/raid1/www/Hosts/bankrupt/TCR_Public/250331.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, March 31, 2025, Vol. 29, No. 89
Headlines
125 MIDWOOD STREET: Seeks to Hire R New York as Real Estate Broker
13 ADAMS STREET: Gets OK to Use Cash Collateral Until April 15
210 8TH ST: Case Summary & One Unsecured Creditor
23ANDME HOLDING: Bankruptcy Court Approves Key First-Day Motions
23ANDME HOLDING: DeleteMe Helps Users Erase Data Amid Bankruptcy
23ANDME HOLDING: J. Selsavage Named Interim CEO, President
23ANDME HOLDING: Names M. Kvarda as Chief Restructuring Officer
23ANDME HOLDING: Says Chapter 11 Privacy Ombudsman Not Needed
23ANDME HOLDING: Settles Cyber Incident Suits for $37.5MM
23ANDME HOLDING: T. Walper Appointed as Non-Employee Director
268 78TH STREET: Voluntary Chapter 11 Case Summary
303 HIGHLINE: Seeks to Hire FlatterySalomon LLC as Accountant
437 88 LLC: Hires Goldberg Weprin Finkel Goldstein as Counsel
4504 15 AND 1476: Seeks Chapter 11 Bankruptcy in New York
467 CENTRAL: Case Summary & 10 Unsecured Creditors
514 THAT WAY: Seeks to Hire Haselden Farrow as Legal Counsel
560 SEVENTH AVENUE: Court Okays Chapter 11 Plan
58 OCEAN AVENUE: Claims to be Paid From Asset Sale Proceeds
75 ESSEX CORNER: Seeks Chapter 11 Bankruptcy in New York
75 RI LLC: Seeks Chapter 11 Bankruptcy in the District of Columbia
76 M INC: Seeks to Hire Long & Foster Real Estate as Broker
80G DEVELOPMENT: Seeks to Tap Douglas Moliterno as Legal Counsel
81 STOCKHOLM: Case Summary & Eight Unsecured Creditors
903 LAKE: Hires Real Estate Store LLC as Real Estate Agent
A.R.M. BAGELS: Seeks to Tap Penachio Malara as Bankruptcy Counsel
ACCO BRANDS: Egan-Jones Retains B+ Senior Unsecured Ratings
ACCOUNTING LAB: Seeks Chapter 11 Bankruptcy in Florida
ACTION ENVIRONMENTAL: $150MM Add-on No Impact on Moody's 'B2' CFR
ADAPTHEALTH LLC: Moody's Affirms 'Ba3' CFR & Alters Outlook to Pos.
ADVANTACLEAN OF METRO: Hires Sternberg Naccari & White as Counsel
AEMETIS INC: Registers 2.1M Additional Shares Under 2019 Stock Plan
AIXIN LIFE: To Restate 2021 Financial Statements
ALC ENGINEERED: Seeks Approval to Tap WM Law as Bankruptcy Counsel
ALCHEMY 365: Gets Final OK to Use Cash Collateral
ALPINEBAY INC: Hires Arxis Financial as Business Valuation Expert
AMERICAN CANNABIS: Joseph Cleghorn Steps in as Interim President
AMERICAN OPEN: Taps Catanzarite Law as Special Litigation Counsel
AMERICAN TIRE: Gets Chapter 11 Plan Ok After Sale to Creditors
ARCHDIOCESE OF SAN FRANCISCO: Court Orders Release of Abuse Data
ARCLINE FM: Moody's Hikes CFR to 'B2', Outlook Stable
AZURE DEVELOPMENT: To Sell Puerto Rico Property to Punta Banderas
AZZUR GROUP: Gets Court Okay for at Least $1.3MM Exec. Bonuses
B. RILEY FINANCIAL: BRS Separates in Carve-Out Transaction
B.L.H.G. GROUP: Gets Interim OK to Use Cash Collateral
BARRETTS MINERALS: Mediator Attributes Impasse to Committee
BARROW SHAVER: Seeks to Tap Miller Fair Henry as Litigation Counsel
BEACON ROOFING: QXO Transaction No Impact on Moody's 'Ba2' CFR
BEAZER HOMES: Egan-Jones Retains BB- Senior Unsecured Ratings
BECKER INC: Court Extends Cash Collateral Access to May 7
BEELINE HOLDING: Name Change, 1-for-10 Reverse Split Effective
BENSON HILL: Court Approves First-Day Motions in Bankruptcy Case
BEYOND AIR: Ron Bentsur Steps Down From Board
BEYOND MANAGEMENT: Hires Hector Eduardo Pedrosa Luna as Counsel
BGI SEWELL: Taps Obermayer Rebmann Maxwell & Hippel as Attorney
BISHOP OF OAKLAND: Hires Hilco Real Estate as Consultant
BLH TOPCO: Case Summary & 30 Largest Unsecured Creditors
BLUE APPLE: Seeks to Hire Ken Rosen Advisors as Bankruptcy Counsel
BOY SCOUTS: Claimants' Appeal to Fix Chapter 11 Opt-In Error Denied
BROOKFIELD PROPERTY: S&P Downgrades ICR to 'BB-', Outlook Stable
CALIFORNIA PREMIER: Hires Krycler Ervin Taubman as Accountant
CALIFORNIA PROUD: Seeks Subchapter V Bankruptcy in North Carolina
CANADIAN UTILITIES: Egan-Jones Retains BB Senior Unsecured Ratings
CAPSTONE COMPANIES: Plans CRM System With Coppermine Under MOU
CAREPOINT HEALTH: Mediator Deems Ch. 11 Confirmation Deal Futile
CARNIVAL CORP: Egan-Jones Hikes Senior Unsecured Ratings to B-
CARROLLCLEAN LLC: Seeks to Hire Plant & Machinery as Auctioneer
CDF INC: Seeks Court Approval to Hire McGraw Realty as Realtor
CEC ENTERTAINMENT: Moody's Rates New $660MM Sr. Secured Notes 'B3'
CENTER FOR SPECIAL: Committee Taps Gilbert Garcia Group as Counsel
CENTURY ALUMINUM: Moody's Ups CFR to 'B2', Outlook Remains Positive
CES KIMBERLINA: Hires Kelley Kaplan & Eller as Legal Counsel
CES KIMBERLINA: Seeks to Tap Fierstadt Law Group as Special Counsel
CHART INDUSTRIES: Egan-Jones Retains BB Senior Unsecured Ratings
CHART INDUSTRIES: Moody's Ups CFR to Ba3, Outlook Remains Positive
CHUNGA-JINGA LLC: Seeks Chapter 11 Bankruptcy in New York
CIBUS INC: Files Registration Statement for 4MM Shares
CIMG INC: Zhongyan Signs Deal to Acquire 51% of Shanghai Huomao
CINEMA MANAGEMENT: Trustee Taps Matthew Borror as ERISA Counsel
CIVITAS RESOURCES: Moody's Alters Outlook on 'Ba3' CFR to Stable
CIVITAS RESOURCES: S&P Affirms 'BB-' ICR, Outlook Positive
CLOUTER CREEK: Seeks to Hire French Law Firm as Special Counsel
COLIANT SOLUTIONS: Hires Rountree Leitman Klein as Counsel
COMTECH TELECOMMUNICATIONS: Egan-Jones Retains B- Unsec. Ratings
CONN'S INC: Creditors Oppose $4MM Award to Lender
CONNEXA SPORTS: Reports $156K Net Income at Jan. 2025
CORECIVIC INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
CORSA COAL: Gets Court Okay for $23.5MM Chapter 11 Asset Sale
CP ATLAS: Moody's Rates New Sr. Secured First Lien Term Loan 'B2'
CRACKED EGGERY: Unsecureds Will Get 5.7% of Claims in Plan
CRC RESTAURANT: Amends Fundkite Secured Claim Pay
CRYPTO COMPANY: Adds David Natan, Lene Martin to Leadership Team
CRYPTO COMPANY: Raises Promissory Note to $252.9K in 4th Amendment
CRYPTO MARKET: Seeks Chapter 11 Bankruptcy in Florida
CUTERA INC: Unsecureds be Paid in Full or be Reinstated in Plan
CYTOPHIL INC: Seeks Approval to Tap JDP Consulting as Accountant
DECO GROUP: Taps Lane Law Firm PLLC as Bankruptcy Counsel
DEEP SOUTH: Gets Final OK to Use Cash Collateral
DEREK L. MARTIN DMD: Gets Extension to Access Cash Collateral
DIAMOND COMIC: Alliance Wins Bid for Key Assets in Bankruptcy Sale
DOUBLE HELIX: Hires Carmody MacDonald as Bankruptcy Counsel
DOVGAL EXPRESS: Court Extends Cash Collateral Access to April 19
DRAKSIN PROPERTIES: To Sell New York Property to Richard Etienne
DRIVEHUB AUTO: Court Extends Cash Collateral Access to May 13
DT&T LOGISTICS: Court Extends Cash Collateral Access to April 25
DUN & BRADSTREET: Fitch Puts 'BB-' LongTerm IDR on Watch Negative
DUNBAR PROPERTIES: Seeks to Hire Kasen & Kasen as Legal Counsel
DW TRUST: Court Denies Bid to Use Cash Collateral
DYNAMIC AEROSTRUCTURES: Hires Chipman Brown Cicero as Co-Counsel
DYNAMIC AEROSTRUCTURES: Hires Configure as Investment Banker
DYNAMIC AEROSTRUCTURES: Seeks to Hire Ropes & Gray LLP as Attorney
DYNAMIC AEROSTRUCTURES: Seeks to Tap Ordinary Course Professionals
DYNAMIC AEROSTRUCTURES: Taps Berkeley as Financial Advisor
DYNAMIC AEROSTRUCTURES: Taps Verita Global as Admin. Advisor
EASTERN COLORADO: To Sell New Mexico Property to Michael Weiland
ECLIPSE FARMINGDALE: Unsecureds Will Get 100% of Claims in Plan
ECO-PRESERVATION SERVICES: Trustee Taps Long as Special Counsel
EDUCATIONAL DEVELOPMENT: Taps Keen-Summit for Tulsa HQ Sale
EISNER BROS: Seek Chapter 11 Bankruptcy in New York
ELETSON HOLDINGS: New Owners, Levona Want Atty. Removal Delayed
ELITE SCHOOL: Seeks Approval to Hire Magnum Advisors as Accountant
EMERALD HOLDING: Moody's Assigns 'B2' CFR, Outlook Stable
EMERGENT BIOSOLUTIONS: Closes Sale of Baltimore-Bayview Site
EMPLOYBRIDGE HOLDING: S&P Upgrades ICR to 'CCC+', Outlook Negative
ENGINE 22: Voluntary Chapter 11 Case Summary
ENTECCO FILTER: Court Extends Cash Collateral Access to April 18
ENVIROSCENT INC: Seeks Cash Collateral Access
EXACTECH INC: Gets Court Okay to Solicit Chapter 11 Plan Votes
EXPRESS MOBILE: Seeks to Hire Smith Nale & Company as Accountant
FINANCE OF AMERICA: Reports $35.7 Million Net Profit in 2024
FLORIDA MAGICAL: Hires Latham Luna Eden & Beaudine LLP as Counsel
FLY7 INSTALLATIONS: Gets Interim OK to Use Cash Collateral
FRANCHISE GROUP: Hires Kirkland & Ellis as Bankruptcy Counsel
FTX TRADING: Prepares $11.4B Cash for Distribution to Creditors
FULLER'S SERVICE: Gets Extension to Access Cash Collateral
GATES CORPORATION: Moody's Assigns Ba3 CFR & Alters Outlook to Pos.
GATEWAY AT WYNWOOD: Seeks to Sell Miami Properties at Auction
GO LAB: Files Chapter 11, Has Interim Access to $10MM Financing
GOLD MANAGEMENT: Case Summary & Eight Unsecured Creditors
GREENBRIER CO: Egan-Jones Retains BB- Senior Unsecured Ratings
GREENWAVE TECHNOLOGY: Gets Nasdaq Extension to Regain Compliance
GREENWICH INVESTMENT: Trustee Gets OK to Tap Cohen Dowd as Counsel
HALO ESTATES: Court OKs Deal on Cash Collateral Access
HAYDALE CERAMIC: Taps Rountree Leitman Klein & Geer as Counsel
HERITAGE HOTELS: Taps Weinstein Radcliff Pipkin as Special Counsel
HERMS LUMBER: Seeks to Tap Marshack Hays Wood as General Counsel
HIGH WIRE: Cancels $10-Mil. Equity Line of Credit to Avoid Dilution
HIGHRISE ELECTRICAL: Seeks Subchapter V Bankruptcy in Texas
HMC PARTNERS: Seeks to Hire Larson & Zirzow as Bankruptcy Counsel
HUDSON'S BAY: Union, CLC Slam Bonuses as Workers Denied Severance
HURON UNIVERSITY: DBRS Cuts Issuer Rating to BB(high)
HUTCHINSON REGIONAL: Moody's Revises Outlook to Stable
IFR FOUNDATION: Gets Final OK to Use Cash Collateral
ILPEA PARENT: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable
IM3NY LLC: Seeks Approval to Hire Ordinary Course Professionals
INFINERA CORP: Tudor Investment Disposes of Equity Stake
INKWELL PRODUCTIONS: Continued Operations to Fund Plan Payments
INNOVEREN SCIENTIFIC: H. Schuyler, P. Farrell Hold 7.7% Equity
INOTIV INC: Registers 2.25MM Additional Shares Under Incentive Plan
INOTIV INC: Shareholders OK All Proposals at Annual Meeting
INTEGRATED CARE: Seeks to Hire Cunningham Law as Special Counsel
INTELLIGENT PROTECTION: Reports $8.4MM Net Loss in 2024
INTELLIGENT PROTECTION: Wins $65.7MM Verdict in IP Suit vs. Cisco
IQSTEL INC: Signs MOU to Sell 75% Stake in itsBchain for $1MM
IRONWOOD GROUP: Case Summary & Four Unsecured Creditors
ISLAND VIEW: Gets Court OK to Use Cash Collateral Until May 6
JENCAR TRUCKING: Seeks Chapter 11 Bankruptcy in New Jersey
JER INVESTORS: Court Confirms Chapter 11 Plan After Creditors Deal
JILL'S OFFICE: Case Summary & 20 Largest Unsecured Creditors
JMKA LLC: Court Extends Cash Collateral Access to April 28
JOE'S SPORTS: Hires Essex Richards PA as Bankruptcy Counsel
K & M AMUSEMENT: Court Extends Cash Collateral Access to May 8
KATIE KAHANOVITZ: Hires Kelley Kaplan & Eller as General Counsel
KLX ENERGY: Swings to $53MM Net Loss in 2024; Revenue Down 20.2%
KOGA LLC: BankPlus Seeks to Prohibit Cash Collateral Access
KYTTO ENTERPRISE: Seeks Chapter 11 Bankruptcy in Puerto Rico
LAMAR ADVERTISING: Egan-Jones Retains BB- Senior Unsecured Ratings
LANDMARK HOLDINGS: Gets OK to Tap American Legal as Claims Agent
LFR31 VENTURES: Seeks Cash Collateral Access
LI-CYCLE HOLDINGS: Glencore Entities Hold 66.7% Equity Stake
LIFT SOCIETY: Seeks to Hire RHM Law LLP as Legal Counsel
LILLY INDUSTRIES: Court Extends Cash Collateral Access to June 3
LOCAL EATERIES: Seeks $200,000 DIP Loan From Chris Roach
LOCAL EATERIES: Taps Dunham Hildebrand Payne Waldron as Counsel
LV BENZENE: Seeks to Hire Larson & Zirzow as Bankruptcy Counsel
MACY'S INC: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable
MADISON IAQ: Moody's Affirms B2 CFR & Rates New First Lien Debt B1
MANA GROUP: Seeks Chapter 11 Bankruptcy in Texas
MANITOWOC CO: Egan-Jones Retains BB- Senior Unsecured Ratings
MARKUS CORP: Court Extends Cash Collateral Access to April 30
MARRIOTT INT'L: Egan-Jones Retains BB+ Sr. Unsec. Ratings
MARRIOTT VACATIONS: S&P Lowers Sr. Unsecured Notes Rating to 'B'
MASS POWER: Seeks to Hire John Desmond as Bankruptcy Counsel
MATH & SCIENCE: S&P Lowers Debt Rating to 'BB', Outlook Negative
MERMAID BIDCO: Moody's Affirms 'B2' CFR, Outlook Remains Stable
MILAN SAI: Court Extends Cash Collateral Access to April 22
MITCHELL ROCK: Seeks to Hire Spain & Gillon as Bankruptcy Counsel
MITNICK PARENT: Fitch Alters Outlook on 'B' LongTerm IDR to Neg.
MLN US: Seeks Court Approval to Hire KPMG LLP as Tax Consultant
MODIVCARE INC: Stockholders OK Coliseum Transactions
MOHEGAN TRIBAL: Fitch Affirms 'B' IDR, Outlook Stable
MOM CA: Seeks $5MM Bankruptcy Loan From Specialty DIP
MONDEE HOLDINGS: Lenders to Return Bankrupt Company to Founder
MOUNTAIN SPORTS: Seeks to Hire Epiq as Solicitation Advisor
MOWBRAY WATERMAN: Court OKs Deal on Cash Collateral Access
MOWBRAY WATERMAN: Hires Elkins Kalt Weintraub as Counsel
NEPHROS INC: Reports $74K Net Income for 2024
NEW JERSEY: Hires Elementary Business as Accounting Consultant
NEWELL BRANDS: Egan-Jones Retains B+ Senior Unsecured Ratings
NGL ENERGY: S&P Affirms 'B' Issuer Credit Rating on Asset Sale Plan
NIKOLA CORP: Plans to Delist From Nasdaq, Deregister With SEC
NORTHERN OIL: Moody's Raises CFR to Ba3 & Alters Outlook to Stable
NRG ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings
NUTRACAP HOLDINGS: Committee Hires Jones & Walden as Counsel
OAKS SENIOR: Seeks to Hire Brunetti Rougeau LLP as Counsel
OCEAN BAY HOLDINGS: Seeks to Hire Brian W. Hofmeister as Counsel
OFFICE PROPERTIES: Inks $100M ATM Sales Agreement With Clear Street
OMEGA THERAPEUTICS: Hires Morris Nichols Arsht as Legal Counsel
OPE INMAR: Moody's Assigns 'B3' CFR, Outlook Positive
OREGON TOOL: Moody's Affirms 'Caa3' CFR & Alters Outlook to Stable
ORLANDO MEDICAL: Updates Equity Interest Claim Details
OTB HOLDING: Pappas Dining Empire Makes Bankruptcy Bid
OUR FAMILY DIRECT: Gets OK to Use Cash Collateral Until May 9
OWENS & MINOR: Moody's Affirms Ba3 CFR & Rates 1st Lien Loans Ba3
PALLET CONSULTANTS: Brian Hofmeister Named Subchapter V Trustee
PAN AM DENTAL: Seeks to Hire H. Anthony Hervol as Legal Counsel
PARADIGM PARENT: S&P Assigns 'B' ICR, Outlook Stable
PARKLAND CORP: S&P Alters Outlook to Negative, Affirms 'BB' ICR
PAVMED INC: Tasso Partners Reports 2.57M Shares, Prefunded Warrant
PERFORMANCE MOBILE: Seeks to Hire Allen Vellone Wolf as Counsel
PHILLIPS TOTAL: Seeks Chapter 11 Bankruptcy in Wisconsin
PHOENIX EXTEND-A-Suites: Hires R.O.I. Properties as Broker
PINEAPPLE PROPERTIES: Aaron Cohen Named Subchapter V Trustee
PPS 77 LLC: Seeks Chapter 11 Bankruptcy in New York
PRESBYTERIAN HOMES: Hires Christian Care as Services Provider
PROGRESS SOFTWARE: Egan-Jones Cuts Sr. Unsecured Ratings to BB+
PURDUE PHARMA: Lawsuit Injunction Extended Prior to Plan Hearings
R.A.R.E. CORP: Court Extends Cash Collateral Access to April 17
RABAH LLC: Court OKs Dallas Property Sale to Jacqueline Nortman
RADIANT ONE: Hires Bradford Law Offices as Bankruptcy Counsel
RANGE RESOURCES: Egan-Jones Retains BB Senior Unsecured Ratings
REGO PAYMENT: Extends Maturity of $20MM Credit Line to March 2026
REMEMBER ME: Seeks to Hire Solinity Services as Consultant
RHDM OIL: Seeks to Hire Bisom Law Group as Bankruptcy Counsel
RMLJ HOLDINGS: Hires Realty ONE Group 20 as Real Estate Broker
ROYSTONE ON QUEEN: Court Extends Use of Cash Collateral to May 30
SAN BENITO: Appeals Court Upholds Hazel Hawkins' Chapter 9 Ruling
SANUWAVE HEALTH: Ian Miller Discloses Ownership of 18,459 Shares
SAS GROUP: Seeks Chapter 11 Bankruptcy in California
SBLA INC: Hires Shraiberg Page P.A. as Co-Counsel
SEDALIA AESTHETICS: Hires Johnson Tax Service as Accountant
SERVANT GROUP: Seeks Subchapter V Bankruptcy in Arizona
SHERWOOD HOSPITALITY: Taps Sussman Shank as Bankruptcy Counsel
SHINE SOLAR: Seeks to Hire Bond Law Office as Bankruptcy Counsel
SHREE AMIRTAYA: Hires Joseph J. D'Agostino Jr. as Legal Counsel
SHRIJEE LLC: Seeks Chapter 11 Bankruptcy in Wisconsin
SHUBREW LLC: Hires Thompson Law Group as Bankruptcy Counsel
SILVER LINING: Seeks to Hire Larson & Zirzow as Bankruptcy Counsel
SINCLAIR INC: L. Rutishauser to Retire as EVP, CFO
SINTX TECHNOLOGIES: Eric Olson Named Board Chair
SOAP BOX: Gets OK to Use Cash Collateral Until May 1
SORRENTO THERAPEUTICS: Court Rejects Shareholders' Discovery Bid
SOUTHERN AUTO: Seeks to Hire Buckmiller & Frost as Attorney
SOUTHERN CUTTERS: Seeks to Hire Bush Law Firm LLC as Legal Counsel
SOUTHFIELD VENTURES: Sec. 341(a) Meeting of Creditors on April 29
SPD 2010: Seeks to Hire Korenblit & Vasserman as Special Counsel
SS&C TECHNOLOGIES: Egan-Jones Retains BB Senior Unsecured Ratings
STARWOOD PROPERTY: Moody's Rates New $400MM Unsecured Notes 'Ba3'
STEWARD HEALTH: Fights w/ Creditors Over $60MM Compensation Plan
STICKY'S HOLDINGS: Wants to Secure Ch. 11 Victory Against the Odds
STOLI GROUP: Court OKs Modifications to Final Cash Collateral Order
SUNATION ENERGY: Repays and Terminates Multiple Loan Agreements
SUNNOVA ENERGY: Enacts Tax Plan to Protect Shareholder Value
SUNSHINE PEDIATRICS: Hires Parker Schwartz as Bankruptcy Counsel
SURVWEST LLC: Trustee Hires Newpoint Advisors as Accountant
TD&H INC: Hearing on Bid to Use Cash Collateral Set for April 1
TEAM MUV: Seeks to Hire Black Helterline as Bankruptcy Counsel
TELEPHONE AND DATA: Egan-Jones Retains B+ Senior Unsecured Ratings
TERADATA CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
THORNCO HOSPITALITY: Unsecureds to Get $10K per Month for 60 Months
TINKER REAL ESTATE: Gets OK to Hire Maximum One Realty as Broker
TINY FROG: Seeks Chapter 11 Bankruptcy in North Carolina
TOOLIPIS CREATIVE: Unsecureds to Get 100 Cents on Dollar in Plan
TOP ACES: DBRS Gives BB(low) Issuer Rating, Trend Stable
TREESAP FARMS: Secures $51MM Chapter 11 Loan Final Approval
TRINITY PLACE: Reports $5.6MM Net Income in 2024
TRIPLETT FUNERAL: Case Summary & Four Unsecured Creditors
TRISTATE DEVELOPMENT: Seeks Chapter 11 Bankruptcy in Maryland
TROPICANA BRANDS: Nears $400MM Debt Restructuring Deal
TUTOR PERINI: S&P Raises Senior Unsecured Notes Rating to 'B'
TWIN FALLS: Committee Hires Ballard Spahr LLP as Counsel
VERIFONE SYSTEMS: Fitch Assigns 'B-' LongTerm IDR, Outlook Stable
VIA MIZNER: Seeks to Hire CBRE Inc. as Real Estate Broker
VICTORY HOLDING: Seeks Chapter 11 Bankruptcy in New York
VIEWBIX INC: Implements 1-for-4 Reverse Stock Split
VILLAGE ROAD: Seeks to Tap Verita Global as Claims & Noticing Agent
VILLAGE ROADSHOW: Taps Young Conaway, Sheppard to Help w/ Ch. 11
VISALUS INC: Unsecured Creditors to Get Nothing in Plan
VS BUYER: Moody's Affirms 'B2' CFR & Alters Outlook to Positive
VUZIX CORP: Posts $74M Loss in 2024; Going Concern Doubt Alleviated
W.D. TOWNLEY: Seeks Chapter 11 Bankruptcy in Texas
WA3 PROPERTIES RENTON: Seeks Chapter 11 Bankruptcy in New York
WINDTREE THERAPEUTICS: Inks License Deal with Evofem Biosciences
WINDTREE THERAPEUTICS: Raises $250K Through Stock Sales
WORKDAY INC: Egan-Jones Retains BB+ Sr. Unsecured Ratings
WRESTLING COLLECTOR: Court Extends Cash Collateral Access to May 20
WST INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors
YANKE CONSTRUCTION: Seeks Chapter 11 Bankruptcy in Michigan
YOUR BATH: Gets Interim OK to Use Cash Collateral
YOUTHFUL SOLUTIONS: Gets Interim OK to Use Cash Collateral
ZIPS CAR WASH: Seeks to Hire Ordinary Course Professionals
ZW DATA: Subsidiary Acquires Rahula Digital Media Shares
[] CFP Board Proposes Rule Changes on Past Bankruptcies
[] Getzler Henrich's Krakora Named to Bankruptcy College Fellows
*********
125 MIDWOOD STREET: Seeks to Hire R New York as Real Estate Broker
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125 Midwood Street Partners LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to hire R New
York as its real estate broker.
R New York will sell the Debtor's property located at 125 Midwood
Street, Brooklyn, New York 11225.
The firm's services include:
(a) consulting with Debtor concerning the sale;
(b) investigating and conducting due diligence;
(c) advertising and marketing the Property; and
(d) performing any and all other services.
The commission will be paid at a rate of 4.5 percent of the sale
price.
As disclosed in the court filings, R New York is disinterested, as
that term is defined in 11 U.S.C. Sec. 101(14).
The firm can be reached through:
Robb Barr
R New York
641 Lexington Ave
New York, NY 10022
Tel: (212) 688-1000
About 125 Midwood Street Partners LLC
125 Midwood Street Partners LLC is the fee simple owner of the real
property located at 125 Midwood Street, Brooklyn, NY 11225 valued
at $2.41 million.
125 Midwood Street Partners LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-43803) on
September 12, 2024. In the petition filed by Yolanda Shivers, as
managing member, the Debtor reports total assets of $2,408,000 and
total liabilities of $1,415,412.
Honorable Bankruptcy Judge Elizabeth S. Stong handles the case.
The Debtor is represented by Nnenna Onua, Esq. at MICKINLEY ONUA &
ASSOCIATES.
13 ADAMS STREET: Gets OK to Use Cash Collateral Until April 15
--------------------------------------------------------------
13 Adams Street, LLC received interim approval from the US
Bankruptcy Court for the Southern District of New York to use cash
collateral.
The interim order authorized the company to use collateral until
April 15 or until a later time permitted by the court to pay the
expenses set forth in the budget, with a 10% variance allowed.
13 Adams Street projects total monthly operational expenses of
$5,200.
Northeast Bank, a secured lender, will be granted security interest
in and lien on all of the company's assets, including all proceeds
and profits thereof; and a superpriority administrative expense
claim in case of any diminution in value of its collateral.
As additional protection, Northeast Bank will continue to receive a
monthly payment of $4,000 until further order of the court. The
monthly payment started on Jan. 15.
A final hearing will be held on April 10.
About 13 Adams Street LLC
13 Adams Street, LLC filed Chapter 11 petition (Bankr. S.D. N.W.
Case No. 24-23096) on December 17, 2024, listing between $1 million
and $10 million in both assets and liabilities.
Judge Sean H. Lane oversees the case.
The Debtor is represented by
Anne J. Penachio, Esq.
Penachio Malara, LLP
Tel: 914-946-2889
Email: apenachio@pmlawllp.com
210 8TH ST: Case Summary & One Unsecured Creditor
-------------------------------------------------
Debtor: 210 8th St LLC
790 Sunrise Circle
Woodland Park, CO 80863
Business Description: 210 8th St LLC is a real estate debtor with
a single asset, as described in 11 U.S.C.
Section 101(51B). The Debtor holds full
ownership of the property situated at 210
8th St., Colorado Springs, CO 80905, which
is appraised at a market value of $1.4
million.
Chapter 11 Petition Date: March 28, 2025
Court: United States Bankruptcy Court
District of Colorado
Case No.: 25-11653
Judge: Hon. Michael E Romero
Debtor's Counsel: David J. Warner, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
2580 West Main Street, Suite 200
Littleton, CO 80120
Tel: 303-296-1999
E-mail: dwarner@wgwc-law.com
Total Assets: $1,455,000
Total Liabilities: $1,453,420
The petition was signed by Thomas Gearhart as managing member.
The Debtor has identified B:Side Capital, located at 3350 Brighton
Blvd., Suite 235, Denver, CO 80216, as its only unsecured creditor,
with a claim amount of $53,420.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/MV6XABA/210_8th_St_LLC__cobke-25-11653__0001.0.pdf?mcid=tGE4TAMA
23ANDME HOLDING: Bankruptcy Court Approves Key First-Day Motions
----------------------------------------------------------------
23andMe Holding Co., a leading human genetics and biotechnology
company, announced on March 26, 2025, that it has received
approvals from the U.S. Bankruptcy Court for the Eastern District
of Missouri for its "first day" motions related to 23andMe's
voluntary Chapter 11 petitions filed March 23, 2025, including
authorization to pay employee wages and benefits and compensate
certain vendors and suppliers in the ordinary course for goods and
services provided and to enter into the binding term sheet for a
$35 million debtor-in-possession financing facility from JMB
Capital Partners.
23andMe remains committed to its customers while it seeks to
implement an efficient Chapter 11 process that maximizes the value
for all of its stakeholders. As discussed in Court today, the
Company's existing consumer privacy policies remain in place, and
the Company has not changed how it manages or protects customer
data through any of the motions that were approved by the Court.
The Court authorized 23andMe to commence a process to sell
substantially all of its assets through a Chapter 11 plan or
pursuant to Section 363 of the U.S. Bankruptcy Code and approved
the bidding procedures associated with the process. To constitute a
qualified bid, potential buyers must, among other requirements,
agree to comply with 23andMe's consumer privacy policy and all
applicable laws with respect to the treatment of customer data.
The Company, with the assistance of Moelis, its independent
investment banker, will actively solicit qualified bids over a
45-day process following the Petition Date. Any sale transaction
involving the transfer of customer data will be subject to notice
and oversight and approval by the Court and customary regulatory
approvals.
A "second day" hearing for the Court to consider the Company's
additional requested relief, including entry of an order approving
the DIP Facility to further support ongoing operations, is
scheduled for April 22.
Additional information regarding 23andMe's Chapter 11 filing,
proceedings and claims process is available at
https://restructuring.ra.kroll.com/23andMe. Questions about the
claims process should be directed to the Company's claims agent,
Kroll, at 23andMeInfo@ra.kroll.com or by calling (888) 367-7556.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology
company empowering a healthier future. Through its
direct-to-consumer genetic testing, 23andMe offers personalized
insights into ancestry, genetic traits, and health risks. The
Company has developed a large database of genetic information from
over 15 million customers, enabling it to provide health and
carrier status reports and collaborate on genetic research for drug
development. On the Web: http://www.23andme.com/
On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No.
25-40976).
The Company disclosed $277,422,000 in total assets against
$214,702,000 in total liabilities as of Dec. 31, 2024.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis &
Bockius LLP are serving as legal counsel to 23andMe and Alvarez &
Marsal North America, LLC as restructuring advisor. Moelis &
Company LLC is serving as investment banker and Goodwin Procter LLP
is serving as legal advisor to the Special Committee of 23andMe's
Board of Directors. Reevemark and Scale are serving as
communications advisors to the Company. Kroll is the claims agent.
23ANDME HOLDING: DeleteMe Helps Users Erase Data Amid Bankruptcy
----------------------------------------------------------------
DeleteMe, a leading online privacy service, is offering vital
assistance to individuals concerned about their personal data
remaining on 23andMe's platform as the company faces financial
challenges. With news that 23andMe has filed for bankruptcy,
DeleteMe is stepping in to ensure users can quickly and effectively
remove their sensitive genetic data from the service.
Lack of transparency over 23andMe's DNA data-privacy controls has
been a longstanding public concern, but now has become a pressing
issue. With the possibility that the company could be liquidated or
go through significant restructuring, DeleteMe's dedicated service
offers a secure and efficient way to delete personal information
from the platform, providing individuals peace of mind about their
data privacy.
Why It Matters: 23andMe, which revolutionized direct-to-consumer
genetic testing, stores a vast amount of personal genetic data,
including sensitive health information. In light of financial
instability, the company's ability to protect and securely store
this data is uncertain. DeleteMe's solution offers a way for
individuals to proactively remove their data before any potential
security issues arise.
"Data privacy is crucial, and with the uncertainty surrounding
23andMe's future, now is the time for users to take control of
their sensitive information," said Rob Shavell, CEO of DeleteMe.
"We are here to help people remove their data, ensuring that they
are protected, no matter what happens next with 23andMe."
DeleteMe's Process: DeleteMe's privacy advisors work directly with
users to remove their genetic data and related information from
23andMe. The service ensures that users' personal information is
erased in compliance with privacy standards, providing clear
documentation and confirmation that the removal is complete.
The process includes:
1. Data Assessment -- DeleteMe evaluates what personal data is
stored with 23andMe.
2. Data Removal -- DeleteMe's experts work to remove all sensitive
information from the platform.
3. Ongoing Monitoring -- DeleteMe provides continued privacy
monitoring to ensure that data remains deleted.
About DeleteMe
DeleteMe is a premier data privacy service dedicated to helping
individuals manage and protect their personal information online.
The company specializes in the removal of personal data from online
platforms, helping users regain control over their digital
footprint. With a focus on privacy and security, DeleteMe helps
individuals safeguard their personal data from potential misuse.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology
company empowering a healthier future. Through its
direct-to-consumer genetic testing, 23andMe offers personalized
insights into ancestry, genetic traits, and health risks. The
Company has developed a large database of genetic information from
over 15 million customers, enabling it to provide health and
carrier status reports and collaborate on genetic research for drug
development. On the Web: http://www.23andme.com/
On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No.
25-40976).
The Company disclosed $277,422,000 in total assets against
$214,702,000 in total liabilities as of Dec. 31, 2024.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis &
Bockius LLP are serving as legal counsel to 23andMe and Alvarez &
Marsal North America, LLC as restructuring advisor. Moelis &
Company LLC is serving as investment banker and Goodwin Procter LLP
is serving as legal advisor to the Special Committee of 23andMe's
Board of Directors. Reevemark and Scale are serving as
communications advisors to the Company. Kroll is the claims agent.
23ANDME HOLDING: J. Selsavage Named Interim CEO, President
----------------------------------------------------------
On March 21, 2025, Anne Wojcicki, 23andMe Holding Co.'s Chief
Executive Officer and President, by mutual agreement between Ms.
Wojcicki and the Special Committee, tendered her resignation as an
officer of the Company to the Board, which such resignation was
effective at 5:00 p.m., Eastern Time, on March 23, 2025, the
Company disclosed in a Form 8-K filing with the U.S. Securities and
Exchange Commission. Ms. Wojcicki continues to serve as a Class III
director on the Board.
On March 21, 2025, following Ms. Wojcicki's resignation and
effective as of the Resignation Effective Time, the Board appointed
Joseph Selsavage, the Company's current Chief Financial and
Accounting Officer, as Interim Chief Executive Officer and Interim
President. Mr. Selsavage will serve as the Company's principal
executive officer on an interim basis, while he continues to serve
as the Company's principal financial officer and principal
accounting officer. Mr. Selsavage's biographical information and
business experience is set forth on page 34 of the Definitive Proxy
Statement on Schedule 14A filed by the Company with the Securities
and Exchange Commission on July 16, 2024 and is incorporated herein
by reference. There are no family relationships between Mr.
Selsavage and any director or executive officer of the Company, and
the Company has not entered into any transactions with Mr.
Selsavage that are reportable pursuant to Item 404(a) of Regulation
S-K. There are no arrangements or understandings between Mr.
Selsavage and any other persons pursuant to which he was selected
as the Company's Interim Chief Executive Officer and Interim
President.
Selsavage Retention Agreement
On March 21, 2025, the Company entered into a Cash Retention
Agreement with Mr. Selsavage. Pursuant to the Retention Agreement,
the Company paid Mr. Selsavage a cash bonus of $500,000 on the
Retention Agreement Effective Date as consideration for his
continued service during the period beginning on the Retention
Agreement Effective Date and ending on the earlier of (i) December
31, 2025 and (ii) the date of the Company's emergence from
bankruptcy following the effective date of a plan of reorganization
approved by the Court and implemented under the Bankruptcy Code or
a consummation of a comprehensive out-of-court restructuring
transaction, in either case, involving the Company and/or its
affiliates.
In the event that Mr. Selsavage's employment with the Company is
terminated prior to the end of the Retention Period due to (i) Mr.
Selvavage's resignation for any reason other than Good Reason, or
(ii) by the Company for Cause (each as defined in the Retention
Agreement), Mr. Selsavage will be required to repay to the Company,
within forty-five (45) days following the date of his employment
termination, the entire gross amount of the Retention Bonus (the
"Retention Bonus Clawback"). The Retention Bonus Clawback will not
apply if Mr. Selsavage's employment is terminated during the
Retention Period due to (x) his death or disability, (y) a
termination by the Company without Cause, or (z) a resignation by
Mr. Selsavage for Good Reason. The Retention Agreement does not
modify any existing employment, severance, or other agreement
between the Company and Mr. Selsavage.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology
company empowering a healthier future. Through its
direct-to-consumer genetic testing, 23andMe offers personalized
insights into ancestry, genetic traits, and health risks. The
Company has developed a large database of genetic information from
over 15 million customers, enabling it to provide health and
carrier status reports and collaborate on genetic research for
drug
development. On the Web: http://www.23andme.com/
On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No.
25-40976).
The Company disclosed $277,422,000 in total assets against
$214,702,000 in total liabilities as of Dec. 31, 2024.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis &
Bockius LLP are serving as legal counsel to 23andMe and Alvarez &
Marsal North America, LLC as restructuring advisor. Moelis &
Company LLC is serving as investment banker and Goodwin Procter
LLP
is serving as legal advisor to the Special Committee of 23andMe's
Board of Directors. Reevemark and Scale are serving as
communications advisors to the Company. Kroll is the claims agent.
23ANDME HOLDING: Names M. Kvarda as Chief Restructuring Officer
---------------------------------------------------------------
In January 2025, 23andMe Holding Co. authorized the employment of
Alvarez & Marsal North America, LLC, as the Company's financial
advisor. On March 21, 2025, the Board of Directors appointed
Matthew Kvarda to serve as Chief Restructuring Officer of the
Company, which such appointment was subject to the filing of the
Bankruptcy Petitions and effective upon the Bankruptcy Petitions
Date, the Company disclosed in a Form 8-K filing with the U.S.
Securities and Exchange Commission.
In connection with Mr. Kvarda's appointment, the Company entered
into that certain Engagement Letter with A&M, to set forth the
terms of A&M's engagement and Mr. Kvarda's service as the Company's
CRO. As further set forth in the Engagement Letter, Mr. Kvarda's
authority as CRO includes, in connection with the Company's
advisors and management, (a) performing a financial review of the
Company, (b) assisting in the identification (and implementation)
of cost reduction and operations improvement opportunities, (c)
assisting with the Special Committee's review of possible
restructuring plans or strategic alternatives, (d) serving as the
principal contact with the Company's creditors with respect to
financial and operational matters, and (e) upon the mutual
agreement of A&M and the Company, providing additional A&M
employees to assist the CRO in the execution of his duties.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology
company empowering a healthier future. Through its
direct-to-consumer genetic testing, 23andMe offers personalized
insights into ancestry, genetic traits, and health risks. The
Company has developed a large database of genetic information from
over 15 million customers, enabling it to provide health and
carrier status reports and collaborate on genetic research for
drug
development. On the Web: http://www.23andme.com/
On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No.
25-40976).
The Company disclosed $277,422,000 in total assets against
$214,702,000 in total liabilities as of Dec. 31, 2024.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis &
Bockius LLP are serving as legal counsel to 23andMe and Alvarez &
Marsal North America, LLC as restructuring advisor. Moelis &
Company LLC is serving as investment banker and Goodwin Procter
LLP
is serving as legal advisor to the Special Committee of 23andMe's
Board of Directors. Reevemark and Scale are serving as
communications advisors to the Company. Kroll is the claims
agent.
23ANDME HOLDING: Says Chapter 11 Privacy Ombudsman Not Needed
-------------------------------------------------------------
Ben Zigterman of Law360 reports that on March 26, 2025, attorneys
for DNA testing company 23andMe Inc. told a Missouri bankruptcy
judge that customer data will remain protected during its Chapter
11 case, arguing that the appointment of a consumer privacy
ombudsman is unnecessary.
As previously reported by The Troubled Company Reporter on March
28, 2025, 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.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology
company empowering a healthier future. Through its
direct-to-consumer genetic testing, 23andMe offers personalized
insights into ancestry, genetic traits, and health risks. The
Company has developed a large database of genetic information from
over 15 million customers, enabling it to provide health and
carrier status reports and collaborate on genetic research for drug
development. On the Web: http://www.23andme.com/
On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No.
25-40976).
The Company disclosed $277,422,000 in total assets against
$214,702,000 in total liabilities as of Dec. 31, 2024.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis &
Bockius LLP are serving as legal counsel to 23andMe and Alvarez &
Marsal North America, LLC as restructuring advisor. Moelis &
Company LLC is serving as investment banker and Goodwin Procter LLP
is serving as legal advisor to the Special Committee of 23andMe's
Board of Directors. Reevemark and Scale are serving as
communications advisors to the Company. Kroll is the claims agent.
23ANDME HOLDING: Settles Cyber Incident Suits for $37.5MM
---------------------------------------------------------
On March 21, 2025, 23andMe Holding Co. entered into settlements
with plaintiffs represented by Potter Handy, LLP in actions filed
in the Superior Court of the State of California and arbitration
claimants represented by Labaton Keller Sucharow LLP, Levi &
Korsinsky LLP, and Milberg Coleman Bryson Phillips Grossman PLLC,
relating to the previously disclosed cyber incident reported by the
Company on October 10, 2023, the Company disclosed in a Form 8-K
filing with the U.S. Securities and Exchange Commission.
As of March 26, 2025, and inclusive of the Settlements as well as
proposed settlements previously reported by the Company, the
Company has agreed to pay, subject to the satisfaction of certain
conditions, an aggregate of $37.5 million to settle claims relating
to the Incident brought on behalf of U.S. customers, including
those who choose to exercise arbitration rights. The Settlements
represent compromise settlements and shall not be construed as an
admission of any liability or obligation whatsoever by any party to
any other party or any other person or entity.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology
company empowering a healthier future. Through its
direct-to-consumer genetic testing, 23andMe offers personalized
insights into ancestry, genetic traits, and health risks. The
Company has developed a large database of genetic information from
over 15 million customers, enabling it to provide health and
carrier status reports and collaborate on genetic research for
drug
development. On the Web: http://www.23andme.com/
On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No.
25-40976).
The Company disclosed $277,422,000 in total assets against
$214,702,000 in total liabilities as of Dec. 31, 2024.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis &
Bockius LLP are serving as legal counsel to 23andMe and Alvarez &
Marsal North America, LLC as restructuring advisor. Moelis &
Company LLC is serving as investment banker and Goodwin Procter
LLP
is serving as legal advisor to the Special Committee of 23andMe's
Board of Directors. Reevemark and Scale are serving as
communications advisors to the Company. Kroll is the claims agent.
23ANDME HOLDING: T. Walper Appointed as Non-Employee Director
-------------------------------------------------------------
On March 21, 2025, 23andMe Holding Co.'s Board of Directors
increased the size of the Board from four members to five members
in accordance with the Company's Second Amended and Restated Bylaws
and Certificate of Incorporation, as amended, and appointed Thomas
B. Walper as a non-employee director of the Board, which such Board
Increase and Appointment was subject to, and effective upon the
date of the filing of the Bankruptcy Petitions, the Company
disclosed in a Form 8-K filing with the U.S. Securities and
Exchange Commission.
As Mr. Walper was appointed as a Class III member of the Board, his
term will continue until the Company's 2027 Annual Meeting of
Stockholders and until his successor is duly elected and qualified.
Additionally, Mr. Walper was appointed to serve as a member of the
Special Committee.
In connection with the Appointment, the Board approved, and the
Company entered into, that certain Agreement for Service of
Independent Director with Mr. Walper. Pursuant to the Director
Agreement, Mr. Walper will receive a $35,000 cash payment for each
month that he serves on the Board; provided that $225,000 of the
Director Compensation was payable to Mr. Walper on or prior to the
Bankruptcy Petitions Date as an upfront payment, and thereafter,
beginning on September 1, 2025, the Director Compensation will be
paid in monthly installments of $35,000 on the first of each month,
prorated, as necessary, based on any amounts remaining of the
Payment as of September 1, 2025; provided that, (i) if the the
Bankruptcy Petitions Date had not occurred or (ii) Mr. Walper had
not been appointed to the Board, in each ease, within five business
days of payment of the Payment, Mr. Walper was obligated to repay
the Payment to the Company. If, prior to September 1, 2025, Mr.
Walper voluntarily resigns from the Board, then he will be required
to pay to the Company an amount equal to $35,000 multiplied by the
number of months less than six months that the Director Agreement
was in effect. A Voluntary Resignation does not include any
involuntary resignation, including any such resignation arising
from a change of control transaction or consummation of a
transaction involving all or substantially all of the Company's
assets. Additionally, the Director Agreement provides that Mr.
Walper will receive a payment of $2,500 for each day that he is
required to spend more than four hours addressing matters that are
outside of the regular duties associated with being a member of the
Board and the Special Committee, as applicable, on account of his
role as an independent director, for preparation and participation
in depositions, preparation for and participation in court or other
judicial or administrative hearings, participation in mediation or
settlement meetings, and for participation in meetings with Company
management, advisors, or external accountants or other consultants
that are for purposes other than regular or special meetings of the
Board or the Special Committee. Pursuant to the Director Agreement,
the Company will reimburse Mr. Walper for all reasonable,
necessary, and documented out-of-pocket expenses and disbursements
incurred in carrying out his duties and responsibilities as an
independent director, including travel on commercial flights,
lodging, and local transportation in accordance with Company
policies.
In addition to the Director Agreement, the Company and Mr. Walper
entered into an Indemnification Agreement.
There are no arrangements or understandings between Mr. Walper or
any other persons pursuant to which he was appointed as a director.
There are no family relationships between Mr. Walper and any
director or executive officer of the Company, and the Company has
not entered into any transactions with Mr. Walper that are
reportable pursuant to Item 404(a) of Regulation S-K.
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.
268 78TH STREET: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: 268 78th Street Corp
268 78th Street
Brooklyn, NY 11209
Chapter 11 Petition Date: March 27, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-41477
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Narissa A. Joseph, Esq.
NARISSA JOSEPH
305 Broadway, Suite 1001
Suite 1001
New York, NY 10007
Tel: (212) 233-3060
E-mail: njosephlaw@aol.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Harry Ng 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/47NUOWY/268_78TH_STREET_CORP__nyebke-25-41477__0001.0.pdf?mcid=tGE4TAMA
303 HIGHLINE: Seeks to Hire FlatterySalomon LLC as Accountant
-------------------------------------------------------------
303 Highline Corp., doing business as Hudson Market, seeks approval
from the U.S. Bankruptcy Court for the Southern District of New
York to employ FlatterySalomon LLC as its accountants.
The firm will render these services:
(a) review and advise the Debtor and its other professionals
as to any tax claims filed in the Debtor's case;
(b) assist the Debtor in drafting projections in support of
the Debtor's Plan of Reorganization; and
(c) perform any other accounting or financial advisory
services that the Debtor may require in connection with this case.
The firm will be paid at these rates:
Partners $350 per hour
Senior Staff $150 per hour
Clerical Staff $45 per hour
FlatterySalomon will also seek reimbursement for all out-of-pocket
disbursements.
As disclosed in the court filings, FlatterySalomon is a
"disinterested party" within the meaning of Secs. 101(14) and 327
of the Bankruptcy Code.
The firm can be reached through:
Mohammed J. Ammar
FlatterySalomon LLC
600 3rd Ave
New York, NY 10016
About 303 Highline
303 Highline Corp., doing business as Hudson Market, owns a grocery
store in New York.
303 Highline sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11409) on August 15,
2024, with $207,164 in assets and $2,161,207 in liabilities. Hyeon
Jin Kim, president, signed the petition.
Douglas Pick, Esq., at Pick & Zabicki, LLP represents the Debtor as
legal counsel.
437 88 LLC: Hires Goldberg Weprin Finkel Goldstein as Counsel
-------------------------------------------------------------
437 88, LLC seeks approval from the U.S. Bankruptcy Court for the
Eastern District of New York to employ Goldberg Weprin Finkel
Goldstein LLP to handle its Chapter 11 case.
The firm's counsel and staff will be paid at these hourly rates:
Partner $605 - $785
Associate $380 - $560
Paralegal $85 - $120
The firm received a pre-petition retainer of $20,000 from the
Debtor.
Kevin Nash, Esq., a member at Goldberg Weprin Finkel Goldstein,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Kevin J. Nash, Esq.
Goldberg Weprin Finkel Goldstein LLP
125 Park Ave., Floor 12
New York, NY 10017
Telephone: (212) 221-5700
About 437 88 LLC
437 88, LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 25-40269) on January 17, 2025,
listing under $1 million in both asset and liabilities.
Judge Elizabeth S. Stong oversees the case.
Kevin J. Nash, Esq., at Goldberg Weprin Finkel Goldstein LLP serves
as the Debtor's counsel.
4504 15 AND 1476: Seeks Chapter 11 Bankruptcy in New York
---------------------------------------------------------
On March 26, 2025, 4504 15 and 1476 45 Equity Partners LLC filed
Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern
District of New York. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will not be
available to unsecured creditors.
About 4504 15 and 1476 45 Equity Partners LLC
4504 15 and 1476 45 Equity Partners LLC is involved in activities
related to real estate.
4504 15 and 1476 45 Equity Partners LLC sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-41415)
on March 26, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million to $10 million.
Honorable Bankruptcy Judge Nancy Hershey Lord handles the case.
The Debtor is represented by Joshua R. Bronstein, Esq. at JOSHUA R.
BRONSTEIN & ASSOCIATES, PLLC.
467 CENTRAL: Case Summary & 10 Unsecured Creditors
--------------------------------------------------
Debtor: 467 Central Ave LLC
164 Clymer Street
Brooklyn, NY 11211
Business Description: 467 Central Ave LLC is a debtor with a
single real estate asset, as outlined in 11
U.S.C. Section 101(51B). The Debtor holds
the title to the property located at 467
Central Avenue, Brooklyn, New York 11235,
which is valued at approximately $1.68
million.
Chapter 11 Petition Date: March 28, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-41516
Judge: Hon. Elizabeth S Stong
Debtor's Counsel: Joel M. Shafferman, Esq.
SHAFFERMAN & FELDMAN LLP
137 Fifth Avenue
9th Floor
New York, NY 10010
Tel: (212) 509-1802
E-mail: shaffermanjoel@gmail.com
Total Assets: $1,675,000
Total Liabilities: $24,859,712
The petition was signed by David Goldwasser as chief restructuring
officer.
A full-text copy of the petition, which includes a list of the
Debtor's 10 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/AZMRWBQ/467_Central_Ave_LLC__nyebke-25-41516__0001.0.pdf?mcid=tGE4TAMA
514 THAT WAY: Seeks to Hire Haselden Farrow as Legal Counsel
------------------------------------------------------------
514 That Way, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire
Haselden Farrow PLLC as counsel.
The firm will render these services:
a. assist, advise and represent Debtors relative to the
administration of these Chapter 11 cases;
b. assist, advise and represent Debtors in analyzing its
assets and liabilities, investigating the extent and validity of
liens, and participating in and reviewing any proposed asset sales
or dispositions;
c. attend meetings and negotiate with the representatives of
creditors;
d. assist Debtors in the preparation, analysis, and
negotiation of any Chapter 11 plan;
e. take all necessary action to protect and preserve the
interests of the Debtors;
f. appear, as appropriate, before this Court, the Appellate
Courts, Harris County District Courts, and other Courts in which
matters may be heard and to protect the interests of the Debtors
before said Courts and the United States Trustee;
g. handle litigation that arises regarding claims asserted
against Debtors or each of its respective assets, and
h. perform all other necessary legal services in these cases.
The firm's current hourly billing rates are:
Melissa A. Haselden $595
Elyse M. Farrow $465
Associates/Contract Attorneys $465 to $595
Legal Assistants/Paralegals/Law Clerks $150 to $255
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
On Feb. 21, 2025, Haselden Farrow received a retainer for
representation of the Debtors via wire transfer in the amount of
$86,592 (including $6,952.00 for Chapter 11 filing fees for each
Debtor) from Nord Group, an affiliated real estate investment
/management entity of the Debtors.
Melissa A. Haselden, Esq., a partner at Haselden Farrow, 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 through:
Melissa A. Haselden, Esq.
HASELDEN FARROW PLLC
700 Milan, Site 1300
Houston, TX 77002
Tel: (832) 819-1149
About 514 That Way
514 That Way, LLC owns Edgewater Apartments located at 514 That
Way, Lake Jackson, Texas.
514 That Way and its affiliates filed Chapter 11 petitions (Bankr.
S.D. Texas Lead Case No. 25-90013) on February 24, 2025. At the
time of the filing, 514 That Way reported between $10 million and
$50 million in both assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
Melissa A. Haselden, Esq., and Elyse M. Farrow, Esq., at Haselden
Farrow, PLLC, represent the Debtors as legal counsel.
560 SEVENTH AVENUE: Court Okays Chapter 11 Plan
-----------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that on March
28, 2025, a New York bankruptcy judge confirmed the Chapter 11 plan
for the Margaritaville resort developer in Times Square, playing
the resort's namesake song during the ruling.
The Troubled Company Reporter on Feb. 14, 2025, previously reported
that 560 Seventh Avenue Owner Primary LLC filed with the U.S.
Bankruptcy Court for the Southern District of New York an Amended
Disclosure Statement with respect to Amended Chapter 11 Plan dated
February 3, 2025.
The Debtor owns and operates a hotel in the Times Square
neighborhood of Manhattan under the brand name Margaritaville
Resort Times Square (the "Hotel").
The Hotel opened in July 2021 and is located at 560 7th Avenue,
New
York, NY 10018. It is a 29-story full-service hotel with 234
guestrooms. The Hotel contains various food and beverage
concessions which the Debtor leases to tenants, including the
Margaritaville Restaurant & Tiki Bar, Joe Merchant's Coffee &
Provisions, LandShark Bar & Grill, License to Chill Bar and the 5
o'Clock Somewhere Bar.
When the Debtor, then controlled by its Former Directors and
Officers, first filed its chapter 11 petition, its corporate
parent
at the time, 560 Seventh Avenue Owner Secondary LLC ("Secondary")
was already a debtor with its own chapter 11 case pending in the
Bankruptcy Court. Secondary filed its case in order to prevent a
pending foreclosure of collateral for a mezzanine loan it had
taken.
The mezzanine lenders, AREPIII MVTS, LLC (an affiliate of Arden
Group) and CREP Times Square Hotel LLC (an affiliate of Corten
Real
Estate) (together, the "Mezzanine Lenders") obtained relief from
the automatic stay in Secondary's chapter 11 case and foreclosed
on
their collateral consisting of 100% of the equity interests in the
Debtor. As a result, the Debtor is now owned and controlled by the
Mezzanine Lenders' designee, AC MVTS Holdco, LLC (together with
its
affiliates or corporate parents, the "Parent"). Under the Parent's
management, the Debtor has continued to operate in chapter 11 and
now proposes the Plan as a means to exit chapter 11.
The Plan is predicated on agreements that the Debtor has reached
with many of its largest creditors for the treatment of their
claims as outlined herein and in the Plan. Chief among those is an
agreement with the Debtor's senior secured creditor, OWS CRE
Finding I, LLC, which agreement is set forth in the OWS Term Sheet
attached to the Plan. Another key agreement that the Debtor
reached
was with its largest general unsecured creditor, the Garment
Center
Congregation (the "Congregation"). The Debtor has also reached an
agreement with its former hotel manager, DHG TSQ, LLC for the
treatment of its secured and unsecured claims totaling
approximately $4.5 million.
As a result of these key agreements, and upon the terms and
conditions contained in the Plan, the Parent has agreed to forego
distributions on account of its $23,928,420.11 administrative
expense claim and to provide funding sufficient (when coupled with
the Debtor's cash on hand, if any) for the Debtor to make all
distributions and payments required to be made under the Plan on
or
within 90 days following the Effective Date.
This funding will provide recoveries to creditors who would not
receive any recovery if the Debtor were to be liquidated under
chapter 7 of the Bankruptcy Code. The Debtor estimates that the
total value of the Parent's contributions to the Plan will be in
excess of $30 million. In exchange for such funding, the Parent
(or
one or more of its designees) will either retain its existing
Equity Interests or be issued new Equity Interests in the Debtor.
The Plan funding to be provided by the Parent is not on account of
any preexisting Parent obligation, is indisputably substantial,
and
is necessary to make the distributions and payments required by
the
Plan.
Pursuant to the terms and conditions of the Plan and largely
through the funding provided by the Parent, all Administrative
Expense Claims will be paid in full, including Professional Fees.
Priority Tax Claims will also be paid in full. These claims will
all be paid on the later of the Effective Date or the date that
they become Allowed except that the Debtor may elect to pay
Priority Tax Claims in equal monthly installments over a period of
five years at the statutory rate of interest.
Secured Claims (other than the OWS Secured Claim, the DHG Claim
and
the Flintlock Claim) will be paid in full on the Effective Date
and
are unimpaired under the Plan, as are Priority Non-Tax Claims.
General Unsecured Claims (estimated by the Debtor to be
approximately $5.76 million) will receive their Pro Rata share of
$1 million provided that the Class votes to accept the Plan.
Personal Injury Claims (filed in the amount of $1.75 million) will
be permitted to pursue any available insurance proceeds
notwithstanding any chapter 11 or Plan stays or injunctions.
The Plan is a plan of reorganization. Upon the Effective Date of
the Plan, the Debtor will emerge from its Chapter 11 Case as a
Reorganized Debtor. Pursuant to the Plan, the Debtor's Parent will
make a New Value Contribution that will enable the Debtor to make
required distributions under the Plan. The Debtor has not received
any other offer from any person or entity to provide funding for
the Plan.
Class 3 is comprised of all General Unsecured Claims except for
Personal Injury Claims and the Congregation Claim. Provided Class
3
accepts the Plan, in full and final satisfaction, release and
discharge of the Debtor's obligations with respect to General
Unsecured Claims, each Holder of an Allowed General Unsecured
Claim
in Class 3 shall receive, in full and complete settlement,
satisfaction and discharge of such Allowed General Unsecured
Claim,
its Pro Rata share of $1,000,000.00. If Class 3 rejects the Plan,
it will not receive any distribution. The allowed unsecured claims
total $5,758,648. This Class will receive a distribution of 17% of
their allowed claims.
The Debtor and the Parent shall fund distributions under the Plan
(including with respect to settlements embodied herein) with (i)
Cash on hand; and (ii) the New Value Contribution.
A full-text copy of the Amended Disclosure Statement dated
February
3, 2025 is available at https://urlcurt.com/u?l=avYNya from
PacerMonitor.com at no charge.
About 560 Seventh Avenue Owner Primary
560 Seventh Avenue Owner Primary LLC owns and operates the
Margaritaville Resort Times Square Hotel located at 560 Seventh
Avenue, New York, NY. The Debtor sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-11289) on
August 12, 2023. In the petition signed by Stehian Pomerantz,
president, the Debtor disclosed up to $500 million in both assets
and liabilities.
Judge Philip Bentley oversees the case.
Kevin J. Nash, Esq., at Goldberg Weprin Finkel Goldstein LLP, is
the Debtor's legal counsel.
58 OCEAN AVENUE: Claims to be Paid From Asset Sale Proceeds
-----------------------------------------------------------
58 Ocean Ave., LLC, filed with the U.S. Bankruptcy Court for the
District of New Jersey a Disclosure Statement describing Plan of
Reorganization dated March 5, 2025.
The Debtor, 58 Ocean Ave, LLC, a closely held multi-member LLC,
which was formed in 2011 for the purpose of purchasing a property
commonly known as 58 Ocean Ave., Deal, New Jersey. The asset is
worth 8 million dollars.
The property is occupied by Eli Safdieh, his wife and children, one
of whom has special needs. As the Debtor is closely held, the
members are working together to resolve the Debtor's debt. The
Debtor's managing member is Joseph Safdieh. The asset has a
mortgage that is held by the secured creditor, Fifty Eight Ocean,
LLC ("Lender"), who recently purchased and was assigned the loan.
In 2017, as a result of the lingering impacts from Superstorm
Sandy, the Debtor filed Chapter 11 bankruptcy. After filing a plan,
the Debtor ultimately settled and paid its creditors by obtaining a
hard money loan. By all accounts, the bankruptcy was successful.
However, the nature of the financing that restructured the Debtor's
debt, has restricted cash flow over the years resulting in multiple
short term, high interest, high cost loans, including the loan
current.
The Debtor wishes to break out of the thumb of these high costs
loans by liquidating the asset to pay off its creditors and
preserve the equity. Debtor has private loans available to it from
family members in the event that the property cannot sell by the
deadline.
In an effort to remedy the problems that led to the bankruptcy
filing, Debtor has implemented the following procedures: Debtor has
sought the infusion of capital into the Debtor to satisfy debts
through private funding and contributions from family members.
Class 2 consists of the General Unsecured Claim of Robert G. Ricco,
Esq. This claimant will receive a lump sum payment 7 days from the
date of the closing of the loan. This Class is unimpaired.
The Plan will be funded by the sale of the asset, 58 Ocean Ave.,
Deal, New Jersey. Due to the high value of the asset and available
buyers to purchase this asset, the time required to sell the
property is September 30, 2025. In the event that the Debtor is not
able to sell the asset by the deadline, Debtor has private
financing available to pay the plan.
A full-text copy of the Disclosure Statement dated March 5, 2025 is
available at https://urlcurt.com/u?l=HH62SS from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Jenee K. Ciccarelli, Esq.
Law Offices of Wenarsky and Goldstein, LLC
410 Route 10 West, Ste 214
Ledgewood, NJ 07852
Tel: (973) 221-5272
Fax: 973-927-5252
About 58 Ocean Avenue
58 Ocean Avenue LLC is the fee simple owner of the real property
located at 58 Ocean Ave., Deal, NJ 07723-1330 valued at $8
million.
58 Ocean Avenue LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-21708) on Nov. 26, 2024.
In the petition filed by Joseph Safdieh, as managing member, the
Debtor reports total assets of $8,000,000 and total liabilities of
$4,702,145.
The Debtor is represented by Scott J. Goldstein, Esq. at LAW
OFFICES OF WENARSKY & GOLDSTEIN LLC.
75 ESSEX CORNER: Seeks Chapter 11 Bankruptcy in New York
--------------------------------------------------------
On March 25, 2025, 75 Essex Corner LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Eastern District of New York.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About 75 Essex Corner LLC
75 Essex Corner LLC is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
75 Essex Corner LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-41388) on March 25,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Nancy Hershey Lord handles the case.
The Debtor is represented by Joshua R. Bronstein, Esq. at JOSHUA R.
BRONSTEIN & ASSOCIATES, PLLC.
75 RI LLC: Seeks Chapter 11 Bankruptcy in the District of Columbia
------------------------------------------------------------------
On March 26, 2025, 75 RI LLC filed Chapter 11 protection in the
U.S. Bankruptcy Court for the District of Columbia. According to
court filing, the Debtor reports $4,150,300 in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
About 75 RI LLC
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.
75 RI LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D.C. Case No. 25-00108) on March 26, 2025. In its
petition, the Debtor reports total assets of $5,025,028 and total
liabilities of $4,150,300.
The Debtor is represented by William C. Johnson, Jr., Esq. at THE
JOHNSON LAW GROUP, LLC.
76 M INC: Seeks to Hire Long & Foster Real Estate as Broker
-----------------------------------------------------------
76 M, Inc. seeks approval from the U.S. Bankruptcy Court for the
District of Columbia to employ Long & Foster Real Estate, Inc. as
real estate broker.
The Debtor needs a broker to sell its property located at 256 57th
Street, NE Washington, DC.
The broker will receive a commission of 3.5 percent of the
property's sale price and a $399 administrative fee.
Mark McNeill, a broker at Long & Foster Real Estate, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Mark McNeill
Long & Foster Real Estate, Inc.
12520 Prosperity Drive Suite 105
Silver Spring, MD 20904
Telephone: (301) 388-2600
Email: mark.mcniell@longandfoster.com
About 76 M Inc.
76 M Inc. is primarily engaged in renting and leasing real estate
properties.
76 M Inc. filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. C. Case No. 24-00003) on Jan. 3,
2023, listing up to $50,000 in assets and $1 million to $10 million
in liabilities. The petition was signed by Peter Odagbodo as
president.
Judge Elizabeth L. Gunn presides over the case.
John D. Burns, Esq. at The Burns Law Firm, LLC represents the
Debtor as counsel.
80G DEVELOPMENT: Seeks to Tap Douglas Moliterno as Legal Counsel
----------------------------------------------------------------
80G Development, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to employ Douglas Moliterno,
Esq., an attorney practicing in Amagansett, New York, as counsel.
Mr. Moliterno disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The attorney can be reached at:
Douglas V. Moliterno, Esq.
136 Main St.
Amagansett, NY 11930
Telephone: (631) 282-8480
About 80G Development
80G Development, LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-74682) on Dec. 10,
2024, listing under $1 million in both assets and liabilities.
Judge Louis A. Scarcella oversees the case.
Douglas Moliterno, Esq., represents the Debtor as counsel.
81 STOCKHOLM: Case Summary & Eight Unsecured Creditors
------------------------------------------------------
Debtor: 81 Stockholm Group LLC
164 Clymer Street
Brooklyn, NY 11211
Business Description: 81 Stockholm Group owns the properties
located at 81 Stockholm Street and 83
Stockholm Street, Brooklyn, New York 11221,
which are currently valued at $4.73
million.
Chapter 11 Petition Date: March 28, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-41518
Judge: Hon. Elizabeth S. Stong
Debtor's Counsel: Joel M. Shafferman, Esq.
SHAFFERMAN & FELDMAN LLP
137 Fifth Avenue
9th Floor
New York, NY 10010
Tel: (212) 509-1802
Email: shaffermanjoel@gmail.com
Total Assets: $4,725,000
Total Liabilities: $24,840,544
The petition was signed by David Goldwasser as chief restructuring
officer.
A full-text copy of the petition, which includes a list of the
Debtor's eight unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/HX3DAAA/81_Stocklhom_Group_LLC__nyebke-25-41518__0001.0.pdf?mcid=tGE4TAMA
903 LAKE: Hires Real Estate Store LLC as Real Estate Agent
----------------------------------------------------------
903 Lake Front Drive, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Maryland to employ Real Estate Store, LLC
as real estate agent.
The firm will market and sell the Debtor's property located at 903
Lake Front Drive, Bowie, MD.
The firm will be paid a commission of 6 percent of the sales
price.
Sara Leslie Campbell, a partner at Real Estate Store, 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:
Sara Leslie Campbell
Real Estate Store, LLC
5623 Allentown Road Ste 102
Camp Springs, MD 20746
Tel: (301) 423-8081
About 903 Lake Front Drive
903 Lake Front Drive, LLC, was formed as a Maryland limited
liability company on October 27, 2021.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 24-11815) on March 4, 2024,
with $500,001 to $1 million in assets and liabilities.
Judge Maria Ellena Chavez-Ruark presides over the case.
Charles Earl Walton, Esq., at Walton Law Group, Llc, is the
Debtor's legal counsel.
A.R.M. BAGELS: Seeks to Tap Penachio Malara as Bankruptcy Counsel
-----------------------------------------------------------------
A.R.M. Bagels Inc., doing business as Highridge 2 Bagels, seeks
approval from the U.S. Bankruptcy Court for the Southern District
of New York to employ Penachio Malara, LLP as counsel.
The firm will render these services:
(a) assist in the administration of the Debtor's Chapter 11
proceeding, the preparation of operating reports and complying with
applicable law and rules;
(b) review claims and resolve claims which should be
disallowed; and
(c) assist in a sale and/or reorganizing and confirming a
Chapter 11 plan or implementing an alternative exit strategy.
The firm's counsel and staff will be paid at these hourly rates:
Anne Penachio, Attorney $450
Francis Malara, Attorney $450
Paralegal $225
In addition, the firm will seek reimbursement for expenses
incurred.
The firm will received a retainer of $5,000 from Anthony Iaccarino,
the Debtor's principal.
Ms. Penachio 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:
Anne Penachio, Esq.
Penachio Malara, LLP
245 Main Street, Suite 450
White Plains, NY 10601
Telephone: (914) 946-2889
About A.R.M. Bagels Inc.
A.R.M. Bagels Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22194) on March 7,
2025, listing under $1 million in both assets and liabilities.
Judge Kyu Young Paek oversees the case.
Anne Penachio, Esq., at Penachio Malara, LLP serves as the Debtor's
counsel.
ACCO BRANDS: Egan-Jones Retains B+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on March 18, 2025, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Acco Brands Corporation. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Lake Zurich, Illinois, Acco Brands Corporation
manufactures office products.
ACCOUNTING LAB: Seeks Chapter 11 Bankruptcy in Florida
------------------------------------------------------
On March 1, 2025, The Accounting Lab Group 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 $1
million to $10 million in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
About The Accounting Lab Group LLC
The Accounting Lab Group LLC is a Florida-based firm specializing
in accounting, tax planning, and business management services. The
Company provides tailored solutions to help business owners
minimize taxes, optimize revenue, reduce overhead, and streamline
operations. The Company works closely with professionals such as
physicians, dentists, veterinarians, and small businesses to
enhance their financial performance and efficiency.
The Accounting Lab Group LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla.Case No.: 25-01659) on March
1, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Lori V. Vaughan handles the case.
The Debtor is represented by Daniel A. Velasquez, Esq. at LATHAM
LUNA EDEN & BEAUDINE LLP.
ACTION ENVIRONMENTAL: $150MM Add-on No Impact on Moody's 'B2' CFR
-----------------------------------------------------------------
Moody's Ratings said that The Action Environmental Group Inc.'s
ratings, including its B2 corporate family rating and B2 backed
senior secured ratings, are not affected by the company's proposed
$150 million add-on to its existing backed senior secured first
lien term loan. The Action Environmental Group is a subsidiary of
Interstate Waste Services, Inc. (collectively "IWS"). The outlook
is stable.
Proceeds from the $150 million incremental term loan will be used
to fund IWS's very active acquisition strategy, which includes
seven acquisitions thus far in 2025 that have either closed or will
be executed in the very near future. This follows five acquisitions
completed in 2024 for a total of more than $250 million. The
overarching rationale behind IWS's acquisition strategy is to
increase the company's waste collection territory and geographic
density in the tri-state area in the Northeast US. In particular,
some acquisitions have been to add assets ahead of servicing new
commercial waste zones (CWZ) in NYC that were awarded to IWS.
IWS's financial leverage is high following the aggressive pace of
acquisitions as well as significant growth investments made over
the past year, including a new gondola and materials recycling
facilities (MRF). Moody's estimates pro forma debt-to-LTM EBITDA
was in the upper 6 times range at December 31, 2024 (inclusive of
the acquisitions). With elevated leverage, Moody's considers IWS's
financial flexibility to be limited until the company yields
expected earnings and synergies from its recent investments.
Moody's expects debt-to-EBITDA to trend towards 6 times over the
next twelve months as the company realizes improved earnings from
1) its gondola and MRF investments, 2) CWZ implementation and 3)
synergies from acquisitions.
Despite the elevated leverage, IWS's credit profile is supported by
the company's position as a leading provider of commercial,
municipal, and to a lesser extent residential and other waste and
recycling services in the tri-state area. IWS has a recession
resistant and sticky recurring revenue stream with pricing power
supported by declining disposal capacity in the Northeast US. This
has yielded consistently positive organic revenue growth, which
Moody's expects to continue.
In addition to the incremental term loan, IWS is also looking to
upsize its revolving credit facility to $250 million from $180
million to provide additional liquidity. Following the transaction,
Moody's expects IWS' revolver will be undrawn, but Moody's
anticipates the company to draw on the facility over the next
twelve months to fund growth capital investments.
The Action Environmental Group, Inc., a wholly-owned subsidiary of
Interstate Waste Services, Inc., is a vertically-integrated
provider of waste and recycling services. The company is owned and
controlled by PE firms Ares and Littlejohn & Co.
ADAPTHEALTH LLC: Moody's Affirms 'Ba3' CFR & Alters Outlook to Pos.
-------------------------------------------------------------------
Moody's Ratings affirmed AdaptHealth, LLC's (AdaptHealth) Corporate
Family Rating at Ba3, the Probability of Default Rating at Ba3-PD
and the company's senior unsecured note rating at B1. The
Speculative Grade Liquidity remains unchanged at SGL-1. At the same
time, Moody's revised outlook to positive from stable.
The affirmation of AdaptHealth's ratings reflects Moody's
expectations for the company to continue to exhibit modest organic
growth following improved operating performance, especially in the
diabetes segment. Moody's expects AdaptHealth to maintain very good
liquidity to support its future growth prospects. Moody's
anticipates that the company will continue to execute a growth
strategy that relies on acquisitions but should be mostly funded
with excess free cash flow. AdaptHealth has a strong track record
of successful acquisition integration and synergy realization.
The outlook change to positive reflects increasing potential for a
ratings upgrade as the company continues to transition toward a
more conservative capital structure. Moody's forecasts AdaptHealth
will be able to de-lever to around 2.5x over the next 12 to 18
months, given anticipated growth from improved operating
performance and change in product mix following the divestitures of
some of its less profitable businesses. Additionally, Moody's
anticipates that AdaptHealth will continue to improve its free cash
flow generation as interest expense has declined after
AdaptHealth's recent debt repayment of around $170 million on the
term loan.
RATINGS RATIONALE
AdaptHealth's Ba3 Corporate Family Rating reflects the company's
meaningful scale in the provision of home healthcare equipment and
related supplies in the United States with sales of around $3.3
billion (FYE 2024). The company benefits from its focus on a broad
range of patient needs including sleep, home medical equipment,
diabetes and respiratory products, the majority of which relate to
chronic medical conditions with high levels of recurring revenues.
AdaptHealth is somewhat concentrated in sleep-related products
which are approximately 41.6% of sales.
The rating is constrained by the company's moderate leverage at
around 3.2x. Moody's expects debt/EBITDA to decline to around 2.5x
over the next 12-18 months. The pace of deleveraging will depend on
the company's appetite for future acquisitions and the ramp of the
sleep business as supply chain disruptions are resolved.
The SGL-1 Speculative Grade Liquidity rating reflects the company's
very good liquidity profile. Cash levels stood at approximately
$110 million as of December 31, 2024 and Moody's anticipates that
the company will generate around $200 million of free cash flow in
2025. The company has a $300 million revolving credit facility that
was extended through September 2029. There were $22.4 million of
LOCs outstanding as of December 31, 2024.
The company's secured term loan agreements are subject to maximum
leverage and minimum fixed charge covenants which have ample
headroom. The company has limited alternative sources of liquidity
as substantially all assets are pledged.
AdaptHealth's unsecured notes are rated B1, one notch below the Ba3
Corporate Family Rating. The rating of the senior unsecured bonds
reflects their structural subordination to the secured debt in the
company's capital structure, comprised of the $300 million
(unrated/undrawn) revolving credit facility and a $650 million
(unrated) term loan that had $550 million outstanding at December
31, 2024. Both the revolver and the term loan matures in September
2029.
ESG considerations have a moderately negative impact on
AdaptHealth's rating. AdaptHealth's environmental risk exposures
(E-4) reflect its role as a distributor utilizing a fossil fuel
dependent truck fleet. This results in exposure to carbon
transition risk related to the carbon footprint of its truck fleet.
AdaptHealth's social risk exposures (S-4) include risk related to
demographic and societal trends as about one third of the company's
revenue is derived from Medicaid and Medicare programs. This
results in exposure to federal and state regulations related to the
reimbursement of its products and services. However, this risk is
mitigated by the company's diversity by product line.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if the company sustains debt/EBITDA below
3.0x while maintaining a good liquidity profile. Further
diversification by payor, product and geography, and increased
scale, would also be positive credit factors that could support an
upgrade.
Ratings could be downgraded if the company's financial policies
become more aggressive. Quantitatively, ratings could be downgraded
if the company sustains debt/EBITDA above 4.0x or if liquidity
erodes or the company's free cash flow generation weakens.
Headquartered in Plymouth Meeting, PA, AdaptHealth, LLC is a
provider of home healthcare equipment and medical supplies to the
home and related services in the United States. The Company
operates under four reportable segments including sleep health,
respiratory health, diabetes health, and wellness at home. The
company's products cover a range of products to address chronic
conditions such as sleep therapies, oxygen and related therapies in
the home and other home medical devices. AdaptHealth services
approximately 4.2 million patients annually in nearly all 50 states
through a network of over 660 locations in 47 states. Revenues were
around $3.3 billion during 2024.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
ADVANTACLEAN OF METRO: Hires Sternberg Naccari & White as Counsel
-----------------------------------------------------------------
Advantaclean of Metro New Orleans, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Louisiana to employ
Sternberg, Naccari & White, LLC as bankruptcy counsel.
The firm will advise the Debtor of its powers and duties and
perform all legal services which may be necessary.
Ryan Richmond, Esq., the primary attorney in this representation,
will be paid at his hourly rate of $400 plus expenses.
The firm received a retainer in the total amount of $21,738 from
the Debtor.
Mr. Richmond 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:
Ryan J. Richmond, Esq.
Sternberg, Naccari & White, LLC
935 Gravier St.
New Orleans, LA 70112
Telephone: (504) 324-2141
Facsimile: (225) 286-3046
Email: ryan@snw.law
About AdvantaClean of Metro New Orleans
AdvantaClean of Metro New Orleans LLC is a provider of mold
remediation, water damage restoration, air duct cleaning, and
moisture management services for both homes and businesses. With an
emphasis on fostering healthier living spaces, the Company offers
solutions for problems such as flooding, mold issues, and crawl
space sealing. As a locally owned and managed business,
AdvantaClean is dedicated to offering professional, dependable, and
top-quality services to the New Orleans area.
AdvantaClean of Metro New Orleans LLC sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No.: 25-10439)
on March 13, 2025. In its petition, the Debtor reports estimated
assets up to $50,000 ad estimated liabilities between $1 million to
$10 million.
Honorable Bankruptcy Judge Meredith S. Grabill handles the case.
Ryan J. Richmond, Esq., at Sternberg, Naccari & White, LLC serves
as the Debtor's counsel.
AEMETIS INC: Registers 2.1M Additional Shares Under 2019 Stock Plan
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Aemetis, Inc. filed a Registration Statement on Form S-8 with the
U.S. Securities and Exchange Commission for the purpose of
registering an additional 2,147,777 shares of the Registrant's
common stock, $0.001 par value per share authorized to be issued
under the Aemetis, Inc. Amended and Restated 2019 Stock Plan.
The newly registered shares of Common Stock are in addition to the
shares of Common Stock registered on the Company's Form S-8
(333-278384, 333-270388, 333-263452, 333-254267, 333-248489, and
333-237101) filed on March 24, 2024; March 9, 2023; March 10, 2022;
March 14, 2021; August 28, 2020; and March 12, 2020.
A full-text copy of the Registration Statement is available at:
https://tinyurl.com/38scf4sj
About Aemetis, Inc.
Founded in 2006 and headquartered in Cupertino, California,
Aemetis, Inc. -- www.aemetis.com -- is an international renewable
natural gas, and renewable fuels company focused on the operation,
acquisition, development and commercialization of innovative low
and negative carbon intensity products and technologies that
replace traditional fossil fuel products. The Company operates in
three reportable segments consisting of "California Ethanol,"
"California Dairy Renewable Natural Gas," and "India Biodiesel."
The Company's mission is to create sustainable and innovative
renewable fuel solutions that benefit communities and restore the
environment. The Company achieves this by establishing a local,
circular bioeconomy that utilizes agricultural products and waste
to produce low-carbon, advanced renewable fuels that reduce
greenhouse gas (GHG) emissions and enhance air quality by replacing
traditional fossil fuel products.
The auditor's report dated March 14, 2025, issued by RSM US LLP in
the Company's Annual Report for the year ended December 31, 2024,
raised additional concerns, with the auditor issuing a "going
concern" qualification. The report highlighted that the Company has
suffered recurring losses from operations and has a net capital
deficiency, casting substantial doubt about the Company's ability
to continue as a going concern.
As of Dec. 31, 2024, Aemetis reported $259.30 million in total
assets, $143.97 million in total current liabilities, $379.26
million in total long term liabilities, and a total stockholders'
deficit of $263.93 million.
AIXIN LIFE: To Restate 2021 Financial Statements
------------------------------------------------
On May 25, 2021, Aixin Life International, Inc., acting through a
subsidiary, HK Aixin International Group Co. Limited, entered into
an agreement with Chengdu Aixin Shangyan Hotel Management Co., Ltd
and its two shareholders Quanzhong Lin and Yirong Shen pursuant to
which the Company would acquire 100% of the equity of Aixin
Shangyan Hotel. Eighty percent of the equity of Aixin Shangyan
Hotel was owned by Mr. Lin and the balance was owned by Ms. Shen.
The acquisition was completed in July 2021.
On June 2, 2021, the Company, acting through AiXin HK entered into
an agreement with Chengdu Aixintang Pharmacy Co., Ltd. and certain
affiliated entities, each of which operates a pharmacy and its
three shareholders, Quanzhong Lin, Ting Li and Xiao Ling Li
pursuant to which Aixin would acquire 100% of the equity of
Aixintang Pharmacies. Mr. Lin owned in excess of 95% of the
outstanding equity of Aixintang Pharmacies. The remaining equity
interest was owned by Ting Li and Xiao Ling Li. The acquisition was
completed in September 2021.
The acquisitions of Aixin Shangyan Hotel and Aixintang Pharmacies
were accounted for as acquisitions of entities under common control
under ASC 805-50-15-6, and the assets and liabilities acquired were
recorded at the carrying amount under ASC 805-50-30-5.
Prior to its resignation from its position as the independent
registered principal accounting firm of the Company, KCCW Certified
Public Accountants, advised the Company in writing of the need to
restate the consolidated financial statements of the Company for
the year ended December 31, 2021 to present the results of
operations for the year ended December 31, 2021, as though the
acquisitions of Aixin Shangyan Hotel and Aixintang Pharmacies had
occurred at the beginning of the period, the Company disclosed in a
Form 8-K Report filed with the U.S. Securities and Exchange
Commission.
In addition to the necessary adjustments to the 2021 Financial
Statements, the comparative financial statements and financial
information for prior years included in the 2021 Financial
Statements needed to be restated to reflect the retroactive
adjustment of the financial data of previously separate entities
under common control that are combined. In addition, the Company
corrected the financial statement presentation of the capital
contribution from a major shareholder during the year ended
December 31, 2021.
Certain members of the Audit Committee and officers of the Company
have discussed the matters disclosed in this filing with KCCW.
The Company has provided KCCW with a copy of the disclosures it is
making in this Form 8-K and requested that KCCW furnish a letter
addressed to the Securities and Exchange Commission stating whether
or not it agrees with the statements made herein. Copies of
KCCW’s letter shall be filed as an exhibit to this Report on Form
8-K.
The Company intends to file an amendment to this Report on Form 8-K
promptly after the date hereof including the restated 2021
Financial Statements and explanations of the adjustments made as a
result of the matters described above.
About AiXin Life International
Sichuan Province, China-based AiXin Life International, Inc. is a
Colorado holding company and conducts substantially all of its
operations through its operating companies established in the
People's Republic of China, or the PRC. The Company focuses on
providing health and wellness products to the growing middle class
in China. It currently develops, manufactures, markets, and sells
premium-quality healthcare, nutritional products, and wellness
supplements, including herbs and greens, traditional Chinese
remedies, functional products such as weight management products,
probiotics, foods, and drinks. The Company also provides
advertising and marketing services to clients who engage us to
market and distribute their products.
Diamond Bar, California-based KCCW Accountancy Corp., the
Company's
former auditor, issued a "going concern" qualification in its
report dated April 5, 2024, citing that the Company incurred
recurring losses from operations and has an accumulated deficit,
which raises substantial doubt about its ability to continue as a
going concern.
ALC ENGINEERED: Seeks Approval to Tap WM Law as Bankruptcy Counsel
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ALC Engineered Solutions, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Missouri to employ WM
Law as counsel.
The firm will render these services:
(a) prepare bankruptcy forms and schedules;
(b) attend at the Sec. 341 meeting and other court hearings;
(c) prepare the disclosure statement and Chapter 11 plan,
client conferences;
(d) file monthly operating reports, phone calls, emails, deal
with creditors; and
(e) resolve confirmation issues.
Th firm's counsel and staff will be paid at these hourly rates:
Ryan Blay, Attorney $350
Jeffrey Wagoner, Attorney $350
Ryan Graham, Attorney $350
Chelsea Williamson, Attorney $350
Errin Stowell, Attorney $350
Douglas Sisson, Paralegal $175
Ana Van Noy, Paralegal $175
Betsy Hayman, Paralegal $175
Rosana Tovalin, Paralegal $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $18,262 and a filing fee of $1,738
from the Debtor.
Ms. Williamson 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:
Ryan A. Blay, Esq.
WM Law
15095 W. 116th St.
Olathe, KS 66062
Telephone: (913) 422-0909
Facsimile: (913) 428-8549
Email: blay@wagonergroup.com
ALC Engineered Solutions LLC
ALC Engineered Solutions LLC founded in 1983, ALC Engineered
Solutions LLC (doing business as Kluhsman Machine) is a custom
machining company based in Lockwood, Missouri, specializing in
precise manufacturing across a variety of sectors. The Company
offers CNC machining for materials such as aluminum, steel,
plastics, and tool steel, along with custom design services using
CAD/CAM 3D modeling. Additionally, Kluhsman Machine provides
anodizing and plating options, including hard chrome and zinc
finishes. Serving industries like aerospace, automotive, energy,
and food processing, the Company is ISO 9001 certified and HUBZone
certified, focusing on delivering high-quality, customized
solutions for its clients.
ALC Engineered Solutions LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Miss. Case No.25-60147) on March
14, 2025. In its petition, the Debtor reports estimated assets up
to $50,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Brian T. Fenimore handles the case.
Ryan A. Blay, Esq., at WM Law represents the Debtor as bankruptcy
counsel.
ALCHEMY 365: Gets Final OK to Use Cash Collateral
-------------------------------------------------
Alchemy 365, Inc. received final approval from the U.S. Bankruptcy
Court for the District of Colorado to use cash collateral.
The final order authorized the company to use cash collateral to
pay the expenses set forth in its budget, with a 15% variance
allowed.
As protection, secured creditors American National Bank and Choice
Bank were granted replacement liens on Alchemy 365's post-petition
assets, with the same validity, extent and priority as their
pre-bankruptcy liens.
Alchemy 365's authority to use cash collateral terminates if the
company fails to observe or perform any of the material provisions
of the final order; the Chapter 11 case is dismissed or converted
to one under Chapter 7; a Chapter 11 trustee is appointed; or the
company ceases to operate.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/VyiFE from PacerMonitor.com.
About Alchemy 365 Inc.
Alchemy 365, Inc. operating under various names including PowerTen
Fitness and Alchemy, is a Denver-based fitness company offering
group classes that integrate yoga, strength training, and cardio.
The company provides these services at two Denver locations: LoHi
at 2432 W 32nd Ave and Tennyson at 4144 Tennyson St.
Alchemy 365 filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Colo. Case No. 25-10797) on February 17,
2025, listing up to $500,000 in assets and up to $10 million in
liabilities. Mark Dennis, a certified public accountant at SL
Biggs, serves as Subchapter V trustee.
Judge Thomas B. McNamara oversees the case.
The Debtor is represented by:
Gabrielle Palmer, Esq.
Onsager Fletcher Johnson, LLC
600 17th Street, Suite 425N
Denver, CO 80202
Tel: 720-457-7059/303-512-1123
Email: gpalmer@ofjlaw.com
ALPINEBAY INC: Hires Arxis Financial as Business Valuation Expert
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Alpinebay, Inc. seeks approval from the U.S. Bankruptcy Court for
the Central District of California to employ Chris Hamilton, CPA,
CFE, CVA of Arxis Financial, Inc. to serve as a business valuation
expert.
