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251014.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, October 14, 2025, Vol. 29, No. 286 Headlines 1650 ARCH: Secured Party Sets November 5 Auction 6 GROUP LLC: Case Summary & 14 Unsecured Creditors 741 INC: Gets Final OK to Use Cash Collateral 875 CONLEY CV22: Final Cash Collateral Hearing Set for Oct. 21 ACADEMY AT PENGUIN: Hires J Barrett & Company as Broker ADMIRE CARE: Amends Plan to Include Humana Secured Claim ADVANCED INTEGRATION: S&P Assigns 'B-' ICR, Alters Outlook to Pos. ADVANCED TRENCHLESS: Court OKs Deal to Use SBA's Cash Collateral ALACHUA GOV'T: Bidding Procedures Approved, BMP as Stalking Horse ALLIANCE FARM: Unsecureds Will Get 30% in Liquidating Plan AMERGENT HOSPITALITY: Creditors to Get Proceeds From Liquidation AMICI MONROE: Creditors to Get Proceeds From Liquidation B MAC BUFFET: Final Hearing to Use Cash Collateral Set for Oct. 22 BE PLASTICS: Gets Interim OK to Use Cash Collateral BENITEZ & GALLOWAY: Case Summary & Seven Unsecured Creditors BIG LOTS: Plan Exclusivity Period Extended to January 2, 2026 BIG STORM BREWERY: Hires Marcus & Millichap as Real Estate Broker BLUE RIG: Seeks Chapter 7 Bankruptcy in New York BREWER MACHINE: Plan Exclusivity Period Extended to December 11 BRIGHTLIFE ELECTRIC: Court OKs Interim Use of Cash Collateral BW HOMECARE: S&P Raises ICR to 'CCC-' Following Debt Restructuring CHARLES MONEY: Unsecured Creditors to Split $502,400 in Plan CHASSEUR REALTY: Case Summary & Six Unsecured Creditors CHICAGO BOARD: S&P Rates 2025B/C Unlimited-Tax GO Ref. Bonds 'BB+' CHICAGO PUBLIC SCHOOLS: KBRA Downgrades Bonds to BBB- CONDUENT INC: S&P Lowers ICR to 'B' Due to Slow Deleveraging COURTESY SECURITY: Case Summary & Four Unsecured Creditors CP IRIS II: Moody's Affirms 'B3' CFR, Outlook Remains Stable CRS TRANSPORTATION: Seeks Chapter 7 Bankruptcy in Florida D'YOUVILLE UNIVERSITY: S&P Lowers Revenue Bonds Rating to 'BB+' DATAVAULT AI: Scilex Holding Holds 8.03% Equity Stake DEVERON CORP: Amends Forbearance Agreement With TD Bank to Dec. 12 DSR LAND: Case Summary & Two Unsecured Creditors EMG UTICA: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable EMPIRE CORE: Court OKs Interim Use of Cash Collateral ENERGOS INFRASTRUCTURE: Fitch Assigns 'B+' IDR, Outlook Stable F.L. SIMS FUNERAL: Case Summary & Seven Unsecured Creditors FAMILY INTERNATIONAL: Case Summary & One Unsecured Creditor FIRST BRANDS: Jefferies Defends Deals, Says Losses Are Manageable FIRST BRANDS: Jefferies Updates on Bankruptcy Impact FIRST BRANDS: KBRA Finds Minimal Private Credit Exposure FOSSIL GROUP: Extends Exchange Offer, Solicitation to Oct. 15 FTX TRADING: Prager Metis Settles With Victims Over 'Clean' Audit FUNDIMENSION LLC: Unsecureds Will Get 12.64% of Claims in Plan GENERAL ENTERPRISE: BoltRock Holds 31.72% Stake as of Sept. 30 GOAT HOLDCO: Moody's Affirms 'B2' CFR, Outlook Stable GOLD COAST MERIDIAN: Seeks Chapter 7 Bankruptcy in Georgia GYLMAR DEVELOPMENTS: Gets Extension to Access Cash Collateral HARDWOOD RESTAURANT: Seeks Chapter 11 Bankruptcy in California HARROW INC: Fitch Assigns 'B-' LongTerm IDR, Outlook Stable HELIUS MEDICAL: Fusion Summer, Chee Choon Wee Hold 17% Stake HELIUS MEDICAL: Solana Rocket Holds 9.99% of Class A Common Shares HURST OPERATIONS: Case Summary & Two Unsecured Creditors IOK TECHNOLOGY: Amends Unsecured Claims Pay Details KX 84 LLC: Case Summary & Five Unsecured Creditors LANDMARK RECOVERY: Ombudsman Hires Baker Donelson as Counsel LANDMARK RECOVERY: Ombudsman Hires SAK as Medical Advisor LARCO POOLS: Gets Final OK to Use Cash Collateral LASEN INC: Examiner Hires Sonoran Capital as Financial Advisor LLSSGG LLC: Voluntary Chapter 11 Case Summary MANNINGTON MILLS: S&P Upgrades ICR to 'B+', Outlook Stable MARELLI AUTOMOTIVE: Plan Exclusivity Extended to Feb. 6, 2026 MCKENNA STORER: Cash Collateral Hearing Set for Oct. 15 MERCER INTERNATIONAL: Fitch Alters Outlook on 'B+' IDR to Negative MILAN SAI: Gets Extension to Access Cash Collateral MINI MANIA: Further Fine-Tunes Plan Documents MJS MATERIALS: Seeks Subchapter V Bankruptcy in Florida MODIVCARE INC: Committee Hires White & Case LLP as Counsel MOGULS INDUSTRIES: Unsecureds Will Get 4.34% of Claims in Plan MONDAK PORTABLE: Court to Hold Cash Collateral Hearing Today NATIONAL MENTOR: Moody's Rates New Secured 1st Lien Bank Loans 'B3' NAVIDEA BIOPHARMACEUTICALS: Files for Chapter 11 Bankruptcy NEED SPACE: Seeks Subchapter V Bankruptcy in Tennessee NEUEHEALTH INC: Completes Merger With NH Holdings 2025 NEUEHEALTH INC: New Enterprise Associates No Longer Holds Shares NEUEHEALTH INC: NYSE to Remove Shares From Listing NEUEHEALTH INC: Secures $25M Tranche From Hercules in Amended Deal NEUEHEALTH INC: StepStone Group Ceases Ownership of Common Stock NEW GRANT: Case Summary & 17 Unsecured Creditors NEW NORMAL BREWING: Owners Seek Chapter 11 Bankruptcy in California NOISA INC: Case Summary & 18 Largest Unsecured Creditors NOVA CHEMICALS: S&P Places 'BB-' ICR on CreditWatch Positive OLD SCHOOL: Plan Exclusivity Period Extended to April 6, 2026 ORION ADVISOR: Moody's Affirms B3 CFR & Cuts First Lien Debt to B3 ORION ADVISOR: S&P Affirms 'B-' ICR, Outlook Stable P4 EXECUTIVE: Seeks to Hire CM Law PLLC as Bankruptcy Counsel PALAZZO DEVELOPMENT: Cash Collateral Hearing Set for Oct. 22 PALOMAR HEALTH: S&P Lowers Debt Ratings to 'CCC+', On Watch Neg. PAPA JOHN'S: S&P Affirms 'BB-' ICR, Outlook Stable PARK 54 RESTAURANT: Seeks Subchapter V Bankruptcy in Massachusetts PAULAZ ENTERPRISES: Court Extends Cash Collateral Access to Oct. 23 PIVOTAL ANALYTICS: Claims to be Paid from Continued Operations PREPAID WIRELESS: Hires Telecommunications Law as Expert Witness QUADRA FS: Plan Exclusivity Period Extended to November 12 RAVEN ACQUISITION: S&P Affirms 'B-' ICR, Outlook Positive RYVYL INC: CEO Fredi Nisan to Retire Oct. 31, Gets $350K Severance RYVYL INC: Director Forest Ralph Resigns for Personal Reasons RYVYL INC: Signs Merger Agreement With RTB Digital SCILEX HOLDING: Holds 8.03% Equity Stake in Datavault AI SHILO INN NEWPORT: Seeks Chapter 11 Bankruptcy in Washington SIGNATURE YHM: Plan Exclusivity Period Extended to November 8 SMART INVESTMENT: Case Summary & Five Unsecured Creditors SMILEDIRECTCLUB INC: Execs Drained Company Before Ch. 11, Suit Says SPIRIT AIRLINES: Court OKs $475 Million DIP Financing, AerCap Deal SPIRIT AIRLINES: KBRA Sees Minimal Impact From Lease Rejections STAR DTLA: Section 341(a) Meeting of Creditors on November 12 STARLIGHT US: Emerson at Buda Default Triggers Foreclosure TALEN ENERGY: Fitch Rates Proposed Senior Notes 'BB-' THUNDER SUN: Case Summary & 20 Largest Unsecured Creditors THUNDER SUN: Oct. 17 Deadline for Panel Questionnaires TRIMONT ENERGY GIB: Gets Extension to Access Cash Collateral TRIMONT ENERGY LIMITED: Gets Extension to Access Cash Collateral TRIMONT ENERGY NOW: Gets Extension to Access Cash Collateral VENUS CONCEPT: Inks $11.5M Debt-for-Equity Exchange With Madryn VENUS CONCEPT: Madryn Entities Hold Majority Stake VISION2SYSTEMS LLC: Amends SBA Secured Claim Pay WAMALA GENERAL: Unsecured Creditors to Get Nothing in Plan WANDERLY LLC: Updates Unsecured Claims Pay Details; Amends Plan WAYPOINT ROOFING: Court Extends Cash Collateral Access to Nov. 13 WELCH & WELCH: Seeks to Extend Plan Filing Deadline to Nov. 10 WHITNEY OIL & GAS: Gets Extension to Access Cash Collateral WILLIAMS PROPERTIES: Gets OK to Hire Brown Law Group as Counsel XCEL BRANDS: Settles With IM Topco, Gets Capital Appreciation Right [] Greenberg Partner Frost-Davies Earns 2025 Top Woman of Law [] U.S. Foreclosures Rises Year-Over-Year in Q3 2025 ********* 1650 ARCH: Secured Party Sets November 5 Auction ------------------------------------------------ Acore Capital Mortgage LP, as administrative agent for and on behalf of the mezzanine lender ("secured party") will offer for sale at public auction to held on Nov. 5, 2025, at 12:30 p.m., in front of the New York Supreme Court, New York County Courthouse located at 60 Centre Street, New York, New York 10007, all the right, title and interest of 1650 Arch Investor LLP to (i) 99.5% of the partnership interest in 1650 Arch Partners LLP ("mortgage borrower"), (ii) of the shares of common stock in a650 Arch Inc. ("mortgage borrower GP") and (iii) all other collateral pledged by the Debtor under that mezzanine pledge and security agreement dated as of June 14, 2018, and made by the Debtor in favor of the Secured Party ("pledged agreement"). In order for a prospective bidding to be a qualified bidder and eligible at the public auction, each prospective bidder must, unless otherwise agreed in writing by the Secured Party: (a) register with Colliers and execute and deliver to the broker a bidding certificate, an internal revenue service Form W-9 and a KYC Letter (i) by email to carl.neilson@colliers.com provided receipt in confirmed by response email from Carl. L. Neilson or (ii) by hand, certified mail, or overnight delivery by a nationally recognized courier service, with a courtesy copy sent by email to carl.neilson@colliers.com; so a to be actually received on or prior to 5:00 p.m. (prevailing Easter Time) on Sept. 25, 2025; (b) demonstrate to the secured party's satisfaction in advance of bidding its financial ability to tender payment for the collateral (c) demonstrate, to the secured party's satisfaction, that the certifications set forth in its bidding certificate are true and correct, including without limitation, with respect to the prospective bidder's ability to qualify as a qualified transferee; and (d) at least two business days prior to the start of the auction, provide an initial deposit to the title company or other agent designated by the secured party, by wire transfer of immediately available funds from a U.S. Commercial bank that is a member of the federal reserve system, in an amount equal to $50,000. Prospective bidders are encourage to perform such due diligence as they deem necessary. The full terms and conditions of sale, copies of the relevant agreements, information for attending the auction, and other information may be obtained by contacting Colliers, Attention: Carl. L. Neilson, 2005 Market Street, Suite 4010, Philadelphia, Pennsylvania 19103, Tel: (610) 684-1856, Email: carl.neilson@colliers.com. In the event of any conflict between the terms herein and the full terms of public sale, the full terms of public sale will govern. For further information please visit: https://www.bit.ly/1650Arch. 6 GROUP LLC: Case Summary & 14 Unsecured Creditors -------------------------------------------------- Debtor: The 6 Group, LLC d/b/a 6 Group, LLC 440 Black Rock Tpke Redding, CT 06896 Business Description: The 6 Group, LLC, a single-asset real estate debtor under 11 U.S.C. Section 101(51B), holds its principal assets at 433 Belden Hill Road, Wilton, Connecticut 06897. Chapter 11 Petition Date: October 6, 2025 Court: United States Bankruptcy Court District of Connecticut Case No.: 25-50763 Debtor's Counsel: Jeffrey M. Sklarz, Esq. GREEN & SKLARZ LLC 1 Audubon St, 3rd Fl New Haven, CT 06511 Tel: 203-285-8545 Fax: 203-823-4546 Email: jsklarz@gs-lawfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Hernan Benitez as member. A full-text copy of the petition, which includes a list of the Debtor's 14 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/NGWIYDY/The_6_Group_LLC__ctbke-25-50763__0001.0.pdf?mcid=tGE4TAMA 741 INC: Gets Final OK to Use Cash Collateral --------------------------------------------- 741, Inc. received final approval from the U.S. Bankruptcy Court for the District of Colorado to use the cash collateral of its secured creditors to fund operations. The final order approved the proposed adequate protection for Northeastern Colorado Revolving Loan Fund and other secured creditors through post-petition liens on the Debtor's inventory and income. These post-petition liens will have the same priority as the secured creditors' pre-bankruptcy liens. As additional protection, the final order directed the Debtor to make monthly payments of $5,953 to Northeastern Colorado Revolving Loan Fund; use cash collateral only per the approved budget (with deviations limited to 15% without creditor or court approval); keep collateral insured; maintain the collateral in good repair; and provide monthly accounting and operating reports. The final order preserves all rights of the secured creditors to protect their interests and claims against the Debtor's assets. A copy of the final order is available at https://is.gd/Ckvaev from PacerMonitor.com About 741 Inc. 741 Inc., doing business as Wisdom Rides of America, manufactures and designs amusement rides from its base in Merino, Colorado. The company produces attractions such as roller coasters, family rides, and thrill rides, and also provides refurbishment, parts, and maintenance services. Its products serve amusement parks, traveling carnivals, and family entertainment centers across the U.S. and internationally. 741 Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 25-15550) on August 28, 2025. In its petition, the Debtor reported total assets of $1,425,326 and total liabilities of $6,760,662. Honorable Bankruptcy Judge Thomas B. McNamara handles the case. The Debtor is represented by Jonathan M. Dickey, Esq., at Kutner Brinen Dickey Riley, P.C. 875 CONLEY CV22: Final Cash Collateral Hearing Set for Oct. 21 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of New York is set to hold a hearing on October 21 to consider final approval of the motion filed by 875 Conley CV22, LLC and affiliates, 925 Conley CV22, LLC and 3000 Ember Drive CV2021, LLC to use the cash collateral of their lenders. The Debtors were previously authorized to use cash collateral pursuant to the court's September 19 order, which approved their stipulation with secured lenders, CAF Bridge Borrower AX, LLC and CAF Bridge Borrower WF-N, LLC. Under the stipulation, the Debtors were authorized to use cash collateral from September 19 to December 31 or until the occurrence of so-called events of default; entry of an order terminating cash collateral access; or the closing of the sale of the Debtors' real properties in Atlanta and Decatur, Georgia. The stipulation provided lenders with protection in the form of replacement liens on all of the Debtors' assets; real estate tax escrow payment; "adequate protection" payment; and superpriority administrative claims against the Debtors. A copy of the stipulation is available at https://is.gd/xVx5Md from PacerMonitor.com. About 875 Conley CV22 875 Conley CV22, LLC is a single-asset real estate entity whose principal property is located at 875 Conley Road SE, Atlanta, GA 30354, and comprises 56 residential units. 875 Conley CV22 and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Lead Case No. 25-72983) on August 4, 2025. In its petition, 875 Conley CV22 disclosed up to $50,000 in assets and $7,350,000 in liabilities. Honorable Bankruptcy Judge Louis A. Scarcella handles the cases. The Debtors are represented by Mark E. Cohen, Esq., at BFSNG Law Group, LLP. ACADEMY AT PENGUIN: Hires J Barrett & Company as Broker ------------------------------------------------------- The Academy at Penguin Hall, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Massachusetts to employ J Barrett & Company as broker. The firm will market and sell the Debtor's real property located at 41 Essex Street in Wenham, Massachusetts. The firm will be paid a commission of 3 percent of the gross purchase price of the property. 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: Ted Richard J Barrett & Company 15 Walnut Road, Suite J Hamilton, MA 01982 Tel: (978) 922-2700 About The Academy at Penguin Hall, Inc. The Academy at Penguin Hall Inc. is a private, college-preparatory day school for young women in grades 9 through 12. Located in Wenham, Massachusetts, the school offers interdisciplinary academic programs and emphasizes leadership, critical thinking, and the arts. The Academy at Penguin Hall sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-11191) on June 11, 2025. In its petition, the Debtor reported between $10 million and $50 million in assets and liabilities. The Debtor is represented by John T. Morrier, Esq., at Casner & Edwards, LLP. ADMIRE CARE: Amends Plan to Include Humana Secured Claim -------------------------------------------------------- Admire Care LLC submitted a Second Amended Plan of Reorganization dated October 1, 2025. This Plan provides for 1 class of secured claims, 1 class of unsecured claims; and 1 class of equity security holders. The Debtor's projected disposable income is $19,539.00. Class 1 consists of the Secured Claim of SBA. This Claim is secured by liens on the SBA Collateral. The Class 1 Secured Claim is approximately $12,500.00, less payments made pre-confirmation. This Class is Unimpaired. The Debtor will pay or cause to be paid the Allowed Secured Claim of the SBA in full on the Effective Date. This claim shall be paid directly by the Debtor. Class 4 consists of the Humana Allowed Secured Claim represented by Claim Number 6. This claim is secured by Humana's right to recoupment and setoff against receivables due from Humana (collectively, the "Humana Collateral"). The Class 4 Secured Claim is approximately $20,179.00, less payments made pre-confirmation. This Class is Impaired. The Class 4 Humana Allowed Secured Claim shall be paid in monthly installments of $800.00 until the Allowed Secured Claim has been paid in full. This Claim shall be paid directly by the Debtor. Humana shall retain its rights in and to the Humana Collateral until the Class 4 Allowed Secured Claim is paid in full. Per Article VI, the Debtor is assuming the Long Term Care Participation Agreement effective May 1, 2019. The Debtor assumes all obligations under the Long Term Care Participation Agreement, and Humana shall be authorized to recoup any additional prepetition overpayments identified and any future overpayments arising under the Agreement in the ordinary course of business. The Amended Plan does not alter the proposed treatment for unsecured creditors and the equity holder: Class 2 consists of the Allowed Unsecured Claims against the Debtor. This Class is Impaired. * Consensual Plan Treatment: The liquidation value or amount that unsecured creditors would receive in a hypothetical chapter 7 case is approximately $0.00. Accordingly, the Debtor proposes to pay unsecured creditors a pro rata portion of $19,600.00. The Reorganized Debtor shall pay said amount in equal quarterly payments of $1,633.33 and shall be disbursed pro rata to the holders of Allowed General Unsecured Claims. Payments shall commence on the fifteenth day of the month, on the first month that begins more than fourteen days after the Effective Date and shall continue quarterly for eleven additional quarters. Pursuant to Section 1191 of the Bankruptcy Code, the value to be distributed to unsecured creditors is greater than the Debtor's projected disposable income to be received in the 3-year period beginning on the date that the first payment is due under the plan. Holders of Class 2 General Unsecured Claims shall be paid directly by the Debtor. * Nonconsensual Plan Treatment: The liquidation value or amount that unsecured creditors would receive in a hypothetical chapter 7 case is approximately $0.00. Accordingly, Debtor proposes to pay unsecured creditors a pro rata portion of its projected Disposable Income, $19,539.00. If the Debtor remains in possession, plan payments shall include the Subchapter V Trustee's administrative fee which will be billed hourly at the Subchapter V Trustee's then current allowable blended rate. Plan Payments shall commence on the first month following the Effective Date, and shall continue quarterly for eleven additional quarters. The quarterly payment for the first four quarters shall be $1,692.25. The quarterly payments for the second four quarters shall be $2,214.75. The quarterly payments for the final four quarters shall be $977.75. Holders of Class 2 claims shall be paid directly by the Debtor. Class 3 consists of any and all equity interests and warrants currently issued or authorized in the Debtor. This Class is Unimpaired. Holders of Class 3 interests shall retain their full equity interest in the same amounts, percentages, manner and structure as existed on the Petition Date. The Plan contemplates that the Reorganized Debtor will continue to operate the Debtor’s business. Except as explicitly set forth in this Plan, all cash in excess of operating expenses generated from operation until the Effective Date will be used for Plan Payments or Plan implementation, cash on hand as of Confirmation shall be available for Administrative Expenses. A full-text copy of the Second Amended Plan dated October 1, 2025 is available at https://urlcurt.com/u?l=psiizI from PacerMonitor.com at no charge. Counsel for the Debtor: Jeffrey S. Ainsworth, Esq. BransonLaw, PLLC 1501 East Concord Street Orlando, Florida 32803 Telephone: (407) 894-6834 Facsimile: (407) 894-8559 About Admire Care LLC Admire Care LLC is a home health care services provider based in Clermont, Florida that offers medical and non-medical care to patients in their homes. Admire Care LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla.Case No. 25-03163-GER) on May 27, 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 Tiffany P. Geyer handles the case. The Debtors are represented by Jeffrey Ainsworth, Esq. at BransonLaw PLLC. ADVANCED INTEGRATION: S&P Assigns 'B-' ICR, Alters Outlook to Pos. ------------------------------------------------------------------ S&P Global Ratings revised its outlook to stable from positive and affirmed its 'B-' issuer credit rating on Advanced Integration Technology L.P. (AIT). S&P's 'B-' issue-level and '3' recovery (rounded estimate: 50%) ratings on the first-lien debt are unchanged. S&P said, "The stable outlook on AIT reflects our expectation that its credit measures will remain in line with the rating in 2025 with positive cash flow and debt to EBITDA above 4x. "We revised our outlook to stable because of a shrinking backlog and weak FOCF. AIT exited the second quarter with a backlog nearly 40% below the prior year. However, we believe demand from customers for investments in capital spending projects is likely to improve throughout 2026 across commercial aerospace, military, and classified end markets. AIT may not sustain FOCF in line with our expectations for a higher rating the next few years, and we forecast $15 million-$25 million in 2025 (down from our previous expectation of $30 million-$50 million) with modest improvement in 2026. Further, given sponsor ownership, we believe the company could undertake a releveraging transaction that results in S&P Global Ratings-adjusted debt to EBITDA returning above 5x over the next few years. "We expect flat revenue growth in 2025 and modest organic growth in 2026. S&P Global Ratings-adjusted EBITDA margin will remain in the low-30% area after expanding in 2025 due to project mix shifting toward higher-margin automation projects and realized cost savings. We expect the mix will remain similar in 2026. Our base case assumes improved customer demand with some downside risk to our forecast if customers delay capital spending. If AIT does not replace rolled off programs in 2025, its top line next year could sharply decline. This could quickly tighten margins from records and increase leverage well beyond our forecast. "We view AIT's liquidity as adequate over the next 12 months. AIT ended the second quarter of 2025 with $77 million total liquidity, comprising balance sheet cash of $32 million and full access to its $45 million cash flow revolver. Upcoming debt maturities in mid-2027 could be a significant strain when they become current, but AIT has time to address them. "The stable outlook on AIT reflects our expectation that credit metrics will remain commensurate with the rating as demand across defense, classified, and commercial aerospace improves through 2026. We expect positive cash flow and S&P Global Ratings-adjusted debt to EBITDA above 4x in 2025." S&P could lower its rating on AIT if it sustains cash flow deficits that drain liquidity sources and S&P believes the capital structure is unsustainable. This could occur if: -- Customers delay capital projects or operational setbacks weaken earnings and cash flow; or -- Management and owners do not adequately address upcoming debt maturities. Although unlikely in the next 12 months, S&P could raise the rating if debt to EBITDA remains well below 7x and it expects meaningfully sustained positive free cash flow as AIT manages advanced payments and somewhat cyclical demand from customers transitioning from mature programs. This could occur if: -- The company books more business than expected as capital spending from commercial aerospace or defense customers improves, increasing demand. ADVANCED TRENCHLESS: Court OKs Deal to Use SBA's Cash Collateral ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California, Oakland Division approved a stipulation allowing Advanced Trenchless, Inc. to use the cash collateral of the U.S. Small Business Administration. The stipulation with the SBA allows 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 agency holds two loans with the Debtor: a $500,000 loan from 2020, which is unsecured, and a $1.5 million loan from 2022, secured by all of the Debtor's personal property. The 2022 note 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. A copy of the stipulation is available at https://is.gd/qgiZi3 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. Hemar, Rousso & Heald, LLP 15910 Ventura Blvd., 12th Floor Encino, CA 91436 Telephone: (818) 501-3800 Facsimile: (818) 501-2985 jsimon@hrhlaw.com ALACHUA GOV'T: Bidding Procedures Approved, BMP as Stalking Horse ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved the bidding procedures for the sale of real and personal property assets of Alachua Government Services Inc. in Alachua, Florida, free and clear of liens, claims, interests, and encumbrances. The Court authorized the Debtor to designate Blue Marin Pharmaceuticals LLC or its designee as the stalking horse bidder. Any prospective bidder that intends to participate in the auction must submit in writing to Jeffries a qualified bid on or before Oct. 6, 2025, at 4:00 p.m. (ET). An auction will take place on Oct. 8, 2025, at 10:00 a.m. (ET) at the offices of Richards, Layton & Finger P.A., located at One Rodney Square, 920 North King Street, Wilmington Delaware 19801. Objections to the sale, if any, must be filed no later than 4:00 p.m. (ET) on Oct. 10, 2025. A sale hearing is set for Oct. 17, 2025, at 10:00 a.m. (ET) to approve the sale of the Debtor's assets. According to the Troubled Company Reporter on Sept. 15, 2025, as a result of the economic pressures facing the Debtor, in February 2025, Jefferies LLC and Jefferies International Limited were engaged to pursue a potential sale or other strategic transactions involving the Debtor's business and assets, including sales of the Debtor's operating business and the Assets. In connection with Jefferies' outreach to interested parties, Jefferies asked potential bidders to provide indications of interest for any stalking horse bid by July 29, 2025. Prior to the Stalking Horse Bid Deadline, the Debtor received four indications of interest for all or a portion of the Assets. Following the Stalking Horse Bid Deadline, the Debtor, in consultation with its advisors, began negotiating a proposed stalking horse bid with a potential purchaser. The Debtor understands that the Government and the Potential Purchaser are in discussions regarding a proposed solution and are hopeful those discussions continue and result in an acceptable agreement for all parties but the Debtor cannot afford any additional delay to its sale timeline due to its liquidity constraints and need to exit its Alachua Site. The Debtor, in consultation with its advisors, believes that pursuing the sale of the Assets, including with the ability to select a Stalking Horse Bidder, is the course of action most likely to maximize value and encourage robust bidder participation. The Debtor and its advisors have proposed a timeline that balances the need to provide adequate notice to parties in interest, and to sufficiently market the Assets in the context of a pre- and postpetition Sale Process with the need to quickly and efficiently consummate a Sale Transaction. The Debtor believes that the Bidding Procedures will provide a uniform process by which interested bidders can participate in a competitive auction for the Assets. The Debtor has determined that pursuing the sale in the manner and within the time periods prescribed in the Bidding Procedures is in the best interests of the Debtor's estate, will provide interested parties with sufficient opportunity to participate, and will maximize the value of the Assets for the benefit of its stakeholders. The Bid must include a letter stating that the Prospective Bidder's offer is irrevocable and binding until the closing of the Sale if such Prospective Bidder is the Successful Bidder, and that the Prospective Bidder agrees to serve as a Backup Bidder if such bidder's Bid is selected as the next highest or otherwise next best bid after the Successful Bid. The Bid must clearly set forth the cash purchase price, and any other non-cash consideration (with the form of such consideration specified), to be paid. Each Bid must either provide for the payment of aggregate consideration, in the Debtor's good-faith business judgment, the value of which is in excess of at least the sum of (x) the purchase price under any Stalking Horse Agreement plus (y) any Bid Protections approved by the Court and clear the minimum Overbid amount which shall be made in increments of at least $250,000 in cash, cash equivalents, or such other consideration that the Debtor deems equivalent The Debtor submits that the Sale Noticing and Objection Procedures, coupled with the Assumption and Assignment Procedures, constitute adequate and reasonable notice of the key dates and deadlines and other important information regarding the Sale Process, including the Objection Deadlines, the Bid Deadline and the time and location of the Auction and Sale Hearing. About Alachua Government Services, Inc. Alachua Government Services Inc., is a pharmaceutical and medicine manufacturing company formerly known as Ology Bioservices. The company, based in Alachua, Florida, operates in the pharmaceutical manufacturing sector. Alachua Government Services Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11289) on July 6, 2025. In its petition, the Debtor reports estimated assets between $50 million and $100 million and estimated liabilities between $100 million and $500 million. Judge J. Kate Stickles oversees the case. Richards, Layton & Finger, P.A. is Debtor's legal counsel. ALLIANCE FARM: Unsecureds Will Get 30% in Liquidating Plan ---------------------------------------------------------- Tom A. Howley, the chapter 11 Trustee, and the Official Committee of Unsecured Creditors submitted a Combined Disclosure Statement and Plan of Liquidation for Alliance Farm and Ranch, LLC ("AFR") and Alliance Energy Partners, LLC ("AEP") dated October 2, 2025. On or around March 23, 2022, Jerrod Furr formed the AFR Debtor, an entity wholly owned by Furr. On or April 15, 2022, Dustin Etter and Furr (collectively, the "Prepetition Insiders") were both the direct owners of the AEP Debtor. The Debtors sought to enter into a settlement agreement with the Ostranders that purported to settle all claims and counterclaims in the Lawsuit. The result of the purported settlement would have allowed the sale of the Property and the transfer of proceeds directly to Jerod Furr. This transaction would result in at least $1,000,000 of property of the Debtors' Estates to be transferred to a third party without permission from the Bankruptcy Court and without input from any other constituencies in these Bankruptcy Cases. When the Committee discovered the proposed settlement, it filed a Motion to Appoint a Chapter 11 Trustee. The Court held a hearing and entered an order appointing a chapter 11 trustee on May 23, 2025. Tom Howley was appointed as the chapter 11 trustee in these Bankruptcy Cases. The AFR and AEP Debtors will be substantively consolidated under the Plan based on numerous facts including (i) all the non-Insider creditors dealt with the entities as a single economic unit and did not rely on their separate identify in extending credit; (ii) AFR has no non-Insider creditors; and (iii) the affairs of the Debtors are so entangled that consolidation would benefit all creditors. Additionally, and most importantly, AFR owes all of the money it is holding to AEP based on (i) admissions by Furr that the money held by AFR should go back to AEP and the real creditors; (ii) allegations by Etter that AFR was being used as an instrumentality of fraud; and (iii) the Forensic Report demonstrating the flow of money from AEP to AFR. Pursuant to prior orders of the Bankruptcy Court, the Trustee on behalf of the Debtors settled ongoing litigation with Darla and Erik Ostrander (the "Ostranders"). In exchange for a release and to end ongoing litigation, the Ostranders agreed to pay $1,500,000 to the Trustee and received releases. The Plan contemplates the creation of a Liquidating Trust on the Effective Date for the purposes of effectuating the liquidation of the Liquidating Trust Assets and distributing the proceeds of the Liquidating Trust to the Beneficiaries of the Liquidating Trust, which Liquidating Trust shall issue Liquidating Trust Units, as described in this Plan and the Liquidating Trust Agreement. The Liquidating Trust shall be managed by a Liquidating Trustee in accordance with the Liquidating Trust Agreement and who shall be selected by the Committee and the Trustee. The Plan provides for the liquidation of the Debtors and payment, or other satisfaction, on or after the Effective Date, with respect to allowed Administrative Expense Claims, Priority Tax Claims, Other Priority Claims, Secured Claims, and General Unsecured Claims. Class 3 consists of all General Unsecured Claims. The Debtors estimate that the amount of General Unsecured Claims is no less than 2.5 million dollars. In full and final satisfaction of each Allowed General Unsecured Claim, the Holder of such Claim shall receive in full and final satisfaction of such Holder's Allowed Claim its Pro Rata Share of Liquidating Trust Units. This Class will receive a distribution of 30% of their allowed claims. Class 3 General Unsecured Claims are impaired. Class 4 consists of all Insider Unsecured Claims. In full and final satisfaction of each Allowed Insider Unsecured Claim, the Holder of such Claim shall receive in full and final satisfaction of such Holder's Allowed Claim its Pro Rata Share of Liquidating Trust Units after Allowed General Unsecured Claims are satisfied in full. Class 4 Insider Unsecured Claims are impaired. Class 5 consists of all Equity Interests. On the Effective Date, all Equity Interests will be deemed cancelled and extinguished. Holders of Equity Interests will receive no property or Distribution under the Plan on account of such Equity Interests. On the Effective Date, the Trustee shall transfer to the Liquidating Trust the Liquidating Trust Assets. The Liquidating Trust shall administer the Liquidating Trust Assets and distribute Available Trust Cash to the Beneficiaries of the Liquidating Trust in accordance with the terms of the Liquidating Trust Agreement, Plan, and Plan Confirmation Order. The Liquidating Trust shall be responsible for and shall have standing to evaluate, prosecute and settle all causes of action transferred to the Liquidating Trust. The Trustee shall transfer to the Liquidating Trust the Liquidating Trust Funding Amount on the Effective Date for the administration of the Liquidating Trust. In the event of any inconsistency between the terms of the Plan, the Plan Confirmation Order and Liquidating Trust Agreement regarding the Liquidating Trust, the terms of the Plan shall govern, unless expressly ordered otherwise in the Plan Confirmation Order. A full-text copy of the Combined Disclosure Statement and Plan dated October 2, 2025 is available at https://urlcurt.com/u?l=i5XI5o from PacerMonitor.com at no charge. Attorneys to Tom Howley, as Chapter 11 Trustee: Eric Terry, Esq. Howley Law PLLC TC Energy Center 700 Louisiana Street Suite 4545 Houston, TX 77002 Telephone: (713) 333-9125 Email: eric@howley-law.com Attorneys to the Official Committee of Unsecured Creditors: William Hotze, Esq. Dykema Gossett, PLLC 5 Houston Center 1401 McKinney Street, Suite 1625 Houston, TX 77010 Tel: (713) 904-6900 E-mail: whotze@dykema.com About Alliance Farm and Ranch Alliance Farm and Ranch, LLC filed voluntary Chapter 7 petition (Bankr. S.D. Tex. Case No. 25-30155) on January 7, 2025, listing between $1 million and $10 million in both assets and liabilities. On March 19, 2025, the case was converted to one under Chapter 11. Alliance Energy Partners LLC, a directional drilling service provider in Spring, Texas, filed Chapter 11 petition (Bankr. S.D. Tex. Case No. 25-31937) on April 7, 2025. In its petition, Alliance Energy Partners reported total assets of $1 million and total liabilities of $2,614,465. On April 23, 2025, the court ordered the joint administration of the Debtors' Chapter 11 cases. Judge Alfredo R. Perez oversees the cases. The Debtors are represented by Okin Adams Bartlett Curry, LLP. Tom A. Howley is appointed as trustee in these Chapter 11 cases. The trustee tapped HMP Advisory Holdings, LLC, doing business as Harney Partners, as his forensic accountant. AMERGENT HOSPITALITY: Creditors to Get Proceeds From Liquidation ---------------------------------------------------------------- Amergent Hospitality Group Inc. and its Jointly Administered Debtors filed with the U.S. Bankruptcy Court for the Northern District of Texas a First Amended Disclosure Statement for the Joint Plan of Liquidation. As of the Petition Date, American Hospitality Group, Inc. owned and operated approximately 5 fast-casual restaurant brands: Little Big Burger ("LBB"); Burgers Grilled Right ("BGR"); Boudreaux's Cajun Kitchen ("BCK"); Jaybee's Chicken Palace and PizzaRev. AGHI's principal office is located at 7529 Red Oak Lane, Charlotte, North Carolina 28226. The Debtors own no real estate, but leased each of the store locations. The primary tangible assets of the Debtors consist of the leased locations, store-level bank accounts and a small amount of accounts receivable in the form of credit card receipts (typically 1-3 days). During the proceeding, the Debtor sought to sell its Little Big Burger and Boudreaux's Cajun Kitchen stores. The Debtors filed their motion to sell the Little Big Burger Brand on December 31, 2024, with interim relief granted on January 14, 2025. The sale was approved by final order entered January 30, 2025 and closed on or about January 31, 2025 for a gross purchase price of $1,000,000. The Debtors filed their motion to sell the Boudreaux's Cajun Kitchen Brand on January 6, 2025, with interim relief granted on January 14, 2025. The sale was approved by final order entered January 30, 2025 and closed on or about February 4, 2025 for a gross purchase price of $150,000. The Plan provides for the reorganization of the parent Debtor, AHGI, by the cancellation of all existing equity interests. Holders of unsecured claims against AGHI will receive nothing under the Plan. New common stock in AHGI shall be issued to the holders of allowed secured claims against AHGI. It will retain ownership of AHGI's nondebtor subsidiaries that own the Jantzens' Beach Wings and Owl's Nest restaurant and gaming establishments in Oregon. The Plan also provides for the liquidation and conversion of all of the Subsidiary Debtors' remaining assets to Cash and the distribution of the net proceeds realized from the sale of assets to creditors holding Allowed Claims in accordance with the treatment set forth in the Plan. In addition, the Plan contemplates the consolidation of the Estates into a single and the appointment of a Plan Trustee to, among other things, resolve Disputed Claims, implement the terms of the Plan, pursue Reserved Causes of Action, make distributions, and close the Chapter 11 Cases. Primarily, the Plan Trust will be distributing the cash proceeds of the prior sale of the Oregon Little Big Burger Restaurants. The Plan provides for the liquidation of the Debtors by the transfer and sale of property and payment of the debts and the monetization of certain Causes of Action. Further, the Debtors maintain that there is a reasonable expectation that the payments required to be made during the term of the Plan will, in fact, be made. Class 3 consists of all Unsecured Claims. Each Allowed General Unsecured Claim shall receive on the Initial Distribution Date, or as soon thereafter as is practicable, and on subsequent Distribution Dates as specified in the Trust Agreement, a Pro Rata Distribution of the Net Available Proceeds under this Plan until such