping clients enhance efficiency and lower operational costs. The
Company has worked with over 60% of the Fortune 100 companies. They
provide essential services to top global banks, financial
institutions, healthcare payers and providers, and major global
brands. These services include finance and accounting solutions,
payment technologies, healthcare payer and revenue cycle
management, hyper-automation and remote work solutions, enterprise
information management, integrated communications and marketing
automation, as well as digital solutions for large enterprises.
Docudata Solutions and its affiliates filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas
Case No. 25-90023) on March 3, 2025. In the petitions signed by
Matt Brown, interim chief financial officer, the Debtors disclosed
$500 million to $1 billion in estimated assets and $1 billion to
$10 billion in estimated liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Hunton Andrews Kurth LLP and Latham & Watkins
LLP, Houlihan Lokey, Financial Advisors, Inc. as investment banker,
AlixPartners, LLP as financial advisor. Omni Agent Solutions, Inc.
is the Debtors' claims, noticing and solicitation agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
DUN & BRADSTREET: S&P Places 'B+' ICR on CreditWatch Negative
-------------------------------------------------------------
S&P Global Ratings placed its ratings, including its 'B+' issuer
credit rating on Jacksonville, Fla.-based information services
company Dun & Bradstreet Holdings Inc. (D&B), on CreditWatch with
negative implications.
The CreditWatch placement reflects our expectation that D&B's pro
forma leverage will likely rise considerably higher than the
current 6x ratings threshold and could result in a downgrade to the
low 'B' rating category.
The transaction is expected to close in the third quarter of 2025,
and S&P will resolve the CreditWatch when more information
regarding the financing and post-close capital structure becomes
available.
S&P said, "We believe D&B's credit measures will likely deteriorate
following the close of the transaction. D&B has entered into a
definitive agreement to be acquired by financial sponsor Clearlake
Capital Group L.P. for $7.7 billion, including outstanding debt.
Concurrent with the agreement, affiliates of Clearlake have secured
a $5.75 billion 364-day senior secured bridge loan facility, as
well as $2.3 billion of equity financing commitments. The
transaction will likely lead to significantly higher debt levels at
D&B, which we already view as highly leveraged, with net debt to
EBITDA of 5.6x as of Dec. 31, 2024. Cash flow measures, with
adjusted free operating cash flow to net debt in the
mid-single-digit percent area, will also further weaken." The
transaction is expected to close in the third quarter of 2025 and
is subject to shareholder and regulatory approvals.
The purchase agreement allows the company a "go-shop" period of 30
days that ends April 22, 2025, during which the company may
initiate, solicit, encourage, and facilitate any alternative
acquisition proposal from third parties. In the event a superior
bid emerges, the go-shop period can be extended for 15 days.
S&P said, "We expect to resolve the CreditWatch placement once the
capital structure and financial policies of the new owners become
clear and when the acquisition closes during the third quarter of
2025. We could likely lower our issuer credit rating on D&B to the
low 'B' category under the current financing agreement. If the sale
transaction did not materialize, we could affirm the rating."
ELECTROCORE INC: Posts $11.9 Million Net Loss in 2024
-----------------------------------------------------
electroCore, Inc. filed its Annual Report on Form 10-K with the
U.S. Securities and Exchange Commission, reporting net losses of
$11.9 million and $18.8 million for the year ended December 31,
2024 and 2023, respectively. As of December 31, 2024, our
accumulated deficit was $177.1 million.
As of Dec. 31, 2024, the Company had $20.4 million in total assets,
$12.9 million in total liabilities, and $7.5 million in total
stockholders' equity.
The Company has experienced significant net losses, and it expects
to continue to incur net losses for the near future as it works to
increase market acceptance of its gammaCore therapy and general
wellness and human performance products. The Company has never been
profitable and has incurred net losses and negative cash used in
operations each year since its inception. The Company incurred net
losses of $11.9 million and $18.8 million and used cash in its
operations of $6.9 million and $14.7 million for the years ended
December 31, 2024 and 2023, respectively.
The Company has historically funded its operations from the sale of
its securities. During the years ended December 31, 2024, the
Company received net proceeds of approximately $9 million from such
sales and as of December 31, 2024, the Company's cash, cash
equivalents and marketable securities totaled $12.2 million.
Based on its current assessment, the Company believes its Cash
Position will enable it to fund its operating expenses and capital
expenditure requirements, as currently planned, for at least the
next 12 months from the date the accompanying financial statements
are issued. There remain significant risks and uncertainties
regarding the Company's business, financial condition and results
of operations. The Company's future capital requirements are
difficult to forecast and will depend on many factors that are out
of its control. If the Company is unable to achieve its planned
operating results or maintain sufficient financial resources,
including through potential positive cash flow from operations or
supplemental access to third-party debt, equity or hybrid capital,
its business, financial condition and results of operations may be
materially and adversely affected.
The Company's expected cash requirements for the next 12 months
from the date these financial statements are issued and beyond are
largely based on the commercial success of its products. The
Company believes its cash and cash equivalents and anticipated
revenue will enable it to fund its operating expenses, working
capital, and capital expenditure requirements, as currently
planned, through 12 months from the date of the accompanying
financial statements.
"We enter 2025 well-positioned for continued success, with
established channels to market and solutions that provide
meaningful value to patients and consumers," commented Dan
Goldberger, CEO of electroCore. "Our focus now is to expand our
presence within the key sales channels we have developed to deliver
continued growth and progress towards profitability.
Simultaneously, we are expanding our addressable market
inorganically and through recently announced partnerships."
A full-text copy of the Company's Form 10-K is available at:
http://www.sec.gov/Archives/edgar/data/1560258/0001213900-25-023259-index.htm
About electroCore, Inc.
electroCore, Inc. -- www.electrocore.com/ -- is a commercial-stage
bioelectronic medicine and wellness company dedicated to improving
health through its non-invasive vagus nerve stimulation technology
("nVNS") platform. The Company's focus is the commercialization of
medical devices for the management and treatment of certain medical
conditions and consumer product offerings utilizing nVNS to promote
general well-being and human performance in the United States and
select overseas markets.
* * *
This concludes the Troubled Company Reporter's coverage of
electroCore until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
ELEVATE PFS: S&P Upgrades ICR to 'B-', Outlook Stable
-----------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Elevate PFS
Parent Holdings Inc. to 'B-' from 'CCC+' and its issue-level rating
on its secured debt to 'B-' from 'CCC+'. S&P's '3' recovery rating
on the secured debt is unchanged.
S&P said, "The stable outlook reflects our expectation that
Elevate's new business wins will support a strong expansion in its
organic revenue in both 2025 and 2026 while its EBITDA margin
remains relatively flat in the mid- to high- teens percent range.
We expect the company's S&P Global Ratings-adjusted debt leverage
will be about 5x on its slim free operating cash flow (FOCF)
generation in 2025. The stable outlook also reflects our
expectation that Elevate's leverage will remain above 5x due to its
financial-sponsor ownership.
"The upgrade reflects Elevate's improved operational performance
following the unwinding of the continuous enrollment provision,
which we expect will support sustainable FOCF generation in the
future. The company experienced stronger-than-budgeted bookings in
2024, and relative to 2023, with about 40% of the increase stemming
from new logos. The strong bookings cycle reflected the new AR
service lines acquired in the acquisitions of Revenue Masters and
PMS as well as continued momentum from hospitals greater comfort
with software spending following delays in new vendor selections
during the COVID-19 pandemic. Additionally, the company's volumes
were suppressed due to the halting of administrative churn during
the Public Health Emergency (PHE) due to continuous Medicaid
enrollment. As states resumed disenrollment following the end of
the continuous enrollment provision in April 2023, patients who
lost coverage despite still being eligible needed to be re-enrolled
as they sought care at a hospital, which revived Elevate's volume
growth. While redeterminations began in April 2023, many states
took 12 months to complete the unwinding of their renewals.
Additionally, the company only benefits from the volume increases
as unenrolled eligible patients return to health to hospital
facilities to seek care, which stretched its volume recovery over
2023 with some tail in 2024.
"We see uncertainty related to policy changes, including potential
cuts to Medicaid spending, by the federal government. In February
2025, the House passed a budget resolution instructing the House
Energy & Commerce Committee (E&C) to reduce the federal deficit by
at least $880 billion over 10 years. A Congressional Budget Office
(CBO) report dated March 2025 indicates that some of the cuts would
likely need to come from Medicaid. We expect that, if this
resolution is passed, states may need to decrease their eligible
populations or service coverage, which would cut into Elevate's
addressable market. This could be a headwind for the company,
though it could also lead to higher demand for its services or
accelerated volume growth if state re-enrollments occur more
frequently or the enrollment process becomes more complex.
"We expect the potential expiration of the enhanced Affordable Care
Act (ACA) subsidies will not have significant effect on Elevate's
addressable population. The enhanced ACA subsidies, first enacted
in 2021 under the American Rescue Plan Act and renewed through the
end of 2025 by the Inflation Reduction Act, lower premium payments
for ACA marketplace coverage by boosting existing subsidies. If
these subsidies are not renewed by Congress and expire at the end
of 2025, ACA enrollee premium payments will increase significantly,
likely lead to a decline in ACA enrollees, with some finding
coverage elsewhere and others remaining uninsured. We do not expect
this to effect Elevate because enrollees must not be eligible for
public coverage, such as Medicaid, to claim the subsidy."
Elevate remains narrowly focused on eligibility in the highly
fragmented and competitive revenue cycle management (RCM) industry.
The company generates more than 60% of its revenue from screening
patients for Medicaid programs and assisting with the application
and enrollment process as they seek care in a hospital setting.
Elevate also provides patient responsibility (guiding patients
through bills and determining payment methods) and accounts
receivable (AR) services, which include assisting hospitals in
recovering revenue from liable third parties and following up on
accounts denied by payers.
The RCM industry remains crowded with large well-financed
multi-solution providers that manage health care providers' RCM
operations, including patient registration, insurance and benefit
verification, medical treatment documentation and coding, bill
preparation, and collections from patients and payers. While some
health systems prefer to operate with multiple vendors to mitigate
risk, many consolidate their RCM vendors to save costs and
streamline their operations. S&P said, "We view companies that
offer specialized point solutions, like Elevate, as less
competitive than their larger, well-financed peers. Nevertheless,
we view the company's presence in the acute-care market favorably
due to hospitals' focus on efficiency and revenue optimization,
especially with patients being responsible for an increasing
portion of their overall health care costs." The increasing
complexity of eligibility criteria may provide a tailwind for
Elevate as hospitals seek to outsource eligibility to specialized
vendors to ensure maximum revenue collection.
S&P said, "We expect the company's debt to EBITDA will remain above
5x as it continues to pursue debt-financed acquisitions. Our
assessment of Elevate's financial risk incorporates its
financial-sponsor ownership, which will likely lead it to remain
highly leveraged as it continues to acquire smaller vendors to
complement its capabilities, provide adjacent service lines, and
expand geographically. We expect the company will improve its cash
flow in 2025 on a top-line revenue expansion and operational
improvements, though we expect it will continue to be burdened by
earn-out payments related to its earlier acquisitions. We also
expect Elevate will use its revolver regularly for operational
needs but will retain sufficient headroom for unexpected
difficulties.
"The stable outlook reflects our expectation that new business wins
will support a strong expansion in Elevate's organic revenue in
2025 and 2026 while its EBITDA margin remains relatively flat in
the mid- to high-teens percent range. We expect the company's S&P
Global Ratings-adjusted debt leverage will be about 5x on slim FOCF
generation in 2025. The stable outlook also reflects our
expectation that Elevate's leverage will remain above 5x due to its
financial-sponsor ownership.
"We could consider downgrading Elevate if its operating performance
is weaker than forecast and we no longer expect it will generate
positive FOCF, which would lead us to view its capital structure as
unsustainable, or its liquidity becomes strained. This could occur
if the company experiences customer terminations, faces difficulty
signing new customers, or sees a greater-than-expected headwinds
from policy changes to Medicaid.
"While unlikely in the next year, we could consider upgrading
Elevate if it successfully adds new customers, sustains leverage of
comfortably below 5x, and maintains FOCF to debt of greater than
5%."
ELITE SURGERY: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
Elite Surgery Center, LLC received interim approval from the U.S.
Bankruptcy Court for the Central District of California, Los
Angeles Division, to use cash collateral and provide adequate
protection.
The interim order authorized the Debtor to use cash collateral,
including cash and cash equivalents, to pay its operating expenses
from March 17 to April 24.
As protection, Mission Bank was granted a replacement lien on the
Debtor's cash, receivables and proceeds of its collateral, with the
same priority as its pre-bankruptcy lien.
The next hearing is scheduled for April 24.
Elite Surgery Center's business has been financially struggling due
to factors like pandemic delays, unpaid reimbursements from Kaiser
Permanente, and negligence by its billing company, Nimble
Solutions. The outpatient surgery center owes approximately $2.4
million, with $1.7 million being unsecured debts.
The Debtor has projected monthly patient care income of $105,000
and expects a $2,800 profit per month in the first 90 days
post-filing.
The Debtor has secured debts with several creditors, including
Mission Bank, Flex Financial, Ampac, and Highland Capital
Corporation. Mission Bank holds a lien on the Debtor's cash
collateral, which includes its inventory, accounts, and equipment.
The total outstanding debt to Mission Bank is $55,917, secured by
approximately $40,968 in cash and $138,000 in receivables.
About Elite Surgery Center LLC
Elite Surgery Center, LLC doing business as Elite Robotic Surgery
and Elite Robotic Surgery Center, is an ambulatory surgery center
specializing in outpatient surgical procedures that do not require
overnight hospitalization. The center offers advanced, minimally
invasive surgeries, often utilizing robotic technology to enhance
precision and recovery times.
Elite Surgery Center sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-12149) on March 17,
2025, listing $716,715 in assets and $2,833,257 in liabilities.
David Groves, chief financial officer of Elite Surgery Center,
signed the petition.
Judge Vincent P. Zurzolo oversees the case.
Alan W. Forsley, Esq. at FLP Law Group, LLP represents the Debtor
as bankruptcy counsel.
ENVISION CIVIL: Seeks Subchapter V Bankruptcy in North Carolina
---------------------------------------------------------------
On March 24, 2025, Envision Civil LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Western District of North
Carolina. According to court filing, the Debtor reports between
$1 million and $10 million in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
About Envision Civil LLC
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.
Envision Civil LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D.N.C. Case No. 25-40067) on March 24,
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 Ashley Austin Edwards handles the
case.
The Debtor is represented by John C. Woodman, Esq. at ESSEX
RICHARDS PA.
EVOFEM BIOSCIENCES: Posts $8.86M Loss in 2024, Warns of Bankruptcy
------------------------------------------------------------------
Evofem Biosciences, Inc., reported a net loss of $8.86 million on
net product sales of $19.36 million for the year ending Dec. 31,
2024, according to its Annual Report on Form 10-K filed with the
Securities and Exchange Commission. This marks a significant
change from the previous year, when the Company posted a net income
of $52.98 million on net product sales of $18.22 million.
The Company anticipates it will continue to incur net losses for
the foreseeable future. As of Dec. 31, 2024, management estimates
that liquidity resources were insufficient to meet the Company's
cash flow needs for the next twelve months. To address these
shortfalls, management plans to generate recurring product revenue
from PHEXXI and SOLOSEC, restructure current payables, and obtain
additional funding through measures such as the issuance of
preferred stock to Aditxt, as done under the amended A&R Merger
Agreement, non-dilutive financings, or potential collaborations and
partnerships with other companies, including licensing agreements
for PHEXXI and/or SOLOSEC in the U.S. or abroad, or other business
combinations.
As of Dec. 31, 2024, the Company had $23.79 million in total
assets, $90.26 million in total liabilities, $4.78 million in
convertible and redeemable preferred stock, and a total
stockholders' deficit of $71.26 million.
In its report dated March 23, 2025, the Company's auditor, BPM,
LLP, issued a "going concern" qualification, noting that the
Company has experienced recurring operational losses, negative cash
flows from operations since its inception, and a net capital
deficiency, all of which raise substantial doubt about its ability
to continue as a going concern.
As of Dec. 31, 2024, Evofem had a working capital deficit of $66.8
million and an accumulated deficit of $897.7 million. To date, the
Company has financed operations primarily through the issuance of
preferred stock, common stock and warrants, cash received from
private placement transactions, the issuance of convertible notes
and, to a lesser extent, product sales. As of Dec. 31, 2024, the
Company had approximately $0.7 million in cash and cash
equivalents, comprised entirely of restricted cash available for
use as prescribed in the Adjuvant Notes.
Evofem has incurred losses and negative cash flows from operating
activities since inception. In 2023, the Company focused on
further improving and increasing PHEXXI access and delivered third
consecutive year of PHEXXI net sales growth. The Company has
restructured many of its trade payables with extended terms and
implemented measures to better align cost structure with projected
revenues.
As of Feb. 28, 2025, Evofem had approximately $11.2 million in
accounts payable, with approximately $9.5 million being more than
90 days past due. The Company stated that if it cannot repay these
amounts, along with its existing debt, when they are due, and is
unable to extend the maturity dates or refinance them, it will
default.
"We cannot provide any assurances that we will be able to raise the
necessary amount of capital to repay these obligations or that we
will be able to extend the maturity dates or otherwise refinance
these obligations," the Company cautioned. "Upon a default, our
secured lenders would have the right to exercise their rights and
remedies to collect, which would include foreclosing on our assets.
Accordingly, a default would have a material adverse effect on our
business, and we would likely be forced to seek bankruptcy
protection."
The full text of the Form 10-K is available for free at:
https://www.sec.gov/Archives/edgar/data/1618835/000164117225000188/form10-k.htm
About Evofem
Evofem Biosciences, Inc. is a San Diego-based biopharmaceutical
company focused on sexual and reproductive health innovations. Its
first commercial product, PHEXXI, is a hormone-free prescription
contraceptive gel that was FDA-approved in 2020. In November 2024,
they re-launched SOLOSEC, an oral antimicrobial agent for treating
two common sexual health infections, following its acquisition of
global rights. The Company aims to expand its global presence
through partnerships and licensing agreements, such as the recent
licensing of PHEXXI commercial rights in the Middle East to Pharma
1 Drug Store, LLC.
EVOFEM BIOSCIENCES: To Cut PHEXXI Mfg Costs by 60% in Windtree Deal
-------------------------------------------------------------------
Evofem Biosciences, Inc. revealed that it has signed a License and
Supply Agreement (L&S Agreement) with Windtree Therapeutics, Inc.,
making Windtree Evofem's supplier partner for PHEXXI (lactic acid,
citric acid, and potassium bitartrate). This FDA-approved,
hormone-free contraceptive vaginal gel is applied 0 to 60 minutes
before intercourse and prevents pregnancy by maintaining the normal
vaginal biome, which has a slightly acidic pH that is inhospitable
to sperm.
Under the L&S Agreement, Windtree will leverage its manufacturing
contacts to reduce the cost to manufacture PHEXXI. Evofem expects
PHEXXI COGS will decrease by 55% to 60% from current levels.
Furthermore, there will be no cost to Evofem for the tech transfer
to the new manufacturer engaged by Windtree.
"Global expansion of PHEXXI has always been a critical mandate for
Evofem, but a significant hurdle has been high manufacturing costs
which make commercialization cost-prohibitive in many markets
outside of the U.S.," said Saundra Pelletier, CEO of Evofem. "The
meaningful decrease in the per-box cost of PHEXXI that we expect to
achieve with Windtree's assistance should allow Evofem to take
PHEXXI into new, price-sensitive global markets where there is
great need for non-hormonal contraceptives that women control. Our
goal is to empower women; to have PHEXXI available in all markets
around the world is a big step in that direction."
Jed Latkin, CEO of Windtree, noted, "Using our extensive contacts
across the globe, we have engaged with a pharmaceutical
manufacturer on the plan to produce PHEXXI at a far lower cost
while delivering the same high quality product that women and their
healthcare providers rely on for hormone-free contraception. We
look forward to collaborating with Evofem and our manufacturing
partner as we do the tech transfer and manufacture the initial
batches and validation batches in line with the FDA requirements."
Evofem maintains ownership of the asset and continues to
commercialize PHEXXI in the United States through its dedicated
sales team and internationally through strategic partnerships,
including its July 2024 license agreement with Emirati
pharmaceutical company Pharma 1 Drug Store, which plans to launch
the hormone-free contraceptive vaginal gel in the UAE following
approval by the Emirates Drug Establishment.
About Evofem
Evofem Biosciences, Inc. is a San Diego-based biopharmaceutical
company focused on sexual and reproductive health innovations. Its
first commercial product, PHEXXI, is a hormone-free prescription
contraceptive gel that was FDA-approved in 2020. In November 2024,
they re-launched SOLOSEC, an oral antimicrobial agent for treating
two common sexual health infections, following its acquisition of
global rights. The Company aims to expand its global presence
through partnerships and licensing agreements, such as the recent
licensing of PHEXXI commercial rights in the Middle East to Pharma
1 Drug Store, LLC.
In its report dated March 23, 2025, the Company's auditor, BPM,
LLP, issued a "going concern" qualification, citing that the
Company has suffered recurring losses from operations, negative
cash flows from operations since inception, and has a net capital
deficiency that raise substantial doubt about its ability to
continue as a going concern.
Evofem reported a net loss of $8.86 million for the year ending
Dec. 31, 2024, compared to a net income of $52.98 million in 2023.
As of Dec. 31, 2024, the Company had $23.79 million in total
assets, $90.26 million in total liabilities, $4.78 million in
convertible and redeemable preferred stock, and a total
stockholders' deficit of $71.26 million.
FIREFLY NEUROSCIENCE: CEO Gregory Lipschitz Reports Stock Holdings
------------------------------------------------------------------
Gregory Lipschitz, CEO and Director of Firefly Neuroscience, Inc.,
disclosed in a Form 3 filed with the U.S. Securities and Exchange
Commission that as of March 11, 2025, he beneficially owned 55,183
shares of common stock through an employee stock option with an
exercise price of $5.18, held indirectly by Bower Four Capital
Corporation, of which he is the sole stockholder.
Additionally, he was granted an option to purchase 32,650 shares of
common stock, subject to a vesting schedule over 36 months starting
from July 8, 2023.
A full-text copy of Mr. Lipschitz's SEC Report is available at:
https://tinyurl.com/bdhtxnn9
About Firefly
Firefly (NASDAQ: AIFF) (formerly WaveDancer, Inc.) is an Artificial
Intelligence company developing innovative solutions that improve
brain health outcomes for patients with neurological and mental
disorders. The FDA-510(k)-cleared Brain Network Analytics (BNA)
software platform is designed to advance diagnostic and treatment
approaches for individuals with mental illnesses and cognitive
disorders, such as depression, dementia, anxiety, concussions, and
attention-deficit/hyperactivity disorder (ADHD).
Tysons, Virginia-based CohnReznick LLP, the Company's auditor since
2012, issued a "going concern" qualification in its report dated
March 20, 2024, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
As of Sept. 30, 2024, Firefly Neuroscience had $5.31 million in
total assets, $2.54 million in total liabilities, and $2.78 million
in total stockholders' equity.
FIREFLY NEUROSCIENCE: CFO Reports Stock Option Ownership
--------------------------------------------------------
Paul Krzywicki, CFO of Firefly Neuroscience, Inc., disclosed in a
Form 3 filed with the U.S. Securities and Exchange Commission that
as of March 11, 2025, he beneficially owned an option to purchase
11,024 shares of common stock at an exercise price of $5.18. These
shares are subject to a vesting schedule, with the option shares
vesting in equal installments at the end of each calendar month
over a 36-month period beginning on March 1, 2024.
A full-text copy of Mr. Krzywicki's SEC Report is available at:
https://tinyurl.com/35cym27u
About Firefly
Firefly (NASDAQ: AIFF) (formerly WaveDancer, Inc.) is an Artificial
Intelligence company developing innovative solutions that improve
brain health outcomes for patients with neurological and mental
disorders. The FDA-510(k)-cleared Brain Network Analytics (BNA)
software platform is designed to advance diagnostic and treatment
approaches for individuals with mental illnesses and cognitive
disorders, such as depression, dementia, anxiety, concussions, and
attention-deficit/hyperactivity disorder (ADHD).
Tysons, Virginia-based CohnReznick LLP, the Company's auditor since
2012, issued a "going concern" qualification in its report dated
March 20, 2024, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
As of Sept. 30, 2024, Firefly Neuroscience had $5.31 million in
total assets, $2.54 million in total liabilities, and $2.78 million
in total stockholders' equity.
FIREFLY NEUROSCIENCE: Chairman Arun Menawat Reports Stock Holdings
------------------------------------------------------------------
Arun Menawat, Chairman and Director of Firefly Neuroscience, Inc.
[AIFF], disclosed in a Form 3 filed with the U.S. Securities and
Exchange Commission that as of March 11, 2025, he beneficially
owned 99,405 shares of common stock directly.
Additionally, he holds an option to purchase 64,381 shares of
common stock at an exercise price of $5.18, subject to a vesting
schedule in which the option shares vest in equal installments at
the end of each calendar month over a 36-month period beginning on
July 8, 2023.
A full-text copy of Mr. Menawat's SEC Report is available at:
https://tinyurl.com/mryt8byt
About Firefly
Firefly (NASDAQ: AIFF) (formerly WaveDancer, Inc.) is an Artificial
Intelligence company developing innovative solutions that improve
brain health outcomes for patients with neurological and mental
disorders. The FDA-510(k)-cleared Brain Network Analytics (BNA)
software platform is designed to advance diagnostic and treatment
approaches for individuals with mental illnesses and cognitive
disorders, such as depression, dementia, anxiety, concussions, and
attention-deficit/hyperactivity disorder (ADHD).
Tysons, Virginia-based CohnReznick LLP, the Company's auditor since
2012, issued a "going concern" qualification in its report dated
March 20, 2024, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
As of Sept. 30, 2024, Firefly Neuroscience had $5.31 million in
total assets, $2.54 million in total liabilities, and $2.78 million
in total stockholders' equity.
