/raid1/www/Hosts/bankrupt/TCR_Public/250421.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, April 21, 2025, Vol. 29, No. 110
Headlines
501 LINCOLN: Gets Interim OK to Use Cash Collateral
76 M: To Sell Kansas Property to Kansas Avenue or H Street
A/C DUCTOLOGIST: Linda Leali Named Subchapter V Trustee
AIMBRIDGE ACQUISITION: PSOIX Marks $742K Loan at 36% Off
ALEXA HOLDINGS: Seeks Chapter 11 Bankruptcy in North Carolina
ALL AMERICAN: Court Oks New Port Richey Sale to Dalton Krus
ALL SEASON: Kevin Neiman Named Subchapter V Trustee
AMERICAN IMPACT: Soneet Kapila Named Subchapter V Trustee
AMERICAN MARICULTURE: Gets Extension to Access Cash Collateral
AMERICAN ROCK: PSOIX Marks $500K Loan at 30% Off
ARCH THERAPEUTICS: Case Summary & 20 Largest Unsecured Creditors
BALDWIN INSURANCE: S&P Upgrades LT ICR to 'B' on Reduced Leverage
BAUSCH + LOMB: Fitch Hikes IDR to 'B', On Watch Evolving
BAUSCH HEALTH: Fitch Hikes Issuer Default Rating to 'CCC+'
BENFIELD REAL: M. O'Connor Named Successor Subchapter V Trustee
BLACKSTONE MORTGAGE: Fitch Lowers IDR to 'BB-', Outlook Stable
BOOST NEWCO: Fitch Puts 'BB' LongTerm IDR on Watch Positive
BRIGHT CARE: Gets Interim OK to Use Cash Collateral Until May 6
BURGESS BIOPOWER: Unsecureds to Get Nothing in Debt-for-Equity Plan
BVI HOLDINGS: S&P Withdraws 'CCC' Long-Term Issuer Credit Rating
CAROLINA PROUD: Ciara Rogers Named Subchapter V Trustee
CENTENNIAL HOUSING: Seeks to Extend Plan Exclusivity to May 27
CHIARO TECHNOLOGY: Chapter 15 Case Summary
CHICAGO BOARD OF EDUCATION: S&P Affirms GO Bonds Rating at 'BB+'
CINEMA MANAGEMENT: Court Extends Cash Collateral Access to May 20
COACH USA: Insurer Seeks Chapter 7 Case Coverage Clarification
CONSOLIDATED BURGER: Seeks Chapter 11 Bankruptcy in Florida
CONTROLADORA DOLPHIN: Voluntary Chapter 11 Case Summary
CONUMA RESOURCES: S&P Upgrades ICR to 'CCC+' on Debt Restructuring
CPIF LA ARTS: Court OKs Deal to Use Greyhawk's Cash Collateral
CREATIVEMASS HOLDINGS: Seeks Chapter 11 Bankruptcy in Delaware
CUTERA INC: Receives Court OK for Chapter 11 w/ Opt-Out Releases
DAV SUB: Katharine Battaia Clark Named Subchapter V Trustee
DAVIS AUTO: Court OKs Owensboro Sale to Blackliner Enterprises
DIAMOND SURFACES: Kathleen DiSanto Named Subchapter V Trustee
DOS POTRILLOS: Case Summary & One Unsecured Creditor
DPL LLC: S&P Raises Issuer Credit Rating to 'BB+', Outlook Stable
DR. JOHN C. DRAGON: Case Summary & 20 Largest Unsecured Creditors
EGZIT CORPORATION: Court Extends Cash Collateral Access to May 9
EL DORADO: Court Approves Fair Oak Ranch Property Sale
ELANCO ANIMAL: S&P Alters Outlook to Positive, Affirms 'BB-' LT ICR
ELEVATE TEXTILES: S&P Downgrades ICR to 'CCC+', Outlook Negative
ENFIELDS AUTO: Craig Geno Named Subchapter V Trustee
ENSONO INTERMEDIATE: S&P Alters Outlook to Pos., Affirms 'B-' ICR
ERO COPPER: S&P Upgrades ICR to 'B+', Outlook Stable
ES PARTNERS: Case Summary & Six Unsecured Creditors
EVCON RENTALS: Case Summary & Three Unsecured Creditors
EXELA TECHNOLOGIES: Gets Court Okay for $5MM Funding Amid DIP Talks
F21 OPCO: Can Retain Paul Weiss as Special Counsel in Ch. 11 Case
FAITH ELECTRIC: Gets Interim OK to Use Cash Collateral Until May 1
FASHIONABLE INC: Gets Interim OK to Use Cash Collateral
FEEDEX COMPANIES: Seeks to Sell Hutchinson Property at Auction
FELTRIM TUSCANY: Ruediger Mueller Named Subchapter V Trustee
FIRST ACCEPTANCE: A.M. Best Affirms C++(Marginal) FS Rating
FOUR HATS: Seeks Chapter 11 Bankruptcy in Georgia
FRANCIS TRUST: Section 341(a) Meeting of Creditors on May 13
GLOBAL CLEAN ENERGY: Seeks Chapter 11 Bankruptcy in Texas
GLOBAL CLEAN: Files Chapter 11 With $100 Million DIP Loan
GRAND AUGUSTA: Seeks Chapter 11 Bankruptcy in Nevada
GUNNISON VALLEY: Seeks to Extend Plan Exclusivity to June 26
HARLING INC: Robert Handler Named Subchapter V Trustee
HERTZ GLOBAL: Aims to Increase Debt to Strengthen Balance Sheet
HOOK PARK: Fitch Assigns 'BB+(EXP)sf' Rating on Class E Notes
HRM DETROIT: Case Summary & Two Unsecured Creditors
HUDSON'S BAY: To Auction Art and Artifacts in CCAA Process
IR4C INC: Court Extends Cash Collateral Access to May 15
IRECERTIFY: Seeks to Extend Plan Exclusivity to August 4
IVANTI SOFTWARE: PSOIX Marks $628K Loan at 26% Off
IVESTER'S TREE: Seeks Subchapter V Bankruptcy in Utah
J.D. SAC CONSULTING: Case Summary & 20 Top Unsecured Creditors
JASMINE R ELMORE: Gets Extension to Access Cash Collateral
KATE QUINN: Gets Final OK to Use Cash Collateral
KYLE CHAPMAN: Court Extends Cash Collateral Access to May 31
LAZARUS INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors
LINDO HOLDINGS: Seeks Chapter 11 Bankruptcy in California
LITIGATION PRACTICE: Successor, Ch.11 Trustee Resolve Payment Fight
LODGING ENTERPRISES: Plan Exclusivity Period Extended to May 26
MAGNATE CORP: Gets Court OK to Use Cash Collateral
MAGNATE CORP: Michael Markham Named Subchapter V Trustee
MAINE CRAFT: Tanya Sambatakos Named Subchapter V Trustee
MANE SOURCE: Gets Interim OK to Use Cash Collateral
MARSHALL MEDICAL: Fitch Affirms 'BB+' IDR, Outlook Stable
MEDICAL SOLUTIONS: PSOIX Marks $731K Loan at 29% Off
MILLERKNOLL INC: S&P Rates Secured Revolving Credit Facility 'BB+'
MISS BRENDA: Geoff Groshong Named Subchapter V Trustee
MISSION POINT: Seeks Chapter 11 Bankruptcy in Michigan
MITEL NETWORKS: Gets Court Okay for Debt Restructuring Plan
MOSAIC SWNG: Gets Extension to Access Cash Collateral
MT. BETHEL CHRISTIAN ACADEMY: S&P Assigns 'BB+' Rev. Bond Rating
NEW FOCUS: Seeks To Sell 2017 Ford Transit
NITRO FLUIDS: Gets Court Approval to Sell Assets in Chapter 11
NORTH JERSEY TIRE: Brian Hofmeister Named Subchapter V Trustee
PIER 115: Joseph Schwartz Named Subchapter V Trustee
PREMIUM CRANE: Court Extends Cash Collateral Access to May 22
REBELLION POINT: Seeks Subchapter V Bankruptcy in North Carolina
RMBQ INC: Case Summary & 20 Largest Unsecured Creditors
ROCKRIDGE2016 LLC: Seeks Chapter 11 Bankruptcy in Texas
RYMAN HOSPITALITY: Fitch Affirms BB- LongTerm IDR, Outlook Positive
SC HEALTHCARE: Petersen Gets Prelim. Okay to Tap Ch. 11 Plan Votes
SILVER AIRWAYS: Airline at Risk of Permanent Closure
SILVERROCK DEVELOPMENT: Seeks to Extend Plan Exclusivity to Aug. 1
SILVERSHORE CYPRESS: Seeks to Sell Queens Property at Auction
SIZZLING PLATTER: Fitch Alters Outlook on B- LongTerm IDR to Stable
SLATER PARK: Plan Exclusivity Period Extended to June 22
SLIM AND GOLDIE: L. Todd Budgen Named Subchapter V Trustee
SMOKECRAFT CLARENDON: Gets Extension to Access Cash Collateral
SOLANO HOME: Seeks Cash Collateral Access Until June 20
SPIRIT AIRLINES: Appoints New CEO After Chapter 11 Exit
SPORTMAN'S SUPPLY: Case Summary & 18 Unsecured Creditors
TEZCAT LLC: Jerrett McConnell Named Subchapter V Trustee
THREE STAR: Richard Preston Cook Named Subchapter V Trustee
TILL LOGISTICS: Court OKs Truck Sale
TISCHER CREEK: S&P Lowers 2018A Revenue Bonds Rating to 'BB-'
TRUCK & TRAILER: Case Summary & 20 Largest Unsecured Creditors
VACATION OWNERSHIP: Dawn Maguire Named Subchapter V Trustee
VILLAGE ROADSHOW: Asks Court Okay for Higher Stalking Horse Bid
VIRGOLINO DE OLIVEIRA: Chapter 15 Case Summary
VIRIDOS INC: Seeks Chapter 11 Bankruptcy in Delaware
VISTA PARTNERS: Court OKs Newood Assets Sale to Newood Sustainable
VISTRA CORP: Fitch Hikes LongTerm IDR to 'BB+', Outlook Stable
WASKOM BROWN: Seeks Subchapter V Bankruptcy in Louisiana
WATER'S EDGE: Seeks to Extend Plan Exclusivity to June 4
WELLPATH HOLDINGS: PSOIX Virtually Writes Off $150,000 Loan
WELLPATH HOLDINGS: Secures UCC Support for Amended Ch. 11 Plan
WIN PRODUCTIONS: Plan Exclusivity Period Extended to May 9
WOLYNIEC CONSTRUCTION: Gets Interim OK to Use Cash Collateral
WYNN TEC: Jill Durkin of Durkin Law Named Subchapter V Trustee
XRC LLC: Gets Final OK to Use Cash Collateral
ZAYO GROUP: In Debt Extension Talks with Creditors
[] G.W. Werkheiser Joins Dorsey in NY & DE Bankruptcy Group
[] LegalShield Warns of Summer Bankruptcy Surge
*********
501 LINCOLN: Gets Interim OK to Use Cash Collateral
---------------------------------------------------
501 Lincoln Ave., LLC received interim approval from the U.S.
Bankruptcy Court for the District of New Jersey, Newark Vicinage,
to use cash collateral.
The interim order authorized the use of cash collateral for the
period of 30 days from April 4.
The Debtor needs to use cash collateral to maintain and operate its
residential property in Ridgefield, New Jersey.
Wilmington Savings Fund Society holds the only mortgage or other
lien covering the property. The monthly mortgage payment due under
the loan documents (including escrow for taxes and insurance) is
approximately $3,900. All tenants are current with their rental
payments.
On February 10, 2022, the Debtor executed a mortgage loan agreement
with secured creditor's predecessor, borrowing the sum of $521,400.
On September 13, 2023, secured creditor commenced a foreclosure
action against the Property. On November 19, 2024, the Superior
Court of New Jersey entered a foreclosure judgment in favor of
secured creditor, in the amount of $821,051.
As protection, Wilmington will be granted a replacement lien on the
Debtor's post-petition
collateral and proceeds thereof, to the same extent and with the
same priority as its pre-bankruptcy lien.
A final hearing is set for May 6.
About 501 Lincoln Ave. LLC
501 Lincoln Ave., LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. N.J. Case No. 25-13570) on April 4,
2025. In the petition signed by Steven Herrera, owner/president,
the Debtor disclosed up to $1 million in both assets and
liabilities.
Judge John K. Sherwood oversees the case.
John O'Boyle, Esq., at Norgaard OBoyle Hannon, represents the
Debtor as legal counsel.
76 M: To Sell Kansas Property to Kansas Avenue or H Street
----------------------------------------------------------
76 M Inc. seeks approval from the U.S. Bankruptcy Court for the
District of Columbia, to sell Real Property, free and clear of
liens, interests, and encumbrances.
The Debtor seeks to sell its interest in the 6145-6149 Kansas
Avenue; NE; Washington DC 20011.
The Debtor wants to sell its Property to Kansas Avenue Partners,
LLC for $1.8MM Cash or to H Street 202, LLC for $1.4MM Cash and
for assumption and assignment of unexpired leases.
The Debtor engages Marcus & Millichap as commercial broker in
connection with the Kansas Property, with the terms of 5%
commission which is chargeable against the estate for any contract
procured.
The Debtor proposes two buyers for the Kansas Property and each
buyer H St and KAP will present evidence if not by consent order
that demonstrates how and in what way it will ensure that tenants
of the Property will receive adequate assurance for future
performance of habitable, safe, and sustained living conditions.
About 76 M Inc.
76 M Inc. is primarily engaged in renting and leasing real estate
properties.
76 M Inc. filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. C. Case No. 24-00003) on Jan. 3,
2023, listing up to $50,000 in assets and $1 million to $10
million
in liabilities. The petition was signed by Peter Odagbodo as
president.
Judge Elizabeth L. Gunn presides over the case.
John D. Burns, Esq. at The Burns Law Firm, LLC represents the
Debtor as counsel.
A/C DUCTOLOGIST: Linda Leali Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 21 appointed Linda Leali, Esq., as
Subchapter V trustee for The A/C Ductologist LLC.
Ms. Leali will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Leali declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Linda M. Leali
Linda M. Leali, P.A.
2525 Ponce De Leon Blvd., Suite 300
Coral Gables, FL 33134
Telephone: (305) 341-0671, ext. 1
Facsimile: (786) 294-6671
Email: leali@lealilaw.com
About The A/C Ductologist
The A/C Ductologist LLC is a Florida-based HVAC contractor,
specializing in duct replacement and repair, air conditioning
installation and maintenance, and indoor air quality assessments
for both residential and commercial clients. Additionally, it
offers insulation installation services for homes.
The A/C Ductologist LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12944) on March 19,
2025. In its petition, the Debtor reports total assets of $433,330
and total liabilities of $1,891,442.
Judge Peter D. Russin handles the case.
The Debtor is represented by:
Zach B. Shelomith, Esq.
LSS LAW
2699 Stirling Rd # C401
Fort Lauderdale, FL 33312
Tel: (954) 920-5355
Email: zbs@lss.law
AIMBRIDGE ACQUISITION: PSOIX Marks $742K Loan at 36% Off
--------------------------------------------------------
The Palmer Square Opportunistic Income Fund has marked its $742,167
loan extended to Aimbridge Acquisition Co., Inc. to market at
$472,516 or 64% of the outstanding amount, according to PSOIX's
Form N-CSR for the fiscal year ended July 31, 2024, filed with the
U.S. Securities and Exchange Commission.
PSOIX is a participant in a Loan to Aimbridge Acquisition Co., Inc.
The loan accrues interest at a rate of 8.59% (1-Month Term SOFR+375
basis points) per annum. The loan matures on February 2, 2026.
PSOIX was organized as a Delaware statutory trust on May 1, 2014,
and is registered as a non-diversified, closed-end management
investment company under the Investment Company Act of 1940, as
amended. Shares of the Fund are being offered on a continuous
basis.
PSOIX is an investment company and accordingly follows the
investment company accounting and reporting guidance of the
Financial Accounting Standards Board (FASB) Accounting Standard
Codification Topic 946 "Financial Services—Investment
Companies".
PSOIX values equity securities at the last reported sale price on
the principal exchange or in the principal over the counter market
in which such securities are traded, as of the close of regular
trading on the NYSE on the day the securities are being valued or,
if the last-quoted sales price is not readily available, the
securities will be valued at the last bid or the mean between the
last available bid and ask price.
PSOIX is led by Jeffrey D. Fox as president and principal executive
officer and Stacy Brice Chief Compliance Officer and Legal
Counsel.
The Fund can be reached through:
Stacy Brice
1900 Shawnee Mission Parkway Suite 315
Mission Woods, KS 66205
Telephone: (816) 994-3200
About Aimbridge Acquisition Co
Aimbridge Acquisition Co. Inc. owns and operates a chain of hotels.
The Company offers its services in the United States.
ALEXA HOLDINGS: Seeks Chapter 11 Bankruptcy in North Carolina
-------------------------------------------------------------
On April 14, 2025, Alexa Holdings 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 $2,884,529 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Alexa Holdings Inc.
Alexa Holdings Inc. owns MoonRunners Saloon, a Prohibition-era
themed restaurant and bar based in Garner, North Carolina, known
for its Southern-style cuisine and distinctive moonshine-focused
drink menu. The establishment rose to prominence after being
featured on the reality TV show Bar Rescue, which helped revamp its
brand and operations. With locations in Garner and Dunn, the saloon
continues to attract patrons with its creative cocktails, hearty
dishes, and nostalgic ambiance.
Alexa Holdings Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-01347) on April 14,
2025. In its petition, the Debtor reports total assets of $231,831
and total liabilities of $2,884,529.
Honorable Bankruptcy Judge Joseph N. Callaway handles the case.
The Debtor is represented by Danny Bradford, Esq. at PAUL D.
BRADFORD, PLLC.
ALL AMERICAN: Court Oks New Port Richey Sale to Dalton Krus
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division has granted All American Holdings LLC and its affiliates,
along with Alfredo O. Bonati, Applicable Debtor, to sell Real
Property, free and clear of liens, interests, and encumbrances.
The Court has authorized the Applicable Debtor to sell its property
located at 5240 Westshore Drive, New Port Richey, Florida to Dalton
Kruse.
The Debtor is authorized to consummate the transactions
contemplated in the contract. The transfer of the Real Property to
the Purchaser shall be free and clear of liens, claims,
encumbrances, and interests.
The Court ordered the Debtor to deposit the sum of $300,000 from
the sale proceeds into an escrow
account maintained by Debtor's counsel.
The liens of Kathy B. Scott, Tampa Bay Surgery Center Associates,
Ltd., d/b/a Center for Advanced Surgical Specialists Lien, and
Lawrence A. LaValley Judgment Lien shall attach to the Escrowed
Funds in
the same extent, validity, and priority as existed on the Petition
Date.
The Debtor is authorized to pay at closing the brokerage
commissions to the purchaser's broker, outstanding taxes, and the
closing costs.
About All American Holdings LLC
All American Holdings LLC is a limited liability company.
All American Holdings LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-02066) on April
1, 2025. In its petition, the Debtor reports estimated assets
between $1 million and $10 million and estimated liabilities
between $100,000 and $500,000.
Honorable Bankruptcy Judge Catherine Peek McEwen handles the case.
The Debtor is represented by Harry E. Riedel, Esq. at STICHTER,
RIEDEL, BLAIN & POSTLER, P.A.
ALL SEASON: Kevin Neiman Named Subchapter V Trustee
---------------------------------------------------
The Acting U.S. Trustee for Region 19 appointed Kevin Neiman as
Subchapter V trustee for All Season Adventures, Inc.
Mr. Neiman will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Neiman declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kevin S. Neiman
999 18th Street, Suite 1230 S
Denver, CO 80202
Tel: (303) 996-8637
Fax: (877) 611-6839
Email: trustee@ksnpc.com
About All Season Adventures
All Season Adventures, Inc. is a Colorado corporation with its
principal place of business located in Saguache County, Colorado.
It has licenses to operate tours in certain national forest lands.
In the winter, All Season Adventures operates snowmobile tours and
in the summer the Debtor operates ATV tours.
All Season Adventures filed Chapter 11 petition (Bankr. D, Colo.
Case No. 25-11437) on March 19, 2025, listing up to $50,000 in
assets and up to $1 million in liabilities. Steven Criswell,
president of All Season Adventures, signed the petition.
Judge Michael E. Romero oversees the case.
Jonathan M. Dickey, Esq., at Kutner Brinen Dickey Riley P.C,
represents the Debtor as legal counsel.
High Country Bank, as lender, is represented by:
Lisa K. Shimel, Esq.
Otteson Shapiro, LLP
7979 E. Tufts Avenue, Suite 1600
Denver, Colorado 80237
Telephone: (720) 488-0220
Facsimile: (720) 488-7711
Email: lshimel@os.law
AMERICAN IMPACT: Soneet Kapila Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 21 appointed Soneet Kapila of Kapila
Mukamal as Subchapter V trustee for American Impact Windows &
Doors, LLC.
Mr. Kapila will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Kapila declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Soneet R. Kapila
Kapila Mukamal
1000 South Federal Highway, Suite 200
Fort Lauderdale, FL 33316
Tel: (954) 761-1011
Email: skapila@kapilamukamal.com
About American Impact Windows & Doors
American Impact Windows & Doors, LLC installs and replaces
impact-resistant windows and doors for residential and commercial
clients. The Company's products are built to withstand severe
weather, including hurricanes, making them perfect for the region's
tough climate. The Company offers easy installations, a variety of
window and door options, and financing plans. It also provides
custom solutions like glass rails and storefront doors, along with
permit expediting services.
American Impact Windows & Doors LLC sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 25-12943) on March
19, 2025. In its petition, the Debtor reports estimated asserts up
to $50,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Laurel M. Isicoff handles the case.
The Debtor is represented by Carlos E. Sardi, Esq., at Sardi Law,
PLLC.
AMERICAN MARICULTURE: Gets Extension to Access Cash Collateral
--------------------------------------------------------------
American Mariculture, Inc. and its affiliates received third
interim approval from the U.S. Bankruptcy Court for the Middle
District of Florida, Fort Myers Division, to use the cash
collateral of their lenders.
The companies were authorized to use cash collateral to pay
ordinary and necessary business expenses as set forth in the
budget, with a 10% variance allowed.
As protection, the lenders will be granted a post-petition lien on
the cash collateral and all other post-petition assets to the same
extent and with the same validity and priority as their
pre-bankruptcy lien.
To the extent such protection is insufficient to protect the
lenders from any diminution in value of their pre-bankruptcy liens
on the cash collateral, the lenders will be granted an
administrative priority claim.
The next hearing is set for May 21.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/jp4yy from PacerMonitor.com.
About American Mariculture Inc.
American Mariculture Inc. is a food production company located at
9703 Stringfellow Road, Saint James City, Fla.
American Mariculture sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00022) on January 8,
2025. In its petition, the Debtor reported assets between $1
million and $10 million and liabilities between $10 million and $50
million.
Judge Caryl E. Delano handles the case.
The Debtor is represented by:
Scott A. Stichter, Esq.
Stichter, Riedel, Blain & Postler, P.A.
Tel: 813-229-0144
Email: sstichter.ecf@srbp.com
AMERICAN ROCK: PSOIX Marks $500K Loan at 30% Off
------------------------------------------------
The Palmer Square Opportunistic Income Fund has marked its $500,000
loan extended to American Rock Salt Co. LLC to market at $348,543
or 70% of the outstanding amount, according to PSOIX's Form N-CSR
for the fiscal year ended July 31, 2024, filed with the U.S.
Securities and Exchange Commission.
PSOIX is a participant in a Loan to American Rock Salt Co. LLC.
The loan accrues interest at a rate of 12.026% (1-Month Term
SOFR+725 basis points) per annum. The loan matures on June 11,
2029.
PSOIX was organized as a Delaware statutory trust on May 1, 2014,
and is registered as a non-diversified, closed-end management
investment company under the Investment Company Act of 1940, as
amended. Shares of the Fund are being offered on a continuous
basis.
PSOIX is an investment company and accordingly follows the
investment company accounting and reporting guidance of the
Financial Accounting Standards Board (FASB) Accounting Standard
Codification Topic 946 "Financial Services—Investment
Companies".
PSOIX values equity securities at the last reported sale price on
the principal exchange or in the principal over the counter market
in which such securities are traded, as of the close of regular
trading on the NYSE on the day the securities are being valued or,
if the last-quoted sales price is not readily available, the
securities will be valued at the last bid or the mean between the
last available bid and ask price.
PSOIX is led by Jeffrey D. Fox as president and principal executive
officer and Stacy Brice Chief Compliance Officer and Legal
Counsel.
The Fund can be reached through:
Stacy Brice
1900 Shawnee Mission Parkway Suite 315
Mission Woods, KS 66205
Telephone: (816) 994-3200
About American Rock Salt Co. LLC
American Rock Salt Company LLC produces highway deicing rock salt.
The company operates a single mine in upstate New York and sells
primarily to state and local government agencies in the
northeastern United States. The firm is a wholly owned subsidiary
of American Rock Salt Holdings LLC, which is closely held by
private investors including some members of management. The company
does not publicly disclose its financial statements. Headquartered
in Retsof, NY, American Rock Salt generated approximately $154
million in revenue for the twelve months ended June 30, 2024.
ARCH THERAPEUTICS: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Two affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Arch Therapeutics, Inc. (Lead Case) 25-40409
235 Walnut Street, Suite 6
Framingham, MA 01702
Arch Biosurgery, Inc. 25-40410
235 Walnut Street, Suite 6
Framingham, MA 01702
Business Description: Arch Therapeutics is a biotechnology company
that develops synthetic wound care products,
including the FDA-cleared AC5 Advanced Wound
System. Regulated as a medical device, AC5
is a peptide-based product designed for
managing partial and full-thickness wounds
-- such as pressure ulcers, venous leg
ulcers, diabetic ulcers, and surgical wounds
-- across various settings including
hospitals, VA facilities, wound clinics,
doctors' offices, home care, and potentially
in war zones. It features a proprietary
self-assembling peptide that forms an
extracellular-like matrix upon application,
distinguishing it from traditional tissue-
based wound care solutions.
Chapter 11 Petition Date: April 18, 2025
Court: United States Bankruptcy Court
District of Massachusetts
Debtors'
General
Bankruptcy
Counsel: Alan L. Braunstein, Esq.
RIEMER & BRAUNSTEIN LLP
100 Cambridge Street
22nd Floor
Boston, MA 02114
Tel: (617) 523-9000
Email: abraunstein@riemerlaw.com
Arch Therapeutics'
Estimated Assets: $1 million to $10 million
Arch Therapeutics'
Estimated Liabilities: $10 million to $50 million
Arch Biosurgery, Inc.'s
Estimated Assets: $100,000 to $500,000
Arch Biosurgery, Inc.'s
Estimated Liabilities: $0 to $50,000
The petitions were signed by Terrence Norchi, MD, as president.
Full-text copies of the petitions are available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/HYUAHCY/Arch_Therapeutics_Inc__mabke-25-40409__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/B6W5IPQ/Arch_Biosurgery_Inc_and_Arch_Therapeutics__mabke-25-40410__0001.0.pdf?mcid=tGE4TAMA
List of Lead Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Brock A. Liden, DPM $26,500
Cutting Edge Research LLC
7866 Norman Street NW
Pickerington, OH 43147
2. Donohoe Advisory $66,032
Associates LLC
9801 Washingtonian Blvd.
Gaithersburg, MD 20818
3. Lowenstein Sandler LLP $1,371,645
One Lowenstein Drive
Roseland, NJ 07068
4. McDonald Carano Wilson $35,896
2300 West Sahara Avenue
Suite 1000
Las Vegas, NV 89102
5. Medical Device QRC $60,250
Consulting, LLC
509 E. 1st Street, #8
Boston, MA 02127
6. Moody, Famiglietti & $25,975
Andronico, LLP
1 Highwood Drive
Tewksbury, MA 01876
7. Morgan, Lewis & Brokius LLP $25,944
1701 Market Street
Philadelphia, PA
19103-2921
8. Pabst Patent Group LLC $45,000
1355 Peachtree Street NE
Suite 800
Atlanta, GA 30309
9. Phase-n Corporation $39,781
256 Marginal Street
Bldg 22
East Boston, MA 02128
10. Potter Clarkson LLP $35,920
The Belgrave Centre
Talbot Street
Nottingham NG1
5GG United Kingdom
11. Rhodes & Associates, Inc. $38,600
211 Poinciana Lane
Largo, FL 33770
12. Roger Gregory $96,000
5812 Glad Blvd.
Kent, OH 44240
13. Shawn Carlson $40,000
109 Salisbury Lane
Birmingham, AL 35242
14. Studio 8DM $28,652
27758 Santa
Margarita Pkwy.
#261
Mission Viejo, CA 92691
15. The CFO Squad $45,200
46 Main Street, Suite 119
Monsey, NY 10952
16. The Mullings Group $27,500
190 Congress Park Drive
Suite 210
Delray Beach, FL 33445
17. The Reimbursement Group, Ltd. $27,940
7717 Steiner Road
Bellaire, MI 49615
18. Tiburon Capital, LLC $350,000
Peter Bortel, General Partner
Tiburon Opportunity Fund LP
13313 Point
Richmond Beach Road, NW
Gig Harbor, WA 98332
19. Walleye Opportunities $350,000
Master Fund Ltd.
2800 Niagara Lane North
Plymouth, MN 55447
20. Weinberg & Company, CPA's $32,728
1025 Centure Park East
Suite 1120
Los Angeles, CA 90067
BALDWIN INSURANCE: S&P Upgrades LT ICR to 'B' on Reduced Leverage
-----------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating on The
Baldwin Insurance Group Inc. (Baldwin) to 'B' from 'B-'.
S&P also raised its issue-level ratings on Baldwin's revolver,
first-lien term loan, and senior secured notes to 'B' from 'B-';
the recovery ratings remain '3', indicating its expectation of
meaningful recovery (50%-70%; rounded estimate: 50%) of principal
in the event of default.
The stable outlook reflects S&P's expectation for continued strong
organic growth and steady margin expansion, resulting in sustained
improvements to credit metrics.
The upgrade reflects Baldwin's improved leverage, which is now
commensurate with a 'B' rating. Baldwin's S&P Global
Ratings-adjusted leverage was about 6.6x at year-end 2024. This
reduction from 8.6x in 2023 and further still from about 10x in
2022 was primarily due to solid earnings growth, supported by
minimal capital markets activity as part of the company's ongoing
commitment to reducing its leverage.
While debt-funded merger and acquisition (M&A) activity was once a
key part of its growth strategy, Baldwin has entirely cut back on
M&A and has not incurred material debt since leverage peaked in
2022. The company's more recent capital markets activity has been
generally supportive to credit quality and consistent with prudent
financial policy, including the repricing and incremental add-on in
early 2025 to fund earnout payments.
This shift in strategy has also led to relatively cleaner quality
of earnings, which, in our view, has been supportive to improving
leverage. Baldwin's S&P Global Ratings-adjusted EBITDA margins have
benefited from gradually declining M&A and other
transaction-related expenses, since these are not added back in its
calculation of EBITDA. Combined with lower earnout obligations,
which S&P views as debt, Baldwin ended 2024 with S&P Global
Ratings-adjusted leverage comfortably within our previous upside
trigger of 7.0x.
S&P said, "We expect Baldwin to maintain prudent financial policy
and for continued improvements in credit metrics to be sustained.
We believe Baldwin has followed through on its commitment to reduce
leverage. Based on the company's calculations, Baldwin's net
leverage was 4.1x at year-end 2024, which is slightly above its
target range of 3.0x-4.0x. We therefore expect further improvements
to leverage in the near-term, which are likely to be sustained, as
we expect Baldwin to continue managing leverage within this range.
"As Baldwin continues to focus on driving organic growth and
enhancing operational capabilities, we expect its S&P Global
Ratings-adjusted EBITDA margins to remain on a healthy growth
trajectory. We believe M&A activity will remain more opportunistic
and episodic in nature, which should further support margin
expansion as related expenses continue to taper off. We think this
will minimize the potential for material swings in leverage
stemming from M&A-related add-backs and earnout obligations.
"Furthermore, we believe the company will predominantly use cash to
fund any potential M&A with limited incremental debt issuances as
part of its prudent financial policy. As Baldwin steadily reduces
debt and continues to grow earnings, we forecast leverage will be
sustained well below our current downside threshold of 7.0x.
"Given the company's solid business fundamentals, track record of
execution, and growing suite of capabilities, we think Baldwin will
maintain peer-leading organic growth and gradually improve margins.
Baldwin reported another year of robust organic growth of 17% in
2024 on strong new business and retention trends across all
operating segments. We think this also reflects overall successful
execution of past and ongoing internal investments, including
tech-driven sales enablement tools, a growing suite of propriety
insurance products, and differentiated embedded distribution
capabilities.
"While we expect Baldwin to sustain above-average organic growth,
we believe its margins will continue to lag behind peers. Baldwin's
S&P Global Ratings-adjusted EBITDA margin was 18.1% in 2024, a
meaningful improvement from 16.1% in 2023. However, this was a
slight miss compared to our original expectations for margins
closer to 19%-20%, which we attribute to the observed rate and
exposure headwinds and unfavorable impact to contingent commissions
related to storm activity in 2024.
"Nevertheless, we think Baldwin has solid business fundamentals and
is on a trajectory for sustained growth and improved capabilities,
which should more than offset impacts related to the company's
renewed agreement with QBE and upcoming reinsurance renewals.
Furthermore, with initiatives such as its recently launched
reinsurance brokerage and forthcoming reciprocal exchange, we
believe Baldwin will sustain favorable performance momentum. We
maintain that the company is well positioned for continued margin
expansion, resulting in leverage well within the bounds of the
current rating and in line with other 'B' rated peers.
"The stable outlook reflects our expectation that Baldwin will
demonstrate continued performance momentum over the next 12 months,
including strong organic growth and steady margin expansion. Along
with expectations for continued prudent financial policy decisions,
we believe credit metrics will remain commensurate with our current
ratings and similarly rated peers."
While unlikely, S&P may consider a downgrade over the next 12
months if earnings or credit metrics deteriorate such that it
expects leverage above 7.0x and interest coverage materially below
2.0x on a sustained basis. This could result from:
-- Revenue shrinkage related to lost market share or unfavorable
new business and retention trends;
-- Margin contraction due to operational missteps and
macroeconomic conditions that are worse than expected; or
-- A more aggressive financial policy.
S&P may consider an upgrade over the next 12 months if Baldwin
materially exceeds performance expectations or adopts more
conservative financial policy decisions, such that S&P expects it
will sustain leverage below 5.0x and coverage well above 3.0x. This
would have to be accompanied by continued enhancement in the
company's overall competitive position, scale, and
diversification.
BAUSCH + LOMB: Fitch Hikes IDR to 'B', On Watch Evolving
--------------------------------------------------------
Fitch Ratings has upgraded Bausch + Lomb Corporation's (BLCO)
Issuer Default Rating (IDR) to 'B' from 'B-' and the rating on its
senior secured debt to BB' with a Recovery Rating of 'RR1' from
'BB-'/RR1. This follows the upgrade of its parent, Bausch Health
Companies Inc. (BHC) to 'CCC+' from 'CCC'.
Fitch has maintained the Rating Watch Evolving (RWE) on all of
BLCO's ratings. The Rating Watches reflect BHC's ownership of BLCO
and, therefore, the possibility that BLCO's ratings could be
downgraded if BHC's ratings are downgraded before a potential
separation and could be affirmed or upgraded upon completion of a
separation. BLCO's ratings could also be downgraded if Fitch
reassesses the strength of the linkage between the entities,
resulting in less than the current two-notch uplift. The resolution
of the Rating Watch may occur after six months.
Key Rating Drivers
BLCO's Ratings Limited by BHC's: Unless the two entities are
separated, the primary driver of BLCO's ratings are BHC's 'CCC+'
IDR. Fitch views BLCO's Standalone Credit Profile (SCP; 'b+') as
stronger than BHC's. However, BLCO's ratings are constrained by a
maximum of two notches from the consolidated IDR, given its view
that there are only some limitations on BHC's ability to access and
influence BLCO due to the ring-fencing via the debt documents and
the presence of minority shareholders limiting their access and
control. Until separation, any changes in linkage could lower
BLCO's ratings. BHC's credit profile reflects elevated refinancing
risk given material at-risk EBITDA.
Solid Position in Eye Care Market: Fitch views BLCO's end market
favorably as age demographic trends, improved income levels in
emerging markets, increasing digital screen times, and the rise in
the incidence of diabetes will likely drive low- to
mid-single-digit growth in demand for eye health products and
services. Moreover, Fitch believes BLCO benefits from a solid
market position given many BLCO products have leading market
positions and strong brand recognition, consumer-facing products
account for most of its revenue, and the product portfolio has
limited exposure to market exclusivity losses.
Pipeline to Support Growth: To remain competitive, Fitch expects
the company will continue to pursue innovation in Vision Care, with
more incremental technological advancements. Fitch believes the
company's R&D efforts will help drive intermediate- and long-term
revenue growth while also supporting margins. BLCO makes consistent
and large investments in new product development. Its R&D efforts
cover all three businesses, focusing more on surgical and
ophthalmic pharmaceuticals.
