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250806.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, August 6, 2025, Vol. 29, No. 217 Headlines 100 PERCENT CHIROPRACTIC: Leon Jones Named Subchapter V Trustee 418RE – ONE: Gets Interim OK to Use Cash Collateral 75 ESSEX CORNER: Seeks to Tap Westerman Ball as Bankruptcy Counsel AGDP HOLDING: Case Summary & 30 Largest Unsecured Creditors AIRX LLC: Gets Extension to Access Cash Collateral AKIN MEARS: Court Denies Personal Seat License Sale to K. Steinberg APL CARGO: Taps Don Smock Auction Company as Appraiser AQUA SPAS: Gets Interim OK to Use Cash Collateral ARCHANGEL DISCIPLINES: Aleida Molina Named Subchapter V Trustee ARORA INVESTMENTS: Taps Richman & Richman as Bankruptcy Counsel ASTRO ACQUISITION: S&P Assigns 'B' ICR, Outlook Stable ATS CORP: Moody's Alters Outlook on 'Ba3' CFR to Stable AZ 175TH: Seeks to Hire Morrison-Tenenbaum as Bankruptcy Counsel AZUL SA: Committee Hires Alton Aviation as Financial Advisor AZUL SA: Committee Hires Alvarez & Marsal as Financial Advisor AZUL SA: Committee Hires Stocche Forbes as Brazilian Counsel AZUL SA: Committee Hires Willkie Farr & Gallagher LLP as Counsel AZUL SA: Committee Taps Houlihan Lokey as Investment Banker AZUL SA: Sept. 15, 2025 Claims Filing Deadline Set B&W INC: Scott Seidel Named Subchapter V Trustee BASIS TEXAS: Moody's Rates New $175.5MM Education Bonds 'Ba2' BEAR STEARNS 2007-1: Moody's Raises Rating on Cl. M-1 Certs to Ca BEELINE HOLDINGS: CEO Holds 44.7% Stake BERRY CORP: Moody's Withdraws 'B3' Corporate Family Rating CABELL HUNTINGTON: Moody's Lowers Revenue Bond Rating to Ba1 CAPITOL RADIOLOGY: Hires Johnson Law Group as Legal Counsel CINEMEX HOLDINGS: Taps A&G Realty as Real Estate Consultant CITI CONNECT: Plan Exclusivity Period Extended to Oct. 25, 2025 CLAIRE'S STORES: Skips June, July Interest Payments CLEANBAY RENEWABLES: Aug. 20, 2025 Public Sale Auction Set COLOSSUS ACQUIRECO: Moody's Affirms Ba1 Rating on Secured Term Loan COMPAC USA: Taps Guillermo Roca as Ordinary Course Professional CONFLUENCE CORP: Seeks to Hire Choi & Ito as Bankruptcy Counsel CONTRACT MANAGED: Gets Extension to Access Cash Collateral CORE F&B: Hires Quilling Selander Lownds as Bankruptcy Counsel COZY HARBOR: Taps Opus Consulting Partners as Financial Advisor CUSTOM CONCRETE: Seeks to Use Cash Collateral DALLAS PARTY: Seeks to Hire Hayward PLLC as Bankruptcy Counsel DE'NSITE INC: Janice Seyedin Named Subchapter V Trustee DESAI HOLDINGS: Seeks to Hire Havkin & Shrago as Legal Counsel DOCKSIDE AT VENTURA: Aaron Cohen Named Subchapter V Trustee DOUBLE T STEEL: Melissa Haselden Named Subchapter V Trustee DOUBLE T: Gets Interim OK to Use Cash Collateral Until Aug. 27 DOUBLESHOT HOLDINGS: Taps Bleakley Bavol Denman Grace as Attorney EISNER BROS: Seeks to Tap Westerman Ball as Bankruptcy Counsel EMBER DRIVE CV2021: Case Summary & One Unsecured Creditor EVALINA LLC: Michael Markham Named Subchapter V Trustee EYM CAFE: Case Summary & 20 Largest Unsecured Creditors FALCON CONLEY CV20 LLC: Case Summary & Six Unsecured Creditors FALCON CONLEY CV20: Case Summary & One Unsecured Creditor FISCHER AG: Steven Wallace Named Subchapter V Trustee FOREST GOOD: Court Extends Cash Collateral Access to Aug. 31 FRESE INDUSTRIES: Beverly Brister Named Subchapter V Trustee FUTURA ENTERPRISES: Seeks to Hire DeMarco Mitchell PLLC as Counsel GRDN HOSPITALITY: Gets Interim OK to Use Cash Collateral GYLMAR DEVELOPMENTS: Carol Fox Named Subchapter V Trustee HEADWAY WORKFORCE: Plan Exclusivity Period Extended to Oct. 2, 2025 HEARTLAND DENTAL: Moody's Alters Outlook on 'B3' CFR to Positive HEAVENLY HOGS: Amanda Stofan Named Subchapter V Trustee HERITAGE GRILLE: Court Extends Cash Collateral Access to Aug. 31 HILARY HAMANN: Court Dismisses Chapter 11 Case with Prejudice HYPERION MATERIALS: Moody's Lowers CFR to 'B3', Outlook Stable I V SUPPORT: Mark Sharf Named Subchapter V Trustee IBIO INC: Gets Nasdaq Notice for Non-Compliance With $1 Bid Rule IDEANOMICS INC: Seeks to Extend Plan Exclusivity to Sept. 30, 2025 INTEGRITY REAL ESTATE: Trustee Taps Annette Jarvis as Examiner INVESTMENT BUILDERS: Jody Corrales Named Subchapter V Trustee IR4C INC: Court Extends Cash Collateral Access to Sept. 11 JACKSON HOSPITAL: Plan Exclusivity Period Extended to October 1 JAMANA LLC: Alexandra Garrett Named Subchapter V Trustee JETBLUE AIRWAYS: Fitch Lowers LongTerm IDR to B-, Outlook Negative JOSEPH MOUNTAIN: Gets Interim OK to Use Cash Collateral JP MORGAN 2025-HE2: Fitch Assigns Bsf Final Rating on Cl. B-2 Certs JUXTAPOSE HOSPITALITY: Claims to be Paid from Future Income KALEIDOSCOPE SCHOOL: Gets Final OK to Use Cash Collateral KBS REIT: Five Directors Fail Majority Vote, Stay as Holdovers KDZ REALTY: Peter Barrett of Kutak Rock Named Subchapter V Trustee KLIMA CONTROL: Seeks to Hire ALTA Collaborative PLLC as Accountant KOLSTEIN MUSIC: Court Extends Cash Collateral Access to Aug. 20 LAVIE CARE: No Decline in Resident Care, PCO Report Says LAZARUS INDUSTRIES: Committee Taps Cristo Law Group as Counsel LEFEVER MATTSON: Seeks to Extend Plan Exclusivity to October 31 LEVEL 3 FINANCING: S&P Rates First-Lien Senior Secured Notes 'B+' LION RIBBON: Seeks to Sell 4 Owned Locations Properties LIVEONE INC: Robert Ellin, Affiliates Disclose Equity Stake LOUKYA INC: Seeks to Hire Gillman Capone LLC as Attorneys M/I HOMES: Moody's Upgrades CFR to Ba1 & Alters Outlook to Stable MANE SOURCE: Gets Extension to Access Cash Collateral MARI ARI: Seeks to Hire Baker & Associates as Bankruptcy Counsel MARIN SOFTWARE: Hires Armanino Advisory LLC as Financial Advisor MATHESON FLIGHT: Punitive Damages Claims Mandatorily Subordinated MERIT STREET: Seeks to Hire Portage Point as Investment Banker MILLROSE PROPERTIES: S&P Rates New $1BB Unsecured Notes 'BB' MIP V WASTE: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable MOLINA VENTURES: Case Summary & 20 Largest Unsecured Creditors NAOUI LLC: Seeks to Extend Plan Exclusivity to Nov. 28, 2025 NHC INVESTMENTS: Seeks to Hire The Keating Firm as Legal Counsel NINJA MOUNTAIN: Seeks to Hire Keith Y. Boyd P.C. as Legal Counsel OCEAN POWER: Reports $21.5 Million Net Loss in FY25 PAWLUS DENTAL: Seeks to Hire Tax Lady LLC as Accountant PEGGY NESTOR: Appeal in Togut Case Dismissed with Prejudice PEGGY NESTOR: Appeal in Togut Case Dismissed Without Prejudice PEGGY NESTOR: Appeal on Insurance Financing Agreement Dismissed PEGGY NESTOR: Court Won't Remove Albert Togut as Chapter 11 Trustee PEGGY NESTOR: Phillips Nizer Retained as Real Estate Counsel PEGGY NESTOR: Sister Must Comply with Court Order and Subpoena PENNSYLVANIA ECONOMIC: Moody's Affirms Ba2 Rating on 2013A Bonds PEOPLE POWERED: Seeks to Hire Kasowitz LLP as Bankruptcy Counsel PETSMART LLC: S&P Affirms 'B+' Issuer Credit Rating, Outlook Neg. PHYSICAL INVESTMENTS: Hires Magee Goldstein Lasky as Attorney PLATE RESTAURANT: Taps Phillips & Thomas LLC as Bankruptcy Counsel PLAZA UTILITIES: Voluntary Chapter 11 Case Summary POSITRON CORP: Ex-Chair's Bid to Vacate $1.917M Judgment Okayed PRND3L INC: Stephen Darr of Huron Named Subchapter V Trustee PROSPECT MEDICAL: Gets Additional $55MM DIP Loan From JMB PROSPECT MEDICAL: No Patient Care Concern, 3rd PCO Report Says PUERTO RICO: White House Fires Five Oversight Board Members PURDUE PHARMA: Court Affirms Denial of Class Certification Motion RCB ENTERPRISES: Hires George E. Jacobs as Bankruptcy Counsel RED PLANET: Moody's Rates New Senior Secured First Lien Loans 'B3' REGIONAL WEST: Fitch Lowers LongTerm IDR to 'B-', Outlook Negative REVOLOK USA: Hires Latham Luna Eden as Bankruptcy Counsel RIO DEL PILAR: Mark Sharf Named Subchapter V Trustee RITE AID: Bid to Enforce Sale Order Granted in Part ROCKET COMPANIES:S&P Assigns 'BB' Rating on Obligor Exchange Notes ROCKY MOUNTAIN: Court Extends Cash Collateral Access Until Oct. 31 SALEM POINTE: Plan Exclusivity Period Extended to Dec. 31 SAMYS OC: Gets Extension to Access Cash Collateral SHIELDS NURSING: PCO Reports Resident Care Complaints SILVERROCK DEVELOPMENT: Seeks to Extend Plan Exclusivity to Dec. 1 SIRVA WORLDWIDE: Moody's Cuts CFR to 'Caa2', Outlook Stable SLATE GAP: Beverly Brister Named Subchapter V Trustee SOUTHWEST FIRE: Daniel Behles Named Subchapter V Trustee SPORTS LEADERSHIP: S&P Assigns 'BB+' Rating on 2025A&B Rev. Bonds STONE CREST: Tamara Miles Ogier Named Subchapter V Trustee SUMMIT PROTECTIVE: Lisa Holder Named Subchapter V Trustee SUNATION ENERGY: Hires CBIZ CPAs as Auditor After UHY Exit SUNNOVA ENERGY: McDowell Wins Bid to Withdraw as Counsel THRASIO LLC: Moody's Withdraws 'Ca' Corporate Family Rating UMAPM HOLDING: Court Extends Cash Collateral Access to Dec. 31 VIA MIZNER: Plan Exclusivity Period Extended to Aug. 28 VIRGINIA PARK: Court Transfers Bankruptcy Case Venue to Michigan VSBROOKS INC: Tarek Kiem of Kiem Law Named Subchapter V Trustee ********* 100 PERCENT CHIROPRACTIC: Leon Jones Named Subchapter V Trustee --------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Leon Jones, Esq., at Jones & Walden, LLC, as Subchapter V trustee for 100 Percent Chiropractic Foster, LLC. Mr. Jones will be paid an hourly fee of $500 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Jones declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Leon S. Jones, Esq. Jones & Walden, LLC 699 Piedmont Ave. NE Atlanta, GA 30308 Phone: (404) 564-9300 ljones@joneswalden.com About 100 Percent Chiropractic Foster 100 Percent Chiropractic Foster, LLC, operates a wellness clinic providing chiropractic care, massage therapy, and nutritional supplements. It offers services such as corrective chiropractic treatment, family wellness programs, personal injury care, prenatal and pediatric care, and therapeutic massage. It is part of the 100% Chiropractic franchise network, which operates across the U.S. 100 Percent filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-58291) on July 24, 2025. In the petition signed by Jamie Foster, manager, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Stacey G. Jernigan oversees the case. Will Geer, Esq., at Rountree, Leitman, Klein & Geer, LLC, represents the Debtor as legal counsel. 418RE – ONE: Gets Interim OK to Use Cash Collateral ----------------------------------------------------- 418RE-One Appleton, LLC got the green light from the U.S. Bankruptcy Court for the District of Massachusetts to use the cash collateral of secured creditor Alpha Debt Partners I Series, LLC. The court's order authorized the Debtor's interim use of cash collateral in accordance with its budget pending a final hearing. Alpha Debt's cash collateral includes cash on hand, rents and pre-bankruptcy accounts receivable. As adequate protection, Alpha Debt will be granted continuing replacement liens and security interests, with the same validity, priority and extent as its pre-bankruptcy liens and security interests. The next hearing is set for August 26. The deadline for filing objections is on August 25. The Debtor owns a mixed-use commercial property at 439 Tremont Street in Boston and holds a liquor license managed by a tenant. The building is under a $16 million purchase and sale agreement, and the Debtor intends to use proceeds from the sale to pay off debts. The main secured debt originated from a loan with Brookline Bank in 2019 for $8.5 million, later acquired by Alpha Debt. Additionally, the Debtor owes approximately $53,000 in municipal taxes and $223,000 to unsecured creditors. A key dispute centers around a Forbearance Agreement signed in September 2024, in which the Debtor granted Alpha Debt certain rights, including a deed-in-lieu of foreclosure and a mechanism allegedly designed to prevent the Debtor from filing bankruptcy. The Debtor argued these provisions are unlawful and unenforceable. The dispute escalated after a clerical error delayed a June loan payment, which was corrected within days. Despite the cure, Alpha Debt claimed a default and threatened to record the deed-in-lieu, prompting the Debtor to sue in state court. After the state court denied an injunction, the Debtor filed for bankruptcy. About 418RE - One Appleton LLC 418RE - One Appleton, LLC is a single asset real estate company that owns property at 439 Tremont Street in Boston's South End. 418RE - One Appleton sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-11380) on July 3, 2025. In its petition, the Debtor reported estimated assets between $10 million and $50 million and estimated liabilities between $1 million and $10 million. Judge Christopher J. Panos handles the case. The Debtor is represented by David B. Madoff, Esq. at Madoff & Khoury, LLP. 75 ESSEX CORNER: Seeks to Tap Westerman Ball as Bankruptcy Counsel ------------------------------------------------------------------ 75 Essex Corner LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire Westerman Ball Ederer Miller Zucker & Sharfstein, LLP as bankruptcy counsel. The firm's services include: a. administering these chapter 11 cases and the Debtor's affairs while in chapter 11, including all issues arising from or impacting the Debtor in these chapter 11 proceedings; b. advising the Debtor with respect to its duty as a Debtor under the Bankruptcy Code; c. preparing on behalf of the Debtor of all necessary applications, motions, orders, reports and other legal papers; d. appearing in Bankruptcy Court to represent the interests of the Debtor; e. representing the interests of the Debtor in all aspects and phases of the potential sale or other disposition of the Property; f. negotiating, formulating, and drafting any plan of reorganization or liquidation and matters related thereto; g. advising and guiding the Debtor with respect to any transfer, pledge, conveyance, sale or other liquidation of its assets; h. conducting such investigation, if any, as the Debtor may desire concerning, among other things, the assets, liabilities, financial condition and operations of the Debtor that may be relevant to these cases, including the validity, extent, priority, and amount of alleged secured and unsecured claims and liens; i. commencing and prosecuting adversary proceedings as may be necessary and appropriate; and j. such other matters as may be necessary and appropriate in the context of the Debtor's chapter 11 case. The firm will be paid at these rates: Partners and counsel $495 to $795 per hour Associates $365 to $600 per hour Paraprofessionals $275 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Thomas Draghi, a partner at Westerman Ball Ederer Miller Zucker & Sharfstein 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: Thomas A. Draghi, Esq. Westerman Ball Ederer Miller Zucker & Sharfstein LLP 1201 RXR Plaza Uniondale, NY 11556 Tel: (516) 622-9200 E-mail: tdraghi@westermanllp.com About 75 Essex Corner LLC 75 Essex Corner LLC is a single asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). 75 Essex Corner LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-41388) on March 25, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Nancy Hershey Lord handles the case. The Debtor is represented by Joshua R. Bronstein, Esq. at JOSHUA R. BRONSTEIN & ASSOCIATES, PLLC. AGDP HOLDING: Case Summary & 30 Largest Unsecured Creditors ----------------------------------------------------------- Lead Debtor: AGDP Holding Inc. Avant Gardner MGMT Inc. The Reyn New York Inc. 140 Stewart Ave Brooklyn, NY, 11237 Business Description: The Debtors operate a multi-space entertainment venue complex in North America, hosting large-scale live events such as concerts, festivals, corporate functions, and multimedia shows. The Debtors are known for their advanced audiovisual production capabilities, including a 2022 upgrade featuring one of the world's highest-resolution video walls. Chapter 11 Petition Date: August 4, 2025 Court: United States Bankruptcy Court District of Delaware Six affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- AGDP Holding Inc. (Lead Case) 25-11446 Made Event LLC 25-11442 Avant Gardner, LLC 25-11443 EZ Festivals LLC 25-11444 AG Management Pool LLC 25-11445 Reynard Productions, LLC 25-11447 Judge: Hon. Mary F. Walrath Debtors' General Bankruptcy Counsel: Sean M. Beach, Esq. Edmon L. Morton, Esq. Kenneth J. Enos, Esq. S. Alexander Faris, Esq. Sarah Gawrysiak, Esq. Evan S. Saruk, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP 1000 North King Street Rodney Square Wilmington, Delaware 19801 Tel: (302) 571-6600 Fax: (302) 571-1253 Email: sbeach@ycst.com emorton@ycst.com kenos@ycst.com afaris@ycst.com sgawrysiak@ycst.com esaruk@ycst.com Debtors' Financial Advisor: TRIPLE P TRS, LLC Debtors' Investment Banker: TRIPLE P SECURITIES, LLC Debtors' Claims & Noticing Agent and Administrative Advisor: KURTZMAN CARSON CONSULTANTS, LLC d/b/a VERITA GLOBAL Lead Debtor's Estimated Assets: $50 million to $100 million Lead Debtor's Estimated Liabilities: $100 million to $500 million The petitions were signed by Gary Richards as chief executive officer. A full-text copy of the Lead Debtor's petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/2VKH2DY/AGDP_Holding_Inc__debke-25-11446__0001.0.pdf?mcid=tGE4TAMA Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Heini Limited Liability Trade Claim $2,093,811 Corporation 558 Macdonough Street, #3 Brooklyn, Ny 11233 Email: Accounting@Heini.Build 2. Black Coffee Entertainment Trade Claim $1,870,000 (Pty) Ltd 9 Autumn Street Rivonia, Johannesburg 2191 South Africa Email: Cristiana@Realblackcoffee.Net 3. Packin Realty Company Unsecured Debt $1,500,000 5 Hemlock Hollow Place Armonk, NY 10504 Email: Gpackin@Dmlumber.Com 4. Gateway Productions Trade Claim $1,055,050 10 Mulliken Way Newburyport, Ma 10950 Email: Accountspayable@Gateway-Productions.Com 5. Dice FM Inc. Trade Claim $843,157 10 Grand Street Suite 400 Brooklyn, NY 11249 Email: Russ@Dice.Fm 6. Nova Traffic AG Trade Claim $622,854 Oberfeldstrasse 14 Kloten, Ch-8302 Switzerland Email: Nova@Novatraffic.Ch 7. AEG Presents LLC Trade Claim $535,000 53 W 23rd St, Floor 5 New York, Ny 10010 Email: Jglancy@Bowerypresents.Com 8. Able Equipment Rental Inc Trade Claim $509,953 1850 Gateway Blvd Concord, CA 30384-0711 Email: Accountsreceivable@Ableequipment.Com 9. Christie Lites Enterprises Trade Claim $492,904 6990 Lake Ellenor Drive Orlando, Fl 32809 Email: Cmcme@Christielites.Com 10. Dominic Cappelletti Dba Nightmode Trade Claim $451,362 Address On File 11. One Pulse Group LLC Trade Claim $381,327 6280 Spring Mountain Rd Suite 115 Las Vegas, NV 89146 Email: Luffy@Onepulseevent.Com 12. Plus Music US Inc. Trade Claim $311,762 5 Pennsylvania Plaza Suite 2300 New York, Ny 10001 Email: Contact@Plusmusic-Us.Com 13. Brookside Environmental, Inc. Trade Claim $247,387 22 Ocean Avenue Copiague, NY 11726 Email: Bgraham@Brooksideweb.Com 14. Creative Artists Agency Trade Claim $244,288 2000 Avenue Of The Stars Los Angeles, CA 90067 Email: Crossoveraccounting@Caa.Com 15. McAlpine Trade Claim $236,429 390 5th Ave Suite 802 New York, NY 10018 Email: John@Mcalpinecontractingco.Com 16. Stripe Trade Claim $235,293 354 Oyster Point Blvd South San Francisco, CA 94080 Email: Accounts@Stripe.Com 17. Tomexpo AG Trade Claim $219,900 1 Gartenstrasse Wiedlisbach, 4537 Switzerland Email: Info@Tomexpo.Com 18. Iron Group Corp. Trade Claim $214,164 2354 Coney Island Ave Brooklyn, NY 11223-5002 Email: Info@Ironworkspro.Com 19. Zin Electrical Inc. Trade Claim $206,840 235 West End Ave Brooklyn, NY 11235 Email: Norbertg@Zinelectrical.Com 20. CID Plumbing Trade Claim $202,550 59 Satterlee Street Staten Island, Ny 10307 Email: Info@Cid247.Com 21. MTD USA LLC Trade Claim $200,000 5101 Chatooga Drive Lithonia, Ga 30038 Email: Info.Us@Mtd.Net 22. Hard Feelings LLC Trade Claim $190,000 184 Kent Avenue Brooklyn, NY 11249 Email: Sveta.Ermolaeva@Gmail.Com 23. Telecom Infrastructure Corp Trade Claim $187,124 122 East 42nd Street Suite 1900 New York, NY 10168 Email: Bmason@Telecom-Wiring.Com 24. Browntech Trade Claim $176,000 72 Bowne Street Brooklyn, NY 11237 Email: Bownetechcorp@Gmail.Com 25. Moncon Trade Claim $153,077 1 Blue Hill Plaza 10th Floor Pearl River, NY 10965 Email: Caroline@Monconinc.Com 26. Alex Josowitz Trade Claim $141,392 Address On File 27. Wizard Studios North, Inc Trade Claim $133,436 2-15 26th Avenue Astoria, NY 11102 Email: Shawn@Wizardstudios.Com 28. United Site Services Trade Claim $126,751 Formerly Johnny On The Spot 3168 Bordentown Ave Old Bridge, NJ 08857 Email: Ar_Tristate@Unitedsiteservices.Com 29. Grant Thornton LLP Professional $126,750 1415 Vantage Park Drive Services Suite 500 Claim Charlotte, NC 28203 Email: Cash@Us.Gt.Com 30. Singer Equipment Company, Inc. Trade Claim $124,650 150 South Twin Valley Road Elverson, PA 19520 Email: Aselig@Singerequipment.Com AIRX LLC: Gets Extension to Access Cash Collateral -------------------------------------------------- AirX LLC received another extension from the U.S. Bankruptcy Court for the Western District of Washington to use cash collateral. The court's order authorized the Debtor to continue to use the cash collateral of its secured creditors to pay the expenses set forth in its eight-week budget, which projects total operational expenses of $216,197. As adequate protection for the Debtor's use of their cash collateral, Umpqua Bank, Kapitus, LLC and surety companies including Merchants Bonding Company and Markel Insurance Company will receive replacement liens, with the same priority as their pre-bankruptcy liens. The replacement liens attach to all assets of the Debtor that are similar to the secured creditors' pre-bankruptcy collateral except avoidance actions. As additional protection, Umpqua will receive a monthly payment of $10,917. The final hearing is scheduled for August 29. A search of the lien records maintained by the Washington Department of Licensing reveals these creditors filed financing statements against the Debtor: Umpqua Bank, Billd Exchange, LLC, Philadelphia Indemnity Insurance Co., and CT Corp. System and Financial Agent Services as representatives. Umpqua Bank has historically been the Debtor's primary lender. The 2023 financing statement filed by the bank appears to perfect a lien against the Debtor's inventory, chattel paper, accounts, equipment, and general intangibles. While Umpqua may not have a direct lien on the Debtor's cash and deposit accounts, to the extent that the Debtor's revenue largely consists of realized accounts receivable, Umpqua appears to have a first-position lien on the cash collateral. About AirX LLC AirX LLC, is a mechanical contractor specializing in HVAC systems and building equipment installation based in Vancouver, Washington. AirX LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-41640) on July 10, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Judge Mary Jo Heston handles the case. The Debtor is represented by: Stephen A. Raher, Esq. Tabor Law Group Tel: 971-634-0190 Email: sraher@pdx-law.com AKIN MEARS: Court Denies Personal Seat License Sale to K. Steinberg ------------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, has denied Allison D. Byman, Chapter 7 Trustee of the estate of Akin Mears LLP's motion to return funds to prior purchaser and resell Houston Texans Personal Seat Licenses and remaining 2025 Season Tickets to Kevin Steinberg. The Court held that the Houston Texas must be served with the motion. Second, the Trustee must be compensated for her attorney fees. The sale as "as is where is". Although the Court believes that an accommodation is fair under the circumstances, the risk was borne by the Purchaser. About Akin Mears LLP Akin Mears LLP is a national law firm that handles claims for injured individuals and families from all 50 states, U.S. Territories, Canada and other foreign countries. Akin Mears sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-30358) on January 23, 2025. Judge Marvin Isgur presides over the case. Miriam T. Goott of Walker & Patterson PC represents the Debtor as legal counsel. APL CARGO: Taps Don Smock Auction Company as Appraiser ------------------------------------------------------ APL Cargo, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Indiana to employ Don Smock Auction Company Inc. as appraiser. Don Smock will appraise the Debtors' collateral, their trucks and trailers. The firm will charge the Debtors a per day appraisal fee of $1,000 and per day site visit fee of $1,000. In addition, Debtors will reimburse DSA for all normal business expenses incurred. Don Smock Auction Company Inc. is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: Matt Scalf Don Smock Auction Co., Inc. 6531 S State Road 13 Pendleton, IN 46064 Telephone: (765) 778-9277 About APL Cargo Inc. APL Cargo Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ind. Case No. 24-40136) on May 13, 2024. In the petition signed by Stefan Trifan, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Robert E. Grant oversees the case. Weston E. Overturf, Esq., at Kroger, Gardis & Regas, LLP, represents the Debtor as legal counsel. AQUA SPAS: Gets Interim OK to Use Cash Collateral ------------------------------------------------- Aqua Spas, Inc. got the green light from the U.S. Bankruptcy Court for the District of Colorado to use cash collateral. The court's order authorized the Debtor's interim use of cash collateral in accordance with its budget, subject to a deviation on expenses not to exceed 15% without prior agreement of secured creditors or court approval. As adequate protection for any diminution in the value of their collateral, Wells Fargo Commercial Distribution and other secured creditors will be granted a post-petition lien on inventory and income generated from the Debtor's operation after its Chapter 11 filing. The replacement liens will have the same priority as the secured creditors' pre-bankruptcy liens. In addition, the Debtor will keep the secured creditors' collateral insured. The final hearing is scheduled for September 5. The Debtor said that without immediate access to cash collateral, it will be unable to continue operations, leading to closure and loss of value for creditors. The Debtor's assets include vehicles and inventory, with only $5,546 in its bank accounts as of the filing date. It acknowledges that Wells Fargo holds a perfected, secured claim of approximately $285,731 under a UCC-1 financing statement. In addition, several merchant cash advance companies may have unperfected or unclear claims to the Debtor's cash, including entities like Fiji Funding, Fox Capital Group, and Paypal, among others. Vehicle loans through Ally Financial and Ford Finance are not secured by cash. About Aqua Spas Inc. Aqua Spas Inc., also known as Spas R Us, sells and services hot tubs and swim spas through its locations in Fort Collins, Greeley, and Castle Rock, Colorado. The company is a longtime dealer of Master Spas products, including the Michael Phelps Signature Swim Spa line. It also offers spa accessories, chemicals, filters, and related supplies, with shipping available for orders over $100. Aqua Spas sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 25-14565) on July 22, 2025. In its petition, the Debtor reported estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. Judge Michael E. Romero handles the case. The Debtor is represented by Jonathan M. Dickey, Esq., at Kutner Brinen Dickey Riley, P.C. ARCHANGEL DISCIPLINES: Aleida Molina Named Subchapter V Trustee --------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Aleida Martinez Molina, Esq., as Subchapter V trustee for Archangel Disciplines, LLC. Ms. Molina will be paid an hourly fee of $450 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Molina declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Aleida Martinez Molina, Esq. 2121 NW 2nd Avenue, Suite 201 Miami, FL 33127 Telephone: (305) 297-1878 Email: Martinez@subv-trustee.com About Archangel Disciplines Archangel Disciplines, LLC, doing business as Stemtree Education Center, filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-18962) on August 1, 2025. At the time of the filing, the Debtor reported up to $50,000 in assets and between $100,001 and $500,000 in liabilities. Judge Robert A. Mark presides over the case. Jesus Santiago, Esq., represents the Debtor as legal counsel. ARORA INVESTMENTS: Taps Richman & Richman as Bankruptcy Counsel --------------------------------------------------------------- Arora Investments LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Wisconsin to hire Richman & Richman LLC as counsel. The firm's services include: (a) advising the Debtor with respect to its powers and duties as a debtor in possession and the continued management and operation of its businesses and properties; (b) assisting the Debtor with the continuation of debtor in possession operations and monthly reporting requirements; (c) advising the Debtor and taking all necessary action to protect and preserve the Debtor's estates, including prosecuting actions on behalf of the Debtor, defending any actions commenced against the Debtor, and representing the Debtor's interests in negotiations concerning litigation in which the Debtor is involved; (d) preparing amendments to bankruptcy schedules, statements of financial affairs, and all related documents as necessary; (e) assisting with the preparation of a plan of reorganization and the related negotiations and hearings; (f) preparing pleadings in connection with the chapter 11 case, including motions, applications, answers, orders, reports, and papers necessary or otherwise beneficial to the administration of the Debtor's estates; (g) analyzing executory contracts and unexpired leases, and the potential assumptions, assignments, or rejections of such contracts and leases; (h) advising the Debtor in connection with any potential sales of assets; (i) appearing at and being involved in various proceedings before this Court or other courts to assert or protect the interests of the Debtor and its estates; (j) analyzing claims and prosecuting any meritorious claim objections; and (k) performing other legal services for the Debtor that may be necessary and proper in connection with this Case. The firm's counsel and staff will be paid at these hourly rates: Michael Richman, Member $795 Claire Ann Richman, Member $625 Eliza Reyes, Senior Associate $495 James Soo, Associate $325 David Fowle, Paralegal $250 Kiran Hayer, Paralegal $225 Law Clerks $195 - $225 Paraprofessionals $100 - $150 In addition, the firm will seek reimbursement for expenses incurred. The firm received an initial retainer of $50,000 from the Debtor. Ms. Richman 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: Claire Ann Richman, Esq. Michael P. Richman, Esq. Richman & Richman LLC 122 W. Washington Ave., Ste. 850 Madison, WI 53703 Telephone: (608) 889-2322 About Arora Investments LLC Arora Investments LLC operates a gas station business through its property located at 2675 W. American Drive in Neenah, Wisconsin. Arora Investments LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wis. Case No. 25-24079) on July 17, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Rachel M. Blise handles the case. The Debtor is represented by Claire Ann Richman, Esq. at RICHMAN & RICHMAN LLC. ASTRO ACQUISITION: S&P Assigns 'B' ICR, Outlook Stable ------------------------------------------------------ S&P Global Ratings assigned its 'B' issuer credit rating to proprietary aftermarket parts, services, and emissions reduction solutions provider Astro Acquisition LLC (doing business as Cooper Machinery Services). At the same time, S&P assigned its 'B' issue-level rating and '3' recovery rating to the company's proposed term loans (TLB). The stable outlook reflects S&P's view that the company's favorable operating trends will continue over the next 12 months. Astro plans to issue a $820 million senior secured facility, including $700 million of first-lien term loans (TLB) and a $120 million revolving credit facility (RCF). The company will use the term loan facility to repay its existing roughly $440 million outstanding third-party debt and payout about $240 million in dividends to its owner Arcline Investment Management. S&P's 'B' issuer credit rating reflects the company's small revenue base, narrow product and end-market focus, and high degree of customer concentration. It's position as the only brand agnostic operator of scale providing mission-critical aftermarket solutions to the natural gas end market, high recurring revenue business model, solid margin profile, and positive free operating cash flow (FOCF) somewhat offset these factors. Cooper's small scale and narrow focus are key credit risks. When compared to similarly rated peers, Cooper's revenue base is small. S&P said, "We forecast it will generate about $400 million in top-line revenue in 2025, including inorganic growth, and project mid- to high-single digit annual percentage growth across our forecast horizon. This modest revenue base, in our view, increases Cooper's vulnerability during periods of pull back in natural gas production." The company generates substantially all of its revenues servicing natural gas end markets, mainly midstream and transmission. While the natural gas end of the oil and gas (O&G) industry exhibits less volatility than the overall O&G industry, a reduction in natural gas production could hurt demand for Cooper's aftermarket solutions. Furthermore, about 40% of the company's revenue is generated from its top 10 customers. Together, these factors support S&P's view that a slowdown in natural gas production can cause the company's earnings to exhibit increased levels of volatility. Cooper's market position, aftermarket focus, and margin profile support the rating. S&P said, "We understand that Cooper is the only brand-agnostic aftermarket manufacturer of scale providing its range of solutions in the end markets it serves. The company offers mission-critical solutions across the life-cycle of installed engines, compressors, and turbocharges that support the flow of natural gas, including aftermarket parts, repair and maintenance, and upgrades. More than 50% of its revenues are from the sale of proprietary aftermarket parts. While it generates the majority of its revenues from its Cooper-branded installed base, which constitutes roughly 25% of the global installed base, its capabilities in upgrades and repair create additional opportunities to grow its market share outside of its installed base. We believe these factors create some barriers to entry as demonstrated by its long-tenured relationships with leading energy infrastructure companies and S&P Global Ratings adjusted EBITDA margins above 30%. We view Cooper's EBITDA margin as above average when compared to a broad set of capital goods peers." S&P said, "We expect Cooper to maintain favorable credit metrics over the next 12 months. Assuming the transaction closes as proposed, we expect S&P Global Ratings-adjusted debt leverage in the high-5x area over the next 12 months. We expect the company's earnings will modestly improve in fiscal-year 2025 due to U.S. natural gas production and incremental market share gains. Our ratings incorporate Cooper's ability to generate positive free cash flow, supported by predictable demand trends and visibility over a few years. Considering its minimal capital expenditure (capex) requirements and our expectations for continued earnings growth, we estimate the company will continue to generate positive FOCF across our forecast horizon." The highly leveraged financial risk profile also reflects its financial-sponsor ownership. Cooper is owned by financial-sponsor Arcline. The sponsor intends to maintain a reasonably conservative leverage profile relative to other private-equity owned companies. This lower debt leverage compared to other sponsor-owned companies is a key factor supporting the rating. Nonetheless, a more aggressive financial policy, demonstrated by a higher leverage tolerance or further debt-funded shareholder returns or larger debt-funded acquisitions, would pressure our rating. Given the company's acquisitive history of 14 transactions under Arcline's ownership, S&P expects modest tuck-ins to continue and forecast about $30 million in annual cash outflows to support M&A activity. The stable outlook reflects S&P's view that the company's favorable operating trends will continue over the next 12 months and its S&P Global Ratings-adjusted debt to EBITDA will remain in the mid- to high-5x area. S&P could lower its rating if: -- The company's S&P Global Ratings-adjusted debt leverage increases and sustains above 6.5x. This could occur if its operating performance deteriorates, or it adopts a more aggressive financial policy that includes large debt-funded acquisitions or additional sizeable shareholder distributions; or -- The company cannot maintain positive FOCF. While unlikely over the next 12 months, S&P could raise its rating if: -- The company meaningfully improves its scale and portfolio diversity while maintaining S&P Global Ratings-adjusted debt to EBITDA below 5x on a sustained basis; and -- Its financial sponsor demonstrates a commitment to maintaining such debt leverage, even when incorporating potential dividends and acquisitions. ATS CORP: Moody's Alters Outlook on 'Ba3' CFR to Stable ------------------------------------------------------- Moody's Ratings affirmed ATS Corporation's (ATS) corporate family rating at Ba3, the company's probability of default rating at Ba3-PD and its senior unsecured rating at B1. The speculative grade liquidity rating (SGL) remains unchanged at SGL-2. The rating outlook was changed to stable from positive. "The change in outlook reflects that ATS' debt to EBITDA will remain above 3.5x over the next 12 to 18 months after the planned transition away from transportation and the challenges faced during FY25 due to the EV customer issue." said Will Gu, Moody's Ratings analyst. "The stable outlook reflects Moody's expectations that debt to EBITDA declines due to debt payment and solid organic growth." RATINGS RATIONALE While ATS's financial leverage is high (Moody's adjusted ~4.5x pro forma for debt repayment from the EV settlement proceeds), revenue visibility remains strong, with a TTM book to bill ratio well above 1x and a healthy backlog supporting Moody's expectations for a return to organic growth. ATS Corporation's rating benefits from: (1) a track record of deleveraging (particularly post acquisition) with Moody's expectations of debt to EBITDA returning to around 3.8x by the end of FY 2026 and about 3.5x in FY2027 as the defensive backlog supports a return to organic growth; (2) good geographical and end market diversification for its automated industrial solutions; (3) significant and growing revenue concentration in tightly regulated, higher margin, and high precision markets characterized by favorable long-term demand trends, such as life sciences; and (4) Moody's expectations of a return to strong free-cash-flow generation after overcoming challenges in FY25. The company is constrained by: (1) debt to EBITDA that remains above 3.5x for some time; (2) a small scale among large players in a competitive environment; (3) the volatile nature of order bookings and cyclical manufacturing industry; and (4) an active acquisition strategy involving releveraging and execution risks. ATS will maintain good liquidity (SGL-2) over the next 12 months. Sources total about C$1.2 billion, consisting of cash on hand of about C$226 million as of March 31, 2025, expected free cash flow of around C$150 million over the next four quarters to March 2026 (excluding the EV settlement) and full availability under the C$750 million revolver expiring November 2026. Moody's expects the revolver to be refinanced on a timely basis. Moody's expects a small amount of excess free cash flow to be allocated toward a combination of acquisitions and share buybacks. ATS' revolver is subject to leverage and coverage covenants with which the company will remain in compliance. The company has limited flexibility to boost liquidity from asset sales. ATS has two classes of debt; (1) a secured credit facility with a C$750 million revolver and C$300 million non-amortizing secured loan maturing in 2026 (both unrated) and; (2) a US$350 million senior unsecured notes due 2028 (rated B1) and a C$600 million senior unsecured notes due 2032 (rated B1). The unsecured notes, which are guaranteed by certain material subsidiaries, are rated one notch below the corporate family rating to reflect their junior position relative to the secured revolver and term loan ranking ahead of them. The stable outlook reflects Moody's expectations that the transportation segment is close to bottoming out, having resolved issues faced in FY25 and that ATS will execute well, returning to organic growth, achieve significant deleveraging in FY26, achieve strong free cash flow generation, and maintain good liquidity over the next 18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if ATS maintains positive free cash flow, stable organic revenue growth, and debt to EBITDA is sustained below 3.5x. The ratings could be downgraded if ATS debt to EBITDA sustains above 4.5x, liquidity deteriorates, or if revenue and EBITDA continues to decline. The principal methodology used in these ratings was Manufacturing published in September 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. ATS Corporation, headquartered in Cambridge, Ontario, Canada, designs, engineers, builds and services automated manufacturing systems and production lines for multinational companies. AZ 175TH: Seeks to Hire Morrison-Tenenbaum as Bankruptcy Counsel ---------------------------------------------------------------- AZ 175th Street LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire Morrison-Tenenbaum PLLC as counsel. The firm will provide these services: (a) advise the Debtor with respect to its powers and duties in the management of its estate; (b) assist in any amendments of schedules and other financial disclosures and in the preparation/review/amendment of a disclosure statement and plan of reorganization; (c) negotiate with the Debtor's creditors and take necessary legal steps to confirm and consummate a plan of reorganization; (d) prepare on behalf of the Debtor all necessary legal papers in this case; (e) appear before the Bankruptcy Court to represent and protect the interests of the Debtor and its estate; and (f) perform all other legal services for the Debtor that may be necessary and proper for an effective reorganization. The firm will be paid at these hourly rates: Partners $550 to $695 Senior Counsel $495 Associates/Of Counsel $380 Paraprofessionals $250 In addition, the firm will seek reimbursement for expenses incurred. Prior to the petition date, the firm received an initial retainer of $40,000 from the Debtor. Lawrence Morrison, Esq., an attorney at Morrison-Tenenbaum, 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: Lawrence F. Morrison, Esq. Morrison-Tenenbaum, PLLC 87 Walker Street, Second Floor New York, NY 10013 Telephone: (212) 620-0938 Email: lmorrison@m-t-law.com About AZ 175th Street LLC AZ 175th Street LLC leases real estate properties. AZ 175th Street LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-42550) on May 23, 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 Elizabeth S. Stong handles the case. The Debtors are represented by Lawrence Morrison, Esq. at MORRISON TENENBAUM PLLC. AZUL SA: Committee Hires Alton Aviation as Financial Advisor ------------------------------------------------------------ The official committee of unsecured creditors of Azul S.A. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Alton Aviation Consultancy LLC as financial advisor. Alton will render these professional services: i. General and initial reviews, including: a. Review of certain "first day motions" and general motions and pleadings review, including review of first day reporting materials; b. Assessment of cash management/short term liquidity, conducting a 13-week cash flow assessment, evaluating near-term liquidity needs, and assessing the achievability of projections; c. Assessment of all existing deferral agreements; d. Review of factoring agreements, credit card facilities including holdback positions, if any; and e. Valuation of certain collateral underpinning the DIP facility and secured notes (excluding intellectual property assets) -- including but not limited to, the Debtors' loyalty program, cargo business, and spare aircraft parts; ii. Strategic assessment, including: a. Assessment of the Debtors' commercial strategies across all segments -- domestic/international/cargo/ancillaries; b. Assessment of the Azul Fidelidade Program, its valuation and strategic positioning; and c. Evaluation of Air Operator Certificates, codeshares and affiliations with alliance; iii. Competitive assessment, including: a. Evaluation of market dynamics, including positioning relative to main competitors -- current and future state; b. Traffic forecasting including an assessment as to future demand and capacity scenarios and their likely impact; and c. Business Model Review, including an assessment of airline franchise, its network and fleet, Azul Fidelidade Program, product concept, fare structuring and alliance; iv. Operational assessment, including: a. Regular comparison and benchmarking of financial and operational metrics against regional peers, identifying strengths, weaknesses, and strategic opportunities, quarterly reporting to assess financial health, operational performance, and trends; b. Cost assessment, including crew, ground operations and other costs; c. Review of union agreements and benchmarking of associated costs; and d. Provision of weekly flash reports to Committee; v. Financial Analysis and Modelling, including: a. Review underlying collateral package for DIP financing; b. Review and assessment of the Monthly Operating Reports, Periodic Reports, and other financial reporting; and c. Development of sophisticated Excel models for sensitivity analyses, including fully functional three-statement financial models; vi. Business Plan Diligence, including: a. Review of the Debtors' proposed business plan (projections and assumptions), focusing on viability, strategic alignment, and financial sustainability; b. Assessment and feasibility of medium-to-longer-term financial projections; c. Executory contract and lease review; and d. Analysis of claims, including claims arising from rejection or abandonment of leases, and creation of the claims tracker to monitor all rejections; vii. Fleet-related analysis, including: a. Review of the Debtors' existing fleet, revised fleet plan and orderbook, reporting on fleet status during chapter 11 period; b. Analysis of maintenance conditions, maintenance forecast, and heavy maintenance contracts; c. Assessment of engine and aircraft status and associated maintenance, repair, and overhaul liens; d. Assistance with identifying and implementing aircraft redeployment opportunities and/or asset divestitures; and e. Analysis of assumption and rejection issues regarding maintenance contracts and other executory contracts and aircraft leases; viii. Creditor Responses, including: a. Respond to inquiries from individual creditors; and ix. Other Services as mutually agreed between the Committee and Alton. The firm will be paid through: Managing Director $1,475 per hour Director $1,160 per hour Associate Director $1,025 per hour Engagement Manager $970 per hour Senior Associate $765 per hour Associate $575 per hour Alton Aviation 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, according to court filings. The firm can be reached at: John Mowry Alton Aviation Consultancy LLC 1700 Broadway, Suite 2202 New York, NY 10019 About Azul S.A. Azul S.A. and affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11176) on May 28, 2025, listing up to $10 billion in both assets and liabilities. Judge Sean H. Lane oversees the case. The Debtors tapped Davis Polk & Wardwell LLP and Togut, Segal & Segal LLP as counsel. On June 13, 2025, the United States Trustee for Region 2 appointed the Committee under section 1102 of the Bankruptcy Code. AZUL SA: Committee Hires Alvarez & Marsal as Financial Advisor -------------------------------------------------------------- The official committee of unsecured creditors of Azul S.A. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Alvarez & Marsal North America, LLC as its financial advisor. The firm will render these services: (a) assist in the review of the Debtors' Schedules of Assets and Liabilities and Statements of Financial Affairs; (b) assist in the review of certain "first day" motions and proposed orders; (c) assist in the review of the Debtors' proposed key employee retention plan and key employee incentive plan, to the extent applicable; (d) attend meetings with the Debtors, the Debtors' lenders and creditors, potential investors, the Committee and any other official committees organized in these chapter 11 cases, the U.S. Trustee, other parties in interest, and professionals hired by the same, as requested; (e) assist in the review of any tax-related issues; (f) assist the Committee and its advisors in its investigation and pursuit of certain potential causes of action; (g) assist the Committee and its advisors in potential settlement negotiations by analyzing potential recoveries to general unsecured creditors under any proposed chapter 11 plan, including by, but not limited to, analyzing potential plan structures, analyzing intercompany claims, and developing a distribution analysis; (h) assist the Committee with analyzing and valuing the Debtors' illiquid assets and trademarks, registrations, registration applications, and other associated intellectual property including, but not limited to, brand names, licensing rights or naming rights; (i) assist the Committee in cooperation with its advisors with local Brazilian issues; and (j) render such other general business consulting or such other assistance as the Committee or its counsel may deem necessary, consistent with the role of a financial advisor and not duplicative of services provided by other professionals in these chapter 11 cases. The firm's current hourly rates are: Managing Directors $1,100 - $1,575 Directors $850 - $1,100 Associates $625 - $825 Analysts $450 - $600 The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mark Greenberg, a partner at Alvarez & Marsal North America, 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: Mark Greenberg Alvarez & Marsal North America, LLC 600 Madison Avenue,8th Floor New York, NY 10022 Tel: (917) 841-8334 Email: mgreenberg@alvarezandmarsal.com About Azul S.A. Azul S.A. and affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11176) on May 28, 2025, listing up to $10 billion in both assets and liabilities. Judge Sean H. Lane oversees the case. The Debtors tapped Davis Polk & Wardwell LLP and Togut, Segal & Segal LLP as counsel. On June 13, 2025, the United States Trustee for Region 2 appointed the Committee under section 1102 of the Bankruptcy Code. AZUL SA: Committee Hires Stocche Forbes as Brazilian Counsel ------------------------------------------------------------ The official committee of unsecured creditors of Azul S.A. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Stocche, Forbes, Filizzola, Clapis e Cursino de Moura Sociedade de Advogados, CNPJ Nº 17.073.496/0001-26, as its Brazilian counsel. The firm's services include: a. participating in meetings of the Committee and subcommittees formed thereby (whether such meetings are in-person, telephonic, or otherwise), and otherwise advising the Committee with respect to its rights, powers, and duties in the Chapter 11 Cases from a Brazilian law perspective; b. assisting and advising the Committee in its meetings and negotiations with the Debtors and other parties in interest regarding Brazilian law issues; c. advising the Committee regarding issues of Brazilian law; d. responding to inquiries from individual creditors related to Brazilian law issues; e. reviewing and analyzing motions, applications, orders, and other pleadings filed with the Court, to the extent they involve aspects of Brazilian law; f. assisting and advising the Committee with respect to applicable foreign proceedings (especially if in Brazil) that may arise in the course of the Chapter 11 Cases; and g. performing all other necessary legal services in the Chapter 11 Cases as may be requested by the Committee. The firm's standard hourly rates are: BRL USD Partners III R$2,850 $513 Partners II R$2,600 $468 Partners I R$2,400 $432 Associates IV R$1,950 $351 Associates III R$1,750 $315 Associates II R$1,500 $270 Associates I R$1,200 $216 Paraprofessionals R$900 $162 In accordance with Appendix B-Guidelines for reviewing fee applications filed by attorneys in larger Chapter 11 cases, Stocche disclosed the following: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Response: No. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Response: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Response: The firm did not represent the Committee prior to the Chapter 11 Cases. Question: Has your client approved your prospective budget and staffing plan, and, if so for what budget period? Response: The Committee and Stocche expect to develop a prospective budget and staffing plan to comply with the U.S. Trustee's requests for information and additional disclosures, and any other orders of the Court, recognizing that in the course of the Chapter 11 Cases there may be unforeseeable fees and expenses that will need to be addressed by the Committee and the firm. Stocche Forbes is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code and as used in section 328(c) of the Bankruptcy Code, according to court filings. The firm can be reached through: Guilherme de Figueiredo Forbes, Esq. Stocche, Forbes, Filizzola, Clapis e Cursino de Moura Sociedade de Advogados, CNPJ Nº 17.073.496/0001-26 R. Sao Bento, 18 14th floor-Center CEP: 20090-010 Tel.: (21) 3609-7900 Email: gforbes@stoccheforbes.com.br About Azul S.A. Azul S.A. and affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11176) on May 28, 2025, listing up to $10 billion in both assets and liabilities. Judge Sean H. Lane oversees the case. The Debtors tapped Davis Polk & Wardwell LLP and Togut, Segal & Segal LLP as counsel. On June 13, 2025, the United States Trustee for Region 2 appointed the Committee under section 1102 of the Bankruptcy Code. AZUL SA: Committee Hires Willkie Farr & Gallagher LLP as Counsel ---------------------------------------------------------------- The official committee of unsecured creditors of Azul S.A. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Willkie Farr & Gallagher LLP as its counsel. The firm's services include: a. advising the Committee in connection with its powers and duties under the Bankruptcy Code, the Bankruptcy Rules, and the Local Rules; b. assisting and advising the Committee relative to the administration of the Chapter 11 Cases; c. attending meetings and negotiating with the representatives of the Debtors and other parties in interest; d. assisting and advising the Committee in its examination and analysis of the conduct of the Debtors' affairs; e. assisting and advising the Committee in connection with any sale of the Debtors' assets pursuant to section 363 of the Bankruptcy Code; f. assisting the Committee in the review, analysis, and negotiation of any chapter 11 plan(s) of reorganization or liquidation that may be filed and assisting the Committee in the review, analysis, and negotiation of the disclosure statement accompanying any such plan(s); g. taking all necessary actions to protect and preserve the interests of the Committee, including: (i) possible prosecution of actions on its behalf; (ii) if appropriate, negotiations concerning all litigation in which the Debtors are involved; and (iii) if appropriate, the review and analysis of claims filed against the Debtors' estates; h. generally preparing on behalf of the Committee all necessary motions, applications, answers, orders, reports, replies, responses, and papers in support of positions taken by the Committee; i. appearing, as appropriate, before the Court, appellate courts, and the U.S. Trustee, and protecting the interests of the Committee before those courts and before the U.S. Trustee; and j. performing all other necessary legal services in the Chapter 11 Cases. Willkie's standard hourly rates are: Partners and Senior Counsel $1,825 to $2,500 Associates, Other Attorneys, and Law Clerks $535 to $1,650 Paraprofessionals $380 to $650 The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The following information is provided in response to the request for additional information set forth in Paragraph D.1 of the U.S. Trustee Fee Guidelines: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Response: No. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Response: No. Question: If you represented the client in the 12 months pre-petition, disclose your billing rates and material financial terms for the pre-petition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed post-petition, explain the difference and the reasons for the difference. Response: N/A. Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Response: The Committee and Willkie expect to develop a prospective budget and staffing plan to comply with the U.S. Trustee's requests for information and additional disclosures, and any other orders of the Court, recognizing that in the course of the Chapter 11 Cases there may be unforeseeable fees and expenses that will need to be addressed by the Committee and Willkie. Brett Miller, Esq., a partner at Willkie Farr & Gallagher, 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: Brett H. Miller, Esq. Willkie Farr & Gallagher LLP 787 Seventh Avenue New York, NY 10019 Tel: (212) 728-8000 About Azul S.A. Azul S.A. and affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11176) on May 28, 2025, listing up to $10 billion in both assets and liabilities. Judge Sean H. Lane oversees the case. The Debtors tapped Davis Polk & Wardwell LLP and Togut, Segal & Segal LLP as counsel. On June 13, 2025, the United States Trustee for Region 2 appointed the Committee under section 1102 of the Bankruptcy Code. AZUL SA: Committee Taps Houlihan Lokey as Investment Banker ----------------------------------------------------------- The official committee of unsecured creditors of Azul S.A. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Houlihan Lokey Capital, Inc. as its investment banker. The firm will render these services: (a) assist and advise the Committee in its evaluation of the Debtors' proposed debtor-in-possession financing and potential alternative sources of financing; (b) assist and advise the Committee in its analysis, review, and due diligence of the Debtors' proposed business plan; (c) assist and advise the Committee in its evaluation of any restructuring proposals and potential exit financing alternatives, including the feasibility of such; (d) assist and advise the Committee in its evaluation of the Debtors' capital structure and debt capacity; (e) assist and advise the Committee in its negotiations with the Debtors and other parties-in-interest, as requested; (f) advise the Committee on the current state of the restructuring and capital markets; and (g) provide such other investment banking services as may be agreed upon by Houlihan Lokey and the Committee, subject to Bankruptcy Court approval. Houlihan Lokey will receive the following compensation: (a) Monthly Fees: Houlihan Lokey shall be paid a nonrefundable monthly cash fee of $175,000 (Monthly Fee). Payment of the Monthly Fee shall be made in accordance with Section 10 of the Engagement Agreement. Each Monthly Fee shall be earned upon Houlihan Lokey's receipt thereof in consideration of Houlihan Lokey accepting this engagement and performing services. Beginning with the tenth (10th) monthly fee, 50 percent of the Monthly Fees timely received by Houlihan Lokey and approved by the final order of the Bankruptcy Court shall be credited against the Deferred Fee to which Houlihan Lokey becomes entitled hereunder (it being understood and agreed that no Monthly Fee shall be credited more than once), except that, in no event, shall such Deferred Fee be reduced below zero; and (b) Deferred Fee: In addition to the other fees provided for, the Debtors shall pay Houlihan Lokey a fee to be paid in cash of $4,500,000. The Deferred Fee shall be earned upon the confirmation of, and payable upon the effective date of, a Chapter 11 plan of reorganization or liquidation with respect to the Debtors. John Popehn, a managing director at Houlihan Lokey 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 through: John Popehn Houlihan Lokey Capital, Inc. 245 Park Avenue, 20th Fl. New York, NY 10167 Telephone: (212) 497-4100 Facsimile: (212) 661-3070 About Azul S.A. Azul S.A. and affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11176) on May 28, 2025, listing up to $10 billion in both assets and liabilities. Judge Sean H. Lane oversees the case. The Debtors tapped Davis Polk & Wardwell LLP and Togut, Segal & Segal LLP as counsel. On June 13, 2025, the United States Trustee for Region 2 appointed the Committee under section 1102 of the Bankruptcy Code. AZUL SA: Sept. 15, 2025 Claims Filing Deadline Set -------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York set Sept. 15, 2025, at 5:00 p.m., as the last date and time for persons or entities to file proofs of claim against Azul SA and its debtor-affiliates. The Court also set Nov. 24, 2025, as the deadline for all governmental units to file their claims against the Debtors. Proofs of claim must be filed either (i) electronically at https://cases.stretto.com/azul using the interface available after clicking the link entitled "File a Claim (Apresentar uma Reclamacao)" or through PACER (Public Access to Court Electronic Records) at https://ecf.nysb.uscourts.gov/, or (ii) by hand delivery to the Clerk of the Bankruptcy Court at United States Bankruptcy Court, SDNY, 300 Quarropas Street, Room 147, White Plains, NY 10601. A claim must be submitted so as to be actually received by the Clerk of the Bankruptcy Court on or before the applicable Bar Date. Only if a proof of claim is filed by hand delivery in accordance with section 6(e) herein, an original, signed copy of the proof of claim must be sent so as to be actually received on or before the applicable Bar Date as follows: By US Mail or other hand delivery system: Azul S.A., et al. Claims Processing c/o Stretto 410 Exchange, Suite 100 Irvine, CA 92602 Other methods not accepted. Proofs of claim sent by means other than as described above, including by means of email or fax, will not be accepted. To receive confirmation that the claim has been filed, either enclose a stamped self-addressed envelope and a copy of this form or go to https://cases.stretto.com/azul/claims/ About Azul S.A. Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers 900 daily flights to over 150 destinations. With an operating fleet of over 200 aircrafts and more than 15,000 Crewmembers, the Company has a network of 300 non-stop routes. Azul was named by Cirium (leading aviation data analysis company) as the most on-time airline in the world in 2023. In 2020, Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian flag carrier earned the number one ranking in the Traveler's Choice Awards. On the Web: http://www.voeazul.com.br/imprensa On May 28, 2025, Azul S.A. and 19 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 25-11176). The cases are pending before Judge Sean H. Lane. The Company is supported by Davis Polk & Wardwell LLP, White & Case LLP, and Pinheiro Neto Advogados as legal counsel; FTI Consulting as financial advisor; Guggenheim Securities, LLC as investment banker; SkyWorks Capital LLC as fleet advisor; and FTI Consulting, C Street Advisory Group, and MassMedia as strategic communications advisors. Stretto is the claims agent. The Participating Lenders are supported by Cleary Gottlieb Steen & Hamilton LLP and Mattos Filho as legal counsel and PJT Partners as investment banker. United Airlines is supported by Hughes Hubbard & Reed LLP and Sidley Austin LLP as legal counsel and Barclays Investment Bank as investment banker. American Airlines is supported by Latham & Watkins LLP as legal counsel. AerCap is supported by Pillsbury Winthrop Shaw Pittman LLP as legal counsel. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of Azul S.A. and its affiliates. B&W INC: Scott Seidel Named Subchapter V Trustee ------------------------------------------------ The U.S. Trustee for Region 6 appointed Scott Seidel as Subchapter V trustee for B&W Inc. Mr. Seidel will be paid an hourly fee of $520 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Seidel declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Scott Seidel 6505 West Park Blvd., Suite 306 Plano, TX 75093 214-234-2500-main 214-234-2503-direct Email: scott@scottseidel.com About B&W Inc. B&W Inc., also known as Granite & Tile Outlet II, provides granite, tile, and related remodeling products and services for residential and commercial applications. B&W Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 25-42650) on July 22, 2025. In its petition, the Debtor reported total assets of $589,701 and total liabilities of $1,999,013. Judge Edward L. Morris handles the case. The Debtor is represented by Robert T. DeMarco, Esq., at DeMarco Mitchell, PLLC. BASIS TEXAS: Moody's Rates New $175.5MM Education Bonds 'Ba2' ------------------------------------------------------------- Moody's Ratings has assigned a Ba2 rating to BASIS Texas Charter Schools, Inc.'s proposed $175.5 million of Education Revenue and Refunding Bonds (BASIS Texas Charter Schools, Inc.), Series 2025. These bonds will be issued by the Arlington Higher Education Finance Corporation on behalf of the charter school network. Moody's have also affirmed the Ba2 rating assigned to the network's outstanding parity revenue bonds. The outlook is stable. The network will have approximately $292.8 million in outstanding parity revenue debt following the current issuance. RATINGS RATIONALE The Ba2 rating reflects BASIS Texas's strong competitive advantages and its expanding operational scale, balanced against relatively weak liquidity and moderate pro-forma debt service coverage. BASIS Texas's rapid growth strategy, which includes opening new schools, is likely to intensify its already high leverage. The new schools are likely to grow to full capacity swiftly, based on management's effective history in opening schools in areas with high demand. The rating also reflects the network's history of healthy operating margins and anticipates a gradual strengthening of its financial reserves, driven by enrollment growth and an improved state funding environment. BASIS Texas has robust governance practices and relatively minimal risk of charter nonrenewal. RATING OUTLOOK The stable outlook reflects the charter school network's ability to maintain enrollment growth and meet operational and financial targets. The network is constrained by high debt levels and relatively low cash position. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Demonstrated ability to reach full capacity across all network schools while bolstering student waitlists and maintaining superior academic performance -- Sustained liquidity improvement to above 100 days cash on hand while maintaining healthy operating margins and debt service coverage of above 1.5x -- Material increases to the network and obligated group's spendable cash to total debt ratio to above 10% FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Failure to meet enrollment or revenue growth projections for both the entire charter school network and obligated group -- Inability to improve upon the charter school network's liquidity, or a narrowing of operating margins or debt service coverage -- Material decreases to the network and obligated group's spendable cash to total debt ratio PROFILE BASIS Texas Charter Schools, Inc. (BASIS Texas) is a nonprofit corporation incorporated in 2012 authorized by the Texas State Board of Education (SBOE) to operate charter schools in the State of Texas (Aaa stable). As of the 2025 fiscal year, BASIS Texas operates 14 schools spread across nine campus sites located in the cities of Austin (Aa1 stable), Dallas (A1 negative), Fort Worth (Aa3 stable), and San Antonio (Aaa stable) metropolitan areas. BASIS Texas has a current combined enrollment of approximately 6,950 students in grades K-12 as of fiscal 2025 year-end. The charter school network operates under a single 10-year charter from its state authorizer that expires on July 31, 2028. METHODOLOGY The principal methodology used in these ratings was US Charter Schools published in April 2024. BEAR STEARNS 2007-1: Moody's Raises Rating on Cl. M-1 Certs to Ca ----------------------------------------------------------------- Moody's Ratings has upgraded the ratings of two bonds issued by Bear Stearns Asset Backed Securities Trust 2007-1. The collateral backing this deal consists of scratch and dent mortgages. A comprehensive review of all credit ratings for the respective transaction has been conducted during a rating committee. The complete rating actions are as follows: Issuer: Bear Stearns Asset Backed Securities Trust 2007-1 Cl. A-3, Upgraded to Aaa (sf); previously on Oct 3, 2024 Upgraded to Aa1 (sf) Cl. M-1, Upgraded to Ca (sf); previously on May 20, 2011 Downgraded to C (sf) RATINGS RATIONALE The rating actions reflect the current levels of credit enhancement available to the bonds, the recent performance, analysis of the transaction structure, Moody's updated loss expectations on the underlying pool and Moody's revised loss-given-default expectation for each bond. The rating upgrade of Class A-3 is a result of the improving performance of the related pool, and an increase in credit enhancement available to the bond. Class M-1 is currently undercollateralized, which is reflected by a reduction in principal (a write-down). Moody's expectations of loss-given-default assesses losses experienced and expected future losses as a percent of the original bond balance. Principal Methodology The principal methodology used in these ratings was "US Residential Mortgage-backed Securitizations: Surveillance" published in December 2024. Factors that would lead to an upgrade or downgrade of the ratings: Up Levels of credit protection that are higher than necessary to protect investors against current expectations of loss could drive the ratings of the subordinate bonds up. Losses could decline from Moody's original expectations as a result of a lower number of obligor defaults or appreciation in the value of the mortgaged property securing an obligor's promise of payment. Transaction performance also depends greatly on the US macro economy and housing market. Down Levels of credit protection that are insufficient to protect investors against current expectations of loss could drive the ratings down. Losses could rise above Moody's expectations as a result of a higher number of obligor defaults or deterioration in the value of the mortgaged property securing an obligor's promise of payment. Transaction performance also depends greatly on the US macro economy and housing market. Other reasons for worse-than-expected performance include poor servicing, error on the part of transaction parties, inadequate transaction governance and fraud. Finally, performance of RMBS continues to remain highly dependent on servicer procedures. Any change resulting from servicing transfers or other policy or regulatory change can impact the performance of these transactions. In addition, improvements in reporting formats and data availability across deals and trustees may provide better insight into certain performance metrics such as the level of collateral modifications. BEELINE HOLDINGS: CEO Holds 44.7% Stake --------------------------------------- Nicholas Reyland Liuzza Jr., Chief Executive Officer and a director of Beeline Holdings, Inc., disclosed in a Schedule 13D (Amendment No. 3) filed with the U.S. Securities and Exchange Commission that as of July 21, 2025, he beneficially owns 8,201,773 shares of the Company's Common Stock, $0.0001 par value, representing approximately 44.7% of the 18,362,830 shares of Common Stock outstanding as of July 7, 2025. This amount includes 7,978,057 shares held directly and 223,716 shares held by a family trust over which he exercises dispositive and voting control. The total also gives effect to shares of Common Stock underlying Series G Convertible Preferred Stock and Warrants exercisable within 60 days, subject to shareholder approval and price adjustment provisions. Nicholas Reyland Liuzza Jr. may be reached through Michael Harris, Esq. 3001 PGA Blvd, Suite 305 Palm Beach Gardens, FL 33410 Tel: 561-686-3307 A full-text copy of Mr. Liuzza Jr.'s SEC report is available at: https://tinyurl.com/3kumb7k7 About Beeline Holdings Beeline Financial Holdings, Inc. is a trailblazing mortgage fintech transforming the way people access property financing. Through its fully digital, Al-powered platform, Beeline delivers a faster, smarter path to home loans-whether for primary residences or investment properties. Headquartered in Providence, Rhode Island, Beeline is reshaping mortgage origination with speed, simplicity, and transparency at its core. The company is a wholly owned subsidiary of Beeline Holdings and also operates Beeline Labs, its innovation arm focused on next-generation lending solutions. Boca Raton, Florida-based Salberg & Company, P.A., the Company's auditor since 2024, issued a "going concern" qualification in its report dated April 15, 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 and negative cash flows from operations since its inception, has a significant working capital deficit, and is dependent on debt and equity financing. These matters raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $66.5 million in total assets, $17.5 million in total liabilities, and a total stockholders' equity of $49 million. BERRY CORP: Moody's Withdraws 'B3' Corporate Family Rating ---------------------------------------------------------- Moody's Ratings has withdrawn all ratings on Berry Corporation (bry) (Berry), including the B3 corporate family rating, B3-PD probability of default rating, B3 backed senior secured ratings and SGL-3 speculative grade liquidity rating. The outlook at the time of withdrawal was stable. RATINGS RATIONALE Moody's have decided to withdraw the rating(s) following a review of the issuer's request to withdraw its rating(s). Headquartered in Dallas, Texas, Berry Corporation (bry) is a listed independent oil and gas exploration and production company with the majority of its operations focused in California's San Joaquin Basin. Berry also has smaller exploration and production operations in the Uinta Basin of Utah and well intervention services in California, with a focus on the State's growing plugging and abandonment needs. CABELL HUNTINGTON: Moody's Lowers Revenue Bond Rating to Ba1 ------------------------------------------------------------ Moody's Ratings has downgraded Cabell Huntington Hospital, Inc.'s (WV) (Cabell) revenue bond rating to Ba1 from Baa3. The outlook remains negative at the lower rating level. Cabell has $346 million of debt outstanding. The downgrade of Cabell's revenue bond rating to Ba1 is due to very weak liquidity levels. The action also incorporates risk related to a potential breach of the days cash on hand covenant if anticipated Directed Payment Program (DPP) funds are not received by fiscal year-end 2025. Elevated governance risk related to financial strategy and track record is a key driver of this rating action. RATINGS RATIONALE The Ba1 rating is supported by Cabell's leading and stable market position across a broad service area, as well as its role as the primary teaching hospital for Marshall University. Despite improvement in fiscal 2024, Cabell's margins are expected to remain under pressure in the near term due to challenges at St. Mary's, driven in part by a difficult IT conversion and revenue cycle issues. While Cabell has engaged a consultant to identify margin improvement opportunities, execution is likely to take time. Liquidity and cash to debt metrics are particularly strained, with days cash on hand declining to a new low of 50 days as of March 2025. Absent receipt of the state's new DPP funds for fiscal 2025, Cabell will likely breach its days cash on hand covenant, triggering an event of default under its bank agreement. However, the timely receipt of DPP funds is expected, which should result in days cash on hand of approximately 65 days, assuming no additional unforeseen challenges arise. RATING OUTLOOK The negative outlook reflects uncertainty around stabilizing liquidity and maintaining positive cash flow in the mid-single digit range given the organization's recent trackrecord of weak cash flow. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Material strengthening of liquidity relative to operations and debt allowing for increased cushion to days cash covenant -- Durable improvement in operating performance FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Increased risk of covenant violation and potential default -- Inability to stabilize days cash at or above covenant levels -- Failure to stabilize operating cash flow margin at about 4% - 5% PROFILE Cabell Huntington Hospital, a 300+ bed regional referral and teaching hospital for the Marshall University Joan C. Edwards School of Medicine, became part of Marshall Health Network (MHN) on October 1, 2023. MHN (formerly Mountain Health Network) also includes St. Mary's, River's Health (formerly Pleasant Valley Hospital), and University Physicians & Surgeons (Marshall Health), forming an academic health system affiliated with the Marshall School of Medicine. METHODOLOGY The principal methodology used in these ratings was Not-for-profit Healthcare published in October 2024. CAPITOL RADIOLOGY: Hires Johnson Law Group as Legal Counsel ----------------------------------------------------------- Capitol Radiology, LLC seeks approval from the U.S. Bankruptcy Court for the District of Maryland to hire The Johnson Law Group, LLC as its counsel. The firm's services include: (1) provision of general advice and counsel concerning compliance with the requirements of Chapter 11; (2) preparation of any necessary amendments to the Debtor's schedules, statement of financial affairs, and related documents as appropriate; (3) representation of the Debtor in possession in all contested matters. Certain adversary proceedings in this Court will require a separate retainer agreement; (4) representation as appropriate in any related matters in other Courts; (5) provision of advice and counsel concerning the structure of a plan and any required amendments thereto; (6) provision of advice concerning the feasibility of confirmation of a plan and representation in connection with the confirmation process; (7) liaison, consultation, and where appropriate, negotiation with creditors and other parties in interest; (8) review of relevant financial information; (9) review of claims with a view to determining which claims are allowable and in what amounts; (10) prosecution of claims objections, as appropriate; (11) representation at the section 341 meeting of creditors and at any hearings or status conferences in court; and (12) provision of such representations as may be necessary and appropriate to the case. William C. Johnson, Jr., Esq. would charge his regular hourly rate for services, currently $450 per hour. The firm received an initial retainer fee of $7,500. William C. Johnson, Jr., Esq., a member of Johnson Law Group, does not hold or represent any interest that is adverse to the estate, and is a disinterested person within the meaning of 11 U.S.C. 101(14). The firm can be reached through: William C. Johnson, Jr., Esq. The Johnson Law Group, LLC 6305 Ivy Lane, Suite 630 Greenbelt, MD 20770 Telephone: (301) 477-3450 Facsimile: (301) 477-4813 Email: William@JohnsonLG.Law About Capitol Radiology, LLC Capitol Radiology, LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Md. Case No. 25-16550) on July 18, 2025, listing up to $50,000 in assets and $100,001 to $500,000 in liabilities. William C. Johnson, Jr., Esq. at The Johnson Law Group, LLC represents the Debtor as counsel. CINEMEX HOLDINGS: Taps A&G Realty as Real Estate Consultant ----------------------------------------------------------- Cinemex Holdings USA, Inc. and affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ A&G Realty Partners, LLC as real estate consultant and advisor. A&G will provide these services: (a) assist the Debtors with real estate strategy; (b) consult with the Debtors to discuss the Debtors' goals, objectives, and financial parameters in relation to the Debtors' real property leases; (c) provide ongoing advice and guidance related to individual financial and non-financial lease restructuring opportunities; (d) negotiate with the landlords of the Leases on behalf of the Debtors to obtain Lease Modifications acceptable to the Debtors; (e) negotiate with the Landlords and/or other third parties on behalf of the Debtors to obtain Lease Terminations acceptable to the Debtors; (f) negotiate with the Landlords on behalf the Debtors to obtain Early Termination Rights acceptable to the Debtors; and (g) provide regular update reports to the Debtors regarding the status of the Services. A&G shall be compensated at these fees: (a) Monetary Lease Modifications. For each Monetary Lease Modification obtained by A&G on behalf of the Debtors, A&G shall earn and be paid a fee in the amount of 1.5 percent of the Occupancy Cost Savings, per Lease. (b) Non-Monetary Lease Modifications. For each Non-Monetary Lease Modification obtained by A&G on behalf of the Debtors, A&G shall earn and be paid a fee in the amount of $1,000 per Lease. (c) Early Termination Rights. For each Early Termination Right obtained by A&G on behalf of the Debtors, A&G shall earn and be paid a fee of ¼ of one (1) month's Gross Occupancy Cost per Lease. (d) Lease Sales. For each Lease Sale obtained by A&G on behalf of the Debtors and agreed to the Debtors in their sole discretion, A&G shall earn and be paid a fee in the amount of 3 percent of the Gross Proceeds, provided, however, if a Lease is listed for sale and a closing on such Lease Sale does not occur, A&G shall earn and be paid a fee of $500 for such Lease. (e) Landlord Consents. If requested by the Debtors, for each consent obtained by A&G to extend the Debtors' time to assume or reject a lease as a part of any applicable Chapter 11 case, A&G shall earn and be paid a fee in the amount of $500 per Lease. As disclosed in court filings, A & G is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Andy Graiser A&G Realty Partners, LLC 445 Broadhollow Road, Suite 420 Melville, NY 11747 Direct Dial: (631) 465-9506 Mobile: (516) 946-8982 Email: andy@agrep.com About Cinemex Holdings USA Cinemex Holdings USA, Inc. is a holding company for cinema operations including CMX Cinema. Cinemex Holdings and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-17559) on June 30, 2025. In its petition, Cinemex Holdings disclosed under $50,000 in both assets and liabilities. Judge Laurel M. Isicoff handles the cases. The Debtors tapped Quinn Emanuel Urquhart & Sullivan LLP as counsel and GlassRatner Advisory & Capital Group LLC as financial advisor. CITI CONNECT: Plan Exclusivity Period Extended to Oct. 25, 2025 --------------------------------------------------------------- Judge Lisa G. Beckerman of the U.S. Bankruptcy Court for the Southern District of New York extended Citi Connect LLC's exclusive periods to file a plan of reorganization and obtain acceptance thereof to October 25 and December 24, 2025, respectively. As shared by Troubled Company Reporter, the Debtor claims that it has made good faith progress toward reorganization by, among other things, making progress towards establishing a claims bar date, retaining its professionals and operating as a Debtor in Chapter 11. Further, the Debtor continues to explore new avenues in which to expand its business profitability. Since filing this Chapter 11 Case, the Debtor has continued to pay substantially all of its undisputed, post-petition expenses and invoices in the ordinary course of business or as otherwise provided by order of the Court. The Debtor explains that extending the Exclusive Periods by one hundred twenty days will ensure that the Debtor and its creditors are able to capitalize on the progress they have made to date in this Chapter 11 case. Further, the requested extension is well within the range of similar relief granted by courts under similar circumstances. About Citi Connect Citi Connect LLC is a full-service turnkey contractor specializing in the design, engineering, construction, installation, and testing of communication systems. The Company offers a comprehensive range of services, including fiber and wireless solutions, aerial and underground construction, and telecommunications installations across various industries. Their solutions cover voice and data services, data centers, cell sites, as well as both inside and outside plant installations. Citi Connect LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-10369) on February 27, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Bankruptcy Judge Lisa G. Beckerman handles the case. The Debtor is represented by: Nicholas A. Pasalides, Esq. ECKERT SEAMANS CHERIN & MELLOTT, LLC 10 Bank Street, Suite 700 White Plains, NY 10606 Tel: (914) 286-2851 Fax: (914) 949-5424 E-mail: npasalides@eckertseamans.com CLAIRE'S STORES: Skips June, July Interest Payments --------------------------------------------------- Reshmi Basu of Bloomberg News reports that Claire's Stores Inc. is nearing a Chapter 11 bankruptcy filing after missing rent payments on certain locations in June and July, according to sources familiar with the matter. While the filing could come as early as this week, the timeline may shift as the retailer continues to finalize its plans, said the sources, who requested anonymity due to the confidential nature of the discussions, according to the report. The teen accessories chain has been weighing restructuring strategies, including a potential sale, as it struggles with strained cash flow and a substantial debt load, the report states. About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- is a specialty retailer of jewelry, accessories, and beauty products for young women, teens, "tweens," and kids. Through the Claire's brand, the Claire's Group has a presence in 45 nations worldwide, through a total combination of over 7,500 Company-owned stores, concessions locations, and franchised stores. Headquartered in Hoffman Estates, Illinois, the Company began as a wig retailer by the name of "Fashion Tress Industries" founded by Rowland Schaefer in 1961. In 1973, Fashion Tress Industries acquired the Chicago-based Claire's Boutiques, a 25-store jewelry chain that catered to women and teenage girls. Following that acquisition, Fashion Tress Industries changed its name to "Claire's Stores, Inc." and shifted its focus to a full line of fashion jewelry and accessories. In 2007, the Company was taken private and acquired by investment funds affiliated with, and co-investment vehicles managed by, Apollo Management VI, L.P. Claire's Group employs approximately 17,000 people globally. Claire's Stores, Inc., and 7 affiliates sought Chapter 11 protection (Bankr. D. Del. Case No. 18-10584) on March 19, 2018, after reaching terms of a balance sheet restructuring with their first lien lenders and sponsor Apollo Global Management, LLC. As of Oct. 28, 2017, Claire's Stores reported $1.98 billion in total assets against $2.53 billion in total liabilities. The Hon. Brendan Linehan Shannon is the case judge. The Debtors tapped Weil, Gotshal & Manges LLP as their bankruptcy counsel; Richards, Layton & Finger, P.A. as local counsel; FTI Consulting as restructuring advisor; Lazard Freres & Co. LLC as investment banker; Hilco Real Estate, LLC as real estate advisor; and Prime Clerk as claims agent and administrative advisor. Andrew R. Vara, Acting U.S. Trustee for Region 3, appointed seven creditors to serve on an official committee of unsecured creditors. The Committee retained Cooley LLP, as counsel, and Bayard, P.A., as co-counsel. CLEANBAY RENEWABLES: Aug. 20, 2025 Public Sale Auction Set ---------------------------------------------------------- First-priority secured creditor, Sustainable Growth Fund II SCSP, SICAV-SIF, will conduct a public auction on Aug. 20, 2025, at 1:00 p.m. (Pacific Time) a the offices of Strading Yocca Carlson & Rauth LLP, 101100 Santa Monica Boulevard, Suite 1450, Los Angeles, California 90067 and virtually by zoom or similar software, for the sale of the assets of CleanBay Renewables Inc. and its subsidiaries CleanBay BioFuels Inc., CleanBay Sussex I LLC, CleanBay Somerset I LLC, CleanBay Westover LLC, AgLand Renewables LLC and Darwin DevCo LLC ("Debtors"). As of May 9, 2025, the principal amount, together with all accrued and unpaid interest, fees and other expenses owed by the Debtors to the Secured Party is EUR24,374,925 and continues to accrue interests, fees and expenses after that date. Further information regarding the sale, contact Fred Neufeld at Strading by email at fneufeld@stradinglaw.com or visit https://www.DailyDAC.com/ CleanBay Renewables Inc. is an enviro-tech and renewable energy company. COLOSSUS ACQUIRECO: Moody's Affirms Ba1 Rating on Secured Term Loan ------------------------------------------------------------------- Moody's Ratings affirmed Colossus AcquireCo LLC's (Colossus) Ba1 senior secured term loan rating and downgraded Colonial Enterprises, Inc.'s (CEI) long term issuer rating to Baa3 from A3, senior unsecured notes rating to Baa3 from A3, and short-term commercial paper rating to P-3 from P-2. Moody's also downgraded Colonial Pipeline Company's (CPC) senior unsecured notes rating to Baa3 from A3. The rating outlook was changed to stable for both CEI and CPC (together "Colonial") from ratings under review. Colossus' rating outlook remains stable. This concludes Moody's ratings review on Colonial that was initiated on April 04, 2025. Colossus is a holding company that was formed by Brookfield Infrastructure Partners L.P. (BIP, unrated) and its institutional partners (collectively, "Brookfield Infrastructure") to acquire Colonial. Colossus successfully completed the acquisition on July 31, 2025 for $9.1 billion, including $2.86 billion of pre-acquisition debt at Colonial. Upon closing, CEI became a wholly owned subsidiary of Colossus, while CPC will remain the principal operating subsidiary of CEI. RATINGS RATIONALE The downgrade of CEI and CPC's ratings to Baa3 reflects the sharp increase in consolidated debt and financial leverage stemming from the incremental holding company debt at Colossus. The same assets will now support $2.9 billion of additional debt that Colossus borrowed to acquire Colonial. Consequently, there will be reduced financial flexibility (although Colonial will have access to good liquidity). The downgrade also reflects the consolidated entity's greater structural complexity, higher total interest costs, and the new ownership and financial policies of Brookfield Infrastructure. Moody's expects consolidated leverage to decline towards 5x over time, based on management's commitment to reduce leverage, anticipated earnings growth and scheduled term loan amortizations. Colossus' overall Baa3 credit quality is supported by Colonial's very strong business profile, long operating history and stable cash flow. Colonial is the largest and lowest cost refined products pipeline in the eastern US that benefits from strong end-market demand, a diversified customer base comprised of refiners, marketers, airports and government agencies, and a fee-based revenue model having minimal direct commodity price exposure. Colossus' credit profile is constrained by its high consolidated financial leverage, reliance on a single pipeline for the majority of its cash flow, and exposure to the risks of a gradual decrease in refined products demand over time. Colonial's Baa3 senior unsecured debt ratings reflect the overall Baa3 credit quality of Colossus, Colonial's priority position within the consolidated capital structure and that Colonial will continue to retain approximately half (which will increase over time) of the debt of the consolidated entity. Colossus' senior secured term loan is rated Ba1, based on Moody's standard notching practices for investment grade rated entities, and the subordinated position of the holding company debt within the consolidated capital structure. The Colossus term loan is structurally subordinated and does not have any upstream guarantee from CEI or CPC and is secured only by Colossus' equity interests in Colonial without any direct claim over Colonial's assets. CEI and CPC's Baa3 senior unsecured notes ratings are at parity reflecting cross-guarantee arrangements between the two entities such that the debt at each entity rank pari passu. There are no change of control triggers and no permitted distribution restrictions under Colonial's notes indentures. Moody's expects Colossus will maintain good liquidity through 2026 based on Colonial's history of reliable free cash flow generation, its anticipated earnings growth and access to an undrawn $500 million revolving credit facility. Moody's assumed that Colossus will have unfettered access to Colonial's free cash flow and revolving credit facility within the bounds of the revolver's covenants. Concurrently with the closing of the acquisition, CEI entered into a new revolving credit agreement replacing the prior revolving facility. The new revolver has a five year maturity (expires in 2030) and has only one financial covenant (a consolidated net leverage test), which the company should be able to meet comfortably with increasing compliance margin over time. Colossus' term loan and Colonial's senior notes are not subject to maintenance covenant requirements. CEI's $500 million commercial paper (CP) program will continue to be fully backstopped by the new revolving credit facility. Moody's also expects that CPC's October 2025 notes maturity will be refinanced in the very near future. Colossus has already entered into interest rate swap agreements to protect its floating rate exposure on the term loan. Colossus' stable outlook is based on Colonial's predictable cash flow and Moody's expectations of declining leverage through 2027, primarily through organic earnings growth. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS To consider an upgrade, Moody's would look for meaningful debt reduction, a track record of consistent financial policies, and management delivering its planned EBITDA and asset growth over the medium term. Colossus will also need to sustain the consolidated debt/EBITDA below 5x and maintain high capacity utilization without facing new rate challenges from its customers. A downgrade could occur if Colossus' consolidated debt/EBITDA rises above 6x or the company sustains a significant operational disruption. The rating could also be downgraded if Colossus' interest coverage falls below 2x based on its standalone debt and distributions from its operating subsidiaries. Weak liquidity, or debt-funded growth, acquisitions or shareholder distributions could also trigger a downgrade. The principal methodology used in these ratings was Midstream Energy published in February 2022. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. COMPAC USA: Taps Guillermo Roca as Ordinary Course Professional --------------------------------------------------------------- Compac USA Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Guillermo Roca, PLLC as professional utilized in the ordinary course of business. The firm will provide these services: a. Corporate Matters: The firm provides up to six (6) hours per month (and receive $2,100) for coordination and support on corporate legal matters. This includes, but is not limited to, legal consultations, conducting legal research, drafting and reviewing documents, participating in meetings (both in-person and virtual), and assisting with negotiations. I also conduct legal research to address specific issues, analyze risks, and deliver actionable solutions. A significant portion of my work involves drafting, reviewing, and revising corporate documents, such as contracts, agreements, policies, and other materials critical to the company's operations. b. Litigation Support: Additionally, the firm allocates up to six (6) hours per month (and receive an additional $2,100) to provide coordination and support specifically related to litigation and contested matters. This mainly includes coordinating with external litigation counsel to ensure alignment in strategy and communication. When necessary, the counsel attends court hearings, mediations, or settlement discussions to provide input and assist litigation counsel. The firm traditionally receives, in the ordinary course of business, a total fee of $4,200 per month. As disclosed in the court filings, Guillermo Roca PLLC does not hold or represent any interest adverse to the Debtor or the estate. The firm can be reached through: Guillermo Roca Benítez, Esq. Guillermo Roca PLLC 201 Alhambra Circle, Suite 1060 Coral Gables, FL 33134 Telephone: (954) 381-6610 Email: groca@guillermoroca.com About Compac USA Inc. Compac USA Inc. is a Florida entity incorporated in 2002 to market and sell Compac stone products. The Debtor specializes in obsidian, terrazzo, and quartz surfaces for architecture and design. The Debtor maintains showrooms in Miami, Florida and New York, New York. Compac USA sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-23372) on December 21, 2024. Francisco A. Sanchis-Brines, president of Compac USA, signed the petition. As of November 24, 2024, Compac USA reported total assets of $5,342,926 and total liabilities of $739,872. Judge Corali Lopez-Castro handles the case. The Debtor is represented by Joseph A. Pack, Esq. at Pack Law. CONFLUENCE CORP: Seeks to Hire Choi & Ito as Bankruptcy Counsel --------------------------------------------------------------- Confluence Corporation seeks approval from the U.S. Bankruptcy Court for the District of Hawaii to employ Choi & Ito to handle its Chapter 11 case. The hourly rates of the firm's attorneys are: Chuck C. Choi $500 Allison A. Ito $350 Prior to the petition date, the firm received $12,823.76 from the Debtor. Chuck Choi, Esq., an attorney at Choi & Ito, 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: Chuck C. Choi, Esq. Choi & Ito 700 Bishop Street, Suite 1107 Honolulu, HI 96813 Telephone: (808) 533-1877 Facsimile: (808) 566-6900 Email: cchoi@hibklaw.com About Confluence Corporation Confluence Corporation doing business as Regal Service Company sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Hawaii Case No. 25-00623) on July 17, 2025, listing between $1 million and $10 million in both assets and liabilities. Christopher W. Caliedo, president of Confluence, signed the petition. Judge Robert J. Farris oversees the case. Chuck C. Choi, Esq., at Choi & Ito, represents the Debtor as legal counsel. CONTRACT MANAGED: Gets Extension to Access Cash Collateral ---------------------------------------------------------- Contract Managed Services, LLC received a three-month extension from the U.S. Bankruptcy Court for the Western District of Kentucky, Louisville Division to use cash collateral. The court order authorized the Debtor to use cash collateral for 90 days post-order in accordance with its budget. Spending over 10% beyond the budget or rolling over unused budget items requires approval from Fifth Third Bank, N.A. Secured creditors including Fifth Third Bank, N.A. and the U.S. Small Business Administration will be granted replacement liens on all property acquired by the Debtor (excluding Chapter 5 avoidance claims or actions) similar to their pre-bankruptcy collateral as adequate protection for the Debtor's use of their cash collateral. In addition, the secured creditors are entitled to receive superpriority administrative claims. Both the replacement liens and superpriority administrative claims are subordinate to the fees of the Subchapter V trustee. As additional protection, the Debtor was ordered to pay $2,212.50 per month to Fifth Third Bank. Payment starts this month. Events of default under the court order include the Debtor's failure to comply with the terms of the order; failure to make adequate protection payments; dismissal or conversion of its Chapter 11 case; appointment of a Chapter 11 trustee; cessation of business; and entry of a court order determining that the Debtor does not have sufficient cash or cash collateral to continue its business. The Debtor has seven days to cure the default. As of the petition date, the Debtor's bankruptcy estate had cash on hand and in deposit accounts totaling approximately $25,000 and total accounts receivable of approximately $84,900.00. The Debtor maintains no inventories for sale other than supply materials for warehousing operations. Fifth Third Bank and SBA assert an interest in the cash collateral on account of the loans made to the Debtor. As of the petition date, the Debtor owed $300,00 to Fifth Third Bank and $1,360,900 to SBA. About Contract Managed Services Contract Managed Services, LLC provides third-party logistics services including contract packaging, order fulfillment, warehousing, and distribution. Founded in 1996, the company now operates over 100,000 square feet of modern facilities in Louisville, Kentucky. It is privately owned and managed by professionals with decades of experience in packaging and distribution. Contract Managed Services sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ky. Case No. 25-31420) on June 14, 2025. In its petition, the Debtor reported estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. Judge Joan A. Lloyd handles the case. The Debtor is represented by Charity S. Bird, Esq., at Kaplan Johnson Abate & Bird, LLP. CORE F&B: Hires Quilling Selander Lownds as Bankruptcy Counsel -------------------------------------------------------------- Core F&B PFV LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Quilling, Selander, Lownds, Winslett & Moser, P.C. as general counsel. The firm will render these services: (a) furnish legal advice to the Debtor with regard to its powers, duties and responsibilities as a debtor-in-possession and the continued management of its affairs and assets under chapter 11; (b) prepare, for and on behalf of the Debtor, all necessary applications, motions, answers, orders, reports and other legal papers; (c) prepare a subchapter V plan of reorganization and disclosures and other services incident thereto; (d) investigate and prosecute preference and fraudulent transfers actions arising under the avoidance powers of the Bankruptcy Code; and (e) perform all other legal services for the Debtor which may be necessary. The firm will be paid at these rates: Shareholders $385 to $500 per hour Associates $275 to $385 per hour Paralegals $75 to $140 per hour The firm received a retainer from the Debtor in the amount of $16,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. John Paul Stanford, Esq., a partner at Quilling, Selander, Lownds, Winslett & Moser, 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: John Paul Stanford, Esq. Quilling, Selander, Lownds, Winslett & Moser, P.C. 2001 Bryan Street, Suite 1800 Dallas, TX 75201 Tel: (214) 880-1851 Fax: (214) 871-2111 Email: jstanford@qslwm.com About Core F&B PFV LLC Core F&B PFV LLC, which operates Renny's Bar & Grill, a food service and drinking establishment located in Dallas, Texas. Core F&B PFV LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-32655) on July 16, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Michelle V. Larson handles the case. The Debtor is represented by John Paul Stanford, Esq. at Quilling, Selander, Lownds, et al. COZY HARBOR: Taps Opus Consulting Partners as Financial Advisor --------------------------------------------------------------- Cozy Harbor Seafood, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Maine to hire Opus Consulting Partners, LLC as financial advisor. The firm's services include: (a) financial analysis and cash flow forecasting, including creating, maintaining, and updating cash budgets for cash collateral use, pro formas, and similar cash flow reports and analysis. (b) strategic advisory services, including regarding restructuring and operational decisions of the Debtors. (c) assistance with weekly and monthly reporting, preparation of schedules and statements of financial affairs, and other financial advisory support as needed to assist the Debtors in meeting their obligations as debtors-in-possession. (d) Communication with, as needed, creditors, vendors, lenders, and other parties in interest during the cases, including regarding financial performance, budgeting, and related matters as may arise. The firm's professionals will be paid at these hourly rates: Principal, Senior Advisor $300 Senior Consultant $250 Consultant $200 Analyst $150 Bookkeeping $110 In addition, the firm will seek reimbursement for expenses incurred. Opus held a retainer of $25,000 as of the Petition Date. Casey Skovran, a senior consultant at Opus Consulting Partners, 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: Casey Skovran Opus Consulting Partners LLC 1700 Snsom Street Suite 200 Philidelphia, PA 19019 Telephone: (207) 619-1899 Email: info@opuscg.com About Cozy Harbor Seafood Inc. Cozy Harbor Seafood, Inc. is the oldest and most experienced processor of lobster in the United States. It is a primary processor with its main processing plant in Portland, Maine. In business since 1980, Cozy Harbor has established itself in the U.S. and world markets as the most respected source of high-quality seafood products from Maine. Cozy Harbor Seafood sought Chapter 11 protection (Bankr. D. Maine Case No. 25-20160) on July 1, 2025, listing between $1 million and $10 million in both assets and liabilities. Judge Michael A. Fagone oversees the case. D. Sam Anderson, Esq., at Bernstein Shur Sawyer & Nelson is the Debtor's legal counsel. CUSTOM CONCRETE: Seeks to Use Cash Collateral --------------------------------------------- Custom Concrete Solutions, LLC asked the U.S. Bankruptcy Court for the Western District of Pennsylvania for authority to use cash collateral to maintain business operations. The U.S. Small Business Administration holds a first priority lien on a wide range of assets, including inventory, equipment, accounts receivable, and deposit accounts, as secured by a UCC-1 Financing Statement filed in 2020. The cash collateral in question arises primarily from accounts receivable and deposits covered under this lien. Wells Fargo Vendor Financial Services, LLC holds second and third priority liens, secured through UCC filings in 2021 and 2022, on specific equipment -- a 2021 Bobcat Compact Track Loader and a Bobcat Mini Excavator -- and their related proceeds. The Debtor asserted that use of this cash collateral is critical to maintain operations, pay necessary expenses, and preserve the business as a going concern. Without this access, creditors and the estate would suffer losses. The Debtor proposed adequate protection payments to all secured creditors, consistent with a Chapter 11 reorganization plan to be submitted. A hearing on the matter is scheduled for August 22. About Custom Concrete Solutions Custom Concrete Solutions, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-21226) on May 12, 2025. In the petition signed by Matt Leech, managing member, the Debtor disclosed $500,000 in assets and $1 million in liabilities. Judge Gregory L. Taddonio oversees the case. Brian C. Thompson, Esq., at Thompson Law Group, P.C., represents the Debtor as legal counsel. DALLAS PARTY: Seeks to Hire Hayward PLLC as Bankruptcy Counsel -------------------------------------------------------------- Dallas Party Bike LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Hayward PLLC to handle its bankruptcy proceedings. Hayward's standard hourly rates are: Melissa Hayward $500 Associates and Other Firm Attorneys $275 - $500 Paralegal $215 The firm will be paid a retainer in the amount of $22,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Ms. Hayward disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Melissa S. Hayward, Esq. HAYWARD PLLC 10501 North Central Expy., Suite 106 Dallas, TX 75231 Phone: (972) 755-7100 Email: MHayward@HaywardFirm.com About Dallas Party Bike LLC Dallas Party Bike LLC, likely operating pedal-powered tour vehicles for entertainment and transportation services in Dallas, Texas. Dallas Party Bike LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-32509) on July 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 Debtors are represented by Melissa S. Hayward, Esq. at Hayward PLLC. DE'NSITE INC: Janice Seyedin Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 11 appointed Janice Seyedin as Subchapter V trustee for De'nsite Inc. Ms. Seyedin will be paid an hourly fee of $295 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Seyedin declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. About De'nsite Inc. De'nsite Inc. conducts business under the name Harold's Chicken of Homewood, a fast-food restaurant franchise specializing in fried chicken. De'nsite sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-11428) on