FIREFLY NEUROSCIENCE: David DeCaprio Reports Stock Option Ownership
-------------------------------------------------------------------
David DeCaprio, Director of Firefly Neuroscience, Inc., disclosed
in a Form 3 filed with the U.S. Securities and Exchange Commission
that as of March 11, 2025, he beneficially owned an option to
purchase 9,198 shares of common stock at an exercise price of
$5.58. These shares are subject to a vesting schedule, with the
option shares vesting in equal installments at the end of each
calendar month over a 36-month period beginning on July 8, 2023.
A full-text copy of Mr. DeCaprio's SEC Report is available at:
https://tinyurl.com/4zerux58
About Firefly
Firefly (NASDAQ: AIFF) (formerly WaveDancer, Inc.) is an Artificial
Intelligence company developing innovative solutions that improve
brain health outcomes for patients with neurological and mental
disorders. The FDA-510(k)-cleared Brain Network Analytics (BNA)
software platform is designed to advance diagnostic and treatment
approaches for individuals with mental illnesses and cognitive
disorders, such as depression, dementia, anxiety, concussions, and
attention-deficit/hyperactivity disorder (ADHD).
Tysons, Virginia-based CohnReznick LLP, the Company's auditor since
2012, issued a "going concern" qualification in its report dated
March 20, 2024, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
As of Sept. 30, 2024, Firefly Neuroscience had $5.31 million in
total assets, $2.54 million in total liabilities, and $2.78 million
in total stockholders' equity.
FIREFLY NEUROSCIENCE: Reshuffles Board, Grants Equity Awards to CFO
-------------------------------------------------------------------
Firefly Neuroscience, Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that Greg
Lipschitz resigned from his position as the Executive Chairman of
the Company, effective immediately.
Mr. Lipschitz remains as a director of the Company. His resignation
was not related to any disagreement regarding the Company's
operations, policies or practices.
On March 10, 2025, the board of directors of the Company elected
Arun Menawat as the Chairman of the Company, effective immediately.
In connection with such appointment, Mr. Menawat no longer serves
as a member of the Audit Committee of the Board of Directors or the
chairperson of the Compensation Committee of the Board of
Directors. The Board appointed David DeCaprio as a member of the
Audit Committee and Stella Vnook as a member of the Compensation
Committee. In addition, Mr. DeCaprio was elected as the chairperson
of the Compensation Committee.
On March 10, 2025, the Compensation Committee granted an incentive
stock option to purchase 15,000 shares of the Company's common
stock, par value $0.0001 per share, and a restricted award of
10,000 restricted stock units to Paul Krzywicki, the Chief
Financial Officer of the Company, under the Firefly Neuroscience,
Inc. 2024 Long-Term Incentive Plan, subject to the Company's
standard form of incentive stock option agreement and restricted
stock unit agreement for the Plan.
About Firefly
Firefly (NASDAQ: AIFF) (formerly WaveDancer, Inc.) is an Artificial
Intelligence company developing innovative solutions that improve
brain health outcomes for patients with neurological and mental
disorders. The FDA-510(k)-cleared Brain Network Analytics (BNA)
software platform is designed to advance diagnostic and treatment
approaches for individuals with mental illnesses and cognitive
disorders, such as depression, dementia, anxiety, concussions, and
attention-deficit/hyperactivity disorder (ADHD).
Tysons, Virginia-based CohnReznick LLP, the Company's auditor since
2012, issued a "going concern" qualification in its report dated
March 20, 2024, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
As of Sept. 30, 2024, Firefly Neuroscience had $5.31 million in
total assets, $2.54 million in total liabilities, and $2.78 million
in total stockholders' equity.
FIRST MODE: Gets Court Confirmation for Chapter 11 Plan
-------------------------------------------------------
Vince Sullivan of Law360 Bankruptcy Authority reports that First
Mode Holdings, which manufactures hybrid engines for heavy-duty
vehicles, received Delaware bankruptcy court approval on Wednesday,
March 19, 2025, to advance its Chapter 11 plan, ensuring full
recoveries for unsecured creditors.
As reported in the Troubled Company Reporter on March 3, 2025, the
U.S. Bankruptcy Court for the District of Delaware held a hearing
on March 26, 2025, at 9:30 a.m. (prevailing Eastern Time) to
confirm the first amended joint Chapter 11 plan of liquidation of
First Mode Holdings Inc. and it debtor-affiliates. Objections to
the confirmation of the Plan, if any, are due on March 14, 2025, at
4:00 p.m.
The TCR Reporter on Feb. 24, 2025, also reported that the Court
approved the adequacy of the disclosure statement explaining the
Plan filed by the Debtors. The voting deadline to accept or reject
the Plan is 4:00 p.m. Eastern Time on March 14, 2025, unless
extended by the Debtors. The record date for determining which
holders of claims may vote on the Plan was Feb. 5, 2025.
Terms of the Plan
The Debtors said they believe that the implementation of the Plan
is in the best interests of the Debtors and their stakeholders.
The Debtors are soliciting votes in favor of the Plan from Holders
of General Unsecured Claims. For all of the reasons described in
this Disclosure Statement, the Debtors urge you to return your
Ballot accepting the Plan by the Voting Deadline, which is on
March
14, 2025, at 4:00 p.m. Eastern Time.
On Dec. 15, 2024, the Debtors entered into that certain Asset
Purchase Agreement with Cummins Inc. ("Cummins" or the "Stalking
Horse Bidder" and the Asset Purchase Agreement, the "Stalking
Horse
APA"). The Stalking Horse APA provides that the Stalking Horse
Bidder will purchase the majority of the Debtors' assets, along
with various assets of certain non-Debtor affiliates, for a
purchase price of $15 million, plus the assumption of certain
Assumed Liabilities (as defined in the Stalking Horse APA).
Importantly, the Stalking Horse APA also contemplates that a
significant number of the Company's employees will transition to
Cummins following consummation of the sale.
Under the Bidding Procedures outlined in the Bidding Procedures
Motion, the deadline for interested parties to submit Qualified
Bids was Jan. 27, 2025 at 4:00 pm (prevailing Eastern Time) (the
"Qualified Bid Deadline"). As of the Qualified Bid Deadline, the
Debtors did not receive any Qualified Bids other than the Stalking
Horse Bid. Accordingly, the Debtors cancelled the Auction and
designated the Stalking Horse Bidder as the successful bidder.
Concurrently with the Stalking Horse APA, the Debtors entered into
that certain Restructuring Support Agreement ("RSA") with Anglo
American International Holdings Limited ("AAIH" or "Prepetition
Secured Lender" or "DIP Lender") and Anglo American Technical &
Sustainability Ltd ("AATS"). The RSA provides, among other
things,
for the Debtors to complete the sale to the Stalking Horse Bidder,
or another bidder that submits a higher or otherwise better bid,
and pursue confirmation of the Plan.
According to the Debtors, their Plan is a liquidating plan that
contemplates a monetary contribution by AATS, AAIH, Anglo American
Services (UK) Ltd. ("AAS"), and other affiliates ("Anglo
American")
and a consensual subordination of its claims. The Plan is
premised
on the consummation of a value-maximizing sale followed by an
efficient and orderly wind-down of the estates.
The material terms of the Plan include, among others, the
following:
a) Subject to the terms and conditions outlined in the Plan and
the
RSA, Anglo American will provide $28,870,592, subject to
adjustment
as set forth in the Plan (the "Anglo Funding Amount") to the
Debtors to fund distributions to holders of Allowed Claims under
the Plan and the wind down of the Debtors.
b) Anglo Americana's DIP Claims and Prepetition Secured Lender
Claims will be subordinated as and to the extent provided in the
Plan. Specifically, Anglo American is not expected to receive a
recovery on account of these Claims, other than from the sale
proceeds, unless all Allowed General Unsecured Claims of
Participating GUC Holders are to be paid in full.
c) Holders of General Unsecured Claims will receive a pro rata
share of the Distributable Proceeds if they are Participating GUC
Holders. The estimated recovery for Participating GUC Holders is
100%. Holders of General Unsecured Claims that are not
Participating GUC Holders will receive no recovery on account of
their General Unsecured Claims. To be a Participating GUC Holder,
a Holder of a General Unsecured Claim must:
1) either accept the Plan or abstain from
voting on the Plan, and
2) opt into the third party releases.
d) Holders of Equity Interests will receive no distribution on
account of their Equity Interests. On the Effective Date, all
Equity Interests will be canceled and extinguished and will be of
no further force or effect.
e) The Debtors and the Releasing Parties will release the
Released
Parties from various claims and causes of action, as set forth in
the Plan.
f) Pursuant to the Plan Administration Agreement,5 the Plan
Administrator will, among other things, oversee the administration
process of the Plan, which will provide for the wind down of the
Debtors.
The Plan constitutes a separate Plan for each Debtor for the
resolution of outstanding Claims and Interests pursuant to the
Bankruptcy Code. Each Debtor is a proponent of the Plan within
the
meaning of section 1129 of the Bankruptcy Code. The classification
of Claims and Interests set forth in the Plan will be deemed to
apply separately with respect to each Plan proposed by each
Debtor,
as applicable. The Plan provides for consolidation of the Debtors
solely for purposes of voting, Confirmation, and distribution, but
not for any other purpose. The Debtors reserve the right to seek
substantive consolidation of the Debtors in connection with
Confirmation, but substantive consolidation will not change the
distributions to Holders of Claims compared to what is proposed in
the Plan.
Est. Est.
Claim Class Status Amount Recovery
----- ----- ---------- ---------- --------
1 Other Unimpaired $1,000,000 100%
Priority
Claim
2 Other Unimpaired $800,000 100%
secured
claim
3 Prepetition Unimpaired/ $76,000,000 100%
Secured Impaired
loan
claims
4 General Unimpaired/ $25,900,000 100%
Unsecured Impaired
Claims
5 Intercompany Unimpaired/ N/A N/A
Claims Impaired
6 Intercompany Unimpaired/ N/A N/A
Interests Impaired
7 Equity Impaired N/A N/A
Interests
A full-text copy of the disclosure statement explaining the first
amended joint Chapter 11 plan of liquidation is available for free
at https://tinyurl.com/3d94tn98
If you wish to review the Debtors' plan, you may receive a copy of
the plan for free of charge from Omni Agent Solutions, the voting
and claims agent retained by the Debtors in these Chapter 11
cases,
by (i) calling the Debtors' restructuring agent at 866-771-0558
(US
& Canada Toll Free) or 747-288-6101 (international); (ii) visiting
the Debtors' restructuring website at
https://omniagentsolutions.com/FirstMode; and (iiI) sending an
email to FirstModelInquiries@OmniAgent.com. You may obtain copies
of any pleadings filed in these Chapter 11 cases for a free via
PACER at http://deb.uscourts.govor free of charge at
https://omniagentsolutions.com/FirstMode.
About First Mode Holdings
First Mode Holdings, Inc. is a multinational decarbonization
company that designs, manufactures, and distributes hybrid battery
systems and hydrogen fuel cell technologies for heavy duty mining
and rail vehicles, along with hydrogen refueling equipment.
First Mode Holdings, Inc. and Synchronous LLC filed for voluntary
petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.,
Lead Case No. 24-12794) on Dec. 15, 2024. In their petitions signed
by Colin Mark Freed as chief financial officer, the Debtors
reported consolidated assets of $10 million to $50 million and
consolidated liabilities of $50 million to $100 million.
The Hon. Judge Karen B. Owens oversees the cases.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP, as
ankruptcy counsel and Latham & Watkins LLP as bankruptcy
co-counsel. PJT Partners serves as investment banker to the
Debtors, while M3 Partners LP acts as financial advisor. Omni Agent
Solutions Inc is the claims and noticing agent for the
Debtors.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of First Mode
Holdings, Inc. and Synchronous, LLC.
FOOTHILL AND TOWNE: Taps Law Offices of Stephen R. Wade as Counsel
------------------------------------------------------------------
Foothill and Towne LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of California the Law Offices of
Stephen R. Wade as its bankruptcy counsel.
The firm will render these services:
a. advise the Debtor with respect to compliance with the
requirement of the Office of the U.S. Trustee;
b. advise the Debtor concerning the requirements of the
bankruptcy court, the Federal Rules of Bankruptcy Procedure, the
Local Rules, and the Central District of California;
c. advise the Debtor regarding matters of bankruptcy law,
including the rights and remedies of the Debtor in regard to its
assets and the claims of its creditors;
d. conduct examinations of witnesses, claimants, or adverse
parties with respect to any necessary or pending litigation arising
in the bankruptcy case;
e. prepare or assist in the preparation of reports, accounts,
applications, motions, complaint, orders and other pleadings
required in the bankruptcy case;
f. represent the Debtor in any proceedings or hearings in the
bankruptcy court and any proceedings in other courts where the
Debtor's rights under the Bankruptcy Code may be litigated or
affected;
g. file any motions, applications or other pleadings
appropriate to effectuate the reorganization of the Debtor;
h. review claims and file objections to disputed claims;
i. assist the Debtor in the negotiation, formulation,
confirmation and implementation of a Chapter 11 plan of
reorganization;
j. assist the Debtor in negotiation with secured creditors;
k. serve as the Debtor's general insolvency counsel in
cooperation with any special counsel or other professionals
retained by the Debtor in the case; and
l. perform other necessary legal services.
The firm will be paid at these rates:
Stephen R. Wade $425 per hour
In addition, the firm will receive reimbursement for its
out-of-pocket expenses.
The firm received a retainer from the Debtor in the amount of
$27,000.
Stephen Wade, Esq., a partner at the firm, disclosed in a court
filing that his firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
Stephen R. Wade can be reached at:
Stephen R. Wade, Esq.
Law Offices of Stephen R. Wade P.C.
405 N. Indian Hill, Blvd.
Claremont, CA 91711
Tel: (909) 985-6500
Fax: (909) 912-8887
Email: srw@srwadelaw.com
About Foothill and Towne LLC
Foothill and Towne, LLC, a company in Irvine, Calif., filed Chapter
11 petition (Bankr. C.D. Calif. Case No. 25-10136) on January 17,
2025, with $1 million to $10 million in both assets and
liabilities.
Judge Theodor Albert oversees the case.
The Debtor is represented by Stephen R. Wade, Esq., of the Law
Offices of Stephen R. Wade.
FREIRICH FOODS: Court Extends Cash Collateral Access to May 2
-------------------------------------------------------------
Freirich Foods, Inc. received interim approval from the U.S.
Bankruptcy Court for the Middle District of North Carolina to use
cash collateral until May 2, marking the eighth extension since the
company's Chapter 11 filing.
The eighth interim order, signed by Judge Benjamin Kahn, approved
the use of cash collateral for payment of expenses set forth in the
company's budget.
As adequate protection for the use of its cash collateral, First
National Bank of Pennsylvania will receive payments as follows: (i)
net sale proceeds derived at closing from the cash portion of the
purchase price for Freirich Foods' assets and from collection of
accounts receivable in the amount of $1 million; and (ii) continued
monthly payments on or before the last day of each month in an
aggregate amount equal to interest accruing during the prior month
at the contract rate on the outstanding principal balance of the
bank's secured claim.
FNB reserves the right to seek further or additional protection of
its collateral, assert objections to the company's further use of
its cash collateral, or pursue any other rights or remedies
available to it.
The eighth interim order will remain in full force and effect until
the earliest of (i) entry of a further order by the court modifying
the terms of the eighth interim order; (ii) entry of an order
terminating the right to use cash collateral; (iii) the effective
date of any confirmed Chapter 11 plan; or (iv) dismissal or
conversion of the Chapter 11 case to one under Chapter 7.
A final hearing is scheduled for April 29.
About Freirich Foods
Freirich Foods, Inc. is a deli meat processor that produces dry
open-oven roasted products. It has been supplying specialty meats
to select grocers and delis since 1921. Although initially opened
in New York, the business is headquartered in Salisbury, N.C.,
today and has been managed by four generations of the Freirich
family.
Freirich Foods sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-50204) on March 20,
2024, with $13,015,005 in assets and $14,524,627 in liabilities.
Paul Bardinas, president of Freirich Foods, signed the petition.
Judge Benjamin A. Kahn oversees the case.
The Debtor tapped John A Northen, Esq., at Northen Blue, LLP as
legal counsel and The Finley Group, Inc. as financial advisor.
First National Bank of Pennsylvania, as secured creditor, is
represented by:
Matthew P. Weiner, Esq.
Stephanie E. Goodbar, Esq.
Poyner Spruill, LLP
P.O. Box 1801
Raleigh, NC 27602-1801
Telephone: (919) 783-6400
mweiner@poynerspruill.com
sgoodbar@poynerspruill.com
FRUGALITY INC: Jodi Daniel Dubose Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Jodi Daniel Dubose, Esq.,
at Stichter, Riedel, Blain & Postler P.A. as Subchapter V trustee
for Frugality, Inc.
Ms. Dubose will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Dubose declared that she is a disinterested person according
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jodi Daniel Dubose, Esq.
Stichter, Riedel, Blain & Postler P.A.
41 N. Jefferson Street, Suite 111
Pensacola, FL 32502
Phone: (850) 637-1836
Email: jdubose@srbp.com
About Frugality Inc.
Frugality Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-30177) on March 3,
2025, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Jerry C. Oldshue Jr. presides over the case.
Byron Wright, III, Esq. at Bruner Wright, P.A. represents the
Debtor as legal counsel.
GARZA COUNTY, TX: S&P Lowers GO Debt Long-Term Rating to 'BB+'
--------------------------------------------------------------
S&P Global Ratings lowered its long-term rating on Garza County,
Texas' general obligation (GO) debt to 'BB+' from 'A+' and removed
the ratings from CreditWatch with negative implications, where it
was placed on Sept. 27, 2024. The outlook is developing.
"The downgrade reflects our assessment that the general fund is
likely to post a deficit of as much as 50% in fiscal 2025,
resulting in a depletion of general fund cash that could cause
material liquidity pressures," said S&P Global Ratings credit
analyst Karolina Norris. "The downgrade also reflects our view of
very weak management, including the failure to make budget
adjustments to balance the budget."
The rating reflects the application of S&P's criteria "Methodology
For Rating U.S. Governments," published Sept. 9, 2024, on
RatingsDirect.
The six-month developing outlook reflects uncertainty regarding the
timing of when the county will be able to return to structural
balance. Its financial position could improve markedly with
revenues from the sale of the county's correctional facility or if
a contract with a new operator is put in place and generates
revenue; in this situation the rating could be raised. If the sale
of the facility or a new management contract do not materialize
quickly, the county will be severely challenged to bring revenues
and expenditures back in balance and there could be material
liquidity challenges for which the county does not currently have
any plans to address; in this situation, the rating could be
lowered.
Environmental, social, and governance (ESG) credit factors for this
change in ratings and CreditWatch status:
-- Risk management, culture, and oversight.
GFL ENVIRONMENTAL: S&P Raises Sr. Unsecured Notes Rating to 'BB-'
-----------------------------------------------------------------
S&P Global Ratings raised its issue-level rating on Toronto-based
environmental service company GFL Environmental Inc.'s senior
secured notes to 'BBB-' from 'BB+' and its issue-level rating on
the company's senior unsecured notes to 'BB-' from 'B+'.
Additionally, S&P revised its recovery rating on GFL's secured
notes to '1' from '2' and its recovery rating on its unsecured
notes to '5' from '6'. Finally, S&P placed its rating on the
company's 6.75% 2031 secured notes on CreditWatch with negative
implications and our rating on its unsecured notes on CreditWatch
with positive implications.
The upgrades reflect GFL's repayment of its term loan, 3.75%
secured note due 2025, and 5.125% secured notes due 2026 using the
proceeds from the sale of its Environmental Services business. The
repayment of these notes increased our recovery expectations for
both the secured and unsecured lenders. The '1' recovery rating on
the company's secured notes indicates our expectation for very high
(90%-100%; rounded estimate 95%) recovery in the event of a
default, while the '5' recovery rating on the unsecured notes
reflects S&P's expectation for modest (10%-30%; rounded estimate:
10%) recovery in the event of a default.
S&P said, "We placed our rating on GFL's 6.75% secured notes due
2031, and only these notes, on CreditWatch negative to reflect the
provisions within the debt agreement that triggers a collateral
release once the notes are rated in the investment-grade category
by two credit rating agencies. Subsequent to this rating action, we
understand that the conditions for the collateral release will be
met thereby resulting in these notes soon becoming unsecured, and
that the collateral would not return in the event the rating is
lowered. Our CreditWatch placement on these notes reflects the
likelihood that we will lower our rating on the 2031 notes by two
notches, to 'BB' from 'BBB-', shortly after they become unsecured.
"The positive CreditWatch on the company's unsecured obligations
reflects the likelihood that once the collateral securing the 2031
notes is released, which we expect will occur within days, the
recovery prospects for GFL's unsecured obligations will improve,
leading us to raise our rating on the debt."
Issue Ratings--Recovery Analysis
Key analytical factors
-- The '1' recovery rating on GFL's senior secured debt indicates
S&P's expectation for very high (90%-100%; rounded estimate: 95%)
recovery in the event of a default, which corresponds to a 'BBB-'
issue-level rating (two notches above the issuer credit rating).
-- The '5' recovery rating on the company's senior unsecured debt
indicates S&P's expectation for modest (10%-30%; rounded estimate:
10%) recovery in the event of a default, which corresponds to a
'BB-' issue-level rating (one notch below the issuer credit
rating).
-- S&P's simulated default scenario contemplates a default in 2030
stemming from the loss of customer contracts, heightened
competition, and margin erosion caused by an unexpected increase in
costs related to acquisition integration issues.
-- In this scenario, GFL is unable to service its financial
obligations, prompting the need for it to restructure as a going
concern.
-- S&P's recovery analysis assumes a gross reorganization value
for the company of about C$5.1 billion, which reflects its
emergence EBITDA estimate of about C$845 million and a 6x
multiple.
Simulated default assumptions
-- Simulated year of default: 2030
-- Revolver to be 85% drawn at default
-- Emergence EBITDA: About C$845 million
-- Multiple: 6x
-- Gross recovery value: About C$5.1 billion
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): C$4.8
billion
-- Total value available to secured first-lien debt claims: C$4.8
billion
-- Secured first-lien debt claims: C$4.2 billion
--Recovery expectations: 90%-100% (rounded estimate: 95%)
-- Total value available to unsecured claims: C$571 million
-- Senior unsecured debt and pari-passu claims: C$4.1 billion
--Recovery expectations: 10%-30% (rounded estimate: 10%)
Note: All debt amounts include six months of prepetition interest.
Ratings list
Upgraded; Recovery Rating Revised
To From
GFL Environmental Inc.
Senior Unsecured BB-/Watch Pos B+ /Watch Pos
Recovery Rating 5(10%) 6(0%)
Upgraded; CreditWatch Action; Recovery Rating Revised
To From
GFL Environmental Inc.
Senior Secured
US$1 bil 6.75% callable nts
due 01/15/2031 BBB-/Watch Neg BB+/Watch Pos
Recovery Rating 1(95%) 2(75%)
Upgraded; Off CreditWatch; Recovery Rating Revised
To From
GFL Environmental Inc.
Senior Secured BBB- BB+/Watch Pos
Recovery Rating 1(95%) 2(75%)
GO LAB: April 2 Deadline Set for Panel Questionnaires
-----------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy cases of GO Lab, Inc., et
al.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://tinyurl.com/yck8yjux and return by email it to
Linda Casey, Esq -- linda.casey@usdoj.gov -- at the Office of the
United States Trustee so that it is received no later than
Wednesday, April 2, 2025 at 4:00 p.m. Eastern Time.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About GO LAB
GO Lab, Inc. and GO Lab Madison, LLC are a start-up manufacturer
based in Madison, Maine, specializing in high-performing,
dry-process wood fiber construction insulation. Founded in 2017,
the Company produces three commercial products: TimberBatt,
TimberFill, and TimberBoard, all made from clean softwood
residuals sourced from sawmills and small-diameter trees.
GO Lab, Inc. and GO Lab Madison, LLC sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Del., Lead Case No. 25-10557
) on March 25, 2025. In the petition, the Debtors reported total
assets of $500,000 to $1 million and total debts of $10 million to
$50 million. The petitions were signed by Matthew O'Malia as
president and CEO.
The Honorable Bankruptcy Judge Karen B Owens handles the case.
The Debtors tapped Cozen O'Connor to serve as their general
bankruptcy counsel. Pierce Atwood LLP is the Debtors' special
counsel for corporate matters. Nixon Peabody LLP is the Debtors'
special counsel for tax and bond matters. Jefferies LLC acts as
investment banker to the Debtors, and Berry Dunn McNeil & Parker
LLC acts as accountants to the Debtors. The Debtors' claims and
noticing agent is Omni Agent Solutions.
HANSEN KIDS: Seeks to Use Cash Collateral
-----------------------------------------
Hansen Kids, LLC asked the U.S. Bankruptcy Court for the Western
District of Michigan for authority to use cash collateral and
provide adequate protection.
The Debtor needs to use cash collateral to meet professional
administrator fee obligations, sustain its operations, and preserve
its assets for the benefit of its creditors.
The value of the Debtor's cash collateral is approximately $52,191
which includes the Debtor's cash, bank accounts, accounts
receivable, pre-paid taxes, and inventory. The Debtor has no
anticipated income or accounts receivable but expects to obtain a
post-petition loan of $7,500 to pay the anticipated expenditures.
The parties that may assert an interest in the cash collateral are
JP Morgan Chase Bank, N.A., Celtic Bank, Bay First National Bank,
and Flat World Global Solutions.
As adequate protection, the secured creditors will be granted
continuing and replacement security interests in liens on all of
the Debtor's post-petition property.
The Debtor also will maintain and timely pay the premiums for
insurance adequately covering all of its assets without reductions
in the type or amount of coverage, listing JP Morgan Chase Bank,
N.A. as loss payee, and will provide proof of the insurance upon
request. Notice of any termination of insurance will be provided to
JP Morgan Chase Bank, N.A., within 48 hours of the notice.