time as the Allowed amount of such Claim is paid in full. Claims in Class 3 are Impaired. Class 6 consists of all Intercompany Interests. In the sole discretion of the Plan Trustee, Intercompany Interests shall either be (a) reinstated for administrative convenience; or (b) released without any distribution on account of such Interests. Class 6 consists of all Existing Equity Interests in AHGI. On the Effective Date, Existing Equity Interests shall be extinguished and the Holders of such Interests shall not receive or retain any Distribution, property, or other value on account of such Interests. This Plan shall be funded from the Trust Assets [of the Subsidiary Debtors] transferred to the Plan Trust, including any proceeds therefrom. On or before the Effective Date, the Subsidiary Debtors and the Plan Trustee shall execute the Trust Agreement. On the Effective Date, (a) the Plan Trust shall be created, and (b) the Trust Assets shall be transferred to the Plan Trust. A full-text copy of the First Amended Disclosure Statement dated October 3, 2025 is available at https://urlcurt.com/u?l=dDhKdc from PacerMonitor.com at no charge. Counsel to the Debtor: Richard G. Grant, Esq. CM LAW PLLC National Litigation Support Center 13101 Preston Road, Suite 110-1510 Dallas, Texas 75240 Telephone: 214-210-2929 Email: rgrant@cm.law About Amergent Hospitality Group Inc. Amergent Hospitality Group Inc. operates a fast food restaurant concept. Amergent Hospitality Group Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-42483) on July 18, 2024. In the petition filed by Mike Pruitt, as president, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Judge Mark X Mullin presides over the case. The Debtor is represented by Richard Grant, Esq. at Culhane, PLLC. AMICI MONROE: Creditors to Get Proceeds From Liquidation -------------------------------------------------------- Amici Monroe, LLC filed with the U.S. Bankruptcy Court for the Northern District of Georgia a Chapter 11 Plan of Liquidation dated October 1, 2025. The Debtor is the franchisee of a restaurant and the owner of the assets of that restaurant. The restaurant has developed a strong presence in the area, consistently offering high-quality service and attracting a loyal customer base. Due to circumstances outside of the Debtor's control, difficulties were encountered in marketing and selling the restaurant. In response to these challenges, the Debtor commenced this Subchapter V Chapter 11 case to preserve the value of the business, stabilize operations, and pursue a restructuring plan that will allow for an orderly liquidation and resolution of its obligations while maximizing recovery for creditors. Consequently, the Debtor determined that its best course of action to maximize the value of its Estate would be to pursue a sale, ideally in a "package deal", of all of its tangible and intangible assets. In filing this Plan, the Debtor seeks to implement an orderly process for liquidating the Debtor's assets and maximizing value and expeditious distributions to creditors. The Debtor has begun the process of pursuing a sale of substantially all of its assets (the "Purchased Assets"), and several parties have expressed serious interest. Based on offers received, the Debtor believes that a sale of the Purchased Assets would generate proceeds maximum value to the estate. This Plan deals with all property of the Debtor and provides for treatment of all Claims against the Debtor and its property. Class 2 consists of General Unsecured Claims. The Holders of Allowed General Unsecured Claims shall receive payments of Available Cash, on a pro rata basis, after Synovus's Secured Claim has been satisfied in full. Each Holder of an Allowed General Unsecured Claim shall be entitled to receive such holder's pro rata share of Available Cash on the later of: (a) the date or dates determined by the Disbursing Agent, to the extent there is Cash available for distribution in the judgment of the Disbursing Agent, having due regard for the anticipated and actual expenses, and the likelihood and timing, of the process of liquidating or disposing of the remaining Assets; and (b) the date on which such Claim becomes an Allowed Claim. Given the uncertainties surrounding recovery from the sale of the Purchased Assets and any other claims of the Debtor against third parties, it is not possible to predict with any certainty the estimated distribution to General Unsecured Creditors. Class 2 is Impaired and entitled to vote on the Plan. Class 3 consists of Equity Interests. The Reorganized Debtor shall not make any distributions or pay any dividends related to any Equity Interests unless and until all distributions related to all Allowed Claims in Classes 1-2 have been made in full as set forth herein. Equity Interests in the Debtor will be dealt with according to the Sale Procedures. After the Confirmation Date, and to the extent that such authority has not already been granted by an order of the Court, the Debtor, the Reorganized Debtor, or the Liquidating Trustee (as applicable) will be authorized to sell or refinance its assets free and clear of liens, claims, and encumbrances as set forth herein (the "Sale Procedures"). In the event the applicable assets are subject to secured claims, the Debtor is authorized to sell or refinance such property free and clear of liens, claims, and encumbrances if such property is sold for an amount that is at least equal the outstanding amount of Allowed Secured Claims securing such property. Such amounts are referred to in the Plan as the "Release Amount." The Release Amount, after payment of customary closing costs including broker fees and other items customarily attributed to the seller (in a sale) and borrower (in a refinancing), shall be paid as follows: (i) first to cover any ad valorem property taxes associated with the particular asset, (ii) then secured claims in order of priority, to the extent of available Sale Proceeds, and (iii) then to fund the Debtor's other obligations as set forth in this Plan. A full-text copy of the Liquidating Plan dated October 1, 2025 is available at https://urlcurt.com/u?l=jpoX6C from PacerMonitor.com at no charge. Counsel to the Debtor: Benjamin R. Keck, Esq. Jonathan Clements, Esq. KECK LEGAL, LLC 2801 Buford Highway NE, Suite 115 Atlanta, GA 30329 Telephone: (470) 826-6020 E-mail: bkeck@kecklegal.com About Amici Monroe LLC Amici Monroe LLC, operating as Amici Cafe in Georgia, operates a casual dining restaurant serving Italian-American cuisine, including pizza, pasta, sandwiches, and wings, as part of the regional Amici restaurant chain. Amici Monroe sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-20945) 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. The Debtor is represented by Benjamin R. Keck, Esq., at Keck Legal, LLC. B MAC BUFFET: Final Hearing to Use Cash Collateral Set for Oct. 22 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Georgia is set to hold a hearing on October 22 to consider final approval of B Mac Buffet, LLC's bid to use cash collateral. The Debtor was previously authorized to use up to $10,750 in cash collateral to fund operations and grant its lenders replacement liens on its cash collateral pursuant to the court's September 19 interim order. This interim authorization remains in effect until the final hearing. The Debtor's lenders are Corporation Service Company, G and G Funding Group, LLC, US Foods, Inc., Alpine Advance 5, LLC, Institution Food House, Inc. and Performance Food Group Hickory & Florence. As of the petition date, the Debtor's cash collateral is estimated at $10,750. Its cash collateral consists of inventory, bank accounts and accounts receivable. About B Mac Buffet LLC B Mac Buffet LLC, doing business as B-Mac's Buffet, operates a Southern-style buffet restaurant in Waycross, Georgia, serving dishes such as fried chicken, ham, meatloaf, pork chops, vegetables, salads, and baked goods. The establishment caters to local residents and visitors, offering a casual dining setting for families and groups. B Mac Buffet LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ga. Case No. 25-50431) on September 15, 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 Michele J. Kim handles the case. The Debtor is represented by Jon Levis, Esq. at Levis Law Firm, LLC. BE PLASTICS: Gets Interim OK to Use Cash Collateral --------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, entered an interim order granting BE Plastics Inc. authority to use cash collateral through November 4. The interim order authorized the Debtor to utilize cash collateral, including business revenues, according to the approved budget for ordinary expenses due before the final hearing. The Debtor's 30-day budget projects total operational expenses of $283,334.72. As adequate protection, secured creditors will be granted replacement liens on post-petition cash collateral and acquired property, retaining the same priority they held pre-petition. These liens, however, will not attach to Chapter 5 causes of action. The replacement liens and all pre-bankruptcy liens are subject to the fee carveout. The Debtor's authority to use cash collateral automatically terminates upon the occurrence of any of the following: conversion or dismissal of its Chapter 11 case; appointment of a Chapter 11 trustee; expiration of the authorized period without extension; or material breach of the order, including failure to comply with the budget. The court scheduled a final hearing for November 4. About BE Plastics Inc. BE Plastics Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-35842) with $100,001 to $500,000 in assets and $1,000,001 to $10 million in liabilities. Judge Hon. Eduardo V Rodriguez oversees the case. The Debtor is represented by: Robert C. Lane, Esq. The Lane Law Firm Tel: 713-595-8200 Email: notifications@lanelaw.com BENITEZ & GALLOWAY: Case Summary & Seven Unsecured Creditors ------------------------------------------------------------ Debtor: Benitez & Galloway Real Estate, LLC d/b/a B&G Real Estate 440 Black Rock Tpke Redding, CT 06896 Business Description: Benitez & Galloway Real Estate, LLC is a single-asset real estate debtor, with its principal assets located at 1 Charcoal Hill Rd, Westport, CT 06880. Chapter 11 Petition Date: October 6, 2025 Court: United States Bankruptcy Court District of Connecticut Case No.: 25-50764 Debtor's Counsel: Jeffrey M. Sklarz, Esq. GREEN & SKLARZ LLC 1 Audubon St, 3rd Fl New Haven, CT 06511 Tel: 203-285-8545 Fax: 203-823-4546 Email: jsklarz@gs-lawfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million Hernan Benitez signed the petition in his capacity as the sole member of The 6 Group LLC, the sole member of Benitez & Galloway Real Estate, LLC. A full-text copy of the petition, which includes a list of the Debtor's seven unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/NAZ4EIQ/Benitez__Galloway_Real_Estate__ctbke-25-50764__0001.0.pdf?mcid=tGE4TAMA BIG LOTS: Plan Exclusivity Period Extended to January 2, 2026 ------------------------------------------------------------- Judge J. Kate Stickles of the U.S. Bankruptcy Court for the District of Delaware extended Big Lots, Inc., and certain of its affiliates' exclusive periods to file a plan of reorganization and obtain acceptance thereof to January 2, 2026 and March 6, 2026, respectively. As shared by Troubled Company Reporter, based on a weighing of the relevant factors, there is more than sufficient cause to approve the requested extension of the Exclusive Periods: * These Chapter 11 Cases Are Large and Complex. These Chapter 11 Cases involve 19 debtor-affiliate entities. At the outset of these Chapter 11 Cases, the Debtors operated approximately 1,300 stores and employed over 27,000 employees. Moreover, the Debtors have a wide variety of parties in interest, including various vendors, customers, and landlords, many of whom have been active in these Chapter 11 Cases. * Additional Time is Necessary. The Debtors seek to protect their exclusive ability to propose a chapter 11 plan to avoid the costs and distraction associated with addressing any plans filed by third parties and to advance the goal of achieving an efficient and value-preserving conclusion to these Chapter 11 Cases. * The Chapter 11 Cases Have Been Pending for Approximately One Year. The requested extension of the Exclusive Periods is the fourth such request made in these Chapter 11 Cases and comes approximately one year after the Petition Date. During this time, the Debtors have made significant progress towards determining, in conjunction with the Committee, the most value-maximizing path forward in these Chapter 11 Cases, whether that be through a Plan, dismissal, or conversion. An extension of the Exclusive Periods would allow the Debtors to continue to build on the significant progress made thus far and facilitate an efficient wind-down of the Debtors' estates. * An Extension Will Not Prejudice Creditors. The Debtors are not seeking an extension of the Exclusive Periods to pressure or otherwise prejudice any of their creditors. Rather, the Debtors assert that avoiding the expense of a party proposing a Plan will inure to the benefit of creditors by saving estate resources. Counsel to the Debtors: Robert J. Dehney, Sr., Esq. Sophie Rogers Churchill, Esq. Andrew R. Remming, Esq. Tamara K. Mann, Esq. Casey B. Sawyer, Esq. MORRIS, NICHOLS, ARSHT & TUNNELL LLP 1201 N. Market Street, 16th Floor Wilmington, DE 19801 Tel: (302) 658-9200 Email: rdehney@morrisnichols.com aremming@morrisnichols.com tmann@morrisnichols.com srchurchill@morrisnichols.com csawyer@morrisnichols.com - and - Brian M. Resnick, Esq. Adam L. Shpeen, Esq. Stephen D. Piraino, Esq. Ethan Stern, Esq. DAVIS POLK & WARDWELL LLP 450 Lexington Avenue New York, NY 10017 Tel: (212) 450-4000 Email: brian.resnick@davispolk.com adam.shpeen@davispolk.com stephen.piraino@davispolk.com ethan.stern@davispolk.com About Big Lots Big Lots (NYSE: BIG) -- http://www.biglots.com/-- is one of the nation's largest closeout retailers focused on extreme value, delivering bargains on everything for the home, including furniture, decor, pantry and more. On Sept. 9, 2024, Big Lots, Inc. and each of its subsidiaries initiated voluntary Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 24-11967). The case is being administered by the Honorable J. Kate Stickles. Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim Securities, LLC is serving as financial advisor, AlixPartners LLP is serving as restructuring advisor, and A&G Real Estate Partners is serving as real estate advisor to the Company. Kroll is the claims agent. Kirkland & Ellis is serving as legal counsel to Nexus Capital Management LP. PNC Bank, National Association, the DIP ABL Agent and Prepetition ABL Agent, is represented by Choate, Hall & Stewart, LLP; and Blank Rome, LLP. 1903P Loan Agent, LLC, the DIP Term Agent, and the Prepetition Term Loan Agent are represented by Otterbourg, P.C. and Richards, Layton & Finger, P.A. BIG STORM BREWERY: Hires Marcus & Millichap as Real Estate Broker ----------------------------------------------------------------- Big Storm Brewery, LLC and affiliate seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to employ Marcus & Millichap Real Estate Investment Services of Florida, Inc. as real estate broker. The firm will market and sell the real property of the Debtor, Big Storm Real Estate, LLC, located at 12707 49th Street N. Clearwater, FL 33762. The firm will be paid a commission of 3.5% of the gross sales price on a direct deal and 4.5% of the gross sales price on a co-brokered deal, which represents the prevailing market rate for similar services by realtors and brokers in Pinellas County, Florida. 1.5% of the gross sales price if the buyer is Simon Tusha or any entity in which Simon Tusha has a direct or indirect ownership interest or control. If the Property is sold by buyer that is not procured by the Agent, the Agent will receive 0.5% per month marketed, capped at 1.5% total. Mr. DeFusto 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: James DeFusto Marcus & Millichap Real Estate Investment Services of Florida, Inc. 201 North Franklin Street, Suite 1100 Tampa, FL 33602 Tel: (813) 387-4700 About Big Storm Brewery, LLC Big Storm Brewery, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04026) on June 16, 2025, listing up to $50,000 in assets and between $1 million and $10 million in liabilities. Judge Roberta A. Colton oversees the case. Jake C. Blanchard, Esq., at Blanchard Law, P.A. is the Debtor's bankruptcy counsel. Briar Capital Real Estate Fund, LLC, as secured creditor, is represented by: Zachary J. Bancroft, Esq. Baker, Donelson, Bearman, Caldwell & Berkowitz, PC 200 South Orange Avenue, Suite 2050 Orlando, FL 32801 Telephone: (407) 422-6600 E-mail: zbancroft@bakerdonelson.com achentnik@bakerdonelson.com bkcts@bakerdonelson.com BLUE RIG: Seeks Chapter 7 Bankruptcy in New York ------------------------------------------------ On October 10, 2025, Blue Rig Corp. voluntarily filed for Chapter 7 bankruptcy in the Eastern District of New York. According to the filing, the company's liabilities fall in the $1 million to $10 million range. The filing notes the company has 1 to 49 creditors. About Blue Rig Corp. Blue Rig Corp. operates in the real estate industry. Blue Rig Corp.sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-55909) on October 10, 2025. In its petition, the Debtor reports estimated assets between $100,001 and $1 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Nancy Hershey Lord handles the case. BREWER MACHINE: Plan Exclusivity Period Extended to December 11 --------------------------------------------------------------- Judge Charles R. Merrill of the U.S. Bankruptcy Court for the Western District of Kentucky extended Brewer Machine & Parts, LLC's exclusive period to file a disclosure statement and plan to December 11, 2025. In a court filing, the Debtor explains that it has scheduled an auction of a significant portion of the personal property owned by the company. The personal property being auctioned serves as collateral to a number of Debtors creditors, and the application of the proceeds will clarify the position of its creditors regarding whether they hold secured or unsecured claims. In addition, once the auction sale has been completed the Debtor and its creditors will be in a better position to propose and evaluate the Debtors plan of continuing liquation. Consequently, the Debtor requests additional time to formulate its Chapter 11 plan. The Debtor requests an extension of 90 days, through and including December 11, 2025, for filing its disclosure statement and Chapter 11 plan. Brewer Machine & Parts LLC is represented by: Robert C. Chaudoin, Esq. Harlin Parker Attorneys at Law 519 E. 10th Street P.O. Box 390 Bowling Green, KY 42102 Tel: (270) 842-5611 Email: chaudoin@harlinparker.com About Brewer Machine & Parts, LLC Brewer Machine & Parts LLC manufactures woodworking and material handling equipment used in industries such as sawmills, pallet production, and cooperage. Based in Central City, Kentucky, the Company serves domestic and international markets including the U.S., Australia, Uruguay, and Saudi Arabia. Established in 1967, it offers both new and refurbished machinery. Brewer Machine & Parts LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ky. Case No. 25-40336) on May 15, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. The Debtors are represented by Robert C. Chaudoin, Esq. at HARLIN PARKER. BRIGHTLIFE ELECTRIC: Court OKs Interim Use of Cash Collateral ------------------------------------------------------------- Brightlife Electric NV, LLC received interim approval from the U.S. Bankruptcy Court for the District of Nevada to use cash collateral to fund operations. The court authorized the Debtor's interim use of cash collateral, in amounts not exceeding 125% of each line item in the budget, pending a final order. The Debtor's cash collateral consists of cash and deposit accounts in which secured creditors including Funding Metrics, Funderz Group, FundBox, and Pipe Capital, LLC hold security interests. The interim order reserves all rights of the Debtor and other parties regarding the validity of any asserted interests in the cash collateral. A copy of the order and the Debtor's budget is available at https://shorturl.at/mzqgq from PacerMonitor.com. A final hearing is scheduled for November 5. Brightlife, a Nevada-based electrical contracting business, previously obtained merchant cash advance loans from the four creditors, each of whom filed UCC-1 financing statements in Nevada. These statements suggest that Funding Metrics has first priority. As of the petition date, the Debtor owed approximately $35,000 to Funding Metrics, $57,688 to Funderz Group, $47,178 to FundBox, and $182,360 to Pipe Capital. The Debtor's total assets were valued at $210,873, of which $174,000 consists of vehicles that are not subject to UCC liens. The remaining assets potentially subject to the creditors' security interests include $10,685 in accounts receivable and $19,517 in cash. About BrightLife Electric NV Brightlife Electric NV, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No. 25-50836) on September 12, 2025, listing $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Hilary L. Barnes presides over the case. The Debtors are represented by Kevin A. Darby, Esq., at Darby Law Practice, Ltd. BW HOMECARE: S&P Raises ICR to 'CCC-' Following Debt Restructuring ------------------------------------------------------------------ S&P Global Ratings raised its issuer credit rating on BW Homecare Holdings LLC, which does business as Elara Caring, to 'CCC-' from 'SD', reflecting its belief that a conventional payment default or a debt restructuring appears to be inevitable within six months, absent unanticipated significantly favorable changes in Elara's circumstances. S&P said, "We also raised our issue-level ratings on Elara's second-out term loan to 'CC', with a '5' recovery rating, and our issue-level rating on its third-out term loan to 'C', with a '6' recovery rating. Our issue- level rating on the company's revolving credit facility due Oct. 14, 2025, was lowered to 'CCC+'. The '1' recovery rating on the revolver remains unchanged. "The negative outlook reflects our view that a conventional default or a debt restructuring that we would view as tantamount to a default appears to be inevitable within the next six months." Despite the short-term liquidity support, Elara's capital structure remains unsustainable. The company completed a debt refinancing and amendment transaction on Sept. 19, 2025, which provided liquidity relief through the remainder of 2025. As a part of the transaction, an ad hoc group of second-out term loan lenders agreed to forbear maturity and cash interest through Jan. 31, 2026, and provide new money to refinance Elara's first-out term loan at par and add cash to the balance sheet. The amended credit agreement also stipulates that Elara must enter a transaction that provides for full repayment of the second-out term loan by Jan. 31, 2026. S&P said, "Still, we believe refinancing risk for Elara's debt is substantial and a conventional default or distressed exchange appears to be inevitable within the next six months absent significantly favorable changes in its circumstances. The company remains highly leveraged, with S&P Global Ratings-adjusted leverage around 15x, and faces debt maturities on most of its capital structure in 2026. Additionally, there is uncertainty surrounding the Centers for Medicare & Medicaid Services calendar-year 2026 final rule for home health agencies, which will dictate payment policies and rates, that may impact the company's operations and profitability. "The negative outlook reflects our view that a conventional default or a debt restructuring that we would view as tantamount to a default appears to be inevitable within the next six months. "We could lower our rating if Elara fails to successfully refinance its 2026 maturities at par or if the company announces a transaction that we would view as a default according to our criteria. "Although unlikely over the next six months, we could take a positive rating action if we no longer viewed a distressed exchange or restructuring as a high probability." CHARLES MONEY: Unsecured Creditors to Split $502,400 in Plan ------------------------------------------------------------ Charles Money Logging Inc. submitted a First Amended Plan of Reorganization under Subchapter V dated October 1, 2025. The Debtor is engaged in the forestry and timber harvesting industry, with primary operations including timber cruising, harvesting (cutting), and transportation of raw logs. As of the filing of this First Amended Plan, a total of seventeen claims have been filed. Class 10 shall consist of all general, unsecured claims for which the Debtor is liable, other than the secured portions of claims listed within Classes 2 to 8; and, those claims which the Debtor disputes liability, including all MCA Creditors' claims ("Allowed Unsecured Claims"). The holders of Allowed Unsecured Claims shall receive a pro rata distribution on their allowed claims pursuant to a "pot" of no less than $502,400.00, without post-petition interest, pursuant to the terms herein. All payments shall be made pro rata based on the allowed amount of each claim. This Class is impaired, and the Debtor seeks confirmation under Section 1129(b) in the event the class does not accept the Plan. The allowed unsecured claims total $1,715,484.94. Class 11 shall consist of Equity Interests. The Holders of Class 11 Equity Interest shall be entitled to retain such interests only after Allowed Unsecured Claims are paid pursuant to the terms of Class 10. The means for effectuating this Plan will be to allow the Debtor to retain all of its personal property/chattel, which is deemed necessary for its reorganization, subject to the encumbrances and liens thereon. To the extent applicable and necessary, the Debtor will submit all or such portion of his future, disposable earnings or other further income received in the 3-year period, or such longer period not to exceed five years, to the supervision and control of the Trustee as is necessary for effective execution of this Plan. The Debtor has expressly assumed all executory contracts. A full-text copy of the First Amended Plan dated October 1, 2025 is available at https://urlcurt.com/u?l=7Z4JQ6 from PacerMonitor.com at no charge. Counsel to the Debtor: J. Kaz Espy, Esq. Collier H. Espy, Esq. The Espy Firm P.O. Drawer 6504 Dothan, AL 36302-6504 Telephone: (334) 793-6288 Facsimile: (334) 712-1617 Email: cindi@espyfirm.com About Charles Money Logging Charles Money Logging Inc. offers logging services, including timber cutting, log harvesting, and wood chipping. Charles Money Logging Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ala. Case No. 25-10442) on April 25, 2025. In its petition, the Debtor reports estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. The Debtor is represented by J. Kaz Espy, Esq., at THE ESPY FIRM. CHASSEUR REALTY: Case Summary & Six Unsecured Creditors ------------------------------------------------------- Debtor: Chasseur Realty Investors - The Drake LP 1445 Georgian Drive Moorestown, NJ 08057 Business Description: Chasseur Realty Investors - The Drake LP is a single-asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)) whose principal assets are located at 13050 Park Crossing Drive, San Antonio, TX 78217. Chapter 11 Petition Date: October 6, 2025 Court: United States Bankruptcy Court Western District of Texas Case No.: 25-52373 Debtor's Counsel: Frances A. Smith, Esq. ROSS & SMITH, P.C. 700 N. Pearl Street 1610 Dallas TX 75201 Tel: (214) 593-4976 Email: frances.smith@offitkurman.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Robert Dominy as sole member of the General Partner. A copy of the Debtor's list of six unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/B55UL4Y/Chasseur_Realty_Investors_-_The__txwbke-25-52373__0002.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/BRWRFFI/Chasseur_Realty_Investors_-_The__txwbke-25-52373__0001.0.pdf?mcid=tGE4TAMA CHICAGO BOARD: S&P Rates 2025B/C Unlimited-Tax GO Ref. Bonds 'BB+' ------------------------------------------------------------------ S&P Global Ratings assigned its 'BB+' rating to the Chicago Board of Education, Ill.'s (CPS or the board) $887.755 million series 2025B unlimited-tax general obligation (GO) refunding bonds and $307.295 million series 2025C unlimited-tax GO refunding bonds. The outlook is stable. S&P said, "We view the board's approval of a balanced budget for fiscal 2026, without incurring a short-term loan to cover budgetary gap, as fiscally responsible for CPS. However, we believe there is still a limited track record of budget oversight and political willingness to implement sufficient structural budget-balancing measures. This, along with the recent political gridlock between CPS leadership and the city management that led to board and management turnover, and the ongoing contentious relationship between the board and the CTU, reflect the district's significant challenges associated with its governance structure. In our view, this environment could introduce future uncertainties surrounding CPS' operations. The board is in search for replacements for its CEO and CFO. While we recognize the deep bench of CPS' management team, we will monitor any potential financial and operational impacts from the succession of both positions. Additionally, risk management governance challenges regarding the poorly funded pension plan (44.6%) and the pension plan actuarial assumptions and methods, which we consider as weak funding discipline, remain an ongoing elevated governance risk that could lead to higher fixed costs, albeit with dedicated revenue streams from the state and pension levy. CPS makes the full statutorily required contribution every year. "In our view, social risks are present for CPS, as reflected by significant historical enrollment declines, but these risks are not unusual for a district serving the residents of a major city given the city of Chicago's own social risks relating to demographic pressure, inequality, and access inequities to education, health care, and housing, and increasing demands on its budgetary resources. Somewhat offsetting these risks is a positive governance aspect related to the state EBF formula and the "hold harmless" provision in its distribution of state aid. Under the state's current EBF, the district's long history of enrollment decline does not negatively affect state aid, which made up 24% of general operating fund revenue in fiscal 2024. "We have also analyzed the district's environmental factors and view this as neutral in our credit rating analysis. "The stable outlook reflects our expectation that the board's reserve and liquidity positions will likely remain sufficient to support the current rating, despite the projected deficit in fiscal 2027, as the board will likely continue to work toward addressing its structural budget gap without materially weakening its reserve position. "We could consider a negative rating action within the one-year outlook period if fiscal 2026 actual results underperform the budget or if the board fails to implement sufficient structural budget-balancing measures in its fiscal 2027 budget and pushes out significant budget imbalance into outyears, resulting in the recurrence of sizable operating deficits and materially weakened reserve and liquidity positions that are no longer commensurate with the current rating. "A positive rating action is unlikely during the outlook period given the board's projected future deficits and weak liquidity position. However, we could consider a positive rating action over time if the board sustains a structurally balanced budget, a positive fund balance trajectory, and continued liquidity improvements, with a reduced amount of TANs outstanding and negative cash flow across fewer months. We would also view the successful transition of the board governance structure in 2027, without material impacts on the district's operations, favorably. Given the dependence on Illinois, upward rating potential is also predicated on the state, at a minimum, funding the EBF base and not making substantial cuts, although we view cuts as currently unlikely. We expect that the board's high fixed costs and large unfunded pension liabilities will continue to be constraining credit factors, but we believe these will not necessarily prevent upward potential at the current rating." CHICAGO PUBLIC SCHOOLS: KBRA Downgrades Bonds to BBB- ----------------------------------------------------- KBRA assigns a long-term rating of BBB- to the Unlimited Tax General Obligation Refunding Bonds (Dedicated Revenues), Series 2025B and Unlimited Tax General Obligation Refunding Bonds (Dedicated Revenues), Series 2025C of the Board of Education of the City of Chicago, IL (Chicago Public Schools, or CPS). The downgrade to BBB- (from BBB) applies to the Series 2025B and Series 2025C Bonds and certain outstanding parity series for which KBRA has not received a legal opinion provided by the Board and approved by KBRA's outside counsel stating that the property taxes securing the bonds should likely be treated as "special revenues" as defined under the U.S. Bankruptcy Code in a Chapter 9 legal proceeding. For those outstanding series with associated special revenue legal opinions, the rating is downgraded to BBB (from BBB+). The Outlook on all bonds remains Negative. The rating downgrade reflects our view that, by way of the proposed Unlimited Tax General Obligation Refunding Bond transactions--which, based on preliminary figures provided to KBRA, will include approximately $43 million in capitalized interest--Chicago Public Schools ("CPS," "the District," or "the Board") is effectively borrowing to balance its FY 2026 operating budget. KBRA has previously indicated that the Board's adoption of credit-negative policies, including borrowing for operations, would likely trigger a rating downgrade. Maintenance of a low-investment grade rating on the G.O. Bonds reflects our view that despite persistent fiscal challenges, the District will likely retain near-term market access and state support sufficient to meet essential obligations, including payment of debt service on Alternative Revenue Bonds ("ARBs") issued under the Local Government Debt Reform Act and School Code and secured by Pledged State Aid Revenues. The Negative Outlook is maintained at the new rating level, given our view that ongoing structural budgetary imbalance, weak liquidity, and heavy reliance on one-time measures, including debt restructuring for purposes of balancing the budget, continue to undermine the District's financial resilience. Further liquidity erosion, failure to secure adequate long-term revenues, significant mid-year budget revisions or a loss of market access would likely trigger further downward rating pressure. Key Credit Considerations The rating actions reflect the following key credit considerations: Credit Positives -- Sound security structure, with Pledged State Aid Revenues as the primary source of repayment and a dedicated property tax levy as a secondary source. The dedicated property tax levy, if required, is directly deposited with the Bond Trustee. -- State funding under the EBF formula includes hold harmless provisions that effectively remove enrollment decline related funding risk. -- The Board's annual teachers' pension costs are supplemented by a dedicated pension property tax levy and the State contribution for normal pension costs. Credit Challenges -- Despite significant growth in the unassigned General Operating Fund balance over the past five years (14.1% of FY 2024 expenditures), the District's very narrow cash flow position necessitates reliance on TAN borrowing to support operations at various points throughout the fiscal year. -- Mounting fiscal challenges, a new teachers' contract, and layoffs have destabilized District leadership, which is operating with an interim CEO and a newly elected/appointed 21-member Board. The District's CFO left the District in early September 2025, and the Chief Education Officer has announced her plan to leave at the end of the school year. -- Pension costs continue to grow despite a dedicated pension property tax levy and the State's assumption of normal pension costs. Rating Sensitivities For Upgrade -- Sustained improvement in the Board's liquidity position. -- Structurally balanced financial operations going forward, as projected by an annually published long-term financial plan. For Downgrade -- Further deterioration in the Board's liquidity position. -- Worsening structural budgetary imbalance. -- Non-adherence to fiscal discipline and/or Board adoption of credit negative policies, including borrowing for operations. Methodologies -- Public Finance: U.S. Local Government General Obligation Rating Methodology -- ESG Global Rating Methodology Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s). Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com. About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. CONDUENT INC: S&P Lowers ICR to 'B' Due to Slow Deleveraging ------------------------------------------------------------ S&P Global Ratings lowered its issuer credit rating on Conduent Inc. to 'B'. The outlook is stable. S&P also lowered its issue-level rating on the company's senior secured debt to 'B+' from 'BB-'. The stable outlook reflects S&P's expectation for Conduent's leverage to improve to mid-5x in 2026, with solid liquidity that includes over $250 million of cash on the balance sheet and about $250 million available on its revolving credit facility. Conduent's pace of EBITDA improvement following its divestitures has been slower than expected, which will likely keep S&P Global Ratings-adjusted gross leverage elevated above 5x through 2026. While the company has gradually improved EBITDA margins through the first half of 2025, revenues continue to decline, driven by large revenue declines from a large customer in the company's commercial solutions business. The company continues to execute on its cost-savings initiatives to remove stranded corporate costs associated with its divested assets. S&P said, "We expect Conduent to fully realize the benefits of these initiatives in 2026, with EBITDA margins improving to about 6.5%--roughly in line with our November 2024 forecast. However, our downward revision to our revenue expectations will result in lower EBITDA and leverage of about 5.5x in 2026." The company's ongoing portfolio rationalization could delay improving reported leverage and cash flow credit metrics. Conduent is looking for opportunities to divest assets it views as noncore to its business. This follows numerous divestitures since 2022, which cut the company's EBITDA and EBITDA margins. The company is still working to eliminate stranded costs related to these divestitures. S&P said, "While we do not expect a similar disruption for future divestitures, the company's leverage will remain high in 2025 with negative free operating cash flow (FOCF), and any amount of additional stranded costs or restructuring charges could keep credit metrics from improving in line with our forecast. While we expect the company to repay its outstanding revolver balance with any proceeds, the company's $520 million senior secured notes have call premiums until November 2026, which may dissuade it from any additional repayment in the near term. "Conduent has solid liquidity, and we expect FOCF will turn positive in 2026. The company refinanced its revolving credit facility in August 2025, using the facility to repay the roughly $80 million outstanding term loan. The company reduced its revolver commitments to $357 million from $550 million, but we still view the company's liquidity favorably, with about $250 million available under its revolving credit facility and about $275 million cash as of June 30, 2025, compared to about $661 million of reported debt. "We forecast negative $20 million to negative $30 million of reported FOCF in 2025 due to revenue declines, low EBITDA margins, and elevated one-time costs related to restructuring and the company's January 2025 cyber security incident. We expect the Conduent to realize the benefit of its cost-savings initiatives and reduce one-time costs in 2026, which will drive EBITDA growth and cash flow generation. Still, the timing of key milestones and payments related to the company's transportation contracts could cause swings in working capital resulting in FOCF to differ from our base-case. "The stable outlook reflects our expectation for Conduent's leverage to improve to mid-5x in 2026, with solid liquidity including over $250 million of cash on the balance sheet and about $250 million of availability on its revolving credit facility." S&P could lower the rating if Conduent's leverage remains above 6x, FOCF to debt remains below 5%, or the company's liquidity deteriorates. This could occur if: -- The company is unable to sequentially improve EBITDA margins to S&P's 7% forecast for 2026 through cost-savings initiatives and organic growth; -- S&P anticipates elevated restructuring and other one-time costs will persist; -- Working capital usage does not normalize; or -- The company prioritizes shareholder returns over debt repayment. Though unlikely over the next year, S&P could raise its rating if leverage improves comfortably below 5x and FOCF to debt increases above 10% on a sustained basis. This could occur if: -- The company executes on removing costs related to its divested assets from the business; -- Conduent returns the business to profitable organic growth while reducing one-time expenses; and -- Working capital usage normalizes COURTESY SECURITY: Case Summary & Four Unsecured Creditors ---------------------------------------------------------- Debtor: Courtesy Security, Inc. d/b/a Securelion Security Inc. 2252 Erie Court Tracy, CA 95304 Business Description: Courtesy Security, Inc., doing business as Securelion Security, provides private security services, including unarmed guards, mobile and vehicle patrol, fire watch, and golf cart patrol, across the Bay Area and Los Angeles, California. The Company serves multiple industries, including residential communities, business complexes, financial institutions, construction, and manufacturing sites, with guards undergoing extensive background checks, drug testing, and industry-specific training. Securelion Security is fully licensed, insured, and bonded, offering trial-based services and leveraging PatrolLIVE technology for 24/7 monitoring of guard performance. Chapter 11 Petition Date: October 2, 2025 Court: United States Bankruptcy Court Eastern District of California Case No.: 25-25444 Judge: Hon. Christopher D Jaime Debtor's Counsel: Robert L. Goldstein, Esq. LAW OFFICES OF ROBERT L. GOLDSTEIN 100 Bush Street, Suite 501 San Francisco, CA 94104 Tel: 415-391-8710 Fax: 415-391-8701 Email: rgoldstein@taxexit.com Total Assets: $1,020,632 Total Liabilities: $64,817 The petition was signed by Ajmal Boomwal as president. A full-text copy of the petition, which includes a list of the Debtor's four unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/5TEWVSQ/Courtesy_Security_Inc__caebke-25-25444__0001.0.pdf?mcid=tGE4TAMA CP IRIS II: Moody's Affirms 'B3' CFR, Outlook Remains Stable ------------------------------------------------------------ Moody's Ratings affirmed CP Iris Holdco II, Inc.'s (dba IPS Corporation) corporate family rating at B3 and probability of default rating at B3-PD. Moody's assigned B2 ratings to the company's proposed $810 million senior secured 1st lien term loan and $100 million senior secured 1st lien delayed draw term loan both due 2032, as well as the proposed $145 million senior secured 1st lien revolving credit facility due 2030. Moody's also assigned a Caa2 rating to the company's proposed $160 million senior secured 2nd lien term loan due 2033. The B3 ratings on the existing senior secured 1st lien term loan, senior secured 1st lien delayed draw term loan and senior secured 1st lien revolving credit facility, all due 2028, are unaffected and will be withdrawn at close. The outlook remains stable. Proceeds from the proposed transaction will be used to repay the company's existing $757 million 1st lien term loans due October 2028, $7 million in outstanding borrowings on its existing revolver due April 2028, and to fund a $185 million distribution to shareholders. Proceeds will also be used to pay fees and expenses. The ratings affirmation with a stable outlook reflects Moody's expectations that IPS Corporation will continue to grow earnings through its strong brand portfolio despite persistent demand softness across both residential and commercial construction. Moody's expects leverage to decline to below 7x debt/EBITDA by 2026 and interest coverage to remain above 1.7x EBITA/interest over the same period. The affirmation is also supported by IPS Corporation's solid margin profile and strong market position across multiple products in both its Water & Flow Management and Specialty Adhesives segments. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. RATINGS RATIONALE IPS Corporation's B3 CFR reflects its high pro forma leverage which stands at 7.2x debt/EBITDA as of June 30, 2025, exposure to cyclical residential end markets, and acquisitive growth strategy. Operating performance is largely dependent on economic activity in residential and commercial construction, which are inherently volatile. The company typically uses free cash flow generation for bolt-on acquisitions to expand operations, which are expected to continue and will create integration and execution risk. Providing an offset to IPS Corporation's leveraged capital structure and other credit challenges is the company's strong market position as a global leading manufacturer and supplier of solvent cements, plumbing and roofing products, and specialty adhesives in a highly fragmented industry. The rating is further supported by the company's strong EBITDA margin due to the critical nature of its products and its consistent free cash flow generation as the business has low capital intensity. Moody's expects IPS Corporation to maintain good liquidity over the next 12 to 18 months. Liquidity is supported by $35 million of pro forma cash on the balance sheet as of June 30, 2025 and Moody's expectations of full availability under the company's proposed $145 million revolver. Free cash flow will be negative in 2025 due to shareholder distributions, though Moody's expects positive free cash flow in 2026 through continued growth in earnings. The Caa2 rating on the 2nd lien term loan reflects the subordination to the company's 1st lien secured debt. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company increases its scale and demonstrates earnings growth. Moody's could also consider upgrading the rating if adjusted debt-to-EBITDA maintains below 6.0x, EBITA-to-interest coverage above 2.0x, and the company preserves good liquidity. The ratings could be downgraded if adjusted debt-to-EBITDA maintained above 7.0x and adjusted EBITA-to-interest expense is near 1.0x. A deterioration in liquidity including negative free cash flow, an aggressive acquisition with additional debt or significant shareholder return activity could result in downward rating pressure. The principal methodology used in these ratings was Manufacturing published in September 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. Based in Compton, California, IPS Corporation is a leading global manufacturer of solvent cements, plumbing and roofing products, and specialty adhesives. IPS Corporation is owned by Centerbridge Partners, a private equity group based in New York City. For the twelve months that ended June 30, 2025, IPS Corporation generated $528 million in revenue. CRS TRANSPORTATION: Seeks Chapter 7 Bankruptcy in Florida --------------------------------------------------------- On October 10, 2025, CRS Transportation LLC initiated a voluntary Chapter 7 bankruptcy proceeding in the Middle District of Florida, under case number #25-03672. The company disclosed assets and liabilities both within the $0 to $100,000 range and reported having between 1 and 49 creditors. About CRS Transportation LLC CRS Transportation LLC is a limited liability company. CRS Transportation LLC sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-03672) on October 10, 2025. In its petition, the Debtor reports estimated assets and liabilities up to $100,000 each. Honorable Bankruptcy Judge Jerry A. Funk handles the case. The Debtor is represented by Ismael Jose Labrador, Esq. D'YOUVILLE UNIVERSITY: S&P Lowers Revenue Bonds Rating to 'BB+' --------------------------------------------------------------- S&P Global Ratings lowered its long-term rating on Buffalo & Erie County Industrial Land Development Corp., N.Y.'s series 2020A, 2020B, and 2024A revenue bonds, issued for D'Youville University, to 'BB+' from 'BBB-'. The outlook is stable. The downgrade reflects S&P's view of D'Youville's weak financial resource ratios, with an expected large increase in liabilities to finance startup costs for a new osteopathic medicine program. S&P said, "We analyzed the university's environmental, social, and governance factors related to its market position and financial performance. We believe D'Youville faces social risks related to demographic trends in upstate New York, with a lower number of graduating high school students anticipated for the next several years. We view the university's environmental and governance factors as neutral in our credit rating analysis. "The stable outlook reflects our expectation that the university's new osteopathic medical school will open in fall 2026 and will positively affect demand. We also expect the core university will generate operations near breakeven, even as the medical school generates losses before reaching its planned capacity. Management anticipates funding these operating losses with proceeds from the upcoming debt issuance. "We could consider a negative rating action if significant additional debt beyond current plans is added to the university's consolidated balance sheet without offsetting growth in cash and investments. We could also consider a negative rating action if the medical school launch is unsuccessful, leading to weaker operations and a decline in cash and investments. "We could consider a positive rating action if the university achieves significant growth in financial resources relative to operations and debt. We would also expect the university to successfully launch the medical school in fall 2026 with improved demand metrics and operations that are near breakeven." DATAVAULT AI: Scilex Holding Holds 8.03% Equity Stake ----------------------------------------------------- Scilex Holding Company disclosed in a Schedule 13D filed with the U.S. Securities and Exchange Commission that as of September 25, 2025, it beneficially owns 15,000,000 shares of Common Stock, par value $0.0001 per share, of Datavault AI Inc., representing approximately 8.03% of the outstanding Common Stock, based on 171,842,741 shares of Common Stock outstanding as of that date, prior to the issuance of additional shares under the securities purchase agreement. The shares are held directly by Scilex Holding Company, with sole voting and dispositive power. The acquisition of these shares was effected pursuant to a Securities Purchase Agreement entered into on September 25, 2025 (the "Datavault SPA"), under which Datavault issued 15,000,000 shares of Common Stock and a pre-funded warrant to purchase 263,914,094 shares of Common Stock to Scilex Holding Company for an aggregate purchase price of $150 million. The shares were purchased with Bitcoin, with the amount determined by the spot exchange rate as published by Coinbase.com on the trading day prior to closing. The purpose of the transaction is for investment, with the Reporting Person intending to participate in corporate governance, including voting in favor of proposals related to the issuance of pre-funded warrant shares and amendments to Datavault's certificate of incorporation to increase authorized shares. Pursuant to Voting Agreements entered into concurrently with the SPA, Scilex Holding Company and other stockholders agreed to vote in favor of these proposals and granted Datavault an irrevocable proxy over the shares until the termination of the agreements. Scilex Holding Company may be reached through: Henry Ji, Chief Executive Officer and President 960 San Antonio Rd Palo Alto, Calif. 94303 Phone: (650) 516-4310 A full-text copy of Scilex Holding Company's SEC report is available at: https://tinyurl.com/3cb879wc SEC EDGAR Filing – Datavault AI Inc. Schedule 13D About Datavault AI Datavault AI Inc., headquartered in Beaverton, Oregon, develops and licenses patented platforms for AI-driven data management, valuation, and monetization. The Company offers cloud-based Web 3.0 solutions incorporating high-performance computing, generative AI agents, and secure data utilities. Datavault AI operates in the data technology and software licensing industry, providing tools for enterprise-grade data solutions focused on privacy and cybersecurity. BPM LLP's audit report dated March 31, 2025, included a "going concern" qualification, noting that the Company's ongoing operational losses, net capital deficiency, and cash flow situation cast significant doubt on its ability to continue operating. Management of the Company intends to raise additional funds through the issuance of equity securities or debt. There can be no assurance that, in the event the Company requires additional financing, such financing will be available at terms acceptable to the Company, if at all. Failure to generate sufficient cash flows from operations, raise additional capital and reduce discretionary spending could have a material adverse effect on the Company's ability to achieve its intended business objectives. As of June 30, 2025, the Company had $120.69 million in total assets, $46.62 million in total liabilities, and $74.07 million in total stockholders' equity. Cash and cash equivalents as of June 30, 2025 were $0.7 million compared to $3.3 million, as of Dec. 31, 2024. The Company recorded a net loss of $37.1 million and $46.7 million for the three and six months ended June 30, 2025 and used net cash in operating activities of $12.8 million for the six months ended June 30, 2025 vs $9.0 million for the six months ended June 30, 2024. Excluding non-cash adjustments, the primary reasons for the increase in the use of net cash from operating activities during the six months ended June 30, 2025, was related to an increase in the net loss. DEVERON CORP: Amends Forbearance Agreement With TD Bank to Dec. 12 ------------------------------------------------------------------ Deveron Corp. announced, further to its press release of April 28, 2025, the Company has entered into a first amending agreement to forbearance agreement dated October 9, 2025, with Toronto Dominion Bank amending the forbearance agreement dated April 25, 2025, in connection with the repayment of a loan advanced by the Lender, which currently has a principal amount outstanding of approximately $25 Million in term debt and drawn on an operating line of credit, pursuant to the terms of a secured credit agreement dated May 15, 2023, as amended, among the Company, its subsidiary A&L, and the Lender. Subject to the terms of the Amending Agreement, the Lender has agreed to forbear from exercising its rights and remedies under the Credit Agreement in respect of or arising out of certain defaults under the Credit Agreement, until the earlier of: (i) December 12, 2025, or (ii) the occurrence or existence of any Forbearance Termination Event (as defined in the Forbearance Agreement). The Forbearance Agreement provides for the continuation of the Company's strategic review process, which involves a review and evaluation of strategic alternatives that may be available to the Company to satisfy its short-term liquidity needs. The Company will provide an update when further disclosure is required or otherwise appropriate. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. About Deveron: Deveron is an agriculture technology company that uses data and insights to help farmers and large agriculture enterprises increase yields, reduce costs and improve farm outcomes. The company employs a digital process that leverages data collected on farms across North America to drive unbiased interpretation of production decisions, ultimately recommending how to optimize input use. For more information and to join our community, please visit www.deveron.com. DSR LAND: Case Summary & Two Unsecured Creditors ------------------------------------------------ Debtor: DSR Land, LLC 620 Dutch Lake Dr Howard Lake, MN 55349 Business Description: DSR Land, LLC is a single-asset real estate entity under 11 U.S.C. Section 101(51B) and holds fee simple ownership of a property at 650 Dutch Lake Drive in Howard Lake, Minnesota, valued at $1 million. Chapter 11 Petition Date: October 6, 2025 Court: United States Bankruptcy Court District of Minnesota Case No.: 25-43282 Judge: Hon. Katherine A Constantine Debtor's Counsel: Mary Sieling, Esq. SEILING LAW, PLLC 12800 Whitewater Dr 100, # 3201 Minnetonka MN 55343 Tel: (612) 325-1191 Email: mary@sielinglaw.com Total Assets: $1,007,500 Total Liabilities: $2,032,873 The petition was signed by David Rollins as president and owner. 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/I3PXEAA/DSR_Land_LLC__mnbke-25-43282__0001.0.pdf?mcid=tGE4TAMA EMG UTICA: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed the EMG Utica Midstream Holdings, LLC (Holdco)'s Long-Term Issuer Default Rating (IDR) at 'BB-'. Fitch has also affirmed the term loan at 'BB' with a Recovery Rating of 'RR3'. The Rating Outlook is Stable. Holdco's ratings reflect its minority stakes in the joint venture (JV) operating companies (Opco). They are supported by steady distributions from two complementary assets with a decade-long operating history in the Utica Shale. Holdco also benefits from a capital-light growth profile and strong financial metrics that provide meaningful financial flexibility. These strengths are balanced by concentrated exposure and volumetric risk. The Stable Outlook reflects Fitch's expectation that favorable production dynamics in the Utica Shale will sustain Opco performance and distributions to Holdco, with meaningful growth potential. Key Rating Drivers Established Operations with Growth Capacity: Both Opcos have a long record of relatively consistent performance through commodity cycles. Revenue is supported by fixed-fee contracts with Consumer Price Index (CPI) escalators and acreage dedications. Fitch views the dry-gas and rich-gas JV portfolio as complementary and supportive of cash flow stability. Production across the assets can respond to differing commodity fundamentals, reducing volatility. These JVs are situated in the core of the Utica Shale where Fitch expects continued growth as regional development advances. The rich-gas JV operates an integrated system across the local rich-gas value chain, with available capacity to capture incremental growth from new and existing customers, limiting the need for significant spending. Steady Distributions: Holdco benefits from a JV policy that pays out all distributable cash flow monthly, which is structurally subordinated to the JV operating expenses and required reserves. With infrastructure largely built out and no Opco debt, both JVs generate strong distributable cash flow. Fitch expects the JVs to remain unlevered over the forecast period. Despite its minority stake and non-operator role, Holdco sits on the boards of both JVs and holds consent rights over reserved matters, including changes in distribution policy, debt issuance over certain amount, and annual budgets. Fitch views this joint control as credit positive because it helps ensure adequate distributions to service Holdco's debt. Modest Leverage: Holdco's modest leverage supports its credit profile, given its small size and concentrated exposure. Fitch expects Holdco's leverage (Holdco debt over distributions received and minimal Holdco-level expenses) to remain around 3.2x during the forecast period, supported by stable distributions and modest growth spending that sustain debt service and enable incremental debt reduction. Management targets long-term leverage of 2.5x, though volume volatility and capital-allocation priorities, including debt-funded bolt-on acquisitions and shareholder dividends, could keep leverage elevated relative to the target. Concentrated Exposure: Holdco's assets portfolio has limited diversification by geography and customer base. Both JVs are located in the Ohio Utica, exposing them to elevated localized risks. Ascent Resources Utica Holdings, LLC (Ascent; BB-/Positive) is the dry-gas JV's primary customer and the top customer for the rich-gas JV, where the top three customers account for around 80% of revenue. Significant deviation from expectations or operational disruptions at major customers could increase volatility in Holdco's distributions received. Fitch expects JVs to broaden their customer base and improve counterparty credit quality as they add new customers and contracts. Major Counterparty: Fitch views Ascent's role as the JVs' major customer as generally supportive of Holdco's credit profile until they add more investment-grade customers contributing significantly to overall EBITDA. Ascent is a large natural gas producer with a focus in the Utica Shale, a track record of positive FCF generation, and a robust hedging program that supports cashflow stability. In addition, Holdco's owner, the Energy and Mineral Group (EMG, unrated), holds a significant interest in Ascent, and this common ownership enhances operating alignment between Ascent and the JVs. Though there is no explicit rating linkage between the two entities, Ascent's ratings and Outlook have credit implications for Holdco. Volumetric Risk: Both JVs have volumetric exposure, with limited volume-assurance-backed revenue, making volumes sensitive to producer timing, shifts between dry- and rich-gas acreages and ethane recovery decisions. The risk is partially mitigated by both JVs being held within the same portfolio, strong operational alignment with the major customer Ascent, and Ascent's firm transportation commitments on basin takeaway pipelines. In addition, most of the dry-gas volumes benefit from cost-of-service-like provisions that increase the rate when throughput declines. Fitch views near-term risk as relatively modest, given favorable Utica Shale production dynamics. Peer Analysis CPPIB OVM Member U.S. LLC (CPPIB OVM; BB-/Stable) owns a 35% stake in a JV that provides natural gas and NGL-related midstream services in the Appalachian Basin. CPPIB OVM is highly comparable to Holdco, as both are holding companies with minority stakes in JVs. They share a commodity focus and operate in the same basin, though CPPIB OVM's asset is slightly larger. CPPIB OVM has a more diverse customer base with its top three investment-grade customers contributing 80% of revenue. This contrasts favorably with Holdco's assets, which currently derive a significant portion of its revenue from a high-yield customer. Fitch expects Holdco's lower standalone leverage to help offset this risk. Key Assumptions - Fitch price deck for West Texas Intermediate (WTI) oil price of $65 per barrel (bbl) in 2025, $60/bbl in 2026-2027, and $57/bbl thereafter; - Fitch price deck for Henry Hub prices of $3.40 per thousand cubic feet (mcf) in 2025, $3.50/mcf in 2026, $3.00/mcf in 2027, and $2.75/mcf thereafter; - Secured Overnight Financing Rate (SOFR) as forecasted in Fitch Global Economic Outlook; - Near-term growth in processing volumes supported by the addition of new customers and available processing capacity; - Annual capex in the range of $25 million and $45 million over the forecast period; - No debt-funded acquisitions at either Holdco or JVs; - No project-level debt at the JVs. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Standalone EBITDA leverage expected to sustain above 6.0x; - Debt issuance at the JVs leading to an expectation that proportionately consolidated EBITDA leverage will be above 4.0x; - Significant deterioration in counterparty credit quality; - Failure to renew key contracts at expiration; - An increase in business risk, such as generating sizeable commodity-sensitive revenue; - Standalone EBITDA interest coverage ratio expected to sustain below 2.0x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Significant increase in JVs' customer diversification, and Holdco's standalone EBITDA leverage sustained below 4.0x; - Increase in size, as evidenced by a significant increase in distributions flows to Holdco (without debt financing such growth); - Significantly higher share of JVs' EBITDA supported by MVC. Liquidity and Debt Structure As of June 30, 2025, Holdco had a liquidity of approximately $24 million, including a cash balance of around $25,000 and around $24 million available capacity under the super priority senior secured revolving credit facility (SSRCF). Up to $25 million of the SSRCF is available for the issuance of standby letter of credit (SBLC). There was no outstanding SBLC amount as of June 30, 2025. The credit agreement requires Holdco to maintain $10 million of liquidity. Both unlevered JVs must distribute all distributable cash to the owners monthly. Fitch expects Holdco to receive sufficient distributions to service Holdco debt, with debt service coverage ratio (DSCR) comfortably above 1.10x covenant, and the super senior secured net leverage ratio remaining below 1.00x over the forecast period. The term sheet has a tiered cash flow sweep that begins when Holdco's leverage exceeds 3.25x, which should drive progressively stronger DSCR metrics over time. Issuer Profile EMG Utica Midstream Holdings LLC is a Utica-Shale-based midstream holding company established by the Energy & Minerals Group (EMG). The company's assets include EMG's minority ownership interest in two joint ventures previously formed between EMG and MPLX, LP. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor 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 Fitch does not provide ESG relevance scores for EMG Utica Midstream Holdings LLC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- EMG Utica Midstream Holdings LLC LT IDR BB- Affirmed BB- senior secured LT BB Affirmed RR3 BB EMPIRE CORE: Court OKs Interim Use of Cash Collateral ----------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York issued an interim order granting Empire Core Group, LLC authority to use cash collateral and provide adequate protection to its secured creditors. The Debtor was authorized to use cash collateral in line with its budget, subject to a 15% variance. The court found that using cash collateral was essential to avoid immediate and irreparable harm to the Debtor's operations. The court recognized that the U.S. Small Business Administration holds a first-priority lien on all of the Debtor's assets, securing a debt of approximately $150,020, and Orange Bank & Trust Company holds subordinate liens, securing debts totaling roughly $1.78 million across two loan agreements. Several other parties, including Bondex Insurance Company and International Fidelity Insurance Company, also claimed liens on the Debtor's assets, pending further investigation. The Debtor's officers, CEO Florim Lajqi and CFO Justin Kerker, affirmed that they receive compensation solely from the Debtor and that all budgeted expenses relate exclusively to the Debtor's operations. As adequate protection, the court granted replacement liens to the secured creditors, with the same priority as their pre-bankruptcy liens, excluding any recovery from Chapter 5 avoidance actions. These liens are automatically perfected as of the petition date and subordinate only to court-approved carveouts, including trustee and professional fees. The Debtor must also make monthly interest payments of $469 to the SBA and $13,236.54 to Bondex as further protection. The Debtor's authority to use cash collateral automatically terminates on the earliest of October 27; conversion or dismissal of its Chapter 11 case; confirmation of a bankruptcy plan, or modification of the interim order without the secured creditors' consent. A final hearing is scheduled for October 22. Objections must be filed by October 17. A copy of the interim order and the Debtor's budget is available at https://shorturl.at/ePzq8 from PacerMonitor.com. Orange Bank & Trust Company is represented by: Robert B. Hunter, Esq. 212 Dolson Avenue Middletown, NY 10940 Office: (845) 341-5000 Direct: (845) 341-5163 bhunter@orangebanktrust.com About Empire Core Group LLC Empire Core Group LLC formed in September 2014, is a construction management and general contracting firm that specializes in redeveloping existing properties and building new projects across the New York metropolitan area. The Company has worked with major real estate owners and operators including Blackstone Group, Rockpoint, Compass Rock, Graystar, AIMCO, Brooksville Company, CW Capital, Fortress, and The Dermot Company. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. N.Y. Case No. 25-22894) on September 22, 2025. In the petition signed by Florim Lajqi, CEO and member, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Sean H. Lane oversees the case. Erica Aisner, Esq., at Kirby Aisner & Curley, LLP, represents the Debtor as legal counsel. ENERGOS INFRASTRUCTURE: Fitch Assigns 'B+' IDR, Outlook Stable -------------------------------------------------------------- Fitch Ratings has assigned Energos Infrastructure Holdings Finance LLC (Energos) and co-borrower Energos Infrastructure Holdings Finance (US) LLC a first-time Long-Term Issuer Default Rating (IDR) of 'B+'. The proposed pari passu co-borrowed senior secured term loan and notes are rated 'BB-' with a Recovery Rating of 'RR3'. The Rating Outlook is Stable. Energos' ratings are weakly positioned at the 'B+' level as Fitch's forecasts EBITDA leverage to range around 5.1x to 5.5x, near the top of Fitch's leverage sensitivity band. The ratings also consider Energos' counterparty concentration with New Fortress Energy Inc. (NFE; 'CCC'). The Stable Outlook reflects Fitch's expectations that Energos' floating storage and regassification units (FSRUs) will remain contracted. Fitch expects charter rates to decline from recent levels per the Fitch Oil and Gas Price Deck TTF-HH basis differential (B.D.). Fitch has reviewed preliminary documentation for the new offering and expects no material changes in the final terms. Key Rating Drivers Primary Charter Counterparty is NFE: Fitch calculates Energos' current weighted average customer credit rating at 'BBB-'. While this average is acceptable for the industry, the company has counterparty concentration risk, as eight of Energos' 13 vessels are contracted to NFE. Energos generates around 40% of EBITDA from contracts with NFE under management's forecast. In contrast, the Force and Power vessels are contracted to the German Federal Ministry of Economic Affairs and Climate Change, an arm of the German government (AAA/Stable). Potential NFE Bankruptcy Scenario: Management considers EBITDA from 'CCC'-rated NFE well protected if NFE files for bankruptcy. Although NFE has a material chance of avoiding bankruptcy, Fitch expects Energos would struggle to preserve all NFE-related EBITDA in such a scenario. Energos management is prudently preparing for a possible bankruptcy, including strengthening executive-to-executive relationships with the end-user customer companies. Further, Energos management has signaled the possibility of buying out one or more of its direct contracts with NFE. Fitch notes that several of the eight vessels receiving NFE payments earn rates substantially below market prices. Most or all of these contracts would likely remain in place if NFE files for bankruptcy. However, bankruptcy outcomes are uncertain, and the FSRU industry is still young. Fitch sees execution risk in management's forecast for NFE-linked vessels under a bankruptcy scenario. Increasing Leverage and Solid Coverage: Pro forma the proposed capital structure, Fitch forecasts Energos' leverage to rise from around 5.1x at YE 2025 to around 5.5x at YE 2027. Fitch uses a probabilistic approach to consider cases where NFE may or may not file for bankruptcy. If there is a bankruptcy filing, Fitch thinks the impact on Energos' cash flows will be material but not significant. Fitch expects Energos' cash balance to grow over the forecast horizon, driven by management's 4.5x net leverage target. Fitch forecasts EBITDA interest coverage will remain around 2.5x throughout the forecast. Stable, Contracted Cash Flows: Fitch believes the contract structure protects cash flows from demand shifts in the global LNG vessel market and provides stable cash flows. Each existing charter agreement provides revenues from a fixed-fee, take-or-pay contract, paid regardless of vessel utilization or market rates. All of Energos' revenues are backed by take-or-pay contracts with an average remaining contract life of around 14 years. Operating expenses are also passed through to the counterparties. Constrained Specialty LNG Vessel Market: Energos' vessels are well positioned in the market due to limited global supply for specialty LNG vessels and long construction times for new vessels. FSRUs and Floating Storage Units (FSUs) are tailored for specific project conditions. NFE charter agreements set FSRU day rates around $80,000/day-$100,000/day, well below recent market rates of around $120,000/day -$150,000/day. The company's portfolio of 11 FSRU/FSU vessels represents about 18% of the global FSRU fleet. Market rates and the contracted/uncontracted ratios for the global FSRU fleet have shown cyclicality over its short history. Country Risk Not a Constraint: Fitch measures the relationship between cash flow generation in each country compared to hard-currency gross interest expense to determine a multinational company's applicable Country Ceiling. Energos' Country Ceiling does not constrain the IDR, given the size of its operations globally and the availability under the proposed super senior RCF relative to debt service obligations. Peer Analysis Excelerate Energy Limited Partnership (EELP; BB/Stable) is Energos' most direct peer within Fitch's midstream coverage. EELP operates globally in emerging and developed markets, offering a full range of regasification services, which includes FSRUs, infrastructure development, LNG, and natural gas supply. Both companies predominantly generate revenues from take-or-pay time charters. Pro-forma for its Jamaica assets acquisition from NFE, EELP will also own and operate a power plant, diversifying its operations. Both companies have similar geographic diversity, but EELP has significantly less counterparty concentration than Energos. Fitch forecasts EELP's leverage around 2.7x by 2025 before trending to mid-to-high 2.0x range, which is over two turns lower compared to Fitch's Energos leverage forecast. Energos' customer concentration with NFE and higher leverage drive the two notch rating difference below EELP. Key Assumptions - Fitch Oil and Gas Price Deck TTF-HH B.D. drives FSRU charter re-contracting rates as all links in the LNG infrastructure chain share in the B.D. compression; - Probabilistic approach to each event in linked outcomes of NFE bankruptcy and vessel contract rejection; - Base interest rates in line with the Fitch Global Economic Outlook; - Fitch assumes that all 13 vessels are located on their respective stations (whether harbor location for FSRUs and FSUs, or on their maritime routes for LNGCs; - No further ship acquisitions or conversions occur over the forecast period. Recovery Analysis The recovery analysis assumes the enterprise value of Energos would be maximized in a going concern (GC) scenario versus a liquidation scenario. Fitch contemplates a default scenario assuming Fitch Price Deck stress case prices occurs, causing Energos to see a sharp decline in contract rates as differentials compress and companies operating in the LNG value chain share in the cut of revenues. Fitch assumes a sustainable, post-reorganization GC EBITDA of $245 million and lower recharter rates for vessels that are redeployed. As per criteria, the GC EBITDA reflects some residual portion of the distress that caused the default. Fitch estimates Energos would receive a GC recovery multiple of 6.0x, consistent with past reorganization multiples in the energy sector. In Fitch's bankruptcy case study report "Energy, Power and Commodities Bankruptcies Enterprise Value and Creditor Recoveries" published in October 2024, the median enterprise valuation exit multiplies for 51 energy cases was 5.3x, with a wide range of multiples observed. As per Fitch's "Corporates Recovery Ratings and Instrument Ratings Criteria," the secured term loan B and senior notes can be notched up to 'RR3'/'+1' from the IDR. Energos' weighted average of the caps of the countries where it receives economic value would be RR3 in 2028 in the forecast, which per criteria, allows for Energos' instrument uplift to 'RR3'/'+1'. Fitch assumes Energos' super senior RCF would be fully drawn at bankruptcy. A 10% administrative claim is incorporated in the recovery calculation. The recovery analysis results in a 'BB-'/'RR3' rating for the proposed term loan. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - An inability of NFE to improve liquidity and credit quality; - NFE has construction/completion problems in Brazil, or has problems in material operations located in Mexican waters; - A significant decline in vessel charter rates; - EBITDA leverage above 5.5x on a sustained basis. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A significant reduction in concentration risk related to direct counterparties; - EBITDA leverage sustained below 4.0x. Liquidity and Debt Structure Fitch expects Energos to have adequate liquidity following the proposed refinancing. Under the proposed transaction, Fitch expects the proposed $150 million super senior RCF will be undrawn. As of June 30, 2025, Energos had available liquidity of around $177 million, comprised of approximately $117 million of cash with no outstanding borrowings on the existing $60 million super senior RCF. Issuer Profile Energos Infrastructure Holdings Finance LLC provides LNG delivery, storage, and regassification services to a global customer base. The company owns 13 vessels, including nine FSRUs, two FSUs and two LNGCs. 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 ----------- ------ -------- Energos Infrastructure Holdings Finance LLC LT IDR B+ New Rating senior secured LT BB- New Rating RR3 Energos Infrastructure Holdings Finance (US) LLC LT IDR B+ New Rating senior secured LT BB- New Rating RR3 F.L. SIMS FUNERAL: Case Summary & Seven Unsecured Creditors ----------------------------------------------------------- Debtor: F.L. Sims Funeral Home East Point Inc. 2968 East Point Street East Point, GA 30344 Business Description: F.L. Sims Funeral Home East Point Inc. provides funeral and cremation services, pre-planning, and grief support from its facility at 2968 East Point Street in East Point, Georgia, serving families throughout the Metro Atlanta area. Originally founded in 1943 as Lige Sims Funeral Home, the family-owned business is led by Fernandor Sims and operates three locations across the region, offering services to clients nationwide and internationally. Its operations focus on traditional ceremonies and personalized memorial services. Chapter 11 Petition Date: October 6, 2025 Court: United States Bankruptcy Court Northern District of Georgia Case No.: 25-61553 Debtor's Counsel: Paul Reece Marr, Esq. PAUL REECE MARR, P.C. 6075 Barfield Road Suite 213 Sandy Springs, GA 30328-4402 Tel: (770) 984-2255 Email: paul.marr@marrlegal.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Fernandor Sims as CEO. A full-text copy of the petition, which includes a list of the Debtor's seven unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/SMZQZAQ/FL_Sims_Funeral_Home_East_Point__ganbke-25-61553__0001.0.pdf?mcid=tGE4TAMA FAMILY INTERNATIONAL: Case Summary & One Unsecured Creditor ----------------------------------------------------------- Debtor: Family International Home Builders, LLC 7210 Gulf Blvd St Pete Beach, FL 33706 Business Description: Family International Home Builders, LLC, a Florida-based company, owns and manages the Pineapple Palms apartment complex at 7210 Gulf Blvd in Saint Petersburg, FL. Chapter 11 Petition Date: October 7, 2025 Court: United States Bankruptcy Court Middle District of Florida Case No.: 25-07399 Debtor's Counsel: Joel Aresty, Esq. JOEL M. ARESTY, PA 309 1st Ave. S. Tierra Verde, FL 33715 Tel: (305) 904-1903 Email: aresty@icloud.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Randell J. Walden Sr. as authorized member. The Debtor identified Hasani Capital LLC at 100 Ashley Dr S Suite 2125, Tampa, FL 33602, as its sole unsecured creditor with a $50,000 claim. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/YD5SYNA/FAMILY_INTERNATIONAL_HOME_BUILDERS__flmbke-25-07399__0001.0.pdf?mcid=tGE4TAMA FIRST BRANDS: Jefferies Defends Deals, Says Losses Are Manageable ----------------------------------------------------------------- Katherine Doherty and Irene Garcia Perez of Bloomberg News report that Jefferies Financial Group Inc. defended its business dealings with First Brands Group, emphasizing that its exposure to the bankrupt auto-parts supplier is minimal. The investment bank's statement came as it sought to restore investor confidence following a sharp decline in its stock price. The company's shares rose 3% on Monday, October 3, 2025, after Jefferies said the situation could lead to "some financial losses over time," but noted that the overall impact would be relatively small. The firm's stock has fallen about 25% since concerns about First Brands surfaced last month, September 2025. Jefferies' statement highlighted indirect investments tied to the auto-parts supplier, including approximately $43 million, or 5.9%, of related holdings. The company assured investors that it continues to monitor the exposure closely while maintaining confidence in its broader portfolio, the report states. About First Brands Rochester Hills, Mich.