/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/250417.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, April 17, 2025, Vol. 29, No. 106 Headlines 180 LA PATA 2020: Seeks Chapter 11 Bankruptcy in Delaware 23ANDME HOLDING: Gets Initial OK for Stock Transfer Protocol 23ANDME HOLDING: Section 341(a) Meeting Set for May 2 808 BROADWAY: Broadway Condominium Up for Sale on May 14 8607 WURZBACH: Hires Resolut RE as Real Estate Broker ALAMANCE COMMUNITY: Moody's Affirms 'Ba2' Revenue Bond Rating ALEXA HOLDINGS: Case Summary & Eight Unsecured Creditors APPLIED MINERALS: Seeks Approval for Bankruptcy Disclosure Plan AYB FUNDING II: Secured Party to Sell Class A Interests on April 29 AZZUR GROUP: Gets Court Okay to Seek Chapter 11 Plan Votes BARRETTS MINERALS: Needs Autonomy in Solving Chapter 11, Says Judge BEELINE HOLDINGS: CEO Invests $900K in Series G Offering BEELINE HOLDINGS: CEO Nicholas Liuzza Holds 37.2% Equity Stake BENHAM ORTHODONTICS: PCO Reports Patient Concerns BRIGHTMARK PLASTICS: Receives Final Chapter 11 Financing Approval CAPSTONE COMPANIES: Rodney Christopher Ems Holds 5.1% Stake CAREPOINT HEALTH: Exits Chapter 11, HRH Takes Over 3 Hospitals CHIARO TECHNOLOGY: Seeks Chapter 15 Bankruptcy in Delaware CREATIVEMASS HOLDINGS: Case Summary & 10 Unsecured Creditors CREATIVEMASS HOLDINGS: Proposes Subchapter V Plan to Resolve Case DEREK L. MARTIN: Hires Bernard M. Hansen as Bankruptcy Counsel DMD FLORIDA: Gets Final OK to Use Lender's Cash Collateral ECS BRANDS: Seeks Chapter 11 Bankruptcy in Colorado ELETSON HOLDING: Reed Smith Gets Stay Order in Shipping Feud ELITE SURGERY: U.S. Trustee Appoints Tamar Terzian as PCO ELNUNU MEDICAL: U.S. Trustee Appoints Eric Huebscher as PCO ENSONO INC: Moody's Alters Outlook on 'B3' Secured Debt to Positive EXACTECH INC: Court Approves Disclosure Statement EXACTECH INC: Judge Expresses Concern Over Chapter 11 Rising Fees EXACTECH INC: Plan Confirmation Hearing Set for May 28 FANATICS HOLDINGS: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable FOUNDATION BUILDING: Moody's Cuts CFR to B3, Outlook Stable FRANCIS TRUST: Case Summary & Three Unsecured Creditors FRENCH SEAM: Wins Final OK to Use Cash Collateral FUEL FITNESS: Court Extends Cash Collateral Access Until May 21 FUEL HOMESTEAD: Court Extends Cash Collateral Access to May 21 FUEL REYNOLDA: Court Extends Cash Collateral Access to May 21 FULCRUM BIOENERGY: Gets Court Okay for Ch. 11 Plan After Asset Sale GEO GROUP: Fitch Assigns 'B+' LongTerm IDR, Outlook Stable GLOBAL CLEAN ENERGY: Case Summary & 30 Largest Unsecured Creditors GLOBAL CLEAN ENERGY: Enters Chapter 11 With Over $2-Bil. in Debt GLOBAL CLEAN ENERGY: Secures Deal With Lenders, Project Contractor GLOBAL CONCESSIONS: Hires Keck Legal LLC as Legal Counsel GO LAB: Hires Pierce Atwood LLP as Special Counsel GO LAB: Seeks to Hire Berry Dunn McNeil as Tax Accountant GRAND AUGUSTA: Case Summary & One Unsecured Creditor HALL OF FAME: Reports $55.9 Million Net Loss in 2024 HEALTHLYNKED CORP: Issues $420K Note, Extends $1.2M Debt Maturity HIGH POINT: Seeks Chapter 11 Bankruptcy in Tennessee HIGHBANK RESOURCES: Files Corporate Assignment in Bankruptcy HOOTERS OF AMERICA: June 16, 2025 Claims Filing Deadline Set HOUSE SPIRITS: Intends to Sell Barrels of Whiskey in Chapter 11 INTEGRITY REAL: Hires Onsager Fletcher Johnson as Legal Counsel INTERNATIONAL LAND: Increases Authorized Shares to 250 Million JAC RENTALS: Seeks to Hire Patrick Gros as Accountant JACKSON HOSPITAL: Court Won't Stay Post-Petition Financing Order JGA DEVELOPMENT: To Sell Montclair Property to Kamas Park for $1.2M JOANN INC: Selling Creativebug Assets via Hilco Streambank JUMPSTAR ENTERPRISES: Claims to be Paid From Continued Operations JUNK SHUTTLE: Unsecureds Will Get 16% of Claims over 3 Years K & M AMUSEMENT: Amends Unsecured Claims Pay Details KB3 2275: Seeks to Hire Divine Law Office as Special Counsel LAMB WESTON: S&P Alters Outlook to Negative, Affirms 'BB+' ICR LAVIE CARE: No Decline in Resident Care, PCO Report Says LEFEVER MATTSON: Court OKs Deal to Use Nationstar's Cash Collateral LINDO HOLDINGS: Voluntary Chapter 11 Case Summary LUXURY TIME: Hires C. Stephen Gurdin Jr. as Legal Counsel MAJESTICS MOTORS: Hires Law Office of Barry R. Levine as Counsel MAJORDRIVE HOLDINGS: Moody's Alters Outlook on 'B3' CFR to Negative MAWSON INFRASTRUCTURE: Inks Digital Colocation Deal With Canaan MONTEREY CAPITOLA: Unsecureds to Get 100 Cents on Dollar in Plan MULTI ENTERPRISES: Hires Brian K. McMahon PA as Counsel NEW DIRECTION: Unsecureds Will Get 43% of Claims over 60 Months NEWELL BRANDS: Moody's Cuts CFR to 'Ba3', Outlook Negative NIKOLA CORP: Lucid Group to Buy Arizona Assets Post-Bankruptcy OFFICE PROPERTIES: Fails to Meet Nasdaq's Bid Price Rule OPTINOSE INC: Registers 402,336 Additional Shares Under 2010 Plan OPTINOSE INC: Reports $21.5 Million Net Loss in 2024 ORB TERTIUS: Court OKs Deal to Use Cash Collateral Until April 30 PREPAID WIRELESS: Gets Final OK to Use Cash Collateral PROSPECT MEDICAL: Hires Vincent P. Slusher as Conflicts Counsel PROSPECT MEDICAL: Seeks to Hire BDO USA PC as Tax Consultant PUBLISHERS CLEARING HOUSE: Gets Okay to Pay Prizes in Chapter 11 QUEST PATENT: Reports $2.5 Million Net Loss in 2024 REBELLION POINT: Case Summary & Seven Unsecured Creditors RIVERSIDE COURT: Unsecureds Will Get 13% of Claims over 36 Months ROCKRIDGE2016 LLC: Voluntary Chapter 11 Case Summary RONALD JINSKY: Seeks Subchapter V Bankruptcy in Wisconsin RYAN SPECIALTY: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable SCRIPPS (E.W.): Moody's Cuts CFR to Caa1 & Unsecured Notes to Caa3 SHARPLINK GAMING: Gets Nasdaq Extension to Regain Compliance SHARPLINK GAMING: OKs 2025 Executive and Board Compensation Plans SINGH BROS: Unsecured Creditors Will Get 100% of Claims in Plan SIZZLING PLATTER: Bain Capital Deal No Impact on Moody's 'B3' CFR SMALL FORTUNE: Seeks to Hire Sasser Law Firm as Attorney SUNSHINE HOLDINGS: Selling West Palm Beach Property at Auction SWC INDUSTRIES: To Sell Oak Creek Property to Beazer East TEXAS AUTO: Seek Subchapter V Bankruptcy in Texas UNITED FIBER: Hires Value Resources CPA's P.C. as Tax Accountant VIBRANTZ TECHNOLOGIES: Moody's Alters Outlook on 'B3' CFR to Neg. VOLITIONRX LTD: Secures $2.3 Million in Direct Offering WELLPATH HOLDINGS: PCO Reports No Staffing Challenges X4 PHARMACEUTICALS: Net Loss Narrows to $37.5 Million in 2024 ZAHRCO ENTERPRISES: Hires Paragon Law LLC as Legal Counsel ZARIFIAN ENTERPRISES: Creditors to Get Proceeds From Liquidation ZIPS CAR WASH: U.S. Trustee Challenges Chapter 11 Plan Releases [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 180 LA PATA 2020: Seeks Chapter 11 Bankruptcy in Delaware --------------------------------------------------------- On April 11, 2025, 180 La Pata 2020 LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. According to court filing, the Debtor reports $60,112,922 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 180 La Pata 2020 LLC 180 La Pata 2020 LLC is a single-asset real estate debtor, as defined under 11 U.S.C. Section 101(51B). The Debtor owns a commercial property located at 180 Avenida La Pata, San Clemente, CA 92673, with an estimated current value of $7.3 million. 180 La Pata 2020 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del.Case No. 25-10690) on April 11, 2025. In its petition, the Debtor reports total assets of $8,062,969 and total liabilities of $60,112,922. Honorable Bankruptcy Judge Karen B. Owens handles the case. The Debtor is represented by Charles J. Brown, III, Esq. at GELLERT SEITZ BUSENKELL & BROWN, LLC. 23ANDME HOLDING: Gets Initial OK for Stock Transfer Protocol ------------------------------------------------------------ The Hon. Brain C. Walsh of the U.S. Bankruptcy Court for the Eastern District of Missouri entered an interim order for the procedures for certain transfers of and declaration of worthlessness with respect to common stock of 23andMe Holding Co. A final hearing to approve the procedures for transfer of common stock is on April 22, 2025, at 1:30 p.m. (CT). Any person or entity that, at any time on or after the Petition Date, is or becomes a Substantial Shareholder must file with the Court, and serve upon: i) 23andMe Holding Co. Attention: Legal Department 870 Market Street Room 415 San Francisco, CA, 94102 Email: Legal@23andme.com; ii) proposed counsel to the Debtors: Paul, Weiss, Rifkind, Wharton & Garrison LLP Attn: Christopher Hopkins Jessica I. Choi Grace C. Hotz 1285 Avenue of the Americas New York, New York 10019 Email: chopkins@paulweiss.com jchoi@paulweiss.com ghotz@paulweiss.com) iii) proposed co-counsel to the Debtors: Carmody MacDonald P.C. Attn: Thomas Riske Nathan Wallace 120 S. Central Avenue Suite 1800 St. Louis, Missouri 63105 Email: thr@carmodymacdonald.com nrw@carmodymacdonald.com A "50% Shareholder" is any person or Entity that currently is or becomes a "50-percent shareholder" within the meaning of section 382(g)(4)(D) of the IRC and the applicable Treasury Regulations. 23ANDME HOLDING: Section 341(a) Meeting Set for May 2 ----------------------------------------------------- The U.S. Trustee for Region 13 will convene a meeting of creditors of 23andMe Holding Co. dba VG Acquisition Corp. on May 2, 2025, at 10:00 a.m. (CT) at 870 Market Street, Room 415, San Francisco, California 94102. In accordance with Section 341 of the Bankruptcy Code, the meeting of the Debtor's creditors will be held telephonically. The call-in instructions are as follows: Phone: 844-767-5651 Passcode: 9613859 The Debtors' representative must attend the meeting to be questioned under oath. Creditors may attend but are not required to do so. 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; Morgan, Lewis & Bockius LLP; and Carmody MacDonald PC are serving as legal counsel to 23andMe and Alvarez & Marsal North America, LLC as restructuring advisor. Lewis Rice LLC, Moelis & Company LLC, and Goodwin Procter LLP are serving as special local counsel, investment banker, and legal advisor to the Special Committee of 23andMe's Board of Directors, respectively. Reevemark and Scale are serving as communications advisors to the Company. Kroll is the claims agent. 808 BROADWAY: Broadway Condominium Up for Sale on May 14 -------------------------------------------------------- Pursuant to an amended final judgment of foreclosure and sale dated Sept. 11, 2024, and entered on Jan. 26, 2025, Paul Sklar, Esq., referee, will sell at public auction, at New York County Courthouse, Supreme Court, 60 Centre Street, New York, New York 10007 on May 14, 2025, at 2:15 p.m., the premises situate, lying and being in the Borough of Manhattan, City, County and State of New York, known as Condominium Unite A, the retail unit in the building designated as 808 Broadway Condominium, together with an undivided 22% interest in the common elements of the property, as described in the declaration. Block: 557 Lot: 1001. RSS WFRB2013-C14-NY 8BA LLC, plaintiff against 808 Broadway Associates LLC, et al (defendants). Said premises known as Condominium Unit A, Retail Unit in 808 Broadway, New York, NY 10013. Approximate amount of lien $17,619472.81 plus interest & costs. Premises will be sold subject to provisions of filed amended final judgment and terms of sale. Index Number 655763/2021. The referee can be reached at: Paul Sklar, Esq Referee Holland & Knight LLP 787 Seventh Avenue 31st Floor New York, NY 10019 8607 WURZBACH: Hires Resolut RE as Real Estate Broker ----------------------------------------------------- 8607 Wurzbach Management, LP seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ Texas RS LLC dba RESOLUT RE as real estate broker. The firm will market and sell the Debtor's commercial buildings which are part of a small complex near the intersection of Wurzbach and Fredericksburg Roads in the medical center area, with a physical address of 8607 and 8647 Wurzbach Road, San Antonio, Texas. The firm will be paid a commission of 6 percent of the sales price. 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: Raymond ("Ray") Kang, CCIM Texas RS LLC dba RESOLUT RE 10127 Morocco St, Suite 195 San Antonio, TX 78216 Telephone: (210) 374-6111 Email: rkang@resolutre.com About 8607 Wurzbach Management, LP 8607 Wurzbach Management, L.P. is a Texas limited partnership with its principal place of business and all of its assets located in San Antonio, Texas. It owns and operates three commercial buildings which are part of a small complex near the intersection of Wurzbach and Fredericksburg Roads in the medical center area, with a physical address of 8607 and 8647 Wurzbach Road, San Antonio, Texas. The current occupancy rate for the complex is approximately 90%. 8607 Wurzbach Management filed Chapter 11 petition (Bankr. W.D. Texas Case No. 23-51208) on Sept. 4, 2023, with $1 million to $10 million in assets and $500,001 to $1 million in liabilities. Savitri Frizzell of 8607 Wurzbach Corporation, general partner of 8607 Wurzbach Management, signed the petition. Judge Michael M. Parker oversees the case. H. Anthony Hervol, Esq., at the Law Office of H. Anthony Hervol, represents the Debtor as bankruptcy counsel. ALAMANCE COMMUNITY: Moody's Affirms 'Ba2' Revenue Bond Rating ------------------------------------------------------------- Moody's Ratings has affirmed Alamance Community School, NC's Ba2 revenue bond rating. The charter school has $21.7 million in outstanding debt. The outlook is stable. RATINGS RATIONALE The affirmation of the Ba2 rating reflects Alamance Community School's very high leverage, stable student demand, and good enrollment trends. The school's financial leverage from debt will remain high for the foreseeable future as spendable cash and investments to debt was 7% for fiscal 2024. The school's enrollment growth has been steady, reaching 737 students in the current school year up from 532 students three years ago, as it has expanded to serve additional grade levels. Based on current enrollment data, management expects to reach 840 students in the 2025-26 school year when the school adds 8th grade. The school will need to continue to grow its enrollment in order to keep pace with rising debt service expenses in the coming years. Based on fiscal 2025 operating results through March, annual debt service coverage is projected to be a solid1.7x, although cash flow from operations will not cover maximum annual debt service, demonstrating the need for continued enrollment growth. Liquidity remains adequate at 83 days cash on hand as of fiscal 2024. Alamance's participation in a state-managed pension plan adds to its fixed cost burden; combined annual debt service and current pension contribution was a moderate 14% of fiscal 2024 operating revenue. RATING OUTLOOK The stable outlook reflects the likelihood of continued enrollment growth, driven primarily by the addition of 8th grade for the 2025-26 school year. This growth, combined with active financial management, is expected to support healthy operating cash flow margins and the maintenance of adequate coverage as debt service expenses increase in the coming years. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Material reduction in financial leverage -- Sustained revenue growth combined with gains in total cash and investments FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Any increase in financial leverage -- Enrollment growth that falls below projections -- Reduced liquidity below 70 days cash on hand and/or debt service coverage below 1.1x PROFILE Alamance is a self-managed and single site charter school located along Interstate 40 in Haw River, NC, between Greensboro and Durham. Alamance's curriculum focuses on Project Based Learning and Responsive Classroom. The school currently serves 737 students in grades K-7, but will expand to serves students in 8th grade by the 2025-2026 school year. Alamance does not currently have plans to expand into high school and has entered into an articulation agreement with West Triangle High School, a project based learning high school, beginning in the 2026-2027. In 2025, the North Carolina State Board of Education approved a renewal for a ten year term (longest available), expiring on June 30, 2035. This is Alamance's first charter renewal. METHODOLOGY The principal methodology used in these ratings was US Charter Schools published in April 2024. ALEXA HOLDINGS: Case Summary & Eight Unsecured Creditors -------------------------------------------------------- Debtor: Alexa Holdings, Inc. 1506 Highway 70 West Garner, NC 27529 Business Description: Alexa Holdings Inc. owns MoonRunners Saloon, a Prohibition-era themed restaurant and bar based in Garner, North Carolina, known for its Southern-style cuisine and distinctive moonshine-focused drink menu. The establishment rose to prominence after being featured on the reality TV show Bar Rescue, which helped revamp its brand and operations. With locations in Garner and Dunn, the saloon continues to attract patrons with its creative cocktails, hearty dishes, and nostalgic ambiance. Chapter 11 Petition Date: April 14, 2025 Court: United States Bankruptcy Court Eastern District of North Carolina Case No.: 25-01347 Judge: Hon. Joseph N. Callaway Debtor's Counsel: Danny Bradford, Esq. PAUL D. BRADFORD, PLLC 455 Swiftside Drive, Suite 106 Cary, NC 27518-7198 Tel: (919) 758-8879 Fax: (919) 803-0683 E-mail: dbradford@bradford-law.com Total Assets: $231,831 Total Liabilities: $2,884,529 Charles Alexander signed the petition in his role as president. 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/E5UGRQI/Alexa_Holdings_Inc__ncebke-25-01347__0001.0.pdf?mcid=tGE4TAMA APPLIED MINERALS: Seeks Approval for Bankruptcy Disclosure Plan --------------------------------------------------------------- Applied Minerals, Inc., in connection with its filing for Chapter 11 bankruptcy protection on November 11, 2024, has filed with the United States Bankruptcy Court for the District of Utah a "Motion to Approve Disclosure Statement" and related solicitation procedures and deadlines. The Debtor has filed a proposed Disclosure Statement with Respect to Debtor's Plan of Reorganization. The Debtor has requested entry of an order, among other things: (a) approving the form and adequacy of the Proposed Disclosure Statement, (b) approving the proposed solicitation procedures (including establishing, for voting purposes only, a record holder date), (c) approving the form of ballots and balloting instructions, (d) establishing procedures for tabulating votes on the Plan, (e) establishing deadlines and procedures for proposing to the Debtor terms for a higher and better terms plan of reorganization, and (f) setting the date for a hearing on confirmation of the Debtor's Chapter 11 Plan of Reorganization. Parties wishing to object to the relief requested in the Motion to Approve Disclosure Statement must file an objection with the Bankruptcy Court on or before April 24, 2025, at United States Bankruptcy Court, 350 South Main Street, Room 301, Salt Lake City, UT 84101. A hearing on the Motion to Approve Disclosure Statement will be held on May 6, 2025, at 11:00 a.m. MT. Parties who wish to participate in the hearing should consult the Bankruptcy Court's website (https://www.utb.uscourts.gov) for the most up-to-date information regarding participation at a hearing via Zoom. About Applied Minerals, Inc Applied Minerals, Inc. is a minerals exploration and mining company. Applied Minerals, Inc. in Eureka, UT, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. D. Utah Case No. 24-25849) on Nov. 11, 2024, listing $1 million to $10 million in assets and $50 million to $100 million in liabilities. Christopher T. Carney as president and chief executive officer, signed the petition. Judge Joel T Marker oversees the case. COHNE KINGHORN, P.C. serve as the Debtor's legal counsel. AYB FUNDING II: Secured Party to Sell Class A Interests on April 29 ------------------------------------------------------------------- In accordance with applicable provisions of the Uniform Commercial Code as enacted in New York, DBD AYB Funding LLC, as administrative agent for DBD AYB Funding LLC and AYB Funding 100 LLC ("secured party") will sell 100% of the Class A limited liability membership interests in AY Phase II Development Company LLC, as more particularly described in that certain amended and restated pledged and security agreement, dated June 17, 2015, by and among secured party and AY Phase II Mezzanine LLC ("collateral") to the highest qualified bidder at public sale. The public sale will take place on April 29, 2025, at 9:15 a.m., both in person and remotely from the offices of Rosenberg & Estis PC, 733 Third Avenue, New York 10017, with access afforded in person and remotely via zoom or other web-based video conferencing and telephonic conferencing program selected by secured party. The sale was previously set for March 24, 2025. Secured party's understanding is that the principal assets of the Class A limited liability membership interests in AY Phase II Development Company LLC is the parcel of real property on the entire block bound by Six Avenue, Atlantic Avenue, Pacific Street and Carlton Street, and the western blockfront of Carlton Street between Atlantic and Pacific Street in the Prospect Heights section of Brooklyn, New York, identified as B5, B6, B7 and B8 located in Brooklyn, New York, and more particularly known as the air rights parcels above Block 1120 and Block 1211 and the terra firm known as Block 1120, Lots 19, 28, and 35 in Kings County, New York, as such collateral is described in that certain Schedule II to the omnibus first amendment and reaffirmation of loan documents dated as of June 17, 2015, by and among secured party, AY Phase II Mezzanine LLC, Forest City Enterprises Inc., Greenland US Holding Inc., and Greenland US Commercial Holding Inc. The sale will be conducted by Mannion Auctions LLC by Matthew Mannion. Interested parties who would like additional information regarding the sale must contact the agent for secured party, Nick Scribani of Newmark at (212) 372-2113 or Nick.Scribani@nmrk.com. Attorney for the Secured Party can be reached at: Rosenberg & Estis PC Attn: Eric S. Orenstein, Esq. 733 Third Avenue New York, New York 10017 Tel: (212) 551-8438 Email: eorenstein@rosenbergestis.com AZZUR GROUP: Gets Court Okay to Seek Chapter 11 Plan Votes ---------------------------------------------------------- Ben Zigterman of Law360 Bankruptcy Authority reports that Azzur Group, which provides services to pharmaceutical developers, can move forward with soliciting votes on its Chapter 11 liquidation plan after a judge approved the $56 million sale of its consulting division on Friday, April 11, 2025. 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. BARRETTS MINERALS: Needs Autonomy in Solving Chapter 11, Says Judge ------------------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that on Monday, April 14, 2025, a Texas bankruptcy judge said that if he approves talc miner Barretts Minerals Inc.'s continued Chapter 11 status, he must explore measures to reinforce its perceived autonomy from its parent company. 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. BEELINE HOLDINGS: CEO Invests $900K in Series G Offering -------------------------------------------------------- Beeline Holdings, Inc. announced that Chief Executive Officer and Co-Founder, Nick Liuzza, has invested an additional $900,000 into the company's ongoing Series G convertible equity offering. The investment was made at $5.10 per share on an as-converted basis (not including Warrants), representing a 205% premium to Beeline's closing stock price of $1.67 on March 24, 2025. As part of the transaction, Mr. Liuzza received warrants exercisable at $6.50 per share, which he has donated in full to St. Jude Children's Research Hospital. This investment is in addition to Mr. Liuzza's open market purchases during the week of March 17 in which he and an affiliated trust purchased a total of 43,150 shares of common stock for a total of $109,784 at purchase prices reflecting prevailing market prices, and to his prior investments in the Series G offering beginning in December. To date, since December 2024, Mr. Liuzza has invested $4,045,802 in addition to his prior investments. "Beeline is focused on driving revenue growth through mortgage origination and monetizing our proprietary lending technology," said Nick Liuzza, CEO and Co-Founder of Beeline Holdings. "We are committed to building long-term value and bringing innovation to an industry in need of modernization." The company remains focused on operational execution and believes its technology-driven approach will continue to distinguish it in a challenging mortgage environment. Further information about Mr. Liuzza's investment can be found in the Company's report filed on Form 8-K with the Securities and Exchange Commission, available at: https://tinyurl.com/yc8xpxhn. About Beeline Holdings Beeline Holdings f/k/a Eastside Distilling, Inc. is a forward-thinking mortgage lender leveraging cutting-edge technology to simplify and streamline the home financing process. The company is committed to providing a seamless, customer-centric experience while expanding its presence in the mortgage industry. The Woodlands, Texas-based M&K CPAS, PLLC, Beeline'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. Beeline incurred a net loss of $7.5 million during the year ended December 31, 2023. The Company have yet to file its Annual Report on Form 10-K for the year ended December 31, 2024. BEELINE HOLDINGS: CEO Nicholas Liuzza Holds 37.2% Equity Stake -------------------------------------------------------------- Nicholas Reyland Liuzza Jr. disclosed in a Schedule 13D (Amendment No. 1) filed with the U.S. Securities and Exchange Commission that as of March 24, 2025, he beneficially owned 3,026,748 shares of Beeline Holdings, Inc.'s common stock, representing 37.2% of the 6,995,901 outstanding shares of common stock. This includes 2,821,032 shares directly owned and 205,216 shares owned by a family trust over which he exercises dispositive and voting control. Nicholas Reyland Liuzza Jr. may be reached through: Michael Harris, Esq. 3001 PGA Blvd, Ste 305 Palm Beach Gardens, FL, 33410 Tel: 561-686-3307 A full-text copy of Mr. Liuzza's SEC report is available at: https://tinyurl.com/3asuk3km About Beeline Holdings Beeline Holdings f/k/a Eastside Distilling, Inc. is a forward-thinking mortgage lender leveraging cutting-edge technology to simplify and streamline the home financing process. The company is committed to providing a seamless, customer-centric experience while expanding its presence in the mortgage industry. The Woodlands, Texas-based M&K CPAS, PLLC, Beeline'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. Beeline incurred a net loss of $7.5 million during the year ended December 31, 2023. The Company has yet to file its Annual Report on Form 10-K for the year ended December 31, 2024. BENHAM ORTHODONTICS: PCO Reports Patient Concerns ------------------------------------------------- Susan Goodman, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Northern District of Texas her second report regarding the quality of patient care provided by Benham Orthodontics & Associates, P.A. In the first report, PCO reported that Benham anticipated moving back to a previously utilized office location after it was vacated by the former tenant. Ultimately, this did not occur, reportedly associated with the ongoing litigation between Benham's owner and its former business purchaser. The PCO noted that Benham continues to provide part-time office hours at the interim office location. The healthcare provider denied staffing, supply or equipment challenges. The PCO confirmed that the posting associated with her appointment remained in place at the office's check-out/appointment desk. In the interim reporting period, the PCO has not received any complaints or requests for a copy of the First Report. The PCO cited the parental feedback received by Benham regarding the inability to obtain what they reportedly expected in pro-rated refunds from the former practice purchaser. Parents provided Benham with a copy of a legal letter received from the purchaser entity denying any wrongdoing related to refund amounts and directing all billing communication through the purchaser's legal counsel. Ms. Goodman continues to appreciate that the patient concerns in this case appear grounded in the underlying business litigation rather than with the care being provided by the Benham entity. The PCO believes accruing additional site visit costs is not in the best interests of the facts of this case. Moreover, the Benham patients simply want to seek care at a convenient location from a provider that they clearly trust given the continued distance patients have been willing to travel to receive orthodontic care with Benham's orthodontist. To the extent the bankruptcy court has any jurisdiction to mediate and resolve the underlying dispute, such resolution would be in the best interests of the patients. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=7rkHrD from PacerMonitor.com. The ombudsman may be reached at: Susan N. Goodman, RN JD Pivot Health Law, LLC P.O. Box 69734 Oro Valley, AZ 85737 Ph: 520.744.7061|Fax: 520.575.4075 sgoodman@pivothealthaz.com About Benham Orthodontics & Associates Benham Orthodontics & Associates, P.A. provides orthodontic care to children and adults. It is based in Colleyville, Texas, and conducts business under the name Benham Family Orthodontics. Benham sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 24-42784) on August 7, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Adam Benham, director, signed the petition. Judge Edward L. Morris presides over the case. Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC represents the Debtor as bankruptcy counsel. BRIGHTMARK PLASTICS: Receives Final Chapter 11 Financing Approval ----------------------------------------------------------------- Ben Zigterman of Law360 Bankruptcy Authority reports that on Monday, April 14, 2025, a Delaware bankruptcy judge gave final approval for an Indiana recycling plant operator to obtain financing from its parent company to fund its Chapter 11 proceedings, after the company resolved an objection raised by bondholders. About Brightmark Plastics Renewal Brightmark Plastics Renewal LLC utilize proprietary processes and licensed technology to convert hard-to-recycle plastic waste into valuable chemical feedstocks that can be used to make new plastics. This innovative approach helps reduce plastic waste by repurposing hydrocarbons that would otherwise end up in landfills, contributing to a more sustainable environment. Brightmark Plastics Renewal and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10472) on March 16, 2025. In the petitions signed by Craig R. Jalbert, chief restructuring officer, Brightmark Plastics Renewal disclosed up to $500 million in both assets and liabilities. Judge Laurie Selber Silverstein oversees the case. The Debtors tapped Potter Anderson & Corroon, LLP as bankruptcy counsel, SSG Capital Advisors, LLC as investment banker, and Verdolino & Lowey, PC as restructuring advisor. Omni Agent Solutions, Inc. is the claims, noticing and solicitation agent. CAPSTONE COMPANIES: Rodney Christopher Ems Holds 5.1% Stake ----------------------------------------------------------- Rodney Christopher Ems disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of March 20, 2025, he beneficially owned 2,535,156 shares of Capstone Companies, Inc.'s common stock, all of which are held with sole voting power and no dispositive power, representing 5.1% of the 49,707,964 shares outstanding. Rodney Christopher Ems may be reached at: 18802 Larimore St. Elkhorn, NE 68022 A full-text copy of Mr. Ems's SEC report is available at: https://tinyurl.com/5b584j7h 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 17, 2025, attached in the Company's Annual Report on Form 10-K for the year ended December 31, 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 December 31, 2024, Capstone Companies had $838,117 in total assets, $377,018 in total liabilities, and $461,099 in total stockholders' equity. CAREPOINT HEALTH: Exits Chapter 11, HRH Takes Over 3 Hospitals -------------------------------------------------------------- John Heinis of Hudson County View reports that CarePoint Health has officially exited Chapter 11 bankruptcy, with Hudson Regional Hospital (HRH) taking control of all three of its hospitals, a plan that began taking shape last October. On April 15, 2025, U.S. Bankruptcy Judge Kate Stickles confirmed the transition, allowing HRH to oversee operations at Christ Hospital in Jersey City, Hoboken University Medical Center, and Bayonne Medical Center. "This is a critical milestone for Hudson County, as Hudson Regional Hospital can now fully execute its vision of a high-performing healthcare network, providing exceptional services and financial stability," said HRH Chair Yan Moshe. "Leveraging the model we've developed at Hudson Regional, we see tremendous opportunity to modernize facilities and improve practices across all locations, while using our expanded scale to offer greater value to patients. The future looks promising." The idea for Hudson Health System was first proposed in January 2024 but only formally launched in October. CarePoint filed for Chapter 11 bankruptcy shortly thereafter, securing $67 million in financing within a week. This move had been anticipated since September, when CarePoint's board started discussing financial restructuring, including filing for bankruptcy, as first reported by HCV. "We fully understand that services must be enhanced at all three facilities. Our goal is simple: to restore confidence in the community hospitals serving these neighborhoods and surrounding areas," said HRH President and CEO Dr. Nizar Kifaieh. "We are committed to rebuilding trust in the healthcare system and delivering reliable, high-quality care to the people we serve." In March 2025, the New Jersey Department of Health granted HRH a certificate of need for Bayonne Medical Center, though this was largely a formality since HRH was already recognized as the new operator of BMC in November and had received approval from the State Health Planning Board in December, according to Hudson County View. At BMC, HRH has already begun making significant improvements, including a renovated Emergency Department, the reopening and enhancement of the CATH LAB, the revival of the Graduate Medical Education Program, and the addition of new physical therapy and pharmacy facilities, the report relays. As the transition continues, there are questions about the future of the hospitals, with Hoboken already exploring a hospital redevelopment plan that has yet to be put to a vote, according to report. 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. CHIARO TECHNOLOGY: Seeks Chapter 15 Bankruptcy in Delaware ---------------------------------------------------------- Vince Sullivan of Law360 reports that Chiaro Technology Ltd., a British women’s healthtech company, has filed for Chapter 15 in Delaware bankruptcy court, requesting U.S. recognition of a U.K. insolvency proceeding as it works to manage its U.S. assets and pursue a sale to a rival firm. About Chiaro Technology Ltd. Chiaro Technology Ltd. is a British women’s healthtech company. Chiaro Technology Ltd. sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10691) on April 11, 2025. Honorable Bankruptcy Judge Brendan Linehan Shannon handles the case. CREATIVEMASS HOLDINGS: Case Summary & 10 Unsecured Creditors ------------------------------------------------------------ Two affiliates that simultaneously filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Creativemass Holdings, Inc. (Lead Case) 25-10695 Level 6, 18 Oliver Lane Melbouren, VIC 3000 Creativemass Enterprises US LLC 25-10696 Level 6, 18 Oliver Lane Melbouren, VIC 3000 Business Description: Creativemass, founded in June 2020 as a Delaware holding company, managed five subsidiaries across Australia, Japan, the UK, and the US. The group's operations were primarily driven by Creativemass Enterprises Pty Ltd., an Australian firm incorporated in 2017 and led by Michael Rouse, who also headed the parent company. Its core offering was WealthConnect, a subscription- based wealth management platform developed between 2017 and 2019, which anchored the group's broader push to deliver fintech solutions to the financial services sector. Chapter 11 Petition Date: April 14, 2025 Court: United States Bankruptcy Court District of Delaware Judge: Hon. Mary F. Walrath Debtors' Bankruptcy Counsel: Joseph C. Barsalona II, Esq. Michael Custer, Esq. Alexis R. Gambale, Esq. PASHMAN STEIN WALDER HAYDEN, P.C. 824 North Market Street, Suite 800 Wilmington, Delaware 19801 Tel: (302) 592-6496 Email: jbarsalona@pashmanstein.com mcuster@pashmanstein.com agambale@pashmanstein.com Debtors' Financial Advisor: NOVO ADVISORS, LLC Debtors' Claims/ Noticing Agent: STRETTO Lead Debtor's Estimated Assets: $1 million to $10 million Lead Debtor's Estimated Liabilities: $1 million to $10 million The petitions were signed by Claudia Z. Springer as chief restructuring officer. A full-text copy of Creativemass Holdings's petition, which includes a list of the Debtor's 10 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/WMKYTPY/Creativemass_Holdings_Inc__debke-25-10695__0001.0.pdf?mcid=tGE4TAMA A full-text copy of Creativemass Enterprises' petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/WTFNLCY/Creativemass_Enterprises_US_LLC__debke-25-10696__0001.0.pdf?mcid=tGE4TAMA CREATIVEMASS HOLDINGS: Proposes Subchapter V Plan to Resolve Case ----------------------------------------------------------------- Creativemass Holdings, Inc., and Creativemass Enterprises US LLC, which are no longer operating, have sought bankruptcy protection in the United States under Subchapter V of Chapter 11 of the Bankruptcy Code to seek confirmation of a Plan of Liquidation. The Debtors also filed their Joint Prepackaged Subchapter V Plan of Liquidation which sets forth in detail the treatment of the professional fee claims, unsecured noteholder claims, general unsecured claims and also the treatment of the holders of equity interests. Creativemass Enterprises was incorporated on June 12, 2017, as an Australian corporation. Its sole director was Michael Rouse, who also served as the sole director of Creativemass Holdings after its formation in 2020. From 2017 to 2019, Creativemass Enterprises entered the product development stage by scoping, testing and building products. Creativemass Enterprises' flagship product was WealthConnect, a wealth management application which operates on Salesforce's cloud infrastructure. In 2020, Creativemass Enterprises commenced selling WealthConnect licenses to customers on a subscription-based model generally in terms of five years or greater, with pricing based on the level of functionality required. The Creativemass Group also generated revenue from its implementation and managed services. Road to Bankruptcy Between 2021 and 2022, Creativemass conducted various capital raises, pursuant to which it raised approximately US$25 million. It was unable, however, to complete a contemplated capital raise of US$70 million with Goldman Sachs, the failure of which had a significant negative impact on cashflow and operations. Because of the negative EBITDA, Ernst & Young commenced an audit and concluded that Creativemass Enterprises' ability to survive as a going concern was in doubt. From March to July 2022, eight employees provided short-term bridge loans to Creativemass Enterprises totaling approximately $1.408 million to cover working capital requirements. In an effort to alleviate Creativemass' financial distress, in late 2022 its board proposed a recapitalization whereby a majority of the outstanding Creativemass Convertible Promissory Notes would be converted to Equity and holders of such Convertible Notes would receive shares in Creativemass proportional to the face amount of their debt. The Note to Equity Conversion was approved by a majority vote of Class A common stockholders in December 2022. The Bridge Loans proved insufficient to stem Creativemass Enterprises' cash flow problems, and in January 2023, Creativemass Enterprises began to engage in substantive discussions with AMP Group Finance Services Ltd., Equisolve Consulting, Ltd. and the Sydney Syndicate regarding emergency funding for working capital given anticipated 2023 fiscal year EBITDA of negative $1.9 million. The Consortium, however, would not provide emergency funding unless Mr. Rouse resigned and forfeited his equity in Creativemass Enterprises and all other Creativemass Group entities. Australian Administration By early 2023, after losing confidence in management, creditors forced the exit of Mr. Rouse from the Creativemass Group, and a former director of Creativemass Enterprises, Alex Ulrich, was appointed as Creativemass' sole director. Further attempts to restructure the Creativemass Group's debts were undertaken, but on March 15, 2023, Creativemass Enterprises was placed into voluntary administration under Australian insolvency law. On April 28, 2023, Michael Hogan and Christian Sprowles of the firm of HoganSprowles were appointed as joint and several liquidators of Creativemass Enterprises. The Australian administration currently remains pending. Because the main operating Subsidiary of Creativemass had been placed into Australian Liquidation, Creativemass was left with no option other than to wind down what was left of the Creativemass Group and maximize recovery for the few remaining Holders of Convertible Notes that were not converted, the Holders of General Unsecured Claims and the hundreds of Holders of Equity Interests. That winddown process, however, was imperiled not only by the Creativemass Group's lack of revenue, which in and of itself created financial distress, but also the potential exposure to liability stemming from the actions of Mr. Rouse, including, but not limited to, the Note to Equity Conversion. Various converted Noteholders had already asserted that the conversion was improper, and Mr. Ulrich had no way of knowing whether other former Holders of Convertible Notes would likewise raise claims, either informally or by initiating court proceedings. Faced with a lack of capital or cash to support any continued operation or pay any debt and potential claims exceeding $5.7 million or more, options were explored to effectuate an orderly winddown while identifying, resolving, and to the extent possible, minimizing the Debtors' liability exposure. Following the Australian Liquidators declaration of the first interim dividend in or around June 2024 -- First Australian Dividend -- providing Creativemass with over $2 million in funds that would need to be distributed to Creditors and Holders of Equity Interests, paramount in the considerations of the best path forward was the need for a process overseen by a court. Such a process would enable a judicial forum to hear and resolve any challenges from former Holders of Convertible Notes that were converted to Equity Interests and, ultimately, approve and protect a distribution of the First Australian Dividend and any other assets to which the Debtors became entitled, such as the Material Australian Dividend that will be distributed to Creativemass on or around May 26, 2025. Moreover, while the First Australian Dividend permitted a significant recovery for Creativemass stakeholders, it was insufficient to resolve the financial distress that the Debtors would face in their winddown efforts including the continued accrual of interest on Convertible Notes. Faced with this, Mr. Ulrich, concerned about the precarious financial condition of Creativemass left by its prior management, decided to explore, with counsel, the possibility of court oversight in connection with a distribution of the remaining Assets. It was determined that the best route was to formulate a plan to distribute the Assets while also attempting to abate any potential litigation that might occur as a result of the previous director's actions, of which there was and remains a material risk. The financial state of Creativemass as well as the risk of potential litigation would jeopardize the Cash Funds available to pay Unsecured Noteholder Claims or the General Unsecured Claims or any new Allowed Claims should they arise and become Allowed through the Chapter 11 Cases. ABC Proceeding After retaining counsel and considering the options for a court process that would effectuate these goals, Creativemass sought to embark on a final liquidation path that would allow its Creditors and Holders of Equity Interests, as well as the remaining creditors of Creativemass US, to recover as much as possible in respect of their Claims and Equity Interests. It was determined that the most efficient path for effectuating an orderly wind down and liquidation of Assets in a way that maximized recoveries for all Creditors and Equity Holders was to commence a liquidation process pursuant to an assignment of its Assets for the benefit of creditors under Delaware state law. On Oct. 4, 2024, Creativemass entered into that certain Trust Agreement and Assignment for the Benefit of Creditors of Creativemass Holdings, Inc. with Novo, as Assignee. Pursuant to the Trust and Assignment Agreement, Creativemass assigned all of its Assets, consisting at the First Australian Dividend, to Novo for the general benefit of Creativemass' Creditors and Holders of Equity Interests. On November 1, 2024, Novo filed its Petition for Assignment of Benefit of Creditors in the Court of Chancery for the State of Delaware, Case No. 2024-1131-PAF. Novo's ultimate goal with respect to the ABC was to vet its assets and liabilities in a process overseen by the Chancery Court and then distribute the First Australian Dividend, first to Creativemass' creditors, with any remaining funds going to Creativemass' holders of equity on a pro rata basis. However, on Nov. 19, 2024, the Delaware Chancery Court denied the ABC Petition in a one-page order. That order raised the issue, but did not ultimately decide, whether an assignment proceeding in the Delaware Chancery Court was needed given that, on paper, Creativemass' assets exceeded its liabilities. It did not, however, address, acknowledge or resolve the potential liability to which Creativemass was exposed in connection with, among other things, the Note to Equity Conversion. As a result of the Chancery Court's decision, and after assessing the potentially massive expense and uncertainty of litigating such issues with respect to the denial in state court, Creativemass, in its reasonable business judgment, pivoted from the ABC to a Plan under subchapter V of the Bankruptcy Code to allow the necessary vetting of its Assets and liabilities, including potential litigation exposure, and to maximize recoveries for Creditors and Equity Holders while effectuating an orderly distribution of the Cash Funds and the to-be received Material Australian Dividend. Creativemass US's filing will likewise permit distribution on account of claims against it in accordance with the Bankruptcy Code. Following the Commencement Date, Novo intends to file a notice of voluntary dismissal of the ABC Petition in the Delaware Chancery Court. Moreover, pursuant to Section 543 of the Bankruptcy Code, upon the Debtors' bankruptcy filing Novo will be required to turn over any and all Creativemass property assigned to it, thereby causing the reversion of the Cash Funds to Creativemass on the Petition Date. About Creativemass Holdings On April 14, 2025, Creativemass Holdings, Inc. and Creativemass Enterprises US LLC each filed a voluntary petition for relief under Chapter 11, Subchapter V of the United States Bankruptcy Code. The Debtors' cases are pending joint administration before the United States Bankruptcy Court for the District of Delaware before the Honorable Mary F. Walrath. Prior to the Petition Date, the Company commenced solicitation of votes on its proposed Chapter 11 Plan in accordance with Sections 1125(g) and 1126(b) of the Bankruptcy Code. The Debtors tapped PASHMAN STEIN WALDER HAYDEN, P.C., as bankruptcy counsel, and NOVO ADVISORS, LLC, as financial advisor. STRETTO is the claims agent. DEREK L. MARTIN: Hires Bernard M. Hansen as Bankruptcy Counsel -------------------------------------------------------------- Derek L. Martin, DMD, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of California to employ Law Office of Bernard M. Hansen as bankruptcy counsel. The firm will provide these services: 1. advise, consult with, and assist the Debtor with regard to any proposed plan of reorganization or liquidation, if necessary, any asset sale, or any other means of plan of reorganization or liquidation, if necessary, any asset sale, or any other means of satisfying creditors' claims, including to bring and prosecute a motion under section 363 of the Bankruptcy Code to sell the Debtor's assets; 2. advise the Debtor with respect to the requirements of the Bankruptcy Code, the Bankruptcy Rules, the Bankruptcy Court, and the Office of the United States Trustee, as they pertain to the Debtor; 3. evaluate, object to, or otherwise resolve claims against the Debtor's estate; 4. advise the Debtor with respect to executory contracts and unexpired leases and, where appropriate, to assist the Debtor to assume or reject such executory contracts and unexpired leases; 5. commence, prosecute, and defend suits and adversary proceedings arising out of or relating to this Case, and relating to assets of the Debtor's estate; 6. advise the Debtor with respect to rights and remedies of the Debtor's bankruptcy estate and the rights, claims and interests of its creditors; 7. represent the Debtor in hearings and all contested matters before this Court; 8. assist in and render advice with respect to the preparation of contracts, monthly operating reports, accounts, applications, and orders; and 9. advise, consult with, and otherwise represent the Debtor in connection with such other matters as may be necessary for the duration of this Case. The firm will be paid at the rate of $350 per hour. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Hansen 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: Bernard M. Hansen, Esq. Law Office of Bernard M. Hansen 3465 Camino Del Rio South, Suite 250 San Diego, CA 92108-3905 Tel: (619) 283-3371 Email: bernardmhansen@sbcglobal.net 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., at Law Offices of Bernard M. Hansen. DMD FLORIDA: Gets Final OK to Use Lender's Cash Collateral ---------------------------------------------------------- DMD Florida Development 2, LLC and its affiliates received final approval from the U.S. Bankruptcy Court for the Southern District of Florida to use cash collateral. The final order signed by Judge Scott Grossman authorized the companies to use the cash collateral of Florida Restaurant Franchise Group IX, LP to pay the expenses set forth in their respective budgets. The companies may exceed any line item by up to 10% without additional approval. As protection, the lender was granted a replacement lien on all post-petition property of the companies to the same extent and with the same priority as its pre-bankruptcy lien. The order does not determine the extent, validity, or priority of the lender's lien, nor the treatment of the lender's claim, and all rights of both the companies and the lender with respect to same are preserved. About DMD Florida Development 2 DMD Florida Development 2, LLC and its affiliates, DMD Florida Restaurant Group C LLC, and DMD Florida Restaurant Group D, LLC, filed Chapter 11 petitions (Bankr. S.D. Fla. Lead Case No. 25-10088) on January 6, 2025. Jack Flechner, manager and co-chief executive officer, signed the petitions. At the time of the filing, each Debtor reported $500,001 to $1 million in assets and $10 million to $50 million in liabilities. Judge Scott M. Grossman oversees the cases. The Debtors are represented by Aaron A. Wernick, Esq., and Hayley G. Harrison, Esq., at Wernick Law, PLLC. Florida Restaurant Franchise Group LX, LP, as lender is represented by: Nestor C. Bustamante, Esq. David M. Stahl, Esq. Cozen O'Connor Southeast Financial Center 200 South Biscayne Blvd., Suite 3000 Miami, FL 33131 Telephone: (305) 358-1991 nbustamante@cozen.com dstahl@cozen.com ECS BRANDS: Seeks Chapter 11 Bankruptcy in Colorado --------------------------------------------------- On April 11, 2025, ECS Brands Ltd. filed Chapter 11 protection in the U.S. Bankruptcy Court for the District of Colorado. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will not be available to unsecured creditors. About ECS Brands Ltd. ECS Brands Ltd. is a privately held company specializing in hemp-derived products. Founded in 2018, ECS Brands focuses on manufacturing and supplying bulk hemp extracts, white-label products, and innovative formulations such as water-soluble nano emulsions. ECS Brands Ltd. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 25-12101) on April 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Thomas B. Mcnamara handles the case. The Debtor is represented by Jenny M.F. Fujii, Esq. at KUTNER BRINEN DICKEY RILEY PC. ELETSON HOLDING: Reed Smith Gets Stay Order in Shipping Feud ------------------------------------------------------------ Emily Sawicki of Law360 Bankruptcy Authority reports that Reed Smith will not be compelled to turn over a client file to the new owners of reorganized international shipping group Eletson, following a temporary stay issued by the Second Circuit amid the BigLaw firm's fight to continue representing the company's prebankruptcy 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 SURGERY: U.S. Trustee Appoints Tamar Terzian as PCO --------------------------------------------------------- Peter Anderson, the U.S. Trustee for Region 16, appointed Tamar Terzian as patient care ombudsman for Elite Surgery Center, LLC. The appointment was made pursuant to the order from the U.S. Bankruptcy Court for the Central District of California on March 20. A patient care ombudsman is an individual appointed in healthcare bankruptcies to ensure the safety of patients. The PCO monitors the quality of patient care and represents the interest of patients of the healthcare debtor. To the best of the U.S. trustee's knowledge and based on the verified statement she has provided, Ms. Terzian has no connections with Mouroux, creditors and other parties involved in the bankruptcy case. The PCO may be reached at: Tamar Terzian, Esq. tterzian@hansonbridgett.com Hanson Bridgett, LLP 601 W. 5th Street Suite 300 Los Angeles, CA 90071 Tel: (323) 210-7747 About Elite Surgery Center Elite Surgery Center, LLC doing business as Elite Robotic Surgery and Elite Robotic Surgery Center, is an ambulatory surgery center specializing in outpatient surgical procedures that do not require overnight hospitalization. The center offers advanced, minimally invasive surgeries, often utilizing robotic technology to enhance precision and recovery times. Elite Surgery Center sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-12149) on March 17, 2025, listing $716,715 in assets and $2,833,257 in liabilities. David Groves, chief financial officer of Elite Surgery Center, signed the petition. Judge Vincent P. Zurzolo oversees the case. Alan W. Forsley, Esq. at FLP Law Group, LLP represents the Debtor as bankruptcy counsel. ELNUNU MEDICAL: U.S. Trustee Appoints Eric Huebscher as PCO ----------------------------------------------------------- William Harrington, the U.S. Trustee for Region 2, appointed Eric Huebscher of Huebscher & Co. as patient care ombudsman for Elnunu Medical P.C. A patient care ombudsman refers to an individual appointed in healthcare bankruptcies to ensure the safety of patients. The PCO monitors the quality of patient care and represents the interest of patients of the healthcare debtor. Section 333(b) of the Bankruptcy Code requires the PCO to: * Monitor the quality of patient care provided to patients of the debtor, to the extent necessary under the circumstances, including interviewing patients and physicians; * Not later than 60 days after the date of this appointment, and not less frequently than at 60-day intervals thereafter, report to the court after notice to the parties in interest, at a hearing or in writing, regarding the quality of patient care provided to patients of the debtor; and * If such ombudsman determines that the quality of patient care provided to patients of the debtor is declining significantly or is otherwise being materially compromised, file with the court a motion or written report, with notice to the parties in interest immediately upon making such determination. Mr. Huebscher disclosed in a court filing that he is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. The ombudsman may be reached at: Eric Huebscher, MBA, CPA, CFE, CPCO President Huebscher & Co. 301 East 87th Street – 20E New York, NY 10128 Phone – 646.584.3141 Email: ehuebscher@huebscherconsulting.com About Elnunu Medical P.C. Elnunu Medical P.C. sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-04732) on February 14, 2025, listing $100,001 to $500,000 in both assets and liabilities. Judge Elizabeth S Stong presides over the case. The Debtor tapped Btzalel Hirschborn, Esq., at Shiryak Bowman Anderson Gill & Kadochnikov, LLP as counsel. ENSONO INC: Moody's Alters Outlook on 'B3' Secured Debt to Positive ------------------------------------------------------------------- Moody's Ratings affirmed the B3 senior secured first lien bank credit facilities ratings of Ensono, Inc., a hybrid IT managed service provider. Moody's also assigned a B3 corporate family rating, B3-PD probability of default rating and positive outlook to Ensono Intermediate HoldCo, Inc. (Ensono), the entity at which financials are reported, and withdrew Ensono, Inc.'s B3 corporate family rating (CFR) and B3-PD probability of default rating (PDR). The rating outlook for Ensono, Inc. was changed to positive from stable. The change to a positive outlook from stable recognizes Ensono, Inc.'s strong operating performance following successful strategic investments in sales and marketing during 2022 and into early 2023 contributing to Ensono adding much larger clients compared to several years ago. New logos, expanding relationships with existing accounts, and contract renewals at 90%+ rates have contributed to strong bookings growth and low baseline churn, translating into annual double-digit percentage revenue and EBITDA growth in 2023 and 2024. However, debt balances increased during this period to fund success-based capital spending, resulting in debt to EBITDA remaining high. Moody's expects these revenue and EBITDA growth trends to continue over at least the next 12 months and for debt to EBITDA to decline towards 5.5x by year-end 2025 and further in 2026. Moody's expects Ensono to continue successfully adding new logos and expanding wallet share with existing clients which will require continued high levels of success-based capital spending of approximately 11% of revenue. Moody's believes current cash balances and availability under its revolver and receivables securitization facility are more than sufficient to fund success-based capital spending for at least the next two years. RATINGS RATIONALE Ensono's B3 CFR benefits from its stable base of contracted recurring revenue, strong revenue, EBITDA, and bookings trends, and its solid position within the market for managed mainframe and midrange computer services. Capital intensity, increasingly success-based in nature, could further moderate over time. The company largely targets Fortune 1000 enterprises with annual revenue from $1 to $15 billion and has had great success adding new logos and expanding wallet share from existing clients. The compelling cost reduction benefits to on-premise IT managers from outsourcing mainframe and other IT workloads and operations is expected to continue to support Ensono's steady growth and margin expansion. The CFR is constrained by high debt to EBITDA of 7.1x as of year-end 2024 and significant success-based capital investments from strong bookings growth contributing to negative free cash flow since 2022. The company has been reliant at times on additional debt to fund success-based capital investments which Moody's expects to continue and may slow the trajectory of debt to EBITDA declining. The customer base also remains relatively concentrated among its top 10 clients. The senior secured first lien bank credit facilities are rated B3, in line with the B3 corporate family rating, given that the first lien debt represent the preponderance of debt in the capital structure. The senior secured bank credit facilities are guaranteed on a senior secured basis by all current and future domestic restricted subsidiaries. Moody's expects Ensono to have good liquidity over the next 12 months primarily supported by $59 million cash on hand as of December 31, 2024, a fully available $100 million revolving credit facility expiring November 2027, and $62.5 million available under its $125 million accounts receivable securitization facility due November 08, 2026. The company was in compliance with the terms of its revolver, which has a springing net first lien secured debt to EBITDA covenant that cannot exceed 7.5x and is tested when the revolver is greater than 40% drawn. Success-based capital spending comprises the bulk of Ensono's capital outlays which may at times require Ensono to rely on external financing to fund success-based capital spending. The positive outlook reflects Moody's expectations over the next 12-18 months for Ensono to have at least high single-digit percentage revenue growth and financial leverage to decline towards 5.5x while maintaining at least adequate liquidity. Moody's have decided to withdraw the CFR and PDR ratings of Ensono, Inc. for Moody's own business reasons. \ FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade Ensono's ratings if debt to EBITDA were to fall below 5.5x and free cash flow turns neutral to positive on a sustainable basis while maintaining at least good liquidity. Downward rating pressure could develop if liquidity becomes strained or if debt to EBITDA stays above 6.5x for an extended period. The principal methodology used in these ratings was Communications Infrastructure published in February 2022. Headquartered in the Chicago area, Ensono is a hybrid IT managed service provider focused on mission critical workloads for enterprise customers. The company supports mainframe, infrastructure, private cloud and public cloud solutions primarily in the US and Europe, with a differentiated expertise in legacy mainframe systems. EXACTECH INC: Court Approves Disclosure Statement ------------------------------------------------- The Hon. Laurie Selber of U.S. Bankruptcy Court for the District of Delaware approved the adequacy of the disclosure statement explaining the the Third Amended Joint Chapter 11 Plan of Exactech Inc. and its debtor-affiliates. Under the plan, each of the Debtors is a proponent of the Plan within the meaning of Section 1129 of the Bankruptcy Code. The Plan does not contemplate the substantive consolidation of the Debtors' Estates. Instead, the Plan, although proposed jointly, constitutes a separate chapter 11 plan for each of the Debtors. The primary objective of the Plan is to maximize value for all stakeholders and generally to distribute all property of the Estates that is or becomes available for distribution generally in accordance with the priorities established by the Bankruptcy Code. The Debtors believe that the Plan accomplishes this objective and is in the best interest of the Estates. Generally speaking, the Plan: a) provides for the sale of substantially all of the Debtors' assets to the Winning Bidder through the Sale Transaction; b) provides the vesting of remaining assets following consummation of the Sale Transaction in the Wind-Down Trust for the purpose of monetization and distribution to Holders of Allowed Claims; c) designates a Wind-Down Trustee to wind down the Debtors' affairs, pay and reconcile Claims against the Debtors, and administer the Plan in an efficient manner; d) provides for payment in full or such other treatment as to render such Claims Unimpaired of Allowed Administrative Claims, Statutory Fees, Allowed Priority Tax Claims, Allowed Other Security Claims, and Allowed Priority Non-Tax Claims; e) does not provide for a recovery for holders of section 510(b) Claims or Prepetition Equity Interests; and f) subject to the consent of the Winning Bidder, does not provide a recovery for holders of Intercompany Claims or Intercompany Interests. The Plan includes certain debtor and consensual third-party releases. The Special Committee, with the assistance of its independent counsel, is actively assessing the existence of potential Claims or Causes of Action that the Debtors may hold against certain insiders and other affiliated Entities and whether the Debtors should retain, release, or seek to settle any such Claims and Causes of Action. In conjunction with those efforts, the Special Committee, with the assistance of its independent counsel, has been evaluating and will continue to evaluate, among other things, the proposed releases and settlements contemplated by the Plan. Accordingly, the release provisions contained in the Plan remain subject to ongoing review by the Special Committee in all respects. The Debtors, at the direction of the Special Committee, reserve the right to withdraw, or modify the releases in the Plan in advance of the Confirmation Date subject in all respects to, and without limiting any rights in, the Restructuring Support Agreement. Pursuant to the Restructuring Support Agreement, the Plan (including the release provisions) and any amendments thereto must be reasonably acceptable to the Required Consenting Lenders. The Debtors are engaged with their key stakeholders in an effort to resolve various matters. Those discussions may result in settlements of certain disputed matters, including related to the Debtor releases contained in Article VIII.B of the Plan. Any such settlements, if reached, are expected to result in the potential inclusion of amendments or modifications of the Plan to propose additional settlements pursuant to section 1123(b)(3)(A) of the Bankruptcy Code and Bankruptcy Rule 9019. The Debtors believe that resolution of these controversies in advance of the Confirmation Hearing could facilitate the favorable resolution of these Chapter 11 Cases and maximize distributions to Holders of Allowed Claims. The Debtors believe that the Plan maximizes recoveries in the Chapter 11 Cases as the Debtors do not currently have a viable alternative to the Sale Transaction meaning that absent consummating a Sale Transaction, the Debtors would need to convert these Chapter 11 Cases to a liquidation under Chapter 7 of the Bankruptcy Code, which would materially reduce recoveries to Holders of Claims, as reflected in the Liquidation Analysis. Accordingly, the Debtors urge all Holders of Claims entitled to vote to accept the Plan. A full-text copy of the Disclosure Statement is available for free at https://tinyurl.com/mr3cejdp A full-text copy of the Amended Chapter 11 Plan is available for free at https://tinyurl.com/4ke5fncj 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. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors. Brown Rudnick LLP is the Committee's counsel. EXACTECH INC: Judge Expresses Concern Over Chapter 11 Rising Fees ----------------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that on Tuesday, April 15, 2025, Exactech Inc. informed a Delaware bankruptcy judge that it has obtained sufficient financing to carry its Chapter 11 case through the confirmation hearing set for the end of May 2025, though the judge expressed concern over escalating legal costs. 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. EXACTECH INC: Plan Confirmation Hearing Set for May 28 ------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware will hold a hearing on May 28, 2025, at 10:00 a.m. (prevailing Eastern Time) before the Hon. Laurie Selber at 824 North Market Street, 6th Floor, Wilmington, Delaware 19801, to confirm the Third Amended Joint Chapter 11 plan of Exactech Inc. and its debtor-affiliates. Objections to the confirmation of the Chapter 11 plan is May 14, 2025, at 4:00 p.m. (prevailing Eastern Time). 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. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors. Brown Rudnick LLP is the Committee's counsel. FANATICS HOLDINGS: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Fanatics Holdings, Inc. (FHI)'s and its subsidiary Fanatics Collectibles Intermediate Holdco, Inc.'s (Collectibles) Long-Term Issuer Default Ratings (IDR) at 'B+'. Fitch has also affirmed Collectibles' senior secured credit facilities, including its senior secured revolving credit facility and senior secured term loan, at 'BB+' with a Rating Recovery of 'RR1'. The Rating Outlook is Stable. FHI's ratings reflects Fitch's expectation that continued strength at Collectibles combined with recovering margins at Commerce & Retail and declining losses at Betting & Gaming should lead to positive EBITDA generation in 2025. This combined with active efforts to reduce debt should support improving, but elevated, leverage in 2025 before declining below 5.0x in 2026. FHI's rating also reflects its strong competitive position, strong liquidity and recognizes potential that macro volatility and opportunistic investments slow the pace of EBITDA recovery. Key Rating Drivers Recovering EBITDA: Fitch expects FHI to generate positive EBITDA in 2025 with margins improving further in 2026, compared to negative EBITDA in 2023 and 2024. Negative EBITDA was driven by losses incurred to build out Betting & Gaming and investments at FHI and Commerce. Fitch expects Commerce & Retail's EBITDA to recover in 2025 as investments and one-time costs decline, and that losses will decline at Betting & Gaming. Collectibles generates healthy EBITDA, and Fitch expects EBITDA to continue growing at the subsidiary over the next several years as it gains the exclusive NBA and NFL rights. This should also support the return to positive EBITDA at FHI. While Fitch's base case assumes FHI's EBITDA will grow over the next several years, several factors may constrain the pace and scale of improvements. Macro risks or increased costs could negatively impact consumer spending and reduce demand for discretionary goods. This could negatively impact sales and delay EBITDA recovery. FHI could also continue to invest at elevated levels at Commerce & Retail, Betting & Gaming, or the parent level to drive future growth, leading to lower than expected EBITDA and potentially put pressure on FHI's rating. High, but Declining, Leverage: FHI's subsidiaries repaid a significant amount debt between 2023 and 2024, and Fitch expects further repayment in 2025 funded from FCF generated at subsidiaries like Collectibles. The debt repayment combined with EBITDA growth should lead to improving, but still elevated, leverage in 2025 before declining below 5.0x in 2026 and thereafter. Fitch partially de-consolidates for non-owned portions of certain subsidiaries. Strong Liquidity Supports Investments: FHI's strong liquidity (around $950 million of cash at Dec. 31, 2024 including cash at subsidiaries) should be sufficient to fund the build out of Betting & Gaming over the next few years. FHI generated negative FCF in 2024, driven by losses at Betting & Gaming and growth investments, however other subsidiaries generated positive FCF. If FHI is unable to reduce losses at Betting & Gaming and achieve positive FCF over the medium term, it could lead to a deterioration of liquidity and put pressure on the rating. Continued Revenue Growth: Revenue is expected to grow, with exclusive rights to produce NBA cards (2025) and NFL cards (2026) driving growth at Collectibles. Betting & Gaming's revenue will continue to grow as it matures and gains market share. Fitch expects Commerce & Retail to be flat to modestly down in 2025, with growth initiatives offsetting some of the impact of the potential for declining discretionary demand from consumers in 2025. Entrenched Competitive Position: FHI has an entrenched competitive position in its categories, bolstered by strong relationships and long-term, often exclusive contracts with a network of major sports leagues, athletes and global organizations. In 2025, Collectibles will secure exclusive rights to produce trading cards for the NBA, followed by the NFL in 2026. Several major sports leagues and players' unions have equity stakes in FHI and its Collectibles subsidiary, underscoring their strong relationships. Focus on North American Sports Fans: FHI's business model is primarily focused on sale of sports gear and collectibles such as trading cards and apparel to North American consumers. If one of the major leagues were to miss part or all of a season for any reason, this could have a negative impact on FHI's revenue and EBITDA. Fitch believes that over 85% of FHI's revenue is generated from North America. The focus on sports also leads to increased seasonality, with seasonal use of revolvers to fund working capital and sales declining during off-seasons and peaking in-season and around the holiday period. Parent Subsidiary Linkage: Fitch has determined that a linkage exists between FHI and Collectibles based on its assessment of various factors. Fitch's analysis includes a strong subsidiary/weak parent approach between the parent, Fanatics Holdings, Inc., and its stronger subsidiary, Fanatics Collectibles Intermediate Holdco, Inc. Fitch assesses the quality of the overall linkage as high, with open access and control, and open legal ring fencing, which results in the consolidation of the IDRs. Peer Analysis FHI's higher leverage, lower profitability and more complex capital structure contribute to it being rated lower than peers, such as Hasbro, Inc. (BBB-/Stable); Mattel, Inc. (BBB-/Stable); ACCO Brands Corporation (BB/Negative); and Central Garden & Pet Company (BB/Stable). FHI's scale, measured by EBITDA, is also smaller than its peers. Fitch considers FHI to be less geographically diversified than many of these peers, with roughly 85% of FHI's revenues generated in North America. Key Assumptions - FHI's sales grow in the MSD range in 2025, driven primarily by growth at Collectibles driven by new rights (EPL, WWE, NBA), continued growth in market share at Betting & Gaming, with Commerce & Retail mostly flat to modestly down. Trends remain similar in 2026, with Collectibles gaining the rights to produce NFL cards and continued growth at Betting & Gaming. - Consolidated EBITDA margins could be in the low-single-digit range in 2025 and 2026, compared to negative in 2024. The improvement is driven by new rights, declining investments and one-time costs, and declining losses at Betting & Gaming. - Gross EBITDA leverage (including Fitch's adjustments to deconsolidate the non-owned portion of Retail) is expected to decline but remain slightly elevated in 2025 and decline below 5.0x in 2026. - On a consolidated basis, FCF remains negative at FHI in 2025 primarily driven by losses at Betting & Gaming, but liquidity is more than sufficient to fund negative FCF. Subsidiary level FCF supports debt reduction. - Variable interest rates in the 3.5%-4.25% range over the forecast horizon. Recovery Analysis The recovery analysis assumes that Fanatics Collectibles Holdings, Inc. would be reorganized as a going concern in bankruptcy rather than liquidated. It would inherit some of the overhead costs currently undertaken by its parent Fanatics Holdings, Inc. The recovery analysis incorporates a going-concern EBITDA of $250 million, or approximately 70% of 2024 levels. It assumes that mis-execution by management could lead to overproduction, reducing demand for trading cards leading to a decline in sales. The going-concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level, upon which the valuation of the company is based, with top-line revenue of $1.25 billion and an EBITDA margin of approximately 20%. The enterprise value (EV)/EBITDA multiple selected is 6.0x, within the 4x-8x range observed for North American corporates, reflecting Fitch's assessment of Collectible's industry dynamics and company specific factors. After deducting 10% for administrative claims from the approximately $1.5 billion going-concern valuation, the resulting going-concern valuation of approximately $1.35 billion is greater than the approximately $275 million liquidation value, comprised mostly of accounts receivable and inventory. Collectibles' senior secured revolving credit facility and senior secured term loan A are ranked at the same level in this recovery analysis, resulting in outstanding recovery prospects for the secured credit facilities, which are rated at 'BB+'/'RR1'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A material deterioration liquidity profile limiting FHI's ability to fund growth at subsidiaries; - Deterioration in industry fundamentals such that Fitch believed EBITDA could be sustained below $100 million, with EBITDA leverage sustained above 5.0x on a proportionally deconsolidated basis. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Low to mid-single-digit EBITDA margins, leading to EBITDA sustained above $200 million; - Strong liquidity supported by sustained positive FCF; - EBITDA leverage sustained below 4.5x (total debt/EBITDA on a proportionally deconsolidated basis). Liquidity and Debt Structure FHI has ample liquidity, with around $950 million of cash outstanding as of Dec. 31, 2024 (including cash at subsidiaries), supported by historical equity capital raises. Fitch expects that FHI will generate negative FCF in 2025 and potentially 2026 driven by losses at Betting & Gaming, however it's cash should be sufficient to fund losses over the next several years. FHI's subsidiaries had around $1.4 billion in revolver borrowing capacity as Dec. 31, 2024, and Fitch believes that aside from Betting & Gaming, subsidiaries are able to self-finance. FHI's subsidiaries issue debt, with no upstream, downstream or cross guarantees between parent or subsidiaries. As of Dec. 31, 2024, FHI had around $570 million of debt, comprised of revolver drawings and term loan balances at its various subsidiaries. Fitch rates the debt instruments at Fanatics Collectibles Holdco, Inc. (Collectibles), comprised of a $600 million secured cash flow revolving credit facility and around $100 million in secured term loan debt, both maturing on April 11, 2028. As of Dec. 31, 2024, the revolver had no drawings outstanding. Collectibles has strong credit metrics, supported by revenue of around $1.6 billion in 2024, EBITDA margins in the low 20% range, and robust FCF. Issuer Profile Fanatics Holdings, Inc. is a manufacturer and retailer of sports goods and collectibles, headquartered in New York City. It operates through three primary subsidiaries: Commerce & Retail, Collectibles and Betting & Gaming. Summary of Financial Adjustments Fitch adjusts for non-cash, non-recurring, expenses by adding them back to historical EBITDA. 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 ----------- ------ -------- ----- Fanatics Holdings, Inc. LT IDR B+ Affirmed B+ Fanatics Collectibles Intermediate Holdco, Inc. LT IDR B+ Affirmed B+ senior secured LT BB+ Affirmed RR1 BB+ FOUNDATION BUILDING: Moody's Cuts CFR to B3, Outlook Stable ----------------------------------------------------------- Moody's Ratings downgraded Foundation Building Materials, Inc.'s (FBM) corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, the ratings on the existing backed senior secured first lien term loans to B3 from B2 and the ratings on the existing senior unsecured notes to Caa2 from Caa1. Concurrently, Moody's assigned a B3 rating to the new $350 million backed senior secured first lien term loan due 2032. The outlook remains stable. The downgrade of the CFR to B3 reflects the increase in leverage following the debt-funded acquisition of REW Materials and Moody's expectations that deleveraging through earnings growth will be more difficult in a muted demand environment. Sources to fund the acquisition and pay transaction fees and expenses include $40 million of rolled equity, $250 million of ABL drawings and the new $350 million first lien term loan. The company will also upsize the committed amount of its ABL to $1.1 billion with a maturity five years after close. Governance risk considerations are material to the rating action, reflecting an aggressive financial policy evidenced by the company's willingness to significantly increase its leverage for shareholder distributions and acquisitions. 