The firm's services will include financial analysis, industry
research, business operations review, preparation of a detailed
valuation report with supporting documentation, and potential
expert testimony regarding the valuation findings if needed in
court proceedings.
Mr. Hamilton will be compensated at an hourly rate of $425 per
hour, to be paid by the bankruptcy estate.
Mr. Hamilton assured the court that he is a "disinterested person"
as defined by 11 U.S.C. Section 101(14).
The firm can be reached through:
Chris Hamilton, CPA, CFE, CVA
Arxis Financial, Inc.
2468 Tapo Canyon Road
Simi Valley, CA 93063
Tel: (805) 342-0749
About Alpinebay, Inc.
Alpinebay Inc. is a building materials and manufacturing company
located in California. Its products include EZ-Niches, a
lightweight and durable material, offering exceptional strength and
longevity. These niches not only provide a functional storage space
for shower essentials but also serve as a stylish focal point for
decorative tiles. It also offers Ultra X Guard, a liquid polymer
membrane that provides flawless waterproofing and fracture
protection up to 1/8" without the necessity of additional fabric.
Alpinebay sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-11386) on
December 6, 2024, with up to $50,000 in assets and up to $10
million in liabilities. Anne Xiuying Ho, chief executive officer,
signed the petition.
Judge Ronald A. Clifford, III handles the case.
Christopher J. Langley, Esq., at Shioda Langley & Chang, LLP is the
Debtor's legal counsel.
AMERICAN CANNABIS: Joseph Cleghorn Steps in as Interim President
----------------------------------------------------------------
American Cannabis Company, Inc. held a meeting of the Board of
Directors called by the sole director, Mr. Joseph Cleghorn.
At the meeting, Mr. Cleghorn announced the following officer
appointments effective immediately:
(1) Joseph Cleghorn - Interim President until such time that
Mr. Cleghorn meets the Colorado Marijuana Enforcement Division
requirements to be a "beneficial owner", once meeting such
requirements, Mr. Cleghorn will become the CEO with board
approval.
(2) Ellis Smith – re-appointed as Interim CEO, as he meets
the Colorado Marijuana Enforcement Division requirements, and is
currently listed as "beneficial owner", and will remain appointed
until Mr. Cleghorn meets said requirements.
(3) Shanna Nance - secretary and interim CFO, to last
approximately six months.
Mr. Cleghorn also nominated, and the nominees accepted the
following appointments as board members effective immediately:
(1) Todd Nichols – independent director
(2) Mark Nichols – independent director
(3) Shanna Nance - director, to coincide with the duration of
her temporary appointment as secretary and interim CFO
Todd Nichols, age 52, served as Vice President at Wesley Financial
Group LLC from 2018 to 2021, and served on the Board of Directors
of Credex Corp. No family relationship exists between Todd Nichols
and anyone affiliated with the Company.
Mark Nichols, age 71, has served as general manager and CEO of Air
Trust HVAC since 2012, and has served on the board of directors of
Credex Corp. No family relationship exists between Mark Nichols and
anyone affiliated with the Company.
Shanna Nance, age 50, already an employee of the Company, serves in
her current capacity of managing the day-to-day operations of the
retail and grow operations of the Company since 2011.
About American Cannabis
American Cannabis Company, Inc. is based in Colorado Springs,
Colorado, and operates alongside its subsidiary as a publicly
listed company on the OTC Markets OTCQB Trading Tier under the
symbol "AMMJ." The company utilizes a fully integrated business
model that offers end-to-end solutions for businesses in the
regulated cannabis industry, serving states and countries where
cannabis is regulated, decriminalized for medical use, or legalized
for recreational use.
Houston, Texas-based Hudgens CPA, the company's auditor since 2022,
issued a "going concern" qualification in its report dated May 8,
2024. This report, attached to American Cannabis' Form 10-K filed
with the U.S. Securities and Exchange Commission for the fiscal
year ended December 31, 2023, noted that the company has a working
capital deficit, has incurred net losses since its inception, and
is expected to continue experiencing further losses. The auditor
highlighted that the company requires additional funds to meet its
obligations and operational costs, which raises substantial doubt
about its ability to continue as a going concern.
American Cannabis Company reported a net loss of $3,660,416 for the
year ended December 31, 2023, as compared to $633,192 for the year
ended December 31, 2022. As of March 31, 2024, American Cannabis
Company had $2,628,487 in total assets, $2,759,498 in total
liabilities, and $131,001 in total stockholders' deficit.
AMERICAN OPEN: Taps Catanzarite Law as Special Litigation Counsel
-----------------------------------------------------------------
American Open Space Remedies LLC seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Catanzarite Law Corporation as special litigation counsel.
The firm will prosecute the Debtor and the bankruptcy estate's
Litigation Claims and perform any and all other legal services
incident and necessary to the State Court Lawsuit as the Debtor may
require.
The firm will be paid at these rates:
Kenneth Catanzarite, Esq. 600 per hour
Other Attorneys $475 to $525 per hour
Paralegals $100 to $300 per hour
The firm shall receive a post-petition retainer in the amount of
$20,000.
Kenneth Catanzarite, Esq., a partner with the firm Catanzarite Law,
assured the court that his firm is does not have an interest
adverse to Debtor or the estate.
The firm can be reached through:
Kenneth Catanzarite, Esq.
Cabalzarite Law Corporation
2331 West Lincoln Avenue
Anaheim, CA 92801
Telephone: (714) 520-5544
Fax: (714) 520-0680
Email: kcatanzarite@catanzarite.com
About American Open Space Remedies LLC
American Open Space Remedies, LLC is a company in Irvine, Calif.,
engaged in activities related to real estate.
American Open Space Remedies filed Chapter 11 petition (Bankr. C.D.
Calif. Case No. 24-12885) on Nov. 8, 2024, listing $100 million to
$500 million in assets and $10 million to $50 million in
liabilities.
Judge Scott C. Clarkson oversees the case.
Goe Forsythe & Hodges, LLP serves as the Debtor's legal counsel.
AMERICAN TIRE: Gets Chapter 11 Plan Ok After Sale to Creditors
--------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that on March
27, 2025, a Delaware bankruptcy judge confirmed American Tire
Distributors Inc.'s liquidation plan after the company completed an
approximately $835 million sale to a lender group.
The Troubled Company Reporter on March 10, 2025 reported that
American Tire Distributors, Inc. announced on March 5, 2025 that it
has completed the sale of substantially all of its assets to a
buyer entity formed by certain of its existing lenders. The assets
not included in the sale will remain in Chapter 11 and be
administered under OldCo Tire Distributors, Inc. f/k/a American
Tire Distributors, Inc., which sought Bankruptcy Court approval of
a chapter 11 plan at a hearing currently held on March 27, 2025.
American Tire Distributors, Inc., and affiliates submitted a
Disclosure Statement for the Amended Joint Chapter 11 Plan dated
February 19, 2025.
The Plan provides for the liquidation of the Debtors' remaining
assets, if any, following consummation of the Asset Sale, and the
orderly wind-down of the Debtors' Estates. The Plan also provides
the ability, following the Asset Sale, to distribute Distributable
Proceeds (if any) to Holders of Term Loan Deficiency Claims and
General Unsecured Claims pursuant to the Waterfall Recovery.
Class 5 consists of General Unsecured Claims. Except to the extent
that a Holder of an Allowed General Unsecured Claim agrees to less
favorable treatment, on or after the Effective Date, each Holder
of
an Allowed General Unsecured Claim shall receive its share of the
Distributable Proceeds attributable to each applicable Debtor, if
any, in accordance with the Remaining Waterfall Recovery
Allocation.
The Plan Administrator shall fund distributions to Holders of
Allowed Term Loan Secured Claims with the proceeds of any
Collateral for the Term Loans and to Holders of Allowed Term Loan
Deficiency Claims and Holders of Allowed General Unsecured Claims
under the Plan with the Distributable Proceeds (if any) and in
accordance with the Waterfall Recovery.
The Bankruptcy Court has scheduled the Confirmation Hearing for
March 27, 2025. Objections to Confirmation of the Plan must be
Filed and served on the Debtors, and certain other parties, by no
later than March 24, 2025, at 12:00 p.m.
A full-text copy of the Disclosure Statement dated February 19,
2025 is available at https://urlcurt.com/u?l=ZK5GCW from
PacerMonitor.com at no charge.
About American Tire Distributors
Headquartered in Huntersville, N.C., American Tire Distributors
Inc. and its affiliates are the largest distributor of replacement
tires in North America based on dollar amount of wholesale sales.
With their network of over 115 distribution centers and 1,500
delivery vehicles, the Debtors service a geographic region covering
more than 90 percent of the replacement tire market for passenger
vehicles and light trucks in the United States. The Debtors carry
many of the nation's leading tire brands including Michelin,
Pirelli, and Continental. In addition, the Debtors' proprietary
Hercules brand is a leading private tire brand in North America.
American Tire Distributors and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-12391) on October 22, 2024. In its petition, American Tire
Distributors reported $1 billion to $10 billion in both assets and
liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Kirkland & Ellis as bankruptcy counsel;
Pachulski Stang Ziehl & Jones, LLP as Delaware counsel; AP
Services, LLC as restructuring advisor; and Moelis & Company, LLC
as financial advisor. Donlin, Recano & Company, Inc. is the notice
and claims agent and administrative advisor.
ARCHDIOCESE OF SAN FRANCISCO: Court Orders Release of Abuse Data
----------------------------------------------------------------
James Nani of Bloomberg Law reports that the San Francisco
Archdiocese lost its attempt to keep board minutes and data on
sexual abuse claims against priests confidential in bankruptcy
court.
A judge's ruling Wednesday, March 26, 2025, grants claimants access
to records showing how the Roman Catholic Archbishop of San
Francisco's independent review board has investigated allegations
and advised the archbishop on clergy abuse cases since 2002.
About San Francisco Archdiocese
The Roman Catholic Archbishop of San Francisco, Archdiocese of San
Francisco, is a tax exempt religious organisation. The Archdiocese
of San Francisco is a Latin Church ecclesiastical territory or
diocese of the Catholic Church in the northern California region of
the United States. The Archdiocese of San Francisco was erected on
July 29, 1853, by Pope Pius IX and its cathedral is the Cathedral
of Saint Mary of the Assumption.
The Archdiocese sought relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Cal. Case No. 23-30564) on Aug. 21, 2023. In the
petition filed by Fr. Patrick Summerhays as vicar general and
moderator of the Curia, the Archdiocese reported $100 million to
$500 million in assets and liabilities.
The Hon. Dennis Montali oversees the case.
The Debtor tapped Feldserstein Fitzgerald Willoughby as counsel.
ARCLINE FM: Moody's Hikes CFR to 'B2', Outlook Stable
-----------------------------------------------------
Moody's Ratings upgraded Arcline FM Holdings, LLC's ("Fairbanks
Morse Defense" or "FMD") corporate family rating to B2 from B3,
probability of default rating to B2-PD from B3-PD and senior
secured first lien bank credit facility to B2 from B3. The outlook
remains stable.
The upgrade of the ratings reflects FMD's improvement in business
profile, pro forma credit metrics and liquidity following the
acquisition of Bird-Johnson propellers, a subsidiary of Rolls-Royce
plc and a manufacturer of naval propulsors and handling systems.
Bird-Johnson's products complement FMD's existing offerings and
enhances the content it provides primarily to the US Navy and Coast
Guard. The acquisition will be funded primarily with equity from
FMD's sponsor along with incremental senior secured debt that is
fungible with the existing facilities and cash. The transaction
will close in the middle of 2025. Concurrent with the incremental
increase of debt, FMD will refinance its existing senior secured
facilities and benefit from reduced interest expense. Pro forma
leverage will decline to about 5.5x from 6.0x as of September 30,
2024. Liquidity will improve with incremental free cash flow from
the acquisition and interest expense savings.
The stable outlook reflects Moody's views that FMD will effectively
manage growth, deleverage the business and maintain good liquidity
over the next 12-18 months. The stable outlook also reflects
Moody's expectations that the asset-backed revolving credit
facility will be extended before becoming current.
RATINGS RATIONALE
The B2 CFR reflects FMD's very good revenue visibility and a solid
niche position as a key US Navy/Coast Guard subcontractor. A large
installed equipment base will continue to drive demand for
aftermarket parts and services. The company is the sole domestic
supplier for the engine classes that FMD builds, and the US Navy
will primarily source its propulsion systems domestically. Barriers
to entry are therefore substantial. The strength of the company's
competitive position is demonstrated by its high EBITDA margin. The
rating is supported by the company's good growth prospects as the
US Navy extends the life of and expands its ship fleet. Liquidity
is good supported by free cash flow generation and limited use of
its revolver over the next several quarters.
The ratings also reflect modest organic growth with a niche focus.
The company's revenue base is small relative to similarly rated
peers and its customer concentration is skewed towards the US Navy
and Coast Guard. Most of the company's contracts are fixed price,
and therefore weak execution or cost overruns could lead to
volatility in earnings and cash flow. Pro forma adjusted
debt/EBITDA will remain high at about 5.5 times in support of the
company's acquisitive growth strategy.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if FMD effectively manages growth,
debt/EBITDA approaches 4.5x and free-cash-flow-to-debt is sustained
above 5%.
Ratings could be downgraded if liquidity weakens, debt/EBITDA
exceeds 6.5x, or EBITDA/Interest expense is sustained below 1.5x.
Integration challenges, poor operating performance or increasingly
aggressive financial policies could also exert downward pressure on
the ratings.
The principal methodology used in these ratings was Aerospace and
Defense published in December 2024.
Arcline FM Holdings, LLC (dba Fairbanks Morse Defense) is a
provider of propulsion systems, ancillary power units, motors and
electric controllers for the US Navy and US Coast Guard. The
company is owned by entities of Arcline Investment Management.
AZURE DEVELOPMENT: To Sell Puerto Rico Property to Punta Banderas
-----------------------------------------------------------------
Azure Development Inc. seeks permission from the U.S. Bankruptcy
Court for he District of Puerto Rico, to sell Settlement Agreement,
free and clear of liens, interests, and encumbrances.
The Loan Settlement Agreement was made between the Debtor and
Triangle Cayman Asset Co. and was amended between Banco Bilbao
Vizcaya Argentaria Puerto Rico (BBVA) and the Debtor for the
principal amount of $1,725,000.00 and constituted over two adjacent
parcels of land at Luquillo, Puerto Rico (Properties).
Triangle Cayman Asset Company acquired the Loan Agreement following
the merger of BBVA and Oriental Bank on December 18, 2012, making
Triangle the holder of the first priority mortgage lien over the
Properties.
The Debtor has defaulted under the loan and consequently Oriental
and Triangle filed a complaint for collection of monies and
foreclosure of mortgage.
The Debtor and Guarantors have executed the Settlement Agreement,
providing for total and full satisfaction of all claims between
them.
On February 21, 2025, the Debtor did not make the $2,219,326.81 due
to Triangle and the Parties could not come to an agreement as to a
further extension of the forbearances period.
On February 24, 2025, Yukiyu Real Estate, LLC acquired Triangle
Reo's interest as creditor of the rights and remedies, along with
mortgage promissory note and the bank notes relative to the
Debtor's debt to Yukiyu, making it the successor in interest to the
Settlement Agreement.
As of February 24, 2025 The Debtor owed $2,249,303.42 to Yukiyu,
which continues to accrue interest at the daily rate of $692.09,
plus expenses.
Punta Banderas Associates, Inc., a corporation organized under the
laws of Puerto Rico, has offered to purchase the Properties
encumbered now by Yukiyú for $2,500,000.00 with a repurchase
agreement (pacto de retro) of $3,000,000.
The Debtor asserts that the sale to Punta Banderas or its designee
is in the best interest of the Debtor and Yukiyu as its claim will
be paid in full and to the second holder mortgage who will receive
payment of the secured portion of her claim, when otherwise the
Properties would be foreclosed by Yukiyu, she will not receive
anything as a result of the foreclosure and Debtor will lose the
Properties.
The Debtor proposes to sell the Property free and clear of all
claims, liens, interests, and encumbrances.
About Azure Development
Azure Development, Inc., owns properties in Luquillo, P.R., valued
at $3.14 million. The company is based in San Juan, P.R.
Azure Development filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D.P.R. Case No. 23-00462) on Feb. 18,
2023, with $3,142,794 in assets and $3,246,910 in liabilities. Jose
Ricardo Martinez, vice-president of Azure Development, signed the
petition.
Judge Enrique S. Lamoutte Inclan oversees the case.
The Debtor tapped Charles A. Cuprill, P.S.C., Law Offices as
bankruptcy counsel and CPA Luis R. Carrasquillo & Co., P.S.C., as
financial advisor.
AZZUR GROUP: Gets Court Okay for at Least $1.3MM Exec. Bonuses
--------------------------------------------------------------
Emlyn Cameron of Law360 Bankruptcy Authority reports that on March
28, 2025, a Delaware bankruptcy judge approved Azzur Group Holdings
LLC's plan to award company executives at least $1.3 million if a
Chapter 11 sale exceeds $56 million, despite objections from the
U.S. Trustee's Office over a potential conflict of interest
involving an independent manager.
The Troubled Company Reporter on March 10, 2025 reported that Azzur
Group, a leading service provider to FDA-regulated pharmaceutical
and biotech companies, announced on March 2, 2025, that it has
reached an agreement to sell its consulting business to a strategic
acquirer, ELIQUENT Life Sciences with the support of its investor
GHO Capital, for $56 million. All Azzur Consulting employees and
leadership are expected to transition to ELIQUENT and the business
will continue to operate in the ordinary course with no intended
operational changes as a result of this acquisition.
To facilitate this process with minimal disruption to the
business's clients and employees, the Azzur Group has filed
voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code. Azzur intends to complete the sale process under
Section 363 of the U.S. Bankruptcy Code, with ELIQUENT acting as
the stalking horse bidder for the consulting business. The sale
process allows other potential buyers to express interest and bid
to propose the highest or otherwise best transaction for the
business.
In conjunction with the sale process, Azzur has received a
commitment for approximately $23.5 million in debtor-in-possession
financing from its secured lender, M&T Bank. Upon Court approval,
the new financing, combined with cash generated from the Company's
ongoing operations, will increase liquidity and be used to support
continued, uninterrupted business operations throughout the
process.
About Azzur Group Holdings
Azzur Group Holdings, a Pennsylvania-based professional services
company operates across multiple locations including Boston,
Chicago, San Diego, and San Francisco, providing specialized life
sciences services including consulting, laboratory testing,
cleanrooms-on-demand, and technical training services.
Azzur Group Holdings and more than 30 of its affiliates sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del.
Case No. 25-10342) on March 2, 2025. In their petitions, the
Debtors reported estimated assets and liabilities between $100
million and $500 million.
Honorable Bankruptcy Judge Karen B. Owens handles the cases.
DLA Piper LLP represents the Debtors as general bankruptcy counsel.
Ankura Consulting Group LLC serves as restructuring advisor to the
Debtors, Brown Gibbons Lang & Co. Securities Inc. acts as
investment banker, and Stretto Inc. acts as claims and noticing
agent.
B. RILEY FINANCIAL: BRS Separates in Carve-Out Transaction
----------------------------------------------------------
B. Riley Financial, Inc. announced on March 11, 2025, that a
formerly wholly-owned subsidiary of the Company has merged with
Cascadia Investments, Inc., a shell entity, as a result of which
certain investors in Cascadia became minority stockholders of BRF's
investment banking subsidiary, B. Riley Securities.
As part of the tax-free transaction, BRS is implementing its own
operating and governance structure, and its common stock will now
be quoted on the OTC Pink market under the ticker symbol "BRLY."
BRS will independently report financial results, which will provide
stakeholders with enhanced transparency and the ability to
independently value a pure-play investment bank focused on the
small cap and middle markets.
Since acquiring FBR in 2017, BRS has led more than 250 capital
markets transactions, raised in excess of $115 billion in debt and
equity for clients, and advised on M&A and restructuring
transactions totaling more than $33 billion in aggregate value. The
firm, which will be led by Andy Moore, Chairman and Co-Chief
Executive Officer, and Jimmy Baker, Co-Chief Executive Officer,
will be debt free and leverage the same strong leadership team that
has guided the business for nearly two decades.
Bryant Riley, Chairman and Co-Chief Executive Officer of BRF,
commented: "BRS has been the foundation of our firm's success ever
since we started a smaller broker dealer focused on small cap
companies in 1997. Through this transaction, we are enabling the
leadership team of BRS to return to those roots, operate separately
and execute a distinct growth strategy. As we demonstrated at our
2023 Investor Day, BRS has historically delivered steady EBITDA and
strong cash flow, and we expect that as a separate entity, the firm
will be able to return to and eventually exceed those levels of
growth and profitability. Through BRF's 89% ownership stake, BRF
shareholders will retain important upside potential as BRS
capitalizes on an expected recovery in M&A and Capital Markets
activity."
Mr. Moore and Mr. Baker added: "We are extremely enthusiastic about
how this transaction repositions our firm and what it means for our
ability to serve our clients. With a well-capitalized balance
sheet, no debt and an exceptional team, BRS is purpose-built to
serve the middle market with unmatched capabilities across Capital
Markets, Research and M&A Advisory. We will stay true to our
heritage and relentlessly focus on executing on behalf of our
clients. We look forward to embarking on this next chapter and
delivering for all stakeholders."
Transaction Details
The transaction has been structured as a tax-free separation with
minimal costs. After giving effect to the transaction, BRF owns
approximately 89% of the outstanding shares of BRS, with the
remaining shares exclusively held by the employees of BRS in the
form of restricted stock awards and certain of the existing
shareholders of Cascadia.
BRS is quoted on the OTC Pink market under the ticker symbol
"BRLY." The BRS Board of Directors consists of five members, with
four appointed by BRF including, no later than 30 days from the
date of the transaction, two directors independent of BRF and BRS.
BRF will continue to consolidate the financial results for BRS in
its financial results.
Advisors
Sullivan & Cromwell served as legal counsel to BRF, and O'Melveny &
Meyers served as legal counsel to BRS in conjunction with the
announcement.
About BRS
BRS provides a full suite of investment banking and capital markets
services to corporations, financial sponsors, and institutional
investors across all industry verticals. Investment banking
services include initial, secondary, and follow-on offerings,
institutional private placements, merger and acquisition (M&A)
advisory, SPACs, corporate restructuring and liability management.
Widely recognized for its thematic proprietary equity research,
clients benefit from BRS' extensive network, industry expertise,
and proven execution capabilities of our end-to-end financial
services platform. For more information, visit
www.brileysecurities.com.
About B. Riley Financial
B. Riley Financial, Inc. -- http://www.brileyfin.com/-- is a
diversified financial services company that delivers tailored
solutions to meet the strategic, operational, and capital needs of
its clients and partners. B. Riley leverages cross-platform
expertise to provide clients with full service, collaborative
solutions at every stage of the business life cycle. Through its
affiliated subsidiaries, B. Riley provides end-to-end financial
services across investment banking, institutional brokerage,
private wealth and investment management, financial consulting,
corporate restructuring, operations management, risk and
compliance, due diligence, forensic accounting, litigation support,
appraisal and valuation, auction, and liquidation services. B.
Riley opportunistically invests to benefit its shareholders, and
certain affiliates originate and underwrite senior secured loans
for asset-rich companies.
As of June 30, 2024, B. Riley Financial had $3.2 billion in total
assets, $3.4 billion in total liabilities, and $143.1 million in
total deficit.
B.L.H.G. GROUP: Gets Interim OK to Use Cash Collateral
------------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona granted The
B.L.H.G. Group, LLC interim authorization to use cash collateral.
The interim order authorized the company to use cash collateral to
pay for immediate necessities from the petition date through April
10, with no funds being paid to the company's principal, Blake
Austin, at this time.
A final hearing is scheduled for April 10.
About The B.L.H.G. Group
The B.L.H.G. Group, LLC, doing business as Smile Now Dental
Implant, is a dental practice based in Phoenix, Ariz., specializing
in dental implants. The center offers a variety of implant
services, including full-mouth dental implants, single implants,
zygomatic implants, and bone grafting. The company emphasizes
convenience by providing comprehensive treatment in a single
location, utilizing advanced technology such as CBCT imaging and
digital smile design software. The practice also offers financing
options, flexible scheduling, and same-day solutions for implants.
B.L.H.G. filed Chapter 11 petition (Bankr. D. Ariz. Case No.
25-02029) on March 11, 2025, listing $180,813 in assets and
$2,155,970in liabilities. Blake Austin, manager and member, signed
the petition.
Judge Scott H. Gan oversees the case.
Allan D. NewDelman, Esq., at Allan D. NewDelman, P.C., represents
the Debtor as legal counsel.
BARRETTS MINERALS: Mediator Attributes Impasse to Committee
-----------------------------------------------------------
Rick Archer of Law360 reports that the mediator in Barretts
Minerals Inc.'s bankruptcy told a Texas court that Chapter 11 plan
negotiations have hit an impasse, citing unsecured creditors'
failure to engage.
The Troubled Company Reporter on March 27, 2025, citing Yun Park of
Law360, reported that Barretts Minerals Inc. has urged a Texas
bankruptcy court to declare that talc injury
claims tied to inadequate asbestos testing belong to its Chapter 11
estate, calling the issue a critical hurdle in settlement
negotiations with affiliates, unsecured creditors, and the future
claims representative.
About Barretts Minerals Inc.
Barretts Minerals Inc.'s current operations are focused on the
mining, beneficiating, processing, and sale of industrial talc. It
historically supplied a relatively minor percentage of its sales
into cosmetic applications. Barretts Minerals' talc is sold to
distributors and third-party manufacturers for use in such parties'
products, which are then incorporated into downstream products
eventually sold to consumers.
Barretts Minerals and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case
No. 23-90794) on Oct. 2, 2023. In the petition signed by its chief
restructuring officer, David J. Gordon, Barretts Minerals disclosed
$50 million to $100 million in assets and $10 million to $50
million in liabilities.
The case was initially assigned to Judge David R. Jones before
Judge Marvin Isgur took over.
The Debtors tapped Porter Hedges, LLP and Latham& Watkins, LLP as
legal counsel; M3 Partners, LP as financial advisor; Jefferies, LLC
as investment banker; and DJG Services, LLC as restructuring
advisor. David J. Gordon of DJG Services serves as the Debtors'
chief restructuring officer. Stretto, Inc. is the claims, noticing
and solicitation agent and administrative advisor.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Caplin & Drysdale, Chartered and Province, LLC serve as the
committee's legal counsel and financial advisor, respectively.
BARROW SHAVER: Seeks to Tap Miller Fair Henry as Litigation Counsel
-------------------------------------------------------------------
Barrow Shaver Resources Company, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Miller Fair Henry PLLC as local litigation counsel.
The firm will render these services:
(a) advise the Debtor with respect to the Pending Litigation,
a series of lawsuit related to its exploration and oil and gas
operations in East Texas, in the Eastern District;
(b) defend the Debtor with respect to the Pending Litigation
in the Eastern District;
(c) assist the Debtor's other bankruptcy and special
litigation counsel in complying with the rules and customs in the
Eastern District;
(d) appear before the Eastern District and any appellate
courts to represent the interests of the Debtor's estate;
(e) perform all other necessary legal services for the Debtor
in connection with the Pending Litigation or any other matter that
is necessary and appropriate; and
(f) provide any other litigation services on behalf of the
Debtor and its bankruptcy counsel or special litigation counsel
feel is appropriate and necessary.
The hourly rates of the firm's counsel are as follows:
Hon. T. John Ward, Attorney $600
Charles Everingham, IV, Attorney $600
Brett Miller, Attorney $500
Support Staff $150
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Everingham 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:
Charles Everingham, Esq.
Miller Fair Henry PLLC
1507 Bill Owens Pkwy.
Longview, TX 75604
Telephone: (903) 757-6400
Facsimile: (903) 757-2323
About Barrow Shaver Resources Company
Barrow Shaver Resources Company, LLC is a privately held,
independent oil and gas exploration and acquisition company based
in Tyler, Texas. Barrow Shaver is engaged in prospect generation,
producing properties acquisition, lease acquisition, assembly and
marketing of prospects for the exploration and development of oil
and natural gas in the prolific producing trends of the East Texas
and West Texas Basins.
Barrow Shaver Resources Company sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-33353) on
Aug. 19, 2024. In the petition signed by James Katchadurian, chief
restructuring officer, the Debtor disclosed up to $100 million in
both assets and liabilities.
Judge Alfredo R. Perez oversees the case.
The Debtor tapped Jones Walker LLP as counsel, Miller Fair Henry
PLLC as local litigation counsel, and CR3 Partners, LLC as
financial advisor. Kroll Restructuring Administration, LLC is the
Debtor's claims, noticing, and solicitation agent.
BEACON ROOFING: QXO Transaction No Impact on Moody's 'Ba2' CFR
--------------------------------------------------------------
Moody's Ratings said the announced acquisition of Beacon Roofing
Supply, Inc. (Beacon) by QXO, Inc. has no immediate impact on
Beacon's ratings, including the company's Ba2 corporate family
rating, or its stable outlook.
On March 20, 2025, Beacon and QXO jointly announced the signing of
a definitive merger agreement whereby Beacon would be acquired by
QXO in an all-cash transaction valued at about $11 billion. This
transaction follows a previously announced all-cash tender offer by
QXO to acquire all outstanding shares of Beacon, which is set to
expire at 5pm on March 31, 2025. The acquisition is expected to
close by the end of April 2025 and is subject to a majority of
Beacon shares being tendered in the offer as well as other
customary closing conditions. As of 5pm on March 19, 2025 just
under 20% of the issued and outstanding shares of Beacon had been
tendered.
The acquisition will trigger the change of control provisions on
Beacon's outstanding senior unsecured and secured notes, which
total $1.25 billion and make up about half of the company's debt.
If Beacon's debt is retired, Moody's will withdraw its ratings upon
repayment. If Beacon's debt is not retired following the closing of
the acquisition, Moody's ability to maintain the company's ratings
will consider where in the corporate structure Beacon's debt will
reside, any guarantees of Beacon's debt by QXO or its subsidiaries,
whether Beacon would be providing guarantees to any of QXO's debt,
and the financial and operational disclosures available with
respect to Beacon. Other factors Moody's will consider in
determining the ability to maintain Beacon's rating post-closing
include the company's long-term operational strategy, financial
policy and corporate governance structure.
Beacon Roofing Supply, Inc., headquartered in Herndon, Virginia, is
one of the largest wholesale distributors of roofing material and
other building products in the US. Revenues were $9.7 billion for
the 12 months ended December 31, 2024.
BEAZER HOMES: Egan-Jones Retains BB- Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on March 5, 2025, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Beazer Homes USA, Inc. EJR also withdrew its rating
on commercial paper issued by the Company.
Headquartered in Atlanta, Georgia, Beazer Homes USA, Inc. designs,
builds, and sells single family homes.
BECKER INC: Court Extends Cash Collateral Access to May 7
---------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Kentucky
issued an agreed order authorizing Becker, Inc. to use cash
collateral until May 7, following an agreement with PNC Bank, N.A.
and other secured creditors.
The company requires the use of cash collateral to pay its
operating and administrative expenses.
As protection, each creditor will be granted replacement liens on
all of the post-petition property of the company that is similar to
or traceable to each creditor's respective pre-bankruptcy interest
in the company's property.
In addition, PNC Bank will receive a monthly payment of $4,395.42.
The order required Becker, Inc. to keep its assets insured as
additional protection to secured creditors.
About Becker Inc.
Becker, Inc. has two convenient superstore locations specializing
in University of Louisville & University of Kentucky apparel,
gifts, and accessories.
Becker sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Ky. Case No. 24-31386) on May 29, 2024, with up
to $10 million in both assets and liabilities. Becker President
John I. Becker signed the petition.
Judge Charles R. Merrill oversees the case.
The Debtor is represented by Charity S. Bird, Esq., at Kaplan
Johnson Abate & Bird, LLP.
PNC Bank, as secured creditor, is represented by:
Keith J. Larson, Esq.
Morgan Pottinger McGarvey
401 South Fourth Street, Suite 1200
Louisville, KY 40202
Telephone: (502) 560-6785
Email: kjl@mpmfirm.com
BEELINE HOLDING: Name Change, 1-for-10 Reverse Split Effective
--------------------------------------------------------------
Beeline Holdings, Inc., formerly known as Eastside Distilling, Inc.
disclosed in a Form 8-K Report filed with the U.S. Securities and
Exchange Commission that on March 10, 2025, it filed a Certificate
of Amendment to its Amended and Restated Articles of Incorporation
with the Nevada Secretary of State for purposes of:
(i) changing the Company's name from Eastside Distilling, Inc.
to Beeline Holdings, Inc. and:
(ii) effecting a reverse stock split of all outstanding shares
of the Company's common stock, par value $0.0001 per share, at a
ratio of one-for-10, which became effective with The Nasdaq Stock
Market, LLC on March 12, 2025.
About Beeline Holdings
Headquartered in Portland, Oregon, Beeline Holdings, Inc. (formerly
known as Eastside Distilling, Inc.) has been producing craft
spirits in Portland, Oregon since 2008. The Company is
distinguished by its highly decorated product lineup that includes
Azunia Tequilas, Burnside Whiskeys, Hue-Hue Coffee Rum, and
Portland Potato Vodkas. All spirits are crafted from natural
ingredients for the highest quality and taste. Beeline's Craft
Canning + Printing subsidiary is one of the Northwest's leading
independent mobile canning, co-packing, and digital can printing
businesses.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's former
auditor, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company suffered a net loss from
operations and used cash in operations, which raises substantial
doubt about its ability to continue as a going concern.
The Company incurred a net loss of $7.5 million during the year
ended December 31, 2023. As of June 30, 2024, the Company had
$16,589,000 in total assets, $18,523,000 in total liabilities, and
$1,934,000 in total stockholders' deficit.
BENSON HILL: Court Approves First-Day Motions in Bankruptcy Case
----------------------------------------------------------------
Benson Hill, Inc., a seed innovation company, announced on March
25, 2025, that the U.S. Bankruptcy Court for the District of
Delaware has approved the Company's initial "first-day" motions
following its voluntary filing for relief under Chapter 11 of the
U.S. Bankruptcy Code on March 20, 2025.
These approvals are expected to ensure business continuity as
Benson Hill works to strengthen its financial position and continue
advancing its work to deliver better feed, food, and fuel through
innovative soybean seed genetics and soy quality traits.
The Court's orders allow the Company and its affiliated debtors to
continue day-to-day operations with minimal disruption, including:
-- Access to up to $11 million in debtor-in-possession (DIP)
financing from existing lenders, including Expedition Ag Holdings,
S2G Investments, Steve Kahn, and ProAgInvest, with an initial $3
million available immediately. These funds will support payroll,
vendor payments, and other critical operating expenses.
-- Authorization to pay employee wages and benefits without
interruption.
-- Ability to honor prepetition obligations to key business
partners--including critical vendors, shippers, warehouse
providers, and suppliers with administrative expense claims under
section 503(b)(9)
--to maintain operational continuity and preserve value in the
business.
-- Permission to maintain existing cash management systems, bank
accounts, and routine business operations.
-- Legal authorization for DIP lenders to credit bid for assets,
along with other customary protections in the event of default.
"These approvals give us the opportunity to maintain momentum while
we take the necessary steps to restructure our financial
foundation," said Dan Cosgrove, Interim Chief Executive Officer of
Benson Hill. "We remain focused on delivering value to our
customers and partners while positioning the business for long-term
success and maximizing value for all of our stakeholders."
A final hearing to consider approval of the full DIP financing and
vendor-related motions is scheduled for April 16.
Additional information about the Chapter 11 process is available on
the website maintained by the Company's claims agent Stretto, Inc.,
at https://cases.stretto.com/bensonhill.
About Benson Hill
Benson Hill is an ag-tech company focused on innovating soy protein
through advanced genetics. Using its CropOS technology platform,
the Company creates food and feed that are more nutritious,
functional, and produced efficiently, offering sustainability
benefits to the food and feed sectors.
Benson Hill and its affiliates sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10539) on
March 20, 2025. The petitions were signed by Daniel Cosgrove as
interim chief executive officer. In the petitions, the Debtors
reported total assets of $137,542,000 and total debts of
$110,701,000.
Honorable Bankruptcy Judge Thomas M Horan handles the case.
The Debtors' bankruptcy counsel is Faegre Drinker Biddle & Reath
LLP. The Debtors' investment banker is Piper Sandler. The Debtors'
financial advisors is Meru, LLC and the Debtors' claims and
noticing agent is Stretto, Inc.
BEYOND AIR: Ron Bentsur Steps Down From Board
---------------------------------------------
Beyond Air, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that Ron Bentsur resigned from
the board of directors on March 14, 2025.
Mr. Bentsur's resignation is not due to any disagreement with the
Company, or the Company's management, on any matter relating to the
Company's operations, policies or practices.
About Beyond Air
Headquartered in Garden City, N.Y., Beyond Air, Inc. --
www.beyondair.net -- is a commercial-stage medical device and
biopharmaceutical company developing a platform of nitric oxide
generators and delivery systems (the "LungFit platform") capable of
generating NO from ambient air. The Company's first device, LungFit
PH, received premarket approval from the FDA in June 2022. The NO
generated by the LungFit PH system is indicated to improve
oxygenation and reduce the need for extracorporeal membrane
oxygenation in term and near term (34 weeks gestation) neonates
with hypoxic respiratory failure associated with clinical or
echocardiographic evidence of pulmonary hypertension in conjunction
with ventilatory support and other appropriate agents.
East Hanover, New Jersey-based Marcum LLP, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated June 24, 2024, citing that the Company has incurred
significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
As of December 31, 2024, Beyond Air had $34.1 million in total
assets, $15.8 million in total liabilities, and $18.4 million in
total equity.
BEYOND MANAGEMENT: Hires Hector Eduardo Pedrosa Luna as Counsel
---------------------------------------------------------------
Beyond Management Development Investment Group Corp. seeks approval
from the U.S. Bankruptcy Court for the District of Puerto Rico to
employ The Law Offices of Hector Eduardo Pedrosa Luna as counsel.
The firm will provide these services:
(a) prepare bankruptcy schedules, pleadings, applications, and
conduct examinations incidental to any related proceedings or to
the administration of this case;
(b) develop the relationship of the status of the Debtor to
the claims of creditors in this case;
(c) advise the Debtor of its rights, duties, and obligations
as operating under Chapter 11 of Bankruptcy Code;
(d) take any and all other necessary action incident to the
proper preservation and administration of this Chapter 11 case;
and
(e) advise and assist the Debtor in the formation and
preservation of a plan pursuant to Chapter 11 of the Bankruptcy
Code, the disclosure statement, and any and all matters related
thereto.
Hector Eduardo Pedrosa-Luna, Esq., will be paid at his hourly rate
of $175.
The firm received a retainer of $7,262 from Ivan Garcia Martinez,
the Debtor's president.
Mr. Pedrosa-Luna 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:
Hector Eduardo Pedrosa-Luna, Esq.
The Law Offices of Hector Eduardo Pedrosa Luna
P.O. Box 9023963
San Juan, PR 00902
Telephone: (787) 920-7983
Facsimile: (787) 754-1109
Email: hectorpedrosa@gmail.com
About Beyond Management Development Investment Group
Beyond Management Development Investment Group Corp. filed Chapter
11 petition (Bankr. D.P.R. Case No. 25-01160) on March 17, 2025,
listing under $1 million in both assets and liabilities.
The Law Offices of Hector Eduardo Pedrosa Luna serves as the
Debtor's counsel.
BGI SEWELL: Taps Obermayer Rebmann Maxwell & Hippel as Attorney
---------------------------------------------------------------
BGI Sewell, LLC seeks approval from the U.S. Bankruptcy Court for
the District of New Jersey to hire Obermayer Rebmann Maxwell &
Hippel as attorney.
The attorney will render these professional services:
a. advise the Debtor of its rights, powers and duties as a
debtor in possession in continuing to operate ang manage its assets
and business;
b. assist officers and professionals of BGI in the preparation
of any administrative and procedural legal papers as may be
required for the sound conduct of the case, including the Debtor's
schedules and statement of financial affairs;
c. perform all other legal services for BGI;
d. prepare responses to any applications, motions, pleading,
orders, notices, petitions, schedules and other documents which may
be filed in the Debtor's chapter 11 case;
e. counsel the Debtor in its effort to sell all or
substantially all of its assets pursuant to 11 U.S.C. Sec. 363 and
in connection with the drafting, negotiation and promulgation of a
Chapter 11 plan and disclosure statement;
f. review the nature and validity of agreements relating for
the Debtor's business operations and advise the Debtor in
connection therewith;
g. advise regarding the actions it may take to collect and
recover property for the benefit of its bankruptcy estate;
h. review claims and advise the Debtor in claim objections;
i. review the nature and validity of liens asserted against
the Debtor and advise as to the enforceability of those liens.
Obermayer's discounted hourly rates are:
Partners $565 to $780
Associates $400 to $500
Paralegals $125
During the ninety (90) days prior to the Petition Date, the Debtor
paid Obermayer a retainer in the amount of $20,000 in two
installments, the first in the amount of $10,000 received on March
3, 2025 and the second in the amount of $10,000 received on the
morning of March 4, 2025, along with an additional $1,775 as
payment for the Chapter 11 Petition filing fee.
Edmond M. George, member at Obermayer Rebmann Maxwell & Hippel,
attests that his firm does not represent or hold an adverse
interest to the estate and is a disinterested person under 11
U.S.C. Sec. 101(14).
The firm can be reached at:
Edmond M. George
Obermayer Rebmann Maxwell & Hippel
Centre Square West
1500 Market Street, Suite 3400
Philadelphia, PA 19102
Phone: (215) 665-3140
Email: edmond.george@obermayer.com
About BGI Sewell, LLC
BGI Sewell, LLC sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D.N.J. Case No. 25-12235) on March 4,
2025, listing $100,001 to $500,000 in both assets and liabilities.
Edmond M. George, Esq. at Obermayer Rebmann Maxwell & Hippel
represents the Debtor as counsel.
BISHOP OF OAKLAND: Hires Hilco Real Estate as Consultant
--------------------------------------------------------
Roman Catholic Bishop of Oakland seeks approval from the U.S.
Bankruptcy Court for the Northern District of California to employ
Hilco Real Estate, LLC as real estate consultant.
The firm's services include:
a. analysis and valuation of real property titled in the name
of the Debtor;
b. analysis and valuation of certain real property titled in
the name of Debtor-affiliated Non-Debtor Catholic Entities1 as
necessary in connection with the Debtor's reorganization;
c. provision of reports and summaries regarding the foregoing
as may be required by the Debtor; and
d. provision of other activities related to the foregoing as
are requested by the Debtor and agreed to by Hilco.
The firm will be paid at these hourly rates:
Jeff Azuse, Executive Vice President $805
Matthew Mason, Senior Vice President $765
Adam Zimmerman, MAI, Senior Vice President $650
Chris Parthum, Associate $475
As disclosed in court filings, Hilco Real Estate does not have a
material interest adverse to the Debtor regarding the specific
matters for which it is to be retained.
The firm can be reached through:
Eric W. Kaup
Hilco Real Estate, LLC
5 Revere Drive, Suite 206
Northbrook, IL 60062
Tel: (847) 504-2463
Email: ekaup@hilcoglobal.com
About Roman Catholic Bishop of Oakland
The Roman Catholic Bishop of Oakland, a tax-exempt religious
organization, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-40523) on May 8,
2023. In the petition signed by Bishop Michael Charles Barber, the
Debtor disclosed $100 million to $500 million in both assets and
liabilities.
Judge William J. Lafferty oversees the case.
The Debtor tapped Foley & Lardner LLP as legal counsel and Alvarez
& Marsal North America, LLC as restructuring advisor. Kurtzman
Carson Consultants LLC is the Debtors' claims and noticing agent
and administrative advisor.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee tapped Lowenstein Sandler, LLP as bankruptcy counsel;
Burns Bair LLP as special insurance counsel; and Berkeley Research
Group, LLC as financial advisor.
BLH TOPCO: Case Summary & 30 Largest Unsecured Creditors
--------------------------------------------------------
Lead Debtor: BLH TopCo LLC
15305 Dallas Parkway, 12th Floor
Addison, TX 75001
Business Description: The Debtors are operators and franchisors of
locally themed, social gastrobars under the
"Bar Louie" brand. Bar Louie is an upscale
neighborhood bar and eatery known for a
relaxed atmosphere, handcrafted cocktails, a
well curated selection of local and regional
beers, high quality wines, and a robust
menu. The Bar Louie also feature a wide
variety of American food, including
shareable plates, burgers, and
sandwiches, with traditional and regional
influences. The Bar Louie brand focuses on
neighborhood-specific bars that cater to the
unique tastes of local demographics.
Established in 1991 in Chicago, Illinois,
the Debtors currently operate 31 locations,
franchise an additional 17, and employ
roughly 1,400 individuals across 19 states.
Bar Louie restaurants are situated in
various settings, such as lifestyle centers,
conventional shopping malls, event venues,
central business districts, and other unique
standalone locations. In May 2020, the
Debtors acquired the Bar Louie business
through a Section 363 sale during a previous
bankruptcy proceeding.
Chapter 11 Petition Date: March 26, 2025
Court: United States Bankruptcy Court
District of Delaware
Five affiliates that simultaneously filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
BLH TopCo LLC (Lead Case) 25-10576
BLH HoldCo LLC 25-10577
BLH Acquisition Co., LLC 25-10578
BLH Restaurant Franchises LLC 25-10579
BLH White Marsh LLC 25-10580
Judge: Hon. Craig T Goldblatt
Debtors'
Bankruptcy
Counsel
Counsel: Thomas J. Francella, Jr., Esq.
Mark W. Eckard, Esq.
RAINES FELDMAN LITTRELL LLP
824 North Market Street
Suite 805
Wilmington, DE 19801
Tel: (302) 772-5805
Email: tfrancella@raineslaw.com
meckard@raineslaw.com
Debtors'
Claims &
Noticing
Agent: BANKRUPTCY MANAGEMENT SOLUTIONS, INC.
D/B/A STRETTO
Lead Debtor's
Estimated Assets: $1 million to $10 million
Lead Debtor's
Estimated Liabilities: $50 million to $100 million
The petitions were signed by Leslie Crook as chief administrative
officer.
A full-text copy of the Lead Debtor's petition is available for
free on PacerMonitor at:
https://www.pacermonitor.com/view/6FXBBGY/BLH_TopCo_LLC__debke-25-10576__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. US Foods Dallas Food Vendor $1,819,159
9399 W. Higgins Road
Suite 500
Rosemont, IL 60018
Seth Okpetu
Tel: 847/268-541
Email: Seth.Okpetu@usfoods.com
2. Edward Don & Company Trade Vendor $590,639
9801 Adam Don Pkwy
Woodridge, IL 60517
John Fahey
Tel: 708/883-8362
Email: JohnFahey@don.com
3. Produce Alliance LLC Food Vendor $148,182
2275 Half Day Rd.
Suite 337
Bannockburn, IL 60015
Adam Silver
Tel: 847/302-2505
Email: adam.silver@bepproduce.com
4. SCP Northfield, LLC Rent $133,813
8340 Northfield Blvd.
#2600
Denver, CO 80238
Donald Cloutier
Tel: 303/375-5484
Email: dcloutier@stockdalecapital.com
5. Service Management Marketing $130,800
Group LLC
4049 Pennsylvania Ave.
Suite 203, PMB 1063
Kari Elassal
Tel: 347/790-6096
Email: kari.elassal@smg.com
6. Champion Management Trade Vendor $111,774
15455 Dallas Parkway
Suite 1350
Addison, TX 75001
Sofia Ferracuti
Tel: 874/449-7952
Email: sferracuti@championmgt.com
7. Fourth USA Inc. Professional $109,827
6504 Bridge Point Pkwy. Services
Ste 300
Austin, TX 78730
Ryan Carroll
Tel: 877/539-5156
Email: Ryan.Carroll@fourth.com
8. Antares, Inc. Services $107,773
320 South Canal Street
43rd Floor
Chicago, IL 60606
Michael Read
Tel: 312/889-9290
Email: Michael.read@antares.com
9. Opentable Inc. Professional $107,138
1 Montgomery St. Services
Suite 500
San Francisco, CA 94104
Sarah Barreto
Tel: 800/673-6822
Email: sbaretto@opentable.com
10. Dearborn Station Assoc Rent $86,338
II Partnership
47 W. Polk Street
Suite M11
Nicholas Novelle
Tel: 312/554-8100
Email: dearbornmgmt@gmail.com
11. Clean Method Trade Vendor $86,226
8409 Lee Hwy
Unit 826
Merrifield, VA 22116
Accounting
Tel: 571/451-0441
Email: accounting@cleanmethod.com
12. Sedgwick Claims Insurance $86,027
Management Services Inc.
PO Box 14155
Heidi Hall
Tel: 614/381-2525
Email: Heidi.Hall@sedgwick.com
13. Ogletree, Deakins, Nash, Professional $82,851
Smoak & Stewart P.C. Services
8117 Preston Road
Suite 500
Dallas, TX 75225
Victoria Vish
Tel: 214/313-2896
Email: victoria.vish@ogletree.com
14. Punchh Inc. Marketing $78,211
8383 Seneca Tpke
Ste 2
New Hartford, NY 13413
Holly Davis
Tel: 801/946-0673
Email: holly.davis@partech.com
15. Vestis Trade Vendor $77,665
2680 Palumbo Drive
Lexington, KY 40509
Whitney Miller
Tel: 859/576-1438
Email: whitney.miller@vestis.com
16. Restaurant 365 Services $77,046
500 Technology Dr.
Suite 200
Irvine, CA 92618
Trent Sconnely
Tel: 386/852-0286
Email: tsconnely@restaurant365.com
17. Shamrock Restaurant Services $76,197
Cleaning LLC
2541 N. Dale Mabry Hwy
Zachary Smith
Tel: 339/793-1426
Email: admin@shamrockrc.net
18. Sunwest Facility Services $73,589
Services
6226 Magnolia Ave.
Javier Vega
Tel: 213/291-8893
Email: javier@sunwestfs.com
19. Belmar Commercial Rent $72,646
Owner, LP
7337 W. Alaska Drive
Suite 200
Rudy Alberts
Tel: 267/454-1851
Email: rudy.alberts@bridge33capital.com
20. Restaurant Technologies, Inc. Food Vendor $71,901
2250 Pilot Knob Rd.
Ste 100 Mendota Heights, MN
Amanda Carter
Tel: 888/813-0507 X205
Email: aemerson@rti-inc.com
21. Federal Realty Rent $70,877
Investment Trust
909 Rose Ave.
Suite 200
North Bethesda, MD 20852
Waqar Hussain
Tel: 301/998-8323
Email: Whussain@federalrealty.com
22. Grant Thornton LLP Professional $68,900
500 N. Akard Services
Suite 1200
Dallas, TX 75201
Patrick Grubb
Tel: 214/561-2303
Email: Pat.Grubb@us.gt.com
23. Securitas Technology Security $68,828
Corporation
221 Shore Court
Burr Ridge, IL 60527
Lisa Green
Tel: 317/754-6652
Email: lisa.green@securitas.com
24. NPP Development Rent $67,358
One Patriot Place
Foxborough, MA 02035
Leigh Bryer
Tel: 508/203-2124
Email: LeighB@TheKraftGroup.com
25. Ecolab Inc. Supplies $67,262
655 Lone Oak Drive
Eagan, MN 55121
Erik Hager
Tel: 651/795-4354
Email: erik.hager@ecolab.com
26. DirectTV Services $65,270
2230 E. Imperial Hwy
El Segundo, CA 90245
Susan Berg
Tel: 310/426-0471
Email: susan.berg@directv.com
27. E&P At East Brunswick Rent $61,960
250 Civic Center Drive
Suite 500
Columbus, OH 43215
Sheila Hutchins
Tel: 614/744-2040
Email: SHutchins@castoinfo.com
28. Service Channel.com, Inc. Trade Vendor $60,985
30 Patewood Drive
Building 2, Suite 350
Greenville, SC 29615
Kristi Barrett
Tel: 475/655-0630
Email: kbarrett@servicechannel.com
29. Unlimited Retail Trade Vendor $60,357
Services, Inc.
555 Broadhollow Rd
Suite 202
Melville, NY 11747
Lisa Pesce LaFata
Tel: 866/777-8010
Email: LL@unlimitedrs.com
30. La Cantera Retail LP Rent $58,333
Shops
350 N. Orleans St.
Suite 300
Chicago, IL 60654
Raisa Lakirovich
Tel: 312/960-6381
Email: Raisa.Lakirovich@brookfieldpr
opertiesretail.com
BLUE APPLE: Seeks to Hire Ken Rosen Advisors as Bankruptcy Counsel
------------------------------------------------------------------
Blue Apple Books, LLC seeks approval from the U.S. Bankruptcy Court
for the District of New Jersey to employ Ken Rosen Advisors PC as
counsel.
The firm will render these services:
(a) advise and represent the Debtor as New Jersey counsel with
respect to all matters and proceedings in this Chapter 11 case and
prepare legal papers;
(b) assist the Debtor in all bankruptcy issues which may arise
in the administration of the its affairs;
(c) assist the Debtor with the preparation of and confirmation
of a plan of reorganization;
(d) assist the Debtor in the evaluation and prosecution of
claims and litigation; and
(e) perform all other necessary legal services and provide all
other necessary legal advice to the Debtor in connection with this
Chapter 11 case and its business operations.
The firm will be billed for its actual, reasonable and necessary
out-of-pocket disbursements incurred in connection with this
Chapter 11 case. Kenneth A. Rosen, Esq. is the only attorney
employed by the firm. Paralegals will be billed at $100 per hour.
Mr. Rosen 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:
Kenneth A. Rosen, Esq.
Ken Rosen Advisors PC
80 Central Park West 3B
New York, NY 10023
Telephone: (973) 493-4955
Email: ken@kenrosenadvisors.com
About Blue Apple Books
Blue Apple Books, LLC filed Chapter 11 petition (Bankr. D.N.J. Case
No. 25-11469) on February 13, 2025, listing between $100,001 and
$500,000 in assets and between $500,001 and $1 million in
liabilities.
Judge Stacey L. Meisel presides over the case.
Kenneth Alan Rosen, Esq., at Ken Rosen Advisors, PC represents the
Debtor as legal counsel.
BOY SCOUTS: Claimants' Appeal to Fix Chapter 11 Opt-In Error Denied
-------------------------------------------------------------------
Clara Geoghegan of Law360 Bankruptcy Authority reports that a
Delaware federal judge upheld a bankruptcy court ruling barring
childhood sexual abuse survivors in the Boy Scouts' Chapter 11 case
from reversing their mistaken selection of a faster, lower payout
for their claims.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC, as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
The Debtors obtained confirmation of their Third Modified Fifth
Amended Chapter 11 Plan of Reorganization (with Technical
Modifications) on September 8, 2022. The Order was affirmed on
March 28, 2023. The Plan was declared effective on April 19, 2023.
The Hon. Barbara J. House (Ret.) has been appointed as trustee of
the BSA Settlement Trust.
BROOKFIELD PROPERTY: S&P Downgrades ICR to 'BB-', Outlook Stable
----------------------------------------------------------------
S&P Global Ratings lowered the issuer credit ratings on both
Brookfield Property Partners L.P. (BPY) and Brookfield Properties
Retail Holding LLC (BPR; a core subsidiary within BPY's group
structure) to 'BB-' from 'BB'.
S&P said, "We lowered the issue-level rating on BPY's unsecured
notes to 'B' from 'BB-' and assigned a '6' recovery rating (rounded
estimate: 0%) to the notes.
"We affirmed the 'B+' issue-level rating on BPR's senior secured
notes and assigned a '5' recovery rating (rounded estimate: 10%)
"We lowered our rating on the company's preferred shares to 'B-'
from 'B' to reflect increased subordination risk.
In addition, we assigned a 'B+' issue-level rating to BPR's
proposed senior secured term loan B with a '5' recovery rating
(rounded estimate: 10%),
"The stable outlook reflects our expectation that operating
performance will remain positive over the next year, with
performance at retail assets offsetting some residual pressure to
office assets. We project BPY will keep credit metrics at weaker
levels than our ranges for other highly leveraged issuers, with S&P
Global Ratings-adjusted debt to EBITDA in the 15x area and FCC at
or below 1x.
"We expect retail operating performance to remain robust in 2025.
This will be supported by high occupancy and solid leasing spreads.
BPY's retail portfolio comprises 100 assets, most of them at
subsidiary BPR. These assets are fully consolidated into BPY's
financials, and we view them as a core part of BPY's strategy. As a
result, our issuer credit rating on BPR is the same as our issuer
credit rating on BPY. Retail net operating income (NOI) contributes
22.1% of consolidated NOI at BPY, but about 32% of proportional
revenue (the International Financial Reporting Standards financials
fully consolidate BPY's limited partner investments). Retail
occupancy within the BPY consolidated portfolio (51 properties)
improved 30 basis points (bps) to 94% in 2024, offset by a 10-bps
decline within the unconsolidated portfolio (49 properties) to
96.6%. Pandemic-related pressure reduced sales per square foot and
in-place rent per square foot in 2020-2021, but both have since
steadily improved to $747 and $65.49, respectively, in 2024."
Over the past year, retail fundamentals have exceeded expectations,
with higher occupancy, positive leasing and re-leasing spreads, and
fewer retailer bankruptcies (many emerged from the COVID-19
pandemic with better positioned balance sheets). Retailers are
prioritizing in-person shopping as a vital part of their supply
chains to support more profitable omnichannel initiatives, such as
buying online, picking up in store, and click-and-collect methods.
Retail sales have a lower return rate and less expensive processing
and handling costs. S&P said, "We continue to expect class A malls
to outperform class B and C malls in terms of retail sales and
leasing velocity. We expect these trends to remain in 2025 and BPR
to benefit from its large scale and relationship with Brookfield
Corp. (BN) which gives it an edge in attracting retailers and
negotiating favorable mall leases. We will continue to monitor the
macroeconomic landscape while higher-for-longer interest rates
could erode consumer spending."
S&P said, "We expect office operating performance to gradually
recover, but remain below pre-pandemic levels. The improvement over
the next year comes after occupancy hit an inflection point in
2024. As of Dec 31, 2024, BPY's consolidated office portfolio was
84.9% occupied (up from 84.1% in 2023) with NOI down approximately
5.6%. We largely attribute this to disposition activity (BPY was
active on the disposition front via five consolidated and one
unconsolidated office partially offset by lease commencements at
slightly higher rental rates. BPY's unconsolidated office portfolio
fared slightly better, with 88.2% occupancy (up from 87.9% in
2023). We expect Brookfield's core office properties (66 of 124 are
in 16 premier office and mixed-use complexes in key global markets)
to continue to perform better than non-core properties. Core office
occupancy was 94.3% as of Dec. 31, 2024, versus 95.1% in 2023.
Office comprises 20.7% of BPY's consolidated NOI, but approximately
38% of revenue on a proportional basis.
"We expect LP investments to remain an important part of BPY's
strategy. It targets real estate investment opportunities across a
wide array of asset classes, including office, retail, multifamily,
logistics, hospitality, triple net leased, student housing, and
manufactured housing. Unlike BPY's core real estate assets, which
focus on cash flow generation, the aim of these funds is more
opportunistic: properties with upside potential that can be
monetized over a defined period at targeted returns in the 20%
area. The company was active across the leasing and acquisition
front regarding its opportunistic funds in 2024, with notable
transactions in the student housing, logistics, and multifamily
space while monetizing mature assets that reached their potential.
As a result, BPY's NOI from limited partner investments increased
$185 million in 2024 (excluding the impact of the deconsolidation
of BSREP IV). We note that while these investments account for the
largest portion of consolidated NOI (57% in 2024) per BPY's
consolidated financials due to control, these funds contribute
about 26% of the company's revenue when viewed from a pro rata
economic perspective. We expect this contribution to remain similar
on a proportional basis over the next few years.
"Despite recent deleveraging at BPR, we do not expect material
improvement in credit metrics in 2025 at BPY. BPY successfully
refinanced a material number of mortgages and repaid some debt to
improve its balance sheet modestly in 2024, but its balance sheet
remains highly leveraged. As a result, we expect the company to
operate with debt to EBTIDA above the 15x area over the next year.
In addition, FCC remains under pressure, ending the year below 1x
on our adjusted metrics. We do not expect material improvement on
our adjusted basis over the next year as this would require a
material change in outstanding debt at BPY, although we acknowledge
changes in interest rates alleviates some pressure on floating rate
debt.
"BPY's relationship with BN (A-/stable/A-1) enhances its credit
profile. We view BPY as moderately strategic to the BN group. We
believe BN would provide financial support under some circumstances
and could help facilitate refinancing efforts, as has been done
historically. BPY is BN's main vehicle for real estate investments
and its largest investment vehicle. This provides a one-notch
uplift to the stand-alone credit profile for BPY.
"We assigned a 'B+' rating with a '5' recovery rating to BPR's
proposed term loan B. Brookfield plans to issue a new three-year,
$700 million revolving credit facility due in 2028 and a five-year,
$885 million term loan B due in 2030 to refinance the revolving
credit facility and term loan B due in 2025."
This transaction addresses the majority of 2025 recourse
maturities, but liquidity pressure remains at BPY in future years.
BPR has successfully monetized assets over the past year, with the
recent sale of partial interests in six properties for $665 million
in cash contributions. It utilized proceeds to pay down some of the
legacy term loan B and secured bonds. S&P said, "We expect the
company to complete additional transactions in 2025, which should
reduce mortgage balances, also targeting proceeds to the term loan
and secured bond paydowns. We generally do not consider
nonrecourse, property-level secured debt as a use of liquidity for
real estate companies. That said, BPY's balance sheet contains
material mortgages that we believe it will need to continue to
address. We perform our liquidity analysis at the BPY level. Over
the past few years, the company monetized assets to bridge the gap
for distributions, which we expect to occur in future years, and
therefore it is reliant on refinancing to address upcoming
maturities."
S&P said, "The stable outlook reflects our expectation for
operating performance to remain healthy over the next year, with
performance at retail assets offsetting some residual pressure to
office assets, especially at noncore assets. We project
Brookfield's credit metrics to remain at weaker levels than our
ranges for other highly leveraged issuers, with S&P Global
Ratings-adjusted debt to EBITDA above 15x and FCC sustained at or
below 1x."
S&P could lower its ratings on BPY one notch if:
-- It fails to refinance its upcoming recourse maturities well in
advance, pressuring S&P's view of the company's liquidity; or
-- Operating performance deteriorates, with occupancy in the core
office segment weakening to the low-80% area or profitability
exhibiting volatility and comparing unfavorably to peers, leading
to a less favorable view of the company's business prospects.
S&P could raise its ratings on BPY one notch if:
-- It bolsters liquidity, potentially through asset sales, such
that upcoming recourse maturities don't threaten our liquidity
assessment;
-- Operating performance improves modestly, with a recovery to
office occupancy; and
-- Key credit metrics stabilize or strengthen, with FCC maintained
comfortably above 1x.
CALIFORNIA PREMIER: Hires Krycler Ervin Taubman as Accountant
-------------------------------------------------------------
California Premier Office Solutions, Inc. seeks approval from the
U.S. Bankruptcy Court for the Southern District of California to
hire Krycler, Ervin, Taubman & Kaminsky as accountant.
The firm will render these services:
a. reconcile and record bank transactions on a monthly basis;
b. record and reconcile revenues processed to ensure accuracy
in financial reporting;
c. record adjusting monthly entries for payroll reports
prepared by the third-party payroll provider and submitted by the
Debtor;
d. prepare and record month-end and year-end adjustments to
maintain accurate financial records;
e. "Catch up" bookkeeping data entry for the period from Jan
1, 2024, through Jan 31, 2025, to bring financial records up to
date;
f. generate monthly financial statements and prepare Monthly
Operating Reports beginning February 1, 2025, for filing with the
Bankruptcy Court; and
g. provide accounting advisory services to improve internal
controls and financial oversight.
The firm will receive a flat rate of $1,000 per month. The firm
will charge for services that start for the period from Feb 1,
2025, going forward. The firm will also receive a one-time fee of
$4,500 for bookkeeping services.
Yelena L. Kaminsky, a principle of the Krycler Ervin Taubman
Kaminsky, assured the court that her firm is a "disinterested
person" within the meaning of 11 U.S.C. 101(14).
The firm can be reached through:
Yelena L. Kaminsky, CPA
Krycler Ervin Taubman Kaminsky
15303 Ventura Blvd Suite 1040
Sherman Oaks, CA 91403
Phone: (818) 995-1040
About California Premier Office Solutions
California Premier Office Solutions, Inc., is a business
specializing in providing office solutions, which may include
services such as office supplies, equipment leasing, and workspace
management. The company aims to deliver comprehensive solutions to
meet the diverse needs of its clients, ranging from small
businesses to larger enterprises.
California Premier Office Solutions filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Cal. Case No.
24-03230) with $1,503,578 in assets and $2,081,389 in liabilities.
John K. Green, president signed the petition.
Judge J. Barrett Marum. presides over the case.
Shana Y. Stark, Esq., represents the Debtor as bankruptcy counsel.
CALIFORNIA PROUD: Seeks Subchapter V Bankruptcy in North Carolina
-----------------------------------------------------------------
On March 24, 2025, Carolina Proud Investment Group LLC filed
Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern
District of North Carolina. According to court filing, the
Debtor reports $797,689 in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
About Carolina Proud Investment Group LLC
Carolina Proud Investment Group LLC's business involves owning and
managing a portfolio of residential and commercial properties,
including rental units and vacant land, across multiple locations
in North Carolina and Ohio.
Carolina Proud Investment Group LLC sought relief under Subchapter
V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case
No. 25-01063) on March 24, 2025. In its petition, the Debtor
reports total assets of $1,035,550 and total liabilities of
$797,689.
Honorable Bankruptcy Judge Pamela W. McAfee handles the case.
The Debtor is represented by C. Scott Kirk, Esq. at SCOTT KIRK.
CANADIAN UTILITIES: Egan-Jones Retains BB Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on March 14, 2025, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Canadian Utilities Limited. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Calgary, Canada, Canadian Utilities Limited
conducts operations in electrical utility services, independent
power production, and retail gas and electricity marketing.
CAPSTONE COMPANIES: Plans CRM System With Coppermine Under MOU
--------------------------------------------------------------
Capstone Companies, Inc. announced that the Company and Coppermine
Ventures, LLC, a private Maryland company that operates year-round
health, fitness and social activities facilities in the State of
Maryland, entered into a Memorandum of Understanding stating their
intent to produce a plan for development of an online customer
registration and management application (Application) by Capstone
for Coppermine organization's 20 Facilities.
The development of the Application is subject to acceptance of the
Plan, signing of a definitive application development agreement
with Capstone and funding of development fees and costs by
Coppermine. The companies expect the completion of the Plan by May
31, 2025, and hope to implement a CRM Application in 2025.
"The Memorandum of Understanding (MOU) is another step forward in
the health, fitness and social activities business (HFS business)
by Capstone and in its relationship with Coppermine. Besides
improving Coppermine's operations, a functioning Application could
potentially be licensed by Capstone to third party operators in the
health, fitness and social activities industry as well as be used
in any future HFS business facilities developed or acquired by our
company," said Stewart Wallach, Capstone's Chairman of the Board of
Directors.
Coppermine has provided working capital funding for Capstone's
basic corporate maintenance overhead through the third fiscal
quarter of 2025 and Coppermine's founder, owner and manager is
Alexander Jacobs, who is also Capstone's Chief Executive Officer
and a director.
Coppermine is the managing company for a HFS business that operates
20 HFS business facilities in State of Maryland that annually
services estimated 35,000 customers. Coppermine's offerings include
pickle ball, padel, field sports (e.g. soccer, football, lacrosse),
basketball, and swimming as well as food-drink gardens or sports
bars and live entertainment.
About Capstone Companies Inc.
Deerfield Beach, Fla.-based Capstone Companies, Inc. is a public
holding company organized under the laws of the State of Florida.
The Company is a designer, manufacturer and marketer of consumer
products that are designed to simplify daily living through
technology.
Margate, Fla.-based Assurance Dimensions, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has incurred
recurring operating losses, has incurred negative cash flows from
operations and has an accumulated deficit. These and other factors
raise substantial doubt about the Company's ability to continue as
a going concern.
As of September 30, 2024, Capstone Companies had $1,378,848 in
total assets, $4,102,475 in total liabilities, and $2,723,627 in
total stockholders' deficit.
CAREPOINT HEALTH: Mediator Deems Ch. 11 Confirmation Deal Futile
----------------------------------------------------------------
Clara Geoghegan of Law360 Bankruptcy Authority reports that a
mediator in the New Jersey hospital operator's Chapter 11 case told
a Delaware bankruptcy judge that efforts to bridge the gap on
holdout objections to its reorganization plan have stalled.
About CarePoint Health
CarePoint Health brings quality, patient-focused health care to
Hudson County. Combining the resources of three area hospitals,
Bayonne Medical Center, Christ Hospital in Jersey City, and Hoboken
University Medical Center, CarePoint Health provides a new approach
to deliver health care that puts the patient front and center.
CarePoint Health leverages a network of top doctors, nurses, and
other medical professionals whose expertise and attentiveness work
together to provide complete coordination of care, from the
doctor's office to the hospital to the home. Patients benefit from
the expertise and capabilities of a broad network of leading
specialists and specialized technology. At CarePoint Health, all
medical professionals emphasize preventive medicine and focus on
educating patients to make healthy life choices. For more
information on its facilities, partners and services, visit
www.carepointhealth.org.
CarePoint Health Systems Inc., doing business as Just Health
Foundation, and its affiliates filed voluntary petitions for relief
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.
Del. Lead Case No. 24-12534) on Nov. 3, 2024, with up to $1 million
in assets and up to $50,000 in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Dilworth Paxson LLP as legal counsel, Ankura
Consulting as financial advisor, and Epiq Corporate Restructuring,
LLC as claims and noticing agent and administrative advisor.
CARNIVAL CORP: Egan-Jones Hikes Senior Unsecured Ratings to B-
--------------------------------------------------------------
Egan-Jones Ratings Company on March 19, 2025, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Carnival Corporation to B- from CCC+. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Miami, Florida, Carnival Corporation owns and
operates as a cruise ships company.
CARROLLCLEAN LLC: Seeks to Hire Plant & Machinery as Auctioneer
---------------------------------------------------------------
CarrollCLEAN, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Texas to employ Plant & Machinery, Inc. as
auctioneer.
The Debtor needs an auctioneer to sell, at public auction, all or
substantially all of its machinery and equipment.
The firm will receive a commission of 15-18 percent buyer's premium
plus reimbursement for costs incurred.
Russell Beasley, an auctioneer at Plant & Machinery, 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:
Rusell Beasley
Plant & Machinery Inc.
1304 Langham Creek Drive, Suite 454
Houston, TX 77218
Telephone: (713) 691-4401
Facsimile: (713) 672-7905
Email: pmi@pmi-auction.com
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.
CDF INC: Seeks Court Approval to Hire McGraw Realty as Realtor
--------------------------------------------------------------
CDF, Inc. seeks approval from the U.S. Bankruptcy Court for the
Southern District of Alabama to employ McGraw Realty as realtor.
The Debtor needs a realtor to sell its real property located at 208
E. 46th St., Tulsa, Oklahoma.
The firm will receive a commission of 6 percent of the gross amount
of any sale.
Lindsay Farrar, a realtor at McGraw Realty, 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:
Lindsay D. Farrar
McGraw Realty
4105 S. Rockford Ave.
Tulsa, OK 74105
Telephone: (918) 592-6000
Email: lfarrar@mcgrawok.com
About CDF Inc.
CDF Inc. owns two properties: one located at 208 E. 46th Street,
Tulsa, OK 74105, and the other at 4227 Woodglen Trace, Orange
Beach, AL 36561. The combined value of these properties is
$480,000.
CDF Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Ala. Case No. 25-10197) on January 24, 2025. In its
petition, the Debtor reports total assets of $974,177 and total
liabilities of $2,297,454.
Honorable Bankruptcy Judge Jerry C. Oldshue handles the case.
J. Willis Garrett, III, Esq., at Galloway, Wettermark & Rutens, LLP
serves as the Debtor's counsel.
CEC ENTERTAINMENT: Moody's Rates New $660MM Sr. Secured Notes 'B3'
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Moody's Ratings assigned a B3 rating to CEC Entertainment, LLC's
(CEC Entertainment) proposed $660 million backed senior secured
notes (2030 notes). All other ratings of CEC Entertainment remain
unchanged, including the company's B3 corporate family rating,
B3-PD probability of default rating, and B3 rating on its existing
backed senior secured notes due 2026 (2026 notes). The outlook
remains stable.
Proceeds of the proposed 2030 notes will be used to refinance the
company's 6.75% backed senior secured notes due May 1, 2026 and pay
related fees and expenses. The 2026 notes will be withdrawn upon
completion of the refinancing.
While the transaction will extend the company's debt maturity
profile, it will result in higher interest costs, pressuring its
already weak interest coverage. Pro forma for the refinancing,
Moody's-adjusted EBIT/Interest will fall slightly below 1x from
around 1.0x for the last twelve months ended October 2024. However,
pro forma Moody's-adjusted Debt/EBITDA will marginally increase,
but remain moderate, at less than 5x. In addition, free cash flow
is expected to turn solidly positive because the company completed
its unit remodeling program in 2024, resulting in significantly
lower capital expenditure needs beginning in 2025.
RATINGS RATIONALE
CEC Entertainment's B3 CFR reflects the company's moderate
leverage, fairly stable demand for children's entertainment
gatherings, its meaningful scale in terms of number of locations
and good brand awareness from its "Chuck E. Cheese" specialty
venues. The rating is also supported by very strong margins versus
other rated restaurant operators driven by a high mix of
entertainment and gaming offerings. Because this remodeling program
is now complete, Moody's expects free cash flow to turn solidly
positive beginning in 2025. The rating also reflects the company's
modest Moody's adjusted EBIT/interest coverage, as well as some
seasonality in earnings and geographic concentration in a few
states. For the last-twelve-month (LTM) period ended October 2024,
Moody's pro forma adjusted debt/EBITDA was 4.7x and EBIT/interest
coverage was 0.9x.
The stable outlook reflects Moody's expectations that operating
performance and credit metrics will gradually improve over the next
12-18 months, driven by continued demand for children's
experiential gatherings and good returns from its newly remodeled
stores alongside game enhancements and other new offerings. Moody's
also expects the company to maintain at least adequate liquidity,
including the maturity extension related to the proposed
refinancing and positive free cash flow following the completion of
the company's planned store remodels in 2024.
The B3 rating assigned to CEC Entertainment's 2030 senior secured
notes reflects its equal position in the capital structure with its
unrated $100 million senior secured revolver and that its capital
structure consists of only one class of debt. The 2030 notes and
revolver are fully and unconditionally guaranteed by CEC
Entertainment Holdings II, LLC, and each of CEC Entertainment's
wholly-owned domestic restricted subsidiaries, and are secured by
first priority liens on substantially all assets of CEC
Entertainment and the guarantors.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Ratings could be upgraded should operational improvement be
sustained to a level where Moody's-adjusted debt/EBITDA is
maintained below 5.5x and EBIT/interest coverage above 1.5x. An
upgrade would also require good liquidity including positive free
cash flow and an extended debt maturity profile via completion of
its proposed refinancing.
Ratings could be downgraded if earnings were to deteriorate or
liquidity were to weaken, including inability to generate positive
free cash flow. Quantitatively, a downgrade could occur should
Moody's adjusted EBIT/interest coverage be sustained below 1.0x.
Headquartered in Irving, Texas, CEC Entertainment, LLC owns,
operates and franchises 563 Chuck E. Cheese and 109 Peter Piper
Pizza locations that provide family-oriented dining and
entertainment in 45 states and 17 foreign countries as of January
2025. The company owns and operates 509 venues and the remainder
are franchised. CEC is owned by a group that includes prepetition
debt lenders. Revenue for the twelve month period ended January
2025 is expected to be around $870 million.
The principal methodology used in this rating was Restaurants
published in August 2021.
CENTER FOR SPECIAL: Committee Taps Gilbert Garcia Group as Counsel
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The official committee of unsecured creditors appointed in the
Chapter 11 case of the Center for Special Needs Trust
Administration, Inc. seeks approval from the U.S. Bankruptcy Court
for the Middle District of Florida to employ Gilbert Garcia Group,
PA as special counsel.
The firm will provide these services:
(a) establish a non-profit organization as a subsidiary or
standalone entity and register the same with the State of Florida;
(b) draft governing documents for the non-profit organization;
and
(c) assist with registering the non-profit organization.
The firm will be paid at these fees:
(a) flat fee of $3,000;
(b) flat fee of $1,500 to initially create the escrow account
and agreement
(c) 2 percent of all gross donations received and processed
for the benefit of the estate's beneficiaries, not to exceed $50
per donation.
The firm's counsel and staff will be paid at these hourly rates:
Attorney $350
Paralegal $150
Michelle Garcia Gilbert, Esq., a managing partner at Gilbert Garcia
Group, 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:
Michelle Garcia Gilbert, Esq.
Gilbert Garcia Group PA
2313 West Violet Street
Tampa, FL 33603
Telephone: (813) 638-8920
Email: mgilbert@gilbertgrouplaw.com
About The Center for Special Needs Trust Administration
The Center for Special Needs Trust Administration, Inc. filed
Chapter 11 petition (Bankr. M.D. Fla. Case No. 24-00676) on Feb. 9,
2024, with $100 million to $500 million in both assets and
liabilities.
Judge Roberta A. Colton oversees the case.
Scott A. Stichter, Esq., at Stichter, Riedel, Blain & Postler, PA
is the Debtor's legal counsel.
On March 4, 2024, the U.S. Trustee appointed an official committee
of unsecured creditors in this Chapter 11 case. The committee
tapped Underwood Murray, PA as bankruptcy counsel and Gilbert
Garcia Group, PA as special counsel.
CENTURY ALUMINUM: Moody's Ups CFR to 'B2', Outlook Remains Positive
-------------------------------------------------------------------
Moody's Ratings upgraded Century Aluminum Company's ("Century
Aluminum" or "Century") corporate family rating to B2 from B3, its
probability of default rating to B2-PD from B3-PD and its senior
secured notes rating to B3 from Caa1. The Speculative Grade
Liquidity rating (SGL) was maintained at SGL-2. The ratings outlook
remains positive.
"The upgrade of Century Aluminum's ratings and the positive outlook
reflects Moody's expectations for robust operating earnings and
cash flows and strengthening credit metrics over the next 12-18
months supported by the benefit of tax credits, higher Midwest
premiums driven by increased aluminum import tariffs and improved
aluminum product pricing," said Michael Corelli, Senior Vice
President at Moody's Ratings.
RATINGS RATIONALE
Century Aluminum's B2 corporate family is supported by its strong
market position in the US as the largest domestic primary aluminum
producer, but also incorporates its relatively high cost position
and modest scale versus other global aluminum companies. Its
relatively high cost structure makes the company's earnings and
cash flows very sensitive to incremental changes in aluminum
prices, and this along with periodic operational issues, have led
to wide historical fluctuations in its operating performance, cash
flows and credit metrics. Although, Moody's anticipates strong
operating results and cash flows and materially strengthening
credit metrics over the next 12-18 months supported by tax credits,
higher Midwest premiums driven by increased aluminum import tariffs
and improved aluminum product pricing. Century Aluminum's credit
profile also considers the stability of the company's offtake
arrangements, with most of its volumes under contract with Glencore
plc (A3 stable), which owns 42.9% of Century's outstanding common
stock. The credit profile also reflects the ESG risks faced by
primary aluminum producers. These risk exposures are tempered by
the growing share of low-carbon aluminum products in the company's
portfolio and aluminum's role in lightweighting and carbon
transition investments such as electric vehicles and renewable
energy infrastructure.
Century's operating performance materially improved for the second
consecutive year in 2024 with adjusted EBITDA of $218 million
versus $133 million in 2023. This was due to favorable raw material
price realizations related to substantially higher alumina prices,
incremental Inflation Reduction Act (IRA) manufacturing production
credits, and favorable power price realizations. These factors more
than offset unfavorable volume and product mix and additional
operating expenses. The company consumed more than $100 million of
cash in 2024 despite the improved operating results as it accrued
about $150 million of tax credits, which are anticipated to be paid
by the federal government during 2025.
Century should achieve another significant improvement in operating
earnings in 2025 as it benefits from substantially higher Midwest
premiums driven by increased aluminum import tariffs related to an
increase in the Section 232 tariffs on aluminum from 10% to 25%
along with the elimination of all exemptions. It will also benefit
from higher LME aluminum prices which are currently well above the
average level in 2024. This will more than offset the impact of
less favorable raw material price realizations and a lower European
Duty Paid Premium. Moody's anticipates that Century's full year
adjusted EBITDA will be around $300 million versus $218 million
generated in 2024 as the company's product prices rise on a lagged
basis. This projection assumes an LME price of about $2,525 per
metric ton for the year, relatively stable regional premiums, no
operational issues and that sectors reliant on aluminum products
don't experience lower demand due to higher aluminum costs.
Operating results will remain volatile as each $100 per metric ton
change in the LME price impacts full year adjusted EBITDA by about
$46 million and each one cent change in the Midwest premium by
around $8.5 million.
Century is expected to generate strong free cash flow as it
benefits from strong earnings and receives payment for accrued tax
credits. Moody's anticipates the company will use a portion of that
cash to pay down debt. Therefore, the company's credit metrics will
be strong for the rating with an adjusted leverage ratio
(debt/EBITDA) of only about 2.0x and interest coverage
(EBIT/Interest) around 4.0x. Nevertheless, the assigned rating
incorporates the company's high-cost position, inconsistent
operating history, volatile historical earnings and potential
significant investment in a new smelter.
The company may build up its cash balance in case it decides to
pursue the restart of the 25% of its Mt. Holly production facility
that is currently idled or an investment in a domestic aluminum
smelter. The company was selected by the US Department of Energy
Office of Clean Energy Demonstrations for up to $500 million in
Bipartisan Infrastructure Law and Inflation Reduction Act funding
to build a new green aluminum smelter as part of the Industrial
Demonstrations Program. The government grant will only cover a
portion of this potential investment. Moody's will evaluate the
impact of this project on the company's credit profile when/if it
announces that it is definitely moving forward and how it will be
funded.
Century's SGL-2 speculative grade liquidity rating considers
Moody's expectations for the company's liquidity position to
strengthen in 2025 as it generates substantial positive free cash
flow and for it to maintain a good liquidity profile. The company
had about $245.3 million of liquidity as of December 2024 supported
by a cash balance of $32.9 million and availability of about $212.4
million under several credit facilities, including about $132.4
million available in aggregate under the US and Iceland revolving
credit facilities and $80 million on the $90 million Vlissingen
credit facility with Glencore. The $250 million US ABL facility has
a springing financial covenant that requires the company to
maintain a fixed charge coverage ratio of at least 1x when
availability is less than or equal to $25 million or 10% of the
borrowing base but not less than $17.85 million ($65.6 million
available as of December 2024). Century should remain in compliance
with all covenants in 2025.
The B3 rating on the $250 million senior secured notes reflects
their weaker position in the capital structure behind the company's
$250 million US and $100 million Iceland revolving credit
facilities (both unrated). The secured notes benefit from a second
priority lien on all domestic assets, stock of domestic
subsidiaries, and 100% of stock of foreign subsidiaries. Because
the company does not currently have domestic first lien funded debt
other than the ABL, the secured notes effectively have a first lien
claim on the domestic assets not pledged to the ABL. The Company
also has $86.3 million of convertible notes (not rated) due 2028
that are effectively junior to the secured debt. The notes are
redeemable after May 6, 2025.
The positive ratings outlook reflects Moody's expectations for
improved operating results and cash flows that will result in near
term metrics that are strong for the rating.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of Century's ratings could be considered if the company
reduces its debt level so that it can better withstand volatility
in aluminum prices during economic downturns, or if it sustains an
improved level of earnings and cash flows and demonstrates
operational consistency, and provides more clarity on the potential
green smelter investment. Quantitatively, the ratings could be
upgraded if the company sustains through various aluminum price
cycles an EBIT margin of at least 6.5%, interest coverage
(EBIT/interest) of 5.0x and a leverage ratio (debt/EBITDA) below
3.5x.
The ratings could be downgraded if EBIT margins are sustained below
3.5%, interest coverage at less than 2.0x and leverage above 4.5x,
or if liquidity meaningfully deteriorates.
Headquartered in Chicago, Illinois, Century is a primary aluminum
producer in North America and Iceland with ownership interests in
four aluminum production facilities. The company also produces
carbon anodes at its Century Vlissingen facility in the Netherlands
and has a 55% ownership interest in a joint venture that owns the
Jamalco bauxite mining operation and alumina refinery in Jamaica.
Revenues for the twelve months ended December 31, 2024, were about
$2.2 billion. Glencore plc and its affiliates own 42.9% of
Century's outstanding common stock.
The principal methodology used in these ratings was Steel published
in November 2021.
CES KIMBERLINA: Hires Kelley Kaplan & Eller as Legal Counsel
------------------------------------------------------------
CES Kimberlina Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to hire Kelley Kaplan &
Eller, PLLC as general counsel.
Kelley Kaplan & Eller will provide these services:
(a) advise the Debtor with respect to its powers and duties;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents necessary in the administration of
the case;
(d) protect the interest of the Debtor in all matters pending
before the court;
(e) represent the Debtor in negotiation with its creditors in
the preparation of a plan.
The firm will be paid at these hourly rates:
Attorneys $525
Paralegals $155
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer of $27,500
from the Debtor.
Craig Kelley, Esq., an attorney at Kelley Kaplan & Eller, 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 I. Kelley, Esq.
Kelley Kaplan & Eller, PLLC
1665 Palm Beach Lakes Blvd., Suite 1000
West Palm Beach, FL 33401
Telephone: (561) 491-1200
Facsimile: (561) 684-3773
Email: bankruptcy@kelleylawoffice.com
About CES Kimberlina Inc.
CES Kimberlina Inc. is in the business of producing renewable
energy from solid waste, utilizing advanced power generation
technologies such as oxy-fuel combustion and carbon capture
systems. The Company operates cutting-edge research facilities,
including the Kimberlina Power Plant, to develop innovative
solutions that improve energy efficiency and reduce emissions.
CES Kimberlina Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11691) on March 3,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Sheri Bluebond handles the case.
The Debtor is represented by Charles Shamash, Esq. at CACERES &
SHAMASH, LLP.
CES KIMBERLINA: Seeks to Tap Fierstadt Law Group as Special Counsel
-------------------------------------------------------------------
CES Kimberlina, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ Fierstadt Law
Group, LLP as special real estate and corporate counsel.
The firm will provide these services:
(a) assist the Debtor in dealing with Kern County Tax
Collector regarding tax assessments;
(b) assist the Debtor with any documentation or other services
that may be necessary to further its goal of developing the
property towards its goal of producing clean energy; and
(c) assist the Debtor in complying with any corporate
formalities as may be necessary.
The firm's attorney will be paid at an hourly rate of $525.
Jack Fierstadt, Esq., an attorney at Fierstadt Law Group, 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:
Jack A. Fierstadt, Esq.
Fierstadt Law Group, LLP
1055 E. Colorado Blvd., Suite 500
Pasadena, CA 91106
Telephone: (626) 449-7379
Facsimile: (626) 585-8742
Email: jack@fierstadtlaw.com
About CES Kimberlina Inc.
CES Kimberlina Inc. is in the business of producing renewable
energy from solid waste, utilizing advanced power generation
technologies such as oxy-fuel combustion and carbon capture
systems. The Company operates cutting-edge research facilities,
including the Kimberlina Power Plant, to develop innovative
solutions that improve energy efficiency and reduce emissions.
CES Kimberlina Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11691) on March 3,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Sheri Bluebond handles the case.
The Debtor tapped Charles Shamash, Esq., at Caceres & Shamash, LLP
as bankruptcy counsel and Jack A. Fierstadt, Esq., at Fierstadt Law
Group, LLP as special counsel.
CHART INDUSTRIES: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on March 11, 2025, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Chart Industries, Inc. EJR also withdrew its rating
on commercial paper issued by the Company.
Headquartered in Ball Ground, Georgia, Chart Industries, Inc.
operates as a global manufacturer of equipment used in the
production, storage, and end-use of hydrocarbon and industrial
gases.
CHART INDUSTRIES: Moody's Ups CFR to Ba3, Outlook Remains Positive
------------------------------------------------------------------
Moody's Ratings upgraded the ratings of Chart Industries, Inc.
("Chart") including its corporate family rating to Ba3 from B1, its
probability of default rating to Ba3-PD from B1-PD, its senior
secured notes and senior secured bank credit facility ratings to
Ba2 from Ba3 and its senior unsecured notes rating to B2 from B3.
At the same time, the company's speculative grade liquidity rating
(SGL) was upgraded to SGL-1 from SGL-2. The outlook remains
positive.
The upgrade reflects Moody's views that Chart's strong backlog and
order growth will provide a base for revenue growth of about 9% in
2025 and 5% in 2026, with its EBITA margin expanding to about 22%.
Charts margins will continue to benefit from its high level of
aftermarket revenue – the company's repair, service & leasing
segment generated about a third of its 2024 revenue. Earnings
improvement, coupled with debt repayment, has helped Chart's
debt/EBITDA (including Moody's standard adjustments) decline to
3.9x at the end of 2024, which Moody's project will approximate
3.0x at the end of 2025. The company has a stated net debt/EBITDA
target of 2.0x to 2.5x which equates to Moody's-calculated
debt/EBITDA of about 3.0x to 3.5x.
The positive outlook reflects the company's very good liquidity and
Moody's projections that Chart will generate about $1 billion of
cumulative free cash flow over the next two years, enabling it to
fund shareholder returns and modest acquisitions while maintaining
debt/EBITDA around 3x.