July 27, 2025. In its petition, the Debtor reported estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. Judge Janet S. Baer handles the case. The Debtor is represented by Saulius Modestas, Esq., at Modestas Law Offices, P.C. DESAI HOLDINGS: Seeks to Hire Havkin & Shrago as Legal Counsel -------------------------------------------------------------- Desai Holdings, USA LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire Havkin & Shrago, Attorneys at Law, as general insolvency counsel. The firm will render these services: a. represent the Debtor at its Initial Debtor Interview; b. represent the Debtor at its meeting of creditors pursuant to Bankruptcy Code Sec. 341(a), or any continuance thereof; c. represent the Debtor at all hearings before the United States Bankruptcy Court involving the Debtor as a Chapter 11 debtor, debtor in possession, and as a reorganized debtor, as applicable; d. advise the Debtor regarding matters of bankruptcy law, including the Debtor's rights and remedies with respect to the Debtor's assets and the claims of its creditors: e. prepare on behalf of the Debtor, as Chapter 11 debtor and debtor in possession, is applicable, all necessary applications, motions, orders, and other legal papers; f. advise the Debtor regarding matters of bankruptcy law, including the Debtor's rights and remedies with respect to the Debtor's assets and the claims of the creditors; g. represent the Debtor with regard to all contested matters; h. represent the Debtor with regard to the preparation of a plan of reorganization and the negotiation and implementation of a plan of reorganization; i. analyze any secured, priority, or general unsecured claims that have been filed in the Debtor's bankruptcy case; j. negotiate with the Debtor's secured and unsecured creditors regarding the amount and payment of their claims; k. object to claims as may be appropriate; and l. perform all other legal services. The firm will be paid as follows: Stella Havkin, Partner $575 per hour David Jacob, Associate $395 per hour Laura Bach, Paralegal $175 per hour In addition, the firm will seek reimbursement for its out-of-pocket expenses. The retainer is $20,000. Stella Havkin, Esq., a partner at Havkin & Shrago, Attorneys at Law, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Stella Havkin, Esq. Havkin & Shrago, Attorneys at Law 5950 Canoga Avenue, #400 Woodland Hills, CA 91367 Tel: (818) 999-1568 Fax: (818) 293-2414 Email: stella@havkinandshrago.com About Desai Holdings, USA LLC Desai Holdings, USA LLC, doing business as R-Bar, operates a bar and restaurant in downtown Long Beach, California. The establishment offers craft beers, cocktails, and a food menu that includes items such as chicken wings, beef bulgogi tacos, and chicken curry with rice. Desai Holdings, USA LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-15524) on June 30, 2025. In its petition, the Debtor reports total assets of $175,000 and total liabilities of $2,171,294. Honorable Bankruptcy Judge Barry Russell handles the case. The Debtors are represented by Stella Havkin, Esq. at STELLA HAVKIN. DOCKSIDE AT VENTURA: Aaron Cohen Named Subchapter V Trustee ----------------------------------------------------------- The U.S. Trustee for Region 21 appointed Aaron Cohen, Esq., a practicing attorney in Jacksonville, Fla., as Subchapter V trustee for Dockside at Ventura Condominium Association, Inc. Mr. Cohen will be paid an hourly fee of $315 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Cohen declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Aaron R. Cohen, Esq. P.O. Box 4218 Jacksonville, FL 32201 Tel: (904) 389-7277 Email: aaron@arcohenlaw.com About Dockside at Ventura Condominium Association Dockside at Ventura Condominium Association, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04636) on July 25, 2025, with $1,000,001 to $10 million in assets and liabilities. Judge Grace E. Robson presides over the case. Justin M. Luna, Esq., at Latham, Luna, Eden & Beaudine, LLP represents the Debtor as legal counsel. DOUBLE T STEEL: Melissa Haselden Named Subchapter V Trustee ----------------------------------------------------------- The U.S. Trustee for Region 7 appointed Melissa Haselden, Esq., at Haselden Farrow, PLLC as Subchapter V trustee for Double T Steel, LLC. Ms. Haselden will be paid an hourly fee of $595 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Meanwhile, the support staff working under her direct supervision will be paid $175 per hour. Ms. Haselden declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Melissa A. Haselden, Esq. Haselden Farrow, PLLC 700 Milam, Suite 1300 Pennzoil Place Houston, TX 77002 Telephone: (832) 819-1149 Facsimile: (866) 405-6038 mhaselden@haseldenfarrow.com About Double T Steel LLC Double T Steel, LLC is a Houston-based company likely operating in the steel industry. Double T Steel filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Texas Case No. 25-34239) on July 26, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge Jeffrey P. Norman handles the case. The Debtor is represented by Reese W. Baker, Esq. at Baker & Associates. DOUBLE T: Gets Interim OK to Use Cash Collateral Until Aug. 27 -------------------------------------------------------------- Double T Steel, LLC got the green light from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to use cash collateral. The court's order approved the Debtor's interim use of cash collateral to pay the expenses set forth in its budget until the final hearing on August 27. No rent is authorized except for one payment of $7,500. As adequate protection=, creditors with liens or security interests in the cash collateral including the U.S. Small Business Administration and local taxing authorities will continue to have the same liens and security interests in cash collateral generated after the Debtor's Chapter 11 filing. In addition, the Debtor was ordered to keep the secured creditors' collateral insured. The Debtor has identified the U.S. Small Business Administration and local taxing authorities such as Harris County, Houston ISD, Houston Community College System, and City of Houston as the primary creditors, which may assert liens on its assets and cash collateral. About Double T Steel LLC Double T Steel LLC is a Houston-based company likely operating in the steel industry. Double T Steel sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-34239) on July 26, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge Jeffrey P. Norman handles the case. The Debtor is represented by Reese W. Baker, Esq., at Baker & Associates. DOUBLESHOT HOLDINGS: Taps Bleakley Bavol Denman Grace as Attorney ----------------------------------------------------------------- Doubleshot Holdings seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire Bleakley Bavol Denman & Grace as attorney. The firm services include: a. analyzing the financial situation, and rendering advice and assistance to the Debtor in determining legal options under Title 11, United States Code; b. advising the Debtor with regard to the powers and duties of the Debtor and as Debtor-in-possession in the continued operation of the business and management of the property of the estate; c. preparing and filing of the petition, schedules of assets and liabilities, statement of affairs, and other documents as required by the Court; d. representing of the Debtor at the Section 341 Meeting of Creditors; e. giving the Debtor legal advice with respect to its powers and duties as Debtor and as Debtor-in-possession in the continued operation of its business and management of its property, if appropriate; f. advising the Debtor with respect to its responsibilities in complying with the United States Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; g. preparing, on behalf of your Applicant, necessary motions, pleadings, applications, answers, orders, complaints, and other legal papers and appear on hearings thereon; h. protecting the interest of the Debtor in all matters pending before the court; i. representing the Debtor in negotiation with its creditors in the preparation of the Chapter 11 Plan; and j. performing all other legal services for Debtor as Debtor-in-Possession which may be necessary herein, and it is necessary for Debtor as Debtor-in-Possession to employ this attorney for such professional services. The firm will be paid at $425 per hour. Prior to the commencement of the bankruptcy case the firm was paid an advance fee of $16,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Samantha L. Dammer, Esq., a partner at Bleakley Bavol Denman & Grace, 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: Samantha L. Dammer, Esq. Bleakley Bavol Denman & Grace 15316 N. Florida Avenue Tampa, FL 33613 Tel: (813) 221-3759 Fax: (813) 221-3198 Email: sdammer@bbdglaw.com About Doubleshot Holdings Doubleshot Holdings sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04915) on July 18, 2025. In the petition signed by Mark Krajcir, managing member, the Debtor disclosed up to $100,000 in assets and up to $1 million in liabilities. Judge Roberta A. Colton oversees the case. Samantha L. Dammer, Esq., at Bleakley Bavol Denman & Grace, represents the Debtor as legal counsel. Servis First Bank, as Lender, is represented by: Lara Roeske Fernandez, Esq. TRENAM, KEMKER, SCHARF, BARKIN, FRYE, O'NEILL & MULLIS, P.A. 101 East Kennedy Boulevard, Suite 2700 Tampa, Florida 33602 Tel: (813) 223-7474 Fax: (813) 229-6553 Email: LFernandez@trenam.com EISNER BROS: Seeks to Tap Westerman Ball as Bankruptcy Counsel -------------------------------------------------------------- Eisner Bros. Realty Corp. seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire Westerman Ball Ederer Miller Zucker & Sharfstein, LLP as bankruptcy counsel. The firm's services include: a. administering these chapter 11 cases and the Debtor's affairs while in chapter 11, including all issues arising from or impacting the Debtor in these chapter 11 proceedings; b. advising the Debtor with respect to its duty as a Debtor under the Bankruptcy Code; c. preparing on behalf of the Debtor of all necessary applications, motions, orders, reports and other legal papers; d. appearing in Bankruptcy Court to represent the interests of the Debtor; e. representing the interests of the Debtor in all aspects and phases of the potential sale or other disposition of the Property; f. negotiating, formulating, and drafting any plan of reorganization or liquidation and matters related thereto; g. advising and guiding the Debtor with respect to any transfer, pledge, conveyance, sale or other liquidation of its assets; h. conducting such investigation, if any, as the Debtor may desire concerning, among other things, the assets, liabilities, financial condition and operations of the Debtor that may be relevant to these cases, including the validity, extent, priority, and amount of alleged secured and unsecured claims and liens; i. commencing and prosecuting adversary proceedings as may be necessary and appropriate; and j. such other matters as may be necessary and appropriate in the context of the Debtor's chapter 11 case. The firm will be paid at these rates: Partners and counsel $495 to $795 per hour Associates $365 to $600 per hour Paraprofessionals $275 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Thomas Draghi, a partner at Westerman Ball Ederer Miller Zucker & Sharfstein 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: Thomas A. Draghi, Esq. Westerman Ball Ederer Miller Zucker & Sharfstein LLP 1201 RXR Plaza Uniondale, NY 11556 Tel: (516) 622-9200 E-mail: tdraghi@westermanllp.com About Eisner Bros. Realty Corp. Eisner Bros. Realty Corp. is a single asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). Eisner Bros. Realty Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-41389) on March 25, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. The Debtor is represented by Joshua R. Bronstein, Esq. at JOSHUA R. BRONSTEIN & ASSOCIATES, PLLC. EMBER DRIVE CV2021: Case Summary & One Unsecured Creditor --------------------------------------------------------- Debtor: Ember Drive CV2021 Pledgor LLC 8 Bond Street, Suite 100 Great Neck, NY 11021 Business Description: Ember Drive CV2021 Pledgor LLC is a real estate entity whose primary asset is the property located at 3000 Ember Drive, Decatur, Georgia. Chapter 11 Petition Date: August 4, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-72990 Judge: Hon. Alan S Trust Debtor's Counsel: Heath S. Berger, Esq. BFSNG LAW GROUP, LLP 6851 Jericho Turnpike, Suite 250 Syosset, NY 11791 Tel: 516-747-1136 E-mail: hberger@bfslawfirm.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $10 million to $50 million The petition was signed by Matthew R. Florio as manager. CAF Bridge Borrower WF-N, LLC, c/o CoreVest American Finance Lender LLC, was listed as the sole unsecured creditor with a $31.84 million claim. The creditor is a pledgor or guarantor of a mortgage secured by 3000 Ember Drive, Decatur, Georgia. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/HMCDW7Y/Ember_Drive_CV2021_Pledgor_LLC__nyebke-25-72990__0001.0.pdf?mcid=tGE4TAMA EVALINA LLC: Michael Markham Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 21 appointed Michael Markham, Esq., as Subchapter V trustee for Evalina LLC. Mr. Markham, a partner at Johnson Pope Bokor Ruppel & Burns, LLP, will be paid an hourly fee of $350 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Markham declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Michael C. Markham, Esq. Johnson Pope Bokor Ruppel & Burns, LLP 401 E. Jackson Street, Suite 3100 Tampa, FL 33602 Phone: (727) 480-5118 Mikem@jpfirm.com About Evalina LLC Evalina LLC, doing business as Ixchel Skin and Body Medical Spa, provides cosmetic and aesthetic services across facial, body, and hair treatments. Based in Lutz, Florida, the Company offers laser procedures, microneedling, injectables, IV therapy, body contouring, hair restoration, and skincare treatments. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-05306) on July 30, 2025, with $1 million to $10 million in assets and liabilities. Janice B. Huckaby, manager, signed the petition. Judge Catherine Peek McEwen presides over the case. Harley E. Riedel, Esq., at Stichter, Riedel, Blain, & Postler P.A. represents the Debtor as legal counsel. EYM CAFE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: EYM Cafe of Texas LLC d/b/a Panera Bread 4925 N O'Connor Rd Irving, TX 75062 Business Description: EYM Cafe of Texas LLC, doing business as Panera Bread, operated a group of Panera Bread franchise locations in Texas. The Company was part of EYM Group, a multi-brand restaurant franchisee based in Irving, Texas. Chapter 11 Petition Date: August 2, 2025 Court: United States Bankruptcy Court Eastern District of Texas Case No.: 25-42271 Judge: Hon. Brenda T. Rhoades Debtor's Counsel: Howard Marc Spector, Esq. SPECTOR & COX, PLLC 12770 Coit Rd Suite 850 Dallas TX 75251 Tel: (214) 365-5377 E-mail: hspector@spectorcox.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $10 million to $50 million The petition was signed by Eduardo Diaz as manager. 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/TSCATWA/EYM_Caf_of_Texas_LLC__txebke-25-42271__0001.0.pdf?mcid=tGE4TAMA FALCON CONLEY CV20 LLC: Case Summary & Six Unsecured Creditors -------------------------------------------------------------- Debtor: Falcon Conley CV20 LLC 8 Bond Street, Suite 100 Great Neck, NY 11021 Business Description: Falcon Conley CV20 LLC is a single-asset real estate entity that owns property located at 950 Conley Road SE in Atlanta, Georgia. Chapter 11 Petition Date: August 4, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-72987 Judge: Hon. Louis A Scarcella Debtor's Counsel: Heath S. Berger, Esq. BFSNG LAW GROUP, LLP 6851 Jericho Turnpike, Suite 250 Syosset, NY 11791 Tel: 516-747-1136 E-mail: hberger@bfslawfirm.com Total Assets: $0 Total Liabilities: $31,049,400 The petition was signed by Matthew R. Florio as manager. A full-text copy of the petition, which includes a list of the Debtor's six unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/BDYMGFQ/Falcon_Conley_CV20_LLC__nyebke-25-72987__0001.0.pdf?mcid=tGE4TAMA FALCON CONLEY CV20: Case Summary & One Unsecured Creditor --------------------------------------------------------- Debtor: Falcon Conley CV20 Pledgor LLC 8 Bond Street, Suite 100 Great Neck, NY 11021 Business Description: Falcon Conley CV20 Pledgor LLC is a single- asset real estate entity that owns property at 950 Conley Road SE in Atlanta, Georgia. Chapter 11 Petition Date: August 4, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-72988 Judge: Hon. Louis A. Scarcella Debtor's Counsel: Heath S. Berger, Esq. BFSNG LAW GROUP, LLP 6851 Jericho Turnpike, Suite 250 Syosset, NY 11791 Tel: 516-747-1136 E-mail: hberger@bfslawfirm.com Total Assets: $0 Total Liabilities: $30,390,000 The petition was signed by Matthew R. Florio as manager. The Debtor listed CAF Bridge Borrower AX, LLC, care of CoreVest American Finance Lender LLC, as its sole unsecured creditor with a $30.39 million claim; the creditor is the guarantor and pledgor of a mortgage secured by 950 Conley Road SE, Atlanta, Georgia 30354, which consists of 62 residential units. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/BZB22LQ/Falcon_Conley_CV20_Pledgor_LLC__nyebke-25-72988__0001.0.pdf?mcid=tGE4TAMA FISCHER AG: Steven Wallace Named Subchapter V Trustee ----------------------------------------------------- The Acting U.S. Trustee for Region 13 appointed Steven Wallace as Subchapter V trustee for Fischer AG, LLC. Mr. Wallace will be paid an hourly fee of $325 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Wallace declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Steven M. Wallace Goldenberg Heller & Antognoli P.C. 2227 South State Route 157 Edwardsville, Illinois 62025 Telephone: (618) 656-5150 Facsimile: (618) 656-6230 Email: steven@ghalaw.com About Fischer AG Fischer AG, LLC, doing business as Fischer Trucking, provides interstate freight transportation services. The Company hauls general freight, agricultural products, dry bulk commodities, and metal goods. It operates from Missouri with a small fleet serving regional and interstate routes. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Miss. Case No. 25-20127) on July 30, 2025, with $2,643,600 in assets and $2,420,098 in liabilities. Chris Fischer, owner, signed the petition. David M. Dare, Esq., at Herren, Dare & Streett represents the Debtor as legal counsel. FOREST GOOD: Court Extends Cash Collateral Access to Aug. 31 ------------------------------------------------------------ Forest Good Eats, LLC received third interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, to use cash collateral from August 1 to 31. The court's order authorized the Debtor's interim use of cash collateral to pay its operating expenses in accordance with its budget. The Debtor's budget shows total operating expenses of $354,932.44 for the interim period. Several creditors potentially holding secured interests in the Debtor's cash or receivables include Gulf Coast Bank & Trust Company, Optimal Living, LLC, Rewards Network and the U.S. Small Business Administration. Each of these creditors will have a continuing post-petition lien on and security interest in all property of the Debtor and the proceeds thereof, with the same priority as its pre-bankruptcy lien. As further protection, the Debtor must pay $6,000 to Gulf Coast Bank & Trust by August 22. The third interim order will remain effective until it is modified or terminated by further order; a trustee or examiner is appointed; the Debtor's Chapter 11 case is dismissed or converted; a notice of default is filed; or a subsequent order approving use of cash collateral is entered by the court. The next hearing is scheduled for August 21. The Debtor's sole sources of revenue and income consist of cash on hand and on deposit in its bank accounts and the revenue generated from the sale and distribution of its food and beverages at its restaurants. The funds held by the Debtor, which were generated from business operations as well as the proceeds generated from the collection of any outstanding accounts receivable and other post-petition operations may constitute the cash collateral of the secured creditors. About Forest Good Eats Forest Good Eats, LLC operates Real McCoy's, a restaurant and sports bar in Wake Forest, North Carolina. The establishment offers American cuisine and craft beer in a casual setting. Forest Good Eats sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-02018) on May 30, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge David M. Warren handles the case. Joseph Zachary Frost, Esq., at Buckmiller & Frost, PLLC is the Debtor's legal counsel. Gulf Coast Bank & Trust Company, as secured creditor, is represented by: Lisa P. Sumner, Esq. Maynard Nexsen, PC 4141 Parklake Avenue, Suite 200 Raleigh, NC 27612 Telephone: (919) 573-7423 Facsimile: (919) 573-7454 LSumner@maynardnexsen.com FRESE INDUSTRIES: Beverly Brister Named Subchapter V Trustee ------------------------------------------------------------ The Acting U.S. Trustee for Region 13 appointed Beverly Brister, Esq., a practicing attorney in Benton, Ark., as Subchapter V trustee for Frese Industries, Inc. Ms. Brister will be paid an hourly fee of $360 for her services as Subchapter V trustee. Should travel be required outside of Saline or Pulaski Counties, the Subchapter V trustee will seek a compensation rate of $100 per hour for actual travel time incurred. Ms. Brister declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Beverly I. Brister, Esq. Attorney at Law 212 W. Sevier Benton, AR 72015 Phone: 501-778-2100 Email: bibristerlaw@gmail.com About Frese Industries Frese Industries, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ark. Case No. 25-71330) on July 31, 2025, listing between $100,001 and $500,000 in assets and up to $50,000 in liabilities. Judge Bianca M. Rucker presides over the case. Stanley V. Bond, Esq., at Bond Law Office represents the Debtor as bankruptcy counsel. FUTURA ENTERPRISES: Seeks to Hire DeMarco Mitchell PLLC as Counsel ------------------------------------------------------------------ Futura Enterprises Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire DeMarco Mitchell, PLLC as counsel. The firm will provide these services: a. take all necessary action to protect and preserve the Estate; b. prepare on behalf of the Debtor all necessary motions, applications, answers, orders, reports, and papers in connection with the administration of the estate; c. formulate, negotiate, and propose a plan of reorganization; and d. perform all other necessary legal services in connection with these proceedings. The firm will be paid at these rates: Robert T. DeMarco $400 per hour Michael S. Mitchell $300 per hour Barbara Drake, Paralegal $125 per hour The firm was paid a retainer in the amount of $16,738. 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) 991-5591 Email: robert@demarcomitchell.com mike@demarcomitchell.com About Futura Enterprises Inc. Futura Enterprises Inc., doing business as Futura Building Systems, provides residential and commercial construction services in Texas. The Company offers roofing, remodeling, gutters, siding, and renovation work, operating from its office in Dallas. Futura Enterprises Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-42551) on July 14, 2025. In its petition, the Debtor reports total assets of $313,607 and total liabilities of $2,583,194. Honorable Bankruptcy Judge Mark X. Mullin handles the case. The Debtors are represented by Robert T DeMarco, Esq. at DEMARCO MITCHEL, PLLC. GRDN HOSPITALITY: Gets Interim OK to Use Cash Collateral -------------------------------------------------------- GRDN Hospitality, LLC got the green light from the U.S. Bankruptcy Court Central District of California for the Central District of California to use cash collateral. At the hearing held on July 31, the court granted the Debtor's bid to use cash collateral on an interim basis through September 5 and set a further hearing for September 4. The Debtor, founded in 2013 and operating the first craft brewery in Inglewood near SoFi Stadium, filed for bankruptcy protection to preserve its going concern value amid severe operational and financial challenges. These include supply chain disruptions, inflation, declining industry demand, increased labor costs, tariffs, ICE enforcement actions that impacted customer traffic, and temporary closures due to wildfires. The Debtor has minimal cash on hand (approximately $2,000) and is anticipating post-petition income from distributors. To maintain operations, the Debtor needs to use this cash collateral, which is subject to a lien held by its secured creditor, Live Oak Bank. Live Oak holds a $2.52 million SBA 7(a) loan and a $200,000 SBA Express Line of Credit, secured by all business assets. The Debtor offered granting Live Oak replacement liens of equal validity and priority as adequate protection. About GRDN Hospitality LLC GRDN Hospitality, LLC operates as a craft brewery under the brand Three Weavers Brewing Company in Inglewood, California. The Company produces and distributes a variety of beers, including lagers and ales, and engages in on-site retail and community events. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-16321) on July 25, 2025. In the petition signed by Lynne Weaver, CEO and manager, the Debtor disclosed up to $10 million in both assets and liabilities. Gregory K. Jones, Esq., at Stradling Yocca Carlson & Rauth, LLP, represents the Debtor as legal counsel. GYLMAR DEVELOPMENTS: Carol Fox Named Subchapter V Trustee --------------------------------------------------------- The U.S. Trustee for Region 21 appointed Carol Fox of GlassRatner as Subchapter V trustee for Gylmar Developments, Inc. Ms. Fox will be paid an hourly fee of $450 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Fox declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Carol Fox GlassRatner 200 East Broward Blvd., Suite 1010 Fort Lauderdale, FL 33301 Tel: 954.859.5075 Email: cfox@brileyfin.com About Gylmar Developments Inc. Gylmar Developments, Inc. is a Miami-based corporation headquartered at 8485 NW 54th Street. Gylmar Developments sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-18606) on July 2, 2025. In its petition, the Debtor reported estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. Judge Robert A. Mark handles the case. The Debtor is represented by Michael S. Hoffman, Esq. HEADWAY WORKFORCE: Plan Exclusivity Period Extended to Oct. 2, 2025 ------------------------------------------------------------------- Judge Joseph N. Callaway of the U.S. Bankruptcy Court for the Eastern District of North Carolina extended Headway Workforce Solutions, Inc. and its affiliates' exclusive periods to file a plan of reorganization and obtain acceptance thereof to October 2 and December 1, 2025, respectively. As shared by Troubled Company Reporter, the Debtors explain that they have filed motions relating to notice requirements for trading in equity and claims, seeking approval of compensation for employees and rejecting the Debtors' nonresidential leases. Moreover, the creditors' committee is also in the process of collecting discovery and investigating potential claims during the court-approved challenge period. Accordingly, because the Debtors have made significant progress under difficult circumstances in these chapter 11 cases and continue to work diligently, collaboratively and efficiently towards what they hope will be a consensual resolution of these chapter 11 cases, the Debtors believe that a short 30-day extension of each of the Exclusivity Periods is warranted. The Debtors claim that this is their first request for an extension of the Exclusivity Periods. An order allowing the extensions as requested in this application will not prejudice any party and is in the best interests of the estates and all parties in interest. Counsel to the Debtors: Jason L. Hendren, Esq. Rebecca Redwine Grow, Esq. Benjamin E.F.B. Waller, Esq. Lydia C. Stoney, Esq. Hendren, Redwine & Malone, PLLC 4600 Marriott Drive, Suite 150 Raleigh, NC 27612 Tel: (919) 573-1422 Fax: (919) 420-0475 Email: jhendren@hendrenmalone.com rredwine@hendrenmalone.com bwaller@hendrenmalone.com lstoney@hendrenmalon.com and Kirk B. Burkley, Esq. Bernstein-Burkley, PC 601 Grant Street, 9th Floor Pittsburg, PA 15219 Tel: (412) 456-8100 E-mail: kburkley@bernsteinlaw.com About Headway Workforce Solutions Headway Workforce Solutions, Inc., sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-01682-5-JNC) on May 5, 2025. In the petition signed by Brendan Flood, chief executive officer, the Debtor disclosed up to $50 million in both assets and liabilities. Judge Joseph N. Callaway oversees the case. Rebecca Redwine Grow, Esq., at Hendren, Redwine & Malone, PLLC, is the Debtor's legal counsel. Noor Staffing Group, LLC, as DIP lender, is represented by: Pamela P. Keenan, Esq. Kirschbaum, Nanney, Keenan & Griffin, P.A. PO Box 19766 Raleigh, NC 27619-9766 Telephone: (919) 848-0420 Facsimile: (919) 848-8755 Email: pkeenan@kirschlaw.com HEARTLAND DENTAL: Moody's Alters Outlook on 'B3' CFR to Positive ---------------------------------------------------------------- Moody's Ratings affirmed HEARTLAND DENTAL, LLC's ("Heartland") corporate family rating at B3, probability of default rating at B3-PD and backed senior secured notes at B3. Moody's also assigned B3 ratings to Heartland's new backed senior secured first lien revolving credit facility due 2030 and new backed senior secured first lien term loan due 2032. There is no change to the B3 ratings on the existing senior secured revolving credit facility and senior secured term loan, and these ratings will be withdrawn at transaction close. Concurrently, Moody's revised the outlook to positive from stable. The outlook revision to positive reflects the deleveraging impact of recent and pending financial transactions including an equity infusion of $500 million, debt reduction of $300 million, and an acquisition in the range of $130-140 million. Combined with the potential for further deleveraging from ongoing earnings growth, these factors could result in an improved credit profile over the next 12 to 18 months. Governance risk considerations related to financial strategy and risk management are material to the rating action. The $500 million equity infusion from Heartland's financial sponsor represents a material amount of deleveraging, contributing to Moody's revised outlook. RATINGS RATIONALE Heartland's ratings reflect its still moderately high debt/EBITDA of approximately 6.4x pro forma for the transactions, and consistently negative free cash flow due to its aggressive growth strategy. Moody's expects that leverage will decline to 6.1x by the end of 2025 on organic revenue growth, lower de novo losses, ramp up of existing de novos and affiliations (acquisitions), but that free cash flow will remain negative. The company's position as the largest dental support organization (DSOs) in the US supports its ratings. Additionally, Heartland has discretionary levers to improve its free cash flow by reducing the pace of new clinic openings and dentist affiliation investments. Moody's expects Heartland will maintain good liquidity due to access to a sizeable revolver. At the end of March 2025, the company had approximately $44 million in cash and $270 million available on its revolver. Moody's anticipates ample cushion under the financial covenants of the revolver, which would spring if 35% is drawn. The positive outlook reflects the potential for an upgrade if the company continues to deleverage through solid earnings growth and a disciplined approach to acquisitions and affiliation investments. The proposed senior secured first lien credit facilities include a new $1.9 billion first lien term loan due 2032 and a new $280 million revolver expiring in 2030. Pro forma for the paydown, Moody's anticipates that there will be $500 million in remaining senior secured notes due 2028, which are pari passu with the credit facility. The senior secured facilities and senior secured notes are rated B3, which match the corporate family rating as these instruments represent the preponderance of debt in the capital structure. These instruments benefit from a first lien security interest in substantially all of the assets of the company. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Heartland adopts less aggressive financial policies and sustainably reduces debt to EBITDA below 6.0 times. Additionally, a material improvement in free cash flow would support an upgrade. The ratings could be downgraded if the company's earnings weaken or financial leverage increases due to weak dental visit trends or margin erosion. Pursuit of an overly aggressive expansion strategy or deterioration in Heartland's cash flow or liquidity could also result in a downgrade. Heartland provides support staff and comprehensive business support functions under administrative service agreements to its affiliated dental offices, organized as professional corporations. Heartland currently operates more than 1,810 offices across 39 states. Heartland is majority-owned by KKR, and Ontario Teachers' Pension Plan Board maintains partial ownership. The company generated about $3.65 billion in net patient service revenue for the last twelve months ended March 31, 2025. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. HEAVENLY HOGS: Amanda Stofan Named Subchapter V Trustee ------------------------------------------------------- The Acting U.S. Trustee for Region 8 appointed Amanda Stofan of Farinash & Stofan as Subchapter V trustee for Heavenly Hogs Tours, LLC. Ms. Stofan will be paid an hourly fee of $350 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Stofan declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Amanda M. Stofan Farinash & Stofan 100 West M L King Blvd, Ste. 816 Chattanooga, TN 37402 Voice: (423) 805-3100 Fax: (423) 805-3101 Email: amanda@8053100.com About Heavenly Hogs Tours Heavenly Hogs Tours, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 25-11901) on July 25, 2025, with $100,001 to $500,000 in assets and liabilities. Judge Nicholas W. Whittenburg presides over the case. W. Thomas Bible, Jr., Esq., at the Law Office of W. Thomas Bible, Jr. represents the Debtor as bankruptcy counsel. HERITAGE GRILLE: Court Extends Cash Collateral Access to Aug. 31 ---------------------------------------------------------------- The Heritage Grille, LLC received third interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, to use cash collateral. The third interim order authorized the Debtor to utilize cash collateral to pay its operating expenses from August 1 to 31. Cash collateral use must conform to the budget, with a 10% variance allowed on individual items. The Debtor projects total operational expenses of $354,932.44 for the interim period. Several creditors including Gulf Coast Bank & Trust and the U.S. Small Business Administration hold potential interests in the cash collateral. These creditors will have a continuing post-petition lien on and security interest in all property of the Debtor and the proceeds thereof, with the same priority as their pre-bankruptcy lien. As further protection, Gulf Coast Bank & Trust will receive $6,000 by August 22. The next hearing is set for August 21. Prior to its Chapter 11 filing, the Debtor incurred indebtedness in connection with its business operations, in which creditors including Gulf Coast Bank & Trust, SBA, Optimal Living, LLC and Rewards Network took a security interest in certain property owned by the Debtor. The funds in the possession of the Debtor, which were generated from business operations, as well as the proceeds generated from the collection of any outstanding accounts receivable and other post-petition operations, may constitute the cash collateral of the secured creditors. About Heritage Grille & Wine Bar Heritage Grille & Wine Bar, LLC, doing business as The Heritage Grille & Wine Barrel, is a fine dining restaurant based in Wake Forest, North Carolina. It serves French-inspired cuisine and offers a curated wine selection. The establishment includes a formal dining room, a speakeasy-style bar, and a bottle shop. Heritage Grille & Wine Bar sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-02019) on June 2, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Judge David M. Warren handles the case. The Debtor is represented by: Joseph Zachary Frost, Esq. Buckmiller & Frost, PLLC Tel: 919-296-5040 Email: jfrost@bbflawfirm.com HILARY HAMANN: Court Dismisses Chapter 11 Case with Prejudice ------------------------------------------------------------- Judge Louis A. Scarcella of the United States Bankruptcy Court for the Eastern District of New York dismissed Hilary Hamann's chapter 11 case with prejudice. William K. Harrington, the United States Trustee for Region 2, moved by Notice of Motion dated June 9, 2025, for the entry of an order under 11 U.S.C. Sec. 1112(b) dismissing the Chapter 11 case filed by Hilary Hamann with prejudice, or in the alternative, converting this chapter 11 case to one under chapter 7 of the Bankruptcy Code. On July 9, 2025, one day before the scheduled hearing on the Motion, Julio E. Portilla, Esq. of Law Office of Julio E. Portilla, P.C. filed a limited objection on behalf of the Debtor requesting that the Court deny the Motion and instead grant the Debtor's motion to dismiss this chapter 11 case, without prejudice under 11 U.S.C. Sec. 305. There is and can be no dispute that the Debtor has filed four bankruptcy cases since 2019, each with the assistance of Mr. Portilla as counsel of record. It also cannot be disputed that each of the filings was strategically timed to stay a foreclosure sale of residential real property located at 175 Main Street, Sag Harbor, New York by the mortgagee. The Debtor filed her Limited Objection contending that she has meritorious defenses to both the foreclosure action and the tax lien filed by the Internal Revenue Service against the Property and that the current bankruptcy filing was the only available option to halt the foreclosure sales and gain time to address these complex issues. In her Limited Objection, she admitted that she filed her three prior bankruptcy cases to protect the Property from a foreclosure sale by the mortgagee. The Debtor further admits that she filed a motion to dismiss this case recognizing that reorganization is not feasible and that the state court and IRS proceedings are the appropriate forums to resolve these disputes. The Court held a hearing on the Motion on July 10, 2025. Based upon the record made at the Hearing, the Court finds that: (i) the United States Trustee established, by a preponderance of the evidence, that cause exists under 11 U.S.C. Sec. 1112(b) to dismiss this chapter 11 case; and (ii) the multiple bankruptcy filings by the Debtor within the preceding 18 months and the Debtor's Declaration dated July 8, 2025 in support of the Limited Objection demonstrate that this chapter 11 case must be dismissed with prejudice. The Court finds the United States Trustee has met its burden of proof by establishing that cause exists to dismiss the Chapter 11 case because there is a continuing diminution of the estate and an absence of a reasonable likelihood of rehabilitation. The Debtor is an unemployed writer and the household income is dependent upon contributions from her non-filing spouse. As evidenced by the timing and sequence of the Debtor's four bankruptcy filings, the Debtor sought in each instance to stop a scheduled foreclosure and having accomplished her stated intention, the Debtor admittedly had no need to continue the bankruptcy process, nor any intention to comply with obligations required of her under the Bankruptcy Code. Accordingly, the Court concludes that this current chapter 11 case was filed in bad faith and must be dismissed with prejudice lest the Debtor continue her pattern of filing repeatedly for bankruptcy relief with no stated intention of reorganizing her financial affairs and her blatant disregard for the integrity of the bankruptcy. The Debtor is barred from filing a case under Chapter 11 and Chapter 13 of the Bankruptcy Code for a period of one (1) year from the date of the entry of the Memorandum Order. A copy of the Court's Memorandum Order dated July 28, 2025, is available at https://urlcurt.com/u?l=xwowGG from PacerMonitor.com. Hilary Hamann filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 24-72449) on May 21, 2025, listing under $1 million in both assets and liabilities. The Debtor is represented by Julio Portilla, Esq. HYPERION MATERIALS: Moody's Lowers CFR to 'B3', Outlook Stable -------------------------------------------------------------- Moody's Ratings downgraded Hyperion Materials & Technologies, Inc.'s (Hyperion) corporate family rating to B3 from B2 and the probability of default rating to B3-PD from B2-PD. Moody's also downgraded the ratings on the company's senior secured bank credit facilities, including the senior secured revolving credit facility expiring 2026 and senior secured first lien term loan maturing 2028 to B3 from B2. The outlook was changed to stable from negative. The downgrade to B3 reflects Hyperion's weak operating performance, muted growth expected in 2025 and limited prospects for a material turnaround before 2026 due to persistent softness in overall demand conditions, impacting the company's toolmaker solutions business in particular. The company's credit metrics remain weak in the current subdued demand environment, with high leverage of 8.3x debt/EBITDA and weak interest coverage of 0.7x EBITA/interest expense as of March 31, 2025. The stable outlook reflects Hyperion's recurring revenue base, which provides some support to demand despite exposure to cyclical end markets and the company's adequate liquidity. The stable outlook is also supported by Moody's expectations of modestly improving GDP growth for 2026 in several key markets that the company operates in, which should result in modestly improving credit metrics. RATINGS RATIONALE Hyperion's B3 CFR reflects its small revenue base against larger competitors, some of which are public companies, and a high concentration of sales in cyclical end markets including automotive, oil and gas, aerospace and general industrials, among others. The company maintains a steady pace of tuck-in acquisitions to support growth, which still entail integration risk. The company will need to continue to invest in R&D to maintain its margins and competitive position. The rating is supported by the company's specialized product portfolio manufactured from hard and super hard materials based on carbide and synthetic diamond technologies. About 90% of Hyperion's revenue is generated from products with a finite useful life, providing stability and a recurring base of business. The company serves diversified end markets across both industrials and consumables, with a global sales presence. Moody's expects Hyperion to maintain adequate liquidity over the next 12 to 18 months, supported by about $19 million of cash on the balance sheet and full availability on the $75 million revolving credit facility as of March 31, 2025. Hyperion is expected to generate sufficient cash flow to cover fixed charges, including maintenance capital investment, cash interest & taxes, and debt amortization, but further cash usage may require reliance on the $40 million trade receivables facility or revolver. Moody's do not expect Hyperion to trigger or violate the springing covenant on the revolving credit facility. Moody's views also incorporates Moody's expectations for the company to extend its revolver expiring August 2026. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade the ratings if the company maintains adjusted debt/EBITDA below 6.0x and adjusted EBITA/interest expense above 2.0x. Moody's could also upgrade the ratings if the company preserves good liquidity and further improves its profitability. Moody's could downgrade the ratings if adjusted debt/EBITDA remains above 7.0x and adjusted EBITA/interest expense remains near 1.0x. A deterioration in liquidity including negative free cash flow or an aggressive acquisition with additional debt could result in downward ratings pressure. Headquartered in Worthington, Ohio, Hyperion develops, produces and sells hard and super-hard materials based on carbide and synthetic diamond technologies. Hyperion has been a portfolio company of KKR since July 2018. The company generated approximately $528 million of revenue for the last twelve months ended March 31, 2025. The principal methodology used in these ratings was Manufacturing published in September 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. I V SUPPORT: Mark Sharf Named Subchapter V Trustee -------------------------------------------------- The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a practicing attorney in Los Angeles, as Subchapter V trustee for I V Support Systems, Inc. Mr. Sharf will charge $660 per hour for his services as Subchapter V trustee and $150 per hour for his trustee administrator's services. In addition, the Subchapter V trustee will seek reimbursement for work-related expenses incurred. Mr. Sharf declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Mark Sharf, Esq. 6080 Center Drive, 6th Floor Los Angeles, CA 90045 Telephone: (323) 612-0202 Email: mark@sharflaw.com About I V Support Systems I V Support Systems, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-12139) on July 31, 2025. At the time of the filing, the Debtor reported between $100,001 and $500,000 in assets and between $500,001 and $1 million in liabilities. Judge Mark D. Houle oversees the case. The Debtor is represented by: Aaron De Leest, Esq. Marshack Hays Wood, LLP 870 Roosevelt Irvine, CA 92620-3663 Phone: 949-333-7777 adeleest@marshackhays.com IBIO INC: Gets Nasdaq Notice for Non-Compliance With $1 Bid Rule ---------------------------------------------------------------- iBio, Inc., was notified by the Listing Qualifications Department of The Nasdaq Stock Market LLC on July 29, 2025, that its shares failed to meet the minimum $1.00 closing bid price requirement over a 30-day period ending July 28. The stock remains listed on the Nasdaq Capital Market under the symbol "IBIO." The Company has until Jan. 26, 2026, to regain compliance with Nasdaq's $1.00 minimum bid price rule under a 180-day period granted pursuant to Listing Rule 5810(c)(3)(A). Compliance may be achieved without further action if the closing bid price of the Company's common stock is at or above $1.00 for a minimum of 10 consecutive business days at any time during the 180-day Compliance Period, in which case Nasdaq will notify the Company if it determines it is in compliance and the matter will be closed; however Nasdaq may, in its discretion, require the closing bid price to equal or to exceed the $1.00 Minimum Bid Price Requirement for more than 10 consecutive business days, but generally no more than 20 consecutive business days, before determining that a company has demonstrated an ability to maintain long-term compliance. If the Company fails to meet the $1.00 minimum bid price requirement by Jan. 26, 2026, it may be eligible for an additional compliance period. In order to be eligible for such additional time, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the Minimum Bid Price Requirement, and must notify Nasdaq in writing of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. If the Company meets these requirements, Nasdaq will inform the Company that it has been granted an additional 180 calendar days. However, if it appears to Nasdaq that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, Nasdaq will provide notice that the Company's common stock will be subject to delisting. iBio plans to closely monitor its share price and may pursue options such as a reverse stock split to regain compliance with Nasdaq listing rules. About iBio, Inc. Headquartered in San Diego, CA, iBio -- http://www.ibioinc.com-- is a preclinical biotechnology company developing precision antibodies using artificial intelligence and machine learning. The Company operates an AI Drug Discovery Platform to identify novel targets and optimize monoclonal antibodies, aiming to accelerate early-stage development and reduce downstream risks. Jericho, New York-based Grassi & Co., CPAs, P.C., the Company's auditor since 2024, issued a "going concern" qualification in its report dated Sept. 19, 2024, citing that the Company has incurred losses since inception, accumulated deficit and has negative cash flows from operations, that raise substantial doubt about its ability to continue as a going concern. The Company held $5.2 million in cash, cash equivalents, and restricted cash as of March 31, 2025, and $10.5 million as of May 1, 2025. It warned of substantial doubt about its ability to continue as a going concern beyond the first quarter of fiscal 2026. Management is reviewing strategic options to extend its cash runway, including narrowing product development, divesting or licensing assets, pursuing grants, entering partnerships, or raising capital. While the company expects, based on expert input, that at least one option may secure funding for 12 months or more, it cautioned there is no assurance any plan will succeed. The Company has incurred net losses and used significant cash in operating activities since inception, and expects to continue to generate operating losses for the foreseeable future. As of March 31, 2025, the Company has an accumulated deficit of $327.1 million. The Company's ongoing losses have depleted its cash resources, forcing it to rely on financing transactions to sustain operations. During the nine months ended March 31, 2025, the Company used $10.7 million in operating cash and is currently incurring negative operating cash flow of about $1.2 million per month. As of March 31, 2025, the Company had $19.10 million in total assets, $7.72 million in total liabilities, and $11.38 million in total stockholders' equity. The Company reported a net loss of $24.91 million for the year ended June 30, 2024, compared to a net loss of $65.01 million for the year ended June 30, 2023. IDEANOMICS INC: Seeks to Extend Plan Exclusivity to Sept. 30, 2025 ------------------------------------------------------------------ Idex Wind Down, Inc. f/k/a Ideanomics, Inc. and its affiliates asked the U.S. Bankruptcy Court for the District of Delaware to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to September 30 and November 28, 2025, respectively. The Debtors explain that given the size and complexity of these Chapter 11 Cases, not extending exclusivity would be detrimental to an efficient resolution of these cases. While no other party has yet suggested they would be willing or able to propose a plan, terminating exclusivity could create a situation where the Debtors' estates are saddled with multiple and competing plans. The Debtors claim that these Chapter 11 Cases contemplated a marketing process and sale, followed by a chapter 11 plan of liquidation through which any sale proceeds and other available proceeds would be distributed in accordance with the Bankruptcy Code. The Debtors are focusing their efforts on drafting and filing a value-maximizing plan of liquidation. Therefore, if achieved, a chapter 11 plan would be the product of the Debtors’ extensive efforts, and cause exists to extend the Exclusive Periods to allow the Debtors to negotiate and formulate such plan. The Debtors cite that they have been paying their undisputed post-petition amounts owed in the ordinary course of business or as otherwise provided by the Court Order. In addition, the Debtors have sufficient liquidity to continue paying administrative expenses as they become due and will continue to make such payments. This factor therefore weighs in favor of allowing the Debtors to extend the Exclusive Periods. The Debtors assert that the expiration of their exclusive right to file a Chapter 11 plan at such a critical time would jeopardize the forward momentum of these Chapter 11 Cases and disrupt the substantial progress made to date. Accordingly, this extension request is reasonable and consistent with the efficient prosecution of these Chapter 11 Cases because it will provide the Debtors with additional time to draft and file a plan. The Debtors further assert that extending the Exclusivity Periods will benefit creditors by avoiding the drain on estate assets attendant to a competing Chapter 11 plan. The Debtors' requested extension of the Exclusivity Periods is intended to allow the Debtors to continue to work cooperatively with their key constituents toward the goal of confirming and implementing a consensual and value-maximizing plan of liquidation in the most cost-efficient manner possible. Co-Counsel to the Debtors: Palacio, Esq. Gregory A. Taylor, Esq. ASHBY & GEDDES, P.A. 500 Delaware Avenue, 8th Floor P.O. Box 1150 Wilmington, DE 19801 Tel: (302) 654-1888 Fax: (302) 654-2067 Email: RPalacio@ashbygeddes.com GTaylor@ashbygeddes.com John A. Simon, Esq. Jake W. Gordon, Esq. FOLEY & LARDNER LLP 500 Woodward Ave., Suite 2700 Detroit, MI 48226-3489 Tel: (313) 234-7100 Fax: (313) 234-2800 Email: jsimon@foley.com Jake.gordon@foley.com - and - Timothy C. Mohan, Esq. 1400 16th Street, Suite 200 Denver, CO 80202 Tel: (720) 437-2000 Fax: (720) 437-2200 Email: tmohan@foley.com About Ideanomics Inc. New York, N.Y.