/raid1/www/Hosts/bankrupt/TCR_Public/250418.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, April 18, 2025, Vol. 29, No. 107
Headlines
145 NAVARRO: Hires Newmark Valuation & Advisory as Appraiser
1808 MAGINN DR: Case Summary & One Unsecured Creditor
201 E 15TH OWNERS: Foreclosure Sale on May 6, 2025
23ANDME HOLDING: Aims to Stop Canadian Data-Breach Lawsuits
23ANDME HOLDING: Eyes OTC Trading After Bankruptcy Filing
AFFINITY INTERACTIVE: Moody's Cuts CFR to Caa1, Outlook Negative
AIR TRANSPORT: S&P Withdraws 'BB' Long-Term Issuer Credit Rating
ALLIED PROPERTIES: Moody's Withdraws 'Ba1' Corporate Family Rating
ALTRAIN MEDICAL: Gets OK to Hire Keery McCue PLLC as Counsel
AMERICAN DREAM: Gets OK to Hire SL Biggs as Accountant
AMERICAN REFRACTORY: Hires Proffitt & Associates as Accountant
ANNALEE DOLLS: Section 341(a) Meeting of Creditors on May 15
APPLIED ENERGETICS: Postes 2024 Net Loss of $9.2 Million
ASHLEY SELMAN: Taps Barrett Law/Cuneo Gilbert as Special Counsel
ASHLEY SELMAN: Taps Merkel & Cocke/Lewis & Lewis as Special Counsel
ATLANTIC NATURAL: Court OKs Interim Use of Cash Collateral
AVILLA MOTOR: Gets OK to Use Cash Collateral
AVISON YOUNG: Moody's Rates New $37MM Bank Credit Facility 'B1'
BCP VI SUMMIT: S&P Assigns 'B' ICR, Outlook Stable
BEVERLY COMMUNITY: Trustee Taps Verita Global as Claims Agent
BEYOND AIR: NeuroNOS Secures $2M to Develop Autism Therapy
BIOXCEL THERAPEUTICS: Going Concern Doubt After $59.6M Loss in 2024
BLH TOPCO: U.S. Trustee Appoints Creditors' Committee
CALUMET INC: Moody's Assigns 'Caa1' CFR, Outlook Negative
CASTLE US: Obtains $250MM Funding, Extends Debt Deadlines
CB POLY: S&P Alters Outlook to Negative, Affirms 'B' ICR
CC 1400 ALICEANNA: Taps Whiteford Taylor & Preston as Attorney
CHEMOURS CO: S&P Affirms 'BB-' ICR, Outlook Negative
CIBUS INC: CLO Holds 99,419 Class A Shares, 92,010 Stock Options
CIBUS INC: SVP Discloses 93,730 Shares, 41,000 Stock Options
CIFC FALCON 2020: S&P Lowers Class E Notes Rating to 'B+ (sf)'
COLD SPRING: Seeks to Hire Schwartz Sladkus as Special Counsel
CONNEXA SPORTS: Taps Enrome to Replace Bush & Associates as Auditor
CONUMA RESOURCES: S&P Cuts ICR to 'SD' on Distressed Restructuring
CRYPTO COMPANY: Delays 2024 10-K Filing Due to Limited Resources
CTN HOLDINGS: U.S. Trustee Appoints Creditors' Committee
D2 GOVERNMENT: Seeks Subchapter V Bankruptcy in North Carolina
DATAVAULT AI: NYIAX Holds 5.1% Equity Stake
DEL RIO PARKS: Taps Mr. Landman LLC as Real Estate Broker
DEL VALLE IMPORT: Seeks to Hire Alla Kachan P.C. as Attorney
DEQSER LLC: April 21 Deadline Set for Panel Questionnaires
DR. POWER: Amends Several Secured Claims Pay; Files Amended Plan
DT BUILDERS: Updates Restructuring Plan Disclosures
E.W. SCRIPPS: Fitch Hikes LongTerm IDR to 'CCC-' on Closure of TSA
E.W. SCRIPPS: S&P Upgrades ICR to 'CCC+', Outlook Negative
ECTUL HOLDINGS: U.S. Trustee Unable to Appoint Committee
ELEMENTS UES: Court Extends Cash Collateral Access
ENGLOBAL CORP: Delays Annual Report Due to Chapter 11 Filing
EXELA TECHNOLOGIES: Reports 4.98% Stake in XBP Europe
F21 OPCO: Seeks to Hire Ordinary Course Professionals
FAIRFIELD, IL: S&P Lowers GO Debt Rating to 'BB', Outlook Stable
FAITH ELECTRIC: Seek to Tap Blackwood Law Firm as Legal Counsel
FAYETTE GROUP: Seeks to Hire McNamee Hosea as Bankruptcy Counsel
FIRST CLASS MOVING: Seeks Chapter 11 Bankruptcy in Florida
FOOTBALL NATION: U.S. Trustee Appoints Creditors' Committee
FOUR HATS: Case Summary & 20 Largest Unsecured Creditors
FRANCHISE GROUP: To Sell Vitamin Shoppe Retail Biz for $193.5MM
FRANCO HAULING: Gets OK to Use Cash Collateral Until May 9
FTAI INFRASTRUCTURE: Moody's Cuts CFR to B3, Outlook Negative
GFL ENVIRONMENTAL: Moody's Cuts Rating on $1BB Unsec. Notes to Ba3
GFL ENVIRONMENTAL: S&P Raises Senior Unsecured Notes Rating to 'BB'
GOL LINHAS: Extends Exit Funding Deadline Due to Trump Tariffs
HALL LABS: U.S. Trustee Appoints Creditors' Committee
HERITAGE HOTELS: Taps Spire Consulting, J.S. Held as Consultants
HOOTERS OF AMERICA: U.S. Trustee Appoints Creditors' Committee
HOSPITALITY AT YORK: Seeks Cash Collateral Access
IDEANOMICS INC: Seeks to Extend Plan Exclusivity to August 1
IMERYS TALC: Insurers Call for Italian Unit Dismissal from Chap. 11
JAG PUBLIC: Seeks to Hire Lane Law Firm PLLC as Counsel
JP MORGAN 2025-3: Fitch Assigns 'B-(EXP)sf' Rating on Cl. B-2 Certs
KIB1 LLC: U.S. Trustee Unable to Appoint Committee
KING WASH: Hires Colliers International as Real Estate Broker
KOGA LLC: Seeks to Hire Phillip K. Wallace PLC as Counsel
KRAIG BOCRAFT: Reports $3M Loss in 2024, Faces Going Concern Doubt
KTRV LLC: U.S. Trustee Appoints Creditors' Committee
LABOR LAW: Seeks to Hire Morris Anderson as Financial Advisor
LABOR LAW: Seeks to Hire Wolfson Bolton Kochis as Counsel
LAKE SPOFFORD: U.S. Trustee Unable to Appoint Committee
LAW OFFICE OF GEORGE: Seeks to Tap Samuel L. Yellen as Counsel
LEISURE INVESTMENTS: April 22 Deadline for Panel Questionnaires
LIFESTYLE BRANDS: Lifestyle Unsecured Claims to Split $37K
LSF COACHING: Gets Approval to Hire Havner Law Firm as Attorney
MAWSON INFRASTRUCTURE: Reports $46.3M Net Loss in 2024
MCF CLO 10: S&P Assigns BB- (sf) Rating on Class E-R Notes
MERIDIANLINK INC: Moody's Assigns 'B2' CFR, Outlook Stable
MIDWEST VETERINARY: S&P Withdraws 'B-' Issuer Credit Rating
MIRACLE RESTAURANT: Amends First Citizens & Pawnee Secured Claims
MISSION POINT: Case Summary & 20 Largest Unsecured Creditors
MJM LANDSCAPE: Seeks Cash Collateral Access Until July 31
MOUNTAIN PROVINCE: S&P Upgrades ICR to 'CCC' on Debt Refinancing
MULBERRY GROUP: Case Summary & 11 Unsecured Creditors
MUNAWAR LAW: Seeks to Hire Ronald D. Weiss P.C. as Attorney
NAKED JUICE: S&P Lowers ICR to 'CC' on Announced Debt Restructuring
NATGASOLINE LLC: S&P Assigns 'BB-' Rating on Secured Term Loan B
NEW FORTRESS: Fitch Lowers IDR to 'B-', On Watch Negative
NEW LEDA LANES: U.S. Trustee Unable to Appoint Committee
NIKOLA CORP: Comm. Taps FTI Consulting as Financial Advisor
NIKOLA CORP: Committee Taps Ducera as Investment Banker
NIKOLA CORP: Committee Taps Morris James LLP as Co-Counsel
NIKOLA CORP: Committee Taps Morrison & Foerster as Counsel
NLC PRODUCTS: Section 341(a) Meeting of Creditors on May 13
NUEVA VISTA: Hires Michael G. Spector as Legal Counsel
NXT ENERGY: 2024 Revenue Falls 70% to C$0.64 Million
OEG BORROWER: Moody's Affirms 'B2' CFR, Outlook Remains Stable
ONDAS HOLDINGS: 2025 Annual Meeting of Stockholders Set for May 12
OPEN ARMS HEALTH: Court Extends Cash Collateral Access to Aug. 15
ORIGINAL MOWBRAY'S: Seeks Continued Cash Collateral Access
OUTLOOK THERAPEUTICS: Grants $237,500 Retention Bonus to CFO
P3 HEALTH: Net Loss Widens to $310 Million in 2024
PASADENA PERFORMANCE: S&P Rates $950MM Secured Term Loan B 'BB-'
PEACOCK INTERMEDIATE: S&P Lowers ICR to 'CCC+', Outlook Negative
PHCV4 HOMES: Amends Motion to Sell 17-Single Family Homes
PHILLIPS TOTAL: Gets Interim OK to Use Cash Collateral
PMHB LLC: Court Asked to Reconsider Committee Appointment
PMHB LLC: Gets OK to Hire SFS Law Group as Bankruptcy Counsel
QHSLAB INC: Posts $259K Net Loss in 2024, Faces Going Concern Doubt
QUINEBAUG CAMP: Hires Savage Law Partners as Bankruptcy Counsel
RED RIVER: Future Talc Rep. Asks Court to Reassess Ch. 11 Dismissal
REDMOND PROFICIENCY: Moody's Rates 2025A/B Revenue Bonds 'Ba1'
RHODIUM ENCORE: Court OKs Revisions to Final Cash Collateral Order
RITEWAY INSURANCE: Taps Shraiberg Page P.A. as Bankruptcy Counsel
ROCK N CONCEPTS: Court Extends Cash Collateral Access to May 13
RSA SECURITY: Couldn't Reach Debt Restructuring Terms w/ Lenders
SBLA INC: Court Extends Cash Collateral Access to May 14
SEDGWICK CLAIMS: $750MM Loan Add-on No Impact on Moody's 'B2' CFR
SHABAZ YOGURT: U.S. Trustee Unable to Appoint Committee
SHAHINAZ SOLIMAN: Files Emergency Bid to Use Cash Collateral
SOLIGENIX INC: Lowers Quorum Requirement for Stockholder Meetings
SOUTHERN COLONEL: To Sell Hattiesburg Property to Magnolia Estates
SOYUZ MEDIA: Seeks to Extend Plan Exclusivity to November 3
STONEX GROUP: Moody's Affirms 'Ba3' Issuer Rating, Outlook Stable
STONEX GROUP: S&P Affirms 'BB-' ICR on Acquisition of R.J. O'Brien
SUNNOVA ENERGY: Reportedly Struggling to Gain Creditor Lifeline
SWC INDUSTRIES: Plan Exclusivity Period Extended to June 30
TAKARA GROUP: Taps Winslow McCurry & MacCormac as Attorney
TELUS CORP: S&P Rates Canadian Dollar-Denominated Sub Notes 'BB'
TETRAD ENTERPRISES: Taps Anderson CPA-Group as Accountant
TEXAS HEALTH: Gets Interim OK to Use Cash Collateral
TEXAS REIT: Seeks to Hire Transwestern as Real Estate Broker
THERMOSTAT PURCHASER: S&P Rates $40MM First-Lien Term Loan 'B-'
THOMPSON ELECTRIC: Gets Interim OK to Use Cash Collateral
TREESAP FARMS: Court Approves April 30 Auction for Assets
UNIVERSAL BIOCARBON: Hires Scott Law Team as Special Counsel
VENTURE GLOBAL: Fitch Gives 'BB(EXP)' to New $1.5BB Secured Notes
VENTURE GLOBAL: S&P Assigns Prelim 'BB+' Rating on Sr. Sec. Notes
VENUS CONCEPT: Reaches Consent Deal, Loan Amendment With Madryn
VERIFONE SYSTEMS: Moody's Affirms 'B3' CFR, Outlook Stable
VIRIDOS INC: Case Summary & 20 Largest Unsecured Creditors
VISION2SYSTEMS LLC: Committee Taps Vision2systems LLC as Attorney
VOBEV LLC: Seeks to Extend Plan Exclusivity to June 9
WASKOM BROWN: Case Summary & Seven Unsecured Creditors
WATERHOUSE CONSTRUCTION: Unsecureds to Split $6K in Plan
WAYNE HEALTHCARE: Fitch Alters Outlook on 'BB+' IDR to Positive
WELLPATH HOLDINGS: Secures Global Settlement, Plans Chapter 11 Exit
WHITEWATER WHISTLER: S&P Downgrades ICR to 'BB', Outlook Stable
WOLYNIEC CONSTRUCTION: U.S. Trustee Unable to Appoint Committee
WORKSPORT LTD: Registers Additional 329K Shares for Equity Plan
WORLD OF MISTRY: Seeks Subchapter V Bankruptcy in California
WYNN TEC: U.S. Trustee Unable to Appoint Committee
XINYUAN REAL ESTATE: Creditors Seek Involuntary Ch. 11 Bankruptcy
XTI AEROSPACE: Settles With Ex-CEO, Ends Consulting Deal
YUNHONG GREEN: Delays 2024 10-K Filing Due to Burden of Preparation
[] BOOK REVIEW: Transcontinental Railway Strategy
[] Husch Blackwell Takes Bankruptcy Partner Tara LeDay
*********
145 NAVARRO: Hires Newmark Valuation & Advisory as Appraiser
------------------------------------------------------------
145 Navarro, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of Texas to employ Newmark Valuation &
Advisory, LLC as appraiser.
The firm will perform these services:
a. inspection and valuation of the Debtor's primary asset, 145
Navarro Street, San Antonio, Texas, 78205;
b. preparation of an appraisal report of 145 Navarro; and
c. any court preparation and testimony to the extent required
by the Debtor.
Newmark will charge a flat fee of $10,000 to perform the appraisal
and appraisal report.
Newmark is a "disinterested person" within the meaning of section
101(14) of the Bankruptcy Code, according to court filings.
The firm can be reached through:
Christopher D. Remund, MAI
Newmark Valuation & Advisory, LLC
2530 Walsh Tarlton Lane, Suite 200
Austin, TX 78746
Tel: (512) 342-8100
Email: chris.remund@nmrk.com
About 145 Navarro LLC
145 Navarro LLC is a limited liability company.
145 Navarro LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90011) on February
18, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtor is represented by Susan Tran Adams, Esq. at Tran Singh,
LLP.
1808 MAGINN DR: Case Summary & One Unsecured Creditor
-----------------------------------------------------
Debtor: 1808 Maginn Dr, LLC
1146 North Central Avenue # 340
Glendale, CA 91202
Chapter 11 Petition Date: April 15, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-13112
Judge: Hon. Barry Russell
Debtor's Counsel: Onyinye N. Anyama, Esq.
ANYAMA LAW FIRM, APC
18000 Studebaker Rd., Suite 325
Cerritos, CA 90703
Tel: (562) 645-4500
E-mail: info@anyamalaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Adolfo Rodriguez Estrada as principal.
The Debtor has named Toorak Capital Partners, based at 1001 Water
Street, Suite 600, Tampa, FL 33602, as its sole unsecured creditor,
holding a claim valued at $500,000.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/MLHMKFQ/1808_MAGINN_DR_LLC__cacbke-25-13112__0001.0.pdf?mcid=tGE4TAMA
201 E 15TH OWNERS: Foreclosure Sale on May 6, 2025
--------------------------------------------------
By virtue of a default, in a proprietary lease by and between 201
E. 15th Owners Corp. ("lessor") and Seymour Peltin ("lessee"), in
accordance with its rights as lessor pursuant to the proprietary
lease and by-laws of 201 E. 15th Owners Corp., the lessor, by
Matthew D. Mannion or John O'Keefe of Mannion Auctions LLC, will
conduct a public foreclosure sale of the security consisting of 210
shares of capital stock of 201 E. 15th Owners Corp., all rights,
title, and interest in and to a proprietary lease to Apartments 5H
in the building known as and located at 201 East 15th Street, New
York, NY 10003.
The sale will be held on May 6, 2025, at 1:00 p.m. at the top of
the courthouse steps outside of the New York County Supreme Court
courthouse, 60 Centre Street, New York, New York 10007.
The apartment is sold "as is", and the sale is subject to the terms
of sale, terms of proprietary lease, the by-laws, offering plan and
any amendments thereto and to any other rules and regulations of
201 E. 15th Owners Corp. A 10% deposit by bank or certified check
payable to Schwartz Sladkus Reich Greenberg Atlas LLP, as attorney,
is required at the auction; balance due upon closing with 30 days.
Parties may also submit sealed bids with a certified or bank check
so that said check is received on or before April 28, 2025.
Parties wishing to submit a sealed bid should contact the attorney
for the secured party at wjaskola@ssrga.com for a copy of the terms
of sale. Sealed bids that do not contain a certified or bank check
and copy of the terms of sale signed by the proposed purchaser will
not be accepted.
Further, all sealed bids will be accompanied by a federal express
or other such overnight envelope for the attorney for the secured
party to return payments received from any unsuccessful bidders and
to return to any successful bidder a fully executed copy of the
terms of sale.
Cash will not be accepted. The approximate amount of the lien as
of April 1, 2025, is $160,595.54.
Counsel to the Secured Party can be reached at:
Schwartz Sladkus Reich Greenberg Atlas LLP
Attn: William A. Jaskola, Esq.
444 Madison Avenue, 6th Floor
New York, New York 10022
Tel: (212) 743-7122
Email: wjaskola@ssrga.com
23ANDME HOLDING: Aims to Stop Canadian Data-Breach Lawsuits
-----------------------------------------------------------
Angelica Serrano-Roman of Bloomberg Law reports that struggling DNA
testing company 23andMe has asked a U.S. bankruptcy court to pause
two Canadian class action lawsuits tied to a cybersecurity breach,
arguing the cases could disrupt its restructuring process and
planned sale of assets.
In a filing Monday, April 14, 2025, with the U.S. Bankruptcy Court
for the Eastern District of Missouri, the company said the Canadian
suits mirror ongoing U.S. litigation but go further by naming its
current and former directors, officers, employees, and auditor KPMG
LLP as defendants.
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.
23ANDME HOLDING: Eyes OTC Trading After Bankruptcy Filing
---------------------------------------------------------
23andMe Holding Co. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company received a
letter from the Listing Qualifications Department of The Nasdaq
Stock Market LLC, notifying the Company that, in connection with
the Company's announcement of its filing of the Bankruptcy
Petitions, and in accordance with Nasdaq Listing Rules 5101,
5110(b), and IM-5101-1, the Staff has determined to delist the
Company's securities from The Nasdaq Stock Market.
As previously disclosed, on March 23, 2025, the Company and certain
of its subsidiaries filed voluntary petitions seeking relief under
Chapter 11 of Title 11 of the United States Bankruptcy Code in the
United States Bankruptcy Court for the Eastern District of
Missouri.
As set forth in the Nasdaq Notice, unless the Company timely
requests a hearing before a Nasdaq hearings panel, trading of the
Company's Class A common stock, $0.0001 par value per share, will
be suspended and a Form 25-NSE will be filed with the Securities
and Exchange Commission, which will remove the Common Stock from
listing and registration on The Nasdaq Stock Market.
The Company does not intend to request a hearing before the panel
to appeal the Staff's determination. Accordingly, the Company
expects that its Common Stock will be delisted from The Nasdaq
Stock Market. The Company anticipates that, upon the delisting from
The Nasdaq Stock Market, the Common Stock will be quoted on the OTC
Pink Market. The Company, however, can provide no assurance that
the Common Stock will commence or continue to trade on this market.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology
company empowering a healthier future. Through its
direct-to-consumer genetic testing, 23andMe offers personalized
insights into ancestry, genetic traits, and health risks. The
Company has developed a large database of genetic information from
over 15 million customers, enabling it to provide health and
carrier status reports and collaborate on genetic research for drug
development. On the Web: http://www.23andme.com/
On March 23, 2025, 23andMe Holding Co. and 11 affiliated debtors
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. E.D. Mo. Lead Case No.
25-40976).
The Company disclosed $277,422,000 in total assets against
$214,702,000 in total liabilities as of Dec. 31, 2024.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis &
Bockius LLP are serving as legal counsel to 23andMe and Alvarez &
Marsal North America, LLC as restructuring advisor. Moelis &
Company LLC is serving as investment banker and Goodwin Procter LLP
is serving as legal advisor to the Special Committee of 23andMe's
Board of Directors. Reevemark and Scale are serving as
communications advisors to the Company. Kroll is the claims agent.
AFFINITY INTERACTIVE: Moody's Cuts CFR to Caa1, Outlook Negative
----------------------------------------------------------------
Moody's Ratings downgraded the Corporate Family Rating of Affinity
Interactive ("Affinity") to Caa1 from B3, the Probability of
Default Rating to Caa1-PD from B3-PD, and the Backed Senior Secured
First Lien Notes rating to Caa1 from B3. The outlook was changed to
negative from stable.
The downgrade reflects Affinity's weak liquidity, driven by
sustained lower earnings and higher operating costs, which has
caused its debt/EBITDA to increase to 11.7x at LTM September 30,
2024 from 7.8x at year-end December 31, 2023. Affinity's interest
coverage and profit margin are also significantly weaker than its
gaming peers.
The negative outlook reflects the high likelihood that Affinity
will need to draw on its revolver in the next 12 to 18 months, and
the company's very limited revolver availability as a result of a
leverage covenant test. The negative outlook also reflects Moody's
concerns that Affinity will be unable to extend its $50 million
revolver expiring in December 2025. Affinity's limited and
uncertain revolver capacity, negative free cash flow, and low cash
balances limit its financial flexibility, and call into question
the company's ability to pay off the $545 million first lien senior
secured notes maturing in December 2027.
RATINGS RATIONALE
Affinity's credit profile (Caa1 negative) reflects the company's
weak liquidity, elevated leverage, low interest coverage, and weak
EBIT margin, driven by Affinity's declining EBITDA. Its EBITDA
decreased approximately 33% from December 31, 2023 to LTM September
30, 2024 to $54 million due to increased competition and higher
operating costs. Affinity remains relatively small, with
approximately $305 million in net revenue for the LTM September 30,
2024, which does not provide the company the economies of scale to
compete with larger gaming operators in the same markets.
As a result, the company's debt/EBITDA increased to 11.7x at LTM
September 30, 2024 from 7.8x at year-end December 31, 2023. Its
EBIT/interest expense ratio declined to 0.4x from 1.0x over the
same period. EBIT margin also decreased to 5.3% from 13.3%.
These credit challenges are partially offset by Affinity's
geographic diversity with seven properties operating in three
states.
Affinity's liquidity is weak. The company had approximately $53
million of unrestricted cash as of September 30, 2024, but Moody's
projects this cash balance to continue to decline due to Affinity's
ongoing negative free cash flow. Its $50 million revolver is fully
available but will expire in December 2025. Moreover, if Affinity
draws more than $10 million on its revolver, it would be subject to
a first-lien debt-to-EBITDA coverage test of 6.0x. Its first-lien
debt-to-EBITDA was 8.21x as of September 30, 2024.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Affinity's ratings could be upgraded if the company improves its
operating performance, including revenues and EBITDA, resulting in
sufficient financial covenant cushion on the revolver. An upgrade
would also be predicated on adequate liquidity including positive
free cash flow. Quantitatively, debt-to-EBITDA below 8x and
EBIT-to-interest expense above 1.5x would result in positive rating
momentum.
A downgrade could result if the likelihood of a distressed exchange
increases or estimated recoveries decline. The ratings could also
be downgraded if liquidity deteriorates.
Affinity Interactive is a Nevada corporation headquartered in Las
Vegas, which owns and operates seven casinos: four located in
Nevada, two in Missouri, and one in Iowa. Affinity is a private
company wholly-owned by funds managed by affiliates of Z Capital
Group LLC, which does not disclose its financial information. Net
revenue for the LTM September 30, 2024 was about $305 million.
The principal methodology used in these ratings was Gaming
published in June 2021.
AIR TRANSPORT: S&P Withdraws 'BB' Long-Term Issuer Credit Rating
----------------------------------------------------------------
S&P Global Ratings withdrew its 'BB' long-term issuer credit rating
on Air Transport Services Group (ATSG) at the issuer's request
following the close of Stonepeak's acquisition of ATSG. At the time
of the withdrawal, S&P's outlook on the company was stable.
S&P's issuer credit rating on Stonepeak Nile Parent LLC (ATSG's
direct parent after the transaction closes) remains unchanged at
BB/Stable/--.
ALLIED PROPERTIES: Moody's Withdraws 'Ba1' Corporate Family Rating
------------------------------------------------------------------
Moody's Ratings withdrew the ratings of Allied Properties Real
Estate Investment Trust (Allied REIT). The outlook prior to the
withdrawal was negative.
Moody's have withdrawn Allied REIT's Ba1 Corporate Family Rating
and senior unsecured ratings and its SGL-3 Speculative Grade
Liquidity rating.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).
COMPANY PROFILE
Headquartered in Toronto, Canada, Allied Properties Real Estate
Investment Trust (TSX:AP.UN) is a REIT that owns, manages, and
develops office properties in Canada's major cities. At the end of
2024, the REIT's portfolio consisted of 186 rental properties, not
including properties under development or held for sale, with 14.3
million square feet of gross leasable area in five urban markets
across Canada.
ALTRAIN MEDICAL: Gets OK to Hire Keery McCue PLLC as Counsel
------------------------------------------------------------
Altrain Medical and Dental Assisting Academy LLC received approval
from the U.S. Bankruptcy Court for the District of Arizona to hire
Keery McCue, PLLC as counsel.
The firm's services include:
a. preparing pleadings and applications;
b. conducting examinations incidental to administration;
c. advising the Debtor of its rights, duties, and obligations
under Chapter 11 of the Bankruptcy Code;
d. taking any and all other necessary action incident to the
proper preservation and administration of this Chapter 11 estate;
and
e. advising the Debtor in the formulation and presentation of a
plan pursuant to Chapter 11 of the Bankruptcy Code, the disclosure
statement and concerning any and all matters relating thereto.
The firm will be paid at $165 to 475 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Patrick Keery, Esq., an attorney at Keery McCue, disclosed in a
court filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Martin J. McCue, Esq.
Patrick F. Keery, Esq.
Keery McCue, PLLC
6803 East Main Street, Suite 1116
Scottsdale, AZ 85251
Tel: (480) 478-0709
Fax: (480) 478-0787
Email: mjm@keerymccue.com
pfk@keerymccue.com
About Altrain Medical and
Dental Assisting Academy LLC
Altrain Medical and Dental Assisting Academy LLC is, a training
school for medical and dental assistants based in Glendale,
Arizona.
Altrain Medical and Dental Assisting Academy LLC sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case
No. 25-02732) on March 28, 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 Eddward P Ballinger Jr handles the
case.
The Debtor is represented by Patrick F. Keery at Keery Mccue, PLLC.
AMERICAN DREAM: Gets OK to Hire SL Biggs as Accountant
------------------------------------------------------
American Dream Land Development of Colorado LLC received approval
from the U.S. Bankruptcy Court for the District of Colorado to hire
SL Biggs, a Division of SingerLewak LLP, to perform professional
accounting and advisory services.
SL Biggs will assist the Debtor in reviewing sole member Yichen
Yang's personal returns, its corporate documents, and determining
whether any tax returns needed to be filed by the Debtor. Said
services would include the preparation and filing of any needed
returns as well.
Mark Dennis, the accountant in charge of the Debtor's account, will
charge $500 per hour for his work and any associates used will be
billed at $225 per hour.
The firm will be paid a $2,500 retainer.
Mr. Dennis assured the court that his firm does not have any
connection with the Debtor, the Debtor's creditors, or any other
party in connection with the United States Trustee or employed by
the office of the United States Trustee.
The accountant can be reached through:
Mark Dennis
SL Biggs
2000 S Colorado Blvd, Tower 2
Denver, CO
Phone: (303) 694-6700
Email: MDennis@SLBiggs.com
About American Dream Land Development of Colorado LLC
American Dream Land Development of Colorado LLC is a limited
liability company in Colorado.
American Dream Land Development of Colorado LLC sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Col. Case No. 24-17308) on December 10, 2024. In the petition filed
by Yichen Yang, as sole member, the Debtor reports estimated assets
and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Joseph G. Rosania Jr. handles the case.
The Debtor is represented by Jonathan M. Dickey, Esq. at KUTNER
BRINEN DICKEY RILEY PC.
AMERICAN REFRACTORY: Hires Proffitt & Associates as Accountant
--------------------------------------------------------------
American Refractory Company, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of West Virginia to
employ Proffitt & Associates PLC as accountant to prepare W-2s, and
quarterly and annual tax returns.
The accounting services to be provided include all acts necessary
to report and comply with state and federal tax laws and to provide
other accounting services required by the Debtor.
The firm will charge $200 per hour for services rendered by its
accountant, Cindy Bower. Staff accountants are billed at the rate
of $75 per hour.
Ms. Bower disclosed in court filings that the firm is disinterested
as defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Cindy Bower
Bower Cynthia R CPA
Proffitt & Associates PLC
430 Harper Park Dr # B
Beckley, WV 25801
Phone: (304) 255-4998
About American Refractory Company, LLC
American Refractory Company LLC owns an 8,256 sq ft commercial
building situated on 1 acre lot located at 257 William M Martin
Drive, Mount Hope, WV 25880 valued at $450,000.
American Refractory Company LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-20262) on
November 26, 2024. In the petition filed by Benjamin S. Batton, as
member, the Debtor reports total assets of $867,400 and total
liabilities of $1,131,260.
The Debtor is represented by Joe M. Supple, Esq. at SUPPLE LAW
OFFICE, PLLC.
ANNALEE DOLLS: Section 341(a) Meeting of Creditors on May 15
------------------------------------------------------------
On April 11, 2025, Annalee Dolls LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the District of New Hampshire.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on May 15,
2025 at 10:00 AM via Telephonic Meeting.
About Annalee Dolls LLC
Annalee Dolls LLC is an American company known for its handcrafted
felt dolls that embody holiday themes and whimsical charm. Founded
in 1934, the business has become a staple of collectible Americana,
with its headquarters and flagship store located in Meredith, New
Hampshire. The Company continues to attract visitors and collectors
with its nostalgic products and scenic gift shop near
Lake Winnipesaukee.
Annalee Dolls LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.H. Case No. 25-10232) on April 11,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Kimberly Bacher handles the case.
The Debtor is represented by William S. Gannon, Esq. at WILLIAM S.
GANNON PLLC.
APPLIED ENERGETICS: Postes 2024 Net Loss of $9.2 Million
--------------------------------------------------------
Applied Energetics, Inc. filed with the U.S. Securities and
Exchange Commission its Annual Report on Form 10-K reporting a net
loss of $9,174,958 for the year ended Dec. 31, 2024, compared to a
net loss of $7,350,435 for the same period in 2023.
The Company had negative cash flows from operations of $5,092,690
and may incur additional future losses if the company is unable to
secure significant government contracts.
At Dec. 31, 2024, the company had total current assets of $664,779
and total current liabilities of $732,418 resulting in a working
capital deficit of $67,639. At Dec. 31, 2024, the company had cash
of $164,812.
Las Vegas, NV-based RBSM LLP, the Company's auditor since 2016,
issued a "going concern" qualification in its report dated Mar. 28,
2025, citing that the Company has suffered recurring losses from
operations and will require additional capital to fund its current
operating plan, that raises substantial doubt about the Company's
ability to continue as a going concern.
Based on the company's current business plan, it believes its cash
balance as of Mar. 28, 2025, together with anticipated revenues
from a government contracts, will be sufficient to meet its
anticipated cash requirements for the near term. However, the
current business plan may prove unachievable. Such conditions raise
substantial doubts about the company's ability to continue as a
going concern for one year from the date the financial statements
are issued.
The company's existence depends upon management's ability to
develop profitable operations. Management is devoting substantially
all of its efforts to developing its business and raising capital
which may not result in profitable operations or enable it to
overcome future liquidity concerns.
Trade conditions, such as exacerbated supplier shutdowns and
delays, contribute to this uncertainty. Additionally, Russia's
military action in Ukraine, war in the Middle East, and related
economic sanctions and attacks on the flow of goods and commodities
around the globe could impact the company's ability to source
necessary supplies and equipment which could materially and
adversely affect its ability to continue as a going concern. In
addition, the company's ability to continue as a going concern may
depend on its ability to raise capital which may be impacted by
these events, including as a result of increased market volatility,
or decreased market liquidity. This may result in third-party
financing being unavailable on terms acceptable to the company or
at all.
To further improve its liquidity position, the company's management
continues to explore additional equity financing through
discussions with investment bankers and private investors. The
company may be unsuccessful in its effort to secure additional
equity financing.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/mu4cwpxa
About Applied Energetics
Headquartered in Tucson, Arizona, Applied Energetics, Inc. --
http://www.appliedenergetics.com-- specializes in the development
and manufacture of advanced high-performance lasers and optical
systems, and integrated guided energy systems, for prospective
defense, national security, industrial, biomedical, and scientific
customers worldwide.
As of Dec. 31, 2024, the Company had $2,070,869 in total assets,
$1,678,122 in total liabilities, and a total stockholders' equity
of $392,747.
ASHLEY SELMAN: Taps Barrett Law/Cuneo Gilbert as Special Counsel
----------------------------------------------------------------
Ashley Selman Farms Partnership seeks approval from the U.S.
Bankruptcy Court for the Northern District of Mississippi to employ
Barrett Law Group, P.A. and Cuneo Gilbert & LaDuca, LLP as special
counsel.
The counsels will represent the Debtor in the matter of any claim
or claims that the Debtor has as a result of losses caused by UMB
Bank and pre-petition litigation against UMB Bank.
The Debtor will be responsible for fees only of the claim results
in recovery by judgement or settlement. The counsels will receive
33.33 percent of the gross proceeds.
Barrett Law Group, P.A. and Cuneo Gilbert & LaDuca, LLP assured the
court that they are "disinterested persons" within the meaning of
11 U.S.C. 101(14).
The firms can be reached through:
Don Barrett, Esq.
Barrett Law Group, P.A.
404 Court Square
P.O. Box 927
Lexington, MS 39095
Phone: (662) 490-7384
- and -
Cuneo Gilbert & LaDuca, LLP
2445 M Street NW, Suite 740
Washington, D.C. 20037
Phone: (202) 789-3960
Fax: (202) 789-1813
Email: hello@cuneolaw.com
About Ashley Selman Farms Partnership
Ashley Selman Farms Partnership is a privately-held company
operating in the oilseed and grain farming industry.
Ashley Selman Farms Partnership sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Miss. Case No. 25-10118) on
January 17, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $10 million and $50 million each.
The Law Offices of Craig M. Geno, PLLC represents the Debtor as
counsel.
ASHLEY SELMAN: Taps Merkel & Cocke/Lewis & Lewis as Special Counsel
-------------------------------------------------------------------
Ashley Selman Farms Partnership seeks approval from the U.S.
Bankruptcy Court for the Northern District of Mississippi to employ
Merkel & Cocke, P.A. and Lewis & Lewis Attorneys as special
counsel.
The counsels will represent the Debtor in the matter of any claim
or claims that the Debtor has as a result of losses caused by UMB
Bank and pre-petition litigation against UMB Bank.
The Debtor will be responsible for fees only of the claim results
in recovery by judgement or settlement. The counsels will receive
33.33 percent of the gross proceeds.
Merkel & Cocke, P.A. and Lewis & Lewis Attorneys assured the court
that they are "disinterested persons" within the meaning of 11
U.S.C. 101(14).
The firms can be reached through:
Christopher W. Winter, Esq.
Merkel & Cocke, P.A.
Lewis & Lewis Attorneys
30 Delta Avenue
PO Box 1388
Clarksdale, MS 38614
Phone: (662) 337-8486
About Ashley Selman Farms Partnership
Ashley Selman Farms Partnership is a privately-held company
operating in the oilseed and grain farming industry.
Ashley Selman Farms Partnership sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Miss. Case No. 25-10118) on
January 17, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $10 million and $50 million each.
The Law Offices of Craig M. Geno, PLLC represents the Debtor as
counsel.
ATLANTIC NATURAL: Court OKs Interim Use of Cash Collateral
----------------------------------------------------------
Atlantic Natural Foods, LLC got the green light from the U.S.
Bankruptcy Court for the Eastern District of Louisiana to use the
cash collateral of its secured lender, Comerica Bank.
The order authorized the Debtor to use cash collateral, on an
interim basis, until the final hearing on May 14 or until the
Debtor's right to access cash collateral is terminated due to the
occurrence of certain events such as the dismissal or conversion of
its Chapter 11 case.
The Debtor needs to use cash collateral to fund ongoing operations,
pay administrative expenses and pursue a sale or reorganization
that would satisfy its obligations to Comerica.
Comerica will be provided with protection in the form of
replacement liens on the Debtor's post-petition assets (excluding
bankruptcy avoidance actions); an administrative claim under
Section 507(b) of the Bankruptcy Code; and bi-weekly payments of
$20,000.
Additionally, ND Limited Management, LLC, a non-debtor entity, will
provide Comerica with a first priority lien and mortgage on real
property in St. Tammany Parish, La.
About Atlantic Natural Foods
Atlantic Natural Foods, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 25-10676) on
April 7, 2025, listing between $10 million and $50 million in
assets and between $1 million and $10 million in liabilities. J.
Douglas Hines, manager, signed the petition.
Judge Meredith S. Grabill oversees the case.
Tristan Manthey, Esq., at Fishman Haygood, L.L.P., is the Debtor's
legal counsel.
Comerica Bank, as lender, is represented by:
Rudy J. Cerone, Esq.
McGlinchey Stafford, PLLC
601 Poydras Street, 12th Floor
New Orleans, LA 70130
Telephone: (504) 586-1200
Facsimile: (504) 910-9362
rcerone@mcglinchey.com
AVILLA MOTOR: Gets OK to Use Cash Collateral
--------------------------------------------
Avilla Motor Works, Inc. got the green light from the U.S.
Bankruptcy Court for the Northern District of Indiana, Fort Wayne
Division, to use cash collateral.
The Debtor needs to use cash collateral to cover ongoing business
expenses like wages, insurance, and other operational costs.
The company owes money to several creditors, including Farmers and
Merchants Bank, with a first priority lien on the Debtor's assets.
Other creditors with potential claims or liens on the company's
assets include Funding Metrics, LLC, CT Corporation, Pearl Delta
Funding, LLC, and Jeffrey P. Watson.
As protection, the secured creditors will be granted a replacement
lien on assets acquired by the Debtor after its Chapter 11 filing
to the same extent and priority as their original liens.
A final hearing is scheduled for May 6.
Farmers and Merchants Bank is represented by:
Roy F. Kiplinger, Esq.
Kiplinger Law Firm, P.C.
229 W. Berry Street, Suite 200
Fort Wayne, IN 46802
Phone: (260) 407-7070
Fax: (260) 407-7137
info@kiplingerlaw.com
About Avilla Motor Works Inc.
Avilla Motor Works, Inc. is a full-service automotive company
specializing in towing, roadside assistance, and auto repairs. It
is known for its emergency services, mechanical diagnostics, and
vehicle transport, operating 23 hours a day, seven days a week.
Avilla filed Chapter 11 petition (Bankr. N.D. Ind. Case No.
25-10433) on April 7, 2025, listing $636,483 in assets and
$2,344,190 in liabilities. Royce E. Thacker II, chief executive
officer of Avilla, signed the petition.
Scot T. Skekloff, Esq., at HallerColvin PC, represents the Debtor
as legal counsel.
AVISON YOUNG: Moody's Rates New $37MM Bank Credit Facility 'B1'
---------------------------------------------------------------
Moody's Ratings assigned a B1 rating to Avison Young (Canada)
Inc.'s new senior secured $37 million bank credit facility (term
loan and delayed draw term loan). Concurrently, Moody's downgraded
the rating of the existing senior secured first-out term loan to B2
from B1 and affirmed Avison Young's other ratings, namely its Caa1
Corporate Family Rating, Caa1-PD Probability of Default Rating, the
Caa1 rating on its senior secured second-out term loan, and the
Caa2 rating on the existing senior secured third-out term loan. The
outlook is negative.
The $37 million new term loan will be disbursed in two phases: an
initial $27 million at closing, followed by a $10 million delayed
draw in the second half of 2025. Avison Young intends to use the
proceeds from the new term loan for general corporate purposes.
RATINGS RATIONALE
Avison Young's Caa1 CFR reflects the company's consistently high
debt-to-EBITDA leverage (Moody's adjusted, excluding preferred
shares), which Moody's anticipates will surpass 10x for the full
year of 2024. Additionally, there is limited visibility regarding a
potential turnaround in the commercial real estate (CRE)
transaction environment, which could lead to sustained performance
improvements for Avison Young. The Caa1 rating also reflects the
company's small scale, and resulting inherent earnings volatility,
relative to CRE services peers and, more broadly, the rated
business services universe.
The instrument ratings reflect the probability of default of the
company, represented by the Caa1-PD Probability of Default Rating,
an average expected family recovery rate of 50% at default, and the
particular instruments' ranking in the capital structure. The
downgrade of the first-out term loan's rating to B2 reflects the
increased balance amount of more senior debt in the capital
structure, with both the revolving credit facility and the new term
loan ranking senior to it.
Marketing terms for the new credit facilities (final terms may
differ materially) include the following:
Senior or pari passu debt capacity up to the senior debt cap
starter amount of $75 million, plus senior debt cap additional
amounts agreed to in writing by the requisite lenders. New senior
term loan credit facility will mature 90 days prior to maturity
date of existing facilities.
No credit party may make any disposition of any intellectual
property right or material assets to any non-credit party (whether
pursuant to a sale, lease, license, transfer, investment,
restricted payment or otherwise), with exceptions.
The credit agreement is expected to provide some limitations on
up-tiering transactions, requiring 100% lender consent for
amendments that subordinate the debt and/or liens, with the
exception of permitted senior debt and liens, which require
majority lender consent.
While the new term loan alleviates immediate liquidity concerns,
the negative outlook continues to reflect Avison Young's weak
credit metrics, in particular leverage, given the still muted
performance of its leasing brokerage, sales brokerage and capital
markets segments.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given its small scale and highly cyclical business, a ratings
upgrade would be predicated on the company's increase in scale and
greater diversification away from transaction-based activities. In
addition, ratings could be upgraded should leverage decline
materially below 6x on a sustained basis, and liquidity improve
with RCF/Net Debt above 7.5%.
The ratings could be downgraded should Avison Young's liquidity
deteriorate, or should the company's leverage remain materially
above 8x on a sustained basis by year end 2025.
Avison Young (Canada) Inc. is the largest principal-owned and led
commercial real estate services firm in the world, with
approximately 5,000 real estate professionals in 100+ offices
across 17 countries offering a full range of asset-level,
investment, data and technology services to occupiers, owners,
investors and the public sector in office, retail, industrial,
multi-family, hospitality and other types of commercial real
estate. Avison Young is headquartered in Toronto, Canada, and has
100+ offices including affiliates in North America, Europe, Asia,
the Middle East and Africa.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
BCP VI SUMMIT: S&P Assigns 'B' ICR, Outlook Stable
--------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to BCP VI
Summit Parent L.P. and withdrew its issuer credit rating on Thermal
Borrower, the entity that was ultimately replaced by BCP VI Summit
Parent.
S&P said, "At the same time, we affirmed our 'B' issue-level rating
on the company's senior secured credit facilities, including its
$900 million term loan B due 2032 and $160 million revolver due
2030. The recovery rating remains '3' indicating our expectation of
meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in
the event of a payment default.
"The stable outlook reflects our forecast for S&P Global
Ratings-adjusted leverage around mid-6x in 2025, improving modestly
in 2026 as stable end-market demand and the realization of
operational improvement initiatives drive modest EBITDA growth."
Brookfield Capital Partners acquired nVent Electric PLC's thermal
management business through a new entity, BCP VI Summit Parent
L.P., for $1.7 billion in a transaction that closed on Jan. 30,
2025. The company, doing business as Chemelex, provides electric
heat management solutions globally, including heat tracing products
through its RAYCHEM brand.
S&P said, "We assigned our 'B' issuer credit rating to BCP VI
Summit Parent L.P. and affirmed our 'B' issue-level rating on the
company's senior secured credit facilities, in line with our prior
ratings on Thermal Borrower. Our review of the executed transaction
documentation reflected a change to the company's organizational
structure from what we rated on Sept. 4, 2024. Specifically,
executed documentation names BCP VI Summit Parent L.P. as the
parent entity and BCP VI Summit Holdings L.P. as the operating
subsidiary through which rated debt is issued, compared with our
prior understanding that Thermal Borrower would be the parent and
issuer of the debt. There were no other material changes to the
transaction terms. Therefore, our ratings on BCP VI Summit Parent
reflect our credit views of Thermal Borrower, as initially
published here. Going forward, we will publish our ratings reports
under the parent entity BCP VI Summit Parent L.P. and refer to the
company by its rebranded name, Chemelex.
"We continue to forecast Chemelex's S&P Global Ratings-adjusted
leverage will be high, in the mid-6x in 2025 and high-5x in 2026.
Since the company's transaction close on Jan. 30, 2025, it is our
understanding that Chemelex has been executing on separation
actions and operational-improvement initiatives. We believe these
actions will continue at a pace and at levels consistent with our
previously published base case forecast. While we believe recent
policy announcements with regard to U.S. tariffs and retaliatory
tariffs may negatively affect the company's cost structure, and
introduce risk to our base case forecast, we continue to view the
company's forecasted credit metrics to be generally in line with
current ratings and analysis, as initially published here.
"The stable outlook reflects our forecast for S&P Global
Ratings-adjusted leverage around mid-6x in 2025, improving modestly
in 2026 as stable end-market demand and operational improvement
drive modest EBITDA growth.
"We could lower our ratings if S&P Global Ratings-adjusted leverage
sustains above 6.5x or if free operating cash flow (FOCF) turns
negligible or negative."
This could occur if:
-- Demand for the company's heat trace or other products declines
and pressures profitability;
-- The company is unable to realize cost-out actions that grow
EBITDA to a level that accommodates its significant debt
obligations; or
-- The company pursues a more aggressive financial policy,
including debt-funded acquisitions or shareholder returns.
While unlikely within the next year or two, S&P could raise its
rating on the company if:
-- S&P Global Ratings-adjusted debt to EBITDA decreases below 5x
on a sustained basis;
-- Management and the company's owners commit to a financial
policy that is commensurate with this level of leverage, including
the impact of potential future acquisitions and shareholder
rewards; and
-- The company demonstrates a track record of generating good FOCF
as a stand-alone entity.
BEVERLY COMMUNITY: Trustee Taps Verita Global as Claims Agent
-------------------------------------------------------------
Howard Ehrenberg, the trustee appointed in the Chapter 11 cases of
Beverly Community Hospital Association, doing business as Beverly
Hospital, and Montebello Community Health Services, Inc., seeks
approval from the U.S. Bankruptcy Court for the Central District of
California to employ Kurtzman Carson Consultants, LLC dba Verita
Global as the claims and noticing agent.
Verita Global will oversee the distribution of notices and will
assist in the maintenance, processing, and docketing of proofs of
claim filed in the Chapter 11 cases of the Debtors.
Prior to petition date, the firm received a retainer in the amount
of $120,000 from the Debtors.
Evan Gershbein, executive vice president at Verita Global,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Evan Gershbein
Kurtzman Carson Consultants, LLC
222 N. Pacific Coast Highway, 3rd Floor
El Segundo, CA 90245
Telephone: (310) 823-9000
About Beverly Community Hospital Association
dba Beverly Hospital
Beverly Community Hospital Association and affiliates operate
general medical and surgical hospitals.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Lead Case No. 23-12359) on April
19, 2023. In the petition signed by its chief executive officer,
Alice Cheng, Beverly Community disclosed $1 million to $10 million
in assets and $100 million to $500 million in liabilities.
Judge Sandra R. Klein oversees the cases.
The Debtors tapped Sheppard, Mullin, Richter and Hampton, LLP as
bankruptcy counsel; Orrick, Herrington & Sutcliffe, LLP as special
and conflicts counsel; and Triple P RTS, LLC, a wholly owned
subsidiary of Portage Point Partners, LLC, as restructuring
advisor.
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in these Chapter 11 cases. The
committee is represented by Tania Moyron, Esq.
Tamar Terzian is the patient care ombudsman appointed in the
Debtors' Chapter 11 cases.
Howard M. Ehrenberg was appointed as trustee appointed in these
Chapter 11 cases. The trustee tapped Greenspoon Marder, LLP as
counsel and Stretto, Inc. as financial analysis and litigation
support services provider.
BEYOND AIR: NeuroNOS Secures $2M to Develop Autism Therapy
----------------------------------------------------------
NeuroNOS, a pioneering biopharmaceutical company focused on
developing transformative treatments for Autism Spectrum Disorder
(ASD) and other complex neurological conditions, including
Alzheimer's disease and brain cancers, and a subsidiary of Beyond
Air (NASDAQ: XAIR), has secured an initial $2 million in equity
financing from private investors as part of a larger funding round.
This investment will accelerate the preclinical development of
NeuroNOS's small-molecule drug, designed as an injectable or oral
treatment for children with autism. Based on pioneering research,
the drug leverages the regulation of nitric oxide (NO) levels in
the brain to significantly impact neurological function. NeuroNOS
continues to raise additional capital to support further
development and clinical progress.
"This $2 million investment is an important step in supporting our
research for individuals with autism," stated Amir Avniel,
NeuroNOS's CEO. "Our NO-regulating therapy has the potential to
address the underlying biological mechanisms of ASD, and we are
committed to advancing a science-driven approach that could make a
meaningful difference for children and families affected by
autism."
"Autism is a complex condition with limited treatment options,"
added Prof. Haitham Amal, BScPharm, Ph.D., Chief Scientific Officer
of NeuroNOS. "The promising preclinical data from the research
completed to date have demonstrated that by addressing nitric oxide
imbalances in the brain, we can create a truly novel approach to
improving both behavior and underlying brain function. These
positive preclinical data provide us with strong confidence in the
potential for this therapy."
The NeuroNOS drug under development stems from the innovative
discoveries of Prof. Amal during his research at the School of
Pharmacy at the Hebrew University of Jerusalem (HUJI) and currently
a visiting professor at Harvard University. This research was
published in the prestigious journal Advanced Science. His research
showed that children with ASD exhibit elevated NO levels. Moreover,
inhibiting NO production in neurons reversed autism-like phenotypes
in ASD mouse models and in stem cell-derived neurons from children
with ASD.
These findings, which are the basis for the partnership established
between NeuroNOS and the Hebrew University, have been validated in
over 700 animals in three mouse models, with human stem
cell-derived neurons, and blood samples from children with autism,
provide biological evidence of how NO dysregulation contributes to
ASD. The loss of dendritic spines, particularly in brain regions
associated with social behavior and cognitive development, is
believed to be a key driver of the social and developmental
impairments seen in children with autism.
By targeting and regulating NO levels, NeuroNOS's drug aims to
restore normal brain signaling, prevent synaptic dysfunction, and
ultimately improve both behavioral and cognitive function in
children with ASD.
To ensure the efficient production of its innovative drug, NeuroNOS
is working with a U.S. based contract manufacturer. This
partnership is instrumental in scaling production and ensuring the
highest standards of quality.
In parallel, NeuroNOS is in the advanced stages of formulation
development. The company is currently optimizing the drug's
delivery mechanism, with the first phase focusing on a subcutaneous
(under-the-skin) injection to ensure optimal bioavailability and
patient compliance. Future formulations, including an oral
formulation, are also being explored to expand accessibility for
pediatric patients.
The Growing Autism Prevalence and the Need for Innovative
Solutions
ASD is a complex neurodevelopmental condition affecting millions of
children worldwide. Many individuals with ASD experience severe
social, cognitive, and developmental challenges, which can
significantly impact their quality of life and ability to integrate
into society. In the past 20 years, autism rates in the United
States have risen dramatically, which has intensified the urgency
to develop effective treatments. Despite the growing prevalence of
ASD, there are currently no FDA-approved drugs that directly target
the biological mechanisms underlying the condition. NeuroNOS is
committed to addressing this critical gap by developing a
transformative therapy aimed at improving both the behavioral and
biological aspects of ASD.
About NeuroNOS
NeuroNOS is a pioneering biopharmaceutical company developing a
novel drug for Autism Spectrum Disorder (ASD) and other
neurological conditions. The company's small-molecule therapy is
based on a technology from the Hebrew University. It is designed
for subcutaneous injection or oral administration and aims to
regulate nitric oxide (NO) levels in the brain, a mechanism that
has shown significant promise in preclinical studies. NeuroNOS has
demonstrated that balancing NO levels can lead to both behavioral
and biological improvements in animal models of autism. The company
is actively advancing its preclinical research, with plans to enter
a Phase 1 human clinical trial in 2026.
