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250825.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, August 25, 2025, Vol. 29, No. 236 Headlines 11 7 TAMBAYAN: Gets Final OK to Use Cash Collateral 229 ELM ST: Monique Almy Named Subchapter V Trustee 3910 ENTERPRISES: Files Emergency Bid to Use Cash Collateral 524 UNION STREET: Gina Klump Named Subchapter V Trustee 8607 WURZBACH: To Sell San Antonio Property to Vemuri for $1.2MM ACCORD LEASE: Court Extends Cash Collateral Access to Oct. 10 ADMIRE CARE: Court Extends Cash Collateral Access to Oct. 1 ADVANCED DOMINO: To Sell Supermarket Biz to Ilham Bakhtaoui ADVANCED TRENCHLESS: Has Deal on Cash Collateral Access AHF PARENT: Moody's Affirms 'B3' CFR & Alters Outlook to Stable ALL PHASE: Case Summary & 20 Largest Unsecured Creditors AMERIFIRST FINANCIAL: Court Okays Creditor Settlement in Chapter 11 ANBA TONEL: Nat Wasserstein Named Subchapter V Trustee ANGLIN CONSULTING: Seeks Cash Collateral Access ANTONIO MUNOZ: Frances Smith Named Subchapter V Trustee APPLIED POWDERCOAT: Court OKs Deal to Use FBOL's Cash Collateral ARROW PHARMACY: Seeks Chapter 11 Bankruptcy in Texas ARTERA SERVICES: Moody's Lowers CFR to Caa1, Outlook Negative ASCEND PERFORMANCE: Hires Hilco as Equipment Lease Advisor ASSURE AFFORDABLE: Files Emergency Bid to Use Cash Collateral AVALON SUGAR: Seeks to Sell Sugarland Property at Auction AVON PRODUCTS: Nears Bankruptcy Plan Approval Despite Pushback AZZ INC: Moody's Upgrades CFR to 'Ba2', Outlook Remains Stable BAXSTO LLC: Case Summary & 20 Largest Unsecured Creditors BB SERVICER: Section 341(a) Meeting of Creditors on September 18 BEACON POINT: Seeks Chapter 11 Bankruptcy in Florida BELLWETHER INC: Seeks to Sell Equipment at Online Auction BESPOKE CONSTRUCTION: U.S. Trustee Unable to Appoint Committee BEXIN REALTY: Court Extends Cash Collateral Access to Oct. 28 BIOTACTICS INC: Has Deal on Cash Collateral Access BLACKJEWEL LLC: DOL's Motion to Compel Discovery Granted in Part BLOCKFI INC: Seeks Court OK for $13MM Deal After Objector Withdraws BOY SCOUTS: Court Okays Estate Professionals' Fee Applications BOYD GROUP: DBRS Assigns BB(high) Issuer Rating, Trend Stable BP RETAIL PARTNERS: Case Summary & 20 Largest Unsecured Creditors BP RETAIL TX: Case Summary & Six Unsecured Creditors BRIDGEVOICE INC: Seeks Chapter 11 Bankruptcy in New York CAASTLE INC: Bankruptcy Auction to Sell Clothing and Laundry Assets CABINETDNA LLC: Section 341(a) Meeting of Creditors on September 15 CHEMTRADE LOGISTICS: DBRS Confirms BB(high) Issuer Rating CINEMA MANAGEMENT: Court Extends Cash Collateral Access to Aug. 31 CITIUS PHARMACEUTICALS: Reports $9.2 Million Net Loss in Fiscal Q3 CIVIL LLC: Seeks Cash Collateral Access CLAIRE'S HOLDINGS: To Sell IP and NA Stores to Ames Watson CLST ENTERPRISES: Weinberg Zareh Must Disgorge $30,000 Retainer CONCEPTS CONNECTIONS: Case Summary & Three Unsecured Creditors COOKSON'S TRANSMISSION: Case Summary & Eight Unsecured Creditors COUNSELING CENTER: Seeks Chapter 11 Bankruptcy in Florida CTN HOLDINGS: Co-Founder Faces Fraud Allegations from SEC DMDS LLC: Court Denies Bid to Sell Exempt Property DMK PHARMACEUTICALS: Court Narrows Claims in Case v. Catalent DMMJ REALTY: Hires Koblick & Weinstein CPA P.C. as Accountant DMMJ REALTY: Hires Northgate as Real Estate Advisor EAST COAST DESIGN: Gets Interim OK to Use Cash Collateral EAST COAST DESIGNS: Seeks Subchapter V Bankruptcy in Massachusetts EDWARDS BODY: Carol Fox of GlassRatner Named Subchapter V Trustee ENERGY FOCUS: Reports $231K Net Loss on $1.1M Q2 Revenue ERS MEDICAL: Gets Interim OK to Use Cash Collateral Until Sept. 10 ES PARTNERS: Court Extends Cash Collateral Access to Sept. 30 EVOLVE RECOVERY: Seeks Subchapter V Bankruptcy in Florida EXTREME PROFITS: Files Emergency Bid to Use Cash Collateral FAIRFFER OFFER: Vina Property Sale to Moredocks for $129K OK'd FLEMING STEEL: Gets Interim OK to Use Cash Collateral FLOOD SPECIALISTS: Janice Seyedin Named Subchapter V Trustee FOCUS UNIVERSAL: Reports $1.5M Net Loss for Fiscal Q2 FRESH START: Court OKs Gibsonton Property Sale to DAS Logic FUEL FITNESS: Gets Extension to Access Cash Collateral FUEL HOMESTEAD: Gets Extension to Access Cash Collateral GD TRANSPORT: Gets OK to Use Cash Collateral Until Sept. 3 GENESIS GLOBAL: Asks Court Not to Push Back Ch. 11 DIP Approval GILBERT LEGGETT: Court Extends Cash Collateral Access to Sept. 13 GLOBAL DIGITAL: Section 341(a) Meeting of Creditors on September 9 GLOBAL DIGITAL: Todd Headden Named Subchapter V Trustee GREGORY NATHAN: To Sell Business Assets to Masso Enterprises GRESHAM WORLDWIDE: Court Approves Plan for Oct. 1 Chapter 11 Exit HALL OF FAME: Reports Fiscal Q2 Net Loss of $12 Million HARDING BELL: Seeks to Amend Cash Collateral Order HIGH PLAINS: Hires Condon Tobin Sladek Sparks as Attorney ICAN BENEFIT: To Sell Class Claims to EmpireMC for $12K IDEAL HEALTH: Seeks Continued Cash Collateral Access INTERNATIONAL DIRECTIONAL: Gets Interim OK to Use Cash Collateral J INTERNATIONAL: Gets Interim OK to Use Cash Collateral JACKSBOSTON LLC: Case Summary & 20 Largest Unsecured Creditors JMC UNIT 1: Aleida Martinez Molina Named Subchapter V Trustee JMC UNIT 1: Files Emergency Bid to Use Cash Collateral JSCO ENTERPRISES: BDO Awarded $1,920,000 Damages Under DPTA K&D'S SANTA CRUZ: Christopher Hayes Named Subchapter V Trustee KITCHEN MAN: Gets Interim OK to Use Cash Collateral KITCHEN MAN: Kathleen O'Malley Named Subchapter V Trustee KOSMOS ENERGY: Fitch Lowers LongTerm IDR to 'B-', On Watch Negative L & D CAFE: Case Summary & 19 Unsecured Creditors L.D. LYTLE: To Sell Red Oak Property to 4452 Broad for $1.5MM LAFLEUR NURSERIES: Gets OK to Use Cash Collateral Until Sept. 3 LARCO POOLS: Amy Denton Mayer Named Subchapter V Trustee LARCO POOLS: Seeks Subchapter V Bankruptcy in Florida LCC INC: Gets Interim OK to Use Cash Collateral Until Sept. 15 LYLES CAPITAL: Court Terminates Cash Collateral Access M & N STRUCTURES: U.S. Trustee Appoints Creditors' Committee MASS POWER: Court Extends Cash Collateral Access to Aug. 28 MISSION SELF-STORAGE: Jerrett McConnell Named Subchapter V Trustee MODIVCARE INC: Faces Nasdaq Delisting Following Chapter 11 MODIVCARE INC: Files Ch. 11 to Cut $1.1B Debt, Secures $100M DIP MOFUS DOMUS: Seeks Cash Collateral Access MOSS CREEK: Fitch Affirms 'B' LongTerm IDR, Outlook Stable NEUROONE MEDICAL: Sio Capital Management Holds 7.07% Equity Stake NEW FORTRESS: Capital World Investors Hold 2.5% Equity Stake NIBA DESIGNS: Tarek Kiem of Kiem Law Named Subchapter V Trustee OBSIDIAN ENERGY: DBRS Confirms B(high) Issuer Rating ODYSSEY MARINE: Two Seas Capital Holds 9.5% Stake as of June 30 OI SA: BTG-Backed Supplier Challenges Chapter 11 Plan OMIMEX PETROLEUM: Hires Condon Tobin Sladek Sparks as Attorney ONDAS HOLDINGS: Reports $10.75 Million Net Loss for Fiscal Q2 PALMAS ATHLETIC: Has Deal on Cash Collateral Access PARKERVISION INC: Reports $1.6 Million Net Loss for Fiscal Q2 PCF GMBH: Fitch Lowers Rating on Sr. Secured Notes to 'CCC+' PORCELATTO CORP: Files Emergency Bid to Use Cash Collateral PRAESUM HEALTHCARE: Gets Interim OK to Use Cash Collateral PREMIER DATACOM: Emerges from Chapter 11 with Sundara's Investment QUALITY EDUCATION: Moody's Affirms Ba2 Rating on 2023A/B Rev. Bonds REBELLION POINT: Gets Extension to Access Cash Collateral REKOR SYSTEMS: Net Loss Narrows to $8.7 Million in Fiscal Q2 RICHMOND BELLY: Court Extends Cash Collateral Access to Sept. 30 RITE AID: Execs Win Securities Case Dismissal Over Opioids, Retail ROYAL GRANT: Section 341(a) Meeting of Creditors on September 18 SAINT CLOUD: Mark Sharf Named Subchapter V Trustee SAVANNAH HOLDINGS: Case Summary & Two Unsecured Creditors SHERWOOD HOSPITALITY: Seeks to Use Cash Collateral SIERRA NEVADA BUILDERS: Seeks Subchapter V Bankruptcy in Nevada SIERRA NEVADA: Brian Shapiro Named Subchapter V Trustee SIGNIA LTD: Male Excel Lawsuit May Proceed v. Owners, Affiliates SK INDUSTRIES: Gets Extension to Access Cash Collateral SKYX PLATFORMS: Fiscal Q2 Net Loss Rises to $8.8M on $23.1M Revenue SMITH ENVIRONMENTAL: Hires Messari Group LTD as Accountant SOLAR AVENUE: Brian Shapiro Named Subchapter V Trustee SOLAR AVENUE: Seeks Subchapter V Bankruptcy in Nevada SPARC ENTERPRISES: Section 341(a) Meeting of Creditors on Sept. 10 SPIRIT AIRLINES: Borrows $275MM to Ensure Card Payments Continuity SRQ TAXI: Drivers' Breach of Contract Suit v. SMAA Tossed SSS PROPERTIES: Seeks Subchapter V Bankruptcy in Ohio STERNE WOOD: To Sell San Diego Property to ABI Investments STOKES & STOKES: Lender Seeks to Prohibit Cash Collateral Access SUMMIT HARD: Gets Interim OK to Use Cash Collateral SUNRISE DETOX: Section 341(a) Meeting of Creditors on September 18 SURVWEST LLC: Trustee Taps Dickensheet & Associates as Auctioneer SYNAPSE FINANCIAL: CFPB Sues to Recover Consumers Lost Funds TENNESSEE CREDIT: Kimberly Strong Named Subchapter V Trustee TLC MEDICAL: Court Extends Cash Collateral Access to Oct. 21 TOGETHER GOOD: Voluntary Chapter 11 Case Summary TYLER 2 CONSTRUCTION: Gets Extension to Access Cash Collateral ULTIMATE PAVERS: Seeks Subchapter V Bankruptcy in Florida UPLIFT RX: Trustee Drops RICO Claims Against BakerHostetler VENETIAN NAIL: Seeks Subchapter V Bankruptcy in Florida VERRICA PHARMACEUTICALS: Swings to $204K Net Income in Fiscal Q2 WELCOME GROUP: Seeks to Use Cash Collateral WEST COUNSELING: Gets Final OK to Use Cash Collateral WHITE FOREST: Set for Chapter 7 Liquidation After Failed Mine Sale WHITEHORSE 401: Has Deal on Cash Collateral Access WYNN RESORTS: Capital World Investors Hold 9.2% Equity Stake ZAMA&ZAMA INC: Gets Final OK to Use Cash Collateral [] Angeion Group Earns Spot on 2025 Inc. 5000 for the Fourth Time ********* 11 7 TAMBAYAN: Gets Final OK to Use Cash Collateral --------------------------------------------------- 11 7 Tambayan, Inc. received final approval from the U.S. Bankruptcy Court for the District of Nevada to use cash collateral. The court's final order authorized the Debtor to use the cash collateral of its secured creditors in amounts not to exceed 125% of each line item set forth in its budget. The Debtor reserves all rights and claims with respect to any issues relating to whether any party holds a valid claim or interest in the cash collateral. The Debtor had cash on hand of approximately $8,600 and no accounts receivable as of the petition date. This cash collateral may be subject to security interests claimed by three merchant cash advance lenders: National Funding doing business as Quick Bridge, Spartan Business Solutions, and IMS Fund, LLC. The Debtor acknowledges debts of approximately $58,172 to Quick Bridge, $48,475 to Spartan, and $21,900 to IMS Fund. Each of these creditors has filed UCC-1 financing statements asserting security interests in the Debtor's accounts receivable, with Quick Bridge holding the first priority position. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/M46kb from PacerMonitor.com. About 11 7 Tambayan Inc. 11 7 Tambayan, Inc. operates a Filipino restaurant and grocery store in Reno, Nevada. The Debtor sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-50581) on June 25, 2025. In its petition, the Debtor reported estimated assets up to $50,000 and estimated liabilities between $100,000 and $500,000. Judge Hilary L. Barnes handles the case. The Debtor is represented by Kevin A. Darby, Esq., at Darby Law Practice, Ltd. 229 ELM ST: Monique Almy Named Subchapter V Trustee --------------------------------------------------- Matthew Cheney, the Acting U.S. Trustee for Region 4, appointed Monique Almy, Esq., as Subchapter V trustee for 229 Elm St NW, LLC. Ms. Almy, a partner at Crowell & Moring, LLP, will be paid an hourly fee of $800 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Almy declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Monique D. Almy, Esq. Crowell & Moring, LLP 1001 Pennsylvania Avenue, NW Washington, DC 20004 Phone: (202) 624-2935 malmy@crowell.com About 229 Elm St NW LLC 229 Elm St NW, LLC is a real estate holding company that appears to own or manage property at 229 Elm Street NW in Washington, DC. The company is managed by Christos Retzos who also owns 100% of the entity. 229 Elm St NW sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.C. Case No. 25-00185) on May 15, 2025. In its petition, the Debtor reported between $500,000 and $1 million in assets and liabilities. Judge Elizabeth L. Gunn oversees the case. The Debtor is represented by Frances C. Wilburn, Esq., at Offit Kurman. 3910 ENTERPRISES: Files Emergency Bid to Use Cash Collateral ------------------------------------------------------------ 3910 Enterprises, Inc. asked the U.S. Bankruptcy Court for the Southern District of Texas, Galveston Division, for authority to use cash collateral and provide adequate protection. The Debtor, a property holdings and management company serving primarily low-income families in Galveston, filed for Chapter 11 on August 5 in order to halt a foreclosure and facilitate the sale of some of its properties. It continues to operate as a debtor in possession, and no trustee, examiner, or creditors' committee has been appointed. The Debtor has mortgages on seven properties, many of which include assignment of rents provisions, potentially giving the lenders a lien on the cash generated from those properties. Although no lender has formally asserted a lien on cash, the Debtor is proactively seeking court authorization to use this cash collateral. Additionally, the Debtor discovered three UCC financing statements filed by Moody National Bank relating to properties that were sold prior to the bankruptcy filing, with the last sale occurring in September 2024. As of the petition date, the Debtor had approximately $6,252 in its bank account and receives about $27,150 per month in rent payments, including payments from tenants and the Galveston Housing Authority. The Debtor believes the total value of its properties is around $5 million, with mortgage obligations totaling approximately $3.4 million, resulting in an equity cushion of about $1.6 million. Based on this, the Debtor argued that any potential secured creditors are oversecured and adequately protected by existing equity and ongoing operations. The Debtor has submitted a 13-week interim budget detailing the necessary and reasonable expenses required to continue operations, including payroll, insurance, utilities, and other critical costs. The Debtor said it lacks sufficient funds beyond the cash collateral and cannot operate for three weeks without immediate access to those funds. The failure to pay these expenses would result in immediate and irreparable harm to the estate. The Debtor also offered to provide weekly financial reports to any party asserting an interest in the cash, allowing them to monitor post-petition operations and the value of their collateral. About 3910 Enterprises Inc. 3910 Enterprises, Inc. manages real estate on behalf of clients and provides property appraisal services. 3910 Enterprises Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-80362) on August 5, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Alfredo R. Perez handles the case. The Debtor is represented by Genevieve M. Graham, Esq., at Genevieve Graham Law, PLLC doing business as Graham, PLLC. 524 UNION STREET: Gina Klump Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 17 appointed Gina Klump, Esq., at the Law Office of Gina R. Klump, as Subchapter V trustee for 524 Union Street, a general partnership. Ms. Klump will be paid an hourly fee of $525 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Klump declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Gina Klump, Esq. Law Office of Gina R. Klump 11 5th Street, Suite 102 Petaluma, CA 94952 Phone: (707) 778-0111 Email: gklump@klumplaw.net About 524 Union Street 524 Union Street, a general partnership, filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Calif. Case No. 25-30645) on August 14, 2025, listing between $1 million and $10 million in assets and liabilities. Judge Hannah L. Blumenstiel represents the Debtor as legal counsel. 8607 WURZBACH: To Sell San Antonio Property to Vemuri for $1.2MM ---------------------------------------------------------------- 8607 Wurzbach Management, LP, seeks approval from the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division, to sell Property, free and clear of liens, claims, interests, and encumbrances. The Debtor is a Texas limited partnership with its principal place of business and all of its assets located in San Antonio, Texas. Debtor owns and operates eight commercial buildings which are part of a small complex near the intersection of Wurzbach and Fredericksburg Roads in the medical center area, previously with a physical address of 8607 and 8647 Wurzbach Road, San Antonio, Texas. The current occupancy rate for the properties is approximately 80%. The Debtor's Property is comprised of improvements located at 8607 Wurzbach Road, San Antonio, Texas 78240. The Property is appraised by the Bexar County Appraisal District at $2,687,000. The Debtor valued the Property in its Schedules filed in 2023 at $2,570,000.00. The Debtor obtained a recent appraisal for the Property which provided a current valuation of $2,200,000.00. The Debtor originally pursued an offer of $2,500,000.00 for the Property from an investor in Florida. However, that buyer decided not to purchase the Property due to uncertainties in the economy. The Debtor then employed a broker agent and has aggressively marketed the Property for more than five months. In June, the Debtor, in consultation with its Broker and counsel, listed the Property through a marketing platform known as Ten-X. Ten-X works in conjunction with the LoopNet.com online commercial real estate platform that has more than 13 million monthly visitors, to facilitate an auction of selected commercial properties with a minimum reserve price which is kept confidential. By working with Ten-X, all potential buyers already have access to the due diligence materials before they decide to make an offer on a given property. The cost of the services provided by Ten-X is not paid by the seller but instead paid by the ultimate winning bidder for the Property. The Ten-X platform was the most effective and efficient way available to market the Property for sale. During the process, 5 buyers also made "off-platform" bids directly to the Debtor’s realtor. Some of those prospective buyers were also deemed "qualified bidders" for the auction by Ten-X, meaning those buyers could participate in the auction as well. The offer selected by the Debtor in consultation with its Broker and counsel is believed to be the highest and best offer for the Property. The Debtor and the winning bidder, an entity known as Vemuri, LLC, a Florida limited liability company, executed a Purchase and Sale Agreement (PSA) with the sale price of $1,200,000.00. The Buyer has agreed to pay the $36,000 fee charged by Tex-X for use of their marketing platform and advance payment of certain due diligence expenses. The Debtor believes the sale contemplated is an exercise of reasonable, proper and sound business judgment. Further, the sale proposed in this Application will ensure that the Debtor can successfully liquidate the Property and pay the debts owed to its creditors in full. The proposed Buyer under the PSA is not related to the Debtor or its equity owners and is not an insider of the Debtor. The lienholder of the Property are Bexar County Tax Assessor-Collector and the Northeast Bank. The Debtor appears to be owned jointly by Ms. Frizzell and the heir of her deceased husband's former business partner. However, Ms. Frizzell is the authorized representative of the Debtor and therefore has exclusive authority to execute the sales and transfer documents in connection with the sale of the Property. About 8607 Wurzbach Management, LP 8607 Wurzbach Management, L.P. is a Texas limited partnership with its principal place of business and all of its assets located in San Antonio, Texas. It owns and operates three commercial buildings which are part of a small complex near the intersection of Wurzbach and Fredericksburg Roads in the medical center area, with a physical address of 8607 and 8647 Wurzbach Road, San Antonio, Texas. The current occupancy rate for the complex is approximately 90%. 8607 Wurzbach Management filed Chapter 11 petition (Bankr. W.D. Texas Case No. 23-51208) on Sept. 4, 2023, with $1 million to $10 million in assets and $500,001 to $1 million in liabilities. Savitri Frizzell of 8607 Wurzbach Corporation, general partner of 8607 Wurzbach Management, signed the petition. Judge Michael M. Parker oversees the case. H. Anthony Hervol, Esq., at the Law Office of H. Anthony Hervol, represents the Debtor as bankruptcy counsel. ACCORD LEASE: Court Extends Cash Collateral Access to Oct. 10 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois issued its 11th interim order extending Accord Lease, Inc.'s authority to use its lenders' cash collateral through October 10. The interim order signed by Judge Deborah Thorne authorized the Debtor to use the cash collateral of BMO Bank N.A., and 11 other lenders to pay operating expenses in accordance with its budget and an earlier order issued by the court on Jan. 8. The Debtor projects total operational expenses of $61,976.74. The next hearing is set for October 8. BMO Bank, N.A. and 11 other lenders assert interests in the Debtor's cash collateral, which includes funds on deposit in accounts maintained by the Debtor and lease fees generated by the Debtor's property in which they have liens. The property purportedly secures an indebtedness of approximately of $5,432,758.20. About Accord Lease Inc. Accord Lease Inc. operates an automotive leasing and renting business in Elgin, Ill. Accord Lease filed Chapter 11 petition (Bankr. N.D. Ill. Case No. 24-16518) on November 1, 2024, listing total assets of $3,773,857 and total liabilities of $5,800,404. Igor Tsapar, president of Accord Lease, signed the petition. Judge David D. Cleary handles the case. O. Allan Fridman, Esq., at the Law Office of O. Allan Fridman is the Debtors legal counsel. BMO Bank N.A., as lender, is represented by: James P. Sullivan, Esq. Chapman and Cutler, LLP 320 South Canal Street Chicago, IL 60606 Tel: 312.845.3000 jsullivan@chapman.com ADMIRE CARE: Court Extends Cash Collateral Access to Oct. 1 ----------------------------------------------------------- Admire Care, LLC received third interim approval from the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, to use cash collateral. The third interim order signed by Judge Tiffany Geyer authorized the Debtor to use cash collateral through October 1 to pay the amounts expressly authorized by the court, including payments to the U.S. trustee for quarterly fees; 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 the U.S. Small Business Administration, a secured creditor. The Debtor projects total operational expenses of $324,100 for the period from July to October. As adequate protection, SBA and other secured creditors, including Headway Capital, LLC, iAdvance and RDM Capital Funding, LLC, which have inferior interests in the cash collateral, will be granted a perfected post-petition lien on the cash collateral, with the same validity, priority and extent as their pre-bankruptcy liens. In addition, the Debtor was ordered to keep its property insured as further protection to creditors. The next hearing is scheduled for October 1. About Admire Care LLC Admire Care, LLC is a home healthcare services provider based in Clermont, Florida, that offers medical and non-medical care to patients in their homes. Admire Care sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-03163) on May 27, 2025. In its petition, the Debtor reported estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. Judge Tiffany P. Geyer handles the case. The Debtor is represented by Jeffrey Ainsworth, Esq., at BransonLaw, PLLC. ADVANCED DOMINO: To Sell Supermarket Biz to Ilham Bakhtaoui ----------------------------------------------------------- Advanced Domino Inc., dba Domino Supermarket, seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York, to sell Assets, free and clear of liens, claims, interests, and encumbrances. The Debtor receives an offer from the Ilham Bakhtaoui (Buyer) to purchase its assets including furniture, fixtures, equipment, leasehold, restrictive covenants, and goodwill in the purchase price of $2,500,000. The Debtor determines that the proposed purchase price constitutes fair market value based on the size, location, revenue, and condition of the business. The Buyer will make an initial deposit of $50,000 to be paid upon the execution of the Purchase Agreement and the remaining will be paid on or before 30 days of the execution of the agreement. The closing date will be on September 30, 2025. All the sale proceeds will be received by the Debtor, with all liens, claims, and encumbrances to attach to the proceeds. The Debtor seeks authority to conduct the Sale free and clear of liens, mortgages, pledges, claims, encumbrances and other restrictions or limitations to attach to the proceeds of the sale. Advanced Domino Inc. dba Domino Supermarket Advanced Domino Inc., doing business as Domino Supermarket, is a grocery store in Brooklyn, NY that offers a variety of food and household items for local residents. Advanced Domino Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-44263) on Oct. 15, 2024. In the petition filed by Victoria Salkinder, as CEO, the Debtor reports total assets of $800,667 and total liabilities of $1,219,101. The Honorable Bankruptcy Judge Elizabeth S. Stong handles the case. The Debtor is represented by Alla Kachan, Esq. at LAW OFFICES OF ALLA KACHAN, P.C. ADVANCED TRENCHLESS: Has Deal on Cash Collateral Access ------------------------------------------------------- Advanced Trenchless, Inc. asks the U.S. Bankruptcy Court for the Northern District of California, Oakland Division, for authority to use cash collateral in accordance with its agreement with the U.S. Small Business Administration. The SBA holds two loans with the Debtor: a $500,000 loan from 2020 (Note 1), which is unsecured, and a $1.5 million loan from 2022 (Note 2), secured by all of the Debtor's personal property. Note 2 was properly perfected through a UCC-1 financing statement. The SBA's lien is junior to a prior, perfected lien held by Comerica Bank, which has already entered into a separate, court-approved cash collateral stipulation with the Debtor. The proposed stipulation with the SBA would allow the Debtor to use up to $342,060 per month in cash collateral (plus a 5% cushion), in accordance with a detailed operating budget. The SBA will not receive adequate protection payments but will be granted a replacement lien on all post-petition assets, maintaining its second-priority status. This lien includes all business assets, proceeds, and cash, retroactive to the petition date. The Debtor argues that approval of the stipulation is necessary to continue operations, meet payroll, pay operating expenses, and avoid costly litigation over cash collateral. Without use of this collateral, the Debtor would be unable to preserve the value of its estate or pursue a successful reorganization. A hearing on the matter is set for September 12. A copy of the motion is available at https://urlcurt.com/u?l=oEknYd from PacerMonitor.com. About Advanced Trenchless Inc. Advanced Trenchless, Inc. provides trenchless sewer, plumbing, and drain services across Northern California. The company specializes in hydro jetting, sewer and drain repairs, trenchless replacements, and camera inspections. Founded in 1978, it has decades of experience addressing sewer infrastructure issues with a focus on non-commission-based, full-service solutions. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-41165) on July 1, 2025. In the petition signed by Ryan Charles, president, the Debtor disclosed $536,960 in assets and $4,644,613 in liabilities. Judge Charles Novack oversees the case. David A. Arietta, Esq., at the Law Offices of David A. Arietta, represents the Debtor as legal counsel. Comerica Bank, as secured creditor, is represented by Jessica M. Simon, Esq., at Hemar, Rousso & Heald, LLP. AHF PARENT: Moody's Affirms 'B3' CFR & Alters Outlook to Stable --------------------------------------------------------------- Moody's Ratings changed AHF Parent Holding, Inc.'s (AHF) outlook to stable from negative. Moody's also affirmed the company's ratings, including its B3 Corporate Family Rating, B3-PD Probability of Default Rating, and the B3 rating on the company's senior secured first lien term loan facilities due 2028. The outlook change to stable reflects Moody's expectations that AHF's credit metrics and cash flow generation will meaningfully improve in 2025 supported by relatively stable revenue and higher profitability despite a challenging demand environment. The company's large domestic manufacturing footprint provides a competitive advantage over imported flooring products which are exposed to tariffs and supports AHF's strong market position and pricing flexibility. Moody's also expects that AHF's Moody's-adjusted EBITDA will benefit from the realization of restructuring and footprint consolidation initiatives, and from a significant reduction in transaction and restructuring expenses. As a result, Moody's projects AHF's debt/EBITDA leverage ratio will improve to around 5.5x over the next 12 months down from 7.3x at the end of fiscal 2024, and Moody's expects free cash flow generation of $30 million in fiscal 2025, compared to a free cash flow deficit in 2024. The anticipated free cash flow provides adequate liquidity to fund growth investments and required annual amortization payment on the term loan of $14.2 million. The ratings affirmation reflects that Moody's projections for AHF's financial leverage aligns with the level Moody's expects at the B3 CFR. Moody's also remains cautious around the stability of demand for AHF's flooring products, primarily due to the company's exposure to the cyclical housing market and discretionary consumer spending. US existing home sales have slowed to levels last experienced during the 2008-2009 financial crisis, and repair and remodeling activity is showing signs of moderation amid rising borrowing costs and persistent inflationary pressures. RATINGS RATIONALE AHF's B3 CFR broadly reflects its high debt/EBITDA leverage at 6.7x as of the last 12-month period (LTM) ending 1Q-2025 and exposure to cyclical consumer discretionary spending. AHF's credit profile also reflects its narrow product focus in the mature and discretionary hard surface flooring industry. Cumulative high inflation and higher borrowing costs are pressuring consumer spending and negatively impacting demand for the company's products. There is uncertainty around the company's ability to meaningfully improve its profitability and cash flow generation amid weaker consumer discretionary spending. AHF is highly acquisitive and the large transaction related charges contributed to the company's free cash flow deficits since 2021. AHF has high geographic and customer concentration with sales primarily in North America and with its top two customers representing about a quarter of annual sales. The company's credit profile benefits from a good market position in the US hardwood flooring market, aided by its strong market leading position in the solid wood flooring (SWF) category, and #2 position in engineered wood flooring (EWF). The company has a broad flooring product offering and good end market diversification with sales in the commercial segment now representing just over a third of revenue. AHF's exposure to US tariffs is low given its large domestic manufacturing footprint, which is a competitive advantage versus industry competitors that rely on imports, and positions the company well to gain share particularly in the LVT product category. Moody's projects that debt/EBITDA will improve to 5.5x over the next 12 months, reflecting a significant reduction in restructuring charges and realization of the benefits from restructuring initiatives, offset by ongoing demand pressures. The company's differentiated brand portfolio with the ability to service distribution partners without channel conflict is also a competitive advantage. AHF's adequate liquidity is supported by a $2 million cash balance and access to a mostly undrawn $75 million revolving facility as of March 30, 2025, as well as the lack of meaningful debt maturities until the revolver expiration in February 2027. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The stable outlook reflects Moody's expectations AHF profitability and free cash flow generation will sequentially improve over the next 12 months, which will improve its credit metrics and provide good financial flexibility to fund debt repayment and navigate the currently challenging demand environment. The ratings could be downgraded if AHF's revenue or EBITDA weakens, debt/EBITDA is sustained above 6.5x, EBITDA less capital spending/interest falls below 1.0x, or if free cash flow is weak or negative. The ratings could also be downgraded if liquidity deteriorates for any reason, including reliance on revolver borrowings, or if the company completes a debt-financed acquisition or shareholder distribution that increases leverage. The ratings could be upgraded if the company demonstrates a consistent track record of organic revenue growth alongside EBITDA margin expansion, sustains debt/EBITDA below 5.0x. The company would also need to maintain at least good liquidity with consistent good positive free cash flows, and Moody's expectations of balanced financial policies that support credit metrics at those levels. Headquartered in Mountville, PA, AHF Parent Holding, Inc. (AHF) manufactures and distributes hard surface flooring in North America to both residential and commercial end markets. The company's flooring product categories include solid wood flooring (SWF), engineered wood flooring (EWF), luxury vinyl tile (LVT), vinyl composite tile (VCT), stone polymer core (SPC), and porcelain tile products, among others. Following the February 2022 leveraged buyout transaction, AHF is majority owned by Paceline Equity Partners. The company reported revenue for the LTM period ending March 30, 2025 of $802 million. The principal methodology used in these ratings was Consumer Durables 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. ALL PHASE: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: All Phase Solutions, LLC 1900 Glades Road, Suite 600-07 Boca Raton, FL 33431 Business Description: All Phase Solutions, LLC, based in Boca Raton, Florida, provides nonresidential building construction services, including commercial and institutional projects. Chapter 11 Petition Date: August 22, 2025 Court: United States Bankruptcy Court Southern District of Florida Case No.: 25-19745 Judge: Hon. Mindy A Mora Debtor's Counsel: Aaron Wernick, Esq. WERNICK LAW PLLC 2255 Glades Rd. Ste 324A Boca Raton, FL 33431 Tel: (561) 961-0922x1 E-mail: aw@wernicklaw.com Total Assets: $1,083,216 Total Liabilities: $2,370,464 The petition was signed by Saleh Rabah as president. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/SDZQFDI/All_Phase_Solutions_LLC__flsbke-25-19745__0001.0.pdf?mcid=tGE4TAMA AMERIFIRST FINANCIAL: Court Okays Creditor Settlement in Chapter 11 ------------------------------------------------------------------- Vince Sullivan of Law360 Bankruptcy Authority reports that AmeriFirst Financial Inc., the bankrupt mortgage lender, won approval in Delaware on August 21, 2025, for a global settlement with creditors that ends two years of litigation and clears the way for the company to propose a Chapter 11 plan. About AmeriFirst Financial AmeriFirst Financial, Inc., is a mid-sized independent mortgage company in Mesa, Ariz. AmeriFirst and its affiliate Phoenix 1040, LLC, filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 23-11240) on Aug. 24, 2023. In the petitions signed by T. Scott Avila, chief restructuring officer, each Debtor disclosed between $50 million and $100 million in both assets and liabilities. Judge Thomas M. Horan oversees the cases. The Debtors tapped Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP as bankruptcy counsel; and Paladin Management Group, LLC as restructuring advisor. Omni Agent Solutions, Inc., is the claims, noticing and administrative agent. On Sept. 15, 2023, the Office of the United States Trustee appointed an official committee of unsecured creditors. The Committee tapped Morris, Nichols, Arsht & Tunnell LLP as its counsel. ANBA TONEL: Nat Wasserstein Named Subchapter V Trustee ------------------------------------------------------ The U.S. Trustee for Region 2 appointed Nat Wasserstein, Esq., at Lindenwood Associates, LLC as Subchapter V trustee for Anba Tonel Lounge and Restaurant Inc. Mr. Wasserstein will be paid an hourly fee of $525 for his services as Subchapter V trustee and will be reimbursed for work related expenses incurred. Mr. Wasserstein declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Nat Wasserstein, Esq. Lindenwood Associates, LLC 328 North Broadway, 2nd Foor Upper Nyack, New York 10960 Telephone: (845) 398-9825 Facsimile: (212) 208-4436 Email: nat@lindenwoodassociates.com About Anba Tonel Lounge and Restaurant Anba Tonel Lounge and Restaurant, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43906) on August 13, 2025, with up to $50,000 in assets and $100,001 to $500,000 in liabilities. Judge Elizabeth S. Stong presides over the case. ANGLIN CONSULTING: Seeks Cash Collateral Access ----------------------------------------------- Anglin Consulting Group, Inc. asks the U.S. Bankruptcy Court for the District of Columbia for authority to use cash collateral and provide adequate protection. The Debtor filed for Chapter 11 relief to prevent the transfer of its interest in Blackfish Federal, LLC and preserve its assets for reorganization and creditor repayment. Anglin, founded and wholly owned by Yashieka Anglin, purchased Blackfish in December 2023 using $5 million from GovCon, $9.5 million from GovCon II, and $7.5 million in seller financing. As part of this transaction, the Debtor pledged its interest in Blackfish and allowed Blackfish to issue non-voting redeemable shares to the lenders, who also required consent rights over bankruptcy filings. On April 21, 2025, judgments totaling over $15 million were entered against the Debtor, Blackfish, and Ms. Anglin in the Circuit Court for Fairfax County, Virginia, and garnishments were issued against Blackfish, jeopardizing payroll for its 173 employees and management fees to Anglin. On August 8, the state court entered a temporary restraining order requiring immediate transfer of Anglin's Blackfish shares to the GovCon entities after Ms. Anglin failed to appear at a hearing due to a medical issue. However, the TRO did not reduce the outstanding debt. Because the GovCon entities are not 8(a) certified, the U.S. Small Business Administration initiated the process of canceling Blackfish's government contracts, threatening both companies' viability. The Debtor asserts that its only significant asset is its interest in Blackfish and that other assets are valued at less than $200,000. As of the petition date, the Debtor owes approximately $400,000 to the SBA under an Economic Injury Disaster Loan (EIDL), secured by a first-priority blanket lien perfected by a UCC-1 filing. While GovCon and GovCon II claim additional security interests, the Debtor contends these claims are unsecured due to the low value of its other assets. The Debtor seeks to use its cash collateral for at least 14 days to meet payroll and necessary operational expenses, as detailed in the budget. To protect the SBA's secured interest, the Debtor offers adequate protection in the form of replacement liens on post-petition assets and agrees to provide regular financial reports and disclosures to the SBA. The Debtor also includes a request for expedited consideration, due to the urgent need to avoid irreparable harm to the business and its employees. A copy of the motion is available at https://urlcurt.com/u?l=qfV6Wz from PacerMonitor.com. About Anglin Consulting Group Inc. Anglin Consulting Group Inc. is a professional services firm specializing in management consulting, financial and healthcare solutions, and operational support for public and private organizations. The Company provides certified American Sign Language (ASL) interpretation services, ensuring accessibility and effective communication for clients who are deaf or hard of hearing. Anglin serves a diverse client base including federal, state, and local government agencies, commercial businesses, and non-profits, leveraging its SBA 8(a), Economically Disadvantaged Woman-Owned, Service-Disabled Veteran-Owned, and HUBZone certifications to deliver comprehensive, inclusive solutions. Anglin Consulting Group Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.C. Case No. 25-00328) on August 11, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $10 million and $50 million. The Debtor is represented by Justin P. Fasano, Esq. at McNamee Hosea, P.A. ANTONIO MUNOZ: Frances Smith Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 6 appointed Frances Smith, Esq., at Ross, Smith & Binford, PC, as Subchapter V trustee for Antonio Munoz Aserradero, LLC. Ms. Smith will be paid an hourly fee of $475 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Smith declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Frances A. Smith, Esq. Ross, Smith & Binford, PC 700 N. Pearl Street, Ste. 1610 Dallas, TX 75201 Phone: 214-593-4976 Fax: 214-377-9409 Email: frances.smith@rsbfirm.com About Antonio Munoz Aserradero LLC Antonio Munoz Aserradero, LLC is a Texas-based company engaged in sawmills and wood preservation activities. Antonio Munoz Aserradero sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Texas Case No. 25-60480) on August 7, 2025. In its petition, the Debtor reported estimated assets between $50,000 and $100,000 and estimated liabilities between $1 million and $10 million. The Debtor is represented by Michael E. Gazette, Esq., at Law Offices of Michael E. Gazette. APPLIED POWDERCOAT: Court OKs Deal to Use FBOL's Cash Collateral ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California approved a stipulation allowing Applied Powdercoat, LLC to use the cash collateral of senior lender First Bank of the Lake. The stipulation authorizes the Debtor to use up to $100,000 in cash collateral for payroll and acquisition of inventory pursuant to its July budget and August budget, and may use any remaining authorized cash collateral, up to the $100,000, for any other items set forth in the budget. The $100,000 use limit of cash collateral may be increased by First Bank through a written stipulation signed by the bank and the Debtor. The Debtor may use cash collateral with a 15% variance to the July budget, with any unused weekly budget carrying over to the subsequent week, although no use of cash collateral is authorized after August 31, unless (i) another written stipulation is filed with the court without a need for further order, or (ii) further use of cash collateral is authorized pursuant to further order of the court. As adequate protection, First Bank will be granted post-petition security interests and replacement liens on all of the Debtor's assets, including accounts receivable and inventory, and on its debtor-in-possession accounts, acquired after the petition date. The replacement liens will have the same priority, validity and extent as the senior lender's pre-bankruptcy security interests and do not apply to any avoidance claims. The court order directed the Debtor to work with First Bank to explore valuation and potential asset sale and pursue an exit strategy that maximizes recovery for creditors through liquidation, going-concern sale, or a Subchapter V plan under Section 1191 of the Bankruptcy Code. About Applied Powdercoat LLC Applied Powdercoat, LLC is an Oxnard-based manufacturing firm specializing in powder coating, sandblasting, and silk screening services. Founded in 1989 and operating from a state-of-the-art 30,000 sq. ft. facility at 3101 Camino del Sol, the Company serves industrial, aerospace, defense, custom fabrication, automotive restoration, and commercial clients throughout Southern California. Applied Powdercoat sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-10762) on June 6, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Judge Ronald A. Clifford III handles the case. The Debtor is represented by Derrick Talerico, Esq., at Weintraub Zolkin Talerico & Selth, LLP. ARROW PHARMACY: Seeks Chapter 11 Bankruptcy in Texas ---------------------------------------------------- Arrow Pharmacy Holdings LLC has filed for Chapter 11 bankruptcy protection in the Southern District of Texas, alongside 13 affiliated entities that submitted joint petitions in the same court. The company's filing lists assets valued between $1 million and $10 million, against liabilities ranging from $10 million to $50 million. About Arrow Pharmacy Holdings LLC Arrow Pharmacy Holdings LLC is a pharmaceutical company operating retail pharmacies across multiple states including Connecticut, Massachusetts, New York, Pennsylvania, Florida, Maryland, Texas, and Virginia. It specializes in retail pharmacy operations with potential focus on institutional or long-term care pharmacy services. It specializes in retail pharmacy operations with potential focus on institutional or long-term care pharmacy services. Arrow Pharmacy Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-34700) on August 13, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. The Debtor is represented by Patrick J. Potter, Esq. at Pillsbury Et Al. ARTERA SERVICES: Moody's Lowers CFR to Caa1, Outlook Negative ------------------------------------------------------------- Moody's Ratings downgraded Artera Services, LLC's (Artera) Corporate Family Rating to Caa1 from B3, Probability of Default Rating to Caa1-PD from B3-PD. The ratings for its backed senior secured first-lien revolving credit facility, backed senior secured first-lien term loan, and backed senior secured first-lien notes were also downgraded to Caa1 from B3. Outlook remains negative. Governance considerations under Moody's ESG framework, particularly financial strategy and risk management as well as management credibility and track record, are key drivers of the rating action. RATINGS RATIONALE Artera has significantly underperformed relative to the original expectations set during the 2024 refinancing. The underperformance in 2024 was partly due to delayed rate case approvals by state utility regulators and softness in gas transmission. The underperformance in 2025 to date has been primarily driven by adverse weather conditions in Q1, regulatory headwinds and customer loss in the Northeast. While Artera does not face near-term refinancing risk and has adequate liquidity, its credit metrics are expected to remain weak. Moody's forecasts its Moody's adjusted leverage to be in the 10.5x range over the next 12 to 18 months. Although the business is experiencing positive momentum in certain geographies outside the Northeast, Moody's do not expect this to result in a near-term EBITDA uplift significant enough to restore its leverage profile to levels originally anticipated at the time of the 2024 refinancing transaction.. Additionally, Artera has incurred significant charges, and cash EBITDA continues to deviate meaningfully from the company-reported PF Adjusted EBITDA. Beyond one-time expenses related to the 2024 refinancing transaction, the company has also incurred substantial costs related to restructuring and operational improvement initiatives. Management has indicated that the bulk of these non-recurring expenses should largely be phased out by the end of 2025, which would allow for convergence between cash and Adjusted EBITDA. Moody's believes this development would be crucial for Artera to begin generating positive free cash flow. If the company is unable to achieve this EBITDA convergence, ongoing negative free cash flow could begin to erode its liquidity cushion. The business is supported by positive medium to long term industry fundamentals as gas utilities focus on replacing aging infrastructure and continue to outsource engineering and construction services to contract service providers. The reoccurring maintenance, repair, and upgrade services for gas distribution networks account for over 85% of Artera's sales, a significant portion are covered under master service agreements ("MSAs"), providing some revenue stability. Artera's limited exposure, at approximately 20%, to projects under fixed-price contracts mitigates some margin volatility risk. The rating also reflects Artera's adequate liquidity and takes into account its debt maturity profile. Outlook The negative outlook reflects Moody's expectations that credit metrics will continue to be weak over the next 12 to 18 months. The outlook also incorporates the risk of potential deterioration to the liquidity profile due to continued negative free cash flow generation. Liquidity Artera has adequate liquidity consisting of $103 million cash on hand as of March 2025, $184 million of remaining availability (net of outstanding LCs) on its $211 million revolver, and $300 million of remaining availability on its AR securitization facility (net of outstanding LCs). The revolver has a max first lien leverage ratio covenant of 9.0x, which will be tested when revolver utilization exceeds the greater of $100 million and 40% of the revolver commitment. Structural Considerations Artera's first lien senior secured credit facilities, which include the revolver due February 2029 and first lien term loan due February 2031, are rated Caa1, which is commensurate with the Caa1 corporate family rating. The company's senior secured notes, which are on a pari passu basis as the first lien senior secured credit facilities, are also rated Caa1. The ratings reflect the junior-ranking position of the first lien secured credit facilities and notes with respect to the $350 million securitization facility, which is secured on a first lien basis by the company's accounts receivables. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Artera's ratings could be upgraded if the company's Moody's adjusted leverage sustains below 6.0x, EBITDA / Interest Expense above 2x, and consistently generates positive free cash flow. Artera's ratings could be downgraded if financial performance continues to deteriorate, and Moody's adjusted leverage sustains above 7.5x, EBITDA / Interest Expense below 1.0x, and it consistently generates negative free cash flow. A material reduction in liquidity would also result in a downgrade. Profile Headquartered in Atlanta, Georgia, Artera Services, LLC is a provider of repair, maintenance, replacement, and installation services to the distribution and small transmission segment of the gas utility industry. The company operates primarily in the East, South, Southwest, and Midwest regions of the United States. Its customers are primarily natural gas utilities and midstream operators. The company generated revenues of about $2.2 billion for the last twelve months ending March 2025. Clayton, Dubilier & Rice ("CD&R") acquired the majority ownership of the company in 2018. The principal methodology used in these ratings was Construction published in April 2025. 