/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/250422.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, April 22, 2025, Vol. 29, No. 111 Headlines 1808 MAGINN DR: Seeks Chapter 11 Bankruptcy in California 1847 HOLDINGS: Exchanges Warrants for Series F Preferred Shares 1847 HOLDINGS: Net Loss Widens to $100.5 Million in 2024 1945 OHIO: Hires Mack Law Group as Real Estate Attorney 2U INC: Wins Bid to Close Chapter 11 Bankruptcy Case 3005 WILJAN COURT: Case Summary & Two Unsecured Creditors 301 W NORTH: Seeks Cash Collateral Access Until May 31 42BLUERIDGE LLC: Claims Will be Paid from Property Refinance ADVANTACLEAN OF METRO: Gets Interim OK to Use Cash Collateral AGEAGLE AERIAL: Net Loss Down from $42.4M to $35M in 2024 AIR INDUSTRIES: Prelim FY24 Sales Up 7%, Net Loss Down 36% ALLEN PAVING: Case Summary & 20 Largest Unsecured Creditors AMERICAN STEAM: Seeks to Hire DeMarco·Mitchell PLLC as Counsel AMERICAN STEAM: Gets Interim OK to Use Cash Collateral ANGELA'S BRIDALS: Gets Final OK to Use Cash Collateral APPTECH PAYMENTS: Net Loss Down From $18.5M to $8.9M in 2024 ARCH PRODUCTION: Seeks Cash Collateral Access Until Sept. 30 ASPIRA WOMEN'S: CEO to Receive $400K Annual Base Salary ASPIRA WOMEN'S: Lowers Quorum for Stockholder Meetings ATARA BIOTHERAPEUTICS: CFO Eric Hyllengren Departs; New CAO Named ATTLEBORO REALTY: Updates Unsecured Claims Pay Details AUSTEX AGGREGATES: Gets Interim OK to Use Cash Collateral AVALON GLOBOCARE: Reports $7.9 Million Net Loss in 2024 B.G.P. INC: Gets Extension to Access Cash Collateral BASEL SALAMA: Hires Rank & Karnes Law P.C. as Attorney BEECH INTERNATIONAL: Gets Extension to Access Cash Collateral BELLWETHER INC: Gets Final OK to Use Cash Collateral BEST CHOICE: Gets Interim OK to Use Cash Collateral BEST CHOICE: Hires Law Office of Peter M. Daigle as Attorney BETTER 4 YOU: Loses Bid to Appeal Intrepid Summary Judgment Ruling BETTER CHOICE: Net Loss Down From $22.8M to $168K in 2024 BETTER CHOICE: Stockholders OK Name Change to SRX Health Solutions BIA SEPARATIONS: Executives Want Chapter 15 Paused BIOLINERX LTD: Losses Narrow to $9.2 Million in 2024 BISHOP OF OAKLAND: Committee Hires Stout Risius as Consultant BLABLMBTQ LLC: Case Summary & 12 Unsecured Creditors BLOCKFI INC: Claims Objection Order in Tubergen Suit Affirmed BLUE LINE: Reports $241,741 Net Income in 2024 BOOST NEWCO: Moody's Puts 'Ba3' CFR Under Review for Upgrade BTG TEXTILES: Has Deal on Cash Collateral Access C & C ELECTRIC: Files Emergency Bid to Use Cash Collateral CAN BROTHERS: Gets Court OK to Use Cash Collateral Until June 30 CARMEN FRATICELLI: Court Values Residential Property at $135,000 CATHETER PRECISION: Net Loss Narrows to $16.6 Million in 2024 CELSIUS NETWORK: Bankruptcy Reference Withdrawn in Adversary Case CELSIUS NETWORK: Curated Loses Bid to Dismiss Adversary Case CIVILGEO INC: Hires Michael Best & Friedrich LLP as Counsel CLST ENTERPRISES: Member Loses Bid to Stay Eviction Order CMG HOLDINGS: Files Form 15-12G to Suspend SEC Reporting COASTAL GROWERS: Hires Berger Singerman LLP as Counsel COMMONWEALTH BIOTECHNOLOGIES: Chien v. Jensen, et al. Suit Tossed CORTEX NORTH: Case Summary & 14 Unsecured Creditors CQENS TECHNOLOGIES: Reports Net Loss of $10.9 Million in 2024 DAATS COMPANIES: Seeks to Hire Joyce W. Lindauer as Counsel DAYTON DEVELOPMENT: Case Summary & 14 Unsecured Creditors DCA OUTDOOR: Committee Hires Dundon Advisers as Financial Advisor DIAMONDHEAD CASINO: Posts Net Loss of $1.8 Million in 2024 DIOCESE OF SAN FRANCISCO: Court Permits Trial Cases to Proceed DMG PRACTICE: S&P Alters Outlook to Stable, Affirms 'B-' ICR DOMAN BUILDING: Moody's Alters Outlook on 'Ba3' CFR to Negative DOW CORNING: 9th Cir. Affirms Ruling in Korean Claimants' Case DR. JOHN C. DRAGON: Seeks Subchapter V Bankruptcy in Virginia E.W. SCRIPPS: Fitch Corrects April 15 Ratings Release ENTRUST ENERGY: Trustee Challenges ERCOT's Motion to Dismiss Claims ERC MANUFACTURING: Hires Jose L. Ortiz Torres as Accountant EXPANSION INDUSTRIES: Nexmark Holds Public Auction EXPERT AUTOMOTIVE: Claims to be Paid from Continued Operations FOREVER 21: Creditors Investigate IP Sale to Authentic Brands Group FTAI AVIATION: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable GIGA WATT: Wins Bid to Dismiss Claims Appeal in Dam Lawsuit GIGA WATT: Wins Bid to Dismiss Dam Lawsuit Over PLG Fees GIGA WATT: Wins Bid to Dismiss PLG Fees Appeal in Dam Suit GRAY MEDIA: Fitch Affirms & Then Withdraws B- IDR, Outlook Negative GUIDED THERAPEUTICS: Posts Net Loss of $2.4 Million in 2024 HARRCO TRANSPORTATION: Seeks to Hire Lorium Law as Counsel HERITAGE COAL: Disputes Former Owner's Liens in Chapter 11 Spinoff HIGH WIRE: 2024 Net Loss Narrows to $385K HRM DETROIT: Seeks Chapter 11 Bankruptcy in Michigan IDEAL HEALTH: Unsecureds Will Get 2% of Claims over 60 Months IGNITE OPTICS: Unsecureds to be Paid in Full over 3.5 Years IROQUOIS-HUEY LLC: Claims to be Paid from Disposable Income JAB ENERGY: AMH Fails to Stay Ruling in Breach of Fiduciary Suit JAGUAR HEALTH: Records $39.3 Million Net Loss in 2024 JAMES JOSEPH: Court Denies Bid to Obtain $600K DIP Loan JAZ NCR: Claims to be Paid From Available Cash and Income JEA2 LLC: Unsecured Creditors Will Get 100% of Claims in Plan KINA LANE: Seeks $30,000 DIP Loan From Insider KINGFISH HOLDING: Schedules Annual Shareholder Meeting for May 8 KOZUBA & SONS: Gets Interim OK to Use Cash Collateral Until May 15 LA TERMINALS: Consent Decree Entered in Los Angeles, et al. Suit LANDMARK HOLDINGS: Court Extends Cash Collateral Access to May 18 LAZARUS INDUSTRIES: Seeks Chapter 11 Bankruptcy in New York LEVY VENTURES: NewRez Seeks to Prohibit Cash Collateral Access LODGING ENT: Objections to American Hotel's Claims Sustained LOGIX COMMUNICATIONS: Davis Polk Advise Lenders on Recapitalization MID VALLEY NUT: Seeks to Use $7,500 in Cash Collateral MP OCTOPUS: Gets Extension to Access Cash Collateral MYSTICAL STARS: Claims to be Paid from Business Revenue NB STRANDS: Files Amendment to Disclosure Statement NEW BOOST: S&P Places 'BB' ICR on CreditWatch Positive NEW YORK INN: Summary Judgment in Favor of Insurer Affirmed NORTH AMERICAN SEALING: Case Summary & 20 Top Unsecured Creditors ORIGINCLEAR INC: Posts Net Loss of $19 Million in 2024 PHUNWARE INC: 2024 Net Loss Narrows to $10.3 Million PINNACLE FOODS: Court Rules on Four Fee Applications PRIMERO SPINE: Hires William G. Haeberle CPA LLC as Accountant PROFESSIONAL DIVERSITY: Posts Net Loss of $2.5 Million in 2024 PURDUE PHARMA: Fine-Tunes Plan Documents R & H MOTOR: Hires Jason Ward Law LLC as Bankruptcy Counsel RADIANT ONE: Unsecureds Will Get 10% of Claims over 5 Years REBECCA LOPEZ-DUPREY: Court Loses Summary Judgment Bid in MGM Suit RECOM LLC: Judge Makes Findings of Fact on Plan of Reorganization RICARDO BORREGO: Ex-Counsel's Compensation Request Okayed RICHMOND TELEMATICS: Court Extends Cash Collateral Access to May 6 RIGHT SIZE: Court OKs Deal to Use SBA's Cash Collateral RMBQ INC: Section 341(a) Meeting of Creditors on May 14 ROBERT R. PILKINGTON: Court Tosses Appeal in Consolidated Case ROBERT R. PILKINGTON: Court Tosses Appeal in Ligett, et al. Suit ROCK 51: Loses Bid to Stay Order on Pref 7 Lease Agreement SABER AUTOMOTIVE: Hires Levitt Law APC as Transactional Attorney SAFE HARBOR: Expresses 'Going Concern' Doubts SAFE PRO: Net Loss Rises to $7.43M in 2024, Revenue Grows to $2.17M SANUWAVE HEALTH: Subsidiary Signs 5-Year Lease for Eden Prairie HQ SCHULTE INC: Gets OK to Use $216K in Cash Collateral Until July 31 SCILEX HOLDING: Completes 1-for-35 Reverse Stock Split SCILEX HOLDING: Unit's Merger Deal Amended as Denali Moves to OTC SERTA SIMMONS: Court Narrows Claims Brooks Discrimination Suit SHILO INN: Order to Appoint Receiver Affirmed in Cathay Bank Suit SHREE AMIRTAYA: Seeks to Use $6,865 in Cash Collateral STEWARD HEALTH: Plan Participants Lose Bid to Stay Turnover Order TALKING ROCK: Voluntary Chapter 11 Case Summary TRI-BOROUGH HOME: Case Summary & Two Unsecured Creditors U.S.A. DAWGS: Fee Order in Double Diamond v. GTG Lawsuit Affirmed UPTOWN WINE: Voluntary Chapter 11 Case Summary VETCORE TECHNOLOGY: Wins Interim OK to Obtain DIP Loan VOBEV LLC: Unsecured Creditors to Recover Up to 0.8% of Claims WHITEHORSE 401: Unsecured Creditors to Split $250K in Plan WOLYNIEC CONSTRUCTION: Hires Cunningham Chernicoff as Counsel YOUTHFUL SOLUTIONS: Hires Frank B. Lyon as Legal Counsel YOUTHFUL SOLUTIONS: Hires Wellness Capital as Accountant ZIPS CAR WASH: Secures Court Approval for Restructuring Plan ********* 1808 MAGINN DR: Seeks Chapter 11 Bankruptcy in California --------------------------------------------------------- On April 15, 2025, 1808 Maginn Dr LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About 1808 Maginn Dr LLC 1808 Maginn Dr LLC is a limited liability company. 1808 Maginn Dr LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-13112) on April 15, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Barry Russell handles the case. The Debtor is represented by Onyinye N. Anyama, Esq. at ANYAMA LAW FIRM, APC. 1847 HOLDINGS: Exchanges Warrants for Series F Preferred Shares --------------------------------------------------------------- As previously disclosed, on October 30, 2024, 1847 Holdings LLC issued series A warrants to purchase common shares to certain investors, most of which were exercised shortly after issuance. On March 11, 2025, the exercise price of the remaining Series A Warrants was reduced to $0.81 per share, with a corresponding increase in the number of Series A Warrants. Following this adjustment, the number of Series A Warrants outstanding was increased to 632,990, with each Series A Warrant exercisable for two common shares, or an aggregate of 1,265,980 common shares. Following the adjustment, a holder exercised 193,348 Series A Warrants for 386,696 common shares. Accordingly, an aggregate of 439,642 Series A Warrants remain outstanding. On March 25, 2025, the Company entered into cancellation and exchange agreements with the holders of the Remaining Warrants and the Exercised Shares, pursuant to which such holders agreed to exchange the Remaining Warrants and the Exercised Shares for an aggregate of 1,027 series F convertible preferred shares. In connection with the Exchange Agreements, on March 25, 2025, the Company executed a Share Designation to establish the terms of the series F convertible preferred shares. Pursuant to the Share Designation, the Company designated 1,027 of its preferred shares as series F convertible preferred shares with a stated value of $1,000 per share. Following is a summary of the material terms of the series F convertible preferred shares: Ranking: The series F convertible preferred shares rank, with respect to the payment of dividends and the distribution of assets upon liquidation, (i) senior to all common shares, allocation shares, series C preferred shares, series D preferred shares and each other class or series that is not expressly made senior to or on parity with the series F convertible preferred shares; (ii) on parity with each other class or series that is not expressly subordinated or made senior to the series F convertible preferred shares; and (iii) junior to the series A senior convertible preferred shares, all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company and each other class or series that is expressly made senior to the series F convertible preferred shares. Dividend Rights: Holders of series F convertible preferred shares are entitled to receive dividends, when, as and if declared on the common shares, pari passu with the holders of common shares, on an as-converted basis. Liquidation Rights: Subject to the rights of creditors and the holders of any senior securities or parity securities (in each case, as defined in the Share Designation), upon any liquidation of the Company, before any payment or distribution of the assets of the Company (whether capital or surplus) shall be made to or set apart for the holders of junior securities (as defined in the Share Designation), each holder of outstanding series F convertible preferred shares shall be entitled to receive an amount of cash equal to 100% of the stated value ($1,000 per share). If, upon any liquidation, the assets, or proceeds thereof, distributable among the holders of the series F convertible preferred shares shall be insufficient to pay in full the preferential amount payable to the holders of the series F convertible preferred shares and liquidating payments on any other shares of any class or series of parity securities as to the distribution of assets on any liquidation, then such assets, or the proceeds thereof, shall be distributed among the holders of series F convertible preferred shares and any such other parity securities ratably in accordance with the respective amounts that would be payable on such series F convertible preferred shares and any such other parity securities if all amounts payable thereon were paid in full. Voting Rights: The series F convertible preferred shares do not have any voting rights; provided that, so long as any series F convertible preferred shares are outstanding, the Company shall not, and shall not permit any of its subsidiaries to, directly or indirectly, without the affirmative vote of the holders of a majority of the then outstanding series F convertible preferred shares, (a) amend the Company's certificate of formation or its operating agreement in any manner that adversely affects any rights of the holders of the series F convertible preferred shares or alter or amend the Share Designation, (b) authorize or create any class of shares ranking as to dividends, redemption or distribution of assets upon a liquidation senior to, or otherwise pari passu with, the series F convertible preferred shares, or (c) enter into any agreement with respect to any of the foregoing. Conversion Rights: Each series F convertible preferred share shall be convertible, at the option of the holder thereof, at any time and from time to time, into such number of fully paid and nonassessable common shares determined by dividing the stated value ($1,000 per share) by the conversion price of $0.1549 per share. The conversion price is subject to standard adjustments in the event of any share splits, share combinations, share reclassifications, dividends paid in common shares, sales of substantially all of the Company's assets, mergers, consolidations or similar transactions, as well as for subsequent issuances of common shares, or securities convertible into or exercisable or exchangeable for common shares, at a price below the then conversion price; provided that a holder shall not be entitled to utilize a conversion price of less than $0.01 (subject to standard adjustments for share splits, share combinations, recapitalizations and similar transactions). Notwithstanding the foregoing, the aggregate number of common shares that the Company may issue upon conversion of the series F convertible preferred shares is limited to 5,385,291 shares (equal to 19.99% of the Company's outstanding common shares prior to entry into the Exchange Agreements) prior to obtaining shareholder approval of the issuance of all common shares that may be issued upon conversion of the series F convertible preferred shares, in accordance with NYSE American rules. Furthermore, the Company shall not effect any conversion of the series F convertible preferred shares, and a holder shall not have the right to convert any portion of the series F convertible preferred shares, to the extent that, after giving effect to the conversion, such holder (together with such holder's affiliates) would beneficially own in excess of 4.99% of the number of common shares outstanding immediately after giving effect to the issuance of common shares issuable upon conversion. This limitation may be waived (up to a maximum of 9.99%) by the holder in its sole discretion upon not less than 61 days' prior notice to the Company. Other Rights: Holders of series F convertible preferred shares have no redemption, preemptive or subscription rights for additional securities of the Company. About 1847 Holdings Based in New York, NY, 1847 Holdings LLC -- www.1847holdings.com -- is an acquisition holding company focused on acquiring and managing a group of small businesses, which the Company characterizes as those with an enterprise value of less than $50 million, in a variety of different industries headquartered in North America. Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's auditor since 2017, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has suffered recurring losses and negative cash flows from operations, and has a working capital deficit, which raises substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2024, the Company had $33,647,738 in total assets, $130,113,775 in total liabilities, and a total stockholders' deficit of $96,466,037. 1847 HOLDINGS: Net Loss Widens to $100.5 Million in 2024 -------------------------------------------------------- 1847 Holdings LLC filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $100,527,409 on $15,710,330 of total revenues for the year ended Dec. 31, 2024, compared to a net loss of $31,607,927 on $14,190,135 of total revenues for the year ended Dec. 31, 2023. Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's auditor since 2017, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has suffered recurring losses and negative cash flows from operations, and has a working capital deficit, which raises substantial doubt about its ability to continue as a going concern. 1847 Holdings said, "We have generated losses since inception and have relied on cash on hand, sales of securities, external bank lines of credit, and issuance of third-party and related party debt to support cashflow from operations. As of December 31, 2024, we had cash and cash equivalents of $2,502,450, restricted cash of $1,358,968 and a total working capital deficit of $111,927,759. For the year ended December 31, 2024, we incurred an operating loss of $11,998,244 and used cash flows in operating activities of $14,635,636." "Notwithstanding the foregoing, management believes, based on our operating plan, that current working capital and current and expected additional financing is sufficient to fund operations and satisfy our obligations as they come due for at least one year from the financial statement issuance date. However, we do believe additional funds are required to execute our business plan and our strategy of acquiring additional businesses. The funds required to execute our business plan will depend on the size, capital structure and purchase price consideration that the seller of a target business deems acceptable in a given transaction. The amount of funds needed to execute our business plan also depends on what portion of the purchase price of a target business the seller of that business is willing to take in the form of seller notes or our equity or equity in one of our subsidiaries." "Although we do not believe that we will require additional cash to continue our operations over the next twelve months, there are no assurances that we will be able to raise our revenues to a level which supports profitable operations and provides sufficient funds to pay obligations in the future. Our prior losses have had, and will continue to have, an adverse effect on our financial condition. In addition, continued operations and our ability to acquire additional businesses may be dependent on our ability to obtain additional financing in the future, and there are no assurances that such financing will be available to us at all or will be available in sufficient amounts or on reasonable terms. Our financial statements do not include any adjustments that may result from the outcome of this uncertainty. If we are unable to generate additional funds in the future through our operations, financings or from other sources or transactions, we will exhaust our resources and will be unable to continue operations. If we cannot continue as a going concern, our shareholders would likely lose most or all of their investment in us." Mr. Ellery W. Roberts, CEO of 1847, commented, "2024 was a transformative year marked by a series of strategic initiatives that served as a significant turning point for our company. We recorded revenue of $15.7 million for the year ended December 31, 2024, with gross profit increasing by 18.6% over the prior year. Toward the end of 2024, we completed the acquisition of CMD, a highly accretive addition to our portfolio. Notably, on a pro forma basis for the year-ended December 31, 2024, CMD reported revenues of $30.8 million--a 13.5% increase compared to the previous year. During the year, CMD's gross profit increased by 25.9% to $13.6 million, while income from operations increased by 26.0% to $7.5 million. Net income grew by 28.9% to $7.5 million, a clear indication of CMD's strong financial trajectory and continued market demand. A key element of our growth strategy involves selectively refining our portfolio to maximize returns. In late September 2024, we finalized the sale of High Mountain, a Reno, Nevada-based provider of finished carpentry products and services. Originally acquired in October 2021, High Mountain was sold to a strategic buyer for $17 million, valuing the business at nearly seven times adjusted EBITDA. This sale price was almost double our estimated purchase price from three years prior, underscoring our ability to enhance portfolio value through strategic oversight and operational improvements. While our reported net loss for the year may appear significant, it's important to emphasize that a substantial portion of this loss is driven by non-cash and one-time items--particularly the change in fair value of our warrant liabilities. Due to features in the Series A and Series B warrants that allow the exercise price to decrease (subject to a floor) and the number of shares issuable to increase upon certain events (e.g., reverse stock splits, registration resets, or lower-priced financings), as well as the alternative cashless exercise option in the Series A warrants, these warrants provide added value to the holders beyond a standard fixed-for-fixed arrangement. As a result, we classify the warrants as liabilities and remeasure them at fair value each reporting period. Over time, upon exercise or expiration, the warrant liabilities will be reduced to zero, with changes reflected as an increase to shareholders' equity and net income. Excluding these non-cash charges, our core performance remains firmly in line with our long-term objectives, positioning us to capitalize on future growth opportunities. Looking ahead, we expect to generate net income, projecting approximately $1.3 million in 2025 with revenue exceeding $45 million. This profitability milestone is expected to accelerate in 2026, with anticipated net income of $5 million and revenue surpassing $60 million--underscoring the success of our strategic vision and disciplined execution. With a strong pipeline of acquisition opportunities and a relentless focus on high-margin, scalable businesses, we believe we are positioned for exponential growth. We are also exploring the potential strategic sale of Wolo, as well as strategic alternatives for CMD. The substantial inbound interest we have received is a testament to CMD's strong market presence and financial performance. Given CMD's impressive growth and the strategic value it presents, we believe this is the right time to explore opportunities that could unlock significant value for our shareholders. Our future has never been brighter, and we remain more confident than ever in our ability to drive sustained value for our investors," concluded Mr. Roberts. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/38559adk About 1847 Holdings Based in New York, NY, 1847 Holdings LLC -- www.1847holdings.com -- is an acquisition holding company focused on acquiring and managing a group of small businesses, which the Company characterizes as those with an enterprise value of less than $50 million, in a variety of different industries headquartered in North America. As of Dec. 31, 2024, the Company had $33,647,738 in total assets, $130,113,775 in total liabilities, and a total stockholders' deficit of $96,466,037. 1945 OHIO: Hires Mack Law Group as Real Estate Attorney ------------------------------------------------------- 1945 Ohio Street, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Mack Law Group as real estate attorney. The firm will assist in selling the real estate owned by the Debtor known as 1945 Ohio Street, Lisle, Illinois. The firm will be paid at $375 per hour. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Charles Mack, Esq., a partner at Mack Law Group as Real Estate Attorney, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Charles Mack, Esq. Mack Law Group East Building, Suite 350 Bloomfield Hills, MI 48304 Tel: (248) 562-6423 About 1945 Ohio Street, LLC 1945 Ohio Street LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). 1945 Ohio Street LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-18816) on December 17, 2024. In the petition filed by Ernest Edwards, as managing member, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Janet S. Baer handles the case. The Debtor is represented by: Paul M. Bach, Esq. BACH LAW OFFICES P.O. Box 1285 Northbrook, IL 60065 E-mail: paul@bachoffices.com 2U INC: Wins Bid to Close Chapter 11 Bankruptcy Case ---------------------------------------------------- The Honorable Michael E. Wiles of the United States Bankruptcy Court for the Southern District of New York will grant 2U, Inc.'s motion for the entry of a final decree closing its chapter 11 case. 2U, Inc. and eight of its affiliates commenced these jointly administered chapter 11 cases on July 25, 2024. The Court confirmed the debtors' Second Amended Joint Prepackaged Plan of Reorganization by an order entered Sept. 9, 2024. The affiliates' cases were closed on Dec. 19, 2024, and all remaining matters were consolidated for resolution into this chapter 11 case. The motion is opposed only by Simmons University, which contends that certain issues relating to the assumption of an executory contract(s) between Simmons and 2U remain to be decided by the Court and that the case cannot be closed until that occurs. The parties agree that the confirmed Plan calls for the assumption of the executory contract(s) between 2U and Simmons. They also agree that Simmons informally raised issues about the assumption of the contract(s) prior to the confirmation of the Plan and that, as a result Simmons retains the right to obtain a determination as to the nature of any defaults that 2U is obligated to cure and as to whether 2U provided adequate assurance of future performance of its obligations. They disagree, however, as to how those issues are to be raised and decided. Simmons contends that the Court must (or should) decide them, while 2U says they must be resolved through the dispute resolution provisions of the parties' contracts, including arbitration. Simmons contends that the Plan supports its view. Simmons argues that the issues that must be decided include bankruptcy-specific issues about adequate assurance of future performance and not just disputes over alleged contract defaults, and that the bankruptcy-specific issues should be decided by the Court. Judge Wiles says, "But if that is what Simmons believes (or believed), then it should have made that argument in connection with the confirmation hearing. Instead, Simmons agreed to language that stated expressly that all issues relating to the assumption of its contract, including issues relating to adequate assurance of future performance, would be resolved under the contractual dispute resolution procedures. Simmons may now regret its decision, but it is bound by its prior agreement and its decision not to object, and its current complaint about the procedure comes far too late." The objection filed by Simmons is overruled, the Court holds. The separate motion by Simmons to enforce the Confirmation Order and to compel a rejection if its contract(s) with 2U, are denied, without prejudice to its right to pursue its disputes in accordance with the dispute resolution provisions in its contract(s). A copy of the Court's decision is available at https://urlcurt.com/u?l=YiLOEs from PacerMonitor.com. Attorneys for Reorganized Debtors 2U, Inc.: George A. Davis, Esq. George Klidonas, Esq. Anupama Yerramalli, Esq. Randall C. Weber-Levine, Esq. Scott Yousey, Esq. LATHAM & WATKINS LLP E-mail: george.davis@lw.com george.klidonas@lw.com anu.yerramalli@lw.com randall.weber-levine@lw.com scott.yousey@lw.com Attorneys for Simmons University: Rachel Ehrlich Albanese, Esq. DLA PIPER LLP (US) 1251 Avenue of the Americas New York, NY 10020-1104 E-mail: rachel.albanese@us.dlapiper.com - and Erik F. Stier, Esq. DLA PIPER LLP (US) 500 Eighth Street, NW Washington, DC 20004 E-mail: erik.stier@us.dlapiper.com 3005 WILJAN COURT: Case Summary & Two Unsecured Creditors --------------------------------------------------------- Debtor: 3005 Wiljan Court, LLC 290 Sequoia Drive San Anselmo, CA 94960 Business Description: 3005 Wiljan Court, LLC is a real estate debtor under 11 U.S.C. Section 101(51B), holding a single asset. The Company owns the property located at 3005 Wiljan Court, Santa Rosa, California 95407, which is currently valued at $4.88 million. Chapter 11 Petition Date: April 17, 2025 Court: United States Bankruptcy Court Northern District of California Case No.: 25-30299 Judge: Hon. Hannah L Blumenstiel Debtor's Counsel: Brent D. Meyer, Esq. MEYER LAW GROUP, LLP 268 Bush Street #3639 San Francisco, CA 94104 Tel: (415) 765-1588 Fax: (415) 762-5277 E-mail: brent@meyerllp.com Total Assets: $4,930,774 Total Liabilities: $4,786,670 The petition was signed by Lucien Lidji as responsible individual. A full-text copy of the petition, which includes a list of the Debtor's two unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/F3BN3UA/3005_Wiljan_Court_LLC__canbke-25-30299__0001.0.pdf?mcid=tGE4TAMA 301 W NORTH: Seeks Cash Collateral Access Until May 31 ------------------------------------------------------ 301 W. North Avenue, LLC asked the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, for authority to use cash collateral through May 31. The collateral at issue consists of post-petition rents generated by a seven-story mixed-use property in Illinois, which includes 69 residential units, ground-floor retail space, and parking. The Debtor requests authority to use these funds to cover ordinary operating expenses—such as property management fees, maintenance, utilities, leasing commissions, and insurance—in accordance with the budget, with a 10% variance. As of the bankruptcy filing on April 5, the Debtor had $614,001.54 in its operating account, consisting of prepetition rents. BDS III Mortgage Capital G LLC is the only creditor asserting an interest in the post-petition cash collateral and is the successor to the original lender that financed the property through a $26 million loan in 2020. Although BDS has not consented to the Debtor's proposed use of the cash collateral, the Debtor argues that such use should be authorized because BDS is adequately protected. The Debtor proposes to grant BDS replacement liens on all of its existing and future assets (excluding Chapter 5 avoidance actions), limited to the extent of any post-petition diminution in value of BDS's collateral. These liens would attach with the same validity and priority as BDS's prepetition liens and would be subject only to prior, perfected, unavoidable liens as of the petition date. A hearing on the matter is set for April 23. About 301 W North Avenue 301 W North Avenue LLC is a real estate debtor with a single asset, as outlined in 11 U.S.C. Section 101(51B), and its main property is situated at 1552 N. North Park Avenue, Chicago, IL 60610. 301 W North Avenue LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-05275) on April 5, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million to $50 million each. Honorable Bankruptcy Judge Timothy A. Barnes handles the case. The Debtor is represented by Robert Glantz, Esq. ROBERT GLANTZ MUCH SHELIST, P.C. BDS III Mortgage Capital G LLC, as creditor, is represented by: Steven Yachik, Esq. William S. Gyves, Esq. Benjamin Feder, Esq. Philip A. Weintraub, Esq. KELLEY DRYE & WARREN LLP 3 World Trade Center 175 Greenwich Street New York, New York 10007 Telephone: (212) 808-7800 Facsimile: (212) 808-7897 Email: syachik@kelleydrye.com wgyves@kelleydrye.com bfeder@kelleydrye.com pweintraub@kelleydrye.com 42BLUERIDGE LLC: Claims Will be Paid from Property Refinance ------------------------------------------------------------ 42Blueridge LLC filed with the U.S. Bankruptcy Court for the District of New Jersey a Disclosure Statement describing Plan of Reorganization dated March 20, 2025. The Debtor was formed as a domestic limited liability company organized under the laws of the State of New Jersey on August 31, 2020. The Debtor's sole asset is a residential real property located at 42 Blue Ridge Circle, Plainfield, New Jersey 07060 (the "Property"). The Debtor acquired the Property on or before November 17, 2020 for the purpose of managing the Property to produce a rental income. Pursuant to a pre-petition appraisal for the Property, the Property has a value of approximately $910,000.00. SSA VTX Assets, LLC ("Secured Creditor") asserts a first priority mortgage lien against the Property in the amount of $755,879.41. To remedy the problems that led to the bankruptcy filing, the Debtor's principal, Mr. Hassan Moseley, has coordinated the voluntary removal of the non-paying tenants, and paid for home insurance and real estate taxes from his personal funds to keep those items in current status. The Debtor has also procured a reduced payoff statement ("Payoff Statement") from Secured Creditor which will serve as the basis for the payoff and refinance of Secured Creditor's mortgage lien, or in the alternative, the payoff of the first priority mortgage lien as part of an open market sale of the Property. The Debtor does not have any General Unsecured Claims. The Debtor will retain ownership of the Property. Mr. Hassan Moseley will continue as the Debtor's sole owner and managing member. The Plan will be funded by a refinance of the mortgage loan on the Property on the effective date. There shall be no prepayment penalty for any priority, administrative or class of claims. The refinance will consist of two parts: (1) a loan from LML IV Holdings LLC ("New Lender") in an amount no less than $400,000.00, which loan shall be secured by a first priority mortgage lien on the Property, and (2) a contribution from personal funds by Mr. Hassan Moseley, the Debtor's sole owner and managing member, in an amount sufficient to complete a payoff of Secured Creditor's existing mortgage lien at the reduced amount stated in the Payoff Statement. New Lender is continuing its due diligence with respect to the making of its real estate loan and its financing remains contingent on, among other things, underwriting approval and clearance by legal counsel. A full-text copy of the Disclosure Statement dated March 20, 2025 is available at https://urlcurt.com/u?l=mvqn8W from PacerMonitor.com at no charge. Counsel for the Debtor: GOLDMAN & BESLOW, LLC Attorneys at Law David G. Beslow, Esq. 7 Glenwood Avenue, Suite 311B East Orange, NJ 07017 Phone: (973) 677-9000 About 42Blueridge LLC 42Blueridge LLC was formed as a domestic limited liability company organized under the laws of the State of New Jersey on August 31, 2020. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-19194) on September 17, 2024, with $0 to $50,000 in assets and $500,001 to $1 million in liabilities. Judge Vincent F. Papalia presides over the case. David G. Beslow, Esq. at GOLDMAN & BESLOW, LLC represents the Debtor as legal counsel. ADVANTACLEAN OF METRO: Gets Interim OK to Use Cash Collateral -------------------------------------------------------------- AdvantaClean of Metro New Orleans, LLC received interim approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to use cash collateral and provide adequate protection. The Debtor needs to use cash collateral to pay essential expenses like payroll and restructuring costs. The Debtor filed for Chapter 11 protection on March 13, 2025, following the seizure of approximately $67,000 from its bank account by a creditor, American Relief Group, LLC. This seizure left the Debtor unable to operate, prompting the need for bankruptcy protection under Subchapter V. Before filing, Hancock Whitney Bank extended two lines of credit to the Debtor, likely secured by a lien on its accounts. The Debtor now seeks interim authorization to use cash collateral—including funds in its accounts and future operating income—to continue business operations in line with a 13-week budget, with flexibility to exceed certain budget categories by up to 10% if sufficient cash is available. As adequate protection for Hancock Whitney, the Debtor will make monthly payments of $2,437 to SBA and $4,000 to Hancock Whitney, and grant replacement liens on post-petition assets. About AdvantaClean of Metro New Orleans AdvantaClean of Metro New Orleans LLC is a provider of mold remediation, water damage restoration, air duct cleaning, and moisture management services for both homes and businesses. With an emphasis on fostering healthier living spaces, the Company offers solutions for problems such as flooding, mold issues, and crawl space sealing. As a locally owned and managed business, AdvantaClean is dedicated to offering professional, dependable, and top-quality services to the New Orleans area. AdvantaClean of Metro New Orleans LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No.: 25-10439) on March 13, 2025. In its petition, the Debtor reports estimated assets up to $50,000 ad estimated liabilities between $1 million to $10 million. Honorable Bankruptcy Judge Meredith S. Grabill handles the case. Ryan J. Richmond, Esq., at Sternberg, Naccari & White, LLC serves as the Debtor's counsel. Hancock Whitney Bank, as lender, is represented by: Peter J. Segrist, Esq. David J. Scotton, Esq. Carver, Darden, Koretzky, Tessier, Finn, Blossman & Areaux, L.L.C. 1100 Poydras Street, Suite 3100 New Orleans, Louisiana 70163 Telephone: (504) 585-3800 Fax: (504) 585-3801 Email: segrist@carverdarden.com scotton@carverdarden.com AGEAGLE AERIAL: Net Loss Down from $42.4M to $35M in 2024 --------------------------------------------------------- AgEagle Aerial Systems Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $35 million on $13.4 million of revenues for the year ended Dec. 31, 2024, compared to a net loss of $42.4 million on $13.7 million of total revenues for the year ended Dec. 31, 2023. Orlando, Florida-based WithumSmith+Brown, PC, the company's auditor since 2020, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has suffered recurring losses from operations, has experienced cash used from operations in excess of its current cash position, and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. As of December 31, 2024, the Company had $3.6 million cash on hand and a working capital of $3.1 million. During the year ended December 31, 2024, the Company incurred a net loss of approximately $35 million and used cash in operating activities of approximately $6.6 million. While the Company has historically been successful in raising capital to meet its working capital needs, the ability to continue raising such capital to enable the Company to continue its growth is not guaranteed. As the Company will require additional liquidity to continue its operations and meet its financial obligations over the next 12 months, there is substantial doubt about the Company's ability to continue as a going concern. The Company is evaluating strategies to obtain the required additional funding for future operations and the restructuring of operations to grow revenues and reduce expenses. If the Company is unable to generate significant sales growth in the near term and raise additional capital, there is a risk that the Company could default on obligations; and could be required to discontinue or significantly reduce the scope of its operations if no other means of financing options are available. The consolidated financial statements contained in this Annual Report do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount and classification of liabilities or any other adjustment that might be necessary should the Company be unable to continue as a going concern. AgEagle CEO Bill Irby commented, "2024 was a defining year for AgEagle. We secured three of the largest orders in our history while implementing significant strategic cost reductions that have strengthened our foundation for long-term sustainable growth. We assembled an exceptional leadership team with deep expertise in scaling technology companies, optimizing operations, and executing aggressive sales strategies. Combined with a leaner expense structure, record demand, and a growing product portfolio, we believe we are well positioned to expand our customer base, secure new partnerships, and leverage our innovative drone technologies to capitalize on emerging opportunities in the burgeoning global UAS market. "As we look ahead to 2025, our focus remains on deepening our market penetration and delivering sustainable value to our entire global customer portfolio. We anticipate continued expansion across our core markets in 2025, driven by increasing adoption of drone technology for a myriad of commercial and defense applications. We remain committed to innovation, operational efficiency, and strategic partnerships to further accelerate growth across all verticals while ensuring fiscal discipline and maximizing shareholder value." A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/5n8z62pw About AgEagle AgEagle Aerial Systems Inc. is headquartered in Wichita, Kansas, and operates through its wholly-owned subsidiaries, focusing on designing and delivering top-tier drones, sensors, and software to address critical customer needs. Founded in 2010, AgEagle initially pioneered proprietary, professional-grade, fixed-wing drones and aerial imagery-based data collection and analytics solutions for the agriculture sector. Today, the company is recognized as a globally respected market leader, offering customer-centric, advanced, autonomous unmanned aerial systems (UAS) that generate revenue at the intersection of flight hardware, sensors, and software across industries, including agriculture, military/defense, public safety, surveying/mapping, and utilities/engineering. AgEagle has achieved numerous regulatory milestones, including government approvals for its commercial and tactical drones to fly Beyond Visual Line of Sight (BVLOS) and/or Operations Over People (OOP) in the United States, Canada, Brazil, and the European Union. It has also received Blue UAS certification from the Defense Innovation Unit of the U.S. Department of Defense. More information can be found at www.ageagle.com. As of Dec. 31, 2024, the Company had $20.6 million in total assets, $26.3 million in total liabilities, and a total stockholders' deficit of $5.7 million. AIR INDUSTRIES: Prelim FY24 Sales Up 7%, Net Loss Down 36% ---------------------------------------------------------- Air Industries Group announced preliminary unaudited financial results for the calendar year ended December 31, 2024. The Company also reported record levels of new business and backlog and noted it will utilize the automatic 15-day extension to file its Annual Report on Form 10-K for the year ended December 31, 2024. Preliminary Fiscal 2024 Financial Results (unaudited): For the year ended December 31, 2024, Air Industries achieved growth in net sales, gross profit, and operating income, while significantly reducing its net loss. * Net Sales in 2024 rose to $55.1 million, a 7% increase from $ 51.5 million in 2023. * Gross Profit in 2024 improved to $8.9 million from $7.4 million in 2023. Gross profit as a percentage of sales rose to 16.2%, an increase of 180 basis points from 14.4% in 2023. * Operating income was $459,000 – up from an operating loss of $295,000 in 2023. * Net loss for 2024 was reduced by $765,000 to $1.4 million, an improvement of 35.9% from the prior year. Q4 2024 Snapshot: For the fourth quarter, sales and gross profit increased, while operating and net results were impacted by certain timing and cost factors. Net Sales in 2024 reached $14.9 million, up 11.9% from $13.4 million in 2023 * Gross Profit rose to $2.4 million, up 13.2% from $2.2 million in 2023. Gross profit as a percentage of sales for 2024 was 16.3% just slightly higher than Q4 of 2023. * Operating loss was $111,000, compared to operating income of $587,000 in 2023. * Net loss totaled $554,000 in 2024, compared to net income of $181,000 in the prior year. * The increase in operating and net losses was due primarily to higher non-cash stock compensation expense increasing operating expense for the quarter. Adjusted EBITDA for fiscal 2024 was $3.6 million an increase of nearly $1 million or 35.3% from $2.7 million in 2023. Record Bookings and Backlog Fuel Growth: Air Industries achieved significant growth in both bookings and backlog in 2024: * New bookings increased by 15% compared to 2023. The "book-to-bill" ratio was 1.30x, exceeding the accepted aerospace industry benchmark of 1.20x. * Total Backlog (Funded & Unfunded) now exceeds a quarter of a billion dollars - a new record for the company. CEO Commentary: Lou Melluzzo, Chief Executive Officer of Air Industries Group commented: "Air Industries made meaningful progress across all key areas in 2024. We achieved record bookings, grew revenue, expanded gross margins, and returned to positive operating income. This performance reflects our continued focus on operational improvement and customer satisfaction." "While full-year sales rose a solid 7%, our gross profit increased more than 20% - nearly three-times faster – demonstrating the operating leverage inherent in our business model. Perhaps most significantly, we converted an operating loss in 2023 into positive operating income in 2024 and reduced our net loss by nearly 36%." "Improved delivery performance drove increased customer satisfaction, culminating in Air Industries receiving the prestigious Northrop Grumman Supplier Excellence award in February 2025 – an honor granted to less than .5% of their 11,000 suppliers." "2024 was also defined by significant long-term contract wins and unprecedented order activity. Our funded backlog, supported by firm customer orders, reached an all-time high, and total backlog now exceeds $250 million. Materials and manufacturing lead times remain long in aerospace, but the increase in backlog positions us for continued progress in 2025. While quarterly results may vary, we believe year-end 2025 results will exceed those of 2024, continuing the positive trend we have established." About Air Industries Group Headquartered in Bay Shore, New York, Air Industries Group (NYSE American: AIRI) is a manufacturer of precision components and assemblies for large aerospace and defense prime contractors. Its products include landing gears, flight controls, engine mounts, and components for aircraft jet engines, ground turbines, and other complex machines. Saddle Brook, New Jersey-based Marcum LLP, the Company's auditor since 2008, issued a "going concern" qualification in its report dated April 15, 2024. The report noted that for the period ending March 31, 2024, the Company was not in compliance with the financial covenants required under the terms of its current credit facility. It is reasonably possible that the Company will not receive a waiver and may fail to meet these financial covenants in future periods. The Company is required to maintain a collection account with its lender into which substantially all of the Company's cash receipts are remitted. If the Company's lender were to cease lending and keep the funds remitted to the collection account, the Company would lack the funds to continue its operations. Failure to receive a waiver or meet the financial covenants in future periods raises substantial doubt about the Company's ability to continue as a going concern. As of September 30, 2024, Air Industries Group had $50.4 million in total assets, $35.7 million in total liabilities, and $14.7 million in total stockholders' equity. ALLEN PAVING: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Allen Paving & Construction, LLC d/b/a Paver Solutions 7900 46th Ave N. Saint Petersburg, FL 33709 Business Description: Allen Paving & Construction, LLC dba Paver Solutions is an outdoor living contractor based in Saint Petersburg, Florida. Founded in 2002, the Company specializes in designing and installing custom paver features for residential and commercial properties. Its services include pool decks, driveways, walkways, patios, fire pits, outdoor kitchens, outdoor lighting, and landscaping. Chapter 11 Petition Date: April 18, 2025 Court: United States Bankruptcy Court Middle District of Florida Case No.: 25-02464 Judge: Hon. Catherine Peek Mcewen Debtor's Counsel: Shawn M. Yesner, Esq. YESNER LAW, PL 2753 State Road 580, Suite 106 Clearwater, FL 33761 Tel: 813-774-5737 Fax: 813-344-0950 E-mail: shawn@yesnerlaw.com Total Assets: $892,619 Total Liabilities: $2,406,131 The petition was signed by Aaron Allen as 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/QQZF7CQ/Allen_Paving__Construction_LLC__flmbke-25-02464__0001.0.pdf?mcid=tGE4TAMA AMERICAN STEAM: Seeks to Hire DeMarco·Mitchell PLLC as Counsel --------------------------------------------------------------- American Steam, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ DeMarco·Mitchell, PLLC as counsel. The firm will provide these services: a. take all necessary action to protect and preserve the Estate, including the prosecution of actions on its behalf, the defense of any actions commenced against it, negotiations concerning all litigation in which it is involved, and objecting to claims; b. prepare on behalf of the Debtor all necessary motions, applications, answers, orders, reports, and papers in connection with the administration of the estate herein; c. formulate, negotiate, and propose a plan of reorganization; d. perform all other necessary legal services in connection with these proceedings; e. formulate, negotiate, and propose a plan of reorganization; and f. perform all other necessary legal services in connection with these proceedings. The firm will be paid at these rates: Robert T. DeMarco, Attorney $400 per hour Michael S. Mitchell, Attorney $300 per hour Barbara Drake, Paralegal $125 per hour The firm received from the Debtor a retainer in the amount of $11,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Robert T. DeMarco, Esq., a partner at Demarco·Mitchell PLLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Robert T. DeMarco, Esq. Michael S. Mitchell, Esq. Demarco Mitchell PLLC 12770 Coit Road, Suite 850 Dallas, TX 75251 Tel: (972) 578-1400 Fax: (972) 346-6791 Email robert@demarcomitchell.com mike@demarcomitchell.com About American Steam, Inc. American Steam Inc. specializes in providing steam and hydronic equipment solutions, including the sale, reconditioning, and rental of boilers, heat exchangers, and thermal fluid heaters. The Company also offers custom metal fabrication for pressure vessels and storage spheres, along with a range of ancillary equipment. Its services extend to preventive maintenance, intelligent combustion control, and emergency support. Founded in 1969, the Company focuses on solving complex heat transfer problems across various industries, emphasizing reliability and efficiency. American Steam Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-41255) on April 7, 2025. In its petition, the Debtor reports total assets of $1,070,810 and total liabilities of $7,019,257. Honorable Bankruptcy Judge Edward L. Morris handles the case. The Debtor is represented by Robert T DeMarco, Esq. at DEMARCO MITCHELL, PLLC. AMERICAN STEAM: Gets Interim OK to Use Cash Collateral ------------------------------------------------------- American Steam, Inc. received interim approval from the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, to use cash collateral. The Debtor needs to use cash collateral to cover ordinary business expenses such as payroll, materials, and other operating costs. Several merchant cash advance lenders assert interests in the cash collateral, which include Favo Funding, LLC, Mulligan Funding, LLC, OnDeck Capital, and United First, LLC. Each lender claims a security interest in substantially all of the Debtor’s personal property, including equipment, inventory, and accounts receivable, as evidenced by UCC-1 financing statements. As protection, the MCA lenders were granted replacement liens on the Debtor's assets, excluding avoidance actions. In addition, the Debtor was ordered to escrow the sum of $2,500 for the benefit of United First pending final approval to use cash collateral. The final hearing is scheduled for April 29. About American Steam Inc. American Steam, Inc. specializes in providing steam and hydronic equipment solutions, including the sale, reconditioning, and rental of boilers, heat exchangers, and thermal fluid heaters. The Company also offers custom metal fabrication for pressure vessels and storage spheres, along with a range of ancillary equipment. Its services extend to preventive maintenance, intelligent combustion control, and emergency support. Founded in 1969, the Company focuses on solving complex heat transfer problems across various industries, emphasizing reliability and efficiency. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-41255) on April 7, 2025. In the petition signed by John Moses, president, the Debtor disclosed $1,070,810 in assets and $7,019,257 in liabilities. Judge Edward L. Morris oversees the case. Robert T. DeMarco, Esq., at DeMarco Mitchell, PLLC, represents the Debtor as legal counsel. ANGELA'S BRIDALS: Gets Final OK to Use Cash Collateral ------------------------------------------------------ Angela's Bridals, Inc. received final approval from the U.S. Bankruptcy Court for the Northern District of New York to use the cash collateral of its secured creditors. The final order authorized the company to use the cash collateral of Pursuit Lending and the U.S. Small Business Administration to pay its expenses in accordance with its budget. As protection, both secured creditors were granted replacement liens in an amount equal to the aggregate diminution in the value of their pre-bankruptcy collateral. In addition, Pursuit Lending and SBA will receive monthly payments of $663.62 and $994.49, respectively. The company's authority to use cash collateral terminates upon occurrence of so-called events of default, including the company's material breach of the terms of the final order; any stay, reversal, vacatur or rescission of the terms of the final order; payments not approved by the secured creditors; actual cash disbursements that vary from the approved budget; the appointment of a Chapter 11 trustee; and dismissal or conversion of its Chapter 11 case to one under Chapter 7. At the time of its Chapter 11 filing, Angela's Bridals had approximately $56,000 in cash and cash equivalents, including accounts receivable, cash on hand, and cash in its various bank accounts. About Angela's Bridals Inc. Angela's Bridals, Inc. operates a brick-and-mortar bridal shop that sells dresses and other accessories. Angela's Bridals filed Chapter 11 petition (Bankr. N.D. N.Y. Case No. 25-10119) on February 4, 2025, listing between $100,001 and $500,000 in assets and between $500,001 and $1 million in liabilities. Janet M. Cooper, president of Angela's Bridals, signed the petition. The Debtor is represented by: Michael Leo Boyle, Esq. Boyle Legal, LLC Tel: 518-407-3121 Email: mike@boylebankruptcy.com APPTECH PAYMENTS: Net Loss Down From $18.5M to $8.9M in 2024 ------------------------------------------------------------ AppTech Payments Corp. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $8.9 million on $0.3 million of revenues for the year ended Dec. 31, 2024, compared to a net loss of $18.5 million on $0.5 million of revenues for the year ended Dec. 31, 2023. San Diego, California-based DBBMcKennon, the Company's auditor since 2014, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has limited revenues and has suffered recurring losses from operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management is actively pursuing additional funding options and is confident that its revenue streams will begin generating revenue in the following 12 months from the issuance date of the financial statements. Management intends to maintain adequate working capital and adhere to prudent financial forecasting. In December 2024, Management began implementing comprehensive expense reduction strategies across the Company's operations to enhance financial stability. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/24ufy5wn About AppTech Payments Corp. Headquartered in Carlsbad, California, AppTech Payments Corp. — www.apptechcorp.com — provides digital financial services for financial institutions, corporations, small and midsized enterprises, and consumers through the Company's scalable cloud-based platform architecture and infrastructure, coupled with its Specialty Payments development and delivery model. AppTech maintains exclusive licensing and partnership agreements in addition to a full suite of patented technology capabilities. As of Dec. 31, 2024, the Company had $8.99 million in total assets, $3.52 million in total liabilities, and a total stockholders' equity of $5.47 million. ARCH PRODUCTION: Seeks Cash Collateral Access Until Sept. 30 ------------------------------------------------------------ ARCH Production and Design, NYC, Inc. asked the U.S. Bankruptcy Court for the Northern District of New York for authority to use cash collateral through September 30. The Debtor seeks to use cash that is subject to prepetition liens, specifically those held by two secured creditors: the Small Business Administration and JPMorgan Chase Bank, N.A. As of the petition date, the Debtor owes approximately $950,000 to the SBA, secured by all of its assets under a loan executed in December 2022. It also owes approximately $180,000 to Chase under a line of credit agreement from October 2024, also secured by all of the Debtor's assets. In order to adequately protect these creditors' interests during the use of cash collateral, the Debtor proposes monthly adequate protection payments of $1,236 to the SBA and $3,400 to Chase, beginning May 1, 2025. A copy of the motion is available at https://urlcurt.com/u?l=YBFQIU from PacerMonitor.com. About ARCH Production and Design, NYC ARCH Production and Design, NYC, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. N.Y. Case No. 25-10390-1) on April 4, 2025. In the petition signed by Evan Collier, president, the Debtor disclosed up to $500,000 in assets and up to $10,000 in liabilities. Mitchell Canter, Esq., at Law Offices of Mitchell J. Canter, represents the Debtor as legal counsel. ASPIRA WOMEN'S: CEO to Receive $400K Annual Base Salary ------------------------------------------------------- Aspira Women's Health Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it signed an employment agreement with Chief Executive Officer Michael Buhle. Pursuant to the terms of an employment agreement, effective on March 26, 2025, the Company will pay Mr. Buhle an annual base salary of $400,000. In addition, Mr. Buhle will be eligible for a bonus of up to 50% of his base salary (prorated for partial years) for achievement of corporate goals to be defined by the Company's Board of Directors. The exact payment terms of such bonus, if any, are to be set by the Compensation Committee of the Board of Directors in its sole discretion. During the term of his employment, Mr. Buhle will also be entitled to the Company's standard benefits covering employees at his level. If Mr. Buhle's employment is terminated without cause or resigns for good reason (as these terms are defined in the Employment Agreement) at any time following the date that is: (a) six months or (b) 12 months following the Effective Date, and provided that he complies with certain requirements (including signing a standard separation agreement release and complying with the non-competition provision in the Employment Agreement), under the Employment Agreement: (a) After six months of employment, continued payment of Executive's base salary as then in effect for a period of three months following the date of termination, to be paid periodically in accordance with the Company's standard payroll practices, provided that you shall immediately repay to the Company any amounts that you receive hereunder if within 60 days following termination of your employment you either have failed to execute the standard release or have revoked the general release after you execute it; and (b) After 12 months of employment, continued payment of Executive's base salary as then in effect for a period of six months following the date of termination, to be paid periodically in accordance with the Company's standard payroll practices, provided that you shall immediately repay to the Company any amounts that you receive hereunder if within 60 days following termination of your employment you either have failed to execute the standard release or have revoked the general release after you execute it; and (c) Continuation of Company health and dental benefits through COBRA premiums paid by the Company directly to the COBRA administrator during the Severance Period; provided, however, that such premium payments shall cease prior to the end of the Severance Period if Executive commences other employment with reasonably comparable or greater health and dental benefits, to be determined in Executive's sole discretion. The Employment Agreement additionally provides that Mr. Buhle will be granted a stock option award with respect to 100,000 shares of Company common stock on, or as soon as administratively practicable, subject to approval by the Compensation Committee of the Board of Directors, and subject to the terms and conditions of the Company's 2019 Stock Incentive Plan and a stock option award agreement in a form substantially similar to that used by the Company for other senior executives of the Company (each such award, an "Option"). Each Option shall have a per share exercise price equal to the closing price per share of Company common stock as of the applicable grant date. The stock options vest monthly over four years from the Effective Date, subject to Mr. Buhle's continued employment with the Company. The Option shall remain exercisable until the earliest to occur of: (i) 90 days from the date of Mr. Buhle's termination of employment, (ii) the date on which the Options would have expired if Mr. Buhle's employment had continued through the full term of the Option and (iii) the date on which Mr. Buhle breaches this Agreement, the PIIA or any other agreement between Mr. Buhle and the Company or any of its affiliates. Additionally, the Employment Agreement provides that if Mr. Buhle's employment is terminated without cause or for good reason within the 12-month period following a change of control (as such term is defined in the Employment Agreement), then, in addition to the benefits above, 100% of any then-unvested options to purchase Company common stock previously granted by the Company will vest upon the date of such termination (subject to earlier expiration at the end of the option's original term). Under the Employment Agreement, Mr. Buhle is subject to a non-solicitation covenant, extending for 12 months following the termination of Mr. Buhle's employment with the Company, as well as a mutual non-disparagement covenant. About Aspira Women's Health Formerly known as Vermillion, Inc., Aspira Women's Health Inc. — http://www.aspirawh.com— is dedicated to the discovery, development, and commercialization of noninvasive, AI-powered tests to aid in the diagnosis of gynecologic diseases. OvaWatch and Ova1Plus are offered to clinicians as OvaSuiteSM. Together, they provide a comprehensive portfolio of blood tests to aid in the detection of ovarian cancer for the 1.2+ million American women diagnosed with an adnexal mass each year. OvaWatch provides a negative predictive value of 99% and is used to assess ovarian cancer risk for women where initial clinical assessment indicates the mass is indeterminate or benign, and thus surgery may be premature or unnecessary. Ova1Plus is a reflex process of two FDA-cleared tests, Ova1 and Overa, to assess the risk of ovarian malignancy in women planned for surgery. Boston, Massachusetts-based BDO USA, P.C., the Company's auditor since 2012, issued a "going concern" qualification in its report dated March 27, 2025, attached to the Company's Form 10-K Report for the year ended December 31, 2024, citing that the Company has suffered recurring losses from operations and expects to continue to incur substantial losses in the future, which raise substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2024, Aspira Women's Health had $5.49 million in total assets, $8.05 million in total liabilities, and a total stockholders' deficit of $2.56 million. The Company's working capital deficit was $1,285,000 at Dec. 31, 2024. ASPIRA WOMEN'S: Lowers Quorum for Stockholder Meetings ------------------------------------------------------ Aspira Women's Health Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Board of Directors approved an amendment of the Company's Amended and Restated Bylaws to change the quorum for stockholder meetings to equal 33.33% of the shares issued and outstanding and entitled to vote on the matters at the meeting. The change to the quorum requirement for stockholder meetings was made to improve the Company's ability to hold stockholder meetings when called. About Aspira Women's Health Formerly known as Vermillion, Inc., Aspira Women's Health Inc. — http://www.aspirawh.com— is dedicated to the discovery, development, and commercialization of noninvasive, AI-powered tests to aid in the diagnosis of gynecologic diseases. OvaWatch and Ova1Plus are offered to clinicians as OvaSuiteSM. Together, they provide a comprehensive portfolio of blood tests to aid in the detection of ovarian cancer for the 1.2+ million American women diagnosed with an adnexal mass each year. OvaWatch provides a negative predictive value of 99% and is used to assess ovarian cancer risk for women where initial clinical assessment indicates the mass is indeterminate or benign, and thus surgery may be premature or unnecessary. Ova1Plus is a reflex process of two FDA-cleared tests, Ova1 and Overa, to assess the risk of ovarian malignancy in women planned for surgery. Boston, Massachusetts-based BDO USA, P.C., the Company's auditor since 2012, issued a "going concern" qualification in its report dated March 27, 2025, attached to the Company's Form 10-K Report for the year ended December 31, 2024, citing that the Company has suffered recurring losses from operations and expects to continue to incur substantial losses in the future, which raise substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2024, Aspira Women's Health had $5.49 million in total assets, $8.05 million in total liabilities, and a total stockholders' deficit of $2.56 million. The Company's working capital deficit was $1,285,000 at Dec. 31, 2024. ATARA BIOTHERAPEUTICS: CFO Eric Hyllengren Departs; New CAO Named ----------------------------------------------------------------- Atara Biotherapeutics, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the employment of Eric Hyllengren, the Chief Financial Officer and Chief Operating Officer of the Company, ended effective March 31, 2025. In connection with Mr. Hyllengren's departure from the Company, Mr. Hyllengren is entitled to receive, subject to a general release in favor of the Company, severance benefits under the terms of his employment agreement, which are described in the compensation disclosures of the Company's Definitive Proxy Statement filed with the SEC on April 26, 2024. Mr. Hyllengren is also entitled to receive his 2024 annual cash bonus at the same time bonuses are paid to eligible employees. In addition, the Company and Mr. Hyllengren entered into a Separation and Consulting Agreement dated March 31, 2025 pursuant to which Mr. Hyllengren will provide consulting services to the Company from March 31, 2025 through July 31, 2025 at an hourly rate. The Separation and Consulting Agreement provides for: (i) Mr. Hyllengren to relinquish to the Company all of Mr. Hyllengren's vested and unvested stock option awards and (ii) the continued vesting during the consulting term of Mr. Hyllengren's outstanding restricted stock unit awards. The Company appointed Yanina Grant-Huerta as the Company's Chief Accounting Officer and principal accounting officer, effective March 31, 2025. Ms. Grant-Huerta, 47, has served as the Company's Vice President of Financial Planning and Analysis since March 2023. Ms. Grant-Huerta joined the Company in April 2020 as Senior Director of Financial Planning and Analysis. Prior to joining the Company in April 2020, Ms. Grant-Huerta spent 13 years at Amgen Inc. holding roles of increasing responsibility in financial planning and analysis. Yanina Grant-Huerta received her Bachelor's degree in Economics from Tecnologico de Monterrey and Master's degree in Statistics from Oklahoma State University. There are no arrangements or understandings between Ms. Grant-Huerta and any other persons pursuant to which Ms. Grant-Huerta was promoted to Chief Accounting Officer. There are no family relationships between Ms. Grant-Huerta and any director, executive officer or any other person nominated or chosen by the Company to become a director or executive officer. There are no related person transactions (within the meaning of Item 404(a) of Regulation S-K promulgated by the Securities and Exchange Commission) between Ms. Grant-Huerta and the Company. About Atara Biotherapeutics Atara Biotherapeutics -- atarabio.com -- is a biotechnology company focused on developing off-the-shelf cell therapies that harness the power of the immune system to treat difficult-to-treat cancers and autoimmune conditions. With cutting-edge science and differentiated approach, Atara is the first company in the world to receive regulatory approval of an allogeneic T-cell immunotherapy. The Company's advanced and versatile T-cell platform does not require T-cell receptor or HLA gene editing and forms the basis of a diverse portfolio of investigational therapies that target EBV, the root cause of certain diseases, in addition to next-generation AlloCAR-Ts designed for best-in-class opportunities across a broad range of hematological malignancies and B-cell driven autoimmune diseases. Atara is headquartered in Southern California. The Company has incurred operating losses since inception and it expects that existing cash, cash equivalents and short-term investments as of Sept. 30, 2024, will not be sufficient to fund its planned operations for at least 12 months from Nov. 12, 2024, the date of issuance of its condensed consolidated financial statements contained in its Quarterly Report for the period ended Sept. 30, 2024. Atara posted a net loss of $276.13 million for the year ended Dec. 31, 2023, following a net loss of $228.30 million for the year ended Dec. 31, 2022. As of Sept. 30, 2024, the Company had $142.71 million in total assets, $233.25 million in total liabilities, and a total stockholders' deficit of $90.54 million. ATTLEBORO REALTY: Updates Unsecured Claims Pay Details ------------------------------------------------------ Attleboro Realty LLC submitted a First Amended Disclosure Statement describing First Amended Plan of Reorganization dated March 20, 2025. The Plan is for the Debtor to reorganize and pay all Allowed Claims. The Plan will be funded with available Cash, and certain Plan Funding. As discussed in the Plan, the Plan Funding will require a mortgage Lien on the Real Property to protect the interest of the Plan funder. Also, subject to Effective Date of the Plan, the Members will enter into a separate agreement, terms of which to be acceptable to both parties, regarding, among other things, purchase by Simoes of the Duarte's membership interest in the Debtor. The Plan proposes to pay Allowed Claims (other than insider/ affiliate related Claims) in full on the Effective Date of the Claim or when Allowed. Class 2 consists of Tax Municipality Secured Claim. In full and complete satisfaction, settlement, release and discharge of the Class 2 Claim, the holder of the Class 2 Claim will receive the amount of such holder’s Allowed Claim in Cash payment on the later of: (i) the Effective Date, and (ii) as soon as practicable after the Priority Tax Claim is Allowed. Notwithstanding the foregoing, a holder of an Allowed Class 2 Claim may receive such other less favorable treatment as may be agreed upon by such holder and the Debtor. Class 3 consists of Building 11 Claim: In full and complete satisfaction, settlement, release and discharge of the Class 3 Claim, the holder of the Class 3 Claim will receive the amount of such holder's Allowed Claim in Cash payment on the later of: (i) the Effective Date, and (ii) as soon as practicable after the Class 3 Claim is Allowed, including interest thereon if ordered by the Bankruptcy Court. In the event the Building 11 Claim is not deemed a Secured Claim, the creditor shall receive distribution as a General Unsecured Claim under Class 6; provided that, there shall be no duplicative recovery for the Building 11 Claim and the Great Eastern Claim. Class 4 consists of the Attleboro Corporate Center Claim. In full and complete satisfaction, settlement, release and discharge of the Class 4 Claim, the holder of the Class 4 Claim will receive the amount of such holder's Allowed Claim in Cash payment on the later of: (i) the Effective Date, and (ii) as soon as practicable after the Class 4 Claim is Allowed. In the event the Building 11 Claim is not deemed a Secured Claim, the creditor shall receive distribution as a General Unsecured Claim under Class 6. Notwithstanding the foregoing, a holder of an Allowed Class 4 Claim may receive such other less favorable treatment as may be agreed upon by such holder and the Debtor. Class 5 consists of the Nexamp Claim. In full and complete satisfaction, settlement, release and discharge of the Class 5 Claim, the holder of the Class 5 Claim will receive, pursuant to consent of the creditor, $80,000.00 on the Effective Date. Notwithstanding the foregoing, a holder of an Allowed Class 5 Claim may receive such other less favorable treatment as may be agreed upon by such holder and the Debtor. Class 6 consists of General Unsecured Claims. In full and complete satisfaction, settlement, release and discharge of the Class 6 Claims, each holder of the Class 6 Claim shall receive the amount of such holder's Allowed Claim in Cash payment on the later of: (i) the Effective Date, and (ii) as soon as practicable after the General Unsecured Claim is Allowed; provided that, there shall be no duplicative recovery for the Building 11 Claim and the Great Eastern Claim; provided further that, insider / affiliate related Claim holders may subordinate payments until after all other General Unsecured Claims are paid. Notwithstanding the foregoing, a holder of an Allowed Class 6 Claim may receive such other less favorable treatment as may be agreed upon by such holder and the Debtor. Upon the Effective Date, Simoes and/or the Debtor will receive certain loan funding from Elias Barreiros, a family member of Simoes, of approximately $1,000,000.00 sufficient to pay all Allowed Claims (the "Plan Funding"). Simoes has agreed to provide the Debtor's counsel with the commitment document(s) for such loan, including repayment terms, and proof of fund before the hearing on the approval of the Disclosure Statement. Such documents may be filed as plan supplement. A full-text copy of the First Amended Disclosure Statement dated March 20, 2025 is available at https://urlcurt.com/u?l=DHwQHB from PacerMonitor.com at no charge. About Attleboro Realty Attleboro Realty LLC sought relief under Chapter 11 of the U.S. Bankruptcy (Bankr. D. Mass. Case No. 24-12070) on Oct. 15, 2024. In the petition filed by Paul Simoes, as authorized representative of the Debtor, the Debtor estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. The Debtor is represented by: Alan L. Braunstein, Esq. RIEMER & BRAUNSTEIN LLP 100 Cambridge Street 22nd Floor Boston, MA 02114 Tel: (617) 523-9000 E-mail: abraunstein@riemerlaw.com AUSTEX AGGREGATES: Gets Interim OK to Use Cash Collateral ---------------------------------------------------------- AusTex Aggregates, LLC received interim approval from the U.S. Bankruptcy Court for the Western District of Texas to use cash collateral. The Debtor, which supplies construction materials such as gravel, fill, and specialty rock, experienced a halt in its operations due to the recent repossession of two critical pieces of equipment by John Deere. The company asserts that it cannot meet ongoing obligations or restart operations without court approval to use existing cash or borrow funds. As of the filing date, the Debtor's liquid assets include approximately $7,582 in cash and $75,863 in accounts receivable, for a total of roughly $83,446 in potential cash collateral. Upon review, the Debtor believes that only the U.S. Small Business Administration, which holds a blanket lien securing a $383,699 loan, has a legitimate interest in this cash collateral. Although other secured creditors—such as John Deere, Equify Financial, Caterpillar Financial, and several Merchant Cash Advance lenders—hold liens on specific equipment, those assets do not currently generate cash collateral. The Debtor has submitted an operating budget covering the period from April 10 through May 14, 2025, which includes routine operating costs and equipment lease payments. However, the budget assumes the return of the repossessed equipment and the ability to generate new revenue and collect outstanding receivables. A final hearing is set for May 6. About AusTex Aggregates LLC AusTex Aggregates, LLC specializes in producing a variety of aggregate products for the construction industry. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-10502) on April 10, 2025. In the petition signed by Chet Fazand , owner and director, the Debtor disclosed $4,145,748 in assets and $2,903,960 in liabilities. Judge Shad Robinson oversees the case. Stephen W Sather, Esq., at BARRON & NEWBURGER, P.C., represents the Debtor as legal counsel. AVALON GLOBOCARE: Reports $7.9 Million Net Loss in 2024 ------------------------------------------------------- Avalon GloboCare Corp. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting net losses of approximately $7.9 million and $16.7 million for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024, the Company had an accumulated deficit of approximately $87.7 million. The Woodlands, TX-based M&K CPAs, PLLC, the Company's auditor since 2024, issued a "going concern" qualification in its report dated Mar. 31, 2024, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has yet to achieve profitable operations, has negative cash flows from operating activities, and is dependent upon future issuances of equity or other financings to fund ongoing operations all of which raises substantial doubt about its ability to continue as a going concern. The Company has a limited operating history, and its continued growth is dependent upon the continuation of generating rental revenue from its income-producing real estate property in New Jersey and obtaining additional financing to fund future obligations and pay liabilities arising from normal business operations. In addition, the current cash balance cannot be projected to cover the operating expenses for the next twelve months from the release date of this report. These matters raise substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's ability to raise additional capital, implement its business plan, and generate significant revenue. There are no assurances that the Company will be successful in its efforts to generate significant revenue, maintain sufficient cash balance or report profitable operations or to continue as a going concern. The Company plans on raising capital through the sale of equity to implement its business plan. However, there is no assurance these plans will be realized and that any additional financings will be available to the Company on satisfactory terms and conditions, if any. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/bdzn7vdx About Avalon Globocare Headquartered in Freehold, New Jersey, Avalon GloboCare Corp. — http://www.avalon-globocare.com/— is a commercial-stage company dedicated to developing and delivering innovative, transformative precision diagnostics and clinical laboratory services. Avalon is working to establish a leading role in the innovation of diagnostic testing, utilizing proprietary technology to deliver precise, genetics-driven results. The Company also provides laboratory services, offering a broad portfolio of diagnostic tests, including drug testing, toxicology, and a broad array of test services, from general bloodwork to anatomic pathology, and urine toxicology. As of Dec. 31, 2024, the Company had $21 million in total assets, $13.9 million in total liabilities, and a total equity of $7.1 million. B.G.P. INC: Gets Extension to Access Cash Collateral ---------------------------------------------------- B.G.P., Inc. and its affiliates received third interim approval from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to use cash collateral. The third interim order signed by Judge Roberta Colton authorized the companies to use cash collateral to pay the expenses set forth in their projected budget, plus an amount not to exceed 10% for each line item. As protection, DWB Holdings Group, LLC and other creditors with interest in the cash collateral were granted a replacement lien on the cash collateral and all other post-petition assets of the companies, to the same extent and with the same validity and priority as their pre-bankruptcy lien. In addition, the companies were ordered to keep their property insured in accordance with the obligations under the loan and security documents with the lender. A further hearing is scheduled for May 22. About B.G.P. Inc. B.G.P., Inc. and its affiliates, BGP Warehouse Indiana, LLC and B.G.P. Stores, LLC, filed Chapter 11 petitions (Bankr. M.D. Fla. Lead Case No. 25-00412) on January 23, 2025. At the time of the filing, B.G.P., Inc. reported between $10 million and $50 million in both assets and liabilities. Judge Roberta A. Colton oversees the cases. Scott A. Stichter, Esq., at Stichter, Riedel, Blain & Postler, P.A. is the Debtors legal counsel. DWB Holdings Group, LLC, as lender, is represented by: Edward J. Peterson, Esq. Johnson Pope Bokor Ruppel & Burns, LLP 400 N. Ashley Drive, Suite 3100 Tampa, FL 33602 Telephone: (813) 225-2500 Email: edwardp@jpfirm.com BASEL SALAMA: Hires Rank & Karnes Law P.C. as Attorney ------------------------------------------------------ Basel Salama Hils seeks approval from the U.S. Bankruptcy Court for the District of Oregon to employ Rank & Karnes Law, P.C. as Attorney. The firm will provide these services: a. advise Debtor with respect to his powers and duties as a debtor-in-possession in the continued management and operation of financial affairs; b. attend meetings and negotiate with representatives of creditors and other parties in interest; c. take necessary action to protect and preserve Debtor's bankruptcy estate, including: the prosecution of actions on Debtor's behalf; the defense of actions commenced against Debtor; negotiations concerning litigation in which Debtor is involved, and objections to claims filed against the estate; d. prepare on Debtor's behalf motions, applications, answers, orders, reports, and papers necessary to the administration of the estate; e. negotiate and prepare on Debtor's behalf a plan of reorganization, and all related agreements and/or documents, and take necessary action on Debtor's behalf to obtain confirmation of such plan; f. represent Debtor in connection with obtaining financing, if any; g. advise Debtor in connection with the sale of assets, if any; h. appear before the Bankruptcy Court and protect the interests of Debtor's estate before such court; and i. perform other necessary legal services and provide other necessary legal advice to Debtor generally and in connection with this Chapter 11 case. The firm will be paid at these rates: Attorneys $400 per hour Paralegal $175 per hour The Debtor paid the firm a retainer of $5,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Karnes disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Keith D. Karnes, Esq. Rank & Karnes Law, P.C. 2701 12th St SE Salem, OR 97302 Tel: (503) 385-8888 Fax: (503) 385-8899 Email: keith@rankkarneslaw.com About Basel Salama Hils Basel Salama Hils, filed a Chapter 11 bankruptcy petition (Bankr. D. Or. Case No. 25-30672) on March 3, 2025. The Debtor hires Rank & Karnes Law, P.C. as counsel. BEECH INTERNATIONAL: Gets Extension to Access Cash Collateral ------------------------------------------------------------- Beech International, LLC received interim approval from the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to use cash collateral until April 30, marking the eight extension since the company's Chapter 11 filing. The court's previous interim order issued on April 11 allowed the company to access cash collateral until April 19 only. The latest order signed by Judge Ashely Chan authorized the company to use cash collateral (except those cash held by UMB Bank, National Association in reserves) from April 18 until April 30 or until the occurrence of a termination event such as the entry of a subsequent cash collateral order; the appointment of a Chapter 11 trustee or examiner; the conversion of the company's Chapter 11 case to one under Chapter 7; or the filing by the company of a motion to obtain financing secured by liens senior to the liens in favor of UMB Bank. As protection, each creditor with an interest in the cash collateral was granted replacement lien on all property of the company acquired after its bankruptcy filing, excluding proceeds of actions commenced under Chapter 5 of the Bankruptcy Code. A final hearing is scheduled for April 29. About Beech International Beech International, LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Beech International filed Chapter 11 petition (Bankr. E.D. Pa. Case No. 24-14406) on December 10, 2024, listing between $10 million and $50 million in both assets and liabilities. Ken Scott, chief executive officer of Beech International, signed the petition. Judge Ashely M. Chan handles the case. Robert Lapowsky, Esq., at Stevens & Lee, P.C. is the Debtor's legal counsel. UMB Bank, N.A., as secured creditor, is represented by: Tobey M. Daluz, Esq. Margaret A. Vesper, Esq. Ballard Spahr, LLP 1735 Market Street, 51st Floor Philadelphia, PA 19103 Tel: (215) 864-8148 Facsimile: (215) 864-8999 daluzt@ballardspahr.com vesperm@ballardspahr.com -- and -- William P. Wassweiler, Esq. Ballard Spahr, LLP 2000 IDS Center 80 South 8th Street Minneapolis, MN 55402-2119 Telephone: (612) 371-3289 Facsimile: (612) 371-3207 wassweilerw@ballardspahr.com BELLWETHER INC: Gets Final OK to Use Cash Collateral ---------------------------------------------------- Bellwether, Inc. received final approval from the U.S. Bankruptcy Court for the Northern District of Georgia to use its secured creditors' cash collateral. The final order authorized the company to use the cash collateral of Ameris Bank, U.S. Bank National Association and the U.S. Small Business Administration to fund the expenses set forth in its budget. As protection, the secured creditors were granted replacement liens on assets similar to their pre-bankruptcy collateral. In addition, Ameris Bank and SBA will receive a monthly payment of $1,000 while U.S. Bank will receive a monthly payment of $2,000 as further protection. The occurrence or existence of any of the following events constitute an event of default: (i) the conversion or dismissal of Bellwether's Chapter 11 case; (ii) the appointment of an examiner or a trustee with expanded powers in the case; and (iii) the company's failure to comply with the final order. About Bellwether Inc. Bellwether, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-56852) on July 1, 2024, with as much as $1 million in both assets and liabilities. Judge Lisa Ritchey Craig oversees the case. The Debtor is represented by: Joseph Chad Brannen, Esq. The Brannen Firm, LLC Tel: 770-474-0847 Email: chad@brannenlawfirm.com BEST CHOICE: Gets Interim OK to Use Cash Collateral --------------------------------------------------- Best Choice Trucking, LLC got the green light from the U.S. Bankruptcy Court for the District of Massachusetts to use cash collateral. The order penned by Judge Christopher Panos approved the company's interim use of cash collateral, including pre-bankruptcy accounts receivable and cash on hand, to pay the expenses set forth in its 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. The next hearing is scheduled for May 6. Objections are due by May 5. About Best Choice Trucking Best Choice Trucking, LLC is a Massachusetts-based freight carrier specializing in full truckload services, including motor vehicle transportation and last-mile delivery. Best Choice Trucking LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-10704) on April 7, 2025. In its petition, the Debtor reports total assets of $1,295,445 and total liabilities of $3,206,429 Honorable Bankruptcy Judge Christopher J. Panos handles the case. The Debtor is represented by: Peter M. Daigle The Law Office Of Peter M. Daigle, P. C. Tel: 508-771-7444 Email: pmdaigleesq@yahoo.com BEST CHOICE: Hires Law Office of Peter M. Daigle as Attorney ------------------------------------------------------------ Best Choice Trucking, LLC seeks approval from the U.S. Bankruptcy Court for the District of Massachusetts to employ The Law Office of Peter M. Daigle as attorney. The firm's services include: a) assisting and advising the Debtor relative to the administration of this proceeding; b) representing the Debtor before the Bankruptcy Court and advising the Debtor on all pending litigations, hearings, motions, and of the decisions of the Bankruptcy Court; c) reviewing and analyzing all applications, orders, and motions filed with the Bankruptcy Court by third parties in this proceeding and advising the Debtor thereon; d) attending all meetings conducted pursuant to section 341(a) of the Bankruptcy Code and representing the Debtor at all examinations; e) communicating with creditors and all other parties in interest; f) assisting the Debtor in preparing all necessary applications, motions, orders, supporting positions taken by the Debtor, and preparing witnesses and reviewing documents in this regard; g) conferring with all other professionals, including any accountants and consultants retained by the Debtor and by any other party in interest; h) assisting the Debtor in its negotiations with creditors or third parties concerning the terms of any proposed plan of reorganization; i) preparing, drafting and prosecuting the plan of reorganization and disclosure statement; and j) assisting the Debtor in performing such other services as may be in the interest of the Debtor and the Estate and performing all other legal services required by the Debtor. The firm will be paid at these rates: Senior Attorneys $450 per hour Associate Attorneys $325 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Peter M. Daigle, Esq., a partner at Law Office of Peter M. Daigle, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Peter M. Daigle, Esq. Law Office of Peter M. Daigle 1550 Falmouth Road, Suite 10 Centerville, MA 02632 Tel: (508) 771-7444 Fax: (508) 771-8286 Email: pmdaigleesq@yahoo.com About Best Choice Trucking, LLC Best Choice Trucking LLC is a Massachusetts-based freight carrier specializing in full truckload services, including motor vehicle transportation and last-mile delivery. Best Choice Trucking LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-10704) on April 7, 2025. In its petition, the Debtor reports total assets of $1,295,445 and total liabilities of $3,206,429. Honorable Bankruptcy Judge Christopher J. Panos handles the case. The Debtor is represented by Peter M. Daigle, Esq. at DAIGLE LAW OFFICE. BETTER 4 YOU: Loses Bid to Appeal Intrepid Summary Judgment Ruling ------------------------------------------------------------------ Judge Sheri Bluebond of the United States Bankruptcy Court for the Central District of California denied the motion of Better 4 You Breakfast, Inc. to extend time to file a notice of appeal of an order granting Intrepid Investment Bankers LLC's motion for summary judgment pursuant to Federal Rule of Bankruptcy Procedure 8002(d)(1)(B). On March 6, 2025, the Court entered its order and judgment in favor of defendant Intrepid Investment Bankers LLC granting its motion for summary judgment against plaintiff Better 4 You Breakfast, Inc. Pursuant to Federal Rule of Bankruptcy Procedure 8002(a)(1), the deadline to file a notice of appeal was 14 days later -- March 20, 2025. Movant failed to file a notice of appeal by that deadline. Instead, counsel filed a notice of appeal on April 2, 2025 -- 13 days after the appeal period had expired (two amended notices of appeal were subsequently filed on April 3, 2025, to correct various technical defects). Movant now seeks an extension of time under Rule 8002(d)(1)(B), under which a court may permit a late-filed notice of appeal upon a showing of excusable neglect. Federal Rule of Bankruptcy Procedure 8002(d)(1)(B) permits a court to authorize an extension of the 14-day appeal deadline if the notice of appeal was not timely filed as a result of excusable neglect. The Supreme Court in Pioneer Inv. Servs. Co. v. Brunswick Assocs. Ltd. P'ship, 507 U.S. 380 (1993), directed courts to consider four factors in evaluating whether movant has met the required standard: (1) the danger of prejudice to the non-moving party; (2) the length of the delay and its potential impact on judicial proceedings: (3) the reason for the delay, including whether it was within the reasonable control of the movant: and (4) whether the movant acted in good faith. While the Movant appears to have acted in good faith and the delay was not extensive, the Court concludes that the reason for the delay -- counsel's failure to apply the correct and plainly-stated procedural rule -- was entirely within the reasonable control of Movant's counsel. As such, the Court, in the exercise of its discretion, finds that the overall balance of the Pioneer factors does not support a finding of excusable neglect on these facts. A copy of the Court's decision is available at https://urlcurt.com/u?l=S7Ijy8 from PacerMonitor.com. About Better 4 You Breakfast Better 4 You Breakfast, Inc., is a school meal vendor based in Los Angeles, Calif. Better 4 You Breakfast sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-10994) on Feb. 24, 2022, listing as much as $50 million in both assets and liabilities. Fernando Castillo, president, signed the petition. Judge Sheri Bluebond oversees the case. The Debtor tapped Daniel A. Tilem, Esq., at the Law Offices of David A. Tilem as bankruptcy counsel; Felahy Employment Lawyers, APC and Steptoe & Johnson, LLP as special counsels; and Stout Capital, LLC as investment banker. James Wong, a principal at Armory Consulting Co., serve as the Debtor's chief restructuring officer. The U.S. Trustee for Region 16 appointed an official committee of unsecured creditors on April 18, 2022. Brinkman Law Group, PC and Province, LLC serve as the committee's legal counsel and financial advisor, respectively. BETTER CHOICE: Net Loss Down From $22.8M to $168K in 2024 --------------------------------------------------------- Better Choice Company Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $168,000 available to common stockholders for the year ended Dec. 31, 2024, compared to a net loss of $22.8 million available to common stockholders for the year ended Dec. 31, 2023. Tampa, Fla.-based Marcum LLP, the Company's auditor since 2024, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has incurred significant losses and has an accumulated deficit and may need to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Better Choice said, "We have experienced recurring operating losses, have a significant accumulated deficit, and we expect to continue to generate operating losses and consume cash resources in the near term. Without generating sufficient cash flow from operations or additional debt or equity financing, these conditions raise substantial doubt about our ability to continue as a going concern, meaning that we may be unable to continue operations for the foreseeable future or realize assets and discharge liabilities in the ordinary course of operations. If we need to seek additional financing to fund our business activities in the future and there remains doubt about our ability to continue as a going concern, investors or other financing sources may be unwilling to provide additional funding on commercially reasonable terms or at all. If we are unable to obtain sufficient funding, our business, prospects, financial condition and results of operations will be materially and adversely affected and we may be unable to continue as a going concern. If we are unable to continue as a going concern, we may have to liquidate our assets and may receive less than the value at which those assets are carried on our consolidated financial statements, and it is likely that investors will lose all or a part of their investment." "Our fourth quarter results built on the momentum we saw during the third quarter and exceeded our internal projections across all key financial metrics," commented Chief Executive Officer, Kent Cunningham. "The most encouraging for me was the 26% sales growth in the fourth quarter we achieved year-over-year driven notably by a 32% increase across Chewy and Amazon platforms. Combined with continued year-over-year expansion in our gross margin to 36% for the quarter, this gives us continued confidence in our strategy and our team's ability to drive sustained, profitable growth going forward." Nina Martinez, Chief Financial Officer, also commented, "Our fourth quarter revenue growth achievement year-over-year, along with 80% year-over-year improvement to our adjusted EBITDA loss, reflects our unwavering focus on driving sustainable, profitable growth. In addition to achieving a 36% gross margin, we successfully reduced short-term obligations, generating a $6.2 million gain and transitioning to a healthy working capital position of $7.9 million. These results, combined with four consecutive quarters of improved gross margin and three straight quarters of net loss improvement, strengthen our confidence in our ability to achieve profitability through operational leverage in 2025." A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/2hh5952f About Better Choice Better Choice Company Inc. is headquartered in Tampa, Florida, and focuses on pet health and wellness. The company is known for its premium pet products under the Halo brand, including Halo Holistic, Halo Elevate, and the rebranded TruDog products. As of Dec. 31, 2024, the Company had $15.8 million in total assets, $7.2 million in total liabilities, and a total stockholders' equity of $8.6 million. BETTER CHOICE: Stockholders OK Name Change to SRX Health Solutions ------------------------------------------------------------------ Better Choice Company Inc. held a Special Meeting of Stockholders to consider and vote on three proposals, each of which is described in greater detail in the Company's definitive proxy statement filed with the Securities and Exchange Commission on January 28, 2025. Of the 1,980,099 shares of the Company's common stock outstanding as of the record date, 1,419,942 shares, or 71.71%, were present virtually or represented by proxy at the Special Meeting. At the Meeting: 1) the vote to the change of the legal name of Better Choice from "Better Choice Company, Inc." to "SRX Health Solutions, Inc." and of the NYSE ticker symbol from "BTTR" to "SRXH" was approved. 2) the vote to approve the issuance of up to 30,000,000 shares of Better Choice common stock in connection with a proposed arrangement with SRx Health Solutions, Inc., a corporation organized under the laws of the Province of Ontario, pursuant to which Better Choice will acquire SRx, in accordance with the requirements of the NYSE American was approved. 3) the vote to approve an increase in the number of securities subject to the Better Choice Company, Inc. 2019 Incentive Award Pla was approved. 4) the vote to approve the postponement or adjournment of the Special Meeting to solicit additional proxies if there are not sufficient votes to approve the Arrangement Proposal and/or the Plan Proposal, if deemed necessary or appropriate by the Better Choice Board was approved. About Better Choice Better Choice Company Inc. is headquartered in Tampa, Florida, and focuses on pet health and wellness. The company is known for its premium pet products under the Halo brand, including Halo Holistic, Halo Elevate, and the rebranded TruDog products. Tampa, Fla.-based Marcum LLP, the Company's auditor since 2024, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has incurred significant losses and has an accumulated deficit and may need to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $15.8 million in total assets, $7.2 million in total liabilities, and a total stockholders' equity of $8.6 million. BIA SEPARATIONS: Executives Want Chapter 15 Paused -------------------------------------------------- Emlyn Cameron of Law360 reports that the executives of BIA Separations, the U.S. subsidiary of an Austrian biotechnology firm, have asked a Delaware bankruptcy judge to postpone Chapter 15 recognition for the foreign company until a ruling is made on their bid to remove the trustee who initiated the U.S. bankruptcy case. About BIA Separations Gesellschaft fr Separationstechnol BIA Separations is a developer and manufacturer of CIM (Convective Interaction Media) monolithic chromatographic columns, primarily used in the production and purification of biopharmaceuticals, including monoclonal antibodies and vaccines. The Company's proprietary CIM technology offers efficient and scalable solutions for bioseparation processes. BIA Separations Gesellschaft fr Separationstechnol sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10465) on March 14, 2025. Foreign Representative is Mag. Michael Wagner, represented by Jeffrey J. Lyons, Esq., at BAKER & HOSTETLER LLP, in Wilmington, Delaware. BIOLINERX LTD: Losses Narrow to $9.2 Million in 2024 ---------------------------------------------------- BioLineRx Ltd. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a comprehensive loss of $9.2 million on $28.9 million of total revenues for the year ended Dec. 31, 2024, compared to a comprehensive loss of $60.6 million on $4.8 million of total revenues for the year ended Dec. 31, 2023. Tel Aviv, Israel-based Kesselman & Kesselman, the Company's auditor since 2003, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 20-F for the year ended Dec. 31, 2024, citing that the Company the Company has suffered recurring losses from operations and has cash outflows from operating activities that indicate that a material uncertainty exists that may cast significant doubt (or raise substantial doubt as contemplated by PCAOB standards) about its ability to continue as a going concern. The Company has incurred accumulated losses in the amount of $400 million through December 31, 2024, and it expects to continue incurring losses and negative cash flows from operations until the cash flows from its strategic partnerships reach a level to offset its ongoing development costs. In this regard, Company management monitors rolling forecasts of the Company's liquidity reserves on the basis of anticipated cash flows and seeks to maintain liquidity balances at levels that are sufficient to meet its needs. Following the out-licensing transaction, the equity investment, and the debt repayment and restructuring agreements entered into in November 2024, as well as the registered direct offering entered into in January 2025. Management believes that the Company's current cash and other resources will be sufficient to fund its projected cash requirements through the second half of 2026. The Company's cash flow projections are subject to various risks and uncertainties concerning their fulfilment. Management's plans include the realization of capital inflows from its strategic partnerships and, if and when required, raising capital through the issuance of debt or equity securities. There are no assurances, however, that the Company will be successful in obtaining the level of financing needed for its operations. If the Company is unsuccessful in realizing the potential cash flows from its strategic partnerships and/or in raising capital, it may need to reduce activities, or curtail or cease operations. A full-text copy of the Company's Form 20-F is available at: https://tinyurl.com/mr4xrv9n About BioLineRx Ltd. Headquartered in Modi'in, Israel, BioLineRx is a commercial-stage biopharmaceutical company focused on developing life-changing therapies in oncology and rare diseases. As of Dec. 31, 2024, the Company had $38.9 million in total assets, $25.4 million in total liabilities, and a total equity of $13.5 million. BISHOP OF OAKLAND: Committee Hires Stout Risius as Consultant ------------------------------------------------------------- The official committee of unsecured creditors of The Roman Catholic Bishop of Oakland seeks approval from the U.S. Bankruptcy Court for the Northern District of California to employ Stout Risius Ross, LLC as real estate consultant. The firm's services include: (i) provide expert analysis and valuation of real property titled in the name of the Debtor, as well as the Debtor's affiliates; (ii) perform all necessary due diligence, background investigation and preparation, including, for example, examination of comparable properties, that is customarily associated with the valuation of real property in order to determine the market value and liquidation value for the properties; (iii) review and evaluate real estate reports prepared by or on behalf of the Debtor, its professionals or any other entities; (iv) prepare and draft expert reports, rebuttal reports and affidavits/declarations concerning the issues for which Stout is being engaged; (v) prepare for and provide both deposition and court testimony regarding the issues for which Stout is being engaged; and (vi) provide any other services that the Applicant deems necessary related to real estate valuation. The firm will be paid at these rates: Managing Director $450 to $675 per hour Director $325 to $450 per hour Senior Vice President $300 to $400 per hour Vice President $225 to $325 per hour Associate $200 to $275 per hour Analyst $150 to $225 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Rosen disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Randi Rosen Stout Risius Ross, LLC 1 S. Wacker Dr. Chicago, IL 60606 Telephone: (312) 546-3426 Email: kmcnally@stout.com About The Roman Catholic Bishop of Oakland The Roman Catholic Bishop of Oakland, a tax-exempt religious organization, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-40523) on May 8, 2023. In the petition signed by Bishop Michael Charles Barber, the Debtor disclosed $100 million to $500 million in both assets and liabilities. Judge William J. Lafferty oversees the case. The Debtor tapped Foley & Lardner LLP as legal counsel and Alvarez & Marsal North America, LLC as restructuring advisor. Kurtzman Carson Consultants LLC is the Debtors' claims and noticing agent and administrative advisor. The U.S. Trustee for Region 17 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee tapped Lowenstein Sandler, LLP as bankruptcy counsel; Burns Bair LLP as special insurance counsel; and Berkeley Research Group, LLC as financial advisor. BLABLMBTQ LLC: Case Summary & 12 Unsecured Creditors ---------------------------------------------------- Debtor: BLABLMBTQ, LLC Bella and Bloom Boutique Bella and Bloom Boutique, LLC 104 Long Wood Cv Lakeway, TX 78734-4643 Business Description: BLABLMBTQ, LLC, doing business as Bella and Bloom Boutique, is an online and physical retail company that offers women's apparel and fashion accessories. The Company operates through its e-commerce platform and a storefront in Texas. Chapter 11 Petition Date: April 18, 2025 Court: United States Bankruptcy Court Western District of Texas Case No.: 25-10545 Judge: Hon. Shad Robinson Debtor's Counsel: Stephen W Sather, Esq. BARRON & NEWBURGER, P.C. 7320 N. MoPac Expressway 400 Austin TX 78731 Tel: (512) 649-3243 E-mail: ssather@bn-lawyers.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Katlyn Maupin as owner/managing member. A full-text copy of the petition, which includes a list of the Debtor's 12 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/LRG3ILY/BLABLMBTQ_LLC__txwbke-25-10545__0001.0.pdf?mcid=tGE4TAMA BLOCKFI INC: Claims Objection Order in Tubergen Suit Affirmed ------------------------------------------------------------- In the appealed case styled as JOHN W. VAN TUBERGEN, JR., Appellant, v. BLOCKFI, INC., Appellee, Case No. 24-cv-06404-ZNQ (D.N.J.), Judge Zahid N. Quraishi of the United States District Court for the District of New Jersey ruled on the two submissions filed by Appellant-Claimant John W. Van Tubergen Jr.: (1) an appeal of the Bankruptcy Court's Orders Granting Wind-Down Debtors' Seventh Omnibus Objection to Claim No. 7233 and Denying Appellant's Motion for Reconsideration; and (2) a Motion to Stay those Orders pending the outcome of the Appeal. In April 2019, Appellant opened a depository account with BlockFi Lending and sought a series of loans. The parties executed a total of thirty-seven loan security agreements ("LSA" in the singular, or "LSAs" in the plural) throughout the course of their relationship, during which Appellant borrowed approximately $40 million from BlockFi. Each of the LSAs require Appellant to pledge a specified amount of cryptocurrency -- either Bitcoin ("BTC") or Ethereum ("ETH") -- as collateral securing the loan. The LSAs also provide that Appellant was to maintain a loan-to-value ratio such that the outstanding principal balance of each loan was less than or equal to a specified percentage of the value of the collateral. Failure to pledge additional collateral after a margin call constitutes default under the LSAs. BlockFi would send out email notices to borrowers like Appellant in the event that the LTV ratios surpassed the applicable Triggering Point. After entering into the LSAs, Appellant's loans reached their Triggering Points on multiple occasions. As a result, pursuant to the LSAs, BlockFi issued margin calls and Appellant was required to post additional collateral to avoid liquidation. Appellant did not timely reply to the margin calls and BlockFi liquidated the collateral. After BlockFi filed for bankruptcy, on March 15, 2023, Appellant filed a proof of claim (Claim Number 7233) in an amount of $10 million for the collateral that is owed to him from his] loans due to false force[d] liquidations from BlockFi. Appellant claims wrongful and improper liquidations in connection with seven of his thirty-seven loans. On Aug. 3, 2023, BlockFi filed its Seventh Omnibus Objection to Certain Claims. In part, the objection sought to modify Appellant's Claim to align with BlockFi's books and records, which valued Appellant's claim as $19.07 based on his account balance in his BlockFi loan account. On Sept. 13, 2023, Appellant filed his response challenging the Seventh Omnibus Objection and re-asserting that his claim value is $10 million. On Jan. 16, 2024, the Bankruptcy Court held an evidentiary hearing and thereafter issued its decision granting the objection and fixing Appellant's claim to $19.07. The Bankruptcy Court held that the plain language of the LSAs provide that BlockFi could make a determination as to the market value of the collateral "in its own reasonable discretion," and that there was no support for Van Tubergen's methodology for calculating the LTV. Regarding the missing ETH, the Bankruptcy Court found that Van Tubergen offered no evidence indicating that he ever deposited, transferred, or otherwise supplied that ETH to his account, whereas BlockFi offered evidence to contradict Van Tubergen's theory. The Bankruptcy Court also found that the plain language of the LSAs provide that BlockFi could liquidate certain loans without giving notice and that BlockFi provided notice for all liquidations of Van Tubergen's collateral that it needed to. Thereafter, Appellant filed a Motion for Reconsideration pursuant to Bankruptcy Rules 3008, 8002, 8007, 9023 and 9024. On April 25, 2024, the Bankruptcy Court again held a hearing. On May 16, 2024, the Bankruptcy Court denied the Motion for Reconsideration, ultimately concluding that it provided no basis for reconsideration. This appeal followed. Appellant raises six issues on appeal: (1) whether the Bankruptcy Court erred by failing to find or consider what Appellant believes to be the actual value of the collateral for purposes of determining the reasonableness of the LTV calculations and whether "Triggering Events" under the LSAs had in-fact transpired prior to the disputed liquidations of Appellant's collateral; (2) whether the Bankruptcy Court erred in not applying Michigan law to deny or limit enforceability of various clauses in the LSAs; (3) whether the Bankruptcy Court abused its discretion by permitting BlockFi to have liquidated collateral beyond what was necessary to establish the "Required LTV" under the LSAs; (4) whether the Bankruptcy Court abused its discretion by not requiring BlockFi to produce pre-liquidation notices required under the LSAs; (5) whether the Bankruptcy Court abused its discretion by not crediting Appellant's reasonable reliance on statements made by BlockFi's representatives in connection with Loan No. 558207a5; and (6) whether the Bankruptcy Court abused its discretion by accepting BlockFi's argument that key terms of the LSA for Loan No. 1a118e43 were the product of scrivener's error. The District Court agrees with the Bankruptcy Court that BlockFi's calculations were permissible and reasonable. The District Court also finds it unnecessary to delve further into the applicability of Michigan law. Simply put, Van Tubergen cannot present a claim under Michigan law and an analysis under Michigan law at this time would be a futile exercise. On de novo review, the District Court finds that the Bankruptcy Court did not err in its finding that there was no breach of the LSAs or in its non-application of Michigan law. The District Court further finds the Bankruptcy Court did not abuse its discretion by allowing BlockFi to liquidate collateral beyond what was necessary. It simply gave effect to the clear terms of the LSAs and committed no error. Notably, and fatal to Appellant's claim on appeal is that there is no evidence in the Appellate Record that BlockFi failed to provide notice to Appellant in a way that violated the terms of the LSAs. Appellant's argument that the Bankruptcy Court abused its discretion by not requiring BlockFi to produce pre-liquidation notices is not supported by the Appellate Record, the District Court finds. The District Court concludes the Bankruptcy Court did not err in failing to credit Appellant's belief that his collateral was safe from liquidation. The District Court will affirm-in-part and remand-in-part the Bankruptcy Court's Order Granting Wind-Down Debtors' Seventh Omnibus Objection as follows: (i) This matter will be remanded for further findings by the Bankruptcy Court as to Appellant's entitlement to the purportedly missing ETH. (ii) the Bankruptcy Court's Orders Granting Wind-Down Debtors' Seventh Omnibus Objection to Claim No. 7233 and Denying Appellant's Motion for Reconsideration will otherwise be affirmed. (iii) Additionally, Appellant's Motion to Stay will be denied as moot. A copy of the Court's decision dated April 14, 2025, is available at https://urlcurt.com/u?l=9p0quv from PacerMonitor.com. About BlockFi Inc. BlockFi Inc. says it's building a bridge between digital assets and traditional financial and wealth management products to advance the overall digital asset ecosystem for individual and institutional investors. BlockFi was founded in 2017 by Zac Prince and Flori Marquez and in its early days had backing from influential Wall Street investors like Mike Novogratz and, later on, Valar Ventures, a Peter Thiel-backed venture fund as well as Winklevoss Capital, among others. BlockFi made waves in 2019 when it began providing interest-bearing accounts with returns paid in Bitcoin and Ether, with its program attracting millions of dollars in deposits right away. BlockFi grew during the pandemic years and had offices in New York, New Jersey, Singapore, Poland and Argentina. BlockFi worked with FTX US after it took an $80 million hit from the bad debt of crypto hedge fund Three Arrows Capital, which imploded after the TerraUSD stablecoin wipeout in May 2022. BlockFi had significant exposure to the companies founded by former FTX Chief Executive Officer Sam Bankman-Fried. BlockFi received a $400 million credit line from FTX US in an agreement that also gave FTX the option to acquire BlockFi through a bailout orchestrated by Bankman-Fried over the summer. BlockFi also had collateralized loans to Alameda Research, the trading firm co-founded by Bankman-Fried. BlockFi is the latest crypto firm to seek bankruptcy amid a prolonged slump in digital asset prices. Lenders Celsius Network LLC and Voyager Digital Holdings Inc. also filed for court protection this year. Kirkland & Ellis is also advising Celsius and Voyager in their separate Chapter 11 cases. BlockFi Inc. and eight affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 22-19361) on Nov. 28, 2022. In the petitions signed by their chief executive officer, Zachary Prince, the Debtors reported $1 billion to $10 billion in both assets and liabilities. Judge Michael B. Kaplan oversees the cases. The Debtors tapped Kirkland & Ellis and Haynes and Boone, LLP, as general bankruptcy counsels; Walkers (Bermuda) Limited as special Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley Research Group, LLC as financial advisor; Moelis & Company as investment banker; and Street Advisory Group, LLC, as strategic and communications advisor. Kroll Restructuring Administration, LLC, is the notice and claims agent. BLUE LINE: Reports $241,741 Net Income in 2024 ---------------------------------------------- Blue Line Protection Group, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net income of $241,741 for the year ended Dec. 31, 2024, compared to a net income of $351,181 for the year ended Dec. 31, 2023. The Woodlands, Texas-based M&K CPAs, PLLC, the Company's auditor since 2019, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has an accumulated deficit and a working capital deficiency as of Dec. 31, 2024, which raises substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2024, the Company had an accumulated deficit of $11,372,836. In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company is significantly dependent upon its ability, and will continue to attempt, to secure additional equity and/or debt financing. There are no assurances that the Company will be successful in obtaining additional capital. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/2r54prjb About Blue Line Blue Line Protection Group, Inc., headquartered in Denver, Colorado, specializes in armed protection and transportation, currency processing, and training and compliance services tailored for the legal cannabis industry. For the year ended December 31, 2023, the company's revenue breakdown was approximately 45% from transportation services, 54% from currency processing, and 1% from training and compliance services. As of Dec. 31, 2024, the Company had $1,355,101 in total assets, $1,988,259 in total liabilities, and a total stockholders' deficit of $633,158. BOOST NEWCO: Moody's Puts 'Ba3' CFR Under Review for Upgrade ------------------------------------------------------------ Moody's Ratings placed the credit ratings of Boost Newco Borrower, LLC (dba Worldpay) under review for upgrade, including the Ba3 corporate family rating, Ba3-PD probability of default rating, and Ba3 ratings on the senior secured bank credit facilities and senior secured notes. Previously, the outlook was stable. The rating action follows Global Payments Inc.'s (Global Payments, Baa3 stable) announcement that it plans to acquire Worldpay for about $24 billion [1]. The transaction is expected to close in the first half of 2026, subject to regulatory clearance and other customary closing conditions. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The combination of Global Payments and Worldpay creates a leading global pure-play merchant acquirer with strong competitive positions in numerous markets. Both companies benefit from recurring, transaction-based revenue, and secular growth trends such as cash displacement. Moody's believes that the companies have highly complementary strengths with Global Payments' strong capabilities in vertically specific POS software and integrated payments focused on the SMB merchants, and Worldpay's leading e-commerce and integrated payment capabilities with a very strong position in the enterprise segment. Moody's expects the combined business to achieve at least mid-single digit growth, with potential for accelerated growth. The outcome of the review will depend on the nature of Global Payments' support for any of Worldpay's existing debt that remains in the capital structure post-acquisition and the position of such remaining debt within Global Payments' capital structure, including if there are any guarantees and in the event of a lack of guarantees, adequacy of financial information provided in order to maintain the rating. Upon closing of the acquisition, Moody's would anticipate withdrawing the CFR, PDR and instrument ratings of Worldpay. With revenue of around $5 billion in 2024, Worldpay is a leading global merchant acquirer with a highly diversified customer base including e-commerce merchants, large multi-lane retailers and SMB merchants. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. BTG TEXTILES: Has Deal on Cash Collateral Access ------------------------------------------------ BTG Textiles, Inc. and Transportation Alliance Bank advised the U.S. Bankruptcy Court for the Central District of California, that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. The Debtor needs to use cash collateral to meet payroll, pay vendors, and serve customers. The parties agreed that the Debtor may continue using cash collateral and provide monthly adequate protection payments to TAB in the amount of $112,767. This stipulation resolves TAB Bank's previously filed objection to the Debtor’s motion to use cash collateral. In exchange for the use of this collateral, TAB Bank will receive adequate protection in the form of these monthly payments, helping to safeguard its asserted $9.8 million secured claim, which is backed by a blanket lien on the Debtor's assets. A hearing on the matter is set for May 6. A copy of the motion is available at https://urlcurt.com/u?l=Q2WDgx from PacerMonitor.com. About BTG Textiles Inc. BTG Textiles Inc. is a Montebello, California-based textile manufacturer and distributor. Founded in 1988, the company manufactures and distributes textile products to healthcare facilities, institutional laundries, janitorial services, and hospitality businesses. BTG operates manufacturing facilities in Bangladesh, Portugal, and Pakistan, maintaining its principal place of business at 710 Union Street in Montebello. BTG Textiles Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-10548) on January 25, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Judge Vincent P. Zurzolo handles the case. The Debtor is represented by Michael Jay Berger, Esq., at Law Offices of Michael Jay Berger, in Beverly Hills, California. TAB Bank, as secured creditor, is represented by Michele S. Assayag, Esq. and Byron B. Mauss, Esq. at Snell & Wilmer L.L.P. C & C ELECTRIC: Files Emergency Bid to Use Cash Collateral ---------------------------------------------------------- C & C Electric, LLC asked the U.S. Bankruptcy Court for the Middle District of Tennessee for authority to use cash collateral. The Debtor needs to use cash collateral to continue operations, pay employees, purchase supplies, and preserve its business value during reorganization. The Debtor identifies five potential secured creditors that may hold valid liens on its assets, including First Bank, CHTD Company, Corporation Service Company (as representative), Iruka Capital Group, and the U.S. Small Business Administration, with outstanding obligations totaling over $838,000. To ensure creditors are adequately protected, the Debtor proposed maintaining a positive balance in its debtor-in-possession account and granting replacement liens on post-petition receivables and inventory to mirror the value and priority of the pre-petition liens. The Debtor also provides a preliminary budget and requests that the court approve cash use only for a limited interim period, with a follow-up hearing to assess ongoing cash collateral use. A copy of the motion is available at https://urlcurt.com/u?l=V84x3o from PacerMonitor.com. About C & C Electric C & C Electric LLC is an electrical contracting business located in Smyrna, TN, offering a wide range of electrical services for both residential and commercial clients, including new construction, remodels, rewires, and electrical repairs. The Company also specializes in upgrading electrical systems and retrofitting lights to LED. C & C Electric LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Case No. 25-01491) on April 8, 2025. In its petition, the Debtor reports total assets of $81,754 and total liabilities of $1,670,076. The Debtor is represented by Jay R. Lefkovitz, Esq., at Lefkovitz & Lefkovitz. CAN BROTHERS: Gets Court OK to Use Cash Collateral Until June 30 ---------------------------------------------------------------- Brothers Construction, Inc. got the green light from the U.S. Bankruptcy Court for the District of New Hampshire to use up to $293,376 in cash collateral from May 1 to June 30. The Debtor will use cash collateral to cover ordinary post-petition business expenses, including payroll and operations, as laid out in its budget. Bank of New Hampshire and the Small Business Association assert interests in the cash collateral. Bank of New Hampshire holds a secured claim, which has been reduced to $101,706 following a $110,000 court-approved equipment sale. Meanwhile, SBA holds a lien for a $523,000 EIDL loan. As protection, the Debtor will pay $1,650 to Bank of New Hampshire starting this month, and $2,500 to SBA starting in May. In addition, both creditors will be granted replacement liens on the Debtor's post-petition assets equivalent to their pre-bankruptcy liens. A next hearing is scheduled for June 25. About CAN Brothers Construction CAN Brothers Construction, Inc. is a New Hampshire Corporation with the principal place of business located at 120 Ridge Road, Middleton, N.H. The Debtor filed Chapter 11 petition (Bankr. D. N.H. Case No. 24-10115) on February 26, 2024, listing up to $10 million in both assets and liabilities. Charles W. Therriault, Jr., president of CAN Brothers Construction, signed the petition. Judge Kimberly Bacher oversees the case. Eleanor Wm. Dahar, Esq., at Victor W. Dahar Professional Association, represents the Debtor as legal counsel. Bank of New Hampshire, as potential record lienholder, is represented by Deborah A. Notinger, Esq. at Cleveland, Waters and Bass, P.A. CARMEN FRATICELLI: Court Values Residential Property at $135,000 ---------------------------------------------------------------- Judge Maria de los Angeles Gonzalez of the United States Bankruptcy Court for the District of Puerto Rico concludes that Carmen Maria Mercado Fraticelli's residential property located in San Gerardo Street in the Santa Teresita Development in Ponce, Puerto Rico has a value of $135,000. On May 31, 2024 Carmen Maria Mercado Fraticelli filed the instant petition for relief under Chapter 11, SubChapter V of the Bankruptcy Code. Pending before the Court is a motion filed by Debtor on Oct. 22, 2024 requesting the valuation of the property for purposes of 11 U.S.C. Sec. 1129(b)(2)(A)(i), 11 U.S.C. Sec. 506(a) and Fed. R. Bankr. P. 3012. Such request was made after Blue View Capital LLC filed an objection to the confirmation of the plan alleging, in part, that the value of their collateral was higher than the one provided in the plan and that Debtor had not set forth admissible evidence regarding the value of the collateral. Debtor submitted an appraisal report prepared by Real Estate Appraiser Milton Flores, dated Oct. 12, 2024, which valued the property at $125,000. Conversely, Blue View submitted an appraisal report from Real Estate Appraiser Carlos Xavier Velez, dated Nov. 25, 2024, showing that the property is valued at $178,500. Confirmation of Debtor's amended plan dated Oct. 22, 2024 hinges on the valuation of the property. On May 31, 2024, Debtor filed a voluntary chapter 11 petition as a SubChapter V case and listed the property as her only real estate property in schedule A/B with a value of $125,000. Debtor listed Blue View in schedule D as having a claim in the amount of $123,154.15, secured with a lien over the property. On Aug. 5, 2024, Blue View filed proof of claim number 1 in the amount of $283,593.07 for a loan secured by the property. On Aug. 30, 2024, Debtor filed her plan or reorganization. This plan proposed payment to Blue View's secured portion of the claim in the amount of $125,000 in 120 installments of $1,515.63 with 8% interest. The plan also proposed payment to Blue View for the unsecured portion of its claim in the amount of $220.27 for 36 months. On Oct. 22, 2024, Debtor filed an amended SubChapter V plan, a memorandum of law against dismissal, and a motion requesting a valuation hearing under Fed R. Bankr. P. 3012 to establish the value of the property. Debtor's amended plan proposes payment of Blue View's secured portion of the claim in the amount of $125,000 in 180 installments of $1,194.57 with 8% interest for a total payout of $215,055.66. The amended plan also proposes payment of Blue View's unsecured portion of the claim in the amount of $482.50 for 60 months. A valuation hearing was held on Dec. 5, 2024, during which the Court heard expert testimony from both appraisers. The Court will assign more weight to Debtor's appraisal as the more conservative compared to Blue View's, while acknowledging that Debtor's report does not contemplate that the property could generate income. The Court considers Blue View's valuation of $178,500 overly aggressive and based on inaccurate numbers. In recognition that valuation is an inexact science, the Court concludes that based on the testimony and the documentary evidence presented at the valuation hearing, the property has a value of $135,000. Debtor is granted thirty (30) days from the entry of this order to file a new SubChapter V plan with the Court consistent with this order. A copy of the Court's decision dated April 14, 2025, is available at https://urlcurt.com/u?l=CuR7hs from PacerMonitor.com. Carmen Maria Mercado Fraticelli filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 24-02341) on May 31, 2024, listing under $1 million in both assets and liabilities. The Debtor is represented by Juan Carlos Bigas Valedon, Esq. CATHETER PRECISION: Net Loss Narrows to $16.6 Million in 2024 ------------------------------------------------------------- Catheter Precision, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $16.6 million on $420,000 of total revenues for the year ended Dec. 31, 2024, compared to a net loss of $70.6 million on $442,000 of total revenues for the year ended Dec. 31, 2023. East Brunswick, New Jersey-based WithumSmith+Brown, PC., the Company's auditor since 2023, issued a "going concern" qualification in its report dated Mar. 28, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has incurred recurring losses from operations and negative cash flows from operations and expects to continue to incur operating losses that raise substantial doubt about its ability to continue as a going concern. The Company has incurred recurring net losses from operations and negative cash flows from operating activities since inception. As of December 31, 2024, the Company had cash and cash equivalents of approximately $2.9 million. For the year ended December 31, 2024, the Company used $9.3 million in cash for operating activities. As of December 31, 2024, the Company had an accumulated deficit of approximately $292.4 million. Management expects operating losses and negative cash flows to continue for the foreseeable future as the Company invests in its commercial capabilities. These negative cash flows have substantially depleted the Company's cash. Following the Merger with Old Catheter, Management further reduced costs while assuming the operating costs of Old Catheter. Management will continue to monitor its operating costs and seek to reduce its current liabilities. Such actions may impair its ability to proceed with certain strategic activities. Between May 30, 2024 and July 25, 2024, the Company issued five short-term promissory notes with related parties totaling $1.5 million with an 8% interest rate and a maturity date of August 30, 2024. On August 23, 2024, the Company amended the Related Party Notes to extend the maturity date to January 31, 2026. As part of the amendment, all interest accrued as of the amendment date was repaid to the noteholders and the contractual interest rate increased to 12% per annum as of the amendment date. On August 30, 2024, the Company entered into an Underwriting Agreement with Ladenburg Thalmann & Co. Inc. as representative of the underwriters named in the Underwriting Agreement. Pursuant to the Underwriting Agreement, the Company completed a public offering of its securities on September 3, 2024 and sold an aggregate of: (i) 805,900 Common Stock Units and (ii) 2,773,000 Pre-Funded Units. The Company collected gross proceeds of approximately $3.6 million before deducting underwriting discounts, commissions, and offering expenses payable by the Company of $1 million. On October 25, 2024, the Company executed the Warrant Inducement Offer Letters with certain holders of the Company's existing warrants. Following the close of the 2024 Warrant Inducement Offer, such warrant holders immediately exercised an aggregate of: (i) 33,160.8 Series E Warrants, (ii) 499,909.34 Series F Warrants, (iii) 499,909.34 Series G Warrants, (iv) 1,990,000 Series H Warrants, and (v) 2,325,000 Series I Warrants to purchase 5,347,981 shares of the Company's common stock at a reduced exercise price of $0.70 per share of common stock. In consideration for the immediate exercise of the 2024 Existing Warrants for cash, the Company agreed to issue unregistered new Series K Common Stock Purchase Warrants to purchase up to 10,695,962 shares of common stock. The Company received aggregate gross proceeds of $3.7 million in cash, prior to deducting placement agent fees and offering expense of $0.4 million. Based on the Company's liquidity resources, there is substantial doubt about the Company's ability to continue as a going concern within 12 months from the date of issuance of the consolidated financial statements. The accompanying consolidated financial statements have been prepared on the basis of the Company continuing to operate in the normal course of business and do not reflect any adjustments to the assets and liabilities related to the substantial doubt of its ability to continue as a going concern. Management's ability to continue as a going concern is dependent upon its ability to raise additional funding. Management plans to raise additional capital through public or private equity or debt financings to fulfill its operating and capital requirements for at least 12 months from the date of the issuance of the consolidated financial statements. However, the Company may not be able to secure such financing in a timely manner or on favorable terms, if at all. Furthermore, if the Company issues equity securities to raise additional funds, its existing stockholders may experience dilution, and the new equity securities may have rights, preferences and privileges senior to those of the Company's existing stockholders. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/zzcc5jvx About Catheter Precision Inc. Headquartered in the U.S., Catheter Precision, Inc. is a medical device company focused on improving the treatment of cardiac arrhythmias. The Company, which was reincorporated as Ra Medical Systems, Inc. in Delaware in 2018 and changed its name to Catheter Precision, Inc. on August 17, 2023, develops technology for electrophysiology procedures through collaborations with physicians and continuous product advancements. As of Dec. 31, 2024, the Company had $27.8 million in total assets, $16 million in total liabilities, and a total stockholders' equity of $11.8 million. CELSIUS NETWORK: Bankruptcy Reference Withdrawn in Adversary Case ----------------------------------------------------------------- Judge Jennifer L. Rochon of the United States District Court for the Southern District of New York granted defendants' motion to withdraw the bankruptcy reference in the adversary proceeding captioned as MOHSIN Y. MEGHJI, Litigation Administrator, as Representative for the Post-Effective Date Debtors, Plaintiff, -against- COMPOUND LABS, INC., COMPOUND DAO, ROBERT LESHNER, and GEOFFREY HAYES, Defendants, Case No. 25-cv-00926-JLR (S.D.N.Y.). This Adversary Proceeding was commenced in the Southern District of New York Bankruptcy Court by Plaintiff Mohsin Y. Meghji, the Litigation Administrator for Celsius Network LLC and its affiliated Debtors, against Defendants Compound Labs, Inc., Compound Dao, Robert Leshner, and Geoffrey Hayes. The Adversary Proceeding is part of a larger bankruptcy case, In re Celsius Network LLC, No. 22-10964 (MG) (Bankr. S.D.N.Y. filed July 13, 2022), pending in the Southern District of New York Bankruptcy Court before Judge Martin Glenn. In this Adversary Proceeding, Celsius asserts federal securities law and various common-law claims in connection with trading losses it suffered while loaning and borrowing cryptocurrency assets on a software protocol system developed by Compound Labs. Now before the District Court is Defendants' Motion to Withdraw the Bankruptcy Reference pursuant to 28 U.S.C. Sec. 157(d). Defendants argue that withdrawal of the bankruptcy reference is necessary because Celsius brings a federal securities claim under Section 10(b)(5) of the Securities Exchange Act of 1934 and Rule 10b-5 that involves a significant interpretation -- not simple or routine application -- of federal securities law. They separately assert that cause also exists for permissive withdrawal of Celsius's remaining common-law claims for negligence, professional malpractice, breach of fiduciary duty, and negligent misrepresentation. Because this case necessitates significant interpretation of SEC v. W.J. Howey Co. and its progeny, Ageloff, 220 B.R. at 796, and involves more than the routine application of federal laws outside the Bankruptcy Code, removal to federal district court is appropriate, the District Court concludes. For these reasons, chief of which is that the application of federal securities laws to virtual and digital assets is a still-developing field of law, the, District Court finds that the bankruptcy reference for Plaintiff's federal securities claim should be withdrawn under Section 157(d). Turning to Plaintiff's claims for negligence, negligent misrepresentation, professional malpractice, and breach of fiduciary duty, the District Court finds that withdrawal of those claims is warranted under the permissive language of 28 U.S.C. Sec. 157(d). Defendants argue that there is cause for permissive withdrawal, because: (1) the Bankruptcy Court lacks final adjudicative authority over the Adversary Proceeding; (2) the Adversary Proceeding is a non-core proceeding; and (3) the remaining Orion factors favor withdrawal. The District Court agrees. The District Court finds Celsius's claims, which arise from pre-petition conduct and in no way turn on bankruptcy law or depend on federal bankruptcy jurisdiction, are non-core. Considered together, the remaining Orion factors, including the parties' right to a jury trial, as well as considerations of efficiency, prevention of forum shopping, and uniformity in the administration of bankruptcy law, favor withdrawal, the District Court concludes. Plaintiffs argue that even if the District Court grants the motion to withdraw the reference now, it should remand to the Bankruptcy Court for pretrial proceedings, including a proposed ruling on Defendants' Motion to Dismiss and any subsequent dispositive motions. Although Judge Glenn undoubtably has extensive knowledge of Celsius' bankruptcy proceedings, it is not clear to the District Court that familiarity with the Chapter 11 proceedings will necessarily facilitate resolution of the common-law and federal securities claims asserted in this case, such that remand would lead to the most efficient and timely resolution of this action. Therefore, the District Court declines to remand the matter to Bankruptcy Court for pretrial proceedings. A copy of the Court's decision is available at https://urlcurt.com/u?l=Gy4Na5 from PacerMonitor.com. About Celsius Network Celsius Network LLC -- http://www.celsius.network/-- is a financial services company that generates revenue through cryptocurrency trading, lending, and borrowing, as well as by engaging in proprietary trading. Celsius helps over a million customers worldwide to find the path towards financial independence through a compounding yield service and instant low-cost loans accessible via a web and mobile app. Celsius has a blockchain-based fee-free platform where membership provides access to curated financial services that are not available through traditional financial institutions. The Celsius Wallet claims to be one of the only online crypto wallets designed to allow members to use coins as collateral to get a loan in dollars, and in the future, to lend their crypto to earn interest on deposited coins (when they're lent out). Crypto lenders such as Celsius boomed during the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. But the lenders' business model came under scrutiny after a sharp sell-off in the crypto market spurred by the collapse of major tokens terraUSD and luna in May 2022. New Jersey-based Celsius froze withdrawals in June 2022, citing "extreme" market conditions, cutting off access to savings for individual investors and sending tremors through the crypto market. The list of major crypto firms that have filed for bankruptcy protection in 2022 now includes Celsius Network, Three Arrows Capital and Voyager Digital. Celsius Network, LLC and its subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex Mashinsky, the Debtors estimated assets and liabilities between $1 billion and $10 billion. The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis International, LLP as bankruptcy counsels; Fischer (FBC & Co.) as special counsel; Centerview Partners, LLC as investment banker; and Alvarez & Marsal North America, LLC as financial advisor. Stretto is the claims agent and administrative advisor. On July 27, 2022, the U.S. Trustee appointed an official committee of unsecured creditors. The committee tapped White & Case, LLP as its bankruptcy counsel; Elementus Inc. as its blockchain forensics advisor; M3 Advisory Partners, LP as its financial advisor; and Perella Weinberg Partners, LP as its investment banker. Shoba Pillay, Esq., is the examiner appointed in the Debtors' Chapter 11 cases. Jenner & Block, LLP and Huron Consulting Services, LLC, serve as the examiner's legal counsel and financial advisor, respectively. * * * On November 9, 2023, the Bankruptcy Court entered the Findings of Fact, Conclusions of Law, and Order Confirming the Modified Joint Chapter 11 Plan of Celsius Network LLC and Its Debtor Affiliates. The Effective Date of the Plan occurred January 31, 2024. CELSIUS NETWORK: Curated Loses Bid to Dismiss Adversary Case ------------------------------------------------------------ Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York denied Curated's motion seeking dismissal, with prejudice, of all counts asserted in the amended adversary complaint filed by Mohsin Y. Meghji in his capacity as litigation administrator for Celsius Network LLC and its debtor affiliates. The adversary proceeding is captioned as MOHSIN Y. MEGHJI, as Representative for the Post-Effective Date Debtors, Plaintiff, v. ANTOINE CASTEL. et al., Defendants, Adv. Pro. No. 24-04004 (MG) (Bankr. S.D.N.Y.). The Litigation Administrator commenced the instant adversary proceeding on July 13, 2024. The Complaint centers on various CNL coins and other assets, including the CryptoPunk NFT, that Stone and the KeyFi Executives are alleged to have misappropriated. The Litigation Administrator alleges six claims against various defendants, including Curated, who are alleged to have received these misappropriated assets: (1) turnover under 11 U.S.C. Sec. 542(a); (2) turnover and accounting of documents under 11 U.S.C. Sec. 542(e); (3) actual fraudulent transfer; (4) constructive fraudulent transfer; (5) unjust enrichment; and (6) accounting. Plaintiff also alleges violations of the Rackeeter Influenced and Corrupt Organizations (RICO) Act against a subset of defendants which does not include Curated. Curated filed the Motion on Oct. 4, 2024. Curated seeks to dismiss the Complaint on the basis that Plaintiff fails to state a claim for each of the causes of action stated against Defendant. As to the fraudulent transfer claims, Curated argues that the Litigation Administrator failed to plead with particularity that Curated acted with intent to defraud in consummating the acquisition of the CryptoPunk NFT in July 2022, and that none of the traditional badges of fraud are present. Among other things, Curated notes that it paid a significantly higher price for the CryptoPunk NFT than the KeyFi Executives did in February 2021, as is reflected on the public blockchain. It also contests that Celsius was insolvent at the time of the transfers, that the transfers were made at a time when the KeyFi Executives had substantial and overwhelming liability to Celsius, and that the Litigation Administrator is impermissibly grouping the transfer of the CryptoPunk NFT with those of other, more material CNL assets by Stone and the KeyFi Executives to plead a nonexistent fraudulent scheme. As to the constructive transfer claims, Curated posits that Celsius did not receive less than reasonably equivalent value as a result of the transfers of the CryptoPunk NFT, in light of the purchase price Curated agreed to pay. Additionally, the Motion provides that Celsius cannot recover from Curated as a mediate good faith transferee under 11 U.S.C. Sec. 550(b). Curated also challenges the Complaint's turnover and accounting claims, on the basis that the CryptoPunk NFT is not property of the estate and that there is no fiduciary relationship between Celsius and Curated. Finally, it seeks dismissal of the unjust enrichment claim, noting that the Complaint does not plead that Celsius actually transacted with Defendant, and separately arguing that Celsius already obtained a recovery for the assets at issue in the Complaint through its settlement agreement with Stone and the KeyFi Executives. Counts III and IV are fraudulent transfer claims applicable to the Celsius Indirect Transfers and the Executive Transfers, respectively. Each count asserts that the applicable transactions constituted both intentional fraudulent transfers and constructive fraudulent transfers. Counts I, II, and VI are turnover and accounting claims. Count V is for unjust enrichment. Based on the presence of multiple badges of fraud, the Court finds that the Litigation Administrator has adequately alleged the fraudulent intent element of the actual fraudulent transfer claims with plausibility and particularity. Accordingly, Counts III and IV of the Complaint adequately state claims for intentional fraudulent transfer. The Court declines to dismiss the Plaintiff's fraudulent transfer claims against Curated at this time and concludes instead that Counts III and IV of the Complaint adequately state claims for constructive fraudulent transfer. The Court declines to dismiss the accounting claim on the basis of the absence of a confidential or fiduciary relationship between Curated and Celsius. The Court therefore concludes that Counts I, II, and VI of the Complaint adequately state claims for turnover and accounting. Curated argues that this Court should dismiss the Litigation Administrator's unjust enrichment claim, arguing that the Complaint fails to assert any facts which plausibly allege that Defendant was unjustly enriched at Celsius' expense. However, the Complaint explicitly asserts -- and Curated does not dispute -- that Defendant did receive the CryptoPunk NFT (which the KeyFi Executives had previously purchased using Celsius assets), and that Celsius received no consideration in return for the exchange. Curated maintains that the unjust enrichment claim should still be dismissed, as the connection between the parties is too attenuated. Curated acknowledges, at most, two degrees of separation between itself and the Celsius parties -- a far cry from the circumstances leading courts to dismiss unjust enrichment claims on the basis of attenuation. The Court therefore finds that Count V of the Complaint adequately states a claim for unjust enrichment. A copy of the Court's decision is available at https://urlcurt.com/u?l=cS3KoS from PacerMonitor.com. Attorneys for Mohsin Y. Meghji, Litigation Administrator for Celsius Network LLC: Mitchell P. Hurley, Esq. Dean L. Chapman Jr., Esq. AKIN GUMP STRAUSS HAUER & FELD LLP One Bryant Park New York, NYor 10036 E-mail: mhurley@akingump.com dchapman@akingump.com - and - Elizabeth D. Scott, Esq. Nicholas R. Lombardi, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP 2300 North Field Street Dallas, TX 75201 E-mail: edscott@akingump.com nlombardi@akingump.com Attorneys for Curated: Joseph B. Evans, Esq. MCDERMOTT WILL & EMERY LLP One Vanderbilt Avenue New York, NY 10017 E-mail: jbevans@mwe.com - and - Joshua Yim, Esq. MCDERMOTT WILL & EMERY LLP 2049 Century Park East, Suite 3200 Los Angeles, CA 90067 E-mail: jyim@mwe.com CIVILGEO INC: Hires Michael Best & Friedrich LLP as Counsel ----------------------------------------------------------- CivilGEO Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Wisconsin to employ Michael Best & Friedrich LLP as counsel. The firm will render these services: a. advise and assist the Debtor with respect to its rights, duties, and powers under the Bankruptcy Code; b. advise the Debtor as to the course of this Chapter 11 case, including the legal and administrative requirements of operating as a Chapter 11 debtor-in-possession; c. attend meetings and negotiate with representatives of the Debtor's creditors and other interested parties; d. prosecute actions on behalf of the Debtor, defend actions commenced within this case against the Debtor, and represent the Debtor's interests in negotiations concerning litigation in which the Debtor is involved and claims against the Debtor and its estate. e. prepare pleadings in connection with this Chapter 11 case, including motions, application, answers, proposed orders, reports, and papers necessary or otherwise beneficial to the administration of the Debtor's estate; f. advise the Debtor in connection with and assist in the negotiation and documentation of financing arrangements and related transactions, contracts, commercial transactions, and any potential sale of assets; g. assist the Debtor in licensing, regulatory, tax and other governmental matters related to this case and its restructuring; h. appear before the Court to represent the Debtor's interest and those of its estate; i. assist the Debtor in preparing, negotiating, and implementing a plan, and advise the Debtor, if necessary, as to any rejection or amendments to the plan; and j. perform all other necessary or appropriate legal services for the Debtor in connection with the prosecution of this Chapter 11 case. The firm will be paid at these rates: Justin M. Mertz (Partner) $695 per hour Christopher J. Schreiber (Partner) $670 per hour S. Edward Sarskas (Partner) $715 per hour Davis W. Sullivan (Associate) $395 per hour J. Ryan Gray (Associate) $475 per hour Other Partners $350 to $850 per hour Other Associates and Staff Attorneys $250 to $500 per hour Paralegals and Other Paraprofessionals $100 to $300 per hour The firm received a retainer in the amount of $65,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Justin M. Mertz, Esq., a partner at Michael Best & Friedrich LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Justin M. Mertz, Esq. Davis W. Sullivan, Esq. MICHAEL BEST & FRIEDRICH LLP 790 N. Water St., Ste. 2500 Milwaukee, WI 53202 Telephone: (414) 271-6560 Facsimile: (414) 277-0656 Email: jmmertz@michaelbest.com davis.sullivan@michaelbest.com About Civilgeo, Inc. CivilGEO Inc. specializes in creating intuitive CAD and GIS-based hydrologic engineering software for a global market. The Company's product lineup includes three key offerings: GeoHECRAS, GeoHECHMS, and GeoSTORM, with no other software available for purchase. CivilGEO's solutions are widely used by consulting engineers, public utilities, government agencies, and educational institutions across the U.S. for effective water resource management. CivilGEO's software is particularly focused on hydrologic simulation modeling, which involves designing and running computational models to simulate both surface and groundwater flow. CivilGEO Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wis. Case No. 25-10731) on April 1, 2025. In its petition, the Debtor reports total assets as of February 28, 2025 amounting to $653,051 and total liabilities as of February 28, 2025 of $1,283,472. The Debtor is represented by Justin M. Mertz, Esq. at MICHAEL BEST & FRIEDRICH LLP. CLST ENTERPRISES: Member Loses Bid to Stay Eviction Order --------------------------------------------------------- In the appealed case styled as CARL THOMSON, Appellant, -against- KENNETH SILVERMAN, Appellee, Case No. 25-cv-02925-MKV (S.D.N.Y.), Judge Mary Kay Vyskocil of the United States District Court for the Southern District of New York denied Carl Thomson's application for emergency relief seeking to stay an eviction order issued by the United States Bankruptcy Court for the Southern District of New York pending resolution of his appeal. The Debtor is a single-asset real estate debtor, and its only asset is a brownstone located at 19 East 75th Street, New York, New York 10021. Thomson and his wife are each fifty-percent members of the Debtor. They live in the Property and do not pay rent to the Debtor. On April 9, 2025, Thomson filed an appeal from the March 27, 2025 decision of the Bankruptcy Court granting the Chapter 11 Trustee's motion to sell the Debtor's property, which decision requires that Thomson and his wife vacate the premises by April 11, 2025. Chief Judge Glenn explained that the Trustee has articulated a sound business purpose for the Auction Sale. Chief Judge Glenn further ruled that removal of Thomson and his wife is necessary and appropriate, in light of their alleged belligerence and uncooperative behavior regarding the sale, in order to maximize the value of the Debtor's asset. In his application for emergency relief, Thomson argues that the Bankruptcy Court erred because: (1) Thomson lacked authority to file the Chapter 11 petition, (2) consent was needed but not obtained from his potentially vulnerable and mentally ill wife, and (3) the Auction Sale and Immediate Eviction do not meet the Lionel ("Business Judgment Test") The District Court finds Thomson has not carried his burden to obtain extraordinary injunctive relief. Judge Vyskocil says, "The record in this appeal reflects that Thomson has long been aware of the likelihood that he would be required to vacate the Property. Indeed, the record reflects that a foreclosure sale had been scheduled to proceed the day the Debtor commenced the Chapter 11 case. Yet Thomson inexplicably delayed filing this appeal and his application for emergency relief after the Bankruptcy Court order issued." According to the District Court, the record at this stage supports Chief Judge Glenn's rulings that the Trustee has identified sound business reasons selling the Property, which appears to be the Debtor's only asset, and requiring Thomson and his wife to vacate the Property. Thomson has not carried his burden to show that the sale and eviction otherwise violate Section 363 of the Bankruptcy Code, the District Court concludes. The District Court also does not find that the balance of equities tips in favor of emergency relief. A copy of the Court's decision is available at https://urlcurt.com/u?l=qOj91o from PacerMonitor.com. About CLST Enterprises CLST Enterprises, LLC owns a 4,742-square-foot mixed-use building consisting of residence with commercial retail and office space rentals valued at $9.36 million. CLST Enterprises filed Chapter 11 petition (Bankr. S.D.N.Y. Case No. 24-10596) on April 8, 2024, listing $9,393,173 in assets and $7,356,006 in liabilities. The petition was signed by Carl Thomson as member. Judge Martin Glenn oversees the case. The Debtor tapped Weinberg Zareh Malkin Price, LLP and Vernon Consulting, Inc. as legal counsel and financial advisor, respectively. CMG HOLDINGS: Files Form 15-12G to Suspend SEC Reporting -------------------------------------------------------- CMG Holdings Group Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it filed on March 31, 2025, a form 15-12G seeking a termination/suspension with the SEC. After careful consideration, the cost of maintaining SEC reporting obligations is no longer cost effective. The company is exploring other methods for maintaining an orderly trading market for CMG's stock including applying for OTC-ID status as well as either a strategic merger or an acquisition. "We will be reporting back to shareholders as to the direction we will be taking in the upcoming weeks. CMG's operating business and investment portfolio continue to be the primary focus of the corporation. As a footnote, because our previous auditor was disqualified by the SEC going forward we would have to re-audit 2023 resulting in paying for that audit and 2024 simultaneously has become a cost that we find excessive." About CMG Holdings Headquartered in Chicago, Ill., CMG Holdings Group, Inc. is a marketing communications company focused on the operation of organizations in the alternative advertising, digital media, experiential and interactive marketing, and entertainment industry. The Company was formed by a core group of executives who have held senior level positions with several of the largest companies in the entertainment and marketing management industry. The Company delivers customized marketing solutions to optimize profitability by concentrating our resources in those segments of the marketing communications and entertainment industry. The Company operates in the sectors of experiential marketing, event marketing, commercial rights, and talent management. Lakewood, Colo.-based BF Borgers CPA PC, the Company's former auditor, issued a "going concern" qualification in its report dated April 22, 2024, citing that the Company's negative cash flow from operations raises substantial doubt about its ability to continue as a going concern. On June 12, 2024, the Company selected Michael Gillespie & Associates to replace BF Borgers CPA PC, as its PCAOB certifying accountant, after BF Borgers CPA PC, and its owner, Benjamin F. Borgers, were charged by the Securities and Exchange Commission with deliberate and systemic failures to comply with Public Company Accounting Oversight Board (PCAOB) standards in its audits and reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023; falsely representing to their clients that the firm's work would comply with PCAOB standards; fabricating audit documentation to make it appear that the firm's work did comply with PCAOB standards; and falsely stating in audit reports included in more than 500 public company SEC filings that the firm's audits complied with PCAOB standards. Borgers agreed to pay a $14 million civil penalty and agreed to permanent suspensions from appearing and practicing before the Commission as accountants, effective immediately. COASTAL GROWERS: Hires Berger Singerman LLP as Counsel ------------------------------------------------------ Coastal Growers LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Alabama to employ Berger Singerman LLP to handle its Chapter 11 case. The firm will be paid at these rates: Edward J. Peterson $600 per hour Of Counsel & Associate Attorneys $450 to $675 per hour Legal Assistants/Paralegals $125 to $425 per hour In addition, the firm will seek reimbursement for expenses incurred. Mr. Peterson disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Edward J. Peterson, Esq. Berger Singerman LLP 401 East Jackson Street, Suite 3300 Tampa, FL 33602 Tel: (813) 498-3400 Fax: (813) 527-3705 Email: epeterson@bergersingerman.com About Coastal Growers LLC Coastal Growers, LLC is a company that helps peanut farmers achieve higher returns by sharing in farming and shelling profits and operates a shelling facility in Atmore. Since its launch in 2021, the facility has served as a key center for peanut shelling, storage, and shipping, contributing to regional agricultural growth and economic development, the report relays. Coastal Growers filed Chapter 11 petition (Bankr. S.D. Ala. Case No. 24-13034) on November 27, 2024, with total assets of $10 million to $50 million and total liabilities of $100 million to $500 million. Holly Johnson, chief financial officer of Coastal Growers, signed the petition. Judge Henry A. Callaway presides over the case. The Debtor tapped Edward J. Peterson, III at Johnson Pope Bokor Ruppel & Burns, LLP as counsel and Porter White Capital Advisors, Inc. as investment banker. COMMONWEALTH BIOTECHNOLOGIES: Chien v. Jensen, et al. Suit Tossed ----------------------------------------------------------------- Judge Kari A. Dooley of the United States District Court for the District of Connecticut granted the defendants' motion to dismiss the case captioned as ANDREW CHIEN, Plaintiff, v. TIMOTHY P. JENSEN, et al., Defendants, Case No. 3:24-cv-01717-KAD (D. Conn.) with prejudice. This action arises out of a longstanding dispute between Plaintiff Andrew Chien nd non-party Richard Freer. Defendants Timothy P. Jensen and William J. O'Sullivan, both attorneys, previously represented Freer in litigation between Plaintiff and Freer. Plaintiff commenced this action pro se in the Superior Court for the State of Connecticut on Oct. 7, 2024. Defendants subsequently removed the action to this Court. Although the Complaint is largely inscrutable, Plaintiff appears to allege that Defendants were involved in a Racketeering Influenced and Corrupt Organization (RICO) scheme, engaged in unlicensed consumer debt collection against Plaintiff for purposes of unjust enrichment in violation of Conn. Gen. Stat. Sec. 36a-800(3)(iii)-(iv), defamed Plaintiff, and committed gross negligence causing him injury. Pending before the Court is Defendants' motion to dismiss pursuant to Rules 12(b)(1) and 12(b)(6). In Plaintiff's telling, the Freer Dispute arose during the Chapter 11 bankruptcy proceedings of Commonwealth Biotechnology Inc. Plaintiff alleges that during those proceedings, his civil rights were violated under the color of law and that Freer and his lawyers persuaded Judge Richard Burke to assist in the unlawful detention of Chien from 2013 to 2016 in violation of C.G.S. Sec. 53a-92. Plaintiff claims that his unlawful detention lasted for approximately 38 months and that, although the firm representing Freer, LeClairRyan, apparently dissolved, Freer continued his debt collection efforts -- despite Plaintiff's countersuits. Plaintiff explains that these events allegedly made it essential for him to sue both Freer and the judges involved. This allegation is a reference to the Underlying Litigation in which Defendants represented Freer. Plaintiff seeks compensatory and punitive damages. Defendants seek dismissal of this case for both lack of subject matter jurisdiction and for failure to state a claim under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6), respectively. Defendants argue that the claims brought against them are barred by absolute immunity or the litigation privilege, which, they assert, deprives this Court of subject matter jurisdiction. According to the Court, Counts One, Four, and Five (as against Jensen), and Count One (as against O'Sullivan) do not assert, in any fashion, an abuse of the litigation process as described in Ammar I., 2025 WL 907776, at *6. Count One appears to address Jensen's alleged violation of his limited job scope by acting as a debt collector. Count Four alleges that Jensen aided Freer to engage scheme of RICO. Count Five alleges that Jensen defamed Chien to question Chien's claim of the false imprisonment in VA for about 38 months, implying that it was legal to treat Chien as the debt-prison. And Count One (as against O'Sullivan) alleges that O'Sullivan committed gross negligence to supervise Jensen's fraudulent actions with the five counts. All of these claims derive from Defendants' legal representation of Freer in the Underlying Litigation. And none, to the extent they are even comprehensible, suggest any acts by Defendants undertaken to inflict injury on Chien in the form of unfounded legal actions, the Court finds. In fact, the Complaint itself acknowledges that Defendants' alleged misconduct was undertaken while Defendants served as Freer's attorneys in the Underlying Litigation, the Court adds. Count Two alleges violation of C.G.S. 36a-800(3)(iii) and 15 U.S.C. 1692(e)(13) by Jensen through the abuse of the litigation process for consumer debt collection. Count Three alleges that Jensen engaged in a conspiracy with Freer to violate C.G.S. 36a-800(3)(iii) and 15 U.S.C. 1692(e)(13) by aiding Freer in committing the subject error through the misuse of the court process for debt collection in case NNH-CV12-4053717-S. The Court finds Plaintiff does not sufficiently allege (or allege at all) any facts to support a claim that Jensen used any litigation or legal process to accomplish a purpose for which it was not designed. Furthermore, it is not at all clear in the Complaint that either Jensen or O'Sullivan initiated the alleged legal processes for an improper purpose. Judge Dooley says, even if Plaintiff is alleging, which is not clear, that Defendants engaged in 'fraud' while representing Freer in prior litigation, such an allegation does not save his claims because they would not adequately allege that the legal processes themselves were initiated for an improper purpose. The Court concludes that all Plaintiff's claims are barred by the litigation privilege. Plaintiff is reminded that the filing injunction against him in this Court remains in place. A copy of the Court's decision dated April 16, 2025, is available at https://urlcurt.com/u?l=ECFzNs from PacerMonitor.com. About Commonwealth Biotechnologies Based in Midlothian, Virginia, Commonwealth Biotechnologies, Inc., was a specialized life sciences outsourcing business that offered cutting-edge expertise and a complete array of Peptide-based discovery chemistry and biology products and services through its wholly owned subsidiary Mimotopes Pty Limited. Commonwealth Biotechnologies Inc. filed for Chapter 11 bankruptcy protection (Bankr. E.D. Va. Case No. 11-30381) on Jan. 20, 2011. Judge Kevin R. Huennekens presides over the case. Paula S. Beran, Esq., at Tavenner & Beran, PLC, represents the Debtor. The Debtor estimated both assets and debts of between $1 million and $10 million. On March 29, 2013, the Bankruptcy Court entered an order confirming the company's Plan of Reorganization. On April 17, the Company disclosed that its Plan has become effective April 15. Pursuant to the plan, CBI is in the process of finalizing definitive documentation with HedgePath, LLC, a drug development company focused on cancer therapies, pursuant to which HedgePath will contribute the intellectual property assets relating to its business to CBI in exchange for a new class of preferred stock representing 90% of the outstanding voting stock of CBI on a fully-diluted basis. When the transaction is consummated, CBI's current shareholders will retain a 10% equity interest in the new entity and will retain one seat on the Board of Directors of CBI, which is expected to be renamed HedgePath Pharmaceuticals, Inc. On April 7, 2011, the Bankruptcy Court approved the private sale of Mimotopes for a gross sales price of $850,000. The sale closed on April 29, 2011. Mimotopes was deconsolidated during the second quarter of 2011. During the bankruptcy, CBI also sold its real property holdings in Chesterfield County, Virginia. The Company's balance sheet at June 30, 2012, showed $1.20 million in total assets, $1.79 million in total liabilities, and a $598,484 total stockholders' deficit. On Aug. 19, 2013, HedgePath disclosed that it has completed a series of transactions to effectuate the reorganization of Commonwealth Biotechnologies and CBTI's exit from its Chapter 11 proceedings via a Plan of Reorganization that will enable HPPI to operate as a public company. CORTEX NORTH: Case Summary & 14 Unsecured Creditors --------------------------------------------------- Debtor: Cortex North America Corporation 4103 SE International Way, Suite 305 Portland, OR 97222 Business Description: Cortex is a U.S.-based company that specializes in high-performance chipping systems for the forest products industry. Founded in 2016 and headquartered in Milwaukie, Oregon, it provides durable and cost-effective cutting solutions to sawmills and wood manufacturers globally. The Company offers a range of products, including reversible knife systems, bridge knives, and chipping components designed to enhance operational efficiency and reduce costs. Chapter 11 Petition Date: April 18, 2025 Court: United States Bankruptcy Court District of Oregon Case No.: 25-31290 Judge: Hon. Peter C. McKittrick Debtor's Counsel: Theodore J. Piteo, Esq. MICHAEL D. O'BRIEN & ASSOCIATES PC 12909 SW 68th Parkway, Suite 160 Portland, OR 97223 Email: ted@pdxlegal.com Total Assets: $611,562 Total Liabilities: $2,489,933 The petition was signed by Trent Carpenter as president. A full-text copy of the petition, which includes a list of the Debtor's 14 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/DAYEJMA/Cortex_North_America_Corporation__orbke-25-31290__0001.0.pdf?mcid=tGE4TAMA CQENS TECHNOLOGIES: Reports Net Loss of $10.9 Million in 2024 ------------------------------------------------------------- CQENS Technologies Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net consolidated loss of $10,912,576 and $4,303,550 for 2024 and 2023, respectively, and a working capital surplus of $1,575,975 at December 31, 2024. Houston, Texas-based MaloneBailey, LLP, the Company's auditor since 2013, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 202, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. CQENS said, "We do not have any revenue generating operations, do not presently expect to launch our first products until the fourth quarter of 2025 or early in 2026 and will need to raise significant capital to pay our operating expenses and satisfy our obligations as they become due, in addition to continuing to implement our business plan. If we are unable to secure the necessary capital, our ability to continue our operations will be in jeopardy." "We have experienced losses from operations, which losses have caused an accumulated deficit of $34,763,794 at December 31, 2024. "While we have secured significant capital through private investments, we do not have continuous sources of capital or certainty of additional capital. As we work through the PMTA process, we will require substantial capital to fund this regulatory step to commercialization. We are not certain that the capital raised will sufficiently fund this activity along with our operating expenses and satisfy our obligations as they become due. There are no assurances that we will be able to raise sufficient capital to implement our business plan in order to permit us to begin generating revenues and cash flow to a level which supports profitable operations and provides sufficient funds to pay our obligations. If we are unable to meet those obligations, we could be forced to cease operations in which event investors would lose their entire investment in our company." A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/mvjmyjyz About CQENS Technologies Inc. CQENS Technologies Inc. is a technology company that designs and develops innovative methods to heat plant-based and/or medicant-infused formulations to produce aerosols for the efficient and efficacious inhalation of the plant and medicant constituents contained therein. As of Dec. 31, 2024, the Company had $7,432,268 in total assets, $3,129,718 in total liabilities, and a total stockholders' equity of $4,302,550. DAATS COMPANIES: Seeks to Hire Joyce W. Lindauer as Counsel ----------------------------------------------------------- Daats Companies, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Joyce W. Lindauer Attorney, PLLC as counsel. Joyce W. Lindauer Attorney, PLLC to handle its Chapter 11 case. The firm will be paid at these rates: Joyce W. Lindauer $595 per hour Paul B. Geilich $525 per hour Laurance Boyd $295 per hour Dian Gwinnup $250 per hour The firm received from the Debtor a retainer of $26,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Joyce W. Lindauer, Esq., a partner at Joyce W. Lindauer Attorney, PLLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Joyce W. Lindauer, Esq. Joyce W. Lindauer Attorney, PLLC 1412 Main Street, Suite 500 Dallas, TX 75202 Tel: (972) 503 4033 Fax: (972) 503-4034 About Daats Companies, Inc. DAATS Companies Inc. is a comprehensive trucking firm located in Dallas, Texas, providing nationwide transport services, including dry-van and refrigerated product shipments. The Company focuses on urgent, same-day, and scheduled deliveries, prioritizing safety and punctuality across the continental United States. DAATS Companies sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40894) on March 14, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Edward L. Morris handles the case. The Debtor is represented by Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC. DAYTON DEVELOPMENT: Case Summary & 14 Unsecured Creditors --------------------------------------------------------- Debtor: Dayton Development Partners, LLC 2210 Arbor Boulevard Dayton, OH 45439 Business Description: Dayton Development Partners, LLC is a single-asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). It owns the property located at 2210 Arbor Boulevard, Dayton, Ohio 45439, which is currently valued at $8.5 million. Chapter 11 Petition Date: April 18, 2025 Court: United States Bankruptcy Court Southern District of Ohio Case No.: 25-30699 Judge: Hon. Guy R Humphrey Debtor's Counsel: Eric W. Goering, Esq. GOERING & GOERING 220 West Third Street Cincinnati, OH 45202 Tel: (513) 621-0912 E-mail: eric@goering-law.com Total Assets: $8,600,000 Total Liabilities: $7,997,257 The petition was signed by Joshua Pardue as manager. A full-text copy of the petition, which includes a list of the Debtor's 14 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/6TC5PBY/Dayton_Development_Partners_LLC__ohsbke-25-30699__0001.0.pdf?mcid=tGE4TAMA DCA OUTDOOR: Committee Hires Dundon Advisers as Financial Advisor ----------------------------------------------------------------- The official committee of unsecured creditors of DCA Outdoor, Inc. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Western District of Missouri to employ Dundon Advisers LLC as financial advisor. The firm will provide these services: a. assist in the analysis, review, and monitoring of the restructuring and/or liquidation process, including, but not limited to, an assessment of the unsecured claims pool and potential recoveries for unsecured creditors; b. develop a complete understanding of the Debtors' businesses and their valuations; c. determine whether there are viable alternative paths for the disposition of the Debtors' assets either currently or in the future proposed by the Debtors; d. monitor and, to the extent appropriate, assist the Debtors in efforts to develop and solicit transactions which would support unsecured creditor recovery; e. assist the Committee in identifying, valuing and pursuing estate causes of action, including, but not limited to, relating to prepetition transactions, control person liability and lender liability; The firm will be paid at these rates; f. assist the Committee to analyze, classify and address claims against the Debtors and to participate effectively in any effort in this Bankruptcy Case to estimate (in any formal or informal sense) contingent, unliquidated and disputed claims; h. assist the Committee to identify, preserve, value and monetize tax assets of the Debtors, if any; i. advise the Committee in negotiations with the Debtors, certain of the Debtors' lenders and third parties; j. assist the Committee in reviewing the Debtors' financial reports, including, but not limited to, statements of financial affairs, schedules of assets and liabilities, cash budgets and monthly operating reports; k. assist the Committee in reviewing the Debtors' cost/benefit analysis with respect to the assumption or rejection of various executory contracts and leases; l. review and provide analysis of the present and any subsequent proposed debtor-in-possession financing or use of cash collateral; m. assist the Committee in evaluating and analyzing avoidance actions, including fraudulent conveyances and preferential transfers; n. review and provide analysis of any proposed disclosure statement and chapter 11 plan and, if appropriate, assist the Committee in developing an alternative chapter 11 plan; o. attend meetings and assist in discussions with the Committee, the Debtors, the secured lenders, the U.S. Trustee and other parties in interest and professionals; p. present at meetings of the Committee, as well as meetings with other key stakeholders and parties; q. perform such other advisory services for the Committee as may be necessary or proper in these proceedings, subject to the aforementioned scope; and r. provide testimony on behalf of the Committee as and when may be deemed appropriate. The firm will be paid at these rates: Principal $960 per hour Managing Director and Senior Adviser $850 per hour Senior Director $755 per hour Director $700 per hour Associate Director $590 per hour Senior Associate $485 per hour Associate $350 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Eric A. Reubel, a Managing Director at Dundon Advisers LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Eric A. Reubel Dundon Advisers LLC Ten Bank Street, Suite 1100 White Plains, NY 10606 Tel: (914) 341-1188 Fax: (212) 202-4437 Email: er@dundon.com About DCA Outdoor DCA Outdoor Inc. established in 2016, is a vertically integrated green industry organization headquartered in Kansas City, Missouri. The Company connects various sectors -- including agricultural production, landscape distribution, retail, agritourism, and transportation -- through its family of brands. The DCA Outdoor family comprises several brands including Schwope Brothers Tree Farms, Utopian Plants, RIO, Anna Evergreen, Brehob Nurseries, KAT Landscape, Colonial Gardens, PlantRight, PlantRight Supply, and Utopian Transport. DCA Outdoor Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Miss. Case No. 25-50053) on February 20, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $50 million and $100 million. Honorable Bankruptcy Judge Cynthia A. Norton handles the case. The Debtor tapped Larry E. Parres, Esq., at Lewis Rice LLC as counsel and Creative Planning, LLC and its affiliate BerganKDV as audit and tax professionals. DIAMONDHEAD CASINO: Posts Net Loss of $1.8 Million in 2024 ---------------------------------------------------------- Diamondhead Casino Corporation filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K disclosing that the Company recorded a net loss of $1,802,275 for the year ending December 31, 2024 and a net loss of $1,409,827 for the year ending December 31, 2023. Marlton, N.J.-based Marcum LLP, the Company's auditor since 2004, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. The Company has incurred continued losses over the years, and certain conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company has had no operations since it ended its gambling cruise ship operations in 2000. Since that time, the Company has concentrated its efforts on the development of its Diamondhead, Mississippi Property. The development of the Diamondhead Property is dependent on obtaining the necessary capital, through equity and/or debt financing, unilaterally, or in conjunction with one or more partners, to master plan, design, obtain permits for, construct, staff, open, and operate a casino resort. In the past, the Company has been able to sustain itself through various short term borrowings, however, as of Dec. 31, 2024, the Company had cash of $188,806, while accounts payable and accrued expenses totaled $15,174,493 and the Company had an accumulated deficit of $48,766,677. Therefore, in order to sustain itself, it is imperative that the Company secure a source of funds to provide further working capital as the Company does not have sufficient cash on hand. Management of the Company believes it will be difficult to secure suitable financing that would allow it to continue to pursue ultimate development of the Property. Therefore, on Dec. 14, 2023, the Company entered into a non-exclusive, success-based agreement with an unrelated third party to seek a buyer for all or part of the Property or, alternatively, to seek a joint venture partner for the project. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/2uc9srhd About DiamondHead Headquartered in Alexandria, Va., Diamondhead Casino Corporation owns, operates, and manages a casino resort. The Company constructs a casino resort and hotel and associated amenities. Diamondhead Casino serves customers in the United States. As of Dec. 31, 2024, the Company had $5.6 million in total assets, $20.3 million in total liabilities, and a total stockholders' deficit of $14.7 million. DIOCESE OF SAN FRANCISCO: Court Permits Trial Cases to Proceed -------------------------------------------------------------- Judge Dennis Montali of the United States Bankruptcy Court for the Northern District of California will grant in part the motion of the Roman Catholic Archbishop of San Francisco's Official Committee Unsecured Creditors for an order granting certain trial-ready survivors relief from the automatic stay to pursue state court litigation. Prior to bankruptcy, the Debtor and other California based dioceses and Catholic entities were parties to a matter pending in the Superior Court of California, County of Alameda, entitled In re Northern California Clergy Cases, JCCP No. 5108 ("Coordinated Proceedings"). On Dec. 5, 2022, the court in the Coordinated Proceedings identified five cases described as "Bellwether Cases" for trial. Two of those cases (the "Trial Cases") are pending against Debtor (and no other defendant) in San Francisco Superior Court. The Trial Cases were days away from trial when Debtor filed its Chapter 11 case on Aug. 21, 2023. Now, almost twenty months into this Chapter 11 case, the OCC filed the Motion to obtain relief from the automatic stay to permit the Trial Cases to proceed to trial. Debtor and certain insurers opposed that Motion. No party has questioned the standing of the OCC to act on behalf of the individual plaintiffs in the Trial Cases; no party has questioned the standing of the Insurers to file the Objection. The Court will overrule the Debtor's opposition and certain insurers' objection. In a complex Chapter 11 reorganization where full payment by a debtor, with or without assistance of insurance, is highly unlikely, and others may be adversely impacted, denying such a motion would be appropriate. The present record, with no reason to suspect that allowed claims will not be paid in full, together with the active involvement of the OCC in bringing the Motion, supports granting the Motion, the Court concludes. The Court finds despite the protests of both the Debtor and Insurers that allowing the Trial Cases to proceed will interfere with Debtor's mediation and reorganization efforts, neither have provided anything but responses without specifics to support their contention. The Court concludes that more good than harm will be achieved, more progress forward than retreat backward or status quo will be the case, by granting the Motion but delaying the effectiveness of that grant for a short period. This will permit if not encourage the parties and the mediators to have a meaningful impact on the case. Having considered all of the applicable factors, and weighing the interest of the parties and the potential for harm on both sides, the Court exercises its discretion and will grant the Motion, effective June 30, 2025. This brief pause is to allow more time for ongoing mediation, potentially to achieve a global resolution of matters that would render adjudication of the Trial Cases unnecessary. After that, all sides will need to attend to both the trials and the mediation. Concurrent with this Memorandum Decision, the Court is issuing an order granting the Motion and permitting the Trial Cases to proceed without regard to and free of the automatic stay, effective as of June 30, 2025. A copy of the Court's decision is available at https://urlcurt.com/u?l=343nho from PacerMonitor.com. About The Roman Catholic Archbishop of San Francisco The Roman Catholic Archbishop of San Francisco filed a Chapter 11 petition (Bankr. N.D. Cal. Case No. 23-30564) on Aug. 21, 2023, with $100 million to $500 million in both assets and liabilities. Judge Dennis Montali oversees the case. The Debtor tapped Felderstein Fitzgerald Willoughby Pascuzzi & Rios, LLP and Sheppard, Mullin, Richter & Hampton LLP as counsel. Weintraub Tobin Chediak Coleman & Grodin as special litigation counsel. Weinstein & Numbers, LLP as special insurance counsel. GlassRatner Advisory & Capital Group LLC d/b/a B. Riley Advisory Services as financial advisor. Omni Agent Solutions, Inc., is the administrative agent. DMG PRACTICE: S&P Alters Outlook to Stable, Affirms 'B-' ICR ------------------------------------------------------------ S&P Global Ratings revised its outlook on DMG Practice Management Solutions LLC (with affiliates Duly Health and Care) to stable from negative and affirmed all its ratings, including the 'B-' issuer credit rating. S&P said, "The stable outlook reflects our expectation that DMG will maintain revenue growth in the mid-single-digit percent area in 2025, supported by organic growth in its fee-for-service segment and more covered lives under its capitated revenue segment. We also expect break-even to modestly positive adjusted free operating cash flow (FOCF) beginning in 2025." DMG (with affiliates Duly Health and Care) improved profitability in 2024 through cost-reduction efforts and increased operational efficiency, raising EBITDA margin 2%-3%. S&P expects another 1%-2% increase in 2025 with access to sufficient liquidity as it improves its operational performance ahead of 2027 maturities. Further, the recently announced favorable 2026 Medicare Advantage rates for insurers provide significant tailwinds for DMG's value-based care business in 2026. DMG improved profitability in 2024. The company's EBITDA benefited from cost-saving and business optimization initiatives it implemented beginning in the last quarter of 2023, improving margin more than 240 basis points (bps). S&P said, "We expect DMG to build on this momentum with a 50-100 bps increase in 2025 and 2026. We believe the value-based care utilization rate will remain steady at current levels (due to a rapidly aging U.S. population) and the medical loss ratio elevated over the next few years, creating an impediment to margin expansion for providers." S&P said, "Revenue growth underperformed our expectations in 2024, but the 2026 rate increase should lift value-based care. The adverse impact of the first year of phased implementation of the Centers for Medicare and Medicaid Services hierarchical condition categories risk adjustment model (V28) resulted in lower-than-expected revenue growth in capitated revenue. This was partially offset by the company's renewed focus on its fee-for-service segment, with still muted growth of 3.4% in 2024. We expect DMG to expand revenue about 5% in 2025 due to a continued focus on its fee-for-service offerings and more clinician recruitment efforts. We believe this growth will be slightly offset by temporary headwinds in value-based care due to unsupportive reimbursement rates for 2025, and continued implementation of the V28 model. In 2026, we expect the segment to expand in the high-single-digit percent area due to the $25 billion Medicare Advantage rate increase while fee-for-service continues at a mid-single-digit percentage rate. "Despite negative cash flow in 2024, we expect it to break even in 2025 and increase substantially in 2026. The greater-than-expected impact of the new risk model implementation and one-time costs related to business optimization subdued margin expansion efforts last year. However, we expect break-even reported FOCF in 2025 due to continued operational improvement and the fruition of its business optimization. We expect continued momentum through 2026 and over 3% reported FOCF to debt because of a higher reimbursement rate, improved utilization of resources, and further cost containment efforts. "We expect sufficient liquidity due to DMG's fully available revolver and accounts receivable securitization facility. DMG has continued to focus on revenue cycle management, which we expect to benefit cash flow and liquidity through 2026. We believe the maturity extensions for both facilities through 2027 provides a longer runway for DMG to continue to turn around and optimize its business despite market uncertainties ahead of its term loan maturity in 2028. "Our stable outlook reflects our expectation that DMG will maintain revenue growth in the mid-single-digit percents in 2025, supported by organic growth in its fee-for-service segment and more covered lives under its capitated revenue segment. We also expect break-even to modestly positive adjusted FOCF beginning in 2025. "We could lower the ratings on DMG if we consider its capital structure unsustainable over the long term. This could occur if we expect it cannot generate sustainably positive adjusted FOCF sufficient to cover its debt servicing and reduce leverage. "Although unlikely over the next 12 months, we could raise our rating on DMG if we expect it to maintain leverage below 5x and adjusted FOCF to debt above 5% even factoring in potential volatility in the value-based care market or unforeseen regulatory changes." DOMAN BUILDING: Moody's Alters Outlook on 'Ba3' CFR to Negative --------------------------------------------------------------- Moody's Ratings affirmed the ratings of Doman Building Materials Group Ltd. (Doman) including the Ba3 corporate family rating, Ba3-PD probability of default rating, and B1 ratings on the existing senior unsecured notes. At the same time, Moody's revised the outlook to negative from stable. The speculative grade liquidity rating (SGL) was downgraded to SGL-4 from SGL-3. The outlook change reflects the weak liquidity and the elevated near-term execution and refinancing risks of the company's CAD272 million (outstanding) notes maturing in May 2026 amid an increasingly uncertain economic and capital markets environment. However, Moody's continues to expect the company will continue its strong operational performance, which will support the company's refinancing efforts. Governance considerations were a key ESG driver of the rating action, reflecting the company's tolerance for financial strategies that lead to increasing refinancing risk. RATINGS RATIONALE Doman's rating (Ba3 negative) benefits from: (1) strong positions in the Canadian building materials distribution and North American pressure treated lumber markets; (2) good geographical diversification with some vertical integration; (3) good repair, renovation and remodeling market fundamentals with decent long-term growth prospect; (4) Moody's expectations that financial leverage will decline but remain around 4x over the next 12-18 months. The rating is constrained by (1) concentration in the North American renovation, repair and remodel end market (primarily decking and fencing); (2) exposure to sudden and sharp drops in wood products prices that negatively impact its building materials distribution business segment; (3) expected weaker demand as the rate of new housing starts decline in both the US and Canada; (4) potential integration and financial challenges as the company pursues growth through acquisition; and (5) low operating margins mainly driven by its building materials distribution segment. The negative outlook reflects Doman's weakened liquidity that is driven by approaching debt maturity of 2026 notes that needs to be refinanced. Moody's also expects the company's financial leverage will remain around 4x in 2025 and 2026. Doman has weak liquidity (SGL-4) with about CAD230 million of liquidity sources compared to uses of CAD272 million. Sources of liquidity consist of CAD14 million of cash (as of December 2024), about CAD154 million of availability under its CAD580 million revolving credit facility maturing in April 2028, and Moody's expectations of positive free cash flow of about CAD60 million through mid-2026. The liquidity uses are comprised of CAD272 million notes that mature in May 2026. Doman's covenants for the revolver require the company to maintain a minimum EBITDA, which Moody's expects the company to comfortably maintain. Most of the company's assets are encumbered. The B1 ratings on the company's CAD325 million ($272 outstanding) senior unsecured notes maturing in 2026 and the CAD365 million senior unsecured notes due 2029 are one notch below the Ba3 CFR, reflecting the noteholders' subordinate position in the company's capital structure behind the secured CAD580 million asset based revolving credit facility expiring in 2028 (unrated). FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company's market position grows, adjusted debt to EBITDA is sustained below 3x, retained cash flow to debt is sustained above 15%, and improve and maintain good liquidity. The ratings could be downgraded if the company doesn't refinance the 2026 notes in a timely manner, the company's operational performance deteriorates significantly, leverage is sustained above 4.5x, RCF/adjusted debt is sustained below 5%, or liquidity weakens. Headquartered in Vancouver, Doman Building Materials Group Ltd. is a distributor of building materials and home renovation products and a leading producer of pressure treated wood products in North America. The principal methodology used in these ratings was Paper and Forest Products published in August 2024. DOW CORNING: 9th Cir. Affirms Ruling in Korean Claimants' Case -------------------------------------------------------------- In the appealed case styled as KOREAN CLAIMANTS, Interested Parties-Appellants, v. DOW SILICONES CORP., et al., Interested Parties-Appellees, No. 25-1004 (6th Cir.), Judges Jeffrey S. Sutton, Chad A. Readler, and Rachel S. Bloomekatz of the United States Court of Appeals for the Sixth Circuit affirmed the judgment of the United States District Court for the Eastern District of Michigan granting a motion to terminate Dow's funding obligations under the bankruptcy plan. The saga of Dow Corning Corporation's bankruptcy continues. Once the longtime leader of silicone-gel breast-implant manufacturing in the United States, the company's success abruptly ended in 1992 when the Food and Drug Administration ordered sharp restrictions on using such implants, given their connection to various auto-immune diseases. Hundreds of thousands of possibly affected implant recipients sued shortly thereafter, driving Dow to file for reorganization under Chapter 11 of the Bankruptcy Code in 1995. In this latest installment, the self-described Korean Claimants, a group of South Korean residents who opted to settle their claims and now seek over $6 million, challenged a motion to terminate Dow's funding obligations under the bankruptcy plan. The district court granted the motion over their objections. Under the bankruptcy plan's funding agreement, Dow's financial obligations end when all Allowed Claims for enumerated classes that include the Korean Claimants and all other obligations have been paid, all Claims filed have been liquidated and paid or otherwise finally resolved, and no new timely Claims have been made. The Sixth Circuit emphasizes that each of these conditions has been met. The Claims Administrator, an individual assigned to oversee the processing and payment of Claims by the Settlement Facility, performed due diligence for many claims -- including those pursued by the Korean Claimants -- and confirmed that all eligible claimants who complied with the deadlines and procedures required had received their checks. Likewise, the Independent Assessor, a third party assigned to oversee and assist "the development of projected funding requirements, explained that based on the claim and financial data, all timely claims that are eligible for payment and that have met the requirements established by the district court for payment have been sent a payment. The Independent Assessor therefore concluded that no pending outstanding claims remain to be paid. Lastly, no new claims can be made because the final deadlines have passed for filing claims and distributing payments. Resisting this conclusion, the Korean Claimants argue that the phrases "Allowed Claims" and "otherwise finally resolved” are ambiguous. The Circuit Judges disagree. They say these contested provisions of the bankruptcy plan are "reasonably susceptible of only one meaning." A copy of the Court's decision is available at https://urlcurt.com/u?l=rFDdke About Dow Corning Dow Corning Corp. -- http://www.dowcorning.com/-- produces and supplies more than 7,000 silicon-based products and services to more than 25,000 customers worldwide. Dow Corning is equally owned by The Dow Chemical Company and Corning Incorporated. The Company filed for Chapter 11 protection on May 15, 1995 (Bankr. E.D. Mich. Case No. 95-20512) to resolve silicone implant-related tort liability. The Company owed its commercial creditors more than $1 billion at that time. A consensual Joint Plan of Reorganization, amended on Feb. 4, 1999, offering to pay commercial creditors in full with post-petition interest, establish a multi-billion-dollar settlement trust for tort claims, and leave Dow Corning's shareholders unimpaired, took effect on June 30, 2004. DR. JOHN C. DRAGON: Seeks Subchapter V Bankruptcy in Virginia ------------------------------------------------------------- On April 17, 2025, Dr. John C. Dragon, OD & Associates PLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Virginia. 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 Dr. John C. Dragon, OD & Associates PLC 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. Dr. John C. Dragon, OD & Associates PLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 25-70854) on April 2, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. The Debtor is represented by Paul Driscoll, Esq. at ZEMANIAN LAW GROUP. E.W. SCRIPPS: Fitch Corrects April 15 Ratings Release ----------------------------------------------------- Fitch Ratings issued a correction of a press release on The E.W. Scripps Company published on April 15, 2025. It removes the Stable Outlook for Scripps' IDR, which was included in error. The IDR does not have an Outlook. The amended ratings release is as follows: Fitch Ratings has downgraded The E.W. Scripps Company's Long-Term Issuer Default Ratings (IDR) to 'RD' from 'CCC-'. Fitch has also downgraded the issue-level ratings of the old senior secured term loan Bs to 'C' with a Recovery Rating of 'RR2' from 'CCC+'/'RR2', and subsequently has withdrawn them. In addition, Fitch has assigned ratings of 'CCC+'/'RR1' to the new senior secured TLBs and revolving credit facilities, affirmed the senior secured notes at 'CCC+' with a revised recovery rating of 'RR1' from 'RR2', and affirmed the senior unsecured notes at 'C'/'RR6'. Fitch has also removed from Rating Watch Negative the ratings of the secured facilities subject to the DDE. Fitch has subsequently upgraded Scripps' IDR to 'CCC-' following the closure of its transaction support agreement (TSA) on April 10, 2025. This upgrade reflects a slightly improved debt maturity profile, with the 2027 unsecured notes as the next major maturity and elevated two-year average EBITDA leverage, which Fitch expects to rise further in a non-political year, with a challenging maturity schedule. Fitch has withdrawn the ratings of the $585 million revolving credit facility and the term loans due in 2026 and 2028. These facilities are no longer considered by Fitch to be relevant to its coverage because they have been terminated by the company as part of its TSA debt restructuring transactions. Key Rating Drivers Temporary Relief; Post-TSA Capital Structure: The TSA refinancing transactions defer refinancing risk until 2027 when the unsecured notes are due. With term loan maturities extended to 2028 and 2029, Fitch expects the company to focus on the monetization of the next non-presidential political cycle to partially mitigate the refinancing risk associated with the 2027 notes. While this transaction provides a temporary reprieve, it does not significantly address the issue of high debt levels. Consequently, Fitch anticipates more near-term distressed debt exchange (DDE) transactions as the company negotiates with holders of the 2027 unsecured notes to extend maturities. Unsustainable Capital Structure; Diminished FCF: Fitch believes Scripps' two-year average leverage will continue to push higher over the next two years, which will only increase the pressure on the company to come to favorable terms with multiple tranches of existing bondholders and ultimately the same group of existing lenders that have agreed to extend maturities into the 2028/2029 time frame. Fitch does not expect Scripps' core fundamental business will grow rapidly enough over this time frame to meet their upcoming maturity obligations. Highest National Advertising Exposure: The national advertising market has slowed over the past four years due to high interest rates post-pandemic, limiting budgets and increasing competition from digital media. Digital advertising provides better targeting than traditional linear media, impacting Scripps' performance as key sectors such as automotive, travel, retail, and financial services have not fully returned to pre-pandemic levels. This has undermined Scripps' national advertising performance compared to peers with a more balanced national and local media presence. Retransmission Revenue Growth Concerns: Fitch believes the consistent growth of the high-margin retransmission business might be peaking due to rising cable network costs and continuing erosion of the subscriber base, as subscribers opt for alternative video content distributors. This trend will increase Scripps' dependence on core advertising, reflecting a more volatile operating profile. Peer Analysis Scripps' 'CCC-' rating reflects the company's limited liquidity, accelerating secular challenges, declining profitability, and sustained elevated leverage. Fitch also notes a heightened refinancing risk over the medium term, as the company faces significant debt maturities starting in 2027. The company's profitability and financial flexibility have been challenged by weaker-than-expected national advertising spending and increasingly higher TV cable churn rates, partially offset by resilient local advertising demand and a consistent but decelerating retransmission business. Key Assumptions - Core advertising declines to high single digits in 2025, as a result of a slower demand in both local and national during a non-political year, modestly rises in 2026 to low single digits, and then gradually increases to low to mid-single digits by the end of 2028 capitalizing on the operating resilience of its local advertising operations offset by ongoing secular pressures of the retransmission and networks businesses; - For 2026 and 2028, political revenues of around $270 million per election year; - Retransmission and carriage revenue generation faces significant secular challenges primarily driven by increasingly higher TV cable churn rates due to increasing popularity of streaming services, reflecting a declining trend at a low-single-digit pace over the next four years; - Scripps Network revenue grows to low single digits during the initial part of the projection but then gradually declines at a low-single-digit pace by the end of the projected period, driven by lower rates of renewal over the last three years of the rating horizon; - EBITDA margins fluctuate, reflecting even-year political revenues, but improve due to a mix shift toward higher-margin retransmission revenue and an improved cost structure resulting in margins fluctuating between 15% and 20% throughout the rating horizon. - Capex intensity at 3.0% of total revenue annually. Recovery Analysis The recovery analysis assumes that Scripps would be considered a going concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. EBITDA Scripps' going-concern EBITDA is based on pro forma LQ8A EBITDA. Fitch assumes post-bankruptcy operating performance emergence under stress due to consistent and increasingly higher declines in TV cable subscribers, a weakened cable network position to effectively manage the cost structure of the retransmission segment, impacting revenue and operating profitability, and sluggish advertising markets. Fitch anticipates that traditional media, including television, will once more be disproportionately affected by the pullback in advertising and the rising competition from alternative media. This results in a going-concern EBITDA of $400 million, representing approximately a 30% reduction from the referenced LQ8A EBITDA. Multiple Fitch employs a 5.5x distressed enterprise value multiple reflecting the value present in the company's Federal Communications Commission licenses in small- and medium-sized U.S. markets. This multiple is in line with the median telecom, media and technology emergence enterprise value/EBITDA multiple of 5.5x. The analysis also incorporates the following: - Public trading enterprise value/EBITDA multiples typically of 8.0x to 11.0x; - Recent M&A transaction multiples of 7.0x to 9.0x including synergies (Gray Television acquired Raycom Media for $3.6 billion in January 2019 including $80 million of anticipated synergies, or 7.8x; Apollo Global Management, LLC acquired Cox Media for $3.1 billion in February 2019 before synergies, or 9.5x; Nexstar Media Group acquired Tribune Media Company in September 2019 for $7.2 billion, including the assumption of debt and $185 million of outlined synergies, or 7.5x; Nexstar sold 22 stations to three buyers as required under the terms of the Tribune acquisition for a blended 7.5x); - Scripps announced the acquisition of 15 television stations from Cordillera Communications in October 2018 for $521 million, or 8.3x, including $8 million in outlined synergies and the acquisition of eight stations from Nexstar in March 2019 for $580 million at an 8.1x multiple of average two-year EBITDA, excluding the New York City CW affiliate, WPIX. Fitch estimates an adjusted, distressed enterprise valuation of roughly $2.2 billion, resulting in a 'B-'/'RR1' senior secured Recovery Rating, and a 'C'/'RR6' unsecured debt Recovery Rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Another distressed debt exchange transaction as defined by Fitch's "Corporate Rating Criteria" or the commencement of a bankruptcy process; - Further liquidity constraints. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Demonstrated execution of operational improvements resulting in EBITDA margin expansion, leading to stronger free cash flow (FCF) and an improved liquidity position. - Successful refinancing of upcoming debt maturities, including the $426 million of 5.875% unsecured notes maturing in 2027, while avoiding a distressed debt exchange as defined by Fitch's "Corporate Rating Criteria." Liquidity and Debt Structure As of Dec. 31, 2024, Scripps had $24 million in cash and cash equivalents and approximately $578 million available to borrow under its existing revolving credit facility, net of $7 million in outstanding letters of credit, resulting in a total liquidity position of $602 million. The fully drawn $70 million non-extended revolving credit facility expires on Jan. 7, 2026, marking the company's next debt maturity. The new credit agreement governs the new revolving credit facilities and senior secured term loan Bs. The credit agreement contains a springing maturity if the 2027 unsecured notes are not fully refinanced 180 days prior to maturity. At close of the transaction, the company had $362 million outstanding under its accounts receivable facility, $70 million outstanding under its non-extended revolving facility and $107 million under its new $208 million revolving credit facility due in 2028. Issuer Profile Scripps is the fourth-largest TV broadcaster in the U.S. with 60 stations in 40+ markets, serving audiences through a diversified portfolio of local and national media brands. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery ----------- ------ -------- The E.W. Scripps Company LT IDR RD Downgrade LT IDR CCC- Upgrade senior secured LT CCC+ New Rating RR1 senior unsecured LT C Affirmed RR6 senior secured LT WD Withdrawn senior secured LT C Downgrade RR2 senior secured LT WD Withdrawn senior secured LT CCC+ Affirmed RR1 ENTRUST ENERGY: Trustee Challenges ERCOT's Motion to Dismiss Claims ------------------------------------------------------------------- Ange\élica Serrano-Roman of Bloomberg Law reports that the trustee in charge of Entrust Energy Inc.'s liquidation has pushed back against ERCOT's renewed effort to dismiss her lawsuit, asserting that claims of constitutional violations and gross negligence are well-founded and should proceed to the discovery stage. Filed Thursday, April 17, 2025, in the U.S. Bankruptcy Court for the Southern District of Texas, the trustee's response argues the case should move forward to allow the court to determine the extent of damages—allegedly caused by ERCOT's gross negligence during the 2021 winter storm and Entrust's resulting customer losses—which could potentially reduce ERCOT's claims against the estate. About Entrust Energy Houston, Texas-based Entrust Energy, Inc. generates, transmits and distributes electrical energy to homes and businesses. Entrust Energy and 14 of its affiliates sought Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Lead Case No. 21-31070) on March 30, 2021. At the time of the filing, Entrust Energy disclosed total assets of between $100 million and $500 million and total liabilities of between $50 million and $100 million. Judge Marvin Isgur oversees the cases. The Debtors tapped Baker & Hostetler, LLP and Alvarez & Marsal North America, LLC as their legal counsel and financial advisor, respectively. BMC Group, Inc., is the claims noticing and solicitation agent. The U.S. Trustee for Region 7 appointed an official committee of unsecured creditors in the Debtors' Chapter 11 cases on April 28, 2021. McDermott Will & Emery, LLP and FTI Consulting, Inc., serve as the committee's legal counsel and financial advisor, respectively. ERC MANUFACTURING: Hires Jose L. Ortiz Torres as Accountant ----------------------------------------------------------- ERC Manufacturing, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Mr. Jose L. Ortiz Torres, a professional practicing in Puerto Rico, as accountant. The professional will provide these services: a. close out the Debtor's books as of the date of the filing of this case, and to open new books as of the next thereafter; b. establish a new bookkeeping system to replace the system heretofore used by the Debtor; c. prepare the periodic statements of the Debtor in Possession's operations as required by the rules of this court; d. prepare and file Debtor's state and federal tax return for the fiscal year which ended in the semester prior to the date of the filing of this case; e. prepare General Ledger and Disbursements Register; f. reconcile the account; g. prepare Certified Interim Financial Statement as needed; h. prepare annual Financial Statements and Returns; i. tax and management counseling; j. representation in taxes investigations; and k. generate the monthly Operation reports. Mr. Torres will be paid at $300 per month. He will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Torres disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. He can be reached at: Jose L Ortiz Torres 368 Calle De Diego 1108, Apt 1108 San Juan, PR 00923 Tel: (787) 566-7397 About ERC Manufacturing, Inc. ERC Manufacturing Inc. owns the property located at Carr 814 Km 0.8 Cedro Abajo, Naranjito, Puerto Rico, spanning 6,977.84 square meters. It includes a two-story commercial office building, two metal concrete industrial buildings, 28 parking spaces, two offices, two terraces, two workshops, two mezzanines, and two bathrooms. The appraised value is $213,000, as of July 27, 2016. ERC Manufacturing Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-00475) on February 4, 2025. In its petition, the Debtor reports total assets of $785,322 and total liabilities of $1,599,734. The Debtor is represented by Juan C. Bigas, Esq., in Ponce, Puerto Rico. EXPANSION INDUSTRIES: Nexmark Holds Public Auction -------------------------------------------------- Nexmark LLC scheduled a public sale on April 14, 2025, for the sale of all rights, title, and interest in all of the assets of Expansion Industries LLC's tangible personal property. For further information regarding the sale contact: John D. Gaither Neligan LLP 4851 LBJ Freeway, Suite 700 Dallas, Texas 75244 Email: jgaither@neliganlaw.com About Expansion Industries Expansion Industries, LLC, filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tex. Case No. 23-41828) on Sep. 29, 2023. In the petition signed by Kelly Winget, president, the Debtor estimated up to $50,000 in assets and up to $50 million in liabilities. Judge Brenda T. Rhoades oversees the case. DeMarco Mitchell, PLLC serves as the Debtor's counsel. EXPERT AUTOMOTIVE: Claims to be Paid from Continued Operations -------------------------------------------------------------- Expert Automotive Equipment, LLC, filed with the U.S. Bankruptcy Court for the District of Nevada a Plan of Reorganization for Small Business dated March 18, 2025. The Debtor, a Nevada limited liability company, was founded by Scot Salisbury more than 20 years ago. The Debtor operates from a single location in North Las Vegas, Nevada, selling, installing, and servicing automotive equipment, primarily automobile lifts. The purpose of this bankruptcy case is to preserve the Debtor's business, restructure its debt, and to allow Debtor to continue operating in the ordinary course. The Debtor's financial projections show that the Debtor will have projected disposable income of $781,601.00 over the next four years. The final Plan payment to general unsecured creditors, priority creditors, and (secured creditors) is expected to be paid in June 2028 assuming the Plan becomes effective in July 2025; all Allowed claims will be paid over 4 years. In the four years after the effective date, the Debtor projects net disposable income of $781,601.00 for the four years following the effective date and the Plan provides for $781,601.00 of payments to be made to the Debtor's creditors in the four years following the effective date as follows: (i) $70,000 to Allowed administrative claims; (ii) $14,059 to Allowed Priority tax claims; (iii) $8,252 to the State of Utah for its secured claim; (iv) $42,725 to First Citizens Bank & Trust Company for its secured claims; (v) $16,554 to Toyota Industries Commercial Finance, Inc. for its secured claim; (vi) $77,267 to Ford Motor Credit Company LLC for its secured claim; (vii) $518,940 to National Funding, Inc.; and (viii) no less than $33,804 to holders of Allowed general unsecured claims. This Plan of Reorganization proposes to pay creditors of the Debtor from its income from continued operations. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at nearly 100 cents on the dollar, and it may be higher. This Plan also provides for the full payment of administrative and priority claims. Class 18 consists of Non-Priority General Unsecured Claims. Each holder of a Class 18 Allowed non-priority general unsecured claim shall receive its pro rata share of $2987,724.00, plus any portion of the remaining $70,000.00 allocated for administrative claims remaining after payment of the Allowed administrative claims. These payments shall be made by the 15th day of the last month of each calendar quarter after the effective date for the 4 years after the effective date for a total of 12 payments. If the Allowed secured claims in Classes 2, 5, 6, 10, 14, and 15 are less than projected on Exhibit 2, the net difference in the payments between the projected payments to Classes 2, 5, 6, 10, 14, and 15 on Exhibit 2 and the actual payments to holders of Allowed secured claims during the 4 years after the effective date shall be paid to the holders of Class 18 allowed non-priority general unsecured claims on the 48th month after the effective date. Class 18 is impaired. Each Allowed Equity Interest Holder in the Debtor shall retain its equity securities. This Plan will be funded through cash flow generated from future operations of Reorganized Debtor's business. A full-text copy of the Plan of Reorganization dated March 18, 2025 is available at https://urlcurt.com/u?l=wjoPXh from PacerMonitor.com at no charge. Counsel to the Debtor: Michael J. Brock, Esq. 2470 St. Rose Parkway, Suite 208 Henderson, NV 89074 About Expert Automotive Equipment Expert Automotive Equipment LLC operates from a single location in North Las Vegas, Nevada, selling, installing, and servicing automotive equipment, primarily automobile lifts. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 24-15307) on October 10, 2024, with $500,001 to $1 million in assets and $1 million to $10 million in liabilities. Michael J. Brock, Esq., represents the Debtor as legal counsel. FOREVER 21: Creditors Investigate IP Sale to Authentic Brands Group ------------------------------------------------------------------- Daphne Howland of RetailDive reports thatA group representing Forever 21’s unsecured creditors has formally opposed the company's bankruptcy plan and is scrutinizing the transfer of its intellectual property to Authentic Brands Group, according to documents filed last week in the U.S. Bankruptcy Court for the District of Delaware. In its filing, the creditors' committee expressed concern that the company's chances of being sold as a going concern are slim, claiming Forever 21's valuable intellectual property was transferred before the bankruptcy filing to a subsidiary of Authentic Brands, which is affiliated with the company's majority stakeholders. This assertion references a statement from Stephen Coulombe, co-chief restructuring officer of F21 OpCo—the operating entity that filed for Chapter 11 on March 16, 2025. While Coulombe did not elaborate on any specific transaction, he stated that without the brand's core intellectual property, the retailer likely cannot continue operations. A spokesperson for Authentic Brands confirmed that the company assumed full ownership of Forever 21's IP sometime after early 2020, following a period of joint ownership with mall operators Simon Property Group and Brookfield. The bankruptcy proceedings, the spokesperson added, do not affect Authentic's continued ownership of the brand’s intellectual property. Forever 21's IP was initially acquired during its 2020 bankruptcy by a consortium of Authentic, Simon, and Brookfield, operating under the name Sparc Group. According to court filings from that year, the purchase included all intellectual property rights and licenses. Later in 2020, Sparc became a 50/50 joint venture between Authentic and Simon, with Brookfield exiting in 2021. Sparc itself did not retain any stake in the IP. Sparc has undergone multiple structural changes and was absorbed earlier this year into Catalyst Brands, a newly formed company that includes J.C. Penney and counts Authentic as an investor. Over the years, Sparc had acquired several brands out of bankruptcy, including Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica, all now part of Catalyst's portfolio. Catalyst has faced recent challenges, laying off 5% of corporate staff in February and an additional 9% in April. When the company launched in January, it announced that it was evaluating strategic options for Forever 21. 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 company 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. FTAI AVIATION: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed FTAI Aviation Ltd's (FTAI) Long-Term Issuer Default Rating (IDR) at 'BB-'. The Rating Outlook is Stable. Fitch has also affirmed the senior unsecured debt rating of FTAI's debt-issuing subsidiary, Fortress Transportation and Infrastructure Investors LLC (FTAI LLC) at 'BB-' and FTAI's preferred share rating at 'B' with a Recovery Rating of 'RR6'. Key Rating Drivers Niche Market Position: The affirmation of FTAI's ratings reflects its market position as a niche aviation leasing and aircraft engine maintenance firm focused mainly on aged aviation assets, good portfolio diversification and an unsecured funding profile. Elevated Leverage, Dividends: The ratings are constrained by the company's limited operating track record as a dedicated aviation lessor, elevated re-lease risk due to shorter term leases on engines, elevated leverage and weak tangible balance sheet capitalization, and historically weaker, albeit improving, profitability, with high interest expenses and dividend payouts. Stable Aviation Leasing Performance: The FTAI leasing portfolio was comprised of 109 aircraft and 312 engines with a combined net book value of around $2.3 billion at Dec. 31, 2024. Utilization rates are generally sound across the portfolio but are lower for engines, at 61% at YE24 compared to aircraft at 90%. Average remaining lease terms are shorter for engines (22 months versus 47 months for aircraft), which implies inherent re-lease risk. However, FTAI has managed well this well to date and is currently benefitting from engine supply shortages. Scaling of Aerospace Business: Over the past three years, FTAI has successfully ramped up its aerospace product offering, focusing on the maintenance and repair of CFM International CFM56 engines and, more recently, International Aero Engines (IAE) V2500 engines. The latter are typically utilized on popular, current technology narrowbody aircraft. Given its modular service approach and use of Parts Manufacturer Approved (PMA) spares, FTAI can service engines with quick turn-around times and at competitive rates. Its capabilities in this segment have been further strengthened by the recent acquisition of Lockheed Martin Commercial Engine Solutions (LMCES) in 3Q24, which, coupled with its QuickTurn facility enhanced capacity, can perform up to 1,350 CFM56 module overhauls and 500 engine tests annually. By leveraging a pool of feed-stock engines, which are effectively sourced through its engine lease channel, FTAI has scaled this business quickly, contributing 44% of adjusted EBITDA in 2024, with a stable YoY margin of around 35%. Supply-demand imbalances for aviation assets continue, and competition for maintenance slots remains tight. Fitch expects the EBITDA contribution of this business to surpass 50% over the next 12 months. This is favorable for FTAI's credit profile because it supports business model diversification and reduces reliance on more balance sheet-intensive aviation leasing activities. Volatile Pre-tax Profitability: FTAI reported pre-tax profit from operations of $14 million in 2024, down from a profit of $184 million in 2023. This yoy decline was driven primarily by the early termination of FTAI's management agreement with affiliate, Fortress Investment Group LLC (FIG), which resulted in a $300 million expense in 2024. Excluding this charge, pre-tax profits would have increased by 71% yoy. Net spreads (including maintenance income) were 13.1% in 2024, above the average of 11.9% from 2021-2024, which is higher than most peers given FTAI's focus on older aviation assets. As FTAI's earnings profile benefits from the more seasoned contributions of its aerospace product offering, Fitch expects profitability to remain sound and in line with recent core performance. Leverage Constrains Rating: Tangible equity (adjusted for 50% equity credit on FTAI's preferred share debt) was negative $148 million at YE24. This was down from negative $58 million at YE23 because the management agreement termination suppressed earnings and offset a $150 million capital injection to partially fund the termination. The full redemption of FTAI's Series A preference shares also exacerbated the capital depletion. While FTAI's balance sheet leverage (gross debt to adjusted tangible equity) remained negative at YE24, cash flow leverage, as calculated by Fitch (gross debt to adjusted EBITDA), improved to 4.4x at YE24 from 4.8x at YE23. As the aerospace products segment's contribution to consolidated adjusted EBITDA increases over time, cash flow leverage will be an increasingly relevant metric. Fitch expects positive tangible equity to be restored over the Outlook horizon. Failure to do so could result in downward rating pressure, particularly if earnings contributions from the aerospace product's capital-light business activities weaken. Fully Unsecured Funding Profile; Adequate Liquidity: FTAI's funding profile is fully unsecured, which allows for good financial flexibility. Following the issuance of $500 million of senior unsecured debt in 2024, re-financing risk is limited, with the nearest bond maturity in May 2028, when $1 billion of unsecured notes are due. Liquidity remains adequate in the absence of a committed order book, supported by $115 million of unrestricted cash, a recently upsized $400 million committed revolver, which was fully undrawn at YE24, and proceeds from aviation asset sales of $152 million in 2024. Stable Outlook: The Stable Outlook reflects Fitch's expectations that the company's aviation assets will continue to generate sound yields and its capital light aerospace business will continue to grow profitably to support business profile diversification. Fitch also expects that FTAI's tangible equity (adjusted for 50% equity credit on its preference share debt) will be restored over the Outlook horizon while sustaining cash flow leverage (adjusted gross debt to EBITDA) below 5x and maintaining adequate liquidity. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - An inability to restore positive tangible equity over the Outlook horizon; - A sustained increase in cash flow leverage above 5x, as calculated by Fitch; - A weakening in competitive positioning, particularly from a sustained weakness in aviation leasing activities or missteps in scaling the aerospace business; - A sustained reduction in funding flexibility, notably the introduction of secured debt leading to a shift in the funding profile being predominantly unsecured in nature; - Sizable aircraft and/or engine impairments, higher repossession activity, or difficulty re-leasing aircraft at economical rates; - A reduction in available liquidity. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A meaningful reduction in leverage, resulting in debt to tangible equity below 5.5x or debt to EBITDA below 3.0x; - A sustained improvement in profitability through cycles; - Maintenance of a predominantly unsecured funding profile; - Improved business profile diversification with profitable growth of capital light operations; - Strong risk management and credit performance through a full credit cycle. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS FTAI LLC's unsecured debt rating is equalized with FTAI's Long-Term IDR. This reflects the company's unsecured funding mix and Fitch's expectation for average recovery prospects in a stressed scenario. FTAI's preferred share rating is two notches below the Long-Term IDR. This reflects the subordination and heightened risk of non-performance of the instrument relative to other obligations. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The unsecured debt rating is primarily sensitive to changes in FTAI's Long-Term IDR and secondarily to unencumbered balance sheet assets relative to outstanding debt. A decline in unencumbered asset coverage or a material increase in secured debt could result in the notching of the unsecured debt rating down from the Long-Term IDR. The preferred share rating is primarily sensitive to changes in FTAI's Long-Term IDR and is expected to move in tandem with it. However, the preferred share rating could be downgraded by an additional notch to reflect further structural subordination if the company considers other hybrid issuances. ADJUSTMENTS The Standalone Credit Profile (SCP) has been assigned in line with the implied SCP. The Asset Quality score has been assigned below the implied score due to the following adjustment reasons: Risk profile and business model (negative). The Capitalization & Leverage score has been assigned above the implied score due to the following adjustment reasons: Risk profile and business model (positive). The Funding, Liquidity & Coverage score has been assigned below the implied score due to the following adjustment reasons: Liquidity coverage (negative). ESG Considerations Fitch does not provide ESG relevance scores for FTAI Aviation Ltd.,Fortress Transportation and Infrastructure Investors LLC. 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. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- FTAI Aviation Ltd. LT IDR BB- Affirmed BB- preferred LT B Affirmed RR6 B Fortress Transportation and Infrastructure Investors LLC senior unsecured LT BB- Affirmed BB- senior unsecured LT BB- Affirmed BB- GIGA WATT: Wins Bid to Dismiss Claims Appeal in Dam Lawsuit ----------------------------------------------------------- In the appealed case styled as JUN DAM, Appellant, v. MARK D. WALDRON, Trustee, Appellee, Case No. 2:25-cv-00076-SAB (E.D. Wash.), Chief Judge Stanley A. Bastian of the United States District Court for the Eastern District of Washington granted the motion of Mark D. Waldon, Giga Watt Inc.'s chapter 7 trustee, to dismiss the appeal of Jun Dam from an order that did not disallow or expunge his claim from the claims register of the United States Bankruptcy Court for the Eastern District of Washington. Appellee filed this Motion, asking the District Court to deny Dam's appeal for lack of appellate standing. The Giga Watt Project was formed to build and run a large-scale cryptocurrency mining operation. As part of the project, Giga Watt sold so-called "WTT Tokens" that entitled a token purchaser to use electricity generated by the Giga Watt facility to mine and generate cryptocurrency. The sales proceeds from the WTT Tokens totaled more than $22 million, which was held by Perkins Coie LLP in an escrow account. After the initial sale of tokens was complete, Perkins provided refunds to some purchasers, paying them from the escrow fund. Perkins subsequently transferred $21.6 million to Giga Watt entities, and by Feb. 22, 2018, the escrow account was depleted. Giga Watt filed for Chapter 11 bankruptcy on Nov. 19, 2018, in the Eastern District of Washington. Appellee Mark D. Waldron was appointed as the Chapter 11 Trustee on Jan. 24, 2019. On Nov. 30, 2020, Trustee Waldron commenced an adversary proceeding against Perkins alleging that Perkins's disbursement of the escrow funds violated a fiduciary duty that resulted in Giga Watt's collapse. On Dec. 15, 2020, the Bankruptcy Court entered an order approving the employment of Potomac Law Group as special litigation counsel in the Adversary Proceeding. On Dec. 16, 2020, Appellant filed a class action lawsuit in this Court. The class members consisted of individuals who had purchased WTT Tokens. PLG ultimately reached an agreement to settle both the Adversary Proceeding and the Class Action Suit, wherein Perkins agreed to pay $3 million to the bankruptcy estate and $4.5 million to the class members. On Oct. 4, 2023, the Bankruptcy Court approved the Settlement Agreement. On Feb. 2, 2024, the District Court entered a preliminary approval of the Settlement Agreement. The class members were allowed to object or opt-out, but none did, and the District Court then entered final approval of the Settlement Agreement on May 23, 2024. On Oct. 2, 2024, Trustee Waldron filed three omnibus objections to 283 claims that had been made against the bankruptcy estate, arguing that the claims should be disallowed and expunged from the Bankruptcy Court's claims register because they had been released under the Settlement Agreement. Although Trustee Waldron did not object to Dam's claim, on Jan. 7, 2025, the Bankruptcy Court granted Dam's motion to intervene. Specifically, the Bankruptcy Court reviewed Dam's filings related to the omnibus objections and allowed him to present oral argument on Jan. 22, 2025. On Jan. 30, 2025, the Bankruptcy Court granted Trustee Waldron's omnibus objections. However, the Order did not disallow or expunge Dam's claim, and it still remains on the claims register in the Bankruptcy Court. The District Court finds in this matter, Dam lacks standing because he can demonstrate neither Article III standing nor that he has been aggrieved by the Order. With regard to Article III standing, Dam cannot identify an injury in fact that this Court could redress. According to the District Court, the Order did not apply to his claim, so there is no injury, and reversing it would only provide redress to the individuals whose claims were disallowed and expunged from the claims register. With regard to whether Dam is aggrieved by the Order, it did not disallow or expunge his claim from the Bankruptcy Court's claims register. The District Court notes although the Order indicates that the same logic would apply to Dam's claim, his claim has not yet been addressed and Dam has not suffered from diminished property, increased burdens, or detrimental effects on his rights as a result of the Order. As Appellee points out, should Trustee Waldron object to Dam's claim in the future, he will have full opportunity to address whatever decision the Bankruptcy Court makes. In light of these considerations, Dam does not have standing to appeal the Bankruptcy Court's decision, and Appellee's Motion to Dismiss is granted, the District Court holds. A copy of the Court's decision is available at https://urlcurt.com/u?l=P38M2e from PacerMonitor.com. About Giga Watt Inc. Giga Watt Inc., a cryptocurrency mining services provider based in East Wenatchee, Washington, filed for Chapter 11 protection (Bankr. E.D. Wash. Case No. 18-03197) on Nov. 19, 2018. In the petition signed by Andrey Kuzenny, secretary, the Debtor estimated up to $50,000 in assets and $10 million to $50 million in liabilities. The case is assigned to Judge Frederick P. Corbit. Winston & Cashatt, Lawyers, led by shareholder Timothy R. Fischer, is the Debtor's counsel. The Office of the U.S. Trustee appointed an official committee of unsecured creditors on Dec. 19, 2018. The committee tapped DBS Law as its legal counsel. On Jan. 23, 2019, the court approved the appointment of Mark D. Waldron as the Chapter 11 trustee for the Debtor's estate. The Trustee was represented by CKR Law LLP. On Sept. 30, 2020, the court granted the United States Trustee's motion to convert the main bankruptcy case to Chapter 7. Mark D. Waldron is the Chapter 7 trustee. The Trustee is represented by Pamela M. Egan. GIGA WATT: Wins Bid to Dismiss Dam Lawsuit Over PLG Fees -------------------------------------------------------- In the appealed case styled as JUN DAM, Plaintiff, v. MARK D. WALDRON, Chapter 7 Panel Trustee; PAMELA M. EGAN, Attorney to Chapter 7 Trustee; POTOMAC LAW GROUP PLLC; and GIGA WATT BANKRUPTCY ESTATE, Defendants, Case No. 2:24-CV-00417-SAB (E.D. Wash.), Chief Judge Stanley A. Bastian of the United States District Court for the Eastern District of Washington granted the defendants' motion to dismiss the complaint with prejudice. The Giga Watt Project was formed to build and run a large-scale cryptocurrency mining operation. As part of the project, Giga Watt sold so-called "WTT Tokens" that entitled a token purchaser to use electricity generated by the Giga Watt facility to mine and generate cryptocurrency. The sales proceeds from the WTT Tokens totaled more than $22 million, which was held by Perkins Coie LLP in an escrow account. After the initial sale of tokens was complete, Perkins provided refunds to some purchasers, paying them from the escrow fund. Perkins subsequently transferred $21.6 million to Giga Watt entities, and by February 22, 2018, the escrow account was depleted. Giga Watt filed for Chapter 11 bankruptcy on Nov. 19, 2018, in the Eastern District of Washington. Defendant Mark D. Waldron was appointed as the Chapter 11 Trustee on Jan. 24, 2019. On Nov. 30, 2020, Trustee Waldron commenced an adversary proceeding against Perkins alleging that Perkins's disbursement of the escrow funds violated a fiduciary duty that resulted in Giga Watt's collapse. On Dec. 15, 2020, the Bankruptcy Court entered an order approving the employment of Defendant Potomac Law Group as special litigation counsel in the Adversary Proceeding. Pursuant to this employment, PLG was entitled to a 30% contingency fee of any recoveries obtained up to $10 million and a 25% contingency fee of any recoveries obtained that were greater than $10 million, subject to Bankruptcy Court approval. On Dec. 16, 2020, Plaintiff Jun Dam filed a class action lawsuit in the District Court. The class members consisted of individuals who had purchased WTT Tokens, and the class was represented by two law firms: Blood, Hurst & O'Reardon, LLP and the Western Washington Law Group, PLLP. PLG proceeded to work on the Adversary Proceeding for approximately three and a half years without objection -- over one year of which was spent negotiating with Perkins and Class Counsel. They ultimately reached an agreement to settle both the Adversary Proceeding and the Class Action Suit, wherein Perkins agreed to pay $3 million to the bankruptcy estate and $4.5 million to the class members. On Oct. 4, 2023, the Bankruptcy Court approved the Settlement Agreement. On Feb. 2, 2024, the District Court entered a preliminary approval of the Settlement Agreement. The class members were allowed to object or opt-out, but none did, and the District Court then entered final approval of the Settlement Agreement on May 23, 2024. On July 26, 2024, PLG filed its final fee application, seeking $900,000 (i.e., 30% of the $3 million adversary proceeding settlement), plus $1,648.15 in expenses. However, on Aug. 22, 2024, Dam filed an objection, asking the Bankruptcy Court not to disburse any funds from the bankruptcy estate to PLG. On Sept. 17, 2024, the Bankruptcy Court granted PLG's application over Dam's objection, noting that counsel for PLG indicated that she spent 2,536.8 hours working on the Adversary Proceeding and that her typical rate is $600. Thus, PLG estimated its services were valued at $1,522,080 and the Bankruptcy Court found that the requested $900,000 was reasonable. The fees were paid to PLG on Sept. 19, 2024. On Dec. 13, 2024, Dam filed a civil Complaint in this matter, alleging that Trustee Waldron and PLG engaged in fraudulent conduct, which led to the Bankruptcy Court awarding the fees in error. On Jan. 30, 2025, Defendants filed a motion, asking the District Court to dismiss the Civil Suit because, among other issues, Dam's claims were void as a violation of the Bankruptcy Court's automatic stay. Defendants ask the Court to dismiss this action without prejudice because: (1) Plaintiff's attempt to impose a constructive trust on the Perkins $3 million settlement proceedings and to otherwise recover those proceeds are void as an attempt to recover property of the estate and from the estate; (2) the Court lacks subject matter jurisdiction to grant relief from the stay; (3) the Court lacks subject matter jurisdiction over the claims against Trustee Waldron and PLG because Plaintiff failed to obtain the Bankruptcy Court's permission to sue Trustee Waldron and PLG; (4) Plaintiff fails to state a claim because Trustee Waldron and PLG are immune and the claims are released; and (5) the Complaint fails to establish personal jurisdiction over and fails to state a claim against the "Giga Watt Bankruptcy Estate" because the Giga Watt Bankruptcy Estate lacks the capacity to be sued. Defendants assert amending the Complaint would be futile because Plaintiff cannot remedy the lack of subject matter jurisdiction, Trustee Waldron or PLG's immunity, the release, or the estate's lack of capacity to be sued. The District Court agrees. The District Court finds the Complaint constitutes a violation of the automatic stay in the Bankruptcy Case and is therefore void. Moreover, the District Court does not have subject matter jurisdiction over the claims against Trustee Waldron and PLG. Finally, Plaintiff has failed to state a claim upon which relief may be granted. The District Court finds that granting leave to amend would be futile because additional allegations will not remedy the lack of subject matter jurisdiction or will state claims against defendants who are not subject to suit. A copy of the Court's decision is available at https://urlcurt.com/u?l=N4HvQp from PacerMonitor.com. About Giga Watt Inc. Giga Watt Inc., a cryptocurrency mining services provider based in East Wenatchee, Washington, filed for Chapter 11 protection (Bankr. E.D. Wash. Case No. 18-03197) on Nov. 19, 2018. In the petition signed by Andrey Kuzenny, secretary, the Debtor estimated up to $50,000 in assets and $10 million to $50 million in liabilities. The case is assigned to Judge Frederick P. Corbit. Winston & Cashatt, Lawyers, led by shareholder Timothy R. Fischer, is the Debtor's counsel. The Office of the U.S. Trustee appointed an official committee of unsecured creditors on Dec. 19, 2018. The committee tapped DBS Law as its legal counsel. On Jan. 23, 2019, the court approved the appointment of Mark D. Waldron as the Chapter 11 trustee for the Debtor's estate. The Trustee was represented by CKR Law LLP. On Sept. 30, 2020, the court granted the United States Trustee's motion to convert the main bankruptcy case to Chapter 7. Mark D. Waldron is the Chapter 7 trustee. The Trustee is represented by Pamela M. Egan. GIGA WATT: Wins Bid to Dismiss PLG Fees Appeal in Dam Suit ---------------------------------------------------------- In the appealed case styled as JUN DAM, Appellant, v. MARK D. WALDRON, Chapter 7 Panel Trustee; POTOMAC LAW GROUP PLLC, Appellees, Case No. No. 2:24-CV-00334-SAB (E.D. Wash.), Chief Judge Stanley A. Bastian of the United States District Court for the Eastern District of Washington granted the motion of Mark D. Waldron, Giga Watt Inc.'s Chapter 7 Trustee, and Potomac Law Group to dismiss the appeal filed by Jun Dam from an order granting PLG's final fee application in the amount of $900,000. Appellees filed this Motion, asking the District Court to deny Dam's appeal on equitable grounds. The Giga Watt Project was formed to build and run a large-scale cryptocurrency mining operation. As part of the project, Giga Watt sold so-called "WTT Tokens" that entitled a token purchaser to use electricity generated by the Giga Watt facility to mine and generate cryptocurrency. The sales proceeds from the WTT Tokens totaled more than $22 million, which was held by Perkins Coie LLP in an escrow account. After the initial sale of tokens was complete, Perkins provided refunds to some purchasers, paying them from the escrow fund. Perkins subsequently transferred $21.6 million to Giga Watt entities, and by Feb. 22, 2018, the escrow account was depleted. Giga Watt filed for Chapter 11 bankruptcy on Nov. 19, 2018, in the Eastern District of Washington. Appellee Mark D. Waldron was appointed as the Chapter 11 Trustee on Jan. 24, 2019. On Nov. 30, 2020, Trustee Waldron commenced an adversary proceeding against Perkins alleging that Perkins's disbursement of the escrow funds violated a fiduciary duty that resulted in Giga Watt's collapse. On Dec. 15, 2020, the Bankruptcy Court entered an order approving the employment of Appellee Potomac Law Group as special litigation counsel in the Adversary Proceeding. Pursuant to this employment, PLG was entitled to a 30% contingency fee of any recoveries obtained up to $10 million and a 25% contingency fee of any recoveries obtained that were greater than $10 million, subject to Bankruptcy Court approval. On Dec. 16, 2020, Appellant Jun Dam filed a class action lawsuit in the District Court. The class members consisted of individuals who had purchased WTT Tokens, and the class was represented by two law firms: Blood, Hurst & O'Reardon, LLP and the Western Washington Law Group, PLLP. PLG proceeded to work on the Adversary Proceeding for approximately three and a half years without objection -- over one year of which was spent negotiating with Perkins and Class Counsel. They ultimately reached an agreement to settle both the Adversary Proceeding and the Class Action Suit, wherein Perkins agreed to pay $3 million to the bankruptcy estate and $4.5 million to the class members. On Oct. 4, 2023, the Bankruptcy Court approved the Settlement Agreement. On Feb. 2, 2024, the District Court entered a preliminary approval of the Settlement Agreement. The class members were allowed to object or opt-out, but none did, and the District Court then entered final approval of the Settlement Agreement on May 23, 2024. On July 26, 2024, PLG filed its final fee application, seeking $900,000 (i.e., 30% of the $3 million adversary proceeding settlement), plus $1,648.15 in expenses. However, on Aug. 22, 2024, Dam filed an objection, asking the Bankruptcy Court not to disburse any funds from the bankruptcy estate to PLG. On Sept. 17, 2024, the Bankruptcy Court granted PLG's application over Dam's objection, noting that counsel for PLG indicated that she spent 2,536.8 hours working on the Adversary Proceeding and that her typical rate is $600. Thus, PLG estimated its services were valued at $1,522,080 and the Bankruptcy Court found that the requested $900,000 was reasonable. The fees were paid to PLG on Sept. 19, 2024. On Sept. 26, 2024, Dam filed his Notice of Appeal in the U.S. District Court for the Eastern District of Washington in case No. 2:24-cv-00334-SAB, contending that the award of fees were inappropriate due to lack of standing and other procedural issues. The main thrust of Dam's argument is that the release clause of the Settlement Agreement -- that was approved by the District Court -- is void and unenforceable. Putting his arguments aside, Dam was represented by legal counsel during the Class Action Suit and cannot now launch a collateral attack on the Settlement Agreement. Even assuming Dam could collaterally attack the Settlement Agreement, without PLG's services there would be no Settlement Agreement for Dam to dispute. PLG spent 2,536.8 hours working on the Adversary Proceeding over three and a half years -- over a year of which was spent negotiating the Settlement Agreement with Perkins and Class Counsel. And despite being present at the Settlement Agreement negotiations and receiving the opportunity to opt out of the Settlement Agreement, Dam never objected to PLG's representation or opted out of the Settlement Agreement. In light of these facts, equity weighs in favor of dismissing the appeal and Appellee's Motion to Dismiss on Equitable Grounds is granted, the District Court holds. A copy of the Court's decision is available at https://urlcurt.com/u?l=YRJXRC from PacerMonitor.com. About Giga Watt Inc. Giga Watt Inc., a cryptocurrency mining services provider based in East Wenatchee, Washington, filed for Chapter 11 protection (Bankr. E.D. Wash. Case No. 18-03197) on Nov. 19, 2018. In the petition signed by Andrey Kuzenny, secretary, the Debtor estimated up to $50,000 in assets and $10 million to $50 million in liabilities. The case is assigned to Judge Frederick P. Corbit. Winston & Cashatt, Lawyers, led by shareholder Timothy R. Fischer, is the Debtor's counsel. The Office of the U.S. Trustee appointed an official committee of unsecured creditors on Dec. 19, 2018. The committee tapped DBS Law as its legal counsel. On Jan. 23, 2019, the court approved the appointment of Mark D. Waldron as the Chapter 11 trustee for the Debtor's estate. The Trustee was represented by CKR Law LLP. On Sept. 30, 2020, the court granted the United States Trustee's motion to convert the main bankruptcy case to Chapter 7. Mark D. Waldron is the Chapter 7 trustee. The Trustee is represented by Pamela M. Egan. GRAY MEDIA: Fitch Affirms & Then Withdraws B- IDR, Outlook Negative ------------------------------------------------------------------- Fitch Ratings has affirmed Gray Media, Inc.'s Long-Term Issuer Default Rating (IDR) at 'B-' with a Negative Rating Outlook. Fitch has also affirmed all the company's senior secured issue ratings at 'B+' with a Rating Recovery of 'RR2' and the unsecured notes at 'CCC'/'RR6'. Fitch has subsequently withdrawn all ratings due to commercial reasons. Fitch will therefore no longer provide rating or analytical coverage on Gray Media Key Rating Drivers High Leverage Expected Until 2026: Since acquiring Raycom Media, Inc. in 2019, and later Quincy Media, Inc. and Meredith Corporation's local media assets in 2021, Gray accumulated significant acquisition-related debt that weighed on the company's capital structure. L8QA EBITDA leverage peaked at around 7.0x at the closing of the Meredith acquisition. Gray has since focused on deleveraging via FCF generation. However, anticipated margin gains and strengthened political-cycle monetization did not materialize as expected due to a prolonged advertising recession in the national market, compounded by post-pandemic macroeconomic impacts that accentuated sector challenges. Since 2021, Gray has struggled to maintain margin gains, negatively affecting FCF, while prioritizing capex for its Assembly Atlanta development, leading to a slower-than-expected reduction in leverage. Fitch forecasts Gray's leverage to remain above 6.5x until 2026, with a modest decrease expected from margin gains as result of implemented cost-cutting initiatives. Improving Margins; Debt Reduction Efforts: Over the last four years, Gray's margins have declined from the mid-30%'s to the high-20%'s, reflecting a weakened linear advertising market caused by decreased national demand, rising operating costs, and lower political advertising revenue. The company's strategy to stabilize margins includes implementing $60 million in cost-saving initiatives, securing more profitable renewals of retransmission contracts leveraged by its premium local content, further developing its digital advertising infrastructure, and increasing retransmission exposure to multichannel video programming distributors (MVPDs) and other digital mediums. Fitch expects Gray to actively manage its capital structure, aiming to reduce leverage over the next two years through debt repayments derived from FCF generation or non-core asset divestitures, as $1.9 billion in debt matures in 2027 and 2028. Fitch believes Gray has sufficient time to generate cash to pay off its 2027 notes, paving the way for the refinancing of 2028 and 2029 debt maturities. In its rating case scenario, Gray is projected to generate approximately $210 million-$250 million on average in annual FCF over the next four years. Retransmission and Digital Expansion: Despite concerns about the retransmission business peaking due to rising cable network costs and subscriber base erosion, Gray benefits from its strong position as the largest owner of top TV stations. It provides premium local content while expanding exposure to MVPDs and digital platforms to counter cable network challenges. Additionally, Gray is enhancing its digital advertising solutions, leveraging local media infrastructure to mitigate national advertising underperformance. Underperforming National Advertising Market: Since late 2022, national advertising spending has significantly decelerated, revealing weaker-than-expected conditions for linear advertising segments amidst growing competition from digital advertising solutions. This slowdown was further exacerbated by a post-pandemic high-interest rate environment that constrained national advertising budgets. Although there has been gradual recovery, the market continues to lose share to the digital advertising sector. High Concentration to Advertising: Although Gray's revenue profile is balanced by a steady retransmission segment, its Core Advertising segment is highly exposed to the linear advertising market, representing approximately 44% of total revenue on a two-year average basis. Fitch anticipates persistent pressures in the linear advertising market over the short to medium term, mainly due to increasing digital advertising competition and sector challenges. Strong Television Portfolio: On a consolidated basis, Gray covers 37% of U.S. television households. Its strong portfolio of assets includes #1 ranked stations in 78 of its 113 markets (approximately 69%) and #2 ranked stations in another 21 (about 19%) during 2024. Station ranking is important to advertisers, especially for political advertising, with the #1 or #2 ranked stations garnering a large portion of political revenues directed at local television broadcasters. Industry Headwinds: The diversified media industry has faced significant macroeconomic and operating challenges over the past four years. This culminated in a linear advertising recession from 2H22 into 2023. Excluding political advertising demand, both the local and national advertising markets had inconsistent performance in 2024, with a sluggish national market coupled with a resilient but weaker local performance, accentuating a potential trend as the company enters an off-political cycle year. Potential Deregulation Initiatives: The new federal government administration is looking to revisit existing regulations in the sector regarding limitations on industry consolidation and commercial rights to direct negotiation with virtual MVPDs, among others. This could potentially have a positive impact on the sector business model. Peer Analysis Gray's 'B-' IDR reflects its smaller scale and higher leverage relative to the larger and more diversified media peers like Paramount Global (BBB-/Negative) and Warner Bros. Discovery, Inc. (BBB-/Stable). Although Gray has a similar leverage profile as The E.W. Scripps Company (CCC-), it benefits from more number one or number two ranked local stations and has significant exposure in political battleground states. Gray's Fitch-calculated EBITDA margins are at the upper end of the peer group. Key Assumptions - Core advertising revenue growing at a low single-digit reflecting extended weakness in the linear advertising market particularly at the national level, coupled with a negative to flattish local media performance, offset by increasingly higher monetization from its digital advertising spectrum. Fitch expects Gray to continue developing its digital advertising solutions over the rating horizon; - Political revenue around $490 million per year for 2026 and 2028 political cycles; - Retransmission consent revenue decreasing at low to mid single-digits in 2025, and then for the rest of the projection flattish revenue growth driven by ongoing secular challenges associated with increasingly higher linear TV cable churn rates, offset by Fitch's expectation that Gray will continue to negotiate profitable retransmission contracts with existing cable network operators but also increase exposure to virtual MVPDs and other alternative video distributors; - EBITDA margins at low-30%'s during political years and low-20%'s during non-political years. Fitch expects Gray to maintain margins around 30% on a L8QA basis, supported by recently announced cost-savings initiatives, higher digital advertising monetization and more profitable retransmission renewals; - $110 million of proceeds from asset sales in 2024; - Capex intensity (percentage of total revenue) ranging around 2.6% to 3.1% throughout the projection, reflecting only maintenance requirements; - $32 million of common dividends per year; - $52 million of preferred dividends per year; - A/R facility fully drawn throughout the projection, extending maturity in 2026 for three years; - Full prepayment of the outstanding balance of the 7.000% unsecured notes in 2026 with internal FCF generation; - Fully available revolver credit facility maturing by the end of 2027, extended for five years; - Refinancing the 2028 maturities with a mix of internal FCF and a new $775 million issuance of secured debt with an 11% coupon. Recovery Analysis The recovery analysis assumes that Gray would be considered a going-concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. EBITDA Gray's going-concern EBITDA is based on LQ8A EBITDA, considering the political cycle seasonality. Fitch updated Gray's going-concern LQ8A EBITDA to $700 million to capture accelerated linear market share declines driven by the advertising recession during 2022/2023, which Fitch does not expect the company to regain. In addition to ongoing margin erosion, as digital advertising and video streaming services become a more relevant alternative to linear advertising media. Multiple Fitch employs a 5.5x distressed enterprise value multiple reflecting the value present in the company's Federal Communications Commission licenses in small- and medium-sized U.S. markets. This multiple is in line with the median telecom, media and technology emergence enterprise value/EBITDA multiple of 5.5x. The analysis also incorporates the following: - Public trading enterprise value/EBITDA multiples typically from 8.0x to 11.0x; - Recent M&A transaction multiples of 7.0x to 9.0x including synergies (Gray Media acquired Raycom Media for $3.6 billion in January 2019 including $80 million of anticipated synergies, or 7.8x; Apollo Global Management, LLC acquired Cox Media for $3.1 billion in February 2019 before synergies, or 9.5x; Nexstar Media Group acquired Tribune Media Company in September 2019 for $7.2 billion, including the assumption of debt and $185 million of outlined synergies, or 7.5x; Nexstar then sold 22 stations to three buyers as required under the terms of the Tribune acquisition for a blended 7.5x). Fitch estimates an adjusted, distressed enterprise valuation of roughly $3.9 billion. Debt Fitch assumes a fully drawn revolver and 75% availability used under the A/R facility in its recovery analysis as credit revolvers are usually drawn during periods of financial distress. Gray had $3.8 billion in senior secured term loans and notes, $2.5 billion in unsecured debt, and $650 million of preferred equity. The recovery analysis results in a full recovery of the A/R Securitization facility. The secured first-lien debt recovers at 'RR2' reflecting its senior secured position in the capital structure with superior recovery prospects, resulting in a two-notch uplift from the IDR to an issue-level rating of 'B+'. For the senior unsecured notes, the recovery analysis results in a 'RR6' reflecting poor recovery prospects due to its unsecured nature, prompting a two-notch downgrade to an issue-level rating of 'CCC'. Fitch does not rate the preferred equity nor the A/R facility. RATING SENSITIVITIES Rating sensitivities do not apply as the ratings have been withdrawn. Liquidity and Debt Structure As of Dec. 31, 2024, Gray's liquidity position amounted to approximately $809 million, comprised of $135 million in cash and $674 million in borrowing capacity under its $680 million revolver, due in December 2027. Over the past four years, Gray has averaged about $250 million in FCF after dividends, and capital expenditures associated with the Assembly Atlanta development. Despite spending around $600 million on the studio during 2021-2023, Gray was still able to reduced its debt by about $620 million in 2022-2023. Fitch expects Gray to generate around $270 million-$330 million in FCF during political years and about $150 million during non-political years. On March 31, 2025, Gray announced a $100 million increase to its A/R Securitization Facility, raising the total commitments to $400 million and extending the facility until 2028. Additionally, Gray announced a $20 million increase to its $680 million revolving credit facility, bringing the total commitments to $700 million. These facility increases result in only a minimal impact on the recovery analysis of the senior secured debt facilities, with no change to the existing recovery ratings. Fitch does not rate the A/R securitization facility nor the $650 million Series A Preferred Stock held by Retirement Systems of Alabama (RSA). Fitch has determined that in accordance with established criteria that the Series A preferred stock receives 0% equity credit, and as such is included in Fitch's leverage calculations. Issuer Profile Gray Media, Inc. is the second largest U.S. television broadcaster, measured by total revenues and markets served. The company also owns video program production, marketing and digital businesses including Gray Digital Media, Assembly Studios, Raycom Sports, Tupelo-Raycom, and PowerNation Studios. 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 Following the withdrawal of the ratings for Gray Media, Fitch will no longer provide the associated ESG scores. 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 ----------- ------ -------- ----- Gray Media, Inc. LT IDR B- Affirmed B- LT IDR WD Withdrawn senior unsecured LT CCC Affirmed RR6 CCC senior unsecured LT WD Withdrawn senior secured LT B+ Affirmed RR2 B+ senior secured LT WD Withdrawn GUIDED THERAPEUTICS: Posts Net Loss of $2.4 Million in 2024 ----------------------------------------------------------- Guided Therapeutics, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $2.4 million for the year ended Dec. 31, 2024, compared to a net loss of $3.5 million for the year ended Dec. 31, 2023. Sterling Heights, Mich.-based UHY LLP the Company's auditor since 2007, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has recurring losses from operations, limited cash flow, and an accumulated deficit. These conditions raise substantial doubt about the Company's ability to continue as a going concern. At December 31, 2024, the Company had a negative working capital of approximately $5 million, accumulated deficit of $153.7 million, and incurred a net loss including preferred dividends of $2.5 million for the year then ended. Stockholders' deficit totaled approximately $4.9 million at December 31, 2024, primarily due to recurring net losses from operations. During the year ended December 31, 2024, the Company raised $0.8 million of proceeds from the sale of common stock and warrants in private placement offerings. During the year ended December 31, 2023, the Company received $0.4 million of proceeds from warrant exercises. The Company will need to continue to raise capital in order to provide funding for its operations and FDA/NMPA approval process. If sufficient capital cannot be raised, the Company will continue its plans of curtailing operations by reducing discretionary spending and staffing levels and attempting to operate by only pursuing activities for which it has external financial support. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/yzhe86kr About Guided Therapeutics Peachtree Corners, Ga.-based Guided Therapeutics, Inc. is a medical technology company focused on developing innovative medical devices that have the potential to improve healthcare. The Company's primary focus is the sales and marketing of its LuViva Advanced Cervical Scan non-invasive cervical cancer detection device. The underlying technology of LuViva primarily relates to the use of biophotonics for the non-invasive detection of cancers. LuViva is designed to identify cervical cancers and precancers painlessly, non-invasively and at the point of care by scanning the cervix with light, then analyzing the reflected and fluorescent light. As of Dec. 31, 2024, the Company had $1.4 million in total assets, $6.3 million in total liabilities, and a total stockholders' deficit of $4.9 million. HARRCO TRANSPORTATION: Seeks to Hire Lorium Law as Counsel ---------------------------------------------------------- Harrco Transportation Services Inc. and its affiliate seek approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Lorium Law as counsel. The firm will provide these services: (a) give advice to the Debtor with respect to its powers and duties as a debtor in possession under Chapter 11 and the continued management of its business operations; (b) advise the Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the Court; (c) prepare and/or defend motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the administration of the case; (d) protect the interest of the Debtor in all matters pending before the Court; and (e) represent the Debtor in negotiation with its creditors in the preparation of a plan and confirmation of same. The firm will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Grant disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Joe M. Grant, Esq. Lorium Law 197 S. Federal Hwy, Suite 200 Boca Raton, FL 33432 Tel: (561) 361-1000 About Harrco Transportation Services Inc. Harrco Transportation Services Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-12323) on March 3, 2025, with $0 to $50,000 in assets and liabilities. Judge Peter D. Russin presides over the case. Joe M. Grant, Esq. represents the Debtor as legal counsel. HERITAGE COAL: Disputes Former Owner's Liens in Chapter 11 Spinoff ------------------------------------------------------------------ Emlyn Cameron of Law360 reports that Heritage Coal & Natural Resources LLC, currently undergoing bankruptcy, has petitioned a Delaware judge to dismiss lien claims asserted by its former owner and general manager, arguing that the equipment in question is already pledged to pre-bankruptcy lenders. About Heritage Coal & Natural Resources LLC Heritage Coal & Natural Resources LLC is a coal mining company based in Meyersdale, Pennsylvania that specializes in coal extraction and processing operations in Somerset County. The company operates from its principal location at 1117 Shaw Mine Road and maintains multiple coal leases with regional landowners including Allegany Coal and Land Company, Beechwood Coal LLC, and Shaw Big Vein Coal Company for its mining operations. Heritage Coal & Natural Resources LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10602) on March 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million. Honorable Bankruptcy Judge Mary F. Walrath handles the case. The Debtor is represented by Jeffrey R. Waxman at Morris James LLP. HIGH WIRE: 2024 Net Loss Narrows to $385K ----------------------------------------- High Wire Network, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $384,826 attributable to the Company's common shareholders for the year ended Dec. 31, 2024, compared to a net loss of $14,486,000 in the same period of 2023. Revenue increased from $6,906,160 for the year ended Dec. 31, 2023 to $8,378,708 for the year ended Dec. 31, 2024. The Company generated operating losses in the years ended Dec. 31, 2024 and 2023, and High Wire has historically generated operating losses since its inception and has relied on cash on hand, sales of securities, external bank lines of credit, and issuance of third-party and related party debt to support cash flow from operations. As of and for the year ended Dec. 31, 2024, the Company had an operating loss of $8,554,067, cash flows used in continuing operations of $8,593,948, and a working capital deficit of $6,224,966. Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's auditor since 2014, issued a "going concern" qualification in its report dated Dec. 31, 2025, citing that the Company has incurred losses since inception, has negative cash flows from operations, and has negative working capital, which creates substantial doubt about its ability to continue as a going concern Management believes that based on relevant conditions and events that are known and reasonably knowable, its forecasts of operations for 12 months from the date of the filing of the consolidated financial statements in the Company's Annual Report on Form 10-K indicate improved operations and the Company's ability to continue operations as a going concern. The Company has contingency plans to reduce or defer expenses and cash outlays should operations not improve in the look forward period. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of management to raise additional equity capital through private and public offerings of its common stock, and the attainment of profitable operations. Management requires additional funds over the next twelve months to fully implement its business plan. Management is currently seeking additional financing through the sale of equity and from borrowings from private lenders to cover its operating expenditures. There can be no certainty that these sources will provide the additional funds required for the next twelve months. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/3rb4jj7s About High Wire High Wire Network, Inc., incorporated on Jan. 20, 2017, is a global provider of managed cybersecurity, managed networks, and tech-enabled professional services delivered exclusively through a channel sales model. The Company's Overwatch managed security platform-as-a-service offers organizations end-to-end protection for networks, data, endpoints, and users via multiyear recurring revenue contracts in this fast-growing technology segment. HWN has continuously operated under the High Wire Networks brand for 23 years. As of Dec. 31, 2024, the Company had $5,786,771 in total assets, $7,635,930 in total liabilities, and a total stockholders' deficit of $1,849,159. HRM DETROIT: Seeks Chapter 11 Bankruptcy in Michigan ---------------------------------------------------- On April 16, 2025, HRM Detroit Holding 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 not be available to unsecured creditors. About HRM Detroit Holding LLC HRM Detroit Holding LLC is engaged in the business of leasing real estate properties in the Detroit area. HRM Detroit Holding LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-43887) on April 16, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Mark A. Randon handles the case. The Debtor is represented by Ryan Heilman, Esq. at HEILMAN LAW PLLC. IDEAL HEALTH: Unsecureds Will Get 2% of Claims over 60 Months ------------------------------------------------------------- Ideal Health and Fitness Corp. d/b/a UFC Gym Folsom, Alameda & Placerville filed with the U.S. Bankruptcy Court for the Eastern District of California a Plan of Reorganization for Small Business dated March 19, 2025. The Debtor was incorporated in May 2021. The Debtor's insiders are Ben Ragsac, Jr., who is the Debtor's president, CEO, and a 50% shareholder and Michelle Flynn, who is the Debtor's CFO and the remaining 50% shareholder. At the time of the filing of the petition, the Debtor operated a gym and fitness center in Placerville, Alameda, and Folsom. The operation of all three locations is subject to UFC Gym's franchise agreement. As of March 2025, the Debtor decided to keep the Placerville gym and fitness center, but reject the lease agreements and vacate the premises for Folsom and Alameda. The final Plan payment is expected to be paid on July 2030 (estimated). This Plan of Reorganization proposes to pay creditors of the Debtor from business operation. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 2 cents on the dollar. This Plan also provides for the payment of administrative and priority claims. Class 3 consists of Non-priority unsecured creditors. The total amount of the allowed general unsecured claims is $1,165,136.81, which includes the undersecured and bifurcated portions of secured obligations. It does not include the pre-petition obligation of David Flynn, who is the spouse of Michelle Flynn, and considered an insider. No distribution is being made to Mr. Flynn through the Plan since the Debtor's Plan proposes less than 100% distribution to holders of unsecured claims in Class 3. Based on the liquidation analysis and the income valuation of the Debtor's assets, the holders of allowed general unsecured claims will be receiving an estimated 2% pro-rata distribution through the plan. The distribution to allowed general unsecured claims will be made monthly, with the first payment of $388.38 due on the effective date, followed by 59 consecutive payments, each in the amount of $388.38 to be paid pro-rata to each holder of allowed general unsecured claim. The Debtor intends to fund its plan from the continued operation on its business. A full-text copy of the Plan of Reorganization dated March 19, 2025 is available at https://urlcurt.com/u?l=qjf3wD from PacerMonitor.com at no charge. Counsel to the Debtor: Michael Jay Berger, Esq. Law Offices of Michael Jay Berger 9454 Wilshire Blvd., 6th Floor Beverly Hills, CA 90212 Telephone: (310) 271-6223 Facsimile: (310) 271-9805 Email: Michael.Berger@bankruptcypower.com About Ideal Health and Fitness Corp. Ideal Health and Fitness Corp. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-25682) on December 18, 2024, with up to $500,000 in assets and up to $1 million in liabilities. Ben Ragsac, Jr., president and chief executive officer of Ideal Health and Fitness, signed the petition. Judge Frederick E. Clement oversees the case. Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger, represents the Debtor as bankruptcy counsel. IGNITE OPTICS: Unsecureds to be Paid in Full over 3.5 Years ----------------------------------------------------------- Ignite Optics Communications, LLC filed with the U.S. Bankruptcy Court for the District of Colorado a Plan of Reorganization under Subchapter V dated March 19, 2025. The Debtor is a Colorado limited liability company providing services related to the installation of fiber and cable, including trenching, pulling, and replacement of fiber optic cable for construction companies and utility providers across the country. The Debtor is owned and operated by Jeramie Trotter. Mr. Trotter has significant experience in operating businesses that install fiber and overhead communication cables. The Debtor was originally formed in October 2022 by Hannah Dowty. At the time of its formation, she and her company, Sovengntry, Inc., owned all of the equity interests in the company, and were solely responsible for managing its operations. When Mr. Trotter's access to the Debtor's books and records was terminated, he determined that there was likely embezzlement or misappropriation of funds occurring which was leading to the accounting irregularities and the Debtor's inability to remain current on its expenses. Mr. Trotter and Ignite retained counsel and proceeded to file a lawsuit against Ms. Dowty, receiving a temporary restraining order barring her from the company. The lawsuit was ultimately successful in removing Ms. Dowty from the company entirely, resulting in Mr. Trotter becoming the 100% equity interest holder as of September 2024. While the lawsuit was pending, Mr. Trotter continued to work to attempt to return Ignite to profitability. He and his wife lent significant funds to the company in an effort to maintain operations, but additional funds were needed to resolve outstanding tax issues and issues with employees. Ignite was unable to qualify for an SBA or conventional loan at this time, as Ms. Dowty remained a partner and refused to response to capital calls. Because the additional funds remained necessary, however, it caused the Debtor to incur significant attorney fees at a time when the Debtor's operations were still attempting to recover from Ms. Dowty's mismanagement. The Debtor is exploring potential theories of recovery as to High Hill Capital, LLC ("HHC"). HHC was the provider of a Merchant Cash Advance loan on a pre-petition basis, and in the 90 days prior to filing, received over $160,000, while still asserting that they are owed over $100,000. The Debtor is reviewing to determine if the payments could be subject to recover under section 547 as a preferential transfer, or under section 548 as a constructively fraudulent conveyance. Classes 5 is comprised of the Allowed General Unsecured Claims holding unsecured claims against the Debtor. Unsecured Creditors are anticipated to be paid in full over approximately 3.5 years. Class 5 shall be treated follows: * Beginning on February 1, 2026 and continuing each month thereafter, the Debtor shall set aside 20% of the prior month's Net Profit into the Creditor Account. Each time three deposits have been made into the Creditor Account, the Debtor shall distribute all funds in the Creditor Account except $1001 on a pro rata basis to Class 5 Creditors until Class 5 Creditors are paid in full. * Based on the Debtor's projections, Class 5 Creditors are anticipated to be paid in full by December 2028. * In addition to the amounts set forth above, Class 5 shall receive fifty percent of the amounts recovered for claims arising under Chapter 5 after payment of attorney fees, cost of litigation, and cost of recovery. Class 6 is comprised of the pre-petition holders of interests in the Debtor. Class 6 is impaired by the Plan. On the Effective Date of the Plan, Class 6 interest holders shall retain all interests held on the Petition Date. The Debtor's Plan is feasible based upon the Debtor's prepared projections, which reflect a conservative prediction of the Debtor's operations during the term of the Plan. As evidenced by the projections, the Debtor is projecting significant revenue each year of the Plan. On the Effective Date of the Plan, Jeramie Trotter shall be appointed pursuant to Section 1142(b) of the Bankruptcy Code for the purpose of carrying out the terms of the Plan, and taking all actions deemed necessary or convenient to consummating the terms of the Plan. Mr. Trotter shall receive an annual salary in the amount of $120,000, subject to adjustment as the Debtor determines is reasonable and appropriate. Mrs. Trotter shall also perform controller services to the Debtor and shall receive compensation in the amount of approximately $31,000 per year, subject to adjustment as the Debtor determines is reasonable and appropriate. A full-text copy of the Plan of Reorganization dated March 19, 2025 is available at https://urlcurt.com/u?l=q4kDsz from PacerMonitor.com at no charge. About Ignite Optics Communications Ignite Optics Communications, LLC is a Colorado limited liability company providing services related to the installation of fiber and cable, including trenching, pulling, and replacement of fiber optic cable for construction companies and utility providers across the country. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 24-17506) on December 19, 2024, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Kimberley H. Tyson presides over the case. The Debtor is represented by: Keri L. Riley, Esq. Kutner Brinen Dickey Riley, P.C. Tel: 303-832-2400 Email: klr@kutnerlaw.com IROQUOIS-HUEY LLC: Claims to be Paid from Disposable Income ----------------------------------------------------------- Iroquois-Huey, LLC filed with the U.S. Bankruptcy Court for the Northern District of Oklahoma an Amended Plan of Reorganization for Small Business dated March 19, 2025. The Debtor is an LLC that owns and leases real property to third party tenants. The Debtor filed this chapter 11 bankruptcy was to stop a foreclosure action of property owned by Debtor at 309 N. Hickory Ave., Broken Arrow Ok and 1803 W. Detroit Broken Arrow, Ok. The foreclosure was filed in Tulsa County, Mabrey Bank v. Iroquois Huey, LLC Tulsa County Case No. CJ 2023-4088 (the "Foreclosure"). The Debtor proposes this plan to pay the filed claims. The Debtor must show that it will have enough cash over the life of the Plan to make the required plan payments and operate its business. From April 1, 2025 and going forward, Debtor will receive rental income of $8500/month. Debtor owns a duplex which generates $2,000 in monthly rental income and two commercial properties which generate $6,500 in rental income. This Plan of Reorganization proposes to pay creditors of the Debtor from future consulting income. Class 3 consists of Unsecured Claims. Class 3 creditor is only the Internal Revenue Service (POC 1). Class 1 nonpriority unsecured claims will be paid from funds remaining after all disbursements have been made to all other creditors provided for in this Plan (including administrative claims). The actual payback to Class 3 is 100%. This Class is impaired. Rick and Melissa Turner will retain in full equity interest in the Debtor. The Debtor projects a monthly Net Business Income of $6,890.78 per month. This monthly net income will be used to fund this plan. The Debtor's financial projections show that the Debtor will have projected disposable income for the 60-month period described in Section 1191(c)(2) of the Bankruptcy Code of approximately $413,446.80 ($6,890.78 x 60 months) and deducting an estimated amount of $10,000 for administrative claims and $351,112.33 for secured payments, leaving $62,334.47 available for unsecured creditors. The Plan is for 60 months. The first Plan payment is due on the first day of the month following the entry of an order confirming this plan and each month thereafter on the 1st of each month. The final Plan payment is 60 months thereafter. Upon confirmation, Debtor will be authorized to make payment the first business day following the date that is 14 days after the entry of the confirmation order. A full-text copy of the Plan of Reorganization dated March 19, 2025 is available at https://urlcurt.com/u?l=rrqmYM from PacerMonitor.com at no charge. Counsel to the Debtor: Ron D. Brown, Esq. Brown Law Firm, P.C. 1609 E. 4th Street Tulsa, OK 74120 Telephone: (918) 585-9500 Facsimile: (866) 552-4874 Email: ron@ronbrownlaw.com gavin@ronbrownlaw.com About Iroquois-Huey LLC Iroquois-Huey, LLC is an LLC that owns and leases real property to third party tenants. The Debtor filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Okla. Case No. 24-10801) on June 24, 2024, with up to $50,000 in assets and up to $500,000 in liabilities. Judge Terrence L Michael presides over the case. Ron D. Brown, Esq., at Brown Law Firm, P.C. represents the Debtor as bankruptcy counsel. JAB ENERGY: AMH Fails to Stay Ruling in Breach of Fiduciary Suit ---------------------------------------------------------------- In the case captioned as ALLISON MARINE HOLDINGS, LLC, Appellant, v. H. KENNETH LEFOLDT, JR., in his capacity as Liquidating Trustee of the JAB Energy Solutions II, LLC Liquidating Trust, Appellee, Case No. 23-cv-01085-CFC (D. Del.), Chief Judge Colm F. Connolly of the United States District Court for the District of Delaware denied the motion of Allison Marine Holdings, LLC seeking to stay the effect of the Court's Sept. 30, 2024 Opinion and Order pending appeal. In September 2021, JAB Energy Solutions II, L.L.C. filed for chapter 11 bankruptcy relief, and a plan of liquidation was confirmed in November 2022. In 2023, the Trustee filed an action in the Southern District of Texas, alleging breach of fiduciary duty claims against JAB's former manager, AMH, and certain officers of JAB. Because AMH contested the Trustee's standing to assert those claims, the Trustee filed a motion with the Bankruptcy Court seeking to interpret the plan to resolve those challenges to standing. The Trustee asked the Bankruptcy Court to answer two questions: (1) are the Trustee's claims against directors and officers limited to the portion of those claims that might be covered by insurance, or may the Trustee recover the entire claim?; and (2) is AMH an "Insured Person" under the Policy such that it may be sued by the Trustee? The Bankruptcy Court answered question (1) by agreeing with the Trustee that it could recover the entire claim, not only the portion covered by insurance. It answered question (2) by agreeing with AMH that AMH was not an "Insured Person" that could be sued by the Trustee. Both parties appealed the Bankruptcy Court's order to this Court. On Sept. 30, 2024, the Court issued an Order and accompanying Opinion resolving the parties' appeals. With respect to question (1), the Court affirmed the Bankruptcy Court's decision, holding that the causes of action were not limited to the amount of damages covered by an insurance policy. With respect to question (2), the Court reversed the Bankruptcy Court's decision, holding that the Trust 1s authorized to assert a claim against AMH. AMH has now appealed the Order to the Third Circuit Court of Appeals. Based on its construction of the plan of liquidation confirmed in the chapter 11 cases together with a certain management liability insurance policy, this Court determined that Kenneth Lefoldt, Jr., as trustee appointed under the plan, has standing to pursue certain claims asserted against AMH in a lawsuit pending in the Southern District of Texas. AMH argues that the effect of the Order should be stayed until the Third Circuit has reviewed the threshold question of whether the Trustee has standing to pursue those claims. Specifically, AMH asks this Court to stay the effect of its Order, and thereby communicate to the Southern District of Texas its view that it would be appropriate to await a final ruling from the Third Circuit. The Trustee opposes the Stay Motion on the basis that AMH has failed to establish irreparable harm in absence of a stay. According to the Court, the only harm AMH says it might face if a stay were not granted is that it would have to participate in discovery (and engage in unspecified "motion practice") in the litigation "as a party," as opposed to a non-party. Litigation expenses, however, do not constitute irreparable harm. The Court acknowledges that discovery can be burdensome. However, such a burden, while regrettable, does not constitute an irreparable injury. AMH has failed to establish that it will suffer irreparable harm in absence of a stay, the Court finds. A copy of the Court's decision is available at https://urlcurt.com/u?l=w49Bjw from PacerMonitor.com. About JAB Energy Solutions II JAB Energy Solutions II, LLC -- http://jabenergysolutions.com/-- is an EPIC (Engineering, Procurement, Installation & Commissioning) specialist providing comprehensive project management services for decommissioning, abandonment, construction and installation of offshore and onshore oil and gas facilities, platforms and pipelines. Based in Houston, with offices in Lake Charles, La., JAB Energy Solutions serves major and independent energy companies worldwide. JAB Energy Solutions filed a petition for Chapter 11 protection (Bankr. D. Del. Case No. 21-11226) on Sept. 7, 2021, listing as much as $50 million in both assets and liabilities. Judge Craig T. Goldblatt oversees the case. The Debtor tapped Pachulski Stang Ziehl & Jones, LLP as legal counsel and Traverse, LLC as restructuring advisor. Albert Altro, the founder of Traverse, serves as the Debtor's chief restructuring officer. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee tapped Lugenbuhl, Wheaton, Peck, Rankin & Hubbard and Joyce, LLC as legal counsel and Matthews, Cutrer and Lindsay, P.A. as financial advisor. JAGUAR HEALTH: Records $39.3 Million Net Loss in 2024 ----------------------------------------------------- Jaguar Health, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $39.3 million for the year ended Dec. 31, 2024, compared to a net loss of $41.9 million for the year ended Dec. 31, 2023. The total net revenue for the Company's prescription products, non-prescription products, and license revenue was approximately $11.7 million in the year 2024, representing an increase of approximately 20% versus the total net revenue in the year 2023, which totaled approximately $9.8 million. The total net revenue for the Company's prescription products, non-prescription products, and license revenue was approximately $3.5 million in the fourth quarter of 2024, representing an increase of 13% over the total net revenue in the third quarter of 2024, which totaled approximately $3.1 million, and an increase of approximately 53% over the total net revenue in the fourth quarter of 2023, which totaled approximately $2.3 million. Larkspur, California-based RBSM, LLP, the Company's auditor since 2022, issued a "going concern" qualification in its report dated Mar. 31, 2025, citing that the Company has an accumulated deficit, recurring losses, and expects continuing future losses. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company, since its inception, has incurred recurring operating losses and negative cash flows from operations and has an accumulated deficit of $346.5 million as of December 31, 2024. The Company expects to incur substantial losses and negative cash flows in future periods. Further, the Company's future operations, which include the satisfaction of current obligations, are dependent on the success of the Company's ongoing development and commercialization efforts, as well as securing additional financing and generating positive cash flows from operations. There is no assurance that the Company will have adequate cash balances to maintain its operations. Although the Company plans to finance its operations and cash flow needs through equity and/or debt financing, collaboration arrangements with other entities, license royalty agreements, as well as revenue from future product sales, the Company does not believe its current cash balances are sufficient to fund its operating plan through one year from the issuance of these consolidated financial statements. There can be no assurance that additional funding will be available to the Company on acceptable terms, or on a timely basis, if at all, or that the Company will generate sufficient cash from operations to adequately fund operating needs. If the Company is unable to obtain an adequate level of financing needed for the long-term development and commercialization of the products, the Company will need to curtail planned activities and reduce costs. Doing so will likely have an adverse effect on the ability to execute the Company's business plan. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/24p9k59n About Jaguar Health Jaguar Health, Inc. -- http://www.jaguar.health-- is a commercial-stage pharmaceuticals company focused on developing novel, plant-based, sustainably derived prescription medicines for people and animals with gastrointestinal ("GI") distress, including chronic, debilitating diarrhea. Jaguar Health's wholly owned subsidiary, Napo Pharmaceuticals, Inc., focuses on developing and commercializing proprietary plant-based human pharmaceuticals from plants harvested responsibly from rainforest areas. The Company's crofelemer drug product candidate is the subject of the OnTarget study, a pivotal Phase 3 clinical trial for prophylaxis of diarrhea in adult cancer patients receiving targeted therapy. As of Dec. 31, 2024, the Company had $53.4 million in total assets, $44.4 million in total liabilities, $2.5 million in commitments and contingencies and a total stockholders' equity of $6.5 million. JAMES JOSEPH: Court Denies Bid to Obtain $600K DIP Loan ------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, denied the motion by James Joseph Sanctified Spirits, LLC to use cash collateral and obtain post-petition financing. The Debtor had requested approval to enter into a $600,000 DIP financing arrangement with Oath & Evermore, LLC and use cash collateral. The Debtor said the financing is necessary to pay off a prior, contentious loan from BLOAK, LLC—a lender comprised of former board members—and to maintain business operations. About James Joseph Sanctified Spirits, LLC d/b/a Oak and Eden James Joseph Sanctified Spirits, LLC is in the business of whiskey manufacturing in Southlake, Texas. James Joseph sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 24-44468) on December 2, 2024. Amir Giryes, manager of James Joseph, signed the petition. As of November 27, 2024, James Joseph reported total assets of $3,942,406 and total liabilities of $3,575,009. Judge Mark X. Mullin oversees the case. The Debtor is represented by J. Robert Forshey, Esq., at Forshey Prostok, LLP. JAZ NCR: Claims to be Paid From Available Cash and Income --------------------------------------------------------- JAZ NCR Holdings LLC, a debtor affiliate of JAZ NCR LLC, filed with the U.S. Bankruptcy Court for the Western District of Pennsylvania a Plan of Reorganization for Small Business. The Debtor is a holding company maintaining 100% of the equity shares in JAZ. The Debtor has pledged it shares in JAZ to partially secure JAZ's obligation of approximately $40,000,000.00 of the total amount of a $200,000,000.00 secured loan extended by Taurus Mining Finance Fund No. 2, L.P. to JAZ. The Debtor does not have direct liability on the Taurus Debt other than the pledge. JAZ owns 10.575% of the shares in North Central Resources, LLC, a West Virginia limited liability company ("NCR"). NCR owns 100% of Century Mining, LLC operates the metallurgical coal mine known as the "Longview Mine" and commonly doing business and referred to as the Allegheny Metallurgical Mine. Due to the damage caused by the Longview fire, Century anticipates it will need to enter into certain contracts and transactions for certain equipment, supplies, and services (collectively, the "Longwall Restart Contracts"), investing a total of $75 to $90 million to construct a new longwall for purposes of mining metallurgical coal from a new point of access. Century projects that the new longwall will be ready by January 1, 2026, resulting in Century's ability to restart its metallurgical coal mining operations. Upon the confirmation of the Century Plan, ownership distributions, and potential recoveries from anticipated litigation will commence allowing the Debtor to pay its plan obligations. The Plan proposes to pay administrative and priority claims in full unless otherwise agreed. To the extent there are any general unsecured creditors, the Debtor will pay approximately 100% will be paid on account of general unsecured claims pursuant to the Plan. Class 4 shall consist of the Membership Interests of the Debtors (at times the "Existing Equity"). Existing Equity interests shall keep their equity and may make any equity contributions deemed appropriate. Upon recommencement of operations at Century Mining, any Distributions received shall be remitted to Taurus. The Debtor's financial projections demonstrate sufficient cash on hand to satisfy obligations due on the Effective Date of the Plan, including payment of the Allowed Administrative Claims, U.S. Trustee Fees, and cure amounts, in accordance with the Bankruptcy Code or as otherwise agreed. Pursuant to Section 1190(2) of the Bankruptcy Code, the Debtor shall submit all or such portion of future income as is necessary for the confirmation of the Plan and to satisfy the Debtor's obligations under Article 2 of the Plan. A full-text copy of the Plan of Reorganization dated March 19, 2025 is available at https://urlcurt.com/u?l=hp6Gwr from PacerMonitor.com at no charge. Attorneys for the Debtors: Kirk B. Burkley, Esq. Harry W. Greenfield, Esq. BERNSTEIN-BURKLEY, P.C. 601 Grant Street 9th Floor Pittsburgh, PA 15219 Tel: (412) 456-8100 E-mail: kburkley@bersteinlaw.com About JAZ NCR LLC JAZ NCR LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-22804) on Nov. 14, 2025, listing $1 million to $10 million in assets and $100 million to $500 million in liabilities. The petition was signed by D. Scott Kroh as manager. Judge Gregory L. Taddonio presides over the case. Kirk B. Burkley, Esq. at BERNSTEIN-BURKLEY, P.C. represents the Debtor as counsel. JEA2 LLC: Unsecured Creditors Will Get 100% of Claims in Plan ------------------------------------------------------------- JEA2, LLC filed with the U.S. Bankruptcy Court for the Eastern District of California an Amended Disclosure Statement in support of Plan of Reorganization. The Debtor is a California limited liability company. Jeffrey E. Arambel is the sole member in and manager of the Debtor. The Debtor holds title to approximately 154.59 acres of undeveloped real property bearing Stanislaus County, California, APNs 021-023-028, -029, -032, and 033 (collectively, the "Real Property"). At this time, the Real Property is within the limits of the City of Patterson, California. The Real Property is now used for agricultural purposes, but with its annexation into Patterson, it is now possible to use it for industrial purposes such as warehouse space upon specific local governmental approval. In this chapter 11 case, the Debtor has continued to operate its business and manage its assets. After the Effective Date of the Plan, the Reorganized Debtor will continue to do so, and Arambel will continue to act in as the Reorganized Debtor's managing member. While Arambel has not been compensated by the Debtor for management services rendered since the Debtor's inception, he may being to be compensated in market-rate amounts, but only if so doing will not impair the ability of the Debtor to perform under the Plan. The Debtor scheduled Summit's secured claim in the amount of $11,223,935.00, as a disputed claim due to uncertainty regarding application of payments received by SBN on account of a claim or claims filed by Summit in the bankruptcy cases of Filbin and Arambel, where Summit included in proofs of claim filed in those cases the debt owed by the Debtor. On February 23, 2025, Summit filed its Proof of Claim No. 2 in the Debtor's chapter 11 case, in the total amount of $11,592,744.93. Based on comparable sales of real properties in the geographical area of the Real Property, in its bankruptcy schedules filed in the Case, the Debtor valued the Real Property at approximately $42,000,000.00. Now that the Real Property is within the City of Patterson, and because economic conditions continue to favor the use of ag properties in the City for higher value industrial purposes such as for warehouse space, the Debtor believes that this value will be preserved for the term of the Plan. In a March 13, 2025 written appraisal, William F. Bambas, MAI, of Stockton, California, valued the Real Property at $40,500,000.00, a slightly lower amount than estimated by the Debtor. Claims of general unsecured creditors are classified in Class 3, and are to receive a distribution of 100% of their allowed claims, with interest, to be distributed through proceeds of sale or refinancing of the Debtor's real property. The allowed unsecured claims total $12,000. The filing of the Debtor's chapter 11 petition created a bankruptcy estate (the "Estate"), which will continue to exist until confirmation of the Plan. The Estate consists of all property of the Debtor as of the Petition Date, the primary such property being the Real Property. The rents collected by the Debtor, and proceeds of financing secured by the Real Property, if any, after the Petition Date and until confirmation of the Plan are also property of the Estate. The Plan provides that the Debtor will deposit post-confirmation rents and any proceeds of refinancing secured by the Real Property into a specific Creditor Account, and shall make disbursements to claim holders from that account. To fund disbursements to claim holders under the Plan, the Debtor is to continue to operate its business and to lease the Real Property to farming tenants following the Confirmation Date, and is to use net rental income to fund disbursements to claim holders under the Plan. The Debtor shall sell or refinance the Real Property, and net proceeds after payment of claims secured by the Real Property shall be used to pay in full all Allowed Claims secured by the Real Property and to fund distributions under the Plan, including to the holders of Class 4 Allowed Claims. The Plan in effect provides that the Debtor will continued to operate its business, collect rents from tenants, and pay ongoing expenses associated with the Real Property, and net proceeds from operations will be used to pay claims under the Plan, and also the Debtor will sell or refinance the Real Property so that all allowed claims, including those of creditors holding liens against the Real Property, in full, no later than three years after the Effective Date of the Plan. A full-text copy of the Amended Disclosure Statement dated March 19, 2025 is available at https://urlcurt.com/u?l=Z3DMvp from PacerMonitor.com at no charge. About JEA2 LLC JEA2, LLC, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. Case 24-90615) on Oct. 17, 2024. In the petition signed by Jeffrey Arambel, managing member, the Debtor disclosed up to $50 million in both assets and liabilities. Judge Ronald H. Sargis oversees the case. The Debtor is represented by: Anthony Asebedo Reynolds Law, LLP Tel: 916-679-5550 Email: anthony@reynoldslawllp.com KINA LANE: Seeks $30,000 DIP Loan From Insider ---------------------------------------------- Kina Lane Enterprises, LLC and Goldsby Enterprises, LLC asked the U.S. Bankruptcy Court for the District of Delaware for authority to obtain post-petition financing in the amount of $30,000 from Kina Lane, their sole member and insider. The DIP financing is proposed as a secured, non-priming credit facility, which will be secured by liens on all of the Debtors' assets but will not take priority over existing secured creditors. The loan is intended to provide the Debtors with the liquidity necessary to fund business operations, pay professionals involved in the bankruptcy, and support either a reorganization or a sale of assets in accordance with the budget. The DIP facility is due and payable on the earlier of (i) six months after the closing date; (ii) full repayment of the loan; and (iii) conversion of the case to Chapter 7. The Debtors must pay up to $5,000 in reasonable fees and costs associated with arranging and closing the loan. These fees will be deducted from the gross loan amount. The lender is required to fund the full loan amount within 72 hours of court approval, and the facility remains available on demand until the maturity date. There is a "carve-out" for professional fees and administrative expenses, allowing up to $30,000 plus any funds already held by Debtors' counsel to be used for such expenses even in the event of dismissal or conversion of the case. The DIP lender will receive a perfected lien on all assets of the Debtors. However, this lien is non-priming —- it does not override pre-existing secured creditors. The DIP lender must fund within 72 hours of court approval, and the funds remain available on demand until the maturity date. About Kina Lane Enterprises Kina Lane Enterprises, LLC filed Chapter 11 petition (Bankr. D. Del. Case No. 25-10665) on April 7, 2025, listing up to $1 million in assets and up to $50,000 in liabilities. Kina Lane, sole member of Kina Lane Enterprises, signed the petition. Judge Craig T. Goldblatt oversees the case. Mark Billion, Esq., at Billion Law, represents the Debtor as bankruptcy counsel. KINGFISH HOLDING: Schedules Annual Shareholder Meeting for May 8 ---------------------------------------------------------------- Kingfish Holding Corp. announced that its 2025 Annual Meeting of Stockholders will be held on May 8 at 6:00 p.m. local time in Bradenton, Florida, according to a Form 8-K filing with the Securities and Exchange Commission. Shareholders of record as of April 8 are set to vote on the election of seven directors and the ratification of Astra Audit & Advisory LLC as the Company's independent auditor for fiscal 2025. The Company will not solicit proxies, requiring shareholders to either attend in person or assign a proxy to cast their votes. About Kingfish Holding Kingfish Holding Corporation, based in Bradenton, Florida, specializes in acquiring and reselling scrap metals, both processed and unprocessed, from various sources including manufacturing and industrial plants, refineries, demolition businesses, and retail individuals. The Company focuses on ferrous and non-ferrous metals, such as copper, aluminum, stainless steel, aluminum, bronze, lead, zinc, nickel, but excludes precious metals like gold and silver. Following its merger with Renovo Resource Solutions on April 19, 2024, Kingfish's primary operations now center on processing and recycling metals, particularly through its specialized equipment for granulating insulated copper wire. In its report dated Jan. 13, 2025, the Company's auditor, Astra Audit & Advisory, LLC, issued a "going concern" qualification citing that the Company has negative working capital and has sustained operating losses since inception. These factors, along with the need for additional financing, raise substantial doubt about the Company's ability to continue as a going concern. The Company had a net loss of $21,752 for the year ended Sept. 30, 2024 compared to net income of $270,155 for the year ended Sept. 30, 2023. As of Sept. 30, 2024, the Company had $2.51 million in total assets, $2.62 million in total liabilities, and a total stockholders' deficit of $111,635. KOZUBA & SONS: Gets Interim OK to Use Cash Collateral Until May 15 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division authorized Kozuba & Sons Distillery, Inc. to use cash collateral, on an interim basis, in accordance with its projected budget. Specifically, the company was authorized to use cash collateral to pay: (a) amounts expressly authorized by the court, including any required monthly payments to the Subchapter V trustee; (b) the current and necessary expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and (c) additional amounts as may be expressly approved in writing by its lenders. Each creditor with a security interest in cash collateral will have a perfected post-petition lien on cash collateral to the same extent and with the same validity and priority as its pre-bankruptcy lien. Kozuba & Sons will keep its property insured in accordance with the obligations under applicable loan and security documents. The next hearing is scheduled for May 15. About Kozuba & Sons Distillery Kozuba & Sons Distillery, Inc., a company in Pinellas Park, Fla., filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01003) on February 28, 2024, with $1 million to $10 million in both assets and liabilities. Jakub Kozuba, vice president of Kozuba & Sons, signed the petition. Judge Roberta A. Colton presides over 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 LA TERMINALS: Consent Decree Entered in Los Angeles, et al. Suit ---------------------------------------------------------------- The Honorable Michael W. Fitzgerald of the United States District Court for the Central District of California issued a consent decree in the case captioned as L.A. TERMINALS, INC., a California corporation, Plaintiff, vs. CITY OF LOS ANGELES, a Municipal corporation, and OCCIDENTAL CHEMICAL CORPORATION, a New York corporation and UNION PACIFIC RAILROAD COMPANY, a Delaware Corporation, Defendant, Case No. 2:18-cv-06754-MWF-PVC (C.D. Cal.). Plaintiff L.A. Terminals Inc. filed its complaint in this action on August 6, 2018, seeking to recover "response costs" and seeking declaratory relief under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Sec. 9601, et seq. ("CERCLA") against Defendants City of Los Angeles and Occidental Chemical Corporation. Plaintiff filed its First Amended Complaint on March 20, 2019, adding Union Pacific Railroad Company as a defendant. The City, Occidental and Union Pacific are collectively referred to as the "Defendants." Multiple counter-claims, cross-claims and third-party complaints were then filed by the Defendants, seeking contribution and declaratory relief under CERCLA, as well as legal and equitable relief under California law, including for breach of contract, express contractual indemnity, equitable indemnity and contribution and declaratory relief under California law, against the Plaintiff, each other and against Third-Party Defendants Phillips 66 Company, Union Oil Company of California, Ash-Cross-Evans Corporation ("ACE" - appearing through Intervenor Wausau General Insurance Company - "Wausau"), Olympic Chemical Corporation, and Soco West, Inc. With the exception of Soco, the Third-Party Defendants in turn filed various counter-claims and cross-claims also seeking contribution and declaratory relief under CERCLA and equitable indemnity and contribution under California law. Prior to Plaintiff filing its Complaint in this Action, the City filed a lawsuit in Los Angeles Superior Court, entitled, City of Los Angeles v. L.A. Terminals, Inc. et. al, LASC Case No. NC061591, initially only against the LAT, but with the City thereafter amending its complaint several times and ultimately naming all of the parties that have been named in this Action. In the LA Superior Court Action, the City seeks property damage and the recovery of past and/or future investigation and remediation costs, as well as declaratory and injunctive relief, all under California law, including under the California Hazardous Substances Account Act ("HSAA" – Cal. Health & Safety Code Sec. 25300 et. seq., recodified at Cal. Health & Safety Code Sec. 78000 et. seq), and pursuant to California contract laws and the common laws of nuisance and trespass. Multiple cross-claims and counter-claims were then filed by the Parties in the LA Superior Court Action against each other, all of which remain pending, except that, as to Wausau/ACE and Olympic, the State Court approved Wausau/ACE and Olympic's settlements as being in good faith, thus barring any equitable indemnity and/or contribution claims against such parties. The LA Superior Court Action is currently stayed. On April 26, 2023, Plaintiff and Soco filed a Notice of Suggestion of Bankruptcy For Brilliant National Services, Inc., L.A. Terminals, Inc., Soco West, Inc., and Whittaker, Clark & Daniels, Inc. and Notice of Automatic Stay of Proceedings, advising this Court of the filing of petitions for relief under chapter 11 of title 11 of the United States Code, 11 U.S.C. Secs. 101–1532, in the United States Bankruptcy Court for the District of New Jersey. In addition to entering into this Consent Decree, Plaintiff and Soco West have entered into a separate settlement agreement with the Excluded Parties, i.e., the City, Phillips 66 and Union Pacific. The effective date of the SS Agreement is the same as the Effective Date of this Consent Decree. The SS Agreement provides, in sum, that, as of the Effective Date, the Excluded Parties are waiving, releasing and forever discharging the Plaintiff and Soco West, from and against any and all claims they have or may have in the future that concern or in any way relate to the Site, the HVOC Contamination and/or the TPH Contamination. The SS Agreement includes the same Litigation Release extending from Plaintiff and Soco West to the Excluded Parties. In sum, the SS Agreement will resolve all existing and future Claims by and between the Excluded Parties, on the one hand, and Plaintiff and Soco West on the other, both in this Action and in the LA Superior Court Action, but does not affect any of the Excluded Parties' Claims against each other, nor against Occidental and Union Oil. Similarly, the SS Agreement has no effect on any of Occidental's or Union Oil's Claims against any of the Excluded Parties. The Parties have entered into a Stipulation in this Action, wherein all Parties have stipulated to, among other terms: (1) this Court's approval and entry of this Consent Decree; (2) the Bankruptcy Court's approval of the settlement terms that concern LAT and Soco, as reflected in this Consent Decree and in the SS Agreement; and (3) the Bankruptcy Court's issuance of an order lifting the automatic stay as to LAT and Soco, for the limited purpose of enabling this Court to review and, if appropriate, approve this Consent Decree and to retain jurisdiction to interpret and enforce its terms. On Feb. 15, 2023, the Court approved a motion for good faith determination filed by Wausau, determining that a settlement entered into by and between Wausau on behalf of ACE, on the one hand, and the City, Occidental and Union Pacific, on the other hand, was in good faith, and resolving all claims brought by or against Wausau/ACE. On March 8, 2023, this Court issued an Order, pursuant to a stipulation submitted by all Parties (except Wausau/ACE), determining that a settlement entered into by and between Olympic, on the one hand, and the City, Occidental and Union Pacific, on the other hand, was in good faith, and resolving all claims brought by or against Olympic. With the Court's approval of the Wausau/ACE and Olympic settlements and with the Court's issuance of this Consent Decree, all claims in this Action will have either been resolved or dismissed, and thus no claims in this Action will remain. Entry of this Consent Decree will therefore result in a resolution and/or dismissal of all pending claims in the Action. All claims in this Action brought by or against Plaintiff LAT and Soco will be fully and finally resolved by entry of this Consent Decree by this Court. Further, upon entry of this Consent Decree, all other claims pending in this Action not involving Plaintiff LAT or Soco, will, by entry of this Consent Decree, be dismissed without prejudice. Finally, per the Parties' Stipulation and pursuant to the terms of this Consent Decree and the SS Agreement, upon entry of this Consent Decree by this Court, all claims pending in the LA Superior Court Action brought by or against Plaintiff LAT and/or Soco will separately be dismissed with prejudice by the Parties, through the filing of timely Requests for Dismissals in the LA Superior Court Action. All Parties other than Plaintiff LAT and Soco, expressly reserve their rights to prosecute their Claims against each other in the LA Superior Court Action. This Consent Decree shall constitute the final judgment in this Action, and the Court finds there is no just reason for delay and therefore enters this Consent Decree as a final judgment, pursuant to Federal Rules of Civil Procedure 54 and 58. A copy of the Court's decision is available at https://urlcurt.com/u?l=BIrrDI from PacerMonitor.com. About Whittaker, Clark & Daniels Whittaker, Clark & Daniels, Inc. and affiliates, Brilliant National Services Inc., Soco West Inc. and L.A. Terminals Inc., were engaged in nonmetallic mineral mining and quarrying. The Debtors sought Chapter 11 protection (Bankr. D.N.J. Lead Case No. 23-13575) on April 26, 2023. The Debtors estimated $100 million to $500 million in assets against $1 billion to $10 billion in liabilities as of the bankruptcy filing. The Hon. Michael B. Kaplan is the case judge. The Debtors tapped Kirkland & Ellis LLP as general bankruptcy counsel; Cole Schotz P.C. as co-bankruptcy counsel; and M3 Partners LLC as financial advisor. Stretto, Inc. is the claims agent. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent talc claimants in the Debtors' Chapter 11 cases. The talc committee is represented by Cooley, LLP. The Hon. Shelley Chapman was appointed as the future claimants' representative (FCR) in the Chapter 11 cases. Willkie Farr & Gallagher, LLP is the FCR's counsel. LANDMARK HOLDINGS: Court Extends Cash Collateral Access to May 18 ----------------------------------------------------------------- Landmark Holdings of Florida, LLC and its affiliates received another extension from the U.S. Bankruptcy Court for the Middle District of Florida to use cash collateral. The second interim order extended the companies' authority to use cash collateral from April 11 to May 18 to pay the expenses set forth in their budget, with a 10% variance allowed. The five-week budget projects total disbursements of $9,697. Amerant Bank N.A., a secured creditor, was granted a replacement lien on post-petition cash collateral as protection for the use of its collateral. In case its interest in the cash collateral is diminished, Amerant Bank will be granted a superpriority claim. The companies' authority to use cash collateral terminates upon occurrence of certain events, including consummation of a confirmed Chapter 11 plan; 60 days after entry of the second interim order; failure to deliver required documents; failure to comply with the budget; unauthorized use of cash collateral; making of unauthorized payments; dismissal or conversion of the companies' Chapter 11 cases; appointment of a trustee or examiner; material misrepresentation; and failure to perform obligations under the Order. The next hearing is set for May 18. Amerant Bank is represented by: Brian P. Yates, Esq. Garbett, Allen, Roza & Yates, P.A. Brickell City Tower 80 S.W. Eighth Street, Suite 3100 Miami, FL 33130 Telephone: (305) 579-0012 Email: byates@garlawfirm.com About Landmark Holdings of Florida Landmark Holdings of Florida, LLC and seven affiliates filed Chapter 11 petitions (Bankr. M.D. Fla. Lead Case No. 25-00397) on March 9, 2025. The petitions were signed by Landmark CEO Bryan Day. At the time of the filing, Landmark reported between $50 million and $100 million in assets and between $50 million and $100 million in liabilities. Judge Caryl E. Delano oversees the cases. The Debtors are represented by: Jamie Zysk Isani, Esq. Hunton Andrews Kurth, LLP Tel: 305-536-2724 Email: jisani@hunton.com LAZARUS INDUSTRIES: Seeks Chapter 11 Bankruptcy in New York ----------------------------------------------------------- On April 16, 2025, Lazarus Industries Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of New York. According to court filing, the Debtor reports $7,566,027 in debt owed to 50 and 99 creditors. The petition states funds will not be available to unsecured creditors. About Lazarus Industries Inc. Lazarus Industries Inc. 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. Lazarus Industries Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. ) on April 2, 2025. In its petition, the Debtor reports total assets of $882,200 and total liabilities of $7,566,027. Honorable Bankruptcy Judge Carl L. Bucki handles the case. The Debtor is represented by Frederick J. Gawronski, Esq. at COLLIGAN LAW, LLP. LEVY VENTURES: NewRez Seeks to Prohibit Cash Collateral Access -------------------------------------------------------------- NewRez, LLC, on behalf of various creditors, asked the U.S. Bankruptcy Court for the Southern District of New York, White Plains Division, to prohibit Levy Ventures, LLC from using cash collateral. The cash collateral consists of rental income generated by over 30 Baltimore properties, without court authorization or creditor consent. NewRez, doing business as Shellpoint, asserted that since filing for Chapter 11 bankruptcy on March 5, 2025, the Debtor has failed to file required schedules, statements, a Chapter 11 plan, or a motion to use cash collateral—steps necessary to comply with bankruptcy law. As a result, the company argued the Debtor's continued use of any rental income constitutes an unauthorized use of cash collateral, potentially causing harm to creditors who remain unpaid while still covering taxes and insurance for the properties. In response, NewRez sought several remedies from the court, including requests that the Debtor be barred from using cash collateral; that an immediate accounting of all post-petition rental income be provided; that adequate protection payments commence; that copies of all leases and a rent roll be submitted; and that a detailed budget for each property be filed, showing six months of past and projected income and expenses. Additionally, NewRez sought replacement liens on post-petition rents and related assets and requested that all rental income be deposited into a segregated debtor-in-possession account. These actions aim to protect creditor interests, ensure compliance with bankruptcy regulations, and promote financial transparency throughout the proceedings. A hearing on the matter is set for May 13. A copy of the motion is available at https://urlcurt.com/u?l=WIWWIg from PacerMonitor.com. About Levy Ventures LLC Levy Ventures LLC is engaged in real estate-related activities. Levy Ventures sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22182) on March 5, 2025. In its petition, the Debtor reported estimated assets and liabilities between $10 million and $50 million. Judge Sean H. Lane handles the case. The Debtor is represented by Kevin Nash, Esq., at Goldberg Weprin Finkel Goldstein, LLP. LODGING ENT: Objections to American Hotel's Claims Sustained ------------------------------------------------------------ Chief Judge Dale L. Somers of the United States Bankruptcy Court for the District of Kansas sustained Lodging Enterprises, LLC's objections to the proofs of claim filed by American Hotel Income Properties REIT, Inc. and AHIP Cargo Enterprises LLC. American Hotel sold to VCM Lodging Enterprises, LP the membership interests in both Debtor and a related limited liability company. In effect, the Seller sold to the Buyer the equity interests of the Debtor, and now the Buyer controls and is the sole owner of Debtor, who itself owns a portfolio of hotels and related hard assets. American Hotel filed proofs of claim in Debtor's case, claiming Debtor is holding $7 million from a holdback of the purchase price from the $215.5 million sale and American Hotel is entitled to that money. Debtor objects to the proofs of claim. The question is not whether American Hotel was to receive, or is entitled to receive, the $7 million upon certain conditions being met, but rather, does American Hotel have a claim against Debtor for that $7 million. After trial on the matter, the Court concludes American Hotel does not have a claim for recovery of the holdback from Debtor. Debtor was not a party to the sale agreement at issue that established the holdback, and there is no legal basis for American Hotel's claim to that holdback from Debtor, the Court finds. The Court therefore sustains Debtor's objections to the proofs of claim at issue. A copy of the Court's decision is available at https://urlcurt.com/u?l=dqh0X6 from PacerMonitor.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. LOGIX COMMUNICATIONS: Davis Polk Advise Lenders on Recapitalization ------------------------------------------------------------------- Davis Polk & Wardwell LLP advised an ad hoc group of first-lien term loan lenders in connection with a recapitalization and maturity extension involving Logix Communications, LP (d/b/a Logix Fiber Networks). The transactions included the partial repayment and long-term maturity extension of the existing first-lien term loan, a new $45 million investment from the second-lien lenders and the exchange of the existing second-lien term loan for a combination of a new second-lien loan and new preferred equity. Logix is a leading fiber-based network infrastructure provider in Texas, offering high-performance connectivity products, wavelength services and internet access to businesses, carriers and data center operators. The Davis Polk restructuring team included partner Eli J. Vonnegut and associates David Kratzer, Kayleigh Yerdon and Tony Sun. The restructuring finance team included counsel Jon Finelli and associates Mariya Dekhtyar and Trevor D. Jones. The tax team included partner Patrick E. Sigmon, counsel Tracy L. Matlock and associates Omar Hersi and Alanna Phillips. Associate Justin Alexander Kasprisin provided executive compensation advice. All members of the Davis Polk team are based in the New York office. MID VALLEY NUT: Seeks to Use $7,500 in Cash Collateral ------------------------------------------------------ Mid Valley Nut Company Inc. asked the U.S. Bankruptcy Court for the Eastern District of California, Modesto Division, for authority to use cash collateral. Specifically, the Debtor intends to use $7,500 in cash collateral to pay a post-petition retainer to accountant David E. Harris of Bean Hunt Harris & Company. This payment is intended to cover the preparation of the Debtor’s federal and state tax returns for the fiscal year ending June 30, 2024. The funds in question, approximately $23,000, were generated from services like custom cracking and fumigation—not from the sale of walnuts—and are held in a segregated debtor-in-possession account. These funds are considered cash collateral subject to the liens of Yosemite Land Bank and the U.S. Small Business Administration. The Debtor proposed granting Yosemite and the SBA replacement liens of the same priority, extent, and validity as their prepetition liens, covering post-petition assets and proceeds, except claims under Chapter 5 of the Bankruptcy Code. These liens will be deemed perfected upon court approval, though the secured creditors may file documents to confirm perfection if desired. The use of the $7,500 is limited in scope and duration—the authority to use the funds will expire once the payment is made and cleared. A court hearing is set for May 1. About Mid Valley Nut Company Inc. Creditors Karm Bains, JS Johal & Sons, Inc., Suneel Sharma filed involuntary Chapter 7 petition against Mid Valley Nut Company Inc. (Bankr. E.D. Calif. Case No. 24-90741) on November 30, 2024. The case was converted to one under Chapter 11 on February 18, 2025. Judge Ronald H. Sargis oversees the case. The petitioning creditors are represented by Ameet O'Rattan Sharma, Esq. at Omni Firms. Mid Valley Nut Company is represented by Binder Malter Harris & Rome-Banks, LLP. MP OCTOPUS: Gets Extension to Access Cash Collateral ---------------------------------------------------- MP Octopus Pizza, LLC and its affiliates received third interim approval from the U.S. Bankruptcy Court for the Middle District of Florida to continue to use the cash collateral of secured creditors. The third interim order authorized the companies to use cash collateral to pay amounts expressly authorized by the court, including payments of the U.S trustee's quarterly fees; expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and additional amounts approved by ConnectOne Bank. This authorization will continue until further order of the court. As protection, ConnectOne Bank and other creditors with a security interest in cash collateral will have a perfected post-petition liens on the cash collateral to the same extent and with the same validity and priority as their pre-bankruptcy liens. In addition, the companies were ordered to keep their property insured in accordance with their obligations under the loan and security documents with secured creditors. The next hearing is scheduled for June 5. ConnectOne Bank is represented by: Matthew A. Barish, Esq. One Boca Place 2255 Glades Road, Suite 300E Boca Raton, FL 33431 Phone: (646) 563-8958 mbarish@coleschotz.com vfink@coleschotz.com -- and -- James T. Kim, Esq. Court Plaza North 25 Main Street Hackensack, NJ 07601 Phone: (201) 525-6210 jkim@coleschotz.com vfink@coleschotz.com About MP Octopus Pizza LLC MP Octopus Pizza LLC, doing business as Marco's Pizza, filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 24-06739) on November 15, 2024, with $50,001 to $100,000 in assets and $500,001 to $1 million in liabilities. Terry Burkholder, manager of MP Octopus Pizza, 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 MYSTICAL STARS: Claims to be Paid from Business Revenue ------------------------------------------------------- Mystical Stars, LLC, f/k/a ARYA International Inc., a nd Rupal Patel filed with the U.S. Bankruptcy Court for the District of New Jersey a Jointly Administered Disclosure Statement describing Plan of Reorganization dated March 19, 2025. Mystical is a dance academy that teaches Indian dance styles throughout the country. Approximately twenty-five years ago in or around 1999, Ms. Patel founded ARYA International Inc., the predecessor to Mystical. Upon Mystical's counsel's review of the business records of Arya before filing the bankruptcy, counsel discovered that Arya's corporate charter/status had been revoked for its failure to file its annual report for two consecutive years. As a result, Ms. Patel formed Mystical. Mystical maintains the same organization and business operation infrastructure in every way as Arya. Mystical operates two full-time studios located at: (i) 1571 US-46, Parsippany, New Jersey; and (ii) Amwell Mall, 450 Amwell Rd., Suite D, Hillsborough, NJ 08844. It also "rents" over 65 additional locations at numerous locations on a short time basis throughout several states. Class 21 consists of General Unsecured Claims. The allowed unsecured claims total $17,963,793. The Debtors propose to pay Class 21 Creditors (General Unsecured Creditors) quarterly dividends over sixty months – 20 quarterly payments. The Debtors will make total payments to general unsecured creditors of approximately $637,310.88 in their Plan. The quarterly payment shall be a pro rata distribution. Class 21 payments shall commence with the quarter starting Quarter 3 in 2025. Class 21 creditors shall additionally receive a distribution of 50% of the Mystical's annual net Disposable Income as that term is defined in Section 1191(d) of the Bankruptcy Code. This distribution takes into account that all administrative, priority, and allowed secured claims have been paid in full on or before the Effective Date or as otherwise agreed by the creditors. At the end of each year that the Plan provides for distributions, once Mystical has determined its annual net Disposable Income, an additional residual distribution may be made to general unsecured creditors to ensure that at least 50% of Mystical's annual Disposable Income is allocated to general unsecured creditors yearly. Specifically, Mystical will determine its total annual Disposable Income for the preceding year by February 28 of the following calendar year. Moreover, Mystical will also submit a report to the Committee detailing its annual net Disposable Income and submitting an additional residual distribution, if any, by March 31 of the same year it completes its net Disposable Income calculation. For example, for the year 2025, the Reorganized Debtor will determine its annual net Disposable Income by February 28, 2026 and will submit a report to the Committee regarding net Disposable Income and make an additional distribution to general unsecured creditors, if any, by March 31, 2026. Ms. Patel will be retaining her Member interest in Mystical. Except for Allowed Professional Claims, the Debtors will be able to make payments on the Effective Date of the Plan and for all payments thereafter. The Debtors will fund the Plan through Mystical's business. Mystical's 2025 projected total revenue is $2,529,578.80, with a projected net income of $86,705.97. Mystical's 2026 projected total revenue is $3,035,494.56, with a projected net income of $91,064.89. Mystical's 2027 projected total revenue is $3,278,334.12, with a projected net income of $110,062.08. Mystical's 2028 projected total revenue is $3,540,600.85, with a projected net income of $130,579.04. Finally, Mystical's 2029 projected total revenue is $3,833,848.92, with projected net income of $162,137.37. Thus, the Debtors submit, based on Mystical's projected revenues through 2029, that the Plan is feasible and they will have enough monies to fund the Plan. A full-text copy of the Disclosure Statement dated March 19, 2025 is available at https://urlcurt.com/u?l=3sbyZ9 from PacerMonitor.com at no charge. Mystical Stars, LLC is represented by: Anthony Sodono, III, Esq. Sari B. Placona, Esq. McManimon Scotland & Baumann, LLC 75 Livingston Avenue, Suite 201 Roseland, NJ 07068 Tel: (973) 622-1800 Email: asodono@msbnj.com About Mystical Stars Mystical Stars, LLC, f/k/a Arya International, Inc. is a dance academy that teaches Indian dance styles throughout the country. The Debtor filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 24-18290) on August 21, 2024, listing $1,000,001 to $10 million in assets and $10,000,001 to $50 million in liabilities. Anthony Sodono, III, Esq, at Mcmanimon, Scotland & Baumann, LLC represents the Debtor as counsel. NB STRANDS: Files Amendment to Disclosure Statement --------------------------------------------------- NB Strands, LLC submitted a Second Amended Disclosure Statement describing First Amended Chapter 11 Plan dated March 19, 2025. The Debtor has been pursuing a refinancing of its Property since spring 2024. In December 2024, Debtor was conditionally approved for a $12,000,000 commercial debt facility from Bedrock Capital Group. However, Bedrock decided not to move forward with the financing. Other lenders have expressed interest in loaning Debtor approximately $7,000,000. On February 13, 2025, Debtor's manager executed a "Letter of Intent for Refinance of Construction Loan of 1st Trust Deed" in which Dove Mortgage Corporation confirmed its intent to facilitate a loan of $8,200,000 to Debtor secured by a first-priority lien against Debtor’s Property. It is anticipated this loan will carry an interest rate of 12% per annum and will mature in December 2026. Debtor is in the process of pursuing bankruptcy court approval of this loan. The Debtor's general contractor, Genova Construction and Development, has also expressed an interest in providing a $6,000,000 facility to complete construction of the Project. The expressed interest of several lenders detailed here, the existing equity in the Property, and current market conditions cause Debtor to believe it is likely it will be able to refinance the Property prior to the Financing Deadline. However, Debtor has not been able to obtain financing during the past year, and real estate market conditions and interest rates can change quickly. There is therefore a risk that Debtor will not able to refinance the Property by the Financing Deadline, creditors would then be forced to rely on an "As Is" Sale within 12 months from the Effective Date to pay their claims. The Debtor filed a Second Amended Sch. E/F on January 30, 2025 revising Genova's claim to $0. The Debtor has subsequently received information that Genova is asserting a claim against Debtor arising from money Genova claims it advanced to cover construction expenses and avoid liens being asserted against the Property. Debtor is investigating the exact amount of Genova's claim. The Second Amended Disclosure Statement does not alter the proposed treatment for unsecured creditors and the equity holder: * Class 3 consists of general unsecured claims (claims that are not entitled to priority payment under the Bankruptcy Code and that are not secured by the Property). Class 3 is divided into two subclasses: Class 3A and Class 3B. Class 3A consists of general unsecured claims that do not qualify for treatment as Class 3B claims. Class 3B consists of non-priority, general unsecured claims allowed in an amount equal to or less than $2,000. Under the Plan, general unsecured claims will be paid in full with interest. Class 3A claims will be paid from either an As Is Sale of the Property or from a sale after Debtor's Project is complete. Class 3B claims are be paid on the Effective Date first from the Post-Confirmation Operating Facility. * Class 5 consists of Interest Holders. Interests means ownership interests in Debtor, in this case, Versity's membership interest. This class remains unchanged under the plan unless otherwise stated in the Plan or Disclosure Statement. Payments due on the Effective Date will be funded from the Post Confirmation Operating Facility. Future payments will come from either a third-party refinancing or proceeds from the sale of the Property. Debtor will act as the Disbursing Agent under the Plan, making all required distributions, which must occur within 15 days of the due date provided for in the Plan. A full-text copy of the Second Amended Disclosure Statement dated March 19, 2025 is available at https://urlcurt.com/u?l=VCGAZA from PacerMonitor.com at no charge. Attorneys for the Debtor: Paul J. Leeds, Esq. Meredith King, Esq. Franklin Soto Leeds, LLP 444 West C Street, Suite 300 San Diego, CA 92101 Telephone: (619) 872-2520 Facsimile: (619) 566-0221 Email: pleeds@fsl.law mking@fsl.law About NB Strands NB Strands, LLC is a Delaware limited liability company formed to develop a Property located in the exclusive, ocean-view coastal community known as The Strand. The Debtor filed Chapter 11 petition (Bankr. C.D. Cal. Case No. 24-12640) on October 16, 2024, with $10 million to $50 million in both assets and liabilities. Judge Scott C. Clarkson oversees the case. Franklin Soto Leeds, LLP is the Debtor's legal counsel. NEW BOOST: S&P Places 'BB' ICR on CreditWatch Positive ------------------------------------------------------ S&P Global Ratings placed its ratings on New Boost Holdco LLC (dba Worldpay) on CreditWatch with positive implications, including its 'BB' issuer credit rating on the company and our 'BB' issue-level ratings on its senior secured debt. S&P expects all its debt to be repaid or assumed by GPN at close. Global Payments Inc. (GPN) entered into a definitive agreement to acquire New Boost Holdco LLC (dba Worldpay) from GTCR and Fidelity National Information Services Inc. (FIS) for an enterprise value of about $24.25 billion (including tax assets). The companies expect the transaction to close in the first half of 2026, pending regulatory approvals and other customary closing conditions. S&P said, "The positive CreditWatch placement primarily reflects our belief that the combined company with GPN will maintain lower run-rate leverage and thus a more favorable credit profile than Worldpay as a stand-alone company. Worldpay will no longer be controlled by a financial sponsor, and we expect its new owner GPN will continue to operate with a comparatively more conservative financial policy. We also expect the combined entity will have larger scale, better diversification, and its small to midsize business (SMB) offerings will benefit from in-house point-of-sale (POS) hardware instead of relying on partners. At transaction close, we expect GPN will repay or assume all Worldpay’s debt." "We expect to resolve the CreditWatch placement when the transaction closes. At that time, we expect to discontinue our ratings on Worldpay and all its repaid debt. If any existing Worldpay debt remains outstanding at GPN after close, we will reevaluate those ratings at that time. If the transaction is not completed due to regulatory or other reasons, we will likely affirm our 'BB' rating with a stable outlook on Worldpay, the same as before the acquisition." NEW YORK INN: Summary Judgment in Favor of Insurer Affirmed ----------------------------------------------------------- In the appealed case styled as New York Inn, Incorporated; Viva Inn, Incorporated, Appellants, versus Associated Industries Insurance Company, Incorporated, Appellee, No. 24-10338 (5th Cir.), Judges Jennifer Walker Elrod, Edith Brown Clement and Irma Carrillo Ramirez of the United States Court of Appeals for the Fifth Circuit affirmed the judgment of the United States District Court for the Northern District of Texas granting Associated Industries Insurance Co.'s motion for summary judgment. Associated Industries Insurance Co. issued an insurance policy to Viva Inn, Inc. for the Viva Inn Motel in Arlington, Texas. Following winter storm Uri in February 2021, Viva's adjuster filed a claim for water damage to the Motel from a burst pipe. Between March 2021 and June 2022, Associated paid Viva $271,538.65 for damage to the Motel. New York Inn, Inc., a corporate affiliate of Viva's, filed an adversary proceeding in bankruptcy court against Associated, which Viva later joined. New York Inn and Viva appeal the bankruptcy court's grant of Associated's motion to dismiss and Associated's motion to deny attorneys' fees. Motel Owners also appeal the district court's grant of Associated's motion for summary judgment, which was based on the bankruptcy court's report and recommendation. Associated raises the issue of whether this court has jurisdiction over the appeals from the bankruptcy court's orders dismissing New York Inn as a party and the declaratory judgment cause of action and granting the motion to deny attorneys' fees, but then contends that the parties consented to the bankruptcy court's final rulings on those motions. A court of appeals has jurisdiction over appeals from final decisions, judgments, orders, and decrees entered by a district court, There was no final decision, judgment, order, or decree from the district court with respect to the bankruptcy court's rulings on the motion to dismiss and motion to deny attorneys' fees. Accordingly, this Court does not have jurisdiction over the appeals of the bankruptcy court's orders granting the motion to dismiss and motion to deny attorneys' fees. Adopting the bankruptcy court's recommendation, the district court granted Associated's motion for summary judgment on: (A) Motel Owners' breach of contract claim, (B) Motel Owners' extra-contractual claims, and (C) Motel Owners' request to reform the contract to include New York Inn as an additional insured without limitation. Motel Owners raise three theories of breach of contract: Associated's failure to pay the full amount owed for (1) repairs to the Motel (Building Repair), (2) contents in the Motel (Contents), and (3) interruption to the business caused by damage from the storm (Business Interruption). Motel Owners argue that the bankruptcy court, and by adoption the district court, overlooked issues of fact that preclude summary judgment. Motel Owners specifically argue that the bankruptcy court improperly attributed the delay in remediation to the Motel Owners, rather than Associated; did not recognize that Motel Owners sought moisture mapping before remediation, and the request was denied; and did not acknowledge the scarcity of remediation contractors following the storm. According to the Circuit Judges, although they sympathize with Motel Owners' struggle to secure a contractor following the storm and their insufficient funds to commence immediate remediation, that does not make the doctrine of concurrent causes disappear. Motel Owners do not provide any case law to support the proposition that an insurer's delay in issuing a payment for a claim means that any resulting damage to the property during the delay should be covered by the insurance policy, the Fifth Circuit finds. Their argument also contradicts the language in the Policy that instructs the insured to take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Property, the Appellate Court adds. The Circuit Judges hold that the bankruptcy court's rulings on the motion to dismiss and motion to deny attorneys' fees are not properly before them. As to the district court's grant of Associated's motion for summary judgment, they affirm. They remand to the district court to rule on the outstanding appeals relating to the motion to dismiss and motion to deny attorneys' fees. A copy of the Court's decision is available at https://urlcurt.com/u?l=qsT6iY About New York Inn A group of creditors including AP Interior, Prateek Desai and Wajattat Ali Khan, filed an involuntary Chapter 11 petition against Arlington, Texas-based New York Inn Inc. (Bankr. N.D. Tex. Case No. 21-30958) on May 21, 2021. The creditors are represented by Bill Rielly, Esq. New York Inn Inc. owns and operates a hotel located in Arlington, Texas. After an involuntary bankruptcy petition was filed, New York Inn consented to an Order for Relief in order to restructure its debts after suffering reduced revenues from the downturn in the economy precipitated by the COVID-19 pandemic and as a result of the damage to the hotel following the Texas winter storm in February 2021. The hotel has been closed since that time. New York Inn is waiting for its property insurance company to release funds to pay for the necessary repairs so that it can reopen. New York Inn has commenced legal action to collect on its insurance and has retained an independent adjuster, a contractor and litigation counsel all of which it is seeking to employ to move this case along. The Debtor has $1.02 million in total assets and $2.35 million in total liabilities. Judge Michelle V. Larson oversees the case. New York Inn tapped Joyce W. Lindauer Attorney, PLLC as bankruptcy counsel. Katharine Battaia Clark serves as the Subchapter V Trustee. Under its Second Amended Plan of Reorganization Under Subchapter V of Chapter 11, the Debtor contemplates paying a 10% return to Allowed Unsecured Claims over 36 months. NORTH AMERICAN SEALING: Case Summary & 20 Top Unsecured Creditors ----------------------------------------------------------------- Debtor: North American Sealing Solutions, LLC 3000 W Pafford St Fort Worth, TX 76110 Business Description: North American Sealing Solutions LLC is a manufacturer based in Fort Worth, Texas, specializing in sealing products and machined components for industries like oil and gas. Founded in 2010 by Tom Oswald, the Company produces items such as O-rings, seals, rubber products, and rebuild kits. Chapter 11 Petition Date: April 18, 2025 Court: United States Bankruptcy Court Northern District of Texas Case No.: 25-41374 Judge: Hon. Edward L Morris Debtor's Counsel: Joyce W. Lindauer, Esq. JOYCE W. LINDAUER ATTORNEY, PLLC 1412 Main St. Suite 500 Dallas TX 75202 Tel: (972) 503-4033 E-mail: joyce@joycelindauer.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Thomas Oswald as president. A copy of the Debtor's list of 20 largest unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/OIJQQOY/North_American_Sealing_Solutions__txnbke-25-41374__0002.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/OP2V7BY/North_American_Sealing_Solutions__txnbke-25-41374__0001.0.pdf?mcid=tGE4TAMA ORIGINCLEAR INC: Posts Net Loss of $19 Million in 2024 ------------------------------------------------------ OriginClear, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting net losses of $18,970,789 and $11,625,783 for the years ended Dec. 31, 2024 and 2023, respectively. Additionally, the Company recorded a loss from operations of $7,125,809 for the year ended Dec. 31, 2024. As of December 31, 2024, and 2023, the Company had a working capital deficit of $45,437,508 and $32,249,892, respectively, and a shareholders' deficit of $54,857,588 and $39,263,958, respectively. As of December 31, 2024, the Company had an aggregate accumulated deficit of $137,393,744. The Woodlands, Texas-based M&K CPAS, PLLC, the Company's auditor since 2019, issued a "going concern" qualification in its report dated Apr. 18, 2024, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2025, citing that the Company suffered a net loss from operations and used cash in operations, which raises substantial doubt about its ability to continue as a going concern. OriginClear said, "We have experienced net losses and negative cash flows from operating activities since our inception, and we expect these losses and negative cash flows to continue in the foreseeable future." To address the substantial doubt about the Company's ability to continue as a going concern, management is actively seeking funding through convertible notes and preferred stock offerings while leveraging revenues from existing purchase orders and outstanding invoices. While management believes these efforts will support operations, there is no assurance that financing will be available or sufficient. Future financing may involve restrictive covenants or result in shareholder dilution. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/ppw9y7h4 About OriginClear Headquartered in Clearwater, Fla., OriginClear was founded as OriginOil in 2007 and began trading on the OTC in 2008. In 2015, it was renamed as OriginClear to reflect its new mission to develop breakthrough businesses in the industrial water sector. Today, OriginClear structures itself as the Clean Water Innovation Hub and intends to use its well-developed retail investor development capabilities to help bring potentially disruptive companies to market. For the foreseeable future, however, OriginClear intends to devote its entire capabilities to the success of its subsidiary, Water On Demand, Inc. As of Dec. 31, 2024, the Company had $4,990,539 in total assets, $52,290,405 in total liabilities, $7,557,722 in commitments and contingencies and a total stockholders' deficit of $54,857,588. PHUNWARE INC: 2024 Net Loss Narrows to $10.3 Million ---------------------------------------------------- Phunware, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $10.3 million on $3.2 million of net revenues for the year ended Dec. 31, 2024, compared to a net loss of $52.8 million on $4.8 million of net revenues for the year ended Dec. 31, 2023. Liquidity and Capital Resources: "As of December 31, 2024, we held total cash of $113 million, all of which was held in the United States. We have a history of operating losses and negative operating cash flows. As we continue to focus on growing our revenues, we expect these trends to continue into the foreseeable future. "On February 1, 2022, we filed a Form S-3, which was subsequently declared effective by the SEC on February 9, 2022, pursuant to which we could issue up to $200 million in common stock, preferred stock, warrants and units. Contained therein, was a prospectus supplement pursuant to which we could sell up to $100 million of our common stock in an "at the market offering" pursuant to an At Market Issuance Sales Agreement we entered into with H.C. Wainwright & Co., LLC on January 31, 2022. We terminated our agreement with Wainwright effective June 3, 2024. "On July 6, 2022, we entered into a note purchase agreement and completed the sale of an unsecured promissory note with an original principal amount of $12.8 million in a private placement. After deducting all transaction fees paid by us at closing, net cash proceeds to us at closing were $11.8 million. No interest was to accrue on the 2022 Promissory Note. On August 14, 2023, we entered into an amendment to the 2022 Promissory Note with the noteholder. The amendment extended the maturity date to June 1, 2024 and provided that effective August 1, 2023, we were required to make monthly amortization payments of at least $800 thousand commencing on August 31, 2023 until the 2022 Promissory Note is paid-in-full. We also granted the noteholder certain limited conversion rights, which if elected by the noteholder, would reduce the required monthly payment. The limited conversion rights were subject to advance payment and volume conditions. The amendment also provided that the outstanding balance shall accrue interest at a rate of 8% and payment deferrals are no longer permitted under the 2022 Promissory Note. During the first quarter of 2024, we issued 336,550 shares of our common stock to the holder of the 2022 Promissory Note. These conversions were made pursuant to the terms of the amended 2022 Promissory Note. In addition, conversions were made in connection with the Company granting the holder additional conversion rights. As a result of the conversions, the 2022 Promissory Note has been paid-in-full. "On August 22, 2023, we entered into a common stock purchase agreement with Lincoln Park Capital Fund, LLC, which provided that, upon the terms and subject to the conditions and limitations set forth therein, we had the right, but not the obligation, to sell to Lincoln Park up to $30 million in value of shares of our common stock from time to time over the 24-month term of the purchase agreement. Concurrently with entering into the purchase agreement, we also entered into a registration rights agreement with Lincoln Park pursuant to which the Company agreed to register the sale of the shares of the Company's common stock that have been issued to Lincoln Park under the purchase agreement. We did not sell any shares to Lincoln Park during 2024. On October 24, 2024, we terminated the common stock purchase agreement with Lincoln Park effective October 25, 2024. "On January 16, 2024, we entered into a definitive securities purchase agreement with certain institutional investors for the purchase and sale of an aggregate of 800,000 shares of our common stock and pre-funded warrants to purchase up to 950,000 shares of our common stock for gross proceeds of approximately $7 million. The holders of the pre-funded warrants have exercised their rights to purchase all of the underlying common stock. "On January 18, 2024, we entered into a definitive securities purchase agreement with certain institutional investors for the purchase and sale of an aggregate of 1,096,000 shares of our common stock and pre-funded warrants to purchase up to 24,000 shares of our common stock for gross proceeds of approximately $5.6 million. The holders of the pre-funded warrants have exercised their rights to purchase all of the underlying common stock. "On February 9, 2024, we consummated a registered public offering of an aggregate of 800,000 shares of our common stock. We entered into securities purchase agreements with certain institutional investors, and as a result of the registered public offering, we raised gross proceeds of approximately $10 million. "On June 4, 2024, we entered into an Equity Distribution Agreement with Canaccord Genuity LLC, as representative of certain agents, pursuant to which we were entitled to offer and sell, from time to time, shares of our common stock for aggregate gross proceeds of up to $120 million, through the agents. "On November 1, 2024, we entered into an Amended and Restated Equity Distribution Agreement (amending the June 4, 2024 Equity Distribution Agreement) with Canaccord, and filed a registration statement on Form S-3MEF relating to the Company's existing registration statement on Form S-3 originally filed in 2022, pursuant to which we increased the aggregate amount of shares of our common stock that we were entitled to sell under our at-the-market facility to an aggregate offering price of approximately $171.5 million. "During the year ended December 31, 2024, we sold an aggregate of 12,025,688 shares of our common stock under our At Market Issuance Sales Agreement with Wainwright and Amended and Restated Equity Distribution Agreement with Canaccord for aggregate gross cash proceeds of approximately $104.5 million. "On February 9, 2025, the aforementioned registration statement on Form S-3 expired (including the subsequent registration statement on Form S-3MEF), and as a result, the Amended and Restated Equity Distribution Agreement with Canaccord terminated. "Although we expect to generate operating losses and negative operating cash flows in the future, based on the financing events described above, management believes it has sufficient cash on hand for at least one year following the filing date of this Annual Report on Form 10-K. "Our future capital requirements will depend on many factors, including our pace of growth, subscription renewal activity, the timing and extent of spend to support development efforts, additional investments in AI technology and infrastructure, the expansion of sales and marketing activities and the market acceptance of our products and services. We believe that it is likely we will in the future enter into arrangements to acquire or invest in additional companies and assets, technologies, intellectual property rights and digital assets. We may be required to seek additional equity or debt financings. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us, or at all. If we are unable to raise additional capital when desired and/or on acceptable terms, our business, operating results and financial condition could be adversely affected." A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/mryp65ey About Phunware Headquartered in Austin, Texas, Phunware, Inc. -- http://www.phunware.com-- offers a fully integrated software platform that equips companies with the products, solutions, and services necessary to engage, manage, and monetize their mobile application portfolios globally at scale. The Company's platform provides the entire mobile lifecycle of applications, media and data in one login through one procurement relationship. As of Dec. 31, 2024, the Company had $114.8 million in total assets, $7.6 million in total liabilities, and a total stockholders' equity of $107.2 million. * * * This concludes the Troubled Company Reporter's coverage of Phunware, Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. PINNACLE FOODS: Court Rules on Four Fee Applications ---------------------------------------------------- Judge Rene Lastreto II of the United States Bankruptcy Court for the Eastern District of California ruled on the four fee applications filed in the following three closely-related Chapter 11 Subchapter V cases: 1. In Re: Pinnacle Foods of California LLC, 24-11015; 2. In Re: Tyco Group LLC, 24-11016; and 3. In Re: California QSR Management, Inc., 24-11017. One application was brought by Fox Rothschild LLP, special counsel in only one of the cases, but it represented work which was performed on behalf of all three debtors. The other three fee applications were brought separately by Michael Jay Berger, general bankruptcy counsel with an application filed in each case. The four fee applications include the following: 1. Motion for Compensation by the Law Office of Fox Rothschild LLP ("the Fox Rothschild Application"). Pinnacle Case Doc. #429. Pinnacle DCN KCO-6. 2. Motion for Compensation for Michael Jay Berger ("the Berger/Pinnacle Application"). Pinnacle Case Doc. #453. Pinnacle DCN MJB-16. 3. Motion for Compensation for Michael Jay Berger ("the Berger/Tyco Application"). Tyco Case Doc. #327. Tyco DCN MJB-13. 4. Motion for Compensation for Michael Jay Berger ("the Berger/QSR Application"). QSR Case Doc. #294. QSR DCN MJB-12. On March 11, 2025, Popeyes Louisiana Kitchen, Inc., Pinnacle's franchisor, filed an Opposition to the Fox Rothschild Application, asking the court to disallow $150,783.50 of the fees requested by Fox Rothschild. On March 11, 2025, Walter R. Dahl, the Subchapter V Trustee in these cases, filed an Opposition to the Berger/Pinnacle Application, with his arguments incorporated by reference into truncated Oppositions filed regarding the Berger/Tyco and Berger/QSR Applications. The three Dahl Oppositions to the Berger Applications request denial of those Applications and possibly disgorgement of fees paid previously to Berger. In the Opposition to the Berger/Pinnacle Application, Dahl raises several issues but most of his objections are grounded in substantially the same reasons as were given by PLK in its opposition to the Fox Rothschild Application. Specifically, both PLK and Dahl argue that a substantial portion of the fees incurred by Fox Rothschild and by Berger were neither necessary nor beneficial to the estate because they were spent on a failed and quixotic effort to assume certain Franchise Agreements between Pinnacle/Tyco and PLK. The Court awarded Fox Rothschild and Berger fees and expenses on an interim basis as follows: 1. The Fee Application of Fox Rothschild is granted as modified. Fox Rothschild shall be awarded attorneys' fees in the amount of $134,518.50 and expense reimbursement in the amount of $5,112.92 on an interim basis for a total interim award of $139,631.42. 2. The Berger/Pinnacle Fee Application is granted as modified. Berger shall be awarded attorneys' fees in the amount of $50,032.00 and expense reimbursement in the amount of $1,867.27 on an interim basis for a total interim award of $51,899.27. 3. The Berger/Tyco Fee Application is granted as modified. Berger shall be awarded attorneys' fees in the amount of $15,300.00 and expense reimbursement in the amount of $682.25 on an interim basis for a total interim award of $15,982.25. 4. The Berger/QSR Fee Application is granted as modified. Berger shall be awarded attorneys' fees in the amount of $10,730.50 and expense reimbursement in the amount of $620.16 on an interim basis for a total interim award of $11,350.66. 5. No payments shall be made on any of these interim awards until further order of the court. 6. The Court reserves judgment on the necessity of any professional to disgorge some or all of any awarded and paid fees. A copy of the Court's decision is available at https://urlcurt.com/u?l=T0sEjR from PacerMonitor.com. About Pinnacle Foods of California Pinnacle Foods of California LLC operates six Popeyes franchise restaurants. The Debtor filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Cal. Case No. 24-11015) on April 22, 2024, listing $2,077,748 in assets and $4,509,986 in liabilities. The petition was signed by Imran Damani as president. Judge Rene Lastreto II presides over the case. The Debtor tapped Michael Jay Berger, Esq. at Law Offices of Michael Jay Berger as bankruptcy counsel and Craig R. Tractenberg, Esq., at Fox Rothschild LLP as special franchise counsel. PRIMERO SPINE: Hires William G. Haeberle CPA LLC as Accountant -------------------------------------------------------------- Primero Spine and Joint LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to employ William G. Haeberle, CPA, LLC as accountant. The firm will assist in the preparation of the Debtor's Monthly Operating Reports. The firm will be paid $300 for Monthly Operating Reports per month going forward. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. William G. Haeberle, CPA, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: William G. Haeberle, CPA William G. Haeberle, CPA, LLC 4446-1A Hendricks Ave. #245 Jacksonville, FL 32207 Tel: (904) 536-9810 About Primero Spine and Joint LLC Primero Spine and Joint LLC filed a Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No. 3:25-bk-01017) on April 1, 2025. The Debtor hires William G. Haeberle, CPA, LLC as accountant. PROFESSIONAL DIVERSITY: Posts Net Loss of $2.5 Million in 2024 -------------------------------------------------------------- Professional Diversity Network, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $2,511,965 attributable to the Company for the year ended Dec. 31, 2024, compared to a net loss of $4,311,299 attributable to the Company for the year ended Dec. 31, 2023. The Company reported total revenues of $6,730,605 and $7,699,037 for the years ended Dec. 31, 2024 and 2023, respectively. Oak Brook, Illinois-based Sassetti LLC, the Company's auditor since 2022, issued a "going concern" qualification in its report dated Mar. 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has incurred recurring operating losses, has a significant accumulated deficit, and will need to raise additional funds to meet its obligations and the costs of its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. At December 31, 2024, the Company's principal sources of liquidity were its cash and cash equivalents and the net proceeds from the sale of common stock during the twelve months ended December 31, 2024. The Company had an accumulated deficit of $102,414,683 on Dec. 31, 2024. During the year ended Dec. 31, 2024, the Company generated a net loss from continuing operations of $2,405,145 and used cash in continuing operations during the 12 months ended December 31, 2024, of $2,501,450. On Dec. 31, 2024, the Company had a cash balance of $1,731,155. The Company had a working capital from continuing operations of $270,695 and a working capital deficit from continuing operations of $1,106,825 on December 31, 2024, and 2023. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's ability to further implement its business plan, raise capital through the issuance of common stock, and generate revenues. Management believes that its available cash on hand and cash flow from operations may be sufficient to meet our working capital requirements through the fiscal period ending December 31, 2025, however in order to accomplish our business plan objectives, the Company will need to continue its cost reduction efforts, increase revenues, raise capital through the issuance of common stock, or through a strategic merger or acquisition. There can be no assurances that our business plans and actions will be successful, that we will generate anticipated revenues, or that unforeseen circumstances will not require additional funding sources in the future or require an acceleration of plans to conserve liquidity. Future efforts to improve liquidity through the issuance of our common stock may not be successful, or if available, they may not be available on acceptable terms. CEO Comment: "Overall, Professional Diversity Network made meaningful progress in 2024, reducing total operating losses from $4.4 million to $2.6 million--a 41% improvement. All three business units focused on operational streamlining and cost reduction as part of our broader effort to improve financial performance." said Adam He, CEO of Professional Diversity Network, Inc. "2024 was a challenging year for the job board and career fair industry, with revenue declines ranging from approximately 10% to 27%. Despite this trend, our job board and career fair business unit experienced only a 5% decline in revenue compared to 2023. Notably, our renewal rate increased by approximately 10% year-over-year. In 2024, we rebranded this business unit as TalentAlly to better serve a broader community of job seekers and provide our employer clients with access to a wider and highly qualified candidate pool. We also streamlined operations across enterprise and event sales, as well as our OFCCP compliance services, resulting in an 84% reduction in net operating loss for TalentAlly. Additionally, we upgraded our pricing model to support improved revenue performance in 2025. While RemoteMore faced a 25% decline in revenue due to industry-wide trends, it offset the impact by reducing costs by 21% and launching new products in Q1 2025, positioning the business for improved performance moving forward. NAPW also made significant strides, reducing its net operating loss by 65% due to operational efficiencies and aiming to reach breakeven in 2025. Looking ahead, Professional Diversity Network remains focused on strengthening core operations, capitalizing on strategic growth opportunities, and maximizing shareholders' value." A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/bd8w374k About Professional Diversity Headquartered in Chicago, Illinois, Professional Diversity Network, Inc. -- https://www.prodivnet.com/ -- is a global developer and operator of online and in-person networks that provides access to networking, training, educational, and employment opportunities for diverse professionals. The Company operates subsidiaries in the United States, including National Association of Professional Women (NAPW) and its brand, International Association of Women (IAW), which is one of the largest, most recognized networking organizations of professional women in the country, spanning more than 200 industries and professions. Through an online platform and its relationship recruitment affinity groups, the Company provides its employer clients a means to identify and acquire diverse talent and assist them with their efforts to comply with the Equal Employment Opportunity Office of Federal Contract Compliance Program. The Company's mission is to utilize the collective strength of its affiliate companies, members, partners, and unique proprietary platform to be the standard in business diversity recruiting, networking, and professional development for women, minorities, veterans, LGBTQ+, and disabled persons globally. As of Dec. 31, 2024, the Company had $7,981,801 in total assets, $3,140,897 in total liabilities, and a total stockholders' equity of $4,840,904. PURDUE PHARMA: Fine-Tunes Plan Documents ---------------------------------------- Purdue Pharma L.P., and its affiliated debtors submitted a Thirteenth Amended Joint Chapter 11 Plan of Reorganization dated March 19, 2025. On or before the Effective Date, the Debtors, the Shareholder Payment Parties and the Settling Creditors shall enter into the Shareholder Settlement Agreements. Pursuant to the Public Entity Settlements, the Private Entity Settlements, the Shareholder Settlement Agreements and the Plan, in exchange for among other things, the Shareholder Estate Claim Releases, the Third-Party Releases and the Channeling Injunction. Class 6 consists of Public School Claims. On the Effective Date, in full and final satisfaction, settlement and release of the Debtors' obligations in respect of Public School Claims, the Public School Trust shall receive (i) the Initial Public Schools' Special Education Initiative Contribution and (ii) the MDT Public School Districts Claim. * As of the Effective Date, in accordance with the Plan and the Master TDP, any and all liability of the Debtors and the other Protected Parties for any and all Public School Channeled Claims shall automatically, and without further act, deed or court order, be channeled exclusively to and assumed by the Public School Trust and shall be exclusively satisfied by payments from the Public School Trust. Each Public School Channeled Claim shall be asserted exclusively against the Public School Trust and resolved solely in accordance with the terms, provisions and procedures of the Public School TDP. The sole recourse of any Person on account of any Public School Channeled Claim, whether or not the Holder thereof participated in the Chapter 11 Cases and whether or not such Holder filed a Proof of Claim in the Chapter 11 Cases, shall be to the Public School Trust as and to the extent provided in the Public School TDP. Class 7 consists of Hospital Claims. On the Effective Date, in full and final satisfaction, settlement and release of the Debtors' obligations in respect of Hospital Claims, the Hospital Trust shall receive (i) the Initial Hospital Trust Distribution and (ii) the MDT Hospital Claim. * As of the Effective Date, in accordance with the Plan and the Master TDP, any and all liability of the Debtors and the other Protected Parties for any and all Hospital Channeled Claims shall automatically, and without further act, deed or court order, be channeled exclusively to and assumed by the Hospital Trust and shall be exclusively satisfied by payments from the Hospital Trust. Each Hospital Channeled Claim shall be asserted exclusively against the Hospital Trust and resolved solely in accordance with the terms, provisions and procedures of the Hospital TDP. The sole recourse of any Person on account of any Hospital Channeled Claim, whether or not the Holder thereof participated in the Chapter 11 Cases and whether or not such Holder filed a Proof of Claim in the Chapter 11 Cases, shall be to the Hospital Trust as and to the extent provided in the Hospital TDP. Class 9 consists of ER Physician Claims. On the Effective Date, in full and final satisfaction, settlement and release of the Debtors' obligations in respect of ER Physician Claims, the ERP Trust shall receive (i) the Initial ERP Trust Distribution and (ii) the MDT ERP Claim. * As of the Effective Date, in accordance with the Plan and the Master TDP, any and all liability of the Debtors and the other Protected Parties for any and all ER Physician Channeled Claims shall automatically, and without further act, deed or court order, be channeled exclusively to and assumed by the ERP Trust and shall be exclusively satisfied by payments from the ERP Trust. Each ER Physician Channeled Claim shall be asserted exclusively against the ERP Trust and resolved solely in accordance with the terms, provisions and procedures of the ERP TDP. The sole recourse of any Person on account of any ER Physician Channeled Claim, whether or not the Holder thereof participated in the Chapter 11 Cases and whether or not such Holder filed a Proof of Claim in the Chapter 11 Cases, shall be to the gERP Trust as and to the extent provided in the ERP TDP. Like in the prior iteration of the Plan, except to the extent a Holder of an Allowed Avrio General Unsecured Claim and Avrio Health L.P. agree to different treatment, on the Effective Date, or as soon as reasonably practicable thereafter, each Holder of an Allowed Avrio General Unsecured Claim shall receive, on account of such Allowed Claim, payment in full in Cash. Class 11(b) consists of Adlon General Unsecured Claims. Except to the extent a Holder of an Allowed Adlon General Unsecured Claim and Adlon Therapeutics L.P. agree to different treatment, on the Effective Date, or as soon as reasonably practicable thereafter, each Holder of an Allowed Adlon General Unsecured Claim shall receive, on account of such Allowed Claim, payment in full in Cash. On or before the Effective Date, the Debtors shall take all necessary steps to form the Plan Administration Trust in accordance with the Plan and the PAT Agreement. The Plan Administration Trust shall be established for the purposes described in this Plan and any others more fully described in the PAT Agreement, shall have no objective to continue or engage in the conduct of trade or business and shall be subject to the jurisdiction of the Bankruptcy Court. The Plan Administration Trust shall, in each case in accordance with the Plan and the PAT Agreement: * hold, manage, sell and invest the PAT Assets for the benefit of Holders of Allowed Claims (other than Channeled Claims and Federal Government Unsecured Claims); * administer, process, resolve and liquidate Claims (other than Channeled Claims and Federal Government Unsecured Claims), including through the prosecution and resolution of objections to Disputed Avrio General Unsecured Claims, Disputed Adlon General Unsecured Claims or Disputed Other General Unsecured Claims; * hold and maintain the PAT Reserves and the PAT Distribution Account and maintain the Professional Fee Escrow Account and the account described in Section 5.3 (e) of the Plan; and * make Distributions to Holders of Allowed Claims (other than Channeled Claims and Federal Government Unsecured Claims) and other payments from the Plan Administration Trust, the Professional Fee Escrow Account and the account described in Section 5.3 (e) of the Plan. A full-text copy of the Thirteenth Amended Plan and Disclosure Statement dated March 19, 2025 is available at https://urlcurt.com/u?l=FPHgvA from Prime Clerk LLC, claims agent. Counsel to the Debtors: DAVIS POLK & WARDWELL LLP 450 Lexington Avenue New York, New York 10017 Marshall S. Huebner Benjamin S. Kaminetzky Eli J. Vonnegut Christopher S. Robertson Joshua Y. Sturm Abraham Bane About Purdue Pharma LP Purdue Pharma L.P. and its subsidiaries -- http://www.purduepharma.com/-- develop and provide prescription medicines and consumer products that meet the evolving needs of healthcare professionals, patients, consumers and caregivers. Purdue's subsidiaries include Adlon Therapeutics L.P., focused on treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and related disorders; Avrio Health L.P., a consumer health products company that champions an improved quality of life for people in the United States through the reimagining of innovative product solutions; Imbrium Therapeutics L.P., established to further advance the emerging portfolio and develop the pipeline in the areas of CNS, non-opioid pain medicines, and select oncology through internal research, strategic collaborations and partnerships; and Greenfield Bioventures L.P., an investment vehicle focused on value-inflection in early stages of clinical development. Opioid makers in the U.S. are facing pressure from a crackdown on the addictive drug in the wake of the opioid crisis and as state attorneys general file lawsuits against manufacturers. More than 2,000 states, counties, municipalities and Native American governments have sued Purdue Pharma and other pharmaceutical companies for their role in the opioid crisis in the U.S., which has contributed to the more than 700,000 drug overdose deaths in the U.S. since 1999. OxyContin, Purdue Pharma's most prominent pain medication, has been the target of over 2,600 civil actions pending in various state and federal courts and other for across the United States and its territories. On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19-23649), after reaching terms of a preliminary agreement for settling the massive opioid litigation. The Debtors' consolidated balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets and $562 million in liabilities. U.S. Bankruptcy Judge Robert Drain oversees the cases. The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP, as legal counsels; PJT Partners as investment banker; AlixPartners as financial advisor; and Grant Thornton, LLP as tax structuring consultant. Prime Clerk, LLC, is the claims agent. Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the official committee of unsecured creditors appointed in the Debtors' bankruptcy cases. David M. Klauder, Esq., is the fee examiner appointed in the Debtors' cases. The fee examiner is represented by Bielli & Klauder, LLC. * * * U.S. Bankruptcy Judge Robert Drain in early September 2021 approved a plan to turn Purdue into a new company (Knoa Pharma LLC) no longer owned by members of the Sackler family, with its profits going to fight the opioid epidemic. The Sackler family agreed to pay $4.3 billion over nine years to the states and private plaintiffs and in exchange for a lifetime legal immunity. The deal resolves some 3,000 lawsuits filed by state and local governments, Native American tribes, unions, hospitals and others who claimed the company's marketing of prescription opioids helped spark and continue an overdose epidemic. Separate appeals to approval of the Plan have already been filed by the U.S. Bankruptcy Trustee, California, Connecticut, the District of Columbia, Maryland, Rhode Island and Washington state, plus some Canadian local governments and other Canadian entities. In early March 2022, Purdue Pharma reached a nationwide settlement over its role in the opioid crisis, with the Sackler family members boosting their cash contribution to as much as $6 billion. The settlement was hammered out with attorneys general from the eight states -- California, Connecticut, Delaware, Maryland, Oregon, Rhode Island, Vermont and Washington -- and D.C. who had opposed the previous settlement. R & H MOTOR: Hires Jason Ward Law LLC as Bankruptcy Counsel ----------------------------------------------------------- R & H Motor Group, Inc. seeks approval from the U.S. Bankruptcy Court for the District of South Carolina to employ Jason Ward Law, LLC as bankruptcy counsel. The firm's services include: (a) prepare or amend schedules; (b) represent in contested matters; (c) prepare a plan of reorganization and disclosure statement; and (d) assist on other matters which may arise during the administration of this case. The firm will be paid at these rates: Jason Ward, Attorney $325 per hour Paralegals and Support Staff $125 per hour The firm will be paid a retainer of $15,000. Mr. Ward disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jason M. Ward, Esq. Jason Ward Law, LLC 414-D Pettigru St. Greenville, SC 29601 Tel: (864) 239-0007 Email: Jason@wardlawsc.com About R & H Motor Group, Inc. R & H Motor Group, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D.S.C. Case No. 24-04374) on Dec. 6, 2024, disclosing under $1 million in both assets and liabilities. The Debtor is represented by POHL BANKRUPTCY, LLC. RADIANT ONE: Unsecureds Will Get 10% of Claims over 5 Years ----------------------------------------------------------- Radiant One, LLC filed with the U.S. Bankruptcy Court for the Eastern District of North Carolina a Disclosure Statement describing Plan of Reorganization dated March 19, 2025. The Debtor is a North Carolina professional limited liability company owned by Accolades Investments, LLC and Kairali Ventures, LLC, which are, in turn, owned by Philip Matthew and Manoj Michael, who manage the operation of the Debtor's salon in Fuquay-Varina, North Carolina. The Debtor operates a "Cost-Cutters" hair salon franchise from its location at 1356 N. Main Street in Fuquay-Varina. The company was established in 2020. The Debtor previously owned franchise rights for multiple other locations but sole all but the current Fuquay-Varina store to other franchisees through the franchisor in 2024. Since the Petition Date, the Debtor has taken steps to reduce staff and overhead. The Debtor has worked to ensure it has reduced all of its overhead and ongoing operation expenses as far as possible to maintain operations and free up as much revenue as possible to make payments to its creditors under its Plan. The Debtor has focused on reducing overhead costs as well as increasing salon efficiency. The Debtor hired bankruptcy counsel and has worked with counsel to prosecute this Chapter 11 proceeding. Class 3 consists of General Unsecured Claims. The Debtor believes that Allowed General Unsecured Claims total $578,990.00, including the bifurcated amount of secured claims, but not including the unsecured debts owed to insiders, which will be subordinated to all other claims. The Debtor proposes to satisfy this class by paying a total of $60,000.00. This amount will pay Allowed General Unsecured Claims approximately 10% of each claim. Said payments shall be made in equal quarterly installments of $3,000.00, over five years, on a pro rata basis, with the first quarterly installment due on July 1, 2025 and the final quarterly installment due on April 1, 2030. This Class is impaired. The Debtor expects to receive average gross monthly receipts in the amount of $18,500.00 for the next several months. The Debtor expects revenues to increase over time, such that it will always generate at least as much net revenue to fund this Plan as when the Plan is filed. A full-text copy of the Disclosure Statement dated March 19, 2025 is available at https://urlcurt.com/u?l=chx9Rq from PacerMonitor.com at no charge. Counsel to the Debtor: Danny Bradford, Esq. Bradford Law Offices 455 Swiftside Drive, #106 Cary, NC 27518 Tel: (919) 758-8879 Email: Dbradford@bradford-law.com About Radiant One LLC Radiant One, LLC operates as a beauty salon in Fuquay-Varina, N.C. Radiant One sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-00787) on March 4, 2025, listing up to $500,000 in assets and up to $1 million in liabilities. Manoj Michael, manager of Radiant One, signed the petition. Judge Pamela W. McAffee oversees the case. Danny Bradford, Esq., at Paul D. Bradford, PLLC is the Debtor's legal counsel. Live Oak Banking Company, as secured creditor, is represented by: William walt Pettit, Esq. Hutchens Law Firm, LLP 6230 Fairview Road, Suite 315 Charlotte, NC 28210 (704) 362-9255 walt.pettit@hutchenslawfirm.com REBECCA LOPEZ-DUPREY: Court Loses Summary Judgment Bid in MGM Suit ------------------------------------------------------------------ In the disability-based employment discrimination case captioned as REBECCA LOPEZ-DUPREY v. MGM NATIONAL HARBOR, LLC, Case No. 23-cv-02812-DKC (D. Md.), Judge Deborah K. Chasanow of the United States District Court for the District of Maryland denied MGM National Harbor, LLC's motion for summary judgment and plaintiff's partial motion for summary judgment. In November 2016, Plaintiff began working as a cocktail server for Defendant at the MGM Hotel and Casino in Oxon Hill, Maryland. Plaintiff, like other cocktail servers, was required to wear black high heels as part of her work uniform. Plaintiff contends that in January 2017, she requested a reasonable accommodation to wear flat (non-heeled) shoes at work and that her request was denied. Defendant maintains it has no record of a January 2017 accommodation request. Plaintiff alleges she continued to request reasonable accommodation to wear flat shoes to work but it was continually denied. Plaintiff's doctor explained that Plaintiff had Equinus Deformity and Achillis Tendinitis, and that Plaintiff should avoid heels and wear good supportive shoes to aid her in performing her job duties. On May 12, 2022, Plaintiff was terminated. Plaintiff filed a six count complaint on Oct. 18, 2023. Counts one and two allege failure to accommodate under the Americans with Disability Act of 1990, 42 U.S.C. Sec. 12101, et seq., and the Maryland Fair Employment Practices Act, Md. Code Ann., State Gov't Secs. 20–601 et seq.; counts three and four allege disability discrimination under the same two acts; and counts five and six allege retaliation under the same two acts. In violation of Local Rule 105.2.c, two separate motions for summary judgment were filed. On May 9, 2024, Defendant filed a motion for summary judgment. Plaintiff filed separately a partial motion for summary judgment as to counts I and II on May 28, 2024. On Oct. 25, 2023, one week after the complaint in this case was filed, Plaintiff filed for Chapter 11 Bankruptcy in the United States Bankruptcy Court for the District of Maryland. In Plaintiff's Voluntary Petition for Individuals Filing for Bankruptcy, she declared the present lawsuit against Defendant as an exempt asset valued at "$0.00." Her plan was confirmed on March 8, 2024. On May 14, 2024, Plaintiff amended the value of this lawsuit to "Unknown." Defendant argues that because Plaintiff valued this lawsuit at zero dollars in her Bankruptcy Petition, the doctrine of judicial estoppel precludes her from proceeding with her claims in the present litigation. The Court finds Defendant has not shown that judicial estoppel applies in this situation because there are disputes as to several factors, including whether a court accepted the assertion and whether Plaintiff valued this lawsuit at zero dollars intentionally to mislead the court. The evidence is not as "clear" as Defendant may wish. There is nothing in the record to show that the plan would not have been approved if the "unknown" amount were in the petition instead of "$0.00," particularly if the asset is exempt regardless. Accordingly, Defendant's motion will be denied. Plaintiff alleges that Defendant violated the Americans with Disabilities Act, 42 U.S.C. Sec. 12101 et seq., and the Maryland Fair Employment Practices Act, Md. Code Ann., State Gov't Secs. 20–601 et seq., when it failed to provide her reasonable accommodations. Specifically, Plaintiff asserts that Defendant prohibited the very accommodation Plaintiff needed, sneaker type footgear. The evidence shows Defendant granted Plaintiff's July 2019 accommodation request (although its practical application is in dispute), and honored it until December 2021. Thereafter the evidence is conflicting as to what accommodation was permitted, whether the prior accommodation was altered, whether Plaintiff properly engaged in discussions, and when Defendant received the April 22, 2022 doctor's note, i.e., was it before July 22, 2022. Accordingly, Plaintiff's partial motion for summary judgment on Counts I and II will be denied. A copy of the Court's decision is available at https://urlcurt.com/u?l=FcrKB8 from PacerMonitor.com. RECOM LLC: Judge Makes Findings of Fact on Plan of Reorganization ----------------------------------------------------------------- After a confirmation hearing on April 10, 2025, Judge Joel T. Marker of the United States Bankruptcy Court for the District of Utah makes findings of fact and conclusions of law regarding the confirmation of Recom LLC's Plan of Reorganization dated February 21, 2025. The solicitation of votes for acceptance or rejection of the Plan complied with Sec. 1126, Bankruptcy Rules 3017.2 and 3018, all other applicable provisions of the Bankruptcy Code, and all other rules, laws, and regulations. Based on the record before the Court in the Bankruptcy Case, the Debtor's solicitation of votes on the Plan was proper and done in good faith. The Plan establishes three Classes of Claims and one Class of Equity Interests. Based on the Hales Declaration and the Ballot Register, no creditors in Class 1 or 3 submitted ballots or objected to the Plan. Accordingly, Classes 1 and 3 are deemed to have accepted the Plan under In re Ruti-Sweetwater, Inc., 836 F.2d 1263, 1267-68 (10th Cir. 1988) (presuming acceptance of class of creditors that did not return a ballot and did not timely object to confirmation). Class 2 is impaired and were entitled to vote on the Plan. The holders of Claims in Classes 2 who returned Ballots unanimously voted to accept the Plan. Class 4 is unimpaired and, as such, automatically is presumed to accept the Plan. The Plan, as supplemented and modified by the Confirmation Order, complies with the applicable provisions of the Bankruptcy Code, thereby satisfying Secs. 1129(a)(1) and 1191(a). As required by Sec. 1123(a)(1), Article 3 of the Plan properly designates classes of Claims and classifies only substantially similar Claims in the same classes pursuant to Sec. 1122. The Plan provides for the same treatment for each Claim or Interest in each respective Class, unless the holder(s) of a particular Claim(s) have agreed to less favorable treatment with respect to such Claim, thereby satisfying Sec. 1123(a)(4). The Plan provides adequate and proper means for its implementation, thereby satisfying Sec. 1123(a)(5). Among other things, Articles 5 and 6 of the Plan provide for (a) the vesting of the property of the Debtor and its chapter 11 bankruptcy Estate in the Reorganized Debtor, (b) the Reorganized Debtor's use and retention of property, (c) the continuation of normal business operations by the Reorganized Debtor, and (d) distributions to creditors equal to the Reorganized Debtor's projected Disposable Income. Section 1123(a)(7) is satisfied in that the Plan provides that Danny Hales shall continue to manage the Reorganized Debtor and shall paid at a reasonable salary, in a set amount for the Plan Period. Mr. Hales is the person most knowledgeable about the Debtor's business, and the management of the Debtor by Mr. Hales is in the best interests of creditors and is consistent with public policy. The Plan's provisions are appropriate and consistent with the applicable provisions of the Bankruptcy Code, including provisions regarding (a) the assumption and/or rejection of executory contracts and unexpired leases, (b) the retention and enforcement by the Debtor of claims, and (c) modification of the rights of holders of secured claims. Thus, Sec. 1123(b) is satisfied. The Plan complies with the applicable provisions of the Bankruptcy Code. Likewise, the Debtor complied with the applicable provisions of the Bankruptcy Code. Thus, Secs. 1129(a)(1) and (a)(2) are satisfied. The Debtor is a proper proponent of the Plan under Sec. 1121(c). The Plan is proposed in good faith and not by any means forbidden by law and, therefore, complies with the requirements of Sec. 1129(a)(3). The Plan is feasible and complies with Sec. 1129(a)(11) because confirmation is not likely to be followed by a liquidation or the need for further financial reorganization of the Debtor. The Court is satisfied that the Plan offers a reasonable prospect of success and is workable. The monthly operating reports submitted by the Debtor in the Case to date show that the Debtor's projected Disposable Income is a reasonable projection of the Debtor's disposable income for the Plan Period, as that term is used in Sec. 1191(d). As such, the requirements of section 1129(a)(11) are satisfied. In summary, the Plan complies with, and the Debtor satisfies, all applicable confirmation requirements, and the Plan will be confirmed under Sec. 1191(a) by entry of the separate Confirmation Order. A copy of the Court's decision is available at https://urlcurt.com/u?l=DkxE9q from PacerMonitor.com. About Recom LLC Recom, LLC, is a logistics and fulfillment company, commonly known as a third-party logistics company, or 3PL. The Debtor sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Utah Case No. 24-23750) on July 30, 2024, listing $100,001 to $500,000 in both assets and liabilities. Judge Peggy Hunt presides over the case. George B. Hofmann, Esq., at Cohne Kinghorn PC, is the Debtor's legal counsel. RICARDO BORREGO: Ex-Counsel's Compensation Request Okayed --------------------------------------------------------- The Honorable Mark A. Randon of the United States Bankruptcy Court for the Eastern District of Michigan approved Osipov Bigelman, P.C.'s application for compensation in the bankruptcy case of Ricardo Borrego. Strobl PLLC's objection is overruled. The firm seeks $31,275 in fees and $1,801.45 in expenses. On Dec. 5, 2024, Osipov Bigelman, P.C. prepared and filed an emergency Chapter 11 bankruptcy petition on Debtor's behalf. The firm worked with Debtor to gather information to file Schedules and other required pleadings; represented Debtor at the Initial Debtor Interview, 341 Meeting of Creditors, and initial scheduling conference; and communicated with the United States Trustee, the Official Committee of Unsecured Creditors, and various other creditors. Following a breakdown in the attorney-client relationship, the Court granted Osipov Bigelman, P.C.'s motion to withdraw. The Court authorized the employment and retention of Strobl PLLC as substitute counsel for Debtor. The Court finds Strobl PLLC had appropriate notice of Osipov Bigelman, P.C.'s application for compensation, and its request for a hearing (i.e., the objection) was not timely. Therefore, the Court is authorized to act without an actual hearing. The Court reviewed Osipov Bigelman, P.C.'s billing report and finds the hourly rate and the hours expended are reasonable. It also considered the novelty of the issues presented, the difficulty of the case, and the expertise of counsel. Under the lodestar analysis and consideration of other factors, the Court approves the application for compensation. A copy of the Court's decision is available at https://urlcurt.com/u?l=vwCDLE from PacerMonitor.com. Ricardo Borrego filed for Chapter 11 bankruptcy protection Bankr. E.D. Mich. Case No. 24-51513 ) on December 5, 2024, listing under $1 million in both assets and liabilities. The Debtor was represented by Yuliy Osipov, Esq. RICHMOND TELEMATICS: Court Extends Cash Collateral Access to May 6 ------------------------------------------------------------------ Richmond Telematics, Inc. received another extension from the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, to use cash collateral. The court order extended the company's authority to use cash collateral from April 1 to May 6 to pay the amounts expressly authorized by the court, including any required monthly payments to the Subchapter V trustee; the expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and (c) additional amounts as may be expressly approved in writing by its secured creditor, the U.S. Small Business Administration. The budget projects total operating expenses of $364,799.16 for the period from February to May. As protection, SBA and other secured creditors were granted a perfected post-petition lien on cash collateral, with the same extent, validity and priority as their pre-bankruptcy liens. In addition, Richmond Telematics was ordered to keep its property insured in accordance with the obligations under the loan and security documents with secured creditors. The next hearing is scheduled for May 6. About Richmond Telematics Inc. Richmond Telematics, Inc. is an automotive repair shop specializing in transmission services. It offers a wide range of services including automatic, manual, and continuously variable transmissions, as well as differential, axle, driveshaft, and suspension repairs. Richmond Telematics filed Chapter 11 petition (Bankr. M.D. Fla. Case No. 25-00907) on February 18, 2025, listing $1,216,440 in assets and $1,614,121 in liabilities. Christine Fernandez, president of Richmond Telematics, signed the petition. Judge Lori V. Vaughan oversees the case. Jeffrey S. Ainsworth, Esq., at Branson Law, PLLC, represents the Debtor as bankruptcy counsel. RIGHT SIZE: Court OKs Deal to Use SBA's Cash Collateral ------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California approved a stipulation between Right Size Plumbing & Drain Co, Inc. and the U.S. Small Business Administration, allowing the company to use the agency's cash collateral. The stipulation authorizes the company to use cash collateral to pay its post-petition expenses from May 1 until a Chapter 11 plan is confirmed. As protection, SBA will receive a replacement lien on post-petition revenues, to the extent that its collateral is diminished by the use of cash collateral. In addition, SBA will receive a monthly payment of $1,135. In 2020, Right Size obtained a COVID Economic Injury Disaster Loan in the amount of $150,000 from SBA. The loan was modified several times, increasing the total loan amount to $2 million by January 2022. As of the bankruptcy filing, the outstanding balance was $2.104 million. The SBA loan is secured by all tangible and intangible personal property of the company, including accounts, inventory, equipment and general intangibles. About Right Size Plumbing & Drain Co Right Size Plumbing & Drain Co Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-11886) on November 11, 2024, with up to $500,000 in assets and up to $10 million in liabilities. David E. Jones, president of Right Size, signed the petition. Judge Victoria S. Kaufman oversees the case. The Debtor is represented by Michael Jay Berger, Esq. RMBQ INC: Section 341(a) Meeting of Creditors on May 14 ------------------------------------------------------- On April 16, 2025, RMBQ Inc. filed Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of California. According to court filing, the Debtor reports $1,978,216 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on May 14, 2025 at 11:00 AM To access telephonic 341 meeting, call 877-874-4964 and enter passcode 9790041#. About RMBQ Inc. RMBQ Inc., d/b/a Ramones Mexican BBQ, California Burrito Company LLC, and Craft Burrito Company, 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. RMBQ Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. ) on April 16, 2025. In its petition, the Debtor reports total assets of $195,962 and total liabilities of $1,978,216. Honorable Bankruptcy Judge J Barrett Marum handles the case. The Debtor is represented byJoanne P. Sanchez, Esq. at SANCHEZ & BALTAZAR ATTORNEYS, P.C. ROBERT R. PILKINGTON: Court Tosses Appeal in Consolidated Case -------------------------------------------------------------- Judges Bonnie A. Bulla, Michael P. Gibbons and Deborah L. Westbrook of the Court of Appeals of the State of Nevada dismissed without prejudice the following cases: (1) ROBERT R. PILKINGTON AND DENISE L. PILKINGTON, Appellants, vs. HUNTER LIGGETT; JILL RENE STYNDA; JANET E. LENK COHEN; CARIN LENK SLOANE; KRISTIN NOEL LENK PFEIFER; AND GINGER SEPURY CLERIC L. STUMNE, NYE COUNTY PUBLIC ADMINISTRATOR, Respondents, No. 88503-COA (Nev. Ct. App.); and (2) ROBERT R. PILKINGTON; AND DENISE L. PILKINGTON, Petitioners, vs. THE FIFTH JUDICIAL DISTRICT COURT OF THE STATE OF NEVADA, IN AND FOR THE COUNTY OF NYE; AND THE HONORABLE KIMBERLY A. WANKER, DISTRICT JUDGE, Respondents and HUNTER LIGGETT; JILL RENE STYNDA; JANET E. LENK COHEN CARIN LENK SLOANE; AND KRISTIN NOEL LENK PFEIFER, Real Parties in Interest, No. 88616-COA (Nev. Ct. App.). This is a consolidated appeal from, and original petition for extraordinary relief challenging, a district court order and judgment awarding attorney fees and declaring appellants/petitioners vexatious litigants. On Feb. 14, 2025, this Court issued an order directing the parties to address whether this matter was subject to an automatic stay stemming from appellants'/petitioners' Chapter 11 bankruptcy proceedings. In their pro se response, appellants/petitioners agree to move the Bankruptcy Court for a leave from the Automatic Stay. Respondents/real parties in interest did not respond to this Court's order. Given that appellants/petitioners concede that the automatic stay applies to this matter, it may linger indefinitely on this Court's docket pending final resolution of the bankruptcy proceedings. Accordingly, the Appellate Judges hold, that judicial efficiency will best be served if the matter is dismissed without prejudice. Because such a dismissal does not require this court to reach the merits of the matter and is not inconsistent with the primary purposes of the bankruptcy stay, we conclude that the dismissal will not violate the bankruptcy stay. They therefore dismiss this matter without prejudice to appellants/petitioners' right to move for reinstatement of the matter upon either the lifting of the bankruptcy stay or final resolution of the bankruptcy proceedings, if appellants/petitioners deem such a motion appropriate at the time. A copy of the Court's decision is available at https://urlcurt.com/u?l=KrJ8i2 ROBERT R. PILKINGTON: Court Tosses Appeal in Ligett, et al. Suit ---------------------------------------------------------------- Judges Bonnie A. Bulla, Michael P. Gibbons and Deborah L. Westbrook of the Court of Appeals of the State of Nevada dismissed without prejudice the appealed case styled as ROBERT R. PILKINGTON; AND DENISE L. PILKINGTON, HUSBAND AND WIFE, INDIVIDUALLY AND JOINTLY, Appellants, vs. HUNTER LIGGETT; JANET LENK COHEN; CARIN LENK SLOANE; KRISTIN NOEL PFEIFER; JILL RENE STYNDA; GINGER SIMPSON F/K/A GINGER STUMNE; AND WELLS FARGO BANK NATIONAL ASSOCIATION, A FOREIGN FOR-PROFIT (BUSINESS) CORPORATION DOING BUSINESS IN THE STATE OF NEVADA, Respondents, No. 879386-COA (Nev. Ct. App.). Appellants Robert R. Pilkington and Denise L. Pilkington appeal from a district court judgment in a trust dispute. On Feb. 14, 2025, this Court issued an order directing the parties to address whether this appeal was subject to an automatic stay stemming from appellants' Chapter 11 bankruptcy proceedings. Having considered the parties' responses and the applicable law, the Court concludes that, although appellants were the plaintiffs below, the automatic stay applies. However, a motion for attorney fees, such as is the subject of this appeal, is treated as a separate action against the plaintiff bankruptcy debtors, and therefore the appeal of the order granting attorney fees is subject to the automatic stay, the Court finds. Given the applicability of the automatic stay, this appeal may linger indefinitely on this Court's docket pending final resolution of the bankruptcy proceedings. Accordingly, the Appellate Judges hold that judicial efficiency will best be served if the appeal is dismissed without prejudice. Because such a dismissal does not require this Court to reach the merits of the appeal and is not inconsistent with the primary purposes of the bankruptcy stay, we conclude that the dismissal will not violate the bankruptcy stay. They therefore dismiss this appeal without prejudice to appellants' right to move for reinstatement of the appeal upon either the lifting of the bankruptcy stay or final resolution of the bankruptcy proceedings, if appellants deem such a motion appropriate at the time. A copy of the Court's decision is available at https://urlcurt.com/u?l=xtcT8g ROCK 51: Loses Bid to Stay Order on Pref 7 Lease Agreement ---------------------------------------------------------- The Honorable Michael E. Wiles of the United States Bankruptcy Court for the Southern District of New York denied Rock 51, LLC's motion for a stay pending appeal of a decision holding that its lease agreement with Pref 7 West 51st Street, LLC had been validly terminated. In a Decision and Order entered March 31, 2025 the Court held that a lease agreement dated Feb. 1, 2022 between Debtor Rock 51, LLC, and landlord Pref 7 West 51st Street, LLC had been validly terminated as of Aug. 9, 2024 and that Rock 51 had no further rights to the premises and no ability to assume the Lease. Rock 51 filed an appeal on April 4, 2025, and on April 9, 2025, It filed a motion seeking a stay pending that appeal. Judge Wiles held an emergency hearing on the stay motion on April 10, 2025. The Court says Rock 51 has not made a strong showing that is likely to succeed on appeal, or that there are serious issues that should be addressed on appeal. According to the Court, Rock 51 also does not face irreparable harm. It has argued in its papers that in the absence of a stay it may be evicted and may therefore lose any chance of opening the restaurant that it had hoped to open. During argument, however, counsel to the Landlord conceded that if Rock 51 were evicted, and if Rock 51 thereafter were to succeed on appeal in getting a ruling that the purported termination of the Lease was invalid, then Rock 51 would have the right to sue for damages for the wrongful termination of the Lease. On the other hand, the Landlord would face the risk of substantial injury from a stay of eviction. If the Landlord were to win on appeal, however, Rock 51 will have few assets and no meaningful ability to pay any pre-petition claims that have accumulated, the Court finds. Rock 51's proposal, then, would mean that the Landlord would accrue additional enforceable contractual claims for which it would have no meaningful ability to obtain any actual compensation. The Court further finds a stay also would delay the Landlord's ability to re-let the space. Rock 51 has proposed to pay rent with no other bond pending appeal. The absence of a bond would mean, in effect, that the Landlord would have no meaningful claim against Rock 51 for damages if a stay of eviction resulted in a lost opportunity to re-let the space to another tenant. Judge Wiles concludes that a stay is not warranted. There is no meaningful prospect of success on appeal, no risk of irreparable harm, and a substantial risk of prejudice to the Landlord if a stay were to be granted, without any assurance that a bond could be posted in amounts that would provide appropriate protection to the Landlord. A copy of the Court's decision is available at https://urlcurt.com/u?l=8p9hzm from PacerMonitor.com. About Rock 51 LLC Rock 51 LLC is a limited liability company. Rock 51 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.: 25-10034) on January 12, 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 Michael E. Wiles handles the case. Kevin J. Nash, Esq., at Goldberg Weprin Finkel Goldstein LLP, represents the Debtor as counsel. SABER AUTOMOTIVE: Hires Levitt Law APC as Transactional Attorney ---------------------------------------------------------------- Saber Automotive, LLC (MT) seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Levitt Law, APC as transactional attorney. The firm will draft contracts, review contracts and advise Debtor on various licenses, leases, and other legal documents involved in the refurbishing and sale of vehicles. The firm will be paid at these rates: Partners $515 per hour Associates $515 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Fradis Fezvani, a partner at Levitt Law, APC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Scott L. Levitt, Esq. Levitt Law, APC 311 Main Street, Suite 8 Seal Beach, CA 90740 Tel: (562) 493-7548 Email: scott@levittlawca.com About Saber Automotive Saber Automotive LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-13090) on Dec. 2, 2024. In the petition filed by Fardis Rezvani, as managing member, the Debtor reports total assets of $32,500 and total liabilities of $1,347,548. The Debtor is represented by Michael R. Totaro, Esq. at TOTARO & SHANAHAN, LLP. SAFE HARBOR: Expresses 'Going Concern' Doubts --------------------------------------------- Jim DuPlessis of ALM/Credit Union Times reports that Safe Harbor Financial Services, the cannabis lending firm spun off from Partner Colorado Credit Union (PCCU) in 2022, issued a "going concern" warning in its 2024 annual report, raising doubts about its ability to continue operating beyond the next 12 months. In its Form 10-K filed April 10, 2025, the Denver-based company confirmed a $48.3 million net loss for 2024—figures consistent with its April 1 news release. In a prior late filing notice to the SEC, the company had attributed delays in part to its reassessment of long-term viability. The 10-K explicitly states there is "substantial doubt" about Safe Harbor's ability to continue as a going concern. Management admitted in the filing that its earlier assessment was flawed and not properly supported under generally accepted accounting principles (GAAP). The revised analysis cites overreliance on positive non-GAAP trends, including adjustments to working capital and EBITDA. As of December 31, 2024, Safe Harbor reported just $2.3 million in cash and a net working capital deficit of $983,833, down from $4.9 million in cash and a $135,355 deficit a year earlier. Operating losses totaled $7.1 million in 2024, following a $20.7 million loss in 2023. The company stated that its future depends on its ability to generate liquidity to meet financial obligations, including interest payments on a senior secured note held by PCCU. Safe Harbor's share price closed at $2.22 on Friday, giving it a market cap just under $6 million. PCCU’s 38.8% stake, once valued at $117.4 million during the 2022 spinoff, was worth approximately $2.3 million—down from $3.2 million earlier this month and $11.4 million in July 2023, the report states. In the event of bankruptcy, PCCU's equity stake could be wiped out, though its position as a creditor may allow for some recovery. After the 2022 spinoff, PCCU members were initially promised $56.9 million from Safe Harbor, which was later converted to a $14.5 million senior secured note. As of April 1, $11 million remained outstanding, the report cites. A March agreement extended the principal repayment by two years and allowed for interest-only payments during that period, freeing up $6 million in cash, according to the company. Safe Harbor also disclosed "material weaknesses" in its internal financial controls, which were identified in an April 1 notice to the SEC and detailed in the 10-K. These included errors in monthly revenue recognition involving PCCU, valuation of complex financial instruments, and the prior misjudgment of the company's going concern outlook. While management reported correcting those weaknesses, the filing did not indicate whether past financial reports were affected. About Safe Harbor Financial Services Safe Harbor Financial Services is a cannabis lending firm. SAFE PRO: Net Loss Rises to $7.43M in 2024, Revenue Grows to $2.17M ------------------------------------------------------------------- Safe Pro Group Inc. reported a net loss of $7.43 million for 2024, deepening from a $6.31 million net loss the prior year, according to its latest 10-K filing with the Securities and Exchange Commission. Revenue rose to $2.17 million in 2024 from $917,720 a year ago, but Safe Pro, which has yet to turn a profit since inception, continues to post significant losses as it generates limited income from its products and services. The Company used $4,095,434 in cash for operating activities during the year ended Dec. 31, 2024. As of Dec. 31, 2024, it reported an accumulated deficit of $14,250,751 and working capital of $1,856,203. Total assets stood at $4.95 million, with total liabilities of $1.08 million and total shareholders' equity of $3.87 million. Cash on hand amounted to $1,970,719. Current assets as of Dec. 31, 2024, increased by $1,476,221, or 115.9%, reaching $2,750,129, compared with $1,273,908 at the end of 2023. The increase was primarily driven by a $1,267,351 gain in cash and a $265,611 rise in prepaid expenses and other current assets, partially offset by a $39,643 decrease in accounts receivable and a $17,098 reduction in inventory. In its report dated March 28, 2025, the Company's auditor, RBSM LLP, issued a "going concern" qualification citing that the Company has an accumulated deficit and recurring losses. These conditions raise substantial doubt about the Company's ability to continue as a going concern. "We do not have sufficient existing cash and cash equivalents, without giving effect to the proceeds from our IPO, to support operations for at least one year following the date our consolidated financial statements," the Company stated. "If we are unable to obtain sufficient funding, we could be forced to delay the implementation of our business plan, and our financial condition and results of operations will be materially and adversely affected, and we may be unable to continue as a going concern. Future financial statements may continue to disclose substantial doubt about our ability to continue as a going concern. If we seek additional financing to fund our business activities in the future and there remains substantial doubt about our ability to continue as a going concern, investors or other financing sources may be unwilling to provide additional funding to us on commercially reasonable terms or at all." The complete text of the Form 10-K is available for free at: https://www.sec.gov/Archives/edgar/data/2011208/000164117225001383/form10-k.htm About Safe Pro Headquartered in Aventura, Florida, Safe Pro Group (www.safeprogroup.com) develops security and protection solutions, focusing on artificial intelligence-driven drone data analysis, mission-critical uncrewed services, and ballistic protective equipment. The Company operates across government, enterprise, and NGO sectors, offering AI and machine learning software, personal protective gear, and aerial services. Its leadership comprises professionals from both public and private sectors. SANUWAVE HEALTH: Subsidiary Signs 5-Year Lease for Eden Prairie HQ ------------------------------------------------------------------ Sanuwave Health, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that effective March 27, 2025, Sanuwave, Inc., a wholly owned subsidiary of the Company, entered into a lease for the Company's new headquarters in Eden Prairie, Minnesota. Pursuant to the Lease, Sanuwave Inc. is obligated to pay monthly base rent of $21,687.25, which increases annually by 3.5%, plus its pro rata share of property taxes and operating expenses. The Lease has a term of 60 months and includes one option for the tenant to extend the term for a period of five years. About SANUWAVE Headquartered in Suwanee, Georgia, SANUWAVE Health, Inc. (OTCQB:SNWV) -- http://www.SANUWAVE.com-- is an ultrasound and shock wave technology company using patented systems of noninvasive, high-energy, acoustic shock waves or low intensity and non-contact ultrasound for regenerative medicine and other applications. The Company's focus is regenerative medicine utilizing noninvasive, acoustic shock waves or ultrasound to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, musculoskeletal, and vascular structures. The Company's two primary systems are UltraMIST and PACE. UltraMIST and PACE are the only two Food and Drug Administration (FDA) approved directed energy systems for wound healing. New York, NY-based Marcum LLP, the Company's auditor since 2018, issued a "going concern" qualification in its report dated March 20, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has incurred recurring losses, has negative working capital, and needs to refinance its debt to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. SCHULTE INC: Gets OK to Use $216K in Cash Collateral Until July 31 ------------------------------------------------------------------ Schulte, Inc. received another extension from the U.S. Bankruptcy Court for the District of New Hampshire to use cash collateral. The court order authorized the Debtor to use up to $216,187 in cash collateral for the period from May 1 to July 31 to pay its expenses. As protection for the Debtor's use of their cash collateral, the U.S. Small Business Administration and other secured creditors were granted replacement liens on the Debtor's post-petition property. As additional protection, the SBA will receive a monthly payment of $811. The next hearing is scheduled for July 23. SBA has a first priority lien on "ordinary cash collateral," which is cash generated through regular business operations. Other creditors have valid, perfected security interests in specific equipment, which include Caterpillar Financial Services Corporation, First Citizens Bank & Trust., Mitsubishi HC Capital America, Inc., Volvo Financial Services, and Wells Fargo. About Schulte Inc. Schulte Inc., a company in Newton, N.H., filed its voluntary Chapter 11 petition (Bankr. D.N.H. Case No. 24-10225) on April 8, 2024, with $1 million to $10 million in both assets and liabilities. Judge Bruce A. Harwood oversees the case. The Debtor is represented by William S. Gannon, Esq. atWilliam S. Gannon, PLLC. SCILEX HOLDING: Completes 1-for-35 Reverse Stock Split ------------------------------------------------------ Scilex Holding Company executed a reverse stock split on April 15, 2025, following its April 11 announcement. The 1-for-35 share consolidation was carried out to help the Company regain compliance with Nasdaq Capital Market's minimum bid price requirement of $1.00 per share for continued listing. Following the reverse stock split, Scilex's common stock continued to trade on The Nasdaq Capital Market under the symbol "SCLX" with the new CUSIP number, 80880W 205. The reverse stock split did not change the authorized number of shares of Scilex's common stock. No fractional shares were issued in connection with the reverse stock split, and stockholders who would otherwise be entitled to receive a fractional share in connection with the reverse stock split instead received a cash payment in lieu thereof equal to such fraction multiplied by the closing sales price of Scilex's common stock as reported on The Nasdaq Capital Market on April 14, 2025. In addition, the reverse stock split applied to Scilex's common stock issuable (or deemed issuable, as applicable) upon the exercise or conversion, as applicable, of certain of Scilex's outstanding warrants, shares of Series A Preferred Stock, convertible notes and stock options, with proportionate adjustments to be made to the exercise and conversion prices thereof, in each case in accordance with the respective terms of such warrants, shares of Series A Preferred Stock, convertible notes and stock options (and the applicable equity incentive plans). The reverse stock split reduced the number of issued and outstanding shares of Scilex's common stock from approximately 243 million to approximately 6.9 million. At Scilex's special meeting of stockholders held on March 19, 2025, Scilex's stockholders approved the reverse stock split in connection with Scilex's common stock and gave Scilex's board of directors discretionary authority to select a ratio for the reverse stock split ranging from 1-for-14 shares to 1-for-50 shares. Scilex's board of directors approved the reverse stock split at a ratio of 1-for-35 on April 3, 2025. Continental Stock Transfer & Trust Company acted as the exchange agent and paying agent for the reverse stock split. About Scilex Holding Company Palo Alto, Calif.