About Beyond Air
Headquartered in Garden City, N.Y., Beyond Air, Inc. --
www.beyondair.net -- is a commercial-stage medical device and
biopharmaceutical company developing a platform of nitric oxide
generators and delivery systems (the "LungFit platform") capable of
generating NO from ambient air. The Company's first device, LungFit
PH, received premarket approval from the FDA in June 2022. The NO
generated by the LungFit PH system is indicated to improve
oxygenation and reduce the need for extracorporeal membrane
oxygenation in term and near term (34 weeks gestation) neonates
with hypoxic respiratory failure associated with clinical or
echocardiographic evidence of pulmonary hypertension in conjunction
with ventilatory support and other appropriate agents.
East Hanover, New Jersey-based Marcum LLP, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated June 24, 2024, citing that the Company has incurred
significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
As of December 31, 2024, Beyond Air had $34.1 million in total
assets, $15.8 million in total liabilities, and $18.4 million in
total equity.
BIOXCEL THERAPEUTICS: Going Concern Doubt After $59.6M Loss in 2024
-------------------------------------------------------------------
BioXcel Therapeutics, Inc. filed with the U.S. Securities and
Exchange Commission its Annual Report on Form 10-K. According to
BTI, it has incurred substantial net losses and negative cash flows
from operating activities in nearly every fiscal period since
inception and expects this trend to continue for the foreseeable
future.
The Company recognized net losses of $59.6 million and $179.1
million for the years ended Dec. 31, 2024 and 2023, respectively,
and had net cash used in operating activities of $72 million and
$155 million for the years ended Dec. 31, 2024 and 2023,
respectively. As of Dec. 31, 2024, the Company had cash and cash
equivalents of $29.9 million and an accumulated deficit of $650.2
million.
The Company's history of significant losses, its negative cash
flows from operations, potential near-term increased
covenant-driven amortization payments under its Credit Agreement,
its limited liquidity resources currently on hand, and its
dependence on its ability to obtain additional financing to fund
its operations after the current resources are exhausted, about
which there can be no certainty, have resulted in management's
assessment that there is substantial doubt about the Company's
ability to continue as a going concern for a period of at least 12
months from the issuance date of the financial statements included
in its Annual Report on Form 10-K.
Stamford, Conn.-based Ernst & Young LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated Mar. 28, 2025, citing that the Company has suffered recurring
losses from operations, has used significant cash in operations and
has stated that substantial doubt exists about the Company's
ability to continue as a going concern.
BTI said, "In order to mitigate the current and potential future
liquidity issues, we have undertaken the Reprioritization and other
restructuring actions, and may, among other things, seek to raise
capital through the issuance of common stock, or by restructuring,
refinancing, and/or amending the terms of the Credit Agreement
(including with respect to regulatory related events of default
that do not contain a cure period) or pursue other strategic
alternatives. However, such transactions may not be successful and
we may not be able to raise additional equity and/or financing
necessary to meet our obligations. Moreover, our Credit Agreement
contains covenants that we may be unable to comply with and which
could result in the acceleration of our debt service obligations,
further reducing our capital resources and ability to fund our
operations. As such, there can be no assurance that we will be able
to continue as a going concern and we may be forced to delay,
reduce or discontinue our product development programs or
commercialization efforts in order to preserve cash."
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/87h6u8nk
Headquartered in New Haven, Conn., BioXcel Therapeutics, Inc., is a
biopharmaceutical company utilizing artificial intelligence to
develop transformative medicines in neuroscience and, through the
Company's wholly owned subsidiary, OnkosXcel Therapeutics LLC,
immuno-oncology. The Company is focused on utilizing cutting-edge
technology and innovative research to develop high-value
therapeutics aimed at transforming patients' lives. The Company
employs various AI platforms to reduce therapeutic development
costs and potentially accelerate development timelines.
As of Dec. 31, 2024, the Company had $38.3 million in total assets,
$131.4 million in total liabilities, and a total stockholders'
deficit of $93.1 million.
BLH TOPCO: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of BLH TopCo,
LLC and its affiliates.
The committee members are:
1. Edward Don & Company
Attn: John Fahey
9801 Adam Don Pkwy
Woodridge, IL 60517
Phone: 708-883-8362
Email: Faheyj@don.com
2. Brookfield Properties Retail Inc.
Attn: Julie Minnick Bowden
350 N. Orleans St., Suite 300
Chicago, IL 60654
Phone: 312-213-9545
Email: Julie.bowden@brookfieldproperties.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About BLH TopCo
BLH TopCo, LLC is the operator and franchisor of locally themed,
social gastrobars under the "Bar Louie" brand. Bar Louie is an
upscale neighborhood bar and eatery. Established in 1991 in
Chicago, Ill., BLH TopCo and its affiliates currently operate 31
locations, franchise an additional 17, and employ roughly 1,400
individuals across 19 states. Bar Louie restaurants are situated in
various settings, such as lifestyle centers, conventional shopping
malls, event venues, central business districts, and other unique
standalone locations.
BLH TopCo and its affiliates filed Chapter 11 petitions (Bankr. D.
Del. Lead Case No. 25-10576) on March 26, 2025. In its petition,
BLH TopCo reported between $1 million and $10 million in assets and
between $50 million and $100 million in liabilities.
Judge Craig T. Goldblatt handles the cases.
The Debtors are represented by Thomas J. Francella, Jr., Esq., and
Mark W. Eckard, Esq., attorneys at Raines Feldman Littrelll, LLP.
Bankruptcy Management Solutions, Inc., doing business as Stretto,
serves as the Debtors' claims and noticing agent.
CALUMET INC: Moody's Assigns 'Caa1' CFR, Outlook Negative
---------------------------------------------------------
Moody's Ratings has assigned Caa1 Corporate Family Rating, Caa1-PD
Probability of Default Rating to Calumet, Inc. (Calumet), the new
holding company and the indirect owner of Calumet Specialty
Products Partners, L.P. Moody's also assigned Calumet's SGL-3
Speculative Grade Liquidity Rating and a negative outlook.
Concurrently, Moody's have withdrawn Caa1 CFR and Caa1-PD
Probability of Default Rating, and SGL-3 Speculative Grade
Liquidity Rating (SGL) of Calumet Specialty Products Partners,
L.P., affirmed Caa2 ratings on its existing backed senior unsecured
notes, and rated its new backed senior unsecured 2028 notes Caa2.
The outlook for Calumet Specialty Products Partners, L.P. remains
negative.
RATINGS RATIONALE
Calumet's Caa1 CFR reflects its modest scale and high leverage with
debt/EBITDA reaching 9.5x and EBITDA/Interest declining to below 1x
at the end of 2024. In recent years Calumet generated negative free
cash flow. The company is making a transformational investment at
its Montana Renewables facility, an unrestricted subsidiary of
Calumet Specialty Products Partners, L.P., and has recently secured
low-cost financing from the Department of Energy (DOE loan) to fund
this project. In Q1 2025, Calumet has drawn $782 million under the
DOE loan and used the proceeds to refinance existing higher cost
debt at the unrestricted subsidiary, reducing its future interest
payments in 2025-2028, when the loan will start amortization.
Pending a successful completion of the project, Calumet's debt
service capacity is underpinned by its specialty product
operations. To reduce leverage and achieve a more sustainable
capital structure, the company aims to deliver a significant
improvement in operating margins in its core business in 2025-26.
The specialty business benefits from geographic, product, customer
and end market diversification, but its earnings remain relatively
volatile and sensitive to general economic growth trends.
Calumet's liquidity is tight but adequate in 2025-26, and is
supported by proceeds from the recently placed $100 million 2028
senior unsecured notes, about $78 million proceeds from the drawing
on the DOE loan and $110mm from an asset sale. Calumet plans to use
these funds, as well as some future operating cash flows, to meet
$364 million bond maturity in April 2026. The company also had $116
million available under its 2027 revolver bank facility at the end
of 2024. Its next significant maturity after this refinancing will
be $325 million notes maturing in January 2027.
The assessment of liquidity relies on the expectation that Calumet
will reduce its capital investment in 2025, and will fund all
investment in the renewables project through further drawings on
the DOE loan. The liquidity position also depends on the company's
ability to deliver strong improvement in operating margins in
2025-26 to fund working capital and other operating requirements.
The new senior unsecured 2028 notes are issued by Calumet Specialty
Products Partners, L.P. and are rated Caa2 at the same level as its
existing senior unsecured notes. The notes are rated one notch
below the Caa1 CFR, reflecting the presence of senior secured debt
in the capital structure, including the senior secured revolver
facility and 2029 senior secured notes.
The negative outlook reflects high degree of uncertainty about the
pace of deleveraging in 2025-26 given Calumet's elevated debt
quantum beyond sustainable levels, its refinancing schedule in 2026
and 2027, and increased market volatility. A less supportive
environment for refined products in the following months could
affect the company's projected free cash flow generation and make
it more reliant on capital markets to address upcoming maturities;
this scenario could be challenging if increased volatility persist.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if Calumet continues to generate
negative free cash flow, or its interest coverage (EBTIDA /
Interest Expense) does not recover to above 1.1x, or if refinancing
needs are not addressed resulting in a rising risk of
restructuring.
The ratings could be upgraded if the company meaningfully reduces
debt and financial leverage, with interest coverage approaching
2.0x, establishing a clear path to a sustainable capital structure.
The upgrade of the ratings will also require Calumet to address
its debt maturities, maintain adequate liquidity position, and
consistently generate positive free cash flow.
The principal methodology used in these ratings was Refining and
Marketing published in August 2021.
Calumet, Inc., headquartered in Indianapolis, Indiana, is an
independent North America producer of specialty hydrocarbon
products, such as lubricants, solvents and waxes, and fuel
products. Calumet operates three business segments: Specialty
Products and Solutions, Performance Brands and Montana/Renewables.
CASTLE US: Obtains $250MM Funding, Extends Debt Deadlines
---------------------------------------------------------
Cameron Baker of Bloomberg Law reports Castle US Holding Corp., an
affiliate of Cision, has raised $250 million in new financing and
extended its debt maturities beyond 2030, with the support of more
than 90% of its debt holders.
According to Bloomberg Law, the funding will provide greater
financial flexibility and support the company's growth strategy.
The transaction is backed by roughly 99% of lenders under the
senior secured facility and about 95% of unsecured noteholders. As
part of the deal, the company has reduced its debt principal and
pushed out maturity dates beyond 2030.
"With increased liquidity and extended maturities, we're
well-positioned to advance our long-term growth strategy," said
Cision CEO Guy Abramo.
About Castle US Holding Corp.
Castle US Holding Corporation provides database tools and software
to public relations and communications professionals.
CB POLY: S&P Alters Outlook to Negative, Affirms 'B' ICR
--------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable and
affirmed all of its ratings on U.S.-based promotional products
supplier CB Poly Investments LLC (doing business as Polyconcept),
including the 'B' issuer credit rating.
The negative outlook reflects the uncertainty around Polyconcept's
operating performance over the next 12 months and the potential for
EBITDA to decline materially given its significant exposure to
tariffs on imports from China, the risk of tariff implementation in
other countries the company sources its products from, the
softening economy, and the risks associated with managing its
product pricing, sales volumes, and sourcing options to limit
EBITDA declines.
The outlook revision reflects Polyconcept's weaker-than-expected
operating performance and FOCF in 2024, as well as the rising risk
of persistent cash flow deficits and underperformance in 2025. S&P
said, "Polyconcept significantly underperformed our 2024 earnings
and cash flow growth expectations due to softness in the
promotional products industry and general economic uncertainty. We
believe its EBITDA generation was also hampered by investments in
the company's sales teams, some market share decline in its apparel
category, and elevated freight and lease expenses over the course
of the year." As a result, the company's S&P Global
Ratings-adjusted EBITDA decreased to about $150 million in 2024
from about $175 million in 2023 and its S&P Global Ratings-adjusted
leverage increased to the low-6x area in 2024 from the mid- to
high-4x area the prior year.
In addition, Polyconcept had a slight cash flow deficit in 2024 due
to EBITDA decline and an increase in working capital as the company
overestimated fourth-quarter sales volumes and had elevated
inventory levels at year end. Polyconcept and its industry peers
typically have a mismatch in timing of when a customer places an
order and when the company needs to place an order with suppliers.
While it only has limited visibility on customer orders, with most
having a lead time of about six weeks, supplier orders are placed
four to six months in advance.
S&P said, "We expect continued softness in the promotional products
industry in 2025, though we believe Polyconcept's investment in its
sales team and efforts to improve its apparel offerings will
partially offset industry weakness. Additionally, we expect the
company will enact price increases in 2025, though the very high
tariffs that the U.S. has imposed on the countries where
Polyconcept sources its products from could force the company to
significantly increase prices, which, in turn, is likely to lead to
a steep decline in order volumes.
"We expect tariffs will pose a risk to Polyconcept's operating
performance in 2025. The extremely high tariffs the U.S. government
recently implemented on imports from China will likely have a
material impact on Polyconcept's operations, and the tariffs that
were announced, but currently paused, on Vietnam, Bangladesh, and
Cambodia would also hinder the company if implemented. About two
thirds of Polyconcept's sales volume is hard goods that are
primarily sourced from China, while soft goods like apparel are
sourced from a number of countries including Vietnam, Bangladesh,
and Cambodia. While we expect the company will look to negotiate
with its suppliers and pass additional costs onto their customers,
we believe demand for promotional products is highly elastic due to
their discretionary nature, and there may be a steep decline in
volumes as a result of significant price increases."
In addition, general economic uncertainty as well as the looming
possibility of a recession could further reduce corporate spending
on promotional products. S&P said, "Our current base case assumes
the company's EBITDA generation in 2025 is below 2024 levels as it
sells the inventory purchased before the increase in tariffs over
the first half of the year and attempts to manage pricing and its
product mix while working to pass along increased costs to
customers. We expect the first half of the year to mitigate some of
the expected volume declines in the second half of 2025. That said,
our negative outlook reflects the significant uncertainty around
the impacts of tariffs and the possibility the company's earnings
are materially weaker than our base case."
S&P Global Ratings believes there is a high degree of
unpredictability around policy implementation by the U.S.
administration and possible responses--specifically with regard to
tariffs--and the potential effect on economies, supply chains, and
credit conditions around the world. S&P said, "As a result, our
baseline forecasts carry a significant amount of uncertainty. As
situations evolve, we will gauge the macro and credit materiality
of potential and actual policy shifts and reassess our guidance
accordingly."
S&P said, "We expect Polyconcept to maintain adequate liquidity and
benefit from a decline in working capital in 2025. The company had
about $27 million of cash on the balance sheet and about $67
million available on its asset-based revolver as of Dec. 31, 2024.
The company typically builds inventory and generates negligible
FOCF in the first and third quarters of any given year and then
generates FOCF in the second and fourth quarters. While inventory
levels were elevated as of year-end 2024 due to weaker sales
volumes, Polyconcept made additional inventory purchases in the
first quarter of 2025 in anticipation of the tariffs. We expect the
company will sell down its existing inventory and make more prudent
purchasing decisions in the back half of 2025, which should result
in a cash flow benefit for the year."
The negative outlook reflects the uncertainty around Polyconcept's
operating performance over the next 12 months and the potential for
EBITDA to decline significantly given its significant exposure to
tariffs on imports from China, the risk of tariff implementation in
other countries that the company sources its products from, the
softening economy, and the risks associated with the company
managing its product pricing, sales volumes, and sourcing options
to limit EBITDA declines.
S&P could lower the rating if Polyconcept's leverage approaches
6.5x or it no longer believe the company can sustain FOCF to debt
in the low-single-digit percent area. This could happen if:
-- Uncertainty in the economy leads to lower demand and greater
EBITDA decline and sustained tariffs pressure margins; or
-- The company shifts toward a more aggressive financial policy,
such as a large, debt-funded acquisition or dividend.
S&P could change its outlook on Polyconcept to stable if it
believes the company will sustain leverage below 6.5x and FOCF to
debt in the mid-single-digit percent area or better through:
-- Stronger-than-expected operating performance and cash flows,
with EBITDA margins sustained in the high-teens percent area;
-- The demonstration of a conservative financial policy by
refraining from large, debt-financed dividends or acquisitions;
and
-- There is more certainty around its cost structure and ability
to pass along costs.
CC 1400 ALICEANNA: Taps Whiteford Taylor & Preston as Attorney
--------------------------------------------------------------
CC 1400 Aliceanna Street LLC seeks approval from the U.S.
Bankruptcy Court for the District of Maryland to hire Whiteford,
Taylor & Preston L.L.P. as attorneys.
The firm's services include:
a. providing the Debtor legal advice with respect to its
powers and duties as a debtor-in-possession and in the operation of
its business;
b. representing the Debtor in defense of any proceedings
instituted to reclaim property or to obtain relief from the
automatic stay under Sec 362(a) of the Bankruptcy Code;
c. preparing any necessary applications, answers, orders,
operating reports, and other legal papers, and appearing on the
Debtor's behalf in proceedings instituted by or against the
Debtor;
d. assisting the Debtor with any sale of its assets under
Section 363 of the Bankruptcy Code;
e. assisting the Debtor in the preparation of schedules,
statements of financial affairs, and any amendments thereto which
the Debtor may be required to file in this case;
f. assisting the Debtor in the preparation of a plan that
complies with the Bankruptcy Code;
g. prosecuting affirmative cases on behalf of the Debtor
seeking the recovery of any assets;
h. assisting the Debtor with other legal matters, including,
among others, securities, corporate, real estate, tax, intellectual
property, employee relations, general litigation, and bankruptcy
legal work; and
i. performing all of the legal services for the Debtor which
may be necessary or desirable in this bankruptcy case.
The firm will be paid at these rates:
Partners and Of Counsel $395 to $1,250 per hour
Associates $390 to $555 per hour
Legal Assistants/Paralegals $385 to $485 per hour
Whiteford received retainer in the amount of $25,000 from Harbor
Management Group LLC, an affiliate of the Debtor.
Brent C. Strickland, Esq., a partner at Whiteford, Taylor & Preston
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 through:
Brent C. Strickland, Esq.
Whiteford, Taylor & Preston LLP
111 Rockville Pike, Suite 800
Rockville, MD 20850
Tel: (410) 347-9402
Fax: (410) 223-4302
Email: bstrickland@wtplaw.com
About CC 1400 Aliceanna Street LLC
CC 1400 Aliceanna Street LLC is a real estate development company
based in Baltimore, Maryland.
CC 1400 Aliceanna Street LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-12153) on March 13,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
The Debtor is represented by Brent C. Strickland, Esq. at
WHITEFORD, TAYLOR & PRESTON L.L.P.
CHEMOURS CO: S&P Affirms 'BB-' ICR, Outlook Negative
----------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issuer credit rating on The
Chemours Co. The outlook is negative.
The negative outlook reflects that Chemours' credit metrics are at
the lower end of the range expected at the rating and its view that
2025 could continue to be challenging, given macroeconomic
uncertainty and global tariff implications.
S&P said, "Our negative outlook reflects soft 2024 credit metrics
and increased macroeconomic uncertainty. The higher probability of
a weaker macroeconomic environment, credit metrics, and demand
presents a downside risk for Chemours to achieve our expected
earnings and credit measures over the next year. These issues
include the ongoing softness in cyclical end markets such as
coatings and hydrogen. Furthermore, in the first quarter of 2025,
we anticipate further declines in the Titanium Technologies (TT)
segment's adjusted EBITDA due to operational headwinds and adverse
weather affecting U.S. sites. Moreover, the Advanced Performance
Materials (APM) segment faces softer demand in hydrogen and
semiconductor markets. We expect higher input costs in the Thermal
& Specialized Solutions (TSS) business, including costs associated
with ramping up new Opteon refrigerant capacity, to hamper
performance in the first half. We expect freon prices to remain low
in 2025 due to elevated inventory, which could limit TSS
profitability."
S&P Global Ratings believes there is a high degree of
unpredictability around policy implementation by the U.S.
administration and possible responses--specifically with regard to
tariffs--and the potential effect on economies, supply chains, and
credit conditions around the world. As a result, S&P's baseline
forecasts carry a significant amount of uncertainty. As situations
evolve, it will gauge the macro and credit materiality of potential
and actual policy shifts and reassess our guidance accordingly.
Chemours remediated all material weaknesses disclosed in the 2023
10-K by year end 2024, including issues related to the tone at the
top, information and communication, and vendor master files. S&P
said, "We view these proactive measures as a credit positive.
Furthermore, we have not seen further constraints from vendors,
customers, or market participants since the full implications of
the former senior management's working capital actions came to
light. Therefore, we revised our opinion of the company's
management and governance to neutral from negative.
"We believe Chemours' business and financial strengths can support
credit quality. We continue to view its market position and
competitive position as credit positives. Strengths include its
competitive advantages and the market-leading positions of its key
products in the TT, TSS, and APM businesses." The large scale of
the company's plants and technological capabilities enable it to
use a variety of inputs that contribute to its low-cost position.
For example, Chemours produces titanium dioxide using the chloride
process, which generally creates a superior, higher-value product
than the alternate sulfate process.
S&P said, "Our rating does not reflect increases in environmental
liabilities beyond those already provided for by the company. In
January 2021, Chemours, DuPont, Corteva, and EI du Pont de Nemours
& Co. (EID), a subsidiary of Corteva, entered a binding memorandum
of understanding to share potential legacy liabilities relating to
per- and polyfluoroalkyl substances arising out of pre-July 2015
conduct. The agreement provides a framework under which Chemours is
responsible for 50% of potential liabilities for 20 years, or a
maximum of $2 billion, whichever comes sooner. In 2023, the company
released funds held in escrow to fund, in part, the U.S. public
water system settlement agreement for $592 million. We expect the
next escrow payment of $50 million by Sept. 30, 2025, and by Sept.
30 of each subsequent year through 2028. The agreement sets the
target balance of the escrow account to $700 million by 2028, with
Chemours making 50% of the deposits and DuPont and Corteva together
making the rest.
"At this point, approximately $2 billion, of which Chemours has
paid about $1 billion, has been paid out for legacy liabilities. We
would consider liabilities exceeding the agreed upon $4 billion a
credit negative for Chemours.
"The negative rating outlook on Chemours reflects potentially
weaker credit metrics than our expectations. Furthermore, we
believe macroeconomic uncertainty, including global tariffs, could
weaken demand across the company's end markets. We view positively
the remediation of material weaknesses set forth last year. Over
the next year, we expect stable to slightly strengthening earnings
and credit metrics, including, weighted-average funds from
operations (FFO) to debt in the low- to mid-teens percentage area.
"In addition, we factor in Chemours' known environmental and
contingent liabilities and do not at this point assume any sizable
increase. We also do not assume any acquisitions, debt-funded
shareholder rewards, or sale of significant businesses in our base
case."
S&P could lower its ratings on Chemours within the next year if:
-- S&P expects weighted-average FFO to debt to drop below 12%
without a near-term remedy. This could occur if earnings decline
significantly in 2025 due to raw material shortages or weakened
demand that reduces margins more than 200 basis points: or
-- It becomes apparent that Chemours' provisions and accruals for
contingent liabilities are insufficient, and it will likely need to
increase them substantially.
S&P will consider revising the outlook to stable over the next year
if:
-- S&P expects credit metrics to improve, such as FFO to debt to
the high-teen percentage area; or
-- The company outperforms S&P's expectations of its three major
business segments above its projections.
S&P said, "Under this scenario, we expect FFO to total debt above
20% and adjusted EBITDA margins stay in the low- to mid-20% area.
However, we would also consider the volatility of its earnings from
the titanium dioxide business and assess the sustainability of
improvements before taking a positive rating action. We will review
the potential for any credit risks related to new environmental
issues or an increase in risk related to current issues before
considering an upgrade."
CIBUS INC: CLO Holds 99,419 Class A Shares, 92,010 Stock Options
----------------------------------------------------------------
Jason Stokes, CLO, General Counsel, and Secretary of Cibus, Inc.,
disclosed in a Form 3 filed with the U.S. Securities and Exchange
Commission that as of March 28, 2025, he beneficially owned 99,419
shares of Class A Common Stock directly and holds options to
purchase an additional 92,010 shares of Class A Common Stock at an
exercise price of $5.75 per share, with vesting occurring annually
over four years starting November 11, 2025.
A full-text copy of Mr. Stokes' SEC Report is available at:
https://tinyurl.com/ywsrws4n
About Cibus Inc.
Headquartered in San Diego, Calif., Cibus, Inc. is an agricultural
biotechnology company that uses proprietary gene editing
technologies to develop plant traits (or specific genetic
characteristics) in seeds. Its primary business is the development
of plant traits that help address specific productivity or yield
challenges in farming such as traits for weed management and
disease resistance. These traits are referred to as productivity
traits because they can improve farming productivity, profitability
and sustainability. Certain productivity traits lead to the
reduction in the use of chemicals like fungicides, insecticides, or
the reduction of fertilizer use, while others make crops more
adaptable to their environment or to climate change. The ability
to develop productivity traits in seeds that can increase farming
productivity and reduce the use of chemicals in farming is the
promise of gene editing technologies.
San Diego, Calif.-based BDO USA, P.C., the Company's auditor since
2023, issued a "going concern" qualification in its report dated
March 20, 2025, attached to the Company's Annual Report on Form
10-K for the year ended December 31,2024. The report highlights
that the Company has suffered recurring losses from operations and
negative cash flows from operations that raise substantial doubt
about its ability to continue as a going concern.
CIBUS INC: SVP Discloses 93,730 Shares, 41,000 Stock Options
------------------------------------------------------------
Noel Sauer, SVP of Research at Cibus, Inc., disclosed in a Form 3
filed with the U.S. Securities and Exchange Commission that as of
March 28, 2025, he beneficially owns 93,730 shares of Class A
Common Stock directly and holds options to purchase an additional
41,000 shares of Class A Common Stock at an exercise price of $5.75
per share, with vesting occurring annually over four years starting
November 11, 2025.
A full-text copy of Mr. Sauer SEC Report is available at:
https://tinyurl.com/2af6wptk
About Cibus Inc.
Headquartered in San Diego, Calif., Cibus, Inc. is an agricultural
biotechnology company that uses proprietary gene editing
technologies to develop plant traits (or specific genetic
characteristics) in seeds. Its primary business is the development
of plant traits that help address specific productivity or yield
challenges in farming such as traits for weed management and
disease resistance. These traits are referred to as productivity
traits because they can improve farming productivity, profitability
and sustainability. Certain productivity traits lead to the
reduction in the use of chemicals like fungicides, insecticides, or
the reduction of fertilizer use, while others make crops more
adaptable to their environment or to climate change. The ability
to develop productivity traits in seeds that can increase farming
productivity and reduce the use of chemicals in farming is the
promise of gene editing technologies.
San Diego, Calif.-based BDO USA, P.C., the Company's auditor since
2023, issued a "going concern" qualification in its report dated
March 20, 2025, attached to the Company's Annual Report on Form
10-K for the year ended December 31,2024. The report highlights
that the Company has suffered recurring losses from operations and
negative cash flows from operations that raise substantial doubt
about its ability to continue as a going concern.
CIFC FALCON 2020: S&P Lowers Class E Notes Rating to 'B+ (sf)'
--------------------------------------------------------------
S&P Global Ratings lowered its rating on the class E debt from CIFC
Falcon 2020 Ltd., a U.S. CLO managed by CIFC Asset Management LLC.
S&P also removed the class E debt from CreditWatch, where it was
placed with negative implications on March 14, 2025. At the same
time, S&P affirmed its ratings on the class A, B, C, and D debt
from the same transaction.
The CLO recently exited its reinvestment period in January 2025 and
the debt have yet to experience paydowns. The rating actions follow
its review of the transaction's performance using data from the
February 2025, trustee report.
Though the trustee-reported overcollateralization (O/C) ratios of
all tranches are currently passing, they have declined since
issuance. The reported O/C ratios changed between the February 2025
report and the January 2020 report (when the CLO became
effective):
-- The class A/B O/C ratio declined to 128.27% from 129.96%.
-- The class C O/C ratio declined to 117.58% from 119.13%.
-- The class D O/C ratio declined to 110.98% from 112.43%.
-- The class E O/C ratio declined to 107.36% from 108.77%.
The drop in the O/C ratios is primarily due to par losses since
issuance. In addition, the weighted average recovery rate (WARR)
has declined across all rating categories (the 'AAA' WARR has
dropped to 39.30% per the February 2025 trustee report compared to
the 41.70% 'AAA' WARR reported in the effective date report). As a
result of these two factors, credit support has weakened for all
tranches, and the cash flows are not passing at the current rating
levels for the class C, D, and E debt.
Since issuance, the deal has experienced a par loss of slightly
over 1.00% of the $350 million target par. This calculation is
based on the difference between the target par, and the combined
aggregate principal balance and principal proceeds in the
collection account as of February 2025. Additionally, there has
been a decline in the portfolio's overall credit quality as
evidenced from the increased S&P Global Ratings' weighted average
rating factor level to 2830.00 according to the February 2025
trustee report from 2615.70 per the effective date report and the
increase in 'CCC' assets to $21.30 million (6.15% of the portfolio)
from none over the same period. The combination of these factors
resulted in the deterioration in credit quality, and therefore,
cashflow cushions since closing for the class C, D, and E debt.
Though the cash flows for the class C and D debt were pointing to
lower ratings, the corresponding tranches' O/C ratio tests are
still passing with cushion, the portfolio has no defaulted assets,
and the exposure to 'CCC' rated collateral remains below the 7.5%
threshold for a haircut to the test despite being elevated from
issuance, which indicates that the declines in credit support have
been somewhat limited to this point. S&P said, "Additionally, the
deal will begin to start paying down the rated debt now that the
reinvestment period has expired so we expect that delevering should
benefit the deal. Therefore, we determined that at this time,
credit support remains adequate for these two classes."
S&P said, "However, we did opt to lower the rating on the class E
debt. Despite the cash flows indicating a lower rating than the
actions indicate, we limited the downgrade to one notch after
considering other qualitative aspects, such as relatively low
exposure to 'CCC' and 'CCC-' rated assets, no defaults, and passing
O/Cs. However, any further par losses or increase in defaults could
lead to potential negative rating actions in the future by
deteriorating the remaining credit support to the class C, D, or E
debt."
The affirmed ratings for the class A and B debt reflect adequate
credit support at the current rating levels.
S&P said, "In line with our criteria, our cash flow scenarios
applied forward-looking assumptions on the expected timing and
pattern of defaults and recoveries upon default under various
interest rate and macroeconomic scenarios. In addition, our
analysis considered the transaction's ability to pay timely
interest and/or ultimate principal to each of the rated tranches.
The results of the cash flow analysis--and other qualitative
factors as applicable--demonstrated, in our view, that all of the
rated outstanding classes have adequate credit enhancement
available at the rating levels associated with this rating action.
"We will continue to review whether, in our view, the ratings
assigned to the debt remain consistent with the credit enhancement
available to support them and take rating actions as we deem
necessary."
Rating Lowered And Removed From CreditWatch Negative
CIFC Falcon 2020 Ltd./CIFC Falcon 2020 LLC
Class E to 'B+ (sf)' from 'BB- (sf)/Watch Neg'
Ratings Affirmed
CIFC Falcon 2020 Ltd./CIFC Falcon 2020 LLC
Class A: AAA (sf)
Class B: AA (sf)
Class C: A (sf)
Class D: BBB- (sf)
COLD SPRING: Seeks to Hire Schwartz Sladkus as Special Counsel
--------------------------------------------------------------
Cold Spring Acquisition, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Schwartz Sladkus Reich Greenberg Atlas LLP as special counsel.
Schwartz Sladkushas will represent the Debtor in legal issues
related to health care reimbursement and collection of outstanding
receivables.
The firm will be paid at these rates:
Partner $490 to $700 per hour
Associate $350 to $425 per hour
Paralegal $200 to $300 per hour
The firm's contingency fee rates are either 20 percent or 25
percent of amounts recovered depending upon whether litigation or
other manner of judicial intervention is undertaken in the course
of recovery.
Schwartz Sladkus is a disinterested party in the matters in which
it is to be engaged within the meaning and intent of 11 U.S.C. Sec.
101(14), according to court filings.
The firm can be reached through:
Jason B. Atlas, Esq.
Schwartz Sladkus Reich Greenberg Atlas LLP
444 Madison Ave 6th Floor
New York, NY 10022
Phone: (212) 743-7003
Email: jatlas@ssrga.com
About Cold Spring Acquisition
Cold Spring Acquisition, LLC operates a skilled nursing and
rehabilitation facility in Woodbury, N.Y. In particular, the senior
care facility provides hospice, dementia care, medical needs and
rehabilitation care, and runs a senior day program.
Cold Spring Acquisition filed Chapter 11 petition (Bankr. S.D. N.Y.
Case No. 25-22002) on January 2, 2025, with $1 million to $10
million in assets and $50 million to $100 million in liabilities.
Judge Sean H. Lane oversees the case.
The Debtor is represented by Schuyler G. Carroll, Esq. at Manatt,
Phelps & Phillips, LLP.
CONNEXA SPORTS: Taps Enrome to Replace Bush & Associates as Auditor
-------------------------------------------------------------------
Connexa Sports Technologies Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that the
Board of Directors and the audit committee approved the engagement
of Enrome LLP as the Company's independent registered public
accounting firm for the fiscal year ended April 30, 2025 and
dismissed Bush & Associates CPA as the Company's independent
registered public accounting firm.
Until the engagement of Enrome, B&A was the Company's auditor,
although it had not yet audited any of the Company's consolidated
financial statements, as the Company's previous auditor, Olayinka
Oyebola & Co., had audited the Company's consolidated financial
statements for the fiscal years ended April 30, 2023 and 2024. The
Company's quarterly report on Form 10-Q filed on March 24, 2025 was
filed after the Board's decision to engage Enrome. The substitution
of Enrome for B&A was to address challenges of the Company and B&A
communicating in an effective and timely manner, given B&A's
location in Henderson, Nevada, and the Company's management being
based in Hong Kong.
There have been no disagreements with B&A, whether or not resolved,
on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which, if not
resolved to the satisfaction of B&A, would have caused B&A to make
reference to the subject matter of the disagreement in connection
with its reports; and there were no reportable events (as that term
is described in Item 304(a)(1)(v) of Regulation S-K) during the
period B&A was engaged as the Company's auditor.
About Connexa Sports
Headquartered in Windsor Mill, Maryland, Connexa Sports
Technologies Inc. -- www.connexasports.com -- is a connected sports
company delivering products, technologies, and services across a
range of activities in sports. Connexa's mission is to reinvent
sports through technological innovation driven by an unwavering
focus on today's sports consumer.
Connexa reported $21,583,761 in total assets, $13,542,980 in total
liabilities, and $8,040,781 in total stockholders' equity as of
October 31, 2024.
Lagos, Nigeria-based Olayinka Oyebola & Co., the Company's former
auditor 2023, issued a "going concern" qualification in its report
dated July 24, 2024, citing that the Company suffered an
accumulated deficit of $(167,387,028), net loss of $(15,636,418),
and decline in net sales. These matters raise substantial doubt
about the Company's ability to continue as a going concern.
On October 30, 2024, the Board of Directors and the audit committee
of the Company approved the engagement of Bush & Associates CPA as
the Company's independent registered public accounting firm for the
fiscal year ended April 30, 2025, effective immediately, and
dismissed Olayinka Oyebola & Co as the Company's independent
registered public accounting firm.
The reason for the dismissal of OOC and the engagement of B&A is
that due to the charges brought by the U.S. Securities and Exchange
Commission against OOC for allegedly aiding and abetting a
securities fraud, the risk of continuing with OOC as the Company's
auditor is no longer tolerable to the Company.
CONUMA RESOURCES: S&P Cuts ICR to 'SD' on Distressed Restructuring
------------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Conuma Resources Ltd. to 'SD' (selective default) from 'CCC+' and
its issue ratings on the company's senior secured notes to 'D' from
'CCC+'
On April 15, 2025, Conuma completed a debt restructuring to
exchange up to US$140 million of its US$250 million senior secured
notes for priority notes. Additionally, the company issued US$50
million of new priority notes and raised US$25 million of new money
from its financial sponsors through the issuance of preferred
shares and committed an additional US$25 million if liquidity falls
below C$40 million.
The downgrade follows Conuma's completion of a distressed debt
restructuring, including issuance of priority debt ahead of its
existing senior notes. On April 15, 2025, Conuma reached an
agreement with a majority of its senior secured noteholders to make
certain amendments to the terms under the notes, including
increasing the amount of permitted priority lien debt to US$325
million from US$35 million and eliminating the contractual
“anti-layering” provision to permit subordination of the senior
notes.
The company then announced it had sold up to US$50 million of
priority notes due 2028 (not rated) to bondholders that own most of
its existing senior secured notes (the "committing holders"). As
part of the financing arrangement, the company is also exchanging
up to US$140 million of the new priority notes for an equivalent
amount of its senior secured notes held by the committing holders.
S&P said, "We view this transaction as distressed and tantamount to
a default because a significant portion of existing noteholders
were primed as part of this transaction, which required an
amendment to the indenture. In addition, we believe the company
conducted this exchange in distress due to its deteriorated
liquidity position and weak cash flow generation amid a challenging
metallurgical coal price environment. As a result, we lowered our
long-term issuer credit rating on Conuma to 'SD' from 'CCC+' and
lowered our issue level ratings on the company's senior secured
notes to 'D' from 'CCC+'.
"We plan to reevaluate the issuer credit rating within the next few
days. We plan to raise our issuer credit rating on Conuma as soon
as practical, likely within days, to a level that reflects the
ongoing risk of default based on its new capital structure. Our
review will focus on our view of the risk to the company's
liquidity and the likelihood of future distressed debt
restructurings."
CRYPTO COMPANY: Delays 2024 10-K Filing Due to Limited Resources
----------------------------------------------------------------
The Crypto Company filed a Notification of Late Filing on Form
12b-25 with the U.S. Securities and Exchange Commission, informing
that it has experienced a delay in filing its Annual Report on Form
10-K for the year ended December 31, 2024 by March 31, 2025, the
original due date for such filing. The Company is unable to file
its Form 10-K within the prescribed time period because it requires
additional time to prepare and review its financial statements,
including the notes thereto, for the year ended December 31, 2024,
primarily due to:
(i) its limited resources of financial reporting and
accounting personnel resulting in the need for additional time to
close its books and records, complete its financial statement
preparation and finalize its review procedures and
(ii) the Company's need for additional time for compilation and
review to ensure adequate disclosure of certain information
required to be included in the Form 10-K.
As a result, the Company is unable to file its Form 10-K by the
prescribed filing date without unreasonable effort or expense. The
Company currently anticipates that it will be able to complete the
work needed in time for the Company to file its Annual Report
within the 15-day extension provided under Rule 12b-25 of the
Securities Exchange Act of 1934, as amended.
About Crypto Company
Malibu, Calif.-based The Crypto Company --
https://www.thecryptocompany.com -- is engaged in the business of
providing consulting services and education for blockchain
technology and for the building of technological infrastructure and
enterprise blockchain technology solutions. During 2023, the
Company generated revenues and incurred expenses solely through
these consulting operations. In February 2022, the Company acquired
bitcoin mining equipment and entered into an arrangement with a
third party to host and operate the equipment. However, by the end
of 2022, the Company had exited that Bitcoin mining business.
Crypto Company reported a net loss of $4.92 million for the year
ended December 31, 2023, compared to a net loss of $5.66 million
for the year ended December 31, 2022. As of June 30, 2024, Crypto
Company had $1,293,153 in total assets, $5,939,990 in total
liabilities, and $4,646,837 in total stockholders' deficit.
Lakewood, Colorado-based BF Borgers CPA PC, the Company's former
auditor, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
On May 8, 2024, the Audit Committee of the Board of Directors of
the Company approved the dismissal of BF Borgers CPA PC as the
Company's independent registered public accounting firm after the
firm and its owner, Benjamin F. Borgers, were charged by the
Securities and Exchange Commission with deliberate and systemic
failures to comply with Public Company Accounting Oversight Board
(PCAOB) standards in its audits and reviews incorporated in more
than 1,500 SEC filings from January 2021 through June 2023; falsely
representing to their clients that the firm's work would comply
with PCAOB standards; fabricating audit documentation to make it
appear that the firm's work did comply with PCAOB standards; and
falsely stating in audit reports included in more than 500 public
company SEC filings that the firm's audits complied with PCAOB
standards. Borgers agreed to pay a $14 million civil penalty and
agreed to permanent suspensions from appearing and practicing
before the Commission as accountants, effective immediately.
On May 8, 2024, the Company engaged Bush & Associates CPA LLC as BF
Borgers' replacement. The decision to change independent registered
public accounting firms was made with the recommendation and
approval of the Audit Committee of the Company.
CTN HOLDINGS: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of CTN
Holdings, Inc. and its affiliates.
The committee members are:
1. InterPrivate III Financial Partners Inc.
c/o: Brandon Bentley
290 6th Avenue, 5H,
New York, NY 10014
Phone: 212-203-3721
Email: legal@interprivate.com
2. Socure Inc.
Attn: Aviad Levin
885 Tahoe Blvd., Suite #1
Incline Village, NV 89451
Phone: 201-290-4226
Email: aviad@socure.com
3. Eden Reforestation Projects and Compassionate Carbons, LLC
Attn: Glen Prior, COO
303 W. Foothill Blvd., Unit 13
Glendora, CA 91741
Phone: 626-872-3770
Email: glen.prior@eden-plus.org
4. Clarity AI Inc.
Attn: Thomas Lawrence
379 W Broadway 2nd Floor
New York, NY 10012
Phone: +33 671 4652 80
Email: thomas.lawrence@clarity.ai
5. Sandline Discovery LLC
Attn: Spencer Patton
105 N Virginia Ave., Suite 302
Falls Church, VA 22046
Phone: 301-938-1255
Email: finance@sandlineglobal.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About CTN Holdings
CTN Holdings Inc., formerly known as Aspiration Partners Inc., is a
climate finance company specializing in providing high-quality
carbon solutions to businesses worldwide. They connect companies
with effective decarbonization strategies and a wide range of
carbon removal projects, selling carbon credits sourced from a
diverse network of project developers. The company is famous for
providing carbon creditors of Microsoft Corp., Meta
Platforms Inc., and other big companies.
CTN Holdings Inc. and six of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
25-10613) on March 30, 2025. In the petition, the Debtors reported
estimated assets of $50 million to $100 million and up to $50,000
and estimated liabilities of $100 million to $500 million. The
petitions were signed by Miles Staglik as chief restructuring
officer.
The Debtors are represented by Whiteford, Taylor & Preston LLC. The
Debtors' claims and noticing agent is Kurtzman Carson Consultants,
LLC doing business as Verita Global.
D2 GOVERNMENT: Seeks Subchapter V Bankruptcy in North Carolina
--------------------------------------------------------------
On April 11, 2025, D2 Government Solutions Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of North Carolina. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 200 and 999 creditors. The petition states funds will be
available to unsecured creditors.
About D2 Government Solutions Inc.
D2 Government Solutions Inc., founded in 2010, is a
Service-Disabled Veteran-Owned Small Business (SDVOSB) that
provides a broad spectrum of professional services to U.S.
government agencies. The Company specializes in aviation-related
operations including base and flight operations, aircraft
maintenance, logistical support, aerial imaging, and range
services. In addition, D2 offers administrative and facility
support services such as mailroom operations, military transition
assistance, ID processing support, clerical staffing, and medical
administrative functions, reflecting its versatility in meeting
diverse federal contracting needs.
D2 Government Solutions Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-01322) on April
2, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Pamela W. McAfee handles the case.
The Debtor is represented by JM Cook, Esq. at J.M. COOK, P.A.
DATAVAULT AI: NYIAX Holds 5.1% Equity Stake
-------------------------------------------
NYIAX, Inc., disclosed in a Schedule 13D filed with the U.S.
Securities and Exchange Commission that as of March 16, 2025, it
beneficially owns 3,280,000 shares of Datavault AI Inc.'s Common
Stock, representing 5.1% of the 64,436,527 shares outstanding.
These shares were acquired through a share exchange agreement and a
license agreement with the issuer.
NYIAX, Inc. may be reached through:
Teresa Gallo, Chief Executive Officer
244 Fifth Avenue, New York, NY 10001
Tel: (917) 444-9259
About Datavault AI
Datavault AI Inc. (f/k/a WiSA Technologies, Inc.) --
www.wisatechnologies.com -- develops and markets spatial audio
wireless technology for smart devices and home entertainment
systems. The Company's WiSA Association collaborates with consumer
electronics companies, technology providers, retailers, and
industry partners to promote high-quality spatial audio
experiences. WiSA E is the Company's proprietary technology for
seamless integration across platforms and devices.
San Jose, California-based BPM LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company's recurring losses from
operations, a net capital deficiency, available cash, and cash used
in operations as factors raising substantial doubt about its
ability to continue as a going concern.
As of Sept. 30, 2024, Datavault AI had $8.02 million in total
assets, $3.72 million in total liabilities, and $4.30 million in
total stockholders' equity.
DEL RIO PARKS: Taps Mr. Landman LLC as Real Estate Broker
---------------------------------------------------------
Del Rio Parks, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Texas to employ Mr. Landman, LLC as
real estate broker.
The firm will market and sell the Debtor's real property located at
9670 US Hwy 90, Del Rio, Valverde 78840.
The firm's commission is 4 percent of the sales proceeds.
Jonathan Fisher, broker with Mr. Landman, LLC, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jonathan Fisher
MR. LANDMAN LLC
968 County Road 1000 N.
Champaign, IL 61822
Tel: (217) 202-0924
About Del Rio Parks
Del Rio Parks, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No.
25-50409) on March 3, 2025, listing under $1 million in both assets
and liabilities. The petition was signed by Scott Kramer,
president.
William R. Davis, Jr., Esq., at Langley & Banack, Inc. represents
the Debtor as counsel.
DEL VALLE IMPORT: Seeks to Hire Alla Kachan P.C. as Attorney
------------------------------------------------------------
Del Valle Import LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to hire Law Offices of Alla
Kachan P.C. as attorney.
The firm will provide these services:
(a) assist the Debtor in administering this Chapter 11 case;
(b) make such motions or take such action as may be
appropriate or necessary under the Bankruptcy Code;
(c) represent Debtor in prosecuting adversary proceedings to
collect assets of the estate and such other actions as it deems
appropriate;
(d) take such steps as may be necessary for the Debtor to
marshal and protect the estate's assets;
(e) negotiate with the Debtor's creditor in formulating a plan
of reorganization in this case;
(f) draft and prosecute the confirmation of the Debtor's plan
of reorganization in this case; and
(g) render such additional services as the Debtor may require
in this case.
The hourly rates of the firm's counsel and staff are as follows:
Attorney $475
Clerks/Paraprfessionals $250
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an initial retainer in the amount of $15,000.
Alla Kachan, Esq., an attorney at the firm, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Alla Kachan, Esq.
Law Offices of Alla Kachan, PC
2799 Coey Island Avenue, Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
About Del Valle Import LLC
Del Valle Import LLC is a limited liability company based in
Hollywood, Florida.
Del Valle Import LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10078) on January 6,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $500,000 and $1 million.
Honorable Bankruptcy Judge Peter D. Russin handles the case.
DEQSER LLC: April 21 Deadline Set for Panel Questionnaires
----------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy case of Deqser LLC.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://tinyurl.com/bdfcnpu6 and return by email it to
Jon.Lipshie, Esq. -- Jon.Lipshie@usdoj.gov -- at the Office of the
United States Trustee so that it is received no later than Monday,
April 21, 2025 at 4:00 p.m..
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Deqser LLC
Deqser LLC is a business entity associated with Cooperative
Laundry, a commercial laundry service based in Kearny, New Jersey.
Operating from a state-of-the-art facility, the Company supports
the hospitality industry with advanced, eco-efficient laundry
solutions.
Deqser LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del., Case No. 25-10687) on April 10, 2025. The
Debtor reported estimated assets and estimated liabilities of $1
million to $10 million.
The Hon. Craig T Goldblatt presides over the case.
The Debtor's general bankruptcy counsel is Mayerson & Hartheimer
PLLC and its local bankruptcy counsel is Gellert Seitz Busenkell &
Brown, LLC.
DR. POWER: Amends Several Secured Claims Pay; Files Amended Plan
----------------------------------------------------------------
Dr. Power Washers, Inc., submitted an Amended Plan of
Reorganization dated March 18, 2025.
The Plan provides for reorganization and restructuring of the
Debtor's financial obligations.
The Plan provides for a distribution to Creditors in accordance
with the terms of the Plan from the Debtor over the course of five
years from the Debtor's continued business operations.
Class 3 consists of the claim of TD Bank, N.A. The Debtor
surrenders the 2019 RAM Pro Master truck. The automatic stay has
already terminated on this collateral. T.D. Bank is permitted to
amend its proof of claim within 180 days for any deficiency to be
paid as a Class 5, non priority unsecured claim.
Class 3 consists of the claim of the Bank of America. The Claim of
Bank of America, N.A. ("BofA") is represented by a proof of claim
filed on October 8, 2024, listed as Claim 1 in the Court's Proof of
Claim Registry (herein after "BofA Proof of Claim") The BofA Proof
of Claim is in the amount of $27,266.02, and is secured by a lien
on a 2021 RAM 1500 vehicle#1C6RR6FG4MSS84960 (hereinafter the "BofA
Collateral").
For purposes of the Plan, the BofA Collateral shall be valued at
$20,863.00 (the "Secured Value"). The Secured Value of the BofA
Claim is the amount of $20,863.00 shall be repaid by Debtor to BofA
with interest at the rate of 8.25%, payable in 60 equal monthly
installments of $425.53 each, with the first such installment due
on the 1st calendar day of the month following the Effective Date,
with a like payment due on the 1st calndar day of each succeeding
month thereafter until paid in full.
Class 3 consists of the claim of First Citizen's Bank. The Debtor
surrenders the 2021 Chevrolet 4500XD The automatic stay terminates
upon confirmation and that First Citizen's is permitted to amend
its proof of claim within a timeframe of 180 days for the
deficiency balance to be paid as Class 5, non-priority unsecured
claim.
Class 3 consists of the claim of Stellantis Financial Services. The
Debtor will surrender Collateral.
Like in the prior iteration of the Plan, the Debtor will pay the
actual disposable income for sixty months following the Effective
Date to General Unsecured Creditors in Class 4 with allowed claims
in the amount set forth on the projections with this plan. Said
amounts will be paid quarterly starting quarterly with the full
calendar quarter after the Effective Date.
A full-text copy of the Amended Plan dated March 18, 2025 is
available at https://urlcurt.com/u?l=lr8TIn from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Gordon Mosley, Esq.
4411 Old Bullard Road, Suite 602
Tyler, TX 75703
Telephone: (903) 534-5396
Facsimile: (903) 581-4038
Email: gmosley@suddenlinkmail.com
About Dr. Power Washers
Dr. Power Washers, Inc., operates a pressure washing business that
specializes in the cleaning of restaurant kitchen hood exhaust
systems over a multi-state area that covers most of the southern
United States.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Texas Case No. 24-60627) on Oct. 14,
2024, listing under $1 million in both assets and liabilities.
Judge Joshua P. Searcy oversees the case.
Gordon Mosley, Esq. represents the Debtor as legal counsel.
DT BUILDERS: Updates Restructuring Plan Disclosures
---------------------------------------------------
DT Builders LLC filed with the U.S. Bankruptcy Court for the
Eastern District of Virginia a First Modification to Plan of
Reorganization for Small Business dated March 18, 2025.
The holders of claims in Classes 4 through 6 and 8 through 9 of the
Plan, shall each have an Allowed secured claim in the amount of
$4,000.00 under the Plan.
Furthermore, Tru Team and Brick Solution Inc. shall be added as
holders of claims to Class 8 of the Plan, and as such Tru Team,
Brick Solution Inc. and Construction Development Services Inc.
shall each be entitled to a $4,000.00 Allowed secured claim under
the Plan.
All provisions in Classes 4 through 6 and 8 through 9 of the Plan,
other than the now modified Allowed secured claim amount shall
remain the same as previously provided for in the Plan.
In order to remain consistent with the agreements reached with
other lienholders of the Real Property in Classes 4 through 6 and 8
through 9, and considering the potential appreciation in value of
the Real Property and/or the potential for a higher valuation of
the Real Property by another expert, to the extent allowed by the
Court, the Allowed secured claim of the holder of the Class 3
claim, Aspen Income Trust aka Wilmington Savings Fund Society, FSB
not in its individual capacity but solely as Owner Trustee of the
Aspen Income Trust, a Delaware statutory trust shall be as provided
for in the Plan, plus $4,000.00.
The following provisions are hereby added to Classes 11 and 12 of
the Plan:
* "Notwithstanding anything stated with respect to this class
to the contrary, to the extent the holder of this claim maintains a
lien against pre-Plan effective date causes of action, they shall
retain such lien interest. 100% of the net recovery, after
attorneys' fees and costs collected in connection with said lien,
shall be paid to Class 11 and 12 claimants in order of their lien
priority up to the amount(s) of their Allowed claims in this
case."; and
* "The Debtor shall make its Pre-Petition non-Excavator
tangible personal property available for pick up by the holders of
claims in Classes 11 and 12 of the Plan for up to one year
following the effective date of the Plan, so they may enforce their
state law rights to an Article 9 sale. The Debtor shall promptly
provide these assets to the first such claim holder that requests
access to the assets in writing to undersigned counsel. Should the
holder of a claim in Classes 11 or 12 seek possession of such
assets, the Debtor's obligations to pay for an Allowed secured
claim in connection with said assets will immediately cease."