-based First Brands Group, LLC is a global supplier of aftermarket automotive parts. On September 24, 2025, the Company's non-operational special purpose entities, Global Assets LLC, Global Lease Assets Holdings, LLC, Carnaby Capital Holdings, LLC, Broad Street Financial Holdings, LLC, Broad Street Financial, LLC, Carnaby Inventory II, LLC, Carnaby Inventory Holdings II, LLC, Carnaby Inventory III, LLC, Carnaby Inventory Holdings III, LLC, Patterson Inventory, LLC, Patterson Inventory Holdings, LLC, Starlight Inventory I, LLC and Starlight Inventory Holdings I, LLC each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. Commencing on September 28, 2025, First Brands Group, LLC and 98 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. In its petition, First Brands Group LLC listed $1 billion to $10 billion in estimated assets and $10 billion to $50 billion in estimated liabilities. The cases are pending before the Hon. Christopher M. Lopez, and are jointly administered under Case No. 25-90399, and consolidated for procedural purposes only. Weil, Gotshal and Manges LLP is serving as legal counsel, Lazard is serving as investment banker, Alvarez & Marsal is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to First Brands Group. Kroll serves as the Debtors' claims agent. Gibson, Dunn & Crutcher LLP is serving as legal counsel, and Evercore is serving as investment banker to the Ad Hoc Group. FIRST BRANDS: Jefferies Updates on Bankruptcy Impact ---------------------------------------------------- In response to inquiries, Jefferies Financial Group, Inc. announced on October 8, 2025 that First Brands Group, LLC and certain of its affiliates filed voluntary petitions for Chapter 11 bankruptcy protection on September 29, 2025. First Brands is an aftermarket auto parts manufacturer that sells its products to major auto-parts retailers. Point Bonita Capital, a division of Leucadia Asset Management, manages on behalf of third-party institutional and other investors an approximately $3 billion portfolio of trade-finance assets, which is supported by total invested equity of $1.9 billion, of which $113 million, or 5.9%, is owned by LAM. Since 2019, the portfolio has included accounts receivables purchased from First Brands and arising from the sale of First Brands' products to Obligors. The purchase of receivables in this fashion is called factoring, and the Point Bonita portfolio has approximately $715 million invested in receivables that are almost entirely due from Walmart, Autozone, NAPA, O'Reilly Auto Parts, and Advanced Auto Parts, with First Brands, as the servicer, responsible for directing the Obligors' payments to Point Bonita. For almost six years until September 15, 2025, Point Bonita always had been paid by the Obligors on time and in full. On September 15, 2025, First Brands stopped directing timely transfers of funds from the Obligors on Point Bonita's behalf. In its bankruptcy filings, First Brands indicated that its special advisors were investigating whether receivables had been turned over to third-party factors upon receipt and whether receivables may have been factored more than once. "We have not yet received any information regarding the results of that investigation. We are in communication with First Brands' advisors and are working diligently to determine what the impact on Point Bonita might be. We intend to exert every effort to protect the interests and enforce the rights of Point Bonita and its investors." Separately, Apex Credit Partners LLC, a wholly owned subsidiary of Jefferies Finance LLC, 50%-owned by Jefferies, manages on behalf of third-party institutional and other investors certain CLOs that invest in broadly syndicated loans with approximately $4.2 billion in assets under management. 12 CLOs and 1 CLO warehouse managed by Apex own approximately $48 million in the aggregate of First Brands' term loans, which is approximately 1% of the CLO assets managed by Apex. Apex owns between 5% and 9.9% of the equity tranche of each of its managed CLOs plus a portion of the other senior tranches in an amount to comply with applicable securitization risk-retention rules. Jefferies owns no other securities or obligations issued by First Brands. About Jefferies Financial Group Inc. Jefferies is a leading, global, full-service investment banking and capital markets firm. With 49 offices around the world, it offers insights and expertise to investors, companies and governments. About First Brands Rochester Hills, Mich.-based First Brands Group, LLC is a global supplier of aftermarket automotive parts. On September 24, 2025, the Company's non-operational special purpose entities, Global Assets LLC, Global Lease Assets Holdings, LLC, Carnaby Capital Holdings, LLC, Broad Street Financial Holdings, LLC, Broad Street Financial, LLC, Carnaby Inventory II, LLC, Carnaby Inventory Holdings II, LLC, Carnaby Inventory III, LLC, Carnaby Inventory Holdings III, LLC, Patterson Inventory, LLC, Patterson Inventory Holdings, LLC, Starlight Inventory I, LLC and Starlight Inventory Holdings I, LLC each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. Commencing on September 28, 2025, First Brands Group, LLC and 98 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. In its petition, First Brands Group LLC listed $1 billion to $10 billion in estimated assets and $10 billion to $50 billion in estimated liabilities. The cases are pending before the Hon. Christopher M. Lopez, and are jointly administered under Case No. 25-90399, and consolidated for procedural purposes only. Weil, Gotshal and Manges LLP is serving as legal counsel, Lazard is serving as investment banker, Alvarez & Marsal is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to First Brands Group. Kroll serves as the Debtors' Claims Agent. Gibson, Dunn & Crutcher LLP is serving as legal counsel, and Evercore is serving as investment banker to the Ad Hoc Group. FIRST BRANDS: KBRA Finds Minimal Private Credit Exposure -------------------------------------------------------- KBRA releases research examining how private credit's exposure to First Brands Group LLC is minimal. Our analysis also indicates that none of the company's nearly $6 billion in broadly syndicated loans (BSL) were originated by any private credit direct lending platforms. In addition to its term loans, the company's bankruptcy petition revealed a further $2.3 billion in off-balance sheet obligations, nearly $600 million in asset-based loans from a bank, and over $800 million in supply chain financing owed to 30 unsecured creditors--primarily trade and commercial finance companies, banks, hedge funds, and other operating businesses. Overall, private credit firms had only limited exposure across the company's more than $9 billion in debt. Recent Publications -- Private Credit: A Source of Systemic Strength -- Private Credit: Q2 2025 Middle Market Borrower Surveillance Compendium--Waiting for Godot -- Private Credit: Impact of Pluralsight's Potential Restructuring Will Be Widely Dispersed and No Effect on Ratings Expected -- Private Credit: Khoros' Potential Default Sprinkled Across Private Credit -- Private Credit: KBRA-Rated Private Equity and Private Credit Firms Demonstrate Resilience Through Market Challenges About KBRA KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions. About First Brands Rochester Hills, Mich.-based First Brands Group, LLC is a global supplier of aftermarket automotive parts. On September 24, 2025, the Company's non-operational special purpose entities, Global Assets LLC, Global Lease Assets Holdings, LLC, Carnaby Capital Holdings, LLC, Broad Street Financial Holdings, LLC, Broad Street Financial, LLC, Carnaby Inventory II, LLC, Carnaby Inventory Holdings II, LLC, Carnaby Inventory III, LLC, Carnaby Inventory Holdings III, LLC, Patterson Inventory, LLC, Patterson Inventory Holdings, LLC, Starlight Inventory I, LLC and Starlight Inventory Holdings I, LLC each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. Commencing on September 28, 2025, First Brands Group, LLC and 98 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. In its petition, First Brands Group LLC listed $1 billion to $10 billion in estimated assets and $10 billion to $50 billion in estimated liabilities. The cases are pending before the Hon. Christopher M. Lopez, and are jointly administered under Case No. 25-90399, and consolidated for procedural purposes only. Weil, Gotshal and Manges LLP is serving as legal counsel, Lazard is serving as investment banker, Alvarez & Marsal is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to First Brands Group. Kroll serves as the Debtors' Claims Agent. Gibson, Dunn & Crutcher LLP is serving as legal counsel, and Evercore is serving as investment banker to the Ad Hoc Group. FOSSIL GROUP: Extends Exchange Offer, Solicitation to Oct. 15 ------------------------------------------------------------- Fossil Group, Inc. announced on October 8, 2025, that, in connection with its previously announced offer to exchange and consent solicitation with respect to its 7.00% Senior Notes due 2026, it has extended the expiration of the Exchange Offer, Consent Solicitation and its concurrent rights offering from 5:00pm New York City time on October 7, 2025 to 5:00pm New York City time on October 15, 2025. The Company intends to proceed concurrently with the UK Proceeding on the previously disclosed schedule, including the Convening Hearing scheduled for Wednesday, October 15, 2025. In addition, the Company may make effective the UK Proceeding Amendments to the Indenture for the Old Notes prior to a definitive determination that the Company is required to proceed with the UK Proceeding pursuant to the Transaction Support Agreement (and, if applicable, will make corresponding amendments to the Exchange Offer Amendments to the Old Notes Indenture). All other terms, provisions and conditions of the Exchange Offer, Consent Solicitation and Rights Offering will remain in full force and effect, and capitalized terms used but not defined herein have the meanings ascribed to them in the prospectus included in the Registration Statements (as defined herein). The Company reserves the right to terminate, withdraw, amend or further extend the Exchange Offer, the Consent Solicitation and the Rights Offering independently of each other at any time and from time to time, as described in the Registration Statements. As of 5:00pm New York City time on October 7, 2025, according to Epiq Corporate Restructuring, LLC, the Information, Exchange and Subscription Agent for the Exchange Offer, Consent Solicitation and Rights Offering, the principal amount of Old Notes had been validly tendered and not validly withdrawn (and consents thereby deemed validly given and not validly revoked) in the Exchange Offer, Consent Solicitation and Supporting Holders Exchange (as defined in the Registration Statements). 1. 7.00% Senior New Money Notes due 2026 (Participants) * CUSIP No.: 34988V304 * Principal Amount Tendered: $102,078,075 * Percentage of $150,000,000 Tendered: 68.05% 2. 7.00% Senior Non-New Money Notes due 2026 (Participants) * CUSIP No.: 34988V304 * Principal Amount Tendered: $5,842,425 * Percentage of $150,000,000 Tendered: 3.90% 3. Total - 7.00% Senior Notes due 2026 * CUSIP No.: 34988V304 * Principal Amount Tendered: $107,920,500 * Percentage of $150,000,000 Tendered: 71.95% The Company has filed a registration statement (including a prospectus) on Form S-3, as amended (File No. 333-290139), and a registration statement (including a prospectus) on Form S-4, as amended (File No. 333-290141) (together with the S-3 Registration Statement, the "Registration Statements"), in connection with the Exchange Offer, Consent Solicitation and Rights Offering with the U.S. Securities and Exchange Commission. Before you invest, you should read the prospectus dated September 25, 2025 in the Registration Statements, any prospectus supplement thereto, and other documents the Company has filed with the SEC for more complete information about the Company and the offerings. You may get these documents for free by visiting EDGAR on the SEC website (www.sec.gov). Alternatively, Epiq Corporate Restructuring, LLC will arrange to send you the prospectus if you request it by emailing registration@epiqglobal.com (with the subject line to include "Fossil") or via phone at +1 (646) 362-6336. Any questions regarding the terms of the transactions contemplated by the Registration Statements may be directed to Cantor Fitzgerald & Co., as dealer manager, via email at Ian.Brostowski@cantor.com (with the subject line to include "Fossil") or phone at +1 (212) 829-7145; Attention: Tom Pernetti and Ian Brostowski. FTX TRADING: Prager Metis Settles With Victims Over 'Clean' Audit ----------------------------------------------------------------- Martina Barash of Bloomberg Law reports that Prager Metis CPAs LLC has reached a proposed settlement with FTX and investors who claim they were harmed by the cryptocurrency exchange's collapse, according to a filing in the U.S. District Court for the Southern District of Florida. The accounting firm had been accused of providing a misleadingly "clean" 2020 audit for both FTX Trading and FTX US. While the proposed settlement aims to resolve those class action claims, the exact amount Prager Metis has agreed to pay has not been disclosed. The deal represents a significant development in ongoing litigation surrounding FTX's financial reporting and the role of its external auditors, the report states. The parties indicated that a motion for preliminary court approval—expected to include detailed terms of the settlement—will be filed within approximately 90 days. If approved, the agreement could mark one of the first major auditor settlements linked to the FTX collapse, the report relays. About FTX Trading Ltd. FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10 showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The official committee of unsecured creditors tapped Paul Hastings as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as Delaware and conflicts counsel; FTI Consulting, Inc. as financial advisor; and Jefferies, LLC as investment banker. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. FUNDIMENSION LLC: Unsecureds Will Get 12.64% of Claims in Plan -------------------------------------------------------------- Fundimension LLC submitted an Amended Disclosure Statement for Small Business describing Chapter 11 Plan dated October 2, 2025. The Plan is a five-year plan and consists of 5 classes, 4 secured, 1 unsecured and 3 priority tax claims. Only Classes 1 and 5 are impaired. The Plan has been amended by the increase in the distribution to the unsecured creditors (Class 5) from 7.63% to 12.64% and the commencement of payment on the effective date of the Plan as opposed to commencement in month 25 of the plan, as proposed in the original Plan. The total dollar distribution to the unsecured class has been increased from $92,040.16 to $144,000.00. In addition to setting forth the change in the treatment of the unsecured creditors (Class 5), the Disclosure Statement has been amended by the addition of language on page 20, "IV B II. Treatment of non-accepting classes of secured claim, general unsecured claims and interests" pertaining to equity retention and the application of the Absolute Priority Rule. Accordingly, the only amended class treatment in this Amended Disclosure Statement pertains to Class 5. The treatment of the other four classes and the three tax claims is unchanged from the original Disclosure Statement. Class 5 consists of Seven General Unsecured Creditors in the amount of $1,194,106.84. Two creditors hold two claims that total $1,139,583.00 or 94% of the class dollar amount. West Town (now Capital) holds a claim in the agreed amount of $650,497.68. This number resulted from the bifurcation of a loan, with a balance of $954,417.38 (POC-9) into a secured portion, treated in Class 1 of the Plan in the amount of $303, 919.70 and an unsecured portion in the amount of $650,497.68. The other large unsecured claim is held by the SBA in the amount of $489,086.56 (POC-3). The SBA loan was entered into in May 2020 (and then modified in August 2020, to increase the loan amount from $150,000.00 to $500,00.00), with the customary Note and Modified Note, Security Agreement and Modified Security Agreement and UCC-1 filing. The intent was to secure the SBA loan with all of Debtor's unencumbered assets, but there were none. West Town Bank's (now Capital) UCC lien dates from 2017 and has priority over the SBA 2020 loan and its UCC-1. An agreed order has been entered at DE 121 sustaining Debtor's objection to SBA's proof of claim (POC-3), reclassifying the entire claim of $489,086.56 as unsecured. This class will receive a total distribution of $144,000.00 up from $92,040.16, as proposed in the original Plan. The percentage of distribution is now 12.64%, up from 7.63%. The purposed distribution is more than they would receive in a chapter 7 liquidation. Distribution will be made through a step-up payment scheme in 20 quarterly payments over 60 months commencing on the Plan Effective Date, compared to previously proposed commencement of payments in month 25 of the Plan. The distribution of the $144,000.00 is through a three step payment scheme over 60 months in 20 quarterly payments of: $3,000.00 per quarter in years one and two for each of eight quarters for a total of $24,000.00; followed by $6,000.00 per quarter in year three for each of four quarters for a total of $24,000; followed by $12,000.00 per quarter in years four and five in each of eight quarters, for a total of $96,000.00. This class is impaired. Payments and distributions under the Plan will be funded by income generated from the revenues received from the Debtor's operation of its arcade and entertainment center as shown in the attached Projections. The post-confirmation management of the Debtor will remain Joyce Alarcon-Frohman as Managing Partner. A full-text copy of the Amended Disclosure Statement dated October 2, 2025 is available at https://urlcurt.com/u?l=eEe8Q9 from PacerMonitor.com at no charge. About FunDimension LLC FunDimension LLC offers a wide range of attractions including arcade games, laser tag, bumper cars, duckpin bowling, rock climbing, virtual reality, and an e-gaming. FunDimension LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-20351) on Oct. 4, 2024. In the petition filed by Joyce Alarcon-Frohman, as managing partner, the Debtor reported total assets of $514,619 and total liabilities of $1,773,782. Bankruptcy Judge Corali Lopez-Castro oversees the case. The Debtor is represented by: Chad Van Horn, Esq. VAN HORN LAW GROUP, P.A. 500 NE 4th Street, Suite 200 Fort Lauderdale, FL 33301 Tel: (954) 765-3166 Email: chad@cvhlawgroup.com GENERAL ENTERPRISE: BoltRock Holds 31.72% Stake as of Sept. 30 -------------------------------------------------------------- BoltRock Holdings LLC, disclosed in a Schedule 13D (Amendment No. 1) filed with the U.S. Securities and Exchange Commission that as of September 30, 2025, it beneficially owns 4,030,026 Common Shares, which consists of: (i) 2,416,667 Common Shares held directly, (ii) 318,913 Common Shares issuable upon conversion of 95,674 Series C Shares, (iii) 833,334 Common Shares issuable upon conversion of a Convertible Note, and (iv) 461,112 Common Shares issuable upon exercise of certain warrants held by the Reporting Person, of General Enterprise Ventures, Inc.'s Common Stock, par value $0.0001 per share, representing approximately 31.72% of the outstanding common shares. The beneficial ownership calculation assumes: (i) conversion of Series C Shares into Common Shares, (ii) exercise of certain warrants, (iii) conversion of the Convertible Note and iv) that no other person has converted or exercised securities into the Common Shares. The reported ownership also reflects the 1-for-6 reverse stock split of the Issuer's Common Stock and Series A Preferred Stock effective August 28, 2025. BoltRock Holdings LLC may be reached through: Craig A. Huff, Managing Member 712 5th Avenue, 22nd Floor New York, N.Y. 10019 Phone: (212) 735-2691 A full-text copy of BoltRock Holdings' SEC report is available at: https://tinyurl.com/yc3mcasd About General Enterprise Headquartered in Cheyenne, Wyo., General Enterprise Ventures, Inc. is an environmentally sustainable flame retardant and flame suppression company for the residential home industry throughout the United States and international markets. The Company acquired Mighty Fire Breaker, LLC on April 13, 2022, and formed Mighty Fire Breaker UK Ltd. on November 14, 2022. MFB owns 39 patents and patents pending for environmentally sustainable flame retardant and flame suppression technology. MFB's products are currently being sold to fire departments in the State of California. San Mateo, California-based WWC, P.C., the Company's auditor since 2024, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that Company has suffered recurring losses from operations and has a working capital deficit that raise substantial doubt about its ability to continue as a going concern. The Company has incurred losses since inception and has a net loss of approximately $6.9 million and revenue of $0.8 million for the year ended December 31, 2024. The Company also has a working capital deficiency of approximately $0.5 million as of December 31, 2024. In addition, the Company has been dependent on related parties to fund operations and has an amount owing to related parties of $0.6 million outstanding at December 31, 2024. As of June 30, 2025, the Company had $8.69 million in total assets, $6.50 million in total liabilities, and $2.19 billion in total stockholders' equity. GOAT HOLDCO: Moody's Affirms 'B2' CFR, Outlook Stable ----------------------------------------------------- Moody's Ratings affirmed the ratings of Goat Holdco, LLC (dba "Barnes Aerospace" or "Barnes"), including the Corporate Family Rating of B2 and Probability of Default Rating of B2-PD. Moody's also affirmed the B2 ratings on the company's backed senior secured first lien bank credit facilities and senior secured notes. The outlook is stable. The ratings affirmation reflects Moody's expectations that debt/EBITDA will decline to 6.0x over the next 12 to 18 months through a combination of debt repayment and earnings growth. Moody's expects that the company will proactively use a portion of the ample cash balance post the separation transaction to reduce debt. Moody's also expects that earnings growth will be driven by strong demand and continued margin improvement that will contribute to further de-leveraging. The company will have a sizable cash balance at transaction close, bolstering the company's liquidity and providing funds for potential acquisitions. RATINGS RATIONALE The company's B2 CFR reflects its very high financial leverage. Moody's estimates pro forma adjusted debt/EBITDA of approximately 6.9 times, including partial credit for cost synergies and expected debt repayment, following the pending separation of the company's Barnes Industrial business. Moody's expects that the company will de-lever with debt/EBITDA improving to around 6.0x by the end of 2026. Moody's expects that the company will benefit from continued strong aerospace & defense sector demand, particularly in the aeroengine business. During the first eight months of 2025 the Barnes Aerospace business has exhibited EBITDA margin expansion due to strong demand. Moody's also expects that the company will continue to focus on meaningful margin improvement as it continues to focus on its Value Creation Plan. Moody's also considers the top-line stability provided by the company's aftermarket business. The company also benefits from its strong and defendable market position as a provider of a wide range of engineered products. Barnes' products are sold across a diverse set of aerospace markets globally. Moody's notes that ongoing supply chain constraints remain a challenge in the sector. However, Moody's expects the company, similar to aerospace peers, to continue to maneuver through these challenges. The stable outlook is supported by Moody's expectations that the company will improve earnings over the next 12 to 18 months, supporting prospective deleveraging and a degree of revenue visibility provided by the company's strong backlog. Barnes' very good liquidity is supported by the company's ample cash balances post receipt of proceeds from the Barnes Industrial separation as well as Moody's expectations of healthy annual free cash flow in 2026 and beyond, particularly once it has paid 2025 transaction and stand-alone costs as well as those incurred to support a higher prospective EBITDA margin. The company has an undrawn $300 million revolving credit facility with ample financial maintenance covenant headroom. There are no sizable debt maturities until 2030 and 2032, when the revolver expires and the term loan and notes mature, respectively. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded if Barnes sustains an EBITDA margin in the mid 20% or higher level and consistently generates strong free cash flow. Conservative financial policies including sustaining debt/EBITDA below 5.0x and EBITA/interest above 2.0x could lead to a ratings upgrade. The ratings could be downgraded if debt/EBITDA remains at or above 6.5x or the company demonstrates a more aggressive financial policy including debt-funded acquisitions or dividends, resulting in increased leverage or weakened liquidity. EBITA-to-interest of below 1.0x and weakening cash generation could also result in lower ratings. The principal methodology used in these ratings was Aerospace and Defense published in July 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. Barnes Aerospace is a leading provider for the full life-cycle supply and repair of complex aeroengine components. The Barnes global facility footprint provides responsive component repair and overhaul (CRO) services for both commercial and defense aeroengine platforms and provides value-added solutions to OEMs, MROs, and airlines. In addition, Barnes manufactures engine components with leading precision machining, fabrication, and assembly capabilities. Pro forma for the separation of Barnes Industrial, LTM revenue was approximately $1 billion. GOLD COAST MERIDIAN: Seeks Chapter 7 Bankruptcy in Georgia ---------------------------------------------------------- Gold Coast Meridian LLC filed a 7 chapter bankruptcy in the Northern District of Georgia bankruptcy court on October 10, 2025. The bankruptcy petition showed liabilities in the range of $100,001-$1,000,000. Gold Coast Meridian LLC reports that the number of creditors is in the range of 1-49. About Gold Coast Meridian LLC Gold Coast Meridian LLC is a limited liability company. Gold Coast Meridian LLC sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-61836) on October 10, 2025. In its petition, the Debtor reports estimated assets up to $100,000 and estimated liabilities between $100,001 and $1 million. Honorable Bankruptcy Judge Barbara Ellis-Monro handles the case. The Debtor is represented by Ian M. Falcone, Esq. of The Falcone Law Firm, P.C. GYLMAR DEVELOPMENTS: Gets Extension to Access Cash Collateral ------------------------------------------------------------- Gylmar Developments, Inc. received second interim approval from the U.S. Bankruptcy Court for the Southern District of Florida to use cash collateral through October 30. The second interim order signed by Judge Robert Mark authorized the Debtor to use cash collateral to pay the amounts expressly authorized by the court, including payments to the U.S. trustee; 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 SouthState Bank, N.A. The Debtor projects total operational expenses of $4,757.00 for October. SouthState Bank, successor by merger to CenterState Bank, N.A., will have a perfected post-petition lien on the cash collateral, with the same validity, priority and extent as its pre-bankruptcy lien. As additional protection, the Debtor will continue its monthly payments of $2,307 to SouthState Bank, due on the 20th day of each month. Such payments will continue until further order of the court regarding adequate protection payments, confirmation of a Chapter 11 plan, or the dismissal or conversion of the Debtor's Chapter 11 case, whichever occurs first. The next hearing is set for October 30. About Gylmar Developments Inc. Gylmar Developments, Inc. is a Miami-based corporation headquartered at 8485 NW 54th Street. Gylmar Developments sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-18606) on July 2, 2025. In its petition, the Debtor reported estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Robert A. Mark handles the case. Michael S. Hoffman, Esq., is the Debtor's legal counsel. SouthState Bank, as secured creditor, is represented by: Eric S. Golden, Esq. Burr & Forman, LLP 200 S. Orange Avenue, Suite 800 Orlando, FL 32801 Phone: (407) 540-6600 Fax: (407) 540-6601 egolden@burr.com mlucca-cruz@burr.com HARDWOOD RESTAURANT: Seeks Chapter 11 Bankruptcy in California -------------------------------------------------------------- On October 10, 2025, Hardwood Restaurant Holdings LLC voluntarily filed for Chapter 11 bankruptcy in the Central District of California. Court documents indicate the company's liabilities fall between $100,001 and $1 million, with 50 to 99 creditors listed. About Hardwood Restaurant Holdings LLC Hardwood Restaurant Holdings LLC is a limited liability company. Hardwood Restaurant Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-19049) on October 10, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100,001 and $1 million each. Honorable Bankruptcy Judge Neil W. Bason handles the case. The Debtor is represented by Michael Jay Berger, Esq. HARROW INC: Fitch Assigns 'B-' LongTerm IDR, Outlook Stable ----------------------------------------------------------- Fitch Ratings has assigned a final Long-Term Issuer Default Rating (IDR) of 'B-' to Harrow, Inc. The Rating Outlook is Stable. Concurrently, Fitch has assigned a final rating of 'B' with a Recovery Rating of 'RR3' to Harrow's $250 million of 8.625% senior unsecured notes due September 2030. The assignment of the final ratings follows the receipt of documentation conforming to information already received and the completion of the debt issue, the proceeds of which were used to pay down outstanding debt and provide cash for business development and general corporate purposes. The final ratings are the same as the expected ratings assigned on Sept. 8, 2025. Key Rating Drivers Limited Market Focus: Harrow's focus on the U.S. ophthalmic pharmaceutical market is a strategic strength, supporting deep market penetration, efficient sales deployment, and strong brand equity among eye care providers. Its vertically integrated platform includes FDA-approved brands, compounded formulations, and biosimilar licenses. This has enabled recent product launches and expanded Harrow's reach, particularly in retina biologics. This specialization allows the company to tailor programs and distribution to the unique needs of ophthalmology and optometry practices. However, this narrow therapeutic and geographic focus limits diversification. It also increases exposure to sector-specific risks, such as reimbursement changes, regulatory scrutiny, and competitive pressures within ophthalmology. Fitch expects the majority of Harrow's 2025 revenue to come from its top-three branded products, and international revenue remains immaterial despite out-licensing. Reliance on a single therapeutic area and domestic market heightens vulnerability to external shocks. Expansion into adjacent areas or international markets could mitigate concentration risk. Constrained Flexibility; High Leverage: Harrow's capital structure is based on Fitch's estimate that CFO will remain very low over the near term due to a slow cash-conversion cycle. Fitch estimates EBITDA leverage will improve faster with revenue opportunities from existing and newly acquired products. Debt-service costs are material, and acquisitions or delays in product launches could further pressure liquidity, requiring additional financing. Hence, Fitch believes Harrow will depend on a new secured credit facility to fund working-capital investment. Governance Concerns: Harrow's governance profile presents notable risks, with founder-led management, limited independent board oversight, and recurring related-party transactions. Regulatory risk remains elevated due to FDA warning letters and ongoing compliance issues at its 503B outsourcing facility. While remediation efforts are underway, Fitch believes enhanced transparency, board independence, and risk management are critical for improving investor confidence and mitigating governance concerns. High Customer, Supplier Concentration: Two distributor customers accounted for 94% of accounts receivable, and two suppliers provided 42% of active pharmaceutical ingredients, in 2024. Sales are dominated by a few large distributors, exposing Harrow to potential disruption if a key relationship is lost. Recent incidents, such as a distributor cybersecurity event, have had an impact on cash flow and sales. Harrow is negotiating with additional specialty pharmacies to reduce this risk, but dependency remains high. Modest Market Position, Small Scale: Over half of sales derive from lower-market-share products. Revenue and EBITDA scale are limited, resulting in modest economies of scale and resilience to competition. Harrow remains small versus major ophthalmic players despite strong brand recognition. ImprimisRx has the highest Net Promoter Score among compounders. Scale limitations may affect negotiating leverage with payors, suppliers and distributors. The bolt-on acquisition and biosimilar strategies aim to build scale, but execution risk remains. Limited Organic Growth Potential: Harrow's commercial portfolio is broad across anterior and posterior segment indications, but its pipeline is modest, with limited late-stage R&D. The most transformative asset, MELT-300, which is the subject of a pending acquisition, is not expected to be launched until FY 2028. The current portfolio is commercially sound, while limited near-term development activity constrains long-term organic growth potential. Reimbursement Risk: Harrow's IHEEZO and TRIESENCE medications are reimbursed under Medicare Part B. Both are administered primarily in office settings and have permanent J-Codes, supporting consistent reimbursement. TRIESENCE's surgical and non-surgical indications allow continued Ambulatory Surgical Center payment beyond the pass-through window, per Centers for Medicare & Medicaid Services policy. The Inflation Reduction Act may affect pricing, but access programs have driven volume growth. A mix of reimbursed and cash-pay products contributes to gross-to-net variability and exposes Harrow to shifting payer dynamics. Peer Analysis Harrow, Inc.'s closest rated peers include Mallinckrodt plc (B+/ROP) and Bausch & Lomb Corporation (BLCO; SCP: b+), given their focus on specialty pharmaceuticals and similar U.S. market exposure. Harrow operates at a significantly smaller scale, with forecast 2025 revenue of less than $300 million compared with about $2.0 billion for Mallinckrodt and approximately $4.8 billion for BLCO. Harrow has demonstrated strong top-line growth and improved gross profit between 2024 and 2025, but its financial profile remains weak, with continued net losses and very modest FCF, limiting financial flexibility. Mallinckrodt has shown signs of stabilization, narrowing net losses and generating $47 million in FCF in 2024. BLCO benefits from diversification across consumer health and prescription pharmaceuticals and moderate regulatory risk, though its sole focus on eye health limits breadth versus peers. BLCO's ratings are constrained by partial ringfencing and shareholder dynamics. Key Assumptions - Revenue CAGR of approximately 25% through 2028 (the forecast period), driven primarily by volume growth in IHEEZO and VEVYE in 2025 and 2026 and the recent acquisition of two opthalmology biosimilars from Samsung; - EBITDA margins remain flat relative to 2024 margins over the forecast period; - Working-capital investment remains a constraint on the cash-conversion cycle over the near term, and improves with Harrow's expanding product portfolio; - Milestone payments are reflected in other investing cash flows at approximately 75% of management's guidance, reflecting lower revenue growth; - Secured credit facility is available to bridge working-capital needs, and is assumed to be used in 2026 and 2027; borrowing costs assumed at SOFR + 1.5%; - Capital expenditures are relatively modest at less than 1% of revenues over the forecast period; - Issuance of $250 million of 8.625% senior unsecured debt to refinance existing debt; no debt amortization over the forecast period; - Investments in additional licenses or assets of $5 million in 2026 and 2027 have been assumed, but may increase with improved CFO; - Cash dividends or share repurchases are not assumed. Recovery Analysis The recovery analysis assumes that Harrow would be considered a going concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch estimates a going concern enterprise value (EV) available for distribution of $149 million after an allocation of $40 million related to an assumed level of a secured revolving credit facility. Fitch has also deducted an amount of 10% against this value for administrative claims resulting in total EV available for distribution of $189 million. The going concern EV is based upon estimates of post-reorganization EBITDA and the assignment of an EBITDA multiple (see below). Fitch estimates Harrow's going concern EBITDA at $35 million, which is roughly 33% lower than the forecasted 2025 EBITDA. The assumed going concern EBITDA reflects a scenario where Harrow faces a decline in both cash flow and revenues caused by loss of key customers, severe supply chain disruption and competitive pricing pressure, which it cannot offset with new product launches. Internal liquidity is inadequate to fund operations, forcing the company to seek concessions from its lenders. Fitch applies a waterfall analysis to the going concern EV based on the relative claims of the debt in the capital structure. Fitch assumes that, in a bankruptcy scenario, the company would draw all of the secured revolving credit facility (RCF), which has a limit of $40 million. The senior unsecured debt of $250 million has recovery prospects in a reorganization scenario and is rated 'B'/'RR3', one notch above the IDR. Fitch assumes a recovery EV/EBITDA multiple of 6.0x for Harrow. This is at the low end of the range of 6.0x to 7.0x that Fitch has typically used for pharmaceutical manufacturers. However, Harrow is less diversified than many Fitch-rated manufacturing peers. Fitch observes that the average forward public market trading multiples for small pharmaceutical companies varies significantly depending on sub-industry and size, but falls in the range of 7x to 10x, with some trading higher at times. If Harrow were to issue senior secured debt, such issuance may result in a downgrade of the long-term debt and recovery ratings on the senior unsecured notes. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Significant and sustained decline in operating performance due to increased competition, regulatory setbacks, or inability to obtain or maintain regulatory approvals for key products and pipeline candidates; - Persistent weakness in cash flow conversion that undermines liquidity and financial flexibility reflected in a CFO-capex/debt ratio at or below zero; - Primary dependence on external sources of liquidity to fund operating or investing activities; - EBITDA leverage persistently above 6.0x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustained improvement in operating profitability, evident from higher EBITDA margins driven by successful commercialization of new and existing products and effective cost management; - Improving cash flow conversion reflected in CFO-capex/debt of 3% or greater; - EBITDA leverage durably below 5.0x; - Increased diversity and independence of the board of directors. Liquidity and Debt Structure Harrow's primary source of liquidity is its cash balance, which Fitch estimates at $67 million as of June 30, 2025 on a pro forma basis following the recent notes sale. The cash-conversion cycle has been weak due to high debt-service obligations, elevated operating and R&D expenses, and working-capital demands. Fitch anticipates many of these pressures will persist near term. Key barriers to accelerating cash conversion include pricing power concentration among a limited number of wholesalers and PBMs, given Harrow's narrow product portfolio. As a result, cash flow from operations may not be sufficient to support meaningful growth while comfortably servicing debt without additional capital. Historically, Harrow has relied on equity and debt financing to fund operations and investments. Liquidity may improve with revenue growth from products like VEVYE and IHEEZO, which could support asset-based financing. Fitch expects Harrow to have adequate liquidity through its cash balance and access to the new secured RCF. Issuer Profile Harrow is a U.S.