Increased Leverage Post-Acquisition: Fitch expects BLCO to maintain
leverage between 5x and 5.5x following its recent acquisition of
Novartis' ocular surface pharmaceuticals portfolio, which includes
Xiidra. Fitch assumes BLCO will continue to invest in some
debt-funded business development. Fitch views the acquisition
favorably as it adds a growing product for treating dry eye
disease. It should significantly boost BLCO's profitability as it
has much higher margins than the overall BLCO portfolio. The
acquisition also includes a mid-stage developmental pharmaceutical
product and AcuStream, a device for precise dosing and accurate
delivery of certain topical ophthalmic medications.
Stable Margins: Fitch assumes margins will remain relatively stable
over the long term but assumes a 100bps -150bps compression in
2025, sustaining at those levels thereafter given near-term
macroeconomic headwinds and potential impacts from global tariff
disputes.
Consistently Positive FCF: Advancing sales, relatively stable
margins, solid working capital management, and moderate capex
requirements should support positive and increasing FCF. Fitch does
not expect BLCO to pay dividends or engage in share repurchases.
Capital deployment should focus on internal investment, external
collaborations and targeted acquisitions. As a leading global eye
health company, BLCO has minimal contingent liability risk
regarding product liability, intellectual property, and other
regulatory issues. Fitch expects the company to reduce leverage,
primarily through debt reduction and EBITDA growth.
Peer Analysis
BLCO's 'B'/RWE is based on its being majority-owned by Bausch
Health until the separation. Fitch compares BLCO to other medical
device and products companies, including Boston Scientific Corp.
(A-/Stable), Becton, Dickinson & Company (BBB/Stable), Zimmer
Biomet Holdings, Inc. (BBB/Stable), Solventum Corporation
(BBB-/Rating Watch Positive), and ICU Medical (BB/Negative). Fitch
considers the diversification benefits of BLCO's operations in
consumer health and prescription pharmaceuticals, and moderate
regulatory risk over drug pricing. However, BLCO is less
diversified as it solely focuses on eye health, unlike its peers
that address multiple markets. The higher-rated peers also operate
with lower EBITDA leverage.
Key Assumptions
- Fitch has assumed mid-single-digit top-line growth through the
rating horizon, driven by both organic growth and some
contributions from recent and assumed acquisitions;
- Fitch has assumed EBITDA margins declining in 2025 by
approximately 100bps in light of the softening economic environment
and implications of global trade uncertainty and improving modestly
beginning in 2027;
- Fitch has assumed BLCO spends approximately 6% of revenues on
capex and another $200 million per year on tuck-in acquisitions,
with no dividends or share repurchases;
- Fitch has assumed gross debt is generally unchanged as the above
capital spending requires revolver borrowings that modestly exceed
term loan amortization.
Recovery Analysis
In assigning and maintaining instrument ratings on issuers with
IDRs of 'B+' and below, Fitch conducts a bespoke recovery analysis.
The recovery analysis assumes that BLCO would be considered a going
concern in bankruptcy and that the company would be reorganized
rather than liquidated. Fitch estimates a going-concern enterprise
value of $6.0 billion for BLCO and assumes that administrative
claims consume 10% of this value in the recovery analysis.
The going-concern enterprise value is based on estimates of
post-reorganization EBITDA and the assignment of an EBITDA
multiple. The assumed going-concern EBITDA reflects Fitch's
expectation that operational stress at the parent would lead to a
reorganization prior to the separation and thus Fitch's estimate of
BLCO's going-concern EBITDA of $850 million is broadly in line with
Fitch's expectations for 2025. This assumption has increased from
the $800 million used at the last review given BLCO's strengthening
EBITDA generation but slightly less than 2024 actual.
Fitch assumes a recovery enterprise value/EBITDA multiple of 7.0x
for BLCO. This is generally in line with the 6.0x-7.0x Fitch
typically assigns to medical device/specialty pharmaceutical
manufacturers. BLCO's operating environment does not face many of
the challenges that pure pharmaceutical companies often face,
according to Fitch.
Fitch applies a waterfall analysis to the going-concern enterprise
value based on the relative claims of the debt in the capital
structure, and assume that the company would fully draw the its
$500 million revolver in a bankruptcy. The first-lien term loans
and the first lien secured bonds, which Fitch estimates to be
roughly $4.7 billion, have outstanding recovery prospects in a
reorganization. The term loans and bonds are rated
'BB-'/'RR1'/RWE.
In applying the Country-Specific Treatment of Recovery Ratings
Criteria, Fitch has assumed that the weighted-average country cap
of the countries where economic value could be realized allows for
+3 notching. Fitch has assumed the country cap for revenues
generated in countries reported by BLCO as "Other" would be the
same as the average for the specifically named countries. Fitch
also considered the company's country of incorporation, operational
headquarters and assumed location of its intellectual property.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Evidence of factors related to ring-fencing and access and
control, which would lead Fitch to rate BLCO on a consolidated
basis with BHC or with a one notch uplift rather than two notches;
- A downgrade at BHC.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch viewing BLCO on a standalone basis;
- An upgrade at BHC.
Liquidity and Debt Structure
Bausch + Lomb has ample liquidity for the next two years, but its
debt maturities are concentrated in 2027 and 2028 when $2.9 billion
and $1.9 billion mature, respectively. Until then, Bausch + Lomb
benefits from approximately $300 million of cash at Dec. 31, 2024,
$358 million of capacity under its RCF and positive FCF.
Issuer Profile
BLCO is currently a publicly traded global eye health company that
is majority owned and consolidated by BHC.
Summary of Financial Adjustments
There is no material adjustments made outside of the scope of
criteria. Some analytical adjustments were made for items viewed as
one-time or non-recurring in nature.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
Public Ratings with Credit Linkage to other ratings
BLCO's ratings are not directly linked to those of BHC but they are
constrained by them based on the application of the Parent and
Subsidiary Linkage Rating Criteria.
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
Bausch + Lomb Corporation has an ESG Relevance Score of '4' for
Exposure to Social Impacts due to pressure to contain health care
spending growth, highly sensitive political environment and social
pressure to contain costs or restrict pricing, which has a negative
impact on the credit profile, and is relevant to the ratings in
conjunction with other factors. Pharmaceuticals account for less
than 15% of the firm's total sales.
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
----------- ------ -------- -----
Bausch + Lomb
Corporation LT IDR B Upgrade B-
senior secured LT BB Upgrade RR1 BB-
BAUSCH HEALTH: Fitch Hikes Issuer Default Rating to 'CCC+'
----------------------------------------------------------
Fitch Ratings has upgraded Bausch Health Companies Inc.'s (BHC) and
Bausch Health Americas, Inc.'s (BHA) (collectively, BHC) Issuer
Default Ratings (IDRs) to 'CCC+' from 'CCC' following the
refinancing which addressed upcoming maturities. The ratings remain
in the 'CCC' category to reflect long-term refinancing risk,
non-zero risk of a distressed debt exchange for later maturities,
and a weakening balance sheet when XIFAXAN revenues decline and if
BHC separates Bausch + Lomb Corporation.
Fitch assigned a rating of 'B' with a Recovery Rating of 'RR2' to
the first lien debt issued by 1261229 B.C. Ltd, affirmed BHC's
existing first lien notes at 'B' and revised the Recovery Rating to
'RR2' from 'RR1', and upgraded the second lien (issued by BHC) and
unsecured notes (issued by BHC and BHA) to 'CCC-'/'RR6' and
'CC'/'RR6', respectively.
Key Rating Drivers
Refinancing is Upgrade Catalyst: The recently completed debt
transactions have significantly reduced refinancing risk over the
rating horizon, which was a key driver of the previous 'CCC' IDR.
Pro forma, BHC has limited near-term maturities and ample liquidity
to address them. Fitch previously assumed BHC might need to pursue
off-market transactions or distressed debt exchanges to refinance
the near-term maturities, but this did not occur. It remains to be
seen how BHC may use the drop-down capacity in its debt agreements
for future refinancings and whether this will involve ordinary debt
issuances or transactions that Fitch could view as a distressed
debt exchange.
Next Material Maturities Overlap with XIFAXAN: The 'CCC+' IDR
reflects Fitch's view that refinancing risk is high in the medium
term given its expectation of material revenue and EBITDA declines
beginning in 2027 and continuing in 2028. XIFAXAN, a branded
antibiotic used to treat irritable bowel syndrome and other
conditions, contributes 20% of consolidated revenues and 40% of
revenues, excluding BLCO. Fitch assumes XIFAXAN revenues to decline
to $1.5 billion and $1.2 billion in 2027 and 2028, respectively,
from $2.0 billion in 2024 and $2.2 billion in 2026 (assumed peak
sales), subject to negotiated prices with Medicare and the entrance
of generic competition.
Fitch assumes EBITDA margins will decline by 1000bps due to the
loss of high-margin revenues. Fitch assigns a wider confidence
interval around these assumptions, with a high probability of
revenue declines occurring, though the actual amounts and timing
are uncertain. Fitch has not assumed contributions from new
products or acquisitions will fully offset losses, given the
relatively thin late-stage pipeline and the limited contributions
acquisitions could provide if available FCF were allocated to
acquisitions at current market multiples.
Currently Solid Metrics at Risk of Deterioration: As a result of
the above assumptions, Fitch expects key credit metrics to
transition from those comparable to a 'B' category rating (e.g.
approximately 6x leverage, 2x interest coverage, and high-single
digit FCF margins) to those consistent with 'CCC' category (e.g.
leverage exceeding 8x, interest coverage below 1.5x, and break-even
to low-single digit FCF margins) in 2027 and 2028 when there will
be almost $4.3 billion of debt maturities at BHC in 2028.
BHC's Potential Separation of BLCO: The decisions related to BLCO's
separation from BHC will significantly impact the long-term credit
profile, with potential positive rating momentum if BHC retains
BLCO. However, BHC continues to express its intention to separate
BLCO, as stated on the 4Q24 earnings call: "the main objective
remains the same, which is to complete the separation of Bausch +
Lomb from Bausch Health in the most accretive way for Bausch Health
shareholders." However, separation risk is limited by the recent
refinancing, as 52.5% of BLCO's shares now serve as collateral for
debt guaranteed by BHC whereas previously debt collateralized by
shares was not guaranteed.
Separation Would Impact Key Metrics: Fitch would view further
separation of BLCO as a credit negative and expects credit metrics
to weaken beyond 2027 if it occurred, with leverage approximating
10x, coverage approaching 1x, and neutral to negative FCF. Fitch
notes that the recently issued debt has drop-down capacity and
other means to move the 35.5% of unencumbered shares. However, a
decline in XIFAXAN revenue poses a risk to BHC obtaining the
necessary solvency opinion for the separation.
Operations Stabilizing: BHC's operating fundamentals continued to
improve in 2024 after a solid 2023, driven by increasing revenue
from its subsidiaries, Solta Medical business, Salix, and its
international and diversified segments. Advancing sales and
relatively stable margins resulted in improved cash generation. The
company moderately reduced debt during the period. Fitch expects
this trend to continue during the intermediate term, assuming
XIFAXAN continues to retain market exclusivity.
Application of Parent and Subsidiary Rating Linkage: Fitch rates
BHC by comparing its credit profile with that of its subsidiaries,
Bausch Health Americas, Inc. (BHA) and BLCO, under its Parent and
Subsidiary Rating Linkage Criteria. Fitch regards BHA as a
'Stronger' subsidiary and BHC as the 'Weaker' parent. Fitch
believes there is open ringfencing and access and control between
BHA and BHC. Therefore, Fitch rates the entities at the
consolidated level with no notching between the two. Fitch has not
assigned an IDR to 1261229 B.C. Ltd. as it owns financial assets
but has no direct operations. Fitch instead rates the debt based on
the guarantee by BHC.
Peer Analysis
BHC's rating is lower than those of specialty pharmaceutical
industry peers, ADVANZ PHARMA (B/Stable), Mallinckrodt plc
(B+/Rating Watch Positive), and Jazz Pharmaceuticals (BB/Stable).
This reflects Fitch's expectation of a deterioration of BHC's key
credit metrics when XIFAXAN faces revenue pressures and BHC's
potential separation of BLCO. Fitch expects BHC may experience
outlier leverage and limited FCF, which would lead to elevated
refinancing risk over the medium to long term.
Key Assumptions
On a consolidated basis, for BHC including BLCO:
- Revenues sustain around $10 billion, assuming 3% growth in 2025
and 2026 and declines in 2027 and 2028 as XIFAXAN faces pressures
from the Inflation Reduction Act and competition, respectively;
- EBITDA margins decline by 50-100bps in 2025 due to inflation in
2025 and down further to around 25% in 2027 as XIFAXAN faces
pressures;
- Capex totaling $350 million per year, $50 million per year of
cash restructuring and separation costs, and $200 million per year
of acquisitions at BLCO.
For BHC ex-BLCO:
- Revenue growth around 1% in 2025 and 2026 and declining by
approximately 15% versus 2024 levels, cumulatively in 2027 and
2028;
- Modest improvements in EBITDA margins as top-line expands in 2025
and 2026 but declines to mid-30% range from low-50% range in 2027
and 2028 as XIFAXAN revenues decline;
- Modest headwinds, particularly in the International segment, with
risks related to the unfolding of potential tariffs in the U.S. and
retaliatory actions.
Recovery Analysis
In assigning and maintaining instrument ratings on issuers with
IDRs of 'B+' and below, Fitch conducts a bespoke recovery analysis.
The recovery analysis assumes that BHC would be considered a going
concern in bankruptcy and that it would be reorganized rather than
liquidated.
Fitch estimates a standalone reorganized enterprise value of
approximately $9.8 billion for BHC, excluding its ownership of
BLCO, and assume administrative claims consume 10% of this value.
Fitch estimates a going-concern EBITDA, excluding BLCO, of $1.5
billion. This reflects a scenario where XIFAXAN loses significant
market share and BHC experiences shortfalls in commercializing its
R&D pipeline. This assumption is unchanged from previous reviews.
Fitch assumes a recovery enterprise value/EBITDA multiple of 6.5x.
This assumption has been reduced from the previous 7x multiple
considering the implied multiple the company trades for excluding
BLCO and in recognition of the approaching XIFAXAN revenue
headwinds. Fitch assumes BHC's equity ownership in BLCO has $0.65
billion of value, assuming its debt is fully drawn, a 7x multiple
on $850 million of EBITDA and a 10% administrative claim, 52.5% of
which is pledged to the new first lien lenders and 35.5% is
unencumbered and available to all lenders.
Fitch applies a waterfall analysis to the going-concern enterprise
value based on the relative claims of the debt in the capital
structure, starting with $7.9 billion of new first lien debt (fully
drawn), $3.4 billion of existing first lien debt, $0.4 billion of
second lien debt, and $4.7 billion of unsecured debt.
The inclusion or exclusion of BHC's unencumbered equity interests
in BLCO does not influence the notching and therefore the
allocation across lenders, in and of itself, does not necessarily
influence the notching of BHC's instruments relative to its IDR.
The A/R securitization credit facility reduces the going-concern
enterprise valuation and is not included as debt in the waterfall.
The application of Fitch's Country-Specific Treatment of Recovery
Ratings Criteria does not impact the instrument ratings.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- BHC further separates BLCO, either fully or partially, such that
Fitch no longer views the consolidated profile to be the best
reflection of the credit profile and Fitch views BHC ex-BLCO
metrics to be unsustainable, including:
- Leverage sustaining above 8.5x;
- Negative FCF with insufficient liquidity buffers;
- EBITDA Interest Coverage sustaining below 1.5x;
- Fitch could also envision negative momentum if it expects the
company to need to pursue off-market refinancing options including,
but not limited to, distressed debt exchanges.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Leverage sustaining below 7.5x;
- Neutral to positive FCF;
- EBITDA Interest Coverage sustaining above 2x;
- Positive rating momentum will be governed by Fitch's expectation
that the quantitative measures can be maintained after XIFAXAN
revenues are affected by drug price legislation and competition,
and without the benefit of BLCO if it is further separated.
Liquidity and Debt Structure
BHC has solid liquidity pro forma for the recent refinancing.
Sources of liquidity include $876 million excluding cash at BLCO,
$500 million of capacity under its new RCF and Fitch-forecasted
positive FCF. These amounts are sufficient to service $1.2 billion
of remaining debt maturities in 2026 and 2027, combined. BHC also
has $300 million of remaining capacity under its A/R securitization
facility, which is not reflected in the formal liquidity
calculations. BHC has a complicated debt structure with an A/R
securitization facility, two types of first lien debt, second lien
debt, and unsecured debt with three issuers.
Issuer Profile
BHC is a multinational healthcare company headquartered in Canada
that develops, manufactures and markets pharmaceutical and medical
device products. Its largest segment is the 88% interest it
maintains in Bausch + Lomb Corporation.
Summary of Financial Adjustments
There are no material items beyond adjustments for those Fitch
considers one-time or non-recurring in nature.
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
Bausch Health Americas, Inc. and Bausch Health Companies, Inc. have
ESG Relevance Scores of '4' for Exposure to Social Impacts due to
pressure to contain healthcare spending growth, a highly sensitive
political environment and social pressure to contain costs or
restrict pricing., which has a negative impact on the credit
profile, and is relevant to the rating[s] in conjunction with other
factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Bausch Health
Companies Inc. LT IDR CCC+ Upgrade CCC
senior secured LT B Affirmed RR2 B
senior
unsecured LT CC Upgrade RR6 C
Senior Secured
2nd Lien LT CCC- Upgrade RR6 CC
Bausch Health
Americas, Inc. LT IDR CCC+ Upgrade CCC
senior
unsecured LT CC Upgrade RR6 C
1261229 B.C. LTD.
senior secured LT B New Rating RR2
BENFIELD REAL: M. O'Connor Named Successor Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Region 7 appointed Michael O'Connor as
Successor Subchapter V trustee for Benfield Real Estate, LLC.
Mr. O'Connor will charge an hourly fee of $375 for his services as
Subchapter V trustee, and $125 for support staff working under his
direct supervision. In addition, the Subchapter V trustee will be
reimbursed for work-related expenses incurred.
Mr. O'Connor declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael J. O'Connor
The Spectrum Building
613 Northwest Loop 410, Ste. 840
San Antonio, TX 78216
E-mail: subvtrusteesat@gmail.com
Telephone: (210) 729-6009
About Benfield Real Estate
Benfield Real Estate, LLC is engaged in activities related to real
estate.
Benfield Real Estate filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Texas Case No.
23-51209) on Sep. 4, 2023. The petition was signed by James F.
Benfield as member. At the time of filing, the Debtor estimated $1
million to $10 million in assets and liabilities.
Judge Craig A. Gargotta presides over the case.
H. Anthony Hervol, Esq., at the Law Office of H. Anthony Hervol, is
the Debtor's bankruptcy counsel.
BLACKSTONE MORTGAGE: Fitch Lowers IDR to 'BB-', Outlook Stable
--------------------------------------------------------------
Fitch Ratings has downgraded Blackstone Mortgage Trust, Inc.'s
(BXMT) Long-Term Issuer Default Rating (IDR) to 'BB-' from 'BB'.
The Rating Outlook is Stable. Fitch has also downgraded BXMT's
secured debt ratings to 'BB-' from 'BB' and senior unsecured debt
ratings to 'B+' from 'BB-'.
Key Rating Drivers
Continued Credit Pressures: The downgrade reflects BXMT's ongoing
asset quality challenges, which Fitch expects to persist due to the
firm's significant, albeit improving, loan concentrations in office
properties. Impaired loans have risen to 9.6%, and earnings, which
were negative in 2024, will remain pressured from increased credit
provisions. Cash earnings are also likely to be adversely affected
by realized credit losses in 2025 as the firm continues to resolve
problem loans. Additionally, the downgrade considers BXMT's weaker
funding flexibility compared to peers, with unsecured debt
representing just 1.7% of total debt at YE24.
Strong Affiliation: BXMT's ratings remain supported by its
affiliation with Blackstone Inc. (BX; A+/Stable) and its external
manager, BXMT Advisors L.L.C. This relationship provides BXMT with
investment and asset management resources, risk management tools,
and bank relationships as part of one of the largest global real
estate platforms. The rating also reflects BXMT's adequate
liquidity profile in the context of its near-term corporate debt
maturities.
Narrower Investment Focus: Rating constraints include BXMT's narrow
focus on the commercial real estate (CRE) market, with elevated
loan exposures to office against the backdrop of challenging real
estate trends that have driven high non-accruals; higher leverage
relative to peers; a predominantly secured funding profile and the
distribution requirements associated with being a mortgage real
estate investment trust (REIT).
Elevated Loan Impairments: BXMT's ratio of impaired loans to gross
loans (based on net book value) was 9.6% at YE24, up from 7.9% a
year ago, as the firm continues to address its problem loans
secured by office buildings. Additionally, 14.2% of net book value,
were risk-rated 4 (on a scale of 1 to 5, with 1 representing the
lowest risk and 5 the highest risk) at YE24. These loans reflect
high risk, or a potential of realizing a principal loss due to
challenged collateral values.
While some of the 4-rated loans could be resolved over the
near-term, Fitch believes BXMT's elevated exposure to office
properties, representing 39% of net book value at Dec. 31, 2024,
will continue to pressure asset quality metrics amid elevated
interest rates. Partially mitigating these concerns are the firm's
meaningful reserves against existing impaired loans, its historical
focus on higher-quality buildings in locations with strong
demographics, and its asset management capabilities within the
broader BX platform.
Profitability Remains Challenged: BXMT reported a pretax loss of
$199.5 million in 2024, compared to pretax income of $255.3 million
in 2023. This was primarily due to a decrease in net interest
income from a lower portfolio balance, additional loans moving to
cost-recovery status, and increased credit provisioning. This
translated to pretax ROA of negative 1.0% in 2024, below the
average of 0.8% from 2020-2024, which was within Fitch's 'b'
category earnings benchmark range of 0%-1% for balance sheet heavy
finance and leasing companies with a sector risk operating
environment (SROE) score in the 'bbb' category.
Fitch believes further migration of 4-rated loans to impaired
status (5-rated) could keep provisioning levels elevated throughout
2025, pressuring returns, while net interest income could be
adversely impacted by higher levels of non-accrual loans.
Higher Than Peer Leverage: BXMT's leverage, measured by gross
debt-to-tangible equity, including non-recourse securitizations,
was 4.1x at YE24. This was higher than rated peers and within
Fitch's 'bb' category benchmark range of 4x-7x for balance sheet
heavy finance and leasing companies with a SROE score in the 'bbb'
category.
BXMT targets net leverage below 4.0x, which excludes non-recourse
and off-balance sheet debt net of unrestricted cash. On this basis,
leverage was 3.5x at 4Q24. Fitch expects leverage to remain
elevated compared to peers but below the firm's target throughout
2025, although a continued muted lending environment could allow
for modest de-leveraging as problem assets are resolved.
Reliance on Secured Funding: BXMT's funding profile is weaker than
peers, with unsecured debt representing just 1.7% of total
on-balance-sheet funding at YE24. This aligns with Fitch's 'b'
category benchmark range of 0%-10% for balance sheet heavy finance
and leasing companies. The firm has historically relied on secured
bank financing facilities, non-recourse securitizations and the
secured term loan B market for funding, which it accessed multiple
times during 2024. Fitch does not expect the firm to access the
unsecured debt markets to enhance funding flexibility over the near
term. This is due to sectoral challenges faced by BXMT.
Match-Funded: Fitch notes that BXMT's debt facilities lack capital
markets mark-to-market attributes, are match-funded, and are
over-collateralized with lender commitments, ensuring that the $1.1
billion of borrowing capacity at YE24 is readily available.
Although the firm does not face any corporate debt maturities until
April 2026, when $309.3 million of its B-1 term loan is due, sector
headwinds could pressure its ability to refinance this debt
cost-effectively.
Adequate Liquidity: As a REIT, BXMT is required to distribute at
least 90% of its annual net taxable income to shareholders, which
constrains the firm's ability to build equity and Fitch's
assessment of its liquidity. At YE24, the company had $323.5
million of cash and equivalents and $1.1 billion of borrowing
capacity on its funding lines, which Fitch believes is sufficient
to address funding needs, including loan funding commitments in the
near term.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Further deterioration in credit performance, whereby impaired and
non-performing loans (NPLs) remain elevated compared to those of
peers, even as problem loans are resolved and meaningful credit
losses are realized, adversely affecting cash earnings;
- A sustained reduction in pretax ROA at or below 1.0%;
- An inability to maintain sufficient liquidity relative to debt
maturities, unfunded commitments and margin call potential
associated with collateral loan non-performance or material credit
deterioration;
- A sustained increase in Fitch-calculated leverage above 5.0x
and/or a sustained increase in company-calculated leverage above
4.0x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Ability for BXMT to resolve problem loans without a meaningful
impact to cash earnings, such that pretax ROA and/or distributable
earnings remain in line with historical performance;
- Measured and appropriately risk-adjusted diversification into
other CRE asset classes or expansion of the business model;
- Sustained increase in the proportion of unsecured debt at or
above 25% of total debt;
- Sustained decrease in Fitch-calculated leverage at or below
4.0x;
- Consistent core earnings performance;
- Maintenance of a strong liquidity profile relative to near-term
debt maturities and unfunded commitments.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
The rating on the secured debt is equalized with the Long-Term IDR,
indicating Fitch's expectation for average recovery prospects. The
rating on the unsecured debt is notched down from BXMT's Long-Term
IDR and reflects the predominantly secured funding mix and the
limited size of the unencumbered asset pool, which suggests
below-average recovery prospects in a stressed scenario.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The secured debt rating is sensitive to changes in BXMT's Long-Term
IDR as well as changes in the firm's funding mix and collateral
coverage for secured debt. Stronger collateral coverage that
improves recovery prospects could result in the upward notching of
the secured debt ratings relative to the Long-Term IDR.
The unsecured debt rating is sensitive to changes to BXMT's
Long-Term IDR, unsecured funding mix and the level of unencumbered
assets relative to outstanding unsecured debt. The issuance of
additional unsecured debt and an increase in the size of the
unencumbered asset pool could result in a narrowing of the notching
between the senior unsecured debt and the Long-Term IDR.
ADJUSTMENTS
The Standalone Credit Profile (SCP) has been assigned below the
implied SCP due to the following adjustment reason: Asset Quality,
Asset Performance, Counterparty Exposure (negative).
The Business Profile score has been assigned below the implied
score due to the following adjustment reason: Business model
(negative).
The Asset Quality score has been assigned below the implied score
due to the following adjustment reason: Loan charge-offs,
depreciation or impairment policy (negative).
The Earnings & Profitability score has been assigned below the
implied score due to the following adjustment reason: Historical
and future metrics (negative).
The Funding, Liquidity and Coverage score has been assigned below
the implied score due to the following adjustment reason: Funding
flexibility (negative).
ESG Considerations
The highest level of ESG credit relevance is a score of '3'; unless
otherwise disclosed. 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 Prior
----------- ------ -----
Blackstone Mortgage
Trust, Inc. LT IDR BB- Downgrade BB
senior unsecured LT B+ Downgrade BB-
senior secured LT BB- Downgrade BB
BOOST NEWCO: Fitch Puts 'BB' LongTerm IDR on Watch Positive
-----------------------------------------------------------
Fitch Ratings has placed Boost Newco Borrower, LLC's (dba Worldpay)
'BB' Long-Term Issuer Default Rating (IDR) and 'BBB-' with a
Recovery Rating of 'RR1' senior secured debt on Rating Watch
Positive (RWP) following the announcement of its acquisition by
Global Payments, Inc. (GPN). Fitch expects to resolve the Watch
once the transaction closes, which may not occur until 2026.
The RWP reflects Fitch's view that higher-rated GPN has stronger
credit qualities than Worldpay and its expectation that the
issuer's debt will likely be refinanced. This would improve
Worldpay's business and financial risk profile post-acquisition,
given the combined entity's strong market position and scale.
Worldpay's ratings reflect its diversification across regional and
end-market channels, broad scale as a leading global payment
processing company, and deep relationships with many of the largest
North American and European merchants and banks.
Key Rating Drivers
Acquisition by GPN: Fitch views GPN's announcement to acquire
Worldpay for $24.25 billion as credit positive, given that the
investment-grade-rated issuer has a stronger credit profile.
Worldpay is currently owned 55% by private equity firm GTCR, and
45% by Fidelity National Information Services, Inc. (FIS).
There is strategic merit to the combination of GPN and Worldpay,
given their complementary end customer segments. The combined
entity will benefit from having larger scale in a volumes-oriented
business. Fitch views GPN's solid market position as relatively
stable in the medium term, despite competitive and fragmented end
markets and anticipates that the acquisition will create
opportunities for further diversification and geographical
expansion. The acquisition is expected to close in early 2026.
Scale Critical in Payments: Fitch views Worldpay's scale as a
differentiator and credit positive. The company is one of the
largest merchant acquirers globally, handling $2.5 trillion in
payment transactions annually in nearly 150 countries (although
most of its revenue is from North America). Scale is important in
payments and enables the company to serve some of the largest
merchants in North America and Europe. The payments industry
experienced meaningful M&A historically, which Fitch believes will
continue given technology disruption and attractive industry
dynamics, including highly recurring revenue and strong FCF
generation.
Leverage Supported by Cash Flow: Fitch expects EBITDA leverage to
be near 4.0x in the near term, which is adequate for the rating and
supported by the company's scale and stable cash generation. If the
GPN deal does not close, Fitch believes leverage could be higher in
the next few years in the low- to mid-4.0x range. M&A is a key
component of management's strategy that could lead to elevated
leverage over time, but Fitch expects the company would target
quick debt reduction following any deals that increase leverage
meaningfully.
Beneficiary of Electronic Payments Shift: Worldpay sits at the
intersection of a payments industry shift away from cash toward
electronic forms of payment, which Fitch believes will continue to
provide a revenue tailwind. The company operates part of the
"plumbing" of electronic payments — when a consumer uses a
credit/debit card in a store or on a website, it is a technology
provider enabling this transaction. Global card usage varies
meaningfully by country but will continue to capture payments share
in the future.
Positive FCF Dynamics: Higher leverage following the company's
spin-off from FIS led to lower FCF, but Fitch projects Worldpay
will continue to generate positive FCF leading up to the GPN
acquisition. Fitch projects FCF could be USD500 million to USD700
million annually from 2025-2028, adjusting for cash tax
distributions paid to investors via cash from financing. FCF
margins are projected in the double-digit range as a percentage of
revenue. This level of profitability provides some capacity for
Worldpay to gradually de-lever, but the company's focus on growth
and reinvestment in its business makes meaningful debt reduction
unlikely in the near term.
Consumer Exposure: Worldpay is highly dependent upon consumer
spending, particularly in the U.S. where it derives more than 70%
of its revenue. This creates some cyclicality during periods of
economic weakness, although industry fundamentals held up
reasonably well during the 2008-2009 downturn and came back quickly
following the 2020 pandemic. FIS's Merchant Solutions segment
(largely Worldpay) experienced 9% organic revenue declines during
2020, although it rebounded quickly with 19% growth in 2021. Vantiv
and Worldpay, which were standalone companies prior to their 2017
merger, each grew in 2009.
Highly Competitive End-Markets: The company is an industry leader
in payments processing. However, there is significant tech
disruption and pricing competition from both "legacy" fintechs and
large technology providers, as well as younger, software-centric
fintech companies. Key competitors include JPMorgan (via its Chase
Paymentech business), Fiserv, Adyen, PayPal, Block and Stripe,
among many others. Its competitive moat varies by industry channel
but is likely to remain reasonably strong over the ratings
horizon.
Peer Analysis
Worldpay's business profile and certain financial metrics compare
well against Global Payments, although Fitch expects it to operate
with meaningfully higher leverage in the next few years under
private ownership (assuming the GPN acquisition does not close).
Competitor PayPal Holdings, Inc. (A-/Stable) is much larger,
operates with meaningfully lower leverage and is more exposed to
higher growth e-commerce and digital payments end markets.
Block, Inc. (BB+/Positive) is larger, exhibits rapid growth in both
its payments and apps businesses, and has lower leverage. Shift4
Payments, Inc. (BB/Stable) is materially smaller but growing more
rapidly, and operates in a different piece of the payments value
chain.
Key Assumptions
- Organic revenue growth is in the low- to mid-single-digit range
in the next few years, with incremental contribution from M&A in
2025.
- EBITDA margins remain relatively stable near 39%-40%, with modest
pressure in 2025 due to standalone costs following the separation
from FIS.
- Capex is in the 8.5%-9.5% range of revenue.
- EBITDA leverage remains near 4.0x in the near term but could be
moderately higher as the company executes on M&A.
- Floating rate debt assumes SOFR declines to mid-3% by 2026-2028.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage sustained above 4.75x;
- FCF margins projected to be sustained in the low-single-digit
percentage or lower levels;
- Significant fundamental shifts in the business that negatively
affect revenue, EBITDA and/or FCF;
- A significantly lower level of financial flexibility could also
lead Fitch to reassess the rating;
- (CFO-capex)/debt expected to be sustained below 4%.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA leverage, or debt/EBITDA, sustained below 4x;
- Improved fundamentals including higher than projected growth in
key metrics such as revenue, EBITDA and/or FCF;
- (CFO-capex)/debt expected to be sustained at 8% or above.
Liquidity and Debt Structure
Worldpay has a solid liquidity position, with positive FCF
generation expected in the business and an undrawn revolving credit
facility. The company has roughly $1.5 billion of unrestricted
cash, excluding settlement cash as of December 31, 2024. Fitch
projects it could generate between USD500 million and USD700
million annually between 2025 and 2028, adjusting for cash tax
distributions paid to investors via cash from financing. In
addition, it has full capacity available on its approximate USD1.2
billion senior secured revolver and USD700 million of settlement
lines of credit in place, which can be used to fund interchange
fees paid to merchants, overdrafts or regulatory settlement
requirements.
The company's debt capital structure includes secured debt
instruments across multiple currencies (USD, EUR and GBP) that are
each pari passu and include a first lien on substantially all
assets of the company. Its debt includes: USD5.1 billion of senior
secured term loans, EUR500 million of senior secured term loans,
roughly USD2.1 billion of senior secured notes, GBP600 million of
senior secured notes, and approximately USD1.2 billion in a senior
secured revolving credit facility.
The revolver was undrawn as of December 2024. There is some
maturity risk given all of the term loans and secured notes mature
in January 2031, although Fitch believes the current state of the
business should support refinancing over time. Fitch believes GPN
may seek to refinance Worldpay's existing debt upon acquisition
closing in 2026.
Issuer Profile
Worldpay is one of the world's largest payment technology and
merchant acquirer companies. The company is jointly owned by
Fidelity National Information Services, Inc. and private equity
firm GTCR.
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
----------- ------ -------- -----
Boost Newco
Borrower, LLC LT IDR BB Rating Watch On BB
senior secured LT BBB- Rating Watch On RR1 BBB-
BRIGHT CARE: Gets Interim OK to Use Cash Collateral Until May 6
---------------------------------------------------------------
Bright Care Veterinary Hospital, Inc. and Bright Care Veterinary
Group, Inc. received interim approval from the U.S. Bankruptcy
Court for the Central District of California to use cash collateral
until May 6.
The interim order authorized the companies to use cash collateral
to pay the expenses set forth in their budget, with authority to
deviate from the line items contained in the budget by not more
than 15%, on a cumulative and line-item basis.
As protection for the use of cash collateral, Live Oak Banking
Company, Bank of America, N.A., and the companies' merchant cash
advance lenders were granted replacement liens to the same
validity, priority and extent as their pre-bankruptcy liens.
The companies were instructed not to make payments to any MCA
lender during the interim period.
The next hearing is set for May 6.
Live Oak Banking Company is represented by:
Bernie Kornberg, Esq.
340 Golden Shore, Suite 450
Long Beach, CA 90802
Telephone: 562.435.8002
Facsimile: 562.435.7967
bernie.kornberg@millernash.com
Bank of America is represented by:
Michele Sabo Assayag, Esq.
Rachel A. McMains, Esq.
Snell & Wilmer, L.L.P.
600 Anton Blvd., Suite 1400
Costa Mesa, CA 92626-7689
Telephone: 714.427.7000
Facsimile: 714.427.7799
massayag@swlaw.com
rmcmains@swlaw.com
About Bright Care Veterinary Hospital
Bright Care Veterinary Hospital, Inc. filed Chapter 11 petition
(Bankr. C.D. Calif. Case No. 25-10900) on April 8, 2025, listing
between $1 million and $10 million in both assets and liabilities.
Alireza Gorgi, president of Bright Care, signed the petition.
Judge Scott C. Clarkson oversees the case.
The Debtor is represented by:
David B. Golubchik, Esq.
Levene, Neale, Bender, Yoo & Golubchik L.L.P.
Tel: 310-229-1234
Email: dbg@lnbyg.com
BURGESS BIOPOWER: Unsecureds to Get Nothing in Debt-for-Equity Plan
-------------------------------------------------------------------
Burgess BioPower, LLC and Berlin Station, LLC submitted a
Disclosure Statement for the Second Amended Joint Plan of
Reorganization dated March 19, 2025.