RATINGS RATIONALE
Chart's ratings are supported by its record backlog, high level of
repair, service and leasing revenue and its strong geographic
diversification. Earnings growth will come from tailwinds
associated with demand for clean energy solutions, expansion in
high growth markets such as hydrogen, liquefied natural gas (LNG)
and carbon capture, as well as cost control efforts. Chart faces
risks related to weakness in the macroeconomic environment
including pressure from tariffs, political tension with other
countries and geopolitical risk. Continued strength in LNG demand
is also important to maintaining earnings growth.
Chart's liquidity is very good, reflecting cash of just over $300
million at December 31, 2024 and about $1 billion of availability
under its $1.25 billion committed revolver that expires in 2029.
Moody's forecasts that the company will generate free cash flow of
between $450 million and $500 million in 2025. There are no near
term maturities, the company's nearest maturity, besides the
revolver, is 2030. The company is subject to leverage and coverage
financial maintenance covenants, and Moody's expects the company
will maintain ample cushion for each over the next 12 to 18 months.
Alternate forms of liquidity are considered modest as the company's
assets are mostly encumbered.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if Chart continues to grow its revenue
base while maintaining its strong profitability. Ratings could also
be upgraded if debt/EBITDA is sustained below 3.5x with
EBITA/interest expense sustained around 3.5x. Ratings could be
downgraded if there is deterioration in the company's liquidity.
Downward rating pressure could also come if debt/EBITDA is
sustained above 4.0x or is EBITA/interest expense approaches 2.5x.
Based in Ball Ground, Georgia, Chart Industries, Inc. designs,
engineers and manufactures process technologies and equipment for
gas and liquid molecule handling for the Nexus of Clean™ –
clean power, clean water, clean food, and clean industrials,
regardless of molecule. The company's product portfolio – across
both stationary and rotating equipment – is used in every phase
of the liquid gas supply chain, including upfront engineering,
service and repair. In the clean energy transition, Chart is a
leading provider of technology, equipment and services related to
liquefied natural gas, hydrogen, biogas, CO2 Capture and water
treatment, among other applications. The company has over 60 global
manufacturing locations and over 50 service centers from the United
States to Asia, India and Europe. Chart generated reported revenue
of almost $4.2 billion in 2024.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
CHUNGA-JINGA LLC: Seeks Chapter 11 Bankruptcy in New York
---------------------------------------------------------
On March 26, 2025, Chunga-Jinga LLC filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Eastern District of New York
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About Chunga-Jinga LLC
Chunga-Jinga LLC is a real estate management company based in
Brooklyn, New York, primarily focused on owning and managing
residential properties.
Chunga-Jinga LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-41417) on March 26,
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 Nancy Hershey Lord handles the case.
The Debtor is represented by Robert J. Spence, Esq. at SPENCE LAW
OFFICE, P.C.
CIBUS INC: Files Registration Statement for 4MM Shares
------------------------------------------------------
Cibus, Inc., filed a Form S-8 with the U.S. Securities and Exchange
Commission for the purpose of registering an additional 4,000,000
shares of Class A common stock, par value $0.0001 per share, of the
Company authorized for issuance pursuant to the Cibus, Inc. 2017
Omnibus Incentive Plan, as amended, which is the same class as the
securities previously registered for issuance thereunder on
effective Registration Statements on Form S-8 filed with the
Securities and Exchange Commission on July 20, 2017, May 9, 2019,
July 16, 2021, March 2, 2023, May 24, 2023, and June 30, 2023.
The Company is represented by:
Peter E. Devlin, Esq.
Erik B. Lundgren, Esq.
Jones Day
250 Vesey Street
New York, NY 10281
Tel: (212) 326-3939
A full-text copy of the Form S-8 is available at
https://tinyurl.com/bdzc4hku
About Cibus Inc.
Headquartered in San Diego, CA, Cibus, Inc. is an agricultural
biotechnology company that uses proprietary gene editing
technologies to develop plant traits (or specific genetic
characteristics) in seeds. Its primary business is the
development
of plant traits that help address specific productivity or yield
challenges in farming such as traits for weed management and
disease resistance. These traits are referred to as productivity
traits because they can improve farming productivity,
profitability
and sustainability. Certain productivity traits lead to the
reduction in the use of chemicals like fungicides, insecticides,
or
the reduction of fertilizer use, while others make crops more
adaptable to their environment or to climate change. The ability
to develop productivity traits in seeds that can increase farming
productivity and reduce the use of chemicals in farming is the
promise of gene editing technologies.
San Diego, California-based BDO USA, P.C., the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 21, 2024. The report highlights that the Company has
incurred recurring losses from operations and negative cash flows
from operations.
The Company has incurred losses since its inception. The
Company's
net loss was $337.6 million, and cash used for operating
activities
was $46.2 million for the year ended Dec. 31, 2023. The Company's
primary source of liquidity is its cash and cash equivalents, with
additional capital resources accessible (subject to market
conditions and other factors) from the capital markets, including
through offerings of common stock or other securities.
The Company anticipates that it will continue to generate losses
for the next several years.
CIMG INC: Zhongyan Signs Deal to Acquire 51% of Shanghai Huomao
---------------------------------------------------------------
CIMG Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that Zhongyan Shangyue
Technology Co., Ltd., the Company's wholly-owned subsidiary,
entered into a Business Cooperation Intent Agreement with Shanghai
Huomao Cultural Development Co., Ltd.
Pursuant to the Agreement, the three shareholders of Huomao intend
to transfer an aggregate of 51% of their equity interest in Huomao
to Zhongyan in exchange for 200,000 shares of CIMG's common stock,
par value $0.00001 per share, to be issued to the designated
parties. The Common Stock shall be subject to a six-month lock-up
period. The parties to the Agreement plan to consummate the
Transfer within 15 calendar days from the date of the Agreement.
Upon completion of the Transfer, Huomao's employees shall be
integrated into the Company's corporate group, and both parties
agree that Mr. Xiaocheng Hao shall be appointed as Chief Executive
Officer of Huomao, continuing to oversee Huomao's daily operations.
Additionally, the parties agree to establish a decision-making
committee, which shall unanimously approve any Huomao's transaction
exceeding RMB 200,000. The committee shall comprise three members:
Ms. Yanli Hou nominated by Zhongyan, Mr. Xiaocheng Hao, and Ms.
Hongfang Xie nominated by Huomao.
Furthermore, the parties propose that CIMG grant incentive shares
to Huomao's employees based on Huomao's sales performance following
the completion of the Transfer, with the specific performance
criteria and the terms of such incentive share grants to be
determined through future agreements.
About CIMG Inc.
Headquartered in Vista, California, CIMG Inc. (formerly Nuzee,
Inc.) is a digital marketing, sales and distribution company for
various consumer products with focuses on food and beverages.
Dedicated to reshaping the digital marketing and distribution with
technological applications, the Company endeavors to create greater
commercial value for its business partners and therefore enhance
its own enterprise value and shareholders' value of their stake in
the Company. The Company has a professional brand and marketing
management system, which can quickly help partnering enterprises
achieve the connection, management, and operation of marketing
channels domestically and globally.
The Company has had limited revenues, recurring losses and an
accumulated deficit. These items raise substantial doubt as to the
Company's ability to continue as a going concern, according to the
Company's Quarterly Report for the period ended June 30, 2024.
The Company has not yet filed its Form 10-K for the fiscal year
ended September 30, 2024.
CINEMA MANAGEMENT: Trustee Taps Matthew Borror as ERISA Counsel
---------------------------------------------------------------
John Pringle, the trustee appointed in the Chapter 11 case of
Cinema Management Group, LLC, seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Matthew Borror, Esq., an attorney practicing in Campbell,
California, as special Employee Retirement Income Security Act
(ERISA) counsel.
The attorney will render these services:
(a) advise the trustee on matters relating to administration
of the Plan;
(b) assist the trustee with the termination of the Plan;
(c) prepare the Plan's annual information returns for filing;
(d) make required disclosures to Plan's participants; and
(e) perform any other services which may be appropriate to
advise and assist the trustee with respect to the Plan.
Mr. Borror will be billed at his hourly rate of $550 plus
reimbursement of expenses incurred.
Mr. Borror disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The attorney can be reached at:
Matthew J. Borror, Esq.
1205 McBain Avenue
Campbell, CA 95008
Telephone: (408) 206-8873
Email: mborror@mattborror.com
About Cinema Management Group
Cinema Management Group, LLC is an international sales company that
was launched in 2003 and was previously headed by veteran sales and
distribution executive, Edward Noeltner. Since 2003, the company
has added over 80 feature film titles to its line-up. It currently
holds distribution rights related to 82 feature films.
Cinema Management Group filed Chapter 7 voluntary petition (Bankr.
C.D. Cal. Case No. 24-20369) on December 20, 2024. The case was
converted to one under Chapter 11 on February 6, 2025, and John
Pringle was appointed as Chapter 11 trustee on February 10, 2025.
Judge Neil W. Bason oversees the case.
The Chapter 11 trustee is represented by Levene, Neale, Bender, Yoo
& Golubchik L.L.P.
CIVITAS RESOURCES: Moody's Alters Outlook on 'Ba3' CFR to Stable
----------------------------------------------------------------
Moody's Ratings has affirmed Civitas Resources, Inc.'s (Civitas)
Corporate Family Rating at Ba3, Probability of Default Rating at
Ba3-PD, and senior unsecured notes ratings at B1. The Speculative
Grade Liquidity (SGL) rating remains unchanged at SGL-2. The
outlook has been revised to stable from positive.
"The change in Civitas' outlook to stable reflects the weaker
commodity price environment, lack of debt reduction to date, and
the potentially extended time required to reduce leverage," said
Jonathan Teitel, Moody's Vice President - Senior Analyst. "The
stable outlook benefits from the successful integration of Permian
acquisitions in 2023-2024 and is supported by recently amended
financial policies prioritizing debt reduction."
RATINGS RATIONALE
Civitas' Ba3 CFR reflects its large scale, basin diversification,
and supportive financial policies. In 2025, Civitas adopted a new
capital allocation strategy prioritizing debt reduction over
shareholder returns. The company plans to use the majority of its
free cash flow for debt reduction in 2025, targeting net debt of
$4.5 billion by year-end. Previously, formulaic shareholder returns
limited its financial flexibility. Civitas has a long-term net
leverage target of 0.75x. The $475 million deferred payment in
January 2025 for the Vencer acquisition likely increased revolver
borrowings. The bolt-on acquisition in the first quarter of 2025
likely increased debt and under Moody's commodity price
assumptions, free cash flow is largely offset, which would keep
debt at the end of 2025 roughly flat before planned asset sales.
Acquisitions of assets from Hibernia Energy and Tap Rock Resources
in 2023, and Vencer Energy in 2024, significantly increased
production and drilling inventory while diversifying production
into the economically favorable Permian Basin. This diversification
also reduced concentrated exposure to regulatory risks for oil and
gas producers in Colorado. In early 2025, Civitas acquired
additional Permian assets for $300 million and plans to offset this
by selling $300 million in assets, likely in the DJ Basin. In 2024,
Civitas sold $215 million in non-core DJ Basin assets.
Civitas' SGL-2 rating reflects expectations of good liquidity. As
of December 31, 2024, the company had $76 million in cash and $450
million in outstanding revolver borrowings. The revolver has $2.5
billion in elected commitments and a $3.4 billion borrowing base,
with elected commitments increased from $2.2 billion in February
2025. The facility matures in 2028 but has a springing maturity 180
days before any earlier debt maturities. Moody's expects Civitas to
proactively address its $400 million in senior notes due October
2026 and avoid triggering the springing maturity. The revolver
includes covenants for a maximum net leverage ratio and a minimum
current ratio, with expectations for continued compliance.
Civitas' senior unsecured notes are rated B1, one notch below the
CFR, due to their subordination to the senior secured revolver.
The stable outlook reflects Moody's expectations that Civitas will
generate free cash flow and reduce debt in accordance with its
revised financial policies to maintain supportive credit metrics.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade include consistent positive
free cash flow, debt reduction and significant progress toward its
stated long-term leverage target; organic production growth and
replacement of reserves at competitive costs; retained cash flow
(RCF) to debt above 40%; and maintenance of solid liquidity.
Factors that could lead to a downgrade include a meaningful decline
in production, RCF/debt below 25%, weakening liquidity, or
regulatory developments adverse to the company.
Civitas, headquartered in Denver, Colorado, is a publicly traded
independent exploration and production company operating in the DJ
and Permian Basins.
The principal methodology used in these ratings was Independent
Exploration and Production published in December 2022.
CIVITAS RESOURCES: S&P Affirms 'BB-' ICR, Outlook Positive
----------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issuer credit rating and
positive outlook on Denver-based oil and gas (O&G) exploration and
production (E&P) company Civitas Resources Inc. At the same time,
S&P affirmed its 'BB-' issue-level rating on the company's
unsecured notes and revised its recovery rating to '4' from '3',
primarily to reflect its reduced enterprise value in a hypothetical
default scenario. The '4' recovery rating indicates S&P's
expectation for average (30%-50%; rounded estimate: 35%) recovery
in the event of a default.
Civitas Resources recently completed its $300 million debt-funded
acquisition of assets in the Permian basin and adjusted its capital
allocation policy to prioritize debt reduction over shareholder
returns.
S&P said, "The positive outlook reflects our expectation that
Civitas will use approximately $700 million of discretionary cash
flow (DCF; after fixed dividends) to reduce its debt in line with
its publicly announced net debt target of $4.5 billion by year-end
2025. We expect the company will improve its funds from operations
(FFO) to debt to about 65% in 2026 from 57% in 2025.
"We continue to forecast Civitas will improve its credit measures,
though we now anticipate a slower pace of improvement given lower
energy prices and the effects of its recent leveraging transaction.
During the first quarter of 2025, we lowered our oil price deck
forecast to $65 per barrel (/bbl) through 2028 from $70/bbl over
the same period. We also expect the company's oil volumes will
decline by about 4% in 2025 (we estimate an average of 153 thousand
barrels of oil equivalent per day [mboed]), while its recent $300
million debt-funded, bolt-on acquisition of Midland assets
incrementally increases debt.
"Nonetheless, we believe Civitas will improve its credit metrics
over the next year. We expect the company will be able to achieve
its announced $4.5 billion net debt target over our forecast period
using approximately $700 million of DCF (defined as free operating
cash flow [FOCF] after fixed dividends) to repay debt, which we
expect will be weighted toward the back-half of the year due to its
higher capital spending in the first quarter to offset the expected
production declines. Civitas has hedged about 28% of its 2025 oil
production at about $70/bbl, which we anticipate will support its
price realization. Therefore, although we expect the company's FFO
to debt will fall to 57% as of the end 2025, which is below our 60%
upgrade trigger, we expect it will improve this ratio to about 65%
in 2026, supported by an improvement in its DCF to debt to about
20% from about 15%. We will also evaluate management's progress and
use of proceeds for the announced $300 million of divestments,
which we do not incorporate in our base-case forecast. Current
leverage remains well above managements 0.75x debt to EBITDAX
long-term target."
The company's financial policy pivot partially mitigates increased
debt. After balancing shareholder returns with debt reduction in
2024, Civitas again revised its capital allocation framework to
prioritize debt reduction for the remainder of 2025. The company
also announced a year-end net debt target of $4.5 billion, which it
intends to achieve essentially by paying off its
acquisition-related debt using 100% of its FOCF after the fixed
dividend for debt reduction (up from 50% previously) and not
engaging in material share repurchases or variable dividends. S&P
said, "We estimate the company currently has about $5.3 billion of
reported net debt, which includes $475 million of debt to finance a
deferred compensation obligation related to Vencer and the $300
million consideration for its Midland basin acquisition. Civitas
funded both of these obligations in the first quarter of 2025 using
borrowings from its reserve-based lending (RBL) facility, which it
recently upsized by $300 million to $2.5 billion. We estimate the
facility has a pro-forma balance of $1.1 billion (44% drawn)."
The company continues to shift its focus away from the DJ basin and
has enhanced its inventory through its bolt-on Midland acquisition.
Civitas' total production averaged 345 mboed in 2024 (46% oil),
with the Permian basin accounting for about 51% of its production
and 55% of its capital spending. In 2025, our base case assumes a
4% decline in the company's production, mainly due to reduced
activity in the DJ Basin as its spending remains tilted toward the
Permian (about 55% of capital expenditure [capex] in 2025). S&P
said, "We also anticipate that the company will target its assets
in the DJ basin to achieve its $300 million divestment target.
Despite Civitas' historically steady production volumes, we
anticipate its oil volumes will decline about 10% from the high
point it achieved in the fourth quarter of 2024 due to
underinvestment. However, we expect the company will largely offset
this decline with capital spending of about $1.9 billion this year
funding a two-rig/two-frac crew program in the DJ and a
five-rig/two-frac crew program in the Permian (Midland focused)."
Civitas' has proved reserves of 798 million barrels of oil
equivalent (mmboe; 83% proved developed) as of year-end 2024, and
we estimate a proved developed reserve life of about 4.2 years
based on its current production levels. Finally, the company has
existing acreage near its recently completed bolt-on transaction
and is familiar with the assets, which will likely support its
integration. The transaction will contribute little initial
production but will provide Civitas with about 130 locations for
future development.
S&P said, "Our rating continues to capture the risk that DJ Basin
permitting requirements could negatively impact the company's
production levels. Civitas received approval for its Lowry
Comprehensive Area Plan (CAP) in 2024 but has not progressed toward
securing approval for the Arapa CAP for its next large batch of
approvals. However, the company has a track record of receiving
approvals on an individual well or pad basis through oil and gas
development plans (OGDPs). Our base case assumes Civitas is able to
successfully navigate the permitting process.
"The positive outlook reflects our expectation that, despite its
somewhat weaker credit measures, Civitas will generate
approximately $700 million of DCF (after fixed dividends), which it
will use to reduce its debt in line with its publicly announced
$4.5 billion net debt target by year-end 2025. Additionally, we
will evaluate the company's progress on its $300 million divestment
target and its use of the related proceeds. We forecast Civitas
will improve its FFO to debt to about 65% in 2026 from about 57% in
2025."
S&P could revise its outlook on Civitas to stable over the next 12
months if it is unable to improve its credit metrics such that its
FFO to debt remains below 60% on a sustained basis. This would most
likely occur if:
-- The company fails to materially reduce its debt materially,
including achieving its net debt target of $4.5 billion by year-end
2025;
-- Commodity prices decline below S&P's assumptions; or
-- Management adopts a more-aggressive financial policy that
involves leveraging acquisitions or shareholder returns exceeding
S&P's expectations.
S&P said, "We could also revise our outlook on Civitas if it is
unable to successfully navigate the Colorado regulatory
environment, leading to a materially negative effect on its
development plans.
"We could raise our ratings on Civitas over the next 12 months if
it maintains its current scale, uses its DCF to repay debt, and
generates FFO to debt of more than 60% on a sustained basis."
CLOUTER CREEK: Seeks to Hire French Law Firm as Special Counsel
---------------------------------------------------------------
Clouter Creek Reserve LLC seeks approval from the U.S. Bankruptcy
Court for the District of South Carolina to employ The French Law
Firm, LLC, as special counsel.
The firm will represent the Debtor in managing its property located
at 100 Sands Preserve Drive, Charleston, South Carolina. The
Property is in Berkeley County on the Wando River and consists of
16.41 acres with zoning entitlement for up to 52 single family
estate lots and Army Corps approval for a 110-slip wet marina.
The firm will be paid at these rates:
Shawn M. French, Sr. $350/hr
Paralegals $115/hr
As disclosed in the court filings, The French Law Firm, LLC does
not hold or represent an interest adverse to the Debtor or the
estates of the Debtor and is a disinterested person as that term is
defined in U.S.C. Sec. 101(14).
The firm can be reached through:
Shawn M. French, Sr., Esq.
The French Law Firm, LLC
851 Hwy 378, Suite 100 1074
Lexington, SC 29072
Tel: (843) 606-6440
Email: shawn@thefrenchlawfirm.com
About Clouter Creek Reserve LLC
Clouter Creek Reserve LLC formerly known as IVO SANDS, LLC, is a
single asset real estate entity based in Charleston, South
Carolina.
Clouter Creek Reserve LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.S.C. Case No. 25-00034) on January
6, 2025. In its petition, the Debtor reports estimated assets
between $10 million and $50 million and liabilities between $1
million and $10 million.
Penn Law Firm LLC represents the Debtor as counsel.
COLIANT SOLUTIONS: Hires Rountree Leitman Klein as Counsel
----------------------------------------------------------
CoLiant Solutions Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ Rountree,
Leitman, Klein & Geer, LLC as counsel.
The firm's services include:
a. giving the Debtor legal advice with respect to its powers and
duties as Debtor-in-Possession in the management of its property;
b. preparing on behalf of the Debtor as Debtor-in-Possession
necessary schedules, applications, motions, answers, orders,
reports and other legal matters;
c. assisting in examination of the claims of creditors;
d. assisting with formulation and preparation of the disclosure
statement and plan of reorganization and with the confirmation and
consummation thereof; and
e. performing all other legal services for the Debtor as
Debtor-in-Possession that may be necessary herein.
The firm will be paid at these rates:
Attorney
William A. Rountree $595 per hour
Will B. Geer $595 per hour
Michael Bargar $535 per hour
Hal Leitman $425 per hour
William Matthews $425 per hour
David S. Klein $495 per hour
Elizabeth Childers $395 per hour
Ceci Christy $425 per hour
Caitlyn Powers $375 per hour
Shawn Eisenberg $300 per hour
Paralegals
Elizabeth Miller $290 per hour
Megan Winokur $175 per hour
Catherine Smith $150 per hour
Law Clerk $175 per hour
The firm received from the Debtor a pre-petition retainer of
$100,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
William A. Rountree, Esq., a partner at Rountree, Leitman, Klein &
Geer, 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:
William A. Rountree, Esq.
Rountree, Leitman, Klein & Geer, LLC
Century I Plaza
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Tel: (404) 584-1238
Email: wrountree@rlkglaw.com
About CoLiant Solutions Inc
CoLiant Solutions Inc. offers safety and security services to
retailers and construction sites nationwide by installing security
and fire alarm systems. Wal-Mart is the Debtor's largest client,
accounting for 50% of its business. Other customers include
construction contractors, food and beverage retailers like Duncan
Brands, and department stores like Dillard's. The Debtor has
physical office locations in Springfield, Illinois, Bentonville,
Arkansas, Modesto, California, and Buford, Georgia.
CoLiant filed Chapter 11 petition (Bankr. N.D. Ga. Case No.
25-51509) on February 12, 2025, listing between $1 million and $10
million in assets and between $10 million and $50 million in
liabilities.
The Debtor is represented by William Rountree, Esq., at Rountree
Leitman Klein & Geer, LLC.
COMTECH TELECOMMUNICATIONS: Egan-Jones Retains B- Unsec. Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on March 17, 2025, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Comtech Telecommunications Corp. EJR also withdrew
its rating on commercial paper issued by the Company.
Headquartered in Huntington, New York, Comtech Telecommunications
Corp. designs, develops, and manufactures technology electronic
products and systems.
CONN'S INC: Creditors Oppose $4MM Award to Lender
-------------------------------------------------
Emily Lever of Law360 Bankruptcy Authority reports that the
unsecured creditors' committee of bankrupt retailer Conn's Inc. has
asked a Texas bankruptcy judge to reject the company's proposal to
amend its debtor-in-possession financing to pay a lender $4 million
for purported adequate protection.
About Conn's, Inc.
Conn's, Inc., is a retailer of home goods and furniture in The
Woodlands, Texas.
Conn's and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 24-33357) on
July 23, 2024. In its petition, Conn's reported $1 billion to $10
billion in both assets and liabilities.
Judge Jeffrey P. Norman oversees the cases.
The Debtors tapped Duston K. McFaul, Esq., at Sidley Austin, LLP as
legal counsel; Houlihan Lokey, Inc. as investment banker; and BRG
Capital Advisors, LLC, as interim management services provider.
Epiq Corporate Restructuring, LLC, is the Debtors' notice and
claims agent.
CONNEXA SPORTS: Reports $156K Net Income at Jan. 2025
-----------------------------------------------------
Connexa Sports Technologies Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net income of $156,408 over net revenue of $3,272,727 for the three
months ended January 31, 2025, and a net income of $4,048,515, over
net revenue of $9,818,181 for the nine months ended January 31,
2025.
The Company also reported $30,714,408 in total assets, $4,073,761
in total liabilities, and $26,640,647 in total shareholders' equity
at January 31, 2025.
The Company finances its operations primarily through cash
generated from operations. The Company recorded net current assets
of $15.3 million as of January 31, 2025, compared to $9.0 million
as of April 30, 2024, an increase of approximately $6.3 million.
The Company's accounts receivable increased by $9.1 million as it
recognized royalty revenue over this period in accordance with its
recognition policy while the credit terms of its licensees, to
afford them time to monetize the licensed technology, gave them 90
days from the end of the financial year to pay.
A full-text copy of the Form 10-Q is available at
https://tinyurl.com/4949nt9u
About Connexa Sports
Headquartered in Windsor Mill, Maryland, Connexa Sports
Technologies Inc. -- www.connexasports.com -- is a connected
sports
company delivering products, technologies, and services across a
range of activities in sports. Connexa's mission is to reinvent
sports through technological innovation driven by an unwavering
focus on today's sports consumer.
Connexa reported $21,583,761 in total assets, $13,542,980 in total
liabilities, and $8,040,781 in total stockholders' equity as of
October 31, 2024.
Lagos, Nigeria-based Olayinka Oyebola & Co., the Company's former
auditor 2023, issued a "going concern" qualification in its report
dated July 24, 2024, citing that the Company suffered an
accumulated deficit of $(167,387,028), net loss of $(15,636,418),
and decline in net sales. These matters raise substantial doubt
about the Company's ability to continue as a going concern.
On October 30, 2024, the Board of Directors and the audit
committee
of the Company approved the engagement of Bush & Associates CPA as
the Company's independent registered public accounting firm for
the
fiscal year ended April 30, 2025, effective immediately, and
dismissed Olayinka Oyebola & Co as the Company's independent
registered public accounting firm.
The reason for the dismissal of OOC and the engagement of B&A is
that due to the charges brought by the U.S. Securities and
Exchange
Commission against OOC for allegedly aiding and abetting a
securities fraud, the risk of continuing with OOC as the Company's
auditor is no longer tolerable to the Company.
CORECIVIC INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on March 11, 2025, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by CoreCivic, Inc.
Headquartered in Nashville, Tennessee, CoreCivic, Inc. provides
detention management and correctional services to governmental
agencies.
CORSA COAL: Gets Court Okay for $23.5MM Chapter 11 Asset Sale
-------------------------------------------------------------
Rick Archer of Law360 reports that on March 27, 2025, a
Pennsylvania bankruptcy judge approved the $23.5 million sale of
bankrupt Corsa Coal Corp.'s assets, dismissing objections to the
inclusion of litigation claims and proposals to allocate proceeds
for environmental cleanup.
About Corsa Coal
Corsa Coal is a coal mining company focused on the production and
sales of metallurgical coal, an essential ingredient in the
production of steel. Its core business is producing and selling
metallurgical coal to domestic and international steel and coke
producers in the Atlantic and Pacific basin markets.
Corsa Coal sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Pa. Case No. 25-70003) on January 6, 2025. In its
petition, the Debtor reports estimated assets between $50,000 and
$100,000 and estimated liabilities between $100,000 and $500,000.
Honorable Bankruptcy Judge Jeffery A. Deller handles the case.
Michael J. Roeschenthaler of Raines Feldman Littrell LLP represents
the Debtor as counsel.
CP ATLAS: Moody's Rates New Sr. Secured First Lien Term Loan 'B2'
-----------------------------------------------------------------
Moody's Ratings assigned a B2 rating to the proposed senior secured
first lien term loan issued by CP Atlas Buyer, Inc. (doing business
as American Bath Group, LLC). American Bath's B3 corporate family
rating, B3-PD probability of default rating (PDR), B2 existing
senior secured first lien bank credit facility ratings and Caa2
senior unsecured notes rating all remain unchanged. The outlook is
stable.
$85 million of the $161 million term loan proceeds will be used to
fund an acquisition. $21 million will be used to pay fees, expenses
and OID associated with the transaction. The remaining $55 million
of term loan proceeds will be used to fully repay outstanding
amounts under the revolver.
Moody's views the acquisition as leverage neutral given the
company's already high leverage of over 8x and expected EBITDA
generation coming from the investments. Successful achievement of
synergies could result in modest deleveraging.
RATINGS RATIONALE
The B2 rating on the senior secured first lien term loans, one
notch above the company's CFR, reflects its senior position to the
company's unsecured notes.
The B3 CFR reflects the highly discretionary nature of bathware and
spa products and customer concentration with big box retailers that
exposes the company to shifts in its end-market. The company has
very high leverage (over 8x debt/EBITDA as of September 30, 2024)
attributable to an approximate 25% decline in Moody's adjusted
EBITDA from its peak in 2022. Moody's expects leverage to remain at
similar levels through 2025.
The rating is supported by American Bath's solid market position
and national footprint and broad bathware product offerings.
American Bath's liquidity is solid. The company has remained free
cash flow generative despite the earnings decline. Pro forma for
the transaction, the company had about $58 million of cash on its
balance sheet and an undrawn $5 million revolver due November 2025
and $125 million revolver due August 2027.
The stable outlook reflects Moody's expectations that the company
will continue to generate positive free cash flow and maintain good
liquidity despite a challenging market environment and high
leverage.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The rating could be upgraded if:
-- Debt/EBITDA below 5.5x
-- EBITA/interest expense consistently above 2.0x
-- Free cash flow/debt consistently above 5.0%
The rating could be downgraded if:
-- Debt/EBITDA above 6.5x
-- EBITA/interest expense below 1.0x
-- A deterioration in liquidity
American Bath Group, LLC is a major US and Canadian manufacturer
and distributor of bathware constructed from gelcoat, sheet molded
compound, porcelain on steel, acrylic and solid surface. The
company also manufactures shower doors and shower wall panels. The
company is owned by funds advised by Centerbridge Partners, L.P.
For the 12 months ended September 2024, the company generated about
$1.3 billion in revenue.
The principal methodology used in this rating was Manufacturing
published in September 2021.
CRACKED EGGERY: Unsecureds Will Get 5.7% of Claims in Plan
----------------------------------------------------------
Cracked Eggery, Inc., filed with the U.S. Bankruptcy Court for the
District of Columbia a Chapter 11 Plan of Reorganization dated
March 5, 2025.
The Debtor is a corporation organized under the laws of the
District of Columbia and has been in operation since May of 2019.
Cracked Eggery was founded by Michael Tabb ("Mike"), Andrew
Zarinsky ("AJ"), and George Brickelmair ("Ross") collectively (the
"Founders").
Prior to creating the concept of Cracked Eggery, the Founders
gained extensive experience in restaurant operations at Georgetown
Events, overseeing eleven restaurants which generated annual sales
of $25-30 million. After developing the concept, the Founders
focused on getting Cracked Eggery off the ground.
The Debtor filed this Chapter 11 bankruptcy on December 5, 2024, in
good faith after investigating all alternative solutions that would
have been in the best interest of Cracked Eggery and its creditors.
As indicated in its bankruptcy schedules, the Debtor has
approximately $1,876,645 in total debt.
The Debtor currently owns stock in the Restaurants which are its
principal assets. The Restaurants are generating sufficient income
to provide upstream payments to the Debtor. The Restaurants have
three loans that will be paid off over the next several months
which will free up additional cashflow and allow them to generate
additional income to provide upstream payments to the Debtor for
purposes of funding this Chapter 11 Plan.
The Debtor has approximately $535,545.52 in scheduled general
unsecured claims, that are not subject to priority (and an
additional $1,295,649.95 in scheduled secured claims, the secured
status of which is disputed and is the subject of litigation in
Adversary Proceeding 25-10001) not subject to cure through
assumption. Debtor reserves all rights to object to any disputed
Unsecured Claims.
Class 2 consists of all General Unsecured Claims, which includes
the Claim of the Donald H. Patterson, III Revocable Trust. Provided
that any Allowed Class 2 Claim has not been paid prior to the
Effective Date, or pursuant to a cure payment to be paid to assume
an executory contract, and except to the extent that a holder of a
Class 2 Claim agrees to a different and lesser treatment, each
holder of an Allowed Class 2 Claim shall receive from the Debtor,
in full and complete settlement, satisfaction and discharge of its
Allowed Class 2 Claim, a pro rata portion of the quarterly payments
(to the extent that Administrative Claims and Priority Tax Claims
have first been paid in full) (and each such pro rata share to be
paid after payment of the commission incurred by the Trustee, if
any).
Otherwise, General Unsecured Claims shall be paid quarterly pro
rata commencing on the Effective Date in accordance with the
Debtor's Financial Projections at Exhibit B, but after the payment
in full of Tax Priority Claims, Non-Tax Priority Claims,
Administrative Tax Claims, Administrative Expense Claims,
Professional Expense Claims and the Class 1 Claimant(s), the total
minimum amount allocated under the Plan for the payment of Allowed
General Unsecured Claims is estimated to be $104,700.00, or roughly
a 5.7% distribution on estimated Allowed General Unsecured Claims.
On a quarterly basis, the amount to be disbursed to Allowed General
Unsecured Claims on a pro rata basis is estimated to be between
$10,500.00 and $40,000.00 (this after Administrative Claims,
Priority Tax Claims and Class 1 Claims have been paid).
This estimation assumes that no Class 2 Claim will be deemed to be
a Nondischargeable Claim. In the event that any Class 2 Claim is
deemed to be a Non-Dischargeable Claim, the amount available for
distribution to Class 2 Claims on a pro rata basis will be reduced
to the extent of the amount of any such Claim deemed to be Non
Dischargeable. Class 2 is impaired under this Plan and, therefore,
Holders of Class 2 Claims are entitled to vote to accept or reject
this Plan.
Class 3 consists of the equity interests in the Debtor. The holders
of the equity interest in the Debtor, Cracked LLC (62.5% equity
interest) and the Donald H. Patterson, III Revocable Trust (37.5%
equity interest) shall retain their respective equity interest in
the Debtor. Holders of equity interests in the Debtor are
unimpaired and not entitled to vote on the Plan.
All property of the Estate shall revest in the Debtor on the
Effective Date, free and clear of all other liens, Claims,
interests and encumbrances, except for the liens specifically
preserved or created by this Plan.
A full-text copy of the Plan of Reorganization dated March 5, 2025
is available at https://urlcurt.com/u?l=sbadaR from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Kevin R. Feig, Esq.
McNamee Hosea, P.A.
6404 Ivy Lane, Suite 820
Greenbelt, MD 20770
Telephone: (301) 441-2420
Email: kfeig@mhlawyers.com
About Cracked Eggery Inc.
Cracked Eggery Inc. -- https://crackedeggery.com/-- serves
delicious and innovative egg sandwiches, bowls and tots made from
premium, local ingredients.
Cracked Eggery Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Col. Case No. 24-00416) on December 5,
2024. In the petition filed by Andrew Zarinsky, as
co-founder/director, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Elizabeth L. Gunn handles the case.
The Debtor is represented by Kevin R. Feig, Esq. at MCNAMEE HOSEA,
P.A.
CRC RESTAURANT: Amends Fundkite Secured Claim Pay
-------------------------------------------------
CRC Restaurant Group LLC submitted a Second Amended Plan of
Reorganization dated March 5, 2025.
This Plan provides for: 1 class of secured claims; 1 class of
unsecured claims; and 1 class of equity security holders.
The Debtor's projected Disposable Income over the life of the Plan
is $16,344.00.
Class 1 consists of the Secured Claim of Fundkite. This Claim is
secured by a lien on the Fundkite Collateral. The amount of the
Class 1 Secured Claim is approximately $17,200.00. To the extent
that this Claim is allowed as a secured claim, then the holder
will: (i) retain the liens securing the Claim to the extent of the
allowed amount of the secured claim; and (ii) receive on account of
such Claim deferred cash payments totaling at least the allowed
amount of the Claim, of a value, as of the Effective Date of the
claimant's interest in the estate's interest in the property
securing the claim.
Accordingly, the Reorganized Debtor shall make thirty-six equal
monthly payments of principal and interest in the amount of
$538.99, which payment amount is calculated based upon amortizing
the amount of the Allowed Secured Claim over a three-year period
with interest at the Secured Rate. This claim shall be paid
directly by the Debtor. This Class is Impaired.
Class 2 consists of the Allowed Unsecured Claims against the
Debtor. This Class is Impaired.
* Consensual Plan Treatment: The liquidation value or amount
that unsecured creditors would receive in a hypothetical chapter 7
case is approximately $0.00. Accordingly, the Debtor proposes to
pay unsecured creditors a pro rata portion of $16,500.00. Payments
will be made in equal quarterly payments of $1,375.00. Payments
shall commence on the fifteenth day of the month, on the first
month that begins more than ninety days after the Effective Date
and shall continue quarterly for eleven additional quarters.
Pursuant to Section 1191 of the Bankruptcy Code, the value to be
distributed to unsecured creditors is greater than the Debtor's
projected disposable income to be received in the 3-year period
beginning on the date that the first payment is due under the plan.
Holders of Class 2 claims shall be paid directly by the Debtor.
* Nonconsensual Plan Treatment: The liquidation value or
amount that unsecured creditors would receive in a hypothetical
chapter 7 case is approximately $0.00. Accordingly, the Debtor
proposes to pay unsecured creditors a pro rata portion of its
projected Disposable Income, $4,955.00. If the Debtor remains in
possession, plan payments shall include the Subchapter V Trustee's
administrative fee which will be billed hourly at the Subchapter V
Trustee's then current allowable blended rate. Plan Payments shall
commence on the fifteenth day of the month, on the first month that
is one year after the Effective Date and shall continue annually
for two additional years. The initial estimated annual payment
shall be $10,554.00. Holders of Class 2 claims shall be paid
directly by the Debtor.
The Plan contemplates that the Reorganized Debtor will continue to
operate the Debtor's business.
Except as explicitly set forth in this Plan, all cash in excess of
operating expenses generated from operation until the Effective
Date will be used for Plan Payments or Plan implementation, cash on
hand as of Confirmation shall be available for Administrative
Expenses.
A full-text copy of the Second Amended Plan dated March 5, 2025 is
available at https://urlcurt.com/u?l=yf6BiX from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Jeffrey S. Ainsworth, Esq.
Cole B. Branson, Esq.
BransonLaw, PLLC
1501 E. Concord St.
Orlando, FL 32803
Telephone: (407) 894-6834
Facsimile: (407) 894-8559
Email: jeff@bransonlaw.com
E-mail: cole@bransonlaw.com
About CRC Restaurant Group
CRC Restaurant Group, LLC, a company in Cocoa Beach, Fla., filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. M.D. Fla. Case No. 24-04571) on August 28, 2024, with up to
$50,000 in assets and up to $10 million in liabilities. Danny
Chopra, manager, signed the petition.
Judge Tiffany P. Geyer presides over the case.
Jeffrey S. Ainsworth, Esq., at Bransonlaw, PLLC, is the Debtor's
bankruptcy counsel.
CRYPTO COMPANY: Adds David Natan, Lene Martin to Leadership Team
----------------------------------------------------------------
The Crypto Company announced the addition of David Natan as
Consulting Chief Financial Officer and Dr. Lene Martin as an
Advisor of the Company. These appointments aim to foster TCC's
focus on financial oversight, governance, and blockchain innovation
as the Company continues to expand in the digital asset space.
David Natan – Consulting CFO
Mr. Natan brings decades of experience in financial management,
public company operations, and corporate governance. As President
and CEO of Natan & Associates, LLC, he has provided CFO consulting
services since 2007. He previously served as CFO of PharmaNet
Development Group as well as CFO of Global Technovations. In
addition, he has held roles at Deloitte & Touche LLP and currently
serves as Board Member and Audit Committee Chair for Sunshine
Biopharma.
In connection with his appointment, Mr. Natan and the Company
entered into a Consulting Agreement. The Consulting Agreement
provides for a rate of $225 per hour for Mr. Natan's services. In
addition, Mr. Natan received an award of 15,000,000 restricted
shares of the Company's Common Stock, which are fully vested. The
Consulting Agreement requires that the Company indemnify Mr. Natan
in connection with Mr. Natan's performance of services. The
Consulting Agreement has an indefinite term, however it is subject
to termination by either party without notice.
Dr. Lene Martin – Advisor
Dr. Martin is a leader in blockchain education and policy
development. She served as Senior Manager of Crypto University for
Coinbase and is both the Founder and Director of Blockchain at
Pepperdine University, where she is an adjunct professor and leads
blockchain research, strategy, and regulatory initiatives. Dr.
Martin also serves on several boards, advising on blockchain
adoption and governance.
Strategic Growth & Industry Leadership
"David and Lene bring invaluable experience in finance and
blockchain strategy," said Ron Levy, CEO of The Crypto Company.
"Their insights will help TCC strengthen its financial governance
and expand in the digital asset space."
"I look forward to supporting TCC's financial strategy and
governance initiatives," said David Natan.
"Blockchain and crypto adoption relies on education, strategy, and
responsible implementation. I'm excited to contribute to TCC's role
in advancing the crypto and blockchain industry," said Dr. Lene
Martin.
These appointments reflect TCC's commitment to strengthening its
leadership team with experienced professionals in finance and
blockchain innovation.
About Crypto Company
Malibu, Calif.-based The Crypto Company —
https://www.thecryptocompany.com — is engaged in the business of
providing consulting services and education for blockchain
technology and for the building of technological infrastructure and
enterprise blockchain technology solutions. During 2023, the
Company generated revenues and incurred expenses solely through
these consulting operations. In February 2022, the Company acquired
bitcoin mining equipment and entered into an arrangement with a
third party to host and operate the equipment. However, by the end
of 2022, the Company had exited that Bitcoin mining business.
Crypto Company reported a net loss of $4.92 million for the year
ended December 31, 2023, compared to a net loss of $5.66 million
for the year ended December 31, 2022. As of June 30, 2024, Crypto
Company had $1,293,153 in total assets, $5,939,990 in total
liabilities, and $4,646,837 in total stockholders' deficit.
Lakewood, Colorado-based BF Borgers CPA PC, the Company's former
auditor, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
On May 8, 2024, the Audit Committee of the Board of Directors of
the Company approved the dismissal of BF Borgers CPA PC as the
Company's independent registered public accounting firm after the
firm and its owner, Benjamin F. Borgers, were charged by the
Securities and Exchange Commission with deliberate and systemic
failures to comply with Public Company Accounting Oversight Board
(PCAOB) standards in its audits and reviews incorporated in more
than 1,500 SEC filings from January 2021 through June 2023; falsely
representing to their clients that the firm's work would comply
with PCAOB standards; fabricating audit documentation to make it
appear that the firm's work did comply with PCAOB standards; and
falsely stating in audit reports included in more than 500 public
company SEC filings that the firm's audits complied with PCAOB
standards. Borgers agreed to pay a $14 million civil penalty and
agreed to permanent suspensions from appearing and practicing
before the Commission as accountants, effective immediately.
On May 8, 2024, the Company engaged Bush & Associates CPA LLC as BF
Borgers' replacement. The decision to change independent registered
public accounting firms was made with the recommendation and
approval of the Audit Committee of the Company.
CRYPTO COMPANY: Raises Promissory Note to $252.9K in 4th Amendment
------------------------------------------------------------------
The Crypto Company disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company and AJB
Capital Investments LLC entered into a Fourth Amendment dated as of
March 10, 2025 to that certain Promissory Note dated as of August
28, 2024.
The First Amendment to the Promissory Note dated as of October 1,
2024, amends the Promissory Note, to increase the principal amount
of the Promissory Note from $120,000 to $142,000.
The Second Amendment to the Promissory Note amends the Promissory
Note, as amended by the First Amendment, to increase the principal
amount of the Promissory Note from $142,000 to $157,556.
The Third Amendment to the Promissory Note amends the Promissory
Note, as amended by the First and Second Amendments, to increase
the principal amount of the Promissory Note from $157,556 to
$222,890.
The Fourth Amendment to the Promissory Note amends the Promissory
Note, as amended by the First, Second, and Third Amendments, to
increase the principal amount of the Promissory Note from $22,890
to $252,890, provided, however, that the $30,000 of additional
principal carries an original issue discount of $3,000 withheld
from the Company to cover monitoring costs associated with the
Promissory Note and $2,000 withheld from the Company to cover due
diligence and legal costs in connection with the Fourth Amendment.
About Crypto Company
Malibu, Calif.-based The Crypto Company —
https://www.thecryptocompany.com — is engaged in the business of
providing consulting services and education for blockchain
technology and for the building of technological infrastructure and
enterprise blockchain technology solutions. During 2023, the
Company generated revenues and incurred expenses solely through
these consulting operations. In February 2022, the Company acquired
bitcoin mining equipment and entered into an arrangement with a
third party to host and operate the equipment. However, by the end
of 2022, the Company had exited that Bitcoin mining business.
Crypto Company reported a net loss of $4.92 million for the year
ended December 31, 2023, compared to a net loss of $5.66 million
for the year ended December 31, 2022. As of June 30, 2024, Crypto
Company had $1,293,153 in total assets, $5,939,990 in total
liabilities, and $4,646,837 in total stockholders' deficit.
Lakewood, Colorado-based BF Borgers CPA PC, the Company's former
auditor, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
On May 8, 2024, the Audit Committee of the Board of Directors of
the Company approved the dismissal of BF Borgers CPA PC as the
Company's independent registered public accounting firm after the
firm and its owner, Benjamin F. Borgers, were charged by the
Securities and Exchange Commission with deliberate and systemic
failures to comply with Public Company Accounting Oversight Board
(PCAOB) standards in its audits and reviews incorporated in more
than 1,500 SEC filings from January 2021 through June 2023; falsely
representing to their clients that the firm's work would comply
with PCAOB standards; fabricating audit documentation to make it
appear that the firm's work did comply with PCAOB standards; and
falsely stating in audit reports included in more than 500 public
company SEC filings that the firm's audits complied with PCAOB
standards. Borgers agreed to pay a $14 million civil penalty and
agreed to permanent suspensions from appearing and practicing
before the Commission as accountants, effective immediately.
On May 8, 2024, the Company engaged Bush & Associates CPA LLC as BF
Borgers' replacement. The decision to change independent registered
public accounting firms was made with the recommendation and
approval of the Audit Committee of the Company.
CRYPTO MARKET: Seeks Chapter 11 Bankruptcy in Florida
-----------------------------------------------------
On March 25, 2025, Crypto Market Real Investment Group Inc. filed
Chapter 11 protection in the U.S. Bankruptcy Court for
the Northern District of Florida. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
About Crypto Market Real Investment Group Inc.
Crypto Market Real Investment Group Inc. is a company likely
involved in cryptocurrency investments based in Navarre, Florida.
Crypto Market Real Investment Group Inc. sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No.
25-30252) on March 25, 2025. In its petition, the Debtor reports
estimated assets and liabilities between $1 million and $10 million
each.
Honorable Bankruptcy Judge Jerry C. Oldshue Jr. handles the
case.
The Debtor is represented by Byron W. Wright III, Esq. at BRUNER
WRIGHT, P.A.
CUTERA INC: Unsecureds be Paid in Full or be Reinstated in Plan
---------------------------------------------------------------
Cutera, Inc. and Crystal Sub, LLC filed with the U.S. Bankruptcy
Court for the Southern District of Texas a Disclosure Statement for
the Joint Prepackaged Plan of Reorganization dated March 5, 2025.
Cutera, Inc. (the "Company"), founded in 1998, is a global leader
of dermatology and aesthetics devices that appeal to
forward-thinking clinicians who seek the next generation of
performance, safety, and efficacy.
The Company develops, manufactures, and markets energy-based
product platforms for use by medical practitioners, enabling them
to offer safe and effective treatment to their customers and
patients. As of January 2024, the Company has: 32 issued U.S.
patents, 12 pending U.S. patents, and 14 international patents.
The Plan implements a prepackaged restructuring agreed to among the
Debtors and the Debtors' major stakeholder and holders of Claims in
the only voting class: the Consenting Senior Noteholders.
Importantly, holders of approximately 74% of Senior Notes Claims
have executed the Restructuring Support Agreement and are
supportive of the Plan and the Restructuring Transactions.
The anticipated benefits of the Plan, include, without limitation,
the following:
* An Equity Rights Offering, backstopped by the Equity Rights
Offering Backstop Parties, pursuant to which the Debtors shall
raise $30 million for general corporate purposes and to make
distributions pursuant to the Plan, including the payment of
Restructuring Expenses;
* A $25 million debtor-in-possession term loan (the "DIP
Facility"), of which $15 million will be available upon entry of
the Interim DIP Order and the remainder upon entry of the Final DIP
Order;
* An exit term loan credit facility (the "Exit Facility")
consisting of (i) a dollar-for-dollar conversion of the DIP
Facility (including fees paid-in-kind on or prior to the Effective
Date, but excluding accrued interest which will be paid in cash on
the Effective Date), and (ii) a $10 million new money term loan to
be provided by the Exit Lenders on the Effective Date on the terms
and conditions set forth in the Exit Facility Documents;
* Conversion of approximately $429.13 million of Senior Notes
Claims to 100% of the Reorganized Common Equity subject to dilution
from the Equity Rights Offering, the Equity Rights Offering
Backstop Premium, the Common Equity Convenience Buyout Premium, and
the Management Incentive Plan;
* A Common Equity Convenience Buyout to provide a cash
recovery to electing Holders of Senior Notes Claims who vote in
favor of the Plan (excluding, for the avoidance of doubt, the
Equity Rights Offering Backstop Parties) in lieu of Reorganized
Common Equity, in an amount equal to the product of the Common
Equity Convenience Buyout Share Price times the number of shares of
Reorganized Common Equity such holder was entitled to receive;
provided that, if such buyout cap is exceeded, the electing Holders
may receive both cash and Reorganized Common Equity in accordance
with Section 4.14 of the Plan;
* Payment in full or Reinstatement of all General Unsecured
Claims;
* The anticipated assumption of all Unexpired Leases and
Executory Contracts, with continued performance and payment
thereunder in the ordinary course; and
* Prompt emergence from chapter 11.
The Plan provides for a comprehensive restructuring of the Debtors'
prepetition obligations, preserves the going-concern value of the
Debtors' businesses, maximizes all creditor recoveries, and
protects the jobs of the Debtors' invaluable employees, including
Management.
On the Effective Date, after giving effect to the Restructuring
Transactions contemplated by the Plan and prior to any dilution on
account of the Management Incentive Plan, (i) the shares of
Reorganized Common Equity issued and sold to the Equity Rights
Offering participants (including the Equity Rights Offering
Backstop Parties) pursuant to the Equity Rights Offering shall
equal 39.74% of the total outstanding shares of Reorganized Common
Equity and (ii) the shares of Reorganized Common Equity issued to
the Equity Rights Offering Backstop Parties on account of the Put
Option Premium shall equal 4.9% of the total outstanding shares of
Reorganized Common Equity.
The remaining 55.36% of shares of Reorganized Common Equity
outstanding on the Effective Date will be issued to (a) the Holders
of Allowed Senior Notes Claims on account of such Claims pursuant
to Section 3.3(c)(iii)(1)(A) and Section 3.3(c)(iii)(2)(B) of the
Plan and (b) the Equity Rights Offering Backstop Parties pursuant
to Section 4.14 of the Plan, in connection with the Common Equity
Convenience Buyout.
Thus, the Debtors filed these Chapter 11 Cases to implement the
terms of the prepackaged Plan and the go-forward business strategy
on which the prepackaged Plan is based. In that regard, these
Chapter 11 Cases will comprehensively restructure the Debtors'
prepetition capital structure, preserve the going-concern value of
the Debtors' businesses, maximize all creditor recoveries
(including by reinstating General Unsecured Claims in full and
assuming all Executory Contracts and Unexpired Leases), and protect
the jobs of the Company's employees.
Class 4 consists of General Unsecured Claims. In full and final
satisfaction, compromise, settlement, release, and discharge of,
and except as otherwise agreed to less favorable treatment, on the
Effective Date, each Holder of an Allowed General Unsecured Claim
shall (i) receive payment in full in Cash of the unpaid portion of
its Allowed General Unsecured Claim paid on the later of (A) the
Effective Date and (B) in the ordinary course of business, (ii)
have its Allowed General Unsecured Claim Reinstated, or (iii)
receive such other treatment in rendering its Allowed General
Unsecured Claim Unimpaired in accordance with section 1124 of the
Bankruptcy Code. This Class is unimpaired.
On the Effective Date, all Existing Common Interests shall be
cancelled, released, and extinguished, and Holders of Existing
Common Interests shall not receive or retain any property or
distributions under the Plan.
The Debtors shall fund distributions under the Plan with: (i) Cash
on hand, including Cash from operations; (ii) the proceeds of the
Exit Facility; (iii) the proceeds of the Equity Rights Offering
(including the Equity Rights Offering Backstop Commitment); and
(iv) amounts being funded by the Equity Rights Offering Backstop
Parties to fund the Senior Notes Claim Cash Amount related to the
Common Equity Convenience Buyout in an amount up to the Common
Equity Convenience Buyout Cap. Cash payments to be made pursuant to
the Plan will be made by the Debtors or the Reorganized Debtors.
A full-text copy of the Disclosure Statement dated March 5, 2025 is
available at https://urlcurt.com/u?l=1Xgmb7 from Kurtzman Carson
Consultants, LLC d/b/a Verita Global, claims agent.
Proposed Co-Counsel to the Debtors:
ROPES & GRAY LLP
Ryan Preston Dahl
Conor P. McNamara
191 North Wacker Drive, 32nd Floor
Chicago, IL 60606
Telephone: (312) 845-1200
Facsimile: (312) 845-5500
Email: ryan.dahl@ropesgray.com
conor.mcnamara@ropesgray.com
Natasha S. Hwangpo
1211 Avenue of the Americas
New York, New York 10036
Telephone: (212) 596-9000
Facsimile: (212) 596-9090
E-mail: natasha.hwangpo@ropesgray.com
Proposed Co-Counsel to the Debtors:
HUNTON ANDREWS KURTH LLP
Timothy A. (“Tad”) Davidson II, Esq.
Phillip M. Guffy, Esq.
Catherine A. Rankin, Esq.
600 Travis Street
Suite 4200
Houston, Texas 77002
Telephone: (713) 220-4200
E-mail: TadDavidson@hunton.com
PhillipGuffy@hunton.com
CatherineRankin@hunton.com
About Cutera Inc.
Cutera, Inc., offers aesthetic and dermatological solutions to
medical professionals worldwide. The Company designs, manufactures,
and sells energy-based product platforms for medical use, as well
as distributes third-party skincare products. Its portfolio
includes various system platforms such as AviClear, enlighten,
excel HR, excel V/V+, truSculpt, Secret PRO, Secret DUO, Secret RF,
xeo, and xeo+, which allow practitioners to perform a wide range of
procedures. These procedures include treatments for acne, body
contouring, skin resurfacing and rejuvenation, hair and tattoo
removal, the elimination of benign pigmented lesions, and vascular
conditions. Many of Cutera's systems feature multiple handpieces
and applications, offering customers the flexibility to upgrade
their equipment.
Cutera Inc. and Crystal Sub, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
25-90088) on March 5, 2025, with $200,881,854 in total assets and
$480,459,932 in total liabilities. Taylor Harris, chief executive
officer, signed the petition.
Judge Alfredo R. Perez presides over the case.
The Debtors tapped Hunton Andrews Kurth LLP as local bankruptcy
counsel; Ropes & Gray LLP as general bankruptcy counsel; Houlihan
Lokey Capital, Inc., as investment banker; FTI Consulting, Inc. as
financial advisor and Kurtzman Carson Consultants, LLC d/b/a
Verital Global as notice, claims, solicitation & balloting agent.
CYTOPHIL INC: Seeks Approval to Tap JDP Consulting as Accountant
----------------------------------------------------------------
Cytophil, Inc. seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Wisconsin to employ JDP Consulting, Ltd. as
its accountant.
The Debtor needs an accountant to assist in preparing its 2024 tax
return and monthly closing of its books.
The firm will charge $40 per hour for its services.
James Potter, a member at JDP Consulting, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
James Potter
JDP Consulting, Ltd.
10656 S. Howell Ave.
Oak Creek, WI 53154
Telephone: (414) 659-0108
About Cytophil Inc.
Cytophil Inc., doing business as RegenScientific, operates in the
field of manufacturing medical devices.
Cytophil sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. E.D. Wis. Case No. 25-20576) on February 4, 2025. In its
petition, the Debtor reported total assets of $1,131,109 and total
liabilities of $3,520,398 as of September 30, 2024.
Judge G. Michael Halfenger handles the case.
The Debtor tapped Evan P. Schmit, Esq., at Kerkman & Dunn as
counsel and JDP Consulting, Ltd. as accountant.
DECO GROUP: Taps Lane Law Firm PLLC as Bankruptcy Counsel
---------------------------------------------------------
Deco Group, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of Texas to hire The Lane Law Firm, PLLC as
attorneys.
The firm will render these services:
(a) assist, advise and represent the Debtor relative to the
administration of the Chapter 11 case;
(b) assist, advise and represent the Debtor in analyzing its
assets and liabilities, investigate the extent and validity of lien
and claims, and participate in and review any proposed asset sales
or dispositions;
(c) attend meetings and negotiate with the representatives of
the secured creditors;
(d) assist the Debtor in the preparation, analysis and
negotiation of any plan of reorganization and disclosure statement
accompanying any plan of reorganization;
(e) take all necessary action to protect and preserve the
interests of the Debtor;
(f) appear, as appropriate, before this court, the appellate
courts, and other courts in which matters may be heard and protect
the interests of Debtor before said courts and the United States
Trustee; and
(g) perform all other necessary legal services in this case.
The firm's counsel will be paid at these hourly rates:
Robert Lane, Partner $595
Associate Attorney $500
Paralegals $250
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received multiple payments from Debtor totaling $30,000
from Sep 25, 2024 through Nov 20, 2024. Pre-petition, the firm took
$3,082.10 in expenses and $16,428.00 in earned fees. There is
currently $10,543.90 in the firm's IOLTA account.
Mr. Lane 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 C. Lane, Esq.
The Lane Law Firm, PLLC
6200 Savoy, Suite 1150
Houston, TX 77036
Telephone: (713) 595-8200
Facsimile: (713) 595-8201
Email: notifications@lanelaw.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.
DEEP SOUTH: Gets Final OK to Use Cash Collateral
------------------------------------------------
Deep South Silk, LLC received final approval from the U.S.
Bankruptcy Court for the Southern District of Alabama to use cash
collateral until confirmation of its Chapter 11 plan.
The final order authorized the company to use cash collateral,
including cash, deposit accounts, and accounts receivable, in
accordance with the approved budget, with a 10% variance allowed.
As protection, secured lenders ODK Capital, LLC and the U.S. Small
Business Administration were granted replacement liens on
post-petition receivables to the same extent and priority as their
pre-bankruptcy liens.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/990Sd from PacerMonitor.com.
About Deep South Silk
Deep South Silk, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ala. Case No. 25-10248) on January 29,
2025, listing up to $50,000 in assets and between $500,001 and $1
million in liabilities.
Judge Henry A. Callaway presides over the case.
The Debtor is represented by:
Jason R. Watkins, Esq.
Silver Voit Garrett & Watkins
Tel: 251-338-1096
Email: jwatkins@silvervoit.com
DEREK L. MARTIN DMD: Gets Extension to Access Cash Collateral
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of California
extended Derek L. Martin, DMD, Inc.'s authority to use cash
collateral until April 17.
The court previously authorized the dental clinic to use the cash
collateral of Wells Fargo Bank, N.A. to pay its payroll and any
required payroll taxes for the period March 2 to 15.
The next hearing is scheduled for April 17.
Wells Fargo Bank has a first priority security interest in all of
the Debtor's present and future assets.
The total outstanding debt on the three secured loans from Wells
Fargo is $102,586. The dental practice also has an unsecured line
of credit with a balance of $49,367.
About Derek L. Martin, DMD Inc.
Derek L. Martin, DMD Inc. is a dental clinic providing a variety of
treatments, from standard fillings to aesthetic services such as
digitally-designed dental veneers.
Derek L. Martin, DMD Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Calif. Case No.
25-01018) on March 14, 2025. In its petition, the Debtor reported
total assets of $365,636 and total liabilities of $1,530,365.
The Debtor is represented by:
Bernard M. Hansen, Esq.
Law Offices of Bernard M. Hansen
3465 Camino del Rio, South #250
San Diego, CA 92108
Tel: 619-283-3371
Email: bernardmhansen@sbcglobal.net
DIAMOND COMIC: Alliance Wins Bid for Key Assets in Bankruptcy Sale
------------------------------------------------------------------
Alliance Entertainment Holding Corporation (Nasdaq: AENT), a global
distributor and wholesaler specializing in music, movies, video
games, electronics, arcades, and collectibles, announced on March
25, 2025, that it has been selected as the winning bidder to
acquire substantially all of the assets of Diamond Comic
Distributors, Inc., currently being sold through a court-supervised
bankruptcy process. The proposed acquisition, which is subject to
Bankruptcy Court approval, includes Diamond Comic Distributors
(U.S.), Alliance Game Distributors, Diamond Select Toys &
Collectibles, and Collectible Grading Authority, which collectively
represent a 42-year-old enterprise recognized as a
category-defining leader in comic books, tabletop games,
pop-culture merchandise, and collectible grading.
"This is a transformative opportunity to expand our leadership in
the world of gaming and physical collectibles and deepen our reach
into thriving fan-driven categories," said Jeff Walker, CEO of
Alliance Entertainment. "With their legacy of exclusive titles,
deep retail relationships, and strong presence in comics, tabletop
games, and collectible merchandise, these businesses are highly
complementary to our existing distribution and fulfillment model.
We see powerful cross-selling potential between our product lines
and customer bases, expanding the reach of our expanded product
portfolio across both mass retail and specialty channels."
"We're incredibly honored to welcome the talented teams from
Diamond Comic Distributors, Alliance Game Distributors, and
Collectible Grading Authority to the Alliance Entertainment
family," said Bruce Ogilvie, Executive Chairman of Alliance
Entertainment. "These are passionate professionals who have built
deep relationships across the fandom, hobby, and collectibles
communities. We look forward to supporting them, learning from
them, and investing in their success. To the suppliers, creators,
and publishing partners that make this ecosystem so dynamic, we're
excited to collaborate and build lasting value together. And to the
customers who rely on these brands every day, we remain committed
to delivering the excellent service and reliability you expect, and
taking it even further."
The acquired businesses bring a combination of scale, cultural
cachet, and commercial reach. Together, Diamond Comic Distributors
(U.S.), Alliance Game Distributors, and Collectible Grading
Authority support over 5,000 retail storefronts, ranging from
independent comic and game stores to specialty retailers,
mass-market chains, and leading e-commerce platforms.
Through these businesses, Alliance Entertainment will gain deeper
access to a highly engaged community of retailers and fans who form
the backbone of the $50+ billion global market for tabletop games,
collectibles, comics, and pop culture merchandise. These businesses
have long-standing relationships with many of the most iconic
brands and publishers in the fandom ecosystem, including:
-- Dungeons & Dragons, Magic: The Gathering (Wizards of the Coast /
Hasbro)
-- Pokemon Trading Card Game
-- Marvel, BOOM! Entertainment, and Dark Horse Comics
-- Dragon Ball, One Piece, Digimon (Bandai Namco)
Alliance Game Distributors is a category leader in the fast-growing
tabletop games sector, offering over 15,000 unique SKUs to 3,000+
independent hobby retailers across North America. It partners with
over 150 game publishers, delivering industry staples and breakout
hits in card games, board games, role-playing games (RPGs), and
miniatures.
Diamond Comic Distributors (U.S.) is the industry's long-standing
distribution backbone for comic books, graphic novels, action
figures, and licensed collectibles. With over 40 years of history,
it remains the go-to fulfillment engine for 2,500+ comic shops and
thousands of additional retailers through its flagship PREVIEWS(R)
catalog, which reaches 30,000+ readers each month.
Collectible Grading Authority brings a high-value service layer to
Alliance's offering, having authenticated and graded over 500,000
collectibles for dealers, collectors, and auction firms in more
than 50 countries.
These businesses will not only expand Alliance Entertainment's
product portfolio, they extend its market coverage. With
substantial account overlaps already identified, the acquisition
will enable immediate cross-selling potential: introducing
Diamond's fan-favorite intellectual property into Alliance's mass
retail and e-commerce channels, while bringing Alliance's extensive
catalog of physical media and licensed merchandise into thousands
of specialty accounts.
"This transaction will position Alliance to deliver long-term value
by bringing together some of the most iconic fan-driven brands in
the world with the industry's most efficient and scalable
distribution platform," added Walker. "It aligns directly with our
strategy to grow through high-impact, capital-light opportunities
that strengthen our market share and expand our margin potential.
By integrating these assets, we're increasing our product
exclusivity, expanding retail and e-commerce reach, and unlocking
new cross-channel synergies, all while staying disciplined in our
operational execution. This is exactly the type of opportunity that
supports our long-term goals for sustainable growth, profitability,
and shareholder value."
Alliance Entertainment intends to finance the acquisition through
an amendment to its existing $120 million Revolving Credit
Facility, which it expects to increase to $160 million. The amended
facility will be secured by a pledge of the acquired assets,
alongside the Company's existing collateral. The transaction and
credit facility amendment are expected to close in April 2025,
subject to final bankruptcy court approval and customary closing
conditions.
About Alliance Entertainment
Alliance Entertainment (NASDAQ: AENT) is a premier distributor of
music, movies, toys, collectibles, and consumer electronics. We
offer over 325,000 unique in-stock SKU's, including over 57,300
exclusive compact discs, vinyl LP records, DVDs, Blu-rays, and
video games. Complementing our vast media catalog, we also stock a
full array of related accessories, toys, and collectibles. With
more than thirty-five years of distribution experience, Alliance
Entertainment serves customers of every size, providing a robust
suite of services to resellers and retailers worldwide. Our
efficient processing and essential seller tools noticeably reduce
the costs associated with administrating multiple vendor
relationships, while helping omni-channel retailers expand their
product selection and fulfillment goals. For more information,
visit www.aent.com.
About Diamond Comic Distributors, Inc.
Founded in 1982, Diamond Comic Distributors Inc. offers a
multi-channel platform of publishing, marketing and fulfillment
services, coupled with an unparalleled global distribution network
for its retailers, publishers and vendors.
Diamond Comic Distributors and its affiliates filed Chapter 11
petitions (Bankr. D. Md. Case No. 25-10308) on January 14, 2025. At
the time of the filing, Diamond Comic Distributors reported between
$50 million and $100 million in both assets and liabilities.
Judge David E. Rice handles the case.
The Debtors tapped Saul Ewing, LLP as legal counsel; Getzler
Henrich & Associates, LLC as financial advisor; Raymond James &
Associates, Inc. as investment banker; and Stephenson Harwood, LLP
as U.K. counsel. Omni Agent Solutions is the Debtors' claims and
noticing agent and administrative agent.
DOUBLE HELIX: Hires Carmody MacDonald as Bankruptcy Counsel
-----------------------------------------------------------
Double Helix Corporation, d/b/a KDHX Community Media, seeks
approval from the U.S. Bankruptcy Court for the Eastern District of
Missouri to employ Carmody MacDonald P.C. as bankruptcy counsel.
The firm's services include:
a. advising Debtor with respect to its rights, power, and duties
in this Chapter 11 Case;
b. assisting and advising Debtor in its consultations with any
appointed committee related to the administration of this Chapter
11 Case;
c. assisting Debtor in analyzing the claims of creditors and
negotiating with such creditors;
d. assisting Debtor with investigation of the assets,
liabilities, and financial condition of Debtor and reorganizing
Debtor's business in order to maximize the value of Debtor's assets
for the benefit of all creditors;
e. advising Debtor in connection with the sale of assets or
business;
f. assisting Debtor in its analysis of and negotiation with any
appointed committee or any third-party concerning matters related
to, among other things, the terms of a plan of reorganization;
g. assisting and advising Debtor with respect to any
communications with the general creditor body regarding significant
matters in this Chapter 11 Case;
h. commencing and prosecuting necessary and appropriate actions
and proceedings on behalf of Debtor;
i. reviewing, analyzing, or preparing, on behalf of Debtor, all
necessary applications, motions, answers, orders, reports,
schedules, pleadings, and other documents;
j. representing Debtor at all hearings and other proceedings;
k. conferring with other professional advisors retained by
Debtor in providing advice to Debtor;
l. performing all other necessary legal services in this Chapter
11 Case as may be requested by Debtor; and
m. assisting and advising Debtor regarding pending arbitration
and litigation matters in which Debtor may be involved, including
continued prosecution or defense of actions and negotiations on
Debtor's behalf.
The firm will be paid at these rates:
Partners $310 to $650 per hour
Associates $280 to $355 per hour
Paralegals/Law Clerks $150 to $205 per hour
As of the Petition Date, the firm has been paid the sum of
$10,307.50.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert E. Eggmann, Esq., a partner at Carmody Macdonald P.C,
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:
Robert E. Eggmann, Esq.
Nathan R. Wallace, Esq.
Carmody Macdonald P.C.
120 S. Central Avenue, Suite 1800
St. Louis, MO 63105
Tel: (314) 854-8600
Fax: (314) 854-8660
Email: ree@carmodymacdonald.com
nrw@carmodymacdonald.com
About Double Helix Corporation
d/b/a KDHX Community Media
Double Helix Corporation, doing business as KDHX Community Media,
is a nonprofit organization based in St. Louis, Missouri, that
operates an independent, non-commercial radio station at 88.1 FM.
The station offers a wide variety of programming, including music,
as well as public affairs shows and educational content. In
addition to its radio broadcasts, KDHX engages with the local
community through events, educational programs, and support for
independent artists.
Double Helix Corporation sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Miss. Case No. 25-40745) on March 10,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Bonnie L. Clair handles the case.
The Debtor is represented by Robert Eggmann, Esq., at CARMODY
MACDONALD P.C., in Saint Louis, Missouri.
DOVGAL EXPRESS: Court Extends Cash Collateral Access to April 19
----------------------------------------------------------------
Dovgal Express, Inc. received another extension from the U.S.
Bankruptcy Court for the Northern District of Illinois to use its
lenders' cash collateral.
The second interim order signed by Judge Timothy Barnes authorized
the company to use cash collateral from March 7 to April 19 to pay
the expenses set forth in its budget.
The budget projects total expenses of $32,000 for the interim
period.
As protection for the use of their cash collateral, the lenders
were granted replacement liens on their collateral and will receive
payments in accordance with the budget.
The lenders asserting interests in the cash collateral are 777
Equipment Finance LLC, Alliance Funding Group as servicer for Amur
Equipment Finance Inc., Commercial Credit Group, Inc., Daimler
Truck Financial Services, Equify Financial, M & T Equipment
Finance
Corp., Siemens Financial Services, Inc, Stride Bank, Trans Lease
Inc, Transportation Alliance Bank, Inc., Webster Capital Finance,
and Wells Fargo Equipment Finance, Inc.
The next hearing is scheduled for April 16.
About Dovgal Express Inc.
Dovgal Express, Inc. is a transportation services provider
specializing in dry van truckload, less-than-truckload, and
refrigerated shipments.
Dovgal Express sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-18991) on Dec. 20,
2024, with $1 million to $10 million in assets and $10 million to
$50 million in liabilities. Oleksandr Dovgal, president of Dovgal
Express, signed the petition.
Judge Timothy A. Barnes handles the case.
The Debtor is represented by:
O Allan Fridman
Law Office Of O. Allan Fridman
Tel: 847-412-0788
Email: allanfridman@gmail.com
DRAKSIN PROPERTIES: To Sell New York Property to Richard Etienne
----------------------------------------------------------------
Draksin Properties, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of New York, to sell Real Property,
free and clear of all liens and encumbrances.
The Debtor is the owner of real property located at 333 Rowland
Street, Syracuse, NY 13204, City of Syracuse, New York, County of
Onondaga, State of New York.
The Debtor has had the property listed for sale with a Howard Hanna
Real Estate for 2 months and its real estate agent is Scripa Group
Commercial Real Estate Advisors, LLC.
The Debtor wishes to sell the Property to Richard Etienne for the
purchase price of $107,500.00.
The Property is encumbered by a mortgage with Generation Bank in
the amount of approximately $246,003.19.
After the following closing costs are paid the balance of proceeds
in the amount of $95,637.82 would be paid directly to Generations
Bank to be applied toward their mortgage which is this property and
two other properties owned by the Debtor. Closing costs are as
follows:
Transfer Tax
$432.00
TP- 584 Fee $5.00
Real Estate Commission- Howard Hanna
$3,225.00
Real Estate Commission- Scripa Group
$225.00
Sarofeen & Arbon, PLLC- Fees for closing
$1,500.00
2025 2nd Quarter County Taxes
$711.81
2024-25 4th Quarter City School Taxes
$1,101.65
Water Bill $9.47
Commissioner of Finance-Sidewalk Contract
$3,263.92
Release Documents
$142.00
The Debtor proposes to sell the Property free and clear of all
liens and encumbrances.
About Draksin Properties, Inc.
Draksin Properties, Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D.N.Y. Case No. 25-30159) on March 6,
2025, listing under $1 million in both assets and liabilities.
Judge Wendy A. Kinsella presides over the case.
Peter A. Orville, Esq., at Orville & McDonald Law, P.C. serves as
the Debtor's counsel.
DRIVEHUB AUTO: Court Extends Cash Collateral Access to May 13
-------------------------------------------------------------
DriveHub Auto, Inc. received third interim approval from the U.S.
Bankruptcy Court for the Middle District of Florida, Orlando
Division, to use cash collateral until May 13.
The third interim order authorized the company to use cash
collateral to pay its operating expenses per an approved budget,
with 10% variance.
XL Funding, LLC and other creditors, which assert a security
interest in the company's cash and cash equivalents, were granted a
post-petition lien on cash collateral to the same extent and with
the same validity and priority as their pre-bankruptcy liens.
DriveHub Auto has agreed to remit up to $86,532.26 to XL Funding
from future recoveries in pending adversary proceedings.
The next hearing is set for May 13.
A copy of the court's order and the budget is available at
https://shorturl.at/xNLGg from PacerMonitor.com.
About DriveHub Auto Inc.
DriveHub Auto Inc. is a used car dealership located in Orlando,
Fla., offering pre-owned vehicles to customers.
DriveHub Auto filed Chapter 11 petition (Bankr. M.D. Fla. Case No.
25-00594) on January 27, 2025, listing between $1 million and $10
million in both assets and liabilities.
Judge Grace E. Robson handles the case.
The Debtor is represented by Daniel A. Velasquez, Esq., at Latham,
Luna, Eden & Beaudine, LLP.
Secured creditor XL Funding, LLC is represented by:
Eric B. Zwiebel, Esq.
Emanuel & Zwiebel, PLLC
7900 Peters Road
Building B, Suite 100
Plantation, FL 33324
eric.zwiebel@emzwlaw.com
DT&T LOGISTICS: Court Extends Cash Collateral Access to April 25
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division extended DT&T Logistics Inc.'s authority to use
cash collateral from March 14 to April 25.
The bankruptcy court approved the use of cash collateral to pay the
company's expenses in accordance with its budget and the terms of
the court's previous order entered on Aug. 6 last year.
The budget shows total projected expenses of $416,714.42 for the
interim period.
A status hearing is set for April 23.
About DT&T Logistics
DT&T Logistics Inc. is an Arlington Heights, Illinois-based company
operating in the trucking industry.
DT&T Logistics filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-08667) on June
12, 2024, listing between $500,000 and $1 million in assets and
between $1 million and $10 million in liabilities. Robert Handler
of Commercial Recovery Associates, LLC serves as Subchapter V
trustee.
Judge Deborah L. Thorne handles the case.
The Debtor is represented by:
Saulius Modestas, Esq.
Modestas Law Offices, P.C.
Tel: 312-251-4460
Email: smodestas@modestaslaw.com
DUN & BRADSTREET: Fitch Puts 'BB-' LongTerm IDR on Watch Negative
-----------------------------------------------------------------
Fitch Ratings has placed all of Dun & Bradstreet's ratings on
Ratings Watch Negative (RWN), following the announcement that the
company has agreed to be acquired by Clearlake Capital Group. The
RWN applies to the 'BB-' Long-Term Issuer Default Rating of Dun &
Bradstreet Corporation and Dun & Bradstreet Holdings, Inc. and the
company's issue-level ratings. The Rating Watch may remain in place
longer than six months, depending on the timing of the
transaction.
The RWN is driven by Fitch's expectation that the to-be private
company will have materially higher EBITDA leverage, and this more
aggressive capital structure will be maintained relative to
previous levels. Credit positives will remain, including a strong
base of recurring revenue with high retention rates and solid
organic growth as well as a stable EBITDA margin profile.
Key Rating Drivers
Take-Private Transaction Announced: Dun & Bradstreet announced that
it has agreed to be acquired by Clearlake Capital for approximately
$7.7 billion that would take the company private. The company has
also announced bridge loan commitments of $5.75 billion. Leverage
will be materially higher if the post-transaction capital structure
includes debt of $5.75 billion or more. Fitch's expectation for
higher leverage is the primary driver for the RWN. Fitch will
maintain the RWN until the transaction closes and will resolve it
upon obtaining more information about the final capital structure
and go-forward strategy.
Higher Sustained Leverage: Fitch expects EBITDA leverage will
remain above 5.0x and perhaps as high as 6.0x for more than a year
after the LBO is completed. There is some potential for margin
expansion as a private company, but Fitch projects any expansion
will be in bps not percentages. The company already manages its
cost structure well, and Fitch does not expect a structural change
to the business. Without margin expansion or debt reduction, which
would be unusual, higher leverage will be sustained and weigh on
the rating.
Stable Margin Profile: Dun & Bradstreet reported adjusted EBITDA
margin of 38.9% in 2024 up from 38.6% in 2023. The ongoing
challenge is to bring the EBITDA profile of its international
operations (approximately 33%) closer to its North American
operations (approximately 45%). Some of this can be attributed to
scale, since its North American business is much larger. But
improving the international margin profile has been elusive, and
this raises the question of whether the company can ever return to
the 40%-plus margins that it previously achieved.
Solid Organic Growth: The company's organic growth was 3.0% in
2024, 4.3% in 2023, and 3.5% in 2022. The company continues to
expand its client base, especially in the small business segment.
Dun & Bradstreet is also maintaining its high retention rates and
using its database to create new products and services, such as
analytics and sales and marketing. The company has noted
particularly strong engagement related to e-commerce customers
accessing self-service options. Fitch forecasts this growth will
continue in 2025, and the company's emphasis on subscriptions or
multiyear contracts provides strong credit protection.
Well Positioned as a Data Provider: Dun & Bradstreet is well
positioned as a data and analytics processing company. The company
has a long history of gathering and processing data. The demand for
its products and services should continue to grow in the
foreseeable future, and the company should be able to capture some
of this growth. Most businesses recognize that their decisions
should be informed by data and the insights derived from careful
analysis of data. Dun & Bradstreet's products, proprietary data,
and pedigree make it an attractive provider for many customers.
Parent-Subsidiary Relationship: Fitch establishes a
parent-subsidiary relationship between Dun & Bradstreet as parent,
assessing it to have a weaker standalone credit profile than its
operating subsidiary and issuer of Dun & Bradstreet Corporation
debt. Fitch rates the parent and subsidiary on a consolidated
basis, using the weak parent/strong subsidiary approach and open
access and control factors, and based on the entities operating as
a single enterprise with strong legal and operational ties.
Peer Analysis
Dun & Bradstreet's business profile as a data analytics provider is
supported by its market position, holding a meaningful market share
of core commercial credit in North America, and an approximately
90% recurring revenue base with subscriptions representing more
than three-quarters of revenue, and a long-standing customer base
with high revenue retention rates. The company is broadly
diversified across sectors, although it is weighted more toward
North America. These metrics are generally comparable with Dun &
Bradstreet's data analytics peers, the majority of which are
solidly investment grade.
Dun & Bradstreet is comparable to Clarivate (BB-/Stable) in total
revenue, margin profile and business model. The company is
significantly smaller than Moody's (BBB+/Stable) in revenue and
EBITDA and has higher leverage.
Key Assumptions
- Revenue growth of 2% over the forecast period;
- EBITDA margin of 38.9% in 2024 held constant in the projections;
- Capital intensity modeled at 8% of revenue;
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Completion of the take-private transaction, which would likely
include a downgrade as a result of higher leverage;
- In the event the transaction does not close, EBITDA leverage
expected to be sustained above 5.0x, FCF margin expected to be
sustained below 4% or Fitch's expectation for flat to negative
organic constant currency growth.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade is unlikely given the RWN.
Liquidity and Debt Structure
Dun & Bradstreet's solid liquidity position as of the end of 2024
included about $206 million of cash on the balance sheet and $840
million availability on its revolving credit facility. The company
continues to generate significant FCF further bolstering
liquidity.
Debt maturities are modest until the unsecured notes and term loan
facility mature in 2029. The unsecured notes ($460 million) are
fixed rate, and the other debt is all floating. As of Dec. 31,
2024, the company had $3,080 million outstanding on the term loan
and $10 million outstanding on the revolving credit facility, both
of which are due in 2029. The term loan represents 83% of Dun &
Bradstreet's total outstanding debt. Fitch expects this debt will
be repaid in any take-private transaction.
Issuer Profile
Dun & Bradstreet is a leading data and analytics provider of
business information that informs credit and trade decisions among
firms and lenders and also supports sales & marketing efforts.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
The Dun & Bradstreet
Corporation LT IDR BB- Rating Watch On BB-
senior unsecured LT BB- Rating Watch On RR4 BB-
senior secured LT BB+ Rating Watch On RR2 BB+
Dun & Bradstreet
Holdings, Inc. LT IDR BB- Rating Watch On BB-
DUNBAR PROPERTIES: Seeks to Hire Kasen & Kasen as Legal Counsel
---------------------------------------------------------------
Dunbar Properties, LLC seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to hire Kasen & Kasen, P.C. to
handle its Chapter 11 case.
The hourly rates of the firm's attorneys are:
David A. Kasen, Esq. $600
Francine S. Kasen, Esq. $350
Jenny R. Kasen, Esq. $500
Michael J. Kasen, Esq. $500
David Kasen, Esq., an attorney at Kasen & Kasen, disclosed in a
court filing that he is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
David A. Kasen, Esq.
Kasen & Kasen, PC
Society Hill Office Park
1874 E. Marlton Pike, Suite 3
Cherry Hill, NJ 08003
Telephone (856) 424-4144
Facsimile (856) 424-7565
Email: dkasen@kasenlaw.com
About Dunbar Properties, LLC
Dunbar Properties, LLC sought protection for relief under Chapter
11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 25-11225) on
February 5, 2025, listing $500,001 to $1 million in both assets and
liabilities.
Judge Andrew B Altenburg Jr presides over the case.
David A. Kasen, Esq. at Kasen & Kasen, P.C. represents the Debtor
as counsel.
DW TRUST: Court Denies Bid to Use Cash Collateral
-------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division issued an order denying DW Trust Investments,
LLC's motion to use cash collateral as moot.
About DW Trust Investments
DW Trust Investments, LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-18452) on Oct.
16, 2024, listing between $1 million and $10 million in both assets
and liabilities. The petition was signed by Daryle J. Rutherford
as member of DW Trust.
Judge Sheri Bluebond handles the case.
The Debtor is represented by Michael Jay Berger, Esq., at the Law
Offices of Michael Jay Berger.
DYNAMIC AEROSTRUCTURES: Hires Chipman Brown Cicero as Co-Counsel
----------------------------------------------------------------
Dynamic Aerostructures, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to hire Chipman Brown Cicero &
Cole, LLP, as co-counsel.
The firm's services include:
(a) providing legal advice with respect to the Debtors' powers
and duties as debtors in possession in the continued operation of
their businesses and management of their properties;
(b) negotiating, drafting, and pursuing all documentation
necessary in these Chapter 11 Cases;
(c) preparing on behalf of the Debtors all applications,
motions, answers, orders, reports, and other legal papers necessary
to the administration of the Debtors' estates;
(d) appearing in Court and protecting the interests of the
Debtors before the Court;
(e) assisting with any disposition of the Debtors' assets, by
sale or otherwise;
(f) negotiating and taking all necessary or appropriate
actions in connection with a plan or plans of reorganization and
all related documents thereunder and transactions contemplated
therein;
(g) attending all meetings and negotiating with
representatives of creditors, the United States Trustee, and other
parties in interest;
(h) providing legal advice regarding bankruptcy law, corporate
law, corporate governance, transactional, litigation, and other
issues to the Debtors in connection with the Debtors' ongoing
business operations; and
(i) performing all other legal services for, and providing all
other necessary legal advice to, the Debtors that may be necessary
and proper in these Chapter 11 Cases.
The firm will be paid at these rates:
Robert A. Weber $875 per hour
Mark Desgrosseilliers $850 per hour
Daniel G. Egan $750 per hour
Renae M. Fusco $350 per hour
Partners $545 to $950 per hour
Associates / Counsel $395 to $595 per hour
Paralegals $300 to $350 per hour
On Dec. 4, 2024, Chipman Brown Cicero received a retainer payment
from the Debtors totaling $150,000.
The following paragraph is provided in response to Paragraph D.1 of
the UST Guidelines:
(a) Chipman Brown did not agree to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement;
(b) None of Chipman Brown's professionals included in this
engagement have varied their rate based on the geographic location
for these Chapter 11 Cases;
(c) Chipman Brown did not represent the Debtors prior to the
Petition Date other than in connection with preparing the Chapter
11 Cases; and
(d) Chipman Brown, in conjunction with the Debtors' advisors, is
working with our client on developing an estimated budget and
staffing plan for approximately the first eight weeks of these
proceedings.
Mark Desgrosseilliers, Esq., a partner at Chipman Brown Cicero &
Cole, LLP, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Mark L. Desgrosseilliers, Esq.
William E. Chipman, Jr., Esq.
CHIPMAN BROWN CICERO & COLE, LLP
Hercules Plaza
1313 North Market Street, Suite 5400
Wilmington, DE 19801
Tel: (302) 295-0192
Email: desgross@chipmanbrown.com
About Dynamic Aerostructures
Dynamic Aerostructures, LLC are a manufacturer and supplier of
critical structural components and assemblies for the aerospace and
defense industry. They specialize in complex, large-format
structural airframe and wing components, large aluminum structures,
and complex assemblies for key aerospace and defense customers such
as Lockheed Martin, Northrop Grumman, and Boeing, among others.
They have one of the largest independent aerospace and defense
manufacturing sites in North America, operating out of 226,000
square feet across two facilities in Southern California.
Dynamic Aerostructures and its affiliates filed Chapter 11
petitions (Bankr. D. Del. Case No. 25-10292) on February 25, 2025.
At the time of the filing, listed between $10 million and $50
million in assets and between $50 million and $100 million in
liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Chipman Brown Cicero & Cole, LLP and Ropes &
Gray, LLP as bankruptcy counsels; Berkeley Research, LLC as
financial advisor; and Configure Partners, LLC as investment
banker. Kurtzman Carson Consultants, LLC is the notice, claims,
balloting and solicitation agent.
DYNAMIC AEROSTRUCTURES: Hires Configure as Investment Banker
------------------------------------------------------------
Dynamic Aerostructures, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to hire Configure Partners, LLC
and Configure Partners Securities, LLC as investment banker.
The firm will provide these services:
a. Financing Services. Configure will provide advice and
assistance to the Debtors and act as investment banker to the
Debtors in connection with any of the following transactions (each,
a "Financing"): (i) the arrangement and/or placement of any new
bank debt and/or other credit facility of the Debtors that
constitutes "debtor in possession" financing or refinances all or a
material portion of the Debtors' outstanding indebtedness; or (ii)
the issuance, sale, placement, exchange and/or contribution,
whether in one or more public or private transactions or series of
transactions, of (1) notes, bonds, debentures and/or other debt
securities of the Debtors, including, without limitation, mezzanine
and asset-backed securities and/or (2) common equity, preferred
equity, hybrid, and/or equity-linked securities of the Debtors
(regardless of when sold by the Debtors or their securityholders),
including, without limitation, convertible debt securities.
Included in the definition of Financing shall be the appraised
value of any non-cash assets or equity contributed to the Debtors
in exchange for equity, equity-linked, or debt securities,
instruments, or obligations of the Debtors. For the avoidance of
doubt, if a Financing is executed in more than one issuance,
tranche or transaction, each such issuance, tranche or transaction
shall be deemed a Financing for purposes of this Agreement.
b. Restructuring Services. Configure will provide advice and
assistance to the Debtors in connection with analyzing,
structuring, negotiating, and effecting any restructuring,
reorganization, recapitalization, repayment or modification of all
or a material portion of the Debtors' indebtedness, including,
without limitation, through any offer by the Debtors with respect
to any outstanding Debtors indebtedness, a solicitation of votes,
approvals, or consents giving effect thereto (including with
respect to a plan pursuant to chapter 11 of title 11 of the United
States Code (the "Bankruptcy Code")), the execution of any
agreement giving effect thereto, or an offer by any party to
convert, exchange, or acquire any outstanding company indebtedness
or any similar balance sheet restructuring involving the Debtors
(any such transaction described in Section 1(b) of the Engagement
Letter is hereinafter referred to as a "Restructuring"). For the
avoidance of doubt, any transaction whereby the Debtors' lender(s)
acquires the assets or securities of the Debtors or obtains direct
or indirect control of the Debtors shall not be deemed a
Restructuring.
c. M&A Services. Configure will provide advice and assistance
to the Debtors in connection with a possible sale, disposition, or
other business transaction involving all or a material portion of
the equity or assets of one or more entities comprising the
Debtors, including, without limitation, the Debtors' intellectual
property, whether directly or indirectly, and through any form of
transaction, including, without limitation, merger, reverse merger,
liquidation, stock sale, asset sale, asset swap, recapitalization,
reorganization, consolidation, amalgamation, sale under section 363
of the Bankruptcy Code (including pursuant to any "credit bid" made
under section 363(k) of the Bankruptcy Code and any chapter 11 plan
under the Bankruptcy Code), spin-off, split-off, joint venture,
strategic partnership, license, or other similar transaction (any
of the foregoing, an "M&A Transaction").
d. Financing Services. Configure will provide advice and
assistance to the Debtors and act as investment banker to the
Debtors in connection with the arrangement and/or placement of any
debtor-in-possession financing for any Debtor entity, however
achieved, and through any form of transaction (a "Financing," and
together with an M&A Transaction and a Restructuring, a
"Transaction").