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. ASCEND PERFORMANCE: Hires Hilco as Equipment Lease Advisor ---------------------------------------------------------- Ascend Performance Materials Holdings Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Hilco Real Estate, LLC as equipment lease advisor. a. meet with the Debtors to ascertain the Debtors' goals, objectives and financial parameters; b. mutually agree with the Debtors with respect to a strategic plan for restructuring the Leases (the "Strategy"); c. negotiate the terms of restructuring agreements with the applicable counterparties to the Leases, in accordance with the Strategy; d. provide written reports periodically to the Debtors regarding the status of such negotiations; and e. assist the Debtors in closing the pertinent Lease restructuring agreements. The firm will be paid a monthly fee of $20,000 for the first five months of the engagement. Each Monthly Fee shall be due and payable in advance upon the first day of each calendar month, except with respect to the first Monthly Fee, which shall be due and payable upon execution of the Services Agreement. Each Monthly Fee shall be earned in full when due and nonrefundable; provided that each Monthly Fee paid to Hilco hereunder shall be credited against and subtracted from any Restructured Lease Savings Fees that become payable pursuant to the Services Agreement. Mr. Kaup disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Eric W. Kaup Hilco Real Estate, LLC 5 Revere Drive, Suite 410 Northbrook, IL 60062 Tel: (855) 755-2300 About Ascend Performance Materials Holdings Inc. The Debtors, together with their non-Debtor affiliates, are one of the largest, fully-integrated producers of nylon, a plastic that is used in everyday essentials, like apparel, carpets, and tires, as well as new technologies, like electric vehicles and solar energy systems. Ascend's business primarily revolves around the production and sale of nylon 6,6 (PA66), along with the chemical intermediates and downstream products derived from it. Common applications of PA66 include heating and cooling systems, air bags, batteries, and athletic apparel. Headquartered in Houston, Texas, Ascend has a global workforce of approximately 2,200 employees and operates eleven manufacturing facilities that span the United States, Mexico, Europe, and Asia. Ascend Performance Materials Holdings Inc. and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90127) on April 21, 2025. In the petitions signed by Robert Del Genio, chief restructuring officer, the Debtors disclosed $1 billion to $10 billion in both estimated assets and liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Bracewell LLP and Kirkland & Ellis LLP as counsel; PJT Partners, Inc. as investment banker; FTI Consulting, Inc. as restructuring advisor; and Deloitte LLP as tax advisor. Epiq Corporate Restructuring LLC is the Debtors' claims, noticing, and solicitation agent. ASSURE AFFORDABLE: Files Emergency Bid to Use Cash Collateral ------------------------------------------------------------- Assure Affordable Homes Inc. asks the U.S. Bankruptcy Court for the Eastern District of Michigan for authority to use cash collateral and provide adequate protection. The Debtor is a Detroit-based property holding company that manages multiple properties, including the Schaefer and Joy Road multi-unit apartment complexes, along with properties on Livernois and East McNichols. The purpose of the bankruptcy filing is to complete the sale of the Schaefer and Joy properties, preserve substantial equity, avoid forfeiture of real estate interests, and maximize creditor recovery through a structured reorganization. Schaefer and Joy were acquired on land contracts that included balloon payments. These payments went unmet, triggering forfeiture actions and consent judgments that were set to expire on the same day the bankruptcy petition was filed. The Debtor argues that under 11 U.S.C. section 108(b), the filing extends the redemption period to October 7. The Debtor seeks permission to use $47,994 immediately under an interim budget, and up to $439,548 through December under a broader budget, to maintain operations and make adequate protection payments to key creditors. These payments include $996 to the U.S. Small Business Administration, $2,590 to Credibly, $34,812 to Penrod Faust, LLC, and $46,904 to Schaefer Apartment Holdings, LLC. While the SBA and Credibly are recognized as having all-assets UCC liens, the Debtor disputes that Penrod Faust and Schaefer Apartment Holdings have valid security interests in rental income, noting the absence of recorded assignments of rents or court orders. Nonetheless, the Debtor acknowledges their likely entitlement to adequate protection. The Debtor maintains that use of cash collateral is critical to preserving millions of dollars in equity, avoiding business interruption, and protecting creditor interests. Without it, the Debtor risks losing insurance coverage, missing tax and mortgage payments, and potentially forcing liquidation, which would harm all stakeholders. The Debtor argues that its secured creditors are adequately protected through the continued operation and maintenance of the properties, proposed cash payments, and substantial equity cushions. The Schaefer property is under contract for $2.9 million, with only $2.15 million owed, while Joy is under contract for $2.05 million, with $1.5 million owed. Additionally, the Livernois property is owned free and clear with $1.5 million in equity, and the East McNichols property is being renovated for resale, with an estimated $185,000 in value. A copy of the motion is available at https://urlcurt.com/u?l=KHQ6Af from PacerMonitor.com. About Assure Affordable Homes Inc. Assure Affordable Homes Inc. specializes in third-party real estate management and provides professional property appraisal services. Assure Affordable Homes Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-47953) on August 7, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Mark A. Randon handles the case. The Debtor is represented by Alexander J. Berry-Santoro, Esq. at MAXWELL DUNN PLC. AVALON SUGAR: Seeks to Sell Sugarland Property at Auction --------------------------------------------------------- Avalon Sugar Land Hospitality LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to sell, Property at auction, free and clear of liens, claims, interests, and encumbrances. The Debtor, with the assistance of its broker, has run a marketing process for several months for the Property. The final deadline for submission of bids for the Property was August 8, 2025. The Debtor is a Texas limited liability corporation that owns a property known as Hampton Hotel located at 218 Promenade Way, Sugarland, Texas, 77479 (Property). The Property consists of a Hampton Inn & Suites by Hilton at 218 Promenade Way, Sugarland, Texas 77478. The Property includes 122 guest rooms. The Debtor determined in its business judgement that employing a broker to market and sell the entire Property in as-is condition is the best means for liquidating the Property in an efficient and economic fashion that will maximize the value of the Property. The Debtor believes that an auction to sell the entire Property in as-is condition is the best means for liquidating the Property in an efficient and economic fashion that will maximize the value of the Property. The Lender does not oppose an auction. All requests for diligence related to the Property shall be directed by potential bidders to the broker. Upon execution of a confidentiality agreement, bidders can access due diligence materials through. The Auction shall be held at the Court’s earliest availability. The Auction shall be conducted in open court. The opening bid at the auction is $10,000,000. The high bidder at the auction shall be required to submit a non-refundable deposit equal to 10% of the purchase price at the conclusion of the auction, provided that any bidder submitting a credit bid shall not be required to submit such a deposit. Bids must have an outside closing date of no later than 60 days following the auction. By participating in the auction, each Qualified Bidder consents to the jurisdiction of this Court to adjudicate any dispute regarding the auction or the sale of the Property. The Debtor believes that the proposed bid procedures will provide certainty and clarity to prospective bidders on the sale process and will encourage bidding by qualified parties. About Avalon Sugar Land Hospitality LLC Avalon Sugar Land Hospitality, LLC is a single-asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)) that owns the Hampton Inn in Sugar Land, Texas. Avalon Sugar Land Hospitality sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-31802) on March 31, 2025. In its petition, the Debtor reported total assets of $19,375,000 and total debts of $13,851,944. Judge Eduardo V. Rodriguez oversees the case. Richard L. Fuqua, II, Esq., at Fuqua & Associates, PC is the Debtor's legal counsel. International Bank of Commerce, as lender, is represented by: Eric M. English, Esq. Michael B. Dearman, Esq. Porter Hedges, LLP 1000 Main St., 36th Floor Houston, TX 77002 Tel: (713) 226-6000 eenglish@porterhedges.com mdearman@porterhedges.com AVON PRODUCTS: Nears Bankruptcy Plan Approval Despite Pushback -------------------------------------------------------------- Angelica Serrano-Roman of Bloomberg Law reports that a bankruptcy judge is poised to approve Avon Products Inc.'s Chapter 11 plan, overruling most objections raised by the company's insurers. In an opinion issued Thursday, August 21, 2025, Judge Craig T. Goldblatt of the U.S. Bankruptcy Court for the District of Delaware determined the plan could be confirmed with only "modest" revisions, without the need to re-solicit creditor votes. Avon, owned by Natura & Co., filed the plan earlier this 2025 to establish a trust for managing assets and claims. The company, which sold its U.S. operations in 2016, sought bankruptcy protection last year to address personal injury liabilities, the report states. About AIO US, Inc. AIO US Inc., Avon Products Inc. and some of its affiliates are manufacturers and marketers of beauty, fashion, and home products with operations and customers across the globe. AIO US and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11836) on Aug. 12, 2024. In the petition filed by Philip J. Gund as chief restructuring officer, AIO US disclosed $1 billion to $10 billion in assets and debt. Richards, Layton & Finger, P.A. and Weil, Gotshal & Manges LLP are counsel to the Debtors. Ankura Consulting Group LLC serves as restructuring advisor to the Debtors. Rothschild & Co US Inc is the Debtors' investment banker and financial advisor. Epiq Corporate Restructuring LLC acts as claims and noticing agent to the Debtors. AZZ INC: Moody's Upgrades CFR to 'Ba2', Outlook Remains Stable -------------------------------------------------------------- Moody's Ratings upgraded AZZ Inc.'s ("AZZ") Corporate Family Rating to Ba2 from Ba3, its Probability of Default Rating to Ba2-PD from Ba3-PD and the rating on the company's senior secured bank credit facilities to Ba2 from Ba3. The Speculative Grade Liquidity rating of SGL-2 is unchanged. The ratings outlook remains stable. "The upgrade of AZZ's ratings reflects the use of free cash flow and proceeds from the sale of the AVAIL JV to significantly reduce debt, which has resulted in stronger sustained credit metrics," said Michael Corelli, Moody's Ratings' Senior Vice President and lead analyst for AZZ Inc. Governance considerations are a driver of this rating action related to the company's relatively conservative financial strategy and risk management. The company has a publicly stated net leverage target of 1.5x-2.5x and has focused on using free cash flow and asset sale proceeds to pay down debt and reduce financial leverage. RATINGS RATIONALE AZZ Inc.'s Ba2 corporate family rating reflects its moderate leverage, strong profit margins, consistent free cash flow, recent debt reduction, and solid market position. AZZ believes it is the leading independent domestic provider of hot-dipped galvanizing of fabricated steel and the leading independent provider of protective and decorative coatings of steel and aluminum coil. Moody's anticipates the company will continue to produce historically robust operating results over the next 12-18 months as it continues to benefit from good end market demand. AZZ's rating is constrained by its somewhat small scale versus higher rated companies, its moderate interest coverage ratio, as well as its reliance on cyclical construction activity. The rating also incorporates the risk of further debt-financed deals considering the company's acquisitive history and plans to continue to grow through acquisitions, as well its focus on increasing shareholder returns. AZZ's operating performance is expected to remain strong in fiscal 2026 (ends February 2026) and Moody's anticipates the company will generate Moody's adjusted EBITDA in the range of $365 million - $380 million versus $343 million in fiscal 2025. This growth will continue to be driven by good demand from the construction and utilities sectors, improved product pricing and the EBITDA contribution from acquisitions as the company has restarted its bolt-on acquisition program. AZZ should continue to generate solid free cash flow in fiscal 2026 supported by stronger earnings and lower interest costs due to the recent substantial debt pay down and multiple repricings of its term loan interest rate. The company has substantially paid down its borrowings with free cash flow and asset sales over the last few years and accelerated this process by utilizing the $273 million of proceeds from the AVAIL JV and free cash flow to further reduce debt by $285 million in Q1 of fiscal 2026. This distribution resulted from the sale of the JV's Electrical Products Group business. The company had previously paid down debt with the $228 million proceeds received when the JV was formed in September 2022. As a result, the company has reduced its term loan debt to $535 million as of May 2025 from $1.3 billion when it completed the Precoat Metals acquisition in May 2022. This has led to the company's Moody's adjusted leverage ratio (debt/EBITDA) declining to only 1.8x from around 4.0x when Precoat was acquired. Moody's do not expect further material debt reduction during the remainder of fiscal 2026 as the company has achieved its net leverage target ratio of 1.5x-2.5x and has shifted its focus to bolt-on acquisitions and shareholder returns. Nevertheless, Moody's anticipates it will maintain credit metrics commensurate with the Ba2 corporate family rating. AZZ's Speculative Grade Liquidity rating of SGL-2 reflects Moody's expectations it will maintain a good liquidity profile. The company had $3.0 million of cash and $306.3 million of availability on its $400 million senior secured revolving credit facility as of May 2025. There was $80 million of outstanding borrowings and $13.7 million of letters of credit issued on this facility which matures in May 2027. The company's credit facilities have a maximum total net leverage covenant of 4.5x. The company's actual leverage ratio was 1.7x as of May 2025 based on the covenant calculation. Moody's expects the company to easily remain in compliance with this covenant. The company entered into a three-year $150 million accounts receivable securitization facility in July 2025. The proceeds were used to pay down debt and will result in lower interest costs, as the interest rate is lower than the rate on the company's revolver and term loan. AZZ's senior secured credit facilities, including a $400 million secured revolving credit facility and $535 million term loan B, have a rating of Ba2. This is commensurate with the corporate family rating since it accounts for the majority of the debt in the company's capital structure. The stable ratings outlook reflects Moody's expectations for AZZ to generate improved operating results over the next 12 to 18 months and maintain credit metrics that are commensurate with its rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's would consider an upgrade of AZZ's ratings if it enhances its scale and diversity while sustaining a leverage ratio (debt/EBITDA) below 3.0x, interest coverage (EBITA/Interest) above 7.5x and retained cash flow above 25% of net debt. AZZ's ratings could be downgraded if its leverage ratio is sustained above 4.0x, interest coverage below 5.0x and retained cash flow below 20% of net debt. AZZ Inc., headquartered in Fort Worth, Texas, is a leading provider of hot-dip galvanizing and metal coating solutions. The company's Metal Coatings segment is a leading provider of metal finishing solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating to the North American steel fabrication, industrial, construction, OEM, renewable/utility, petrochemical and other sectors. The Precoat Metals segment is a leading provider of aesthetic and corrosion protective coatings and related value-added services for steel and aluminum coil, primarily serving the construction, appliance, heating, ventilation, and air conditioning (HVAC), container, transportation and other end markets in the United States. AZZ generated revenues of $1.6 billion for the LTM period ended May 2025. The principal methodology used in these ratings was Manufacturing published in September 2021. AZZ's Ba2 rating is two notches below the scorecard-indicated outcome based on its financials for the LTM period ended May 31, 2025. The difference reflects the company's moderate scale and somewhat limited geographic and end market diversity and its reliance on the cyclical construction sector. BAXSTO LLC: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Baxsto LLC PO Box 302857 Austin, TX 78703-0048 Business Description: Baxsto LLC, based in Austin, Texas, manages and owns undivided mineral interests in Howard and Borden Counties. Formed in 2014, the Company leases these mineral rights to oil and gas operators for the extraction of oil, gas, limestone, gravel, coal, sulfur, and other minerals. Chapter 11 Petition Date: August 21, 2025 Court: United States Bankruptcy Court Western District of Texas Case No.: 25-11291 Judge: Hon. Shad Robinson Debtor's Counsel: Stephen W Sather, Esq. BARRON & NEWBURGER, P.C. 7320 N. MoPac Expressway 400 Austin, TX 78731 Tel: (512) 476-9103 x220 E-mail: ssather@bn-lawyers.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Ashley Stout as manager. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/6OBV7HQ/Baxsto_LLC__txwbke-25-11291__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Equity Bank $12,000,000 7701 E Kellogg Dr Ste 100 Wichita, KS 67207-1713 2. Lea County State Bank Main Guaranty $2,000,000 1017 N Turner St Hobbs, NM 88240-5150 3. Valley Bank of Commerce $1,077,586 c/o John Burson 217 W. 2nd Roswell, NM 88201 4. Lea County State Bank Judgment $729,621 1017 N Turner St Hobbs, NM 88240-5150 5. GM Financial Car Loan $115,000 Attn: Account Payable Po Box 1630 Fort Worth, TX 76101-1630 6. Reeves CAD $86,000 403 S Cypress St Pecos, TX 79772-4047 7. Spencer Fane $20,404 Po Box 872037 Kansas City, MO 64187-2037 8. American Express Platinum Credit Card $17,375 PO Box 650448 Dallas, TX 75265-0448 9. Texas Comptroller of Public Franchise Tax $14,866 Accounts PO Box 149348 Austin, TX 78720 10. Snell Law Firm Legal Services $14,154 404 W 13th St Austin, TX 78701-1825 11. Dimmit County Tax Office Ad Valorem Taxes $2,315 Dimmit County Courthouse Annex 212 N 4th St Carrizo Spgs, TX 78834-3242 12. Ector County Ad Valorem Taxes $1,514 Appraisal District 1301 E 8th St Odessa, TX 79761-4722 13. Point Energy Partners Outstanding $278 640 Taylor St Ste 1850 Balance Fort Worth, TX 76102-4822 Tel: (682) 207-4160 14. Howard County Tax Office Ad Valorem Taxes $156 315 Main Street Suite D Po Box 1111 Big Spring, TX 79721-1111 15. Burleson County Tax Office Ad Valorem Taxes $137 100 W Buck Street Suite 202 Caldwell, TX 77836 16. Hockley County Ad Valorem Taxes $28.99 624 Avenue H Ste 101 Levelland, TX 79336-4539 17. Culberson CAD $22 Po Box 550 Van Horn, TX 79855-0550 18. Caldwell County Ad Valorem Taxes $19.84 Appraisal District Po Box 900 Lockhart, TX 78644-0900 19. Andrews County Tax Office Ad Valorem Taxes $17.14 210 NW 2nd St Andrews, TX 79714 20. Fisher CAD Ad Valorem Taxes $10.12 107 N 1st Street Roby, TX 79543 BB SERVICER: Section 341(a) Meeting of Creditors on September 18 ---------------------------------------------------------------- BB Servicer LLC filed for Chapter 11 bankruptcy protection on August 13, 2025, in the Eastern District of New York. The company disclosed assets estimated at $10 million to $50 million and liabilities between $50 million and $100 million. Court documents list between 200 and 999 creditors, and the petition states that funds will be available for distribution to unsecured creditors during the bankruptcy process. A meeting of creditors filed by United States Trustee under Section 341(a) to be held on September 18, 2025 at 02:00 PM at USA Toll-Free (888) 330-1716, USA Caller Paid/International Toll (713) 353-7024, Access Code 3913464. About BB Servicer LLC BB Servicer LLC provides operational support and services in the telecommunications sector. BB Servicer LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-73096) on August 1, 2025. In its petition, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $50 million and $100 million. Honorable Bankruptcy Judge Alan S. Trust handles the case. The Debtor is represented by Tracy L. Klestadt at Klestadt Winters Jureller Southard & Stevens, LLP. BEACON POINT: Seeks Chapter 11 Bankruptcy in Florida ---------------------------------------------------- Beacon Point Recovery Center LLC has filed for Chapter 11 bankruptcy protection in the Southern District of Florida. The company reported assets between $50 million and $100 million against liabilities of $10 million to $50 million, with City National Bank of Florida listed as the largest unsecured creditor holding a claim exceeding $20.5 million. The filing is part of a larger restructuring involving numerous affiliated entities including multiple recovery centers and counseling facilities across several states. About Beacon Point Recovery Center LLC Beacon Point Recovery Center LLC is an addiction treatment and recovery services provider operating in Florida and Pennsylvania. It operates outpatient care centers focused on substance abuse treatment, with its principal place of business in Lake Worth, FL and principal assets located in Philadelphia, PA. Beacon Point Recovery Center LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-19354) on August 13, 2025. In its petition, the Debtor reports estimated assets between $50 million and $100 million and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Mindy A. Mora handles the case. The Debtor is represented by Bradley S. Shraiberg, Esq. at Shraiberg Page PA. BELLWETHER INC: Seeks to Sell Equipment at Online Auction --------------------------------------------------------- Bellwether, Inc. seeks permission from the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, to sell Equipment via online commercial auction, free and clear of liens, claims, interests, and encumbrances. While Debtor has continued to operate, the Debtor has decided that selling the equipment of the Debtor will result in efficient and quick process for settling the creditor claims of the Debtor. The Debtor proposes to sell the Equipment, attached Exhibit A, through commercial online auction. The Debtor hires the auctioneer, The Equipment Hub Auctions, LLC, to market and conduct auctions. The commercial auction will be scheduled upon an order authoring the transaction contemplated. The Debtor estimates the fair market value of the equipment to be sold is $200,000. The agreement provides that HUB shall be 10% of the total hammer price of the entire auction. The Auctioneer will charge 18% Buyer's Premium of the Gross Proceeds for the Assets which is a fee charged in additional to the sales price and paid by the buyer. The agreement provides that HUB guarantees Debtor at least $125,000 regardless of sales performance. Debtor anticipates that three creditors are impacted by the sale contemplated by Debtor. Unless another party holds a purchase-money security interest in the item sold, Debtor believes Ameris Bank holds a first priority lien in the subject equipment to be sold. Unless another party holds a purchase-money security interest in the item sold, Debtor believes US Bank holds a second priority lien in the subject equipment to be sold. Unless another party holds a purchase-money security interest in the item sold, Debtor believes US Small Business Administration holds a third priority lien in the subject equipment to be sold. HUB will conduct a commercial online auction with a guaranteed payment of $125,000 to the Debtor under the terms set forth in the proposed agreement attached hereto. HUB will be paid a commission equal to 10% percent of the total hammer price at the auction plus a Buyer's Premium payable by the purchaser at closing directly to HUB. Upon completion of the auction, the Debtor shall cause all net proceeds after payment of normal, customary and necessary commissions, and taxes to be remitted to the Debtor's counsel to be held in escrow. The Debtor has conducted an investigation of the Equipment and has evaluated its option regarding ongoing operations versus its sale. As a result thereof, the Debtor believes that the sale of commercial online auction, represents the best interests and course of action for the estate. About Bellwether, Inc. Bellwether, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-56852) on July 1, 2024, with as much as $1 million in both assets and liabilities. Judge Lisa Ritchey Craig oversees the case. The Debtor is represented by: Joseph Chad Brannen, Esq. The Brannen Firm, LLC Tel: 770-474-0847 Email: chad@brannenlawfirm.com BESPOKE CONSTRUCTION: U.S. Trustee Unable to Appoint Committee -------------------------------------------------------------- The U.S. Trustee for Region 10 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Bespoke Construction, LLC. About Bespoke Construction LLC Bespoke Construction, LLC is a general contractor based in Indianapolis, Indiana, that provides residential and state-funded construction services, including universal design renovations, custom millwork, ADA-compliant modifications, and project management. It serves clients through tailored design and building solutions with a focus on accessibility, craftsmanship, and functional improvements. Bespoke Construction sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 25-04181) on July 16, 2025, listing $1,425,361 in total assets and $5,379,966 in total liabilities. Robert Cooper, authorized representative of the Debtor, signed the petition. Judge James M. Carr oversees the case. Jeffrey Hester, Esq., at Hester Baker Krebs, LLC, represents the Debtor as legal counsel. BEXIN REALTY: Court Extends Cash Collateral Access to Oct. 28 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York issued its seventh interim order extending Bexin Realty Corporation's authority to use its lender's cash collateral. The seventh interim order authorized the company to use the cash collateral of Cathay Bank through October 28 to pay the expenses set forth in its budget, with a 10% variance. Cathay Bank also holds a senior priority lien on substantially all of the company's assets, including cash, rents, rents receivables and leases, which constitute cash collateral. The bank claims it was owed an amount not less than $17,395,111.73 as of the petition date. As protection, Cathay Bank will receive a monthly payment of $20,000 and will be granted replacement security interests in and liens on all property of the company to the extent and with the same priority as its pre-bankruptcy lien. To the extent of any diminution in value of its collateral, Cathay Bank will have a superpriority administrative expense claim Bexin's authority to use cash collateral will terminate if certain events occur, including a default under the order; a conversion of the company's Chapter 11 case to one under Chapter 7; or the appointment of a Chapter 11 trustee. A final hearing is scheduled for October 28. About Bexin Realty Corporation Bexin Realty Corporation is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)). Bexin Realty filed Chapter 11 petition (Bankr. S.D.N.Y. Case No. 24-12080) on November 27, 2024, listing between $10 million and $50 million in both assets and liabilities. Bahram Benaresh, president of Bexin Realty, signed the petition. Judge Martin Glenn handles the case. The Debtor is represented by Jonathan S. Pasternak, Esq., at Davidoff Hutcher & Citron, LLP. Cathay Bank, as lender, is represented by: Conrad K. Chiu, Esq. Amanda Schaefer, Esq. Pryor Cashman LLP 7 Times Square New York, NY 10036-6569 Telephone: (212) 421-4100 Facsimile: (212) 326-0806 cchiu@pryorcashman.com aschaefer@pryorcashman.com BIOTACTICS INC: Has Deal on Cash Collateral Access -------------------------------------------------- Biotactics, Inc. and CDC Small Business Finance advised the U.S. Bankruptcy Court for the Central District of California, San Fernando Valley Division, that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. The parties agree that the Debtor may use cash collateral through the date of plan confirmation. This follows a prior agreement that allowed use through April 30 and builds upon the court-approved arrangement from January. The case stems from a pre-petition SBA loan issued by CDC to the Debtor in 2020, originally in the amount of $250,000, and later modified to $159,975.66. CDC filed a secured proof of claim for $108,405.50. This loan is secured by a Commercial Security Agreement, granting CDC a lien on a wide range of the Debtor's personal property, including inventory, equipment, accounts, and general intangibles, with the lien perfected via a UCC-1 filing. Under the new stipulation, CDC consents to the Debtor's continued use of cash collateral for the payment of ordinary and necessary post-petition business expenses. As adequate protection, CDC will receive: 1. A replacement lien on all post-petition assets and revenue, retroactive to the petition date and valid without further filings, 2. Monthly adequate protection payments of $2,690, beginning June 1, 2025, and due on the 1st of each subsequent month, 3. A priority administrative expense claim under 11 U.S.C. sections 503(b), 507(a)(2), and 507(b), limited to any diminution in value of CDC's collateral due to post-petition use. The stipulation bars use of cash collateral for payments to insiders unless the Debtor satisfies Bankruptcy Code and Local Rule 2014-1 requirements, and expressly prohibits insider draws or shareholder distributions. The agreement includes provisions for default: if the Debtor fails to comply, CDC may terminate its consent following a 15-day notice period. Each default notice will also incur a $100 fee to be paid by the Debtor. The stipulation remains in effect until the earliest of plan confirmation, case dismissal, conversion to Chapter 7, appointment of a trustee, or an uncured default. It preserves the parties' rights to seek modification or enforcement, allows CDC to pursue further relief such as motions to dismiss or lift the stay, and mandates ongoing financial reporting from the Debtor. A copy of the motion is available at https://urlcurt.com/u?l=rKXNSg from PacerMonitor.com. About Biotactics Inc. Biotactics, Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12038) on Dec. 6, 2024, with up to $500,000 in assets and up to $1 million in liabilities. Howard Andrew Maltby, president of Biotactics, signed the petition. Judge Victoria S. Kaufman oversees the case. The Debtor is represented by Michael Jay Berger, Esq., at Law Offices of Michael Jay Berger. CDC Small Business Finance, as lender, is represented by: David McAllister, Esq. Aldridge Pite, LLP Phone: 877-319-8840 dmcallister@aldridgepite.com BLACKJEWEL LLC: DOL's Motion to Compel Discovery Granted in Part ---------------------------------------------------------------- Judge Benjamin A. Kahn of the United States Bankruptcy Court for the Southern District of West Virginia granted in part and denied in part the United States Department of Labor's motion to compel discovery in the bankruptcy case of Blackjewel LLC. United Healthcare Services, Inc. served as the third-party administrator for the Debtors' self-funded health plan. Under the Prior Health Plan, the Debtors self-funded a bank account from which UHSI paid employees' insurance premiums and medical expense claims. Prior to the failure to obtain financing for operations and contemporaneous with the filing of the original bankruptcy petitions, the Debtors filed a motion seeking approval to continue operating the Prior Health Plan in the ordinary course of business, which motion was granted on Aug. 8, 2019. On July 9, 2019, due to the Debtors' inability to fund the account as necessary to satisfy certain medical expense claims arising under the Prior Health Plan, UHSI suspended the payment and processing of claims arising after that date under the Prior Health Plan. On July 17, 2019, this hold was extended to stop the payment and processing of all claims arising under the Prior Health Plan regardless of the date of service of the claim. Soon thereafter, on Aug. 25, 2019, Debtors filed a motion seeking approval to terminate the Prior Health Plan effective Aug. 31, 2019, which motion was granted on Aug. 30, 2019. The DOL's Claims On July 3, 2019, the Court entered an Order providing for the joint administration of the chapter 11 cases of certain Debtors, including Blackjewel, LLC and Revelation Energy, LLC. On Aug. 8, 2019, the DOL filed on behalf of the Prior Health Plan itself a proof of claim in the case of Revelation Energy, LLC, POC No. 210, as well as a proof of claim in the case of Blackjewel, LLC, POC No. 208. Each claim is for an unliquidated amount and states that the basis of the claim is "money due to ERISA covered 401(k) plan." However, the attachment to each proof of claim explains that the claim is actually regarding money due to the Blackjewel, LLC Health Care Plan and the Revelation Energy, LLC Health Care Plan, respectively. Neither claim asserts entitlement to administrative priority, instead, each states that it should be "accorded unsecured priority treatment to the extent permitted in accordance with Sec. 507(a)(5)." The attachment to each proof of claim further states that the DOL was in the process of investigating potential ERISA violations and that the DOL would amend or withdraw each proof of claim upon completion of its investigation. On Nov. 1, 2019, in the Revelation Energy, LLC case, the DOL filed on behalf of the Prior Health Plan, an amendment to POC No. 210, asserting a priority claim under Sec. 507(a)(5) in the amount of $3,290,622.89 for contributions to an employee benefit plan and a general unsecured claim in the amount of $473,246.85. This amendment states that the DOL initiated an investigation into potential ERISA violations and determined that Debtor failed to pay participant medical claims under the Prior Health Plan and such failure "may or may not constitute a violation actionable" under ERISA. On April 16, 2021, the DOL amended POC No. 1327, increasing the priority claim amount to $4,656,339.17 and the general unsecured claim to $892,311.73. The amendment again states that the DOL initiated an investigation into potential ERISA violations and determined that Debtor failed to pay participant medical claims under the Prior Health Plan and such failure "may or may not constitute a violation actionable" under ERISA. On Oct. 4, 2019, the Court entered an Order which, inter alia, set a bar date of Nov. 4, 2019, for the filing of requests for allowance of administrative expense claims, which deadline was extended to Nov. 12, 2019, by stipulation. The DOL timely filed on the bar date a request for an unliquidated administrative expense claim "for any and all unpaid amounts resulting from the postpetition operation of the Debtors' ERISA Plans, including any damages arising from their operation subsequent to the Petition Date." In this request, the DOL stated that there were approximately $7,500,000.00 in unpaid claims for postpetition services asserted against the Prior Health Plan. On May 19, 2020, the DOL amended its administrative claim request to indicate that the amount of postpetition claims against the Prior Health Plan had increased to approximately $9,500,000.00. The DOL stated that the purpose of this amendment was "to reflect this approximate two million dollar increase in postpetition claims being asserted against the Prior Health Plan." On Jan. 20, 2021, the DOL amended its administrative claim request again, to indicate that the amount of postpetition claims against the Prior Health had increased to almost $13,000,000.00, including "likely duplicative claims." The DOL stated that this amendment was filed "to reflect such approximately $3,500,000.00 increased amount." On April 15, 2021, the DOL filed its final request for payment of an administrative expense claim in the amount of "$14,052,175.23 plus unbilled amounts." The request describes the nature of the claim as "Post-petition claims covered by the Prior Health Plan." None of the DOL's requests or amendments state that the basis for administrative expense priority of the DOL Claim is an ERISA violation. On Oct. 21, 2020, Debtors filed an Amended Chapter 11 Plan and First Amended Disclosure Statement. The DOL objected to confirmation of the Plan because, among other reasons, the Plan, by failing to account for how distributions would be made from Debtors' health plan following its termination, did not provide treatment for the DOL Claim. On March 22, 2021, with the support of the DOL, the Court confirmed the Plan and approved the Disclosure Statement as amended to obtain the support and consent of the DOL. The Trust's Objection the DOL Claim On Jan. 12, 2023, the Court entered an Order Approving Certain Claim Objection Procedures and Related Claim Hearing Procedures, authorizing the Trust to object to claims on an omnibus basis on grounds beyond those enumerated in Fed. R. Bankr. P. 3007(d) and establishing streamlined hearing procedures to efficiently resolve the Trust's omnibus objections. On May 28, 2024, the Trust filed the Thirteenth Omnibus Objection, seeking, in part, a reduction of the administrative expense request of the DOL from $14,052,175.23 to $144,214.80, and a reclassification of the remainder as a general unsecured claim. On Sept. 9, 2024, the DOL filed a response to the Trust's objection, arguing that the objection should be denied because: (1) it violates the Procedures Order; (2) no benefit to the bankruptcy estate needs to be shown for a claim to have administrative expense priority when the claim arises from a violation of the law; and (3) even if a benefit to the estate is required, it fails to recognize the value provided to the estate by UHSI's postpetition operation of the Prior Health Plan. On Dec. 5, 2024, the Court entered a Joint Scheduling Order providing the DOL and the Trust until May 23, 2025, to conduct and complete this discovery, and setting an evidentiary hearing to adjudicate the proper classification of the DOL Claim on July 17, 2025. Current Motion On May 30, 2025, the DOL filed the current Motion seeking an order compelling the Trust to comply with Requests for Production of Documents numbers 5, 7, and 10 and to produce certain documents and communications listed in the Trust's privilege log for in camera review to allow the Court to assess the Trust's asserted privileges and the application of the ERISA fiduciary exception. On July 7, 2025, the Trust filed the Response to the DOL's Motion, stating, inter alia, that it has produced all non-privileged, responsive communications that are relevant to the administrative expense status classification dispute, the ERISA fiduciary exception is inapplicable, in camera review is not necessary, and none of the communications and documents identified in the privilege log should be produced. In this case, the parties do not dispute that the health plan claims of Debtors' employees who returned post-petition are entitled to administrative priority. However, the DOL Claim includes postpetition health plan claims of furloughed employees who did not return to work. The DOL contends that the health plan claims of furloughed employees are also entitled to administrative priority because no benefit to the estate needs to be shown when a claim arises from a violation of the law and, alternatively, even if a benefit to the estate needs to be shown, that requirement is met because the continued operation of the Prior Health Plan for furloughed employees provided substantial value to Debtors' estates. In this case, the DOL argues that continued operation of the Prior Health Plan provided a benefit to the estate because it gave the furloughed employees an incentive to remain with the company which made the company more attractive to potential buyers. According to the Court, this argument is speculative and insufficient to confer an actual benefit on the estate. The fact that potential purchasers may have valued continued healthcare benefits to furloughed employees and made such benefits a requisite to their offers does not constitute an actual benefit to the estate. This is true even if the offers of such potential purchasers may have facilitated higher offers from actual purchasers who imposed no such requirement because such attenuated benefit is too speculative to constitute an actual benefit. Request for Production of Documents Request 5 seeks all communications with UHSI regarding the Prior Health Plan -- excluding invoices for payment -- for the period from June 1, 2019, through March 31, 2021. The DOL contends that the putative benefit to the estates of maintaining the health care plan was to keep furloughed employees available for potential purchasers, thereby making the assets potentially more attractive to purchasers. The DOL further contends that Debtors must have additional responsive documents because in its Aug. 25, 2019 Motion to terminate the Prior Health Plan, Debtors referenced pre-termination communications with the third-party plan administrator regarding giving furloughed employees notice of termination. This theory necessarily terminates on the date the Prior Health Plan was terminated. Thus, the Court will compel the Trust to produce all responsive non-privileged13 documents in its custody and control for the period from July 1, 2019, through Aug. 31, 2019, that refer to maintaining the Prior Health Plan or terminating the Prior Health Plan. Request 7 seeks all documents exchanged and/or communications between Debtors and any potential or actual purchasers of assets of Debtors for the period from July 1, 2019, through Sept. 17, 2019. The DOL contends that communications between the Trust and the potential and actual purchasers of Debtors' assets will indicate whether continuing to provide health insurance for furloughed employees was a benefit to the bankruptcy estate. However, the Court finds this request is overbroad to the extent that it seeks documents and communications between Debtors and potential purchasers who did not consummate sales with the estates. Request 10 seeks documents and/or communications discussing the furloughing of Debtors' employees for the period from June 1, 2019, through March 31, 2021. According to the Court, this request is overly broad to the extent that it seeks communications for the period after the Prior Health Plan was terminated on Aug. 31, 2019, or seeks either internal discussions of potential value or communications with potential purchasers. Even if Debtors' management thought there might be value in maintaining the Prior Health Care Plan before Aug. 31, 2019, that internal speculation or hope does not confer an actual benefit to the estate. Therefore, the Court will compel the Trust to produce all responsive non-privileged documents and communications: (1) for the period from June 1, 2019, through August 31, 2019; and (2) which discuss or are related to maintaining the Prior Health Plan in connection with a transaction or contemplated transaction with any actual purchaser of assets from the estates. The DOL contends that the Trust's privilege log is insufficient to allow the DOL to assess: the relevancy of the documents, whether there is adequate basis for the privilege asserted, and whether the ERISA fiduciary exception applies. Therefore, the DOL requests an in camera review of the documents listed on the privilege log. The Trust contends that the privilege log contains a clear description of the communication or document at issue without disclosing privileged information, the ERISA fiduciary exception is inapplicable, in camera review is unnecessary, and none of the documents identified on the privilege log should be produced. According to Judge Kahn, "Determination of administrative priority is not an ERISA enforcement action or a claim for damages under ERISA, and any putative breach of ERISA is not relevant to the priority determination. Entitlement to administrative expense priority arises under the Bankruptcy Code, not ERISA. Thus, whether Debtors or the Trust upheld any respective fiduciary duties or complied with ERISA is not relevant to determining what portion, if any, of the DOL Claim provided an actual benefit to the estates and might be entitled to administrative priority. Unlike cases in which the fiduciary exception applies, the priority of the DOL Claim is not based on any putative breach of fiduciary duty to the beneficiaries. The DOL has not provided any authority applying the ERISA fiduciary exception outside of this context, and this case is inapposite to those in which courts have applied the ERISA fiduciary exception where discovery is sought in furtherance of a claim based on such a breach of fiduciary duty or other ERISA violation. Therefore, the ERISA fiduciary exception is inapplicable." A copy of the Court's Opinion dated August 15, 2025, is available at https://urlcurt.com/u?l=2UiWQ0 from PacerMonitor.com. About Blackjewel LLC Blackjewel LLC's core business was mining and processing metallurgical, thermal and other specialty and industrial coals. Blackjewel operated 32 properties, including surface and underground coal mines, preparation or wash plants, and loadouts or tipples. Combined, Blackjewel and its affiliates held more than 500 mining permits. Operations were located in the Central Appalachian Basin in Virginia, Kentucky and West Virginia and the Powder River Basin in Wyoming. Blackjewel L.L.C. and four affiliates filed voluntary petitions seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Lead Case No. 19-30289) on July 1, 2019. Blackjewel was estimated to have $100 million to $500 million in asset and $500 million to $1 billion in liabilities as of the bankruptcy filing. On July 24, 2019, six additional debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Court for the Southern District of West Virginia. The Hon. Frank W. Volk was the case judge. The Debtors tapped Squire Patton Boggs (US) LLP as bankruptcy counsel; Supple Law Office, PLLC as local bankruptcy counsel; FTI Consulting Inc. as financial advisor; Jefferies LLC as investment banker; and Prime Clerk LLC as the claims agent. The Office of the U.S. Trustee on July 3, 2019, appointed five creditors to serve on the official committee of unsecured creditors in the Chapter 11 case of Blackjewel LLC. Whiteford Taylor & Preston LLP is the Committee's counsel. In August 2019, the Bankruptcy Court approved the sale of a substantial portion of Blackjewel LLC's coal mines to Kopper Glo Mining, LLC. On March 22, 2021, the Bankruptcy Court entered an order confirming the First Amended Joint Chapter 11 Plan of Liquidation for the Debtors. On April 1, 2021, the Effective Date of the Plan occurred, and the Plan was consummated. David J. Beckman is the liquidating trustee of the Blackjewel Liquidation Trust. BLOCKFI INC: Seeks Court OK for $13MM Deal After Objector Withdraws ------------------------------------------------------------------- Katryna Perera of Law360 reports that investors have asked a federal judge to approve their $13.2 million settlement with bankrupt crypto lender BlockFi Inc. after a class member dropped his objections. About BlockFi Inc. BlockFi is building a bridge between digital assets and traditional financial and wealth management products to advance the overall digital asset ecosystem for individual and institutional investors. BlockFi was founded in 2017 by Zac Prince and Flori Marquez and in its early days had backing from influential Wall Street investors like Mike Novogratz and, later on, Valar Ventures, a Peter Thiel-backed venture fund as well as Winklevoss Capital, among others. BlockFi made waves in 2019 when it began providing interest-bearing accounts with returns paid in Bitcoin and Ether, with its program attracting millions of dollars in deposits right away. BlockFi grew during the pandemic years and had offices in New York, New Jersey, Singapore, Poland and Argentina. BlockFi worked with FTX US after it took an $80 million hit from the bad debt of crypto hedge fund Three Arrows Capital, which imploded after the TerraUSD stablecoin wipeout in May 2022. BlockFi had significant exposure to the companies founded by former FTX Chief Executive Officer Sam Bankman-Fried. BlockFi received a $400 million credit line from FTX US in an agreement that also gave FTX the option to acquire BlockFi through a bailout orchestrated by Bankman-Fried over the summer. BlockFi also had collateralized loans to Alameda Research, the trading firm co-founded by Bankman-Fried. BlockFi is the latest crypto firm to seek bankruptcy amid a prolonged slump in digital asset prices. Lenders Celsius Network LLC and Voyager Digital Holdings Inc. also filed for court protection this year. Kirkland & Ellis is also advising Celsius and Voyager in their separate Chapter 11 cases. BlockFi Inc. and eight affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 22-19361) on Nov. 28, 2022. In the petitions signed by their chief executive officer, Zachary Prince, the Debtors reported $1 billion to $10 billion in both assets and liabilities. Judge Michael B. Kaplan oversees the cases. The Debtors tapped Kirkland & Ellis and Haynes and Boone, LLP, as general bankruptcy counsels; Walkers (Bermuda) Limited as special Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley Research Group, LLC as financial advisor; Moelis & Company as investment banker; and Street Advisory Group, LLC, as strategic and communications advisor. Kroll Restructuring Administration, LLC, is the notice and claims agent. BOY SCOUTS: Court Okays Estate Professionals' Fee Applications -------------------------------------------------------------- Judge Laurie Selber Silverstein of the United States Bankruptcy Court for the District of Delaware granted the final fee applications of 13 estate professionals in the bankruptcy case of the Boy Scouts of America. The Office of the United States Trustee's objection is overruled. Resolutions were reached with seven; six remain: White & Case LLP, Morris Nichols Arsht & Tunnell LLP and Haynes and Boone, LLP represented Debtors, Pachulski Stang, Ziehl & Jones LLP represented the Tort Claimants' Committee and Young Conaway Stargatt & Taylor, LLP and Gilbert LLP represented the Future Claimants' Representative. The objection is targeted to three specific areas: (i) the filing and prosecution of the Restructuring Support Agreement, (ii) time spent at the confirmation hearing seeking certain Findings and (iii) as to TCC counsel only, time spent on the "Kosnoff Communications." The UST contends that professional time charged to the estates for these services should not be awarded under Sec. 330 of the Bankruptcy Code because they were not necessary. As for the Kosnoff Communications, the UST also contends that a further reduction is appropriate to address certain attorney conduct. Collectively, Applicants seek approval of $146 million in fees for the work they performed over a roughly three-year period. The UST timely objected seeking disallowance of approximately $3.3 million of those fees. RSA One of the earliest settlements in the bankruptcy case was reached between the Debtors and Hartford Accident & Indemnity Company, which agreed to buy back the insurance policies it issued to the Debtor for $650 million subject to certain adjustments. Hartford would receive a debtor release and third-party releases. Per its terms, the Hartford Settlement could be brought before the court for approval as a standalone settlement under Bankruptcy Rule 9019 -- Hartford made that request -- or be incorporated into a plan. The Debtors opted to incorporate the Hartford Settlement into their Second Amended Plan. None of the TCC, the FCR or the Coalition supported the Hartford Settlement, declaring their unequivocal view that any plan of reorganization that includes the Hartford Settlement will be overwhelmingly voted down by the survivor community. Faced with this opposition, three months later, the Debtors entered into a RSA, which set forth the contours of a plan of reorganization. The RSA was ultimately supported by the TCC, the FCR, the Coalition, the Local Council Settlement Agreement and Release between Hartford and BSA Committee and numerous state court counsel representing abuse survivors. In broad terms, the RSA provided for: (i) Debtors' $250 million contribution to a trust for the benefit of abuse survivors, (ii) a commitment by the Local Council Committee to use reasonable efforts to obtain an aggregate contribution of $600 million from Local Councils, (iii) a commitment by state court counsel to recommend voting in favor of a plan as outlined in the RSA, (iv) payment of certain monthly fees to the Coalition, and (v) the inclusion of various findings in any order confirming a plan. UST Objection The UST objects to all services (and, thus all fees) related to the negotiation and presentation of the RSA as not necessary under Sec. 330(a)(3). He contends that when the services were rendered, they were not necessary to the administration of the estate because a reasonable professional would not expect the Court to alter rights between the Debtors and a party that was not a signatory to the RSA -- namely, Hartford. Applicants contend that the RSA was one but step on the way to what was ultimately the successful, confirmed plan that included many of the heavily-negotiated provisions of the RSA. In other words, Applicants contend that these services were necessary to the administration of the case and beneficial at the time the services were rendered because they provided the fundamental structure that led to the successful confirmation in this case. Judge Silverstein agrees with the Applicants. She explains, "The RSA memorialized a consensual resolution of numerous issues among Debtors, the FCR, the TCC, the Unsecured Creditors' Committee, Debtors' senior secured lender, the Coalition, the Local Council Committee and certain State Court Counsel. Among other benefits, consensual resolution with those parties was likely to substantially reduce litigation costs and preserve estate resources for the benefit of creditors Examined at that time, the negotiation and pursuit of the RSA were 'necessary' in that those services were beneficial at the time they were rendered. The RSA's provisions that formed the baseline compromises among the signatories to the agreement resolved numerous outstanding disputes and committed the signatories to supporting a plan containing those resolutions." "Because the services associated with the RSA were actual and necessary, they are compensable. No party objected to the requested fees on the grounds that the compensation requested for the services provided is unreasonable and I cannot conclude that it is based on my own review. Accordingly, the Objection to Applicants' fees related to the RSA is overruled." The UST also objects to the time billed for attendance at the portions of the confirmation hearing related to the Findings. The Court finds having determined pursuit of the Findings was necessary, it would be inappropriate to disallow fees associated with the ten trial days at issue in their entirety. In support of a partial reduction, the UST argues that reasonable time spent does not necessarily include all time actually expended. According to Judge Silverstein, "While this is true, no specific instance of unreasonableness warranting reduction has been argued or is readily discernable upon my independent review of the fee applications. I will not reduce Applicants' compensation for zealously advocating for their client's position on the Findings at the confirmation hearing, nor do I think any reduction of fees related to the time spent presenting related evidence is warranted." The UST also seeks a $434,431.60 reduction to the compensation requested in PSZJ's final fee application (a flat 10% reduction of the amount billed for non-travel time by John Lucas throughout the pendency of this case) to address Mr. Lucas's direct conduct related to the Kosnoff Communications. PSZJ responds that such a reduction would, as a monetary sanction, be contrary to the terms of the PSZJ Settlement. It also asserts that no reduction or sanction is warranted because the firm voluntarily agreed to its punishment through the PSZJ Settlement and other voluntary reductions. At bottom, the UST opposes approving otherwise allowable fees to penalize PSZJ for Mr. Lucas's role in the Kosnoff Communications and to deter similar actions in the future. This is a monetary sanction. Judge Silverstein concludes, "Even assuming arguendo that sanctions could be imposed in this procedural posture, the court-approved PSZJ Settlement prohibits further monetary sanctions against PSZJ. The PSZJ Settlement resolved all monetary penalties potentially arising from PSZJ's actions related to the Kosnoff Communications. I therefore decline to reduce PSZJ's fees as a sanction for that conduct." A copy of the Court's Memorandum Opinion dated August 15, 2025, is available at https://urlcurt.com/u?l=JLqHKz from PacerMonitor.com. About Boy Scouts of America The Boy Scouts of America -- https://www.scouting.org/ -- is a federally chartered non-profit corporation under title 36 of the United States Code. Founded in 1910 and chartered by an act of Congress in 1916, the