The Debtor's use of cash collateral pursuant to the order will
cease, after notice and hearing, upon the occurrence of one of the
following:
(i) Debtor fails to comply with its promises of adequate
assurance in any fashion;
(ii) the appointment of a Chapter 11 trustee, other than the
Subchapter V Trustee;
(iii) conversion of the Chapter 11 proceeding to a Chapter 7;
(iv) the Chapter 11 proceeding is dismissed without the consent
of the secured creditors; or
(v) a material diminution in the amount of the Debtor's cash
collateral.
A court hearing is set for April 22.
About Hansen Kids LLC
Hansen Kids LLC based in Charlevoix, Michigan, specializes in
eco-friendly baby products. Their flagship product is the Andy
Pandy Premium Bamboo Disposable Diaper, which is marketed as a
biodegradable and chemical-free alternative to traditional diapers.
In addition to diapers, Hansen Kids offers other baby care items,
including training pants, bath & baby products, and toys. Hansen
Kids has also expanded its product line to include the Andy Pandy
Baltic Amber Teething Necklace, which is handcrafted in Lithuania
and marketed as a natural remedy for teething discomfort.
Hansen Kids LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mich. Case No. 25-00345) on February
11, 2025. In its petition, the Debtor reports total assets of
$302,191 and total liabilities of $1,149,510
Honorable Bankruptcy Judge James W. Boyd handles the case.
The Debtor is represented by Jeffrey C. Alandt, Esq., at the Law
Office of Jeffrey C. Alandt.
Bay First National Bank, as creditor, is represented by:
Lisa A. Hall, Esq.
Plunkett Cooney
333 Bridge St. NW, Ste. 530
Grand Rapids, MI 49504
Tel: (616) 752-4615
Email: lhall@plunkettcooney.com
HARRCO TRANSPORTATION: Linda Leali Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Linda Leali, Esq., as
Subchapter V trustee for Harrco Transportation Services Inc.
Ms. Leali will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Leali declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Linda M. Leali
Linda M. Leali, P.A.
2525 Ponce De Leon Blvd., Suite 300
Coral Gables, FL 33134
Telephone: (305) 341-0671, ext. 1
Facsimile: (786) 294-6671
Email: leali@lealilaw.com
About Harrco Transportation Services
Harrco Transportation Services Inc. sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12323)
on March 3, 2025, with $0 to $50,000 in assets and liabilities.
Judge Peter D. Russin presides over the case.
Joe M. Grant, Esq. represents the Debtor as legal counsel.
HARRCO VAN LINES: Linda Leali Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 21 appointed Linda Leali, Esq., as
Subchapter V trustee for Harrco Van Lines Incorporated.
Ms. Leali will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Leali declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Linda M. Leali
Linda M. Leali, P.A.
2525 Ponce De Leon Blvd., Suite 300
Coral Gables, FL 33134
Telephone: (305) 341-0671, ext. 1
Facsimile: (786) 294-6671
Email: leali@lealilaw.com
About Harrco Van Lines
Harrco Van Lines Incorporated sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12324) on
March 3, 2025, with $0 to $50,000 in assets and liabilities.
Judge Peter D. Russin presides over the case.
Joe M. Grant, Esq. represents the Debtor as legal counsel.
HEALTH DRIP: Seeks Chapter 11 Bankruptcy in Texas
-------------------------------------------------
On March 24, 2025, Health Drip PLLC filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Northern District of Texas.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 5,000 and 10,000 creditors. The
petition states funds will be available to unsecured creditors.
About Health Drip PLLC
Health Drip PLLC, d/b/a 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.
Health Drip PLLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-41012) on March 24,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by M. Jermaine Watson, Esq. at CANTEY
HANGER, LLP.
HELIUS MEDICAL: Reports $11.7M 2024 Loss, Faces Funding Uncertainty
-------------------------------------------------------------------
Helius Medical Technologies, Inc., filed its annual report on Form
10-K with the Securities and Exchange Commission, reporting a net
loss of $11.74 million on total revenue of $520,000 for the year
ending Dec. 31, 2024, compared to a net loss of $8.85 million on
total revenue of $644,000 for the year ending Dec. 31, 2023.
As of Dec. 31, 2024, the Company reported $3.54 million in total
assets, $2.48 million in total liabilities, and $1.06 million in
total stockholders' equity. Additionally, the Company had cash and
cash equivalents of $1.1 million as of Dec. 31, 2024.
Since its inception, Helius has experienced significant net losses.
For the years ending Dec. 31, 2024, and 2023, the Company used
cash in operating activities amounting to $11.1 million and $10.4
million, respectively. As of Dec. 31, 2024, the Company has
accumulated a deficit of $171.7 million. These losses have
primarily resulted from the substantial costs incurred in
connection with its design, manufacturing, and development
activities, research and development expenditures, the
establishment of its commercial infrastructure, stock-based
compensation, legal fees, advertising, marketing, investor
relations, and general and administrative expenses associated with
its operations. Despite receiving a medical device license from
Health Canada for marketing the PoNS device in Canada, as well as
marketing authorization from the FDA for its sale in the United
States and from the TGA in Australia, the Company anticipates
continuing to incur significant losses for the foreseeable future
as it persists in its efforts to expand its commercialization
initiatives.
In its report dated March 25, 2025, the Company's auditor since
2022, Baker Tilly US, LLP, issued a "going concern" qualification,
citing that the Company has recurring losses from operations and an
accumulated deficit, expects to incur losses for the foreseeable
future, and requires additional working capital. These factors
raise substantial doubt about their ability to continue as a going
concern.
Currently, Helius operates with a very small management team, and
its success is heavily reliant on the abilities, expertise, and
judgment of senior management. The Company maintains that, while
employment agreements are generally used to retain key employees,
such agreements do not guarantee the continued services of these
individuals. According to the Company, the loss of key personnel
could have a material adverse effect on its business, operating
results, or financial condition.
To fund its ongoing activities, the Company intends to utilize its
current cash and cash equivalents, revenue from the sale of its
PoNS device in the U.S. and Canada, and additional capital raised
through equity or debt financings. However, the Company provides
no assurance that it will be successful in raising additional
capital or that such capital, if available, will be on terms that
are acceptable to the Company. If the Company is unable to raise
sufficient additional capital, the Company may be compelled to
reduce the scope of its operations.
"If we are unable to obtain additional financing as needed, we may
be forced to reduce the scope of our operations and planned capital
expenditures or sell certain assets, including intellectual
property, and we may be forced to cease or wind down operations,
seek protection under the provisions of the U.S. Bankruptcy Code,
or liquidate and dissolve our company, which would have a material
adverse effect on the value of our common stock," the Company
warned in the report.
The complete text of the Form 10-K is available for free at:
https://www.sec.gov/Archives/edgar/data/1610853/000155837025003619/hsdt-20241231x10k.htm
About Helius Medical
Headquartered in Newtown, Pennsylvania, Helius Medical
Technologies, Inc. (www.heliusmedical.com) is a neurotechnology
company dedicated to neurological wellness. The Company's mission
is to develop, license, or acquire non-implantable technologies
aimed at reducing the symptoms of neurological disease or trauma.
Its flagship product, the Portable Neuromodulation Stimulator
(PoNS), is an innovative, non-implantable medical device consisting
of a controller and a mouthpiece that delivers mild electrical
stimulation to the surface of the tongue, offering treatment for
gait deficits and chronic balance deficits.
HIGHRISE ELECTRICAL: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Highrise Electrical Technologies, Inc.
10702 Fallstone Rd
Houston, TX 77099
Business Description: Founded in 1993, Electrical Technologies,
Inc., operating under the trade name
Highrise Electric, is a full-service
electrical contracting company. The
Company specializes in design assistance,
consulting, estimating, scheduling,
procurement, installation, troubleshooting,
energy management, and preventive
maintenance services. Serving both
residential and commercial sectors, the
Company brings expertise to large-scale
projects, including high-rise buildings.
Chapter 11 Petition Date: March 27, 2025
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 25-31634
Debtor's Counsel: Annie Catmull, Esq.
O'CONNORWECHSLER PLLC
4400 Post Oak Parkway
Ste. 2360
Houston, TX 77027
Tel: 281-814-5977
Email: aecatmull@o-w-law.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ron Eitze as president.
The Debtor failed to provide a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/H4OCY6I/Highrise_Electrical_Technologies__txsbke-25-31634__0001.0.pdf?mcid=tGE4TAMA
HOYA MIDCO: S&P Alters Outlook to Stable, Affirms 'B+' ICR
----------------------------------------------------------
S&P Global Ratings revised its outlook on Hoya Midco LLC's (d/b/a
Vivid Seats) to stable from positive and affirmed all its ratings,
including its 'B+' issuer credit rating on the company.
The stable outlook reflects our expectation that Vivid Seats will
maintain S&P Global Ratings-adjusted gross leverage in the high-4x
area and report strong adjusted FOCF to debt in the 15%-20% area in
2025, in the face of intense competitive pressures in the secondary
ticketing market offsetting consumer demand and a stronger pipeline
of live events.
S&P said, "The stable outlook reflects our expectation that Vivid
Seats will maintain its S&P Global Ratings-adjusted gross leverage
in the high-4x area over the next 12 to 24 months. Previously, we
expected Vivid Seats to reduce its S&P Global Ratings-adjusted
gross leverage in 2024 below our 4x upgrade threshold due to strong
momentum in the business. However, significantly increased
competition by its secondary ticketing peers such as StubHub and an
unfavorable event mix have slowed the momentum in the business.
Furthermore, the company upsized its term loan borrowings in June
2024 by an additional $125 million, which increased gross leverage
by about 1.0x since the company has not allocated the proceeds
toward investments or debt paydown. We now forecast the company's
leverage to be about 4.8x in fiscal 2025, slightly up from 4.7x in
fiscal 2024 but still below our downside leverage trigger of 5.0x.
This incorporates about $156 million of balance sheet liabilities
related to the company's tax receivable agreement (TRA) with its
previous sponsor, GTCR, and approximately $21 million of lease
liabilities."
A strong 2025 events calendar is partially offset by elevated
competitive pressures. Gross order value (GOV) was down in the
second half of 2024 due to an unfavorable event mix compared to the
same period in 2023, where there was more stadium tour activity by
high-profile artists. S&P said, "In 2025, we expect the mix of
events to improve with more stadium events and for live
entertainment spending to remain healthy at 5%-10% growth as
stretched consumers continue to spend on experiences despite high
interest rates and high prices. However, heightened competition in
the industry has pressured GOV and revenue growth. Currently, we
expect Vivid Seats' GOV will be flat in 2025 as a strong events
calendar and robust demand for live events are offset by aggressive
marketing by competitors. We expect Vivid Seats to prioritize
healthy margins over volume by leveraging its loyalty program to
attract repeat buyers and SkyBox Drive platform for professional
resellers. Although not considered in our base case, if GOV is
pressured substantially, Vivid Seats could increase marketing spend
or lower its take rate such that margins compress below our
forecast. We forecast Vivid Seats to continue to generate EBITDA
margins of approximately 15%, accounting for software development
costs which we deduct in our calculation of EBITDA."
There is uncertainty regarding the company's use of its excess cash
given its elevated S&P Global Ratings-adjusted gross leverage. As
of Dec. 31, 2024, the company had about $243 million of cash on its
balance sheet. S&P said, "Despite an elevated competitive
environment in the secondary ticketing industry, we still expect
Vivid Seats to generate around $90 million to $100 million of
reported FOCF in 2025. Although we expect Vivid Seats to manage to
a 3x gross leverage ratio on a company-adjusted basis, our
adjustments for TRA and operating lease liabilities as well as
capitalized software development costs result in a roughly 2x
difference in our leverage calculations with the company's. We
believe the company's long-term leverage profile on our basis will
depend on how it chooses to allocate its excess available
cash–specifically, whether it chooses to spend more on marketing
and growth initiatives, accretive acquisitions, or share
repurchases. If Vivid Seats uses excess cash to reduce its
outstanding reported debt and tax receivable liabilities along with
EBITDA growth, we believe this could lead to a material improvement
in its S&P Global Ratings-adjusted credit metrics."
S&P said, "The stable outlook reflects our expectation that Vivid
Seats will maintain S&P Global Ratings-adjusted gross leverage in
the high-4x area and report strong adjusted FOCF to debt in the
15%-20% area in 2025, in the face of intense competitive pressures
in the secondary ticketing market offsetting consumer demand and a
stronger pipeline of live events."
S&P could lower the rating if it expected Vivid Seats to sustain
leverage above 5x for an extended period, likely resulting from a
combination of the following factors:
-- Macroeconomic challenges that significantly impede revenue and
EBITDA growth in 2025;
-- Elevated competition from ticketing peers such that Vivid Seats
loses substantial market share;
-- Increased regulatory actions within the secondary ticketing
industry;
-- Significant tax receivable liabilities placed on its balance
sheet; and
-- A shift to an aggressive financial policy where the company
uses its cash and placed incremental debt to fund high-priced
acquisitions.
S&P could raise the rating if we believe the company could sustain
leverage comfortably below 4x. This incorporates any changes to the
company's TRA liabilities and potential leveraging mergers and
acquisitions activity.
HUMPER EQUIPMENT: Seeks to Hire Avek IP LLC as Special Counsel
--------------------------------------------------------------
Humper Equipment, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Western District of Missouri to
employ Avek IP, LLC as special counsel.
The Debtors seeks to retain the firm to provide assistance with
securing certain beneficial trademarks.
Joseph L. Johnson, patent attorney at Avek IP, will charge $380 per
hour for his time and $210 per hour for associate attorney time.
Mr. Johnson assured the court that his firm does not represent or
hold any interest adverse to the estate and is a "disinterested
person" as the phrase is defined in section 101(14) of the
Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy
Code.
The firm can be reached through:
Joseph L. Johnson, Esq.
Avek IP, LLC
7285 W. 132nd Street, Suite 340
Overland Park, KS 66213
Tel: (913) 549-4700
Tel: (913) 303-3840
Email: JJohnson@avekip.com
About Humper Equipment, LLC
Humper Equipment LLC, a company in Strafford, Mo., filed Chapter 11
petition (Bankr. W.D. Miss. Case No. 24-60818) on December 12,
2024, with up to $50,000 in assets and $10 million to $50 million
in liabilities. James A. Keltner, sole member of Humper Equipment,
signed the petition.
Judge Brian T. Fenimore oversees the case.
The Debtor is represented by Sharon L. Stolte, Esq. at Sandberg
Phoenix & Von Gontard.
INCLAN PAINTING: Class 3 Unsecureds to Get 10% over 60 Months
-------------------------------------------------------------
Inclan Painting and Waterproofing, Corp., submitted an Amended Plan
of Reorganization under Subchapter V dated March 3, 2025.
The filing of the case herein through the implementation of the
Automatic Stay pursuant to Section 362(a) of the Bankruptcy Code
allowed it to resume collecting payments due and owing to it and
relived it of the costs and expense of defending complicated
construction lawsuits.
The largest the principal parties to potential claims that may
result from the ultimate resolution of the construction lawsuits
were covered by liability insurance and those creditors will be
paid by the insurance. The Debtor had incurred large pre-petition
debt to the United States Department of Treasury, Internal Revenue
Service which will be paid pursuant to Section 1129(a) (9) (C) of
the Bankruptcy Code.
The debtor's plan contemplates payment of twenty-five percent to
all other creditors over time. In addition to the resumption of it
collections of accounts receivable the debtor has begun to obtain
new work and will be able to fund the payments contemplated to its
creditors by this Plan of reorganization.
This case has been delayed by the failure to collect from at lease
one large subcontract and an action to collect in state court has
been filed. In addition, a reduction of new business to replace
completion of subcontracts being completed because of a serious
health condition of the debtor's principal who has since recovered.
New subcontracts are being obtained which will enable the Debtor to
meet payments contemplated under this Amended Plan of
Reorganization.
This Plan of Reorganization proposes to pay creditors of the Debtor
from ITS cash flow from operations.
This Plan provides for 1 class of secured claims; 3 Classes of
unsecured claims; and 1 Class of equity security holders. Unsecured
creditors (class 3), holding allowed claims will receive
distributions, which the proponent of this Plan has valued at
approximately twenty-five cents on the dollar over sixty months and
one hundred cents on the dollars to Class 4 administrative
convenience class in two payments over ninety days.
Class 2 consists of unsecured creditors that are participants
agreed to accept proceeds of Insurance policies applicable to each
claim in this class. This Class is unimpaired.
Class 3 consists of unsecured creditors and will be paid ten
percent of allowed claims by sixty monthly installments.
Class 4 consists of unsecured administrative convenience claims and
will receive payment in full in two payments this first on
confirmation of the debtors Plan of Reorganization and a second
payment ninety days thereafter.
The Debtor will implement this plan in accordance with provision of
Section 1123(a)(5) of the Code by retaining all of the property of
the estate, retaining the possession and services of its principal
who is also the source of contracts and subcontracts and based on
the treatment of its creditors will be able to fund the payments
pursuant to this plan.
A full-text copy of the Amended Plan dated March 3, 2025 is
available at https://urlcurt.com/u?l=grfSEa from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
Richard Siegmeister, Esq.
RICHARD SIEGMEISTER PA
3850 Bird Road, Floor 10
Miami, FL 33146
Tel: (305) 859-7376
E-mail: rspa111@att.net
rsaplaw@att.net
About Inclan Painting and Waterproofing
Inclan Painting and Waterproofing Corp. filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla.
Case No. 24-10488) on Jan. 19, 2024, with up to $50,000 in assets
and $1 million to $10 million in liabilities. Luis Inclan,
president, signed the petition.
Judge Laurel M. Isicoff oversees the case.
Richard Siegmeister, Esq., at Richard Siegmeister, PA, is the
Debtor's legal counsel.
INJAWE INC: Court Denies Bid to Use Cash Collateral
---------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York
issued an order denying Injawe Inc.'s motion to use cash
collateral.
The court denied the motion as moot following an agreement between
Injawe and Federal National Mortgage Association (Fannie Mae)
allowing foreclosure proceedings to move forward.
About Injawe Inc.
Injawe Inc. is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Injawe filed Chapter 11 petition (Bankr. E.D.N.Y. Case No.
24-43820) on Sept. 16, 2024, listing between $1 million and $10
million in assets and between $500,000 and $1 million in
liabilities. Dina John, president of Injawe, signed the petition.
Judge Elizabeth S. Stong handles the case.
The Debtor is represented by:
Narissa A. Joseph, Esq.
Law Office of Narissa A. Joseph
305 Broadway, Suite 1001
New York, NY 10007
Tel: 212-233-3060
Fax: 646-607-3335
Email: njosephlaw@aol.com
JAC RENTALS: Seeks Subchapter V Bankruptcy in Louisiana
-------------------------------------------------------
On March 24, 2025, JAC Rentals Excavators LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Western District
of Louisiana. According to court filing, the
Debtor reports $1,554,519 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About JAC Rentals Excavators LLC
JAC Rentals Excavators LLC 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.
JAC Rentals Excavators LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. La. Case No. 25-20139) on March
24, 2025. In its petition, the Debtor reports total assets of
$4,593,578 and total liabilities of $1,554,519.
Honorable Bankruptcy Judge John W. Kolwe handles the case.
The Debtor is represented by Wade N. Kelly, Esq. at WADE N KELLY,
LLC.
JAGUAR HEALTH: CEO, Board, and Investors Commit to $3.4M in Funding
-------------------------------------------------------------------
Jaguar Health, Inc., announced that its President and CEO, Lisa
Conte, together with three additional members of the Company's
Board of Directors, seven senior executives, and chosen
institutional and accredited investors have entered into securities
purchase agreements, pursuant to which the Company will issue up to
$3.448 million in total principal amount of convertible promissory
notes to these investors in a private placement priced at-market in
compliance with Nasdaq regulations. The Notes will have a
three-month maturity, will bear interest at 6% per annum, and will
be convertible immediately at the option of the Investors into
shares of the Company's common stock.
The Company will use the proceeds for working capital and other
general corporate purposes. In addition, the Company has agreed to
issue to the Investors unregistered warrants, which will be
exercisable immediately and will expire on the earlier of (i) five
years from the date of issuance, (ii) the consummation of a
fundamental transaction and (iii) the consummation of a liquidation
event.
The offering was expected to close on or about March 27, 2025,
subject to satisfaction of customary closing conditions. H.C.
Wainwright & Co. is acting as the exclusive placement agent for the
offering.
The securities mentioned above are being offered in a private
placement under Section 4(a)(2) of the Securities Act of 1933, as
amended, and/or Regulation D. These securities, including the
shares of common stock underlying the convertible notes and
warrants, have not been registered under the Securities Act or
state securities laws. Accordingly, such securities may not be
offered or sold in the United States except pursuant to an
effective registration statement or an applicable exemption from
the registration requirements of the Securities Act and such
applicable state securities laws. Pursuant to a registration
rights agreement with investors, the Company has agreed to file a
resale registration statement covering the resale of the shares of
common stock underlying the convertible notes and warrants.
About Jaguar Health
Jaguar Health, Inc. -- http://www.jaguar.health/-- is a commercial
stage pharmaceuticals company focused on developing novel
proprietary prescription medicines sustainably derived from plants
from rainforest areas for people and animals with gastrointestinal
distress, specifically associated with overactive bowel, which
includes symptoms such as chronic debilitating diarrhea, urgency,
bowel incontinence, and cramping pain. Jaguar family company Napo
Pharmaceuticals (Napo) focuses on developing and commercializing
human prescription pharmaceuticals for essential supportive care
and management of neglected gastrointestinal symptoms across
multiple complicated disease states. Napo's crofelemer is
FDA-approved under the brand name Mytesi for the symptomatic relief
of noninfectious diarrhea in adults with HIV/AIDS on antiretroviral
therapy. Jaguar family company Napo Therapeutics is an Italian
corporation Jaguar established in Milan, Italy in 2021 focused on
expanding crofelemer access in Europe and specifically for orphan
and/or rare diseases. Jaguar Animal Health is a Jaguar tradename.
Magdalena Biosciences, a joint venture formed by Jaguar and
Filament Health Corp. that emerged from Jaguar's Entheogen
Therapeutics Initiative (ETI), is focused on developing novel
prescription medicines derived from plants for mental health
indications.
Larkspur, California-based RBSM, LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company has an accumulated deficit,
recurring losses, and expects continuing future losses. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
The Company has incurred net losses since its inception. For the
years ended Dec. 31, 2023 and 2022, the Company had net losses of
$41.9 million and $48.4 million, respectively, and expects to incur
additional losses in the near-term future. At Dec. 31, 2023, the
Company had an accumulated deficit of $308.2 million and
accumulated comprehensive loss of $652,000. To date, the Company
has generated only limited revenue, and it may never achieve
revenue sufficient to offset its expenses.
LEADPOINT INC: Deadline to File Claims Set for April 11, 2025
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
set April 11, 2025, as the deadline for creditors of LeadPoint Inc.
d/b/a SecureRights.org d/b/a SecureRights to file proofs of claim
against the Debtor's bankruptcy estate.
The Court also set July 30, 2025, as the deadline for all
governmental units to file their claims against the Debtor.
The form to file a proof of claim can be obtained at
https://claims.leadpoint.com/. The form can also be obtained on
the Court's website at http://www.cacb.uscourts.govor visit the
intake area at any division of the Court.
Proofs of claim must be filed with the Court Clerk at:
U.S. Bankruptcy Court for the
Central District of California
21041 Burbank Boulevard
Woodland Hills, CA 91367
About LeadPoint Inc.
LeadPoint Inc., d/b/a SecureRights, is a technology-driven platform
that revolutionized the online lead generation industry by creating
the first web-based lead exchange in 2004. It uses proprietary
algorithms, machine learning, and feedback loops to validate and
score leads, enabling smarter matching and pricing. The platform
connects buyers and sellers of leads, providing a transparent and
secure environment for real-time data and consumer-initiated voice
leads across multiple verticals. With over 2,000 buyers and
hundreds of thousands of leads purchased each month, LeadPoint
offers significant value, control, and revenue for sellers in the
lead marketplace.
LeadPoint Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10179) on January 31,
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 Martin R. Barash handles the case.
The Debtor is represented by Ron Bender, Esq. at Levene, Neale,
Bender, Yoo & Golubchik L.L.P.
LFR31 VENTURES: Christy Brandon Named Subchapter V Trustee
----------------------------------------------------------
The Acting U.S. Trustee for Region 18 appointed Christy Brandon,
Esq., a practicing attorney in Bigfork, Mont., as Subchapter V
trustee for LFR3I Ventures, LLC.
Ms. Brandon will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Brandon declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christy L. Brandon
P.O. Box 1544
Bigfork, MT 59911
Phone: (406) 837-5445
Email: christy@brandonlawfirm.com
About LFR3I Ventures
LFR3I Ventures, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Wash. Case No. 25-00348) on February
27, 2025, with $500,001 to $1 million in assets and liabilities.
Christy Brandon, Esq., a practicing attorney in Bigfork, Mont.,
serves as Subchapter V trustee.
Judge Frederick P. Corbit presides over the case.
LIGADO NETWORKS: Deadline to File Claims Set for April 17, 2025
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware set April
17, 2025, at 5:00 p.m. (Prevailing Eastern Time) as the last date
and time for each person or entity to file proofs of claim against
Ligado Networks LLC and its debtor-affiliates.
The Court also set July 7, 2025, as the deadline for governmental
units to file their claims against the Debtors.
Each proof of claim, including supporting documentation, must be
filed so as to be actually received by the Claims and Noticing
Agent on or before the applicable Bar Date either (i)
electronically through the interface available through the "Submit
a Proof of Claim" page at
https://omniagentsolutions.com/Ligado-Claims; or (ii) at the
following addresses:
By first class mail, courier service, hand delivery, or overnight
mail, to:
Ligado Networks LLC, et al. Claims Processing
c/o Omni Agent Solutions
5955 De Soto Ave., Suite 100
Woodland Hills, CA 91367
Proofs of claim sent by facsimile, telecopy, or electronic mail
will not be accepted and
proofs of claim will be deemed timely filed only if they are
actually received by the Claims and
Noticing Agent on or before the applicable Bar Date.