-based Ideanomics, Inc. is a global electric vehicle company that is focused on driving the adoption of electric commercial vehicles and associated sustainable energy consumption. It is made up of 5 subsidiaries including: VIA Motors, Solectrac, Treeletrik, Wave, and US Hybrid. Ideanomics Inc. and seven of its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12728) on December 4, 2024. In its petition, the Debtor reports assets between $50 million and $100 million and liabilities ranging from $100 million to $500 million. Foley & Lardner LLP serves as the Debtors' general bankruptcy counsel and Ashby & Geddes, P.A. acts as the Debtors' Delaware co-counsel. The Debtors tapped Epiq Corporate Restructuring as noticing and claims agent. Riveron Management Services, LLC is the Debtors' CRO and financial advisor, and SSG Advisors, LLC, is the Debtors' investment banker and financial adviser. INTEGRITY REAL ESTATE: Trustee Taps Annette Jarvis as Examiner -------------------------------------------------------------- The United States Trustee seeks approval from the U.S. Bankruptcy Court for the District of Colorado to employ Annette Jarvis as examiner for Integrity Real Estate, LLC. Ms. Jarvis assured the court that she has no connections with the debtor(s), creditors, any other parties in interest, their respective attorneys and accountants, the United States Trustee, or any person employed in the Office of the United States Trustee. The firm can be reached through: Annette Jarvis 222 South Main Street, Suite 1730 Salt Lake City, UT 84101 About Integrity Real Estate Integrity Real Estate, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 24-16853) on November 15, 2024, listing under $1 million in both assets and liabilities. Judge Thomas B. McNamara handles the case. Allen Vellone Wolf Helfrich & Factor PC serves as the Debtor's counsel. INVESTMENT BUILDERS: Jody Corrales Named Subchapter V Trustee ------------------------------------------------------------- The U.S. Trustee for Region 14 appointed Jody Corrales, Esq., at Deconcini McDonald Yetwin & Lacy P.C. as Subchapter V trustee for Investment Builders Partners, LLC. Ms. Corrales will be paid an hourly fee of $395 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Corrales declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Jody A. Corrales Deconcini McDonald Yetwin & Lacy P.C. 252 E. Broadway Blvd., Suite 200 Tucson, AZ 85716 Telephone: 520-322-5000 Fax: 520-322-5585 Email: jcorrales@dmyl.com About Investment Builders Partners LLC Investment Builders Partners, LLC is an operator of Universal Ranch RV Park in Arivaca, Arizona. Investment Builders Partners filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No. 25-06937) on July 29, 2025. In its petition, the Debtor reported estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Scott H. Gan handles the case. IR4C INC: Court Extends Cash Collateral Access to Sept. 11 ---------------------------------------------------------- IR4C, Inc. received eighth interim approval from the U.S. Bankruptcy Court for the Middle District of Florida to use cash collateral. The eighth interim order approved the use of cash collateral for the period from July 17 to September 11, to pay business expenses set forth in the monthly budget. All secured creditors will have perfected post-petition liens on cash collateral to the same extent and with the same validity and priority as their respective pre-bankruptcy liens. Meanwhile, Lake Michigan Credit Union will continue to receive a monthly payment of $10,000 as protection. The interim order will remain in effect until IR4C's Chapter 11 case is converted to Chapter 7, a trustee is appointed, a bankruptcy plan is confirmed, or the order is terminated. The next hearing is set for September 11. About IR4C Inc. IR4C, Inc., a company in Lakeland, Fla., is the owner and operator of a mobile application fitness program using augmented reality to create virtual "races." It conducts business under the name Yes.Fit and Make Yes Happen. IR4C filed Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No. 24-05458) on Sept. 13, 2024. In its petition, IR4C listed total assets of $4,280,839 and total liabilities of $7,922,422. IR4C President Kevin D. Transue signed the petition. Judge Roberta A. Colton oversees the case. Samantha L. Dammer, Esq., at Bleakley Bavol Denman & Grace is the Debtor's legal counsel. Lake Michigan Credit Union, as secured creditor, is represented by: Andrew W. Lennox, Esq. Casey Reeder Lennox, Esq. Lennox Law, P.A. P.O. Box 20505 Tampa, FL 33622 Tel: 813-831-3800 Fax: 813-749-9456 alennox@lennoxlaw.com clennox@lennoxlaw.com JACKSON HOSPITAL: Plan Exclusivity Period Extended to October 1 --------------------------------------------------------------- Judge Christopher L. Hawkins of the U.S. Bankruptcy Court for the Middle District of Alabama extended Jackson Hospital & Clinic, Inc., and its affiliated debtors' exclusive periods to file a plan of reorganization and obtain acceptance thereof to October 1 and December 1, 2025, respectively. As shared by Troubled Company Reporter, based on the factors and the history of these proceedings, the Debtors submit that sufficient "cause" exists pursuant to section 1121(d) of the Bankruptcy Code to extend the Exclusive Periods. The following relevant factors each weighs in favor of an extension of the Exclusive Periods: * The Debtors' Chapter 11 Cases Are Complex. While the Debtor only consists of two units, this case is still complex given the particular challenges of dealing with a financially distressed hospital and all of the unique issues that come along with a business entity dealing with life and death decisions daily. Additionally, the Debtor maintains a fairly complex corporate and capital structure, a vast network of operations, and a multitude of parties in interest, secured lenders, tort claimants, vendors, and staffing issues, among others. Therefore, this case is unquestionably large and complex. * The Debtors Have Made Good Faith Progress. In the months since the Petition Date, the Debtors have made significant progress in stabilizing the Debtors' operations and have made progress toward an exit strategy. Additionally, the Debtors are still reviewing all of their contracts and leases, including a review of which contracts are viable and valuable and which contracts are not. These efforts allowed the Debtors to transition smoothly into chapter 11 and pave the way for the Debtors to formulate a chapter 11 plan, which will enable the Debtors to maximize the value available for its creditors. * An Extension of the Exclusive Periods Will Not Prejudice Creditors. Continued exclusivity will permit the Debtors to maintain flexibility and optionality so that competing plans do not derail the Debtors' bankruptcy process. Extending the Exclusive Periods will benefit the Debtors' estates, their creditors, and all other key parties in interest. Among other things, the Debtors have actively engaged with the Creditors' Committee concerning their assets and potential paths forward. * An Extension Will Not Pressure Creditors. The Debtors are not seeking an extension of the Exclusive Periods to pressure or prejudice any of their stakeholders. To the contrary, the Debtors are proposing an extension of exclusivity in order to have additional time to finalize their strategy and engage with their prepetition secured lenders and other stakeholders in restructuring negotiations without the distraction, confusion, and unnecessary expense that could be created by multiple competing plans. Counsel for the Debtors: Derek F. Meek, Esq. Marc P. Solomon, Esq. Catherine T. Via, Esq. James H. Haithcock III, Esq. Burr & Forman LLP 420 20th Street North, Suite 3400 Birmingham, Alabama 35203 Telephone: (205) 251-3000 E-mail: dmeek@burr.com msolomon@burr.com jhaithcock@burr.com cvia@burr.com About Jackson Hospital & Clinic Jackson Hospital & Clinic, Inc., is a non-membership, non-profit corporation based in Alabama. JHC is the direct or indirect parent company of JHC Pharmacy, LLC, an Alabama limited liability company that provides pharmacy services to JHC patients. JHC owns 100% of JHC Pharmacy. Additionally, JHC is a direct or indirect parent company of certain other entities that have not filed for bankruptcy. JHC operates a 344-bed healthcare facility in Montgomery, Ala., with a rich history dating back to 1894. Since its official opening in 1946, JHC has grown into one of the largest hospitals in Alabama, offering specialized services in cardiac care, cancer treatment, neurosciences, orthopedics, women's care, and emergency services. JHC's service area includes 16 counties across central Alabama. JHC and JHC Pharmacy filed Chapter 11 petitions (Bankr. M.D. Ala. Lead Case No. 25-30256) on Feb. 4, 2025. In its petition, JHC reported between $100 million and $500 million in both assets and liabilities. Judge Christopher L. Hawkins handles the cases. The Debtors are represented by Derek F. Meek, Esq. at Burr & Forman, LLP. JAMANA LLC: Alexandra Garrett Named Subchapter V Trustee -------------------------------------------------------- Mark Zimlich, the U.S. Bankruptcy Administrator for the Southern District of Alabama appointed Alexandra K. Garrett as Subchapter V trustee for Jamana LLC. About Jamana LLC Jamana LLC, doing business as Quality Inn Mobile West Tillman's Corner, operates a 58-room franchised Quality Inn hotel in Mobile, Alabama, offering lodging services and amenities such as complimentary breakfast, Wi-Fi and a seasonal outdoor pool. Jamana sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ala. Case No. 25-11994) on July 29, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Honorable Bankruptcy Judge Jerry C. Oldshue handles the case. The Debtor is represented by Kevin M. Ryan, Esq., at Ryan Legal Services, Inc. JETBLUE AIRWAYS: Fitch Lowers LongTerm IDR to B-, Outlook Negative ------------------------------------------------------------------ Fitch Ratings has downgraded JetBlue Airways Corp.'s (JetBlue) Long-Term Issuer Default Rating (IDR) to 'B-' from 'B'. The Rating Outlook is Negative. Fitch has also downgraded JetBlue's loyalty program debt, co-issued by JetBlue and JetBlue Loyalty, LP, to 'B+' with a Recovery Rating of RR2' from 'BB'/'RR1', and downgraded JetBlue's senior secured revolver rating to 'B+'/'RR2' from 'BB-'/'RR2'. The downgrade reflects weaker domestic leisure travel demand, which is expected to delay JetBlue's profitability initiatives by at least a year, increase cash burn, and necessitate more borrowing. Fitch expects ongoing operating losses and high debt to keep adjusted debt/EBITDA above 10x through 2026, which is weak for a 'B-' rating. The rating is supported by JetBlue's liquidity, unencumbered assets, and limited near-term maturities. Further negative rating actions are possible if JetBlue cannot demonstrate profitability and cash flow improvements that preserve and generate liquidity or does not achieve coverage metrics above 1.25x. Enhanced Equipment Trust Certificates (EETCs) Fitch has downgraded the 2019-1 class A rating to 'BBB-' from 'BBB' and class B rating to 'BB' from 'BB+'. The class A downgrade is driven by diminishing loan-to-value (LTV) headroom under the 'BBB' stress scenario and slow rate of amortization in the transaction, making the rating susceptible to marginal collateral value declines. The class B downgrade is driven by Fitch's downgrade of JetBlue's IDR to 'B-' from 'B'. Fitch has affirmed JetBlue's 2019-1 class AA certificates at 'A+' and affirmed the 2020-1 class A certificates at 'A'. These ratings are supported by sufficient overcollateralization and high collateral quality. Fitch has also affirmed the 2020-1 class B certificates at 'BB+' providing a five-notch uplift from JetBlue's 'B-' IDR. Key Rating Drivers Demand Environment Delays Margin Recovery: The current macroeconomic environment and softness in demand from cost-conscious travelers is delaying JetBlue's turnaround. Although bookings have improved after earlier weakness related to tariff announcements, margins will remain pressured. JetBlue's revenue initiatives are expected to drive margin improvement in the coming years, but Fitch believes that generating sufficient unit revenues to offset cost inflation experienced in recent years and achieve its EBIT targets will be challenging. Persistent operating losses and resulting weak credit metrics no longer support JetBlue's 'B' rating. Fitch believes that JetBlue can improve profitability over time, but execution risks remain. The company is taking actions such as introducing more premium products including domestic first-class seats, which show potential but will face competition from other airlines pursuing similar strategies. In addition, JetBlue is focusing its efforts on Northeastern markets where it has a strong presence; however, it remains uncertain whether expanding into smaller, secondary markets will generate adequate demand. Environment Favors Network Carriers: Low-cost carriers like JetBlue are at a disadvantage compared to full-service airlines in the current environment of weaker domestic leisure travel demand. Larger carriers are better able to attract price-sensitive travelers through basic economy options, while benefitting from extensive route networks and appealing loyalty programs. Although Fitch views JetBlue as better positioned than ultra-low-cost competitors like Spirit Airlines — and expects JetBlue to benefit from its recently announced partnership with United Airlines, Inc. (BB/Positive) — the overall competitive environment will likely remain challenging. Cost Pressures Remain: Fitch expects unit cost pressure to remain a headwind in 2025, partly driven by lower capacity resulting from the current demand environment. JetBlue expects non-fuel unit costs to increase by 5%-7% for FY 2025 on modestly lower capacity. This is a relatively positive result, reflecting its cost-cutting efforts, but nonetheless illustrates the challenging environment as the carrier has had to adjust capacity to compensate for lower demand. JetBlue aims to begin growing capacity in 2026 which should ease pressures on unit costs. However, success depends in part on an improving demand environment along with competitive dynamics with other airlines. Liquidity, Financial Flexibility Are Supportive: Fitch believes JetBlue's cash balance and remaining unencumbered assets provide some flexibility to manage near-term demand weakness. Capital raised in 2024 allows JetBlue to fund upcoming aircraft deliveries with cash, adding to its asset base, or to finance deliveries to maintain liquidity. Required debt payments will increase to $700 million in 2026, which Fitch views as manageable given current cash balances. Aside from $325 million in convertible bonds due in 2026, JetBlue has limited major upcoming maturities. JetBlue ended the second quarter with cash and short-term investments of $3.1 billion and full revolver availability. Projected Negative FCF: Fitch projects JetBlue will generate significantly negative FCF in the near term, with outflows of more than $1 billion in 2025 and at least several hundred million dollars in 2026. FCF could approach breakeven or turn slightly positive by 2027, driven by reduced capital expenditures and expanding margins. Capital spending is expected to be manageable, particularly beyond 2026, due to JetBlue's 2024 decision to defer future aircraft deliveries. Despite the anticipated negative FCF, risks are mitigated by JetBlue's liquidity and the potential to finance or manage upcoming aircraft deliveries. Leveraged Balance Sheet: JetBlue's capital raises in 2024 improved liquidity but exacerbated the company's already high leverage. Fitch had previously expected improved profitability to reduce leverage to within negative sensitivities in 2026 or 2027. However, these targets will be more challenging to achieve in the current economic environment. In addition, planned capital spending and a higher interest burden are likely to pressure cash flow, limiting the company's ability to reduce debt in the near term. EETCs Subordinate Tranche Ratings: The rating for the class B certificates is based on the bottom-up approach detailed in Fitch's "Aircraft EETC Criteria" which calls for the rating to be notched up from JetBlue's corporate rating of 'B-'. Subordinated tranches receive notching uplift based on three factors: 1) the affirmation factor (0-3 notches), 2) the presence of a liquidity facility (0-1 notch), and 3) recovery prospects (0- 1 notch). The 2019-1 class B certificates qualify for a four-notch uplift to 'BB' from JetBlue's IDR of 'B-' while the 2020-1 class B certificates qualify for a five-notch uplift to 'BB+'. The 2019-1 notching consists of +3 notches for the affirmation factor (maximum is +3 for a B category issuer) and +1 notch for the presence of a liquidity facility. The 2020-1 notching consists of an additional +1 recovery notch compared to 2019-1. The increase to a five-notch uplift for 2020-1 class B from four-notches in the prior review is driven by improving recovery prospects owing to a rapid debt amortization schedule and higher quality tier 1 collateral pool containing the A321 NEO. Affirmation Factors: Fitch continues to view the 2020-1 transaction as having a high affirmation factor supported by the large portion of JetBlue's active fleet contained in the pool, the high-quality collateral including next-gen NEO and workhorse CEO aircraft important to the company's strategy, and a relatively young collateral pool. Partially offsetting these positive factors is the pool's low diversification as it relates to comparable transactions. Fitch considers the affirmation factor for the 2019-1pool of aircraft to be high. The 25 aircraft in this transaction make up 25% of JetBlue's sub-fleet of A321s (it operated 100 A321s in total as of December 2024), and about 9% of its total fleet, making it highly unlikely that the aircraft in this pool would be rejected in the case of a bankruptcy. The A321 has taken a key role in JetBlue's fleet since the carrier started operating it in 2013. Senior Tranche Ratings: The ratings on the class AA and A certificates are driven by a top-down analysis incorporating a series of stress tests that simulate the rejection and repossession of the aircraft in a severe aviation downturn. 2019-1 Certificates Downgraded: Fitch has downgraded the JetBlue 2019-1 class A certificates to 'BBB-' from 'BBB' due to limited and diminishing LTV headroom under the 'BBB' stress scenario at 96.3%. The collateral in the pool is still seen as highly attractive; however, the low diversification and slow amortization profile make the transaction's LTVs susceptible to marginal value declines. Fitch has affirmed JetBlue's 2019-1 class AA certificates at 'A+' due to a large amount of overcollateralization, with LTV at 80.6%. The large LTV headroom helps mitigate concerns related to slow amortization and diversification mentioned above. 2020-1 Transaction Affirmed: Fitch has affirmed the ratings on JetBlue's 2020-1 transaction at 'A' as the transaction continues to pass the 'A' level stress scenario with sufficient headroom. Fitch calculated the maximum LTVs for the class A certificates transaction to be 86.3%. Collateral declines for the pool's 17 A321s and seven A321 NEOs were within its depreciation assumptions. Unlike the 2019-1 transaction, Fitch expects collateralization to improve over the next several years as the transaction's pace of amortization increases. LTV Summary: The value stresses listed above produce the following maximum LTVs for transactions rated through its top-down approach: - JBLU 2020-1 Class A: base case 58.6%, 'A' stress case 86.3%; - JBLU 2019-1 Class AA: base case 52.7%, 'A' stress case 80.6%; - JBLU 2019-1 Class A: base case 69.2%, 'BBB' stress case 96.3%. Peer Analysis JetBlue's 'B-' rating is above that of domestic peer Spirit Airlines, Inc. (Spirit; CCC+). While both JetBlue and Spirit demonstrate highly leveraged balance sheets, JetBlue has greater financial flexibility. JetBlue also benefits from a stronger market presence than Spirit in key markets such as New York and Boston, along with a more customer-friendly reputation. JetBlue's leverage metrics are notably weaker than network peers such as American Airlines, Inc. (B+/Stable) or United Airlines, Inc. due to strained near-term profitability. JetBlue's operating margins remain well below pre-pandemic levels and Fitch expects them to remain pressured in 2025, whereas larger network carriers have shown improvement in recent years. JetBlue is also more geographically concentrated than large network peers. EETCs The certificates rated 'A+' are one notch higher than ratings for several class A certificates issued by other carriers. Stress scenario LTVs for the 2019-1 transaction remain low and continue to support the 'A+' rating. The 2020-1 class A certificates that are rated 'A' compare well with issuances from American, Air Canada and British Airways that are also rated 'A' or 'A-'. Rating similarities are driven by similar levels of overcollateralization and high-quality pools of collateral. The 'BB' and 'BB+' ratings on the class B certificates are derived through a four-notch or five-notch uplift from JetBlue's IDR. The four-notch uplift reflects a high affirmation factor and benefit of a liquidity facility, whereas the five-notch uplift for 2020-1 benefits from an additional notch from strong recovery prospects. Key Assumptions - Capacity decreases by roughly 1% in 2025, followed by modest capacity growth thereafter; - Unit revenues decline modestly in 2025; - Unit revenues improve by mid-single digits in 2026 and 2027 as revenue initiatives mature; - Jet fuel prices of $2.40/gallon in 2025 and $2.50/gallon thereafter. EETCs Key assumptions within the rating case for the issuer include a harsh downside scenario in which JetBlue declares bankruptcy, chooses to reject the collateral aircraft, and where the aircraft are remarketed amid a severe slump in aircraft values. Fitch incorporates a 25% haircut to the A321-200 and A320-200, and a 20% haircut to the A321 NEO in its 'A' category stress tests. Recovery Analysis The recovery analysis assumes that JetBlue would be reorganized as a going concern (GC) in bankruptcy rather than liquidated. A 10% administrative claim on the enterprise value (EV) is assumed. In its analysis, Fitch uses a GC EBITDA estimate of $900 million reflecting its view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the EV. Fitch assumes an EV multiple of 5x leading to an estimated EV of 4,500. The GC EBITDA assumption is above the last 12 months (LTM) levels but below what Fitch expects JetBlue to generate beyond year three in its forecast. Fitch's recovery scenario envisions JetBlue experiencing financial distress due to a leveraged capital structure amid a sharp industry downturn. Post-restructuring EBITDA reflects a scenario where airline operating margins are structurally lower than pre-pandemic levels, potentially due to a combination of higher fuel prices, increasing competition, or weakening levels of demand. In its revised analysis, Fitch allocates a reduced portion of the company's overall EV to the loyalty program debt recovery to account for the possibility that value could shift from the loyalty program to the airline business in a bankruptcy scenario, in which the loyalty program debtholders are incentivized to ensure the survival of the airline as a GC. Fitch's analysis leads to ratings of 'B+'/'RR2' for JetBlue's loyalty program debt and secured revolver. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBIT margins remaining in the low single digits or below; - Liquidity including revolver availability falling to $1.5 billion; - EBITDAR fixed-charge coverage remaining below 1.1x; - Evidence of decreasing financial flexibility potentially illustrated by continued leveraging of assets to maintain liquidity. Factors that Could, Individually or Collectively, Lead to an Outlook Revision to Stable - Further progress toward JetBlue's strategic initiatives evidenced by improving margin trends; - Liquidity remaining above $2 billion; - EBITDAR fixed-charge coverage sustained at 1.25x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBIT margins improving to the mid-single digits or better; - Adjusted debt/EBITDAR below 5x; - EBITDAR fixed-charge coverage remaining above 1.5x. EETCs The class AA and A certificate ratings are primarily based on a top-down analysis based on the value of the collateral. Therefore, a negative rating action could be driven by an unexpected decline in collateral values. Senior tranche ratings could also be affected by a perceived change in the affirmation factor or deterioration in the underlying airline credit. The 2019-1 class A certificates are more susceptible to collateral value fluctuations due to a less aggressive amortization profile relative to the other transactions. Positive rating actions are not expected for these transactions in the near term, driven by current collateral coverage and limited LTV headroom under the 'BBB' stress scenario for the 2019-1 class A certificates. Subordinated tranche ratings are based off the underlying airline IDR. If JetBlue's IDR is downgraded to 'CCC+' from 'B-', the class B certificates could be notched downward. Positive rating actions could occur if JetBlue's IDR is upgraded. Liquidity and Debt Structure JetBlue ended the second quarter of 2025 with $3.7 billion in total liquidity, consisting of $2.1 billion in cash and equivalents, $929 million in investment securities and full availability under its $600 million revolver that matures in October 2029. Total liquidity equated to 40% of LTM revenue. Although JetBlue maintains a healthy liquidity balance, Fitch expects cash burn to remain significant in 2025 and 2026, likely necessitating debt funding against future deliveries to maintain cash. Failure to show progress toward stemming cash burn may drive future negative rating actions. JetBlue's debt structure primarily consists of its TrueBlue loyalty program financing and aircraft-secured debt including two series of EETCs and failed sale-leaseback transactions. EETCs Both tranches of debt in the JBLU 2020-1 transaction feature a dedicated liquidity facility provided by Natixis (A/F1/Stable). All three tranches of debt in the JBLU 2019-1 transaction feature a dedicated liquidity facility provided by Credit Agricole (A+/F1/Stable). Issuer Profile JetBlue is a low-cost air carrier that serves over 100 destinations throughout the U.S., the Caribbean, Mexico, Europe, and Latin America. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- JetBlue Airways Corporation LT IDR B- Downgrade B senior secured LT B+ Downgrade RR2 BB senior secured LT B+ Downgrade RR2 BB- JetBlue Airways Pass Through Trust Series 2020-1 senior secured LT A Affirmed A senior secured LT BB+ Affirmed BB+ JetBlue Airways Pass Through Trust Series 2019-1 senior secured LT A+ Affirmed A+ senior secured LT BBB- Downgrade BBB senior secured LT BB Downgrade BB+ JetBlue Loyalty, LP senior secured LT B+ Downgrade RR2 BB JOSEPH MOUNTAIN: Gets Interim OK to Use Cash Collateral ------------------------------------------------------- Joseph Mountain View Midstar, LLC received interim approval from the U.S. Bankruptcy Court for the Northern District of Texas to use cash collateral. The Debtor needs to use cash collateral to cover day-to-day expenses such as payroll, utilities and other operating costs. It faces financial distress caused by increased operating costs, tenant departures (including bankruptcies of major chains like Big Lots and GNC), and a market shift away from indoor malls. The Debtor's largest secured creditor is United Texas Bank, which holds a matured $15 million loan secured by a lien on the Mountain View Mall and its rental income. After failed negotiations on loan modifications, United Texas Bank filed foreclosure and collection lawsuits in Oklahoma and Texas, prompting the Debtor's bankruptcy filing. The Debtor said it needs to use approximately $600,000 in existing cash and $153,000 in accounts receivable, believed to be encumbered by United Texas Bank's lien, to fund operations during bankruptcy. In return, the bank would receive adequate protection in the form of replacement liens and superpriority claims to guard against any loss in value of its collateral. The Debtor is actively marketing the mall for sale through Marcus & Millichap, with five offers received to date. The property was initially listed at $13 million, later reduced to $12 million. A final hearing is set for August 25. About Joseph Mountain View Midstar LLC Joseph Mountain View Midstar LLC is a real estate company that leases nonresidential properties, including land and other commercial parcels not classified under traditional building categories. The Company operates in Hurst, Texas, and is associated with the Mountain View Mall and Shops at Ardmore. The Debtor sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-42648) on July 22, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Debtor is represented by Joseph Acosta, Esq. at CONDON TOBIN. United Texas Bank, as lender, is represented by: Jason M. Rudd, Esq. Scott D. Lawrence, Esq. Ethan A. Minshull, Esq. Catherine A. Curtis, Esq. Meghan D. Young, Esq. Wick Phillips Gould & Martin, LLP 3131 McKinney Avenue, Suite 500 Dallas, TX 75204 Phone: (214) 692-6200 Fax: (214) 692-6255 jason.rudd@wickphillips.com scott.lawrence@wickphillips.com ethan.minshull@wickphillips.com catherine.curtis@wickphillips.com meghan.young@wickphillips.com JP MORGAN 2025-HE2: Fitch Assigns Bsf Final Rating on Cl. B-2 Certs ------------------------------------------------------------------- Fitch Ratings has assigned final ratings to J.P. Morgan Mortgage Trust 2025-HE2 (JPMMT 2025-HE2). Entity/Debt Rating Prior ----------- ------ ----- JPMMT 2025-HE2 A-1 LT AAAsf New Rating AAA(EXP)sf M-1 LT AAsf New Rating AA(EXP)sf M-2 LT Asf New Rating A(EXP)sf M-3 LT BBBsf New Rating BBB(EXP)sf B-1 LT BBsf New Rating BB(EXP)sf B-2 LT Bsf New Rating B(EXP)sf B-3 LT NRsf New Rating NR(EXP)sf B-4 LT NRsf New Rating NR(EXP)sf B-X LT NRsf New Rating NR(EXP)sf A-IO-S LT NRsf New Rating NR(EXP)sf X LT NRsf New Rating NR(EXP)sf A-R LT NRsf New Rating NR(EXP)sf Transaction Summary Fitch rated the residential mortgage-backed certificates backed by first and second lien, prime, open home equity line of credit (HELOC) on residential properties to be issued by J.P. Morgan Mortgage Trust 2025-HE2 (JPMMT 2025-HE2), as indicated above. This is the seventh transaction to be rated by Fitch that includes prime-quality first and second lien HELOCs with open draws off the JPMMT shelf and the eight second lien HELOC transaction off the JPMMT shelf. The loans associated with the draws allocated to the participation certificate are 4,004 seasoned and non-seasoned, performing, prime-quality first and second lien HELOC loans with a current outstanding balance (as of the cutoff date) of $362.70 million. The collateral balance based on the maximum draw amount is $593.96 million, as determined by Fitch. As of the cutoff date, 100% of the HELOC lines are open or on a temporary freeze and may be opened in the future. The aggregate available credit line amount, as of the cutoff date, is expected to be $51.08 million, per transaction documents. As of the cutoff date, weighted average (WA) utilization of the HELOCs is 91.4%, per the transaction documents. Per Fitch's analysis, the main originators in the transaction are United Wholesale Mortgage (60.7%) and Better Mortgage Corporation (17.6%). All other originators make up less than 15% of the pool. The loans are serviced by NewRez LLC d/b/a Shellpoint Mortgage Servicing (Shellpoint [87.3%] and loanDepot.com LLC [12.7%]). Distributions of principal are based on a modified sequential structure, subject to the transaction's performance triggers. Interest payments are made sequentially to all classes, except B-4, which is a principal-only class, while losses are allocated reverse sequentially once excess spread is depleted. Draws will be funded by JPMorgan Chase Bank, National Association (JPMCB). This transaction will not use a variable funding note (VFN) structure; rather, it will use participation certificates. JPMMT 2025-HE2 is only entitled to cash flows based on the amount drawn as of the cutoff date. The remaining available draws will be allocated to the JPMorgan participation certificate (JPM PC) if they are drawn in the future. See the Highlights section for a description. In Fitch's analysis, Fitch assumes 100% of the HELOCs are 100% drawn on day one. As a result, all Fitch-determined percentages are based off the maximum HELOC draw amount. The servicers, Shellpoint and loanDepot.com, LLC, will not be advancing delinquent (DQ) monthly payments of principal and interest (P&I). The collateral comprises 100% adjustable-rate loans. These loans are adjusted based on the prime rate.The class A-1, M-1, M-2, M-3 and B-1 certificates are floating rate and use SOFR as the index; they are capped at the net WA coupon (WAC). The annual rate on class B-2 and B-3 certificates with respect to any distribution date (and the related accrual period) will be equal to the net WAC for such distribution date. The B-4 certificates are entitled to distributions of principal only and will not receive any distributions of interest. KEY RATING DRIVERS Updated Sustainable Home Prices (Negative): Fitch views the home price values of this pool as 10.9% above a long-term sustainable level (vs. 11% on a national level as of 4Q24, down 0.1% from the prior quarter, based on its updated view on sustainable home prices. Housing affordability is the worst it has been in decades, driven by both high interest rates and elevated home prices. Home prices increased 2.9% yoy nationally as of February 2025, despite modest regional declines, but are still being supported by limited inventory. High-Quality Prime Mortgage Pool (Positive): The participation interest is in a fixed pool of draws related to 4,004 prime-quality, performing, adjustable-rate open-ended HELOCs that have up to 10-year interest-only (IO) periods and maturities of up to 30 years. The open-ended HELOCs are secured by mainly second liens on primarily one- to four-family residential properties (including planned unit developments), condominiums, townhouses, and a site condo totaling $595.60 million (includes the maximum HELOC draw amount). The loans were made to borrowers with strong credit profiles and relatively low leverage. The loans are seasoned at an average of twelve months, according to Fitch, and five months, per the transaction documents. The pool has a WA original FICO score of 748, as determined by Fitch (747 per transaction documents), indicative of very high credit-quality borrowers. About 48% of the loans, as determined by Fitch, have a borrower with an original FICO score equal to or above 750. The original WA combined loan-to-value (CLTV) ratio of 71.4%, as determined by Fitch, translates to a sustainable LTV (sLTV) ratio of 78.3%. The transaction documents stated a WA drawn LTV of 21.6% and a WA drawn CLTV of 68.2%. The LTVs represent moderate borrower equity in the property and reduced default risk, compared with a borrower CLTV of over 80%. Of the pool loans, 32.4% were originated by a retail or correspondent channel with the remaining 67.6% originated by a broker channel. Of the loans, 100% are underwritten to full documentation. Based on Fitch's documentation review, it considered 95.9% of the loans to be fully documented. Of the pool, 91.9% consists of loans where the borrower maintains a primary or secondary residence, and the remaining 8.1% represents investor loans. Single family homes, planned unit developments (PUDs), townhouses and single-family attached dwellings constitute 91.7% of the pool (or 91.1%, per the transaction documents). Condominiums and a site condo make up 4.3% (4.8% per the transaction documents), while multifamily homes make up 4.0% (4.1% per the transaction documents). According to Fitch, the pool consists of loans with the following loan purposes: 98.0% cashout refinances (loans that have a cashout amount greater than 2% of the original balance), and 1.7% purchases and 0.3% refinances. The transaction documents show 97.4% of the pool to be cashouts. Fitch considers a loan to be a rate term refinance if the cashout amount is less than $5,000, which explains the difference in the cashout amount percentages. Fitch viewed the collateral to be 100% current. None of the loans in the pool are over $1.0 million, and the maximum draw amount is $500,000. Of the pool loans, 41.555% (42% per the transaction documents) are concentrated in California. The largest MSA concentration is in the Los Angeles MSA (16.9%), followed by the New York MSA (5.9%) and the Riverdale MSA (5.8%). The top three MSAs account for 28.7% of the pool. As a result, no probability of default (PD) penalty was applied for geographic concentration. Second Lien HELOC Collateral (Negative): Based on Fitch's analysis of the pool that is based on the maximum HELOC draw amount, the majority of the collateral pool (98.6.%) consists of second lien HELOC loans originated by United Wholesale Mortgage, Better Mortgage Corporation and other originators (the second lien percentage is 98.5% based on the transaction documents). Fitch assumed no recovery and 100% loss severity (LS) on second lien loans, based on the historical behavior of the loans in economic stress scenarios. Fitch assumes second lien loans default at a rate comparable to first lien loans. After controlling for credit attributes, no additional penalty was applied. Modified Sequential Structure with No Advancing of Delinquent P&I (Mixed): The proposed structure is a modified-sequential structure in which principal is distributed pro rata to classes A-1, M-1, M-2 and M-3 to the extent the performance triggers are passing. To the extent the triggers are failing, principal is paid sequentially. The transaction also benefits from excess spread that can be used to reimburse for realized and cumulative losses, as well as cap carryover amounts. The transaction has a lockout feature benefiting more senior classes if performance deteriorates. If the applicable credit support percentage of classes M-1, M-2 or M-3 is less than the sum of (i) 150% of the original applicable credit support percentage for that class plus (ii) 50% of the NPL percentage plus (iii) the charged off loan percentage, then that class is locked out of receiving principal payments and the principal payments are redirected toward the most senior class. To the extent any class of certificates is a locked-out class, each class of certificates subordinate to such locked-out class will also be a locked out class. Due to this lockout feature, the class M will be locked out starting on day one. Classes A-1, M-1, M-2, M-3, and B-1 are floating-rate classes based on the SOFR index and are capped at the net WAC. The annual rate on the class B-2 and B-3 certificates with respect to any distribution date (and the related accrual period) will be equal to the net WAC for such distribution date. Class B-4 is a principal-only class and is not entitled to receive interest. If no excess spread is available to absorb losses, losses will be allocated to all classes reverse sequentially, starting with class B-4. The servicer will not advance delinquent monthly payments of P&I. 180-Day Chargeoff Feature (Positive): Loans that become 180 days delinquent based on the Mortgage Bankers Association (MBA) delinquency method, except for those in a forbearance plan, will be charged off. The 180-day chargeoff feature will result in losses being incurred sooner, while a larger amount of excess interest is available to protect against losses. This compares favorably to a delayed liquidation scenario, whereby the loss occurs later in the life of the transaction and less excess is available. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Fitch incorporates a sensitivity analysis to demonstrate how the ratings would react to steeper market value declines (MVDs) than assumed at the MSA level. Sensitivity analyses was conducted at the state and national levels to assess the effect of higher MVDs for the subject pool, as well as lower MVDs, illustrated by a gain in home prices. This defined negative rating sensitivity analysis demonstrates how the ratings would react to steeper MVDs at the national level. The analysis assumes MVDs of 10.0%, 20.0% and 30.0% in addition to the model-projected 41.4% at 'AAA'. The analysis indicates that there is some potential rating migration with higher MVDs for all rated classes, compared with the model projection. Specifically, a 10% additional decline in home prices would lower all rated classes by one full category. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Fitch incorporates a sensitivity analysis to demonstrate how the ratings would react to steeper MVDs than assumed at the MSA level. Sensitivity analyses was conducted at the state and national levels to assess the effect of higher MVDs for the subject pool as well as lower MVDs, illustrated by a gain in home prices. This defined positive rating sensitivity analysis demonstrates how the ratings would react to positive home price growth of 10% with no assumed overvaluation. Excluding the senior class, which is already rated 'AAAsf', the analysis indicates there is potential positive rating migration for all of the rated classes. Specifically, a 10% gain in home prices would result in a full category upgrade for the rated class excluding those being assigned ratings of 'AAAsf'. This section provides insight into the model-implied sensitivities the transaction faces when one assumption is modified, while holding others equal. The modeling process uses the modification of these variables to reflect asset performance in up and down environments. The results should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. It should not be used as an indicator of possible future performance. CRITERIA VARIATION For this transaction, Fitch applied a variation to Fitch's U.S. RMBS Cash Flow Analysis Criteria in order to change the shape and CPR speeds of the benchmark prepayment curves. Specifically, Fitch used benchmark prepayment curves that have the shape as Fitch's seven-year ARM prepayment curve and used benchmark prepayments speeds that range from 15% to 37.5% CPR. These changes more accurately reflect the historical prepayment behavior of HELOCs that tend to prepay closer to the end of the IO period and prepay slower than fixed rate second lien products and first lien products. Applying the variation resulted in ratings that are one rating category higher than existing criteria would suggest. Fitch rated the first JPMMT HELOC in 2023 and the shelf has been a programmatic HELOC issuer. As such, Fitch now has 12 months of performance data on post-crisis prime quality HELOC performance. Based on this additional historical performance data, Fitch reviewed its benchmark prepayment curves used for HELOCs and found that revisions were needed in order to more accurately reflect when prepayments occur and how fast prepayment speeds are based on this additional data and HELOC borrower behavior. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Fitch was provided with Form ABS Due Diligence-15E (Form 15E) as prepared by SitusAMC, Consolidated Analytics, and Digital Risk. The third-party due diligence described in Form 15E focused on four areas: compliance review, credit review, valuation review and data integrity. Fitch considered this information in its analysis and, as a result, Fitch decreased its loss expectations by 0.99% at the 'AAAsf' stress due to 100% due diligence with no material findings. DATA ADEQUACY Fitch relied on an independent third-party due diligence review performed on 100% of the pool. The third-party due diligence was generally consistent with Fitch's "U.S. RMBS Rating Criteria." SitusAMC, Consolidated Analytics, and Digital Risk were engaged to perform the review. Loans reviewed under this engagement were given compliance, credit and valuation grades and assigned initial grades for each subcategory. Minimal exceptions and waivers were noted in the due diligence reports. Refer to the "Third-Party Due Diligence" section for more detail. Fitch also utilized data files provided by the issuer on its SEC Rule 17g-5 designated website. Fitch received loan level information based on the ResiPLS data layout format, and the data are considered comprehensive. The data contained in the ResiPLS layout data tape were reviewed by the due diligence companies, and no material discrepancies were noted. ESG Considerations 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. JUXTAPOSE HOSPITALITY: Claims to be Paid from Future Income ----------------------------------------------------------- Juxtapose Hospitality Group Inc. filed with the U.S. Bankruptcy Court for the Northern District of Georgia a First Plan of Reorganization dated July 28, 2025. The Debtor is a Delaware corporation, with its principal place of business in Georgia. The Debtor owns a subsidiary that does business as "The James Room", located at 661 Auburn Ave NE, Atlanta, Georgia, on the "Beltline". The Debtor's primary business is operating as a holding company for the operation of restaurants, bars, and coffee shops. In its capacity as the parent company, Debtor facilitates financing, and assists with logistics that enable operations of the subsidiary (ranging from equipment leasing to liquor license and rental assistance). The Debtor previously had undertaken to open a location apart from The James Room's current location. In its efforts to open a second location, Debtor incurred substantial debts. Debtor was ultimately unsuccessful in opening the second location, but remained obligated on the debts incurred in that effort. As a result of its financial issues, Debtor had fallen behind on rent, and its landlord, AP Studioplex Commercial Master Unit Owner, LLC a/k/a Asana (the "Landlord"), had commenced a dispossessory action. The Debtor has filed this case to preserve its going concern value, and to protect its ability to facilitate the operations of its subsidiary, The James Room, which can upstream profits to Debtor to pay its creditors. The Plan proponent's financial projections show that the Debtor will have projected disposable income in the amount of not less than $5,000 per month. The Plan shall be for a 36-month term. Debtor shall remit its projected disposable income to creditors in accordance with Section 1191(c) and (d) of the Bankruptcy Code and as described in this Plan until creditors are paid in full. Nothing shall prevent Debtor from making any or all Plan payments quicker than set forth herein, if financial circumstances make such payments possible. This Plan proposes to pay creditors of Debtor from Debtor's future projected monthly income. This plan addresses the secured claim of the SBA, the Landlord's rent arrearage claim, the administrative expenses of this bankruptcy case, the claims of general unsecured claims, and Debtor's equity interests. This Plan also provides for the payment of administrative claims in full. Class 4 consists of General (non-priority) Unsecured Claims, other than the Landlord's rent arrearage claim. The Debtor shall pay a dividend to all general unsecured claimholders, not separately classified, out of the remaining projected net disposable income not committed to payment of the GA DOR Claim and Landlord Rent Cure Claim. This Class is impaired. Class 5 consists of equity interests. Equity interests are being retained, as this is a Subchapter V case and the absolute priority rule does not apply. The Debtor will fund the plan payments through its future income. The Debtor has filed financial projections with this Plan showing that the proposed monthly payments are feasible based on projected income and expenses. A full-text copy of the First Plan of Reorganization dated July 28, 2025 is available at https://urlcurt.com/u?l=LSfZCV from PacerMonitor.com at no charge. Counsel to the Debtor: Michael D. Robl, Esq. Maxwell W. Bowen, Esq. ROBL & BOWEN, LLC 3754 Lavista Road, Suite 250 Tucker, GA 30084 Tel: (404) 373-5153 Fax: (404) 537-1761 E-mail: max@roblgroup.com E-mail: michael@roblgroup.com About Juxtapose Hospitality Group Inc. Juxtapose Hospitality Group Inc. is an Atlanta-based hospitality company. Juxtapose Hospitality Group Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-54709) on April 29, 2025. In its petition, the Debtor estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. The Debtor is represented by Michael D. Robl, Esq. at Robl Law Group LLC. KALEIDOSCOPE SCHOOL: Gets Final OK to Use Cash Collateral --------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Washington granted Kaleidoscope School final authorization to use cash collateral. The final order authorized the Debtor to use cash collateral for post-petition operating expenses in accordance with its submitted budget. The Debtor may exceed the payment amounts contemplated by a line item of the budget for any monthly period so long as its total payments for the line item for such period do not exceed the budgeted amount by more than 15%. As adequate protection for the Debtor's use of its cash collateral, the U.S. Small Business Administration will receive a monthly payment of $641 and a replacement lien on post-petition cash, receivables, inventory and the proceeds thereof, with the same priority as its pre-bankruptcy liens. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/c6tNB from PacerMonitor.com. About Kaleidoscope School Kaleidoscope School sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-11658-TWD) on June 16, 2025. In the petition signed by Mary-Pat Soukup, director, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Judge Timothy W. Dore oversees the case. Clyde Shavers, Esq., at Lyda Law Firm, represents the Debtor as legal counsel. KBS REIT: Five Directors Fail Majority Vote, Stay as Holdovers -------------------------------------------------------------- KBS Real Estate Investment Trust III, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that it held its annual meeting of stockholders at the offices of KBS, 800 Newport Center Drive, 7th Floor Boardroom, Newport Beach, California 92660. At the Annual Meeting, the Company's stockholders voted in person or by proxy on: (1) the election of five directors to hold office for one-year terms; and (2) the ratification of the appointment of Ernst & Young LLP as the Company's independent registered public accounting firm for the year ending December 31, 2025. As related to the election of directors, none of the director nominees received affirmative votes from a majority of the shares present in person or by proxy at the Annual Meeting to be elected to the board of directors. Under Maryland law, if an incumbent director nominee fails to receive the required number of votes for re-election, he will continue to serve as a "hold-over" director until his successor is duly elected and qualified. As a result, each of the five director nominees will continue to serve as a "hold-over" director. There were 56,497,443 broker non-votes with respect to the election of the five director nominees. A "broker non-vote" occurs when a broker holding stock on behalf of a beneficial owner submits a proxy but does not vote on a particular proposal because the broker does not have discretionary voting power with respect to that particular proposal and has not received instructions from the beneficial owner. Brokers are precluded from exercising their voting discretion with respect to the approval of non-routine matters, such as the election of directors. Absent specific instructions from the beneficial owner of such shares, brokers will not vote those shares in the election of directors. Broker non-votes have the effect of a vote against the election of each nominee for director. A broker non-vote is not an indication of how the beneficial owner would have voted; it simply means that the beneficial owner did not instruct the broker as to how to vote his or her share. The number of votes cast for and votes cast against, and the number of abstentions with respect to, each of the director nominees as well as the number of broker non-votes were as follows: 1. Charles J. Schreiber, Jr. * Votes For: 16,094,600 * Votes Against: 1,929,618 * Abstentions: 839,838 * Broker Non-Votes: 56,497,443 2. Marc DeLuca * Votes For: 16,049,544 * Votes Against: 1,920,133 * Abstentions: 894,379 * Broker Non-Votes: 56,497,443 3. Stuart A. Gabriel, Ph.D. * Votes For: 16,012,172 * Votes Against: 1,912,113 * Abstentions: 939,771 * Broker Non-Votes: 56,497,443 4. Robert Milkovich * Votes For: 16,065,026 * Votes Against: 1,847,128 * Abstentions: 951,902 * Broker Non-Votes: 56,497,443 5. Ron D. Sturzenegger * Votes For: 16,038,988 * Votes Against: 1,871,049 * Abstentions: 954,019 * Broker Non-Votes: 56,497,443 The appointment of E&Y was ratified. The number of votes cast for and votes cast against, and the number of abstentions with respect to, the ratification of the appointment of E&Y as the Company's independent registered public accounting firm for the year ending December 31, 2025 were as follows: * Votes For: 72,604,773 * Votes Against: 1,425,941 * Abstentions: 1,330,785 * Broker Non-Votes: -- About KBS Real Estate KBS Real Estate Investment Trust III, Inc. is a Maryland corporation that has elected to be taxed as a real estate investment trust and it intends to continue to operate in such a manner. The Company conducts its business primarily through its Operating Partnership, of which the Company is the sole general partner. Irvine, California-based Ernst & Young LLP, the Company's auditor since 2010, issued a "going concern" qualification in its report dated March 14, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has $467 million of loan maturities and required principal paydowns within one year from the date of issuance of the consolidated financial statements, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. As of Dec. 31, 2024, KBS Real Estate Investment Trust III had total assets of $1.82 billion, total liabilities of $1.57 billion and total stockholders' equity of $256.56 million. KDZ REALTY: Peter Barrett of Kutak Rock Named Subchapter V Trustee ------------------------------------------------------------------ The Acting U.S. Trustee for Region 4 appointed Peter Barrett, Esq., at Kutak Rock, LLP as Subchapter V trustee for KDZ Realty, LLC. Mr. Barrett will charge $540 per hour for his services as Subchapter V trustee and will seek reimbursement for work-related expenses incurred. Mr. Barrett declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Peter J. Barrett, Esq. Kutak Rock, LLP 901 East Byrd St., Ste. 1000 Richmond, VA 23219 Phone: (804) 644-1700 Email: Peter.barrett@kutakrock.com About KDZ Realty LLC KDZ Realty, LLC is a Richmond-based real estate company that operates in the real estate sector (NAICS code 5311) with its principal place of business at 2204 Redd Street, Richmond, Va. KDZ Realty sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 25-32924) on July 24, 2025. In its petition, the Debtor reported estimated assets between $500,000 and $1 million and estimated liabilities between $100,000 and $500,000. The Debtor is represented by Martin C. Conway, Esq., at Conway Law Group, PC. KLIMA CONTROL: Seeks to Hire ALTA Collaborative PLLC as Accountant ------------------------------------------------------------------ Klima Control Air Conditioning & Heating, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Jaime Angarita and ALTA Collaborative PLLC as accountant. The firm will assist with the Debtors' projections for its Chapter 11 Plan of Reorganization and will assist the Debtors in the preparation of monthly reports. The accountant's fees are $450 for partners, $275 for associates, and $115 per hour for paraprofessionals. Mr. Angarita assured the court that he is disinterested as required by 11 U.S.C. Sec. 327(a) and a verified statement as required under Fed. R. Bankr. P. 2014. The firm can be reached through: Jaime A Angarita, CPA, ABV, CIRA ALTA Collaborative PLLC 150 S Pine Island Rd, Suite 300 Plantation, FL 33324 About Klima Control Air Conditioning & Heating Klima Control Air Conditioning & Heating, LLC is an air conditioning and heating services provider operating as Super Cool in Florida. It specializes in HVAC installation, maintenance, and repair services with locations in Pompano Beach and West Palm Beach. Klima Control Air Conditioning & Heating relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-17717) on July 7, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Judge Scott M. Grossman handles the case. The Debtor is represented by Shirley Palumbo, Esq. KOLSTEIN MUSIC: Court Extends Cash Collateral Access to Aug. 20 --------------------------------------------------------------- Kolstein Music, Inc. received second interim approval from the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, to use cash collateral through August 20. The second interim order signed by Judge Tiffany Geyer authorized the Debtor to use cash collateral to pay the amounts expressly authorized by the court; the expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and additional amounts subject to approval by secured creditor, the U.S. Small Business Administration. As adequate protection for the Debtor's use of its cash collateral, SBA and other secured creditors will have a perfected post-petition replacement lien on the cash collateral to the same extent and with the same validity and priority as their pre-bankruptcy lien. In addition, the Debtor was ordered to keep its property insured in accordance with its loan and security agreements with secured creditors. The next hearing is scheduled for August 20. The Debtor's cash collateral is comprised of cash on hand and funds to be received during normal operations, which may be encumbered by the lien of SBA by virtue of a UCC-1 financing statement filed with the State of New York on May 30, 2020. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/mblpt from PacerMonitor.com. About Kolstein Music Inc. Kolstein Music, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-03511) on June 8, 2025, listing up to $1 million in both assets and liabilities. Andrew Layden serves as Subchapter V trustee. Judge Tiffany P. Geyer oversees the case. The Debtor is represented by: Daniel A. Velasquez, Esq. Latham, Luna, Eden & Beaudine, LLP Tel: 407-481-5800 dvelasquez@lathamluna.com LAVIE CARE: No Decline in Resident Care, PCO Report Says -------------------------------------------------------- Joani Latimer, the patient care ombudsman, filed her fourth report regarding the quality of patient care provided by LaVie Care Centers, LLC. The report covers the period from May 8 to July 7. The ombudsman representative (OR) visited the Ashland Nursing and Rehabilitation facility on June 9 and 23. On both visits, the OR noted there was a strong odor upon entering the facility. On June 9, residents stated they were hungry. At the same time, an alarm was going off and it appeared that the nurse on the floor did not hear the alarm. No CNAs were observed in the unit. During the June 23 visit at noon, the OR observed residents had not received their lunch. Further observations included the housekeeper in the memory care unit alerting the medication aide that a resident was on the floor, which resulted in the nurse and the DON entering the room to assist the resident who was on the floor. The OR met with the Executive Director and DON on May 28. The OR observed that the residents appeared clean and staff members were noted interacting appropriately with the residents during the provision of care. There was no indication of a decline in resident care since the last OR visit. The OR addressed an issue with medication for one resident who requested OR check on his medications. On May 8 and June 6, the OR visited the Consulate Health Care of Norfolk. The OR received no complaints from residents interviewed. There was no indication of a decline in resident care since the last OR visit. The OR interviewed several residents and did not receive any complaints that had not already been addressed by the administrator. The OR met with the administrator and DON who stated there had been no issues with supplies. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=5ylpCG from Kurtzman Carson Consultants, LLC, claims agent. The ombudsman may be reached at: Joani Latimer State Long-Term Care Ombudsman 8004 Franklin Farms Drive Richmond, Virginia 23229 Phone: (804) 565-1600 Email: Joani.Latimer@dars.virginia.gov About Lavie Care Centers LaVie Care Centers, LLC, is the parent company of skilled nursing facility operators and providers, with facilities primarily located in Mississippi, North Carolina, Pennsylvania and Virginia. The company operates 43 licensed facilities, with 4,300 beds, providing short-term rehabilitation, comprehensive post-acute care, and long-term care to its residents. On June 2 and 3, 2024, LaVie Care Centers and 281 affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 24-55507), before Judge Paul Baisier in Atlanta. The Debtors tapped McDermott Will & Emery, LLP as legal counsel; Stout Capital, LLC as investment banker; and Ankura Consulting as financial advisor. M. Benjamin Jones, senior managing director at Ankura, serves as the Debtors' chief restructuring officer. Kurtzman Carson Consultants, LLC is the claims agent, and maintains the page http://www.kccllc.com/LaVie The U.S. Trustee for Region 21 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. Troutman Pepper Hamilton Sanders, LLP and FTI Consulting, Inc. serve as the committee's legal counsel and financial advisor, respectively. Joani Latimer is the patient care ombudsman appointed in the cases. LAZARUS INDUSTRIES: Committee Taps Cristo Law Group as Counsel -------------------------------------------------------------- The official committee of unsecured creditors of Lazarus Industries, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of New York to employ Cristo Law Group, LLC as attorney. The firm's services include: a. advising the committee regarding its rights and obligations under the Bankruptcy; b. assisting in the investigation of the Debtor's assets, liabilities, and financial affairs; c. assisting in the formulation and negotiation of a plan of reorganization or liquidation; d. representing the Committee in litigation. contested matters and adversary proceedings; and e. performing other legal services as may be necessary to fulfill the Committee's duties. The firm will be paid at these rates: Partners $400 per hour Associates $200 per hour Paralegals $100 per hour The firm will be paid a retainer in the amount of $10,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. David H. Healy, Esq., a partner at Cristo Law Group, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: David H. Healy, Esq. Cristo Law Group, LLC 45 Exchange Blvd., Suite 888 Rochester, NY 14614 Tel: (585) 454-2181 Email: dealy@trevettcristo.com About Lazarus Industries Lazarus Industries, LLC is a construction, fabrication, and manufacturing company based in Buffalo, New York. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.N.Y. Case No. 25-10417) on April 16, 2025. In the petition signed by Frank Lazarus, managing member, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Carl L. Bucki oversees the case. The Debtor tapped Frederick J. Gawronski, Esq., at Colligan Law, LLP as bankruptcy counsel and Sage Law Firm Group PLLC as special counsel. LEFEVER MATTSON: Seeks to Extend Plan Exclusivity to October 31 --------------------------------------------------------------- Lefever Mattson and its affiliates asked the U.S. Bankruptcy Court for the Northern District of California to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to October 31 and December 31, 2025, respectively. The Debtors explain that the companies and Committee filed the Term Sheet on July 14, 2025, and have been in continuous discussions in recent weeks regarding drafts of the plan and solicitation materials. Both the Committee and the Debtors (and now KSMP) and their professionals are working diligently and in good faith toward formulation of a plan that will satisfy all parties. In addition to their negotiations with the Committee, the Debtors have entered into numerous stipulations with various secured lenders for the use of cash collateral and have provided information to them regarding the sale and marketing of their real property collateral. The Debtors are continuing to pay their bills as they come due in the operation of their commercial and residential rental properties. The Debtors claim that the Chapter 11 Cases are large and complex: they involve 61 Debtor entities (not counting KSMP), nearly 200 diverse pieces of real property (also not counting KSMP's several dozen properties), and claims filed by hundreds of defrauded investors, many of whom have asserted claims and interests against multiple Debtors (and may likely assert claims against KSMP). Taken separately, one or more of the Chapter 11 Cases may appear simple on its surface. The Debtors assert that they require additional time to prepare a disclosure statement that provides adequate information regarding the complex history of the Debtors and the claims and interests asserted in these Chapter 11 Cases. Less than a year has passed between the petition date of 58 of the Debtors and the filing of this Motion, and the entry of the KSMP Order for Relief, which has proved to be a critical milestone in the plan process, was less than two months ago. Attorneys for the Debtors: Tobias S. Keller, Esq. David A. Taylor, Esq. Thomas B. Rupp, Esq. Keller Benvenutti Kim LLP 425 Market Street, 26th Floor San Francisco, California 94105 Telephone: (415) 496-6723 Facsimile: (650) 636-9251 Email: tkeller@kbkllp.com dtaylor@kbkllp.com About LeFever Mattson LeFever Mattson, a California corporation, manages a large real estate portfolio. Timothy LeFever and Kenneth W. Mattson each owns 50% of the equity in the company. Based in Citrus Heights, Calif., LeFever Mattson manages a portfolio of more than 200 properties, comprised of commercial, residential, office, and mixed-use real estate, as well as vacant land, located throughout Northern California, primarily in Sonoma, Sacramento, and Solano Counties. It generates income from the properties through rents and use the proceeds to fund its operations. LeFever Mattson and its affiliates filed voluntary Chapter 11 petitions (Bankr. N.D. Cal. Lead Case No. 24-10545) on September 12, 2024. At the time of the filing, LeFever Mattson listed $100 million to $500 million in assets and $10 million to $50 million in liabilities. Judge Charles Novack oversees the cases. Keller Benvenutti Kim LLP, led by Thomas B. Rupp, is the Debtors' counsel. Kurtzman Carson Consultants, LLC is the Debtors' claims and noticing agent. LEVEL 3 FINANCING: S&P Rates First-Lien Senior Secured Notes 'B+' ----------------------------------------------------------------- S&P Global Ratings assigned its 'B+' issue-level rating and '1' recovery rating to Level 3 Financing Inc.'s proposed $1.25 billion of first-lien senior secured notes due 2034. Level 3 is a wholly owned subsidiary of U.S.-based telecommunications service provider Lumen Technologies Inc. The '1' recovery rating indicates its expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a payment default. The company will use proceeds from these notes to redeem about $1.085 billion of its 11% senior secured notes due 2029 and pay a $165 million make-whole premium. S&P views this transaction as credit positive for Lumen because it will push out its debt maturities by over four years and reduce its interest expense, given that we expect the pricing on the new notes will be more favorable than for its 11% secured notes. S&P said, "All of our existing ratings on parent Lumen, including the 'B-' issuer credit rating, are unchanged because we do not expect the transaction will affect its credit metrics and continue to forecast its S&P Global Ratings-adjusted leverage will be in the in the mid- to high-4x area in 2026 following the $5.75 billion sale of its fiber-to-the-home (FFTH) broadband business to AT&T Inc. We also expect free operating cash flow (FOCF) in 2025 will improve by around $500 million because of recent tax legislation, which will improve its liquidity position as it executes on its business transformation." LION RIBBON: Seeks to Sell 4 Owned Locations Properties ------------------------------------------------------- Lion Ribbon Texas Corp. and its affiliates, seek permission from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to sell Assets, free and clear of liens. Debtor IG Design Group Americas, Inc. and its Debtor and non-Debtor subsidiaries comprise a global company that designs, manufactures, and distributes high-quality consumer crafting, gifting and stationery products for celebrations, hobbies and creative play. The Company is home to a number of brands, some of which were established more than a century ago, and distributes branded and private-label products either directly to consumers or to a wide range of high-profile Fortune 100 customers. The Company operates across the world with design, manufacturing, distribution, and production facilities located throughout North America and supporting facilities in India, Hong Kong, China, the United Kingdom, and Australia. On July 7, 2025, the Court entered an order authorizing joint administration of the Chapter 11 Cases for procedural purposes only. The Debtors continue to manage and operate their businesses as debtors in possession under sections 1107 and 1108 of the Bankruptcy Code. The Debtors entered into the Disposition Services Agreement and filed the Disposition Services Motion knowing that the Huron IB Team would likely identify additional assets to be sold outside of the going concern sale process. Shortly after the Petition Date, the Debtors and the Huron IB Team determined that certain of the Owned Locations will likely be excluded from such going concern sales and that stakeholder recoveries could be maximized by immediately engaging a service provider with the requisite skill and experience to efficiently market and sell such designated Owned Locations. The Owned Locations are: -- 2015 West Front Street Berwick, PA 18603: Administrative Building -- 1200 E 9th St Berwick, PA 18603: Poly Ribbon Manufacturing Facility -- 857 Willow Cir Hagerstown, MD 21740: Manufacturing and Distribution Facility -- 832 Summerland Ave Batesburg-Leesville, SC 39006: Manufacturing Facility The Debtors and their advisors engaged in arm's-length and good faith negotiations with the Real Estate Liquidator and its counsel and ultimately reached an agreement as to the services to be provided by the Real Estate Liquidator and the appropriate structure of fees and expenses to be associated with any sale of the Owned Locations. In consideration for the Owned Location Services, the Real Estate Liquidator will earn a fee equal to 5% of the gross proceeds realized from any such sale, net of applicable sales taxes and will separately be provided with $35,000 to use in marketing the Liquidating Owned Locations. The Location Fees and Expenses will be deemed administrative expense claims, subject to the subordination of the Subordinated Location Sale Fees. The Debtors are engaged in a process to sell and liquidate all of their assets and, thus, will ultimately have no continuing need for the Owned Locations. Indeed, for certain of the Owned Locations, once the assets that are held there are themselves monetized by the Liquidation Agent, the Owned Locations will no longer be needed. The Debtors have determined, in their business judgment, that the Real Estate Liquidator is best positioned to effectively and efficiently market and sell the Owned Locations given its experience in conducting similar real property sales as well as its ability to seamlessly coordinate with the Liquidating Agent in connection with such agent's sale of the Liquidating Assets as described in the Disposition Services Motion. The Debtors further request approval to sell the Owned Locations free and clear of liens, claims, interests and encumbrances, in accordance with section 363 of the Bankruptcy Code. The Debtors further request that the Court authorize the Debtors to pay the Real Estate Liquidator the Location Sale Fees, subject to the subordination of Subordinated Location Sale Fees, and the Location Expenses to enable the Real Estate Liquidator to properly market any designated Owned Locations. The Debtors respectfully request emergency consideration of this Motion with regard to the relief sought in the Order, pursuant to Bankruptcy Local Rule 9013-1(i), the Complex Case Procedures. About Lion Ribbon Texas Corp. Lion Ribbon Texas Corp. and affiliates design, manufacture, and distribute consumer crafting, gifting, and stationery products for celebrations, hobbies and creative play. They operate globally, with facilities across North America and supporting operations in India, Hong Kong, China, the United Kingdom, and Australia. They supply both branded and private-label products to consumers and major corporate clients. The Debtors sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 25-90164) on July 3, 2025. In their petitions, the Debtors reported $100 million to $500 million in assets and liabilities on a consolidated basis. Judge‚ Christopher M. Lopez handles the cases. The Debtors are represented by Caroline A. Reckler, Esq., Ray C. Schrock, Esq., Adam S. Ravin, Esq., Randall Carl Weber-Levine, Esq., and Meghana Vunnamadala, Esq., at Latham & Watkins, LLP. The Debtors tapped Huron Consulting Services, LLC as investment banker and financial advisor; Deloitte Tax, LLP as tax services provider; Liskow & Lewis, APLC as conflicts counsel; C Street Advisory Group, LLC as communications advisor; and Kroll Restructuring Administration, LLC as claims, noticing and solicitation agent. LIVEONE INC: Robert Ellin, Affiliates Disclose Equity Stake ----------------------------------------------------------- Robert S. Ellin, Trinad Capital Master Fund, Ltd., Trinad Capital Management, LLC, and JJAT Corp. (collectively, the "Reporting Persons") disclosed in a Schedule 13D (Amendment No. 2) filed with the U.S. Securities and Exchange Commission that as of July 15, 2025, they beneficially own the following shares of LiveOne, Inc.'s common stock, $0.001 par value per share: * Robert S. Ellin beneficially owns 23,969,618 shares (including shares directly and indirectly held through affiliated entities and instruments such as options and warrants), representing approximately 22.8% of the 105,317,482 total outstanding shares (including shares issuable upon conversion of preferred stock, exercise of warrants, and vested options). * Trinad Capital Master Fund, Ltd. beneficially owns 13,679,259 shares (including 987,252 shares issuable upon conversion of Series A Preferred Stock and 2,035,399 shares issuable upon exercise of warrants), representing 13.1% of the outstanding common stock. * Trinad Capital Management, LLC beneficially owns 14,395,475 shares (including 716,216 shares held directly and shares beneficially owned by Trinad Capital), representing 13.8% of the outstanding common stock. * JJAT Corp. beneficially owns 6,817,810 shares directly, representing 6.7% of the outstanding common stock. Each of the Reporting Persons may be reached through: Robert S. Ellin c/o LiveOne, Inc., 269 South Beverly Drive, Suite #1450 Beverly Hills, CA, 90212 Tel: (310) 601-2505 A full-text copy of Mr. Ellin's SEC Report is available at: https://tinyurl.com/cv2uepb2 About LiveOne Headquartered in Beverly Hills, California, LiveOne, Inc. -- www.liveone.com -- is a creator-first, music, entertainment and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. The Company is a pioneer in the acquisition, distribution and monetization of live music events, Internet radio, podcasting/vodcasting and music-related membership, streaming and video content. Through its comprehensive service offerings and innovative content platform, it provides music fans the ability to listen, watch, attend, engage and transact. Serving a global audience, the Company's mission is to bring the experience of live music and entertainment to consumers wherever music and entertainment is watched, listened to, discussed, deliberated or performed around the world. As of March 31, 2024, the Company had $40 million in total assets, $48.9 million in total liabilities, and $8.4 million in total stockholders' deficit. New York, New York-based Macias Gini & O'Connell LLP, the Company's auditor since 2022, a "going concern" qualification dated July 15, 2025, attached to the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025. Macias Gini & O'Connell cited that the Company has suffered recurring losses from operations, negative cash flows from operating activities and has a net capital deficiency. These matters raise substantial doubt about the Company's ability to continue as a going concern. LOUKYA INC: Seeks to Hire Gillman Capone LLC as Attorneys --------------------------------------------------------- Loukya, Inc. seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to employ Gillman Capone LLC as attorneys. The firm will render these services: a. advising the Debtor with respect to the power, duties and responsibilities in the continued management of the financial affairs as debtors, including the rights and remedies of the debtors-in-possession with respect to its assets and with respect to the claims of creditors; b. advising the Debtor with respect to preparing and obtaining approval of a Plan of Reorganization/Liquidation; c. preparing on behalf of the Debtor, as necessary applications, motions, complaints, answers, orders, reports and other pleadings and documents; d. appearing before this Court and other officials and tribunals, if necessary, and protecting the interests of the Debtors in federal, state and foreign jurisdictions and administrative proceedings; e. negotiating and preparing documents relating to the use, liquidation, and disposition of assets, as requested by the Debtor; f. negotiating and formulating a Plan; g. advising the Debtor concerning the day-to-day operations of its business and the administration of its estate as debtors-in-possession; h. performing such other legal services for the Debtor, as may be necessary and appropriate. The individuals presently designated to represent the Debtor and their rates are: Justin M. Gillman, Esq. $525 per hour Paralegals $235 per hour Support Staff $125 per hour The firm received a retainer in the amount of $5,000. As disclosed in the court filings, Gillman Capone does not represent an adverse interest to the estate, and is a disinterested person under 11 U.S.C. Sec. 101(14). The firm can be reached through: Justin M. Gillman, Esq. GILLMAN CAPONE LLC 770 Amboy Avenue Edison, NJ 08837 Tel: (732) 661-1664 Fax: (732) 661-1707 Email: ecf@gillmancapone.com About Loukya Inc. Loukya, Inc., sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-20055) on October 10, 2024, listing under $1 million in both assets and liabilities. Judge Michael B. Kaplan oversees the case. Manu Rajvanshi, Esq., represents the Debtor as legal counsel. M/I HOMES: Moody's Upgrades CFR to Ba1 & Alters Outlook to Stable ----------------------------------------------------------------- Moody's Ratings upgraded the corporate family rating of M/I Homes, Inc. (M/I Homes) to Ba1 from Ba2, its probability of default rating to Ba1-PD from Ba2-PD and the senior unsecured notes ratings to Ba1 from Ba2. The company's Speculative Grade Liquidity rating is unchanged at SGL-1. The rating outlook was revised to stable from positive. "The upgrade recognizes M/I Homes' improved credit profile and commitment to a conservative financial policy, including low leverage and maintenance of robust liquidity," said Griselda Bisono, Moody's Ratings Vice President–Senior Credit Officer. The company has reduced leverage primarily through earnings growth over the past three years, with debt to book capitalization having declined to about 20% as of June 30, 2025 from 32% at the end of 2021. "Moody's expects M/I Homes to maintain debt-to-book capitalization ratio at below 30% through business cycles while continuing to grow and diversify its local market footprint, added Bisono". The stable outlook reflects Moody's expectations that M/I Homes will maintain a solid gross margin profile of above 20% despite near-term weakness in housing demand. The stable outlook also considers Moody's expectations that the company will prudently manage its balance sheet and maintain very strong liquidity. RATINGS RATIONALE M/I Homes' Ba1 CFR is supported by its solid scale, geographic diversification, strong local presence in key markets and balanced land strategy. The company's focus on first-time product offerings as well as pre-sold homes in construction help reduce market risk. The rating is constrained by reduced affordability, particularly for entry-level buyers, due to higher mortgage interest rates relative to two years ago, resulting in the need for builders to offer higher incentives to drive sales. Moody's therefore, expect M/I Homes' gross margins will trend down to about 22% by the end of 2025, from 24% for the 12 months ended June 30, 2025, as pricing power diminishes. Despite near term softness in the US housing market, MI Homes' current strong credit metrics position the company well to withstand some deterioration in profitability. The speculative grade liquidity rating of SGL-1 reflects Moody's expectations of very strong liquidity for M/I Homes' over the next 12-18 months. Moody's assessments of the company's liquidity incorporates an ample cash balance despite higher expected land spend in 2025 to support future growth. Other positive factors include a large and mostly untapped revolver, plenty of cushion on financial covenants and a sizable pool of unencumbered land. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A ratings upgrade would require consistent growth in scale while maintaining strong credit metrics, including debt to book capitalization below 35% and homebuilding EBIT to interest coverage in the high single digits. An upgrade would also require maintenance of conservative financial policies, including strong cash flow generation and liquidity. Finally, an upgrade would require a demonstrated commitment to attaining and maintaining an investment grade rating, both to Moody's Ratings and to the debt capital markets. The ratings could be downgraded if the company begins generating net losses, recognizes major impairment charges, experiences meaningful gross margin compression, or sees liquidity weaken. Specifically, the ratings could be downgraded if homebuilding debt to book capitalization approaches 45% or if homebuilding EBIT to interest coverage declines below 5.0x. Other factors that could lead to a downgrade include aggressive financial policies with respect to shareholder-friendly actions or land investments. The principal methodology used in these ratings was Homebuilding And Property Development published in October 2022. M/I Homes, Inc., formed in 1976 and headquartered in Columbus, Ohio, constructs and sells homes under the M/I Homes brand and has presence in 17 markets in 10 states. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. MANE SOURCE: Gets Extension to Access Cash Collateral ----------------------------------------------------- Mane Source Counseling, PLLC received another extension from the U.S. Bankruptcy Court for the Eastern District of North Carolina, Greenville Division to use cash collateral. The sixth interim order signed by Judge David Warren authorized the Debtor to use cash collateral to pay the expenses set forth in its 30-day budget. The Debtor may spend as much as 10% more if needed. The budget projects total operational expenses of $7,628.50 for August. As adequate protection, potential secured creditors will receive post-petition liens on the Debtor's cash and inventory to the extent that cash collateral is used and their pre-bankruptcy lien was valid, perfected, enforceable, and non-avoidable as of the petition date. The Debtor's authority to use cash collateral will terminate upon cessation of its operations or non-compliance with the interim order, whichever occurs first. The next hearing is scheduled for August 28. About Mane Source Counseling PLLC Mane Source Counseling, PLLC provides counseling and wellness services with the help of five horses used in therapy sessions. Mane Source Counseling sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-00833) on March 7, 2025, listing up to $500,000 in assets and up to $1 million in liabilities. Cheryl Meola, company owner, signed the petition. Judge David M. Warren oversees the case. The Debtor is represented by: Kathleen O'Malley, Esq. Stevens Martin Vaughn & Tadych, PLLC 2225 W. Millbrook Road Raleigh, NC 27612 Phone: 919-582-2300 Fax: (866) 593-7695 Email: komalley@smvt.com MARI ARI: Seeks to Hire Baker & Associates as Bankruptcy Counsel ---------------------------------------------------------------- Mari Ari International, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Baker & Associates as attorneys. The firm will render these services: (a) analyze the financial situation, and render advice and assistance to the Debtor; (b) advise the Debtor with respect to its duties; (c) prepare and file all appropriate legal papers; (d) represent the Debtor at the first meeting of creditors and such other services as may be required during the course of the bankruptcy proceedings; (e) represent the Debtor in all proceedings before the court and in any other judicial or administrative proceeding where its rights may be litigated or otherwise affected; (f) prepare and file a Disclosure Statement (if required) and Chapter 11 Plan of Reorganization; and (g) assist the Debtor in any matters relating to or arising out of the captioned case. The firm received a retainer in the amount of $16,738. Baker applied $1,738 of such amount for filing fees and other amounts for pre-petition fees and expenses. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Reese Baker, Esq., a partner at Baker & Associates, 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: Reese W. Baker, Esq. Baker & Associates 950 Echo Lane Ste. 300 Houston, TX 77024 Telephone: (713) 869-9200 Facsimile: (713) 869-9100 Email: courtdocs@bakerassociates.net About Mari Ari International Inc. Mari Ari International, Inc. doing business as Mari Ari Hair, sells human hair extensions, wigs, and related accessories. The Company operates a retail boutique in Houston, Texas, offering products and styling services to individual and professional clients. Its product line features both synthetic and human hair options with various styles, colors, and types. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-34029) on July 16, 2025. In the petition signed by Sean Lee, authorized representative of the Debtor, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Eduardo V. Rodriguez oversees the case. Reese Baker, Esq., at Baker & Associates, represents the Debtor as legal counsel. MARIN SOFTWARE: Hires Armanino Advisory LLC as Financial Advisor ---------------------------------------------------------------- Marin Software Incorporated seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Armanino Advisory LLC as its financial advisor. The firm's services include: a. Financial Advisory: advising the Debtor with management support and reporting. Such work includes but is not limited to: -- Management Support: provide financial counsel to CEO and CFO, as requested regarding strategic options, approaches to extend cash runway, or reduction of cash burn, and related communications/messaging; -- Plan Development and Support: support the development of plan and related financial projections and provide guidance and, if requested, support such plan with third parties; and -- Filings and Schedules: if requested, act as support Debtor and Debtor's counsel in the preparation of motions, orders, schedules, Statements of Affairs and Monthly Operating Reports. b. Debt/Creditor Negotiation: if requested, advising the Debtor on and leading negotiations and communicating directly with creditors to support a go-forward plan to maximize value, developing materials to support these discussions and authorizing us to speak directly to such creditors. c. Managing the orderly wind down and dissolution of the Debtor's subsidiaries. d. Supporting the transition of the Debtor's accounting records from NetSuite to QuickBooks. Armanino's hourly rates are: Partner $495 - $695 Senior or Managing Director $440 - $595 Director $390 - $495 Manager $250 - $395 Consultants and Staff $195 - $275 Armanino received payments from the Debtor in the amount of $110,962 of which $93,959 remains as of the Petition Date to be credited to the Debtor and applied to post petition fees and expenses. H. Michael Hogan III, a partner at Armanino Advisory LLC, assured the court that his firm is a "disinterested person" as the term is defined in 11 U.S.C. Section 101(14). The firm can be reached through: H. Michael Hogan III Armanino Advisory LLC 50 W San Fernando St #500 San Jose, CA 95113 Tel: (408) 240-4908 About Marin Software Incorporated Marin Software Incorporated provides a software-as-a-service platform for managing digital advertising across search, social, and eCommerce channels. Its platform offers analytics, workflow, and optimization tools designed to help performance marketers and agencies improve returns on advertising spend. Marin Software Incorporated sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11263) on July 1, 2025. In its petition, the Debtor reports total assets of $5,656,853 and total debts of $2,767,237. The Debtor's bankruptcy counsel is James E. O'Neill, Esq. at PACHULSKI STANG ZIEHL & JONES LLP. The Debtor's Corporate Counsel is FENWICK & WEST LLP. ARMANINO ADVISORY LLC is the Debtor's Financial Advisor and DONLIN, RECANO & COMPANY, LLC is the Debtor's Claims, Noticing & Solicitation Agent and Administrative Advisor. MATHESON FLIGHT: Punitive Damages Claims Mandatorily Subordinated ----------------------------------------------------------------- Judge Christopher M. Klein of the United States Bankruptcy Court for the Eastern District of California ruled that punitive damages claims against Matheson Flight Extenders, Inc. and Matheson Trucking, Inc. are mandatorily subordinated to other unsecured claims pursuant to Sec. 726(a)(4). The Plan Administrator under the liquidating Chapter 11 plan for the consolidated cases of Matheson Flight Extenders, Inc., Matheson Postal Services, Inc., and Matheson Trucking, Inc., seeks an order determining that seven claims are mandatorily subordinated to other unsecured claims as having originated in a punitive damages award. The bankruptcy waterfall pertains to chapter 11 cases primarily by way of the "best interest" test for plan confirmation. The net effect of Sec. 726(a)(4) is that punitive damages claims that are not compensation for actual pecuniary loss are mandatorily subordinated and cannot be paid as Sec. 726(a)(2) unsecured claims. 2015 Chapter 11 Case Chapter 22 rears its head because MFE used a Chapter 11 case in 2015 to settle a $14 million punitive damages award before post-trial motions were decided. The award imperiled lifeblood contracts with the U.S. Postal Service, threatening collapse of the business. The judgment was entered Feb. 27, 2015, in U.S. District Court, District of Colorado, in Camara, et al. v. Matheson Flight Extenders, Inc. & Matheson Trucking, Inc., No. 12-CV-03040-CMACBS, on a jury verdict for unlawful discrimination practices. The $14,968,100 Final Judgment in favor of the seven plaintiffs was for back pay and compensatory damages (total $968,000) and punitive damages ($14,000,000). MFE filed an immediate Chapter 11 case in the District of Nevada to forestall post-trial motions and appeals in Colorado while negotiating a settlement. In re Matheson Flight Extenders, Inc., No. 15-50541-btb (Bankr. D. Nevada 2015). The ensuing $8,000,000 settlement was baked into a Chapter 11 plan in a deal providing for withdrawal of post-trial motions, no appeal, and dismissal of the civil action with prejudice. The dollar terms of the settlement were: (1) payment of $328,571 to each of the seven plaintiffs (total $3,000,000) before the effective date of plan; (2) payment by MFE of $714,286 to each plaintiff (total $5,000,000) in 32 equal quarterly installments commencing April 1, 2016; and (3) stipulated judgment against MTI for $2,700,000 for any payment default. The choice of law in the settlement agreement and in Article 7.4 of the Second Amended Plan is Nevada law. The Second Amended Plan implementing the settlement was confirmed Dec. 28, 2015, and went effective Jan. 19, 2016. 2022 Chapter 11 Cases MFE and MPS filed Chapter 11 cases May 5, 2022. MTI added its case on July 14, 2022. The cases were administratively consolidated and eventually substantively consolidated. Plan Administrator's Arguments The Plan Administrator objects that the bankruptcy waterfall requires that the claims based on the 2015 judgment against MFE and MTI, together with the $2,700,000 payment default provision, be treated under Sec. 726(a)(4) as being on account of punitive damages that were not compensation for actual pecuniary loss by the holders of the claims. In addition, the objection questions allowability on the merits of the $2,700,000 payment default provision as being an unenforceable penalty under governing Nevada law. Claimants' Arguments Claimants argue that the 2015 plan implementing the settlement of the 2015 judgment transformed the debt from status as punitive damages to status as garden-variety contract debt. The theory is, first, that the settlement was a contract that extinguished the judgment by way of dismissing the Complaint and, second, that the $2,700,000 payment default provision was part of the bargained-for consideration in 2015. Claimants further urge that the order confirming the plan in the 2015 Chapter 11 case is binding as to the status of the debt. The Court finds the claimants' argument that the confirmation of the 2015 plan transformed the punitive damages into a garden-variety contract runs counter to Supreme Court precedent. The Supreme Court decisions in Archer v. Warner, 538 U.S. 314, 318-22 (2003), and in Brown v. Felsen, 442 U.S. 127, 131-38 (1979), settle the proposition that neither a consent decree, nor the settlement of a fraud debt by way of contract, prevents a Bankruptcy Court from looking behind a decree or settlement contract to ascertain proper treatment of a debt in bankruptcy. Those precedents permit this Court to look behind the 2015 plan confirmation order and the attendant settlement agreement to determine the position of the debt in the Sec. 726(a) waterfall. The origin of the debt thereby compromised was the 2015 judgment for punitive damages. Judge Klein explains, "The 2015 chapter 11 plan could not have been confirmed without a 'best interest' finding under Sec. 1129(a)(7)(A)(ii) applying the bankruptcy waterfall. In other words, the 2015 bankruptcy court ruled there would be no distribution to general unsecured creditors under Sec. 726(a)(2) or to any creditor downstream from that tier. It follows that the 'best interest' test for the 2015 plan confirmation required mandatory subordination of the punitive damages claims pursuant to Sec. 726(a)(4). The status of the debt as punitive damages was not relevant to any question being decided in the course of confirming the 2015 chapter 11 plan." The Court finds the claimants' issue preclusion argument that plan confirmation in the prior chapter 11 case established a new status under the bankruptcy waterfall in the later chapter 11 case fails because the claim status of punitive damages in the bankruptcy waterfall was not actually and necessarily litigated. Stipulated Judgment for Payment Default Under the terms of the settlement contract, the $2,700,000 would be payable even if the only payment default was not making the 32nd of the 32 required payments. In other words, it is a fixed charge of $2,700,000 regardless of the actual amount of the payment default. That is "grossly disproportionate" to actual damages and hence, a "penalty" under Nevada law, the Court finds. The fact that a penalty unenforceable under the chosen state law was embodied in the 2015 confirmed chapter 11 plan and settlement agreement does not now insulate it from attack. This Court has the power to determine in a claim objection the enforceability of the penalty under applicable nonbankruptcy law. Accordingly, the Court holds the objection to $2,700,000 of the $3,793,751 claim will be sustained and that portion of the claim disallowed as unenforceable under governing state law. A copy of the Court's Opinion dated July 28, 2025, is available at https://urlcurt.com/u?l=cmHHQl from PacerMonitor.com. About Matheson Matheson Flight Extenders, Inc. and Matheson Postal Services, Inc. provide short and long-haul transportation, logistics and ground handling services. The companies are based in Sacramento, Calif. Matheson Flight Extenders and Matheson Postal Services sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Calif. Case Nos. 22-21148 and 22-21149) on May 5, 2022. On July 14, 2022, Matheson Trucking, Inc., an affiliate, filed for Chapter 11 protection (Bankr. E.D. Calif. Case No. 22-21758). The cases are jointly administered under Case No. 21148. In the petitions signed by Charles J. Mellor, chief restructuring officer, the Debtors disclosed up to $50 million in both assets and liabilities. Judge Christopher M. Klein oversees the cases. Nuti Hart, LLP and Development Specialists, Inc. serve as the Debtors' bankruptcy counsel and financial advisor, respectively. Donlin, Recano & Company, Inc. is the Debtors' claims, noticing and solicitation agent, and administrative advisor. The U.S. Trustee for Region 17 appointed an official committee of unsecured creditors in the Debtors' cases. The committee is represented by Felderstein Fitzgerald Willoughby Pascuzzi & Rios, LLP. MERIT STREET: Seeks to Hire Portage Point as Investment Banker -------------------------------------------------------------- Merit Street Media, Inc seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Triple P TRS, LLC as its restructuring advisor and Triple P Securities, LLC (together, Portage Point) as its investment banker. The firm's services include: Investment Banking Services: a. advising and assisting the Debtor in evaluating any potential Financing by the Debtor, and, on behalf of the Debtor, contacting potential sources of capital as the Debtor may designate and assisting the Debtor in implementing such Financing; b. assisting the Debtor in identifying and evaluating candidates for any potential Sale Transaction, advising the Debtor in connection with negotiations and aiding in the consummation of any Sale Transaction; c. advising the Debtor on the timing, nature, and terms of new securities, other consideration or other inducements to be offered pursuant to any Restructuring, Sale Transaction and/or Financing; Restructuring Advisory Services: d. assisting in the evaluation and/or development of a short-term cash flow model and/or related liquidity management tools for the Debtor for such purpose(s) as the Debtor may require; e. assisting in the evaluation and/or development of a business plan and/or such other related forecasts and analyses for the Debtor for such purpose(s) as the Debtor may require; f. assisting in the evaluation and implementation of contingency planning related to Debtor's commencing this chapter 11 case; g. assisting in obtaining and presenting information required by parties in interest in this chapter 11 case, including any statutory committees appointed in this chapter 11 case or by the Court; General Services: h. advising the Debtor on tactics and strategies for negotiating with the Constituents; i. rendering financial advice to the Debtor and participating in meetings or negotiations with the Constituents and/or rating agencies or other appropriate parties in connection with any Restructuring, Sale Transaction and/or Financing; j. assisting the Debtor in preparing documentation within Portage Point's area of expertise that is required in connection with any Restructuring, Sale Transaction and/or Financing; k. attending meetings of the board of directors (or similar governing body) of the Debtor with respect to matters on which Portage Point has been engaged to advise; l. providing testimony, as necessary, with respect to matters on which Portage Point has been engaged to advise in this chapter 11 case; and m. providing the Debtor with other financial restructuring advice as may be specifically agreed upon in writing by the Debtor and Portage Point. Portage Point will be paid at these rates: Restructuring Advisory Services: CEO $1,150 Service Line Leader $950 to $995 Managing Director $895 to $950 Director $695 to $800 Vice President $550 to $675 Associate $395 to $450 Investment Banking Services: a. Monthly Fee. A Monthly Fee of $150,000, payable on July 3, 2025 and on the first day of each month thereafter until the earlier of the completion of the Restructuring or the termination of Portage Point's Engagement pursuant to Section 21 of the Engagement Letter. Fifty (50 percent) of all Monthly Fees paid in respect of any months following the fourth month of the Engagement shall be credited (without duplication) against any Restructuring Fee or Sale Transaction Fee payable; provided, however, such credit shall only apply to the extent that such fees are approved in their entirety by this Court; b. Restructuring Fee. A Restructuring Fee equal to $500,000, payable upon the consummation of a Restructuring. c. Sale Transaction Fee. If, whether in connection with the consummation of a Restructuring or other-wise, the Debtor consummates a Sale Transaction incorporating either (i) all or a majority of the Debtor's assets, (ii) all or a majority of or a controlling interest in the Debtor's equity securities, or (iii) certain of the Debtor's litigation claims, Portage Point shall be paid a Sale Transaction Fee equal to $1,000,000. Any Sale Transaction Fee shall be payable upon consummation of the applicable Sale Transaction. d. Financing Fee. A Financing Fee, payable upon the consummation of a Financing, equal to the applicable percentages of gross proceeds as follows based on the security type issued in the Financing: (i) 2.0 percent of any senior secured debt financing or government financing, plus (ii) 4.0 percent of any junior secured or unsecured debt financing, plus (iii) 5.0 percent of any equity, equity-linked or equity-stapled or similarly bundled equity financing. In addition, the firm will seek reimbursement for expenses incurred. Steven W. Bremer, managing director at Portage Point Partners, disclosed in a court filing that the firm is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. The firm can be reached at: Steven W. Bremer Portage Point Partners, LLC 640 Fifth Ave, 10th Floor New York, NY 10019 Tel: (202) 641-4298 Email: sbremer@pppllc.com About Merit Street Media Merit Street Media is a television and media content production and distribution company based in Fort Worth, Texas. It appears to focus on creating, producing, and distributing television content, maintaining business relationships with major cable providers including DIRECTV and DISH Network, as well as numerous television stations and production companies. Merit Street Media sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-80156) on July 2, 2025, before the Hon. Scott W. Everett. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million. The Debtor is represented by Sidley Austin LLP as bankruptcy counsel. Epiq Corporate Restructuring, LLC serves as Claims, Noticing, and Solicitation Agent, effective as of the Petition Date. MILLROSE PROPERTIES: S&P Rates New $1BB Unsecured Notes 'BB' ------------------------------------------------------------ S&P Global Ratings assigned its 'BB' long-term issuer credit rating to Millrose Properties Inc. (Millrose). The outlook is stable. S&P also assigned its 'BB' issue-level rating to the company's proposed $1 billion senior unsecured notes due 2030. The 'BB' issuer credit rating on Millrose reflects its low leverage and preferential terms with Lennar, which make Lennar less likely to terminate option contracts with Millrose. Partly offsetting these factors are its significant homebuilder concentration with Lennar and challenges with growing the portfolio without raising leverage due to REIT distribution requirements. Millrose and its external manager, Kennedy Lewis, both lack an operating track record of land banking through a credit cycle. Kennedy Lewis began land banking in 2021, and land prices have remained relatively strong over the past four years. However, favorable secular trends of low supply of new homes in the U.S. will likely continue to support home prices and land values. Millrose is a REIT that purchases and develops residential land and sells finished homesites to homebuilders by way of option contracts with predetermined costs and takedown schedules. The company was spun off from Lennar Corp. in February 2025 with land assets contributed by Lennar. Millrose is externally managed by a subsidiary of Kennedy Lewis, an institutional alternative investment firm with over $25 billion in assets under management. In S&P's assessment of Millrose's business position, S&P looks unfavorably at the following factors. -- Millrose's lack of business line diversification outside of land banking. -- The company's single homebuilder concentration, with Lennar expected to account for over 50% of Millrose's land assets. -- The lack of an operating track record of land banking through a credit cycle. -- Modest geographical concentration, with the top three states (California, Texas, and Florida) making up about 48% of total takedown prices as of June 30, 2025. S&P balances those weaknesses against the following factors. -- Lennar is the one of the highest rated homebuilders (BBB/Stable/--). As of June 30, 2025, Millrose had $7.8 billion of land on the balance sheet, with over 80% of the portfolio exposed to Lennar. -- The preferential terms that Lennar receives from Millrose make it a low probability event for Lennar to terminate option contracts with Millrose, in our view. -- Millrose continues to diversify its homebuilder exposure, and non-Lennar homebuilders will have higher option fees, initial deposits, and termination fees. -- Favorable secular trends of low supply of new homes in the U.S. will likely continue to support home price and land values. S&P said, "We view land banking as a very fragmented market, with Kennedy Lewis taking up a small fraction of it. We expect Millrose to face some competition from other land banks and regional banks. While Millrose has a monoline business model, the company generates consistent and steady income from contractual monthly option fee payments, so long as homebuilders do not terminate option contracts. The takedown schedules also provide a somewhat reliable view on future incoming cash flows. "Millrose's top homebuilder counterparty, Lennar, receives preferential terms. These include lower initial deposits, termination fees, and option rates. We think Lennar has an economic incentive to keep these preferential rates in place, implying Lennar is unlikely to terminate option contracts with Millrose. "In July 2025, Taylor Morrison and Kennedy Lewis Investment Management announced a $3 billion land banking agreement over the next 2.5 years. We expect Kennedy Lewis will allocate a significant portion of the $3 billion to Millrose's portfolio. Additionally, in May 2025, New Home Co. announced it will acquire Landsea Homes. Under this transaction, Millrose provided approximately $500 million of land banking capital to New Home Co. Both transactions are examples of Millrose's initiatives to diversify to non-Lennar homebuilders." Millrose has two classes of common shares. Stuart Miller, the co-CEO of Lennar, owns about 40% of the voting shares. Positively, the company's board of directors is composed of five members that are independent from Millrose, Kennedy Lewis, and Lennar. S&P expects the company's leverage, as measured by debt to adjusted total equity (ATE), will remain well under 1x. As of June 30, 2025, leverage was about 0.2x. Millrose has a target debt to capital of 0.33x, which corresponds to a debt to equity of 0.5x. The company will also need to receive approval from Lennar if it plans to increase debt to equity above 1x. Millrose's profitability should improve as the company grows its non-Lennar assets. Revenue primarily consists of option fees, which are predictable and recurring. Millrose does not rely on gains on sales of land, unless homebuilders terminate option contracts, forcing Millrose to sell the land to another homebuilder and face pricing pressure. During second-quarter 2025, Millrose received net takedown proceeds of $797 million. The company recycled these proceeds along with $675 million in acquisition financing, by deploying $718 million in Lennar assets (yield of 8.6%) and $813 million in other (non-Lennar) assets (yield of 11.2%). Millrose must comply with REIT distribution requirements that limit its ability to retain earnings and replenish or increase capital. The company's access to equity markets could be limited if its price-to-book multiple remains below 1x. As a land bank, Millrose could experience losses if its counterparty homebuilders terminate option contracts and land prices weaken simultaneously. Given Lennar's investment-grade credit quality and the preferential terms that Lennar receives from Millrose, we don't anticipate Lennar will terminate option contracts with Millrose. Protections against homebuilders terminating option contracts include cross-termination pools, forfeiture of initial deposits, and termination fees. Homebuilders are also required under contract to finish the horizontal development of the homesites and are responsible for any development costs over the contractual limit. Millrose plans to land bank for more non-Lennar homebuilders, as evidenced by its recently announced transactions with Taylor Morrison and New Home Co. These homebuilders could have weaker profitability and liquidity than Lennar. Some of these relationships may also not have enough scale for Millrose to enact cross-termination pools. In a stress scenario where home prices decline, S&P thinks the lower-rated homebuilders are more likely to terminate their option contracts with Millrose. Partially offsetting this risk are the higher option fees and termination fees that the non-Lennar homebuilders are subject to. No homebuilder has terminated option contracts with Kennedy Lewis since it started in land banking in 2021, and we expect favorable secular trends will likely continue to support the land banking and homebuilder industries. Nevertheless, S&P views the short operating track record as a weakness to the ratings. Millrose's land assets are not appraised regularly, and the company has minimal exposure to the market risk of land unless homebuilders terminate option contracts. Impairments on the portfolio will typically only occur upon option contract termination. While Millrose's funding mix only has one issuance of unsecured notes, S&P believes that the company will maintain steady access to unsecured debt markets. As of June 30, 2025, Millrose had about $1.1 billion of debt outstanding, consisting of $1 billion in secured delayed-draw term loans, $25 million drawn on its $1.3 billion secured revolving credit facility (RCF), and $100 million in development guarantee holdback liabilities (which are unsecured and the company expects to repay in February 2027). Pro forma for the proposed $1 billion unsecured debt issuance in August 2025 and assuming that the net proceeds will be used to pay down existing secured debt, about 69% of the company's total debt will be unsecured. This also accounts for another $425 million drawn on the RCF ($450 million outstanding) since June 30. S&P said, "We believe Millrose's funding is relatively well matched to its assets, with the company having a stable funding ratio of roughly 95% as of June 30, 2025. The RCF has covenants including a maximum debt to capital of 0.5x and minimum tangible net worth. We think the company will maintain sufficient cushion to these covenants." As of June 30, 2025, Millrose had $66.6 million of unrestricted cash on the balance sheet and almost full availability under its $1.3 billion secured RCF ($25 million drawn), versus $6.3 billion of future land development commitments. Most of the commitments will be funded over about three years with takedown proceeds, which are determined by the takedown schedule and relatively predictable. If takedown proceeds decline due to a slowdown of homesite deliveries, we anticipate the funding of future development will slow as well. The company can also choose to not fund these commitments after performing due diligence. S&P said, "We expect the company will maintain sufficient capacity on the secured RCF to meet any liquidity needs. In a stress scenario where homebuilders terminate option contracts, sources of immediate liquidity include availability under the RCF and termination fees from the homebuilders. "We rate Millrose's senior unsecured notes in line with the issuer credit rating on the company. This reflects our expectation that priority debt will remain less than 15% of adjusted assets and unencumbered assets will be sufficient to cover unsecured debt. "The stable outlook reflects our expectation that, over the next 12 months, Millrose will keep growing its portfolio as it continues to diversify to non-Lennar homebuilders while maintaining sufficient cushions to covenants, debt to ATE below 1x, adequate liquidity, and ready access to unsecured debt markets. "We could lower the ratings in the next 12 months if Millrose experiences a material amount of option contract terminations, especially if land prices weaken simultaneously. We could also lower the ratings if cushions to covenants erode, debt to ATE is sustained above 1.0x, the liquidity position deteriorates, or if we think the company may not be able to access unsecured debt markets. "We could raise the ratings in the next 12 months if Millrose continues to diversify from Lennar by building relationships with other strong homebuilders and demonstrates a track record of improving profitability. An upgrade would also be contingent on the company maintaining minimal losses and option contract terminations, sufficient cushions to covenants, debt to ATE below 1x, adequate liquidity, and ready access to unsecured debt markets." MIP V WASTE: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable ------------------------------------------------------------------ S&P Global Ratings affirmed all ratings, including its 'B+' issuer credit rating on waste services provider MIP V Waste LLC (doing business as GreenWaste). S&P said, "We assigned our 'B+' issue-level rating and '3' recovery rating (rounded estimate: 65%) to the proposed secured term loan B due 2032. We will withdraw our ratings on the existing secured loans when the transaction closes. "The stable outlook reflects our expectation that effective pricing and cost management, along with ongoing additional volumes, will allow GreenWaste to maintain leverage between 4.0x-5.0x." The affirmation reflects GreenWaste's S&P Global Ratings-adjusted EBITDA growth of almost 7% during the first half of 2025 and manageable debt balances. Year to date, GreenWaste's performance has been solid, supported by a meaningful increase in inbound volumes in the construction & demolition (C&D) line of business. S&P expects C&D volumes will improve because management believes California municipalities will be more aggressive in enforcing laws related to landfill diversion. The company booked new wins on request for proposal (RFP) processes with the City of Santa Cruz and the California Department of Transportation (CalTrans). It also saw higher tons at its Hayward Transfer Station, which is now at maximum permitted capacity. Rate increases in its collection line are keeping ahead of labor inflation, and higher California Redemption Value (CRV) rates to incentivize recycling have also helped boost GreenWaste's profitability in their processing segment. Lower commercial tons in the organics segment was a slight mitigant to performance, though S&P notes the company has process improvements underway at its anaerobic digestion and composting facilities. Credit measures are appropriate for the ratings. As of June 30, 2025, GreenWaste's S&P Global Ratings-adjusted debt to EBITDA ratio was 4.5x, down from 4.9x at the same point last year. S&P said, "On an S&P Global Ratings weighted-average basis, we expect S&P Global Ratings-adjusted debt to EBITDA to remain 4x-5x. The credit facility refinancing contemplates a $50 million increase in the size of the revolver to $150 million and a $29 million increase in the term loan B to $415 million from the amortized $386 million amount as of June 30, 2025. We expect the company will use a portion of the proceeds to reduce revolver borrowings by $15 million and add $6.5 million of cash to the balance sheet for general corporate purposes. The added size to the proposed unrated revolver reflects GreenWaste's potential increase in letters of credit (LCs). These will be more attractively priced relative to its existing performance bonds, and the company also needs LC capacity to meet Cal Recycle requirements and for new RFP wins it anticipates in 2027-2029. We see pro forma leverage remaining relatively constant, and we expect it will remain within the range commensurate for the ratings." GreenWaste operates in the highly regulated California market, focused on landfill diversion. The company has a highly predictable revenue stream, with more than 60% of its sales locked into long-term contracts, primarily with California municipalities. The company's ability to divert more than 70% of waste away from landfills remains a strength. Through its contracts, GreenWaste can provide landfill diversion services to more than 320,000 residential customers and more than 6,000 commercial customers. The company's focus on waste diversion benefits from regulatory and environmental tailwinds to support future stability and growth. It has strategically located processing and materials recovery facilities to support California's increasingly stringent diversion requirements. Its San Jose material recovery facility (MRF) is recognized in California for its diversion rates on the West Coast and is California's first, and only, high diversion organic waste processing facility. GreenWaste, which is focused on diversion of waste services, still has relatively limited scale, scope, and diversity compared to larger industry peers. S&P expects revenue of over $450 million in 2025, which, while small, outpaces its $400 million-$425 million assumption last year. Such top-line sales are lower than other more-diversified, regional, municipal solid waste haulers such as WIN Waste Innovations Holdings Inc.--which is managed by Macquarie Asset Management (MAM), like GreenWaste--and Casella Waste Systems Inc. S&P said, "The stable outlook on GreenWaste reflects our expectation that revenue growth in collections and processing, as well as new contracts, will keep leverage below 5x in the next 12 months. We also expect the company to win a greater share of C&D volumes over the next 6-12 months. Unlike typical financial sponsors, we expect MAM-managed funds to retain a longer holding period and will focus on maintaining relatively conservative leverage below 5x in the long run." S&P could lower its ratings over the next 12 months if S&P expects the S&P Global Ratings-adjusted debt to EBITDA will increase above 5x for multiple quarters with no clear prospects for recovery. This could occur if: -- The company's operating performance deteriorates; -- EBITDA margins weaken 300 basis points (bps), possibly because of increasingly competitive market conditions, failure to renew service contracts at satisfactory terms, volatile input costs, or ongoing weakness in its C&D markets; or -- The company undertakes large debt-funded shareholder rewards or acquisitions. Although unlikely, S&P would raise its rating over the next 12 months if the company reduces leverage below 4x on a sustained basis. This could occur by: -- Improving EBITDA margins 300 bps due to new contract and request for proposal (RFP) wins, as well as reduced input costs and improved efficiencies; and -- Implementing financial policies that maintain lower leverage and other credit measures while increasing EBITDA and scale. MOLINA VENTURES: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Molina Ventures LLC d/b/a American Air Conditioning & Heating Co. Attn: Jeffrey G. Molina 12820 S Zarzamora St San Antonio, TX 78224-3096 Business Description: Molina Ventures LLC, doing business as American Air Conditioning & Heating Co., provides heating, ventilation, and air conditioning services to residential and commercial clients in the San Antonio, Texas area. Chapter 11 Petition Date: August 4, 2025 Court: United States Bankruptcy Court Western District of Texas Case No.: 25-51802 Judge: Hon. Craig A. Gargotta Debtor's Counsel: Paul Steven Hacker, Esq. HACKER LAW FIRM, PLLC 3355 Cherry Ridge Ste. 214 San Antonio TX 78230 Tel: (210) 595-2045 Email: steve@hackerlawfirm.com Total Assets: $726,079 Total Liabilities: $2,096,654 The petition was signed by Jeffrey G. Molina as owner. 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/H2C6MVA/Molina_Ventures_LLC_dba_American__txwbke-25-51802__0001.0.pdf?mcid=tGE4TAMA NAOUI LLC: Seeks to Extend Plan Exclusivity to Nov. 28, 2025 ------------------------------------------------------------ Naoui, LLC asked the U.S. Bankruptcy Court for the District of Maryland to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to November 28, 2025 and January 28, 2026, respectively. The Debtor submits that cause exists for this Court to extend its exclusive periods based on, among other things, the following: * Complexity of financial records. The Debtor has operated its business in an informal manner prior to the bankruptcy filing. The process of gathering, organizing, and analyzing the necessary financial documents and business records required for plan formulation has proven more time-consuming and complex than initially believed by the Debtor. * Difficulty securing professional assistance. The Debtor has encountered significant challenges locating and retaining qualified accounting professionals to provide aid under the Debtor's circumstances. This search process has caused substantial delays in the preparation of necessary financial statements and projections. * Good faith efforts. Despite the challenges, the Debtor has been diligently working to compile the necessary information and has been making good faith effort to prepare a viable plan of reorganization that will maximize value for all stakeholders. The Debtors intends to use the extended exclusive periods to, among other things, analyze claims, appraise the value of the Debtor's real property, and determine the best exit strategy for this case, which will most assuredly include a plan to sell some of the Debtor's real property. * No prejudice to parties in interest. The requested extensions will not prejudice creditors or other parties in interest. The Debtor is presently evaluating with one of its largest creditors, Selene Finance, LP, resolution of a pending motion relating cash collateral and adequate protection payments, which motion is set to be heard before this Court on August 28. Naoui, LLC is represented by: Duane R. Demers, Esq. Law Offices of Ali K, LLC 6328 Baltimore National Pike, Suite 200 Catonsville, MD 21228 Telephone: (443) 274-1002 Facsimile; (443) 274-1002 Email: demers@7474law.com About Naoui LLC Naoui, LLC is engaged in the leasing and management of residential, commercial, and industrial real estate properties. Naoui sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-12871) on April 2, 2025. In its petition, the Debtor reported between $1 million and $10 million in both assets and liabilities. Judge Nancy V. Alquist oversees the case. The Debtor is represented by Duane R. Demers, Esq., at the Law Offices of Ali K, LLC. Wilmington Savings Fund Society, FSB, as trustee for Ibis Holdings A Trust, is represented by: Thomas Gartner, Esq. De Cubas & Lewis, PA P.O. Box 5026 Fort Lauderdale, FL 33310 (954) 453-0365 Email: thomas.gartner@decubaslewis.com NHC INVESTMENTS: Seeks to Hire The Keating Firm as Legal Counsel ---------------------------------------------------------------- NHC Investments LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Louisiana to hire The Keating Firm, as attorney. The firm will give the Debtor's legal advice with respect to Debtor's powers and duties as Debtor-In-Possession in the continued operation of the Debtor's business and management of the Debtor's property and to perform all legal services for the Debtor-in-Possession which may be necessary. The firm will be paid at the rates of $275 per hour for attorneys, and $75 per hour for paralegals. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. David Patrick Keating, Esq., a partner at The Heating Firm, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: David Patrick Keating, Esq. The Heating Firm P.O. BOX 3426 Lafayette, LA 70502 Tel: (337) 594-8200 Email: rick@dmsfirm.com About NHC Investments LLC NHC Investments LLC is a Louisiana-based real estate holding company with properties in St. Landry Parish. NHC Investments LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. La. Case No. 25-50600) on July 8, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge John W. Kolwe handles the case. The Debtors are represented by David Patrick Keating, Esq. NINJA MOUNTAIN: Seeks to Hire Keith Y. Boyd P.C. as Legal Counsel ----------------------------------------------------------------- Ninja Mountain Bike Performance LLC seeks approval from the U.S. Bankruptcy Court for the District of Oregon to hire Keith Y. Boyd, P.C. to handle its Chapter 11 case. The firm will be paid at these rates: Keith Y. Boyd $445 per hour Melissa A. Arnold, ACP $185 per hour Law Clerk $200 per hour Legal Assistants $115 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Prior to filing, the firm received from the Debtor retainer payment of $22,500, plus $2,500 for costs. Keith Y. Boyd, Esq., a partner at The Law Offices of Keith Y. Boyd, 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 Y. Boyd, Esq. The Law Offices of Keith Y. Boyd 724 S. Central Ave., Suite 106 Medford, OR 97501 Tel: (541) 973-2422 Fax: (541) 973-2426 Email: keith@boydlegal.net About Ninja Mountain Bike Performance LLC Ninja Mountain Bike Performance LLC provides mountain bike skills clinics and camps across the United States. The Company offers training programs for riders of all levels, taught by certified instructors, and sells related products including portable jump ramps, protective gear, and apparel. It supports riders in building confidence and improving skills through progressive instruction and nationwide events. Ninja Mountain Bike Performance LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ore. Case No. 25-61937) on July 10, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Thomas M. Renn handles the case. The Debtors are represented by Keith Y Boyd, Esq. at KEITH Y. BODY, PC. OCEAN POWER: Reports $21.5 Million Net Loss in FY25 --------------------------------------------------- Ocean Power Technologies Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting net losses of $21.5 million and $27.5 million in fiscal 2025 and 2024, respectively. As of April 30, 2025, the Company had an accumulated deficit of $329.1 million. Revenue for the year ended April 30, 2025 was $5.9 million, as compared with revenue for the year ended April 30, 2024 of $5.5 million. As of April 30, 2025, the Company had total assets of $30.8 million, $4.1 million in total liabilities, and $26.7 million in total shareholders' equity. Iselin, New Jersey-based EisnerAmper LLP, the Company's auditor since 2020, previously issued a "going concern" qualification in its report dated July 25, 2024, attached to the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2024, citing that the Company has recurring net losses and net cash flow used in operations that raise substantial doubt about its ability to continue as going concern. Liquidity Outlook: Ocean Power stated in the report: "Since our inception, our operating cash flows have not been sufficient to fund our operations and provide the capital resources for our business. For the two-year period ended April 30, 2025 our aggregate revenue was $11.4 million, our aggregate net losses were $49.6 million and our aggregate net cash used in operating activities was $48.4 million." The Company expects to devote substantial resources to continue its enhancement efforts for its products and to expand its sales, marketing and manufacturing programs associated with the continued commercialization of its products. Its future capital requirements will depend on several factors, including but not limited to: * the Company's ability to improve, market and commercialize its products, and achieve and sustain profitability; * the Company's continued improvement of its proprietary technologies, and expected continued use of cash from operating activities unless or until it achieves positive cash flow from the commercialization of its products and services; * changes in current legislation, regulations and economic conditions regarding Federal governmental tariffs, the implementation on the new US Department of Governmental Efficiency ("DOGE") and related DOGE federal governmental budget cuts and the potential that this affects the demand for, or restrict the use of, the Company's products and services; * the Company's ability to obtain additional funding, as and if needed, which will be subject to several factors, including market conditions, its financial condition and its operating performance; * the Company's ability to comply with the covenants and other obligations under its convertible notes; * the ability to continue as a going concern; * the Company's history of operating losses, which it expects to continue for at least the short-term and possibly longer; * the Company's ability to manage challenges and expenses associated with communications and disputes with activist shareholders, including litigation; * the Company's ability to manage and mitigate risks associated with its internal cyber security protocols and protection of the data it collects and distributes; * the Company's ability to protect its intellectual property portfolio; * the impact of potential inflation related to the U.S. dollar on the Company's business, operations, customers, suppliers, manufacturers, and personnel; * the Company's ability to meet product enhancement, manufacturing and customer delivery deadlines and the potential impact due to disruptions to its supply chain or its ability to identify vendors that can assist with the prefabrication elements of its products, as a result of, among other things, staff shortages, order delays, and increased pricing from vendors and manufacturers; * the Company's forecasts and estimates regarding future expenses, revenue, gross margin, cash flow and capital requirements; * the Company's ability to identify and penetrate markets for its products, services, and solutions; * the Company's ability to effectively respond to competition in its targeted markets; * the Company's ability to establish relationships with its existing and future strategic partners which may not be successful; * the Company's ability to maintain the listing of its common stock on the NYSE American; * the reliability and continuous improvement of the Company's technology, products and solutions; * the Company's ability to increase or more efficiently utilize the synergies available from its product lines: * the Company's ability to expand markets across geographic boundaries; * the Company's ability to be successful with Federal government work which is complex due to various statutes and regulations applicable to doing business with the Federal government; * the Company's ability to be successful doing business internationally which requires strict compliance with applicable statutes and regulations; * the current geopolitical world uncertainty, including tariffs, Russia's invasion of Ukraine, the Israel/Palestine conflict and previous attacks on merchant ships in the Red Sea; * the potential impact that new foreign country tariffs may have on the Company's ability (i) to source and procure necessary raw materials for the manufacture and provision of its products and services; and (ii) to deliver its products to such foreign countries; * the Company's ability to hire and retain key personnel, including senior management, to achieve its business objectives; and * the Company's ability to establish and maintain consistent commercial profit margins. "Our business is capital intensive, and through April 30, 2025, we have been funding our business principally through sales of our securities. As of April 30, 2025, our cash and cash equivalents and long-term restricted cash balance was $6.9 million and we expect to fund our business with this amount, future financings such as the May 2025 convertible debt issuance and, to a lesser extent, with our cash flow generated from operations," the Company concluded. Management believes the Company's current cash and cash equivalents, inclusive of the May 2025 convertible debt, and long-term restricted cash, and future financing will be sufficient to fund its planned expenditures through July 2026. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/zx3r4ms2 About Ocean Power Technologies Ocean Power Technologies, Inc. -- https://oceanpowertechnologies.com/ -- provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets. The Company's PowerBuoy platforms provide clean and reliable electric power and real-time data communications for remote maritime and subsea applications. The Company also offers WAM-V autonomous surface vessels (ASVs) and marine robotics services. The Company's headquarters is located in Monroe Township, New Jersey, with an additional office in Richmond, California. * * * This concludes the Troubled Company Reporter's coverage of Ocean Power Technologies, Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. PAWLUS DENTAL: Seeks to Hire Tax Lady LLC as Accountant ------------------------------------------------------- Pawlus Dental, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Indiana to employ Connie S. Percifield of the Tax Lady LLC as its accountant. The firm's services include: (a) organize applicant’s financial books and records; (b) prepare bi-weekly and monthly operating reports; and (c) prepare projections and formulate a Plan of Reorganization in this proceeding. The accountant shall be paid an hourly rate of $50/hour for accounting services. As disclosed in the court filing, Ms. Percifield is a disinterested party and does not have an adverse relationship to this case. The accountant can be reached at: Connie S. Percifield Tax Lady LLC 2451 N Delaware St. Indianapolis, Indiana 46205 Phone: (812) 343-3087 About Pawlus Dental, Inc. Pawlus Dental, Inc. provides comprehensive dental services in Columbus, Ind., focusing on preserving natural teeth and enhancing smile aesthetics. The practice offers treatments including dental implants, sleep apnea management, clear aligners, periodontal and cosmetic care, preventive and restorative dentistry, wisdom teeth extraction, root canal therapy, and sedation dentistry. Pawlus Dental sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 25-02780) on May 14, 2025, listing $890,156 in total assets and $1,119,328 in total liabilities. John G. Pawlus, president and owner of Pawlus Dental, signed the petition. Judge James M. Carr oversees the case. John Allman, Esq., at Hester Baker Krebs, LLC is the Debtor's bankruptcy counsel. German American Bank, as lender, is represented by: Bruce A. Smith, Esq. Rhonda S. Miller, Esq. Smith & Miller, LLP P.O. Box 387 Bargersville, IN 46106 Phone: (812) 802-0222 E-mail: bsmith@smithmillerlaw.com rmiller@smithmillerlaw.com PEGGY NESTOR: Appeal in Togut Case Dismissed with Prejudice ----------------------------------------------------------- Judge Jennifer H. Rearden of the United States District Court for the Southern District of New York adopted the recommendation of Magistrate Judge Sarah L. Cave that the appeal styled Marianne Nestor, Appellant, -v.- Albert Togut, Appellee, Case No. 24-cv-07274-JHR-SLC (S.D.N.Y.) be dismissed for failure to comply with the Federal Rules of Bankruptcy Procedure. This action is dismissed with prejudice. Peggy Nestor, Appellant's sister, filed for Chapter 11 bankruptcy in the Bankruptcy Court on April 25, 2023. At issue in this appeal is an Aug. 16, 2024 decision by the Honorable Michael E. Wiles authorizing an extension of a Listing Agreement with Sotheby's. On Dec. 4, 2024, Judge Cave issued an order (the "OTSC") directing Appellant to show cause why this appeal should not be dismissed for non-compliance with the Federal Rules of Bankruptcy Procedure. The OTSC allowed Appellant until Dec. 18, 2024 to respond to the OTSC. Appellant did not do so, nor did she request an extension. On Feb. 3, 2025, Judge Cave issued a Report and Recommendation recommending that this appeal be dismissed for failure to comply with the Federal Rules of Bankruptcy Procedure. The parties did not file any objections to the Report and Recommendation. Thus, the parties waived the right to judicial review. The Court finds no clear error in the Report and Recommendation and adopts Judge Cave's recommendation. A copy of the Court's Order dated July 24, 2025, is available at https://urlcurt.com/u?l=bWq3ns PacerMonitor.com. Peggy Nestor filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10627) on April 25, 2023, listing under $1 million in both assets and liabilities. The Debtor is represented by Anne Penachio, Esq. PEGGY NESTOR: Appeal in Togut Case Dismissed Without Prejudice -------------------------------------------------------------- Judge Jennifer H. Rearden of the United States District Court for the Southern District of New York adopted the recommendation of Magistrate Judge Sarah L. Cave that the appeal styled Peggy Nestor, Appellant, -v.- Albert Togut, Appellee, Case No. 24-cv-07113-JHR-SLC (S.D.N.Y.) be dismissed without prejudice. At issue in this appeal is a July 26, 2024 decision by the Honorable Michael E. Wiles compelling Appellant to comply with a previous order and a subpoena issued by the Chapter 11 Trustee. On Oct. 11, 2024, Judge Cave issued an order (the "OTSC") directing Appellant to show cause why this case should not be dismissed for lack of subject matter jurisdiction. The OTSC provided Appellant with an opportunity to rebut, by Oct. 25, 2024, the conclusion that the Court lacks subject matter jurisdiction to consider her appeal. On Oct. 23, 2024, Appellant filed a response to the OTSC. On Nov. 19, 2024, Judge Cave issued a Report and Recommendation recommending that the appeal be dismissed without prejudice because the Court lacks jurisdiction. On Nov. 26, 2024, Appellee filed an objection to the Report and Recommendation. Appellee made a limited objection to the Report and Recommendation, arguing that dismissal of the Appeal should be with prejudice, and not without prejudice as recommended in the Report and Recommendation. Appellee contends that Appellant and her sister, Marianne Nestor, have filed untimely appeals from nearly every order that has been entered by the Bankruptcy Court after Appellee was appointed as Trustee, and that these appeals are attempts to impede the Trustee's efforts to administer the Estate and investigate Appellant's affairs by implementing lawful orders of the Bankruptcy Court; are costly to the estate; and serve no useful purpose. Thus, Appellee submits that dismissal of the Appeal without prejudice will allow Appellant and her sister to refile the time-barred appeals, which would further prejudice Appellee and Appellant's creditors. The Court overrules Appellee's objection, adopts the Report and Recommendation in its entirety, and dismisses Appellant's appeal without prejudice. A copy of the Court's Order dated July 25, 2025, is available at https://urlcurt.com/u?l=sPA9Vt PacerMonitor.com. Peggy Nestor filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10627) on April 25, 2023, listing under $1 million in both assets and liabilities. The Debtor is represented by Anne Penachio, Esq. PEGGY NESTOR: Appeal on Insurance Financing Agreement Dismissed --------------------------------------------------------------- Judge Jennifer H. Rearden of the United States District Court for the Southern District of New York adopted the recommendation of Magistrate Judge Sarah L. Cave that the appeal styled as Marianne Nestor, Appellant, -v.- Albert Togut, Appellee, Case No. 24-cv-07116-JHR-SLC (S.D.N.Y.) be dismissed without prejudice. Peggy Nestor, Appellant's sister, filed for Chapter 11 bankruptcy in the Bankruptcy Court on April 25, 2023. Appellant seemingly became involved in the Bankruptcy Proceedings through her co-ownership of a property with her sister. At issue in this appeal is a July 26, 2024 decision by the Honorable Michael E. Wiles granting the Chapter 11 Trustee's motion to enter into an insurance premium financing agreement. On Oct. 10, 2024, Judge Cave issued an order (the "OTSC") directing Appellant to show cause why this case should not be dismissed for lack of subject matter jurisdiction. The OTSC provided Appellant with an opportunity to rebut, by Oct. 24, 2024, the conclusion that the Court lacks subject matter jurisdiction to consider her appeal. On Oct. 22, 2024, Appellant filed an omnibus response to the OTSC (and to similar orders to show cause issued in her other appeals). On Nov. 19, 2024, Judge Cave issued a Report and Recommendation recommending that the appeal be dismissed without prejudice because the Court lacks jurisdiction. On Nov. 26, 2024, Appellee filed an objection to the Report and Recommendation. Appellee made a limited objection to the Report and Recommendation, arguing that dismissal of the Appeal should be with prejudice, and not without prejudice as recommended in the Report and Recommendation. Appellee contends that Appellant and the Debtor have filed untimely appeals from nearly every order that has been entered by the Bankruptcy Court after Appellee was appointed as Trustee, and that these appeals are attempts to impede the Trustee's efforts to administer the Estate and investigate the Debtor's affairs by implementing lawful orders of the Bankruptcy Court; are costly to the estate; and serve no useful purpose. Thus, Appellee submits that "dismissal of the Appeal without prejudice will allow Appellant to refile the time-barred appeals, which would further prejudice Appellee and the Debtor's creditors. The Court overrules Appellee's objection, adopts the Report and Recommendation in its entirety, and dismisses Appellant's appeal without prejudice. A copy of the Court's Order dated July 25, 2025, is available at https://urlcurt.com/u?l=RB5qxv from PacerMonitor.com. Peggy Nestor filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10627) on April 25, 2023, listing under $1 million in both assets and liabilities. The Debtor is represented by Anne Penachio, Esq. PEGGY NESTOR: Court Won't Remove Albert Togut as Chapter 11 Trustee ------------------------------------------------------------------- Judge Jennifer H. Rearden of the United States District Court for the Southern District of New York adopted the recommendation of Magistrate Judge Sarah L. Cave that the appeal styled as Marianne Nestor, Appellant, -v.- Albert Togut, Appellee, Case No. 24-cv-06246-JHR-SLC (S.D.N.Y.) be dismissed without prejudice. Appellant Marianne Nestor, acting pro se, brings this appeal seeking review of an order of the United States Bankruptcy Court for the Southern District of New York. Peggy Nestor, Appellant's sister, filed for Chapter 11 bankruptcy in the Bankruptcy Court on April 25, 2023. Appellant seemingly became involved in the Bankruptcy Proceedings through her co-ownership of a property with her sister. At issue in this appeal is a July 1, 2024 decision by the Honorable Michael E. Wiles denying a motion to remove Albert Togut, the Chapter 11 Trustee assigned in the Bankruptcy Proceedings. On Oct. 10, 2024, Judge Cave issued an order (the "OTSC") directing Appellant to show cause why this case should not be dismissed for lack of subject matter jurisdiction. The OTSC provided Appellant with an opportunity to rebut, by Oct. 24, 2024, the conclusion that the Court lacks subject matter jurisdiction to consider her appeal. On Oct. 22, 2024, Appellant filed an omnibus response to the OTSC (and to similar orders to show cause issued in her other appeals). On Nov. 19, 2024, Judge Cave issued a Report and Recommendation recommending that the appeal be dismissed without prejudice because the Court lacks jurisdiction. On Nov. 26, 2024, Appellee filed an objection to the Report and Recommendation. Appellee made a limited objection to the Report and Recommendation, arguing that dismissal of the Appeal should be with prejudice, and not without prejudice as recommended in the Report and Recommendation. Appellee contends that Appellant and the Debtor have filed untimely appeals from nearly every order that has been entered by the Bankruptcy Court after Appellee was appointed as Trustee, and that these appeals are attempts to impede the Trustee's efforts to administer the Estate and investigate the Debtor's affairs by implementing lawful orders of the Bankruptcy Court; are costly to the estate; and serve no useful purpose. Thus, Appellee submits that dismissal of the Appeal without prejudice will allow Appellant to refile the time-barred appeals, which would further prejudice Appellee and the Debtor's creditors. The Court overrules Appellee's objection, adopts the Report and Recommendation in its entirety, and dismisses Appellant's appeal without prejudice. A copy of the Court's Order dated July 25, 2025, is available at https://urlcurt.com/u?l=2jL442 from PacerMonitor.com. Peggy Nestor filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10627) on April 25, 2023, listing under $1 million in both assets and liabilities. The Debtor is represented by Anne Penachio, Esq. PEGGY NESTOR: Phillips Nizer Retained as Real Estate Counsel ------------------------------------------------------------ Judge Jennifer H. Rearden of the United States District Court for the Southern District of New York adopted the recommendation of Magistrate Judge Sarah L. Cave that the appeal styled as Marianne Nestor, Appellant, -v.- Albert Togut, Appellee, Case No. 24-cv-06250-JHR-SLC (S.D.N.Y.) be dismissed without prejudice. Appellant Marianne Nestor, acting pro se, brings this appeal seeking review of an order of the United States Bankruptcy Court for the Southern District of New York. Peggy Nestor, Appellant's sister, filed for Chapter 11 bankruptcy in the Bankruptcy Court on April 25, 2023. Appellant seemingly became involved in the Bankruptcy Proceedings through her co-ownership of a property with her sister. At issue in this appeal is a July 1, 2024 decision by the Honorable Michael E. Wiles overruling an objection to retention of the Phillips Nizer firm as special real estate counsel by the Chapter 11 Trustee. On Oct. 10, 2024, Judge Cave issued an order (the "OTSC") directing Appellant to show cause why this case should not be dismissed for lack of subject matter jurisdiction. On Nov. 19, 2024, Judge Cave issued a Report and Recommendation recommending that the appeal be dismissed without prejudice because the Court lacks jurisdiction. On Nov. 26, 2024, Appellee filed an objection to the Report and Recommendation. Appellee made a limited objection to the Report and Recommendation, arguing that dismissal of the Appeal should be with prejudice, and not without prejudice as recommended in the Report and Recommendation. Appellee contends that Appellant and the Debtor have filed untimely appeals from nearly every order that has been entered by the Bankruptcy Court after Appellee was appointed as Trustee, and that these appeals are attempts to impede the Trustee's efforts to administer the Estate and investigate the Debtor's affairs by implementing lawful orders of the Bankruptcy Court; are costly to the estate; and serve no useful purpose. Thus, Appellee submits that dismissal of the Appeal without prejudice will allow Appellant to refile the time-barred appeals, which would further prejudice Appellee and the Debtor's creditors. The Court overrules Appellee's objection, adopts the Report and Recommendation in its entirety, and dismisses Appellant's appeal without prejudice. A copy of the Court's Order dated July 25, 2025, is available at https://urlcurt.com/u?l=WjjaMx from PacerMonitor.com. Peggy Nestor filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10627) on April 25, 2023, listing under $1 million in both assets and liabilities. The Debtor is represented by Anne Penachio, Esq. PEGGY NESTOR: Sister Must Comply with Court Order and Subpoena -------------------------------------------------------------- Judge Jennifer H. Rearden of the United States District Court for the Southern District of New York adopted the recommendation of Magistrate Judge Sarah L. Cave that the appeal styled as Marianne Nestor, Appellant, -v.- Albert Togut, Appellee, Case No. 24-cv-07109-JHR-SLC (S.D.N.Y.) be dismissed without prejudice. Appellant Marianne Nestor, acting pro se, brings this appeal seeking review of an order of the United States Bankruptcy Court for the Southern District of New York. Peggy Nestor, Appellant's sister, filed for Chapter 11 bankruptcy in the Bankruptcy Court on April 25, 2023. Appellant seemingly became involved in the Bankruptcy Proceedings through her co-ownership of a property with her sister. At issue in this appeal is a July 26, 2024 decision by the Honorable Michael E. Wiles compelling Ms. Nestor to comply with a previous order and a subpoena issued by the Chapter 11 Trustee. On Oct. 10, 2024, Judge Cave issued an order (the "OTSC") directing Appellant to show cause why this case should not be dismissed for lack of subject matter jurisdiction. The OTSC provided Appellant with an opportunity to rebut, by Oct. 24, 2024, the conclusion that the Court lacks subject matter jurisdiction to consider her appeal. On Oct. 22, 2024, Appellant filed an omnibus response to the OTSC (and to similar orders to show cause issued in her other appeals), which Judge Cave found difficult to understand but concluded that it did not appear to address the order she appeals. On Nov. 19, 2024, Judge Cave issued a Report and Recommendation recommending that the appeal be dismissed without prejudice because the Court lacks jurisdiction. On Nov. 26, 2024, Appellee filed an objection to the Report and Recommendation. Appellee made a limited objection to the Report and Recommendation, arguing that dismissal of the Appeal should be with prejudice, and not without prejudice as recommended in the Report and Recommendation. Appellee contends that Appellant and the Debtor have filed untimely appeals from nearly every order that has been entered by the Bankruptcy Court after Appellee was appointed as Trustee, and that these appeals are attempts to impede the Trustee's efforts to administer the Estate and investigate the Debtor's affairs by implementing lawful orders of the Bankruptcy Court; are costly to the estate; and serve no useful purpose. Thus, Appellee submits that dismissal of the Appeal without prejudice will allow Appellant to refile the time-barred appeals, which would further prejudice Appellee and the Debtor's creditors. The Court overrules Appellee's objection, adopts the Report and Recommendation in its entirety, and dismisses Appellant's appeal without prejudice. A copy of the Court's Order dated July 25, 2025, is available at https://urlcurt.com/u?l=cXwPfN from PacerMonitor.com. Peggy Nestor filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10627) on April 25, 2023, listing under $1 million in both assets and liabilities. The Debtor is represented by Anne Penachio, Esq. PENNSYLVANIA ECONOMIC: Moody's Affirms Ba2 Rating on 2013A Bonds ---------------------------------------------------------------- Moody's Ratings has affirmed the Ba2 rating on the Pennsylvania Economic Development Financing Authority's Senior Insured Parking Revenue Bonds (Capitol Region Parking System), Series A of 2013, and revised the outlook to negative from stable. The 2013A bond has a par value of $14 million. The Capitol Region Parking System project has total debt of $286 million, most of which is rated based on insurance policies or guarantees not covered by this rating action. The revision of the outlook to negative reflects the project's inability to generate enough surplus revenues to reimburse the surety provider for debt service reserve fund draws during the pandemic. Especially considering debt service will escalate significantly over the next several years, the inability to increase revenues now suggests the project will have trouble keeping up with debt service obligations in the future. RATINGS RATIONALE The Ba2 senior lien parking revenue rating incorporates the project's heavy debt burden (12x revenue) and weak demand. The system has shown very little ability to increase its parking revenues, which poses significant risk over the long term. Total debt service coverage is currently only 1x and debt service will begin escalating dramatically starting in 2031. The system has been unable to reimburse its guarantors for a series of debt service reserve fund draws during the pandemic (it continues to operate under forbearance following these draws). The fact that the system is capable of producing only minimal surplus revenues for these reimbursements over several years suggests it is not well-positioned to cope with escalating debt service in the future. Crucially for the senior lien rating, the Commonwealth of Pennsylvania (Aa2 stable) leases parking spaces from this project at the state capitol. Lease payments alone are sufficient to cover senior lien debt service. While senior lien coverage will remain adequate throughout the life of the rated senior lien bonds, the project's challenged ability to cover all debt service poses numerous risks to all of its bonds, including the senior lien. RATING OUTLOOK The negative outlook captures the very slow pace of reimbursement to the surety provider for a series of debt service reserve fund draws during the pandemic. The rating could come under pressure if the project is unable to increase revenues and accelerate the pace of reimbursements, both because the project is operating under forbearance with the surety provider and because escalating debt service in future years indicates the need to increase revenues substantially. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING -- Increased parking revenues, at least sufficient to meet escalating debt service in 2031 -- Revision of bond documents to eliminate the possibility of acceleration from the Series A bonds -- Acceleration of pace of reimbursements to surety provider FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING -- Failure to reimburse guarantors for historical DSRF draws -- Indication that Assured Guaranty might not be willing to extend its forbearance agreement -- Inability to maintain at least sum sufficient debt service coverage PROFILE Capitol Region Parking System is a parking system located in downtown Harrisburg, PA, consisting of nine parking garages and two parking lots with roughly 7,700 combined spaces, and 1,267 metered on-street parking spaces. The Ba2 rating described in this press release applies only to the system's 2013A senior lien bonds. Its other bonds have ratings based on guarantees or insurance policies from Dauphin County, PA (A2 stable) or Assured Guaranty (insurance financial strength rating A1 stable). METHODOLOGY The principal methodology used in this rating was Publicly Managed Toll Roads and Parking Facilities published in May 2023. PEOPLE POWERED: Seeks to Hire Kasowitz LLP as Bankruptcy Counsel ---------------------------------------------------------------- People Powered LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire Kasowitz LLP as its attorneys. The firm's services include: (a) advising the Debtor with respect to their powers and duties as Debtor in possession; (b) advising and consulting on the conduct of this Chapter 11 Case, including all of the legal and administrative requirements of chapter 11; (c) attending meetings and negotiating with representatives of creditors and other parties in interest; (d) taking all necessary actions to protect, preserve, and maximize the value of the Debtor's estate, including prosecuting actions on the Debtor's behalf, defending any action commenced against the Debtor, and representing the Debtor in negotiations concerning litigation, including objections to claims filed against the Debtor's estate; (e) preparing pleadings in connection with this Chapter 11 Case, including motions, applications, answers, orders, reports, and papers necessary or otherwise beneficial to the administration of the Debtor's estate; (f) advising the Debtor in connection with obtaining financing and the sales and dispositions of assets; (g) appearing before the Court and any appellate courts to represent the interests of the Debtor's estate; (h) taking any necessary action on behalf of the Debtor to negotiate, prepare, and obtain approval of a disclosure statement and confirmation of a chapter 11 plan and all documents related thereto; and (i) performing all other necessary legal services for the Debtor in connection with the prosecution of this Chapter 11 Case, including: (i) analyzing the Debtor's contracts and the assumption and assignment or rejection thereof; (ii) analyzing the validity of liens against the Debtor's property, if any; and (iii) advising the Debtor on other legal matters. Kasowitz's current hourly rates are: Partners $1,275 to $2,400 Special Counsel $1,225 to $1,550 Associates $700 to $1,250 Staff Attorneys $475 to $650 Paralegals $340 to $500 The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Matthew B. Stein, Esq., a partner at Kasowitz Benson Torres 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: Matthew B. Stein, Esq. KASOWITZ BENSON TORRES LLP 1633 Broadway New York, NY 10019 Tel: (212) 506-1700 Fax: (212) 506-1800 About People Powered LLC People Powered LLC, also known as People Powered Nursing (PPN), provides workforce management solutions for healthcare facilities. The Company offers customized systems for labor oversight, time tracking, scheduling, payroll administration, and agency contract management. It focuses on optimizing staffing operations and controlling labor costs through technology and operational support. People Powered LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-42368) on May 16, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Jil Mazer-Marino handles the case. The Debtors are represented by Matthew B. Stein, Esq. at KASOWITZ BENSON TORRES LLP. PETSMART LLC: S&P Affirms 'B+' Issuer Credit Rating, Outlook Neg. ----------------------------------------------------------------- S&P Global Ratings affirmed its ratings, including its 'B+' issuer credit rating on U.S.