-based eyecare pharmaceutical company focused on the discovery, development, and commercialization of ophthalmic therapies. It serves over 10,000 healthcare providers nationwide and offers a broad portfolio of branded and compounded ophthalmic products through its ImprimisRx division. Summary of Financial Adjustments Fitch has adjusted historical and forecast EBITDA to reflect the effects of stock-based compensation, impairment of intangible assets, investment losses, gains and losses on the sale/disposal of assets, and other nonrecurring expenses and income. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor 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 Harrow, Inc. has an ESG Relevance Score of '4' for Governance Structure due to its founder-led board, limited independent oversight, and recurring related-party transactions involving affiliated entities. These governance characteristics have a direct and standalone impact on the credit profile as they raise concerns about transparency, accountability and risk management, which has a negative impact on the credit profile and is relevant to the rating in conjunction with other factors. Harrow, Inc. has an ESG Relevance Score of '4' for Exposure to Social Impacts due to pressure to contain healthcare spending growth, a highly sensitive political environment, and social pressure to contain costs or restrict pricing, which has a negative impact on the credit profile and is relevant to the rating 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 ----------- ------ -------- ----- Harrow, Inc. LT IDR B- New Rating B-(EXP) senior unsecured LT B New Rating RR3 B(EXP) HELIUS MEDICAL: Fusion Summer, Chee Choon Wee Hold 17% Stake ------------------------------------------------------------ Fusion Summer Limited and CHEE Choon Wee, disclosed in a Schedule 13D filed with the U.S. Securities and Exchange Commission that as of September 18, 2025, they beneficially own 6,830,402 shares of Class A Common Stock, of Helius Medical Technologies, Inc., representing 17.0% of the 40,295,612 shares outstanding as of September 24, 2025. The shares consist of 6,830,402 shares held directly by Fusion Summer Limited. CHEE Choon Wee is the ultimate controlling person of Fusion Summer Limited and may be deemed to share the power to vote and dispose of these securities. The securities were acquired in connection with a private placement financing transaction (PIPE Transaction), and CHEE Choon Wee was appointed Executive Chairman of the Issuer's board of directors. Fusion Summer Limited may be reached through: CHEE Choon Wee, Director C/O Helius Medical Technologies, Inc., 642 Newtown Yardley Rd #100 Newtown, P.A. 18940 Phone: (215) 944-6100 A full-text copy of Fusion Summer Limited's SEC report is available at: https://tinyurl.com/5ffkjtr6 About Helius Medical Headquartered in Newtown, Pennsylvania, Helius Medical Technologies, Inc. (www.heliusmedical.com) is a neurotechnology company dedicated to neurological wellness. The Company's mission is to develop, license, or acquire non-implantable technologies aimed at reducing the symptoms of neurological disease or trauma. Its flagship product, the Portable Neuromodulation Stimulator (PoNS), is an innovative, non-implantable medical device consisting of a controller and a mouthpiece that delivers mild electrical stimulation to the surface of the tongue, offering treatment for gait deficits and chronic balance deficits. In its report dated March 25, 2025, the Company's auditor since 2022, Baker Tilly US, LLP, issued a "going concern" qualification, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has recurring losses from operations and an accumulated deficit, expects to incur losses for the foreseeable future, and requires additional working capital. These factors raise substantial doubt about their ability to continue as a going concern. As of March 31, 2025, Helius Medical Technologies had $3.5 million in total assets, $2.2 million in total liabilities, and total stockholders' equity of $1.3 million. HELIUS MEDICAL: Solana Rocket Holds 9.99% of Class A Common Shares ------------------------------------------------------------------ Solana Rocket Holdings Limited and CHUNG Wai Shing, disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of September 18, 2025, they beneficially own 4,040,871 shares of Class A Common Stock of Helius Medical Technologies, Inc., representing 9.99% of the 40,295,612 shares outstanding as of September 24, 2025. The amount beneficially owned consists of 3,887,319 shares of Common Stock, certain pre-funded warrants to purchase up to 10,936,107 shares of Common Stock, and certain cash stapled warrants to purchase up to 14,823,426 shares of Common Stock, all held directly by Solana Rocket Holdings Limited. CHUNG Wai Shing is the controlling shareholder of Solana Rocket Holdings Limited and, as such, may be deemed to beneficially own the securities reported herein. Due to the Beneficial Ownership Blocker, the Reporting Persons' ownership is capped at 9.99% of the outstanding shares of Common Stock. Solana Rocket Holdings Limited may be reached through: Cheng Rutang, Director 3rd Floor, J & C Building, Road Town Tortola, British Virgin Islands, VG1110 852-39598000 A full-text copy of Solana Rocket Holdings Limited's SEC report is available at: https://tinyurl.com/57t5dhbm About Helius Medical Headquartered in Newtown, Pennsylvania, Helius Medical Technologies, Inc. (www.heliusmedical.com) is a neurotechnology company dedicated to neurological wellness. The Company's mission is to develop, license, or acquire non-implantable technologies aimed at reducing the symptoms of neurological disease or trauma. Its flagship product, the Portable Neuromodulation Stimulator (PoNS), is an innovative, non-implantable medical device consisting of a controller and a mouthpiece that delivers mild electrical stimulation to the surface of the tongue, offering treatment for gait deficits and chronic balance deficits. In its report dated March 25, 2025, the Company's auditor since 2022, Baker Tilly US, LLP, issued a "going concern" qualification, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has recurring losses from operations and an accumulated deficit, expects to incur losses for the foreseeable future, and requires additional working capital. These factors raise substantial doubt about their ability to continue as a going concern. As of March 31, 2025, Helius Medical Technologies had $3.5 million in total assets, $2.2 million in total liabilities, and total stockholders' equity of $1.3 million. HURST OPERATIONS: Case Summary & Two Unsecured Creditors -------------------------------------------------------- Debtor: Hurst Operations, Inc. Boney Joes 817 East Renfro Street Burleson, TX 76028 Business Description: Hurst Operations, Inc., doing business as Boney Joes, operates a quick-service restaurant in Burleson, Texas, offering pizza, sub sandwiches, wraps, grilled cheese, soft pretzels, and other casual dining items. Chapter 11 Petition Date: October 7, 2025 Court: United States Bankruptcy Court Northern District of Texas Case No.: 25-43906 Judge: Hon. Edward L Morris Debtor's Counsel: Joseph Fredrick Postnikoff, Esq. ROCHELLE MCCULLOUGH, LLP 300 Throckmorton Street, Suite 520 Fort Worth, TX 76102-2929 Tel: (817) 347-5261 Fax: (817) 347-5269 Email: JPostnikoff@romclaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Qasim Saeed as president. 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/DRO2VLI/Hurst_Operations_Inc__txnbke-25-43906__0001.0.pdf?mcid=tGE4TAMA IOK TECHNOLOGY: Amends Unsecured Claims Pay Details --------------------------------------------------- IOK Technology, LLC submitted a First Amended Combined Small Business Plan of Reorganization and Disclosure Statement dated October 1, 2025. Cash generated by ongoing operations shall first be used to fund administrative expenses, including professional and case Trustee fees and expenses, secured and lease claims, and operating expenses. The Plan pays priority claims in accordance with the treatment allowed under the Code, although no such claims are known at this time. The Debtor has reached terms with one of its equipment lenders and this plan treats the other one as fully secured so it is expected those creditors will support the Plan. After satisfaction of these claims, general unsecured creditors shall be paid pro rata out of all remaining Plan payments. The Plan shall last for 59 months following the first payment made under it, which is due within 30 days of the date the Confirmation Order becomes a Final Order. Class 3 consists of Allowed General Unsecured Claims, including the deficiency claims of secured creditors in Class 2 which claims shall receive a pro rata payment after satisfaction of the superior class claims treated under the Plan up to the full amount of the allowed claim of such creditor. Such claims shall be allowed, settled, compromised, satisfied and paid by a quarterly distribution of the net disposable income of the Debtor for the preceding quarter, for 12 quarters following confirmation of the Plan. Payment of such claims is expressly subordinate to the payment of priority claims under this Plan. Class 3 is impaired and is entitled to vote on the Plan. Class 4 consists of the Equity Interests, which interests shall be retained by existing interest owners. The Debtor shall continue to operate its business in accordance with the projection of income, expense and cash flow and shall pay its projected net after tax cash profit to satisfy creditor claims herein. A full-text copy of the First Amended Combined Plan and Disclosure Statement dated October 1, 2025 is available at https://urlcurt.com/u?l=roagtp from PacerMonitor.com at no charge. Counsel to the Debtors: KC Cohen, Esq. KC Cohen, Lawyer, PC 1915 Broad Ripple Ave. Indianapolis, IN 46220 Telephone: (317) 715-1845 Facsimile: (317) 636-8686 Email: kc@smallbusiness11.com About IOK Technology, LLC IOK Technology, LLC, operates a machine shop. IOK Technology sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 25-90702) on June 19, 2025, listing up to $500,000 in assets and up to $1 million in liabilities. Benny Garland, president of IOK Technology, signed the petition. KC Cohen, at KC Cohen, Lawyer, PC, is the Debtor's legal counsel. KX 84 LLC: Case Summary & Five Unsecured Creditors -------------------------------------------------- Debtor: KX 84, LLC 3930 E. Jones Bridge Road #100 Norcross, GA 30092 Chapter 11 Petition Date: October 6, 2025 Court: United States Bankruptcy Court Northern District of Georgia Case No.: 25-61604 Debtor's Counsel: Paul Reece Marr, Esq. PAUL REECE MARR. P.C. 6075 Barfield Road Suite 213 Sandy Springs, GA 30328-4402 Tel: (770) 984-2255 Email: paul.marr@marrlegal.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Kara Lawrence as manager. A full-text copy of the petition, which includes a list of the Debtor's five unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/3QSOJVI/KX_84_LLC__ganbke-25-61604__0001.0.pdf?mcid=tGE4TAMA LANDMARK RECOVERY: Ombudsman Hires Baker Donelson as Counsel ------------------------------------------------------------ Suzanne A. Koenig, the Patient Care Ombudsman in the case of Landmark Recovery of Colorado, LLC and affiliates seeks approval from the U.S. Bankruptcy Court for the Middle District of Tennessee to employ Baker, Donelson, Bearman, Caldwell & Berkowitz, PC as counsel. The firm's services include: (a) representing the Ombudsman in any proceeding or hearing in the Court, and in any action in other courts where the rights of the patients may be litigated or affected as a result of these Cases; (b) advising the Ombudsman concerning the requirements of the Bankruptcy Code and Bankruptcy Rules relating to the discharge of her duties under section 333 of the Bankruptcy Code; (c) advising and representing the Ombudsman in evaluating any patient or healthcare related issues, including, in connection with any sale or reorganization; and (d) performing such other legal services as may be required under the circumstances of these Cases in accordance with the Ombudsman's powers and duties as set forth in the Bankruptcy Code, including assisting the Ombudsman with reports to the Court, fee applications, or other matters. The firm will be paid at these rates: Shareholders/Of Counsel $500 to $1,390 per hour Associates $370 to $835 per hour Legal Assistants/Paralegals $140 to $490 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Adams 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: Jake Adams, Esq. BAKER, DONELSON, BEARMAN, CALDWELL & BERKOWITZ, PC 1600 West End Avenue, Suite 2000 Nashville, TN 37203 Tel: (615) 726-5631 Fax: (615) 744-5631 Email: jadams@bakerdonelson.com About Landmark Recovery of Colorado, LLC Landmark Recovery of Colorado LLC, formerly Landmark Recovery of Colorado Springs and doing business as Praxis of Colorado Springs by Landmark Recovery and Sheridan Grove Recovery, operates addiction treatment centers across multiple U.S. states, providing medical detox, residential, and outpatient rehabilitation services for substance use disorders. Its facilities, some branded under "Praxis by Landmark Recovery," offer individualized treatment plans incorporating therapy, medication-assisted treatment, and clinical support. Landmark Recovery's operations span locations in Arkansas, Colorado, Indiana, Kentucky, and Ohio, serving patients through evidence-based addiction care programs. Landmark Recovery of Colorado and Landmark Recovery of Arkansas sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Lead Case No. 25-03452) on August 20, 2025. In its petition, Landmark Recovery of Colorado reported total assets of $7,375,347 and total liabilities of $1,841,854 while Landmark Recovery of Arkansas reported between $1 million and $10 million in assets and up to $50,000 in liabilities. Honorable Bankruptcy Judge Randal S. Mashburn handles the case. The Debtors are represented by Michael G. Abelow, Esq., at Sherrard Roe Voigt & Harbison, PLC. LANDMARK RECOVERY: Ombudsman Hires SAK as Medical Advisor --------------------------------------------------------- Suzanne A. Koenig, the Patient Care Ombudsman in the case of Landmark Recovery of Colorado, LLC and affiliates seeks approval from the U.S. Bankruptcy Court for the Middle District of Tennessee to employ SAK Management Services, LLC d/b/a SAK Healthcare as medical operations advisor. The firm's services include: (a) conducting interviews of patients, family members, guardians, and hospital staff as required; (b) reviewing license and governmental permits; (c) reviewing adequacy of staffing, supplies, and equipment; (d) reviewing safety standards; (e) reviewing hospital maintenance issues or reports; (f) reviewing patient, family, staff, or employee complaints; (g) reviewing risk management reports; (h) reviewing litigation relating to the Debtors; (i) reviewing patient records; (j) reviewing any possible sale, closure, or restructuring of the Debtors and how it impacts patients; (k) reviewing other information, as applicable to the Debtors and these Cases, including, without limitation, patient satisfaction survey results, regulatory reports, utilization review reports, discharged and transferred patient reports, staff recruitment plans, and nurse/patient/acuity staffing plans; (l) reviewing various financial information, including, without limitation, current financial statements, cash projections, accounts receivable reports, and accounts payable reports to the extent such information may impact patient care; and (m) assisting the Ombudsman with such other services as may be required under the circumstances of these Cases, including any diligence or investigation required for the reports to be submitted by the Ombudsman. The firm will be paid at these rates: Principals/Executives $525 per hour Senior Managing Directors/Vice Presidents $475 per hour Senior Directors/Regional Directors/Directors $425 per hour Staff/Administrative $275 per hour Suzanne Koenig, founder and chief executive officer of SAK Healthcare, 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: Suzanne A. Koenig SAK Healthcare 300 Saunders Rd. Riverwoods, IL 60015 Telephone: (847) 446-8400 About Landmark Recovery of Colorado, LLC Landmark Recovery of Colorado LLC, formerly Landmark Recovery of Colorado Springs and doing business as Praxis of Colorado Springs by Landmark Recovery and Sheridan Grove Recovery, operates addiction treatment centers across multiple U.S. states, providing medical detox, residential, and outpatient rehabilitation services for substance use disorders. Its facilities, some branded under "Praxis by Landmark Recovery," offer individualized treatment plans incorporating therapy, medication-assisted treatment, and clinical support. Landmark Recovery's operations span locations in Arkansas, Colorado, Indiana, Kentucky, and Ohio, serving patients through evidence-based addiction care programs. Landmark Recovery of Colorado and Landmark Recovery of Arkansas sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Lead Case No. 25-03452) on August 20, 2025. In its petition, Landmark Recovery of Colorado reported total assets of $7,375,347 and total liabilities of $1,841,854 while Landmark Recovery of Arkansas reported between $1 million and $10 million in assets and up to $50,000 in liabilities. Honorable Bankruptcy Judge Randal S. Mashburn handles the case. The Debtors are represented by Michael G. Abelow, Esq., at Sherrard Roe Voigt & Harbison, PLC. LARCO POOLS: Gets Final OK to Use Cash Collateral ------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida granted Larco Pools, LLC final approval to use the cash collateral of secured creditor, Mainstreet Merchant Services, Inc. The final order 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 Mainstreet Merchant Services. Insider and professional compensation requires separate court approval. As adequate protection, Mainstreet Merchant Services will be granted a replacement lien on the cash collateral, with the same validity, priority and extent as its pre-bankruptcy lien. In addition, the Debtor was ordered to keep its property insured in accordance with its loan and security agreement with the secured creditor. A copy of the final order and the Debtor's budget is available at https://shorturl.at/q9los from PacerMonitor.com. About Larco Pools Larco Pools is a swimming pool contractor based in Dunedin, Florida. It 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 reported 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. Ford & Semach, P.A. Tel: 813-877-4669 Email: buddy@tampaesq.com LASEN INC: Examiner Hires Sonoran Capital as Financial Advisor -------------------------------------------------------------- Matthew Foster, the Examiner in the bankruptcy case of Lasen, Inc. fdba Organ Mountain Helicopters LLC and affiliate seek approval from the U.S. Bankruptcy Court for the District of Arizona to employ Sonoran Capital Advisors, LLC as financial advisor. The firm's services include: a. review of interCompanies transfers between the Companies; b. review of transactions between the Companies with non-debtor affiliated companies, including JF Aviation, LLC and SkySkopes Holdings, Inc.; c. review of transactions between the Debtors with the insiders of the Debtors and the insiders of the non-debtor affiliated companies; and d. draft a report to be filed with the Court. The firm will be paid at these rates: Managing Directors $595 hour Senior Consultants $495 hour Directors $395 hour Senior Associates $295 hour Analysts $195 hour In addition, the firm will seek reimbursement for its out-of-pocket expenses. Mr. Perkinson 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: Bryan Perkinson Sonoran Capital Advisors, LLC 1733 N Greenfield Rd, Suite 104 Mesa, AZ 85205 Tel: (480) 617-2664 About Lasen, Inc. fdba Organ Mountain Helicopters LLC Lasen Inc. develops and operates airborne LiDAR systems for leak detection and pipeline inspections across North America. Its proprietary Airborne LiDAR Pipeline Inspection System (ALPIS) identifies methane leaks with high accuracy and efficiency, supporting right-of-way and transmission line monitoring. Founded in 1989, LaSen has inspected over 500,000 miles of pipeline and specializes in remote sensing technologies adapted from U.S. defense applications. Lasen Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-05316) on June 11, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Bankruptcy Judge Brenda K. Martin handles the case. The Debtor is represented by Randy Nussbaum, Esq., at The Cavanagh Law Firm, P.A. LLSSGG LLC: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: LLSSGG LLC 32 Cooper Street Southampton, NY 11968 Business Description: LLSSGG LLC owns seven single- and multi- family residential properties located in Stamford and Milford, Connecticut. The portfolio includes properties at 12 and 14 Blackall Road in Milford, as well as 308 and 312 Greenwich Avenue, 114 Ludlow Street, 142–162 Ludlow Street, and 151–153 Spruce Street in Stamford. Chapter 11 Petition Date: October 6, 2025 Court: United States Bankruptcy Court Eastern District of New York Case No.: 25-73860 Judge: Hon. Alan S Trust Debtor's Counsel: Kevin Nash, Esq. GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP 125 Park Ave New York, NY 10017-5690 Email: knash@gwfglaw.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Michael Frattaroli as property manager. The petition was filed without the Debtor's list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/OFP2ZDY/LLSSGG_LLC__nyebke-25-73860__0001.0.pdf?mcid=tGE4TAMA MANNINGTON MILLS: S&P Upgrades ICR to 'B+', Outlook Stable ---------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on U.S. flooring manufacturer Mannington Mills Inc. to 'B+' from 'B' and its issue-level rating on the company's senior secured debt to 'B+' from 'B'. The '3' recovery rating on the secured debt is unchanged, indicating its expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a default. The stable outlook reflects S&P's expectation that Mannington will generate a moderate level of sales in its commercial segment amid the softness in the residential market such that its S&P Global Ratings-adjusted leverage remains in the 4x-5x range over the next 12 months. Upgrade reflects expectation S&P Global Ratings-adjusted debt to EBITDA will remain in the 4x-5x range for next 12 months. The company increased its total revenue by approximately 1.7% in the first half of 2025, relative to the same period in fiscal year 2024 (ended June 2024), on steady demand in its Commercial segment, including positive results for its luxury vinyl tile (LVT) and Cushion products, which was partially offset by the softness in the demand for its commercial carpet and rubber flooring products. The demand for Mannington's laminate and carpet products in its Residential segment remained challenged, though it benefited from modest increases in the sales of its luxury vinyl tile (LVT) and hard surface offerings. S&P expects the lower level of overall demand in the residential construction market will persist for the remainder of 2025 and into fiscal year 2026 as customers defer repair and remodel (R&R) activity amid higher interest rates and inflation concerns. The company's S&P Global Ratings-adjusted debt to EBITDA was 3.9x on a rolling-12-month (RTM) basis as of June 30, 2025. S&P expects the continued steady performances of its Commercial and Amtico segments for the remainder of fiscal year 2025 and into fiscal 2026 will be partially offset by persistent softness in its residential sales volume, leading it to sustain S&P Global Ratings-adjusted leverage in the 4x-5x range for the next 12 months. Mannington Mills operates in the highly competitive flooring industry and has limited pricing power. Mannington, a leader in the LVT category, has seen its sales recover from some of the supply chain issues it faced around the Uyghur Forced Labor Protection Act in 2023. Mannington has also improved its EBITDA margin on the rising demand for its LVT products. As of June 30, 2025, the company's S&P Global Ratings-adjusted EBITDA margin was in the 9%-11% range, which was up from the 5%-7% range during the same period in June 2023. S&P believes that Mannington will continue to benefit from steady performances in both its commercial and residential LVT business, which will likely enable it to maintain EBITDA margins in the 9%-11% range over the next 12 months. S&P said, "Overall, we view Mannington as having a smaller scale and weaker competitive advantage than the larger players in its industry. While the company has invested in product innovation, we assess its business as constrained by its sole focus on flooring products. Mannington is also smaller than several of its competitors, including Mohawk Industries Inc. For example, the company generated $800 million of revenue in 2024, which compares with the $10.8 billion of revenue reported by Mohawk over the same period. "The stable outlook on Mannington reflects our view that its S&P Global Ratings-adjusted leverage will remain in the 4x-5x range while it sustains EBITDA interest coverage of more than 2x over the next 12 months on continued weak residential demand amid the challenging macroeconomic environment." S&P could lower its ratings on Mannington if its S&P Global Ratings-adjusted leverage rises above 5x on a sustained basis, which could occur if: -- Macroeconomic headwinds and inflationary pressures lead to a sustained downturn in the performance of the company's commercial business; or -- Management adopts a more-aggressive financial policy, including the pursuit of large debt-financed dividends or acquisitions. Although unlikely in the next 12 months. S&P could raise its rating on Mannington if: -- The conditions in the residential housing sector rebound and the company improves its sales and EBITDA margins such that its S&P Global Ratings-adjusted debt declines to the lower side of the 3x-4x range, and S&P expects it will remain in that level; and -- The company materially expands its scale and diversity. MARELLI AUTOMOTIVE: Plan Exclusivity Extended to Feb. 6, 2026 ------------------------------------------------------------- Judge Craig T. Goldblatt of the U.S. Bankruptcy Court for the District of Delaware extended Marelli Automotive Lighting USA LLC and affiliates' exclusive periods to file a plan of reorganization and obtain acceptance thereof to February 6, 2026 and April 7, 2026, respectively. As shared by Troubled Company Reporter, the Debtors explain that their capital structure, which as of the Petition Date consisted of approximately $4.9 billion in funded debt obligations, is large and complex. As such, administering these chapter 11 cases requires significant input from the Debtors' management team and advisors on a wide range of complicated matters necessary to bring structure and consensus to a large and complex process. Accordingly, the complexity of these chapter 11 cases weighs in favor of extending the Exclusivity Periods. The Debtors claim that they have made significant progress in negotiating with their stakeholders and administering these chapter 11 cases, which warrants an extension of the Exclusivity Period. The Debtors commenced these chapter 11 cases with limited liquidity and have moved expeditiously through these chapter 11 cases and advanced discussions among the Debtors' key stakeholders regarding global consensus in these chapter 11 cases. The Debtors' substantial progress administering these chapter 11 cases weighs in favor of an extension of the Exclusivity Periods. Co-Counsel for the Debtors: Laura Davis Jones, Esq. Timothy P. Cairns, Esq. Edward A. Corma, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, Delaware 19899 (Courier 19801) Tel: (302) 652-4100 Fax: (302) 652-4400 Email: ljones@pszjlaw.com tcairns@pszjlaw.com ecorma@pszjlaw.com Co-Counsel for the Debtors: Joshua A. Sussberg, P.C. Nicholas M. Adzima, Esq. Evan Swager, Esq. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 601 Lexington Avenue New York, New York 10022 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 Email: joshua.sussberg@kirkland.com nicholas.adzima@kirkland.com evan.swager@kirkland.com - and - Ross M. Kwasteniet, P.C. Spencer A. Winters, P.C. 333 West Wolf Point Plaza Chicago, Illinois 60654 Tel: (312) 862-2000 Fax: (312) 862-2200 Email: ross.kwasteniet@kirkland.com spencer.winters@kirkland.com About Marelli Automotive Lighting USA Marelli Automotive Lighting USA, LLC is a global automotive parts supplier based in Saitama, Japan. The company designs and manufactures advanced technologies for leading automakers, including lighting systems, electronic components, software solutions, and interior products. Operating in 24 countries with a workforce of over 46,000, Marelli also collaborates with motorsports teams and industry partners on high-performance component development. Marelli and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 25-11034) on June 11. 2025. In its petition, Marelli reported between $1 billion and $10 billion in assets and liabilities. Judge Brendan Linehan Shannon handles the cases. The Debtors are represented by Kirkland & Ellis LLP, Kirkland & Ellis International LLP, and Pachulski Stang Ziehl & Jones LLP. Alvarez & Marsal North America, LLC is the Debtors' restructuring advisor. PJT Partners Inc. is the Debtors' investment banker. Kurtzman Carson Consultants, LLC, doing business as Verita Global, is the Debtors' notice and claims agent. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee tapped Paul Hastings, LLP and Morris James, LLP as legal counsel and FTI Consulting, Inc. as its financial advisor. MCKENNA STORER: Cash Collateral Hearing Set for Oct. 15 ------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, is set to hold a hearing on October 15 to consider another extension of McKenna, Storer, Rowe, White & Farrug's authority to use cash collateral. The Debtor's authority to utilize cash collateral pursuant to the court's interim order expires on October 17. The interim order signed by Judge David Cleary on October 2 approved the payment of the Debtor's expenses from the cash collateral in accordance with its budget. As adequate protection, the interim order granted the Debtor's secured creditor, Fifth Third Bank, a post-petition security interest in and lien on the same type of collateral securing the bank's pre-bankruptcy claims. Fifth Third Bank asserts more than $348,000 in pre-bankruptcy claims allegedly secured by cash collateral. On February 16, the bank filed a financing statement with the Illinois Secretary of State, claiming an interest in substantially all of the Debtor's assets. About McKenna, Storer, Rowe, White and Farrug McKenna, Storer, Rowe, White and Farrug sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-15166) on October 1, 2025, listing between $500,001 and $1 million in assets and between $1 million and $10 million in liabilities. Judge David D. Cleary oversees the case. The Debtor is represented by: Jeffrey K. Paulsen, Esq. Paulsen & Holtschlag LLC Tel: 847-644-9385 Email: jpaulsen@ph-firm.com MERCER INTERNATIONAL: Fitch Alters Outlook on 'B+' IDR to Negative ------------------------------------------------------------------ Fitch Ratings has revised Mercer International Inc.'s Rating Outlook to Negative from Stable and affirmed its Long-Term Issuer Default Rating (IDR) at 'B+'. Mercer's 'B+' rating reflects the favorable cost position of its pulp and wood facilities, its adequate liquidity position, and exposure to cyclical end-markets. The Negative Outlook is driven by weak EBITDA and free cash flow (FCF) generation, and the expectation that leverage will remain above or at sensitivity levels through most of the forecast period. Persistent weakness in pulp and delayed recovery in lumber constrain Mercer's deleveraging prospects. Its rating is highly sensitive to the company's liquidity position, and deterioration below current levels could result in a negative rating action. Fitch may revise the Outlook given clearer visibility of high cash flow generation and the company's ability to sustain leverage within the sensitivities. Key Rating Drivers Persistently High Leverage: Fitch forecasts EBITDA leverage will remain above or at the negative rating sensitivity of 4.5x for most of the period, supporting the Negative Outlook. Weak pulp demand and prices are contributing to significantly lower EBITDA generation, forecasted to be around $50 million for YE 2025. Fitch expects pulp demand and prices to moderately recover in 2026 and 2027, resulting in leverage approaching 4.5x in 2027. The pulp business, primarily driven by Northern Bleached Softwood Kraft (NBSK), has experienced declining demand from China, a major global purchaser. Despite ongoing U.S.-China trade negotiations, Chinese purchases have not rebounded, and Fitch expects this to result in a decline in pulp revenue in 2025 and low single-digit EBITDA Margins. Housing and Construction Remains Muted: The downturn in post-pandemic lumber prices kept Mercer's lumber operations below EBITDA breakeven in 2023 and 2024. Since then, pricing has recovered near breakeven levels. Fitch expects only gradual improvement for the remainder of the forecast, although Mercer's European domiciled lumber business may outperform Canadian peers given the tariff advantages of the European region. Anticipated weak consumer demand is expected to delay a more meaningful recovery in the U.S. housing market and limit improvements in the profitability of Mercer's Solid Wood segment. Adequate Liquidity and Flexibility: Mercer holds around $438 million in liquidity from revolver availability and cash as of June 30, 2025, providing an adequate cushion to operate through several years of depressed pricing and negative free cash flow (FCF) generation. Fitch's ratings are sensitive to liquidity deterioration that would materially reduce this cushion. The absence of secured debt in the capital structure enhances both financial and refinancing flexibility. Balanced Capital Allocation Policy: Mercer's capital allocation policy is balanced between a modestly expansive capex program, modest shareholder returns, and a goal of managing EBITDA leverage below current levels. In the second quarter, Mercer suspended dividends amidst economic uncertainty. Fitch forecasts the approximately $20 million annually dividend to return towards the end of the forecast period. No share repurchases are anticipated. Fitch believes management's leverage target ratio is below current levels, but does not foresee any significant decrease in gross debt as the capex strategy is likely to be funded with existing cash and revolver availability. Favorable Cost Position: Mercer's pulp segment, which currently represents 75% of EBITDA, benefits from a favorable global cost position (roughly middle 2nd quartile) due to modern and efficient pulp mills, proximity to raw materials and favorable fiber procurement arrangements. As such, Mercer has a good ability to generate positive cash flows throughout the cycle. Pulp prices are expected to remain stable throughout the forecast period, supporting Fitch's view that EBITDA growth will lead to slow deleveraging. Diversification Strategy: Fitch anticipates that Mercer will continue to invest in its solid wood's businesses, with a goal of enhancing the cost positioning and EBITDA generation of these higher value-added products. Mercer conducted a series of acquisitions in this business, totaling approximately $400 million through 2023. Management aims to continue diversifying into higher value-added products, like engineered wood products and biofuels, to reach a level approaching pulp earnings, thereby reducing sensitivity to cyclical commodity pricing and improving earnings consistency. Peer Analysis Mercer's main competitors within Fitch's publicly rated universe are Domtar Corporation (BB-/Negative), Sylvamo Corporation (BB+/Stable) and Klabin S.A. (BB+/Stable). Domtar's revenue is nearly 5x larger because, in addition to pulp, it manufactures and sells uncoated free-sheet paper. Domtar's product mix is marginally more developed than Mercer's, which helps maintain earnings during rough periods in volatile markets. The company recently acquired Resolute Forest Products, Inc, increasing leverage, and has been further impacted by weak lumber prices. Mercer's solid wood segment operates in a lower cost curve position due to the location of the facilities and their structure. The pulp mills are comparable in cost positioning. Domtar can maintain a rating one notch higher due to lower forecast leverage and superior FCF generation. Klabin's historical EBITDA margins, typically between 30% and 40%, are considerably higher than Mercer's, between 3.8% and 26.4%, due to the former's leading scale and low-cost position in pulp products. Klabin's margins are also more consistent despite operating in the same cyclical pulp industry. Klabin has significant exposure to the fast-growing Brazilian market, while Mercer is more exposed to China. Sylvamo is a top three producer of uncoated freesheet in Latin America, Europe and North America, with strong FCF generation and a balanced capital allocation strategy. Its leverage is meaningfully below its stated leverage target. Fitch believes Sylvamo has a profitable and lengthy runway in the uncoated free-sheet segment despite the long-term trends affecting the sector. Its prudent capital allocation strategy also lowers the company's the credit risk. Key Assumptions Base Case - Lumber prices remain subdued for most of the forecast period, reflecting a high-interest rate environment and subdued housing activity; - Pulp market recovering in 2026, becomes supportive in 2027; - Projects completed on schedule with improvements to the solid woods segment's profitability; - Dividends and capex in line with management guidance; - Refinancing of debt at maturities modestly increases interest expense without material decrease in gross debt outstanding. Recovery Analysis - The recovery analysis assumes that Mercer would be reorganized as a going concern in bankruptcy rather than liquidated; - A bankruptcy scenario could result from a steeper and longer than anticipated trough in the pulp and lumber markets that consistently compresses margins around 2023 levels, leading to a liquidity crisis; - Unsecured bonds issued by Mercer are structurally subordinated to the Canadian revolver, German revolver and German demand loan as a result of no subsidiaries guaranteeing the debt, thus the unsecured bonds are holding company obligations; - Fitch assumes the revolver is 100% drawn; - Fitch has assumed a 10% administrative claim. Going Concern (GC) Approach Fitch assigned a GC EBITDA of $250 million, representing what Fitch believes Mercer could reasonably generate in a recovering pulp and lumber market as the company emerges from bankruptcy. Fitch typically assigns EV/EBITDA multiples between 4.5x and 6.0x for packaging peers. Mercer's exposure to volatile end markets, favorable cost positioning and weak FCF generation leads Fitch to assign a 5.0x multiple. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Midcycle EBITDA leverage consistently above 4.5x; - A worsening liquidity profile; - Sustained negative FCF or prolonged EBITDA margin deterioration; - Shift in financial policies that prioritizes shareholder returns over deleveraging. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Mid-cycle EBITDA leverage consistently below 3.5x; - Consistent track record of using positive FCF generation to reduce debt; - Increased diversification of product mix leading to lower earnings volatility. Liquidity and Debt Structure As of June 30, 2025, Mercer reported $146 million of cash on hand and $292 million available under its revolving credit facilities. Fitch forecasts for the challenging market conditions of pulp and lumber to continue throughout 2025, before a gradual recovery begins in 2026. Fitch anticipates liquidity to remain healthy during this period and to potentially improve in the future, with the completion of growth capex projects that are forecast to improve profitability. The company's revolving credit facilities mature in 2027, followed by unsecured bond maturities in 2028 and 2029, giving the company time to repay or refinance the debt. Fitch believes the fully unsecured capital structure, which is broadly syndicated, will aid the company's refinancing efforts. Fitch anticipates a refinancing of the revolver to take place in the forecast period, albeit at a slightly higher interest rate. Issuer Profile Mercer manufactures market pulp and solid wood products in nine facilities located in Germany, Canada and the U.S. The Pulp segment is largely Northern Bleached Softwood Kraft. The Solid Wood segment consists of lumber, manufactured products, pallets, biofuels and energy. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor 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 ----------- ------ -------- ----- Mercer International Inc. LT IDR B+ Affirmed B+ senior unsecured LT B+ Affirmed RR4 B+ MILAN SAI: Gets Extension to Access Cash Collateral --------------------------------------------------- Milan Sai Joint Venture, LLC received another extension from the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, to use cash collateral. The court's ninth interim order authorized the Debtor to use cash collateral to pay the expenses set forth in its budget pending the final hearing on November 4. The budget shows total projected expenses of $40,045.96. The lender, Gregory Milligan, in his capacity as court-appointed receiver for Pride of Austin High Yield Fund 1, LLC, will be granted replacement liens on all cash collateral and property generated or acquired by the Debtor after its Chapter 11 filing. The replacement liens will have the same validity, priority and extent as the lender's pre-bankruptcy liens and do not apply to any Chapter 5 causes of action. In addition, the lender is entitled to a superpriority administrative expense claim for any diminution in value of its collateral. The deadline for filing objections is on October 28. Mr. Milligan is represented by: William R. Nix, Esq. Holland & Knight, LLP 100 Congress Avenue, Suite 1800 Austin, TX 78701 Telephone: 512.685.6476 Trip.nix@hklaw.com -- and -- Christopher A. Bailey, Esq. Holland & Knight, LLP 1722 Routh Street, Suite 1500 Dallas, TX 75201 Telephone: 214.969.1784 chris.bailey@hklaw.com About Milan Sai Joint Venture Milan Sai Joint Venture, LLC operates in the traveler accommodation industry. Milan Sai Joint Venture sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 24-33560) on November 4, 2024, with up to $10 million in both assets and liabilities. Sunil Kumar Patel, managing member, signed the petition. Judge Michelle V. Larson oversees the case. Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC is the Debtor's bankruptcy counsel. MINI MANIA: Further Fine-Tunes Plan Documents --------------------------------------------- Mini Mania, Inc., submitted a Third Amended Disclosure Statement describing Third Amended Chapter 11 Plan dated October 3, 2025. This is a reorganizing plan under which the Debtor will make payments paying creditors over time. The Effective Date of the proposed Plan is 30 days following entry of an order confirming the proposed Plan unless the Debtor, in its discretion, advances the Effective Date. Mini implemented the following procedures and changes: * During the case, Mini has had the support of key creditors who provide products. They continue to provide product which permits the Debtor to remain in business and to sell products. * The bankruptcy filing initially stopped some, but not all of, the efforts by MCAs to collect monies. Early in the case MCAs continued to grab money or took steps to stop third parties from paying the Debtor. These efforts eventually stopped. This helped Mini focus on the reorganization instead of working to unfreeze monies that had been frozen. * Mini let go many employees. This reduced labor costs. * Mini reduced other expenses. * Mini also increased its margin on some products it sells. In general, Mini has raised the aggregate margin on its products from approximately 30 and 31% prepetition to 40% margin overall, postpetition. In July and August, 2025, the margin on orders averaged 42% and 44.6%, respectively. Some of these orders have shipped; others while ordered and many paid for, have not shipped. These changes make it likely Mini can perform under its proposed Plan. Like in the prior iteration of the Plan, the unsecured claims of $1,344,491.02 are paid at 15% over a 6-year period. Payments begin in month 7, and through year 2 are $1,222/mo. In year 3, payments are $2,750/mo. In year 4, payments are $3,056/mo. In years 5-6 payments are $4,583/mo. Total unsecured payments during the plan equal $201,673.65. The percentage stated is only an estimate. It is not a guaranty of a %. Payments to class members may be higher or lower than anticipated. Claims may be disallowed that would raise the % paid. The percentage actually paid may vary depending on any rejection claims or claims of putatively secured creditors who actually are unsecured or under-secured. Also claims may be amended to assert higher or lower claim amounts. Any failure to pay the stated % to class members shall not constitute a default. The Plan will be funded by the Debtor's business operation. The Debtor anticipates having monies of $45,000 on hand at the Plan's Effective Date from ongoing operations. No assets will be sold to fund the Plan. A full-text copy of the Third Amended Disclosure Statement dated October 3, 2025 is available at https://urlcurt.com/u?l=ssgCFE from PacerMonitor.com at no charge. Counsel to the Debtor: Steven R. Fox, Esq. The Fox Law Corporation, Inc. 17835 Ventura Blvd., Suite 306 Encino, CA 91316 Tel: (818) 774-3545 Fax: (818) 774-3707 Email: srfox@foxlaw.com About Mini Mania, Inc. Mini Mania Inc., d/b/a Sprintboostersales.com, owns and operates automotive parts, accessories, and tire stores. On the Web: https://minimania.com/ Mini Mania Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 24-22456) on June 4, 2024. In the petition filed by Jonathan Harvey, as president, the Debtor reports total assets of $1,155,121 and total liabilities of $3,312,513. The Honorable Bankruptcy Judge Fredrick E Clement oversees the case. The Debtor is represented by Steven R. Fox, Esq., at The FoxLaw Corporation, Inc. MJS MATERIALS: Seeks Subchapter V Bankruptcy in Florida ------------------------------------------------------- On October 10, 2025, MJS Materials Inc. voluntarily filed for Chapter 11 bankruptcy in the Southern District of Florida. The filing shows that the company's liabilities estimated between $0 and $100,000, with 1 to 49 creditors reported. About MJS Materials Inc. MJS Materials Inc. is a Florida-based business offering aggregate hauling and logistics solutions for the construction, land development, and infrastructure sectors. MJS Materials Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-21971) on October 10, 2025. In its petition, the Debtor reports estimated assets and liabilities up to $100,000. Honorable Bankruptcy Judge Mindy A. Mora handles the case. The Debtor is represented by Matthew S. Kish, Esq. MODIVCARE INC: Committee Hires White & Case LLP as Counsel ---------------------------------------------------------- The official committee of unsecured creditors of Modivcare Inc. and affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to White & Case LLP as counsel. The firm will provide these services: (a) advise the Committee regarding its rights, powers, and duties under the Bankruptcy Code and in connection with these Chapter 11 Cases; (b) assist and advise the Committee in its consultations and negotiations with the Debtors concerning the administration of these Chapter 11 Cases; (c) assist and advise the Committee in its examination, investigation, and analysis of the acts, conduct, assets, liabilities, and financial condition of the Debtors; (d) assist the Committee in the review, analysis, and negotiation of any chapter 11 plan(s) that have been or may be filed and assist the Committee in the review, analysis, and negotiation of the disclosure statement accompanying any chapter 11 plan(s); (e) take all necessary action to protect and preserve the interests of the Committee and creditors holding general unsecured claims against the Debtors' estates, including (i) the investigation and possible prosecution of actions enhancing the Debtors' estates including any potential challenges to the scopes of the prepetition security interests of the Company's first lien lenders, and (ii) review and analysis of claims filed against the Debtors' estates; (f) review and analyze motions, applications, orders, statements of operations, and schedules filed with the Bankruptcy Court and advise the Committee as to their propriety; (g) prepare on behalf of the Committee all necessary pleadings, applications, memoranda, orders, reports, and other papers, in support of positions taken by the Committee; (h) represent the Committee at all court hearings, statutory meetings of creditors, and other proceedings before this Court; (i) assist the Committee in the review, analysis, and negotiation of any financing agreements; (j) assist and advise the Committee as to its communications with its constituents regarding significant matters in these Chapter 11 Cases, including but not limited to, communications required under section 1102(b)(3) of the Bankruptcy Code; and (k) perform such other legal services as required or otherwise deemed to be in the interests of the Committee in connection with these Chapter 11 Cases. The firm will be paid at these rates: Partners $1,690 to $2,500 per hour Counsel $1,630 per hour Associates $870 to $1,580 per hour Paraprofessionals $355 to $700 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Mr. Pesce 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: Gregory F. Pesce, Esq. White & Case LLP 111 South Wacker Drive, Suite 5100 Chicago, IL 60606-4302 Tel: (312) 881-5400 Email: gregory.pesce@whitecase.com 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. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90309) on August 20, 2025. In the petition signed by Chad J. Shandler, chief transformation officer, the Debtor disclosed up to $10 billion in both assets and liabilities. Judge Alfredo R. Perez oversees the case. Timothy A. Davidson II, Esq., at Hunton Andrews Kurth LLP, represents the Debtor as legal counsel. MOGULS INDUSTRIES: Unsecureds Will Get 4.34% of Claims in Plan -------------------------------------------------------------- Moguls Industries LLC filed with the U.S. Bankruptcy Court for the Western District of Pennsylvania a Plan of Reorganization for Small Business dated October 2, 2025. The Debtor was organized as a limited liability company under the laws of Pennsylvania in 2017, for the purpose of acquiring and operating a preexisting bar and restaurant business called "Rumor's Tavern" located at 466 Rochester Road, Zelienople, PA. The Debtor was organized as a limited liability company owned entirely by its sole member, Gary Fennell. The Debtor was a sole member LLC as of the date of its filing this Case, and remains so as of the date of this Plan. Since the filing of the Chapter 11 Case, the Debtor has also begun to restructure its workforce and staffing schedule to reduce payroll expenditures while maintaining sales revenue. The Debtor has also renewed its participation in online ordering and delivery services which has led to additional sales revenue. Given the value of the assets comprising the Debtor's estate in this Chapter 11 Case, it is the Debtor's intention to utilize the protections and rights available to it under the Code in this Chapter 11 Case to minimize its prepetition unsecured debt as much as possible, and to restructure its secured debt obligations to the extent of such obligations' value in the corresponding collateral. The Plan proposes to pay the Debtor's creditors from cash flow from operations. The Plan proposes to pay administrative and priority claims in full unless otherwise agreed. The Debtor estimates approximately 4.34% will be paid on account of general unsecured claims pursuant to the Plan. The percentage is subject to change based on the allowance of claims, litigation proceeds, or the proceeds from any sales that may occur. Class 5 consists of General Unsecured Claims. Known Class 5 General Unsecured Claims total $996,239.38 which represents the value of all unsecured claims in this Chapter 11 Case combined with the Additional Purported Secured Claims of the creditors listed in Section 2.2.4, supra, which the Debtor will treat as general unsecured Claims for the purposes of this Plan, on account of the disputed validity of the Section 2.2.4 Claimants' security interest in the Debtor's post-petition accounts receivable, or other property of the Debtor. Over the life of the Plan, the Debtor shall issue payments to General Unsecured Creditors as follows: on December 31, 2025, the Debtor shall issue a single payment of $3,800.00 to General Unsecured Creditors; on December 31, 2026, the Debtor shall issue a single payment of $3,000.00 to General Unsecured Creditors; on December 31, 2027, the Debtor shall issues a single payment of $19,000.00 to General Unsecured Creditors; and on November 30, 2028, the Debtor shall issue a single payment of $17,500.00 to General Unsecured Creditors. Total payments to Class 5 General Unsecured Creditors shall be $42,300.00, which represents approximately 4.34% of their known claims. Class 6 consists of Gary Fennell as the 100% Membership Interest Holder. Membership Interest will remain the same. The Plan will be funded through ongoing operations of the Debtor's bar and restaurant business. A full-text copy of the Plan of Reorganization dated October 2, 2025 is available at https://urlcurt.com/u?l=RvhBQZ from PacerMonitor.com at no charge. Counsel to the Debtor: Ryan J. Cooney, Esq. Cooney Law Offices LLC 223 Fourth Avenue, 4th Fl. Pittsburgh, PA 15222 Telephone: (412) 546-1234 Facsimile: (412) 546-1235 Email: rcooney@cooneylawyers.com About Moguls Industries LLC Moguls Industries LLC is the operator of Rumors Tavern, a drinking establishment located in Zelienople, Pennsylvania. Moguls Industries LLC sought relief under Subchapter V of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-21775) on July 7, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Ryan J. Cooney, Esq. at Cooney Law Offices. MONDAK PORTABLE: Court to Hold Cash Collateral Hearing Today ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of North Dakota is set to hold a hearing today to consider another extension of MonDak Portables, LLC's authority to use cash collateral. The Debtor's authority to use cash collateral pursuant to the court's interim order expires today. The interim order signed by Judge Shon Hastings on October 2 approved the payment of up to $120,000 in expenses from cash collateral in accordance with the Debtor's budget. The interim order granted secured creditor, North Avenue Capital, LLC, replacement liens on the Debtor's post-petition assets (excluding Chapter 5 avoidance actions) similar to its pre-bankruptcy collateral. It also approved the monthly payment of $25,000 to North Avenue Capital as additional protection. The cash collateral is encumbered by first priority liens held by North Avenue Capital. North Avenue Capital is represented by: Raye C. Elliott, Esq. Akerman LLP 401 East Jackson Street, Suite 1700 Tampa, FL 33602 Phone: 813.223.7333 Fax: 813.223.2837 raye.elliott@akerman.com About MonDak Portables LLC MonDak Portables, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.D. Case No. 25-30429) with $1,000,001 to $10 million in both assets and liabilities. Judge Hon. Shon Hastings oversees the case. Christianna A. Cathcart, Esq., at The Dakota Bankruptcy Firm is the Debtor's legal counsel. NATIONAL MENTOR: Moody's Rates New Secured 1st Lien Bank Loans 'B3' ------------------------------------------------------------------- Moody's Ratings assigned B3 rating to National MENTOR Holdings Inc.'s ("National MENTOR" d/b/a "Sevita") proposed senior secured first lien bank credit facility consisting of a $314 million revolver expiring in 2031 and a $2.507 billion term loan B due 2033. Moody's also affirmed the company's B3 Corporate Family Rating, B3-PD Probability of Default Rating, and the Caa2 rating on the senior secured second lien term loan. The B3 rating on the company's existing senior secured first lien bank credit facility remains unchanged as Moody's expects a full repayment upon the close of the proposed refinancing transaction. The outlook remains stable. Proceeds from the proposed refinancing transaction along with approximately $142 million in sponsor equity will be used to pay off all outstanding amounts (approximately $1.8 billion) under the existing senior secured term loan, finance the purchase of a community living business (ResCare Community Living) from BrightSpring Health Services, Inc. and pay transaction-related fees. The rating affirmation reflects Moody's expectations of debt-to-EBITDA in the mid-to-high 5 times range, slightly down from 5.8x at the end of June 30, 2025. The acquisition of ResCare Community Living will meaningfully increase the company's revenue base from $3.1 billion to $4.2 billion, improve geographic diversity, and also help in enhancing the company's market share in the highly fragmented intellectual and developmental disabilities ("I/DD") services market. RATINGS RATIONALE National MENTOR's B3 CFR is constrained by reimbursement risk given its heavy reliance on Medicaid and state budgets. The company is exposed to possible reimbursement cut and/or loss of insured patient volume as a result of reduced federal Medicaid funding under the One Big Beautiful Act passed in July 2025. Elevated labor costs and a historically aggressive expansion strategy also constrain the company's rating. The company benefits from its position as one of the largest providers of home and community-based services to individuals with I/DD and catastrophic injuries. Industry trends are moving towards placing I/DD individuals in smaller, lower-cost community settings (such as those operated by the company) instead of large state operated institutions. The stable outlook reflects Moody's expectations that the company will operate with debt/EBITDA in the mid-to-high 5.0 times range over the next 12 to 18 months driven by Moody's expectations for earnings growth. Moody's expects that National MENTOR will maintain good liquidity over the next 12 months. The company will generate positive free cash flow (close to $50 million) in the next 12 months. Given the predictability of cash inflows from the local governments, the company operates with minimal unrestricted cash but ample access to external funding through revolving credit facility and accounts receivables securitization facility. Post-refinancing, the company will have access to about $314 million from fully undrawn revolving credit facility. The company also has a $175 million accounts receivables (A/R) securitization facility expiring in 2026, which it will upsize and extend the maturity to 2031 as part of the refinancing transaction. The B3 ratings on the senior secured first lien bank credit facilities reflect the fact that the first lien credit facilities comprise the preponderance of debt in the capital structure. The Caa2 rating on the senior secured second lien term loan reflects the subordinated nature of the debt in the capital structure. The two credit facilities are secured by a first or second priority security interest in substantially all existing and future assets of National MENTOR. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if the company experiences unexpected setbacks in integrating ResCare Community Living business, thereby impacting the company's earnings and cash flow negatively. An unfavorable regulatory trend, including greater than currently expected negative impact from the implementation of the One Big Beautiful Act will also pressure the company's ratings. A downgrade could also occur if the company's liquidity weakens or the company pursues further large debt-funded shareholder dividends or acquisitions. The ratings could be upgraded if the company maintains less aggressive financial policies such that debt to EBITDA is sustained below 5.5 times on Moody's adjusted basis. Further improvements in liquidity, evidenced by consistent positive free cash flow generation, could also result in a ratings upgrade. National MENTOR Holdings Inc. ("National MENTOR", d/b/a Sevita) headquartered in Edina MN, is a provider of home-based and community-based health and human services to individuals with intellectual and/or developmental disabilities, acquired brain/other catastrophic injuries, and complex emotional/behavioral/medical challenges. Revenue was $3.1 billion for the twelve months ended June 30, 2025 (pro forma for the Res-Care acquisition, revenues will be in excess of $4.2 billion). The company is owned by Centerbridge Partners LP, The Vistria Group and Madison Dearborn Partners, LLC. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. NAVIDEA BIOPHARMACEUTICALS: Files for Chapter 11 Bankruptcy ----------------------------------------------------------- Navidea Biopharmaceuticals, Inc., a biopharmaceutical company focused on the development of precision immunodiagnostic agents and immunotherapeutics, announced on October 8, 2025, that it filed a voluntary petition for relief under Chapter 11, Subchapter V of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware on October 1, 2025. The filing is intended to enable the Company to pursue an orderly restructuring of its financial obligations while continuing limited operations to preserve value for creditors and stakeholders. The Company intends to use the Chapter 11 process to evaluate strategic alternatives, protect its assets, and ensure fair treatment of creditors. Access to Case Information Epiq Corporate Restructuring, LLC is serving as the claims and noticing agent for the Company's Chapter 11 case. Creditors, shareholders, and other interested parties can obtain additional information about the case, including court filings, claim forms, and key dates, by visiting the Epiq website at: https://dm.epiq11.com/Navidea. Additionally, creditors, shareholders, and other interested parties can register on the case website to receive electronic copies of to all docketed Court pleadings, free of charge. About Navidea Biopharmaceuticals Inc. Navidea Biopharmaceuticals Inc. develops precision immunodiagnostic agents and immunotherapeutics, focusing on identifying disease sites and pathways to improve diagnostic accuracy, clinical decision-making, and targeted treatment. The Company's products are based on its Manocept platform, which targets the CD206 mannose receptor on activated macrophages, and includes Tc99m tilmanocept, a commercially developed diagnostic agent. Navidea operates in the United States and engages in global partnering and commercialization efforts within the biopharmaceutical and diagnostic instruments sectors. Navidea Biopharmaceuticals Inc.sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11779) on October 1, 2025. In its petition, the Debtor reports total assets as of August 31, 2025 amounting to $1,202,555 and total liabilities as of August 31, 2025 of $12,874,821. Honorable Bankruptcy Judge J Kate Stickles handles the case. The Debtor is represented by Joseph C. Barsalona II, Esq. of PASHMAN STEIN WALDER HAYDEN, P.C. PIQ CORPORATE RESTRUCTURING, LLC is the Debtor's Claims & Noticing Agent. NEED SPACE: Seeks Subchapter V Bankruptcy in Tennessee ------------------------------------------------------ On October 10, 2025, Need Space Tabb voluntarily filed for Chapter 11 bankruptcy in the Western District of Tennessee. The filing shows the company's liabilities are between $1 million and $10 million, with an estimated 1 to 49 creditors. About Need Space Tabb Need Space Tabb is a single asset real estate company. Need Space Tabb sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No. 25-25205) on October 10, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Ruthie Hagan handles the case. The Debtor is represented by Marcus D. Ward, Esq. of Marcus D Ward, Pllc. NEUEHEALTH INC: Completes Merger With NH Holdings 2025 ------------------------------------------------------ As previously disclosed, on December 23, 2024, NeueHealth, Inc. entered into an Agreement and Plan of Merger with NH Holdings 2025, Inc. ("Parent"), and NH Holdings Acquisition 2025, Inc., a Delaware corporation and a wholly owned subsidiary of Parent ("Merger Sub"). On October 2, 2025, upon the terms and subject to the conditions set forth in the Merger Agreement and in accordance with the applicable provisions of the Delaware General Corporation Law, Merger Sub merged with and into the Company, with the Company surviving such merger as a wholly owned subsidiary of Parent. Parent and Merger Sub are indirectly controlled by private investment funds affiliated with New Enterprise Associates, Inc. Closing of the Merger: On the Closing Date, Parent completed the acquisition of the Company. Pursuant to the Merger Agreement, at the time at which the Merger became effective, each share of common stock, par value $0.0001 per share, of the Company that was issued and outstanding as of immediately prior to the Effective Time (other than shares owned immediately prior to the Effective Time by the Company, NH Holdings 2025 SPV, L.P., Parent, Merger Sub or any of their respective subsidiaries (including shares contributed to Ultimate Parent prior to the Effective Time pursuant to rollover agreements or other similar agreements), which were canceled for no consideration, and shares of Company Common Stock held by stockholders who properly and validly exercised their statutory rights of appraisal in respect of such shares in accordance with Section 262 of the DGCL) was canceled and extinguished and automatically converted into the right to receive cash in an amount equal to $7.33 per share, payable to the holder thereof, without interest thereon and less any applicable withholding taxes. In connection with the Merger, certain stockholders of the Company, including: (i) the holders of all of the shares of Series A Convertible Perpetual Preferred Stock, par value $0.0001 per share, (ii) the holders of all of the shares of Series B Convertible Perpetual Preferred Stock, par value $0.0001 per share, (iii) the holders of all warrants to purchase shares of Company Common Stock and (iv) certain holders of Company Common Stock, entered into rollover agreements with Ultimate Parent, Parent and Merger Sub, pursuant to which, among other things and on the terms and subject to the conditions set forth therein, the Rollover Holders contributed all of their shares of Company Common Stock, Series A Preferred Stock, Series B Preferred Stock and Company Warrants, as applicable, to Ultimate Parent immediately prior to the Effective Time in exchange for the issuance to the Rollover Holders of limited partnership interests in Ultimate Parent. In addition, pursuant to the Merger Agreement, at the Effective Time: * Each option to purchase shares of Company Common Stock, whether vested or unvested, that had a per share exercise price less than the Per Share Merger Consideration was automatically canceled and terminated and converted into the right to receive an amount in cash equal to the product of: (i) the excess of the Per Share Merger Consideration over the applicable per share exercise price of such option, multiplied by (ii) the total number of shares of Company Common Stock subject to such option immediately prior to the Effective Time. * Each option to purchase shares of Company Common Stock, whether vested or unvested, that had a per share exercise price equal to or greater than the Per Share Merger Consideration was canceled and terminated for no consideration. * Each restricted stock unit of the Company with respect to shares of Company Common Stock that was subject solely to service-based vesting requirements (and not performance-based vesting requirements) was assumed by Parent and adjusted into a restricted stock unit of Parent with respect to a number of shares of common stock of Parent equal to the number of shares of Company Common Stock subject to such Company RSU and otherwise having the same vesting and other terms and conditions as such Company RSU. * Each restricted stock unit of the Company with respect to shares of Company Common Stock that was subject to performance-based vesting requirements was canceled and terminated for no consideration. Intent To Remove Common Stock from NYSE Listing: In connection with the closing of the Merger, the Company notified the New York Stock Exchange of its intent to remove the Company Common Stock from listing on the NYSE and requested that the NYSE file a Notification of Removal from Listing and/or Registration on Form 25 with the SEC to delist the Company Common Stock from NYSE and deregister the Company Common Stock under Section 12(b) of the Securities Exchange Act of 1934, as amended. Upon effectiveness of the Form 25, the Company intends to file with the SEC a Form 15 under the Exchange Act requesting the deregistration of the Company's securities under Section 12(g) of the Exchange Act and the suspension of the Company's reporting obligations under Sections 13 and 15(d) of the Exchange Act. Warrant Agreement: Further on the Closing Date, the Company and NEA 18 Venture Growth Equity, L.P., New Enterprise Associates 15, L.P., New Enterprise Associates 16, L.P. and New Enterprise Associates 17, L.P. entered into a warrantholders agreement pursuant to which the Company issued warrants representing the Holders' right to purchase 1,116,765 shares of Company Common Stock at an exercise price of $0.01 per share. Under the Warrant Agreement, the Warrants were issued in a private placement in reliance on the exemption from the registration requirements of the Securities Act of 1933, as amended, provided by Section 4(a)(2) of the Securities Act. Change in Control of the Company: As a result of the completion of the Merger, a change in control of the Company occurred, and the Company became a wholly owned subsidiary of Parent. The aggregate merger consideration paid to Company stockholders was approximately $22.3 million. The funds used by Parent to consummate the Merger and complete the related transactions came from an increase in the Company's existing subordinated credit facility with NEA and the lenders from time-to-time party thereto. At the closing of the Merger, Kedrick D. Adkins Jr., Linda Gooden, Jeffrey R. Immelt, Manuel Kadre, Stephen Kraus, Mohamad Makhzoumi, G. Mike Mikan, Andrew Slavitt, Robert J. Sheehy and Matthew G. Manders, members of the board of directors of the Company, ceased to be directors of the Company. In accordance with the terms of the Merger Agreement, at the Effective Time, the directors of Merger Sub, Jeffrey R. Immelt, Manuel Kadre, Stephen Kraus, Mohamad Makhzoumi, G. Mike Mikan, Andrew Slavitt, Robert J. Sheehy, Matthew G. Manders and Blake Wu, became the directors of the Surviving Corporation. Additionally, in accordance with the terms of the Merger Agreement, at the Effective Time, the officers of the Company, including G. Mike Mikan, Jay Matushak, Tomas Orozco, Jeffrey J. Scherman and Jeffery M. Craig, became the officers of the Surviving Corporation. A full text of Copy of the Merger Agreement is available at https://tinyurl.com/5xpzmbrc About NeueHealth Inc. Headquartered in Doral, Fla., NeueHealth Inc. -- http://www.neuehealth.com/-- is a value-driven healthcare company rooted in the belief that every health consumer deserves high-quality, coordinated care. The Company operates through two primary segments -- NeueCare and NeueSolutions -- each focused on optimizing the healthcare experience for consumers, providers, and payors with a consumer-centric, value-based care model. NeueCare provides accessible, affordable healthcare across diverse populations, including those in the ACA Marketplace, Medicare, and Medicaid, through both owned and affiliated clinics. NeueSolutions empowers providers and medical groups to succeed in performance-based care models. This segment also participates in the Centers for Medicare & Medicaid Innovation's (CMMI) ACO REACH program, ensuring high-quality healthcare access for Medicare beneficiaries. In its report dated March 21, 2025, Deloitte & Touche LLP, the Company's auditor since 2020, issued a "going concern" qualification attached in the Company's Form 10-K for the year ended Dec. 31, 2024, stating that the Company has a history of operating losses, negative cash flows from operations and does not have sufficient cash on hand or available liquidity to meet its obligations. These conditions raise substantial doubt about its ability to continue as a going concern. As of June 30, 2025, the Company had $743.69 million in total assets, $1.14 billion in total liabilities, and $1.37 billion in total stockholders' deficit. * * * This concludes the Troubled Company Reporter's coverage of NeueHealth Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. NEUEHEALTH INC: New Enterprise Associates No Longer Holds Shares ---------------------------------------------------------------- New Enterprise Associates 17, L.P., et al., disclosed in a Schedule 13D (Amendment No. 9) filed with the U.S. Securities and Exchange Commission that as of October 2, 2025, they no longer beneficially own any shares of NeueHealth, Inc.'s Common Stock, $0.0001 par value, following the consummation of the Merger and the net exercise of Warrants. New Enterprise Associates 17, L.P., et al. may be reached through: Stephanie Brecher, Attorney-in-Fact New Enterprise Associates 1954 Greenspring Drive, Suite 600 Timonium, Md. 21093 Tel: (410) 842-4000 A full-text copy of SEC report is available at: https://tinyurl.com/42h46jn6 About NeueHealth Inc. Headquartered in Doral, Fla., NeueHealth Inc. -- http://www.neuehealth.com/-- is a value-driven healthcare company rooted in the belief that every health consumer deserves high-quality, coordinated care. The Company operates through two primary segments -- NeueCare and NeueSolutions -- each focused on optimizing the healthcare experience for consumers, providers, and payors with a consumer-centric, value-based care model. NeueCare provides accessible, affordable healthcare across diverse populations, including those in the ACA Marketplace, Medicare, and Medicaid, through both owned and affiliated clinics. NeueSolutions empowers providers and medical groups to succeed in performance-based care models. This segment also participates in the Centers for Medicare & Medicaid Innovation's (CMMI) ACO REACH program, ensuring high-quality healthcare access for Medicare beneficiaries. In its report dated March 21, 2025, Deloitte & Touche LLP, the Company's auditor since 2020, issued a "going concern" qualification attached in the Company's Form 10-K for the year ended Dec. 31, 2024, stating that the Company has a history of operating losses, negative cash flows from operations and does not have sufficient cash on hand or available liquidity to meet its obligations. These conditions raise substantial doubt about its ability to continue as a going concern. As of June 30, 2025, the Company had $743.69 million in total assets, $1.14 billion in total liabilities, and $1.37 billion in total stockholders' deficit. * * * This concludes the Troubled Company Reporter's coverage of NeueHealth Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. NEUEHEALTH INC: NYSE to Remove Shares From Listing -------------------------------------------------- The New York Stock Exchange notified the U.S. Securities and Exchange Commission of its intention to remove the common stock of NeueHealth, Inc. from listing and registration on the Exchange pursuant to the provisions of Rule 12d2-2 (a). [ X ] 17 CFR 240.12d2-2(a)(3). That on October 2, 2025, the instruments representing the securities comprising the entire class of this security came to evidence, by operation of law or otherwise, other securities in substitution therefore and represent no other right except, if such be the fact, the right to receive an immediate cash payment. The merger between NeueHealth, Inc. and NH Holdings Acquisition 2025, Inc., a wholly owned subsidiary of NH Holdings 2025, Inc., which are indirectly controlled by private investment funds affiliated with New Enterprise Associates, Inc. became effective on October 2, 2025. Each share of Common Stock of NeueHealth, Inc. was converted into USD $7.33 per share in cash, without interest, less any applicable fee, and tax. The Exchange also notified the Securities and Exchange Commission that as a result of the above indicated conditions, this security was suspended from trading on October 2, 2025. About NeueHealth Inc. Headquartered in Doral, Fla., NeueHealth Inc. -- http://www.neuehealth.com/-- is a value-driven healthcare company rooted in the belief that every health consumer deserves high-quality, coordinated care. The Company operates through two primary segments -- NeueCare and NeueSolutions -- each focused on optimizing the healthcare experience for consumers, providers, and payors with a consumer-centric, value-based care model. NeueCare provides accessible, affordable healthcare across diverse populations, including those in the ACA Marketplace, Medicare, and Medicaid, through both owned and affiliated clinics. NeueSolutions empowers providers and medical groups to succeed in performance-based care models. This segment also participates in the Centers for Medicare & Medicaid Innovation's (CMMI) ACO REACH program, ensuring high-quality healthcare access for Medicare beneficiaries. In its report dated March 21, 2025, Deloitte & Touche LLP, the Company's auditor since 2020, issued a "going concern" qualification attached in the Company's Form 10-K for the year ended Dec. 31, 2024, stating that the Company has a history of operating losses, negative cash flows from operations and does not have sufficient cash on hand or available liquidity to meet its obligations. These conditions raise substantial doubt about its ability to continue as a going concern. As of June 30, 2025, the Company had $743.69 million in total assets, $1.14 billion in total liabilities, and $1.37 billion in total stockholders' deficit. This concludes the Troubled Company Reporter's coverage of NeueHealth Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. NEUEHEALTH INC: Secures $25M Tranche From Hercules in Amended Deal ------------------------------------------------------------------ NeueHealth Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company entered into the Second Amendment to its Loan and Security Agreement, dated June 21, 2024, by and among the Company, the other Loan Parties party thereto, the lenders party thereto and Hercules Capital, Inc., as administrative agent and collateral agent. Pursuant to the Second Amendment, the Company and the lenders agreed to, among other things, modify and extend loan funding milestones and availability period of existing loan commitments, increase the minimum cash covenant level from $15 million to $25 million with two step-downs at $20 million and $15 million subject to achievement of certain milestones, and amend the definition of "Adjusted EBITDA" to add back certain specified costs, expenses and payments. Concurrent with the closing of the Second Amendment, the lenders funded tranche 2A term loans to the Company in an aggregate principal amount of $25 million. In addition, while the loan commitments have been reallocated to different tranches, the aggregate principal amount of loans and commitments under the facility has not changed and the Company continues to have up to $95 million of loan commitments remaining under the facility, consisting of: (x) tranche 2B loan commitments in an aggregate principal amount of $10 million, available through December 15, 2025, (y) tranche 3 loan commitments in an aggregate principal amount of $35 million, available from December 16, 2025 through September 30, 2026, and (z) tranche 4 loan commitments in an aggregate principal amount of up to $50 million, available until June 1, 2027, in each case subject to certain conditions and milestones. The foregoing description of the Second Amendment does not purport to be complete and is subject to and qualified in its entirety by reference to the full text of the Second Amendment, a copy of which is available at https://tinyurl.com/8hkh67 About NeueHealth Inc. Headquartered in Doral, Fla., NeueHealth Inc. -- http://www.neuehealth.com/-- is a value-driven healthcare company rooted in the belief that every health consumer deserves high-quality, coordinated care. The Company operates through two primary segments -- NeueCare and NeueSolutions -- each focused on optimizing the healthcare experience for consumers, providers, and payors with a consumer-centric, value-based care model. NeueCare provides accessible, affordable healthcare across diverse populations, including those in the ACA Marketplace, Medicare, and Medicaid, through both owned and affiliated clinics. NeueSolutions empowers providers and medical groups to succeed in performance-based care models. This segment also participates in the Centers for Medicare & Medicaid Innovation's (CMMI) ACO REACH program, ensuring high-quality healthcare access for Medicare beneficiaries. In its report dated March 21, 2025, Deloitte & Touche LLP, the Company's auditor since 2020, issued a "going concern" qualification attached in the Company's Form 10-K for the year ended Dec. 31, 2024, stating that the Company has a history of operating losses, negative cash flows from operations and does not have sufficient cash on hand or available liquidity to meet its obligations. These conditions raise substantial doubt about its ability to continue as a going concern. As of June 30, 2025, the Company had $743.69 million in total assets, $1.14 billion in total liabilities, and $1.37 billion in total stockholders' deficit. * * * This concludes the Troubled Company Reporter's coverage of NeueHealth Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. NEUEHEALTH INC: StepStone Group Ceases Ownership of Common Stock ---------------------------------------------------------------- StepStone Group, LP disclosed in a Schedule 13D filed with the U.S. Securities and Exchange Commission that as of October 2, 2025, it no longer beneficially owns shares of common stock, as all shares previously held were canceled and converted into the right to receive cash in connection with NeueHealth, Inc.'s business combination. As a result, StepStone Group LP ceased to be the beneficial owner of more than five percent of NeueHealth, Inc.'s common stock, par value $0.0001 per share, representing 0% of the class. StepStone Group LP may be reached through: Jennifer Y. Ishiguro, Partner, Chief Legal Officer StepStone Group LP 4225 Executive Square, Suite 1600 La Jolla, Calif. 