About Ligado Networks
Ligado Networks, formerly LightSquared, provides mobile satellite
services. The Debtor's satellite and terrestrial solutions,
combined with powerful, lower mid-band spectrum, serve to
supplement and broaden mobile coverage across the United States and
Canada. On the Web: http://www.ligado.com/
On January 5, 2025, Ligado Networks LLC and certain of its
affiliates each filed a voluntary petition for relief under Chapter
11 of the United States Bankruptcy Code (Bankr. D. Del. Lead Case
No. 25-10006).
Perella Weinberg Partners LP is serving as investment banker to
Ligado, FTI Consulting, Inc. is serving as financial advisor,
Milbank LLP is serving as legal counsel, and Richards, Layton &
Finger P.A. is serving as co-counsel. Omni Agent Solutions LLC is
the claims agent.
An ad hoc group of first lien creditors is being advised by
Guggenheim Securities, LLC as financial advisor, and by Sidley
Austin LLP as counsel. An ad hoc group of crossholding creditors is
being advised by Kirkland & Ellis LLP.
LJB LLC: Trustee Taps Verdolino & Lowey as Accountant
-----------------------------------------------------
Mark G. DeGiacomo, the Chapter 11 Trustee of LJB, LLC, seeks
approval from the U.S. Bankruptcy Court for the Eastern District of
Massachusetts to employ Verdolino & Lowey, P.C. as his accountant.
The firm will render these services:
a. prepare and file on behalf of the estate all necessary tax
returns that may be required by federal, state or local law;
b. advise the Trustee regarding the tax implications of asset
recovery;
c. advise and assist the Trustee with respect to evaluating
and objecting to proofs of claim submitted by federal and state
taxing authorities;
d. assist the Trustee in reviewing and examining the books and
records of the Debtor with respect to potential preference and/or
fraudulent conveyance or transfer claims; and to assist the Trustee
with other tasks that the Trustee may require and reasonably
request.
The firm will be paid at these rates:
Principals $565/hr.
Managers $275 to $450/hr.
Staff $225 to $395/hr.
Bookkeepers $225 to $300/hr.
Clerical $95/hr.
In addition, the firm will seek reimbursement for expenses
incurred.
Craig Jalbert, a principal at Verdolino & Lowey, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Craig R. Jalbert, Esq.
Verdolino & Lowey PC
124 Washington Street
Foxboro, MA 02035
Telephone: (508) 543-1720
About LJB LLC
LJB LLC sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Mass. Case No. 24-12236) on November 7, 2024, with
$1 million to $10 million in both assets and liabilities. Kenneth
L. Brown, manager, signed the petition.
Judge Janet E Bostwick oversees the case.
Gary W. Cruickshank, Esq., represents the Debtor as legal counsel.
LOCAL EATERIES: Files Emergency Bid to Use Cash Collateral
----------------------------------------------------------
Local Eateries, Inc. and affiliates asked the U.S. Bankruptcy Court
for the Middle District of Tennessee, Nashville Division, for
authority to use cash collateral and provide adequate protection,
through April 4, 2025.
The Debtor needs to use cash collateral to fund the ordinary and
necessary operating expenses of the Debtors' business operations
Based on a review of the filed UCC-1s, the Debtors conclude that
the following priority is likely in effect with respect to the Cash
Collateral Lienholders:
a. Local Eateries, Inc.
i. Shopify Financing;
ii. Chris Roach;
iii. PIRS Capital;
iv. RDM Capital Funding d/b/a FinTap.
b. Local Eateries, LLC
i. Unknown Creditor;
ii. Manufactured Networks, Inc.;
iii. Chris Roach.
c. Porter Road Butcher Meat Company, LLC
i. Chris Roach
The Debtors assert that the only parties that may currently have an
interest in the Debtors' cash collateral, to the extent any such
interest may exist, are: Shopify Financing (Local Eateries, Inc.),
Chris Roach (Local Eateries, Inc.), and Unknown
Creditor/Manufactured Networks (Local Eateries, LLC).
As adequate protection for the limited use of cash collateral, the
Debtors intend to provide to the Cash Collateral Lienholders a
replacement lien in accordance with 11 U.S.C. sections 361(2) and
552(b) to the extent of cash collateral actually expended, and on
the same assets and in the same order of priority as currently
exists. Any such replacement lien will be to the same extent and
with the same validity and priority as the Cash Collateral
Lienholders' pre-petition liens, without the need to file or
execute any document as may otherwise be required under applicable
non-bankruptcy law.
A copy of the motion is available at https://urlcurt.com/u?l=vsdqVm
from PacerMonitor.com.
About Local Eateries Inc.
Local Eateries, Inc. operating as Porter Road, is a Nashville-based
butcher shop, specializing in US pasture-raised meats such as beef,
pork, chicken, and other market products, all free from hormones
and antibiotics. The Company operates a retail shop and provides
nationwide delivery via its online platform, offering premium,
dry-aged meats to customers across the U.S.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case Lead No. 25-01131) on March
17, 2025. In the petition signed by Chris Carter, co-founder, the
Debtor disclosed up to $10 million in assets and up to $50 million
in liabilities.
Judge Charles M Walker oversees the case.
R. Alex Payne, Esq., at Dunham Hildebrand Payne Waldron, PLLC,
represents the Debtor as legal counsel.
LONERO ENGINEERING: Court OKs Deal to Extend 'Challenge Period'
---------------------------------------------------------------
Lonero Engineering Co., Inc. obtained court approval of its
stipulation with Bridge Business Credit, LLC and the official
committee of unsecured creditors.
The stipulation extended the period for the creditors' committee to
raise challenges to Bridge Business Credit, the company's lender,
in connection with the use of the lender's cash collateral.
This extension would allow the parties to continue their
discussions without the cost and expense of formal litigation,
according to the stipulation approved by the U.S. Bankruptcy Court
for the Eastern District of Michigan.
The bankruptcy court on Feb. 24 issued a final order authorizing
Lonero to use cash collateral and granting the Bridge Business
Credit replacement security interests in, and liens on Lonero's
assets.
A copy of the stipulation is available for free at:
http://bankrupt.com/misc/LoneroEngineeringCo_mieb_25-40041_120.pdf
About Lonero Engineering Co.
Lonero Engineering Co., Inc. is a company based in Troy, Mich.,
which operates as a specialized machine shop providing precision
machining services for complex, close-tolerance applications.
Lonero sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. E.D. Mich. Case No. 25-40041) on January 3, 2025. In its
petition, the Debtor reported up to $50,000 in assets and up to
$500,000 in liabilities.
Judge Lisa S. Gretchko handles the case.
The Debtor is represented by Michael E. Baum, Esq., and John J.
Stockdale, Jr., Esq., at Schafer and Weiner, PLLC.
Bridge Business Credit, LLC, as lender, is represented by:
Ronald A. Spinner, Esq.
Miller, Canfield, Paddock and Stone, PLC
150 West Jefferson, Suite 2500
Detroit, MI 48226
Telephone: (313) 496-7829
Facsimile: (313) 496-7500
Email: spinner@millercanfield.com
MAINE CRAFT: Seeks Subchapter V Bankruptcy in Maine
---------------------------------------------------
On March 21, 2025, Maine Craft Distilling LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of Maine.
According to court filing, the Debtor reports $1,281,429 in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Maine Craft Distilling LLC
Maine Craft Distilling LLC produces and sells artisanal spirits
like Blueshine Blueberry Liquor, Ration Expedition Style Rum,
Sprigge Barrel Rested Gin, Black Cap Vodka, Whipple Tree Apple
Brandy, and Alchemy Dry Gin. The Company offers its products online
and at its physical public house location, where it also hosts
public events featuring live music.
Maine Craft Distilling LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Me. Case No.
25-20062 ) on March 21, 2025. In its petition, the Debtor reports
total assets as of March 17, 2025 amounting to $593,878 and total
liabilities as of March 17, 2025 of $1,281,429.
The Debtor is represented by Sam Anderson, Esq. at BERNSTEIN, SHUR,
SAWYER & NELSON, P.A.
MANA GROUP: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Mana Group Pharmacies, LLC
d/b/a Brown's Pharmacy
2021 N. MacArthur Blvd.
Suite 120
Irving, TX 75061
Business Description: Mana Group, operating as Brown's Pharmacy,
is an independent, locally owned pharmacy in
Irving, Texas, serving the Irving, Las
Colinas, and Greater Dallas-Fort Worth areas
since 1973. The pharmacy focuses on
providing personalized, friendly customer
service, distinguishing itself from larger
chain pharmacies. Services include
prescription refills, compounding, delivery,
vaccines, wound care, MEDSYNC (medication
synchronization), and PakMyMeds (a free
medication packaging service).
Additionally, the pharmacy acts as an Amazon
Hub, securely accepting and storing Amazon
packages for customers.
Chapter 11 Petition Date: March 27, 2025
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 25-31057
Debtor's Counsel: David R. Langston, Esq.
MULLIN HOARD & BROWN, L.L.P.
P.O. Box 2585
Lubbock, TX 79408
Tel: 806-765-7491
E-mail: drl@mhba.com
Total Assets: $332,938
Total Liabilities: $4,952,261
The petition was signed by Christopher Tapper as managing member.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/UGB6NKQ/Mana_Group_Pharmacies_LLC__txnbke-25-31057__0001.0.pdf?mcid=tGE4TAMA
MAPRAGENCY INC: Hires Allen Vellone Wolf Helfrich as Counsel
------------------------------------------------------------
MAPRagency, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Colorado to hire Allen Vellone Wolf Helfrich &
Factor P.C. as counsel.
The firm will handle all matters concerning the administration of
the Estate, including preparation of the bankruptcy statements and
schedules, a plan of reorganization and disclosure statement, and
any contested matters or adversary proceedings.
The firm will be paid at these rates:
Jeffrey Weinman $650 per hour
Katharine Sender $425 per hour
Paralegals $120 to $225 per hour
The firm received a prepetition retainer in the amount of $5,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jeffrey Weinman, Esq. a partner at Allen Vellone Wolf Helfrich &
Factor, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Jeffrey A. Weinman, Esq.
Bailey C. Pompea, Esq.
Allen Vellone Wolf Helfrich & Factor P.C.
1600 Stout Street, Suite 1900
Denver, CO 80202
Tel: (303) 534-4499
Email: JWeinman@allen-vellone.com
Email: BPompea@allen-vellone.com
About MAPRagency, Inc.
MAPRagency, Inc. now known as Comprise, is a Boulder-based public
relations and marketing agency that specializes in creative
services, digital marketing, web design, and public relations. The
Company focuses on delivering innovative strategies and solutions
for businesses to enhance their brand visibility and engagement.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 25-11092) on March 4,
2025. In the petition signed by Doyle Albee, CEO, the Debtor
disclosed up to $100,000 in assets and up to $10 million in
liabilities.
Judge Thomas B. McNamara oversees the case.
Jeffrey A. Weinman, Esq., at Allen Vellone Wolf Helfrich & Factor,
P.C., represents the Debtor as legal counsel.
MAPRAGENCY INC: Kevin Neiman Named Subchapter V Trustee
-------------------------------------------------------
The Acting U.S. Trustee for Region 19 appointed Kevin Neiman as
Subchapter V trustee for MAPRagency, Inc.
Mr. Neiman will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Neiman declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kevin S. Neiman
999 18th Street, Suite 1230 S
Denver, CO 80202
Tel: (303) 996-8637
Fax: (877) 611-6839
Email: trustee@ksnpc.com
About MAPRagency Inc.
MAPRagency, Inc., now known as Comprise, is a Boulder-based public
relations and marketing agency that specializes in creative
services, digital marketing, web design, and public relations. The
Company focuses on delivering innovative strategies and solutions
for businesses to enhance their brand visibility and engagement.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 25-11092) on March 4,
2025. In the petition signed by Doyle Albee, CEO, the Debtor
disclosed up to $100,000 in assets and up to $10 million in
liabilities.
Judge Thomas B. McNamara oversees the case.
Jeffrey A. Weinman, Esq., at Allen Vellone Wolf Helfrich & Factor,
P.C., represents the Debtor as legal counsel.
MARKUS CORP: Ira Bodenstein Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 11 appointed Ira Bodenstein as
Subchapter V trustee for Markus Corp.
Mr. Bodenstein will be paid an hourly fee of $500 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Bodenstein declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
About Markus Corporation
Markus Corp is an owner and operator of three semi-trucks and hauls
cargo for its client.
Markus filed Chapter 11 petition (Bankr. N.D. Ill. Case No.
25-03310) on March 4, 2025, listing up to $100,000 in assets and up
to $1 million in liabilities. Markus President Marek Kusmierczyk
signed the petition.
Judge Timothy A. Barnes oversees the case.
Arthur Corbin, Esq., at Corbin Law Firm, LLC, represents the Debtor
as bankruptcy counsel.
MARTIN MIDSTREAM: S&P Affirms 'B' ICR, Outlook Stable
-----------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on Martin
Midstream Partners L.P. (MMLP).
S&P said, "Our 'B+' issue-level rating and '2' recovery rating on
the company's second-lien notes are affirmed. The '2' recovery
rating indicates our expectation for substantial recovery (70%-90%;
rounded estimate: 70%) in the event of a default.
"The stable outlook on MMLP reflects our expectation it will
maintain leverage of 3.5x-4.0x and interest coverage of 2.25x-2.50x
in 2025. The outlook also reflects our expectation that MRMC's
credit quality will not deteriorate."
Following Martin Resource Management Corp.'s (MRMC) termination of
its acquisition of MMLP outstanding common units that it doesn't
already own, S&P no longer view MRMC's creditworthiness on a
consolidated basis.
S&P said, "Following the termination of the merger, we no longer
view MRMC's creditworthiness on a consolidated basis. While our
view of MMLP's creditworthiness remains unchanged, we believe
MMLP's contract concentration with MRMC could be a limiting credit
factor. In our view, MRMC's operating performance affects MMLP's
credit profile. Due to their substantial business interactions, we
link our issuer credit rating on MMLP to MRMC's credit quality.
However, MMLP benefits from structural protections that allow its
credit quality to be stronger. MMLP is severable from MRMC, has
independent financial prospects, and holds itself out as a separate
entity. At this time, MRMC's creditworthiness does not constrain
our issuer credit rating on MMLP. However, if MRMC's credit quality
deteriorates, it could affect our rating on MMLP.
"We anticipate MMLP will generate S&P Global Ratings-adjusted
EBITDA of $125 million-$135 million and maintain leverage of
3.5x-4.0x and interest coverage in the 2.25x-2.50x range in 2025.
"The stable outlook reflects our view that MMLP will maintain
leverage of 3.5x-4.0x and interest coverage of 2.25x-2.50x in 2025.
It also reflects our expectation that the credit quality of its
parent, MRMC, will not deteriorate."
S&P could consider taking a negative rating action on MMLP if:
-- S&P anticipates it will generate lower-than-expected EBITDA
such that it will sustain leverage of more than 5.0x or interest
coverage of less than 2.0x; or
-- MRMC's credit quality deteriorates.
While unlikely in the near term, S&P could consider taking a
positive rating action on MMLP if:
-- S&P expects it will maintain leverage of below 4.0x on a
sustained basis;
-- Its interest coverage improves;
-- It increases the scale and scope of its operations; and
-- MRMC's credit quality improves.
MAVENCRUX I LLC: Seeks to Hire Brookshire Appraisal as Appraiser
----------------------------------------------------------------
Mavencrux I, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of Iowa to employ Brookshire Appraisal as its
appraiser.
Brookshire Appraisal will prepare an appraisal report for the
property and testify at any trial regarding the values of the
property appraised.
The additional fee for trial preparation and expert testimony is
$150 per hour with a two hour minimum.
Brookshire received $5,000 in pre-petition funds.
Brookshire is a disinterested person within the meaning of
Bankruptcy Code Sec. 101(14), according to court filings.
The firm can be reached through:
Jerry R. Brookshire
Brookshire Appraisal
2532 E 28th St.
Des Moines, IA 50317
About Mavencrux I
Mavencrux I, LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Iowa Case No. 25-00292) on March 3,
2025. In the petition signed by Louis Weltman, CRO and manager, the
Debtor disclosed under $1 million in both assets and liabilities.
The Debtor tapped Jeffrey D. Goetz, Esq., at Dickinson, Bradshaw,
Fowler & Hagen PC as counsel.
MIKE JACKSON: Jerrett McConnell Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Jerrett McConnell, Esq.,
at McConnell Law Group, P.A. as Subchapter V trustee for Mike
Jackson, Inc.
Mr. McConnell will be paid an hourly fee of $350 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. McConnell declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jerrett M. McConnell, Esq.
McConnell Law Group, P.A.
6100 Greenland Rd., Unit 603
Jacksonville, FL 32258
Phone: (904) 570-9180
Email: info@mcconnelllawgroup.com
About Mike Jackson
Mike Jackson, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-50043) on March 5,
2025, with $0 to $50,000 in assets and $500,001 to $1 million in
liabilities.
Jodi Daniel Dubose, Esq. at Sticher Riedel Blain & Postler PA
represents the Debtor as legal counsel.
MOORE HOLDINGS: Hires The Bankruptcy Group P.C. as Attorney
-----------------------------------------------------------
Moore Holdings, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of California to employ The Bankruptcy
Group, P.C. as its bankruptcy attorneys.
The firm will render these services:
a. provide legal advice to the Debtor in Possession with respect
to its powers and duties as a debtor in possession;
b. take all necessary action to protect and preserve the estate
of Debtor in Possession, including the protection of actions on
behalf of the Debtor in Possession, the defense of any actions
commenced against Debtor in Possession, the negotiation of disputes
in which Debtor in Possession is involved, and the preparation of
objections to the claims filed against the estate;
c. assist Debtor in Possession in obtaining approval of a
disclosure statement and confirmation of its Chapter 11 plan of
reorganization;
d. prepare the necessary applications, motions, answers, orders,
reports and other legal papers;
e. appear in Court and to protect the interests of Debtor in
Possession before the Court; and
f. perform all other legal services for Debtor in Possession
that may be necessary and proper in this proceeding.
Bankruptcy Group will be paid at these rates:
Stephan M. Brown, Esq. $450 per hour
Legal Administrators $300 per hour
Law Clerks and Paralegals $250 per hour
Administrative Staff $150 per hour
Bankruptcy Group will also be reimbursed for reasonable
out-of-pocket expenses incurred.
EStephan Brown, a partner at The Bankruptcy Group, P.C., assured
the Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Bankruptcy Group can be reached at:
Stephan M. Brown, Esq.
Muhammed Yakup Altun, Esq.
The Bankruptcy Group, P.C.
2408 Professional Drive
Roseville, CA 95661
Tel: (800) 920-5351
Fax: (916) 242-8588
Email: ECF@thebklawoffice.com
About Moore Holdings, LLC
Moore Holdings LLC a single asset real estate company headquartered
in Roseville, California.
Moore Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Cal. Case No. 25-20053) on January 8,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Ronald H. Sargis handles the case.
Stephan M. Brown, Esq. of The Bankruptcy Group, P.C. represents the
Debtor as counsel.
NAPLES ALF: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Naples ALF, Inc., according to court dockets.
About Naples ALF
Naples ALF, Inc. filed Chapter 11 petition (Bankr. M.D. Fla. Case
No. 25-00413) on February 19, 2025, listing between $1 million and
$10 million in both assets and liabilities.
Judge Caryl E. Delano oversees the case.
Lisa M. Castellano, Esq., at Venable, LLP is the Debtor's legal
counsel.
NEUEHEALTH INC: Narrows Net Loss of $99.72 Million in 2024
----------------------------------------------------------
Neuehealth, Inc. filed its annual report on Form 10-K with the
Securities and Exchange Commission, reporting a net loss of $99.72
million on total revenue of $936.66 million for the year ending
Dec. 31, 2024. This represents a significant improvement compared
to the previous year, when the Company recorded a net loss of $1.27
billion on total revenue of $1.16 billion.
The Company disclosed in the report that, "We have incurred net
losses on an annual basis since our inception. We must generate
and sustain higher revenue levels in future periods to become
profitable, and, even if we do, we may not be able to maintain or
increase our profitability. If we continue to invest to grow our
consumer base, diversify our service offerings, and invest in
additional assets related to the delivery of healthcare, we expect
our operating costs will increase and therefore expect to incur net
losses in the near to medium term. We may not achieve the benefits
anticipated from these investments, which could be more costly than
we currently anticipate, or the realization of these benefits could
be delayed. These investments may not result in increased revenue
or growth in our business and, accordingly, we may not be able to
generate sufficient revenue to offset these cost increases and
achieve and sustain profitability. Historical growth should also
not be considered indicative of our future performance. If we fail
to achieve and sustain growth and profitability, the market price
of our common stock could decline."
As of Dec. 31, 2024, the Company had $544.38 million in total
assets, $930.49 million in total liabilities, $48.58 million in
redeemable noncontrolling interests, $747.48 million in redeemable
series A preferred stock, $172.94 million in redeemable series B
preferred stock, and a total shareholders' deficit of $1.36
billion.
In its report dated March 21, 2025, Deloitte & Touche LLP, the
Company's auditor since 2020, issued a "going concern"
qualification, stating that the Company has a history of operating
losses, negative cash flows from operations and does not have
sufficient cash on hand or available liquidity to meet its
obligations. These conditions raise substantial doubt about its
ability to continue as a going concern.
The Company said that in response to these conditions, management
continues to implement plans to drive positive operating cash flow
and achieve the requirements in the existing debt agreements to
access additional liquidity. However, the Company indicated it may
not fully collect the remaining $10.0 million of indemnity-related
contingent consideration associated with the sale of the California
Medicare Advantage business, may not be able to access other
tranches of the loan and security agreement with Hercules Capital,
Inc., and may not be able to recapture through dividends additional
cash from its regulated insurance entities, as these matters are
all subject to conditions that are not fully within the Company's
control. In the event the Company is unable to access this
additional liquidity or take other management actions, among other
potential consequences, the Company forecasts that it will be
unable to satisfy its obligations. As a result, the Company has
concluded that management's plans do not alleviate substantial
doubt about the Company's ability to continue as a going concern.
As of Dec. 31, 2024, the Company had $185.4 million in cash and
cash equivalents and $17.4 million in short-term investments across
its continuing and discontinued operations. As of Dec. 31, 2024,
the Company had no long-term investments across its continuing and
discontinued operations.
The full text of the Form 10-K is available for free at:
https://www.sec.gov/Archives/edgar/data/1671284/000167128425000004/neue-20241231.htm
About NeueHealth Inc.
Headquartered in Doral, FL, NeueHealth --
http://www.neuehealth.com/-- is a value-driven healthcare company
rooted in the belief that every health consumer deserves
high-quality, coordinated care. The Company operates through two
primary segments -- NeueCare and NeueSolutions -- each focused on
optimizing the healthcare experience for consumers, providers, and
payors with a consumer-centric, value-based care model. NeueCare
provides accessible, affordable healthcare across diverse
populations, including those in the ACA Marketplace, Medicare, and
Medicaid, through both owned and affiliated clinics. NeueSolutions
empowers providers and medical groups to succeed in
performance-based care models. This segment also participates in
the Centers for Medicare & Medicaid Innovation's (CMMI) ACO REACH
program, ensuring high-quality healthcare access for Medicare
beneficiaries.
NEW LEDA LANES: Gets Interim OK to Use Cash Collateral Until May 5
------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Hampshire granted
New Leda Lanes, Inc.'s motion for interim use of cash collateral
from March 3 to May 5.
The interim order signed by Judge Kimberly Bacher authorized New
Leda Lanes to use cash collateral to pay ordinary business expenses
per the approved budget.
Creditors with valid liens on property of the company will receive
replacement liens on property acquired by the company after its
Chapter 11 filing, maintaining the same priority as their
pre-bankruptcy liens.
In addition, these creditors will receive "adequate protection"
payments ranging from 5% to 10% of monthly secured debt payments.
About New Leda Lanes Inc.
New Leda Lanes Inc., doing business as Leda Lanes, Kegler's Den,
and Leda's Light House, is a family-owned candlepin bowling center
located at 340 Amherst Street, Nashua, N.H. It is also known for
hosting local tournaments and supporting the Special Olympics New
Hampshire's State Bowling Tournament.
New Leda Lanes sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.H. Case No. 25-10129) on March 3, 2025.
In its petition, the Debtor reported between $100,000 and $500,000
in assets and between $1 million and $10 million in liabilities.
The Debtor is represented by:
William J. Amann, Esq.
Amann Burnett, PLLC
757 Chestnut Street
Manchester, NH 03104
Tel: 603-696-5401
Email: wamann@amburlaw.com
ON POINT DIRECTIONAL: Hires Watlington Law Firm as Special Counsel
------------------------------------------------------------------
On Point Directional Drilling and Trenching, LLC seeks approval
from the U.S. Bankruptcy Court for the Eastern District of Arkansas
to employ Watlington Law Firm, Inc. as special counsel.
The Debtor desires assistance from special counsel to handle a
civil case regarding the collection of an account receivable in On
Point Directional Drilling and Trenching, LLC vs. Blue Sky
Technologies, LLC, Circuit Court of Craighead County, Case No.
16JCV-24-491.
The firm will receive 20 percent of the gross amount recovered as
attorney's fees.
Garland Watlington, a member of Watlington Law Firm, Inc., assured
the court that his firm does not represent or hold any interest
adverse to the estate and is a "disinterested person" as the phrase
is defined in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Garland Watlington, Esq.
Watlington Law Firm, Inc.
603 Southwest Drive
Jonesboro, AR 72410
Phone: (870) 972-6110
Email: watlingtonlawfirm@gmail.com
About On Point Directional Drilling and Trenching
On Point Directional Drilling and Trenching LLC specializes in
providing drilling and trenching services.
On Point Directional Drilling and Trenching LLC sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No.
24-12506) on July 31, 2024. In the petition filed by Matthew
Mommsen, managing member, the Debtor reports estimated assets and
liabilities between $1 million and $10 million.
Judge Phyllis M. Jones oversees the case.
The Debtor tapped Kevin P. Keech, Esq., at Keech Law Firm, PA as
counsel and Matt Knight, CPA, at Osborn & Osborn, CPA's, PLLC as
accountant.