The firm will receive compensation as follows:
a. Monthly Fees: The Debtors shall pay Configure a
non-refundable monthly fee (the "Monthly Fee") until the
termination of the Engagement Letter. The first Monthly Fee shall
be payable as of the date set forth in the Engagement Letter and
each subsequent Monthly Fee shall be payable in advance on each
monthly anniversary thereafter. The first full three (3) Monthly
Fees actually paid to Configure shall be credited once, without any
duplication, against any Financing Fee, Restructuring Fee or M&A
Transaction Fee subsequently payable to Configure;
b. Financing Fee: Promptly upon the consummation of a
Financing, the Debtors shall pay Configure a non-refundable cash
fee (a "Financing Fee") equal to the greater of: (i) $1.5 million
and (ii) 2.0 percent of the amount raised or committed in any
Financing; provided however, the Financing Fee payable on account
of any debtor in possession financing ("DIP Financing Fee") shall
be $250,000. Additionally, 100 percent of any DIP Financing Fee
shall be credited against any Restructuring Fee or M&A Transaction
Fee subsequently payable.
c. Restructuring Fee: Promptly upon the consummation of a
Restructuring, the Debtors shall pay Configure a non-refundable
cash fee (a "Restructuring Fee") equal to $1.5 million.
d. M&A Transaction Fee: Promptly upon the consummation of an
M&A Transaction, the Debtors shall pay Configure a non-refundable
cash fee (an "M&A Transaction Fee") equal to the greater of: (i)
$1.5 million and (ii) 2.0 percent of the total Aggregate Sales
Consideration of such M&A Transaction. Such M&A Transaction Fee
shall be payable from the proceeds of such applicable M&A
Transaction prior to any other use or distribution of such
proceeds.
e. Expense Reimbursement: In addition to any fees or other
compensation that may be paid to Configure hereunder, whether or
not any Transaction occurs, the Debtors shall reimburse Configure,
promptly upon receipt of an invoice therefor, for all (a)
reasonable and documented out-of-pocket expenses (including travel
and lodging, meals, printing, data processing and subscription
charges, telephone and facsimile charges, courier services and
other reasonable and customary out-of-pocket expenditures), and (b)
(i) the reasonable and documented out-of-pocket fees and expenses
of counsel and (ii) fees and expenses of any other consultants or
independent experts retained by Configure with the Debtors' consent
(which shall not be unreasonably withheld).
Rory Keenan, a managing director at Configure Partners and
Configure Partners Securities, disclosed in a court filing that
both firms are "disinterested" within the meaning of Section
101(14) of the Bankruptcy Code.
The firms can be reached at:
Rory Keenan
Configure Partners, LLC
Configure Partners Securities, LLC
3280 Peachtree Road NE, 7th Floor
Atlanta, GA 30305
Tel: (678) 723-4575
Email: info@configurepartners.com
About Dynamic Aerostructures
Dynamic Aerostructures, LLC are a manufacturer and supplier of
critical structural components and assemblies for the aerospace and
defense industry. They specialize in complex, large-format
structural airframe and wing components, large aluminum structures,
and complex assemblies for key aerospace and defense customers such
as Lockheed Martin, Northrop Grumman, and Boeing, among others.
They have one of the largest independent aerospace and defense
manufacturing sites in North America, operating out of 226,000
square feet across two facilities in Southern California.
Dynamic Aerostructures and its affiliates filed Chapter 11
petitions (Bankr. D. Del. Case No. 25-10292) on February 25, 2025.
At the time of the filing, listed between $10 million and $50
million in assets and between $50 million and $100 million in
liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Chipman Brown Cicero & Cole, LLP and Ropes &
Gray, LLP as bankruptcy counsels; Berkeley Research, LLC as
financial advisor; and Configure Partners, LLC as investment
banker. Kurtzman Carson Consultants, LLC is the notice, claims,
balloting and solicitation agent.
DYNAMIC AEROSTRUCTURES: Seeks to Hire Ropes & Gray LLP as Attorney
------------------------------------------------------------------
Dynamic Aerostructures, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to hire Ropes & Gray LLP as
attorneys.
The firm's services include:
a. advising the Debtors with respect to their powers and
duties as debtors in possession in the continued management and
operation of their businesses and properties;
b. advising and consulting on the conduct of these chapter 11
cases, including all of the legal and administrative requirements
of operating in chapter 11;
c. advising the Debtors regarding related tax matters;
d. taking any necessary action on behalf of the Debtors to
negotiate, draft, and obtain approval of a chapter 11 plan and all
documents related thereto;
e. representing the Debtors in connection with obtaining
authority to use cash collateral and post-petition financing;
f. representing the Debtors in connection with obtaining
authority to sell all or some of the Debtors' assets;
g. attending meetings and negotiating with representatives of
creditors and other parties in interest;
h. taking all necessary actions to protect and preserve the
Debtors' estates, including prosecuting actions on the Debtors'
behalf, defending any action commenced against the Debtors, and
representing the Debtors' interests in negotiations concerning
litigations in which the Debtors are involved, including objections
to the claims filed against the Debtors' estates;
i. preparing pleadings in connection with these chapter 11
cases, including motions, applications, answers, orders, reports,
and papers necessary or otherwise beneficial to the administration
of the Debtors' estates;
j. appearing before the Court and any appellate courts to
represent the interests of the Debtors' estates; and
k. performing all other necessary legal services for the
Debtors in connection with the prosecution of these chapter 11
cases, including: (i) analyzing the Debtors' leases and contracts
and the assumption and assignment or rejection thereof; (ii)
analyzing the validity of liens against the Debtors; and (iii)
advising the Debtors on corporate and litigation matters.
he firm will be paid at these rates:
Partners $1,800 to $2,600 per hour
Counsel $1,250 to $1,880 per hour
Associates $900 to $1,620 per hour
Paraprofessionals $355 to $755 per hour
The Debtor paid the firm an advance retainer of $50,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Gregg Galardi, a partner of the firm of Ropes & Gray LLP, disclosed
in a court filing that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Gregg M. Galardi, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, NY US 10036-8704
Tel: (212) 596-9139
Email: Gregg.Galardi@ropesgray.com
About Dynamic Aerostructures
Dynamic Aerostructures, LLC are a manufacturer and supplier of
critical structural components and assemblies for the aerospace and
defense industry. They specialize in complex, large-format
structural airframe and wing components, large aluminum structures,
and complex assemblies for key aerospace and defense customers such
as Lockheed Martin, Northrop Grumman, and Boeing, among others.
They have one of the largest independent aerospace and defense
manufacturing sites in North America, operating out of 226,000
square feet across two facilities in Southern California.
Dynamic Aerostructures and its affiliates filed Chapter 11
petitions (Bankr. D. Del. Case No. 25-10292) on February 25, 2025.
At the time of the filing, listed between $10 million and $50
million in assets and between $50 million and $100 million in
liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Chipman Brown Cicero & Cole, LLP and Ropes &
Gray, LLP as bankruptcy counsels; Berkeley Research, LLC as
financial advisor; and Configure Partners, LLC as investment
banker. Kurtzman Carson Consultants, LLC is the notice, claims,
balloting and solicitation agent.
DYNAMIC AEROSTRUCTURES: Seeks to Tap Ordinary Course Professionals
------------------------------------------------------------------
Dynamic Aerostructures, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to retain non-bankruptcy
professionals in the ordinary course of business.
The Debtors need ordinary course professionals to perform services
for matters unrelated to these Chapter 11 cases.
The Debtors seek to pay OCPs 100 percent of the fees and expenses
incurred.
The Debtors do not believe that any of the ordinary course
professionals have an interest materially adverse to them, their
estates, creditors, or other parties in interest in connection with
the matter upon which they are to be engaged.
The OCPs include:
Hackler Flynn & Associates
479 S Marengo Avenue
Pasadena, CA 91101
Attn: Nicole C. Baldwin
-- Employment law matters
Orrick, Herrington & Sutcliffe LLP
200 West 6th Street, Suite 2250
Austin, TX 78701
Attn: Zac Padgett
-- General corporate and real estate law matters
Hedman Partners LLP
27441 Tourney Road, Suite 200
Santa Clarita, CA 91355
Attn: Michael Grisanti
-- Tax and auditing advisory services
The Environmental Law Group, LLP
225 Broadway, Suite 1900,
San Diego, CA 92101
Attn: S. Wayne Rosenbaum
-- Environmental law matters
About Dynamic Aerostructures
Dynamic Aerostructures, LLC are a manufacturer and supplier of
critical structural components and assemblies for the aerospace and
defense industry. They specialize in complex, large-format
structural airframe and wing components, large aluminum structures,
and complex assemblies for key aerospace and defense customers such
as Lockheed Martin, Northrop Grumman, and Boeing, among others.
They have one of the largest independent aerospace and defense
manufacturing sites in North America, operating out of 226,000
square feet across two facilities in Southern California.
Dynamic Aerostructures and its affiliates filed Chapter 11
petitions (Bankr. D. Del. Case No. 25-10292) on February 25, 2025.
At the time of the filing, listed between $10 million and $50
million in assets and between $50 million and $100 million in
liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Chipman Brown Cicero & Cole, LLP and Ropes &
Gray, LLP as bankruptcy counsels; Berkeley Research, LLC as
financial advisor; and Configure Partners, LLC as investment
banker. Kurtzman Carson Consultants, LLC is the notice, claims,
balloting and solicitation agent.
DYNAMIC AEROSTRUCTURES: Taps Berkeley as Financial Advisor
----------------------------------------------------------
Dynamic Aerostructures, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to hire Berkeley Research Group,
LLC as financial advisor.
The firm will provide these services:
(a) in consultation with management of the Debtors, develop
and implement a chosen course of action to preserve asset value and
maximize recoveries to stakeholders;
(b) oversee the activities of the Debtors in consultation with
other advisors and the management team to effectuate the selected
course of action;
(c) assist the Debtors and their management in developing cash
flow projections and related methodologies, manage liquidity, and
assist with planning for alternatives as requested by the Debtors,
including DIP budget development and sizing;
(d) assist the Debtors in operating in a chapter 11 bankruptcy
proceeding, including negotiations with stakeholders, to preserve
and maximize value;
(e) assist the Debtors and its other professionals with
effectuating a chapter 11 section 363 sale process and related
matters;
(f) assist as requested by management in connection with the
Debtors' revision of their business plan, and such other related
forecasts as may be required by creditor constituencies in
connection with negotiations;
(g) assist with the preparation of statements of financial
affairs and schedules of assets and liabilities
(h) to the extent reasonably requested by the Debtors, offer
testimony before the Court and participate in depositions,
including by providing deposition testimony related thereto; and
(i) provide such other services.
The firm will be paid at these rates:
Managing Directors $1,140 to $1,395 per hour
Associate Directors & Directors $900 to $1,100 per hour
Professional Staff $445 to $885 per hour
Support Staff $185 to $395 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In the 90 days prior to the Petition Date, the Debtors paid BRG
$508,033.50 for professional services performed and expenses
incurred. The Debtors also paid BRG $101,000 in cash on account
which BRG holds in retainer.
Bob Butler, a partner at Berkeley Research Group, 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.
Berkeley can be reached through:
Bob Butler
Berkeley Research Group, LLC
3350 Riverwood Parkway, Suite 1900
Atlanta, GA 30339
Phone: (678) 575-4864
(678) 627-8334
Email: bbutler@thinkbrg.com
About Dynamic Aerostructures
Dynamic Aerostructures, LLC are a manufacturer and supplier of
critical structural components and assemblies for the aerospace and
defense industry. They specialize in complex, large-format
structural airframe and wing components, large aluminum structures,
and complex assemblies for key aerospace and defense customers such
as Lockheed Martin, Northrop Grumman, and Boeing, among others.
They have one of the largest independent aerospace and defense
manufacturing sites in North America, operating out of 226,000
square feet across two facilities in Southern California.
Dynamic Aerostructures and its affiliates filed Chapter 11
petitions (Bankr. D. Del. Case No. 25-10292) on February 25, 2025.
At the time of the filing, listed between $10 million and $50
million in assets and between $50 million and $100 million in
liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Chipman Brown Cicero & Cole, LLP and Ropes &
Gray, LLP as bankruptcy counsels; Berkeley Research, LLC as
financial advisor; and Configure Partners, LLC as investment
banker. Kurtzman Carson Consultants, LLC is the notice, claims,
balloting and solicitation agent.
DYNAMIC AEROSTRUCTURES: Taps Verita Global as Admin. Advisor
------------------------------------------------------------
Dynamic Aerostructures, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to hire Kurtzman Carson
Consultants, LLC dba Verita Global as administrative advisor.
The firm will provide these services:
(a) assisting with, among other things, the preparation of the
Debtors' schedules of assets and liabilities, schedules of
executory contracts and unexpired leases and statements of
financial affairs;
(b) assisting with, among other things, solicitation, balloting,
tabulation and calculation of votes, as well as preparing any
appropriate reports required in furtherance of confirmation of any
chapter 11 plan;
(c) generating an official ballot certification and testifying,
if necessary, in support of the ballot tabulation results for any
chapter 11 plan(s) in the chapter 11 cases;
(d) generating, providing and assisting with claims objections,
exhibits, claims reconciliation and related matters; and
(e) providing such other claims processing, noticing,
solicitation, balloting and administrative services, but not
included in the Section 156(c) Application, as may be requested by
the Debtors from time to time.
The firm will be paid at its standard hourly rates and will be
reimbursed for expenses incurred.
Prior to the Petition Date, the Debtors provided Verita an advance
in the amount of $30,000 which was received by Verita on Feb 6,
2025, and an advance in the amount of $20,000 which was received by
Verita on Feb 18, 2025.
Evan Gershbein, executive vice president at Kurtzman Carson
Consultants LLC dba Verita Global, 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:
Evan Gershbein
Kurtzman Carson Consultants LLC
dba Verita Global
222 N. Pacific
Coast Highway, 3rd Floor
El Segundo, CA 90245
About Dynamic Aerostructures
Dynamic Aerostructures, LLC are a manufacturer and supplier of
critical structural components and assemblies for the aerospace and
defense industry. They specialize in complex, large-format
structural airframe and wing components, large aluminum structures,
and complex assemblies for key aerospace and defense customers such
as Lockheed Martin, Northrop Grumman, and Boeing, among others.
They have one of the largest independent aerospace and defense
manufacturing sites in North America, operating out of 226,000
square feet across two facilities in Southern California.
Dynamic Aerostructures and its affiliates filed Chapter 11
petitions (Bankr. D. Del. Case No. 25-10292) on February 25, 2025.
At the time of the filing, listed between $10 million and $50
million in assets and between $50 million and $100 million in
liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Chipman Brown Cicero & Cole, LLP and Ropes &
Gray, LLP as bankruptcy counsels; Berkeley Research, LLC as
financial advisor; and Configure Partners, LLC as investment
banker. Kurtzman Carson Consultants, LLC is the notice, claims,
balloting and solicitation agent.
EASTERN COLORADO: To Sell New Mexico Property to Michael Weiland
----------------------------------------------------------------
Eastern Colorado Seeds, LLC and affiliates, ECS Farms LLC and
Pinnacol Holdings LLC, seek permission from the U.S. Bankruptcy
Court for the District of Colorado, to sell New Mexico Real
Property in a private sale, free and clear of liens, interests, and
encumbrances.
The Debtor's Property for sale is located at (5136 N. Prince
Street, Clovis New Mexico 88101 with a purchase price of $315,000.
The Debtor also seeks to pay the broker's 6.0% commission estimated
at $18,900, pay $225,000 to American
AgCredit as the secured creditor, and to pay customary closing
costs.
The Debtors, which are owned by Clayton Russel Smith and Christine
Laurene Smith, are a large seed farming and sales operation.
The Debtors financed the business in part with various loans from
American AgCredit, FLCA and American AgCredit, PCA, for which the
Debtors owe approximately $17,000,000, which has a security
interest in substantially all of Seeds', Farms', and Pinnacol's
assets. American AgCredit has a security interest in certain of the
Smiths’ assets, including certain real owned by
Smiths.
The Debtors no longer conduct operations from the New Mexico
Property and do not store inventory or other material personal
property at the New Mexico Property, resulting Seeds to hire the
broker to list and market the New Mexico Property.
The Debtors enter into a purchase agreement with Michael and Melisa
Weiland to purchase the property in the purchae price of $315,000.
The sale has a good faith deposit of $1,000 and the contract
contemplates payment of the Broker's
commission of 6% and customary closing costs.
The Debtors believe that the proposed sale of the New Mexico
Property is a proper exercise of its business judgment.
The Debtors propose to pay all customary closing costs and
commissions from sale
proceeds, all as provided in the Contract, summarized as follows:
-- commissions of 6% to the Broker, estimated at $18,900;
-- title policy estimated at $754;
-- 1/2 of the closing services fee estimated at $250;
-- recording fees estimated at $30;
-- survey fees estimated at $750;
-- septic system inspection estimated at $1,000; and
-- prorated property taxes.
About Eastern Colorado Seeds, LLC
Eastern Colorado Seeds, LLC is a full-service seed company offering
a wide range of agricultural seeds, including grains, forages,
reclamation seeds, and specialty products like pulses, millets, and
sunflowers. With locations in Burlington, CO, Dumas, TX, and
Clovis, NM, the company ensures efficient delivery and a consistent
supply of high-quality products to its customers. The knowledgeable
team at Eastern Colorado Seeds specializes in crop advisory,
precision technology, and livestock nutrition.
Eastern Colorado Seeds LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Col. Case No.: 25-10244) on January
15, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Joseph G Rosania Jr. handles the case.
The Debtor is represented by Andrew W. Johnson, Esq. at Onsager
Fletcher Johnson LLC.
ECLIPSE FARMINGDALE: Unsecureds Will Get 100% of Claims in Plan
---------------------------------------------------------------
Eclipse Farmingdale, LLC, filed with the U.S. Bankruptcy Court for
the Eastern District of New York a Disclosure Statement describing
Chapter 11 Plan dated March 4, 2025.
The Debtor operates one fitness gym in Farmingdale, New York (the
"Gym"). The Gym is currently being operated as a "Blink Fitness"
franchise. Allen Pinero and Eric Purther are the managing members
of the Debtor.
The Gym is operated by the Debtor from leased commercial real
property located at 450 Main Street, Farmingdale, NY 11735 (the
"Premises"), which real property is leased from Farmingdale
Commons, LLC under a Lease Agreement dated December 2018 which the
Debtor intends to assume through its reorganization and continued
to use to operate the Gym.
The Debtor continues to operate the Gym post-petition, and earnings
from operation of the Gym is the Debtor's main source of income.
General unsecured creditors (non-insiders) are classified in Class
5, and will receive a distribution of 100% of their allowed claims,
to be distributed in annual installments commencing January 15,
2026.
General unsecured creditors (insiders) are classified in Class 6,
and will receive a distribution of 3% of their allowed claims, or
alternatively approximately 29% of their allowed claims, contingent
upon the alternative treatment of the secured claim of Firestone
Financial, LLC in Class 1, to be distributed in annual installments
commencing January 15, 2026.
Class 5 consists of general unsecured claims (undisputed). The
allowed unsecured claims total $116,097.96. This Class will receive
an annual payment of $23,219.60 from January 15, 2026 to January
15, 2030. This Class will receive a distribution of 100% of their
allowed claims.
The Debtor's managing members shall retain their interest in the
Debtor following confirmation in consideration of the new value
being made in support of confirmation of the Plan. They shall be
employed by the reorganized Debtor.
Payments and distributions under the Plan will be funded by the
following:
* the Debtor's revenues from operation of the Gym;
* Loan of Eric Purther, a managing member of the Debtor, to be
used by the Debtor to rebrand and structure its operations
following the rejection of the "Blink Fitness" franchise agreement,
and/or to pay down the secured claim of Firestone Financial, LLC.
A full-text copy of the Disclosure Statement dated March 4, 2025 is
available at https://urlcurt.com/u?l=Cb2LBi from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Joseph M. Shapiro, Esq.
Melinda D. Middlebrooks, Esq.
Middlebrooks Shapiro, P.C.
P.O. Box 1630
Belmar, NU 07719-1630
Tel: (973) 218-6877
Fax: (973) 218-6878
Email: middlebrooks@middlebrooksshapiro.com
jshapiro@middlebrooksshapiro.com
About Eclipse Farmingdale
Eclipse Farmingdale LLC -- https://www.locations.blinkfitness.com/
-- doing business as Blink Fitness Farmingdale, is a gym operator.
Eclipse Farmingdale LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-73019) on Aug. 1,
2024. In the petition filed by Eric Purther, as managing member,
the Debtor estimated assets between $100,000 and $500,000 and
estimated liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Alan S. Trust oversees the case.
The Debtor is represented by Joseph Shapiro, Esq. at Middlebrooks
Shapiro, P.C.
ECO-PRESERVATION SERVICES: Trustee Taps Long as Special Counsel
---------------------------------------------------------------
Brian Walding, the Trustee of ECO-Preservation Services, L.L.C.
seeks approval from the U.S. Bankruptcy Court for the Northern
District of Alabama to employ Long and Upton, LLC as special
counsel.
The firm will provide representation of the Estate in connection
with the claims for and against D. R. Horton, Inc.- Birmingham and
any related entities, including but not limited to, objecting to
the claims of D. R. Horton, Inc. — Birmingham filed in this
bankruptcy case and representing the estate in adversary
proceedings or contested matters in this bankruptcy case or in any
other proceedings in state and federal court related to D. R.
Horton, Inc. — Birmingham or related entities.
The firm will be paid at these rates:
Harry P. Long $440 per hour
Stacy L. Upton $300 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Harry P. Long, Esq., a partner at Long and Upton, 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:
Harry P. Long, Esq.
The Law Offices of Harry P. Long, LLC
Long and Upton, LLC.
P. O. Box 1468
Anniston, AL 36202
Tel: (256) 237-3266
About ECO Preservation Services
ECO Preservation, LLC is a provider of water, sewage and other
systems. The company is based in Leeds, Ala.
ECO Preservation filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Ala. Case No. 22-02429) on Oct. 5,
2022. In the petition filed by its managing member, J. Michael
White, the Debtor reported between $1 million and $10 million in
both assets and liabilities.
The case is jointly administered with the Chapter 11 cases filed by
SERMA Holdings, LLC (Bankr. N.D. Ala. Case No. 22-02430) and Mr.
White (Bankr. N.D. Ala. Case No. 22-02431) on Oct. 5, 2022. SERMA
Holdings listed up to $50,000 in assets and up to $10 million in
debt.
The Debtors are represented by Harry P. Long, Esq., at The Law
Offices of Harry P. Long, LLC.
EDUCATIONAL DEVELOPMENT: Taps Keen-Summit for Tulsa HQ Sale
-----------------------------------------------------------
On March 21, 2025, Educational Development Corporation (NASDAQ:
EDUC) (http://www.edcpub.com)executed a new brokerage agreement
with Keen-Summit Capital Partners, LLC, to assist with the
marketing and sale of the Company's headquarters and distribution
warehouse located at 5400-5402 South 122nd East Avenue, Tulsa,
Oklahoma 74146, the Company disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission.
The Agreement offers Keen-Summit the opportunity to list and
provide sale opportunities of the Hilti Complex for a term of nine
months, along with providing other services customary with
brokerage agreements. The Agreement includes the engagement of
McGraw Davisson Stewart, LLC, to provide local services as a
licensed broker in the state of Oklahoma.
About Educational Development Corp
Tulsa, Okla.-based Educational Development Corp is the owner and
exclusive publisher of Kane Miller children's books; Learning
Wrap-Ups, maker of educational manipulatives; and SmartLab Toys,
maker of STEAM-based toys and games. It is also the exclusive
United States Multi-Level Marketing distributor of Usborne
Publishing Limited children's books. Significant portions of our
existing inventory volumes are concentrated with Usborne.
Educational Development Corp sells its products through two
separate divisions, PaperPie and Publishing.
As of August 31, 2024, the Company had $85,194,900 in total
assets,
$42,656,300 in total liabilities, and $42,538,600 in total
shareholders' equity.
According to the Company's Quarterly Report on Form 10-Q Report
for
the quarterly period ended August 31, 2024, the short-term
duration
of the Revolving Loan and uncertainty of the bank's ongoing
support
beyond January 4, 2025, along with recurring operating losses and
other items, raise substantial doubt over the Company's ability to
continue as a going concern. To address these concerns, the
Company
has taken steps in its plans to reduce debt by selling owned real
estate. The proceeds from the sale are expected to pay off the
Term
Loans and Revolving Loan. Following the loan payoff, management
plans to fund ongoing operations with limited borrowings through
local banks or other financing sources. In addition, management's
plans include reducing inventory which will generate free
cashflows
and building the active PaperPie Brand Partners to pre-pandemic
levels. Although there is no guarantee these plans will be
successful, management believes these plans, if achieved, will
alleviate the substantial doubt about continuing as a going
concern
and generate sufficient liquidity to meet the Company's
obligations
as they become due over the next 12 months.
EISNER BROS: Seek Chapter 11 Bankruptcy in New York
---------------------------------------------------
On March 25, 2025, Eisner Bros. Realty Corp. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of New York. According to court filing, the
Debtor reports 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 Eisner Bros. Realty Corp.
Eisner Bros. Realty Corp. is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
Eisner Bros. Realty Corp. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-41389) on March
25, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million.
The Debtor is represented by Joshua R. Bronstein, Esq. at JOSHUA R.
BRONSTEIN & ASSOCIATES, PLLC.
ELETSON HOLDINGS: New Owners, Levona Want Atty. Removal Delayed
---------------------------------------------------------------
Emily Sawicki of Law360 reports that the new owners of the
reorganized international shipping group Eletson, along with a
creditor-turned-affiliate, have urged the Second Circuit to deny
Reed Smith LLP's emergency motion for a stay in a lawsuit over
enforcing a $102 million arbitral award. The law firm is fighting
to continue representing Eletson's pre-bankruptcy shareholders.
About Eletson Holdings
Eletson Holdings Inc. is a family-owned international shipping
company, which touts itself as having a global presence with
headquarters in Piraeus, Greece as well as offices in Stamford,
Connecticut, and London.
At one time, Eletson claimed to own and operate one of the world's
largest fleets of medium and long-range product tankers and boasted
a fleet consisting of 17 double hull tankers with a combined
capacity of 1,366,497 dwt, 5 LPG/NH3 carriers with a combined
capacity of 174,730 cbm and 9 LEG carriers with capacity of 108,000
cbm.
Eletson Holdings, a Liberian company, is Eletson's ultimate parent
company and is the direct parent and owner of 100% of the equity
interests in the two other debtors, Eletson Finance (US) LLC, and
Agathonissos Finance LLC.
Eletson and its two affiliates were subject to involuntary Chapter
7 bankruptcy petitions (Bankr. S.D.N.Y. Case No. 23-10322) filed on
March 7, 2023 by creditors Pach Shemen LLC, VR Global Partners,L.P.
and Alpine Partners (BVI), L.P. The petitioning creditors are
represented by Kyle J. Ortiz, Esq., at Togut, Segal & Segal, LLP.
On Sept. 25, 2023, the Chapter 7 cases were converted to Chapter 11
cases.
The Honorable John P. Mastando, III is the case judge.
Derek J. Baker, Esq., represents the Debtors as bankruptcy
counsel.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors. The committee tapped Dechert, LLP as its legal
counsel.
ELITE SCHOOL: Seeks Approval to Hire Magnum Advisors as Accountant
------------------------------------------------------------------
Elite School Bus Company, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Maryland to employ Magnum
Advisors, CPA as its accountant.
The firm will provide these services:
(a) provide continuing accounting advice and services
necessary in the ordinary course of the Debtor's business;
(b) provide accounting advice and assistance with respect to
the formation, preparation, and presentation of the Debtor's plan
of reorganization;
(c) provide all reasonable accounting and financial records
and advice as may be requested by the Office of the U.S. Trustee if
any;
(d) assist in the preparation of periodic reports of
operations as may be required;
(e) assist in the preparation of all tax returns required to
be filed by the Debtor during the course of this proceeding;
(f) advise as to the tax consequences of any proposed plan of
reorganization; and
(g) provide any and all other tax and accounting services as
requested by the Debtor.
The firm will be billed at a rate of $300 per hour plus
reimbursement for expenses incurred.
The firm will receive a retainer of $700 from the Debtor.
Nathan McKnight, CPA, a member at Magnum Advisors, 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:
Nathan McKnight, CPA
Magnum Advisors CPA
998 Hospitality Way, Ste. 202
Aberdeen, MD 21001
Telephone: (410) 272-1300
About Elite School Bus Company
Elite School Bus Company, LLC operates a school bus company that
provides services primarily to Cecil County public schools. With 23
bus routes, the company is responsible for transporting children on
23 buses to and from school.
Elite School Bus Company filed Chapter 11 petition (Bankr. D. Md.
Case No. 25-11526) on February 25, 2025, listing up to 10 million
in both assets and liabilities. Rebecca Minks, manager, signed the
petition.
Judge David E. Rice oversees the case.
The Debtor tapped Mary Fran Ebersole, Esq., at Tydings & Rosenberg
LLP as counsel and Magnum Advisors, CPA as accountant.
EMERALD HOLDING: Moody's Assigns 'B2' CFR, Outlook Stable
---------------------------------------------------------
Moody's Ratings assigned a B2 corporate family rating and B2-PD
probability of default rating to Emerald Holding, Inc. (Emerald).
An SGL-1 Speculative Grade Liquidity rating was also assigned to
Emerald Holding, Inc. Concurrently, Moody's affirmed Emerald X,
Inc.'s senior secured first-lien bank credit facility, which
includes a $110 million revolver due 2030 and a $515 million term
loan due 2032, at B2. Emerald X, Inc.'s B2 CFR, B2-PD PDR, and
SGL-1 rating were withdrawn. The outlook on both entities is
stable. Emerald is a New York City-based operator of
business-to-business ("B2B") events and trade shows.
The affirmation of the credit facility ratings reflects the
company's elevated debt-to-EBITDA leverage Moody's expects will
decline below 5.0x over the next 12 to 18 months through good
earnings growth following the recent announcement of two
acquisitions, both of which Moody's views as EBITDA accretive, and
therefore a positive credit development.
RATINGS RATIONALE
Emerald's B2 CFR reflects high debt to EBITDA of over 5x as of
December 31, 2024, reflecting Moody's standard adjustments and pro
forma for an incremental term loan issuance in January 2025 and a
full year of earnings from its recently announced acquisitions. The
rating also takes into consideration the company's cyclical
business model given its reliance on customers' marketing spend,
overall macroeconomic activity and its narrow operating and
geographic scope focused on US trade shows and other live events.
Emerald's operating metrics deteriorated as a result of the
challenging economic environment caused by event cancellations
during the COVID pandemic in 2020 and 2021, but are now mostly
recovered. Moody's expects low to mid-single digit percentage range
annual organic revenue growth to continue given the return of its
clients to live events.
Emerald's credit profile benefits from its position as one of the
leading operators of business-to-business events and trade shows
held in the US and its very good liquidity profile, with healthy
cash balances. Moody's expects debt-to-EBITDA to decrease to under
5x and free cash flow-to-debt of around 5% during the next 12 to 18
months, driven by organic revenue growth and EBITDA contribution
from its acquisitions of This is Beyond and Insurtech Insights.
Emerald has made several other modest sized acquisitions
historically and Moody's expects the company will consider
additional opportunistic acquisitions, mostly funded with cash from
operations, to bolster its scale and portfolio of events.
The SGL-1 liquidity rating reflects Emerald's very good liquidity
profile, supported by $195 million of cash and the fully available
$110 million revolver as of December 31, 2024. In 2024, Emerald
reinstated its common dividend to shareholders of about $12 million
annually for the first time since the pandemic as cash flows and
profitability margins have rebounded. Liquidity is also supported
by Moody's expectations that the company will produce strong free
cash flow-to-debt of about 5% during the next 12-18 months. The
term loan is covenant-lite and the revolver is subject to a first
lien net leverage ratio of 5.5x when over 35% ($38.5 million) of
the facility is drawn. Emerald's revolver expires in January of
2030, and Moody's do not anticipate the company will utilize the
revolver due to its strong cash position.
The stable outlook reflects Moody's expectations of good organic
revenue growth and EBITDA margin expansion which will lead to a
decline of debt-to-EBITDA leverage to under 5x during the next 12
to 18 months. Moody's also expects Emerald's free cash flow to
remain healthy while maintaining a very good liquidity profile.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Emerald expands its revenue size,
operating scope and customer span while increasing its EBITDA
margins. Quantitatively, if Moody's expects debt-to-EBITDA leverage
to be sustained at or below 4.5x and an improvement in free cash
flow generation sustained at or above 10% of debt, while
maintaining a strong liquidity position, it could lead to upward
pressure on the ratings.
The ratings could be downgraded due to poor operating performance,
or if debt-to-EBITDA increases and is expected to remain over 5.5x
or liquidity deteriorates. Ratings could also be downgraded if
revenue or profitability are negatively impacted by economic
weakness.
The B2 senior secured first lien bank credit facility rating,
consisting of a $515 million term loan due 2032 and a $110 million
revolver expiring in 2030, is in line with the B2 CFR, reflecting
the predominance of the credit facilities in Emerald's capital
structure. The credit facility is guaranteed on a secured,
first-priority basis by each of the borrower's present and future,
direct and indirect domestic subsidiaries. All guarantees are
secured by the assets of the guarantor.
Emerald Holding, Inc., publicly traded under the ticker EEX and
headquartered in New York City, is a leading operator of
business-to-business events and trade shows. The company operates
trade shows in several industry sectors (Commerce, Design, Creative
& Technology, and Other). Funds managed by Onex and its affiliates
own a majority of the company. Emerald is considered a controlled
company as defined by the New York Stock Exchange. The company
generated approximately $400 million in revenue during the year
ended December 31, 2024.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
EMERGENT BIOSOLUTIONS: Closes Sale of Baltimore-Bayview Site
------------------------------------------------------------
Emergent BioSolutions Inc. (NYSE:EBS) on March 19, 2025, announced
that it has completed the sale of its Baltimore-Bayview drug
substance manufacturing facility to Syngene International. Emergent
received approximately $36.5 million at closing, which is subject
to customary post-closing adjustments.
Pursuant to the sale, Syngene acquired the assets and equipment
associated with the Baltimore-Bayview facility. In addition,
Emergent retains the rights to secure manufacturing services and
capacity at the facility for future growth and pandemic response
production in collaboration with Syngene.
"This deal enables us to streamline operations, while maintaining
flexibility for future product demand." said Joe Papa, president
and CEO of Emergent. "As we continue our multi-year transformation,
we are well positioned to execute on our turnaround initiatives and
drive sustainable, long-term growth."
For Emergent, Truist served as financial advisor, and Covington &
Burling LLP served as legal counsel in connection with this
transaction.
About Emergent BioSolutions
Headquartered in Gaithersburg, Md., Emergent BioSolutions Inc. is
a
global life sciences company focused on providing innovative
preparedness and response solutions addressing accidental,
deliberate, and naturally occurring public health threats. The
Company's solutions include a product portfolio, a product
development portfolio, and a contract development and
manufacturing
services portfolio.
As of Dec. 31, 2024, Emergent had $1.4 billion in total assets,
$906.9 million in total liabilities, and $482.8 million in total
stockholders' equity.
* * *
This concludes the Troubled Company Reporter's coverage of
Emergent
BioSolutions Inc. until facts and circumstances, if any, emerge
that demonstrate financial or operational strain or difficulty at
a
level sufficient to warrant renewed coverage.
EMPLOYBRIDGE HOLDING: S&P Upgrades ICR to 'CCC+', Outlook Negative
------------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on EmployBridge
Holding Co. to 'CCC+' from 'SD' (selective default). At the same
time, S&P assigned its 'B-' issue-level rating and '2' recovery
rating to the company's first-out term loan and delayed drawn term
loan and its 'CCC-' issue-level rating and '6' recovery rating to
its second-out term loan. The '2' recovery rating on the first-out
and delayed draw loans indicates its expectation for substantial
(50%-70%; rounded estimate: 70%) recovery, while the '6' recovery
rating on the second-out loan indicates its expectation for
negligible (0%-10%; rounded estimate: 0%) recovery due to its lower
priority in the capital structure.
The negative outlook reflects S&P's expectation that operational
challenges will continue to cause cash flow deficits and erode
liquidity in the next 12 months.
S&P said, "The 'CCC+' rating reflects our view that the company's
capital structure is unsustainable given our expectation for weak
credit metrics. EmployBridge operates in the highly cyclical
industrial staffing industry and continues to be severely impacted
by macroeconomic headwinds. Therefore, we believe that the company
is dependent upon favorable business conditions to improve its
financial performance to generate positive free cash flow and
reduce leverage. EmployBridge's S&P Global Ratings-adjusted
leverage exceeded 30x and its interest coverage stood at
approximately 0.3x for the 12 months ended Sept 30, 2024. The
company's performance over this period was impacted by its negative
S&P Global Ratings-adjusted EBITDA in the first quarter of 2024,
which largely stemmed from operational improvement initiatives that
we expect will roll off in 2025. Although we still forecast a
modest revenue decline in 2025, we expect EmployBridge will
modestly improve its leverage on the realization of benefits from
its cost-savings initiatives and the potential stabilization of its
industry in the second half of the year. That said, we forecast the
company's leverage will remain significantly elevated at more than
20x in 2025. However, if the macroeconomic headwinds impacting the
staffing industry begin to abate, we believe there is potential for
further deleveraging through an increase in the company's EBITDA
base.
"The company's new capital structure has improved its liquidity
position and debt maturity profile. We have revised our assessment
of EmployBridge's liquidity to adequate from less than adequate
following the transaction because it raised $325 million of new
money financing, including $225 million from the first-out term
loan and $100 million from the undrawn delayed draw term loan.
Management used a portion of these proceeds to repay its
outstanding ABL balance and add $30 million of cash to its balance
sheet. As part of the transaction, the company also pushed back its
debt maturities to January 2030.
"However, we expect EmployBridge's liquidity will deteriorate over
time because we believe current macroeconomic conditions will limit
its ability to generate free cash flow. While the company has
implemented several cost-savings initiatives to improve its margin
profile, we believe that it will generate negative cash flow in
2025 due to revenue challenges and elevated interest rates. We
expect EmployBridge will use its available liquidity to cover those
deficits. Additionally, we anticipate that the company will use
approximately $25 million in liquidity to pursue repurchase of its
franchises. to make franchise acquisitions that it will fund with
borrowings from its ABL facility. We also expect EmployBridge will
draw on the ABL to fund its working capital needs once industry
conditions improve.
"We believe EmployBridge's majority ownership by a financial
sponsor increases its financial risk.The company is majority owned
by financial sponsor Apollo Global Management Inc, which has a
history of pursuing debt-funded acquisitions. In November 2021,
EmployBridge acquired Hire Dynamics, a commercial staffing and
professional recruitment services provider, which it funded with a
mix of cash on hand, equity, and a $200 million fungible add-on to
its existing $725 million first-lien term loan due 2028. In
November 2022, the company acquired BlueCrew, which is an app-based
workforce management platform, which it funded with a mix of cash
on hand and equity. These debt-funded acquisitions left
EmployBridge with a minimal ratings cushion to absorb weaker
economic conditions. We believe Apollo 's majority ownership and
ability to dictate the company's strategy could lead it to adopt a
more-aggressive financial policy, such as by pursuing additional
debt-financed acquisitions or distributions, which could further
weaken its credit measures.
"The negative outlook reflects our expectation that operational
challenges will continue to cause cash flow deficits and erode
liquidity in the next 12 months."
ENGINE 22: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: Engine 22, LLC
514 Jackson Ave
New Orleans, LA 70130
Business Description: Engine 22, LLC is classified as a single
asset real estate entity under 11 U.S.C.
Section 101(51B). The Debtor holds full
ownership of the Engine 22 Historical
Firehouse located at 514 Jackson Avenue, New
Orleans, LA 70130, with an estimated value
of $1.4 million.
Chapter 11 Petition Date: March 27, 2025
Court: United States Bankruptcy Court
Eastern District of Louisiana
Case No.: 25-10575
Judge: Hon. Meredith S Grabill
Debtor's Counsel: Shermin Khan, Esq.
THE KHAN LAW FIRM, L.L.C.
2714 Canal Street Suite 300
New Orleans LA 70119
Tel: (504) 345-9608
E-mail: s.khan@sklawla.com
Total Assets: $1,402,500
Total Liabilities: $960,942
The petition was signed by John Orgon as managing member.
The Debtor included a list of its 20 largest unsecured creditors in
the petition, but the list was empty.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/P5W345I/Engine_22_LLC__laebke-25-10575__0001.0.pdf?mcid=tGE4TAMA
ENTECCO FILTER: Court Extends Cash Collateral Access to April 18
----------------------------------------------------------------
Entecco Filter Technology, Inc. received seventh interim approval
from the U.S. Bankruptcy Court for the Middle District of North
Carolina, Winston-Salem Division to use cash collateral until April
18.
The court authorized Entecco to use the cash collateral of PNC
Bank, National Association based on the company's four-week budget
projection. During this interim period, the company can use up to
110% of any line item in the budget.
PNC Bank has a lien on certain assets of the company based on a
$125,000 loan extended under a revolving line of credit issued in
July last year.
As protection for PNC's interest in the cash collateral, the court
granted the bank a lien on the company's post-petition assets to
the same extent as its pre-bankruptcy lien.
In case of any default or unauthorized use of funds, PNC can
request immediate relief, including termination of the company's
ability to use cash collateral.
The next hearing is scheduled for April 16.
About Entecco Filter Technology
Entecco Filter Technology, Inc., is a Delaware-based environmental
technology company, specializing in air purification systems and
filter products used in various industries.
Entecco filed Chapter 11 petition (Bankr. M.D.N.C. Case No.
24-50707) on September 19, 2024, listing between $1 million and $10
million in both assets and liabilities. James David Edgerton,
president and chief executive officer, signed the petition.
Judge Lena M. James oversees the case.
The Debtor is represented by James C. Lanik, Esq., at Waldrep Wall
Babcock & Bailey, PLLC.
Secured creditor PNC Bank, N.A. is represented by:
Brian D. Darer, Esq.
Parker Poe Adams & Bernstein, LLP
301 Fayetteville Street, Suite 1400
Raleigh, NC 27602
Telephone: (919) 828-0564
briandarer@parkerpoe.com
ENVIROSCENT INC: Seeks Cash Collateral Access
---------------------------------------------
Enviroscent, Inc. asked the U.S. Bankruptcy Court for the Northern
District of Georgia, Atlanta Division, for authority to continue
using cash collateral and provide adequate protection.
The Debtor asserts that continuing to use the cash collateral is
essential to pay for operational expenses, including wages,
insurance, taxes, and other business-related costs.
The Debtor acknowledges that creditors, First Corporate Solutions
and Alterna Capital Solutions, assert a security interest in the
cash collateral.
About Enviroscent Inc.
Enviroscent, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-62804) on December 3,
2024. In the petition signed by Kevin Coen, chief executive
officer, the Debtor disclosed up to $50 million in assets and up to
$10 million in liabilities.
Judge Jeffery W. Cavender oversees the case.
Cameron M. McCord, Esq., at Jones and Walden, LLC, represents the
Debtor as legal counsel.
EXACTECH INC: Gets Court Okay to Solicit Chapter 11 Plan Votes
--------------------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that on
March 27, 2025, a Delaware bankruptcy judge approved Exactech
Inc.'s disputed request to solicit creditor votes on its Chapter 11
plan after the implant maker agreed to incorporate a statement from
the unsecured creditors' committee in its disclosure, reflecting
the group's opposition to the deal.
About Exactech, Inc.
Exactech Inc. -- https://www.exac.com/ -- is a joint-replacement
implant manufacturer owned by TPG Capital.
Exactech Inc. and its affiliates sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-12441) on Oct.
29, 2024. In the petition filed by Donna H. Edwards, as general
counsel and senior vice president, Exactech estimated assets and
liabilities between $100 million and $500 million each.
Young Conaway Stargatt & Taylor, LLP serves as as co-counsel to the
Debtors. Riveron Management Services, LLC is the Debtors' chief
restructuring officer. Centerview Partners LLC is the investment
banker. Kroll Restructuring Administration LLC is the claims agent
and administrative advisor.
EXPRESS MOBILE: Seeks to Hire Smith Nale & Company as Accountant
----------------------------------------------------------------
Express Mobile Diagnostic Services, LLC seeks approval from the
U.S. Bankruptcy Court for the Western District of Pennsylvania to
employ Smith, Nale & Company, Inc. as accountant.
The firm will prepare the Debtor's tax returns, assist in
QuickBooks online, review and assist with coding, and update
depreciation schedules.
The firm will be paid at these rates:
Managing Partner $216 per hour
CPA $146 to $148 per hour
Staff Accountant $74 to $86 per hour
Accounting Assistant $54 per hour
Clerical Assistant $52 per hour
The accountant is a "disinterested person" within the meaning of
Section 101(14) of the Bankruptcy Code and as required by Section
327(a) of the Bankruptcy Code and will hold no interest adverse to
the Debtor and the bankruptcy estate for the matters for which he
is to be engaged.
The firm can be reached through:
Deana M. Lowmaster, CPA
Smith, Nale & Company, Inc.
327 North Main Street
Punxsutawney, PA 15767
Phone: (814) 938-3555
Fax: (814) 938-3553
Email: info@smithnaleandco-cpas.com
About Express Mobile Diagnostic Services
Express Mobile Diagnostic Services LLC is a medical and diagnostic
laboratory that offers x-ray scanning services for all major areas
of the body.
Express Mobile Diagnostic Services LLC sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-20255)
on January 31, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Brian C. Thompson, Esq., at Thompson Law Group PC serves as the
Debtor's counsel.
FINANCE OF AMERICA: Reports $35.7 Million Net Profit in 2024
------------------------------------------------------------
Finance of America Companies Inc. filed its Annual Report on Form
10-K with the U.S. Securities and Exchange Commission, reporting a
net profit of $35.7 million for the year ended December 31, 2024,
compared to a net loss of $218.2 million during the fiscal year
ended December 31, 2023.
As of December 31, 2024, the Company had an accumulated deficit of
$698.9 million.
As of December 31, 2024, the Company had $29.2 billion in total
assets, $28.8 billion in total liabilities, and $315.7 million in
total stockholders' equity.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/bdhpwpfu
About Finance of America
Plano, Texas-based Finance of America Companies Inc. is a financial
services holding company. Through its operating subsidiaries, it
operates as a modern retirement solutions platform, providing
customers with access to an innovative range of retirement
offerings centered on the home. In addition, Finance of America
offers capital markets and portfolio management capabilities to
optimize distribution to investors.
* * *
As reported by the Troubled Company Reporter in November 2024,
Fitch Ratings has downgraded the Long-Term Issuer Default Ratings
(IDRs) of Finance of America Companies Inc. and its subsidiaries,
Finance of America Equity Capital LLC and Finance of America
Funding LLC (together, FOA) to 'RD' (Restricted Default) from 'C'.
The action follows the completion of the company's debt
restructuring on Oct. 31, 2024, which Fitch views as a distressed
debt exchange (DDE).
Fitch has also upgraded FOAs IDRs to 'CCC' from 'RD' subsequent to
the DDE.
Fitch has assigned a rating of 'CCC-' with a Recovery Rating of
'RR5′ to Finance of America Funding, LLC's new $196 million
senior secured notes due in 2026 and $147 million convertible
senior secured notes due in 2029 issued as part of the exchange.
Concurrently, Fitch has also downgraded Finance of America Funding
LLC's unsecured debt rating to 'RD" from 'C'/'RR6′ and withdrawn
the rating as 98% of the notes were exchanged into the new secured
notes.
FLORIDA MAGICAL: Hires Latham Luna Eden & Beaudine LLP as Counsel
-----------------------------------------------------------------
Florida Magical Homes LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire Latham, Luna, Eden
& Beaudine, LLP as its bankruptcy counsel.
The firm's services include:
a. advising as to the Debtor's rights and duties in this
case;
b. preparing pleadings related to this case, including a
disclosure statement and plan of reorganization; and
c. taking and all other necessary action incident to the
proper preservation and administration of this estate.
The firm will be paid at these rates:
Attorneys $500 per hour
Junior paraprofessionals $105 per hour
The firm received from the Debtor a retainer of $26,738.
Latham, Luna, Eden & Beaudine will also be reimbursed for
reasonable out-of-pocket expenses incurred.
Daniel A. Velasquez, Esq., a partner at Latham, Luna, Eden &
Beaudine, LLP, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Daniel A. Velasquez, Esq.
Latham, Luna, Eden & Beaudine, LLP
201 S. Orange Ave., Suite 1400
Orlando, FL 32801
Telephone: (407) 481-5800
Facsimile: (407) 481-5801
About Florida Magical Homes
Florida Magical Homes LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01093) on
February 26, 2025, with $0 to $50,000 in assets and $100,001 to
$500,000 in liabilities.
Judge Tiffany P. Geyer presides over the case.
Daniel A. Velasquez, Esq., at Latham, Luna, Eden & Beaudine, LLP
represents the Debtor as legal counsel.
FLY7 INSTALLATIONS: Gets Interim OK to Use Cash Collateral
----------------------------------------------------------
Fly7 Installations, LLC got the green light from the U.S.
Bankruptcy Court for the Eastern District of Virginia, Norfolk
Division, to use cash collateral.
At the hearing held on March 21, the bankruptcy court granted the
Debtor's motion to use cash collateral on an interim basis and
scheduled a final hearing on May 20.
The Debtor needs to use cash collateral to pay ordinary and
necessary expenses including, but not limited to, payroll, taxes,
insurance, and ordinary expenses.
Due to contractor and staffing issues in certain delivery contracts
located outside of the Debtor's primary business in Virginia, the
Debtor lost a large percentage of their work with XPO Last Mile,
Inc. This greatly reduced their income and the Debtor has been
working efficiently to diversify their contracts and build back up
their income. However, it took some time to build relationships and
gain other contracts while still addressing the issues that led to
the loss of a large percentage of their primary contract. In the
interim, the Debtor had to maintain certain expenses and began
looking for alternative funding sources for their business to help
cover those expenses until their income could build back to what
was needed.
The secured lenders with an interest in the cash collateral for the
Debtor are as follows;
1. Northeast Bank filed a UCC Financing Statement on September
20, 2023
2. On Deck / ODK Capital LLC, filed a UCC Financing Statement
through Corporation Service Company on May 22, 2024.
3. LG Funding LLC filed a UCC Financing Statement through First
Corporate Solutions on October 2, 2024.
4. Blade Funding filed two UCC Financing Statements through
First Corporate Solutions and Lien Solutions respectively on
January 8, 2025.
5. LiteFund Solutions LLC filed a UCC Financing Statement
through Lien Solutions on January 30, 2025.
6. Finvest / Finvest VA LLC filed a UCC Financing Statement
through Lien Solutions on February 11, 2025.
As of the Petition Date, March 8, 2025, accounts receivable
totaling $68,949, which accounts for the Secured Lender's cash
collateral.
The Debtor will use the cash collateral, which exists in the form
of receivables paid to the Debtor by the Debtor's clients, to pay
to Northeast Bank the monthly amount of $2,038.
About Fly7 Installations LLC
Fly7 Installations, LLC filed Chapter 11 petition (Bankr. E.D. Va.
Case No. 25-70482) on March 8, 2025, listing up to $500,000 in
assets and up to $1 million in liabilities. Jada Rose Hamlett,
company owner, signed the petition.
Carolyn Bedi, Esq., at Bedi Legal, P.C., represents the Debtor as
legal counsel.
FRANCHISE GROUP: Hires Kirkland & Ellis as Bankruptcy Counsel
-------------------------------------------------------------
Franchise Group Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Kirkland &
Ellis LLP and Kirkland & Ellis International LLP as their
attorneys.
The firm's services include:
a. advising the Debtors with respect to their powers and
duties as debtors in possession in the continued management and
operation of their businesses and properties;
b. advising and consulting on the conduct of these chapter 11
cases, including all of the legal and administrative requirements
of operating in chapter 11;
c. attending meetings and negotiating with representatives of
creditors and other parties in interest;
d. taking all necessary actions to protect and preserve the
Debtors' estates, including prosecuting actions on the Debtors'
behalf, defending any action commenced against the Debtors, and
representing the Debtors in negotiations concerning litigation in
which the Debtors are involved, including objections to claims
filed against the Debtors' estates;
e. preparing pleadings in connection with these chapter 11
cases, including motions, applications, answers, orders, reports,
and papers necessary or otherwise beneficial to the administration
of the Debtors' estates;
f. advising the Debtors in connection with any potential sale
of assets;
g. appearing before the Court and any appellate courts to
represent the interests of the Debtors' estates;
h. advising the Debtors regarding tax matters;
i. taking any necessary action on behalf of the Debtors to
negotiate, prepare, and obtain approval of a disclosure statement
and confirmation of a chapter 11 plan and all documents related
thereto; and
j. performing all other necessary legal services for the
Debtors in connection with the prosecution of these chapter 11
cases, including: (i) advising the Debtors on matters related to
post-petition financing and the continued use of cash collateral;
(ii) analyzing the Debtors' leases and contracts and the assumption
and assignment or rejection thereof; (iii) analyzing the validity
of liens against the Debtors' assets; and (iv) advising the Debtors
on corporate and litigation matters.
Kirkland's current hourly rates for matters related to these
chapter 11 cases range as follows:
Partners $1,295 to $2,675
Of Counsel $875 to $2,245
Associates $785 to $1,625
Paraprofessionals $355 to $705
The following is provided in response to the request for additional
information set forth in Paragraph D.1. of the Revised UST
Guidelines:
a. Question: Did Kirkland agree to any variations from, or
alternatives to, Kirkland's standard billing arrangements for this
engagement?
Answer: No. Kirkland and the Debtors have not agreed to any
variations from, or alternatives to, Kirkland's standard billing
arrangements for this engagement. The rate structure provided by
Kirkland is appropriate and is not significantly different from (a)
the rates that Kirkland charges for other non-bankruptcy
representations or (b) the rates of other comparably skilled
professionals.
b. Question: Do any of the Kirkland professionals in this
engagement vary their rate based on the geographic location of the
Debtors' chapter 11 cases?
Answer: No. The hourly rates used by Kirkland in representing
the Debtors are consistent with the rates that Kirkland charges
other comparable chapter 11 clients, regardless of the location of
the chapter 11 case.
c. Question: If Kirkland has represented the Debtors in the 12
months prepetition, disclose Kirkland's billing rates and material
financial terms for the prepetition engagement, including any
adjustments during the 12 months prepetition. If Kirkland's billing
rates and material financial terms have changed post-petition,
explain the difference and the reasons for the difference.
Answer: Kirkland did not represent the Debtors in the 12
months prepetition.
d. Question: Have the Debtors approved Kirkland's budget and
staffing plan, and, if so, for what budget period?
Answer: Yes, for the period from February 14, 2025 through
June 13, 2025.
As disclosed in court filings, the firms are "disinterested"
pursuant to Section 101(14) of the Bankruptcy Code.
The firms can be reached at:
Joshua A. Sussberg, Esq.
Joshua A. Sussberg, P.C.
Kirkland & Ellis, LLP
Kirkland & Ellis International, LLP
601 Lexington Avenue
New York, NY 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
Email: joshua.sussberg@kirkland.com
About Franchise Group Inc.
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy's Home Furnishings and Sylvan Learning
Systems, Inc.
Franchise Group, Inc. and its affiliates filed their voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D. Del. Lead Case No. 24-12480) on Nov. 3, 2024, listing
$1,000,000,001 to $10 billion in both assets and liabilities. The
petitions were signed by David Orlofsky as chief restructuring
officer.
Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor,
LLP are serving as legal counsel, AlixPartners is serving as
financial advisor and Chief Restructuring Officer, and Ducera
Partners is serving as investment banker to the Company. Paul
Hastings LLP is serving as legal counsel and Lazard is serving as
investment banker to the first lien ad hoc group.
FTX TRADING: Prepares $11.4B Cash for Distribution to Creditors
---------------------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that FTX has
$11.4 billion set aside for creditor payouts but must still address
a vast number of claims against the failed cryptocurrency exchange,
an attorney for the company told a Delaware bankruptcy judge on
March 28, 2025.
Steven Church of Bloomberg News also reports that FTX will start
paying its main creditors at the end of May 2025 using a cash hoard
of $11.4 billion the company has collected since its shut down.
Although minor creditors, who hold what FTX classified as
"convenience claims," have already started getting payments, the
company will make its first payment to the main group of debt
holders on May 30, bankruptcy attorney Andrew Dietderich told the
judge who recently took over management of the Chapter 11 case.
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases. White
collar crime specialist Mark S. Cohen has reportedly been hired to
represent SBF in litigation. Lawyers at Paul Weiss previously
represented SBF but later renounced representing the entrepreneur
due to a conflict of interest.
FULLER'S SERVICE: Gets Extension to Access Cash Collateral
----------------------------------------------------------
Fuller's Service Center, Inc. received another extension from the
U.S. Bankruptcy Court for the Northern District of Illinois to use
cash collateral.
The second interim order authorized the company to use its secured
creditors' cash collateral from March 13 to May 31 to pay its
expenses. It also authorized the company to obtain a limited
secured financing from Heartland Bank & Trust Company.
Aside from Heartland, the other secured creditors that assert an
interest in the cash collateral are the U.S. Small Business
Administration and Heartland and Carroll's, LLC, doing business as
National Tire Wholesale.
As protection, the secured creditors will be granted security
interests in the company's post-petition assets.
In addition, Heartland will be granted a "super-priority" claim
over all other liens and claims for unpaid post-petition funds
advanced. Heartland will receive repayment first before other
creditors, including administrative claimants.
A final hearing is set for May 21.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/pYgEK from PacerMonitor.com.
About Fuller's Service Center Inc.
Fuller's Service Center, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-01345) on
January 29, 2025, listing up to $1 million in assets and up to $10
million in liabilities. Douglas A. Fuller Jr., president of
Fuller's Service Center, signed the petition.
Judge Deborah L. Thorne oversees the case.
David K. Welch, Esq., at Burke, Warren, MacKay & Serritella, P.C.,
represents the Debtor as legal counsel.
GATES CORPORATION: Moody's Assigns Ba3 CFR & Alters Outlook to Pos.
-------------------------------------------------------------------
Moody's Ratings assigned a Ba3 corporate family rating and Ba3-PD
probability of default rating to Gates Corporation. Moody's
affirmed the Ba2 ratings on Gates Corporation's backed senior
secured bank credit facilities and the B2 rating on its backed
senior unsecured notes. Moody's changed the outlook to positive
from stable. Moody's also assigned a SGL-1 Speculative Grade
Liquidity (SGL) rating to Gates Corporation.
At the same time, Moody's withdrew Gates Global LLC's Ba3 CFR and
Ba3-PD PDR. Prior to the withdrawal the outlook was stable. Gates
Global's SGL Rating of SGL-1 was also withdrawn.
Moody's assigned the CFR and PDR to Gates Corporation as that
entity is the borrower of the rated backed senior secured bank
credit facilities and senior unsecured notes following a June 2024
refinancing. Gates Global LLC had been the borrower prior to the
refinancing.
The affirmation of the instrument ratings and positive outlook
reflect Moody's expectations that Gates Corporation's leverage will
decrease further over the next 12-18 months underpinned by stronger
earnings. Price actions and continued cost and expense control will
drive higher earnings and stronger positive free cash flow.
Governance factors were a key consideration in the rating outcome,
especially board structure and policies. Gates Corporation's
ultimate parent Gates Industrial Corporation plc repurchased a
portion of its equity ownership from The Blackstone Group L.P. in
2024. Blackstone also sold its equity in Gates Industrial
Corporation in several secondary equity offerings in 2024. After
the repurchase and secondary equity offerings and Blackstone's exit
from the board of directors effective December 31, 2024, Blackstone
does not have any board representation. The exit of the private
equity sponsor will allow Gates Corporation to adopt a more
conservative financial policy. The company's board is now comprised
of seven independent directors of eight total members.
RATINGS RATIONALE
Gates Corporation's Ba3 CFR reflects its strong presence in the
highly engineered industrial components market with a focus on
manufacturing power transmission and fluid power units. Gates
Corporation benefits from its global scale, brand strength and
dominant position as a supplier across automotive and diverse
industrial end markets. The company has a substantial aftermarket
presence (about 68% of its total revenue) that supports EBITA
margin and strong cash flow. Profit margin will continue to expand
from innovative advances in new materials and manufacturing
efficiencies.
However, Gates Corporation is exposed to highly cyclical end
markets such as oil and gas, agriculture and construction. The
fragmented nature of the business leads to intense competition and
pricing pressure, especially in emerging markets.
Moody's expects debt-to-LTM EBITDA to improve to 3.4x over the next
12-18 months, underpinned by higher earnings. Moody's also expects
revenue to remain stable over the next 12-18 months, driven by
continued solid demand from the automotive replacement market and
improved demand from the personal mobility segment offset by
continued weak demand from the construction and agriculture end
markets.
Moody's forecasts that Gates Corporation's EBITA margin will
improve slightly over the next 12-18 months, owing to higher
prices, more revenue contribution from the higher margin
aftermarket business and strong cost and expense control.
Moody's also forecasts that Gates Corporation's liquidity will be
very good, as reflected in the SGL rating of SGL-1. Its liquidity
is supported by Moody's expectations for free cash flow of more
than $280 million over the next 12 months, driven by higher
earnings and improved working capital management. The liquidity is
further underpinned by access to its $500 million secured revolving
credit facility. Moody's do not expect the company to trigger the
availability based springing covenant of 4.5x maximum first lien
net leverage under the secured revolving credit facility.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if debt-to-EBITDA approaches 3.25x
and EBITA-to-interest approaches 5.0x. Moody's would also expect
maintenance of a conservative financial policy, including a prudent
approach to returns to shareholders. Maintenance of very good
liquidity would also be required for a rating upgrade.
A ratings downgrade would be driven by debt-to-EBITDA sustained
above 4.0x or EBITA-to-interest below 3.0x. Debt funded
acquisitions, share buybacks, or shareholder distributions that
increase leverage or weaken liquidity could also lead to a
downgrade.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
Gates Corporation, located in Denver, Colorado, is a leading global
manufacturer of power transmission belts, fluid power products and
critical components used in diverse industrial and automotive
applications. The company is a wholly-owned subsidiary of Gates
Industrial Corporation PLC (NYSE: GTES).
GATEWAY AT WYNWOOD: Seeks to Sell Miami Properties at Auction
-------------------------------------------------------------
The Gateway at Wynwood LLC and its affiliate, 2830 Wynwood
Properties LLC, seek permission from the U.S. Bankruptcy Court for
the Eastern District of New York, to sell real property located at
the Gateway at Wynwood, 2916 North Miami Avenue, Miami, Florida and
2830 North Miami Avenue, Miami, Florida, free and clear of liens,
interests, and encumbrances.
The Debtor's lead senior creditor, A10 Capital, LLC, in its
capacity as Servicer and Special Servicer, for and on behalf of
Wilmington Trust, National Association, solely in its capacity as
Trustee in trust for Holders of A10 Single Asset Commercial
Mortgage 2023-GTWY, Commercial Mortgage Pass-Through Certificates,
Series 2023-GTWY has received the total sum of $6,000,000 of excess
cash flow under the parties' cash collateral stipulations and
amendments.
The Debtors' aim to procure refinancing or a new investor group to
infuse capital so the existing mortgage debt could be potentially
restructured or paid based upon the Lender's consent, however, the
Debtors have not been successful in procuring a refinancing or a
new investor group despite concerted efforts.
The Gateway Debtor owns the Gateway Property, which is a valuable
mixed-use office development. The Gateway Property is fully built
and completed with a certificate of occupancy in place and consists
of approximately 450,000 total square feet located in Miami's
vibrant Wynwood district, including 195,000 square feet of Class A
commercial office space, plus associated retail space and multiple
floors of covered parking.
The 2830 Property, which adjoins the Gateway Property, is owned by
the 2830 Debtor, and consists of an 11,000 square foot lot
currently occupied by Chase Bank as the sole retail tenant under a
triple net lease.
The Properties are cross collateralized under a combined mortgage
held by the Lender, securing a series of Class A and B notes in the
total principal amount of approximately $109,689,798.
The primary obstacle facing the Gateway Property is that it is not
fully leased and requires approximately $10 million for leasing
commissions and tenant improvement work to attract additional
tenants and achieve full occupancy. Accordingly, before a
refinancing can proceed, the Debtors must obtain new capital of
approximately $10 million to pay for the necessary commissions and
build-outs. This has presented a challenge to any would-be investor
or buyer, and the Lender would likely face the same challenges.
The Debtors hope to market and sell the Properties in conjunction
with the Lender, which retains credit bid and consultation rights.
If the Debtors are unable to obtain the Lender's consent, however,
the Court may authorize such a sale process in any event.
The Debtors proposes the Bid Procedures to establish a fair auction
process, including benchmarks to become a qualified bidder. The
Debtors believe that the Bid Procedures promote a competitive and
fair sale process, and should be approved in the exercise of the
Debtors' business judgment.
Potential bidders planning to make a bid on one or more of the
shall deliver copies of its bid not later than May 22, 2025 at 5:00
p.m. (prevailing Eastern Time).
The auction will be held on May 29, 2025 at 3:00 p.m. (ET).
Prior to the commencement of the Auction, the Debtors will
determine the highest and otherwise best Qualified Bid submitted
for the Properties, which determination will be communicated to
Qualified Bidders prior to the commencement of the Auction.
If a Successful Bidder fails to consummate the Sale because of a
breach or failure to perform on the part of such bidder, then the
Debtors and their estates shall be entitled to retain the Good
Faith Deposit of such Successful Bidder.
About Gateway at Wynwood LLC
Gateway at Wynwood LLC owns a mixed-use office development project
in Miami, FL known as the Gateway at Wynwood located at 2916 North
Miami Avenue, Florida. The Project is fully built and completed
with a certificate of occupancy in place and consists of
approximately 450,000 total square feet, including 195,000 square
feet of Class A commercial office space, plus associated retail
space and multiple floors of covered parking.
Gateway at Wynwood LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Lead Case No. 24-72586) on July 1,
2024. In the petition signed by David Goldwasser, as chief
restructuring officer, the Debtor estimated assets and liabilities
between $100 million and $500 million. The Honorable Bankruptcy
Judge Louis A. Scarcella oversees the case.
GO LAB: Files Chapter 11, Has Interim Access to $10MM Financing
---------------------------------------------------------------
On March 25, 2025, GO Lab Inc. filed Chapter 11 protection in the
U.S. Bankruptcy Court for the District of Delaware. According to
court filing, the Debtor reports between $10 million to $50
million in debt owed to 1 and 49 creditors. The petition states
funds will not be available to unsecured creditors.
Emlyn Cameron of Law360 Bankruptcy Authority reports that the
Delaware bankruptcy judge approved wood fiber insulation maker GO
Lab Inc.'s interim access to a $10 million Chapter 11 financing
facility from existing bondholders as the company restructures its
balance sheet, granting those bondholders nearly all equity.
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.
GOLD MANAGEMENT: Case Summary & Eight Unsecured Creditors
---------------------------------------------------------
Debtor: Gold Management Realty LLC
164 Clymer Street
Brooklyn, NY 11211
Business Description: Gold Management Realty LLC is a single-asset
real estate debtor, as defined in 11 U.S.C.
Section 101(51B). The Debtor is the fee
owner of the property located at 169
Troutman Street, Brooklyn, New York 11222,
which is estimated to be worth $1.6 million.
Chapter 11 Petition Date: March 28, 2025
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 25-41519
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Joel M. Shafferman, Esq.
SHAFFERMAN & FELDMAN LLP
137 Fifth Avenue
9th Floor
New York, NY 10010
Tel: (212) 509-1802
E-mail: shaffermanjoel@gmail.com
Total Assets: $1,600,000
Total Liabilities: $24,843,362
The petition was signed by David Goldwasser as chief restructuring
officer.
A full-text copy of the petition, which includes a list of the
Debtor's eight unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/MNJKGVY/Gold_Management_Realty_LLC__nyebke-25-41519__0001.0.pdf?mcid=tGE4TAMA
GREENBRIER CO: Egan-Jones Retains BB- Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on March 19, 2025, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Greenbrier Companies, Inc. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Lake Oswego, Oregon, Greenbrier Companies, Inc.
supplies transportation equipment and services to the railroad and
related industries.
GREENWAVE TECHNOLOGY: Gets Nasdaq Extension to Regain Compliance
----------------------------------------------------------------
As previously reported by Greenwave Technology Solutions, Inc., on
September 13, 2024, the Company received written notice from The
Nasdaq Listing Qualification Department notifying the Company that
it was not in compliance with the $1.00 minimum bid price
requirement set forth in Nasdaq Listing Rule 5550(a)(2) for
continued listing on the Nasdaq Capital Market, as the closing bid
price of the Company's common stock had been below $1.00 per share
for 30 consecutive business days. The Notice indicated that the
Company has 180 calendar days, or until March 12, 2025, to regain
compliance with the Minimum Bid Price Requirement.
On March 13, 2025, Nasdaq notified the Company that although the
Company has not regained compliance with the Minimum Bid Price
Requirement, the Company is eligible to receive an additional 180
calendar day period or until September 8, 2025, to regain
compliance with the Minimum Bid Price Requirement, pursuant to
Nasdaq Listing Rule 5810(a)(3)(A).
Nasdaq's determination to grant the Company an additional 180
calendar day period was based on the Company's satisfaction of the
continued listing requirements for the market value of publicly
held shares and all other applicable requirements for initial
listing on the Nasdaq Capital Market, with the exception of the
Minimum Bid Price Requirement. Additionally, the Company has
provided Nasdaq with written notice of its intention to cure the
deficiency during the second compliance period, potentially by
implementing a reverse stock split, if necessary.
If, at any time during this additional compliance period, the
closing bid price of the Company's common stock is at least $1.00
per share for a minimum of 10 consecutive business days, Nasdaq
will provide written confirmation of compliance, and this matter
will be closed. If compliance cannot be demonstrated by September
8, 2025, Nasdaq will provide written notification that the
Company's securities will be delisted. At that time, the Company
may appeal Nasdaq's determination to a Nasdaq Hearings Panel.
The Company is currently monitoring the closing bid price of its
common stock and will consider available options, including a
reverse stock split, if appropriate, to regain compliance with the
Minimum Bid Price Requirement by September 8, 2025. There can be no
assurance that the Company will be able to regain compliance with
the Minimum Bid Price Requirement, even if it maintains compliance
with other listing requirements of the Nasdaq Capital Market.
About Greenwave
As an operator of 13 metal recycling facilities, Greenwave
Technology Solutions, Inc. (Nasdaq: GWAV) supplies leading steel
mills and industrial conglomerates with ferrous and non-ferrous
metal. With steel being one of the most recycled materials
worldwide, Greenwave supplies the raw metal utilized in critical
infrastructure projects and U.S. warships vital to American
national security interests. Headquartered in Chesapeake, VA, the
Company has 167 employees with metal recycling operations across
Virginia, North Carolina, and Ohio. For detailed financials and
updates, visit www.GWAV.com.
New York, NY-based RBSM LLP, the Company's auditor since 2017,
issued a "going concern" qualification in its report dated April
16, 2024. The report emphasizes that Greenwave has net loss, has
generated negative cash flows from operating activities, has an
accumulated deficit and has stated that substantial doubt exists
about Company's ability to continue as a going concern.
As of Sept. 30, 2024, Greenwave had $69.57 million in total assets,
$18.30 million in total liabilities, and $51.27 million in total
stockholders' equity.
GREENWICH INVESTMENT: Trustee Gets OK to Tap Cohen Dowd as Counsel
------------------------------------------------------------------
Michael Markham, the trustee appointed in the Chapter 11 case of
Greenwich Investment Management Inc., received approval from the
U.S. Bankruptcy Court for the Middle District of Florida to employ
Cohen Dowd Quigley PC as special counsel.
The trustee requires a special counsel to assist the Debtor in the
filing of the notice of appeal in the lawsuit entitled Greenwich
Investment Management, Inc. v. Aegis Capital Corp., et al.
The trustee seeks to immediately pay the firm $3,754.50 for its
time related to the appeal.
The firm can be reached through:
Cohen Dowd Quigley PC
2425 E. Camelback Rd., Ste. 1100
Phoenix, AZ 85016
Telephone: (602) 252-8400
About Greenwich Investment Management
Greenwich Investment Management, Inc. is a registered investment
advisor advising persons and institutions to allocate their savings
to financial assets. The Debtor sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-00721) on
May 21, 2024, with up to $50,000 in assets and up to $500,000 in
liabilities. During the bankruptcy case, the Debtor has had
approximately $250 million under management.
Judge Caryl E. Delano presides over the case.
The Debtor tapped Craig I. Kelley, Esq., at Kelley Kaplan & Eller,
PLLC as bankruptcy counsel and B. Lane Hasler, Esq., as special
counsel.
Michael C. Markham is the Subchapter V Trustee of the case, who was
authorized by the Court to operate the business of the Debtor and
has the standing to sell the assets. The trustee tapped Cohen Dowd
Quigley PC as special counsel.
HALO ESTATES: Court OKs Deal on Cash Collateral Access
------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
approved a stipulation between Halo Estates, LLC and its secured
creditor Wilmington Trust, National Association regarding the use
of cash collateral.
Under the stipulation, the parties agreed that the Debtor may use
cash collateral for a 90-day period, from April 1 to June 30, 2025,
in accordance with its budget.
As protection, Wilmington Trust was granted a replacement lien on
all post-petition cash collateral, to the same extent and with the
same validity and priority as its pre-bankruptcy lien.
The next hearing is set for July 1.
Wilmington Trust holds a first priority lien on the Debtor's
property and loan, secured by a mortgage and assignment of rents.
The Debtor failed to meet loan payments, maintain insurance, and
cure defaults since February 2024, leading to foreclosure
proceedings.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/TiZNh from PacerMonitor.com.
About Halo Estates LLC
Halo Estates LLC is a Los Angeles-based real estate company.
Halo Estates sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Calif. Case No. 25-10025) on January 7, 2025,
listing up to $50,000 in both assets and liabilities.
Judge Martin R. Barash handles the case.
The Debtor is represented by Alla Tenina. Esq.
HAYDALE CERAMIC: Taps Rountree Leitman Klein & Geer as Counsel
--------------------------------------------------------------
Haydale Ceramic Technologies, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to hire
Rountree, Leitman, Klein & Geer, LLC as attorneys.
The firm will provide these services:
a. giving the Debtor legal advice with respect to its powers
and duties as Debtor-in-Possession in the management of its
property;
b. preparing on behalf of the Debtor as Debtor-in-Possession
necessary schedules, applications, motions, answers, orders,
reports and other legal matters;
c. assisting in examination of the claims of creditors;
d. assisting with formulation and preparation of the
disclosure statement and plan of reorganization and with the
confirmation and consummation thereof; and
e. performing all other legal services for the Debtor as
Debtor-in-Possession that may be necessary.
The firm will be paid at these hourly rates:
William Rountree, Attorney $595
Will Geer, Attorney $595
Michael Bargar, Attorney $535
David Klein, Attorney $495
Hal Leitman, Attorney $425
William Matthews, Attorney $425
Ceci Christy, Attorney $425
Elizabeth Childers, Attorney $395
Caitlyn Powers, Attorney $375
Shawn Eisenberg, Attorney $300
Elizabeth Miller, Paralegal $290
Megan Winokur, Paralegal $175
Catherine Smith, Paralegal $150
Law Clerk $175
The firm received a post-petition retainer of $51,738.
Mr. Rountree 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:
Will B. Geer, Esq.
Rountree, Leitman, Klein & Geer, LLC
Century Plaza I
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Telephone: (404) 584-1238
Email: wgeer@rlkglaw.com
About Haydale Ceramic Technologies
Haydale Ceramic Technologies, LLC is a manufacturer of Silicon
Carbide (SiC) ceramic materials, boasting the largest installed
production capacity across the Americas, Europe, and the APAC
regions. Manufactured in Greer, South Carolina, the Company's
cutting tools are crafted using the highest quality SiC materials,
including particulates, fibers, and microfibers.
Haydale Ceramic Technologies filed Chapter 11 petition (Bankr. N.D.
Ga. Case No. 25-20159) on February 7, 2025, listing between $1
million and $10 million in assets and between $10 million and $50
million in liabilities.
Judge James R. Sacca handles the case.
The Debtor is represented by William Rountree, Esq. at Rountree,
Leitman, Klein & Geer, LLC.
HERITAGE HOTELS: Taps Weinstein Radcliff Pipkin as Special Counsel
------------------------------------------------------------------
Heritage Hotels Rockport, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Weinstein Radcliff Pipkin LLC as special litigation counsel.
The firm will provide these services:
(a) assist the Debtor in analyzing, prosecuting, etc. the
adversary proceeding styled Heritage Hotels Rockport LLC v. Jon K.
Takata Corporation d/b/a/ Restoration Management Company;
(b) prepare and file such pleadings as are necessary to pursue
the estate's claims;
(c) conduct appropriate examinations of witnesses, claimants
and other parties in interest in connection with such litigation;
(d) represent the Debtor in the adversary proceeding and other
proceedings before the court and in any other judicial or
administrative proceeding in which the claims described herein may
be affected;
(e) collect any judgment that may be entered in the
contemplated litigation;
(f) handle any appeals that may result from the contemplated
litigation; and
(g) perform any other legal services that may be appropriate
in connection with the prosecution of the litigation described
above.
The hourly rates of the firm's counsel and staff are as follows:
Gregory Weinstein, Esq. $575
Attorneys $230 - $500
Paralegals $175
Gregory Weinstein, Esq., an attorney at Weinstein Radcliff Pipkin,
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:
Gregory Weinstein, Esq.
Weinstein Radcliff Pipkin LLC
8350 N. Central Expy., Ste. 1550
Dallas, TX 75206
Telephone: (214) 865-6126
Facsimile: (214) 865-6140
Email: gweinstein@weinrad.com
About Heritage Hotels Rockport
Heritage Hotels is part of the traveler accommodation industry.
Heritage Hotels Rockport LLC in Marble Falls, TX, filed its
voluntary petition for Chapter 11 protection (Bankr. S.D. Tex. Case
No. 24-20201) on July 24, 2024, listing as much as $10 million to
$50 million in both assets and liabilities. James R. Reese,
manager, signed the petition.
The Debtor tapped the Law Office of Vincent Slusher as bankruptcy
counsel and Weinstein Radcliff Pipkin LLC as special litigation
counsel.
HERMS LUMBER: Seeks to Tap Marshack Hays Wood as General Counsel
----------------------------------------------------------------
Herms Lumber Sales, Inc. seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Marshack
Hays Wood LLP as general counsel.
The firm will provide these services:
(a) develop and draft a disclosure statement and Chapter 11
plan;
(b) negotiate with creditors to gain support for the plan;
(c) file motions and applications to protect the Debtor's
interests as necessary;
(d) assist in any possible liquidation of the Debtor's assets
and administer the bankruptcy estate;
(e) ensure compliance with the Bankruptcy Code, the Federal
Rules of Bankruptcy Procedure, and the Local Bankruptcy Rules;
(f) review and, if appropriate, object to creditor claims;
(g) represent the Debtor in any proceeding or hearing in the
Bankruptcy Court and in any action where its rights or the estate
may be litigated or affected; and
(h) perform any and all other legal services incident and
necessary for the smooth administration of this bankruptcy case.
The firm's counsel and staff will be paid at these hourly rates:
Richard Marshack, Partner $770
D. Edward Hays, Partner $770
David Wood, Partner $670
Aaron de Leest, Senior Counsel $670
Kristine Thagard, Of Counsel $670
Matthew Grimshaw, Of Counsel $670
Chad Haes, Of Counsel $670
Laila Rais, Partner $590
Alina Mamlyuk, Of Counsel $570
Tinho Mang, Associates $570
Bradford Barnhardt, Associates $470
Sarah Hasselberger, Associates $470
Devan de los Reyes, Associates $400
Pamela Kraus, Paralegal $380
Chanel Mendoza, Paralegal $380
Layla Buchanan, Paralegal $380
Cynthia Bastida, Paralegal $380
Sandra Pineda, Paralegal $380
Chantaal Arnold, Paralegal $350
In addition, the firm will seek reimbursement for expenses
incurred.
Pre-petition, the firm received a $95,000 retainer from the
Debtor.
Mr. De Leest 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:
Aaron E. De Leest, Esq.
Marshack Hays Wood LLP
870 Roosevelt
Irvine, CA 92620
Telephone: (949) 333-7777
Facsimile: (949) 333-7778
Email: adeleest@marshackhays.com
About Herms Lumber Sales Inc.
Herms Lumber Sales, Inc. specializes in the wholesale distribution
of lumber and related construction materials. The Company offers a
variety of products, including dense mixed hardwoods, softwoods,
and plywood/OSB, catering to industries such as pallet
manufacturing and construction.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10403) on February
19, 2025. In the petition signed by Mark C. Herms, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Theodor Albert oversees the case.
Aaron E. De Leest, Esq., at Marshack Hays Wood, LLP represents the
Debtor as legal counsel.
HIGH WIRE: Cancels $10-Mil. Equity Line of Credit to Avoid Dilution
-------------------------------------------------------------------
High Wire Networks, Inc. announced the cancellation of its $10
million Equity Line of Credit (ELOC). The ELOC was part of a recent
bridge financing package with a single investment fund.
As previously reported, on January 13, 2025, the Company entered
into a Purchase Agreement with the purchaser party thereto whereby
the Company had the right, but not the obligation, to sell to the
ELOC Purchaser, and the ELOC Purchaser was obligated to purchase,
up to an aggregate of $10 million of newly issued shares of the
Company's common stock, par value $0.00001 per share.
Mark Porter, President and CEO of High Wire Networks, stated, "As
we look at the needs of our business going forward and the timing
of all contemplated events, we feel that the ELOC is not in the
best interest of our shareholders, and we do not expect it would be
necessary from now on. After a short discussion, it was deemed
mutually beneficial to cancel the ELOC on good terms, as we are
mindful of dilution. Though it was part of the package, we did not
access the ELOC."
With the cancellation of the $10 million ELOC, High Wire Networks
continues to focus on maintaining a strong balance sheet and a
capital structure that supports its long-term growth objectives.
The company believes this decision will better position it to
execute its strategic initiatives without unnecessarily diluting
shareholder value.
"Looking forward, we are excited about the opportunities for High
Wire Networks to capitalize on the growing demand for managed
services and advanced technology solutions," said Porter. "Our team
remains dedicated to enhancing operational efficiencies, expanding
our service offerings, and fostering innovation as we continue to
build value for our shareholders."
About High Wire
High Wire Network, Inc., incorporated on Jan. 20, 2017, is a global
provider of managed cybersecurity, managed networks, and
tech-enabled professional services delivered exclusively through a
channel sales model. The Company's Overwatch managed security
platform-as-a-service offers organizations end-to-end protection
for networks, data, endpoints, and users via multiyear recurring
revenue contracts in this fast-growing technology segment. HWN has
continuously operated under the High Wire Networks brand for 23
years.
Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2014, issued a "going concern" qualification in its
report dated April 19, 2024, citing that the Company has incurred
losses since inception, has negative cash flows from operations,
and has negative working capital, which creates substantial doubt
about its ability to continue as a going concern.
High Wire Networks reported a net loss attributable to the
Company's common shareholders of $14.48 million for the year ended
Dec. 31, 2023, compared to a net loss attributable to the company's
shareholders of $19.04 million for the year ended Dec. 31, 2022. As
of March 31, 2024, the Company had $12.95 million in total assets,
$15.92 million in total liabilities, and a total stockholders'
deficit of $2.97 million.
HIGHRISE ELECTRICAL: Seeks Subchapter V Bankruptcy in Texas
-----------------------------------------------------------
On March 27, 2025, Highrise Electrical Technologies Inc. filed
Chapter 11 protection in the U.S. Bankruptcy Court for
the Southern District of Texas. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
About Highrise Electrical Technologies Inc.
Highrise 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.
Highrise Electrical Technologies Inc. sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.
Tex. Case No. 25-31634) on March 1, 2025. In its petition, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
The Debtor is represented by Annie Catmull, Esq. at
O'CONNORWECHSLER PLLC.
HMC PARTNERS: Seeks to Hire Larson & Zirzow as Bankruptcy Counsel
-----------------------------------------------------------------
HMC Partners LLC seeks approval from the U.S. Bankruptcy Court for
the District of Nevada to hire Larson & Zirzow, LLC as its
bankruptcy counsel.
The firm's services include:
(a) prepare on behalf of the Debtor all necessary or
appropriate legal papers in connection with the administration of
its bankruptcy estate;
(b) take all necessary or appropriate actions in connection
with a plan of reorganization and all related documents, and such
further actions as may be required in connection with the
administration of the Debtor's estate;
(c) take all necessary actions to protect and preserve the
Debtor's estate; and
(d) perform all other necessary legal services in connection
with the prosecution of the Chapter 11 case.
The firm will be paid at these rates:
Zach Larson, Principal $650 per hour
Matthew C. Zirzow, Principal $650 per hour
Benjamin Chambliss, Associate $500 per hour
Patricia Huelsman, Paralegal $295 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-petition retainer in the amount of
$35,000.
Mr. Zirzow disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Matthew C. Zirzow, Esq.
Larson & Zirzow, LLC
850 E. Bonneville Ave.
Las Vegas, NV 89101
Tel: (702) 382-1170
Fax: (702) 382-1169
Email: mzirzow@lzlawnv.com
About HMC Partners LLC
HMC Partners LLC is a Las Vegas-based financial advisory firm.
HMC Partners LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 25-11148) on February 28,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Natalie M. Cox handles the case.
The Debtor is represented by Matthew C. Zirzow, Esq. at LARSON &
ZIRZOW, LLC.
HUDSON'S BAY: Union, CLC Slam Bonuses as Workers Denied Severance
-----------------------------------------------------------------
Canadian Labour Congress issued a statement that Hudson's Bay's
financial crisis cannot and must not come at the expense of its
workers. With more than 9,300 jobs on the line, it is unacceptable
that HBC is choosing to funnel up to $3 million in bonuses to
executives and managers while denying severance to the very workers
who built the company.
"Canada's unions stand in full solidarity with HBC workers and
demand that the company reverse course immediately. This is not
restructuring, it's a betrayal. No executive should be pocketing
bonuses while workers are left without a safety net.
HBC must honour its responsibilities to its workers, including
wages, benefits, and severance. These are not optional.
This situation is yet another example of why Canada's unions have
long advocated for changes to federal laws like the Bankruptcy and
Insolvency Act and the Pension Benefits Standards Act. For decades,
we have fought to protect workers and ensure that they are not left
at the back of the line when companies go bankrupt, forcing them to
wait behind lenders, suppliers, and tax collectors for the wages,
severance, and pensions they are entitled to. In 2023, following
years of advocacy, the federal government successfully passed the
Pension Protection Act, a crucial step forward. However, these
vital protections will not come into effect until April 27, 2027.
We also call on the federal government to ensure that no worker
falls through the cracks and that programs like the Wage Earner
Protection Program are accessible without delay, and that no
Employment Insurance benefits are clawed back in this process.
Make no mistake: thousands of workers at Hudson's Bay are facing
economic uncertainty thanks to corporate greed and government
weakness. Every leader in this election must be asked what they
will do to strengthen protections for workers and their
livelihoods. Workers deserve respect, security, and the dignity of
knowing they won't be abandoned in a difficult economy.
Canada's unions are watching closely. Hudson's Bay must act with
integrity. It's time to put people before profit.
Unifor also denounced Hudson's Bay Company awarding management
bonuses while thousands of workers face termination and learn that
the company has publicly refused to honour its severance pay
obligations.
It's disgraceful, enraging, and outrageous. This is corporate greed
at its worst and shows how fundamentally unfair this process is for
the very workers who kept this company going," says Unifor National
President Lana Payne. "No manager or executive should see a bonus
while severance and other legal obligations to workers remain
unpaid. We're going to fight for justice for our members."
Layoffs have already begun and will continue through June. As
unsecured creditors under CCAA and bankruptcy rules, HBC employees
are last in line to receive compensation. The union will pursue all
avenues to hold HBC to its contractual and financial obligations to
Unifor members."
"The system doesn't work for workers. Government programs, like the
Wage Earner Protection Program, are inadequate and fail to meet the
urgent needs of workers facing layoff," continued Payne. "For many
long-service members, this amount falls far short of what they are
owed with the potential of months-long delays before they receive a
penny."
Under Unifor's collective agreements with HBC, some members are
entitled to upwards of $35,000 in severance, depending on wages,
seniority, and other factors like commissions.
Unifor is urging all levels of government to take legislative
action that ensures workers are not treated as afterthoughts in
corporate financial dissolutions.
Unifor's understanding is that the pension plan is currently in
surplus position, which is positive news for members at this
difficult time. Unifor will be advocating for members to receive
their fair share of any surplus in the pension plan.
Unifor continues to call for urgent reforms to federal insolvency
laws to better protect workers, including raising the WEPP cap,
expanding super-priority protections, imposing liability on
directors for unpaid compensation, and creating a mechanism to
ensure workers are made whole through trust-held funds or federal
guarantees
Unifor Locals 40 and 240 represent approximately 595 HBC employees
at stores in Windsor, Kitchener, and Toronto's Sherway Gardens, as
well as workers at the company's e-commerce warehouse.