The Debtors, with the consent of the DIP Lenders and Senior
Lenders, are pursuing a plan that includes a debt-for-equity swap
by the Debtors' DIP Lenders and Senior Lenders.
The DIP Lenders and the Senior Lenders will exchange their debt, in
the case of the DIP Lenders, 100% of their DIP Claims for 99% of
the New Reorganized Debtor Equity (consisting of 100% of the New
Reorganized Debtor Equity minus the Senior Notes Gifted
Distribution Amount), and in the case of the Senior Lenders, 100%
of the Senior Notes Claims for 1% of the New Reorganized Equity
plus any New Reorganized Debtor Equity available for distribution
after satisfaction of the DIP Claims, and will own and control the
assets of the Debtors free and clear of all liens, claims,
interests, and encumbrances.
General unsecured creditors of the Debtors (other than the DIP
Lenders and the Senior Lenders) will not receive any distribution
on account of their Allowed Unsecured Claims. The Reorganized
Debtors will, however, not pursue Avoidance Actions against the
holders of General Unsecured Claims of the Debtors subject to the
provisions of Article VIII.E of the Plan.
In addition:
* all allowed Other Secured Claims, Priority Tax Claims, and
Other Priority Claims against the Debtors will be unimpaired;
* holders of Subordinated Note Claims against Berlin will
receive nothing on account of their claims; the holders of such
Subordinated Note Claims do not hold any claims against Burgess;
and
* holders of equity interests in the Debtors will be canceled
and no payment will be made on account of any such equity
interests.
Class 5A consists of General Unsecured Claims against Berlin. On
the Plan Effective Date, all General Unsecured Claims against
Berlin will receive no distribution. The allowed unsecured claims
total $71,657,778.75. This Class will receive a distribution of $0
of their allowed claims. This Class is unimpaired.
Class 4B consists of General Unsecured Claims against Burgess. On
the Plan Effective Date, all General Unsecured Claims against
Burgess will receive no distribution. The allowed unsecured claims
total $3,877.92. This Class will receive a distribution of $0 of
their allowed claims. This Class is unimpaired.
The Debtors, with the consent of the Senior Lenders and DIP
Lenders, elected to effectuate the Restructuring through the
Restructuring Transactions.
The Reorganized Debtors shall fund distributions under the Plan
with the New Reorganized Debtor Equity, Cash on hand, and Cash
generated from operations.
From and after the Plan Effective Date, the Reorganized Debtors,
subject to any applicable limitations set forth in any post-Plan
Effective Date agreement (including the New Organizational
Documents), shall have the right and authority without further
notice to or action, order, or approval of the Bankruptcy Court to
raise additional capital and obtain additional financing as the New
Board of the applicable Reorganized Debtors deems appropriate.
A full-text copy of the Disclosure Statement dated March 19, 2025
is available at https://urlcurt.com/u?l=Wd0YPK from
PacerMonitor.com at no charge.
About Burgess BioPower
The Debtors comprise renewable energy power companies that own and
operate a 75-megawatt biomass-fueled power plant located on an
approximately 62-acre site in Berlin, New Hampshire. Berlin Station
owns the Facility and the Facility Site, and Burgess BioPower
leases the Facility pursuant to a long-term lease. Burgess BioPower
also holds the necessary regulatory licenses for the operation of
the Facility.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10235) on February
9, 2024, with $10 million to $50 million in assets and $100 million
to $500 million in liabilities. Dean Vomero, chief restructuring
officer, signed the petitions.
Judge Laurie Selber Silverstein oversees the case.
The Debtors tapped GIBBONS P.C. as Delaware counsel; FOLEY HOAG LLP
as general bankruptcy counsel; and SSG CAPITAL ADVISORS, L.P. as
investment banker.
BVI HOLDINGS: S&P Withdraws 'CCC' Long-Term Issuer Credit Rating
----------------------------------------------------------------
S&P Global Ratings withdrew its 'CCC' long-term issuer credit
rating on BVI Holdings Mayfair Ltd. at the company's request. S&P
also withdrew its 'CCC' issue-level ratings on its revolver and
first-lien term loan. The outlook on the issuer credit rating was
developing at the time of the withdrawal.
BVI repaid its rated debt following a refinancing.
CAROLINA PROUD: Ciara Rogers Named Subchapter V Trustee
-------------------------------------------------------
Brian Behr, the U.S. Bankruptcy Administrator for the Eastern
District of North Carolina, appointed Ciara Rogers, Esq., as
Subchapter V trustee for Carolina Proud Investment Group, LLC.
Ms. Rogers is a partner at Waldrep Wall Babcock & Bailey, PLLC. She
will be paid an hourly fee of $375 for her services as Subchapter V
trustee and will be reimbursed for work-related expenses incurred.
The Subchapter V trustee can be reached at:
Ciara L. Rogers, Esq.
Waldrep Wall Babcock & Bailey, PLLC
3600 Glenwood Avenue, Suite 210
Raleigh, NC 27612
Phone: (984) 480-2005
Email: crogers@waldrepwall.com
About Carolina Proud Investment Group
Carolina Proud Investment Group, LLC owns and manages a portfolio
of residential and commercial properties, including rental units
and vacant land, across multiple locations in North Carolina and
Ohio.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-01063) on March 24,
2025. In the petition signed by Anna Hromyak, member-manager, the
Debtor disclosed $1,035,550 in assets and $797,689 in liabilities.
Judge Pamela W McAfee oversees the case.
The Debtor is represented by:
Christopher Scott Kirk, Esq.
C. Scott Kirk, Attorney At Law, PLLC
Tel: 252-689-6249
Email: scott@csklawoffice.com
CENTENNIAL HOUSING: Seeks to Extend Plan Exclusivity to May 27
--------------------------------------------------------------
Centennial Housing & Community Services Corporation asked the U.S.
Bankruptcy Court for the Eastern District of North Carolina to
extend its exclusivity periods to file a plan of reorganization and
obtain acceptance thereof to May 27 and July 26, 2025,
respectively.
Pursuant to an Order entered on January 24, 2025, the current
deadline for the Debtor to file its proposed Plan of Reorganization
and Disclosure Statement is March 28, 2025. The Debtor intends to
file its proposed Plan of Reorganization and Disclosure Statement
on or before March 28, 2025.
The Debtor requests that the period in which it has the exclusive
right to file a Plan of Reorganization under Section 1121(b) of the
Bankruptcy Code and the acceptance period under Section 1121(c)(3)
of the Bankruptcy Code each be extended for a period of
approximately sixty days.
The Debtor asserts that an order allowing the extensions as
requested in this application will not prejudice any party and is
in the best interests of the Estate and all parties in interest.
About Centennial Housing & Community Services
Centennial Housing & Community Services Corp. is a 25-bed critical
access hospital offering a broad range of healthcare services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.C. Case No. 24-03769) on October 29,
2024, with $6,970,517 in assets and $11,730,050 in liabilities.
Todd Mobley, chairman of the board of directors, signed the
petition.
Judge Joseph N. Callaway oversees the case.
The Debtor is represented by:
Rebecca F. Redwine
Hendren Redwine & Malone, PLLC
Tel: 919-420-0941
Email: rredwine@hendrenmalone.com
Jason L. Hendren
Hendren Redwine & Malone, PLLC
Tel: 919-573-1422
Email: jhendren@hendrenmalone.com
CHIARO TECHNOLOGY: Chapter 15 Case Summary
------------------------------------------
Chapter 15 Debtor: Chiaro Technology Limited
1 Brunswick Square
Bristol BS2 8PE
England
Business Description: Chiaro Technology Ltd. develops and
sells women's health products under the
Elvie brand. Its offerings include
app-connected breast pumps and pelvic
floor trainers. Founded in 2013, the
Company has sold over one million
breast pumps and raised more than $100
million in funding.
Chapter 15 Petition Date: April 11, 2025
Court: United States Bankruptcy Court
District of Delaware
Case No.: 25-10691
Judge: Hon. Brendan Linehan Shannon
Foreign Representatives: Lindsay Hallam, Matthew Boyd Callaghan,
and Oliver Wright
c/o FTI Consulting LLP
200 Aldersgate Street
London EC1A 4HD
England
Foreign Proceeding: Chiaro Technology Limited (in
Administration) under the Insolvency
Act 1986, sealed and endorsed by the
High Court of Justice, Business and
Property Courts in Leeds, Insolvency
and Companies List
Foreign
Representatives'
Counsel: R. Craig Martin, Esq.
Roxanne M. Eastes, Esq.
DLA PIPER LLP (US)
1201 North Market Street, Suite 2100
Wilmington, Delaware 19801
Tel: (302) 468-5700
Fax: (302) 394-2462
Email: craig.martin@us.dlapiper.com
roxanne.eastes@us.dlapiper.com
- and -
Erik F. Stier, Esq.
500 Eighth Street, N.W.
Washington, DC 20004
Tel: (202) 799-4000
Fax: (202) 799-5000
Email: erik.stier@us.dlapiper.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 is available for free on
PacerMonitor.com at:
https://www.pacermonitor.com/view/B6XYGFA/Chiaro_Technology_Limited_in_Administration__debke-25-10691__0001.0.pdf?mcid=tGE4TAMA
CHICAGO BOARD OF EDUCATION: S&P Affirms GO Bonds Rating at 'BB+'
----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' rating on the Chicago Board
of Education's (CPS or the board) existing general obligation (GO)
and alternate revenue source (ARS) bonds.
The outlook is stable.
S&P said, "The lack of track record of budget oversight to
implement structural budget-balancing measures, the recent
political gridlock between CPS leadership and the city management
that led to board turnover and management instability, and the
ongoing contentious relationship between the board and the CTU
reflect the district's significant challenges associated with its
governance structure, in our view, that may introduce future
uncertainties on CPS' operations. We could update our opinion as
the new board settles in and if the outcome of the new governance
structure begins to influence the district's credit profile. We'll
also monitor any potential financial and operational impacts from
the replacement of the current CEO. Additionally, risk management
governance challenges regarding the poorly funded pension plan
(43.4%, according to the fiscal 2024 Annual Comprehensive Financial
Report [ACFR]) and the pension plan actuarial assumptions and
methods that we consider as weak funding discipline remain an
ongoing elevated governance risk that could lead to higher fixed
costs, albeit with dedicated revenue streams from the state and
pension levy. We note that CPS makes the full statutorily required
contribution every year.
"In our view, social risks are present for CPS, as reflected by
significant historical enrollment declines, but these risks are not
unusual for a district serving the residents of a major city given
the city of Chicago's own social risks relating to demographic
pressure, inequality, and access inequities to education, health
care, and housing, and increasing demands on budgetary resources.
Somewhat offsetting these risks is a positive governance structure
aspect related to the state EBF formula and the "hold harmless"
provision in its distribution of state aid. Under the state's
current EBF, the district's long history of enrollment decline does
not negatively affect state aid, which makes up 24% of general
operating fund revenue in fiscal 2024.
"We have also analyzed the district's environmental factor and view
it as neutral in our credit rating analysis.
"The stable outlook reflects our expectation that the board's
reserve and liquidity positions will likely remain sufficient to
support the current rating, despite the projected deficit
(including the estimated cost increases from the CTU contract) in
fiscal 2026, as the board will likely continue to work toward
addressing its structural budget gap.
"We could consider a negative rating action within the one-year
outlook period if the board fails to implement sufficient
structural budget-balancing measures in its fiscal 2026 budget and
pushes out significant budget imbalance into outyears, resulting in
recurrence of sizable operating deficits and materially weakened
reserve and liquidity positions that are no longer commensurate
with the current rating.
"A positive rating action is unlikely during the outlook period
given the board's projected deficits and still-weak liquidity
position. However, we could consider a positive rating action over
time if the board sustains a structurally balanced budget, a
positive fund balance trajectory, and continued liquidity
improvements, with a reduced amount of TANs outstanding and
negative cash flow across fewer months. We would also view the
successful transition of the board governance structure without
material impacts on the district's operations favorably. Given the
dependence on Illinois, upward rating potential is also predicated
on the state, at a minimum, funding the EBF base and not making
substantial cuts, although we view cuts as currently unlikely. We
expect that the board's high fixed costs and large unfunded pension
liabilities will continue to be constraining credit factors but
will not necessarily prevent upward potential at the current
rating."
CINEMA MANAGEMENT: Court Extends Cash Collateral Access to May 20
-----------------------------------------------------------------
John Pringle, the Chapter 11 trustee for Cinema Management Group,
LLC, received another extension from the U.S. Bankruptcy Court for
the Central District of California, Los Angeles Division, to use
cash collateral.
The third interim order signed by Judge Neil Bason authorized the
trustee to use the cash collateral until May 20 to pay the expenses
set forth in its budget, with a 10% variance.
Netflix Worldwide Entertainment LLC, Hanmi Bank, Banc of California
National Association, and Bondit LLC may assert liens on Cinema's
cash collateral.
As protection, the secured creditors will receive replacement liens
on, and security interests in, the cash collateral and all other
assets of the estate that are subject to their pre-bankruptcy
liens.
In case of any diminution in the value of their interests in their
pre-bankruptcy collateral, the secured creditors will be granted
allowed superpriority administrative expense claims in the same
priority as the replacement liens.
A final hearing is scheduled for May 20.
Banc of California N.A. is represented by:
Alex M. Weingarten, Esq.
Willkie Farr & Gallagher LLP
2029 Century Park E
Los Angeles, CA 90067
Telephone: (310) 855-3000
Facsimile: (310) 855-3099
Email: aweingarten@willkie.com
-- and --
Elizabeth A. Wayne, Esq.
Willkie Farr & Gallagher LLP
300 N LaSalle Dr
Chicago, IL 60654
Telephone: (312) 728-9000
Facsimile: (312) 728-9199
Email: ewayne@willkie.com
-- and --
Jennifer J. Hardy, Esq.
Willkie Farr & Gallagher LLP
600 Travis St
Houston, TX 77002
Telephone: (713) 510-1700
Facsimile: (713) 510-1799
Email: jhardy2@willkie.com
About Cinema Management Group
Cinema Management Group, LLC is an international sales company that
was launched in 2003 and was previously headed by veteran sales and
distribution executive, Edward Noeltner. Since 2003, the company
has added over 80 feature film titles to its line-up. It currently
holds distribution rights related to 82 feature films.
Cinema Management Group filed Chapter 7 voluntary petition (Bankr.
C.D. Calif. Case No. 24-20369) on December 20, 2024. The case was
converted to one under Chapter 11 on February 6, 2025, and John
Pringle was appointed as Chapter 11 trustee on February 10, 2025.
Judge Neil W. Bason oversees the case.
The Chapter 11 trustee is represented by Levene, Neale, Bender, Yoo
& Golubchik L.L.P.
COACH USA: Insurer Seeks Chapter 7 Case Coverage Clarification
--------------------------------------------------------------
Hope Patti of Law360 Bankruptcy Authority reports that an insurer
for Coach USA Inc. has petitioned a Delaware bankruptcy court to
confirm that it is not obligated to provide commercial auto
liability coverage for certain claims linked to the company's
operations, asserting that those claims fall under the coverage of
Coach's captive insurer.
About Coach USA
Coach USA, Inc., a company in Paramus, N.J., is a provider of
ground passenger transportation and mobility solutions in North
America, offering many types of specialized ground transportation
solutions to government agencies, airports, colleges and
universities, and major corporations.
With 25 business segments throughout the United States and Canada
employing approximately 2,700 employees and operating approximately
2,070 buses, the Coach USA network of companies carries millions of
passengers throughout the United States and Canada each year. In
addition to the household name "Coach USA," the company operates
under several other brands, including Megabus, Coach Canada, Coach
USA Airport Express, Dillon's Bus Company, and Go Van Galder.
Coach USA and its affiliates filed Chapter 11 petitions (Bankr. D.
Del. Lead Case No. 24-11258) on June 11, 2024. At the time of the
filing, Coach USA reported $100 million to $500 million in both
assets and liabilities.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Alston & Bird, LLP and Young Conaway Stargatt &
Taylor, LLP as legal counsels; Houlihan Lokey Capital, Inc. as
investment banker; and CR3 Partners, LLC as restructuring advisor.
Kroll Restructuring Administration, LLC is the Debtors' claims and
noticing agent and administrative advisor.
CONSOLIDATED BURGER: Seeks Chapter 11 Bankruptcy in Florida
-----------------------------------------------------------
On April 14, 2025, Consolidated Burger Holdings LLC filed Chapter
11 protection in the U.S. Bankruptcy Court for the Northern
District of Florida. According to court filing, the
Debtor reports between $50 million and $100 million in
debt owed to 200 and 999 creditors. The petition states funds will
be available to unsecured creditors.
About Consolidated Burger Holdings LLC
Consolidated Burger Holdings LLC and affiliates are among the
largest franchisees of Burger King, the world's second-largest fast
food hamburger chain. As of the Petition Date, they operated 57
Burger King restaurants across prime markets in Florida and
Southern Georgia. These restaurants are informally grouped into
three geographic clusters: (i) Tallahassee and Southern Georgia,
comprising 18 locations; (ii) South Florida, with 19 locations; and
(iii) the Florida Panhandle, with 20 locations. Debtor Consolidated
Holdings is the sole member and 100% equity owner of both
Consolidated A and Consolidated B.
Consolidated Burger Holdings LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-40162)
on April 14, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $50 million and $100 million each.
Honorable Bankruptcy Judge Karen K. Specie handles the case.
The Debtor is represented by Paul Steven Singerman, Esq., Jordi
Guso, Esq., Christopher Andrew Jarvinen, Esq., and Brian G. Rich,
Esq. at BERGER SINGERMAN LLP. DEVELOPMENT SPECIALISTS, INC. is the
Debtors' Restructuring Advisor. PEAK FRANCHISE CAPITAL LLC is the
Debtors' Investment Banker. OMNI AGENT SOLUTIONS, INC. is the
Debtors' Notice & Claims Agent.
CONTROLADORA DOLPHIN: Voluntary Chapter 11 Case Summary
-------------------------------------------------------
Debtor: Controladora Dolphin, S.A. de C.V.
Av. Banco Chinchorro Esquina, Acanceh MZA 1, LT 8
SM 13, Cancun, Quintana Roo, Mexico C.P. 7750
Business Description: Controladora Dolphin, S.A. de C.V. operates
as a holding company specializing in marine
life interaction parks under the Dolphin
Discovery brand. Headquartered in Cancun,
Mexico, the Company manages parks across
Mexico, the Caribbean, the United States,
and Italy. It offers various tourist
experiences, including dolphin swims and
educational marine programs.
Chapter 11 Petition Date: April 16, 2025
Court: United States Bankruptcy Court
District of Delaware
Case No.: 25-10715
Judge: Hon. Laurie Selber Silverstein
Debtor's Counsel: Robert S. Brady, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
1000 N. King Street
Wilmington, DE 19801
Tel: 302-571-6600
Email: rbrady@ycst.com
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $100 million to $500 million
The petition was signed by Steven Robert Strom as authorized
person.
The Debtor submitted a list of its 20 largest unsecured creditors,
but it was left blank with a note stating "To be provided."
Controladora Dolphin has filed a motion requesting joint
administration of its Chapter 11 case with the lead case of Leisure
Investments Holdings LLC (Bankr. D. Del. Case No. 25-10606 (LSS)).
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/WEUUKLI/Controladora_Dolphin_SA_de_CV__debke-25-10715__0001.0.pdf?mcid=tGE4TAMA
CONUMA RESOURCES: S&P Upgrades ICR to 'CCC+' on Debt Restructuring
------------------------------------------------------------------
S&P Global Ratings raised the issuer credit rating on Conuma
Resource Ltd. to 'CCC+' from 'SD' (selective default) and its
issue-level ratings on its outstanding senior secured notes to
'CCC+' from 'D'. S&P also revised its recovery rating on the notes
to '4' from '3', indicating its expectation for average recovery in
a hypothetical default.
S&P said, "Our rating primarily reflects our view that the recently
completed transaction should provide Conuma with sufficient
liquidity to cover its uses over the next 12 months. Conuma's
liquidity position improved following the completion of the
restructuring transaction. We now estimate Conuma's liquidity,
which includes a modest cash position of C$34 million as of Dec.
31, 2024, US$50 million proceeds from new priority notes, US$25
million from the issuance of preferred shares to its sponsors on
April 15, and anticipated cash funds from operations (FFO), which
should be sufficient to cover the company's projected uses of cash
over the next 12 months. Furthermore, the company's sponsors have
committed to contribute an additional US$25 million in the form of
preferred shares if the company's liquidity falls below C$40
million.
"While the risk of a near term liquidity crisis has decreased, we
continue to view the company's capital structure as unsustainable.
Under our base-case assumptions, Conuma's liquidity will likely
become strained beyond this year without new capital injection as
we estimate its sources of cash will not be sufficient to cover its
uses beyond the next 12 months. We based this on our expectation
that the company will generate thin to negative free operating cash
flows over the next few years that would be insufficient to cover
payments related to the acquisition of Quintette and Peace River
Coal as well as other potential cash bonding requirements.
"We believe the company relies on more favorable business and
financial conditions to meet its financial commitments beyond this
year. This includes potentially raising external financing (or
securing capacity for its environmental bonding requirement) in
addition to executing on production ramp up plans at Quintette amid
a less favorable met coal price environment. Notwithstanding
potential liquidity pressures beyond this year, we assume increased
production at Quintette could drive down unit cash costs from
current mine operations and lead to more favorable earnings and
cash flow generation.
"The negative outlook reflects the risk that underperformance in
Conuma's operating results relative to our estimates could exhaust
its liquidity or increase the likelihood that the company could
complete a debt restructuring transaction. In our view, the company
depends on sustainably stronger metallurgical coal prices and the
successful ramp up of production at its Quintette mine to meet its
financial obligations.
"We could lower our ratings on Conuma within the next 12 months if
we believe the company is more likely to announce a distressed
exchange or restructuring of its debt. In our view, this could
result from lower-than-anticipated metallurgical coal prices or
production volumes at Quintette contributing to weaker cash flow
generation or a potential liquidity crisis.
"We could revise our outlook to stable or upgrade Conuma within the
next 12 months if its liquidity sustainably improves, potentially
from sustained positive FOCF generation. In this scenario, we would
likely expect higher realized metallurgical coal prices in tandem
with a successful ramp up of production at Quintette."
CPIF LA ARTS: Court OKs Deal to Use Greyhawk's Cash Collateral
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, approved CPIF LA Arts District, LLC's
stipulation with Greyhawk Colyton Lender, LLC, allowing the company
to use the secured creditor's cash collateral.
The stipulation authorizes CPIF to use cash collateral in the
ordinary course of business for the line items identified in its
budget, with a 15% variance allowed.
Greyhawk was granted a replacement lien on assets acquired by CPIF
or generated post-petition similar to the secured creditor's
pre-bankruptcy collateral. These assets do not include any claims
or recoveries under Chapter 5 of the Bankruptcy Code.
About CPIF LA Arts District LLC
CPIF LA Arts District, LLC is the 100% owner of a mixed-use project
located at 1129 and 1101 East 5th Street, 445-457 South Colyton
Street, and 450-456 South Seaton Street, Los Angeles, Calif. The
property, valued at $22.6 million, spans approximately 45,722
square feet and is improved with a 91,200-square-foot mixed-use
building. It includes nine retail units on the ground floor and 13
apartments/lofts on the second floor.
CPIF sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. C.D. Calif. Case No. 25-12827) on April 7, 2025. In its
petition, the Debtor reported total assets of $22,702,276 and total
liabilities of $9,706,901.
Judge Sheri Bluebond handles the case.
The Debtor is represented by David B. Golubchik, Esq., at Levene
Neale Bender Yoo & Golubchik, LLP.
CREATIVEMASS HOLDINGS: Seeks Chapter 11 Bankruptcy in Delaware
--------------------------------------------------------------
On April 14, 2025, Creativemass Holdings Inc. filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of
Delaware. 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 Creativemass Holdings Inc.
Creativemass Holdings Inc. founded in June 2020 as a Delaware
holding company, managed five subsidiaries across Australia, Japan,
the UK, and the US. The group's operations were primarily driven by
Creativemass Enterprises Pty Ltd., an Australian firm incorporated
in 2017 and led by Michael Rouse, who also headed the parent
company. Its core offering was WealthConnect, a subscription-based
wealth management platform developed between 2017 and 2019, which
anchored the group's broader push to deliver fintech solutions to
the financial services sector.
Creativemass Holdings Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10695)
on April 14, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Mary F. Walrath handles the case.
The Debtor is represented by Joseph C. Barsalona II, Esq., Michael
Custer, Esq., and Alexis R. Gambale, Esq. at PASHMAN STEIN WALDER
HAYDEN, P.C. NOVO ADVISORS, LLC is the Debtor's Financial Advisor.
STRETTO is the Debtors' Claims/Noticing Agent.
CUTERA INC: Receives Court OK for Chapter 11 w/ Opt-Out Releases
----------------------------------------------------------------
Vince Sullivan of Law360 Bankruptcy Authority reports that on April
16, 2025, a Texas bankruptcy court signed off on skincare
technology company Cutera Inc.'s Chapter 11 plan, upholding the
inclusion of an opt-out provision for third-party releases despite
opposition from the U.S. Trustee's Office.
The Troubled Company Reporter, citing Alex Wolf of Bloomberg Law,
previously reported that the U.S. Trustee's Office has objected to
Cutera Inc.'s Chapter 11 reorganization plan, arguing it includes
unauthorized provisions that would release third parties from
potential legal claims without the necessary consent of affected
creditors.
In a filing on January 9, 2025, with the U.S. Bankruptcy Court for
the Southern District of Texas, the Justice Department unit urged
the court to deny or revise the plan, which it says improperly aims
to protect company insiders, advisers, and major creditors from
future lawsuits.
About Cutera Inc.
Cutera, Inc., offers aesthetic and dermatological solutions to
medical professionals worldwide. The Company designs, manufactures,
and sells energy-based product platforms for medical use, as well
as distributes third-party skincare products. Its portfolio
includes various system platforms such as AviClear, enlighten,
excel HR, excel V/V+, truSculpt, Secret PRO, Secret DUO, Secret RF,
xeo, and xeo+, which allow practitioners to perform a wide range
of procedures. These procedures include treatments for acne, body
contouring, skin resurfacing and rejuvenation, hair and tattoo
removal, the elimination of benign pigmented lesions, and vascular
conditions. Many of Cutera's systems feature multiple handpieces
and applications, offering customers the flexibility to upgrade
their equipment.
Cutera Inc. and Crystal Sub, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
25-90088) on March 5, 2025, with $200,881,854 in total assets and
$480,459,932 in total liabilities. Taylor Harris, chief executive
officer, signed the petition.
Judge Alfredo R. Perez presides over the case.
The Debtors tapped Hunton Andrews Kurth LLP as local bankruptcy
counsel; Ropes & Gray LLP as general bankruptcy counsel; Houlihan
Lokey Capital, Inc., as investment banker; FTI Consulting, Inc. as
financial advisor and Kurtzman Carson Consultants, LLC d/b/a
Verital Global as notice, claims, solicitation & balloting agent.
DAV SUB: Katharine Battaia Clark Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 6 appointed Katharine Battaia Clark of
Thompson Coburn, LLP as Subchapter V trustee for DAV Sub Inc.
Ms. Clark will be paid an hourly fee of $525 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Clark declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Katharine Battaia Clark
Thompson Coburn, LLP
2100 Ross Avenue, Ste. 3200
Dallas, TX 75201
Office: 972-629-7100
Mobile: 214-557-9180
Fax: 972-629-7171
Email: kclark@thompsoncoburn.com
About DAV Sub Inc.
DAV Sub Inc., operating as Continuum Health Technologies, is a
provider of business process services, specializing in cloud-based
solutions to improve healthcare operations, particularly in revenue
cycle management. The Company's suite of products automates key
processes like patient estimations, claims processing, data
aggregation, and collections. With tools like Estimator, Discovery,
Guardian, and Challenger, healthcare organizations can increase
financial transparency, reduce claim denials, and streamline
revenue cycle management through automation and predictive
analytics.
DAV Sub Inc. sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 25-40968) on March
20, 2025. In its petition, the Debtor reported total assets of
$1,418,538 and total liabilities of $2,868,496 as of March 31,
2025.
Judge Edward L. Morris handles the case.
The Debtor is represented by:
Jeff Prostock, Esq.
VARTABEDIAN HESTER & HAYNESS LLP
301 Commerce St. Ste 3635
Fort Worth TX 76102
Tel: (817) 877-4223
Email: jeff.prostok@vhh.law
DAVIS AUTO: Court OKs Owensboro Sale to Blackliner Enterprises
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Kentucky,
Owensboro Division, has granted Davis Auto Group LLC to sell Real
Property, free and clear of liens, interest, and encumbrances.
The Court has authorized the Debtor to its Real Property located at
250 Southtown Blvd., Owensboro, Kentucky 42303.
The Court acknowledged that the Debtor has identified Blackliner
Enterprises LLC, a Florida limited liability company, as the
successful bidder for Property.
The Court has determined that the Debtor has articulated reasonable
and sufficient business reasons to grant the relief requested.
The Court further held that the price of the Property to be sold is
fair and reasonable, highest and best offer received for the
Property, and in the best interest of the Debtor's estate.
The Debtor is the sole and rightful owner of the Property with all
right, title and interest to transfer and convey the Property to
the Successful Bidder, and no other person has any ownership right,
title, or interest therein than those persons or entities who have
validly perfected liens and security interests in the Property.
About Davis Auto Group LLC
On December 6, 2024, True BDC, Inc., Green Beehn Lawncare, LLC,
Relic Investment Properties, LLC (collectively known as the
"Petitioning Creditors") filed the involuntary petition for relief
under chapter 11 of the Bankruptcy Code against Davis Auto Group,
LLC (Bankr. D. Ky. Case No. 24-40815).
The petitioners' counsel is Andrew David Stosberg, Esq. at Gary Ice
Higdon, PLLC.
Judge Charles R Merrill handles the case.
DIAMOND SURFACES: Kathleen DiSanto Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Kathleen DiSanto, Esq., at
Bush Ross, P.A., as Subchapter V trustee for Diamond Surfaces and
Supply, Inc.
Ms. DiSanto will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. DiSanto declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kathleen L. DiSanto, Esq.
Bush Ross, P.A.
P.O. Box 3913
Tampa, FL 33601-3913
Phone: (813) 224-9255
Fax: (813) 223-9620
Email: disanto.trustee@bushross.com
About Diamond Surfaces and Supply
Diamond Surfaces and Supply Inc. offers high-quality flooring
products, including engineered wood and AquaShield options. The
Company works with trusted suppliers like AquaShield for
water-resistant flooring, Sika Adhesives for strong bonding, True
Touch for engineered wood, Titan Surfaces for durable options, and
Top Star Underlayment for added stability and noise reduction.
Focused on innovation and customer satisfaction, Diamond Surfaces
provides a flooring visualizer to help clients choose the best
products for their needs.
Diamond Surfaces and Supply sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01682) on March
20, 2025. In its petition, the Debtor reported total assets of
$3,413,291 and total liabilities of $1,733,616.
Judge Roberta A. Colton handles the case.
The Debtor is represented by Buddy D. Ford, Esq., at Buddy D. Ford,
P.A.
DOS POTRILLOS: Case Summary & One Unsecured Creditor
----------------------------------------------------
Debtor: Dos Potrillos LLC
524 East 19th Street
Long Beach, CA 90806
Business Description: Dos Potrillos LLC is engaged in the business
of leasing real estate properties.
Chapter 11 Petition Date: April 16, 2026
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-13141
Debtor's Counsel: Moses S. Bardavid, Esq.
LAW OFFICES OF MOSES S. BARDAVID
15910 Ventura Boulevard
Suite 1405
Encino, CA 91436
Tel: (818) 582-3463
Email: mbardavid@hotmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by David Romero as chief executive
officer.
The Debtor has identified John Edward Flanagan, residing at 1320
West 16th Street, Long Beach, CA 90813, as its sole unsecured
creditor, holding a personal injury claim in the amount of
$35,000.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/CNJD25I/Dos_Potrillos_LLC__cacbke-25-13141__0001.0.pdf?mcid=tGE4TAMA
DPL LLC: S&P Raises Issuer Credit Rating to 'BB+', Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings raised the issuer credit rating (ICR) on DPL LLC
to 'BB+' from 'BB', the ratings on DPL's senior unsecured debt to
'BB+' from 'BB', and the ratings on the capital securities issued
by DPL Capital Trust II to 'B+' from 'B'.
S&P also raised the ICR on subsidiary Dayton Power & Light Co. (dba
AES Ohio) to 'BBB-' from 'BB' and the ratings on AES Ohio's first
mortgage bonds (FMBs) to 'BBB+' from 'BBB'.
The stable outlook on AES Ohio reflects its expectation that the
company will maintain stand-alone forecasted funds from operations
(FFO) to debt averaging 12%-15%.
The stable outlook on DPL reflects S&P's expectation the company
will maintain consolidated forecasted FFO to debt averaging
9%-12%.
On April 4th, DPL LLC announced that it sold a 30% indirect
interest in subsidiary Dayton Power & Light Co. (dba AES Ohio) to
Astrid Holdings L.P., a wholly owned subsidiary of Caisse de depot
et placement du Quebec (CDPQ), for approximately $544 million.
DPL plans to use proceeds to repay $415 million of holding company
debt and for general corporate purposes.
The upgrades to DPL and AES Ohio follow DPL's sale of a 30%
indirect minority interest of AES Ohio to CDPQ. DPL plans to use
the $544 million of proceeds to redeem its $415 million senior note
maturity due in July and to fund general corporate purposes,
thereby significantly reducing its leverage. As such, S&P expects
the company's forecasted FFO to debt to improve to about 9%-12%. In
2024, DPL's FFO to debt was 4.7%. S&P's base case assumes capital
spending that averages about $430 million annually, a constructive
outcome in AES Ohio's ongoing rate case, effective management of
regulatory risk by AES Ohio, the maintenance of AES Ohio's capital
structure near levels authorized by its regulators, negative
discretionary cash flow, no incremental debt financing at the DPL
holding company level, and the refinancing of all debt maturities
aside from the senior note to be redeemed in May with cash proceeds
from the minority interest sale.
S&P said, "Following our review of the shareholder agreements
between DPL and CDPQ that govern AES Ohio, we view the cumulative
value of the structural and separateness insulating measures in
place as well as the strength of AES Ohio's stand-alone credit
profile (SACP) as sufficient to rate AES Ohio up to two notches
above the DPL group credit profile (GCP)." S&P's analysis of the
insulating measures incorporates the following:
-- AES Ohio is a separate legal entity with its own regulated
capital structure, maintains its own records, and does not
commingle funds, assets, or cash flows with the rest of the DPL
group.
-- AES Ohio has its own debt arrangements and operations that are
separate from DPL.
S&P believes there is a strong economic basis for DPL to preserve
the credit strength of AES Ohio, reflecting AES Ohio's
monopolistic, essential, and profitable electric utility
operations.
CDPQ is a significant minority shareholder of AES Ohio and has an
active economic interest with board member representation.
Put-option provisions that enable CDPQ to sell back its indirect
interest in AES Ohio to DPL if CDPQ's nominated directors vote
against major board decisions, which include changes to the
dividend policy or commencement of a voluntary bankruptcy filing.
Anti-dilutive measures in place to ensure that CDPQ can maintain
its economic interest at current levels.
There are no cross-default provisions between ultimate parent AES,
DPL, and AES Ohio (or the intermediary holding companies between
the entities) and the minority shareholder's governance rights
support our opinion that a default at DPL would not directly lead
to a default at AES Ohio.
Because of our assessment of AES Ohio's separateness, the
structural insulating measures in place, and AES Ohio's SACP, S&P
raised the ICR on AES Ohio to 'BBB-' or one notch above DPL's GCP.
S&P Global Ratings believes there is a high degree of
unpredictability regarding 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 its guidance accordingly.
DR. JOHN C. DRAGON: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Dr. John C. Dragon, OD & Associates, PLC
7525 Tidewater Drive, Suite 41
Norfolk, VA 23505
Business Description: Dr. John C. Dragon, OD & Associates, PLC
dba Southern Eyecare Associates, located in
Norfolk, Virginia, offers a range of
optometric services, including routine eye
exams, contact lens fittings, treatment for
dry eyes, emergency care, and co-management
of LASIK and cataract surgeries. The
practice also provides designer eyeglasses
and prescription sunglasses.
Chapter 11 Petition Date: April 17, 2025
Court: United States Bankruptcy Court
Eastern District of Virginia
Case No.: 25-70854
Debtor's Counsel: Paul Driscoll, Esq.
ZEMANIAN LAW GROUP
223 East City Hall Ave.
Norfolk, VA 23510
Tel: (757) 622-0090
E-mail: paul@zemanianlaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by John C. Dragon as president.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/M53XOYY/Dr_John_C_Dragon_OD__Associates__vaebke-25-70854__0001.0.pdf?mcid=tGE4TAMA
EGZIT CORPORATION: Court Extends Cash Collateral Access to May 9
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
extended Egzit Corporation's authority to use cash collateral from
April 11 to May 9.
The seventh interim order signed by Judge Deborah Thorne authorized
the company to use cash collateral in accordance with its budget,
which outlines the company's projected monthly operational costs of
$267,191.12.