Section (3) of Class 13 of the Plan is hereby deleted and replaced
with the following: "(3) 100% of the net recovery, after attorneys'
fees and costs of all pre-effective date causes of action
maintained by the Debtor, including but not limited to avoidance
actions under chapter 5 of the Bankruptcy Code, except that such
recovery shall first go to Class 11 and 12 claimants to the extent
the holder of those claims maintains a lien against pre-Plan
effective date causes of action."
A full-text copy of the First Modified Plan dated March 18, 2025 is
available at https://urlcurt.com/u?l=f4VnRE from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Jonathan A. Grasso, Esq.
Paul Sweeney, Esq.
YVS LAW, LLC
185 Admiral Cochrane Drive, Suite 130
Annapolis, MD 21401
Tel: (443) 569-0788
Fax: (410) 571-2798
E-mail: jgrasso@yvslaw.com
About DT Builders LLC
DT Builders LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 24-72517) on
Nov. 25, 2024. In the petition filed by Laushaun Robinson, as
co-managing member, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by Jonathan A. Grasso, Esq. at YVS LAW,
LLC.
E.W. SCRIPPS: Fitch Hikes LongTerm IDR to 'CCC-' on Closure of TSA
------------------------------------------------------------------
Fitch Ratings has downgraded The E.W. Scripps Company's Long-Term
Issuer Default Ratings (IDR) to 'RD' from 'CCC-'. Fitch has also
downgraded the issue-level ratings of the old senior secured term
loan Bs to 'C' with a Recovery Rating of 'RR2' from 'CCC+'/'RR2',
and subsequently has withdrawn them. In addition, Fitch has
assigned ratings of 'CCC+'/'RR1' to the new senior secured TLBs and
revolving credit facilities, affirmed the senior secured notes at
'CCC+' with a revised recovery rating of 'RR1' from 'RR2', and
affirmed the senior unsecured notes at 'C'/'RR6'. Fitch has also
removed from Rating Watch Negative the ratings of the secured
facilities subject to the DDE.
Fitch has subsequently upgraded Scripps' IDR to 'CCC-' following
the closure of its transaction support agreement (TSA) on April 10,
2025. This upgrade reflects a slightly improved debt maturity
profile, with the 2027 unsecured notes as the next major maturity
and elevated two-year average EBITDA leverage, which Fitch expects
to rise further in a non-political year, with a challenging
maturity schedule.
Fitch has withdrawn the ratings of the $585 million revolving
credit facility and the term loans due in 2026 and 2028. These
facilities are no longer considered by Fitch to be relevant to its
coverage because they have been terminated by the company as part
of its TSA debt restructuring transactions.
Key Rating Drivers
Temporary Relief; Post-TSA Capital Structure: The TSA refinancing
transactions defer refinancing risk until 2027 when the unsecured
notes are due. With term loan maturities extended to 2028 and 2029,
Fitch expects the company to focus on the monetization of the next
non-presidential political cycle to partially mitigate the
refinancing risk associated with the 2027 notes.
While this transaction provides a temporary reprieve, it does not
significantly address the issue of high debt levels. Consequently,
Fitch anticipates more near-term distressed debt exchange (DDE)
transactions as the company negotiates with holders of the 2027
unsecured notes to extend maturities.
Unsustainable Capital Structure; Diminished FCF: Fitch believes
Scripps' two-year average leverage will continue to push higher
over the next two years, which will only increase the pressure on
the company to come to favorable terms with multiple tranches of
existing bondholders and ultimately the same group of existing
lenders that have agreed to extend maturities into the 2028/2029
time frame. Fitch does not expect Scripps' core fundamental
business will grow rapidly enough over this time frame to meet
their upcoming maturity obligations.
Highest National Advertising Exposure: The national advertising
market has slowed over the past four years due to high interest
rates post-pandemic, limiting budgets and increasing competition
from digital media. Digital advertising provides better targeting
than traditional linear media, impacting Scripps' performance as
key sectors such as automotive, travel, retail, and financial
services have not fully returned to pre-pandemic levels. This has
undermined Scripps' national advertising performance compared to
peers with a more balanced national and local media presence.
Retransmission Revenue Growth Concerns: Fitch believes the
consistent growth of the high-margin retransmission business might
be peaking due to rising cable network costs and continuing erosion
of the subscriber base, as subscribers opt for alternative video
content distributors. This trend will increase Scripps' dependence
on core advertising, reflecting a more volatile operating profile.
Peer Analysis
Scripps' 'CCC-' rating reflects the company's limited liquidity,
accelerating secular challenges, declining profitability, and
sustained elevated leverage. Fitch also notes a heightened
refinancing risk over the medium term, as the company faces
significant debt maturities starting in 2027. The company's
profitability and financial flexibility have been challenged by
weaker-than-expected national advertising spending and increasingly
higher TV cable churn rates, partially offset by resilient local
advertising demand and a consistent but decelerating retransmission
business.
Key Assumptions
- Core advertising declines to high single digits in 2025, as a
result of a slower demand in both local and national during a
non-political year, modestly rises in 2026 to low single digits,
and then gradually increases to low to mid-single digits by the end
of 2028 capitalizing on the operating resilience of its local
advertising operations offset by ongoing secular pressures of the
retransmission and networks businesses;
- For 2026 and 2028, political revenues of around $270 million per
election year;
- Retransmission and carriage revenue generation faces significant
secular challenges primarily driven by increasingly higher TV cable
churn rates due to increasing popularity of streaming services,
reflecting a declining trend at a low-single-digit pace over the
next four years;
- Scripps Network revenue grows to low single digits during the
initial part of the projection but then gradually declines at a
low-single-digit pace by the end of the projected period, driven by
lower rates of renewal over the last three years of the rating
horizon;
- EBITDA margins fluctuate, reflecting even-year political
revenues, but improve due to a mix shift toward higher-margin
retransmission revenue and an improved cost structure resulting in
margins fluctuating between 15% and 20% throughout the rating
horizon.
- Capex intensity at 3.0% of total revenue annually.
Recovery Analysis
The recovery analysis assumes that Scripps would be considered a
going concern in bankruptcy and that the company would be
reorganized rather than liquidated. Fitch has assumed a 10%
administrative claim.
EBITDA
Scripps' going-concern EBITDA is based on pro forma LQ8A EBITDA.
Fitch assumes post-bankruptcy operating performance emergence under
stress due to consistent and increasingly higher declines in TV
cable subscribers, a weakened cable network position to effectively
manage the cost structure of the retransmission segment, impacting
revenue and operating profitability, and sluggish advertising
markets.
Fitch anticipates that traditional media, including television,
will once more be disproportionately affected by the pullback in
advertising and the rising competition from alternative media. This
results in a going-concern EBITDA of $400 million, representing
approximately a 30% reduction from the referenced LQ8A EBITDA.
Multiple
Fitch employs a 5.5x distressed enterprise value multiple
reflecting the value present in the company's Federal
Communications Commission licenses in small- and medium-sized U.S.
markets. This multiple is in line with the median telecom, media
and technology emergence enterprise value/EBITDA multiple of 5.5x.
The analysis also incorporates the following:
- Public trading enterprise value/EBITDA multiples typically of
8.0x to 11.0x;
- Recent M&A transaction multiples of 7.0x to 9.0x including
synergies (Gray Television acquired Raycom Media for $3.6 billion
in January 2019 including $80 million of anticipated synergies, or
7.8x; Apollo Global Management, LLC acquired Cox Media for $3.1
billion in February 2019 before synergies, or 9.5x; Nexstar Media
Group acquired Tribune Media Company in September 2019 for $7.2
billion, including the assumption of debt and $185 million of
outlined synergies, or 7.5x; Nexstar sold 22 stations to three
buyers as required under the terms of the Tribune acquisition for a
blended 7.5x);
- Scripps announced the acquisition of 15 television stations from
Cordillera Communications in October 2018 for $521 million, or
8.3x, including $8 million in outlined synergies and the
acquisition of eight stations from Nexstar in March 2019 for $580
million at an 8.1x multiple of average two-year EBITDA, excluding
the New York City CW affiliate, WPIX.
Fitch estimates an adjusted, distressed enterprise valuation of
roughly $2.2 billion, resulting in a 'B-'/'RR1' senior secured
Recovery Rating, and a 'C'/'RR6' unsecured debt Recovery Rating.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Another distressed debt exchange transaction as defined by
Fitch's "Corporate Rating Criteria" or the commencement of a
bankruptcy process;
- Further liquidity constraints.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Demonstrated execution of operational improvements resulting in
EBITDA margin expansion, leading to stronger free cash flow (FCF)
and an improved liquidity position.
- Successful refinancing of upcoming debt maturities, including the
$426 million of 5.875% unsecured notes maturing in 2027, while
avoiding a distressed debt exchange as defined by Fitch's
"Corporate Rating Criteria."
Liquidity and Debt Structure
As of Dec. 31, 2024, Scripps had $24 million in cash and cash
equivalents and approximately $578 million available to borrow
under its existing revolving credit facility, net of $7 million in
outstanding letters of credit, resulting in a total liquidity
position of $602 million. The fully drawn $70 million non-extended
revolving credit facility expires on Jan. 7, 2026, marking the
company's next debt maturity.
The new credit agreement governs the new revolving credit
facilities and senior secured term loan Bs. The credit agreement
contains a springing maturity if the 2027 unsecured notes are not
fully refinanced 180 days prior to maturity. At close of the
transaction, the company had $362 million outstanding under its
accounts receivable facility, $70 million outstanding under its
non-extended revolving facility and $107 million under its new $208
million revolving credit facility due in 2028.
Issuer Profile
Scripps is the fourth-largest TV broadcaster in the U.S. with 60
stations in 40+ markets, serving audiences through a diversified
portfolio of local and national media brands.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
The E.W. Scripps
Company LT IDR RD Downgrade CCC-
LT IDR CCC- Upgrade
senior secured LT CCC+ New Rating RR1
senior unsecured LT C Affirmed RR6 C
senior secured LT WD Withdrawn CCC+
senior secured LT C Downgrade RR2 CCC+
senior secured LT WD Withdrawn
senior secured LT CCC+ Affirmed RR1 CCC+
E.W. SCRIPPS: S&P Upgrades ICR to 'CCC+', Outlook Negative
----------------------------------------------------------
S&P Global Ratings raised our issuer credit rating on The E.W.
Scripps Co. to 'CCC+' from 'SD' (selective default).
S&P said, "We assigned 'B' issue-level ratings and '1' recovery
ratings to the company's new $70 million revolving credit facility
due in 2026, $208 million revolver due in 2027, $545.2 million
senior secured term loan B-2 maturing in 2028, and $340.2 million
secured term loan B-3 maturing in 2029.
"We raised the issue-level rating on the company's $523 million
senior secured notes due in 2029 to 'B' from 'CCC'. The recovery
rating remains '1'. We also raised the issue-level ratings on the
company's $426 million senior unsecured notes due in 2027 and $392
million senior unsecured notes due in 2031 to 'CCC' from 'C'. We
revised the recovery ratings to '5' from '6'.
"The negative outlook reflects ongoing secular pressures and
potential for a lower rating if we envision a default within 12
months. Still, we expect Scripps will have sufficient liquidity to
meet its operating and fixed-charge obligations over the next 12
months."
The E.W. Scripps Co. completed the exchange of its term loan B-2
and term loan B-3. However, it still has $426 million of senior
unsecured notes due in 2027 that it will need to refinance, with
limited ability to materially deleverage in advance. As a result,
S&P believes the company depends on favorable business, economic
and financial conditions to meet its financial obligations.
S&P said, "We view E.W. Scripps' capital structure as unsustainable
despite its recent debt exchanges. The recent transaction addressed
its 2026 term loan maturity, but the company still has $426 million
of senior unsecured notes due in 2027 (with annual maturities
thereafter through 2029 and an additional maturity in 2031). Terms
of the new debt include a springing maturity to 2027 if $50 million
of the 2027 notes remain outstanding, as well as limitations on
using cash or revolving credit facility availability to repay the
2027 notes. As part of the refinancing, the company drew on its
revolving credit facilities. It has a balance of $70 million due in
January 2026 and $107 million due in July 2027. As a result, we
believe the company depends on favorable business, economic, and
financial conditions to meet its financial obligations.
"We view it unlikely that Scripps can significantly deleverage
ahead of its upcoming debt maturities given secular pressures
facing linear television and its exposure to national advertising
in its networks business, which remains pressured as large
advertisers hold back spending given economic uncertainty. We
expect trailing-eight-quarters S&P Global Ratings-adjusted gross
leverage will be 6.5x at the end of 2025 compared to 6.9x at the
end of 2024. Scripps' cost restructurings enacted last year,
particularly in its networks business, and strong political revenue
of $343 million drove the improvement. However, we expect leverage
to return above 7x in 2026, given a drop in political revenue to
about $200 million (in a mid-term election) compared to $343
million in 2024; low-single-digit percent declines in core and
national advertising revenue; and 1%-2% decline in distribution
revenue. Although Scripps is renewing close to 20% of its
subscribers this year and 75% in 2026, we expect churn will mostly
offset price increases and that most of the benefit from the 2026
renewals will be felt in 2027.
"We view the company's preferred stock balance (which we include in
our calculation of adjusted debt), will continue to increase due to
the accruing of paid-in-kind dividends, further limiting its
ability to deleverage. Scripps has been pursuing asset sales to aid
in debt reduction and may continue to do so, although we view
proceeds are unlikely to significantly reduce its overall $2.8
billion debt burden.
"Debt trading levels increase the potential for a subpar debt
buyback. The company's 2027 senior unsecured notes are trading at
about 80 cents on the dollar. We believe the discount associated
with the value of the company's debt increases the potential for it
to pursue a subpar debt buyback. If Scripps were to buy back or
exchange its debt below par, we would likely view it as distressed
and tantamount to a default as we view there is realistic
possibility of a conventional default occurring over the near to
intermediate term given the company's overall debt burden, elevated
leverage, and challenged operating performance.
"The negative outlook reflects ongoing secular pressures facing
Scripps and the potential for a lower rating if we envision a
default within 12 months. Still, we expect Scripps will have
sufficient liquidity through balance sheet cash, expected cash
flow, and availability under its revolving facilities and accounts
receivable securitization facility to meet its operating and
fixed-charge obligations over the next 12 months."
S&P could lower its ratings if Scripps:
-- Pursues below-par debt repurchases, debt exchanges, or an
out-of-court restructuring that we deem tantamount to a default;
or
-- S&P believes there is realistic possibility of a conventional
default occurring in the next 12 months.
While unlikely over the next year, S&P could raise its ratings if
Scripps addresses its 2027 and 2028 debt maturities at affordable
interest rates such that:
-- It generates sustainable free operating cash flow (FOCF); and
-- Keeps EBITDA interest coverage comfortably above 1.5x.
ECTUL HOLDINGS: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Ectul Holdings, LLC, according to court dockets.
About Ectul Holdings
Ectul Holdings, LLC owns three retail spaces at 1300 Brickell Bay
Drive, Miami, Fla., including Unit CU-8 (Folio
01-4139-125-3820), Unit CU-9 (Folio 01-4139-125-3830), and Unit
CU-11 (Folio 01-4139-125-3850), with a total value of $14 million.
Additionally, the Debtor owns a separate property at 1331 Brickell
Bay Drive, #4607, Miami, Fla., valued at $5 million based on
comparable sales.
Ectul Holdings sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12521) on March 8,
2025. In its petition, the Debtor reported total assets of
$19,000,000 and total liabilities of $13,302,315.
Judge Laurel M. Isicoff oversees the case.
Mendez Law Offices, PLLC represents the Debtor as bankruptcy
counsel.
ELEMENTS UES: Court Extends Cash Collateral Access
--------------------------------------------------
Elements UES, LLC received another extension from the U.S.
Bankruptcy Court for the Southern District of New York to use cash
collateral.
The fourth interim order authorized the company to use cash
collateral in accordance with its budget pending entry of a further
interim or final order.
As protection for the use of their cash collateral, Fund-Ex
Solutions Group and the U.S. Small Business Administration were
granted replacement liens on the company's assets, including cash
collateral, to the same extent, validity, priority, and nature as
their pre-bankruptcy liens.
As additional protection, Fund-Ex and SBA will continue to receive
monthly payments of $6,500 and $455.25, respectively. The monthly
payments started last month.
A final hearing is scheduled for April 29.
About Elements UES
Elements UES, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10033) on January 12,
2025, listing between $1 million and $10 million in both assets
and
liabilities. Andrea Fornarola Hunsberger, president and chief
executive officer of Elements UES, signed the petition.
Judge Michael E. Wiles presides over the case.
Ralph E. Preite, Esq., at Cullen and Dykman, LLP represents the
Debtor as legal counsel.
Fund-Ex Solutions Group, as secured creditor, is represented by:
Michele K. Jaspan, Esq.
Chuhak & Tecson, P.C.
265 Sunrise Highway, Suite 50
Rockville Centre, NY 11570
Phone: (646) 532-4636 / (646) 532-4621
Fax: (516) 599-0889
mjaspan@chuhak.com
ENGLOBAL CORP: Delays Annual Report Due to Chapter 11 Filing
------------------------------------------------------------
Englobal Corp. filed a Notification of Late Filing on Form 12b-25
with the U.S. Securities and Exchange Commission, informing that it
was unable, without unreasonable effort or expense, to file its
Annual Report on Form 10-K for the year ended December 28, 2024 by
the March 28, 2025 due date or within the extended time period
permitted by Rule 12b-25 as a result of the Company and its direct
and indirect domestic subsidiaries filing voluntary petitions on
March 5, 2025 in the United States Bankruptcy Court for the
Southern District of Texas, Houston Division seeking relief under
Chapter 11 of Title 11 of the United States Code.
The Company is unable to pay the fees to its auditors and other
professionals that are required to complete the Annual Report due
to liquidity constraints. The Chapter 11 Cases have also diverted
significant management time from accounting matters and related
disclosures that need to be considered and evaluated in the
preparation of the Annual Report.
The outcome of the Chapter 11 Cases and the related sale process
will determine whether and when the Annual Report (and Quarterly
Reports on Form 10-Q or Annual Reports on Form 10-K for subsequent
periods) will be filed, which includes the possibility that the
Company will longer continue to operate as a publicly traded
entity. The Company intends to file Current Reports on Form 8-K
disclosing material events in the Chapter 11 Cases and other
information required under Form 8-K during the pendency of the
Chapter 11 Cases.
About Englobal Corp.
Englobal Corp. and affiliates provide innovative project solutions
with expertise in engineering, automation, and government services,
supported by a workforce of over 100 employees and contractors in
Houston and Tulsa. Their engineering group offers services such as
engineering, procurement, construction management, and fabricated
products for industries like refineries, petrochemicals, renewable
energy, and transportation. The automation group designs and
integrates modular systems, including control systems and data
monitoring, for both new and existing facilities. Additionally, the
government services group specializes in process control system
design, integration, and maintenance for U.S. government agencies
and commercial clients.
Englobal Corp. and affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case. No. 25-90083) on
March 5, 2025. In its petition, the Debtor reports estimated assets
and liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Alfredo R. Perez handles the case.
The Debtor is represented by:
Christopher Adams, Esq.
Ryan A. O'Connor, Esq.
John Thomas Oldham, Esq.
Madeline Schmidt, Esq.
OKIN ADAMS BARTLETT CURRY LLP
1113 Vine St., Suite 240
Houston, TX 77002
Tel: (713) 228-4100
Email: info@okinadams.com
roconnor@okinadams.com
joldham@okinadams.com
mschmidt@okinadams.com
EXELA TECHNOLOGIES: Reports 4.98% Stake in XBP Europe
-----------------------------------------------------
Exela Technologies, Inc., disclosed in a Schedule 13D filed with
the U.S. Securities and Exchange Commission that as of March 25,
2025, it beneficially owned 1,680,000 shares of XBP Europe
Holdings, Inc.'s Common Stock, representing 4.98% of the 35,400,153
shares of Common Stock outstanding as of that date. The shares,
referred to as the "MIPA Shares," were acquired pursuant to a
Membership Interest Purchase Agreement and are held of record by
Exela. Exela intends to transfer the MIPA Shares to its indirect
wholly owned subsidiary, GP 3XCV LLC. Shares previously reported as
beneficially owned through BTC International Holdings, Inc. are no
longer included due to an irrevocable proxy and related LLC
agreement amendment.
Exela Technologies, Inc. may be reached through:
Par Chadha
c/o Exela Technologies, Inc.
1237 7th St.
Santa Monica, CA, 90401
Tel:(310) 496-3248
-- and --
XBP Europe Holdings, Inc. at:
2701 East Grauwyler Road
Irving TX 75061
Tel: (844) 935-2832
A full-text copy of the SEC report is available at:
https://tinyurl.com/3rn5887c
About Exela Technologies
Headquartered in Irving, Texas, Exela Technologies, Inc. --
http://www.exelatech.com/-- is a business process automation (BPA)
company, leveraging a global footprint and proprietary technology
to provide digital transformation solutions enhancing quality,
productivity, and end-user experience.
Exela Technologies Inc. and several other units sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No.
25-90024) on March 3, 2025. In its petition, the Debtor reports
estimated assets between $500 million and $1 billion and
liabilities between $1 billion and $10 billion.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtor is represented by:
Timothy Alvin Davidson, II, Esq.
Andrews Kurth LLP
600 Travis, Ste 4200
Houston, TX 77002
Telephone: (713) 220-3810
Facsimile: (713) 220-4285
F21 OPCO: Seeks to Hire Ordinary Course Professionals
-----------------------------------------------------
F21 OpCo, LLC and its debtor affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to retain
non-bankruptcy professionals in the ordinary course of business.
The Debtors need ordinary course professionals to perform services
for matters unrelated to this Chapter 11 case.
The Debtors seek to pay OCPs 100 percent of the fees and expenses
incurred.
The Debtors do not believe that any of the OCPs have an interest
materially adverse to them, their estates, creditors, or other
parties in interest in connection with the matter upon which they
are to be engaged.
The OCPs include:
Blank Rome LLP
Legal Services -- Cyber and Privacy Claims
-- $20,000
BDO USA P.C.
Auditing Services
-- $25,000
K&L Gates LLP
Legal Services -- Employment and WARN
-- $30,000
KPMG LLP
Accounting Services
-- $15,000
Littler Mendelson PC
Legal Services -- Employment Litigation
-- $25,000
Neal Cohen Law
Legal Services -- Recalls
-- $10,000
Reed Smith LLP
Legal Services -- Employment Class Action
-- $45,000
Allen Matkins Leck Gamble
Mallory & Natsis LLP
Legal Services -- Products Counsel
-- $5,000
RSM US LLP
Tax Services
-- $15,000
Vazquez Botet & Asociados PSC
Accounting Services (Puerto Rico)
-- $5,000
About F21 OpCo
F21 OpCo, LLC is the operator of Forever 21 stores and licensee of
the Forever 21 brand in the United States.
F21 OpCo sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Case No. 25-10469) on March 16, 2025. In its
petition, the Debtor reports estimated assets between $100 million
and $500 million and estimated liabilities between $1 billion and
$10 billion.
The Debtor's proposed advisors include Paul, Weiss, Rifkind,
Wharton & Garrison LLP and Young Conaway Stargatt & Taylor, LLP as
legal counsel, BRG as financial advisor, RCS Real Estate Advisors
as real estate advisor, SSG Capital Advisors, LLC as investment
banker, and Reevemark as communications advisor.
About Forever 21 Inc.
Founded in 1984 by South Korean husband and wife team Do Won Chang
and Jin Sook Chang and headquartered in Los Angeles, Calif.,
Forever 21, Inc. -- http://www.forever21.com/-- is a fast fashion
retailer of women's, men's and kids clothing and accessories and is
known for offering the hottest, most current fashion trends at a
great value to consumers. Forever 21 delivers a curated assortment
of new merchandise brought in daily.
Forever 21, Inc. and seven of its U.S. subsidiaries each filed a
voluntary petition for relief under Chapter 11 of the United States
Bankruptcy Code (Bankr. D. Del. Lead Case No. 19-12122) on Sept.
29, 2019. According to the petition, Forever 21 has estimated
liabilities on a consolidated basis of between $1 billion and $10
billion against assets of the same range.
As of the bankruptcy filing, the Debtors operated 534 stores under
the Forever 21 brand in the U.S. and 15 stores under beauty and
wellness brand, Riley Rose.
The Debtors tapped Kirkland & Ellis LLP as legal advisor; Alvarez &
Marsal as restructuring advisor; and Lazard as investment banker;
and Pachulski Stang Ziehl & Jones LLP as local bankruptcy counsel.
Prime Clerk is the claims agent.
Andrew Vara, acting U.S. trustee for Region 3, appointed a
committee of unsecured creditors on Oct. 11, 2019. The committee is
represented by Kramer Levin Naftalis & Frankel LLP and Saul Ewing
Arnstein & Lehr LLP.
Counsel to the administrative agent under the Debtors' prepetition
revolving credit facility and the Debtors' DIP ABL financing
facility are Morgan, Lewis & Bockius LLP and Richards, Layton &
Finger, PA.
Counsel to the administrative agent under the Debtors' DIP term
loan facility is Schulte Roth & Zabel LLP.
* * *
In February 2020, the Debtor was purchased by a consortium that
includes Authentic Brands Group, Simon Property Group and
Brookfield Property Partners for $81.1 million. As part of the
deal, ABG and Simon will each own 37.5% of the fast-fashion
retailer, while Brookfield controls the remaining 25% of Forever
21's operating and intellectual property businesses.
FAIRFIELD, IL: S&P Lowers GO Debt Rating to 'BB', Outlook Stable
----------------------------------------------------------------
S&P Global Ratings lowered its rating three notches to 'BB' from
'BBB' on Fairfield, Ill.'s general obligation (GO) debt
outstanding.
S&P said, "The three-notch downgrade reflects our view of the
city's budgetary imbalance, which is largely driven by pension
underfunding, as well as our belief that the necessary sharp
expenditure increases could challenge the city, as we believe it
has practical limitations on raising additional revenue."
The outlook is stable.
S&P said, "We believe that the city has elevated risk management,
culture, and oversight risks, as evident in its history of pension
underfunding. Deferring pension contributions to later years
increases the probability of budgetary difficulty developing and
causing downward rating pressure. The city's transparency and
reporting issues are also elevated given its lack of data made
available to stakeholders for its poorly funded pension plans. We
believe this also impairs the city's ability to understand the
magnitude of the costs for these liabilities. Social capital risks
are also a weakness in our analysis to the extent that the sluggish
economic trends--reflected in population declines--could signal a
stronger likelihood of poor economic growth prospects and a weaker
long-term revenue outlook. Environmental factors are neutral within
our credit analysis.
"The stable outlook reflects our view that, with the support of its
enterprise funds, the city will be able to meet its financial
commitments over the two-year outlook horizon.
"We could lower the rating if we believe fixed-cost stresses are
likely to change materially from our baseline expectation, creating
a greater likelihood of outyear budgetary pressure, or if the
pension boards indicate that they may intercept funding, creating
liquidity pressure.
"We could raise the rating if the city demonstrates it is making
progress on its unfunded pension liabilities while maintaining
balanced operating results."
FAITH ELECTRIC: Seek to Tap Blackwood Law Firm as Legal Counsel
---------------------------------------------------------------
Faith Electric, Inc. seeks approval from the U.S. Bankruptcy Court
for the Western District of Oklahoma to hire Blackwood Law Firm,
PLLC to handle its Chapter 11 proceedings.
The firm will be paid at these hourly rates:
Attorneys $425
Legal Assistant/Law Clerks $100
In addition, the firm will seek reimbursement for expenses
incurred.
Amanda Blackwood, Esq., an attorney at Blackwood 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 through:
Amanda R. Blackwood, Esq.
Blackwood Law Firm, PLLC
512 NW 12th Street
Oklahoma City, OK 73103
Telephone: (405) 309-3600
Facsimile: (405) 378-4466
Email: amanda@blackwoodfirm.com
About Faith Electric Inc.
Faith Electric, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Okla. Case No. 25-10921) on March 31,
2025. In the petition signed by Austin Partida, chief executive
officer, the Debtor disclosed up to $10 million in both assets and
liabilities.
Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC, represents
the Debtor as bankruptcy counsel.
FAYETTE GROUP: Seeks to Hire McNamee Hosea as Bankruptcy Counsel
----------------------------------------------------------------
Fayette Group LLC seeks approval from the U.S. Bankruptcy Court for
the District of Maryland to hire McNamee Hosea, P.A. as its general
bankruptcy counsel.
The firm will render these services:
(a) provide the Debtor legal advice with respect to its powers
and duties;
(b) prepare any necessary legal papers, and appear on the
Debtor's behalf in proceedings instituted by or against it;
(c) assist the Debtor in the process of selling its property
and the confirmation of a plan and approval of a disclosure
statement;
(d) assist the Debtor with other legal matters;
(e) perform all of the legal services for the Debtor that may
be necessary or desirable.
The firm will be paid at these rates:
Janet M. Nesse $525 per hour
Justin P. Fasano $450 per hour
On March 28, 2025, McNamee Hosea was provided a $9,000 retainer, as
security for its fees and expenses in this case.
Justin Fasano, Esq., a principal at McNamee Hosea, 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:
Justin P. Fasano, Esq.
McNamee Hosea, P.A.
6404 Ivy Lane, Suite 820
Greenbelt, MD 20770
Tel: (301) 441-2420
Email: jfasano@mhlawyers.com
About Fayette Group LLC
Fayette Group LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Md. Case No. 25-12786)
on April 1, 2025, listing $500,001 to $1 million in both assets and
liabilities.
Justin Philip Fasano, Esq. at Mcnamee Hosea, P.A. represents the
Debtor as counsel.
FIRST CLASS MOVING: Seeks Chapter 11 Bankruptcy in Florida
----------------------------------------------------------
On April 11, 2025, First Class Moving Systems Inc. filed Chapter
11 protection in the U.S. Bankruptcy Court for the Middle District
of Florida. According to court filing, the Debtor reports between
$1 million and $10 million in debt owed to 200 and 999 creditors.
The petition states funds will be available to unsecured
creditors.
About First Class Moving Systems Inc.
First Class Moving Systems Inc. is a professional moving company
offering residential and commercial moving services, as well as
packing, logistics, and storage solutions. The Company has
locations in Tampa, Miami/Fort Lauderdale, Gulfport, MS, Orlando,
FL, and Bound Brook, NJ.
First Class Moving Systems Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Lead Case No. 25-02243)
on April 11, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Roberta A. Colton handles the case.
The Debtor is represented by Scott A. Stichter, Esq. and Amy Denton
Mayer, Esq. at STICHTER RIEDEL BLAIN & POSTLER, P.A.
FOOTBALL NATION: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------------
The U.S. Trustee for Region 1 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Football
Nation Holdings, LLC.
The committee members are:
1. Gregg Flower
332 West Neck Road
Lloyd Harbor, NY 11743
Email: WestNeck@me.com
2. Joseph Natoli, DMD
19 Beach Cove
Brigantine, NJ 08203
Email: NatoliDental@yahoo.com
3. Marc Zemel
2301 Collins Avenue, PH #20
Miami Beach, FL 33139
Email: MZemel@MrBarBQ.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Football Nation Holdings
Football Nation Holdings LLC, doing business as Command Media LLC,
provides cutting-edge app and web development specializing in the
application of advanced AI, enhanced live streaming, and real-time
gamification. It is based in Newton Center, Mass.
Football Nation Holdings filed Chapter 11 petition (Bankr. D. Mass.
Case No. 24-12453) on December 5, 2024, listing up to $50,000 in
assets and between $1 million and $10 million in liabilities. Laura
Peck, chief operating officer, signed the petition.
Judge Janet E. Bostwick handles the case.
The Debtor is represented by:
D. Ethan Jeffery, Esq.
Murphy & King, Professional Corporation
28 State Street, Suite 3101
Boston, MA 02109
Tel: (617) 423-0400
ejeffery@murphyking.com
FOUR HATS: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Four Hats Inc
540 Markamen Court
Fayetteville, GA 30214
Business Description: Four Hats Inc. is a veteran-owned company
that specializes in providing traffic
control services and equipment. Established
in 2015, the Company operates in Georgia and
Texas, serving industries such as
construction, utilities, film and special
events, and emergency response. Four Hats
Inc. is committed to ensuring safety and
efficiency through certified professionals
handling traffic management solutions like
flagging, lane shifts, utility crossings,
and detours.
Chapter 11 Petition Date: April 15, 2025
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 25-10554
Debtor's Counsel: Leslie Pineyro, Esq.
JONES & WALDEN LLC
699 Piedmont Avenue NE
Atlanta, GA 30308
Tel: 404-564-9300
E-mail: info@joneswalden.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by David Garten as sole shareholder and
president.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/A2DC7MY/Four_Hats_Inc__ganbke-25-10554__0001.0.pdf?mcid=tGE4TAMA
FRANCHISE GROUP: To Sell Vitamin Shoppe Retail Biz for $193.5MM
---------------------------------------------------------------
Steven Church of Bloomberg News reports that Franchise Group Inc.,
currently in bankruptcy, has agreed to sell its health supplement
retailer, the Vitamin Shoppe, for $193.5 million.
Court filings identify the buyer as TVS Buyer, with equity backing
from affiliates of Los Angeles-based private equity firm Kingswood
Capital Management.
The Vitamin Shoppe, which operates roughly 700 stores, is one of
FRG’s most valuable assets. Still, the sale will not generate
enough proceeds to cover the nearly $2 billion owed to creditors,
according to Bloomberg News.
The deal remains subject to approval by U.S. Bankruptcy Judge
Laurie Silverstein, who is overseeing the case, the report states.
About Franchise Group Inc.
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy's Home Furnishings and Sylvan Learning
Systems, Inc.
Franchise Group, Inc. and its affiliates filed their voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D. Del. Lead Case No. 24-12480) on Nov. 3, 2024, listing
$1,000,000,001 to $10 billion in both assets and liabilities. The
petitions were signed by David Orlofsky as chief restructuring
officer.
Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor,
LLP are serving as legal counsel, AlixPartners is serving as
financial advisor and Chief Restructuring Officer, and Ducera
Partners is serving as investment banker to the Company. Paul
Hastings LLP is serving as legal counsel and Lazard is serving as
investment banker to the first lien ad hoc group.
FRANCO HAULING: Gets OK to Use Cash Collateral Until May 9
----------------------------------------------------------
Franco Hauling, LLC received another extension from the U.S.
Bankruptcy Court for the Northern District of Illinois to use cash
collateral.
The second order extended the company's authority to use cash
collateral from April 4 to May 9 to pay expenses in accordance with
its budget and the terns of the initial order dated March 12.
The budget projects total monthly operational expenses of
$18,710.99.
The next hearing is scheduled for May 7.
About Franco Hauling LLC
Franco Hauling, LLC is a truck hauling Company that haul materials
and debris from work sites to designates locations. Franco is a
veteran owned female controlled company. Franco was formerly a
Union Contractor, but the contract was terminated by the Suburban
Teamsters. Franco is currently operating a non-union company.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-03520) on March 7,
2025. In the petition signed by July Franco, manager, the Debtor
disclosed up to $100,000 in assets and up to $1million in
liabilities.
Judge Janet S. Baer oversees the case.
O. Allan Fridman, Esq., at Law Office of Allan Fridman, represents
the Debtor as legal counsel.
FTAI INFRASTRUCTURE: Moody's Cuts CFR to B3, Outlook Negative
-------------------------------------------------------------
Moody's Ratings downgraded FTAI Infrastructure Inc.'s (FIP)
corporate family rating to B3 from B2, probability of default
rating to B3-PD from B2-PD and senior secured notes rating to B3
from B2. Moody's also assigned an SGL-4 Speculative Grade Liquidity
rating, indicating weak liquidity. The rating outlook remains
negative.
"The downgrade reflects FIP's increased consolidated debt and
elevated near-term execution and refinancing risks," said Sajjad
Alam, a Moody's Ratings Vice President. "While the company has
reasonable revenue visibility through existing contracts, boosting
earnings and lowering leverage to sustainable levels will require
time amid an increasingly uncertain economic and capital markets
environment."
RATINGS RATIONALE
The B3 CFR reflects FIP's very high financial leverage, weak
interest coverage, significant debt maturities through 2026, and
inconsistent operating track record. The company has a complex
capital structure, including over $2.1 billion of non-recourse debt
at its various operating subsidiaries, and a substantial amount of
preferred obligations that have high coupons and are growing
because of suspended cash dividends (currently being paid in-kind).
The Series A preferred equity in particular have a 14% cash
dividend or effective 18% PIK dividend, and if the company does not
pay the accumulated and outstanding dividends in cash by January 1,
2026, it will constitute an event of non-compliance allowing
preferred stockholders to elect a majority of Board members. While
Moody's expects earnings and cash flow to improve gradually through
2026, management needs to execute its business and refinancing
plans successfully to boost earnings, reduce leverage, improve
maturity profile and enhance overall financial flexibility.
The CFR is supported by FIP's strategically located and diversified
assets providing critical infrastructure support, good revenue
visibility backed by long-term contracts at Transtar, Jefferson,
and Long Ridge, mostly high-quality and sticky customer base, and
long lived assets that require low maintenance capital.
FIP's secured notes are rated B3, the same as the CFR, given the
notes represent the only class of debt at FIP. The notes are
secured by Transtar's assets and FIP's equity interests in other
subsidiaries, although those other subsidiary's assets are
encumbered by substantial amounts of non-recourse debt.
The company has weak consolidated liquidity, consistent with the
SGL-4 rating and primarily reflecting its significant debt
maturities through 2026. The company will need to refinance a
substantial amount of debt by the end of 2026 at the Jefferson and
Repauno subsidiaries. At the holding company level, FIP has full
access to Transtar's free cash flow, which is currently
unencumbered and requires minimal capital expenditure and provides
sufficient cash to service FIP's debt. FIP also has access to 100%
of Long Ridge's free cash flow and 80% of Jefferson's free cash
flow. However, most of FIP's cash flow will come from Transtar with
Long Ridge contributing a small amount in 2025, which will grow in
2026. The company's other subsidiaries are unlikely to provide any
meaningful cash to the parent company in the near future given
their own spending and debt service requirements. FIP's $600
million secured notes mature in June 2027.
The negative outlook reflects elevated near term execution and
refinancing risks.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The CFR could be upgraded if the company can grow its EBITDA and
assets according to its stated plans, improve maturity profile, and
achieve strong utilization of its assets. An upgrade could be
considered if FIP can sustain the proportionately consolidated
debt/EBITDA ratio below 7x and EBITDA/Interest above 1.5x. The
ratings could be downgraded if financial leverage increases from
current levels or EBITDA/Interest declines below 1x. Refinancing
challenges and weakening of liquidity could also trigger a
downgrade.
FTAI Infrastructure Inc. is a publicly traded diversified
infrastructure company with exposures to the energy, power and
railroad transportation industries.
The principal methodology used in these ratings was Midstream
Energy published in February 2022.
GFL ENVIRONMENTAL: Moody's Cuts Rating on $1BB Unsec. Notes to Ba3
------------------------------------------------------------------
Moody's Ratings has downgraded GFL Environmental Inc.'s (GFL) $1
billion senior unsecured (previously senior secured) notes due 2031
rating to Ba3 from Baa3. Moody's have also affirmed the Ba2
corporate family rating, Ba2-PD probability of default rating, Baa3
rating on its $750 million senior secured notes due 2028 and Ba3
ratings on its existing senior unsecured notes. Furthermore,
Moody's have affirmed GFL Solid Waste Southeast LLC's Ba3 senior
unsecured funding obligation and backed senior unsecured revenue
bond (issued by Florida Development Finance Corporation) ratings,
and Wrangler Holdco Corp.'s Ba3 backed senior unsecured notes
rating. GFL's speculative grade liquidity rating remains unchanged
at SGL-2. The outlook for GFL, Wrangler Holdco Corp., and GFL Solid
Waste Southeast LLC is stable.
"The downgrade of the 2031 senior unsecured (previously senior
secured) notes is a result of its collateral being permanently
removed and the notes becoming unsecured." said Dion Bate, Moody's
Ratings Analyst.
RATINGS RATIONALE
The provisions in the 2031 debt agreement include a trigger that
permanently releases the collateral once the 2031 notes are rated
investment-grade by two credit rating agencies. With the 2031 notes
meeting this provision, the collateral has been released and will
not return, resulting in these notes becoming unsecured and ranking
parri passu with GFL's other unsecured debt.
GFL's rating benefits from: 1) the company's growing and
diversified business; 2) high recurring revenue supported by long
term contracts and stricter regulation; 3) its good market position
in the stable Canadian and US nonhazardous waste industry; and 4)
growing EBITDA margins that benefits from acquisition cost
synergies and its vertically integrated business model.
However, GFL's rating is constrained by: 1) its history of
aggressive debt financed acquisition growth which has tempered
deleveraging; 2) the short time frame between acquisitions which
increases the potential for integration risks and adds analytical
complexity; and 3) private equity and founder ownership, which may
hinder deleveraging.
GFL has good liquidity (SGL-2). The sources total around C$2.0
billion with no mandatory debt payments over the next 12 months.
Post the partial disposal of its Environmental Services business,
GFL has proforma cash of around C$380 million (after C$3.7 billion
of debt repaid and C$2.25 billion of share buy backs), full
availability under its C$1.3 billion revolving credit facilities
(expiring September 2026) and Moody's expectations of around C$300
million of free cash flow in 2025. GFL's revolver is subject to a
net leverage and an interest coverage covenant, which Moody's
expects will have sufficient buffer over the next four quarters.
GFL will have no debt maturities until 2028 with its revolver
expiring in September 2026. Moody's anticipates GFL will be able to
extend its revolver before it becomes current given its track
record of addressing debt maturities well ahead of time. While the
revolver and secured notes are secured by all assets of GFL, the
company can still sell assets for additional liquidity.
The Baa3 rating on the 2028 senior secured notes are two notches
above the CFR due to the senior secured debt's first priority
access to substantially all of the company's assets as well as loss
absorption cushion provided by the higher proportion of senior
unsecured notes. The Ba3 rating on the senior unsecured notes is
one notch below the CFR due to the senior unsecured notes' junior
position in the debt capital structure.
The stable outlook reflects Moody's expectations that GFL will
operate within their newly stated capital allocation policy and
with lower financial leverage such that adjusted debt/EBITDA will
trend below 4x over the next 12-18 months. It also incorporates
Moody's expectations of favorable pricing and stable volumes,
growing free cash flow and good liquidity over the next 12 to 18
months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if GFL continues to deliver solid
operating performance with EBITDA margins sustained above 25% and
demonstrates a commitment to maintain a more conservative and
predictable financial policy, such that adjusted Debt/EBITDA is
sustained below 3.5x. Moody's would also expect GFL to maintain a
strong free cash flow position such that it is able to fund its
inorganic growth strategy and sustain a good liquidity profile.
The ratings could be downgraded if liquidity weakens, including
excess reliance on the revolver, if there is a material and
sustained decline in operating margin due to challenges integrating
acquisitions or if adjusted debt/EBITDA rises towards 4.5x.
The principal methodology used in these ratings was Environmental
Services and Waste Management published in August 2024.
GFL Environmental Inc., headquartered in Toronto, provides solid
waste collection, recycling and disposal solutions to municipal,
industrial and commercial customers in Canada and the US.
GFL ENVIRONMENTAL: S&P Raises Senior Unsecured Notes Rating to 'BB'
-------------------------------------------------------------------
S&P Global Ratings raised its issue-level rating on Toronto-based
environmental service company GFL Environmental Inc.'s senior
unsecured notes to 'BB' from 'BB-' and revised its recovery rating
on the notes to '4' (rounded estimate: 35%) from '5' (rounded
estimate: 10%). At the same time, S&P lowered its issue-level
rating on GFL's 6.75% notes due 2031 to 'BB' from 'BBB-' and
revised the recovery rating to '4' (rounded estimate: 35%) from '1'
to equalize our ratings on the notes with our ratings on the
unsecured notes.
These actions follow GFL's recent announcement that the collateral
backing the US$1 billion notes due 2031 has been released. S&P
said, "We now assume the 2031 notes will rank pari passu with the
company's other unsecured notes, thereby reducing the proportion of
debt that ranks ahead of the unsecured claims. Therefore, we now
estimate a higher recovery for the unsecured claims in our
hypothetical default scenario."
Issue Ratings--Recovery Analysis
Key analytical factors
-- The '1' recovery rating on GFL's senior secured debt indicates
S&P's expectation for very high (90%-100%; rounded estimate: 95%)
recovery in the event of a default, which corresponds to a 'BBB-'
issue-level rating (two notches above the issuer credit rating).
-- The '4' recovery rating on the company's senior unsecured debt
indicates S&P's expectation for average (30%-50%; rounded estimate:
35%) recovery in the event of a default, which corresponds to a
'BB' issue-level rating (no notching from the issuer credit
rating).
-- S&P's simulated default scenario contemplates a default in 2030
stemming from the loss of customer contracts, heightened
competition, and margin erosion caused by an unexpected increase in
costs related to acquisition integration issues.
-- In this scenario, GFL is unable to service its financial
obligations, prompting the need for it to restructure as a going
concern.
-- S&P's recovery analysis assumes a gross reorganization value
for the company of about C$5.1 billion, which reflects its
emergence EBITDA estimate of about C$845 million and a 6x
multiple.
Simulated default assumptions
-- Simulated year of default: 2030
-- Revolver to be 85% drawn at default
-- Emergence EBITDA: About C$845 million
-- Multiple: 6x
-- Gross recovery value: About C$5.1 billion
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): C$4.8
billion
-- Total value available to secured first-lien debt claims: C$4.8
billion
-- Secured first-lien debt claims: C$2.8 billion
--Recovery expectations: 90%-100% (rounded estimate: 95%)
-- Total value available to unsecured claims: C$2.0 billion
-- Senior unsecured debt and pari-passu claims: C$5.6 billion
--Recovery expectations: 30%-50% (rounded estimate: 35%)
Note: All debt amounts include six months of prepetition interest.
GOL LINHAS: Extends Exit Funding Deadline Due to Trump Tariffs
--------------------------------------------------------------
Ney Hayashi of Bloomberg News reports that Gol Linhas has extended
the deadline for binding proposals on its $1.9 billion exit
financing to May 15, 2025, moving it from the original date of
April 19, according to a regulatory filing.
The extension, agreed upon with Castlelake and Elliott Management,
is intended to give markets time to respond to the recent tariffs
announced by U.S. President Donald Trump, according to Bloomberg
News.
CEO Celso Ferrer stated that Gol aims to emerge from Chapter 11 in
April 2025, the report states.
About Gol GOLL4.SA
GOL Linhas Aereas Inteligentes S.A. provides scheduled and
non-scheduled air transportation services for passengers and cargo;
and maintenance services for aircraft and components in Brazil and
internationally. The company offers Smiles, a frequent-flyer
program to approximately 20.5 million members, allowing clients to
accumulate and redeem miles. It operates a fleet of 146 Boeing 737
aircraft with 674 daily flights. The company was founded in 2000
and is headquartered in Sao Paulo, Brazil.
GOL Linhas Aereas Inteligentes S.A. and its affiliates and its
subsidiaries voluntarily filed for Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024.
GOL Linhas estimated $1 billion to $10 billion in assets as of the
bankruptcy filing.
The Debtors tapped Milbank Llp as counsel, Seabury Securities Llc
as restructuring advisor, financial advisor and investment banker,
Alixpartners, LLP, as financial advisor, and HUGHES Hubbard & Reed
LLP as aviation related counsel. Kroll Restructuring Administration
LLC is the claims agent.
HALL LABS: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------
Gregory Garvin, Acting U.S. Trustee for Region 19, appointed an
official committee to represent unsecured creditors in the Chapter
11 case of Hall Labs, LLC.
The committee members are:
1. Kelle Fergison
on behalf of the Aaron Fergison, Deceased
c/o Steve Baron and Ann Harper
Baron & Budd, P.C.
Counsel:
Steve Baron and Ann Harper
Baron & Budd, P.C.
3102 Oak Lawn Ave, Ste 1100
Dallas, TX 75219
Phone: 214-521-3605
sbaron@baronbudd.com;
aharper@baronbudd.com
2. Christopher G. Connelly Trust, June 19, 2008
Christopher Connelly, Trustee
2718 E. Rasmussen Dr
St. George, UT 84790
Phone: 801-750-3857
Chrisc510@outlook.com
3. Evans Development, LLC
Jamie Evans, Manager
1220 N. Main Street, Unit 1
Springville, UT 84663
Phone: 801-377-9999
Jamie@evans-dev.com
Counsel:
Rich Willie
WW Partners, LLC
8941 S. 700 E, Ste 202
Sandy, UT 84070
Phone: 208-241-9691
Rich@wwpartners.co
4. Purdie Profit Sharing Plan, LLC
Debbie Purdie, Manager
2956 N. 63rd St.
Mesa, AZ 85215
Phone: 480-528-8075
Dpurdie8489@gmail.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Hall Labs
Based in Provo, Utah, Hall Labs, LLC focuses on developing and
monetizing intellectual property across various industries by
bringing together scientists and engineers to solve complex
problems. After prototyping and market validation, Hall Labs
licenses its technologies to newly-formed entities, which then
commercialize and further develop the innovations. The company
generates revenue through the sale of technologies, patents, and
company interests, while its portfolio companies become
self-sustaining and progress toward an exit.
Hall Labs sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Utah Case No. 25-21038) on March 5, 2025. In its
petition, the Debtor reported estimated assets between $100 million
and $500 million and estimated liabilities between $50 million and
$100 million.
Judge Joel T. Marker handles the case.
Andres Diaz, Esq., at Diaz & Larsen, serves as the Debtor's legal
counsel.
HERITAGE HOTELS: Taps Spire Consulting, J.S. Held as Consultants
----------------------------------------------------------------
Heritage Hotels Rockport, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ Kate
Hull Romero of Spire Consulting Group and Michael Eddings of J.S.
Held L.L.C. as professional consultants.
The consultants, as experts, will testify on behalf of the Debtor
in Heritage Hotels Rockport LLC v. Jon K. Takata Corporation D/B/A/
Restoration Management Company, Adversary Proceeding NO. 24-02007
pending in the above captioned bankruptcy case.
The Debtor proposes to engage J.S. Held/Eddings for the hourly rate
of $380.
The consultants represent no interest adverse to the estate in the
matters upon which they are to be engaged and are disinterested
persons within the definition of 11 U.S.C. Sec. 101(14), according
to court filings.
The consultants can be reached at:
Kate Hull Romero
Spire Consulting Group
Downtown-RiverSouth
401 S 1st Street, Suite 775
Austin, TX 78704
- and -
Michael Eddings
J.S. Held L.L.C.
333 Clay St, Suite 3960
Houston, TX 77002
Tel: (832) 789-8790
Email: meddings@jsheld.com
About Heritage Hotels Rockport
Heritage Hotels is part of the traveler accommodation industry.
Heritage Hotels Rockport LLC in Marble Falls, TX, filed its
voluntary petition for Chapter 11 protection (Bankr. S.D. Tex. Case
No. 24-20201) on July 24, 2024, listing as much as $10 million to
$50 million in both assets and liabilities. James R. Reese,
manager, signed the petition.
The Debtor tapped the Law Office of Vincent Slusher as bankruptcy
counsel and Weinstein Radcliff Pipkin LLC as special litigation
counsel.
HOOTERS OF AMERICA: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------------
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Hooters of
America, LLC.
The committee members are:
1. Steven Smith
Chief Executive Officer
Firehouse Ltd
14860 Landmark Blvd. Ste 247
Dallas, TX 75254
(972) 692-0911
steves@firehouse.agency
2. Adam D. Genn
Vice President
MCB HP Baltimore LLC
2002 Clipper Park Road, Ste 105
Baltimore, MD 21211
(443) 202-8900
agenn@mcbrealestate.com
3. Susan Fabenbloom
Manager
Millenium Properties, LLC
19528 Ventura Bl. Ste. 282
Tarzana, CA 91356
(310) 738-6555
susan.farbenbloom@scbglobal.net
4. Matthew Neibart
Senior Finance Manager
PepsiCo Sales, Inc.
1100 Reynolds Blvd.
Winston Salem, NC 27105
(908) 752-7467
matthew.neibart@pepsico.com
5. Eduardo Montano
(469) 588-0870
0415montano@gmail.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Hooters of America
Hooters of America, LLC is the owner and operator of a restaurant
chain with hundreds of locations in the United States. Founded in
1983, Hooters of America and its affiliates 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.
Hooters of America and its affiliates filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Texas
Lead Case No. 25-80078) on March 31, 2025.
Judge Scott W. Everett oversees the cases.
The Debtors co-bankruptcy counsel are Holland N. O'Neil, Esq.,
Stephen A. Jones, Esq., and Zachary C. Zahn, Esq., at, 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, Ill.
The Debtors' tapped Foley & Lardner, LLP as co-counsel with Ropes &
Gray; Solic Capital, LLC as investment banker; and Accordion
Partners, LLC as financial advisor. Kroll Restructuring
Administration, LLC is the Debtors' notice, claims, solicitation
and balloting agent.
HOSPITALITY AT YORK: Seeks Cash Collateral Access
--------------------------------------------------
Hospitality at York, LLC asked the U.S. Bankruptcy Court for the
Middle District of Pennsylvania for authority to use cash
collateral.
The Debtor needs to use cash collateral to pay ongoing expenses,
maintain insurance coverage, preserve its assets, and continue
providing lodging services.
First Commonwealth Bank holds a first lien on all of the Debtor's
assets while the U.S. Small Business Administration holds a second
lien. Both creditors have valid and perfected security interests in
the Debtor's assets, which include the real estate, business
income, and other operational assets.