ONE FAT FROG: Trustee Taps Noble & Noble P.A. as Accountant
-----------------------------------------------------------
L. Todd Budgen, the Trustee for One Fat Frog, Incorporated, seeks
approval from the U.S. Bankruptcy Court for the Middle District of
Florida to employ Noble & Noble, P.A. as his certified public
accountant.
The firm will render these services:
a. prepare multiple years of tax returns;
b. prepare Debtor's Monthly Operating Reports;
c. work with the Trustee-in-Possession to collect any Employee
Retention Refund Claims (ERC) owed the Debtor by the Internal
Revenue Service.
Noble's fees for preparing Estate Returns and Monthly Operating
Reports is based on an hourly rate of $195 per hour.
For the ERC services, Noble will charge an hourly fee of $195.
Noble & Noble, P.A. is a "disinterested person" as defined within
Sec. 101(14) of the Bankruptcy Code, according to court filings.
The firm can be reached through:
Emerson C. Noble, CPA
Noble & Noble, P.A.
P.O. Box 622798
Oviedo, FL 32762 -2798
Phone: (407) 628-9300
E-mail: trusteenoble@outlook.com
About One Fat Frog
One Fat Frog, Incorporated, is a food truck and trailer
manufacturer based in Orlando, Fla.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02620) on May 2,
2024, with $1 million to $10 million in both assets and
liabilities. Connie Baugher, president, signed the petition.
Judge Lori V. Vaughan presides over the case.
Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC, is the Debtor's
legal counsel.
OPTINOSE INC: Reports Decreased Net Loss of $21.54 Million for 2024
-------------------------------------------------------------------
OptiNose, Inc. filed its annual report on Form 10-K with the
Securities and Exchange Commission, reporting a net loss of $21.54
million on total revenues of $78.23 million for the year ending
Dec. 31, 2024. This marks an improvement compared to the prior
year, when the Company posted a net loss of $35.48 million on total
revenues of $70.99 million.
Since its inception, OptiNose has faced significant net losses and
expects ongoing losses in the foreseeable future. As of Dec. 31,
2024, the Company's accumulated deficit stood at $741.9 million.
The Company has primarily funded its operations through stock
sales, debt issuance, licensing revenues under its agreements, and
XHANCE sales. OptiNose has warned that it may never achieve
profitability, or if it does, it may struggle to sustain
profitability on a recurring basis.
As of Dec. 31, 2024, OptiNose had total assets of $128.79 million,
total liabilities of $169.15 million, and a total stockholders'
deficit of $40.36 million. Cash and cash equivalents totaled $84.5
million.
In its report dated March 26, 2025, Ernst & Young LLP, OptiNose's
auditor since 2016, issued a "going concern" qualification, citing
that the Company has suffered recurring losses, has a working
capital deficiency, and expects to breach certain debt covenants,
raising substantial doubt on the Company's ability to continue as a
going concern.
The Company emphasized that its ability to continue as a going
concern depends on maintaining compliance with key financial
covenants. These include meeting sales and royalty thresholds,
maintaining at least $30 million in cash and cash equivalents
(reduced to $20 million after the first quarterly debt payment in
September 2025), and ensuring its financial statements are not
qualified as "going concern" starting with its financial statements
for the fiscal year ending Dec. 31, 2025. The Company's viability
also depends on generating sufficient cash flow to meet obligations
and fund operations, and securing additional capital from various
sources.
"Even if we achieve profitability, we may not be able to sustain or
increase profitability on a quarterly or annual basis," OptiNose
warned in the report. "Our failure to become and remain profitable
would depress the value of our company and could impair our ability
to raise capital, expand our business, maintain our development
efforts, obtain drug approvals, diversify our offerings, or
continue our operations. A decline in the value of our company
could also cause you to lose all or part of your investment."
The complete text of the Form 10-K is available for free at:
https://www.sec.gov/Archives/edgar/data/1494650/000149465025000064/optn-20241231.htm
About OptiNose, Inc.
OptiNose, Inc. -- www.optinose.com -- is a specialty pharmaceutical
company based in Yardley, Pennsylvania, focused on developing and
commercializing products for patients treated by ear, nose and
throat (ENT) and allergy specialists. The Company's first product,
XHANCE (fluticasone propionate) nasal spray, utilizes its
proprietary Exhalation Delivery System (EDS) to treat chronic
rhinosinusitis, including cases with and without nasal polyps.
XHANCE delivers medication to deeper, hard-to-reach areas of the
nasal passages, offering a potential improvement over conventional
intranasal steroids. Optinose also aims for XHANCE to become a
standard maintenance therapy following sinus surgery to enhance
patient outcomes.
OUTKAST ELECTRICAL: Court Extends Cash Collateral Access to May 12
------------------------------------------------------------------
David Madoff, the Subchapter V operating trustee, received another
extension from the U.S. Bankruptcy Court for the District of
Massachusetts to use cash collateral.
The court issued a proceeding memorandum and order authorizing the
trustee to use the funds advanced by Dimeo Construction Company
until May 12 to the extent such funds constitute cash collateral.
BDC, Mill Cities Community Investments and the U.S. Small Business
Administration will be granted replacement liens on post-petition
assets as protection for the use of the cash collateral. These
liens will have the same priority as their pre-bankruptcy liens.
The next hearing is scheduled for May 7.
About Outkast Electrical Contractors
Outkast Electrical Contractors, Inc. provides full-service
commercial electrical construction and renovation services
throughout the greater Boston area. The company is based in
Dorchester Center, Mass.
Outkast filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Mass. Case No. 24-10272) on February 13,
2024, with $500,000 to $1 million in assets and $1 million to $10
million in liabilities. David Madoff, Esq., a partner at Madoff &
Khoury, LLP, serves as Subchapter V trustee.
Judge Janet E. Bostwick oversees the case.
John Sommerstein, Esq., at John F. Sommerstein represents the
Debtor as legal counsel.
PAVMED INC: Posts $31.97M Income for 2024, Has Going Concern Doubts
-------------------------------------------------------------------
PavMed Inc. filed its annual report on Form 10-K with the
Securities and Exchange Commission, reporting a net income
attributable to common stockholders of $31.97 million on revenue of
$3 million for the year ending Dec. 31, 2024. This contrasts with
a net loss attributable to common stockholders of $66.27 million on
revenue of $2.45 million for the year ending Dec. 31, 2023.
The Company experienced net income before noncontrolling interests
of approximately $28.4 million and used approximately $33.6 million
in cash from operations for the year ended Dec. 31, 2024.
Financing activities provided $31.3 million in cash during the same
period.
As of Dec. 31, 2024, the Company had $30.66 million in total
assets, $37.69 million in total liabilities, and a total
stockholders' deficit of $7.03 million. The Company ended the year
with $1.2 million in cash as of Dec. 31, 2024.
In its report dated March 24, 2025, Marcum LLP, the Company's
auditor since 2019, issued a "going concern" qualification, citing
that the Company has a significant working capital deficiency, has
incurred significant operating 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 expects to continue experiencing recurring losses and
negative cash flows from operations and will fund its operations
through debt and/or equity financing transactions. This includes
addressing current obligations on the Company's existing
convertible debt, which, according to management's plans, may
involve conversions to equity and refinancing its existing debt
obligations to extend maturity dates.
The Company said its ability to continue operations 12 months
beyond the issuance of these financial statements will depend on
its ability to control operating costs within the limits of funds
collected from management service contracts with non-consolidated
subsidiaries, substantially increase revenues from the Veris Cancer
Care platform, and raise additional capital through various
potential sources, including equity or debt financing, refinancing,
or restructuring existing debt obligations.
The Company has incurred net losses since its inception in June
2014 and has primarily financed its operations through the issuance
of common stock, preferred stock, warrants, and debt via private
placements and public offerings of its securities, either by the
Company or its subsidiaries. According to the Company, its ability
to generate sufficient revenue from products in development and
achieve profitability depends on factors beyond its control. While
the Company has taken steps to reduce operating expenses, it
expects to continue incurring expenses that exceed revenues as it
maintains its commercial infrastructure, develops and
commercializes products, and faces additional operational and
reporting costs as a public company. As a result, the Company
anticipates ongoing operating losses for the foreseeable future.
The Company's current financing strategy is to obtain capital
directly into Lucid, Veris, and other subsidiaries to fund product
development and related activities. However, the Company retains
the flexibility to raise capital at the parent company (PavMed)
level. Nonetheless, the Company gives no assurance that it will be
able to secure the necessary financial resources for the short-term
or long-term commercialization and development of its products and
services.
The complete text of the Form 10-K is available for free at:
https://www.sec.gov/Archives/edgar/data/1624326/000164117225000364/form10-k.htm
About PAVmed
Headquartered in New York, NY, PAVmed Inc. --
http://www.pavmed.com/-- is structured as a multi-product life
sciences company dedicated to advancing a pipeline of innovative
healthcare technologies. Led by a team of highly skilled
professionals with a proven track record of bringing groundbreaking
products to market, PAVmed focuses on innovating, developing,
acquiring, and commercializing novel products that address unmet
medical needs and target large, addressable market opportunities.
Leveraging its corporate structure -- a parent company that will
establish distinct subsidiaries for each financed asset -- the
Company has the flexibility to raise capital at the PAVmed level to
fund product development, or to structure financing directly into
each subsidiary in a manner tailored to the applicable product.
PICCARD PETS: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Piccard Pets Supplies Corp., according to court
dockets.
About Piccard Pets Supplies
Piccard Pets Supplies Corp., a company in Jacksonville, Fla.,
offers pet supplies and medications.
Piccard Pets Supplies sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02434) on Aug. 15,
2024, with total assets of $927,465 and total liabilities of
$5,323,839. Marlon Martinez, chief executive officer, signed the
petition.
Judge Henry W. Van Eck oversees the case.
The Debtor is represented by Thomas Adam, Esq., at Adam Law Group,
PA.
PINSEEKERS DEFOREST: Gets OK to Obtain Loan, Use Cash Collateral
----------------------------------------------------------------
PinSeekers DeForest Operations LLC got the green light from the
U.S. Bankruptcy Court for the Western District of Wisconsin to use
cash collateral and obtain post-petition financing.
The DIP facility will be a term loan facility in a maximum amount
of $600,000 plus the advances made by Golf DeForest RE, LLC on Feb.
10, in the amount of $200,000. It is due and payable on Aug. 31.
The Debtor will use the DIP facility to pay administrative
expenses, maintain and continue its business operations, and
support its efforts to preserve and augment the size of its
bankruptcy estate as outline in the budget.
Under the DIP facility, to the extent that the Debtor draws against
the DIP facility, the DIP Lender will have a claim against the
Debtor secured by:
(1) a first-position security interest on all of the Debtor's
assets (if any) that are not subject to existing liens or security
interests, or subject to invalid, unperfected, or avoidable liens;
and
(2) a junior general business security interest in all of the
Debtor's assets.
The Debtor needs to use cash collateral to pay expenses related to
payroll, utilities, professional services, insurance, vendors,
maintenance, and repairs consistent with the budget.
The parties that assert an interest in cash collateral are One
Community Bank and Golf DeForest RE.
As protection for the use of its cash collateral, One Community
Bank will receive a replacement lien on all of the Debtor's assets
and all proceeds, products, rents and profits thereof.
One Community Bank will also receive a monthly payment of $12,000
as additional protection.
About PinSeekers DeForest Operations
PinSeekers DeForest Operations, LLC operates a hybrid golf
entertainment facility located in DeForest, Wis., just outside of
Madison.
The facility's year-round offerings include Toptracer golf suites,
which are equipped with all-weather luxury suites suitable for
golfers of all skill levels. It also features mini bowling, with a
scaled-down version of traditional bowling called duckpin bowling,
a custom-built putting course that caters to all levels of skill
and age, and high-definition multi-sports simulators. Moreover, the
facility provides a spacious event space for corporate gatherings,
networking events, meetings, or parties. The venue also includes a
restaurant and bar, offering a diverse menu for casual dining.
PinSeekers DeForest Operations filed Chapter 11 petition (Bankr.
W.D. Wis. Case No. 25-10326) on February 18, 2025. In its petition,
the Debtor reported between $1 million and $10 million in both
assets and liabilities.
Judge Beth E. Hanan oversees the case.
The Debtor is represented by Rebecca R. DeMarb, Esq., at Swanson
Sweet, LLP.
Golf DeForest RE, LLC, as lender, is represented by:
Erin A. West, Esq.
Godfrey & Kahn, S.C.
One East Main Street, Suite
500 Madison, WI 53703
Telephone: 608-284-2277
Facsimile: 608-257-0609
Email: ewest@gklaw.com
-- and --
Crystal N. Abbey, Esq.
200 S. Washington St., Suite 100
Green Bay, WI 54301
Telephone: 920-436-7692
Facsimile: 920-436-7988
Email: cabbey@gklaw.com
PIVOTAL MED: Seeks to Hire Thames Markey P.A. as Special Counsel
----------------------------------------------------------------
Pivotal Med Supply, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Thames Markey,
P.A. as special counsel.
The firm's services include:
a. representing the Debtor as local counsel before the Florida
Bankruptcy Court;
b. representing the Debtor with respect to the claims asserted
by Next Science, LLC in the Circuit Court as the same may be
needed;
c. working with and coordinating efforts among other
professionals to attempt to preclude any duplication of effort
among those professionals and to guide its efforts in the overall
framework of Debtor’s reorganization or liquidation; and
d. working with professionals retained by other parties in
interest in this bankruptcy case to attempt to structure a
consensual plan of reorganization, liquidation, or other resolution
for Debtor.
The hourly rates of the firm's counsel and staff are as follows:
Richard Thames, Partner $575/hr.
Brad Markey, Partner $475/hr.
Prior to the petition date, the firm received a retainer of $7,500
for services to be rendered and costs advanced on behalf of the
Debtor.
Bradley Markey, Esq., a partner at Thames Markey, disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Bradley R. Markey, Esq.
Ryan T. Hyde, Esq.
Thames | Markey
50 N. Laura Street, Suite 1600
Jacksonville, FL 32202
Telephone: (904) 358-4000
Facsimile: (904) 358-4001
Email: brm@thamesmarkey.law
rlh@thamesmarkey.law
About Pivotal Med Supply, LLC
Pivotal Med Supply LLC headquartered in Southlake, Texas, operates
as a supplier of advanced surgical dressings and medical supplies,
including alginate, collagen, foam, hydrocolloid, and hydrogel
dressings, bandages, gauze, and tape products.
Pivotal Med Supply LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40248)
on January 23, 2025. In its petition, the Debtor reports estimated
assets between $500,000 and $1 million and estimated liabilities
between $1 million and $10 million.
The Debtor is represented by Richard G. Grant, Esq., at Culhane
Meadows, PLLC, in Dallas, Texas.
POPELINO'S TRANSPORTATION: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------------------
Popelino's Transportation, Inc. received interim approval from the
U.S. Bankruptcy Court for the Central District of California,
Riverside Division, to use cash collateral.
The interim order authorized the Debtor to use cash collateral to
use cash collateral from March 18 to April 22 to pay the expenses
set forth in its budget.
Creditors with security interests in cash collateral were granted
replacement liens on the Debtor's post-petition accounts and
receivables, with the same priority and extent as their
pre-bankruptcy liens.
A final hearing is set for April 22.
The Debtor's annual gross revenue for recent years shows a steady
increase in business activity, though it is facing financial
difficulties.
A judgment of $908,098 was entered in favor of Valley Fresh on
September 30, 2020. This was a civil case from July 2020, and an
abstract of judgment was recorded, securing the debt against any
future real property owned by PTI. A settlement agreement was made
to allow the Debtor to pay this debt in 48 monthly installments of
$5,000, leaving an outstanding balance of around $210,000.
A more recent judgment of $3,807,508 was entered against the Debtor
on December 12, 2024, in favor of D&R Woods Enterprise in a case
filed in March 2021. This judgment is significantly larger and
poses a substantial risk of creditor actions that could hinder the
Debtor's operations if not addressed in bankruptcy.
These judgments and the resulting legal pressures led the Debtor to
seek bankruptcy protection in Chapter 11 in order to reorganize and
handle these debts.
PTI owes significant amounts to secured creditors, all of whom hold
interests in the company's assets:
1. JPMorgan Chase Bank, N.A.:
a. Loan balance: Approximately $740,000.
b. Secured by a Deed of Trust recorded in 2014 and
cross-collateralized, meaning it is secured by both PTI's real
property and business assets. PTI's real estate, located at 1880
Brown Avenue, Riverside, CA, is valued at $1 million.
2. U.S. Small Business Administration (SBA):
a. Loan balance: Approximately $1,256,900.
b. The SBA holds a UCC-1 Financing Statement recorded in
2020, securing all of PTI's assets.
3. ASSN Company (OnDeck/Celtic Bank):
a. Loan balance: Approximately $140,000.
b. Secured by a UCC-1 Financing Statement recorded in 2024,
covering all PTI's assets.
About Popelino's Transportation Inc.
Popelino's Transportation, Inc. is a Riverside, California-based
company that has been offering green waste hauling and
transportation services since 2005. Additionally, the Company
recycles green waste at its facility to generate compost, mulch,
and woodchips for landscaping.
Popelino's Transportation filed petition (Bankr. C.D. Calif. Case
No. 25-11628) on March 18, 2025, listing $3,318,612 in total assets
and $8,329,194 in total liabilities. Jose Barragan, president of
Popelino's Transportation, signed the petition.
Judge Mark D. Houle oversees the case.
Todd Turoci, Esq., at The Turoci Firm represents the Debtor as
legal counsel.
PREMIER TILLAGE: Gets Interim OK to Use Cash Collateral
-------------------------------------------------------
Premier Tillage, Inc. received interim approval from the U.S.
Bankruptcy Court for the District of Kansas, Kansas City Division,
to use cash collateral.
The interim order authorized the Debtor to use cash collateral to
pay operating expenses in accordance with its budget and grant
protection to Equity Bank, a secured creditor.
Equity Bank will be granted a replacement lien on and security
interest in the property acquired by the Debtor after its
bankruptcy filing and will receive payments in accordance with the
budget.
A final hearing is scheduled for April 17.
The Debtor produces Blade Plows for farmland weed removal and
tillage equipment and faces financial difficulties due to declining
revenue caused by farming uncertainties and drought. The company
has a secured debt to Equity Bank totaling around $5.9 million,
with assets valued at approximately $5 million pledged as
collateral.
The Debtor has various notes with Equity Bank, secured by real
estate, equipment, and other business assets, including life
insurance policies of the company's principals.
About Premier Tillage Inc.
Premier Tillage, Inc. is a family-owned company based in Kansas,
specializing in products and services for both no-till and
conventional tillage farming. The Company's flagship product, the
Minimizer blade plow, enhances efficiency by reducing weeds and
boosting profits. In addition, the Company offers replacement parts
and other farming equipment, such as stubble treaders and sweep
plows.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 25-20314) on March 18,
2025. In the petition signed by Daniel W. Chupp, president, the
Debtor disclosed $5,285,139 in total assets and $9,284,642 in total
liabilities.
Neil Sader, Esq., at Sader Law Firm, LLC represents the Debtor as
bankruptcy counsel.
Equity Bank is represented by:
Nicholas J. Zluticky, Esq.
Stinson LLP
1201 Walnut, Suite 2900
Kansas City, MO 64106
Telephone: (816) 842-8600
Facsimile: (816) 691-3495
nicholas.zluticky@stinson.com
PREST PROPERTIES: Seeks Chapter 11 Bankruptcy in New York
---------------------------------------------------------
On March 24, 2025, Prest Properties 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 $6,465,000 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Prest Properties LLC
Prest Properties LLC owns an 88-bed skilled nursing facility
located at 308 W Emma Street, Union Gap, WA 98903, with an
estimated value of $8 million.
Prest Properties LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-71125) on March 24,
2025. In its petition, the Debtor reports total assets of
$8,000,000 and total liabilities of $6,465,000.
Honorable Bankruptcy Judge Louis A. Scarcella handles the case.
The Debtor is represented by Avrum J. Rosen, Esq. at LAW OFFICES OF
AVRUN J. ROSEN, PLLC.
PROPERTY PROBLEM: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------
Property Problem Solvers, LLC received interim approval from the
U.S. Bankruptcy Court for the Northern District of Georgia, Newnan
Division, to use cash collateral.
The Debtor needs to use cash collateral, which consists of revenue
from its business, for general operational and administrative
expenses.
The U.S. Small Business Administration may assert a lien on the
Debtor's cash collateral.
As protection for the use of its cash collateral, SBA was granted a
replacement lien on all property acquired by Debtor after the
petition date that is similar to its pre-bankruptcy collateral.
The interim order remains valid until a further ruling is entered
by the bankruptcy court.
A final hearing is set for April 29.
About Property Problem Solvers LLC
Property Problem Solvers, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-10390) on
March 18, 2025. In the petition signed by Jason Statham, authorized
representative, the Debtor disclosed up to $1 million in both
assets and liabilities.
Judge Paul Baisier oversees the case.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC,
represents the Debtor as legal counsel.
PURE AVIATION: Sec. 341(a) Meeting of Creditors on April 24
-----------------------------------------------------------
On March 24, 2025, Pure Aviation LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Western District of Texas.
According to court filing, the Debtor reports between $10 million
and $50 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on April 24,
2025 at 01:00 PM via Via Phone: (866)909-2905; Code: 5519921#.
About Pure Aviation LLC
Pure Aviation LLC is a privately held company primarily engaged in
real estate leasing.
Pure Aviation LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-30335) on March 24,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
The Debtor is represented by James Jopling, Esq. at JIM K. JOPLING,
ATTORNEY AT LAW.
QS PROFESSIONALS: Leon Jones Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 21 appointed Leon Jones, Esq., at Jones
& Walden, LLC, as Subchapter V trustee for QS Professionals Corp.
Mr. Jones will be paid an hourly fee of $500 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Jones declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Leon S. Jones, Esq.
Jones & Walden, LLC
699 Piedmont Ave. NE
Atlanta, GA 30308
Phone: (404) 564-9300
Email: ljones@joneswalden.com
About QS Professionals Corp.
QS Professionals Corp. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-52381) on March
4, 2025.
RADIANT ONE: Gets Interim OK to Use Cash Collateral Until April 3
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina granted Radiant One, LLC interim authorization to use cash
collateral to maintain operations while protecting its secured
creditor, Live Oak Banking Company.
The interim order authorized the company to use cash collateral to
pay the expenses set forth in its budget, with a 10% variance
allowed.
Radiant One projects total monthly expenses of $16,397.73 for March
and April.
As protection, Live Oak was granted replacement liens on
post-petition cash and personal property to the same extent as its
pre-bankruptcy lien.
In addition, Live Oak will receive a monthly payment of $673.73,
beginning in April.
Live Oak holds a secured interest in Radiant One's cash and assets
based on a security agreement and UCC-1 filing. It has consented to
the use of cash collateral.
The next hearing is scheduled for April 3.
About Radiant One LLC
Radiant One, LLC operates as a beauty salon in Fuquay-Varina, N.C.
Radiant One sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-00787) on March 4,
2025, listing up to $500,000 in assets and up to $1 million in
liabilities. Manoj Michael, manager of Radiant One, signed the
petition.
Judge Pamela W. McAffee oversees the case.
The Debtor is represented by:
Danny Bradford, Esq.
Paul D. Bradford, PLLC
Tel: 919-758-8879
Email: dbradford@bradford-law.com
RADIX HAWK: Seeks Chapter 11 Bankruptcy in Florida
--------------------------------------------------
On March 24, 2025, Radix Hawk Holdings LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Middle District of
Florida. According to court filing, the Debtor reports between
$10 million and $50 million in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Radix Hawk Holdings LLC
Radix Hawk Holdings LLC is a real estate holding company primarily
owning hotel and motel complexes located at 5859 American Way,
Orlando, FL 32819.
Radix Hawk Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01631) on March 24,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $10 million and $50
million.
Honorable Bankruptcy Judge Lori V. Vaughan handles the case.
The Debtor is represented by Craig I. Kelley, Esq. of KELLEY KAPLAN
& ELLER, PLLC.
RDB MANAGEMENT: Lender Seeks to Prohibit Cash Collateral Access
---------------------------------------------------------------
Live Oak Banking Company asked the U.S. Bankruptcy Court for the
District of Colorado to prohibit RDB Management, LLC and A Place of
all My Own Healthcare, LLC from using cash collateral.
Live Oak is the holder of two promissory notes executed by RDB and
is owed a balance of approximately $1.376 million by RDB on the
first promissory note and $638,092 by RDB on the second promissory
note.
The Notes are secured by a lien on all personal property assets
owned by RDB, including but not limited to its cash asset.
Live Oak has preliminary agreed to consent to the use of the cash
collateral, on the condition that, among other things, the Debtors
execute and file a stipulation with the Court on terms that the
parties both agree and that provides the necessary adequate
protection to Live Oak to protect its interest in the Cash
Collateral, including providing monthly adequate protection
payments to Live Oak of $10,000 on or before the 15th of each month
commencing on January 15, and then in a later iteration on February
15. As of March 18, the Debtors have failed to execute the proposed
stipulation and Live Oak has withdrawn its authorization for such
filing.
The Debtors have also failed to provide Live Oak adequate
protection as contemplated by the proposed stipulation or
otherwise. The proposed stipulation requires monthly adequate
protection payments of $10,000, with the first due originally to be
paid by January 15, later extended to February 15. The further
payment was on or before March 15. No payments have been made or
other protection provided.
A copy of the motion is available at https://urlcurt.com/u?l=Z3Aas7
from PacerMonitor.com.
About RDB Management
RDB Management, LLC provides personalized in-home care and is
especially skilled in consulting with families about Long-Term Care
insurance (LTCi) policies and identifying other funding sources
that cover the costs of in-home care.
RDB Management filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. Colo. Case No. 24-16998) on Nov. 22,
2024, with $201,342 in assets and $2,481,528 in liabilities.
Richard Babcock, manager, signed the petition.
Judge Michael E. Romero oversees the case.
Keri L. Riley, Esq., at Kutner Brinen Dickey Riley, PC serves as
the Debtor's counsel.
Live Oak Banking Company, as lender, is represented by:
Christopher J. Harayda, Esq.