The next hearing is set for May 7.
About Egzit Corporation
Egzit Corporation is a provider of general freight trucking
services in Darien, Ill.
Egzit Corporation filed Chapter 11 petition (Bankr. N.D. Ill. Case
No. 24-13990) on Sept. 20, 2024, with $1 million to $10 million in
both assets and liabilities. Neema Varghese of NV Consulting
Services serves as Subchapter V trustee.
Judge Deborah L. Thorne oversees the case.
The Debtor is represented by:
Peter C. Nabhani, Esq.
Law Office Of Peter C. Nabhani
Tel: 312-219-9149
Email: pcnabhani@gmail.com
EL DORADO: Court Approves Fair Oak Ranch Property Sale
------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Mississippi
has approved Dawn M. Ragan, the Chapter 11 trustee El Dorado Gas &
Oil Inc. and its affiliates, to sell Fair Oaks Ranch, free and
clear of all liens, claims, encumbrances, and interests.
The Debtors' Property is located at 29630 Double Eagle Circle, Fair
Oak Ranch, TX 78015, Bexar County, Texas.
The Court has determined that the Trustee has demonstrated good,
sufficient, and sound business purpose and justification for the
sale of the Real Property and the proposed sale presents the best
opportunity to maximize value of the Real Property and will provide
a greater recovery for the Debtor's estate.
The Court ordered the Trustee to pay all transaction and closing
costs, including any property taxes and a commission to the
Purchasers' broker equal to 2% of the purchase price of the Real
Property.
The ad valorem taxes shall be paid in accordance with applicable
law and such payment (base levy plus statutory interest) shall not
include penalties for pre-petition taxes. Postpetition tax
liability shall be paid in accordance with applicable law and such
payment shall include
base levy, statutory interest and statutory penalties.
About El Dorado Gas & Oil Inc.
Hugoton Operating Company, Inc. filed a voluntary Chapter 11
petition (Bankr. S.D. Miss. Case No. 23-51139) on Aug. 14, 2023. El
Dorado Gas & Oil, Inc., a company in Gulfport, Miss., filed Chapter
11 petition (Bankr. S.D. Miss. Case No. 23-51715) on Dec. 22, 2023,
with $500 million to $1 billion in assets and $50 million to $100
million in liabilities. Thomas L. Swarek, president, signed the
petition.
On Feb. 22, 2024, Bluestone Natural Resources II - South Texas, LLC
and World Aircraft, Inc. filed separate Chapter 11 petitions(Bankr.
S.D. Miss. Case Nos. 24-50223 and 24-50224).
On Jan. 12, 2024, the Court entered an order directing the
appointment of a Chapter 11 trustee for Hugoton. On Jan. 22, 2024,
the Court approved Dawn Ragan as the Chapter 11 trustee for
Hugoton.
On Jan. 31, 2024, the Court ordered the appointment of a Chapter 11
trustee for El Dorado. On Feb. 2, 2024, the Court approved Ms.
Ragan as Chapter 11 trustee for El Dorado.
No official committee of unsecured creditors has been established
in any of the Debtor cases.
Hugoton and El Dorado are both Arkansas corporations engaged in the
exploration, production, and development of crude oil and natural
gas properties. El Dorado is a lease holder and operator of oil
and
gas wells covering about 4,000 net acres in South Texas. El Dorado
also owns a substantial amount of oil field equipment and owns real
estate in multiple locations and states. Hugoton also owns oil and
gas interests and operates wells in South Texas.
Hugoton is 100% owned by El Dorado and El Dorado is 100% owned by
Thomas Swarek. Bluestone is 100% owned by Hugoton. Bluestone owns
oil and gas interests operated by the EDGO Debtors. World Aircraft
is 100% owned by EDGO. World Aircraft owns various aircraft and
equipment assets.
Judge Katharine M Samson oversees the cases.
Patrick Sheehan, Esq., at Sheehan & Ramsey, PLLC, is Debtors
Bluestone Natural Resources II-South Texas, LLC and World Aircraft,
Inc.
R. Michael Bolen, Esq., at Hood & Bolen, PLLC; and Nancy Ribaudo,
Esq., Katherine Hopkins, Esq., and Joseph Austin, Esq., at Kelly
Hart & Hallman LLP, serve as counsel to Dawn Ragan, Chapter 11
Trustee for El Dorado Gas & Oil, Inc. and Hugoton Operating
Company, Inc.
ELANCO ANIMAL: S&P Alters Outlook to Positive, Affirms 'BB-' LT ICR
-------------------------------------------------------------------
S&P Global Ratings revised its outlook on Elanco Animal Health Inc.
to positive from stable to reflect its strong revenue growth
potential, as well as the execution risk associated with its new
product launches and ongoing macroeconomic uncertainty.
S&P said, "At the same time, we affirmed our 'BB-' long-term issuer
credit rating on the company, our 'BB' issue-level rating on its
revolver and term loan B, and our 'B+' issue-level rating on its
unsecured notes."
Elanco Animal Health Inc. used the proceeds from a divestiture to
reduce its debt and ended 2024 with net leverage of less than 4.5x,
which is a level S&P Global Ratings views as consistent with a
higher rating. Although we expect the company will maintain
leverage of less than 4.5x, it has a limited history of maintaining
lower leverage and forecasts declining EBITDA in 2025 due to
elevated product launch costs.
S&P said, "The positive outlook reflects the at least one-in-three
chance we will raise our ratings on Elanco in the next 12 months
because we increasingly expect it will maintain net leverage of
below 4.5x. Following the divestiture of its aqua business, the
company paid down more than $1 billion of its gross debt, which
reduced its annual interest expense by about $65 million, and ended
2024 with S&P Global Ratings-adjusted leverage of 4.2x. We view
this as indicating a shift by Elanco to a more-conservative
financial policy, given that it has maintained leverage of more
than 5x since 2019. Additionally, despite the loss of about $165
million in annual revenue from the divestiture, we believe the
company is strengthening its business. Following the recent
launches of Bovaer for methane reduction in dairy cattle, Zenrelia
for canine dermatology, and Credelio Quattro for canine parasites,
we view Elanco's innovative product pipeline as positioned to
support increasing revenue and higher margins, which we anticipate
will enable it to further reduce its leverage.
"Our rating on Elanco is currently constrained by the execution
risk associated with its new products and its limited history of
maintaining lower leverage. The company has guided for a decline in
its EBITDA in 2025 due to elevated product launch costs,
foreign-exchange headwinds, and the divestiture of the aqua
business. Despite overcoming some delays, Elanco's recently
launched products face challenging industry dynamics. For example,
the company must build a market for Bovaer, a first-in-class
methane reduction agent in dairy cattle, while combatting the
rollback of environmental reforms in some markets and the spread of
disinformation in the U.K. Meanwhile, Zenrelia faces a boxed
warning label that could slow its adoption, as well as an
entrenched competitor in Zoetis's Apoquel, which drove Elanco to
offer the product at a discount. The company is also preparing for
an additional product launch in the canine dermatology space with a
differentiated monoclonal antibody potentially launching in 2026.
"Although current international trade dynamics could exacerbate
some of our concerns, we expect these headwinds will have only a
modest effect on Elanco's creditworthiness. The company has a
global sales and manufacturing footprint, which will position it
favorably to deal with effects of tariffs and trade protectionism.
Following its acquisition of Bayer's animal health business in
2020, we view Elanco as well positioned in Europe. Additionally,
the company has two manufacturing facilities in mainland China, one
in Taiwan, and one in Mexico that could dampen the effect of
increased trade protectionism on its costs, particularly over an
extended timeline. Over the near term, uncertainty around the
diversity of Elanco's supply chain could be a concern. Given the
dynamic situation, our outlook provides some leeway for the
company's leverage to rise above 4.5x, particularly if it occurs
due to tariff concerns. In particular, if the company chooses to
build up inventory at an accelerated pace to avoid tariff-related
costs, this could reduce its cash balances and increase its net
leverage."
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, "Our rating on Elanco continues to reflect its position
as one of the leading companies in the animal health market, which
we believe benefits from solid long-term growth potential. The
company's revenue is split nearly evenly between its farm animal
(51% of 2024 revenue) and companion animal (48%) businesses but
further diversified by product and geography. Elanco benefits from
high switching costs for many of its products, a reputation for
quality, and well-established customer relationships. Additionally,
the market life for many of the company's products exceeds the
exclusivity period of its patents. We believe Elanco is
well-positioned to benefit from the ongoing long-term trends toward
increased spending on pets and rising demand for meat, stemming
from the ongoing global population expansion, and view these trends
are largely resistant to business cycle fluctuations."
The company's concentration in animal health exposes it to changes
in regulation, shifting consumer preferences, adverse weather, and
animal disease outbreaks, though we believe it is relatively
diversified by region, product, and species. Elanco's top five
products (Advantage family, Seresto, Rumensin, Maxiban/Monteban,
and Credelio family) accounted for about 36% of its 2024 revenue.
In addition, the company generated about 54% of its 2024 revenue
from outside of the U.S., which its largest non-U.S. markets
(China, Brazil, and the U.K.) each accounted for about 4% of its
revenue.
S&P said, "The positive outlook reflects there is at least a
one-in-three chance we will raise our ratings on Elanco in the next
12 months if it sustains leverage of below 4.5x despite its
elevated product launch costs and ongoing macroeconomic
uncertainty.
"We could revise our outlook on Elanco to stable if we expect it
will sustain leverage of more than 4.5x. Given our expectations for
declining EBITDA in 2025, as well as the potential that tariff
concerns could lead to elevated working capital spending, we would
tolerate a spike in the company's leverage to more than 4.5x in
2025 as long as we expect it will deleverage below 4.5x shortly
afterward.
"Although unlikely given Elanco's relatively high debt levels, we
could also revise our outlook to stable if it engaged in any
significant debt-funded mergers or acquisitions.
"We could consider raising our rating on Elanco if we expect it
will sustain S&P Global Ratings-adjusted debt to EBITDA of less
than 4.5x. Under this scenario, we would expect the company's new
product launches to be relatively successful such that it
materially improves its operating margins in 2026 and 2027 relative
to our expected 2025 levels."
ELEVATE TEXTILES: S&P Downgrades ICR to 'CCC+', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered the issuer credit rating to 'CCC+' from
'B-' on Elevate Textiles Holding Corp.
S&P said, "Concurrent with the downgrade, we lowered the
issue-level rating on the company's $104.5 million first-out term
loan to 'B' from 'B+' and the issue-level rating on the $249.6
million last-out term loan to 'CCC+' from 'B-'. The recovery
ratings remain unchanged at '1' and '4', respectively.
"The negative outlook reflects the possibility that we could lower
our ratings if the risk of a near-term default increases such that
we envision a specific default scenario in the subsequent 12
months.
"The downgrade reflects Elevate's continued negative FOCF and
tightening liquidity, supporting our view that the capital
structure is unsustainable. Despite modest improvement in Elevate's
operating performance in fiscal 2024 (ended Dec 2024), adjusted
EBITDA interest coverage remained weak at 1.3x at year-end 2024,
below our 1.5x downside threshold. The company's total revenue in
2024 increased 1.8% year over year, mainly from growth in its
threads division, partially offset by a sales decline in the
technical fabrics and cone denim division. However, the company
incurred additional restructuring charges of $10.7 million related
to its manufacturing footprint consolidation in 2024 on top of the
$18.6 million charge in 2023. We expect the company to incur
additional costs of about $14 million in 2025 related to its
manufacturing footprint consolidation, which will continue to
depress its EBITDA.
"FOCF in 2024 remains negative $38 million, and we expect FOCF of
around negative $55 million in 2025 due to increased capital
expenditure (capex). The company plans to invest $58 million of
capex in 2025, with $48 million toward strategic projects such as
the China plant relocation and the North American footprint
project, and the remainder for information technology upgrades and
machinery and equipment investment. This is elevated from $32
million in 2024 and will further pressure cash flow.
"We believe Elevate is increasingly dependent on favorable
business, financial, and economic conditions to meet its debt
obligations. The company completed a debt recapitalization in June
2023 and pushed out the maturities of its asset-based lending (ABL)
facility and term loans to 2027. The last-out term loan has the
option for payment-in-kind (PIK) interest in the second year,
depending on the company's debt service coverage ratio (DSCR). The
company has been paying interest in kind as its DSCR is below
1.25x. We forecast the DSCR to remain below 1.25x and expect the
company to continue paying PIK interest on its last-out term loan
in 2025.
"We revised liquidity to less than adequate from adequate. Elevate
had about $112 million of liquidity as of the end of 2024,
including about $50 million of cash and $62.5 million of revolver
availability. We do not incorporate the foreign short-term credit
availability as a source of liquidity. We forecast the company will
need to draw on its revolver to fund its capex investment in 2025.
"The company has a springing fixed-charge coverage of 1x that is
triggered when the excess availability under its ABL falls below
the greater of 10% of its commitment or $10 million. We expect
Elevate to draw on its ABL just under the threshold so it will not
trigger this covenant. If the covenant is triggered, we believe the
company will not be in compliance, given our projections. While we
do not anticipate a near-term payment default, we believe the
company's liquidity could tighten further if its profitability
weakens.
"We believe Elevate is moderately exposed to tariff risk. Elevate
operates business-to-business (B2B) and manufactures components of
end-user products for its customers. According to the company,
roughly 13%-14% of Elevate's total revenue is generated from goods
sold to its Mexico customers that are put into products that are
ultimately shipped to the U.S. Roughly 3%-5% of its total revenue
is from goods sold to its China customers and ultimately shipped to
the U.S.
"As a result, while we are still monitoring the direct impact of
tariffs, we believe the indirect economic impact will pressure the
global economy and, in turn, customer demand. In addition, the
pressure from Elevate's customers could lead them to push Elevate
to lower its price as they try and renegotiate supplier agreements,
which could hinder margins. We believe the denim business is more
exposed to tariff risk than the threads business.
"Overall, we anticipate that tariffs will have a modest impact on
the company's margin in 2025. We believe the company's pricing
power is limited, and it would mitigate the impact of tariffs by
implementing cost-saving actions
"The negative outlook reflects the possibility that we could lower
our ratings if the risk of a near-term default increases such that
we envision a specific default scenario in the subsequent 12
months."
S&P could lower the ratings if it envisions a specific default
scenario, including a near-term liquidity shortfall or covenant
default. This could happen if:
-- Consumer demand remains weak as a recession hampers the
consumer's ability to spend, and sales and profitability
deteriorate;
-- The company's exposure to tariffs is greater than expected, and
it is forced to absorb the higher costs in a way that impairs its
margins; or
-- S&P expects deeper and protracted levels of negative cash flow
and an inability to fund its debt service requirements.
S&P could take a positive rating action if the company demonstrates
consistent profit growth and sustained positive FOCF such that it
no longer considers its capital structure as unsustainable over the
long term. This could happen if:
-- The demand environment improves and the company increases sales
and profitability, such that its EBITDA interest coverage is
sustained comfortably above 1.5x; and
-- The company generates positive FOCF and comfortably exceeds
debt service requirements.
ENFIELDS AUTO: Craig Geno Named Subchapter V Trustee
----------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Craig Geno, Esq., at
the Law Offices of Craig M. Geno, PLLC, as Subchapter V trustee for
Enfields Auto, LLC.
Mr. Geno will be paid an hourly fee of $250 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Geno declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Telephone: (601) 427-0048
Facsimile: (601) 427-0050
Email: cmgeno@cmgenolaw.com
About Enfields Auto
Enfields Auto, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tenn. Case No. 25-21410) on March 17,
2025, with $500,001 to $1 million in assets and $100,001 to
$500,000 in liabilities.
Judge M. Ruthie Hagan presides over the case.
Toni Campbell Parker, Esq. at the Law Office Of Toni Campbell
Parker represents the Debtor as legal counsel.
ENSONO INTERMEDIATE: S&P Alters Outlook to Pos., Affirms 'B-' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on Ensono Intermediate
HoldCo Inc. to positive from stable and affirmed all of its
ratings, including the 'B-' issuer credit rating.
S&P said, "The positive outlook reflects our expectation the
company will continue to increase its revenue and EBITDA over the
next 12 months while executing its growth strategy, which will
enable it to improve its leverage below 6.5x and sustain it at that
level. We expect this will lead to an increase in Ensono's FOCF,
which will provide it with greater flexibility to fund its growth
investments.
"Ensono strongly increased its revenue and EBITDA over the past 12
months and we expect its performance will remain robust, leading it
to reduce its leverage below 6.5x over the next 12 months. In 2025,
we expect the company's revenue and EBITDA will benefit from its
new customer wins, upselling opportunities, and cost controls as it
continues to strongly increase its bookings. We estimate Ensono's
S&P Global Ratings-adjusted debt leverage improved to 6.8x as of
the end of 2024 from 7.4x a year earlier. We expect the company
will further improve its leverage to about 6.0x by the end of 2025
as it increases its EBITDA on rising revenue and an expansion of
its margin. We expect Ensono will increase its revenue by the low
double-digit percent area in 2025 while improving its EBITDA at a
slightly faster pace due to its improved operating leverage, lower
one-time costs, and reduced integration expenses. In 2024, the
company onboarded about 20 new high-profile logos, which enhanced
its customer diversity and recurring revenue.
"We expect Ensono will continue to generate modest FOCF in 2025
before expanding its FOCF generation in 2026. We believe the
company generated $5 million-$15 million of FOCF in 2024, and we
forecast $30 million-$40 million of FOCF in 2025, which would mark
a significant improvement from the $61 million FOCF deficit it
reported in 2023. Ensono has improved its FOCF through the
expansion of its EBITDA, as well as a reduction in its interest
expenses and improving working capital. In 2024, the company
strengthened its balance sheet by refinancing its $250 million
second-lien term loan with cheaper first lien debt, which reduced
its interest expense burden and improved the overall cost of its
debt. While we expect Ensono's working capital will be a larger use
of cash in 2025 than in 2024, due to the upfront costs associated
with adding large clients, we believe it will more than offset the
working capital usage with higher EBITDA and lower interest
expense. Although the company's FOCF after software and finance
lease payments remains negative, it has significantly improved this
figure, and we expect it will continue to strengthen this measure
such that it will potentially approach breakeven in 2026 or 2027.
Although we generally view negative FOCF generation as associated
with lower ratings, the primary reason for Ensono's deficits is the
up-front cash outlays necessary for its expansion. These outlays
only occur after the company has signed a long-term, committed
contract, usually with blue-chip customers. In the event of a
recession or significant capital market disruption, the company
could reduce its growth spending and harvest the cash flows from
its existing contracts. Ensono also has a large multiyear
contractual order backlog that provides it with good revenue
visibility.
"We expect some of the company's bookings from 2023 and 2024 will
become accretive to its cash flow this year. Many of the new
contracts Ensono has booked since its sponsors shifted to a
high-growth strategy have reached their breakeven point and begun
providing it with recurring cash flow in 2024. At the same time, we
expect the company's cash outlays on software and equipment for its
new bookings will decline as a percentage of its revenue as it
grows, assuming it takes on new mainframe clients at a reasonable
pace that allows it to convert its recent wins to cash.
"Financial-sponsor KKR may continue to employ aggressive financial
policies to accelerate Ensono's expansion, though we believe its
increased proportion of contractual monthly recurring revenue will
support its capital structure. If there is a significant
acceleration in the expansion of its bookings, the company may need
to raise more capital than expected to support the new contracts.
Additionally, with incremental debt financing, Ensono's financial
flexibility will decline as its interest expense and leverage
increase, which could ultimately affect its timeline for generating
positive cash flow (after accounting for its software license
payments and equipment lease payments). Despite the company's
financial-sponsor ownership, it has invested all of its cash flow
into to the business and has not taken any dividends. Also, we
believe that Ensono's expansion of its monthly recurring revenue
under its long-term contracts enhances its ability to meet its
current and future debt obligations.
"The positive outlook reflects our expectation Ensono will increase
its revenue and EBITDA over the next 12 months while continuing to
execute its growth strategy, enabling it to reduce its S&P Global
Ratings-adjusted leverage below 6.5x and sustain it at that level.
We expect this will also lead to an increase in the company's FOCF,
which will improve its flexibility to fund its growth investments.
"We could revise our outlook on Ensono to stable if its leverage
remains high due to a need for greater-than-expected external
financing to fund its growth investments combined with limited
revenue and EBITDA growth. We could also revise our outlook on the
company if we believe its liquidity is insufficient to fund its
expansion or we anticipate it will face refinancing risk related to
its upcoming maturities.
"We could raise our rating on Ensono if it reliably generates FOCF
to debt of at least 5% on a sustained basis while maintaining
leverage of less than 6.5x. The company would also need to generate
sufficient cash after software and finance lease payments such that
it is able to fund most its future expansion with its internally
generated cash flow while maintaining or improving its current
margin profile."
ERO COPPER: S&P Upgrades ICR to 'B+', Outlook Stable
----------------------------------------------------
S&P Global Ratings raised its issuer credit rating on
Vancouver-based copper producer Ero Copper Corp. to 'B+' from 'B'.
At the same time, S&P raised its issue-level rating on the
company's unsecured notes due 2030 to 'B+' from 'B'. S&P's '3'
recovery rating on the notes is unchanged.
The stable outlook reflects S&P's expectation that Ero Copper will
generate improved credit measures, with leverage below 2.0x, and
positive FOCF in 2025.
S&P said, "The upgrade incorporates our view of Ero Copper nearing
commercial production at Tucuma and increasing production this
year. Ero Copper completed construction of its Tucuma copper
project and realized first production mid-2024. The company
completed development of the project largely in line with its
capital cost guidance of US$310 million. Since then, it has been
steadily ramping up operations and remains on track for commercial
production later this quarter. We believe much of the financial and
execution risks associated with the project have subsided and
expect Tucuma will be at full production before the end of 2025.
With Tucuma contributing and gradually increasing production at
Caraiba, we expect the company's consolidated copper production to
almost double to about 175 million pounds (mlbs) in 2025 and
increase further to about 200 mlbs in 2026. At Xavantina, we
estimate the company will continue to produce gold in the
mid-50,000 ounce area annually for the next several years.
"We expect Ero Copper will generate stronger cash flow and leverage
measures and transition to positive FOCF generation in 2025. We
estimate increased production and favorable copper and gold prices
will lead to higher cash flow and improved credit measures through
2026. We expect its leverage to fall below 2.0x in 2025, compared
with 3.5x in 2024, and improve further in 2026 to below 1.5x. In
addition, we expect the company to transition to positive FOCF
generation this year on higher earnings and a significant decrease
in annual capital expenditure (capex) following completion of
construction at Tucuma. We estimate the company will generate
cumulative FOCF in the mid-US$200 million area over the next two
years.
"Notwithstanding our forecast for low leverage, we incorporate
potential volatility in the company's cash flow and leverage
metrics in our financial risk profile assessment. We believe Ero
Copper's credit measures will remain highly sensitive to metal
price fluctuations, especially given current high prices.
Additionally, production ramp-up challenges or delays in reaching
commercial production at new projects are not uncommon across the
global mining industry and could lead to lower production and
higher consolidated cash costs than we assume. All else being
equal, we estimate the company's EBITDA would decline 25% and
leverage would increase to the mid-2.0x area in 2025 if copper
prices averaged 15% below our assumption.
"In our view, Ero Copper is a small-size copper producer with
narrow operating breadth. Ero Copper is primarily a copper producer
with an estimated 2025 annual production of about 175 mlbs, which
we view as moderate relative to those of other similarly rated
issuers. The Tucuma project will increase Ero Copper's scale and
reduce its reliance on Caraiba by adding a new producing asset to
the company's portfolio. Still, the company is expected to derive
85%-90% of its revenues from Caraiba and Tucuma (both copper
operations in Brazil) over the next several years. In our view, the
concentrated asset base in Brazil, which we consider a moderately
high-risk jurisdiction, exposes the company to unexpected regional
and asset-specific operating disruptions. Furthermore, Ero Copper's
high dependence on copper production makes its earnings and cash
flows vulnerable to adverse market conditions and prices that have
been volatile historically. The company's Xavantina gold mine
provides some commodity diversification from gold production (about
55,000 ounces of annual production) but is a small contributor to
overall revenue and earnings.
"We expect Ero Copper to maintain above-average profitability based
on our expectation that its consolidated copper cash costs will
improve about 10% from 2024 and remain firmly in the second
quartile of the global copper industry cost curve once the
relatively low-cost Tucuma is fully ramped up. Our estimated 2025
consolidated cash costs of about US$1.80 per pound (/lb) for copper
are substantially below prevailing prices and our price assumptions
for the next few years. We believe its low-cost position will
enable Ero Copper to be profitable even in a weaker copper price
environment and is a key factor supporting our assessment of the
company's business risk profile. In addition, it has long reserve
lives (10+ years) at both its copper mines that provide good
production visibility over the next several years.
"The stable outlook reflects our expectation that Ero Copper will
transition to positive FOCF this year on continued ramp-up at
Tucuma and its credit measures will improve, including S&P Global
Ratings-adjusted debt to EBITDA below 2x.
"We could downgrade Ero Copper within the next 12 months if we
expect the company's S&P Global Ratings-adjusted debt to EBITDA to
increase and remain above 3x. This could occur if production
volumes or EBITDA margins trend below our estimates, potentially
from production ramp-up challenges at Tucuma or lower sustained
commodity prices.
"We could upgrade Ero Copper within the next 12 months if the
company fully ramps up production at Tucuma while achieving cost
performance in line with our estimates. In this scenario, we would
also expect the company to maintain S&P Global Ratings-adjusted
debt to EBITDA below 2x and FOCF to debt greater than 10%,
supported by our commodity price assumptions and improved operating
performance."
ES PARTNERS: Case Summary & Six Unsecured Creditors
---------------------------------------------------
Debtor: ES Partners, Inc.
d/b/a Medline Express Services
20106 Northcote Dr
Boca Raton, FL 33434
Business Description: ES Partners, Inc. is a Florida-based
corporation that operates in the general
freight trucking industry under the trade
name Medline Express Services.
Chapter 11 Petition Date: April 17, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 25-14211
Judge: Hon. Mindy A. Mora
Debtor's Counsel: Brian K. McMahon, Esq.
BRIAN K. MCMAHON, PA
1401 Forum Way, Suite 730
West Palm Beach, FL 33401
Tel: 561-478-2500
E-mail: briankmcmahon@gmail.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
Steven M. Eaton signed the petition as CEO.
A full-text copy of the petition, which includes a list of the
Debtor's six unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/RBIE4FQ/ES_Partners_Inc__flsbke-25-14211__0001.0.pdf?mcid=tGE4TAMA
EVCON RENTALS: Case Summary & Three Unsecured Creditors
-------------------------------------------------------
Debtor: Evcon Rentals, Corporation
101 Airway Drive
Hot Springs, AR 71913
Business Description: Evcon Rentals is an equipment rental company
based in Hot Springs, Arkansas. It provides
a range of industrial, construction, and
landscaping equipment for rent to
contractors and individual consumers. The
Company operates multiple locations in the
region and offers delivery and pick-up
services.
Chapter 11 Petition Date: April 16, 2025
Court: United States Bankruptcy Court
Western District of Arkansas
Case No.: 25-70643
Judge: Hon. Richard D. Taylor
Debtor's Counsel: Marc Honey, Esq.
HONEY LAW FIRM, P.A.
PO Box 1254
1311 Central Avenue
Hot Springs, AR 71902
Tel: (501) 321-1007
Fax: (501) 321-1255
E-mail: mhoney@honeylawfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Evans as president.
A full-text copy of the petition, which includes a list of the
Debtor's three unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/LWPTJZA/Evcon_Rentals_Corporation__arwbke-25-70643__0001.0.pdf?mcid=tGE4TAMA
EXELA TECHNOLOGIES: Gets Court Okay for $5MM Funding Amid DIP Talks
-------------------------------------------------------------------
Rick Archer of Law360 reports that a Texas bankruptcy judge has
approved a $5 million interim financing deal for Exela
Technologies, providing short-term relief as the payment processing
company addresses objections to the final order on its proposed
$185 million Chapter 11 financing package.
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. at
Andrews Kurth LLP.
F21 OPCO: Can Retain Paul Weiss as Special Counsel in Ch. 11 Case
-----------------------------------------------------------------
Vince Sullivan of Law360 Bankruptcy Authority reports that on
Wednesday, April 16, 2025, clothing retailer Forever 21 reached an
agreement with the U.S. Trustee permitting the retention of Paul
Weiss Rifkind Wharton & Garrison LLP as special counsel for asset
sales, after both parties agreed to limit the firm's role.
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.
FAITH ELECTRIC: Gets Interim OK to Use Cash Collateral Until May 1
------------------------------------------------------------------
Faith Electric, Inc. got the green light from the U.S. Bankruptcy
Court for the Western District of Oklahoma to use cash collateral
until May 1.
The order penned by Judge Sarah Hall approved the interim use of
cash collateral to pay the expenses set forth in the company's
budget, with a 10% variance allowed.
As protection, Wells Fargo Commercial Distribution Finance was
granted a first priority lien on and security interests in all
assets of the company, subject to existing superior liens on the
assets held by other creditors.
In case of any diminution in the value of its collateral, Wells
Fargo will be granted a superpriority claim.
A final hearing is set for May 1.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/VI2HZ from PacerMonitor.com.
About Faith Electric Inc.
Faith Electric, Inc. is an Oklahoma City-based company, which
specializes in electrical contracting services. It offers design,
installation, and repair for residential, commercial, and
industrial clients. In 2019, the company rebranded as Generator
Supercenter of Oklahoma, focusing primarily on Generac generator
sales, installation, and maintenance.
Faith Electric filed Chapter 11 petition (Bankr. W.D. Okla. Case
No. 25-10921) on March 31, 2025, listing up to $10 million in both
assets and liabilities. Austin Partida, chief executive officer of
Faith Electric, signed the petition.
Judge Sarah A. Hall oversees the case.
Amanda R. Blackwood, Esq., at Blackwood Law Firm, PLLC, is the
Debtor's bankruptcy counsel.
Wells Fargo Commercial Distribution Finance, as secured creditor,
is represented by:
Ross A. Plourde, Esq.
McAfee & Taft, A Professional Corporation
8th Floor, Two Leadership Square
211 North Robinson
Oklahoma City, OK 73102-7103
Telephone: (405) 235-9621
Facsimile: (405) 235-0439
ross.plourde@mcafeetaft.com
FASHIONABLE INC: Gets Interim OK to Use Cash Collateral
-------------------------------------------------------
Fashionable, 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 Randal Mashburn authorized the company to
use cash collateral until April 30 to pay its operating expenses in
accordance with its budget.
Creditors that may have an interest in the company's cash will be
provided with protection in the form of a replacement lien on the
company's property, to the same extent and with the same priority
as their pre-bankruptcy liens.
The next hearing is scheduled for April 29.
About Fashionable Inc.
Fashionable, Inc., doing business as ABLE, is a Nashville-based
women's clothing and accessories brand offering a thoughtfully
curated range of apparel, leather goods, jewelry, and footwear.
Fashionable, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Ten. Case No. 25-01501) on April 8,
2025, listing between $1 million and $10 million in both assets and
liabilities. Misti Blasko, chief executive officer of Fashionable,
Inc., signed the petition.
Judge Randal S. Mashburn oversees the case.
The Debtor is represented by:
R. Alex Payne, Esq.
Dunham Hildebrand Payne Waldron, PLLC
Tel: 629-777-6529
Email: alex@dhnashville.com
FEEDEX COMPANIES: Seeks to Sell Hutchinson Property at Auction
--------------------------------------------------------------
Feedex Companies LLC seeks permission from the U.S. Bankruptcy
Court for the District of Kansas to sell Assets, free and clear of
liens, interests, claims, and encumbrances.
The Debtor owns a real estate asset, a commercial building, as well
as various items of business related equipment which includes
vehicles.
The Larry Doskocil Trust has a mortgage on the Debtor's commercial
real estate at 1616 Wasp Rd., Hutchinson KS 67501 and a security
agreement on all inventory, accounts, deposit accounts, accounts
receivable, equipment, machinery, furniture, fixtures, contracts
rights, documents, chattel paper, instruments, and general
intangibles
Other lienholders of the Property includes Ivan Martinez (DBA Ivan
Trucking), and The Small Business Administration.
The Debtor engages auctioneer, McCurdy Real Estate & Auction LLC,
to handle the sale of the building and the building's adjacent
machinery, tools, and equipment along with the sale of the estate
vehicles.
Debtor proposes to effectuate the sale of the Properties to the
highest bidder, or bidders, by a form of asset purchase agreement.
The marketing period will begin no sooner than 10 days after the
entry of the Bid Procedures
Order. Bid Submission Deadline is 2:00 p.m. on Wednesday (the last
day of the marketing
period).
A Potential Bidder who desires to make a Bid must register through
the McCurdy.com website for this auction which will also require
that the Potential Bidder agrees to the terms and conditions of the
auction.
A Bid will be submitted to McCurdy at sealedbid@mccurdy.com. All
Bids received by McCurdy prior to the Bid submission deadline will
be held by McCurdy and will not be disclosed to the Debtor until
after the submission deadline.
Upon making a determination of the highest or otherwise best offer,
the Debtor will notify the successful high Bidder.
The Bid Procedures provide an appropriate framework for obtaining
offers for the purchase of the Properties and will enable the
Debtor to review, analyze and compare all Bids received to
determine which Bid (or Bids) is in the best interests of Debtor's
estate and the creditors.
The Debtor requests that the assets be transferred to the
Successful Bidder(s) free and clear of all liens, claim, interests
and encumbrances, with such liens, claims, interests and
encumbrances to attach to the proceeds of the sale of the
property.
About Feedex Companies LLC
Feedex Companies, LLC is a livestock feed producer in Hutchinson,
Kansas, offering a variety of specially formulated feed products
including cattle feed, calf feed, and chicken feed. It also offers
mill construction, nutrition consultation, and horizontal steam
conditioner services to meet the specific needs of its customers'
operation.
Feedex Companies filed Chapter 11 petition (Bankr. D. Kansas Case
No. 24-21039) on August 14, 2024, with $1 million to $10 million in
both assets and liabilities.
George J. Thomas, Esq., at Phillips & Thomas, LLC is the Debtor's
legal counsel.
FELTRIM TUSCANY: Ruediger Mueller Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Ruediger Mueller of TCMI,
Inc. as Subchapter V trustee for Feltrim Tuscany Preserve, LLC.
Mr. Mueller will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Mueller declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Ruediger Mueller
TCMI, Inc.
1112 Watson Court
Reunion, FL 34747
Telephone: (678) 863-0473
Facsimile: (407) 540-9306
Email: truste@tcmius.com
About Feltrim Tuscany Preserve
Feltrim Tuscany Preserve LLC is a limited liability company in
Haines City, Fla.
Feltrim Tuscany Preserve sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
25-01693) on March 20, 2025. In its petition, the Debtor reported
between $1 million and $10 million in both assets and liabilities.
Judge Catherine Peek Mcewen handles the case.
The Debtor is represented by Amy Denton Mayer, Esq., at Stichter,
Riedel, Blain & Postler P.A.
FIRST ACCEPTANCE: A.M. Best Affirms C++(Marginal) FS Rating
-----------------------------------------------------------
AM Best has revised the outlooks to stable from negative for the
Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the
Financial Strength Rating (FSR) of C++ (Marginal) and the Long-Term
ICRs of "b+" (Marginal) of the subsidiaries of First Acceptance
Corporation (Delaware) [OTCQX: FACO], collectively referred to as
First Acceptance Group (First Acceptance). The outlook for the FSR
is stable. Concurrently, AM Best has revised the outlook to stable
from negative and affirmed the Long-Term ICR of "ccc-" (Weak) of
First Acceptance Corporation. (See below for a detailed list of
subsidiaries.)
The Credit Ratings (ratings) reflect First Acceptance's balance
sheet strength, which AM Best assesses as weak, as well as its
marginal operating performance, limited business profile and
marginal enterprise risk management (ERM).
The revision of the Long-Term ICRs outlooks to stable from negative
reflects strengthening of the balance sheet metrics and overall
risk-adjusted capitalization as measured by Best's Capital Adequacy
Ratio (BCAR) that improved to strong from weak as of the prior
year. Surplus growth in 2024, benefited from robust net income
enhanced by an additional capital contribution related to proceeds
received from the sale of the affiliated retail agency operations
in 2023. The material increase in First Acceptance's reported net
income, which benefited from considerable growth in both net
investment and other fee income, was partially offset by continued
unprofitable underwriting results owing to increased severity
trends in the bodily injury and physical damage lines of business
leading to unfavorable reserve trends. These trends have been
partially mitigated by the loss of the ratio-based contingent
commission adjustments in the group's second-largest independent
agent in 2024. Risk-adjusted capitalization further benefited from
a recent quota share treaty on the group's second-largest
independent agent, effective July 1, 2024, implemented to reduce
underwriting leverage and manage risk. Despite an improved balance
sheet, the organization's position remains highly sensitive to
premium growth and reserve adequacy given its elevated leverage
position. Management of growth and corresponding risk-adjusted
capitalization will continue to be monitored for sustained
improvement in the near term.
First Acceptance's marginal operating performance assessment is
driven by persistent underwriting losses, partially offset by net
investment income, other income and realized gains in recent years.