BSA's mission is to train youth in responsible citizenship, character development, and self-reliance through participation in a wide range of outdoor activities, educational programs, and, at older age levels, career-oriented programs in partnership with community organizations. Its national headquarters is located in Irving, Texas. The Boy Scouts of America and affiliate Delaware BSA, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on Feb. 18, 2020, to deal with sexual abuse claims. Boy Scouts of America was estimated to have $1 billion to $10 billion in assets and at least $500 million in liabilities as of the bankruptcy filing. The Debtors have tapped Sidley Austin LLP as their bankruptcy counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel, and Alvarez & Marsal North America, LLC, as financial advisor. Omni Agent Solutions is the claims agent. The U.S. Trustee for Region 3 appointed a tort claimants' committee and an unsecured creditors' committee on March 5, 2020. The tort claimants' committee is represented by Pachulski Stang Ziehl & Jones, LLP, while the unsecured creditors' committee is represented by Kramer Levin Naftalis & Frankel, LLP. The Debtors obtained confirmation of their Third Modified Fifth Amended Chapter 11 Plan of Reorganization (with Technical Modifications) on September 8, 2022. The Order was affirmed on March 28, 2023. The Plan was declared effective on April 19, 2023. The Hon. Barbara J. House (Ret.) has been appointed as trustee of the BSA Settlement Trust. BOYD GROUP: DBRS Assigns BB(high) Issuer Rating, Trend Stable ------------------------------------------------------------- DBRS Limited (Morningstar DBRS) assigned an Issuer Rating of BB (high) with a Stable trend to Boyd Group Services Inc. (BGSI or the Company). Concurrently, Morningstar DBRS assigned a provisional credit rating of (P) BB to the Company's proposed Senior Unsecured Notes based on a recovery rating of RR5. KEY CREDIT RATING CONSIDERATIONS BGSI's credit ratings are supported by the Company's solid market position as one of the largest non-franchised collision repair centres in North America, which benefits from its strong reputation and long-standing relationships with insurance companies. The credit ratings also reflect the highly competitive and fragmented industry in which BGSI operates, the non-contractual aspect of its relationships with insurance companies, and the risks associated with its aggressive growth plans. BGSI is proposing to issue up to CAD 250 million of Senior Unsecured Notes (the Proposed Notes). The proceeds of the issuance will be used to repay amounts outstanding under the Company's secured revolving credit facility. As such, BGSI's key credit metrics are not expected to change immediately following the issuance of the Proposed Notes. The Proposed Notes will be guaranteed by all material subsidiaries of BGSI, including any borrowers and guarantors under the Company's secured credit agreement. The Proposed Notes will be unsecured obligations ranking equal with all existing and future unsecured indebtedness of BGSI, but will effectively be subordinated to any secured indebtedness of the Company. The recovery rating of RR5 on the Proposed Notes assumes the Company's secured revolving credit facility is fully drawn and reflects the first-lien position of all the Company's indebtedness under the secured credit agreement. CREDIT RATING DRIVERS Should BGSI be challenged to improve operating performance, including a return to positive same-store sales growth on a consistent basis over the next few quarters, and/or key credit metrics deteriorate (i.e., debt-to-EBITDA weakens to more than 4.0 times (x)) because of weaker-than-expected operating performance and/or more aggressive financial management, the credit ratings will be pressured. Conversely, although unlikely over the near term, Morningstar DBRS could take a positive credit rating action should BGSI materially strengthen its business risk profile, along with a commensurate improvement in the Company's key credit metrics on a normalized and sustained basis. EARNINGS OUTLOOK Morningstar DBRS believes BGSI's earnings profile will recover and strengthen within the current credit rating category over the near term. BGSI's earnings profile should benefit from rising used car prices and moderating insurance premiums as well as the Company's cost-saving initiatives. Additionally, over the medium term, the Company should benefit from increasingly costly repairs, including those affected by complexities around advanced driver assistance systems which, for example, require recalibration after a windshield replacement or accident. This, in combination with higher miles travelled, should also more than offset reduced accident rates. Morningstar DBRS acknowledges the Company's plan to grow revenue, EBITDA margins, and EBITDA to $5.0 billion, 14%, and $700 million, respectively, in 2029 from roughly $3.1 billion, 11%, and $335 million, respectively, in 2024. Against that backdrop, Morningstar DBRS forecasts BGSI's revenues to grow to more than $3.1 billion and approximately $3.4 billion in 2025 and 2026, respectively, from just below $3.1 billion during the last 12 months (LTM) ended June 30, 2025 (Q2 2025). Morningstar DBRS expects revenue growth to be primarily driven by new locations in 2025. While same-store sales should return to growth in Q3 2025, Morningstar DBRS expects full-year same-store sales to be slightly negative to relatively flat, given the weak performance in the first half of the year. That said, Morningstar DBRS acknowledges that the weak performance in the year to date was broad based across the industry, with BGSI performing better than the industry average. Revenue growth in 2026 should benefit from a more normalized same-store sales growth cadence in the low- to mid-single digit range and the contribution from new locations and acquisitions. Morningstar DBRS expects EBITDA margins to gradually improve, supported by increasing vehicle complexity, higher-margin scanning and calibration services, operating leverage gains, and BGSI's cost-saving initiatives. In support of its EBITDA margin growth objectives, the Company aims to achieve $100 million of annual recurring cost savings over the next five years. As part of this plan, BGSI implemented cost savings with a run rate of $30 million during the first half of the year, and expects to realize an incremental $40 million in annualized run rate cost savings by the end of 2026. These cost savings are primarily related to staffing as well as direct and indirect procurement spending. As such, Morningstar DBRS forecasts EBITDA to increase to comfortably above $350 million in 2025 and to at least $425 million in 2026 from approximately $340 million for the LTM ended Q2 2025. FINANCIAL OUTLOOK Morningstar DBRS believes BGSI's financial profile will remain relatively stable as the Company uses incremental debt to fund its growth objectives, such that key credit metrics remain relatively flat. Morningstar DBRS forecasts cash flow from operations to continue to trend in line with operating income, increasing to approximately $250 million and approximately $325 million in 2025 and 2026, respectively, from roughly $230 million in the LTM ended Q2 2025. Morningstar DBRS expects the Company to continue to use its cash flow from operations, combined with incremental debt, to fund (1) organic and inorganic growth, (2) principal lease payments of more than $110 million, and (3) a modest $10 million dividend in F2025 and F2026. As such, with earnings growth offsetting incremental debt to fund growth objectives, Morningstar DBRS expects key credit metrics to remain relatively stable (i.e., debt-to-EBITDA to remain in the 3.5x to 4.0x range versus 3.7x at the end of the LTM ended Q2 2025). Morningstar DBRS notes that weaker-than-expected operating performance for a sustained period resulting in a more permanent shift in the Company's business risk profile could also result in the requirement to maintain stronger credit metrics to support the same credit rating. CREDIT RATING RATIONALE Comprehensive Business Risk Assessment (CBRA): BBH/BB BGSI's CBRA of BBH/BB is supported by the Company's solid market position as one of the largest non-franchised collision repair centres in North America, benefitting from the Company's strong reputation and long-standing relationships with insurance companies. The CBRA also reflects the highly competitive and fragmented industry in which BGSI operates, the non-contractual aspect of its relationships with insurance companies, and the risks associated with its aggressive growth plans. Comprehensive FRA (CFRA): BBBL/BBH The Company's CFRA of BBBL/BBH reflects Morningstar DBRS' expectation that the Company is taking a balanced approach around scaling debt-funded growth, such that key credit metrics remain supportive of the current credit rating (i.e., maintain debt-to-EBITDA between 3.5x and 4.0x). Intrinsic Assessment (IA): BBH The IA of BBH is within the Intrinsic Assessment Range and is based on the CBRA and CFRA, also taking into consideration peer comparisons, among other factors. Additional Considerations: None The credit ratings include no further negative or positive adjustments resulting from additional considerations. Recovery Rating: The recovery rating of RR5 on the Proposed Notes assumes the Company's secured revolver is fully drawn and reflects the first-lien position of indebtedness under the secured credit agreement. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis. Notes: All figures are in U.S. dollars unless otherwise noted. BP RETAIL PARTNERS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: BP Retail Partners Inc. d/b/a Batteries Plus 3801 2nd Ave S Clinton, IA 52732 Business Description: BP Retail Partners Inc., doing business as Batteries Plus, operates as a U.S.-based wholesale and retail supplier of batteries, lighting products, and device repair solutions. The Company serves commercial and individual customers with services including on-site assessments, battery testing, recycling programs, and tailored service options, supporting sectors such as fire and security, property management, electrical contracting, facilities maintenance, manufacturing, education, and government. Chapter 11 Petition Date: August 21, 2025 Court: United States Bankruptcy Court Middle District of Florida Case No.: 25-03476 Judge: Hon. Randal S Mashburn Debtor's Counsel: Robert J. Gonzales, Esq. EMERGELAW, PLC 4235 Hillsboro Pike, Suite 300 Nashville, TN 37215 Tel: (615) 815-1535 Email: ecf@emerge.law Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Corey E. Robinson as president. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/ANLKIIY/BP_Retail_Partners_Inc__tnmbke-25-03476__0001.0.pdf?mcid=tGE4TAMA BP RETAIL TX: Case Summary & Six Unsecured Creditors ---------------------------------------------------- Debtor: BP Retail TX, LLC d/b/a Batteries Plus 216 7th Ave. S. #1 Clinton, IA 52732 Business Description: BP Retail TX, LLC, doing business as Batteries Plus, operates select corporate -owned stores under the Batteries Plus brand, providing batteries, lighting products, and device repair solutions. The Company offers services such as on-site assessments, battery testing, recycling programs, and tailored solutions for industries including fire and security, property management, electrical contracting, facilities maintenance, manufacturing, education, and government. Chapter 11 Petition Date: August 21, 2025 Court: United States Bankruptcy Court Middle District of Tennessee Case No.: 25-03484 Judge: Hon. Randal S. Mashburn Debtor's Counsel: Robert J. Gonzales, Esq. EMERGELAW, PLC 4235 Hillsboro Pike, Suite 300 Nashville, TN 37215 Tel: (615) 815-1535 E-mail: ecf@emerge.law Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Corey E. Robinson as CEO. A full-text copy of the petition, which includes a list of the Debtor's six unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/BSFPLXA/BP_Retail_TX_LLC__tnmbke-25-03484__0001.0.pdf?mcid=tGE4TAMA BRIDGEVOICE INC: Seeks Chapter 11 Bankruptcy in New York -------------------------------------------------------- Bridgevoice Inc. has filed for Chapter 11 bankruptcy protection in the Eastern District of New York. The company reported assets and liabilities each between $10 million and $50 million, with 200 to 999 creditors. The petition indicates funds will be available for distribution to unsecured creditors. About Bridgevoice Inc. Bridgevoice Inc. is a telecommunications company based in Garden City, New York. Bridgevoice Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-73097) on August 1, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge Alan S. Trust handles the case. The Debtor is represented by Tracy L. Klestadt, Esq. at Klestadt Winters Jureller Southard & Stevens, LLP. CAASTLE INC: Bankruptcy Auction to Sell Clothing and Laundry Assets ------------------------------------------------------------------- Heritage Global Partners, a subsidiary of Heritage Global Inc. (NASDAQ: HGBL) and a worldwide leader in asset advisory and auction services, has been appointed by the U.S. Bankruptcy Court for the District of Delaware, (Case #1:25-bk-11187), to conduct an online auction of assets formerly owned by CaaStle, Inc., a tech-enabled B2B clothing logistics company. Auction Details: -- Online Bidding Opens: September 8, 2025 -- Online Bidding Closes: September 9, 2025, starting at 12:00 PM PT -- Registration and Catalog: Interested parties can view the catalog and register to bid Here This large-scale sale features commercial laundry systems, warehouse infrastructure, and a significant quantity of premium branded clothing inventory, providing an opportunity for secondary market retailers, commercial laundry operators, 3PL/logistics providers, and apparel resellers to acquire high-value equipment and merchandise. Featured Assets Include: -- Apparel inventory from Ralph Lauren, Ba&sh, Maje, Ann Taylor, Banana Republic, and more -- (8) Realstar KM803 Dry Cleaning Systems -- (7) Wascomat EX677CL Commercial Washing Machines -- Wascomat EX645CL Commercial Washing Machines -- (6) Wascomet D783 Commercial Washing Machines -- (12) Wascomat TD83 Commercial Dryers -- (4) Leonard IM96SH Steam Tunnel Systems -- (300+) Garment Racks -- Pallet Racking -- (50+) Zebra Label Printers (ZD420, ZT410 models) -- JLG ES3246 Electric Scissor Lift -- Raymond R40 Reach Truck -- (150+) Uline Vinyl Basket Trucks -- (150+) Uline Poly Box Trucks -- And much more "This auction includes a comprehensive offering of late-model commercial laundry systems and thousands of high-quality apparel units from top-tier brands," said David Barkoff, Senior Vice President at Heritage Global Partners. "We believe this rare opportunity represents an ideal sale for buyers across fashion resale, logistics, and textile services looking for well-maintained, ready-to-deploy assets." Heritage Global Partners, Inc. ("HGP") HGP is a subsidiary of Heritage Global Inc. (NASDAQ: HGBL). HGP operates under the Industrial Assets business unit and is a full-service auction, liquidation and asset advisory firm which holds a prominent spot in the industrial sectors including Aerospace, Automotive, Aviation, Biotech, Broadcast & Postproduction, Chemical, Electronics Manufacturing, Energy, Food & Beverage, Heavy Construction, Metalworking, Oil & Gas, Pharmaceutical, Plastics, Printing, Real estate, Semiconductor, Solar, Textile & Woodworking, and others. HGP conducts 150-200 auction projects per year, globally. Heritage Global Inc. ("HG") HG values and monetizes industrial & financial assets by providing acquisition, disposition, valuation, and lending services for surplus and distressed assets. This aids in facilitating the circular economy by diverting useful industrial assets from landfills and operating an ethical supply chain by overseeing post-sale account activity of financial assets. Specialties consist of acting as an adviser, in addition to acquiring or brokering turnkey manufacturing facilities, surplus industrial machinery and equipment, industrial inventories, real estate, and charged-off account receivable portfolios through its two business units: Industrial Assets and Financial Assets. About CaaStle Inc. CaaStle Inc. is a fashion-technology startup. CaaStle Inc. sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11187) on June 20, 2025. In its petition, the Debtor reports between $10 million and $50 million in assets and liabilities. Honorable Bankruptcy Judge Brendan Linehan Shannon handles the case. The Debtor is represented by Brendan Joseph Schlauch at Richards, Layton & Finger, P.A. CABINETDNA LLC: Section 341(a) Meeting of Creditors on September 15 ------------------------------------------------------------------- CABINETDNA LLC has filed for Chapter 11 bankruptcy in the Middle District of Florida. The company listed assets between $50,001 and $100,000 and liabilities totaling $500,001 to $1 million. It elected to proceed under Subchapter V of Chapter 11 as a small business debtor. The company's largest creditor, Perimeter Pk Property Owner, is owed $309,086 for rent. The filing indicates that funds will be available for distribution to unsecured creditors. Jeffrey S. Ainsworth of BransonLaw, PLLC represents the debtor. A meeting of creditors under Section 341(a) to be held on September 15, 2025 at 01:00 PM. U.S. Trustee (Orl) will hold the meeting telephonically. Call in Number: 888-330-1716. Passcode: 5814238#. About CabinetDNA LLC CabinetDNA LLC is a wood kitchen cabinet and countertop manufacturer based in Clermont, Florida. It specializes in manufacturing wood kitchen cabinets and countertops. CabinetDNA LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-05127) on August 13, 2025. In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge Grace E. Robson handles the case. The Debtor is represented by Jeffrey Ainsworth, Esq. at Bransonlaw PLLC. CHEMTRADE LOGISTICS: DBRS Confirms BB(high) Issuer Rating --------------------------------------------------------- DBRS Limited (Morningstar DBRS) confirmed Chemtrade Logistics Inc.'s (Chemtrade or the Company) Issuer Rating at BB (high) and Senior Unsecured Notes credit rating at BB based on a recovery rating of RR5. All trends are Stable. KEY CREDIT RATING CONSIDERATIONS The credit rating confirmations reflect Chemtrade's solid operating performance in 2024 and H1 2025, as well as the Company's strong financial profile and conservative financial management. The Stable trends reflect Morningstar DBRS' view that Chemtrade's earnings will experience modest annual growth on a through-the-cycle basis, benefitting from industry tailwinds, particularly in the water chemicals and ultrapure acid product segments, while maintaining key credit metrics at levels considered strong for the current credit ratings. CREDIT RATING DRIVERS Should Chemtrade improve its business-risk profile, including increased size and scale, while maintaining key credit metrics at commensurate levels, Morningstar DBRS could take a positive credit rating action. Conversely, should Chemtrade's credit metrics weaken for a sustained period (i.e., debt-to-EBITDA increasing materially above 3.0 times (x)) as a result of a deterioration in operating income or more aggressive financial management, a negative credit rating action could ensue. EARNINGS OUTLOOK Morningstar DBRS expects that Chemtrade's earnings profile will remain relatively stable over the forecast horizon, experiencing modest annual earnings growth over the medium term primarily driven by investment in the water and ultrapure acid product segments, supported by favourable industry headwinds. Morningstar DBRS forecasts revenue to increase in the low- to mid-single-digit range towards $1.9 billion in 2025 from $1.8 billion in 2024 on the back of increased water solutions and regen acid (regenerated sulfuric acid) volumes and higher pricing for key products in both the sulphur and water chemicals (SWC) and electrochemicals segments. The Company's revenues will also benefit from the acquisition of certain Thatcher Group, Inc. (Thatcher Group) assets and favourable year-over-year (YOY) foreign exchange impacts. Revenue growth in 2025 is expected to be partially offset by volume challenges in the caustic soda, sodium chlorate, and HCl (hydro-chloric) product segments. Morningstar DBRS anticipates that Chemtrade's EBITDA margins will experience some normalization but remain at healthy levels above 25% in 2025 and 2026, from 26.3% in 2024, resulting from higher input prices in the SWC segment and the lag in passing them on, as well as higher corporate costs. As a result, Morningstar DBRS forecasts Chemtrade's EBITDA to remain within its publicly stated guidance range of $475 to $500 million in 2025, before growing mid-single digits YOY in 2026, versus $471 million in 2024. FINANCIAL OUTLOOK Morningstar DBRS expects Chemtrade's financial profile to continue to be supportive of the credit ratings over the medium term on the back of relatively stable growth in earnings and continued conservative capital allocation practices. Morningstar DBRS anticipates cash flow from operations to track in line with operating income, remaining in the $350 million to $375 million range. In 2025, capital expenditures (capex) are expected to remain slightly elevated at approximately $180 million because of plant turnarounds; investment in growth including the completion of the Cairo, Ohio, ultrapure sulphuric acid expansion project; and higher maintenance capex from inflationary impacts. Morningstar DBRS anticipates capex to decline modestly in 2026 but remain above $150 million. Morningstar DBRS forecasts dividends to grow to more than $80 million in 2025 and generally grow in line with earnings thereafter. Morningstar DBRS acknowledges Chemtrade's recent acquisitions of Thatcher Group's aluminum sulphate water treatment chemicals businesses in Florida, New York, and California for total proceeds of USD 30 million and Polytec, Inc. pending closing, for total proceeds of USD 150 million. In addition, Morningstar DBRS believes that Chemtrade will use free cash flow towards organic growth as well as returns to shareholders through 2025 and 2026. As a result, Morningstar DBRS believes Chemtrade's leverage will increase but remain at levels considered appropriate for the current credit ratings, with debt-to-EBITDA of approximately 2.5x in 2025 and 2026. CREDIT RATING RATIONALE Comprehensive Business Risk Assessment (CBRA): Chemtrade's CBRA of BB/BBL reflects its strong market position within its key product segments in North America, solid customer and end-market diversification, and barriers to entry in several of its product categories. The CBRA also considers the intense competitive environment within the industry and the Company's exposure to fluctuations in commodity prices. In addition, the CBRA incorporates a one-notch reduction because of the uncertainty around the long-term viability of liquid chlorine production at the Company's North Vancouver facility. Morningstar DBRS acknowledges that Chemtrade is in the process of a rezoning application aimed at seeking approval to produce liquid chlorine on its owned property at the Port of Vancouver. Any long-term resolution to the uncertainty regarding chlorine production at the Port of Vancouver could, if successful, improve the CBRA to BBH/BB. Comprehensive Financial Risk Assessment (CFRA): Chemtrade's CFRA of BBBH reflects the Company's strong key credit metrics (i.e., forecast debt-to-EBITDA of approximately 2.5x), as well as the Company's conservative capital management policies. Intrinsic Assessment (IA): The Company's IA of BBH is within the IA Range and is based on the CBRA and CFRA, also taking into consideration peer comparisons among other factors. Additional Considerations: The credit ratings include no further negative or positive adjustments resulting from additional considerations. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis. Notes: All figures are in Canadian dollars unless otherwise noted. CINEMA MANAGEMENT: Court Extends Cash Collateral Access to Aug. 31 ------------------------------------------------------------------ John Pringle, the Chapter 11 trustee for Cinema Management Group, LLC, received approval from the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, to continue using cash collateral through August 31 in accordance with his agreement with Banc of California, National Association, and Bondit LLC. This stipulation follows a series of interim and final orders previously granted by the court, which authorized the trustee to use cash collateral under specific budgetary conditions to support the Debtor's streamlined operations. The stipulation outlines the trustee's intent to use the Debtor's cash collateral solely to pay for critically necessary expenses outlined in an extended budget, including film materials storage, IT services, accounting and software subscriptions, taxes, and limited contractor payments. These expenses are essential to preserve the Debtor's operations while the trustee pursues a settlement involving the film "Buffalo Kids" and evaluates potential asset sale transactions. Under the terms of the stipulation, the trustee is permitted to deviate from the budget line items by up to 10%, both on an individual and aggregate basis. Additionally, the use of cash collateral includes the authority to pay U.S. Trustee fees and Bankruptcy Court Clerk expenses. The extended budget forecasts continued positive cash flow, with an expected ending cash balance of approximately $276,658 by August 31. Notably, the secured creditors have expressly consented to the extended use of cash collateral, and the stipulation reaffirms that all prior protections and conditions outlined in the court's June 5 final order remain in full effect. Banc of California is represented by: Alex M. Weingarten, Esq. Willkie Farr & Gallagher, LLP 2029 Century Park E Los Angeles, CA 90067 Telephone: (310) 855-3000 Facsimile: (310) 855-3099 aweingarten@willkie.com -and- Jennifer J. Hardy, Esq. Willkie Farr & Gallagher, LLP 600 Travis St Houston, TX 77002 Telephone: (713) 510-1700 Facsimile: (713) 510-1799 jhardy2@willkie.com -and -and- Elizabeth A. Wayne, Esq. Willkie Farr & Gallagher, LLP 300 N LaSalle Dr Chicago, IL 60654 Telephone: (312) 728-9000 Facsimile: (312) 728-9199 ewayne@willkie.com About Cinema Management Group Cinema Management Group, LLC is an international sales company that was launched in 2003 and was previously headed by veteran sales and distribution executive, Edward Noeltner. Since 2003, the company has added over 80 feature film titles to its line-up. It currently holds distribution rights related to 82 feature films. Cinema Management Group filed Chapter 7 voluntary petition (Bankr. C.D. Calif. Case No. 24-20369) on December 20, 2024. The case was converted to one under Chapter 11 on February 6, 2025, and John Pringle was appointed as Chapter 11 trustee on February 10, 2025. Judge Neil W. Bason oversees the case. The Chapter 11 trustee is represented by Levene, Neale, Bender, Yoo & Golubchik L.L.P. CITIUS PHARMACEUTICALS: Reports $9.2 Million Net Loss in Fiscal Q3 ------------------------------------------------------------------ Citius Pharmaceuticals, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $9.2 million for the three months ended June 30, 2025, compared to a net loss of $10.6 million for the three months ended June 30, 2024. For the nine months ended June 30, 2025, the Company reported a net loss of $31 million, compared to a net loss of $28.3 million for the same period in 2024. The Company experienced negative cash flows from operations of $14.7 million for the nine months ended June 30, 2025. The Company had a negative working capital of approximately $27.2 million at June 30, 2025. The Company estimates that its available cash resources will be sufficient to fund its operations through September 2025 which raises substantial doubt about the Company's ability to continue as a going concern within the next 12 months. The Company is currently engaged in capital raising initiatives, as well as separate capital raising initiatives through its 84.3% owned subsidiary Citius Oncology in an effort to extend its cash runway. Citius Oncology also has retained Jefferies LLC as its exclusive financial advisor in evaluating strategic alternatives aimed at maximizing shareholder value. The Company has generated no operating revenue to date and has principally raised capital through the issuance of debt and equity instruments to finance its operations. However, the Company's continued operations beyond September 2025, including its development plans for Mino-Lok, Halo-Lido and NoveCite, will depend on its ability to obtain regulatory approval for Mino-Lok and generate substantial revenue from the sale of LYMPHIR and on its ability to raise additional capital through various potential sources, such as equity and/or debt financings, strategic relationships, or out-licensing of its product candidates. However, the Company can provide no assurances on regulatory approval, commercialization, or future sales of LYMPHIR or that financing or strategic relationships will be available on acceptable terms, or at all. If the Company is unable to raise sufficient capital, find strategic partners or generate substantial revenue from the sale of LYMPHIR, there would be a material adverse effect on its business. Further, the Company expects in the future to incur additional expenses as it continues to develop its product candidates, including seeking regulatory approval, and protecting its intellectual property. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/5f7h83js About Citius Pharmaceuticals Headquartered in Cranford, N.J., Citius Pharmaceuticals, Inc., is a biopharmaceutical company dedicated to the development and commercialization of first-in-class critical care products. The Company's goal generally is to achieve leading market positions by providing therapeutic products that address unmet medical needs yet have a lower development risk than usually is associated with new chemical entities. New formulations of previously approved drugs with substantial existing safety and efficacy data are a core focus. The Company seeks to reduce development and clinical risks associated with drug development yet still focus on innovative applications. Boston, Massachusetts-based Wolf & Company, P.C., the Company's auditor since 2014, issued a "going concern" qualification in its report dated Dec. 27, 2024, citing that the Company has suffered recurring losses and has a working capital deficit as of Sept. 30, 2024. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of Sept. 30, 2024, the Company had $116.7 million in total assets, $42.5 million in total liabilities, and $74.1 million in total equity. As of Jun. 30, 2025, the Company had $127.7 million in total assets, $60.1 million in total liabilities, and $67.6 million in total stockholders' equity. CIVIL LLC: Seeks Cash Collateral Access --------------------------------------- Civil, LLC and its affiliates ask the U.S. Bankruptcy Court for the Southern District of Wales for authority to use cash collateral and provide adequate protection. The Debtors have no traditional bank debt but instead finance a significant amount of equipment through a group of lenders including AFG Investments, Komatsu Financial, Utica Leaseco, and others. Additionally, Pocahontas Land LLC and its affiliates claim to hold liens on substantially all of the Debtors' assets (excluding titled vehicles). However, the Debtors dispute the validity and priority of those liens. While the Debtors do not believe any pre-petition secured parties hold perfected liens on their cash or equivalents, they acknowledge that some may assert claims to it as cash collateral under 11 U.S.C. section 363(a). To support operations during the bankruptcy proceedings, the Debtors have negotiated a debtor-in-possession financing facility with AFG Investments 1A, LLC and SMA II LP I, LLC, with a commitment of up to $2 million. Although a formal DIP motion is yet to be filed before the final hearing, the Debtors have submitted a term sheet and a 13-week budget. The Debtors do not anticipate needing to draw on the DIP funds before the final hearing and are, in the interim, requesting authority to use existing cash collateral based on a five-week budget. The Debtors argue that immediate access to cash collateral is essential for continuing operations, paying employees, maintaining business relationships, covering administrative expenses, and preserving estate value. They propose to offer adequate protection to pre-petition secured parties during this interim period through replacement liens on the cash collateral, to the same extent, validity, and priority as pre-petition liens held as of the petition date. A copy of the motion is available at https://urlcurt.com/u?l=rwb1Tc from PacerMonitor.com. About Civil LLC Civil, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. W.V. Case No. 2:25-bk-20179) on August 20, 2025. In the petition signed by Barry W. Tackett, chief restructuring officer, the Debtor disclosed up to $100 million in assets and up to $50 million in liabilities. Judge B. Mckay Mignault oversees the case. J. Zachary Balasko, Esq., at Steptoe and Johnson PLLC, represents the Debtor as legal counsel. CLAIRE'S HOLDINGS: To Sell IP and NA Stores to Ames Watson ---------------------------------------------------------- Claire's Holdings LLC announced on Aug. 20, 2025, that it has entered into an agreement with an affiliate of Ames Watson, a private holding company that purchases, transforms and partners with companies to create long term value, for Ames Watson to acquire Claire's business operations in North America. Following its decision to commence voluntary Chapter 11 proceedings in the U.S. and proceedings in Canada under the Companies' Creditors Arrangement Act (CCAA) (together, the "Restructuring Proceedings"), Claire's has continued to explore every option to maximize the value of its business. The sale of these stores and Claire's IP to Ames Watson will significantly benefit the Company's efforts to create value through its Restructuring Proceedings. As part of the agreement, Claire's has paused the liquidation process at a significant number of stores. For its other stores in North America, the liquidation process will continue. The sale is subject to approval by the Courts in the U.S. and Canada, and other customary closing conditions. "As we continue through our restructuring proceedings, our team has worked tirelessly to explore every option for preserving the value of the Claire's business and brand," said Chris Cramer, CEO of Claire's. "We are glad to reach this definitive agreement to sell a portion of our North America operations to Ames Watson and maximize the value of our company for all our stakeholders. I would again like to extend my gratitude to every Claire's employee who has continued to show up for our customers during this challenging time for our business." "We are pleased to have the opportunity to partner with Claire's and support the next chapter for this iconic brand," said Lawrence Berger, Co-Founder of Ames Watson. "Claire's has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion. We are committed to investing in its future by preserving a significant retail footprint across North America, working closely with the Claire's team to ensure a seamless transition and creating a renewed path to growth based on our deep experience working with consumer brands." Claire's will continue to provide updates on the sale process through filings with the Courts in the U.S. and Canada. Additional information regarding the Chapter 11 proceedings is available at www.omniagentsolutions.com/claires. Court filings and information regarding the claims process are available at www.omniagentsolutions.com/claires, by calling the Company's claims agent, Omni Agent Solutions, toll-free at (888) 202-5971 (U.S.) or (747) 293-0183 (International) or by sending an email to ClairesInquiries@OmniAgnt.com. Additional information regarding the Company's CCAA proceedings and related court-filed materials is available at the court-appointed monitor's website at www.ksvadvisory.com/experience/case/claires, by calling KSV Advisory at +1 (844) 249-2665, or by emailing at claires@ksvadvisory.com. Advisors Kirkland & Ellis LLP is serving as legal counsel to Claire's. Houlihan Lokey is serving as investment banker, and Alvarez & Marsal is serving as restructuring advisor. Osler, Hoskin & Harcourt LLP is serving as Canadian legal counsel to Claire's. Paul Hastings LLP is serving as legal counsel to Ames Watson. About Ames Watson Founded by Lawrence Berger and Tom Ripley in 2018, Ames Watson is a privately held holding company based in Columbia, Md. which purchases, transforms and partners with companies to create long term value. Ames Watson has over $2 Billion in annual revenue. Brands owned or invested in by Ames Watson include Lids, LidsU, Unrivaled Teamwear, South Moon Under, Mitchell & Ness, Ebbets Field Flannels, Zygo, Hungry and Margaux. About Claire's Holdings Claire's Holdings LLC is a fully integrated, global fashion brand powerhouse committed to inspiring self-expression through the creation and delivery of exclusive, well-curated products and experiences. Through its global brands, Claire's and Icing, the company delivers an immersive, omnichannel shopping experience with owned and concession stores throughout North America and Europe as well as around the world. On the Web:Â http://www.claires.com/ On August 6, 2025, Claire's Holdings LLC and certain of its U.S. and Gibraltar-based subsidiaries, the operator of Claire's and ICING stores globally, commenced Chapter 11 proceedings in the United States Bankruptcy Court in the District of Delaware. The cases are pending before the Honorable Judge Brendan L. Shannon and the Debtors have requested joint administration (Bankr. D. Del. Lead Case No. 25-11454). In parallel, Claire's Canadian subsidiary commenced a proceeding in the Ontario Superior Court of Justice (Commercial Division) under the Companies' Creditors Arrangement Act to monetize the Company's Canadian assets under the protections offered by the CCAA. KSV Restructuring Inc. is the monitor in the CCAA case. Claire's and ICING locations outside of North America are not included in the Chapter 11 or CCAA proceedings. Claire's listed $1 billion to $10 billion in assets and liabilities. Kirkland & Ellis LLP is serving as legal counsel to Claire's. Houlihan Lokey is serving as investment banker, and Alvarez & Marsal is serving as restructuring advisor. Osler, Hoskin & Harcourt LLP is serving as Canadian legal counsel to Claire's. Omni Agent Solutions LLC is the claims agent. Ankura Trust Company, LLC, as Prepetition Priority Term Loan Agent and Prepetition Existing Term Loan Agent, is represented by: Joel Moss, Esq. Amit Trehan. Esq. Sean Tierney, Esq. Cahill Gordon & Reindell LLP Email: JMoss@cahill.com ATrehan@cahill.com STierney@cahill.com JPMorgan Chase Bank, N.A., as Prepetition ABL Agent, is represented by: Elisha D. Graff, Esq. Zachary J. Weiner, Esq. Sean Lee, Esq. Simpson Thacher & Bartlett LLP Email: egraff@stblaw.com zachary.weiner@stblaw.com sean.lee@stblaw.com -and- L. Katherine Good, Esq. Jeremy Ryan, Esq. Potter Anderson & Corroon LLP Email: lkgood@potteranderson.com jryan@potteranderson.com) CLST ENTERPRISES: Weinberg Zareh Must Disgorge $30,000 Retainer --------------------------------------------------------------- Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York sustains, in part, the objection of the United States Trustee to Weinberg Zareh Malkin Price LLP's fee application in the bankruptcy case of CLST Enterprises, LLC. The Court approves Vernon Consulting, Inc.'s requested fees and overrules the UST's objection. The UST objects to the fee application of the Debtor's counsel -- Weinberg Zareh Malkin Price LLP -- which received two separate retainer payments each in the amount of $30,000. The first $30,000 retainer was paid pre-petition by Carl Thomson, the Debtor's principal, and was properly disclosed; the second $30,000 retainer payment was paid post-petition and was not properly disclosed. The UST seeks disgorgement of the second $30,000 retainer and disallowance of WZMP's entire fee application. The UST has other objections to entries in the application. WZMP Fees The Court finds WZMP has failed to properly disclose the post-petition retainer. Moreover, WZMP did not disclose the post-petition retainer until it was advised by the UST that it failed to timely file a supplemental declaration. WZMP further admitted that the $30,000 post-petition retainer was not, in fact, paid directly by Mr. Thomson despite prior representations that it was. Instead, the post-petition retainer was paid by the Debtor's operating account and subsequently wired to WZMP from the Debtor's account. Therefore, any disgorged fees would be returned to the Debtor's estate, the Court says. The Court also holds WZMP violated the terms of its own Retention Order. According to the Court, by failing to request approval and disclose the post-petition retainer, WZMP's conduct violated both section 330 of the Bankruptcy Code and Fed.R.Bankr.P. 2016(b). Failure to disclose pursuant section 329(a) and Bankruptcy Rule 2016(b) is grounds to deny all fees and costs sought by counsel. According to Judge Glenn, it is within the Court's authority to deny all fees requested by WZMP. However, the Court elects to require WZMP to disgorge the $30,000 post-petition retainer due to WZMP's insufficient disclosures regarding its payment, and violation of the applicable Bankruptcy Code and Bankruptcy Rule provisions and to reduce the firm's overall compensation instead of denying all compensation to WZMP. WZMP does not appear to have intentionally failed to disclose the retainer. The Court requires WZMP to disgorge the $30,000 retainer and require it to be returned to the Debtor. Further, the Court adopts the UST's recommendation to reduce WZMP's compensation to $20,150.50 as a result of WZMP's failure to disclose. The UST recommended that the Court limit WZMP's compensation to $20,150.50, the amount of the prepetition retainer WZMP is holding. The UST also objects to individual time entries submitted by WZMP in its application on grounds of lumping, vagueness, no benefit provided to the estate, excessive time, and services rendered after the appointment of the Chapter 11 Trustee. The UST objects to each time entry claiming they pertain to services provided following the appointment of the Chapter 11 Trustee and provide no benefit to the estate. Although the Chapter 11 Trustee had already been appointed, the services rendered by WZMP, totaling 2.9 hours and $1,957.50 are reasonable, necessary and provided a benefit to the estate. Therefore, those fees are approved. The requested fees for preparation of the fee application are greater than what this Court finds to be acceptable. As it currently stands, WZMP's requested fees for preparing the fee application is approximately 6.8% of its total fees. Therefore, the Court reduces the amount of fees that may be paid to WZMP in connection with the preparation of the fee application to $553.89, which is 3% of the total allowed compensation of $20,150.50 less the disallowed time of $1,687.50. Therefore, the overall amount of fees approved for WZMP is $15,979.39. Vernon Consulting Fees The UST objected to two time entries from Vernon Consulting. According to the Court, engaging with real estate agents in connection with a sale transaction falls within the scope of Vernon Consulting's services to be rendered for the benefit of the Debtor's estate. Therefore, the Court overrules the UST's objection with respect to the April 19, 2024, time entry and approves the requested fees of $135.00 in connection with this time entry. Turning to the July 29, 2024 time entry pertaining to the June monthly operating report, the Court approves the requested fees of $855.00 in connection with this time entry. Accordingly, the Court approves the fees to Vernon Consulting and overrules the UST's objection. A copy of the Court's Memorandum Opinion and Order dated August 15, 2025, is available at https://urlcurt.com/u?l=NPOQcc from PacerMonitor.com. Counsel to Debtor CLST Enterprises, LLC: Adrienne Woods, Esq. Todd Duffy, Esq WEINBERG ZAREH MALKIN PRICE LLP 45 Rockefeller Plaza, 20th Floor New York, NY 10111 E-mail: awoods@wzmplaw.com About CLST Enterprises CLST Enterprises, LLC owns a 4,742-square-foot mixed-use building consisting of residence with commercial retail and office space rentals valued at $9.36 million. CLST Enterprises filed Chapter 11 petition (Bankr. S.D.N.Y. Case No. 24-10596) on April 8, 2024, listing $9,393,173 in assets and $7,356,006 in liabilities. The petition was signed by Carl Thomson as member. Judge Martin Glenn oversees the case. The Debtor tapped Weinberg Zareh Malkin Price, LLP and Vernon Consulting, Inc. as legal counsel and financial advisor, respectively. CONCEPTS CONNECTIONS: Case Summary & Three Unsecured Creditors -------------------------------------------------------------- Debtor: Concept Connections Ltd 4225 W Parker Rd Plano, TX 75093 Business Description: Concept Connections Ltd, based in Plano, Texas, provides behavioral health services with a focus on Applied Behavior Analysis (ABA) therapy for individuals with autism and other developmental disabilities. The Company collaborates with families, therapists, and schools to deliver tailored therapeutic programs. It operates at multiple locations in Plano, including 4225 W Parker Rd, and accepts most major insurance plans. Chapter 11 Petition Date: August 22, 2025 Court: United States Bankruptcy Court Eastern District of Texas Case No.: 25-42455 Debtor's Counsel: Sarah M. Cox, Esq. SPECTOR & COX 12770 Coit Road Suite 850 Dallas TX 75251 Tel: (214) 310-1321 E-mail: sarah@spectorcox.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jennifer Keese as president and CEO. A full-text copy of the petition, which includes a list of the Debtor's three unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/PFJDZPI/Concept_Connections_Ltd__txebke-25-42455__0001.0.pdf?mcid=tGE4TAMA COOKSON'S TRANSMISSION: Case Summary & Eight Unsecured Creditors ---------------------------------------------------------------- Debtor: Cookson's Transmission City, Inc. 723 E. Hwy 67 Duncanville, TX 75137 Business Description: Cookson's Transmission City, Inc. provides automotive repair services with a focus on transmission diagnostics, maintenance, and rebuilding, and also offers related services including tune-ups, air conditioning repair, and alternator replacement. The Company has operated in Duncanville, Texas since 1978, serving individual car owners and local customers in the Dallas–Fort Worth area. Chapter 11 Petition Date: August 22, 2025 Court: United States Bankruptcy Court Northern District of Texas Case No.: 25-33212 Judge: Hon. Michelle V Larson Debtor's General Bankruptcy Counsel: Bryan C. Assink, Esq. BONDS ELLIS EPPICH SCHAFER JONES LLP 420 Throckmorton Street, Suite 1000 Fort Worth, TX 76102 Tel: 817-405-6900 Email: bryan.assink@bondsellis.com Total Assets as of June 27, 2025: $1,063,188 Total Liabilities as of June 27, 2025: $880,770 The petition was signed by Joey Carbon as president. A copy of the Debtor's list of eight unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/FRU2FGI/Cooksons_Transmission_City_Inc__txnbke-25-33212__0002.