2024 year-end leverage (inclusive of the added debt and pre-acquisition EBITDA, predominantly from Unified and REW) will increase to 7x debt/EBITDA from 3.7x as of December 31, 2023. The aggressive financial policy and weakening end market demand creates uncertainty around the pace of deleveraging. The stable outlook reflects Moody's views that leverage will trend to below 7x debt/EBITDA and that the company will continue to generate positive free cash flow. RATINGS RATIONALE FBM's B3 CFR reflects very high leverage of about 7x debt/EBITDA for the last 12 months period ending December 31, 2024, pro forma for the added debt and pre-acquisition EBITDA. The company has had success in growing through acquisitions, but this strategy adds operational and integration risks. The company faces intense competition, and its product mix is reliant on commodity-like products, making it difficult to maintain pricing power. The company plans to improve its margins through the realization of synergies and an improvement in pricing strategy. However, given the end market volatility, earnings improvement will be challenging in the near term. The continued deployment of capital for shareholder friendly transactions also remains an ongoing credit risk. The company's aggressive financial policy and the current end market volatility create uncertainty around the pace of earnings improvement and deleveraging. The rating also reflects FBM's strong market position. According to the company, the REW acquisition will make FBM the leading wallboard, ceiling and metal framing distributor in North America. FBM is expected to maintain good liquidity reflecting the company's ability to generate solid free cash flow. The company keeps minimal cash on hand but will be upsizing its asset-based revolving credit facility to $1.1 billion and extending the maturity through 2030. The ABL revolver is governed by a borrowing base calculation that fluctuates with business seasonality. Assuming the full $1.1 billion of borrowing base availability, Moody's expects availability to be around $500 million over the next 12-18 months. Excluding dividends, Moody's expects solid free cash flow generation over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if adjusted debt-to-EBITDA is sustained below 6.0x and adjusted EBITDA-to-interest expense is sustained above 3.0x. An upgrade would also require maintenance of good liquidity and more predictable and conservative financial policies regarding capital deployment. The ratings could be downgraded if adjusted debt-to-EBITDA is sustained above 7.0x or if EBITDA-to-interest expense is sustained below 2.0x. The ratings could also be downgraded if there is a deterioration of the company's profit margins or a deterioration of its liquidity profile including cash flow or revolver availability. Foundation Building Materials, Inc., headquartered in Santa Ana, California, is a national distributor of wallboard, suspended ceilings systems, metal framing, doors, insulation and other material. American Securities, through its affiliates, is the majority owner of FBM, while Clayton, Dubilier & Rice (CD&R), through its affiliates, maintains significant minority ownership. The principal methodology used in these ratings was Distribution and Supply Chain Services published in December 2024. FRANCIS TRUST: Case Summary & Three Unsecured Creditors ------------------------------------------------------- Debtor: Francis Trust LLC The Moorings of New Harbor Maine 43 Southside Road New Harbor, ME 04554 Business Description: Francis Trust LLC operates The Moorings of New Harbor, a lodging complex situated in New Harbor, Maine. This property offers a variety of accommodations, including private units in historic homes with harbor and ocean views. Amenities at The Moorings include an indoor heated pool, hot tub, tennis courts, and free Wi-Fi. Some units are pet-friendly and feature full kitchens, fireplaces, and expansive decks. Chapter 11 Petition Date: April 15, 2025 Court: United States Bankruptcy Court District of Maine Case No.: 25-10064 Judge: Hon. Peter G Cary Debtor's Counsel: Tanya Sambatakos, Esq. MOLLEUR LAW FIRM 190 Main St., 3rd Fl Saco ME 04072 Tel: (207) 409-9360 E-mail: tanya@molleurlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Mia M. Capodilupo as member A full-text copy of the petition, which includes a list of the Debtor's three unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/JDC6AAY/Francis_Trust_LLC__mebke-25-10064__0001.0.pdf?mcid=tGE4TAMA FRENCH SEAM: Wins Final OK to Use Cash Collateral ------------------------------------------------- The French Seam, Inc. received final approval from the U.S. Bankruptcy Court for the Southern District of Indiana to use the cash collateral of the U.S. Small Business Administration. The final order authorized the company to use cash collateral from the petition date through April 29 to pay its expenses. The U.S. Small Business Administration has a first and only lien on the cash collateral. As protection, SBA was granted first and prior replacement liens on any additional cash collateral generated post-petition and any post-petition assets of the company. In addition, SBA will receive a payment pursuant to the court-approved budget. The use of cash will terminate upon expiration of the order, conversion or dismissal of the case, removal of the debtor-in-possession, granting of relief from stay to the SBA, or entry of an order restricting or prohibiting further use of cash collateral. About The French Seam Inc. The French Seam, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Ind. Case No. 25-00814) on February 24, 2025, listing up to $50,000 in assets and up to $1 million in liabilities. Judy Wolf Weiker of Manewitz Weiker Associates, LLC serves as Subchapter V trustee. Judge Andrea K. Mccord oversees the case. The Debtor is Represented By: Jeffrey M. Hester, Esq. Hester Baker Krebs LLC Tel: 317-833-3030 Email: jhester@hbkfirm.com FUEL FITNESS: Court Extends Cash Collateral Access Until May 21 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, extended Fuel Fitness, LLC's authority to use cash collateral to fund its operations. The interim order authorized the company to use cash collateral for the period from April 22 to May 21 pursuant to its monthly budget, with a 10% variance. The budget shows total projected expenses of $76,700 for the interim period. Live Oak Banking Company and all other lien creditors were granted a continuing post-petition security interest in and lien on all personal property of the company to the same extent and with the same priority as their pre-bankruptcy liens. As additional protection, Live Oak Banking Company will receive payment of $5,000 on or before May 15. The next hearing is scheduled for May 21. About Fuel Fitness Fuel Fitness, LLC, a company in Raleigh, N.C., filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03698) on Oct. 22, 2024, with up to $100,000 in assets and up to $10 million in liabilities. Christopher Shawn Stewart, member-manager, signed the petition. Judge Joseph N. Callaway oversees the case. The Debtor is represented by Philip Sasser, Esq., at Sasser Law Firm. Live Oak Banking Company, as secured creditor, is represented by: William Walt Pettit, Esq. Hutchens Law Firm 6230 Fairview Road, Suite 315 Charlotte, NC 28210 Phone: (704) 362-9255 walt.pettit@hutchenslawfirm.com FUEL HOMESTEAD: Court Extends Cash Collateral Access to May 21 -------------------------------------------------------------- Fuel Homestead, LLC received seventh interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina, to use cash collateral. The seventh interim order authorized the company to use cash collateral for operational expenses from April 22 to May 21, with a 10% variance. The budget shows total projected expenses of $96,392.67 for the period. Live Oak Banking Company and all other secured creditors were granted a continuing post-petition security interest in and lien on all personal property of the company to the same extent and with the same priority as their pre-bankruptcy liens. As additional protection, Live Oak Banking Company will receive payment in the amount of $5,000 on or before May 15. The next hearing is set for May 21. About Fuel Homestead Fuel Homestead, LLC, a company in Raleigh, N.C., sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 24-03699) on October 22, 2024, with up to $100,000 in assets and up to $10 million in liabilities. Christopher Shawn Stewart, member-manager, signed the petition. Judge Joseph N. Callaway oversees the case. The Debtor is represented by Philip Sasser, Esq., at Sasser Law Firm. Live Oak Banking Company can be reached through its counsel: William Walt Pettit, Esq. Hutchens Law Firm 6230 Fairview Road, Suite 315 Charlotte, NC 28210 (704) 362-9255 walt.pettit@hutchenslawfirm.com FUEL REYNOLDA: Court Extends Cash Collateral Access to May 21 ------------------------------------------------------------- Fuel Reynolda, LLC received seventh interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, to use cash collateral to fund its operations. The seventh interim order authorized the company to use cash collateral for the period from April 22 to May 21, pursuant to its monthly budget, with a 10% variance. The budget shows total projected expenses of $93,680 for the interim period. Live Oak Banking Company and all other lien creditors were granted a continuing post-petition security interest in and lien on all personal property of the company to the same extent and with the same priority as their pre-bankruptcy liens. As additional protection, Live Oak Banking Company will receive payment of $5,000 this month. The next hearing is set for May 21. Live Oak Banking Company can be reached through its counsel: William Walt Pettit, Esq. Hutchens Law Firm 6230 Fairview Road, Suite 315 Charlotte, NC 28210 (704) 362-9255 walt.pettit@hutchenslawfirm.com About Fuel Reynolda Fuel Reynolda, LLC -- https://fuelfitnessclubs.com/about/ -- doing business as Fuel Fitness, is a fitness center that offers the best free weights, strength training/cardio equipment, group fitness classes, personal training, childcare, recovery studio and smoothie bar. Fuel Reynolda sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03700) on October 22, 2024, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Christopher Shawn Stewart, member-manager, signed the petition. Judge Joseph N. Callaway oversees the case. The Debtor is represented by: Philip Sasser Sasser Law Firm Tel: 919-319-7400 Email: philip@sasserbankruptcy.com FULCRUM BIOENERGY: Gets Court Okay for Ch. 11 Plan After Asset Sale ------------------------------------------------------------------- Vince Sullivan of Law360 Bankruptcy Authority reports that on Monday, April 14, 2025, waste-to-fuel recycler Fulcrum Bioenergy received court approval for its Chapter 11 liquidation plan, following a sale process that debtor's counsel described as unexpectedly successful. About Fulcrum Bioenergy Fulcrum Bioenergy Inc. operates as a clean energy company described as a pioneer in sustainable aviation fuel (SAF) production. Fulcrum Bioenergy Inc. and its affiliates sought relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12008) on Sept. 9, 2024. In the petition filed by Mark J. Smith, as chief restructuring officer, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100 million and $500 million. The Honorable Bankruptcy Judge Thomas M. Horan handles the case. The Debtors tapped MORRIS, NICHOLS, ARSHT & TUNNELL LLP as counsel; and DEVELOPMENT SPECIALISTS, INC., as investment banker. KURTZMAN CARSON CONSULTANTS, LLC, d/b/a VERITA GLOBAL, is the claims agent. GEO GROUP: Fitch Assigns 'B+' LongTerm IDR, Outlook Stable ---------------------------------------------------------- Fitch Ratings has assigned to parent company, The GEO Group, Inc. (GEO) and subsidiary GEO Corrections Holdings, Inc. a 'B+' Long-Term Issuer Default Ratings (IDR). Fitch has also assigned a 'BB+' with a Recovery rating of 'RR1' to the company's senior secured revolver, term loan, and notes, and a 'BB-/RR3' rating to the company's senior unsecured notes. The senior secured revolver and term loan are co-issued by both The GEO Group, Inc. and GEO Corrections Holdings, Inc. whereas the senior secured and senior unsecured notes are issued by The GEO Group, Inc. The Rating Outlook is Stable. Fitch believes GEO's ownership and operation of private prisons and related segments negatively impacts the breadth and depth of capital sources available to it. Investor sentiment appears to be improving as evidenced by the company's ability to refinance its entire debt structure in 2024. Although Fitch believes GEO and its peers will continue to be scrutinized by politicians, their constituents and capital sources with ESG considerations, posing risks to both the durability of operating cash flows and increasing refinancing risk. Fitch also believes that these factors are mitigated somewhat by the company's conservative financial policy with low leverage, consistent cash flow generation directed towards debt repayment, operational tailwinds from the current administration's policies, and sentiment changes with respect to ESG investing. Key Rating Drivers Tailwinds from Policy Shift: Over the past few years GEO has been negatively impacted by a trend of policy, public, and lender sentiment away from private owners and operators of incarceration facilities. This includes an Executive Order signed by then President Biden in 2021 ordering the Department of Justice (DOJ) not to renew contracts with privately operated detention facilities. President Trump has reversed this course and made immigration a major policy focus. President Trump has signed a number of Executive Orders related to immigration, including the promotion of new enforcement policies and expedited removal against individuals who are unlawfully present in the U.S. Private prison operators are likely to benefit from the transition in the intermediate term. There is risk with respect to actual contract terms considering negotiations the government has undertaken with other contractors and a focus on government efficiency. GEO in particular received 41% of its revenues from ICE in 2024, providing approximately 42% of the secure beds for ICE as of 4Q24. It is also one of the largest providers of secure transportation services for ICE. There is already evidence of more aggressive immigration enforcement resulting in additional bed utilization with the company's recent contracts with ICE, though the ultimate level of utilization is to be seen. Conservative Financial Policy: GEO has maintained a conservative financial policy focused on reducing debt and leverage over the past few years, including through debt repayment from retained cash flow. Deleveraging along with what appears to be a sentiment shift away from ESG investing has allowed the company to refinance its entire debt structure in 2024. The company continues to be focused on repaying debt and reducing leverage towards and below 3x. An excess cash flow sweep provision under the company's credit agreement supports deleveraging. Headwinds Managed Heretofore: Notwithstanding recent policy tailwinds, contracts with states and federal agencies that operate few to none of their own facilities (e.g. USMS, ICE) will continue to support utilization of GEO's facilities due to limited alternatives. Even under the prior Biden administration, state and ICE contracts had a nearly 100% retention rate. Appropriations bills maintained if not increased beds for ICE. Prior to Biden's executive order, the company's historical facility management contract renewal rate was approximately 90%. Other Avenues for Growth: Strong growth in alternative-to-detention participants has taken place amidst record-level border patrol apprehension. GEO's electronic monitoring and supervision services segment has directly benefited from this, though this segment has seen a reduction in the number of participants after a very strong 2022 primarily in the federal government's Intensive Supervision Appearance Program, resulting in revenue reductions in 2023 and 2024 in this segment. Resident counts are expected to return to growth going forward. 2024 segment revenues remain above 2021 levels. This segment is a higher margin business in comparison to traditional secure and re-entry services. Refinancing Success Alleviates Liquidity Concerns: GEO successfully refinanced nearly its entire capital stack in 2024, which alleviated near-term liquidity concerns. This follows similar capital market access by peer CoreCivic Inc. The increased ability of these companies to access capital markets is a positive, though Fitch expects the level of access may still be dependent on market conditions and remains affected by negative sentiment towards the asset type. Changes in policy direction as a result of the second Trump administration, as well as a backlash in sentiment regarding ESG investing, may result in improved market conditions for GEO over time. Prison Population Declines: An additional headwind to the industry is secular declines in inmate population. Correctional trends have increasingly favored rehabilitation and monitoring over imprisonment of non-violent offenders and minor offenses. Prison populations are estimated to be almost 30% below peak levels (2013). The company has been pivoting towards other revenue streams as a result. These include post-incarceration re-entry services and electronic monitoring, which has made up a larger component of revenue over time. Though these headwinds are not likely to reverse, Fitch expects they will be outweighed by increases in ICE demand and utilization at least in the near term. Negative Industry Sentiment From Social Considerations: Despite changes in policy focused on immigration detention, private owners and operators of incarceration facilities have and likely will continue to face meaningful scrutiny from politicians, their constituents and advocacy groups, particularly with respect to the detention of U.S. citizens. Due to a shift towards ESG investing, capital markets access is also worse for GEO than it would be absent social concerns which negatively impacts the rating. That said, these trends seem to have abated somewhat, as a recent reversal away from ESG investing has seemingly resulted in improved capital access, as demonstrated by GEO's ability to refinance. Peer Analysis GEO does not have many direct peers, particularly within Fitch's rated universe. Compared to other real estate companies, GEO focuses on correctional properties which have limited alternative uses and limited secured debt financeability. GEO's access to capital and cash flows are also negatively impacted by ESG concerns and reliance on government contracts. Though stable government-related revenue can be a positive, for example in the case of COPT Defense Properties (CDP; BBB-/Stable), social scrutiny with respect to private corrections has meant that contract revenue has been more volatile and dependent on the policies of specific administrations. Fitch also considers GEO's credit profile relative to REITs that own non-traditional forms of commercial real estate that have limited or less diversified sources of mortgage capital, such as EPR Properties (EPR; BBB-/Stable). Compared to GEO, these REITs tend have more durable operating cashflows, better access to debt and equity capital and not being subjected to idiosyncratic regulatory headwinds or ESG concerns albeit operating with higher leverage. The depth of transaction markets still tends to be stronger than that of private corrections assets. Key Assumptions - Revenue growth from U.S. Secure Services grows meaningfully in 2025 and 2026 primarily as a result of center reactivations and new contracts; no additional reactivations or contracts are assumed beyond what has already been completed, but there is meaningful upside potential considering recent contracts; - ISAP contract is renewed, with some growth in participant counts, but revenues from electronic monitoring remain below 2022 levels; - Modest revenue growth is assumed in re-entry services, and modest declines are assumed in international services; - EBITDA margins expand slightly from 2024 levels, but generally remain around the 20% range; - The company spends roughly $150-200m on interest expense annually, but declining over time as debt is repaid and floating rates decline; - Capex is elevated in 2025 due to business ramp-up and reactivations, but otherwise generally contemplates around $95 million annually of maintenance as well as other project expenditures; - No acquisitions or divestitures are contemplated in the forecast, but Fitch expects any acquisitions would be done at leverage neutral levels and divestiture proceeds would at least partially be used to repay debt; - The company generates roughly $250-300m of CFO annually, and excess FCF after capex is swept to repay debt in line with the terms of the excess cash flow sweep under the credit agreement, reducing leverage over time. Recovery Analysis For issuers with IDRs of 'B+' and below such as GEO, Fitch assigns debt-level ratings through a bespoke analysis that estimates recoveries in the event of a default, bankruptcy or similar restructuring. Fitch estimates an enterprise value (EV) on a going-concern basis of $1.7 billion for GEO, after a deduction of 10% for administrative claims. The EV assumption is based on post-reorganization EBITDA after dividends to associates and minorities of $415 million and a 4.5x multiple. Fitch believes the mostly likely scenario for a default or restructuring would be an inability to refinance or repay maturities which could result primarily from a renewed focus on ESG considerations rather than EBITDA deterioration, though with an expectation of some operational weakness relative to its base case, potentially from policies also reversing course due to social pressure. Nonetheless, Fitch believes the EBITDA by which the firm would be valued at in said restructuring would be lower than current levels due to the long-term cash flow uncertainty. The 4.5x EBITDA multiple used for GEO compares to the 4x-8x range described in Fitch's Corporates Recovery Rating and Instrument Ratings Criteria and considers the risks to operating cashflows, the large exposure to the federal government and the limited financeability and alternative uses for its real estate assets. Assuming the revolving credit facility is fully-drawn, the first-lien secured claims will total $1.31 billion and unsecured claims will total $625 million. These assumptions result a recovery rate for secured debt within the 'RR1' range, generating a three-notch uplift to the debt rating from the IDR at 'BB+', and for unsecured debt within the 'RR3' range, generating a one notch uplift to the debt rating from the IDR at 'BB-'. The promissory notes of $39M are secured by loan agreements and mortgage and security agreements on the company's headquarters. Fitch assumes the value of the collateral on the promissory notes to at the least match the owed amounts under the promissory notes. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Sharp decline in the number of ISAP participants, which results in material revenue and EBITDA loss from electronic monitoring and supervision services segment; - Worsening regulatory and legislative environment for the private prison sector, thereby accelerating challenges in maintaining occupancies, revenues and capital access; - Reduced capital access, including the expectation that refinancing will be difficult even under benign credit market conditions; - Fitch's expectation of gross debt to recurring operating EBITDA sustaining above 3.0x; - Fitch's expectation of EBITDA Interest Coverage sustaining below 2.5x; Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increased customer diversification, particularly with less reliance on the federal government - Growth and diversification of non-incarceration business; - Stabilization of the private corrections regulatory and legislative environment; - Improved capital access, including the expectation that refinancing can occur even under weaker credit market conditions; - Fitch's expectation, along with company policy, of gross debt to recurring operating EBITDA sustaining below 2.0x. Liquidity and Debt Structure The company's recent debt activity - the most recent refinancing, as well as an earlier exchange and subsequent debt paydown, has pushed out the majority of GEO's debt over a longer period of time beyond 2026. This mitigates near-term refinancing and liquidity risk as well as demonstrating improved access to capital. Though the company still has a springing maturity on its revolver and term loan, no notes mature earlier than the revolver and term loans. This means that the earliest springing date is not materially different than the maturity date, and pushing out refinancing risk to 2029. As evidenced by the company's ability to refinance nearly its entire capital stack, the likelihood that the company will be able to address future maturities has increased, though prospects will likely be dependent on future market conditions. Fitch forecasts that GEO will generate approximately $200 million per year of FCF and repay debt in line with the requirements of the excess cash flow sweep. Correctional real estate holdings provide negligible credit support. Prisons have limited to no alternative uses, and the properties are often in rural areas. There is not a deep property transaction market for this asset class. Issuer Profile GEO specializes in the ownership, leasing and management of secure facilities, processing centers and re-entry facilities and the provision of community-based services in the United States, Australia and South Africa. Date of Relevant Committee 04 April 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 GEO Group, Inc. has an ESG Relevance Score of '5' for Exposure to Social Impacts and for Human Rights, Community Relations, Access & Affordability due to societal opposition to private prisons which adversely affects the company's ability to obtain new contracts and access capital markets, which has a negative impact on the credit profile, and is highly relevant to the rating, resulting in an implicitly lower rating than if these issues were not present. The GEO Group, Inc. has an ESG Relevance Score of '4' for Employee Wellbeing due to an environment that is riskier with respect to employee health and safety, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery ----------- ------ -------- GEO Corrections Holdings, Inc. LT IDR B+ New Rating senior secured LT BB+ New Rating RR1 The GEO Group, Inc. LT IDR B+ New Rating senior unsecured LT BB- New Rating RR3 senior secured LT BB+ New Rating RR1 GLOBAL CLEAN ENERGY: Case Summary & 30 Largest Unsecured Creditors ------------------------------------------------------------------ Lead Debtor: Global Clean Energy Holdings, Inc. 6451 Rosedale Highway Bakersfield, CA 93308 Business Description: Global Clean Energy Holdings, Inc. is a renewable energy company that produces ultra-low carbon fuels from proprietary strains of Camelina sativa, a nonfood crop. The Company manages the full value chain -- from cultivation to fuel production -- at facilities including its plant in Bakersfield, California. It operates internationally and collaborates with growers to support large-scale Camelina cultivation. Chapter 11 Petition Date: April 16, 2025 Court: United States Bankruptcy Court Southern District of Texas Fifteen affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Global Clean Energy Holdings, Inc. (Lead Case) 25-90113 Global Clean Energy Texas, LLC 25-90112 Agribody Technologies, Inc. 25-90114 Bakersfield Renewable Fuels, LLC 25-90115 BKRF HCB, LLC 25-90116 BKRF HCP, LLC 25-90117 BKRF OCB, LLC 25-90118 BKRF OCP, LLC 25-90119 GCE Holdings Acquisitions, LLC 25-90120 GCE International Development, LLC 25-90121 GCE Operating Company, LLC 25-90122 GCEH CS Acquisition, LLC 25-90123 GCEH Ventures, LLC 25-90124 Rosedale FinanceCo LLC 25-90125 Sustainable Oils, Inc. 25-90126 Judge: Hon. Alfredo R Perez Debtors' General Bankruptcy Counsel: Joshua A. Sussberg, P.C. Brian Schartz, P.C. Ross J. Fiedler, Esq. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 601 Lexington Avenue New York, New York 10022 Tel: (212) 446-4800 Fax: (212) 446-4900 Email: jsussberg@kirkland.com bschartz@kirkland.com ross.fiedler@kirkland.com - and - Peter A. Candel, Esq. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 333 West Wolf Point Plaza Chicago, Illinois 60654 Tel: (312) 862-2000 Fax: (312) 862-2200 Email: peter.candel@kirkland.com Debtors' Local Bankruptcy Counsel: Jason L. Boland, Esq. Robert B. Bruner, Esq. Julie Harrison, Esq. Maria Mokrzycka, Esq. NORTON ROSE FULBRIGHT US LLP 1550 Lamar Street, Suite 2000 Houston Texas 77010-3095 Tel: (713) 651-5151 Fax: (713) 651-5246 Email: jason.boland@nortonrosefulbright.com bob.bruner@nortonrosefulbright.com julie.harrison@nortonrosefulbright.com maria.mokrzycka@nortonrosefulbright.com Debtors' Investment Banker: LAZARD FRERES & CO. LLC Debtors' Financial Advisor: ALVAREZ & MARSAL NORTH AMERICA, LLC Debtors' Noticing & Claims Agent: EPIQ CORPORATE RESTRUCTURING, LLC Debtors' Appraisal Advisor: HILCO VALUATION SERVICES, LLC Total Assets as of Sept. 30, 2024: $1,598,001,000 Total Debts as of Sept. 30, 2024: $1,584,749,000 The petitions were signed by Noah Verleun as chief executive officer. A full-text copy of the Lead Debtor's petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/MBOQRCA/Global_Clean_Energy_Holdings_Inc__txsbke-25-90113__0001.0.pdf?mcid=tGE4TAMA Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Castleton Commodities Note Payable $33,942,247 Merchant Trading L.P. 2200 Atlantic Street Suite 800 Stamford, Ct 06902 United States Attn: William C. Reed II Title: Chief Executive Officer Phone: (203) 564-8100 Email: william.reed@cci.com 2. Bragg Companies Trade Payable $4,093,273 6242 Paramount Blvd. Long Beach, Ca 90805 United States Attn: M. Scott Bragg Title: Chief Executive Officer, President Phone: (562) 984-2400 Email: braggs@braggcrane.com 3. Brand Scaffold Services, Inc. Trade Payable $2,356,079 6001 Obispo Av Long Beach, Ca 90805 United States Attn: Gabriel Mccabe Title: Chief Executive Officer, President Phone: (678) 285-1400 Email: gmccabe@brandsafway.com 4. Geosystems International, Inc. Trade Payable $1,925,508 2385 NW Executive Center Dr. Suite 100 Boca Raton, Fl 33431 United States Attn: Mario Rossi Title: Principal Phone: (561) 706-2186 Email: mrossi@geosysint.com 5. Ancon Marine Dba Ancon, Trade Payable $793,846 Ancon Services 10571 Los Alamitos Los Alamitos, CA 90720-2113 United States Attn: Blake Hardin Title: Chief Executive Officer Phone: (844) 566-9090 Email: blakeh@anconservices.com 6. Entara LLC Trade Payable $716,792 22 Church Street Po Box 275 Liberty Corner, NJ 07938 United States Attn: Derek Becht Title: Chief Operating Officer Phone: (908) 394-1248 Email: djb@entarapartners.com 7. Intelinair Inc. Trade Payable $670,859 9510 N. Meridian St., Suite 200 Indianapolis, IN 46260 United States Ttn: Tim Hassinger Title: Chief Executive Officer, President, And Board Chairman Phone: (833) 692-4674 Email: tim@intelinair.com 8. Becht Industrial Group LLC Trade Payable $656,179 2150 N Indianwood Ave Broken Arrow, Ok 74012 United States Attn: Charles Becht Title: Chief Executive Officer Phone: (713) 903-0044 Email: cbecht@bechtindustrial.com 9. Earthoptics Inc Trade Payable $641,500 2461 S Clark St, Ste 840 Arlington, Va 22202 United States Attn: Lars Dyrud Title: Chief Executive Officer, Board Member Phone: (703) 261-9436 Email: lars.dyrud@earthoptics.com 10. West Coast Environmental Trade Payable $638,863 Solutions Inc 2694 Lime Ave Signal Hill, CA 90755 United States Attn: Bernie Herron Title: Manager Phone: (562) 448-9510 Email: bernieh@westcoastes.com 11. Schneider Electric Trade Payable $606,103 Systems USA, Inc. 70 Mechanic Street Foxboro, MA 02035-2040 United States Attn: Oliver Blum Title: Chief Executive Officer And Acting EVP Energy Management Phone: +33 1 4129 7000 Email: olivier.blum@schneider-electric.com 12. JT Thorpe & Son, Inc. Trade Payable $517,921 1060 Hensley St Richmond, CA 94801 United States Attn: Rich Giaramita Title: Chief Executive Officer, President Phone: (855) 773-5141 Email: richg@jtthorpe.com 13. Topsoe Inc. Trade Payable $484,026 Haldor Topsoes Alle 1 DK-2800 Kgs. Lyngby, Denmark Attn: Roeland Baan Title: President And Chief Executive Officer Phone: +45 4527 2000 Email: baan@topsoe.com 14. Emerson LLLP Trade Payable $455,614 8027 Forsyth Boulevard St. Louis, MO 63105 United States Ttn: Lal Karsanbhai Title: President And Chief Executive Officer Phone: (888) 889-9170 Email: lal.Karsanbhai@emerson.com 15. Curtis Electrical Trade Payable $424,669 Construction Inc 3109 Antonino Av Bakersfield, Ca 93308 United States Attn: Richard Curtis Title: President Phone: (661) 325-0323 Email: richard@ceciinc.com 16. PG & E Trade Payable $410,421 300 Lakeside Drive Suite 210 Oakland, CA 94612 United States Attn: Sumeet Singh Title: Chief Operating Officer Phone: (415) 973-1000 Email: sumeet.singh@pge.com 17. Evoqua Water Techologies LLC Trade Payable $394,151 210 Sixth Avenue Suite 3300 Pittsburgh, PA 15222 United States Attn: Anthony J. Webster Title: Executive Vice President And Chief Human Resources Officer Phone: (724) 772-0044 Email: anthony.webster@evoqua.com 18. AGI Suretrack LLC Trade Payable $351,025 8040 Bond Street Lenexa, Ks 66214 United States Attn: Paul Householder Title: Director Phone: (855) 293-5607 Email: paul.householder@aggrowth.com 19. Linde, Inc Trade Payable $338,731 10 Riverview Drive Danbury, Ct 06810 United States Attn: Sanjiv Lamba Title: Chief Executive Officer Phone: (844) 445-4633 Email: sanjiv.lamba@linde.com 20. Siemens Energy, Inc. Trade Payable $307,638 440 North Alafaya Trail Orlando, Fl 32826 United States Attn: Christian Bruch Title: President And Chief Executive Officer Phone: +49 89 3803 5491 Email: bruch.christian@siemens.com 21. Honeywell International Inc Trade Payable $287,863 855 S Mint St Charlotte, Nc 28202 United States Attn: Vimal Kumar Title: Chairman And Chief Executive Officer Phone: (877) 841-2840 Email: vimal.kapur@honeywell.com 22. Trinity Safety Company LLC Trade Payable $287,546 7501 Meany Ave. Bakersfield, Ca 93308 United States Attn: Chris Branson Title: President Phone: (661) 587-2389 Email: cbranson@trinitysafetyco.com 23. Streamline Innovations Inc Trade Payable $283,453 777 E. Sonterra Blvd Suite 200 San Antonio, Tx 78258 United States Attn: David Sisk Title: Co-Founder, Chief Executive Officer And Director Phone: (888) 787-6569 Email: dave.sisk@streamlineinnovations.com 24. Zalco Laboratories, Inc. Trade Payable $276,018 4309 Armour Ave Bakersfield, Ca 93308 United States Attn: Robert Cortez Title: Director Of Operations Phone: (661) 395-0539 Email: cortezr@zalcolabs.com 25. Savage Services Corporation Trade Payable $264,748 901 W Legacy Center Way Midvale, UT 84047 United States Attn: Jeff Roberts Title: President And Chief Executive Officer Phone: (801) 944-6600 Email: jeff.roberts@usu.edu 26. Alliance Technical Group, LLC Trade Payable $224,046 255 Grant St Se, Ste 600 Decatur, Al 35601 United States Attn: Chris Lemay Title: Chief Executive Officer Phone: (256) 351-0121 Email: chris.lemay@stacktest.com 27. United Rentals North America Trade Payable $218,130 100 First Stamford Pl Ste 700 Stamford, Ct 06902 United States Attn: Matthew Flannery Title: President And Chief Executive Officer Phone: (203) 622-3131 Email: matthew.flannery@unitedrentals.com 28. CTCI Americas Inc Disputed Claim Undetermined 11490 Westheimer Rd Suite 200 Houston, TX 77077 United States Attn: Patrick Jameson Title: Chief Executive Officer Phone: (281) 870-9998 Email: patrick.jameson@ctci.com 29. Molecule Software, Inc Trade Payable Undetermined 1333 West Loop South Suite 820 Houston, TX 77072 United States Attn: Sameer Soleja Title: Founder And Chief Executive Officer Phone: (832) 464-4037 Email: sameer@molecule.io 30. Targeted Growth, Inc. Note Payable Undetermined 1600 Fairview Avenue East Suite 300 Seattle, WA 98102 United States Attn: Robert Woods Title: Chief Executive Officer Phone: (206) 336-5570 Email: rwoods@targetedgrowth.com GLOBAL CLEAN ENERGY: Enters Chapter 11 With Over $2-Bil. in Debt ---------------------------------------------------------------- Global Clean Energy Holdings, Inc. (OTCMKTS: GCEH), sought Chapter 11 protection with over $2 billion in debt and a restructuring plan that would allow the renewable fuels firm to emerge as a viable going concern. Global Clean Energy said in an April 16, 2025 statement that it has entered into a Restructuring Support Agreement with agreement and support from Vitol Americas Corp., as RCF lender, an ad hoc group of term loan lenders which holds approximately 96% of the term loans, and CTCI Americas, Inc. Noah Verleun, President and CEO of GCE, stated, "As we enter this next phase of our restructuring process, we are appreciative of the continued support from our existing stakeholders. Their confidence in our upstream and downstream businesses, as demonstrated by this ongoing collaboration, reinforces the opportunity GCE has in the renewable fuels market, with our 'farm-to-fuel' business model. I want to thank our employees for continuing to be fully engaged as we go through this process and prioritizing safety above all else. We feel confident this decision provides us the best pathway toward future success." The Company has filed customary first day motions and plans to operate its businesses in the ordinary course, including requesting approval to continue paying our employees and funding its benefit programs in the normal course, as it pursues the holistic restructuring transactions set forth in the RSA. To fund this process and continue operating in the ordinary course, the Company's term loan lenders and CTCI have combined to provide an additional $100 million in new money debtor‑in‑possession financing and services, subject to certain terms and the satisfaction of certain conditions precedent. The Company has filed a Chapter 11 plan and anticipates confirming their Chapter 11 plan by August 2025. Renewable Energy Business Global Clean is a vertically integrated renewable energy company that aims to provide sustainable, environmentally friendly renewable fuel that can be used as a 100% replacement for conventional petroleum-based fuels and reduce global greenhouse gas emissions by up to 85%. The Company owns the world's largest portfolio of proprietary varieties of Camelina sativa, a versatile ultra-low carbon oilseed used as feedstock for the production of renewable diesel ("RD"). To support its worldwide operations, Global Clean directly employs over 150 people, and manages contracts with hundreds of growers around the world who plant more than 124,000 acres of Camelina. Global Clean's vertically integrated business model is comprised of three principal business segments: * First, the Upstream Business. Debtor Sustainable Oils, Inc. ("SusOils"), a direct subsidiary of Debtor Global Clean Energy Holdings, Inc. ("GCEH"), pioneers the Company's Camelina breeding and cultivation efforts in North America, while Camelina Company España S.L.U. ("CCE") and Global Clean Renewable (Argentina) S.R.L., each a non-Debtor, lead these efforts in Europe and South America, respectively. The upstream business revolves around the cultivation of feedstock through the development of Camelina varieties and partnerships with farmers across the globe who grow the Camelina crops (the "Upstream Business"). * Next, the Midstream Business. The Upstream Business's global cultivation efforts are complemented by strategic partnerships with blue-chip logistics and transportation providers, like Louis Dreyfus Company ("LDC"), who assist in the transportation, storage, and pre-refinement processing of post-extraction feedstock (the "Midstream Business"). * And, lastly, the Downstream Business. The centerpiece of the Company's biofuel production initiatives is its state-of-the-art renewable fuels facility located in Bakersfield, California. Through its Debtor-subsidiary Bakersfield Renewable Fuels, LLC ("BKRF"), Global Clean owns and operates the Bakersfield Facility, which utilizes feedstock, such as Camelina, to produce RD and various other renewable fuel co-products (the "Downstream Business"). The Downstream Business critically depends on its "supply and offtake" partnership with Vitol Americas Corp., a global trading firm that supplies the Company with feedstock (including soybean oil and canola oil) and purchases all RD volumes to sell to the end market. Global Clean's prepetition capital structure includes $2,133.8 million in total potential claims (excluding intercompany claims) as of the Petition Date: * $39.1 million outstanding under a Revolving Credit Facility with lenders led by Americas Corp., as administrative agent and collateral agent. * $1,096.3 million under a Senior Secured Term Loan from lenders led by led by Orion Infrastructure Capital, as administrative agent and collateral agent. * $949.3 million secured payment obligations to CTCI Americas, Inc., the general contractor for the engineering, procurement, and construction of the Bakersfield Facility. * $9.2 million due to Entara LLC for project management and other related services; * $33.9 million under notes issued to Castleton Commodities International LLC; and * $6.0 million under other loans and notes payable facilities for miscellaneous financings. About Global Clean Energy Global Clean Energy Holdings, Inc. (OTCQB:GCEH) is a vertically integrated renewable fuels company specializing in the development and cultivation of camelina, a nonfood, regenerative, intermediate oilseed crop, which is used for the production of advanced biofuels and biomaterials. With a vision that begins in the laboratory, moves through the farm gate, and finishes with renewable fuels, GCE's farm-to-fuels value chain integration provides unrivaled access to reliable, ultra-low carbon feedstocks and is unparalleled in the sustainable fuels industry. On the Web: http://www.GCEholdings.com/ Global Clean Energy Holdings, Inc., and its affiliates sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 25-90113) on April 16, 2025, to seek confirmation of a prepackaged plan negotiated with lenders and the contractor for its Bakersfield, California facility. The Company reported $1.598 billion in total assets against $1.585 billion in total debt as of Sept. 30, 2024. Kirkland & Ellis is serving as restructuring counsel, Lazard is serving as the investment banker, and Alvarez & Marsal is serving as the financial advisor to the Company. Norton Rose Fulbright US LLP is the local bankruptcy counsel. Hilco Valuation Services, LLC is the appraisal advisor. Epiq is the claims agent. GLOBAL CLEAN ENERGY: Secures Deal With Lenders, Project Contractor ------------------------------------------------------------------ Global Clean Energy Holdings, Inc. (OTCMKTS: GCEH), sought Chapter 11 protection with a prepackaged plan of reorganization negotiated with Vitol Americas Corp., as RCF lender, an ad hoc group of term loan lenders which holds approximately 96% of the term loans, and contractor CTCI Americas, Inc. Noah Verleun, CEO of the Debtors, explains in court filings that the Restructuring Support Agreement with the parties and the Plan reflect months of difficult discussions that have not only kept the Company operational, but have been carefully structured to avoid a prolonged in-court process -- enabling the restructured Company to emerge as a viable going concern. This is especially meaningful now, as the Company's facility in Bakersfield, California, has recently become operational and is beginning to fulfill its long-standing goal of producing renewable diesel at scale from vegetable oils, including Camelina oil. Negotiations With Parties Despite the Company's success in expanding its renewable energy business and streamlining operations, Global Clean has been negatively impacted by persistent delays and cost overruns in the construction of the Bakersfield Facility, as well as operational challenges facing the green energy industry as a whole. In the fall of 2024, the Company's advisor team began to engage in earnest with an ad hoc group of the Term Loan Lenders -- collectively holding 96% of the Term Loans -- and their advisors, Latham & Watkins LLP, as legal counsel, and Perella Weinberg Partners, as financial advisor. Shortly thereafter, the Company and its advisors commenced discussions with CTCI Americas on a potential global settlement related to the various disputes between the parties. CTCI is an engineering services company whose publicly traded parent is based in Taiwan. CTCI had agreed to complete the Bakersfield facility by January 2022 but significant delays and cost overruns plagued the project for years. In addition to disagreements concerning the amount of CTCI's claims, there also emerged a dispute among the Term Loan Lenders and CTCI as to the relative priority of their claims. The Term Loan Lenders and the Company, on the one hand, believed that CTCI's claims are contractually subordinated to the secured claims of the Term Loan Lenders. The Term Loan Lenders also believed that CTCI's claims are invalid and unenforceable. CTCI disputed these contentions. In an effort to seek consensus across its capital structure, the Company facilitated discussions between CTCI, including through its advisors -- Davis Wright Tremaine LLP and Haynes & Boone, LLP, as legal counsel, and BDO Capital Advisors, LLC, as financial advisor -- and the Ad Hoc Term Lender Group and their advisors. During the heat of these restructuring negotiations (December 2024 to April 2025), and despite the overhang risk related to relative lien and claim priority, the Term Loan Lenders agreed to six additional amendments to the credit agreement to provide the Company with over $75 million of additional loans, half of which was advanced in just the two months prior to the Petition Date. In parallel with these restructuring negotiations, the Company, with assistance from Lazard, expanded its marketing process for the Upstream Business in December 2024 to include a comprehensive marketing process for all, substantially all, or any portion of the enterprise. The Company did not receive any actionable proposals to date. The time amongst the Debtors' stakeholders and their advisors was well spent, as the Company was able to reach agreement with, and support from, Vitol, the Ad Hoc Term Lender Group, and CTCI (collectively, the "Consenting Stakeholders"). Following months of arm's-length negotiations, the Debtors and the Consenting Stakeholders entered into the Restructuring Support Agreement. The material terms of the restructuring transactions memorialized in the RSA are further set forth in the Plan. Chapter 11 Plan The Plan contemplates a comprehensive reorganization that will result in an infusion of new financing to fund Global Clean's emergence from these chapter 11 cases and a sustainable pro forma capital structure that will provide Global Clean with substantial operational breathing room. The Plan will issue $2.1 billion of take back paper in the form of new revolving loans (i.e., the Exit RCF Facility), new super senior term loans (i.e., the New Super Senior Exit Facility), new senior secured term loans (i.e., the New Senior Secured Term Facility and the Subordinated Senior Secured Term Facility), new junior term loans (i.e.