The company's business profile is assessed as limited as operations
are focused on non-standard automobile business, which has a
history of being volatile and competitive. Geographic risk
concentration reflects nearly 64% of premium derived from Georgia,
Florida and South Carolina. AM Best assesses First Acceptance's ERM
as marginal given the framework that continues to evolve. While
enhancements have taken place to integrate a more formalized
structure, risk management capabilities are not fully aligned with
the organization's profile.
The FSR of C++ (Marginal) and the Long-Term ICRs of "b+" (Marginal)
have been affirmed, with the Long-Term ICRs outlooks revised to
stable from negative and the FSR outlook maintained at stable, for
the following pooled subsidiaries of First Acceptance Corporation:
First Acceptance Insurance Company, Inc.
First Acceptance Insurance Company of Georgia, Inc.
First Acceptance Insurance Company of Tennessee, Inc.
FOUR HATS: Seeks Chapter 11 Bankruptcy in Georgia
-------------------------------------------------
On April 15, 2025, Four Hats Inc. filed Chapter 11 protection in
the U.S. Bankruptcy Court for the Northern District of Georgia.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 50 and 99 creditors. The petition
states funds will be available to unsecured creditors.
About Four Hats Inc.
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.
Four Hats Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. ) on April 15, 2025. In its petition,
the Debtor reports estimated assets and liabilities between $1
million and $10 million each.
The Debtor is represented by Leslie Pineyro, Esq. at JONES & WALDEN
LLC.
FRANCIS TRUST: Section 341(a) Meeting of Creditors on May 13
------------------------------------------------------------
On April 15, 2025, Francis Trust LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the District of Maine. 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 341(a) to be held on May 13, 2025 at
11:00 AM by Telephone.
About Francis Trust LLC
Francis Trust LLC operates The Moorings of New Harbor, a lodging
complex situated in New Harbor, Maine. This property offers a
variety of accommodations, including private units in historic
homes with harbor and ocean views. Amenities at The Moorings
include an indoor heated pool, hot tub, tennis courts, and free
Wi-Fi. Some units are pet-friendly and feature full kitchens,
fireplaces, and expansive decks.
Francis Trust LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Me. Case No. 25-10064) on April 15,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Peter G. Cary handles the case.
The Debtor is represented by Tanya Sambatakos, Esq. at MOLLEUR LAW
FIRM.
GLOBAL CLEAN ENERGY: Seeks Chapter 11 Bankruptcy in Texas
---------------------------------------------------------
On April 16, 2025, Global Clean Energy Holdings Inc. filed
Chapter 11 protection in the U.S. Bankruptcy Court for
the Southern District of Texas. According to court filing, the
Debtor reports $1,584,749,000 in debt owed to 1,000 and 5,000
creditors. The petition states funds will not be available to
unsecured creditors.
About Global Clean Energy Holdings Inc.
Global Clean Energy Holdings Inc. is a renewable energy company
that produces ultra-low carbon fuels from proprietary strains of
Camelina sativa, a nonfood crop. The Company manages the full value
chain -- from cultivation to fuel production -- at facilities
including its plant in Bakersfield, California. It operates
internationally and collaborates with growers to support
large-scale Camelina cultivation.
Global Clean Energy Holdings Inc. and affiliates sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex.
Lead Case 25-90113) on April 16, 2025. In its petition, the Debtor
reports total assets as of Sept. 30, 2024 amounting to
$1,598,001,000 and total debts as of Sept. 30, 2024 totalling
$1,584,749,000.
Honorable Bankruptcy Judge Alfredo R. Perez handles the case.
The Debtors tapped Joshua A. Sussberg, P.C., Brian Schartz, P.C.,
Ross J. Fiedler, Esq., and Peter A. Candel, Esq. at KIRKLAND &
ELLIS LLP and KIRKLAND & ELLIS INTERNATIONAL LLP. The Debtors
tapped Jason L. Boland, Esq., Robert B. Bruner, Esq., Julie
Harrison, Esq., and Maria Mokrzycka, Esq. at NORTON ROSE FULBRIGHT
US LLP. LAZARD FRERES & CO. LLC is the Debtors' Investment Banker.
ALVAREZ & MARSAL NORTH AMERICA, LLC is the Debtors' Financial
Advisor.EPIQ CORPORATE RESTRUCTURING, LLC is the Debtors' Noticing
& Claims Agent. HILCO VALUATION SERVICES, LLC is the Debtors'
Appraisal Advisor.
GLOBAL CLEAN: Files Chapter 11 With $100 Million DIP Loan
---------------------------------------------------------
Global Clean Energy Holdings, Inc., a vertically integrated
renewable fuels company, announced on April 16, 2025, that it
entered into a Restructuring Support Agreement with agreement and
support from Vitol Americas Corp., as RCF lender, an ad hoc group
of term loan lenders which holds approximately 96% of the term
loans, and CTCI Americas, Inc. To facilitate the transactions
contemplated under the RSA, the Company commenced Chapter 11 cases
in the United States Bankruptcy Court for the Southern District of
Texas.
Noah Verleun, President and CEO of GCE, stated, "As we enter this
next phase of our restructuring process, we are appreciative of the
continued support from our existing stakeholders. Their confidence
in our upstream and downstream businesses, as demonstrated by this
ongoing collaboration, reinforces the opportunity GCE has in the
renewable fuels market, with our 'farm-to-fuel' business model. I
want to thank our employees for continuing to be fully engaged as
we go through this process and prioritizing safety above all else.
We feel confident this decision provides us the best pathway toward
future success."
The Company has filed customary first day motions and plans to
operate its businesses in the ordinary course, including requesting
approval to continue paying our employees and funding its benefit
programs in the normal course, as it pursues the holistic
restructuring transactions set forth in the RSA. To fund this
process and continue operating in the ordinary course, the
Company's term loan lenders and CTCI have combined to provide an
additional $100 million in new money debtor--in--possession
financing and services, subject to certain terms and the
satisfaction of certain conditions precedent. The Company has also
filed a Chapter 11 plan and anticipates confirming their Chapter 11
plan by August 2025.
Kirkland & Ellis is serving as restructuring counsel, Lazard is
serving as the investment banker, and Alvarez & Marsal is serving
as the financial advisor to the Company.
About Global Clean Energy
Global Clean Energy Holdings, Inc. (OTCQB:GCEH) is a vertically
integrated renewable fuels company specializing in the development
and cultivation of camelina, a nonfood, regenerative, intermediate
oilseed crop, which is used for the production of advanced biofuels
and biomaterials. With a vision that begins in the laboratory,
moves through the farm gate, and finishes with renewable fuels,
GCE's farm-to-fuels value chain integration provides unrivaled
access to reliable, ultra-low carbon feedstocks and is unparalleled
in the sustainable fuels industry. To learn more, visit
www.GCEholdings.com.
GRAND AUGUSTA: Seeks Chapter 11 Bankruptcy in Nevada
----------------------------------------------------
On April 15, 2025, Grand Augusta LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the District of Nevada. According
to court filing, the Debtor reports $2,033,905 in debt owed to
1 and 49 creditors. The petition states funds will be available to
unsecured creditors.
About Grand Augusta LLC
Grand Augusta LLC holds full ownership rights to the property
located at 417 Grand Augusta Lane, Las Vegas, NV 89144, which has
an estimated value of $1.5 million.
Grand Augusta LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 25-12125) on April 15,
2025. In its petition, the Debtor reports total assets of
$1,500,000 and total liabilities of $2,033,905.
The Debtor is represented by Michael J. Harker, Esq. at LAW OFFICES
OF MICHAEL J. HARKER.
GUNNISON VALLEY: Seeks to Extend Plan Exclusivity to June 26
------------------------------------------------------------
Gunnison Valley Properties, LLC, asked the U.S. Bankruptcy Court
for the District of Colorado to extend its exclusivity periods to
file a plan of reorganization and obtain acceptance thereof to June
26 and September 26, 2025, respectively.
The Debtor seeks a 3-month extension of the exclusivity period and
a corresponding extension of the solicitation deadline. The current
exclusive period expires March 26, 2025, and the solicitation
period expires June 26, 2025.
Applying the pertinent factors here demonstrates that a 3-month
extension of the exclusive periods is appropriate:
* the size and complexity of the chapter 11 matters. Debtor's
assets and debts are significant—Debtor asserts its assets have
an estimated value of nearly $75MM. Debtor has approximately $28MM
in undisputed secured debts and $10MM to $15MM in unsecured debts.
Moreover, as described and in other pleadings, the issues to be
resolved for moving the Gunnison Rising development forward or
selling it are complex.
* the necessity of sufficient time to allow the debtor to
negotiate a plan of reorganization. Debtor intends to use the
additional time before filing a plan to proceed and summarized as
follows: (i) continue seeking DIP loans and metro district bonds,
(ii) seek and obtain Court approval to sell the 5-Acre Parcel,
(iii) finalize an arrangement with the City for the City to assume
certain time-sensitive, off-site infrastructure, and (iv) continue
to evaluate potential sales of other assets, including lots in the
Government Campus and Tomichi's assets.
* the existence of good faith progress toward reorganization.
As described, Debtor has made good faith efforts towards
reorganizing during the case.
* the fact that the debtor is paying its bills as they become
due. Because Debtor does not have employees, traditional business
operations, or leases of real estate for which it is the tenant,
Debtor's primary expenses are insurance, professional fees, and
payment of its development manager. Debtor believes it is
substantially current on its post-bankruptcy obligations. Debtor
notes that Tomichi is a separate entity and remains current on its
obligations and debt service.
* whether the debtor has demonstrated reasonable prospects for
filing a viable plan. Debtor's best prospect for filing a plan is
through the efforts described, including moving forward with the
Gunnison Rising development and evaluating a sale of Tomichi and
the parcels identified. Debtor has made material progress on those
efforts and anticipates getting to a conclusion on those efforts
prior to June 26, 2025.
* whether the debtor has made progress in negotiations with
creditors. Debtor has communicated with the two largest non insider
creditors (Biomedical Ventures LLC and DDC) during the case.
Negotiations are ongoing.
* whether an unresolved contingency exists. The material
unresolved contingency is finding funding for the infrastructure.
Extending the exclusive periods for Debtor to file a Plan and
obtain Plan acceptance will permit Debtor to concentrate its time
and effort on finding funding and selling certain assets. Debtor
asserts the extensions should be granted in the interests of
efficiency, economy and promoting Debtor's successful
reorganization, all for the best interests of creditors and the
estate.
Gunnison Valley Properties, LLC is represented by:
Andrew D. Johnson, Esq.
Joli A. Lofstedt, Esq.
Gabrielle G. Palmer, Esq.
ONSAGER | FLETCHER | JOHNSON | PALMER LLC
600 17th Street, Suite 425 North
Denver, CO 80202
Tel: (720) 457-7059
Email: ajohnson@OFJlaw.com
About Gunnison Valley Properties
Gunnison Valley Properties LLC in Louisville, Colo., sought relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No.
24-15052) on Aug. 28, 2024, listing $50 million to $100 million in
assets and $10 million to $50 million in liabilities. Byron
Chrisman, manager, signed the petition.
Judge Joseph G. Rosania Jr. oversees the case.
Onsager | Fletcher | Johnson | Palmer LLC serves as the Debtor's
legal counsel.
HARLING INC: Robert Handler Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 11 appointed Robert Handler of
Commercial Recovery Associates, LLC as Subchapter V trustee for
Harling Inc.
Mr. Handler will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Handler declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Robert P. Handler
Commercial Recovery Associates, LLC
205 West Wacker Drive, Suite 918
Chicago, IL 60606
Tel: (312) 845-5001 x221
Email: rhandler@com-rec.com
About Harling Inc.
Harling Inc., a company in Broadview, Ill., specializes in masonry
facade repair, restoration, and building waterproofing services for
commercial, industrial, and institutional buildings. It offers
services such as tuckpointing, concrete restoration, brick
replacement, lintel repair, and parapet repair. With a focus on
high-quality craftsmanship and customer satisfaction, Harling
successfully completes more than 90 projects each year,
prioritizing safety and excellence in all their work.
Harling sought relief under Subchapter V of Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-04324) on March 1,
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 Jacqueline P. Cox handles the case.
The Debtor is represented by:
Joel Schechter, Esq.
Law Offices of Joel A. Schechter
53 West Jackson Blvd., Suite 1522
Chicago, IL 60604
Tel: (312) 332-0267
joelschechter1953@gmail.com
HERTZ GLOBAL: Aims to Increase Debt to Strengthen Balance Sheet
---------------------------------------------------------------
Reshmi Basu, Jill R. Shah, and David Welch of Bloomberg News report
that Hertz Global Holdings Inc. is evaluating debt-raising options
to reinforce its balance sheet as it prepares for a possible payout
to bondholders and seeks to manage upcoming financial obligations,
according to people familiar with the situation.
The company has engaged boutique investment bank Ducera Partners to
explore potential financing solutions, including funding a
litigation settlement with bondholders and extending the maturity
of its revolving credit facility set to expire next year, the
sources said, speaking on condition of anonymity due to the private
nature of the talks, according to Bloomberg News.
About Hertz Corp.
Hertz Corp. and its subsidiaries -- http://www.hertz.com/--
operate a worldwide vehicle rental business under the Hertz,
Dollar, and Thrifty brands, with car rental locations in North
America, Europe, Latin America, Africa, Asia, Australia, the
Caribbean, the Middle East, and New Zealand. They also operate a
vehicle leasing and fleet management solutions business.
On May 22, 2020, The Hertz Corporation and certain of its U.S. and
Canadian subsidiaries and affiliates filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 20-11218).
Judge Mary F. Walrath oversees the cases.
The Debtors have tapped White & Case LLP as their bankruptcy
counsel, Richards, Layton & Finger, P.A., as local counsel, Moelis
& Co. as investment banker, and FTI Consulting as financial
advisor. The Debtors also retained the services of Boston
Consulting Group to assist the Debtors in the development of their
business plan. Prime Clerk LLC is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a Committee to
represent unsecured creditors in Debtors' Chapter 11 cases. The
Committee has tapped Kramer Levin Naftalis & Frankel LLP as its
bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as
Delaware counsel, UBS Securities LLC as investment banker, and
Berkeley Research Group, LLC, as financial advisor. Ernst & Young
LLP provides audit and tax services to the Committee.
* * *
Hertz Global and its subsidiaries emerged from Chapter 11
bankruptcy at the end of June 2021. Hertz won approval of a Plan of
Reorganization that unimpaired all classes of creditors (who are
legally deemed to have accepted it) and was approved by more than
97% of voting shareholders. The Plan provided for the existing
shareholders to receive more than $1 billion of value.
Recovery by shareholders of close to $8 a share was made possible
after a fierce competition among bidders for control in the
company. Initial offers from potential bidders for Hertz in its
bankruptcy offered nothing for equity. Hertz in May 2021 selected
investment firms Knighthead Capital Management LLC and Certares
Management LLC, joined by other investors including Apollo Global
Management Inc. and a group of existing shareholders, as the
winning bidders for control of the bankrupt company. A rival group
that included Centerbridge Partners LP, Warburg Pincus LLC and
Dundon Capital Partners LLC was outbid at auction.
Hertz's Plan eliminated over $5 billion of debt, including all of
Hertz Europe's corporate debt, and will provide more than $2.2
billion of global liquidity to the reorganized Company. Hertz also
emerged with (i) a new $2.8 billion exit credit facility consisting
of at least $1.3 billion of term loans and a revolving loan
facility, and (ii) an $7 billion of asset-backed vehicle financing
facility, each on favorable terms.
HOOK PARK: Fitch Assigns 'BB+(EXP)sf' Rating on Class E Notes
-------------------------------------------------------------
Fitch Ratings has assigned expected ratings and Rating Outlooks to
Hook Park CLO, Ltd.
Entity/Debt Rating
----------- ------
Hook Park CLO, Ltd.
A-1 LT AAA(EXP)sf Expected Rating
A-2 LT AAA(EXP)sf Expected Rating
B-1 LT AA(EXP)sf Expected Rating
B-2 LT AA(EXP)sf Expected Rating
C LT A+(EXP)sf Expected Rating
D-1 LT BBB-(EXP)sf Expected Rating
D-2 LT BBB-(EXP)sf Expected Rating
E LT BB+(EXP)sf Expected Rating
F LT NR(EXP)sf Expected Rating
Subordinated Notes LT NR(EXP)sf Expected Rating
Transaction Summary
Hook Park CLO, Ltd. (the issuer) is an arbitrage cash flow
collateralized loan obligation (CLO) that will be managed by
Blackstone CLO Management LLC. Net proceeds from the issuance of
the secured and subordinated notes will provide financing on a
portfolio of approximately $500 million of primarily first lien
senior secured leveraged loans.
KEY RATING DRIVERS
Asset Credit Quality (Negative): The average credit quality of the
indicative portfolio is 'B', which is in line with that of recent
CLOs. Issuers rated in the 'B' rating category denote a highly
speculative credit quality; however, the notes benefit from
appropriate credit enhancement and standard CLO structural
features.
Asset Security (Positive): The indicative portfolio consists of
98.25% first lien senior secured loans and has a weighted average
recovery assumption of 73.04%. Fitch stressed the indicative
portfolio by assuming a higher portfolio concentration of assets
with lower recovery prospects and further reduced recovery
assumptions for higher rating stresses.
Portfolio Composition (Positive): The largest three industries may
comprise up to 37% of the portfolio balance in aggregate while the
top five obligors can represent up to 12.5% of the portfolio
balance in aggregate. The level of diversity required by industry,
obligor and geographic concentrations is in line with that of other
recent CLOs.
Portfolio Management (Neutral): The transaction has a 5.1-year
reinvestment period and reinvestment criteria similar to other
CLOs. Fitch's analysis was based on a stressed portfolio created by
adjusting the indicative portfolio to reflect permissible
concentration limits and collateral quality test levels.
Cash Flow Analysis (Positive): Fitch used a customized proprietary
cash flow model to replicate the principal and interest waterfalls
and assess the effectiveness of various structural features of the
transaction. In Fitch's stress scenarios, the rated notes can
withstand default and recovery assumptions consistent with their
assigned ratings.
The WAL used for the transaction stress portfolio is 12 months less
than the WAL covenant to account for structural and reinvestment
conditions after the reinvestment period. In Fitch's opinion, these
conditions would reduce the effective risk horizon of the portfolio
during stress periods.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Variability in key model assumptions, such as decreases in recovery
rates and increases in default rates, could result in a downgrade.
Fitch evaluated the notes' sensitivity to potential changes in such
a metric. The results under these sensitivity scenarios are as
severe as between 'A-sf' and 'AAAsf' for class A-1, between
'BBB+sf' and 'AA+sf' for class A-2, between 'BB+sf' and 'A+sf' for
class B, between 'B+sf' and 'BBB+sf' for class C, between less than
'B-sf' and 'BB+sf' for class D-1, and between less than 'B-sf' and
'BB+sf' for class D-2 and between less than 'B-sf' and 'BB-sf' for
class E.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Upgrade scenarios are not applicable to the class A-1 and class A-2
notes as these notes are in the highest rating category of
'AAAsf'.
Variability in key model assumptions, such as increases in recovery
rates and decreases in default rates, could result in an upgrade.
Fitch evaluated the notes' sensitivity to potential changes in such
metrics; the minimum rating results under these sensitivity
scenarios are 'AAAsf' for class B, 'AA+sf' for class C, 'A+sf' for
class D-1, and 'Asf' for class D-2 and 'BBB+sf' for class E.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognized statistical rating organizations and/or European
Securities and Markets Authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information.
Overall, Fitch's assessment of the asset pool information relied
upon for its rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.
ESG Considerations
Fitch does not provide ESG relevance scores for Hook Park CLO,
Ltd.
In cases where Fitch does not provide ESG relevance scores in
connection with the credit rating of a transaction, programme,
instrument or issuer, Fitch will disclose any ESG factor that is a
key rating driver in the key rating drivers section of the relevant
rating action commentary.
HRM DETROIT: Case Summary & Two Unsecured Creditors
---------------------------------------------------
Debtor: HRM Detroit Holding, LLC
2102 Orleans Street
Detroit, MI 48207
Business Description: HRM Detroit Holding is engaged in the
business of leasing real estate properties
in the Detroit area.
Chapter 11 Petition Date: April 16, 2025
Court: United States Bankruptcy Court
Eastern District of Michigan
Case No.: 25-43887
Judge: Hon. Mark A. Randon
Debtor's Counsel: Ryan Heilman, Esq.
HEILMAN LAW PLLC
40900 Woodward Ave., Suite 100
Bloomfield Hills, MI 48304-5122
Tel: 248-835-4745
Email: 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, also known as H. Roger
Mali, in his capacity as manager.
A copy of the Debtor's list of two unsecured creditors is available
for free on PacerMonitor at:
https://www.pacermonitor.com/view/HSZABCQ/HRM_Detroit_Holding_LLC__miebke-25-43887__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/HVJEGRI/HRM_Detroit_Holding_LLC__miebke-25-43887__0001.0.pdf?mcid=tGE4TAMA
HUDSON'S BAY: To Auction Art and Artifacts in CCAA Process
----------------------------------------------------------
Hudson's Bay Company ULC, as part of its ongoing restructuring
under the Companies' Creditors Arrangement Act (CCAA), announced on
April 16, 2025, that subject to court approval, its intention to
conduct a dedicated auction for the sale of its historically
significant art and artifacts.
Recognizing the extraordinary cultural and historical value of
these items--including the Company's Royal Charter and other
artifacts deeply intertwined with Canadian history--HBC and its
financial advisor, Reflect Advisors, LLC, with the consent of the
court-approved monitor, have determined to hold the Art Auction
apart from the broader Sale and Investment Solicitation Process
(SISP). This approach ensures that the care, consideration, and
expertise required for these pieces can be fully prioritized
through a separate process facilitated by a fine art auction house
with the assistance of HBC and Reflect Advisors, LLC.
Further details regarding the procedures relating to the Art
Auction will be provided to the parties interested in participating
in the Art Auction in due course.
About Hudson's Bay Company ULC
Hudson's Bay Company -- https://www.hbc.com/ -- is a Canadian
holding company of department stores, and the oldest corporation in
North America.
IR4C INC: Court Extends Cash Collateral Access to May 15
--------------------------------------------------------
IR4C, Inc. received sixth interim approval from the U.S. Bankruptcy
Court for the Middle District of Florida to use cash collateral.
The sixth interim order approved the use of cash collateral for the
period from March 28 to May 15, to pay business expenses set forth
in the monthly budget.
All secured creditors will have perfected post-petition liens on
cash collateral to the same extent and with the same validity and
priority as their respective pre-bankruptcy liens.
Meanwhile, Lake Michigan Credit Union will continue to receive a
monthly payment of $10,000 as protection.
The interim order will remain in effect until IR4C's Chapter 11
case is converted to Chapter 7, a trustee is appointed, a
bankruptcy plan is confirmed, or the order is terminated.
The next hearing is set for May 15.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/mtOfZ from PacerMonitor.com.
About IR4C Inc.
IR4C, Inc., a company in Lakeland, Fla., is the owner and operator
of a mobile application fitness program using augmented reality to
create virtual "races." It conducts business under the name
Yes.Fit
and Make Yes Happen.
IR4C filed Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case
No. 24-05458) on Sept. 13, 2024. In its petition, IR4C listed total
assets of $4,280,839 and total liabilities of $7,922,422. IR4C
President Kevin D. Transue signed the petition.
Judge Roberta A. Colton oversees the case.
Samantha L. Dammer, Esq., at Bleakley Bavol Denman & Grace is the
Debtor's legal counsel.
Lake Michigan Credit Union, as secured creditor, is represented
by:
Andrew W. Lennox, Esq.
Casey Reeder Lennox, Esq.
Lennox Law, P.A.
P.O. Box 20505
Tampa, FL 33622
Tel: 813-831-3800
Fax: 813-749-9456
alennox@lennoxlaw.com
clennox@lennoxlaw.com
IRECERTIFY: Seeks to Extend Plan Exclusivity to August 4
--------------------------------------------------------
IRecertify 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 August 4, 2025.
Since the commencement of this case, the Debtor has worked
diligently to effect a smooth transition into chapter 11 and move
this case forward without delay, albeit with difficulties as noted
by The Court with prior Debtor's Counsel.
Based on a weighing of the relevant factors, there is more than
sufficient cause to approve the extension of the Exclusive Periods
requested by the Debtor:
* The Debtor, its creditors and its insurers require
additional time to gather and share the information needed to
negotiate a plan of reorganization. The Debtor is in the process of
seeking a court order assuming the lease for the corporate
headquarters, which is essential for the Debtor's business to
continue.
* Prior missteps by prior counsel had the effect of
eliminating nearly two months of time from the exclusivity period,
due to current Counsel needing to correct those steps prior to
filing the first proposed chapter 11 plan.
* The Debtor has made good faith progress toward
reorganization by, among other things, making progress towards
establishing a claims bar date, and engaging in ongoing out of
court negotiations with creditors on a variety of issues.
* Since filing this chapter 11 case, the Debtor believes that
it has continued to pay substantially all of its undisputed,
postpetition expenses and invoices in the ordinary course of
business or as otherwise provided by order of the Court.
* The requested extension of the Exclusive Periods is the
first such request made in this chapter 11 case and comes
approximately six months after the Petition Date. This amount of
time is not long given the complexity of the issues involved and
the fact that the number of abuse claims against the Debtor remains
unknown.
* The Debtor is not seeking an extension of the Exclusive
Periods to pressure or prejudice any of its stakeholders. Rather,
the Debtor is seeking an extension of the Exclusive Periods to
preserve and build upon the progress made to date by securing
adequate time to develop a plan of reorganization. The Debtors'
efforts towards reaching a global settlement with its insurers and
claimants will benefit, not prejudice, its creditors.
Attorneys for the Debtor:
John W Christiansen, Esq.
ALTA LEGAL
470 N. University Ave #202
Provo, UT 84601
385-224-3765
Email: john@alta-legal.com
Attorneys for the Debtor:
Steven M. Rogers, Esq.
Nicholas R. Russell, Esq.
ROGERS & RUSSELL
170 S. Main Street
Pleasant Grove, Utah 84062
(801) 899-6064 phone
(801) 210-5388 fax
Email: paralegal@roruss.com
About IRecertify
IRecertify, doing business as Warehouse B, is a merchant wholesaler
of professional and commercial equipment and supplies.
IRecertify sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Utah Case No. 24-25156) on Oct. 7, 2024. In the
petition filed by Brett Kitson, as managing member, the Debtor
estimated assets between $100,000 and $500,000 and estimated
liabilities between $1 million and $10 million.
The Debtor is represented by Russell S. Walker, Esq. at PEARSON
BUTLER PLLC.
IVANTI SOFTWARE: PSOIX Marks $628K Loan at 26% Off
--------------------------------------------------
The Palmer Square Opportunistic Income Fund has marked its $628,964
loan extended to Ivanti Software, Inc. to market at $467,792 or 74%
of the outstanding amount, according to PSOIX's Form N-CSR for the
fiscal year ended July 31, 2024, filed with the U.S. Securities and
Exchange Commission.
PSOIX is a participant in a Loan to Ivanti Software, Inc. The loan
accrues interest at a rate of 8.817% (3-Month Term SOFR+425 basis
points) per annum. The loan matures on December 1, 2027.
PSOIX was organized as a Delaware statutory trust on May 1, 2014,
and is registered as a non-diversified, closed-end management
investment company under the Investment Company Act of 1940, as
amended. Shares of the Fund are being offered on a continuous
basis.
PSOIX is an investment company and accordingly follows the
investment company accounting and reporting guidance of the
Financial Accounting Standards Board (FASB) Accounting Standard
Codification Topic 946 "Financial Services—Investment
Companies".
PSOIX values equity securities at the last reported sale price on
the principal exchange or in the principal over the counter market
in which such securities are traded, as of the close of regular
trading on the NYSE on the day the securities are being valued or,
if the last-quoted sales price is not readily available, the
securities will be valued at the last bid or the mean between the
last available bid and ask price.
PSOIX is led by Jeffrey D. Fox as president and principal executive
officer and Stacy Brice Chief Compliance Officer and Legal
Counsel.
The Fund can be reached through:
Stacy Brice
1900 Shawnee Mission Parkway Suite 315
Mission Woods, KS 66205
Telephone: (816) 994-3200
About Ivanti Software, Inc.
Ivanti is an information technology (IT) and software company
headquartered in South Jordan, Utah. It produces software for IT
Security, IT Service Management, IT Asset Management, Unified
Endpoint Management, Identity Management and supply chain
management.
IVESTER'S TREE: Seeks Subchapter V Bankruptcy in Utah
-----------------------------------------------------
On April 11, 2025, Ivester's Tree & Lawn LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of Utah.
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 Ivester's Tree & Lawn LLC
Ivester's Tree & Lawn LLC is a comprehensive tree and wood service
company based in Tooele, Utah. The Company specializes in various
services including tree trimming, removal, pruning, stump grinding,
and firewood supply.
Ivester's Tree & Lawn LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Utah Case No.
25-21998) on April 11, 2025. In its petition, the Debtor reports
estimated assets and liabilities between $1 million and $10 million
each.
Honorable Bankruptcy Judge Peggy Hunt handles the case.
The Debtor is represented by Andres Diaz, Esq. at DIAZ & LARSEN.
J.D. SAC CONSULTING: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: J.D. SAC Consulting LLC
3939 Royal Drive NW, Suite 234
Kennesaw GA 30144
Business Description: J.D. SAC Consulting LLC, doing business as
Rocket Electric. is an electrical and
lighting contractor based in Kennesaw,
Georgia. The Company provides commercial
electrical services, lighting upgrades, and
EV charger installations across 13 U.S.
states. Its clients include major retailers
such as Walmart and Hertz.
Chapter 11 Petition Date: April 17, 2025
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 25-54195
Judge: Hon. Jeffery W Cavender
Debtor's Counsel: William Rountree, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta GA 30329
Tel: 404-584-1238
E-mail: wrountree@rlkglaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by James Elbert as managing member.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/TJYE3QI/JD_SAC_Consulting_LLC__ganbke-25-54195__0001.0.pdf?mcid=tGE4TAMA
JASMINE R ELMORE: Gets Extension to Access Cash Collateral
----------------------------------------------------------
Jasmine R. Elmore, DDS, PLLC received third interim approval from
the U.S. Bankruptcy Court for the Eastern District of North
Carolina, Greenville Division, to use cash collateral.
The third interim order signed by Judge Joseph Callaway authorized
Jasmine R. Elmore, a dental practice in Wilson, N.C., to use cash
collateral to fund its operations in accordance with its budget.
The budget shows total expenses of $73,361.62 for the period from
April 11 to May 10.
Potential secured creditors, including Live Oak Banking Company,
Rapid Finance and the U.S. Small Business Administration, will be
provided with protection in the form of a replacement lien on
post-petition cash and personal property.
As additional protection, Live Oak will receive payment in the
amount of $5,027.47.
The next hearing will be held on May 8.
Live Oak is represented by:
William Walt Pettit, Esq.
Hutchens Law Firm, LLP
6230 Fairview Road, Suite 315
Charlotte, N.C. 28210
Telephone: (704) 362-9255
Telecopier: (704) 362-9268
walt.pettit@hutchenslawfirm.com
About Jasmine R. Elmore DDS
Jasmine R. Elmore, DDS, PLLC owns and operates Wilson Pediatric
Dentistry, a pediatric dental practice located near Greenville,
N.C. The practice offers a wide range of services focused on
promoting the healthy growth and development of children's teeth.
With an emphasis on preventative care, the Debtor provides
treatments that support optimal dental health for young patients.
Jasmine R. Elmore, DDS, PLLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-00123) on January
13, 2025. In its petition, the Debtor reported total assets of
$68,777 and total liabilities of $1,493,926.
Judge Joseph N. Callaway handles the case.
The Debtor is represented by:
Danny Bradford, Esq.
Paul D. Bradford, PLLC
Tel: 919-758-8879
Email: dbradford@bradford-law.com
KATE QUINN: Gets Final OK to Use Cash Collateral
------------------------------------------------
Kate Quinn Organics, Inc. received final approval from the U.S.
Bankruptcy Court for the Eastern District of Washington to use cash
collateral.
The order signed by Judge Frederick Corbit authorized the company
to use cash collateral on an interim basis to pay its operating
expenses as set forth in the budget, with a 15% variance allowed.
As protection, the U.S. Small Business Administratio, Clear Finance
Technology Corp. and other secured lenders were granted replacement
liens with the same priority as their pre-bankruptcy liens.
In addition, Clear Finance Technology will receive a monthly
payment of $10,000.
About Kate Quinn Organics Inc.
Kate Quinn Organics, Inc. is a direct-to-consumer e-commerce
retailer of clothing for babies and kids, with matching clothes for
mothers. The company designs and manufactures its clothing in India
with collectible custom prints and styles, using some sustainable
and organic fabrics.
Kate Quinn Organics filed Chapter 11 petition (Bankr. E.D. Wash.
Case No. 25-00445) on March 14, 2025, listing up to $1 million in
assets and up to $10 million in liabilities. Katherine Quinn, chief
executive officer of Kate Quinn Organics, signed the petition.
Judge Frederick P. Corbit oversees the case.
Jason Wax, Esq., at Bush Kornfeld LLP, represents the Debtor as
legal counsel.
KYLE CHAPMAN: Court Extends Cash Collateral Access to May 31
------------------------------------------------------------
Kyle Chapman Motor Sales, L.P. and its affiliates received another
extension from the U.S. Bankruptcy Court for the Western District
of Texas, Austin Division, to use cash collateral.
The court order extended the companies' authority to use cash
collateral until May 31 and required the companies to make weekly
payments of $60,000 to Frost Bank, the companies' lender.
The order authorized the companies to purchase inventory not to
exceed $40,000 per week through May 31. Payments for the acquired
inventory will not be made until such vendors provide the title and
any other necessary paperwork.
A copy of the court's order and the companies' budget is available
at https://shorturl.at/gzVDm from PacerMonitor.com.
Frost Bank is represented by:
Leslie M. Luttrell, Esq.
Morris E. White III, Esq.
Luttrell + Carmody Law Group
One International Centre
100 N.E. Loop 410, Suite 615
San Antonio, TX 78216
Direct: 210.426.3605
Tel: 210.426.3600
luttrell@lclawgroup.net
twhite@lclawgroup.net
About Kyle Chapman Motor Sales
Kyle Chapman Motor Sales, L.P. is a family-owned and operated
automobile dealer in Buda, Texas.
Kyle filed Chapter 11 petition (Bankr. W.D. Tex. Case No. 24-10143)
on Feb. 13, 2024, with $1 million to $10 million in both assets and
liabilities.
The Debtor is represented by:
Todd Brice Headden, Esq.
Hayward PLLC
Tel: 737-881-7104
Email: theadden@haywardfirm.com
LAZARUS INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Lazarus Industries, Inc
3403 Lake Shore Road
Buffalo, NY 14219
Business Description: Lazarus Industries LLC is a construction and
fabrication firm based in Buffalo, New
York, that provides general contracting,
custom millwork, steel and aluminum
fabrication, and sitework services. It
primarily serves commercial and
infrastructure projects across the region,
completing most work in-house to maintain
quality and efficiency.
Chapter 11 Petition Date: April 16, 2025
Court: United States Bankruptcy Court
Western District of New York
Case No.: 25-10417
Judge: Hon. Carl L Bucki
Debtor's Counsel: Frederick J. Gawronski, Esq.
COLLIGAN LAW, LLP
12 Fountain Plaza
Suite 600
Buffalo, NY 14202-3613
Tel: 716-885-1150
Fax: 716-885-4662
E-mail: fgawronski@colliganlaw.com
Total Assets: $882,200
Total Liabilities: $7,566,027
The petition was signed by Frank Lazarus as managing member.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/Z4RZEBY/Lazarus_Industries_Inc__nywbke-25-10417__0001.0.pdf?mcid=tGE4TAMA
LINDO HOLDINGS: Seeks Chapter 11 Bankruptcy in California
---------------------------------------------------------
On April 15, 2025, Lindo Holdings LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Central District of
California. According to court filing, the
Debtor reports $1,500,738 in debt owed to 1 and 49 creditors.
The petition states funds will be available to unsecured
creditors.
About Lindo Holdings LLC
Lindo Holdings LLC holds ownership of the property situated at 236
S. Curtis Avenue in Alhambra, California 91030, with an estimated
worth of approximately $2.6 million.
Lindo Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-13059) on April 2,
2025. In its petition, the Debtor reports total assets of
$2,600,061 and total liabilities of $1,500,738.
Honorable Bankruptcy Judge Deborah J. Saltzman handles the case.
The Debtor is represented byMarc Aaron Goldbach, Esq. at GOLDBACH
LAW GROUP.
LITIGATION PRACTICE: Successor, Ch.11 Trustee Resolve Payment Fight
-------------------------------------------------------------------
Daniel Connolly of Law360 Bankruptcy Authority reports that a law
firm that obtained thousands of client files from the bankrupt
California-based debt relief company Litigation Practice Group PC
has agreed to a nearly $1 million payment to the bankruptcy estate,
resolving a months-long dispute over compensation.