Stinson LLP
50 South Sixth Street, Suite 2600
Minneapolis, MN 55402
Phone: 612.335.1928
Email: cj.harayda@stinson.com
REED'S INC: Director Quits Over Governance Concerns, Investor Plans
-------------------------------------------------------------------
Reed's, Inc., filed a Form 8-K with the Securities and Exchange
Commission, announcing that Lewis Jaffe has submitted his
resignation from the Company's Board of Directors, effective March
31, 2025. Mr. Jaffe currently serves as the Chair of the
Governance Committee and is a member of the Compensation and Audit
Committees.
In his resignation letter, Mr. Jaffe told the Board that his
decision was due to "recent changes in ownership, leadership, and
decision-making processes." He added that his choice was based on
a fundamental disagreement over corporate governance, the board's
role in guiding the company's strategic direction, and the majority
investor's plan to gradually replace the independent directors.
About Reed's Inc.
Headquartered in Norwalk, CT, Reed's, Inc. -- www.reedsinc.com
--owns a leading portfolio of handcrafted, natural beverages that
is sold in over 45,000 outlets nationwide. These outlets include
the natural and specialty food channel, grocery stores, mass
merchants, drug stores, convenience stores, club stores, liquor
stores, and on-premises locations including bars and restaurants.
Reed's two core brands are Reed's, which includes Reed's Craft
Ginger Beer, Reed's Real Ginger Ale, Reed's Classic Mules, and
Reed's Hard Ginger Ale, and Virgil's Handcrafted sodas. Reed's
Craft Ginger Beers are unique due to the proprietary process of
using fresh ginger root combined with a Jamaican inspired recipe of
natural spices, honey and fruit juices. Reed's uses this same
handcrafted approach in its Reed's Real Ginger Ale and Virgil's
line of great tasting, bold flavored craft sodas, including its
award-winning Virgil’s Root Beer.
For the year ended Dec. 31, 2023, the Company recorded a net loss
of $15.52 million and used cash in operations of $4.27 million.
For the nine months ended Sept. 30, 2024, the Company recorded a
net loss of $9.04 million, and utilized $2.25 million of cash in
operations and at Sept. 30, 2024, had a working capital deficiency
of $22.92 million and a stockholders' deficit of $21.95 million.
As of Sept. 30, 2024, the Company borrowed $5.47 milion on its line
of credit and owed $22.21 million on its Notes. The Company noted
that these factors raise substantial doubt about the Company's
ability to continue as a going concern within one year of the date
that the financial statements are issued.
The Company reported in its Quarterly Report on Form 10-Q for the
period ended Sept. 30, 2024, that despite the U.S. economy
maintaining growth throughout 2023 and into the third quarter of
2024, factors such as elevated inflation, actions by the Federal
Reserve to combat inflation, and increasing energy prices
contribute to uncertainty regarding the future economic landscape,
which will continue to evolve and may impact the business in the
coming periods. The Company has faced supply chain challenges,
including longer lead times, as well as inflation in raw materials,
logistics, and labor costs due to constraints in availability and
high demand. While the Company consistently monitors supply chain
partners and utilizes alternative suppliers when necessary and
available, ongoing supply chain limitations could disrupt the
acquisition of raw materials needed for manufacturing its products,
potentially affecting operations negatively.
SAS GROUP: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Sash Group, Incorporated
12899 Flintwood Way
San Diego, CA 92130
Business Description: Sash designs and manufactures multi-pocket
bags aimed at enhancing everyday convenience
and organization. The Company's signature
product features 10 ergonomic pockets,
including secure compartments for cash and
passports, crafted from genuine leather in a
fair trade factory. Sash emphasizes
durability, versatility, and customer
satisfaction, offering a 30-day warranty on
all its bags.
Chapter 11 Petition Date: March 25, 2025
Court: United States Bankruptcy Court
Southern District of California
Case No.: 25-01150
Debtor's Counsel: Matthew D. Resnik, Esq.
RHM LAW LLP
17609 Ventura Blvd.
Ste 314
Encino, CA 91316
Tel: (818) 285-0100
Fax: (818) 855-7013
Email: matt@rhmfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Nichole MacDonald as chief executive
officer.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/DCBD37Q/Sash_Group_Incorporated__casbke-25-01150__0001.0.pdf?mcid=tGE4TAMA
SASAS HOSPITALITY: Hearing to Use Cash Collateral Set for April 2
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, is set to hold a hearing on April 2 to consider
another extension of SASAS Hospitality, LLC's authority to use cash
collateral.
The court's previous order authorized the company to use the cash
collateral of Albany Bank & Trust Company, N.A., a senior secured
creditor, for the period from March 18 to 27.
The order issued on March 19 allowed SASAS Hospitality to use up to
$36,473.95 in cash collateral for payroll and payroll expenses due
on March 14, and granted Albany Bank & Trust Company replacement
liens on collateral in which the secured creditor held a valid lien
as of the petition date.
Albany Bank & Trust Company is represented by:
David A. Golin, Esq.
Saul Ewing, LLP
161 North Clark Street, Suite 4200
Chicago, IL 60601
Phone: (312) 876-7100
david.golin@saul.com
About SASAS Hospitality LLC
SASAS Hospitality LLC is a hospitality company that owns a property
at 5105 S Howell Ave, Milwaukee, Wis.
SASAS Hospitality filed Chapter 11 petition (Bankr. N.D. Ga. Case
No. 25-03643) on March 10, 2025. In its petition, the Debtor
reported between $1 million and $10 million in both assets and
liabilities.
Judge Jacqueline P. Cox handles the case.
The Debtor is represented by:
Paul M. Bach, Esq.
Bach Law Offices
P.O. Box 1285
Northbrook, IL 60065
paul@bachoffices.com
SCANROCK OIL: Seeks to Hire Jobe Law PLLC as Legal Counsel
----------------------------------------------------------
Scanrock Oil & Gas Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire Jobe Law PLLC as
attorneys for O'Ryan Ranches, Ltd.
The firm will provide these services:
a. serve as attorneys of record for the Ranches and to provide
representation and legal advice with respect to Ranches' powers and
duties as debtor in possession;
b. assist Ranches in carrying out its duties under the
Bankruptcy Code, including advising Ranches of such duties, its
obligations, and legal rights;
c. take all necessary action to protect and preserve the
Ranches' estate, including the prosecution of actions on the
Ranches' behalf, the defense of actions commenced against Ranches,
the negotiation of disputes in which Ranches is involved, and the
preparation of objection, as necessary, to relief sough and claims
filed against the Ranches' estate;
d. consult with the United States Trustee, any statutory
committee that may be formed, and all other creditors and parties
in interest concerning administration of these Chapter 11 Cases;
e. assist in potential sales of assets;
f. prepare all motions, applications, answers, orders,
reports, and other legal papers and documents to further Ranches'
interests and objections, and to assist Ranches in preparation of
schedules, statements, and reports, and to represent Ranches and
its estate at all related hearings and at all related meetings of
creditors, United States Trustee interviews, and the like;
g. assist Ranches in connection with preparing and refining
its chapter 11 plan and disclosure statements, and/or all related
agreements and documents necessary to facilitate an exit from its
Chapter 11, take appropriate action on behalf of Ranches to obtain
confirmation of such plans, and take such further actions as may be
required in connection with the implementation of such plans;
h. assist Ranches in analyzing and appropriately treating the
claims of creditors, including objecting to claims and trying claim
objections;
i. appear before this Court and any appellate courts or other
courts having jurisdiction over any matter associated with this
bankruptcy case; and
j. perform all other legal services and provide all other
legal advice to Ranches as may be required or deemed to be in the
interest of its estate in accordance with Ranches' rights and
duties as set forth in the Bankruptcy Code.
The firm will be paid at the rate of $575 per hour for attorneys
time and paralegals rates range from $125 to $175 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Hudson M. Jobe, Esq., a partner at Jobe Law PLLC, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Hudson M. Jobe, Esq.
Jobe Law PLLC
6060 North Central Expressway, Suite 500
Dallas, Texas 75206
Tel: (214) 807-0563
Email: hjobe@jobelawpllc.com
About Scanrock Oil & Gas Inc.
Scanrock Oil & Gas Inc. operates an integrated oil and gas
exploration and production platform.
Scanrock Oil & Gas Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-90001) on February 3,
2025. In its petition, the Debtor reports estimated assets between
$10 million and $50 million and estimated liabilities between $50
million and $100 million.
Honorable Bankruptcy Judge Mark X. Mullin handles the case.
The Debtor is represented by Thomas Daniel Berghman, Esq. at Munsch
Hardt Kopf & Harr PC.
SCANROCK OIL: Seeks to Hire Lain Faulkner & Co as Accountant
------------------------------------------------------------
Scanrock Oil & Gas Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire Lain, Faulkner &
Co., P.C. as accountants.
The firm will render these services:
a. serve as accountants and financial advisors for the
Debtors;
b. assist the Debtors and their counsel with matters related
to these Chapter 11 Cases;
c. assist the Debtors with preparation of financial
information pertaining to assets and liabilities of the estates,
cash flows, financial statements, and projections;
d. assist and/or prepare 13-week cash flow budget and variance
reports;
e. assist the Debtors with preparation of any bankruptcy
required reporting; and
f. perform all other financial and accounting services to the
Debtors in connection with these Chapter 11 Cases as may be
required or necessary.
The firm will be paid at these hourly rates:
Directors $440 to $560
Accounting Professionals $235 to $325
IT Professionals $300
Staff Accountants $195 to $275
Clerical and Bookkeepers $95 to $135
D. Brian Crisp, a director of Lain Faulkner & Co., disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
D. Brian Crisp
Lain, Faulkner & Co., P.C.
400 North St. Paul Street # 600
Dallas, TX 75201
Phone: (214) 720-1929
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.
SCANROCK OIL: Seeks to Hire Munsch Hardt Kopf & Harr as Attorney
----------------------------------------------------------------
Scanrock Oil & Gas Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire Munsch Hardt Kopf
& Harr, P.C. as attorneys for the oil and gas debtors.
The firm will render these services:
a. serve as attorneys of record for the O&G Debtors and to
provide representation and legal advice with respect to the O&G
Debtors' powers and duties as debtors in possession in the
continued operation of the O&G Debtors' business;
b. assist the O&G Debtors in carrying out their duties under
the Bankruptcy Code, including advising the O&G Debtors of such
duties, their obligations, and their legal rights;
c. take all necessary action to protect and preserve the O&G
Debtors' estates, including the prosecution of actions on the O&G
Debtors' behalf, the defense of actions commenced against the O&G
Debtors, the negotiation of disputes in which the O&G Debtors are
involved, and the preparation of objection, as necessary, to relief
sough and claims filed against the O&G Debtors' estates;
d. consult with the United States Trustee, any statutory
committee that may be formed, and all other creditors and parties
in interest concerning administration of these Chapter 11 Cases;
e. assist in potential sales of the O&G Debtors' assets;
f. prepare on behalf of the O&G Debtors all motions,
applications, answers, orders, reports, and other legal papers and
documents to further the Debtors' estates' interests and
objections, and to assist the O&G Debtors in preparation of
schedules, statements, and reports, and to represent the O&G
Debtors and their estates at all related hearings and at all
related meetings of creditors, United States Trustee interviews,
and the like;
g. assist the O&G Debtors in connection with preparing and
refining their chapter 11 plans and disclosures statements, and/or
all related agreements and documents necessary to facilitate an
exit from these Chapter 11 Cases, take appropriate action on behalf
of the O&G Debtors to obtain confirmation of such plans, and take
such further actions as may be required in connection with the
implementation of such plans;
h. assist the O&G Debtors in analyzing and appropriately
treating the claims of creditors, including objecting to claims and
trying claim objections;
i. appear before this Court and any appellate courts or other
courts having jurisdiction over any matter associated with these
Chapter 11 Cases; and
j. perform all other legal services and provide all other
legal advice to the O&G Debtors as may be required or deemed to be
in the interest of their estates in accordance with the O&G
Debtors' rights and duties as set forth in the Bankruptcy Code.
Munsch Hardt will be paid as follows:
Davor Rukavina, Shareholder $800 per hour
Thomas Berghman, Shareholder $700 per hour
Garrick Smith, Shareholder $580 per hour
Jonathan Petree, Associate $475 per hour
Jacob King, Associate $400 per hour
Heather Valentine, Paralegal $235 per hour
Munsch Hardt received $150,000 from the O&G Debtors as a retainer.
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a total retainer of $95,000 from the Debtors.
Mr. Berghman disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Davor Rukavina, Esq.
Thomas D. Berghman, Esq.
Garrick C. Smith, Esq.
500 N. Akard St., Ste. 4000
Dallas, TX 75201
Telephone: (214) 855-7500
E-mail: drukavina@munsch.com
E-mail: tberghman@munsch.com
E-mail: gsmith@munsch.com
About Scanrock Oil & Gas Inc.
Scanrock Oil & Gas Inc. operates an integrated oil and gas
exploration and production platform.
Scanrock Oil & Gas Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-90001) on February 3,
2025. In its petition, the Debtor reports estimated assets between
$10 million and $50 million and estimated liabilities between $50
million and $100 million.
Honorable Bankruptcy Judge Mark X. Mullin handles the case.
The Debtor is represented by Thomas Daniel Berghman, Esq. at Munsch
Hardt Kopf & Harr PC.
SCANROCK OIL: Taps Brad Walker as Chief Restructuring Officer
-------------------------------------------------------------
Scanrock Oil & Gas Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire Brad Walker, LLC,
D/B/A Riverbend Special Situations Group, as chief restructuring
officer.
The CRO will render these services:
Bankruptcy and Restructuring Responsibilities:
a. with the assistance of the current management of the
Company, manage the restructuring process of the Company under the
Bankruptcy Code, including working with the Company's employees,
professionals, secured lenders, any official committees, and/or
other creditors or stakeholders;
b. assist counsel and provide testimony in any Bankruptcy Code
proceeding;
c. establish communication protocol with all stakeholders;
d. assist in the preparation and development of financial
valuations, projections and cash flow budgets, including the
implementation of cash conservation strategies, tactics, and
processes where appropriate and feasible;
e. develop, prepare, and review monthly operating reports and
ensure they are filed on a timely basis;
f. evaluate strategic and liquidity options of the Company,
including the restructuring, refinancing, or reorganizing of the
Company and/or its assets and liabilities, or a sale of the
Company's assets pursuant to Section 363 of the Bankruptcy Code,
and assist current Company management with the development of a
plan for same;
g. authorize the company to pursue and, with the approval of
the Company's current management, consummate one or more sales
pursuant to Section 363 of the Bankruptcy Code; and
h. provide such other similar services as may be requested or
required, and in keeping with the ethical responsibilities of a
chapter 11 professional.
Executive Management:
a. participate in meetings between the Company and any other
applicable lender(s);
b. participate in meetings between the Company and any
existing or potential equity investors in the Company; and
c. participate in all meetings between the Company and its
vendors.
Lender Relationship Management:
a. assist with the Company's relationship with lender(s);
b. monitor the progress of the Company's business toward
stated goals; and
c. develop appropriate key indicator reports and provide the
same to the Company and applicable lender(s).
Accounting Management and Operations Support:
a. prepare and review the Company's rolling 13-week cash flow
statement ("Cash Flow Statement") and weekly variance analysis;
b. monitor Company performance against the Cash Flow Statement
and assist with communications regarding Cash Flow Statement
variances in periodic discussions with lender(s);
c. provide weekly budget to actual performance measurement
against the approved Cash Flow Statement, both weekly and
cumulatively;
d. oversee and approve all cash expenditures, cash transfers
and other cash related activity on a daily basis; and
e. identify and track cost saving initiatives on a weekly
basis.
Communication:
a. discuss the Company's financial condition and
opportunities, as understood at that time, with the Company's
management and stakeholders, as well as lender(s) and any capital
placement advisor.
The firm will be paid at these hourly rates:
Brad Walker (CRO) $525
Stuart Morton $475
Managing Directors $375 to $475
Directors $325
Associates $225
Brad Walker, a partner at Riverbend, disclosed in a court filing
that his firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Brad Walker
Brad Walker, LLC
d/b/a Riverbend Special Situations Group
Riverbend Solutions Group
12400 Coit Rd #900,
Dallas, TX 75251
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.
SHARK CLUB: Property Sale Proceeds to Fund Plan Payments
--------------------------------------------------------
Shark Club Logistics LLC filed with the U.S. Bankruptcy Court for
the Northern District of Georgia a Plan of Reorganization dated
March 3, 2025.
The Debtor owns five properties for renovation and resell. The
Debtor was formed in 2016 and is owned by Taronne Long, who is the
sole member and manager of the Debtor.
The properties are located at (i) 2005 Arlington Cir NW, Atlanta,
Georgia 30318 ("2005 Arlington"), (ii) 2581 Argo Drive, Smyrna,
Georgia 30080 ("2581 Argo"); (iii) 690 Cascade Ave SW, Atlanta,
Georgia 30310 ("690 Cascade"); (iv) 1809 Defoor Ave NW, Atlanta,
Georgia 30318 ("1809 Defoor"); and (v) 268 Chappell Road NW,
Atlanta, Georgia 30314 ("268 Chappell"). Debtor additionally owns
one parcel of raw land located on Brewster Street in Atlanta,
Georgia (the "Brewster Property") (the "Business").
Taronne Long will remain the sole member and manager of the Debtor.
Mr. Long does not take a salary from the Debtor.
This Plan deals with all property of Debtor and provides for
treatment of all Claims against Debtor and its property.
Class 17 shall consist of general unsecured claims not otherwise
specifically classified in the Plan. The allowed unsecured claims
total $664,417.63.
Class 18 shall consist of the Interest Claims (i.e. the claim of
Debtor's member(s) based upon ownership of Debtor). Taronne Long
will retain his 100% interest in Debtor.
"Administrative and General Unsecured Creditors Payment" means the
projected disposable income of the Debtor to be received in the
three-year-period beginning on the 28th day of the first full month
following the Effective Date and continuing until the three-year
anniversary of the Effective Date, which will be applied to make
payments under the Plan. Debtor's Administrative and General
Unsecured Creditors Payment shall be fixed based upon the amount
set forth this Plan as attached hereto labeled Administrative and
General Unsecured Creditors Payment and will be generated from the
sale of Debtor's real property. Debtor's only source of income is
the sale of real property.
Such Administrative and General Unsecured Creditors Payments shall
be disbursed as follows:
* First, pro-rata to the Holders of an Allowed Administrative
Expense Claims, pro rata with all other Allowed Administrative
Expense Claims, until all Allowed Administrative Expense Claims are
paid in full. Debtor anticipates the following administrative
expense claims: (1) Jones & Walden LLC, as counsel to the Debtor,
and (2) Todd E. Hennings as Subchapter V Trustee.
* Second, all remaining payments shall be paid to the Holders
of an Allowed Class 17 General Unsecured Claim, pro rata with all
other Allowed Class 17 General Unsecured Claims.
The source of funds for the payments pursuant to the Plan is the
rehabilitation and selling of real property.
A full-text copy of the Plan of Reorganization dated March 3, 2025
is available at https://urlcurt.com/u?l=K2NaFd from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Mandy L. Milner, Esq.
Jones & Walden LLC
699 Piedmont Avenue, NE
Atlanta, GA 30308
Tel: (404) 564-9300
Email: mmilner@joneswalden.com
About Shark Club Logistics
Shark Club Logistics, LLC, a company in Smyrna, Ga., filed a
Chapter 11 petition (Bankr. N.D. Ga. Case No. 24-62761) on Dec. 2,
2024, listing as much as $1 million to $10 million in both assets
and liabilities. Taronne Long, sole member of Shark Club Logistics,
signed the petition.
Jones & Walden, LLC, serves as the Debtor's legal counsel.
SILVERROCK DEVELOPMENT: Asks Court to Unwind Pre-Ch. 11 Equity Deal
-------------------------------------------------------------------
Vince Sullivan of Law360 reports that the California resort
developer SilverRock Development Co. filed an adversary complaint
in its Chapter 11 case on Tuesday, March 25, 2025, requesting that
a Delaware court overturn a pre-bankruptcy securitization
transaction that converted preferred shares into secured debt.
About SilverRock Development Company
SilverRock Development Company, LLC is a San Diego, Calif.-based
company primarily engaged in renting and leasing real estate
properties.
SilverRock filed Chapter 11 petition (Bankr. D. Del. Lead Case No.
24-11647) on August 5, 2024, with $100 million to $500 million in
both assets and liabilities. Robert S. Green, Jr., chief executive
officer, signed the petition.
Judge Mary F. Walrath handles the case.
The Debtor is represented by Jonathan M. Stemerman, Esq., at
Armstrong Teasdale.
SK INDUSTRIES: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of SK Industries, LLC, according to court dockets.
About SK Industries LLC
SK Industries, LLC, doing business as Pensacola Athletic Center, is
a comprehensive fitness facility offering 24-hour gym access,
personal training, childcare services, tennis courts, swimming
pools, and group fitness classes. The family-owned business has
been serving the Pensacola community since 1985, with a focus on
health and wellness for individuals of all ages.
SK Industries filed Chapter 11 petition (Bankr. N.D. Fla. Case No.
25-30138) on February 18, 2025, listing between $1 million and $10
million in both assets and liabilities.
The Debtor is represented by Byron W. Wright III, Esq., at Bruner
Wright, P.A.
SKYBIRD HOSPITALITY: Yann Geron Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 2 appointed Yann Geron, Esq., at Geron
Legal Advisors, LLC as Subchapter V trustee for Skybird Hospitality
Partners, LLC.
Mr. Geron will be paid an hourly fee of $890 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Geron declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Yann Geron, Esq.
Geron Legal Advisors, LLC
370 Lexington Avenue, Suite 1101
New York, NY 10017
Phone: (646) 560-3224
Email: ygeron@geronlegaladvisors.com
About Skybird Hospitality Partners
Skybird Hospitality Partners, LLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10399)
on March 3, 2025, with up to $50,000 in assets and $100,001 to
$500,000 in liabilities.
Judge Philip Bentley presides over the case.
Victor Tsai, Esq. represents the Debtor as legal counsel.
SKYX PLATFORMS: Board Amends Bylaws; Annual Meeting Set for July 9
------------------------------------------------------------------
SKYX Platforms Corp. filed a Form 8-K with the Securities and
Exchange Commission, revealing that on March 21, 2025, its Board of
Directors authorized the modification and restatement of the
Company's Second Amended and Restated Bylaws, which took effect
immediately after being adopted. Among other things, the Third
Amended and Restated Bylaws:
* update certain procedural mechanics and disclosure
requirements for stockholder nominations of directors and
submissions of proposals for other business made in connection with
annual and special meetings of stockholders, including to address
rules related to the use of universal proxy cards adopted by the
Securities and Exchange Commission under Rule 14a-19 promulgated
under the Securities Exchange Act of 1934, as amended; and
* require stockholders directly or indirectly soliciting proxies
from other stockholders to use a proxy card color other than white,
with the white proxy card being reserved for exclusive use by the
Board.
The Third Amended and Restated Bylaws also incorporate ministerial,
clarifying and conforming changes.
Furthermore, the Company's Board of Directors has established July
9, 2025, as the date for the 2025 Annual Meeting of Stockholders.
The record date for stockholders eligible to vote at the Annual
Meeting is set for May 13, 2025.
About Skyx Technologies
Headquartered in Pompano Beach, Florida, Sky Technologies develops
advanced platform technologies focused on enhancing safety,
quality, and ease of use in homes and buildings. With nearly 100
patents and pending applications, the Company's products are
designed to improve safety and lifestyle in residential and
commercial spaces. In 2023, Sky expanded by acquiring an online
retailer specializing in home lighting, ceiling fans, and
furnishings. The Company's technologies enable quick and safe
installation of light fixtures and ceiling fans without the need to
handle hazardous wires.
In its report dated March 24, 2025, the Company's auditor, M&K
CPAS, PLLC, issued a "going concern" qualification, citing the
Company's accumulated deficit, negative cash flows from operations,
and recurring net losses, which raise substantial doubt about its
ability to continue as a going concern.
SKYX reported a net loss of $35.77 million for the year ending Dec.
31, 2024, compared to a net loss of $39.73 million in 2023. As of
Dec. 31, 2024, SKYX reported total assets of $65.89 million, total
liabilities of $56.83 million, temporary equity of $5 million, and
total equity of $4.05 million. Additionally, as of Dec. 31, 2024,
SKYX had an accumulated deficit of $181.8 million.
SKYX PLATFORMS: Has $35.77M Loss in 2024, Faces Going Concern Doubt
-------------------------------------------------------------------
SKYX Platforms Corp. filed its annual report on Form 10-K with the
Securities and Exchange Commission, revealing a net loss of $35.77
million on revenue of $86.28 million for the year ending Dec. 31,
2024. This compares to a net loss of $39.73 million on revenue of
$58.78 million in 2023.
The Company has experienced net losses since its inception and
cannot guarantee that it will achieve sustainable revenue in the
future. Furthermore, the Company mentioned that the evolution of
its business makes it difficult to forecast future operational
results.
As of Dec. 31, 2024, SKYX reported total assets of $65.89 million,
total liabilities of $56.83 million, temporary equity of $5
million, and total equity of $4.05 million. Additionally, as of
Dec. 31, 2024, SKYX had an accumulated deficit of $181.8 million.
In its report dated March 24, 2025, the Company's auditor, M&K
CPAS, PLLC, issued a "going concern" qualification, citing the
Company's accumulated deficit, negative cash flows from operations,
and recurring net losses, which raise substantial doubt about its
ability to continue as a going concern.
SKYX stated that it will need additional funding in the short term.
If its operations do not reach the expected level of profitability
or experience delays, the Company will require continued financial
support, which may not be available on favorable terms. This could
result in the sale of certain assets or the discontinuation or
curtailment of operations.
"There is substantial doubt that the Company can continue as an
ongoing business for the next 12 months," the Company cautioned.