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/FXHUEXI/Cooksons_Transmission_City_Inc__txnbke-25-33212__0001.0.pdf?mcid=tGE4TAMA COUNSELING CENTER: Seeks Chapter 11 Bankruptcy in Florida --------------------------------------------------------- The Counseling Center at Middlesex, LLC has filed for Chapter 11 bankruptcy in the Southern District of Florida. The petition lists assets between $50 million and $100 million and liabilities ranging from $10 million to $50 million. City National Bank of Florida is named as the largest creditor, with a claim of approximately $20.5 million. The debtor stated that funds will be available for distribution to unsecured creditors through the reorganization process. This filing is part of a coordinated Chapter 11 strategy involving 26 affiliated entities, including multiple counseling centers and Sunrise Detox facilities in various locations, signaling a broader restructuring effort by a healthcare group focused on counseling and substance abuse treatment services. About The Counseling Center at Middlesex LLC The Counseling Center at Middlesex LLC operates an outpatient mental health facility providing counseling services in Middlesex, New Jersey. The company functions as part of a larger network of treatment centers with facilities across multiple states, primarily focused on mental health and counseling services. The Counseling Center at Middlesex LLC relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-19341) on August 13, 2025. In its petition, the Debtor reports estimated assets between $50 million and $100 million and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Mindy A. Mora handles the case. The Debtor is represented by Bradley S. Shraiberg, Esq. at Shraiberg Page PA. CTN HOLDINGS: Co-Founder Faces Fraud Allegations from SEC --------------------------------------------------------- Martina Barash of Bloomberg Law reports that the Securities and Exchange Commission filed a lawsuit on Thursday, August 21, 2025, accusing Aspiration Partners Inc. co-founder and board member Joseph Sanberg of inflating company revenue through sham customer agreements. According to the complaint, Sanberg enlisted friends, associates, small businesses, and religious organizations to pose as paying clients, misrepresenting them as committed customers. The suit adds to ongoing fallout from the bankruptcy of the celebrity-backed sustainability startup, which arranged carbon credits for major corporations including Meta Platforms Inc. and Microsoft Corp., according to Bloomberg Law. About CTN Holdings CTN Holdings Inc., formerly known as Aspiration Partners Inc., is a climate finance company specializing in providing high-quality carbon solutions to businesses worldwide. They connect companies with effective decarbonization strategies and a wide range of carbon removal projects, selling carbon credits sourced from a diverse network of project developers. The company is famous for providing carbon creditors of Microsoft Corp., Meta Platforms Inc., and other big companies. CTN Holdings Inc. and six of its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10613) on March 30, 2025. In the petition, the Debtors reported estimated assets of $50 million to $100 million and up to $50,000 and estimated liabilities of $100 million to $500 million. The petitions were signed by Miles Staglik as chief restructuring officer. The Debtors tapped Whiteford, Taylor & Preston LLC as counsel and BDO USA PC as tax consultants. Kurtzman Carson Consultants, LLC dba Verita Global, is the Debtors' claims and noticing agent. DMDS LLC: Court Denies Bid to Sell Exempt Property -------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas, Houston Division has denied DMDS LLC's motion seeking authority to sell Property, free and clear of liens, claims, interests, and encumbrances. The Debtor has requested to sell part of its business property and wished to close on or before September 1, 2025. The legal description of the Debtor's Property is Lot 6A, Block 322, South Houston R/P Lot 6-7 Block 322; 0.2685 acres, known as 404 Spencer Highway, South Houston, Harris County, Texas 77587. The Court has denied the Debtor's motion to sell exempt property indicating that the Debtor has no exempt property. Exemptions are limited to individuals and the Debtor does not have any exempt property. The Court further held that the motion is incorrectly self-calendared. Emergency motions are set by the Court and not by the movant. In addition, the Court says the motion contains no statutory authority for the Court to grant the requested relief. The Court also notes that Harris County has filed a Final Notice of Plan Default and Termination of Stay. Further, the Debtor does not need Court permission to sell this property as it is subject to a confirmed Chapter 11 Plan, the Court further rules. About DMDS, LLC DMDS, LLC is a limited liability company that owns and leases commercial properties in South Houston, Texas. On Aug. 1, 2022, DMDS sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Case No. 22-32201), listing as much as $10 million in both assets and liabilities. DMDS President David M. Soliman signed the petition. Judge Jeffrey P. Norman oversees the case. The Law Offices of Larry A. Vick serves as the Debtor's bankruptcy counsel. DMK PHARMACEUTICALS: Court Narrows Claims in Case v. Catalent ------------------------------------------------------------- Judge Mary F. Walrath of the United States Bankruptcy Court for the District of Delaware will grant in part and deny in part the motion of Catalent Belgium, S.A. and Catalent Pharma Solutions, Inc. to compel arbitration and dismiss the adversary complaint captioned as DMK PHARMACEUTICALS CORP. and ADAMIS PHARMACEUTICALS CORP. Plaintiffs, v. CATALENT BELGIUM, S.A. and CATALENT PHARMA SOLUTIONS, INC. Defendants, Adv. No. 24-50070 (Bankr. D. Del.). The Court will also grant in part and deny in part DMK Pharmaceuticals Corporation and Adamis Pharmaceuticals Corporation's motion for leave to amend their complaint. DMK and its affiliated subsidiaries were a family of clinical stage neuro-biotechnology pharmaceutical companies that own various drug therapies. One of the Debtors' products, SYMJEPI, was an injectable epinephrine product approved by the FDA for the emergency treatment of allergic reactions (Type 1) including anaphylaxis. On Aug. 13, 2015, a predecessor to DMK5 entered into a supply agreement with Catalent Belgium S.A. for a five-year term, automatically extended for two successive two-year terms. On May 18, 2020, the same entity entered into a quality agreement with Catalent Pharma Solutions, Inc. for the manufacture, release testing, and stability testing of SYMJEPI. All formulations of SYMJEPI and filling processes were validated before Catalent Pharma began manufacturing. On Feb. 2, 2024, the Debtors filed petitions for reorganization under chapter 11 of the Bankruptcy Code. On Oct. 28, 2024, the Court confirmed the Debtors' First Amended Joint Chapter 11 Plan of Liquidation. The Plan vested all the assets of the estate in RK Consultants, LLC, as the Liquidation Trustee. The Debtors scheduled the Defendants as having a contingent, unliquidated, and disputed claim of approximately $1.8 million. Catalent Belgium filed a proof of claim in the amount of approximately 1.5 million Euros on May 17, 2024, which was beyond the claims bar date of April 24, 2024. On May 30, 2024, the Plaintiffs filed a complaint against the Defendants for breach of contract, objection to their claim, and equitable subordination of that claim. On Feb. 2, 2025, the Defendants filed a Motion to Compel Arbitration and Dismiss the Complaint. On April 9, 2025, the Plaintiffs filed a Motion for Leave to Amend the Complaint, inter alia, to add counts for fraudulent inducement and gross negligence. In response, the Defendants asserted that the Motion to Amend was untimely and futile because the new claims asserted by the Plaintiffs are also subject to arbitration. Amendment to Complaint The Plaintiffs' proposed amendment includes the substitution of the Liquidation Trustee for the Debtors' estates as the plaintiff and additional allegations related to their claims. The Amended Complaint also adds two counts: fraudulent inducement and gross negligence. The Defendants do not oppose the substitution of the Liquidation Trustee as plaintiff in this action. Because the causes of action belonging to the estates have been vested in the Liquidation Trustee by the confirmed Plan, the Court will grant the Motion to Amend in that respect. Amendment as of Right The Defendants argue that the Plaintiffs have no unilateral right to amend the Complaint under Rule 15(a)(1) because their motion was not filed within 21 days of the filing of the Defendants' Motion to Dismiss. Therefore, they contend that the Plaintiffs must seek and obtain leave of this Court to amend the Complaint to add the additional allegations and claims. The Plaintiffs argue that their Motion to Amend was timely because, after the Motion to Dismiss was filed, the parties agreed to several extensions of time for the Plaintiffs to respond to that Motion. Those extensions were approved by the Court and the Plaintiffs' Motion to Amend was filed within the extended time to which the parties stipulated. The Defendants assert, however, that the agreement to extend the time to respond to the Motion to Dismiss did not extend the time to file a Motion to Amend the Complaint. The Court agrees with the Defendants that the first extension did not extend the time to amend the Complaint as of right because it does not expressly stipulate to the extension of that time. Further, the second stipulation for an extension, which did purport to extend the time to amend the Complaint as of right, was not effective because it was not filed within the 21 days for an amendment of right to be filed. Amendment by Leave of Court The Plaintiffs have nonetheless asked the Court for permission to amend the Complaint under Rule 15(a)(2) asserting that "justice so requires." They argue that permission to amend must be readily granted "absent any undue delay, bad faith, dilatory motives, repeated failure to cure deficiencies, undue prejudice to the opposing party, or futility of amendment. The Defendants argue that the Court should not grant leave to amend under Rule 15(a)(2) to add the additional counts because the amendment would be futile. They assert that futility is apparent because the arbitration provision in the Supply Agreement is broad enough to cover the tort claims added by the amendment, as well as the breach of contract claims in the original Complaint. The Defendants further argue that it is up to the arbitrator, not this Court, to decide what is covered by the arbitration provision. The Plaintiffs respond that their proposed amendment of the Complaint would not be futile. They contend that none of their claims against the Defendants are subject to arbitration. Motion to Dismiss The Defendants seek to dismiss the breach of contract and tort claims in the Complaint and Amended Complaint primarily on the basis that those claims are subject to an arbitration clause in the Supply Agreement. To the extent the Court finds that any of the Plaintiffs' claims are not subject to arbitration, the Defendants ask the Court to stay those claims until arbitration of the other claims has been concluded. If not stayed, the Defendants argue that the Plaintiffs' equitable subordination claim should be dismissed because the Plaintiffs do not allege any egregious misconduct which would support such a claim. The Defendants finally contend that the Plaintiffs' objection to their proof of claim as untimely should be denied. In its Reply, the Plaintiffs contend that: (i) none of their claims against the Defendants are subject to arbitration, (ii) enforcing the arbitration clause with respect to their claims would undermine the purposes of the Bankruptcy Code, and (iii) if the Court determines that some of their claims are arbitrable, it should not stay the remaining core claims (including its objection to the Defendants' proof of claim and the equitable subordination of that claim). The Defendants contend that it is the province of the arbitrators, not this Court, to decide the applicability and extent of their right to arbitration. The Plaintiffs dispute the Defendants' contention. Instead, they contend that the arbitrability question is to be decided by judges unless the parties clearly agree that the issue is to be decided by the arbitrator. The Court agrees with the Plaintiffs that this Court has the power to decide the scope and applicability of the arbitration clause at issue in this case. There is no "clear and unmistakable" provision in the parties' arbitration clause that gives the arbitral tribunal the exclusive jurisdiction to decide the arbitrability issue. Thus, the Court concludes that the parties have not agreed that the arbitral tribunal has the exclusive jurisdiction to decide what claims are subject to the arbitration clause. Therefore, the Court may decide that issue. Contract Claims The Defendants argue that the contract claims for breach of the Supply Agreement are clearly subject to arbitration by the express terms of the arbitration provision in the Supply Agreement. They also contend that, while the Quality Agreement does not contain an arbitration clause, the breach of contract claims related to that Agreement are also covered by the Supply Agreement arbitration provision. The Defendants contend that, while the Quality Agreement was executed by Catalent Pharma, it did so as an agent of Catalent Belgium and as part of Catalent Belgium's performance under the Supply Agreement. Therefore, the Defendants argue that any disputes under the Quality Agreement are also subject to the arbitration provisions of the Supply Agreement. The Plaintiffs respond that the Quality Agreement has no arbitration provision and therefore the claims for breach of that Agreement are not subject to mandatory arbitration. The Court rejects the Plaintiffs' argument on this point. The Supply Agreement clearly contemplated that a quality agreement would be subsequently executed by the parties. There is no evidence that the parties entered into any quality agreement relating to SYMJEPI other than the one dated 2020, which is the only one referenced in the Plaintiffs' Complaint. The Court notes that while it is true that both the Quality Agreement and the Supply Agreement provide that the terms of the Quality Agreement control quality issues, both of those Agreements state that the terms of the Supply Agreement govern the commercial issues, including the allocation of risk, financial responsibility, and liability issues. The Court concludes that the forum for resolution of the parties' disputes about breach of those Agreements is not a quality issue, but rather is a commercial issue related to "the allocation of risk, financial responsibility and liability." Therefore, the Court finds that the parties intended that the Supply Agreement terms, including the arbitration provision, govern which forum will decide the breach of contract claims. Tort Claims The Plaintiffs nonetheless argue that compelling arbitration of their tort claims is not mandated by the terms of the Supply Agreement's arbitration provision as they are based on common law principles, not the Agreement's terms. The Court disagrees because the terms of the arbitration provision are broad enough to encompass the tort claims. Therefore, the Court concludes that those claims are also subject to the arbitration provision. Objection to, and Subordination of, Claims The Plaintiffs contend, however, that requiring arbitration of their objection to, and request for subordination of, the Defendants' claim would conflict with the purposes of the Bankruptcy Code which mandate that it is this Court which must hear and decide those core claims. The Defendants respond that there is a substantial overlap in legal and factual issues among all the contract and tort claims and that the arbitrator's decision would decide many of those issues. Therefore, they suggest that the Plaintiffs' objection to their claim and equitable subordination count should be stayed pending resolution of the arbitration. The Court finds that, because the Plaintiffs' claim for equitable subordination is premised on the alleged inequitable conduct of the Defendants in performing the Agreements, it too is dependent on resolution of the issues the parties agreed to arbitrate. Therefore, the Court concludes that the Defendants' suggestion makes sense. The Court can stay the ultimate allowance of the Defendants' claim until after the arbitration has resolved the issues related to the other arbitrable claims. The Plaintiffs argue nonetheless that, because the contract and tort claims are inextricably related to the claim objection and subordination (which the Defendants acknowledge), there is "an inherent conflict between the arbitration and the statute's underlying purposes" which mandates that the Bankruptcy Court exercise its discretion and deny arbitration of all of the claims in the Amended Complaint. While the Court agrees with the Plaintiffs that the allowance of claims against the estate and their order of priority is a core task of the Bankruptcy Court, that alone does not justify vitiating the parties' agreement to arbitrate their disputes. In this case, the Defendants' proof of claim, and the Plaintiffs' objection to that claim, are premised on the allegations of breach of contract and the tort claims related to the performance of the Agreements, not on any provision of the Code. According to the Court, enforcing an arbitration provision with respect to a pre-petition breach of contract or related tort claim does not conflict with an inherent Bankruptcy Code principle. Therefore, the Court concludes that there is no inherent conflict between the Bankruptcy Code and enforcement of the arbitration provision as to the breach of contract and tort claims in this case. Because the Plaintiffs' objection to the Defendants' proof of claim and its request for equitable subordination of that claim are premised in part on the arbitrable claims, the Court will stay a resolution of those claims until the arbitration concludes. The Court will grant the Motion for Leave to Amend solely to allow the substitution of the Liquidation Trustee as the party/plaintiff. The Court will deny the Motion for Leave to Amend filed by the Plaintiffs in all other respects as futile because all of the claims which the Plaintiffs seek to add to the Complaint are subject to the parties' agreement to arbitrate. The Court will grant the Motion to Compel Arbitration filed by the Defendants with respect to the breach of contract claims in Count I because they are subject to the parties' arbitration agreement. Finally, the Court will stay Count II (the objection to Catalent Belgium's claim) and Count III (the equitable subordination of that claim) of the Complaint until the arbitration of the other claims is concluded. A copy of the Court's Memorandum Opinion dated August 14, 2025, is available at https://urlcurt.com/u?l=4hEFdK About DMK Pharmaceuticals Corp. DMK Pharmaceuticals Corporation and its affiliates are composed of a family of pharmaceutical companies that own various therapies treating different indications. Over time, the Debtors' portfolio of treatments has focused on treatment of the opioid epidemic, both in an emergency setting and in the prophylactic treatment of Opioid Use Disorder. DMK Pharmaceuticals and its affiliates filed petitions under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10153) on Feb. 2, 2024. In the petition signed by its chief financial officer, Seth Cohen, DMK Pharmaceuticals disclosed $10 million to $50 million in both assets and liabilities. The Debtors tapped Gellert Scali Busenkell & Brown, LLC and Nelson, Mullins, Riley & Scarborough, LLP as legal counsels; and Rock Creek Advisors, LLC as financial advisor. BMC Group, Inc., is the claims and noticing agent. DMMJ REALTY: Hires Koblick & Weinstein CPA P.C. as Accountant ------------------------------------------------------------- DMMJ Realty Corp. and affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Koblick & Weinstein, CPA P.C. as accountant. The firm will prepare all necessary financial statements of the Debtor in accordance with accounting principles generally accepted in the United States of America based on information provided by the Debtors and in the format required by the Bankruptcy Court and Bankruptcy Code. The firm will be paid $1,200 per month for the Debtors' monthly operating reports. The cost of preparing the Debtor's taxes is $17,500. Mr. Weinstein disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Michael Weinstein Koblick & Weinstein, CPA P.C. 401 Columbus Ave. Suite 102 Valhalla, NY 10595 Tel: (914) 747-3010 Fax: (914) 495-8330 About DMMJ Realty Corp. DMMJ Realty Corp. is a single asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). DMMJ Realty Corp. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22157) on February 27, 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 Sean H. Lane handles the case. The Debtor is represented by Robert L. Rattet, Esq. at DAVIDOFF HUTCHER & CITRON LLP. DMMJ REALTY: Hires Northgate as Real Estate Advisor --------------------------------------------------- DMMJ Realty Corp. and affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Northgate Real Estate Group as real estate advisor. The firm will market and sell the Debtor's real property located at 143 Westchester Avenue, Port Chester, New York. The firm will be paid a commission of 5 percent of the gross purchase price. As disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Greg Corbin Northgate Real Estate Group 1633 Broadway 46th Floor New York, NY 10019 Telephone: (212) 419-8101 Email: Greg@northgatereg.com About DMMJ Realty Corp. DMMJ Realty Corp. is a single asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). DMMJ Realty Corp. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-22157) on February 27, 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 Sean H. Lane handles the case. The Debtor is represented by Robert L. Rattet, Esq. at DAVIDOFF HUTCHER & CITRON LLP. EAST COAST DESIGN: Gets Interim OK to Use Cash Collateral --------------------------------------------------------- East Coast Designs, Inc. received interim approval from the U.S. Bankruptcy Court for the District of Massachusetts to use the cash collateral of its secured creditors. The interim order authorized the Debtor to collect and use pre-bankruptcy assets in which the secured creditors claim a security interest, including any proceeds of pre-bankruptcy accounts receivables and cash on hand. The Debtor must use the cash collateral pursuant to its budget, within an overall margin of 10%, except as to the cost of goods sold in the operation of its business. As adequate protection, secured creditors including Eastern Bank and the merchant cash advance (MCA) creditors will have continuing replacement liens and security interests on post-petition property of the Debtor's estate. The Debtor believes that all pre-petition and post-petition accounts receivable it generates are property of the estate, which, if subject to valid liens, would constitute cash collateral available for its use on approval by the court. If the MCA creditors claim that any accounts receivable generated by the Debtor are not cash collateral, they must file an objection by the September 10 deadline. If the court later determines that the Debtor's pre-petition accounts receivable were purchased by a creditor and were not property of the estate or cash collateral, the amount of proceeds of any "sold" receivables used by the Debtor during the interim period will be deemed a secured loan and such creditor will have a pro rata post-petition security interest in the Debtor's post-petition accounts receivable to secure those amounts. The next hearing is set for September 11. The Debtor's recent financial difficulties arose in 2024 when two major design projects -- one expected to generate over $3 million and another valued at $25 million -- were delayed due to unforeseen client issues. To bridge the resulting cash shortfall, the Debtor entered into a series of merchant cash advance transactions. However, the aggressive repayment terms of the MCAs worsened the Debtor's financial condition. Some MCA lenders also contacted the Debtor's clients and attempted to divert payments, which led to increased disruption and ultimately forced the Debtor to seek Chapter 11 protection. Despite these challenges, the Debtor maintains a strong reputation, industry recognition, and a viable business model. The Debtor believes it can stabilize, reorganize effectively, and make meaningful distributions to creditors through a plan. As of the petition date, the Debtor held approximately $270,000 in assets, including $6,400 in cash, $80,000 in furniture and equipment, $55,000 in inventory, $100,000 in receivables, and a 2021 Mercedes Benz GLE 350 valued at $30,000. Its liabilities total around $483,000, including approximately $17,000 owed to Eastern Bank on an SBA-backed loan, $266,000 to three remaining MCAs, and about $190,000 to vendors and credit cards. Eastern Bank holds a first-position, all-asset security interest in the Debtor's assets, including the cash collateral. Three MCA creditors -- Boom Funded, QFS Capital, and Funders App LLC/Simplifi Capital -- assert security interests in the Debtor's receivables or other assets. Boom Funded filed a UCC-1 financing statement on July 1, within the 90-day preference window, making it potentially avoidable. The other MCAs' lien status is unclear, and the Debtor reserves all rights to challenge their validity and priority. Additional UCC filings by other agents such as First Corporate Solutions and Corporation Service Company, also exist, though their connections to specific claims are unknown. The Debtor also owes approximately $8,000 on the Mercedes Benz to Bank of America. About East Coast Designs Inc. East Coast Designs, Inc. is a full-service interior design firm with a luxury retail boutique known as Living Swell. East Coast Designs sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-11692) on August 13, 2025, listing up to $500,000 in assets and up to $1 million in liabilities. Diana James, president of East Coast Designs, signed the petition. Kate E. Nicholson, Esq., at Nicholson Devine LLC, represents the Debtor as legal counsel. EAST COAST DESIGNS: Seeks Subchapter V Bankruptcy in Massachusetts ------------------------------------------------------------------ East Coast Designs Inc. filed a voluntary Chapter 11 petition in the District of Massachusetts on August 13, 2025, under Subchapter V as a small business debtor. The company reported assets of $100,001 to $500,000 and liabilities of $500,001 to $1 million, with between one and 49 creditors listed. About East Coast Designs Inc. East Coast Designs Inc. is a specialized design services company based in Marblehead, Massachusetts. It provides professional design services in the interior and home design sector, with operations along the East Coast. East Coast Designs Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-11692) on August 13, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. Honorable Bankruptcy Judge handles the case. The Debtor is represented by Nicholson Devine LLC. EDWARDS BODY: Carol Fox of GlassRatner Named Subchapter V Trustee ----------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Carol Fox of GlassRatner as Subchapter V trustee for Edwards Body Shop & Auto Repair, 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 Edwards Body Shop & Auto Repair Edwards Body Shop & Auto Repair, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-19451) on August 15, 2025, listing between $1 million and $10 million in assets and liabilities. Judge Corali Lopez-Castro presides over the case. ENERGY FOCUS: Reports $231K Net Loss on $1.1M Q2 Revenue -------------------------------------------------------- Energy Focus, Inc., filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $231,000 for the three months ended June 30, 2025, compared to a net loss of $554,000 for the three months ended June 30, 2024. Revenue for the three months ended June 30, 2025, was $1.1 million compared to a revenue of $1.6 million for the same period in 2024. For the six months ended June 30, 2025, the Company reported a net loss of $499,000, compared to a net loss of $972,000 for the same period in 2024. Revenue for the six months ended June 30, 2025 was $1.6 million compared to a revenue of $2.4 million for the same period in 2024. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/33aw4f82 About Energy Focus Solon, Ohio-based Energy Focus -- http://www.energyfocus.com/-- engages primarily in the design, development, manufacturing, marketing, and sale of energy-efficient lighting systems and controls. The Company develops, markets, and sells high-quality light-emitting diode ("LED") lighting and controls products in the commercial market and military maritime market. Columbus, Ohio-based GBQ Partners, LLC, the Company's auditor since 2019, issued a "going concern" qualification in its report dated March 25, 2025, attached in the Company's Annual Report on Form 10-K for the year ended Dec. 25, 2024, citing that the Company has suffered recurring losses from operations and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. For the fiscal year ended Dec. 31, 2024, the Company had $5.6 million in total assets, $2.7 million in total liabilities, and a total stockholders' equity of $2.9 million. As of June 30, 2025, the Company had $4.8 million in total assets, $2 million in total liabilities, and $2.8 million in total stockholders' equity. ERS MEDICAL: Gets Interim OK to Use Cash Collateral Until Sept. 10 ------------------------------------------------------------------ ERS Medical, Inc. received interim approval from the U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division, to use cash collateral. The interim order authorized the Debtor to use cash collateral through Sept. 10 in accordance with its four-week budget. Variances of up to 10% in any line item are permitted so long as the total expenditures do not exceed the total budget for the four-week period. The Debtor projects total operational expenses of $35,750 from Aug. 13 to Sept. 10. As adequate protection for the Debtor's use of their cash collateral, creditors with a security interest in the cash collateral will be granted replacement liens on all assets acquired by the Debtor after its Chapter 11 filing, equal in validity and priority as their pre-bankruptcy liens. The Debtor is not allowed to use cash collateral to pay any wages, draws or other compensation to Anthony McDaniel, chief executive officer and president, other than reimbursement of actual business expenses paid personally, during the interim period. The next hearing is set for September 10. About ERS Medical Inc. ERS Medical Inc. provides biomedical equipment services, including installation, calibration, inspection, and repair, for healthcare facilities. It specializes in life support and general biomedical equipment such as patient monitors, infusion pumps, defibrillators, anesthesia machines, and ultrasound systems. It operates with a team experienced in the biomedical field, including former field service engineers and U.S. Army-trained contractors. ERS Medical sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 25-23668) on July 17, 2025. In its petition, the Debtor reported Â total assets of $125,743 and total liabilities of $1,018,196. Judge Christopher M. Klein handles the case. The Debtor is represented by Arasto Farsad, Esq., at Farsad Law Office, P.C. ES PARTNERS: Court Extends Cash Collateral Access to Sept. 30 ------------------------------------------------------------- ES Partners, Inc. received fourth interim approval from the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, to use cash collateral. The fourth interim order authorized the Debtor to use cash collateral until September 30 to pay the expenses set forth in its budget, with a 10% variance allowed. The budget projects monthly expenses of $368,186.22 for August and $354,021.73 for September. As adequate protection for any diminution of their cash collateral, secured creditors including Truist Bank, Fox Funding Group, LLC and ODK Capital will be granted a replacement lien on property acquired by the Debtor after its Chapter 11 filing. In case the replacement liens are not enough to protect Truist Bank's interest, the bank will receive a superpriority administrative expense claim. The replacement liens do not apply to any avoidance actions and are subject to the fee carveout. As further protection, Truist Bank will continue to receive monthly payments of $8,000. The payments started in May. All three creditors have filed UCC-1 financing statements asserting security interests in the Debtor's assets but Truist Bank holds the first-priority lien covering all assets, including accounts, receivables, equipment, and fixtures. Truist Bank is owed approximately $1.2 million while the estimated value of the secured assets is around $821,000. The next hearing is set for September 30. About ES Partners Inc. ES Partners, Inc. operates a pharmacy delivery company. It operates out of a leased warehouse in Pompano Beach, Fla. ES Partners sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-14211) on April 17, 2025, listing up to $1 million in assets and up to $10 million in liabilities. Steven M. Easton, chief executive officer of ES Partners, signed the bankruptcy petition. Judge Mindy A. Mora oversees the case. Brian K. McMahon, Esq., at Brian K. McMahon, PA, represents the Debtor as legal counsel. Truist Bank, as secured creditor, is represented by: Jay B. Verona, Esq. Shumaker, Loop & Kendrick, LLP 101 E. Kennedy Blvd., Suite 2800 Tampa, FL 33602 Phone (813) 229-7600 Fax (813) 229-1660 jverona@shumaker.com EVOLVE RECOVERY: Seeks Subchapter V Bankruptcy in Florida --------------------------------------------------------- Evolve Recovery Center at Millbury LLC has filed for Chapter 11 bankruptcy in the Southern District of Florida, together with more than 25 affiliated entities operating in the behavioral healthcare industry. According to the petition, the company holds assets valued between $50 million and $100 million, with liabilities estimated between $10 million and $50 million. The filing notes that funds will be available for distribution to unsecured creditors, numbering between 1 and 49. City National Bank of Florida is identified as the largest creditor, with a claim of more than $20.5 million. The case is proceeding as a traditional Chapter 11 reorganization and not under Subchapter V. About Evolve Recovery Center at Millbury LLC Evolve Recovery Center at Millbury LLC is a healthcare provider specializing in addiction treatment and recovery services with a facility in Millbury, Massachusetts. Evolve Recovery Center at Millbury LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-19340) on August 13, 2025. In its petition, the Debtor reports estimated assets between $50 million and $100 million and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Mindy A Mora handles the case. The Debtor is represented by Bradley S. Shraiberg, Esq. at Shraiberg Page PA. EXTREME PROFITS: Files Emergency Bid to Use Cash Collateral ----------------------------------------------------------- Extreme Profits, Inc., a Florida Corporation, asked the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division, for entry of an order authorizing the use of cash collateral and directing customers to pay all post-petition payments to the Debtor. The Debtor proposed to use funds according to an interim budget, requested authority to exceed line items by limited percentages, and offered replacement liens to any actual secured creditors, to the same extent, validity, and priority as existed pre-petition. An adversary proceeding has been initiated by the Debtor to determine the priority and validity of multiple purported secured creditors who filed UCC-1s pre-petition. Because the identities of some secured creditors are unclear, the Debtor seeks a court order rather than creditor consent. Based on the Debtor's preliminary analysis, only PayPal holds a properly perfected first-position blanket lien as of the petition date, securing an estimated $135,872. The Debtor contended that creditors, particularly PayPal, are adequately protected because the business continues to generate revenue and will maintain or increase the collateral base. About Extreme Profits Inc. d/b/a X-Stream Power Washing Extreme Profits Inc., operating as X-Stream Power Washing and Cleaning Services, is a pressure washing and cleaning company based in Key West, Florida. Extreme Profits sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-15709) on May 21, 2025. In its petition, the Debtor reported estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Corali Lopez-Castro handles the case. The Debtor is represented by Kevin C. Gleason, Esq. FAIRFFER OFFER: Vina Property Sale to Moredocks for $129K OK'd -------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Tennessee has permitted Fair Offer Cash Now, Inc., to sell Property, free and clear of liens, claims, interest, and encumbrances. The Debtor's real property includes the real property at 225 Duren Ball Road, Vina, AL 35593, and the Debtor has a fee simple 100% ownership interest in the Property. The Court has authorized the Debtor to sell the Property to Benjiman Moredock and Kimberley Moredock in the amount of $129,300.00. The net proceeds from the sale of the Property after real estate commissions, closing costs, and satisfaction of any outstanding property taxes, if any, shall be deposited into a trust account maintained by the Debtor's counsel, Jay Lefkovitz, pending further orders of the Court. The Sale of the Property to Purchaser for the purchase price of $129,300 under the Agreement shall constitute a transfer for reasonably equivalent value and fair consideration under the Bankruptcy Code and all applicable law. The Purchaser is a "good faith purchaser," as that term is used in the Bankruptcy Code shall be entitled to the protection of the good faith purchaser. About Fair Offer Cash Now, Inc. Fair Offer Cash Now owns 27 properties all located in Alabama, Kentucky, Missouri, Tennessee, Georgia and Mississippi having a total current value of $4.94 million. Fair Offer Cash Now, Inc. in Murfreesboro, TN, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. M.D. Tenn. Case No. 24-03495) on Sept. 11, 2024, listing $4,942,400 in assets and $4,783,400 in liabilities. Bradley Smotherman as president, signed the petition. Judge Charles M Walker oversees the case. LEFKOVITZ & LEFKOVITZ serves as the Debtor's legal counsel. FLEMING STEEL: Gets Interim OK to Use Cash Collateral ----------------------------------------------------- Fleming Steel Co got the green light from the U.S. Bankruptcy Court for the Western District of Pennsylvania for authority to use cash collateral. The court's order authorized the Debtor's interim use of cash collateral in accordance with its approved budget. The Debtor must operate within 10% of the budget. The proceeds from the sale of any collateral of Byline Bank, the primary secured creditor, or any insurance proceeds arising from a casualty or other insured loss of collateral are not available for use as cash collateral but must be delivered to the secured creditor. As adequate protection, Byline will receive a monthly payment of $26,334. In addition, its pre-petition liens will continue post-petition as to both pre-petition and post-petition assets, but the value of Byline's liens must not be greater post-petition than the value thereof as of the petition date. The Debtor's authority to use cash collateral automatically terminates upon the occurrence of so-called events of default which are not cured within 14 days after service of notice. The final hearing is set for September 25. The Debtor holds approximately $1,000 in cash and $121,055 in accounts receivable as of the petition date. Its main physical assets include a $2.2 million facility and $250,000 worth of equipment. Byline holds first-priority liens on the Debtor's inventory, accounts, real property, and improvements through a term loan and line of credit totaling over $2.63 million. Several other lenders, including the U.S. Small Business Administration and multiple alternative finance companies, hold junior blanket liens on the Debtor's assets. Byline Bank is represented by: Justin M. Tuskan, Esq. Metz Lewis Brodman Must O'Keefe, LLC 444 Liberty Avenue, Suite 2100 Pittsburgh, PA 15222 Phone: (412) 918-1100 Facsimile: (412) 918-1199 jtuskan@metzlewis.com About Fleming Steel Co. Fleming Steel Co. based in New Castle, Pennsylvania, designs and manufactures custom doors, including horizontal slide, canopy, vertical lift, craneway and monorail, horizontal swing, fuselage/hull apertures, and specialized application doors. Operating since 1921 under third-generation family ownership, the Company provides engineered solutions for commercial, industrial, aerospace, and government clients, incorporating custom designs for acoustic, blast-resistant, flood control, thermal, and electromagnetic shielding applications. Fleming Steel's projects have served clients such as Boeing, NASA, American Airlines, the United States Navy, and the Smithsonian Air and Space Museum, combining patented door designs with consultation and preventative maintenance services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-22143) on August 15, 2025. In the petition signed by Seth Kohn, president, the Debtor disclosed up to $10 million in both assets and liabilities. Ryan J. Cooney, Esq., at Cooney Law Offices, represents the Debtor as legal counsel. FLOOD SPECIALISTS: Janice Seyedin Named Subchapter V Trustee ------------------------------------------------------------ The U.S. Trustee for Region 11 appointed Janice Seyedin as Subchapter V trustee for Flood Specialists, 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 Flood Specialists Flood Specialists, Inc. filed voluntary Chapter 7 petition (Bankr. N.D. Ill. Case No. 24-15634) on October 19, 2024. The case was converted to a Chapter 11 Subchapter V case on August 15, 2025. Judge Michael B. Slade presides over the case. FOCUS UNIVERSAL: Reports $1.5M Net Loss for Fiscal Q2 ----------------------------------------------------- Focus Universal Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $1.5 million for the three months ended June 30, 2025, compared to a net loss of $1.4 million for the three months ended June 30, 2024. Revenue for the three months ended June 30, 2025, was $35,330 compared to a revenue of $11,234 for the same period in 2024. For the six months ended June 30, 2025, the Company reported a net loss of $2.8 million, compared to a net loss of $2.7 million for the same period in 2024. Revenue for the six months ended June 30, 2025 was $225,585 compared to a revenue of $190,739 for the same period in 2024. Going Concern: The Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these condensed consolidated financial statements. The Company had an accumulated deficit of $28.5 million as of June 30, 2025, and negative cash flow from operating activities of $2.6 million for the six months ended June 30, 2025. Substantial doubt about the Company's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the Company will be unable to meet its obligations as they become due within one year from the financial statement issuance date. The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate continuation of the Company as a going concern. The Company currently suffered recurring loss from operations, generated negative cash flow from operating activities, has an accumulated deficit and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. These conditions raise substantial doubt as to its ability to continue as a going concern. The Company's independent registered public accounting firm, in its report on the Company's consolidated financial statements for the year ended December 31, 2024, has also expressed substantial doubt about the Company's ability to continue as a going concern. At June 30, 2025, the Company had cash and cash equivalents, and short-term investments, in the amount of $1.2 million. The ability to continue as a going concern is dependent on the Company attaining and maintaining profitable operations in the future and raising additional capital to meet its obligations and repay its liabilities arising from normal business operations when they come due. Since inception, the Company has funded its operations primarily through equity and debt financings, and it expects to continue to rely on these sources of capital in the future. Even if the Company is able to obtain additional financing, such financing may bring about undue restrictions on our operations, in the case of debt financing, or cause substantial dilution for our stockholders, in case of equity financing, or grant unfavorable terms in future licensing agreements. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/33aw4f82 About Focus Universal Focus Universal Inc. (NASDAQ: FCUV) is a provider of patented hardware and software design technologies for Internet of Things (IoT) and 5G. The company has developed five disruptive patented technology platforms with 28 patents and patents pending in various phases and 8 trademarks pending in various phases to solve the major problems facing hardware and software design and production within the industry today. These technologies combined to have the potential to reduce costs, product development timelines, and energy usage while increasing range, speed, efficiency, and security. Los Angeles, Calif.-based Weinberg & Company, P.A, the Company's auditor since 2024, issued a "going concern" qualification in its report dated February 28, 2025, citing that the Company has suffered recurring losses from operations and has experienced negative cash flows from operating activities that raise substantial doubt about its ability to continue as a going concern. As of December 31, 2024, the Company had $4.1 million in total assets, $885,089 in total liabilities, and $3.2 million in total stockholders' equity. As of June 30, 2025, the Company had $1.7 million in total assets, $829,224 in total liabilities, and $845,581 in total stockholders' equity. FRESH START: Court OKs Gibsonton Property Sale to DAS Logic ----------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, has approved Fresh Start Development Inc. to sell Property in a private sale, free and clear of liens, claims, interests, and encumbrances. The Debtor's Property is located at 11306 Spivey Road, Gibsonton, Florida 33534. The Court has authorized the Debtor to sell the Property to DAS Logic Services, LLC in the purchase price of $442,000. The Court finds that the sale of the Property was adequately and appropriately marketed and the transaction was negotiated as arms-length for fair market value. The Court held that DAS Logic Services LLC is deemed to be good faith purchaser for value of the Property. The sale under the Contract shall be free and clear of all liens, claims, encumbrances and any other interested as surviving the sale. The Debtor is authorized and approved to pay all necessary and customary closing costs and fees at closing. The Debtor is authorized and approved to pay Loan Funder its full payoff which is approximately $405,226.13. About Fresh Start Development Inc. Fresh Start Development Inc. is a Florida-based development company. Fresh Start Development Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-02855) on May 1, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Catherine Peek Mcewen handles the case. FUEL FITNESS: Gets Extension to Access Cash Collateral ------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, extended Fuel Fitness, LLC's authority to use cash collateral to fund its operations. The 11th interim order authorized the Debtor to use cash collateral pursuant to its monthly budget, which shows total projected expenses of $83,580 for the period from August 22 to September 24. The Debtor's bankruptcy estate has an interest in revenues from the operation of its business. These revenues constitute the cash collateral of secured creditors, including Live Oak Banking Company, Newtek Bank N.A., and SofiaGrey, LLC. The Debtor owes $525,000 to Live Oak, $345,000 to NewTek, $110,000 to Fitness Investment Partners and $77,000 to SofiaGrey. As adequate protection, the secured creditors will be granted a continuing post-petition security interest in and lien on all personal property of the Debtor to the same extent and with the same priority as their pre-bankruptcy liens. As further protection, Live Oak Banking Company will receive payment of $5,000 by September 15. The next hearing is scheduled for September 24. About Fuel Fitness LLC Fuel Fitness, LLC, a company in Raleigh, N.C., filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-03698) on Oct. 22, 2024, with up to $100,000 in assets and up to $10 million in liabilities. Christopher Shawn Stewart, member-manager, signed the petition. Judge Joseph N. Callaway oversees the case. The Debtor is represented by Philip Sasser, Esq., at Sasser Law Firm. Live Oak Banking Company, as secured creditor, is represented by: William Walt Pettit, Esq. Hutchens Law Firm 6230 Fairview Road, Suite 315 Charlotte, NC 28210 Phone: (704) 362-9255 walt.pettit@hutchenslawfirm.com FUEL HOMESTEAD: Gets Extension to Access Cash Collateral -------------------------------------------------------- Fuel Homestead, LLC received another extension from the U.S. Bankruptcy Court for the Eastern District of North Carolina, to use cash collateral. The court's 11th interim order authorized the Debtor to use cash collateral pursuant to its budget, which shows total projected expenses of $91,960 for the period from August 22 to September 24. The Debtor's bankruptcy estate has an interest in revenues from the operation of its business. These revenues constitute the cash collateral of secured creditors, including Live Oak Banking Company, Fitness Investment Partners, Newtek, and SofiaGrey, LLC. The Debtor owes $525,000 to Live Oak, $345,000 to NewTek, $110,000 to Fitness Investment Partners and $77,000 to SofiaGrey. As adequate protection, the secured creditors will be granted a continuing post-petition security interest in and lien on all personal property of the Debtor to the same extent and with the same priority as their pre-bankruptcy liens. As additional protection, Live Oak Banking Company will receive payment in the amount of $5,000 by Sept. 15. The next hearing is set for September 24. About Fuel Homestead Fuel Homestead, LLC, a company in Raleigh, N.C., sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 24-03699) on October 22, 2024, with up to $100,000 in assets and up to $10 million in liabilities. Christopher Shawn Stewart, member-manager, signed the petition. Judge Joseph N. Callaway oversees the case. The Debtor is represented by Philip Sasser, Esq., at Sasser Law Firm. Live Oak Banking Company, as secured creditor, is represented by: William Walt Pettit, Esq. Hutchens Law Firm 6230 Fairview Road, Suite 315 Charlotte, NC 28210 (704) 362-9255 walt.pettit@hutchenslawfirm.com GD TRANSPORT: Gets OK to Use Cash Collateral Until Sept. 3 ---------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division issued a second interim order allowing GD Transport, LLC to use cash collateral through September 3. The second interim order signed by Judge Lori Vaughan 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 Wex Bank (or Wex Capital). The Debtor projects total operational expenses of $625,891.19 for the period from August 4 to September 22. As adequate protection, Wex Bank will be granted a replacement lien on cash collateral to the same extent, validity, and priority as its pre-petition lien. In addition, the Debtor was ordered to keep its property insured in accordance with the obligations under all applicable loan and security documents. The next hearing is set for September 3. About GD Transport LLC GD Transport, LLC provides transportation and logistics services for national and international shipments. It operates with a modern fleet and offers customized logistics solutions across land, sea, and air. Founded in 2006, GD Transport focuses on timely delivery, safety, and client-focused service. GD Transport sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-03699) on June 16, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Judge Lori V. Vaughan handles the case. The Debtor is represented by Daniel A. Velasquez, Esq., at Latham, Luna, Eden & Beaudine, LLP. GENESIS GLOBAL: Asks Court Not to Push Back Ch. 11 DIP Approval --------------------------------------------------------------- Clara Geoghegan of Law360 Bankruptcy Authority reports that on Thursday, August 21, 2025, bankrupt nursing home operator Genesis urged a Texas bankruptcy judge to move forward with final approval of its $30 million debtor-in-possession loan, pushing back against the unsecured creditors committee's arguments that superior financing options are available and that the funding is not immediately necessary. About Genesis Global Genesis Global Holdco, LLC, through its subsidiaries, and Global Trading, Inc., provide lending and borrowing, spot trading, derivatives and custody services for digital assets and fiat currency. Genesis Global Capital, LLC (GGC) and Genesis Asia Pacific PTE. LTD. (GAP) provide lending and borrowing, spot trading, derivatives and custody services for digital assets and fiat currency. Genesis Global Holdco, LLC owns 100% of GGC and GAP. Genesis Global Holdco, LLC, GGC and GAP each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 23-10063) on Jan. 19, 2023. The cases are pending before the Honorable Sean H. Lane. At the time of the filing, Genesis Holdco reported $100 million to $500 million in both assets and liabilities. Genesis Holdco is a sister company of Genesis Global Trading, Inc. ("GGT") and 100% owned by Digital Currency Group, Inc. ("DCG"). GGT, DCG and certain of the Holdco subsidiaries are not included in the Chapter 11 filings. The non-debtor subsidiaries include Genesis UK Holdco Limited, Genesis Global Assets, LLC, Genesis Asia (Hong Kong) Limited, Genesis Bermuda Holdco Limited, Genesis Custody Limited ("GCL"), GGC International Limited ("GGCI"), GGA International Limited, Genesis Global markets Limited, GSB 2022 II LLC, GSB 2022 III LLC and GSB 2022 I LLC. The Debtors tapped Cleary Gottlieb Steen & Hamilton, LLP as bankruptcy counsel; Morrison Cohen, LLP as special counsel; Alvarez & Marsal Holdings, LLC as financial advisor; and Moelis & Company, LLC as investment banker. Kroll Restructuring Administration, LLC, is the Debtors' claims and noticing agent and administrative advisor. The ad hoc group of creditors is represented by Kirkland & Ellis, LLP and Kirkland & Ellis International, LLP. The ad hoc group of Genesis lenders is represented by Proskauer Rose, LLP. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee tapped White & Case, LLP as bankruptcy counsel; Houlihan Lokey Capital, Inc., as investment banker; Berkeley Research Group, LLC as financial advisor; and Kroll as information agent. GILBERT LEGGETT: Court Extends Cash Collateral Access to Sept. 13 ----------------------------------------------------------------- Gilbert Leggett Farms, Inc. received second interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to use cash collateral. The court's order authorized the Debtor's interim use of cash collateral from August 15 to September 13 to pay the expenses set forth in its budget, with a 10% variance allowed per line item. The Debtor projects total operational expenses of $79,500 for the interim period. Secured creditors Ag Resource Management/Agrifund, LLC and AgCarolina Farm Credit, ACA assert liens on the Debtor's assets, including cash collateral. A subordination agreement gives Agrifund a first priority status. As adequate protection, the security interests granted to the secured creditors under their respective pre-bankruptcy loan agreements will continue to attach to the collateral set forth in the loan agreements with respect to property acquired by the Debtor after the petition date. These security interests will have the same relative priority and extent as the security interests that existed as of the petition date but the scope will be limited to the Debtor's use of cash collateral. The interim order will remain in full force and effect until the earlier of September 13 unless terminated earlier by agreement; entry of an order by the court terminating the interim order for cause, including but not limited to, breach of its terms and conditions; confirmation of a plan of reorganization; or upon filing of a notice of default, whichever comes first. The next hearing is scheduled for September 10. About Gilbert Leggett Farms Inc. Gilbert Leggett Farms, Inc. grows and sells sweet potato seed plants, including the Covington variety, and is also involved in cultivating crops such as peanuts, sweet corn, and cotton. Gilbert Leggett Farms sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-02668) on July 14, 2025. In its petition, the Debtor reported total assets of $2,329,639 and total liabilities of $2,340,328. Judge Pamela W. Mcafee handles the case. David J. Haidt, Esq., at Ayers & Haidt, P.A. is the Debtor's legal counsel. Ag Resource Management/Agrifund, LLC, as secured creditor, is represented by: Ciara L. Rogers, Esq. Waldrep Wall Babcock & Bailey, PLLC 3600 Glenwood Avenue, Suite 210 Raleigh, NC 27612 Telephone: 919-589-7985 crogers@waldrepwall.com AgCarolina Farm Credit, ACA, as secured creditor, is represented by: Matthew P. Weiner, Esq. Poyner Spruill, LLP P.O. Box 1801 Raleigh, NC 27602-1801 Telephone: (919) 783-6400 Facsimile (919) 783-1075 mweiner@poynerspruill.com GLOBAL DIGITAL: Section 341(a) Meeting of Creditors on September 9 ------------------------------------------------------------------ Global Digital Marketing Group LLC filed for Chapter 11 bankruptcy on August 13, 2025, in the Western District of Texas, choosing to proceed under Subchapter V as a small business debtor. The company disclosed assets between $100,001 and $500,000 and liabilities of $500,001 to $1 million, with fewer than 50 creditors. A meeting of creditors under Section 341(a) to be held on September 9, 2025 at 01:00 PM via Via Phone: (866)909-2905; Code: 5519921#. About Global Digital Marketing Group LLC Global Digital Marketing Group LLC, doing business as Reputation Guards, is a San Antonio-based digital marketing firm specializing in online reputation management services. The company provides digital marketing solutions to help clients manage and improve their online presence. Global Digital Marketing Group LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-51857) on August 1, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. The Debtor is represented by Morris E. "Trey" White, III, Esq. at Villa & White LLP. GLOBAL DIGITAL: Todd Headden Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 7 appointed Todd Headden as Subchapter V trustee for Global Digital Marketing Group, LLC. Mr. Headden will charge $400 per hour for his services as Subchapter V trustee and $150 per hour for his support staff. The trustee will also seek reimbursement for work-related expenses incurred. Mr. Headden declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Todd Headden 7600 Burnet Rd., Ste. 530 Austin, TX 78757 Telephone: (737) 881-7104 theadden@haywardfirm.com About Global Digital Marketing Group Global Digital Marketing Group, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Texas Case No. 25-51857) on August 13, 2025, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Morris Eugene White, III, Esq., at Villa & White, LLP represents the Debtor as legal counsel. GREGORY NATHAN: To Sell Business Assets to Masso Enterprises ------------------------------------------------------------ The Gregory Nathan Gould Co., LLC, seeks approval from the U.S. Bankruptcy Court for the Southern District of Ohio, Eastern Division, to sell substantially all Assets, free and clear of claims, liens, and encumbrances. The Debtor is an Ohio limited liability company with its principal place of business located in Franklin County, Ohio. The Debtor is owned and operated by Mr. Gould, and it has been the intention of the Debtor for some time to sell its business operations. Prior to the filing of this case, back in 2019, the Debtor had filed another chapter 11 bankruptcy case through which it sought to facilitate the sale of its assets. The Debtor was unable to find a suitable buyer at that time, and the prior case was dismissed so that the Debtor could reorganize under the new subchapter V procedure. Nonetheless, it has long been a goal of the Debtor to sell its operations. The Debtor will sell to the Purchaser all the Purchased Assets as that term is defined in the Agreement. The Purchased Assets consist of all the physical and intangible property associated with the Debtor's operations, which operations are defined in the Agreement. The Purchased Assets include the following categories of items as fully defined in the Agreement. a. Furniture, Fixtures and Equipment – Specifically set forth on an exhibit to the Agreement is a list of tangible assets included in the sale, including, but not limited to, furniture, fixtures, instruments, equipment, tools, office equipment, supplies, computers, and telephones. b. Accounts Receivable – The sale includes all of Seller's accounts receivable, including payment terms, due dates, and any associated bad debt expenses and write-offs. c. Inventory – The sale includes all of Seller's inventory of items regularly sold by Seller, if any as of closing. d. Intellectual Property – Specifically set forth on an exhibit to the Agreement is a list of intellectual and other intangible property that is included in the sale, including, for example, domain names, trade names, digital assets, policies, procedures, and other matters used within the Business. e. Contracts– Specifically set forth on an exhibit to the Agreement is a list of the Debtor's executory contracts and leases that Purchaser has agreed to assume, including the Debtor’s real estate lease, its agreements with independent contractors, and certain customer agreements. The Debtor has agreed to sell the Purchased Assets to the Purchaser for an amount consisting of $300,000.00 up front paid after court approval plus an additional amount between $100,000.00 to $125,000.00 over four years from the ongoing revenues of the Purchaser. The Upfront Payment is an amount sufficient to pay all of the Debtor's Plan obligations. The proposed purchaser is Masso Enterprises, LLC, an Ohio limited liability company formed for this transaction by Matthew Masso. Mr. Masso has previously worked for the Debtor as a music instructor, but is otherwise unaffiliated with the Debtor, or its owner, Gregory Nathan Gould. The Debtor seeks authorization to distribute the sale proceeds in accordance with the Plan as follows: a. First, to Huntington in an amount sufficient to pay its Class 2 secured claim in full. Huntington has recently provided a payoff statement to the Debtor for the sum of $87,862.45, but the Debtor seeks authority to pay Huntington in full whatever amount is due to it as of the time of closing on the sale based on an updated payoff. b. Second, to Donald W. Mallory, the Subchapter V Trustee, an amount equal to the remaining Class 4 payments due to general unsecured creditors. The Debtor has completed the payment of all Plan payments for the first three years of the Plan, leaving the sum of $28,091.77 due for the remaining year of the Plan. Those funds will be paid to the Trustee for distribution to Class 4 creditors. c. Third, to be retained by the Debtor in an amount necessary to pay all remaining administrative claims to be paid under the Plan, including professional fees accrued by the Debtor's counsel and the Trustee, and any final operating bills and expenses (i.e. final utility bills). d. Finally, the remainder of the funds to be held by the Debtor for distribution in accordance with the Plan. The Debtor presently anticipates using the remaining funds to pay Mr. Gould for the last three years of unpaid wages due to him that have accrued but have never been paid, but may also allocate the funds to Class 5 equity claims should it be appropriate. The sale of the Purchased Assets is requested to be free and clear of any claim, liens, and encumbrances. The Debtor requests that the Court order that it shall not be required to make any representations or warranties of any kind, express or implied, with respect to any matter relating to the Purchased Assets. About The Gregory Nathan Gould Co., LL The Gregory Nathan Gould Co., LL is an Ohio limited liability company with its principal place of business located in Franklin County, Ohio. The Gregory Nathan Gould Co., LLC, filed a second Chapter 11 bankruptcy petition (Bankr. S.D. Ohio Case No. 21-50172) on Jan. 20, 2021. The Debtor's first petition was filed (Bankr. S.D. Ohio Case No. 19-52361) on April 12, 2019, listing under $1 million in both assets and liabilities. Judge Mina Nami Khorrami presides over the case. James A Coutinho at Allen Stovall Neuman & Ashton LLP serves as the Debtor's legal counsel. GRESHAM WORLDWIDE: Court Approves Plan for Oct. 1 Chapter 11 Exit ----------------------------------------------------------------- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company, announced on Aug. 21, 2025, that Gresham Worldwide, Inc., currently an affiliated defense business in which the Company holds a majority equity interest, has received final court approval and confirmation of its Chapter 11 plan of reorganization. The approved plan clears the way for Gresham Worldwide to successfully emerge from bankruptcy protection on October 1, 2025. Upon emergence, Hyperscale Data expects to reconsolidate Gresham Worldwide as a direct subsidiary. The Company anticipates Gresham Worldwide will contribute approximately $40 million in annualized sales to consolidated results, further strengthening Hyperscale Data's diversified platform and supporting long-term growth. "This is a pivotal milestone for both Hyperscale Data and Gresham Worldwide," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data. "Court confirmation of the plan enables Gresham Worldwide to emerge from Chapter 11 with renewed financial strength and operational stability. We believe the business is well positioned to deliver meaningful revenue and long-term value for our stockholders." The confirmed plan reflects the outcome of extensive negotiations among creditors, management and other stakeholders, positioning Gresham Worldwide with a stronger balance sheet and a solid foundation for future success. For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data's public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov. About Hyperscale Data, Inc. Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ("AI") ecosystems and other industries. Hyperscale Data's other wholly owned subsidiary, Ault Capital Group, Inc. ("ACG"), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Hyperscale Data currently expects the divestiture of ACG (the "Divestiture") to occur in the first quarter of 2026. Upon the occurrence of the Divestiture, the Company will be an owner and operator of data centers to support high-performance computing services, as well as a holder of digital assets. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive and hotel operations. In addition, ACG is actively engaged in providing private credit and structured finance through a licensed lending subsidiary. Hyperscale Data's headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141. On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the "Series F Preferred Stock") to all common stockholders and holders of the Series C Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the "ACG Shares"). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be stockholders of ACG upon the occurrence of the Divestiture. About Gresham Worldwide Gresham Worldwide, Inc. designs, manufactures, and distributes purpose-built electronics equipment, automated test solutions, power electronics, supply and distribution solutions, as well as radio, microwave, and millimeter wave communication systems and components for a variety of applications with a focus on the global defense industry and the healthcare market. Gresham Worldwide sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06732) on Aug. 14, 2024. In the petition filed by Lutz P. Henckels, chief financial officer, the Debtor disclosed $32,859,000 in assets and $39,786,000 in liabilities as of June 30, 2024. Judge Scott H. Gan oversees the case. Patrick A. Clisham, Esq., at Engelman Berger, PC serves as the Debtor's legal counsel. The U.S. Trustee appointed an official committee of unsecured creditors in this Chapter 11 case. The committee tapped Stinson, LLP as legal counsel. Arena Investors, LP, as lender, is represented by: Robert P. Harris, Esq. Jason D. Curry, Esq. Quarles & Brady, LLP 2 North Central Avenue, Suite 600 Phoenix, AZ 85004 Telephone: (602) 229-5200 robert.harris@quarles.com jason.curry@quarles.com Ault Lending, LLC, as lender, is represented by: Christopher C. Simpson, Esq. Warren J. Stapleton, Esq. Andrew B. Haynes, Esq. Osborn Maledon, P.A. 2929 North Central Avenue, 20th Floor Phoenix, AZ 85012-2793 (602) 640-9000 csimpson@omlaw.com wstapleton@omlaw.com ahaynes@omlaw.com HALL OF FAME: Reports Fiscal Q2 Net Loss of $12 Million ------------------------------------------------------- Hall of Fame Resort & Entertainment Co. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $12 million for the three months ended June 30, 2025, compared to a net loss of $15.5 million for the three months ended June 30, 2024. Revenue for the three months ended June 30, 2025, was $4.3 million compared to a revenue of $4.7 million for the same period in 2024. For the six months ended June 30, 2025, the Company reported a net loss of $27 million, compared to a net loss of $30.1 million for the same period in 2024. Revenue for the six months ended June 30, 2025 was $1.2 million compared to a revenue of $1.5 million for the same period in 2024. As of June 30, 2025, the Company's accumulated deficit was $301.1 million as of such date. Since inception, the Company's operations have been funded principally through the issuance of debt and equity. As of June 30, 2025, the Company had approximately $0.8 million of unrestricted cash and $4.4 million of restricted cash. Through June 30, 2026, the Company had $126 million in debt principal payments coming due. At August 12, 2025, the Company's cash position is deficient and certain payments for our operations are not being made in the ordinary course of business. "Certain of our liquidity requirements have been, and may continue to be, funded in part by loans from CHCL, an affiliate of the Company's director Stuart Lichter, and certain other affiliates of Mr. Lichter." "We will need to raise additional financing to accomplish our development plan and fund our working capital. We are seeking to obtain additional funding through debt, construction lending, and equity financing. There are no assurances that we will be able to raise capital on terms acceptable to the Company or at all. Cash flows generated from our operations are insufficient to meet our current operating costs. If we are unable to obtain sufficient amounts of additional capital, we may be required to reduce the scope of our planned development, which could harm our financial condition and operating results, or we may not be able to continue to fund or must significantly curtail our ongoing operations. These conditions raise substantial doubt about our ability to continue as a going concern to sustain operations for at least one year from the issuance of these condensed consolidated financial statements," the Company concluded. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/mw4zmmc5 About Hall of Fame Resort Hall of Fame Resort & Entertainment Co. is a resort and entertainment company leveraging the power and popularity of professional football and its legendary players in partnership with the National Football Museum, Inc., doing business as the Pro Football Hall of Fame. Headquartered in Canton, Ohio, the Company owns the DoubleTree by Hilton located in downtown Canton and the Hall of Fame Village, which is a multi-use sports, entertainment, and media destination centered around the PFHOF's campus. Cleveland, Ohio-based Grant Thornton LLP, the Company's auditor since 2023, issued a "going concern" qualification in its report dated March 26, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has sustained recurring losses through December 31, 2024 and utilized cash from operations of $10.9 million during the year ended December 31, 2024. The Company has $109.5 million of debt due through December 31, 2025, and will need to raise additional financing to accomplish its development plans and fund its working capital. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $366.7 million in total assets, $294.5 million in total liabilities, and a total equity of $72.2 million. As of June 30, 2025, the Company had $360.5 million in total assets, $315.7 million in total liabilities, and $44.8 million in total equity. HARDING BELL: Seeks to Amend Cash Collateral Order -------------------------------------------------- Harding Bell International, Inc. asks the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, for entry of an order modifying the payment structure under the existing cash collateral order to remain in good standing with one of its secured creditors, Cogent Bank. The Debtor filed for Chapter 11 bankruptcy and continues to operate as a debtor-in-possession under U.S.C. Section sections 1107 and 1108. At the outset of the case, the Debtor believed it was current on its obligations to its two secured lenders -- Cogent Bank and SouthState Bank -- and filed an emergency motion to use cash collateral from both lenders. The court granted this request via a first interim order on July 30, which also scheduled a follow-up hearing for September 30. However, shortly after entry of the first interim order, Cogent Bank notified the Debtor that its July loan payment had been returned for insufficient funds. Although Cogent initially attempted to assess a late fee, it later agreed not to assess such fees against the Debtor itself though it reserved the right to assess late fees against any co-obligors. The Debtor notes that its president and majority shareholder, Matthew Bell, signed the loan note both individually and as president, potentially exposing him to personal liability. More importantly, due to how Cogent applied the payments, the Debtor is now technically behind on its loan obligations. Specifically, Cogent applied the Debtor's August payment (made around August 5, 2025) to the missed July payment. As of August 18, Cogent considers the August payment late and now claims a total of $36,909 due, including late fees. Under the first interim order, the Debtor was to pay Cogent $35,131 per month beginning August 10, but that arrangement assumed the loan was current. To resolve this discrepancy and avoid a continuing technical default, the Debtor seeks court authorization to make a "catch-up payment" of $35,151 plus any accrued late fees. This payment would bring the loan current as of August and satisfy Cogent's concerns. Cogent Bank has reviewed the motion and the proposed order and agrees to the requested relief. If the catch-up payment is made and future payments continue as required, Cogent will consider the loan current for all obligors and guarantors, including Mr. Bell. A copy of the motion is available at https://urlcurt.com/u?l=G061kw from PacerMonitor.com. About Harding Bell International Inc. Harding Bell International, Inc. is a certified public accounting firm based in Central Florida that provides tax preparation, business support, and FIRPTA services to U.S. and international clients. The firm serves over 9,000 clients across 22 U.S. states and more than 170 countries, with a focus on real estate investment and cross-border tax matters. Founded in 2000, it operates six offices in the region. Harding Bell International sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04912) on July 17, 2025. In its petition, the Debtor reported total assets of $3,826,150 and total liabilities of $6,221,386. Judge Roberta A. Colton handles the case. Aaron A. Wernick, Esq., at Wernick Law, PLLC is the Debtor's legal counsel. SouthState Bank, as secured creditor, is represented by Christian P. George, Esq. at Akerman LLP. Cogent Bank, as secured creditor, is represented by Bradley M. Saxton, Esq. at Winderweedle, Haines, Ward & Woodman, P.A. HIGH PLAINS: Hires Condon Tobin Sladek Sparks as Attorney --------------------------------------------------------- High Plains Radio Network, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Condon Tobin Sladek Sparks Nerenberg, PLLC as attorney. The firm will provide these services: (a) advise the Debtor of the rights, powers, duties, and obligations of the Debtor as debtor and debtor-in-possession in this Chapter 11 case; (b) take all necessary actions to protect and preserve the estates of the Debtor, including the prosecution of actions on the Debtor's behalf, the defense of actions commenced against the Debtor, the negotiation of disputes in which the Debtor are involved, and the preparation of objections with respect to claims that are filed against the estate; (c) to the extent necessary, assist the Debtor in the investigation of the acts, conduct, assets, and liabilities of the Debtor, and any other matters relevant to the case; (d) investigate and potentially prosecute preference, fraudulent transfer, and other causes of action arising under the Debtor's avoidance powers and/or which are property of the estate; (e) prepare on behalf of the Debtor, as debtor-in-possession, all necessary motions, applications, answers, orders, reports, and papers in connection with the representation of the Debtor and the administration of the estates and this Chapter 11 case; (f) negotiate, draft, and present on behalf of the Debtor a plan for the reorganization of the Debtor's financial affairs, and the related disclosure statement, and any revisions, amendments, and so forth, relating to the foregoing documents, and all related materials; and (g) perform all other necessary legal services in connection with this Chapter 11 case and any other bankruptcy-related representation that the Debtor require. The firm will be paid at these rates: Attorneys $800 to $500 per hour Paraprofessional $250 to $350 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Jeff Carruth, a partner at Condon Tobin Sladek Sparks Nerenberg, 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: Jeff Carruth, Esq. Condon Tobin Sladek Sparks Nerenberg, PLLC 8080 Park Lane, Suite 700 Dallas, TX 75231 Tel: (214) 265-3834 Fax: (214) 691-6311 Email: jcarruth@condontobin.com About High Plains Radio Network High Plains Radio Network, LLC is in the radio broadcasting business. High Plains Radio Network filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Texas Case No. 24-70089) on March 26, 2024, with $1 million to $10 million in both assets and liabilities. Monte L. Spearman, manager, signed the petition. Honorable Bankruptcy Judge Scott W. Everett handles the case. The Debtor is represented by: Jeffery D. Carruth, Esq. Weycer Kaplan Pulaski & Zuber, P.C. Tel: (713) 341-1158 Email: jcarruth@wkpz.com ICAN BENEFIT: To Sell Class Claims to EmpireMC for $12K ------------------------------------------------------- Alan Barbee, as Plan Trustee of iCan Benefit Group, LLC, seeks permission from the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, to sell Property, free and clear of liens, claims, interests, and encumbrances. The Debtor was an operating insurance agency that offered products from licensed carriers to the public. The Debtor is one of the class claimants in the Litigation that was filed by several merchants against Visa, Inc., Mastercard Incorporated, Bank of America, N.A., and other credit and financial institutions. After thirteen years of litigation, the parties reached a settlement for approximately $5.54 billion. Subject to limited exceptions, the claimants consist of all merchant persons that accepted any Visa- or Mastercard-branded cards in the United States from January 1, 2004 to January 25, 2019. The amounts paid to potential claimants are based on their actual or estimated interchange fees attributable to Visa and Mastercard transactions during the relevant time period. The claims bar date in the Litigation was February 4, 2025. In 2024 the Trustee timely filed two claims that allege interchange fees in the respective amounts of $1,193,070.00 and $3,217.00 (Claims). The former claim was filed on behalf of the Debtor, iCan Benefit Group, LLC, and the latter claim on behalf of a wholly owned subsidiary of the Debtor, iCan Insurance Group, LLC. A website that describes the Litigation and permits claimants to file claims is located at https://www.paymentcardsettlement.com/en. The Trustee has contacted multiple prospective purchasers in an effort to liquidate the Claims. After various discussions, the Trustee has received a purchase offer of $12,000.00 from EmpireMC, LLC. The members of the Buyer are certain former employees of the Debtor. However, the Debtor has been defunct since the Plan was confirmed, the employment of the members by the Debtor terminated years ago, and none of the members is otherwise affiliated with or related to the Trustee. As such, the Trustee submits that the Buyer is not an insider. The Trustee believes that the purchase offer set forth in the Asset Purchase Agreement (APA) is fair and reasonable and reflects market conditions. Additionally, the Trustee believes that the Claims are the last significant asset to be liquidated prior to closing the case. The Trustee incurs administrative costs remaining in bankruptcy, and cannot hold the Claims indefinitely in order to receive distributions. The Trustee submits that entry into the APA reflects a reasonable exercise of his business judgment. The Trustee respectfully submits that all of the factors demonstrating his sound business judgments are met, APA should be approved. The purchase price, $12,000.00, accords with what the Trustee believes to be the fair market value for the Claims. About iCan Benefit Group, LLC iCan Benefit Group, LLC -- https://icanbenefit.com/ -- is a licensed insurance agency offering a variety of benefit programs and insurance products from a number of licensed insurance companies. It is based in Boca Raton, Fla. iCan Benefit Group sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 21-12567) on March 18, 2021. In the petition signed by Stephen M. Tucker, manager, the Debtor disclosed $10 million to $50 million in both assets and liabilities. Judge Erik P. Kimball oversees the case. Agentis, PLLC serves as the Debtor's legal counsel. Alan Barbee was appointed as trustee in this Chapter 11 case. The trustee tapped the law firm of Shraiberg, Landau & Page, PA as his counsel. IDEAL HEALTH: Seeks Continued Cash Collateral Access ---------------------------------------------------- Ideal Health and Fitness Corp. asked the U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division, for authority to continue using cash collateral. The cash collateral is the Debtor's sole source of operational funds consisting of revenues from gym memberships and fitness class fees. Without access to this cash collateral, the Debtor said it will be unable to maintain business operations, pay employees, meet rent and insurance obligations, or preserve the value of the bankruptcy estate, causing immediate and irreparable harm to both the business and its creditors. The Debtor believes the cash collateral is subject to UCC liens held by Kapitus, LLC, Black Olive Capital LLC, Everest Business Funding, and Funding Futures LLC. It sought to use these funds strictly in accordance with a six-month budget. All proposed expenditures are said to relate directly to the preservation of estate assets and ongoing operational needs. A hearing on the matter is set for September 8. About Ideal Health and Fitness Corp. Ideal Health and Fitness Corp. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-25682) on December 18, 2024, with up to $500,000 in assets and up to $1 million in liabilities. Ben Ragsac, Jr., president and chief executive officer of Ideal Health and Fitness, signed the petition. Judge Frederick E. Clement oversees the case. Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger, represents the Debtor as bankruptcy counsel. INTERNATIONAL DIRECTIONAL: Gets Interim OK to Use Cash Collateral ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division granted International Directional Drilling, Inc. interim approval to use cash collateral. The interim order authorized the Debtor to use cash collateral to pay the expenses set forth in its budget, subject to a 10% variance of any particular line-item expense on the budgets. As adequate protection, Locality Bank and other secured creditors will be granted a replacement lien on the Debtor's post-petition cash collateral, to the same extent as any pre-bankruptcy lien. In addition, the Debtor will keep its property insured in accordance with its loan and security agreements with Locality Bank. Locality Bank reserves the right to request adequate protection payments. The next hearing is set for September 10. Locality Bank, as secured creditor, is represented by: J. Ellsworth Summers, Jr., Esq. Burr & Forman, LLP 50 North Laura Street, Suite 3000 Jacksonville, FL 32202 Phone: (904) 232-7200 Fax: (904) 232-7201 ESummers@burr.com About International Directional Drilling Inc. International Directional Drilling, Inc. is a company specializing in directional drilling services that provides specialized drilling services for oil and gas exploration, utility installation, or other underground infrastructure projects where non-vertical well drilling techniques are required. International Directional Drilling sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-17606) on July 2, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Honorable Bankruptcy Judge Scott M. Grossman handles the case. Chad T. Van Horn, Esq., is the Debtor's bankruptcy counsel. J INTERNATIONAL: Gets Interim OK to Use Cash Collateral ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada issued an interim order granting J International Management, LLC authority to use cash collateral pending a final hearing on September 22. The interim order authorized the Debtor to use cash collateral only in the ordinary course of business and in line with the submitted budget, subject to a 10% variance. The Debtor is prohibited from granting liens or security interests equal or senior to existing pre-petition liens. As adequate protection, the Debtor must continue its monthly payments of $13,497.37 to EverTrust Bank, N.A. In addition, EverTrust will be granted a superpriority claim against the Debtor and its estate, and valid and perfected replacement security interests in and liens on the Debtor's assets and proceeds thereof, but only to the extent of any post-petition decrease in the value of its security interests in the cash collateral. About J International Management LLC J International Management LLC, operating as Gabi Coffee, is a hospitality business based in Las Vegas, Nevada, that runs a specialty cafe and bakery at 5808 Spring Mountain Rd., Suite 104. The Company offers a blend of traditional oriental and modern Western-inspired beverages and baked goods, serving hot and iced drinks alongside freshly baked bread and various sweet and savory food items. It operates daily, providing local customers and visitors a unique cafe experience combining cultural aesthetics and fresh bakery products. J International Management LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-14602) on August 8, 2025. In its petition, the Debtor reports total assets of $128,543 and total liabilities of $4,243,957. Honorable Bankruptcy Judge August B. Landis handles the case. The Debtor is represented by Matthew C. Zirzow, Esq. at LARSON & ZIRZOW, LLC. JACKSBOSTON LLC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Jacksboston, LLC 915 Ennis Road Angier, NC 27501 Business Description: Jacksboston, LLC, doing business as Blue Pack Marketing, provides custom printing and marketing services, including screen printing, embroidery, laser etching, direct- to-garment printing, vinyl applications, signage, and banners, as well as graphic design, social media marketing, and website development. Founded in 2014 in North Carolina, the Company serves a range of clients with products such as apparel, tumblers, and promotional items, offering both bulk and small orders. It operates in the marketing and custom merchandise industry, focusing on brand development, supply chain logistics, and multi-channel advertising solutions. Chapter 11 Petition Date: August 21, 2025 Court: United States Bankruptcy Court Eastern District of North Carolina Case No.: 25-03234 Judge: Hon. Pamela W Mcafee Debtor's Counsel: Danny Bradford, Esq. PAUL D. BRADFORD, PLLC 455 Swiftside Drive Suite 106 Cary, NC 27518-7198 Tel: (919) 758-8879 Fax: (919) 803-0683 E-mail: dbradford@bradford-law.com Total Assets: $132,575 Total Liabilities: $2,639,683 The petition was signed by Cortland Rush as CEO. 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/AAJ3Z7I/Jacksboston_LLC__ncebke-25-03234__0001.0.pdf?mcid=tGE4TAMA JMC UNIT 1: Aleida Martinez Molina Named Subchapter V Trustee ------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Aleida Martinez Molina, Esq., as Subchapter V trustee for JMC Unit 1, 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 JMC Unit 1 JMC Unit 1, LLC, doing business as WaveMAX Hialeah, operates a full-service laundromat in Hialeah, Florida, providing self-service laundry, wash-dry-fold, dry cleaning, and scheduled pickup and delivery services. It also offers commercial laundry solutions to businesses including colleges, health clubs, medical offices, country clubs, Airbnb rentals, and salons. Its operations emphasize modern equipment, customer convenience, and rapid turnaround. JMC Unit 1 filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-19413) on August 14, 2025, with $500,000 to $1 million in assets and $1 million to $10 million in liabilities. John Cooper, president and authorized representative, signed the petition. Jacqueline Calderin, Esq., at Agentis, PLLC represents the Debtor as legal counsel. JMC UNIT 1: Files Emergency Bid to Use Cash Collateral ------------------------------------------------------ JMC Unit 1, LLC asked the U.S. Bankruptcy Court for the Southern District of Florida, for authority to use cash collateral and provide adequate protection. The Debtor operates a coin laundry in Hialeah, Florida, and recently initiated bankruptcy proceedings on August 14 to restructure its business, including transitioning from a franchise to an independent operation. The Debtor urgently requested this relief to avoid immediate and irreparable harm to its operations, which would occur without the ability to meet ordinary business expenses such as payroll, utilities, and maintenance. The cash collateral in question secures a loan originally issued on March 30, 2021, by First Port City Bank, backed by the U.S. Small Business Administration, in the amount of $1.2 million. As of the petition date, the loan balance is approximately $1.1 million. First Port City Bank holds a perfected security interest in all of the Debtor's assets, as well as a recorded mortgage on the home of the Debtor's principal. The secured creditor has consented to the Debtor's use of cash collateral, subject to adequate protection. The Debtor requested that the court authorize it to use cash collateral pursuant to a detailed interim budget, which outlines essential operational expenses for the immediate period. As adequate protection, the Debtor proposed granting the secured creditor replacement liens on all post-petition assets to the same extent, validity, and priority as their pre-petition security interests, and if necessary, administrative expense claims. These replacement liens will be subordinate to court-approved professional fees and court costs but will be deemed valid and perfected without further documentation. To provide operational flexibility, the Debtor also sought approval to exceed individual line items in the interim budget by up to 10%, or by more if the overall budget is not exceeded by more than 10%. About JMC Unit 1 LLC JMC Unit 1, LLC, doing business as WaveMAX Hialeah, operates a full-service laundromat in Hialeah, Florida, providing self-service laundry, wash-dry-fold, dry cleaning, and scheduled pickup and delivery services. The Company also offers commercial laundry solutions to businesses including colleges, health clubs, medical offices, country clubs, Airbnb rentals, and salons. Its operations emphasize modern equipment, customer convenience, and rapid turnaround. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-19413) on August 14, 2025. In the petition signed by John Cooper, president and authorized representative, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Jacqueline Calderin, Esq., at AGENTIS PLLC, represents the Debtor as legal counsel JSCO ENTERPRISES: BDO Awarded $1,920,000 Damages Under DPTA ----------------------------------------------------------- Judge Kathaleen McCormick of the Delaware Superior Court awarded BDO USA, P.C. $1,920,000 plus post-judgment interest at the statutory rate for JSCo Enterprises Inc.'s spoliation and bad faith litigation conduct in the case captioned as BDO USA, P.C. (f/fk/a BDO USA, LLP), Plaintiff, v. JSCO ENTERPRISES, INC. (f/k/a) EVERGLADE GLOBAL, INC.), Defendant, CA. No. N22C-12-063. BDO is a national public accounting, tax, and advisory firm with offices in over 60 locations throughout the United States. Non-party Eric Jia-Sobota is a former BDO partner who started a rival consulting firm, Defendant EverGlade, in the spring of 2020 while still at BDO. Jia-Sobota was EverGlade's founder, controlling stockholder, CEO, and Board chair. After Jia-Sobota's departure from BDO, in May 2020, Plaintiff initiated arbitration, claiming that Jia-Sobota breached the BDO partnership agreement. Plaintiff also filed an action for injunctive relief in aid of arbitration in the Superior Court of the District of Columbia." The arbitration and D.C. litigation placed significant financial pressure on EverGlade. Jia-Sobota attempted to resolve those matters through negotiations with a BDO partner. After settlement negotiations failed, BDO became the target of a social media smear campaign attacking the company and its senior leadership. Upon discovering the campaign, BDO took steps to mitigate the damage by reaching out to affected clients directly, circulating and amplifying blog posts and press releases about firm values, and taking steps to remove the fake news from social media. Chancery Action BDO also filed suit in the Delaware Court of Chancery on March 22, 2021. It sought injunctive relief and damages in connection with the smear campaign. On March 29, it amended its complaint to add claims for deceptive trade practices and trade libel. In January 2022, Plaintiff moved for default judgment on the basis that Defendant had engaged in pervasive spoliation. Defendant moved to dismiss the Chancery action for lack of subject matter jurisdiction. Superior Court Action On Dec. 5, 2022, Plaintiff sued Defendant in the Superior Court, filing a complaint substantively identical to the amended complaint in the Chancery action. In the Amended Complaint, Plaintiff alleges defamation per se, tortious interference with business relations, civil conspiracy, violation of the Delaware Deceptive Trade Practices Act ("DTPA"), and trade libel. The Amended Complaint seeks monetary and injunctive relief, including treble damages under the DTPA, attorneys' fees, interest, and costs on all causes of action, and "such other relief that this Court deems just and proper. On Jan. 31, 2023, the court issued a decision finding that Defendant had participated in egregious acts of spoliation. As a remedy, the court entered default judgment in Plaintiffs favor and granted Plaintiff attorneys' fees and expenses in an amount to be determined. Plaintiff seeks two forms of relief. It requests an injunction compelling EverGlade to remove any and all defamatory and violative statements from any website EverGlade maintains. In any event, this court lacks the power to issue injunctive relief. That request is therefore denied for lack of subject matter jurisdiction. Plaintiff also requests money damages and argues for one of three alternatives: (i) actual damages to reputational harm in the amount of $31 million to $35 million, trebled under the DTPA, plus attorneys' fees; (ii) presumed damages to reputational harm in the amount of $5 million, trebled under the DTPA, plus attorneys' fees; or (iii) mitigation damages in the amount of $640,000 plus attorneys' fees, trebled under the DTPA. The Court finds in this case, Plaintiff has failed to establish, through third-party fact witnesses, witnesses not affiliated with Plaintiff, documentary evidence, or otherwise that the smear campaign contributed to any reputational harm. According to the Court, the lack of any apparent harm to BDO's reputation is a good thing for the firm. But it is bad for BDO's damages case, because it forecloses its claim for $31 million to $35 million in actual damages. Plaintiff introduced expert testimony from Maureen Chakraborty, Ph.D., a Managing Principal at Analysis Group, Inc., to quantify damages to BDO's reputation. Defendant argues that Chakraborty's pre-harm valuation of BDO is flawed because it is based on revenue multiples drawn from public companies and precedent transactions that are not comparable. According to Judge McCormick, "Chakraborty's analysis relies on a series of dependent assumptions about the likeness of BDO to large public companies and the likeness of the smear campaign to other reputational harm events. Defendant raises legitimate questions about how similar these proxies are to what they attempt to approximate. And Plaintiff cites no other instance where a similar combination of methods has been used to show or calculate reputational harm due to defamation." "To be sure, Chakraborty's analysis is creative and ambitious. And she undertook an exceptionally difficult task: calculating the economic value of the reputational harm done to a private company due to a social media smear campaign. The result is academically interesting. But it not convincing in the end. And it is also irrelevant given the lack of any factual basis for concluding that BDO suffered any actual harm to its reputation, in the amount of $31 to $35 million or otherwise." Plaintiff argues that if the court finds that it is not entitled to damages in the amount calculated by Chakraborty, then it should award Plaintiff $5 million on "presumed damages" on its defamation per se claim. The Court finds the faults in Plaintiff's "claim to $31 million through $35 million" similarly infect its claim to presumed damages. Even on a successful claim of defamation per se, this court still requires Plaintiff to establish actual harm to its reputation to award damages. Plaintiff has failed to prove actual harm to its reputation. Accordingly, the Court denies Plaintiff's request for $5 million in presumed damages on its defamation per se claim. Where a plaintiff claiming defamation per se fails to provide "proof of general damages, nominal damages may be awarded," the court declines to award nominal damages in this case because Plaintiff has established that it is entitled to special damages in the form of repayment of the expenses it occurred in addressing and remediating the effects of the smear campaign. Plaintiff further argues that it is entitled to the expenses it incurred to mitigate the harm cause by EverGlade's tortious social media campaign. According to Plaintiff, those expenses comprise: BDO's direct out-of-pocket costs to mitigate the impact of the campaign in the amount of $640,000, and BDO's attorneys fees and costs incurred to enjoin the campaign and prevent the campaign from happening again. Defendant asserts that Plaintiff has not proven the amount of its direct costs, $640,000. The court finds Plaintiff is not entitled to attorneys' fees as a form of mitigation damages. Plaintiff, however is entitled to treble damages. Under Section 2533(c) of the DTPA, if damages are awarded to the aggrieved party, such damages awarded shall be treble the amount of the actual damages proved. The court entered a default judgment on Plaintiffs DTPA claim. And Plaintiff has proven entitlement to $640,000 in damages. Plaintiff is thus entitled to treble the amount of $640,000. Plaintiff argues EverGlade's default judgment concedes the allegations about EverGlade's exceptional and willful conduct entitling BDO to attorneys' fees. But this court has already exercised its discretion to award fees based on Defendant's litigation conduct. That is sufficient, in the court's view. A copy of the Court's Memorandum Opinion dated August 14, 2025, is available at https://urlcurt.com/u?l=IEvZfn Counsel for Plaintiff BDO USA, P.C.: Ashley R. Altschuler, Esq. Ethan H. Townsend, Esq. Kevin M. Regan, Esq. MCDERMOTT WILL & EMERY LLP The Brandywine Building 1000 N West Street, Suite 1400 Wilmington, DE 19801 E-mail: aaltschuler@mwe.com ehtownsend@mwe.com - and - Michael J. Sheehan, Esq. MCDERMOTT WILL & EMERY LLP 444 West Lake Street Chicago, IL 60606-0029 E-mail: msheehan@mwe.com - and - Russell Hayman, Esq. MCDERMOTT WILL & EMERY LLP 2049 Century Park East, Suite 3200 Los Angeles, CA 90067-3206 E-mail: rhayman@mwe.com - and - Alexander Kritikos, Esq. MCDERMOTT WILL & EMERY LLP Texas Tower 845 Texas Avenue, Suite 4000 Houston, TX 77002-1656 - and - Natasha L. Dobrott, Esq. MCDERMOTT WILL & EMERY LLP, 200 Clarendon Street, Floor 58 Boston, MA 02116-5021 Counsel for Defendant JSCo Enterprises, Inc.: James G. McMillan, III, Esq. Theodore A. Kittila, Esq. HALLORAN FARKAS + KITTILA LLP 5722 Kennett Pike Wilmington, DE 19807 E-mail: jm@hfk.law tk@hfk.law About JSCO Enterprises JSCo Enterprises, Inc. filed its voluntary Chapter 11 petition (Bankr. E.D. Tex. Case No. 23-42151) on Nov. 9, 2023, with $1 million to $10 million in both assets and liabilities. Eric Jia-Sobota, president, signed the petition. Judge Brenda T. Rhoades oversees the case. The Debtor tapped Howard Marc Spector, Esq., at Spector & Cox, PLLC as bankruptcy counsel and the Law Offices of L.W. Cooper Jr. and Halloran Farkas + Kittila LLP as special counsel. K&D'S SANTA CRUZ: Christopher Hayes Named Subchapter V Trustee -------------------------------------------------------------- The U.S. Trustee for Region 17 appointed Christopher Hayes as Subchapter V trustee for K&D's Santa Cruz Tire and Auto, Inc. Mr. Hayes will be paid an hourly fee of $470 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Hayes declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Christopher Hayes 23 Railroad Avenue, #1238 Danville, CA 94526 Phone: (925) 725-4323 Email: chayestrustee@gmail.com About K&D's Santa Cruz Tire and Auto K&D's Santa Cruz Tire and Auto, Inc., doing business as Santa Cruz Tire and Auto Care, provides automotive repair and maintenance services including brakes, engine and suspension repair, wheel alignments, smog checks, and air conditioning service. The company also sells and installs tires from brands such as Pirelli and Firestone and offers related services such as towing, financing, and a vehicle shuttle program. It operates from its location in Santa Cruz, California, serving customers in the surrounding area. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 25-51258) on August 15, 2025, with $1,754,537 in assets and $2,350,343 in liabilities. Karl Ryan, CEO, signed the petition. Judge M. Elaine Hammond presides over the case. Lars Fuller, Esq., at The Fuller Law Firm, PC represents the Debtor as bankruptcy counsel. KITCHEN MAN: Gets Interim OK to Use Cash Collateral --------------------------------------------------- The Kitchen Man Inc. received interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina, Wilmington Division, to use cash collateral. The interim order authorized the Debtor to use cash collateral for its post-petition operating expenses as set forth in its budget, which projects total operational expenses of $302,050 for the period from August 18 to September 17. As adequate protection, secured creditors including NFS Capital, LLC, Pearl Delta Funding, LLC, and Corporation Service Company which hold UCC-1 liens) will receive replacement post-petition liens on the Debtor's property, receivables, and assets. The immediate use of cash collateral is necessary to avoid irreparable harm and ensure continued operations, which generate the largest source of funds for creditors, according to the Debtor. The next hearing is set for September 17. Due to financial hardships resulting from the COVID-19 pandemic, increased material and labor costs, and the burden of high-interest merchant cash advances, the Debtor defaulted on several secured obligations and filed for Chapter 11 bankruptcy protection. The Debtor states that continued business operations are essential, as they represent the sole source of revenue for the Debtor and the best opportunity for creditor repayment. Without immediate access to cash collateral, the business will be unable to pay critical expenses such as payroll, materials, rent, insurance, utilities, and professional fees, resulting in irreparable harm to the bankruptcy estate. The Debtor identifies several parties with potential claims to its cash collateral based on UCC-1 financing statements, including NFS Capital, Pearl Delta Funding, and Corporation Service Company. While acknowledging the existence of these liens, the Debtor does not admit to their validity or priority and reserves the right to challenge them later. About The Kitchen Man Inc. The Kitchen Man Inc. specializes in custom countertop installations. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-03176) on August 18, 2025. In the petition signed by Chris Dabideen, president, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Joseph N. Callaway oversees the case. Richard P. Cook, Esq., at Richard P. Cook. PLLC, represents the Debtor as legal counsel. KITCHEN MAN: Kathleen O'Malley Named Subchapter V Trustee --------------------------------------------------------- Brian Behr, the U.S. Bankruptcy Administrator for the Eastern District of North Carolina, appointed Kathleen O'Malley as Subchapter V trustee for The Kitchen Man, Inc. Ms. O'Malley will be paid an hourly fee of $375 for her services. Ms. O'Malley disclosed in a court filing that she does not have an interest materially adverse to Sai Baba's estate, creditors and equity security holders. About The Kitchen Man The Kitchen Man, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. N.C. Case No. 25-03176) on August 18, 2025, with $500,001 to $1 million in assets and $1,000,001 to $10 million in liabilities. Judge Joseph N. Callaway presides over the case. Richard Preston Cook, Esq., at Richard P. Cook, PLLC represents the Debtor as legal counsel. KOSMOS ENERGY: Fitch Lowers LongTerm IDR to 'B-', On Watch Negative ------------------------------------------------------------------- Fitch Ratings has downgraded Kosmos Energy Ltd.'s Long-Term Issuer Default Rating (IDR) and senior unsecured ratings to 'B-' from 'B+' and placed the ratings on Rating Watch Negative (RWN). The Recovery Rating is 'RR4'. The downgrade reflects material operational and financial underperformance in 1H25 on nearly doubling of costs during the start-up of new Greater Tortue Ahmeyim LNG project and planned maintenance in Ghana, as well as heightened refinancing risk for 2026 and 2027 bonds. The RWN reflects high risks related to the refinancing of the April 2026 USD250 million bonds, and compliance with covenants under its USD1.35 billion reserve based lending (RBL) facility. Fitch will resolves the RWN once Kosmos: refinances the April 2026 maturities; meets the liquidity test for 2027 bond maturity; complies with the March 2026 debt cover ratio covenant; passes the September 2025 RBL redetermination with no material reduction in its size; and has a viable plan for refinancing the 2027 bonds. Key Rating Drivers Refinancing of April 2026 Maturities: Kosmos expects to refinance the remaining USD250 million of its 7.125% senior notes maturing in April 2026 with a new senior secured term loan facility of up to USD250 million from an international oil and gas company, secured against Gulf of America (GoA) assets and maturing four years after closing. The loan agreement has not yet been signed. Debt Cover Ratio Met For September Test: The RBL agreement requires Kosmos to maintain a net debt/EBITDAX below 3.5x, tested in March (based on full-year data) and September (last 12 months to June). Kosmos has amended its debt covenants, due to expected lower EBITDAX generation in 2025, by raising the threshold to 4.0x for the September 2025 test and 4.25x for the March 2026 test. The ratio was 3.8x, for 12 months to June 2025, in line with the revised 4.0x threshold. March 2026 Test Uncertain: Improved financial performance in 2H25 is required for Kosmos to meet the debt cover covenant testing under the RBL agreement in March 2026. Failure to meet the debt cover ratio or secure a waiver would severely affect Kosmos' liquidity and lead to a negative rating action. However, Fitch does not expect a breach to result in RBL lenders accelerating loan repayment, and Fitch would expect the covenant to be renegotiated. Liquidity Test Before Bond Maturity: The RBL agreement also stipulates a liquidity test to be conducted 18 months before each bond matures. Kosmos successfully passed this test for the April 2026 bond in autumn 2024. The test for the May 2027 bond is scheduled for 3Q25. The company has USD350 million undrawn under its RBL, which is subject to September redetermination. This along with 2026 bond maturities makes it more challenging to meet the upcoming liquidity test. However, the company expects to conclude the GoA facility in 3Q25, which would add up to USD250 million additional liquidity for this test. The test introduces additional uncertainty. If Kosmos fails to pass it, the RBL maturity would be brought forward to November 2026, which is six months before the May 2027 bond matures. This could have significant implication for Kosmos' ability to raise external funding and a negative impact on the rating. Weaker 1H25 Results: Kosmos reported a 56% year-on-year drop in EBITDAX for 1H25, driven by higher costs, mainly from Greater Tortue Ahmeyim (GTA), lower production and weaker realised oil prices. Net production fell year on year to 61 kboe/d in 1H25 from 64 kboe/d, due primarily to lower output at Jubilee field due to a planned shutdown of the FPSO. Costs rose sharply with the ramp-up at GTA. Fitch expects total production in 2025 to average 69 kboe/d, compared with its previous assumption of 76 kboe/d, supported by increased output from GTA and Jubilee in 2H25. GTA Operational: The GTA floating LNG (FLNG) vessel started commercial operations in June, with production matching its annual contracted volume of 2.45 mtpa. Net production averaged 7 kboe/d in 2Q25, with 3.5 gross LNG cargos lifted during the quarter and 2.5 more after quarter-end. However, Kosmos' oil and gas production costs rose 68% year on year or USD166 million in 1H25, with USD127 million due to GTA ramp-up costs. GTA Costs to Decrease: Fitch expects GTA costs to fall on normalising bonus payment to Golar LNG for the FLNG vessel toll and a planned refinancing of the USD15 million quarterly FPSO lease in 2H25. The latter represents about a quarter of GTA operating expenses. Fitch expects operating costs to remain steady between 2Q25 and 3Q25, with rationalised start-up costs to decline in 4Q25 as volumes increase. Kosmos estimates GTA's free cash flow (FCF) breakeven is USD50-55/bbl at Phase 1 full capacity. Higher Leverage: Fitch assumes that part of the cost increase in 1H25 is structural despite the expected cost improvements. Fitch has therefore revised down its EBITDA forecasts to USD605 million in 2025 (from USD949 million in the previous forecast) and to USD737 million in 2026 (from USD1,059 million before). Fitch forecasts EBITDA net leverage of 4.3x in 2025, above its previous negative sensitivity of 2.5x, and 3.4x in 2026 depending on GTA's runrate profitability, compared with its previous forecast of 2.6x and 2.1x, respectively. Reducing Capital Intensity: Kosmos' capital intensity should fall from 2025, once its growth projects become operational. The company guides USD350 million in 2025 and Fitch expects slightly higher outlays in 2026-2027, compared with around USD700 million in 2024. However, it is not sufficient to counter weaker profitability under its revised forecasts, which results in overall higher leverage expectations. No Dividends Assumed: Kosmos aims to prioritise internal funding of capex and debt reduction towards its long-term target of company-defined net debt at below 1.5x EBITDAX, over shareholder distributions. Fitch does not expect Kosmos to resume shareholder distributions for 2025-2027. Peer Analysis Energean Plc (BB-/Stable) is rated higher than Kosmos due to its stronger liquidity and credit metrics, significantly higher projected production (peaking at 150,000-160,000boe/d in 2025 following divestments) and reserves, and a large share of contracted sales under long-term take-or-pay agreements that provide more visibility to its cash flows. Seplat Energy Plc's (B/Stable) production should significantly increase following its acquisition of Mobil Producing Nigeria Unlimited and will exceed that of Kosmos. However, Seplat's rating is constrained by Nigeria's 'B' Country Ceiling due to concentration of its assets and export revenues in the country. Key Assumptions Its Rating Assumptions within the Rating Case for the Issuer: - Brent crude oil prices of USD70/bbl in 2025 and USD65/bbl in 2026-2027 - Henry hub prices of USD3.6/thousand cubic feet (mcf) in 2025, USD3.5/mcf in 2026 and USD3/mcf in 2027 - Production marginally increasing to around 69,000boe/d in 2025 (compared with 2024) and to around 80,000boe/d in 2026-2027 - Capex at USD350 million-375 million in 2025-2027 - No common dividends, in line with Kosmos' long-term leverage target Recovery Analysis Its recovery analysis is based on a going-concern (GC) approach, which implies that Kosmos will be reorganised rather than liquidated in a bankruptcy. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganisation EBITDA level on which Fitch bases the enterprise valuation. Kosmos' GC EBITDA of USD620 million, which includes the company's full consolidation scope, reflects its view on EBITDA generation without any hedging and assumption of a fall in oil and natural gas prices, followed by a moderate recovery. Fitch used a distressed enterprise valuation multiple of 4.0x, which reflects Kosmos' moderate size with some growth prospects, and the company's exposure to country risk. Kosmos' senior unsecured notes are subordinated to its USD1.35 billion RBL. After deducting 10% for administrative claims, its analysis generated a waterfall-generated recovery computation for Kosmos' senior unsecured notes in the 'RR4' band, indicating a 'B-' instrument rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to refinance USD250 million bond maturing in April 2026 - Failure to pass liquidity test with respect to May 2027 bond maturity - Failure to meet the debt cover ratio in September 2025 and March 2026 testing - Material reduction in RBL availability following September 2025 redetermination - Lack of a viable plan for 2027 bonds refinancing - EBITDA net leverage over 4.0x on a sustained basis - Production falling below 60,000boe/d - Aggressive shareholder distributions Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The ratings are on RWN and therefore a positive rating action is unlikely at least in the short term. The RWN could be removed and rating affirmed once Kosmos 1) refinances the April 2026 maturities, 2) meets the liquidity test for 2027 bond maturity, 3) complies with the March 2026 debt cover ratio covenant, 4) passes September 2025 RBL redetermination with no material reduction in its size and 5) has a viable plan for 2027 bonds refinancing. - EBITDA net leverage below 3.0x on a sustained basis and an improved liquidity profile could be positive for the rating. - EBITDA from outside Ghana sufficient to cover gross interest expense. Liquidity and Debt Structure Kosmos' cash balance totalled USD52 million at end-June 2025, while available undrawn balance under the RBL totalled USD350 million. Upcoming debt maturities are its USD250 million bond maturing in April 2026 and USD350 million in May 2027. Issuer Profile Kosmos is a medium-sized, full-cycle deep-water independent oil and gas exploration and production company. 