About The Litigation Practice Group
The Litigation Practice Group P.C. sought protection for relief
under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
23-10571) on March 20, 2023, with as much as $1 million in both
assets and liabilities. Judge Scott C. Clarkson presides over the
case.
The Debtor tapped Khang & Khang, LLP as legal counsel and Grobstein
Teeple, LLP as accountant.
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee is represented by Fox Rothschild, LLP.
LODGING ENTERPRISES: Plan Exclusivity Period Extended to May 26
---------------------------------------------------------------
Judge Dale Somers of the U.S. Bankruptcy Court for the District of
Kansas extended Lodging Enterprises, LLC's exclusive periods to
file a plan of reorganization and obtain acceptance thereof to May
26 and July 22, 2025, respectively.
As shared by Troubled Company Reporter, the Debtor claims that it
has now resolved the majority of the foregoing matters and
otherwise stabilized the status of this reorganization case. Debtor
is currently moving forward with the formulation of a strategy for
the resolution of the case. In particular, Debtor believes that it
is now approaching the late stages of a comprehensive agreement
with Lender that would effectuate a successful outcome that is
favorable to all stakeholders in this case.
The Debtor contends that good grounds exist for approval of an
extension of exclusivity. Debtor has not engaged in any pattern of
delay in this case and is not seeking this extension as a
negotiating tactic to impede the conclusion of the case or leverage
creditors with an unreasonable plan of reorganization. To the
contrary, this request is intended to maintain a framework
conducive to an orderly, efficient and cost-effective resolution of
this case.
The Debtor explains that it has shown good faith progress towards a
successful conclusion to this case. Among other things, Debtor has
made material progress on a settlement term sheet with Lender which
could result in a consensual resolution of the bankruptcy case with
Lender. Thus, Debtor is not engaging in any delay, let alone
unreasonable delay.
Further, Debtor has addressed and, to some extent, continues to
address various issues listed. Debtor has successfully engaged with
its major creditor constituencies (i.e. the prepetition lender and
the Unsecured Creditors Committee) in establishing a firm basis for
post-petition business operations through consensual budgets and
corresponding authorization for the use of cash collateral. In
particular, Debtor negotiated a fourth consensual order for ongoing
use of cash collateral (through March 31, 2025) and continues to
pay its post petition obligations.
Lodging Enterprises, LLC is represented by:
Jonathan Margolies, Esq.
SEIGFREID & BINGHAM, P.C.
2323 Grand Boulevard Suite 1000
Kansas City, MO 64108
Tel: (816) 265-4195
Fax: (816) 474-3447
Email: jmargolies@sb-kc.com
- and -
Timothy A. ("Tad") Davidson II, Esq.
Brandon Bell, Esq.
Kaleb Bailey, Esq.
HUNTON ANDREWS KURTH LLP
600 Travis Street, Suite 4200
Houston, TX 77002
Phone: (713) 220-4200
Email: taddavidson@HuntonAK.com
bbell@HuntonAK.com
kbailey@HuntonAK.com
- and -
Jason W. Harbour, Esq.
HUNTON ANDREWS KURTH LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, Virginia 23219
Phone: (804) 788-8200
Email: jharbour@HuntonAK.com
About Lodging Enterprises
Founded in 1984, Lodging Enterprises, LLC, a company in Wichita,
Kansas, offers a full suite of crew accommodations, specializing in
24-hour food, lodging and hospitality services. A large segment of
the company's clientele are composed of railroad, and other
transportation-industry workers for whom it is essential that
lodging is available. The company owns and operates 44
Wyndham-branded hotels and 27 restaurants located in 23 states
across the country.
Lodging Enterprises filed a Chapter 11 petition (Bankr. D. Kan.
Case No. 24-40423) on June 26, 2024, with $100 million to $500
million in both assets and liabilities.
Jonathan Margolies, Esq., at SEIGFREID & BINGHAM, P.C., is the
Debtor's counsel.
MAGNATE CORP: Gets Court OK to Use Cash Collateral
--------------------------------------------------
Magnate Corp., LLC got the green light from the U.S. Bankruptcy
Court for the Middle District of Florida, Tampa Division, to use
the cash collateral of the U.S. Small Business Administration
retroactive to March 21.
The order penned by Judge Catherine Peek McEwen authorized the
interim use of cash collateral to pay the expenses set forth in the
company's budget.
SBA, a secured creditor, will be provided with protection in the
form of a post-petition lien on the cash collateral to the same
extent and with the same validity and priority as its
pre-bankruptcy liens.
As additional protection, Magnate Corp. was ordered to keep its
property insured in accordance with its loan and security documents
with the secured creditor.
About Magnate Corp. LLC
Magnate Corp., LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01709) on March 21,
2025, listing up to $500,000 in assets and up to $1 million in
liabilities. Jason Batten, authorized member, signed the petition.
Judge Catherine Peek McEwen oversees the case.
The Debtor is represented by:
Buddy D. Ford, Esq.
Buddy D. Ford, P.A.
Tel: 813-877-4669
Email: buddy@tampaesq.com
MAGNATE CORP: Michael Markham Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 21 appointed Michael Markham, Esq., as
Subchapter V trustee for Magnate Corp., LLC.
Mr. Markham, a partner at Johnson Pope Bokor Ruppel & Burns, LLP,
will be paid an hourly fee of $350 for his services as Subchapter V
trustee and will be reimbursed for work-related expenses incurred.
Mr. Markham declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael C. Markham, Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
401 E. Jackson Street, Suite 3100
Tampa, FL 33602
Phone: (727) 480-5118
Email: Mikem@jpfirm.com
About Magnate Corp. LLC
Magnate Corp., LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01709) on March 21,
2025, listing up to $500,000 in assets and up to $1 million in
liabilities. Jason Batten, authorized member, signed the petition.
Judge Catherine Peek McEwen oversees the case.
Buddy D. Ford, Esq., at Buddy D. Ford, P.A., represents the Debtor
as legal counsel.
MAINE CRAFT: Tanya Sambatakos Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 1 appointed Tanya Sambatakos, Esq. at
Molleur Law Office as Subchapter V trustee for Maine Craft
Distilling, LLC.
Ms. Sambatakos will be paid an hourly fee of $375 for her services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Sambatakos declared that she is a disinterested person
according to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tanya Sambatakos, Esq.
Molleur Law Office
190 Main Street, 3rd Floor
Saco, ME 04072
(207) 283-3777
Email: tanya@molleurlaw.com
About Maine Craft Distilling
Maine Craft Distilling, LLC produces and sells artisanal spirits
like Blueshine Blueberry Liquor, Ration Expedition Style Rum,
Sprigge Barrel Rested Gin, Black Cap Vodka, Whipple Tree Apple
Brandy, and Alchemy Dry Gin. The company offers its products online
and at its physical public house location, where it also hosts
public events featuring live music.
Maine Craft Distilling sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Me. Case No. 25-20062) on
March 21, 2025. In its petition, the Debtor reported total assets
of $593,878 and total liabilities of $1,281,429 as of March 17,
2025.
The Debtor is represented by:
D. Sam Anderson, Esq.
Bernstein Shur Sawyer & Nelson
Tel: 207-774-1200
Email: sanderson@bernsteinshur.com
MANE SOURCE: Gets Interim OK to Use Cash Collateral
---------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Greenville Division granted Mane Source Counseling,
PLLC's motion to use cash collateral on an interim basis.
The interim order signed by Judge David Warren authorized Mane
Source Counseling to use cash collateral to pay the expenses set
forth in its 30-day budget and may spend as much as 10% more if
needed.
The budget projects total operational expenses of $7,635.73.
As protection, post-petition liens on Mane Source Counseling's cash
and inventory will be granted to potential secured creditors,
limited to the extent of actual use and validity of pre-bankruptcy
liens.
The next hearing is scheduled for April 29.
About Mane Source Counseling PLLC
Mane Source Counseling, PLLC provides counseling and wellness
services with the help of five horses used in therapy sessions.
Mane Source Counseling sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-00833) on March
7, 2025, listing up to $500,000 in assets and up to $1 million in
liabilities. Cheryl Meola, company owner, signed the petition.
Judge David M. Warren oversees the case.
The Debtor is represented by:
Kathleen O'Malley, Esq.
Stevens Martin Vaughn & Tadych, PLLC
2225 W. Millbrook Road
Raleigh, NC 27612
Phone: 919-582-2300
Fax: (866) 593-7695
Email: komalley@smvt.com
MARSHALL MEDICAL: Fitch Affirms 'BB+' IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed Marshall Medical Center, CA's (MMC)
Issuer Default Rating (IDR) at 'BB+'.
The Rating Outlook is Stable.
Entity/Debt Rating Prior
----------- ------ -----
Marshall Medical
Center (CA) LT IDR BB+ Affirmed BB+
Marshall Medical
Center (CA) /Issuer
Default Rating/1 LT LT BB+ Affirmed BB+
The 'BB+' rating affirmation reflects MMC's leading market position
as the sole health care provider in its service area. The rating
also reflects a generally stable payor mix, and a consistent level
of operational performance in fiscal 2024, which was slightly
better than breakeven (5.4% operating EBITDA margin). Fitch
continues to view MMC's operating risk profile as 'Midrange'. Fitch
expects margins to remain around current levels over the medium
term and improve incrementally to approximately 7% as top-line
revenue grows through volume and reimbursement increases. Fitch
views limited expense increases as reasonable while expenses are
managed prudently.
Fitch believes MMC's financial profile is more susceptible to
operating volatility (assessed as 'Weaker' - [bb]). This is due to
the organization's limited balance sheet flexibility at lower
levels to absorb more elevated capital investments required to
comply with California's seismic requirements.
SECURITY
Bond security is not applicable since MMC's only rating is the
IDR.
KEY RATING DRIVERS
Revenue Defensibility - 'bbb'
Leading Market Position and Stable Payor Mix
MMC's 'Midrange' revenue defensibility reflects its leading market
position as the sole health care provider in a rural, economically
healthy community with limited competition for acute care services.
The hospital's market share is stable and is about 3x higher than
its closest competitor. Combined Medicaid (Medi-Cal) and self-pay
accounted for approximately 19.6% of gross revenues in fiscal 2024.
Medicare exposure simultaneously remains high at approximately 61%
due to the area's aging population.
MMC's payor mix overall is generally stable. It demonstrates
incremental change with Medicare becoming more elevated. MMC also
benefits from California's (HQAF) program due to its demographics
and rural designation, which Fitch expects to continue.
Operating Risk - 'bbb'
Breakeven and Consistent Fiscal 2024 Performance; Long-Term Capex
Planned
MMC recorded an operating gain of approximately $1 million in
fiscal 2024. This translated into a 5.4% operating EBITDA margin,
down from the prior year's 6.3% margin but largely consistent over
the last four years. MMC's operating EBITDA margin has averaged
5.4% over the period. Operational performance has been relatively
stable at or near current levels, which is around breakeven.
Revenues have slightly outpaced expense growth while the
organization has been confronting various industry-related expense
headwinds, largely from higher inflationary pressures such as
contract labor and staffing. Management has largely been able to
contain these pressures over the past two years.
Operating performance was slightly ahead of budget as of Jan. 31,
2025 (unaudited Q1FY25). Fitch notes that the first quarter is
generally softer with MMC generating a 4.3% operating EBITDA
margin. Management expects to end fiscal 2025 with an approximate
5.5% operating EBITDA margin, which Fitch views as attainable.
The average age of the plant is somewhat elevated at 14.4 years as
of FYE 2024. Medium-term capital plans are considered manageable
but higher than historical spending amounts. MMC will need to make
various investments to have its facilities seismically compliant
beyond 2030 due to California's seismic requirements for hospitals.
Management is in the process of making upgrades and anticipates
spending more than 1x depreciation annually through 2030, which
will primarily come from operating cash flow.
Financial Profile - 'bb'
Stable, but Lower Capital-Related Ratios
At FYE 2024, MMC had approximately 69 days cash on hand (DCOH) and
cash-to-adjusted debt of approximately 60%. This is relatively
stable from the prior year but shows a downward trend from
historical ratios when DCOH peaked and cash-to-adjusted debt peaked
at 118 days and 86%, respectively, at FYE 2021.
Fitch views MMC's financial profile assessment as 'Weaker' (bb), as
stated above. This reflects the lower balance sheet ratios and
thinner financial cushion, which is consistent with the 'BB+' IDR.
The recent decline in unrestricted liquidity resources is primarily
related to decreased operational cash flow and heightened capital
expenditures. Fitch views the hospital's asset allocation as having
moderate exposure to equity markets, with approximately 34% of its
investments directed to equities as of Oct. 31, 2024, with the
remainder invested in cash and fixed-income assets.
Fitch's forward-looking stress scenario indicates that leverage
metrics will see relative stability over the next several years,
with maintenance of key leverage metrics that continue to support
the 'bb' financial profile.
Asymmetric Additional Risk Considerations
No asymmetric risk considerations were used in this rating
determination.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- If operating EBITDA margins weaken from current levels and are
below 5%-6% for a sustained period with no plan for improvement;
- Although unexpected, the incurrence of a significant amount of
additional debt to fund capex requirements that would result in the
deterioration of balance sheet and capital-related ratios such that
cash-to-adjusted-debt is less than 50%.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Sustained improvement in operating performance such that
operating EBTIDA margins are closer to 7%;
- Fitch's expectation that cash-to-adjusted will be sustained above
75%, even in a stress case, supporting a stronger financial profile
assessment.
PROFILE
Marshall Medical Center (MMC) is a not-for-profit stand-alone
hospital located in Placerville, CA, approximately 45 miles east of
Sacramento. The hospital operates a 111-bed general acute-care
hospital as well as several rural clinics and provides health care
services to the residents of El Dorado County.
MMC maintains a strong market position in its service area with
competition mainly from Kaiser Permanente as well as other tertiary
providers in the greater Sacramento area. The hospital generated
approximately $340 million of total revenues as of fiscal 2024
(October 31 YE).
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.
MEDICAL SOLUTIONS: PSOIX Marks $731K Loan at 29% Off
----------------------------------------------------
The Palmer Square Opportunistic Income Fund has marked its $731,546
loan extended to Medical Solutions Holdings, LLC to market at
$521,534 or 71% of the outstanding amount, according to PSOIX's
Form N-CSR for the fiscal year ended July 31, 2024, filed with the
U.S. Securities and Exchange Commission.
PSOIX is a participant in a Loan to Medical Solutions Holdings,
LLC. The loan accrues interest at a rate of 8.185% (3-Month Term
SOFR+325 basis points) per annum. The loan matures on November 1,
2028.
PSOIX was organized as a Delaware statutory trust on May 1, 2014,
and is registered as a non-diversified, closed-end management
investment company under the Investment Company Act of 1940, as
amended. Shares of the Fund are being offered on a continuous
basis.
PSOIX is an investment company and accordingly follows the
investment company accounting and reporting guidance of the
Financial Accounting Standards Board (FASB) Accounting Standard
Codification Topic 946 "Financial Services—Investment
Companies".
PSOIX values equity securities at the last reported sale price on
the principal exchange or in the principal over the counter market
in which such securities are traded, as of the close of regular
trading on the NYSE on the day the securities are being valued or,
if the last-quoted sales price is not readily available, the
securities will be valued at the last bid or the mean between the
last available bid and ask price.
PSOIX is led by Jeffrey D. Fox as president and principal executive
officer and Stacy Brice Chief Compliance Officer and Legal
Counsel.
The Fund can be reached through:
Stacy Brice
1900 Shawnee Mission Parkway Suite 315
Mission Woods, KS 66205
Telephone: (816) 994-3200
About Ivanti Software, Inc.
Ivanti is an information technology (IT) and software company
headquartered in South Jordan, Utah. It produces software for IT
Security, IT Service Management, IT Asset Management, Unified
Endpoint Management, Identity Management and supply chain
management.
MILLERKNOLL INC: S&P Rates Secured Revolving Credit Facility 'BB+'
------------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '2'
recovery rating to MillerKnoll Inc.'s executed bank credit
facilities ($725 million senior secured revolving credit facility
and $400 million term loan A) due April 2030. The '2' recovery
rating indicates S&P's expectation of substantial (70%-90%; rounded
estimate: 75%) recovery in the event of a default. MillerKnoll will
use the proposed term loan A proceeds to refinance its existing
term loan A ($320 million outstanding as of March 1, 2025) and pay
down a portion of borrowings under the existing revolving credit
facility ($414 million outstanding as of March 1, 2025). The new
credit facilities will have substantially the same terms as the
existing facilities.
All other ratings, including the 'BB' issuer credit rating on
MillerKnoll Inc., are unchanged. The rating outlook is stable.
ISSUE RATINGS – RECOVERY ANALYSIS
Key analytical factors
The pro forma debt structure consists of:
-- A $725 million revolver ($385 million outstanding) maturing in
April 2030, the facility will include a $200 million multicurrency
sublimit;
-- A $400 million term loan A maturing in April 2030; and
-- A $625 million term loan B maturing in July 2028 ($604.7
million outstanding as of March 1, 2025).
MillerKnoll Inc. is the sole borrower under the credit facilities,
which are guaranteed jointly and severally by all existing and
newly acquired or created wholly owned domestic subsidiaries,
subject to customary limitations and exceptions. The credit
facilities are secured by a first-priority perfected lien on all
property and assets (tangible and intangible), including pledges by
all loan parties of their equity interests in first-tier
subsidiaries (limited to 65% of the voting capital stock in foreign
subsidiaries, subject to customary limitations and exceptions). S&P
views the credit facility tranches as pari passu.
MillerKnoll Inc. is a U.S. corporation based in Zeeland, Mich. In
the event of an insolvency proceeding, we anticipate the company
would file for bankruptcy protection under the auspices of the U.S.
federal bankruptcy court system and would not involve any other
foreign jurisdiction.
S&P said, "We believe creditors would receive maximum recovery in a
payment default scenario if the company were reorganized instead of
liquidated. This is because of its satisfactory brand equity, good
market position, well-established distribution network, and
long-standing customer and supplier relationships. Therefore, in
evaluating recovery prospects for its debtholders, we assume the
company continues as a going concern and arrive at our emergence
enterprise value by applying a multiple to our assumed emergence
EBITDA."
Simulated default assumptions
S&P's simulated default scenario considers a default in 2030 caused
by significantly decreased demand from corporate and government
clients that have reduced office space because more work is done
remotely; prolonged economic weakness that hurts spending by
consumers on home office products; high commodity costs; and
elevated competition. These factors lead to significant EBITDA and
cash flow deterioration, triggering a payment default.
Valuation
Calculation of EBITDA at emergence:
-- Debt service: $122 million (default year interest plus
amortization)
-- Maintenance capex: $78 million
-- Default EBITDA proxy: $200 million
-- Cyclicality adjustment: $10 million (5% of default EBITDA
proxy--consumer durables)
-- Emergence EBITDA: $210 million
S&P estimates a gross emergence enterprise value of $1.26 billion,
which is based on a 6x multiple on our estimate of its emergence
EBITDA. The 6x multiple is higher than we typically use for the
durables sector. This reflects the company's good brand equity,
reputation for design expertise, competitive market position, and
the improved scale of its operations following the Knoll
acquisition.
Simplified waterfall
-- Emergence EBITDA: $210 million
-- Multiple: 6x
-- Gross recovery value: $1.26 billion
-- Net recovery value for waterfall after administrative expenses
(5%): $1.2 billion
-- Obligor/nonobligor valuation split: 70%/30%
-- Estimated senior secured claims: $1.54 billion
-- Value available for first-lien claims (including value for
deficiency claim): $1.2 billion
--Recovery expectations: 70%-90% (rounded estimate: 75%)
MISS BRENDA: Geoff Groshong Named Subchapter V Trustee
------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Geoff Groshong as
Subchapter V trustee for Miss Brenda, LLC.
Mr. Groshong will be paid an hourly fee of $400 for his services as
Subchapter V trustee, an hourly fee of $150 for his paralegal,
Kalen Daniels, and will be reimbursed for work-related expenses
incurred.
Mr. Groshong declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Geoff Groshong
600 Stewart Street, Suite 1300
Seattle, WA 98101
Phone: 206.508.0585
Email: trustee@groshonglaw.com
About Miss Brenda LLC
Miss Brenda, LLC is a commercial fishing business located in Sand
Point, Alaska, focusing on the use of fishing nets, crab and cod
traps, and various other equipment to catch marine species.
Miss Brenda sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Alaska Case No. 25-00036) on March 19, 2025. In its
petition, the Debtor reported total assets of $1,572,000 and total
Liabilities of $842,546.
The Debtor is represented by:
Jennifer L. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
1403 8th Street
Marysville, WA 98270
Tel: (425) 212-4800
Fax: (425) 212-4802
Email: courtmail@expresslaw.com
MISSION POINT: Seeks Chapter 11 Bankruptcy in Michigan
------------------------------------------------------
On April 16, 2025, Mission Point of Detroit LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Eastern District
of Michigan. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
About Mission Point of Detroit LLC
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.
Mission Point of Detroit LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-43883)
on April 16, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Maria L. Oxholm handles the case.
The Debtor is represented by Ryan Heilman, Esq. at HEILMAN LAW
PLLC.
MITEL NETWORKS: Gets Court Okay for Debt Restructuring Plan
-----------------------------------------------------------
Jonathan Randles of Bloomberg News reports that Mitel Networks has
gained approval from a U.S. bankruptcy court for a restructuring
plan that slashes over $1 billion in debt, resolves legal
challenges tied to a disputed 2022 debt transaction, and transfers
ownership of the telecom company to its lenders.
Judge Christopher Lopez announced Thursday, April 17, 2025, he
would confirm the plan, which was reached ahead of Mitel's
bankruptcy filing last month. According to a March court filing,
backers of the restructuring include Invesco Ltd., PGIM Inc., and
Apollo Global Management Inc.
The deal also settles litigation brought by creditors who were
excluded from the company's 2022 debt exchange, according to
Bloomberg News.
About Mitel Networks Inc.
Mitel Networks Inc. provides communication solutions.
Mitel Networks Inc. and affiliates sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90094) on
March 10, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 billion and $10 billion each.
MOSAIC SWNG: Gets Extension to Access Cash Collateral
-----------------------------------------------------
Mosaic SWNG, LLC received fourth interim approval from the U.S.
Bankruptcy Court for the Southern District of Texas to use its
secured lender's cash collateral.
The fourth interim order signed by Judge Christopher Lopez
authorized the company to use the cash collateral of Fannie Mae to
pay the expenses set forth in its budget, with a 10% variance
allowed.
The budget shows total expenses of $29,000 for the week ending
April 10; $64,500 for the week ending April 17; $72,780 for the
week ending April 24; $44,000 for the week ending May 1; and
$29,000 for the week ending May 8.
The lender's cash collateral consists of rents and accounts
receivable generated from Mosaic's assets, including a 504-unit
multifamily residential real property located in Pasadena, Texas.
As protection, Fannie Mae was granted post-petition replacement
liens on all property of the company, whether acquired before or
after the petition date.
To the extent the replacement liens are insufficient to provide
protection against the diminution, if any, in value of the lender's
interest in the collateral, Fannie Mae will be granted a
superpriority claim.
Mosaic SWNG was ordered to remit to the secured lender a cash
payment equal to the amount by which its remaining cash balance at
the end of the prior calendar month exceeded $80,000.
A final hearing is scheduled for May 8.
Fannie Mae is represented by:
Keith M. Aurzada, Esq.
Michael P. Cooley, Esq.
Dylan T.F. Ross, Esq.
2850 N. Harwood Street, Suite 1500
Dallas, TX 75201
Telephone: (469) 680.4200
Facsimile: (469) 680.4299
kaurzada@reedsmith.com
mpcooley@reedsmith.com
dylan.ross@reedsmith.com
About Mosaic SWNG LLC
Mosaic SWNG LLC, doing business as Mosaic Apartments, was
established in October 2021 with the exclusive purpose of acquiring
and owning the 504-unit multifamily residential property known as
"Mosaic Apartments." The apartment complex, built in 1981, is
located at 4025 Burke Road, Pasadena, Texas, in Harris County.
Mosaic SWNG sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Texas Case No. 25-90010) on January 30, 2025,
listing between $50 million and $100 million in both assets and
liabilities.
Judge Christopher M. Lopez handles the case.
The Debtor is represented by:
Melissa A. Haselden, Esq.
Haselden Farrow, PLLC
708 Main Street, 10th Floor
Houston, TX 77002
Tel: 832-819-1149
Email: MHaselden@HaseldenFarrow.com
MT. BETHEL CHRISTIAN ACADEMY: S&P Assigns 'BB+' Rev. Bond Rating
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' rating to the Development
Authority of Cobb County, Ga.'s educational facilities revenue
bonds series 2025 ($50 million) issued for Mt. Bethel Christian
Academy (MBCA).
The outlook is stable.
S&P said, "We analyzed the school's environmental, social, and
governance risks and consider them neutral in our credit rating
analysis.
"The stable outlook reflects our opinion the school will maintain
enrollment trends throughout its campus relocation, enabling MBCA
to maintain positive operating results on a full-accrual basis and
its financial resource ratios.
"We could lower the rating if enrollment levels are not attained as
projected, leading to sustained full-accrual operating deficits,
further weakening its already thin liquidity. Additionally, though
unlikely, additional debt without a sufficient revenue stream could
result in a negative rating action.
"We could consider a positive rating action if it demonstrates a
trend of positive financial performance, improving its resources
and debt metrics at levels consistent with higher rated peers."
NEW FOCUS: Seeks To Sell 2017 Ford Transit
------------------------------------------
New Focus Mental Health seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida, Miami Division, to sell
Ford Vehicle, free and clear of all liens, interests, and
encumbrances.
The Debtor is headquartered in Miami, Florida. The Debtor provides
supportive services to individuals with ongoing depression and
anxiety by providing a wide array of services to individuals
through its network of independent contractors and targeted case
managers. Such services include psychosocial rehabilitation
(assisting clients in gaining access to financial and insurance
benefits, employment, medical, social, education, and functional
services), and developing/implementing targeted service plans with
the goal of enhancing the client's inclusion in the community.
The Debtor owns the following 2017 Ford Transit 350 vehicle (VIN:
1FBZX2YM1HKA28433), which is not currently used nor is it required
to operate its business.
The Debtor seeks to intends to sell the vehicle as it currently
remains unused and no longer provides a benefit to day-to-day
operations of the Debtor. Additionally, the Debtor intends to sell
the Vehicle to diminish some of its current cash flow challenges by
removing the Vehicle's monthly expenses.
The Vehicle is subject to a lien from Ally Bank.
The sale proceeds from the Vehicle will be used to pay off the
Lienholder. The Debtor's Manager has inquired Carmax.com about a
potential offer to gauge the potential sale proceeds that could be
generated from the sale of the Vehicle. In turn, Carmax provided a
proposed offer of $6,600.00, valid through April 16, 2025.
The Debtor will offer the Vehicle for sale on www.carmax.com for
the price of $6,600.00. In the event that the Debtor does not
receive an offer equal to or greater than the Minimum Bid from
Carmax.com, the Debtor may inquire with local vehicle dealers
willing to enter a higher offer or match the Minimum Bid.
The successful purchaser of the Vehicle is responsible for the
removal of the Vehicle and the costs.
The sale of the Vehicle shall be "as is" / "where is" with no
representations or warranties.
About New Focus Mental Health
New Focus Mental Health is headquartered in Miami, Florida, which
provides supportive services to individuals with ongoing depression
and anxiety by providing a wide array of services to individuals
through its network of independent contractors and targeted case
managers. Such services include psychosocial rehabilitation
(assisting clients in gaining access to financial and insurance
benefits, employment, medical, social, education, and functional
services), and developing/implementing targeted service plans with
the goal of enhancing the client's inclusion in the community.
New Focus Mental sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No.: 25-13613-LMI) on April
1, 2025.
Judge Laurel M. Isicoff presides over the case.
Jacqueline Calderin, Esq., at AGENTIS PLLC represents the Debtor as
legal counsel.
NITRO FLUIDS: Gets Court Approval to Sell Assets in Chapter 11
--------------------------------------------------------------
Emily Lever of Law360 Bankruptcy Authority reports that a Texas
bankruptcy court on Thursday, April 17, 2025, authorized Nitro
Fluids, a fracking services provider, to proceed with the sale of
certain assets to a stalking horse bidder for approximately $10
million.
About Nitro Fluids LLC
Nitro Fluids, LLC, filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No.
24-60018) on May 15, 2024, listing $50 million to $100 million in
both assets and liabilities. The petition was signed by Brad Walker
as chief restructuring officer.
Judge Christopher M. Lopez presides over the case.
Eric Thomas Haitz, Esq., at Bonds Ellis Eppich Schafer Jones LLP,
is the Debtor's counsel.
NORTH JERSEY TIRE: Brian Hofmeister Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Brian Hofmeister,
Esq., as Subchapter V trustee for North Jersey Tire, Auto and Truck
Repair, LLC.
Mr. Hofmeister will be paid an hourly fee of $400 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Hofmeister declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brian W. Hofmeister, Esq.
3131 Princeton Pike
Building 5, Suite 110
Lawrenceville, NJ 08648
Phone: (609) 890-1500
Email: bwh@hofmeisterfirm.com
About North Jersey Tire Auto and Truck Repair
North Jersey Tire, Auto and Truck Repair, LLC sought protection for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case
No. 25-12719) on March 17, 2025, listing $500,001 to $1 million in
assets and $100,001 to $500,000 in liabilities.
Judge Michael B Kaplan presides over the case.
Justin M Gillman, Esq. at Gillman Capone LLC represents the Debtor
as counsel.
PIER 115: Joseph Schwartz Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Joseph Schwartz,
Esq., at Riker Danzig Scherer Hyland & Perretti, LLP, as Subchapter
V trustee for Pier 115, LLC.
Mr. Schwartz will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Schwartz declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Joseph L. Schwartz, Esq.
Riker Danzig Scherer Hyland & Perretti, LLP
One Speedwell Avenue,
Morristown, NJ 07962-1981
Phone: (973) 451-8506
Email: jschwartz@riker.com
About Pier 115 LLC
Pier 115, LLC is a modern American restaurant located on the
waterfront in Edgewater, New Jersey. The establishment offers a
scenic view of the Hudson River, with a prime location that extends
out into the river, providing a relaxed atmosphere with views of
nearby Manhattan. The restaurant specializes in contemporary
American cuisine and also features a lounge area. Additionally,
Pier 115 hosts private events and offers services such as takeout
and delivery.
Pier 115 sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D.N.J. Case No. 25-12533) on March 12, 2025. In its
petition, the Debtor reported estimated assets up to $50,000 and
estimated liabilities between $1 million and $10 million.
The Debtor is represented by:
Mark J. Politan, Esq.
POLITAN LAW, LLC
88 East Main Street, #502
Mendham, NJ 07945
Tel: 973-768-6072
Email: mpolitan@politanlaw.com
PREMIUM CRANE: Court Extends Cash Collateral Access to May 22
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, extended Premium Crane, LLC's authority to use cash
collateral from March 27 to May 22.
The third interim order authorized the company to use cash
collateral to pay the expenses set forth in its budget, plus an
amount not to exceed 10% for each line item.
Secured creditors, including SouthState Bank, N.A. and M&T
Equipment Finance Corporation were granted replacement liens on
post-petition assets as protection for the use of their cash
collateral.
As additional protection, SouthState Bank will continue to receive
a monthly payment of $7,500 until further order of the court or
confirmation of a plan of reorganization. The monthly payment
started in February.
Meanwhile, M&T will receive a monthly payment of $2,500 starting
this month.
Premium Crane's authority to use cash collateral will terminate on
the occurrence of certain events, including the entry of a final
order or the dismissal of its Chapter 11 case.
The next hearing is scheduled for May 22.
SouthState Bank is represented by:
Christian P. George, Esq.
Akerman LLP
50 North Laura Street, Suite 3100
Jacksonville, FL 32202
Telephone: (904) 798-3700
Facsimile: (904) 798-3730
christian.george@akerman.com
M&T is represented by:
Eric B. Zwiebel, Esq.
Emanuel & Zwiebel, PLLC
7900 Peters Road
Executive Court at Jacaranda
Building B, Suite 100
Plantation, FL 33324
Telephone: (954) 424-2005
Facsimile: (954) 533-0138
eric.zwiebel@emzwlaw.com
About Premium Crane
Premium Crane, LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-07071) on
November 27, 2024, with total assets of $3,041,564 and total
liabilities of $3,076,549.
Judge Roberta A. Colton oversees the case.
The Debtor is represented by:
Buddy D. Ford, Esq.
Buddy D. Ford, P.A.
Tel: 813-877-4669
Email: buddy@tampaesq.com
REBELLION POINT: Seeks Subchapter V Bankruptcy in North Carolina
----------------------------------------------------------------
On April 14, 2025, Rebellion Point Entertainment LLC filed
Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern
District of North Carolina. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will not be
available to unsecured creditors.
About Rebellion Point Entertainment LLC
Rebellion Point Entertainment LLC a/k/a East Coast Game Rooms is a
family-owned retailer and outfitter based in Kitty Hawk, North
Carolina, with over four decades of experience in both residential
and commercial entertainment spaces. The Company offers a wide
selection of game room products including arcade machines,
billiards, ping pong, shuffleboard, and custom furniture. It also
provides rentals, delivery, installation, and repair services for
customers in the Outer Banks and broader East Coast region.
Rebellion Point Entertainment LLC sought relief under Subchapter V
of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No.
25-01352) on April 14, 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 Pamela W. Mcafee handles the case.
The Debtor is represented by William P. Janvier, Esq. at STEVENS
MARTIN VAUGHN & TADYCH, PLLC.
RMBQ INC: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: RMBQ, Inc.
d/b/a Ramones Mexican BBQ
d/b/a California Burrito Company LLC
d/b/a Craft Burrito Company
303 Industrial Way, Ste. 4
Fallbrook, CA 92028
Business Description: RMBQ, Inc. operates multiple food businesses
in Fallbrook, California, including Ramones
Mexican BBQ, California Burrito Company, and
Craft Burrito Company. Ramones Mexican BBQ
combines traditional Mexican cuisine with
barbecue offerings, while California Burrito
Company specializes in customizable
burritos, bowls, and tacos with options for
various dietary preferences. Craft
Burrito Company features signature burritos,
local beer, and a woodsy-chic setting with
patio seating.
Chapter 11 Petition Date: April 16, 2025
Court: United States Bankruptcy Court
Southern District of California
Case No.: 25-01511
Judge: Hon. J Barrett Marum
Debtor's Counsel: Joanne P. Sanchez, Esq.
SANCHEZ & BALTAZAR ATTORNEYS, P.C.
1140 S. Tremont Street, Suite 105
Oceanside CA 92054
Tel: (760) 302-4652
E-mail: joanne@sanchezbaltazar.com
Total Assets: $195,962
Total Liabilities: $1,978,216
Raymond Gomez signed the petition in his capacity as chief
executive officer.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/DKHCGTI/RMBQ_Inc__casbke-25-01511__0001.0.pdf?mcid=tGE4TAMA
ROCKRIDGE2016 LLC: Seeks Chapter 11 Bankruptcy in Texas
-------------------------------------------------------
On April 14, 2025, Rockridge2016 LLC filed Chapter 11 protection
in the U.S. Bankruptcy Court for the Southern District of Texas.
According to court filing, the Debtor reports between $50 million
and $100 million in debt owed to 1 and 49 creditors. The petition
states funds will not be available to unsecured creditors.
About Rockridge2016 LLC
Rockridge2016 LLC owns and operates Rockridge Place Apartments,
located at 16818 City View Place in Houston, TX 77060.
Rockridge2016 LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No.: 25-32047) on April
14, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $50 million and $100 million each.
Honorable Bankruptcy Judge Jeffrey P. Norman handles the case.
The Debtor is represented by James Q. Pope, Esq. at THE POPE LAW
FIRM.
RYMAN HOSPITALITY: Fitch Affirms BB- LongTerm IDR, Outlook Positive
-------------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) of Ryman Hospitality Properties, Inc. (RHP) at 'BB-'. The
Long-Term IDR of RHP Hotel Properties, LP has also been affirmed at
'BB-'. Additionally, the senior secured credit facility has been
affirmed at 'BB+' with a Recovery Rating of 'RR1', and the senior
unsecured notes have been affirmed at 'BB-'/'RR4'. The Rating
Outlook is Positive.
The Positive Outlook reflects Fitch's expectations that RHP's REIT
leverage will remain below 4.5x, consistent with a 'BB' rating and
reflecting continued strong performance in RHP's operating and
financial profile. The revenue visibility provided by RHP's group
business differentiates it from lodging peers and mitigates
volatility but does not offset lodging cyclicality. Current
economic uncertainty, including potential indirect impacts from
widespread tariffs, delays the possibility of an upgrade to a 'BB'
IDR. Nevertheless, sustained strong booking trends amid economic
turmoil could lead to a future upgrade.
Key Rating Drivers
Uncertain Economic Outlook: A looming tariff increase on U.S. goods
imports is expected to directly affect consumers by raising the
prices of imported goods such as food and autos. Targeted imports
represent a notable portion of U.S. consumption, potentially
driving up consumer prices unless retailers absorb the costs
through reduced margins.