Unifor is Canada's largest union in the private sector,
representing 320,000 workers in every major area of the economy.
The union advocates for all working people and their rights, fights
for equality and social justice in Canada and abroad, and strives
to create progressive change for a better future.
About Hudson's Bay Company ULC
Hudson's Bay Company ULC is a Canadian entity that includes the
retail company Hudson's Bay, comprising 80 stores and TheBay.com.
Through a licensing agreement, 3 Saks Fifth Avenue and 13 Saks OFF
5TH stores also operate in Canada under Hudson's Bay Company ULC.
Court filings as well as other information related to Hudson's Bay
Company's CCAA proceedings will be available on the Monitor's
website at www.alvarezandmarsal.com/HudsonsBay. Information
regarding the CCAA process may also be obtained by calling the
Monitor's hotline at (416) 847-5157 (toll free), or by email at
hudsonsbay@alvarezandmarsal.com. Hudson's Bay will continue to
provide updates regarding the CCAA proceedings as developments or
circumstances may warrant.
HURON UNIVERSITY: DBRS Cuts Issuer Rating to BB(high)
-----------------------------------------------------
DBRS Limited downgraded the Issuer Rating of Huron University
College (Huron or the University) and the credit rating on the
University's Senior Unsecured Debentures to BB (high) from BBB
(low). The trends on both credit ratings are Negative.
KEY CREDIT RATING CONSIDERATIONS
The ratings are supported by Huron's position as an elite,
primarily undergraduate, liberal arts institution with strong
demand for its niche programs and the profile and operational
benefits of its affiliation with a larger, well-recognized
university, Western University (not rated by Morningstar DBRS).
However, its historically weak operating performance, lack of
internal liquidity, and elevated debt levels constrain the rating.
The credit rating downgrades reflect Huron's failure to demonstrate
an improvement in operating performance in line with previous
expectations, increased debt, and near-term refinancing risk.
Despite rising enrolment and strong demand from domestic students,
along with the opening of a new student residence that is
contributing positively to operations, the University's fiscal
recovery has been further delayed. Declining international
enrolment is contributing to lower-than-planned revenues and
fundraising efforts have not materialized as quickly as
anticipated, although recently announced donations should start to
contribute positively to operations over the medium term. In
addition, total debt has increased above Morningstar DBRS' previous
expectations because of Huron's reliance on its bank credit
facility to fund operating shortfalls and lack of internal
liquidity.
CREDIT RATING DRIVERS
A negative rating action could be taken if the University faces
reduced access to external liquidity, fails to demonstrate an
improvement in financial risk metrics (particularly interest
coverage and deficit reduction), or continues to increase its
reliance on bank credit facilities to fund operating shortfalls. A
positive rating action is highly unlikely in the near term, but
Morningstar DBRS could change the trend to Stable from Negative if
Huron achieves a sustained improvement in key financial risk
assessment metrics and the successful rollover of maturing debt.
CREDIT RATING RATIONALE
The University budgeted for a deficit of $5.6 million in 2024-25.
However, based on the third-quarter update, performance is again
tracking notably behind plan with a deficit of $10.9 million now
anticipated. While tuition revenues are running close to target,
most other revenue categories are weaker than expected, leaving
total revenues 9.6% behind plan. Donations and transfers from the
endowment account for much of the shortfall being under budget by
$5.1 million.
Huron's medium-term forecast points to a gradual improvement in
operating results although a return to surplus has been delayed by
two years to 2028-29. This remains dependent on a turnaround in
international enrolment while keeping expenditure growth relatively
contained. While Morningstar DBRS acknowledges the strong demand
for Huron's programs among domestic students (see "Ontario
Universities: Rising Domestic Applications Provide Little Relief to
Universities Facing Financial Challenges," published January 29,
2025), domestic tuition fees are much lower than international
tuition fees and, because Huron is well ahead of its funded
corridor with the Province of Ontario (rated AA with a Stable
trend), growth in domestic enrolment does not increase government
operating grants.
Management is optimistic that fundraising efforts will lead to
increased investment income and transfers from the endowment, and
the University continues to evaluate other potential revenue
enhancement opportunities. Nevertheless, the budgetary outlook
remains strained and leaves little flexibility to weather any
unforeseen shocks. Morningstar DBRS will closely monitor for signs
that the University is able to maintain a path to financial
sustainability.
Notes: All figures are in Canadian dollars unless otherwise noted.
HUTCHINSON REGIONAL: Moody's Revises Outlook to Stable
------------------------------------------------------
Moody's Ratings has revised Hutchinson Regional Medical Center,
Inc.'s (KS) (HRMC) outlook to stable from negative and affirmed the
Ba2 revenue bond rating. HRMC had $38 million of total debt at
fiscal year-end 2024.
The outlook revision to stable reflects improving financial
performance, with break-even to slightly positive cash flow
expected in fiscal 2025 and run rate of further improvement
thereafter.
RATINGS RATIONALE
The Ba2 rating reflects HRMC's leading market position (85% share),
strong liquidity, and moderate leverage. These strengths are
tempered by its modest scale and weak demographics in its core
service area, which limit revenue growth and competition for
outpatient volumes from a nearby multi-specialty physician group.
Management aims to improve performance, anticipating break-even to
slightly positive operating cash flow in 2025, driven by operating
efficiencies and potential reimbursement enhancements. After
securing a forbearance agreement for FY's 2023 and 2024, HRMC
expects to meet its debt service coverage covenant of 1.20 times in
fiscal 2025. Additionally, robust cash to debt of 4-5x remains
favorable.
RATING OUTLOOK
The stable outlook reflects improving operating performance, with
break-even to slightly positive cash flow anticipated in fiscal
2025 and an operating cash flow margin of 2%-3% in fiscal 2026.
Additionally, days cash on hand will remain robust, providing a
cushion for operational improvement initiatives to gain traction.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
-- Significant and sustained improvement in financial
performance, with operating cash flow margins returning to levels
that would sustainably fund operations, debt service and capital
spending
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
-- Inability to maintain performance improvement traction and
generate a positive operating cash flow margin in the 2-3% range
for fiscal 2026
-- Material decline in days cash on hand below 200 days or
additional financial leverage that dilutes metrics
LEGAL SECURITY
The bonds are secured by a pledge of gross revenues and a mortgage
upon certain hospital facilities granted as a condition of the
recent forbearance agreement. Additional indebtedness is permitted
under certain conditions.
PROFILE
Hutchinson Regional Health System is a 501 (c)(3), which includes
Hutchinson Regional Medical Center, Inc., a 190-licensed bed
hospital located in Hutchinson, Kansas. The hospital offers an
array of healthcare services, including Level 3 Trauma, cardiology
services, oncology and cancer services, labor and delivery, wound
care, and sleep services.
METHODOLOGY
The principal methodology used in this rating was Not-for-profit
Healthcare published in October 2024.
IFR FOUNDATION: Gets Final OK to Use Cash Collateral
----------------------------------------------------
IFR Foundation Repair, Inc. received final approval from the U.S.
Bankruptcy Court for the Northern District of Texas, Fort Worth
Division, to use cash collateral.
The final order authorized the company to use cash collateral to
pay the expenses set forth in its budget, with a 10% variance
allowed.
IFR projects total monthly expenses of $55,102.26.
As protection, Pinnacle Bank was granted replacement liens on
post-petition accounts receivable and their proceeds to protect
against any loss in the value of its collateral.
The replacement liens are subject to a carve-out for fees payable
to the Subchapter V trustee in the amount of $1,000 per month; and
fees and expenses of professionals retained by the company to the
extent approved by the court.
About IFR Foundation Repair Inc.
IFR Foundation Repair Inc. engages in the business of concrete slab
stabilization, pier and beam repair and adjustment, drainage
correction, and retaining wall repair in the DFW area. It was
founded in 2007 and has been continually operated by its president
and chief executive officer Jeff Marshall.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40111-elm11) on
January 10, 2025. In the petition signed by Marshall, the Debtor
disclosed up to $500,000 in both assets and liabilities.
Judge Edward L. Morris oversees the case.
The Debtor is represented by:
Warren V. Norred, Esq.
Norred Law PLLC
Tel: 817-704-3984
Email: warren@norredlaw.com
ILPEA PARENT: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable
-------------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' ratings on U.S.-based magnetic
gaskets manufacturer Ilpea Parent Inc. and its senior secured debt.
The recovery rating of '3' is unchanged but S&P now estimates
recovery prospects at 50%, down from 60% previously, due to higher
local debt at subsidiaries.
The stable outlook reflects our expectation that Ilpea will
continue to exhibit good operating performance and control cost,
and maintain its EBITDA margin at about 15%, leading to S&P Global
Ratings-adjusted debt to EBITDA of below 4.5x, free operating cash
flow (FOCF) to debt trending toward 5%, and robust cash interest
coverage and liquidity.
Ilpea Parent Inc's operational performance in 2024 (fiscal year
ending Oct. 31) was somewhat weaker than we anticipated. This
mainly reflected challenging market conditions in the appliance
business (53% of revenues) and persistent wage inflation, resulting
in its S&P Global Ratings-adjusted EBITDA margin deteriorating to
about 14.8% in 2024 (16.7% in 2023).
S&P's revised base case is that its revenues and S&P Global
Ratings-adjusted EBITDA margin will remain at around 2024 levels,
mainly thanks to new business opportunities and efficiency gains
from recent automation investments--compensating for an uncertain
market landscape.
During fiscal 2024 the company reduced its absolute reported debt
by EUR20 million to EUR224 million, thanks to voluntary term loan B
(TLB) prepayments. Despite this, its S&P Global Ratings-adjusted
leverage slightly increased to 4.1x (3.9x at year-end 2023) because
of lower EBITDA generation. For 2025 and 2026, S&P forecasts debt
to EBITDA at 4.0x-4.2x, supported by steadier profitability and
stable debt.
S&P said, "After a deterioration in profitability in 2024, steady
margins should enable Ilpea to keep its S&P Global Ratings leverage
below 4.5x in 2025-2026, in our view. Ilpea's S&P Global
Ratings-adjusted gross debt decreased by EUR23 million, to EUR293
million at the end of fiscal 2024, primarily after making voluntary
debt prepayments on its $225 million TLB. Despite this, its S&P
Global Ratings-adjusted debt to EBITDA deteriorated slightly to
4.1x in 2024, from 3.9x at year-end 2023. The modest increase in
leverage can be attributed entirely to lower profitability, with
its S&P Global Ratings-adjusted EBITDA margin falling to 14.8%,
from 16.7% in 2023, about 100 basis points (bps) below our previous
expectations. The decline was driven by persistent wage inflation
and a negative product mix effect. Appliance revenues (53% of
fiscal 2024 sales), net of exchange rate effects, declined by 6.8%
because of lower volumes and price reductions. This segment
typically sees higher margins than the automotive (37% of revenues)
and building products segments (10%). For fiscal 2025, we now
expect Ilpea's S&P Global Ratings-adjusted EBITDA margin will
stabilize at around 15% because ongoing cost inflation will likely
be offset by efficiency gains from recent investments in automation
and new equipment. As a result, and considering relatively stable
adjusted debt, we forecast S&P Global Ratings-adjusted debt to
EBITDA to remain below 4.5x over the next two years, a level we
view as commensurate with the current 'B+' rating.
"We anticipate Ilpea will manage persistent challenging market
conditions, and uncertainties arising from potential tariffs,
thanks to new business. The risk of U.S. tariffs, along with
potential retaliatory measures from trade partners, could reignite
inflation and dampen demand for high-ticket consumer durables like
appliances. Similarly, we expect automotive suppliers in EMEA will
face challenges arising from subdued light vehicle production and
the slow and volatile adoption of battery electric vehicles, among
others."
Ilpea's new business opportunities should help mitigate this
still-difficult landscape. This should result in broadly stable
revenues in the appliance segment, and a modest 1%-2% decline in
the automotive segment. For the building products business, the
momentum behind the 29% year-on-year revenue increase in fiscal
2024 should continue into 2025, driven by the roll-out of recently
developed products and the capacity investments made last year. The
direct impact of U.S. tariffs on Ilpea's operations is likely to be
limited given its primarily local-for-local business model.
However, potential indirect effects could weigh on operations in
Mexico, which accounted for about 13% of revenues in 2024. S&P
said, "As a result, our baseline forecasts carry a degree of
uncertainty. Overall, we forecast revenues to remain stable at
about EUR480 million in 2025, more-or-less unchanged from 2024.
This compares with a 0.7% decline in revenues in 2024 (+1.4% year
on year net of forex effect)."
S&P said, "We expect FOCF to debt to remain subdued in 2025 at
around 3% but improving toward 5% in 2026. Reported cash flow from
operations improved slightly in 2024, to about EUR27.7 million,
from EUR25.5 million in fiscal 2023, primarily due to neutral
working capital compared to an outflow of around EUR9.0 million in
2023. However, higher-than-expected capital expenditure (capex)
reaching 5.5% of sales (4.5% in 2024) mainly intended for
automating business lines and upgrading equipment led to a decrease
in S&P Global Ratings-adjusted FOCF to about EUR11.6 million, from
EUR16.5 million in 2023. We anticipate that FOCF generation will
remain subdued this year at EUR7 million-EUR10 million due to
limited growth and slightly higher working capital needs as the
uncertain market environment may lead to logistical challenges and
increased raw material costs. However, we expect FOCF to improve in
fiscal 2026 mainly thanks to anticipated business expansion.
"The stable outlook reflects our expectation that Ilpea will
continue to exhibit good operating performance and control costs,
and maintain EBITDA margins at around 15%, in a less supportive
market. We adjusted debt to EBITDA will stay below 4.5x and FOCF to
debt will trend toward 5%, with robust cash interest coverage and
liquidity.
"We could lower our rating if weak operating performance leads to
S&P Global Ratings-adjusted debt to EBITDA approaching 5.0x, or if
FOCF turns negative.
"We regard the possibility of an upgrade as remote. A positive
rating action would hinge on Ilpea expanding its product offering,
decreasing its reliance on key clients, and diversifying into other
end-markets while keeping S&P Global Ratings-adjusted EBITDA
margins sustainably above 16%, even at the bottom of the cycle. In
addition, we could revise our outlook to positive if the company's
leverage sustainably improves to below 3.5x and FOCF to debt
increases to above 10%."
IM3NY LLC: Seeks Approval to Hire Ordinary Course Professionals
---------------------------------------------------------------
iM3NY, LLC and Imperium3 New York, Inc. seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ
professionals in the ordinary course of business.
The Debtors need ordinary course professionals to perform services
for matters unrelated to these Chapter 11 cases.
The Debtors seek to pay OCPs 100 percent of fees and expenses
incurred.
The Debtors do not believe that any of the OCPs have an interest
materially adverse to them, their estates, creditors, or other
parties in interest in connection with the matter upon which they
are to be engaged.
About iM3NY LLC
IM3NY LLC -- https://im3ny.com/ -- is an independent lithium-ion
cell manufacturer that is commercializing cell chemistry developed
in the USA.
iM3NY LLC and Imperium3 New York, Inc. sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
25-10131) on January 27, 2025. In the petition, the Debtors
reported estimated assets between $50 million and $100 million and
estimated liabilities between $100 million and $500 million.
The Honorable Bankruptcy Brendan Linehan Shannon handles the
cases.
The Debtors tapped William E. Chipman, Jr., Esq., at Chipman Brown
Cicero & Cole, LLP as counsel; Novo Advisors as financial advisor;
and Hilco Corporate Finance, LLC as investment banker. Stretto,
Inc. is the Debtors' noticing claims management and reconciliation
consultant.
INFINERA CORP: Tudor Investment Disposes of Equity Stake
--------------------------------------------------------
Tudor Investment Corporation and Paul T. Jones II disclosed in a
Amendment No. 1 of a Schedule 13G filing with the U.S. Securities
and Exchange Commission that as of February 28, 2025, they
beneficially own zero shares of Infinera Corp.'s common stock.
About Infinera Corp.
Headquartered in Sunnyvale, Calif., Infinera Corp. --
www.infinera.com -- is a semiconductor manufacturer and global
supplier of networking solutions comprised of networking
equipment,
optical semiconductors, software and services. The Company's
portfolio of solutions includes optical transport platforms,
converged packet-optical transport platforms, compact modular
platforms, optical line systems, coherent optical engines and
subsystems, a suite of automation software offerings, and support
and professional services. Leveraging its U.S.-based compound
semiconductor fabrication plant and in-house test and packaging
capabilities, the Company designs, develops and manufactures
indium
phosphide-based photonic integrated circuits for use in its
vertically integrated, high-capacity optical communications
products.
As of December 28, 2024, the Company had $1.5 billion in total
assets, $1.4 billion in total liabilities, and $116.5 in total
stockholders' equity.
* * *
Egan-Jones Ratings Company, on September 18, 2024, maintained its
'CC' foreign currency and local currency senior unsecured ratings
on debt issued by Infinera Corporation.
INKWELL PRODUCTIONS: Continued Operations to Fund Plan Payments
---------------------------------------------------------------
The Inkwell Productions, Inc., filed with the U.S. Bankruptcy Court
for the Middle District of Florida a Plan of Reorganization dated
March 5, 2025.
The Debtor, a corporation formed in 2018, is engaged in producing
and promoting nightlife events. The Debtor currently produces and
promotes events at 621 W 46th Street, New York, NY 10013 (the
"Venue"). The space is rented pursuant to an unwritten verbal
agreement, not owned. Kevin Woodley is the Debtor's principal and
is the individual responsible for its day-to-day operations.
Prior to filing, the Debtor faced financial challenges due to
uncertainty and prejudice in the civil action styled Robert McNeil
v. Shawnique Woodley, Kevin Woodley, The Inkwell Hospitality Group
and Theatrical Wardrobe Inion IATSE 764, The Inkwell Hospitality
Group, and ABC Corporations 1-10, et. al, filed in the Superior
Court of New Jersey, Law Division: Bergen County, Docket No. BER
L04843-20 (the "NJ Action"). Shortly before the Petition Date,
Robert McNeil, who never had any relationship with the Debtor,
expanded the relief sought in the NJ Action.
The potential litigation expense as well as the risk of an adverse
ruling made it difficult for the Debtor to continue its operations
with any certainty in its future and its future cash flow needed to
meet its obligations to creditors. The Chapter 11 filing aims to
preserve the business as a going concern, maximize value for
creditors, and restructure obligations to ensure long-term
viability.
At present, the Debtor is intent on keeping the business operating
and the going concern value of the Business can be maintained by
doing so. The Debtor rents the Venue under an unwritten verbal
agreement to promote its events. The Debtor has been actively
seeking a venue in Tampa to promote events, but has been
unsuccessful in these endeavors. The Debtor intends to continue
seeking a venue in Tampa to promote events, but at present, its
operations will continue at the Venue.
The payments under this Plan will be funded from income from
operations and, if necessary, from borrowed or newly invested
funds. A projection of income and expenses assumes that the Debtor
will continue to operate its business at the Venue and that Mr.
Woodley, whom the business would have little to no value without,
will remain the equity owner of the business and continue to manage
its operations.
Class 2 consists of all Allowed General Unsecured Claims against
the Debtor. This includes the claims scheduled by the Debtor for
AGL, Chase, Citicard, and Simple Text and the claims filed by
American Express National Bank and the U.S. Small Business
Administration. Holders of Allowed Class 2 Claims shall receive pro
rata distributions from the following sources: net operating
proceeds from the operation of the Debtor's business over the term
of the Plan (after Administrative Claims are paid in full). Class 2
is Impaired.
Class 3 consists of all equitable interests in the Debtor. All
equity interests will be retained by the Debtor's equity security
holders upon confirmation. This Plan does not anticipate any
distributions to Equity Interests. Class 3 is impaired.
The Plan contemplates that the Debtor will continue to manage and
operate its business in the ordinary course. It is anticipated that
the revenue from the operation of the Debtor's business will
provide the greatest benefit to the bankruptcy estate. It is
anticipated the Debtor's postconfirmation business will mainly
involve continued operation of its business. Disposable income from
such operations in the amount of $700.00 per month will be
committed to make the Plan Payments, for a total amount of
$16,800.00 to be paid over the course of the Plan.
Funds generated from operations through the Effective Date will be
used for Plan Payments; however, the Debtor's cash on hand as of
Confirmation will be available for payment of Administrative
Expenses.
A full-text copy of the Plan of Reorganization dated March 5, 2025
is available at https://urlcurt.com/u?l=oT5xDq from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Townsend Belt, Esq.
Stephenie Biernacki Anthony, Esq.
Julia G. Traina, Esq.
Anthony & Partners, LLC
100 South Ashley Drive, Suite 1600
Tampa, FL 33602
Telephone: (813) 273-5616
Email: tbelt@anthonyandpartners.com
About The Inkwell Productions
The Inkwell Productions, Inc. is engaged in producing and promoting
nightlife events (the "Business").
The Debtor filed a Chapter 11 petition (Bankr. M.D. Fla. Case No.
24-07199) on December 5, 2024, listing under $1 million in both
assets and liabilities.
The Debtor tapped Anthony & Partners, LLC, as counsel and Schwack,
Garbutt, & Associates, CPA's LLC as accountant.
INNOVEREN SCIENTIFIC: H. Schuyler, P. Farrell Hold 7.7% Equity
--------------------------------------------------------------
Hansen Schuyler and Patrick F. Farrell disclosed in a Schedule 13G
filing with the U.S. Securities and Exchange Commission that as of
December 13, 2024, they beneficially own 697,268 shares of
Innoveren Scientific Inc.'s common stock, representing 7.7% of the
Company's outstanding shares of stock.
About Innoveren Scientific
Innoveren Scientific Inc. (formerly H-CYTE Inc.) --
http://www.InnoverenScientific.com-- is a life science and
biotech
incubator company, focused on advancing new technologies in areas
of unmet need across multiple indications, with the ultimate goal
of improving patient lives. The company invests in and fosters
innovative technologies that are supported by a strong scientific
foundation, which have relatively short timelines and low costs to
achieve meaningful value inflection points.
Tampa, Florida-based Frazier & Deeter, LLC, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated May 10, 2023, citing that the Company has negative working
capital, has an accumulated deficit, has a history of significant
operating losses, and has a history of negative operating cash
flow
that raise substantial doubt about its ability to continue as a
going concern.
The Company has not filed its Annual Report on Form 10-K for the
period ended Dec. 31, 2023, and its Quarterly Report on Form 10-Q
for the period ended June 30, 2024.
INOTIV INC: Registers 2.25MM Additional Shares Under Incentive Plan
-------------------------------------------------------------------
Pursuant to General Instruction E of Form S-8, Inotiv, Inc. filed a
Registration Statement on Form S-8 with the U.S. Securities and
Exchange Commission to register an additional 2,250,000 common
shares, no par value per share, of the Company reserved for
issuance under the Company's 2024 Equity Incentive Plan, as amended
March 13, 2025.
Shares of the Company's Common Shares issuable under the Plan were
previously registered pursuant to a Registration Statement on Form
S-8 (No. 333-279732) filed with the Securities and Exchange
Commission on May 24, 2024.
A full-text copy of the Registration Statement is available at:
https://tinyurl.com/m3vst5s8
About Inotiv
West Lafayette, Ind.-based Inotiv, Inc. and its subsidiaries
comprise a leading contract research organization dedicated to
providing nonclinical and analytical drug discovery and development
services to the pharmaceutical and medical device industries and
selling a range of research-quality animals and diets to the same
industries as well as academia and government clients.
Indianapolis, Ind.-based Ernst & Young LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated December 4, 2024, citing that the Company has suffered
negative operating cash flows, operating losses and net losses,
absent recent amendments would not have complied with certain
covenants of loan agreements with banks and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
As of December 31, 2024, Inotiv had $772.9 million in total assets,
$603.1 million in total liabilities, and $169.8 million in total
equity.
INOTIV INC: Shareholders OK All Proposals at Annual Meeting
-----------------------------------------------------------
Inotiv, Inc. held its annual meeting of shareholders during which a
total of 22,140,323 shares of the Company's common shares
outstanding and entitled to vote were present at the meeting in
person or by proxy. During the annual meeting:
(a) Class I members R. Matthew Neff and Robert W. Leasure, Jr.
were elected to serve a three-year term until the 2028 annual
meeting of shareholders.
(b) The appointment of Ernst & Young LLP as the Company's
independent registered public accounting firm for fiscal 2025 was
ratified.
(c) The proposal to approve, on an advisory basis, the
compensation of the Company's named executive officers as described
in the Proxy Statement was approved.
(d) The advisory vote on the frequency of future advisory
votes on the compensation of the Company's named executive officers
received the most votes cast for the option of every three years.
In light of the shareholders' advisory vote in favor of "Three
Years" with respect to this proposal, the Company has determined to
hold the advisory vote on the compensation of its named executive
officers every three years, until the next advisory vote on the
frequency of future advisory votes on executive compensation.
(e) The amendment to the Inotiv, Inc. 2024 Equity Incentive
Plan to increase the number of shares available for issuance under
the plan by an additional 2,250,000 shares was approved. The 2024
Plan Amendment was approved by the Company's Board of Directors on
January 15, 2025, subject to shareholder approval, and became
effective with such shareholder approval on March 13, 2025.
About Inotiv
West Lafayette, Ind.-based Inotiv, Inc. and its subsidiaries
comprise a leading contract research organization dedicated to
providing nonclinical and analytical drug discovery and development
services to the pharmaceutical and medical device industries and
selling a range of research-quality animals and diets to the same
industries as well as academia and government clients.
Indianapolis, Ind.-based Ernst & Young LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated December 4, 2024, citing that the Company has suffered
negative operating cash flows, operating losses and net losses,
absent recent amendments would not have complied with certain
covenants of loan agreements with banks and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
As of December 31, 2024, Inotiv had $772.9 million in total assets,
$603.1 million in total liabilities, and $169.8 million in total
equity.
INTEGRATED CARE: Seeks to Hire Cunningham Law as Special Counsel
----------------------------------------------------------------
Integrated Care of Greater Hickory, Inc. seeks approval from the
U.S. Bankruptcy Court for the Eastern District of North Carolina to
employ Cunningham Law, PLLC as special counsel.
The Debtor requires a special counsel to represent its interest in
the Wake County Civil Superior Court Case entitled Integrated Care
of Greater Hickory, Inc. v. Appalachian Recovery Concepts, LLC, et
al., Case No. 24-CV032756-910.
The firm was owed $1,006.25 as of the petition date for legal
services related to the Appalachian Recovery Lawsuit.
All post-petition fees, compensation and reimbursement for expenses
to the firm will be determined after application and approval by
the court.
James Cunningham, Esq., an attorney at Cunningham Law, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
James C. Cunningham III, Esq.
Cunningham Law PLLC
434 Fayetteville Street, Suite 2330
Raleigh, NC 27601
Telephone: (919) 295-2270
Email: Cal@CalCunninghamNC.com
About Integrated Care of Greater Hickory
Integrated Care of Greater Hickory Inc. is a healthcare
organization in North Carolina, which provides comprehensive
support for adults, children, adolescents, and their families
facing various behavioral health challenges, such as addiction,
depression, anxiety, trauma, and more. The organization's primary
goal is to promote lifelong recovery through a range of
interventions, rather than just offering treatment. Additionally,
ICGH provides Peer Support Services, which are led by Certified
Peer Support Specialists -- individuals with personal,
transformative experiences who assist others struggling with mental
health issues, trauma, or substance use.
Integrated Care of Greater Hickory filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. E.D.N.C. Case No.
25-00629) on February 21, 2025, listing between $500,000 and $1
million in assets and between $1 million and $10 million in
liabilities.
The Debtor tapped the Law Offices of Oliver & Cheek, PLLC as
bankruptcy counsel and Cunningham Law, PLLC as special counsel.
INTELLIGENT PROTECTION: Reports $8.4MM Net Loss in 2024
-------------------------------------------------------
Intelligent Protection Management Corp. (f/k/a Paltalk, Inc.) filed
a Form 10-K with the U.S. Securities and Exchange Commission
reporting a net loss of $8,426,209 over revenue of $1,098,280 for
the year ended December 31, 2024, compared to a net loss of
$1,067,335 over revenue of $962,032 for the year ended December 31,
2023.
The Company also reported $15,872,530 in total assets, $3,972,868
in total liabilities, and $11,899,662 in total stockholders' equity
at December 31, 2024.
On January 2, 2025, the Company completed the acquisition of Newtek
Technology Solutions, Inc., a New York corporation, pursuant to
that certain Agreement and Plan of Merger, by and among the
Company, PALT Merger Sub 1, Inc., a New York corporation and a
direct and wholly owned subsidiary of the Company, PALT Merger Sub
2, LLC, a Delaware limited liability company and a direct and
wholly owned subsidiary of the Company, NTS and NewtekOne, Inc., a
Maryland corporation and the sole stockholder of NTS.
Pursuant to the terms of the Acquisition Agreement, on the Closing
Date: (i) NTS merged with and into First Merger Sub, with NTS
continuing as the surviving entity and (ii) immediately following
the consummation of the First Step Merger, the Interim Surviving
Entity merged with and into Second Merger Sub, with the Second
Merger Sub surviving as a wholly owned subsidiary of the Company.
Following the closing of the Acquisition, the Company changed its
name from "Paltalk, Inc." to "Intelligent Protection Management
Corp."
On the Closing Date and prior to the Acquisition Closing, the
Company completed the sale to Meteor Mobile Holdings, Inc., a
Delaware corporation of its telecommunications services provider,
"Vumber", as well as its "Paltalk" and "Camfrog" applications and
certain assets and liabilities related to such services provider
and applications pursuant to that certain Asset Purchase Agreement,
by and among the Company, its wholly owned subsidiaries Paltalk
Holdings, Inc., Paltalk Software, Inc., Camshare, Inc., A.V.M.
Software, Inc. and Vumber, LLC, and Meteor Mobile. As a result of
the Divestiture, the Company is no longer engaged in the business
of providing video-based, live streaming, virtual camera and
telecommunications software to consumers, as and to the extent such
businesses were previously conducted by the Company pursuant to the
"Vumber," "Paltalk" and "Camfrog" applications. In addition, prior
to the Acquisition Closing, the Company ceased all operations of
its "Tinychat" service and application.
Jason Katz, Chairman and CEO of IPM, commented, "With the closing
of our acquisition of NTS and our divestiture of our communication
software and multimedia social platforms in early January 2025, we
have officially moved our Company into the cloud infrastructure and
cybersecurity sectors. We believe these transformational
Transactions will have a meaningful impact on our revenue and will
provide us with additional opportunities for growth and a strong
value proposition for our stockholders."
Mr. Katz continued, "While we are focused on delivering growth and
increasing profitability as a managed technology solutions
provider, we believe we bolstered our value in 2024 by successfully
defending our intellectual property. In addition, as a result of
the divesture, IPM is eligible to receive certain earn-out payments
in the future based on the buyer's cash revenue, attributable to
the Paltalk, Camfrog and Vumber applications."
Mr. Katz concluded, "We are very excited with the prospect of
expanding our managed technology solutions business, particularly
in the cloud infrastructure and cybersecurity sectors. Following
the Transactions, our team is re-energized and focused on the
growth of our business. Additionally, we expect that the recently
announced referral arrangement with NewtekOne, a current client and
a financial holding company with tens of thousands of its own
business clients, has great potential to help us find new
customers. We believe that cybersecurity is a technology area that
is top of mind for all companies, small and large, and ripe for
growth. Additionally, we believe there will be ample merger and
acquisition opportunities to further scale growth. We look forward
to growing the business and building a healthy pipeline of
prospective and new customers."
A full-text copy of the Form 10-K is available at
https://tinyurl.com/4fbp3ccp
About Intelligent Protection
Intelligent Management Protection Corp. is a managed technology
solutions provider focused on cybersecurity and cloud
infrastructure. IPM provides dedicated server hosting, cloud
hosting, data storage, managed security, backup and disaster
recovery, and other related services, including consulting and
implementing technology solutions for enterprise and commercial
clients across the United States. IPM also operates ManyCam. The
Company has an over 20-year history of technology innovation and
holds 8 patents.
INTELLIGENT PROTECTION: Wins $65.7MM Verdict in IP Suit vs. Cisco
-----------------------------------------------------------------
On July 23, 2021, Intelligent Protection Management Corp. (f/k/a
Paltalk, Inc.)'s wholly owned subsidiary, Paltalk Holdings, Inc.,
filed a patent infringement lawsuit against WebEx Communications,
Inc., Cisco WebEx LLC, and Cisco Systems, Inc., in the U.S.
District Court for the Western District of Texas. The Company
alleged that certain of Cisco's products infringed U.S. Patent No.
6,683,858, and that we were entitled to damages.
On August 29, 2024, the jury awarded the Company $65.7 million in a
jury verdict in connection with the Lawsuit, the Company disclosed
in a Form 8-K filing with the U.S. Securities and Exchange
Commission. On October 8, 2024, an order granting a motion for
final judgment was entered into in the Court in connection with the
Lawsuit. The Final Judgment was entered in the Company's favor in
the amount of the Award and started the time for filing any
post-trial motions or appeal.
The exact amount of the Award proceeds to be received by us will be
determined based on a number of factors and will reflect the
deduction of significant litigation-related expenses, including
legal fees. Consequently, the Company estimates that it would
receive no more than one third of the gross proceeds in connection
with the Award, subject to post-trial proceedings (including any
potential appellate proceedings by Cisco). The Company says it has
not recorded any gain contingency in connection with the Award.
About Intelligent Protection
Intelligent Management Protection Corp. is a managed technology
solutions provider focused on cybersecurity and cloud
infrastructure. IPM provides dedicated server hosting, cloud
hosting, data storage, managed security, backup and disaster
recovery, and other related services, including consulting and
implementing technology solutions for enterprise and commercial
clients across the United States. IPM also operates ManyCam. The
Company has an over 20-year history of technology innovation and
holds 8 patents.
IQSTEL INC: Signs MOU to Sell 75% Stake in itsBchain for $1MM
-------------------------------------------------------------
iQSTEL Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that it signed a non-binding
memorandum of understanding with Accredited Solutions, Inc. to set
forth the preliminary terms and mutual understanding between the
parties regarding the Company's potential sale of its 75% equity
interest in itsBChain, LLC to ASII, subject to the negotiation and
execution of a definitive Purchase Agreement. The parties have
agreed to execute the Purchase Agreement no later than June 1,
2025, or sooner.
Under the MOU, in exchange for the 75% interest in the Subsidiary,
ASII proposes paying $1,000,000 to the Company as follows:
* $500,000 in restricted preferred shares of ASII, the terms
and features of which will be available prior to execution of the
Purchase Agreement, but should contain preferential treatment on
the stated value in any liquidation of ASII and a conversion price
of the lowest stock price with a 10 day look back at conversion
(but with a conversion limitation of 4.99%, but no greater than
9.99%), ensuring iQSTEL's value is preserved regardless of
fluctuations in ASII's common stock price.
* $500,000 in restricted common shares of ASII, which are
expected to be registered by ASII in a resale offering that is
filed on Form S-1 with the SEC within an agreed time from the close
of the Purchase Agreement.
At some time in the future, the Company plans to distribute the
ASII common shares as dividends to its shareholders.
Further under the MOU, the Company will retain a 1% lifetime
royalty on the Subsidiary's total sales. The Company acknowledges a
remaining investment commitment of $65,000 related to the
Subsidiary. This amount will be paid in monthly installments of
$2,500 directly to the Subsidiary.
"This transaction marks a key milestone in our strategic roadmap,"
said Leandro Iglesias, President & CEO of iQSTEL. "We are
profitably monetizing a non-core subsidiary, strengthening our
balance sheet, and simultaneously rewarding our shareholders by
distributing a significant portion of the proceeds."
This transaction allows iQSTEL to streamline its portfolio and
focus on Telecom, Fintech, AI, and Cybersecurity—the company's
core high-margin business areas. Additionally, iQSTEL will retain a
1% lifetime royalty on itsBChain's total sales, ensuring continued
long-term value from the business.
The company is actively pursuing potential acquisitions, strategic
partnerships, and corporate realignments to strengthen its
valuation and market positioning, ensuring a successful transition
to a major national exchange this year.
The definitive Purchase Agreement is expected to be executed no
later than July 1, 2025. The agreement includes a $250,000 penalty
clause, ensuring ASII's commitment to completing the transaction.
About Accredited Solutions Inc.
Accredited Solutions, Inc. (ASII) is a technology-driven company
focused on strategic investments in fintech, blockchain, and
digital assets. The acquisition of itsBChain aligns with ASII's
expansion strategy in the blockchain and digital finance sectors.
About iQSTEL Inc.
Coral Gables, Fla.-based iQSTEL Inc. (OTCQX: IQST) is a technology
company with operations in 19 countries and a workforce of 70
employees. The company provides advanced services through its
Telecom Division, which offers VoIP, SMS, proprietary Internet of
Things (IoT) solutions, and international fiber-optic connectivity.
This division generates all of iQSTEL's revenues and operates
through subsidiaries including Etelix, SwissLink Carrier, Smartbiz
Telecom, Whisl Telecom, IoT Labs, and QGlobal SMS.
Pittsburgh, Pa.-based Urish Popeck & Co., LLC, the company's
auditor since 2020, issued a "going concern" qualification in its
report dated April 1, 2024. The report cites recurring losses from
operations and insufficient revenue sources to cover operating
costs, raising substantial doubt about the company's ability to
continue as a going concern.
The Company finished the year ended Dec. 31, 2023 with a loss of
$219,436 as compared to a loss of $5,865,761 during the year ended
Dec. 31, 2022. As of June 30, 2024, iQSTEL had $29,986,660 in total
assets, $22,414,781 in total liabilities, and $7,571,879 in total
stockholders' equity.
IRONWOOD GROUP: Case Summary & Four Unsecured Creditors
-------------------------------------------------------
Debtor: Ironwood Group, LLC
24436 Road T
Dolores, CO 81323
Chapter 11 Petition Date: March 27, 2025
Court: United States Bankruptcy Court
District of Colorado
Case No.: 25-11625
Debtor's Counsel: Jeffrey S. Brinen, Esq.
KUTNER BRINEN DICKEY RILEY PC
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Tel: 303-832-2400
Email: jsb@kutnerlaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mark Hartman as manager.
A copy of the Debtor's four unsecured creditors is available for
free on PacerMonitor at:
https://www.pacermonitor.com/view/TBWWVJA/Ironwood_Group_LLC__cobke-25-11625__0003.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/S2F2Q2Y/Ironwood_Group_LLC__cobke-25-11625__0001.0.pdf?mcid=tGE4TAMA
ISLAND VIEW: Gets Court OK to Use Cash Collateral Until May 6
-------------------------------------------------------------
Island View Ranch, LLC got the green light from the U.S. Bankruptcy
Court for the Central District of California, Northern Division, to
use cash collateral.
At the hearing held on March 25, the bankruptcy court authorized
the Debtor to use cash collateral to pay its expenses until May 6.
Island View Ranch operates a single asset real estate property
located at 3376 Foothill Road in Carpinteria, Calif., which
generates most of its income. The Debtor filed as a Single Asset
Real Estate case, as the property and related operations are its
main business. The Debtor's ownership is held by Lois von
Morganroth (75%) and Robyn Whatley (25%), following the death of a
prior member, James Mesa, in 2022. The property was initially
purchased in 2019 with financing from Irwin and Yolanda Overbach,
who hold a secured claim of approximately $4.28 million against the
property.
The Debtor had planned to obtain a cannabis cultivation license for
the property, which was expected to increase its value
significantly. However, the County of Santa Barbara rejected the
cannabis license in November 2024, leading to financial struggles
and the inability to pay off the secured debt. This led to the
initiation of foreclosure proceedings by Overbach. To prevent the
foreclosure and facilitate a reorganization, the Debtor filed for
bankruptcy, seeking to sell the property through a plan of
reorganization.
The Debtor needs to use cash collateral to cover operating expenses
and make monthly payments on the secured debt.
The estimated value of the property is around $6.42 million, and
the Debtor believes that continuing operations will increase the
property's sale price, benefiting creditors more than a foreclosure
would. Overbach's interest in the property is protected by an
adequate equity cushion.
About Island View Ranch
LLC
Island View Ranch LLC is the owner of approximately 9.13 acres of
agricultural zoned land, including raised-bed enclosed greenhouse
grow space, flower drying outbuildings, agricultural storage
outbuildings, occupied by agricultural and commercial tenants that
are paying rent to the Debtor. The Property is located at 3376
Foothill Road, Carpinteria, CA and valued at $6.42 million.
Island View Ranch LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11404) on December
11, 2024. In the petition filed by Robyn Whatley, as manager
member, the Debtor reports total assets of $6,434,132 and total
liabilities of $9,596,177.
The case is overseen by Honorable Bankruptcy Judge Ronald A.
Clifford III.
The Debtor is represented by John K. Rounds, Esq. at ROUNDS &
SUTTER LLP.
JENCAR TRUCKING: Seeks Chapter 11 Bankruptcy in New Jersey
----------------------------------------------------------
On March 28, 2025, Jencar Trucking Corp. filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of New
Jersey. According to court filing, the Debtor reports between $1
million and $10 million in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
About Jencar Trucking Corp.
Jencar Trucking Corp. is a New Jersey-based transportation company
that operates a fleet of commercial trucks.
Jencar Trucking Corp. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 25-13226) on March 28,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each .
The Debtor is represented by Brian Gregory Hannon, Esq. at Law
Office Of Norgaard O'Boyle.
JER INVESTORS: Court Confirms Chapter 11 Plan After Creditors Deal
------------------------------------------------------------------
Yun Park of Law360 reports that on March 26, 2025, a Delaware
bankruptcy judge approved the Chapter 11 plan of New York-based
real estate investment trust JER Investors Trust Inc., which
allocates approximately $2.25 million to general unsecured
creditors.
The approval came after the company reached an agreement with
noteholders who had challenged the plan.
The Troubled Company Reporter on Feb. 20, 2025, reported that Judge
Thomas M. Horan of the U.S. Bankruptcy Court for the District of
Delaware extended JER Investors Trust Inc., and affiliates'
exclusive periods to file a plan of reorganization and obtain
acceptance thereof to March 28 and May 23, 2025, respectively.
As shared by Troubled Company Reporter, the Debtors explain that
an
application of factors establishes sufficient cause to further
extend the Exclusive Periods. First, the Debtors have made good
faith progress towards confirming a chapter 11 plan. Through
mediation, the Debtors resolved in principle the sole objection to
the Combined Disclosure Statement and Plan, and expect to file a
revised Combined Disclosure Statement and Plan promptly. The
Debtors believe they have made good faith progress towards
confirmation and believe the request to extend the Exclusive
Periods as set forth herein is appropriate and reasonable.
Relatedly, the Debtors have demonstrated reasonable prospects for
filing a viable plan. The Court conditionally approved the
disclosures in the Combined Disclosure Statement and Plan, which
reflects and incorporates numerous comments from key parties, and
that document will be further modified in consultation with the
Noteholders and the C-III Parties. The Debtors have also resolved
the sole objection to the Combined Disclosure Statement and Plan,
and now anticipate appearing at the Confirmation Hearing on an
uncontested basis.
Third, since the filing of these Chapter 11 Cases, the Debtors
have
continued to pay their undisputed postpetition expenses and
invoices.
Fourth, this Motion is not intended to pressure creditors,
including the Noteholders and C-III Parties. The Debtors have no
ulterior motive in seeking to extend the Exclusive Periods, but
rather seek the extension requested pursuant to this Motion to
protect, not prejudice, the interests of creditors, including with
respect to the resolution of the Plan-Related Issues mediated by
the parties. An extension of the Exclusive Periods will allow the
Debtors to continue their efforts to maximize estate value while
avoiding the expense and distraction of a competing plan process,
which would likely complicate and increase the costs of
administering these Chapter 11 Cases.
About JER Investors Trust
JER Investors Trust Inc. is a specialty finance company quoted on
the Pink Sheets that manages a portfolio of commercial real estate
structured finance products. Its investments include commercial
mortgage backed securities, mezzanine loans and participations in
mortgage loans, and an interest in the US Debt Fund. JER Investors
Trust Inc. is organized and conducts its operations so as to
qualify as a real estate investment trust ("REIT") for federal
income tax purposes. On the Web: http://www.jerinvestorstrust.com/.
JERIT Non-CDO CMBS 1 LLC and affiliate JER Investors Trust Inc.
sought Chapter 11 protection (Bankr. D. Del. Case No. (23-12108 and
23-12109) on Dec. 29, 2023. JER Investors estimated assets of $10
million to $50 million and debt of $100 million to $500 million.
JERIT Non-CDO estimated assets of $10 million to $50 million and
debt of just under $50,000.
The Hon. Thomas M. Horan is the case judge.
The Debtors tapped TROUTMAN PEPPER HAMILTON SANDERS LLP as counsel;
and DUNDON ADVISERS as financial advisor.
JILL'S OFFICE: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Jill's Office, LLC
960 W White Dr
Suite 1
Ogden UT 84404
Business Description: Jill's Office provides professional, US-
based 24/7 virtual receptionist and
scheduling services designed to support
businesses across various industries. The
Company offers a range of services,
including inbound call answering,
appointment scheduling, live chat support
for websites, and automated lead follow-ups
(Lead Zap). Jill's Office specializes in
delivering tailored, seamless communication
solutions that enhance customer engagement
while eliminating the need for businesses to
hire in-house staff. The Company serves
industries such as home services, real
estate, health and wellness, finance, legal,
and small businesses. Its mission is to
ensure that businesses never miss calls or
opportunities, offering reliable customer
service around the clock.
Chapter 11 Petition Date: March 27, 2025
Court: United States Bankruptcy Court
District of Utah
Case No.: 25-21625
Judge: Hon. Peggy Hunt
Debtor's Counsel: T. Edward Cundick, Esq.
WORKMAN NYDEGGER
60 E. South Temple, Ste. 1000
Salt Lake City UT 84111
Tel: 801-321-8873
E-mail: tcundick@wnlaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brant Thurgood, who serves as the member
manager.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/NDMZ4ZY/Jills_Office_LLC__utbke-25-21625__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/NFDD3OY/Jills_Office_LLC__utbke-25-21625__0001.0.pdf?mcid=tGE4TAMA
JMKA LLC: Court Extends Cash Collateral Access to April 28
----------------------------------------------------------
JMKA, LLC received fourth interim approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to use the cash
collateral of its secured lenders until April 28.
The lenders include the U.S. Small Business Administration,
BayFirst National Bank, Newity Bank, Funding Circle, and
Transportation Alliance Bank, Transportation Alliance Bank, and
Ameris Bank (doing business as Balboa Capital). They assert
security interests in all assets of the company, including cash,
bank deposits and accounts receivable, which constitute their cash
collateral.
The fourth interim order, signed by Judge David Cleary, authorized
the use of cash collateral to pay the expenses set forth in the
company's budget, with a 10% variance allowed.
JMKA was ordered to provide the secured lenders with protection in
the form of replacement liens on its assets to the same extent and
with the same priority and validity as their pre-bankruptcy liens.
Cashfloit, LLC will be treated as a secured creditor and will
receive $4,000 as protection.
The next hearing is set for April 18. Objections are due by April
12.
About JMKA LLC
JMKA, LLC is a boutique childcare center in downtown Elmhurst, Ill.
It operates as Elmhurst Premier Childcare.
JMKA filed Chapter 11 petition (Bankr. N.D. Ill. Case No.
25-00036) on January 3, 2025, with up to $50,000 in assets and up
to $10 million in liabilities.
Judge David D. Cleary oversees the case.
Ben L. Schneider, Esq., at The Law Offices of Schneider & Stone is
the Debtor's bankruptcy counsel.
Ameris Bank is represented by:
Jillian S. Cole, Esq.
Taft Stettinius & Hollister, LLP
111 E. Wacker Drive, Suite 2600
Chicago, IL 60601
(312) 836-4019
jcole@taftlaw.com
JOE'S SPORTS: Hires Essex Richards PA as Bankruptcy Counsel
-----------------------------------------------------------
Joe's Sports Bar Inc. seeks approval from the U.S. Bankruptcy Court
for the Western District of North Carolina to hire Essex Richards,
P.A. as bankruptcy counsel.
The firm will provide these services:
a. provide legal advice concerning the responsibilities as a
Chapter 11 debtor-in-possession and the continued management of the
its business;
b. negotiate, prepare and pursue confirmation of a Chapter 11
plan and approval of disclosure statement, and all related
reorganization agreements and or documents;
c. prepare all necessary motions, applications, reports,
orders, objections and the like associated with prosecuting the
Chapter 11 case;
d. prepare and appear in Bankruptcy Court to protect the
Debtor's best interest;
e. preform and the appear in Bankruptcy Court to protect the
Debtor's best interest; and
f. prosecute and defend the Debtor in all adversary
proceedings related to the base case.
The firm will be paid at these rates:
John C. Woodman $400 per hour
Paralegal $200 per hour
Staff $65 per hour
The firm will be paid a retainer in the amount of $7,500.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
John C. Woodman, Esq., a partner at Essex Richards, P.A., 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:
John C. Woodman, Esq.
ESSEX RICHARDS PA
1701 South Boulevard
Charlotte, NC 28203
Tel: (704) 377-4300
Fax: (704) 372-1357
Email: jwoodman@essexrichards.com
About Joe's Sports Bar Inc.
Joe's Sports Bar Inc., (also known as Village Corner) is a member
of the Scratch Made Hospitality Group, located in Concord, NC. The
restaurant serves a diverse range of breakfast and lunch dishes,
including options like "Biscuit Bennys," "Scrambles," "Handhelds,"
and "Plates/Bowls," with special dishes such as fried chicken,
pulled pork, and shrimp & grits.
Joe's Sports Bar Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. N.C. Case No. 25-30207) on March 4,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge George R. Hodges handles the case.
The Debtor is represented by John C. Woodman, Esq. at ESSEX
RICHARDS PA.
K & M AMUSEMENT: Court Extends Cash Collateral Access to May 8
--------------------------------------------------------------
K & M Amusement Center, LLC received another extension from the
U.S. Bankruptcy Court for the District of Massachusetts to use cash
collateral.
In its proceeding memorandum and order, the bankruptcy court
authorized K & M to use cash collateral on a final basis through
May 8.
The next hearing is scheduled for May 8.
About K & M Amusement Center
K & M Amusement Center, LLC owns and operates an amusement park in
Tewksbury, Mass.
K & M Amusement Center sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 24-41064) on October
22, 2024, with $1 million to $10 million in both assets and
liabilities. Angelica Morales, manager, signed the petition.
Judge Elizabeth D. Katz oversees the case.
The Debtor is represented by Douglas J. Beaton, Esq., at the Law
Office of Douglas J. Beaton.
KATIE KAHANOVITZ: Hires Kelley Kaplan & Eller as General Counsel
----------------------------------------------------------------
Katie Kahanovitz, LLC seeks approval from the U.S. Bankruptcy Court
for Southern District of Florida to hire Kelley Kaplan & Eller,
PLLC as general counsel.
Kelley Kaplan & Eller will provide these services:
(a) advise the Debtor with respect to its powers and duties;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents necessary in the administration of
the case;
(d) protect the interest of the Debtor in all matters pending
before the court;
(e) represent the Debtor in negotiation with its creditors in
the preparation of a plan.
The firm will be paid at these hourly rates:
Attorneys $525
Paralegals $155
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer of $27,500
from the Debtor.
Craig Kelley, Esq., an attorney at Kelley Kaplan & Eller, 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 I. Kelley, Esq.
Kelley Kaplan & Eller, PLLC
1665 Palm Beach Lakes Blvd., Suite 1000
West Palm Beach, FL 33401
Telephone: (561) 491-1200
Facsimile: (561) 684-3773
Email: bankruptcy@kelleylawoffice.com
About Katie Kahanovitz, LLC
Katie Kahanovitz, LLC is a real estate firm specializing in
property sales, rentals, and management services.
Katie Kahanovitz, LLC filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. 25-11992) on
February 26, 2025, listing $228,270 in assets and $2,090,833 in
liabilities. The petition was signed by Katie Kahanovitz as
manager.
Judge Erik P Kimball presides over the case.
Craig I. Kelley, Esq. at KELLEY KAPLAN & ELLER, PLLC represents the
Debtor as counsel.
KLX ENERGY: Swings to $53MM Net Loss in 2024; Revenue Down 20.2%
----------------------------------------------------------------
KLX Energy Services Holdings, Inc. filed its Annual Report on Form
10-K with the U.S. Securities and Exchange Commission, reporting a
net loss of $53 million for the fiscal year ended December 31,
2024, compared to a net income of $19.2 million during the fiscal
year ended December 31, 2023. For the year ended December 31, 2024,
revenues of $709.3 million decreased by $179.1 million or (20.2)%
as compared with the year ended December 31, 2023.
KLX Energy said, "We have substantial indebtedness. Upon completing
the Refinancing on March 12, 2025, we had total outstanding
long-term indebtedness of $287.2 million, comprised of $55 million
outstanding borrowings under our New ABL Facility and $232.2
million in aggregate principal amount of 2030 Senior Notes. Our New
ABL Facility matures in 2028. Under the terms of the 2030 Senior
Notes Indenture, we are required to make quarterly redemptions of
our 2030 Senior Notes in an amount equal to two percent per annum
of all 2030 Senior Notes outstanding as of the prior interest
payment date, which will require us to dedicate all or a
substantial portion of cash from operations to fund such
redemptions. Our ability to pay the principal and interest on our
debt as it becomes due, including the quarterly redemptions of the
2030 Senior Notes, and to satisfy our other liabilities will depend
on our future operating performance. Our future operating
performance will be affected by prevailing economic and political
conditions, the level of drilling, completion, production and
intervention services activity for North American onshore oil and
natural gas resources, the willingness of capital providers to lend
to our industry and other financial and business factors, many of
which are beyond our control."
To service and repay our debt as it becomes due, the Company may be
forced to sell assets or take other disadvantageous actions,
including:
(1) reducing financing in the future for working capital,
capital expenditures and other general corporate purposes and
(2) dedicating an unsustainable level of our cash flow from
operations to the payment of principal and interest on our
indebtedness.
The lenders or other investors who hold debt that the Company fails
to service or on which it otherwise defaults could also accelerate
amounts due, which could in such an instance potentially trigger a
default or acceleration of other debt the Company may incur.
As of December 31, 2024, KLX had $456.3 million in total assets,
$466.8 million in total liabilities, and $10.5 million in total
stockholders' deficit.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/ybjzzx8w
About KLX Energy
KLX Energy Services Holdings, Inc. — https://www.klxenergy.com/
— is a provider of diversified oilfield services to leading
onshore oil and natural gas exploration and production companies
operating in both conventional and unconventional plays in all of
the active major basins throughout the United States. The Company
delivers mission-critical oilfield services focused on drilling,
completion, production, and intervention activities for technically
demanding wells from over 60 service and support facilities located
throughout the United States.
* * *
In March 2025, S&P Global Ratings raised its issuer credit rating
and issue level rating to 'CCC+' from 'CCC' and revised the outlook
to 'stable' from 'negative on Houston-based oilfield services
company KLX Energy Services Holdings Inc. Subsequently, S&P
withdrew all ratings on KLX, including its 'CCC+' issuer credit
rating and issue-level rating, at the issuer's Request.
S&P said, "We raised the ratings to 'CCC+' on the improved debt
maturity profile after KLX refinanced its upcoming note maturity
due November 2025. KLX closed on a new five-year, $232 million
senior secured, floating rate PIK note offering and a new
three-year asset-based lending (ABL) facility to refinance its
upcoming debt maturities due late 2025. $144 million of existing
note holders exchanged into the new notes at par, while the
remaining proceeds, along with cash on hand, were placed into
escrow meeting requirements to fully redeem existing notes at par
on March 30, 2025. We expect the new ABL balance will be consistent
with the amount drawn on the prior facility ($50 million as of Dec.
31, 2024). The transaction eliminated all near-term maturities, and
the company redeemed the existing notes at par value. The stable
outlook reflects our expectation for generally steady credit
measures, including average funds from operations to debt of about
20% in 2025 and 2026, and for the company to generate about
break-even free cash flow in 2025. Subsequently, we withdrew all
ratings on KLX, including our 'CCC+' issuer credit rating and
issue-level rating, at the issuer's request."
KOGA LLC: BankPlus Seeks to Prohibit Cash Collateral Access
-----------------------------------------------------------
BankPlus asked the U.S. Bankruptcy Court for the Eastern District
of Louisiana to prohibit KOGA, LLC from using cash collateral,
which arises from the accounts receivable of Koga Neurosurgery, a
trade name for KOGA.
BankPlus is the holder of multiple promissory notes (Notes 1
through 4) executed by Koga, LLC, for significant sums, with
varying interest rates, repayment terms, and amendments. These
notes are secured by a Commercial Security Agreement that grants
BankPlus a security interest in the debtor’s accounts, chattel
paper, and other assets.
The creditor argues that the Debtor cannot use the cash collateral
generated by the encumbered assets without court authorization.
A court hearing is scheduled for April 16.
A copy of the motion is available at https://urlcurt.com/u?l=8M4VlS
from PacerMonitor.com.
About Koga LLC
Koga LLC is a private practice in Covington, La., specializing in
neurosurgery.
Koga LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. E.D. La. Case No. 24-11318) on July 11, 2024. In the
petition signed by Sebastian F. Koga, as Registered Agent/Managing
Member, the Debtor reports estimated assets and liabilities between
$1 million and $10 million each.
The Honorable Bankruptcy Judge Meredith S. Grabill oversees the
case.
The Debtor is represented by Phillip K. Wallace, Esq., at Phillip
K. Wallace, PLC.
BankPlus, as creditor, is represented by:
Mark C. Landry, Esq.
Jeffrey M. Toepfer, Esq.
Newman, Mathis, Brady, & Spedale
A Professional Law Corporation
3501 N. Causeway Blvd., Suite 300
Metairie, LA 70002
Telephone: (504) 837-9040
Facsimile: (504) 834-6452
mlandry@newmanmathis.com
jtoepfer@newmanmathis.com
KYTTO ENTERPRISE: Seeks Chapter 11 Bankruptcy in Puerto Rico
------------------------------------------------------------
On March 28, 2025, Kytto Enterprise Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of Puerto
Rico. According to court filing, the Debtor reports between
$500,000 and $1 million in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
About Kytto Enterprise Inc.
Kytto Enterprise Inc., operating as Sushi Kytto Bar International
Steak House and Sushi Kytto Juncos, operates Japanese sushi
restaurants and steakhouse establishments across multiple locations
in Puerto Rico, with its principal place of business located in
Gurabo.
Kytto Enterprise Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.P.R. Case No. 25-01382-11) on March 28,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $500,000 and $1 million.
The Debtor is represented by Javier Vilarino at VILARINO &
ASSOCIATES LLC.
LAMAR ADVERTISING: Egan-Jones Retains BB- Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on March 11, 2025, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Lamar Advertising Company.
Headquartered in Baton Rouge, Louisiana, Lamar Advertising Company
owns and operates outdoor advertising structures in the United
States.
LANDMARK HOLDINGS: Gets OK to Tap American Legal as Claims Agent
----------------------------------------------------------------
Landmark Holdings of Florida, LLC and its affiliates received
approval from the U.S. Bankruptcy Court for the Middle District of
Florida to employ American Legal Claim Services, LLC as claims,
noticing, and solicitation agent.
American Legal Claim Services will oversee the distribution of
notices and will assist in the maintenance, processing, and
docketing of proofs of claim filed in the Chapter 11 cases of the
Debtors.
The firm will be paid at these hourly rates:
Managing Director $250
Case Manager $185
Analyst $110
Clerical $60
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an advance deposit retainer of $10,000 from the
Debtors.
Jeffrey Pirrung, a managing director at American Legal Claim
Services, 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:
Jeffrey Pirrung
American Legal Claim Services, LLC
8011 Philips Highway, Ste. 5
Jacksonville, FL 33256
About Landmark Holdings of Florida
Landmark Holdings of Florida, LLC, founded in 2015, manages six
long-term acute care hospitals in Florida, Georgia, and Missouri.
Landmark Hospital is dedicated to delivering advanced care to
medically complex patients who need extended recovery times,
including those with respiratory failure, congestive heart failure,
severe stroke, and multi-system failure. They prioritize critical
care services, utilizing cutting-edge medical technology and
offering compassionate care. The Company's mission is to support
patients in their healing journey, with the goal of becoming the
leading critical care hospital in the areas they serve.
Landmark Holdings of Florida and its affiliates concurrently filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. Fla. Lead Case No. 25-00397) on March 9, 2025,
listing up to $100 million in both assets and liabilities. The
petitions were signed by Bryan Day as chief executive officer.
Judge Caryl E. Delano oversees the cases.
The Debtors tapped Hunton Andrews Kurth LLP as counsel and American
Legal Claim Services, LLC as claims, noticing, and solicitation
agent.
LFR31 VENTURES: Seeks Cash Collateral Access
--------------------------------------------
LFR3I Ventures, LLC asked the U.S. Bankruptcy Court for the Eastern
District of Washington for authority to use cash collateral until a
Chapter 11 plan is approved or until its bankruptcy case is
dismissed.
The Debtor has two secured creditors, Echo Beach and Oculatus, with
outstanding debts of $277,252 and $288,727, respectively, and
various unsecured creditors, including the Spokane County Treasurer
for property taxes.
The Debtor needs cash collateral to maintain daily operations,
including making mortgage payments, paying utilities, insurance,
property taxes, and professional fees.
LFR3I Ventures intends to continue payments on most debts,
excluding Oculatus, due to disputes over the debt amount.
The Debtor's budget shows monthly payments of $4,845 out of an
income of $5,934.
The Debtor also requests a hearing for April 2, 2025, as part of a
scheduled status conference.
About LFR3I Ventures LLC
LFR3I Ventures LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Wash. Case No. 25-00348-FPC11) on
February 27, 2025. In the petition signed by Reneice Jones,
manager-member, the Debtor disclosed up to 1 million in assets and
liabilities.
Judge Frederick P. Corbit oversees the case.
Debra L. Conklin, Esq. represents the Debtor as legal counsel.
LI-CYCLE HOLDINGS: Glencore Entities Hold 66.7% Equity Stake
------------------------------------------------------------
Glencore plc, Glencore International AG, and Glencore Canada
Corporation disclosed in a Schedule 13D/A filed with the U.S.
Securities and Exchange Commission that as of March 14, 2025, they
beneficially owned 84,404,412 common shares (including shares
issuable upon conversion of secured and unsecured notes, subject to
adjustment and accrued but unpaid interest) of Li-Cycle Holdings
Corp., representing approximately 66.7% of the outstanding common
shares.
Glencore Canada Corporation may be reached through:
Peter Wright
Glencore Canada Corporation, 100 King Street West, Suite 6900
Toronto, A6, M5X 1E3
Tel: (416) 775-1500
A full-text copy of Glencore's SEC report is available at:
https://tinyurl.com/29j2zmmf
About Li-Cycle Holdings Corp.
Li-Cycle Holdings Corp. is a Canada-based global lithium-ion
battery resource recovery company and pure-play lithium-ion battery
recycler.
Vaughan, Canada-based KPMG LLP, the Company's former auditor,
issued a "going concern" qualification in its report dated March
15, 2024, citing that the Company has suffered recurring losses
from operations since inception, continued cash outflows from
operating activities and paused its construction of the Rochester
Hub project, that raise substantial doubt about its ability to
continue as a going concern.
Li-Cycle reported a net loss of $138 million for the year ended
December 31, 2023, compared to net loss of $70.8 million for the
year ended December 31, 2022. As of June 30, 2024, Li-Cycle had
US$899.9 million in total assets, US$664.2 million in total
liabilities, and US$235.7 million in total equity.
LIFT SOCIETY: Seeks to Hire RHM Law LLP as Legal Counsel
--------------------------------------------------------
Lift Society, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ RHM Law LLP as
counsel.
The firm will provide these services:
-- advise and assist regarding compliance with the requirements
of the United States Trustee ("UST");
-- advise regarding matters of bankruptcy law, including the
rights and remedies of the Debtor in regard to its assets and with
respect to the claims of creditors;
-- advise regarding cash collateral matters;
-- conduct examinations of witnesses, claimants or adverse
parties and to prepare and assist in the preparation of reports,
accounts and pleadings;
-- advise concerning the requirements of the Bankruptcy Code and
applicable rules;
-- assist with the negotiation, formulation, confirmation and
implementation of a Chapter 11 plan of reorganization; and
-- make any appearances in the Bankruptcy Court on behalf of the
Debtor; and to take such other action and to perform such other
services as the Debtor may require.
The firm will be paid at these rates:
Partners $650 to $700 per hour
Associates $400 to $550 per hour
Paralegals $135 to $175 per hour
The Debtor paid $35,000 to the Firm on September 13, 2024.
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Roksana D. Moradi-Brovia, Esq., a partner at RHM Law LLP ,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Roksana D. Moradi-Brovia, Esq.
Matthew D. Resnik, Esq.
RHM LAW LLP
17609 Ventura Blvd., Suite 314
Encino, CA 91316
Tel: (818) 285-0100
Fax: (818) 855-7013
Email: roksana@RHMFirm.com
matt@RHMFirm.com
About Lift Society, Inc.
Established in 2016, Lift Society Inc. is a boutique fitness center
focused on strength and aesthetic training. The gym provides
semi-private lifting sessions, with a capacity of 8 to 12 people
per class, ensuring individualized guidance and expert coaching.
LIFT Society has several locations across Los Angeles, including
Hollywood, Studio City, Culver City, and Santa Monica.
Lift Society sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-10258) on
February 19, 2025. In its petition, the Debtor reported total
assets of $172,083 and total liabilities of $1,235,866.
Judge Martin R. Barash handles the case.
The Debtor is represented by:
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
LILLY INDUSTRIES: Court Extends Cash Collateral Access to June 3
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Santa Ana Division, granted Lilly Industries, Inc. a 90-day
extension to use cash collateral.
The interim order approved the company's use of cash collateral
from March 5 to June 3 to pay the expenses set forth in its budget,
with a 10% variance allowed.
As protection for the use of its cash collateral, the U.S. Small
Business Administration was granted a replacement lien on all
post-petition revenues of the company.
In addition, the SBA will continue to receive a monthly payment of
$5,129.
A final hearing will be held on April 22.
About Lilly Industries Inc.
Lilly Industries, Inc. (doing business as The Slab Studio) is a
trade-only gallery that offers architects, contractors, dealers,
and designers access to the finest natural stone and semi-precious
slabs, ensuring a sophisticated, one-of-a-kind viewing experience.
With discerning standards and a global reach, they act as a trusted
partner for those seeking premium materials for high-end design
projects.
Lilly Industries filed Chapter 11 petition (Bankr. C.D. Calif. Case
No. 25-10301) on February 3, 2025, listing between $500,001 and $1
million in assets and between $1 million and $10 million in
liabilities. Robert Goe, Esq., a practicing attorney in Irvine,
Calif., serves as Subchapter V trustee.
Judge Theodor Albert oversees the case.
The Debtor tapped Brian M. Rothschild, Esq., at Parsons Behle &
Latimer as legal counsel and Rocky Mountain Advisory, LLC as
accounting and financial advisor.
LOCAL EATERIES: Seeks $200,000 DIP Loan From Chris Roach
--------------------------------------------------------
Local Eateries, Inc. and affiliates asked the U.S. Bankruptcy Court
for the Middle District of Tennessee, Nashville Division, for
authority to obtain post-petition financing on a senior secured
super-priority basis.
The Debtors need post-petition financing for three reasons. First,
a breakdown with Manufactured Networks, Inc. led to the Debtors
losing most of their cash, leaving them unable to purchase
inventory. Second, Merchant Cash Advances withdrew weekly payments,
and failure to pay caused the freezing of inbound deposits. Lastly,
the Debtors need funds to prepay farmers for inventory, as their
sales cash flow is slow to cover the necessary inventory purchases
and operating expenses.
Chris Roach has agreed to provide the Borrowing Debtors with a
post-petition DIP Facility in the maximum aggregate amount of
$200,000. The DIP Facility contemplates the “roll-up” of a
$300,000 credit facility issued by the DIP Lender to Debtors just
prior to the Petition Date, which facility was used to finance
critical operations and payments to vendors, employees, insurance,
and similar expenses to enable the Debtors to survive long enough
to file these cases.
The Debtors will use DIP financing in order to pay administrative
expenses, including facility rent, to purchase inventory, and
further to fund Debtors' operations.
The DIP facility is due and payable on the earlier of (I) the date
that is 120 days after the date on which the Final Order is entered
in the Chapter 11 Case; (ii) the effective date of the Borrower's
Chapter 11 plan of reorganization; or (iii) such date that an Event
of Default occurs that is not otherwise cured, if allowed under the
Loan Documents.
The Debtors do not dispute the validity or extent of liens in favor
of First Citizens Bank & Trust, Shopify Financing, Chris Roach,
FinTap, PIRS Capital, or Manufactured Networks, Inc.
As of the Petition Date, various parties claimed blanket liens on
the Borrowing Debtors' assets. For Local Eateries, Inc., Silicon
Valley Bank initially filed a blanket lien in July 2021, which was
later assigned to First Citizens Bank & Trust in July 2024. Shopify
Financing, represented by Middesk, filed several UCC-1 statements
from February to December 2024 asserting a blanket lien.
Additionally, Chris Roach filed UCC-1 statements in February 2025
claiming a blanket lien. An unknown creditor, believed to be RDM
Capital Funding, filed and later refiled a UCC-1 in March 2025,
asserting a claim over Local Eateries' assets. PIRS Capital, LLC
also filed a lien on Local Eateries' accounts receivable in
February 2025. For Local Eateries, LLC, an unknown creditor filed a
UCC-1 in May 2023 claiming all business assets, while Manufactured
Networks, Inc. filed a UCC-1 in June 2023, initially for
consignment inventory, but later amended it to include all assets.
This was further updated in January 2025, adding Local Eateries,
Inc. as a debtor. Chris Roach also filed a blanket lien on Local
Eateries, LLC in February 2025. Lastly, Porter Road Butcher Meat
Co., LLC had no UCC-1 filings related to cash or cash collateral.
As adequate protection for cash collateral (if any) expended by the
Debtor to pay expenses set forth in the Budget, the Debtors'
purportedly secured creditors (other than the DIP Lender) will be
granted a replacement security interest under 11 U.S.C. Section
361(2) in the Debtor's postpetition property and proceeds thereof,
to the same extent and priority as each Secured Creditors'
purported security interest in the Debtors' pre-petition property
and the proceeds thereof, subject to the DIP Facility and
super-priority interest of the DIP Lender and the Carve-Out.
A copy of the motion is available at https://urlcurt.com/u?l=fKdAAL
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. Lead Case 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.
LOCAL EATERIES: Taps Dunham Hildebrand Payne Waldron as Counsel
---------------------------------------------------------------
Local Eateries, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the Middle District of Tennessee to employ
Dunham Hildebrand Payne Waldron, PLLC as counsel.
The firm will provide these services:
(a) render legal advice with respect to the rights, power, and
duties of the Debtors in the management of their assets;
(b) investigate and, if necessary, institute legal action on
behalf of the Debtors to collect and recover assets of their
estates;
(c) prepare all necessary pleadings, orders and reports with
respect to this proceeding and render all other necessary or proper
legal services;
(d) assist and counsel the Debtors in the preparation,
presentation, and confirmation of plans of reorganization;
(e) represent the Debtors as may be necessary to protect their
interests; and
(f) perform all other legal services that may be necessary and
appropriate in the general administration of the Debtors' estates.
The firm will be paid at these hourly rates:
Attorneys $475 - $550
Paralegal $175 - $225
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a total combined retainer of $85,000 from the
Debtors.
R. Alex Payne, Esq., an attorney at Dunham Hildebrand Payne
Waldron, 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:
R. Alex Payne, Esq.
Dunham Hildebrand Payne Waldron PLLC
9020 Overlook Blvd., Ste. 316
Brentwood, TN 37027
Telephone: (629) 777-6539
Email: alex@dhnashville.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.
Local Eateries Inc. and its affiliates sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D.
Tenn. Lead Case No. 25-01131) on March 17, 2025. In its petition,
Local Eateries reports estimated assets between $1 million and $10
million and estimated liabilities between $10 million and $50
million.
Honorable Bankruptcy Judge Charles M. Walker handles the case.
Dunham Hildebrand Payne Waldron PLLC serves as the Debtors'
counsel.
LV BENZENE: Seeks to Hire Larson & Zirzow as Bankruptcy Counsel
---------------------------------------------------------------
LV Benzene, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Nevada to hire Larson & Zirzow, LLC as its
bankruptcy counsel.
The firm's services include:
(a) prepare on behalf of the Debtor all necessary or
appropriate legal papers in connection with the administration of
its bankruptcy estate;
(b) take all necessary or appropriate actions in connection
with a plan of reorganization and all related documents, and such
further actions as may be required in connection with the
administration of the Debtor's estate;
(c) take all necessary actions to protect and preserve the
Debtor's estate; and
(d) perform all other necessary legal services in connection
with the prosecution of the Chapter 11 case.
The firm will be paid at these rates:
Zach Larson, Principal $650 per hour
Matthew C. Zirzow, Principal $650 per hour
Benjamin Chambliss, Associate $500 per hour
Patricia Huelsman, Paralegal $295 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-petition retainer in the amount of
$35,000.
Mr. Zirzow disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Matthew C. Zirzow, Esq.
Larson & Zirzow, LLC
850 E. Bonneville Ave.
Las Vegas, NV 89101
Tel: (702) 382-1170
Fax: (702) 382-1169
Email: mzirzow@lzlawnv.com
About LV Benzene, LLC
LV Benzene, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No.
25-11150) on Feb. 28, 2025, listing $1,000,001 to $10 million in
both assets and liabilities.
Judge Natalie M Cox presides over the case.
Matthew C. Zirzow, Esq. at Larson & Zirzow LLC represents the
Debtor as counsel.
MACY'S INC: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable
-------------------------------------------------------------
Moody's Ratings affirmed Macy's, Inc.'s Ba1 corporate family rating
and its Ba1-PD probability of default rating. The ratings of the
senior unsecured notes at Macy's, Inc. assumed by Macy's Retail
Holdings, LLC (MRH) and MRH's senior unsecured notes and backed
senior unsecured notes were also affirmed at Ba2. In addition,
MRH's backed commercial paper program rating was affirmed at Not
Prime. Macy's speculative grade liquidity rating (SGL) remains
unchanged at SGL-1. The outlook for MRH and Macy's remains stable.
RATINGS RATIONALE
Macy's, Inc.'s Ba1 corporate family rating reflects its very good
liquidity and its conservative capital allocation strategy which
includes moderate shareholder distributions. The rating also
reflects Macy's market position as the US's largest department
store chain with FY 2024 net sales of roughly $22 billion. Its
integrated approach to stores and online enhances its ability to
meet the demands of the rapidly changing competitive environment.
The company has improved its operating performance through customer
re-engagement, cost reduction and solid inventory management and
continues to work to increase its revenue stream beyond the
traditional Macy's stores with the expansion of its off-mall small
format Macy's and Bloomingdale's formats, its digital Marketplace
and continued growth of its luxury concepts, Bloomingdale's and
Bluemercury. Ratings remain constrained by the risk of continued
pressure on discretionary spending, its low retail operating
margins and any weakening of its credit portfolio. Macy's has very
good liquidity evidenced by its $1.3 billion in cash at the end of
fiscal 2024 and good free cash flow generation.
The stable outlook reflects the company's success in reducing its
cost structure and its conservative financial strategy. It also
reflects the expectation that Macy's can maintain its current
market position as well as its current level credit metrics
despited the difficult consumer demand environment.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Macy's demonstrates a consistent
track record of sales and operating income performance which
includes a stabilization or increase in its market share relative
to alternative competitive channels as well as its department store
peers. In addition, the company must also continue to reduce its
reliance on traditional mall based assets through the successful
execution of new growth strategies such as Macy's and
Bloomingdale's Digital Marketplaces and its off-mall small format
Macy's and Bloomingdale's concepts in order for an upgrade to be
considered. An upgrade would also require sustained improvement in
retail profit margins and a capital structure that is commensurate
with an investment-grade rating. Quantitatively, a rating upgrade
would also require maintaining very good liquidity including strong
free cash flow generation and a conservative and clearly
articulated financial strategy. Quantitatively ratings could be
upgraded if debt/EBITDA is sustained below 2.0 times and
EBIT/interest expense is sustained above 5.5 times.
Ratings could be downgraded should Macy's liquidity or free cash
flow generation deteriorate, comparable sales performance reflect
weaker market positioning, operating performance including retail
margins deteriorate or a more aggressive financial strategy is
pursued including the utilization of unencumbered assets for any
purpose other than deleveraging. Quantitatively, ratings could be
downgraded should debt/EBITDA be sustained above 3.25x and
EBIT/interest is sustained below 3.75x.
With its corporate office in New York, NY, Macy's, Inc. is one of
the nation's premier retailers, with FY 2024 net sales of
approximately $22 billion. The company operates stores in 43
states, the District of Columbia, Guam and Puerto Rico under the
names of Macy's, Bloomingdale's, Bloomingdale's The Outlet, Macy's
Backstage, Macy's small format, Bloomie's, and Bluemercury, as well
as the macys.com, bloomingdales.com and bluemercury.com websites.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
MADISON IAQ: Moody's Affirms B2 CFR & Rates New First Lien Debt B1
------------------------------------------------------------------
Moody's Ratings affirmed its ratings of Madison IAQ LLC (Madison
Air), including the B2 corporate family rating, B2-PD probability
of default rating, B1 senior secured rating and Caa1 senior
unsecured rating. Moody's also assigned a B1 rating to the
company's new $1.75 billion incremental first lien senior secured
term loan and $300 million senior secured first lien revolving
credit facility. The rating outlook remains stable.
The affirmation of the ratings follows Madison Air's announcement
of a pending acquisition. Madison Air will fund the acquisition
with the net proceeds of the new incremental term loan, along with
new cash equity and cash on hand. Moody's views the acquisition
positively as it will expand Madison Air's portfolio of air
purification products and increase its penetration across end
markets. Moody's also expects that the acquisition will be
accretive to the company's free cash flow.
RATINGS RATIONALE
The B2 corporate family rating reflects Moody's expectations for
ongoing strong demand of Madison Air's products and services in the
niche indoor air quality category, which will result in strong
revenue growth over the next 12-18 months. The company's strong
profit margins and cash generation reflect an expansion in both
product offerings and end-markets, leveraging its expertise in air
quality products and ongoing operational efficiencies. Despite high
leverage, with debt/EBITDA of around 7x pro forma for the
acquisition, Moody's expects debt/EBITDA to decline to around 6x by
the end of 2025. The ratings also reflect Moody's expectations that
the acquisition will enhance the company's free cash flow towards
$400 million in 2025.
Madison Air benefits from its good competitive scale with an
established market position. The company maintains good
profitability with its EBITDA margin exceeding 20%. A significant
contribution from replacement and retrofit parts supports the
strong consolidated profitability and helps mitigate downward
pressure during troughs in economic cycles.
Moody's expects Madison Air to operate with good liquidity over the
next 12-18 months. Upon completion of the acquisition, Moody's
expects a modest cash balance. However, Moody's projects cash to
increase towards $100 million by the end of 2025, from retention of
free cash flow of around $400 million in 2025. Term loan
amortization of around $42 million per annum is manageable. Moody's
expects the company to maintain at least $300 million of committed
revolving credit, which Moody's expects will remain undrawn. The
credit facility will contain a springing first lien leverage
covenant which comes into effect if more than 35% of the facility
is used.
The stable outlook reflects Moody's expectations of modest earnings
growth and continued free cash flow generation, much of which
Madison Air will use to reduce debt over the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if Moody's expects free cash flow/debt
and debt/EBITDA will be sustained above 7% and below 5x,
respectively. Ratings could be downgraded if debt/EBITDA is
sustained above 7x or if liquidity weakens such that free cash flow
is negative.
Headquartered in Chicago, Illinois, Madison IAQ LLC manufactures
indoor air quality solutions for commercial and residential
establishments including hospitals, education, hospitality,
distribution, retail, residential, service, office and
manufacturing facilities. Revenue pro forma for the pending
acquisition will exceed $3.1 billion in 2024.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
MANA GROUP: Seeks Chapter 11 Bankruptcy in Texas
------------------------------------------------
On March 27, 2025, Mana Group Pharmacies LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Northern District
of Texas. According to court filing, the
Debtor reports $4,952,261 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Mana Group Pharmacies LLC
Mana Group Pharmacies LLC, 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.
Mana Group Pharmacies LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-31057) on March
27, 2025. In its petition, the Debtor reports total assets of
$332,938 and total liabilities of $4,952,261.
The Debtor is represented by David R. Langston, Esq. at MULLIN
HOARD & BROWN, L.L.P.
MANITOWOC CO: Egan-Jones Retains BB- Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on March 4, 2025, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Manitowoc Company, Inc. EJR also withdrew its rating
on commercial paper issued by the Company.
Headquartered in Milwaukee, Wisconsin, Manitowoc Company, Inc. is a
diversified industrial manufacturer of cranes and related products.
MARKUS CORP: Court Extends Cash Collateral Access to April 30
-------------------------------------------------------------
Markus Corp received interim approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to use cash collateral
until April 30, marking the second extension since the company's
Chapter 11 filing.
The court's previous interim order allowed the company to access
cash collateral from March 12 to 31.
The company needs to use its lenders' cash collateral to pay the
expenses set forth in its budget, which shows total operational
expenses of $23,975 for the period from April 1 to 30.
Markus owes $426,224.08 and $264,476.06 to the U.S. Small Business
Administration and Village Bank & Trust, N.A., respectively. These
creditors have perfected liens on the company's assets, including
cash, bank deposits and accounts receivable, which constitute cash
collateral.
As protection, both lenders were granted a replacement lien on
substantially all of the company's assets to the same extent and
with the same validity as their pre-bankruptcy liens.
The lenders will also be granted an administrative expense claim as
additional protection.
The next hearing is scheduled for April 29.
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.
Secured lender Village Bank & Trust, N.A. is represented by:
Jeffrey S. Burns, Esq.
Markoff Leinberger, LLC
200 S. Wacker Drive, FL 31
Chicago, IL 60606
Tel: (312) 589-7600
jeff@markleinlaw.com
MARRIOTT INT'L: Egan-Jones Retains BB+ Sr. Unsec. Ratings
---------------------------------------------------------
Egan-Jones Ratings Company on March 13, 2025, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Marriott International, Inc.
Headquartered in Bethesda, Maryland, Marriott International, Inc.
of Maryland operates as a hotel.
MARRIOTT VACATIONS: S&P Lowers Sr. Unsecured Notes Rating to 'B'
----------------------------------------------------------------
S&P Global Ratings lowered its issue-level rating on Marriott
Vacations Worldwide Corp.'s senior unsecured notes to 'B' from 'B+'
and revised the recovery rating to '6' from '5' to reflect
increased secured debt in its assumed recovery waterfall for the
company, which reduces the collateral available to the unsecured
lenders in a simulated default scenario.
S&P said, "The '6' recovery rating indicates our expectation for
negligible (0%-10%; rounded estimate: 0%) recovery in a
hypothetical default scenario. Earlier, Marriott Vacations issued a
new $450 million delayed draw term loan (DDTL; not rated) due 2027
and amended its revolving credit facility to increase its
commitment to $800 million, from $750 million, and extend its
maturity to 2030 (from 2027). The company intends to use the
proceeds from the DDTL to pay down its 0.0% convertible notes that
mature in January 2026. While the DDTL remains undrawn, we assume
in our recovery analysis that Marriott Vacations will use the
proceeds from it--in combination with revolver availability or cash
on hand--to repay its convertible notes maturing January 2026.
Therefore, we have excluded the company's outstanding convertible
notes due 2026 from our recovery analysis and waterfall.
Additionally, we believe the company could ultimately refinance the
convertible notes with new unsecured or convertible debt. However,
in the interim, the DDTL adds approximately $460 million of
incremental secured debt in our assumed waterfall. The upsized
revolver also adds a modest amount of secured debt to our waterfall
because we assume that the facility is 85% drawn at the time of
default. Therefore, less value is available to Marriott Vacations'
unsecured lenders in our recovery scenario following a hypothetical
default.
"Our 'BB-' issuer credit rating and negative outlook on the company
are not affected by the proposed transaction. We continue to
forecast Marriott Vacations' S&P Global Ratings-adjusted debt to
EBITDA will be in the mid-5x area in 2025, down from approximately
6x in 2024. The company's EBITDA was reduced by elevated loan loss
provisioning, including the reserves it took in the second quarter
and higher provisioning in the second half of 2024, decreased
volume per guest, and a prolonged recovery at its Maui resorts."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P rates Marriott Vacations' senior secured debt 'BB+' with a
'1' recovery rating. The '1' recovery rating indicates its
expectation for very high (90%-100%; rounded estimate: 95%)
recovery for secured lenders in the event of a default. The senior
secured debt comprises its term loan due 2031, the upsized
revolving corporate credit facility due 2030, and the DDTL due
2027. Marriott Ownership Resorts Inc. is the subsidiary borrower of
the secured debt.
-- S&P said, "We rate the company's senior unsecured debt 'B' with
a '6' recovery rating. The '6' recovery rating indicates our
expectation for negligible (0%-10%; rounded estimate: 0%) recovery
prospects. Marriot Vacations' senior unsecured debt comprises its
notes due 2027 (convertible; not rated), 2028, and 2029. The
convertible notes due 2027 were issued by Marriott Vacations
Worldwide and we view them as ranking pari passu with the senior
unsecured debt issued by Marriott Ownership Resorts Inc. (due 2028
and 2029) because both benefit from the same guarantees. The senior
unsecured debt also shares the same guarantees as the secured debt,
albeit on an unsecured basis."
-- S&P said, "Our simulated default scenario contemplates a
payment default occurring by 2029 due to the loss of key
exclusivity contracts with developers and homeowners' associations,
as well as an overall decline in the popularity of timeshares. Our
simulated default scenario also incorporates a severe economic
downturn and tighter consumer credit markets, as well as
illiquidity in the financial markets for timeshare securitizations
and conduit facilities."
-- S&P assumes a reorganization following the default and use an
emergence EBITDA multiple of 6.5x to value the company.
Simulated default assumptions
-- Emergence EBITDA: $309 million
-- EBITDA multiple: 6.5x
-- Revolving corporate credit facility: 85% drawn at default
Simplified waterfall
-- Gross recovery value: $2.0 billion
-- Net recovery value (after 5% administrative expenses): $1.91
billion
-- Obligor/nonobligor split: 95%/5%
-- Value available for senior secured debt: $1.87 billion
-- Estimated senior secured debt claims: $1.87 billion
--Recovery expectations: 90%-100% (rounded estimate: 95%)
-- Remaining value for senior unsecured debt: $35 million
-- Estimated senior unsecured debt claims: $1.45 billion
--Recovery expectations: 0%-10% (rounded estimate: 0%)
Note: All debt amounts include six months of prepetition interest.
MASS POWER: Seeks to Hire John Desmond as Bankruptcy Counsel
------------------------------------------------------------
Mass Power Solutions LLC seeks approval from the U.S. Bankruptcy
Court for the District of Massachusetts to employ John Desmond,
Esq., an attorney practicing in Framingham, Massachusetts, to
handle its Chapter 11 case.
Mr. Desmond will be paid at his hourly rate of $400 plus
reimbursement for out-of-pocket expenses incurred.
The attorney received a pre-petition retainer of $10,000 from the
Debtor.
Mr. Desmond disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The attorney can be reached at:
John O. Desmond, Esq.
5 Edgell Road, Suite 30A
Framingham, MA 01701
Telephone: (508) 879-9638
Email: attorney@jdesmond.com
About Mass Power Solutions
Mass Power Solutions LLC is an electrical contracting company
specializing in renewable energy solutions, including solar project
design, installation, and management, serving both residential and
commercial clients.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 25-40234) on March 5,
2025. In the petition signed by Ryan Lane, manager, the Debtor
disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge Elizabeth D. Katz oversees the case.
John O. Desmond, Esq., represents the Debtor as legal counsel.
MATH & SCIENCE: S&P Lowers Debt Rating to 'BB', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered its rating on Math and Science Academy
(MSA), Minn.'s existing debt to 'BB' from 'BB+'. S&P Global Rating
also assigned its 'BB' long-term rating to Woodbury, Minn.'s $60.96
million series 2025 charter school lease revenue and refunding
bonds, issued for MSA. The outlook is negative.
"The downgrade reflects MSA's material increase of additional debt
that, although about $8 million will be used to refinance the
series 2020 bonds, still materially weakens the school's debt
burden and other leverage metrics. It also reflects weak pro forma
lease-adjusted maximum annual debt service coverage and declining
liquidity levels compared with previous years," said S&P Global
Ratings credit analyst Brian Marshall.
"Management expects material improvement in liquidity for fiscal
2025 after MSA was reimbursed from the Affiliated Building Co. for
capital project related costs during the fiscal year," Mr. Marshall
added.
Following the series 2025 issuance, MSA's pro forma long-term debt
will be about $61 million. The bonds are a general obligation of
the building company, MSA Building Co., a single-purpose entity
created exclusively to acquire, own, and lease facilities on behalf
of MSA. The debt is secured by a first-mortgage lien on the new
building and currently owned buildings, a fully funded debt service
reserve, and a security interest in the lease payments made by the
academy to MSA Building Co. using state lease aid. The bonds are
further secured by a gross pledge of the school's per-pupil state
aid and certain federal pass-through payments from the state.
S&P said, "The negative outlook reflects our view that there is at
least a one-in-three change we could lower the rating during the
outlook period associated with MSA's expansion risk into a second
facility, which could pressure financial metrics given the elevated
debt burden and possible weakening of operations and coverage,
which depend on significant growth in enrollment to improve.