First Commonwealth Bank is owed approximately $3.16 million while
SBA is owed around $1.21 million. The hotel property is appraised
at $7.48 million, leaving approximately $3.11 million in equity
after deducting both liens.
As adequate protection, the Debtor proposed to grant replacement
liens or other protective measures to the lenders as permitted
under 11 U.S.C. Section 361.
The Debtor believes that the business will return to profitability
within a few months of confirming a Chapter 11 reorganization plan.
A copy of the motion is available at https://urlcurt.com/u?l=UMdOrI
from PacerMonitor.com.
About Hospitality at York
Hospitality at York, LLC operates the Holiday Inn Express, a hotel
located at 18 Cinema Drive, York, Pa.
Hospitality at York sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Pa. Case No. 25-00938) on April 7,
2025. In its petition, the Debtor reported total assets of
$7,569,000 and total liabilities of $6,744,840.
Judge Henry W. Van Eck handles the case.
The Debtor is represented by Lawrence V. Young, Esq. at CGA Law
Firm.
IDEANOMICS INC: Seeks to Extend Plan Exclusivity to August 1
------------------------------------------------------------
Ideanomics, Inc. and its affiliates asked the U.S. Bankruptcy Court
for the District of Delaware to extend their exclusivity periods to
file a plan of reorganization and obtain acceptance thereof to
August 1 and September 30, 2025, respectively.
Since the Petition Date, the Debtors have made substantial and
meaningful progress under Chapter 11. To date, the Debtors' efforts
have been concentrated on consummating sales of the Debtors'
assets. The Debtors were successful in completing the sale of the
Debtors' assets. Now, the Debtors are focusing their efforts on
drafting and filing a value maximizing plan of liquidation.
Therefore, if achieved, a chapter 11 plan would be the product of
the Debtors' extensive efforts, and cause exists to extend the
Exclusive Periods to allow the Debtors to negotiate and formulate
such plan.
The Debtors explain that they and their professionals have expended
significant effort in negotiating and consummating the sales of the
Debtors' assets, workstreams that were the primary focus of the
first ninety days of these Chapter 11 Cases. Accomplishing these
tasks and addressing the concerns of the Debtors' creditors, among
other things, required the full attention of the Debtors' employees
and advisors. Further, the Debtors have been required to devote a
significant amount of time, emergency and resources to their
transition into chapter 11 more generally.
The Debtors claim that they have been paying their undisputed
post-petition amounts owed in the ordinary course of business or as
otherwise provided by the Court Order. This factor therefore weighs
in favor of allowing the Debtors to extend the Exclusive Periods.
The Debtors assert that the expiration of their exclusive right to
file a Chapter 11 plan at such a critical time would jeopardize the
forward momentum of these Chapter 11 Cases and disrupt the
substantial progress made to date. Accordingly, this extension
request is reasonable and consistent with the efficient prosecution
of these Chapter 11 Cases because it will provide the Debtors with
additional time to draft and file a plan.
The Debtors further assert that the Exclusivity Periods will
benefit creditors by avoiding the drain on estate assets attendant
to a competing Chapter 11 plan. The Debtors' requested extension of
the Exclusivity Periods is intended to allow the Debtors to
continue to work cooperatively with their key constituents toward
the goal of confirming and implementing a consensual and
value-maximizing plan of liquidation in the most cost-efficient
manner possible.
Co-Counsel to the Debtors:
Palacio, Esq.
Gregory A. Taylor, Esq.
ASHBY & GEDDES, P.A.
500 Delaware Avenue, 8th Floor
P.O. Box 1150
Wilmington, DE 19801
Tel: (302) 654-1888
Fax: (302) 654-2067
Email: RPalacio@ashbygeddes.com
GTaylor@ashbygeddes.com
John A. Simon, Esq.
Jake W. Gordon, Esq.
FOLEY & LARDNER LLP
500 Woodward Ave., Suite 2700
Detroit, MI 48226-3489
Tel: (313) 234-7100
Fax: (313) 234-2800
Email: jsimon@foley.com
Jake.gordon@foley.com
- and -
Timothy C. Mohan, Esq.
1400 16th Street, Suite 200
Denver, CO 80202
Tel: (720) 437-2000
Fax: (720) 437-2200
Email: tmohan@foley.com
About Ideanomics Inc.
New York, N.Y.-based Ideanomics, Inc. is a global electric vehicle
company that is focused on driving the adoption of electric
commercial vehicles and associated sustainable energy consumption.
It is made up of 5 subsidiaries including: VIA Motors, Solectrac,
Treeletrik, Wave, and US Hybrid.
Ideanomics Inc. and seven of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-12728) on December 4, 2024. In its petition, the Debtor
reports assets between $50 million and $100 million and liabilities
ranging from $100 million to $500 million.
Foley & Lardner LLP serves as the Debtors' general bankruptcy
counsel and Ashby & Geddes, P.A. acts as the Debtors' Delaware
co-counsel. The Debtors tapped Epiq Corporate Restructuring as
noticing and claims agent. Riveron Management Services, LLC is the
Debtors' CRO and financial advisor, and SSG Advisors, LLC, is the
Debtors' investment banker and financial adviser.
IMERYS TALC: Insurers Call for Italian Unit Dismissal from Chap. 11
-------------------------------------------------------------------
James Nani of Bloomberg Law reports that a federal judge will
evaluate insurers' requests to remove the Italian unit of Imerys
Talc America Inc. from bankruptcy, which could impact the company's
plan to distribute over $1 billion to thousands of cancer
patients.
U.S. Bankruptcy Judge Laurie Selber Silverstein of the District of
Delaware stated that she will review the evidence presented at a
hearing on Wednesday, April 16, 2025, before making a decision on
the insurers' claims that Imerys Talc Italy's Chapter 11 filing was
filed in bad faith.
About Imerys Talc America
Imerys Talc America, Inc. and its subsidiaries --
https://www.imerys-performance-additives.com/ -- are in the
business of mining, processing, selling and distributing talc. Its
talc operations include talc mines, plants and distribution
facilities located in Montana (Yellowstone, Sappington, and Three
Forks); Vermont (Argonaut and Ludlow); Texas (Houston); and
Ontario, Canada (Timmins, Penhorwood, and Foleyet). It also
utilizes offices located in San Jose, Calif., and Roswell, Ga.
Imerys Talc America and its subsidiaries, Imerys Talc Vermont,
Inc., and Imerys Talc Canada Inc., sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 19-10289) on Feb. 13, 2019.
TheDebtors were estimated to have $100 million to $500 million in
assets and $50 million to $100 million in liabilities as of the
bankruptcy filing.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Richards, Layton & Finger, P.A., and Latham &
Watkins LLP as their legal counsel, Alvarez & Marsal North America,
LLC as financial advisor, and CohnReznick LLP as restructuring
advisor. Prime Clerk, LLC, is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
tort claimants in the Debtors' Chapter 11 cases. The tort
claimants' committee is represented by Robinson & Cole, LLP.
JAG PUBLIC: Seeks to Hire Lane Law Firm PLLC as Counsel
-------------------------------------------------------
JAG Public Safety, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ The Lane Law
Firm, PLLC as counsel.
The firm will render these services:
a. assist, advise and represent the Debtor relative to the
administration of the chapter 11 case;
b. assist, advise and represent the Debtor in analyzing the
Debtor's assets and liabilities, investigating the extent and
validity of lien and claims, and participating in and reviewing any
proposed asset sales or dispositions;
c. attend meetings and negotiate with the representatives of
the secured creditors;
d. assist the Debtor in the preparation, analysis and
negotiation of any plan of reorganization and disclosure statement
accompanying any plan of reorganization;
e. appear, as appropriate, before this Court, the Appellate
Courts, and other Courts in which matters may be heard and to
protect the interests of Debtor before said Courts and the United
States Trustee; and
f. perform all other necessary legal services in these cases.
The firm's counsel will be paid at these hourly rates:
Robert Lane, Partner $595
Joshua Gordon $595
Associate Attorney $450 to $500
Paralegals $250
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received payment for its retainer in the amount of $35,000
from Sep. 16, 2024 through March 3, 2025.
Mr. Lane disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Robert C. Lane, Esq.
The Lane Law Firm, PLLC
6200 Savoy, Suite 1150
Houston, TX 77036
Telephone: (713) 595-8200
Facsimile: (713) 595-8201
Email: notifications@lanelaw.com
About JAG Public Safety LLC
JAG Public Safety LLC is a comprehensive service provider
specializing in traffic control solutions. The Company offers a
variety of services, including the sale, rental, and repair of
traffic control devices such as barricades, attenuators, and other
essential equipment. It also provides certified traffic control
plans, lane closure management, and utility services, focusing on
ensuring safety and efficiency in work zones.
In the petition signed by Lucio Gonzalez, president, the Debtor
disclosed $1,156,383 in assets and $2,287,649 in liabilities.
Judge Michael M Parker oversees the case.
Robert C Lane, Esq. at THE LANE LAW FIRM represents the Debtor as
legal counsel.
JP MORGAN 2025-3: Fitch Assigns 'B-(EXP)sf' Rating on Cl. B-2 Certs
-------------------------------------------------------------------
Fitch Ratings has assigned expected ratings to JP Morgan Mortgage
Trust 2025-3 (JPMMT 2025-3).
Entity/Debt Rating
----------- ------
JPMMT 2025-3
A-1A LT AAA(EXP)sf Expected Rating
A-1B LT AAA(EXP)sf Expected Rating
A-1C LT AAA(EXP)sf Expected Rating
A-1D LT AAA(EXP)sf Expected Rating
A-1M LT AAA(EXP)sf Expected Rating
A-1 LT AAA(EXP)sf Expected Rating
A-2 LT AA-(EXP)sf Expected Rating
A-3 LT A-(EXP)sf Expected Rating
M-1 LT BBB-(EXP)sf Expected Rating
B-1 LT BB-(EXP)sf Expected Rating
B-2 LT B-(EXP)sf Expected Rating
B-3 LT NR(EXP)sf Expected Rating
XS LT NR(EXP)sf Expected Rating
Transaction Summary
Fitch expects to rate the RMBS to be issued by J.P. Morgan Mortgage
Trust 2025-3, Series 2025-3 (JPMMT 2025-3), as indicated above. The
certificates are supported by 309 loans with a balance of $418.41
million as of the cutoff date. This represents the fourth Prime
transaction on the JPMMT shelf in 2025 and first Fitch rated JPMMT
transaction in 2025.
This is the first prime transaction to have a modified sequential
structure rather than a senior subordinate shifting interest
structure that has historically been seen in prime transactions.
Fitch typically sees modified sequential structures in
non-qualified mortgage transactions and sees the structure as
having several positive features that is more supportive of
providing credit protection to the rated classes than a shifting
interest structure. Additionally Fitch views a modified sequential
structure as being supportive of timely interest being paid to the
'AAAsf' rated classes and ultimate interest being paid to the
classes assigned 'AAsf'- 'Bsf' category ratings since principal is
able to be used to pay interest.
The certificates are secured by mortgage loans originated mainly by
United Wholesale Mortgage (UWM), which is assessed as an 'Above
Average' originator by Fitch, as well as PennyMac Loan Services,
which is assessed as an 'Acceptable' originator by Fitch. The
remaining originators are contributing less than 10% each to the
transaction. The loans are serviced by United Wholesale Mortgage
LLC (53.5%), which is not rated by Fitch but Cenlar rated RPS2 by
Fitch is the subservicer; JPMorgan Chase Bank, National Association
(JPMCB) (27.5%), rated 'RPS1-'/Stable by Fitch; PennyMac Loan
Services (13.4%), rated 'RPS2-'/Stable by Fitch; and PennyMac
Corporation (5.6%), rated 'RPS2-'/Stable by Fitch.
Per the transaction documents, 100% of the loans are designated as
Safe Harbor (APOR) Qualified Mortgage loans (SHQM).
Class A-1B, class A-1C, class A-1D, class A-1M, class A-2 and class
A-3 certificates are fixed rate, are capped at the net weighted
average coupon (WAC) and have a step-up feature. The pass-through
rate for class M-1 certificates will be a per annum rate equal to
the lesser of (i) the applicable fixed rate for such class of
certificates, determined at the time of pricing, or (ii) the net
WAC rate for the related distribution date. The class B-1-B, B-2
and B-3 certificates are based on the net WAC.
On any distribution date after the step-up date where the aggregate
unpaid interest carryover amount for class A certificates is
greater than zero, payments to the class A step-up interest
carryover reserve account will be prioritized over payment of
interest/unpaid interest payable to class B-3 certificates.
KEY RATING DRIVERS
Updated Sustainable Home Prices (Negative): Fitch views the home
price values of this pool as 10.0% above a long-term sustainable
level (versus 11.1% on a national level as of 3Q24, down 0.5% since
the prior quarter, based on Fitch's updated view on sustainable
home prices). Housing affordability is the worst it has been in
decades, driven by both high interest rates and elevated home
prices. Home prices increased 3.8% yoy nationally as of November
2024, despite modest regional declines, but are still being
supported by limited inventory.
Prime Credit Quality (Positive): The collateral consists of 309
fixed-rate, fully amortizing loans totaling $418.41 million. In
total, 100% of the loans qualify as SHQM. The loans were made to
borrowers with strong credit profiles, relatively low leverage and
large liquid reserves.
The loans are seasoned at approximately five months in aggregate,
according to Fitch, and three months per the transaction documents.
The borrowers have a strong credit profile, with a 765 FICO and a
38.1% debt-to-income (DTI) ratio, according to Fitch. Per the
transaction documents, the WA original and current FICO is 765,
with a nonzero original DTI of 38.13%. A large percentage of the
loans have a borrower with a Fitch-derived FICO score equal to or
above 750. Fitch determined that 73.9% of the loans have a borrower
with a Fitch-determined FICO score equal to or above 750. Based on
Fitch's analysis of the pool, the original WA combined
loan-to-value ratio (CLTV) is 73.5%, which translates to a
sustainable LTV ratio (sLTV) of 81.3%.
Per the transaction documents and Fitch's analysis, nonconforming
loans constitute 91.4% of the pool, while the remaining 8.6%
represent conforming loans. All the loans are designated as QM
loans, with 51.3% of the pool originated by a retail and
correspondent channel based on Fitch's analysis of the pool.
Of the pool, 100% comprises loans where the borrower maintains a
primary or secondary residence (92.2% primary and 7.8% secondary).
Single-family homes and planned unit developments (PUDs) constitute
89.6% of the pool, condominiums make up 4.8% and the remaining 5.7%
are multifamily. The pool consists of loans with the following loan
purposes, as determined by Fitch: purchases (77.7%), cashout
refinances (13.9%) and rate-term refinances (8.4%). Fitch views
favorably that no loans are for investment properties and a
majority of mortgages are purchases.
A total of 215 loans in the pool are over $1.0 million, and the
largest loan is approximately $4.23 million.
There are 19 loans in the transactions that have an interest rate
buy down feature. Fitch did not increase its loss expectations on
these loans since they were underwritten to the full interest
rate.
Of the pool loans, 37.1% are concentrated in California, followed
by Florida and Arizona. The largest MSA concentration is in the Los
Angeles MSA (16.9%), followed by the San Diego MSA (6.3%) and the
Phoenix MSA (5.6%). The top three MSAs account for 28.9% of the
pool. As a result, no probability of default (PD) penalty was
applied for geographic concentration.
Furthermore, 0.1% of the borrowers were viewed by Fitch as having a
prior credit event within the past seven years. Additionally, two
loans have a junior lien in conjunction with a first lien mortgage.
First lien mortgages constitute 100% of the pool (no second lien
loans are in the pool). All loans in the pool are current as of the
cutoff date.
Loan Count Concentration (Negative): The loan count for this pool
is 309 loans, which results in a weighted average number (WAN) of
262 loans. Due to the WAN being less than 300, a loan count
concentration penalty was applied. The loan count concentration
penalty applies when the WAN of loans is less than 300. The loan
count concentration for this pool results in a 1.06x penalty, which
increases loss expectations by 52 bps at the 'AAAsf' rating
category.
Full Advancing (Mixed): The servicers will provide full advancing
for the life of the transaction; each servicer is expected to
advance delinquent principal and interest (P&I) on loans that
entered into a pandemic-related forbearance plan. Although full P&I
advancing will provide liquidity to the certificates, it will also
increase the loan-level loss severity (LS) since the servicer looks
to recoup P&I advances from liquidation proceeds, which results in
less recoveries.
Nationstar is the master servicer and will advance if the servicer
is unable to do so. If the master servicer is unable to advance,
then the securities administrator (Citibank) will advance as
needed.
Modified Sequential-Payment Structure (Neutral): The transaction
has a modified sequential-payment structure that distributes
collected principal pro rata among the class A certificates while
excluding the mezzanine and subordinate certificates from principal
until all the class A certificates are reduced to zero. To the
extent that either a cumulative loss trigger event or a delinquency
trigger event occurs in a given period, principal will be
distributed first to class A-1B, A-1C, and A-1D then to A-1M and
then to A-2 and A-3 certificates until they are reduced to zero.
Once the A classes are paid in full, principal will be then
allocated first to M-1 then to B-1 and then to B-2 and finally to
B-3.
Like other modified sequential structures, interest is prioritized
over the payment of principal in the principal water fall with
interest being paid first prior to principal. The interest
waterfall is sequential with the class A receiving current interest
and unpaid interest first. Both of these features are supportive of
timely interest being paid to the 'AAAsf' rated classes.
The transaction has excess interest and subordination to provide
credit protection to the rated classes in the structure.
However, excess spread will be reduced on and after the
distribution date in May 2029, since the class A certificates have
a step-up coupon feature, whereby the coupon rate will be the lower
of (i) the applicable fixed rate plus 1.000% and (ii) the net WAC
rate.
Additionally, on any distribution date occurring on or after the
distribution date in May 2029 on which the aggregate unpaid
interest carryover amount for class A certificates is greater than
zero, payments to the interest carryover reserve account will be
prioritized over the payment of interest and unpaid interest
payable to class B-3 certificates in both the interest and
principal waterfalls. This feature is supportive of the 'AAAsf'
rated certificates being paid timely interest at the step-up coupon
rate under Fitch's stresses, and classes A-2 and A-3 being paid
ultimate interest at the step-up coupon rate under Fitch's
stresses. Fitch rates to timely interest for 'AAAsf' rated classes
and to ultimate interest for all other rated classes.
The transaction has excess interest and subordination to provide
credit protection to the rated classes in the structure.
Losses will be allocated reverse sequentially, with class B-3
taking losses first. Once the class A-2 is written off, the losses
will be allocated to the A1 classes. The A-1M class will take
losses first once the A-2 is written off and once the A-1M is
written off, losses will be allocated pro-rata among the A-1B,
A-1C, and A-1D classes.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Fitch incorporates a sensitivity analysis to demonstrate how the
ratings would react to steeper market value declines (MVDs) than
assumed at the MSA level. Sensitivity analyses was conducted at the
state and national levels to assess the effect of higher MVDs for
the subject pool as well as lower MVDs, illustrated by a gain in
home prices.
This defined negative rating sensitivity analysis demonstrates how
the ratings would react to steeper MVDs at the national level. The
analysis assumes MVDs of 10.0%, 20.0% and 30.0% in addition to the
model-projected 41.5% at 'AAA'. The analysis indicates that there
is some potential rating migration with higher MVDs for all rated
classes, compared with the model projection. Specifically, a 10%
additional decline in home prices would lower all rated classes by
one full category.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
The defined positive rating sensitivity analysis demonstrates how
the ratings would react to positive home price growth of 10% with
no assumed overvaluation. Excluding the senior class, which is
already rated 'AAAsf', the analysis indicates there is potential
positive rating migration for all of the rated classes.
Specifically, a 10% gain in home prices would result in a full
category upgrade for the rated class excluding those being assigned
ratings of 'AAAsf'.
This section provides insight into the model-implied sensitivities
the transaction faces when one assumption is modified, while
holding others equal. The modeling process uses the modification of
these variables to reflect asset performance in up and down
environments. The results should only be considered as one
potential outcome, as the transaction is exposed to multiple
dynamic risk factors. It should not be used as an indicator of
possible future performance.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Fitch was provided with Form ABS Due Diligence-15E (Form 15E) as
prepared by SitusAMC. The third-party due diligence described in
Form 15E focused on four areas: compliance review, credit review,
valuation review and data integrity. Fitch considered this
information in its analysis and, as a result, Fitch decreased its
loss expectations by 0.36% at the 'AAAsf' stress due to 100% due
diligence with no material findings.
DATA ADEQUACY
Fitch relied on an independent third-party due diligence review
performed on 100% of the pool. The third-party due diligence was
generally consistent with Fitch's "U.S. RMBS Rating Criteria."
SitusAMC was engaged to perform the review. Loans reviewed under
this engagement were given compliance, credit and valuation grades
and assigned initial grades for each subcategory. Minimal
exceptions and waivers were noted in the due diligence reports.
Refer to the "Third-Party Due Diligence" section for more detail.
Fitch also utilized data files provided by the issuer on its SEC
Rule 17g-5 designated website. Fitch received loan level
information based on the ResiPLS data layout format, and the data
provided was considered comprehensive. The data contained in the
ResiPLS layout data tape were reviewed by the due diligence
companies, and no material discrepancies were noted.
ESG Considerations
JPMMT 2025-3 has an ESG Relevance Score of '4+' for Transaction
Parties and Operational Risk. Operational risk is well controlled
for in JPMMT 2025-3, including strong transaction due diligence, an
'Above Average' aggregator, 53.5% of the pool originated by and
'Above Average' originator, and 27.5% of the pool being serviced by
a 'RPS1-' servicer which results in a reduction in expected losses
and is relevant to the rating.
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.
KIB1 LLC: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------
The U.S. Trustee for Region 17 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 cases of KIB1 LLC and its affiliates.
About KIB1 LLC
KIB1 LLC and its affiliates are an investment and real estate
holding firms headquartered in Las Vegas.
KIB1 and its affiliates, KIB2 LLC and KIB3 LLC, filed Chapter 11
petitions (Bankr. D. Nev. Case Lead No. 25-11426) on March 16,
2025. In its petition, KIB1 reported between $10 million and $50
million in both assets and liabilities.
Judge August B. Landis oversees the cases.
The Debtors are represented by:
Richard F. Holley, Esq.
Spencer Fane, LLP
300 South Fourth Street, Suite 1600
Las Vegas, NV 89101
Tel: (702) 408-3400
Email: rholley@spencerfane.com
KING WASH: Hires Colliers International as Real Estate Broker
-------------------------------------------------------------
King Wash Systems, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Virginia to employ Colliers
International Virginia LLC as real estate broker.
Colliers will represent the Debtor and certain of its affiliates in
the sale of its real property located at 5708 Northampton Blvd.,
Virginia Beach, VA 23455.
The firm will bill $450 per hour for the services of Lang Williams,
executive vice president of Colliers.
Mr. Williams 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 broker can be reached through:
Lang Williams
Colliers International Virginia LLC
150 West Main Street, Suite 1100
Norfolk, VA 23510
Tel: (757) 228-1808
Email: lang.williams@colliers.com
About King Wash Systems
King Wash Systems, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Va. Case No. 24-71923-SCS) on September 9, 2024. At
the time of filing, the Debtor estimated $1,000,001 to $10 million
in both assets and liabilities.
Judge Stephen C St John handles the case.
The Debtor hires Bedi Legal, P.C. as counsel.
KOGA LLC: Seeks to Hire Phillip K. Wallace PLC as Counsel
---------------------------------------------------------
Koga LLC seeks approval from the U.S. Bankruptcy Court for the
Eastern District of Louisiana to hire Phillip K. Wallace, PLC to
handle its Chapter 11 case.
The firm will be paid at these rates:
Attorneys $300 per hour
Paralegals $80 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Phillip K. Wallace, Esq. 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 K. Wallace, Esq.
Phillip K. Wallace, PLC
1795 W. Causeway Approach, Suite 103
Mandeville, LA 70471
Tel: (985) 624-2824
Fax: (985) 624-2823
Email: Philkwall@aol.com
About Koga LLC
Koga LLC is a private practice in Covington, La., specializing in
neurosurgery.
Koga LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. E.D. La. Case No. 24-11318) on July 11, 2024. In the
petition signed by Sebastian F. Koga, as Registered Agent/Managing
Member, the Debtor reports estimated assets and liabilities between
$1 million and $10 million each.
The Honorable Bankruptcy Judge Meredith S. Grabill oversees the
case.
The Debtor is represented by Phillip K. Wallace, Esq., at Phillip
K. Wallace, PLC.
KRAIG BOCRAFT: Reports $3M Loss in 2024, Faces Going Concern Doubt
------------------------------------------------------------------
Kraig Biocraft Laboratories, Inc. filed with the U.S. Securities
and Exchange Commission its Annual Report on Form 10-K reporting
that it incurred a net loss of $3,398,939 during the year ended
December 31, 2024, compared to $3,029,780 in 2023, and losses are
expected to continue in the near term.
The Company has a working capital deficiency of $8,874,143 and
stockholders' deficiency of $8,149,621 and used $1,839,086 of cash
in operations for the year ended December 31, 2024. The Company's
accumulated deficit is $53,085,719 at December 31, 2024.
The Woodlands, Texas-based M&K CPAs, PLLC, the Company's auditor
since 2013, issued a "going concern" qualification in its report
dated Mar. 28, 2025, citing that the Company has suffered net
losses from operations and has a net capital deficiency, which
raises substantial doubt about its ability to continue as a going
concern.
The ability of the Company to continue as a going concern is
dependent on the Company's ability to raise additional capital and
implement its business plan.
According to the Company, it had been funding operations through
private loans and the sale of common stock in private placement
transactions. "Our cash resources are insufficient to meet our
planned business objectives without additional financing."
"Management anticipates that significant additional expenditures
will be necessary to develop and expand our business before
significant positive operating cash flows can be achieved. Our
ability to continue as a going concern is dependent upon our
ability to raise additional capital and to ultimately achieve
sustainable revenues and profitable operations. At December 31,
2024, we had $673,264 of cash on hand. These funds are insufficient
to complete our business plan and as a consequence, we will need to
seek additional funds, primarily through the issuance of debt or
equity securities for cash to operate our business. No assurance
can be given that any future financing will be available or, if
available, that it will be on terms that are satisfactory to us.
Even if we are able to obtain additional financing, it may contain
undue restrictions on our operations, in the case of debt financing
or cause substantial dilution for our stockholders, in the case of
equity financing."
Management has undertaken steps as part of a plan to improve
operations with the goal of sustaining its operations for the next
12 months and beyond.
These steps include:
(a) raising additional capital and/or obtaining financing;
(b) controlling overhead and expenses; and
(c) executing material sales or research contracts.
There can be no assurance that the Company can successfully
accomplish these steps and it is uncertain that the Company will
achieve a profitable level of operations and obtain additional
financing. There can be no assurance that any additional financing
will be available to the Company on satisfactory terms and
conditions, if at all. As of the date of this Report, the Company
have not entered into any formal agreements regarding the above.
Management believes that actions presently being taken to obtain
additional funding and implement its strategic plans provide the
opportunity for the Company to continue as a going concern.
In the event the Company is unable to continue as a going concern,
the Company may elect or be required to seek protection from its
creditors by filing a voluntary petition in bankruptcy or may be
subject to an involuntary petition in bankruptcy. To date,
management has not considered this alternative, nor does management
view it as a likely occurrence."
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/mr39uwc7
About Kraig Biocraft
Ann Arbor, Mich.-based Kraig Biocraft Laboratories, Inc., a Wyoming
corporation, is organized to develop high-strength fibers using
recombinant DNA technology for commercial applications in technical
textiles.
As of Dec. 31, 2024, the Company had $1,505,333 in total assets,
$9,654,954 in total liabilities, and a total stockholders' deficit
of $8,149,621.
KTRV LLC: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of KTRV, LLC.
The committee members are:
1. Wampum Hardware Co.
Attn: Bill Sommers
636 Paden Road
New Galilee, PA 16141
Phone: (724) 336-8217
Email: WSommers@wampumhardware.com
2. Green Acres Contracting Co. Inc.
Attn: James T. McCort
148 Pennsylvania Avenue
Scottdale, PA 15683
Phone: (724) 887-8096
Email: JMcCort@greenacrescontracting.com
3. Shaw Big Vein Coal Company
Attn: Doug Sanner
1063 Rockdale Road
Rockwood, PA 15557
Phone: (814) 442-0935
Email: D_Sanner61@yahoo.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About KTRV LLC
KTRV is a Delaware holding company whose sole asset is its
membership interest in HCNR, a Pennsylvania limited liability
company. HCNR owns and operates five coal mines and related
operations in Pennsylvania and Maryland.
KTRV LLC and Heritage Coal & Natural Resources, LLC sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case
No. 25-10601) on March 30, 2025. The petitions were signed by
Brian Ryniker as chief restructuring officer. In the petition,
KTRV LLC reported estimated assets of $50 million to $100 million
and estimated liabilities of $50 million to $100 million, and
Heritage Coal reported estimated assets of $100 million to $500
million and estimated liabilities of $100 million to $500 million
The Debtors are represented by Morris James LLP. The Debtors'
restructuring advisor is RKC, LLC d/b/a RK Consultants LLC, and the
Debtors' claims and noticing agent is Stretto Inc.
LABOR LAW: Seeks to Hire Morris Anderson as Financial Advisor
-------------------------------------------------------------
Labor Law Poster Service, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Michigan to hire
Morris Anderson & Associates, Ltd. as financial advisor.
The firm's services include:
a. providing financial support in these Chapter 11 subchapter
V bankruptcy filings;
b. assisting with preparing bankruptcy schedules, statement of
financial affairs, and other related court reports;
c. assisting with preparing a thirteen (13) week cash flow
forecast;
d. providing support for preparing financial forecasts related
to confirming a plan of Reorganization;
e. any other tasks as requested by Client and agreed to by
Morris Anderson.
The firm will be paid at these rates:
Associate Director $325 to $395 per hour
Director $395 to $495 per hour
Managing Director $495 to $650 per hour
Principal $625 to $850 per hour
Morris Anderson received a retainer fee of $40,000 from Debtor
LLPS, INC.
Michael Boudreau, a director with Morris Anderson & Associates,
Ltd., 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:
Michael Boudreau
Morris Anderson & Associates, Ltd.
55 West Monroe Street, Ste. 2350
Chicago, IL 60603
Tel: (248) 227-0978
Email: mboudreau@morrisanderson.com
About Labor Law Poster Service, LLC
Labor Law Poster Service, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. MI Case
No. 25-00924), listing $100,001 to $500,000 in assets and $50,000
in liabilities.
Judge John T Gregg presides over the case.
Anthony J. Kochis, Esq. at Wolfson Bolton Kochis PLLC represents
the Debtor as counsel.
LABOR LAW: Seeks to Hire Wolfson Bolton Kochis as Counsel
---------------------------------------------------------
Labor Law Poster Service, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Michigan to hire
Wolfson Bolton Kochis PLLC as counsel.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties;
(b) administer the bankruptcy case and exercise oversight with
respect to the Debtor's affairs;
(c) prepare necessary legal papers;
(d) prepare adversary proceedings to determine the validity,
extent, and priority of asserted security interests and liens on
the Debtor's assets and prosecute Chapter 5 causes of action;
(e) appear in court and at meetings to represent the interests
of the Debtor;
(f) negotiate with individual creditors and any creditors'
committee should one be appointed;
(g) advise the Debtor regarding the sale of its assets under
11 U.S.C. section 363 and guide it through the sale process;
(h) prepare and prosecute a Chapter 11 plan of reorganization
and disclosure statement;
(i) communicate with creditors; and
(x) perform all other legal services for the Debtor in
connection with this Chapter 11 case.
The firm's hourly rates are as follows:
Scott A. Wolfson, Member $795
Peter C. Bolton, Member $725
Thomas J. Howlett, Member $695
Eric A. Zacks, Of Counsel $645
Lara F. Philips, Of Counsel $595
Anthony J. Kochis, Member $625
Amy H. Smith, Member $545
Michelle H. Bass, Member $495
Kelsey A. Postema, Associate $365
Logan A. Grizzell, Associate $365
Stephanie K. Travis, Paralegal $275
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $65,000 from the Debtor.
Mr. Wolfson 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:
Anthony J. Kochis, Esq.
3150 Livernois, Suite 275
Troy, MI 48083
Telephone: (248) 247-7103
Facsimile: (248) 247-7099
Email: akochis@wolfsonbolton.com
About Labor Law Poster Service, LLC
Labor Law Poster Service, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. MI Case
No. 25-00924), listing $100,001 to $500,000 in assets and $50,000
in liabilities.
Judge John T Gregg presides over the case.
Anthony J. Kochis, Esq. at Wolfson Bolton Kochis PLLC represents
the Debtor as counsel.
LAKE SPOFFORD: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The U.S. Trustee for Region 1 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Lake Spofford Cabins, Inc.
About Lake Spofford Cabins
Lake Spofford Cabins Inc., a company in Spofford, N.H., offers
year-round rental cottages on Spofford Lake with amenities such as
fully furnished interiors, Wi-Fi, and access to a private beach,
docks, and watercraft.
Lake Spofford Cabins sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.H. Case No. 25-10128) on March 3, 2025.
In its petition, the Debtor reported estimated assets between $1
million and $10 million and estimated liabilities between $100,000
and $500,000.
The Debtor is represented by:
William J. Amann, Esq.
Amann Burnett, PLLC
Tel: 603-696-5404
Email: wamann@amburlaw.com
LAW OFFICE OF GEORGE: Seeks to Tap Samuel L. Yellen as Counsel
--------------------------------------------------------------
Law Office of George T. Peters PLLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Samuel L. Yellen, Attorney at Law, PLLC as counsel.
The firm will serve as the Debtor's general bankruptcy counsel and
will advise Debtor with respect to their duties under the
Bankruptcy Code.
The firm will be paid at the rate of $250 per hour. The firm
received from the Debtor a retainer of $5,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Samuel L. Yellen, Esq., a partner at Samuel L. Yellen, Attorney at
Law, PLLC, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Samuel L. Yellen, Esq.
Samuel L. Yellen,
Attorney At Law, PLLC
1 Seneca St. 29th Fl., M-2
Buffalo, NY 14203
Tel: (716) 304-2820
Email: sam@yellenlegal.com
About Law Office of George T. Peters, PLLC
Law Office of George T. Peters, PLLC sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11373) on
August 8, 2024. In its petition, the Debtor reports estimated
assets up to $50,000 and estimated liabilities between $500,000 and
$1 million.
Honorable Bankruptcy Judge Philip Bentley handles the case.
The Debtor is represented by George Theodore Peters, Esq. at Law
Office Of George T. Peters.
LEISURE INVESTMENTS: April 22 Deadline for Panel Questionnaires
---------------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy cases of Leisure Investments
Holdings LLC, et al.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://tinyurl.com/yc8sby86 and return by email it to
Benjamin A. Hackman, Esq. -- Benjamin.A.Hackman@usdoj.gov -- at the
Office of the United States Trustee so that it is received no
later than Tuesday, April 22, 2025 at 4:00 p.m.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Leisure Investments Holdings
Leisure Investments Holdings LLC and affiliates are operating under
the name "The Dolphin Company," manage over 30 attractions,
including dolphin habitats, marinas, water parks, and adventure
parks, located in eight countries across three continents. Their
primary operations are based in Mexico, the United States, and the
Caribbean, with locations in Jamaica, the Cayman Islands, the
Dominican Republic, and St. Kitts. These attractions are home to
approximately 2,400 animals from more than 80 species of marine
life, including a variety of marine mammals such as dolphins, sea
lions, manatees, and seals, as well as birds and reptiles. As of
2023, the marine mammal population at the Debtors' parks includes
roughly 295 dolphins, 51 sea lions, 18 manatees, and 18 seals.
Leisure Investments Holdings LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case 25-10606) on
March 31, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $100 million and $500 million each.
Honorable Bankruptcy Judge Laurie Selber Silverstein handles the
case.
The Debtors tapped Robert S. Brady, Esq., Sean T. Greecher, Esq.,
Allison S. Mielke, Esq., and Jared W. Kochenash, Esq. as counsels.
The Debtors' restructuring advisor is Riveron Management Services,
LLC. The Debtors' claims & noticing agent is Kurtzman Carson
Consultants, LLC d/b/a Verita Global.
LIFESTYLE BRANDS: Lifestyle Unsecured Claims to Split $37K
----------------------------------------------------------
Lifestyle Brands, Inc., and Alexander David Maritczak III and Kelly
Catherine Maritczak filed with the U.S. Banktuptcy Court for the
Eastern District of Michigan a Plan of Reorganization dated March
18, 2025.
Lifestyle Brands, Inc. "Lifestyle" was created in 2021 by Alex
Maritczak to facilitate the purchase of American Pride Tattoos
"APT".
APT has been serving the Metro Detroit area for over 20 years with
5 locations providing tattooing and piercing services. Select
locations also provided minimal permanent make-up services. The
business was purchased in 2021 and had grown from one to five
stores since its inception.
This Plan of Reorganization proposes to pay each of the Debtors'
creditors from revenue generated by Lifestyle and the personal
income generated by the Maritczaks. The Plan establishes three
groups and ten classes of claims.
The Plan proposes that Alexander David Maritczak III continue to
operate Lifestyle, with the Plan being funded by revenue generated
from the operation of Lifestyle and the Maritczaks' personal
income.
Class VIII shall consist of the allowed general Unsecured Claims of
Lifestyle, other than the claims of the insiders, to the extent
such exist. The Class VIII Claims shall be paid in 20 quarterly
payments in the amounts set forth in Exhibit C-2, and totaling the
sum of $37,488.00, which is an amount that is greater than the
liquidation value of the assets ($37,486.00). Creditors will
receive their pro rata share of these payments, based on the
allowed amounts of the general unsecured claims. The Class VIII
Creditors are impaired.
Class IX shall consist of the allowed general Unsecured Claims of
Debtors, Alexander David Maritczak III and Kelly Catherine
Maritczak, other than the claims of Insiders. The Class IX Claims
shall be paid 20 quarterly payments in the amounts set forth in
Exhibit "C-2", and totaling the sum of $101,403.00, which is an
amount that is greater than the liquidation value of the
Maritczak's assets ($101,399.32). Creditors will receive their pro
rata share of these payments, based on the allowed amounts of the
general unsecured claims. The Class IX Creditors are impaired.
Class X shall consist of the Lifestyle Brand's equity holders,
Alexander Maritczak. The Class X interests shall be deemed
cancelled as of the Effective Date of this Plan. The Class X
interests will receive no distribution under this Plan.
On Confirmation of the Plan, all property of the Debtors, tangible
and intangible, including, without limitation, licenses, furniture,
fixtures and equipment, will revert, free and clear of all Claims
and Equitable Interests except as provided in the Plan, to the
Debtors. The Debtors expect to have sufficient cash on hand to make
the payments required on the Effective Date. All plan payments may
be prepaid without penalty.
The Plan proposes that Alexander David Maritczak III continue to
operate Lifestyle, with the Plan being funded by revenue generated
from the operation of Lifestyle and the Maritczaks' personal
income.
A full-text copy of the Plan of Reorganization dated March 18, 2025
is available at https://urlcurt.com/u?l=3DpCku from
PacerMonitor.com at no charge.
Counsel to the Debtors:
Mark H. Shapiro, Esq.
STEINBERG SHAPIRO & CLARK
25925 Telegraph Road, Suite 203
Southfield, MI 48033
Tel: (248) 352-4700
Email: shapiro@steinbergshapiro.com
About Lifestyle Brands
Lifestyle Brands sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-51881) on Dec. 18,
2024, with $89,657 in assets and $2,178,249 in liabilities.
Alexander Maritczak, president of Lifestyle Brands, signed the
petition.
Judge Mark A. Randon presides over the case.
Mark H. Shapiro, Esq., at Steinberg Shapiro & Clark, is the
Debtor's legal counsel.
LSF COACHING: Gets Approval to Hire Havner Law Firm as Attorney
---------------------------------------------------------------
LSF Coaching Corporation, Inc. received approval from the U.S.
Bankruptcy Court for the Eastern District of Arkansas to hire
Havner Law Firm PA to handle its bankruptcy proceedings.
The firm will charge $350 per hour for services rendered by its
attorney, Kyle Havner, Esq., and $250 per hour for paralegals.
Ms. Havner disclosed in court filings that the firm is
disinterested as defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Kyle W. Havner, Esq.
Havner Law Firm, P.A.
PO Box 21539
White Hall, AR 71612
Phone: (870) 534-1803
Fax: (501) 712-1235
Email: havnerlaw@gmail.com
About LSF Coaching Corporation
LSF Coaching Corporation, Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No. 25-10435) on
February 11, 2025, listing up to $50,000 in assets and between
$100,001 and $500,000 in liabilities.
Judge Phyllis M. Jones presides over the case.
Kyle Havner, Esq., at Havner Law Firm, PA represents the Debtor as
bankruptcy counsel.
MAWSON INFRASTRUCTURE: Reports $46.3M Net Loss in 2024
------------------------------------------------------
Mawson Infrastructure Group filed with the U.S. Securities and
Exchange Commission its Annual Report on Form 10-K reporting a net
loss for the year ended December 31, 2024, of $46.3 million
compared to $58.5 million for the comparable period in 2023.
Revenue for the year ended December 31, 2024, was $59.3 million
compared to $43.6 million for the same period in 2023.
As of December 31, 2024, the Company had $61.4 million in total
assets, $64.7 million in total liabilities, and a total
stockholders' deficit of $3.2 million.
Rahul Mewawalla, the Company's CEO and President, commented, "We
have led the Company through a journey of transformation through
the year, and as a result, we are pleased to deliver both
significant revenue and gross profit growth --136% Y/Y revenue
growth in our digital colocation business and 42% Y/Y revenue
growth in our energy management business. In addition, we increased
our overall gross profit by 35% Y/Y. Moreover, we brought in
several enterprise-grade customers and expanded our platform
offerings into artificial intelligence and high-performance
computing markets. I am incredibly proud of our organization's
strategic, operational, and financial execution as we successfully
transformed Mawson into a multi-tenant digital infrastructure
platform serving enterprise-grade customers, and with offerings and
solutions across artificial intelligence, high-performance
computing, digital assets and other computing markets."
A full-text copy of the Company's Form 10-K is available at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1218683/000101376225004161/ea0234332-10k_mawson.htm
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.
MCF CLO 10: S&P Assigns BB- (sf) Rating on Class E-R Notes
----------------------------------------------------------
S&P Global Ratings assigned its ratings to the replacement class
X-R, A-1-R, B-R, C-R, D-2-R, and E-R debt, the class A-1A-R,
A-1B-R, A-1C-R and A-2-R loans, and the new class A-2-R and D-1-R
debt from MCF CLO 10 Ltd./MCF CLO 10 LLC, a CLO managed by Apogem
Capital LLC that was originally issued in March 2023. At the same
time, S&P withdrew its ratings on the original class X, A, A-L, B,
C, D, and E debt following payment in full on the April 15, 2025,
refinancing date.
The replacement debt was issued via a supplemental indenture, which
outlines the terms of the replacement debt. According to the
supplemental indenture:
-- The non-call period was extended to April 15, 2027.
-- The reinvestment period was extended to April 15, 2029.
-- The legal final maturity dates for the replacement debt and the
existing subordinated notes were extended to April 15, 2037.
-- The target initial par amount will increase to $450 million
from $421 million. There will be no additional effective date or
ramp-up period, and the first payment date following the
refinancing is July 15, 2025.
-- Replacement class X-R debt was issued on the refinancing date
and is expected to be paid down using interest proceeds during the
first eight payment dates in equal installments of $687,500,
beginning on the July 2025 payment date.
-- The new class A-2-R and D-1-R debt were issued in connection
with this refinancing.
-- The required minimum overcollateralization and interest
coverage ratios were amended.
-- Approximately $1.9 million in additional subordinated notes
were issued on the refinancing date.
S&P said, "Our review of this transaction included a cash flow
analysis, based on the portfolio and transaction data in the
trustee report, to estimate future performance. In line with our
criteria, our cash flow scenarios applied forward-looking
assumptions on the expected timing and pattern of defaults and the
recoveries upon default under various interest rate and
macroeconomic scenarios. Our analysis also considered the
transaction's ability to pay timely interest and/or ultimate
principal to each of the rated tranches.
"We will continue to review whether, in our view, the ratings
assigned to the debt remain consistent with the credit enhancement
available to support them and take rating actions as we deem
necessary."
Ratings Assigned
MCF CLO 10 Ltd./MCF CLO 10 LLC
Class X-R, $5.50 million: AAA (sf)
Class A-1-R, $171.00 million: AAA (sf)
Class A-1A-R loans, $50.00 million: AAA (sf)
Class A-1B-R loans, $15.00 million: AAA (sf)
Class A-1C-R loans, $25.00 million: AAA (sf)
Class A-2-R, $8.00 million: AAA (sf)
Class A-2-R loans, $10.00 million: AAA (sf)
Class B-R, $27.00 million: AA (sf)
Class C-R (deferrable), $36.00 million: A (sf)
Class D-1-R (deferrable), $27.00 million: BBB (sf)
Class D-2-R (deferrable), $8.05 million: BBB- (sf)
Class E-R (deferrable), $18.95 million: BB- (sf)
Ratings Withdrawn
MCF CLO 10 Ltd./MCF CLO 10 LLC
Class X to NR from 'AAA (sf)'
Class A to NR from 'AAA (sf)'
Class A-L to NR from 'AAA (sf)'
Class B to NR from 'AA (sf)'
Class C to NR from 'A (sf)'
Class D to NR from 'BBB- (sf)'
Class E to NR from 'BB- (sf)'
Other Debt
MCF CLO 10 Ltd./MCF CLO 10 LLC
Subordinated notes, $52.30 million: NR
NR--Not rated.
MERIDIANLINK INC: Moody's Assigns 'B2' CFR, Outlook Stable
----------------------------------------------------------
Moody's Ratings assigned a B2 corporate family rating, a B2-PD
probability of default rating and a SGL-1 speculative grade
liquidity (SGL) score to MeridianLink, Inc. Concurrently, Moody's
affirmed ML California Sub, Inc.'s senior secured first lien bank
credit facility, which consists of a $476.3 million term loan due
November 2028 and a $50 million revolving credit facility expiring
November 2026, at B2. ML California Sub, Inc.'s B2 CFR, B2-PD PDR
ratings and SGL-1 score were withdrawn. The outlook on both
entities is stable.
RATINGS RATIONALE
MeridianLink's B2 CFR is constrained by the company's elevated
debt/EBITDA leverage of 6.8x (including Moody's adjustments, which
includes the expensing of share based compensation) for the year
ended 31 December, 2024. The increase in leverage during 2024 was a
result of the company's $50 million incremental term loan issuance
in May as well as its much higher share-based compensation in
comparison to 2023 levels. However, Moody's expects stock
compensation to be lower again during 2025, partially contributing
to Moody's expected decrease in debt/EBITDA leverage towards 6.0x
during the next 12 to 18 months. Additionally, the company operates
on a limited scale and has a customer base primarily composed of
community banks and credit unions with assets under management
between $100 million and $10 billion, mortgage lenders, and other
financial services providers. The credit profile is also
constrained by the company's concentrated equity ownership and the
risk of potential debt-financed acquisitions or dividends, which
suggest an aggressive financial strategy, and presents corporate
governance risks.
The credit profile is supported by MeridianLink's good
profitability margins, robust free cash flow generation, and very
good liquidity. Additionally, the company has a solid position in
its niche target market, with high revenue visibility and strong
customer retention rates. A capital structure including a large
equity cushion also supports the rating.
MeridianLink's SGL-1 liquidity score reflects the company's very
good liquidity that is supported by a cash balance of approximately
$93 million as of 31 December 2024. MeridianLink's liquidity
position is also supported by its good cash flow generation, with
current FCF/debt of roughly 15% and Moody's expectations of
FCF/debt to continue in the mid-teens percentage range over the
next 12-15 months. The company's liquidity is also bolstered by an
undrawn $50 million revolving credit facility expiring November
2026. While MeridianLink's term loan (due November 2028) is not
subject to financial covenants, the revolving credit facility has a
springing covenant based on a maximum first-lien net leverage
ratio. Moody's do not expect the covenant to be triggered, but
anticipate that the company would have ample operating cushion
under the covenant if it were to be tested over the next 12-15
months.
The stable outlook reflects Moody's expectations that
MeridianLink's revenues will grow in the low to mid single-digit
percentage range during the next 12 to 18 months while maintaining
healthy EBITDA margins in the mid 20% range, and continuing to
generate strong free cash flow. Moody's also expects debt/EBITDA
(including Moody's adjustments) to decrease towards 6.0x during the
next 12 to 18 months.
The B2 senior secured first-lien bank credit facility rating,
consisting of a $476 million term loan due November 2028 and a $50
million revolver expiring in November 2026, is in line with the B2
CFR, reflecting the predominance of the credit facilities in
MeridianLink's capital structure. The credit facility is guaranteed
on a secured, first-priority basis by each of the borrower's
present and future, direct and indirect domestic subsidiaries. All
guarantees are secured by the assets of the guarantor.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The rating could be upgraded if the company sustains debt/EBITDA
leverage under 5.0x and increases scale and profitability, while
adhering to a more balanced financial policy. The company would
also be required to maintain a strong liquidity profile.
The rating could be downgraded if the company were to experience a
weakening competitive position, revenue and EBITDA margin declines,
or if debt/EBITDA leverage increased and remained above 6.5x. A
deterioration of liquidity and cash flow generation would also lead
to a negative rating action.
MeridianLink is a leading provider of SaaS-based software solutions
to financial institutions that support loan and deposit account
origination and related workflow applications. The company
completed its IPO in 2021 but is also majority controlled by Thoma
Bravo, LLC (Thoma Bravo). Revenues for the year ended 31 December,
2024 were approximately $316 million.
The principal methodology used in these ratings was Software
published in June 2022.
MIDWEST VETERINARY: S&P Withdraws 'B-' Issuer Credit Rating
-----------------------------------------------------------
S&P Global Ratings withdrew all its ratings on Midwest Veterinary
Partners LLC (MVP), including the 'B-' issuer credit rating,
following the completion of the company's acquisition by SVP
Holdings LLC (d/b/a Southern Veterinary Partners) and the
subsequent repayment of its rated debt. At the time of the
withdrawal, S&P's outlook on MVP was stable.
MIRACLE RESTAURANT: Amends First Citizens & Pawnee Secured Claims
-----------------------------------------------------------------
Miracle Restaurant Group, LLC, submitted a Third Amended Plan of
Reorganization under Subchapter V dated March 18, 2025.
This case was commenced under Subchapter V of Chapter 11 of the
Bankruptcy Code. This Subchapter enables small business debtors to
more effectively reorganize in Chapter 11.
Under this Plan, Store #8879 in Des Plaines, Illinois (the "Des
Plaines Store"), Store #1921 in Laurel, Mississippi (the "Laurel
Store"), and Store #8822, located in Slidell, Louisiana (the
"Slidell Store" and together with the Des Plaines Store and the
Laurel Store, the "Closing Stores") will be closed. The equipment
that was in the Des Plaines Store was moved to Store #762, located
in Niles, Illinois (the "Niles Store") because the equipment in the
Niles Store was older and needed to be upgraded.
Pawnee has a lien on the Coca-Cola Machine in the Des Plaines Store
and will retain its lien on that equipment. Class 8 claims will be
paid from the Debtor's projected disposable income as indicated in
the pro forma. The Plan provides for payments to Class 8 creditors
in the amount of $17,657 in year 1, $6,079 in year 2, and $38,632
in year 3.
This Plan provides for the treatment of Claims and Interests as
follows, and as more fully described herein:
* Seven classes of Secured Claims (First Franchise, SBA,
Woodvine, and the Equipment Lenders), which will be paid as
provided. For the Closing Stores, any equipment securing any of the
Equipment Lenders will be surrendered to the applicable Equipment
Lender or the SBA and the claim of that Equipment Lender or SBA
will be reduced by the fair market value of the collateral
abandoned. See In re Sandy Ridge Dev. Corp., 881 F.2d 1346 (5th
Cir. 1989). For the stores kept open pursuant to this Plan, the SBA
will be paid up to the value of its collateral and any remaining
balance due will be treated as a general unsecured claim. The
Equipment Lenders whose agreements relate to stores that are kept
open will be paid pursuant to the terms of their respective
Agreements; and
* One class of Unsecured Claims that will be paid their pro
rata share of the general unsecured creditor funds;
Class 6 consists of the Secured Claim of First Citizens. First
Citizens secured claim in the amount of $56,456.00 relating to
Claim # 46 will be amortized over 5 years at 11.3%, consistent with
the original loan documents. The Debtor will make monthly payments
of $1,236.53 for 60 months. First Citizens secured claim in the
amount of $24,450 relating to Claim #47 will be amortized over 5
years at 10% interest. The Debtor will make monthly payments of
$519.49 for 60 months, consistent with the original loan
documents.
Payments to First Citizens for its secured claims will commence on
the first of the month following the Effective Date of the Plan.
First Citizens' remaining unsecured Claim #48 in the amount of
$35,251.75 will participate pro rata in distributions to Class 8
general unsecured claims. Class 6 is impaired.
Class 7 consists of the Secured Claim of Pawnee. Pawnee Claim No.
13 is associated with the financing of certain office equipment
located at the Debtor's office in Mandeville, Louisiana. Pawnee has
a security interest in the equipment to secure its Claim No. 13, in
the amount of $16,423.13. Claim No. 13 will be amortized over 3
years at 10.8%, consistent with the original loan documents. Claim
No. 13 will be paid in 36 monthly payments of $535.73, commencing
on the twentieth day of the month following the Effective Date of
the Plan.