For RHP, the broader economic impact of higher import costs could
lead to reduced spending by consumers and businesses, directly
affecting RHP's group and leisure businesses. This scenario also
implies increased input costs for goods needed in its hospitality
operations. RHP may struggle to pass these costs to consumers, as
higher prices could dampen consumer demand.
Enhanced Leverage Profile: Fitch projects natural deleveraging from
EBITDA growth throughout the forecast period. In 2024, RHP's REIT
leverage was 4.0x, at the lower end of the company's policy range
of 4.0x-4.5x. Fitch considers both the REIT and lodging aspects
when determining the appropriate sensitivities to rate RHP through
the cycle given the evolution of its business model. Fitch
forecasts REIT leverage declining to 3.9x in 2026, below the
issuer's leverage target and expects it to return to the 4.0x-4.5x
range through debt issuance or accretive investments.
Since 2019, RHP has accessed the unsecured market five times,
highlighting the underlying balance sheet changes and
through-the-cycle access at competitive rates on an unsecured
basis. The transition to an unsecured financial structure is in
line with hotel REIT peers and indicates RHP's strengthened capital
access. The unencumbered pool consists of four of their largest six
properties except the Gaylord Opryland and Texan, both with equity
pledges. These two properties represent the largest share of RHP's
operations. Further action to unencumber them would significantly
increase the unencumbered asset pool.
Group Focus a Differentiator: Fitch views RHP's forward booking
window positively relative to other lodging companies, as it
provides visibility into future cash flows. The average booking
window of 2.9 years differentiates it from hotel REIT peers. As of
Dec. 31, 2024, approximately 74% of RHP's room nights were derived
from the group business, which insulates the company from the more
volatile and less-predictable leisure trends. This acts as a buffer
during a downturn, particularly with cancellation and attrition
fees. While this mitigates risk, it does not eliminate it, as the
hotel industry is highly cyclical.
Strength in Group Business: RHP has captured group demand at
attractive rates without compromising occupancy, demonstrated by
the YoY average daily rate growth of 4.9% for 2024. This is further
evidenced by same-store revenue per available room (RevPAR)
guidance, including renovation disruptions, at a midpoint of 3.5%
for the full-year 2025. RHP successfully rotates customers within
brand offerings to support group retention, providing a recurring
revenue stream. RHP works exclusively with Marriott to manage its
hotels, which may suggest a lack of diversification. However, for
RHP, it ensures consistent customer service across properties and
drives repeat group business.
Well-Positioned Quality Portfolio: RHP owns a high-quality,
concentrated portfolio consisting primarily of six specialized
hotels competitively positioned within the large group destination
resort market. The company's smallest large group hotel has 1,002
rooms, and five of its six largest hotels rank among the six
largest non-gaming U.S. hotels by exhibit and meeting space square
footage. The low existing and incoming supply of large group hotels
allow RHP to capture growing group demand. RHP has announced
various renovation projects to be completed over the next couple of
years, which will further enhance its niche property offerings.
Parent Subsidiary Linkage: Fitch rates the parent REIT and
subsidiary operating partnership on a consolidated basis, using the
weak parent/strong subsidiary approach under its Parent and
Subsidiary Linkage Criteria. Open access and control factors are
strong, based on the entities operating as a single enterprise with
strong legal and operational ties.
Peer Analysis
Ryman's most closely rated peer is Host Hotels & Resorts, L. P.
(BBB/Stable), another lodging REIT. RHP operates a more
concentrated portfolio by geography, price/amenity, brand and
property manager. However, RHP's focus on the group and convention
segment with longer booking windows that provide cash flow
visibility is a credit positive. In addition, attrition fees and
rebooking windows help buffer cash flow cyclicality in an overall
volatile industry.
Host's brand offerings are diversified across Hyatt, Hilton,
Marriott, Four Seasons and Accor, whereas Ryman works solely with
Marriott. The single property manager means less-diversified
offerings, but it has been advantageous in driving recurring
business. RHP's asset concentration within large group hotels is
also well positioned from an existing and future supply standpoint
given the capital intensity.
Host is larger, primarily in gateway markets, and 99% unencumbered,
providing more stable ability to raise large amounts of secured
debt quickly if needed. Ryman's recent issuances have meaningfully
unencumbered assets, progressing towards the balance sheets of
investment-grade REIT peers, which Fitch views as credit positive.
Ryman has issued five unsecured bonds and refinanced its existing
facility secured by two equity pledges over the last five years.
This has demonstrated consistent access to the market through
common equity, private placement unsecured bonds and bank debt,
secured debt, and joint ventures.
Key Assumptions
- Overall revenue growth of 3.3%, 4.9%, 4.3%, and 3.7% in
2025-2028.
- 3.5-6.5% digit RevPAR growth through forecast period, with
2024-2028 CAGR of 4.7%, driven by steady ADR growth and continued
occupancy improvements toward pre-pandemic levels.
- Relatively muted RevPAR growth in 2025 at 3.5%, primarily due to
construction disruption.
- Occupancy improves steadily to 73.5% by 2028.
- Non-room revenue CAGR of 3.3% in 2024-2028, slightly below room
revenue.
- Opry Entertainment Group (OEG) business sees mid-single digit
growth throughout the forecast period, with 2024-2028 CAGR of
5.5%.
- Base interest rates applicable to the company's outstanding
variable rate debt obligations reflects current SOFR rates.
- REIT leverage declines from 4.1x to 3.1x by the end of the
forecast period.
Recovery Analysis
Fitch applies the generic approach for issuers in the 'BB' rating
category and equalizes the IDR and unsecured debt instrument
ratings when average recovery prospects are present, per its
"Corporates Recovery Ratings and Instrument Ratings Criteria", as
issuers rated 'BB-' and above are too far from default for a
credible default scenario analysis to be generated, and would
likely generate recovery ratings (RR) that are too high across all
instruments.
Where an RR is assigned, the generic approach reflects the relative
instrument rankings and their recoveries, as well as the higher
enterprise valuation of 'BB' ratings in a generic sense for the
most senior instruments.
Fitch classifies RHP's revolving credit facility and its senior
secured term loan as Category 1. Considering the IDR of 'BB-', the
Category 1 first lien senior secured debt is notched two levels to
'BB+'/'RR1' and the unsecured notes are notched zero levels to
'BB-'/'RR4'
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- A deteriorating economic environment, leading to a sharp
reduction in RHP's leisure and group business could lead to a
change in the outlook from positive to stable and in a more extreme
scenario, a negative outlook or downgrade;
- Fitch expectation for REIT leverage to sustain above 5.0x;
- OEG spinoff that results in higher leverage;
- Prolonged capital investment, with minimal return and thus
elevated leverage.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- Continued strength in booking window amid heightened economic
uncertainty, leading to increased confidence in issuer's REIT
leverage remaining below 4.5x;
- Unencumber remaining assets, including equity pledges on
subsidiaries;
- Sustained improvement in EBITDA margins.
Liquidity and Debt Structure
As of Dec. 31, 2024, RHP had $477.7 million in unrestricted cash
and an aggregate amount of $754.7 million available on its company
and OEG RCF. RHP's ability to demonstrate consistent access to
capital markets at sustainable rates from a multitude of sources
supports its solid balance sheet position.
Fitch views the replacement of secured debt with unsecured debt
positively as it improves the company's unsecured asset pool. This
pool includes four of their six largest hotels except Gaylord
Opryland and Gaylord Texan, the two largest hotels by EBITDA. Fitch
will consider future unencumbering of equity pledges to have a
positive impact on the company's unsecured credit profile.
Issuer Profile
RHP is a lodging and hospitality REIT specializing in upscale
convention center resorts and country music entertainment. It owns
six non-gaming convention center hotels, all managed by Marriott
International, with five under the Gaylord Hotels brand.
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
----------- ------ -------- -----
Ryman Hospitality
Properties, Inc. LT IDR BB- Affirmed BB-
RHP Hotel Properties,
L.P. LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed RR4 BB-
senior secured LT BB+ Affirmed RR1 BB+
SC HEALTHCARE: Petersen Gets Prelim. Okay to Tap Ch. 11 Plan Votes
------------------------------------------------------------------
Alex Wittenberg of Law360 reports that on Thursday, April 17, 2025,
a Delaware bankruptcy judge granted preliminary approval for
Petersen Health Care's Chapter 11 liquidation plan to be submitted
to creditors for a vote, following the skilled nursing facility
operator’s sale of the majority of its assets in recent months.
About Petersen Health Care Inc.
SC Healthcare Holding, LLC, et al., comprise one of the largest
nursing home operators in the United States and work in partnership
with physicians, skilled nurses, and other health care providers in
order to provide various healthcare and rehabilitation services for
elderly citizens in Illinois, Missouri, and Iowa.
SC Healthcare Holding, LLC, and its affiliates, including Petersen
Health Care, Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10443) on March
20, 2024. In the petition signed by David R. Campbell as authorized
signatory, SC Healthcare disclosed up to $100 million to $500
million in assets and $100 million to $500 million in liabilities.
Judge Hon. Thomas M Horan oversees the case.
Young Conaway Stargatt & Taylor, LLP, and Winston & Strawn LLP,
serve as the Debtors' legal counsel.
SILVER AIRWAYS: Airline at Risk of Permanent Closure
----------------------------------------------------
Jordan Simon of Men's Journal reports that Silver Airways, a
regional carrier based in Florida once known for connecting smaller
U.S. cities and offering flights to the Caribbean, is teetering on
the edge of closure due to mounting financial and legal troubles.
According to Aviation Source News, the airline has filed for
Chapter 11 bankruptcy after accumulating more than $500 million in
debt. However, the U.S. trustee overseeing the case has recommended
dismissal, citing the airline's restructuring plan as unworkable.
Continued losses, persistent negative cash flow, and the inability
to secure debtor-in-possession financing have cast serious doubt on
the airline’s viability.
Customers with reservations through August 2025 are facing
cancellations, and refund options remain unclear. In the event of
liquidation, passengers may struggle to recover their money, as
creditors will be prioritized. Staying informed through court
updates and considering travel insurance is strongly advised, the
report states.
Silver Airways is also dealing with outstanding debts. The airline
reportedly owes nearly $104,000 in fees to Anguilla’s airport,
while several other airports—including Tallahassee, Tampa, Key
West, and San Juan—are pursuing legal action over unpaid
passenger facility charges, placing further strain on key
partnerships. Service levels have sharply declined. In March 2025,
Silver abruptly suspended all flights to and from Orlando
International Airport, stranding travelers. Several routes,
including service to Dominica, have been cut, and operations in
various Florida cities have been scaled back, according to Men's
Journal.
About Silver Airways LLC
Silver Airways LLC is a regional U.S. airline operating flights
between gateways in Florida, the Southeast and The Bahamas. The
Silver Airways fleet is comprised of modern, state of the art
aircraft with reliable, fuel-efficient turbo-prop engines. In the
summer of 2018, Silver completed the acquisition of Seaborne
Airlines, a San Juan, Puerto Rico-based air carrier serving
destinations throughout Puerto Rico, the U.S. Virgin Islands, and
other countries in the Caribbean. Seaborne provides connections
throughout the Caribbean via the carrier's hub in San Juan, while
also serving as the most critical link between St. Croix and St.
Thomas with the carrier's seaplane operation.
Silver Airways LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-23623) on December
30, 2024. In the petition filed by Steven A. Rossum, as chief
executive officer, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
The case is assigned to Hon. Peter D Russin.
The Debtor's counsel is Brian P. Hall, Esq., at SMITH, GAMBRELL &
RUSSELL, LLP, in Atlanta, Georgia.
SILVERROCK DEVELOPMENT: Seeks to Extend Plan Exclusivity to Aug. 1
------------------------------------------------------------------
SilverRock Development Company, and 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 October 3, 2025, respectively.
The Debtors explain that they have retained Christopher Sontchi as
their Independent Manager. Under Mr. Sontchi's oversight, the
Debtors have recently, among other things obtained
debtor-in-possession financing, retained JLL to market the Project
Opportunity and have gotten bidding procedures approved. The
Debtors are currently in the process of marketing the Project
Opportunity, a process which is expected to take several more
months.
The Debtors claim that given the significant progress made by the
companies under Mr. Sontchi's stewardship, this extension request
is reasonable and is consistent with the efficient prosecution of
the chapter 11 cases. Granting the Motion will provide the Debtors
with additional time to complete a thorough marketing process, sell
the Project Opportunity, and confirm a chapter 11 plan for the
benefit of all stakeholders.
Consequently, the relief requested herein is necessary. Allowing
the Exclusivity Periods to lapse now would defeat the very purpose
of section 1121 and deprive the Debtors and their creditors of the
benefit of a meaningful and reasonable opportunity to negotiate and
confirm an optimal Chapter 11 Plan that maximizes the returns of
all constituencies to the estates.
The Debtors assert that Creditors will not be harmed by extending
exclusivity at this time. The Debtors intend to use the extended
Exclusive Periods to, in addition to marketing the project
opportunity, resolve potential preferential and/or fraudulent
transfers and work constructively with the Debtors' major
constituents to maximize recoveries for the Debtors, their estates,
and their creditors.
The Debtors further assert that denying the Motion will force the
to focus their efforts to file a chapter 11 plan to the detriment
of the sale process, their estates, and all stakeholders. Creditors
will not be prejudiced by an extension of the Exclusivity Periods.
Counsel to the Debtors:
ARMSTRONG TEASDALE LLP
Jonathan M. Stemerman, Esq.
Eric M. Sutty, Esq.
1007 North Market Street, Third Floor
Wilmington, Delaware 19801
Telephone: (302) 416-9670
Email: jstemerman@atllp.com
esutty@atllp.com
-and-
Victor A. Vilaplana, Esq.
823 La Jolla Rancho Rd.
La Jolla, CA 92037
Telephone: (619) 840-4130
Email: vavilaplana@g
-and-
Benjamin M. Carson, Esq.
5965 Village Way, STE E105
San Diego, CA 92130
Telephone: (858) 255-4529
Email: ben@benjamincarsonlaw.com
About SilverRock Development Company
SilverRock Development Company, LLC is a San Diego, Calif.-based
company primarily engaged in renting and leasing real estate
properties.
SilverRock filed Chapter 11 petition (Bankr. D. Del. Lead Case No.
24-11647) on August 5, 2024, with $100 million to $500 million in
both assets and liabilities. Robert S. Green, Jr., chief executive
officer, signed the petition.
Judge Mary F. Walrath handles the case.
The Debtor is represented by Jonathan M. Stemerman, Esq., at
Armstrong Teasdale.
SILVERSHORE CYPRESS: Seeks to Sell Queens Property at Auction
-------------------------------------------------------------
Silvershore Cypress LLC and its affiliate, Silvershore Properties
95 LLC, seek approval from the U.S. Bankruptcy Court for the
Eastern District of New York, to sell Property at Auction, free and
clear of liens, interests, and encumbrances.
The Debtors Property is located at 10-71 Cypress Avenue a/k/a 1708
Summerfield Street, Queens, New York.
Silvershore Cypress owns a tenant-in-common interest in a
mixed-use, multi-family apartment building located at 10-71 Cypress
Avenue a/k/a 1708 Summerfield Street, Queens NY. The Debtor owns
69.5 percent TIC interest in the Property.
The Debtor employs Greg Corbin, Northgate Real Estate Group, as its
real estate broker.
The Debtor proposes bid procedures for the sale of the Property in
which the bid deadline will be on June 20, 2025.
The Auction will be held on June 25, 2025 at 3:00 p.m. at Northgate
Real Estate Group, 1633 Broadway, 46th Floor, New York, New York
10016.
To participate in the bidding process, a Potential Bidder must
demonstrate to the satisfaction of the Debtors, in consultation
with the Broker and Lender.
The Sale of the Property shall be in its existing condition "as is,
where is, and with all faults" and specifically and expressly
without any warranties, representations, or guarantees, either
express or implied.
About Silvershore Cypress LLC
Silvershore Cypress owns a tenant-in-common interest in a
mixed-use, multi-family apartment building located at 10-71 Cypress
Avenue a/k/a 1708 Summerfield Street, Queens NY. The Debtor owns
69.5 percent TIC interest in the Property.
Silvershore Cypress LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
24-43223) on August 1, 2024, listing $1,000,001 to $10 million in
both assets and liabilities.
Judge Elizabeth S Stong presides over the case.
J Ted Donovan, Esq. at Goldberg Weprin Finkel Goldstein LLP
represents the Debtor as counsel.
SIZZLING PLATTER: Fitch Alters Outlook on B- LongTerm IDR to Stable
-------------------------------------------------------------------
Fitch Ratings has revised the Outlook on Sizzling Platter, LLC's
Long-Term Issuer-Default Rating (IDR) to Stable from Positive and
affirmed the IDR at 'B-'. Additionally, Fitch has removed
Sizzling's ratings from Under Criteria Observation (UCO).
The Outlook revision reflects Sizzling's heightened re-leveraging
risk following the announced acquisition by Bain Capital Private
Equity. The transaction is subject to customary closing conditions,
including final approval by franchisors and regulatory approvals.
Fitch will reassess the ratings following post-transaction close.
The 'B-' rating reflects Sizzling's position as a major franchisee
of the Little Caesars, Wingstop and Jamba Juice quick-service
restaurant chains. It also incorporates the company's modest scale
and reliance on Little Caesars for about 57% of revenue. Sizzling
exhibits positive same-store- sales (SSS) growth and improved
operating performance amid a challenging macroenvironment. EBITDAR
leverage was 2.9x as of the end of 2024 down from 3.5x in 2023,
primarily through EBITDA expansion.
Key Rating Drivers
Soundly Executed Growth Strategy: Over the last 24 months, Sizzling
expanded by acquiring 90 restaurants and building another 74 new
units, reaching 814 systemwide units by Dec. 31, 2024. The
expansion has been funded with a mix of internal cash flow
generation and capital contributions from shareholders. Systemwide
unit growth and high single-digit SSS growth, has boosted top-line
growth above 20% annually on average over the last four years.
Given its acquisitive growth strategy, Sizzling could pursue more
sizeable opportunistic acquisitions, potentially increasing
leverage, depending on the funding strategy and risk appetite.
Positive SSS Growth: Sizzling has generated 29 consecutive quarters
of positive SSS growth from its quick service restaurant (QSR)
business, excluding 1H20 during the peak and start of the pandemic.
The accelerated growth at Wingstop restaurants has been accretive
to consolidated performance, considering SSS growth of 18.3% in
fiscal 2023 and 19.9% in 2024, as taken from Wingstop's publicly
available disclosures. Fitch expects SSS growth to moderate toward
the low single-digit percent range from 2025, given the impact of
the current macroenvironment and tariff-related headwinds on
consumer discretionary spending.
Improved Profit Margins: The company's scalable business has
bolstered profit margins through price increases and new unit
growth leading to high average unit volumes (AUV). Strategic
pricing and labor efficiency measures have offset commodity and
labor inflation, resulting in gross margins improving by more than
130 basis points (bps) in fiscal 2024. Fitch expects EBITDA margins
to stabilize at around mid-11% in fiscal 2025, as further pricing
actions above total cost inflation are not anticipated, due to
macroeconomic headwinds, which are expected to continue impacting
traffic and result in softer pricing activity.
Leverage Expectations: Fitch believes Bain Capital Private Equity's
acquisition of Sizzling increases its re-leveraging risk, depending
on the funding strategy followed by its new financial sponsor. As
of 2024, Sizzling credit metrics were strong, with EBITDAR leverage
at 2.9x and a fixed-charge coverage ratio of 2.3x. This compares
with leverage in the high-4.0x YE fiscal 2023 and low-7.0x YE
fiscal 2022. Fitch may review the rating post-transaction when the
capital structure and growth strategy are clearer. UBS and
Jefferies are leading the committed financing to refinance
Sizzling's existing capital structure, pending closing.
Peer Analysis
Sizzling Platter's rating is three notches below Raising Cane's
Restaurants, LLC (BB-/Stable). Raising Cane's rating reflects the
company's good competitive position within the QSR industry
centered around a simple menu offering with good brand perception
that has driven share gains.
The company continues to expand and gain scale nationally with
units that generate high AUVs. The ratings are tempered by its
single-brand concept with narrow consumer appeal, which leaves the
company more vulnerable to brand-specific weakness, significant
free cash flow (FCF) deficits and increasing debt load fueled by
growth investments.
Key Assumptions
- Fitch's base case does not factor in the completion of the
acquisition nor its impact on the capital structure.
- Revenue increasing mid-single digit in fiscal 2025 supported by
low-to-mid-single digit unit growth and low single-digit SSS
growth.
- EBITDA margins to settle in the mid-11% area in 2025, as Fitch
does not expect pricing actions to outpace total cost inflation.
- Capex intensity of around 5% of revenues, driven by continued
investments in new openings. Fitch expects excess cash to be used
to fund merger & acquisition (M&A) activities, as the company
continues to prioritize growth.
- EBITDAR leverage in the low-3x region in fiscal 2025.
- Sizzling has fixed-rate notes due 2025 and a super-priority
first-lien revolver due 2025 with a floating-interest-rate
structure, which Fitch assumes will be refinanced.
- Management's strategy is focused on organic growth,
diversification and M&A. Fitch expects the company to remain
focused on aggressive growth in order to scale and diversify the
business
RATING SENSITIVITIES
Factors That Could, Individually Or Collectively, Lead To Negative
Rating Action/Downgrade
- Weaker than expected SSS trends, margin pressures and/or debt
funded acquisitions;
- EBITDAR leverage sustained above 6.0x;
- EBITDAR Fixed Charge Coverage below 1.0x.
Factors That Could, Individually Or Collectively, Lead To Positive
Rating Action/Upgrade
- Positive trends in SSS and unit growth with consistent positive
FCF generation;
- Sustained EBITDAR leverage below 5.0x, post-acquisition;
- Sustained EBITDAR Fixed Charge Coverage above 1.5x
- Successful refinancing of the 2025 debt maturities.
Liquidity and Debt Structure
Adequate Liquidity: Sizzling's liquidity as of Dec. 31, 2024,
consisted of about $27 million in cash and approximately $59
million of availability under its $80 million revolving credit
facility with $15 million in standby letters of credit extended.
Sizzling upsized its revolver commitment to $80 million from $65
million in October 2023. At the same time, existing shareholders
also contributed additional equity of $55 million to the company.
Proceeds were used to repay the outstanding borrowings under the
revolver and provide excess cash on the balance sheet. Fitch
expects the company will continue using internally generated funds
to acquire and open new stores.
The company's capital structure also consists of $350 million
outstanding in senior secured notes due in November 2025. The
company is assessing different alternatives to address upcoming
maturities and Fitch would expect to see concrete steps towards
refinancing during 1H25. The revolver and note are pari-passu in
terms of collateral, secured by a first lien on substantially all
assets and equity interests of the company. However, the revolver
benefits from super-priority status, receiving first order of
payment in the event of a default.
Issuer Profile
Based in Salt Lake City, Utah, Sizzling Platter, LLC (Sizzling) is
a multi-brand restaurant franchisee. The company operates within
brands such as Little Caesars, Wingstop, Dunkin' and Jersey Mike's
with a total of 814 restaurants as of 2024 fiscal year end.
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
----------- ------ -------- -----
Sizzling Platter, LLC LT IDR B- Affirmed B-
senior secured LT B- Affirmed RR4 B-
super senior LT BB- Affirmed RR1 BB-
SLATER PARK: Plan Exclusivity Period Extended to June 22
--------------------------------------------------------
Judge James R. Sacca of the U.S. Bankruptcy Court for the Northern
District of Georgia extended Slater Park, LLC and affiliates'
exclusive periods to file a plan of reorganization and obtain
acceptance thereof to June 22 and August 21, 2025, respectively.
As shared by Troubled Company Reporter, the Debtors claim that the
request for an extension will not unfairly prejudice or pressure
Debtors' creditors or grant Debtors any unfair bargaining leverage.
Debtors need creditor support to confirm any plan, so Debtors are
in no position to impose or pressure its creditors to accept
unwelcome plan terms. Debtors seek an extension of the Exclusivity
Periods to advance the case after resolution of the Lease Motion
and the negotiations with the Landlord.
The Debtors assert that termination of the current Exclusivity
Periods may engender duplicative expense and litigation associated
with multiple competing plans. Any litigation with respect to
competing plans and resulting administrative expenses will only
decrease recoveries to Debtors' creditors and significantly delay,
if not undermine entirely, the possibility of prompt confirmation
of a plan of reorganization.
The Debtors further assert that the requested extension of the
Exclusivity Periods will not prejudice the legitimate interests of
any party in interest in this case, given the consequences for
Debtors' estates if the relief requested herein is not granted and
the progress made to date. Rather, the extension will further
Debtors' efforts to preserve value and avoid unnecessary and
wasteful litigation.
About Slater Park
Slater Park, LLC, owns and operates two bars and interactive
amusements on the rooftop at the Premises that is commonly known as
Skyline Park in Atlanta, Ga.
Slater Park filed a Chapter 11 petition (Bankr. N.D. Ga. Case No.
24-21491) on Nov. 22, 2024, listing up to $10 million in both
assets and liabilities. Brett Hull-Ryde, chief executive officer,
signed the petition.
Judge James R. Sacca oversees the case.
The Debtor is represented by:
Ceci Christy, Esq.
William A. Rountree, Esq.
Rountree Leitman Klein & Geer, LLC
Tel: 404-584-1238
cchristy@rlkglaw.com
wrountree@rlkglaw.com
SLIM AND GOLDIE: L. Todd Budgen Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed L. Todd Budgen, Esq., a
practicing attorney in Longwood, Fla., as Subchapter V trustee for
Slim and Goldie, LLC.
Mr. Budgen will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Budgen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
L. Todd Budgen, Esq.
P.O. Box 520546
Longwood, FL 32752
Tel: (407) 232-9118
Email: Todd@C11Trustee.com
About Slim and Goldie
Slim and Goldie, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01633) on March 24,
2025, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Grace E. Robson presides over the case.
Jeffrey Ainsworth, Esq., at Bransonlaw PLLC represents the Debtor
as bankruptcy counsel.
SMOKECRAFT CLARENDON: Gets Extension to Access Cash Collateral
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland extended
Smokecraft Clarendon, LLC's authority to use cash collateral from
March 31 to April 30.
The sixth order approved the interim use of cash collateral to pay
the company's expenses in accordance with its budget.
As protection, Capital Bank, National Association will be granted
security interest in and replacement lien on all unencumbered
assets of the company and will continue to receive a monthly
payment of $1,500.
In addition, Capital Bank will receive a superpriority
administrative claim in case of any diminution in the value of its
collateral.
About Smokecraft Clarendon
Smokecraft Clarendon, LLC owns and operates a barbecue restaurant
in Arlington County, Va.
Smokecraft filed Chapter 11 petition (Bankr. D. Md. Case No.
24-13609) on April 29, 2024, listing $129,456 in total assets and
$1,379,956 in total liabilities. Andrew Darneille, manager of
Smokecraft, signed the petition.
Judge Maria Ellena Chavez-Ruark oversees the case.
The Debtor is represented by:
Maurice Belmont VerStandig, Esq.
The Verstandig Law Firm, LLC
Tel: 301-444-4600
Email: mac@mbvesq.com
SOLANO HOME: Seeks Cash Collateral Access Until June 20
-------------------------------------------------------
Solano Home Solutions, LLC asked the U.S. Bankruptcy Court for the
Eastern District of California, Sacramento, for authority to use
$9,537 in cash collateral from December 3 to June 20.
The Debtor's bankruptcy filing was prompted by a need to cure
property tax arrears, and the property in question is the subject
of ongoing state court litigation related to fraud and undisclosed
structural damage.
The Debtor argues that the use of cash collateral—primarily
rental income held in its DIP account with Wells Fargo—is
essential to maintaining operations and preserving the value of the
estate's assets.
The parties that assert interests in the cash collateral are John &
Carol Bender and San Joaquin County Tax Collector. The Benders'
$1.09 million claim is disputed.
The Debtor maintains that these creditors are adequately protected
by a significant equity cushion, as the total value of its assets,
including cash, receivables, and a $1.6 million legal claim, is
approximately $1.95 million. The business has no employees and is
wholly owned by Caroline Hegarty, who also manages its operations.
A hearing on the matter is set for May 20.
A copy of the motion is available at https://urlcurt.com/u?l=zbMxrc
from PacerMonitor.com.
About Solano Home Solutions
Solano Home Solutions LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No.
24-25470) on Dec. 3, 2024. In the petition filed by Caroline
Marie Hegarty, managing member, the Debtor disclosed total assets
of $1,011,090 and total liabilities of $1,207,009.
Bankruptcy Judge Christopher D. Jaime handles the case.
The Law Office of Peter G. Macaluso serves as the Debtor's counsel.
SPIRIT AIRLINES: Appoints New CEO After Chapter 11 Exit
-------------------------------------------------------
Mary Schlangenstein of Bloomberg News reports that Spirit Airlines
Inc. has named seasoned industry executive Dave Davis as its new
CEO and president, effective April 21, 2025 to lead the airline's
transition to a more premium model after emerging from bankruptcy.
Davis takes over from Ted Christie, who stepped down on April 7,
2025. He previously held the roles of president and CFO at Sun
Country Airlines Holdings Inc., a low-cost Minneapolis-based
carrier focused on leisure, charter, and cargo operations,
according to Bloomberg News.
The airline also announced new leadership appointments in its
network planning, pricing strategy, and communications departments,
the report states.
About Spirit Airlines
Spirit Airlines, Inc. (SAVE) is a low-fare carrier committed to
delivering the best value in the sky by offering an enhanced travel
experience with flexible, affordable options. Spirit serves
destinations throughout the United States, Latin America and the
Caribbean with its Fit Fleet, one of the youngest and most
fuel-efficient fleets in the U.S. On the Web:
http://wwww.spirit.com/
Spirit Airlines and its affiliates sought Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 24-11988) on Nov. 18, 2024, after
reaching terms of a pre-arranged plan with bondholders.
At the time of the filing, Spirit Airlines reported $1 billion to
$10 billion
in both assets and liabilities. Judge Sean H. Lane oversees the
case.
The Debtors tapped Davis Polk & Wardwell, LLP as legal counsel;
Alvarez & Marsal North America, LLC, as financial advisor; and
Perella Weinberg Partners LP as investment banker. Epiq Corporate
Restructuring, LLC, is the claims agent.
Paul Hastings, LLP and Ducera Partners, LLC serve as legal counsel
for the Ad Hoc Group of Convertible Noteholders.
Akin Gump Strauss Hauer & Feld, LLP and Evercore Group LLC
represent the Ad Hoc Group of Senior Secured Noteholders.
The official committee of unsecured creditors retained Willkie Farr
& Gallagher LLP as counsel.
Citigroup Global Markets, Inc., is serving as financial advisor and
Latham & Watkins LLP is serving as legal counsel to Frontier.
SPORTMAN'S SUPPLY: Case Summary & 18 Unsecured Creditors
--------------------------------------------------------
Debtor: Sportman's Supply Company
245 Freeport Road
Butler, PA 16002
Business Description: Sportman's Supply Co is a sporting goods
retailer based in Butler, Pennsylvania,
specializing in firearms, ammunition,
optics, and outdoor gear for hunting,
fishing, and camping. It operates a
physical storefront and offers products
through online platforms.
Chapter 11 Petition Date: April 16, 2025
Court: United States Bankruptcy Court
Western District of Pennsylvania
Case No.: 25-20976
Debtor's Counsel: Donald R. Calaiaro, Esq.
CALAIARO VALENCIK
555 Grant Street, Suite 300
Pittsburgh, PA 15219
Tel: 412-232-0930
Fax: 412-232-3858
E-mail: dcalaiaro@c-vlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Tyler J. Kovach in his capacity as
authorized representative of the Debtor.
A full-text copy of the petition, which includes a list of the
Debtor's 18 unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/MOJT7QI/Sportmans_Supply_Company__pawbke-25-20976__0001.0.pdf?mcid=tGE4TAMA
TEZCAT LLC: Jerrett McConnell Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 21 appointed Jerrett McConnell, Esq.,
at McConnell Law Group, P.A. as Subchapter V trustee for Tezcat,
LLC.
Mr. McConnell will be paid an hourly fee of $350 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. McConnell declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jerrett M. McConnell, Esq.
McConnell Law Group, P.A.
6100 Greenland Rd., Unit 603
Jacksonville, FL 32258
Phone: (904) 570-9180
Email: info@mcconnelllawgroup.com
About Tezcat LLC
Tezcat LLC, operating as Tepeyolot Cervecerias, is a family-owned
brewery and restaurant in Jacksonville, Fla., offering fresh
Mexican cuisine paired with craft lagers brewed on-site. In
addition to its dine-in and takeout options, the business provides
catering services for events like birthdays, weddings, and
corporate functions. It also offers online ordering and party
booking services.
Tezcat filed Chapter 11 petition (Bankr. M.D. Fla. Case No.
25-00803) on March 17, 2025, listing total assets of $22,708 and
total liabilities of $1,001,540.
Judge Jason A. Burgess handles the case.
The Debtor is represented by:
Buddy D. Ford, Esq.
Buddy D. Ford, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: (813) 877-4669
Fax: (813) 877-5543
All@tampaesq.com
THREE STAR: Richard Preston Cook Named Subchapter V Trustee
-----------------------------------------------------------
Brian Behr, the U.S. Bankruptcy Administrator for the Eastern
District of North Carolina, appointed Richard Preston Cook as
Subchapter V trustee for Three Star Trucking, LLC.
The Subchapter V trustee's hourly rate for this engagement is
$375.
Mr. Cook declared that he does not have an interest materially
adverse to the interest of Three Star Trucking's estate, creditors
or equity security holders.
About Three Star Trucking
Three Star Trucking, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-01027) on
November 2, 2022, listing up to $50,000 in estimated assets and up
to $1 million in estimated liabilities. Charles L. Stokes, Jr.,
manager of Three Star Trucking, signed the petition.
George Mason Oliver, Esq., at The Law Offices of George Oliver,
PLLC is the Debtor's legal counsel.
TILL LOGISTICS: Court OKs Truck Sale
------------------------------------
The U.S. Bankruptcy Court for the Southern District of California
has approved Till Logistics Corporation to sell Assets, free and
clear of liens, interests, and encumbrances.
The Court has authorized the Debtor to sell Truck 305 - 2017 White
Freightliner - VIN #3AKJGLDR8HSJB3305, 1,068,480 miles; and, Truck
368 – 2011 White Freightliner - VIN #1FUJGLDR0BSAZ6631, 1,025,712
miles.
The Debtor is ordered to pay Midstate Truck and Trailer Repair,
LLC, up to $7500 to repair Tili truck 153.
The Debtor is authorized to purchase an additional replacement
vehicle from the sale of Trucks 305 and Truck 368 after payment to
Midstate Truck and Trailer Repair, LLC, to repair Tili truck 153.
About Till Logistics Corporation
Tili Logistics Corporation is a trucking company in San Diego,
California.
Tili Logistics Corporation sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 24-02128) on June
8, 2024. In the petition signed by Sergio Casas-Silva, Jr., as
executive vice president, the Debtor estimated assets between
$100,000 and $500,000 and estimated liabilities between $1 million
and $10 million.
Bankruptcy Judge Christopher B. Latham oversees the case.
The Debtor is represented by Steven E. Cowen, Esq., at S.E. COWEN
LAW.
TISCHER CREEK: S&P Lowers 2018A Revenue Bonds Rating to 'BB-'
-------------------------------------------------------------
S&P Global Ratings lowered its long-term rating to 'BB-' from 'BB'
on the Duluth Housing and Redevelopment Authority, Minn.'s series
2018A charter school lease revenue refunding bonds, issued for
Tischer Creek Duluth Building Co. on behalf of Duluth Public
Schools Academy (DPSA; operating as Duluth Edison Charter School).
The outlook is stable.
S&P said, "The rating action reflects our view of the school's
persistent enrollment declines, which have led to compressed
operating margins and a trend of weakened liquidity that is
expected to persist at lower levels.
"We analyzed environmental, social, and governance factors and
consider them neutral in our credit rating analysis.
"The stable outlook reflects our view of the school's stable
authorizer relationship despite recent declines in enrollment and
weakening financial metrics. Further supporting the outlook is the
school's improved financial and risk management resulting in the
school being compliant with financial ratio covenants in fiscal
2024 and expectations for above-1x coverage and maintenance of
stable liquidity in fiscal 2025.
"We could consider a negative rating action over the outlook period
if the school's fiscal 2025 financial results lead to covenant
noncompliance, if DCOH declines materially, or if the school does
not make progress toward a full-term renewal at its next charter
contract reauthorization.
"We could consider a positive rating action if the school
stabilizes enrollment, and posts surpluses over time, such that it
organically grows its cash position."
TRUCK & TRAILER: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Truck & Trailer Leasing Avenue LLC
2525 New Lenox Road
Joliet, IL 60433
Business Description: Truck & Trailer specializes in long-distance
freight transportation services, operating
in Illinois.
Chapter 11 Petition Date: April 16, 2025
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 25-05906
Judge: Hon. Jacqueline P Cox
Debtor's Counsel: Saulius Modestas, Esq.
MODESTAS LAW OFFICES, P.C.