Although we believe management has adequately planned the expansion
and MSA has sufficient demand to be able to meet enrollment
projections, should this enrollment not materialize as planned, the
rating could be further pressured. We understand that MSA has
applied to the authorizer for its expansion into kindergarten to
grade 5 and expect official approval by September 2025. The school
currently has the authority to increase enrollment.
"We could lower the rating should MSA not realize projected
enrollment and timely completion of the new facility, resulting in
weakened financial metrics, including further declines in liquidity
below projections or material weakening in maximum annual debt
service coverage to levels no longer commensurate with the current
rating level. We could revise the outlook to stable if MSA
successfully completes the construction of the new campus on time
while expanding to serve kindergarten to grade 12 students across
both campuses on time and in line with budgetary projections
commensurate with the current rating level."
MERMAID BIDCO: Moody's Affirms 'B2' CFR, Outlook Remains Stable
---------------------------------------------------------------
Moody's Ratings affirmed Mermaid Bidco Inc.'s (dba Datasite)
corporate family rating at B2 and probability of default rating at
B2-PD. Concurrently, Moody's affirmed the company's senior secured
bank credit facility rating at B2, including the revolving credit
facility expiring in January 2031 and the US dollar and Euro
denominated term loans due July 2031. The outlook remains stable.
Datasite is a global SaaS platform offering secure virtual data
room (VDR) and project management solutions for complex strategic
projects.
The affirmation of the B2 CFR reflects Datasite's high revenue
visibility, strong EBITDA margins, solid cash flow generation, and
established track record of revenue growth and profit margin
expansion. The rating is pressured by the company's modest revenue
size and narrow operating scope within the VDR and content
collaboration industry industry, as well as by its aggressive
financial policy of debt-funded acquisitions, which delays
deleveraging efforts.
RATINGS RATIONALE
Datasite's credit profile is constrained by its high debt-to-EBITDA
leverage, which Moody's estimates was around 4.6x as of January 31,
2025, pro forma for acquisitions, or around 5.1x after expensing
capitalized software development costs. The company's modest
revenue size, concentrated operations, and significant exposure to
sell-side M&A activities create a variable and uncertain revenue
trajectory. Datasite operates in a fragmented, highly competitive
environment susceptible to technological changes. Its aggressive
financial strategies involving debt-funded acquisitions are
expected to persist, delaying deleveraging efforts and exerting
pressure on its credit profile.
The credit profile is supported by its defensible market position
and long operating history as a provider of secure online
workspaces, with a reputation for product reliability and
security. The company also benefits from geographic
diversification, high customer retention rates, and a significant
portion of recurring sales from repeat business, which enhance
revenue predictability. Moody's expects organic revenue growth in
the mid-teens percentage range and a strong EBITDA margin of around
44% over the next 12-18 months. Moody's also anticipates that the
company will maintain good liquidity, with free cash flow-to-debt
of in a mid-to-high single-digit percentage range over the next 12
to 15 month.
All financial metrics cited reflect Moody's standard adjustments.
Datasite's very good liquidity is supported by the company's $135
million of cash on hand as of January 31, 2025, and Moody's
expectations of annual free cash flow generation of $90-$100
million over the next 12 to 15 months. The company has nearly full
access to its $100 million multi-currency revolving credit facility
expiring in January 2031. Moody's believes that available liquidity
sources provide good coverage relative to the annual 1% mandatory
US dollar term loan amortization (with no required amortization on
the EUR tranche), paid quarterly.
There are no financial maintenance covenants applicable to the term
loans, but the revolver is subject to a springing maximum senior
secured first lien net leverage ratio (as defined in the credit
agreement) of 7.5x if the amount drawn exceeds more than 40% of the
revolving credit facility. Moody's do not expect the covenant to be
triggered in the near term, and Moody's believes Datasite will
maintain substantial headroom under the financial covenant.
Debt capital consists of a $100 million multi-currency senior
secured revolving credit facility expiring in January 2031, an $813
million (current balance) senior secured term loan B due in July
2031, and a EUR531 (current balance) million senior secured term
loan B due in July 2031. The B2 senior secured first lien credit
facility rating (including the revolver and term loans), issued by
Mermaid BidCo Inc., aligns with the B2 CFR since it represents the
majority of debt in Datasite's capital structure. The revolver and
term loans are part of the same debt class and are secured pari
passu with each other.
The company indicated that audited and unaudited financial
statements will be provided under Datasite International LLC
starting January 2025, including the annual financial report as of
January 31, 2025. As of November 30, 2024, the financial reporting
was under Mermaid Bidco Inc.
The stable outlook reflects Moody's expectations that Datasite will
achieve organic revenue growth in the mid-teens percentage range
and sustain its EBITDA margin in the mid-40s percentage range over
the next 12 to 18 months. Moody's also projects the company's
debt-to-EBITDA, with all capitalized software development costs
expensed and including opportunistic acquisitions, to be below 5x
in fiscal year 2026, while maintaining strong liquidity, including
free cash flow-to-debt of at least 6%.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Datasite expands its scale and
service line diversity, and commits to a more balanced financial
policy while maintaining at least good liquidity. The ratings could
also be upgraded if Moody's expects the company to maintain
debt-to-EBITDA (based on Moody's calculations) around 4x and free
cash flow-to-debt in the high-single digits.
The ratings could be downgraded if operating performance weakens or
if it sustain free cash flow-to-debt below 5%. The ratings could be
also pressured if the company's debt-to-EBITDA (based on Moody's
calculations) trends above 6x, or if the company adopts a more
aggressive financial policy.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Datasite, headquartered in Minneapolis, MN, offers a secure,
on-demand SaaS platform used by enterprise and advisory customers
for information management and collaboration on complex,
confidential, and regulated business projects. The company
specializes in virtual data rooms, which provide online spaces for
companies to store and share sensitive documents during M&A
transactions and other processes. Datasite is primarily owned by
affiliates of private equity sponsor CapVest Partners LLP, with
minority stakes held by 22C Capital and management. Moody's
anticipates the company will generate approximately $800 million in
revenue for the fiscal year 2026 (ends January 31).
MILAN SAI: Court Extends Cash Collateral Access to April 22
-----------------------------------------------------------
Milan Sai Joint Venture, LLC received interim approval from the
U.S. Bankruptcy Court for the Northern District of Texas, Dallas
Division, to use cash collateral until April 22, marking the fifth
extension since the company's Chapter 11 filing.
The court's previous interim order allowed the company to access
cash collateral until March 20 only.
The fifth interim order authorized the company to use cash
collateral to pay the expenses set forth in its budget, with a 10%
variance allowed. The budget shows total projected
expenses of $40,345.95.
The lender, Gregory Milligan, in his capacity as court-appointed
receiver for Pride of Austin High Yield Fund 1, LLC, was granted
replacement liens on all post-petition cash collateral and
post-petition property of Milan, to the same extent and with the
same validity and priority as its pre-bankruptcy liens.
In addition, the lender is entitled to a superpriority
administrative expense claim.
A final hearing is scheduled for April 22, with objections due by
April 15.
About Milan Sai Joint Venture
Milan Sai Joint Venture, LLC operates in the traveler accommodation
industry.
Milan Sai Joint Venture sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 24-33560) on
November 4, 2024, with up to $10 million in both assets and
liabilities. Sunil Kumar Patel, managing member, signed the
petition.
Judge Michelle V. Larson oversees the case.
The Debtor is represented by:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer Attorney, PLLC
Tell: 972-503-4033
Email: joyce@joycelindauer.com
MITCHELL ROCK: Seeks to Hire Spain & Gillon as Bankruptcy Counsel
-----------------------------------------------------------------
Mitchell Rock, Inc. asked the U.S. Bankruptcy Court for the
Northern District of Alabama to employ Spain & Gillon, LLC as
counsel.
The firm will provide these services:
(a) give the Debtor legal advice with respect to its duties in
either the continued operation of its business and management of
its assets or sale thereof;
(b) take the necessary action required to reject or accept the
executory contracts of the Debtor;
(c) prepare on behalf of the Debtor necessary legal
documents;
(d) perform any and all legal services on behalf of the Debtor
arising out of or connected with the bankruptcy case; and
(e) perform any and all other legal services for the Debtor.
The firm's counsel and staff will be paid at these hourly rates:
Fred Garfield, Attorney $400
Paralegal $100
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $17,500.
Mr. Garfield 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:
Frederick M. Garfield, Esq.
Spain & Gillon, LLC
505 20th Street North, Suite 1200
Birmingham, AL 35203
Telephone: (205) 328-4100
Facsimile: (205) 324-8866
Email: sleara@spain-gillon.com
About Mitchell Rock, Inc.
Mitchell Rock, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 25-00701-TOM11) on March
7, 2025. In the petition signed by Chad Anthony Mitchell, owner,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Tamara O. Mitchell oversees the case.
Frederick M. Garfield, Esq., at Spain & Gillon, LLC, represents the
Debtor as legal counsel.
MITNICK PARENT: Fitch Alters Outlook on 'B' LongTerm IDR to Neg.
----------------------------------------------------------------
Fitch Ratings has affirmed Mitnick Parent, L.P.'s and Mitnick
Corporate Purchaser, Inc.'s (collectively dba Veracode, Inc.)
Long-Term Issuer Default Ratings (IDRs) at 'B'. The Rating Outlook
has been revised to Negative from Stable. In addition, Fitch has
affirmed Veracode's $75 million super priority secured RCF at 'BB'
with a Recovery Rating of 'RR1'. Fitch has also affirmed the
company's $815 million first lien secured term loan at 'B+'/'RR3'.
Mitnick Corporate Purchaser, Inc. is the issuer of the credit
facilities.
The Negative Outlook reflects Veracode's weaker-than-expected
revenue and FCF growth trends in recent years, driven by retention
rates below historical levels, which have led to weakened near-term
credit metrics. However, cost-cutting efforts have supported margin
levels, and the company remains strong in the application security
testing and risk management industry with high recurring revenues.
Key Rating Drivers
Elevated Financial Leverage: Fitch anticipates Veracode's
(CFO-capex)/debt to be negative for fiscal 2025 due to competitive
pressures on revenues, while gross leverage is expected to be
around 7.3x in fiscal 2025, with both metrics improving modestly
through fiscal 2028, driven by EBITDA stabilization and mandatory
debt amortization. Given the scale and the private equity ownership
of the company, Fitch believes Veracode is likely to optimize
return on equity (ROE) through acquisitions to accelerate growth or
through dividends while maintaining some level of financial
leverage.
Near-term Weak Financial Flexibility: Veracode's financial
flexibility has deteriorated over the past two years due to
weakening FCF, which is projected to be negative in fiscal 2025.
The company's cash is anticipated to be approximately $11 million
by fiscal 2025, while the revolver balance is expected to remain
around $13 million.
Fitch forecasts an improvement in Veracode's FCF, turning modestly
positive in fiscal 2026 due to stabilizing margins, flat revenue
growth, and slightly more favorable interest costs and capital
intensity. However, the cash position will likely remain low
compared to historical levels as Fitch expects the company to repay
its revolver over the next year. Additionally, Fitch projects
Veracode's EBITDA interest coverage to drop below 1.5x in fiscal
2025, with modest recovery expected in fiscal 2026.
Secular Tailwinds Supporting Growth: While the application security
industry may face near-term pressures, Veracode should benefit from
secular growth opportunities over the medium to long term. The
Traditional Application Security (AppSec) market is projected to
grow modestly, around 6% CAGR through 2030, according to various
market sources). In contrast, AI Security is expected to expand
robustly at around 30% CAGR, and App Risk Management at around 20%
CAGR. The convergence of AppSec with Cloud Security highlights the
shift towards cloud-native applications. Veracode is focused on
expanding its risk-centric approaches and AI innovations to enhance
security solutions.
Market Penetration Catalyst for Growth: Fitch believes the
application-security testing market will grow due to increased
awareness that rising network and device complexity makes
traditional network-centric solutions insufficient. Although
reducing software application vulnerabilities is widely recognized
to be an effective way to address information security,
organizations often struggle to balance development time and
resources with security best practices. Continuing market education
and regulatory enforcements are increasing demand for greater
emphasis on application security.
Leader in Niche Subsegment: Application security testing and risk
management is a niche market with a few leading suppliers,
including Veracode, Synopsys, Inc., Checkmarx Ltd, and WhiteHat
Security, Inc. Veracode's developed its solution as a cloud-based
software-as-a-service that supports easy scalability and
implementation. While the industry consists of numerous viable
competing products, Fitch expects customer retention to remain
high, as these solutions become standard tools within customers'
software-development workflow.
Diversified Customer Base: Veracode serves approximately 2,600
customers in the enterprise and midmarket segments. As of fiscal
2024, no single customer accounted for more than 10% of Veracode's
revenue or accounts receivable. The company also has a diverse
cross-section of industries served that is representative of
industry verticals that are particularly sensitive to information
security, such as financial services. Fitch believes the diverse
set of customers and industry verticals should reduce idiosyncratic
risks that may arise from particular customers or industries.
Narrow Product Focus: Although Veracode is strategically expanding
beyond its core application security testing segment, this area
still constitutes a significant portion of its revenue. While it
offers growth potential, this narrow focus may expose the company
to risks from the evolving cybersecurity industry, such as
technology disruptions. The segment's growth depends on increased
adoption of application security testing by software development
organizations.
Peer Analysis
Veracode operates in the subsegment of application-security testing
within the enterprise-security market that has traditionally
included network firewalls and end-point security. The broader
enterprise-security market has been growing, supported by greater
awareness around security breaches and the increasing complexity of
IT networks and applications. The application security segment also
benefits from industry secular growth trends. Within the
application-security testing subsegment, Veracode is perceived as
one of the leaders.
Within the broader enterprise security market, peers include Gen
Digital Inc. (BB+/Negative). Veracode has smaller revenue scale and
lower EBITDA margins than Gen Digital Inc. Veracode also has
significantly higher gross leverage. Fitch also compares Veracode
with Synopsys, Inc., a direct peer to Veracode. Synopsys has a
greater revenue diversity and scale as it also has products beyond
application security.
Key Assumptions
- Organic revenue growth remains flat YoY;
- EBITDA margins remaining in the 40%-42% range;
- Capex as a percentage of revenues remaining in the
low-to-mid-single digits;
- Debt repayment limited to mandatory amortization and repayment of
the RCF through the forecast.
Recovery Analysis
Recovery Analysis
- The recovery analysis assumes that Veracode would be reorganized
as a going concern in bankruptcy rather than liquidated;
- Fitch has assumed a 10% administrative claim.
Going-Concern (GC) Approach
- In the event of distress, Fitch assumes Veracode would suffer
from greater customer churn and margin compression on lower revenue
scale. Veracode's GC EBITDA is assumed to be $82 million,
approximately 26% below fiscal 2025 EBITDA of $111 million. Revenue
growth has been weak in recent years, due to retention rates below
historic levels. However, EBITDA margins have improved as a result
of cost-cutting efforts.
- The GC EBITDA estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level upon which Fitch bases the
enterprise valuation (EV).
An EV multiple of 6.5x EBITDA is applied to the GC EBITDA to
calculate a post-reorganization EV. The choice of this multiple
considered the following factors:
- The historical bankruptcy case study exit multiples for
technology peer companies ranged from 2.6x-10.8x;
- Of these companies, only three were in the software sector: Allen
Systems Group, Inc., Avaya, Inc., and Aspect Software Parent, Inc.,
which received recovery multiples of 8.4x, 8.1x, and 5.5x,
respectively.
- Veracode's public peers continue to trade at very high
valuations, between 23x and 44x, due to the recurring revenue
characteristics and mission-critical nature of the business
models;
- Veracode has historically benefitted from generally high revenue
retention levels, although this has been weaker in recent years;
- Fitch arrives at an EV of $533 million. After applying the 10%
administrative claim, adjusted EV of $480 million is available for
claims by creditors. This results in a 'RR3' Recovery Rating for
Veracode's first-lien term loan and an RR1 for its super-priority
RCF.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's expectation of EBITDA leverage sustaining above 7.5x;
- (CFO-capex)/debt ratio sustaining below 3%;
- EBITDA Interest coverage sustaining below 1.5x;
- Sustained decline in organic revenue as a result of weaker
competitive position.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Stabilization of the rating dependent on stabilization of revenue
and EBITDA, along with a return to positive (CFO-capex)/debt and
EBITDA interest coverage above 1.5x;
- Fitch's expectation of EBITDA leverage sustaining below 5.5x;
- (CFO-capex)/debt ratio sustaining near 7.5%;
- EBITDA interest coverage sustaining above 2.0x;
- Organic revenue growth sustaining above the high single digits.
Liquidity and Debt Structure
Fitch projects that Veracode's liquidity will be adequate. While
cash is currently relatively low compared to historical levels,
Fitch anticipates that liquidity will be supported going forward by
a return to positive FCF generation in fiscal 2026 and $61 million
availability under its $75 million super senior RCF ($13.6 million
drawn as of December 2024). Fitch expects Veracode's cash flow to
be supported by normalized EBITDA margins near the 40% range.
Veracode has $815 million of secured first-lien debt due 2029.
Given the recurring revenue nature of the business, limited
maturities over the rating horizon and adequate liquidity, Fitch
believes Veracode will be able to make its required debt payments.
Issuer Profile
Veracode provides application security solutions delivered through
a cloud-based platform, along with ancillary and related services.
It helps customers address the acute threat posed by hackers
targeting vulnerabilities to gain control over applications and
access critical data.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Mitnick Corporate
Purchaser, Inc. LT IDR B Affirmed B
senior secured LT B+ Affirmed RR3 B+
super senior LT BB Affirmed RR1 BB
Mitnick Parent, L.P. LT IDR B Affirmed B
MLN US: Seeks Court Approval to Hire KPMG LLP as Tax Consultant
---------------------------------------------------------------
MLN US HoldCo, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ KPMG
LLP as tax consultant.
The firm will provide these services:
(a) Transaction Tax Compliance Services:
(i) prepare state and local transaction tax returns and
supporting schedules for the entities and jurisdictions identified
in the Transaction Tax Engagement Letter;
(ii) engage in preliminary engagement planning activities
related to the tax returns specified above for the immediately
succeeding tax year;
(iii) prepare tax returns for any state or local
jurisdictions and additional majority owned legal entities not
identified in the Transaction Tax Engagement Letter; and
(iv) at the request of the Debtors, respond to routine
correspondence received from tax authorities associated with the
tax returns prepared by KPMG.
(b) Business License Services:
(i) prepare state and local business license and
registration forms and supporting schedules for the entities and
jurisdictions identified in the Transaction Tax Engagement Letter;
(ii) prepare Forms for any state or local jurisdictions
and additional legal entities not identified in the Transaction Tax
Engagement Letter that the Debtors approve in writing;
(iii) as requested by the Debtors, respond to routine
correspondence received from tax authorities associated with the
Forms prepared by KPMG; and
(iv) provide additional tax services as needed to assist
the Debtors in determining the proper tax treatment of certain
matters to be reported on the tax returns KPMG was engaged to
prepare;
(c) Restructuring Transaction Services:
(i) analyze U.S. federal, state, local, and
international tax implications of the Debtors' potential
restructuring of the debt and/or capital structure;
(ii) at the Debtors request, provide information to
assist the Debtors by identifying required business licenses.
Services.
The firm's professionals will be paid at these hourly rate:
Partners $1,015 - $1,615
Managing Directors $991 - $1,437
Directors/Senior Managers $924 - $1,233
Managers $718 - $1,122
Senior Associates $522 - $850
Associates $389 - $519
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer in the
amount of $125,000 from the Debtor.
Olayinka Kukoyi, CPA, a partner at KPMG, 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:
Olayinka Kukoyi, CPA
KPMG LLC
17802 IH-10, Suite 101
San Antonio, TX 78257
Telephone: (210) 227-9272
Facsimile: (210) 224-0126
About MLN US Holdco
The Debtors and their non-debtor affiliates are a global provider
of business telecommunication solutions, offering on-premise,
cloud, and hybrid services to help organizations of all sizes
connect and collaborate reliably. They have expanded their
capabilities and offerings through strategic acquisitions and
partnerships, enhancing its portfolio of software, hardware, and
services. They serve a wide range of industries, delivering
flexible solutions to meet the needs of diverse customers
worldwide.
MLN US Holdco, LLC and its affiliates filed their Chapter 11
petitions (Bankr. S.D. Tex. Lead Case No. 25-90090) on March 9,
2025, listing up to $10 billion in both consolidated assets and
liabilities. Janine Yetter, authorized signatory, signed the
petitions.
Judge Christopher M. Lopez oversees the case.
The Debtors tapped Porter Hedges LLP and Paul, Weiss, Rifkind,
Wharton & Garrison LLP as counsel; Goodmans LLP as Canadian
counsel; PJT Partners LP as investment banker and financial
advisor; FTI Consulting, Inc. as restructuring advisor; and KPMG
LLP as tax consultant. Stretto, Inc. is the Debtors' claims,
noticing and solicitation agent.
MODIVCARE INC: Stockholders OK Coliseum Transactions
----------------------------------------------------
As described in further detail in the Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 10,
2025 and the definitive proxy statement filed with the Commission
on February 3, 2025, pursuant to the Purchase and Exchange
Agreement dated January 9, 2025 by and among ModivCare Inc. and the
investors Coliseum Capital Partners, L.P. and Blackwell Partners
LLC - Series A, the Investors agreed, subject to approval of the
Company's stockholders at the Special Meeting, to:
(i) purchase $30 million in aggregate principal amount of the
Company's 5.000%/10.000% Second Lien Senior Secured PIK Toggle
Notes due 2029 and
(ii) exchange $20.165 million in aggregate principal amount of
the Company's existing 5.000% Senior Notes due 2029 held by the
Investors for an equivalent principal amount of Second Lien Notes.
The Coliseum Stockholders own more than 15% of the outstanding
voting stock of the Company and may therefore be deemed
collectively to be an "interested stockholder" (as defined in
Section 203 of the Delaware General Corporation Law) of the Company
with respect to the Coliseum Transactions.
First Supplemental Indenture
As previously disclosed by the Company in a Current Report on Form
8-K filed by the Company with the Commission on March 11, 2025, on
March 7, the Company issued $251 million of Second Lien Notes
pursuant to an indenture, dated as of March 7, 2025, among the
Company, the guarantors party thereto and Ankura Trust Company,
LLC, as trustee and notes collateral agent. On March 14, 2025, the
Company, the Guarantors, the Trustee and the Notes Collateral Agent
entered into a supplemental indenture to the Second Lien Notes
Indenture, pursuant to which the Company issued $50.165 million of
Second Lien Notes to the Investors.
On March 3, 2025, the Company convened a special meeting of
stockholders, which was adjourned, without commencing any business,
and reconvened on March 13, 2025. The Special Meeting was held for
the following purposes:
1. To approve the Coliseum Transactions with the Investors
pursuant to Section 203 of the DGCL.
2. To approve the adjournment of the Special Meeting, if
necessary, to continue to solicit votes in favor of the Coliseum
Transactions Proposal.
The Coliseum Transactions Proposal was approved by the requisite
vote of the Company's stockholders.
As a sufficient number of shares of the Company's common stock were
voted in favor of the Coliseum Transactions Proposal, the
Adjournment Proposal was rendered moot and was not presented at the
Special Meeting.
About ModivCare
ModivCare Inc. is a technology-enabled healthcare services company
that provides a suite of integrated supportive care solutions for
public and private payors and their members.
At December 31, 2024, ModivCare had 1,654,332,000 in total assets,
1,692,806,000 in total liabilities, and (38,474,000 in total
stockholders' deficit.
* * *
S&P Global Ratings lowered its issuer credit rating on ModivCare
Inc. to 'CCC+' from 'B-'. The outlook is negative.
MOHEGAN TRIBAL: Fitch Affirms 'B' IDR, Outlook Stable
-----------------------------------------------------
Fitch Ratings has affirmed the 'B' Issuer Default Ratings (IDRs) of
Mohegan Tribal Gaming Authority and MS Digital Entertainment
Holdings, LLC (collectively, Mohegan) with a Stable Outlook. Fitch
has also affirmed the proposed first lien senior secured revolver
and notes at 'BB-' with a Recovery Rating of 'RR2'. Fitch has
downgraded the proposed second lien notes to 'B-'/'RR5' from
'B'/'RR4'. Fitch has affirmed Mohegan's existing unsecured notes at
'CCC+'/'RR6'.
The downgrade of the second lien notes reflects updates to the
proposed transaction since Fitch assigned the expected ratings on
March 18, 2025. These changes increased borrowings for the proposed
first lien and second lien notes, resulting in a lower Recovery
Rating for the second lien notes.
The ratings reflect Mohegan's restricted group EBITDA leverage of
5.0x-5.5x, Mohegan Sun's leading market position, growing digital
results, and positive FCF generation. The Stable Outlook reflects
moderate industry growth, positive FCF, and debt capital market
access.
Key Rating Drivers
Korea Term Loan Acceleration: On Feb. 18, 2025, Mohegan announced
the acceleration of the Korea term loan due to covenant breaches.
Bain Capital indicated that lenders are assuming control of the
Inspire casino resort in South Korea. However, Fitch expects
limited impact on the restricted group, as there are no cross
defaults. Mohegan may need to provide up to $100 million to the
Korean subsidiary's senior credit facility holders if principal,
interest and other payments are missed.
Mohegan's 2024 annual financial statements included going-concern
language about financing the restricted group's senior secured
credit facility and guaranteed credit facility, due in late 2025,
and refinancing the Korea credit facility, also due in November
2025. The Korean term loan default resulted from unmet facility
covenants. The proposed financing transaction is expected to
resolve the restricted group debt. Mohegan is no longer a part of
the Korea credit facility after the term loan acceleration.
Stable Restricted Group FCF: The restricted group benefits from
Mohegan Sun's scale and market leadership in Connecticut, stable
cash flow its Pennsylvania property, management fees and
distributions from Niagara and Korean operations, and growing
digital business. Risks include new gaming licenses in lower New
York and a potential tribal gaming facility in Massachusetts.
However, development is expected to take several years, and
Mohegan's location offers partial insulation from these risks.
The Connecticut property showed stable EBITDA growth despite new
casinos and expansions in Rhode Island, Boston, and the New York
metro market. Maintenance and growth capex are expected to remain
low and interest payments should decline as the company reduces and
refinances debt at lower interest costs. Although the entity does
makes large distributions to the tribe, like other tribal gaming
entities, restricted FCF remains positive, supporting further debt
reduction.
Growing Digital Business: The financing transaction plans to
combine the Connecticut and Pennsylvania digital businesses into
the restricted group as co-borrowers and co-guarantors, offering
collateral support to lenders. The Connecticut digital business is
growing rapidly and is expected to significantly contribute to FCF
due to its expanding scale and minimal capex needs. Mohegan's
partnership with FanDuel, a leading online sports betting and
iGaming provider, provides support in increasing market share and
providing future growth.
Complex Capital Structure: Mohegan has attempted to diversified
beyond Connecticut into markets like Pennsylvania, South Korea,
Atlantic City, Las Vegas, and digital gaming, leading to a more
complex capital structure. Fitch anticipates a focus more on core
properties, capital structure simplification, and financial
discipline in future developments. Potential rating upgrades depend
on the refinancing second lien notes and reducing guarantees to
unrestricted entities.
Adequate Collateral Coverage: The secured restricted group debt
will be collateralized by the Pennsylvania asset, the new digital
subsidiary, and equity interests in the Niagara facilities. The
addition of the digital subsidiary infers potential additional
material asset coverage, assuming the Connecticut iGaming market
grows relative to other markets, such as New Jersey and Michigan.
Fitch believes the iGaming growth could partially cannibalize
Mohegan Sun casino revenues, but overall revenue is expected to
grow.
Peer Analysis
Mohegan's rating reflects the continued strong and steady
performance at its Connecticut and Pennsylvania properties. Similar
to other tribal gaming entities, the company enjoys a regulatory
restricted market but is vulnerable to casinos opening in adjacent
states. Tribal casinos typically maintain low leverage to ensure
distributions to tribal members but will apply excess cash to fund
nontribal casinos to diversify cash flow.
Mohegan's Connecticut property has withstood expanded gaming in
Rhode Island, Massachusetts, and New York over the last decade,
while applying excess cash to diversify operations.
Other tribal entities, such as the Seminole Tribe of Florida
(BBB/Stable) and The Morongo Band of Mission Indians (BBB-/Stable)
have access to a larger demographic market, similar regulatory
protection, and significantly lower EBITDA leverage. Seminole has
diversified under a separate subsidiary, while Morongo maintains
its one casino outside the greater Los Angeles market. PCI Gaming
Authority (BBB-/Negative) has employed a strategy similar to
Mohegan to use FCF from its regulatory tribal protected assets and
expand in other markets.
The expansion has created additional risks, but leverage is
materially lower than Mohegan, which provides for more credit
support. Bally's Corporation (B/Negative) is a public, non-tribal
entity, and a diversified regional operator with a domestic and UK
iGaming division. Consolidated leverage is high, and the company is
working through an ownership transaction that will likely increase
leverage.
Key Assumptions
- Restricted group revenues decline 1%-2% in 2025 and 2026 and
increase approximately 4% thereafter primarily reflecting growth in
the U.S. domestic digital segment;
- Restricted group total EBITDA margins of 19%-22% over the
forecast horizon reflecting the expectation of higher costs and
competitive pressures offset by digital growth;
- Capex is steady at $45 million-$55 million over the forecast
horizon, comprised of approximately $27 million of maintenance and
$18 million-$28 million of growth capex;
- Tribal distributions of approximately $75 million-$80 million per
year;
- Base interest rate assumptions reflect the current SOFR curve.
Since creditors cannot force a tribe into bankruptcy or claim
equity in the tribal operations, recovery typically takes the form
of a debt-for-debt exchange. The EBITDA multiple in the analysis
below is Fitch's assumption for a sustainable post-restructuring
leverage. Fitch as assumed a 10% administrative claim.
The going-concern EBITDA of $250 million reflects Fitch's
assumption that distress would likely occur from a combination of
weak customer gaming spend, increasing and sustained competitive
pressures, and poor operating performance. A 15% revenue decline
with 50% flow-through to EBITDA is reasonable in the context of a
regional tribal gaming operator, resulting in a going-concern
EBITDA that is roughly 30% below Mohegan's current EBITDA.
Fitch assigns a 5.0x EV/EBITDA multiple for Mohegan. Compared to
corporate gaming credit peers, which typically use a 6.0x-7.0x
multiple, the multiple captures the lack of a formal restructuring
framework and asset diversification.
The analysis assumes the secured debt includes a full draw on the
proposed Mohegan $250 million revolver and proposed secured debt
notes. This results in a 'RR1' recovery; however, Fitch's recovery
criteria caps Native American casinos at a 'RR2' recovery. The
second lien notes would have a 'RR5' recovery and the unsecured
notes would have a 'RR6' recovery.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA Leverage consistently above 6.0x for the restricted
group;
- EBITDAR Fixed Charge Coverage below 1.5x for both the
restricted;
- Reduction in restricted group liquidity due to excess tribal
distributions and/or investments in unrestricted entities.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA Leverage consistently below 5.0x for the restricted
group;
- EBITDAR Fixed Charge Coverage above 2.0 for both the restricted.
Liquidity and Debt Structure
Mohegan held $192.7 million of cash, which includes $74.0 million
at subsidiaries outside the U.S. The company had borrowing capacity
of $158.4 million on the secured credit facility and $34.8 million
on the Niagara credit facility as of Dec. 31, 2024. The secured
credit facility matures in November 2025 and the guaranteed credit
facility matures in October 2025; both facilities are expected to
be refinanced in the announced transaction.
Following the expected refinancing of the 8% senior secured notes
due 2026, the next maturity is not until 2027. Restricted group FCF
is expected to be positive over the forecast horizon.
Issuer Profile
The Mohegan Tribal Gaming Authority is an operator of casino
properties established by the Mohegan Tribe, a federally recognized
Native American tribe. Mohegan has casinos in Connecticut,
Pennsylvania and Ontario, Canada and a rapidly growing digital
gaming business.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
MS Digital
Entertainment
Holdings, LLC LT IDR B Affirmed B
senior secured LT BB- Affirmed RR2 BB-
Senior Secured
2nd Lien LT B- Downgrade RR5 B
senior
unsecured LT CCC+ Affirmed RR6 CCC+
Mohegan Tribal
Gaming Authority LT IDR B Affirmed B
senior
unsecured LT CCC+ Affirmed RR6 CCC+
senior secured LT BB- Affirmed RR2 BB-
Senior Secured
2nd Lien LT B- Downgrade RR5 B
MOM CA: Seeks $5MM Bankruptcy Loan From Specialty DIP
-----------------------------------------------------
MOM CA Investco LLC and affiliates ask the U.S. Bankruptcy Court
for the District of Delaware for authority to use cash collateral
and obtain post-petition financing.
The Debtor seeks to obtain secured debtor in possession financing
of no less than $3.5 million up to $5 million at 10% non-default
interest from Specialty DIP LLC.
The DIP Facility is due and payable on the earliest to occur of the
following:
1. 90 days after the Interim Order is entered, with a possible
90-day extension if no default has occurred and a motion has been
filed in court for the sale of the DIP Borrowers' assets to fully
repay the DIP loan.
2. The completion of a sale of all or most of the DIP Borrowers'
assets.
3. Acceleration or termination of the DIP Loan as outlined in
the DIP documents.
4. The substantial completion of a Chapter 11 plan that is
confirmed by the Bankruptcy Court.
If an Event of Default occurs, the DIP Lender can take the
following actions after giving 5 days notice:
1. Stop further advances under the DIP Loan.
2. Declare the full amount of the DIP Loan, including interest
and other owed amounts, due immediately.
3. Foreclose on the DIP Collateral.
4. Take any other action or exercise any other right or remedy
as permitted by the DIP Documents or applicable law.
The events that constitute an “Event of Default” include:
1. The DIP Borrowers failing to meet any important term,
condition, or obligation (including payments) in the DIP Documents,
Interim Order, or Final Order.
2. The DIP Loan becoming ineffective, being declared void by the
Bankruptcy Court, or the DIP Lender losing the DIP Liens granted by
the Interim or Final Order. And
3. The Bankruptcy Court granting a claim or lien to a third
party that is equal to or senior to the DIP Liens granted to the
DIP Lender, except for existing liens.
As of the Petition Date, the Debtors owe approximately $194 million
in senior secured institutional debt, secured by deeds of trust on
properties owned by their subsidiaries. Additional loans exist with
various lenders, including the Cantor Group and Coastline Santa
Monica Investments.
The Debtors' operations are heavily reliant on cash flow from their
assets, but as of the Petition Date, many properties are struggling
to generate sufficient income, and many are in default on their
mortgage payments. Many tenants have not been paying rent.
To secure the DIP Loan, the DIP Borrowers will grant the DIP Lender
the following:
1. A first priority security interest in all assets not already
pledged as collateral by other liens, including any proceeds,
products, or profits from these assets.
2. A junior security interest in assets that already have prior
liens, as well as any proceeds, products, or profits from those
assets.
The DIP Lender will be granted superpriority status up to $2.5
million of the Debt Proceeds, subject to the Carve-Out and the
Prepetition Senior Lenders Administrative Claims.
About MOM CA Investco LLC
MOM CA Investco LLC and affiliates constitute a real estate joint
venture comprised of a portfolio of commercial properties owned by
the Debtors. The properties that make up the portfolio include
hotels, an apartment complex, office buildings, other commercial
real estate, and individual homes used as luxury vacation rentals.
The Debtors have requested joint administration of their Chapter 11
cases under lead Case No. 25-10321 (Bankr. D. Del. in MOM CA
Investco LLC).
In the petition signed by Mark Shinderman, chief restructuring
officer, the Debor disclosed up to $500 million in both assets and
liabilities.
Judge Brendan Linehan Shannon oversees the case.
The Debtors tapped Buchalter, A Professional Corporation as lead
bankruptcy counsel; Potter Anderson & Corroon, LLP as bankruptcy
co-counsel; and FTI Consulting, Inc. as restructuring advisor.
Specialty DIP LLC, as lender, is represented by:
Justin R. Alberto, Esq.
Stuart Komrower, Esq.
Bryant P. Churbuck, Esq.
Cole Schotz, P.C.
500 Delaware Avenue,
Suite 1410
Wilmington, DE 19801
Telephone: (302) 652-3131
Facsimile: (302) 652-3117
jalberto@coleschotz.com
skomrower@coleschotz.com
bchurbuck@coleschotz.com
MONDEE HOLDINGS: Lenders to Return Bankrupt Company to Founder
--------------------------------------------------------------
Dorothy Ma of Bloomberg Law reports that lenders will assume
control of travel booking platform Mondee Holdings Inc. and sell a
majority stake to its founder and chairman after securing approval
from a U.S. bankruptcy judge.
Judge J. Kate Stickles ruled Thursday, March 27, 2025, that the
sale is in the best interests of the debtors and found no evidence
of collusion or fraud, despite objections raised during the prior
day’s hearing.
Secured lenders TCW Asset Management and Morgan Stanley, which
provided debtor-in-possession financing and served as the stalking
horse bidder, will acquire most of Mondee's assets for $191
million.
About Mondee Holdings Inc.
Mondee Holdings Inc. operates as a travel technology company in the
leisure travel markets in the United States and internationally.
Founded in 2011, Mondee Holdings acquired several major businesses,
including the largest air ticket consolidators in the United States
and Canada. Mondee Holdings are headquartered in Austin, Texas,
with additional offices in Canada, Brazil, Mexico, India, and
Thailand.
Mondee Holdings Inc. and several of its affiliates sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case
No. 25-10047) on Jan. 14, 2025. In the petitions signed by Mohsin
Meghji as chief restructuring officer, the Debtors reported total
assets of $362,804,000 and total debts of $358,688,000 as of June
30, 2024.
The Hon. J Kate Stickles presides over the cases.
The Debtors has tapped Young Conaway Stargatt & Taylor, LLP as
their Delaware bankruptcy counsel; and Fried, Frank, Harris,
Shriver & Jacobson LLP as their general bankruptcy counsel. M3
Advisory Partners, LP serves as restructuring advisor to the
Debtors; Piper Sandler & Co acts as investment banker; and Kroll
Restructuring Administration LLC acts as notice and claims agent.
MOUNTAIN SPORTS: Seeks to Hire Epiq as Solicitation Advisor
-----------------------------------------------------------
Mountain Sports, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Epiq
Corporate Restructuring, LLC as solicitation advisor.
The firm's services include:
(a) consulting with Debtors and their counsel, and the
Committee and its counsel to the extent a joint chapter 11 plan is
filed, regarding timing issues, voting and tabulation procedures,
and documents needed for the vote;
(b) reviewing voting-related sections of the voting procedures
motion, disclosure statement and ballots for procedural and timing
issues;
(c) assisting in obtaining information regarding members of
voting classes;
(d) coordinating distribution of solicitation documents' (e)
Responding to requests for plan of reorganization-related documents
from creditors;
(f) responding to telephone inquiries from creditors and
interested parties regarding the disclosure statement and the
voting procedures;
(g) receiving and examining all ballots and master ballots
cast by voting parties and date- stamping the originals of all such
ballots and master ballots upon receipt;
(h) tabulating all ballots and master ballots received prior
to the voting deadline in accordance with established procedures;
preparing an official ballot certification; and, if necessary,
testifying in support of the ballot tabulation results; and
(i) providing such other processing, solicitation, balloting
and other administrative services described in the Engagement
Agreement, but not included in the Section 156(c) Application, as
may be requested from time to time by the Debtors, the Court, the
Office of the Clerk of the Bankruptcy Court (the "Clerk"), or the
Committee to the extent that a joint chapter 11 plan is filed.
The Debtors previously provided Epiq a retainer in the amount of
$50,000 in connection with its services as Claims and Noticing
Agent. Epiq seeks to hold the retainer as security for payment of
Epiq’s final invoice for services rendered and expenses
incurred.
Kate Mailloux, a senior director at Epiq, 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:
Kate Mailloux
Epiq Corporate Restructuring LLC
777 3rd Ave., Fl. 12
New York, NY 10017
Telephone: (646) 282-2532
Email: kmailloux@epiqglobal.com
About Mountain Sports
Mountain Sports LLC, doing business as Bob's Stores, Eastern
Mountain Sports, EMS, and Sport Chalet, is a sporting goods, hobby
and musical instrument retailer.
Mountain Sports LLC and its affiliates sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
24-11385) on June 18, 2024. In the petitions filed by David Barton,
authorized representative, Mountain Sports disclosed between $10
million and $50 million in both assets and liabilities.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Goldstein & McClintock LLLP as counsel and
Silverman Consulting as financial advisor.
The Office of the United States Trustee for the District of
Delaware appointed an official committee of unsecured creditors.
The committee tapped Lowenstein Sandler, LLP as bankruptcy counsel
and Morris James LLP as Delaware counsel.
MOWBRAY WATERMAN: Court OKs Deal on Cash Collateral Access
----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Santa Ana Division, approved a stipulation between Mowbray Waterman
Property, LLC and Bank of the Sierra, a California corporation,
regarding the use of cash collateral.
Bank of the Sierra made a loan to the Debtor in 2020, secured by a
first-priority lien on real property located in San Bernardino,
Calif. As of the petition date, the Debtor owed the bank
approximately $2.6 million under the loan.
Under the stipulation, the parties agreed that the Debtor may use
cash collateral to cover business expenses during the bankruptcy
proceedings, based on an approved budget. Any expenditures must
adhere to a set variance limit, with a 15% variance per budget line
and a 10% variance for total disbursements. The Debtor must provide
regular reports to Bank of the Sierra on the use of the collateral.
The Debtor will continue making regular monthly payments of $15,154
to Bank of the Sierra but the bank reserves the right to accelerate
the debt. The Debtor acknowledges the validity of the bank's
security interest and the loan's enforceability.
Bank of the Sierra will receive additional protection in the form
of replacement liens on post-petition rents to safeguard against
any diminution in value of their prepetition liens.
A copy of the stipulation is available at
https://urlcurt.com/u?l=RpdPc4 from PacerMonitor.com.
About Mowbray Waterman Property
Mowbray Waterman Property, LLC is a real estate company based in
San Bernardino, Calif., specializing leasing of commercial and
residential properties.
Mowbray Waterman Property sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10930) on
February 19, 2025. In its petition, the Debtor reported between $1
million and $10 million in both assets and liabilities.
Judge Mark D. Houle handles the case.
The Debtor is represented by Lauren Gans, Esq., at Elkins Kalt
Weintraub Reuben Gartside, LLP.
MOWBRAY WATERMAN: Hires Elkins Kalt Weintraub as Counsel
--------------------------------------------------------
Mowbray Waterman Property, LLC seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Elkins Kalt Weintraub Reuben Gartside LLP as bankruptcy counsel.
The firm's services include:
(a) advising the Debtor with respect to its duties, powers, and
responsibilities, in the Debtor's bankruptcy case;
(b) ensuring that the Debtor complies with the Bankruptcy Code,
the Bankruptcy Rules, and the Local Bankruptcy Rules;
(c) advising the Debtor with respect to the various options
available for resolution of the bankruptcy case, including
liquidation of the Debtor's assets, and the filing of a plan of
reorganization;
(d) preparing on behalf of the Debtor all legal documents as may
be necessary;
(e) examining and advising the Debtor on claims and causes of
action that may belong to the Debtor's estate; and
(f) performing such other legal services as may be required by
the Debtor.
The hourly rate of Roye Zur, Esq. is $695, and the hourly rate for
Lauren N. Gans, Esq. is $575.
Prior to the Petition Date, EK received retainers totaling
$88,000.
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Roye Zur, Esq., a partner at Elkins Kalt Weintraub Reuben Gartside
LLP, disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Roye Zur, Esq.
Lauren N. Gans, Esq.
Elkins Kalt Weintraub Reuben Gartside LLP
10345 W. Olympic Blvd.
Los Angeles, California 90064
Tel: (310) 746-4400
Fax: (310) 746-4499
Email: rzur@elkinskalt.com
lgans@elkinskalt.com
About Mowbray Waterman Property, LLC
Mowbray Waterman Property LLC is a real estate company based in San
Bernardino, CA, specializing leasing of commercial and residential
properties.
Mowbray Waterman Property LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10930) on
February 19, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each .
Honorable Bankruptcy Judge Mark D. Houle handles the case.
The Debtor is represented by:
Lauren Gans, Esq.
ELKINS KALT WEINTRAUB REUBEN GARTSIDE LLP
10345 W. Olympic Boulevard
Los Angeles, CA 90064
Tel: (310) 746-4484
Fax: (310) 746-4499
Email: LGans@elkinskalt.com
NEPHROS INC: Reports $74K Net Income for 2024
---------------------------------------------
Nephros, Inc., filed a Form 10-K with the with the Securities and
Exchange Commission disclosing net income of $74,000 over total net
revenues of $14,162,000 for the year ended December 31, 2024,
compared to a net loss of $1,575,000 over total net revenues of
$14,238,000 for the year ended December 31, 2023.
The Company also disclosed $8,298,000 in total assets, $2,625,000
in total liabilities, and $8,585,000 in total stockholders' equity
at December 31, 2024.
In July 2018, the Company formed a subsidiary, Specialty Renal
Products, Inc. to drive the development of its second-generation
hemodiafiltration system and other products focused on improving
therapies for patients with renal disease. After SRP's formation,
the Company assigned to SRP all of the Company's rights to three
patents relating to the Company's hemodiafiltration technology,
which were carried at zero book value. On March 9, 2023, the SRP
Stockholders approved a plan of dissolution to wind down SRP's
operations, liquidate SRP's remaining assets and dissolve SRP, and
SRP filed a certificate of dissolution with the State of Delaware
on April 13, 2023. As a result of the SRP Stockholders' approval of
the plan of dissolution and provisions therein and after satisfying
all of SRP's liabilities, there are no assets available for
distribution to the holders of any of SRP's capital stock,
including its Series A Preferred Stock. As such, the value recorded
to non-controlling interest was written to zero and the impact
reclassified to the Company's additional paid-in capital as the
Company retained control of SRP.
In connection with SRP's plan of dissolution and pursuant to an
agreement between the Company and SRP entered into on May 24, 2023,
SRP assigned substantially all of its remaining assets to the
Company in satisfaction of the entire loan balance. Accordingly, as
of December 31, 2024, there was no outstanding balance of this
loan.
Although the Company generated net income for the year ended
December 31, 2024, it had negative cash flow from operations of
approximately $500,000 for the same period. The Company's
operations have consumed substantial amounts of cash since
inception, generating an accumulated deficit of $144.3 million as
of December 31, 2024. Additionally, the Company cannot be certain
that it will be able to generate a sufficient amount of product
revenue to maintain profitability on an ongoing basis.
The Company continues to focus on growth in sales and managing
tight expenses with the goal of returning to cash flow positive
from operations. The Company believes that the tight focus on
expenses and its current cash balances are sufficient to fund its
current operating plan through at least the next 12 months from the
date of issuance of the accompanying condensed consolidated
financial statements. However, if the Company's operating results
do not meet its expectations, the Company may need to further
reduce discretionary expenditures such as headcount, R&D projects,
and other variable costs.
A full-text copy of the Form 10-K is available at
https://tinyurl.com/mrxhpext
About Nephros
South Orange, New Jersey-based Nephros, Inc. --
http://www.nephros.com/-- provides innovative water filtration
products and services, along with water-quality education, as part
of an integrated approach to water safety.
Nephros, Inc., reported a net loss of $1.57 million in 2023, a net
loss of $7.11 million in 2022, a net loss of $3.87 million in 2021,
a net loss of $4.53 million in 2020, a net loss of $3.18 million in
2019, and a net loss of $3.32 million for the year ended Dec. 31,
2018.
NEW JERSEY: Hires Elementary Business as Accounting Consultant
--------------------------------------------------------------
New Jersey Orthopaedic Institute, LLC and its affiliates seek
approval from the U.S. Bankruptcy Court for the District of New
Jersey to employ Elementary Business Inc. as accounting
consultant.
The firm will provide these services:
(a) prepare 13 week cash flow analyses;
(b) prepare the Debtors' monthly operating reports; and
(c) draft financial projections.
The firm will be paid at an hourly rate of $350.
The firm disclosed in a court filing that it is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Elementary Business Inc.
Telephone: (940) 808-9451
Email: neil@elementarybusiness.com
About New Jersey Orthopaedic Institute
New Jersey Orthopaedic Institute LLC provides specialized care in
orthopaedics and sports medicine, offering cutting-edge treatments
to patients of all ages. The institute serves a diverse range of
patients, including athletes and community members, and is the team
physician for several local high schools and universities. NJOI
specializes in a wide range of orthopedic procedures, including
joint replacements for the shoulder, hip, and knee, as well as the
treatment of complex orthopedic trauma and sports medicine
conditions affecting the shoulder, elbow, wrist, hand, hip, knee,
ankle, and foot. With six locations and a multilingual staff, NJOI
focuses on education and patient-centered care to improve quality
of life and help patients return to daily activities.
New Jersey Orthopaedic Institute LLC sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. N.J. Case No. 25-11370) on
February 10, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge John K. Sherwood handles the case.
Stephen B. Ravin, Esq., at Saul Ewing LLP serves as the Debtor's
counsel.
NEWELL BRANDS: Egan-Jones Retains B+ Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on March 13, 2025, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Newell Brands, Inc. EJR also withdrew its rating on
commercial paper issued by the Company.
Headquartered in Atlanta, Georgia, Newell Brands, Inc. retails
consumer products.
NGL ENERGY: S&P Affirms 'B' Issuer Credit Rating on Asset Sale Plan
-------------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on NGL
Energy Partners L.P. S&P also affirmed the 'B+' issue-level rating
on the senior secured term loan B and senior secured notes.
S&P said, "Our '2' recovery rating on the company's debt is
unchanged and indicates our expectation for substantial (70%-90%;
rounded estimate: 70%) recovery in the event of default.
"The stable outlook reflects our expectation that following the
noncore asset sales adjusted debt to EBITDA will be 5.5x-5.7x in
fiscal 2026, and remain below 6x in fiscal 2027. We anticipate less
earnings volatility as the company reduces its exposure to
commodity prices.
"We affirmed our 'B' issuer credit rating on NGL Energy. Despite
underperformance in fiscal 2025 resulting from lower volumes on the
Grand Mesa pipeline and losses in the biodiesel marketing business,
we view the company's recent asset sale announcement as credit
positive. The exit from wholesale propane and biodiesel operations
should help reduce EBITDA volatility and lower seasonal working
capital needs. The company is continuing to focus on its water
solutions segment, which provides more stable cash flows backed by
fixed-fee contracts. While NGL Energy has lessened its commodity
price exposure it does have volumetric risk through acreage
dedication contracts. However, we believe the shift in business mix
will support its deleveraging and credit profile.
"We expect asset sales to reduce asset-backed revolving credit
facility (ABL) utilization and cash flow volatility. NGL Energy's
recent announcement to divest 17 NGL terminals, including the Green
Bay, Wis., terminal, and the exit of its biodiesel and wholesale
propane businesses is a constructive development in our view, with
expected total proceeds of $95 million. We anticipate these
transactions to reduce EBITDA seasonality and improve cash flow
stability by lowering working capital investments that historically
amounted to up to $100 million during peak inventory builds. The
sale of underperforming assets also reduces volatility in
segment-level EBITDA, particularly within the liquids business, and
supports NGL Energy's stated strategy to simplify its portfolio and
focus on more stable midstream operations. We expect the company to
use proceeds from these divestitures to reduce borrowings under its
asset-based facility."
NGL Energy, a diversified midstream energy company, announced it
plans to exit the wholesale propane business and biodiesel
marketing business and sell related assets. S&P said, "We expect
the asset sale to reduce NGL Energy's EBITDA volatility that stems
from commodity price exposure and lower its seasonal working
capital needs. We anticipate these transactions to be credit
positive to the company in the long term."
The water solutions business is NGL Energy's core EBITDA
contributor. The water solutions segment contributes over 80% of
consolidated EBITDA. This business is anchored in the Delaware
Basin where drilling and completion activity remains strong. This
segment benefits from long-term, fixed fee contracts backed by
acreage dedication and MVCs. The fixed fee contract structure
underpins cash flow visibility and limits NGL Energy's exposure to
commodity price fluctuations. With additional operations in the DJ
and Eagle Ford Basins and new volumes tied to the LEX II pipeline
S&P expects the water solution business to continue to generate
stable cash flows. However, the company remains exposed to
volumetric risk stemming from acreage dedication contracts that
generate revenue based on the crude production in NGL Energy's area
of operations. Also, despite the asset sales, NGL Energy retains
some exposure to commodity-driven volatility though crude oil
logistics and liquids assets. The liquids logistics segment now
accounts for less than 6% of EBITDA following the asset sales but
remaining operations including the Chesapeake butane terminal and
propane pipeline in Michigan still expose the company to seasonal
demand and price risk.
S&P said, "We expect NGL Energy's credit metrics to improve
following its relative underperformance in 2025. We previously
anticipated the company to generate adjusted EBITDA of $700 million
to $720 million and adjusted debt to EBITDA of about 5x in fiscal
2025 (ending in March 2025). However, during the year NGL Energy
underperformed our expectations due to weakness in the biodiesel
business which generated a $10 million year-to-date loss.
Additionally, lower throughput volumes in the Grand Mesa Pipeline
limited growth in the crude oil logistics segment. While the water
solutions segment continued to grow demonstrating a 12% increase
year over year, it was not sufficient to offset the drag from other
segments. We now anticipate NGL Energy to generate adjusted EBITDA
of about $670 million in fiscal 2025 and leverage of about 5.5x.
Our base case assumes the company to maintain adjusted leverage at
5.5x-5.7x in fiscals 2026 and 2027.
"Capital structure improvement supports rating stability. NGL
Energy made progress in addressing its capital structure in fiscal
2025 by fully repaying accrued distributions on its class B, C, and
D preferred equity units, which we previously treated as debt-like.
We expect the company to continue servicing preferred
distributions. The $551 million in class D preferred units includes
a put option exercisable in July 2028, and we anticipate the
company will fund repayment through a compilation of internal cash
and credit facility. For our analytical adjustments, we assign
intermediate equity contents to the class B and C preferred units
and include 50% of their principal in the adjusted debt.
The stable outlook reflects our expectation that NGL Energy's
EBITDA volatility will lessen following the sale of its wholesale
propane and biodiesel businesses which exposed its liquids
logistics segment to commodity price fluctuations. While the asset
sales and a shift toward the water solutions business should
stabilize earnings, we anticipate some EBITDA volatility during the
next year because of lower crude oil prices. We expect adjusted
debt to EBITDA to be 5.5x-5.7x in fiscal year 2026 and remain below
6x in fiscal year 2027 if the noncore asset divestitures enhance
EBITDA as anticipated."
S&P could lower the rating on NGL Energy if adjusted debt to EBITDA
remains at or above 6.5x over the next 12 months with no clear path
to deleveraging. This could occur if:
-- Commodity price volatility in the crude oil logistics and
liquids logistics segments continues to weigh on EBITDA without a
sufficient offset from water solutions.
-- Lower drilling activity on its dedicated acreage reduces crude
transportation volumes or water disposal services, further
pressuring cash flow and leverage metrics.
While unlikely during the next 12 months, S&P could take a positive
rating action if NGL Energy reduces leverage below 4.5x. This could
occur if an increase in crude oil production in the company's
dedicated acreage results in higher throughput volumes and EBITDA
in the water solutions business.
NIKOLA CORP: Plans to Delist From Nasdaq, Deregister With SEC
-------------------------------------------------------------
Nikola Corporation announced on March 24, 2025, its intention to
file a Form 25 Notification of Delisting with the Securities and
Exchange Commission on or about April 3, which will remove its
securities from listing and registration on Nasdaq. Nasdaq
previously suspended the trading of Nikola's common stock at the
opening of business on February 26, and notified Nikola that a Form
25 would be filed. However, as Nasdaq has not yet made the filing,
Nikola is doing so voluntarily to permit it to file a Form 15 to
deregister with the SEC.
Nikola previously announced on February 19, that Nikola and certain
of its domestic subsidiaries filed voluntary petitions for relief
under chapter 11 of Title 11 of the United States Code in the
United States Bankruptcy Court for the District of Delaware.
Once the Nasdaq delisting on Form 25 becomes effective, Nikola
intends to file a Form 15 to deregister with the SEC.
About Nikola Corp.
Nikola Corporation manufactures commercial vehicles. The Company
provides battery and hydrogen fuel-cell electric vehicles,
drivetrains, components, energy storage systems, fueling station
infrastructure, and other transportation solutions. Nikola serves
customers worldwide.
Nikola Corp. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 25-10258) on February 19, 2025. In
its petition, the Debtor reports estimated assets between $500
million and $1 billion, with liabilities ranging from $1 billion to
$10 billion.
Honorable Bankruptcy Judge Thomas M. Horan handles the case.
The Debtor is represented by M. Blake Cleary, Esq. at Potter
Anderson & Corroon LLP.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Nikola
Corp. and its affiliates.
NORTHERN OIL: Moody's Raises CFR to Ba3 & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Ratings upgraded Northern Oil and Gas, Inc.'s (NOG)
Corporate Family Rating to Ba3 from B1, Probability of Default
Rating to Ba3-PD from B1-PD, senior unsecured notes rating to B1
from B2 and changed the outlook to stable from positive. NOG's
SGL-2 Speculative Grade Liquidity (SGL) rating remains unchanged.
"Northern Oil and Gas' upgrade reflects its increased scale and
diversification through recent acquisitions, achieved while
maintaining solid credit metrics," said Amol Joshi, Moody's Ratings
Vice President and Senior Credit Officer.
RATINGS RATIONALE
The upgrade to Ba3 CFR follows NOG completing about $900 million of
acquisitions in 2024. While the company largely debt-funded these
acquisitions, the company enhanced its scale and diversification
while maintaining solid credit metrics. NOG's 2025 production
should exceed 130 thousand barrels of oil equivalent (boe) per day
on a 2-stream basis, and its exposure to prolific oil and gas
basins should support further growth.
NOG's Ba3 CFR reflects the company's moderate leverage, and its
enhanced scale with good basin and commodity diversification. The
company's legacy Williston Basin asset base is oil-weighted and
benefits its unleveraged cash margins and cash flow at higher oil
prices. The company has significantly increased its footprint in
the Permian Basin with the majority of its 2024 capital spending
focused in that basin. NOG also has exposure to the Appalachian
Basin and has recently acquired certain Uinta Basin assets. NOG has
an active and consistent hedging strategy and has hedged a
meaningful portion of its 2025-26 oil and gas production, reducing
volatility in its revenue and cash flow. Moody's expects NOG's
retained cash flow (RCF) to debt ratio to remain robust into 2026.
While NOG manages a well-diversified portfolio of non-operated
working interests in numerous producing assets, it relies on the
operating performance of its partners. The company continues to be
acquisitive, and NOG's growth strategy is focused on participating
in operator initiated wells and executing bolt-on acquisitions,
requiring a high degree of financial flexibility.
NOG's senior unsecured notes are rated B1, one notch below the
company's Ba3 CFR reflecting the priority claim of its borrowing
base senior secured credit facility that is secured by most of
NOG's assets.
NOG's SGL-2 rating reflects its good liquidity. At December 31, NOG
had $8.9 million of cash and $690 million of revolver borrowings.
The company's revolver has a borrowing base of $1.8 billion, with
an elected commitment of $1.5 billion. The revolver's financial
covenants include a maximum net debt to EBITDAX ratio of 3.5x (with
cash netting limited to $50 million), and a minimum current ratio
of 1x. The current ratio calculation allows certain adjustments and
the inclusion of unused amounts of the total bank commitments.
Moody's expects the company to maintain substantial headroom under
the financial covenants through mid-2026. NOG's next significant
debt maturity will be when its secured revolver matures in June
2027. Substantially all of the company's assets are pledged as
security under the credit facility, which limits the extent to
which asset sales can provide a source of additional liquidity.
NOG's stable outlook reflects the company's ability to grow
production and generate meaningful free cash flow, excluding
acquisitions, likely leading to stable to modestly improving
leverage metrics.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if NOG generates consistent free cash
flow including acquisitions, while balancing leverage and any
shareholder returns in line with actual results and cash flow, the
company strengthens its business profile by significantly enhancing
its scale with strong operators, it maintains conservative
financial policies, and sustains good credit metrics with its RCF
to debt maintained above 50%. The ratings could be downgraded if
production volumes materially decline, RCF to debt falls below 25%,
liquidity deteriorates significantly or the company borrows to fund
acquisitions or shareholder returns causing debt to grow materially
faster than cash flow.
Northern Oil and Gas, Inc., headquartered in Minnetonka, Minnesota,
is a publicly traded company that owns non-operated working
interests in oil and gas wells and acreage in the Williston Basin,
Permian Basin, Marcellus Shale and Uinta Basin.
The principal methodology used in these ratings was Independent
Exploration and Production published in December 2022.
NRG ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on March 17, 2025, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by NRG Energy, Inc. EJR also withdrew its rating on
commercial paper issued by the Company.
Headquartered in Houston, Texas, NRG Energy, Inc. owns and operates
a diverse portfolio of power-generating facilities primarily in the
United States.
NUTRACAP HOLDINGS: Committee Hires Jones & Walden as Counsel
------------------------------------------------------------
The official committee of unsecured creditors of Nutracap Holdings,
LLC seeks approval from the U.S. Bankruptcy Court for the Northern
District of Georgia to employ Jones & Walden LLC as counsel.
The firm will provide these services:
a. provide the Committee with legal advice concerning its
statutory powers and duties in connection with Debtor's Chapter 11
case;
b. assist the Committee in investigation of the acts, conduct,
assets, liabilities, and financial condition and affairs of the
Debtor and the operation of the Debtor's businesses;
c. participate in the formulation of a plan and analysis of
proposals by the Debtor or others in connection with formulation or
proposal of a plan;
d. advise and analyze any proposed disposition of assets of
the Debtor outside of a plan; and
e. perform such other legal services as may be required and in
the interest of the unsecured creditors of the estate.
The firm will be paid at these rates:
Attorneys $300 to $500 per hour
Paralegals $200 to $250 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Cameron M. McCord, Esq., a partner at Jones & Walden 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:
Cameron M. McCord, Esq.
Jones & Walden LLC
699 Piedmont Avenue, NE
Atlanta, GA 30308
Tel: (404) 564-9300
Email: cmccord@joneswalden.com
About Nutracap Holdings, LLC
Nutracap Holdings, LLC is a manufacturer of nutraceuticals and
dietary supplements in Norcross, Ga.
Nutracap Holdings sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-50430) on January 14,
2025, with up to $50 million in both assets and liabilities. Marcos
Fabio Lopes e Lima, chief executive officer of Nutracap Holdings,
signed the petition.
Judge Lisa Ritchey Craig oversees the case.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC,
represents the Debtor as legal counsel.
OAKS SENIOR: Seeks to Hire Brunetti Rougeau LLP as Counsel
----------------------------------------------------------
The Oaks Senior Living LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of California to employ Brunetti
Rougeau LLP to handle its Chapter 11 case.
The firm will be paid at these rates:
Gregory A. Rougeau $450 per hour
Kenneth A. Brunetti $450 per hour
Paralegals $150 per hour
The firm received a retainer in the amount of $5,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Gregory A. Rougeau, a partner at Brunetti Rougeau LLP, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Gregory A. Rougeau
Brunetti Rougeau LLP
235 Montgomery Street
Suite 830
San Francisco, CA 94104
Tel: (415) 992-8940
Fax: (415) 710-3406
Email: grougeau@brlawsf.com
About Oaks Senior Living LLC
On October 23, 2024, VentureSeniorLiving, LLC filed an Involuntary
Petition against the Debtor, The Oaks Senior Living LLC (Bankr.
N.D. Cal. Case No. 24-30791). The Debtor hires Brunetti Rougeau LLP
as counsel.
VentureSeniorLiving, LLC is represented by:
Bennett G. Young, Esq.
JEFFER MANGELS BUTLER & MITCHELL LLP
Two Embarcadero Center, Fifth Floor
San Francisco CA 94111-3813
Tel: (415) 398-8080
Email: byoung@jmbm.com
OCEAN BAY HOLDINGS: Seeks to Hire Brian W. Hofmeister as Counsel
----------------------------------------------------------------
Ocean Bay Holdings LLC seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to hire the Law Firm of Brian
W. Hofmeister, LLC, as its legal counsel.
The firm will provide all legal services necessary to achieve a
successful reorganization or sale of the Debtor's assets.
Brian Hofmeister, Esq., the attorney who will be handling the case,
charges an hourly fee of $550. His firm charges $250 per hour for
paralegal services.
Mr. Hofmeister disclosed in court filings that his firm is
"disinterested" as defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Brian W. Hofmeister, Esq.
Law Firm of Brian W. Hofmeister, LLC
3131 Princeton Pike
Building 5, Suite 110
Lawrenceville, NJ 08648
Telephone: (609) 890-1500
Facsimile: (609) 890-6961
Email: bwh@hofmeisterfirm.com
About Ocean Bay Holdings LLC
Ocean Bay Holdings LLC is a limited liability company.
Ocean Bay Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 25-12234) on March 4, 2025.
In its petition, the Debtor reports estimated assets up to $50,000
and estimated liabilities between $1 million and $10 million.
The Debtor is represented by Brian W. Hofmeister, Esq. at LAW FIRM
OF BRIAN W. HOFMEISTER, LLC.
OFFICE PROPERTIES: Inks $100M ATM Sales Agreement With Clear Street
-------------------------------------------------------------------
Office Properties Income Trust disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that it entered
into a sales agreement, or the sales agreement, with Clear Street
LLC, or the Agent, pursuant to which the Company may issue and
sell, in transactions that are deemed to be an "at the market
offering" as defined in Rule 415 under the Securities Act of 1933,
as amended, or the Securities Act, its common shares of beneficial
interest, $.01 par value per share, or common shares, having an
aggregate sales price of up to $100,000,000 from time to time
through or to the Agent.
Any sales of common shares under the sales agreement will be made
pursuant to our shelf registration statement on Form S-3 (File No.
333-265997), as amended, the prospectus contained therein filed
with the Securities and Exchange Commission, or the SEC, on
February 12, 2025 and a prospectus supplement related thereto filed
with the SEC on March 14, 2025, or a successor registration
statement, prospectus and prospectus supplement. The Agent may sell
the Company's common shares in transactions that are deemed to be
an "at the market offering" as defined in Rule 415 under the
Securities Act. The Agent will use commercially reasonable efforts
consistent with its normal trading and sales practices to sell
common shares pursuant to the sales agreement from time to time,
based upon instructions from the Company, including any price or
size limits or other customary parameters or conditions the Company
may impose.
Office Properties said, "We are not obligated to make any sales of
common shares under the sales agreement, and the Agent is not
obligated to buy or sell any shares under the sales agreement, and
no assurance can be given that we will sell any shares under the
sales agreement, or, if we do, as to the price or amount of common
shares that we will sell, or the dates on which any such sales will
take place. The offering of common shares pursuant to the sales
agreement will terminate upon the earliest of (a) the sale of all
common shares subject to the sales agreement and (b) the
termination by us or the Agent of the sales agreement pursuant to
its terms."
"We will pay to the Agent a cash commission equal to 3.0% of the
gross sales price of any common shares sold under the sales
agreement and have agreed to reimburse the Agent for certain
specified expenses. We and the Agent have also provided each other
with customary indemnification and contribution rights."
"We intend to use the net proceeds from sales of common shares for
general business purposes."
About Office Properties
Office Properties Income Trust is a REIT organized under Maryland
law. As of Dec. 31, 2023, its wholly owned properties were
comprised of 152 properties, and it had noncontrolling ownership
interests of 51% and 50% in two unconsolidated joint ventures that
owned three properties containing approximately 468,000 rentable
square feet. As of Dec. 31, 2023, the Company's properties are
located in 30 states and the District of Columbia and contain
approximately 20,541,000 rentable square feet. As of Dec. 31, 2023,
its properties were leased to 258 different tenants, with a
weighted average remaining lease term (based on annualized rental
income) of approximately 6.4 years. The U.S. government is its
largest tenant, representing approximately 19.5% of its annualized
rental income as of Dec. 31, 2023.
As of March 31, 2024, the Company had $4 billion in total assets,
$2.7 billion in total liabilities, and $1.3 billion in total
stockholders' equity.
* * *
In May 2024, OPI announced it was actively negotiating with its
existing debtholders to exchange four series of its currently
outstanding senior unsecured notes (worth $1.7 billion at face
value) for up to $610 million of new senior secured notes and
related guarantees, with priority given to the 2025 noteholders
($650 million outstanding). The exchange would result in
debtholders receiving below the par value of the existing notes.
The Troubled Company Reporter on February 11, 2025, reported that
S&P Global Ratings lowered its Company credit rating on Newton,
Mass.-based REIT Office Properties Income Trust (OPI) to 'CC' from
'CCC' and its issue-level ratings on its senior unsecured notes due
2026, 2027 and 2031, which are part of the proposed exchange, to
'CC' from 'CCC-'.
OMEGA THERAPEUTICS: Hires Morris Nichols Arsht as Legal Counsel
---------------------------------------------------------------
Omega Therapeutics, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Morris, Nichols, Arsht
& Tunnell LLP as bankruptcy counsel.
The firm will render these services:
a. perform all necessary services as the Debtor's bankruptcy
counsel, including, without limitation, providing the Debtor with
advice, representing the Debtor, and preparing necessary documents
on behalf of the Debtor in the areas of restructuring and
bankruptcy;
b. take all necessary actions to protect and preserve the
Debtor's estate during this Chapter 11 Case, including the
prosecution of actions by the Debtor, the defense of any actions
commenced against the Debtor, negotiations concerning litigation in
which the Debtor is involved and objecting to claims filed against
the estate;
c. prepare or coordinate preparation on behalf of the Debtor,
as debtor in possession, necessary motions, applications, answers,
orders, reports and papers in connection with the administration of
this Chapter 11 Case;
d. counsel the Debtor with regard to its rights and
obligations as debtor in possession;
e. coordinate with the Debtor's other professionals in
representing the Debtor in connection with this Chapter 11 Case;
and
f. perform all other necessary legal services.
The firm will be paid at these hourly rates:
Partners $1,005 to $1,895
Of Counsel $950 to $1,120
Associates $625 to $930
Paraprofessionals $260 to $435
The firm will seek reimbursement for reasonable out-of-pocket
expenses incurred.
Morris Nichols received an initial retainer in the amount of
$200,000 on Jan. 31, 2025, and a supplemental retainer in the
amount of $250,000 on Feb. 4, 2025.
Derek C. Abbott, a partner at Morris, Nichols, Arsht & Tunnell LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Derek C. Abbott, Esq.
Morris, Nichols, Arsht & Tunnell LLP
1201 North Market Street
Wilmington DE 19801
Tel: (302) 658-9200
E-mail: DAbbott@morrisnichols.com
About Omega Therapeutics
Omega Therapeutics Inc. is a biotechnology company in its
development stages, leading innovation in a novel approach to
leverage mRNA therapeutics as programmable epigenetic treatments
through its OMEGA Epigenomic Programming platform. The OMEGA
platform harnesses the power of epigenetics, the mechanism that
controls gene expression and every aspect of an organism's life
from cell genesis, growth, and differentiation to cell death. The
OMEGA platform enables control of fundamental epigenetic processes
to correct the root cause of disease by returning aberrant gene
expression to a normal range without altering native nucleic acid
sequences.
Omega Therapeutics Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-10211) on February 10,
2025. In its petition, the Debtor reports total assets as of Jan.
28, 2025 amounting to $137,529,941 and total debts as of Jan. 28,
2025 of $140,421,354.
Honorable Bankruptcy Judge Brendan Linehan Shannon handles the
case.
The Debtor is represented by Derek C. Abbott, Esq., Eric D.
Schwartz, Esq., Andrew R. Remming, Esq., Daniel B. Butz, Esq.,
Jonathan M. Weyand, Esq., and Luke Brzozowski, Esq., at Morris,
Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware.
The Debtor's restructuring advisor is Triple P RTS, LLC
The Debtor's investment banker is Triple P Securities, LLC.
The Debtor's special counsel is Latham & Watkins LLP.
The Debtor's claims agent & administrative advisor is Kroll
Restructuring Administration LLC.
OPE INMAR: Moody's Assigns 'B3' CFR, Outlook Positive
-----------------------------------------------------
Moody's Ratings assigned a B3 corporate family rating and a B3-PD
probability of default rating to OPE Inmar Holdings, Inc. (dba
Inmar). Moody's also affirmed Inmar, Inc.'s $150 million senior
secured first lien revolving credit facility expiring October 2029
and $1,070 million senior secured first lien term loan due October
2031 at B3. Moody's withdrew Inmar, Inc.'s B3 CFR and B3-PD PDR
ratings. The outlook for Inmar, Inc. is revised to positive from
stable. Moody's also assigned a positive outlook to OPE Inmar
Holdings, Inc. Inmar is a technology-enabled provider of services
including digital incentives, digital media, paper coupon
settlement, healthcare returns and technology.
The revision of the outlook to positive from stable reflects
Inmar's higher-than-expected revenue growth from new contract wins,
evidencing increased demand, in both the Martech and Healthcare
segments, leading us to expect steady improvements in credit
metrics, free cash flow and liquidity. Moody's expects debt-to-
EBITDA to improve to around 5.0x, inclusive of capitalized software
costs, through ongoing profit margin expansion and mandatory debt
repayment, and with free cash flow-to-debt in a mid-single
percentage range.
RATINGS RATIONALE
Inmar's B3 CFR considers its good scale and profitability as a
leading technology-enabled services provider for digital
incentives, digital media, coupon processing, healthcare product
returns management and technology solutions. Moody's projects
mid-single-digit annual organic revenue growth, driven by new
customer acquisitions and rising demand in the Martech and
Healthcare segments, and anticipate revenue will be around $900
million by the year end 2025. In January 2025, the company divested
its underperforming Product Lifecycle segment and allocated the net
proceeds of around $30 million, along with any future earnouts, to
the balance sheet for future business investments. While this
divestiture reduces the company's revenue and diversification, it
strengthens the credit profile by improving margins and
streamlining the business model, enabling a more focused growth
strategy. Moody's expects the company to enhance its high-teens
percentage range EBITA margin through this strategic shift towards
these higher-margin product segments. The credit profile further
benefits from Inmar's solid competitive position, extensive
customer base with long-tenured contracts, highly recurring and
predictable revenue streams, and favorable trends in digital
offerings and e-commerce and good liquidity.
The ratings are constrained by the company's high financial
leverage, with debt-to-EBITDA of 4.6x as of September 30, 2024.
Moody's anticipates modest leverage improvement to around 4.3x, or
around 5.3x after expensing capitalized software development costs,
over the next 12 to 18 months. Moody's also foresees potential
softness in media products due to uncertainty around a slowing US
economy; however, incentives and healthcare products could offset
any weakness. Furthermore, the company operates in a rapidly
changing digital environment that requires continuous technology
investments to maintain its competitive position and attract new
clients, thereby pressuring earnings and free cash flow. Inmar must
allocate approximately $44 million for capital expenditures,
including software development, which is necessary to support
offerings across all of Inmar's business segments.
All financial metrics cited are calculated based on Moody's
standard adjustments.
Moody's expects Inmar to maintain a good liquidity profile over the
next 12-15 months. Liquidity is primarily provided by an
unrestricted balance sheet cash of $60 million as of September 30,
2024, and Moody's anticipations for free cash flow-to-debt in a
mid-single-digit percentage range during 2025. The company also has
full availability under its $150 million revolving credit facility,
which expires in 2029. These sources provide ample liquidity to
service $10.7 million of required annual amortization payments
under the first lien term loan. There are no financial maintenance
covenants applicable to the term loan. Availability of the revolver
is subject to a springing maximum first lien net leverage ratio
that is triggered when revolver utilization exceeds 35%. Moody's do
not expect this covenant to be triggered in the near term and
believe Inmar will maintain good headroom under the financial
covenant.
The B3 senior secured first lien credit facility ratings are in
line with the B3 CFR and reflect their position as the vast
majority of debt in the capital structure. The borrower of the
credit facilities is Inmar, Inc. OPE Inmar Holdings, Inc.
guarantees the rated debt. The credit facility is secured by a
perfected first lien security interest in substantially all of
Inmar's assets, subject to certain permitted liens and other
exceptions.
The positive outlook reflects Moody's expectations that Inmar may
maintain its debt-to-EBITDA below 5.0x, net of capitalized software
costs, and continue to enhance its profitability through increased
contributions from its remaining business segments and cost
improvements in SG&A over the next 12-18 months. The outlook also
anticipates mid-single-digit revenue growth, driven by new customer
acquisitions and higher adoption rates of Inmar's tools, as well as
an improved liquidity profile, with free cash flow-to-debt expected
to be in a mid-single-digit percentage range. The outlook could be
revised to stable from positive if business performance weakens.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Inmar sustains good liquidity,
debt-to-EBITDA below 5.0x and free cash flow-to-debt in a high
single- digits percentage range.
The positive outlook indicates that the ratings are unlikely to be
downgraded in the near term. However, over the longer term, the
ratings could be downgraded if Inmar experiences a material
contraction in revenue or profitability due to customer losses, if
free cash flow generation weakens, or if liquidity deteriorates.
The ratings could also be downgraded if the company adopts more
aggressive financial policies that lead to debt-to-EBITDA remaining
above 7.0x.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Inmar, based in Winston-Salem, NC, is a provider of
technology-enabled services, offering robust solutions to
streamline workflows for retailers, manufacturers, pharmacies and
hospitals. These solutions include retail promotional management,
such as incentives and loyalty programs, and personalized media
tools. Healthcare solutions directed at the Pharmacy market
including product return and value recovery management, pharmacy
revenue cycle management tools, and pharmacy management SaaS
solutions to enable compliance and efficiency. OMERS Private Equity
is the primary owner of Inmar, with additional investments from
ABRY Partners, Inmar management, and other institutional entities.
OREGON TOOL: Moody's Affirms 'Caa3' CFR & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Ratings affirmed Oregon Tool, Inc.'s (Oregon Tool) Caa3
corporate family rating and Caa3-PD probability of default rating.
At the same time, Moody's appended a limited default designation
("/LD") to the PDR following the completion of a distressed
exchange. Concurrently, Moody's downgraded the facility rating on
the company's senior secured term loan B to Ca from Caa2 and
affirmed the Ca rating on the senior unsecured notes. Moody's
assigned B3 rating to the backed senior secured revolving credit
facility due October 2029, B3 to the new backed senior secured
first lien term loan due October 2029, Caa2 to the exchanged backed
senior secured second lien term loan due October 2029 and Caa3 to
the exchanged third lien senior secured notes due October 2029,
issued by Oregon Tool Lux LP ("New Opco"), a newly established
subsidiary wholly owned by Oregon Tool. Finally, Moody's withdrew
the Caa2 rating on the senior secured revolving credit facility due
2026 at Oregon Tool, which was replaced by the new backed senior
secured revolving credit facility due October 2029 at New Opco.
The outlook on Oregon Tool was changed to stable from negative. The
outlook on New Opco is stable.
The rating action reflects the completed two-step exchange of
Oregon Tool's existing senior secured term loan and its senior
unsecured notes into the exchanged second lien term loan and the
exchanged third lien notes issued by New Opco. New Opco also issued
about $155 million of new first lien term loan, which provided
additional liquidity and freed up availability under the
assed-based lending (ABL) revolver and the revolving credit
facility. In total, 99% of the existing senior secured term loan
lenders and about 57% of the existing senior unsecured note holders
participated in this transaction. The remaining outstanding senior
secured term loan and senior unsecured notes after the exchange are
in a subordinated position relative to the revolving credit
facility, the new first lien term loan, the exchanged second lien
term loan, and the exchanged third lien notes, which benefit from
additional collateral from foreign subsidiaries. Moody's views this
up-tiering transaction as a default and appended a "/LD"
designation to Oregon Tool's Caa3-PD PDR. Moody's will remove the
"/LD" designation from the PDR in approximately three business
days.
"The affirmation of the CFR at Caa3 reflects Moody's expectations
that Oregon Tool's credit metrics will remain weak, with projected
debt to EBITDA of around 17x and negative funds from operations
over the next 12-18 months. Moody's expects the company's $1.231
billion total debt following the exchange will increase during 2025
with higher revolver usage," said Motoki Yanase, Moody's Ratings
Vice President – Senior Credit Officer.
"The stable outlook reflects Oregon Tool's extended debt maturity
to October 2029 and Moody's expectations that the declining
inventory at the distribution channels should support gradual
improvements in the company's sales and profit," added Yanase.
Governance considerations are relevant to the rating action,
including risks from an aggressive financial policy and
unsustainable capital structure.
RATINGS RATIONALE
Oregon Tool's Caa3 CFR reflects Moody's expectations that the
company's current capital structure remains unsustainable without a
substantial recovery in earnings and cash flow. The rating also
reflects historically low growth in the company's primary end
markets (forestry and agriculture). The forestry segment has
demonstrated stable growth historically, but demand for lumber can
be impacted by the cyclical housing market.
Strengths include the company's dominant global market share along
with strong brand recognition, and good channel diversification.
Oregon Tool generates a high percentage of revenue from consumable
products such as chainsaw bars and chains and lawnmower blades that
must be replaced frequently providing a recurring revenue stream.
Moody's expects Oregon Tool to have weak liquidity over the next 12
to 18 months. Despite full availability under the $150 million ABL
revolver and $50 million revolving credit facility right after the
exchange, Moody's expects Oregon Tool to generate negative free
cash flow and depend on the revolvers in 2025 and 2026.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded should recovery prospects in the
event of default deteriorate further.
The ratings could be upgraded if the company maintains at least
adequate liquidity and demonstrates sustained improvement in
operating results with a path to positive funds from operation, and
attain a more sustainable capital structure.
Oregon Tool, Inc., headquartered in Portland, Oregon, is a global
manufacturer and distributor of professional-grade, consumable
parts and attachments for use in forestry, lawn and garden,
agriculture and concrete cutting applications. Platinum Equity,
through its affiliates, is the owner of Oregon Tool. The company
recorded $606 million of sales for the 12 months that ended
September 2024.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
ORLANDO MEDICAL: Updates Equity Interest Claim Details
------------------------------------------------------
Orlando Medical Institute, Inc., submitted a Final Subchapter V
Plan of Reorganization dated March 5, 2025.
The was originally organized in 2004 by Felix Marquez, a certified
Paramedic/Firefighter with 20 years of instructing experience. The
Debtor conducts its operations from leased office space located at:
6925 Lake Ellenor Drive, Orlando, Florida 32809.
There are five classes of claims and interests.
Class 5 consists of all equity interests in the Debtor. All Class 5
Interests in the Debtor shall be initially retained in the same
proportions such Interests were held as of the petition date (i.e.,
100% by Felix Marquez), and subsequently canceled upon satisfaction
fo all Distributions in accordance with the Plan. Class 5 is
unimpaired.
Like in the prior iteration of the Plan, on the Effective Date
Holders of Allowed General Unsecured Claims against the Debtor
shall receive a pro rata share of the Sale Proceeds after Payment
in full of all Allowed Administrative Claims, Allowed Priority Tax
Claims, Allowed Priority Claims, Allowed Class 1 Claims, and
Allowed Class 2 Claims. Class 4 is Impaired.
The Debtor shall operate its business until the closing of the Sale
as set forth herein. To fund Plan Distributions, Debtor shall sell
the Sale Assets to Buyer for $217,000.00. The proposed Sale to
Buyer follows extensive conversations with interested parties and
consideration of all potential recovery outcomes, including a sale
process requiring additional administrative expenses and delays to
the Debtor's Bankruptcy Case. After several weeks of discussions
with interested parties, the Debtor received a purchase offer for
substantially all of its Personal Property.
Ultimately, Debtor elected to pursue an asset sale to a competitive
participant within the Debtor's industry in order to maximize
recoveries to creditors through a quick sale process free of
contingencies other potential purchasers may require. In
consideration of the offers received, Debtor also considered the
potential for Buyer to consummate the Sale.
A full-text copy of the Final Subchapter V Plan dated March 5, 2025
is available at https://urlcurt.com/u?l=6T7unm from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Daniel A. Velasquez, Esq.
LATHAM, LUNA, EDEN & BEAUDINE, LLP
201 S. Orange Ave., Suite 1400
Orlando, Florida 32801
Tel: 407-481-5800
Fax: 407-481-5801
About Orlando Medical Institute
Orlando Medical Institute, Inc., is an accredited educational
institution providing Emergency Medical Technician and Paramedic
training.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-06628) with up to
$50,000 in assets and up to $1 million in liabilities.
Judge Tiffany P. Geyer oversees the case.
The Debtor is represented by Daniel A Velasquez, Esq., at Latham,
Luna, Eden & Beaudine, LLP.
OTB HOLDING: Pappas Dining Empire Makes Bankruptcy Bid
------------------------------------------------------
Eliza Ronalds-Hannon and Reshmi Basu of Bloomberg News repot that
Pappas Restaurants plans to acquire On The Border Mexican Grill &
Cantina and help the Tex-Mex chain emerge from bankruptcy,
according to sources familiar with the matter.
The Texas-based owner of Pappas Bros. Steakhouse, Pappas Bar-B-Q,
and Pappadeaux Seafood Kitchen has submitted a bid to purchase On
The Border through a bankruptcy court sale, the sources said,
requesting anonymity due to the confidential nature of the
process.
Court filings show that a Pappas Restaurants-affiliated entity has
provided recent bridge and other financing to the bankrupt
company.
About OTB Holding LLC
OTB Holding LLC The Debtors are the operators of the well-known
restaurant brand "On The Border Mexican Grill & Cantina," which
focuses on the development, operation, and franchising of casual
dining establishments in the U.S. and South Korea. Founded in 1982
in Dallas, Texas, On The Border is recognized for its sizzling
mesquite-grilled fajitas, award-winning margaritas, house-made
salsa, and endless chips and salsa. Over the past 40 years, the
brand has expanded from a single cantina into one of the most
popular Tex-Mex chains in the country, offering a wide range of
flavorful dishes inspired by Texas and Mexico. With more than 80
locations in the U.S. and internationally, it has become a go-to
spot for fresh Tex-Mex food and lively dining experiences. On The
Border stands out in the casual dining industry by leveraging its
unique and authentic brand. As of the Petition Date, the Debtors
continue to operate 60 restaurant locations across 18 states, all
of which are leased. In addition, the Company has franchise
agreements with third parties who run 20 additional locations in
the U.S. and South Korea.
OTB Holding and six affiliates sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ge. Lead Case No. 25-52415)
on March 4, 2025. In the petitions signed by Jonathan Tibus as
chief restructuring officer, OTB Holding reported an estimated
assets of $10 million to $50 million and liabilities of $10 million
to $50 million.
Judge Sage M. Sigler presides over the cases.
Jeffrey R. Dutson, Esq., Brooke L. Bean, Esq., and Kyung Won Song,
Esq., at King & Spalding LLP, represent the Debtors as legal
counsel. The Debtors also tapped Alvarez & Marsal North America LLC
as restructuring advisor; Hilco Corporate Finance, LLC as
investment banker; and Kurtzman Carson Consultants, LLC as claims
and noticing agent.
OUR FAMILY DIRECT: Gets OK to Use Cash Collateral Until May 9
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Kentucky
granted Our Family Direct Primary Care, PLLC interim authorization
to use cash collateral until May 9.
The interim order signed by Judge Joan LLoyd authorized Our Family
to use cash collateral to pay the expenses set forth in its budget,
with a 10% variance allowed.
Our Family projects total monthly operational expenses of $8,230.
As protection, secured creditors Bank of America and the U.S. Small
Business Administration were granted replacement security interests
in, and liens on, certain post-petition property of Our Family.
In addition, Bank of America will receive a monthly payment of $500
as further protection.
A final hearing is scheduled for May 6.
About Our Family Direct Primary Care
Our Family Direct Primary Care, PLLC operates an outpatient primary
care medical practice in Louisville, Ky., and offers premium direct
primary care.
Our Family Direct Primary Care filed Chapter 11 petition (Bankr.
W.D. Ky. Case No. 25-30532) on March 7, 2025. listing up to
$100,000 in assets and up to $500,000 in liabilities. John T.
Manire, sole member of Our Family, signed the petition.
The Debtor is represented by:
Peter M. Gannott, Esq.
Gannott Law Group, PLLC
10230 Shelbyville Rd., Suite 6
Louisville, KY 40223
Tel: (502) 861-6929/(502) 749-8800
pgannott@gannottlaw.com
OWENS & MINOR: Moody's Affirms Ba3 CFR & Rates 1st Lien Loans Ba3
-----------------------------------------------------------------
Moody's Ratings affirmed Owens & Minor, Inc.'s ("Owens & Minor")
Ba3 corporate family rating, Ba3-PD probability of default rating,
Ba3 ratings on its existing senior secured first lien bank credit
facilities, and B2 ratings on the company's senior unsecured notes.
Concurrently, Moody's assigned a Ba3 rating to the company's new
senior secured first lien term loan B due 2030. The Speculative
Grade Liquidity Rating (SGL) was upgraded to SGL-1 from SGL-2. The
outlook is maintained at negative.
The rating actions follow Owens & Minor's proposed new $800 million
first lien senior secured term loan due 2030. The total expected
proceeds of $1.4 billion from the term loan and planned senior
secured notes, which will be marketed separately in the following
weeks, will be used to finance the company's previously announced
acquisition of Rotech Healthcare Holdings, Inc. ("Rotech"), a home
medical equipment provider as well as pay related fees and
expenses. The acquisition is subject to regulatory reviews and is
expected to close by the second quarter of 2025.