Pawnee Claim No. 14 is associated with the financing of certain
Coke beverage equipment located at the Des Plaines Store, which has
been closed. The Coke beverage equipment in the Des Plaines Store
was moved to the Niles Store and Pawnee will maintain its lien on
the Coke beverage equipment in the Niles Store and is granted an
allowed secured claim in the amount of $13,272.62. Claim No. 14
will be paid out over 3 years at 18.6%, consistent with the
original loan documents. Claim No. 14 will be paid in 36 monthly
payments of $483.84, commencing on the twentieth day of the month
following the Effective Date of the Plan.
Pawnee Claim No. 15 is associated with certain equipment and
furniture located at a store in Walker Louisiana (the "Walker
Store"). The equipment in the Walker Store will be surrendered to
Pawnee. On account of Claim No. 15, associated with the Walker
Equipment, which the Debtor values at $0, Pawnee will have a Class
8 general unsecured claim in the amount of $38,394.94. Pawnee's
Claim No. 15 will participate pro rata in distributions to Class 8
general unsecured claims. Class 7 is impaired.
Like in the prior iteration of the Plan, General Unsecured
Creditors will receive pro rata payments from the Debtor's
projected disposable income over 3 years.
The Debtor shall fund the plan from the ERTC funds and projected
disposable income.
A full-text copy of the Third Amended Plan dated March 18, 2025 is
available at https://urlcurt.com/u?l=QpZxmW from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Douglas S. Draper, Esq.
Leslie A. Collins, Esq.
Greta M. Brouphy, Esq.
Michael E. Landis, Esq.
Heller, Draper, Patrick, Horn & Manthey, LLC
650 Poydras Street, Suite 2500
New Orleans, LA 70130
Phone: (504) 299-3300
Email: ddraper@hellerdraper.com
lcollins@hellerdraper.com
gbrouphy@hellerdraper.com
mlandis@hellerdraper.com
About Miracle Restaurant Group
Miracle Restaurant Group, LLC owns and operates a fast food
restaurant in Covington, La.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. La. Case No. 24-11158) on June 20,
2024, with $1 million to $10 million in both assets and
liabilities. Dwayne Murray, Esq., at Murray & Murray, LLC, serves
as Subchapter V trustee.
Judge Meredith S. Grabill presides over the case.
The Debtor tapped Douglas S. Draper, Esq., at Heller, Draper &
Horn, LLC as legal counsel and Peak Franchise Capital, LLC, as
financial advisor.
MISSION POINT: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Mission Point of Detroit, LLC
2102 Orleans Street
Detroit, MI 48207
Business Description: Mission Point of Detroit, LLC is a skilled
nursing and rehabilitation facility located
in Detroit, Michigan. It operates under the
Mission Point Healthcare Services network,
which manages post-acute care centers across
the state. The facility provides short-term
rehabilitation, long-term care, and
specialized nursing services.
Chapter 11 Petition Date: April 16, 2025
Court: United States Bankruptcy Court
Eastern District of Michigan
Case No.: 25-43883
Judge: Hon. Maria L Oxholm
Debtor's Counsel: Ryan Heilman, Esq.
HEILMAN LAW PLLC
40900 Woodward Ave., Suite 100
Bloomfield Hills, MI 48304-5122
Tel: 248-835-4745
E-mail: ryan@heilmanlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Hari Mali, II, a/k/a H. Roger Mali as
manager.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/LOMYHTY/Mission_Point_of_Detroit_LLC__miebke-25-43883__0003.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/LG42PVI/Mission_Point_of_Detroit_LLC__miebke-25-43883__0001.0.pdf?mcid=tGE4TAMA
MJM LANDSCAPE: Seeks Cash Collateral Access Until July 31
----------------------------------------------------------
MJM Landscape Associates, Inc. asked the U.S. Bankruptcy Court for
the District of Arizona for authority to use cash collateral from
May 1 to July 31 to pay the expenses set forth in its budget.
The Debtor previously received authorization to use cash collateral
through April 30 and now seeks continued approval to ensure it can
meet ongoing operating obligations.
The Debtor operates with roughly 24 employees and works with both
boutique and national homebuilders, primarily in Pima County. It
experienced severe cash flow issues after taking out three
high-interest merchant cash advance (MCA) loans from Square
Funding, Byzfunder of NY, and Fox Funding. These loans disrupted
business stability, with one creditor, Fox Funding, having a
perfected lien under Arizona UCC filings.
Current receivables total around $300,000, and the Debtor has
approximately $60,000 in cash on hand. The Debtor's February and
March 2025 cash deposits were $296,000 and $448,000, respectively,
indicating recent revenue strength. Despite vehicle and equipment
loans, the Debtor asserts it holds equity in most assets and has
adequate insurance coverage in place.
The Debtor believes that secured creditors are adequately protected
through equity cushions and replacement lien rights.
A court hearing is set for April 29.
About MJM Landscape Associates
MJM Landscape Associates, Inc. filed Chapter 11 petition (Bankr. D.
Ariz. Case No. 25-00663) on January 27, 2025, listing between
$500,001 and $1 million in assets and between $1 million and $10
million in liabilities.
Judge Brenda Moody Whinery oversees the case.
The Debtor is represented by Charles R. Hyde, Esq. at Law Offices
of C.R. Hyde, PLC.
MOUNTAIN PROVINCE: S&P Upgrades ICR to 'CCC' on Debt Refinancing
----------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Canada-based
Mountain Province Diamonds Inc. (MPV) to 'CCC' from 'SD' (selective
default), which reflects its view of the company's constrained
liquidity position post-refinancing stemming from a free operating
cash flow (FOCF) deficit expected this year and sizable debt
servicing requirements in 2026.
S&P said, "We also raised our issue-level rating on the company's
senior secured second-lien notes now due in December 2027 to 'CCC'
from 'D' and revised the recovery rating to '3' from '1'. Our '3'
recovery rating reflects our expectation for meaningful (50%-70%;
rounded estimate: 50%) recovery in the event of a payment default.
"The negative outlook reflects our view of MPV's constrained
liquidity position that could lead to a default or distressed debt
restructuring within the next 12 months.
The upgrade follows MPV's refinancing that extended its debt
maturity profile and infused liquidity. MPV recently completed a
broader refinancing transaction, with additional debt to help fund
ongoing operating and capital spending cash calls at its Gahcho Kue
mine. The company amended its second-lien notes indenture to extend
the maturity to December 2027 from December 2025, elevate the
priority of certain claims above second-lien noteholders, and defer
interest scheduled to be paid in 2025 to June 2026. MPV also
introduced a new term loan (up to US$40 million) and a new working
capital facility (C$33 million) to support liquidity in the face of
challenging operating conditions in 2025, including lower rough
diamond production, depressed prices, and higher capital
expenditure (capex). Under the new debt structure, MPV's joint
venture partner De Beers Canada Inc. will have a first ranking
security interest in its assets for MPV's share of the
decommissioning obligations (C$60 million) at Gahcho Kue.
S&P said, "In our view, the refinancing lowered the risk of a
liquidity shortfall this year by extending the company's notes
maturity by two years, deferring interest payment to 2026, and
providing additional cash on the balance sheet.
"The rating reflects our view that MPV's liquidity remains
constrained over the next 12 months. This is in large part because
of challenging operating conditions and high capex requirements. We
assume the company will fund significant FOCF deficits in 2025 in
part with the new sources of liquidity. Our estimates incorporate a
year-over-year decrease in MPV's rough diamond production of about
10% to the low-2 million carats area (for its 49% share of Gahcho
Kue). We also expect rough diamond prices will remain low over this
period, at about US$75 per carat, amid weaker diamond market
conditions, including the impact from the rising market share of
cheaper lab-grown diamonds. We expect MPV's debt to EBITDA will
remain elevated at more than 6x in 2025 and it will have minimal
cash on hand later this year.
"We understand MPV is transitioning into higher-grade NEX
kimberlite bodies in mid-2025 that should improve production and
operating cash flow, reducing leverage in 2026. However, our cash
flow estimates will remain sensitive to relatively modest changes
in our key assumptions. In particular, the diamond market is
generally opaque relative to many commodities, and rough diamond
prices have historically been volatile. The company relies
exclusively on cash flow from marketing its 49% share of rough
diamond production from Gahcho Kue, which also presents exposure to
unexpected operating disruptions.
"We believe MPV would remain vulnerable and dependent on improving
operating results to service and repay its debt. The company will
be required to repay its new bridge loan, working capital facility,
and make payments on deferred interest on its 2025 notes in just
over 12 months. In our view, the company could face a liquidity
deficit to meet these obligations and maintain adequate liquidity
beyond that, which increases the possibility of a default or
distressed debt restructuring within the next 12 months.
"The negative outlook reflects our view of MPV's constrained
liquidity position and increased debt servicing obligations in 2026
(including 2025 interest payment deferrals) that could lead to a
default or a distressed debt restructuring within the next 12
months."
S&P could downgrade MPV if:
-- The company pursued a below-par debt repurchase or refinancing
that S&P deemed as tantamount to default; or
-- A default, distressed exchange, or redemption appeared
inevitable within six months, absent unanticipated significantly
favorable changes in the company's circumstances.
S&P could upgrade MPV within the next 12 months if it views a
default as less likely. This could be if business conditions and
liquidity improve such that MPV is more likely to meet its ongoing
operating and debt servicing obligations, with improved cash flow
prospects.
MULBERRY GROUP: Case Summary & 11 Unsecured Creditors
-----------------------------------------------------
Debtor: The Mulberry Group LLC
2501 Dicks Creek Road
Clarkesville, GA 30523
Business Description: The Mulberry Group LLC operates as a real
estate investment firm, providing rental
properties and related property management
services.
Chapter 11 Petition Date: April 13, 2025
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 25-20508
Debtor's Counsel: John A. Christy, Esq.
SCHREEDER, WHEELER & FLINT, LLP
1100 Peachtree Street, Suite 800
Atlanta GA 30309
Tel: (404) 954-9819
E-mail: jchristy@swfllp.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by S. Roger Cahoon as managing member.
A copy of the Debtor's list of 11 unsecured creditors is available
for free on PacerMonitor at:
https://www.pacermonitor.com/view/LJXMOZI/The_Mulberry_Group_LLC__ganbke-25-20508__0001.1.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/LOLUADA/The_Mulberry_Group_LLC__ganbke-25-20508__0001.0.pdf?mcid=tGE4TAMA
MUNAWAR LAW: Seeks to Hire Ronald D. Weiss P.C. as Attorney
-----------------------------------------------------------
Munawar Law Group PLLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to hire Ronald D.
Weiss, P.C. as attorney.
The firm will render these services:
(a) providing legal advice with respect to the powers and
duties of the Debtor-in-Possession in the continued management of
its property;
(b) representing the Debtor before the Bankruptcy Court and at
all hearings on matters pertaining to his affairs, as
Debtor-in-Possession, including contested matters that may arise
during the Chapter 11 case;
(c) advising and assisting Debtor in the preparation and
negotiation of a Plan of Reorganization with his creditors;
(d) preparing necessary or desirable applications, motions,
answers, orders, reports, documents, and other legal papers; and
(e) performing other legal services for the Debtor which may
be desirable and necessary.
The hourly rates of the firm's counsel and staff are $450 per hour
for attorneys and $250 per hour for paralegals.
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $32,500.
Ronald D. Weiss, Esq., an attorney at The Law Office of Ronald D.
Weiss, disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Ronald D. Weiss, Esq.
LAW OFFICE OF RONALD D. WEISS, P.C.
445 Broadhollow Road, Suite CL-10
Melville NY 11747
Tel: (631) 271-3737
Fax: (631) 271-3784
Email: weiss@ny-bankruptcy.com
About Munawar Law Group PLLC
Munawar Law Group PLLC is operating as a legal services firm with
offices in New York City and Jericho, New York.
Munawar Law Group PLLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10020) on January 7,
2025. In its petition, the Debtor reports estimated assets between
$100,000 and $500,000 and estimated liabilities between $1 million
and $10 million.
Honorable Bankruptcy Judge David S. Jones handles the case.
Ronald D. Weiss, Esq. represents the Debtor as counsel.
NAKED JUICE: S&P Lowers ICR to 'CC' on Announced Debt Restructuring
-------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Naked Juice
LLC to 'CC' from 'CCC'.
S&P said, "We also lowered our rating on the first-lien credit
facility to 'CC' from 'CCC' and our rating on the second-lien term
loan to 'C' from 'CC'. The recovery ratings on the first-lien
credit facility and second-lien term loan remain '3' (50%-70%;
rounded estimate: 50%) and '6' (0%-10%; rounded estimate: 0%),
respectively.
"The negative outlook reflects that we will lower our rating on
Naked Juice to 'SD' (selective default) or 'D' (default) upon
completion of the distressed restructuring."
Naked Juice has launched a liability management exercise that
includes a distressed exchange with participating term loan
lenders, the option to pay interest in kind (PIK) on the exchanged
facility, and an extension of the revolving credit facility and
securitization facility maturities. S&P also believes the company
secured a commitment for $400 million in new-money financing.
S&P said, "We believe the proposed transaction--which is not yet
complete—will be tantamount to a default. Naked Juice LLC
launched a liability management exercise debt restructuring with
several components. Participating term loan lenders will have the
opportunity to exchange existing debt at a discount for a new
credit facility. Additionally, the company will have the option to
pay interest in kind on a portion of the new facility. It is our
understanding a majority of lenders participated in the exchange
although we do not know whether this includes first-lien lenders
only or both first- and second-lien lenders. We view this as
distressed given the company's unsustainable capital structure and
since term loan lenders will not receive their original principal
at maturity and interest like promised. Moreover, nonparticipating
lenders will likely have a lower security position in the pro forma
capital structure in the event of a default. Debt trading prices
are distressed with both the first-lien term loan and second-lien
term loan trading well below 50 cents on the dollar. First- and
second-lien debt total around $2.4 billion."
The company also is attempting to extend maturities on its
revolving credit facility (to December 2028 from January 2027) and
accounts receivable securitization facility (to January 2029 from
July 2025) and upsize the securitization facility to $155 million
from $72.5 million to use for working capital and general corporate
purposes. It is uncertain whether these lenders will receive
adequate compensation for extending maturities on these debt
instruments.
S&P said, "We expect to lower the rating over the near term once
the transaction is complete and we have received the relevant
documentation from the company. We have reason to believe the
transaction is not yet complete. We plan to lower the rating to 'D'
(default) if we believe the company has defaulted on its entire
capital structure or 'SD' (selective default) if the company
selectively defaulted on certain debt instruments.
"We view Naked Juice as a distressed issuer given its unsustainable
capital structure. S&P Global Ratings-adjusted leverage was about
12x and EBITDA interest coverage was 1x for the trailing 12 months
ended Sept. 30, 2024. Absent a transaction, we also believe there
is possibility of a default in 2025 considering our forecast for
total cash burn of about $310 million in 2025 (which is after the
$85 million true-up due to PepsiCo Inc. and repayment of about $190
million for the 2024 term loans including PIK interest). This
compares to $264 million pro forma liquidity on Sept. 7, 2024.
"The negative outlook reflects that we will lower our rating on
Naked Juice to 'SD' (selective default) or 'D' (default) upon
completion of the distressed restructuring."
NATGASOLINE LLC: S&P Assigns 'BB-' Rating on Secured Term Loan B
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term rating to
Natgasoline LLC's debt issuance. S&P also assigned a '2' recovery
rating to the debt.
The stable outlook reflects S&P's expectation that production rates
will remain stable near nameplate capacity, and methanol prices
will be supportive.
Natgasoline has issued a $525 million senior secured term loan B
(TLB) to refinance its existing TLB maturing in November 2025 and
for general corporate purposes.
S&P Global Ratings assigned its 'BB-' long-term rating to the
project's debt issuance. S&P also assigned a '2' recovery rating to
the debt.
S&P said, "We assigned a 'BB-' rating to the TLB, as the
transaction's final parameters remain in-line with our assessment
for the preliminary rating.
"The stable outlook reflects our expectation that production rates
will be stable and near nameplate capacity, and methanol prices
will remain supportive. In addition, we expect the project will be
able to manage its natural gas feedstock prices, or partially pass
through rising feedstock costs to customer. Our minimum debt
service coverage ratio (DSCR) of 1.80x, which still supports the
'BB-' rating, occurs in 2032. This coincides with a period of major
maintenance.
"We could take a negative rating action if Natgasoline's margin
deteriorates materially, such that the DSCR falls to 1.75x and
remains at that level. This could stem from depressed commodity
prices or the project's inability to pass through rising feedstock
costs to its customers. In addition, the DSCR could deteriorate due
to operational issues that lead to a significant increase in
operating costs or require a plant shutdown for an extended period,
affecting production volume.
"We would consider an upgrade if we believed that, given the
volatile nature of methanol prices, Natgasoline could consistently
achieve debt service coverage exceeding 3.0x in all years of our
base-case projection, including the refinancing period. This could
stem from substantial improvements in methanol prices in the market
or the acquisition of long-term offtake contracts that provide
price and volume certainty, but absent any material increase in
natural gas feedstock prices."
NEW FORTRESS: Fitch Lowers IDR to 'B-', On Watch Negative
---------------------------------------------------------
vFitch Ratings has downgraded New Fortress Energy Inc.'s (NFE)
Long-Term Issuer Default Rating (IDR) to 'B-' from 'B' and has
maintained the Rating Watch Negative. Fitch has also downgraded
NFE's $2.7 billion 12% new senior secured notes due 2029 issued by
NFE Financing LLC, and Term Loan B to 'B-' with a Recovery Rating
of 'RR4' from 'B'/'RR4', and both the senior secured 6.50% notes
due September 2026 and the senior secured 8.75% notes due March
2029 to 'CCC+'/RR5' from 'B-'/'RR5'.
The downgrades reflects weak recent and expected short-term
interest coverage and high leverage.
The Rating Watch Negative reflects the execution risk around
potential liquidity enhancing events that may occur mid-2025. Fitch
views the recent announcement of the Jamaica asset sale agreement
as a positive development.
Key Rating Drivers
Execution Risk Remains Elevated: The gas supply contract in Puerto
Rico will come due in June 2025. Similarly, the two primary assets
in Brazil, CELBA2 and the Portocem power plants, are still under
construction. Puerto Rico and Brazil account for over 80% of NFE's
EBITDA in 2025-2027. There is very limited scope for construction
delays or cost overruns in Brazil or underperformance in Puerto
Rico. Under Fitch's assumptions, FCF is negative over the next two
years. Expansion in Puerto Rico and timely commencement of
operations in Brazil are key to generating additional liquidity and
improve NFE's financial profile.
High Leverage from Debt-Funded Development: Fitch-calculated
leverage is expected to average 8.8x through 2026. Leverage remains
high pro-forma for the Jamaica asset sale, due to debt funded capex
to develop the company's FLNG2 liquefaction unit and complete the
projects in Brazil. Leverage is expected to improve starting 2027,
as operations in Brazil and Mexico ramp up along with growth in
natural gas sales in Puerto Rico. Fitch's assumptions are more
conservative than management's, embedding slower expansion in
Puerto Rico and Brazil.
Refinancing and Liquidity Risk: Applied proportionately, proceeds
from the sale of the Jamaica assets will pay down about 10% of the
$511 million 6.5% senior secured notes due September 2026. If these
2026 maturities are not paid by July 31, 2026, 60 days before their
maturity, it would trigger around $2.1 billion of additional
springing maturities. Fitch believes FEMA payments and higher sales
in Puerto Rico, each unpredictable, are required to pay off the
2026 maturities. High interest expenses, averaging over $900
million in each of the next three years, further constrain
financial flexibility. Fitch calculates EBITDA interest coverage as
approximately 1.0x in both 2025 and 2026.
Commodity Price Linkage: In Puerto Rico, NFE's gas supply contracts
are indexed to regional diesel prices. Fitch calculates diesel
prices in 2024 were approximately 11% lower than in 2023, and YTD
prices in 2025 are lower by another 3.5%. Higher LNG prices could
result from global macro conditions, and would compress margins if
diesel prices do not increase similarly. NFE's current supply
agreement of up to 80 tbtu/year, expiring in June 2025 of natural
gas in Puerto Rico lacks take-or-pay provisions, exposing it to
demand volatility.
Improving Contract Mix: NFE primarily derives margin from its
terminals, which supply natural gas. Shifting away from open market
LNG sales should reduce cash flow volatility, with contributions
from this segment expected to decline below 10% of EBITDA from
2025. Brazilian contracts over 15-year terms with take-or-pay
features or capacity payments (Portocem). The portfolio faces
considerable concentration risk. Fitch projects over 50% of EBITDA
will come from Puerto Rico, where ongoing contracts are linked to
prevailing regional diesel prices. Brazil and Mexico are seen as
politically and economically volatile, offsetting the drive for
cleaner fuels.
Peer Analysis
NFE is closest in operations and geographical focus to LNG producer
Venture Global LNG Inc (VGLNG, B+/Stable). NFE's cash flows are
supported by the sale of LNG and power to utilities, power
generators and industrial customers. VGLNG's operations are more
specialized as an LNG producer. Fitch views NFE's operations in
Latin and South America as having greater operating risk, compared
to VGLNG's somewhat more proven natural gas liquefaction
operations.
Both entities have considerable exposure to commodity prices,
though VGLNG's projects are anchored by long-term contracts to
largely creditworthy customers. NFE's contracts are shorter in
term, have a lower portion of take-or-pay features their
counterparty credit quality is lower. VGLNG faces greater
construction and development risk with three large projections
under various stages of completion compared to FLNG 2 unit as the
largest near-term project under construction, though Fitch expects
the company to develop additional infrastructure, especially in
Brazil.
Fitch views the liquidity at NFE to be constrained despite the
recent refinancing. The majority of NFE's subsidiaries are
encumbered but the company has limited asset level debt at its
terminals. VGLNG's two operating projects have substantial
leverage, which could limit cashflows at the parent if merchant
prices were weaker. Leverage for NFE under the Fitch rating case is
expected to be weak in 2025-2026, averaging around 8.8x compared to
around 6.0x for VGLNG over the same period.
NFE's weaker operating profile, high leverage and lower interest
coverage, and constrained liquidity account for its lower ratings.
Key Assumptions
- LNG market spreads informed by Fitch's price deck: $5.00/mcf in
2026, $4.25/mcf in 2027;
- Natural gas at Henry Hub (HH) as per Fitch's price deck:
$3.00/mcf in 2026, and $2.75/mcf in 2027;
- Proceeds of approximately $400 million (total) from the FEMA
claim received partially in 2025 and partially in 2026;
- Jamaica transaction closes as per currently announced terms. Net
proceeds from the sale applied proportionately to all the secured
corporate debt;
- In Brazil, Fitch conservatively assumes CELBA2 project completed
by end of 2025 and Portocem by end of 2026;
- Construction for FLNG2 completed on time and per Fitch's current
budget estimate;
- No dividends;
- Interest expense reflecting a base rate as per the Fitch's
"Global Economic Outlook" for 2025, and kept constant thereafter;
- Additional growth capital spending largely funded with retained
cash and debt.
Recovery Analysis
For Recovery Ratings, Fitch assumes default could occur during
construction of the Brazilian power plants and the FLNG2 asset, and
the reorganization would be impacted by the diverse location of the
terminals. Fitch estimates the company's liquidation value is
greater than its going-concern value.
The assets are in different jurisdictions and are functionally
diverse as well. Under a bankruptcy, it is more likely that the
assets would be sold to various parties that have the requisite
expertise. Additionally, each asset is pledged as collateral across
different debt classes. For all the above reasons Fitch is using a
liquidation value approach instead of the going-concern approach.
Terminal assets were valued based on haircuts to third-party
valuations provided by the company. FLNG assets were valued based
on their production capability (1.4 mtpa), the cost of building
similar assets and percentage of completion. The estimated
liquidation value was around $3.6 billion, pro forma for the sale
of the Jamaica assets.
The liquidation value was about 20% higher than the going-concern
value, calculated with a 5.0x EBITDA multiple. There have been
limited bankruptcies in the midstream sector. Two recent gathering
and processing bankruptcies indicate an EBITDA multiple between
5.0x and 7.0x, by Fitch estimations. Fitch's October 2024
bankruptcy case study report, "Energy, Power and Commodities
Bankruptcy Enterprise Values and Creditor Recoveries," found a
median enterprise valuation exit multiple of 5.3x across 51 energy
cases (sufficient data to estimate was 5.3x), with a wide range
observed.
Fitch calculated administrative claims to be 10%, which is the
standard assumption. The outcome is a 'B-'/'RR4' rating for the TL
B and the new 12% notes maturing 2029. The legacy 6.5% notes
maturing September 2026 and 8.75% notes maturing March 2029 have
lower collateral coverage and receive a 'CCC+'/'RR5' rating, after
applying the country specific considerations.
On a normalized run-rate basis, Fitch believes almost all the
revenues will come from outside U.S., from countries where Fitch
does not assign an uplift to the debt based on the recovery
profile. Per Fitch's "Corporates Recovery Ratings and Instrument
Ratings Criteria," secured debt can be notched up to 'RR1'/'+3'
from the IDR; however, the instrument ratings have been capped at
'RR4' due to Fitch's "Country Specific Treatment of Recovery Rating
Criteria."
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to proactively address the 2026 maturity, and revolver
payments;
- Failure to execute the Jamaica asset sale in a timely manner;
- Expectation of EBITDA interest coverage sustained below 1.2x;
- Fitch calculated EBITDA leverage expected to be above 7.0x on a
sustained basis;
- Unfavorable result in the Puerto Rico contract negotiations, or
weak execution on new projects such as delay in completion of
CLEBA2 beyond 2025, or Portocem power plant beyond 2026, or cost
overruns at FLNG 2.
Factors that Could, Individually or Collectively, Lead to Resolving
the Negative Outlook
- The Negative Watch could be revised if the revolver maturities in
2025, and senior secured debt maturity in 2026 are refinanced in a
timely manner, and interest coverage is sustained above 1.2x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Expectation of EBITDA interest coverage above 1.5x and Fitch
calculated EBITDA leverage below 6.5x on a sustained basis;
- Demonstrated liquidity sources to pay down the remaining portion
of the 2026 notes and sufficiently pay down the revolver;
- Stronger contractual structures, including reduced commodity
price linkages, long-term, fixed-price contracts and improving
counterparty profile.
Liquidity and Debt Structure
As of Dec. 31, 2024, NFE held about $493 million in unrestricted
cash and about $473 million in restricted cash on its balance sheet
to fund a thermal plant project.
As of Dec. 31, 2024, the $1.0 billion revolver was fully drawn,
with, $270 million due in September 2025, $100 million maturing in
April 2026 and the remaining $630 million due in October 2027. The
revolver, with TL B ($1.3 billion) and TL A ($350 million), must be
settled 60 days before the 2026 notes, if those notes are not
refinanced before maturity.
Other near-term maturities include $511 million of legacy 6.75%
senior secured notes due in September 2026. The $350 million TL A
is due in July 2027, the $1.3 billion TL B is due October 2028. No
interest or principal payments on the $736 million Portocem
debentures are due until September 2027, after which semi-annual
payments will continue until maturity in September 2040.
Issuer Profile
New Fortress Energy LLC is a gas-to-power energy infrastructure
company. The company spans the production and delivery chain from
natural gas procurement and LNG production to logistics, shipping,
terminals and conversion or development of natural gas-fired
generation.
Summary of Financial Adjustments
Consolidated leverage for NFE includes asset level debt and the
Energos Formation Transaction obligations. Under Fitch's Corporate
Criteria, the Energos lease obligations are considered long-term
obligations and the reported lease liability is treated as debt.
Fitch uses cash interest paid in its calculation for EBITDA
interest coverage. Capitalized interest is added back as cash.
The preferred stock at GMLP is given a 50% equity credit due to its
perpetuality and cumulative nature of the dividends and interest.
NFE's recently issued Series A Convertible Preferred Stock is
treated as 100% debt as its dividend rate increases by 2% until the
company pays of all previously accrued but unpaid dividends.
Fitch's EBITDA is calculated by removing one-time items such as
contract novations and asset sales.
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
NFE has an ESG relevance score of '4' for Exposure to Environmental
Impacts due to potential operational challenges related to extreme
weather events in its operating regions. This has a negative impact
on the credit profile and is relevant to the rating in conjunction
with other factors.
NFE has an ESG relevance score of '4' for Governance Structure due
to its concentrated ownership. This has a negative impact on the
credit profile and is relevant to the rating in conjunction with
other factors.
NFE has an ESG relevance score of '4' for Financial Transparency
due to the level of detail and transparency in its financial
disclosure that is weaker than other industry peers. This has a
negative impact on the credit profile and is relevant to the rating
in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
New Fortress
Energy Inc. LT IDR B- Downgrade B
senior secured LT B- Downgrade RR4 B
senior secured LT CCC+ Downgrade RR5 B-
NFE Financing LLC
senior secured LT B- Downgrade RR4 B
NEW LEDA LANES: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The U.S. Trustee for Region 1 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of New Leda Lanes, Inc.
About New Leda Lanes Inc.
New Leda Lanes Inc., doing business as Leda Lanes, Kegler's Den,
and Leda's Light House, is a family-owned candlepin bowling center
located at 340 Amherst Street, Nashua, N.H. It is also known for
hosting local tournaments and supporting the Special Olympics New
Hampshire's State Bowling Tournament.
New Leda Lanes sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.H. Case No. 25-10129) on March 3, 2025.
In its petition, the Debtor reported between $100,000 and $500,000
in assets and between $1 million and $10 million in liabilities.
The Debtor is represented by:
William J. Amann, Esq.
Amann Burnett, PLLC
757 Chestnut Street
Manchester, NH 03104
Tel: 603-696-5401
Email: wamann@amburlaw.com
NIKOLA CORP: Comm. Taps FTI Consulting as Financial Advisor
-----------------------------------------------------------
The official committee of unsecured creditors of Nikola Corporation
seeks approval from the U.S. Bankruptcy Court for the District of
Delaware to hire FTI Consulting, Inc. as financial advisors.
The firm's services include:
-- assistance in the review of financial related disclosures
required by the Court, including the Schedules of Assets and
Liabilities, the Statement of Financial Affairs and Monthly
Operating Reports;
-- assistance in the preparation of analyses required to assess
any proposed Debtor-In-Possession (DIP) financing;
-- assistance with the assessment of the Debtors' cash management
system and evaluation of intercompany transactions, including,
among others, intercompany transactions between the Debtors and
their non-Debtor affiliates;
-- assistance in the research and evaluation of industry trends
and potential impact on the sale of the Debtors' business and/or
assets;
-- assistance with analyzing entity-level value waterfalls and
potential recoveries with respect to any proposed plan of
reorganization;
-- assistance with the review of the Debtors' potential
disposition or liquidation of both core and non-core assets;
-- assistance with the review of the Debtors' cost/benefit
analysis with respect to the affirmation or rejection of various
executory contracts and leases;
-- assistance with review of any tax issues associated with, but
not limited to, claims/stock trading, preservation of net operating
losses, refunds due to the Debtors, plans of liquidation, and asset
sales;
-- assistance in the review of the claims reconciliation and
estimation process;
-- assistance in the review of financial information prepared by
the Debtors, including, but not limited to, liquidity, cash flow
projections and budgets, cash receipts and disbursement analysis,
asset and liability analysis, and the economic analysis of proposed
transactions for which Court approval is sought;
-- attendance at meetings and assistance in discussions with the
Debtors, potential investors, banks, the Committee and any other
official committees organized in these chapter 11 proceedings, the
U.S. Trustee, other parties in interest and professionals hired by
the same, as requested;
-- assistance in the review and/or preparation of information and
analysis necessary for the confirmation of a plan and related
disclosure statement in these chapter 11 proceedings;
-- assistance in the evaluation and analysis of avoidance
actions, including fraudulent conveyances and preferential
transfers;
-- assistance with the review of any key employee incentive,
management incentive, and any key employee retention and other
employee benefit programs proposed by the Debtors;
-- assistance in the prosecution of Committee
responses/objections to the Debtors' motions, including attendance
at depositions and provision of expert reports/testimony on case
issues as required by the Committee; and
-- render such other general business consulting or such other
assistance as the Committee or its counsel may deem necessary that
are consistent with the role of a financial advisor and not
duplicative of services provided by the Committee's other
professionals in these Chapter 11 Cases.
The firm will be paid at these rates:
Senior Managing Director $1,185 to $1,525 per hour
Directors/Senior Directors/
Managing Directors $890 - $1,155 per hour
Consultants/Senior Consultants $485 - $820 per hour
Administrative/Paraprofessionals $195 - $385 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael Cordasco, a senior managing director at FTI, disclosed in a
court filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Michael Cordasco
FTI Consulting, Inc.
1166 Avenue of the Americas, 15th Floor
New York, NY 10036
Telephone: (212) 247-1010
Email: michael.cordasco@fticonsulting.com
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.
NIKOLA CORP: Committee Taps Ducera as Investment Banker
-------------------------------------------------------
The official committee of unsecured creditors of Nikola Corporation
seeks approval from the U.S. Bankruptcy Court for the District of
Delaware to hire Ducera Securities LLC as investment banker.
The firm will render these services:
a) General Advisory and Investment Banking Services;
Restructuring Services. If requested by the Committee (including
through the Committee's lead counsel, Morrison & Foerster, Ducera
shall:
(1) familiarize itself with the Debtors' business,
operations, financial condition, and capital structure;
(2) assist with the assessment of the Debtors' liquidity
and uses of liquidity and with identifying potential sources of
financing in connection with future transactions;
(3) analyze various Restructuring scenarios and the
potential impact of these scenarios on the Existing Obligations of
the Debtors and recoveries of those stakeholders impacted by the
Restructuring;
(4) provide investment banking and financial advice and
assistance to the Committee in connection with any Restructuring
proposals advanced by the Committee, the Debtors or any other
parties or stakeholders;
(5) provide investment banking and financial advice and
assistance to the Committee in structuring any new securities to be
issued by the Debtors in connection with a Restructuring;
(6) provide investment banking and financial advice and
assistance to the Committee in connection with any proposed sale of
the Debtors' assets (including any 363 Sale Transaction) or any
financing transactions proposed to be pursued by the Debtors
(including any debtor in possession financing transactions);
(7) assist the Committee and/or participate in negotiations
with the Debtors, the Committee and any other entities or groups
affected by the Restructuring;
(8) participate in hearings before the Court and provide
expert testimony and litigation support services, as requested from
time to time by the Committee, regarding any of the matters to
which Ducera is providing services; and
(9) provide such other advisory and investment banking
services as may be agreed upon by Ducera and the Committee.
b) To the fullest extent permitted by applicable laws and
rules, work performed by Ducera as part of the engagement,
including, without limitation, any communications with Counsel and
the Committee, and any advice, analysis, or reports Ducera may
prepare, shall be covered by attorney work-product doctrine, the
attorney-client privilege, and all other applicable privileges.
Any reports or analyses generated by Ducera are not the property of
the Debtors or their estates, and such reports or analyses are the
property of the Committee (and not any of its Members
individually).
The firm will be paid as follows:
(a) A nonrefundable monthly cash fee of $125,000, payable in
advance (the "Monthly Advisory Fee") or as otherwise set forth in a
Court order. The Monthly Advisory Fee shall commence as of the
Effective Date. The first Monthly Advisory Fee and any additional
Monthly Advisory Fees accrued from the Effective Date through the
entry of an order of the Court approving Ducera's retention by the
Committee shall be payable upon the entry of such order, subject to
any other applicable orders of the Court. The Monthly Advisory Fee
shall be payable until the earlier of: (1) the consummation of a
Restructuring or (2) the termination of Ducera's services by the
Committee; plus,
(b) A restructuring fee of $1,650,000 that shall be due and
payable upon consummation of any Restructuring (the "Restructuring
Fee").
(c) In addition to the fees set forth in this Paragraph 14,
the Debtors shall, subject to approval of the Court, reimburse
Ducera at cost for all reasonable and documented out-of-pocket
expenses incurred in connection with the services provided to the
Committee, including, but not limited to, reasonable and documented
travel and transportation expenses, third-party research and
telecommunication expenses, printing costs, courier and other
shipping and mailing costs, as well as reasonable and documented
expenses of Ducera's external legal counsel and other expenses
incurred in performing Ducera's services during the Term on or
after the Effective Date of the Engagement Letter; provided,
however, that this subparagraph 14(c) shall in no way affect the
indemnification provisions set forth in Annex A of the Engagement
Letter. All payments due under this Application shall be made in
U.S. dollars in immediately available funds, free and clear of any
set-off, claim, and applicable taxes (with appropriate gross-up for
any taxes withheld).
(d) The Committee and Ducera acknowledge and agree that (1)
hours worked; (2) the results achieved; and (3) the ultimate
benefit to the Committee of the work performed, in each case, in
connection with this engagement, may be variable, and that the
parties have taken such factors into account in setting the fees
hereunder. To the extent further services are requested by the
Committee in connection with the Chapter 11 Cases, the Committee
and Ducera agree to negotiate in good faith a reasonable scope of
services and fee structure in connection with any such further
services provided by Ducera, depending on the size, scope, and
nature of the services to be provided.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael Genereux, a managing director at Ducera Partners, disclosed
in a court filing that the firm is a "disinterested person" as
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Michael Genereux
Ducera Partners, LLC
11 Times Square, 36th Floor
New York, NY 10036
Telephone: (212) 671-9700
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.
NIKOLA CORP: Committee Taps Morris James LLP as Co-Counsel
----------------------------------------------------------
The official committee of unsecured creditors of Nikola Corporation
seeks approval from the U.S. Bankruptcy Court for the District of
Delaware to hire Morris James LLP as co-counsel.
The firm's services include:
a. providing legal advice and assistance to the Committee in
its consultations with the Debtors relative to the Debtors'
administration of its reorganization;
b. reviewing and analyzing all applications, motions, orders,
statements of operations and schedules filed with the Court by the
Debtors or third parties, advising the Committee as to their
propriety, and, after consultation with the Committee, taking
appropriate action;
c. preparing necessary applications, motions, answers, orders,
reports, and other legal papers on behalf of the Committee;
d. representing the Committee at hearings held before the
Court and communicating with the Committee regarding the issues
raised, as well as the decisions of the Court; and
e. performing other legal services for the Committee which may
be reasonably required in this proceeding.
The principal attorneys and paralegals presently expected to
represent the Committee at these rates:
Eric J. Monzo, Partner $905 per hour
Brya M. Keilson, Partner $850 per hour
Siena B. Cerra, Associate $425 per hour
Stephanie Lisko, Paralegal $385 per hour
Douglas J. Depta, Paralegal $385 per hour
The firm also provided the following in response to the request for
additional information set forth in Section D of the Revised U.S.
Trustee Guidelines:
a. Morris James did not agree to a variation of its standard
or customary billing arrangements for this engagement;
b. None of the professionals included in this engagement have
varied their rate based upon the geographic location of the Chapter
11 Cases; and
c. The Committee retained Morris James on March 4, 2025. The
billing rates for the period prior to this application are the same
as indicated in this application;
d. Morris James anticipates filing a budget at the time it
files its interim fee applications. In accordance with the United
States Trustee Guidelines, the budget may be amended as necessary
to reflect changed circumstances or unanticipated developments.
Eric J. Monzo, Esq., a partner at Morris James 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:
Eric J. Monzo, Esq.
Brya M. Keilson, Esq.
MORRIS JAMES LLP
500 Delaware Avenue, Suite 1500
Wilmington, DE 19801
Tel: (302) 888-6800
Fax: (302) 571-1750
Email: emonzo@morrisjames.com
bkeilson@morrisjames.com
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.
NIKOLA CORP: Committee Taps Morrison & Foerster as Counsel
----------------------------------------------------------
The official committee of unsecured creditors of Nikola Corporation
seeks approval from the U.S. Bankruptcy Court for the District of
Delaware to hire Morrison & Foerster LLP as its counsel.
The firm's services include:
(a) advising the Committee in connection with its powers and
duties under the Bankruptcy Code, the Bankruptcy Rules, and the
Local Rules;
(b) assisting and advising the Committee in its consultation
with the Debtors relative to the administration of these Chapter 11
Cases;
(c) attending meetings and negotiating with the
representatives of the Debtors and other parties in interest;
(d) assisting and advising the Committee in its examination
and analysis of the conduct of the Debtors' affairs;
(e) assisting and advising the Committee in connection with
any sale of the Debtors' assets pursuant to Section 363 of the
Bankruptcy Code;
(f) assisting the Committee in the review, analysis, and
negotiation of any Chapter 11 plan(s) of reorganization or
liquidation that may be filed and assisting the Committee in the
review, analysis, and negotiation of the disclosure statement
accompanying any such plan(s);
(g) taking all necessary action to protect and preserve the
interests of the Committee, including: (i) possible prosecution of
actions on its behalf; (ii) if appropriate, negotiations concerning
all litigation in which the Debtors are involved; and (iii) if
appropriate, review and analysis of claims filed against the
Debtors' estates;
(h) generally preparing on behalf of the Committee all
necessary motions, applications, answers, orders, reports, replies,
responses, and papers in support of positions taken by the
Committee;
(i) appearing, as appropriate, before this Court, the
appellate courts, and the U.S. Trustee, and protecting the
interests of the Committee before those courts and before the U.S.
Trustee; and
(j) performing all other necessary legal services in these
Chapter 11 Cases as may be directed by the Committee.
Morrison & Foerster's standard hourly rates are:
Partners and Senior Of Counsel $1,475 to $2,475
Of Counsel $1,250 to $1,925
Associates $795 to $1,330
Paraprofessionals $390 to $645
The following is provided in response to the request for additional
information set forth in Paragraph D.1. of the U.S. Trustee
Guidelines:
Question 1: Did you agree to any variations from, or
alternatives to, your standard or customary billing arrangements
for this engagement?
Response: No.
Question 2: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question 3: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Response: Morrison & Foerster did not represent the Committee
prior to these Chapter 11 Cases.
Question: 4 Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response: The Committee and Morrison & Foerster expect to
develop a prospective budget and staffing plan to comply with the
U.S. Trustee's requests for information and additional disclosures,
and any other orders of the Court, recognizing that in the course
of these Chapter 11 Cases there may be unforeseeable fees and
expenses that will need to be addressed by the Committee and
Morrison & Foerster.
As disclosed in the court filings, Morrison & Foerster is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code, as required by Section 328 of the Bankruptcy Code,
and does not hold or represent an interest adverse to the Debtors,
their estates, their creditors, or the Committee and the members
thereof.
The firm can be reached through:
Lorenzo Marinuzzi, Esq.
Morrison & Foerster LLP
250 West 55th Street
New York, NY 10019
Telephone: (212) 468-8000
Facsimile: (212) 468-7900
Email: lmarinuzzi@mofo.com
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.
NLC PRODUCTS: Section 341(a) Meeting of Creditors on May 13
-----------------------------------------------------------
On April 14, 2025, NLC Products Inc. filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Eastern District of Arkansas.
According to court filing, the Debtor reports $3,997,628 in
debt owed to 200 and 999 creditors. The petition states funds will
be available to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on May 13,
2025 at 02:00 PM via Tele-Meeting.
About NLC Products Inc.
NLC Products Inc. is a privately held company specializing in niche
catalog and e-commerce retail. Based in Arkansas, it operates a
range of brands across various lifestyle segments, including gifts,
apparel, and specialty merchandise. One of its notable subsidiaries
is SGT GRIT, a brand dedicated to United States Marine Corps-themed
apparel and accessories, which NLC acquired to expand its patriotic
and military-focused offerings.
NLC Products Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Ark. Case No. 25-11264) on April 14,
2025. In its petition, the Debtor reports total assets of
$4,144,606 and total liabilities of $3,997,628.
Honorable Bankruptcy Judge Phyllis M.Jones handles the case.
The Debtor is represented by Kevin P. Keech, Esq. at KEECH LAW
FIRM, PA.
NUEVA VISTA: Hires Michael G. Spector as Legal Counsel
------------------------------------------------------
Nueva Vista 2018 LLC seeks approval from the U.S. Bankruptcy Court
for the Central District of California to hire the Law Offices of
Michael G. Spector as its bankruptcy counsel.
The firm will render these legal services:
(a) prepare pleadings, applications and conduct examinations
incidental to administration;
(b) advise the Debtor with respect to its rights, duties and
powers in the administration of its Chapter 11 case;
(c) advise and assist the Debtor with respect to compliance
with the requirements of the Office of the U.S. Trustee;
(d) advise the Debtor regarding matters of bankruptcy law;
(e) advise and represent the Debtor in connection with all
applications, motions or complaints for adequate protection,
sequestration, relief from stays, appointment of a trustee or
examiner and all other similar matters;
(f) develop the relationship of the status of the Debtor to
the claims of creditors in these proceedings;
(g) advise and assist the Debtor in the formulation and
presentation of a reorganization plan;
(h) represent the Debtor in any necessary adversary
proceedings; and
(i) perform other legal services.
The hourly rates of the firm's attorneys and staff are as follows:
Michael G. Spector, Attorney $490 per hour
Vicki L. Schennum, Of Counsel $460 per hour
Law Clerk $110 per hour
Brittany Porter, Paralegal $100 per hour
Michael Spector, Esq., the proprietor of the Law Offices of Michael
G. Spector, disclosed in a court filing that his firm is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Michael G. Spector, Esq.
Law Offices of Michael G. Spector
2122 N. Broadway
Santa Ana, CA 92706
Telephone: (714) 835-3130
Facsimile: (714) 558-7435
Email: mgspector@aol.com
About Nueva Vista 2018 LLC
Nueva Vista 2018 LLC is a construction company headquartered in
Laguna Beach, California.
Nueva Vista 2018 LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10166) on January 21,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Theodor Albert handles the case.
James Mortensen, Esq. at Socal Law Group, PC represents the Debtor
as counsel.
NXT ENERGY: 2024 Revenue Falls 70% to C$0.64 Million
----------------------------------------------------
NXT Energy Solutions Inc. announced the Company's financial and
operating results for the quarter and year ended December 31, 2024.
Bruce G. Wilcox, CEO of NXT, commented in an operational update on
February 14, 2025, "The positive financial impact of our SFDsurveys
in Africa, Southeast Asia, and South Asia is expected to be
significant for the first quarter, and for full year 2025. NXT is
focused on additional regional market penetration with multiple
customers in each of these three regions."
Key 2024 Financial and Operating Highlights:
* On September 24, 2024 the Company announced that it entered
into a contract with its Strategic Alliance Partner, Synergy E&P
Technologies Limited to provide a repeat SFDsurvey in Africa for an
oil and gas exploration company. The Company mobilized for this
SFDsurvey on December 30, 2024. In January 2025, NXT completed
SFDdata acquisition over 14 flight days for the SFDsurvey in
Africa. NXT's interpretation and recommendations are expected to be
delivered during the second quarter of 2025;
* NXT announced its upcoming Southeast Asia SFDSurvey is
planned to be flown in April 2025;
* NXT was awarded an SFDsurvey in Pakistan, by AL-Haj
Enterprises Private Limited, in the Northern Suleiman Fold Belt, to
commence in Q3-25;
* On August 21, 2024 the Company entered into a contract to
provide a geothermal SFDsurvey to Alberta Geothermal Resource
Recovery Inc;
* NXT completed the Turkish SFDSurvey, delivered the final
results thereof to its Turkish customers and completed the
integration of SFDdata with existing geological and geophysical
data;
* NXT's SFDawarded Best Exploration Technology at the 2024
Gulf Energy Information Excellence Awards;
* NXT was named a finalist for the Energy Transition Award -
Upstream category at the 2024 Annual Platts Global Energy Awards;
* the debentures issued to MCAPM, LP were finalized for a
total of US$2.0 million (approximately CDN$2.7 million);
* the Company received US$900,000 (approximately
CDN$1,227,291) for convertible debentures from Ataraxia Capital, an
affiliate of Synergy under the same terms as the subscription
agreement signed between Ataraxia and NXT in 2023, except for the
conversion price of US$0.24 per common share versus US$0.143 in
2023;
* NXT and HULOOLQ LTD., an Abu Dhabi based startup focused on
"deep tech" disruptive technologies, entered into a sales agency
agreement covering the United Arab Emirates;
* On March 22, 2024 the Company extended its lease on its
aircraft for an additional three years as a capital lease. Under
the terms of the lease, the Company will own the aircraft at the
end of the term;
* NXT surrendered approximately 3,207 square feet, or
approximately 31% of its current office space to its landlord, and
extended its lease on the reduced office space until September 30,
2030
* cash and short-term investments at December 31, 2024 was
approximately $0.73 million;
* net working capital was approximately ($6.68) million at
December 31, 2024 versus approximately ($1.86) million at December
31, 2023;
* the Company recorded SFD-related revenues of approximately
$0.64 million YE-24 versus $2.15 million for YE-23;
* a net loss of $2.80 million was recorded for Q4-24,
including stock-based compensation expense, amortization expense
and remeasurement gain, all totaling approximately $0.39 million;
* a net loss of $9.08 million was recorded for YE-24,
including SBCE, amortization expense and remeasurement loss, all
totaling approximately $2.45 million;
* net loss per common share for Q4-24 was $0.04 per share
(basic) and $0.04 per share (diluted);
* net loss per common share for YE-24 was $0.12 per share
(basic) and $0.12 per share (diluted);
* cash flow used in operating activities was approximately
$1.39 million during Q4-24, compared to $1.47 million used in
Q4-23;
* cash flow used in operating activities was approximately
$3.99 million during YE-24, compared to $4.83 million used in
YE-23;
* general and administrative expenses increased by
approximately $0.28 million (27%) in Q4-24 as compared to Q4-23;
and
* G&A expenses increased by approximately $0.63 million (16%)
in YE-24 as compared to YE-23.
About NXT Energy
NXT Energy Solutions Inc. is a Calgary-based technology company
whose proprietary SFD survey system utilizes quantum-scale sensors
to detect gravity field perturbations in an airborne survey method.
This system can be used both onshore and offshore to remotely
identify areas with exploration potential for traps and reservoirs.
The SFD survey system enables the Company's clients to focus their
hydrocarbon exploration decisions concerning land commitments, data
acquisition expenditures, and prospect prioritization on areas with
the greatest potential. SFD is environmentally friendly and
unaffected by ground security issues or difficult terrain and is
the registered trademark of NXT Energy Solutions Inc. NXT Energy
Solutions provides its clients with an effective and reliable
method to reduce time, costs, and risks related to exploration.
Calgary, Canada-based MNP LLP, the Company's auditor since 2023,
issued a "going concern" qualification in its report dated March
27, 2025, citing that the Company's current cash position is not
expected to be sufficient to meet the Company's obligations and
planned operations for a year beyond the date of auditor's report,
unless additional financing is obtained or new revenue contracts
are completed. This raises substantial doubt about the Company's
ability to continue as a going concern.
OEG BORROWER: Moody's Affirms 'B2' CFR, Outlook Remains Stable
--------------------------------------------------------------
Moody's Ratings has affirmed OEG Borrower, LLC's ("OEG" or "the
company") ratings, including the B2 corporate family rating, B2-PD
probability of default rating and the B2 senior secured bank credit
facility ratings. The outlook remains stable.
The rating affirmations reflect Moody's expectation that OEG will
maintain its strong franchise in the niche segment of country music
entertainment and its recently completed capital projects at Block
21 in Austin, Texas and Category 10 in Nashville, Tennessee will
support solid growth in its revenue and earnings through 2026.
RATINGS RATIONALE
OEG's ratings reflect its high-quality portfolio of experiential
properties, leading market position in country music experiences
and track record of growing its free cash flow. The ratings are
constrained by the company's small size, focus on a niche
entertainment segment, significant asset and geographic
concentration and exposure to consumer discretionary spending and
seasonality.
With the completion of Block 21, a mixed-use venue including a
hotel and live music space and Category 10, an entertainment venue,
Moody's expects OEG to report 20-30% revenue growth in 2025.
However, the potential for a decline in consumer spending because
of a weak macroeconomic environment would slow the growth rate in
income to near the low teens.
OEG's key credit metrics will improve modestly over the next few
quarters, primarily through EBITDA growth. Moody's expects OEG to
maintain sound liquidity to meet its upcoming funding needs. At the
end of 2024, the company had $13 million of cash and there was $59
million of availability on its $80 million revolving credit
facility. The company's $129 million CMBS loan, which is secured by
its Block 21 property and contractually non-recourse to it, matures
in the first quarter of 2026. Moody's believes that OEG will issue
new debt to retire this obligation.
The stable rating outlook reflects Moody's views that OEG's
leverage and coverage ratios will improve through 2026 because of
income growth and a modest reduction in its debt balance. Moody's
also expects that the company will be able to refinance the CMBS
debt because of the quality of the Block 21 property and the
company's earnings outlook.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
OEG's ratings could be upgraded if leverage remains comfortably
below 3x and coverage is consistently above 2.5x while liquidity
remains solid. Additionally, an increase in diversification and
scale would also be a key consideration for an upgrade.
OEG's ratings could be downgraded if leverage remains above 4x and
coverage drops below 1.5x. A deterioration in OEG's liquidity due
to weak operating performance could also result in a downgrade.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
OEG Borrower, LLC (Opry Entertainment Group, OEG), is a leading
live event, entertainment and media platform. Its main properties
include the Grand Ole Opry and Ryman Auditorium concert venues in
Nashville, a portfolio of small-format live music venues and the
mixed-use entertainment center in Austin, Texas, Block 21. Ryman
Hospitality Properties, Inc's (Ryman, Ba3/Stable) and Atairos
Group, Inc. along with its partner NBCUniversal, own 70% and 30% of
OEG's equity, respectively. OEG's revenue was approximately $342
million in 2024.