92037 Tel: (858) 558-9700 A full-text copy of StepStone Group LP's SEC report is available at: https://tinyurl.com/32w3kcxf About NeueHealth Inc. Headquartered in Doral, Fla., NeueHealth Inc. -- http://www.neuehealth.com/-- is a value-driven healthcare company rooted in the belief that every health consumer deserves high-quality, coordinated care. The Company operates through two primary segments -- NeueCare and NeueSolutions -- each focused on optimizing the healthcare experience for consumers, providers, and payors with a consumer-centric, value-based care model. NeueCare provides accessible, affordable healthcare across diverse populations, including those in the ACA Marketplace, Medicare, and Medicaid, through both owned and affiliated clinics. NeueSolutions empowers providers and medical groups to succeed in performance-based care models. This segment also participates in the Centers for Medicare & Medicaid Innovation's (CMMI) ACO REACH program, ensuring high-quality healthcare access for Medicare beneficiaries. In its report dated March 21, 2025, Deloitte & Touche LLP, the Company's auditor since 2020, issued a "going concern" qualification attached in the Company's Form 10-K for the year ended Dec. 31, 2024, stating that the Company has a history of operating losses, negative cash flows from operations and does not have sufficient cash on hand or available liquidity to meet its obligations. These conditions raise substantial doubt about its ability to continue as a going concern. As of June 30, 2025, the Company had $743.69 million in total assets, $1.14 billion in total liabilities, and $1.37 billion in total stockholders' deficit. * * * This concludes the Troubled Company Reporter's coverage of NeueHealth Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. NEW GRANT: Case Summary & 17 Unsecured Creditors ------------------------------------------------ Debtor: New Grant Acquisitions, LLC 5401 Victoria Avenue Davenport, IA 52807 Business Description: New Grant Acquisitions, LLC is a real estate lessor with its principal assets located at 44 Broad Street NW in Atlanta, Georgia. Chapter 11 Petition Date: October 6, 2025 Court: United States Bankruptcy Court Northern District of Georgia Case No.: 25-61599 Debtor's Counsel: J. Robert Williamson, Esq. SCROGGINS, WILLIAMSON & RAY, P.C. 4401 Northside Parkway Suite 230 Atlanta, GA 30327 Tel: 404-893-3880 Email: rwilliamson@swlawfirm.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Brent Crittenden as authorized agent. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/TRBZHRY/New_Grant_Acquisitions_LLC__ganbke-25-61599__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 17 Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Paulson-Cheek Services/Materials $2,020,752 Mechanical, Inc. 6145 Northbelt Parkway Suite F Norcross, GA 30071 William Hagler Email: whagler@paulsoncheek.com 2. Rawlins Mechanical Co. LLC Services/Materials $1,361,711 5190 Piney Grove Road Cumming, GA 30040 James Beddington Email: james@rawlinsmech.com 3. Vantix Electric, LLC Services/Materials $1,353,263 238 Cadillac Parkway Dallas, GA 30157 John Hand Email: j.hand@vantixelectric.com 4. Greenworks Lending, Inc. PACE Loan $1,190,000 19 Old Kings Highway South Suite 210 Darien, CT 06820 Rob Bewkes Email: robert.bewkes@nuveen.com 5. Metro Green Services/Materials $511,590 Development LLC 2135 Defoor Hills Road, NW Suite D Atlanta, GA 30318 Cole Vickers Email: cvickers@metrogreenusa.com 6. JSL Construction Inc. Services/Materials $411,108 2940 Horizon Park Drive Suite E Suwanee, GA 30024 Augustin Salcedo Email: asalcedo@jslconstruction.com 7. Southern Surfaces Inc. Services/Materials $338,667 4550 Atwater Court Suite 211 Buford, GA 30518 Ryan Whitinger Email: rwhitinger@southernsurfaces.net 8. ABR Fire Protection, Inc. Services/Materials $238,875 4953 Austin Park Ave. Suite A Buford, GA 30518 Josh Stevens Email: jstephens@superherofire.com 9. Peachtree Demolition, LLC Services/Materials $143,162 2030 Powers Ferry Road Suite 250 Atlanta, GA 30339 Gavin Johnson Email: gavin@peachtreedemo.com 10. 1 Priority Services/Materials $74,461 Environmental Serv. 4028 Daley Ave. Fort Worth, TX 76180 J. Garcia Email: jgarcia@go1priority.com 11. Kone, Inc. Services/Materials $42,328 PO Box 734874 Chicago, IL 60673 Steve McIntosh Email: steve.mcintosh@kone.com 12. Vanities International, LLC Services/Materials $35,000 480 Town Center St. N Suite 442 Mooresville, IN 46158 Jessica H. Email: jessicah@vanitiesint.com 13. JVG Civil Engineering, Inc. Services/Materials $4,500 PO Box 7280 Atlanta, GA 30357 V. Hicks Email: vhicks@jvgconsult.com 14. Shear Structural, LLC Services/Materials $3,589 931 Monroe Drive Suite A102-491 Atlanta, GA 30308 Malory Atkinson Email: matkinson@shearstructural.com 15. Lincoln Savings Bank Bridge Loan Unknown 1922 Ingersoll Avenue Des Moines, IA 50309 Bradie Chwirka Email: bradie.chwirka@mylsb.com 16. UC Grant Building Construction Loan Unknown Holder, LLC c/o UC Credit Services, LLC 745 Boylston Street, Suite 502 Boston, MA 02116 Loan Servicing Email: dchampa@ucfunds.com 17. Georgia Power Company Utilities $2,505 Attn: Kristi Dow, Reg. Agent 241 Ralph McGill Blvd, Bin #10180 Atlanta, GA 30308-3374 Email: KLDow@southernco.com NEW NORMAL BREWING: Owners Seek Chapter 11 Bankruptcy in California ------------------------------------------------------------------- Ian Bradley of KTVU FOX 2 reports that Oakland-based Temescal Brewing announced on Friday, October 10, 2025, that it is beginning the process of filing for Chapter 11 bankruptcy. The announcement was made in an Instagram post by CEO and owner Brandon Borgel, who explained that the COVID-19 pandemic disrupted the company's growth trajectory and left it facing "an overwhelming amount of debt." Borgel emphasized that the filing does not mean the brewery is closing. "Temescal Brewing is not closing," he wrote. The Chapter 11 process will allow the company to continue operating while restructuring its business for long-term sustainability. Despite ongoing challenges in the beer industry, Börgel noted that Temescal's sales remain strong and continue to trend upward. The bankruptcy filing highlights broader trends in the craft beer market, including declining interest among younger consumers. A 2023 Gallup survey found that only 62% of adults under 35 reported ever drinking alcohol between 2021 and 2023, down 10% from 20 years earlier. According to court filings, Temescal's parent company, New Normal Brewing, LLC, reports $50,000 to $100,000 in assets and $500,000 to $1 million in liabilities. The pandemic also disrupted expansion plans, which had included a new facility in Jack London Square that was finalized in 2019, the report states. The broader craft beer industry has seen declining sales and consolidation. The Brewers Association reported a 4% drop in craft beer sales over the past year. Several breweries have closed recently, including San Francisco's 21st Amendment Brewery, which will shut its doors on November 1, 2025. Others have merged to survive, such as Fort Point Beer Co. and HenHouse Brewing Co., which combined earlier this year. Temescal's Chapter 11 filing reflects both the financial strain and changing market dynamics facing independent breweries today, the report relays. About New Normal Brewing New Normal Brewing LLC, doing business as Temescal Brewing, is an Oakland-based brewery. New Normal Brewing LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-41895) on October 9, 2025. In its petition, the Debtor reports estimated assets between $50,001 and $100,000 and estimated liabilities between $500,001 and $1 million. The Debtor is represented by Christopher Hart, Esq. of Nuti Hart LLP. NOISA INC: Case Summary & 18 Largest Unsecured Creditors -------------------------------------------------------- Three affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Noisa, Inc. (Lead Case) 25-22682 DBA Las Velas Mexican Restaurant 21 Market Square Pittsburgh, PA 15235 Isano, Inc. 25-22680 DBA Madero Cantino Murrysville 4462 William Penn Hwy. Murrysville, PA 15668 Isano 3, Inc. 25-22681 DBA La Cantina by Madero 370 Atwood St. Pittsburgh, PA 15213 Business Description: Noisa, Inc., doing business as Las Velas Mexican Restaurant, operates a full-service Mexican dining establishment offering a range of traditional dishes and catering services in Pennsylvania. Isano, Inc., doing business as Madero Cantina Murrysville, runs a Mexican restaurant in Murrysville featuring tacos, burritos, enchiladas, and other regional fare. Isano 3, Inc., doing business as La Cantina by Madero, manages a restaurant concept that combines Mexican staples with American casual items such as wings and burgers, operating as part of the same broader restaurant group in the state. Chapter 11 Petition Date: October 6, 2025 Court: United States Bankruptcy Court Western District of Pennsylvania Judge: Hon. Carlota M Bohm Debtors' Counsel: David Z. Valencik, Esq. CALAIARO VALENCIK 555 Grant Street Suite 300 Pittsburgh, PA 15219 Tel: 412-232-0930 Fax: 412-232-3858 Email: dvalencik@c-vlaw.com Noisa, Inc.'s Estimated Assets: $100,000 to $500,000 Noisa, Inc.'s Estimated Liabilities: $500,000 to $1 million Isano, Inc.'s Estimated Asset: $100,000 to $500,000 Isano, Inc.'s Estimated Liabilities: $1 million to $10 million Isano 3, Inc.'s Estimated Assets: $100,000 to $500,000 Isano 3, Inc.'s Estimated Liabilities: $500,000 to $1 million The petitions were signed by David Montanez as owner. Full-text copies of the petitions are available for free on PacerMonitor at: https://www.pacermonitor.com/view/X7P5AKY/Noisa_Inc__pawbke-25-22682__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/WRL3QOI/Isano_Inc__pawbke-25-22680__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/XBEDOSA/Isano_3_Inc__pawbke-25-22681__0001.0.pdf?mcid=tGE4TAMA NOVA CHEMICALS: S&P Places 'BB-' ICR on CreditWatch Positive ------------------------------------------------------------ S&P Global Ratings placed all its ratings on NOVA Chemicals Corp., including its 'BB-' issuer credit rating, on CreditWatch with positive implications. S&P plans to resolve the CreditWatch placement around the time of the close of the BGI acquisition of NOVA. S&P believes the acquisition of NOVA Chemicals Corp. ultimately by Borouge Group International (BGI), which will be majority owned by Abu Dhabi National Oil Co. (ADNOC) and OMV AG, will result in a multiple-notch upgrade of NOVA. BGI will be the fourth-largest polyolefins producer globally. Based on public statements by prospective new ownership, the transaction is progressing well, with a majority of regulatory approvals and debt financing now secured. While NOVA's stand-alone credit metrics are currently stretched from industry weakness and a potential near-term litigation payment, S&P believes it will maintain sufficient liquidity until the BGI acquisition closes, which it expects to occur in the first quarter of 2026. S&P said, "We believe NOVA's ultimate acquisition by BGI will close in the first quarter of 2026 and will result in a multiple-notch upgrade of NOVA. In March 2025, ADNOC and OMV signed a binding agreement to merge their petrochemical businesses, Borealis AG and Borouge PLC, into Borealis Group International (BGI), and subsequently acquire NOVA Chemicals from Mubadala Investment Co. BGI will be majority owned by ADNOC and OMV with a minority stake in free float. This will form the fourth-largest polyolefins producer globally, with a combined polyolefins nameplate production capacity of about 13.6 million tons annually. We expect the merged business to be rated higher than NOVA and potentially result in an upgrade of NOVA by multiple notches, given our expectation of NOVA's importance to the group. "The merger transaction is subject to some pending regulatory approvals. We expect the acquisition of NOVA to close in the first quarter of 2026, based on our conversations with the company's management and recent public statements by ADNOC and OMV, which state that most regulatory approvals have been obtained and debt to fund the NOVA acquisition has been secured. Additionally, ADNOC recently announced its plans to transfer its eventual ownership of BGI to holding company XRG P.J.S.C., a wholly-owned subsidiary that is its international energy and chemicals investment arm. It has already transferred several equity stakes in its listed companies to XRG. We believe NOVA will be an important part of the new group along with Borouge and Borealis, adding to our confidence in the transaction closing in the targeted timeframe. We do not expect NOVA's ongoing litigation with Dow Chemical to hinder closing the transaction or result in any uncovered liabilities for the new ownership." The company has enough liquidity to address a potential litigation payment to Dow in coming months. NOVA has a longstanding dispute with Dow concerning the operation of a jointly owned ethylene production facility in Joffre, Alberta. It has already paid damages in 2019 during one phase of the litigation. In June 2025, a court ruled additional restitution to Dow of an incremental amount of C$1.62 billion (equating to US$1.2 billion). The company has filed appeals on this ruling, as well as a stay application on this payment. S&P said, "Our base case assumes NOVA will pay US$1.3 billion (including related costs) in the coming months if the stay is denied. Some litigation uncertainties include how long the appeals process takes and what the ultimate payout might be post-appeals. We believe NOVA has the capacity to address a potential liability payment of US$1.3 billion. NOVA has near full availability on its revolver, room under its accounts receivables securitization facilities and some cash on the balance sheet. NOVA's operating performance has weakened in line with industry pressures. In the face of ongoing market pressures, NOVA's operating performance has deteriorated the first half of 2025, particularly in the second quarter, when its S&P Global Ratings-adjusted EBITDA was about half of the comparable period last year. This primarily stemmed from weak industry pricing for polyethylene while volumes improved over last year with strong export sales after building up inventory in the first quarter to mitigate tariffs. Trade uncertainties still persist and market conditions remain soft as the global petrochemicals industry remains oversupplied. "In light of our weaker earnings forecast revision, we now expect weighted average S&P Global Ratings-adjusted debt to EBITDA of 5.5x-6.5x and funds from operations (FFO) to debt of 10%-12%, which is stretched at the current rating. In the meantime, NOVA is focusing its capital expenditure (capex) on sustenance needs and key turnaround projects to offset weak margins, and appears focused to ensure it has sufficient liquidity until the BGI transaction closes. "We plan to resolve the CreditWatch when NOVA's acquisition by BGI closes, which we anticipate will occur in the first quarter of 2026. We would likely raise our ratings by multiple notches if NOVA is acquired by BGI, which will have a stronger business profile than NOVA, and if NOVA has at least the same strategic importance as it currently has to Mubadala, if not higher. We will review NOVA's pro forma capital structure post-acquisition as it becomes clearer. In the meantime, we will continue to monitor any developments related to the transaction, including the receipt of necessary regulatory clearances. "Over the coming quarters, we will also monitor NOVA's stretched stand-alone credit metrics, as well as its liquidity. We believe NOVA has the capacity to address a potential liability payment to Dow of US$1.3 billion. "We could take a negative rating action if the company's current underperformance and industry weakness persists such that metrics do not improve from our current base case of FFO to debt below 12% and if we expect the BGI acquisition to be delayed beyond first-quarter 2026 or to a point where liquidity or covenant compliance becomes challenged." OLD SCHOOL: Plan Exclusivity Period Extended to April 6, 2026 ------------------------------------------------------------- Judge Craig T. Goldblatt of the U.S. Bankruptcy Court for the District of Delaware extended Old School, Inc.'s exclusive periods to file a plan of reorganization and obtain acceptance thereof to April 6, 2026 and June 3, 2026, respectively. As shared by Troubled Company Reporter, the Debtor explains that cause exists to extend the Exclusive Periods. First, the Debtor and its professionals have made significant progress in moving this Chapter 11 Case to a successful completion, including: (a) successfully completing the sale of substantially all of its assets; (b) preparing and filing the schedules of assets and liabilities and the statement of financial affairs; (c) preparing and filing the Debtor's monthly operating reports; (d) filing the Combined Disclosure Statement and Plan and the Solicitation Procedures Motion; and (e) continuing negotiations with its key stakeholders regarding a potential exit path from chapter 11. Second, allowing the expiration of the Exclusive Periods at this critical stage would serve only to interfere with the progress of this Chapter 11 Case. Now that the Debtor has sold substantially all of its assets and is winding down, the Debtor requires additional time to solicit the Combined Disclosure Statement and Plan on the timeline required by Local Rule 3017-2 and engage in discussions with key stakeholders regarding support for the Combined Disclosure Statement and Plan. Lastly, creditors will not be harmed by extending the Exclusive Periods. This Motion is the Debtor's first request for an extension of the Exclusive Periods. The Debtor is not seeking the extension of the Exclusive Periods to delay administration of this Chapter 11 Case or to exert pressure on its creditors, but rather to allow the Debtor to continue with winding-down its operations, liquidating any remaining assets for the benefit of creditors, prosecute the Combined Disclosure Statement and Plan, and work to achieve a value-maximizing close of this Chapter 11 Case in the most cost-efficient manner. Counsel for the Debtor: POTTER ANDERSON & CORROON LLP Aaron H. Stulman, Esq. Brett M. Haywood, Esq. James R. Risener III, Esq. Ethan H. Sulik, Esq. 1313 North Market Street, 6th Floor Wilmington, Delaware 19801 Tel: (302) 984-6000 Facsimile: (302) 658-1192 Email: astulman@potteranderson.com bhaywood@potteranderson.com jrisener@potteranderson.com esulik@potteranderson.com GOODWIN PROCTER LLP Howard S. Steel, Esq. Stacy Dasaro, Esq. Kizzy L. Jarashow, Esq. James Lathrop, Esq. The New York Times Building 620 Eighth Avenue New York, New York 10018-1405 Tel: (212) 813-8800 Facsimile: (212) 355-3333 Email: hsteel@goodwinlaw.com sdasaro@goodwinlaw.com kjarashow@goodwinlaw.com jlathrop@goodwinlaw.com About Old School Inc. Old School, Inc., is a non-public corporation incorporated in Delaware. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11016) on June 8, 2025, with $10,000,001 to $50 million in assets and liabilities. Judge Craig T. Goldblatt presides over the case. James R. Risener, III, Esq. at Potter Anderson & Corroon LLP represents the Debtor as legal counsel. ORION ADVISOR: Moody's Affirms B3 CFR & Cuts First Lien Debt to B3 ------------------------------------------------------------------ Moody's Ratings affirmed Orion Advisor Solutions, Inc. (Orion) B3 corporate family rating and B3-PD probability of default rating. Concurrently, Moody's downgraded the company's rating on the first-lien senior secured bank credit facility, comprised of an $80 million revolver expiring 2029 and a $1,127 million term loan due 2030 (pro forma for the proposed upsize), to B3 from B2. The outlook is stable. The company is a provider of software solutions and other services to wealth/asset managers in the US market. The rating actions are driven by Moody's expectations that Orion will use the proceeds from the proposed $100 million add-on to partially repay around $97 million of Orion's second-lien debt (unrated). The proposed transaction and subsequent paydown of the second-lien is expected to be leverage neutral. The downgrade of the first-lien senior secured bank credit facility rating follows the proposed partial repayment of Orion's second-lien debt, which eliminates the loss absorption benefits from subordinated debt. RATINGS RATIONALE Orion's B3 CFR is constrained by the company's very high debt/EBITDA of approximately 8.7x for the trailing 12-month period ending June 30, 2025 (based on Moody's calculations including adjustments for operating leases). The credit profile is also negatively impacted by the company's small scale relative to larger competitors within the financial services vertical market, industry concentration risk, and exposure to capital markets volatility. Additionally, corporate governance concerns related to Orion's concentrated ownership by private equity firms Genstar Capital ("Genstar") and TA Associates ("TA") weigh on the company's credit profile, particularly with respect to the potential for a continuation of aggressive financial strategies including debt-funded acquisitions and dividends. These concerns associated with the issuer's credit profile position Orion weakly in the B3 rating category, but are partially offset by the company's highly recurring revenue business model with strong sales growth supported by SaaS offerings and secular demand for Orion's Turnkey-Asset Management Program ("TAMP") services. Additionally, the company's credit quality is bolstered by strong profitability metrics and Moody's expects Orion to sustain adequate liquidity in the coming 12-15 months. The ratings for Orion's first-lien credit facilities reflect both the B3 CFR and the B3-PD probability of default rating. Because the first-lien credit facilities represent the preponderance of debt in the capital structure, pro forma for the proposed partial repayment of Orion's second-lien debt, the senior secured first-lien credit facilities are rated B3, in line with the B3 corporate family rating. Despite a modest cash balance of around $9 million as of June 30, 2025 and Moody's expectations of 1%-2% free cash flow generation over the next 12-15 months, Orion's liquidity is considered adequate. The company has access to an undrawn $80 million revolving credit facility but Moody's views the size as small relative to fixed charges and anticipate Orion will periodically access the capacity over the next 12-15 months to cover approximately $11 million of annual required first-lien term loan amortization. While Orion's rated term loan is not subject to financial covenants, the revolving credit facility has a springing covenant based on a maximum net leverage ratio of 8.7x which the company should be in compliance with over the next 12-18 months. The stable rating outlook reflects Moody's expectations that Orion's revenue will increase at a high single-digit annual rate over the next 12-18 months. Moody's expects some margin pressure on margins resulting in muted EBITDA growth in 2025, before more robust gains in 2026. Moody's expects debt/EBITDA to approach the low 7x level by the end of 2025 and the mid 6x level by 2026. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Orion realizes consistent revenue and EBITDA growth while adhering to a conservative financial policy such that debt/EBITDA (based on Moody's calculations) is expected to approach 6.0x and annual free cash flow is maintained at approximately 5% of debt. The ratings could be downgraded if Orion were to experience a weakening competitive position, sustained free cash flow deficits, or the company maintains aggressive financial policies that result in a further increase in debt leverage. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. Orion, owned principally by TA and Genstar, provides software solutions and other services to wealth/asset managers in the US market. Moody's expects the company to generate annual revenue of approximately $540 million in 2025. ORION ADVISOR: S&P Affirms 'B-' ICR, Outlook Stable --------------------------------------------------- S&P Global Ratings affirmed its 'B-' issuer credit rating on Orion Advisor Solutions Inc. S&P lowered its issue-level rating on the company's first-lien debt to 'B-' from 'B' and revised our recovery rating to '3' from '2', primarily driven by the increase in first-lien debt. The stable outlook reflects S&P's expectation of EBITDA expansion and free operating cash flow (FOCF) generation sufficient to cover all fixed charges and maintain EBITDA coverage of total interest above 1.2x. Orion's recent performance has been improving, above our expectations, and should further benefit from the recently proposed upsizing of its existing term loan B to repay more expensive second-lien debt and rate reduction on its outstanding second-lien term loan. Orion's operating performance improved year to date through June 2025 and on a trailing-12-month basis through Aug. 31, 2025, with support from greater technology adoption, growth in client assets, and stronger execution. Technology revenue increased 12% on robust new client wins, expansion within existing accounts, and targeted price actions. Technology bookings were $6.4 million in the quarter, with first-half bookings at $14.4 million, which is up 32% year over year. Wealth management revenue declined 3%, reflecting weaker equity markets at the end of the March quarter and lower Brinker assets under management, partly offset by strong growth in custom indexing and OCIO. Annualized net flow lift in wealth management rose to 14.8% from 8.1% in the second quarter of 2024. Recurring revenue was 97% of its total revenue (subscription 55%, asset-based 45%). Subscription arrangements, including portfolio accounting, are contracted at the firm level, typically cover all assets and run for three years with automatic one-year renewals and post-initial price escalators. It bases pricing on custodial accounts with high minimums. Technology platform annual recurring revenue ended the quarter at $251.6 million, up 12% year over year. Asset-based recurring revenue is linked to platform asset values, and most clients are billed quarterly in advance. Platform assets under management ended the quarter at $107.4 billion, up 24% year over year. S&P said, "We expect cash flow generation to improve, benefiting from good operational performance and lower interest expenses. The first-lien add-on and opportunistic repricing of Orion's second-lien term loan (seeking to reduce the spreads by 200 basis points {bps} to S+5.75% from S+7.5%) reduces interest expenses about $8 million, lowering its overall cost of debt for the second time in 2025. The company is also proposing to push out the maturity on its second-lien term loan by one year. Earlier this year, the company successfully upside its first-lien term loan by $100 million, achieving a cost reduction of 50 bps to 3.25% and used the proceeds to repay second-lien debt and fees associated with the transaction. We estimate the company also saved about $8 million with the first transaction, bringing total interest savings to about $16 million. Pro forma for the proposed transaction, the company's second-lien term loan, total outstanding balance will decline to $167 million from $325 million at the beginning of the year and the company is also proposing an extension of its maturity one year to 2029. "The company's ongoing debt management and EBITDA growth and cash flow generation expectations support our view of a sustainable capital structure. Pro forma for the transaction, Orion's leverage was high at about 10.6x on June 30, 2025, but this includes one-time restructuring and refinancing costs associated with its global outsourcing initiative, which we expect to roll off by 2026 and produce $15 million to $20 million in net run-rate savings. We expect leverage to decline to 9x in 2026 from EBITDA growth. We also expect the company to generate cash flow in excess of all fixed charges in fiscal 2025 and 2026. Moreover, as the company continues to improve its EBITDA and cash flow generation, we expect EBITDA coverage of total interest (including paid-in-kind {PIK} interest associated with its preferred stock) to improve to 1.4x in 2026. "The stable outlook reflects our expectation of EBITDA expansion and FOCF generation sufficient to cover all fixed charges and maintain EBITDA coverage of total interest above 1x. "We could lower our rating on Orion if we view its capital structure as unsustainable, evidenced by insufficient FOCF to cover debt service, a significant draw on its revolving credit facility that pressures liquidity, or the inability to extend its second-lien maturity beyond 2028." This could be the result of: -- A sustained drop in assets under management; -- Deterioration in retention and outflows in its wealth platform; -- Operating underperformance due to competition or inability to continue developing products and tools for its customers; or -- EBITDA interest coverage approaching 1x. Although unlikely over the next 12 months based on its current forecast, S&P could raise its rating on Orion if: -- It sustains S&P Global Ratings-adjusted leverage below 7x; -- Improves its FOCF to debt to the mid-single-digit percentage area or above; and -- Improves its EBITDA interest coverage close to 2x. P4 EXECUTIVE: Seeks to Hire CM Law PLLC as Bankruptcy Counsel ------------------------------------------------------------- P4 Executive Investments LLC seeks approval from the U.S. Bankruptcy Court for Northern District of Texas to hire CM Law PLLC as attorneys. The firm's services include: a. advising the Debtors of its rights, powers and duties as Debtors-in-possession under the Bankruptcy Code; b. performing all legal services for and on behalf of the Debtors that may be necessary or appropriate in the administration of this bankruptcy case and the Debtors' business; c. advising the Debtors concerning, and assisting in, the negotiation and documentation of financing agreements and debt restructurings; d. counseling the Debtors in connection with the formulation, negotiation, and consummation of a possible sale of the Debtors or its assets; e. reviewing the nature and validity of agreements relating to the Debtors' interests in real and personal property and advising the Debtors of its corresponding rights and obligations; f. advising the Debtors concerning preference, avoidance, recovery, or other actions that they may take to collect and to recover property for the benefit of the estate and its creditors, whether or not arising under Chapter 6 of the Bankruptcy Code; g. preparing on behalf of the Debtors all necessary and appropriate applications, motions, pleadings, draft orders, notices, schedules, and other documents and reviewing all financial and other reports to be filed in this bankruptcy case; h. advising the Debtors concerning, and preparing responses to, applications, motions, complaints, pleadings, notices, and other papers that may be filed and served in this bankruptcy case; i. counseling the Debtors in connection with the formulation, negotiation, and promulgation of a plan of reorganization and related documents or other liquidation of the estate; j. working with and coordinating efforts among other professionals to attempt to preclude any duplication of effort among those professionals and to guide their efforts in the overall framework of Debtors' reorganization or liquidation; and k. working with professionals retained by other parties in interest in this bankruptcy case to attempt to structure a consensual plan of reorganization, liquidation, or other resolution for Debtors. Richard G. Grant, the attorney handling the case will be paid $500 per hour. Prior to the petition date, the firm received a retainer in the amount of $100,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Richard G. Grant, Esq., a partner at CM Law PLLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Richard G. Grant, Esq. CM Law PLLC 13101 Preston Road, Suite 110-1510 Dallas, TX 75240 Tel: (214) 210-2929 Email: rgrant@cm.law About P4 Executive Investments LLC P4 Executive Investments LLC, based in Longview, Texas, provides real estate services, including buying, selling, and renting properties, and operates under NAICS code 5312 (Offices of Real Estate Agents and Brokers). P4 Executive Investments LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-43393) on September 7, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. Honorable Bankruptcy Judge Mark X. Mullin handles the case. The Debtor is represented by Richard Grant, Esq. at CM LAW PLLC. PALAZZO DEVELOPMENT: Cash Collateral Hearing Set for Oct. 22 ------------------------------------------------------------ The U.S. Bankruptcy Court, Middle District of Florida, Fort Myers Division, is set to hold a hearing on October 22 to consider another extension of Palazzo Development Group, Inc.'s authority to use cash collateral. The Debtor's authority to use cash collateral pursuant to the court's interim order expires on October 22. The interim order signed by Judge Caryl Delano on September 19 approved the payment of the Debtor's expenses from the cash collateral in accordance with its budget, subject to a 10% variance per line item. As adequate protection, the interim order granted secured creditors, John and Anna Wagener, replacement liens on the Debtor's post-petition assets to the same extent as their pre-bankruptcy liens. It also approved a monthly payment of $1,000 to Ms. Wagener, starting this month. The Wageners hold security interests in the Debtor's Truist deposit accounts, which may constitute cash collateral. About Palazzo Development Group Palazzo Development Group, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01721) on September 3, 2025, with $100,001 to $500,000 in assets and liabilities. Judge Caryl E. Delano presides over the case. Jonathan M. Bierfeld, Esq., at Martin Law Firm Pl represents the Debtor as bankruptcy counsel. PALOMAR HEALTH: S&P Lowers Debt Ratings to 'CCC+', On Watch Neg. ---------------------------------------------------------------- S&P Global Ratings lowered its long-term rating to 'CCC+' from 'B' on the California Municipal Finance Authority's revenue bonds and certificates outstanding issued for Palomar Health (Palomar) and on its long-term and underlying (SPUR) ratings on Palomar's general obligation (GO) bonds and placed the ratings on CreditWatch with negative implications. S&P said, "The CreditWatch placement reflects our view that there is a one-in-two chance that the rating could be lowered within the next 90 days, possibly by multiple notches. "The lower rating reflects our view of Palomar's extremely thin unrestricted reserves that have weakened considerably since our review in January 2025. In our view, Palomar remains highly vulnerable and dependent on favorable business, financial, and economic conditions to meet its financial commitments. "We view Palomar's governance structure as a weakness in our analysis given the public tension at the board in the past few years. Palomar's decision to enter into a management services agreement for the day-to-day operations of the hospital has been paused for 12 months as Palomar focuses on operational improvement, and the district board retains ultimate oversight authority of the hospitals in any event. In addition, we view management and governance risk as elevated due to very limited liquidity to manage any unexpected events. "We view human capital risks as elevated given 73% of the total workforce is unionized and members of the California "Nurses Assn. and/or the California Healthcare Employees Union. While the contracts are in place, we view Palomar's exposure to unions as a potential credit risk given the hospital has less flexibility to manage staffing expenses as it works to improve operating performance. There are also other staffing challenges, although management has made some improvement in this area. "We view physical risk as elevated given Palomar's location in an area susceptible to earthquakes and wildfires, which could affect utilization and facilities. Palomar has met all seismic standards at both Palomar Medical Center (PMC) Escondido and PMC Poway. "The CreditWatch placement reflects our view that there is a one-in-two chance the rating could be lowered within the next 90 days if Palomar is unable to further secure or get closer to securing its partnership with UCSDH and maintain unrestricted reserves, at minimum, while continuing to make timely debt service payments on all outstanding debt and loans." PAPA JOHN'S: S&P Affirms 'BB-' ICR, Outlook Stable -------------------------------------------------- S&P Global Ratings affirmed its 'BB-' issuer credit rating on Papa John's International Inc. and affirmed its 'B+' issue-level rating on the company's senior notes due 2029. S&P said, "The stable outlook reflects our expectation that Papa John's will maintain steady operating performance, supporting positive S&P Global Ratings-adjusted free operating cash flow (FOCF) to debt in the mid-9% area and S&P Global Ratings-adjusted leverage in the high-3x area over the next 12 months. "We expect Papa John's credit metrics to remain in line with the rating despite leverage moderately above our prior expectations. On the back of a softer consumer environment and commodity prices pressuring margins, the company's S&P Global Ratings-adjusted leverage increased to the high-3x area as of last-12-months (LTM) second-quarter 2025. We expect leverage to remain in this area in 2025 and 2026 as the company manages its cost profile and mitigates near-term headwinds to same-store performance with investments in marketing and continued build-out of its international operations. "We also expect the company to manage cash flow, leading to S&P Global Ratings-adjusted FOCF to debt in the mid- to low-10% area. At this level, we believe Papa John's would be able to fund its quarterly dividend payments of roughly $15 million, with some flexibility for potential debt paydown. "We expect modest sales growth and steady profitability metrics over the next 12 months despite a challenging macroeconomic backdrop. During the second quarter (ended June 29, 2025), Papa John's total revenue increased 4% year over year, with consolidated comparable same-restaurant sales up 1.6% as higher ticket and royalty fees were offset by refranchising of certain locations during the quarter." Papa John's transaction in North America has grown 1% as it leans into its barbell approach and return to product innovation like the Cheddar Crust Pizza on the upper end of the barbell and the Shaq-a-roni becoming more permanent menu items. This helped drive customer foot traffic in the second quarter. However, S&P believes consumers will remain cautious with discretionary spending, particularly lower-income consumers, through the remainder of 2025 and into 2026. S&P said, "Given this view, we forecast the U.S. QSR industry will grow 0%-1% in 2025, with traffic declines in the low-single-digit percent area mostly offset by larger checks. As such, we expect sales will be roughly flat to grow 2% this year and in fiscal 2026 as the company offsets customer traffic challenges with its menu relevancy, value messaging, and enhanced convenience through its delivery