-based PetSmart LLC and maintained the negative outlook. At the same time, S&P assigned its 'BB-' issue-level rating and '2' recovery rating to PetSmart's proposed term loan, reflecting our expectations for substantial (70%-90%; rounded estimate: 85%) recovery. The negative outlook reflects the risk that S&P could lower the ratings if PetSmart's performance challenges persist and result in leverage sustained above 5x. S&P Global Ratings is also correcting an error in its group rating and controlling shareholder financing analysis of PetSmart. The proposed refinancing will add more secured debt to the company's capital structure. PetSmart plans to issue a new $1.7 billion, seven-year term loan B. The proceeds will be used to repay the existing term loan B that matures in 2028. S&P said, "We expect further sources of funding from other secured and unsecured debt. While funding sources are still being finalized, we expect total secured debt will increase by about $550 million after the transaction. Concurrently, we believe the new capital structure will reduce unsecured debt by about $400 million. Given our forecasted EBITDA for 2025, we project adjusted leverage of about 4.7x in 2025, declining to 4.5x in 2026 due to greater EBITDA generation." The negative outlook reflects the risk that PetSmart's performance challenges will persist, leading to leverage sustained above 5x or weaker free operating cash flow (FOCF) generation. S&P said, "We expect demand in the industry will improve, leading to a more favorable product mix for PetSmart. However, the industry is highly competitive and susceptible to declines in consumer spending. We believe competition from online and discount retailers will remain a challenge for PetSmart in the near term. While we believe profitability will recover in 2026, we continue to view elements of the improvement as dependent on macroeconomic conditions, such as discretionary spending and pet adoption rates. That said, we believe the company has adequate liquidity to navigate the competitive landscape." S&P said, "We corrected an error in our group rating methodology assessment and now apply our criteria for evaluating financing contributed by controlling shareholders. Due to an error, we previously didn't factor into our analysis parent entities formed when Apollo Funds made a strategic investment in PetSmart in October 2023. Accordingly, our analysis now includes a shareholder-financing instrument issued above the operating entity, PetSmart LLC. The instrument was issued as consideration in the Apollo transaction. It doesn't require cash payments and doesn't provide the holder of the instrument with creditor protections that could impair senior-ranking obligations. We therefore treat the instrument as equity and do not include it in our adjusted debt calculation. If ownership or terms of the instrument changes, we could reassess our treatment. "We believe pressures on PetSmart's profitability will abate in 2026. A shift in product mix into lower-margin consumables, pricing actions, and an increase in digital sales have weighed on profitability. Hardgoods and specialty product sales, which tend to have higher margins but are more discretionary, have been pressured by weak consumer spending and headwinds in the industry. In response, the company has invested in price, upgraded its product assortment and continued to invest behind digital capabilities. Although digital sales have a lower margin due to fulfilment costs, we believe PetSmart's initiatives toward omnichannel retail will lead to stronger sales and growth in its loyalty program, contributing to greater EBITDA generation in 2026. Furthermore, we expect growth in services will improve foot traffic and cross-shopping among customers. Our base case projects adjusted EBITDA margins in the low 16% area this year, improving to the mid 16% area in 2026. We forecast adjusted EBITDA generation of about $1.59 billion this year and $1.69 billion next year compared with $1.73 billion in 2024. "We expect the sponsors' financial policies to be supportive of maintaining leverage below 5x. We forecast solid FOCF generation and expect PetSmart will prioritize deleveraging. Our base case projects working capital will be a significant source this year and about $200 million in capex, leading us to forecast at least $400 million of reported FOCF. We expect about two-thirds of capex will be spent on growth initiatives, including new store openings, further enhancements to digital capabilities, and in-store improvements. In our view, internally generated cash flow will be sufficient for the company to pursue its growth investments and maintain adequate liquidity. The company has a track record of sizable dividends to its shareholders while maintaining leverage below 5x. We expect the company will continue declaring dividends, subject to restricted payment terms within its loan documents. BC Partners and Apollo have indicated their intent to reduce leverage in preparation for an eventual IPO. The negative outlook reflects the risk that PetSmart's performance challenges will persist, resulting in weaker credit metrics and cash-flow generation." S&P could lower its ratings on PetSmart if we expect leverage will be sustained above 5x. This could occur if: -- Its operating performance continues to deteriorate due to heightened competitive activity, resulting in continued market share loss, industry softness from continued pressure on discretionary spending, or an inability to execute on its sales initiatives; or -- The company's sponsors pursue a leveraging transaction or change of control, or its financial policy becomes more aggressive, such as continuing to take dividends amid weakening performance. S&P could revise the outlook to stable if the company maintains leverage below 5x. This could occur if: -- Operating performance improves, including stabilizing comparable-store sales and EBITDA margin; -- The company demonstrates a financial policy consistent with maintaining S&P Global Ratings-adjusted leverage below 5x; and -- PetSmart continues to generate meaningful levels of positive FOCF. PHYSICAL INVESTMENTS: Hires Magee Goldstein Lasky as Attorney ------------------------------------------------------------- Physical Investments Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Virginia to hire Magee Goldstein Lasky & Sayers, P.C. as its attorneys. The firm will provide these services: (a) advise the Debtor with respect to its powers and duties; (b) advise and consult on the conduct of the bankruptcy case; (c) attend meetings and negotiate with representatives of the Debtor's creditor and other parties in interest; (d) take all necessary action to protect and preserve the Debtor's estate; (e) prepare all legal papers necessary or otherwise beneficial to the administration of the Debtor's estate; (f) represent the Debtor in connection with obtaining post-petition financing, if necessary; (g) advise the Debtor in connection with any potential sale of assets; (h) appear before the court to represent the interests of the Debtor's estate before the court; (i) take any necessary action on behalf of the Debtor to negotiate, prepare on behalf of the Debtor, and obtain approval of a Chapter 11 plan and documents related thereto; and (j) perform all other necessary or otherwise beneficial legal services to the Debtor in connection with prosecution of this bankruptcy case. The firm will be paid at these hourly rates: Attorneys $425 Paralegal and Paraprofessional $115 ` In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer of $14,217, including the filing fee of $1,738 from the Debtor. Andrew Goldstein, Esq., an attorney at Magee Goldstein Lasky & Sayers, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Andrew S. Goldstein, Esq. Magee Goldstein Lasky & Sayers, P.C. P.O. Box 404 Roanoke, VA 24003 Telephone: (540) 343-9800 Facsimile: (540) 343-9898 Email: agoldstein@mglspc.com About Physical Investments Inc. Physical Investments Inc. operates as a real estate lessor. Physical Investments Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Va. Case No. 25-70650) on July 18, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Paul M. Black handles the case. The Debtor is represented by Andrew S. Goldstein, Esq. at MAGEE GOLDSTEIN LASKY & SAYERS, P.C. PLATE RESTAURANT: Taps Phillips & Thomas LLC as Bankruptcy Counsel ------------------------------------------------------------------ Plate Restaurant Group LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Kansas to hire Phillips & Thomas LLC as bankruptcy counsel. The services to be rendered include providing the services needed in representing a Chapter 11 debtor-in-possession, which include: preparation of the bankruptcy forms and schedules, attendance at the Sec. 341 meeting and other court hearings, preparation of the disclosure statement and Chapter 11 plan, client conferences, filing monthly operating reports, phone calls, emails, dealing with creditors, and resolving confirmation issues. George J. Thomas will charge $350 per hour. The firm has received a retainer amount of $11,595.33, and a filing fee of $1,738. George J Thomas, Esq., a partner at Phillips & Thomas LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: George J Thomas, Esq. Phillips & Thomas LLC 5251 W 116th Place, Suite 200 Leawood, KS 66211 Tel: (913) 385-9900 Email: geojthomas@gmail.com About Plate Restaurant Group LLC Plate Restaurant Group LLC is a Kansas City-based restaurant business. Plate Restaurant Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No. 25-20996) on July 18, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Dale L. Somers handles the case. The Debtor is represented by George J. Thomas, Esq. at Phillips & Thomas, LLC. PLAZA UTILITIES: Voluntary Chapter 11 Case Summary -------------------------------------------------- Three affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Plaza Utilities LLC 25-04649 10 W Boyd Ave Greenfield, IN 46140 McGee Corner LLC 25-04651 10 W Boyd Ave Greenfield, IN 46140 Credo Investments LLC 25-04653 10 W Boyd Ave Greenfield, IN 46140 Business Description: Plaza Utilities LLC, Credo Investments, and McGee Corner are real estate entities that hold fee simple ownership of undeveloped commercial land in New Palestine, Indiana. The three companies own adjacent or nearby parcels along W US 52 and South 600 West, and are involved in property holding and potential development in the area. Chapter 11 Petition Date: August 4, 2025 Court: United States Bankruptcy Court Southern District of Indiana Judge: Hon. James M Carr (25-04649) Hon. Jeffrey J Graham (25-04651 and 25-04653) Debtors' Bankruptcy Counsel: Matthew D Boruta, Esq. MATTHEW D BORUTA 11650 Lantern Rd #106 Fishers, IN 46038 Tel: 317-637-7000 Email: boruta17@hotmail.com Plaza Utilities' Total Assets: $3,244,300 Plaza Utilities' Total Liabilities: $795,249 McGee Corner LLC's Total Assets: $985,400 McGee Corner LLC's Total Liabilities: $318,631 Credo Investments LLC's Total Assets: $986,100 Credo Investments LLC's Total Liabilities: $318,631 The petitions were signed by Trevor T. Lloyd-Jones as president and single member. The Debtors indicated in the petitions that no creditors hold unsecured claims. Full-text copies of the petitions are available for free on PacerMonitor at: https://www.pacermonitor.com/view/6OVDMNA/Plaza_Utilities_LLC__insbke-25-04649__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/6U4DRQY/McGee_Corner_LLC__insbke-25-04651__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/6OSTMUQ/Credo_Investments_LLC__insbke-25-04653__0001.0.pdf?mcid=tGE4TAMA POSITRON CORP: Ex-Chair's Bid to Vacate $1.917M Judgment Okayed --------------------------------------------------------------- In the appeal styled TRADEX GLOBAL FUND SPC LTD., TRADEX GLOBAL MASTER FUND, SPC LTD., and TRADEX GLOBAL ADVISORS, LLC, Plaintiffs-Appellants, v. SOLARIS OPPORTUNITY FUND L.P. and PATRICK G. ROONEY, Defendants-Appellees (Ill. App. Ct.), Justices Margaret Stanton McBride, Rena Marie Van Tine and David Ellis of the Appellate Court of Illinois First Judicial District affirmed the decision of the Circuit Court of Cook County granting the motion of Patrick G. Rooney to vacate the parties' $1.917 million agreed judgment. Enforcement proceedings between judgment creditor Tradex Global Advisors, LLC and judgment debtor Patrick G. Rooney ended when the circuit court granted Rooney's motion to vacate the judgment. The ruling was based on the "Unconditional General Release" that Tradex executed in exchange for $125,000 in a Texas bankruptcy action involving a company that Rooney owned a significant part of, Positron Corporation. Tradex argues that the circuit court misconstrued the release and that section 12-183(h) of the Code of Civil Procedure, 735 ILCS 5/12/183(h) (West 2016), required nothing less than full payment of the judgment, which Tradex has not received. This suit is the second of three actions that Tradex has used to pursue funds it placed in Solaris Offshore Fund in 2007, which was an investment fund that Rooney was managing. According to Tradex's amended complaint, Rooney would not honor Tradex's $2.067 million redemption notice, so in late 2008, Tradex first sued Rooney, Solaris Offshore Fund, Solaris Opportunity Fund, L.P, and Solaris Management, LLC, in Delaware. The investment fund could not honor Tradex's redemption notice because of Rooney's excessive purchase of shares in Positron when Positron was financially troubled. Positron was a medical technology company incorporated in Texas and officed in Westmont, Illinois. Rooney's purchases not only violated the investment fund's private placement memo, but also, he did not disclose his personal interest in propping up Positron when it had no other sources of funding. Rooney became Positron's chair since 2004, started drawing a salary from Positron in 2005, began accumulating stock options in 2006, and subsequently became its CEO. The Delaware action settled with an agreement that Tradex would dismiss its suit and the Solaris entities would make two payments to Tradex in 2009 that would total $2.067 million. Tradex's second suit was this one in Illinois in 2012 against Rooney and the Solaris entities. In its amended complaint, Tradex also sued Positron and Rooney's defunct limited liability company, SBD Investments LLC. Tradex stated that it had received only $150,000, could not sell the Positron shares, and was owed $1.917 million on the Delaware agreement ($2.067 million agreement - $150,000 payment = $1.917 million). Tradex claimed that Rooney was "the only functioning officer and director" of the Solaris entities, used the companies "as a mere façade for his own operations, namely, raising money for Positron," and had "siphoned" every possible dollar to Positron "for his own benefit." The year 2015 was also when some of Positron's creditors forced the Texas company into Chapter 11 involuntary bankruptcy proceedings. Positron's bankruptcy would be the third legal action that Tradex would use in pursuit of some of the millions of dollars it had once entrusted to Rooney's management. Rooney participated as one of Positron's creditors. Positron's creditors negotiated a new reorganization plan in March 2017 that included Tradex and in May 2017 the plan was approved. In order to satisfy Tradex's claim, it was agreed and ordered: (1) Positron will market and sell the Westmont Real Estate and use the first $125,000 of the net proceeds of sale to satisfy the claim of Tradex in full; (2) contemporaneous to the transfer of the $125,000, Tradex and Positron will exchange mutual and comprehensive releases; and (3) Tradex will surrender to Positron any and all shares of Positron stock held by Tradex or any party related to Tradex. In other words, the transfer of $125,000, relinquishment of every share of Positron that Tradex had received from Rooney, and execution of "mutual and comprehensive releases" would sever all of Tradex and Positron's connections. The Texas reorganization plan indicates six classes of claims. Tradex was the only Class 1 claimant and its $1.917 million claim was by far the largest of all the claims. Class 6 consisted of four "insiders" at Position holding promissory notes or other general unsecured claims which together totaled about $1.267 million. The circuit court reasoned that the language of the release, Rooney's status as an "insider" and the fact that he gave consideration for the release (the $125,000) were sufficient to establish a prima facie case to vacate the judgment, and that Tradex had no persuasive argument to the contrary. The circuit court determined that the agreement did release the Illinois money judgment, and it denied Tradex's motion to reconsider. A finding about the validity of a release is against the manifest weight of the evidence only if the opposite conclusion is clearly apparent or where a decision is palpably erroneous and wholly unwarranted. In this case, although the 2017 release does not refer to Rooney or the 2015 Illinois action by name, the agreement's very clear and broad language encompasses him and the judgment debt at issue. This is particularly true when the circumstances suggest that Tradex considered Rooney's debt to be uncollectible. Section 12-183(h) states that the circuit court may vacate the judgment and dismiss the action upon "the filing of a release or satisfaction in full satisfaction of judgment." The legislature used the word "or" to separate the word "release" from "satisfaction in full satisfaction." According to the Appellate Court, this wording means that either a "release of judgment" or a "satisfaction in full satisfaction of judgment" satisfies the statute. A release is the act of giving up an enforceable right or claim. Rooney filed Tradex's release, in satisfaction of the statutory criterion. The Justices hold, "We find that the decision to grant Rooney's motion to vacate the 2015 agreed judgment as to Rooney was not against the manifest weight of the evidence. We affirm the judgment of the circuit court." A copy of the Court's Order dated July 29, 2025, is available at https://urlcurt.com/u?l=We12N8 About Positron Corporation Headquartered in Fishers, Indiana, Positron Corporation is a molecular imaging company focused on nuclear cardiology. Three alleged creditors filed an involuntary Chapter 11 petition (Bankr. N. D. Texas Case No. 15-50205) on August 28, 2015. The petitioning creditors are DX LLC, Moress LLC, and Jason and Suzanne Kitten. The creditors are represented by Max R. Tarbox, Esq., at Tarbox Law P.C. and Daniel Zamudio, Esq., at Zamudio Law Professionals P.C. Meanwhile, the Debtor hired Jeff Carruth, Esq., at Weycer, Kaplan, Pulaski & Zuber, P.C. as its legal counsel. On September 7, 2016, an order of relief under Chapter 11 of the Bankruptcy Code was entered in the case with respect to Positron. As of Sept. 30, 2015, Positron had $1.52 million in total assets, $3.10 million in total liabilities and a total stockholders' deficit of $1.58 million. No Chapter 11 trustee or committee of unsecured creditors has been appointed in the case. On March 6, 2017, the Debtor filed a disclosure statement, which explains its Chapter 11 plan of reorganization. The plan proposes to pay Class 5 general unsecured creditors 5% of their allowed claims. These creditors will receive equal monthly payments over 60 months following the effective date of the plan. PRND3L INC: Stephen Darr of Huron Named Subchapter V Trustee ------------------------------------------------------------ The U.S. Trustee for Region 1 appointed Stephen Darr of Huron Consulting Group as Subchapter V trustee for PRND3L Inc. Mr. Darr will be paid an hourly fee of $825 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Darr declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Stephen Darr Huron Consulting Group 265 Franklin Street, Suite 402 Boston MA 02110 Phone: (617) 226-5593 Email: sdarr@hcg.com About PRND3L Inc. PRND3L Inc., operating as MY SALON Suite of Westborough, operates a salon suite rental facility at 153 Turnpike Rd. in Westborough, Mass., where beauty professionals can lease private, fully-equipped salon suites to run their independent businesses. PRND3L Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-40801) on July 29, 2025. In its petition, the Debtor reported estimated assets between $500,000 and $1 million and estimated liabilities between $100,000 and $500,000. Honorable Bankruptcy Judge Elizabeth D. Katz handles the case. The Debtor is represented by Joseph S.U. Bodoff, Esq. and Rion Vaughan, Esq., at Rubin and Rudman LLP. PROSPECT MEDICAL: Gets Additional $55MM DIP Loan From JMB --------------------------------------------------------- Prospect Medical Holdings, Inc. and its hospital-related affiliates on August 5 received interim approval from the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, to enter into a third amendment to their existing post-petition financing arrangement with JMB Capital Partners Lending, LLC. The amendment will provide the Debtors with an additional $55 million in financing, with $15 million available immediately after the court's interim approval, and the remaining $40 million accessible after meeting certain conditions, including a court-approved stalking horse agreement for the sale of their California assets. The new financing is needed because the initial expectations about the timeline for selling hospital assets have proven overly optimistic, and the proceedings have extended far beyond initial projections, according to the Debtors. The Debtors had anticipated quickly closing transactions for hospitals in Pennsylvania, Connecticut, and Rhode Island. However, the Pennsylvania hospitals were only closed in May 2025 after efforts to find a buyer failed, and the anticipated sale to Yale for the Connecticut hospitals fell through, necessitating a renewed marketing process. The Rhode Island sale has been delayed due to regulatory challenges, though it is now expected to close in late August 2025. The longer-than-expected duration of these sales processes has severely strained the Debtors' liquidity. Despite these setbacks, the Debtors have made progress, including the successful closing of the Astrana Health transaction (used to pay down $67 million of the JMB DIP and satisfy PBGC secured claims), and securing a $50.3 million purchase agreement for Pennsylvania ASC/Imaging Sites. The supplemental JMB DIP follows a previously approved $30 million upsize to the original DIP facility, but even with that additional capital, the Debtors warned at a July 7 hearing that they would still need more funds. The proposed $55 million facility will help fund operations through October, including completing the hospital sale processes, paying employees and operating expenses, and facilitating the confirmation of a Chapter 11 plan. Without this financing, the Debtors will run out of cash by August 8. Although Medical Properties Trust, another creditor and post-petition lender, previously offered a competing financing proposal, the Debtors determined that JMB's terms are more favorable under current circumstances. Nonetheless, the Debtors have stated they will continue engaging with both JMB and MPT to seek the best path forward. They also disclosed that MPT had initially objected to the $30 million DIP upsize but later proposed a competing financing deal without fees, which JMB then countered with the current supplemental DIP offer. The DIP Credit Agreement, which includes typical DIP financing terms: a 4% commitment fee and a 6% exit fee, both non-refundable and fully earned upon execution; the creation of superpriority administrative expense claims; and first-priority liens in accordance with previous DIP orders. The agreement is conditioned on several milestones, including timely court approval and entry into a stalking horse agreement for the California assets. A copy of the August 5 interim order is available at https://is.gd/2gpRd9 About Prospect Medical Holdings Prospect Medical Holdings owns Roger Williams Medical Center, Our Lady of Fatima Hospital, and several other healthcare facilities. Prospect Medical sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80002) on Jan. 11, 2025. In the petition filed by Paul Rundell, as chief restructuring officer, the Debtor estimated assets and liabilities between $1 billion and $10 billion each. Bankruptcy Judge Stacey G. Jernigan handles the case. The Debtors' General Bankruptcy Counsel is Thomas R. Califano, Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas, Texas, and William E. Curtin, Esq., Patrick Venter, Esq., and Anne G. Wallice, Esq., at Sidley Austin LLP, in New York. The Debtors' Financial Advisor is ALVAREZ & MARSAL NORTH AMERICA, LLC. The Debtors' Investment Banker is HOULIHAN LIKEY, INC. The Debtors' Claims, Noticing & Solicitation Agent is OMNI AGENT SOLUTIONS, INC. PROSPECT MEDICAL: No Patient Care Concern, 3rd PCO Report Says -------------------------------------------------------------- Suzanne Koenig, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Northern District of Texas her third report regarding the quality of patient care provided by Medical Properties Trust Inc. and its affiliates. In her report, which covers the period from May 31 to July 29, the Ombudsman developed a standardized methodology to ensure consistency in reporting among the Ombudsman's representatives visiting each location due to the number of hospitals operated by the Debtors. Each site visit included the Ombudsman and one SAK Healthcare representative who was a nurse by training. During each visit, the Ombudsman and her representative met with the relevant hospital's leadership team, conducted a walk-through tour of each hospital and its buildings, and interviewed key professional staff and patients where possible. The Ombudsman and her representatives also requested and reviewed hospital records as part of this assessment process. The Ombudsman did not observe any material issues impacting patient care requiring this Court's immediate attention while the individual hospital Reports will provide a detailed analysis of each hospital and patient care at those hospitals. The Ombudsman did observe certain areas in which the hospitals could improve the patient care experience and has discussed these issues with the Debtors. The Ombudsman did not observe any staffing issues that put patients in immediate danger or jeopardized their care. The Debtors' staffing levels appear to be sufficient based on the reporting provided to the Ombudsman throughout this Report Period. The Debtors are actively recruiting and filling vacant shifts with float pools, overtime, agency staff, per diems, and bonuses. Ms. Koenig did not find any concerns related to procurement of adequate supplies, such as food, drugs, and medical supplies, among other necessary items. Based on the Ombudsman's observations during each of the visits, the supply rooms appeared to be stocked with enough supplies and equipment to provide safe patient care. The Ombudsman observed that the hospitals' kitchens were generally clean, well-organized, efficient, and compliant with regulatory requirements, except for the kitchen department at LA Community Norwalk. LA Community Norwalk's kitchen department was cluttered, which created workflow challenges, and the floors were dirty. The Ombudsman believes that patient safety and care are not currently at risk but encourages leadership to make the necessary improvements as soon as possible. The Ombudsman noted that there has been low census across the Connecticut hospitals. The Ombudsman observed staff committed to providing excellent care to the patients and urges all parties in interest and the communities to continue supporting these hospitals, many of which are critical to their localities. The Ombudsman interviewed patients across the hospitals, and they consistently reported receiving outstanding care. The ombudsman may be reached at: Suzanne Koenig, CEO SAK Healthcare 300 Saunders Road, Suite 300 Riverwoods, IL 60015 Phone: 847-446-8400 Email: skoenig@sakhealthcare.com About Prospect Medical Holdings Prospect Medical Holdings owns Roger Williams Medical Center, Our Lady of Fatima Hospital, and several other healthcare facilities. Prospect Medical Holdings and its affiliates filed Chapter 11 petitions (Bankr. N.D. Texas Lead Case No. 25-80002) on January 11, 2025. At the time of the filing, Prospect Medical Holdings reported between $1 billion and $10 billion in both assets and liabilities. Judge Stacey G. Jernigan handles the cases. The Debtors' bankruptcy attorneys are Thomas R. Califano, Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas, Texas; and William E. Curtin, Esq., Patrick Venter, Esq., and Anne G. Wallice, Esq., at Sidley Austin LLP, in New York. The Debtors also tapped Alvarez & Marsal North America, LLC as financial advisor; Houlihan Lokey, Inc. as investment banker; and Omni Agent Solutions, Inc. as claims, noticing and solicitation agent. Suzanne A. Koenig is the patient care ombudsman appointed in the Debtors' cases. PUERTO RICO: White House Fires Five Oversight Board Members ----------------------------------------------------------- Jim Wyss, Skylar Woodhouse, and Michelle Kaske of Bloomberg News report that the White House has dismissed five of the seven members of the federal board overseeing Puerto Rico's finances, a move that inserts the administration directly into the island's critical debt restructuring and contract negotiations. According to emails reviewed by Bloomberg, Board Chair Arthur Gonzalez, along with Cameron McKenzie, Betty Rosa, Juan Sabater, and Luis Ubiñas, were informed of their removal on Friday, August 1, 2025. Andrew Biggs and John Nixon remain on the Financial Oversight and Management Board. The firings were first reported by Breitbart. "As far as the Oversight Board knows, we have seven active board members and we have not heard otherwise," a spokesperson for the board said Tuesday, August 5, 2025. While the board has saved Puerto Rican taxpayers an estimated $55 billion over 40 years in reduced creditor payments, it has recently faced political backlash. Far-right activist Laura Loomer, an ally of former President Donald Trump, criticized the board’s spending and called for sweeping changes. "This is a colossal failure all around," Loomer posted Saturday on X. "Every single one of these lawyers and consultants needs to be fired, and a new Board needs to be installed to clean up this mess." She pointed to the estimated $2 billion the board has spent on bankruptcy lawyers and advisers over the past decade and claimed Trump has the authority to replace the board entirely. Internal emails cited by Bloomberg indicate that concerns over salaries and prolonged bankruptcy proceedings played a role in the firings. Matt Fabian, a partner at Municipal Market Analytics, noted the firings were in line with broader efforts by Trump to overhaul government boards and organizations. "It should not have been a surprise that this could happen," he said. The oversight board, established by Congress in 2016 under the Obama administration, is locked in a years-long effort to reduce the Puerto Rico Electric Power Authority's (PREPA) debt from $10 billion to $2.6 billion, amid opposition from bondholders who argue the utility can afford to pay more. The board has also delayed a multibillion-dollar liquefied natural gas deal between Puerto Rico's government and New Fortress Energy. Shares of New Fortress Energy, led by billionaire Wes Edens, jumped as much as 17% Tuesday before settling with a 7.9% gain as of 12:41 p.m. Puerto Rico continues to struggle with some of the highest energy costs and least reliable service in the U.S., and the ongoing PREPA restructuring is seen as essential to the island’s economic stability. Despite resistance from certain bondholders, the board has enforced fiscal discipline by aligning spending with revenue, a sharp contrast to the years preceding Puerto Rico's historic bankruptcy. In 2022, after local lawmakers refused to authorize payments to general obligation bondholders, the board intervened and distributed nearly $11 billion to complete that portion of the debt restructuring. PREPA's bankruptcy was filed in 2017 but has been repeatedly delayed due to broader debt issues, natural disasters like Hurricane Maria, the COVID-19 pandemic, and political turnover that unraveled previous restructuring agreements. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agenciesÃ¢â‚¬Å¡ Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. PURDUE PHARMA: Court Affirms Denial of Class Certification Motion ----------------------------------------------------------------- In the appeal styled as AMANDA MORALES, Appellant, – against – PURDUE PHARMA L.P., et al., Appellees, Case No. 25-CV-484 (S.D.N.Y.), Judge Cathy Seibel of the United States District Court for the Southern District of New York affirmed the order of the the United States Bankruptcy Court for the Southern District of New York denying Amanda Morales's motion for class certification. Before the Court is the appeal of Appellant Amanda Morales from a Dec. 12, 2024 order of Judge Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York, in the Chapter 11 bankruptcy proceeding captioned In re Purdue Pharma L.P., et al., No. 19-BK-23649 (Bankr. S.D.N.Y.). In 2010, Appellant's father died from serotonin syndrome, as a result of interactions and risks from concomitant use with benzodiazepines and other CNS depressants' and OxyContin. Appellant alleges Purdue Pharma, L.P. did not adequately warn about the danger of such drug interactions until 2016, when Debtors-Appellees added these risks to the OxyContin box label warning. As a result, since at least 2021, she has participated as a pro se litigant in the bankruptcy action filed by various U.S.-based Purdue Pharma entities on Sept. 15, 2019, and has filed several motions and letters with the Bankruptcy Court. On Oct. 14, 2024, Appellant filed a Motion for Class Certification, seeking certification, pursuant to Rule 23 of the Federal Rules of Civil Procedure, of a class of personal injury claimants divided into two subclasses. The proposed subclasses were: (1) personal injury/death related to addiction and overdose and abatement programs, and (2) wrongful death and personal injury from failing to warn of known drug interactions or unlisted side effects/adverse effects. Appellant sought certification of the subclasses because the personal injury class of creditors is too general and the committee of unsecured creditors hasn't fairly represented unrelated claims like hers that aren't related to addiction or the opioid crisis. Debtors-Appellees objected to Appellant's request for class certification on Dec. 5, 2024. On Dec. 12, 2024, the Bankruptcy Court held a hearing and denied the motion because a pro se party such as Ms. Morales can't act as a class representative. On Jan. 9, 2025, the Bankruptcy Court issued a written Order denying the request for class certification for the reasons stated at the Dec. 12 hearing. Ms. Morales timely appealed on Jan. 16, 2025. Appellant argues that the two subclasses she proposed should be certified because the proposed subclasses meet the requirements of Federal Rule of Civil Procedure 23, and because her claims aren't related to the opioid crisis and her interests are different. Judge Seibel holds, "Appellant does not offer any argument as to why she can proceed with class certification as a pro se litigant. Further, her argument that she is 'not trying to speak on anyone else's claims just hers,' is pointedly at odds with the role of a class representative -- to represent the interests of other similarly situated individuals. To the extent that Appellant is not seeking to act as the class representative, the class cannot be certified, as without a class representative, class certification is unavailable. Accordingly, again, the Bankruptcy Court did not abuse its discretion in denying the request for class certification." A copy of the Court's Opinion & Order is available at http://urlcurt.com/u?l=itg08Kfrom PacerMonitor.com. Counsel for Debtors-Appellees and Debtors in Possession: Marshall S. Huebner, Esq. Benjamin S. Kaminetzky, Esq. James I. McClammy, Esq. Eli J. Vonnegut, Esq. DAVIS POLK & WARDWELL LLP 450 Lexington Avenue New York, NY 10017 E-mail: marshall.huebner@davispolk.com ben.kaminetzky@davispolk.com james.mcclammy@davispolk.com eli.vonnegut@davispolk.com About Purdue Pharma LP Purdue Pharma L.P. and its subsidiaries -- http://www.purduepharma.com/-- develop and provide prescription medicines and consumer products that meet the evolving needs of healthcare professionals, patients, consumers and caregivers. Purdue's subsidiaries include Adlon Therapeutics L.P., focused on treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and related disorders; Avrio Health L.P., a consumer health products company that champions an improved quality of life for people in the United States through the reimagining of innovative product solutions; Imbrium Therapeutics L.P., established to further advance the emerging portfolio and develop the pipeline in the areas of CNS, non-opioid pain medicines, and select oncology through internal research, strategic collaborations and partnerships; and Greenfield Bioventures L.P., an investment vehicle focused on value-inflection in early stages of clinical development. Opioid makers in the U.S. are facing pressure from a crackdown on the addictive drug in the wake of the opioid crisis and as state attorneys general file lawsuits against manufacturers. More than 2,000 states, counties, municipalities and Native American governments have sued Purdue Pharma and other pharmaceutical companies for their role in the opioid crisis in the U.S., which has contributed to the more than 700,000 drug overdose deaths in the U.S. since 1999. OxyContin, Purdue Pharma's most prominent pain medication, has been the target of over 2,600 civil actions pending in various state and federal courts and other fora across the United States and its territories. On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19 23649), after reaching terms of a preliminary agreement for settling the massive opioid litigation. The Debtors' consolidated balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets and $562 million in liabilities. U.S. Bankruptcy Judge Robert Drain oversees the cases. The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP, as legal counsels; PJT Partners as investment banker; AlixPartners as financial advisor; and Grant Thornton, LLP as tax structuring consultant. Prime Clerk, LLC, is the claims agent. Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the official committee of unsecured creditors appointed in the Debtors' bankruptcy cases. David M. Klauder, Esq., is the fee examiner appointed in the Debtors' cases. The fee examiner is represented by Bielli & Klauder, LLC. * * * U.S. Bankruptcy Judge Robert Drain in early September 2021 approved a plan to turn Purdue into a new company (Knoa Pharma LLC) no longer owned by members of the Sackler family, with its profits going to fight the opioid epidemic. The Sackler family agreed to pay $4.3 billion over nine years to the states and private plaintiffs and in exchange for a lifetime legal immunity. The deal resolves some 3,000 lawsuits filed by state and local governments, Native American tribes, unions, hospitals and others who claimed the company's marketing of prescription opioids helped spark and continue an overdose epidemic. Separate appeals to approval of the Plan have already been filed by the U.S. Bankruptcy Trustee, California, Connecticut, the District of Columbia, Maryland, Rhode Island and Washington state, plus some Canadian local governments and other Canadian entities. In early March 2022, Purdue Pharma reached a nationwide settlement over its role in the opioid crisis, with the Sackler family members boosting their cash contribution to as much as $6 billion. The settlement was hammered out with attorneys general from the eight states -- California, Connecticut, Delaware, Maryland, Oregon, Rhode Island, Vermont and Washington -- and D.C. who had opposed the previous settlement. RCB ENTERPRISES: Hires George E. Jacobs as Bankruptcy Counsel ------------------------------------------------------------- RCB Enterprises Co. LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Michigan to hire George E. Jacobs, Esq. of Bankruptcy Law Offices as counsel. The attorney will provide these services: a. give the LLC legal advice with respect to its rights and duties in connection with this Chapter 11 proceeding; and b. perform all other legal services which may be necessary. George E. Jacobs, Esq. will be paid at $350 per hour. The firm was paid a retainer in the amount of $5,000 and will also be reimbursed for reasonable out-of-pocket expenses incurred. George E. Jacobs, Esq., a partner at Bankruptcy Law Offices, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: George E. Jacobs, Esq. Bankruptcy Law Offices 2425 S. Linden Rd., Ste. C Flint, MI 48532 Tel: (810) 720-4333 Email: George@bklawoffice.com About RCB Enterprises Co. LLC RCB Enterprises Co. LLC, doing business as Spoiler And Wing King, specializes in automotive accessories, particularly spoilers and wings for vehicles. RCB Enterprises Co. LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mich. Case No. 25-31477) on July 1, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100,000 and $500,000 and estimated liabilities between $100,000 and $500,000. The Debtors are represented by George E. Jacobs, Esq. at Bankruptcy Law Offices. RED PLANET: Moody's Rates New Senior Secured First Lien Loans 'B3' ------------------------------------------------------------------ Moody's Ratings assigned B3 ratings to Red Planet Borrower, LLC's (d/b/a "Liftoff" or the "company") new senior secured first-lien bank credit facilities comprising a $1.86 billion term loan due 2032 and $150 million revolving credit facility (RCF) due 2030. Liftoff's B3 corporate family rating and stable outlook remain unchanged. Net proceeds from the new bank credit facilities will be used to fully refinance the existing senior secured first-lien bank credit facilities, consisting of $1.57 billion outstanding term loans due 2028 and a $150 million RCF due 2026, and pay a $280 million cash distribution to shareholders, which include private equity sponsors Blackstone Inc. and General Atlantic. The new credit facilities will be issued by the same borrower, secured by the same collateral package, guaranteed by the same guarantors, and contain substantially the same terms and conditions as the existing credit facilities. Upon transaction closing and full extinguishment of the existing credit facilities, Moody's will withdraw their ratings. The assigned ratings are subject to review of final documentation and no material change in the size, terms and conditions of the transaction as advised to us. RATINGS RATIONALE Though pro forma total debt to EBITDA will increase to roughly 7.8x from 6.6x at LTM March 31, 2025, Moody's views the refinancing as credit neutral given that Moody's projects leverage will decrease to the 6x-6.5x area over the next twelve months via EBITDA expansion owing to the company's continued solid operating performance (metrics are Moody's adjusted). Liftoff's B3 CFR largely reflects the company's elevated financial leverage and aggressive financial policies, evidenced by the pending debt-funded shareholder dividend, its second in less than a year. Ratings also consider Liftoff's small scale relative to Big Media-Tech, including social media providers, exposure to cyclical advertising revenue, and competitive pressures in a rapidly changing environment. Consequently, the company will need to continue to exercise technical focus and financial discipline while navigating potential operational challenges amid the industry's fast pace of innovation, which requires constant monitoring and investment to stay competitive. Despite Liftoff's small size, Moody's expects the company will benefit from its position as one of the largest independent mobile marketing platforms providing both demand-side and supply-side growth solutions for advertisers and publishers, powered by its proprietary neural net technology, as well as diversification across gaming and many other verticals. Following the programmatic advertising industry's demand recovery in 2023, Liftoff has continued to exhibit strong revenue and EBITDA growth due to the current management team's efforts to enhance customer performance and better align the company's R&D cadence with targeted customer solutions. Liftoff's core ad revenue accounts for roughly 98% of total revenue as of Q1 2025 driven by strong user demand in the mobile app ecosystem. As a result of solid revenue growth, cost discipline and merger synergies, Liftoff's Moody's adjusted EBITDA margins have strengthened and free cash flow (FCF) increased to $66 million at LTM Q1 2025 (excluding the $339 million debt-financed shareholder dividend paid in Q4 2024) from $36 million in 2023. Moody's expects the company will grow faster than the overall digital ad market as advertisers continue to diversify their budgets away from the Big Media-Tech walled garden publishers to performance-based marketers with a presence in the rapidly growing in-app mobile advertising markets. The stable outlook reflects Moody's expectations for continued growth in the in-app mobile advertising market, leading to Liftoff producing around 15%-20% organic annual revenue growth, on average, over the rating horizon with improving EBITDA margins, solid FCF and deleveraging. While Moody's anticipates that organic growth investments and potential acquisitions will be funded primarily with excess cash, to the extent incremental debt is issued to finance M&A or additional shareholder distributions, leverage reduction will be delayed. In such a scenario, Moody's expects credit metrics on a Moody's adjusted basis will be appropriately managed to return debt protection measures to levels suitable for the rating category within at least one year. Moody's expects Liftoff to maintain good liquidity, reflecting solid cash balances, full revolver availability and good FCF conversion. At March 31, 2025, the company had access to unrestricted cash balances totaling $134 million. Moody's expects the new $150 million RCF due 2030 to remain undrawn over the next 12-18 months. Excluding the $280 million debt-funded cash dividend payment planned in Q3 2025, Moody's expects FCF over the next twelve months in the range of $120 - $140 million (Moody's defines FCF as cash flow from operations less capex less dividends). While the new term loan will lack financial maintenance covenants, the new RCF will retain the same springing first-lien net leverage ratio as the existing RCF of 8.75x at 35% utilization, which Moody's do not expect to be tested. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded if organic revenue growth is sustained in the high single-digit to double-digit percentage range and EBITDA margins increase to the 45%-50% range, leading to total debt to EBITDA sustained below 6x. Upward ratings pressure would also occur if Moody's expects sustained positive free cash flow generation as measured by free cash flow to adjusted debt of at least 6.5% (all metrics calculated and adjusted by Moody's). Ratings could be downgraded if Liftoff experienced client losses, declines in organic revenue growth and/or operating margin erosion. Downward pressure on ratings could also occur if Moody's expects financial leverage will be sustained above 8x total debt to EBITDA or EBITDA growth will be insufficient to maintain free cash flow to adjusted debt of at least 1% (all metrics calculated and adjusted by Moody's). If Moody's expects the company will shift to more aggressive financial policies resulting in higher financial leverage from M&A or sizable shareholder distributions and/or a weakened liquidity profile, this could also lead to downward ratings pressure. With headquarters in Redwood City, CA, Red Planet Borrower, LLC is an independent mobile app performance-based marketing and advertising platform. The company was formed in September 2021 through the combination of Liftoff Mobile, Inc. and Vungle Inc., both portfolio holdings of Blackstone Inc., which retains majority ownership of the combined entity with General Atlantic as a minority investor. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. REGIONAL WEST: Fitch Lowers LongTerm IDR to 'B-', Outlook Negative ------------------------------------------------------------------ Fitch Ratings has downgraded Regional West Health Services and Affiliates (RWHS) Long-Term Issuer Default Rating (IDR) to 'B-' from 'BB-'. Fitch has also downgraded the rating on the series 2016A bonds issued through Hospital Authority No. 1 of Scotts Bluff County, NE, on behalf of RWHS to 'B-' from 'BB-'. Additionally, Fitch has placed RWHS's ratings on Rating Watch Negative. Entity/Debt Rating Prior ----------- ------ ----- Regional West Health Services and Affiliates (NE) LT IDR B- Downgrade BB- Regional West Health Services and Affiliates (NE) /General Revenues/1 LT LT B- Downgrade BB- The three-notch downgrade to 'B-' from 'BB-' reflects RWHS's sizeable fiscal 2024 operational losses, resulting in negative operating profitability and significant dilution of balance sheet metrics. Sizeable operating losses were driven by disruptions related to RWHS's electronic medical record (EMR) conversion in October 2024, which compounded ongoing profitability challenges. Disruptions related to the EMR conversion have also impacted financial reporting, as the organization has been unable to publish its 1Q25 financials as required in mid-May. As of FY 2024, RWHS's operating EBITDA was negative 7.2% and cash-to-adjusted debt 16.1%. According to Fitch's calculations, days cash on hand (DCOH) was 11.9 as of FYE 2024, compared to 33.7 DCOH as of FYE 2023. The Rating Watch Negative reflects the uncertainty around RWHS's operational turnaround, liquidity deterioration, and lack of timely financial reporting since the audit (December FYE). As such, there is no FY 2025 information into operational performance and operational turnaround plans, making it difficult to ascertain if performance has improved or weakened further since December. However, absent sizeable improvement to core operations and balance sheet metrics, the rating may face further pressure. SECURITY The bonds are secured by a pledge of gross revenues and a mortgage lien from the obligated group (OG), which includes only Regional West Medical Center. KEY RATING DRIVERS Revenue Defensibility - 'bbb' Dominant Market Position; Weak Service Area RWHS maintains a midrange payor mix, with combined Medicaid and self-pay revenues accounting for less than 25% of gross revenues. The organization's revenue generation may be enhanced in 2025 by CMS approval of the Nebraska Medicaid Directed Payment Program, which provides significant Medicaid funding contingent on meeting quality measures. RWHS's service area has weak demographic characteristics, including a declining population, median household income and poverty levels, which are unfavorable compared to state and national averages. However, RWHS is the largest provider within 150 miles, and no other hospital in its primary, secondary, or tertiary service areas has more than 25 licensed beds. Fitch believes RWHS's strategic location, comprehensive services, and position as a regional referral center in western Nebraska supports its midrange revenue defensibility. The health system's recent expansion efforts, including adding over 20 new providers in 2024, also aims to bolster patient volumes, particularly in oncology and cardiac services. Operating Risk - 'b' Decline in Core Operating Metrics in 4Q24 In FY 2024, RWHS's operating EBITDA was negative 7.2% and EBITDA was negative 6.4%, per Fitch calculations. The deterioration in core operating and balance sheet metrics stemmed from the organization's EPIC conversion in October 2024. The Rating Watch Negative reflects RWHS's poor performance, which, if not addressed, could threaten the organizations long-term viability. RWHS's has hired a new interim CFO and initiated turnaround efforts, but failure to improve operating performance would likely result in further rating pressure. RWHS's capital expenditures have been light, averaging 38% of depreciation over the last five fiscal years. Spending has increased recently, with investments in medical equipment and facilities, including a new orthopedic surgery robot and interventional radiology suite that support RWHS's strategic growth objectives. Capital spending is expected to remain below depreciation, allowing RWHS to rebuild its balance sheet while investing in services expected to generate additional revenue, such as a renovation of the PET/CT exam area and the purchase of a new radiation therapy machine. RWHS had an elevated average age of plant at 19 years at FYE 2023. Financial Profile - 'b' Deterioration of Balance Sheet RWHS ended fiscal 2024 with very weak financial metrics, with cash-to-adjusted debt of approximately 16.1% and 11.9 DCOH, as calculated by Fitch. This results in an asymmetric risk consideration for the financial profile as it falls below Fitch's 75 DCOH threshold. RWHS does not have a DCOH covenant. RWHS anticipates receiving funds related to recently approved Nebraska's Medicaid Directed Payments Program in 2025. Timely receipt of payments related to this program are crucial given the organization's negative flow generation and lack of balance sheet resources. Financial turnaround and EMR improvement efforts are underway, but the balance sheet remains very thin and a very limited margin of safety remains. Capacity for continued payment is vulnerable to deterioration in RWHS's business and economic environment. Asymmetric Additional Risk Considerations No asymmetric additional risk considerations were applied in this rating determination. In November 2022, John Mentgen resigned as president and CEO of RWHS. In December 2022, RWHS hired Melvin McNea as RWHS's Interim CEO. Prior to his role as Interim CEO, McNea was CEO of Great Plains Health until his retirement in 2021. In June 2023, Michael Ickowski resigned as Vice President and CFO of RWHS. Following his departure, Alan Townsend was hired as RWHS's interim CFO. In March 2024, Jeanne McKerrigan, who served as director of development for Regional West Foundation since 2021 and was the controller for RWHS, was appointed as CFO. In February 2025 Ned Resch was appointed the new President and CEO. In May 2025, Andrew Shea was hired as RWHS's new interim CFO. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Further balance sheet dilution, such that cash-to-adjusted debt drops below current levels; - Failure to improve and sustain positive operating EBITDA and EBITDA margins in the next couple of years. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - RWHS would need to significantly improve its unrestricted cash reserves to levels that result in sustained cash to adjusted debt above 100% and/or improve its operating EBITDA levels consistently above 6% to be considered for a higher rating level. PROFILE RWHS is a non-profit corporation organized as a parent company for affiliated non-profit health care organizations. The OG consists solely of Regional West Medical Center (RWMC), an acute care general hospital in Scottsbluff, NE. RWMC is licensed to operate 188 acute care beds and is a regional referral center. RWHS's other affiliated entities that are not part of the OG include: Regional West Physicians Clinic, Regional West Foundation, Regional West Village, and Regional Care. Fitch's analysis is based on the consolidated entity. Sources of Information In addition to the sources of information identified in Fitch's applicable criteria specified below, this action was informed by information from DIVER by Solve. 