ONDAS HOLDINGS: 2025 Annual Meeting of Stockholders Set for May 12
------------------------------------------------------------------
The Ondas Holdings Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that its 2025 annual
meeting of stockholders will be held on Monday, May 12, 2025.
The record date for the 2025 Annual Meeting is April 10, 2025.
About Ondas Holdings
Marlborough, Mass.-based Ondas Holdings Inc. provides private
wireless data solutions through its subsidiary, Ondas Networks
Inc., and commercial drone solutions through Ondas Autonomous
Systems Inc. (OAS), which includes wholly owned subsidiaries
American Robotics, Inc. and Airobotics LTD. OAS focuses on the
design, development, and marketing of autonomous drone solutions,
while Ondas Networks specializes in proprietary, software-based
wireless broadband technology for both established and emerging
commercial and government markets. Together, Ondas Networks,
American Robotics, and Airobotics deliver enhanced connectivity,
situational awareness, and data collection capabilities to users in
defense, homeland security, public safety, and other critical
industrial and government sectors.
Somerset, New Jersey-based Rosenberg Rich Baker Berman, P.A., the
Company's auditor since 2018, issued a "going concern"
qualification in its report date March 12, 2025. The report
highlighted that the Company has experienced recurring losses from
operations, negative cash flows from operations and a working
capital deficit as of Dec. 31, 2024.
As of Dec. 31, 2024, Ondas Holdings had $109.62 million in total
assets, $73.68 million in total liabilities, $19.36 million in
redeemable noncontrolling interest, and $16.58 million in total
stockholders' equity.
OPEN ARMS HEALTH: Court Extends Cash Collateral Access to Aug. 15
-----------------------------------------------------------------
Open Arms Health Systems, LLC received another extension from the
U.S. Bankruptcy Court for the Southern District of Ohio to use cash
collateral.
The order signed by Judge Mina Nami Khorrami extended the company's
authority to use cash collateral from Feb. 28 to Aug. 15 or the
date of the entry of an order confirming its Chapter 11 plan,
whichever comes first.
The same order authorized the company to make a monthly payment of
$3,500 to Byline Bank during the interim period.
All other terms and conditions of the final order issued by the
court in December last year remain in effect and are not altered.
About Open Arms Health Systems
Open Arms Health Systems, LLC -- https://www.oaohio.com -- is a
health care business (as defined in 11 U.S.C. Sec. 101(27A)).
Open Arms Health Systems sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ohio. Case No.
24-54305) on October 25, 2024, with $500,000 to $1 million in
assets and $1 million to $10 million in liabilities. Christopher W.
Allison, a member of Open Arms Health Systems, signed the
petition.
Judge Mina Nami Khorrami oversees the case.
The Debtor is represented by:
David M. Whittaker, Esq.
Isaac Wiles
Tel: 614-340-7431
Email: dwhittaker@isaacwiles.com
ORIGINAL MOWBRAY'S: Seeks Continued Cash Collateral Access
----------------------------------------------------------
The Original Mowbray's Tree Service Inc. asked the U.S. Bankruptcy
Court for the Central District of California for authority to
continue using cash collateral until July 18.
The Debtor needs to use cash collateral to pay operating expenses,
professional fees, and secured claims.
PNC Bank is the sole lienholder on the Debtor's cash. The Debtor
was previously authorized to use cash collateral until April 18
under a prior order and stipulation with PNC.
The Debtor contended that PNC is adequately protected because:
1. PNC will continue to receive monthly payments of $150,000.
2. PNC will receive replacement liens on the Debtor's post-petition
revenues and superpriority administrative claims for any decrease
in value. The Debtor reports generating positive cash flow
post-petition and projects to essentially breakeven over the next
few weeks before lender payments and professional fees.
3. Operating the business maximizes the overall value of the Debtor
and its assets, protecting all creditors, including PNC.
A court hearing is set for April 22.
About The Original Mowbray's Tree
Service
Original Mowbray's Tree Service Inc., doing business as Mowbray's
Tree Service, is a family owned and operated business committed to
providing its client-partners with solution to their vegetation
management needs. It offers hazard tree mitigation, integrated
vegetation management, mechanized tree removal, emergency
response,
crane services, and green waste & debris management.
Original Mowbray's Tree Service sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12674) on
Oct. 18, 2024, with $10 million to $50 million in both assets and
liabilities. Brian Weiss, chief restructuring officer, signed the
petition.
Judge Theodor Albert oversees the case.
The Debtor tapped Raines Feldman Littrell, LLP as general
bankruptcy counsel; Force Ten Partners, LLC as restructuring
advisor; and Grobstein Teeple, LLP as financial advisor.
PNC Bank, as secured creditor, is represented by:
Michael B. Lubic, Esq.
K&L Gates, LLP
10100 Santa Monica Blvd., 8th Floor
Los Angeles, CA 90067
+1.310.552.5000
+1.310.552.5030
Email: michael.lubic@klgates.com
OUTLOOK THERAPEUTICS: Grants $237,500 Retention Bonus to CFO
------------------------------------------------------------
The Compensation Committee of Outlook Therapeutics, Inc.'s Board of
Directors has authorized a retention incentive for Lawrence A.
Kenyon, who serves as the Company's chief financial officer and
interim chief executive officer, in the amount of $237,500,
pursuant to a retention bonus letter. This retention incentive is
payable on Dec. 31, 2025, subject to Mr. Kenyon's continuing
service with the Company through that date.
If a "Qualifying Termination" occurs before Dec. 31, 2025, and
subject to Mr. Kenyon's execution of a release of claims in favor
of the Company, he will be entitled to receive his retention bonus,
less applicable deductions and withholdings, within 30 days of the
termination date. For this purpose, (i) "Cause" means what is
defined in the Company's 2024 Equity Incentive Plan, and (ii)
"Qualifying Termination" means an involuntary termination of Mr.
Kenyon's employment with the Company other than for Cause (and not
due to his death or disability). According to the Retention Bonus
Letter, Mr. Kenyon had the choice to receive stock options instead
of a cash bonus but chose the cash option.
About Outlook Therapeutics
Headquartered in Iselin, New Jersey, Outlook Therapeutics --
http://www.outlooktherapeutics.com-- is a biopharmaceutical
company focused on the development and commercialization of
ONS-5010 / LYTENAVA (bevacizumab-vikg; bevacizumab gamma), for the
treatment of retina diseases, including wet AMD. LYTENAVA
(bevacizumab gamma) is the first ophthalmic formulation of
bevacizumab to receive European Commission and MHRA Marketing
Authorization for the treatment of wet AMD. Outlook Therapeutics
is working to initiate its commercial launch of LYTENAVA
(bevacizumab gamma) in the EU and the UK as a treatment for wet
AMD, expected in the second quarter of calendar 2025. In the
United States, ONS-5010 / LYTENAVA is investigational, is being
evaluated in an ongoing non-inferiority study for the treatment of
wet AMD, and if successful, the data may be sufficient for Outlook
to resubmit a BLA to the FDA in the United States. If approved in
the United States, ONS-5010/LYTENAVA, would be the first approved
ophthalmic formulation of bevacizumab for use in retinal
indications, including wet AMD.
Philadelphia, Pennsylvania-based KPMG LLP, the Company's auditor
since 2015, issued a "going concern" qualification in its report
dated Dec. 27, 2024, citing that the Company has incurred recurring
losses from operations and negative cash flows from operations and
has an accumulated deficit, that raise substantial doubt about its
ability to continue as a going concern.
The Company recorded net losses of $75.4 million and $59.0 million
for the years ended Sept. 30, 2024 and 2023, respectively. The
Company stated that its success largely relies on its ability to
generate revenue from the sales of ONS-5010/LYTENAVA, which has
been approved for treating wet AMD in both the EU and the UK.
The Company has not yet generated revenue from product sales and
has incurred net losses along with negative cash flows from its
operations since its inception. As of Dec. 31, 2024, the Company
has financed nearly all of its operations with $532.6 million in
net proceeds from the sale and issuance of equity securities, debt
securities, and borrowings under debt facilities. Additionally,
the Company has received a total of $29.0 million from emerging
markets collaboration and licensing agreements related to its
inactive biosimilar development programs.
P3 HEALTH: Net Loss Widens to $310 Million in 2024
--------------------------------------------------
P3 Health Partners Inc. filed with the U.S. Securities and Exchange
Commission its Annual Report on Form 10-K for the year ended
December 31, 2024.
According to the Company, it has experienced losses since its
inception. "For the year ended December 31, 2024, we incurred net
losses of $310.4 million, compared to a net loss of $186.4 million
in 2023. As of December 31, 2024, we had an accumulated deficit of
$503.2 million. We expect to continue to incur net losses,
comprehensive losses, and negative cash flows from operating
activities in accordance with our operating plan. We expect that
our operating expenses will continue to increase as we grow our
business, build relationships with physician partners and payors,
develop new services and comply with the requirements associated
with being a public company. Since our inception, we have financed
our operations primarily through cash we obtained as a result of
the Business Combinations, private placements of equity securities,
issuances of promissory notes, payments received from various
payors, borrowings under the Term Loan Facility and the disposition
of certain of our Florida assets. We may not succeed in
sufficiently increasing our revenue to offset these expenses.
Consequently, we may not be able to achieve and maintain
profitability for the current or any future fiscal year. We may
never be able to generate sufficient revenue to achieve or sustain
profitability and our recent and historical growth should not be
considered indicative of our future performance."
Las Vegas, Nev.-based BDO USA, P.C., the Company's auditor since
2021, issued a "going concern" qualification in its report dated
Mar. 27, 2025, attached to the Company's Annual Report on Form 10-K
for the year ended Dec. 25, 2024, citing that the Company has
suffered recurring losses from operations and has working capital
deficiencies that raise substantial doubt about its ability to
continue as a going concern.
"We continue to explore raising additional capital through a
combination of debt financing and equity issuances and sales of
assets. As substantial doubt about our ability to continue as a
going concern exists, our ability to finance our operations through
the sale and issuance of debt or equity securities or through bank
or other financing could be impaired and there is no assurance that
sources of financing will be available on a timely basis, or on
satisfactory terms, or at all. If we are unable to raise additional
capital or generate cash flows necessary to fund our operations or
refinance our indebtedness, we will need to curtail planned
activities, discontinue certain operations, or sell certain assets,
which could materially and adversely affect our business, financial
condition, results of operations, and prospects," the Company
concluded.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/bdeyuv2d
About P3 Health Partners
Henderson, Nev.-based P3 Health Partners Inc is a patient-centered
and physician-led population health management company and, for
accounting purposes, the successor to P3 Health Group Holdings, LLC
and its subsidiaries after the consummation of a series of business
combinations in December 2021 with Foresight Acquisition Corp. As
the sole manager of P3 LLC, P3 operates and controls all of the
business and affairs of P3 LLC and P3's only assets are equity
interests in P3 LLC.
As of Dec. 31, 2024, the Company had $783.4 million in total
assets, $633.9 million in total liabilities, $73.6 million in
redeemable non-controlling interest and a total stockholders'
equity of $75.9 million.
PASADENA PERFORMANCE: S&P Rates $950MM Secured Term Loan B 'BB-'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term rating and '1+'
recovery rating to Pasadena Performance Products LLC's (PPP or the
project) $950 million senior secured term loan B (TLB) and a $200
million revolving credit facility (RCF).
The stable outlook reflects S&P's expectation that the plant will
operate at about a 90% availability factor, and the project will
have sufficient liquidity to fully cover its debt service
obligations even during a market downturn.
PPP operates an alkylate production facility adjacent to the
Houston Ship Channel. PPP is privately owned by Energy Capital
Partners, through ECP Fund IV. The facility uses low-cost natural
gas liquid-derived feedstocks, primarily ethylene, to produce
alkylate, a gasoline additive that improves octane ratings. PPP
reached a final investment decision in November 2019 and achieved
steady-state operations in mid-January 2024. Through ongoing
debottlenecking efforts, the facility produced more than 40,000
barrels per day (bpd) in December 2024. The project is partially
contracted by five- to 10-year synthetic tolling contracts.
S&P said, "We assigned a 'BB-' rating to the TLB and RCF because
transaction structure remains in line with our assessment for the
preliminary rating. The final TLB amount is $950 million, a $50
million upsize from our assumption for the preliminary rating.
Despite the additional debt, our base-case metrics remain in line
with the preliminary rating mapping during both contracted and
merchant phases of the project. We forecast the leverage-based
excess cash flow sweep will offset the additional debt during
initial TLB period.
"In addition, the project has appointed an independent director at
the Pasadena Intermediate Holdings LLC level. Bankruptcy matters
will require a vote from this independent director. In our view,
the appointment of this independent director meets our definition
of an anti-filing mechanism, and the project rating is delinked
from the creditworthiness of its sponsor.
"Our assessments of other parts of the operations phase are
unchanged from our preliminary research update.
"The stable outlook reflects our view that the project will meet
our base-case expectation of operating at an availability factor of
at least 90% of current capacity, producing an average of about
38,700 bpd of alkylate. We expect the project's debt service
coverage ratio (DSCR) will remain above a minimum of 2.31x. In
addition, we believe the project will have sufficient liquidity to
fully cover its debt service obligations even during a market
downturn.
"We could take a negative rating action if the project demonstrates
weaker-than-expected operating stability, as evidenced by extended
outages and/or sustained low availability. In addition, we could
take a negative rating action if the project's ability to withstand
adverse economic conditions weakens such that forecast gross margin
is likely to deteriorate. This could result from lower gasoline
demand, heightened feedstock prices, or both.
"Although unlikely, we could take a positive rating action if PPP
can significantly extend contract terms or increase its contracted
volume with creditworthy counterparties, such that its future
operating cash flow stability improves, lowering the project's risk
profile."
PEACOCK INTERMEDIATE: S&P Lowers ICR to 'CCC+', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on
California-based technical packaging and protective case
manufacturer Pelican Intermediate Holding II L.P. (Pelican) and its
rating on its first-lien term loan to 'CCC+' from 'B-'. S&P's
recovery ratings are unchanged at '3' (rounded estimate: 50%).
S&P said, "The negative outlook indicates we could lower our rating
on the company over the next 12 months if we believe it likely will
face a liquidity crunch or pursue a restructuring that we view as
distressed.
"We believe Pelican's consistent free cash outflow indicates its
capital structure is unsustainable. As selling, general, and
administrative (SG&A) costs and net working capital increase, we
forecast the company's growth strategy will cause S&P Global
Ratings-adjusted FOCF to be negative for a fourth consecutive year.
If successful, this strategy will increase EBITDA interest coverage
and decrease debt to EBITDA. Price increases and operating
efficiencies expanded EBITDA and reduced leverage again in 2024.
However, we believe the persistent cash flow deficit indicates that
the capital structure and interest cost are too onerous.
"We view Pelican as dependent on favorable business conditions. If
demand underperforms our expectations, we believe the company will
scale back growth investments in working capital and SG&A. While
margins could be lower in the first half of 2025, we forecast
improvement in the second half. However, the company risks making
investments for demand that does not materialize particularly in
the context of an uncertain economic environment."
Calibration of investment is unlikely to improve cash flow. Pelican
has flexibility to cut capital expenditure (capex) for its
biothermal segment, much of which will go to expanding its fleet of
rental cases. It could also spend less on digital marketing for its
Pelican Products segment. If these expenditures are cut, revenue
will likely underperform our forecast, liming the cash flow
benefit.
Tariffs complicate Pelican's growth potential. The company imports
a limited share of its raw materials, components, and finished
goods into the U.S., so S&P anticipates modest gross margin
pressure. Additionally, some competitors produce outside the U.S.,
so Pelican will likely benefit from pockets of increased market
share. That said, economic activity and consumer sentiment are
likely to be softer in 2025, weighing on demand. Businesses are
likely to scale back on investments while consumers spend less on
premium products, including Pelican's offerings.
S&P said, "A heightened level of uncertainty clouds our credit
metric forecast. S&P Global Ratings believes there is a high degree
of unpredictability around policy implementation by the U.S.
administration and possible responses--specifically with regard to
tariffs--and the potential effect on economies, supply chains, and
credit conditions around the world. As a result, our baseline
forecasts carry a significant amount of uncertainty. As situations
evolve, we will gauge the macro and credit materiality of potential
and actual policy shifts and reassess our guidance accordingly.
"Military demand, by contrast, will likely remain solid in 2025.
Global conflicts will drive demand from U.S. and foreign
governments. We anticipate only limited price sensitivity in this
end market, considering the technical requirements and very high
cost of the equipment Pelican's cases protect. The company likely
will pass on any cost inflation, including that related to tariffs.
Furthermore, we believe brand recognition carries outsize
importance in government procurement.
"We believe liquidity will be adequate over the next 12 months. The
free cash flow deficit that we forecast would reduce liquidity
during 2025. Still, we expect sources will exceed uses by 1.5x over
the next 12 months. Continued free operating cash outflow in 2026
would increase the likelihood of a liquidity crunch.
"We expect Pelican will address its cash flow revolver maturity in
a timely manner. The facility matures in December 2026, and its
first-lien term loan matures two years later. The revolver is drawn
$28 million as of December 2024, so failure to extend this maturity
during 2025 would pressure our view of the company's liquidity and
our ratings.
"The negative outlook indicates that we could lower our rating on
Pelican if we believe a liquidity crunch over the subsequent 12
months is likely or that it could pursue a restructuring we view as
distressed."
S&P could lower its rating on Pelican if S&P believes:
-- Demand or operating performance will be weaker than we expect
and could lead to a liquidity crunch;
-- It will be unable to refinance its cash flow revolving facility
maturity in a timely manner; or
-- There is increased likelihood that it will undertake a
distressed restructuring.
S&P could raise its rating on Pelican if it believes:
-- The company's capital structure is no longer unsustainable,
which could occur if its marketing spending and biothermal capex
translate into significantly higher revenue and support positive
FOCF;
-- It can refinance its capital structure because S&P Global
Ratings-adjusted debt to EBITDA is in line with our forecast; and
-- Liquidity and covenant headroom are adequate.
PHCV4 HOMES: Amends Motion to Sell 17-Single Family Homes
---------------------------------------------------------
PHCV4 Homes, LLC, amends its motion to sell 17-Single Family Homes
in the community known as Amberley, in the municipality of
Robertsdale, Baldwin County, Alabama, in a private sale with the
purchase price of $1,839,368.60.
About PHCV4 Homes, LLC
PHCV4 Homes LLC is part of the residential building construction
industry.
PHCV4 Homes LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 24-02751) on September
10, 2024. In the petition filed by Misty M. Glass, as manager, the
Debtor reports estimated assets and liabilities between $10 million
and $50 million each.
The Honorable Bankruptcy Judge Tamara O. Mitchell presides over the
case.
The Debtor is represented by Frederick M. Garfield, Esq., at SPAIN
& GILLON, LLC.
PHILLIPS TOTAL: Gets Interim OK to Use Cash Collateral
------------------------------------------------------
Phillips Total Care Pharmacy, Inc. received interim approval from
the U.S. Bankruptcy Court for the Western District of Wisconsin to
use cash collateral.
The Debtor needs immediate access to funds to continue operations,
including payroll, vendor payments, and pharmaceutical supplies.
Bank of Wisconsin Dells holds a lien on the Debtor's assets. In
case of any diminution in the value of its cash collateral, the
bank will be granted replacement liens on cash, accounts receivable
and inventory acquired by the Debtor on or after the petition
date.
A final hearing is set for May 14. Objections are due by May 9.
Bank of Wisconsin Dells is represented by:
Sara C. McNamara, Esq.
Reinhart Boerner Van Deuren s.c.
1000 North Water Street, Suite 1700
Milwaukee, WI 53202
(414) 298-1000
smcnamara@reinhartlaw.com
About Phillips Total Care Pharmacy Inc.
Phillips Total Care Pharmacy Inc. is a retail pharmacy based in
Mauston, Wis.
Phillips Total Care Pharmacy sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Wis. Case No. 25-10699) on March
28, 2025. In its petition, the Debtor reported between $1 million
and $10 million in both assets and liabilities.
The Debtor is represented by Claire Ann Richman, Esq., and Michael
P. Richman, Esq., at Richman & Richman, LLC.
PMHB LLC: Court Asked to Reconsider Committee Appointment
---------------------------------------------------------
State Bank of Texas, a creditor of PMHB, LLC, filed a motion with
the U.S. Bankruptcy Court for the Western District of North
Carolina to reconsider the appointment of two creditors to the
official committee of unsecured creditors.
The court on April 7 ordered the appointment of Gerharz Equipment,
Inc., Atul Patel and Govindbhai Patel to serve on the committee.
In the motion, Robert Mays, Esq., attorney for the State Bank of
Texas, questioned the appointment of The Patels, saying these
creditors "possibly jointly hold a single debt."
"Since any committee will make decisions by majority vote, it would
not seem appropriate to have two holders of a single debt
constitute two of the three votes on the committee," Mr. Mays.
The attorney requested the bankruptcy court to hold a hearing to
investigate the nature of debts owed to The Patels and reconsider
their appointment to the committee.
About PMHB LLC
PMHB, LLC is a hotel development company based in Asheville, N.C.
PMHB sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. W.D. N.C. Case No. 25-10038) on March 2, 2025. In its
petition, the Debtor reported between $10 million and $50 million
in both assets and liabilities.
Judge George R. Hodges handles the case.
The Debtor is represented by Dennis O'Dea, Esq., at SFS Law Group.
An official committee of unsecured creditors has been appointed in
the Debtor's Chapter 11 case.
PMHB LLC: Gets OK to Hire SFS Law Group as Bankruptcy Counsel
-------------------------------------------------------------
PMHB LLC received approval from the U.S. Bankruptcy Court for the
Western District of North Carolina to hire SFS Law Group as
bankruptcy counsel.
The firm will render these services:
(a) provide legal advice with respect to the powers and duties
as debtor in possession in the continued operation of its business
and management of its property;
(b) negotiate, prepare, and pursue confirmation of a chapter 11
plan and approval of a disclosure statement, and all related
reorganization agreements and documents;
(c) prepare on behalf of the Debtor necessary applications,
motions, answers, orders, reports, and other legal papers;
(d) represent the Debtor in all adversary proceedings and
contested matters related to the case;
(e) represent the Debtor in all litigation arising from or
relating to causes of action owned by the estate or defending
causes of action brought against the estate, in any forum;
(f) appear in Court to protect the interests of the Debtor
before the Court; and
(g) perform all other legal services for the Debtor which may be
necessary and proper in these Chapter 11 proceedings.
SFS Law will be paid at these hourly rates:
Attorney $400
Paralegal $200
SFS Law will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Dennis O'Dea, partner of SFS Law Group, assured the Court that the
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code and does not represent any interest
adverse to the Debtor and its estates.
SFS Law can be reached at:
Dennis O'Dea, Esq.
SFS LAW GROUP
122 N. McDowell Street
Charlotte, NC 28204
Tel: (704) 780-1544
Fax: (704) 973-0043
About PMHB LLC
PMHB LLC is a hotel development company based in Asheville, North
Carolina.
PMHB LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. W.D.N.C. Case No. 25-10038) on March 2, 2025. In its
petition, the Debtor reports estimated assets and liabilities
between $10 million and $50 million each.
Honorable Bankruptcy Judge George R. Hodges handles the case.
Dennis O'Dea, Esq. at SFS LAW GROUP represents the Debtor as
counsel.
QHSLAB INC: Posts $259K Net Loss in 2024, Faces Going Concern Doubt
-------------------------------------------------------------------
QHSLab, Inc. filed with the U.S. Securities and Exchange Commission
its Annual Report on Form 10-K for the year ended Dec. 31, 2024.
QHSLab said, "We had an accumulated deficit of $4,331,350 at
December 31, 2024, generated net losses of $259,239 and $468,362
for the years ended December 31, 2024 and 2023, respectively, and
generated cash from operations of $142,437 in the year ended
December 31, 2024, and used $159,627 of cash in operations in the
year ended December 31, 2023. We are currently in default of our
obligations under our OID Notes and the Acquisition Note. These
factors, among others, raise substantial doubt about our ability to
continue as a going concern for a reasonable period of time."
Tampa, Fla.-based Astra Audit & Advisory LLC, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated Mar. 28, 2025, citing that the Company has only recently
operated profitably, is highly leveraged and has only recently
begun to generate cash from operations. These conditions raise
substantial doubt about its ability to continue as a going
concern.
"Our continuation as a going concern is dependent upon our ability
to obtain necessary equity or debt financing and ultimately from
generating revenues and positive cash flow to continue operations
and, in the interim, to convince the holders of our notes to
forbear from exercising any rights they might have as a result of
our defaults. The 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 be necessary should we be unable to continue
as a going concern," the Company explained.
"Our working capital requirements are expected to increase in line
with the growth of our business. We will remain highly leveraged as
we seek to expand our business. Existing working capital and
anticipated cash flows are expected to be adequate to fund our
operations over the next twelve months. If necessary, we would seek
to supplement such amounts through the issuance of debt or
equity."
"In addition to using our cash to satisfy our working capital
needs, we have begun to make payments on our outstanding
indebtedness to avoid continued growth in the amount of accrued
interest and penalties, and to retain the support of our lenders.
While the holders of our First and Second OID Notes and the
Acquisition Note have agreed to forbear from exercising their
rights as a result of our defaults at this time, there is no
guarantee they will continue to do so. If they elect to exercise
their rights, the amount of accrued interest and penalties owed
under the agreements will substantially increase. Further, should
they demand immediate payment of all amounts currently due and, in
the case of Mercer, exercise its rights under its Security
Agreements, it would have a material adverse effect on our business
and jeopardize our ability to continue operations. Any future
effort to restructure existing indebtedness through agreements with
our current lenders to allow us to increase the amount we can
devote to expanding our operations will require the consent of our
current lenders and likely would require the issuance of additional
debt or equity securities. Should we seek to raise additional
capital to satisfy our lenders, there is no assurance sufficient
amounts will be available."
"While we are focused on our business, we intend to continually
explore our options to raise additional capital or, when available,
borrow additional funds on terms which we believe are favorable to
us. Additional issuances of equity or convertible debt securities
will result in dilution to our current shareholders, could require
the issuance of equity securities at prices we believe are below
our true value and could cause the price of our common stock to
decrease. Further, such securities might have rights, preferences
or privileges senior to our common stock. Additional borrowings
could require that we grant the lenders a security interest or
other rights that impede our ability to operate as we deem best for
our shareholders. Further, any default under a loan agreement could
result in an action which could force us to seek bankruptcy
protection. Additional financing may not be available upon
acceptable terms, or at all. If adequate funds are not available or
are not available on acceptable terms, we may not be able to
maintain or expand our existing operations, take advantage of
prospective new business endeavors or opportunities, which could
significantly and materially restrict our business and adversely
impact our financial results."
"Our ability to obtain funds through the issuance of debt or equity
is dependent upon the state of the financial markets at such time
as we may seek to raise funds. The state of the capital markets may
be adversely impacted by various risks and uncertainties,
including, but not limited to future and current impacts of global
events such as wars in the Ukraine and Israel, increases in
inflation and other risks detailed in the risk factors sections
detailed in the 2024 Annual Report on Form 10-K."
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/2ct49pd6
About QHSLab, Inc.
Beach, Fla.-based QHSLab, Inc. is a medical device technology and
software-as-a-service company focused on enabling primary care
physicians to increase their revenues by providing them with
relevant, value-based tools to evaluate and treat chronic disease
as well as provide preventive care through reimbursable
procedures.
As of Dec. 31, 2024, the Company had $1,799,552 in total assets,
$2,407,308 in total liabilities, and a total stockholders' deficit
of $607,756.
QUINEBAUG CAMP: Hires Savage Law Partners as Bankruptcy Counsel
---------------------------------------------------------------
Quinebaug Camp Properties, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Rhode Island to hire Savage
Law Partners, LLP as counsel.
The firm will render these services:
a. attend the Debtor's meeting of creditors and initial debtor
interviews; and
b. draft and file the Debtor's disclosure statement and plan
of reorganization, together with other matters necessary and proper
for the representation of the Debtor in this case.
The counsel will represent the Debtor at his normal hourly rates of
between $125 to $350 per hour for paralegals and attorneys.
Savage Law Partners is a disinterested party in the matters in
which it is to be engaged within the meaning and intent of 11
U.S.C. Sec. 101(14), according to court filings.
The firm can be reached through:
Joseph P. Carnevale, Esq.
Savage Law Partners, LLP
564 S Water St
Providence, RI 02903
Tel: (401) 314-0733
Email: jcarnevale@savagelawpartners.com
About Quinebaug Camp Properties, LLC
Quinebaug Camp Properties, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. R.I. Case
No. 25-10145) on February 28, 2025, listing $100,001 to $500,000 in
assets and $500,001 to $1 million in liabilities.
Judge Diane Finkle handles the case.
Joseph Paul Carnevale, IV, Esq. at Savage Law Partners, LLP
represents the Debtor as counsel.
RED RIVER: Future Talc Rep. Asks Court to Reassess Ch. 11 Dismissal
-------------------------------------------------------------------
James Nani of Bloomberg Law reports that a future claims
representative has argued that the dismissal of a Johnson & Johnson
unit, Red River, from bankruptcy court should be revisited, as it
may hinder recovery for some talc claimants.
In a motion filed Monday, April 14, 2025, representative Randi
Ellis stated that J&J is open to resolving issues with its
subsidiary's failed Chapter 11 plan, which was intended to settle
thousands of talc-related lawsuits from women for $9 billion.
However, J&J has expressed its intention to return to the tort
system to litigate "meritless talc claims" and has made it clear
that it does not plan to appeal or seek reconsideration of the
rejected settlement, the report states.
About J&J Talc Units
LLT Management, LLC (formerly known as LTL Management LLC) was a
subsidiary of Johnson & Johnson that was formed to manage and
defend thousands of talc-related claims and oversee the operations
of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue
streams, including royalty revenue streams based on third-party
sales of LACTAID, MYLANTA/MYLICON and ROGAINE products.
LTL Management first filed a petition for Chapter 11 protection
(Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
In the 2021 case, LTL Management tapped Jones Day and Rayburn
Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP
and Shook, Hardy & Bacon LLP as special counsel; McCarter &
English, LLP as litigation consultant; Bates White, LLC as
financial consultant; and AlixPartners, LLP as restructuring
advisor. Epiq Corporate Restructuring, LLC, served as the claims
agent.
On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9
reconstituted the talc claimants' committee and appointed two
separate committees: (i) the official committee of talc claimants
I, which represents ovarian cancer claimants, and (ii) the official
committee of talc claimants II, which represents mesothelioma
claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing this Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an order
denying LTL's stay motion on March 31, 2023, and, on the dame day,
issued its mandate directing the Bankruptcy Court to dismiss the
2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support
a
global resolution on these terms.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed.
3rd Try
In May 2024, J&J announced its subsidiary LLT Management LLC is
soliciting support for a consensual prepackaged bankruptcy plan to
resolve its talc-related liabilities. Under the terms of the plan,
a trust would be funded with over $5.4 billion in the first three
years and more than $8 billion over the course of 25 years, which
J&J calculates to have a net present value of $6.475 billion.
Claimants must cast their vote to accept or reject the Plan by 4:00
p.m. (Central Time) on July 26, 2024. A solicitation package may be
requested at www.OfficialTalcClaims.com or by calling
1-888-431-4056. If the Plan is accepted by at least 75% of voters,
a bankruptcy may be filed under the case name In re: Red River Talc
LLC in a bankruptcy court in Texas or in the bankruptcy court of
another jurisdiction. Epiq Corporate Restructuring, LLC is serving
as balloting and solicitation agent for LLT.
On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Tex. Case No. 24-90505).
Porter Hedges LLP and Jones Day serve as counsel in the new Chapter
11 case. Epiq is the claims agent.
Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting
Counsel. Randi S. Ellis is the proposed prepetition legal
representative of future claimants.
REDMOND PROFICIENCY: Moody's Rates 2025A/B Revenue Bonds 'Ba1'
--------------------------------------------------------------
Moody's Ratings has assigned an initial Ba1 rating to Redmond
Proficiency Academy, OR's $23,335,000 Charter School Revenue Bonds
(Redmond Proficiency Academy Project), 2025 Series A (Tax-Exempt)
and $245,000 Charter School Revenue Bonds (Redmond Proficiency
Academy Project), 2025 Series B (Federally Taxable). The bonds will
be issued by the Oregon Facilities Authority on behalf of the
charter school. Following the sale of the bonds the academy will
have approximately $23.6 million in outstanding revenue debt. The
outlook is stable.
RATINGS RATIONALE
The Ba1 rating reflects the charter school academy's good
competitive profile, characterized by near-capacity enrollment and
a moderate student waitlist. Located in central Oregon (Aa1
stable), the academy benefits from a unique educational model and
limited competition beyond the local traditional public school
districts. The academy's financial metrics will remain sound,
highlighted by moderate operating margins, resulting in
satisfactory liquidity and pro-forma debt service coverage. Pro
forma leverage is somewhat elevated. The academy's governance is
characterized by a capable administration and board, as well as a
strong working relationship with its authorizing district. The risk
of charter non-renewal is low.
RATING OUTLOOK
The stable outlook reflects the charter school academy's consistent
enrollment demand and operating performance which will continue to
contribute to healthy financial metrics.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Material strengthening of the academy's competitive
considerations, including maintenance of full enrollment,
bolstering of student waitlist, and improved academic performance
-- Sustained positive operating performance, including EBIDA
margins above 15%, spendable liquidity above 150 days cash on hand,
and debt service coverage consistently above 1.5x
-- Moderation of the academy's long-term combined leverage of debt
and unfunded pension liabilities
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Material weakening of the academy's competitive considerations,
including declining enrollment and student waitlist, or diminished
academic performance
-- Financial operations that underperform current pro forma
expectations, including declines to days cash on hand and narrowing
of annual debt service coverage to near or below 1.2x
-- Pronounced increases to the academy's long-term combined
leverage of debt and unfunded pension liabilities
PROFILE
Redmond Proficiency Academy (RPA), a non-profit charter school
established in 2009, serves students in grades 6-12 across two
campuses in the City of Redmond, approximately 145 miles southeast
of Portland (Aaa stable). Sponsored by the Redmond School District
No. 2J (Aa3) under a 10-year charter contract effective through
June 30, 2029, RPA is governed by a seven-member board of
directors. The academy's curriculum emphasizes proficiency-based
learning, and it currently enrolls approximately 900 students.
METHODOLOGY
The principal methodology used in these ratings was US Charter
Schools published in April 2024.
RHODIUM ENCORE: Court OKs Revisions to Final Cash Collateral Order
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas
approved stipulated modifications to its final order that
authorized Rhodium Encore, LLC and its affiliates to use cash
collateral.
Following entry of the final order on Sept. 23 last year and the
satisfaction of all obligations under the debtor-in-possession
(DIP) loan, the companies and certain pre-bankruptcy secured
lenders agreed to modify the final order.
The court-approved modifications would revise the definition of
"Consenting
Prepetition Secured Parties" to include additional parties and
adjust certain terms such as adequate protection provisions.
Adequate protection would involve granting liens on the assets of
Rhodium Renewables LLC, one of the companies, and offering "AP
Interest Payments" (i.e., interest payments to certain creditors).
These interest payments may, under specific conditions, be
recharacterized as principal repayment.
About Rhodium Encore
Rhodium Encore LLC is a founder-led, Texas based, digital asset
technology company utilizing proprietary tech to self-mine bitcoin.
The Company creates innovative technologies with the goal of being
the most sustainable and cost-efficient producer of bitcoin in the
industry.
Rhodium Encore sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 24-90448) on Aug.
24, 2024. In the petition filed by Michael Robinson, as co-CRO, the
Debtor reports lead debtor's estimated assets between $100 million
and $500 million and estimated liabilities between $50 million and
$100 million.
Judge Alfredo R. Perez oversees the case.
The Debtor tapped Quinn Emanuel Urquhart & Sullivan, LLP, as
counsel, and Province, LLC as restructuring advisor.
RITEWAY INSURANCE: Taps Shraiberg Page P.A. as Bankruptcy Counsel
-----------------------------------------------------------------
Riteway Insurance Repair Service, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to hire
Shraiberg Page P.A. as general bankruptcy counsel.
The firm will render these services:
(a) advise the Debtor generally regarding matters of
bankruptcy law in connection with this case;
(b) advise the Debtor of the requirements of the Bankruptcy
Code, the Federal Rules of Bankruptcy Procedure, applicable
bankruptcy rules pertaining to the administration of the case and
U.S. Trustee Guidelines related to the daily operation of its
business and administration of the estate;
(c) represent the Debtor in all proceedings before this
court;
(d) prepare and review legal documents arising in this case;
(e) negotiate with creditors, prepare and seek confirmation of
a plan of reorganization and related documents, and assist the
Debtor with implementation of any plan; and
(f) perform all other legal services for the Debtor, which may
be necessary.
The firm will be paid at these hourly rates:
Bradley S. Shraiberg, Attorney $700
Partners $400 to $700
Associates $300
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a total retainer of $35,000.
Bradley S. Shraiberg, Esq., a partner at Shraiberg Page P.A.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Bradley S. Shraiberg, Esq.
Shraiberg Page P.A.
2385 NW Executive Center Drive, #300
Boca Raton, FL 33431
Tel: (561) 443-0800
Fax: (561) 998-0047
Email: bss@slp.law
About Riteway Insurance Repair Service Inc.
Riteway Insurance Repair Service, Inc. is a Miami-based company
specializing in insurance-related repair services.
Riteway sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. Case No. 25-13401) on March 28, 2025. In its
petition, the Debtor reported estimated assets between $100,000 and
$500,000 and estimated liabilities between $500,000 and $1
million.
Judge Laurel M. Isicoff handles the case.
The Debtor is represented byBradley S. Shraiberg at Shraiberg Page
PA.
ROCK N CONCEPTS: Court Extends Cash Collateral Access to May 13
---------------------------------------------------------------
Rock N Concepts, LLC and Lava Cantina The Colony, LLC received
another extension from the U.S. Bankruptcy Court for the Eastern
District of Texas to use cash collateral to pay their expenses.
The third interim order extended the companies' authority to use
cash collateral from April 8 to May 13.
Secured lenders Regions Bank and the U.S. Small Business
Administration were granted replacement security interests in, and
liens on, all property (except Chapter 5 causes of action) acquired
by the companies after their bankruptcy filing.
A final hearing is scheduled for May 13.
About Rock N Concepts LLC
Rock N Concepts, LLC and Lava Cantina The Colony, LLC, a live
entertainment venue and restaurant located in The Colony, Texas,
filed Chapter 11 petitions (Bankr. E.D. Texas Lead Case No.
25-40416) on February 18, 2025.
At the time of the filing, both Debtors reported between $1 million
and $10 million in assets and liabilities.
Sarah M. Cox, Esq., at Spector & Cox, PLLC is the Debtor's legal
counsel.
Regions Bank, as secured creditor, is represented by:
Jason T. Rodriguez, Esq.
Higier Allen & Lautin, PC
The Tower at Cityplace
2711 N. Haskell Ave., Suite 2400
Dallas, TX 75204
Telephone: (972) 716-1888
Facsimile: (972) 716-1899
jrodriguez@higierallen.com
RSA SECURITY: Couldn't Reach Debt Restructuring Terms w/ Lenders
----------------------------------------------------------------
Reshmi Basu of Bloomberg News reports that the debt restructuring
talks between RSA Security, backed by Clearlake Capital Group, and
a group of lenders have broken down after the parties were unable
to agree on terms, according to sources familiar with the matter.
Since discussions began in late 2023, RSA's performance and outlook
have declined, fueling disagreements over the scale of the discount
creditors would take in a potential debt exchange, the sources
said, speaking on condition of anonymity due to the confidential
nature of the talks, according to Bloomberg News.
About RSA Security LLC
RSA Security LLC -- https://www.rsa.com/ -- formerly RSA Security,
Inc. and trade name RSA, is an American computer and network
security company with a focus on encryption and decryption
standards.
SBLA INC: Court Extends Cash Collateral Access to May 14
--------------------------------------------------------
SBLA, Inc. received another extension from the U.S. Bankruptcy
Court for the Southern District of Florida, West Palm Beach
Division, to use cash collateral.
The order authorized the company to use its secured creditors' cash
collateral until May 14 to pay business expenses in accordance with
its budget.
As protection, secured creditors were granted replacement liens on
assets acquired by the company after its Chapter 11 filing, except
avoidance actions under Section 542 of the Bankruptcy Code.
The creditors that may have an interest in the company's cash
collateral are 8Fig, Inc.; Libertas Funding, LLC; Fox Funding
Group, LLC; Pinnacle Business Funding LLC; Rocket Capital NY LLC;
Spring Funding; Capytal.com; SellersFi; Corporation Service
Company, C T Corporation System, and Middesk, Inc. as
representatives; and CHTD Company.
The next hearing is scheduled for May 14.
About SBLA Inc.
SBLA, Inc. focuses on providing non-invasive, at-home anti-aging
solutions through its innovative "sculpting wands." The Company's
product line includes items like the Neck, Chin & Jawline Sculpting
Wand, Facial Instant Sculpting Wand, and Lip Plump & Sculpt to help
firm, lift, and rejuvenate various areas of the face and body.
Known for its collaboration with Christie Brinkley, SBLA emphasizes
effective, science-backed skincare to offer alternatives to
invasive procedures.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12606) on March 11,
2025. In the petition signed by Leonard Cogan, CFO, the Debtor
disclosed $801,858 in assets and $3,252,917 in liabilities.
Judge Mindy A. Mora oversees the case.
Bradley S. Shraiberg, Esq., at Shraiberg Page PA, represents the
Debtor as legal counsel.
SEDGWICK CLAIMS: $750MM Loan Add-on No Impact on Moody's 'B2' CFR
-----------------------------------------------------------------
Moody's Ratings says the B2 corporate family rating and B2-PD
probability of default rating of Sedgwick Claims Management
Services, Inc.'s (Sedgwick) remain unchanged following the
company's announcement that it plans to issue an add-on of $750
million to its existing backed senior secured first-lien term loan
B due July 2031 (rated B2). The company will use net proceeds to
fund the acquisition of Bottomline's legal spend management
division, which provides cloud-based software applications and
complementary legal bill review solutions. The rating outlook for
Sedgwick is unchanged at stable.
Sedgwick's ratings reflect its position as a leading global
provider of claims management solutions for corporations, public
entities and insurance carriers and its consistent growth in
revenue and EBITDA. Sedgwick is the largest US based third party
administrator (TPA) of property and casualty claims by revenue, and
has a diverse client base with broad product and geographic
diversification. The company benefits from long-term contracts,
recurring earnings, relatively high switching costs for clients,
and a somewhat variable cost structure. These strengths are offset
by Sedgwick's relatively high financial leverage and modest
interest and free cash flow coverage.
For the 12 months ended September 30, 2024, Sedgwick reported total
revenue of $4.7 billion, up from $4.6 billion in 2023 driven by
solid organic growth in the group's TPA business in the mid-single
digits. The company's EBITDA margin has gradually increased in
recent years and remains healthy in the upper teens.
Giving effect to the proposed transaction, Moody's estimates that
Sedgwick has a pro forma debt-to-EBITDA ratio of around 7x, (EBITDA
- capex) interest coverage of about 1.5x, and a
free-cash-flow-to-debt ratio in the low single digits. These pro
forma metrics include the rating agency's adjustments primarily for
operating leases and pensions. The metrics would be somewhat weaker
if capitalized software costs were deducted from EBITDA. Moody's
expects Sedgwick to reduce its leverage through EBITDA growth and
slight debt amortization over the next few quarters consistent with
past practices.
Sedgwick is a leading global provider of claims management, loss
adjusting and technology-enabled business solutions to
corporations, public entities and insurance carriers, with a
footprint spanning 80 countries. Sedgwick generated revenue of
approximately $4.7 billion for the 12 months through September 30,
2024.
SHABAZ YOGURT: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Shabaz Yogurt Land, Inc., according to court dockets.
About Shabaz Yogurt Land Inc.
Shabaz Yogurt Land Inc. sought protection for relief under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12523) on
Mar 9, 2025, listing up to $50,000 in both assets and liabilities.
Judge Scott M Grossman presides over the case.
Mark S. Roher, Esq. at Law Office of Mark S. Roher, P.A. represents
the Debtor as counsel.
SHAHINAZ SOLIMAN: Files Emergency Bid to Use Cash Collateral
------------------------------------------------------------
Shahinaz Soliman Clinic Corp asked the U.S. Bankruptcy Court for
the Central District of California, Los Angeles, Division, for
authority to use cash collateral.
The Debtor needs to use cash collateral to pay operational expenses
in accordance with the budget, with a 15% variance.
The business became insolvent due to rising legal costs from a
civil lawsuit and debt obligations, particularly to the U.S. Small
Business Administration.
The Debtor employs 11 non-insider employees and one insider, Dr.
Soliman herself. As of the petition date, the clinic reported
$417,100 in personal property assets, which include accounts
receivable, medical supplies, and equipment.
The Debtor's secured debts total approximately $2.15 million, with
SBA holding the first-position lien. The Franchise Tax Board is
listed as a priority unsecured creditor with a $40,000 tax claim,
and the general unsecured debts include credit cards, utilities,
rent obligations, a disputed claim from United Healthcare Services,
and vendor accounts.
The Debtor is offering adequate protection to SBA in the form of a
replacement lien on post-petition assets equal in priority to its
pre-bankruptcy lien and limited to the value of cash collateral
used.
Additionally, the Debtor proposed to make monthly adequate
protection payments of $2,140 to SBA, beginning within seven days
of the court's approval of interim cash collateral use, and
continuing on the first day of each month. Other secured creditors,
such as Bitty Advance 2, LLC, Prosperum Capital Partners, LLC, and
Silverline Services Inc., are not offered monthly payments at this
time because their claims are believed to be undersecured; instead,
they will receive replacement liens.
A copy of the motion is available https://urlcurt.com/u?l=IQkVyk
from PacerMonitor.com.
About Shahinaz Soliman Clinic
Corp.
Shahinaz Soliman Clinic Corp., dba Soliman Care Family Practice
Center Inc., is a family practice health center that offers
comprehensive healthcare services for individuals of all ages, from
pediatrics to geriatrics. The clinic specializes in both acute and
chronic care, focusing on prevention, diagnosis, and holistic
treatment. Led by Dr. Shahinaz Soliman, the center is committed to
providing compassionate, culturally competent, and patient-centered
care to the community.
Shahinaz Soliman Clinic Corp. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.: 25-12747) on
April 2, 2025. In its petition, the Debtor reported estimated
assets between $100,000 and $500,000 and estimated liabilities
between $1 million and $10 million.
Judge Barry Russell handles the case.
The Debtor is represented by Michael Jay Berger, Esq., at the Law
Offices of Michael Jay Berger.
SOLIGENIX INC: Lowers Quorum Requirement for Stockholder Meetings
-----------------------------------------------------------------
Soligenix, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that the Board of Directors
approved and adopted an amendment to the Company's bylaws,
effective as of March 25, 2025. The Amendment makes the following
change:
The Amendment reduces the quorum required for the transaction of
business at meetings of the Company's stockholders from:
(i) the holders of a majority of the voting power of the
shares of stock issued and outstanding and entitled to vote, to
(ii) the holders of 1/3 of the voting power of such shares,
present in person or represented by proxy, unless otherwise
required by applicable law or the Company's certificate of
incorporation.
The Company has experienced challenges in achieving quorum at prior
stockholder meetings, largely due to the size and dispersed nature
of its stockholder base and recent changes in brokerage firm
policies that have curtailed discretionary voting authority, even
for "routine matters." Reducing the quorum requirement is intended
to mitigate the risk of failing to achieve quorum at future
meetings, which could require costly adjournments, increased proxy
solicitation expenses, and cause unnecessary distraction for
management and disruption to the Company's operations.
About Soligenix
Headquartered in Princeton, NJ, Soligenix, Inc., is a late-stage
biopharmaceutical company focused on developing and commercializing
products to treat rare diseases where there is an unmet medical
need. The Company maintains two active business segments:
Specialized BioTherapeutics and Public Health Solutions. Its
Specialized BioTherapeutics business segment is focused on the
development and potential commercialization of HyBryte (the
proposed proprietary name for SGX301, or synthetic hypericin
sodium), a novel photodynamic therapy ("PDT") that uses topical
synthetic hypericin activated by safe visible light for the
treatment of cutaneous T-cell lymphoma. The Company's Public
Health Solutions business segment includes development programs for
RiVax, a ricin toxin vaccine candidate, SGX943, a therapeutic
candidate for antibiotic-resistant and emerging infectious
diseases, and vaccine programs targeting filoviruses (such as
Marburg and Ebola), as well as CiVax, a vaccine candidate for the
prevention of COVID-19 (caused by SARS CoV-2).
In its report dated March 21, 2025, Cherry Bekaert LLP, the
Company's auditor since 2023, issued a "going concern"
qualification, attached to the Company Annual Report on Form 10-K
for the year ended December 31, 2024, stating that the Company's
recurring losses and negative cash flows from operations raise
substantial doubt about its ability to continue as a going concern.
SOUTHERN COLONEL: To Sell Hattiesburg Property to Magnolia Estates
------------------------------------------------------------------
Southern Colonel Homes Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Mississippi, to sell Assets,
free and clear of liens, claims, and encumbrances.
The Debtor's primary assets consisted of real property and
improvements located on Highway 49 in Hattiesburg, Mississippi, on
which it conducts a retail mobile home dealership and other
ancillary services incidental to delivery and setup of mobile
homes. The real property assets were encumbered by deed of trust
liens in favor of Priority One Bank and First Bank.
The Debtor also owns certain new and used mobile home inventory
subject to security interests in favor of First Bank.
Priority One Bank also holds a security interest in certain
equipment and rolling stock of the Debtor used in its business
operations.
Both Priority One Bank and First Bank have filed motions for relief
from the automatic stay, and Priority One Bank has initiated
foreclosure proceedings and repossession efforts as to certain
assets of non-debtors used in relation to the Debtor's business.
The Debtor is owned by Randa Campbell-Pittman.
The Debtor enters into an agreement wtih Magnolia Estates Inc. to
purchase the Property, including miscellaneous furniture, fixtures
and equipment incidental to operations, free and clear of all
liens, claims, and encumbrances.
The purchase price of the Property is $1,025,000 and the said
amount will be allocated to satisfy the liens of First Bank on the
real property.
Magnolia also prepares a contract with the Debtor to provide
delivery and setup services for sales of mobile homes. The contract
also provides for stable cash flows to the estate to pay
administrative claims, enables reorganization around the Debtor's
remaining operations and supports prospective plan payments.
The Debtor asserts that Magnolia's offer is unique in the
comprehensive current and future benefits it provides to the Debtor
and its ability to reorganize. The sale also substantially reduces
the Debtor's outstanding indebtedness, providing for an exit from
its mobile home sale business and accommodation to First Bank in
liquidating collateral.
About Southern Colonel Homes Inc.
Southern Colonel Homes, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Miss. Case No. 25-50179) on
February 10, 2025. In the petition signed by Randa
Campbell-Pittman, president, the Debtor disclosed up to $10 million
in both assets and liabilities.
Judge Katharine M. Samson oversees the case.
Craig M. Geno, Esq., at Law Offices of Craig M. Geno, PLLC,
represents the Debtor as bankruptcy counsel.
First Bank, as lender, is represented by Jeff Rawlings, Esq. at
Rawlings & MacInnis, P.A.
SOYUZ MEDIA: Seeks to Extend Plan Exclusivity to November 3
-----------------------------------------------------------
Soyuz Media Inc. asked the U.S. Bankruptcy Court for the Eastern
District of New York to extend its exclusivity periods to file a
plan of reorganization and obtain acceptance thereof to November 3,
2025 and January 5, 2026, respectively.
This is the Debtor's first request for an extension of the
exclusivity periods. It is self-evident that the Debtor is not
seeking these extensions to artificially delay the conclusion of
this chapter 11 case or to hold creditors hostage to an
unsatisfactory plan proposal. The Debtor simply needs time to
reorganize its business operations, to reach an agreement with the
U.S. Small Business Administrative, to obtain Court approval for
the settlement terms and to file a feasible plan of reorganization
and disclosure statement, offering treatment to the creditors of
the estate.
The Debtor explains that an extension of the Exclusive Periods will
give the company a reasonable opportunity to negotiate and obtain
confirmation of a consensual plan with its creditors. Further, the
Debtor needs the requested extended period in order for all parties
to file their respective claims within the deadlines to be
established by the Court and for the Debtor to review said claims
once filed.
The Debtor claims that the requested extensions of the exclusivity
period to file a plan and disclosure statement will not harme any
economic stakeholder. Rather, the time will be used to negotiate a
resolution of claims filed in this case, in order to propose
feasible plan and disclosure statement.
The Debtor asserts that the extension of the exclusivity periods
will enable the Debtor to harmonize the diverse and competing
interests that exist and seek to resolve any conflicts in a
reasoned and balanced manner for the benefit of all parties in
interest.
Soyuz Media Inc. is represented by:
Alla Kachan, Esq.
Law Offices of Alla Kachan, PC
2799 Coey Island Avenue, Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
About Soyuz Media Inc.
Soyuz Media Inc. sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-40074) on January
7, 2025, listing up to $50,000 in assets and $100,001 to $500,000
in liabilities.
Judge Nancy Hershey Lord presides over the case.
Alla Kachan, Esq. at Law Offices Of Alla Kachan P.C. is the
Debtor's counsel.