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 ----------- ------ -------- ----- Kosmos Energy Ltd. LT IDR B- Downgrade B+ senior unsecured LT B- Downgrade RR4 B+ L & D CAFE: Case Summary & 19 Unsecured Creditors ------------------------------------------------- Debtor: L & D Cafe, Inc. d/b/a Marian's Bagels 248 S. University Drive Plantation, FL 33324 Business Description: L & D Cafe, Inc., doing business as Marian's Bagels, operates a cafe and bakery in Plantation, Florida, specializing in bagels, sandwiches, and related food and beverage items. The Company serves local customers in the South Florida area, providing dine-in and takeout options. Chapter 11 Petition Date: August 22, 2025 Court: United States Bankruptcy Court Southern District of Florida Case No.: 25-19748 Judge: Hon. Peter D. Russin Debtor's Counsel: Chad P. Pugatch, Esq. LORIUM LAW 101 NE 3rd Ave Suite 1800 Fort Lauderdale, FL 33301 Tel: 954-462-8000 Email: cpugatch@loriumlaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Constantine N. Manos as president. A full-text copy of the petition, which includes a list of the Debtor's 19 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/MD45YCQ/L__D_Cafe_Inc__flsbke-25-19748__0001.0.pdf?mcid=tGE4TAMA L.D. LYTLE: To Sell Red Oak Property to 4452 Broad for $1.5MM ------------------------------------------------------------- L.D. Lytle, Inc., seeks permission from the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, to sell Property, free and clear of liens, claims, interests, and encumbrances. The Debtor seeks to sell its real property and improvements commonly known as a Sunshine Kids Academy located at 551 Bluebird Lane, Red Oak, Texas 75154. The Debtor has received a Commercial Contract – Improved Property for the purchase price of $1,500,000.00 from 4452 Broad, a Delaware Limited Liability Co. and/or its assigns (Buyer). The Debtor has marketed the Property for sale through a commercial real estate broker. Buyer's commercial real estate agent will receive a commission of three percent of the gross sales price if the sale closes. At closing the sale will pay the secured claim of Three Horizons estimated at $975,000, the secured claims of ad valorem taxing authorities with liens on the property, the secured claim of the tax lien lender who financed the Debtor’s real property taxes and the reasonable and necessary closing costs of the title company in connection with the sale. The Debtor has marketed the Property and asserts the proposed Purchase Price is fair and reasonable. Delay may result in loss of the Buyer, or further reduction in value received. Delay will result in additional ongoing expenses to the Debtor and its estate. The Debtor will show at the hearing hereon that it negotiated with all potential purchasers at arm's-length, in good faith, and in an effort to achieve the best offer for its Property. About L.D. Lytle, Inc. L.D. Lytle Inc., doing business as Sunshine Kids Academy, operates early childhood education and daycare centers in Texas. It provides childcare services at locations in Ennis, Ferris, and Red Oak. L.D. Lytle sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-32454) on June 30, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Judge Michelle V. Larson handles the case. The Debtor is represented by Joyce Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC. LAFLEUR NURSERIES: Gets OK to Use Cash Collateral Until Sept. 3 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, issued a second preliminary order authorizing Lafleur Nurseries and Garden Center, LLC's interim use of cash collateral through September 3. The interim order signed by Judge Lori Vaughan authorized the Debtor to use cash collateral to pay the amounts expressly authorized by the court, including payments to the U.S. trustee for quarterly fees; 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 BankUnited, N.A., a senior creditor. The Debtor projects total operational expenses of $483,300 for the period from August to October. As adequate protection, BankUnited and other creditors with a lien or security interest in the cash collateral will be granted a perfected post-petition replacement lien on the cash collateral to the same extent and with the same priority and validity as their pre-bankruptcy liens. In addition, the Debtor was ordered to keep its property insured in accordance with its loan agreements with secured creditors. The next hearing is scheduled for September 3. About Lafleur Nurseries and Garden Center LLC Lafleur Nurseries and Garden Center, LLC operates a retail garden center in Sanford, Florida. It offers a wide selection of plants, trees, and landscaping materials, and provides related services such as landscape design, installation, and irrigation system support. Lafleur sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-03734) on June 17, 2025. In its petition, the Debtor reported total assets of $568,637 and total liabilities of $3,283,410. Judge Lori V. Vaughan handles the case. The Debtor is represented by Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC. LARCO POOLS: Amy Denton Mayer Named Subchapter V Trustee -------------------------------------------------------- The U.S. Trustee for Region 21 appointed Amy Denton Mayer of Stichter Riedel Blain & Postler, P.A. as Subchapter V trustee for Larco Pools, LLC. Ms. Mayer 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. Mayer declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Amy Denton Mayer Stichter Riedel Blain & Postler P.A. 110 East Madison Street, Suite 200 Tampa, FL 33602 Phone: (813)229-0144 Email: amayer@subvtrustee.com About Larco Pools Larco Pools, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-05760) on August 14, 2025, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Buddy D. Ford, Esq., at Ford & Semach, P.A. represents the Debtor as legal counsel. LARCO POOLS: Seeks Subchapter V Bankruptcy in Florida ----------------------------------------------------- On August 14, 2025, Larco Pools LLC filed Chapter 11 protection in the Middle District of Florida. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. The company has chosen to proceed under Subchapter V of Chapter 11, a process intended to simplify reorganization for small businesses. Larco Pools reports significant unsecured claims including $115,000 owed to Seaton Rescreen and Repairs, $106,995 to Mainstreet Merchant Services, and $95,024 to Horner Express. About Larco Pools Larco Pools is a swimming pool contractor based in Dunedin, Florida. The company specializes in swimming pool construction, installation, maintenance, and repair services, operating primarily in Pinellas County. Larco Pools sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-05760) on August 14, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $500,000 and $1 million. The Debtor is represented by Buddy D. Ford, Esq. at Ford & Semach, P.A. LCC INC: Gets Interim OK to Use Cash Collateral Until Sept. 15 -------------------------------------------------------------- LCC, Inc. received interim approval from the U.S. Bankruptcy Court for the District of Colorado to use cash collateral. The interim order authorized the Debtor to use cash collateral through September 15 pursuant to the budget it filed on August 19. The Debtor must only expend cash collateral pursuant to the budget, subject to fluctuation by no more than 15% for each expense line item per month, plus any fees owed to the U.S. Trustee. As adequate protection, any creditor that has a properly perfected security interest in the cash collateral will be granted a replacement lien on all post-petition accounts receivable of the Debtor. In addition, the Debtor will keep its personal property insured against any potential loss as further protection to secured creditors. The next hearing is set for September 10. Due to a slowdown in business and burdensome merchant cash advance debt, the Debtor's financial situation has deteriorated, with secured debt exceeding the value of its assets and a significant strain on cash flow. The Debtor has identified multiple parties such as City Wide Banks, Newtek Bank, Cambridge Advance LLC, and others as having or potentially asserting liens on its assets, including cash collateral. As of the petition date, the Debtor held approximately $6,388 in cash and $121,712 in accounts receivable, with projected revenues of $300,000 per month. The Debtor intends to continue operations and generate income during the Chapter 11 process, using a detailed monthly budget of roughly $149,726 for essential operating expenses including payroll, rent, utilities, vendor payments, insurance, and vehicle maintenance. About LCC Inc. LCC Inc. specializes in selling and servicing commercial, off-road, light truck, and passenger tires. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 25-15137) on October 15, 2025. In the petition signed by Luis Carlos Chavez, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Michael E. Romero oversees the case. Aaron A. Garber, Esq., at Wadsworth Garber Warner Conrardy, P.C., represents the Debtor as legal counsel. LYLES CAPITAL: Court Terminates Cash Collateral Access ------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Arkansas, Northern Division, granted U.S. Bank, N.A.'s motion to terminate Lyles Capital Management, LLC's use of cash collateral. U.S. Bank serves as Trustee for the Registered Holders of Wells Fargo Commercial Mortgage Securities, Inc., Multifamily Mortgage Pass-Through Certificates, Series 2019-SB68. In its motion, the lender asserted that the Debtor failed to comply with the conditions set forth in the court's second interim order entered on July 21. This order permitted the use of cash collateral under strict requirements, including (1) obtaining and providing proof of adequate insurance coverage by July 31, (2) delivering specific financial documents and rent schedules by August 11, and (3) submitting both a final cash collateral budget and a proposed form of a final cash collateral order by the same date. According to U.S. Bank, the Debtor failed to provide any of the required documentation. Following the default, the bank's counsel sent written notices to the Debtor's attorney, Joel Hargis, on August 9 and 12, thereby triggering a 72-hour cure period as allowed by the second interim order. Since that deadline has passed and no corrective action was taken, U.S. Bank asserted that it is entitled to immediate termination of the Debtor's authority to use cash collateral. About Lyles Capital Management Lyles Capital Management, LLC is a real estate company based in Jonesboro, Arkansas. It owns and manages multi-unit residential properties, including several addresses on Melrose and State Streets in Jonesboro. Lyles Capital Management sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No. 25-11634) on May 14, 2025. In its petition, the Debtor reported total assets of $2,075,773 and total liabilities of $1,448,142. Judge Phyllis M. Jones handles the case. The Debtor is represented by Joel G. Hargis, Esq., at Caddell Reynolds Law Firm. U.S. Bank National Association, as Trustee for the Registered Holders of Wells Fargo Commercial Mortgage Securities, Inc., Multifamily Mortgage Pass-Through Certificates, Series 2019-SB68, is represented by: Jacob P. Fair, Esq. Wright, Lindsey & Jennings, LLP 200 West Capitol Avenue, Suite 2300 Little Rock, Arkansas 72201-3699 Tel: (501) 371-0808 Fax: (501) 376-9442 jfair@wlj.com M & N STRUCTURES: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------------ The U.S. Trustee for Region 12 appointed an official committee to represent unsecured creditors in the Chapter 11 case of M & N Structures, Inc. The committee members are: 1. Mary Anne Davenport Director of Credit & Collections Canam Steel Corp. 4010 Clay Street Point F Rocks, MD 21777 (301) 964-6201 Maryanne.davenport@cscsteelusa.com 2. Marcile Staub Azz Galvanizing – Winsted 800 6th Street South Winsted, MN 55395 (918) 524-1503 marcilestaub@azz.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About M & N Structures Inc. M & N Structures, Inc. provides structural steel fabrication and design-build services across Minnesota and surrounding states. It specializes in in-house 3D modeling, BIM detailing, CNC-equipped fabrication, and steel erection. M & N serves commercial, industrial, and energy-sector projects from its facility in Winsted, Minnesota. M & N sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Minn. Case No. 25-42489) on July 30, 2025, listing $3,092,696 in total assets and $5,246,089 in total liabilities. Jonathan Henriksen, president of M & N, signed the petition. Cameron Lallier, Esq., at Bassford Remele, A Professional Association is the Debtor's legal counsel. BMO Bank, N.A., as lender, is represented by: James M. Jorissen, Esq. Taft Stettinius & Hollister, LLP 2200 IDS Center 80 South Eighth Street Minneapolis, MN 55402 Telephone: 612-977-8400 Facsimile: 612-977-8650 jjorissen@taftlaw.com MASS POWER: Court Extends Cash Collateral Access to Aug. 28 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Massachusetts issued a proceeding memorandum and order extending Mass Power Solutions, LLC's authority to use cash collateral. The Debtor was authorized to use cash collateral on an interim basis through August 28 under the same terms and conditions previously established. The next hearing is scheduled for August 28. About Mass Power Solutions LLC Mass Power Solutions, LLC is an electrical contracting company specializing in renewable energy solutions, including solar project design, installation, and management, serving both residential and commercial clients. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-40234) on March 5, 2025. In the petition signed by Ryan Lane, manager, the Debtor disclosed up to $50,000 in assets and up to $10 million in liabilities. Judge Elizabeth D. Katz oversees the case. John O. Desmond, Esq., represents the Debtor as legal counsel. MISSION SELF-STORAGE: Jerrett McConnell Named Subchapter V Trustee ------------------------------------------------------------------ The U.S. Trustee for Region 21 appointed Jerrett McConnell, Esq., at McConnell Law Group, P.A. as Subchapter V trustee for Mission Self-Storage Leesburg, LLC. Mr. McConnell will be paid an hourly fee of $350 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. McConnell declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Jerrett M. McConnell, Esq. McConnell Law Group, P.A. 6100 Greenland Rd., Unit 603 Jacksonville, FL 32258 Phone: (904) 570-9180 Email: info@mcconnelllawgroup.com About Mission Self-Storage Leesburg Mission Self-Storage Leesburg, LLC operates self-storage facilities in Florida, offering a range of storage units including climate-controlled spaces and parking for vehicles such as RVs and boats. The Company provides 24/7 access through an electronic gate system and maintains security with video surveillance. Rentals are managed online or by phone, facilitating a contactless move-in experience. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 25-40380) on August 15, 2025, with $1 million to $10 million in assets and liabilities. Stacy Rossetti, authorized member, signed the petition. Byron W. Wright III, Esq., at Bruner Wright, P.A. represents the Debtor as legal counsel. MODIVCARE INC: Faces Nasdaq Delisting Following Chapter 11 ---------------------------------------------------------- Modivcare Inc. (Nasdaq: MODV), a technology-enabled healthcare services company that provides a platform of integrated supportive care solutions focused on improving health outcomes, announced that, on August 21, 2025, the Company was notified by the Listing Qualifications Department of The Nasdaq Stock Market LLC that Nasdaq had determined to commence proceedings to delist the Company's common stock as a result of the Company's commencement of voluntary proceedings under Chapter 11 of the United States Bankruptcy Code on August 20, 2025. Information regarding the Company's plans to implement, through expedited bankruptcy proceedings, a comprehensive restructuring transaction to strengthen its future, reduce debt and inject capital was announced in an August 20, 2025 press release. The restructuring transaction has the support of a supermajority of the Company's key stakeholders. For more information about the Company's Chapter 11 case, including claims information, please visit veritaglobal.net/Modivcare or contact Verita, the Company's noticing and claims agent, at (888) 733-1521 for U.S. and Canada or (310) 751-2636 for international. All of Modivcare's service lines are expected to continue to operate in the ordinary course during this process, and it expects no interruption or change in access to care and a continued focus on operational excellence. Interested parties are encouraged to read the information contained in the August 20, 2025 press release, as well as the related Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on August 21, 2025, because they contain important information not included herein. In addition, on August 20, 2025, the Company received a notice from Nasdaq indicating that, as a result of the delinquency in the timely filing of the Company's quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2025, the Company is out of compliance with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to timely file all required periodic reports with the SEC. Nasdaq informed the Company that trading in the Company's common stock would be suspended at the opening of business on August 28, 2025. The Company does not intend to appeal Nasdaq's decision to delist the common stock and it is expected that Nasdaq will file a Form 25-NSE with the SEC, which would remove the Company's common stock from listing and registration on Nasdaq. The Company anticipates that, upon the delisting from Nasdaq, the common stock will be quoted on the OTC Pink Market. The Company, however, can provide no assurance that the common stock will commence or continue to trade on this market. About ModivCare Inc. ModivCare Inc. is a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions for public and private payors and their members. At December 31, 2024, ModivCare had 1,654,332,000 in total assets, 1,692,806,000 in total liabilities, and 38,474,000 in total stockholders' deficit. * * * As reported by the Troubled Company Reporter in March 2025, S&P Global Ratings lowered its Company credit rating on ModivCare Inc. to 'CCC+' from 'B'. The outlook is negative. MODIVCARE INC: Files Ch. 11 to Cut $1.1B Debt, Secures $100M DIP ---------------------------------------------------------------- Modivcare Inc. (Nasdaq: MODV), a technology-enabled healthcare services company providing a platform of integrated supportive care solutions focused on improving health outcomes, announced on August 20, 2025, that it has taken necessary and decisive action intended to strengthen its financial foundation while continuing to provide access to care, reduce costs, and improve outcomes for clients and members nationwide. Modivcare has filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas to implement a comprehensive restructuring transaction with the support of a supermajority of its key stakeholders. Through this process, Modivcare intends to build a stronger, sustainable organization, positioned for growth and well-equipped to meet the critical needs of members across its non-emergency medical transportation, personal care services and remote patient monitoring service lines. "Modivcare sits at the center of the preventive healthcare ecosystem," said Heath Sampson, Chief Executive Officer and President of Modivcare. "This recapitalization strengthens our balance sheet and allows Modivcare to accelerate our investment in innovation by combining technology and data with high-touch member engagement. As the connector to care, our seamlessly connected platform improves access, quality and cost for payors, providers and facilities, while positioning us to lead the future of coordinated care." More than 90% of First Lien Lenders and more than 70% of Second Lien Lenders have entered into a Restructuring Support Agreement ("RSA") with the Company. Those lenders have committed to support the Company throughout this process and have agreed to provide $100 million in "debtor-in-possession" ("DIP") financing to finance the restructuring process and to support ongoing operations during this expedited bankruptcy process. Upon the closing of the DIP loan, Modivcare will have liquidity in excess of $100 million. The restructuring will reduce the Company's total outstanding funded debt obligations by approximately $1.1 billion (which is more than 85% of its outstanding funded debt obligations) and will meaningfully reduce the Company's annual cash interest and transition ownership to a group of seasoned and well-funded investors who are committed to Modivcare's success. All of Modivcare's service lines will continue to operate in the ordinary course, and we expect no interruption or change in access to care and a continued focus on operational excellence. Modivcare intends to close this transaction quickly by exiting the restructuring process early in the fourth quarter of 2025. Modivcare remains committed to providing excellent service to clients and their members. The Company has filed customary motions that, once approved, will allow Modivcare to meet obligations to clients and critical vendors, including transportation providers, and pay employee wages and benefits as usual. For more information about the Company's Chapter 11 case, including claims information, please visit veritaglobal.net/Modivcare or contact Verita, the Company's noticing and claims agent, at +1 (888) 733-1521 for U.S. and Canada or +1 (310) 751-2636 for international. Modivcare is advised by Latham & Watkins LLP, Hunton Andrews Kurth LLP, Moelis & Company LLC, and FTI Consulting. The First Lien Agent, the First Lien Lenders and the Second Lien Noteholders executing the RSA are advised by Paul Hastings LLP and Lazard. About ModivCare Inc. ModivCare Inc. is a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions for public and private payors and their members. At December 31, 2024, ModivCare had 1,654,332,000 in total assets, 1,692,806,000 in total liabilities, and 38,474,000 in total stockholders' deficit. * * * As reported by the Troubled Company Reporter in March 2025, S&P Global Ratings lowered its Company credit rating on ModivCare Inc. to 'CCC+' from 'B'. The outlook is negative. MOFUS DOMUS: Seeks Cash Collateral Access ----------------------------------------- Mofus Domus, LLC asked the U.S. Bankruptcy Court for the District of Oregon for authority to use cash collateral and provide adequate protection. The Debtor's bankruptcy case commenced on June 25, with the Debtor retaining control over its property and business operations under 11 U.S.C. sections 1107 and 1108. The Debtor is a limited liability company based in Tualatin, Oregon, and its sole asset is an office condominium located at 6464 SW Borland Road, Unit C3. On the petition date, the Debtor had $244 in its bank account, all of which is considered cash collateral derived from rental income. The Debtor had previously rejected a lease with Metatron Health, LLC and entered into a new lease agreement with Roberta Huang, M.D., under which the Debtor receives $7,500 per month in rent. The Debtor intends to use both existing and future cash collateral for necessary expenses. The total monthly use of cash collateral would be $5,244, with $2,244 allocated for these operating expenses and $3,000 to be paid to Meadberry Properties, LLC as adequate protection. Meadberry Properties, LLC is identified as the sole lien creditor with a claim against the Debtor's cash collateral, secured by a trust deed and an assignment of rents. The Debtor said that the use of cash collateral is critical to preserving the value of its business, ensuring compliance with lease obligations, and maintaining its sole income-generating asset. Without court approval for such use, the Debtor lacks the funds to cover essential expenses, which would endanger the viability of the business and its reorganization prospects. The proposed terms of the final order limit the Debtor's use of cash collateral to the categories and amounts listed in the budget. However, limited flexibility is requested: the Debtor may exceed budgeted amounts by up to 15% for line items under $2,000, and by up to 12.5% for other line items, so long as the overall budget is respected. To adequately protect Meadberry's interest in the cash collateral, the Debtor proposed the following terms: 1. Monthly adequate protection payment of $3,000. 2. Replacement lien on all property owned by the Debtor as of the petition date, excluding Chapter 5 avoidance actions. 3. The replacement lien will match the priority and scope of Meadberry's original lien and be automatically perfected upon entry of the order. About Mofus Domus LLC Mofus Domus, LLC is a single-asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). Mofus Domus sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Or. Case No. 25-32147) on June 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. Honorable Bankruptcy Judge Peter C. McKittrick handles the case. The Debtor is represented by Keith Y. Boyd, Esq., at Keith Y. Boyd, PC. MOSS CREEK: Fitch Affirms 'B' LongTerm IDR, Outlook Stable ---------------------------------------------------------- Fitch Ratings has affirmed Moss Creek Resources Holdings, Inc. and Moss Creek Resources, LLC (together MCRH) Long-Term Issuer Default Rating (IDR) at 'B'. Fitch has affirmed Moss Creek Resources, LLC's senior secured reserve-based lending facility (RBL) at 'BB' with a Recovery Rating of 'RR1' and Moss Creek Resources Holdings, Inc's senior unsecured note at 'B+'/'RR3'. The Rating Outlook is Stable. The ratings reflect MCRH's Permian Basin asset base with high liquids exposure, forecast neutral to positive FCF, long-dated debt profile with strong liquidity, which should result in midcycle gross leverage remaining below 1.5x. These factors are partially offset by the company's relatively small production size, adequate 12-month hedge coverage and low proved developed producing (PDP) reserves. Key Rating Drivers Smaller Producer: At YE 2024, Moss Creek had 257.7 million boe of proved reserves (67% PDP, 62% oil) and 1Q25 production of around 66.4 thousand barrels of oil equivalent per day (mboepd), including roughly 66% liquids. The company's size is consistent with the 'B' rating category by reserves and production. Moss Creek's production level is more important to its overall IDR, as smaller producers typically have less resilience during weaker points in the commodity cycle to maintain development plans and access to capital. Permian Asset Base: Fitch believes Moss Creek's northern assets in Borden County have some development and execution risk as the acreage is less derisked and well results could vary. Its asset base is about 157,400 largely contiguous net acres in Howard and Borden Counties of the Midland basin, with opportunity for 11,000+ foot laterals. The rest is in Dawson, Gaines and Crosby Counties. At March 31, 2025, Moss Creek operated about 97% of its net acreage and around 59% was held by production. Minimal legacy development on some of the acreage gives Moss Creek the ability to utilize industry learnings to optimize development patterning and completion across the delineated formations. The Midland basin is well developed, particularly the Lower Spraberry and Wolfcamp A, which bodes well for expected well results. Neutral to Positive FCF: Fitch believes Moss Creek will generate mostly positive FCF before dividends throughout the base case, which will improve liquidity further. Fitch forecasts the company to generate positive FCF before dividends of $120 million in 2025 at Fitch's $65 WTI price. Moss Creek is likely to maintain annual production around 60 mboepd over the forecast. Strong Liquidity: Fitch expects MCRH will maintain strong liquidity going forward, with full availability under the RBL (less $10.7 million of letters of credit) along with cash-on-hand of approximately $511 million at 1Q25 provides MCRH with liquidity of $1.4 billion. The bond maturity is not until 2031, providing the company with extensive runway. MCRH can scale back its rig count to preserve liquidity in a weakened oil price environment given the short-term nature of the company's rig contracts and does not plan to add back the third rig until 2026 or until improved oil prices are sustained. Expect Increased Dividend payments: Fitch expects Moss Creek to increase dividend payments to Xinchao Energy starting in 2026, following Inner Mongolia Yitai Coal Co., Ltd.'s acquisition of a 50.1% majority stake in May 2025. The April 2024 revision to the Shanghai Stock Exchange (SSE) Listing Rules may also support modest future dividends. The parent is incorporated under Chinese law, listed on the SSE and subject to the laws, rules and regulations of China. Adequate Near-Term Hedge Book: Fitch believes Moss Creek has adequate hedge coverage, which partially protects the company in a weakened commodity price environment in the near term. The company has hedged approximately 50% of its expected 2025 oil production at an average price of approximately $69.5 per bbl and approximately 10% of its expected 2026 oil production at an average of approximately $67/bbl. Moss Creek's credit agreement requires it to hedge 50% of its PDP oil for 12 months if net leverage is below 1.5x, with a step up in hedging required if net leverage is above 1.5x and again if above 2.0x. Sub-1.5x Leverage Profile: Fitch forecasts Moss Creek's leverage to be approximately 1.1x in 2025 at its $65 per barrel (bbl) West Texas Intermediate (WTI) price assumption and remain under 1.5x leverage under Fitch's WTI price assumptions. This is aligned with management's target to maintain a conservative leverage profile with ample RBL availability. Peer Analysis Moss Creek is a relatively small, growth-oriented operator with average daily production of about 66.4 mboepd in 1Q25. The company is larger than Howard County peer HighPeak Energy, Inc. (B/Stable; 53.1 mboepd in 1Q25), but smaller than non-operator Northern Oil & Gas, Inc. (BB-/Stable; 135.0 mboepd), Baytex Energy Corp. (BB-/Stable; 144.2 mboepd) and Permian peers Matador Resources Company (BB/Stable; 198.6 mboepd) and Permian Resources Corporation (BBB-/Stable; 373.2 mboepd). Moss Creek's 1Q25 Fitch-calculated unhedged cash netback of $35.5/boe is higher than that of Northern Oil & Gas, Permian Resources, Matador Baytex and HighPeak. Moss Creek's unhedged cash netbacks level is partially offset by higher-than-average operating costs of $14.7/boe, which is among the highest of the peer group. The company's leverage remains consistent with the Permian peer average in 1Q25, with Fitch forecast EBITDA leverage of less than 1.5x at Fitch's long-term price assumptions. Key Assumptions - WTI prices of $65/bbl in 2025, $60/bbl in 2026 and 2027, and $57/bbl thereafter; - Henry Hub natural gas prices of $3.60/mcf in 2025, $3.50/mcf in 2026, $3.00/mcf in 2027, and $2.75/mcf thereafter; - Average production of 62 mboepd in 2025 with production reverting down to 59 mboepd by 2029; - Capex of $500 million in 2025 reducing to $475 million in the outer years of the forecast; - No M&A over the forecast; - Dividends to the parent increases from 2026. Recovery Analysis The recovery analysis assumes that Moss Creek would be reorganized as a going concern in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim and 100% draw on the RBL facility ($900 million). Going-Concern (GC) Approach Fitch assumed a bankruptcy scenario exit EBITDA of $450 million. Moss Creek's GC EBITDA assumption reflects Fitch's projections under a stressed case price deck. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level on which it bases the enterprise valuation, which reflects the decline from current pricing to stressed levels, and a partial recovery in 2026-2027 after coming out of a troughed pricing environment. Fitch believes that a lower-for-longer price environment, combined with continued aggressive growth and consequent RBL-funded capital outspending and liquidity erosion, could pose a plausible bankruptcy scenario for Moss Creek. An enterprise valuation multiple of 3.25x EBITDA is applied to the GC EBITDA to calculate a post-reorganization enterprise value. The choice of this multiple considered the following factors: - The historical bankruptcy case study exit multiples for peer companies of 2.8x-7.0x, with an average of 5.2x and a median of 5.4x; - Although Permian Basin assets are considered valuable, there is a perceived increased risk because some of the acreage is less developed. Liquidation Approach The liquidation estimate reflects Fitch's view of the value of balance sheet assets that can be realized in sale or liquidation process conducted during a bankruptcy or insolvency proceeding and distributed to creditors. Fitch considers valuations such as SEC PV-10 and M&A transactions for each basin, including multiples for production per flowing barrel, proved reserves valuation, value per acre and value per drilling location. Fitch assumed the lower production per flowing barrel-based valuation estimate to be the most conservative. Waterfall Analysis The RBL facility is assumed to be fully drawn upon default, given the company's hedge position and Fitch's expectation that production growth would likely offset the risk of a price-linked borrowing base reduction. The RBL facility is senior to the unsecured notes in the waterfall. The allocation of value in the liability waterfall results in recovery corresponding to 'RR1' for the senior secured RBL facility of $900 million and 'RR3' for the $750 million senior unsecured note, which is consistent with Fitch's Corporates Recovery Ratings and Instrument Ratings Criteria. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Organic and/or M&A growth leading to production sustained over 70Mboped while maintaining unit costs; - Continued derisking and operational momentum in the Permian that results in a maintenance of economic drilling inventory and proved reserves; - Midcycle EBITDA leverage sustained below 2.5x. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A shift to negative FCF contributing to diminished liquidity or significant utilization of revolver; - Loss of operational momentum resulting in annual production sustained below 40 mboepd or materially increasing production costs; - Midcycle EBITDA leverage sustained above 3.0x. Liquidity and Debt Structure Moss Creek maintains a conservative financial policy and consistently keeps unrestricted cash on the balance sheet. At 1Q25, liquidity consisted of $511.8 million of cash on its balance sheet and full availability of borrowing capacity under the $900 million RBL facility less $10.7 million of outstanding letters of credit. With these characteristics and consistently neutral to positive FCF, Fitch expects Moss Creek will maintain adequate liquidity throughout the rating case. Moss Creek has no near-term maturities; the RBL maturity in Mar 2028 and the $750 million senior unsecured note matures in September 2031. The floating rate RBL facility has a borrowing base subject to semi-annual redeterminations. At the most recent redetermination in April 2025, the company borrowing base remained at $1.4 billion and elected amount was $900 million. At 1Q25, only $10.7 million of letters of credit was outstanding. Issuer Profile Moss Creek is an independent energy exploration and production company operating in the Midland Basin of the Permian in west Texas. 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 Moss Creek has an ESG Relevance Score of '4' for energy management, which reflects the company's cost competitiveness and financial and operational flexibility due to scale, business mix and diversification. This factor has a negative impact on the credit profile and is relevant to the rating in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Moss Creek Resources LLC LT IDR B Affirmed B senior secured LT BB Affirmed RR1 BB Moss Creek Resources Holdings, Inc. LT IDR B Affirmed B senior unsecured LT B+ Affirmed RR3 B+ NEUROONE MEDICAL: Sio Capital Management Holds 7.07% Equity Stake ----------------------------------------------------------------- Sio Capital Management, LLC, disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of June 30, 2025, it beneficially owns 3,523,663 shares of NeuroOne Medical Technologies Corp's Common Stock, par value $0.001 per share, with shared voting and dispositive power. This represents 7.07% of the 49,817,835 shares outstanding as reported in NeuroOne's Form 10-Q filed May 13, 2025. Sio Capital Management, LLC may be reached through: Jin W. Lee, Chief Compliance Officer 600 Third Avenue, 2nd Floor New York, NY 10016 Tel: 212-601-9792 A full-text copy of Sio Capital Management's SEC report is available at: https://tinyurl.com/3nr86k4c About NeuroOne Medical Technologies Headquartered in Eden Prairie, MN, NeuroOne Medical Technologies Corporation -- nmtc1.com -- is a medical technology company focused on (i) diagnostic, ablation and deep brain stimulation technology for brain related conditions such as epilepsy and Parkinson's disease; (ii) ablation and stimulation for pain management throughout the body; and (iii) drug delivery including diagnostic and stimulation capabilities. The Company is developing and commercializing thin film electrode technology for continuous electroencephalogram ("cEEG") and stereoelectrocencephalography ("sEEG"), spinal cord stimulation, brain stimulation, drug delivery and ablation solutions for patients suffering from epilepsy, Parkinson's disease, dystonia, essential tremors, chronic pain due to failed back surgeries and other pain-related neurological disorders. The Company is also developing the capability to use its sEEG electrode technology to deliver drugs or gene therapy while being able to record brain activity before, during, and after delivery. Additionally, the Company is investigating the potential applications of its technology associated with artificial intelligence. Minneapolis, Minnesota-based Baker Tilly US, LLP, the Company's auditor since 2021, issued a "going concern" qualification in its report dated Dec. 17, 2024, citing that the Company had recurring losses from operations and an accumulated deficit, expects to incur losses for the foreseeable future, and requires additional working capital. These are the reasons that raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, NeuroOne had $6.49 million in total assets, $3.56 million in total liabilities, and $2.94 million in total stockholders' equity. NEW FORTRESS: Capital World Investors Hold 2.5% Equity Stake ------------------------------------------------------------ Capital World Investors, disclosed in a Schedule 13G (Amendment No. 5) filed with the U.S. Securities and Exchange Commission that as of June 30, 2025, it beneficially owns 6,806,969 shares of New Fortress Energy Inc.'s common stock. These shares represent 2.5% of the 274,198,296 shares believed to be outstanding. The filing notes that Capital World Investors ("CWI") is a division of Capital Research and Management Company ("CRMC"), as well as its investment management subsidiaries and affiliates Capital Bank and Trust Company, Capital International, Inc., Capital International Limited, Capital International Sarl, Capital International K.K., Capital Group Private Client Services, Inc., and Capital Group Investment Management Private Limited (together with CRMC, the "investment management entities"). CWI's divisions of each of the investment management entities collectively provide investment management services under the name "Capital World Investors." Capital World Investors may be reached through: Timothy J. Moon Vice President and Senior Counsel Capital Research and Management Company 333 South Hope Street, 55th Floor Los Angeles, CA 90071 Tel: 213-486-9200 A full-text copy of Capital World Investors' SEC report is available at https://tinyurl.com/6x959sen About New Fortress Energy Inc. New Fortress Energy Inc., a Delaware corporation, is a global energy infrastructure company founded to help address energy poverty and accelerate the world's transition to reliable, affordable and clean energy. The Company owns and operates natural gas and liquefied natural gas infrastructure, ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. The Company has liquefaction, regasification and power generation operations in the United States, Jamaica, Brazil and Mexico. The Company has marine operations with vessels operating under time charters and in the spot market globally. * * * In July 2025, S&P Global Ratings lowered its issuer credit rating on New Fortress Energy Inc. (NFE) to 'CCC' from 'B-' . . . The negative outlook reflects heightened refinancing risk on the company's notes due September 2026 and an increased possibility that a payment default or distressed exchange may occur within the next 12 months. NIBA DESIGNS: Tarek Kiem of Kiem Law Named Subchapter V Trustee --------------------------------------------------------------- The Acting U.S. Trustee for Region 21 appointed Tarek Kiem, Esq., at Kiem Law, PLLC as Subchapter V trustee for NIBA Designs, 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 NIBA Designs Inc. NIBA Designs Inc. designs and manufactures custom luxury rugs for interior designers and architects, offering fully bespoke pieces handmade by artisans in India, Nepal, and Peru. The Company provides thousands of customizable rug designs in various styles and offers consultation services including custom renderings, color consulting, and product sampling for residential and commercial projects. Based in the United States, NIBA Designs works exclusively with GoodWeave-certified factories and is recognized in the design community for its craftsmanship, originality, and socially responsible production practices. NIBA Designs sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-19316) on August 13, 2025. In its petition, the Debtor reported total assets of $157,574 and total liabilities of $2,728,104. Honorable Bankruptcy Judge Scott M. Grossman handles the case. The Debtor is represented by Chad Van Horn, Esq., at Van Horn Law Group, P.A. OBSIDIAN ENERGY: DBRS Confirms B(high) Issuer Rating ---------------------------------------------------- DBRS Limited confirmed the Issuer Rating and Senior Unsecured Notes credit rating of Obsidian Energy Ltd. (Obsidian or the Company) at B (high) with Stable trends. The recovery rating on the Senior Unsecured Notes remains unchanged at RR4. KEY CREDIT RATING CONSIDERATIONS Obsidian's credit ratings are supported by its (1) higher netbacks from its oil-weighted production mix; (2) relatively lower decline rates, providing the Company with the ability to flex capital expenditures (capex) in a volatile price environment; and (3) modest financial risk profile, which, under Morningstar DBRS' base-case commodity price assumptions, provides an uplift to the credit rating. Obsidian's credit rating is constrained by its size (2025 production guidance of 30,600 barrels of oil equivalent per day (boe/d)), relatively higher operating costs, some exposure to heavy-light price differentials. Obsidian's earnings and cashflow in 2024 increased relative to 2023 as a result of higher production volumes from its development program and the Peace River Acquisition, however, they were in line with Morningstar DBRS' expectations. The Company replaced more than 220% of its annual production in 2024. In a strategic shift to focus on core heavy oil assets, Obsidian divested its operated Pembina assets in the Cardium formation for approximately $311 million, comprising $211 million in cash, 9.1 million shares in InPlay Oil Corp. (valued at approximately $85 million), and Inplay's 34.6 percent working interest in the Willesden Green Cardium Unit #2 oil field, which brought the Company's ownership of the field to 99.8%. The deal with InPlay closed in April 2025, and the cash proceeds from the sale were used to pay down the Company's draw on its credit facility. Morningstar DBRS views this transaction as credit neutral. The decline in production by about 10.3 mboe/d resulting in lower size and overall scale if offset by expected improvement in cost structure and improvement in financial risk profile. The company also reduced their asset retirement obligations (ARO) by nearly 52% as a result of disposition of Pembina assets. Morningstar DBRS notes that on July 16, 2025, the Company received a non-binding offer from a third-party buyer for their entire stake in InPlay. Morningstar DBRS expects the proceeds from the potential sale to be used to further reduce debt or support the growth program under elevated commodity price environment. The netback and reserve recycle ratio weakened in 2024 but remained strong for the current credit rating. Prior to the disposition of Pembina assets, production in Q1 2025 was slightly higher compared with Q1 2024 as the Company continued to progress on its growth plan, particularly in its Peace River asset. Based on Morningstar DBRS' base-case commodity price assumptions and the Company's annual production and capex guidance, Morningstar DBRS expects Obsidian to generate a slight FCF deficit in 2025, prior to disposition. We expect Obsidian's financial risk profile to remain strong and provide an uplift to the overall credit ratings under its base case commodity price assumptions, thereby supporting the Stable trends. Morningstar DBRS further expects the Company to continue to maintain its cash flow-to-debt ratio above 50% over the forecast horizon. CREDIT RATING DRIVERS A credit rating upgrade would require a material improvement in the Company's size as measured by production while maintaining their credit metrics. A material deterioration in the Company's cash flow-to-debt ratio to below 50%, or a material deterioration in liquidity, could trigger a negative credit rating action. EARNINGS OUTLOOK Based on Morningstar DBRS' base-case commodity price assumptions and the expected decrease in production levels following the disposition, EBITDA and EBIT are expected to be lower than in 2024. FINANCIAL OUTLOOK Morningstar DBRS expects operating cash flow in 2025 to be lower than in 2024 as a result of lower production volumes because of the disposition and base case commodity price assumptions. After factoring in the Company's budgeted capex, Morningstar DBRS expects Obsidian to generate a slight FCF deficit in 2025. Morningstar DBRS expects Obsidian's financial risk profile to remain strong and provide an uplift to the overall ratings. CREDIT RATING RATIONALE Comprehensive Business Risk Assessment (CBRA): BH/B The CBRA reflects Obsidian's relatively small production scale and lack of meaningful diversification, liquid rich production mix, higher operating cost structure compared to other larger oil weighted peers and exposure to heavy-light price differentials. Comprehensive Financial Risk Assessment (CFRA): AH Obsidian's CFRA reflects strong forecast leverage metrics as a result of the disposition. The financial risk score also factors in a negative 0.5-notch adjustment for carbon and greenhouse gas (GHG) costs. Morningstar DBRS believes the Company's financial risk profile supports the credit ratings and provides an uplift to the overall rating. Intrinsic Assessment (IA): BH The IA of BH is within the IA Range and is based on the CBRA and CFRA. To account for the volatility of the oil and gas industry, we selected the IA at the lower end of the IA Range. Additional Considerations: None Obsidian's credit ratings include no further negative or positive adjustments because of additional considerations. Notes: All figures are in Canadian dollars unless otherwise noted. ODYSSEY MARINE: Two Seas Capital Holds 9.5% Stake as of June 30 --------------------------------------------------------------- Two Seas Capital LP, Two Seas Capital GP LLC, and Sina Toussi disclosed in a Schedule 13G (Amendment No. 8) filed with the U.S. Securities and Exchange Commission that as of June 30, 2025, they beneficially own an aggregate of 3,154,808 shares of Odyssey Marine Exploration, Inc.'s Common Stock, par value $0.0001 per share. The holdings include shares held directly by the Two Seas Litigation Opportunities Fund LLC and Two Seas Global (Master) Fund LP, as well as shares issuable upon the exercise of certain warrants and purchase rights, subject to beneficial ownership limitations. The beneficial ownership represents 9.5% of the 31,335,539 shares outstanding as reported in Odyssey Marine Exploration's Form 10-Q filed on May 12, 2025. Two Seas et al. may be reached through: Sina Toussi Chief Investment Officer of TSC and Managing Member of TSC GP 32 Elm Place, 3rd Floor Rye, NY 10580 Tel: 917.536.6028 A full-text copy of Two Seas' SEC report is available at: https://tinyurl.com/4wbtafbs About Odyssey Marine Odyssey Marine Exploration, Inc. and its subsidiaries are engaged in deep-ocean exploration. Their innovative techniques are currently applied to mineral exploration and other marine survey and contracted services. The corporate headquarters are in Tampa, Florida. Tampa, Fla.-based Grant Thornton LLP, the Company's auditor since 2023, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company incurred a loss from operations of $12 million during the year ended December 31, 2024, and as of that date, the Company's current liabilities exceeded its current assets by $16 million and its total liabilities exceeded its total assets by $79 million. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. OI SA: BTG-Backed Supplier Challenges Chapter 11 Plan ----------------------------------------------------- Cristiane Lucchesi, Giovanna Bellotti Azevedo, and Rachel Gamarski of Bloomberg News report that Oi SA's bid to seek Chapter 11 protection in U.S. bankruptcy court has been delayed, blocking the Brazilian telecom provider from accessing collateral needed to obtain short-term financing for outstanding debts. The challenge comes from a supplier backed by funds managed by Banco BTG Pactual SA, which argues that Brazilian law prohibits companies from seeking creditor protection more than once within a five-year span. Oi last filed for judicial recovery -- the Brazilian equivalent of Chapter 11 -- in March 2023 in a Rio de Janeiro court. About Oi SA Headquartered in Rio de Janeiro, and operating almost exclusively within Brazil, the Oi Group provides services like fixed-line data transmission and network usage for phones, internet, and cable, Wi-Fi hot-spots in public areas, and mobile phone and data services, and employs approximately 142,000 direct and indirect employees. On June 20, 2016, pursuant to Brazilian Law No. 11.101/05 (the 'Brazilian Bankruptcy Law'), Oi S.A. and certain of its subsidiaries filed for recuperao judicial (judicial reorganization) in Brazil. On June 21, 2016, OI SA and its affiliates Telemar Norte Leste S.A. and Oi Brasil Holdings Cooperatief U.A. commenced Chapter 15 proceedings (Bankr. S.D.N.Y. Lead Case No. 16-11791). Ojas N. Shah, as foreign representative, signed the petitions. Coop and PTIF are also subject to proceedings in the Netherlands. The Chapter 15 cases are assigned to Judge Sean H. Lane. In the Chapter 15 cases, the Debtors are represented by John K. Cunningham, Esq., and Mark P. Franke, Esq., at White & Case LLP, in New York; and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and Laura L. Femino, Esq., at White & Case LLP, in Miami, Florida. On July 22, 2016, the New York Court recognized the Brazilian Proceedings as foreign main proceedings with respect to the Chapter 15 Debtors, and granted certain additional related relief. The company exited bankruptcy protection in December 2022. OMIMEX PETROLEUM: Hires Condon Tobin Sladek Sparks as Attorney -------------------------------------------------------------- Omimex Petroleum, Inc seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Condon Tobin Sladek Sparks Nerenberg, PLLC as attorney. The firm will provide these services: a. advise the Debtor of the rights, powers, duties, and obligations of the Debtor as debtor and debtor-in-possession in this Chapter 11 case; b. take all necessary actions to protect and preserve the estates of the Debtor, including the prosecution of actions on the Debtor's behalf, the defense of actions commenced against the Debtor, the negotiation of disputes in which the Debtor are involved, and the preparation of objections with respect to claims that are filed against the estate; c. to the extent necessary, assist the Debtor in the investigation of the acts, conduct, assets, and liabilities of the Debtor, and any other matters relevant to the case; d. investigate and potentially prosecute preference, fraudulent transfer, and other causes of action arising under the Debtor's avoidance powers and/or which are property of the estate; e. prepare on behalf of the Debtor, as debtor-in-possession, all necessary motions, applications, answers, orders, reports, and papers in connection with the representation of the Debtor and the administration of the estates and this Chapter 11 case; f. negotiate, draft, and present on behalf of the Debtor a plan for the reorganization of the Debtor's financial affairs, and the related disclosure statement, and any revisions, amendments, and so forth, relating to the foregoing documents, and all related materials; and g. perform all other necessary legal services in connection with this Chapter 11 case and any other bankruptcy-related representation that the Debtor requires. The firm will be paid at these rates: Attorneys $800 to $500 per hour Paraprofessional $250 to $350 per hour The firm will be paid a retainer in the amount of $25,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Jeff Carruth, Esq., a partner at Condon Tobin Sladek Sparks Nerenberg, 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: Jeff Carruth, Esq. Condon Tobin Sladek Sparks Nerenberg, PLLC 8080 Park Lane, Suite 700 Dallas, TX 75231 Tel: (214) 265-3834 E-mail: jcarruth@condontobin.com About Omimex Petroleum Omimex Petroleum Inc. provides energy and fertilizer services. It focuses on the exploration, development, acquisition and operation of oil and gas properties, and production of various fertilizers. Omimex Petroleum serves oil and gas industry internationally. Omimex sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 24-34018) on Dec. 10, 2024, with $1 million to $10 million in both assets and liabilities. Christopher Chambers, sole director of Omimex, signed the petition. The Debtor is represented by Jeff Caruth, Esq., at Weycer, Kaplan, Pulaski & Zuber, P.C. ONDAS HOLDINGS: Reports $10.75 Million Net Loss for Fiscal Q2 ------------------------------------------------------------- Ondas Holdings Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $10.75 million for the three months ended June 30, 2025, compared to a net loss of $8.27 million for the three months ended June 30, 2024. Revenue for the three months ended June 30, 2025, was $6.27 million compared to a revenue of $957,851 for the same period in 2024. For the six months ended June 30, 2025, the Company reported a net loss of $24.89 million, compared to a net loss of $18.15 million for the same period in 2024. Revenue for the six months ended June 30, 2025 was $10.52 million compared to a revenue of $1.58 million for the same period in 2024. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/4fcrepm9 About Ondas Holdings Marlborough, Mass.-based Ondas Holdings Inc. provides private wireless data solutions through its subsidiary, Ondas Networks Inc., and commercial drone solutions through Ondas Autonomous Systems Inc. (OAS), which includes wholly owned subsidiaries American Robotics, Inc. and Airobotics LTD. OAS focuses on the design, development, and marketing of autonomous drone solutions, while Ondas Networks specializes in proprietary, software-based wireless broadband technology for both established and emerging commercial and government markets. Together, Ondas Networks, American Robotics, and Airobotics deliver enhanced connectivity, situational awareness, and data collection capabilities to users in defense, homeland security, public safety, and other critical industrial and government sectors. In an audit report dated March 12, 2025, the Company's auditor, Rosenberg Rich Baker Berman, P.A., issued a "going concern" qualification, citing that the Company has experienced recurring losses from operations, negative cash flows from operations and a working capital deficit as of Dec. 31, 2024. As of Dec. 31, 2024, Ondas Holdings had $109.62 million in total assets, $73.68 million in total liabilities, and $16.58 million in total stockholders' equity. As of June 30, 2025, the Company had $151.95 million in total assets, $39.29 million in total liabilities, and $90.82 million in total stockholders' equity. PALMAS ATHLETIC: Has Deal on Cash Collateral Access --------------------------------------------------- Palmas Athletic Club Corp. and UBS Trust Company of Puerto Rico advise the U.S. Bankruptcy Court for the District of Puerto Rico that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. The Debtor, which owns and operates real estate and recreational facilities at Palmas del Mar, Puerto Rico, including golf courses, a clubhouse, beach facilities, and a racquet center—filed for Chapter 11 bankruptcy on August 4. The case arises from longstanding financial obligations dating back to a 2000 AFICA bond issuance of $30 million, which funded the development of the property. These obligations, originally owed by the Debtor's predecessor, PCCI, were assumed by the Debtor in 2010, including multiple mortgages and related financial instruments. In 2023, following a PROMESA restructuring, UBS assumed TDF’s rights under these financial agreements. The stipulation outlines that the Debtor may use $2,388,440 of cash collateral over a three-month period ending November 18, strictly for budgeted operating expenses, subject to oversight and detailed financial reporting. As part of this arrangement, the Debtor agrees to provide UBS with monthly adequate protection payments of $25,000, replacement liens on post-petition assets, and a super-priority claim in favor of UBS to cover any loss in collateral value. The Debtor also waives any rights to surcharge the collateral under 11 U.S.C. Section 506(c), grants cross-collateral rights, and affirms UBS's right to credit bid in any asset sale. A court hearing is scheduled for August 26. UBS is represented by: Eric Perez-Ochoa, Esq. ADSUAR P.O. Box 70294 San Juan, PR 00936-8294 Tel: 787.756.9000 Fax: 787.756.9010 epo@amgprlaw.com A copy of the motion is available at https://urlcurt.com/u?l=GRgBv1 from PacerMonitor.com. About Palmas Athletic Club Corp. Palmas Athletic Club Corp. owns and operates a 420-acre recreational property within Palmas Del Mar Resort in Humacao, Puerto Rico. The site includes two 18-hole golf courses, a 22,200-square-foot clubhouse, a 5,600-square-foot beach clubhouse, and related facilities. Palmas Athletic Club sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03489) on August 4, 2025. In its petition, the Debtor reports total assets of $16,793,944 and total liabilities of $36,514,983. Judge Maria De Los Angeles Gonzalez oversees the case. The Debtor is represented by Charles A. Cuprill Hernandez, Esq., at Charles A. Cuprill, PSC, LAW OFFICES. The Debtor's Financial Consultant is CPA Luis R. Carrasquillo & Co, PSC. PARKERVISION INC: Reports $1.6 Million Net Loss for Fiscal Q2 ------------------------------------------------------------- ParkerVision, Inc., filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $1.6 million for the three months ended June 30, 2025, compared to a net loss of $327 thousand for the three months ended June 30, 2024. For the six months ended June 30, 2025, the Company reported a net loss of $5.4 million, compared to a net loss of $1.02 million for the same period in 2024. Additionally, for the six months ended June 30, 2025, the Company incurred negative cash flows from operations of approximately $3 million. "At June 30, 2025, we had cash and cash equivalents of approximately $2 million and an accumulated deficit of approximately $453.6 million. At June 30, 2025, we had $2.5 million in current liabilities, including approximately $1.1 million in convertible debt that matures over the next twelve months. In addition, a significant amount of future proceeds that we may receive from our patent enforcement and licensing programs will first be utilized to repay borrowings and legal fees and expenses under our contingent funding arrangements. These circumstances raise substantial doubt about our ability to continue to operate as a going concern for a period of one year following the issue date of these unaudited condensed consolidated financial statements. " "The timing and amount of proceeds from our patent enforcement actions are difficult to predict and there can be no assurance we will receive any proceeds from these enforcement actions. Refer to Note 12 for a complete discussion of our patent enforcement proceedings. We expect that proceeds received by us from patent enforcement actions and technology licenses over the next twelve months may not alone be sufficient to cover our working capital requirements. We anticipate that all of our outstanding convertible notes will either: (i) be converted by the holders prior to their scheduled maturity dates, or (ii) have their maturity dates automatically extended as provided under the terms of certain agreements; however, conversion and/or extension is at the option of the holder and there can be no assurance with respect to the holder's behavior." "Even with the conversions or extensions of our convertible debt by the holders, our current capital resources are not sufficient to meet our liquidity needs for the next twelve months and we may be required to seek additional capital. Our ability to meet our liquidity needs for the next twelve months is dependent upon: (i) our ability to successfully negotiate licensing agreements and/or settlements relating to the use of our technologies by others in excess of our contingent payment obligations, (ii) our ability to control operating costs, (iii) the behavior of our convertible note holders, and/or (iv) our ability to obtain additional debt or equity financing." "We expect to continue to invest in the support of our patent licensing and enforcement program. The long-term continuation of our business plan is dependent upon the generation of sufficient cash flows from our technology licenses to offset expenses and debt obligations. In the event that we do not generate sufficient cash flows, we will be required to obtain additional funding through public or private debt or equity financing or contingent fee arrangements and/or reduce operating costs. Failure to generate sufficient cash flows, raise additional capital through debt or equity financings or contingent fee arrangements, and/or reduce operating costs will have a material adverse effect on our ability to meet our long-term liquidity needs and achieve our intended long-term business objectives," the Company concluded. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/yvbt74aj About ParkerVision Jacksonville, Fla.-based ParkerVision, Inc., and its wholly-owned German subsidiary, ParkerVision GmbH is in the business of innovating fundamental wireless hardware technologies and products. The Company has designed and developed proprietary RF technologies and integrated circuits based on those technologies, and the Company licenses its technologies to others for use in wireless communication products. Atlanta, Ga.-based Frazier & Deeter, LLC, the Company's auditor since 2024, issued a "going concern" qualification in its report dated March 24, 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 resources are not sufficient to meet their liquidity needs for the next 12 months, the Company has losses from operations, negative operating cash flows and an accumulated deficit. These factors raise substantial doubt about the Company's ability to continue as a going concern. Parkervision disclosed $5,879,000 in total assets, $52,291,000 in total liabilities, and $46,412,000 in total shareholders' deficit at December 31, 2024. As of June 30, 2025, the Company had $3.1 million in total assets, $51.4 in total liabilities, and $48.3 million in total shareholders' deficit. PCF GMBH: Fitch Lowers Rating on Sr. Secured Notes to 'CCC+' ------------------------------------------------------------ Fitch Ratings has downgraded PCF GmbH's (PCF) senior secured notes (SSNs) to 'CCC+' from 'B-'. The Recovery Rating on the notes is 'RR4'. Concurrently Fitch has affirmed PCF's Long-Term Issuer Default Rating at 'CCC+'. The affirmation of the IDR reflects the absence of near-term refinancing needs, which is offset by persistently high leverage and weak liquidity. Fitch forecasts PCF to generate positive FCF only from 2027 onwards and thus factor in the ongoing additional financing plans the company has put in place, alongside potential of sponsor support to ensure adequate liquidity. The downgrade of the SSNs reflects the incremental debt PCF has raised to manage its operations and capex. Key Rating Drivers Eroded FCF Weakens Liquidity: Fitch forecasts PCF's FCF to remain negative in 2025-2026, driven by lower EBITDA, higher interest costs and higher capex especially for Project Nord. Fitch therefore expects PCF's liquidity profile to remain weak with declining cash balances and increased debt to fund its negative FCF. Nonetheless, the sponsor's continued commitment supports liquidity, highlighted by the recent EUR75 million injection in 2024. No Immediate Refinancing Requirement: PCF completed its amend and extend transaction in 2024, extending the maturity of its senior secured notes maturity to April 2029, from August 2026, and of its RCF to January 2029, from January 2026. The company can partly pay its coupon in kind, which will raise gross debt but provide flexibility to manage subdued performance in 2025-2026. Profitability Revised Lower: Fitch forecasts PCF's EBITDA margin will reach 7.4% in 2025, down from its previous forecasts of 11.8% for the same period. This is primarily driven by moderation in pricing power, especially in engineering wood, alongside lower demand. This results in materially lower EBITDA generation compared with its previous estimates, alongside Fitch's expectation of low single-digit demand growth from 2026. Project Nord to Improve Margins: Fitch forecasts a more gradual improvement to EBITDA margins in the range of 10.7%-13.6% across 2026-2028. Its expectations for EBITDA improvement are primarily due to Project Nord becoming fully operational from 2026 and various group level cost-saving initiatives. High Leverage: Fitch forecasts PCF's EBITDA gross leverage will reach 13.7x by end-2025 and then reduce but remain high, at 9.5x, in 2026. Fitch expects continued material deleveraging from 2027, with leverage to fall below 7.0x by end-2028, which is considerably slower than its previous expectations of EBITDA leverage reducing below 6.0x by end- 2026 . The delay in deleveraging reflects weaker EBITDA generation due to softer market conditions and sustained pricing pressure. Fitch now expects demand recovery from 2026, a year later than previously forecast. Stable Business Profile: PCF''s limited geographical and product diversification is mitigated by its exposure to the more stable renovation market versus the new-build market. About approximately 75% of its engineered wood product revenue comes from renovation activities. Although its financial profile has been affected by subdued softer market conditions, its business profile remains consistent with a lower ''BB'' rating category. Peer Analysis Fitch compares PCF with HESTIAFLOOR 2 (Gerflor; B/Positive), Tarkett Participation (B+/Positive), and Victoria PLC (CCC-/RWN). With forecast revenue at just below EUR1 billion in 2025, PCF is slightly smaller than Gerflor and Victoria. Additionally, its high exposure to Germany (around 50% of sales) results in lower geographical diversification than its peers. Similar to Gerflor, PCF is primarily a B2B company but is less diversified across sectors, being focused on kitchen manufacturers, furniture makers and wholesale, versus Gerflor's broader exposure to contractors in residential, public, social and commercial construction, as well as transport and sports facilities. Like its peers, PCF benefits from a strong exposure to the more stable renovation activities, at about 70% of revenue (including its Silekol) division), or 75% for its engineered wood products business. PCF's forecast EBITDA margins are slightly higher than those of Victoria, partially supported by its own biomass combined heat and power plants that cover virtually all its energy needs. PCF's forecast EBITDA leverage of 9.5x in 2026 remains in line with Victoria's FY26 (year ending March) but is higher than that of Gerflor and Tarkett. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer - Revenue to rise by 5%-6% in 2025-2026 and 7.5%-9% in 2027-2028. Growth in revenue is backed by Fitch's expectations of improving demand (in the low-single digits) and pricing initiatives - EBITDA margin at 7.4% in 2025 and 10.7%-13.6% in 2026-2028, driven by cost savings, especially in the panel division, and the incremental margin contribution from Project Nord - Capex at EUR62 million for 2025, driven by Project Nord, followed by EUR42 million annually across 2026-2028 - No M&As and dividends between 2025 and 2028 Recovery Analysis - The recovery analysis assumes that PCF would be a going-concern (GC) in bankruptcy and that it would be reorganised rather than liquidated. - Fitch estimates a GC value available for creditor claims at about EUR533 million, assuming GC EBITDA of EUR115 million. The GC EBITDA reflects a sustainable, post-reorganisation EBITDA on which Fitch bases its enterprise valuation. Fitch's GC EBITDA also factors in EBITDA contribution from Project Nord, which is due to be fully operational from 2026. - A 10% administrative claim is assumed. - Fitch applies an enterprise value multiple of 5.5x to EBITDA to calculate a post-reorganisation valuation, which is comparable with multiples applied to other building products producers. The multiple is based on PCF's strong market position in western Europe and fairly high barriers to entry. The multiple also reflects its smaller scale than some other Fitch-rated peers', concentrated geographical diversification and limited range of products. - Fitch deducts about EUR36 million from the enterprise value for its various factoring facilities. - Fitch estimates the total amount of creditor claims at EUR975 million. This comprises super senior facilities including a secured RCF of EUR65 million, an equipment financing facility of EUR6 million and other debt (including the new debt raised in 2025). The remainder comprises the senior secured notes of EUR879 million (face value at EUR750 million plus call premium plus 'early-bird' premium at redemption date of 15 April 2029), and a small remaining portion of other unsecured debt. - These assumptions result in a recovery rate for the senior secured notes within the 'RR4" (previously "RR3)' range in line with the IDR. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Lack of a deleveraging trajectory - Deterioration in PCF's liquidity profile Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA margin above 9% - Neutral FCF margin from 2026 onwards - EBITDA leverage consistently below 7.5x - EBITDA interest coverage above 2.0x Liquidity and Debt Structure At end-March 2025, PCF's liquidity was supported by EUR11.3 million of available cash, down from EUR42 million at end-2024 (Fitch-adjusted) and a fully undrawn EUR65 million RCF that matures in January 2029. The lower cash balance was due to lower EBITDA, seasonally higher working capital outflows (which typically recover in the second half) and increased capex for Project Nord. Fitch forecasts cumulative negative FCF of EUR66 million for 2025-2026. At end-December 2024, PCF's debt maturity comprised EUR775 million of senior secured notes (including the pay-in-kind component and interest accrued on bonds) due in April 2029, EUR36 million of factoring, EUR7.1 million of equipment financing and some other unsecured debt. Issuer Profile PCF (Pfleiderer group) is one of the leading European manufacturers of wood products, specialising in the production of materials for the furniture industry, the interior industry and construction (i.e. active only in the B2B sector). External Appeal Committee Outcome In accordance with Fitch's policies, the issuer appealed and provided additional information to Fitch that resulted in a rating action that is different than the original rating committee outcome. 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 ----------- ------ -------- ----- PCF GmbH LT IDR CCC+ Affirmed CCC+ senior secured LT CCC+ Downgrade RR4 B- PORCELATTO CORP: Files Emergency Bid to Use Cash Collateral ----------------------------------------------------------- Porcelanatto Corp. asked the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division, for authority to use cash collateral and provide adequate protection. The need for relief is urgent, as the Debtor has minimal cash on hand but holds approximately $120,000 worth of tile inventory and about $10,000 in accounts receivable. The Debtor's business model depends on selling existing inventory and replacing it with new stock to maintain operations. Without immediate access to cash collateral, the Debtor cannot continue business operations or propose a viable plan of reorganization, risking substantial harm to the estate and its creditors. The primary secured creditor is the U.S. Small Business Administration, which holds a perfected security interest in all of the Debtor’s assets pursuant to a UCC-1 filing dated August 13, 2020. The SBA loan, originally provided by Chase Bank and guaranteed by the SBA, is believed to have a remaining balance of approximately $1.6 million. Other creditors have also filed UCC-1 financing statements namely, Greenwich Capital Management, L.P., Corporation Service Company, and Radiance Funding, LLC. However, the Debtor believes that these additional secured claims are wholly unsecured under 11 U.S.C. Section 506(a) because the total value of the Debtor's assets—estimated at under $130,000—is insufficient to support these claims. To ensure that secured creditors are adequately protected while the Debtor uses their cash collateral, the Debtor proposed to grant post-petition replacement liens on assets acquired or generated after the petition date. These replacement liens would be of the same nature, validity, extent, and priority as the pre-petition liens but would remain subordinate to certain administrative expenses, including fees owed to the U.S. Trustee, court costs, and professional fees approved by the court. The Debtor also sought authority to deviate from line items in the interim budget by up to 10% per category or exceed that amount as long as the aggregate deviation does not surpass 10% of the total budget. A court hearing is scheduled for August 27. About Porcelanatto Corp. Porcelanatto Corp. is a Miami-based importer and distributor of porcelain and ceramic tiles. Porcelanatto sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-17669) on July 3, 2025. In its petition, the Debtor reported estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. Judge Corali Lopez-Castro handles the case. The Debtor is represented by Diego Mendez, Esq., at Mendez Law Offices, PLLC. PRAESUM HEALTHCARE: Gets Interim OK to Use Cash Collateral ---------------------------------------------------------- Praesum Healthcare Services, LLC and affiliates received interim approval from the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, to use cash collateral. The interim order authorized the Debtors to use cash collateral through September 3 to pay business expenses consistent with their budget. The Debtors were also authorized to exceed line items by up to 10%, or more if total excesses do not exceed 10% in the aggregate of the total budget. As adequate protection, City National Bank of Florida and nine other secured creditors will be granted post-petition security interests in and liens on the Debtors' personal property, with the same priority and extent as their pre-petition security interests in such property. The other creditors are C T Corporation System; ASD Special Healthcare, LLC; Amerisourcebergen Drug Corporation; Navitas Credit Corp.; Family Funding Group, LLC; First Corporate Solutions; I Got Funded, LLC; and the U.S. Small Business Administration. The next hearing is set for September 3. The Debtor provides administrative support and centralized cash management for 27 affiliated treatment providers that operate across the detox, residential, and outpatient substance abuse treatment spectrum in multiple states. Cash from each treatment provider is swept daily into a Praesum-controlled account, from which operating expenses are paid. The Debtors are requesting interim approval to use cash collateral for 30 days, subject to a consolidated budget, and to exceed line items by up to 10%, or more if total excesses do not exceed 10% in the aggregate. City National Bank of Florida, which provided $23 million in financing to Praesum in 2023, holds a blanket lien on the assets of all 28 Debtors and has declared the loan in default, filing a lawsuit and seeking a receiver. About Praesum Healthcare Services Praesum Healthcare Services LLC operates a network of behavioral health and addiction treatment facilities across the United States, offering a full continuum of care that includes medical detoxification, residential rehabilitation, and outpatient counseling. The Company's brands include Sunrise Detox, which provides medically supervised detox services, Evolve Recovery Center, which delivers residential treatment programs, and The Counseling Center, which offers outpatient and intensive outpatient therapy, with locations in multiple states including New Jersey, New York, Massachusetts, Georgia, and Florida. Founded in 2004, Praesum Healthcare manages more than two dozen centers under these brands, serving individuals with substance use disorders and co-occurring mental health conditions. Praesum Healthcare Services LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Lead Case No. 25-19335) on August 13, 2025. In its petition, the Debtor reports estimated assets between $50 million and $100 million and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Erik P. Kimball handles the case. The Debtor is represented by Bradley S. Shraiberg, Esq., at Shraiberg Page, PA. City National Bank of Florida, as lender, is represented by: Alexandra D. Blye, Esq. Carlton Fields, P.A. 525 Okeechobee Boulevard, Suite 1200 West Palm Beach, FL 33401 Telephone: (561) 659-7070 ablye@carltonfields.com PREMIER DATACOM: Emerges from Chapter 11 with Sundara's Investment ------------------------------------------------------------------ Premier DataCom, LLC, a leading Texas-based low-voltage contractor, on August 22, 2025, announced its successful emergence from Chapter 11 bankruptcy. The exit was facilitated by Sundara Partners, LLC, which provided a debtor-in-possession loan and acquired a majority ownership stake in the company. The restructuring, confirmed by the U.S. Bankruptcy Court for the Western District of Texas, positions PDC with a revitalized balance sheet and the strategic resources to support its ongoing growth. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250822631414/en/ Ryan Willis, President of PDC, will continue to lead the company and retain partial ownership of the business. "Today marks a new chapter for Premier DataCom," said Mr. Willis. "With a fortified financial foundation, we can now continue our focus on delivering exceptional, white glove service to our customers. Sundara is the ideal partner for us; they share our strategic vision and have provided the resources necessary to achieve it. We are energized and ready to show the market our renewed strength." The partnership comes at a pivotal moment, as Texas experiences a surge in demand for technology-enabled infrastructure fueled by the proliferation of data centers and artificial intelligence. With its new capitalization and strengthened operations, PDC is ideally positioned to address this demand across its structured data cabling, fiber optic, access control, security, and DAS/ERRCS offerings. "We are incredibly proud of the partnership Premier DataCom and Sundara created to implement this turnaround," said Austin Taylor and Jordan Berger, Managing Partners at Sundara Partners. "PDC was built on a legacy of customer-centricity, service quality, and trust--values established by its founder, Charles "Chuck" Brooks. Sundara will provide the strategic, financial, and operational resources necessary to carry that legacy forward." In the transaction, Premier DataCom was represented by Jackson Walker LLP, and Sundara Partners by Westerman Ball Ederer Miller Zucker & Sharfstein, LLP. About Sundara Partners Sundara Partners is a private investment firm that acquires and revitalizes businesses encountering special situations or distress. Sundara provides highly customized capital solutions and boots-on-the-ground turnaround expertise to invest in, transform, and grow small and medium-sized businesses. Learn more at www.sundarapartners.com. About Premier Datacom, Inc. Premier Datacom, Inc. is a technology construction services company specializing in low voltage cabling systems and components, data transmission, and security systems. Premier Datacom sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-10097) on January 24, 2025. In the petition signed by Glenn Ryan Willis, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Shad Robinson oversees the case. Jennifer F. Wertz, Esq., at Jackson Walker LLP represents the Debtor as counsel. QUALITY EDUCATION: Moody's Affirms Ba2 Rating on 2023A/B Rev. Bonds ------------------------------------------------------------------- Moody's Ratings has affirmed the Ba2 revenue bond rating on Quality Education Academy, NC's Charter School Revenue Bonds, Series 2023A and Taxable Charter School Revenue Bonds, Series 2023B. The bonds were issued through the Public Finance Authority, WI. The academy had approximately $12 million of revenue debt outstanding. The outlook is stable. RATINGS RATIONALE The Ba2 rating reflects the academy's established operating history and fair competitive profile, anchored by relatively strong academic performance despite modest student demand. Enrollment will continue to increase for the 2025-26 school year following the expansion at the middle/high school campus. Operating performance will remain narrow, with management reporting annual debt service of 1.4x based on financial results through the fourth quarter of fiscal 2025. Liquidity has weakened in recent years, declining to 69 days cash on hand in fiscal 2024, partially due to investments to support academic initiatives. Interim financial reports indicate that liquidity will stabilize in fiscal 2025, driven by reduced spending on additional services employed to support academic performance over the last few years. Leverage is moderately high, with spendable cash and investments to debt of 16%. The absence of defined benefit pension plan contributions adds to operating flexibility, reflected in a manageable fixed costs of 9% of operating revenue. The academy remains in compliance with its authorizer, the North Carolia State Board of Education, and prospects are strong for another renewal in 2027. RATING OUTLOOK The stable outlook reflects the likelihood of continued enrollment growth in the 2025-26 school year that will support improved operating performance. The stable outlook also reflects maintenance of stable liquidity, no additional debt or significant capital needs, and improved reporting of lease obligations in the academy's fiscal 2025 audited financial statements. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Sustained improvement in operating performance resulting in strengthened debt service coverage -- Material improvement in liquidity to above 100 days cash on hand FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Further weakening of liquidity to below 60 days cash on hand -- Narrowing of operating performance the resulting in annual debt service coverage below 1.15x PROFILE Quality Education Academy, NC is a self-managed charter school serving students in grades K-12 from an elementary school campus and a middle/high school campus both located in Winston-Salem. The academy served 781 students in Kindergarten through 12th grade in the 2024-25 school year and operates under a charter contract originally granted in 1997. The academy's charter contract was most recently renewed in 2017 for a 10-year term, expiring on June 30, 2027. METHODOLOGY The principal methodology used in these ratings was US Charter Schools published in April 2024. REBELLION POINT: Gets Extension to Access Cash Collateral --------------------------------------------------------- Rebellion Point Entertainment, LLC received another extension from the U.S. Bankruptcy Court for the Eastern District of North Carolina, Greenville Division, to use cash collateral. The fifth interim order penned by Judge Pamela McAfee authorized the Debtor's use of cash collateral to pay the expenses set forth in its 30-day budget, which shows total expenses of $67,080. As protection for the Debtor's use of their cash collateral, Dogwood State Bank and creditors that may hold potential secured claims will receive a post-petition lien on the Debtor's cash and inventory similar to their pre-bankruptcy collateral. In addition, Dogwood State Bank will receive payment in the amount of $3,300 beginning on Sept. 1. The Debtor's authority to use cash collateral will expire or terminate upon cessation of its business or non-compliance with or default of the terms and provisions of the fifth interim order. The next hearing is scheduled for Sept. 10. About Rebellion Point Entertainment Rebellion Point Entertainment, LLC, also known as East Coast Game Rooms, is a family-owned retailer and outfitter based in Kitty Hawk, N.C., with over four decades of experience in both residential and commercial entertainment spaces. It offers a wide selection of game room products including arcade machines, billiards, ping pong, shuffleboard, and custom furniture. It also provides rentals, delivery, installation, and repair services for customers in the Outer Banks and broader East Coast region. Rebellion Point Entertainment filed Chapter 11 petition (Bankr. E.D. N.C. Case No. 25-01352) on April 14, 2025, listing up to $500,000 in assets and up to $10 million in liabilities. David M. Teague, company owner, signed the petition. Judge Pamela W. Mcafee oversees the case. William P. Janvier, Esq., at Stevens Martin Vaughn & Tadych, PLLC, is the Debtor's legal counsel. Dogwood State Bank, as secured creditor, is represented by: William Walt Pettit, Esq. Hutchens Law Firm, LLP 6230 Fairview Rd, Suite 315 Charlotte, NC 28210 Tel: (704) 362-9255 walt.pettit@hutchenslawfirm.com REKOR SYSTEMS: Net Loss Narrows to $8.7 Million in Fiscal Q2 ------------------------------------------------------------ Rekor Systems, Inc., filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $8.7 million for the three months ended June 30, 2025, compared to a net loss of $9.8 million for the three months ended June 30, 2024. Revenue for the three months ended June 30, 2025, was $12.4 million, compared to a revenue of $12.4 million for the same period in 2024. For the six months ended June 30, 2025, the Company reported a net loss of $19.5 million, compared to a net loss of $28.4 million for the same period in 2024. Revenue for the six months ended June 30, 2025 was $21.6 million, compared to a revenue of $22.2 million for the same period in 2024. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/4x785d8b About Rekor Systems Rekor Systems, Inc., headquartered in Columbia, Md., is working to revolutionize public safety, urban mobility, and transportation management using AI-powered solutions designed to meet the distinct demands of each market it serves. The Company works hand-in-hand with its customers to deliver mission-critical traffic and engineering services that assist them in achieving their goals. The Company's vision is to improve the lives of citizens and the world around them by enabling safer, smarter, and greener roadways and communities. The Company works towards this by collecting, connecting, and organizing mobility data, and making it accessible and useful to its customers for real-time insights and decisioning for situational awareness, rapid response, risk mitigation, and predictive analytics for resource and infrastructure planning and reporting. Morristown, N.J.-based Marcum LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has incurred significant losses and will need to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of December 31, 2024, the Company had $82.5 million in total assets, $48.3 million in total liabilities, and $34.1 million in total stockholders' equity. As of June 30, 2025, the Company had $80.1 million in total assets, $44.7 million in total liabilities, and $35.4 million in total stockholders' equity. RICHMOND BELLY: Court Extends Cash Collateral Access to Sept. 30 ---------------------------------------------------------------- Richmond Belly Ventures, LLC and its affiliates received third interim approval from the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division, to use cash collateral through September 30. The court's order authorized the Debtors' interim use of cash collateral to pay operating expenses in accordance with their budget. As protection for the use of their cash collateral, secured creditors including Blue Ridge Bank, N.A. and the U.S. Small Business Administration were granted a replacement lien on cash collateral generated by the Debtors after the petition date. As further protection, the secured creditors will receive monthly payments as laid out in the budget. Blue Ridge Bank will receive a monthly payment of $3,000 from the cash collateral of Scotts Belly Ventures, LLC, one of the affiliated debtors. A fourth interim hearing is set for September 24. Richmond Belly Ventures has SBA Economic Injury and Disaster Loans totaling nearly $495,100 while Scotts Belly Ventures owes Blue Ridge Bank approximately $116,600 on a loan originally for $525,000. Meanwhile, certain merchant cash advance (MCA) creditors may hold liens but the Debtors do not acknowledge the validity of such liens. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/scceC from PacerMonitor.com. About Richmond Belly Ventures Richmond Belly Ventures, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 25-32131) on May 29, 2025, listing up to $500,000 in assets and up to $1 million in liabilities. John Bokel, managing member of Richmond Belly Ventures, signed the petition. Judge Hon. Keith L Phillips oversees the case. Kollin G. Bender, Esq., at Hirschler Fleischer, P.C., is the Debtor's legal counsel. Blue Ridge Bank, N.A. is represented by: Jeremy S. Williams, Esq. Kutak Rock, LLP 1021 East Cary Street, Suite 810 Richmond, VA 23219 Telephone: (804) 644-1700 Facsimile: (804) 783-6192 jeremy.williams@kutakrock.com RITE AID: Execs Win Securities Case Dismissal Over Opioids, Retail ------------------------------------------------------------------ Martina Barash of Bloomberg Law reports that a federal judge has dismissed a proposed class action accusing several Rite Aid Corp. executives of misleading investors about the drugstore chain's opioid exposure and retail strategy. Judge Kelley B. Hodge of the U.S. District Court for the Eastern District of Pennsylvania ruled that investors failed to show that current and former officers of the now-bankrupt company made false or misleading statements. She also found the investors did not adequately connect their alleged losses to news reports, earnings calls, or press releases they cited as corrective disclosures, according to an order docketed Friday, August 22, 2025. According to Bloomberg Law, the suit, which partly stemmed from opioid-related regulatory actions and product liability cases against retail pharmacy chains, claimed Rite Aid ignored prescription red flags between 2015 and 2019 while burdened with debt from failed acquisitions. Investors also challenged the company's RxEvolution strategy -- an initiative focused on pharmacist-led engagement, in-store telehealth "wellness rooms," and other retail changes -- which was disrupted by the Covid-19 pandemic. Hodge determined that many statements the executives made in SEC filings about regulatory risks were opinions, not falsehoods, and that optimistic commentary about RxEvolution was inactionable. She further held that the loss causation allegations fell short, noting the disclosures only confirmed Rite Aid’s longstanding financial struggles. Rite Aid itself was voluntarily dismissed from the case following resolution of its 2024 Chapter 11, though the company filed for bankruptcy again in May 2025. In April, Hodge dismissed a separate investor suit over the company's pharmacy benefit management division, the report states. The case is Holland v. Standley, No. 2:23-cv-02962, U.S. District Court, Eastern District of Pennsylvania (Aug. 21, 2025). Levi & Korsinsky LLP represented the investors, while Morgan, Lewis & Bockius LLP represented the defendants. 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. ROYAL GRANT: Section 341(a) Meeting of Creditors on September 18 ---------------------------------------------------------------- On August 14, 2025, Royal Grant LLC filed Chapter 11 protection in the Southern District of New York. According to court filing, the Debtor reports up to $50,000 in debt owed to 1 and 49 creditors. The petition states funds will not be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on September 18, 2025 at 02:00 PM at Office of UST (TELECONFERENCE ONLY). About Royal Grant LLC Royal Grant LLC is a New York-based real estate company. Royal Grant LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11778) on August 14, 2025. In its petition, the Debtor reports estimated assets between $50,000 and $100,000 and estimated liabilities up to $50,000. Honorable Bankruptcy Judge Lisa G. Beckerman handles the case. SAINT CLOUD: 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 Saint Cloud, Inc. 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 Saint Cloud Saint Cloud, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 25-41443) on August 12, 2025. At the time of the filing, the Debtor reported $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. SAVANNAH HOLDINGS: Case Summary & Two Unsecured Creditors --------------------------------------------------------- Debtor: Savannah Holdings LLC 9109 Hollis Court Boulevard Queens Village, NY 11428 Business Description: Savannah Holdings LLC is a real estate company that owns a vacant land parcel located at 100-35 200th Street in Hollis, New York, which has an estimated value of $250,000. The firm operates as a single- asset real estate entity under U.S. law, with its holdings concentrated in this property. Chapter 11 Petition Date: August 22, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-44018 Judge: Hon. Nancy Hershey Lord Debtor's Counsel: Charles Wertman, Esq. LAW OFFICES OF CHARLES WERTMAN P.C. 100 Merrick Road Suite 304W Rockville Centre, NY 11570-4807 Tel: (516) 284-0900 E-mail: charles@cwertmanlaw.com Total Assets: $250,000 Total Liabilities: $1,050,000 Marlon Lloyd signed the petition in his capacity as member. A full-text copy of the petition, which includes a list of the Debtor's two unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/T6TW2CY/Savannah_Holdings_LLC__nyebke-25-44018__0001.0.pdf?mcid=tGE4TAMA SHERWOOD HOSPITALITY: Seeks to Use Cash Collateral -------------------------------------------------- Sherwood Hospitality Group, LLC and DVKOCR Tigard, LLC asked the U.S. Bankruptcy Court for the District of Oregon for authority to use cash collateral through September 18. The requested extension was made with the agreement of the lien creditors, L-O Sherwood Finance, LLC and L-O Tigard Finance, LLC, under the same terms and conditions as the prior cash collateral orders. The Debtors asserted that continuing the existing cash collateral arrangement is essential for ongoing business operations and aligns with the rights granted under 11 U.S.C. section 363(c)(2)(A), which allows use of cash collateral with creditor consent. The supporting order was stipulated and signed by attorneys for both the Debtors and the lien creditors. It modifies paragraph 9a of the previous cash collateral order to reflect the new September 18 date, while leaving all other provisions intact. A copy of the motion is available at https://urlcurt.com/u?l=T0U6pe from PacerMonitor.com. About Sherwood Hospitality Group Sherwood Hospitality Group LLC, doing business as Hampton Inn Sherwood Portland, operating as Hampton Inn Sherwood Portland, is a hospitality company based in Sherwood, Oregon. The Company manages a hotel offering amenities like free breakfast, free Wi-Fi, a heated indoor pool, and a fitness center. Sherwood Hospitality Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Or. Case No. 25-30484) on February 17, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. Judge Peter C. Mckittrick handles the case. The Debtor is represented by Douglas R. Ricks, Esq., at Sussman Shank, LLP. SIERRA NEVADA BUILDERS: Seeks Subchapter V Bankruptcy in Nevada --------------------------------------------------------------- Sierra Nevada Builders LLC filed for Chapter 11 bankruptcy in the District of Nevada, listing creditors that include lumber suppliers, national home improvement chains such as Home Depot and Lowe's, and the Nevada State Contractors Board—underscoring its ties to the construction industry. The company is pursuing its case under Subchapter V of Chapter 11, a simplified reorganization framework for small businesses. The filing states that unsecured creditors should receive distributions during the process. About Sierra Nevada Builders LLC Sierra Nevada Builders LLC is a construction company based in Sparks, Nevada that appears to operate as a building contractor. The business operates from a principal place of business at 430 Coney Island Drive in Sparks, Washoe County. Sierra Nevada Builders LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-50741) on August 13, 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 Hilary L. Barnes handles the case. The Debtor is represented by Stephen R. Harris, Esq. at Harris Law Practice LLC. SIERRA NEVADA: Brian Shapiro Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 17 appointed Brian Shapiro as Subchapter V trustee for Sierra Nevada Builders, L.L.C. Mr. Shapiro will be paid an hourly fee of $650 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Shapiro declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Brian Shapiro 510 S. 8th Street Las Vegas, NV 89101 Phone: (702) 386-8600 Email: brian@trusteeshapiro.com About Sierra Nevada Builders Sierra Nevada Builders, L.L.C. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Nev. Case No. 25-50741) on August 13, 2025, with up to $50,000 in assets and $100,001 to $500,000 in liabilities. Judge Hilary L. Barnes presides over the case. Stephen R. Harris, Esq., at Harris Law Practice, LLC represents the Debtor as bankruptcy counsel. SIGNIA LTD: Male Excel Lawsuit May Proceed v. Owners, Affiliates ---------------------------------------------------------------- Magistrate Judge Kathryn A. Starnella of the United States District Court for the District of Colorado recommended that the defendants' motion to dismiss the case captioned as MALE EXCEL MEDICAL, P.A., a Florida professional association, and MALE EXCEL, INC., a Nevada corporation, Plaintiffs, v. ALFRED TREXLER, individually, JEFFREY FELL, individually, SULIT GROUP, LTD., a Colorado corporation, VERO INVESTMENT COMPANY, a Colorado corporation, JAFT VENTURES, LLC, a Colorado limited liability company, and NATIONAL RESEARCH AND POLLING GROUP, LTD., a Colorado limited liability company, Defendants, Case No. 24-cv-02539-RMR-KAS (D. Colo.) be denied without prejudice to the extent that they seek to dismiss this action pursuant to Federal Rule 12(b)(7) and denied as moot in all other respects. This matter is an alter ego/veil piercing action to enforce a judgment entered in favor of Plaintiffs against non-party judgment debtor Signia Marketing, Ltd., in the Eighth Judicial District Court in Clark County, Nevada, Case No. A-20-816167-B. In the Nevada Action, Plaintiffs Male Excel Medical, P.A., and Male Excel, Inc., had claimed they hired Signia to provide various sales and marketing services, but Signia had inflated sales figures and overcharged them. On Aug. 23, 2023, Plaintiffs obtained a judgment of more than $2 million against Signia and more than $1.1 million in costs and attorney fees. On Sept. 7, 2023, Signia filed for bankruptcy under Chapter 11 in United States Bankruptcy Court for the District of Colorado, Case No. 23-bk-14384-TBM (D. Colo. 2023). Through bankruptcy-related discovery, Plaintiffs claim they learned that "Signia was never a properly operated corporate entity with a personage separate and distinct from that of the Defendants" but was a "sham entity dominated and controlled by" Defendants as alter egos. Plaintiffs allege that Defendants Jeffrey Fell and Alfred Trexler own and control Signia through their shared ownership of Defendants Sulit Group, Ltd., which they each own 50%, and Vero Investment Company, which Defendant Fell owns outright. Sulit allegedly owns 80% of Signia, while Vero owns 20%. Finally, Defendants JAFT Ventures, LLC, and National Research and Polling Group, Ltd. are alleged "sister affiliates" of Signia which are also owned by Defendants Trexler and Fell through Defendants Sulit and Vero. Plaintiffs allege that Signia was not operated as a distinct entity but as an alter ego of its owners -- for example, it shared employees, an attorney, and an accounting firm with Defendants Sulit and Vero. They claim that Signia, Sulit, Vero, JAFT, and NRPB all purportedly operate out of the same N. Speer Blvd. address even though Signia has never rented space at that location. Plaintiffs allege that Signia engaged in various commercially unreasonable and dubious transactions (such as a lease agreement and revolving promissory notes) with the other Defendant entities and that Signia and Defendants commingled funds. Additionally, they claim that the Defendants maintain inadequate corporate records that are subject to change by Defendants Fell and Trexler even years later. In sum, Plaintiffs allege that Defendants have engaged in "rampant misuse of the corporate form" including lack of capitalization and disregard of the corporate form, all to frustrate Plaintiffs' rightful claim against Signia. Plaintiffs claim that the judgment they obtained in the Nevada Action cannot be satisfied with Signia's current assets and that Defendants now claim to be creditors based on the lease agreement and promissory notes it signed with them. They allege that the "intercompany relationships and transactions Fell and Trexler are responsible for appear to be fraudulent in nature or, at the very least, entered into for the specific purpose of reducing the appearance of Signia's profitability and draining its assets to evade future collection by Plaintiffs. They ask the Court to pierce the corporate veil and hold Defendants, and each of them, liable for the acts of the business entity. They also seek a declaratory judgment to hold Defendants and each of them, jointly and severally liable for the obligations of Signia, including the Nevada Judgment. On Feb. 8, 2024, after it was unable to receive an extension of time to file its Chapter 11 plan, Signia moved to dismiss the First Bankruptcy Case, but it indicated that it was likely that the Debtor would soon file a subsequent Subchapter V chapter 11 case after dismissal. On June 12, 2024, the Bankruptcy Court granted Signia's motion to dismiss and dismissed the First Bankruptcy Case. On June 20, 2024, Signia filed a new bankruptcy petition (In re Signia, Ltd. (Signia II), No. 24-13438-TBM (D. Colo. June 20, 2024)). Plaintiffs filed a Proof of Claim in the Pending Bankruptcy Case, asserting a claim of $4,469,565.48 against Signia. The Defendants also filed Proofs of Claim in the following amounts: (1) NRPG for $610,494.46; (2) JAFT for $533,839.79; (3) Sulit for $2,449,708.08; Trexler for $54,642.50; and Vero for $17,855.00. Defendants seek dismissal on two grounds: -- This Court lacks subject matter jurisdiction to entertain this action because the issue of whether Plaintiffs' alter ego/veil piercing claims belong to Signia's bankruptcy estate falls only within the purview of the Bankruptcy Court. As such, Defendants contend this matter should be dismissed pursuant to Fed. R. Civ. P. 12(b)(1). -- Plaintiffs' case ought to be dismissed pursuant to Fed. R. Civ. P. 12(b)(7) and Fed. R. Civ. P. 19 because Signia is an indispensable party to this litigation. As Defendants see it, without Signia's joinder, this case cannot proceed. Plaintiffs argue that this Court has jurisdiction over the alter ego/veil piercing claims because, under Colorado law, alter ego/veil piercing claims are not property of the debtor's estate. They further argue against 12(b)(7) dismissal because Plaintiffs' prior judgment against Signia does not make Signia a necessary or indispensable party to this action. Defendants ask the Court to dismiss the Complaint under Rule 12(b)(1) because, they argue, the Bankruptcy Court has exclusive jurisdiction over whether Plaintiffs' claims are property of Signia's bankruptcy estate -- that is, whether Signia can pierce its own corporate veil. On May 14, 2025, the Bankruptcy Court issued an Order granting Plaintiffs' motion to dismiss the Adversary Proceeding initiated by Signia. In Plaintiffs' motion, they argued that that their alter ego/veil piercing claims are not property of the bankruptcy estate. The Bankruptcy Court agreed, ruling that these claims are not Signia's property as a matter of Colorado law. Given the Bankruptcy Court's ruling that these claims do not belong to Signia's bankruptcy estate, the 12(b)(1) portion of Defendants' Motion is moot. As such, the Court recommends that Defendants' Motion be denied as moot to the extent premised on 12(b)(1). Defendants also seek dismissal pursuant to Fed. R. Civ. P. 12(b)(7) and Fed. R. Civ. P. 19, arguing that Signia is an indispensable party to this litigation. Thus, the only question that remains pending before this Court is whether Signia is a necessary and indispensable party, such that this case cannot not proceed in Signia's absence. Defendants do not argue that Signia is a required party pursuant to Rule 19(a)(1)(A). The Court nonetheless finds that Signia is not a required party under this subpart of the Rule because the Court can afford complete relief to Plaintiffs against Defendants in the absence of Signia. According to Judge Starnella, "Signia's absence from the instant case would not prevent the district court from according complete relief among the parties because Plaintiffs' action focuses solely on the liability of the alleged alter-ego Defendants, and Signia's absence would not prevent Plaintiffs from receiving their requested relief. If such liability against Defendants is established, the Court cannot find any adverse impact upon Signia by determining that Defendants are responsible for its debt." To satisfy Rule 19(a)(1)(B)(i), the Court must find that Signia claims an interest relating to the subject of this action and is so situated that disposing of the action in Signia's absence may, as a practical matter, impair or impede its ability to protect that interest. Defendants assert that Signia is a necessary party under Rule 19(a)(1)(B)(i) because it claims an interest in the alter ego/veil piercing claims brought by Plaintiffs in this action. Specifically, Defendants claim that proceeding in this case without Signia will impede Signia's ability to protect its legitimate interest in Plaintiffs' claims. The Court finds Defendants have not shown that Signia claims an interest relating to the subject of this action. Defendants further argue that Signia's interests in the orderly administration of its bankruptcy estate will be impaired by allowing this action to proceed absent Signia. Defendants assert, for instance, that a judgment against the Defendants could result in potential indemnification claims, among others, that would augment the total amount of claims at issue in the bankruptcy estate" and, if this case proceeds, that all Signia's other creditors could follow suit and bring similar claims. The Court also finds this argument unavailing. Judge Starnella explains, "As Plaintiffs point out, there are no other creditors who have an interest in the underlying claims -- these claims belong to Plaintiffs and only Plaintiffs, arising from the Nevada Action. The alter-ego/veil piercing claims brought by Plaintiffs specifically relate to Signia's alleged abuse of the corporate form with respect to Defendants purportedly shielding assets to prevent Plaintiffs' from recovering against Signia. Signia is not a party here and will not be bound by a judgment rendered by this Court in this action. Signia's liability has already been determined in the Nevada Action, and that liability will remain regardless of the outcome in this litigation. Therefore, the Court finds that Defendants fail to satisfy Rule 19(a)(1)(B)(i)." Because the Court finds that Signia is not a necessary party under Rule 19(a), it need not inquire whether dismissal is necessary pursuant to Rule 19(b). Upon consideration of Rule 19(a), the Court recommends finding that Signia is not a necessary party. Defendants have not shown that: (1) complete relief cannot be accorded among Plaintiffs and Defendants in Signia's absence; or (2) Signia claims an interest relating to the subject of the action and adjudicating the action in Signia's absence may: (i) impair or impede the Signia's ability to protect its interests or (ii) leave Defendants with a substantial risk of incurring double, multiple, or otherwise inconsistent obligations by reason of the claimed interest. Because Signia is not necessary, it cannot be indispensable. Accordingly, the Court finds no basis to dismiss pursuant to Rule 12(b)(7) as Defendants have failed to show that Signia is a necessary party under Rule 19. A copy of the Court's Order dated August 13, 2025, is available at https://urlcurt.com/u?l=LAMgbj About Signia, Ltd. SIGNIA provides the full spectrum of customer service and care from order and payment processing to customer inquiries and timely follow-up to Tier 1 support. Signia, Ltd., filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. 