¸ the Subordinated Junior Term Facility), and post-confirmation payment obligations (i.e., the Post-Exit CTCI Senior DIP Payment Obligation and the Subordinated Secured EPC Claim) (collectively, the "Exit Facilities"). A key portion of the Plan is the settlement with CTCI embodied therein. Upon the effective date of the Plan, CTCI will receive its pro rata share of the Takeback Debt and 55.6% of the New Preferred Equity in full and final satisfaction of the CTCI Payment Obligations (the "CTCI Settlement"). The CTCI Settlement avoids costly and time-consuming litigation that had the prospect of delaying the Debtors' speedy path through these chapter 11 cases. Resolution of this potentially protracted litigation, the Debtors' restructured balance sheet that will provide the Company greater operational breathing room, and the potential improved optimization and debottlenecking at the Bakersfield Facility toward increased RD production will position Global Clean well for the future. The Debtors will fund or make distributions under the Plan with the Exit Facilities, the issuance of new equity interests (i.e., the New Common Stock and the New Preferred Equity), and cash on hand. In particular, and among other things, the Plan provides for: (a) the conversion of Allowed Prepetition RCF Claims into the Exit RCF Facility; (b) each Holder of Allowed Prepetition Term Loan Claims to receive its Pro Rata share of apportioned Takeback Debt, 4/9ths (44.4%) of the New Preferred Equity, and 100% of the New Common Stock; (c) each Holder of Allowed Subordinated EPC Claims to receive its Pro Rata share of apportioned Takeback Debt and 5/9ths (55.6%) of the New Preferred Equity; and (d) each Holder of Allowed General Unsecured Claims to receive its Pro Rata share of the GUC Cash Pool, provided that the GUC Cash Pool is subject to certain reductions. To effectuate this comprehensive restructuring and ensure the Debtors' successful emergence from chapter 11, the Debtors have agreed to seek approval of the following proposed timeline to move swiftly through the chapter 11 cases: * Entry of the Interim DIP Order: No later then three days after the Petition Date; * Entry of the Final DIP Order: No later than 30 days after the Petition Date; * Entry of the order assuming the SOA and the SSA: No later than 30 days after the Petition Date; * Entry of an order approving the Disclosure Statement: No later than 60 days after the Petition Date; * Entry of an Order approving the Exit Facilities: No later than 75 days after the Petition Date; * Entry of an order confirming the Plan: No later than 110 days after the Petition Date; and * Plan Effective Date: No later than 120 days after the Petition Date. About Global Clean Energy Global Clean Energy Holdings, Inc. (OTCQB:GCEH) is a vertically integrated renewable fuels company specializing in the development and cultivation of camelina, a nonfood, regenerative, intermediate oilseed crop, which is used for the production of advanced biofuels and biomaterials. With a vision that begins in the laboratory, moves through the farm gate, and finishes with renewable fuels, GCE's farm-to-fuels value chain integration provides unrivaled access to reliable, ultra-low carbon feedstocks and is unparalleled in the sustainable fuels industry. On the Web: http://www.GCEholdings.com/ Global Clean Energy Holdings, Inc., and its affiliates sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 25-90113) on April 16, 2025, to seek confirmation of a prepackaged plan negotiated with lenders and the contractor for its Bakersfield, California facility. The Company reported $1.598 billion in total assets against $1.585 billion in total debt as of Sept. 30, 2024. Kirkland & Ellis is serving as restructuring counsel, Lazard is serving as the investment banker, and Alvarez & Marsal is serving as the financial advisor to the Company. Norton Rose Fulbright US LLP is the local bankruptcy counsel. Hilco Valuation Services, LLC is the appraisal advisor. Epiq is the claims agent. GLOBAL CONCESSIONS: Hires Keck Legal LLC as Legal Counsel --------------------------------------------------------- Global Concessions, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Keck Legal, LLC as counsel. The firm will render these services: (a) give the Debtor legal advice with respect to its powers and duties; (b) prepare on behalf of the Debtor necessary legal papers; (c) assist examination of the claims of creditors; (d) assist with formulation and preparation of the disclosure statement and plan of reorganization and with the confirmation and consummation thereof; and (e) perform all other legal services for the Debtor. The firm will be paid at these rates: Benjamin R. Keck $465 per hour Maysen Moorehead $265 per hour Omar Esquivel Breton $195 per hour Selah Owusu $125 per hour Miguel Quinonez $105 per hour Ashleigh Rucker $95 per hour On March 26, 2025, the Debtor paid an initial retainer deposit of $75,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Keck 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: Benjamin Keck, Esq. Keck Legal, LLC 2801 Buford Highway NE, Suite 115 Atlanta, GA 30329 Tel: (470) 826-6020 Email: bkeck@kecklegal.com About Global Concessions, Inc. Global Concessions Inc., established in 1990 and headquartered in Atlanta, Georgia, specializes in operating food and beverage concessions, primarily within major transportation hubs across the United States. The Company has expanded its portfolio to include a diverse range of dining experiences, from quick-service partnerships with renowned brands like IHOP Express, Ben & Jerry's, and Nathan's Famous, to unique, stand-alone restaurants such as Sweet Georgia's Juke Joint and One Flew South. Global Concessions Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-53640) on April 2, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million. The Debtor is represented by Benjamin Keck, Esq. at KECK LEGAL, LLC. GO LAB: Hires Pierce Atwood LLP as Special Counsel -------------------------------------------------- Go Lab, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Pierce Atwood LLP as special corporate counsel. The firm will provide certain legal services necessary to the efficient administration of these cases, including, but not limited to, counsel regarding corporate and transactional matters related to exit financing that is to be provided under the Debtors' proposed plan of reorganization. The firm will be paid at these rates: Kris J. Eimicke $695 hour James Saffian $585 hour Andrea Suter $425 hour The firm has a claim in the amount of $54,000 for legal services and expenses rendered prior to the Petition Date. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Kris J. Eimicke, Esq., a partner at Pierce Atwood 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: Kris J. Eimicke, Esq. Pierce Atwood LLP 254 Commercial Street Portland, ME 04101 Tel: (207) 791-1100 Fax: (207) 791-1350 Email: keimickel@pierceatwood.com About Go Lab, Inc. 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. GO LAB: Seeks to Hire Berry Dunn McNeil as Tax Accountant --------------------------------------------------------- Go Lab, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Berry Dunn McNeil & Parker, LLC d/b/a BerryDunn as tax accountant. The firm will provide tax services and other related accounting services, including without limitation consulting services in connection with potential net operating losses. The firm will be paid at these rates: Principal - Tax $535 per hour Principal - Audit $535 per hour Senior Manager - Business Valuation $395 per hour Manager - Audit $350 per hour Senior Audit $290 per hour Tax Specialist $255 per hour Staff Analyst $215 per hour Staff Auditor $165 per hour Prior to the Petition Date, the Debtors owed the firm $109,067 for unpaid services performed and an additional $4,408 in unpaid finance charges. BerryDunn has agreed to waive this receivable so that it will not be a creditor in these cases. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Robert Leonard, a partner at Berry Dunn McNeil & Parker, LLC d/b/a BerryDunn, 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 Leonard Berry Dunn McNeil & Parker, LLC d/b/a BerryDunn 2211 Congress St. Portland, ME 04102 Tel: (207) 541-2200 About Go Lab, Inc. 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. GRAND AUGUSTA: Case Summary & One Unsecured Creditor ---------------------------------------------------- Debtor: Grand Augusta LLC 417 Grand Augusta Lane Las Vegas, NV 89144 Business Description: Grand Augusta LLC holds full ownership rights to the property located at 417 Grand Augusta Lane, Las Vegas, NV 89144, which has an estimated value of $1.5 million. Chapter 11 Petition Date: April 15, 2025 Court: United States Bankruptcy Court District of Nevada Case No.: 25-12125 Debtor's Counsel: Michael J. Harker, Esq. LAW OFFICES OF MICHAEL J. HARKER 2901 El Camino Ave., Suite 200 Las Vegas, NV 89102 Tel: 702-248-3000 E-mail: notices@harkerlawfirm.com Total Assets: $1,500,000 Total Liabilities: $2,033,905 The petition was signed by Shane Hakakian as managing member. The Debtor has named US Bank, based at Shelard Plaza on County Road 18 in Minneapolis, Minnesota 55426, as its only unsecured creditor, holding a claim valued at $533,905. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/OQQJX2I/GRAND_AUGUSTA_LLC__nvbke-25-12125__0001.0.pdf?mcid=tGE4TAMA HALL OF FAME: Reports $55.9 Million Net Loss in 2024 ---------------------------------------------------- Hall of Fame Resort & Entertainment Co. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $55.9 million on $21.2 million of total revenues for the year ended Dec. 31, 2024, compared to a net loss of $68.8 million on $24.1 million of total revenues for the year ended Dec. 31, 2023. Cleveland, Ohio-based Grant Thornton LLP, the Company's auditor since 2023, issued a "going concern" qualification in its report dated Mar. 26, 2025, citing that the Company has sustained recurring losses through December 31, 2024 and utilized cash from operations of $10.9 million during the year ended December 31, 2024. The Company has $109.5 million of debt due through December 31, 2025, and will need to raise additional financing to accomplish its development plans and fund its working capital. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. On October 26, 2024, the Company received a notice of termination due to event of default on its waterpark ground lease. Under the waterpark ground lease, the notice of termination required that the Company immediately surrender the waterpark premises and related improvements to the landlord. The event of default under the Waterpark Ground Lease results in an event of default under certain of the Company's loan agreements. Such loan agreements under which the Company is in default total approximately $81 million gross principal outstanding as of December 31, 2024. Given the Company's financial position, the Company is in default or risks becoming in default under certain other loan agreements. The Company will need to raise additional financing to accomplish its development plan and fund its working capital. The Company is seeking to obtain additional funding through debt, construction lending, and equity financing. There are no assurances that the Company will be able to raise capital on terms acceptable to the Company or at all. Cash flows generated from the Company's operations are insufficient to meet its current operating costs. If the Company is unable to obtain sufficient amounts of additional capital, it may be required to reduce the scope of its planned development, which could harm its financial condition and operating results, or it may not be able to continue to fund or must significantly curtail its ongoing operations. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/4x72h62c About Hall of Fame Resort Hall of Fame Resort & Entertainment Co. is a resort and entertainment company leveraging the power and popularity of professional football and its legendary players in partnership with the National Football Museum, Inc., doing business as the Pro Football Hall of Fame. Headquartered in Canton, Ohio, the Company owns the DoubleTree by Hilton located in downtown Canton and the Hall of Fame Village, which is a multi-use sports, entertainment, and media destination centered around the PFHOF's campus. As of Dec. 31, 2024, the Company had $366.7 million in total assets, $294.5 million in total liabilities, and a total equity of $72.2 million. The Company's accumulated deficit was $273.6 million as of December 31, 2024. HEALTHLYNKED CORP: Issues $420K Note, Extends $1.2M Debt Maturity ----------------------------------------------------------------- HealthLynked Corp. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company issued and sold a convertible promissory note in the principal amount of $420,000 to the Mary S. Dent Gifting Trust. The Purchaser is controlled by the Chief Executive Officer and Chairman of the Company, Dr. Michael Dent. The Note was issued in exchange for undocumented advances totaling $420,000 made by the trust between September and November 2024. The Note matures on September 20, 2025. Proceeds from the Note have been and will be used for working capital and other general corporate purposes. The Note accrues interest at a rate of 12% per annum. However, such rate shall increase to an annual rate of 18% per annum for so long as any Event of Default (as defined in the Note) remains uncured. The Note is convertible into shares of Company common stock, par value $0.0001 at the option of the Purchaser prior to the Maturity Date. The conversion price per share of Common Stock under each of the Notes is $0.0375. On March 20, 2025, the Company and the Purchaser entered into a Notes Extension Agreement pursuant to which the maturity dates on 12 notes payable to the Purchaser with aggregate principal totaling $1,216,500 were extended until September 20, 2025 in exchange for a 10-year warrant to purchase 1,353,356 shares of Common Stock at an exercise price of $0.0375 per share. The interest rate on the Extended Notes was also increased from 12% to 15% after March 20, 2025. The Notes and the Warrant were issued to the Purchaser, an accredited investor, in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933 and Regulation D promulgated thereunder. The Company will rely on this exemption from registration based in part on representations made by the Purchaser in the Purchase Agreement. The Notes and the Warrant, and any shares issuable upon conversion of the Note and exercise of the Warrant, have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration under the Securities Act or an exemption from such registration requirements. About HealthLynked Corp. Naples, Fla.-based HealthLynked Corp. was incorporated in the State of Nevada on August 4, 2014. It operates a cloud-based patient information network and record archiving system in the United States and currently operates through three distinct divisions: the Health Services Division, the Digital Healthcare Division, and the Medical Distribution Division. New York, N.Y.-based RBSM LLP, the Company's auditor since 2014, issued a "going concern" qualification in its report dated March 31, 2025, attached in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has recurring losses from operations, limited cash flow, and an accumulated deficit. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of September 30, 2024, HealthLynked had $2,758,158 in total assets, $4,691,077 in total liabilities, and $1,932,919 in total stockholders' deficit. HIGH POINT: Seeks Chapter 11 Bankruptcy in Tennessee ---------------------------------------------------- On April 11, 2025, High Point LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Middle District of Tennessee. According to court filing, the Debtor reports between in debt owed to 50 and 99 creditors. The petition states funds will be available to unsecured creditors. About High Point LLC High Point LLC, doing business as Innovative Circuits, Inc., is a comprehensive contract electronics manufacturing company with expertise in electronics design and production. The Company offers a variety of services, including component procurement, inventory management, printed circuit board assembly, in-circuit and functional testing, sub-assembly, box build, and extensive engineering support. It serves a wide range of industries such as telecommunications, computer and server products, microprocessor development systems, data acquisition, automotive aftermarket, emergency lighting, shipping and package distribution, industrial test equipment, railroad transportation, and medical applications, among others. High Point LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Case No. 25-01563) on April 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Charles M. Walker handles the case. The Debtor is represented by Robert J. Gonzales, Esq. at EMERGELAW, PLC HIGHBANK RESOURCES: Files Corporate Assignment in Bankruptcy ------------------------------------------------------------ Highbank Resources Ltd. issued a news release as formal notice that Highbank Resources Ltd. has filed a Corporate Assignment in Bankruptcy effective April 10, 2025, under section 49 of the Bankruptcy and Insolvency Act. The Company is unable to address any current significant losses nor any further obligations as they become due. The Company currently has two directors on board. All further matters will be handled by D. Manning & Associates Inc.- Licensed Insolvency Trustee of Vancouver, B.C. A First meeting of Creditors is scheduled for April 25, 2025. Creditors will be notified of the zoom link and will be forwarded information and documentation relating to their Proof of Claim. Highbank Resources Ltd. engages in the acquisition, exploration, and development of mineral properties in Canada. It primarily mines for sand and gravel resources. The company holds interest in the Swamp Point North sand and gravel quarry located in Portland Canal, British Columbia. It also holds an option agreement to acquire Terra Nova property located in Newfoundland and Labrador. Highbank Resources Ltd. was incorporated in 1980 and is headquartered in Vancouver, Canada. HOOTERS OF AMERICA: June 16, 2025 Claims Filing Deadline Set ------------------------------------------------------------ The U.S. Bankruptcy Court for the Norther District of Delaware set June 16, 2025, as the last date for all persons or entities to file proofs of claim against Hooters of America LLC and its debtor-affiliates. The Court also set Sept. 29, 2025, as the deadline for all governmental units to file their claim against the Debtors. Persons and entities must file a proof of claim so that it is received on or before the applicable Bar Date. Proofs of claim may be submitted: (i) electronically through Kroll's Web site, using the interface available on such Web site located at https://cases.ra.kroll.com/Hooters/ or (ii) by delivering the original proof of claim to: a) If by First-Class Mail: Hooters of America, LLC Claims Processing Center c/o Kroll Restructuring Administration LLC Grand Central Station, PO Box 4850 New York, NY 10163-4850 b) If by overnight courier or hand delivery: Hooters of America, LLC Claims Processing Center c/o Kroll Restructuring Administration LLC 850 3rd Avenue, Suite 412 Brooklyn, NY 11232 Proofs of claim will be deemed filed when actually received by Kroll. Proofs of claim may not be delivered via facsimile or electronic mail transmission. Any facsimile or electronic mail submissions will not be accepted. About Hooters of America Hooters of America, LLC, owner and operator of a restaurant chain with hundreds of locations in the United States, and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80078) on March 31, 2025. Founded in 1983, the Debtors own and operate Hooters, a renowned brand in the casual dining and sports entertainment industries. Their global portfolio includes 151 company-owned and operated locations and 154 franchised locations across 17 countries. Known for their world-famous chicken wings, beverages, live sports, and legendary hospitality, the Debtors also partner with a major food products licensor to offer Hooters-branded frozen meals at 1,250 grocery store locations. The case is before the Hon. Scott W Everett. The Debtors Co-Bankruptcy Counsel are Holland N. O'Neil, Esq., Stephen A. Jones, Esq., and Zachary C. Zahn, Esq., at FOLEY & LARDNER LLP, in Dallas, Texas. The Debtors' General Bankruptcy Counsel are Ryan Preston Dahl, Esq., at Ropes & Gray LLP, in New York, and Chris L. Dickerson, Esq., Rahmon J. Brown, Esq., and Michael K. Wheat, Esq., at Ropes & Gray Llp, in Chicago, Illinois. The Debtors' Investment Banker is Solic Capital, LLC. The Debtors' Financial Advisor is Accordion Partners, LLC. The Debtors' Notice, Claims, Solicitation & Balloting Agent is Kroll Restructuring Administration LLC. HOUSE SPIRITS: Intends to Sell Barrels of Whiskey in Chapter 11 --------------------------------------------------------------- Emily Lever of Law360 Bankruptcy Authority reports that House Spirits Distillery, a bankrupt liquor producer, has proposed a plan in Chapter 11 to sell its inventory of 6,800 barrels of whiskey, requesting permission to conduct small-scale sales as necessary to preserve liquidity throughout the proceedings. About House Spirits Distillery LLC House Spirits Distillery LLC, operating under the name Westward Whiskey, is a Portland, Oregon-based distillery that produces, markets, sells, and distributes high-quality American single malt whiskeys. Westward has become one of the most well-known and respected craft distilleries in the U.S., leading the way in the emerging Premium American Whiskey category. Unlike traditional single malts made only from malted barley, Westward employs a distinctive process that blends elements from American craft ale, Scottish single malt, and bourbon traditions. The distillery benefits from the unique climate of the Pacific Northwest, where hot, dry summers and cool, wet winters contribute to the development of exceptional, world-class whiskeys. House Spirits Distillery LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10660) on April 6, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Karen B. Owens handles the case. The Debtor is represented by Joseph C. Barsalona II, Esq. at PASHMAN STEIN WALDER HAYDEN, P.C. The Debt INTEGRITY REAL: Hires Onsager Fletcher Johnson as Legal Counsel --------------------------------------------------------------- Integrity Real Estate, LLC seeks approval from the U.S. Bankruptcy Court for the District of Colorado to employ Onsager Fletcher Johnson Palmer LLC as legal counsel. The firm will render these services: (a) advise the Debtor of its rights and duties; (b) assist, advise and represent the Debtor in any manner relevant to preserving and protecting its estate; (c) prepare on the Debtor's behalf all necessary legal papers; (d) appear in court and protect the Debtor's interests before the court; (e) assist in the winding up and dismissal of bankruptcy proceedings of the Debtor, post-confirmation; (f) assist the Debtor in administrative matters; and (g) perform all other legal services for the Debtor which may be necessary and proper in these proceedings. The firm will be paid at these rates: Christian Onsager $600 per hour J. Brian Fletcher $425 per hour Andrew D. Johnson $400 per hour Alice A. White $450 per hour Joli A. Lofstedt $425 per hour Gabrielle G. Palmer $325 per hour Paralegals $150 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Ms. Johnson 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 D. Johnson, Esq. Gabrielle G. Palmer, Esq. Onsager Fletcher Johnson Palmer, LLC 600 17th Street, Suite 425N Denver, CO 80202 Tel: (720) 457-7061 Email: gpalmer@OFJlaw.com ajohnson@OFJlaw.com About Integrity Real Estate, LLC Integrity Real Estate, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 24-16853) on November 15, 2024, listing under $1 million in both assets and liabilities. Judge Thomas B. McNamara handles the case. Allen Vellone Wolf Helfrich & Factor PC serves as the Debtor's counsel. INTERNATIONAL LAND: Increases Authorized Shares to 250 Million -------------------------------------------------------------- International Land Alliance Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company submitted for filing with the Wyoming Secretary of State a Certificate of Amendment to its Articles of Incorporation to increase the number of authorized shares of its Common Stock, par value $0.001, from 150,000,000 to 250,000,000. About International Land Alliance San Diego, Calif.-based International Land Alliance, Inc. was incorporated under the laws of the State of Wyoming on September 26, 2013. The Company is a residential land development company with target properties located in the Baja California, Northern region of Mexico and Southern California. The Company's principal activities are purchasing properties, obtaining zoning and other entitlements required to subdivide the properties into residential and commercial building plots, securing financing for the purchase of the plots, improving the properties' infrastructure and amenities, and selling the plots to homebuyers, retirees, investors, and commercial developers. Henderson, Nev.-based Bush & Associates CPA LLC, the Company's auditor since 2024, issued a "going concern" qualification in its report dated June 27, 2024, citing that the Company has suffered net losses from operations, which raises substantial doubt about its ability to continue as a going concern. The Company has yet to file its Annual Report on Form 10-K for the period ended December 31, 2024. JAC RENTALS: Seeks to Hire Patrick Gros as Accountant ----------------------------------------------------- JAC Rentals Excavators, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Louisiana to employ Patrick Gros CPA, APAC as accountant. The Debtor requires an accountant to prepare its monthly operating reports and provide general accounting and financial advisory services. The firm will be paid at these rates: Partner $275 per hour Manager $175 per hour Senior Accountant $150 per hour Staff Accountant $105 per hour The firm received a retainer of $7,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Gros 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: Patrick Gros, CPA Patrick Gros CPA, APAC 651 River Highlands Blvd. Covington, LA 70433 Telephone: (985) 898-3512 Email: info@PJGrosCPA.com About JAC Rentals Excavators, LLC JAC Rentals Excavators LLC specializes in heavy equipment rentals for construction and industrial projects. The Company offers a wide range of machinery, including excavators, skid steers, lifts, and tools. Serving Texas and Louisiana, JAC Rentals provides equipment for both large-scale projects and smaller tasks. JAC Rentals Excavators LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. La. Case No. 25-20139) on March 24, 2025. In its petition, the Debtor reports total assets of $4,593,578 and total liabilities of $1,554,519. Honorable Bankruptcy Judge John W. Kolwe handles the case. The Debtor is represented by Wade N. Kelly, Esq., at Packard Lapray. JACKSON HOSPITAL: Court Won't Stay Post-Petition Financing Order ---------------------------------------------------------------- Judge Christopher L. Hawkins of the United States Bankruptcy Court for the Middle District of Alabama denied UMB Bank, N.A. and ServisFirst Bank's motions for a limited stay pending appeal of the final order authorizing post-petition financing in the bankruptcy case of Jackson Hospital & Clinic Inc. The Court's Final Order: (I) authorized the Debtors to (A) Obtain Postpetition Secured Financing Pursuant to Section 364 of the Bankruptcy Code, (B) Use Cash Collateral, (II) granted Liens and Superpriority Administrative Expense Status, (III) granted Adequate Protection, (IV) modified the Automatic Stay, and (V) granted Related Relief. On Feb. 3, 2025, the Debtors filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. On the same day, the Debtors filed a motion for interim and final approval of $24.5 million in DIP Loans from Jackson Investment Group, LLC. The DIP Motion sought approval of DIP Liens on assets that included the Prepetition Collateral, which would prime the liens previously granted to the Movants. The Debtors argued that priming the Movants' liens was appropriate because the Debtors were offering the Movants adequate protection in the form of replacement liens on all assets of the Debtors (subject and subordinate to the Carve Out, the DIP Liens, and the Permitted Prior Liens). The DIP Motion also contained a Carve Out provision, under which a certain portion of cash collateral would be reserved each week in a segregated account to pay for, among other things, certain statutory fees and certain professional fees allowed by the Court, with all parties' rights to object to those professional fees reserved. The Movants filed limited objections to the DIP Motion, noting their efforts to negotiate with the Debtors and the DIP Lender to ensure the terms of the DIP Facility adequately protected their prepetition security interests. On Feb. 5, 2025, the Court held an initial hearing on the DIP Motion. At that hearing, counsel for UMB stated that modifications to the proposed interim order had been negotiated with the Debtors and the DIP Lender, including additional adequate protection in the form of superpriority administrative expense claims to the extent of any diminution in value of the Prepetition Collateral. Following the hearing, the Court entered an order approving the DIP Facility on an interim basis, reflecting the modifications UMB had negotiated with the DIP Lender and the Debtors, as noted on the record at the hearing. On March 4, 2025, the Court held a final hearing on the DIP Motion. The Debtors, the Movants, the DIP Lender, and the Official Committee of Unsecured Creditors resolved most of their disputes over the DIP Motion, but the Committee's proposed treatment of Trailing Expenses remained unresolved. Over the objection of the Movants, the Court approved a two-tiered Carve Out -- agreed to by the DIP Lender but not the Movants -- to cover post-petition expenses, salaries, wages, and payroll taxes incurred in the ordinary course of the Debtors' operations. On March 19, 2025, UMB filed a Notice of Appeal, and ServisFirst filed a virtually identical Notice of Appeal. The Movants limited the Appeals to the provisions in the Final DIP Order authorizing the Challenged Carve Outs. In the Appeals, the Movants assert that the Challenged Carve Outs are inconsistent with the Bankruptcy Code and improperly infringe on the Movants' rights as secured creditors. In the Motions, the Movants seek a limited stay of the Final DIP Order pending appeal, asserting that they do not seek to stay the Final DIP Order in its entirety, but only the provisions related to the Challenged Carve Outs. Because a stay pending appeal is an exceptional remedy, a court may grant a stay only when a movant clearly establishes four elements: (a) the movant is likely to prevail on the merits on appeal; (b) absent a stay the movant will suffer irreparable damage; (c) the adverse party will suffer no substantial harm from the issuance of the stay; and (d) the public interest will be served by issuing the stay. The Movants assert that they are likely to succeed because the Challenged Carve Outs are an unprecedented expansion of Section 364(d) of the Bankruptcy Code to benefit post-petition vendors and labor, and because neither the Debtors nor the Committee provided evidence demonstrating they satisfied the requirements under Section 364(d). In short, the Movants have staked their argument on the proposition that the Challenged Carve Outs constitute post-petition financing under Section 364(d). However, the Movants cited no case law supporting this proposition. Given that the Movants provided no authority supporting their primary theory regarding the Court's error in entering the Final DIP Order, the Court disagrees with the Movants that they are likely to succeed in the Appeals. The Movants argue that monetary remedies would not be available in the absence of a stay because Section 364(e) protects entities that have extended post-petition credit in good faith if the order authorizing the extension of credit is reversed or modified on appeal. Because of this potential protection, the Movants assert that, absent a stay, they effectively will lose their ability to recover from the DIP Lender and the ordinary course trade vendors and employees with respect to the Challenged Carve Outs. This argument hinges, however, on the proposition that the Challenged Carve Outs constitute post-petition financing. As set forth above, the Movants failed to cite in their papers or at the hearing any case law to support that legal argument. Accordingly, with respect to this argument, the Movants have failed to establish they will be irreparably harmed in the absence of a stay pending appeal, the Court finds. The Movants also asserted that if the case were to take an abrupt turn into administrative insolvency, there may be no money left to pay them if they succeed in the Appeals. However, the Movants presented no evidence that this risk is actual and imminent. As it currently stands, the record contains no evidence that the DIP Lender has declared a default related to the Debtors' failure to comply with any Approved Budget, which would be the key indicator of a slide toward administrative insolvency and cause for concern that the Movants' access to a monetary remedy is at risk. Without such evidence, the Movants have failed to meet their burden of establishing irreparable injury, the Court concludes. The Court has grave concerns about the effect of a stay on the DIP Lender's obligations under the DIP Credit Agreement. At the hearing on the Motions, the Court questioned counsel for the Movants, as well as counsel for the Committee, the DIP Lender, and the Debtors, whether a stay of the Final DIP Order would constitute an Event of Default under the DIP Credit Agreement. The Court has every reason to believe that the DIP Lender, the Committee, the Movants, and the Debtors would negotiate in good faith as to a stipulation that would ensure funding even if the Final DIP Order is stayed. However, as of the entry of this Memorandum Opinion and Order, no such stipulation is of record. The Court is unwilling to take the chance that an order staying the Final DIP Order would cause termination of the DIP Credit Agreement. The Court places the most weight on the substantial harm to essentially all parties involved and the disservice of the public interest that would result from a termination of funding. These elements overwhelmingly cut against granting the Motions. The Court finds that the Movants have failed to establish the elements necessary to support a stay pending appeal. A copy of the Court's decision dated April 8, 2025, is available at https://urlcurt.com/u?l=m9RwAj from PacerMonitor.com. About Jackson Hospital & Clinic Inc. Jackson Hospital & Clinic, Inc. is a non-membership, non-profit corporation based in Alabama. JHC is the direct or indirect parent company of JHC Pharmacy, LLC, an Alabama limited liability company that provides pharmacy services to JHC patients. JHC owns 100% of JHC Pharmacy. Additionally, JHC is a direct or indirect parent company of certain other entities that have not filed for bankruptcy. JHC operates a 344-bed healthcare facility in Montgomery, Ala., with a rich history dating back to 1894. Since its official opening in 1946, JHC has grown into one of the largest hospitals in Alabama, offering specialized services in cardiac care, cancer treatment, neurosciences, orthopedics, women's care, and emergency services. JHC's service area includes 16 counties across central Alabama. JHC and JHC Pharmacy filed Chapter 11 petitions (Bankr. M.D. Ala. Lead Case No. 25-30256) on February 4, 2025. In its petition, JHC reported between $100 million and $500 million in both assets and liabilities. Judge Christopher L. Hawkins handles the cases. The Debtors are represented by: Derek F. Meek, Esq. Marc P. Solomon, Esq. James P. Roberts, Esq. Andrew P. Cicero, III, Esq. Catherine T. Via, Esq. Burr & Forman, LLP 420 20th Street North, Suite 3400 Birmingham, AL 35203 Tel: (205) 251-3000 Email: dmeek@burr.com msolomon@burr.com jroberts@burr.com acicero@burr.com cvia@burr.com JGA DEVELOPMENT: To Sell Montclair Property to Kamas Park for $1.2M ------------------------------------------------------------------- JGA Development, LLC seeks approval from the U.S. Bankruptcy Court for the District of New York at a hearing on May 13, 2015 at 10:00 am, to sell Property in a private sale, free and clear of liens, interests, and encumbrances. The Debtor's Property is located at 517 Park Street, Montclair, NJ 07043. The Debtor is a real estate development company and its core business operations consist of acquiring distressed properties, improving them, and reselling them. The Debtor's financial distress is rooted in the economic side-effects of the COVID19 pandemic – construction and material costs significantly increased from original projections and the timeframe to complete jobs significantly increased as well. The Debtor wants to sell the Property to Kamas Park Street, LLC with the purchase price of $1,200,000.00. The closing date will be on or about May 15, 2025, with flexibility to accommodate bankruptcy court requirements. The Debtor will also pay 5% realty commission to be split between the Debtor's realtor and buyer's realtor. About JGA Development, LLC JGA Development, LLC, a real estate investment and development company in Vineland, N.J., filed Chapter 11 petition (Bankr. D.N.J. Case No. 24-16864) on July 9, 2024. At the time of the filing, the Debtor disclosed $10 million to $50 million in both assets and liabilities. Judge Andrew B. Altenburg, Jr. oversees the case. The Debtor tapped the Law Offices of Daniel Reinganum as bankruptcy counsel and Michele Zelina, Esq., as special counsel. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. JOANN INC: Selling Creativebug Assets via Hilco Streambank ---------------------------------------------------------- Hilco Streambank is seeking offers to acquire the operating assets of creativebug(R), a profitable arts and crafts content creation and subscription-based distribution platform with existing enterprise and consumer customers. Bids are due on April 17, 2025. creativebug(R) provides all-access, on-demand learning experiences, allowing subscribers to explore thousands of professionally produced instructional videos for sewing, art, craft, and needle art. Classes cater to all skill levels, with expert-led lessons filmed and edited in-house in Berkeley, CA, ensuring high-quality content delivery. Over the prior five fiscal years, creativebug(R) averaged over $1.2 million in annual adjusted EBITDA. The company generated more than $4 million in revenue in calendar year 2024. The platform serves over 25,000 consumer members and reaches more than 223,000 patrons across 1,200+ enterprise library systems. Hilco Streambank CEO Gabe Fried commented, "creativebug(R) is a healthy, profitable business with a strong operating team, a dedicated consumer and enterprise customer base, and a robust digital content library." Fried continued, "The enterprise membership program, launched in 2018, has proven to be an attractive model for the business and for subscribing libraries seeking high-quality, engaging content--and there remains a significant pipeline of qualified customers to convert. This opportunity should be attractive to operators in the maker community, content distribution platforms, digital media creators, craft suppliers, library content providers, and investors, and presents the opportunity to capitalize on a loyal subscriber base and fully operational business through an asset purchase." The sale of creativebug(R) is being conducted in connection with the bankruptcy of JOANN Inc., which, along with its affiliates, has entered into an agency agreement with GA Joann Retail Partnership, LLC and the prepetition term lenders, who have engaged Hilco Streambank to manage the sale. Click here for more information. Interested parties may contact Hilco Streambank directly at Project+Thread@HilcoGlobal.com. About Hilco Streambank: Hilco Streambank is a market-leading advisory firm specializing in intellectual property valuation, advisory, and monetization. Having completed numerous transactions, including sales in publicly reported transactions, private transactions, and online sales through IPv4.Global, Hilco Streambank has established itself as the premier intermediary in the consumer brand, internet, technology, and telecom communities. Hilco Streambank is part of Northbrook, Illinois-based Hilco Global, the world's leading authority on maximizing the value of business assets by delivering valuation, monetization, and advisory solutions to an international marketplace. Hilco Global operates more than twenty specialized business units offering services that include asset valuation and appraisal, retail and industrial inventory acquisition and disposition, real estate, and strategic capital equity investments. About Joann Inc. JOANN operates in the fabric and sewing industry with one of the largest assortments of arts and crafts products. JOANN has transformed itself into a fully-integrated, digitally-connected omni-channel retailer. JOANN reported a net loss of $200.6 million for the year ended Jan. 28, 2023. On March 18, 2024, JOANN Inc. and 9 affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10418). JOANN listed $2,257,700,000 in assets against $2,440,700,000 in liabilities as of Oct. 28, 2023. Judge Craig T. Goldblatt oversees the case. The Debtors tapped Latham & Watkins, LLP as legal counsel; Houlihan Lokey Capital, Inc. as investment banker; and Alvarez & Marsal North America, LLC, as financial advisor. Kroll Restructuring Administration, LLC is the noticing agent. JOANN Inc., on April 30, 2024 successfully emerged from its court-supervised financial restructuring process. 