"If we are unable to continue as a going concern, we might have to
liquidate our assets, and the values we receive for our assets in
liquidation or dissolution could be significantly lower than the
values reflected in our financial statements. In addition, the
inclusion of an explanatory paragraph regarding substantial doubt
about our ability to continue as a going concern and our lack of
sufficient liquidity resources may materially adversely affect our
share price and our ability to raise new capital or to enter into
critical contractual relations with third parties. There is no
assurance that we will be able to adequately fund our operations in
the future."
The Company's liquidity sources include $15.5 million in cash and
cash equivalents, including $2.9 million in restricted cash held
for long-term purposes, and a $5.7 million working capital deficit
as of Dec. 31, 2024. The Company has a history of recurring
operating losses, with net cash used in operating activities
amounting to $18.3 million and $13.0 million during the years ended
Dec. 31, 2024 and 2023, respectively. SKYX has also generated net
cash provided by financing activities of $13.1 million and $22.7
million during 2024 and 2023, respectively. As a result, the
Company's management cannot confidently assert that there is no
substantial doubt it will be able to meet its obligations as they
become due within one year of the issuance of its financial
statements.
Management intends to mitigate these conditions by focusing on
continued growth, reducing cash used in operating activities
through increased revenues, and improving margins from products
sold to large retailers and via internet portals. If necessary,
management will also generate cash through financing activities,
including its at-the-market offering or other equity or debt
financing options.
The complete text of the Form 10-K is available for free at:
https://www.sec.gov/Archives/edgar/data/1598981/000164117225000290/form10-k.htm
About Skyx Technologies
Headquartered in Pompano Beach, Florida, Sky Technologies develops
advanced platform technologies focused on enhancing safety,
quality, and ease of use in homes and buildings. With nearly 100
patents and pending applications, the Company's products are
designed to improve safety and lifestyle in residential and
commercial spaces. In 2023, Sky expanded by acquiring an online
retailer specializing in home lighting, ceiling fans, and
furnishings. The Company's technologies enable quick and safe
installation of light fixtures and ceiling fans without the need to
handle hazardous wires.
SKYX PLATFORMS: Secures $1M Investment Via Preferred Stock Sale
---------------------------------------------------------------
SKYX Platforms Corp. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company and an
investor entered into a Securities Purchase Agreement resulting in
gross proceeds to the Company of $1.0 million, pursuant to which
the investor purchased 40,000 shares of the Company's Series A-1
Preferred Stock, no par value per share, at a purchase price of
$25.00 per share.
The Securities Purchase Agreement contains customary
representations, warranties, agreements and indemnification rights
and obligations of the parties and provides the purchaser with
certain registration rights. The Company intends to use the
proceeds for working capital and other general corporate purposes.
About SKYX Platforms Corp.
SKYX Platforms Corp. offers a series of highly disruptive
advanced-safe-smart platform technologies, with over 97 U.S. and
global patents and patent pending applications. Additionally, the
Company owns over 60 lighting and home decor websites for both
retail and commercial segments. The Company's technologies place
an emphasis on high quality and ease of use, while significantly
enhancing both safety and lifestyle in homes and buildings.
The Woodlands, TX-based M&K CPAS, PLLC, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company has an accumulated deficit,
negative cash flows from operations and recurring net losses, which
raise substantial doubt about its ability to continue as a going
concern.
As of September 30, 2024, SKYX Platforms had $64,970,206 in total
assets, $61,135,636 in total liabilities, and $3,834,570 in total
stockholders' equity.
SOUTH REGENCY: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
The U.S. Bankruptcy Court for the District of Kansas granted South
Regency Shops, LLC's motion to use cash collateral.
The interim order signed by Judge Dale Somers authorized the
company to pay the expenses set forth in its budget, including
insurance and taxes, using the cash collateral of Union Bank and
Trust Company.
South Regency Shops is indebted to Union Bank, which asserts a
security interest in and liens on its assets.
As protection for the use of its cash collateral, Union Bank will
be granted replacement security interests in, and liens on, all
property acquired by South Regency Shops after its bankruptcy
filing and will receive monthly payments of $4,331.44 beginning
this month.
In addition, South Regency Shops was ordered to keep the bank's
collateral insured.
About South Regency Shops LLC
South Regency Shops, LLC owns a shopping center situated at 9296
Metcalf Avenue in Overland Park, Kan., with an estimated current
value of $810,000.
South Regency Shops filed Chapter 11 petition (Bankr. D. Kan. Case
No. 25-20140) on February 10, 2025, listing total assets of
$817,347 and total liabilities of $2,578,359.
Judge Dale L. Somers handles the case.
The Debtor is represented by:
Colin Gotham, Esq.
Evans & Mullinix, P.A.
7225 Renner Road, Suite 200
Shawnee, KS 66217
Tel: (913) 962-8700
Fax: (913) 962-8701
Email: cgotham@emlawkc.com
SPHERE 3D: Settles Litigation With Gryphon Digital Mining
---------------------------------------------------------
Sphere 3D Corp. has reached a confidential settlement with Gryphon
Digital Mining, Inc. to resolve all claims against each other on
mutually satisfactory terms that will result in the complete
dismissal of the litigation.
"As a Company, we are focused on the future and our long-term
strategy," said Kurt Kalbfleisch, Acting CEO. "Resolving this
matter allows us to move on from this distraction and direct our
time and resources toward strategic growth and delivering value to
our stakeholders."
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.
SPIN HOLDCO: CION Marks $9.9 Million 1L Loan at 15% Off
-------------------------------------------------------
CION Investment Corp. has marked its $9,974,000 loan extended to
Spin Holdco Inc. to market at $8,445,000 or 85% of the outstanding
amount, according to CION'S Form 10-K for the fiscal year ended
December 31, 2024, filed with the U.S. Securities and Exchange
Commission.
CION is a participant in a Senior Secured First Lien Debt to Spin
Holdco Inc. The loan accrues interest at a rate of S+400, 0.75%
SOFR Floor per annum. The loan matures on March 4, 2028.
CION is an externally managed, non-diversified, closed-end
management investment company that has elected to be regulated as a
BDC under the Investment Company Act of 1940. CION elected to be
treated for U.S. federal income tax purposes as a RIC, as defined
under Subchapter M of the Internal Revenue Code of 1986.
CION Investment Management, LLC, is a registered investment adviser
and affiliate of CION. CIM is a controlled and consolidated
subsidiary of CIG and part of the CION Investments group of
companies, or CION Investments.
CION Investments is a manager of alternative investment solutions
that focuses on alternative credit strategies for individual
investors. CION Investments is headquartered in New York, with
offices in Los Angeles.
CION is led by Mark Gatto and Michael A. Reisner as Co-chief
executive officer and director; and Keith S. Franz, chief financial
officer.
The Company can be reached through:
CĪON Investment Corporation
100 Park Avenue, 25th Floor
New York, NY
About Spin Holdco Inc.
Spin Holdco Inc. provides laundry solutions. The Company offers
residential and commercial laundry solutions, as well as tire
inflation and vacuum vending services at convenience stores and gas
stations. Spin Holdco serves clients in North America and Europe.
SPINAL USA: CION Marks $1 Million Loan at 48% Off
-------------------------------------------------
CION Investment Corp. has marked its $1,026,000 loan extended to
SPINAL USA Inc./Precision Medical Inc. to market at $529,000 or 52%
of the outstanding amount, according to CION'S Form 10-K for the
fiscal year ended December 31, 2024, filed with the U.S. Securities
and Exchange Commission.
CION is a participant in a Senior Secured First Lien Debt to SPINAL
USA Inc./Precision Medical Inc. The loan accrues interest at a rate
of L+950 per annum. The loan matures on May 29, 2025.
CION is an externally managed, non-diversified, closed-end
management investment company that has elected to be regulated as a
BDC under the Investment Company Act of 1940. CION elected to be
treated for U.S. federal income tax purposes as a RIC, as defined
under Subchapter M of the Internal Revenue Code of 1986.
CION Investment Management, LLC, is a registered investment adviser
and affiliate of CION. CIM is a controlled and consolidated
subsidiary of CIG and part of the CION Investments group of
companies, or CION Investments.
CION Investments is a manager of alternative investment solutions
that focuses on alternative credit strategies for individual
investors. CION Investments is headquartered in New York, with
offices in Los Angeles.
CION is led by Mark Gatto and Michael A. Reisner as Co-chief
executive officer and director; and Keith S. Franz, chief financial
officer.
About SPINAL USA Inc.
Precision Spine is a spinal device company offering a full line of
spinal pathology solutions to meet the needs of patients, surgeons
and healthcare providers. With its two wholly owned subsidiaries,
Spinal USA, Inc., and Precision Medical, Inc., the company's
objective is to positively affect patient recovery and overall
surgical outcomes by providing high quality, competitively priced
spinal products that are made in the USA and supported by excellent
customer service.
SPINAL USA: CION Marks $1.5 Million Loan at 48% Off
---------------------------------------------------
CION Investment Corp. has marked its $1,596,000 loan extended to
SPINAL USA Inc./Precision Medical Inc. to market at $822,000 or 52%
of the outstanding amount, according to CION'S Form 10-K for the
fiscal year ended December 31, 2024, filed with the U.S. Securities
and Exchange Commission.
CION is a participant in a Senior Secured First Lien Debt to SPINAL
USA Inc./Precision Medical Inc. The loan accrues interest at a rate
of L+950 per annum. The loan matures on May 29, 2025.
CION is an externally managed, non-diversified, closed-end
management investment company that has elected to be regulated as a
BDC under the Investment Company Act of 1940. CION elected to be
treated for U.S. federal income tax purposes as a RIC, as defined
under Subchapter M of the Internal Revenue Code of 1986.
CION Investment Management, LLC, is a registered investment adviser
and affiliate of CION. CIM is a controlled and consolidated
subsidiary of CIG and part of the CION Investments group of
companies, or CION Investments.
CION Investments is a manager of alternative investment solutions
that focuses on alternative credit strategies for individual
investors. CION Investments is headquartered in New York, with
offices in Los Angeles.
CION is led by Mark Gatto and Michael A. Reisner as Co-chief
executive officer and director; and Keith S. Franz, chief financial
officer.
About SPINAL USA Inc.
Precision Spine is a spinal device company offering a full line of
spinal pathology solutions to meet the needs of patients, surgeons
and healthcare providers. With its two wholly owned subsidiaries,
Spinal USA, Inc., and Precision Medical, Inc., the company's
objective is to positively affect patient recovery and overall
surgical outcomes by providing high quality, competitively priced
spinal products that are made in the USA and supported by excellent
customer service.
SSS MILWAUKEE: Hearing to Use Cash Collateral Set for April 2
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, is set to hold a hearing on April 2 to consider
another extension of SSS Milwaukee Hospitality, LLC's authority to
use cash collateral.
The court's previous order authorized the company to use the cash
collateral of Old National Bank, a senior secured creditor, in
accordance with its budget, which covers the period from March 14
to 27.
The order issued on March 19 allowed SSS to use up to $57,860.43 in
cash collateral for payroll and payroll expenses and granted Old
National Bank replacement liens on collateral in which the secured
creditor held a valid lien as of the petition date.
Old National Bank is represented by:
Rachael Blackburn, Esq.
Aronberg Goldgehn Davis & Garmisa
225 W. Washington Street, Suite 2800
Chicago, IL 60606
Phone: 312-755-3165
rblackburn@agdglaw.com
About SSS Milwaukee Hospitality
SSS Milwaukee Hospitality, LLC is a hospitality company that owns a
hotel located at 5311 South Howell Avenue in Milwaukee, Wis.
SSS Milwaukee Hospitality filed Chapter 11 petition (Bankr. N.D.
Ill. Case No. 25-03642) on March 10, 2025. In its petition, the
Debtor reported between $1 million and $10 million in assets and
between $10 million and $50 million in liabilities.
Judge Donald R. Cassling handles the case.
The Debtor is represented by:
Penelope Bach, Esq.
Bach Law Offices
P.O. Box 1285
Northbrook, IL 60065
Tel: (847) 564-0808x216
Fax: (847) 564-0985
Email: pnbach@bachoffices.com
STARWOOD PROPERTY: Fitch Gives BB+(EXP) Rating on $400M Unsec Notes
-------------------------------------------------------------------
Fitch Ratings expects to assign a 'BB+(EXP)' rating to Starwood
Property Trust, Inc.'s (Starwood) planned issuance of $400 million
of senior unsecured sustainability notes. The fixed rate of
interest and final maturity date will be determined at the time of
issuance.
Key Rating Drivers
Equal in Rank: The expected rating on the new senior unsecured
sustainability notes is equalized with the ratings assigned to
Starwood's existing senior unsecured debt, as the new notes will
rank equally in the capital structure. The unsecured debt rating is
equalized with Starwood's Long-Term Issuer Default Rating (IDR) of
'BB+', reflecting the availability of unencumbered assets and
average recovery prospects for creditors in a stress scenario.
Leverage Neutral: Fitch expects the transaction will be neutral to
Starwood's leverage, given that proceeds will be used for general
corporate purposes, including to repay existing borrowings.
Starwood's leverage, calculated by Fitch as gross debt-to-tangible
equity, including off-balance sheet, non-recourse funding adding
back accumulated depreciation on real estate to tangible equity,
was approximately 3.3x at Dec. 31, 2024.
Fitch believes it is appropriate to add accumulated depreciation on
the real estate portfolio back to tangible equity, as the firm has
a strong track record of recognizing the gross book value of the
portfolio at exit. Leverage would be considerably lower, at 2.1x,
if all non-recourse borrowings were excluded from the
calculations.
Strong Affiliation with Manager: Starwood's ratings reflect the
strength of its affiliation with Starwood Capital Group (SCG),
which provides access to deal flow and deep industry and collateral
expertise. The affiliation also provides a solid market position
within SCG's core segments, the relative diversity of its business
model, consistent operating performance, appropriate leverage,
diverse and well-laddered funding profile, and solid liquidity.
Challenging Sector Conditions: The challenging commercial real
estate operating environment and its impact on credit quality
weighs on Fitch's assessment of Starwood and its peers. Rating
constraints also include Starwood's largely secured funding profile
and reliance on wholesale funding sources.
Stable Operating Performance: The Stable Outlook reflects Fitch's
view that Starwood's credit quality will remain relatively solid
compared to peers in a deteriorating operating environment,
exhibited by low credit losses. Fitch expects that Starwood would
generate stable and consistent earnings and maintain leverage at a
level appropriate for the risk profile of the portfolio. Fitch also
expects the company to opportunistically issue unsecured debt, to
maintain its funding flexibility, appropriately manage its debt
maturity profile and maintain solid liquidity.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A sustained increase in Fitch-calculated leverage, including all
non-recourse debt, above 5x and/or a sustained increase in
company-calculated leverage above 3x;
- A sustained reduction in the proportion of unsecured debt funding
below 10%;
- A material deterioration in credit performance that results in
write-offs above longer-term historical levels;
- An inability to maintain sufficient liquidity relative to
near-term debt maturities, unfunded commitments and margin call
potential;
- A reduction in business line diversity due to a material shift in
strategy;
- A reduction in core earnings and earnings coverage of the
dividend.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A sustained increase in the proportion of unsecured debt
approaching 35% of total debt;
- The maintenance of leverage at-or-below 3x on a Fitch-calculated
basis, including on-balance sheet non-recourse debt;
- The maintenance of strong asset quality performance;
- Consistent core earnings generation;
- The maintenance of a strong liquidity profile.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
The expected rating on the new senior unsecured sustainability
notes is equalized with the ratings assigned to Starwood's existing
senior unsecured debt, as the new notes will rank equally in the
capital structure. The unsecured debt rating is equalized with
Starwood's Long-Term IDR, reflecting the availability of
unencumbered assets and average recovery prospects for creditors in
a stressed scenario.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The expected rating on the new senior unsecured sustainability
notes is sensitive to changes to Starwood's Long-Term IDR,
unsecured funding mix and the level of unencumbered assets relative
to outstanding unsecured debt. An increase in secured debt and/or a
sustained decline in the level of unencumbered assets, which
weakens recovery prospects on the unsecured debt, could result in
the unsecured debt ratings being notched down from the Long-Term
IDR.
ADJUSTMENTS
The Standalone Credit Profile (SCP) has been assigned in line with
the implied SCP.
The Business Profile score has been assigned below the implied
score due to the following adjustment reason: Business model
(negative).
Date of Relevant Committee
June 11, 2024
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating
----------- ------
Starwood Property
Trust, Inc.
senior unsecured LT BB+(EXP) Expected Rating
STATINMED LLC: CION Marks $12.4 Million 1L Loan at 63% Off
----------------------------------------------------------
CION Investment Corp. has marked its $12,410,000 loan extended to
STATinMED LLC to market at $4,592,000 or 37% of the outstanding
amount, according to CION'S Form 10-K for the fiscal year ended
December 31, 2024, filed with the U.S. Securities and Exchange
Commission.
CION is a participant in a Senior Secured First Lien Debt to
STATinMED LLC. The loan accrues interest at a rate of S+950, 2.00%
SOFR Floor per annum. The loan matures on July 1, 2027.
CION is an externally managed, non-diversified, closed-end
management investment company that has elected to be regulated as a
BDC under the Investment Company Act of 1940. CION elected to be
treated for U.S. federal income tax purposes as a RIC, as defined
under Subchapter M of the Internal Revenue Code of 1986.
CION Investment Management, LLC, is a registered investment adviser
and affiliate of CION. CIM is a controlled and consolidated
subsidiary of CIG and part of the CION Investments group of
companies, or CION Investments.
CION Investments is a manager of alternative investment solutions
that focuses on alternative credit strategies for individual
investors. CION Investments is headquartered in New York, with
offices in Los Angeles.
CION is led by Mark Gatto and Michael A. Reisner as Co-chief
executive officer and director; and Keith S. Franz, chief financial
officer.
About STATinMED LLC
STATinMED -- www.statinmed.com -- provides services including
outcomes research analysis, meta-analysis, literature review,
medical writing, litigation support, data visualization and
educational seminars.
SUNNOVA ENERGY: Revises EZOP Credit Facility
--------------------------------------------
Zachary Fleming of Bloomberg Law reports that Sunnova has agreed to
revise its EZOP credit facility, eliminating borrowing commitments
and imposing tighter cash restrictions.
Key terms of the agreement include:
-- Approximately $172 million remains outstanding under the
Sunnova EZ-Own Portfolio (EZOP) revolver.
-- Lender commitments reduced to $0, making all future advances
discretionary.
-- Sunnova prohibited from requesting new commitments or
extending terms.
-- Payment waterfall structure revised.
-- Distributions restricted until full debt repayment.
-- Sunnova required to pledge an additional $60.9 million in
solar loans as collateral.
-- Default deadline for completing a takeout transaction
extended to April 21 from March 21.
-- Sunnova plans to negotiate refinancing or restructuring of
the facility.
About Sunnova Energy
Sunnova Energy International Inc. (NYSE: NOVA) is an
industry-leading adaptive energy services company focused on making
clean energy more accessible, reliable, and affordable for
homeowners and businesses. Through its adaptive energy platform,
Sunnova provides a better energy service at a better price to
deliver its mission of powering energy independence.
Founded in Houston, Texas in 2012, Sunnova started its journey to
create a better energy service at a better price. Driven by the
changing energy landscape, technology advancements, and demand for
a cleaner, more sustainable future, we are proud to help pioneer
the energy transition.
SWAN PIZZA: Gets Interim OK to Use Cash Collateral Until May 8
--------------------------------------------------------------
Swan Pizza, Inc. received interim approval from the U.S. Bankruptcy
Court for the Middle District of Florida, Orlando Division to use
cash collateral until May 8.
The interim order authorized Swan Pizza to use the cash collateral
of secured creditors to pay ordinary and necessary business
expenses as set forth in its budget.
Secured creditors Channel Partners Capital, LLC and the Department
of Revenue were granted post-petition replacement liens on cash
collateral with the same priority and validity as their
pre-bankruptcy liens.
Swan Pizza was ordered to keep its property insured as additional
protection to the secured creditors.
The next hearing is scheduled for May 8.
About Swan Pizza
Swan Pizza, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03735) on July 22,
2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Tiffany P. Geyer presides over the case.
The Debtor is Represented By:
Robert H. Zipperer, Esq.
Tel: 386-226-1151
Email: robertzipperer@bellsouth.net
TEKNATOOL USA: Gets Interim OK to Use Cash Collateral
-----------------------------------------------------
Teknatool USA, Inc. got the green light from the U.S. Bankruptcy
Court for the Middle District of Florida, Tampa Division to use
cash collateral.
The interim order signed by Judge Catherine Peek McEwen authorized
the company to use cash collateral to pay the expenses set forth in
its budget, with a 10% variance allowed.
As protection for the use of its cash collateral, Pathward,
National Association, a secured creditor, was granted a
post-petition lien on its collateral to the same extent and with
the same validity and priority as its pre-bankruptcy lien.
The next hearing is scheduled for April 10.
The authorization will continue until further order of the court.
About Teknatool USA Inc.
Teknatool USA Inc., a company in Seminole, Fla., offers a wide
array of woodturning tools and accessories, including lathes and
chucks, catering to both hobbyists and professionals in the
woodworking community.
Teknatool USA filed Chapter 11 petition (Bankr. M.D. Fla. Case No.
25-01248) on March 1, 2025. In its petition, the Debtor reported
between $1 million and $10 million in both assets and liabilities.
Judge Catherine Peek McEwen handles the case.
The Debtor is represented by:
Joel Aresty, Esq.
Joel M. Aresty, PA
309 1st Ave. S.
Tierra Verde, FL 33715
Tel: (305) 904-1903
Email: aresty@icloud.com
TITAN ENVIRONMENTAL: Raises $1MM From Preferred Stock Offering
--------------------------------------------------------------
Titan Environmental Solutions Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that between
March 5 and March 7, 2025, the Company, consummated the
transactions contemplated by Subscription Agreements dated February
21, 2025, pursuant to which the Company offered to certain
accredited investors up to 850,000 shares of its Series C
Convertible Preferred Stock, par value $0.0001 per share, for a
purchase price of $2.00 per share.
Each of the five purchasers of shares of Series C Preferred Stock
is an accredited investor and is a stockholder of and lender to the
Company. The purchasers included Frank Celli, a director of the
Company. The purchasers subscribed to purchase an aggregate of
500,000 shares of Series C Preferred Stock for an aggregate
purchase price of $1,000,000. The proceeds of the offering will be
used by the Company for working capital and the payment of
outstanding payables.
The Subscription Agreements provide that it is the intention of the
Company and each purchaser that the purchase price for the shares
of Series C Preferred Stock be an amount equal to the lesser of (i)
$2.00 per share and (ii) the quotient of (a) the product of (x) the
price per share at which the shares of the Company's Common Stock,
par value $0.0001 per share, is sold by the Company in its planned
public offering of shares of Common Stock on the terms set forth in
the Company's pending Registration Statement on Form S-1
(Registration No. 333-275136), multiplied by (y) 40, divided by (b)
100, assuming a reverse stock split of the Common Stock at a ratio
of 1:100 to take place at or prior to the closing of the Public
Offering, with corresponding adjustment to be made if the actual
ratio implemented by the Company is different. If the Alternate
Price is less than $2.00, then the Company has agreed to issue to
each purchaser of Series C Preferred Stock within five business
days of the date of the closing of the Public Offering a number of
additional shares of Series C Preferred Stock equal to the
difference between (A) the number of shares of Series C Preferred
Stock that could have been purchased in the offering with the
purchaser's subscription amount, as set forth in the purchaser's
Subscription Agreement, at a purchase price per share equal to the
Alternate Price, less (B) the number of shares of Series C
Preferred Stock previously issued to such purchaser under the
Subscription Agreement.
The Subscription Agreements also grant to the purchasers of shares
of Series C Preferred Stock, among other rights, the right to
participate in certain subsequent offerings of securities by the
Company and the right to exchange their shares of Series C
Preferred Stock for the securities issued in certain subsequent
offerings of securities by the Company.
Description of the Series C Preferred Stock
On March 6, 2025, the Company filed a Certificate of Designation of
the Preferences of Preferred Stock pursuant to which it authorized
the issuance of up to 6.5 million shares of Series C Preferred
Stock and created the terms of the Series C Preferred Stock. The
principal terms of the Series C Preferred Stock are summarized
below.
Conversion Rights:
Each share of Series C Preferred Stock has a stated value of $2.40
and is convertible into a number of shares of Common Stock equal to
(x) the stated value of the Series C Preferred Stock being
converted plus all accrued but unpaid dividends, divided by (y)
$0.05 per share (the "Conversion Price"); provided, however, that
holders of Series C Preferred will not be able to convert shares of
Series C Preferred Stock and receive shares of Common Stock upon
such conversion to the extent that after giving effect to such
issuance, the holder and such holder's affiliates would
beneficially own in excess of 4.99% of the number of shares of
Common Stock outstanding immediately after giving effect to the
issuance of the shares of Common Stock issuable upon conversion of
the applicable shares of Series C Preferred Stock. The Conversion
Price is subject to adjustment for stock splits, stock combinations
and the like of the Common Stock and in the event of an issuance of
Common Stock at a price per share lower than the Conversion Price
then in effect, subject to an exception for certain exempt
issuances.
Voting Rights:
Except as required by law or as specifically provided in the
Company's articles of incorporation, the holders of Series C
Preferred Stock are not entitled to vote, as a separate class or
otherwise, on any matter presented to the stockholders of the
Company for their action; provided, however, that such holders will
be entitled, on the same basis as holders of Common Stock, to
receive notice of such action or meeting. However, as long as any
shares of Series C Preferred are outstanding, the Company may not,
without the affirmative vote of the holders of a majority of the
then-outstanding shares of the Series C Preferred Stock, (a) alter
or change adversely the powers, preferences or rights given to the
Series C Preferred Stock, (b) amend its articles of incorporation
or other charter documents in any manner that adversely affects any
rights of the holders of Series C Preferred Stock, (c) increase the
number of authorized shares of Series C Preferred Stock, or (d)
enter into any agreement with respect to any of the foregoing.