24-13438) on June 20, 2024, listing $507,431 in assets and $10,081,009 in liabilities. The petition was signed by Jeffrey Fell as CEO. Judge Thomas B. Mcnamara presides over the case. David V. Wadsworth, Esq. at WADSWORTH GARBER WARNER CONRARDY, P.C. represents the Debtor as counsel. SK INDUSTRIES: Gets Extension to Access Cash Collateral ------------------------------------------------------- SK Industries, LLC received another extension from the U.S. Bankruptcy Court for the Northern District of Florida, Pensacola Division, to use cash collateral. The court issued its fourth interim order authorizing the Debtor to use cash collateral to pay its expenses per the budget, with up to 10% variance per line item. As protection, Regions Bank, the Debtor's lender, was granted post-petition replacement liens on all personal property of the Debtor, including accounts receivable. In addition, the Debtor was ordered to make a monthly payment of $15,000 to Regions Bank and to keep its property insured in accordance with the terms of their loan agreement. Regions Bank is represented by: Dana L. Robbins-Boehner, Esq. Burr & Forman, LLP 201 North Franklin Street, Suite 3200 Tampa, FL 33602 (813) 221-2626 (voice) (813) 221-7335 (fax) drobbins-boehner@burr.com About SK Industries LLC SK Industries, LLC, doing business as Pensacola Athletic Center, is a comprehensive fitness facility offering 24-hour gym access, personal training, childcare services, tennis courts, swimming pools, and group fitness classes. The family-owned business has been serving the Pensacola community since 1985, with a focus on health and wellness for individuals of all ages. SK Industries filed Chapter 11 petition (Bankr. N.D. Fla. Case No. 25-30138) on February 18, 2025, listing between $1 million and $10 million in both assets and liabilities. Judge Jerry C. Oldshue, Jr. oversees the case. The Debtor is represented by Byron W. Wright III, Esq., at Bruner Wright, P.A. SKYX PLATFORMS: Fiscal Q2 Net Loss Rises to $8.8M on $23.1M Revenue ------------------------------------------------------------------- SKYX Platforms Corp. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $8.8 million for the three months ended June 30, 2025, compared to a net loss of $7.5 million for the three months ended June 30, 2024. Revenue for the three months ended June 30, 2025, was $23.1 million compared to a revenue of $21.4 million for the same period in 2024. For the six months ended June 30, 2025, the Company reported a net loss of $17.9 million, compared to a net loss of $17.1 million for the same period in 2024. Revenue for the six months ended June 30, 2025 was $43.2 million compared to a revenue of $40.4 million for the same period in 2024. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/yh5en996 About SKYX Platforms Corp. Headquartered in Pompano Beach, Florida, SKYX Platforms Corp. develops advanced platform technologies focused on enhancing safety, quality, and ease of use in homes and buildings. With nearly 100 patents and pending applications, the Company's products are designed to improve safety and lifestyle in residential and commercial spaces. In 2023, Sky expanded by acquiring an online retailer specializing in home lighting, ceiling fans, and furnishings. The Company's technologies enable quick and safe installation of light fixtures and ceiling fans without the need to handle hazardous wires. In its report dated March 24, 2025, the Company's auditor, M&K CPAS, PLLC, issued a "going concern" qualification attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing the Company's accumulated deficit, negative cash flows from operations, and recurring net losses, which raise substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2024, SKYX reported total assets of $65.89 million, total liabilities of $56.83 million, and total equity of $4.05 million. As of June 30, 2025, the Company had $64.3 million in total assets, $58.7 million in total liabilities, and $689,939 in total stockholders' equity. SMITH ENVIRONMENTAL: Hires Messari Group LTD as Accountant ---------------------------------------------------------- Smith Environmental and Engineering, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Colorado to employ Messari Group LTD as accountant. The firm will assist the Debtor in preparing its monthly operating reports, preparing its tax returns and tax-related documents and schedules, and providing general accounting and bookkeeping services to the Debtor. The firm will be paid at the rate of $300 per hour. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Polk 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: Gina M. Polk Messari Group LTD 1180 Village Ridge Point Monument, CO 80132 Telephone: (719) 425-8322 Email: gina.polk@messarigroup.com About Smith Environmental and Engineering, Inc. Smith Environmental and Engineering, Inc. is a woman-owned consulting firm that provides comprehensive environmental services, specializing in ecological sciences, environmental engineering, and construction. With over 24 years of experience, the company offers tailored solutions for environmental management, hazardous materials, and cultural resource projects across various industries. Smith Environmental and Engineering sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 25-11042) on February 28, 2025. In its petition, the Debtor reported total assets of $1,486,401 and total liabilities of $2,975,603. Judge Michael E. Romero handles the case. The Debtor is represented by David Warner, Esq. SOLAR AVENUE: Brian Shapiro Named Subchapter V Trustee ------------------------------------------------------ The U.S. Trustee for Region 17 appointed Brian Shapiro as Subchapter V trustee for Solar Avenue Las Vegas, LLC. Mr. Shapiro will be paid an hourly fee of $650 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Shapiro declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Brian Shapiro 510 S. 8th Street Las Vegas, NV 89101 Phone: (702) 386-8600 Email: brian@trusteeshapiro.com About Solar Avenue Las Vegas Solar Avenue Las Vegas, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Nev. Case No. 25-14686) on August 14, 2025, with $100,001 to $500,000 in assets and $1,000,001 to $10 million in liabilities. Judge August B. Landis presides over the case. SOLAR AVENUE: Seeks Subchapter V Bankruptcy in Nevada ----------------------------------------------------- Solar Avenue Las Vegas LLC has filed for Chapter 11 bankruptcy protection in the District of Nevada on August 14, 2025, electing to proceed under Subchapter V as a small business debtor. Court papers list assets of $100,001 to $500,000 against liabilities between $1 million and $10 million. The company expects funds will be available for unsecured creditors, with Assured Lender Services Inc. and Velocity Commercial holding the largest claims at $2.1 million each. Solar Avenue reports between one and 49 creditors. The petition was signed by manager and authorized representative Daryle J. Rutherford. About Solar Avenue Las Vegas LLC Solar Avenue Las Vegas LLC is a limited liability company. Solar Avenue Las Vegas LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-14686) on August 14, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge August B. Landis handles the case. The Debtor is represented by Daryle J. Rutherford, Esq. SPARC ENTERPRISES: Section 341(a) Meeting of Creditors on Sept. 10 ------------------------------------------------------------------ Sparc Enterprises Inc., headquartered in Mountlake Terrace, Washington, has filed for Chapter 11 bankruptcy in the Western District of Washington on August 13, 2025. The company disclosed assets of less than $50,000 and liabilities between $100,001 and $500,000. The Company opted to proceed under Subchapter V, allowing the business to pursue a streamlined reorganization process available to small companies under the statutory debt threshold. A meeting of creditors, filed by Kathryn Evans on behalf of United States Trustee, under Section 341(a) to be held on September 10, 2025 at 12:00 PM via Telephonic Creditors Meeting. About Sparc Enterprises Inc. Sparc Enterprises, Inc. is a company operating in the management of companies and enterprises sector (NAICS 5511). Spar Enterprises Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-12239) on August 13, 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 Christopher M. Alston handles the case. The Debtor is represented by Jennifer L. Neeleman, Esq. at Christopher M Alston Law Group, P.C. SPIRIT AIRLINES: Borrows $275MM to Ensure Card Payments Continuity ------------------------------------------------------------------ Steven Church of Bloomberg News reports that Spirit Airlines Inc. has secured $275 million through a revolving credit facility to ease liquidity pressures and avoid disruption to its credit card payment processing. According to a regulatory filing, at least $50 million of the funds will be reserved to satisfy requirements from U.S. Bank, which handles Spirit's credit card transactions. The bank had warned it would terminate its processing agreement at 2025's end without additional collateral. About Spirit Airlines Spirit Airlines, Inc. (SAVE) is a low-fare carrier committed to delivering the best value in the sky by offering an enhanced travel experience with flexible, affordable options. Spirit serves destinations throughout the United States, Latin America and the Caribbean with its Fit Fleet, one of the youngest and most fuel-efficient fleets in the U.S. On the Web: http://wwww.spirit.com/ Spirit Airlines and its affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 24-11988) on Nov. 18, 2024, after reaching terms of a pre-arranged plan with bondholders. At the time of the filing, Spirit Airlines reported $1 billion to $10 billion in both assets and liabilities. Judge Sean H. Lane oversees the case. The Debtors tapped Davis Polk & Wardwell, LLP as legal counsel; Alvarez & Marsal North America, LLC, as financial advisor; and Perella Weinberg Partners LP as investment banker. Epiq Corporate Restructuring, LLC, is the claims agent. Paul Hastings, LLP and Ducera Partners, LLC serve as legal counsel for the Ad Hoc Group of Convertible Noteholders. Akin Gump Strauss Hauer & Feld, LLP and Evercore Group LLC represent the Ad Hoc Group of Senior Secured Noteholders. The official committee of unsecured creditors retained Willkie Farr & Gallagher LLP as counsel. Citigroup Global Markets, Inc., is serving as financial advisor and Latham & Watkins LLP is serving as legal counsel to Frontier. SRQ TAXI: Drivers' Breach of Contract Suit v. SMAA Tossed --------------------------------------------------------- In the appeal styled TRAZIUS AVRISSAINT, GERALD CHERY, EDDY CHARLES, CLIVE LLOYD BUCKLEY, BILLY NELSON, et al., Plaintiffs-Appellants, versus SARASOTA MANATEE AIRPORT AUTHORITY, Defendant-Appellee, the United States Court of Appeals for the Eleventh Circuit affirmed the determinations of the United States District Court for the Middle District of Florida and the United States Bankruptcy Court for the Middle District of Florida that drivers lack standing to sue as intended thirty-party beneficiaries of Sarasota Manatee Airport Authority's contract with SRQ Taxi Management, LLC. Starting in 1982, Diplomat Taxi contracted with the SMAA to operate a taxi service at Sarasota-Bradenton International Airport. In 2009, the SMAA and Diplomat Taxi entered their most recent agreement for a term of five years with options for renewal. The agreement provides Diplomat Taxi with the non-exclusive right to conduct a combination metered taxicab and non-metered limousine operation for the purpose of transporting airline passengers and baggage from the Terminal. This agreement worked for several years. But in 2015, Uber and other transportation network companies (TNCs) began operating at the airport without an agreement or permit from the SMAA. In 2016, Diplomat Taxi assigned its contract to SRQ Taxi. During that year, SMAA gave TNCs, including Uber, reserved parking spaces in the short-term parking lot for free and added signs directing passengers to the TNCs pickup areas. In 2017, SRQ Taxi filed for Chapter 11 bankruptcy. This is an appeal from an adversary proceeding during SRQ Taxi's bankruptcy proceedings. SRQ Taxi and 22 taxi drivers sued the SMAA for breach of contract. The bankruptcy judge found the SMAA breached its contract with SRQ Taxi, but that SRQ Taxi failed to prove damages. The bankruptcy court also found that the drivers lacked standing to enforce the contract. After the district court affirmed the bankruptcy court's decision, the drivers appealed to this court, arguing that they are the intended third-party beneficiaries of the agreement between SRQ and SMAA and thus have standing. According to the Circuit Judges, "Here, none of the evidence suggests that both SRQ Taxi and the SMAA intended for the agreement to benefit the drivers. SRQ Taxi provided testimony from Diplomat Taxi's owner that the agreement was for the benefit of the drivers, the company, the SMAA customers, and the SMAA. But there is no evidence that the SMAA intended for the agreement to benefit the drivers. Instead, the agreement's recitals only state that the SMAA 'wishes to assure that safe, high quality and efficient metered taxicab and non-metered limousine service is available at the SMAA to meet all arriving flights for the benefit and convenience of the traveling public.' Because there is no clear evidence that both parties intended to benefit the drivers, the drivers may not sue for breach of the contract as third-party beneficiaries." They hold, "Because we find no error with the district court's and the bankruptcy court's determinations that the drivers lack standing, we affirm." A copy of the Court's Opinion dated August 18, 2025, is available at https://urlcurt.com/u?l=bcpcWy About SRQ Taxi Management SRQ Taxi Management, LLC filed a Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No. 17-07782) on Aug. 31, 2017. Cullan F. Meathe, manager, signed the petition. At the time of filing, the Debtor estimated $0 to $50,000 in assets and $100,000 to $500,000 in estimated liabilities. Judge Michael G. Williamson presides over the case. Stichter, Riedel, Blain & Postler, PA serves as the Debtor's bankruptcy and special counsel. SSS PROPERTIES: Seeks Subchapter V Bankruptcy in Ohio ----------------------------------------------------- SSS Properties LLC filed for Chapter 11 bankruptcy under Subchapter V in the Northern District of Ohio on August 12, 2025. The company reported assets of $100,001 to $500,000 and liabilities of less than $50,000. The petition, signed by Managing Member Stephanie Griffin, states the business has fewer than 50 creditors and expects funds to be available for distribution to unsecured creditors. About SSS Properties LLC SSS Properties LLC is a a Cleveland-based property company. SSS Properties LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 25-13457) on August 12, 2025. In its petition, the Debtor reports estimated assets between $100,000 and $500,000 and estimated liabilities up to $50,000. Honorable Bankruptcy Judge Jessica E. Price Smith handles the case. The Debtor is represented by Glenn E. Forbes, Esq. at FORBES LAW LLC. STERNE WOOD: To Sell San Diego Property to ABI Investments ---------------------------------------------------------- Sterne Wood LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of California, to sell Property, free and clear of liens, claims, interests, and encumbrances. The Debtor's Property is located at 3967-3969 8th Avenue, San Diego, CA 92103. The Debtor and the Buyer, ABI Investments LLC, signed a Purchase Agreement on August 15, 2025, which indicate that the purchase price of the Property is $1,600,000.00. The Property will be sold as-is, where-is and without any representations and warranties. The Sale is subject to court approval. The Debtor believes that the sale price represents fair value for the Property. The Debtor is a real estate development company that owns three contiguous parcels in the Hillcrest neighborhood located at 3967-3969 8th Avenue, San Diego, CA, a 5-unit apartment building, (2) 3973 8th Avenue, San Diego, CA, a single-family residence, and (3) 3975-3977 8th Avenue, San Diego CA, a duplex. The Debtor hires Marcus & Millichap Real Estate Investment Services as real estate broker, which, began listing for sale the Properties as part of a four-parcel assemblage that includes the Debtor's Properties, and a fourth parcel owned by another party (3983-3989 8th Avenue), which is small commercial building located on the corner of 8th Avenue and Washington St. The Debtor requests court approval to pay all ordinary closing costs including the broker commission, as well as the liens of the San Diego County Tax Collector and Innovative Capital REIT, LLC through escrow. The Debtor does not believe that the sale will result in any adverse tax consequences. The Sale Price is the highest and best offer the Debtor has received for the Property after an extensive marketing effort. The Debtor believes that the Sale is in the best interests of all interested parties. About Sterne Wood LLC Sterne Wood, LLC is a limited liability company in San Diego, Calif. Sterne Wood sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Calif. Case No. 25-01945) on May 13, 2025. In its petition, the Debtor reported up to $50,000 in assets and between $1 million and $10 million in liabilities. Judge J. Barrett Marum oversees the case. The Debtor is represented by Donald Reid, Esq., at the Law Office of Donald W. Reid. STOKES & STOKES: Lender Seeks to Prohibit Cash Collateral Access ---------------------------------------------------------------- Metropolitan Tower Life Insurance Company, as serviced by Fay Servicing, LLC, asked the U.S. Bankruptcy Court for the Eastern District of Pennsylvania, Philadelphia Division, to prohibit Stokes and Stokes Properties, LLC from using cash collateral. Metropolitan Tower holds a valid, first-priority security interest in the Debtor's cash collateral, including cash, deposit accounts, accounts receivable, rents, and proceeds of inventory, as defined under 11 U.S.C. section 363(a). Despite this, the Debtor has been using the cash collateral without consent and without court authorization, in violation of section 363(c)(2). Furthermore, Metropolitan Tower claimed it has not received adequate protection for its interest, as required under section 363(e). The Debtor, which filed for Chapter 11 Subchapter V relief on June 3, has failed to file Schedules I and J as required under 11 U.S.C. section 1116(3), though other schedules were submitted on July 1. Metropolitan Tower argued that continued unauthorized use of the cash collateral is causing immediate and irreparable harm to its secured interest and prejudices its rights under the Bankruptcy Code. Metropolitan Tower sought an order prohibiting further use of cash collateral and directing the Debtor to segregate all cash collateral in a separate debtor-in-possession account and to provide a full accounting. About Stokes & Stokes Properties Stokes & Stokes Properties, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-12226) on June 3, 2025, with up to $50,000 in assets and liabilities. Judge Ashely M. Chan presides over the case. Demetrius J. Parrish, Esq., at The Law Offices of Demetrius J. Parrish represents the Debtor as bankruptcy counsel. Metropolitan Tower Life Insurance Company, as serviced by Fay Servicing, LLC, is represented by: Mark A. Cronin, Esq. McCalla Raymer Leibert Pierce, LLP 325 Chestnut Street, Suite 725 Philadelphia, PA 19106 Phone: (215) 402-6989 mark.cronin@mccalla.com SUMMIT HARD: Gets Interim OK to Use Cash Collateral --------------------------------------------------- Summit Hard Cider and Perry Company, LLC received interim approval from the U.S. Bankruptcy Court for the District of Colorado to use cash collateral. The interim order authorized the Debtor to use cash Collateral, which consists of proceeds of its bank accounts as of the petition date and its pre-bankruptcy receivables pursuant to the budget. As adequate protection of their secured interest, the U.S. Small Business Administration and Colorado Enterprise Fund, Inc. will receive monthly payments of $447.98 and $7.76, respectively. Payments will start on the 15th day of the month following final approval of the Debtor's bid to use cash collateral. The automatic stay provided for under Section 362 of the Bankruptcy Code was vacated to the limited extent to allow both secured creditors to accept payments on their secured debt. The portion of the cash collateral retained by the Debtor must be used by the Debtor only for ordinary and necessary operating expenses and administrative expenses. Specifically, operating expenses set forth in the budget may be paid from cash on hand and the cash proceeds of sales, according to the interim order. As further adequate protection, any creditor with a security interest in the cash collateral will be granted a replacement security interest and lien on all categories of collateral on which such creditor held a perfected security interest or lien immediately prior to the petition date. The final hearing is set for September 10. The Debtor owes several creditors, totaling over $1 million, including secured debts to the Colorado Department of Revenue, Larimer County Treasurer, City of Fort Collins, Colorado Enterprise Fund and SBA, with remaining creditors being largely undersecured or unsecured. Colorado Enterprise Fund holds the senior secured interest in all of the Debtor's business assets, while the SBA holds a second-priority lien on a broad range of tangible and intangible property. The Debtor asserts that continued operations are essential for reorganization and has no alternative source of financing. It plans to use a $15,102 receivable from High Country Beverage to become current on tax obligations. A liquidation analysis estimates total tangible assets at $160,682, indicating that only Colorado Enterprise Fund holds a fully secured position. About Summit Hard Cider and Perry Company Summit Hard Cider and Perry Company LLC, operating in Fort Collins, Colorado, produces and sells craft hard ciders and perries, and operates a taproom and pub under the Scrumpy's brand, offering beverages and food to consumers. The Company also collects local fruit through a mobile juicing trailer to create both alcoholic and non-alcoholic drinks. Summit Hard Cider and Perry Company sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 25-15079) on August 13, 2025. In its petition, the Debtor reports total assets of $164,233 and total liabilities of $2,663,400. Honorable Bankruptcy Judge Joseph G. Rosania Jr. handles the case. The Debtor is represented by Payton L. Buhler, Esq., at BELL, GOULD, LINDER & SCOTT P.C. SUNRISE DETOX: Section 341(a) Meeting of Creditors on September 18 ------------------------------------------------------------------ On August 13, 2025, Sunrise Detox Brentwood LLC filed for Chapter 11 bankruptcy protection, reporting assets between $50 million and $100 million and liabilities ranging from $10 million to $50 million. A meeting of creditors under Section 341(a) to be held on September 18, 2025 at 09:00 AM by TELEPHONE. About Sunrise Detox Brentwood LLC Sunrise Detox Brentwood LLC operates a substance abuse detoxification facility in Brentwood, New York, providing medical detoxification services for individuals with substance use disorders. Sunrise Detox Brentwood LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-19346) on August 13, 2025. In its petition, the Debtor reports estimated assets between $50 million and $100 million and estimated liabilities between $10 million and $50 million. The Debtor is represented by Bradley S. Shraiberg, Esq. at Shraiberg Page PA. SURVWEST LLC: Trustee Taps Dickensheet & Associates as Auctioneer ----------------------------------------------------------------- Ken Yager, the Trustee for Survwest, LLC seeks approval from the U.S. Bankruptcy Court for the District of Colorado to employ Dickensheet & Associates, Inc. as auctioneer. The firm will market and auction the following properties: a. 2009 Ford F650 VIN 3FRNF65B59V188894 (the "2009 Ford"); b. 2007 Ford F650 VIN 3FRNF65E97V438757 (the 2007 Ford"); c. 2011 Ford F650 VIN 3FRNF6FJ1BV121477 (the "2011 Ford"); d. 2008 Chevrolet 3500 1GBJC33K18F180970 (the "2008 Chevy"); The firm will be paid 10 percent buyer's premium (cash or cash equivalent) to be charged to the successful bidder on the sale of titled vehicles. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. As disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Christine Dickensheet Dickensheet & Associates, Inc. 1501 W Wesley Avenue, Denver, CO 80223. Telephone: (303) 934-8322 About Survwest, LLC SurvWest LLC, formerly known as SurvTech Solutions LLC, is a diversified engineering firm specializing in surveying and mapping; subsurface utility engineering (SUE); and utility coordination for clients across the United States. SurvWest filed Chapter 11 petition (Bankr. D. Colo. Case No. 24-15214) on September 6, 2024, with total assets of $7,301,456 and total liabilities of $9,447,402. Mathew Barr, president, signed the petition. Judge Thomas B. Mcnamara handles the case. David Wadsworth, Esq., at Wadsworth Garber Warner Conrardy, P.C. is the Debtor's legal counsel. TBK Bank is represented by: Duncan E. Barber, Esq. Otteson Shapiro, LLP 7979 E. Tufts Avenue, Suite 1600 Denver, CO 80237 Tel: (720) 488-0220 Fax: (720) 488-7711 E-mail: dbarber@os.law SYNAPSE FINANCIAL: CFPB Sues to Recover Consumers Lost Funds ------------------------------------------------------------ Alex Wolf of Bloomberg Law reports that the Consumer Financial Protection Bureau has sued the bankruptcy estate of Synapse Financial Technologies Inc., alleging the company's poor recordkeeping left consumers unable to recover funds. Filed August 21, 2025, in the U.S. Bankruptcy Court for the Central District of California, the complaint follows a notice from the Chapter 11 trustee indicating litigation with the CFPB was anticipated. The trustee also said settlement talks were underway for a stipulated judgment with nominal penalties, the report states. About Synapse Financial Technologies Headquartered in San Francisco, California, Synapse Financial Technologies, Inc. -- https://synapsefi.com/ -- is a banking-as-a-service platform for embedded finance solutions worldwide. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-10646) on April 22, 2024. In the petition signed by Sankaet Pathak, chief executive officer, the Debtor disclosed up to $50 million in assets and liabilities. Judge Martin R. Barash oversees the case. Ron Bender, Esq., at Levene, Neale, Bender, Yoo & Golubchik L.L.P., is the Debtor's legal counsel. TENNESSEE CREDIT: Kimberly Strong Named Subchapter V Trustee ------------------------------------------------------------ The Acting U.S. Trustee for Region 5 appointed Kimberly Strong, audit director at Harper, Rains, Knight & Company, P.A., as Subchapter V trustee for Tennessee Credit Management, Inc. Ms. Strong will be paid an hourly fee of $250 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Strong declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Kimberly Strong Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Pwky, Suite 100 Ridgeland, MS 39157 Phone: (601) 605-0542 Email: kstrong@hrkcpa.com About Tennessee Credit Management Tennessee Credit Management, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Miss. Case No. 25-12603) on August 14, 2025, with $500,001 to $1 million in assets and liabilities. Judge Selene D. Maddox presides over the case. Christopher J. Steiskal, Sr., Esq. represents the Debtor as legal counsel. TLC MEDICAL: Court Extends Cash Collateral Access to Oct. 21 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Florida issued its eighth interim order allowing TLC Medical Group, Inc. to continue using cash collateral. The order signed by Judge Mindy Mora approved the Debtor's interim use of cash collateral from Aug. 12 to Oct. 21 to pay the expenses set forth in its budget. The budget shows $415,979.93 in total expenses from August to December. The Debtor is prohibited from using cash collateral for purposes outside of the approved budget. As adequate protection for any diminution in the value of their collateral, secured creditors will be granted replacement liens on the Debtor's assets, subordinate only to U.S. Trustee fees and any Clerk's filing fees. The replacement liens do not apply to any causes of action. The next hearing is scheduled for October 21. The Debtor has several secured creditors with blanket liens on its assets. The creditors are the U.S. Small Business Administration ($366,752), SouthState Bank ($49,733.73), Kapitus, LLC ($139,500), Banker's Health Care Group Association ($326,668), LG Funding, LLC ($48,950) and QFS Capital, LLC ($183,239). About TLC Medical Group Inc. TLC Medical Group, Inc. provides diagnosis and treatment of heart and circulatory disorders. It is based in Port St. Lucie, Fla. TLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-21588) on November 4, 2024, with total assets of $1,905,679 and total liabilities of $2,093,600. Anthony Lewis, president of TLC, signed the petition. Judge Mindy A. Mora handles the case. Susan D. Lasky, Esq., serves as the Debtor's legal counsel. TOGETHER GOOD: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Together Good Deeds IV, LLC 7200 W. University Drive, Ste. 300 McKinney, TX 75071 Business Description: Together Good Deeds IV, LLC, based in Texas, provides professional architectural, engineering, and related consulting services under NAICS code 5413. Chapter 11 Petition Date: August 22, 2025 Court: United States Bankruptcy Court Northern District of Texas Case No.: 25-33215 Judge: Hon. Scott W Everett Debtor's Counsel: Vickie L. Driver, Esq. DRIVER STEPHENSON, PLLC 13155 Noel Rd., Ste. 900 Dallas, TX 75240-6882 Tel: (214) 910-9558 E-mail: vickie@driversteplaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Anthony Lesmes as manager and sole member. A list of the Debtor's 20 largest unsecured creditors was not provided alongside the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/KFMJP6A/Together_Good_Deeds_IV_LLC__txnbke-25-33215__0001.0.pdf?mcid=tGE4TAMA TYLER 2 CONSTRUCTION: Gets Extension to Access Cash Collateral -------------------------------------------------------------- Tyler 2 Construction, Inc. received second interim approval from the U.S. Bankruptcy Court for the Western District of North Carolina to use cash collateral. The second interim order authorized the Debtor to use cash collateral from August 6 to September 9 to pay the expenses set forth in its budget, with a 10% variance allowed. The Debtor projects total operational expenses of $789,336 for August; $881,081 for September; $836,907 for October; and $838,808 for November. TowneBank, the Debtor's lender, may have an interest in the cash collateral. As adequate protection, TowneBank will receive payment of $4,000 from the Debtor. The interim order approved the amounts shown in the budget for payment of allowed fees and expenses incurred by the Debtor's professionals as carve-outs from cash collateral. The next hearing is scheduled for September 9. TowneBank, as lender, is represented by: Pamela P. Keenan, Esq. Kirschbaum, Nanney, Keenan & Griffin, P.A P.O. Box 19766 Raleigh, NC 27619-9766 Telephone: (919) 848-0420 Facsimile: (919) 848-8755 pkeenan@kirschlaw.com About Tyler 2 Construction Inc. Tyler 2 Construction, Inc. is a general contractor based in Charlotte, North Carolina. The Company provides construction management and renovation services across sectors including office, healthcare, retail, and light industrial. Tyler 2 Construction sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.N.C. Case No. 25-30715) on July 9, 2025. In its petition, the Debtor reported total assets of $9,819,766 and total liabilities of $5,762,398. Judge Ashley Austin Edwards handles the case. Richard S. Wright, Esq., at Moon Wright & Houston, PLLC is the Debtor's legal counsel. ULTIMATE PAVERS: Seeks Subchapter V Bankruptcy in Florida --------------------------------------------------------- Ultimate Pavers Inc. has filed for Chapter 11 bankruptcy in the Middle District of Florida (Case No. 25-05696). The company listed assets and liabilities each between $100,001 and $500,000 and reported fewer than 50 creditors. It is pursuing its case under Subchapter V of Chapter 11 as a small business debtor. Eduardo Fernandez, the company's sole owner, has also filed for bankruptcy in the same district. About Ultimate Pavers Inc. Ultimate Pavers Inc. is a Tampa, Florida-based construction company specializing in paving services (NAICS 2389). Ultimate Pavers Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-05696) on August 12, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100,000 and $500,000 each. Honorable Bankruptcy Judge Catherine Peek Mcewen handles the case. The Debtor is represented by Andrew J. Wit, Esq. at Jennis Morse. UPLIFT RX: Trustee Drops RICO Claims Against BakerHostetler ----------------------------------------------------------- Hilary Russ of Law360 Bankruptcy Authority reports that the trustee overseeing the Alliance Health Liquidating Trust has agreed to drop the final two civil RICO claims against BakerHostetler in a case linked to the law firm's 2017 work for a bankrupt pharmacy company. About Uplift RX Uplift Rx, LLC, owned and operated a network of pharmacies across the United States that specialized in providing prescriptions to patients with chronic health conditions, including diabetes. Uplift Rx, along with other affiliated entities together make up the Alliance Healthcare family, a group of privately held companies headquartered in South Jordan, Utah. The Alliance network consists of 20 pharmacies across the country, including three pharmacies in Texas. Since 2006, the Alliance Healthcare companies have been working to improve the well-being of those with chronic health conditions such as diabetes. Uplift Rx, LLC and certain of its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 17-32186) on April 7 and 8, 2017. In the petitions signed by CEO Jeffrey C. Smith, the Debtors estimated assets of less than $1 million and liabilities of $50 million to $100 million. The cases were assigned to Judge Marvin Isgur. The Debtors tapped Baker & Hostetler LLP as legal counsel. On May 3, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. The committee tapped Fox Rothschild LLP as its legal counsel. In May 2017, Ronald L. Glass was appointed as the Debtors' Chapter 11 trustee. The trustee hired BakerHostetler LLP as his legal counsel, and GlassRatner Advisory & Capital Group LLC as his financial advisor. The U.S. Trustee for Region 7 on May 3, 2019, appointed five creditors to serve on an official committee of unsecured creditors in the Chapter 11 cases of Uplift Rx, LLC, and its affiliates. Foley & Lardner LLP, replacing Fox Rothschild LLP, served as counsel to the committee. FTI Consulting, Inc., served as its financial advisor and forensic accountant. VENETIAN NAIL: Seeks Subchapter V Bankruptcy in Florida ------------------------------------------------------- Venetian Nail Spa MMP, LLC filed for Chapter 11 bankruptcy protection on August 13, 2025, in the Southern District of Florida. The company submitted its case under Subchapter V of Chapter 11 as a small business debtor, signaling plans to restructure while remaining operational. According to court filings, the business reported liabilities between $500,001 and $1 million against assets valued between $0 and $50,000. Notable creditors include Cadence Bank ($276,000), Headway Capital LLC ($82,000), and Fora Financial Asset Securitization 2021 ($80,000). About Venetian Nail Spa MMP LLC Venetian Nail Spa MMP LLC is a nail salon operating in Miami, Florida. It ffers nail care services including manicures, pedicures, and related spa treatments to customers in the Miami area. Venetian Nail Spa MMP LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-19379) on August 13, 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 Laurel M. Isicoff handles the case. The Debtor is represented by Aubrey Rudd Esq. VERRICA PHARMACEUTICALS: Swings to $204K Net Income in Fiscal Q2 ---------------------------------------------------------------- Verrica Pharmaceuticals Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net income of $204 thousand for the three months ended June 30, 2025, compared to a net loss of $17.2 million for the three months ended June 30, 2024. Revenue for the three months ended June 30, 2025, was $12.7 million, compared to a revenue of $5.2 million for the same period in 2024. For the six months ended June 30, 2025, the Company reported a net loss of $9.5 million, compared to a net loss of $37.5 million for the same period in 2024. Revenue for the six months ended June 30, 2025 was $16.1 million, compared to a revenue of $8.1 million for the same period in 2024. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/bpahhbvj About Verrica Pharmaceuticals West Chester, Pa.-based Verrica Pharmaceuticals Inc. is a dermatology therapeutics company developing and selling medications for skin diseases requiring medical intervention. Philadelphia, Pennsylvania-based KPMG LLP, the Company's auditor since 2008, issued a "going concern" qualification in its report dated March 11, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has incurred substantial operating losses since inception and has negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. As of December 31, 2024, the Company had $54.1 million in total assets, $63.9 million in total liabilities, and total stockholders' deficit of $9.9 million. As of June 30, 2025, the Company had $39.1 million in total assets, $56.6 million in total liabilities, and $17.5 million in total stockholders' deficit. WELCOME GROUP: Seeks to Use Cash Collateral ------------------------------------------- Welcome Group 2, LLC and its affiliates asked the U.S. Bankruptcy Court for the Southern District of Ohio, Eastern Division, for authority to continue using cash collateral belonging to RSS WFCM2019-C50 – OH WG2, LLC, through December 15. The Debtors originally filed for Chapter 11 bankruptcy on September 1, 2023, intending to reorganize their financial obligations while continuing business operations as debtors-in-possession under 11 U.S.C. Sections 1107(a) and 1108. Since filing, the Debtors have received prior court authorization to use cash collateral through a series of interim and final orders, with the current authorization expiring September 15. The court's previous final order dated October 31, 2023, and extended multiple times thereafter, permitted the Debtors to use cash collateral to pay operational expenses in line with the budget. In exchange, the Debtors were required to make monthly adequate protection payments of $36,000 to the secured lender, along with scheduled Small Business Administration loan payments. The Debtors have complied with all obligations and are now requesting the court's continued authorization to use cash collateral under substantially similar terms as the previous orders. The Debtors argued that continuation of cash collateral usage is essential to fund day-to-day operational expenses, including employee wages, maintenance, and hotel operations. Without access to these funds, business operations would cease, resulting in the loss of jobs and a severe drop in business value. Finally, the Debtors requested that if any objections are filed, a hearing be scheduled before September 15 to prevent any gap in authorization. About Welcome Group 2 LLC Welcome Group 2, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S. D. Ohio Case No. 23-53044) on September 1, 2023. In the petition signed by Abhijit Vasani, as president, InnVite Opco, Inc., sole member, the Debtor disclosed up to $10 million in both assets and liabilities. Judge C. Kathryn Preston oversees the case. Denis E. Blasius, Esq., at Thomsen Law Group, LLC, represents the Debtor as legal counsel. Secured lender RSS WFCM2019-C50 - OH WG2, LLC, is represented by Tami Hart Kirby, Esq. and Walter Reynolds, Esq. at Porter Wright Morris & Arthur LLP. WEST COUNSELING: Gets Final OK to Use Cash Collateral ----------------------------------------------------- West Counseling, PLLC received final approval from the U.S. Bankruptcy Court for the Western District of North Carolina, Charlotte Division, to use cash collateral. The final order authorized the Debtor to use cash collateral for operating expenses consistent with the updated budget. The Debtor must not exceed the budget by more than 10% per line item on a cumulative basis. The Debtor projects total operational expenses of $294,063 for the period from July 27 to September 7. Any trustee and Debtor's counsel fees provided for in the budget must be held in counsel's trust account until final fee applications are approved. As adequate protection for the Debtor's use of their cash collateral, secured creditors will receive replacement liens, with the same priority as their pre-petition liens. About West Counseling PLLC West Counseling, PLLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. N.C. Case No. 25-30504) on May 18, 2025. In the petition signed by Andrew West, chief executive officer, the Debtor disclosed up to $100,000 in assets and up to $500,000 in liabilities. Judge Ashley Austin Edwards oversees the case. John C. Woodman, Esq., at Essex Richards PA, represents the Debtor as legal counsel. WHITE FOREST: Set for Chapter 7 Liquidation After Failed Mine Sale ------------------------------------------------------------------ Alex Wittenberg of Law360 Bankruptcy Authority reports that on Friday, August 22, 2025, a Delaware bankruptcy judge ordered coal producer White Forest Resources Inc. to convert its Chapter 11 case to a Chapter 7 liquidation after the company's effort to sell a metallurgical coal mine collapsed. About White Forest Resources, Inc. White Forest Resources Inc. and affiliates are privately-held producers of premium metallurgical and thermal coal in the Central Appalachian coal basin. The Debtors operate two mining operations in West Virginia. The main buyers of the Debtors' premium metallurgical coal, which is used in a process to produce coke for steel manufacturing, include steel manufacturers, commodity brokers, and industrial clients. Electric utilities and industrial companies are the principal customers for the Debtors' thermal coal. White Forest Resources Inc. and affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-10195) on February 7, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $10 million and $50 million. Honorable Bankruptcy Judge Thomas M. Horan handles the case. The Debtor is represented by Alan M. Root, Esq., William E. Chipman, Jr., Esq., and Alison R. Maser, Esq., at Chipman Brown Cicero & Cole LLP in Wilmington, Delaware. The Debtors' CRO Provider is RK Consultants LLC. The Debtors' special counsel is Jones & Associates. The Debtors' noticing and claims agent is Stretto. WHITEHORSE 401: Has Deal on Cash Collateral Access -------------------------------------------------- Whitehorse 401, LLC and Wilmington Trust, National Association, As Trustee For The Registered Holders Of LSTAR Commercial Mortgage Trust 2017-5, Commercial Mortgage Pass-Through Certificates, Series 2017-5 advised the U.S. Bankruptcy Court for the Eastern District of New York that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. The Debtor requires the use of rents generated from the property located at 401 Whitehorse Road, Voorhees Township, New Jersey, to cover its operating expenses in accordance with a court-approved budget. The Debtor acknowledges, without prejudice to other parties' rights, that it borrowed $12.95 million from LSTAR Capital Finance II, Inc. on January 26, 2017. The loan was evidenced by a loan agreement, a promissory note, and a mortgage secured by the property. This loan changed hands multiple times -- assigned to LSTAR I, LLC in February 2017, reassigned to the Original Lender in March 2017, and finally transferred to LSTAR, which is now the current holder of all loan documents. As of the bankruptcy filing date, the Debtor owed approximately $13.45 million to LSTAR. These pre-petition obligations are acknowledged by the Debtor to be legal, valid, and enforceable, though the right to seek adjustments for default interest or other allowable charges is reserved. LSTAR holds a valid, perfected, and senior lien on substantially all of the Debtor's assets, including the property and its rents, subject only to limited permitted prior liens. As a result of the Debtor's continued use of the property and cash collateral, LSTAR is entitled to adequate protection against any diminution in value of its interests in the collateral. Therefore, the court-approved stipulation authorizes the Debtor to use cash collateral only during the period ending August 31, and strictly in accordance with the approved budget. Any expenditure outside or in excess of the budget is deemed unauthorized. To protect LSTAR's interest, the Debtor grants it a post-petition, continuing, perfected lien on all pre-petition and post-petition collateral, subject only to a limited carve-out. The carve-out includes statutory fees owed to the U.S. Trustee and the Clerk of the Court, and a capped amount of $5,000 for the fees of a potential Chapter 7 trustee. This lien does not attach to most Chapter 5 avoidance actions except those under section 549 and their proceeds. If this lien is insufficient to compensate LSTAR, the lender is also granted a superpriority administrative expense claim under 11 U.S.C. section 507(b), which is subordinate only to the carve-out. A copy of the motion is available at https://urlcurt.com/u?l=7TaOuY from PacerMonitor.com. About Whitehorse 401 LLC Whitehorse 401 holds the fee simple ownership of the property situated at 401 White Horse Road, Voorhees, New Jersey, which is valued at an estimated $5.1 million. Whitehorse 401 LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-40925) on February 25, 2025, listing $5,101,722 in assets and $15,371,903 in liabilities. The petition was signed by David Goldwasser as VP of Restructuring. Judge Elizabeth S Stong presides over the case. Scott Markowitz, Esq. at Tarter Krinsky & Drogin LLP represents the Debtor as counsel. WYNN RESORTS: Capital World Investors Hold 9.2% Equity Stake ------------------------------------------------------------ Capital World Investors, disclosed in a Schedule 13G (Amendment No. 1) filed with the U.S. Securities and Exchange Commission that as of June 30, 2025, it beneficially owns 9,584,511 shares of Wynn Resorts, Ltd.'s common stock. These shares represent 9.2% of the 104,554,301 shares believed to be outstanding. The filing notes that Capital World Investors ("CWI") is a division of Capital Research and Management Company ("CRMC"), as well as its investment management subsidiaries and affiliates Capital Bank and Trust Company, Capital International, Inc., Capital International Limited, Capital International Sarl, Capital International K.K., Capital Group Private Client Services, Inc., and Capital Group Investment Management Private Limited (together with CRMC, the "investment management entities"). CWI's divisions of each of the investment management entities collectively provide investment management services under the name "Capital World Investors." Capital World Investors may be reached through: Timothy J. Moon Vice President and Senior Counsel Capital Research and Management Company 333 South Hope Street, 55th Floor Los Angeles, CA 90071 Tel: 213-486-9200 A full-text copy of Capital World Investors' SEC report is available at https://tinyurl.com/3r3v6u5j About Wynn Resorts Ltd. Headquartered in Las Vegas, Nevada, Wynn Resorts, Limited owns and operates hotels and casino resorts. As of December 31, 2024, Wynn Resorts had $12.98 billion in total assets, $13.95 billion in total liabilities, and a total stockholders' deficit of $968.60 million. * * * Egan-Jones Ratings Company on January 14, 2025, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Wynn Resorts. ZAMA&ZAMA INC: Gets Final OK to Use Cash Collateral --------------------------------------------------- Zama & Zama Inc. received final approval from the U.S. Bankruptcy Court for the District of Nevada to use cash collateral. The court's order authorized the Debtor's final use of cash collateral to pay operating expenses in accordance with its budget, subject to a 10% variance. The U.S. Small Business Administration and Bank of America, N.A. will be provided with protection in the form of valid and perfected replacement security interests in and liens on the Debtor's assets and the proceeds thereof; and a superpriority claim under Section 507(b) against the Debtor and its estate. In addition, the Debtor has to make monthly payments of $731 to SBA and $6,010.61 to Bank of America. Meanwhile, Shopify will continue to receive payments in accordance with its contract with the Debtor. The Debtor is prohibited from granting any mortgages, deeds of trust, security interests or liens senior or equal to the existing pre-petition security interests. At the time of bankruptcy filing, the Debtor reported approximately $2 million in secured debt, $800,000 in unpaid rent, and around $4 million in general unsecured claims, including $2.5 million owed to Settle, Inc. The key secured creditors include SBA owed about $136,000; Bank of America owed nearly $399,000; Shopify Capital/WebBank, owed approximately $330,000; and Clearco, with a claim of roughly $225,000. Each lender holds a perfected security interest in certain business assets or receivables, but none hold perfected control over the Debtor's cash accounts. Bank of America, as secured creditor, is represented by: Joseph G. Went, Esq. Sydney R. Gambee, Esq. HOLLAND & HART LLP 9555 Hillwood Drive, 2nd Floor Las Vegas, NV 89134 Phone: 702.669.4600 Fax: 702.669.4650 jgwent@hollandhart.com srgambee@hollandhart.com About Zama&Zama Inc. Zama&Zama Inc. doing business as Karma and Luck, operates a retail business specializing in spiritual jewelry and home decor. Its product offerings include bracelets, necklaces, solid gold pieces, earrings, rings, charms, and anklets, as well as Tree of Life displays, ceramic decor, sage kits, wooden home blessings, large ceramics, and singing bowls. The Company is based in Las Vegas, Nevada, and sources its merchandise internationally, including from India and China. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-13501) on June 18, 2025. In the petition signed by Vladi Bergman, president and chief executive officer, the Debtor disclosed up to $10 million in both assets and liabilities. Judge August B. Landis oversees the case. Matthew C. Zirzow, Esq., at Larson & Zirzow, LLC, represents the Debtor as legal counsel. [] Angeion Group Earns Spot on 2025 Inc. 5000 for the Fourth Time ----------------------------------------------------------------- Angeion Group, a provider of settlement administration, mass tort, legal noticing, and bankruptcy administration services, is proud to announce its inclusion on the Inc. 5000 list of America's Fastest-Growing Private Companies for 2025. This is the fourth time that Angeion Group has made the list. "Earning our place on the Inc. 5000 for the fourth time is both an honor and a reflection of the extraordinary talent, dedication, and passion of our team," said Steven Weisbrot, CEO and President of Angeion Group. "Our growth is fueled by the trust our clients place in us and our relentless pursuit of innovation, precision, and results. This recognition underscores the strong partnerships we've built and reinforces our commitment to delivering cutting-edge solutions and unmatched service to the legal community." "Making the Inc. 5000 is always a remarkable achievement, but earning a spot this year speaks volumes about a company's tenacity and clarity of vision," said Mike Hofman, editor-in-chief of Inc. "These businesses have thrived amid rising costs, shifting global dynamics, and constant change. They didn't just weather the storm--they grew through it, and their stories are a powerful reminder that the entrepreneurial spirit is the engine of the U.S. economy." Inc. Magazine ranked Angeion 1489 on its annual Inc. 5000 list, the most prestigious ranking of the nation's fastest-growing private companies. The list is calculated based on the percentage of revenue growth from 2021 to 2024, and Angeion's position on it has climbed steadily -- rising more than 3,000 spots since debuting at No. 4,796 in 2019. Since its founding in 2013, Angeion Group has earned a reputation for delivering high-quality, technology-driven solutions for class action, mass tort, and bankruptcy administration. From designing industry-leading media notice programs to streamlining settlement management processes, the company continues to set the standard for efficiency, transparency, and client satisfaction. About Angeion Group Angeion Group is an industry-leading provider of comprehensive class action, mass tort, settlement management, legal noticing, and bankruptcy administration services. With a reputation for innovation and excellence, Angeion Group delivers services that increase efficiency, provide accountability, and give counsel and the court peace of mind. For more information, visit www.angeiongroup.com. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN: 1520-9474. 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