2nd Attempt Joann Inc. sought voluntary Chapter 11 petition for the second time under U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25 10068) on Jan. 15, 2025. Kirkland & Ellis is serving as legal counsel to JOANN, with Centerview Partners LLC serving as financial advisor and Alvarez & Marsal North America, LLC serving as restructuring advisor. JUMPSTAR ENTERPRISES: Claims to be Paid From Continued Operations ----------------------------------------------------------------- JumpStar Enterprises LLC d/b/a JumpStar Logistics filed with the U.S. Bankruptcy Court for the Southern District of Texas a Plan of Reorganization under Subchapter V dated March 17, 2025. JumpStar is a trucking and logistics company formed in 2014, operating in Houston, Texas, and offering TL, LTL, drayage, flatbed, warehousing, and storage services. JumpStar is wholly owned by its sole member, Kathleen Tyson. Prior to this Chapter 11 Case, JumpStar was also dealing with several creditors whose claims it could not timely pay, including, but not limited to, the Harris County Toll Road Authority, who sent a pre-petition citation for unpaid tolls against JumpStar in the amount of $339,592.51. In addition, JumpStar was facing contingent and unliquidated liabilities arising from at least two state court cases. In fact, this Chapter 11 Case was filed on an emergency basis due to a pending trial in the Roswurm Litigation, which was scheduled to commence on December 16, 2024 (the Petition Date). JumpStar had previously retained counsel in the Roswurm Litigation, but its counsel filed a Motion to Withdraw as Counsel, citing lack of payment, and that motion was ultimately granted by the state court judge on November 25, 2024. Without counsel, and facing an imminent trial and potential adverse judgment in the Roswurm Litigation, and with other financial issues mounting, JumpStar's management concluded that seeking bankruptcy relief, in particular a Chapter 11 reorganization under Subchapter V of the Bankruptcy Code, presented JumpStar's best option to stabilize and reorganize its affairs, and was in the best interest of its creditors. Under this Plan, the Debtor intends to distribute cash generated from its operations to holders of Allowed Claims. This Plan provides for the treatment of claims and interests as follows, and as more fully described herein: * Five classes of Secured Claims: Class 1 – Citizen's Bank; Class 2 – Equity Financial; Class 3 – Kubota; Class 4 – SBA; and Class 5 – C.H. Brown, which will be paid in accordance with existing agreement(s) between the Debtor and the Secured Creditor until paid in full. * Two classes of Unsecured Claims, which consist of (i) Class 6-1 - Unsecured Litigation Claim of Kenny Roswurm, which shall be fully satisfied by the assignment of claims against the Debtor's insurers for wrongful denial of the Debtor's insurance claim related to the Roswurm Litigation; and (ii) Class 6.2 – General Allowed Unsecured Claims, which shall receive pro rata distributions from payments made by the Debtor to the unsecured creditor's pool from the Debtor's disposable income. * Equity Interest: Class 7 – Kathleen Tyson, the Debtor's sole equity interest holder, will retain her ownership interests in the Debtor. * Five Priority (Ad Valorem) Tax Claims, which will be paid in full on the Effective Date. Class 6-1 consists of the Litigation Claim of Kenny Roswurm. This unsecured claim relates to the claims asserted against the Debtor in the Roswurm Litigation. This claim will be satisfied via an assignment of the Debtor's claims against its insurers for, among other things, wrongful denial of the Debtor's insurance claims submitted to its insurers in relation to the Roswurm Litigation. The Roswurm claim is impaired. Class 6-2 relate to the holders of Allowed Unsecured Claims. These claimants will receive a pro rata share of a portion of the Debtors projected disposable income as set forth on the projections. These payments will be made directly by the Debtor as disbursing agent. General unsecured claims are impaired. Kathleen Tyson is the sole member of the Debtor and will retain her equity interests in the Debtor. Ms. Tyson's interest is unimpaired and deemed to accept the Plan, and is not entitled to vote on the Plan. The Debtor, as the reorganized Debtor, will continue to operate its business and is authorized to take any actions it deems necessary to operate same. The Plan will be funded from the Debtor's disposable income earned from the Debtor's operations. A full-text copy of the Plan of Reorganization dated March 17, 2025 is available at https://urlcurt.com/u?l=IdxfLI from PacerMonitor.com at no charge. Counsel to the Debtor: Lloyd A. Lim, Esq. Rachel Thompson Kubanda, Esq. Michelle V. Friery, Esq. Kean Miller LLP 711 Louisiana Street, Suite 1800 South Tower Houston, TX 77002 Tel: (713) 362-2550 Email: Lloyd.Lim@KeanMiller.com Rachel.Kubanda@KeanMiller.com Michelle.Friery@KeanMiller.com About JumpStar Enterprises LLC Jumpstar Enterprises, LLC is a trucking and logistics company formed in 2014, operating in Houston, Texas. The Debtor filed Chapter 11 petition (Bankr. S.D. Texas Case No. 24-35874) on December 16, 2024, with up to $50,000 in assets and up to $1 million in liabilities. Drew McManigle serves as Subchapter V trustee. Judge Jeffrey P. Norman oversees the case. The Debtor is represented by Lloyd A. Lim, Esq., at Kean Miller, LLP. JUNK SHUTTLE: Unsecureds Will Get 16% of Claims over 3 Years ------------------------------------------------------------ Junk Shuttle LLC filed with the U.S. Bankruptcy Court for the Eastern District of Virginia a Plan of Reorganization dated March 17, 2025. Junk Shuttle, first organized as a limited liability company in Virginia in 2010, is a go-to name in the waste/junk removal business, having served Central Virginia for over fourteen years. While Junk Shuttle experienced typical bumps in the road over the years as it attempted to grow its name in the area, as with many businesses in its industry, positive growth was severely hampered in 2020 due to the completely unexpected COVID-19 impact on the entire and everyday life for all. After struggling through severe declines, to assist in its efforts to rebuild and rejuvenate after the operational downturn, Junk Shuttle sought and secured several loans to assist in liquidity and operations. Unfortunately, the structure of the financial transactions and repayment terms, coupled with ongoing operational expenses, proved to be too much to endure long term, notwithstanding the renewed demand for the Debtor's services post Covid-19. As a result, given that efforts to weather the storm were exhausted, ultimately the Debtor determined to seek SubChapter V bankruptcy protection in an effort to reorganize debts and operations. Mr. Wiley was also forced to personally seek the protections of Chapter 13 of the Bankruptcy Code. The Debtor maintains that it will have enough Cash over the life of the Plan to make the required payments demonstrated on the projected financial information. The financial projections show that the Reorganized Debtor will have projected disposable income, after payment of Allowed Secured Claims (and an estimated amount for the fees of the Subchapter V Trustee), through June 30, 2028 of $100,920.00. The final Plan payment is expected to be paid no later than June 30, 2028. This Plan, under Chapter 11 of the Bankruptcy Code, proposes to pay the Debtor's Allowed Claims via Disposable Income for three years. Allowed Secured Claims will be paid (a) over a period of up to three years with equal monthly payments, totaling the lesser of the amount owed and the value of the Collateral securing said Secured Claim, with an interest rate of 5%, (b) surrender of the Collateral and/or (c) as otherwise agreed by the Debtor/Reorganized Debtor and the Holder of the Secured Claim. Allowed Priority Claims will be paid in full with yearly payments for three years. Creditors holding Allowed General Unsecured Claims will receive Distributions in a pro rata amount from the Distribution Amount (Projected Disposable Income) on each Distribution Date (as applicable) after payment of all other Plan payments, which Distributions to Allowed General Unsecured Claims is projected to be approximately 16%. Furthermore, the Plan provides for the Company to continue as a going concern for the benefit of the landlord, employees, suppliers, customers, and others who rely on Junk Shuttle, all of whom are important constituents under Subchapter V that should be taken into consideration as mandated by Congress and courts around the Country. Class 3 shall consist of all Holders of non-priority General Unsecured Claims. Creditors holding Allowed General Unsecured Claims will receive Distributions in a pro rata amount from the Distribution Amount on each Distribution Date (as applicable) after payment of all other plan payments. Each Holder is estimated to receive 16%. This Class is impaired. Class 4 consists of Equity Security Holders. As allowed under the Bankruptcy Code, Equity Security of the Debtor shall thereafter hold the Equity Security of the Reorganized Debtor. After the Effective Date, Junk Shuttle shall continue to operate as usual under Mr. Wiley's direction and leadership. Payments under the Plan will be made with the Disposable Income of the Debtor/Reorganized Debtor. On the Effective Date, other Estate property shall revest in the Reorganized Debtor, subject to the Liens of Allowed Secured Creditors but only in the amount of the lesser of the amount owed or the value of the Collateral after taking into consideration all senior security interests, but otherwise free and clear of all other liens, claims, interests, and encumbrances. A full-text copy of the Plan of Reorganization dated March 17, 2025 is available at https://urlcurt.com/u?l=TggyHt from PacerMonitor.com at no charge. Counsel to the Debtor: Lynn Tavanner, Esq. Paula S. Beran, Esq. Tavenner & Beran, PLC 20 North 8th Street Richmond, VA 23219 Telephone: (804) 783-8300 Email: ltavanner@tb-lawfirm.com About Junk Shuttle Junk Shuttle, LLC, first organized as a limited liability company in Virginia in 2010, is a go-to name in the waste/junk removal business. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Va. Case No. 24-34738) on December 16, 2024, listing between $50,001 and $100,000 in assets and between $500,001 and $1 million in liabilities. Jennifer McLemore, Esq., at Williams Mullen serves as Subchapter V trustee. Judge Keith L. Phillips oversees the case. Paula S. Beran, Esq., and Lynn L. Tavenner, Esq., at Tavenner & Beran, PLC, served as the Debtor's legal counsel. K & M AMUSEMENT: Amends Unsecured Claims Pay Details ---------------------------------------------------- K & M Amusement Center, LLC, d/b/a MVP Family Fun Center, submitted a First Amended Chapter 11 Plan for Small Business under Subchapter V dated March 17, 2025. The Debtor is proposing to sell property of the bankruptcy estate, including all of its existing business operations, and its real estate parcel in Tewksbury, Massachusetts, either together or separately, to fund this Plan and to pay its creditors. To that end, the debtor has engaged a commercial real estate broker, Mark Kessler of Kessler Realty in Salem, Massachusetts to market the business and the real property. Mr. Kessler's employment is subject to the approval of the Bankruptcy Court, which authorized said employment on November 19, 2024. The sale price of any property of the estate, the commission(s) due to brokers, and all other terms of sale are subject to the review and approval of the Bankruptcy Court. Any proposed sale will be initiated through a motion filed with the Bankruptcy Court; creditors and other interested parties will be accorded an opportunity to object or comment, and may be heard at a hearing to approve such sale in Bankruptcy Court. On December 18, 2024 the Debtor and its principal creditor Colony Bank entered into a Stipulation Regarding Treatment of Secured Claim and Adequate Protection, which outlines several agreements between these parties concerning the course of this case. On December 20, 2024, an Amended Stipulation between the parties was filed with the Bankruptcy Court, along with a motion by Colony Bank for the Bankruptcy Court to approve the amended stipulation. The motion approving the amended stipulation was granted by the Bankruptcy Court on February 27, 2025. The stipulation contains a lock-step schedule of price reductions concerning the proposed sale of the Debtor's real estate parcel in Tewksbury, Mass. At the time the stipulation was filed, the list price for the property was $3,400,000.00. In the event that a purchase and sale contract is not signed and filed with the Bankruptcy Court, the list price for the property will be reduced. The Debtor's Plan is to sell its business and its real estate, or both together. The Debtor will market its arcade business as a going-concern and use the Net Sale Proceeds to pay creditors in accordance with the priorities of the Bankruptcy Code. Any remaining funds will be contributed to the Plan. The Debtor anticipates that the Net Sale Proceeds from a sale of either the real estate alone, or the entire business as a going concern will result in payment of all Administrative Claims, Priority Tax Claims, and will provide a distribution to General Unsecured Creditors. In the event that all General Unsecured Creditors with allowed claims are paid a 100% dividend and all expenses of the case are paid in full, excess funds will be retained by the debtor. Class 1, Secured Creditors, includes the Massachusetts Department of Revenue and Colony Bank and Credibly of Arizona, LLC. Allowed secured claims by these creditors will be paid in full in the amount stated as secured on line 9 of their proof of claim form. Such payment shall be made to a mortgagee from sale proceeds on the date of a real estate closing concerning the mortgaged property, and in all other cases on the Effective Date of the Plan. These creditors will retain any valid liens, including "replacement" liens, until the time their claim is paid. These creditors will not receive any regular, interim, or special payments until a distribution from the sale of the Debtor's assets is made, with the exception of adequate protection payments that may be agreed upon or ordered by the Bankruptcy Court. Class 3, General Unsecured Claims, includes four creditors who have submitted unsecured claims on or before the deadline for non governmental claims totaling $74,047.51. Allowed unsecured claims by these creditors will be paid on a pro rata basis in the amount stated on their proof of claim form, on the Effective Date of the Plan, to the extent that funds are available after payments are made to Class 1 and Class 2. These creditors will not receive any regular, interim, or special payments until a distribution from the sale of the Debtor's assets is made. This class is impaired and entitled to vote on the Plan. The Plan will be funded from a sale of substantially all of the Debtor's Assets, including but not limited to the real property located and known as 2087 Main Street, Tewksbury, Massachusetts, with all buildings and structures thereon, and with all contents and equipment thereon that are owned by the Debtor. A full-text copy of the First Amended Plan dated March 17, 2025 is available at https://urlcurt.com/u?l=CEUHjQ from PacerMonitor.com at no charge. Counsel to the Debtor: Douglas J. Beaton, Esq. Beaton Law Firm 800 Turnpike Street, Suite 300 North Andover, MA 01845, Tel: (978) 975-2608 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 Oct. 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. Douglas Beaton, Esq., at Beaton Law Firm, is the Debtor as bankruptcy counsel. KB3 2275: Seeks to Hire Divine Law Office as Special Counsel ------------------------------------------------------------ KB3 2275 Century LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Divine Law Office as special counsel. The Debtor needs the firm's legal assistance in preparing and filing an adversary complaint against Jorge Tobias Leal, The Jorge Tobias Leal Family Trust DTD 12/14/2004, Cresencio Garcia, Maria D. Garcia, Daniel L. Barraza, Veronia R. Barraza, and Peter Mehrian. The firm will be paid at these rates: Attorneys $450 per hour Associates $350 per hour Legal Assistants $175 per hour The firm will be paid a retainer in the amount of $12,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Sedoo Antonious Manu, Esq., a partner at Divine Law Office, 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: Sedoo Antonious Manu, Esq. Divine Law Office 2001 Addison Street, Ste 342 Berkeley, CA 94704 Tel: (888) 457-2575 Fax: (888) 415-5739 Email: sm@divine-law.com About KB3 2275 Century LLC KB3 2275 Century, LLC a Los Angeles-based real estate company operating from Avalon Boulevard. KB3 2275 Century filed Chapter 11 petition (Bankr. C.D. Calif. Case No. 25-10237) on January 14, 2025, listing between $1 million and $10 million in both assets and liabilities. Judge Neil W. Bason handles the case. The Debtor is represented by Onyinye N. Anyama, Esq., at Anyama Law Firm, A Professional Corp. LAMB WESTON: S&P Alters Outlook to Negative, Affirms 'BB+' ICR -------------------------------------------------------------- S&P Global Ratings revised its outlook on U.S.-based Lamb Weston Holdings Inc. to negative from stable and affirmed its 'BB+' issuer credit rating. At the same time, S&P affirmed its 'BB+' issue-level rating on the company's senior unsecured notes. The '4' recovery rating is unchanged, indicating its expectation for average (30%-50%; rounded estimate: 35%) recovery in the event of a payment default. S&P said, "The negative outlook reflects our expectation that Lamb's operating performance and credit metrics will continue to be pressured by a combination of intensifying competition, declining capacity utilization, and potential trade policy risks. However, we expect modest EBITDA improvements leading to leverage in the low-3x area in fiscal 2026 due to the company's cost savings programs." Intensifying competition from rivals and lower restaurant traffic have pressured Lamb's credit metrics. Since the company's 2023 investor day, competitors have announced more than 3.5 billion pounds of additional capacity, primarily in Europe, China, and Brazil, and management expects the industry could add up to 8.6 billion pounds by 2028. This would bring total industry capacity in excess of 44 billion pounds. As such, the global pricing environment has remained pressured, with international markets facing more intense pricing pressure relative to North America. Industry capacity utilization has declined from high-90% levels in 2022-2023 to approximately 90% in 2024, with management projecting further potential deterioration to mid-to-high 80% range in coming years. This substantial capacity build-out, coupled with subdued restaurant traffic (down mid-single digits in February 2025 and low single digits over the last year) and consumer trade-down pressures, is driving heightened competitive intensity across global markets for frozen french fries, particularly in international regions. S&P said, "We expect Lamb's revenue to decline about 1% in fiscal 2025 to $6.4 billion. Additionally, the drag from cash costs associated with the company's restructuring and cost savings program (which we do not add back) have in recent quarters resulted in both gross and S&P Global Ratings-adjusted EBITDA margin compression, resulting in our expectation for a negative 18.5% contraction in EBITDA dollars for fiscal 2025. This leads to leverage at our downgrade trigger of 3.5x." S&P said, "We expect the roll-off of restructuring costs and full realization of $85 million annualized cost savings will likely lead to a rebound in EBITDA margins, albeit we expect top-line pressure to continue. In addition to the $85 million of annual cost savings attributable to the restructuring plan announced in Oct. 2024, Lamb recently hired Alix Partners to assist in evaluating near-and long-term value creation and incremental cost savings opportunities. Our base case contemplates a 0.7% revenue decline in fiscal 2026 (versus our expectations for flat to slightly declining restaurant foot traffic), driven primarily by negative price and mix impact in both North America and International. We expect S&P Global Ratings-adjusted EBITDA to improve in 2026 with margin upside back to 20.0%, due to the realization of the savings and the rolling off of more than $200 million in restructuring costs incurred in fiscal 2025, leading to a decline in leverage to 3.3x in fiscal 2026. "Our baseline forecast for Lamb Weston may face material downside risk due to emerging U.S. tariff policies that could exacerbate an already challenging global frozen potato industry landscape. As it relates to US exports, Lamb disclosed that its manufacturing operations export is in the mid-to-high-teens as a percent of total volume and net sales, making this revenue stream vulnerable to retaliatory tariffs that could significantly impair volumes and pricing power. Furthermore, while their Canadian-produced french fries and Canadian-sourced inputs (approximately 5% of inputs, including edible oils and natural gas) benefit from USMCA exemptions, other global supply chain components could face cost inflation from the baseline 10% tariff. Nevertheless, even modest EBITDA margin compression from global trade tensions could keep leverage elevated above 3.5x for an extended period, increasing the likelihood of a downgrade." Lamb's financial policy is characterized by a growing dividend payout and share repurchases offsetting dilution (albeit recent activity has exceeded dilution opportunistically), but the company's discretionary cash flow (DCF) turned negative during fiscal 2025. S&P said, "That said, we anticipate a rebound in the company's free operating cash flow (FOCF) generation to more than $300 million in fiscal 2026 (primarily driven by lower capital spending), we anticipate the company will have break-even DCF, after our expectation for a more than $200 million deficit in fiscal 2025. The company's strategic plan to decrease capital expenditures by approximately $200 million in fiscal 2026 is a positive step towards improving its cash flow profile, but it remains to be seen whether this reduction will be sufficient to mitigate the impact of declining industry demand and increasing competition, which could likely stall efforts to deleverage." S&P said, "The negative outlook reflects our expectation that Lamb's operating performance and credit metrics will continue to be pressured by a combination of intensifying competition, declining capacity utilization, and potential trade policy risks. However, we expect modest EBITDA improvements leading to leverage in the low-3x area in fiscal 2026 due to the company's cost savings programs. "We could lower the ratings if the company does not improve EBITDA in-line with our forecast or we adopt a less favorable view of the business due to sustained unfavorable industry trends, and the company is unable to restore its credit metrics consistent with the rating." S&P could also lower the rating if it believes the company's leverage will remain above 3.5x. This could occur if: -- Profit deterioration continues, potentially due to its inability to realize planned cost savings, impaired global trade and weaker global macroeconomic conditions, input cost inflation, or structural industry supply-demand imbalance that increases competitive intensity and weakens the company's pricing power; or -- The company transacts larger-than-expected debt-funded share repurchases or acquisitions. S&P could revise the outlook on Lamb to stable if the company: -- Improves EBITDA and reduces and sustains leverage to the low 3x area or below; and -- Successfully executes on its current restructuring program and improving its overall cost position; -- Can navigate difficult industry conditions with stable pricing and maintaining market share. LAVIE CARE: No Decline in Resident Care, PCO Report Says -------------------------------------------------------- Shelby Walker, the patient care ombudsman, filed her report regarding the quality of patient care provided at the Mississippi nursing facilities operated by LaVie Care Centers, LLC's affiliates. The local long-term care ombudsman assigned to oversee the Hilltop Manor Health and Rehabilitation Center reported that the quality of care for residents remains consistent since the last visit. The facility has admitted several new residents, and during the ombudsman's visit, the overall atmosphere was calm, and the facility was clean with no unpleasant odors. No complaints were raised by the residents during this visit. Overall, the facility is operating smoothly, with no current problems or concerns. During a recent visit, the local long-term care ombudsman assigned to monitor the Courtyard Rehabilitation and Healthcare facility observed a noticeable improvement in cleanliness, with the facility maintained to a higher standard than in previous assessments. There were no complaints regarding the quality of food, and some residents even remarked that the food had improved in taste since the new administrator's arrival. The local long-term care ombudsman assigned to oversee Oaks Rehabilitation and Healthcare Center reported that the overall quality of care for residents remains consistent. However, concerns were raised regarding the condition of the facility's floors, which were noted to have potential for improvement. Specifically, the hallway and residents' room floors appeared to have not been swept or mopped for some time. The local long-term care ombudsman assigned to oversee Starkville Manor Health Care and Rehabilitation Center reported that the quality of care for the residents remains satisfactory. The facility remains in full compliance with its corrective action plan. The facility continues to operate smoothly, with no further concerns raised, and no complaints have been reported to the local ombudsman. The local long-term care ombudsman assigned to oversee Winona Manor Health Care and Rehabilitation Center reported that the quality of care for residents remains satisfactory. The ombudsman noted that all residents are receiving appropriate care, staffing levels at the facility are adequate, and there are no issues regarding the availability of supplies for residents. At this time, no problems or complaints have been identified with the facility. The local long-term care ombudsman assigned to oversee the Glenburney Health Care and Rehabilitation Center has reported ongoing concerns regarding the quality of care provided to the facility's residents. These concerns include the need for essential repairs and improvements to housekeeping practices. Reports indicate that housekeeping standards are below acceptable levels, with dirty floors, trash in residents' rooms, and a persistent unpleasant odor throughout the facility. Additionally, concerns have been raised regarding the adequacy of food provided to residents at the facility. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=92zrEZ from Kurtzman Carson Consultants, LLC, claims agent. About Lavie Care Centers LaVie Care Centers, LLC, is the parent company of skilled nursing facility operators and providers, with facilities primarily located in Mississippi, North Carolina, Pennsylvania and Virginia. The company operates 43 licensed facilities, with 4,300 beds, providing short-term rehabilitation, comprehensive post-acute care, and long-term care to its residents. On June 2 and 3, 2024, LaVie Care Centers and 281 affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 24-55507), before Judge Paul Baisier in Atlanta. The Debtors tapped McDermott Will & Emery, LLP as legal counsel; Stout Capital, LLC as investment banker; and Ankura Consulting as financial advisor. M. Benjamin Jones, senior managing director at Ankura, serves as the Debtors' chief restructuring officer. Kurtzman Carson Consultants, LLC is the claims agent, and maintains the page http://www.kccllc.com/LaVie The U.S. Trustee for Region 21 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The U.S. Trustee also appointed Joani Latimer as patient care ombudsman for patients at the Debtors' Virginia facilities; Victor Orija for North Carolina facilities; Lisa Smith for the Mississippi facilities; Margaret Barajas for the Pennsylvania facilities; and Terri Cantrell for the Florida facility. Margaret Barajas is the patient care ombudsman appointed in the Debtors' cases. LEFEVER MATTSON: Court OKs Deal to Use Nationstar's Cash Collateral ------------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California approved a stipulation entered into by LeFever Mattson and Valley Oak Investments, LP with Nationstar Mortgage LLC, the companies' secured lender. The stipulation authorizes the companies to use the lender's cash collateral to fund the continued operations of their real properties. The properties secure the loan obtained from Nationstar Mortgage. Under the stipulation, the companies are authorized to use cash collateral for the period from Nov. 1, 2024, until the occurrence of so-called termination events, which include the dismissal or conversion of their Chapter 11 cases and the appointment of a Chapter 11 or 7 trustee. Nationstar Mortgage will be granted a replacement lien on the properties to secure the diminution in the value of its collateral. About LeFever Mattson LeFever Mattson, a California corporation, manages a large real estate portfolio. Timothy LeFever and Kenneth W. Mattson each owns 50% of the equity in the company. Based in Citrus Heights, Calif., LeFever Mattson manages a portfolio of more than 200 properties, comprised of commercial, residential, office, and mixed-use real estate, as well as vacant land, located throughout Northern California, primarily in Sonoma, Sacramento, and Solano Counties. It generates income from the properties through rents and use the proceeds to fund its operations. LeFever Mattson and its affiliates filed voluntary Chapter 11 petitions (Bankr. N.D. Calif. Lead Case No. 24-10545) on September 12, 2024. At the time of the filing, LeFever Mattson listed $100 million to $500 million in assets and $10 million to $50 million in liabilities. Judge Charles Novack oversees the cases. Thomas B. Rupp, Esq., at Keller Benvenutti Kim LLP represents the Debtors as counsel. Kurtzman Carson Consultants, LLC is the Debtors' claims and noticing agent. The U.S. Trustee for Region 17 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. LINDO HOLDINGS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Lindo Holdings LLC 236 South Curtis Avenue #B Alhambra CA 91801 Business Description: Lindo Holdings holds ownership of the property situated at 236 S. Curtis Avenue in Alhambra, California 91030, with an estimated worth of approximately $2.6 million. Chapter 11 Petition Date: April 15, 2025 Court: United States Bankruptcy Court Central District of California Case No.: 25-13059 Judge: Hon. Deborah J Saltzman Debtor's Counsel: Marc Aaron Goldbach, Esq. GOLDBACH LAW GROUP 111 West Ocean Blvd., Suite 400 Long Beach CA 90802 Tel: 562-696-0582 E-mail: marc.goldbach@goldbachlaw.com Total Assets: $2,600,061 Total Liabilities: $1,500,738 Allen Liu signed the petition in his capacity as managing member. The Debtor indicated in the petition there are no unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/ZIH7C3A/Lindo_Holdings_LLC__cacbke-25-13059__0001.0.pdf?mcid=tGE4TAMA LUXURY TIME: Hires C. Stephen Gurdin Jr. as Legal Counsel --------------------------------------------------------- Luxury Time Global, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Pennsylvania to employ C. Stephen Gurdin Jr., Esq., a professional practicing law in Pennsylvania, to handle its Chapter 11 case. Mr. Gurdin will charge an hourly fee of $460. The paralegal assisting him will charge $150 per hour. The Debtor paid Mr. Gurdin a retainer of $15,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Gurdin disclosed in a court filing that he has no other interest or connection in the administration of the Debtor's bankruptcy estate. Mr. Gurdin maintains an office at: C. Stephen Gurdin Jr., Esq. 67-69 Public Square, Ste. 501 Wilkes Barre, PA 18701-2512 Tel: (570) 826-0481 Email: Stephen@gurdinlaw.com About Luxury Time Global, LLC Luxury Time Global LLC, d/b/a Luxury Time Global, is a retailer specializing in luxury watches, offering both new and pre-owned timepieces from world-renowned brands like Rolex, Omega, and Patek Philippe. With established offices in Florida and Pennsylvania, as well as an online store, the Company serves watch enthusiasts, celebrities, and athletes. Luxury Time Global LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Pa. Case No. 25-00912) on April 2, 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 Mark J. Conway handles the case. The Debtor is represented by C. Stephen Gurdin, Jr., Esq. MAJESTICS MOTORS: Hires Law Office of Barry R. Levine as Counsel ---------------------------------------------------------------- Majestics Motors, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Massachusetts to employ the Law Office of Barry R. Levine as counsel. The firm will perform all the services necessary and desirable in a Chapter 11 proceeding. The firm will be paid at the rate of $500 per hour. The firm received from the Debtor a retainer of $7,500. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Barry Levine, Esq., a partner at Law Office of Barry R. Levine, 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: Barry Levine, Esq. Law Office of Barry R. Levine 100 Cummings Center, Suite 327G Beverly, MA 01915-6123 Tel: (978) 922-8440 Fax: (978) 998-4636 Email: barrv@levineslaw.com About Majestics Motors, Inc. Majestics Motors, Inc., filed a Chapter 11 bankruptcy petition (Bankr. D. Mass. Case No. 25-10654) on April 01, 2025. The Debtor hires the Law Office of Barry R. Levine as counsel. MAJORDRIVE HOLDINGS: Moody's Alters Outlook on 'B3' CFR to Negative ------------------------------------------------------------------- Moody's Ratings affirmed MajorDrive Holdings IV, LLC's ("Club Car") B3 corporate family rating and B3-PD probability of default rating. Concurrently, Moody's affirmed the B2 ratings on the senior secured term loans and the Caa2 rating on the senior unsecured notes. The outlook was changed to negative from stable. The change in outlook to negative reflects Moody's expectations that leverage will remain very high over the next 12-18 months. Moody's expect modest earnings growth and free cash flow with which to reduce leverage. However, an uncertain economic environment, tariff impacts, and timing of demand recovery in the consumer segment could pose potential headwinds to the pace of deleveraging and weaken credit metrics. Separately, Club Car's ABL facility will become current in June 2025 and limit financial flexibility if it is not refinanced. RATINGS RATIONALE The B3 CFR reflects high financial leverage, modest scale and an aggressive financial policy. As of December 2024, Club Car had limited financial flexibility with adjusted debt/EBITDA above 8x. Moody's recognizes the negative impacts of higher interest rates, inflation, and increased competition on the company's business in 2024, resulting in higher leverage. Moody's believes management has taken appropriate actions, along with various anti-competitive tariffs and duties introduced by US government agencies, which should improve the company's competitiveness going forward. Moody's also recognizes Club Car's strong standing in the niche low-speed vehicle market, which helps to partially mitigate risks associated with its product and end-market concentration. The negative outlook reflects Club Car's vulnerability to economic downturns, particularly in its consumer segment, and its exposure to global supply chains and markets. Headwinds from slower consumer demand recovery, increased import costs or export difficulties would challenge the pace of delevering in 2025. Moody's expects modest earnings growth in 2025 and slightly positive free cash over the next 12-18 months. Moody's expects Club Car to operate with adequate liquidity over the next 12-18 months. Amortization on term loan debt is manageable at around $9 million per annum. Moody's anticipates slightly positive free cash flow in 2025. External liquidity is provided by a $150 million asset-backed revolving credit facility that expires in June 2026. The ABL revolver will become current in June 2025 and limit financial flexibility if it is not refinanced. The revolver contains a springing fixed charge coverage ratio of 1.1x, that comes into effect if availability drops below the greater of 10% of revolver commitments or $7.5 million. Moody's do not expect this covenant to come into effect. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be downgraded if debt/EBITDA does not decline towards 7x, EBITDA margin remains around or below 10%, or if liquidity weakens such that free cash flow is negative. A persistent weakening in demand for Club Car vehicles or a large debt-financed shareholder distribution could also result in a downgrade. Ratings could be upgraded if debt/EBITDA is sustained below 6x. Any upgrade would require ample liquidity with FCF-to-debt consistently in the mid-single-digits. Maintenance of solid market positions and EBITDA margin consistently near 20% could exert upward rating pressure. Headquartered in Augusta, Georgia, Club Car is a manufacturer of golf carts and other low-speed vehicles and related aftermarket parts and services. The principal methodology used in these ratings was Manufacturing published in September 2021. MAWSON INFRASTRUCTURE: Inks Digital Colocation Deal With Canaan --------------------------------------------------------------- Mawson Infrastructure Group Inc. announced that it has signed a significant new digital colocation customer agreement with Canaan Inc., a NASDAQ-listed publicly traded company (NASDAQ: CAN), further growing and expanding its digital colocation business with latest-generation application-specific integrated circuit machines (ASICs). The new customer colocation agreement executed between Mawson's President and CEO Rahul Mewawalla and Canaan's Chairman and CEO Nangeng Zhang on March 21, 2025 is for Mawson to provide Canaan with digital colocation services for about 17,453 latest-generation ASICs at Mawson's facilities. The initial agreement term is for three years, and the parties can extend upon mutual agreement. The contract also provides for future potential capacity expansion. Rahul Mewawalla, Mawson CEO and President, stated, "We recently announced that we grew our digital colocation business revenue 136% year-on-year. We are now pleased to sign and welcome Canaan as our newest enterprise-grade customer. I am delighted to announce this new long-term digital colocation customer agreement, further driving growth of our digital colocation services business. This aligns well with our strategy of optimizing our digital infrastructure and compute management capabilities working with latest-generation machines. By combining Mawson's digital infrastructure innovation and Canaan's latest hardware innovation, we're creating a strategic relationship that we expect will benefit both companies and the overall ecosystem." Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, commented, "This agreement between Canaan and Mawson combines Mawson's digital infrastructure and operational excellence with Canaan's next-generation mining hardware to create an innovative, scalable foundation that provides the flexibility for additional opportunities. Together, we're building a partnership that we believe will drive value and create opportunities for sustainable growth for both companies." The executed customer agreement, entered into by wholly owned subsidiaries of Canaan Inc. and Mawson Infrastructure Group Inc., is for approximately 64 MW of compute capacity at Mawson's facilities. This further strengthens Mawson's position as a leading industry provider of digital infrastructure and digital colocation services in the attractive PJM market, one of North America's largest competitive and deregulated wholesale energy markets. Upon completion of this deployment, Mawson expects to operate and manage approximately 5.51 exahash per second (EH/s) in combined total current operating hashrate across its facilities. Mawson also has an additional site in Ohio under development which is expected to add an initial 24 MW to the Company's currently operating 129 MW across its facilities, growing the Company's total operating capacity to 153 MW upon completion, potentially further expanding the total hashrate. About Mawson Infrastructure Group Mawson Infrastructure Group specializes in data centers for Bitcoin miners and AI firms. Mawson Infrastructure Group's creditors filed a Chapter 11 involuntary petition against the company (Bankr. D. Del. Case No. 24-12726) on December 4, 2024. The petitioning creditors include W Capital Advisors Pty Ltd, Marshall Investments MIG Pty Ltd, and Rayra Pty Ltd. The petitioners' counsel is Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell. Judge Mary F. Walrath handles the case. MONTEREY CAPITOLA: Unsecureds to Get 100 Cents on Dollar in Plan ---------------------------------------------------------------- Monterey Capitola, LLC, filed with the U.S. Bankruptcy Court for the Northern District of California a Plan of Reorganization for Small Business under Subchapter V dated March 17, 2025. The Debtor is a limited liability company. Since the 1990's, the Debtor has been in the business of renting real estate. The Debtor's only assets are two single-family homes which are rented for a total of $8,075. One is located at 309 Escalona Drive, Capitola, California ("Escalona") and the other at 107 Central Avenue, Capitola, California ("Central"). Escalona is encumbered by delinquent property taxes and first and second deeds of trust. Central is free and clear except for delinquent property taxes. Escalona is encumbered by delinquent property taxes and first and second deeds of trust. The Disputed Creditor refused to reconvey the subject deed of trust which prevented the Debtor from refinancing Escalona and obtaining the funds to make payments on the promissory note the second deed of trust secures causing a default. The Disputed Creditor scheduled a trustee's sale for December 17, 2024. The Debtor filed this case to stop the foreclosure on Escalona. The Debtor's financial projections show that the Debtor will have projected disposable income of $23,052 per year. The final Plan payment is expected to be paid on December, 2029, which is anticipated to be four and one-half months after the effective date. 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, consistent with the liquidation analysis and projected disposable income. This Plan also provides for the payment of administrative and priority claims. Class 3 consists of Non-priority unsecured creditors. Class 3 is impaired. The Debtor will pay this class of claims in full on the Effective Date. The Debtor's member shall retain his interest with his legal and equitable rights unaltered by the Plan. The Debtor will make the payments required under the Plan from the net rents. Steven M. Davis will remain as sole member and manager of the Debtor. A full-text copy of the Plan of Reorganization dated March 17, 2025 is available at https://urlcurt.com/u?l=F6h4Dz from PacerMonitor.com at no charge. Counsel to the Debtor: Joan Marie Chipser, Esq. 1 Green Hills Ct. Millbrae, CA 94030 Telephone: (650) 697-1564 Facsimile: (650) 873-2858 Email: joanchipser@sbcglobal.net About Monterey Capitola LLC Monterey Capitola, LLC is a California-based company primarily engaged in renting and leasing real estate properties. Monterey Capitola sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-51916) on Dec. 17, 2024, with $1 million to $10 million in both assets and liabilities. Gina Klump, Esq., at the Law Office of Gina R. Klump, serves as Subchapter V trustee. Judge M. Elaine Hammond handles the case. The Debtor is represented by Joan M. Chipser, Esq., at the Law Offices of Joan M. Chipser. MULTI ENTERPRISES: Hires Brian K. McMahon PA as Counsel ------------------------------------------------------- Multi Enterprises, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Brian K. McMahon PA as counsel. The firm will render 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; and (e) represent the Debtor in negotiation with its creditors in the preparation of a plan. Brian McMahon, Esq., the primary attorney in this representation, will be paid at his hourly rate of $450. The Debtor will pay the firm $1,500 per month. In addition, the firm will seek reimbursement for expenses incurred. Mr. McMahon 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 K. McMahon, Esq. Brian K. McMahon, PA 1401 Forum Way, Suite 730 West Palm Beach, FL 33401 Tel: (561) 478-2500 Fax: (561) 478-3111 Email: briankmcmahon@gmail.com About Multi Enterprises, Inc. Multi Enterprises, Inc., filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 25-12526) on March 9, 2025. The Debtor hires Brian K. McMahon PA as counsel. NEW DIRECTION: Unsecureds Will Get 43% of Claims over 60 Months --------------------------------------------------------------- New Direction Home Health Care of DFW Inc. filed with the U.S. Bankruptcy Court for the Northern District of Texas a Plan of Reorganization under Subchapter V dated March 17, 2025. The Debtor's business consists of two separate business models operated within one business entity. One portion of that business provides personalized and compassionate home health care services, while the other portion of the business operates a restaurant franchise (namely a Dickey's BBQ Pit). The business operates at locations in Arlington, Texas and Grand Prairie, Texas, respectively. The Debtor filed this case due to an inability to service debt obligations resulting from multiple high interest Merchant Cash Advance (MCA) loans and debt consolidation service that provided little to no debt relief, all of which were predicated by the economic effects of COVID-19 on the two business models. The high interest rates coupled with the very short term payment schedules siphoned large amounts of operating funds from the business weekly rather than monthly that served only to address interest but little to no principal pay down. The Debtor scheduled a Secured Claim for Educational Employees Credit Union for $15,000.00. Integrity Texas Funding, LP filed a Secured Claim for $10,000.00. ARF Financial, LLC filed a claim, the Secured portion of which is $69,039.44. The Debtor scheduled total non-priority Unsecured Claims of $698,828.77. Under this Plan, all Priority and Secured Creditors will receive payment of 100% of their Allowed Claims, and Unsecured Creditors will receive 43% of their Allowed Claims. Therefore, pursuant to the above liquidation analysis all Creditors will receive at least as much under this Plan as they would in a Chapter 7 liquidation. Class 4 consists of Allowed General Unsecured Claims. This Class shall be paid pro-rata $5,000.00 monthly on a pro-rata basis over 60 months from the Effective Date, without interest. These Claims will be paid in equal monthly installments commencing on the first day of the first month following the Effective Date and continuing on the first day of each month thereafter. These Claims are Impaired, and the holders of these Claims are entitled to vote to accept or reject the Plan. Class 5 Equity Interests shall be retained. The Debtor intends to make all payments required under the Plan from available cash and income from the business operations of the Debtor. A full-text copy of the Plan of Reorganization dated March 17, 2025 is available at https://urlcurt.com/u?l=0NRJAy from PacerMonitor.com at no charge. The firm can be reached at: Joyce W. Lindauer, Esq. Joyce W. Lindauer Attorney, PLLC 1412 Main Street, Suite 500 Dallas, TX 75202 Tel: (972) 503-4033 Fax: (972) 503-4034 Email: joyce@joycelindauer.com About New Direction Home Health Care of DFW New Direction Home Health Care of DFW, Inc. provides personalized and compassionate home health care services. New Direction sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 24-44654) on December 17, 2024, with $50,001 to $100,000 in assets and $500,001 to $1 million in liabilities. Chiketa Kelly Williams, administrator, signed the petition. Judge Mark X. Mullin oversees the case. Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC, is the Debtor's bankruptcy counsel. NEWELL BRANDS: Moody's Cuts CFR to 'Ba3', Outlook Negative ---------------------------------------------------------- Moody's Ratings downgraded Newell Brands Inc.'s ("Newell") ratings including its Corporate Family Rating to Ba3 from Ba2, its Probability of Default Rating to Ba3-PD from Ba2-PD, its senior unsecured debt instrument ratings to B1 from Ba3, and its senior unsecured medium term notes program ratings to (P)B1 from (P)Ba3. The commercial paper rating was affirmed at NP (not prime). The outlook remains negative, and the speculative grade liquidity rating ("SGL") was downgraded to SGL-4 from SGL-3. The downgrade reflects continued pressure on Newell's business driven by persistently weak consumer demand and Moody's expectations of a negative impact from US tariffs, which Moody's projects will complicate the company's ability to deleverage. Although Newell manufactures approximately half of its products in the US and sources only about 15% from China, Moody's estimates that the negative impact from tariffs, along with their broader effect on the US consumer sector, will continue to negatively impact consumer spending patterns for discretionary products such as durable goods. Newell's larger manufacturing footprint in the US compared to some of its competitors provides it with a competitive advantage and declines in the cost of some inputs, such as oil, gas, and plastic may provide a partial mitigant. However, the company's ability to implement pricing actions to improve margins will be limited given the discretionary nature of most of its products and weaker consumer demand. The persistently weak environment continues to burden consumers, leading to reduced purchases of discretionary products such as home fragrance, food storage, small appliances, cookware, and recreational goods. Downside risks remain that a prolonged weak environment from tariffs could put additional pressure on consumers and delay recovery well into 2026. Additionally, Newell will likely face higher borrowing costs as it seeks to refinance its significant upcoming debt maturities. Higher borrowing costs and the roughly $118 million dividend will negatively impact free cash flow and delay the improvement needed in Newell's credit metrics and its ability to materially reduce financial leverage. Over the next 12 months, Moody's expects that Newell's free cash flows -after the payment of dividends- will be slightly negative factoring in the potential for higher interest costs from refinancing and weaker consumer demand. The company continues to execute its new strategy on its top 25 brands to improving margins but the magnitude of such gains could be muted by weak consumer confidence, challenges to take pricing, and potential high tariff headwinds. Moody's expects financial leverage as measured by Moody's debt-to-EBITDA will remain high at around 5.5x by the end of 2026 from 6.2x as of December 31, 2024. Prolonged or weaker demand, higher tariffs or poor execution of the company's brand strategy could curtail the rapid deleveraging needed to maintain the current ratings. The downgrade to SGL-4 reflects Newell's weak liquidity reflecting upcoming maturities consisting of approximately $47 million outstanding on the 3.9% notes maturing November 2025 and $1.235 billion remaining outstanding on the 4.2% notes maturing April 2026. Further Moody's expects free cash flow to be slightly negative over the next 12 months and some seasonality in the business during the first two quarters. Sources of liquidity to support these maturities and seasonality are tight and consist of $198 million of cash as of December 31, 2024, and approximately $925 million of availability under the $1.0 billion asset-based revolver due August 2027 (after taking into account $40 million outstandings and $35 million of issued LCs). Newell also has an accounts receivable facility expiring in October 2026 which provides additional liquidity of up to $225 million between February and April of each year and up to $275 million at all other times. As of December 31, 2024, the company had availability of approximately $130 million under this facility ($145 million outstanding). Newell is thus reliant on raising new capital to address the maturities in a more uncertain credit market. Interest costs will likely be at higher levels to address the maturities, which will weaken free cash flow. RATINGS RATIONALE Newell's Ba3 CFR reflects its large scale, well recognized brands, and good product and geographic diversity. The rating is constrained by concerns around the long-term growth prospects of the company's mature product categories such as small appliances and cookware, food storage, and writing that require constant investment and innovation to spur growth and retain market share. The rating also reflects the cyclicality and discretionary nature of some of its products that are negatively impacted during the current weak environment. The dividend payment constraints Newell's financial flexibility, especially during economic weakness, because it weakens free cash flow at a time when financial leverage remains high. Debt-to-EBITDA leverage of 6.2x as of December 31, 2024 is high and currently elevated for the rating. Moody's expects leverage to decline modestly over the next two years as it realizes cost savings from its strategic initiatives but there is risk of leverage increasing if consumer confidence and demand is weak. Newell's 2.5x net debt-to-EBITDA leverage target (based on the company's calculation) is well below the current 5.2x level as of December 31, 2024 and indicates management's desire to reduce leverage meaningfully. The Ba3 rating is based on Moody's views that Moody's adjusted gross leverage will continue to decline to around 5.5x over the next 12-18 months as the company executes its strategies to improve operating efficiency and margins. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The negative outlook reflects risks that leverage could remain elevated over the next 12 to 18 months due to weak consumer demand for discretionary goods, and the execution risk and time necessary to realize benefits from the company's strategies to improve operating efficiency and margins. The outlook also reflects outsized risks on consumer spending patterns that could be affected by tariffs. Ratings could be upgraded if Newell demonstrates good operating execution of its strategic initiatives leads to sustained organic revenue growth with the EBITDA margin recovering at least to the low-to-mid-teens percent range. The company would also need to maintain a financial policy that results in debt to EBITDA leverage sustained comfortably below 5.0x and will need to improve liquidity and generate solid free cash flow relative to debt, while demonstrating a consistent strategic direction towards deleveraging. Ratings could be downgraded if Newell's revenue or EBITDA margin do not improve materially, liquidity does not improve, or the company is not able to generate comfortably positive free cash flow. Additionally, the ratings could be downgraded if Newell's debt-to-EBITDA is sustained above 5.5x. The principal methodology used in these ratings was Consumer Durables published in September 2021. Newell Brands Inc. is a global marketer of consumer and commercial products utilized in the home, office, and commercial segments. Key brands include Rubbermaid, Graco, Oster, Coleman, Sharpie, Mr. Coffee and Yankee Candle. The publicly-traded company generated $7.6 billion of revenue in 2024. NIKOLA CORP: Lucid Group to Buy Arizona Assets Post-Bankruptcy -------------------------------------------------------------- Lucid Group, Inc. (Nasdaq: LCID), maker of the world's most advanced electric vehicles, announced on April 11, 2025, that it has reached an agreement to acquire select facilities and assets in Arizona previously belonging to Nikola Corporation, subject to approval by the U.S. Bankruptcy Court for the District of Delaware. The transaction does not include the acquisition of Nikola's business, customer base, or technology related to Nikola's hydrogen fuel cell electric trucks. Additionally, Lucid plans to offer employment to more than 300 former Nikola employees in roles across Lucid's Arizona facilities. These offers will encompass various technical salaried and hourly positions including manufacturing engineering, software, assembly, vehicle testing, and warehouse support as Lucid welcomes employees with strong backgrounds in EV technology and further supports its local community. As part of the agreement, Lucid will take over Nikola's former Coolidge manufacturing facility (680 E Houser Rd, Coolidge, AZ), as well as the Phoenix facility (4141 E Broadway Rd, Phoenix, AZ) previously used as Nikola's headquarters and product development center. These buildings collectively add more than 884,000 square feet to Lucid's Arizona footprint. Most of this space is comprised of state-of-the-art manufacturing and warehousing buildings, which executes against Lucid's prior planned expansion in Arizona. These facilities also include development equipment with extensive battery and environmental testing chambers, a full-size chassis dynamometer, machining equipment, and more. Lucid's agreement to acquire the aforementioned assets follows Nikola's bankruptcy auction which concluded on April 10, 2025, as part of its filing for Chapter 11 bankruptcy relief. "As we continue our production ramp of Lucid Gravity and prepare for our upcoming midsize platform vehicles, acquiring these assets is an opportunity to strategically expand our manufacturing, warehousing, testing, and development facilities while supporting our local Arizona community," said Marc Winterhoff, Interim CEO at Lucid. "We are delighted to extend employment offers to more than 300 former employees, who bring valuable industry experience, and together with our outstanding teams, will continue powering Lucid's industry-leading innovation." "Today's announcement is fantastic news for Arizona workers and our state's growing EV and battery manufacturing industry," said Arizona Governor Katie Hobbs. "Arizona is the proud home of Lucid's advanced EV manufacturing lines -- and this acquisition promises to strengthen Lucid's operations while offering continued employment to hundreds of skilled workers in our state." "I am honored to work with the local Lucid team to support the asset acquisition efforts of Nikola Corporation in my hometown of Coolidge," said Arizona state Senator T.J. Shope. "This investment will be instrumental in helping those impacted by job loss to regain employment by Lucid and further solidify Lucid's commitment to growth in Pinal County and our state, by utilizing the Coolidge facility for Lucid manufacturing operations." About Lucid Group Lucid (NASDAQ: LCID) is a Silicon Valley-based technology company focused on creating the most advanced EVs in the world. The award-winning Lucid Air and new Lucid Gravity deliver best-in-class performance, sophisticated design, expansive interior space and unrivaled energy efficiency. Lucid assembles both vehicles in its state-of-the-art, vertically integrated factory in Arizona. Through its industry-leading technology and innovations, Lucid is advancing the state-of-the-art of EV technology for the benefit of all. 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. OFFICE PROPERTIES: Fails to Meet Nasdaq's Bid Price Rule -------------------------------------------------------- Office Properties Income Trust disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it received a notification letter from The Nasdaq Stock Market LLC, or Nasdaq, informing the Company that, for at least 30 consecutive business days prior to March 25, 2025, the bid price of its common shares of beneficial interest, $.01 par value per share, or common shares, had closed below $1.00 per common share, which is the minimum required closing bid price for continued listing on Nasdaq pursuant to Listing Rule 5450(a)(1). Under Nasdaq Listing Rule 5810(c)(3)(A), Office Properties has a 180-calendar day grace period, or until September 22, 2025, to regain compliance with the minimum bid price continued listing standard. To regain compliance, the closing bid price of its common shares must meet or exceed $1.00 per common share for a minimum of 10 consecutive business days during the 180-calendar day grace period. If the Company is not in compliance by September 22, 2025, it may be afforded a second 180 calendar day grace period. To qualify for this additional time, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq with the exception of the minimum bid price requirement. If it does not regain compliance within the allotted period(s), including any extensions that it may receive, Nasdaq will provide notice that the Company's common shares will be subject to delisting. Office Properties is monitoring the bid price of its common shares and are considering options available to the Company to achieve compliance with the minimum bid price continued listing standard. 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-'. OPTINOSE INC: Registers 402,336 Additional Shares Under 2010 Plan ----------------------------------------------------------------- OptiNose, Inc. filed a Registration Statement on Form S-8 with the U.S. Securities and Exchange Commission for the purpose of registering an additional 402,336 shares of common stock, par value $0.001 per share of OptiNose, Inc., issuable pursuant to the OptiNose, Inc. Amended and Restated 2010 Stock Incentive Plan. These additional shares of common stock have become reserved for issuance as a result of the operation of the "evergreen" provision in the 2010 Plan, which provides that the total number of shares subject to such plan will be increased on the first day of each fiscal year pursuant to a specified formula or will be increased to such lesser total number of shares as may be determined by the Board with respect to the 2010 Plan. The Registration Statement is also being filed for the purpose of registering shares of Common Stock issuable upon the vesting and settlement of restricted stock unit awards and the exercise of nonqualified stock option awards granted to employees of the Company to induce each such individual to accept employment with the Company. The Inducement Awards were granted as: * award of 10,000 RSUs granted to an executive officer of the Company on October 7, 2024; * nonqualified stock option awards to purchase 48,830 shares of Common Stock granted on October 7, 2024; and * nonqualified stock option award to purchase 8,499 shares of Common Stock granted on October 14, 2024; The Inducement Awards were approved pursuant to delegated authority by the Company's Compensation Committee of the Board of Directors in compliance with and in reliance on Nasdaq Listing Rule 5635(c)(4). The Inducement Awards were granted outside of the 2010 Plan. A full-text copy of the Registration Statement is available at: https://tinyurl.com/4sed38f6 About OptiNose, Inc. OptiNose, Inc. -- www.optinose.com -- is a specialty pharmaceutical company based in Yardley, Pennsylvania, focused on developing and commercializing products for patients treated by ear, nose and throat (ENT) and allergy specialists. The Company's first product, XHANCE (fluticasone propionate) nasal spray, utilizes its proprietary Exhalation Delivery System (EDS) to treat chronic rhinosinusitis, including cases with and without nasal polyps. XHANCE delivers medication to deeper, hard-to-reach areas of the nasal passages, offering a potential improvement over conventional intranasal steroids. Optinose also aims for XHANCE to become a standard maintenance therapy following sinus surgery to enhance patient outcomes. Philadelphia. Pa.-based Ernst & Young LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated Mar. 26, 2025, attached in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has suffered recurring losses from operations, has a working capital deficiency and expects to not be in compliance with certain debt covenants, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $128.8 million in total assets, $169.1 million in total liabilities, and a total stockholders' deficit of $40.4 million. OPTINOSE INC: Reports $21.5 Million Net Loss in 2024 ---------------------------------------------------- OptiNose, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $21.5 million on $78.2 million of total revenues for the year ended Dec. 31, 2024, compared to a net loss of $35.5 million on $71 million of total revenues for the year ended Dec. 31, 2023. Philadelphia. Pa.-based Ernst & Young LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated Mar. 26, 2025, citing that the Company has suffered recurring losses from operations, has a working capital deficiency and expects to not be in compliance with certain debt covenants, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. OptiNose said, "We have identified conditions and events that raise substantial doubt about our ability to continue as a going concern." "As of December 31, 2024, we had cash and cash equivalents of $84.5 million and $130million of outstanding Pharmakon Senior Secured Notes under the A&R Note Purchase Agreement. Our accumulated deficit as of December 31, 2024 was $741.9 million. We have incurred significant net losses since inception and also expect to incur substantial losses in future periods." "Our continuation as a going concern is dependent on our ability to maintain compliance with the financial covenants (including the requirement for us to achieve certain minimum trailing twelve-month consolidated XHANCE net sales and royalties thresholds, the requirement for us to maintain at least $30million of cash and cash equivalents at all times (reduced to $20million following the date of the first quarterly payment of principal due on September 30, 2025) and the requirement that commencing with our financial statements for the fiscal year ending December 31, 2025 that our annual and quarterly financial statements not be subject to any qualification or statement as to "going concern"), and the other provisions under the A&R Note Purchase Agreement, and our ability to generate sufficient cash flows from operations to meet our debt service obligations and to fund our operations and/or obtain additional capital through equity or debt financings, partnerships, collaborations, or other sources." "The A&R Note Purchase Agreement includes a requirement that we achieve certain minimum trailing twelve-month consolidated XHANCE net sales and royalties thresholds through maturity. We believe it is probable that we will not maintain compliance with the trailing twelve-month minimum consolidated XHANCE net sales and royalties thresholds for the entire one year period after the filing of this Annual Report on Form 10-K. If we fail to achieve a minimum consolidated XHANCE net sales and royalties threshold, it will constitute a default under the A&R Note Purchase Agreement if we are unable to obtain a modification or waiver of such minimum consolidated XHANCE net sales and royalties threshold." "The A&R Note Purchase Agreement also requires us to maintain at all times a minimum of $30million of cash and cash equivalents, which will be reduced to $20million following the date of the first quarterly payment of principal due on September 30, 2025 (referred to as, the "liquidity covenant"). If we are unable to secure additional capital through equity or debt financings, partnerships, collaborations, or other sources, we believe that it is probable that we will not be able to maintain compliance with the liquidity covenant under the A&R Note Purchase Agreement beginning in the first quarter of 2026, which will also constitute a default under the A&R Note Purchase Agreement if we are unable to obtain a waiver or modification of such liquidity covenant." "Further, the A&R Note Purchase Agreement includes a requirement that commencing with the report and opinion on our consolidated financial statements commencing with our financial statements for the fiscal year ending December 31, 2025 that all of our quarterly and annual financial statements, not be subject to any statement or qualification as to "going concern" (referred to as, the "going concern covenant"). As a general matter, financial statements are subject to a "going concern" uncertainty disclosure if it is probable that the company's available capital is not sufficient to fund its operations and obligations for at least twelve months following the issuance of such financial statements including obligations that could become due during such twelve month period as a result of some future event (for instance, the potential that the Pharmakon Senior Secured Notes could become due if it is deemed probable that we will not maintain compliance with the covenants and other terms under the A&R Note Purchase Agreement during such twelve month period). If we are unable to secure additional capital through equity or debt financings, partnerships, collaborations, or other sources, we believe it is unlikely that we will be able comply with the going concern covenant commencing with our financial statements for the fiscal year ending December 31, 2025, which will constitute a default under the A&R Note Purchase Agreement if we are unable to obtain a modification or waiver of such going concern covenant." "In the event of any of the foregoing defaults, the holders of the Pharmakon Senior Secured Notes may declare an event of default under the A&R Note Purchase Agreement and may elect to accelerate the repayment of all unpaid principal, accrued interest and other amounts due (which would also require us to pay an interest make-whole premium as specified in the A&R Note Purchase Agreement if the repayment of the debt is accelerated prior to May 21, 2026), which may require us to delay or curtail our operations until we obtain additional capital which may not be available on a timely basis, on favorable terms, or at all, and such capital, if obtained, may not be sufficient to meet our payment obligations or enable us to continue to implement our long-term business strategy. In such an event, our business, prospects, financial condition and results of operations will be materially and adversely affected, and we may be unable to continue as a going concern. These factors raise substantial doubt about our ability to continue as a going concern. If we are unable to continue as a going concern, we may have to liquidate our assets and may receive less than the fair value for such assets or less than the value at which those assets are carried on our financial statements, and it is likely that investors will lose all or a part of their investment. Additionally, if we seek additional financing to fund our debt service obligations and business activities in the future and there remains substantial doubt about our ability to continue as a going concern, investors or other financing sources may be unwilling to provide funding to us on commercially reasonable terms, if at all." A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/42undv83 About OptiNose, Inc. OptiNose, Inc. -- www.optinose.com -- is a specialty pharmaceutical company based in Yardley, Pennsylvania, focused on developing and commercializing products for patients treated by ear, nose and throat (ENT) and allergy specialists. The Company's first product, XHANCE (fluticasone propionate) nasal spray, utilizes its proprietary Exhalation Delivery System (EDS) to treat chronic rhinosinusitis, including cases with and without nasal polyps. XHANCE delivers medication to deeper, hard-to-reach areas of the nasal passages, offering a potential improvement over conventional intranasal steroids. Optinose also aims for XHANCE to become a standard maintenance therapy following sinus surgery to enhance patient outcomes. As of Dec. 31, 2024, the Company had $128.8 million in total assets, $169.1 million in total liabilities, and a total stockholders' deficit of $40.4 million. ORB TERTIUS: Court OKs Deal to Use Cash Collateral Until April 30 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California, Los Angeles Division approved a stipulation between Orb Tertius, LLC and the U.S. Small Business Administration, allowing the company to use the agency's cash collateral until April 30. SBA asserts interest in personal property owned by Orb Tertius based on a $50,400 loan it provided to the company. A portion of this collateral constitutes the agency's cash collateral. As protection, SBA was granted a replacement lien on all revenues generated by the company after its Chapter 11 filing, to the same extent and with the same priority and validity as its pre-bankruptcy lien. As additional protection, SBA will continue to receive a monthly payment of $246. The monthly payment started on Feb. 18. About Orb Tertius LLC Orb Tertius, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-bk-10482) on January 22, 2025, listing up to $500,000 in assets and up to $10 million in liabilities. Milton Sznaider, managing member of Orb Tertius, signed the petition. Judge Deborah J. Saltzman oversees the case. The Debtor is represented by: Matthew D. Resnik, Esq. Rhm Law LLP Tel: 818-285-0100 Email: matt@rhmfirm.com PREPAID WIRELESS: Gets Final OK to Use Cash Collateral ------------------------------------------------------ Prepaid Wireless Group, LLC received final approval from the U.S. Bankruptcy Court for the District of Maryland to use the cash collateral of T-Mobile USA, Inc. to support its business operations. The final order authorized the company to use cash collateral until July 31 for working capital requirements, general corporate and other business purposes, and the costs and expenses of administering its Chapter 11 case. T-Mobile will be provided with protection in the form of a replacement lien on post-petition collateral and a superpriority claim. The right of Prepaid Wireless Group to use cash collateral will expire on July 31 or upon the occurrence of so-called termination events including the conversion of the company's Chapter 11 case to one under Chapter 7; the appointment of a trustee or examiner; and the consummation of a plan of reorganization or emergence of the company from Chapter 11 protection. The next hearing is scheduled for July 31. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/GQBsL from PacerMonitor.com. About Prepaid Wireless Group Prepaid Wireless Group, LLC is a provider of wireless telecommunications services in Rockville, Md. Prepaid Wireless Group sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 24-18852) on October 21, 2024, with $10 million to $50 million in both assets and liabilities. Paul Greene, chief executive officer, signed the petition. Judge Maria Ellena Chavez-Ruark oversees the case. The Debtor is represented by: Irving Edward Walker, Esq. Cole Schotz P.C. Tel: 410-230-0660 Email: iwalker@coleschotz.com PROSPECT MEDICAL: Hires Vincent P. Slusher as Conflicts Counsel --------------------------------------------------------------- Prospect Medical Holdings, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ the Law Office of Vincent P. Slusher as conflicts counsel. The firm will provide advice and representation in connection with discrete matters related to these Chapter 11 Cases in which there may be an actual or potential conflict of interest between the Debtors' lead counsel, Sidley Austin LLP or existing conflicts counsel, Katten Muchin Rosenman LLP, and the other parties involved in such matters. The firm will be paid at these rates: Attorneys $450 to $695 per hour Paralegals $225 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Slusher 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: Vincent P. Slusher, Esq. Law Office of Vincent P. Slusher 2121 N. Akard St. Suite 250 Dallas, TX 75201 Tel: (214) 478-5926 About Prospect Medical Holdings, Inc. Prospect Medical Holdings owns Roger Williams Medical Center, Our Lady of Fatima Hospital, and several other healthcare facilities. Prospect Medical sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80002) on Jan. 11, 2025. In the petition filed by Paul Rundell, chief restructuring officer, the Debtor estimated assets and liabilities between $1 billion and $10 billion each. Bankruptcy Judge Stacey G. Jernigan handles the case. The Debtors' general bankruptcy counsel is Thomas R. Califano, Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas, Texas, and William E. Curtin, Esq., Patrick Venter, Esq., and Anne G. Wallice, Esq., at Sidley Austin LLP, in New York. The Debtors also tapped Alvarez & Marsal North America, LLC as financial advisor; Houlihan Likey, Inc. as investment banker; and Omni Agent Solutions, Inc. as claims, noticing & solicitation agent. On Jan. 29, 2025, the Office of the United States Trustee for Region 6 appointed an official committee of unsecured creditor in these Chapter 11 cases. The committee tapped Brinkman Law Group, PC as efficiency counsel. PROSPECT MEDICAL: Seeks to Hire BDO USA PC as Tax Consultant ------------------------------------------------------------ Prospect Medical Holdings, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ BDO USA, P.C. as tax consultant. The firm's services include: a. Sell-Side M&A Tax Assistance i. assist in sell-side tax due diligence concerning sale of certain hospital assets; ii. calculate gain or loss regarding sale/divestiture of hospital assets; iii. determine amount of cancellation of indebtedness income and/or gain concerning forgiveness of Debtors' obligations; iv. determine amount of Debtors' tax attributes; v. determine tax basis in stock and assets held by Debtors; vi. mitigate impact of triggering excess loss accounts; vii. identify tax positions and planning opportunities with respect to transactions germane to the case sub judice; and viii. provide other related tax consulting services requested by the Debtors (collectively, the "Sell-Side M&A Services"). b. Tax Compliance i. review and file certain amended 2023 federal and state tax returns to preserve net operating losses; ii. review and sign certain 2024 federal and state tax returns; iii. adopt IRC Section 174 to capitalize and amortize prepaid information technology services; iv. provide transaction cost analysis; v. tax accounting methods for federal and state income tax for tax years ending in 2024 and 2025; vi. determine federal research and developmental tax credits for tax year ending 2025; vii. provide federal and state income tax audit defense throughout these Chapter 11 Cases; and viii. provide other related tax compliance services requested by the Debtors (collectively, the "Tax Compliance Services"). c. IRC Section 174 Consulting Services i. review accounts to determine which accounts quality for IRC Section 174 ("Section 174") treatment; ii. identify Debtors' entities that incurred Section 174 expenses; iii. present findings to Debtors (together, Phase 1); and based off results of the foregoing; iv. calculate Section 174 costs incurred for tax years following 2021; v. prepare necessary forms for Debtors' entities subject to Section 174; and vi. provide other Section 174 consulting services requested by the Debtors (collectively, the "Section 174 Services" together with the Sell-Side M&A Services, and Tax Compliance Services, the "Services"). The firm will be paid at these rates: Principals/ Managing Director $725 to $1,150 per hour Director $650 to $850 per hour Manager $550 to $750 per hour Seniors $375 to $625 per hour Associates $175 to $375 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Kevin Wilkes, a principal at BDO US, 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: Kevin Wilkes BDO US, P.C. 2929 Allen Parkway, 20th Floor Houston, TX 77019 Tel: (713) 960-1706 Fax: (713) 960-9549 About Prospect Medical Holdings, Inc. Prospect Medical Holdings owns Roger Williams Medical Center, Our Lady of Fatima Hospital, and several other healthcare facilities. Prospect Medical sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80002) on Jan. 11, 2025. In the petition filed by Paul Rundell, chief restructuring officer, the Debtor estimated assets and liabilities between $1 billion and $10 billion each. Bankruptcy Judge Stacey G. Jernigan handles the case. The Debtors' general bankruptcy counsel is Thomas R. Califano, Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas, Texas, and William E. Curtin, Esq., Patrick Venter, Esq., and Anne G. Wallice, Esq., at Sidley Austin LLP, in New York. The Debtors also tapped Alvarez & Marsal North America, LLC as financial advisor; Houlihan Likey, Inc. as investment banker; and Omni Agent Solutions, Inc. as claims, noticing & solicitation agent. On Jan. 29, 2025, the Office of the United States Trustee for Region 6 appointed an official committee of unsecured creditor in these Chapter 11 cases. The committee tapped Brinkman Law Group, PC as efficiency counsel. PUBLISHERS CLEARING HOUSE: Gets Okay to Pay Prizes in Chapter 11 ---------------------------------------------------------------- Vince Sullivan of Law360 Bankruptcy Authority reports that on Friday, April 11, 2025, a New York judge approved a series of first-day motions for bankrupt sweepstakes company Publishers Clearing House, including authorization to pay around $475,000 in prepetition prize obligations over the next 30 days. About Publishers Clearing House Publishers Clearing House LLC is a direct-to-consumer company offering free-to-play digital entertainment. Through its PCH/Media division, PCH helps brands and advertisers connect with qualified, responsive audiences across its extensive chance-to-win gaming platforms. PCH has evolved into a multi-channel media company, combining digital entertainment, direct-to-consumer marketing, and commerce to create compelling experiences for users and brands alike. Publishers Clearing House filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10694) on April 9, 2025. The case is pending before the Honorable Martin Glenn. Klestadt Winters Jureller Southard & Stevens, LLP is serving as legal advisor, William H. Henrich and Laurence Sax from Getzler Henrich & Associates LLC are serving as Co-Chief Restructuring Officers, SSG Capital Advisors, LLC, is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company. Omni Agent Solutions is the claims agent. QUEST PATENT: Reports $2.5 Million Net Loss in 2024 --------------------------------------------------- Quest Patent Research Corporation filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K realizing a net loss of $2,471,651 for the year ended December 31, 2024, compared to net income of $2,278,473 for the year ended December 31, 2023. Somerset, New Jersey-based Rosenberg Rich Baker Berman, P.A., the Company's auditor since 2021, issued a "going concern" qualification in its report dated March 26, 2025, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. The Company has an accumulated deficit of $26,382,672 and negative working capital of approximately $11,536,076 as of December 31, 2024, and the Company can give no assurance that it will generate income in the future. Because of the Company's history of losses, its working capital deficiency, the uncertainty of future revenue, the Company's obligations to QF3 and Intelligent Partners, the Company's low stock price and the absence of an active trading market in its common stock and the failure of the Company to have effective internal controls over financial reporting, as reflected in the restatement of its financial statements for the year ended December 31, 2023, the ability of the Company to raise funds in the equity market or from lenders is severely impaired. These conditions, as well as any adverse consequences which would result if the Company fails to meet the continued listing requirements of the OTCQB, raise substantial doubt as to the Company's ability to continue as a going concern. The Company's revenue is generated exclusively from license fees generated from litigation seeking damages for infringement of the Company's intellectual property rights. Although the Company may seek to raise funds and to obtain third-party funding for litigation to enforce its intellectual property rights, the availability of such funds is uncertain. A full-text copy of the Form 10-K is available at: https://tinyurl.com/2xk268f6 About Quest Patent Rye, New York-based Quest Patent Research Corporation -- http://www.qprc.com-- is an intellectual property asset management company. The Company's principal operations include the development, acquisition, licensing, and enforcement of intellectual property rights that are either owned or controlled by the Company or one of its wholly owned subsidiaries. The Company currently owns, controls, or manages eleven intellectual property portfolios, which principally consist of patent rights. As of Dec. 31, 2024, the Company had $3,540,535 in total assets, $12,242,026 in total liabilities, and a total stockholders' deficit of $8,701,491. REBELLION POINT: Case Summary & Seven Unsecured Creditors --------------------------------------------------------- Debtor: Rebellion Point Entertainment, LLC East Coast Game Rooms 3928 N. Croatan Hwy Kitty Hawk, NC 27949 Business Description: Rebellion Point a/k/a East Coast Game Rooms is a family-owned retailer and outfitter based in Kitty Hawk, North Carolina, with over four decades of experience in both residential and commercial entertainment spaces. The Company offers a wide selection of game room products including arcade machines, billiards, ping pong, shuffleboard, and custom furniture. It also provides rentals, delivery, installation, and repair services for customers in the Outer Banks and broader East Coast region. Chapter 11 Petition Date: April 14, 2025 Court: United States Bankruptcy Court Eastern District of North Carolina Case No.: 25-01352 Judge: Hon. Pamela W Mcafee Debtor's Counsel: William P. Janvier, Esq. STEVENS MARTIN VAUGHN & TADYCH, PLLC 2225 W Millbrook Road Raleigh NC 27612 Tel: (919) 582-2300 E-mail: wjanvier@smvt.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by David M. Teague as owner. A full-text copy of the petition, which includes a list of the Debtor's seven unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/GRT66LA/Rebellion_Point_Entertainment__ncebke-25-01352__0001.0.pdf?mcid=tGE4TAMA RIVERSIDE COURT: Unsecureds Will Get 13% of Claims over 36 Months ----------------------------------------------------------------- The Riverside Court Condominium Association Phase II, Inc., submitted an Amended Plan of Reorganization dated March 17, 2025. The Debtor is a Louisiana non-profit corporation that was formed on March 2, 1984. It is the condominium association of The Riverside Court Condominiums located in Metairie, Louisiana. The debt to the SBA is secured by the proceeds from any special assessment for repayment of the SBA loan. The value of the SBA's collateral does not exceed the amount of the SBA's claim. The Debtor has agreed to pay adequate protection payments of $1,500 per month to the SBA. The Debtor will pay Jefferson Parish Water a deposit of $45,000 as adequate assurance of future payment. The Debtor has agreed to pay $15,000 in March and $30,000 in April 2025. The Debtor recognizes that to go forward, the company will need to restructure the secured debt and reduce the amount paid to unsecured creditors. By reorganizing its secured and unsecured debt and replacing aging pipes that could leak in the near future producing unaffordable water and sewer bills, the Debtor has positioned itself to avoid further reorganization. The financial projections show that the Debtor will have projected disposable income of three years. The term of this Plan is three years, commencing after the Effective Date ("Commitment Period"). The final Plan payment is expected to be paid on April 1, 2028. This Plan of Reorganization proposes to pay creditors of the Debtor from future revenue. The Class 1 claim consists of the secured portion of SBA's claim and is secured by all tangible and intangible personal property of the Debtor, which is valued at $80,000.00. The Debtor will pay the SBA the value of its collateral ($80,000.00) over thirty-six months at the contractual interest rate of 4%. The remainder of SBA's claim will be paid as a general unsecured creditor in Class 2. The Debtor reserves the right to prepay all or any portion of this claim at any time without penalty. Class 1 is impaired by this Plan. Class 2 consists of all non-priority unsecured claims. This Class shall be paid monthly commencing on the ninth month after the Effective Date and continuing through the thirty sixth month after the Effective Date. This Class will receive a distribution of 13% of their allowed claims. Class 2 Claims shall be paid pursuant to the Payment Schedule: Month 9-14 - $3,000.00 Months 15-36 - $4,500/mo. Class 2 Claims shall be paid pursuant to the Payment Schedule. Individual amounts are pro rata and based on the amount of each allowed claim. The proceeds from any avoidance actions or other litigation initiated by the Reorganized Debtor, after payment of any attorney fees and costs, will be paid to holders of allowed Class 2 Claims as additional distributions. Class 2 is impaired. This Plan will be funded by the fees and special assessments paid to the Debtor by the condominium owners. The Debtor anticipates that Nayanka Nero, who is an insider of the Debtor, will continue in her position as secretary of the Debtor. The compensation of Mrs. Nero will continue at the Court approved monthly salary of $7,474.14, plus cell phone ($50.00) and vehicle allowance ($308.00). The Debtor does not anticipate increasing the salaries of insiders in the foreseeable future. The Debtor will dedicate $5,000.00 per month to a maintenance reserve for maintenance of the Property. The maintenance reserve will also be available to defray any costs related to excess plumbing costs from leaks, as well as bills to Jefferson Parish Water over the amounts projected in the Cash Flow Projections. A full-text copy of the Amended Plan of Reorganization dated March 17, 2025 is available at https://urlcurt.com/u?l=bnNxv4 from PacerMonitor.com at no charge. Counsel to the Debtor: Patrick S. Garrity, Esq. Derbes Law Firm, L.L.C. 3027 Ridgelake Drive Metairie, LA 70002 Telephone: (504) 207-0913 Facsimile: (504) 832-0327 Email: pgarrity@derbeslaw.com About The Riverside Court Condominium Association Phase II Inc. The Riverside Court Condominium Association Phase II, Inc. is a Louisiana non-profit corporation that was formed on March 2, 1984. It is the condominium association of The Riverside Court Condominiums located at 6320 Riverside Drive (formerly Ackel Street), Metairie, Louisiana, which contains 198 condominium units. The Debtor filed a Chapter 11 bankruptcy petition (Bankr. E.D. La. Case No. 24-12410) on Dec. 9, 2024. In the petition signed by Nayanka Nero, secretary, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Judge Meredith S. Grabill oversees the case. Patrick Garrity, Esq., at The Derbes Law Firm, LLC, is the Debtor's legal counsel. ROCKRIDGE2016 LLC: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Rockridge2016, LLC 143 Manor Lakes Estates Spring, TX 77379 Business Description: The Debtor owns and operates Rockridge Place Apartments, located at 16818 City View Place in Houston, TX 77060. Chapter 11 Petition Date: April 14, 2025 Court: United States Bankruptcy Court Southern District of Texas Case No.: 25-32047 Judge: Hon. Jeffrey P Norman Debtor's Counsel: James Q. Pope, Esq. THE POPE LAW FIRM 6161 Savoy Drive 1125 Houston TX 77036 Tel: (713) 449-4481 E-mail: jamesp@thepopelawfirm.com Estimated Assets: $50 million to $100 million Estimated Liabilities: $50 million to $100 million Fercan Kalkan signed the petition as managing member. A list of the Debtor's 20 largest unsecured creditors was not provided alongside the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/5AJVQDY/Rockridge2016_LLC__txsbke-25-32047__0001.0.pdf?mcid=tGE4TAMA RONALD JINSKY: Seeks Subchapter V Bankruptcy in Wisconsin --------------------------------------------------------- On April 11, 2025, Ronald Jinsky LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Wisconsin. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 50 and 99 creditors. The petition states funds will be available to unsecured creditors. About Ronald Jinsky LLC Ronald Jinsky LLC, doing business as Jinsky Trucking, is a family-owned and operated interstate trucking company based in Beloit, Wisconsin. Established in 1982, the Company specializes in transporting general freight, metal sheets, building materials, and paper products. Ronald Jinsky LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wis. Case No. 25-10838) on April 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Daniel J. McGarry, Esq. at KREKELER LAW, S.C. RYAN SPECIALTY: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable ---------------------------------------------------------------- Fitch has affirmed the Long-Term Issuer Default Rating (IDR) for both Ryan Specialty, LLC's and its parent's, Ryan Specialty Holdings, Inc. (collectively, Ryan Specialty) at 'BB+'. The Rating Outlook is Stable. Fitch also affirmed ratings of 'BBB-' with a Recovery Rating of 'RR1' to the company's senior secured revolver, term loans and notes issued by the borrower subsidiary. Ryan Specialty's ratings reflect its solid market position in insurance brokerage, strong organic growth profile, stable and recurring business model, solid EBITDA margins, and exposure to a recession-resilient end market. However, moderate financial leverage and an acquisitive growth strategy weigh against the ratings. Key Rating Drivers Solid Market Position: Ryan Specialty has an established position in the U.S. wholesale insurance brokerage market as the second-largest provider by total premiums, according to Business Insurance. Ryan Specialty is well-positioned in the fast-growing excess & surplus (E&S) market due to its scale and historic focus on this sector. The E&S market has grown at double the CAGR of the standard admitted market in recent years. Ryan Specialty's scale, focus and expertise in the E&S market has supported market share gains and robust organic revenue growth. Strong Organic Growth: Fitch views Ryan Specialty's growth profile as credit positive and expects the company to benefit from solid pricing and overall economic trends in the near term. Organic revenue growth was 13%-22% per year in 2020-2024, which is strong relative to peers and signals a combination of solid execution and end-market exposure. The company is expanding its presence in certain end-markets and regions through producer and underwriter recruitment, which should support continued healthy organic trends. Manageable Leverage: EBITDA leverage increased to 4.1x for 2024, or around 3.7x on a pro forma basis for completed M&A, due to incremental debt taken on to fund acquisitions. Leverage has been in the 3.0x-4.0x range in recent years. Fitch expects a similar range over the rating horizon, although M&A could drive temporary periods of higher leverage. Ryan Specialty historically used debt along with cash from operations to fund M&A, and this will likely continue in the future. Relatively modest capex and other cash requirements result in healthy FCF generation that further supports inorganic growth. Stable Business Model: Ryan Specialty operates a predictable business model in an industry that performs well across various macroeconomic environments. It has not experienced a meaningful market correction since its founding in 2010, but industry peers have proven resilient across the full economic cycle. Its focus is solely on insurance, which Fitch believes has lower cyclicality during a downturn than some consulting areas in which some of its larger peers compete. Healthy Cash Flows: The company's historically positive FCF and earnings trajectory supports the IDR. Its low capex and working capital requirements, common to the brokerage industry, enable solid cash flow generation. Ryan Specialty's structure means cash taxes paid by the parent are low, although overall tax distributions are a material use of cash and paid via distributions to the LLC unit holders, including Ryan Specialty Holdings, Inc. management, and other holders. Fitch projects Ryan Specialty could generate FCF margins (after LLC tax distributions) as a percentage of revenue in the mid-teens in the next few years. Governance Structure: Governance risk is a factor due to material ownership concentration by its founder Patrick G. Ryan who is currently Executive Chairman and was Chairman and CEO until late 2024. Mr. Ryan also founded Aon Corporation and served as its Chairman and CEO for 41 years. However, this risk has been mitigated by the company's large and experienced executive bench, and by the 2024 transition wherein Mr. Ryan moved into the Executive Chairman role. Mr. Ryan and his family have 74% of the voting rights, resulting in key-person risk and risks pertaining to ownership concentration. Limited Diversification: Ryan Specialty's lower diversification versus certain peers constrains its IDR. The company has scaled its business materially since its founding, with $2.5 billion of revenue in 2024. However, it is much less diversified by region and product offerings than its larger investment-grade peers. Non-U.S. revenue comprised only 5% of revenue in 2024. The company is heavily concentrated in the specialty E&S market, with the more standard admitted market comprising 20%-25% of revenue. Diverse Broker and Carrier Relationships: The insureds served by Ryan Specialty's clients operate in many businesses and industries and there is no meaningful carrier concentration. Its clients are retail brokers and agents, other intermediaries, and insurance carriers. The top five U.S. retail brokers comprise roughly 27% of revenue, and no single retail broker accounted for more than 8.8% of revenue in 2024. No carrier accounted for more than 7% of 2024 revenue, excluding all Lloyd's syndicates combined. Parent Subsidiary Linkage: Fitch's analysis includes a weak parent/strong subsidiary approach between the parent, Ryan Specialty Holdings, Inc, and Ryan Specialty, LLC. The high quality of the overall linkage results in an equalization of the IDRs. Ryan Specialty, LLC is the company's main operating subsidiary where all of the company's sales and earnings are generated. The parent (financial filer) owns 47.9% of the LLC, while Ryan Specialty's founder, management team and other holders own the majority share (52.1%). Peer Analysis Ryan Specialty competes in a fragmented sector of insurance brokerage and benefits services providers that includes other local or regional companies, national agents and large multinational brokers. Fitch rates numerous companies in the insurance brokerage and business services industries that are comparable in terms of scale, operating profile and business model. Ryan Specialty's scale is small compared to that of larger global brokers, such as Marsh & McLennan Companies, Inc. (A-/Stable), Aon plc (BBB+/Stable), Willis Towers Watson plc (BBB+/Stable), and Arthur J. Gallagher & Co. (BBB+/Stable). Fitch also rates Navacord Intermediate Holdings, Inc. (B/Stable) and Truist Insurance Holdings, LLC, (B/Stable), although these companies are much more highly levered than Ryan Specialty. The 'BB+' rating reflects Ryan Specialty's strong historic growth profile, solid profitability and cash flow generation, offset by its smaller scale, moderate leverage, and more limited diversification versus its larger industry peers. Key Assumptions - Organic growth assumed at 9%-10% range in the next few years, but incremental M&A leads to higher reported revenue growth; - EBITDA margins expand to the low- to mid-30% range through 2028, driven by operating leverage on higher revenue, some benefits from M&A and cost-saving initiatives; - Capex remains near 1% of revenue over the ratings horizon; - M&A spend estimated at $600 million to $900 million per year, which Fitch projects will be largely debt-financed; - EBITDA leverage remains in the 3.0x-3.5x range, although Fitch believes the company is willing to assume higher leverage for certain periods for the right acquisitions. RATING SENSITIVITIES Factors That Could, Individually Or Collectively, Lead To Negative Rating Action/Downgrade - EBITDA leverage, defined as debt/EBITDA, sustained above 4.0x for a sustained period without a credible deleveraging plan; - A material change in strategy and/or deterioration of financial profile or operating performance. Factors That Could, Individually Or Collectively, Lead To Positive Rating Action/Upgrade - Increased diversification by end-market exposure, product lines and/or region; - EBITDA leverage expected to be sustained below 3.0x. Liquidity and Debt Structure Fitch believes liquidity is sufficient and should enable it to invest for growth while also providing sufficient downside protection for the ratings. The company had $540 million cash on its balance sheet and an undrawn $1.4 billion senior secured revolver as of December 2024. Fitch expects M&A to continue, which will affect its cash flow over time. Liquidity will be also supported by stable and positive cash generation in the business and availability on its revolver. The company's capital structure includes: a first lien senior secured revolver with $1.4 billion of capacity, a $1.7 billion term loan, and $1.6 billion of senior secured notes. The revolver matures in July 2029 while the term loan will mature in 2031 and senior secured notes mature in 2030-2032. Issuer Profile Founded in 2010, Ryan is a provider of specialty insurance products and solutions for insurance brokers, agents, and carriers. It is publicly traded on the NYSE under the ticker RYAN. 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 Ryan Specialty has an ESG Relevance Score of '4' for Governance Structure due to its significant control and ownership by its founder Patrick G. Ryan. Mr. Ryan has been a key force behind the company's success historically and will likely remain so in the years ahead, which presents key-person risk. This factor was a consideration, in conjunction with other factors, used in Fitch's rating analysis that could have an impact over time to the overall IDR. 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 ----------- ------ -------- ----- Ryan Specialty, LLC LT IDR BB+ Affirmed BB+ senior secured LT BBB- Affirmed RR1 BBB- Ryan Specialty Holdings, Inc. LT IDR BB+ Affirmed BB+ SCRIPPS (E.W.): Moody's Cuts CFR to Caa1 & Unsecured Notes to Caa3 ------------------------------------------------------------------ Moody's Ratings downgraded The Scripps (E.W.) Company's ("Scripps" or the "company") corporate family rating to Caa1 from B3 and probability of default rating to Caa2-PD from Caa1-PD. Moody's also appended the "/LD" designation to the Caa2-PD PDR (now Caa2-PD/LD) following completion of distressed debt exchanges with existing lenders to extend debt maturities as disclosed in the company's recent Form 8-K filing [1]. The "/LD" appendage will be removed in about three business days. The exchanges in aggregate are considered a "limited default" under Moody's definitions. Moody's also downgraded the ratings on the $426 million outstanding 5.875% senior unsecured notes due July 2027 (the "2027 Notes") and $392 million outstanding 5.375% senior unsecured notes due January 2031 to Caa3 from Caa2. Moody's affirmed the B2 ratings on the existing $70 million senior secured RCF (downsized from $585 million) due January 2026 and $523 million outstanding 3.875% senior secured first-lien notes due January 2029. Scripps' SGL-3 Speculative Grade Liquidity rating remains unchanged. The outlook is negative. In connection with this rating action, Moody's assigned B2 ratings to three new gtd senior secured first-lien bank credit facilities comprising a: (i) $208 million revolving credit facility (RCF) due July 2027; (ii) $545 million term loan B-2 maturing June 2028 (the "New Extended TLB-2"); and (iii) $340 million term loan B-3 due November 2029 (the "New Extended TLB-3"). Moody's will withdraw at closing the B2 ratings on the old $719 million outstanding senior secured term loan B-2 due May 2026 (the "Existing TLB-2") and old $541 million outstanding senior secured term loan B-3 due January 2028 (the "Existing TLB-3") given that both debt obligations will be fully extinguished when the debt exchanges settle via repayment and conversion into the new extended term loans. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. RATINGS RATIONALE Moody's considers the transactions a distressed exchange because the effect of the maturity extensions is default avoidance with respect to facilitating a refinancing of the term loans with the existing lender group to avoid paying meaningfully higher interest expense resulting in an untenable debt capital structure if the refinancings were pursued in the traditional capital markets. Governance risk considerations were a key driver of the rating actions reflecting Scripps' leveraged balance sheet and distressed exchange transactions. The downgrade of the CFR reflects Moody's medium to long-term expectations for continued pressure on retransmission revenue growth due to the increasing pace of subscriber losses arising from secular cord-cutting trends, as well as the ongoing weakness in Scripps' linear TV core advertising growth. These trends will continue to weigh on the company's future operating performance leading to EBITDA declines and debt protection measures that are consistent with Caa1 CFR issuers. The Caa1 CFR also reflects Scripps' high financial leverage, which was 6x total debt to EBITDA at year-end 2024. Though Moody's expects the company to repay debt, leverage is expected to remain above the 6x area due to continued top-line revenue and EBITDA pressures (leverage metrics are Moody's adjusted on a two-year average EBITDA basis). The downgrade also reflects refinancing risk associated with the growing principal balance on the $688 million outstanding preferred shares, which is increasing at a 9% PIK rate compounded quarterly. This will result in a sizable repayment obligation and negatively impact free cash flow (FCF) when the instrument is eventually redeemed via a potential refinancing at a high cost of capital. Given the absence of meaningful excess cash flow, there is limited capacity to address upcoming maturities without a balance sheet restructuring, which could include additional debt exchanges, maturity extensions and/or debt for equity swaps. The downgrade of the PDR to Caa2-PD reflects the high likelihood that Scripps will pursue a second distressed debt exchange associated with the 2027 Notes within the next 6-12 months, whereas the Caa1 CFR reflects a higher expected recovery in event of default. The negative outlook reflects the structural and secular pressures in Scripps' business and potentially higher leverage associated with refinancing the preferred shares coupled with the possibility of additional distressed exchanges. The Caa1 CFR is supported by Scripps' scale and market reach with local television stations broadcasting to 36% of US households (25% excluding local ION affiliates). The company is one of the largest US broadcasters with local TV stations affiliated with the Big Four broadcast networks. However, the credit profile is negatively impacted by the industry's ongoing structural decline in linear TV core advertising as non-political TV advertising budgets continue to erode in favor of digital media, especially given that relative to its rated TV broadcast peers, Scripps has a higher exposure to advertising revenue, which is inherently cyclical. Moody's expects Scripps' linear TV core ad revenue will continue to be pressured, which could worsen during periods of weak CPM (cost per thousand impressions) pricing, depressed TV ratings, deteriorating macroeconomic conditions and/or displacement during election years. To offset these challenges and diversify its operations, Scripps has invested in new technologies (i.e., Connected TV and Tablo Over-the-Air subscription-free TV) and businesses (i.e., Scripps Sports), however this burdens cash flows and creates operational risk in the short-term until these assets become profitable and can contribute meaningfully to EBITDA. Scripps' revenue model benefits from a mix of recurring retransmission fees that historically helped to offset the inherent volatility of traditional advertising revenue. Retransmission fees tend to be revised upwards at the time of contract renewal and benefit from annual escalators. Over the next several years, however, Moody's expects retransmission revenue will continue to experience pressure as the rate of traditional subscriber losses outpaces annual fee increases, which constrains the rating. In even numbered years, revenue benefits from material political advertising spend, especially during presidential election years, which can mask pressure in retransmission revenue, but also boosts EBITDA. During election years, Scripps generates good operating cash flow, which declines during non-election years. Over the next 12-18 months, Moody's expects Scripps will maintain adequate liquidity as reflected in the SGL-3 Speculative Grade Liquidity rating. At FYE 2024, cash and cash equivalents were around $24 million and the legacy $585 million RCF (downsized to $70 million in connection with the exchanges) was undrawn. Following the exchanges, Scripps will maintain two committed RCFs totaling $278 million ($208 million due July 2027 and $70 million due January 2026). Moody's expects the RCFs will remain partially drawn for most of 2025, which were utilized to help fund cash outlays for transaction fees and repay a portion of the legacy term loans associated with the debt exchanges. The July 2027 RCF has a 3.5x maximum first-lien net leverage quarterly maintenance covenant that steps down to 3.25x in Q4 2026 and remains at this level thereafter. Moody's expects Scripps will comply with this covenant with minimum headroom. Moody's expects that Scripps will generate roughly $60 million to $85 million of FCF in 2025 (non-election year) and maintain sufficient cash balances. The company is prevented from paying common dividends or engaging in share repurchases while the $688 million preferred shares remain outstanding. STRUCTURAL CONSIDERATIONS In connection with the debt exchanges, with respect to the $719 million Existing TLB-2, Scripps borrowed roughly $362 million under a new $450 million A/R securitization facility due March 2028 to repay a like amount of the Existing TLB-2, which reduced its balance to $357 million. Of the remaining principal, Scripps exchanged $111 million at par of Existing TLB-2 into the New Extended TLB-2, used $224 million of proceeds funded by certain participating lenders from the New Extended TLB-2 and repaid around $23 million with cash-on-hand (including revolver drawings) to extinguish the Existing TLB-2. With respect to the $541 million Existing TLB-3, Scripps exchanged $200 million principal at par of Existing TLB-3 into the New Extended TLB-2, exchanged $340 million principal at par of Existing TLB-3 into the $340 million New Extended TLB-3 and repaid the remaining approximate $1 million with cash-on-hand to extinguish the Existing TLB-3. Both the New Extended TLB-2 and New Extended TLB-3 will have a 91-day springing maturity ahead of the 2027 Notes if more than $50 million of the 2027 Notes are outstanding at that time. Scripps also extended the maturity of $208 million of commitments under its legacy $585 million RCF to July 2027. The B2 ratings on the senior secured debt obligations are one notch lower than the implied outcome under Moody's Loss Given Default (LGD) framework to better reflect Moody's views of the ultimate recovery in a default scenario based on an estimated value of the assets relative to the rank and size of these claims in the capital structure given the continuing structural and secular pressures in Scripps' core revenue. The secured obligations are rated two notches above the CFR to reflect the sizable amount of cushion from the senior unsecured notes ranked beneath them. The Caa3 ratings on the senior unsecured notes reflect the very low anticipated recovery in a distressed scenario given their unsecured position relative to a sizeable amount of first-lien secured debt ahead of them. FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Though unlikely near-term, ratings could be upgraded if Scripps' leverage is sustained well below 6x on a two-year average EBTIDA basis (via debt repayment and/or EBITDA growth) and two-year average FCF to debt is sustained near the mid-single digit range (all metrics are Moody's adjusted). Scripps would also need to: (i) exhibit organic revenue growth and stable-to-improving EBITDA margins on a two-year average basis; (ii) adhere to conservative financial policies; and (iii) maintain at least good liquidity to be considered for an upgrade. The company would also need to address redemption of the preferred shares' growing principal balance without negatively impacting leverage or materially burdening liquidity. Ratings could be downgraded if leverage was sustained above 7x on a two-year average EBITDA basis (Moody's adjusted) as a result of weak operating performance or more aggressive financial policies. A downgrade could also arise if two-year average FCF to debt was sustained below 1% (Moody's adjusted), Scripps experienced deterioration in liquidity or covenant compliance weakness or Moody's expects that Scripps will pursue further distressed exchanges. Headquartered in Cincinnati, OH and founded in 1878, The Scripps (E.W.) Company owns and operates 61 local television stations in 42 markets and 44 ION stations across 8 national networks that collectively reach about 36% of US households (25% excluding local ION affiliates). The Local Media segment includes the company's local TV stations and their related digital operations, while the Scripps Networks unit comprises eight national entertainment and news networks - ION, Bounce, Court TV, Defy TV, Grit, ION Mystery, Laff and Scripps News - each reaching well over 90% of US television households over-the-air. The company is publicly traded with the Scripps family controlling effectively all common voting rights (93%) and an estimated 28% economic interest, with remaining shares widely held. Revenue at fiscal year ended December 2024 totaled approximately $2.5 billion. The principal methodology used in these ratings was Media published in June 2021. SHARPLINK GAMING: Gets Nasdaq Extension to Regain Compliance ------------------------------------------------------------ SharpLink Gaming, Inc. announced that it received notice from the Nasdaq Listing Qualifications Panel of The Nasdaq Stock Market LLC that the Hearings Panel has granted the Company additional time to achieve compliance with the minimum bid price requirement as set forth in Listing Rule 5550(a)(2), which requires issuers to maintain a minimum bid price of $1.00 per share on the Nasdaq; and Listing Rule 5550(b)(1), which requires listed issuers to maintain minimum stockholders' equity of $2.5 million. Specifically, the Hearings Panel has agreed to provide the Company until May 23, 2025 to regain compliance with both the Bid Price Rule and the Equity Rule. "We are delighted that the Hearings Panel approved of our plan and granted us the time we require to regain compliance and return to good standing with Nasdaq. We are moving forward with executing several important related initiatives and intend to work relentlessly to ensure that each of our compliance goals are achieved," stated Rob Phythian, Chairman and Chief Executive Officer of SharpLink. As previously disclosed in the Company's Annual Report on Form 10-K/A filed with the SEC on March 17, 2025, SharpLink requested and received a hearing with the Hearings Panel, which took place on February 25, 2025. Based on the information presented by SharpLink at the hearing, the Hearings Panel determined to grant the Company's request for an exception to complete its compliance plan. The Panel granted the Company's request for continued listing on the Nasdaq, subject to the following: 1. On or before May 23, 2025, the Company shall demonstrate compliance with Listing Rules 5550(a)(2), and 5550(b)(1); 2. On or before May 23, 2025, the Company must file a public disclosure which describes any transactions undertaken by the Company to increase its equity and provides an indication of its equity following those transactions. The Company can do so by including in the public filing a balance sheet not older than 60 days with pro-forma adjustments for any significant transactions or events occurring on or before the report date. Alternatively, the Company can provide an affirmative statement in its public filing that, as of the date of the report, the Company believes it remains in compliance with the Equity Rule based upon the specific transactions or events described, after considering anticipated losses through that date. In this later case, the Company must also provide the Hearings Panel and Nasdaq Staff with a balance sheet not older than 60 days with pro-forma adjustments for all significant transactions or events occurring on or before the report date, including adjustments for anticipated losses, if any, incurred through the date of the balance sheet; and 3. In addition, on or before May 23, 2025, the Company must provide the Hearings Panel with an update on its fundraising plans and updated income projections for the next 12 months, with all underlying assumptions clearly stated. The Company's Common Stock will remain listed and eligible for trading on Nasdaq during the period SharpLink works on demonstrating compliance with the Nasdaq listing rules. About SharpLink Gaming Headquartered in Minneapolis, Minnesota, SharpLink -- http://www.sharplink.com/-- is a trusted marketing partner for leading sportsbooks and online casino operators globally. Through its iGaming affiliate network, PAS.net, the company specializes in diving qualified traffic, player acquisition, retention, and conversions for U.S.-regulated and international iGaming operators. PAS.net has earned industry recognition as the Top Affiliate Website and Top Affiliate Program in the European online gambling industry for four years in a row. Additionally, SharpLink operates state-specific affiliate marketing websites to attract and drive local sports betting and casino gaming traffic to its licensed partners. In its Mar. 14, 2025, report attached in the Company's Annual Report on form 10-K for the year ended Dec. 31, 2024, Cherry Bekaert LLP, the Company's auditor since 2022, issued a "going concern" qualification citing that the Company has recurring losses and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2025, Sharplink Gaming had $2.57 million in total assets, $488,300 in total liabilities, and $2.08 million in equity held by shareholders. SHARPLINK GAMING: OKs 2025 Executive and Board Compensation Plans ----------------------------------------------------------------- As disclosed in SharpLink Gaming, Inc.'s preliminary proxy statement, filed with the U.S. Securities and Exchange Commission, the Compensation Committee of the Board of Directors of SharpLink approved the Company's 2025 Executive Compensation Plan and the 2025 Board Compensation Plan. In connection with the Committee's approval of the 2025 Executive Plan, amendments to the original executive employment agreements, dated February 13, 2024, entered into by the Company and the Company's chief executive officer, Mr. Rob Phythian, and SharpLink's chief financial officer, Mr. Robert DeLucia, were approved and adopted by the Committee. CEO Amendment: In accordance with the 2025 Executive Plan, Mr. Phythian is eligible to receive an increase in his annual base salary to $440,000, with the increase subject to the Company regaining full compliance with the Nasdaq minimum listing requirements, as described in Item 3.01, on or before May 23, 2025. In addition, Mr. Phythian shall be eligible to receive an annual cash bonus equal to up to 50% of the annual base salary, subject to certain performance benchmarks being achieved as determined and approved by the Committee. In addition, the Company shall directly pay or reimburse Mr. Phythian up to $10,000 annually for the following: i) premiums of a term life insurance policy and ii) if elected, executive health exams not covered by the Company's prevailing benefits plan. In addition, the Company shall directly pay or reimburse Mr. Phythian up to $12,000 annually for payment of country club annual dues. Mr. Phythian will be eligible to be granted up to 220,000 RSUs based on certain predefined performance benchmarks being achieved in 2025, as determined and approved by the Committee. Mr. Phythian shall also be eligible to be granted additional equity awards in accordance with the Company's policies as in effect from time to time, as recommended and approved by the Committee. The granting of any and all future equity awards to Mr. Phythian will be subject to stockholder approval of the increase in the number of shares authorized under the 2023 Equity Incentive Plan – approval which may be sought by the Company pursuant to a Special General Meeting of Stockholders to be held later this year. The CEO Amendment is for a term of two years, subject to earlier termination, and will be automatically extended for successive one-year periods unless either party gives written notice of termination at least 120 days in advance of the expiration of the Phythian Term or the then-current term, as applicable. The CEO Amendment provides that if Mr. Phythian is terminated by the Company without cause or if he terminates his employment for good reason, he will be entitled to: i) continuation of the annual base salary at the rate in effect immediately prior to the termination date for 12 months following the termination date paid accordance with the Company's normal payroll practices, but no less frequently than monthly; and ii) if Mr. Phythian elects to continue group health coverage under any Company group health plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, the Company shall reimburse Mr. Phythian for a portion of his COBRA premiums, such that his unreimbursed cost of COBRA premiums does not exceed the cost to Mr. Phythian of such health plan premiums immediately prior to termination, for a period of up to one year after his termination (or until he is no longer eligible for COBRA continuation, if earlier). In addition, Mr. Phythian shall be entitled to severance, payable in a lump sum equal to 100% of the annual base salary. If employment is terminated by the Company for cause or by Mr. Phythian for other than good reason, Mr. Phythian will be entitled only to the accrued salary and bonus obligations through the date of termination. CFO Amendment: In accordance with the 2025 Executive Plan, Mr. DeLucia is eligible to receive an increase in his annual base salary to $261,684, with the increase subject to the Company regaining full compliance with the Nasdaq minimum listing requirements, as described in Item 3.01, on or before May 23, 2025. In addition, Mr. DeLucia shall be eligible to receive an annual cash bonus equal to up to 50% of the annual base salary, subject to certain performance benchmarks being achieved as determined and approved by the Committee. In addition, the Company shall directly pay or reimburse Mr. DeLucia up to $10,000 annually for the following: i) premiums of a term life insurance policy and ii) if elected, executive health exams not covered by the Company's prevailing benefits plan. Mr. DeLucia will be eligible to be granted up to 130,842 RSUs based on certain predefined performance benchmarks being achieved in 2025, as determined and approved by the Committee. Mr. DeLucia shall also be eligible to be granted additional equity awards in accordance with the Company's policies as in effect from time to time, as recommended and approved by the Committee. The granting of any and all future equity awards to Mr. DeLucia will be subject to stockholder approval of the increase in the number of shares authorized under the 2023 Equity Incentive Plan – approval which may be sought by the Company pursuant to a Special General Meeting of Stockholders to be held later this year. The CFO Amendment is for a term of two years, subject to earlier termination, and will be automatically extended for successive one-year periods unless either party gives written notice of termination at least 120 days in advance of the expiration of the DeLucia Term or the then-current term, as applicable. The CFO Amendment provides that if Mr. DeLucia is terminated by the Company without cause or if he terminates his employment for good reason, he will be entitled to: i) continuation of the annual base salary at the rate in effect immediately prior to the termination date for 12 months following the termination date paid accordance with the Company's normal payroll practices, but no less frequently than monthly; and ii) if Mr. DeLucia elects to continue group health coverage under any Company group health plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, the Company shall reimburse Mr. DeLucia for a portion of his COBRA premiums, such that his unreimbursed cost of COBRA premiums does not exceed the cost to Mr. DeLucia of such health plan premiums immediately prior to termination, for a period of up to one year after his termination (or until he is no longer eligible for COBRA continuation, if earlier). In addition, Mr. DeLucia shall be entitled to severance, payable in a lump sum equal to 100% of the annual base salary. If employment is terminated by the Company for cause or by Mr. DeLucia for other than good reason, Mr. DeLucia will be entitled only to the accrued salary and bonus obligations through the date of termination. About SharpLink Gaming Headquartered in Minneapolis, Minnesota, SharpLink -- http://www.sharplink.com/-- is a trusted marketing partner for leading sportsbooks and online casino operators globally. Through its iGaming affiliate network, PAS.net, the company specializes in diving qualified traffic, player acquisition, retention, and conversions for U.S.-regulated and international iGaming operators. PAS.net has earned industry recognition as the Top Affiliate Website and Top Affiliate Program in the European online gambling industry for four years in a row. Additionally, SharpLink operates state-specific affiliate marketing websites to attract and drive local sports betting and casino gaming traffic to its licensed partners. In its Mar. 14, 2025, report attached in the Company's Annual Report on form 10-K for the year ended Dec. 31, 2024, Cherry Bekaert LLP, the Company's auditor since 2022, issued a "going concern" qualification citing that the Company has recurring losses and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2025, Sharplink Gaming had $2.57 million in total assets, $488,300 in total liabilities, and $2.08 million in equity held by shareholders. SINGH BROS: Unsecured Creditors Will Get 100% of Claims in Plan --------------------------------------------------------------- Singh Bros Express LLC and affiliates filed with the U.S. Bankruptcy Court for the Western District of Washington a Disclosure Statement describing Joint Plan of Reorganization dated March 17, 2025. The Debtors are, or have, operated in the freight hauling, drayage, trucking, and transport industry at the Port of Tacoma. Debtor Express owns and operates a valuable parcel of real estate at the Port of Tacoma commonly known as 1501 E. Portland Ave., Tacoma, WA 98421 (the "Real Property"). The Debtors' Plan is designed to permit an appeal of an adverse judgment against the Debtors to proceed to completion while maintaining the status quo, and then providing for distributions depending on the outcome of the appeal. More specifically, the Plan is a liquidating trust plan with a toggle. Although the timing and method of creditor repayment differs depending on the Appeals toggle, this is intended to be a Plan that provides 100% distributions to all Classes of Creditors under either toggle, subject to agreed carve-outs. All Creditor distributions under the Plan will be made by a Liquidating Trustee, who shall serve as an independent fiduciary pursuant to a Liquidating Trust Agreement. The Debtors have selected Michael P. Klein as the Liquidating Trustee. Generally, the Plan implements a "pause" that will permit the completion of the Appeals, followed by Creditor distributions upon issuance of a Mandate. The Liquidating Trust will be funded by an initial transfer of all Available Cash to the Liquidating Trust on the Effective Date. The Debtors estimate there will be $75,000 Available Cash initially deposited into the Liquidating Trust on the Effective Date. Thereafter, for a total period of 60 months, the Liquidating Trust will be funded by: (i) quarterly deposits of Reorganized Express Net Income, which is projected to be $39,640.00 per month, or $118,920.00 per quarter; (ii) monthly deposits of all projected disposable income of Surjit Singh and Kuldip Singh pursuant to the provisions of the Kuldip Chapter 11 Plan and the Surjit Chapter 11 Plan, which is projected to be $11,414.27 per month; (iii) Singh Bros Container Services contribution through the Surjit Chapter 11 Plan and the Kuldip Chapter 11 Plan in the amount of $2,457.15 per month; and (iv) monthly contributions from non-debtor Singh Bros Container Services through the Debtors' Plan in the amount of $5,802.28 per month. Over the sixty-month duration of the Plan and the Liquidating Trust, the Debtors project that Reorganized Express will contribute a total of $2,378,400.00 to the Liquidating Trust; Surjit Singh and Kuldip Singh will together contribute a total of $832,285.07 (including contributions through their plan by Singh Bros Container Services) to the Liquidating Trust; and Singh Bros Container Services will contribute a total of $348,136.80 to the Liquidating Trust through the Debtors' Plan. Accordingly, the Debtors project the grand total of all contributions to the Liquidating Trust will be at least $3,558,821.37. Additionally, in the Unsuccessful Appeal Toggle, the Liquidating Trustee will surrender the All Track Registry Funds Interest and the All Track Sale Property to All Track in partial satisfaction of All Track's Claim in the amount of the All Track Collateral Value. This will enable a 100% distribution to all Creditors in either the Successful Appeal Toggle or the Unsuccessful Appeal Toggle, inclusive of surrender of collateral as contemplated by the Plan in the Unsuccessful Appeal Toggle, and subject to agreed carve-outs. The Plan contemplates a "toggle" based on the outcome of the Appeals. Under either toggle, the distribution to Holders of Claims will be the full value of their Allowed Claim, subject to agreed carve-outs. Further, the Plan creates a Liquidating Trust whereby all Trust Assets of the Debtors are placed in the Liquidating Trust for the benefit of holders of Liquidating Trust Beneficiary Interests. Class 6 consists of General Unsecured Claims. On the Effective Date, each Class 6 Creditor's Claim shall be converted to an unsecured Liquidating Trust Beneficiary Interest equal to the Allowed amount of each Class 6 General Unsecured Claim. Except to the extent that a Holder of a Class 6 General Unsecured Claim agrees to less favorable treatment, each Class 6 General Unsecured Claim shall receive, in full and final satisfaction of such Claim, its pro rata share of the Net Trust Assets, after payment in full of all senior classes of claims, from the Claims Reserve Account. No payment shall be made to the Holder of any Class 6 General Unsecured Claim earlier than the later of (i) transmission of the Appeal Toggle Notice and (ii) full administration of all senior Classes of Claims under this Plan. No interest shall be paid on Class 6 Claims. If, at the end of the 60-month duration of the Plan, the total contributions to and interest accruals upon the Liquidating Trust are insufficient to result in a 100% pro rata distribution to Class 6, Singh Bros Container Services shall make an additional contribution to the Liquidating Trust in an amount sufficient to accomplish a 100% distribution to Class 6. Class 6 is an Impaired Class and Holders of Class 6 Claims are entitled to vote. If Class 5 makes Section 1111(b) Election: $54,999.23. If Class 5 does not make Section 1111(b) Election: $1,517,816.30. Class 6 will receive a distribution of 100% of their allowed claims. Class 8 consists of the equity interests of Kuldip Singh and Surjit Singh in the Debtors. The Class 8 Equity Interests are treated in the Kuldip Chapter 11 Plan and the Surjit Chapter 11 Plan, which provides for a 100% distribution to all classes from projected disposable income. Accordingly, existing equity interests in the Debtors shall be preserved and unaffected by this Plan and in a cram-down scenario the Debtors will seek confirmation pursuant to Bankruptcy Code section 1129(b)(2)(B)(i). The liquidation value of the Debtors' estates depends on the outcome of the Toggle due to the necessity of valuing the All Track Sale Rescission Interest. Regardless, in a Chapter 7 Liquidation, Surjit Singh, Kuldip Singh, and Singh Bros Container Services would not make their respective contributions to the Liquidating Trust as contemplated by the Plan. The value of those contributions will be not less than $1,180,421.87. Because these new value contributions will enable a 100% distribution through the Plan and will not be available to creditors in a hypothetical liquidation, the Plan necessary and conclusively provides creditors a better result than the Debtors' liquidation value. The Liquidating Trust will be funded by an initial transfer of all Available Cash to the Liquidating Trust on the Effective Date. The Debtors estimate that there will be $75,000 Available Cash initially deposited into the Liquidating Trust on the Effective Date. Thereafter, for a total period of 60 months, the Liquidating Trust will be funded by: (i) quarterly deposits of Reorganized Express Net Income, which is projected to be $39,640.00 per month, or $118,920.00 per quarter; (ii) monthly deposits of all projected disposable income of Surjit Singh and Kuldip Singh pursuant to the provisions of the Kuldip Chapter 11 Plan and the Surjit Chapter 11 Plan, which is projected to be $11,414.27 per month; and (iii) monthly contributions from non debtor Singh Bros Container Services in the amount of $5,802.28 per month. A full-text copy of the Disclosure Statement dated March 17, 2025 is available at https://urlcurt.com/u?l=UMmnXf from PacerMonitor.com at no charge. Counsel to the Debtor: Jane Pearson, Esq. Polsinelli PC 1000 Second Avenue, Suite 3500 Seattle, WA 98104 Telephone: (206) 393-5415 Email: jane.pearson@polsinelli.com About Singh Bros Express Singh Bros Express, LLC, operates in the general freight trucking industry. Singh Bros Express and its affiliates, Singh Bros Transport, LLC, and Singh Bros Trucking, LLC, filed Chapter 11 petitions (Bankr. W.D. Wash. Lead Case No. 24-42600) on Nov. 15, 2024. At the time of the filing, Singh Bros Express reported $1 million to $10 million in both assets and liabilities. Judge Mary Jo Heston handles the cases. The Debtors are represented by Jane E. Pearson, Esq., at Polsinelli, PC. SIZZLING PLATTER: Bain Capital Deal No Impact on Moody's 'B3' CFR ----------------------------------------------------------------- Moody's Ratings says Sizzling Platter, LLC's ("Sizzling Platter") pending acquisition by Bain Capital has no impact on its current ratings including its B3 corporate family rating, B3-PD probability of default rating, B3 rating on the backed senior secured notes and negative outlook. The transaction is expected to close in short order. Detailed terms of the transaction have not been disclosed publicly. However, it is Moody's expectations that the acquisition by Bain Capital will result in an increase in debt and leverage. This transaction is a credit positive for Sizzling Platter's existing senior secured note holders, who will be paid in full upon closing of the acquisition. The $350 million 8.5% senior secured notes mature November 2025. Moody's expects to withdraw the ratings on the notes upon repayment. Headquartered in Murray, Utah, Sizzling Platter, LLC owns and operates 468 Little Caesars, 92 Jambas, 176 Wingstop, 31 Dunkin', 7 Sizzler's Steak House, 5 Red Robin Gourmet Burgers, 2 Cinnabon and 33 Jersey Mike's franchised restaurants as of December 29, 2024. Revenue for the twelve-month period ended December 2024 was $1.1 billion. Sizzling Platter is owned by the private equity firm CapitalSpring. SMALL FORTUNE: Seeks to Hire Sasser Law Firm as Attorney -------------------------------------------------------- Small Fortune Hunter, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to employ Sasser Law Firm as attorney. The firm will provide these services: a. providing legal advice with respect to powers and duties as Debtor-in-Possession and the continued operation of its business and management of the property owned; b. preparing and filing of monthly reports, plan of reorganization and disclosure statement; c. preparing on behalf of the Debtor-in-Possession of necessary applications, answers, orders, reports and other legal papers; d. performing all other legal services for debtor as Debtor-in-Possession which may be necessary herein until and through the case's confirmation, dismissal or conversion; e. undertaking necessary action, if any, to avoid liens against the Debtor's property obtained by creditors and to recover preferential payments within 90 days of the filing of the said Petition under Chapter 11; f. performing a search of the public records to locate liens and assess validity; g. representing at hearings, confirmation, and any 2004 examination. The firm will be paid at $350 per hour. Sasser Law Firm will be paid a retainer in the amount of $10,000. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Phillip Sasser, Esq., a partner at Sasser Law Firm, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Phillip Sasser, Esq. Sasser Law Firm 2000 regency Parkway, Suite 230 Carey, NC 27518 Telephone: (919) 319-7400 Facsimile: (919) 657-7400 Email: philip@sasserbankruptcy.com About Small Fortune Hunter, LLC Small Fortune Hunter, LLC, filed a Chapter 11 bankruptcy petition (E.D. Cal. Case No. 25-01203-5) on April 1, 2025. The Debtor hires Sasser Law Firm as counsel. SUNSHINE HOLDINGS: Selling West Palm Beach Property at Auction -------------------------------------------------------------- Sunshine Holdings 2019 LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to sell real property located at 1041 45th Street, West Palm Beach, Florida, 33407, free and clear of liens, interests, and encumbrances. The Debtor's main goal was to attempt 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 Secured Creditor’s consent. However, the Debtors have not been successful in procuring a refinancing or a new investor group despite concerted efforts. The Debtor seeks approval of the bid procedures and intends to retain a qualified broker to conduct the marketing campaign and run the auction of the Property. The Debtor acquired the Property in 2019 with a view toward developing a commercial office space for a medical facility. In an all-too-familiar story, construction and leasing efforts were delayed by the pandemic. The Property is subject to a first mortgage in the original principal sum of $10,850,000 issued by East West Bank. The Debtor designs the Bid Procedures to establish a fair auction process, including benchmarks to become a qualified bidder. The Debtor believes that the Bid Procedures promote a competitive and fair sale process, and should be approved in the exercise of the Debtor's business judgment. About Sunshine Holdings 2019 LLC Sunshine Holdings 2019 LLC is engaged in activities related to real estate. The Debtor sought Chapter 11 protection (Bankr. E.D. N.Y. Case No. 24-44762) on November 14, 2024, listing estimated assets of $1 million to $10 million and estimated liabilities of $10 million to $50 million. The petition was signed by David Goldwasser as VP of restructuring. Judge Elizabeth S. Stong presides over the case. Kevin Nash, Esq., at GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP, represent the Debtor as legal counsel. SWC INDUSTRIES: To Sell Oak Creek Property to Beazer East --------------------------------------------------------- SWC Industries LLC and its affiliates seek permission from the U.S. Bankruptcy Court for the Northern District of California, San Jose Division, to sell real property in a private sale, free and clear of liens, interests, and encumbrances. The Debtors propose to sell a parcel approximately 21 acres located at 9100 South Fifth Avenue in Oak Creek, Wisconsin. The Property constitutes the majority of a 23-acre environmental site designated by the Wisconsin Department of Natural Resources (WDNR) as the former Koppers Tar Plant and Wabash Alloys Site, Facility ID 241379050. The Debtor enters a purchase agreement with Beazer East, Inc. f/k/a Koppers Company, Inc. to purchase the property. The Buyer has a unique interest in the Property. Its predecessor formerly owned the Property, and it has been identified by WDNR as potentially obligated for a portion of the remediation. To that end, the Buyer filed a contingent and unliquidated claim in the amount of $30 million, for costs it may incur in the future with respect to the remediation, and for which it alleges SWC Aluminum and potentially other Debtors are co-liable. The Buyer has also been involved in negotiations among SWC Aluminum, the City and WDNR regarding the remediation. As part of the purchase agreement, , the Buyer will: pay $50,000 in cash to the Seller; assume all remediation and other environmental liabilities with respect to the Property; and indemnify the Debtors with respect to the remediation obligations. In exchange, the Debtors will convey its interest in the Property to the Buyer—together with all related rights and claims of the Debtor and the other Debtors against other parties that may be in part responsible for the remediation—free and clear of all liens, claims, encumbrances, and interests. The lienholders of the Property, JMB Capital Partners Lending, LLC, and WCMC Investments LLC, have consented, or are expected to have consented in advance of the hearing, to the Transaction. About SWC Industries LLC With principal operations in California and Massachusetts, SWC Industries LLC manufactures a range of innovative sealing and logistics equipment -- and offers related services -- that create efficiencies and reduce costs across multiple industries. In addition, the Company's San Diego-based business designs and develops a full suite of software designed to improve warehouse operations. SWC Industries LLC and 12 affiliates sought Chapter 11 protection (Bankr. N.D. Cal. Lead Case No. 24-51721) on Nov. 13, 2024. SWC listed assets and debt of $50 million to $100 million as of the bankruptcy filing. The Debtors tapped Allen Overy Shearman Sterling US LLP as lead restructuring counsel; Binder Malter Harris & Rome-Banks LLP as restructuring co-counsel and local counsel; Getzler Henrich & Associates LLC as financial advisor; and Gordian Group, LLC, as investment banker. Stretto, Inc., is the claims agent. TEXAS AUTO: Seek Subchapter V Bankruptcy in Texas ------------------------------------------------- On April 11, 2025, Texas Auto and Truck Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Texas. According to court filing, the Debtor reports $2,651,915 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Texas Auto and Truck Inc. Texas Auto and Truck Inc., operating as Griffin Motors, is a pre-owned vehicle and RV dealership based in Lockhart, Texas, offering a wide range of inspected, quality vehicles. Texas Auto and Truck Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex.Case No. 25-10509) on April 11, 2025. In its petition, the Debtor reports total assets of $4,113,631 and total liabilities of $2,651,915. The Debtor is represented by Todd Headden, Esq. at HAYWARD PLLC. UNITED FIBER: Hires Value Resources CPA's P.C. as Tax Accountant ---------------------------------------------------------------- United Fiber Comm., Inc. dba United Fiber seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Value Resources CPA's, P.C. as tax accountant. The firm will perform these services and will be paid at these rates: a. assist in the annual tax preparation and review of the joint, holding company, and corporate income tax filings (Federal and California) at $3,900 annually; b. review of monthly reconciliations for three bank accounts (i.e. statements), five credit accounts and payroll at $1,350 a month; c. assist in tax planning, as needed; and d. provide consultation services, as needed at $250 per hour. The firm will be paid a retainer in the amount of $2,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Norma Haddad, a partner at Value Resources CPA's, 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: Norma Haddad Value Resources CPA's, P.C. 160 Via Verde, Ste 200 San Dimas, CA 91773 Tel: (951) 735-9930 Email: norma@valueresourcescpas.com About United Fiber Comm., Inc. dba United Fiber United Fiber Comm., Inc. is a telecommunications contractor in California, with offices in Goleta, Corona, and Vista. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-16470) on October 29, 2024, with $1,663,379 in assets and $8,172,909 in liabilities. Raymond Martinez, chief executive officer, signed the petition. Judge Scott H. Yun oversees the case. The Debtor is represented by Robert P. Goe, Esq., at Goe Forsythe & Hodges, LLP. VIBRANTZ TECHNOLOGIES: Moody's Alters Outlook on 'B3' CFR to Neg. ----------------------------------------------------------------- Moody's Ratings affirmed the B3 Corporate Family Rating of Vibrantz Technologies Inc. and its B3-PD Probability of Default Rating. Moody's also affirmed the B3 ratings on both the $325 million backed senior secured first lien revolving credit facility due 2027 and $2.445 billion backed senior secured first lien term loan due 2029 as well as the Caa2 rating on the $756 million senior unsecured notes due 2030. Moody's also assigned a B3 rating to the incremental $175 million backed senior secured first lien term loan. The new issuance was leverage neutral and helped the company improve liquidity since the proceeds were used to repay revolver borrowings. The rating outlook was changed to negative from stable due to expectations that demand could weaken in 2025, limiting the company's deleveraging and improvement in credit metrics. RATINGS RATIONALE The B3 rating reflects the company's weak credit metrics and exposure to cyclical end markets such as building and construction, durable goods and appliances, industrial, battery and electronics and automotive. Vibrantz Technologies Inc., formed through the combination of Prince International Corporation, Ferro Corporation and ASP Chromaflo Holdings, LP, had leverage of 10.9x on a Moody's adjusted basis in the twelve months ended December 2024 or 8.2x on a pro forma basis excluding merger costs and one time synergy implementation expenses and including run rate synergies. Leverage has been higher than the downgrade trigger since the company was formed in 2022, as benefits of integration were offset by weakness in the company's end markets and resulted in weaker than expected earnings and cash flows. 2024 prerformance was largely in line with expectations as adjusted earnings improved on the back of pricing and productivity improvements which more than offset continued weak volumes in some markets. The company guided to improved earnings in 2025 on the back of higher volumes, prices and productivity gains, offset by forex headwinds. Given that the majority of the company's end markets are industrial, Moody's now anticipatse weaker volumes in 2025 in the wake of the evolving tariff regime that could result in higher costs and changes in trade flows. Moody's do not expect the company's own operations to be significantly impacted by tariffs, but demand from its customers may decline amid uncertaintly and potential economic slowdown. Moody's are now assuming that lower volumes would likely keep leverage above 8 times in 2025 despite completed restructuring initiatives. High restructuring costs, although projected to decline in 2025, depress already weak cash flow due to the levered balance sheet and high interest costs. This is the major constraining factor for the rating and any deterioration of liquidity would lead to a change in the rating. However, the scale, currently adequate liquidity and long-term debt maturity profile support the rating. The rating also benefits from the company's large asset base, a broad range of product offerings, diverse end markets and completed restructuring. Vibrantz's nearly 20% EBITDA margin reflects its core competencies in particle engineering, color solutions, ceramic and glass coatings. The company has a large customer base and global footprints. Furthermore, Vibrantz participates in several higher growth potential end markets including EVs, the Internet of Things (IoT) and semiconductors, however these markets are currently experiencing some headwinds. LIQUIDITY Vibrantz has adequate liquidity with available cash of $52 million on the balance sheet and approximately $187 million of availability on the $325 million revolver following the term loan issuance. The company is projected to generate minimal free cash flow in 2025. The $325 million revolving credit facility due in April 2027 contains a springing first lien leverage ratio covenant of 7.2x, if outstanding borrowings exceed 35% at the end of the quarter. The credit agreement allows for adding run-rate synergies to EBITDA in the calculation of the first lien leverage ratio. The company was in compliance with the covenant at the end of December with the first lien net leverage of 5.5x. The company also has $140 million asset-securitization facility and a EURO 10 million securitization facility, the majority of which was drawn at the end of December. There are no near-term maturities and amortization payments of about $24.4 million per year. The credit facility is secured by substantially all domestic assets and the pledge of stock on foreign assets leaving some alternative liquidity. STRUCTURAL CONSIDERATIONS The B3 rating on the company's senior secured credit facilities, consisting of a $325 million revolving credit facility due in April 2027, $2.445 billion senior secured term loan due in April 2029 and a $175 million incremental term loan due April 2029, equivalent to the B3 CFR, reflects the priority interest in substantially all of the company's domestic assets. The Caa2 rating on the $756 million senior unsecured notes due in February 2030 consider the preponderance of secured debt in the capital structure with priority ranking that weakens recovery prospects in the event of a default. The negative outlook reflects increasing risks that earnings may stagnate or fall in 2025 limiting the company's deleveraging. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade the ratings if the company is able to successfully deliver the cost synergies, adjusted Debt/EBITDA improves below 5.5x, and free cash flow-to-debt (FCF/Debt) is sustained above 10%. Moody's would likely downgrade the ratings if earnings decline in 2025 and the company fails to improve Debt/EBITDA toward mid 7x. Moody's would also downgrade the ratings if liquidity deteriorates or the company completes a large debt-financed acquisition or shareholder return. Vibrantz Technologies Inc. headquartered in Houston, TX, is a manufacturer of mineral-based specialty additives, pigments and colorants, functional ingredients for specialty coatings and glass and porcelain enamels. The company specializes in manganese, chromium, iron oxide, lithium, cobalt and zircon based products and serves a wide range of end markets including building & construction, electronics, industrial applications and the transportation sector. Vibrantz operates in three business segments: Advanced Materials, Colors Solutions and Performance Coatings. Vibrantz is owned by private equity sponsor, American Securities. The company was formed as a result of a merger between two portfolio companies owned by American Securities and an acquisition of Ferro Corporation in April 2022. American Securities has owned the legacy Prince International Corporation business since 2018 and the legacy Chromaflo business since 2016. Vibrantz generated revenues of approximately $1.75 billion in the twelve months ended December 2024. The principal methodology used in these ratings was Chemicals published in October 2023. VOLITIONRX LTD: Secures $2.3 Million in Direct Offering ------------------------------------------------------- VolitionRx Limited disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company, entered into a securities purchase agreement with several investors, which provides for the issuance and sale, in a registered direct offering by the Company, of: (i) 2,363,636 shares of the Company's common stock, par value $0.001 per share, to certain of its directors and executive officers, and certain of its existing stockholders at an offering price of $0.55 per share, and (ii) 1,739,087 shares of common stock, together with common stock purchase warrants to purchase up to 1,739,087 shares of common stock, at a combined offering price of $0.55 per Warrant Investor Share and accompanying Warrant, to certain other existing stockholders of the Company and new investors. Each Warrant has an exercise price per share of $0.66, and is exercisable on or after March 26, 2025 through and until March 26, 2030. The Insiders did not receive any Warrants in the Offering. The Shares, the Warrants, and the shares of common stock issuable upon exercise of the Warrants, if any, issued in this offering are collectively referred to herein as the "Securities." The Securities were offered and sold directly by the Company to the investors in the Offering without a placement agent and pursuant to a Registration Statement on Form S-3 originally filed on September 24, 2021, as amended (including the prospectus forming a part of such Registration Statement) (File No. 333-259783), with the Securities and Exchange Commission under the Securities Act of 1933, as amended, and declared effective by the SEC on November 8, 2021. The Company filed a prospectus supplement with the SEC on March 26, 2025, in connection with the Offering. The gross proceeds to the Company from the Offering are approximately $2.3 million, before deducting expenses payable by the Company. The Company anticipates using the net proceeds from the Offering for research and continued product development, clinical studies, product commercialization, working capital, and other general corporate purposes. A full-text copy of the Form of Securities Purchase Agreement is available at: https://tinyurl.com/39w4c42w About Volition Henderson, Nev.-based VolitionRx Limited is a multi-national epigenetics company. It has patented technologies that use chromosomal structures, such as nucleosomes, and transcription factors as biomarkers in cancer and other diseases. Draper, Utah.-based Sadler, Gibb & Associates, LLC, the Company's auditor since 2011, issued a "going concern" qualification in its report dated March 31, 2025, attached in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has suffered recurring losses from operations, negative cash flows from operations and minimal revenues which raises substantial doubt about its ability to continue as a going concern. WELLPATH HOLDINGS: PCO Reports No Staffing Challenges ----------------------------------------------------- Susan Goodman, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Southern District of Texas her second report regarding the quality of patient care provided by Wellpath Holdings, Inc. and certain of its affiliates. During the period from Jan. 21 to March 20, the PCO visited an additional 24 distinct locations across eight states for the Local Government and State/Federal divisions. The PCO does not believe patient care is adversely implicated as contemplated under Section 333 of the Bankruptcy Code while at this second interim report, it would be an overstatement to interpret this finding as a broad endorsement of stability across a very large organization. Over the course of the PCO's site visits, she has witnessed a range of scenarios spanning from what she would describe as highly functional operations to operations facing various challenges, including, without limitation, antiquated plant issues or custody challenges beyond the healthcare providers' control and some with material numbers of unfilled open healthcare positions. The PCO has not observed any leadership who is disengaged in managing their staffing challenges. Leaders are covering shifts, often night shifts. Recruitment efforts continue. Staff are working overtime. Temporary travel staff are requested, although not always available. If chronic care visits cannot all be completed exactly on time, clinician teams triage visit scheduling by clinical priority as is done in the community setting. The PCO has some concern that bankruptcy cash collateral constraints could slow or limit the timing of these adjustments to the extent that some locations have reported needing pay rate adjustments to remain competitive and successful in staff recruitment. The PCO further worries about the optics associated with sizeable administrative and key personnel costs juxtaposed to open requests for operational position pay and/or staff matrix adjustments. Ms. Goodman will continue to engage in site visits, follow-up calls, docket monitoring and follow-up, and efforts to find meaningful data benchmarks to assist in monitoring care delivery. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=6YseS2 from Epiq Corporate Restructuring, LLC, claims agent. The ombudsman may be reached at: Susan N. Goodman, RN JD Pivot Health Law, LLC P.O. Box 69734 Oro Valley, AZ 85737 Ph: 520.744.7061|Fax: 520.575.4075 sgoodman@pivothealthaz.com About Wellpath Holdings Wellpath Holdings, Inc., formerly known as CCS-CMGC Holdings, Inc., is a provider of medical and mental healthcare in jails, prisons, and inpatient and residential treatment facilities. Wellpath Holdings and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 24-90533) on Nov. 11, 2024. Timothy Dragelin, chief restructuring officer and chief financial officer, signed the petitions. At the time of the filing, the Debtors reported $1 billion to $10 billion in assets and liabilities. Judge Alfredo R. Perez oversees the cases. The Debtors tapped Marcus A. Helt, Esq. at McDermott Will & Emery, LLP as bankruptcy counsel; FTI Consulting, Inc., as financial advisor; and Lazard Freres & Co., LLC and MTS Partners, LP as investment banker. The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of Wellpath Holdings, Inc. and its affiliates. Proskauer Rose LLP represents the Committee as its co-counsel. Huron Consulting Services LLC and Dundon Advisers LLC were selected as the Committee's financial advisor. X4 PHARMACEUTICALS: Net Loss Narrows to $37.5 Million in 2024 ------------------------------------------------------------- X4 Pharmaceuticals, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $37.5 million on $2.6 million of revenues for the year ended Dec. 31, 2024, compared to a net loss of $101.2 million on zero revenue for the year ended Dec. 31, 2023. Boston, Mass.-based PricewaterhouseCoopers LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated Mar. 25, 2025, citing that the Company has incurred operating losses and negative cash flows from operations since inception that raise substantial doubt about its ability to continue as a going concern. Although the Company has an approved drug product, sales of the Company's drug product over the next 12 months will not be sufficient to fund the Company's operating expenses. Since inception, the Company has incurred significant operating losses and negative cash flows from operations. As of December 31, 2024, the Company had $102.1 million of cash, cash equivalents and short-term marketable securities and an accumulated deficit of $515.4 million. For the year ended December 31, 2024, the Company's net losses were $37.5 million and net cash used in operating activities of $130.9 million. The Company has a covenant under its Second Amended and Restated Loan and Security Agreement, as amended, (the "Hercules Loan Agreement") with Hercules Capital Inc., that requires that the Company maintain a minimum level of cash of $15 million, which represents 20% of outstanding borrowings under the Hercules Loan Agreement. Based on its current operating plan, which includes estimates of anticipated cash inflows from product sales and cash outflows from operating expenses, the Company believes there is a risk that it will not meet the conditions of the Minimum Cash Covenant within the 12-month period from the issuance date of these consolidated financial statements. In such case, Hercules could accelerate the principal payments on the Company's outstanding loans and the Company potentially would not have sufficient cash, cash equivalents and short-term marketable securities to settle such obligations. Accordingly, management has concluded that this condition meets the standard for raising substantial doubt about the Company's ability to continue as a going concern. The Company does not have adequate financial resources to fund its forecasted operating costs for at least one year after the date that these consolidated financial statements are issued. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. Accordingly, the consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. To alleviate the risk that the Company violates the Minimum Cash Covenant and to finance its future operations, the Company will need to raise additional capital, which cannot be assured, and/or modify such Minimum Cash Covenant. Unless and until the Company reaches profitability in the future, it will require additional capital to fund its operations, which could be raised through a combination of equity offerings, debt financings, other third-party funding, marketing and distribution arrangements, or other collaborations and strategic alliances. If the Company is unable to obtain funding, it could be forced to delay, reduce, or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, which would adversely affect its business prospects, or it may be unable to continue operations. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/2um2sexr About X4 Pharmaceuticals Boston, Mass.-based X4 Pharmaceuticals, Inc. is a biopharmaceutical company focused on discovering, developing, and commercializing novel therapeutics for the treatment of rare diseases and those with limited treatment options, particularly conditions resulting from immune system dysfunction. As of Dec. 31, 2024, the Company had $146.4 million in total assets, $124.3 million in total liabilities, and a total stockholders' equity of $22.1 million. ZAHRCO ENTERPRISES: Hires Paragon Law LLC as Legal Counsel ---------------------------------------------------------- Zahrco Enterprises, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Paragon Law, LLC as counsel. The firm will provide these services: (a) advise the Debtor with respect to their powers and duties as debtor and debtor-in-possession in the continued management and operation of his business and properties; (b) attend meetings and negotiate with representatives of creditors and other parties-in-interest and advise and consult on the conduct of the cases, including all of the legal and administrative requirements of operating in Chapter 11; (c) advise the Debtor on matters relating to the evaluation of the assumption, rejection or assignment of unexpired leases and executory contracts; (f) provide advice to the Debtor with respect to legal issues arising in or relating to the Debtor's ordinary course of business; (g) take all necessary action to protect and preserve the Debtor's estates, including the prosecution of actions on their behalf, the defense of any actions commenced against the estates, negotiations concerning all litigation in which the Debtor may be involved and objections to claims filed against the estate; (h) prepare on behalf of the Debtor all motions, applications, answers, orders, reports and papers necessary to the administration of the estates; (i) negotiate and prepare on the Debtor's behalf a plan of reorganization and all related agreements and/or documents, and take any necessary action on behalf of the Debtor to obtain confirmation of such plan; (j) attend meetings with third parties and participate in negotiations with respect to the above matters; (k) appear before this Court, and the U.S. Trustee, to protect the interests of the Debtors' estates before such courts and the U.S. Trustee; and (l) perform all other necessary legal services and provide all other necessary legal advice to the Debtors in connection with these Chapter 11 cases. The firm will be paid at these rates: Kristopher Aungst, Esq. $595 per hour Michael Foster, Esq. $495 per hour Paralegals $150 per hour The firm will be paid a retainer in the amount of $25,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Aungst 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: Kristopher Aungst, Esq. Paragon Law, LLC Executive Suites 2665 Coconut Grove, FL 33133-5402 Tel: (305) 812-5443 About Zahrco Enterprises, Inc. Zahrco Enterprises Inc. operates two restaurants located in Coral Gables, Florida, on leased properties. Zahrco Enterprises Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla.Case No. 25-13628) on April 2, 2025. In its petition, the Debtor reports total assets of $72,679 and total liabilities of $2,591,821. Honorable Bankruptcy Judge Corali Lopez-Castro handles the case. The Debtor is represented by Kris Aungst, Esq. at PARAGON LAW, LLC. ZARIFIAN ENTERPRISES: Creditors to Get Proceeds From Liquidation ---------------------------------------------------------------- Zarifian Enterprises, LLC, filed with the U.S. Bankruptcy Court for the Northern District of Illinois a Plan of Liquidation for Small Business dated March 17, 2025. The Debtor is an Illinois limited liability company incorporated in and operating under the laws of the State of Illinois, and has been in operation since 2021 with its original principal place of business located in Tinley Park, Illinois. The Debtor is a mill working company. Greg Zarifian is President and owns forty-nine percent of the company, while Amy Jensen owns fifty-one percent. The Debtor has not operated since April 2024. This Plan of Liquidation proposes to pay creditors of the Debtor from the liquidation and monetization of its assets. The assets to be liquidated include, but are not limited to: * Accounts Receivable. As of April 2024, the Debtor's accounts receivable total $57,000.00 (the "Accounts Receivable") from three accounts, one of which includes the Debtor's Landlord. * Inventory, Equipment, Tools. The proceeds of the sale of inventory, equipment and tools scheduled for sale via an online auction to be held no later than May 2025. * Avoidance and Litigations Claims. Net Proceeds of Litigation Claims including Avoidance Actions. Class 3 consists of General Unsecured Non-Priority Claims. General Unsecured Non-Priority Claims aggregate $2,218,673.26, as set forth on the Allowed Unsecured Non-Priority Claims Register (the "Claims Register"). To the extent that Funds are available after the payment of Priority Tax Claims, Class 3 Claims shall receive a pro-rata distribution from the remaining Funds. The Debtor does not expect there to be funds available for the payment of Class 3 General Unsecured Non Priority Claims. Class 3 claims are impaired under the Plan. On the Effective Date, the Debtor shall administer the Bankruptcy Case for the sole purpose of making distributions described in the Plan. Greg Zarifian shall serve as "Disbursing Agent" for all Distributions required by the Plan. A full-text copy of the Liquidating Plan dated March 17, 2025 is available at https://urlcurt.com/u?l=HR15nO from PacerMonitor.com at no charge. Counsel to the Debtor: Gregory K. Stern, Esq. Dennis E. Quaid, Esq. Monica C. O'Brien, Esq. Rachel S. Sandler, Esq. Gregory K. Stern, P.C. 53 West Jackson Boulevard, Suite 1442 Chicago, Illinois 60604 Telephone: (312) 427-1558 About Zarifian Enterprises Zarifian Enterprises, LLC, is a mill-working company incorporated in and operating under the laws of the State of Illinois. The Debtor filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 25-00188) on May 2, 2024. Judge David D. Cleary presides over the case. Gregory K. Stern, P.C., is the Debtor's legal counsel. ZIPS CAR WASH: U.S. Trustee Challenges Chapter 11 Plan Releases --------------------------------------------------------------- Clara Geoghegan of Law360 Bankruptcy Authority reports that the Office of the United States Trustee urged a Texas bankruptcy judge to disapprove Zips Car Wash's revised Chapter 11 plan -- intended to eliminate roughly $279 million in debt -- arguing that it includes nonconsensual third‑party releases. 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 Feb. 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. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Rosalind Hunter Roberts Bankr. N.D. Cal. Case No. 25-40607 Chapter 11 Petition filed April 8, 2025 represented by: Ruth Auerbach, Esq. In re Lynda Fay Layton Bankr. N.D. Ill. Case No. 25-05385 Chapter 11 Petition filed April 8, 2025 represented by: Gregory Stern, Esq. In re 40 Starr Ln LLC Bankr. D. Rhode Island Case No. 25-10281 Chapter 11 Petition filed April 8, 2025 See https://www.pacermonitor.com/view/6DLKUNY/40_Starr_Ln_LLC__ribke-25-10281__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Reginald S. Hutcherson Bankr. E.D. Cal. Case No. 25-21691 Chapter 11 Petition filed April 9, 2025 In re Reginald Darnell Holmes Bankr. N.D. Ohio Case No. 25-50607 Chapter 11 Petition filed April 9, 2025 In re Colonial Mills, Inc. Bankr. D. Rhode Island Case No. 25-10286 Chapter 11 Petition filed April 9, 2025 See https://www.pacermonitor.com/view/ACU5O7I/Colonial_Mills_Inc__ribke-25-10286__0001.0.pdf?mcid=tGE4TAMA represented by: Russell D. Raskin, Esq. RASKIN & BERMAN E-mail: mail@raskinberman.com In re Kim R Ellington and Sharon L Ellington Bankr. E.D. Ark. Case No. 25-11232 Chapter 11 Petition filed April 10, 2025 represented by: Anh-Thu Doan, Esq. In re Mister Chimney Cleaning and Repairs, Inc. Bankr. N.D. Cal. Case No. 25-30283 Chapter 11 Petition filed April 10, 2025 See https://www.pacermonitor.com/view/QBUNU4Y/Mister_Chimney_Cleaning_and_Repairs__canbke-25-30283__0001.0.pdf?mcid=tGE4TAMA represented by: Ryan C. Wood, Esq. LAW OFFICES OF RYAN C. WOOD, INC. E-mail: Ryan@westcoastbk.com In re Sergiu Anton Bica and Livia Bica Bankr. N.D. Ga. Case No. 25-53966 Chapter 11 Petition filed April 10, 2025 represented by: Amanda Milner, Esq. In re Devorah Alevsky Bankr. E.D.N.Y. Case No. 25-41758 Chapter 11 Petition filed April 10, 2025 represented by: Joshua Bronstein, Esq. In re Raleg Marcy Group Inc Bankr. E.D.N.Y. Case No. 25-41770 Chapter 11 Petition filed April 10, 2025 See https://www.pacermonitor.com/view/2JFF6EI/Raleg_Marcy_Group_Inc__nyebke-25-41770__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Chandler Solutions, LLC Bankr. S.D. W.Va. Case No. 25-20075 Chapter 11 Petition filed April 10, 2025 See https://www.pacermonitor.com/view/P4XBC2Y/Chandler_Solutions_LLC__wvsbke-25-20075__0001.0.pdf?mcid=tGE4TAMA represented by: Joseph W. Caldwell, Esq. CALDWELL & RIFFEE E-mail: jcaldwell@caldwellandriffee.com In re Acceptional Minds LLC Bankr. E.D. Wisc. Case No. 25-21926 Chapter 11 Petition filed April 10, 2025 See https://www.pacermonitor.com/view/WRTHKIY/Acceptional_Minds_LLC__wiebke-25-21926__0001.0.pdf?mcid=tGE4TAMA represented by: John W. Menn, Esq. SWANSON SWEET LLP E-mail: jmenn@swansonsweet.com In re Wave Asian Bistro, LLC Bankr. M.D. Fla. Case No. 25-02112 Chapter 11 Petition filed April 11, 2025 See https://www.pacermonitor.com/view/QBUNWTA/Wave_Asian_Bistro_LLC__flmbke-25-02112__0001.0.pdf?mcid=tGE4TAMA represented by: Jeffrey S. Ainsworth, Esq. BRANSONLAW, PLLC E-mail: jeff@bransonlaw.com In re Wave Sushi Maitland, LLC Bankr. M.D. Fla. Case No. 25-02113 Chapter 11 Petition filed April 11, 2025 See https://www.pacermonitor.com/view/QI532JA/Wave_Sushi_Maitland_LLC__flmbke-25-02113__0001.0.pdf?mcid=tGE4TAMA represented by: Jeffrey S. Ainsworth, Esq. BRANSONLAW, PLLC E-mail: jeff@bransonlaw.com In re 9270 W. Bay Harbor Dr. LLC Bankr. S.D. Fla. Case No. 25-13979 Chapter 11 Petition filed April 11, 2025 See https://www.pacermonitor.com/view/67T54KI/9270_W_Bay_Harbor_Dr_LLC__flsbke-25-13979__0001.0.pdf?mcid=tGE4TAMA represented by: Mark S. Roher, Esq. LAW OFFICE OF MARK S. ROHER, P.A. E-mail: mroher@markroherlaw.com In re Andy Chung Bankr. N.D. Ga. Case No. 25-54006 Chapter 11 Petition filed April 11, 2025 represented by: Benjamin Keck, Esq. In re Erik Peter Castle Bankr. W.D. La. Case No. 25-80213 Chapter 11 Petition filed April 11, 2025 represented by: Thomas Willson, Esq. In re 660 Sherman LLC Bankr. E.D. Mich. Case No. 25-43708 Chapter 11 Petition filed April 11, 2025 See https://www.pacermonitor.com/view/4PEO6DQ/660_Sherman_LLC__miebke-25-43708__0001.0.pdf?mcid=tGE4TAMA represented by: George E. Jacobs, Esq. BANKRUPTCY LAW OFFICES E-mail: george@bklawoffice.com In re Lil Genies Daycare LLC Bankr. E.D.N.Y. Case No. 25-41811 Chapter 11 Petition filed April 11, 2025 See https://www.pacermonitor.com/view/7W46AAI/Lil_Genies_Daycare_LLC__nyebke-25-41811__0001.0.pdf?mcid=tGE4TAMA represented by: Nico G. Pizzo, Esq. ROSEN, TSIONIS & PIZZO, PLLC E-mail: npizzo@ajrlawny.com In re New Horizon Medical P.C. Bankr. E.D.N.Y. Case No. 25-41802 Chapter 11 Petition filed April 11, 2025 See https://www.pacermonitor.com/view/7HMZ34I/New_Horizon_Medical_PC__nyebke-25-41802__0001.0.pdf?mcid=tGE4TAMA represented by: Alla Kachan, Esq. LAW OFFICES OF ALLA KACHAN, P.C. E-mail: alla@kachanlaw.com In re Holland Patton Bankr. E.D.N.C. Case No. 25-01329 Chapter 11 Petition filed April 11, 2025 represented by: Jade Felder-Campbell, Esq. In re Keystone Passionate Care LLC Bankr. M.D. Pa. Case No. 25-01004 Chapter 11 Petition filed April 11, 2025 See https://www.pacermonitor.com/view/VEAW32Y/Keystone_Passionate_Care_LLC__pambke-25-01004__0001.0.pdf?mcid=tGE4TAMA represented by: Robert E. Chernicoff, Esq. CUNNINGHAM, CHERNICOFF & WARSHAWSKY PC In re SF Technologies Inc Bankr. M.D. Tenn. Case No. 25-01554 Chapter 11 Petition filed April 11, 2025 See https://www.pacermonitor.com/view/7TTXPNA/SF_Technologies_Inc__tnmbke-25-01554__0001.0.pdf?mcid=tGE4TAMA represented by: Robert J. Gonzales, Esq. EMERGELAW, PLC E-mail: ecf@emerge.law In re SF Technologies Inc. Bankr. M.D. Tenn. Case No. 25-01558 Chapter 11 Petition filed April 11, 2025 See https://www.pacermonitor.com/view/KA6CD7A/SF_Technologies_Inc__tnmbke-25-01558__0001.0.pdf?mcid=tGE4TAMA represented by: Robert J. Gonzales, Esq. EMERGELAW, PLC E-mail: ecf@emerge.law In re Lojerky, Inc. Bankr. N.D. Cal. Case No. 25-50519 Chapter 11 Petition filed April 13, 2025 See https://www.pacermonitor.com/view/JIRLY5Y/Lojerky_Inc__canbke-25-50519__0001.0.pdf?mcid=tGE4TAMA represented by: Vinod Nichani, Esq. NICHANI LAW FIRM E-mail: vinod@nichanilawfirm.com In re Raymond Martin Camarillo Bankr. C.D. Cal. Case No. 25-13052 Chapter 11 Petition filed April 14, 2025 represented by: Onyinye Anyama, Esq. In re Amit Syal and Reena Mistry Bankr. C.D. Cal. Case No. 25-13030 Chapter 11 Petition filed April 14, 2025 represented by: Ron Bender, Esq. In re Brian Wayne Brogie Bankr. E.D. Cal. Case No. 25-21742 Chapter 11 Petition filed April 14, 2025 In re Michael Jerome Lickiss and Sarah Ferrero Lickiss Bankr. N.D. Cal. Case No. 25-40642 Chapter 11 Petition filed April 14, 2025 represented by: Julie Rome-Banks, Esq. In re Silver MCA Bankr. N.D. Cal. Case No. 25-40631 Chapter 11 Petition filed April 14, 2025 See https://www.pacermonitor.com/view/TNEH3HQ/Silver_MCA__canbke-25-40631__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Lily616, LLC Bankr. M.D. Fla. Case No. 25-01176 Chapter 11 Petition filed April 14, 2025 See https://www.pacermonitor.com/view/GLXPIJA/Lily616_LLC__flmbke-25-01176__0001.0.pdf?mcid=tGE4TAMA represented by: Bryan K. Mickler, Esq. LAW OFFICES OF MICKLER & MICKLER, LLP E-mail: bkmickler@planlaw.com In re Hugh Brock Showalter Bankr. M.D. Fla. Case No. 25-01181 Chapter 11 Petition filed April 14, 2025 represented by: Michael Stavros, Esq. In re Timothy M. Deany Bankr. N.D. Ill. Case No. 25-05728 Chapter 11 Petition filed April 14, 2025 represented by: Joel Schechter, Esq. In re Regge Eugune Walker Bankr. S.D. Ill. Case No. 25-40170 Chapter 11 Petition filed April 14, 2025 represented by: Bradley Olson, Esq. In re Janice Claire Virtue Bankr. S.D.N.Y. Case No. 25-22309 Chapter 11 Petition filed April 14, 2025 represented by: Kendra Harris, Esq. In re Haskell Griffin Bankr. W.D. Tex. Case No. 25-10513 Chapter 11 Petition filed April 14, 2025 represented by: Todd Headden, Esq. In re Susanna Solveig Alan Bankr. M.D. Fla. Case No. 25-02340 Chapter 11 Petition filed April 15, 2025 represented by: M. Ellen, Esq. In re Lloyd Stern and Jan Stern Bankr. M.D. Fla. Case No. 25-02358 Chapter 11 Petition filed April 15, 2025 represented by: Sheila Norman, Esq. In re Passmore Ventures LLC Bankr. E.D. Va. Case No. 25-10765 Chapter 11 Petition filed April 15, 2025 See https://www.pacermonitor.com/view/QFU6TOQ/PASSMORE_VENTURES_LLC__vaebke-25-10765__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se ********* 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. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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