The affirmation of the Ba3 CFR reflects Moody's views that Owens &
Minor's performance is stable, and the company's cost realignment
plan will have a continued positive impact on earnings. Earnings
will also benefit from a growing contribution from the company's
home health business which has higher profitability and stronger
growth prospects compared to Owens & Minor's core hospital
distribution business. Moody's expects leverage to increase to the
mid 5x range post-acquisition debt raise, with deleveraging towards
4x by year-end 2026 supported by earnings growth and further debt
repayment. Moody's expects that Owens & Minor will maintain very
good liquidity, supported by solid cash balances and positive
cashflow generation. Moody's notes that the company announced in
late February that it is exploring the sale of the Products &
Healthcare Services segment. If the sale occurs, Owens and Minor
will be smaller and less diversified. At this time, however, the
details and timing of the potential sale and use of the sales
proceeds are not yet finalized.
The outlook is negative. Moody's expects Owens & Minor's financial
leverage to remain elevated, and above Moody's downgrade trigger,
in the next 12-18 months.
RATINGS RATIONALE
The Ba3 CFR is supported by Owens & Minor's leading position in the
medical and surgical supply distribution business supplemented by a
manufacturing business. Owens & Minor focuses on single-use
consumable products which have low levels of technological
obsolescence risk but are essential to the provision of healthcare
in a wide range of settings. The company's continued expansion into
home health, including the Rotech acquisition, will broaden its
product range and support profitability and future earnings growth.
Moody's expects leverage pro forma for the Rotech acquisition and
debt raise to remain elevated but decline to the 4x-4.5x range,
driven by earnings growth and some debt repayment.
The rating is constrained by Owen's & Minor's scale compared to
larger peers, and low distribution margins reflecting a highly
competitive industry. Further, Owens & Minor's manufacturing
business faces a volatile outlook due to the high fixed cost nature
of the business and volatile demand for personal protective
equipment post COVID.
The Speculative Grade Liquidity Rating of SGL-1 reflects the
company's very good liquidity. Liquidity is supported by positive
free cash flow after required debt amortization and access to
external credit facilities. As of December 31, 2024, Owens & Minor
had cash of $49 million. Liquidity is also supported by a $450
million revolving credit facility (currently undrawn) that expires
in March 2027 and a $450 million asset receivable securitization
facility ($70 million drawn) that expires in 2028. Moody's expects
Owens & Minor to maintain adequate headroom on its covenants.
The Ba3 rating on the senior secured debt consider the size and
seasonal fluctuation of trade payables. The B2 rating on the senior
unsecured debt reflects its junior position relative to a
significant amount of secured debt.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company is able to increase
its scale while improving diversification. Additionally, the
ratings could also be upgraded if the company maintains good
liquidity and balanced financial policies. Along with the
aforementioned factors, the ratings could be upgraded if adjusted
debt/EBITDA is sustained below 3.0x.
The ratings could be downgraded if the company's operating
performance deteriorates or if the company fails to reduce leverage
through a combination of earnings growth and debt repayment. The
ratings could also be downgraded if liquidity deteriorates. Lastly,
the company could be downgraded if adjusted debt/EBITDA is
sustained above 4.0x
Owens & Minor, headquartered in Mechanicsville, VA, operates two
segments: Products & Healthcare Services that includes a
comprehensive portfolio of products and services to healthcare
providers and sources medical surgical products, and Patient Direct
that distributes critical supplies to the home for patients with
chronic conditions. For the LTM period ending December 30, 2024,
Owens & Minor had revenues of approximately $11 billion.
The principal methodology used in these ratings was Distribution
and Supply Chain Services published in December 2024.
PALLET CONSULTANTS: Brian Hofmeister Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Brian Hofmeister,
Esq., as Subchapter V trustee for Pallet Consultants North America,
LLC.
Mr. Hofmeister will be paid an hourly fee of $400 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Hofmeister declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brian W. Hofmeister, Esq.
3131 Princeton Pike
Building 5, Suite 110
Lawrenceville, NJ 08648
Phone: (609) 890-1500
Email: bwh@hofmeisterfirm.com
About Pallet Consultants North America
Pallet Consultants North America, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No.
25-12075) on February 28, 2025, listing between $100,001 and
$500,000 in assets and between $500,001 and $1 million in
liabilities.
Ellen M. McDowell, Esq. at Mcdowell Law, PC represents the Debtor
as legal counsel.
PAN AM DENTAL: Seeks to Hire H. Anthony Hervol as Legal Counsel
---------------------------------------------------------------
Pan Am Dental, P.A. seeks approval from the U.S. Bankruptcy Court
for the Western District of Texas to employ the Law Office Of H.
Anthony Hervol as their counsel.
The firm will render these services:
(a) represent the Debtor in this Chapter 11 case and advise
the Debtor as to its rights, powers, and duties;
(b) negotiate and prepare one or more plans of reorganization
for the Debtor;
(c) represent the Debtor at all hearings, meetings of
creditors, conferences, trials, and other proceedings in this
case;
(d) take necessary action to collect property of the estate
and file suits to recover the same, pursue or defend other
adversary proceedings as needed, or work with special counsel
appointed by the court to pursue or defend any adversary
proceedings;
(e) prepare legal papers;
(f) object to disputed claims;
(g) prepare and present of final accounting and motion for
final decree closing the bankruptcy case; and
(h) perform all other legal services for the Debtor.
The firm will be paid at its hourly rate of $325.
The firm received a retainer in the amount of $$9,962, plus $1,738
filing fee.
H. Anthony Hervol, Esq., an attorney at Law Office of H. Anthony
Hervol, 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:
H. Anthony Hervol, Esq.
Law Office of H. Anthony Hervol
22211 IH-10 West, Suite 1206-168
San Antonio, TX 78257
Tel: (210) 522-9500
Fax: (210) 522-0205
Email: hervol@sbcglobal.net
About Pan Am Dental, P.A.
Pan Am Dental, P.A. was incorporated on October 7, 2002, and has
conducted business as a dental office for almost 24 years.
Pan Am Dental filed Chapter 11 petition (Bankr. W.D. Texas Case No.
25-50270) on February 6, 2025, listing up to $500,000 in assets and
up to $1 million in liabilities. Jesus Peralez, Jr., president of
Pan Am Dental, signed the petition.
Judge Michael M. Parker oversees the case.
H. Anthony Hervol, Esq., at Law Office of H. Anthony Hervol,
represents the Debtor as bankruptcy counsel.
PARADIGM PARENT: S&P Assigns 'B' ICR, Outlook Stable
----------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to
Specialty distributor and service provider to the dental and animal
health supply markets Paradigm Parent LLC (dba Patterson Cos.
Inc.).
At the same time, we assigned its 'B' issue-level rating and '4'
recovery rating to Patterson's proposed term loan B and other
secured debt ranked pari passu.
The stable outlook reflects S&P's expectation for Patterson to
gradually deleverage below 7x while also generating healthy free
cash flow.
Specialty distributor and service provider to the dental and animal
health supply markets Paradigm Parent LLC (dba Patterson Cos. Inc.)
announced it has entered into a definitive agreement to be acquired
by financial sponsor Patient Square Capital for approximately
$4.275 billion.
The transaction will be funded by a new $900 million asset-based
lending (ABL) facility (expected to be $300 million drawn at
close), a $1.35 billion first-lien term loan B, $1.0 billion in
other secured debt, and sponsor equity.
S&P said, "While Patterson has been facing industry pressures in
fiscal 2025 (ending Apr. 26, 2025), we anticipate its resilient end
markets will drive growth in 2026 and beyond. We expect total
revenues to come down about 1% in 2025 and anticipate some positive
industry dynamics will uplift revenue growth modestly in 2026 and
2027, leading to top-line growth of 1%-3%. Through the first three
quarters of 2025, Patterson's sales decreased roughly 2.7% over the
prior year, driven mostly by softer demand in dental equipment and
companion animal products. Dental equipment sales declined about
6.2% as of its third quarter year to date as economic uncertainty,
elevated interest rates, and little product innovation has delayed
replenishment. Additionally, the continued decline in vet clinic
visits has impaired sales in its companion animal business. It is
our expectation that these trends will likely persist into the
fourth quarter of 2025 with performance in dental consumables and
production animal products to help offset the headwinds, supporting
our growth assumption."
Demand for dental services has remained robust and should continue
to be resilient, supporting dental consumables sales. Patterson's
longstanding relationships with a highly fragmented customer base
should continue to provide a solid base of recurring sales. S&P
said, "We also believe demographic tailwinds related to a growing
and aging population support longer-term growth prospects.
Furthermore, given our expectation for interest rates to continue
their downward trend, we anticipate prospects for dental equipment
sales to improve. Additionally, an aging replacement cycle for
existing equipment and product innovation from manufacturers should
support growth at least in the medium term. Overall, despite some
recent headwinds in dental equipment sales and some timing impacts
for the Change Healthcare cyberattack (limiting its customers'
ability to process claims for reimbursement) last year, we believe
Patterson's dental business will sustain long-term growth in the
low-single-digit percent area, with potential added benefit from
value-added services and investments in its practice management
software."
The veterinary industry continues to face a trend of fewer visit
volumes as demand has normalized from the highs in 2021, when there
was a significant increase in pet adoption. S&P said, "However, we
expect the vet industry to return to low-single-digit percent visit
volume growth in calendar 2026-2027 due to an aging companion
animal population from the boom of pet adoption during the peak of
the COVID-19 pandemic. Additionally, the continued trend toward the
humanization of pets and innovations in veterinary medicine further
support stability. Production animal sales have remained resilient
despite downward trends in herd sizes, reflecting Patterson's solid
customer relationships and tailored distribution strategy. Looking
forward, we expect Patterson's production animal business to
benefit from a growing population and an increasing demand for
animal-based proteins. Overall, we expect its animal health segment
to sustain long-term growth of 2%-4%, with potential upside from
product innovations and added services."
The highly competitive nature of Patterson's operations and
exposure to commodity-like products are a key credit risk.
Patterson operates in a crowded marketplace with competitors like
Henry Schein in dental, Cencora in both production and companion
animal distribution, and Covetrus (B-/Negative/--) in companion
animal, as well as regional distributors. These competitors often
have similar product offerings and scale, intensifying the pressure
to differentiate through price or service. Outside of direct
competitors, Patterson competes with manufacturers offering
products direct to consumer and large online retailers like Amazon
and Chewy.com. These platforms offer competitive pricing and
convenience that pose a challenge to traditional distribution
models. Additionally, roughly 81% of Patterson's top line is
derived from the distribution of relatively low-cost consumables,
which S&P believes have commodity-like properties. This dynamic can
lead to intense pricing competition, and with little contractual
order certainty, the cost of switching to competing products is
low.
Patterson is able to somewhat offset this risk with its
longstanding customer relationships, particularly in the production
animal space, which has a less fragmented customer base compared
with dental and vet clinic end markets. Additionally, its
value-added offerings including practice management services,
repair and maintenance, and practice management software aid in
building a stickier customer base. That said, some of these
ancillary services have been adopted by its competition, making it
more difficult for Patterson to differentiate.
Patterson's solid market position, good scale of operations, and
modest diversification all support the rating. Patterson is a
leading operator in each of its end markets with a long history of
operations that has fostered solid business relationships and brand
reputation. Patterson offers a robust and diversified product
portfolio within its niche markets, selling approximately 200,000
stock-keeping units across its operations. Its value-added services
also enhance its product offerings, helping to build customer
loyalty. In addition to the stability of the dental and animal
health end markets, S&P believes the underlying drivers are largely
independent, offering diversification benefits when one is faced
with headwinds. While its product and segment diversification are
solid, geographic diversification is limited. With majority of its
revenues generated in North America, Patterson is more exposed to
domestic economic cycles, regulatory changes, and market-specific
disruptions than competitors.
S&P said, "We expect Patterson's leverage to be elevated and cash
flows to be pressured post transaction, with modest improvement
thereafter. We believe margin pressure in 2025 will increase
leverage to about 8.0x. However, we anticipate it will deleverage
toward below 7x in 2026, with further deleveraging to the mid- to
low-6x area in 2027 due to margin improvement. Patterson's 2025
margins have felt the impact from slower top-line growth,
particularly in dental equipment and value-added services, which
offer a relatively higher margin profile when compared with
consumables. In addition, we believe the company has incurred some
costs in the year that we believe to be largely nonrecurring in
nature related to the Change Healthcare cyberattack and its
inventory accounting method, which has experienced an unusual
comparison over the prior year as certain dental products
experienced deflation. The company is also ending the sale of its
accounts receivable and equipment financing loans, which will now
be held on balance sheet. As a result, we have incorporated some
incremental benefit to margins as interest income on the loans has
historically exceeded the sale proceeds. We do not believe these
loans being held in-house adds risk in a material way, supported by
historical bad-debt on these agreements of less then 1%.These
items, together with top-line pressure, drive our assumption for
S&P Global Ratings-adjusted EBITDA margins of roughly 5% in 2025,
down about one percentage point from the year prior.
"We assume industry challenges will begin to abate in 2026;
however, categories like dental equipment that can be dependent on
interest rate trends and product innovations could take longer to
recover. That said, we still anticipate Patterson's S&P Global
Ratings-adjusted margins will recover in 2026 to about 6%,
reflecting the rollover of largely nonrecurring items, moderate
industry tailwinds, and the incremental benefit of removing its
off-balance sheet equipment financing and accounts receivable
facilities. Beyond 2026, we anticipate margins will continue to
gradually improve toward the mid-6% area because we expect the
company to benefit from its focus on enhancing its private-label
offering, and consolidating its footprint.
"Under Patterson's new capital structure, we expect total interest
expense to increase to $190 million-$200 million in 2026, which,
along with modest working capital outflows, will burden free cash
flow generation. That said, after capital expenditures of $50
million-$60 million funding a combination of maintenance and growth
investments, we expect 2026 reported free operating cash flow
(FOCF) to be $60 million-$70 million, increasing to $90
million-$105 million in 2027, driven by margin accretion and a
slight moderation in interest burden given our expectation for
interest rates to be on a downward trend.
"Our stable outlook reflects consistent top-line performance
benefiting from industry tailwinds over the next two years. It also
reflects our expectation for relatively high leverage of about 8x
in 2025, improving to the high-6x area in 2026, driven by
consistent top-line performance, efficiency initiatives, and the
rollover of largely nonrecurring expenses incurred in 2025. We
anticipate these items will support S&P Global Ratings-adjusted
EBITDA margins of 5%-6%."
S&P could lower its rating on Patterson if:
-- S&P believes Patterson will sustain leverage above the mid-7x
area; or
-- It sustains S&P Global Ratings-adjusted FOCF to debt below 3%
(equivalent to roughly $50 million in reported FOCF).
While unlikely over the next 12 months, S&P could look to upgrade
Patterson if
-- Leverage decreases below the 5.5x area; and
-- It generates S&P Global Ratings-adjusted FOCF to debt well
above 5%.
PARKLAND CORP: S&P Alters Outlook to Negative, Affirms 'BB' ICR
---------------------------------------------------------------
S&P Global Ratings revised the outlook on Calgary Alta.-based fuel
and convenience store provider Parkland Corp. to negative from
stable.
S&P said, "At the same time, we affirmed our ratings on Parkland,
including our 'BB' issuer credit rating on the company. We also
affirmed our 1 and 4 recovery ratings on the company's senior
secured and unsecured debt respectively."
The negative outlook reflects the heightened risk that, amid
uncertain macroeconomic conditions in North America, Parkland might
not be able to restore its 2025 EBITDA such that its adjusted
debt-to-EBITDA ratio will remain over 4x through 2025.
The negative outlook incorporates the risk that leverage could
remain over 4x in 2025. Parkland's debt-to-EBITDA ratio for
year-end 2024 weakened to about 4.7x. The company's year-end 2024
operating performance was also meaningfully weaker than 2023 and
relative to S&P Global Ratings' expectations. A combination of
tough market conditions in the U.S. and with weak and volatile
profitability at the refinery led to an overall EBITDA decline of
17% in 2024 compared with 2023.
Headwinds the U.S. operations have faced could continue through
2025. The company has faced significant challenges in the northern
U.S regions where Parkland primarily sells diesel and commercial
jet fuel. More specifically, weak macroeconomic activity in the
region throughout 2024 led to a demand-supply imbalance, fewer
opportunities to import fuel from other markets, and compressed
margins. And unseasonably warm weather led to lower commercial fuel
volumes in Canada. Because of these factors, fuel volumes declined
by 11% in the U.S segment and a modest 5% in Canada.
Furthermore, Parkland also faced headwinds within its retail
c-store business owing to increased competition (particularly in
the northern U.S. regions) and cautious consumer behavior that led
to reduced store traffic. As a result, the company's U.S. segment
c-store same store sales (excluding cigarettes) exhibited a
low-single digit % decline. Combined, these factors resulted in a
10% year-over-year EBITDA decline from Parkland's U.S segment.
The refinery segment faced headwinds in 2024. Parkland owns and
operates a 55,000 barrels per day (/bpd) light/medium sweet crude
refinery in Burnaby, British Columbia (B.C.). The company follows
the Pacific Northwest (5:3:1:1) crack spreads to measure its
refining margins, which were significantly weaker in 2024 (C$61 per
barrel [/bbl] versus C$73/bbl in 2023). An unplanned refinery
shutdown in the beginning of 2024 also contributed to EBITDA
weakness. As a result, Parkland's EBITDA from the refining segment
dropped sharply (50%) in 2024 compared with 2023. In addition,
although refining crack spreads are showing signs of improving from
the 2024 trough, there are risks they might not recover fully to
midcycle ranges. Therefore, S&P notes that profitability from the
refining segment could remain weak and volatile for an extended
period further increasing the uncertainties for EBITDA recovery in
2025 and causing the leverage ratio to remain higher for longer.
Consumer discretionary spending and competitive risks could
continue. S&P said, "Against the backdrop of trade tensions and
uncertainty caused by tariffs, we expect the macroeconomic
environment will remain subdued for 2025, a factor that will likely
continue to weigh on Parkland's commercial fuel supply business. We
also expect consumers both in U.S and Canada will remain cautious
with respect to discretionary spending habits. This behavior could
limit c-store foot traffic, thereby affecting fuel volumes and
merchandise sales." Furthermore, to attract consumer foot traffic,
Parkland's peers could also enhance their product offerings and
improve operating efficiencies, further intensifying competition
and slowing growth prospects for Parkland both with respect to fuel
volumes and convenience store sales.
Parkland's management team has credible plans to restore leverage.
The company's management team has reiterated its commitment to
bring leverage to Parkland's publicly stated target of 2x-3x (3x-4x
as per S&P Global Ratings' calculations). Parkland continues to
improve the operational side of its business by continuing to focus
on operating costs & efficiencies, expand its food offerings and
c-store merchandise, renovate its store-footprint and enhance its
loyalty program to achieve high-margin c-store sales growth while
also focusing on supply-chain efficiencies. In addition, there is a
potential higher for inter-provincial or local driving season in
Canada which could boost fuel sales. Furthermore, the company's
diversity of operations into Caribbean regions particularly Guyana
and Suriname (due to increased oil exploration activities) should
offset weakness in the U.S. Finally, a decline in western Canadian
crude prices could benefit the refinery profitability.
Parkland has also identified certain assets for sale and plans to
use the proceeds toward debt repayment. In addition, the company
has identified certain cost-saving initiatives that could modestly
improve EBITDA in 2026. S&P said, "Our understanding is that
management will pause meaningful shareholder returns and high
debt-funded acquisitions until leverage improves to the company
stated target of 2x-3x. As a result, we expect our adjusted
debt-to-EBITDA ratio will improve to the mid-3x to high-3x range by
year-end 2025."
The negative outlook reflects the heightened risks that, amid an
uncertain macroeconomic environment, Parkland might not be able to
quickly restore its EBITDA for 2025 resulting in a debt-to-EBITDA
ratio that will remain over 4x through 2025 and beyond.
S&P could lower its ratings on Parkland if it expects EBITDA will
remain pressured such that its debt to EBITDA (S&P Global
Ratings-adjusted) will remain above 4x beyond 2025. Such a
situation could occur if:
-- Macroeconomic headwinds reduce both c-store traffic and miles
driven, which in turn could pressure Parkland's EBITDA generation
and weaken leverage measures; or
-- Refinery margins could continue to remain volatile or weaken
the company faces operational challenges and/or faces delay in
executing its strategic asset sales thereby delaying deleveraging
prospects.
S&P could revise the outlook to stable if Parkland demonstrates
improvement in EBITDA such that it expects leverage will improve
below 4x by 2025. Such a situation could occur if the company:
-- Demonstrates its stated initiatives to improve c-store
performance, realize cost efficiencies, and improve EBITDA;
-- Successfully executes its asset-sale plans; or
-- Adheres to financial policies that support deleveraging to
below 4x on a sustained basis.
PAVMED INC: Tasso Partners Reports 2.57M Shares, Prefunded Warrant
------------------------------------------------------------------
Tasso Partners, LLC, a 10% owner in PAVmed Inc., disclosed in a
Form 3 filed with the U.S. Securities and Exchange Commission that
as of March 14, 2025, it beneficially owned 2,574,350 shares of
common stock directly, as well as a prefunded warrant to purchase
53,974 shares of common stock at an exercise price of $0.001 per
share, subject to stockholder approval.
About PAVMed
Headquartered in New York, NY, PAVmed Inc. is structured to be a
multi-product life sciences company organized to advance a pipeline
of innovative healthcare technologies. Led by a team of highly
skilled personnel with a track record of bringing innovative
products to market, PAVmed is focused on innovating, developing,
acquiring, and commercializing novel products that target unmet
needs with 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, the
latter of which is its current strategy given prevailing market
conditions.
Headquartered in New York, NY, Marcum LLP, the Company's auditor
since 2019, issued a "going concen" qualification in its report
dated March 24, 2025. The report cites 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.
As of Dec. 31, 2024, PavMed had $30.66 million in total assets,
$37.69 million in total liabilities, and $7.03 million in total
stockholders' deficit.
PERFORMANCE MOBILE: Seeks to Hire Allen Vellone Wolf as Counsel
---------------------------------------------------------------
Performance Mobile Care, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Colorado to employ 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, as
well as all contested and litigation matters that arise in this
case.
The firm will be paid at these rates:
Jeffrey A. Weinman $650 per hour
Bailey C. Pompea $425 per hour
Paralegals $120 to $225 per hour
The firm received from the Debtor a retainer of $20,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jeffrey A. Weinman, Esq., a partner at Allen Vellone Wolf Helfrich
& Factor P.C., 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
BPompea@allen-vellone.com
About Performance Mobile Care, LLC
Performance Mobile Care LLC is a vehicle detailing company
specializing in providing mobile detailing services for trucks.
Performance Mobile Care LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No.
25-11281) on March 13, 2025. In its petition, the Debtor reports
estimated assets between $100,000 and $500,000 and estimated
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Kimberley H. Tyson handles the case.
The Debtor is represented by Jeffrey A. Weinman, Esq., at ALLEN
VELLONE WOLF HELFRICH & FACTOR, P.C.
PHILLIPS TOTAL: Seeks Chapter 11 Bankruptcy in Wisconsin
--------------------------------------------------------
On March 28, 2025, Phillips Total Care Pharmacy Inc. filed Chapter
11 protection in the U.S. Bankruptcy Court for the Western
District of Wisconsin. According to court filing, the
Debtor reports between $100 million and $199 million in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Phillips Total Care Pharmacy Inc.
Phillips Total Care Pharmacy Inc. is a retail pharmacy based in
Mauston, Wisconsin.
Phillips Total Care Pharmacy Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D. Wis. Case No. 25-10699) on
March 28, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
The Debtor is represented by Claire Ann Richman, Esq. and Michael
P. Richman, Esq. at Richman & Richman LLC.
PHOENIX EXTEND-A-Suites: Hires R.O.I. Properties as Broker
----------------------------------------------------------
Phoenix Extend-A-Suites, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Arizona to employ R.O.I.
Properties, LLC as real estate broker.
The firm will market and sell the Debtor's real property located at
17211 North Black Canyon Highway, Phoenix, AZ.
The firm will be paid a commission of 5 percent of the total sale
price of the Property.
As 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:
Beth Jo Zeitzer
R.O.I. Properties
3333 E. Camelback RD, #252
Phoenix, AZ 85018
Telephone: (602) 319-1326
Facsimile: (602) 794-6389
About Phoenix Extend-A-Suites, LLC
Phoenix Extend-A-Suites LLC is a limited liability company.
Phoenix Extend-A-Suites LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-00688) on January
27, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Brenda Moody Whinery handles the case.
The Debtor is represented by Patrick F. Keery, Esq., at Keery
Mccue, PLLC, in Scottsdale, Arizona.
PINEAPPLE PROPERTIES: Aaron Cohen Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Aaron Cohen, Esq., a
practicing attorney in Jacksonville, Fla., as Subchapter V trustee
for Pineapple Properties of SA, LLC.
Mr. Cohen will be paid an hourly fee of $315 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cohen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Aaron R. Cohen, Esq.
P.O. Box 4218
Jacksonville, FL 32201
Tel: (904) 389-7277
Email: aaron@arcohenlaw.com
About Pineapple Properties of SA
Pineapple Properties of SA, LLC operates the 44 Spanish Street Inn
located in St. Augustine, Fla. Originally built in 1920, the Inn
offers guests a historic setting with modern amenities. The Inn has
eight guest rooms, each featuring private baths, and provides
convenient access to local attractions.
Pineapple Properties of SA sought relief under Chapter 11 of the
Bankruptcy Code filed its voluntary petition for Chapter 11
protection (Bankr. M.D. Fla. Case No. 25-00647) on March 5, 2025,
listing $13,172 in assets and $1,184,420 in liabilities. Brian A.
Funk as managing member, signed the petition.
Judge Jacob A Brown oversees the case.
The Law Offices of Mickler & Mickler, LLP serves as the Debtor's
bankruptcy counsel.
PPS 77 LLC: Seeks Chapter 11 Bankruptcy in New York
---------------------------------------------------
On March 25, 2025,PPS 77 LLC filed Chapter 11 protection in the
U.S. Bankruptcy Court for the Southern District of New York.
According to court filing, the Debtor reports 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 PPS 77 LLC
PPS 77 LLC operates a parking garage providing vehicle parking
services at 433 East 76th Street, New York, NY.
PPS 77 LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 25-10550) on March 25, 2025. In its
petition, the Debtor reports estimated assets up to $50,000 and
estimated liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Martin Glenn handles the case.
The Debtor is represented by H Bruce Bronson, Esq. at BRONSON LAW
OFFICES PC.
PRESBYTERIAN HOMES: Hires Christian Care as Services Provider
-------------------------------------------------------------
Presbyterian Homes and Services Of Kentucky, Inc. and its affiliate
seek approval from the U.S. Bankruptcy Court for the Western
District of Kentucky to employ Christian Care Communities, Inc. as
administrative and support services provider.
The firm's services include assistance in the Debtors' accounting
processes, financial reporting, and the development of a plan of
reorganization.
The firm will be paid a monthly fee of $22,600.
As 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:
Mary Lynn Spalding
Christian Care Communities, Inc.
12710 Townepark Way, Suite 1000
Louiseville, KY 40243
Tel: (502) 254-4200
About Presbyterian Homes and Services
of Kentucky, Inc.
Presbyterian Homes and Services of Kentucky, Inc. sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ky. Case
No. 24-33060) on December 15, 2024, with up to $10 million in both
assets and liabilities. Hattie H. Wagner, president and chief
executive officer of Presbyterian, signed the petition.
Judge Alan C. Stout oversees the case.
Charity S. Bird, Esq., at Kaplan Johnson Abate & Bird, LLP,
represents the Debtor as legal counsel.
Stock Yards Bank & Trust Company, as secured creditor, is
represented by:
Edward M. King, Esq.
Jamie Brodsky, Esq.
Frost Brown Todd, LLP
400 W. Market Street, 32nd Floor
Louisville, Kentucky 40202
Telephone: (502) 589-5400
Hardin KY Opco and Hardin KY Propco, as secured creditors, are
represented by:
Mary Elisabeth Naumann, Esq.
Chacey R. Malhouitre, Esq.
Jackson Kelly, PLLC
100 W. Main Street, Ste. 700
Lexington, KY 40507
Telephone: (859) 255-9500
Facsimile: (859) 252-0688
Email: mnaumann@jacksonkelly.com
chacey.malhouitre@jacksonkelly.com
PROGRESS SOFTWARE: Egan-Jones Cuts Sr. Unsecured Ratings to BB+
---------------------------------------------------------------
Egan-Jones Ratings Company on March 21, 2025, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Progress Software Corporation to BB+ from BBB-.
Headquartered in Burlington, Massachusetts, Progress Software
Corporation develops, markets, and distributes applications.
PURDUE PHARMA: Lawsuit Injunction Extended Prior to Plan Hearings
-----------------------------------------------------------------
Vince Sullivan of Law360 Bankruptcy Authority reports that bankrupt
drugmaker Purdue Pharma LP obtained another extension of the
litigation stay against the company and its Sackler family owners
as it pursues late May 2025 approval of a disclosure statement
detailing a Chapter 11 plan built around a $7.4 billion opioid
settlement.
About Purdue Pharma LP
Purdue Pharma L.P. and its subsidiaries --
http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the reimagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19
23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP, as
legal counsels; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk, LLC, is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
* * *
U.S. Bankruptcy Judge Robert Drain in early September 2021 approved
a plan to turn Purdue into a new company (Knoa Pharma LLC) no
longer owned by members of the Sackler family, with its profits
going to fight the opioid epidemic. The Sackler family agreed to
pay $4.3 billion over nine years to the states and private
plaintiffs and in exchange for a lifetime legal immunity. The deal
resolves some 3,000 lawsuits filed by state and local governments,
Native American tribes, unions, hospitals and others who claimed
the company's marketing of prescription opioids helped spark and
continue an overdose epidemic.
Separate appeals to approval of the Plan have already been filed by
the U.S. Bankruptcy Trustee, California, Connecticut, the District
of Columbia, Maryland, Rhode Island and Washington state, plus some
Canadian local governments and other Canadian entities.
In early March 2022, Purdue Pharma reached a nationwide settlement
over its role in the opioid crisis, with the Sackler family members
boosting their cash contribution to as much as $6 billion. The
settlement was hammered out with attorneys general from the eight
states -- California, Connecticut, Delaware, Maryland, Oregon,
Rhode Island, Vermont and Washington -- and D.C. who had opposed
the previous settlement.
R.A.R.E. CORP: Court Extends Cash Collateral Access to April 17
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
extended R.A.R.E. Corporation's authority to use cash collateral
from March 13 to April 17.
The interim order penned by Judge David Cleary authorized the
company to use cash collateral to pay operating expenses in
accordance with its projected budget.
This latest approval aligns with the terms of the court's Feb. 20
order, which remains in effect.
The next hearing is scheduled for April 16, with an objection
deadline of April 14.
About R.A.R.E. Corporation
R.A.R.E. Corporation sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-02127) on February
15, 2024, with up to $500,000 in assets and up to $1 million in
liabilities. R.A.R.E. President Rocky Eastland signed the
petition.
Judge David D. Cleary oversees the case.
The Debtor is represented by:
William J Factor, Esq.
William J. Factor
Tel: 312-878-6976
Email: wfactor@wfactorlaw.com
RABAH LLC: Court OKs Dallas Property Sale to Jacqueline Nortman
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas,
Dallas Division, has approved Rabah LLC to sell real property, free
and clear of all liens, claims and encumbrances.
The Court authorized the Debtor, a Texas limited liability
corporation, to sell, transfer and convey the real property
described as Lot 19, Block 6 Shores of Eastern Hills, commonly
known as 5025 Grace Drive, 75043, City of Garland, Dallas County,
Texas, to the Proposed Purchaser, Ms. Jacqueline Nortman.
The Property will be sold in the purchase price of $490,000.00.
The Court ordered that liens securing payment of the current-year
ad valorem property taxes shall remain
attached to the property to secure payment of all ad valorem
property taxes assessed on the
property for the current tax year and any penalties and interest
that may accrue.
The Debtor is authorized to pay at closing the reasonable and
customary closing costs and commissions set forth in the earnest
money contract.
About Rabah, LLC
Rabah, LLC sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-33530) on November 4,
2024, listing $100,001 to $500,000 in both assets and liabilities.
Judge Scott W Everett presides over the case.
James B. Jameson, Esq. at James B. Jameson & Associates, PC
represents the Debtor as counsel.
RADIANT ONE: Hires Bradford Law Offices as Bankruptcy Counsel
-------------------------------------------------------------
Radiant One, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of North Carolina to hire Bradford Law Offices
to handle its Chapter 11 case.
The firm's hourly rates are:
Attorney $575
Paralegal $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm will be paid a retainer of $17,500, plus $1,738 filing
fee.
Danny Bradford, a member at Bradford Law Offices, 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:
Danny Bradford, Esq.
Bradford Law Offices
455 Swiftside Drive, #106
Cary, NC 27518
Tel: (919) 758-8879
Email: Dbradford@bradford-law.com
About Radiant One, LLC
Radiant One, LLC operates as a beauty salon in Fuquay-Varina, North
Carolina.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-00787-5-PWM) on March
4, 2025. In the petition signed by Manoj Michael, manager, the
Debtor disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Judge Pamela W. McAffee oversees the case.
Danny Bradford, Esq., at Paul D. Bradford, PLLC, represents the
Debtor as legal counsel.
RANGE RESOURCES: Egan-Jones Retains BB Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on March 13, 2025, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Range Resources Corporation. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Fort Worth, Texas, Range Resources Corporation is
an independent oil and gas company that explores, develops, and
acquires oil and gas properties.
REGO PAYMENT: Extends Maturity of $20MM Credit Line to March 2026
-----------------------------------------------------------------
Rego Payment Architectures, Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that it
entered into a Second Amendment to Investor Private Line of Credit
with James Davison.
The Amendment extended the maturity date of the existing Investor
Private Line of Credit Agreement with the Lender by one year, from
March 13, 2025 to March 13, 2026. There is no outstanding balance
on the Line of Credit.
The Lender is an existing shareholder of the Company.
Pursuant to the Existing Agreement, as modified by the Second
Amendment, the Lender may extend unsecured loans to the Company in
the amount of up to $20,000,000 which may be drawn upon by the
Company through March 13, 2026 in order to provide additional
capital to facilitate the Company's operations. Drawings may be
made by the Company as long as there has not been any material
change in the operations of the Company. Loans under the LOC
Agreement bear interest at the rate of 7% per annum.
Drawings under the LOC Agreement must be repaid in full:
(i) upon the execution and completion of a sale, merger or
other transaction of the Company whereby the Company transfers its
ownership and/or its assets to a third party within 30 days of the
completion of the transaction or
(ii) if a Change of Control does not occur within one year from
the date hereof, the Company will repay any amounts outstanding
within 60 days.
About REGO Payment
REGO Payment Architectures, Inc. and its subsidiaries provide
consumer software through its mobile payment platform, Mazoola-a
family-focused mobile banking solution. Headquartered in Blue Bell,
Pennsylvania, the Company holds a portfolio of trade secrets and
four U.S. patents. REGO offers an all-digital financial payments
platform designed for minors, particularly those under 13 years
old, to purchase goods and services, complete chores, and learn in
a secure online environment, with parental permission, oversight,
and control, while ensuring compliance with the Children's Online
Privacy Protection Act and General Data Protection Regulation.
Going Concern
The Company cautioned in a 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, and 2023, it
had a net loss of $2,291,463 and $5,408,901, respectively, and has
not generated significant revenue since its inception.
The Company has yet to file its Annual Report on Form 10-K for the
year ended December 31, 2024.
REMEMBER ME: Seeks to Hire Solinity Services as Consultant
----------------------------------------------------------
Remember Me Senior Care LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Tennessee to hire Solinity
Services, LLC as consultant.
The Debtors wish to continue to employ the firm for community
management and consulting services, bookkeeping, along with
preparation of the Monthly Operating Reports for both the Debtors,
during the pendency of the bankruptcy cases.
Josh Crisp, founder & CEO of Solinity, assured the court that his
firm is a "disinterested person" as the term is defined in 11
U.S.C. 101(14).
The firm can be reached through:
Josh Crisp
Solinity Services, LLC
714 S. Gay Street, Suite 200
Knoxville, TN 37902
Tel: (833) 865-8255
About Remember Me Senior Care LLC
Remember Me Senior Care LLC located in Cleveland, TN, offers
personalized assisted living and memory care services in a homelike
environment. The facility provides a range of services, including
help with daily activities, medication management, and specialized
care for those with Alzheimer's or other dementias.
Remember Me Senior Care LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 25-10451) on
February 18, 2025. In its petition, the Debtor reports estimated
assets up to $50,000 and estimated liabilities between $10 million
and $50 million.
The Debtor is represented by Jeffrey W. Maddux, Esq. at CHAMBLISS,
BAHNER & STOPHEL, P.C.
RHDM OIL: Seeks to Hire Bisom Law Group as Bankruptcy Counsel
-------------------------------------------------------------
RHDM Oil Inc. seeks approval from the U.S. Bankruptcy Court for the
Central District of California to hire The Bisom Law Group to
handle its Chapter 11 case.
The firm will be paid at its hourly rate of $600 and received
$9,000 of the initial $31,738 retainer from the Debtor.
Andrew Bisom, Esq., an attorney at The Bisom Law Group, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Andrew S. Bisom, Esq.
The Bisom Law Group
300 Spectrum Center Drive, Ste. 400
Irvine, CA 92618
Telephone: (714) 643-8900
Facsimile: (714) 643-8901
Email: abism@bisomlaw.com
About RHDM Oil Inc.
RHDM Oil Inc., operating as Rosecrans Norwalk 76, a gas station
located at 12030 Rosecrans Ave. in Norwalk, California.
RHDM Oil Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Cal., Case No. 25-11337) on February 21, 2025. In
its petition, the Debtor reports estimated assets between $50,000
and $100,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Neil W. Bason handles the case.
The Debtor is represented by Andrew S. Bisom, Esq. at Bisom Law
Group.
RMLJ HOLDINGS: Hires Realty ONE Group 20 as Real Estate Broker
--------------------------------------------------------------
RMLJ Holdings, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Arizona to employ Realty ONE Group 20 as
broker.
The Debtor needs a broker to sell its real property located at 897
E. Cherry Hills Dr., Chandler, Arizona.
The firm will receive a commission of 2.75 percent of the
property's full purchase price. Broker shall receive an additional
compensation of 2.5 percent of the full purchase price if the
purchaser is not represented by a broker.
Darwin Wall, a broker at Realty ONE Group 20, 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:
Darwin Wall
Realty ONE Group 20
3530 S. Val Vista Dr., Ste. 114
Gilbert, AZ 85297
Telephone: (602) 625-2075
Email: dwall@darwinwall.com
About RMLJ Holdings 1
RMLJ Holdings 1 LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-04630) on June 10,
2024. In the petition signed by Philip G. Zweig, as manager, the
Debtor estimated assets and liabilities between $1 million and $10
million.
Judge Brenda K. Martin oversees the case.
D. Lamar Hawkins, Esq., at Guidant Law, PLC serves as the Debtor's
counsel.
ROYSTONE ON QUEEN: Court Extends Use of Cash Collateral to May 30
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington
granted the motion filed by Roystone on Queen Anne, LLC, extending
its authority to use cash collateral until May 30.
The court previously issued a final order in Roystone's bankruptcy
case, allowing the company to use cash collateral to pay its
operating expenses.
Roystone's extended budget was also approved and the company was
authorized to use cash collateral according to this budget. Any
payments made according to this budget will be deemed transferred
to the payee free and clear of any lien of 5 Roy SEA1, LLC, a
creditor.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/fWAbk from PacerMonitor.com.
About Roystone On Queen Anne
Roystone on Queen Anne, LLC owns a newly-constructed residential
apartment complex commonly known as the Roystone Apartments located
at 5 W. Roy Street, Seattle, Wash. The property has an appraised
value of $39,056,543.
Roystone on Queen Anne filed its voluntary petition for Chapter 11
protection (Bankr. W.D. Wash. Case No. 24-11462) on June 12, 2024,
listing $39,433,126 in assets and $35,776,259 in liabilities. James
H. Wong, manager of Vibrant Cities, LLC, signed the petition.
Judge Christopher M. Alston oversees the case.
Bush Kornfeld, LLP serves as the Debtor's legal counsel.
SAN BENITO: Appeals Court Upholds Hazel Hawkins' Chapter 9 Ruling
-----------------------------------------------------------------
Friday, the Appeals Court upheld the Bankruptcy Court's decision
regarding Hazel Hawkins Memorial Hospital's eligibility for Chapter
9 bankruptcy protection. "While we respectfully disagree with the
ruling, we remain steadfastly focused on our plans to secure the
hospital's future.
"The Chapter 9 process allowed us to achieve critical milestones,
including maintaining full hospital operations, preserving jobs,
strengthening our cash position, and extending the time needed to
identify a long-term partner. Both the Appeals Court and Bankruptcy
Court decisions observed that the District was financially
distressed before bankruptcy and point to the success of the
District's turnaround efforts as the reason bankruptcy was no
longer eligible.
"We do not expect today's ruling to impact the ongoing lease and
purchase agreement negotiations with Insight. Our focus remains on
ensuring the long-term stability of Hazel Hawkins Memorial Hospital
and maintaining access to high-quality, local healthcare for San
Benito County residents."
About Hazel Hawkins Memorial Hospital
Hazel Hawkins Memorial Hospital -- http://www.hazelhawkins.com/--
is a full-service, public agency hospital delivering modern
medicine and compassionate care to the growing San Benito County
community. HHMH offers hundreds of health services across multiple
locations, including top-tier specialists, a modern Emergency
Department, and a state-of-the-art Women's Center.
San Benito Health Care District, which operates Hazel Hawkins
Memorial Hospital in Hollister, California, filed a Chapter 9
petition (Bankr. N.D. Cal. Case No. 23-50544) on May 23, 2023.
The Debtor's counsel:
Michael A. Sweet
Fox Rothschild LLP
(415) 364-5540
msweet@foxrothschild.com
SANUWAVE HEALTH: Ian Miller Discloses Ownership of 18,459 Shares
----------------------------------------------------------------
Ian D. Miller, director of SANUWAVE Health, Inc., disclosed in a
Form 3 filing with the U.S. Securities and Exchange Commission that
as of April 10, 2022, he directly owns 18,459 shares of the
Company's common stock, and 890 shares indirectly by his spouse.
About SANUWAVE
Headquartered in Eden Prairie, MN, SANUWAVE Health --
www.sanuwave.com -- is focused on the research, development, and
commercialization of its patented, non-invasive and biological
response-activating medical systems for the repair and
regeneration
of skin, musculoskeletal tissue, and vascular structures.
SANUWAVE's end-to-end wound care portfolio of regenerative
medicine
products and product candidates helps restore the body's normal
healing processes. SANUWAVE applies and researches its patented
energy transfer technologies in wound healing, orthopedic/spine,
aesthetic/cosmetic, and cardiac/endovascular conditions.
SAS GROUP: Seeks Chapter 11 Bankruptcy in California
----------------------------------------------------
On March 25, 2025, Sash Group Incorporated filed Chapter 11
protection in the U.S. Bankruptcy Court for the Southern District
of California. According to court filing, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available tSo
unsecured creditors.
About Sash Group Incorporated
Sash Group Incorporated 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.
Sash Group, Incorporated sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Cal. Case No. 25-01150) on March 25,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by Matthew D. Resnik, Esq. at RHM LAW
LLP.
SBLA INC: Hires Shraiberg Page P.A. as Co-Counsel
-------------------------------------------------
SBLA, Inc. seeks approval from the U.S. Bankruptcy Court for the
Southern District of Florida to employ Shraiberg Page P.A. as
co-counsel.
The firm will provide these services:
a. advise the Debtor generally regarding matters of bankruptcy
law in connection with the bankruptcy case;
b. advise the Debtor of the requirements of the bankruptcy code,
the Federal Rules of Bankruptcy Procedure, applicable bankruptcy
rules, including local rules, pertaining to the administration of
the case and U.S. Trustee Guidelines related to the daily operation
of its business and administration of the estate;
c. represent the Debtor in all proceedings before the bankruptcy
court;
d. prepare and review motions, pleadings, orders, applications,
adversary proceedings, and other legal documents arising in the
bankruptcy case;
e. negotiate with creditors, prepare and seek confirmation of a
plan of reorganization and related documents, and assist the Debtor
with implementation of any plan; and
f. perform all other legal services for the Debtor, which may be
necessary herein.
The firm will be paid at these rates:
Partners $400 to $700 per hour
Legal Assistants $300 per hour
Prior to the petition date, the firm received a retainer of
$50,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Bradley S. Shraiberg, Esq., a partner at Shraiberg Page P.A.,
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:
Bradley S. Shraiberg, Esq.
Shraiberg Page P.A.
2385 NW Executive Center Drive, #300
Boca Raton, FL 33431
Tel: (561) 443-0800
Fax: (561) 998-0047
Email: bss@slp.law
shess@slp.law
About SBLA, Inc.
SBLA, Inc. focuses on providing non-invasive, at-home anti-aging
solutions through its innovative "sculpting wands." The Company's
product line includes items like the Neck, Chin & Jawline Sculpting
Wand, Facial Instant Sculpting Wand, and Lip Plump & Sculpt to help
firm, lift, and rejuvenate various areas of the face and body.
Known for its collaboration with Christie Brinkley, SBLA emphasizes
effective, science-backed skincare to offer alternatives to
invasive procedures.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12606) on March 11,
2025. In the petition signed by Leonard Cogan, CFO, the Debtor
disclosed $801,858 in assets and $3,252,917 in liabilities.
Judge Mindy A. Mora oversees the case.
Bradley S. Shraiberg, Esq., at Shraiberg Page PA, represents the
Debtor as legal counsel.
SEDALIA AESTHETICS: Hires Johnson Tax Service as Accountant
-----------------------------------------------------------
Sedalia Aesthetics, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Missouri to employ Johnson Tax
Service, LLC as accountant.
The firm will provide accounting services for the Debtor as
necessary and beneficial to the Debtor and the bankruptcy estate.
The firm will be paid at the rates of $200 per quarter for payroll
and payroll reports; $25 per quarter for sales returns preparation
and filing; and $1 per transaction for data entry; and $250 for the
preparation of Scheduled C.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Lori Schroeder, a partner at Johnson Tax Service, 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:
Lori Schroeder
Johnson Tax Service, LLC
201 South US Highway 65 Highway
Lincoln, MO 65338
Tel: (660) 547-3332
About Sedalia Aesthetics
Sedalia Aesthetics, LLC, doing business as The Beauty Bar, The
Beauty Bar of Jefferson City, and The Beauty Bar of Marshall, is
the owner of a building located at 9 North Lafayette, Marshall,
Mo., valued at $110,000.
Sedalia Aesthetics sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Mo. Case No. 24-20453) on
Oct. 21, 2024, with total assets of $311,684 and total liabilities
of $3,017,192. Michelle Bassett, managing member, signed the
petition.
Judge Cynthia A. Norton oversees the case.
The Debtor is represented by Erlene W. Krigel, Esq., at Krigel
Nugent + Moore, P.C.
SERVANT GROUP: Seeks Subchapter V Bankruptcy in Arizona
-------------------------------------------------------
On March 25, 2025, The Servant Group LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Arizona. 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 The Servant Group LLC
The Servant Group LLC based in Surprise, Arizona, specializes in
providing nursing-supported residential homes for adults and
children with developmental disabilities. The Company offers a
variety of home and community-based services, including adult day
care, adult day health care, home health aide, personal care,
respite care, and visiting nurse services.
The Servant Group LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 25-02541) on March 25,
2025. In its petition, the Debtor reports estimated assets between
$50,000 and $100,000 and estimated liabilities between $1 million
and $10 million.
Honorable Bankruptcy Judge Brenda K. Martin handles the case.
The Debtor is represented by Patrick Keery, Esq. at KEERY MCCUE,
PLLC.
SHERWOOD HOSPITALITY: Taps Sussman Shank as Bankruptcy Counsel
--------------------------------------------------------------
Sherwood Hospitality Group, LLC and its affiliates filed an amended
application seeking approval from the U.S. Bankruptcy Court for the
District of Oregon to employ Sussman Shank LLP as counsel.
The firm's services include providing the Debtors with advice on
their duties and responsibilities as debtors-in-possession,
preparing and filing schedules, defending motions for relief from
stay, analysis and objections to claims, formulation and approval
of a plan of reorganization, negotiations with creditors and other
parties in interest, and all other matters requiring legal
representation of the Debtors in these Chapter 11 cases.
Sussman Shank received a pre-petition retainer of $60,000 from
Devang Patel for benefit of DVKOCR Tigard, LLC. The firm obtained a
prepetition retainer of $40,000 from Devang Patel for benefit of
Sherwood Hospitality Group, LLC.
Douglas Ricks, Esq., an attorney at Sussman Shank, disclosed in a
court filing that his firm is a "disinterested person" as defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Thomas W. Stilley, Esq.
Douglas R. Ricks, Esq.
Sussman Shank, LLP
1000 SW Broadway, Suite 1400
Portland, OR 97205
Telephone: (503) 227-1111
Facsimile: (503) 248-0130
Email: tstilley@sussmanshank.com
dricks@sussmanshank.com
About Sherwood Hospitality Group, LLC
Sherwood Hospitality Group LLC, d/b/a Hampton Inn Sherwood
Portland, operating as Hampton Inn Sherwood Portland, is a
hospitality company based in Sherwood, Oregon. The Company manages
a hotel offering amenities like free breakfast, free Wi-Fi, a
heated indoor pool, and a fitness center.
Sherwood Hospitality Group LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Or. Case No. 25-30484) on
February 17, 2025. In its petition, the Debtor reports estimated
assets between $1 million and $10 million and estimated liabilities
between $10 million and $50 million.
Honorable Bankruptcy Judge Peter C. Mckittrick handles the case.
The Debtor is represented by Douglas R. Ricks, Esq., at SUSSMAN
SHANK LLP.
SHINE SOLAR: Seeks to Hire Bond Law Office as Bankruptcy Counsel
----------------------------------------------------------------
Shine Solar, LLC seeks approval from the U.S. Bankruptcy Court for
the Western District of Arkansas to employ the Bond Law Office to
handle its Chapter 11 case.
The firm will be paid at these hourly rates:
Stanley Bond, Lead Counsel $375
Kathryn Worlow, Associate Counsel $250
Paraprofessional $125
The firm received a retainer of $58,262 and a filing fee of $1,738
from the Debtor.
Mr. Bond 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:
Stanley V. Bond, Esq.
Bond Law Office
P.O. Box 1893
Fayetteville, AR 72702
Telephone: (479) 444-0255
Facsimile: (479) 235-2827
Email: attybond@me.com
About Shine Solar
Shine Solar LLC is engaged in the business of selling, installing,
and servicing residential solar panels, as well as selling and
installing home batteries. Additionally, the Debtor participates in
limited HVAC sales, installation, and related activities.
Shine Solar LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Ark. Case No. 25-70455) on March 17,
2025. In its petition, the Debtor reports total assets of
$6,937,104 and total liabilities of $8,062,957.
Honorable Bankruptcy Judge Bianca M. Rucker handles the case.
Stanley V. Bond, Esq., at the Bond Law Office serves as the
Debtor's counsel.
SHREE AMIRTAYA: Hires Joseph J. D'Agostino Jr. as Legal Counsel
---------------------------------------------------------------
Shree Amirtaya, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Connecticut to employ Joseph J. D'Agostino,
Jr., LLC as counsel.
The firm will render these services:
(a) advise the Debtor regarding its rights, duties and powers
in the operation and management of its affairs;
(b) advise and assist the Debtor with respect to financial
agreements, debt restructuring, cash collateral orders, and other
financial transactions;
(c) review and advise the Debtor regarding the validity of
liens asserted against its property;
(d) advise the Debtor as to actions to collect and recover
property for the benefit of its estate;
(e) prepare on behalf of the Debtor the necessary legal
documents, as well as review all financial reports and other
reports filed in its Chapter 11 case;
(f) counsel the Debtor in connection with all aspects of a
plan of reorganization and related documents; and
(g) perform all other legal services for the Debtor which may
be necessary in its Chapter 11 case.
The firm will be paid at these hourly rates:
Joseph D'Agostino, Jr., Attorney $350
Support Staff $150
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $5,000 from the Debtor.
Mr. D'Agostino 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:
Joseph J. D'Agostino, Jr.
Joseph J. D'Agostino, Jr., LLC
1062 Barnes Rd. 108
Wallingford, CT 06492
Telephone: (203) 265-5222
About Shree Amirtaya
Shree Amirtaya, LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Conn. Case No. 25-30181) on February 28,
2025, listing under $1 million in both assets and liabilities.
Joseph J. D'Agostino, Jr., LLC serves as the Debtor's counsel.
SHRIJEE LLC: Seeks Chapter 11 Bankruptcy in Wisconsin
-----------------------------------------------------
On March 24, 2025, Shrijee LLC filed Chapter 11 protection in the
U.S. Bankruptcy Court for the Eastern District of Wisconsin.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will not be available to unsecured creditors.
About Shrijee LLC
Shrijee LLC, d/b/a Econo Lodge and Days Inn by Wyndham Manitowoc,
provides accommodation and food services, operating under the names
Econo Lodge and Days Inn by Wyndham Manitowoc, offering lodging and
dining experiences to customers.
Shrijee LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D. Wis. Case No. 25-21511) on March 24, 2025. In
its petition, the Debtor reports estimated assets and liabilities
between $1 million and $1 million each.
The Debtor is represented by Noe J. Rincon, Esq. at KREKELER LAW,
S.C.
SHUBREW LLC: Hires Thompson Law Group as Bankruptcy Counsel
-----------------------------------------------------------
ShuBrew LLC seeks approval from the U.S. Bankruptcy Court for the
Western District of Pennsylvania to hire Thompson Law Group as its
attorneys.
The firm will provide these services:
(a) give legal advice with respect to the Debtor's powers and
duties;
(b) take all necessary action to protect and preserve the
Debtor's estate;
(c) prepare all necessary legal papers in connection with the
administration of the Debtor's estate;
(d) perform any and all other legal services for the Debtor in
connection with its Chapter 11 case; and
(e) perform such legal services as the Debtor may request with
respect to any matter appropriate in assisting its effort to
reorganize.
The firm will be paid at these hourly rates:
Attorney $350
Paralegals $90
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer of $10,000
from the Debtor.
Brian Thompson, Esq., an attorney at Thompson Law Group, 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:
Brian C. Thompson, Esq.
Thompson Law Group, PC
301 Smith Drive, Suite 6
Cranberry Township, PA 16066
Telephone: (724) 799-8404
Facsimile: (724) 799-8409
Email: bthompson@thompsonattorney.com
About ShuBrew LLC
ShuBrew LLC is a famous beer and brewery brand.
ShuBrew LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Pa. Case No. 25-20577) on March 6, 2025. In its
petition, the Debtor reports estimated assets ranging from $100,000
to $500,000 and liabilities between $500,000 and $1 million.
The Debtor is represented by Brian C. Thompson, Esq. at Thompson
Law Group, PC.
SILVER LINING: Seeks to Hire Larson & Zirzow as Bankruptcy Counsel
------------------------------------------------------------------
Silver Lining Advertising, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Nevada to employ the law firm
of Larson & Zirzow, LLC as bankruptcy counsel.
The firm will render these services:
(a) prepare all necessary or appropriate legal papers;
(b) take all necessary or appropriate actions in connection
with a plan of reorganization and all related documents, and such
further actions as may be required in connection with the
administration of the Debtor's estate;
(c) take all necessary actions to protect and preserve the
Debtor's estate; and
(d) perform all other necessary legal services in connection
with the prosecution of the Chapter 11 case.
The firm will be paid at these hourly rates:
Matthew Zirzow, Principal $650
Benjamin Chambliss, Associate Attorney $500
Patricia Huelsman, Paralegal $295
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a total pre-petition retainer of $30,000 from the
Debtor.
Mr. Zirzow disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Matthew C. Zirzow, Esq.
Larson & Zirzow, LLC
850 E. Bonneville Ave.
Las Vegas, NV 89101
Telephone: (702) 382-1170
Facsimile: (702) 382-1169
Email: mzirzow@lzlawnv.com
About Silver Lining Advertising
Silver Lining Advertising LLC is an advertising agency located in
Las Vegas, specializing in innovative mobile and digital marketing
strategies. The Company provides services such as mobile billboards
(both static and digital), street teams, walking billboards, and
the Vegas Vibe magazine, a local publication used for promotional
purposes. Additionally, Silver Lining runs a Concierge Program and
collaborates with notable clients like AREA15, Blue Man Group, and
Imagine Exhibitions.
Silver Lining Advertising LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-11398) on March
14, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Matthew C. Zirzow, Esq., at Larson & Zirzow, LLC serves as the
Debtor's counsel.
SINCLAIR INC: L. Rutishauser to Retire as EVP, CFO
--------------------------------------------------
On March 24, 2025, Sinclair, Inc., announced that Lucy A.
Rutishauser will retire from her position as Executive Vice
President & Chief Financial Officer after her successor is
appointed and transitions into the role. The search for a new
Chief Financial Officer will commence shortly. Following her
retirement, Ms. Rutishauser is expected to serve as a senior
advisor to the Company.
David Smith, Executive Chairman of Sinclair and Chairman of its
Board, commented, "Lucy has been an invaluable part of our team who
has seen it all. She helped lead us through multiple industry
consolidations and navigated through the Great Recession, the
pandemic and a cybersecurity ransomware incident. Lucy has clearly
communicated and explained our value proposition to Wall Street
investors and successfully managed complex capital market
transactions that gave us the flexibility to grow and transform the
Company. Lucy is an engaged leader with an incredible work ethic.
We appreciate her many contributions over the past 26 years that
helped position us as an industry leader."
Chris Ripley, President & CEO, stated, "We have been fortunate to
have someone of Lucy's caliber as part of our Executive team. She
is well-known and respected in the financial community having been
the face of the Company with Wall Street during her career. Lucy
has ensured that the Company is well-funded for the future, having
just completed an almost $4 billion comprehensive restructuring of
our balance sheet. She has been a mentor and a strong leader to the
organization who not only developed a best-in-class financial team
but also continuously educates herself. Her focus on fiscal
responsibility, as well as her approach to continuously challenge
our business leaders and staff to ask questions, dig deeper, and
innovate have not only raised their level of thinking,
problem-solving skills and financial acumen; but more importantly
have grown our bottom line. Lucy has graciously offered to continue
with us through the transition of the next CFO and thereafter in a
senior advisory role."
"This has been an incredibly rewarding journey for me, and I am
excited to focus on family and the next chapter of my career of
board service and advisory," commented Ms. Rutishauser. "I am
grateful to have been a part of the team that grew Sinclair into
the leader it is today, and for the amazing opportunities along the
way. While we have accomplished much over the years, the Company is
far from being done. Sinclair has a bright future ahead with
multiple industry-leading and value-creating initiatives and
support from a strong financial position and passionate and
creative employees. While I may be 'retiring,' I look forward to
supporting the next CFO and contributing thoughtful insights to the
Company in a senior advisory role."
Ms. Rutishauser has been with Sinclair since 1998 serving in
multiple leadership positions including Treasurer, Head of Investor
Relations, Senior Vice President of Corporate Finance, de facto
Chief Risk Officer, and since January 1, 2017 as Executive Vice
President & Chief Financial Officer.
Since becoming CFO, Ms. Rutishauser has been recognized for her
leadership including: "50 Women to Watch for Boards," The Daily
Record 2024 and 2022 "Maryland's Top 100 Women," Radio & TV
Business Report 2024, 2023, 2022 and 2019 "Best Finance Leaders,"
Cablefax 2022 and 2021 "Most Powerful Women," The Daily Record 2022
"Power 30," Cynopsis 2020 "Top Women in Media," Baltimore Sun 2020
"Top 25 Women to Watch," and Variety Magazine 2019 and 2017
"Dealmaker Elite."
Ms. Rutishauser serves on the Business Advisory Council for ATSC
(an international digital television standards organization); the
Board of CAST.ERA (developer of broadcast data distribution
solutions); the Board and Finance Committee of Learning Undefeated
(a non-profit dedicated to STEM education); the Board of First
Fruits Farm (a non-profit dedicated to growing and distributing
farm-sourced food to those in need); Stevenson University
President’s Advisory Council; and is a Trustee and Chair for
Sinclair’s Broadcast Scholarship. In 2021, Ms. Rutishauser
proudly served among the leadership ranks of fewer than 80 female
CFOs of the 500 largest revenue-based companies in the country. She
also holds a membership in the National Association of Corporate
Directors.
Employment Inquiries:
labrannen@sbgtv.com
About Sinclair Inc.
Headquartered in Hunt Valley, MD, Sinclair, Inc. is the operator
of
Tennischannel.com, one of the most popular sports streaming
services in the country dedicated to providing prerecorded and
live
coverage of tennis and other racquetball sports.
* * *
The Troubled Company Reporter reported on Jan. 17, 2025, that S&P
Global Ratings lowered the issuer credit rating on Sinclair Inc.
to
'B-' from 'B'.
At the same time, S&P lowered the issue-level rating on the
company's existing senior secured debt to 'B' from 'B+' and placed
it on CreditWatch with negative implications.
S&P also lowered the issue-level rating on the company's existing
senior unsecured debt to 'CCC' from 'CCC+'.
SINTX TECHNOLOGIES: Eric Olson Named Board Chair
------------------------------------------------
SINTX Technologies, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that the Board of
Directors appointed Eric K. Olson to the position of Chairman of
the Board of Directors. Mr. Olson was previously appointed to the
Company's Board of Directors on July 31, 2024.
In connection with Mr. Olson's appointment, B. Sonny Bal stepped
down as Chairman of the Board and continues to serve on the
Company's Board of Directors.
About SINTX Technologies
Headquartered in Salt Lake City, Utah, SINTX Technologies, Inc. —
https://ir.sintx.com/ — is an advanced ceramics company that
develops and commercializes materials, components, and technologies
for biomedical, technical, and antipathogenic applications. The
core strength of SINTX Technologies is the manufacturing, research,
and development of advanced ceramics for external partners.
Lehi, Utah-based Tanner LLC, the Company's auditor since 2017,
issued a "going concern" qualification in its report dated March
27, 2024, citing that the Company has recurring losses from
operations and negative operating cash flows and needs to obtain
additional financing to finance its operations. These issues raise
substantial doubt about the Company's ability to continue as a
going concern.
As of September 30, 2024, SINTX Technologies had $11.3 million in
total assets, $5.7 million in total liabilities, and $5.6 million
in total stockholders' equity.
SOAP BOX: Gets OK to Use Cash Collateral Until May 1
----------------------------------------------------
Soap Box Cleaners got the green light from the U.S. Bankruptcy
Court for the Northern District of California to use cash
collateral.
The order signed by Judge Hannah Blumenstiel authorized the company
to use cash collateral from March 21 to May 1 to pay the expenses
set forth in its budget, which projects total monthly expenses of
$61,539.68.
To protect their interests, secured creditors including U.S. Bank,
N.A., the U.S. Small Business Administration, Pacific Community
Ventures, and Funding Circle will be granted replacement liens,
with the same validity, priority, and enforceability as their
pre-bankruptcy liens.
As additional protection, U.S. Bank will receive a monthly payment
of $2,100.
Soap Box Cleaners was ordered to cure a $4,194.66 default to U.S.
Bank within 30 days from March 20.
U.S. Bank, N.A. is represented by:
David W. Brody, Esq.
Kenneth R. Shemwell, Esq.
Brody & Shemwell, APC
1350 Columbia Street, Suite 403
San Diego, CA 92101
Telephone: (619) 546-9200
Facsimile: (619) 546-9270
dbrody@brody-law.com
About Soap Box Cleaners
Soap Box Cleaners is engaged in the laundry and dry-cleaning
industry, providing laundry pickup and delivery services.
Soap Box Cleaners sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 25-30084) on January
31, 2025. In its petition, the Debtor reported between $100,000 and
$500,000 in assets and between $1 million and $10 million in
liabilities.
Eric J. Gravel, Esq., at The Law Offices of Eric J. Gravel is the
Debtor's legal counsel.
SORRENTO THERAPEUTICS: Court Rejects Shareholders' Discovery Bid
----------------------------------------------------------------
Alex Wolf of Bloomberg Lw reports that Sorrento Therapeutics Inc.
shareholders have no basis to appeal a bankruptcy court's decision
barring an extensive inquiry into whether the company's attorneys
attempted to leverage a romantic relationship involving the judge
who previously oversaw its bankruptcy case.
US District Judge Lee H. Rosenthal ruled Thursday, March 27, 2025,
that the shareholder committee was rightly denied an investigation
into company advisers, and the bankruptcy court's decision does not
constitute a final order eligible for appellate review.
The committee had appealed to the district court after the US
Bankruptcy Court for the Southern District of Texas issued its
ruling in December 2023.
About Sorrento Therapeutics
Sorrento Therapeutics, Inc. --
http://www.sorrentotherapeutics.com/
-- is a clinical and commercial stage biopharmaceutical company
developing new therapies to treat cancer, pain (non-opioid
treatments), autoimmune disease and COVID-19. Sorrento's
multimodal, multipronged approach to fighting cancer is made
possible by its extensive immuno-oncology platforms, including key
assets such as next-generation tyrosine kinase inhibitors ("TKIs"),
fully human antibodies ("G-MAB(TM) library"), immuno-cellular
therapies ("DAR-T(TM)"), antibody-drug conjugates ("ADCs"), and
oncolytic virus ("Seprehvec(TM)"). Sorrento is also developing
potential antiviral therapies and vaccines against coronaviruses,
including STI-1558, COVISHIELD(TM) and COVIDROPS(TM), COVI-MSCTM;
and diagnostic test solutions, including COVIMARK(TM).
Sorrento Therapeutics, Inc., and Scintilla Pharmaceuticals, Inc.,
sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No.
23-90085) on Feb. 13, 2023. Sorrento disclosed assets in excess of
$1 billion and liabilities of about $235 million as of Feb. 10,
2023.
Judge David R. Jones originally oversaw the cases.
The Debtors tapped Latham & Watkins, LLP as bankruptcy counsel;
Jackson Walker, LLP as local counsel; Tran Singh, LLP as conflicts
counsel; and M3 Advisory Partners, LP as financial advisor. Mohsin
Y. Meghji, managing partner at M3, serves as the Debtors' chief
restructuring officer. Stretto Inc. is the claims, noticing and
solicitation agent.
Norton Rose Fulbright US, LLP and Milbank, LLP represent the
official committee of unsecured creditors appointed in the Debtors'
Chapter 11 cases.
On April 10, 2023, the U.S. Trustee for Region 7 appointed an
official committee to represent the Debtors' equity security
holders.
On April 10, 2023, the U.S. Trustee for Region 7 appointed an
official committee to represent the Debtors' equity security
holders. Glenn Agre Bergman & Fuentes, LLP and Greenberg Traurig,
LLP serve as the equity committee's bankruptcy counsel.
SOUTHERN AUTO: Seeks to Hire Buckmiller & Frost as Attorney
-----------------------------------------------------------
Southern Auto Parts, Inc. received interim approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina to hire
Buckmiller & Frost, PLLC to handle the Chapter 11 proceedings.
The firm will be paid at these hourly rates:
Matthew W. Buckmiller $400
Joseph Z. Frost $375
Yorlibeth Martinez $300
Paralegals, Law Clerks, & Staff $65 to $160
The firm will receive a retainer in the amount of $27,000.
Buckmiller & Frost is a disinterested person within the meaning of
Sec. 101(14) of the Bankruptcy Code, according to court filings.
The firm can be reached through:
Joseph Z. Frost, Esq.
BUCKMILLER & FROST, PLLC
4700 Six Forks Road, Suite 150
Raleigh, NC 27609
Tel: (919) 296-5040
Fax: (919) 977-7101
Email: jfrost@bbflawfirm.com
About Southern Auto Parts, Inc.
Southern Auto Parts, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-00294-5-DMW) on
January 27, 2025. In the petition signed by Jared L. Beverage,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge David M. Warren oversees the case.
Joseph Z. Frost, Esq., at BUCKMILLER & FROST, PLLC, represents the
Debtor as legal counsel.
SOUTHERN CUTTERS: Seeks to Hire Bush Law Firm LLC as Legal Counsel
------------------------------------------------------------------
Southern Cutters Land Clearing and Hauling, LLC seeks approval from
the U.S. Bankruptcy Administrator for the Southern District of
Alabama to hire The Bush Law Firm, LLC as bankruptcy counsel.
The firm will provide these services:
a. advise the Debtor-in-Possession as to the rights, powers
and duties of a Debtor-in-Possession, as enumerated within 11
U.S.C. Sec. 1101, et seq.;
b. prepare and file the documents necessary to advance this
case including, but not limited to, answers, applications, motions,
proposed orders, responses, schedules, plans, objections and other
necessary documents;
c. attend the intake conference, the meeting of creditors and
hearings on behalf of the Debtor-in-Possession;
d. negotiate with the various classes of creditors with
respect to the plan of reorganization;
e. prepare, negotiate and advance a plan of reorganization or
liquidation, as applicable;
f. prepare and file the plan and status reports, as
applicable;
g. defend challenges to the automatic stay set forth within 11
U.S.C. Sec. 362(a); and
h. perform such other legal services.
The firm will be paid at these rates:
Attorneys $350 per hour
Paralegals $75 per hour
The Bush Law Firm has been paid a retainer of $10,000, plus $1,738
filing fee.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Anthony B. Bush, Esq., a partner at The Bush Law Firm, 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:
Anthony B. Bush, Esq.
The Bush Law Firm, LLC
Parliament Place Professional Center
3198 Parliament Circle 302
Montgomery, AL 36116
Tel: (334) 263-7733
Fax: (334) 832-4390
Email: anthonybbush@yahoo.com
abush@bushlegalfirm.com
About Southern Cutters Land Clearing and Hauling
Southern Cutters Land Clearing and Hauling, LLC filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D.
Ala. Case No. 25-10519) on February 26, 2025, listing up to $1
million in both assets and liabilities. The petition was signed by
Alicia N. Wolford as member.
Judge Henry A. Callaway oversees the case.
Anthony B. Bush, Esq., at the Bush Law Firm, LLC, represents the
Debtor as bankruptcy counsel.
SOUTHFIELD VENTURES: Sec. 341(a) Meeting of Creditors on April 29
-----------------------------------------------------------------
On March 26, 2025, Southfield Ventures LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Central District
of California. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on April 29,
2025 at 10:00 AM at UST-SVND2, TELEPHONIC MEETING. CONFERENCE
LINE:1-866-820-9498, PARTICIPANT CODE:6468388.
About Southfield Ventures LLC
Southfield Ventures LLC owns the property located at 28100 Franklin
Road, Southfield, MI 91356.
Southfield Ventures LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal.Case No. 25-10474) on March 26,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Victoria S. Kaufman handles the case.
The Debtor is represented by Bruce R. Babcock, Esq. at LAW OFFICE
OF BRUCE R. BABCOCK.
SPD 2010: Seeks to Hire Korenblit & Vasserman as Special Counsel
----------------------------------------------------------------
SPD 2010, LLC seeks approval from the U.S. Bankruptcy Court for the
Eastern District of New York to hire Korenblit & Vasserman, PLLC as
its special counsel.
Korenblit will handle the real estate closing of the sale of the
Debtor's property located at 142 Joralemon Street, Brooklyn,
Storefront, New York 11201.
The firm will receive a flat fee of $2,500 for its services.
Korenblit is a "disinterested person" as that term is defined in
the Bankruptcy Code and does not hold or represent an interest
adverse to the Debtor or its estate, according to court filings.
The firm can be reached through:
Irine Korenblit, Esq.
Korenblit & Vasserman, PLLC
626 Sheepshead Bay Rd Suite 730
Brooklyn, NY 11224
Phone: (718) 336-3390
About SPD 2010 LLC
SPD 2010, LLC sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-44982) on
November 27, 2024, with $1 million to $10 million in assets and
$100,000 to $500,000 in liabilities. The petition was signed by
Svetlana Kibrik, sole owner, member and president of SPD 2010.
The Debtor is represented by Sari B. Placona, Esq. at McManimon,
Scotland & Baumann, LLC represents the Debtor as counsel.
SS&C TECHNOLOGIES: Egan-Jones Retains BB Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on March 17, 2025, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by SS&C Technologies Holdings, Inc. EJR also withdrew
its rating on commercial paper issued by the Company.
Headquartered in Windsor, Connecticut, SS&C Technologies Holdings,
Inc. develops and markets computer software for financial services
providers.
STARWOOD PROPERTY: Moody's Rates New $400MM Unsecured Notes 'Ba3'
-----------------------------------------------------------------
Moody's Ratings has assigned a Ba3 rating to Starwood Property
Trust, Inc.'s (STWD) new $400 million senior unsecured
sustainability notes due 2030. Net proceeds from the transaction
will be used for general corporate purposes which may include
paying down existing secured financing facilities. Starwood
Property Trust, Inc.'s Ba2 corporate family rating and Ba3 senior
unsecured ratings, and Starwood Property Mortgage, LLC's Ba2 senior
secured bank credit facility ratings were unaffected by this
transaction. Starwood Property Trust, Inc.'s outlook is stable.
RATINGS RATIONALE
The Ba3 rating assigned to STWD's senior unsecured debt reflects
its effectively subordinated, lower priority of claim on the
company's earning assets compared to secured lenders.
STWD's Ba2 CFR reflects the company's track record of strong asset
quality, prominent competitive position in multiple commercial real
estate (CRE) businesses that provide greater revenue diversity
compared to peers, effective liquidity management, and its
affiliation with Starwood Capital Group, the well-established CRE
investment and asset management firm. STWD has diverse funding
sources and a manageable distribution of debt maturities. It
maintains a solid capital cushion given the composition of its
earning assets, although increasing investment activity could lead
to a modest rise in leverage. STWD's ratings are constrained by its
reliance on confidence-sensitive secured funding and its high
exposure to the inherent cyclicality of the CRE industry.
The stable outlook reflects Moody's views that although there may
be weakening in asset quality as a result of ongoing challenges in
the CRE industry, STWD's capital position and funding profile will
remain stable over the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's could upgrade STWD's ratings if the company: 1) further
diversifies its funding sources to include additional senior
unsecured debt and lower reliance on market-sensitive repurchase
facilities; 2) maintains strong, stable profitability and low
credit losses; and 3) maintains a strong capital position.
STWD's ratings could be downgraded if the company: 1) experiences a
material deterioration in asset quality; 2) weakens its capital
position; 3) increases exposure to volatile funding sources or
otherwise encounters material liquidity challenges; 4) rapidly
accelerates growth; or 5) suffers a sustained decline in
profitability. A material increase in recourse secured indebtedness
could also lead to a downgrade of STWD's long-term senior unsecured
rating.
The principal methodology used in this rating was Finance Companies
published in July 2024.
STEWARD HEALTH: Fights w/ Creditors Over $60MM Compensation Plan
----------------------------------------------------------------
Emily Lever of Law360 Bankruptcy Authority reports that Steward
Health, a struggling hospital operator, fought with healthcare
providers in a Texas bankruptcy court on March 26 and 27, 2025,
over control of two delayed compensation trusts valued at $60
million, debating whether the plans are protected under the
Employee Retirement Income Security Act.
About Steward Health Care
Steward Health Care System, LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024. Judge
Christopher M. Lopez oversees the cases.
The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy
counsel; McDermott Will & Emery as special corporate and regulatory
counsel; AlixPartners, LLP as financial advisor and John Castellano
of AlixPartners as chief restructuring officer. Lazard Freres & Co.
LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc., provide investment banking services to the
Debtors. Kroll is the claims agent.
Susan N. Goodman is the patient care ombudsman appointed in the
Debtors' cases.
STICKY'S HOLDINGS: Wants to Secure Ch. 11 Victory Against the Odds
------------------------------------------------------------------
Emlyn Cameron of Law360 Bankruptcy Authority reports that Sticky's,
a popular New York-area chicken chain, has asked a Delaware
bankruptcy judge for approval to finalize agreements with a
Southern-style restaurant chain and an investment firm in a
last-ditch effort to sell its assets in Chapter 11.
The Troubled Company Reporter on Feb. 13, 2025, citing James Nani
of Bloomberg Law, reported that the operator of New York-area
restaurant chain Sticky's Finger Joint is seeking to convert its
bankruptcy reorganization into a liquidation, blaming financial
struggles on a harsh December cold snap and New York City's
congestion pricing plan.
In a motion filed Monday, February 10, 2024, in the U.S.
Bankruptcy
Court for the District of Delaware, Sticky's Holdings LLC
requested
to shift its Chapter 11 case to Chapter 7, citing insufficient
cash
flow to cover bankruptcy costs or fulfill creditor payments. The
company also noted its inability to secure additional financing.
About Sticky's Holdings
Sticky's Holdings LLC and its affiliates operate a chain of
restaurants in New York and New Jersey.
The Debtors filed Chapter 11 petitions (Bankr. D. Del. Lead Case
No. 24-10856) on April 25, 2024. In the petitions signed by Jamie
Greer, CEO, Sticky's Holdings disclosed $5,754,177 in total assets
and $4,677,476 in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped John W. Weiss, Esq., at Pashman Stein Walder
Hayden, PC as legal counsel and Kurtzman Carson Consultants LLC as
administrative advisor.
STOLI GROUP: Court OKs Modifications to Final Cash Collateral Order
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
approved a stipulation entered into by Stoli Group (USA), LLC and
Kentucky Owl, LLC to modify the final order, which authorized the
companies' use of Fifth Third Bank, N.A.'s cash collateral.
The stipulation modifies a provision of the final order governing
the companies' obligations to make payments to Fifth Third Bank.
The modified provision requires the companies to, among other
things, remit a $250,000 cash payment to the lender this month.
Any failure by the companies to comply with the terms and
conditions of the stipulation constitutes an event of default under
the final order.
Fifth Third Bank can be reached through its counsel:
Brent McIlwain, Esq.
Christopher A. Bailey, Esq.
Holland & Knight, LLP
1722 Routh Street, Suite 1500
Dallas, TX 75201
Telephone: 214.969.1700
Email: brent.mcilwain@hklaw.com
chris.bailey@hklaw.com
-- and --
Jeremy M. Downs, Esq.
Steven J. Wickman, Esq.
Goldberg Kohn, Ltd.
55 East Monroe Street, Suite 3300
Chicago, IL 60603
Telephone: 312.201.4000
Email: jeremy.downs@goldbergkohn.com
steven.wickman@goldbergkohn.com
About Stoli Group (USA) LLC
Stoli Group (USA), LLC is a producer, manager, and distributor of a
global portfolio of spirits and wines.
Stoli Group (USA) and Kentucky Owl, LLC filed Chapter 11 petitions
(Bankr. N.D. Texas Lead Case No. 24-80146) on November 27, 2024. At
the time of the filing, Stoli Group (USA) reported $100 million to
$500 million in assets and $10 million to $50 million in
liabilities while Kentucky Owl reported $50 million to $100 million
in assets and $50,000,001 to $100 million in liabilities.
Judge Scott W. Everett handles the cases.
The Debtors are represented by:
Holland N. O'Neil, Esq.
Foley & Lardner LLP
Tel: 214-999-4961
Email: honeil@foley.com
SUNATION ENERGY: Repays and Terminates Multiple Loan Agreements
---------------------------------------------------------------
SUNation Energy Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that it has repaid and
terminated multiple loan agreements, eliminating all remaining
obligations under these agreements.
Decathlon Fixed Loan Repayment and Termination:
On June 1, 2023, the Company entered into a Revenue Loan and
Security Agreement with Decathlon Specialty Finance, LLC. The Loan
Agreement provided for a loan facility for the Company in the
maximum amount of $7.5 million with an original maturity date of
June 1, 2027. The Decathlon Loan Agreement was repayable in fixed
monthly payments to the maturity date with $2,580,000 payable in
2025, $2,760,000 payable in 2026 and $3,480,000 payable in 2027 to
the maturity date. As of March 3, 2025, the remaining aggregate
balance, together with accrued principal and interest, remaining
under this Loan agreement was $6,740,516; however, the parties to
the Loan Agreement recently agreed to a reduced aggregate repayment
amount of $6,229,875 if voluntarily repaid early in full.
On February 27, 2025, the Company consummated the first tranche of
a securities offering for gross proceeds of $15 million. Using a
portion of the proceeds from the Equity Offering, the Company
voluntarily repaid in full all of the accrued principal and
interest due to Decathlon in the reduced aggregate noted above. As
a result of this complete repayment, the Decathlon Loan Agreement
has been terminated (together with other agreements and instruments
related thereto), and no further monthly or other payments or
remuneration of any kind shall be paid or be payable following the
termination of this Loan Agreement, and no early termination
penalties or prepayment premium were incurred by the Company in
connection with the termination of this Laon Agreement.
Hercules Loan Repayment and Termination:
The Company entered into a loan agreement on December 11, 2020 in
an original amount of $7,500,000 payable to Hercules Capital, Inc.
under a loan and security agreement, with an amended Maturity Date
of June 2, 2027. On July 22, 2024, the Term Loan Agreement was
further amended, primarily for the purpose of obtaining consent for
the bridge loan financing from Conduit Capital U.S. Holdings LLC
and MBB Energy, LLC. The Company also entered into a Joinder and
Amendment to Subordination Agreement among Decathlon, Hercules
Capital, Inc., Conduit and MBB. The Company was making monthly
principal and interest payments in the aggregate amount of
approximately $49,000 pursuant to the Term Loan Agreement.
As of March 3, 2025, the loan and accrued interest balance was
$1,230,555; however, the parties to the Term Loan Agreement
recently agreed to a reduced aggregate repayment amount of
$1,138,263 if voluntarily repaid early in full. Following the
consummation of the Equity Financing, the Company used a portion of
the proceeds therefrom to voluntarily repay in full all of the
accrued principal and interest due to Hercules in the (reduced)
aggregate noted above. As a result of this complete repayment, the
Term Loan Agreement has been terminated (together with other
agreements and instruments related thereto), and no further monthly
or other payments or remuneration of any kind shall be paid or be
payable following the termination of this Term Loan Agreement, and
no early termination penalties or prepayment premium were incurred
by the Company in connection with the termination of this Loan
Agreement.
Conduit Capital Bridge Loan Repayment and Termination:
On July 22, 2024, the Company obtained bridge loan financing for
working capital purposes from Conduit Capital U.S. Holdings LLC, an
unaffiliated lender in the principal sum of $500,000 to the Company
on an original issue discount basis of 20% and accordingly, Conduit
advanced $400,000 to the Company, with a maturity date of July 21,
2025. The Original Conduit Note allowed for additional advances to
the Company for working capital on identical terms, conditions and
interest rate as the Initial Conduit Loan up to an aggregate
principal sum of $500,000. On September 9, 2024, the Company and
Conduit entered into an Amended and Restated Convertible Secured
Note which provided for an additional principal advance of
$120,000. On September 23, 2024, the Company took a third advance
in the amount of $380,000 on the same financial terms as the Second
Conduit Advance.
In accordance with the terms of the Conduit loan agreements, if the
Company were to consummate one or more equity offerings prior to
the Maturity Date in which it derives aggregate gross proceeds of
at least $3.15 million, it will be required to repay the unpaid
principal balance of the Initial Conduit Loan, simultaneous with
the closing(s) of such offering(s), and if the Company consummates
one or more equity offerings prior to the Conduit Maturity Date in
which it derives aggregate gross proceeds of at least $4.4 million,
the Company will be required to repay the entire unpaid principal
amount of all loans due to Conduit, simultaneous with the
closing(s) of such offering(s).
As of February 28, 2025, the aggregate Conduit Note, as amended,
balance was $1,000,000, which was repaid in full from a portion of
the proceeds of the Equity Offering following the consummation
thereof. As a result of this complete repayment, the Conduit Note,
as amended, has been terminated, and no further principle,
interest, accrual or conversion of any securities thereunder remain
payable to Conduit following the repayment and related termination
of the Conduit loan agreement(s).
MBB Energy Bridge Loan Repayment and Termination:
On July 22, 2024, the Company obtained bridge loan financing for
working capital purposes from MBB Energy, LLC, an affiliate of the
Company in the principal sum of $500,000 to the Company on an
original interest discount basis of 20% and, accordingly, MBB
advanced the sum of $400,000 to the Company, with a maturity date
of July 21, 2025. On August 16, 2024, the Company took a second
advance in the amount of $500,000 on the same financial terms as
the Initial MBB Loan.
In accordance with the terms of the MBB loan agreements, if the
Company were to consummate one or more equity offerings prior to
the Maturity Date in which it derives aggregate gross proceeds of
at least $3.15 million, it will be required to repay the unpaid
principal balance of the Initial MBB Loan, simultaneous with the
closing(s) of such offering(s), and if the Company consummates one
or more equity offerings prior to the Maturity Date in which it
derives aggregate gross proceeds of at least $4.4 million, the
Company will be required to repay the entire unpaid principal
amount of all loans due to MBB, simultaneous with the closing(s) of
such offering(s).
As of February 28, 2025, the aggregate MBB loan balance was
$1,000,000, which was repaid in full from a portion of the proceeds
of the Equity Offering following the consummation thereof. As a
result of this complete repayment, the MBB Note has been terminated
and no further principle, interest or accrual thereunder remain
following the repayment and related termination of the MBB loan
agreement(s).
The repayment and termination of the above-described secured loan
agreements eliminates all monthly payment obligations, which in the
aggregate is expected to result in a substantial monthly operating
cash savings, and also removes certain material restrictive
covenants which were contained in the respective loan agreements.
This is anticipated to give the Company added flexibility in
considering any potential acquisitions, structuring future
financing options related thereto and it will result in freeing up
cashflow for operational activities in the ordinary course of our
business.
About SUNation Energy,
fka Pineapple Energy Inc.
SUNation Energy Inc., formerly known as Pineapple Energy Inc. is
focused on growing leading local and regional solar, storage, and
energy services companies nationwide.
Melville, N.Y.-based UHY LLP, the Company's auditor since 2023,
issued a "going concern" qualification in its report dated March
29, 2024, citing that the Company's current financial position and
the Company's forecasted future cash flows for 12 months beyond the
date of issuance of the financial statements indicate that the
Company will not have sufficient cash to make the first SUNation
earnout payment in the second quarter of 2024 or the first
principal payment of the Long-Term Note due on November 9, 2024,
factors which raise substantial doubt about the Company's ability
to continue as a going concern.
SUNNOVA ENERGY: Enacts Tax Plan to Protect Shareholder Value
------------------------------------------------------------
Dale Quinn of Bloomberg News reports that Sunnova's board has
implemented a tax asset preservation plan to protect shareholder
value by ensuring the continued availability of the company's net
operating loss (NOL) carryforwards.
As of December 31, 2024, Sunnova had approximately $1.4 billion in
U.S. federal NOLs, which could be used to offset future taxable
income, according to a company statement.
However, the company's ability to utilize these NOLs would be
restricted if its "5-percent shareholders" collectively increased
their ownership by more than 50 percentage points over a rolling
three-year period.
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.
SUNSHINE PEDIATRICS: Hires Parker Schwartz as Bankruptcy Counsel
----------------------------------------------------------------
Sunshine Pediatrics PC seeks approval from the U.S. Bankruptcy
Court for the District of Arizona to hire Lawrence D. Hirsch of
Parker Schwartz, PLLC, as counsel.
The firm's services include negotiating and formulating a Chapter
11 plan of reorganization for the Debtor and legal advice regarding
the Debtor's responsibilities under the Bankruptcy Code.
The firm will be paid at these rates:
Lawrence D. Hirsch, Attorney $550 per hour
Jared G. Parker, Attorney $550 per hour
Iva S. Hirsch, Attorney $400 per hour
Byron H. Forrester, Attorney $325 per hour
Elisabeth Maron, Paralegal $165 per hour
The retainer for the filing of the Subchapter V Chapter 11 is
$10,000.
As disclosed in court filings, Parker Schwartz is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Lawrence D. Hirsch, Esq.
Parker Schwartz, PLLC
7310 North 16th Street, Suite 330
Phoenix, AZ 85020
Tel: (602) 282-0476
Fax: (602) 282-0478
Email: lhirsch@psazlaw.com
About Sunshine Pediatrics PC
Sunshine Pediatrics PC is a pediatric healthcare practice in
Phoenix, AZ, offering comprehensive care for children from newborns
to young adults. With a focus on family-centered wellness and
prevention, it provides services such as sick visits, vaccinations,
allergy testing, and asthma management.
Sunshine Pediatrics PC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-01927)
on March 6, 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 Lawrence D. Hirsch, Esq. at PARKER
SCHWARTZ, PLLC.
SURVWEST LLC: Trustee Hires Newpoint Advisors as Accountant
-----------------------------------------------------------
Ken Yager, the Trustee for Survwest, LLC, seeks approval from the
U.S. Bankruptcy Court for the District of Colorado to employ
Newpoint Advisors Corporation as accountant.
The firm will provide these services:
a. assist the Trustee in preparing financial disclosures
required by the Court, including any revisions/adjustments to the
Debtor's Schedules of Assets and Liabilities, any potential
revisions/adjustments to Statements of Financial Affairs, Monthly
Operating reports, and Rule 2015.3 Reports;
b. assist in preparing or reviewing Debtor's financial
information, including, but not limited to, analyzing cash receipts
and disbursements, financial statement items, and proposed
transactions for which Court approval is sought;
c. prepare enterprise, asset, and liquidation valuations;
d. assist with the analysis, tracking, and reporting for any
financing arrangements and budgets;
e. assist with identifying and implementing potential cost
containment opportunities;
f. assist in reviewing Debtor's business and financial
condition generally;
g. coordinate efforts to obtain debtor-in-possession
financing;
h. attending meetings and assist in discussions with potential
investors, banks, and other lenders, any official committee(s)
appointed in this case, the United States Trustee, other parties in
interest and their professionals, as requested;
i. communicate and negotiate with Debtor's creditor
constituents to aid the Trustee in maximizing recovery for all
stakeholders;
j. assist in the preparation of information and analysis
necessary for the confirmation of a Chapter 11 plan, including
information contained in the disclosure statement, if confirmation
of a plan is found to be advisable by the Trustee;
k. provide forensic accounting services necessary to determine
the disposition of the Debtor's assets and assist counsel in
developing litigation claims which may be estate property;
l. assist with accounting services and coordination with any
sale process for any sale of assets;
m. coordinate workflow administration between the Trustee's
professionals and creditor constituencies and their professionals;
n. assist the Trustee with the day-to-day, short-term, and
long-term management of the bankruptcy process, including
evaluating strategic and tactical options with respect to
management of the reorganization of operations and sale of Debtor's
assets; and
o. render such other assistance as the Trustee or his retained
professionals may deem necessary consistent with the role of an
accountant to the extent that it would not be duplicative of
services provided by other professionals in this preceding.