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. REVOLOK USA: Hires Latham Luna Eden as Bankruptcy Counsel --------------------------------------------------------- Revolok USA LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire Latham, Luna, Eden & Beaudine, LLP as bankruptcy counsel. The firm's services include: (a) advising as to the Debtor's rights and duties in this case; (b) preparing pleadings related to this case, including a disclosure statement and plan of reorganization; and (c) taking any and all other necessary action incident to the proper preservation and administration of this estate. The firm will be paid at these rates: Attorneys $500 per hour Paralegals $105 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Prior to the commencement of the bankruptcy case, the Debtor paid an advance fee of $28,738 for services and expenses to be incurred in connection with creditor negotiations, litigation, preparation of the bankruptcy filing prior to the Chapter 11 Bankruptcy filing. Daniel A. Velasquez, Esq., a partner at Latham, Luna, Eden & Beaudine, LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Daniel A. Velasquez, Esq. Latham, Luna, Eden & Beaudine, LLP 201 S. Orange Ave., Suite 1400 Orlando, FL 32801 Telephone: (407) 481-5800 Facsimile: (407) 481-5801 About Revolok USA LLC Revolok USA LLC manufactures load-securing equipment for the transportation industry, including powered chain binders and torque multiplier tools. The Company operates from Tampa, Florida, and sells its products directly to commercial trucking and logistics clients. Revolok USA LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04731) on July 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Roberta A. Colton handles the case. The Debtors are represented by Daniel A. Velasquez, Esq. at LATHAM LUNA EDEN & BEAUDINE LLP. RIO DEL PILAR: Mark Sharf Named Subchapter V Trustee ---------------------------------------------------- The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a practicing attorney in Los Angeles, as Subchapter V trustee for Rio Del Pilar, LLC. Mr. Sharf will charge $660 per hour for his services as Subchapter V trustee and will seek reimbursement for work-related expenses incurred. Mr. Sharf declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Mark Sharf, Esq. 6080 Center Drive, 6th Floor Los Angeles, CA 90045 Telephone: (323) 612-0202 Email: mark@sharflaw.com About Rio Del Pilar Rio Del Pilar, LLC operates in cattle ranching and farming. It is based in Rio Dell, California, and its activities involve livestock and agricultural land use. Rio Del Pilar sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 25-10467) on July 31, 2025, with $1 million to $10 million in assets and $500,000 to $1 million in liabilities. Christopher Cortazar, special manager, signed the petition. Andy Warshaw, Esq., at DiMarco Warshaw, APLC represents the Debtor as legal counsel. RITE AID: Bid to Enforce Sale Order Granted in Part --------------------------------------------------- The Honorable Michael B. Kaplan of the United States Bankruptcy Court for the District of New Jersey granted in part New Rite Aid, LLC's emergency motion to enforce the sale order and compel performance by CVS Pharmacy, Inc. under the CVS Asset Purchase Agreement. On May 15, 2025, CVS entered into an asset purchase agreement to acquire certain assets associated with Rite Aid's retail locations in the Pacific Northwest region, as well as separate asset purchase agreements to acquire certain assets associated with Rite Aid's retail locations in Pennsylvania, New York, California and other states. On May 21, 2025, the Bankruptcy Court approved the APAs via a Sale Order. The PNW APA includes a "Lookback Period" where the price paid by CVS for the various assets -- including the RX Assets -- can be adjusted. The thrust of the disputes between the parties center upon the interpretation and methodological application of two provisions/phrases appearing in Section 2.3(b)(i) of the PNW APA and comparable language in the other referenced APAs: (1) for the four (4) calendar weeks (ending on Saturday and excluding nationally recognized holiday weeks) immediately prior to such certification (the "Holiday Exclusion Provision"), and (2) prescription filled (the "Prescription Filled Phrase"). These phrases come into play as part of the purchase price adjustment process under the APAs. CVS is entitled to a purchase price adjustment if attrition at any store with respect to filled prescriptions is greater than 5%. Pertinently, with respect to the Holiday Exclusion Provision, Debtors have taken the position that the language is clear and that both parties have long understood and agreed that if the Lookback Period includes a week containing a national holiday, that week's data is excluded from the Lookback Period, and replaced with data from the first preceding non-holiday week. In contrast, CVS likewise contends that the language of the provision is clear in that weeks containing national holidays are to be excluded from the Lookback Period, but there should be no additional weekly data added to the Lookback Period calculation. In this regard, CVS notes that there is no language in the APA which calls for replacement or substitution of weekly prescription filled data. As to the Prescription Filled Phrase, the parties again are divided upon the proper construction. Debtors submit that the plain words of the contract -- as well as the parties' course of performance over many years -- make clear that the words "prescriptions filled" mean the completed process of actually filling a prescription, the final step of which is actually dispensing the prescribed medication to the patient at point of sale. Again, in marked contrast, CVS contends that "prescriptions filled" refers to a point in time prior to the actual dispensing of the prescribed medication to the patient, and that the plaint text of the APA confirms that calculations arising under the APAs should be based on the number of prescriptions physically filled and placed on the shelves by Rite Aid pharmacists, not prescriptions sold at Rite Aid stores. The Court finds that with respect to the Holiday Exclusion Provisions, the interpretation and application espoused by Rite Aid best reflects the intent and expectations of the parties. The Court further finds that the acceptance by all parties with respect to Rite Aid's interpretation and application of the phrase "prescription filled" is reflected in several email exchanges between the parties in June 2025, during these chapter 11 cases and after the APAs at issue in this case were signed. The unrebutted extrinsic evidence placed before the Court confirms that the parties negotiated and ultimately entered into the APAs at issue in this case, with a clear understanding that they would continue to treat and calculate "prescriptions filled" in a manner that is consistent with their prior courses of dealing and performance. According to the Court, the interpretation advocated by Rite Aid with respect to the Prescription Filled Phrase is correct and should govern the transaction. The balance of unresolved issues will be addressed at a scheduled hearing on Aug. 14, 2025. A copy of the Court's Opinion dated July 28, 2025, is available at https://urlcurt.com/u?l=mNqBKK from PacerMonitor.com. About Rite Aid Rite Aid is a full-service pharmacy committed to improving health outcomes. Rite Aid is defining the modern pharmacy by meeting customer needs with a wide range of solutions that offer convenience, including retail and delivery pharmacy, as well as services offered through the Company's wholly owned subsidiary Bartell Drugs. On the Web: http://www.riteaid.com/ Rite Aid and certain of its subsidiaries previously filed for chapter 11 bankruptcy in October 2023 and emerged from bankruptcy in August 2024. On May 5, 2025, New Rite Aid, LLC and its subsidiaries, including Rite Aid Corporation, commenced voluntary Chapter 11 proceedings (Bankr. D.N.J. Lead Case No. 25-14861). As of the 2025 bankruptcy filing date, Rite Aid operates 1,277 stores and 3 distribution centers in 15 states and employs approximately 24,500 people. Rite Aid is using the Chapter 11 process to pursue a sale of its prescriptions, pharmacy and front-end inventory, and other assets. The cases are being administered by the Honorable Michael B. Kaplan. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor, Guggenheim Securities, LLC is serving as investment banker, and Alvarez & Marsal is serving as financial advisor to the Company. Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor to the Company. Kroll is the claims agent and maintains the page https://restructuring.ra.kroll.com/RiteAid2025 Bank of America, N.A., as DIP Agent, is represented by lawyers at Greenberg Traurig, LLP; and Choate Hall & Stewart LLP. ROCKET COMPANIES:S&P Assigns 'BB' Rating on Obligor Exchange Notes ------------------------------------------------------------------ S&P Global Ratings rated Rocket Companies Inc. (BB/Positive/--) 's proposed senior notes of up to $1.75 billion 'BB', in line with our ratings on the company and its existing unsecured debt. S&P also assigned a recovery rating of '3' to the proposed notes, reflecting its expectations of meaningful recovery (50%-70%; rounded estimate: 50%) for lenders in the event of a payment default. The company is offering to exchange the new notes for Mr. Cooper Group Inc.'s (Cooper's; B/Watch Pos/--) $750 million notes due 2029 and $1.0 billion notes due 2032 when its acquisition of Cooper closes, expected in fourth-quarter 2025. The notes will be unconditionally guaranteed by Rocket's main operating subsidiary, Rocket Mortgage LLC Also, in connection with the acquisition, Rocket launched a tender offer for Cooper's $650 million senior notes due 2030 and $600 million senior notes due 2031, and previously said it would redeem Cooper's senior notes due 2026, 2027, and 2028. S&P expects Rocket to finance the tender offer and debt redemptions when the acquisition closes with the proceeds from $4 billion of notes it issued in June 2025. Rocket set an early deadline of Aug. 15 and expiration date of Sept. 2 for both the exchange and tender offers. Debt holders who accept the offers by the early deadline would receive an additional consideration on top of the par value of their notes. If the acquisition unexpectedly fails to close, Cooper's debt would remain outstanding, and we would expect Rocket to repay the $4 billion of notes it issued in June. S&P said, "We expect the acquisition will initially add moderately to Rocket's leverage--as measured by debt to EBITDA--since Cooper has operated with more leverage than Rocket. "However, the positive outlook on our ratings on Rocket reflects our view that the acquisition has the potential to significantly improve its diversification, market position, earnings, and stability. We think the acquisition will reduce Rocket's dependence on origination volumes, particularly for refinancing, likely leading to greater revenue and EBITDA stability. "We also placed our ratings on Mr. Cooper and its debt on CreditWatch with positive implications on April 1, 2025, shortly after the acquisition was announced." ROCKY MOUNTAIN: Court Extends Cash Collateral Access Until Oct. 31 ------------------------------------------------------------------ Rocky Mountain Imports, LLC received a three-month extension from the U.S. Bankruptcy Court for the District of Colorado to use cash collateral. The court's order extended the Debtor's authority to access cash collateral until Oct. 31 to fund business operations. The court previously approved the Debtor's use of cash collateral on a final basis. The final order will remain in full force and effect. As of the petition date, the Debtor's assets include cash on hand, receivables and inventory. Live Oak Banking Company and Peak Imports, Inc. are the creditors, which assert security interests in the Debtor's cash. Live Oak perfected a lien on the Debtor's assets including accounts and inventory by filing a UCC-1 financing statement with the CO Secretary of State on June 11, 2021. The Debtor believes it owes the secured creditor 988,328, plus accruing interest. Meanwhile, Peak Imports perfected a lien on the assets including proceeds, receipts and accounts receivable by filing a UCC-1 financing statement with the CO Secretary of State on July 7, 2021. The Debtor estimated Peak Imports' claim at $220,000. Given the amount of Live Oak's claim, Peak Imports is likely fully unsecured. About Rocky Mountain Imports Rocky Mountain Imports, LLC, doing business as Pikes Peak Rock Shop, is a direct importer and wholesale distributor of minerals, fossils and jewelry. Its customers include national parks, museums, gift shops, multi-store chains, science and nature shops, rock & gem shops, trading posts and local rock-hounds. The company directly imports from Brazil, Peru, China, Morocco, and India, and distributes its products to businesses across the U.S. and Canada. Rocky Mountain Imports sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 25-10311) on January 21, 2025, with $96,089 in assets and $1,800,938 in liabilities. Gary Greenwald, managing member of Rocky Mountain Imports, signed the petition. Judge Michael E. Romero oversees the case. Kevin S. Neiman, Esq., at the Law Offices of Kevin S. Neiman, PC is the Debtor's bankruptcy counsel. Live Oak Banking Company, as secured creditor, is represented by: Christopher J. Harayda, Esq. Stinson LLP 50 South Sixth Street, Suite 2600 Minneapolis, MN 55402 Telephone: (612) 335-1500 Facsimile: (612) 335-1657 Email: cj.harayda@stinson.com SALEM POINTE: Plan Exclusivity Period Extended to Dec. 31 --------------------------------------------------------- Judge Suzanne H. Bauknight of the U.S. Bankruptcy Court for the District of Tennessee extended Salem Pointe Capital, LLC's exclusive periods to file a plan of reorganization and obtain acceptance thereof to December 31, 2025 and April 30, 2026, respectively. As shared by Troubled Company Reporter, on July 9, the Court held a status conference regarding any agreement among Salem Pointe Capital, LLC, the United State Trustee, Rarity Bay Partners, and Rarity Bay Community Association, Inc., as to the appointment of an examiner. The Debtor explains that any plan of reorganization and disclosure statement the Debtor files in this case must await the outcome of the examiner's investigation and issuance of a report. Parties in interest will likely want to consider the examiner's findings before evaluating the Debtor's proposed plan and disclosure statement. The Debtor will want the plan to address issues identified by the examiner's report, if any. The Debtor claims that the ability of the Debtor to propose an accurate disclosure statement and confirmable plan of reorganization pending receipt of the examiner's report is therefore impractical, if not impossible. The Debtor will likely be able to file a plan and disclosure statement within 30 days of submission of the examiner's report. Salem Pointe Capital, LLC is represented by: Brenda G. Brooks, Esq. James R. Moore, Esq. Moore & Brooks 6223 Highland Place Way, Ste. 102 Knoxville, TN 37919 Telephone: (865) 450-5455 Facsimile: (865) 622-8865 Email: bbrooks@moore-brooks.com About Salem Pointe Capital Salem Pointe Capital, LLC, is a financial services company that typically focuses on investment and capital management. Its operations include providing financing solutions, investment opportunities, and asset management to various sectors. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 24-31702) on Sept. 29, 2024, with $10 million to $50 million in both assets and liabilities. Judge Suzanne H. Bauknight oversees the case. The Debtor is represented by James R. Moore, Esq. at Moore & Brooks. SAMYS OC: Gets Extension to Access Cash Collateral -------------------------------------------------- Samys OC, LLC received fifth interim approval from the U.S. Bankruptcy Court for the District of Kansas to use cash collateral through August 30. The fifth interim order authorized the Debtor to use cash collateral to pay operating expenses set forth in its budget, with a variance of 10%. The Debtor projects total operational expenses of $729,542.40 for August. As adequate protection for the Debtor's use of their cash collateral, secured creditors Dream First Bank and the U.S. Small Business Administration were granted replacement liens on all post-petition cash collateral and other property of the Debtor to the same extent and with the same priority as their pre-bankruptcy liens. As additional protection, Dream First Bank will continue to receive a monthly payment of $59,913.90. The interim order provides for a carveout of up to $125,000 for attorney fees and expenses, and up to $25,000 for other professional fees and disbursements. A final hearing is scheduled for August 21. About Samys OC LLC Samys OC, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Kansas Case No. 24-11166) on Nov. 14, 2024, listing up to $50,000 in assets and $10 million to $50 million in liabilities. The petition was signed by Amro M. Samy as managing member. Judge Mitchell L Herren presides over the case. Lora J. Smith, Esq., at Hinkle Law Firm is the Debtor's bankruptcy counsel. Dream First Bank, as secured creditor, is represented by: Scott M. Hill, Esq. Hite, Fanning & Honeyman, LLP 100 N. Broadway, Ste. 950 Wichita, KS 67202-2216 Telephone: (316) 265-7741 Facsimile: (316) 267-7803 hill@hitefanning.com SHIELDS NURSING: PCO Reports Resident Care Complaints ----------------------------------------------------- Blanca Castro, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Northern District of California her report regarding the quality of patient care provided at Shields Nursing Centers, Inc.'s skilled nursing facilities. The local Long-Term Care Ombudsman (LTCO) visited Shields Richmond Nursing Center on May 14, June 6, July 2 and 28. LTCO representatives met with multiple residents during their site visits to follow up on issues identified during previous visits, specifically, delays in staff response to call lights and concerns about food quality. Residents noted improvements in call-light response times and LTCO representatives did not observe any delays in call lights being answered during the four on-site visits. The LTCO visited the facility during lunchtime and observed an adequate selection of nutritionally varied food. Each resident interviewed was satisfied with the meal selection and the quality of the food being served. Two residents reported the facility has a new cook and noted an improvement in the quality of the food being offered. There were no complaints or unsafe discharges reported during the reporting period. The LTCO visited Shields Nursing Center, El Cerrito, on May 14, June 5, June 30 and July 28. The LTCO representatives met with multiple residents during the four on-site facility visits. LTCO received no complaints received during any of the visits and resident quality of care appears to be adequate. There were no reports of unsafe discharges during the reporting period. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=IbBZEE from PacerMonitor.com. The ombudsman may be reached at: Blanca E. Castro 2880 Gateway Oaks Drive, Suite 200, Sacramento, CA 95833 Phone: (916) 928-2500 Email: Blanca.Castro@aging.ca.gov About Shields Nursing Centers Shields Nursing Centers, Inc. owns and operates a skilled nursing facility in Hercules, Calif., which offers rehabilitation programs including physical, occupational and speech therapy. Shields Nursing Centers filed its voluntary Chapter 11 petition (Bankr. N.D. Calif. Case No. 23-41201) on Sept. 20, 2023, with $1,726,970 in assets and $13,504,710 in liabilities. Judge Charles Novack oversees the case. The Law Offices of Michael Jay Berger serves as the Debtor's bankruptcy counsel. Blanca E. Castro is the patient care ombudsman appointed in the Debtor's Chapter 11 case. SILVERROCK DEVELOPMENT: Seeks to Extend Plan Exclusivity to Dec. 1 ------------------------------------------------------------------ SilverRock Development Company, and affiliates asked the U.S. Bankruptcy Court for the District of Delaware to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to December 1, 2025 and January 31, 2026, respectively. This is the Debtors' third request for an extension of the Exclusive Periods. The Debtors submit that cause exists to further extend the Exclusive Periods and that the following factors, among others, weigh in favor of such extension: * The Size and Complexity of these Chapter 11 Cases. These chapter 11 cases are large and complex. The Debtors have spent seven months of these chapter 11 cases conducting the post petition sale process, which efforts have included (i) obtaining entry of the Bid Procedures Order, (ii) selecting a Stalking Horse Bidder (iii) qualifying additional Qualified Bidders, and (iv) obtaining entry of the Auction Procedures Order. The Debtors are now poised to conduct the Auction with the goal of obtaining the highest or otherwise best offer available for their Assets from the Qualified Bidders. * A Further Extension of the Exclusive Periods Will Not Prejudice Creditors. The extension of the Exclusive Periods requested by this Motion is requested to give the Debtors and their advisors time to devote their attention to the sale process up to and including the Outside Sale Closing Date, whereupon the Debtors and their advisors will be able to devote their attention to any chapter 11 plan in these cases. Thus, the Debtors' request for an extension of the Exclusivity Periods is not being made for the impermissible purpose of pressuring creditors to agree to a plan of reorganization. * The Debtors are Paying Their Debts as They Come Due. The requested extension of the Exclusive Periods is also appropriate because the Debtors continue to timely pay their undisputed post-petition obligations. The requested extension of the Exclusive Periods will afford the Debtors a meaningful opportunity to continue negotiations with key parties in order to bring the sale process to a successful conclusion on or before the Outside Sale Closing Date and to attend to various other ongoing matters in these chapter 11 cases without prejudice to parties in interest. * Additional Factors Exist to Support an Extension of the Debtors' Exclusive Periods. If the Court were to deny the Debtors' request for an extension of the Exclusive Periods, upon the expiration of the Exclusive Filing Period, any party in interest would be free to propose a chapter 11 plan for the Debtors and solicit acceptances thereof. Such a ruling could foster a chaotic environment for the Debtors and their estates, significantly delay the administration of these chapter 11 cases and jeopardize the successful conclusion of the Debtors' sale process, and otherwise impair the Debtors' ability to prosecute these chapter 11 cases and confirm a plan without any corresponding benefit to the Debtors' estates and creditors. Counsel to the Debtors: ARMSTRONG TEASDALE LLP Jonathan M. Stemerman, Esq. Eric M. Sutty, Esq. 1007 North Market Street, Third Floor Wilmington, Delaware 19801 Telephone: (302) 416-9670 Email: jstemerman@atllp.com esutty@atllp.com -and- Victor A. Vilaplana, Esq. 823 La Jolla Rancho Rd. La Jolla, CA 92037 Telephone: (619) 840-4130 Email: vavilaplana@g -and- Benjamin M. Carson, Esq. 5965 Village Way, STE E105 San Diego, CA 92130 Telephone: (858) 255-4529 Email: ben@benjamincarsonlaw.com About SilverRock Development Company SilverRock Development Company, LLC, is a San Diego, Calif.-based company primarily engaged in renting and leasing real estate properties. SilverRock filed Chapter 11 petition (Bankr. D. Del. Lead Case No. 24-11647) on Aug. 5, 2024, with $100 million to $500 million in both assets and liabilities. Robert S. Green, Jr., chief executive officer, signed the petition. Judge Mary F. Walrath handles the case. The Debtor is represented by Jonathan M. Stemerman, Esq., at Armstrong Teasdale. SIRVA WORLDWIDE: Moody's Cuts CFR to 'Caa2', Outlook Stable ----------------------------------------------------------- Moody's Ratings downgraded SIRVA Worldwide, Inc.'s (SIRVA) corporate family rating to Caa2 from Caa1 and its probability of default rating to Caa2-PD from Caa1-PD. At the same time, Moody's affirmed SIRVA's backed senior secured first lien delayed-draw superpriority term loan due 2029 at B2 and downgraded its backed senior secured first lien takeback term loan due 2029 to Caa3 from Caa2. The outlook is stable. The ratings downgrades are attributed to Moody's reduced revenue and earnings expectations for SIRVA in the next 12-18 months as corporate relocation and moving volumes remain soft after weaker than expected revenue and earnings in 2024. Moody's expects SIRVA's lower earnings and increasing debt, driven by the company's takeback term loan's pay in kind (PIK) interest component, will further weigh on SIRVA's debt leverage metrics. Moody's expects SIRVA's debt/EBITDA to remain above 10x (excluding mortgage warehouse) over the next 12 to 18 months. The stable outlook reflects Moody's views that SIRVA will reverse revenue and earnings declines, continue to maintain access to cash and avoid a covenant default over the next 12-18 months. ESG considerations were a key driver of the rating action, reflecting very high governance risks from the company's tolerance for a sustained, highly levered capital structure and its inconsistent track record of meeting operating and financial guidance targets since its restructuring in 2024. RATINGS RATIONALE SIRVA's Caa2 CFR reflects the company's declining revenue and modest profitability (relative to gross revenues), a very highly levered capital structure, and corporate governance risks related to the parent company SIRVA, Inc.'s aggressive financial strategies, and tolerance for high debt leverage. Moody's expects continued soft demand for corporate relocation and moving services to keep the company's earnings flat in fiscal year 2025 from fiscal year 2024. Additional credit risks stem from the potential for cash flow deficits over the next 12-15 months. All financial metrics cited reflect Moody's standard adjustments. Debt includes around $90 million of capitalized interest as of March 31, 2025. SIRVA is exposed to housing market cyclicality and volatility. High interest rates have led to diminished home sale activity and low relocation and household moving activity. Moody's anticipates that demand for SIRVA's services will remain muted until interest rates decline and stimulate home sale activity. SIRVA is also exposed to housing market pricing due to the nature of certain contracts the company has with clients wherein SIRVA takes on home selling and purchasing risk for relocating employees. These risks are somewhat offset by the company's global market presence and integrated service offerings, which provide a competitive advantage to support a broad, diverse customer base, and maintain high client retention rates above 95%. Moody's considers SIRVA's liquidity profile as limited but still adequate, supported by a $78 million cash balance as of March 31, 2025. Moody's expects the company to realize around break-even free cash flow in 2025. SIRVA has $15 million of remaining capacity under its delayed-draw superpriority term loan as of March 31, 2025. Moody's anticipates that the company may not remain in compliance with its financial covenants over the next 12-15 months, including its maximum senior secured gross leverage ratio of 6x (stepping down to 5.75x on June 30, 2026). Under the delayed-draw superpriority term loan, SIRVA, Inc. must also maintain $10 million minimum domestic total liquidity and $70 million minimum total company liquidity. Through SIRVA Relocation Credit, LLC (SRC), a subsidiary of SIRVA Inc., the company has a $345 million accounts receivable securitization facility expiring in July 2027 that has approximately $145 million in availability as of June 30, 2025. The accounts receivable securitization facility is used for pass-through expenses related to the relocation segment. SRC transfers its ownership in all of its receivables on a non-recourse basis to a third party financial institution in exchange for a cash advance and a securitization receivable. Additionally, subsidiary SIRVA Mortgage (SM) obtains short-term mortgage warehouse facilities to fund mortgages for clients until the underlying properties are sold. SIRVA also sells non-mortgage receivables into the securitization facility. Continued access to these facilities are key to SIRVA's ability to provide certain services to its customers. SIRVA's delayed-draw superpriority term loan is rated B2, which is three notches above the Caa2 CFR, reflecting its priority lien on collateral relative to the takeback loan, which is rated Caa3, and secured on a junior lien basis. Both debt instrument ratings reflect a one notch downgrade override to Moody's LGD model-implied outcome. The override reflects the uncertainty of loss absorption support from the company's large, unsecured trade payables in a default scenario. Moody's do not include the capitalized interest in Moody's hierarchy of claims at default. The parent company's SRC and SM subsidiaries are special purpose vehicles to be the borrowers of the securitization facility and the warehouse lines. As these facilities are non-recourse to SIRVA, they are not considered in SIRVA's hierarchy of claims at default. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if SIRVA can generate meaningful revenue and earnings growth from improved relocation and moving volumes such that the company's debt to EBITDA (excluding securitization and mortgage warehouse debt based on Moody's calculations and adjustments) shows sustained and material improvement. The ratings could also be upgraded if the company consistently generates positive free cash flow. The ratings could be downgraded if SIRVA's revenue or profitability undergo further declines, leading us to anticipate a higher risk of default or expect the recovery prospects in the event of default could diminish. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. SIRVA's parent company, SIRVA, Inc., headquartered in Oakbrook Terrace, Illinois, provides outsourced relocation and moving services to the corporate, consumer, and government sectors. Following the 2024 debt exchange, the company's ownership group is led by certain credit funds and accounts managed by KKR Credit Advisors LLC, Evolution Credit Partners, BlackRock Financial Management, Inc., and Indaba Capital Management, LP. Moody's expects the company to generate revenue of about $1.5 billion in 2025. SLATE GAP: Beverly Brister Named Subchapter V Trustee ----------------------------------------------------- The Acting U.S. Trustee for Region 13 appointed Beverly Brister, Esq., a practicing attorney in Benton, Ark., as Subchapter V trustee for Slate Gap Signs, LLC. Ms. Brister will be paid an hourly fee of $360 for her services as Subchapter V trustee. Should travel be required outside of Saline or Pulaski Counties, the Subchapter V trustee will seek a compensation rate of $100 per hour for actual travel time incurred. Ms. Brister declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Beverly I. Brister, Esq. Attorney at Law 212 W. Sevier Benton, AR 72015 Phone: 501-778-2100 Email: bibristerlaw@gmail.com About Slate Gap Signs Slate Gap Signs, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. W.D. Ark. Case No. 25-71331) on July 31, 2025, with up to $50,000 in assets and liabilities. Judge Bianca M. Rucker presides over the case. Stanley V. Bond, Esq., at Bond Law Office represents the Debtor as bankruptcy counsel. SOUTHWEST FIRE: Daniel Behles Named Subchapter V Trustee -------------------------------------------------------- The U.S. Trustee for Region 20 appointed Daniel Behles, Esq., at 709 Consulting LLC as Subchapter V trustee for Southwest Fire Defense, LLC. Mr. Behles will be paid an hourly fee of $300 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Behles declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Daniel Behles, Esq. 709 Consulting LLC 709 El Alhambra Circle NW Los Ranchos, NM 87107 (505) 238-0208 Email: djbehles@gmail.com About Southwest Fire Defense LLC Southwest Fire Defense, LLC provides emergency same-day hazard tree removal, tree trimming, stump grinding, defensible space creation and tree risk assessment services in the Santa Fe, New Mexico area. Founded in 2014 by former firefighter Daniel A. Martinez, the company offers free estimates. Southwest Fire Defense filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.N.M. Case No. 25-10924) on July 28, 2025. In its petition, the Debtor reported total assets of $706,464 and total liabilities of $1,530,318. Judge Robert H. Jacobvitz handles the case. The Debtor is represented by Chris Gatton, Esq., at Gatton & Associates, P.C. SPORTS LEADERSHIP: S&P Assigns 'BB+' Rating on 2025A&B Rev. Bonds ----------------------------------------------------------------- S&P Global Ratings assigned its 'BB+' rating to the Public Finance Authority, Nev.'s $49.5 million series 2025A (tax-exempt) and $435,000 series 2025B (taxable) charter school revenue bonds, issued for Sports Leadership and Management Academy of Nevada (SLAM). The outlook is stable. S&P said, "We analyzed the school's environmental, social, and governance factors and consider them neutral in our credit rating analysis. "The stable outlook reflects our expectation that SLAM will maintain its healthy market position, including meeting enrollment projections and improving academic performance at its elementary campus. Although we expect some moderation in operating performance in fiscal 2025 relative to fiscal 2024, we anticipate MADS coverage, liquidity, and debt burden will remain consistent with the rating level. "We could take a negative rating action if enrollment or demand unexpectedly deteriorates, or if financial performance weakens, leading to a trend of lower lease-adjusted MADS coverage or liquidity levels. We could also lower the rating if the school issues additional debt that pressures financial metrics, although this is not expected at this time. "We could consider a positive rating action should SLAM improve its financial metrics, generating stronger lease-adjusted MADS coverage and liquidity levels consistent with those of higher-rated peers and medians, while maintaining its healthy enrollment and demand profile." STONE CREST: Tamara Miles Ogier Named Subchapter V Trustee ---------------------------------------------------------- The U.S. Trustee for Region 21 appointed Tamara Miles Ogier, Esq., at Ogier, Rothschild & Rosenfeld, PC as Subchapter V trustee for Stone Crest Contractors, LLC. Ms. Ogier will be paid an hourly fee of $450 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Ogier declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Tamara Miles Ogier, Esq. Ogier, Rothschild & Rosenfeld, PC P.O. Box 1547 Decatur, GA 30031 Phone: (404) 525-4000 About Stone Crest Contractors Stone Crest Contractors, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-58506) on July 30, 2025. SUMMIT PROTECTIVE: Lisa Holder Named Subchapter V Trustee --------------------------------------------------------- The U.S. Trustee for Region 17 appointed Lisa Holder, Esq., a practicing attorney in Bakersfield, Calif., as Subchapter V trustee for Summit Protective & Investigative Services, Inc. Ms. Holder will be paid an hourly fee of $300 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Holder declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Lisa Holder, Esq. 3710 Earnhardt Drive Bakersfield, CA 93306 Phone: (661) 205-2385 Email: lholder@lnhpc.com About Summit Protective & Investigative Services Summit Protective & Investigative Services, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Calif. Case No. 25-23819) on July 24, 2025, with $50,001 to $100,000 in assets and $100,001 to $500,000 in liabilities. Judge Christopher M. Klein presides over the case. Michael Jay Berger, Esq., represents the Debtor as legal counsel. SUNATION ENERGY: Hires CBIZ CPAs as Auditor After UHY Exit ---------------------------------------------------------- SUNation Energy Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Audit Committee of the Board of Directors dismissed UHY LLP as the Company's independent registered public accounting firm. During the Company's two most recent fiscal years ended December 31, 2023 and December 31, 2024 and during the subsequent interim period from January 1, 2025 through July 15, 2025: (i) there were no disagreements with UHY on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures that, if not resolved to UHY's satisfaction, would have caused UHY to make reference to the subject matter of the disagreement in connection with its reports and (ii) there were no "reportable events" as defined in Item 304(a)(1)(v) of Regulation S-K. The audit reports of UHY on the consolidated financial statements of the Company for each of the two most recent fiscal years ended December 31, 2023 and December 31, 2024 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. Following UHY's dismissal, the Audit Committee approved the engagement of CBIZ CPAs P.C. as its new independent registered public accounting firm. CBIZ's appointment will be for the Company's fiscal year ending December 31, 2025, and related interim periods. During the Company's two most recent fiscal years ended December 31, 2024 and December 31, 2023, and for the subsequent interim period through July 15, 2025, neither the Company nor anyone on its behalf consulted CBIZ regarding: (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the consolidated financial statements of the Company, in connection with which neither a written report nor oral advice was provided to the Company that CBIZ concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a disagreement as defined in Item 304(a)(1)(iv) of Regulation S-K or a reportable event as described in Item 304(a)(1)(v) of Regulation S-K. About SUNation Energy SUNation Energy Inc., formerly known as Pineapple Energy Inc., is focused on growing leading local and regional solar, storage, and energy services companies nationwide. Melville, N.Y.-based UHY LLP, the Company's auditor since 2023, issued a "going concern" qualification in its report dated April 15, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company's current financial position and forecasted future cash flows for 12 months beyond the date of issuance of the financial statements indicate substantial doubt around the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $45.7 million in total assets, $37.2 million in total liabilities, and a total stockholders' equity of $8.5 million. SUNNOVA ENERGY: McDowell Wins Bid to Withdraw as Counsel -------------------------------------------------------- The Honorable Gonzalo P. Curiel of the United States District Court for the Southern District of California granted the motion of McDowell Hetherington LLP (MH) to withdraw as Sunnova Energy Corporation's counsel in the case captioned as CLARENCE WEILER, individually, and as co-trustee of the WEILER FAMILY TRUST DATED June 16, 1993, Plaintiff, v. SUNNOVA ENERGY CORPORATION; and DOES 1 to 10, Defendants, Case No.: 3:25-cv-00130-GPC-KSC (S.D. Cal.). On Jan. 21, 2025, Sunnova removed this action, which alleges financial elder abuse relating to Sunnova's sale of a solar system, to federal court. This case is currently stayed pending the completion of final and binding arbitration between the parties. On June 20, 2025, amid the stay, MH moved to withdraw as counsel on the following grounds: (1) Sunnova consents to the withdrawal and (2) Sunnova failed to fulfill its obligations to MH regarding the law firm's services under Rule 1.16(b)(5) of the California Rules of Professional Conduct. MH did not specify what material term of the agreement Sunnova breached. The Court finds in the present case, good cause for withdrawal exists. While MH does not expand on the specifics of Sunnova's breach, the Court acknowledges that the details may be covered by the attorney-client privilege. The attorney-client relationship is clearly strained, and Sunnova has not offered any objection to this characterization of the relationship. Further, the Court finds MH's withdrawal would not unduly prejudice the parties, harm the administration of justice, or unduly delay the resolution of this case. According to the Court, Plaintiff is not prejudiced as he filed a notice indicating he does not oppose the withdrawal. Moreover, the case is currently stayed pending arbitration and Sunnova's bankruptcy proceedings. Thus, with no pending matters before the Court, MH's withdrawal would not harm the administration of justice or unduly delay the case. But MH's withdrawal would leave Sunnova, a corporation, without counsel. Because the Court stayed the case, this matter cannot proceed until the arbitration or the bankruptcy proceedings (or both) have been completed. Further, there are no upcoming hearings or other dates scheduled in this case. Therefore, Defendant is not prejudiced and has ample time to engage replacement counsel before substantive litigation begins in this case. Sunnova must obtain substitute counsel within 45 days of this Order. A copy of the Court's Order dated July 28, 2025, is available at https://urlcurt.com/u?l=P4mzM4 from PacerMonitor.com. About Sunnova Energy Sunnova Energy International Inc. (NYSE: NOVA) is an industry-leading adaptive energy services company focused on making clean energy more accessible, reliable, and affordable for homeowners and businesses. Through its adaptive energy platform, Sunnova provides a better energy service at a better price to deliver its mission of powering energy independence. Sunnova Energy sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90160) on June 8, 2025. In its petition, the Debto reports estimated assets and liabilities between $10 billion and $50 billion each. The Debtor is represented by Jason Gary Cohen, Esq. at Bracewell LLP. THRASIO LLC: Moody's Withdraws 'Ca' Corporate Family Rating ----------------------------------------------------------- Moody's Ratings has withdrawn all credit ratings of Thrasio, LLC (Thrasio) including the Ca Corporate Family Rating and Ca-PD Probability of Default Rating. Moody's have also withdrawn the Caa3 rating on Thrasio's senior secured first lien first out term loan (FOTL) due June 2029 and the Ca rating on the company's senior secured first lien second out term loan (SOTL) due June 2029. Prior to the withdrawal, the rating outlook was negative. RATINGS RATIONALE Moody's have decided to withdraw the rating(s) following a review of the issuer's request to withdraw its rating(s). COMPANY PROFILE Thrasio, LLC, founded in 2018 and headquartered in Walpole, MA, is an operator of private third-party Amazon brands with a diverse catalog of products across home, cleaning, outdoor, and other categories. The company's portfolio was built through multiple acquisitions of brands and their underlying businesses that often consisted of limited or singular products. The company estimates its current catalog includes about 40 brands. Thrasio filed for Chapter 11 in February 2024 and emerged from bankruptcy in June 2024. Thrasio generated approximately $530 million of revenue for the 12 month period ending March 31, 2025. UMAPM HOLDING: Court Extends Cash Collateral Access to Dec. 31 -------------------------------------------------------------- UMAPM Holding Company, LLC received a five-month extension from the U.S. Bankruptcy Court for the District of Minnesota to use the cash collateral of its secured creditors. The court's order extended the Debtor's authority to use the cash collateral of Choice Financial Group and other secured creditors until December 31 or until confirmation of a Subchapter V plan, whichever comes first. The order granted secured creditors replacement liens on assets acquired by the Debtor after its Chapter 11 filing as adequate protection for the use of their cash collateral. The replacement liens do not apply to any pre-bankruptcy assets of the Debtor or to any Chapter 5 claims. As additional protection to secured creditors, the Debtor agreed to keep its assets insured. About UMAPM Holding Company UMAPM Holding Company, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.M. Case No. 24-43262) on November 26, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Steven Nosek serves as Subchapter V trustee. Judge Katherine A Constantine oversees the case. Karl J. Johnson, Esq., and Alexander J. Beeby, Esq., at Sapientia Law Group serve as the Debtor's bankruptcy counsel. Choice Financial Group, as secured creditor, is represented by: Amy J. Swedberg, Esq. Michael A. Rosow, Esq. Maslon, LLP 225 South Sixth Street, Suite 2900 Minneapolis, MN 55402 Telephone: (612) 672-8367 amy.swedberg@maslon.com michael.rosow@maslon.com VIA MIZNER: Plan Exclusivity Period Extended to Aug. 28 ------------------------------------------------------- Judge Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida extended Via Mizner Owner I, LLC ("VMO") and Via Mizner Pledgor I, LLC's ("VMP") exclusive periods to file a plan of reorganization and obtain acceptance thereof to August 28 and October 27, 2025, respectively. As shared by Troubled Company Reporter, the Court entered an order approving bid procedures for the sale of the Property. Pursuant to that order and the bid procedures, VMO will conduct an auction for the property on June 16, 2025. VMO, with the services of its broker, is actively engaged in the marketing of the Property. The results of the sale of the Property will determine the Debtors' next steps in these cases and the contours of any chapter 11 plan. The Debtors explain that they have only been in bankruptcy for four months. Rather than seeking extensions to pressure creditors, the Debtors seek an extension to allow the sale process to unfold without distraction with the goal of paying all creditors in full. This is also a large case, as the Debtors have over $200 million in debt. The Debtors expect to be able to propose a viable plan for distributing the proceeds of the sale, and the sale is an unresolved contingency necessary to propose a viable plan. Counsel to the Debtors: Bradley S. Shraiberg, Esq. Shraiberg Page, PA 2385 NW Executive Center Dr., Ste. 300 Boca Raton, FL 33431 Telephone: (561) 443-0800 Facsimile: (561) 998-0047 Email: bss@slp.law About Via Mizner Owner I LLC Via Mizner Owner I LLC is a single asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). Via Mizner Owner I sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-10369) on January 15, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million each. Honorable Bankruptcy Judge Erik P. Kimball handles the case. The Debtor tapped Bradley S. Shraiberg, Esq., at Shraiberg Page, PA, as bankruptcy counsel and Bruce Rosetto, Esq., at Greenberg Traurig, PA as special counsel. VIRGINIA PARK: Court Transfers Bankruptcy Case Venue to Michigan ---------------------------------------------------------------- Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York granted the motion to transfer venue filed by the City of Detroit, Michigan and the Detroit Land Bank Authority ("DLBA," together with the City, "Detroit") of the chapter 11 cases of Virginia Park 1, LLC and its affiliates. The first-day declarant is Ronald Castellano, a member of Castellano Member LLC, which in turn is a manager of Debtors Virginia Park 1, LLC and Virginia Park 2, LLC. He is also the sole member of Herman Kiefer Member LLC, which is the sole member of Debtor Herman Kiefer Development LLC. He is also the owner and founder of Studio Castellano Architect, P.C., a New York City-based architecture and development firm. The Debtors are entities within a real estate development group led by Studio Castellano Architect, P.C. The Virginia Park entities -- Debtor Virginia Park 1, LLC, Debtor Virginia Park 2, LLC, non-Debtor Virginia Park 3, LLC, and non-Debtor Virginia Park 4, LLC -- were established for the purpose of acquiring, holding and developing the neighboring properties (houses and lots) surrounding the hospital complex, in the City of Detroit's Virginia Park neighborhood. Detroit seeks to transfer venue of the Debtors' cases to the U.S. Bankruptcy Court for the Eastern District of Michigan. Detroit points out that the only connections the Debtors have to New York are: (1) the fact that one of the Debtors, VP1, filed for authorization to operate in New York State; and (2) the fact that the listed principal places of business for VP1 and VP2 are in New York City. Moreover, VP1's application for authorization to work in New York seemed to have lapsed by the time of the Motion's filing, and Detroit argues that the Debtors should have filed the proper forms with this Court to establish that VP1 is authorized to conduct business in New York. Detroit argues that, even if venue in New York is proper, transfer is warranted. Detroit argues that most of the witnesses to be relevant to the dispute between the Debtors and Detroit are to be found in Michigan. It claims that the majority -- 83% by dollar amount and 77% by number -- of the Debtors' unsecured creditors are Michigan-based. Detroit argues because all of Debtors' properties are located in the Eastern District of Michigan and it is the most convenient district for the vast majority of interested parties and witnesses, a change of venue is appropriate, as matters concerning real property have always been of local concern and traditionally are decided at the situs of the property. Detroit contends as the assets, parties, witnesses, and creditors are mainly in Michigan, transferring the case would be in the interest of justice as transfer would promote the efficient administration of the estates, and it would also be convenient for the parties. It further argues transfer would be in the public interest because the Debtors' behavior affects the lives of the residents of Detroit. The Debtors claim that this is not a case where a debtor took actions to manufacture venue because the principal places of business of VP1 and VP2 have been the 165 East Broadway address since 2019. The Debtors contend that the New York office is the "nerve center" for the Debtors because all of their strategy, planning, operations, and management activities occur there, the office houses all books and records for all Debtors, and the office employs six to fourteen employees at any given time based on workload and projects at hand. The Debtors also point to proofs of claim which were filed after the Motion was filed and which, according to the Debtors, show that half of the Debtors' ten largest unsecured creditors (which have filed claims thus far) are located in New York, and 70% of these creditors are located outside of Michigan. The Debtors argue that, since the principal places of business for VP1 and VP2 are in New York and because HKD is an affiliate of VP1 and VP2, venue is proper here under 28 U.S.C. Sec. 1408. The Debtors argue that Detroit has not borne its heavy burden of proof to demonstrate that transfer of venue is merited in this case, under either a convenience of the parties or an interest of justice analysis. It is more efficient (and thus in the interest of justice) to keep the cases in New York, Debtors argue, because all business and legal decisions by the Debtors will emanate from New York, Debtors' counsel is in New York, and there is no reason why this Court cannot apply the laws of other jurisdictions. The Debtors argue further that keeping the cases in New York will serve the convenience of the parties as the Debtors' principals and their bankruptcy counsel, who are responsible for managing the Chapter 11 Cases, are located here, Castellano will be the primary witness in most matters, the Debtors' corporate headquarters are in New York, their books and records are here, and their executive management team (as yet unidentified by the Debtors) are here too. According to the Debtors' calculation, most of the major unsecured creditors (who have thus far filed claims) are located outside of Michigan; moreover, all of VP2's and HKD's equity holders are based in New York, and about 53% of VP1's total equity is held in New York. While the Debtors concede that most of their assets are in Detroit, they claim it is well-settled law that the location of the debtors' assets is not an important venue consideration. The Debtors list New York as the principal place of business for VP1 and VP2, based on their assertion that those two Debtors are operated out of New York (the venue hook for HKD is that it is an affiliate of two debtors whose cases purportedly belong in New York). However, the Court finds this seems unlikely to be the case for VP2, as a foreign corporation cannot conduct business in New York without obtaining a certificate of authority from the New York State Department of State, which is something VP2 did not do. Moreover, the record does not support a particularized finding that VP2's management or employees operated in New York. It is unclear what work the employees in the New York office do for any of the Debtors and whether the Debtors themselves actually employ any of the employees in the New York office, or whether they are instead employed by an affiliate entity. The record does not specify which entity owns the leasehold interest in the New York office. According to the Court, the mere fact that VP2's books and records are held in the NY office does not, on its own, support a finding that VP2 is operated out of New York, especially in the absence of VP2's filing for the appropriate authorization as a foreign corporation. The Court concludes assuming arguendo that VP1's principal place of business is in New York and that VP2 and HKD can both file in New York as related cases, transfer to the Eastern District of Michigan is still warranted under section 1412, even though the Debtors' choice of venue is entitled to great weight. There is no testimony concerning post-petition financing before the Court at present, nor is there any clear explanation of where the activities of the Debtors actually take place. Even though the Debtors claim that VP1 and VP2 are run out of New York City, they do not allege any link between HKD and New York City, and it seems, from the record before the Court, that HKD -- which is in charge of the large hospital redevelopment project in Detroit and the operations of which therefore seem highly likely to affect the financing of this case -- operates mostly if not entirely out of Detroit. Judge Glenn explains, "The main assets of each of the Debtors are pieces of real estate located in Detroit. This Court previously examined the location of a debtor's main asset when determining where postpetition financing would likely originate, and found that such financing was just as likely to come from the district where the asset could be found as in the debtor's domicile, as due diligence would have to be conducted at the site of the asset -- at least when that asset was a piece of real estate. It is unclear where the Debtors really operate, but each of the Debtors was created for the sole purpose of developing real estate in Michigan and each is mired in litigation (or pre-litigation negotiations) in Michigan, which will likely affect the availability of postpetition financing. Because of the fuzziness of the current record concerning the Debtors' operations, the importance of the location of the real estate (especially where, as here, all the Debtors filed as single asset real estate debtors), and the purpose of each of the Debtors is the development of property in Detroit, this prong cuts in favor of transfer." This Court finds the fact that the Debtors' principal (Castellano) and some of their attorneys are based in New York should not outweigh the fact that Detroit provides a long list of potential witnesses who have relevant knowledge, most of whom are closest to the Michigan court. A copy of the Court's Memorandum Opinion and Order is available at http://urlcurt.com/u?l=einc0nfrom PacerMonitor.com. Attorneys for the City of Detroit and the Detroit Land Bank Authority: Marc N. Swanson, Esq. Ronald A. Spinner, Esq. Jonathan S. Green, Esq. MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. 150 West Jefferson Avenue, Suite 2500 Detroit, MI 48226 E-mail: swansonm@millercanfield.com spinner@millercanfield.com Attorneys for the Wayne County Treasurer: Richardo I. Kilpatrick, Esq SHERMETA, KILPATRICK & ASSOCIATES, PLLC 615 Griswold, Suite 1305 Detroit, MI 48226-3985 E-mail: rkilpatrick@kaalaw.com Proposed Attorneys for the Debtors and Debtors in Possession: Andrew K. Glenn, Esq. Jed I. Bergman, Esq. Richard C. Ramirez, Esq. Malak S. Doss, Esq GLENN AGRE BERGMAN & FUENTES LLP 1185 Avenue of the Americas 22nd Floor New York, NY 10036 E-mail: jbergman@glennagre.com rramirez@glennagre.com mdoss@glennagre.com About Virginia Park 1 LLC Virginia Park 1 LLC provides real estate-related services, including property management and support activities, in connection with properties in Michigan. Virginia Park 1 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 25-11308) on June 10, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Martin Glenn handles the case. The Debtors are represented by Andrew K. Glenn, Esq., Jed I. Bergman, Esq., Richard Ramirez, Esq., and Malak S. Doss, Esq. at GLENN AGRE BERGMAN & FUENTES LLP. VSBROOKS INC: Tarek Kiem of Kiem Law Named Subchapter V Trustee --------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Tarek Kiem, Esq., at Kiem Law, PLLC as Subchapter V trustee for VSBROOKS Inc. Mr. Kiem will be paid an hourly fee of $350 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Kiem declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Tarek Kiem, Esq. Kiem Law, PLLC 8461 Lake Worth Road, Suite 114 Lake Worth, FL 33467 Tel: (561) 600-0406 tarek@kiemlaw.com About VSBROOKS Inc. VSBROOKS Inc., doing business as The 3rd Eye Creative Agency, is a certified women-owned independent full-service marketing agency in Miami specializing in health and wellness brands. With more than 25 years of experience, it focuses on generational healthcare advertising, women's healthcare initiatives, multicultural audience engagement and B2B growth within regulatory compliance. VSBROOKS Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-18690) on July 29, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. Judge Laurel M. Isicoff handles the case. The Debtor is represented by Robert P Charbonneau, Esq., at Agentis PLLC. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. 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