STONEX GROUP: Moody's Affirms 'Ba3' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
Moody's Ratings affirmed the Ba3 long-term issuer and senior
secured notes ratings of StoneX Group Inc. (StoneX) following
StoneX's agreement to acquire R.J. O'Brien (RJO). The outlook
remains stable.
RATINGS RATIONALE
The affirmation reflects the acquisition's minimal impact on the
balance sheet leverage or liquidity of StoneX and the expanded
capabilities that it will bring to the firm, especially in
exchange-traded derivatives. The RJO acquisition will also
complement StoneX's offerings in a range of specialized financial
services functions. RJO has grown earnings before interest taxes
and depreciation (EBITDA) rapidly since 2021, and the merger with
StoneX offers potential cost synergies.
StoneX will pay $900 million for RJO in the form of $625 million in
cash and $275 million in StoneX shares and assume $143 million of
RJO subordinated debt. StoneX plans to raise new debt, that would
rank pari passu with the existing Ba3 notes, to fund the cash
portion of the acquisition and Moody's anticipates the new bonds to
be rated Ba3, subject to review of final terms and conditions.
Management expects the transaction to close in the second half of
2025, subject to customary regulatory approvals.
StoneX's leverage as measured by Debt/EBITDA improved over the past
years and will rise modestly as a result of the acquisition.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An improvement in StoneX's structural liquidity and a reduction in
holding company double leverage will be necessary for an upgrade.
A successful integration of RJO that generates increasing
profitability and scale for StoneX on a sustained basis could also
contribute to upward rating pressure.
StoneX's ratings could be downgraded were there to be a decline in
its liquidity profile of its operating entities or its holding
company. Additionally, evidence that management oversight, controls
and risk management are not keeping pace with growth could
contribute to downward rating pressure.
A change in financial policy further towards shareholder interests
via dividend payments or more share repurchases could also result
in a downgrade.
The principal methodology used in these ratings was Securities
Industry Market Makers published in June 2024.
STONEX GROUP: S&P Affirms 'BB-' ICR on Acquisition of R.J. O'Brien
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issuer credit and senior
secured debt ratings on StoneX Group Inc. The outlook remains
positive.
StoneX Group Inc.'s acquisition of futures brokerage firm R.J.
O'Brien (RJO) for $900 million will strengthen StoneX's franchise
by creating a global derivatives platform and the largest nonbank
futures commissions merchant in the U.S.
Despite pro forma deterioration in StoneX's risk-adjusted capital
(RAC) ratio, S&P thinks its strong earnings retention should help
rebuild the RAC ratio by year-end 2025.
S&P maintained the positive outlook because it thinks StoneX's
strong earnings retention should allow its risk-adjusted capital
(RAC) ratio to rebound by year-end 2025 from the impact of its
acquisition of RJO. StoneX's acquisition of RJO for $900 million
will be funded through $625 million second-lien senior secured
notes and $275 million in StoneX common stock. (Additionally,
StoneX will assume $143 million of RJO's debt.)
Despite the equity issuance, StoneX's pro forma total adjusted
capital declines to approximately $1.5 billion from $1.7 billion as
of Dec. 31, 2024, because of goodwill related to the acquisition.
As a result of this as well as the consolidation of RJO, our pro
forma RAC ratio decreases to 7.4% from 10.4%.
Nevertheless, S&P expects management to focus on building
capitalization with no dividends and limited stock buybacks (less
than the dilution from stock-based compensation), allowing the firm
to build equity by retaining earnings. This should help the firm
build the RAC ratio to above 8.5% by the end of 2025. An upgrade is
contingent on StoneX demonstrating that it can do so, and
comfortably maintain the RAC ratio above this level.
S&P believes the acquisition of RJO has the potential to
significantly improve StoneX's market position in derivatives and
strengthen its earnings through revenue and cost synergies. RJO,
which has operated for over 110 years, is one of the larger futures
commissions merchants (FCM) and clearing firms in the U.S., serving
more than 75,000 institutional, commercial, and individual clients
globally, in addition to a network of approximately 300 introducing
brokers.
The combination of the firms will create the largest nonbank FCM,
and it will improve StoneX's FCM ranking in the U.S. to eighth from
15th, based on customer funds.
RJO generated $170 million of EBITDA in 2024. Management expects
$50 million of expense synergies within two years of the
transaction's close from the elimination of duplicate back-office
functions and senior positions, as well as the harmonization of
clearing technology and platforms.
Although management didn't quantify revenue synergies, it
anticipates meaningful synergies by cross-selling StoneX's broader
products and capabilities to RJO clients--such as physical
commodities and OTC derivatives--where RJO lags. Likewise, StoneX
could leverage RJO's strengths in areas--such as the interest rate
hedging business for banks--where it has lacked a presence.
S&P thinks the acquisition should be smooth, given the nature of
RJO's operations and management's successful track record in
integrating previous acquisitions. StoneX has successfully
integrated many acquisitions, bringing them onto its platform,
cutting costs, and growing revenue and earnings. In particular, the
acquisition and integration of Gain Capital (a U.K.-based retail
broker focused on foreign exchange contracts for differences and
futures during the pandemic) has yielded substantial benefits for
StoneX through both expense reduction and increasing revenue.
S&P does not expect the RJO acquisition to increase the overall
risk profile of the combined firm. RJO's exposure to direct market
risk is largely from its trading book securities, held to
facilitate customer activity. Most of these are low-risk
government-related securities, and the firm maintains tight limits
on position size and overall exposure, which has supported the
firm's good history of limiting mark-to-market losses (including in
periods of significant volatility for securities and commodities
prices).
Unlike StoneX, RJO doesn't operate a physical commodities business
(which limits exposure to operational risks inherent in this
business), and it doesn't engage in margin lending to its clients
(which limits credit risks). RJO's bad debt expenses have remained
well below 0.5% of annual commission revenue since 2021.
StoneX, though, faces additional operational risks from its
physical commodities business beyond what is reflected in its RAC
ratio. It also faces market risk arising from its clients' defaults
on margin calls. (That is, StoneX may incur losses in excess of
posted clients' margins in the process of liquidating defaulting
clients' positions.)
These risks weigh on our view of its risk-adjusted capitalization,
as S&P believes they require additional capital to offset. That
said, StoneX's loss history has improved, with bad debt expenses
declining to below $1 million in 2024 (compared with an average of
$11 million over the past three years), in line with management's
target of less than 1% of operating revenue.
S&P said, "We expect StoneX's funding and liquidity to remain
adequate. As of Dec. 31, 2024, StoneX's gross stable funding ratio
(GSFR) was 96%, indicating that the firm had sufficient stable
funding of its less liquid assets. Given that the acquisition is
funded through additional long-term debt and the issuance of
equity, we estimate that the pro forma GSFR only modestly declined
to just over 92% as of Dec. 31, 2024, but that it will improve to
close to 100% by the end of 2025, owing largely to growth in
capital from earnings retention.
"StoneX will also renew its existing revolving credit facility (at
the holding company, currently due 2026) for a three-year maturity
and increase its size to $600 million from $500 million, which we
view favorably. Additionally, the company and its subsidiaries have
access to five committed credit facilities, under which they can
borrow up to $1.2 billion."
StoneX's biggest potential liquidity need is to meet clearinghouse
and other trade counterparties' margin calls on client positions.
Although the size of the margin calls has increased recently amid
volatility in the markets caused by the announcement of tariffs,
the company exhibits a large liquidity cushion above incremental
margin needs, as requested under its liquidity stress testing
framework.
The positive outlook continues to reflect peer relativities,
including with StoneX's closest rated peer, Marex. Marex Group PLC
(BBB-/Stable/A-3) has stronger capitalization (a RAC ratio above
10%) and lower operational risk (reflecting the absence of a
physical commodities business) than StoneX, and they remain key
reasons for the difference in ratings. That said, if StoneX's RAC
ratio were to rebound, the gap in the ratings could narrow, given
StoneX's broader and more diversified franchise, further
strengthened by the acquisition of RJO.
S&P's issuer credit rating on StoneX ('BB-') is two notches below
the group credit profile ('bb+'). This notching reflects the
firm's structural subordination as a nonoperating holding company
and the potential risk of regulatory interference in dividends from
its regulated subsidiaries.
S&P said, "Although revising up StoneX's group credit profile to
'bbb-' would allow us to narrow the notching to one notch (given
that the group credit profile is in an investment-grade category),
we would likely maintain the two-notch differential to reflect
StoneX's high double leverage (defined as holding company
investments in subsidiaries divided by holding company
shareholders' equity), which was 131% as of Sept. 30, 2024. StoneX
uses its holding company debt to downstream equity to its operating
subsidiaries in order to maintain strong regulatory capital. A
ratio exceeding our 120% threshold reflects higher risk due to an
increased dependence on subsidiaries' liquidity.
"We rate the company's existing $550 million senior secured
second-lien notes (and potentially the future issuance of senior
secured second-lien notes) at the same level as the issuer credit
rating, since we expect priority debt to stay below 30% of adjusted
assets, and since we expect assets available after priority debt to
be in excess of the second-lien debt outstanding."
The positive outlook reflects the potential for an upgrade over the
next 12 months if StoneX successfully integrates R.J. O'Brien while
prudently managing risk, rebuilds its capitalization such that it
adequately covers its risks (including its physical commodities
business), and maintains supportive funding and liquidity.
In the next 12 months, S&P could raise its ratings if it expects
the company to:
-- Successfully integrate R.J. O'Brien without significant
operational or financial challenges, as well as demonstrate a
reasonable amount of progress in achieving expense and revenue
synergies;
-- Rebuild capitalization to comfortably cover its risks; and
-- Demonstrate earnings resilience while maintaining supportive
funding and liquidity.
Over the same time frame, S&P could revise the outlook to stable if
it expects:
-- Significant integration challenges at StoneX,
-- Deteriorating operating performance,
-- Increased risk appetite,
-- A decline in the RAC ratio to close to 7%, or
-- Worsening liquidity or funding.
SUNNOVA ENERGY: Reportedly Struggling to Gain Creditor Lifeline
---------------------------------------------------------------
Bloomberg News reported that Sunnova Energy (NYSE:NOVA) is having
difficulty convincing creditors to provide it with fresh cash so it
can avoid bankruptcy, and has all but ceased to originate new
business.
The rooftop solar panels maker has been in talks with its creditors
for the past month, but efforts to raise new funds have been
unsuccessful, according to the report. Lenders are reportedly
concerned that the substantial level of financing the company is
seeking would do little to turn around the business, given in part
its reliance on federal tax incentives that may be at risk.
Still, no final decision on a course of action has been made, and
the company's fate remains fluid, Bloomberg said.
Seeking Alpha recounts that Sunnova (NOVA) issued a going concern
warning in March 2025, its CEO and CFO have stepped down, it has
brought in two new board members with restructuring experience, and
it has missed an interest payment on 11.75% senior notes due 2028,
and a 30-day grace period to make good on the amount due is coming
to an end.
About Sunnova Energy
Sunnova Energy International Inc. (NYSE: NOVA) is an
industry-leading adaptive energy services company focused on making
clean energy more accessible, reliable, and affordable for
homeowners and businesses. Through its adaptive energy platform,
Sunnova provides a better energy service at a better price to
deliver its mission of powering energy independence.
Founded in Houston, Texas, in 2012, Sunnova started its journey to
create a better energy service at a better price. Driven by the
changing energy landscape, technology advancements, and demand for
a cleaner, more sustainable future, we are proud to help pioneer
the energy transition.
SWC INDUSTRIES: Plan Exclusivity Period Extended to June 30
-----------------------------------------------------------
Judge M. Elaine Hammond of the U.S. Bankruptcy Court for the
Northern District of California extended SWC Industries LLC and
affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to June 30, 2025.
As shared by Troubled Company Reporter, the Debtors explain that
they have made substantial progress in the first three months of
these Chapter 11 Cases. A primary objective of these Chapter 11
Cases was to effectuate a Sale transaction, and the Debtors have
made meaningful progress to achieve this objective, including: (a)
entry of the Bidding Procedures Order and maturation of the
competitive sale process to maximize value; (b) fully negotiating a
binding purchase agreement with a stalking horse bidder and
obtaining Court approval of the same, setting a floor for the
achievable price in the sale process; and (c) developing the Plan
under which the Sale will be consummated.
Finally, and most notably, the Debtors have proposed a chapter 11
plan and made meaningful progress in further negotiating its terms
with the Committee and other parties in interest, including their
insurers and certain environmental regulatory authorities.
Extending exclusivity will preserve the current negotiation dynamic
and allow the Debtors more time to build consensus, broker
compromises, and reduce the extent to which the Court will need to
make legal rulings on contested matters at confirmation.
The Debtors claim that they are not seeking an extension to
unfairly prejudice or pressure creditors. The Debtors anticipate
that the Plan will be confirmed on or around May 6, 2025, which is
six days prior to the expiration of the initial Exclusive
Solicitation Period under section 1121(c)(3) of the Bankruptcy
Code. The Debtors merely seek an extension of the Exclusive Periods
through June 30, 2025 out of an abundance of caution; such an
extension will not unfairly prejudice or pressure creditors. Thus,
Dow Corning Factor 8 weighs in favor of extending the Exclusive
Periods.
Counsel to the Debtors:
Robert Harris, Esq.
Reno Fernandez, Esq.
BINDER MALTER HARRIS & ROME-BANKS LLP
2775 Park Ave.
Santa Clara CA 95050
Tel: (408) 295-1700
Email: rob@bindermalter.com
reno@bindermalter.com
-and-
C. Luckey McDowell, Esq.
Ian E. Roberts, Esq.
ALLEN OVERY SHEARMAN STERLING US LLP
2601 Olive Street, 17th Floor
Dallas, TX 75201
Phone: (212) 271-5777
Email: luckey.mcdowell@aoshearman.com
ian.roberts@aoshearman.com
William S. Holste, Esq.
599 Lexington Avenue
New York, NY 10022
Phone: (212) 848-4000
Email: william.holste@aoshearman.com
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.
TAKARA GROUP: Taps Winslow McCurry & MacCormac as Attorney
----------------------------------------------------------
Takara Group, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Virginia to hire Winslow, McCurry &
MacCormac, PLLC as its attorneys.
The firm's services include:
a) advising the Debtor with respect to its powers and duties
as debtor in possession in the continued management and operation
of its business and properties;
b) advising and consulting on the conduct of the Bankruptcy
Case, including all of the legal and administrative requirements of
operating in Chapter 11;
c) attending meetings and negotiating with representatives of
Debtor's creditors and other parties in interest;
d) taking all necessary action to protect and preserve the
Debtor's estate;
e) preparing all pleadings, including motions, applications,
answers, orders, reports, and papers necessary or otherwise
beneficial to the administration of the Debtor's estate;
f) representing the Debtor in connection with obtaining
post-petition financing, if necessary;
g) advising the Debtor in connection with any potential sale
of assets;
h) appearing before the Court to represent the interests of
the Debtor's estate before the Court;
i) taking any necessary action on behalf of the Debtor to
negotiate, prepare on behalf of the Debtor, and obtain approval of
a Chapter 11 plan and documents related thereto; and
j) performing all other necessary or otherwise beneficial
legal services to the Debtor in connection with prosecution of this
Bankruptcy Case.
The firm will be paid at these rates:
Christopher M. Winslow, Esq. $425 per hour
Senior Bankruptcy Paralegal $195 per hour
The firm received a retainer in the amount of $12,000, which
includes the filing fee of $1,738.
As disclosed in the court filings, Winslow, McCurry & MacCormac is
a "disinterested person" within the meaning of section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Christopher M. Winslow Esq.
WINSLOW, MCCURRY & MACCORMAC, PLLC
1324 Sycamore Square
Midlothian, VA 23113
Tel: (804) 423-1382
Fax: (804) 423-1383
Email: chris@wmmlegal.com
About Takara Group LLC
Takara Group, LLC is a full-service restaurant specializing in
serving ramen noodle dishes.
The Debtor filed Chapter 11 petition (Bankr. E.D. Va. Case No.
25-31283) on April 1, 2025, listing up to $100,000 in assets and up
to $1 million in liabilities.
Christopher M. Winslow, Esq., at Winslow, McCurry & MacCormac,
PLLC, represents the Debtor as legal counsel.
TELUS CORP: S&P Rates Canadian Dollar-Denominated Sub Notes 'BB'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating to Telus
Corp.'s (BBB-/Stable/ A-3) proposed Canadian dollar-denominated
fixed- to fixed-rate subordinated notes (30NC5 and 30NC10) due
2055. The company intends to use the net proceeds from this
issuance to repay its upcoming maturities and for other general
corporate purposes.
S&P said, "We classify these notes as hybrid securities with
intermediate equity content (50%). This reflects the notes'
permanence, subordination, and deferability features. In line with
our criteria, we will reclassify the notes as having minimal equity
content after 2035 because the remaining period until maturity will
be less than 20 years.
"We rate the securities two notches below our 'BBB-' long-term
issuer credit rating on Telus to reflect their subordination and
management's ability to defer the interest payments on the notes.
"The long-term nature of the subordinated debentures, along with
the company's limited ability and lack of incentives to redeem
them, meets our standards for permanence. Telus has emphasized its
willingness to maintain the instruments as part of its permanent
capital structure. If the company redeems either of the instruments
before the effective maturity date, it must replace them with an
equivalent or stronger equity content instrument issued up to or on
the date the original hybrid is redeemed. The instruments are
subordinated to all of Telus' existing and future senior debt
obligations, thereby satisfying the condition for subordination. In
addition, the interest payments on the notes are deferrable by up
to five years, which fulfills the deferability element. Pro forma
for the transaction, hybrids receiving intermediate equity
treatment is 4%-5% of the company's 2024 S&P Global
Ratings-adjusted capitalization."
TETRAD ENTERPRISES: Taps Anderson CPA-Group as Accountant
---------------------------------------------------------
TETRAD Enterprises LLC seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire Anderson CPA-Group,
LLC to provide accounting services.
The firm will bill $95 per hour, plus out-of-pocket expenses, for
work performed or to be performed by Anderson Lopez.
As disclosed in the court filing, the CPA firm is a disinterested
entity as defined in 11 U.S.C. Sec. 101(14).
The firm can be reached through:
Anderson Lopez
Anderson CPA-Group, LLC
P.O. Box 50162
Toa Baja, PR 00950-0162
About TETRAD Enterprises LLC
TETRAD Enterprises LLC is a conglomerate project development firm
specializing in large-scale utility projects. The company offers
Hydraflo pumps, which are hydraulically-driven, large-volume
submersible water pumps designed for rapid setup and heavy-duty
performance across various applications, including emergency
pumping, flood control, stormwater drainage, dewatering, and
agricultural irrigation.
TETRAD Enterprises LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.P.R. Case No. 25-00895) on February 28,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 billion and $50 billion each.
The Debtor is represented by Wallace Vazquez Sanabria, Esq. at WVS
LAW LLC.
TEXAS HEALTH: Gets Interim OK to Use Cash Collateral
----------------------------------------------------
Texas Health Foundation, Inc. got the green light from the U.S.
Bankruptcy Court for the Eastern District of Texas to use cash
collateral.
The order penned by Judge Joshua Searcy authorized the interim use
of cash collateral to pay the expenses set forth in Texas Health
Foundation's 30-day budget.
The budget projects total cash disbursement of $192,011.39.
McKesson Corporation, First Financial Bank, Samsung Financial
Solutions, Velocity Capital Group, LLC, and Knightsbridge Funding,
LLC may assert interest in the cash collateral.
As protection, these creditors were granted replacement liens on
cash collateral and property acquired by Texas Health Foundation
after its Chapter 11 filing, to the same extent and priority as
their pre-bankruptcy liens.
A final hearing is scheduled for May 13.
About Texas Health Foundation Inc.
Texas Health Foundation Inc., operating as Texas Center for Health,
provides a wide range of healthcare services with a focus on both
women's and men's health. The center specializes in areas such as
obstetrics, gynecology, hormone replacement therapy, infertility
treatments, weight loss programs, and aesthetic services like
injectables and skincare. With a commitment to patient-centered
care, the practice strives to offer tailored healthcare in a
comfortable and efficient setting, including the convenience of
telehealth options.
Texas Health Foundation sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tex. Case No. 25-10143) on April 3,
2025. In its petition, the Debtor reported total assets of $649,918
and total liabilities of $3,245,968.
The Debtor is represented by:
Robert C. Lane, Esq.
The Lane Law Firm, PLLC
Tel: 713-595-8200
Email: chip.lane@lanelaw.com
TEXAS REIT: Seeks to Hire Transwestern as Real Estate Broker
------------------------------------------------------------
Texas REIT LLC seeks approval from the U.S. Bankruptcy Court for
the Western District of Texas to employ Transwestern Property
Company SW GP, LLC. as real estate broker.
The Debtor requires a real estate broker to market and sell its
real property located at 8050-8092 Westheimer Road in the city of
Houston.
Transwestern will be paid a commission of 2 percent if it is the
sole broker and 3 percent if it shares a fee with a cooperating
broker.
Michael Snodgrass, executive managing director of Transwestern,
disclosed in a court filing that her firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Michael Snodgrass
Transwestern Property Company SW GP, LLC
1900 W Loop S #1300
Houston, TX 77027
Tel: (713) 270-3352
Email: Evelyn.Ward@transwestern.com
About Texas REIT LLC
Texas REIT, LLC owns a strip center in Houston, Texas located at
8050-8098 Westheimer.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-10120) on February 6,
2024. In the petition signed by Drew Dennett, authorized
representative, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge Shad Robinson oversees the case.
Stephen W Sather, Esq., at Barron & Newburger, PC, represents the
Debtor as legal counsel.
THERMOSTAT PURCHASER: S&P Rates $40MM First-Lien Term Loan 'B-'
---------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issue rating to Thermostat
Purchaser III Inc.'s proposed $40 million new first-lien
delayed-draw term loan due August 2028. The company will use the
proceeds from the loan to fund acquisitions, continuing their
aggressive merger and acquisition (M&A) strategy. The '3' recovery
rating indicates its expectation of meaningful (50%-70%) recovery
in the event of a payment default.
S&P said, "Our 'B-' issuer credit rating and stable outlook on
Thermostat are unchanged. We believe the transaction will not
materially impact leverage as EBITDA continues to improve from
organic growth and contributions from acquisitions. We believe
management will continue its aggressive acquisition strategy
furthering revenue and EBITDA contribution for the year. For the
year, we forecast EBITDA margins to improve modestly while leverage
decreases to the 9x area. However, we believe any deleveraging
could be limited as the company's private-equity ownership supports
the rapid acquisition strategy, and it will use excess cash flows
to continue fund M&A. We recognize there is a high degree of
unpredictability around tariffs and the potential effect on
economies, supply chains, and credit conditions. As a result, our
baseline forecast could carry a significant amount of uncertainty
and as situations evolve, we will gauge the credit materiality of
these events on Thermostat."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- Thermostat is the borrower under the facilities. The facilities
will also benefit from guarantees from the borrower's operating
subsidiaries.
-- PremiStar's (parent of Thermostat) debt capitalization include
a $65 million revolving credit facility due 2028, a $539.6 million
first-lien term loan due 2028, $140 million of first-lien
delayed-draw term loan (including the proposed new $40 million
loan), and a $93.5 million second-lien term loan due in 2029 (not
rated).
-- S&P's recovery analysis assumes first-lien collateral
represents substantially all of the emergence enterprise value,
which it calculates using a 6x distressed EBITDA multiple in line
with other facilities services peer companies, such as Legence
Holdings LLC and Saber Intermediate Corp.
-- S&P's simulated default scenario contemplates a default
stemming from weak operating performance and execution missteps.
This could result from a downturn in the company's major end
markets (i.e., education, health care, and government), financial
strain from its highly leveraged capital structure and acquisition
growth strategy, or intensified competition.
-- S&P believes if the company defaulted, a viable business model
would continue to exist because of its national footprint, large
number of customer relationships, and developed market position in
heating, ventilation, and air condition (HVAC) and refrigeration.
Simulated default assumptions:
-- Simulated year of default: 2027
-- EBITDA at emergence: $80 million
-- EBITDA multiple: 6x
-- Gross enterprise value: $480 million
-- The revolving credit facility is 85% drawn at default
Simplified waterfall:
-- Net emergence enterprise value (after 5% administrative costs):
$455 million
-- Total collateral value available to first-lien debt claims:
About $455 million
-- Senior secured debt claims: $745 million
-- Recovery expectation: 50%-70%; rounded estimate: 60%
*All debt claims include six months of prepetition interest.
THOMPSON ELECTRIC: Gets Interim OK to Use Cash Collateral
---------------------------------------------------------
Thompson Electric, Inc. got the green light from the U.S.
Bankruptcy Court for the Middle District of Tennessee, Nashville
Division, to use cash collateral.
The order penned by Judge Nancy King authorized the company's
interim use of cash collateral for the period from April 7 to May
15 to fund its business operations.
The creditors that may have liens on the Debtor's assets are
ServisFirst Bank and FCCI Insurance Company.
To protect the interests of ServisFirst and FCC, the Debtor will
provide them with replacement liens on assets it acquires after the
bankruptcy filing, with the same priority and extent as their
pre-bankruptcy liens. The value of the collateral is expected to be
maintained or increased via continued business activity.
In addition, ServisFirst will receive payments of $2,500 per week
during the interim period.
The next hearing will be held on May 13.
ServisFirst Bank is represented by:
Thomas H. Forrester, Esq.
Gullett, Sanford, Robinson & Martin, PLLC
150 Third Avenue South, Suite 1700
Nashville, TN 37201
Phone: (615) 244-4994
Fax: (615) 256-6339
tforrester@gsrm.com; djames@gsrm.com
FCCI Insurance Company is represented by:
Joshua K. Chesser, Esq.
Stites & Harbison, PLLC
SunTrust Plaza
401 Commerce Street, Suite 800
Nashville, TN 37219
Phone: (615) 782-2202
Fax: (615) 782-2371
jchesser@stites.com
About Thompson Electric Inc.
Thompson Electric, Inc. is an electrical service provider based in
Lebanon, Tenn., specializing in residential and commercial
electrical installations, repairs and large-scale projects.
Thompson Electric filed Chapter 11 petition (Bankr. M.D. Tenn. Case
No. 25-01471) on April 7, 2025, listing between $1 million and $10
million in both assets and liabilities. Jon Thompson, president of
Thompson Electric, signed the petition.
Judge Nancy B. King oversees the case.
R. Alex Payne, Esq., at Dunham Hildebrand Payne Waldron, PLLC,
represents the Debtor as legal counsel.
TREESAP FARMS: Court Approves April 30 Auction for Assets
---------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas
approved the bidding procedures for the sale of all or any portion
of the assets of Treesap Farms LLC and its debtor-affiliates.
Objections to the sale of the Debtors' assets, if any, are due
April 24, 2025, at 4:00 p.m. (prevailing Central Time).
An auction will take place on April 30, 2025, at 10:00 a.m.
(prevailing Central Time) followed by a sale hearing on May 12,
2025, at 1:00 p.m. (prevailing Central Time).
Pursuant to the Court order, the Debtors are authorized to: (i)
solicit bids in accordance with
the procedures outlined herein for a sale or disposition of all or
any portion for the Assets, and (ii) select one or more potential
bidders to act as stalking horse bidders, to enter into and perform
under asset purchase agreement(s) with such Stalking Horse
Bidder(s) and to offer any such Stalking Horse Bidder(s) customary
bid protections, including a market-driven break-up fee in an
amount not to exceed 3% of the proposed cash purchase price under
the applicable Stalking Horse APA, expense reimbursement in an
amount not to exceed $500,000, and a minimum overbid requirement at
the Auction, if any, in the amount of $500,000.
In order to participate in the bidding process or otherwise be
considered for any purpose hereunder, a person or entity interested
in the Assets or any portion of the Assets (other than a Stalking
Horse Bidder) (an "Interested Party") must deliver to the following
parties (collectively, the "Debtors' Advisors"):
i) proposed counsel to the Debtors:
Hunton Andrews Kurth LLP
Attn: Timothy A. Davidson II
Joseph P. Rovira
600 Travis Street, Suite 4200
Houston, Texas 77002
Email: taddavidson@Hunton.com
josephrovira@Hunton.com
ii) proposed investment banker to the Debtors:
Armory Securities, LLC
Attn: Douglas McDonald
Ron Papile
200 North Pacific Coast Highway
Suite 1525
El Segundo, CA 90245
Email: dmcdonald@armorysecurities.com
rpapile@armorysecurities.com
Copies of the Bidding Procedures Order and any other documents in
the Debtors' Chapter 11 Cases are available upon request to Donlin,
Recano & Company, LLC, by calling 1 (877) 322-4952 (Domestic) or 1
(212) 771-1128 (International), or by visiting
https://www.donlinrecano.com/tsf.
About Treesap Farms
TreeSap Farms LLC is a leading supplier of trees and plants to home
improvement retailers.
TreeSap Farms sought relief under Chapter 11 of the Bankruptcy Code
(Bankr. S.D. Tex. Case No. 25-90021) on Feb. 24, 2025. In its
petition, the Debtor disclosed estimated assets and liabilities
between $100 million and $500 million.
Bankruptcy Judge Alfredo R. Perez handles the case.
The Debtor tapped McKool Smith, Esq., as counsel, and Donlin,
Recano & Company, LLC as claims, noticing and solicitation agent.
UNIVERSAL BIOCARBON: Hires Scott Law Team as Special Counsel
------------------------------------------------------------
Universal Biocarbon Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to hire Scott Law Team
as special counsel.
The firm will advise and assist the Debtor in the employment
lawsuit in the Circuit Court of Palm Beach County, Florida Case No.
50-2024-CA-007460 MB.
The firm will be paid at these rates:
Managing Partner $525/hour
Of Counsel $475/hour
Partner $450/hour
Senior Associate $425/hour
Associate $400/hour
JD Law Clerk $275/hour
Paralegal $175/hour
Gabe Roberts, Esq., a partner at Scott Law Team, 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:
Gabriel T. Roberts, Esq.
SCOTT LAW TEAM, LLC
250 S Central Boulevard, Suite 104
Jupiter, FL 33458
Tel: (561) 653-0008
Fax: (561) 653-0020
About Universal Biocarbon Inc.
Universal Biocarbon Inc. transforms vegetative biomass such as yard
waste and tree trimmings, into high-quality carbon products like
compost, mulch, biochar, and activated carbon. Through a
partnership with the Sunshine State Biomass Cooperative, UBC
creates a cycle of beneficial reuse, sharing profits with the
suppliers of biomass feedstock. The company is based in Canal
Point, Fla.
Universal Biocarbon filed Chapter 11 petition (Bankr. S.D. Fla.
Case No. 25-10987-EPK) on January 30, 2025, listing up to $1
million in assets and up to $10 million in liabilities. David
Disbrow, chairman and founder of Universal Biocarbon, signed the
petition.
Judge Erik P. Kimball oversees the case.
Craig I. Kelley, Esq., at Kelley Kaplan & Eller, PLLC, represents
the Debtor as legal counsel.
VENTURE GLOBAL: Fitch Gives 'BB(EXP)' to New $1.5BB Secured Notes
-----------------------------------------------------------------
Fitch Ratings has assigned an expected rating of 'BB(EXP)' to the
approximately $1.5 billion of senior secured notes to be issued by
Venture Global Plaquemines LNG, LLC (VGPL) to partially refinance
the existing bank loan facility. The Rating Outlook is Stable.
RATING RATIONALE
The 'BB' rating on VGPL's senior secured notes reflects a financial
profile underpinned by contracted cash flows under 20-year,
take-or-pay sale and purchase agreements (SPAs) for 19.7 mtpa
capacity contracted with mostly credit-worthy offtakers.
Construction is approximately 94% complete but all contingency has
been used to cover construction costs. Remaining construction costs
and interest during construction as of January 2025 were
approximately $3.4 billion. The funding shortfall will be covered
from the sale of commissioning cargoes, which have already
commenced and are estimated to generate proceeds that far surpass
the remaining funding requirement.
Approximately 10% of the revenues are derived from an SPA with
unrated subsidiary of a well-rated corporate entity that provides a
limited parent guarantee. Based on its analysis of the low
dependency on these cash flows, the level of parent credit support,
importance of the project to the counterparties, and SPA pricing
compared to Fitch merchant prices, Fitch considers the mitigating
factors sufficient to assess the cash flows from this SPA under
contracted metric thresholds.
The self-operated project is exposed to operating cost volatility
and lacks major maintenance reserve accounts. These factors are
mitigated by use of proven technology, long term service agreements
(LTSAs) with the original equipment manufacturer (OEM) for the
liquefaction trains, and Fitch's higher cost stresses in the
financial analysis. In the rating case, the production level is 2.5
MTPA above nameplate capacity, in line with the stressed downside
case provided by the independent engineer (IE) and equipment
performance guarantees.
The debt structure is similar to other rated LNG projects,
featuring refinancing risk and permissive additional debt
provisions. Fitch's rating case stresses capacity, fuel use, gas
prices, operating costs, and refinancing rates and results in a
minimum project life coverage ratio (PLCR) of 1.21x during the
refinancing period.
KEY RATING DRIVERS
Completion Risk - Midrange
Advanced Completion Status with Mitigated Funding Shortfalls:
Construction works are advanced with Phase I completion at 98% and
Phase II completion at 86%, substantially mitigating overall
completion risk. VGPL is utilizing a multi-contractor structure
with experienced specialized contractors such as Baker Hughes,
General Electric, UOP Honeywell, Kellogg Brown and Root (KBR), and
CB&I. BHGE is supplying the project with the key equipment and is a
highly experienced OEM supported by an investment-grade parent.
KZJV, the joint venture between KBR and Zachry Industrial Inc.,
plays an integral role as the EPC contractor responsible for the
integration of the facility components, testing and commissioning.
The EPC contract is largely structured on a reimbursable basis
exposing the project to cost escalation. The project has allocated
all its contingency. However, due to the phased completion plan,
the project has already started to sell commissioning cargoes,
which are expected to generate ample revenue to cover remaining
project costs. There is a significant buffer between the projected
completion date and the SPA commercial operation dates (COD)
windows to accommodate schedule delays.
Operation Risk - Midrange
Self-Operated with Some Operating Experience: VGPL relies on
affiliate companies to operate and manage the facilities, similar
to other LNG projects operating in the U.S. As of March 2025, these
affiliates have an operating track record of more than two years of
ramping up production and generating LNG at Venture Global
Calcasieu Pass (VGCP), which is in the commissioning phase. The
project has hired experienced staff from within the LNG industry
and coordinates with its contractors to provide training support
prior to COD.
Technical risk is mitigated by world-class OEMs that test,
fabricate, ship, and assist in the installation of their equipment.
The project design has built-in redundancies for major equipment,
self-generated power that is insulated from grid-related outages,
and performance guarantees that allow higher production levels than
what is assumed in Fitch cases.
Unexpected operational problems that emerge after the start of
commercial operation should be covered by warranties provided by
the OEMs and contractors. The LTSA with Baker Hughes Company (BHC),
maintenance budgets, and the modularity of the project design
should allow for predictable and spread out maintenance costs,
which mitigate the risk related to the lack of a mandatory
maintenance reserve requirement.
The IE reports that the project has developed an adequate operating
plan. Fitch accounts for the lack of operating history with
additional cost stresses in its financial analysis. The IE notes
that the use of electric motors rather than turbines in the
liquefaction process should lead to lower levels of downtime. The
project relies on its own power generation which adds operational
complexity but may provide more certainty of supply by avoiding
weather-related grid outages.
Supply Risk - Midrange
Access to Adequate Gas Supplies Backed by Firm Transportation
Capacity: Supply risk is mitigated by the project's operations in
an area with abundant gas supply, the establishment of an
experienced gas procurement team that is already purchasing gas for
commissioning cargos, and offtake contracts with gas cost recovery
component. VGPL has signed precedent agreements for firm
transportation capacity at fixed rates across four pipelines,
sufficient to supply quantities of feed-gas in excess of the
nameplate production capacity of the facility for the term of the
assumed debt profile.
The project relies on two lateral segments of the Gator Express
Pipeline to transport gas from other pipelines to the project site,
which removes single point of failure risk. As noted by the market
consultant, the project's approach to gas procurement should
provide for sufficient near- to medium-term contracted volumes
while maintaining appropriate flexibility for long-term needs.
Revenue Risk - Composite - Midrange
Largely Contracted Profile: VGPL has entered into thirteen
long-term SPAs for the sale of 19.7mtpa of LNG with creditworthy
off-takers (almost the entire nameplate capacity of 20mtpa), and a
shorter-term contract for 0.3mtpa. Capacity in excess of
contractual commitments is sold to a Venture Global affiliate. Each
SPA provides revenue from a capacity payment that is paid
regardless of the LNG volumes lifted and a commodity-based payment
per unit of LNG lifted. The project effectively passes along
variable fuel costs through the commodity payment linked to gas
prices at Henry Hub, while fixed costs are covered by the fixed
capacity fees of the SPAs. This structure insulates the project
from broader trends in the demand for LNG.
About 90% of nameplate capacity is contracted with counterparties
that are credit-worthy or have provided guarantees from
credit-worthy parents or affiliates. Excess capacity is contracted
with Venture Global. Flexible delivery contractual features and
excess production capacity above volumes contracted with such
offtakers mitigate the risk that the project will not be able to
meet its SPA delivery obligations in cases of unplanned outages.
Since VGPL's capacity is fully contracted, there is no merchant
exposure. However, Fitch applied merchant threshold to revenues
from counterparties that are unrated or below the project rating.
Debt Structure - Midrange
Refinance Exposure Mitigated by Staggered Maturity Profile: The
project is significantly exposed to the risk of rising interest
rates. The senior notes have bullet maturities and account for
approximately 30% of the project's debt including the bank loan.
The bank loan matures in 2029 and has limited amortization prior to
maturity. The project is required to hedge at least 75% of its
variable rate exposure. The debt structure includes a senior debt
coverage ratio test of 1.4x for additional debt issuances and an
equity distribution test of 1.25x. Any SPA termination without
replacement would require mandatory prepayment to maintain 1.45x
coverage accounting for the loss of that SPA.
Financial Profile
Fitch's financial analysis is based on partial refinancing in 2025
of the $12.9 billion term loan with non-amortizing 144A inaugural
bonds in an aggregate amount of around $1.5 billion. Fitch applies
a stressed refinancing interest rate and assumes the debt is fully
amortized within the 20-year term of the SPAs, once the bonds are
refinanced.
Fitch assumes base case production capacity of 24 mtpa based on IE
estimates and plant performance during commissioning. Contracts for
19.7 mtpa are with creditworthy third-party offtakers for the
20-year term. The project generates $0.50/MMBtu in liquefaction
fees on the excess capacity above nameplate, which is contracted to
Venture Global's marketing affiliate. In this scenario the minimum
PLCR is 1.33x in 2034.
Fitch's rating case assumes full SPA lifting and lower production
capacity at 22.5 mtpa. Fitch applies higher operating expenses,
higher fuel gas use and lower gas prices. Under these assumptions,
the minimum PLCR is 1.21x in 2034.
PEER GROUP
Fitch publicly rates several LNG projects that share some of the
same features as VGPL. However, they are fully operating, use
different technologies and contracting structures, and demonstrate
stronger financial profiles benefitting from moderated rating case
stress scenarios given their operating history, resulting in
investment-grade ratings.
Cheniere Corpus Christi Holdings, LLC (CCH; BBB+/Stable) utilizes
widely proven liquefaction technology with large-scale trains
powered by gas turbines. It sources power from the local grid,
which may be less complex than own generation for VGPL, but may
expose it to grid outages. Both CCH and VGPL have contracted the
majority of their capacity with credit-worthy entities under SPAs
and are responsible for gas procurement and transportation.
Below-investment grade counterparties are assumed as merchant for
CCH. For VGPL, a small amount of capacity is contracted with
below-investment grade counterparties, which Fitch assumes is not a
rating constraint. CCH has a rating case minimum PLCR of 3.8x.
Similar to CCH, Sabine Pass Liquefaction, LLC (Sabine Pass;
BBB+/Stable) is a fully operational LNG project owned and developed
by Cheniere Energy Inc., as well as other investors. Similar to VG,
it has SPAs with counterparties of adequate credit quality,
receives a fixed capacity fee and Henry Hub-tied fees for lifting,
and manages the gas supply. Like CCH, Sabine Pass uses
ConocoPhilips Optimized Cascade liquefaction technology, but
similar to VGPL relies on its own power generation. Fitch's
financial analysis for Sabine Pass incorporates merchant revenues.
Its rating case minimum PLCR is 3.1x.
FLNG Liquefaction 2, LLC (FLIQ2; BBB/Stable) is an independently
financed project that is a part of a multi-train development. The
rating reflects FLIQ2's long-term tolling agreement that provides a
direct pass-through of gas procurement costs to a single
investment-grade offtaker for nearly all of its capacity and no
refinance risk. The strength of the revenue stream suggests a lower
DSCR threshold for any given rating level compared with VGPL.
FLIQ2's rating case DSCRs average 1.40x.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Deterioration in Fitch's credit view for a material SPA off-taker
or SPA guarantor;
- A decline in the minimum PLCR below 1.2x in the Fitch rating case
due to cost escalation, negative Henry Hub basis or production
shortfalls;
- Higher refinancing costs, issuance of incremental senior debt, or
failure to apply mark to market proceeds from swap breakage to pay
down project debt.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Project reaches commercial operations date and demonstrates an
operating profile with higher production or lower operating costs
resulting in PLCR above 1.3x in the Fitch rating case;
- A reduction in refinancing exposure leading to lower assumed debt
costs and rating case financial metrics above 1.3x.
TRANSACTION SUMMARY
VGPL, a wholly owned indirect subsidiary of Venture Global, Inc.
(NYSE:VG), is undertaking the development, construction and
operation of a liquefaction facility located in Plaquemines Parish,
LA, on the U.S. Gulf Coast. VGPL is issuing around $1.5 billion of
144A senior secured notes in April 2025 to partially refinance the
existing term loan facility that has a current balance of
approximately $12.9 billion. The fixed rate notes will be pari
passu with the term loan.
SECURITY
First-priority security interest in substantially all assets of the
issuer, Venture Global Gator Express, LLC (VGGE) as guarantor, and
future subsidiaries (if any), pledge of 100% of the equity in the
issuer, and guarantor, and all contracts, agreements (including
material project agreements) and rights thereunder, certain
accounts, cash flow and other revenues with customary exceptions to
be agreed, consistent with existing credit facilities.
Asset Description
VGPL is a 20 MTPA nameplate capacity LNG project under construction
in Plaquemines Parish, approximately 20 miles south of New Orleans.
The project is being built in two phases, 13.3 MTPA in phase 1 and
6.7 MTPA in phase 2. The project also entails the construction of
the Gator Express Pipeline via project company VGGE to supply
natural gas to the LNG facility. VGPL is the sole shipper on this
pipeline, allowing for dedicated operations.
VGPL has reserved the entire available firm transportation capacity
on VGGE for 20 years, as well as over 5.37 Bcf/d of combined
transport capacity on TETCO, Columbia Gulf, Tennessee Gas Pipeline
and TC Louisiana Intrastate Pipelines. Full production at sponsor
case peak capacity (~27 MTPA) would require ~4.2 Bcf/d of this
capacity. VGGE is also a guarantor on the term loan and is expected
to guarantee the senior notes.
Phase 1 reached final investment decision (FID) in May 2022. VGPL
expects to reach substantial completion in February 2026 and is
targeting to reach COD in Q4 2026. Phase 2 reached FID in March
2023 and is expected to reach substantial completion in July 2026
with COD in mid-2027.
Date of Relevant Committee
04 April 2025
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
----------- ------
Venture Global
Plaquemines LNG, LLC
Venture Global
Plaquemines LNG,
LLC/Project Revenues
- First Lien –
Expected Ratings/1 LT LT BB(EXP) Expected Rating
VENTURE GLOBAL: S&P Assigns Prelim 'BB+' Rating on Sr. Sec. Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' preliminary rating to Venture
Global Plaquemines LNG LLC's proposed issuance of $1.5 billion
senior secured notes.
S&P Global Ratings also assigned a '3' recovery rating to the
debt.
The notes are rated under S&P's project finance criteria, which is
determined as the lower of the stand-alone credit profile (SACP)
for the construction and operating phases of the project.
The rating is based on the SACP of the construction phase, which
benefits from an advanced stage of construction that reduces the
risk of delays and cost overruns.
The stable outlook reflects S&P's expectation that the project's
construction will proceed on time and on budget with phase 2
anticipated to enter operations in mid-2027.
Venture Global Plaquemines LNG LLC (VGPL or the project) consists
of a natural gas liquefaction and export facility in Plaquemines
Parish, La., and the associated Gator Express Pipeline for natural
gas supply to the project. Venture Global LNG Inc. (VGLNG) has
developed and commercialized the project in two phases. The first
phase consists of the pipelines, equipment, and facilities to
support liquefied natural gas (LNG) production of 13.3 million
tonnes annually (mtpa). Phase 2 consists of the facilities to
support incremental production of 6.7 mtpa. When both phases are
complete, the project will have an aggregate nameplate capacity of
20 mtpa and will consist of 36 liquefaction train modules, four LNG
storage tanks, three pretreatment systems, three loading berths,
two 720 megawatt combined cycle power plants, a marine offloading
facility, and the pipeline.
Construction risk has largely been mitigated based on the advanced
stage of construction. The project experienced some early
construction delays with respect to its power island and
pretreatment modules. However, the project sponsor descoped some of
the work under the existing construction contracts and took direct
responsibility for this work. This ensured that the project had
sufficient temporary power to allow construction and commissioning
to continue. In addition, work on the pretreatment modules has
accelerated through the sponsor's intervention to mitigate further
delays. The incremental cost of this work was funded with further
equity injections from the parent.
At this stage, the project benefits from the building program being
very advanced with relatively small amounts of capex remaining. The
project is producing cash flow from the first 16 trains that are in
commissioning, which provides a significant source of funds to
complete the project and provide additional equity should any
further problems arise. In addition, the project uses the same
technology and design as its sister project, Venture Global
Calcasieu Pass LLC (VGCP), which is anticipated to start commercial
operations on April 15, 2025.
The project has a high level of contractedness with strong
counterparties. The project is supported by 20-year contracts on
19.7 mtpa with a shorter-term contract for the remaining 0.3 mtpa.
All of the contracts contain a lifting fee, which consists of a
fixed percentage above Henry Hub as well as a fixed capacity fee.
The fixed capacity fee is payable regardless of whether cargos are
lifted. This contractual structure creates a highly resilient
long-term cash flow. Moreover, cash flow resiliency is further
supported by the underlying credit strength of the revenue
offtakers. The weighted-average credit assessment of the revenue
offtakers is 'A-'.
Potential for excess capacity could enhance cash flow. The project
has a total nameplate capacity of 20 mtpa, although it has a
guaranteed capacity of 22.5 mtpa. The sponsors have indicated that,
based on design enhancements made since VPCP was built, the plant
will be able to support higher production. Initial performance
testing (based on cargos that have been lifted since December) and
further modeling have suggested that production could be as high as
27.1 mttpa. The project has entered into sales and purchase
agreements with Venture Global Commodities LLC, a wholly owned
subsidiary of Venture Global LNG Inc. (VGLNG; BB-/Stable/--) for
any production above 20 mtpa. Given that commissioning only
commenced in the past three months, S&P has modeled excess capacity
of 1.375 mtpa (95% of guaranteed production of 22.5 mtpa). Overall,
the strong contractual framework, along with the potential for
incremental revenue from excess capacity, creates a robust cash
flow.
Separateness provisions and other structural features are
potentially time dated. S&P Global Ratings' criteria for rating
project finance transactions contain certain requirements to allow
the project to be rated on a stand-alone basis. These include,
among others, restrictions on additional debt, mergers, pledging of
security, and separateness. Many of these provisions are contained
in the construction term loan agreement, which is scheduled to
terminate in 2029 or earlier if the loan is refinanced. The absence
of these features could affect the rating on the project to the
extent that they are not carried over to the note indenture. In
addition, S&P's criteria look to the presence of anti-filing
mechanisms such as the appointment of an independent director whose
consent is required to initiate an insolvency proceeding of the
project company. The sponsor has indicated that an independent
director will be appointed. Failing such appointment and without
the addition of any other anti-filing mechanism, there is a risk
that the rating on the project could be tied to that on its
sponsor, VGLNG.
The stable outlook considers both the construction and operating
risk of the project. Construction is significantly advanced, which
S&P has considered in its rating. The project benefits from proven
technology and design. In addition, once the project is
constructed, cash flow will be robust and supported by a strong
contractual foundation with predominantly investment-grade
counterparties.
S&P said, "We could take a negative rating action if the project
experiences unforeseen delays that threaten the scheduled
substantial completion date such that costs increase beyond the
mitigations provided in the project forecast.
"We are unlikely to raise the rating during construction. We could
take a positive rating action around the time commercial operation
starts if forecast cash flow remains consistent with our current
base case such that the minimum debt service coverage ratio (DSCR)
is at or above 1.25x."
VENUS CONCEPT: Reaches Consent Deal, Loan Amendment With Madryn
---------------------------------------------------------------
Venus Concept Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company, Venus
Concept USA, Inc., a wholly-owned subsidiary of the Company, Venus
Concept Canada Corp., a wholly-owned Canadian subsidiary of the
Company, and Venus Concept Ltd., a wholly-owned Israeli subsidiary
of the Company (the "Loan Parties"), entered into a Consent
Agreement with Madryn Health Partners, LP and Madryn Health
Partners (Cayman Master), LP.
The Consent Agreement granted relief under the MSLP Loan Agreement,
such that:
(i) certain minimum liquidity requirements under the MSLP Loan
Agreement are waived through April 30, 2025, and
(ii) permit Venus USA to apply the April 8, 2025 cash interest
payment due under each Note (as defined in the Consent Agreement)
to the respective outstanding principal balance of each Note.
Thirteenth Bridge Loan Amendment:
On the same date, the Loan Parties entered into a Thirteenth Bridge
Loan Amendment Agreement with the Lenders.
The Thirteenth Bridge Loan Amendment amended that certain Loan and
Security Agreement, dated April 23, 2024, among Venus USA, as
borrower, the Company, Venus Canada and Venus Israel, as
guarantors, and the Lenders, as lenders, to:
(i) extend the maturity date of the Bridge Loan from March 31,
2025 to April 30, 2025, and
(ii) increase the Delayed Draw Commitment, as defined in the
Loan and Security Agreement, from $11,000,000 to $21,000,000.
About Venus Concept
Toronto, Ontario-based Venus Concept Inc. is an innovative global
medical technology company that develops, commercializes, and
delivers minimally invasive and non-invasive medical aesthetic and
hair restoration technologies and related services. The Company's
systems have been designed on cost-effective, proprietary, and
flexible platforms that enable the Company to expand beyond the
aesthetic industry's traditional markets of dermatology and plastic
surgery, and into non-traditional markets, including family
medicine and general practitioners and aesthetic medical spas.
Mississauga, Canada-based MNP LLP, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
March 31, 2025, attached to the Company's Annual Report on Form
10-K for the year ended December 31, 2024, citing that the Company
has reported recurring net losses and negative cash flows from
operations, which raises substantial doubt about its ability to
continue as a going concern.
VERIFONE SYSTEMS: Moody's Affirms 'B3' CFR, Outlook Stable
----------------------------------------------------------
Moody's Ratings affirmed the ratings of Verifone Systems, Inc.
(Verifone), including its Corporate Family Rating at B3 and its
Probability of Default Rating at B3-PD. At the same time, Moody's
assigned a B3 rating to the company's extended Senior Secured First
Lien Bank Credit Facilities (Term Loan and Revolving Credit
Facility). Moody's also withdrew the B3 rating on the company's
Senior Secured First Lien Term Loan due 2025, which was repaid as
part of the recent debt refinancing. The B3 rating on the $25
million non-extended portion of the Senior Secured First Lien
Revolver Credit Facility due May 2025 remains unaffected and will
be withdrawn once that obligation is paid off. The outlook remains
stable.
The refinancing included a $235 million preferred equity infusion
by current equity holders, which was used to bring down the term
loan balance to $1,918 million from $2,041 million, net of $50
million of termed out revolver borrowings and $52 million in
capitalized financing costs, and to place $10 million on the
balance sheet. The extended revolving credit facility will be $125
million after May 2025 and matures May 2028. The extended term loan
matures August 2028.
The stable outlook reflects expectations that the company's revenue
will expand approximately 10% in FY 2025, that it will generate
positive free cash flow (excluding non-recurring extra interest and
Israeli tax liability payments during the fiscal year, which will
not repeat in FY 2026), and that the company will maintain
sufficient liquidity.
A comprehensive review of all credit ratings for the respective
issuer(s) has been conducted during a rating committee.
RATINGS RATIONALE
The B3 CFR reflects the company's elevated financial leverage,
estimated at about 9x debt-to-EBITDA at January 31, 2025 (pro forma
for the recent debt refinancing, but excluding add backs for
restructuring and other one-time costs), a revenue base that
includes a significant portion of point-in-time hardware sales that
can be cyclical in nature and be affected by supply chain
disruptions including tariffs, a competitive landscape of
point-of-sale (POS) terminal providers that include lower-cost
players, and one-time payments owed to the Israeli tax authority,
which constrain the liquidity position in the short run.
These factors are balanced by a large installed base of POS
terminals, especially with enterprise customers, a very robust
market share position in POS software and card readers at US gas
stations, solid momentum in commercial activity among payment
processors, and an ongoing market recovery combined with
substantial cost takeouts that should enable Verifone to lower
debt-to-EBITDA to about 6.5x by fiscal year end 2025, and to
generate free cash flow when excluding about $45 million in
non-recurring Israeli tax payments and an extra interest payment of
about $30 million due to timing related to the refinancing.