Dividend Rights:
Holders of Series C Preferred Stock are entitled to receive
dividends on shares of Series C Preferred Stock equal (on an
as-if-converted-to-Common-Stock basis disregarding for such purpose
any conversion limitations) to and in the same form as dividends
actually paid on shares of the Common Stock when, as and if such
dividends are paid on shares of the Common Stock; provided,
however, that if a dividend is to be paid in Common Stock, a holder
of Series C Preferred Stock will not be entitled to receive such
stock dividend payment to the extent such payment would cause the
Common Stock beneficial ownership percentage of such holder to
exceed the Beneficial Ownership Limitation and the portion of such
stock dividend payment that would exceed the Beneficial Ownership
Limitation will be held in abeyance for the benefit of such holder
until such time or times, if ever, as its right thereto would not
result in such holder and its affiliates exceeding the Beneficial
Ownership Limitation, at which time or times such holder will be
issued such unpaid stock dividend payment to the same extent as if
there had been no such limitation.
Liquidation Rights:
Upon the liquidation or dissolution of the Company, the holders of
Series C Preferred Stock will be entitled to receive out of the
assets of the Company, whether capital or surplus, the same amount
that a holder of Common Stock would receive if the Series C
Preferred Stock were fully converted (disregarding for such
purposes any conversion limitations) to Common Stock, which such
amounts following will be paid pari passu with all holders of
Common Stock.
About Titan Environmental
Bloomfield Hills, Mich.-based Titan Environmental Solutions, Inc.
is a professional service firm that provides consultation on
regulatory compliance to departments at corporations, public
agencies, and residential communities to ensure that its clients
are aware of and take steps to comply with relevant laws and
regulations. The firm also offers solutions to remove the risk
caused by harmful environmental hazards.
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, for the three months ended March 31, 2024, the Company had
a net loss of $2,258,944. The working capital of the Company was a
deficit of $13,123,723 as of March 31, 2024 (deficit of $10,935,108
as of December 31, 2023). The March 31, 2024 working capital
deficiency includes $2,257,090 of principal repayments from the
Michaelson Note due by June 30, 2024; the Company currently does
not have sufficient funds to repay this debt. As a result of these
factors, management has concluded that there is substantial doubt
about the Company's ability to continue as a going concern for a
period of 12 months.
As of June 30, 2024, Titan Environmental Solutions had $41,603,902
in total assets, $24,707,879 in total liabilities, $6,899,967 in
mezzanine equity, and $9,996,056 in total stockholders' equity.
TRAVELERS XPRESS: Aleida Martinez Molina Named Subchapter V Trustee
-------------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Aleida Martinez Molina,
Esq., as Subchapter V trustee for Travelers Xpress Services, Inc.
Ms. Molina will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Molina declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Aleida Martinez Molina, Esq.
2121 NW 2nd Avenue, Suite 201
Miami, FL 33127
Telephone: (305) 297-1878
Email: Martinez@subv-trustee.com
About Travelers Xpress Services
Travelers Xpress Services Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12320) on
March 3, 2025, with $500,001 to $1 million in assets and
liabilities.
Judge Peter D. Russin presides over the case.
Debi Gheorge-Alten, Esq., at Debi Gheorge-Alten, PA represents the
Debtor as legal counsel.
TRISTATE DEVELOPMENT: Case Summary & Three Unsecured Creditors
--------------------------------------------------------------
Debtor: Tristate Development LLC
1015 Walker Woods Drive
Great Falls, VA 22066
Business Description: The Debtor owns a 37.548-acre property
located at 0 Lusby's Lane, Brandywine, MD
20613, with an estimated value of $1.6
million.
Chapter 11 Petition Date: March 25, 2025
Court: United States Bankruptcy Court
District of Maryland
Case No.: 25-12552
Debtor's Counsel: Steven Greenfeld, Esq.
LAW OFFICE OF STEVEN H. GREENFELD
325 Ellington Blvd, #610
Gaithersburg MD 20878
E-mail: steveng@cohenbaldinger.com
Total Assets: $1,600,000
Total Liabilities: $1,290,107
The petition was signed by Lahyan Diab as managing member.
A full-text copy of the petition, which includes a list of the
Debtor's three unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/Y2VSSFI/Tristate_Development_LLC__mdbke-25-12552__0001.0.pdf?mcid=tGE4TAMA
US COATING: To Sell Vehicle to Nyjel Andreas for $65,000
--------------------------------------------------------
US Coating Specialists LLC seeks permission from the U.S.
Bankruptcy Court for the Southern District of Florida, West Palm
Beach Division, to sell Vehicle, free and clear of liens, claims,
and encumbrances.
The Debtor owns the 2017 Ford F450 truck, VIN 1FT8W4DT1HEE90122 and
will sell it to Nyjel Andreas for the sum of $65,000.
The Debtor believes that the sale of the Vehicle to Andreas is in
the best interests of the Debtor, its estate, and all creditors.
The Debtor believes that the Purchase Price is fair, reasonable,
and is the highest and best price for the Vehicle.
Ford Motor Company asserts a purchase money security interest in
the Vehicle in the approximate amount of $23,620.00. The Debtor
proposes to pay FMC lien in full from the proceeds of the sale.
About US Coating Specialists LLC
US Coating Specialists, LLC is a licensed commercial roofing
company in Florida, offering services like SPF spray foam,
silicone, and metal roofing. It also provides roof repairs,
maintenance, and emergency services for commercial and industrial
buildings. The company works with trusted partners and offers
financing options for new roofing systems.
US Coating Specialists filed Chapter 11 petition (Bankr. S.D. Fla.
Case No. 25-11972) on February 25, 2025, listing up to $10 million
in both assets and liabilities. Anthony Flett, chief executive
officer of US Coating Specialists, signed the petition.
Judge Mindy A. Mora oversees the case.
Mark F. Robens, Esq., at Stichter, Riedel, Blain, & Postler P.A.,
represents the Debtor as legal counsel.
VICTORY HOLDING: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Victory Holding Corp
d/b/a Victory Holding Corporation
175-12 Mayfield Rd
Jamaica NY 11432
Business Description: Victory Holding is a single asset real
estate debtor, as defined in 11 U.S.C.
Section 101(51B).
Chapter 11 Petition Date: March 26, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-41461
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Joshua R. Bronstein, Esq.
JOSHUA R. BRONSTEIN & ASSOCIATES, PLLC
114 Soundview Drive
Port Washington NY 11050
Tel: 516-698-0202
E-mail: brons5@yahoo.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Gerard Agard, in his capacity as
president.
The Debtor failed to provide a list of its 20 largest unsecured
creditors in the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/6AC346I/VICTORY_HOLDING_CORP__nyebke-25-41461__0001.0.pdf?mcid=tGE4TAMA
VIEWBIX INC: Acquires Metagramm, Issuing 1.32M Shares in Exchange
-----------------------------------------------------------------
Viewbix Inc. filed a Form 8-K with the Securities and Exchange
Commission, announcing it entered into a securities exchange
agreement with Metagramm Software Ltd., an Israeli company, and its
shareholders, pursuant to which Viewbix issued 1,323,000 shares of
its common stock, representing 19.99% of its outstanding capital,
to Metagramm's shareholders in exchange for 100% of Metagramm's
issued and outstanding share capital on a fully diluted and
post-closing basis, which represents 718,520 Metagramm ordinary
shares. The transaction, completed on March 24, 2025, made
Metagramm a wholly owned subsidiary. The shares issued will be
held in escrow for 30 days due to a tax ruling request with the
Israeli Tax Authority.
The Company also agreed to pay the Metagramm Shareholders cash
earn-out payments of up to an aggregate sum of $2.0 million on a
pro rata basis upon the achievement of certain financing and
revenue milestones during the three year period following the
closing date of the transactions contemplated by the Agreement.
Under the Agreement, the Company and Metagramm have ended the
securities exchange agreement they made on July 31, 2024.
The Agreement included standard representations, warranties, and
covenants from the Company, Metagramm, and the Metagramm
Shareholders. These were made solely for the Agreement's purposes,
as of specific dates, and were meant to benefit only the parties
involved, with limitations agreed upon by them.
About Viewbix
Headquartered in Ramat Gan, Israel, Viewbix and its subsidiaries,
Gix Media and Cortex Media Group Ltd., operate in the field of
digital advertising. The Group has two main activities that are
reported as separate operating segments: the search segment and the
digital content segment. The search segment develops a variety of
technological software solutions, which perform automation,
optimization, and monetization of internet campaigns, for the
purposes of obtaining and routing internet user traffic to its
customers. The search segment activity is conducted by Gix Media.
The digital content segment is engaged in the creation and editing
of content, in different languages, for different target audiences,
for the purposes of generating revenues from leading advertising
platforms, including Google, Facebook, Yahoo and Apple, by
utilizing such content to obtain and route internet user traffic
for its customers. The digital content segment activity is
conducted by Cortex.
In its report dated March 21, 2025, Brightman Almagor Zohar & Co.,
the Company's auditor since 2012, issued a "going concern"
qualification, citing that the decrease in revenues and cash flows
from operations may result in the Company's inability to repay its
debt obligations during the 12-month period following the issuance
date of these financial statements. These conditions raise a
substantial doubt about the Company's ability to continue as a
going concern.
Viewbix Inc. reported a net loss of $14.11 million for the year
ending Dec. 31, 2024, compared to a net loss of $8.69 million for
the year ended Dec. 31, 2023. As of Dec. 31, 2024, the Company had
$22.07 million in total assets, $12.93 million in total current
liabilities, $1.64 million in total non-current liabilities, and
$7.51 million in total equity.
W.D. TOWNLEY: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Three affiliates that simultaneously filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
W.D. Townley and Son Lumber Company, Inc. (Lead) 25-41053
13668 Highway 79S
Henderson, TX 75652
Townley Pallet Manufacturing, LLC 25-41057
13668 US Highway 79 S
Henderson, TX 75654-5645
TLC Transportation, L.L.C. 25-41058
13667 US-79
Henderson, TX 75654
Business Description: The Debtors, based in Henderson, Texas,
operate a lumber milling business. Townley
Lumber processes lumber used for pallet
construction. TPM owns the property where
the milling operations take place. TLC
Transportation transports pallets in
truckloads to customer locations.
Chapter 11 Petition Date: March 26, 2025
Court: United States Bankruptcy Court
Northern District of Texas
Judge: Hon. Edward L Morris
Debtor's
Bankruptcy
Counsel: Joseph Fredrick Postnikoff, Esq.
ROCHELLE McCULLOGH, LLP
300 Throckmorton Street, Suite 520
Fort Worth TX 76102-2929
Tel: (817) 347-5261
Fax: (817) 347-5269
E-mail: JPostnikoff@romclaw.com
Lead Debtor's
Estimated Assets: $1 million to $10 million
Lead Debtor's
Estimated Liabilities: $1 million to $10 million
The petitions were signed by Billy J. Townley as president.
Full-text copies of the petitions, which include lists of the
Debtors' 20 largest unsecured creditors, are available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/KV43AOA/WD_Townley_and_Son_Lumber_Company__txnbke-25-41053__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/UK3FHFA/Townley_Pallet_Manufacturing_LLC__txnbke-25-41057__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/UU6CDSQ/TLC_Transportation_LLC__txnbke-25-41058__0001.0.pdf?mcid=tGE4TAMA
WATTS CHOPPING: Hires Young Wooldridge as Bankruptcy Counsel
------------------------------------------------------------
Watts Chopping, Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of California to hire the Law Offices of
Young Wooldridge as counsel.
The firm's services include:
a. consulting with the Debtor about its financial situation,
its achievable goals and the efficacy of various forms of
bankruptcy as a means to achieve its goals;
b. preparing documents for the bankruptcy case;
c. advising the Debtor about its duties as
debtor-in-possession;
d. helping the Debtor formulate a Plan of Reorganization,
drafting the Plan, and prosecuting legal proceedings to seek
confirmation of the Plan; and
e. preparing and prosecuting pleadings.
The firm received a retainer in the amount of $25,000.
Leonard Welsh, Esq., a partner at the Law Offices of Young
Wooldridge, disclosed in a court filing that his firm is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Leonard K. Welsh, Esq.
LAW OFFICES OF YOUNG WOOLDRIDGE
1800 30th Street, Fourth Floor
Bakersfield, CA 93301
Tel: (661) 328-5328
Fax: (661) 760-9900
Email: lwelsh@youngwooldridge.com
About Watts Chopping
Watts Chopping operates an agricultural equipment business with
significant holdings in harvesting and farming equipment.
Watts Chopping sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Cal. Case No. 25-10505) on February
21, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Jennifer E. Niemann handles the case.
The Debtor is represented by Leonard K. Welsh, Esq. at Law Offices
Of Young Wooldridge.
XEROX HOLDINGS: S&P Affirms 'B+' ICR on New Financing Facilities
----------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on Xerox
Holdings Corp. and its issue-level ratings of 'BB' on its existing
first-lien term loan (expected to be upsized at transaction close)
and 'B+' on its senior unsecured notes (on CreditWatch with
negative implications, where S&P placed it on Jan. 3, 2025). S&P
also assigned ratings of 'BB' to the new first-lien notes, 'B+' to
the new second-lien notes, and 'B-' to the new senior unsecured
payment-in-kind (PIK) toggle notes. S&P expects to resolve the
CreditWatch and lower the ratings on the existing senior unsecured
notes by one notch at transaction close.
The negative outlook reflects the execution risks involved with
Xerox's transformation program and the acquisition and integration
of Lexmark, especially when it comes to returning to long-term
organic revenue growth and significant core FOCF.
S&P said, "While the Lexmark acquisition should improve Xerox's
print business and credit metrics, we expect continued weak core
FOCF over the next 12 months. Lexmark will increase Xerox's
exposure to the better-performing A4 color print segment,
especially the A4 color laser, which International Data Corp.
expects to grow at a 3.3% compound annual growth rate over
2023-2028 in the U.S. It also increases the company's managed print
and document services market share, bolsters its channel partner
relationships and Asia-Pacific presence, and provides in-house
manufacturing options for A4 and certain A3 equipment. Furthermore,
we expect it to improve Xerox's S&P Global Ratings' adjusted EBITDA
margins about 2.5 percentage points to about 11% on a pro forma
basis in 2025 before cost synergies. We therefore expect the
acquisition to be a deleveraging transaction at close on a pro
forma basis.
"At the same time, we expect core FOCF to remain challenged in 2025
and that incremental FOCF contributions from Lexmark will be
initially modest. With greater pro forma cash interest expenses and
capital expenditures (capex), we believe core FOCF could reach 5%
of S&P Global Ratings' adjusted debt if Xerox successfully achieves
its planned cost synergies of over $200 million within two years
from close. It would also have to achieve this while completing the
rest of its Reinvention plan (now focused around go-to-market and
delivery productivity improvements) and potentially stabilizing
organic revenues. We believe significant execution risks remain
given the scope of the organizational changes and integration
activity and the secular headwinds in the A3 print market. Until
long-term revenues stabilize and core FOCF improves significantly,
we expect downward pressure will remain on the rating because we
believe Xerox would likely need further business reorganization.
"Our calculation of adjusted debt does not net available cash and
excludes gross debt assumed to be allocated to funding Xerox's
financing activities (about $1.75 billion as of Dec. 31, 2024). The
latter adjustment should decrease until 2027 as Xerox strategically
reduces its finance receivables portfolio to about $1 billion. We
assume the impact on leverage will be somewhat offset by a capital
allocation policy that prioritizes debt reduction using the
generated reported FOCF.
The negative outlook reflects the execution risks involved with
Xerox returning to long-term organic revenue growth and significant
core FOCF. This is due to the considerable shift in its operating
model while navigating a secularly challenged core A3 print
industry and integrating Lexmark. Business underperformance versus
S&P's expectations or challenges successfully integrating Lexmark
could lead to a downgrade within the next 12 months.
S&P could lower the rating if the company:
-- Cannot stabilize its organic revenue declines due to weakening
print industry demand, competitive pressures, or strategic
execution mishaps;
-- Cannot improve core FOCF to debt to above 5% on a sustained
basis. Core FOCF excludes the benefit from a decreasing finance
receivables portfolio due to the receivables funding agreement with
HPS Investment Partners or any other external finance receivable
monetization strategies; or
-- Adopts a more aggressive financial policy or cannot sustain
EBITDA margin improvements through cost cuts or pricing as it
implements the Reinvention plan, such that its S&P Global Ratings'
adjusted leverage stays above 5x. This could include using cash
(including from finance receivables) for share repurchases or
acquisitions rather than debt reduction.
S&P would revise its outlook to stable if:
-- Successful execution of the Reinvention program and the
acquisition and integration of Lexmark helps stabilize long-term
reported revenues. This could be due to A4 color and IT and digital
service revenue contributions offsetting declining A3 print
revenues;
-- Leverage decreases toward 4.5x with Xerox prioritizing debt
repayments in its capital allocation policy rather than shareholder
distributions or large acquisitions; and
-- The company maintains significant positive core FOCF above 5%
of S&P Global Ratings' adjusted debt.
XYZ HOME: Gets Final OK to Use Cash Collateral
----------------------------------------------
XYZ Home Buyers, LLC received final approval from the U.S.
Bankruptcy Court for the Middle District of Georgia to use cash
collateral.
The company requires the use of cash collateral to pay the expenses
set forth in its monthly budget.
As protection, Horizon Trust Company Custodian FBO Molly Young IRA
and the other creditors identified in the final order will be
granted replacement liens on XYZ's assets, with the same validity
and priority as their pre-bankruptcy liens.
Creditors Toorak Capital Partners, LLC and U.S. Bank, N.A. have
until April 15 to seek modifications of the final order or object
to cash collateral use.
XYZ has the right to use the cash collateral, subject to the terms
of the final order, through confirmation of its Chapter 11 plan or
until its Chapter 11 case is converted or dismissed, whichever
comes first.
About XYZ Home Buyers
XYZ Home Buyers, LLC manages multiple residential rental
properties.
XYZ Home Buyers filed Chapter 11 petition (Bankr. M.D. Ga. Case No.
25-40081) on February 7, 2025, listing up to $500,000 in both
assets and liabilities. James Bell, chief restructuring officer of
XYZ Home Buyers, signed the petition.
Judge John T. Laney, III oversees the case.
The Debtor is represented by:
Thomas McClendon, Esq.
Jones & Walden LLC
Tel: 404-564-9300
Email: tmcclendon@joneswalden.com
YELLOW CORP: Reaches Provisional Bankruptcy Exit Deal w/ Creditors
------------------------------------------------------------------
James Nani of Bloomberg Law reports that Yellow reported that it
has reached an agreement with most of its largest unsecured
creditors on a joint plan to resolve its contentious bankruptcy,
though its largest shareholder has yet to offer support.
A bankruptcy plan incorporating a settlement with a broad group of
unsecured creditors could be filed by the end of the week, Yellow
bankruptcy attorney Allyson B. Smith of Kirkland & Ellis LLP said
Wednesday, March 26, 2025, during a hearing in the U.S. Bankruptcy
Court for the District of Delaware.
About Yellow Corporation
Yellow Corporation -- www.myyellow.com -- operates logistics and
less-than-truckload (LTL) networks in North America, providing
customers with regional, national, and international shipping
services throughout. Yellow's principal office is in Nashville,
Tenn., and is the holding company for a portfolio of LTL brands
including Holland, New Penn, Reddaway, and YRC Freight, as well as
the logistics company Yellow Logistics.
Yellow Corporation and 23 affiliates concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before
the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow Corp. had
$2,152,200,000 in total assets against $2,588,800,000 in total
liabilities. The petitions were signed by Matthew A. Doheny as
chief restructuring officer.
The Debtors tapped Kirkland & Ellis LLP as restructuring counsel;
Pachulski Stang Ziehl & Jones LLP as Delaware local counsel;
Kasowitz, Benson and Torres LLP as special litigation counsel;
Goodmans LLP as special Canadian counsel; Ducera Partners LLC as
investment banker; and Alvarez and Marsal as financial advisor.Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Milbank LLP serves as counsel to certain investment funds and
accounts managed by affiliates of Apollo Capital Management, L.P.
White & Case LLP serves as counsel to Beal Bank USA.
Arnold & Porter Kaye Scholer LLP serves as counsel to the United
States Department of the Treasury.
On August 16, 2023, the United States Trustee for Region 3
appointed an official committee of unsecured creditors in these
Chapter 11 cases. The committee tapped Akin Gump Strauss Hauer &
Feld LLP and Benesch, Friedlander, Coplan & Aronoff LLP as counsel;
Miller Buckfire as investment banker; and Huron Consulting Services
LLC as financial advisor.
ZEVRA THERAPEUTICS: Posts $105.5 Million Net Loss in 2024
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Zevra Therapeutics, Inc. filed its Annual Report on Form 10-K with
the U.S. Securities and Exchange Commission, reporting a net loss
of $105.5 million for the year ended December 31, 2024, compared to
a net loss of $46.0 million for the year ended December 31, 2023.
Revenue for the year ended December 31, 2024, was $23.6 million, a
decrease of approximately $3.8 million compared to revenue of $27.5
million for the year ended December 31, 2023.
As of Dec. 31, 2024, the Company had $178.1 million in total
assets, $138.5 million in total liabilities, and $39.7 million in
total stockholders' equity.
"2024 was a transformational year for Zevra. We emerged as a
commercial stage company and are executing on the opportunity to
positively impact the lives of people living with rare diseases,"
said Neil F. McFarlane, Zevra's President and Chief Executive
Officer. "We are starting 2025 from a position of strength. Our
priorities are guided by Zevra's strategic plan, unveiled during
our third quarter call and categorized under four actionable
pillars: commercial excellence, pipeline and innovation, talent and
culture, and corporate foundation."
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/2tejn8sm
About Zevra Therapeutics
Celebration, Fla.-based Zevra Therapeutics, Inc. is a company
focused on developing therapies for rare diseases with limited or
no treatment options. The company aims to create transformational
therapies by combining science, data, and patient needs. Utilizing
unique, data-driven development and commercialization strategies,
Zevra Therapeutics overcomes complex drug development challenges to
provide new therapies for the rare disease community.
* * *
This concludes the Troubled Company Reporter's coverage of Zevra
Therapeutics until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
[] BOOK REVIEW: Bailout: An Insider's Account of Bank Failures
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Bailout: An Insider's Account of Bank Failures and Rescues
Author: Irvine H. Sprague
Publisher: Beard Books
Soft cover: 321 pages
List Price: $34.95
Order your personal copy at
https://ecommerce.beardbooks.com/beardbooks/bailout.html
No one is more qualified to write a work on this subject of bank
bailouts. Holding the positions of chairman or director of the
Federal Deposit Insurance Corporation (FDIC) during the 1970s and
1980s, one of Sprague's most important tasks was to close down
banks that were failing before they could cause wider damage. The
decades of the 1970s and '80s were times of high interest rates for
both depositors and borrowers. Rates for depositors at many banks
approached 10%, with rates for loans higher than that. The fierce
competition in the banking industry to offer the highest rates to
attract and keep depositors caused severe financial stress to an
unusually high number of banks. Having to pay out so much in
interest to stay competitive without taking in much greater
deposits was straining the cash and other assets of many banks. The
unprecedented high interest rates also had the effect of reducing
the number of loans banks were giving out. There were not so many
borrowers willing to take on loans with the high interest rates.
With the disruptions in their interrelated deposits and loans, many
banks began to engage in unprecedented and unfamiliar financial
activities, including investing in risky business ventures. As
well as having harmful effects on local economies, the widely
reported troubles of a number of well-known and well-respected
banks were having a harmful effect on the public's confidence in
the entire banking industry.
Sprague along with other government and private-sector leaders in
the banking and financial field realized the problems with banks of
all sizes in all parts of the country had to be dealt with
decisively. Action had to be taken to restore public confidence,
as well as prevent widespread and long-lasting damage to the U.S.
economy. Sprague's task was one of damage control largely on the
blind. The banking industry, the financial community, and the
government and the public had never faced such a large number of
bank failures at one time. The Home Loan Bank Board for the
savings-and-loans associations had allowed these institutions to
treat goodwill as an asset in an effort to shore up their
deteriorating financial situations with disastrous results for
their depositors and U.S. taxpayers. Such a desperate stratagem
only made the problems with the savings-and-loans worse. The banks
covered by the FDIC headed by Sprague were different from these
institutions. But the problems with their basic business of
deposits and loans were more or less the same. And the cause of the
problem was precisely the same: the high interest rates.
Faced with so many bank failures, Sprague and the government
officials, Congresspersons, and leaders he worked with realized
they could not deal effectively with every bank failure. So one of
their first tasks was to devise criteria for which failures they
would deal with. Their criteria formed what came to be known as
the "essentiality doctrine." This was crucial for guidance in
dealing with the banking crisis, as well as for explanation and
justification to the public for the government agency's decisions
and actions. Sprague's tale is mainly a "chronicle [of] the
evolution of the essentiality doctrine, which derives from the
statutory authority for bank bailouts." The doctrine was first used
in the bailout of the small Unity Bank of Boston and refined in the
bailouts of the Bank of the Commonwealth and First Pennsylvania
Bank. It then came into use for the multi-billion dollar bailout
of the Continental Illinois National Bank and Trust Company in the
early 1980s. Continental's failure came about almost overnight by
the "lightening-fast removal of large deposits from around the
world by electronic transfer." This was another of the
unprecedented causes for the bank failures Sprague had to deal with
in the new, high-interest, world of banking in the '70s and '80s.
The main part of the book is how the essentiality doctrine was
applied in the case of each of these four banks, with the
especially high-stakes bailout of Continental having a section of
its own.
Although stability and reliability have returned to the banking
industry with the return of modest and low interest rates in
following decades, Sprague's recounting of the momentous activities
for damage control of bank failures for whatever reasons still
holds lessons for today. For bank failures inevitably occur in any
economic conditions; and in dealing with these promptly and
effectively in the ways pioneered by Sprague, the unfavorable
economic effects will be contained, and public confidence in the
banking system maintained.
As chairman or director of the FDIC for more than 11 years, Irvine
H. Sprague (1921-2004) handled 374 bank failures. He was a special
assistant to President Johnson, and has worked on economic issues
with other high government officials.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
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public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
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assets. A company may establish reserves on its balance sheet for
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equity securities trade in public market are determined by more
than a balance sheet solvency test.
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liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
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then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2025. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
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*** End of Transmission ***