The firm will be paid at these rates:
Scott Caruthers $395 per hour
Carin Sorvik $365 per hour
Matthew Brash $415 per hour
Analysts $325 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Scott Caruthers, a partner at Newpoint Advisors Corporation,
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:
Scott Caruthers
Newpoint Advisors Corporation
750 Old Hickory Blvd Building 2, Suite 150
Brentwood, TN 37027
Tel: (800) 306-1250
Fax: (702) 543-3881
About SurvWest LLC
SurvWest LLC, formerly known as SurvTech Solutions LLC, is a
diversified engineering firm specializing in surveying and mapping;
subsurface utility engineering (SUE); and utility coordination for
clients across the United States.
SurvWest filed a Chapter 11 petition (Bankr. D. Colo. Case No.
24-15214) on September 6, 2024, with total assets of $7,301,456 and
total liabilities of $9,447,402. Mathew Barr, president, signed the
petition.
Judge Thomas B. Mcnamara handles the case.
The Debtor is represented by David Wadsworth, Esq., at Wadsworth
Garber Warner Conrardy, P.C.
TD&H INC: Hearing on Bid to Use Cash Collateral Set for April 1
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of North
Carolina, Greensboro Division is set to hold a hearing on April 1
to consider another extension of TD&H, Inc.'s authority to use cash
collateral.
The company's authority to use cash collateral pursuant to its
March 21 order expires on April 1.
The March 21 order granted the company's secured creditors,
including Truist Bank, Vox Funding, Knightsbridge Funding, LLC and
LG Funding, LLC, post-petition replacement liens on the company's
post-petition property, with the same validity, priority, and
enforceability as their pre-bankruptcy liens.
In addition, Truist Bank will receive payment of $4,076 during the
interim period.
About TD&H Inc.
TD&H, Inc. filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-10392) on June
25, 2024, listing $652,317 in assets and $2,207,775 in
liabilities.
The petition was signed by Huntly Nero, president.
Judge Benjamin A. Kahn presides over the case.
Samantha K. Brumbaugh, Esq. at Ivey, Mcclellan, Siegmund, Brumbaugh
& Mcdonough, LLP represents the Debtor as legal counsel.
TEAM MUV: Seeks to Hire Black Helterline as Bankruptcy Counsel
--------------------------------------------------------------
Team MUV Fitness Troutdale LLC seeks approval from the U.S.
Bankruptcy Court for the District of Oregon to employ Black
Helterline LLP as chapter 11 counsel.
The professional services BH is expected to provide include,
without limitation, advising the Debtor with advice of its duties
and responsibilities as a debtor-in-possession, preparing and
filing schedules, filing and responding to motions, analysis of
filed claims, formulation and approval of a plan of reorganization
or liquidation and related disclosure statement, negotiations with
creditors and other parties in interest in connection with
foregoing, and other matters requiring legal representation of the
Debtor in this Chapter 11 Case.
Black Helterline holds a retainer of $85,261.50.
Black Helterline is a disinterested person as defined in 11 USC
Sec. 101(14), according to court filings.
The firm can be reached through:
Oren B. Haker, Esq.
BLACK HELTERLINE LLP
805 SW Broadway, Suite 1900
Portland, OR 97205
Telephone: (503) 224-5560
Facsimile: (503) 224-6148
Email: oren.haker@bhlaw.com
About Team MUV Fitness Troutdale LLC
Team MUV Fitness Troutdale LLC is a fitness center located at 2469
SW Cherry Park Road in Troutdale, Oregon. It offers a variety of
amenities, including cardio and strength training equipment, group
fitness classes like Boot Camp, Zumba, and yoga, an indoor swimming
pool, basketball and pickleball courts, and onsite childcare
services.
Team MUV Fitness Troutdale LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Or.Case No. 25-30476) on
February 17, 2025. In its petition, the Debtor reports estimated
assets between $500,000 and $1 million and estimated liabilities
between $1 million and $10 million.
Honorable Bankruptcy Judge Teresa H. Pearson handles the case.
The Debtor is represented by Oren B. Haker, Esq. at BLACK
HELTERLINE LLP.
TELEPHONE AND DATA: Egan-Jones Retains B+ Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on March 21, 2025, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Telephone and Data Systems, Inc. EJR also withdrew
its rating on commercial paper issued by the Company.
Headquartered in Chicago, Illinois, Telephone and Data Systems,
Inc. is a diversified telecommunications company.
TERADATA CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on March 13, 2025, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Teradata Corporation.
Headquartered in San Diego, California, Teradata Corporation
operates as a database management company in the technology
industry.
THORNCO HOSPITALITY: Unsecureds to Get $10K per Month for 60 Months
-------------------------------------------------------------------
Thornco Hospitality LLC filed with the U.S. Bankruptcy Court for
the Northern District of Texas a Disclosure Statement for Plan of
Reorganization dated March 5, 2025.
The Debtor operates a "Homewood Suites by Hilton" hotel on land it
owns at 12150 Grant St., Thornton, Colorado 80241 (the "Hotel").
While the Hotel was under construction prior to the filing of this
case, the Debtor became unable to fully service its secured debt,
which led to the filing of this case.
State Bank of Texas had put a receiver in place to assist with the
completion of the hotel and its operations. Before the hotel was
complete the Bank elected to foreclose on the property. This
Bankruptcy case was filed at least in part to stop the foreclosure
sale.
The Debtor owns the real property improved by the Hotel with a
scheduled value of $30,600,000.00. The Debtor believes the current
value of the Hotel is $25,000,000.00.
Post-Confirmation management of the Debtor shall continue to be
Larry Williams, the CRO. Mr. Williams will receive post
Confirmation compensation of $5,000.00 per month.
As shown by the chart, in a Chapter 7 liquidation Secured Claims
would be paid only in part and Unsecured Claims would receive
nothing. Under this Plan, however, Allowed Secured Claims will be
paid and Unsecured Creditors will receive a Pro Rata share of a
pool of funds contributed by the Debtor as well as a future equity
participation in the Debtor. Therefore, Creditors will receive at
least as much under this Plan as they would in a Chapter 7
liquidation.
Class 4 consists of Allowed Unsecured Claims. These Claims shall be
satisfied by the monthly distribution of each Claimant's Pro Rata
share of a pool of $10,000.00 per month funded by the Debtor's
operations, for a period of sixty months from the Effective Date.
These Claims are Impaired, and the holders of these Claims are
entitled to vote to accept or reject the Plan.
Class 5 consists of Equity Interests. Equity Interests shall be
cancelled. Class 5 Interests shall receive no dividends or other
distributions on these Interests until Classes 1 to 4 paid pursuant
to the terms of this Plan. The Equity Interests shall be allocated
pro-rata to the Claimants in Class 1, 2 and 3 based on their pro
rata shares on the unsecured debt. For example, if State Bank of
Texas has 60% of the total unsecured debt in the case it will
receive 60% of the Equity Interests going forward.
This Plan will be substantially consummated by the commencement of
payments as called for. The Debtor intends to make all payments
required under the Plan from the net profits earned from the
operation of the Hotel.
A full-text copy of the Disclosure Statement dated March 5, 2025 is
available at https://urlcurt.com/u?l=CLBYAt from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Telephone: (972) 503-4033
Facsimile: (972) 503-4034
About Thornco Hospitality
Thornco Hospitality, LLC, owns and operates a hotel identified as
Homewood Suites by Hilton Thornton Denver.
Thornco Hospitality filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No.
24-33596) on Nov. 5, 2024, listing $10 million to $50 million in
both assets and liabilities. The petition was signed by Nimrat Kaur
as managing member.
Judge Scott W Everett presides over the case.
Joyce W. Lindauer, Esq., at JOYCE W. LINDAUER ATTORNEY, PLLC, is
the Debtor's counsel.
TINKER REAL ESTATE: Gets OK to Hire Maximum One Realty as Broker
----------------------------------------------------------------
Tinker Real Estate Investments LLC received approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ
Maximum One Realty Greater Atlanta as real estate agent.
The firm will market and sell the Debtor's property located at 6205
Arnall Court Northwest. Acworth, GA 30101.
The broker will receive a commission equal to 6 percent of the
gross sales price.
Tonette Moore, a broker with Maximum One Realty Greater Atlanta,
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.
Maximum One Realty may be reached at:
Tonette Moore
Maximum One Realty Greater Atlanta
1355 Terrell Mill Rd, Bldg 1464
Marietta, GA 30067
Phone: (770) 919-8825 ext. 895
E-mail: moorealthomes@yahoo.com
About Tinker Real Estate Investments LLC
Tinker Real Estate Investments LLC is a single asset real estate
debtor, as defined in 11 U.S.C. Section 101(51B).
Tinker Real Estate Investments LLC sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-52199) on
February 28, 2025. In its petition, the Debtor reports estimated
assets between $1 million and $10 million and estimated liabilities
between $500,000 and $1 million.
The Debtor is represented by Paul Reece Marr, Esq., at PAUL REECE
MARR, P.C.
TINY FROG: Seeks Chapter 11 Bankruptcy in North Carolina
--------------------------------------------------------
On March 25, 2025, Tiny Frog Inc. filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Eastern 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 Tiny Frog Inc.
Tiny Frog Inc. operates multiple franchise locations of Hwy 55
Burger Shakes & Fries, a fast-casual dining chain specializing in
burgers, shakes, and fries, under franchise agreements with The
Little Mint, Inc.
Tiny Frog Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-01081) on March 25,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Joseph N. Callaway handles the case.
The Debtor is represented by David F. Mills, Esq. at NARRON WENZEL,
P.A.
TOOLIPIS CREATIVE: Unsecureds to Get 100 Cents on Dollar in Plan
----------------------------------------------------------------
Toolipis Creative Inc. filed with the U.S. Bankruptcy Court for the
Central District of California a Plan of Reorganization for Small
Business dated March 5, 2025.
The Debtor is a corporation managed by one employee and owner,
Joung Lee. It is a service company involved in business
consulting.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of at least $1,258,203. The
final Plan payment is expected to be paid on 36 months after the
effective date.
This Plan of Reorganization proposes to pay creditors of the Debtor
from assets on hand and ongoing income.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 100 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 3A consists of Non-Insider Unsecured General Non-Priority
Claims. In total, the claims equal to $183,203.08.
Class 3B consists of Insider General Unsecured Non-Priority Claims.
All non-priority general unsecured claims total $125,000.
Claims re impaired in Class 3A and 3B in that any secured claims
will be treated as unsecured obligations and not be entitled to
interest, and no unsecured claims will be paid interest. The
principle of these claims will be paid in full.
Class 4 equity security holders will receive interest in the Debtor
after all other claims are addressed.
The Plan will be funded from the Debtor's income. The Debtor's
income consists of collections upon A/R derived from prior work
performed on the acquisition of Employment Retention Credits
("ERC") on behalf of clients, current activities on the collection
of Self Employment Tax Credits (""SETC) for current clients, other
miscellaneous consulting work and investment with new business
activities. Estimated A/R as of the time of this Plan is
approximately $3,000,000 over the next 1 to 3 years.
A full-text copy of the Plan of Reorganization dated March 5, 2025
is available at https://urlcurt.com/u?l=MxS91N from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Anerio Ventura Altman, Esq.
Lake Forest Bankruptcy
P.O. Box 515381
Los Angeles, CA 92610
Tel: (949) 218-2002
Email: avaesq@lakeforestbkoffice.com
About Toolipis Creative Inc.
Toolipis Creative Inc., d/b/a Upper Partners, assists its clients
in applying for the ERC in accordance with the accurate IRS
guideline. It specializes in helping various sizes of businesses
receive their maximum tax refunds through the Employee Retention
Credit program (ERC) and the Self Employed Tax Credit Program
(SETC).
Toolipis Creative Inc. sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11996)
on Aug. 8, 2024. In the petition filed by Joung Hun Lee, as CEO,
the Debtor reports total assets of $529,572 and total liabilities
of $1,977,145.
Honorable Bankruptcy Judge Theodor Albert handles the case.
The Debtor is represented by Anerio Ventura Altman, Esq. at LAKE
FOREST BANKRUPTCY.
TOP ACES: DBRS Gives BB(low) Issuer Rating, Trend Stable
--------------------------------------------------------
DBRS Limited assigned an Issuer Rating of BB (low) with a Stable
trend to Top Aces Inc. (Top Aces or the Company). Concurrently,
Morningstar DBRS assigned a provisional credit rating of (P) B
(high) to the Company's proposed Senior Unsecured Notes (the
Proposed Notes), based on a Recovery Rating of RR5.
KEY CREDIT RATING CONSIDERATIONS
The credit ratings are supported by Top Aces' solid market position
in the niche markets of Adverse Air (ADAIR) and Close Air Support
(CAS) combat training services for armed forces mainly in Canada,
Europe, and the United States, contracted revenue streams, strong
safety record, technological capabilities, favorable industry
tailwinds, and relatively conservative financial management
practices. The credit ratings also reflect the considerable
spending requirements related to fleet maintenance and contract
growth, risks associated with customer concentration, as well as
uncertainties around existing contract renewals, and future
contract growth.
Top Aces is proposing to issue approximately $175 million of senior
unsecured notes (the Proposed Notes). The proceeds of the issuance
will be used to repay amounts related to the Company's existing
debt obligations. The Proposed Notes will be guaranteed by all
material subsidiaries of the Company. The Proposed Notes will be
unsecured obligations ranking equal with all existing and future
unsecured indebtedness of Top Aces but will effectively be
subordinated to any secured indebtedness of the Company. As part of
the Proposed Notes issuance, the Company will also put in place a
new $175 million Secured Revolving Credit Facility (the Secured
Revolver). Credit metrics are not expected to materially change
immediately after the Proposed Notes issuance. The Recovery Rating
of RR5 on the Proposed Notes assumes the Secured Revolver is fully
drawn and reflects the Secured Revolver's first-lien position.
CREDIT RATING DRIVERS
Morningstar DBRS could take a positive credit rating action should
Top Aces materially strengthen its business risk profile, primarily
through increasing its size and customer diversification, without
necessarily requiring an improvement in key credit metrics to do
so. Conversely, should key credit metrics materially deteriorate in
aggregate for a sustained period (i.e., debt-to-EBITDA increase
toward 4.5 times (x)) because of weaker-than-expected operating
performance and/or more aggressive financial management, the credit
ratings could be pressured. That said, weaker-than-expected
operating performance for a sustained period, resulting in a more
permanent shift in the Company's business risk profile, could also
result in the requirement to maintain stronger credit metrics to
support the same credit rating.
EARNINGS OUTLOOK
Morningstar DBRS anticipates Top Aces' earnings profile will
strengthen within the current credit rating category, benefitting
from contract growth, including services related to supporting
Ukraine over the near term and ADAIR training services in Europe
and the U.S. over the more medium term. Revenue growth in 2024 was
primarily driven by the full-year benefits from an expanded ADAIR
and CAS contract with the Royal Canadian Air Force that was signed
in 2023, the full-year contributions from the Company's inaugural
ADAIR contract in the United States using Lockheed Martin F-16s
(F-16) at the Luke and Eglin Air Force bases, as well as contracts
related to F-16 maintenance training and support for Ukraine.
Revenue growth in 2025 should benefit primarily from work to
support Ukraine and expanded ADAIR and CAS services in the U.S. and
Europe. Looking past 2025, Morningstar DBRS expects the Company's
revenue growth to be primarily driven by additional ADAIR contracts
in Europe and the U.S., benefitting from favorable industry
tailwinds for ADAIR services considering their cost effectiveness
and the F-35 adoption, evolved training requirements, and pilot
shortages of Western militaries. This growth should more than
offset a decline in Ukraine-related revenues as they potentially
start to roll off in 2026 and 2027. We expect a notable expansion
in EBITDA margins in 2025 and 2026, aided by operating leverage
gains and relatively stronger margin contribution from new
contracts. As such, Morningstar DBRS forecasts EBITDA to continue
to see solid growth for the full-year 2024, as well as 2025 and
2026.
FINANCIAL OUTLOOK
Despite the growth in earnings, Morningstar DBRS expect Top Aces'
financial profile to remain relatively stable over the near term
considering the Company's considerable capital expenditure (capex)
requirements for fleet maintenance and to compete for future
contracts, which will require incremental debt. Over the more
medium term, Morningstar DBRS believes Top Aces' financial profile
should improve as the growth in earnings would allow the Company to
increasingly self-fund capex requirements. Morningstar DBRS
forecasts cash flow from operations (before changes in working
capital and principal lease payments) will continue to grow in line
with earnings. Considering significant growth and maintenance capex
outlays for the full-year 2024, as well as in 2025 and 2026,
Morningstar DBRS forecasts the Company to remain in a
free-cash-flow deficit position after changes in working capital
and principal lease payments, but be in a positive position not
accounting for growth capex. Morningstar DBRS anticipates that the
Company will fund this deficit with incremental debt. As such,
Morningstar DBRS expects leverage to remain relatively stable in
2025 (i.e., debt-to-EBITDA of approximately 3.25x) and decline
thereafter.
CREDIT RATING RATIONALE
Comprehensive Business Risk Assessment (CBRA): Top Ace's CBRA of BH
reflects the Company's solid market position in its niche markets,
contracted revenues streams, strong safety record, technological
capabilities, and favorable industry tailwinds. The CBRA also
reflects the considerable spending requirements related to fleet
maintenance and contract growth, risks associated with customer
concentration, as well as uncertainties around existing contract
renewals and future contract growth.
Comprehensive Financial Risk Assessment (CFRA): Top Aces' CFRA of
BBBL reflects the Company's relatively conservative financial
management practices (i.e., debt-to-EBTIDA of approximately 3.25x
in 2025).
Intrinsic Assessment (IA): The IA of BBL is within the Intrinsic
Assessment Range and is based on the CBRA and CFRA, also taking
into consideration peer comparisons, among other factors.
Additional Considerations: The credit ratings include no further
negative or positive adjustments resulting from additional
considerations.
Recovery Rating: The Recovery Rating of RR5 on the Senior Unsecured
Notes assumes a fully drawn secured revolver and reflects the
secured revolver's first-lien position.
Notes: All figures are in Canadian dollars unless otherwise noted.
TREESAP FARMS: Secures $51MM Chapter 11 Loan Final Approval
-----------------------------------------------------------
Clara Geoghegan of Law360 Bankruptcy Authority reports that
landscape plant grower TreeSap Farms LLC won approval from a Texas
bankruptcy judge to access the remaining portion of its $51 million
debtor-in-possession loan as it pursues a sale in Chapter 11.
About TreeSap Farms
TreeSap Farms, LLC filed Chapter 11 petition (Bankr. S.D. Texas
Case No. 25-90017) on February 24, 2025, listing between $100
million and $500 million in both assets and liabilities.
Judge Alfredo R. Perez oversees the case.
The Debtor tapped Hunton Andrews Kurth, LLP and McKool Smith, P.C.
as legal counsels; Armory Securities, LLC as investment banker; and
The Keystone Group as financial advisor.
TRINITY PLACE: Reports $5.6MM Net Income in 2024
------------------------------------------------
Trinity Place Holdings Inc. filed with the U.S. Securities and
Exchange Commission its Annual Report on Form 10-K reporting
$5,603,000 in net income attributable to common stockholders over
$3,542,000 in total revenues for the year ended December 31, 2024,
compared to $39,019,000 in net loss attributable to common
stockholders over $33,602,000 for the year ended December 31,
2023.
The Company also reported $3,727,000 in total assets, $1,526,000 in
total liabilities, and $2,201,000 in total stockholders' equity at
December 31, 2024.
On February 14, 2024, the Company consummated the transactions
contemplated by the Stock Purchase Agreement, dated as of January
5, 2024, between the Company, TPHS Lender LLC, the lender under the
Company's Corporate Credit Facility and TPHS Investor LLC, an
affiliate of TPHS Lender, pursuant to which (i) Legacy Investor
purchased 25,112,245 shares of common stock, par value $0.01 per
share of the Company for a purchase price of $0.30 per share, (ii)
the Company and the JV Investor entered into an amended and
restated limited liability company operating agreement of
TPHGreenwich, pursuant to which the JV Investor was appointed the
initial manager of, and acquired a five percent (5%) interest in
TPHGreenwich, and TPHGreenwich continues to own, indirectly, all of
the real property assets and liabilities formerly held by the
Company, and (iii) TPHGreenwich entered into an asset management
agreement with a newly formed subsidiary of the Company, pursuant
to which TPHGreenwich hired the TPH Manager to act as initial asset
manager for TPHGreenwich for an annual management fee.
Under the Recapitalization Transactions, all real estate assets and
related liabilities of the Company were contributed to TPHGreenwich
at fair value. This resulted in a gain on contribution to joint
venture of approximately $21.0 million and was recorded during the
year ended December 31, 2024.
On February 5, 2025, the Company entered into a stock purchase
agreement with TPHS Lender and Steel IP Investments, LLC, an
affiliate of Steel Partners Holdings L.P., pursuant to which the
Steel Purchaser agreed to purchase from TPHS Lender, and TPHS
Lender agreed to sell to Steel Purchaser, 25,862,245 shares of
Common Stock of the Company in accordance with the terms and
conditions of the Steel Stock Purchase Agreement. The aggregate
consideration payable to TPHS Lender was $2,586,200 for the Steel
Shares and certain agreements pursuant to the Steel Stock Purchase
Agreement.
On February 18, 2025, at the closing of the transactions
contemplated by the Steel Stock Purchase Agreement, the Company,
TPHS and the Steel Purchaser entered into certain ancillary
agreements, including the Amended and Restated JV Operating
Agreement and the Steel Purchaser Stockholders' Agreement. The
Company consummated the Steel Partner Transaction with a view
toward, among other things, achieving significant operational
synergies, including through the use of Steel Partners’ corporate
services and participation in Steel Partners operational excellence
programs.
Following the Recapitalization Transactions and the Steel
Transaction, our primary business is owning a variety of
intellectual property assets focused on the consumer sector, as
well as a 95% interest in TPHGreenwich which is accounted for as an
equity method investment. As discussed herein, we may distribute
the interest in TPHGreenwich to our shareholders in 2025. At the
same time, we are implementing various cost efficiencies using
proven business optimization practices in partnership with Steel
Partners and exploring potential business expansions and
alternatives in order to maximize stockholder value. These may
include, for example, acquisition of additional business assets,
contribution by Steel or a third party of additional business
assets to Trinity, or other business combinations. There is no
assurance that we will successfully complete any such acquisition,
contribution, or combination, or that any such transaction will be
successful.
The financial statements do not include any adjustments that might
result from the outcome of any uncertainty as to our ability to
continue as a going concern.
A full-text copy of the Form 10-K is available at
https://tinyurl.com/r6jyn4p8
About Trinity Place
Trinity Place Holdings Inc. is a real estate holding, investment,
development, and asset management company. On Feb. 14, 2024, the
Company's real estate assets and related liabilities were
contributed to TPH Greenwich Holdings LLC, which is owned 95% by
the Company, with an affiliate of the lender under the Company's
corporate credit facility owning a 5% interest in, and acting as
manager of, such entity. These real estate assets include: (i) the
property located at 77 Greenwich Street in Lower Manhattan, which
is substantially complete as a mixed-use project consisting of a
90-unit residential condominium tower, retail space, and a New
York
City elementary school; (ii) a 105-unit, 12-story multi-family
property located at 237 11th Street in Brooklyn, New York; and
(iii) a property occupied by retail tenants in Paramus, New
Jersey.
As of September 30, 2024, Trinity Place Holdings had $3 million in
total assets, $1.5 million in total liabilities, and $1.5 million
in total stockholders' equity.
Going Concern
The Company cautioned in its Quarterly Report for the period ended
September 30, 2024, that there is substantial doubt about its
ability to continue as a going concern.
The Company said, "We have a limited amount of unrestricted cash
and liquidity available for working capital and our cash needs are
variable under different circumstances. If the Asset Management
Agreement does not remain in place and the related fees are not
increased significantly, the Company's cash and cash equivalents
will not be sufficient to fund the Company's operations and
corporate expenses beyond the next few months, unless we are able
to raise additional capital or enter into a strategic transaction,
creating substantial doubt about our ability to continue as a
going
concern. There is no assurance that we will be successful in
consummating any such strategic transaction or obtaining capital
sufficient to meet our operating needs, in each case, on terms or
a
timeframe acceptable to us or at all. Even if a strategic
transaction and/or other transaction is entered into, the benefits
to shareholders, if any, of such transactions are uncertain.
Further, in the event that we are unable to identify or consummate
such transactions, we would be required to evaluate additional
alternatives in restructuring our business and our capital
structure, including but not limited to, filing for bankruptcy
protection, liquidating, dissolving and/or seeking another
out-of-court restructuring of our liabilities or liquidation."
TRIPLETT FUNERAL: Case Summary & Four Unsecured Creditors
---------------------------------------------------------
Debtor: Triplett Funeral Homes, LLC
975 E Main St
Kahoka, MO 63445
Business Description: Triplett Funeral Homes, LLC, located in
Kahoka, MO, is a locally owned and operated
funeral service provider dedicated to
offering compassionate services and
personalized care to families during their
time of need.
Chapter 11 Petition Date: March 27, 2025
Court: United States Bankruptcy Court
Eastern District of Missouri
Case No.: 25-20049
Debtor's Counsel: Fredrich J Cruse, Esq.
CRUSE CHANEY-FAUGHN
718 Broadway
P.O. Box 914
Hannibal, MO 63401-0914
Tel: 573-221-1333
Fax: 573-221-1448
E-mail: fcruse@cruselaw.com;
bjdaughtery@cruselaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Christopher T. Triplett as
member/manager.
A full-text copy of the petition, which includes a list of the
Debtor's four unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/7B6P33I/Triplett_Funeral_Homes_LLC__moebke-25-20049__0001.0.pdf?mcid=tGE4TAMA
TRISTATE DEVELOPMENT: Seeks Chapter 11 Bankruptcy in Maryland
-------------------------------------------------------------
On March 25, 2025, Tristate Development LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Maryland. According to court filing, the
Debtor reports $1,290,107 in debt owed to 1 and 49 creditors.
The petition states funds will not be available to unsecured
creditors.
About Tristate Development LLC
Tristate Development LLC owns a 37.548-acre property located at 0
Lusby's Lane, Brandywine, MD 20613, with an estimated value of $1.6
million.
Tristate Development LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 25-12552) on March 1,
2025. In its petition, the Debtor reports total assets of
$1,600,000 and total liabilities of $1,290,107.
The Debtor is represented by Steven Greenfeld, Esq. at LAW OFFICE
OF STEVEN H. GREENFELD.
TROPICANA BRANDS: Nears $400MM Debt Restructuring Deal
------------------------------------------------------
Reshmi Basu, Eliza Ronalds-Hannon, and Jill R. Shah of Bloomberg
News report that Tropicana Brands Group is close to securing a debt
restructuring agreement that would provide the juice maker with
$400 million in fresh capital, according to sources familiar with
the matter.
Lenders are in talks with the PAI Partners-backed company to
arrange the new funding, said the sources, who requested anonymity
due to the private nature of the discussions.
The deal would also restructure creditor repayment priorities and
include a below-par debt exchange, which could launch as soon as
next week. Creditors are expected to face differing terms under the
agreement, the sources added.
The Troubled Company Reporter, citing Steven Church of Bloomberg
News, previously reported that Tropicana Brands Group, facing
liquidity challenges amid weak juice sales, is
weighing competing cash infusion offers from new lenders and
existing debt holders, according to sources familiar with the
matter.
Among the proposals is a loan offer from TPG Angelo Gordon, the
sources said, asking not to be identified as the talks are
private.
About Tropicana Brands Group
Tropicana Brands Group produces fruit juices, smoothies and other
beverages based in Chicago, Illinois.
TUTOR PERINI: S&P Raises Senior Unsecured Notes Rating to 'B'
-------------------------------------------------------------
S&P Global Ratings raised its issue-level rating on Tutor Perini
Corp.'s senior unsecured notes to 'B' from 'CCC+'. This follows the
company's repayment of its first-lien term loan with cash on hand
which resulted in a revised recovery rating to '2' from '5'. The
'2' recovery rating indicates its expectation for substantial
recovery (70%-90%; rounded estimate 80%) in the event of payment
default.
S&P said, "Our 'B-' issuer credit rating on Tutor Perini is
unchanged. We consider the recent debt repayment, which concluded
in the first quarter of 2025, as a positive development for the
company as it works through litigation and settlements related to
the resolution of disputes on various legacy projects. As the
company continues to resolve its legacy disputes, it may continue
to incur charges through at least 2025 which could pressure
near-term earnings. However, as early as the second half of 2025,
we expect Tutor Perini will begin to ramp up work on higher-margin
megaprojects that were more recently added to its backlog. As work
continues on these projects, we anticipate margins will improve,
which could be offset by potential charges. Our financial risk
profile assessment of highly leveraged remains unchanged. This
stems from the recent history of negative and nearly break-even
EBITDA, resulting in elevated leverage, offset by the company's
liquidity position."
Issue Ratings - Recovery Analysis
Key analytical factors
-- S&P revised its recovery analysis to reflect the full repayment
of the company's $425 million first-lien term loan due 2027 with
cash on hand.
-- S&P upgraded the senior unsecured notes to reflect the
reduction of first-lien debt.
-- S&P does not rate the company's $170 million cash flow
revolver.
-- S&P's simulated default assumes a payment default following a
steep decline in U.S. construction, heightened competitive
pressures on government contracts, and cost overruns on the
company's fixed-price contracts that hurt revenue and cash flow.
-- S&P values the company on a going-concern basis using a 5x
multiple of its projected emergence EBITDA, in line with the
multiple used for peers in the engineering and construction (E&C)
industry.
-- S&P assumes 85% of the revolver is drawn in a default scenario,
which is consistent with our assumption for other corporate
issuers.
Simulated default assumptions
-- Simulated year of default: 2027
-- EBITDA at emergence: $110 million
-- Enterprise value multiple: 5x
Simplified waterfall
-- Net enterprise value at emergence (after 5% administrative
costs): $524 million
-- Valuation split (obligors/nonobligors): 90%/10%
-- Priority claims: $26 million
-- Collateral value available to senior creditors after priority
claims: $480 million
-- Secured first-lien debt claims: $150 million
-- Total value available to unsecured claims: $330 million
-- Unsecured debt claims: $410 million
--Recovery expectations: 70%-90% (rounded estimate: 80%)
Note: All debt amounts include six months of prepetition interest.
Ratings List
Ratings Withdrawn
To From
Tutor Perini Corp.
Senior Secured NR B+
Recovery Rating NR 1(95%)
Issue-level Ratings Raised; Recovery Ratings Revised
Tutor Perini Corp.
Senior Unsecured B CCC+
Recovery Rating 2(80%) 5(15%)
TWIN FALLS: Committee Hires Ballard Spahr LLP as Counsel
--------------------------------------------------------
The official committee of unsecured creditors of Twin Falls Oil
Service, LLC seeks approval from the U.S. Bankruptcy Court for the
District of North Dakota to employ Ballard Spahr LLP as counsel.
The firm will provide these services:
a. consult with the Debtor and the Office of the United
States Trustee concerning administration of this bankruptcy case;
b. advise the Committee with respect to its rights, powers
and duties as they relate to this case;
c. investigate the acts, conduct, assets, liabilities and
financial condition of the Debtor;
d. investigate the operation of the Debtor's business and the
desirability of the continuance of the business;
e. investigate any matters related to formulation of a plan;
f. advise the Committee in connection with any proposed sale
of the Debtor's assets;
g. participate in the formulation of a plan, advise the
unsecured creditors of the Committee's determinations related to
any plan formulated, and collect and file with the Court
acceptances or rejections of any such plan; and
h. request the appointment of a trustee or examiner, if
appropriate; and
i. perform other such services as are in the interests of the
Committee and the unsecured creditors as a whole.
The firm will be paid at these rates:
Charles E. Nelson, Partner $605 per hour
Conor H.M. Smith, Associate $455 per hour
Nathaniel C. Cardinal, Associate $425 per hour
Paralegals and other paraprofessionals $200 to $350 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Charles E. Nelson, Esq., a partner at Ballard Spahr LLP, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Charles E. Nelson, Esq.
Ballard Spahr LLP
2000 IDS Center
80 South Eighth Street
Minneapolis, MN 55402-2119
Tel: (612) 371-2438
Email: nelsonc@ballardspahr.com
About Twin Falls Oil Service, LLC
Twin Falls Oil Service, LLC, a company in Killdeer, N.D., offers
crude oil hauling, water hauling, aggregate hauling, hydrovac winch
services, and OTR hauling.
Twin Falls filed Chapter 11 petition (Bankr. D. N.D. Case No.
24-30525) on December 11, 2024, listing up to $50,000 in assets and
up to $10 million in liabilities. Jeffery L. Jacobson, president of
Twin Falls, signed the petition.
Judge Shon Hastings oversees the case.
The Debtor is represented by:
Steven R. Kinsella, Esq.
Fredrikson & Byron, P.A.
Tel: (612) 492-7244
Email: skinsella@fredlaw.com
VERIFONE SYSTEMS: Fitch Assigns 'B-' LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has assigned a first-time Long-Term Issuer Default
Rating (IDR) of 'B-' to Verifone Systems, Inc (Verifone). Fitch has
also assigned issue level ratings of 'B' with a Recovery Rating of
'RR3' to Verifone's first lien senior secured term loan and
revolving credit facility and an issue level rating of 'BB-'/'RR1'
to its Receivables Securitization facility. The Rating Outlook is
Stable.
The IDR reflects Verifone's high but declining leverage and
execution risk associated with its strategic realignment. It also
considers that roughly half of the company's revenue comes from
transaction-based hardware sales, which have historically exhibited
some volatility as a result of customer order cycles and supply
chain issues. Fitch's ratings acknowledge the company's established
brand presence within the payments technology space and industry
growth that should provide a tailwind to revenue over time.
Key Rating Drivers
Strategic Initiatives Introduce Execution Risk: Verifone has
several strategic shifts underway that are meant to improve
profitability and cash generation while also reducing operating
volatility. Fitch recognizes the potential benefits of these
initiatives but also believes there are execution challenges.
Verifone faced revenue headwinds in recent years, as roughly half
of its revenue comes from volatile hardware sales, which are
transactional in nature. Additionally, past client management
strategies have negatively impacted channel segment revenues.
To recapture lost market share and enhance profit margins, Verifone
is focusing on enhancing customer relationships and achieving
operational efficiencies. Verifone is also undergoing a transition
in its manufacturing footprint to realize cost savings associated
with procurement and improve product development processes.
Deleveraging Prospects: Verifone's EBITDA leverage is high at 7.7x
at 1Q25, but Fitch believes the company has the ability to delever
to the low-5.0x range by FY26 and mid-4.0x range by FY28. The
prospect of lower leverage, growing revenues, and expanding EBITDA
margins are key considerations driving the rating. The company's
private equity ownership may maintain slightly elevated leverage to
optimize ROE. Fitch also projects EBITDA interest coverage will
improve to the low-2.0x range by FY26.
Volatile Systems Revenue Growth: The transactional nature of
systems sales could cause revenue volatility as order volumes and
mix fluctuates over time. Revenues declined in FY24, but Fitch
forecasts a moderate rebound in FY25. Fitch expects
mid-single-digit growth over the medium term as the company
benefits from secular trends related to increased card usage,
contactless payments, advanced point-of-sale (POS) systems, and
further technological integration. However, there remains a risk of
market share loss in the POS hardware sales segment, as alternative
payment technologies emerge.
Recurring Services Mitigate Systems Volatility: Recurring services
revenues comprise roughly 50% of the company's total revenue,
partially mitigating exposure to more volatile systems revenue.
While recurring revenue mix is lower than payments industry peers,
it is favorable compared to many similarly rated business services
peers and the company reports strong customer retention,
highlighting the reoccurring nature of certain revenue streams.
Compared to payments industry peers recurring revenue mix is
significantly lower as peers largely focus on recurring services
offerings.
Cash Flow Pressures: Fitch expects Verifone's FCF to remain
negative in FY25, before turning positive in FY26 and beyond. FCF
is pressured by elevated interest expense, ongoing business
investment, and one-time costs including payments to the Israeli
Tax Authority. Restructuring initiatives are likely to drive cost
savings and increased efficiency moving forward however associated
cash costs are a headwind to FCF in the near term. Fitch expects
improved profitability will contribute to positive FCF generation
over time. Fitch forecasts (CFO-Capex)/Debt will be roughly -1.5%
in FY25 and gradually improve to 2.8% by FY26.
Competition Threatens Strong Market Position: Verifone has
benefitted from its market presence as a leading brand in the POS
terminal market, but faces an increasingly intense and fragmented
competitive environment. The company caters to a diverse range of
sectors and continues to expand its service offerings to cater to
the evolving needs of customers to drive growth. Verifone's market
position benefits from its existing installed base and global
reach, however competition from fintech providers and tech
disruptors, like Clover (owned by Fiserv, Inc.) and Block, Inc.
(BB+/Positive), could limit growth.
Peer Analysis
Fitch's ratings for Verifone reflect its high leverage position and
material execution risk associated with achieving sustained organic
growth. Fitch assesses the rating relative to other payment and
technology companies that provide a range of similar software,
hardware, and service offerings. The company is less favorably
positioned versus other FinTech providers such as merchant
acquirers and payment processors that tend to have a large portion
of recurring revenue streams. Considering about half of Verifone's
business is generated from hardware sales, it has a large portion
of revenue in the business which is transactional in nature.
Compared to NCR Voyix Corporation (BB-/RWP), Verifone operates at a
much smaller scale. NCR Voyix has a solid position in the retail
segment where it is a market leader in self-checkout hardware &
software. NCR Atleos Corporation (BB-/Stable) is a market leader in
the ATM manufacturing industry and operates at a scale which is
larger than Verifone. Verifone operates at a higher leverage
compared to both NCR Voyix and NCR Atleos and EBITDA margins that
are roughly in line with the two peers.
Key Assumptions
- Revenue is expected to grow in the low double-digit range in FY25
and grow in the mid-single-digit range thereafter. Fitch expects
systems revenue growth will rebound in FY25 after FY24 lows.
Services revenue is expected to grow in mid-single-digit range.
- EBITDA margins are projected to gradually expand to the mid- to
high-20% range, as the company benefits from gross and operating
margin expansion. Restructuring initiatives and the shift in its
manufacturing strategy are expected to contribute to margin
expansion.
- Capital intensity is projected to be between 6.0%-7.0% of
revenue.
- Changes in working capital are projected to be a minimal use of
cash over the forecast period.
- Fitch assumes debt facilities will be refinanced prior to
becoming current.
- Interest rates are forecasted to remain elevated, between
3.5%-5.0% across the forecast horizon, based on the Term SOFR
forward curve.
RECOVERY ASSUMPTIONS:
For entities rated 'B+' and below - where default is closer and
recovery prospects are more meaningful to investors - Fitch
undertakes a tailored, or bespoke, analysis of recovery upon
default for each issuance. The resulting debt instrument rating
includes a Recovery Rating or published 'RR' (graded from RR1 to
RR6) and is notched from the IDR accordingly. In this analysis,
there are three steps: (i) estimating the distressed enterprise
value (EV); (ii) estimating creditor claims; and (iii) distribution
of value.
Key assumptions used in its recovery analysis are as follows:
- The recovery analysis assumes that Verifone would be reorganized
as a going-concern (GC) in bankruptcy rather than liquidated;
- Fitch has assumed a 10% administrative claim.
- Fitch has assumed a GC EBITDA in the event of distress, of $235
million, which assumes Verifone will suffer elevated customer churn
due to competitive pressures and cyclical declines in systems
revenue.
- Fitch assumes a 6.0x multiple, which is validated based on
historic industry M&A, current and historic industry trading
multiples and Fitch's analysis of prior bankruptcies in the
technology, media and telecom sectors.
- Fitch assumes a fully drawn revolver and AR Securitization
facility in its recovery analysis as revolvers are tapped as
companies are under distress and AR Securitizations are assumed to
be replaced by Super-Senior debt in a distressed scenario.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Material changes to competitive dynamics or the inability to
realize the benefits of on-going strategic initiatives leading to
sustained declines in revenue, pricing, or margin structure;
- EBITDA leverage expected to be sustained above 6.5x;
- (CFO-Capex)/Debt sustained below 0%;
- EBITDA interest coverage sustained below 1.5x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Higher than expected revenue growth implying a stable market
position and the continued recovery of systems revenue;
- EBITDA leverage expected to be sustained below 5.5x;
- (CFO-Capex)/Debt sustained above 2.5%.
Liquidity and Debt Structure
Verifone has $75 million in cash and $128 million of revolver
availability as of Jan. 31, 2025. Fitch forecasts positive FCF in
FY 2026 and beyond, further supporting the company's liquidity
position. Liquidity uses include cash interest expense between $176
and $192 million annually, annual amortization payments of $21.8
million (paid quarterly), and capex that is expected to be between
6.0% and 7.0% of revenue annually.
The company's capital structure consists of a $175 million first
lien Revolver, $2.2 billion first lien term loan, and $75 million
A/R Securitization facility. The revolver and term loan mature in
May 2025 and August 2025, respectively, however it has been
reported that the company is in talks with lenders to extend the
first-lien debt maturities by three years. The A/R Securitization
facility matures in July 2027.
Issuer Profile
Verifone provides technology for electronic payment transactions
and value-added services at the POS. The company designs,
manufactures, and supplies payment and commerce solutions that
enable secure electronic payment transactions and value-added
services for consumers, merchants, and financial institutions.
Date of Relevant Committee
25-Mar-2025
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery
----------- ------ --------
Verifone Receivables
SPE LLC
senior secured LT BB- New Rating RR1
VeriFone Systems,
Inc. LT IDR B- New Rating
senior secured LT B New Rating RR3
VIA MIZNER: Seeks to Hire CBRE Inc. as Real Estate Broker
---------------------------------------------------------
Via Mizner Owner I, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ CBRE Inc. as
real estate broker.
The firm will market and sell the Debtors' real property located at
101 Via Mizner, 101 E Camino Real, Boca Raton, FL 33432.
The firm will be paid 0.26 percent of the Gross Sale Proceeds.
As 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:
Robert Given
CBRE, Inc.
401 E Las Olas Blvd, Suite 1500
Fort Lauderdale, FL 33301
Tel: (561) 213-5297
About Via Mizner Owner I, LLC
Via Mizner Owner I LLC is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
Via Mizner Owner I sought filed Chapter 11 petition (Bankr. S.D.
Fla. Case No. 25-10369) on January 15, 2025, listing between $100
million and $500 million in both assets and liabilities.
Judge Erik P. Kimball handles the case.
The Debtor tapped Bradley S. Shraiberg, Esq., at Shraiberg Page, PA
as bankruptcy counsel and Bruce Rosetto, Esq., at Greenberg
Traurig, PA as special counsel.
VICTORY HOLDING: Seeks Chapter 11 Bankruptcy in New York
--------------------------------------------------------
On March 26, 2025, Victory Holding Corp. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of New York. According to court filing, the
Debtor reports between $500,000 and $1 million in debt owed to
1 and 49 creditors. The petition states funds will be available to
unsecured creditors.
About Victory Holding Corp.
Victory Holding Corp. is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
Victory Holding Corp. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-41461) on March 26,
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 Jil Mazer-Marino handles the case.
The Debtor is represented by Joshua R. Bronstein, Esq. at JOSHUA R.
BRONSTEIN & ASSOCIATES, PLLC.
VIEWBIX INC: Implements 1-for-4 Reverse Stock Split
---------------------------------------------------
Viewbix Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that it received notice from the
Financial Industry Regulatory Authority, Inc. that the contemplated
1-for-4 reverse stock split of the Company's common stock, par
value $0.0001 per share, as previously disclosed in its Current
Report on Form 8-K filed with the U.S. Securities and Exchange
Commission on July 19, 2024, has been processed by FINRA and was
announced on FINRA's daily list on March 13, 2025.
The Reverse Stock Split became effective on the OTC Pink
Marketplace as of market open on March 14, 2025. The new CUSIP
number for the Common Stock following the Reverse Stock Split is
926711300. The Company's shares will continue to trade on the OTC
Pink Marketplace under the symbol "VBIX" with the letter "D" added
to the end of the trading symbol for a period of 20 trading days to
indicate that the Reverse Stock Split has occurred, such that the
ticker will be "VBIXD," during this period. After the 20-trading
day period has elapsed, the extra "D" will be removed, and the
Company's ticker symbol will revert back to "VBIX".
Upon the effectiveness of the Reverse Stock Split, every four
outstanding shares of the Company's Common Stock would, without any
further action by the Company, or any holder thereof, be converted
into, and automatically become, one share of the Company's Common
Stock.
On July 19, 2024, the Company submitted to FINRA a notification
form for processing the Reverse Stock Split on the OTC Pink
Marketplace, the principal market of the Company's Common Stock.
As a result of FINRA's announcement and the effectiveness of the
Reverse Stock Split, 21,179,686 shares of the Company's Common
Stock issued and outstanding immediately prior to the Reverse Stock
Split will be converted into approximately 5,294,922 shares of the
Company's Common Stock. No fractional shares will be issued as a
result of the Reverse Stock Split. Any fractional shares of Common
Stock resulting from the Reverse Stock Split will be rounded up to
the nearest whole share.
The Reverse Stock Split will not change the par value of the Common
Stock or the number of authorized shares of Common Stock, which is
490,000,000 shares of Common Stock immediately prior to the
effectiveness of the Reverse Stock Split.
As a result of the Reverse Stock Split, the number of shares of the
Company's Common Stock that may be purchased upon the exercise of
outstanding warrants, options, or other securities convertible
into, or exercisable or exchangeable for, shares of Common Stock,
and the exercise or conversion prices for these securities, will be
ratably adjusted in accordance with their terms.
On July 15, 2024, the Company filed an Amendment to the Certificate
of Incorporation of the Company with the Secretary of State of the
State Delaware, which became effective upon filing.
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.
Brightman Almagor Zohar & Co., the Company's auditor since 2012,
issued a "going concern" qualification in its report dated March
21, 2025, 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.
Beijing, China-based ZW Data Action Technologies Inc., established
in 2003, is an ecological enterprise that provides digital services
to sales and marketing channels through blockchain, big data, and
precision marketing. ZW Data Action is committed to empowering SMEs
to achieve more efficient and accurate operations and management,
resulting in additional value for clients.
VILLAGE ROAD: Seeks to Tap Verita Global as Claims & Noticing Agent
-------------------------------------------------------------------
Village Roadshow Entertainment Group USA Inc. and its affiliates
seek approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Kurtzman Carson Consultants, LLC, doing business
as Verita Global, as claims and noticing agent.
Verita Global will oversee the distribution of notices and will
assist in the maintenance, processing, and docketing of proofs of
claim filed in the Chapter 11 cases of the Debtors.
Prior to petition date, the firm received a retainer in the amount
of $45,000 from the Debtors.
Evan Gershbein, executive vice president at Verita Global,
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:
Evan Gershbein
Kurtzman Carson Consultants, LLC
222 N. Pacific Coast Highway, 3rd Floor
El Segundo, CA 90245
Telephone: (310) 823-9000
About Village Roadshow Entertainment Group USA
Village Roadshow Entertainment Group USA Inc. and its affiliates
are a prominent independent producer and financier of major
Hollywood films, having produced over 100 successful movies since
1997. Their portfolio includes globally recognized blockbusters
such as "Joker," "The Great Gatsby," and the "Matrix" trilogy.
Before the WB Arbitration, which began in 2022, the Company had a
profitable and well-established co-production and co-financing
partnership with Warner Bros. Entertainment Inc. and its affiliates
("WB"), resulting in many successful projects. The Company's most
valuable assets include its Film Library and Derivative Rights,
stemming from its extensive and enduring film industry presence.
Village Roadshow Entertainment Group USA Inc. and its affiliates
sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
D. Del. Lead Case No. 25-10475) on March 17, 2025. In the petitions
signed by Keith Maib, chief restructuring officer, the Debtors
disclosed up to $500 million in estimated assets and up to $1
billion in estimated liabilities.
Honorable Bankruptcy Judge Thomas M. Horan handles the cases.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP as local
counsel; Sheppard, Mullin, Richter & Hampton LLP as bankruptcy
counsel; Kirkland & Ellis LLP as special litigation counsel;
Accordion Partners, LLC as financial and restructuring advisor; and
Solic Capital Advisors, LLC as investment banker. Kurtzman Carson
Consultants, LLC, doing business as Verita Global, is the Debtors'
claims and noticing agent.
VILLAGE ROADSHOW: Taps Young Conaway, Sheppard to Help w/ Ch. 11
----------------------------------------------------------------
Clara Geoghegan of Law360 Bankruptcy Authority reports that Village
Roadshow Entertainment Group, known for films like The Matrix and
The Great Gatsby, has retained attorneys from Young Conaway
Stargatt & Taylor LLP and Sheppard Mullin Richter & Hampton LLP to
navigate a sale during its Chapter 11 proceedings.
About Village Roadshow
Village Roadshow is a film production company.
Village Roadshow sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-10475) on March 17,
2025. In its petition, the Debtor reports estimated assets between
$100 million and $500 million and estimated liabilities between $1
billion and $10 billion.
The Debtor is represented by Benjamin C. Carver, Esq., Joseph M.
Mulvihill, Esq., and Carol E. Thompson, Esq., at Young Conaway
Stargatt & Taylor, LLP, in Wilmington, Delaware.
VISALUS INC: Unsecured Creditors to Get Nothing in Plan
-------------------------------------------------------
ViSalus, Inc. filed with the U.S. Bankruptcy Court for the Eastern
District of Texas a Subchapter V Plan dated March 5, 2025.
The Debtor is a holding company that, at one time, operated in the
United States and internationally through multiple subsidiaries.
The Debtor and its subsidiaries ceased substantially all business
operations more than four years ago. When the Debtor was actively
in business, it marketed nutritional products and dietary
supplements.
The Debtor ceased operations because of a class action lawsuit
Wakefield v. ViSalus, Inc. (D. Oregon, Case No. 3:15-cv-1857-SI).
In Wakefield, Lori Wakefield filed suit against ViSalus, Inc. under
the Telephone Consumer Protection Act ("TCPA"), alleging that
ViSalus unlawfully sent her and other class members automated
telephone calls that violated the act.
The Wakefiled litigation continued nonetheless. On October 20,
2022, the Ninth Circuit ruled on ViSalus's appeal. The court
rejected most of ViSalus's arguments, but ruled that the nearly $1
billion damages award might be unconstitutionally excessive. The
court remanded for further proceedings consistent with its
proceedings.
Because ViSalus cannot afford to run the process as directed by the
court and because it has no hope of satisfying any judgment that
would arise from the process in any event, ViSalus filed a chapter
11 petition in this Court. Aside from holders of a small number of
disputed claims, ViSalus's creditor body consists of more than
800,000 potential members of the Wakefield class.
The Debtor has no tangible assets. It owns a variety of
subsidiaries (directly and indirectly). All the subsidiaries have
ceased operations, however, and similarly have no tangible assets.
One subsidiary has intellectual property relating to a travel
business -- Liv. In addition to the Liv IP, the Debtor has over $60
million in tax assets in the form of Net Operating Losses (NOLs).
Here, once the Debtor obtains a discharge, the Debtor proposes to
reactivate a travel-related business and take advantage of its
NOLs. To do this, the Debtor will solicit an equity investment
sufficient to operate the business
Class 1 consists of all general unsecured claims of the Debtor.
General unsecured claims will receive nothing under the Plan. This
Class is impaired.
Class 2 interest holders will retain their rights and interests
without impairment. Members of Class 2 are not entitled to receive
any cash payments on account of their equity interests under the
Plan.
The Plan will be funded by outside investment solicited after
confirmation of the Plan.
A full-text copy of the Subchapter V Plan dated March 5, 2025 is
available at https://urlcurt.com/u?l=K21xnP from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Christopher E. Prince, Esq.
Lesnick Prince & Pappas LLP
315 W. Ninth St., Suite 705
Los Angeles, CA 90015
Telephone: (213) 493-6496
Facsimile: (213) 493-6596
Email: cprince@lesnickprince.com
- and -
Local Counsel for the Debtor:
Jeff Carruth, Esq.
Weycer, Kaplan, Pulaski & Zuber, P.C.
2608 Hibernia, Suite 105
Dallas, TX 75204-2514
Telephone: (713) 341-1158
E-mail: jcarruth@wkpz.com
About Visalus Inc.
ViSalus, Inc., is a direct-to-consumer, personal health product
company.
ViSalus Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D. Tex. Case No. 24-42952) on Dec. 5, 2024. In the
petition filed by Niklas Sarnicola, as authorized representative,
the Debtor reports estimated assets between $1 million and $10
million and estimated liabilities between $50 million and $100
million.
The Debtor is represented by Jeff Carruth, Esq., at WEYCER KAPLAN
PULASKI & ZUBER P.C.
VS BUYER: Moody's Affirms 'B2' CFR & Alters Outlook to Positive
---------------------------------------------------------------
Moody's Ratings affirmed VS Buyer, LLC (Veeam)'s B2 corporate
family rating, B2-PD probability of default rating, and B2 senior
secured first lien bank credit facilities ratings. The outlook was
changed to positive from stable. Veeam is a leading provider of
backup and recovery software.
The affirmation of the B2 CFR and outlook change to positive
reflect Veeam's improved operating performance over the past year,
with healthy revenue growth supporting increasing EBITDA margins.
As of year-end 2024, Moody's estimates that Moody's adjusted debt
to EBITDA leverage was 5.2x. Moody's estimates leverage calculated
excluding stock-based compensation expense and reflecting the
change in deferred revenue was approximately 3.8x. While Moody's
anticipates a slight decline in EBITDA margins over the next year
due to increased R&D spending as the company invests in the
long-term growth of the business, Moody's expects solid operating
performance to be sustained and for revenue to grow at least in the
high single-digit percentages. Strong EBITDA margins, low capital
intensity, and the reduced cash interest expense following last
year's term loan repricing is also contributing to Veeam generating
consistent free cash flow.
RATINGS RATIONALE
Veeam's B2 CFR benefits from its good operating scale with over
$1.5 billion annual recurring revenue, its leading position in the
backup and recovery software market, and very good liquidity. Veeam
has built a particularly strong position as a provider of backup
and recovery software for virtualized environments, and the
favorable growth outlook for the backup and recovery software
industry support Moody's expectations for at least high-single
digit percentage annual revenue growth over at least the next year.
The company's asset-lite business model requires low capital
intensity supporting Moody's expectations of good free cash flow
generation and profitability.
The CFR is constrained by high financial leverage that Moody's
expects to slightly increase over the next 12 months due to higher
R&D investment spend and increased costs associated with the
scaling of its cloud offerings. Competition is intense across the
industry, and Veeam must meaningfully investing in technological
innovation and value-added capabilities to remain competitive, to
thwart the increasing complexity of cyberattacks, and to address
clients' ever-changing needs. Moody's expects financial policies to
favor shareholders with high financial risk tolerance under
financial sponsor ownership.
The senior secured bank credit facilities are rated B2, the same as
the CFR, reflecting that the first lien debt comprises
substantially all the debt in the capital structure.
Moody's expects Veeam to maintain very good liquidity, with $386
million cash on hand as of December 31, 2024, an undrawn $250
million revolver expiring April 2029, and Moody's expectations of
at $150 million free cash flow over the next 12 months. The company
will have $20 million of annual term loan amortization and it has
modest capital expenditures and working capital requirements. While
the term loan is not subject to financial covenants, the revolver
contains a springing maximum first lien net leverage covenant that
cannot exceed 8.75x and is tested quarterly when utilization is
greater than 35% ($87.5). Moody's expects Veeam will have ample
operating cushion under the covenant if it were to apply.
The positive outlook reflects Moody's expectations for Veeam to
have at least high single-digit percentage revenue growth over the
next 12 months while maintaining very good liquidity. The outlook
further assumes the company will adhere to a more balanced
financial policy.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Veeam maintains its strong growth
profile, strong liquidity, financial leverage is sustained below 5x
(adding back stock-based compensation and the change in deferred
revenue) and free cash flow to debt is sustained above 10%. The
company would also need to maintain prudent financial policies
consistent with a higher rating.
The ratings could be downgraded if operating performance slows
materially, market share deteriorates, financial leverage (adding
back stock-based compensation and the change in deferred revenue)
exceeds 6.5x, or free cash flow debt remains below 3% on other than
a temporary basis.
The principal methodology used in these ratings was Software
published in June 2022.
Veeam Software is a leading provider of backup and recovery
software for SMB, mid-market, and increasingly, enterprise
customers. VS Buyer, LLC (Veeam), the owner of Veeam and the
borrower of the senior secured bank credit facilities, is a
Delaware corporation. The company is controlled by the private
equity firm Insight Partners. The company generated approximately
$1.6 billion in adjusted revenue for the fiscal year ended December
31, 2024.
VUZIX CORP: Posts $74M Loss in 2024; Going Concern Doubt Alleviated
-------------------------------------------------------------------
Vuzix Corporation filed its Annual Report on Form 10-K with the
U.S. Securities and Exchange Commission, reporting a net loss of
$73.5 million for the fiscal year ended December 31, 2024, compared
to a net loss of $50.1 million for the fiscal year ended December
31, 2023. The Company had net cash outflows from operations of
$23.7 million for the year ended December 31, 2024, and $26.3
million for the year ended December 31, 2023. As of December 31,
2024, the Company had an accumulated deficit of $367.5 million.
The Company's cash requirements going forward are primarily for
funding operating losses, research and development, working capital
and capital expenditures.
Vuzix said, "Our cash requirements related to funding operating
losses depend upon numerous factors, including new product
development activities, our ability to commercialize our products,
our products' timely market acceptance, selling prices and gross
margins, and other factors. Historically, the Company has met its
cash needs primarily through the sale of equity securities. The
Company will need to grow its business significantly to become
profitable and self-sustaining on a cash flow basis or it will be
required to cut its operating costs significantly or raise new
equity and/or debt capital."
These historical financial factors initially raise substantial
doubt about the Company's ability to continue as a going concern.
The Company's management continues to take actions necessary to
continue as a going concern. Management's plans to alleviate the
conditions that raise substantial doubt include continuing to
implement operational improvements and the continued curtailment of
certain development programs, both of which the Company expects
will preserve cash.
Management's plans and actions completed to date concerning these
matters and managing the liquidity include, among other things:
* On September 13, 2024, the Company received $10,000,000
under the closing of the first tranche under a Securities Purchase
Agreement for the sale of up to $20,000,000 in common stock and
Series B Preferred Stock with Quanta Computer Inc. Under the first
closing, the Company sold $10,000,000 of common stock. The second
and third tranches, which are subject to achievement of specific
milestones, will each be for the sale of $5,000,000 of Series B
Preferred Stock. The Company expects that these milestones will be
achieved in the first half of 2026;
* Reductions in our cash annual operating expenses across all
operating areas, representing a reduction of at least 20% as
compared to 2023 levels vs. 2024 levels, including in the areas of
Research and Development, Sales and Marketing and General and
Administrative;
* Right-sizing of operations across all areas of the Company,
including headcount reductions and personnel hiring freezes;
* Reduction in the rate of new product introductions and
further leveraging of existing platforms to reduce new product
development and engineering costs;
* Delaying or curtailing discretionary and non-essential
capital expenditures not related to near-term product and
manufacturing needs, now that our waveguide manufacturing plant
expansion has substantially been completed and the license fees
payments under the Atomistic License have been completed;
* The expected margin contribution upon the commencement of
volume manufacturing and sales of waveguides from our new waveguide
manufacturing plant, particularly to ODM customers such as Quanta;
* Continued pursuit of further licensing and strategic
opportunities around our waveguide technologies with potential
ODMs/OEMs, which would include the receipt of upfront licensing
fees and on-going supply agreements; and
* Reduction in our existing products' selling prices and
higher volume discount levels to turn as much of our inventory of
finished products into cash and pursue external manufacturers for
Vuzix non-waveguide production needs.
The Company has historically raised capital through the sale of
equity securities. The Company has entered into a sales agreement
with an investment bank for the issuance and sale of up to
$50,000,000 of our common stock that may be issued and sold from
time to time in an "at the market" (ATM) offering. The Company
raised $8.2 million in the quarter ended December 31, 2024 and $1.3
million to date in 2025 under that ATM. Management monitors the
capital markets on an ongoing basis and may consider raising
capital if favorable market conditions develop.
"As a result of management's plan, our current amount of cash on
hand, and our historical ability to raise capital, management has
concluded that substantial doubt of our ability to continue as a
going concern has been alleviated," the Company said.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/mr2ch6ux
About Vuzix
Vuzix Corporation -- www.vuzix.com -- incorporated in Delaware in
1997, is a designer, manufacturer, and marketer of Smart Glasses
and Augmented Reality (AR) technologies and products for the
enterprise, medical, defense, and consumer markets. The Company's
HUDs) smart personal display and wearable computing devices that
offer users a portable high-quality viewing experience, providing
solutions for mobility, wearable displays, and augmented reality,
as well as OEM waveguide optical components and display engines.
The Company's wearable display devices are worn like eyeglasses or
attach to a head-worn mount.
As of Dec. 31, 2024, the Company had $39.4 million in total assets,
$2.1 million in total liabilities, and $37.3 million in total
stockholders' equity.
* * *
This concludes the Troubled Company Reporter's coverage of Vuzix
Corporation until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
W.D. TOWNLEY: Seeks Chapter 11 Bankruptcy in Texas
--------------------------------------------------
On March 26, 2025, W.D. Townley and Son Lumber Company Inc. filed
Chapter 11 protection in the U.S. Bankruptcy Court for
the Northern District of Texas. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
About W.D. Townley and Son Lumber Company Inc.
W.D. Townley and Son Lumber Company Inc. and affiliates 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.
W.D. Townley and Son Lumber Company Inc. sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case
No. 25-41053) on March 26, 2025. In its petition, the Debtor
reports estimated assets and liabilities between $1 million and $10
million each.
Honorable Bankruptcy Judge Edward L. Morris handles the case.
The Debtor is represented by Joseph Fredrick Postnikoff, Esq. at
ROCHELLE McCULLOGH, LLP.
WA3 PROPERTIES RENTON: Seeks Chapter 11 Bankruptcy in New York
--------------------------------------------------------------
On March 24, 2025, WA3 Properties Renton 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 $8,129,000 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About WA3 Properties Renton LLC
WA3 Properties Renton LLC owns a 99-bed skilled nursing facility at
80 SW 2nd Street, Renton, WA 98057, in fee simple title, with a
valuation of $10 million.
WA3 Properties Renton LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-71121) on March
24, 2025. In its petition, the Debtor reports total assets of
$11,887,584 and total liabilities of $8,129,000.
Honorable Bankruptcy Judge Louis A. Scarcella handles the case.
The Debtor is represented by Avrum J. Rosen, Esq. at LAW OFFICES OF
AVRUM J. ROSEN, PLLC.
WINDTREE THERAPEUTICS: Inks License Deal with Evofem Biosciences
----------------------------------------------------------------
On March 20, 2025, Windtree Therapeutics, Inc., entered into a
License and Supply Agreement with Evofem Biosciences, Inc., a
Delaware corporation, the Company disclosed in a Form 8-K filing
with the Securities and Exchange Commission.
Pursuant to the L&S Agreement, the Company will act as the supplier
to Evofem of its Phexxi(R) product outside of the United States.
The term of the L&S Agreement is for an initial three-year period
and is automatically renewed thereafter for successive two-year
periods unless either party provides 180 days' notice of
non-renewal or the L&S Agreement is otherwise terminated in
accordance with the termination provisions provided therein. The
Company's manufacturing and supply obligations under the L&S
Agreement will commence the later of the termination of Evofem's
exclusivity obligations with its current supplier or within 90 days
of the Company's notification to Evofem that it has established
manufacturing capabilities for the Products. The Company may
subcontract, with any third party including an affiliate of the
Company, to perform any of its obligations under the L&S Agreement
without the prior written consent of Evofem.
Evofem is generally obligated to purchase the Products from the
Company at a specified price during the first three years of the
Term (as defined in the L&S Agreement). Evofem also granted to the
Company a limited, nonexclusive, royalty-free right to use Evofem's
Intellectual Property Rights (as defined in the L&S Agreement)
solely as necessary to manufacture the Products exclusively for
Evofem during the Term, subject to the terms of the L&S Agreement.
The L&S Agreement contains representations and warranties of both
parties, insurance requirements for the Company, mutual
indemnification provisions, and confidentiality provisions.
Saundra Pelletier is the President and Chief Executive Officer of
Evofem, is Interim Chair of Evofem's board of directors, and also
serves on the Company's board of directors.
About Windtree Therapeutics
Headquartered in Warrington, Pennsylvania, Windtree Therapeutics,
Inc. -- windtreetx.com -- is a biotechnology company focused on
advancing early and late-stage innovative therapies for critical
conditions and diseases. The Company's portfolio of product
candidates includes: (a) istaroxime, a Phase 2 candidate that
inhibits the sodium-potassium ATPase and also activates sarco
endoplasmic reticulum Ca2+ -ATPase 2a, or SERCA2a, for acute heart
failure and associated cardiogenic shock; preclinical SERCA2a
activators for heart failure; rostafuroxin for the treatment of
hypertension in patients with a specific genetic profile; and a
preclinical atypical protein kinase C iota, or aPKCi, inhibitor
(topical and oral formulations), being developed for potential
application in rare and broad oncology indications. The Company
also has a licensing business model with partnership out-licenses
currently in place.
Philadelphia, Pennsylvania-based EisnerAmper LLP, the company's
auditor since 2022, issued a "going concern" qualification in its
report dated April 16, 2024, citing that the company has suffered
recurring losses from operations and expects to incur losses for
the foreseeable future, which raises substantial doubt about its
ability to continue as a going concern.
The Company's net loss was $20.3 million and $39.2 million,
respectively, for the years ended Dec. 31, 2023 and 2022. As of
Sept. 30, 2024, the Company had an accumulated deficit of $848.8
million.
"Our future success is dependent on our ability to fund and
develop
our product candidates, and ultimately upon our ability to attain
profitable operations. We have devoted substantially all of our
financial resources and efforts to research and development
expense
and general and administrative expense to support such research
and
development. Net losses and negative cash flows have had, and will
continue to have, an adverse effect on our stockholders' equity
and
working capital, and accordingly, our ability to execute our
future
operating plans," Windtree stated in its Quarterly Report for the
period ended Sept. 30, 2024.
WINDTREE THERAPEUTICS: Raises $250K Through Stock Sales
-------------------------------------------------------
On March 18, 2025, Windtree Therapeutics, Inc., agreed to issue and
sell to (i) an institutional investor an aggregate principal amount
of $156,250 in senior secured notes due in 2026, and (ii) an
additional institutional investor an aggregate principal amount of
$156,250 in senior secured notes due in 2026 for aggregate gross
proceeds of $250,000, the Company disclosed in a Form 8-K filing
with the Securities and Exchange Commission. Each of the Notes was
issued in a private offering in reliance on exemption from
registration provided in Section 4(a)(2) of the Securities Act of
1933, as amended. The Notes include 20% original issue discount.
Maturity Date. The Notes will mature on March 18, 2026, unless
extended at the holder's option in accordance with the terms of the
Notes.
Interest. The Notes will bear interest at 10% per annum on a
360-day and twelve 30-day month basis, payable monthly in cash and
in arrears on each Interest Date (as defined in the Notes) and such
interest will compound each calendar month. The interest rate will
increase to 18% per annum upon the existence of an Event of Default
(as defined in the Notes).
Fundamental Transactions. The Notes prohibit the Company from
entering specified fundamental transactions (including, without
limitation, mergers, business combinations and similar
transactions) unless the Company (or its successor) assumes in
writing all of the Company's obligations under the Notes and the
other Transaction Documents (as defined in the Notes).
Optional Redemption. The Company may at any time redeem all, but
not less than all, of the remaining amount under the Notes in cash
at a price equal to 120% of the remaining amount being redeemed as
of such optional redemption date. The Company may deliver only one
Company Optional Redemption Notice (as defined in the Notes) and
such notice will be irrevocable.
Equity Line Mandatory Redemption. At any time on or after the
Issuance Date, if the Company sells any shares of Common Stock
pursuant to any equity line of credit with any Person (as defined
in the Notes), the Company shall deliver written notice to the
holder in accordance with the terms of the Notes, specifying (i)
the aggregate gross proceeds (less any reasonable and documented
legal fees and expenses) of such transactions in the prior calendar
week, (ii) 30% of such Equity Line Proceeds Amount, (iii) the
applicable Equity Line Mandatory Redemption Date and (iv) the
aggregate portion of the Note subject to such Equity Line Mandatory
Redemption and the Equity Line Mandatory Redemption Price with
respect thereto. Unless waived in writing by the holder, on the
first business day after such notice, the Company shall redeem in
cash a portion of the Note equal to the lesser of (x) the remaining
amount of the Note and (y) the holder's Holder Pro Rata Amount of
the Equity Line Mandatory Redemption Amount (reflecting a
redemption price calculated based upon $1.20 per each $1.00 of the
remaining amount of the Note subject to such Equity Line Mandatory
Redemption), without the requirement for any notice or demand or
other action by the holder or any other Person.
Covenants. The Notes contain customary covenants providing for a
variety of obligations on the part of the Company.
Security Interest. The Notes will be secured by first-priority
security interests in all assets of the Company then presently
existing, and will constitute a valid, first priority security
interest in all assets of the Company later-acquired by the
Company.
The Company is represented:
Thompson Hine LLP
300 Madison Avenue, 27th Floor
New York, New York 10017
Attn: Faith L. Charles
About Windtree Therapeutics
Headquartered in Warrington, Pennsylvania, Windtree Therapeutics,
Inc. -- windtreetx.com -- is a biotechnology company focused on
advancing early and late-stage innovative therapies for critical
conditions and diseases. The Company's portfolio of product
candidates includes: (a) istaroxime, a Phase 2 candidate that
inhibits the sodium-potassium ATPase and also activates sarco
endoplasmic reticulum Ca2+ -ATPase 2a, or SERCA2a, for acute heart
failure and associated cardiogenic shock; preclinical SERCA2a
activators for heart failure; rostafuroxin for the treatment of
hypertension in patients with a specific genetic profile; and a
preclinical atypical protein kinase C iota, or aPKCi, inhibitor
(topical and oral formulations), being developed for potential
application in rare and broad oncology indications. The Company
also has a licensing business model with partnership out-licenses
currently in place.
Philadelphia, Pennsylvania-based EisnerAmper LLP, the company's
auditor since 2022, issued a "going concern" qualification in its
report dated April 16, 2024, citing that the company has suffered
recurring losses from operations and expects to incur losses for
the foreseeable future, which raises substantial doubt about its
ability to continue as a going concern.
The Company's net loss was $20.3 million and $39.2 million,
respectively, for the years ended Dec. 31, 2023 and 2022. As of
Sept. 30, 2024, the Company had an accumulated deficit of $848.8
million.
"Our future success is dependent on our ability to fund and
develop
our product candidates, and ultimately upon our ability to attain
profitable operations. We have devoted substantially all of our
financial resources and efforts to research and development
expense
and general and administrative expense to support such research
and
development. Net losses and negative cash flows have had, and will
continue to have, an adverse effect on our stockholders' equity
and
working capital, and accordingly, our ability to execute our
future
operating plans," Windtree stated in its Quarterly Report for the
period ended Sept. 30, 2024.
WORKDAY INC: Egan-Jones Retains BB+ Sr. Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company on March 18, 2025, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Workday, Inc. EJR also withdrew its rating on
commercial paper issued by the Company.
Headquartered in Pleasanton, California, Workday, Inc. provides
enterprise cloud-based applications.
WRESTLING COLLECTOR: Court Extends Cash Collateral Access to May 20
-------------------------------------------------------------------
Wrestling Collector Shop, LLC received another extension from the
U.S. Bankruptcy Court for the Southern District of Texas, Houston
Division, to use cash collateral.
The interim order authorized the company to use cash collateral
until May 20 to pay the expenses set forth in its budget.
Secured creditors including ODK Capital LLC, Funding Metrics LLC,
Fundation Group LLC, East Hudson Capital, LLC (doing business as
Global Capital Experts), Corporation Services Company and Camino
Financial SPV, I retain the same liens and security interests in
post-petition cash collateral and its proceeds.
As additional protection, East Hudson Capital will receive a
monthly payment of $100 starting this month.
The next hearing is set for May 21.
About Wrestling Collector Shop
Wrestling Collector Shop, LLC a specialty retailer based in
Cypress, Texas.
Wrestling Collector Shop sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No.
25-30276) on January 15, 2025, listing up to $50,000 in assets and
between $100,000 and $500,000 in liabilities. Jarrod Martin, Esq.,
a practicing attorney in Houston, serves as Subchapter V trustee.
Judge Alfredo R. Perez handles the case.
The Debtor is represented by:
Reese W Baker, Esq.
Baker & Associates
Tel: 713-869-9200
Email: courtdocs@bakerassociates.net
WST INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: WST Industries, LLC
3015 Beectree Drive
Sanford NC 27330
Business Description: Founded in 2018, WST Industries specializes
in providing custom metal parts and
assemblies for industries such as
automation, life sciences, pharmaceuticals,
and automotive. The Company offers services
like laser cutting, machining, welding, and
metal reshaping, with capabilities for both
prototype and mass production. WST
Industries operates from a 31,000 sq. ft.
facility equipped with advanced technology
to meet diverse customer needs.
Chapter 11 Petition Date: March 28, 2025
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 25-01123
Judge: Hon. Pamela W. McAfee
Debtor's Counsel: William Kroll, Esq.
EVERETT GASKINS HANCOCK TUTTLE HASH LLP
220 Fayetteville Street 300
Raleigh NC 27601
Tel: 919-755-0025
E-mail: bill@eghlaw.com
Total Assets: $492,708
Total Liabilities: $2,290,784
The petition was signed by Timothy Skibitsky as president.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/QXAN3RY/WST_Industries_LLC__ncebke-25-01123__0001.0.pdf?mcid=tGE4TAMA
YANKE CONSTRUCTION: Seeks Chapter 11 Bankruptcy in Michigan
-----------------------------------------------------------
On March 28, 2025, Yanke Construction Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of Michigan. 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 Yanke Construction Inc.
Yanke Construction Inc. is a Michigan-based construction company
operating out of Walled Lake.
Yanke Construction Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-43176) on March 28,
2025. In its petition, the Debtor reports estimated assets between
$100,000 and $500,000 and estimated liabilities between $1 million
and $10 million.
Honorable Bankruptcy Judge Mark A. Randon handles the case.
The Debtor is represented by John J. Stockdale, Jr., Esq. at
Schafer and Weiner, PLLC.
YOUR BATH: Gets Interim OK to Use Cash Collateral
-------------------------------------------------
Your Bath & Kitchen, LLC received interim approval from the U.S.
Bankruptcy Court for the Middle District of Pennsylvania to use
cash collateral.
The Debtor's cash needs are immediate in that it needs funds to pay
lease obligations, payroll to employees, utilities, and materials
for clients.
As protection, Kalamata Capital was granted post-petition
replacement liens on all assets of the Debtor acquired after the
petition date.
In addition, Kalamata will be granted a superpriority claim in case
the replacement liens are not sufficient to protect its
collateral.
A final hearing is set for April 15.
Kalamata held the first lien, perfected security interest in, among
other things, the Debtor's cash, accounts receivable, and inventory
to secure payment of the indebtedness owed.
Other junior lienholders of the Debtor's cash collateral are
Spartan Business Solutions, LLC, Apex Funding, LLC, and National
Funding, Inc.
About Your Bath & Kitchen
Your Bath & Kitchen, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Pa. Case No. 25-00634) on March
11, 2025, listing up to $500,000 in assets and up to $1 million in
liabilities. Gregory Clouser, a member of Your Bath & Kitchen,
signed the petition.
Judge Henry W. Van Eck oversees the case.
Craig A. Diehl, Esq., at Law Offices of Craig A. Diehl, represents
the Debtor as bankruptcy counsel.
YOUTHFUL SOLUTIONS: Gets Interim OK to Use Cash Collateral
----------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Texas, Austin
Division issued an interim order allowing Youthful Solutions, LLC
to use cash collateral.
The interim order authorized the company to use cash collateral in
accordance with its budget. Spending must not exceed 10% per line
item or 5% in the aggregate without written consent from
lienholders.
As protection, Ascentium Capital, LLC and the Small Business
Administration will be granted replacement liens on all
post-petition assets, with the same validity and priority as their
pre-bankruptcy liens.
A final hearing is scheduled for April 9.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/i07NJ from PacerMonitor.com.
About Youthful Solutions LLC
Youthful Solutions, LLC operates a med spa offering services such
as weight management, Botox, and hormone therapy.
Youthful Solutions sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-10319-smr) on March
10, 2025, listing up to $500,000 in assets and up to $10 million in
liabilities. Wesley Gene Markum, chief executive officer of
Youthful Solutions, signed the petition.
Judge Shad Robinson oversees the case.
The Debtor is represented by:
Frank B. Lyon, Esq.
P.O. Box 50210
Austin, TX 78763-0210
Tel: (512) 345-8964
frank@franklyon.com
ZIPS CAR WASH: Seeks to Hire Ordinary Course Professionals
----------------------------------------------------------
Zips Car Wash, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Texas to retain non-bankruptcy
professionals in the ordinary course of business.
The Debtors need ordinary course professionals to perform services
for matters unrelated to these Chapter 11 cases.
The Debtors seek to pay OCPs 100 percent of the fees and expenses
incurred.
The Debtors do not believe that any of the ordinary course
professionals have an interest materially adverse to them, their
estates, creditors, or other parties in interest in connection with
the matter upon which they are to be engaged.
The OCPs include:
Tier 1 OCPs
Faegre Drinker Biddle & Raeth, LLP
-- Legal
Ryan LLC
-- Tax
CBIZ MHM, LLC
-- Accounting and Tax
Tier 2 OCPs
Rose Law Firm
-- Legal
Wolters Kluwer
-- Tax
CyberGuard Compliance, LLP
-- Payment Card Industry Compliance
Greenspoon Marder LLP
-- Legal
Armanino, LLP
-- 401(K) Audit Related
About Zips Car Wash, LLC
Zips Car Wash LLC and affiliates are among the largest privately
owned express car wash operators in the U.S., offering advanced car
wash services using cutting-edge chemistry like Ultra HD Glaze and
Graphene-Ceramic Fusion X to deliver superior results, including
glossy tires, streak-free windows, and a well-protected paint job.
Founded in 2004 with just two locations in rural Arkansas, the
Debtors have expanded significantly through strategic acquisitions,
now operating over 260 locations across 23 states. Headquartered in
Plano, Texas, the Debtors run their businesses under the Zips, Jet
Brite, and Rocket Express brands and serve their customers through
two core revenue channels: a traditional pay-per-wash format and
Zips Unlimited, their flagship monthly subscription program with
over 600,000 members.
Zips Car Wash LLC and affiliates sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80069)
on February 5, 2025. In its petition, the Debtor reports estimated
assets between $500 million and $1 billion and estimated
liabilities between $1 billion and $10 billion.
Honorable Bankruptcy Judge Michelle V. Larson handles the case.
The Debtors' local bankruptcy counsel is Jason S. Brookner, Esq.,
Aaron M. Kaufman, Esq., and Amber M. Carson, Esq., at Gray Reed,
Dallas, Texas.
The Debtors' general bankruptcy counsel is Joshua A. Sussberg,
Esq., and Ross J. Fiedler, Esq., at Kirkland & Ellis LLP, in New
York, and Lindsey Blumenthal, Esq., at Kirkland & Ellis LLP,
Chicago, Illinois.
The Debtors' investment banker is Evercore Group LLC. The Debtors'
financial advisor is Alixpartners LLP. The Debtors' Noticing &
Claims Agent is Kroll Restructuring Administration LLC. The
Debtors' Real Estate Consultant & Advisor is Hilco Real Estate LLC.
The Debtors' tax advisor is PWC US TAX LLP.
ZW DATA: Subsidiary Acquires Rahula Digital Media Shares
--------------------------------------------------------
ZW Data Action Technologies Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that
ChinaNet Investment Holding Limited, a British Virgin Islands
company and an indirect wholly-owned subsidiary of ZW Data,
acquired the 10,000 shares of Rahula Digital Media (HK) Limited, a
Hong Kong company that Vickie Chan, an individual owned, pursuant
to that certain Share Sale and Purchase Agreement, dated March 3,
2025, entered into by and between the Purchaser and the Seller.
About ZW Data Action Technologies
Beijing, China-based ZW Data Action Technologies Inc., established
in 2003, is an ecological enterprise that provides digital services
to sales and marketing channels through blockchain, big data, and
precision marketing. ZW Data Action is committed to empowering SMEs
to achieve more efficient and accurate operations and management,
resulting in additional value for clients.
Hong Kong, China-based ARK Pro CPA & Co, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated June 28, 2024, citing that the Company has an accumulated
deficit from recurring net losses and significant net operating
cash outflow for the year ended December 31, 2023. All these
factors raise substantial doubt about its ability to continue as a
going concern.
As of June 30, 2024, ZW Data Action Technologies had $10.8 million
in total assets, $5.6 million in total liabilities, and $5.3
million in total stockholders' equity.
[] CFP Board Proposes Rule Changes on Past Bankruptcies
-------------------------------------------------------
Certified Financial Planner Board of Standards, Inc. is requesting
public comment on proposed changes to its Procedural Rules for
those seeking CFP(R) certification. CFP Board upholds its Fitness
Standards through the peer-review process set forth in the
Procedural Rules. This proposal improves CFP Board's existing
process for evaluating the ethical fitness of candidates for CFP(R)
certification and former CFP(R) professionals with a single prior
bankruptcy or multiple misdemeanor convictions involving an alcohol
and/or drug-related offense.
As part of the revision process, CFP Board actively seeks input
from various stakeholders, including practitioners, candidates,
firms, membership organizations and the public. The deadline to
submit comments is Friday, April 25, 2025.
CFP Board intends to modify Article 5 of the Procedural Rules to
provide an expedited mechanism for assessing the fitness of
candidates with a single bankruptcy filing and multiple misdemeanor
convictions involving a second (or more) alcohol and/or
drug-related offense that occurred some time ago. A candidate who
had a bankruptcy in the past (but no longer is demonstrating an
inability to manage their financial affairs) may attain CFP(R)
certification with a Caution or a Public Notice depending on how
long ago the bankruptcy occurred and whether the individual was
providing professional services at the time of the bankruptcy.
Similarly, a candidate with multiple misdemeanor convictions
involving an alcohol and/or drug-related offense may attain CFP(R)
certification with a Caution if the most recent alcohol and/or
drug-related offense was seven or more years ago.
The proposed revisions result in outcomes similar to those under
CFP Board's existing practices. Consequently, adopting the proposed
revised Procedural Rules will maintain the integrity of CFP(R)
certification while reducing the volume of cases that the
Disciplinary and Ethics Commission (Commission) will be required to
handle.
The proposed changes are as follows:
Petitions Involving Single Bankruptcy
If (a) Respondent or an entity over which Respondent was a Control
Person (as defined in the Code and Standards) engaged in conduct
that resulted in a single personal bankruptcy or business
bankruptcy filing or adjudication,
(b) Respondent has no other Bankruptcy Matter or other conduct that
requires Respondent to file a Petition for Fitness, and
(c) Respondent provides information sufficient for Enforcement
Counsel to find (and Enforcement Counsel finds) no probable cause
to believe that Respondent's current financial circumstances
demonstrate an inability to manage responsibly Respondent's or
Respondent's business's financial affairs, then, with Respondent's
consent, Enforcement Counsel may deliver to Respondent, and
contemporaneously file with DEC Counsel:
1. A Joint Motion for Order Granting Petition with Caution if
(1) Respondent's Bankruptcy Matter was filed 10 or more years prior
to Respondent's application and Respondent was not providing
Professional Services (as defined in the Code and Standards) at the
time of the Bankruptcy Matter, or
(2) Respondent's Bankruptcy Matter was filed 15 or more years prior
to Respondent's application. 2. A Joint Motion for Order Granting
Petition with Public Notice if
(1) Respondent's Bankruptcy Matter was filed less than 10 years
prior to Respondent's application, or
(2) Respondent's Bankruptcy Matter was filed more than 10 and less
than 15 years prior to Respondent's application and Respondent was
providing Professional Services (as defined in the Code and
Standards) at the time of the Bankruptcy Matter.
In the case of (i) or (ii) above, DEC Counsel must grant the Motion
and issue the Order, the DEC must not hold a hearing, and CFP Board
must not charge Respondent the adjudication fee. CFP Board will
publish an Order Granting Petition with a Public Notice in
accordance with Article 17.7. The Order Granting Petition with
Caution and the Order Granting Petition with a Public Notice are
not subject to appeal under Article 15. Enforcement Counsel's
finding of no probable cause under Rule 5.5(c) is not admissible in
any subsequent proceeding.
Petitions Involving Certain Relevant Misdemeanor Convictions
If Respondent has a Relevant Misdemeanor Conviction involving a
second (or more) alcohol and/or drug-related offense and no other
conduct that requires Respondent to file a Petition for Fitness,
then with Respondent's consent, Enforcement Counsel may deliver to
Respondent, and contemporaneously file with DEC Counsel, a Joint
Motion for Order Granting Petition with Caution if the most recent
alcohol and/or drug-related offense was 7 or more years prior to
Respondent's application. DEC Counsel must grant the Motion and
issue the Order, the DEC must not hold a hearing, and CFP Board
must not charge Respondent the adjudication fee. The Order Granting
Petition with Caution is not subject to appeal under Article 15.
"CFP Board is committed to upholding the integrity of CFP(R)
certification while ensuring a fair and efficient review process
for candidates," said CFP Board CEO Kevin R. Keller, CAE. "We
encourage stakeholders to share their input and help shape a
process that balances consumer protection with a clear, consistent
path to certification."
CFP Board welcomes all input on the proposed revised Procedural
Rules, which are central to upholding CFP Board's Fitness
Standards.
Comments can be submitted to CFP Board through an online form on
CFP.net. CFP Board will post all comments on the CFP.net website
with the commenter's name and the date submitted. The deadline for
comments is Friday, April 25, 2025.
CFP Board will review comments and determine what changes, if any,
to make to the proposed revised Procedural Rules.
ABOUT CFP BOARD
CFP Board is the professional body for personal financial planners
in the U.S. CFP Board consists of two affiliated organizations
focused on advancing the financial planning profession for the
public's benefit. CFP Board of Standards sets and upholds standards
for financial planning and administers the prestigious CERTIFIED
FINANCIAL PLANNER(R) certification -- widely recognized by the
public, advisors and firms as the standard for financial planners
-- so that the public has access to the benefits of competent and
ethical financial planning. CFP(R) certification is held by more
than 100,000 people in the U.S. CFP Board Center for Financial
Planning addresses diversity and workforce development challenges
and conducts and publishes research that adds to the financial
planning profession's body of knowledge.
[] Getzler Henrich's Krakora Named to Bankruptcy College Fellows
----------------------------------------------------------------
Getzler Henrich & Associates LLC announces that Kevin A. Krakora,
CTP, Senior Managing Director, has been named a Fellow in the 36th
Class of the American College of Bankruptcy. This distinguished
honor is awarded to leading professionals who have demonstrated
excellence, integrity, and significant contributions to the field
of bankruptcy and insolvency.
The American College of Bankruptcy is an honorary public service
association that recognizes and brings together preeminent
bankruptcy and insolvency professionals from across the United
States and internationally. Fellows are selected through a
rigorous, invitation-only process based on their professional
achievements, commitment to scholarship, and service to the
insolvency profession. The Class 36 Fellows were formally inducted
during the College's Annual Meeting in March 2025 in Washington,
D.C.
With over 30 years of experience in corporate turnarounds,
financial restructurings, and operational performance improvement,
Mr. Krakora has advised underperforming companies, boards of
directors, and executive teams across a wide range of industries.
He has served in key senior executive roles, including Chief
Executive Officer, Chief Restructuring Officer and Independent
Director, and has led complex restructuring engagements involving
distressed companies, debt workouts, and strategic
transformations.
"Kevin's induction into the American College of Bankruptcy reflects
his deep experience in restructuring and his commitment to the
profession," said William H. Henrich, Co-Chairman of Getzler
Henrich. "This recognition is well deserved, and we are pleased to
see his work acknowledged by the College."
Mr. Krakora previously served as President and Chair of TMA Global,
the worldwide professional association for turnaround and corporate
renewal professionals, and is a Certified Turnaround Professional.
His industry experience spans automotive, manufacturing,
transportation, healthcare, and more.
ABOUT GETZLER HENRICH & ASSOCIATES LLC
Getzler Henrich & Associates LLC, a Hilco Global Company
(www.hilcoglobal.com), is one of the nation's oldest and most
respected names in middle-market corporate restructuring and
operations improvement and has successfully worked with thousands
of companies to achieve growth and profitability. Working with a
wide range of companies, including publicly held firms, private
corporations, and family-owned businesses, Getzler Henrich's
expertise spans more than fifty industry sectors, from "new
economy" technology and service firms to "old economy"
manufacturing and distribution businesses. For more information on
Getzler Henrich's expertise, please visit www.getzlerhenrich.com.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. 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
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
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
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
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
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
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.
*********
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Troubled Company Reporter is a daily newsletter co-published
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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.
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*** End of Transmission ***