Governance considerations include the company's elevated leverage
and concentrated ownership structure which can result in aggressive
financial policies.
Liquidity is adequate and is supported by a $77 million cash
balance and about $41 million in revolver availability as of March
31, 2025, which is pro forma for the refinancing and the expiring
of $25 million of revolver commitments in May 2025. Positively,
maturities of the term loan and revolver were extended to 2028 via
a refinancing that included a $235 million preferred equity
contribution by current equity holders, completed in March of 2025.
Tariffs and associated weaker macroeconomic conditions could lead
to a lower than expected liquidity position at fiscal year end. The
credit agreement includes a maximum First Lien Net Leverage Ratio
of 8x when more than 35% of the revolver is drawn as well as a
minimum liquidity covenant of at least $40 million. Moody's expects
the company to maintain sufficient cushion under these tests.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded with consistent revenue and EBITDA
growth, financial leverage sustained below 5x, free cash flow to
debt in the mid-single-digit range and solid liquidity.
The ratings could be downgrade with revenue or profitability
declines, free cash flow to debt sustained at break even or
negative levels, or weak liquidity.
STRUCTURAL CONSIDERATIONS
The B3 ratings for senior secured credit facilities reflect a B3-PD
Probability of Default Rating (PDR) and a Loss Given Default (LGD)
assessment of LGD4. The facility ratings are consistent with the
CFR reflecting the preponderance of Verifone's capital structure,
with only a $75 million accounts receivable securitization facility
ranking above the secured facilities in the debt waterfall.
Borrowings under the credit facilities are secured by a first
priority security interest in substantially all tangible and
intangible assets and stock of the borrower, its domestic
subsidiaries and certain direct and indirect foreign subsidiaries
in the Republic of Ireland, the UK, Germany and Bermuda, as well as
65% of the capital stock of certain of the borrower's direct
foreign subsidiaries.
Verifone is a leading global provider of point-of-sale (POS)
systems and services to merchants and merchant acquirers, with
revenues of approximately $1,208 million for the LTM ended January
31, 2025, generated in over 150 countries. Verifone is owned by an
investor group led by Francisco Partners and British Columbia
Investment Management.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
VIRIDOS INC: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Viridos, Inc.
Synthetics Genomics Inc.
11149 N. Torrey Pines Road
La Jolla CA 92037
Business Description: Founded in 2005, Viridos, Inc. (formerly
known as Synthetic Genomics, Inc.) develops
a scalable microalgae platform to produce
low-carbon intensity biofuels for heavy
transportation sectors such as aviation and
commercial trucking. Backed initially by
ExxonMobil and holding over 100 patents, it
remains pre-revenue but projects oil yields
up to 20 times those of existing crops
and an associated 73–88 percent reduction
in
carbon emissions.
Chapter 11 Petition Date: April 14, 2025
Court: United States Bankruptcy Court
District of Delaware
Case No.: 25-10697
Judge: Hon. Craig T Goldblatt
Debtor's
Bankuptcy
Counsel: Morgan L. Patterson, Esq.
WOMBLE BOND DICKERSON (US) LLP
1313 N. Market Street, Suite 1200
Wilmington, DE 19801
Tel: (302) 252-4320
E-mail: morgan.patterson@wbd-us.com
Debtor's
Financial
Consultant: ROCK CREEK ADVISORS, LLC
Debtor's
Claims,
Noticing,
Solicitation
Agent and
Administrative
Advisor: STRETTO
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Eric Moellering as co-chief executive
officer.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/4SIKIQI/Viridos_Inc__debke-25-10697__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. HCP Life Science REIT, Inc. Real Property $413,058
Bank of America Lease
PO Box 51091
Los Angeles, CA 90074
Brittany Irwin
Email: BIrwin@healthpeak.com
2. SomaLogic Operating Co., Inc. Trade Debt $91,254
2945 Wilderness Place, Boulder,
CO 80301
Kasey Price
Tel: 303-625-9000
3. Fisher Scientific Company, LLC Trade Debt $74,411
Acct#004893-001, File #50129,
Los Angeles, CA 90074-0129
Porscha Dunn
Tel: 800-766-7000 ext. 0000
Email: Biocom.CS@thermofisher.com;
porscha.dunn2@thermofisher.com
4. Agilent Technologies, Inc. Trade Debt $55,923
PO Box 742108
Los Angeles, CA
90074-2108
Tel: 800-227-9770 ext.0000
Email: orders@agilent.com
5. Evotek, Inc. Trade Debt $53,211
462 Stevens Avenue, Suite 308,
Solana Beach, CA 92075
Tel: 805-791-5122
Email: sconway@evotek.com
6. Konica Minolta Trade Debt $35,985
Business Solutions USA Inc.
PO Box 100706
Pasadena, CA 91189-07
Tel: 877-451-1731 ext. 0000
Email: AMO@customerfinancing.com
7. Lockton Insurance Brokers, LLC Trade Debt $32,351
Dept LA 23878, Pasadena, CA
91185-3878
Tel: 858-587-3100 ext. 0000
Email: jwerner@lockton.com
8. UnitedHealthcare of Trade Debt $31,434
California (UHIC)
PO Box 843118
Los Angeles, CA 90084-3118
9. Donnelley Financial, LLC Trade Debt $28,455
PO Box 830181
Philadelphia, PA 19182-0181
Tel: 858-587-8452 ext. 0000
Email: accounts-receivable@dfinsolutions.com
10. Imperial County Treasurer - Tax $22,295
Tax Collector
940 W Main St, Suite 106, El
Centro, CA 92243-2864
Karen Vogel
11. Airgas West USA LLC Trade Debt $22,054
PO Box 102289
Pasadena, CA 91189-2289
Fabian Arreola
Tel: 858-279-8200 ext. 0000
Email: Fabian.arreola@airgas.com
12. Integrated DNA Trade $20,228
Technologies, Inc.
1710 Commercial Park,
Coralville, IA 52241
Tel: 800-328-2661 ext. 0000
Email: keyaccounts@idtdna.com
13. San Diego Gas & Electric Trade Debt $19,003
PO Box 25111, Santa Ana, CA
92799-5111
14. Beckman Coulter, Inc. Trade Debt $17,836
Dept. CH 10164, Palatine, IL
60055-0164
Tel: 800-742-2345 ext. 0000
Email: lsorders@Beckman.com
15. Azenta US, Inc. Trade Debt $16,566
2910 Fortune Circle West, Suite E,
Indianapolis, IN 46241-5502
Debraj Chatterjee
Tel: 317-390-1866
Email: debraj.chatterjee1@azenta.com
16. ScaleMatrix Hosting, Inc. Trade $16,456
5775 Kearny Villa Road
San Diego, CA 92123
Tel: 858-633-4363 ext. 0000
17. Core Informatics, LLC Trade Debt $14,419
36 E Industrial Road, Second
Floor, Branford, CT 06405
Debbie Zimmerman
Tel: 203-643-8099 ext. 0000
Email: finance@coreinformatics.com
18. SecureDocs, Inc. Trade Debt $9,240
1360 Post Oak, Suite 2200,
Houston, TX 77056
Tel: 866-700-7975 ext. 0000
Email: securedocs.billing@onit.com
19. Williams Scotsman, Inc. Trade Debt $9,122
PO Box 91975
Chicago, IL 60693-1975
Tel: 480-719-5639
Email: AccountsReceivable@willscot.com
20. Florida Scientific Trade Debt $8,922
dba 2mag-USA
PO Box 214769
Daytona Beach,
FL 32121-4769
Email: order@2magUSA.com
VISION2SYSTEMS LLC: Committee Taps Vision2systems LLC as Attorney
-----------------------------------------------------------------
The official committee of unsecured creditors of Vision2systems LLC
seeks approval from the U.S. Bankruptcy Court for the Northern
District of Texas to employ Munsch Hardt Kopf & Harr, P.C. as its
attorneys.
The firm will render these services:
a. give legal advice to the Committee with respect to its
rights, powers, and duties as the Committee in the Bankruptcy Case;
b. assist and advise the Committee in its consultations with
the Debtor relative to the administration of the Bankruptcy Case;
c. assist with the Committee's investigation of the acts,
conduct, assets, liabilities, and financial condition of the Debtor
and of the operation of the Debtor's business and any other matters
relevant to the Bankruptcy Case;
d. assist the Committee in its analysis of and negotiations
with the Debtor or any third-party concerning matters related to,
among other things, the terms of sales, potential litigation, a
plan of reorganization or liquidation, or other conclusion of the
Bankruptcy Case;
e. prepare on behalf of the Committee all motions,
applications, answers, orders, reports, and other legal papers and
documents to further the Committee's interests and objectives;
f. assist the Committee in requesting the appointment of a
trustee or examiner, should such action become necessary;
g. represent the Committee at all hearings and other
proceedings in the Bankruptcy Case;
h. review and analyze all applications, orders, statements of
operations, and schedules filed with the Court and advise the
Committee accordingly; and
i. perform all other legal services and provide all other
legal advice to the Committee as may be required or deemed to be in
the interests of the Committee in accordance with the Committee's
powers and duties as set forth in the Bankruptcy Code.
The firm will be paid at these rates:
Thomas D. Berghman, Shareholder $600 per hour
Jacob J. King, Associate $400 per hour
Heather Valentine, Paralegal $235 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The following is provided in response to the request for additional
information contained in Paragraph D.1 of the U.S. Trustee
Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No, other than reduced hourly rates.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition period. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Response: Munsch Hardt did not represent the Committee or any of
its members prior to March 18, 2025.
Question: Has your client approved the prospective budget and
staffing plan, and if so, for what budget period?
Response: As the Committee was only formed on March 13, 2025,
and Munsch Hardt was only retained on March 18, 2025, Munsch Hardt
cannot estimate a budget at this time, but will develop a budget
and staffing plan to reasonably comply with any request for
information and additional disclosures from the U.S. Trustee, as to
which Munsch Hardt reserves all rights. The Committee has approved
Munsch Hardt's proposed hourly billing rates.
Mr. Berghman disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Thomas D. Berghman, Esq.
Jacob J. King, Esq.
MUNSCH HARDT KOPF & HARR, P.C.
500 N. Akard Street, Suite 4000
Dallas, TX 75201-6605
Telephone: (214) 855-7500
Facsimile: (214) 855-7584
Email: tberghman@munsch.com
Email: jking@munsch.com
About Vision2systems LLC
Vision2Systems LLC founded in 2012, is a software company based in
Dallas, Texas, that provides online giving and membership
management platforms tailored for churches. The platform offers
solutions for accounting, donations, event planning, and overall
church management.
Vision2Systems LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40583) on February
19, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by Jason P. Kathman, Esq., at SPENCER
FANE.
VOBEV LLC: Seeks to Extend Plan Exclusivity to June 9
-----------------------------------------------------
Vobev, LLC, asked the U.S. Bankruptcy Court for the District of
Utah to extend its exclusivity periods to file a plan of
reorganization and obtain acceptance thereof to June 9 and August
8, 2025, respectively.
The Debtor explains that it has been extremely vigilant in this
case and has made significant progress toward having this case end
with a successful outcome. Indeed, the Debtor has filed the Current
Plan, and fully intends on prosecuting the Current Plan to
confirmation. If for some reason the Debtor determines that it
cannot proceed with the Current Plan and must file a new plan, it
will prosecute that plan and seek confirmation of it with similar
alacrity.
The Debtor claims that it has made significant progress in its
negotiations with creditors, including the Committee and Ares as is
evident by the Current Plan that is now on file.
The Debtor asserts that it has not filed this Motion in order to
pressure creditors. In fact, the Debtor fully intends on going
forward with the Current Plan, and believe that the Current Plan
will be confirmed. This Motion has only been filed out of an
abundance of caution.
The Debtor has demonstrated substantial (and perhaps even
remarkable) progress toward analyzing, resolving, and dealing with
issues in this case that must be addressed in order to confirm a
Chapter 11 plan as should be evident from the Current Plan that is
on file in this case. Extending the Debtor's exclusivity periods to
June 9 (to file a plan) and August 8 (to obtain confirmation of a
plan) will not materially prejudice the interests of creditors and
other interested parties. Finally, the Debtors are not requesting
an extension to gain a tactical advantage over any of its
creditors.
Counsel to the Debtor:
Michael R. Johnson, Esq.
Jeffrey W. Shields, Esq.
David H. Leigh, Esq.
Mel Jones-Cannon, Esq.
RAY QUINNEY & NEBEKER, P.C.
36 South State Street, 14th Floor
Salt Lake City, Utah 84111
Tel: (801) 532-1500
(801) 323-3363
Email: mjohnson@rqn.com
Email: jshields@rqn.com
Email: dleigh@rqn.com
Email: mjonescannon@rqn.com
-and-
Eric P. Schriesheim, Esq.
ROPES & GRAY LLP
191 North Wacker Drive
Chicago, Illinois 60606
Tel: (312) 845-1200
Fax: (312) 845-5500
Email: eric.schriesheim@ropesgray.com
- and -
Gregg M. Galardi, Esq.
ROPES & GRAY LLP
1211 Avenue of the Americas
New York, New York 10036
Tel: (212) 596-9000
Fax: (212) 596-9090
Email: gregg.galardi@ropesgray.com
About Vobev LLC
Vobev LLC, a Salt Lake City-based beverage can manufacturer, sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Utah
Case No. 24-26346) on Dec. 9, 2024. In its petition, the Debtor
disclosed between $500 million and $1 billion in both assets and
liabilities.
Bankruptcy Judge Joel T. Marker handles the case.
The Debtor tapped Ray Quinney & Nebeker PC as counsel, Houlihan
Lokey Capital, Inc. as investment banker, and FTI Consulting, Inc.
as financial advisor. Kroll Restructuring Administration LLC is
the Debtor's claims and noticing agent.
WASKOM BROWN: Case Summary & Seven Unsecured Creditors
------------------------------------------------------
Debtor: Waskom Brown & Associates, LLC
816 University Parkway
Natchitoches, LA 71457
Business Description: Waskom Brown & Associates, LLC is a full-
service accounting and financial advisory
firm based in Natchitoches, Louisiana. The
firm provides tax planning, bookkeeping,
estate planning, and business consulting
services, with additional offices in
Pineville, Many, and Winnfield.
Chapter 11 Petition Date: April 15, 2025
Court: United States Bankruptcy Court
Western District of Louisiana
Case No.: 25-80219
Judge: Hon. Stephen D Wheelis
Debtor's Counsel: Bradley L. Drell, Esq.
GOLD, WEEMS, BRUSER, SUES & RUNDELL, A PLC
Post Office Box 6118
Alexandria LA 71307-6118
Tel: (318) 445-6471
Fax: (318) 445-6476
E-mail: bdrell@goldweems.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by David A. Waskom as manager/CEO.
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/X2WS5KA/Waskom_Brown__Associates_LLC__lawbke-25-80219__0001.0.pdf?mcid=tGE4TAMA
WATERHOUSE CONSTRUCTION: Unsecureds to Split $6K in Plan
--------------------------------------------------------
Waterhouse Construction, LLC, filed with the U.S. Bankruptcy Court
for the Southern District of Florida a Plan of Reorganization under
Subchapter V dated March 18, 2025.
The Debtor is a related company to a manufacturer of custom kitchen
cabinets, vanities and closets and the holder of the leasehold
interest of the business premises.
The Plan Proponent's financial projections show that the Debtor
will have sufficient projected disposable income to make all
payments under the Plan.
The final Plan payment is expected to be paid on or before the
expiration of 24 months from the Effective Date and will be funded
primarily from pass through rent payments from the Debtor's
affiliate which occupies the premises and loans or capital from the
Debtor's principal, Carlos de Leon.
This Plan proposes to pay Allowed Claims no less than the value of
Waterhouse's projected Net Disposable Income for a period of 24
months. The Plan provides for 4 Classes of creditor claims
(including priority, secured, and unsecured) and one Class of
Equity interests.
Class 3 consists of Allowed General Unsecured Claims. The
Reorganized Debtor will make a pro rata distribution in amount of
$1,500.00 quarterly in Year 2026 (for a total payment to Class 3 in
the amount of $6,000.00. Class 3 is Impaired and entitled to vote.
Class 4 consists of Equity Interests of Carlos de Leon in
Waterhouse. On the Effective Date, the Equity Interests will be
retained in the same amounts and character as they were held prior
to the Petition. Class 4 is deemed to accept and not entitled to
vote.
On the Effective Date, all property of the Debtor not otherwise
disposed of under the Plan, shall vest with the Reorganized
Debtor.
The Plan proposes to pay Allowed Claims to be paid under the Plan
from pass through rent paid by the Debtor's affiliate which
occupies the premises and contributions from Mr. De Leon.
The Reorganized Debtor will have no revenue to fund the Plan,
except for the pass through rent from its affiliate. As such, Mr.
De Leon has committed to contributing such sums required to fund
cash shortfalls. The net proceeds of said financing (after
allocation of costs and taxes) will be used to make a distribution
to Allowed Claimholders equal to the balance due to Class 3 as
shown in the projections.
A full-text copy of the Plan of Reorganization dated March 18, 2025
is available at https://urlcurt.com/u?l=JTf0dB from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Jacqueline Calderin, Esq.
Agentis PLLC
45 Almeria Avenue
Coral Gables, FL 33134
T. 305.722.2002
About Waterhouse Construction
Waterhouse Construction, LLC is a related company to a manufacturer
of custom kitchen cabinets, vanities and closets and the holder of
the leasehold interest of the business premises.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-23275) on December
19, 2024, with $0 to $50,000 in assets and liabilities.
Judge Robert A. Mark presides over the case.
Jacqueline Calderin, at Agentis PLLC, is the Debtor's legal
counsel.
WAYNE HEALTHCARE: Fitch Alters Outlook on 'BB+' IDR to Positive
---------------------------------------------------------------
Fitch Ratings has affirmed Wayne Healthcare's (WH) Issuer Default
Rating (IDR) at 'BB+' and the series 2019A hospital revenue bonds
issued by Darke County (OH) on behalf of WH at 'BB+'.
The Rating Outlook has been revised to Positive from Stable.
Entity/Debt Rating Prior
----------- ------ -----
Wayne Healthcare (OH) LT IDR BB+ Affirmed BB+
Wayne Healthcare (OH)
/General Revenues/1 LT LT BB+ Affirmed BB+
Affirmation of the 'BB+' rating reflects WH's low leverage and
strong liquidity, despite three successive years of operating
deficits from fiscal years 2022 through 2024 (unaudited) caused
largely by industry-wide pressures. The rating also reflects WH's
solid pre-pandemic operating history and adroit management of
partnerships with larger organizations outside its primary service
area (PSA).
Revision of the Outlook to Positive factors in the recent
conversion of WH's regulatory status to a critical access hospital
(CAH) in June 2024 from an acute care hospital previously, which
resulted in markedly improved fiscal operations for full-year FY
2024. The Outlook revision is partly predicated on Fitch's
expectation that WH will produce positive operations in FY 2025 and
beyond because of its conversion to CAH status, which now affords
WH significantly higher Medicare reimbursement rates.
WH's average daily census averaged around nine inpatients for the
past five years. A low daily census was the main factor which
prompted management to pursue a conversion to CAH status,
particularly after CMS rule changes positioned WH to qualify.
Conversion to a CAH allowed WH to begin receiving cost-based
reimbursement from Medicare in 3Q 2024. On a full-year basis, this
should provide for a $15 million to $25 million increase to annual
revenues compared to FY 2023 levels with the same patient volumes.
Medicare and Medicaid combined have historically made up 75%-80% of
WH's payor mix. Following the change to CAH status in 2024,
Medicare and Medicaid accounted for 68.7% of operating revenues for
full-year FY 2024. Management expects higher reimbursements to
restore WH's operating EBITDA margin to levels more consistent with
pre-pandemic performance (i.e. around 10%-12%) in FY 2025. Modest
all fixed rate leverage and healthy liquidity provide WH with
flexibility at the current rating level until operations improve.
Fitch expects WH's accretive clinical and service line growth in
cancer and orthopedics to support continued operating improvements,
following FY 2024's material, $15.4 million positive swing in
operating revenues. WH will realize the full, annualized financial
benefits of its conversion in FY 2025. WH did not meet its 1.2x
debt service coverage (DSC) covenant in FY 2023 and was obliged to
pursue a waiver from the bondholders, which was granted. Fiscal
2024 operating performance was sufficiently improved to exceed WH's
DSC covenant. Coverage was 3.2x by operating EBITDA for FY2024
despite the hospital having only six months of CAH status.
SECURITY
The bonds are secured by a pledge of security interest on the gross
receipts of the obligated group, a mortgage lien on the hospital
and a debt service reserve fund.
KEY RATING DRIVERS
Revenue Defensibility - 'bb'
Competitive and Narrow Primary Market; Improving Payor Mix
WH has historically had weak revenue defensibility due to being
situated in a relatively competitive market and having a weak payor
mix. Despite holding a near-leading PSA market share position of
almost 28% in 2024, WH faces stiff competition from other hospitals
in its broader service area, with four similarly sized hospitals
and two larger hospitals operating within 40 miles of WH. WH's
largest direct competitor in its PSA is Miami Valley Health with a
28.5% market share in 2024.
Prior to 2024, WH's payor mix was weak with Medicaid and self-pay
averaging between 28% and 33% of gross revenues. Medicare typically
accounts for 53% of WH's gross revenues. Commercial payors
historically made up about 15% of gross revenues on average.
Following WH's conversion to a CAH in June 2024, its share of gross
revenues originating from Medicaid fell to 15.7% from 25.2% in
2023. Together, Medicaid and self-pay accounted for 19.7% of gross
revenues in 2024 compared to 28% in 2023.
Government payors (Medicare and Medicaid combined) still account
for approximately 68% of revenues, but this represents an
improvement from an average of 80% of revenues prior to the CAH
conversion. WH is aligned with Premier Health, which holds a 1/3
ownership interest in the hospital and has three seats on WH's
14-member board.
Operating Risk - 'bb'
Revenue and Inflation Pressures Abating; Operations Set to
Materially Strengthen
Fitch scores WH's operating risk assessment as 'Weak' due to its
recently elevated labor and supply expenses relative to total
revenues, which deteriorated in FY 2022 and remained constrained in
FY 2023. Total revenues improved by $3.6 million in FY 2023,
supported by management's initiatives to reduce WH's use of agency
staff employment and purchased services. An orthopedic surgery
joint venture that WH entered in 2023 also contributed to higher
revenues in FY 2023 and 2024. Despite achieving stronger operations
in FY 2023, WH's patient revenues were still outpaced by the
hospital's growing expense base as salaries, wages, and benefits
costs remained elevated at 59.3% of revenues. WH's fiscal 2023
operating EBITDA and EBITDA were (2.2%) and 0.6%, respectively.
WH's conversion to CAH status in June 2024, coupled with its
continued focus on growing joint venture revenues, resulted in a
$15.4 million positive revenue swing in FY 2024, boosting revenues
to just under $83 million from $67.6 million in FY 2023 (22.8% YOY
growth). Management had estimated a $9 million revenue increase for
FY 2024 assuming WH would have CAH status for only one quarter of
2024, with a full-year projected revenue increase of $15 million in
FY 2025 vs. FY 2023 levels. That WH realized $15 million of revenue
growth after only six months of CAH status is well above WH's prior
estimates. WH realized a (1.1%) operating margin (-$1.48 million
net income), 11.3% operating EBITDA margin ($9.4 million positive
cash flow) and 16.1% EBITDA margin in FY 2024.
Considering FY 2024's improved operating performance, WH management
adjusted its projections for FY 2025 and beyond. WH now anticipates
revenues expanding to $86.9 million in FY 2025 and $91.1 million in
FY 2026, respectively, compared to prior estimates of $85.4 million
and $86.9 million forecast in early 2024. Fitch anticipates that
WH's successful conversion to CAH status will allow WH to restore
operations to levels more consistent with its pre-pandemic
performance in the near-term. WH is also exploring the potential
for new revenues from the 340b pharmacy program and rural health
clinic reclassifications. Due to its conversion to a CAH, WH is
eligible to join the 340b program. Management plans to apply for
entry in July 2025.
Even under Fitch's conservative forward-looking stress case
scenario analysis, which applies revenue and portfolio stresses
aligned with current macro conditions, WH's operating EBITDA is
likely to be restored to at least 9% over the next five fiscal
years assuming stable volumes and operating performance. At those
levels, operating EBITDA would be more than adequate to support
higher debt service coverage and material balance sheet
improvement, which could support an investment grade rating.
WH's modest capital spending plans should support this outcome,
provided clinical initiatives remain successful and patient volumes
continue to grow, particularly outpatient and specialty service
line volumes. Planned capital spending is mostly routine over the
next few years, including equipment and IT-related spending,
averaging 50%-75% of depreciation. WH has no new debt plans through
2029.
Since FY 2022, WH has ramped up its orthopedic and cardiology
service lines. Orthopedic surgeries, in particular, have increased,
growing to 792 procedures in 2024 from 555 in 2023. WH management
expects these initiatives to contribute to stronger revenue growth
in 2025 and beyond. On the expense side, use of agency staff has
become more manageable at about half peak levels, with 12 reported
agency staff in 2024 compared to 27 in 2023.
Financial Profile - 'bbb'
Modest Leverage Coupled with Adequate Liquidity
Fitch expects WH to maintain healthy balance sheet metrics
throughout Fitch's forward-looking analysis. WH's financial
position was weakened somewhat by two large, back-to-back operating
losses in fiscals 2022 and 2023, but liquidity has remained sound,
particularly in comparison to WH's modest leverage. WH's net
adjusted debt-to-adjusted EBITDA metric was -2.9 for FY 2024
(unaudited) based on draft financials shared with Fitch. Net
adjusted debt-to-adjusted EBITDA remains favorably negative through
the five-year time horizon of both Fitch's base and stress case
forward-looking scenarios.
WH's unrestricted reserves were $85.8 million at FYE 2024
(unaudited) providing for 416 days cash on hand and approximately
190% cash-to-adjusted debt. These cash and leverage metrics remain
fully in line with a midrange financial profile assessment as
determined by Fitch. WH currently has $45.9 million of fixed rate
debt outstanding.
WH's maximum annual debt service (MADS) was $2.92 million in FY
2024, resulting in 3.2x coverage by operating EBITDA. This coverage
represented a significant improvement from FY 2023, when coverage
was less than 1.0x -- a debt service covenant violation. Management
petitioned WH's bondholders for a temporary covenant waiver for FY
2023, which bondholders granted. Based on management's projections
for FY 2025, WH should again be in full compliance with its 1.2x
debt service coverage covenant.
Fitch's stress case scenario suggests that MADS coverage should be
solid in FY 2025 if management's revenue and expense expectations
are met, regardless of financial market conditions that remain
exceptionally volatile. However, under both Fitch's base and stress
case scenarios, debt service coverage is expected to remain at 2.0x
or stronger in all but one of the coming five years.
Asymmetric Additional Risk Considerations
There are currently no asymmetric additional risk considerations.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A significant decline in balance sheet liquidity without
commensurate growth in cash flow that leads to a cash-to-adjusted
debt metric that is sustained below 100%;
- Operating EBITDA margins sustained below 6%-7% for two to three
fiscal years once near-term operating performance stabilizes
following the CAH conversion process in FY 2024.
- WH could face negative rating pressure if economic conditions
materially weaken relative to Fitch's current Outlook or if other
factors materially constrain operating performance, leading a tepid
operating recovery over the next two to three fiscal years.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Operating EBITDA margins sustained at or above 8% for two or more
fiscal years, combined with a demonstrated period of reduced
operating volatility following the CAH conversion;
- Cash-to-adjusted debt that is sustained above 200% which, while
elevated relative to the minimum metric to achieve an
investment-grade rating, incorporates WH's size, payor mix,
competitive position and narrow market.
PROFILE
Wayne Hospital d/b/a as Wayne Healthcare is a 32 licensed bed
critical access hospital (CAH) located in Greenville, OH,
approximately 50 miles northwest of Dayton, OH. Due to its recent
conversion to CAH status, WH is capped at operating no more than 25
beds. WH's average patient census was nine over the past five
years. In fiscal 2023, WH had total operating revenues of $67
million. For fiscal 2024 (unaudited), WH had total operating
revenues of about $83 million. The obligated group consists of WH
and a professional services group, WHC Professional Services LLC.
Non-obligated affiliates are included in WH's consolidated
financial statements and are not material.
As of April 2017, WH and Premier Health (A-/Negative) signed an
affiliation agreement for the purposes of collaboration between the
two entities. The intent of the collaboration is to enhance
resource development for new facilities and programs, to maintain
and provide medical services for the underserved, and to further
collaboration and integration between WH and Premier Health.
As part of the agreement, Premier Health purchased a 33.3%
ownership position in WH for $13 million and has the right to
appoint six of the 18 members on WH's board of directors (Premier
currently holds three of 14 seats on WH's board). Premier Health
does not collect yearly earnings from WH. The affiliation agreement
with Premier allows WH three options at the end of the term: become
a party to Premier Health's joint operating agreement; pursue
another agreement with Premier Health; or terminate the
affiliation. Premier Health is not obligated on WH's debt and does
not guarantee the debt. The affiliation agreement's term runs
through April 2029.
A termination by WH of its affiliation agreement with Premier
Health at the end of its current term would result in a repayment
to Premier Health, but Fitch does not view it as an asymmetric risk
at this time. If WH elects to end their affiliation with Premier
Health a buyout price will be negotiated based on a determined fair
market value.
Sources of Information
In addition to the sources of information identified in Fitch's
applicable criteria specified below, this action was informed by
data from Lumesis.
ESG Considerations
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.
WELLPATH HOLDINGS: Secures Global Settlement, Plans Chapter 11 Exit
-------------------------------------------------------------------
Georgi Azar of Bloomberg Law reports that Wellpath Holdings has
secured a global settlement with its Unsecured Creditors' Committee
and Ad Hoc Lender Group, clearing the path for a consensual Plan of
Reorganization. The settlement resolves previous objections, and
the Committee is now recommending that all general unsecured
creditors vote in favor of the revised plan before the April 22,
2025 deadline.
Backed by broad stakeholder support and a reduced debt load, the
company is preparing to exit Chapter 11, with a confirmation
hearing set for April 30, 2025, according to Bloomberg Law.
Wellpath filed for bankruptcy and is pursuing a sale of its
Recovery Solutions business, the report states.
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.
WHITEWATER WHISTLER: S&P Downgrades ICR to 'BB', Outlook Stable
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on WhiteWater
Whistler Holdings LLC's (WWWH) to 'BB' from 'BB+'.
S&P said, "At the same time, we lowered our issue-level rating on
the company's senior secured term loan to 'BB' from 'BB+' and
revised our recovery rating to '3' from '4'. The '3' recovery
rating indicates our expectation for meaningful (50%-70%; rounded
estimate: 65%) recovery in the event of a default.
"The stable outlook reflects our expectation that WWWH's
proportionally consolidated leverage will remain above 7x in 2025
and 2026 as it works to complete the construction of its Permian
natural gas pipelines. We expect the company will materially reduce
its proportionally consolidated leverage following the completion
of these two expansion projects.
"The downgrade reflects our expectation that WWWH's proportionately
consolidated leverage will remain elevated due to the long lead
time for its capital-intensive growth projects. WWWH and its
partners are advancing the construction of a natural gas pipeline
extending to the Rio Grande LNG facility. Separately, the company
also agreed to construct the Blackcomb and Traverse pipeline
system, which will span an area of approximately 525 combined miles
and supply gas from west Texas to the Katy area and south Texas. To
reflect these announcements, we revised our forecast to incorporate
the aggressive capital spending and debt funding necessary for WWWH
to achieve its proposed fourth quarter of 2026 in-service dates for
the projects. This aggressive capital spending, although temporary,
will likely pressure the company's S&P Global Ratings-adjusted
metrics through 2026 because it won't begin to receive cash flows
from the projects until they become operational. However, based on
our current analysis, we believe the timing of WWWH's future cash
flows will enable it to materially deleverage, on a proportionately
consolidated basis, as early as 2027.
"We proportionally consolidate WWWH's ownership stakes in Whistler,
Whistler's subsidiaries, and Rio Bravo in our adjusted credit
metrics. The company maintains ownership stakes of approximately
50.6% in the Whistler and Rio Bravo pipelines, 35.4% in ADCC, and
35.4% in Blackcomb and Traverse. We believe WWWH has material
control of these various subsidiaries, thus we proportionally
consolidate its credit measures based on its ownership stakes in
those natural gas pipelines in the Permian. While we recognize that
any forecasted or existing debt at these entities is non-recourse
to WWWH, we proportionally consolidate the debt to reflect the
company's relative control over the assets and our view that they
are strategic to its business. The other partners of its operating
assets have certain voting rights that limit the company's ability
to fully dictate the financial policy of its asset base. For
example, WWWH's subsidiaries cannot issue debt that would cause
each respective subsidiary's debt to EBITDA to exceed 6x or approve
a bankruptcy, among certain other items, without its partners'
approval.
"Our base-case forecast assumes the company completes the announced
natural gas Permian pipelines on time and on budget; however, we
believe these pipelines--like any new large-scale project--face the
potential for delays or cost overruns. WWWH began construction on
these pipelines in the second half of fiscal year 2024 and
anticipate they will become operational in the fourth quarter of
2026. We expect the company's proportionally consolidated leverage
will remain above 7x until it brings the pipelines online and they
start generating cash, at which time we anticipate it will likely
quickly deleverage. In addition, we do not expect the consolidated
company will fund additional growth initiatives using incremental
debt or debt-like instruments that would further weaken its credit
metrics or cause its leverage to remain above 7x for a
longer-than-anticipated period.
"Our stable outlook reflects our expectations of construction on
the two expansion projects being on time and on budget, as well as,
the predictability and stability of WhiteWater Whistler Holdings,
LLC's (WWWH) cash flows due to its significant percentage of
contracted volumes. We expect S&P Global Ratings-adjusted Debt to
EBITDA will improve from the mid 7x area in 2025 and 2026 to under
5x by the end of 2027 following the completion of the expansion
projects."
S&P could consider a negative rating action if consolidated
leverage is expected to be greater than 7.5x at the end of 2025 or
above 5.5x on a Q4 annualized basis by the end of 2026. This could
occur if:
-- The company faces delays or cost overruns with the construction
of either expansion project, resulting in consolidated leverage
being higher than our expectations.
-- The company pursues a more aggressive financial policy,
including funding new growth initiatives through incremental debt
or debt-like instruments
S&P could consider a positive rating action if WWWH achieves an
adjusted debt‐to‐EBITDA ratio of below 5.5x on a consistent
basis and is expected to maintain this for the long-term. This
would also require:
-- The company completing the expansion projects on-time and
without issue such that EBITDA generation is in line with or better
than S&P's forecast and;
-- The company indicates a financial policy that is supportive of
consolidated leverage maintaining below 5x for the long-term.
WOLYNIEC CONSTRUCTION: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------------
The U.S. Trustee for Region 3 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Wolyniec Construction, Inc.
About Wolyniec Construction Inc.
Established in 1961, Wolyniec Construction, Inc. is a general
contracting firm based in Williamsport, Pa. It specializes in both
residential and commercial concrete construction, offering services
such as driveways, curbs, walkways, stairs, ponds, streetscaping,
parking lots, concrete repair, and resurfacing.
Wolyniec sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Pa. Case No. 25-00881) on March 31, 2025, listing
up to $10 million in both assets and liabilities. Steve Schenck,
president of Wolyniec, signed the petition.
Robert E. Chernicoff, Esq., at Cunningham, Chernicoff & Warshawsky,
P.C., represents the Debtor as legal counsel.
WORKSPORT LTD: Registers Additional 329K Shares for Equity Plan
---------------------------------------------------------------
Worksport Ltd. disclosed in a Form S-8 Report filed with the U.S.
Securities and Exchange Commission that the Company effected a
1-for-10 reverse stock split, reducing the total number of
outstanding shares of common stock, par value $0.0001 per share,
including those available under the Worksport Ltd. 2022 Equity
Incentive Plan.
The Plan contains an evergreen provision, which automatically
adjusts the share reserve on January 1 of each year to equal 15% of
the total outstanding shares as of December 31 of the prior year.
As a result of this provision and the Split, the total number of
shares available under the Plan, after adjustments, is 600,433
post-split shares, of which 251,851 shares of common stock were
previously registered under the Company's prior Form S-8
registration statement filed with the Securities and Exchange
Commission on April 14, 2023. This Form S-8 registers an additional
329,100 post-split shares of common stock to ensure compliance with
the Plan's updated share reserve and facilitate the continued
issuance of equity awards to eligible participants.
About Worksport Ltd.
West Seneca, N.Y.-based Worksport Ltd., through its subsidiaries,
designs, develops, manufactures, and owns intellectual property on
a portfolio of tonneau cover, solar integration, portable power
station, and NP (Non-Parasitic), Hydrogen-based green energy
products and solutions for the automotive aftermarket accessories,
power storage, residential heating, and electric vehicle-charging
industries.
Buffalo, N.Y.-based Lumsden & McCormick, LLP, the Company's auditor
since 2022, issued a "going concern" qualification in its report
dated Mar. 27, 2025, attached to 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 and has an
accumulated deficit, that raise substantial doubt about its ability
to continue as a going concern. The Company recorded a net loss of
$16,163,789 for the year ended December 31, 2024, and has an
accumulated deficit of $64,476,966 as of December 31, 2024.
As of Dec. 31, 2024, the Company had $25,736,660 in total assets,
$8,323,029 in total liabilities, and a total stockholders' equity
of $17,413,631.
WORLD OF MISTRY: Seeks Subchapter V Bankruptcy in California
------------------------------------------------------------
On April 11, 2025, World of Mistry LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Central District
of California. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
About World of Mistry LLC
World of Mistry LLC is a single-asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
World of Mistry LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10602)
on April 11, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 milllion.
Honorable Bankruptcy Judge Victoria S. Kaufman handles the case.
The Debtor is represented byRon Bender, Esq. at LEVENE, NEALE,
BENDER, YOO & GOLUBCHIK L.L.P
WYNN TEC: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------
The U.S. Trustee for Region 3 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Wynn Tec, Inc.
About Wynn Tec Inc.
Wynn Tec Inc. is a small business corporation based in Loganton,
Pa.
Wynn Tec Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Pa. Case No. 25-00751) on March 21, 2025. In its
petition, the Debtor reported between $1 million and $10 million in
both assets and liabilities.
Judge Mark J. Conway handles the case.
The Debtor is represented by Robert E Chernicoff, Esq. at
Cunningham and Chernicoff PC.
XINYUAN REAL ESTATE: Creditors Seek Involuntary Ch. 11 Bankruptcy
-----------------------------------------------------------------
Steven Church of Bloomberg News reports that a group of creditors
is seeking to place Chinese developer Xinyuan Real Estate Co. Ltd.
into involuntary Chapter 11 bankruptcy in New York to recover $65.8
million from bonds that came due last year, according to a court
filing.
The petition, filed Monday, April 14, 2025, evening, was initiated
by bondholders Cithara Global Multi-Strategy, Mars Partner Limited,
and Star Freight & Trading Co., according to Bloomberg News
Xinyuan is one of many Chinese real estate firms that have
struggled with financial instability in recent years, the report
relays.
About Xinyuan Real Estate Co. Ltd.
Xinyuan Real Estate Co. Ltd., headquartered in Beijing, is a
residential real estate developer primarily focused on China's
tier-one and tier-two cities. Founded in 1997, the Company targets
middle-income homebuyers with large-scale, high-quality housing
projects and has extended its operations to the U.S., U.K., and
Malaysia. Xinyuan also offers property management and ancillary
services, and its shares trade on the New York Stock Exchange under
the ticker symbol XIN.
Creditors of Xinyuan Real Estate Co. Ltd. sought involuntary
petition under Chapter 11 of the U.S. Bankruptcy (Bankr. S.D.N.Y.
Case No. 25-10745) on April 14, 2025.
The Debtor is represented by Paul R. DeFilippo, Esq. at WOLLMUTH
MAHER & DEUTSCH LLP.
XTI AEROSPACE: Settles With Ex-CEO, Ends Consulting Deal
--------------------------------------------------------
XTI Aerospace, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company entered
into a settlement agreement with 3AM Investments LLC (an entity
controlled by Nadir Ali, the Company's former Chief Executive
Officer and a former director of the Company), Grafiti Group LLC
and Ali. The terms of the Settlement Agreement include:
Preferred Stock Redemption:
As previously disclosed, the Company and 3AM entered into that
certain securities purchase agreement dated as of March 12, 2024,
pursuant to which 3AM acquired 1,500 shares of the Company's Series
9 Preferred Stock, of which 1,164.12 shares of Series 9 Preferred
Stock were issued and outstanding as of March 27, 2025. Pursuant to
the Settlement Agreement, on the Effective Date, the Company will
deliver the aggregate amount of $1,251,651.26 by wire transfer of
immediately available funds to an account designated in writing by
Ali, for the redemption of the Outstanding Preferred Stock.
Following Ali's receipt of the Series 9 Redemption Amount, Ali will
no longer hold any shares of Series 9 Preferred Stock, and shall
cooperate with any reasonable request by the Company to execute any
document evidencing the transfer of the Outstanding Preferred Stock
back to the Company.
Termination of Ali Consulting Agreement:
The Settlement Agreement provides that effective as of the
Effective Date, that certain Consulting Agreement, dated March 12,
2024 by and between the Company and Ali is terminated, and in lieu
of the $2,775,000 that would be owed to Ali pursuant to the terms
of the Ali Consulting Agreement as a result of the termination of
such Ali Consulting Agreement prior to the 15 month anniversary of
the effective date thereof, the Company agreed:
(i) that the aggregate amount of $1,000,000 required to be
delivered by Grafiti Group pursuant to that certain Equity Purchase
Agreement, dated February 16, 2024, by and among the Company,
Grafiti LLC, and Grafiti Group, as amended, shall be deemed to be
satisfied in full and no further amounts shall be payable to the
Company by Grafiti Group or any of its affiliated parties pursuant
to the Equity Purchase Agreement;
(ii) to deliver a cash amount of $60,000 to Ali by wire
transfer of immediately available funds; and
(iii) to deliver $1,500,000 by wire transfer of immediately
available funds in three equal installments of $500,000 each on
June 30, 2025, September 30, 2025 and December 30, 2025.
Any Installment Amount that is not paid by the applicable due dates
will be subject to interest at a rate of 18% per annum. Upon
payment of the Outstanding Amount and the Deferred Amount in
accordance with the terms of the Settlement Agreement, the Ali
Advisory Fees shall be deemed to be satisfied in full and no
further amounts shall be payable by the Company to Ali or his
affiliated parties pursuant to the Ali Consulting Agreement.
Former Management Payments:
Pursuant to the Settlement Agreement, the Company agreed to pay the
Former Management Payments on the earlier of:
(a) the closing date of the Company's next financing
transaction and
(b) 30 days following the Effective Date of the Settlement
Agreement.
If for any reason the Former Management Payments are not paid by
the Former Management Payout Deadline, subject to a 10 day cure
period, the payment of the Deferred Amount in its entirety shall be
accelerated and become immediately due and payable. The "Former
Management Payments" comprise:
(i) an aggregate amount of $803,260.65 that, as of the
Effective Date, remains payable to the recipients of bonuses
payable pursuant to that certain Transaction Bonus Plan, adopted on
July 24, 2023 and as amended together with
(ii) an aggregate amount of $303,372.87 that, as of the
Effective Date, is payable to Wendy Loundermon, the Company's
former Chief Financial Officer and a former director of the
Company, pursuant to that certain Consulting Agreement, dated March
12, 2024, by and between the Company and Loundermon.
Ali Release:
As of the Effective Date, Ali, on behalf of himself and his former
and current affiliated entities, including 3AM, Grafiti LLC and
Grafiti Group agreed to release the Company and each of its former
and current subsidiaries, divisions, affiliates, predecessors,
successors, assigns, and its and their respective employees,
officers, directors, shareholders, members, partners, trustees,
joint venturers, attorneys, agents, and representatives, from and
with respect to any and all claims, demands, causes of action,
damages, obligations, liabilities, costs, and expenses of any kind
or nature whatsoever, arising out of any obligations of the Company
with respect to the Ali Consulting Agreement, the Series 9 Purchase
Agreement and the portion of the Bonus Plan relating to Ali,
whether known or unknown, foreseen or unforeseen, that the Ali
Parties, or any of them, ever had, now have, or may have against
the XTI Parties, or any of them, from the beginning of time through
and including the Completion Date. As used in the Settlement
Agreement, the term "Completion Date" means the date on which the
Company has delivered:
(i) the Series 9 Redemption Amount to Ali by wire transfer of
immediately available funds;
(ii) the Deferred Amount to Ali by wire transfer of immediately
available funds;
(iii) the Outstanding Amount to Ali by wire transfer of
immediately available funds;
(iv) the Former Management Payments to Loundermon and the
recipients of the Bonus Plan Payments by wire transfer of
immediately available funds.
XTI Release:
As of the Effective Date, the XTI Parties agreed to release the Ali
Parties from and with respect to any and all claims, demands,
causes of action, damages, obligations, liabilities, costs, and
expenses of any kind or nature whatsoever, arising out of any
obligations of the Ali Parties with respect to any obligation of
the Ali Parties in connection with the payment of the purchase
price as set forth in the Equity Purchase Agreement, the Ali
Consulting Agreement, the Series 9 Purchase Agreement and the
portion of the Bonus Plan relating to Ali, whether known or
unknown, foreseen or unforeseen, that the XTI Parties, or any of
them, ever had, now have, or may have against the Ali Parties, or
any of them, from the beginning of time through and including the
Completion Date.
The Settlement Agreement provides that it supersedes any prior
consents or agreements regarding the allocation of financing
proceeds for the payment of any obligations of the Company
described in the Settlement Agreement
.
About XTI Aerospace
XTI Aerospace, Inc. -- https://xtiaerospace.com -- is the parent
company of XTI Aircraft Company headquartered near Denver,
Colorado. XTI Aerospace is developing the TriFan 600, a vertical
lift crossover airplane (VLCA) that combines the vertical takeoff
and landing (VTOL) capabilities of a helicopter with the speed and
range of a fixed-wing business aircraft. The TriFan 600 is designed
to reach speeds of 345 mph and a range of 700 miles. Additionally,
the Inpixon (inpixon.com) business unit of XTI Aerospace is a
provider of real-time location systems (RTLS) technology with
customers around the world who use the Company's location
intelligence solutions in factories and other industrial facilities
to help optimize operations, increase productivity, and enhance
safety.
New York-based Marcum LLP, the Company's auditor since 2012, issued
a "going concern" qualification in its report dated April 16, 2024,
citing that the Company has a significant working capital
deficiency, has incurred significant losses, and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
As of Sept. 30, 2024, XTI Aerospace had $29.28 million in total
assets, $22.42 million in total liabilities, and $6.86 million in
total stockholders' equity.
YUNHONG GREEN: Delays 2024 10-K Filing Due to Burden of Preparation
-------------------------------------------------------------------
Yunhong Green CTI Ltd. filed a Notification of Late Filing on Form
12b-25 with the U.S. Securities and Exchange Commission, informing
that the preparation and review of the information required to be
presented in the Annual Report on Form 10-K for the period ending
December 31, 2024, would impose an undue burden on the Company.
About Yunhong Green
Barrington, Ill.-based Yunhong Green CTI Ltd develops, produces,
distributes and sells a number of consumer products throughout the
United States and in several other countries, and it produces film
products for commercial and industrial uses in the United States.
The Company's principal lines of products include Novelty Products
consisting principally of foil and latex balloons and related gift
items; and Flexible Films for food and other commercial and
packaging applications.
Yunhong reported a net loss of $235,000 for the 12 months ended
Dec. 31, 2023, compared to a net loss of $1.47 million for the 12
months ended Dec. 31, 2022.
Lakewood, Colorado-based BF Borgers CPA PC, the Company's former
auditor, issued a "going concern" qualification in its report dated
March 29, 2024, citing that the Company's significant operating
losses raise substantial doubt about its ability to continue as a
going concern.
The Company dismissed BF Borgers as its auditor after the firm and
its owner, Benjamin F. Borgers, were charged by the Securities and
Exchange Commission with deliberate and systemic failures to comply
with PCAOB standards in audits and reviews included in over 1,500
SEC filings from January 2021 through June 2023. The charges
included false representations of compliance with PCAOB standards,
fabrication of audit documentation, and false statements in audit
reports. Borgers agreed to a $14 million civil penalty and a
permanent suspension from practicing before the Commission.
The Company appointed Wolf & Company, P.C. as its new auditor,
effective April 1, 2024.
[] BOOK REVIEW: Transcontinental Railway Strategy
-------------------------------------------------
Transcontinental Railway Strategy, 1869-1893: A Study of
Businessmen
Author: Julius Grodinsky
Publisher: Beard Books
Softcover: 439 pages
List Price: $34.95
Review by Gail Owens Hoelscher
Order your personal copy at
http://www.beardbooks.com/beardbooks/transcontinental_railway_strategy.html
Railroads were pioneers of the American frontier. Union Pacific;
Central Pacific; Kansas and Pacific; Chicago, Rock Island and
Pacific; Chicago, Burlington and Quincy; Atchison, Topeka and Santa
Fe: these names evoke boom times in America, the excitement and
tumult of seemingly limitless growth and opportunity, frontiers to
tame, fortunes to be made. Railroads opened up vast supplies of
raw materials, agricultural products, metals, and lumber. The
public gain was incalculable: job creation, low-cost
transportation, acceleration of westward immigration, and
settlement of the frontier.
The building of the western railway system in the United States was
described at the time as "one of the greatest industrial feats in
the world's history." This book tells the story of the
trailblazers of the Western railway industry, men with a stalwart
willingness to take on extraordinary personal financial risk. As a
group, these initial railroad promoters were smart, bold,
tenacious, innovative, and fiercely competitive. Some were
cautious with their and their investors' money, some reckless. Most
met with financial setbacks, some with total failure, some time and
time again. They often sold out at great losses, leaving their
successors to derive the benefits later.
Bitter competition existed among these men. They fought to position
their "roads" in a limited number of mountain passes, rivers, and
valleys; and to chart routes which connected major production areas
with major consumption areas. They cajoled and begged almost anyone
for capital. They created and tried to defend monopolies. They
bullied each other, invaded each other's territories, and
retaliated against each other. They staged wage wars. They agreed
not to compete with each other, and bought each other out.
The book opens in May of 1869, just after the completion of the
first transcontinental route joining the Union Pacific Railroad and
the Central Pacific Railroad in Ogden, Utah. The companies'
long-term prospects were excellent, but right then they were
desperate for cash. Union Pacific alone was more than $15 million
in debt. Additional financing was proving scarce. By 1870, more
than 40 railroads were floating bonds, "at almost any price for
ready cash," wrote one contemporary observer. Still, funds were
raised and construction went on, both of transcontinental lines and
branch lines.
As railway lines in the West were built in relatively unsettled
areas, traffic was light and returns correspondingly low. To
increase business, the companies found ways to encourage population
growth along their routes. Much-needed funding came from
immigration services set up by the railways themselves.
Agricultural areas sprang up along the routes. Sometimes volume of
traffic expanded too fast, and equipment shortages and construction
delays occurred. Or, drought, recession, and low agricultural
prices meant more red ink.
This book takes the reader through the boom times and bust times of
the greatest growth of railways the world has ever seen. The author
uses a myriad of sources showing painstaking and creative research,
including contemporary news accounts; railway company financial
records and archives; contemporary industry journals; Congressional
records; and personal papers, letters, memoirs and biographies of
the main players.
It's a good, solid read.
Professor Julius Grodinsky was born in 1896 and died July 9, 1962,
in Philadelphia, Pennsylvania.
[] Husch Blackwell Takes Bankruptcy Partner Tara LeDay
------------------------------------------------------
National law firm Husch Blackwell announced April 14, 2025, the
expansion of its insolvency and commercial bankruptcy practice with
the addition of partner Tara LeDay, who joins the firm's Financial
Services & Capital Markets industry group. Based in Austin, Texas,
she joins the firm from Chamberlain, Hrdlicka, White, Williams &
Aughtry.
LeDay is an experienced litigator who focuses her practice on
restructuring, creditors' rights, collections, and bankruptcy. She
has a nationwide practice representing bankruptcy trustees,
creditors, and corporate and high-net-worth debtors.
"Tara is an exceptional attorney who brings energy and a forward
momentum -- she will be a terrific addition to our Texas bankruptcy
team," said Sverre Roang, leader of the firm's Financial Services
and Capital Markets industry group. "We anticipate a significant
and growing need to deepen our insolvency bench in the coming
years, and Tara will play a key role in that growth. We are
delighted she has joined our team at Husch Blackwell."
LeDay counsels taxing authorities, government entities, energy
companies, and real estate developers. She regularly represents
creditors in high-profile bankruptcy matters, including in some of
the largest real estate, retail, and oil and gas bankruptcies filed
across the country. She has practiced in bankruptcy courts in every
jurisdiction other than Alaska and Hawaii.
"Husch Blackwell has a well-respected bankruptcy practice in Texas,
specifically in Austin and Houston," LeDay said. "I'm eager to
build upon the firm's existing strengths and resources while also
expanding the firm's capabilities and profile nationally in
insolvency."
The American Lawyer has recognized Husch Blackwell among the top
100 law firms in the United States in its 2025 Am Law 100 rankings,
released April 15, ranking Husch Blackwell at No. 78.
*********
Monday's edition of the TCR delivers a list of indicative prices
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*********
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