401 S. Frontage Rd.
Ste. C
Burr Ridge, IL 60527-7115
Tel: 312-251-4460
Fax: 312-277-2586
Email: smodestas@modestaslaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $10 million
The petition was signed by Sergiu Tintiuc as managing member.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/UJKGZDY/Truck__Trailer_Leasing_Avenue__ilnbke-25-05906__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Bank Midwest - NBH 2023 Freightliner $91,912
1111 Main St.
Kansas City, MO 64105
2. Bank Midwest - NBH 2023 Freightliner $91,912
1111 Main St.
Kansas City, MO 64105
3. Bank Midwest - NBH 2023 Freightliner $91,912
1111 Main St.
Kansas City, MO 64105
4. Bank Midwest - NBH 2023 Freightliner $91,912
1111 Main St.
Kansas City, MO 64105
5. Bank Midwest - NBH 2023 Freightliner $91,912
1111 Main St.
Kansas City, MO 64105
6. Bank Midwest - NBH 2023 Peterbilt 579 $89,540
1111 Main St.
Kansas City, MO 64105
7. Bank Midwest - NBH 2023 Peterbilt 579 $89,540
1111 Main St.
Kansas City, MO 64105
8. Bank Midwest - NBH 2023 Peterbilt 579 $89,540
1111 Main St.
Kansas City, MO 64105
9. Bank Midwest - NBH 2023 Peterbilt 579 $89,540
1111 Main St.
Kansas City, MO 64105
10. De Lage Landen Fin Svs 2024 International $89,002
1111 Old Eagle LT634
School Rd
Wayne, PA 19087
11. De Lage Landen Fin Svs 2024 International $89,002
1111 Old Eagle LT633
School Rd
Wayne, PA 19087
12. De Lage Landen Fin Svs 2024 International $89,002
1111 Old Eagle LT632
School Rd
Wayne, PA 19087
13. De Lage Landen Fin Svs 2024 International $89,002
1111 Old Eagle LT631
School Rd
Wayne, PA 19087
14. De Lage Landen Fin Svs 2024 International $89,002
1111 Old Eagle LT630
School Rd
Wayne, PA 19087
15. De Lage Landen Fin Svs 2024 International $89,002
1111 Old Eagle LT629
School Rd
Wayne, PA 19087
16. De Lage Landen Fin Svs 2024 International $89,002
1111 Old Eagle LT628
School Rd
Wayne, PA 19087
17. Flagstar Financial 2023 Freightliner $87,011
c/o Vedder Price PC Cascadia
222 N. Lasalle St.,
#2400
Chicago, IL 60601
18. Flagstar Financial 2023 Freightliner $87,011
c/o Vedder Price PC Cascadia
222 N. Lasalle St.,
#2400
Chicago, IL 60601
19. Flagstar Financial 2023 Frieghtliner $87,011
c/o Vedder Price PC Cascadia
222 N. Lasalle St.,
#2400
Chicago, IL 60601
20. Flagstar Financial 2023 Freightliner $87,011
c/o Vedder Price PC Cascadia
222 N. Lasalle St.,
#2400
Chicago, IL 60601
VACATION OWNERSHIP: Dawn Maguire Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 14 appointed Dawn Maguire, Esq., at
Guttilla Murphy Anderson, as Subchapter V trustee for Vacation
Ownership Consultants, LLC.
Ms. Maguire will be paid an hourly fee of $380 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Maguire declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Dawn Maguire, Esq.
10115 E. Bell Rd., Ste. 107 #498
Scottsdale, AZ 85260
Phone: (480) 304-8302
Fax: (480) 304-8301
Email: Trustee@MaguireLawAZ.com
About Vacation Ownership Consultants
Vacation Ownership Consultants, LLC filed Chapter 11 bankruptcy
petition (Bankr. D. Ariz. Case No. 25-02295) on March 19, 2025,
listing up to $50,000 in assets and between $500,001 and $1 million
in liabilities.
Judge Brenda K. Martin oversees the case.
The Debtor tapped Allan D. NewDelman, P.C. as legal counsel.
VILLAGE ROADSHOW: Asks Court Okay for Higher Stalking Horse Bid
---------------------------------------------------------------
Clara Geoghegan of Law360 Bankruptcy Authority reports that Village
Roadshow Entertainment Group has petitioned a Delaware bankruptcy
judge to approve a new stalking horse bidder in its Chapter 11
case, asserting that the $417.5 million bid for its film library is
superior to a prior offer.
About Village Roadshow Entertainment Group USA
Village Roadshow Entertainment Group USA Inc. and its affiliates
are a prominent independent producer and financier of major
Hollywood films, having produced over 100 successful movies since
1997. Their portfolio includes globally recognized blockbusters
such as "Joker," "The Great Gatsby," and the "Matrix" trilogy.
Before the WB Arbitration, which began in 2022, the Company had a
profitable and well-established co-production and co-financing
partnership with Warner Bros. Entertainment Inc. and its affiliates
("WB"), resulting in many successful projects. The Company's most
valuable assets include its Film Library and Derivative Rights,
stemming from its extensive and enduring film industry presence.
Village Roadshow Entertainment Group USA Inc. and its affiliates
sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
D. Del. Lead Case No. 25-10475) on March 17, 2025. In the petitions
signed by Keith Maib, chief restructuring officer, the Debtors
disclosed up to $500 million in estimated assets and up to $1
billion in estimated liabilities.
Honorable Bankruptcy Judge Thomas M. Horan handles the cases.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP as local
counsel; Sheppard, Mullin, Richter & Hampton LLP as bankruptcy
counsel; Kirkland & Ellis LLP as special litigation counsel;
Accordion Partners, LLC as financial and restructuring advisor; and
Solic Capital Advisors, LLC as investment banker. Kurtzman Carson
Consultants, LLC, doing business as Verita Global, is the Debtors'
claims and noticing agent and administrative advisor.
VIRGOLINO DE OLIVEIRA: Chapter 15 Case Summary
----------------------------------------------
Lead Debtor: Virgolino de Oliveira S.A. Acucar e Alcool
Grupo Virgolino de Oliveira
Fazenda Santo Antonio, S/N
Municipio de Ariranha
Estado de Sao Paulo 15.960-000
Brazil
Business Description: Virgolino de Oliveira S.A. – Acucar e
Alcool is a Brazilian agribusiness
company engaged in the production of raw
sugar, ethanol, and byproducts such as
molasses, fusel oil, vinasse, bagasse,
and electricity. It operates several
sugarcane processing facilities in São
Paulo state.
Foreign Proceeding: Receivership Process of Virgolino de
Oliveira S.A. Acucar e Alcool – Em
Recuperacao Judicial [In Receivership],
et al., in progress with the Sole Bench
of the Judicial District of Santa
Adelia, State of Sao Paulo, in the court
records number 1000626-29.2021.8.26.0531
Chapter 15 Petition Date: April 9, 2025
Court: United States Bankruptcy Court
Southern District of New York
Nine affiliates that concurrently filed voluntary petitions for
relief under Chapter 15 of the Bankruptcy Code:
Debtor Case No.
------ --------
Virgolino de Oliveira S.A. Acucar e Alcool (Lead) 25-10696
Agropecuaria Nossa Senhora do Carmo S.A. 25-10698
Acu-careira Virgolino de Oliveira S.A. 25-10699
Agropecuaria Terras Novas S.A. 25-10700
Usina Catanduva S.A. Acucar e Alcool 25-10701
RO Servicos Agrcolas S.A. 25-10702
Estate of Carmen Ruete de Oliveira 25-10703
Carmen Aparecida Ruete de Oliveira 25-10704
Virgolino de Oliveira Filho 25-10705
Judge: Hon. Martin Glenn
Foreign Representative: Marcos Roberto dos Santos
c/o Grupo Virgolino de Oliveira
Brazil
Foreign
Representative's
Counsel: Howard P. Magaliff, Esq.
R3M LAW, LLP
6 East 43rd Street
21st Floor
New York, NY 10017
Tel: 646-453-7851
E-mail: hmagaliff@r3mlaw.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 petition is available for free
on PacerMonitor at:
https://www.pacermonitor.com/view/XGCSTPY/Virgolino_de_Oliveira_SA_Acucar__nysbke-25-10696__0001.0.pdf?mcid=tGE4TAMA
VIRIDOS INC: Seeks Chapter 11 Bankruptcy in Delaware
----------------------------------------------------
On April 14, 2025, Viridos Inc. filed Chapter 11 protection in
the U.S. Bankruptcy Court for the District of Delaware. 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 Viridos Inc.
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.
Viridos Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 25-10697) on April 14, 2025. In its
petition, the Debtor reports estimated assets between $10 million
and $50 million and estimated liabilities between $1 million and
$10 million.
Honorable Bankruptcy Judge Craig T. Goldblatt handles the case.
The Debtor is represented by Morgan L. Patterson, Esq. at WOMBLE
BOND DICKERSON (US) LLP. ROCK CREEK ADVISORS, LLC is the Debtor's
Financial Consultant. STRETTO is the Debtor's Claims, Noticing,
Solicitation Agent and Administrative Advisor.
VISTA PARTNERS: Court OKs Newood Assets Sale to Newood Sustainable
------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon has granted
Vista Partners Inc. to sell Newood Assets, free and clear of liens,
interests, and encumbrances.
The Court has granted the Debtor to sell its Newood Mfg. division
that is comprised of all payment rights, accounts receivable, open
orders and all personal and intellectual property (Newood Assets)
to Newood Sustainable Design (NSD).
Contingent upon the closing of the Sale, the remaining balance on
Dorman Construction's claim in the amount of $309,395.85 shall be
assigned to NSD. Dorman's claim is secured by the equipment that is
being sold and transferred to NSD.
The Court also held that the Debtor shall sublet a portion of the
Premises to continue its craft wood operations for approximately
six months for $10,000.00 per month or other amount agreed to
between the Debtor and NSD.
About Vista Partners Inc.
Vista Partners Inc., doing business as Petersen - Arne, PA
Distribution, Accent Design, Leisure Arts, and Newood MFG, provides
a comprehensive multi-service solution for the sewing and crafting
industry's distribution, shipping, and fulfillment needs. Founded
in 1959, the Company is the only major craft distributor on the
West Coast, perfectly positioned to distribute product originating
from a global market to a wide variety of retailers. Offering a
diverse selection of products, PA Distribution covers everything
from essential creative supplies to trending seasonal and holiday
items. The Company's services are tailored to meet the unique
demands of the crafting and sewing industry, ensuring reliable
inventory management and supply chain solutions.
Vista Partners Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ore. Case No. 25-60597) on March 5,
2025. In its petition, the Debtor reports total assets of
$35,932,947 and total liabilities of $3,651,251.
Honorable Bankruptcy Judge Thomas M. Renn handles the case.
The Debtor is represented by Joseph A.G. Sakay, Esq., at Buchalter,
A Professional Corp.
VISTRA CORP: Fitch Hikes LongTerm IDR to 'BB+', Outlook Stable
--------------------------------------------------------------
Fitch Ratings has upgraded the Long-Term Issuer Default Ratings
(IDR) of Vistra Corp. and Vistra Operations Company, LLC (Vistra
Ops) to 'BB+' from 'BB'. The Rating Outlook is Stable. Fitch has
also upgraded Vistra Ops' senior unsecured debt to 'BB+' with a
Recovery Rating of 'RR4' from 'BB'/'RR4' and Vistra's preferred
stock to 'BB-'/'RR6' from 'B+'/'RR6', and affirmed Vistra Ops'
senior secured debt at 'BBB-'/'RR1'. Fitch has also affirmed the
rating for the Pre-Capitalized Trust Securities (P-Caps) issued by
Palomino Funding Trust I at 'BBB-'/'RR1'.
Vistra's upgrade reflects Fitch's expectation that gross EBITDA
leverage will stay within 3.0x-3.5x from 2025 to 2027, driven by
higher wholesale generation EBITDA and strong retail performance. A
highly hedged generation portfolio in 2025-2026, improving Texas
power prices, and likely strong PJM capacity auction results should
support wholesale EBITDA growth. Robust FCF and the company's
capital allocation policy will determine future rating actions.
Key Rating Drivers
Steady Improvement in Leverage: Vistra's gross EBITDA leverage
improved to 3.3x at the end of 2024, from 3.8x in 2023. Fitch gross
debt calculation includes non-recourse debt at Vistra Zero, forward
repurchase obligation for acquisition of Vistra Vision's minority
interest and reflects 50% equity credit to preferred stock. Fitch
expects gross leverage to improve further given favorable power
demand/supply dynamics. Vistra has hedged close to 100% of its 2025
and 80% of its 2026 expected generation as of November 2024.
Management expects to generate adjusted EBITDA of $5.5 billion to
$6.1 billion in 2025 and over $6 billion in 2026.
Capital Allocation is Key: Fitch expects Vistra to generate between
$1.5 billion and $2.5 billion of FCF annually over 2025-2027.
Fitch's FCF calculation includes dividends paid to shareholders and
capex, including growth capex for already announced new renewable
generation and gas fleet uprates in Texas, but excluding two
natural gas projects in Texas that Vistra is evaluating and
additional brownfield opportunities. The substantial FCF affords
management flexibility for capital allocation, even after
completing $2 billion share repurchases over 2025-2026. Fitch
expects management to pursue a balanced capital allocation policy
that continues to target net leverage below 3.0x.
Tightening Power Markets: Vistra is well positioned to benefit from
strong market fundamentals in its largest markets, ERCOT and PJM,
as both are experiencing high power demand. ERCOT's peak power
demand outlook and forward power curves have strengthened. In PJM,
the next capacity auction is scheduled for July. PJM is awaiting
approval of its proposed collar of $175/MW-day to $325/MW-day for
the next two auctions, which compares with last auction results of
$269.92/MW-day for the 2025/2026 delivery year.
Favorable Acquisitions: Fitch views Vistra's 2024 acquisition of
Energy Harbor (EH) as positive for its credit profile. EH's four
nuclear units across three sites located in PJM provides
geographical diversification, while adding strong baseload assets
to Vistra's generation portfolio. Vistra's nuclear generation fleet
benefits from production tax credits under the Inflation Reduction
Act, providing stability to its EBITDA. In addition, Vistra closed
on its acquisition of the 15% Vistra Vision minority interest in
2024, simplifying its business model.
Strong Retail Platform: Vistra's retail business provides revenue
stability with relatively high renewal rates and stable margins.
Retail margins in the commercial and industrial segments generally
remain range-bound during commodity cycles, and residential retail
margins are usually countercyclical, given the length and
stickiness of the customer contracts. TXU Energy Company LLC,
Vistra's largest retail electricity operation in Texas, has
demonstrated strong brand recognition, tailored customer offerings
and effective customer service, which are driving high customer
retention and growth.
Mitigation of Extreme Weather Risks: Vistra has addressed gas
deliverability and fuel handling issues, which contributed to
sizable financial losses during winter storm Uri in February 2021.
Measures include weatherizing its generation fleet, enhancing coal
fuel handling, installing dual fuel capabilities at gas steam
units, increasing fuel oil inventory at dual fuel sites,
contracting additional natural gas storage, and maintaining greater
generation length during peak periods. Its fleet demonstrated
resilience during recent events such as winter storms Elliot and
Heather in December 2022 and January 2024, respectively.
Peer Analysis
Vistra is well positioned relative to NRG Energy (BB+/Stable) and
Calpine Corporation (B+/Rating Watch Positive) in terms of size,
scale and geographic and fuel diversity. Vistra's 41GW of
generation fleet is well diversified by fuel, compared with
Calpine's 28 GW, natural gas-heavy portfolio and NRG's 13GW
generation fleet. However, Vistra's portfolio is less diversified
geographically, with more than 60% of its consolidated EBITDA
coming from operations in Texas, while Calpine's fleet is more
geographically diversified across PJM, Texas and California.
NRG's business profile benefits from ownership of Vivint, a home
security business, which diversifies its revenue stream compared to
Vistra. Like Vistra, NRG benefits from its ownership of large and
well-entrenched retail electricity businesses in Texas. However,
unlike Vistra, NRG has fewer generation assets and serves its
retail load from sources other than its own generation. The
generation fleet for both NRG and Calpine bears less operational
and environmental risk compared to Vistra's portfolio which also
has nuclear and coal generation assets.
Fitch projects Vistra's leverage to remain within the 3.0x-3.5x
range in 2025-2027, which compares favorably to Calpine's
pre-acquisition leverage of around 5.0x and is comparable to NRG's
forecast leverage of 3.0x -3.5x.
Key Assumptions
- Hedged generation in 2025-2026 per management's guidance;
- Power prices in key markets such as PJM and ERCOT comparable to
current forward curves;
- Annual retail load of 135 TWh to 140 TWh;
- Capacity revenues per past auction results and/or future PJM
capacity auctions in line with the last auction results;
- Total capex including nuclear fuel of about $5.8 billion over
2025-2027;
- Share repurchases of approximately $3.0 billion over 2025-2027;
- Common dividends of about $300 million annually;
- Refinancing of existing debt only, with no additional debt
issuances other than project financing.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Gross debt/EBITDA above 3.5x on a sustained basis;
- Weaker power demand and/or higher than expected supply depressing
wholesale power prices and capacity auction outcomes in its core
regions;
- Unfavorable changes in regulatory constructs and markets;
- An aggressive growth strategy that diverts a significant
proportion of FCF toward merchant generation assets and/or
overpriced retail acquisitions.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Demonstrated EBITDA leverage lower than 3.0x on a sustainable
basis coupled with a track record of stable EBITDA generation and
continued emphasis on an integrated wholesale-retail platform.
Liquidity and Debt Structure
In Fitch's view, Vistra has adequate liquidity. As of Dec. 31,
2024, the company had approximately $4.1 billion of liquidity
available consisting of $1.2 billion of cash on hand and around
$2.9 billion available under various revolving facilities. There
were no short-term borrowings outstanding under the
commodity-linked facility and the revolving credit facility as of
Dec. 31, 2024. Vistra's revolving credit facility agreement has a
$3.44 billion commitment expiring in October 2029.
Vistra Ops' first-lien secured debt receives an upstream guarantee
from the asset subsidiaries under Vistra Ops, which consists of a
substantial portion of property, assets and rights owned by Vistra
Ops. The secured notes have a security fall away provision wherein
the collateral securing the notes will be released if Vistra Ops'
senior unsecured notes obtain an investment-grade rating from two
out of the three rating agencies. The fall away provision will be
reversed if the investment-grade ratings for the senior unsecured
notes are withdrawn or downgraded below investment grade.
Issuer Profile
Vistra is the largest independent power generator in the U.S. with
approximately 41 GW of capacity. Vistra Retail is one of the
largest retail providers in the country with roughly 136 TWHs of
load and approximately 5 million customers.
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
----------- ------ -------- -----
Vistra Corp. LT IDR BB+ Upgrade BB
Preferred LT BB- Upgrade RR6 B+
Palomino Funding
Trust I
senior secured LT BBB- Affirmed RR1 BBB-
Vistra Operations
Company, LLC LT IDR BB+ Upgrade BB
senior secured LT BBB- Affirmed RR1 BBB-
senior
unsecured LT BB+ Upgrade RR4 BB
WASKOM BROWN: Seeks Subchapter V Bankruptcy in Louisiana
--------------------------------------------------------
On April 15, 2025, Waskom Brown & Associates LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the Western District
of Louisiana. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will not be
available to unsecured creditors.
About Waskom Brown & Associates LLC
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.
Waskom Brown & Associates LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. La. Case No. 25-80219) on April
15, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Stephen D. Wheelis handles the case.
The Debtor is represented by Bradley L. Drell, Esq. at GOLD, WEEMS,
BRUSER, SUES & RUNDELL, A PLC.
WATER'S EDGE: Seeks to Extend Plan Exclusivity to June 4
--------------------------------------------------------
Water's Edge Limited Partnership asked the U.S. Bankruptcy Court
for the District of Massachusetts to extend its exclusivity periods
to file a plan of reorganization and obtain acceptance thereof to
June 4 and August 4, 2025, respectively.
The Debtor explains that it has made substantial progress with
respect to the formulation of its plan of reorganization. The
Debtor's revenues from the rent collected have been as projected
and its expenses have been with few exceptions at or below
projections, and are below budget on a cumulative basis.
The Debtor claim that it has satisfied its reporting and other
obligations with the Office of the United States Trustee. The
Debtor has filed all of its required monthly operating reports and
has otherwise responded promptly to requests for information from
the United States Trustee.
This motion constitutes the first request for an extension of the
exclusivity period.
Water's Edge Limited Partnership is represented by:
Kathleen R. Cruickshank, Esq.
MURPHY & KING
Professional Corporation
28 State Street, Suite 3101
Boston, MA 02109
Tel: (617) 423-0400
About Water's Edge Limited Partnership
Water's Edge Limited Partnership is primarily engaged in renting
and leasing real estate properties.
Water's Edge Limited Partnership sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 24-12445) on
December 5, 2024. In the petition filed by Evelyn M. Carabetta,
authorized representative, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Christopher J. Panos handles the case.
The Debtor tapped David Frye, Esq., at Russo, Frye & Associates,
LLP as counsel and Verdolino & Lowey, PC as financial advisor.
WELLPATH HOLDINGS: PSOIX Virtually Writes Off $150,000 Loan
-----------------------------------------------------------
The Palmer Square Opportunistic Income Fund has marked its $150,000
loan extended to Wellpath Holdings, Inc. to market at $2,100 or 1%
of the outstanding amount, according to PSOIX's Form N-CSR for the
fiscal year ended July 31, 2024, filed with the U.S. Securities and
Exchange Commission.
PSOIX is a participant in a Loan to Wellpath Holdings, Inc. The
loan accrues interest at a rate of 11.510% (6-Month Term SOFR+725
basis points) per annum. The loan matures on June 9, 2025.
PSOIX was organized as a Delaware statutory trust on May 1, 2014,
and is registered as a non-diversified, closed-end management
investment company under the Investment Company Act of 1940, as
amended. Shares of the Fund are being offered on a continuous
basis.
PSOIX is an investment company and accordingly follows the
investment company accounting and reporting guidance of the
Financial Accounting Standards Board (FASB) Accounting Standard
Codification Topic 946 "Financial Services—Investment
Companies".
PSOIX values equity securities at the last reported sale price on
the principal exchange or in the principal over the counter market
in which such securities are traded, as of the close of regular
trading on the NYSE on the day the securities are being valued or,
if the last-quoted sales price is not readily available, the
securities will be valued at the last bid or the mean between the
last available bid and ask price.
PSOIX is led by Jeffrey D. Fox as president and principal executive
officer and Stacy Brice Chief Compliance Officer and Legal
Counsel.
The Fund can be reached through:
Stacy Brice
1900 Shawnee Mission Parkway Suite 315
Mission Woods, KS 66205
Telephone: (816) 994-3200
About Wellpath Holdings, Inc.
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: Secures UCC Support for Amended Ch. 11 Plan
--------------------------------------------------------------
Wellpath and certain of its affiliates, the nation's leader in
providing compassionate medical healthcare to vulnerable patients
in challenging clinical environments, announced on April 15, 2025,
that it has reached a global settlement with the Statutory
Unsecured Claimholders' Committee and its Ad Hoc Lender Group on a
consensual Plan of Reorganization.
Following productive engagement with the Ad Hoc Lender Group and
the Committee, Wellpath will file an amended Plan consistent with
the global settlement. The agreement and amended Plan resolve the
Committee's opposition to the Plan and pending settlement between
Wellpath and its existing financial sponsor. Accordingly, the
Committee is now encouraging all general unsecured creditors to
vote in favor of the amended plan ahead of the April 22, 2025
voting deadline.
"We have worked extensively alongside our lenders and the Committee
to develop a Plan that provides the best outcome for all
stakeholders," said Ben Slocum, Chief Executive Officer of
Wellpath. "We are grateful to the parties for their cooperation,
which has allowed us to reach this milestone and move forward. We
are nearing the finish line and look forward to emerging from this
process in the best position possible to fulfill our mission. As we
take these final steps, we will continue prioritizing our clients
and patients, as we meet our obligations to our partners and
continue to put patient care first."
The settlement clears the path for Wellpath's amended Plan to be
heard by the Court at the Confirmation Hearing on April 30, 2025,
supported by the Company's major stakeholders.
Upon confirmation and effectiveness of the plan, Wellpath will
formally complete its Chapter 11 process with a strengthened
financial foundation and significantly less debt, which will
position the Company for long-term success.
McDermott Will & Emery is Wellpath's legal counsel, Lazard and MTS
Health Partners are its investment bankers, and FTI Consulting is
its restructuring advisor.
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.
WIN PRODUCTIONS: Plan Exclusivity Period Extended to May 9
----------------------------------------------------------
Judge Mary P. Gorman of the U.S. Bankruptcy Court for the Central
District of Illinois extended Win Productions, LLC's exclusive
periods to file disclosure statement and plan to May 9, 2025.
As shared by Troubled Company Reporter, the Debtor explains that
since the filing, it has been actively seeking to complete sales of
real estate and personal property, and complete the liquidation of
property in its case.
The Debtor claims that it had anticipated filing its Liquidating
Plan of Reorganization by this date, but due to preparation for
such sales which are ongoing and yet pending completion, believes
that information from final or anticipated sales is needed to be
provide meaningful information to creditors as to amounts to be
distributed, were a liquidating plan to be filed.
In addition, the Debtor believes that due to the nature of the
liquidating plan to be proposed, that the plan can include adequate
information, among other things, as to the background of the
Debtor, the assets to be liquidated, and the proposed distribution
to creditors.
Win Productions, LLC is represented by:
Jeana K. Reinbold, Esq.
SGRO, HANRAHAN, DURR, RABIN & REINBOLD, LLP
1119 S. 6th Street
Springfield, IL 62703
Tel: (217) 789-1200
E-mail: jeana@casevista.com
About Win Productions
Win Productions, LLC, filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
24-70901) on Nov. 9, 2024, listing $1 million to $10 million in
assets and $10 million to $50 million in liabilities. The petition
was signed by Wyatt Bradshaw as authorized manager.
Judge Mary P. Gorman presides over the case.
Jeana K. Reinbold, Esq., at Sgro, Hanrahan, Durr, Rabin & Reinbold,
LLP, is the Debtor's counsel.
WOLYNIEC CONSTRUCTION: Gets Interim OK to Use Cash Collateral
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Pennsylvania
granted Wolyniec Construction, Inc.'s motion to use cash
collateral.
The interim order authorized the company to utilize cash collateral
to pay its expenses until the date of the final hearing or until
the order becomes final if no objections are filed.
A final hearing on the motion will be held on May 1.
Citizens and Northern Bank, Great Midwest Insurance Co. and the
U.S. Small Business Administration were granted replacement liens
on the company's post-petition cash collateral consisting of
receivables, cash, and the proceeds thereof, and on all assets of
the company similar to their pre-bankruptcy collateral.
In the event that the replacement liens are not enough to protect
secured creditors, the secured creditors will have superpriority
administrative claims.
About Wolyniec Construction Inc.
Wolyniec Construction Inc. is a construction company based in
Williamsport, Pennsylvania.
Wolyniec Construction sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Pa. Case No. 25-00881) on March 31,
2025. In its petition, the Debtor reported between $1 million and
$10 million in both assets and liabilities.
The Debtor is represented by:
Robert E. Chernicoff, Esq.
Cunningham And Chernicoff PC
Tel: 717-238-6570
Email: rec@cclawpc.com
WYNN TEC: Jill Durkin of Durkin Law Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Jill Durkin, Esq.,
at Durkin Law, LLC as Subchapter V trustee for Wynn Tec Inc.
Ms. Durkin will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Durkin declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jill E. Durkin, Esq.
Durkin Law, LLC
401 Marshbrook Road
Factoryville, PA 18419
Phone number: (570) 881-4158
Email: jilldurkinesq@gmail.com
About Wynn Tec Inc.
Wynn Tec Inc. is a small business corporation based in Loganton,
Pa.
Wynn Tec 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.
XRC LLC: Gets Final OK to Use Cash Collateral
---------------------------------------------
XRC LLC received final approval from the U.S. Bankruptcy Court for
the Middle District of Florida, Orlando Division, to use cash
collateral.
All prior interim orders authorizing cash collateral use were
deemed final.
About XRC LLC
XRC, LLC offers residential and commercial roofing services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-05911) on October 31,
2024. In the petition signed by Matthew P. Appell, managing member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Grace E. Robson oversees the case.
The Debtor is represented by:
Justin M. Luna, Esq.
Latham, Luna, Eden & Beaudine, LLP
Tel: 407-481-5800
Email: jluna@lathamluna.com
ZAYO GROUP: In Debt Extension Talks with Creditors
--------------------------------------------------
Reshmi Basu of Bloomberg News reports that Zayo Group Holdings
Inc., a fiber-network provider, is holding confidential discussions
with a steering committee of lenders to modify and extend its
existing debt, according to people with knowledge of the matter.
The negotiations, supported by advisers Gibson Dunn & Crutcher and
Houlihan Lokey, also cover financing for Zayo's $4.25 billion
acquisition of Crown Castle's fiber assets, announced last March
2025, according to Bloomberg News.
Spokespersons for Zayo and Houlihan declined to comment, while
Gibson Dunn did not respond to inquiries.
About Zayo Holdings Inc.
Zayo Group is a privately held company headquartered in Boulder,
Colorado, with European headquarters in London, England. The
company provides communications infrastructure services.
The Troubled Company Reporter reported on May 21, 2024, that S&P
Global Ratings affirmed all its ratings on U.S.-based fiber
infrastructure provider Zayo Group Holdings Inc. (Zayo), including
the 'B-' issuer-credit rating.
[] G.W. Werkheiser Joins Dorsey in NY & DE Bankruptcy Group
-----------------------------------------------------------
Gregory W. Werkheiser has joined Dorsey & Whitney LLP as Of Counsel
in the Bankruptcy & Financial Restructuring group in Delaware and
New York, the international law firm announced on April 16, 2025.
Greg comes to Dorsey from the U.S. Department of Justice, where for
the last two years, he served as a trial attorney in the Commercial
Litigation Branch, Corporate/Financial Litigation Group. Prior to
his government service, for over two decades, Greg focused his
practice on business bankruptcy, restructuring, and related
insolvency litigation as a member of a leading Delaware law firm
and another AmLaw 200 business law firm.
Gregory W. Werkheiser has joined Dorsey & Whitney LLP as Of Counsel
in the Bankruptcy & Financial Restructuring group in Delaware and
New York.
Greg has extensive experience representing distressed businesses,
lenders, creditors, and other stakeholders in complex bankruptcies
and out-of-court restructurings. Greg has appeared on behalf of
clients in federal courts throughout the United States on a range
of bankruptcy and related commercial litigation matters. His
practice spans a multitude of industries such as healthcare,
energy, retail, manufacturing, pharmaceuticals, pulp and paper,
franchising, restaurants, commercial real estate, regulated
cannabis, CBD and hemp, insurance, shipping, construction,
broadcast media, and performance rights management.
Greg received his J.D. from Widener University, Delaware Law
School, and his B.S. in Finance from Pennsylvania State
University.
"We are excited to welcome Greg to our Bankruptcy & Financial
Restructuring team and the Delaware office. His depth of experience
representing financially distressed companies and significant
creditors for over 25 years in private practice and his more recent
experiences within the Department of Justice will serve our clients
well," said Eric Lopez Schnabel, Delaware Office Head and Finance &
Restructuring Practice Group Co-Leader for Dorsey.
"Dorsey has a strong and long-term presence in the Delaware
bankruptcy practice as well as a robust national platform," said
Greg Werkheiser. "I look forward to contributing to Dorsey's
outstanding team and to serving our clients."
About Dorsey & Whitney LLP
Clients have relied on Dorsey as a valued business partner since
1912. With locations across the United States and in Canada,
Europe, and the Asia-Pacific region, Dorsey provides
results-oriented, grounded counsel for its clients' legal and
business needs. Dorsey represents a number of the world's most
successful companies from a wide range of industries, including
banking & financial institutions; development & infrastructure;
energy & natural resources; food, beverage & agribusiness;
healthcare & life sciences; and technology.
[] LegalShield Warns of Summer Bankruptcy Surge
-----------------------------------------------
Bankruptcy inquiries surged in the first quarter to their highest
level since early 2020, signaling a potential summer wave of
filings, LegalShield reported on April 16, 2025. The legal service
provider's data, historically a leading indicator of bankruptcy and
other consumer financial trends, suggests record consumer debt and
new tariffs could push financially strained households past their
breaking point.
Bankruptcy Index:
"Bankruptcy inquiries hit the highest we've seen since early 2020,
just before Americans' checkbooks were boosted by COVID checks from
the government," said Matt Layton, LegalShield senior vice
president of consumer analytics. "When you combine record debt,
rising delinquencies, and prolonged financial stress, topped by
price pressures driven by tariff uncertainty, the risk of a summer
surge in bankruptcy filings becomes very real."
Historically LegalShield's Bankruptcy Index is a leading indicator
of actual bankruptcy filings by two quarters.
The bankruptcy warning signs come amid a third straight quarter of
elevated consumer stress measured by LegalShield's Consumer Stress
Legal Index (CSLI), pointing to a heightened financial strain that
has become a "new normal" for American households.
The CSLI has remained elevated since a spike in July of 2024,
leveling off slightly to close Q1 2025 at 65.3, down from 67.3 at
the end of 2024. The decline was driven by a significant drop in
consumer finance inquiries amidst tax refund season and relatively
strong employment numbers, which may be masking greater concerns as
bankruptcy and foreclosure inquiries increased before tariff
announcements sent the markets into turmoil.
Why it matters: The CSLI, based on over 35 million legal service
requests from LegalShield members, offers a unique, real-time view
into American households' financial well-being.
Many American households may be poised for a breaking point in the
first half of 2025 as they deal with new tariffs, rising prices,
increased debt and sustained elevated interest rates. U.S.
bankruptcy filings surged 14.2% year-over-year by the end of 2024,
according to the U.S. Courts, and LegalShield data indicates
filings may continue to rise.
Key Findings:
1. Bankruptcy Risk Rising Quickly
-- Index: 36.4 (up from 33.3 in Q4; 30.0 in Q1 2024)
-- Insight: Consumers are buried by record debt. The Federal
Reserve Bank of New York reported that the share of households 90+
days late on credit cards and car loans hit a 14-year high at the
end of 2024, and delinquencies are still climbing. Credit card
balances hit a record high of $1.21 trillion.
2. Mortgage Pressure Intensifying
-- Foreclosure Index: 41.3 (up from 40.1 in Q4; 36.2 in Q1 2024)
-- Insight: Elevated mortgage rates and affordability constraints
are stressing homeowners and freezing inventory.
3. Consumer Finance Concerns Ease--For Now
-- Consumer Finance Index: 97.9 (down from 108.5 in Q4; 99.7 in Q1
2024)
-- Insight: Tax refunds and strong job growth gave consumers a
temporary cushion--but risks remain as tariff-driven price
increases are expected.
4. Housing Market Signals Softness
-- Housing Construction Index: 114.1 (down from 118.4 in Q4; 115.3
YoY)
-- Housing Sales Index: 94.1 (down from 97.9 in Q4; slightly up
from 92.3 YoY)
-- Insight: Higher material costs driven by tariffs and elevated
mortgage rates are dampening both buyer interest and builder
activity. Housing starts are a leading indicator of broader
economic activity. Reduced residential construction not only limits
future housing supply, putting upward pressure on home prices, but
also weakens associated industries like construction materials,
labor markets, and durable goods.
What is the CSLI: The CSLI tracks approximately 150,000 calls per
month from everyday Americans seeking legal help, comprising a
dataset of more than 35 million consumer requests since 2002. The
index is built on three subindices tracking calls for legal
assistance for issues related to Bankruptcy, Foreclosure and
Consumer Finance, which measures inquiries regarding a variety of
consumer financial concerns such as billing disputes, debt issues
and loan modifications.
About the LegalShield Consumer Stress Legal Index:
As part of LegalShield's mission to ensure every person has equal
access to justice, the company mines its data for insights
policymakers can use to make a real, positive impact in their
decision making. The LegalShield Consumer Stress Legal Index
comprises three subindices that reflect the demand for various
legal services. LegalShield's dataset includes more than 35 million
consumer requests for legal assistance since 2002, averaging
approximately 150,000 calls received monthly. The CSLI uncovers the
daily challenges people are facing and provides actionable
intelligence to help policymakers and industry leaders bridge those
gaps. Released quarterly, view past reports on the CSLI page on
LegalShield.com.
About LegalShield:
For more than 50 years, LegalShield has provided everyday Americans
with easy and affordable access to legal advice, counsel,
protection, and representation. Serving millions, LegalShield is
one of the world's largest platforms for legal, identity, and
reputation management services protecting individuals and
businesses across North America. Founded in 1972, LegalShield, and
its privacy management product, IDShield, has provided individuals,
families, businesses, and employers with tools and services needed
to affordably live a just and secure life. Through technology and
innovation, LegalShield is disrupting the traditional legal system
and transforming how and where people receive legal guidance and
services, with access to hundreds of qualified, trusted attorneys
and law firms. LegalShield and IDShield are products of Pre-Paid
Legal Services, Inc. To learn more about LegalShield and IDShield,
visit LegalShield.com and IDShield.com.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
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Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
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Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
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Peter A. Chapman, Editors.
Copyright 2025. All rights reserved. ISSN: 1520-9474.
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*** End of Transmission ***