-based Scilex Holding Company -- www.scilexholding.com -- is an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain and, following the formation of its proposed joint venture with IPMC Company, neurodegenerative and cardiometabolic disease. Scilex targets indications with high unmet needs and large market opportunities with non-opioid therapies for the treatment of patients with acute and chronic pain and is dedicated to advancing and improving patient outcomes. Scilex's commercial products include: (i) ZTlido (lidocaine topical system) 1.8%, a prescription lidocaine topical product approved by the U.S. Food and Drug Administration for the relief of neuropathic pain associated with postherpetic neuralgia, which is a form of post-shingles nerve pain; (ii) ELYXYB, a potential first-line treatment and the only FDA-approved, ready-to-use oral solution for the acute treatment of migraine, with or without aura, in adults; and (iii) Gloperba, the first and only liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. In its report dated March 31, 2025, the Company's auditor, BMP LLP, issued a "going concern" qualification, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Scilex posted a net loss of $72.81 million in 2024, compared to $114.33 million in 2023. As of Dec. 31, 2024, the Company had $92.95 million in total assets, $285.59 million in total liabilities, and a total stockholders' deficit of $192.64 million. As of Dec. 31, 2024, it had cash and cash equivalents of approximately $3.3 million. SCILEX HOLDING: Unit's Merger Deal Amended as Denali Moves to OTC ----------------------------------------------------------------- Scilex Holding Company's subsidiary Semnur Pharmaceuticals Inc. amended its merger agreement with Denali Capital Acquisition Corp., a Cayman Islands exempted company ("Parent"), according to a recent SEC filing with the Securities and Exchange Commission. The amendment, dated April 16, 2025, modifies the original merger pact signed on Aug. 30, 2024, and also involves Denali Merger Sub Inc., a wholly owned subsidiary of Denali incorporated in Delaware. The Amendment revises the Merger Agreement to, among other things, (i) modify certain covenants of the parties to address the de-listing of the Parent Units, Class A Shares and Parent Warrants from the Nasdaq Capital Market and subsequent quotation on the OTC Markets Group, Inc., (ii) require Parent to amend its organizational documents to extend the period of time within which Parent can complete a business combination to Dec. 11, 2025 or such other date that is mutually agreed to by Semnur and Denali, and (iii) extend the Outside Date to Sept. 30, 2025; provided that if an Extension Amendment (as defined in the Merger Agreement, as amended by the Amendment) shall be in effect, the Outside Date shall be the Extension Date. About Scilex Holding Company Palo Alto, Calif.-based Scilex Holding Company -- www.scilexholding.com -- is an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain and, following the formation of its proposed joint venture with IPMC Company, neurodegenerative and cardiometabolic disease. Scilex targets indications with high unmet needs and large market opportunities with non-opioid therapies for the treatment of patients with acute and chronic pain and is dedicated to advancing and improving patient outcomes. Scilex's commercial products include: (i) ZTlido (lidocaine topical system) 1.8%, a prescription lidocaine topical product approved by the U.S. Food and Drug Administration for the relief of neuropathic pain associated with postherpetic neuralgia, which is a form of post-shingles nerve pain; (ii) ELYXYB, a potential first-line treatment and the only FDA-approved, ready-to-use oral solution for the acute treatment of migraine, with or without aura, in adults; and (iii) Gloperba, the first and only liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. In its report dated March 31, 2025, the Company's auditor, BPM LLP, issued a "going concern" qualification citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Since its inception, the Company has incurred significant net losses, with net losses of $72.8 million and $114.3 million for the years ended Dec. 31, 2024 and 2023, respectively. As of Dec. 31, 2024 and 2023, the Company had an accumulated deficit of approximately $563.1 million and $490.2 million, respectively. For the foreseeable future, it expects to continue to incur significant expenses related to the commercialization of its products. SERTA SIMMONS: Court Narrows Claims Brooks Discrimination Suit -------------------------------------------------------------- Judge John A. Ross of the United States District Court for the Eastern District of Missouri will grant in part and deny in part Serta Simmons Bedding, LLC's motion to dismiss the employment discrimination case captioned as JOSHUA BROOKS, Plaintiff, vs. SERTA SIMMONS BEDDING, LLC, Defendant, Case No. 4:22-CV-01203-JAR (E.D. Mo.). Plaintiff Joshua Brooks began working for Defendant Serta in November 2014 and performed successfully without incident until the time relevant to this case. In March 2020, COVID-19 was declared a global pandemic, overwhelming hospitals and disrupting businesses worldwide. The first vaccine was approved in December 2020, and many employers adopted vaccine mandates in an effort to restore operations while ensuring worker safety. Defendant Serta instituted a vaccine mandate for its employees around that time. On Oct. 7, 2021, Plaintiff Brooks submitted a request for accommodation exempting him from the vaccine mandate based on his Christian religious belief that receiving the vaccine would make him complicit in abortion. After a month with no response, on Nov. 1, Brooks inquired again and was granted an "accommodation" in the form of unpaid administrative leave effective Nov. 28. Brooks' position was posted as a vacancy and later filled. On Dec. 20, 2021, Brooks filed a charge of discrimination with the Missouri Commission on Human Rights and the Equal Employment Opportunity Commission claiming religious discrimination. On June 21, 2022, Brooks filed an amended charge adding a claim of retaliation. On Sept. 19, he received a right-to-sue letter from the MCHR. On Oct. 17, he filed his original petition in state court asserting claims of religious discrimination in the form of disparate treatment and failure to accommodate and a separate claim of retaliation, all under the Missouri Human Rights Act, Mo. Rev. Stat. Sec. 213.000 et seq. On Nov. 10, Serta removed the case to this Court and shortly thereafter filed a motion to dismiss, which was mooted by Brooks' filing of the operative amended complaint on Nov. 18 asserting claims of failure to accommodate (count I) and retaliation (count II). In each count, Brooks asserts that he was actually or constructively discharged in that he was removed from the payroll without benefits and later replaced, forcing him to find work elsewhere. In January 2023, the case was stayed due to Serta's Chapter 11 bankruptcy. The stay was lifted in December 2024, and Serta filed the present motion to dismiss on Jan. 7, 2025. In support of its motion, Serta first contends that Brooks failed to exhaust administrative remedies in that his MCHR charges did not allege constructive discharge and did not preserve a colorable claim of retaliation. On the merits, Serta argues that: (1) Brooks' pleadings are insufficient as to whether other unvaccinated employees were similarly situated; (2) a request for accommodation is not a protected activity under Missouri law, and there was no retaliatory event after he filed his initial MCHR charge; and (3) Brooks fails to plead facts demonstrating a constructive discharge. In Count I of his complaint, Brooks pleads that Serta refused to grant him the reasonable accommodation of working remotely without the vaccine, as his colleagues were permitted to do, and instead Serta constructively discharged him by placing him on unpaid administrative leave without benefits. In its motion to dismiss on this count, Serta argues that, to the extent Brooks alleges that he was discharged, he failed to exhaust his administrative remedies by characterizing the action as such in his MCHR charges. The Court does not agree. Construing his charges liberally as the standard requires, the Court finds that Brooks has exhausted his administrative remedies on Count I. Consequently, Serta's motion to dismiss Count I will be denied. In Count II of the complaint, Brooks pleads that Serta retaliated against him for requesting a religious accommodation and later filing his first MCHR charge. In its motion to dismiss on this count, Serta contends that Brooks failed to exhaust this claim with respect to his request for accommodation because his second charge mentioned only his first one as the basis for retaliation and not his initial request. Reading the two charges together, the Court finds them sufficient to exhaust Brooks' claim on this count. On the merits, however, Brooks fails to state a claim of retaliation under Missouri law. According to the Court, Serta's response to Brooks' request -- placing him on leave -- is not a cognizable act of retaliation. Consequently, Count II fails to state a claim and will be dismissed. A copy of the Court's decision dated April 14, 2025, is available at https://urlcurt.com/u?l=zlrDOG from PacerMonitor.com. About Serta Simmons Bedding Serta Simmons Bedding, together with its non-debtor affiliates, are manufacturers and marketers of bedding products in North America, operating various bedding manufacturing facilities across the United States and Canada. Serta Simmons Bedding, LLC, filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90020) on Jan. 23, 2023. The petitions were signed by John Linker, chief financial officer, treasurer and assistant secretary. At the time of filing, the Debtors estimated $1 billion to $10 billion in both assets and liabilities. During the Chapter 11 process, Weil, Gotshal & Manges LLP served as SSB's legal counsel, Evercore Group L.L.C. served as SSB's investment banker and FTI Consulting, Inc., served as SSB's financial and restructuring advisor. Epiq Corporate Restructuring, LLC, is the claims and noticing agent. Gibson, Dunn & Crutcher LLP served as legal counsel, and Centerview Partners served as financial advisor and investment banker, to an ad hoc group of SSB's priority lenders. SHILO INN: Order to Appoint Receiver Affirmed in Cathay Bank Suit ----------------------------------------------------------------- In the appealed case styled as CATHAY BANK, a California banking corporation, successor by merger to Far East National Bank, Plaintiff-Respondent,v. Mark S. HEMSTREET, an individual; Shilo Management Corporation, an Oregon corporation; and Cascade Hotel Corporation, an Oregon corporation, Defendants-Appellants, and DOES 1 THROUGH 50, inclusive, Defendants, No. A181767 (Or. Ct. App.), Judges James C. Egan, Robyn Aoyagi and Anna M. Joyce of the Oregon Court of Appeals affirmed the order of the Multnomah County Circuit Court granting Cathay Bank's motion for appointment of a receiver over the judgment debtors and over Mark S. Hemstreet's membership interests in the non-debtor Shilo Inn LLCs. Hemstreet founded Shilo Inns in 1974, which, at its peak, had 47 hotels. Many of those hotels closed during the COVID-19 pandemic. Hemstreet owns membership interests in the 12 remaining Shilo Inn limited liability companies (LLCs), and five of those LLCs were in Chapter 11 bankruptcy proceedings. He is also a shareholder of Shilo Management Corporation (SMC), which provides management services to the Shilo Inn LLCs. Due to the Shilo Inns' bankruptcy, SMC has not been paid for management fees for several years. Hemstreet is also a shareholder of Cascade Hotel Corporation (CHC), which has been dormant for several years. Plaintiff is a judgment creditor of Hemstreet, having loaned money to Hemstreet in 2007, which SMC and CHC guaranteed. The loan was initially scheduled to mature in November 2009, and it became the subject of several forbearance agreements and enforcement actions. Eventually, Hemstreet defaulted on the loan, and SMC and CHC defaulted under their respective guarantees. In June 2022, the federal district court entered a judgment against Hemstreet totaling $4,543,263.76, plus interest. Plaintiff registered that judgment in Multnomah County Circuit Court in August 2022, and plaintiff began collection and enforcement proceedings against Hemstreet. On October 5, 2022, plaintiff filed a Motion for Appointment of Receiver pursuant to ORS 37.060(1)(b), (g), and (i). In that motion, plaintiff sought appointment of a receiver over the judgment debtors and over Hemstreet's membership interests in the non-debtor Shilo Inn LLCs, arguing that Hemstreet owned 100 percent of the membership interests in each of those LLCs. Along with the motion, plaintiff filed a proposed order. Hemstreet filed a response, in which he argued generally against the appointment of a receiver, pointing to the factors that federal courts consider when deciding whether to appoint a receiver, and noting the senior tax liens held by the IRS and other taxing authorities. But Hemstreet did not object to the proposed order on many of the bases that he now raises on appeal. The trial court granted the motion and entered an order appointing the receiver on June 7, 2023. The order vested the receiver with authority to possess, manage, and control the following defendants and businesses: Shilo Management Corporation (SMC); Cascade Hotel Corporation (CHC); and Hemstreet's membership interests in non-debtor Shilo Inns, stock in the non-debtor manager corporations, and membership interests in the additional LLCs. The order provided that the receiver shall have the power to exercise the authority of Hemstreet and his affiliates, including Hemstreet's wife, in connection with governance of the Hemstreet Companies. Six days later, on June 13, 2023, Hemstreet submitted objections to the order, which the court never ruled on. Hemstreet filed a notice of appeal on July 3, 2023. Hemstreet seeks to vacate the trial court's order granting plaintiff's motion for appointment of a receiver. Hemstreet presents eleven assignments of error, arguing that the trial court committed legal error and abused its discretion in its order appointing the receiver. In nine of his assignments, Hemstreet argues that the trial court legally erred in entering the order appointing receiver: the order did not contain a certificate of readiness as required by UTCR 5.100(2) (first assignment); the order included entities and individuals whom plaintiff did not include it its motion to appoint a receiver (second assignment); the order required that Hemstreet indemnify the receiver (fifth assignment); the court granted the receiver authority over Hemstreet's "affiliates" (sixth assignment); the court appointed a receiver over multiple entities based on evidence that Hemstreet, personally, was insolvent and based on evidence that only some of the ordered entities were insolvent (assignments seven to nine); the court appointed a receiver despite the appointment not being reasonably necessary to secure justice to the parties (tenth assignment); and the order did not require that the receiver's transfer or sale of property be subject to court approval (eleventh assignment). In his remaining two assignments, Hemstreet argues that the trial court abused its discretion when it granted a receivership without requiring that the receiver post a bond (third assignment) and that plaintiff post security (fourth assignment). The Appellate Judges conclude that Hemstreet failed to preserve his nine assignments that the trial court legally erred in its order appointing a receiver, and thus, they do not address the merits of those assignments. They also conclude that the trial court did not abuse its discretion when it granted the receivership without requiring that the receiver post a bond or that plaintiff post security. Accordingly, they affirm. A copy of the Court's decision dated April 16, 2025, is available at https://urlcurt.com/u?l=u3pK9i Attorneys for the Appellants: D. Zachary Hostetter, Esq. Benjamin Boyd, Esq. HOSTETTER LAW GROUP, LLP 203 E. Main St., Suite 2 Enterprise, OR 97828 Phone: (541) 426-4584 Fax: (541) 426-3281 Attorneys for the Respondent: Bruce H. Cahn, Esq. Andrew J. Geppert, Esq. Mohammed N. Workicho, Esq. BALLARD SPAHR 601 S.W. Second Avenue, Suite 2100 Portland, OR 97204 Phone: (503) 778-2100 Fax: (503) 778-2200E-mail: cahnb@ballardspahr.com gepperta@ballardspahr.com workichom@ballardspahr.com About Shilo Inn Portland/205 Shilo Inn Portland/205 LLC operates the "Shilo Inn" hotel in Portland, Ore. The business is owned by Mark S. Hemstreet. Shilo Inn Portland/205, along with several affiliates, first sought Chapter 11 protection on March 20, 2022 (Bankr. D. Ore. Lead Case No. 02-32682). Shilo Inn Portland/205's case was terminated on March 30, 2004. Hemstreet's Shilo Inn, Idaho Falls, LLC filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 20-42489) on Nov. 2, 2020. Two more Shilo Inn hotels owned by Hemstreet -- Shilo Inn, Bend, LLC, and Shilo Inn, Warrenton, LLC -- filed for Chapter 11 bankruptcy on Aug. 13, 2021 (Bankr. W.D. Wash. Case Nos. 21-41340 and 21-41341). The cases are pending and jointly administered under Case No. 21-41340. Shilo Inn Portland/205 again filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Wash. Case No. 22-41459) on Nov. 10, 2022. In the petition filed by Larry Chank, as authorized representative, Shilo Inn Portland/205 reported between $10 million and $50 million in both assets and liabilities. Judge Brian D. Lynch handles the Debtors' cases. Levene, Neale, Bender, Yoo & Golubchik, LLP and Stoel Rives, LLP serve as the Debtors' bankruptcy counsel and local counsel, respectively. SHREE AMIRTAYA: Seeks to Use $6,865 in Cash Collateral ------------------------------------------------------ Shree Amirtaya, LLC asked the U.S. Bankruptcy Court for the District of Connecticut for authority to use $6,865 in cash collateral for the period from April 1 to 30. The Debtor needs to use cash collateral to cover necessary operating expenses such as mortgage payments, real estate taxes, insurance, and property maintenance. ReadyCap Lending, LLC holds a mortgage and assignment of rents recorded in November 2021. To provide adequate protection for ReadyCap Lending's secured interest, the Debtor proposed granting replacement liens on post-petition accounts receivable and making monthly adequate protection payments, to the extent that ReadyCap's lien is valid and perfected. About Shree Amritaya Shree Amritaya, LLC is a real estate firm based in Branford, Conn., focusing on single-asset properties. It owns the property at 315-317 East Main Street, Branford, Conn., which is valued at $500,000. Shree Amritaya sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Conn. Case No. 25-30181) on February 28, 2025. In its petition, the Debtor reported total assets of $525,000 and total liabilities of $1,145,000. Joseph J. D'Agostino, Jr., Esq., at Attorney Joseph J. D'Agostino, Jr., serves as the Debtor's bankruptcy counsel. ReadyCap Lending, LLC, as lender, is represented by: Paul A. De Genaro, Esq. Benanti & Associates 350 Bedford Street, Suite 201 Stamford, CT 06901 Phone: (203) 324-9559 Facsimile: (203) 358-8582 pdegenaro@benantilaw.com STEWARD HEALTH: Plan Participants Lose Bid to Stay Turnover Order ----------------------------------------------------------------- Judge George C. Hanks, Jr. of the United States District Court for the Southern District of Texas denied the motion of the participants of the two deferred-compensation plans sponsored by Steward Health Care System, LLC and certain of its affiliates to stay the Turnover Order of the United States Bankruptcy Court for the Southern District of Texas pending appeal. Appellants are participants of both plans. After Debtors filed for relief under Chapter 11 of the Bankruptcy Code, both plans were terminated. The Debtors ultimately sought recovery of the assets of these plans, arguing in their motion ("Turnover Motion") that the assets were Debtors' property because the plans were exempt from the protections of the Employee Retirement Income Security Act. Appellants objected to the Turnover Motion and filed an adversary complaint to litigate the issue of ERISA protections. The bankruptcy court granted the Turnover Motion and shortened the automatic 14-day stay under Bankruptcy Rule 6004(h) to a 9-day stay, rendering the order effective on April 11, 2025, at 11:59 p.m. Appellants then moved for a stay of the Turnover Order pending an appeal, and the bankruptcy court denied the motion. The bankruptcy court reasoned in its denial that Appellants had not made a showing of a substantial likelihood to succeed on the merits of the appeal of the Turnover Order. The District Court holds that Appellants' motion should be denied because they have failed to establish the necessary elements to support their motion. In determining whether to issue a stay pending appeal, the District Court must consider: (1) whether the movant has made a showing of likelihood of success on the merits; (2) whether the movant has made a showing of irreparable injury if the stay is not granted; (3) whether the granting of the stay would substantially harm the other parties; and (4) whether the granting of the stay would serve the public interest. The party requesting the stay must establish each of these elements. The District Court finds that Appellants have not made a showing of irreparable injury. Accordingly, the motion must be denied. Appellants argue that -- though their injury is monetary -- it is nonetheless irreparable because Debtors will immediately spend the assets at issue and Appellants may not succeed in recovering those funds -- either due to legal obstacles or the transferees' creditworthiness. The District Court finds that the potential for Appellants to fail in recovering the assets after a successful appeal due to legal obstacles or the transferees' creditworthiness" is insufficient to demonstrate irreparable harm. By demonstrating only the mere possibility of irreparable injury, Appellants have failed to establish a crucial element supporting a stay of the bankruptcy court's order, and the District Court must deny the motion. A copy of the Court's decision is available at https://urlcurt.com/u?l=Oxi1NF from PacerMonitor.com. About Steward Health Care Steward Health Care System, LLC owns and operates the largest private physician-owned for-profit healthcare network in the U.S. Headquartered in Dallas, Texas, Steward's operations include 31 hospitals in eight states, approximately 400 facility locations, 4,500 primary and specialty care physicians, 3,600 staffed beds, and nearly 30,000 employees. Steward Health Care provides care to more than two million patients annually. Steward and 166 affiliated debtors filed Chapter 11 petitions (Bankr. S.D. Tex. Lead Case No. 24-90213) on May 6, 2024. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy counsel; McDermott Will & Emery as special corporate and regulatory counsel; Kobre & Kim LLP as special litigation counsel; AlixPartners, LLP as financial advisor and John Castellano of AlixPartners as chief restructuring officer. Lazard Freres & Co. LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc Capital Markets Inc., provide investment banking services to the Debtors. Kroll is the claims agent. Susan N. Goodman is the patient care ombudsman appointed in the Debtors' cases. TALKING ROCK: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Talking Rock Land, LLC 15075 N. Talking Rock Ranch Road Prescott, AZ 86305 Business Description: Talking Rock Land, LLC develops and manages Talking Rock, a private residential community in Prescott, Arizona. The development includes luxury homes, a golf course, and club amenities. Chapter 11 Petition Date: April 18, 2025 Court: United States Bankruptcy Court District of Arizona Case No.: 25-03438 Judge: Hon. Daniel P Collins Debtor's Counsel: Scott B. Cohen, Esq. ENGELMAN BERGER PC 2800 N. Central Avenue, Suite 1200 Phoenix, AZ 85004 Tel: 602-271-9090 E-mail: sbc@eblawyers.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $1 million to $10 million The petition was signed by Peter Burger as designated representative. A list of the Debtor's 20 largest unsecured creditors was not provided alongside the petition A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/MI6P4LA/Talking_Rock_Land_LLC__azbke-25-03438__0001.0.pdf?mcid=tGE4TAMA TRI-BOROUGH HOME: Case Summary & Two Unsecured Creditors -------------------------------------------------------- Debtor: Tri-Borough Home Care, LTD f/k/a Tri-Borough Home Care Division, LTD a/k/a Family Care Pediatric Home Care 1414 Utica Avenue Brooklyn, NY 11203 Business Description: Tri-Borough Home Care Ltd. is a licensed home care services agency based in Brooklyn, New York. The Company provides in-home health care through registered nurses, licensed practical nurses, home health aides, and personal care aides. It also offers specialized programs including pediatric nursing and Medicaid waiver services. Chapter 11 Petition Date: April 17, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-41887 Judge: Hon. Nancy Hershey Lord Debtor's Counsel: Julio E. Portilla, Esq. JULIO E. PORTILLA 380 Lexington Ave. 4th Floor New York, NY 10168 Tel: (212) 365-0292 Fax: (212) 365-4417 E-mail: jp@julioportillalaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $0 to $50,000 The petition was signed by Kenrick L. Cort as authorized representative of the Debtor. A full-text copy of the petition, which includes a list of the Debtor's two unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/TVUTRZY/Tri-Borough_Home_Care_LTD__nyebke-25-41887__0001.0.pdf?mcid=tGE4TAMA U.S.A. DAWGS: Fee Order in Double Diamond v. GTG Lawsuit Affirmed ----------------------------------------------------------------- In the appealed case styled as DOUBLE DIAMOND DISTRIBUTION, LTD., Appellant, v. GARMAN TURNER GORDON, LLP, Appellee, No. 24-1959 (9th Cir.), Judges Michael Daly Hawkins, Michael Fisher and Ryan D. Nelson of the United States Court of Appeals for the Ninth Circuit affirmed the ruling of the Ninth Circuit Bankruptcy Appellate Panel that upheld the judgment of the United States Bankruptcy Court for the District of Nevada denying Double Diamond Distribution, Ltd.'s motion to reopen under Rule 60(b). Plaintiff Double Diamond Distribution, Ltd., an affiliate of debtor U.S.A. Dawgs, Inc., agreed to pay Debtor's bankruptcy counsel, appellee Garman Turner Gordon, LLP a monthly retainer and guaranteed the payment of GTG's fees and expenses incurred in connection with the Debtor's bankruptcy case. After Debtor's assets were sold in bankruptcy, GTG applied for fees and the bankruptcy court approved the application. The bankruptcy court's fee order specified that Debtor and Double Diamond would be jointly and severally liable for payment of the fees and expenses. Double Diamond refused to pay and after avoiding collection efforts in Canada for several years, filed a motion to reopen under Rule 60(b) of the Federal Rules of Civil Procedure. The bankruptcy court denied the motion to reopen, and Double Diamond appealed to the BAP, which affirmed the bankruptcy court in a published opinion. The Circuit Judges agree with the BAP and the bankruptcy court had jurisdiction in this matter. A proceeding "arises in" a case under the Bankruptcy Code if it is an administrative matter unique to the bankruptcy process that has no independent existence outside of bankruptcy and could not be brought in another forum, but whose cause of action is not expressly rooted in the Bankruptcy Code. As the BAP explained, while guaranty agreements can and do exist outside of bankruptcy, the Engagement Agreement, including the guaranty and funding provisions therein, could not. The Engagement Agreement, which was executed by both Debtor and Double Diamond, pertained solely to the retention of Chapter 11 counsel in accordance with Secs. 327–331, and required the bankruptcy court's approval pursuant to these provisions. According to the Ninth Circuit, because Debtor lacked the ability to pay bankruptcy counsel, the bankruptcy case would not have existed without Double Diamond's agreement to fund GTG. As the BAP explained, because this employment and compensation scheme cannot exist outside of bankruptcy, the current dispute over the Fee Order "arose in" Debtor's bankruptcy case. As the bankruptcy court had jurisdiction to enter the Fee Order, the judgment was not void and there was no basis to reopen under Rule 60(b)(4), the Ninth Circuit concludes. Double Diamond also sought relief pursuant to Fed. R. Civ. P. 60(b)(6). The bankruptcy court noted that Double Diamond and its principal Steven Mann were properly served with the fee application and proposed order, that Double Diamond chose to litigate its liability in Canada instead of appealing the Fee Order, and that Double Diamond engaged Canadian counsel to oppose GTG's efforts to enforce the Fee Order in 2018, at which point it must have been aware of the contents of the Fee Order. According to the Circuit Judges, the bankruptcy court did not abuse its discretion when it concluded that there was no evidence or argument establishing extraordinary circumstances beyond Double Diamond's control that prevented it from taking timely action. A copy of the Court's decision dated April 16, 2025, is available at https://urlcurt.com/u?l=LBcKZ0 About U.S.A. Dawgs Inc. U.S.A. Dawgs Inc. -- https://www.usadawgs.com/ -- designs, manufactures, and distributes footwear. The company offers slip resistant, casual working, safety, golf, spirit, and toning shoes; sandals, flip flops, bendables, clogs, and Aussie style and cow suede boots; and socks for men, women, boys, girls, and babies. The company was founded in 2006 and is based in Las Vegas, Nevada. U.S.A. Dawgs, Inc., filed a voluntary Chapter 11 petition (Bankr. D. Nev. Case No. 18-10453) on Jan. 31, 2018. In the petition signed by Steven Mann, president and CEO, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million liabilities. The case is assigned to Judge Laurel E. Davis. The Debtor is represented by Talitha B. Gray Kozlowski, Esq. and Teresa M. Pilatowicz, Esq. of Garman Turner Gordon, LLP. U.S.A. Dawgs filed a disclosure statement to accompany its plan of reorganization dated June 5, 2018. UPTOWN WINE: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Uptown Wine Pantry Inc. 63 East 125th Street New York, NY 10035 Business Description: Uptown Wine Pantry is a self-serve liquor store located at 63 East 125th Street in New York City. Established in 2002, it offers a diverse selection of wines, liquors, and specialty items, along with convenient delivery and curbside pickup services. Chapter 11 Petition Date: April 18, 2025 Court: United States Bankruptcy Court Southern District of New York Case No.: 25-10770 Judge: Hon. Lisa G Beckerman Debtor's Counsel: Vivia L. Joseph, Esq. 229-22 Linden Boulevard Cambria Heights NY 11411 Tel: 718-977-4132 E-mail: vjoseph@att.net Total Assets: $350,000 Total Debts: $1,557,997 The petition was signed by Sean Walters as president. The Debtor failed to include a list of its 20 largest unsecured creditors with the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/IZ2XQZI/Uptown_Wine_Pantry_Inc__nysbke-25-10770__0001.0.pdf?mcid=tGE4TAMA VETCORE TECHNOLOGY: Wins Interim OK to Obtain DIP Loan ------------------------------------------------------ Vetcore Technology L.L.C. received interim approval from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to obtain post-petition financing. The Debtor needs to obtain $30,000 in debtor-in-possession financing at 7% annual interest from Dominique Higgins through a superpriority DIP loan with monthly payments of $2,596 starting May 11. The lender is the brother of Vetcore's chief executive officer. In the interim order, the court held that the request satisfies the standard established by Federal Rule of Bankruptcy Procedure 4001 of "immediate and irreparable harm to the estate" if interim relief was not granted. The request was granted on the conditions set forth in the interim order. Payment terms will be set at the final hearing. Meanwhile, the court held that currently the Debtor does not hold or possess any cash collateral and that future receivables generated by the Debtor post-petition do not constitute cash collateral. The request for use of cash collateral is therefore moot, the court held. Vetcore, a veteran-owned commercial electrical contracting business, filed for Chapter 11 on April 7, 2025, with no available cash and heavily encumbered assets. At the time of filing, the Debtor had no cash on hand and critical payroll obligations due on April 11, 2025. The Debtor needs to use funds to pay payroll, insurance, taxes, and other necessary post-petition expenses. Numerous entities have asserted or are expected to assert interests in the Debtor's assets, including: * Blanket or general liens: U.S. SBA, Zions Bancorporation (Amegy), Plexe LLC, Ocean Funding * Equipment-specific liens: De Lage Landen, North Mill Credit Trust, Ally, LeaseDirect, Oakmont, American Financial Group * Receivables/funding lines: Cedar Advance, OnDeck, Revenued, and Uptown Fund. The Debtor also owes over $5 million to the secured creditors. The next hearing is set for April 25. About Vetcore Technology L.L.C. Vetcore Technology L.L.C. is a service-disabled veteran-owned small business based in Cypress, Texas, specializing in electrical contracting, telecommunications infrastructure, and IT project management. Founded in 2017, the Company offers a wide range of services, including structured data network cabling and security system installations, serving clients across various industries, from government agencies to large corporations. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-31943) on April 7, 2025. In the petition signed by Michael Higgins, CEO, the Debtor disclosed up to $50,000 in assets and up to $10 million in liabilities. Judge Jeffrey P. Norman oversees the case. Broocks M. Wilson, Esq., at WILSON FRIERY PLLC, represents the Debtor as legal counsel. VOBEV LLC: Unsecured Creditors to Recover Up to 0.8% of Claims -------------------------------------------------------------- Vobev, LLC submitted a First Amended Combined Disclosure Statement and Chapter 11 Plan of Liquidation dated March 19, 2025. The Combined Disclosure Statement and Plan reflects settlements reached after substantial negotiations among the Debtor, the Committee, Ares, and other parties in interest. The Combined Disclosure Statement and Plan describes and proposes a liquidating chapter 11 plan. If the Plan is confirmed by the Bankruptcy Court, then upon the Effective Date: the GUC Trust Assets will be transferred to the GUC Trust and the GUC Trustee shall administer the GUC Trust and monetize and distribute the value of the GUC Trust Assets to the GUC Trust Beneficiaries as soon as practicable pursuant to the terms of the Plan and the GUC Trust Agreement. Class 4 consists of all General Unsecured Claims against the Debtor. Except to the extent that a Holder of an Allowed General Unsecured Claim has agreed to a less favorable treatment of such Claim, and only to the extent that any such Allowed General Unsecured Claim has not been paid by the Debtor prior to the Effective Date, each Holder of an Allowed General Unsecured Claim shall receive such Holder's pro rata share of 50% of the aggregate distributions made by the GUC Trust to Holders of Allowed Claims that are GUC Trust Beneficiaries under the GUC Trust Agreement. Notwithstanding anything herein to the contrary, the amount and timing of any distributions made to Holders of Allowed General Unsecured Claims shall be determined by the GUC Trustee in the GUC Trustee's sole discretion; provided, that the Trust Loan shall be paid in full in cash from any net recoveries by the GUC Trust prior to any distribution to any Holder of an Allowed General Unsecured Claim from the GUC Trust. The Debtor estimates that the aggregate amount of Allowed General Unsecured Claims, taking into account the assumption of liabilities under the Stalking Horse APA and Sale Order, payments made under the Critical Vendor Order, the Debtor's Schedules, and Claims asserted against the Estate, will be approximately $31,942,746.31. For the avoidance of doubt, the amount of the Prepetition Lenders' Deficiency Claims is not included in the approximately $31,942,746.31 estimated for General Unsecured Claims. This Class will receive a distribution of 0% to 0.8% of their allowed claims. Pursuant to the Combined Disclosure Statement and Plan, the GUC Trust Assets, including the Retained Causes of Action, will be transferred to the GUC Trust upon the establishment of the GUC Trust upon the Effective Date. The Retained Causes of Action include all Causes of Action that are or were not released, waived, extinguished, sold or transferred pursuant to the Plan, or Sale Order or otherwise in connection with the Sale Transaction. The GUC Trustee will receive $350,000 (i.e., the Wind-Down Amount) to first fund the Wind-Down Activities and $1,000,000 (i.e., the Seed Funding, inclusive of the Trust Loan) to fund the monetization of the GUC Trust Assets (other than the Wind-Down Amount) pursuant to the Combined Disclosure Statement and Plan. The Plan provides for the liquidation and distribution of all of the Debtor's remaining assets. The Plan provides for the GUC Trust to be funded initially by the Initial GUC Trust Funding Amount, which the GUC Trustee may use to evaluate, investigate, and pursue the Retained Causes of Action pursuant to the Plan and GUC Trust Agreement. Accordingly, the Debtor believes that all Plan obligations will be satisfied without the need for further reorganization of the Debtor. A full-text copy of the First Amended Combined Disclosure Statement and Liquidating Plan dated March 19, 2025 is available at https://urlcurt.com/u?l=ytweOG from Kroll Restructuring Administration LLC, claims agent. Counsel to the Debtor: Michael R. Johnson, Esq. Jeffrey W. Shields, Esq. David H. Leigh, Esq. Mel Jones-Cannon, Esq. RAY QUINNEY & NEBEKER, P.C. 36 South State Street, 14th Floor Salt Lake City, Utah 84111 Tel: (801) 532-1500 (801) 323-3363 Email: mjohnson@rqn.com Email: jshields@rqn.com Email: dleigh@rqn.com Email: mjonescannon@rqn.com -and- Eric P. Schriesheim, Esq. ROPES & GRAY LLP 191 North Wacker Drive Chicago, Illinois 60606 Tel: (312) 845-1200 Fax: (312) 845-5500 Email: eric.schriesheim@ropesgray.com - and - Gregg M. Galardi, Esq. ROPES & GRAY LLP 1211 Avenue of the Americas New York, New York 10036 Tel: (212) 596-9000 Fax: (212) 596-9090 Email: gregg.galardi@ropesgray.com About Vobev LLC Vobev LLC, a Salt Lake City-based beverage can manufacturer, sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Utah Case No. 24-26346) on Dec. 9, 2024. In its petition, the Debtor disclosed between $500 million and $1 billion in both assets and liabilities. Bankruptcy Judge Joel T. Marker handles the case. The Debtor tapped Ray Quinney & Nebeker PC as counsel, Houlihan Lokey Capital, Inc. as investment banker, and FTI Consulting, Inc. as financial advisor. Kroll Restructuring Administration LLC is the Debtor's claims and noticing agent. WHITEHORSE 401: Unsecured Creditors to Split $250K in Plan ---------------------------------------------------------- Whitehorse 401 LLC filed with the U.S. Bankruptcy Court for the Eastern District of New York a Disclosure Statement to accompany Chapter 11 Plan of Reorganization dated March 19, 2025. The Debtor's sole asset is an approximate 208,000 sq. ft. office building located at 401 Whitehorse Road, Voorhees Township, Camden County, NJ (the "Property"). The Property was constructed in 1971 and renovated in 2000. The Debtor acquired the Property in or about January 2017 pursuant to a purchase and sale agreement dated August 30, 2016 between the Debtor, as purchaser and LSREF2 OREO (Direct), LLC, as seller. In order to fund the purchase, the Debtor borrowed $12,950,000 from LSTAR Capital Finance II, Inc., which upon information and belief, was an affiliate of the seller (the "LSTAR Loan"). The Debtor believes the fair market value of the Property as of the Confirmation Date is approximately $5 million, which is based upon a recent appraisal. Wilmington Trust obtained an appraisal in June 2023 valuing the Property at $5,100,000.00. If the Debtor and Wilmington Trust are unable to agree upon value of the Property, the Bankruptcy Court will determine the value at or just prior to the Confirmation Hearing. Class 3 consists of the holders of General Unsecured Claims. These Claims include trade Creditors, Comcast's Claim arising under the Comcast Lease as well as Wilmington Trust's Deficiency Claim. The Debtor believes the total Allowed Class 3 Claims are approximately $10,000,000.00 inclusive of Wilmington Trust's Deficiency Claim. Class 3 is impaired and entitled to vote for or against the Plan. The Plan provides all holders of Allowed Class 3 Unsecured Claims (including any Deficiency Claim), shall be paid their Pro Rata share of $250,000.00 on the Effective Date in full and complete satisfaction and discharge of such Claims. Class 4 consists of Building Solar's Unsecured Claim based upon the Debtor's rejection of the Building Solar Lease. The Debtor estimates Building Solar's Claim as a result of the Debtor's rejection of the Building Solar Lease is approximately $12 million. The Plan provides that notwithstanding the provisions contained in the Building Solar Lease which states Building Solar is the owner of all solar equipment installed on the roof at the Property, on the Effective Date, the Building Solar and the Reorganized Debtor shall enter into a joint venture agreement (the "Solar JV Agreement") under which Building Solar shall contribute all right, title, and interest in the solar energy equipment to a newly formed limited liability company, SolarCo LLC (the "Solar JV"). The Reorganized Debtor shall contribute roof access rights and operational support necessary for the continued operation of the solar equipment. The Solar JV shall assume responsibility for the operation and maintenance of the solar facility and all agreements for the sale of electricity generated by the equipment. The Solar JV shall distribute fifty percent of net revenues from the sale of electricity and associated incentives (including any state or federal renewable energy credits) to Building Solar and fifty percent to the Reorganized Debtor. The Plan provides each Equity Interest Holder shall retain its membership interest in the Reorganized Debtor in the same percentage set forth in the Amended Operating Agreement on condition that each Equity Interest Holder makes a payment of their Pro Rata share of the Plan Contribution. In the event any Equity Interest Holder declines or is unable to make their Pro Rata Share of the Plan Contribution, such Equity Interest Holders' membership interest shall be cancelled and terminated on the Effective Date and allocated among the Equity Interest Holders which make the Plan Contribution. The Debtor anticipates funding the Plan from the Plan Contribution. A full-text copy of the Disclosure Statement dated March 19, 2025 is available at https://urlcurt.com/u?l=8SvdvO from PacerMonitor.com at no charge. Proposed Attorneys for the Debtor: Scott S. Markowitz, Esq. TARTER KRINSKY & DROGIN LLP 1350 Broadway 11th Floor New York, NY 10018 Tel: (212) 216-8000 E-mail: smarkowitz@tarterkrinsky.com About Whitehorse 401 LLC Whitehorse 401 holds the fee simple ownership of the property situated at 401 White Horse Road, Voorhees, NJ 08043, which is valued at an estimated $5.1 million. Whitehorse 401 LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-40925) on February 25, 2025 listing $5,101,722 in assets and $15,371,903 in liabilities. The petition was signed by David Goldwasser as VP of Restructuring. Judge Elizabeth S Stong presides over the case. Scott Markowitz, Esq. at Tarter Krinsky & Drogin LLP represents the Debtor as counsel. WOLYNIEC CONSTRUCTION: Hires Cunningham Chernicoff as Counsel ------------------------------------------------------------- Wolyniec Construction, Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of Pennsylvania to employ Cunningham, Chernicoff & Warshawsky, P.C., as counsel. Cunningham, Chernicoff & Warshawsky, P.C. as counsel. The firm will provide these services: a. give the Debtor legal advice regarding its powers and duties as Debtor-in-Possession in the continued operation of its business and management of its property; b. prepare and file on behalf of the Debtor, as Debtor-in-Possession, the original Petition and Schedules, and all necessary applications, complaints, answers, orders, reports and other legal papers; and c. perform all other legal services for the Debtor, as Debtor-in-Possession, which may be necessary. The firm will be paid at these rates: Robert E. Chernicoff $450 per hour Partners $400 to $450 per hour Associate Attorneys $225 to $350 per hour Paralegals $100 to $150 per hour The Debtor paid the firm a retainer in the amount of $17,820. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Robert E. Chernicoff, Esq., a partner at Cunningham, Chernicoff & Warshawsky, P.C., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Robert E. Chernicoff, Esq. Cunningham, Chernicoff & Warshawsky, P.C. 2320 North Second Street P. O. Box 60457 Harrisburg, PA 17106-0457 Tel: (717) 238-6570 About Wolyniec Construction, Inc. Established in 1961, Wolyniec Construction, Inc. is a general contracting firm based in Williamsport, Pa. It specializes in both residential and commercial concrete construction, offering services such as driveways, curbs, walkways, stairs, ponds, streetscaping, parking lots, concrete repair, and resurfacing. Wolyniec sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Pa. Case No. 25-00881) on March 31, 2025, listing up to $10 million in both assets and liabilities. Steve Schenck, president of Wolyniec, signed the petition. Robert E. Chernicoff, Esq., at Cunningham, Chernicoff & Warshawsky, P.C., represents the Debtor as legal counsel. YOUTHFUL SOLUTIONS: Hires Frank B. Lyon as Legal Counsel -------------------------------------------------------- Youthful Solutions, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ The Law Offices of Frank B. Lyon as counsel. The firm will render these services: a. give the Debtor legal advice with respect to its powers and duties as Debtor-in-Possession in the continued operation of its business and management of its property; b. advise the Debtor of its responsibilities under the Bankruptcy Code and assist with such; c. amend the voluntary petition and other paperwork necessary to complete this proceeding; d. assist the Debtor in preparing and filing the required Schedules, Statement of Affairs, Monthly Financial Reports, the Initial Debtor Report and other documents required by the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the Local Rules of this Court and the administrative procedures of the Office of the United States Trustee; e. represent the Debtor in connection with adversary proceedings and other contested and uncontested matters, both in this Court and in other courts of competent jurisdiction, concerning any and all matters related to these bankruptcy proceedings and the financial affairs of the Debtor, including, but not limited to, litigation affecting property of the Estate, suits to avoid or determine lien rights or other property interests of creditors and other parties in interest, objections to disputed claims, motions to assume or reject leases and other executory contracts, motions for relief from the automatic stay and motions concerning the discovery of documents and other information relating to any of the foregoing; f. represent the Debtor in the negotiation and documentation of any sales or refinancing of property of the estate, and in obtaining the necessary approvals of such sales or refinancing by this Court; and g. assist the Debtor in the formulation of a plan of reorganization and disclosure statement, and in taking the necessary steps in this Court to obtain approval of such disclosure statement and confirmation of such plan of reorganization. The firm will be paid at these rates: Frank B. Lyon $525 per hour Kimberly Nash $300 per hour Legal Assistants $115 to 205 per hour Pre-petition, the Debtor paid the firm the sum of $36,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Frank B. Lyon, Esq., a partner at The Law Offices of Frank B. Lyon, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Frank B. Lyon, Esq. The Law Offices of Frank B. Lyon 3800 North Lamar Boulevard, Suite 200 Austin, TX 78756 Tel: (512) 345-8964 Fax: (512) 647-0047 Email: frank@franklyon.com About Youthful Solutions, LLC Youthful Solutions, LLC operates a med spa offering services such as weight management, Botox, and hormone therapy. Youthful Solutions sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-10319-smr) on March 10, 2025, listing up to $500,000 in assets and up to $10 million in liabilities. Wesley Gene Markum, chief executive officer of Youthful Solutions, signed the petition. Judge Shad Robinson oversees the case. The Debtor is represented by Frank B. Lyon, Esq., at The Law Offices of Frank B. Lyon. YOUTHFUL SOLUTIONS: Hires Wellness Capital as Accountant -------------------------------------------------------- Youthful Solutions, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ Wellness Capital Management as accountant. The firm's services include: a. Monthly bookkeeping services; b. Monthly accounting and tax services; and c. Financial consulting, as needed). The firm will be paid at the rate of $62.50 to $100 per hour. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Monte Zwang, principal at Wellness Capital, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Monte Zwang Wellness Capital Management 16500 NE 28th Street Bellevue, WA 98008 Tel: (425) 497-8231 Email: monte@WellnessCapital.com About Youthful Solutions, LLC Youthful Solutions, LLC operates a med spa offering services such as weight management, Botox, and hormone therapy. Youthful Solutions sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-10319-smr) on March 10, 2025, listing up to $500,000 in assets and up to $10 million in liabilities. Wesley Gene Markum, chief executive officer of Youthful Solutions, signed the petition. Judge Shad Robinson oversees the case. The Debtor is represented by: Frank B. Lyon, Esq. P.O. Box 50210 Austin, TX 78763-0210 Tel: (512) 345-8964 Email: frank@franklyon.com ZIPS CAR WASH: Secures Court Approval for Restructuring Plan ------------------------------------------------------------ Randi Love of Bloomberg Law reports that Zips Car Wash LLC has received bankruptcy court approval for its reorganization plan, backed by its junior creditors and lenders. On Friday, April 18, 2025, Judge Michelle V. Larson of the U.S. Bankruptcy Court for the Northern District of Texas signed off on the plan, which transfers ownership of Zips to a group of lenders and eliminates millions in existing debt. The company's exit from bankruptcy follows negotiations with key creditors, including HPS Investment Partners, PennantPark Investment Corp., and Brightwood Capital Advisors. Zips also pursued rent relief from landlords to help navigate a liquidity crunch. About Zips Car Wash, LLC Zips Car Wash LLC and affiliates are among the largest privately owned express car wash operators in the U.S., offering advanced car wash services using cutting-edge chemistry like Ultra HD Glaze and Graphene-Ceramic Fusion X to deliver superior results, including glossy tires, streak-free windows, and a well-protected paint job. Founded in 2004 with just two locations in rural Arkansas, the Debtors have expanded significantly through strategic acquisitions, now operating over 260 locations across 23 states. Headquartered in Plano, Texas, the Debtors run their businesses under the Zips, Jet Brite, and Rocket Express brands and serve their customers through two core revenue channels: a traditional pay-per-wash format and Zips Unlimited, their flagship monthly subscription program with over 600,000 members. Zips Car Wash LLC and affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80069) on Feb. 5, 2025. In its petition, the Debtor reports estimated assets between $500 million and $1 billion and estimated liabilities between $1 billion and $10 billion. Honorable Bankruptcy Judge Michelle V. Larson handles the case. The Debtors' local bankruptcy counsel is Jason S. Brookner, Esq., Aaron M. Kaufman, Esq., and Amber M. Carson, Esq., at Gray Reed, Dallas, Texas. The Debtors' general bankruptcy counsel is Joshua A. Sussberg, Esq., and Ross J. Fiedler, Esq., at Kirkland & Ellis LLP, in New York, and Lindsey Blumenthal, Esq., at Kirkland & Ellis LLP, Chicago, Illinois. The Debtors' investment banker is Evercore Group LLC. The Debtors' financial advisor is Alixpartners LLP. The Debtors' Noticing & Claims Agent is Kroll Restructuring Administration LLC. The Debtors' Real Estate Consultant & Advisor is Hilco Real Estate LLC. The Debtors' tax advisor is PWC US TAX LLP. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. 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