and digital channels. We anticipate this will enable Papa John's to navigate the challenging environment successfully over the longer term." S&P Global Ratings-adjusted EBITDA margins have been pressured through the first half of 2025. Papa John's EBIDA margins contracted roughly 125 basis points through the second quarter of 2025, stemming from incremental marketing and loyalty program investments, labor inflation, and higher costs for certain commodities like cheese and protein. Going forward, S&P expects the company to offset some of these pressures through cost management initiatives, largely related to its U.S. supply chain, which it expects will generate $50 million of full run-rate benefit by 2028. S&P said, "Additionally, we believe its international transformation, including the closure and divestiture of underperforming locations in the UK, should help support its margin profile. That said, Papa John's recent increase in its marketing investments, targeting customer relationships and its loyalty platform, is largely offsetting near-term initiatives. As a result, we anticipate margins will remain relatively flat in 2025 and 2026 in the mid- to high-11% range. "The stable outlook reflects our expectation that Papa John's will maintain a relatively steady operating performance over the next 12 months despite softer customer discretionary spending. We expect consistent FOCF generation and profitability metrics, leading to S&P Global Ratings-adjusted leverage of about 4x over the next 12 months." S&P could lower its rating on Papa John's over the next 12 months if credit measures deteriorate, notably if S&P comes to expect S&P Global Ratings-adjusted leverage to be sustained well above 4.0x. This could occur if: -- The company shifts to a more aggressive financial policy while increasing debt to fund an acquisition or shareholder returns; or -- An unfavorable economic environment, heightened industry competition, or food-safety issues lead to sharply weaker operating results without prospects of near-term operating improvement or debt reduction. Although unlikely over the next 12 months due to a challenging operating environment, S&P could consider an upgrade if Papa John's: -- Sustains operating performance gains and improvement in scale, supported by positive comparable sales, successful new restaurant development, and solid margin expansion; or -- Operating results exceed S&P's base case, resulting in S&P Global Ratings-adjusted debt to EBITDA sustained at or below 3x, while clearly committing to a more conservative financial policy. PARK 54 RESTAURANT: Seeks Subchapter V Bankruptcy in Massachusetts ------------------------------------------------------------------ On October 10, 2025, Park 54 Restaurant Group LLC initiated voluntary Chapter 11 bankruptcy proceedings in the District of Massachusetts. Documents filed with the court indicate that the restaurant group's total liabilities ranging from $1 million to $10 million. The filing further notes that Park 54 Restaurant Group LLC has an estimated 50 to 99 creditors. About Park 54 Restaurant Group LLC Park 54 Restaurant Group LLC is a limited liability company. Park 54 Restaurant Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 25-12185) on October 10, 2025. In its petition, the Debtor reports estimated assets between $100,001 and $1 million and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Christopher J. Panos handles the case. The Debtor is represented by David B. Madoff, Esq. of Madoff & Khoury LLP. PAULAZ ENTERPRISES: Court Extends Cash Collateral Access to Oct. 23 ------------------------------------------------------------------- Paulaz Enterprises, Inc. received another extension from the U.S. Bankruptcy Court for the Southern District of Florida to use cash collateral to fund operations. The court issued its fourth interim order allowing the Debtor to use cash collateral through October 23 to pay the expenses set forth in its budget, subject to a 10% variance per line item. During the interim period, all income generated before and after the Debtor's Chapter 11 filing must be deposited into its debtor-in-possession account. As adequate protection, replacement liens will be granted to Wells Fargo Bank, N.A. and other secured creditors, matching the scope and priority of their pre-bankruptcy liens. The Debtor may challenge the extent or validity of those liens later. In addition, Wells Fargo will continue to receive a monthly payment of $8,500 as further protection. Failure to pay may end cash collateral authority. The order also required the Debtor to transfer $1,000 per month to the Subchapter V trustee’s escrow account and $4,000 per month to its counsel's trust account for professional fees. These monthly transfers are subordinate to the Wells Fargo payments. A final hearing is set for October 23. A copy of the fourth interim order and the Debtor's budget is available at https://shorturl.at/cVRMC from PacerMonitor.com. About Paulaz Enterprises Inc. Paulaz Enterprises Inc., doing business as Image360 Hollywood FL, provides custom signage, graphics, and display solutions for businesses and organizations in Hollywood, Miami, Fort Lauderdale, and surrounding areas. It offers interior signs, business signage, vehicle wraps, and event displays, coordinating projects from design to installation. Paulaz Enterprises operates as part of a national network, ensuring consistent quality and branding across various applications. Paulaz Enterprises sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-18061) on July 15, 2025. In its petition, the Debtor reported total assets of $303,282 and total liabilities of $1,733,834. Judge Peter D. Russin handles the case. The Debtor is represented by Chad Van Horn, Esq., at Van Horn Law Group, PA. PIVOTAL ANALYTICS: Claims to be Paid from Continued Operations -------------------------------------------------------------- Pivotal Analytics Inc. filed with the U.S. Bankruptcy Court for the Middle District of Florida a Second Amended Plan of Reorganization dated October 2, 2025. The Debtor is a Software-as-a-Service ("SaaS") company that specializes in organizing, processing, and analyzing healthcare related data to deliver actionable insights to its subscribers. The Debtor is a Delaware corporation, founded in 2016, which maintains its principal place of business in Collier County, Florida. Mr. Carl Davis is the Debtor's Chief Executive Officer. Mr. Davis and his wife own 18.89% of the Debtor's outstanding shares of stock as tenants by the entirety; an additional 1.49% of the Debtor's outstanding shares are owned by Mr. Davis and his wife through their IRA accounts; and, an additional 21.66% of the Debtor's outstanding shares are owned by Mr. Davis's relatives. The Financial Projections assumes that at all times prior to the effective date of this plan, the Debtor will: (i) maintain its current subscription and expense pre-payment model; (ii) secure financing from Mr. Davis, or one of his entities; and (iii) sell equity security interests. However, the Debtor is considering a change to its subscription and payment models, which will increase revenue and provide greater financial stability at the cost of reducing cash on hand as of the Effective Date, as reflected in the Liquidation Analysis. To fund its repayment obligations under this Plan, the Debtor will use its Projected Disposable Income ("PDI") set forth in the Financial Projections during the 36-month plan period beginning on the Effective Date of this Plan (such 36-month period hereafter the "Relevant Income Period"). Specifically, the Debtor anticipates the Effective Date will be October 2025. On the Effective Date, the Debtor will begin paying is creditors as provided herein. General Unsecured Creditors will not receive distributions until January 2026. The final Plan payment is expected to be paid in or about September 2028. During the Relevant Income Period, this Plan proposes to pay creditors of the Debtor via cash flow from operations. Class 9 consists of allowed General Unsecured Creditors, including any allowed claims held by the Debtor's "equity security holders" under Bankruptcy Code section 101(17) ("Equity Security Holders"). Beginning on the Effective Date and continuing throughout the life of this Plan, this Class shall receive a pro rata distribution of the Debtor's PDI, collectively totaling $75,000.00. The Debtor projects that distributions will be made quarterly beginning on January 1, 2026. Alternatively, creditors may elect to accelerate their receipt of the distributions they will receive under the Plan. Those creditors that make this election will receive the full amount of their cumulative distribution within the later of (i) 30-days after the Effective Date, or (ii) 30-days after the election gets made. Such lump sum distribution will be paid from the Backstop Escrow. This Class is impaired by this Plan and is entitled to vote on this Plan. Class 10 consists of Equity Security Holders in the Debtor, which are disclosed in the Debtor's List of Equity Security Holders. All Equity Security Holders shall retain their interest in the Debtor. Other than (i) the ordinary course wages paid to Mr. Davis and Mr. Fady Barmada; and (ii) the Plan distributions to any Equity Security Holder with an allowed claim under Class 9 of this Plan, no distributions or dividends shall be made by the Debtor to the Equity Security Holders until the end of the Relevant Income Period. Payments required under this Plan will be funded from revenues generated by the Debtor's continued operations. In addition, In addition, the Debtor will have access to a $75,000.00 escrow (i.e., the Backstop Guaranty) that will be available to fund 100% of the proposed distribution to the Class 9 creditors if the Debtor were unable to fund its obligations to such creditors. A full-text copy of the Second Amended Plan dated October 2, 2025 is available at https://urlcurt.com/u?l=Pau3fM from PacerMonitor.com at no charge. The firm can be reached at: Michael R. Dal Lago, Esq. Christian Garrett Haman, Esq. Jennifer M. Duffy, Esq. Dal Lago Law 999 Vanderbilt Beach Road, Suite 200 Naples, FL 34108 Telephone: (239) 571-6877 Email: jduffy@dallagolaw.com mike@dallagolaw.com chaman@dallagolaw.com About Pivotal Analytics Inc. Pivotal Analytics, Inc. is a data analytics and insights company seeking to redefine how healthcare systems and their partners identify growth opportunities and optimize real estate investment decisions in a value-based care market. It offers a range of services, including market evaluation, competitive analysis, and assessments of consumer demand, provider supply, and productivity. These insights help optimize healthcare assets and services. Pivotal Analytics sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00608) on April 7, 2025. In its petition, the Debtor reported total assets of $760,589 and total liabilities of $5,105,176. Judge Caryl E. Delano handles the case. The Debtor is represented by Michael Dal Lago, Esq., at Dal Lago Law. PREPAID WIRELESS: Hires Telecommunications Law as Expert Witness ---------------------------------------------------------------- Prepaid Wireless Group, LLC seeks approval from the U.S. Bankruptcy Court for the District of Maryland to employ Telecommunications Law Professionals PLLC as an expert witness. The firm will provide regulatory advice, provide expert witness testimony, and prepare an expert report related to the Debtor's dispute with T-Mobile arising out of its mobile virtual network operator agreement with T-Mobile. The firm will be paid at these rates: Carl Northrop, Founding Member $750 Michael Lazarus, Managing Member $700 Dennis Corbett, Member $700 Emily Daniels, Member $600 Jessica Gyllstrom, Member $600 Ashley Brydone-Jack, Associate $450 Kaya DeRose, Associate $400 Taigue Fullerton-Meaney, Law Clerk $350 Kayla Fromm, Law Clerk $300 In addition, the firm will seek reimbursement for its out-of-pocket expenses. Mr. Northrop 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: Carl W. Northrop Telecommunications Law Professionals PLLC 1025 Connecticut Ave NW #1011 Washington, DC 20036 Phone: (202) 789-3120 About Prepaid Wireless Group, LLC Prepaid Wireless Group, LLC is a provider of wireless telecommunications services in Rockville, Md. Prepaid Wireless Group sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 24-18852) on October 21, 2024, with $10 million to $50 million in both assets and liabilities. Paul Greene, chief executive officer, signed the petition. Judge Maria Ellena Chavez-Ruark oversees the case. The Debtor is represented by: Irving Edward Walker, Esq. Cole Schotz P.C. Tel: (410) 230-0660 Email: iwalker@coleschotz.com QUADRA FS: Plan Exclusivity Period Extended to November 12 ---------------------------------------------------------- Judge Stacey L. Meisel of the U.S. Bankruptcy Court for the District of New Jersey extended Quadra FS Inc.'s exclusive periods to file a plan of reorganization and obtain acceptance thereof to November 12, 2025 and January 12, 2026, respectively. In a court filing, the Debtor submits that sufficient "cause" exists to extend its Exclusive Periods for a period of 60 days each. While the Debtor's case is not a large or complex one, the reconciliation, allowance, and treatment of the substantial tax related claims filed against the estate will be perhaps the most critical process in the Debtor's attempt to emerge successfully from Chapter 11. The Debtor claims that affording the company an additional 60 days to incorporate those efforts into a plan, one that the Debtor hopes to obtain widespread creditor acceptance of, will not prejudice any creditors; to the contrary, granting the Debtor a further extension of its Exclusive Periods will help foster a successful reorganization. Accordingly, the Debtor respectfully requests that the Court enter an order extending each of the Exclusive Periods for a period of 60 days. Quadra FS Inc., is represented by: LAW OFFICES OF KENNETH L. BAUM LLC Kenneth L. Baum, Esq. 201 W. Passaic Street, Suite 104 Rochelle Park, New Jersey 07662 (201) 853-3030 (201) 584-0297 Facsimile Email: kbaum@kenbaumdebtsolutions.com About Quadra FS Inc. Quadra FS Inc., doing business as Quadra Furniture Solutions and Quadra Furniture & Spaces, is a luxury staging and furniture rental company offering bespoke design solutions to elevate the value and appeal of properties. With over two decades of expertise, the Company is committed to providing a customized approach to staging that delivers faster sales and higher prices for real estate owners. Quadra FS Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-12162) on March 2, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. Judge Stacey L. Meisel oversees the case. The Debtor tapped the Law Offices of Kenneth L. Baum, LLC as counsel and Kurcias, Jaffe & Company LLP as accountant. RAVEN ACQUISITION: S&P Affirms 'B-' ICR, Outlook Positive --------------------------------------------------------- S&P Global Ratings affirmed its 'B-' issuer credit rating on Raven Acquisition Holdings LLC (d/b/a R1 RCM). S&P said, "The positive outlook reflects our expectation that the company will modestly improve its profitability in 2026 through its completed ramp-up of the Providence contract, cost reductions, and technology and automation initiatives. The outlook also reflects our expectation that Raven will continue to expand organically while completing complementary tuck-in acquisitions over our outlook horizon, which will enable it to increase its S&P Global Ratings-adjusted free operating cash flow (FOCF) to debt above our 3% upgrade threshold in 2026. "First-half 2025 performance was roughly in-line with expectations but FOCF to debt won't sustainably exceed 3% until 2026. We expect the company will strengthen its credit metrics in 2025 due to its acquisition of Acclara and ramp-up of the Providence contract, which will support higher EBITDA margins and an improvement in its S&P Global Ratings-adjusted FOCF generation. However, R1's revenue expansion could be lower than expected in the second half of 2025 due to client facility divestitures and physician attrition, which will reduce its profitability. The company has also maintained an increased capital expenditure (capex) investment cycle in 2025 as it works to develop advanced technology as part of its AI initiatives to support future growth opportunities. R1's increased investment and lower-than-expected revenue expansion could cause its FOCF to debt to remain below 3% in 2025. Even if the company's revenue growth is muted in the second half of 2025, we expect it will benefit from a strong organic revenue expansion and stable or improving profitability over the following 12 months, which will likely cause its FOCF to debt to exceed 3%. "The company's investments in automation will begin to enhance its profitability in 2026. We expect that R1 will expand its EBITDA margin to roughly 17.0%-19.0% in 2025, from 16.2% in 2024, as the negative headwinds from Ascension and Change cyberattacks and higher onboarding costs for its new customers taper off, which will be partially offset by an increase in its capitalized software costs. The company has also increased its investments in intelligent automated RCM solutions, by partnering with Palantir Technologies and the AI lab R37, and plans to launch these offerings at the end of 2025. We believe these automation initiatives, paired with management's continued optimization of its customer-servicing processes, will support an annual 50 basis point (bps)-100 bps expansion in its EBITDA margin beginning in 2026. "We continue to expect R1 RCM will increase its revenue through new customer wins, cross selling, and acquisitions. In the first half of 2025, the company improved its end-to-end service revenue by the mid-teens percent area, mainly due to an increase in its new customer wins and accelerated cross-selling activities. R1 provides these solutions through long-term contracts, under which it assumes full financial responsibility for the customer's revenue cycle operations. Through these contracts, which take three or more years to reach full maturity, the company transitions resources offshore, optimizes vendor selection, and deploys technology and automation while implementing improvements in revenue cycle processes. R1s' margins on its contracts are generally negative in the first year, as it signs on a new health system, but improve thereafter and reach their full potential by the end of the third year. Under these contracts, the company typically increases its existing customers' end-to-end organic revenue by roughly 2%-3% per year. "The company's revenue performance solutions (RPS) business offers modules largely focused on revenue recovery and optimization, which its clients can purchase individually or as a bundle. Though we view these contracts as less sticky than R1's end-to-end RCM contracts, they provide it with some service-line diversity and expand its customer base while providing a higher and more-stable margin profile than its end-to-end contracts, including lower upfront investment requirements. We expect the company will organically increase its RPS revenue by roughly 7%-10% over our forecast horizon." The company's significant reliance on a limited customer base presents concentration risk. R1 has a long-term strategic partnership with Ascension Health Alliance, which is the U.S.' largest not-for-profit health system and its largest customer (accounting for about 35% of its revenue for the 12 months prior to the end of the second quarter of 2025). Although S&P recognizes the company's active efforts to diversify its operations and expand its customer base, its persistent customer concentration and restricted focus continue to pose a risk to its future performance. S&P said, "The positive outlook reflects our expectation that R1 will modestly improve its profitability in 2026 through its completed ramp-up of the Providence contract, cost reductions, and technology and automation initiatives. The outlook also reflects our expectation that the company will continue to expand organically while completing complementary tuck-in acquisitions over our outlook horizon, which will enable it to increase its S&P Global Ratings-adjusted FOCF to debt above our 3% upgrade threshold in 2026. "We could revise our outlook to stable if we expect R1 will generate FOCF to debt of less than 3% on a sustained basis. This could occur if the company's EBITDA growth underperforms our expectations due to difficulties onboarding customers or attaining cost savings from automation. We could also revise the outlook to stable if management becomes more aggressive in its pursuit of debt-financed acquisitions. "We could raise our rating on R1 RCM over the next 12 months if it demonstrates a consistent trend of organic revenue growth, EBITDA margin expansion, and improving FOCF generation such that it sustains S&P Global Ratings-adjusted FOCF to debt of more than 3%." RYVYL INC: CEO Fredi Nisan to Retire Oct. 31, Gets $350K Severance ------------------------------------------------------------------ RYVYL Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that effective October 31, 2025, Fredi Nisan will retire as Chief Executive Officer of the Company. On September 25, 2025, in connection with his reported retirement, the Company and Mr. Nisan entered into a Severance Benefits Offer and General Waiver and Release of Claims agreement. Pursuant to the Severance Agreement, Mr. Nisan will receive a cash payment of $350,000, less applicable withholding amounts, payable over a twelve-month period following the Termination Date, and all issued but unvested equity grants held by Mr. Nisan will vest as of the Termination Date. The Severance Agreement contains customary representations, warranties, and covenants. Additionally, the Company and Mr. Nisan have agreed to release each other from all claims that relate in any way to Mr. Nisan's employment or separation from employment with the Company, except for those types of claims specifically excluded under the terms of the Severance Agreement. Further, each of the Company and Mr. Nisan has covenanted that neither will file or cause to be filed, join, or encourage a lawsuit, between the Company and Mr. Nisan. In addition, on September 25, 2025, the Company and Mr. Nisan entered into an Advisory Services Agreement, effective as of November 1, 2025, and continuing through April 30, 2026. Pursuant to the terms and conditions of the Consulting Agreement, Mr. Nisan will provide services relating to advising the Company on strategic investor partnerships, investment relationships, exploration of M&A opportunities, corporate development, and such other revenue-generating advice and consulting as the Company may reasonably request from time to time. In consideration for his consulting services and in recognition of the services, the Company has agreed to pay Mr. Nisan a cash consulting fee equal to $10,000 per month, payable within five business days after the commencement of each calendar month during the term of the Consulting Agreement. With prior written consent from the Company, the Company shall reimburse Mr. Nisan for preapproved out-of-pocket travel expenses incurred by Mr. Nisan on behalf of Company. The foregoing description of the Severance Agreement is qualified in its entirety by reference to the full text of such agreement, a copy of which is available at https://tinyurl.com/yeywhbxw Mr. Nisan's departure is for personal reasons and is not the result of any disagreement with management or the Company's Board of Directors on any matter relating to the Company's operations, policies or practices. About RYVYL Inc. RYVYL Inc., headquartered in San Diego, California, develops financial technology platforms and tools focused on global payment acceptance and disbursement. The Company's QuickCard product, initially a physical and virtual card processing system for high-risk, cash-based businesses, has transitioned to a fully virtual, app-based platform and is now offered through a licensing model to partners with compliance capabilities. RYVYL operates in the fintech industry, providing cloud-based payment solutions and merchant management services. In its audit report dated March 28, 2025, Simon & Edward, LLP issued a "going concern" qualification citing that the Company transitioned its QuickCard product in North America away from terminal-based to app-based processing on February 2024, which was then terminated on the second quarter of 2024 and the Company then decided to introduce a licensing product for its payments processing platform. This business reorganization has resulted in a significant decline in processing volume and revenue, the recovery of the loss of revenues resulting from this product transition is not expected to occur until late 2025. The auditor said the loss of revenue has jeopardized the Company's ability to continue as a going concern. The Company reported a net loss of $26.83 million in 2024 following a net loss of $53.10 million in 2023. As of June 30, 2025, the Company had $20.60 million in total assets, $27.54 million in total liabilities, and a total stockholders' deficit of $6.94 million. As of Dec. 31, 2024, the Company had an accumulated deficit of $179.4 million. According to RYVYL, there can be no assurances that it will be able to achieve a level of revenues adequate to generate sufficient cash flow from operations or additional financing through private placements, public offerings and/or bank financing necessary to support its working capital requirements. To the extent that funds generated from any private placements, public offerings and/or bank financing are insufficient, it will need to raise additional working capital. There is no guarantee that additional financing will be available, or that any obtained funding can be secured on terms deemed acceptable. RYVYL INC: Director Forest Ralph Resigns for Personal Reasons ------------------------------------------------------------- RYVYL Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that Forest Ralph resigned as director of the Company. Mr. Ralph's departure is for personal reasons and is not the result of any disagreement with management or the Company's Board of Directors on any matter relating to the Company's operations, policies or practices. About RYVYL Inc. RYVYL Inc., headquartered in San Diego, California, develops financial technology platforms and tools focused on global payment acceptance and disbursement. The Company's QuickCard product, initially a physical and virtual card processing system for high-risk, cash-based businesses, has transitioned to a fully virtual, app-based platform and is now offered through a licensing model to partners with compliance capabilities. RYVYL operates in the fintech industry, providing cloud-based payment solutions and merchant management services. In its audit report dated March 28, 2025, Simon & Edward, LLP issued a "going concern" qualification citing that the Company transitioned its QuickCard product in North America away from terminal-based to app-based processing on February 2024, which was then terminated on the second quarter of 2024 and the Company then decided to introduce a licensing product for its payments processing platform. This business reorganization has resulted in a significant decline in processing volume and revenue, the recovery of the loss of revenues resulting from this product transition is not expected to occur until late 2025. The auditor said the loss of revenue has jeopardized the Company's ability to continue as a going concern. The Company reported a net loss of $26.83 million in 2024 following a net loss of $53.10 million in 2023. As of June 30, 2025, the Company had $20.60 million in total assets, $27.54 million in total liabilities, and a total stockholders' deficit of $6.94 million. As of Dec. 31, 2024, the Company had an accumulated deficit of $179.4 million. According to RYVYL, there can be no assurances that it will be able to achieve a level of revenues adequate to generate sufficient cash flow from operations or additional financing through private placements, public offerings and/or bank financing necessary to support its working capital requirements. To the extent that funds generated from any private placements, public offerings and/or bank financing are insufficient, it will need to raise additional working capital. There is no guarantee that additional financing will be available, or that any obtained funding can be secured on terms deemed acceptable. RYVYL INC: Signs Merger Agreement With RTB Digital -------------------------------------------------- RYVYL Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company, RYVYL Merger Sub Inc., a Delaware corporation and wholly owned direct subsidiary of the Company ("Merger Sub"), and RTB Digital, Inc., a Delaware corporation, entered into an Agreement and Plan of Merger. Merger and Merger Consideration: The Merger Agreement provides that, subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into RTB, with RTB surviving the merger as a wholly owned subsidiary of the Company. The Merger Agreement provides that, prior to the effective time of the Merger, the holders of RTB's preferred stock shall either exchange or convert all of their issued and outstanding shares of RTB Preferred Stock for shares of the RTB's common stock, par value $0.001 per share at the applicable conversion ratio (including any accrued or declared but unpaid dividends) as set forth in RTB's certificate of incorporation. At the Effective Time: * each share of Class A Common Stock and Class B Common Stock of RTB issued and outstanding immediately prior to the Effective Time, after giving effect to the RTB Preferred Stock Exchange, other than Excluded Shares and Dissenting Shares (as such terms are defined in the Merger Agreement), will be converted into the right to receive a number of shares of Company Common Stock, equal to an exchange ratio calculated pursuant to the terms set forth in the Merger Agreement, as merger consideration in the Merger; * Company Convertible Note Shares, issued and outstanding immediately prior to the Effective Time (or which would be issued in accordance with the terms of Company Convertible Notes as a result of the Merger or closing of an Additional Company Financing (as such term is defined in the Merger Agreement), will be converted into the right to receive a number of shares of Company Common Stock equal to the Exchange Ratio, as merger consideration in the Merger; * each share of Class C Common Stock of RTB, if any, issued and outstanding immediately prior to the Effective Time will be converted into the right to receive a number of shares of Company Common Stock, equal to the Exchange Ratio, as merger consideration in the Merger; and * each Company Convertible Security shall automatically be converted into an equivalent convertible security of the Company. Subject to the subsequent sentence, each Assumed Convertible Security will be subject to the terms and conditions set forth in RTB's equity plan or other applicable agreement. Each Assumed Convertible Security shall: (i) have the right to acquire a number of shares of Company Common Stock equal to (as rounded down to the nearest whole number) the product of (A) the number of shares of RTB Common Stock which the RTB Convertible Security had the right to acquire immediately prior to the Effective Time, multiplied by (B) the Exchange Ratio; (ii) have an exercise price equal to (as rounded up to the nearest whole cent) the quotient of (A) the applicable exercise price or conversion price of the RTB Convertible Security, divided by (B) the Exchange Ratio; and (iii) be subject to the same vesting schedule as the applicable RTB Convertible Security. Immediately following the Closing of the transactions contemplated by the Merger Agreement, including the Merger, and without taking into account the Merger Consideration Shares issued to the holders of RTB Convertible Note Shares and shares of RTB Class C Common Stock: (i) the aggregate number of shares of Company Common Stock issued to the former stockholders and other equityholders of RTB as Merger Consideration is expected to represent approximately 84.85% of the outstanding equity interests of the combined companies and (ii) Company equityholders as of immediately prior to the Merger are expected to own approximately 15.15% of the outstanding equity interests of the combined companies. Following the Merger, RTB's business will be the primary business of the combined companies, but the Company will continue its current operations, thereafter. The conversion of the RTB Convertible Note Shares and the shares of RTB Class C Common Stock are intended to dilute the equityholders of the Company and the equityholders of RTB prior to RTB's convertible note financing and its Series C common stock financing on a proportionate basis. Amendment to Company Warrants: The Company has agreed to use its best efforts to cause certain institutional investors who participated in the Company's private placement that closed on July 15, 2025, and who hold no less than 97% of the common stock purchase warrants issued in such private placement, to amend their Company Warrants, within thirty days following the date of the Merger Agreement so that the Company is no longer required to pay the holders of such Company Warrants cash in satisfaction of any obligations thereunder. In the event that cash is paid to any of the holders of the Company Warrants to satisfy any obligations of the Company under the Company Warrants, the applicable valuation of the Company under the Merger Agreement will be reduced by $1.00 for every $3.00 of potential liability for such payments upon to a maximum aggregate deduction of $1,000,000. In addition, if institutional investors holding at least 97% of the applicable warrant shares do not agree to amend their Company Warrants, RTB's non-solicitation obligation under the Merger Agreement will be terminated (although the Company's non-solicitation obligation will stay in effect) and it will be permitted to search for another transaction prior to the Closing. Further, such failure to obtain the requisite percentage of amendments to the Company Warrants is also a reason for which RTB may unilaterally terminate the Merger Agreement. Governance of the Combined Companies: Upon the consummation of the Merger, RYVYL Inc. will be renamed "RTB Digital, Inc." The Board of Directors of the combined companies will be reconstituted to consist of seven (7) members, six (6) of whom will be identified by RTB prior to the Closing, and Brett Moyer who will continue to serve on the Board of Directors after the Closing. Representations, Warranties and Covenants: The Merger Agreement contains customary representations, warranties and covenants of the Company and RTB, including covenants relating to the conduct of the business of both the Company and RTB from the date of signing the Merger Agreement through the Closing, obtaining the requisite approval of the stockholders of the Company and RTB, maintaining the listing of the common stock of the Company on the Nasdaq Capital Market and applying for the continued listing of RTB Digital, Inc. after the Closing on Nasdaq. The Merger Agreement provides that the parties will use their respective reasonable best efforts to take all actions reasonably necessary, proper or advisable to consummate and make effective, as promptly as reasonably practicable, the transactions contemplated by the Merger Agreement. Under the terms of the Merger Agreement, the Company and RTB have also agreed to certain restrictions on their ability to solicit alternative transactions from third parties, to provide non-public information to third parties and to engage in discussions with third parties regarding alternative transactions, subject to customary exceptions; provided that RTB's restriction terminates, if the Company fails to receive the required amendments to the Company Warrants on or before the applicable deadline. In connection with the Mergers, the Company will prepare and file with the SEC a registration statement on Form S-4 that will contain a prospectus and a proxy statement, and will seek the approval of the Company's stockholders with respect to certain actions, as specifically provided in the Merger Agreement: The Board of Directors of the Company has agreed to recommend the approval of the Company Stockholder Proposals to the stockholders of the Company and to solicit proxies in support of each such approval at its annual meeting of stockholders or at a special meeting of its stockholders to be held for that purpose. Under the Merger Agreement, the Company has agreed to maintain the indemnification rights (including with respect to advancement of expenses) of the officers and directors of the Company and RTB as in effect immediately prior to the Closing and maintain, for a period of at least three (3) years following the Closing, and to obtain directors' and officers' liability insurance with respect to claims arising from facts or events that occurred at or before the Closing. Conditions to Closing: The Closing is subject to the satisfaction or waiver of customary conditions, including, among other things: (i) receipt of the required approval of the stockholders of the Company and the adoption of the Merger Agreement by the requisite vote of the stockholders of RTB, (ii) the accuracy of the representations and warranties of the parties made in the Merger Agreement, subject to customary materiality qualifiers, (iii) compliance by the parties with their respective covenants and agreements under the Merger Agreement, (iv) the approval for listing on Nasdaq of the Company Common Stock to be issued as the Merger Consideration, (v) the Registration Statement having been declared effective and (vi) the absence of a material adverse effect with respect to the other party. In addition, RTB's obligation to complete the Closing is also subject to further conditions, including: (i) the Company Common Stock not having been delisted from Nasdaq, (ii) the satisfaction of certain other obligations of the Company with respect to third-party consents under existing contracts, (iii) if requested by RTB, the Company shall have consummated the Parent Reverse Split (as provided in the Merger Agreement), and (iv) any outstanding proceeding involving the Company with the SEC or any shareholder derivative lawsuit, shall have been finally settled and the Company shall have taken all required remedial actions associated with such settlement. Termination: The parties may terminate the Merger Agreement by mutual written agreement of the Company and RTB. Either party may terminate the Merger Agreement: (i) if there is a material breach of any of the representations or warranties of the other party set forth in the Merger Agreement or if the other party has failed to perform any covenant or agreement on the part of such party set forth in the Merger Agreement that has not been cured within 20 days or is incapable of being cured, subject to specified limitations, (ii) the failure of the Merger to be consummated by the date that is 12 months after the date of the Merger Agreement, (iii) the imposition of a governmental order permanently enjoining or otherwise prohibiting the Merger or (iv) the failure to obtain the required approval of Parent's stockholders. RTB may also terminate the Merger Agreement as a result of the failure of the Company to receive the requisite amendments to the Company Warrants on or before the applicable deadline. The Company may also terminate the Merger Agreement if RTB has not obtained the approval of its stockholders within 10 business days after the Registration Statement is declared effective by the SEC. The foregoing description of the Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Merger Agreement, which is available at https://tinyurl.com/54wpj793 George Oliva Employment Agreement: As a condition to executing and entering into the Merger Agreement, the Company has agreed to enter into an Employment Agreement with George Oliva, its current Chief Financial Officer, which is to become effective, upon the Closing of the Merger. Under the terms of the Oliva Post-Closing Employment Agreement, Mr. Oliva will serve as the Executive Vice President of Finance and Chief Accounting Officer of the combined companies. He will report directly to the Chief Executive Officer of the combined companies. Mr. Oliva will devote his full working time to his employment with the combined companies. The term of the Oliva Post-Closing Employment Agreement is for two (2) years after the Oliva Post-Closing Employment Agreement Effective Date. Mr. Oliva will be paid a base salary of $375,00 per year, subject to adjustments, as provided. Mr. Oliva is also entitled to a bonus of $225,000, which is payable in installments of $112,500 on the date which is six (6) months after the Oliva Post-Closing Employment Agreement Effective Date and the remaining $112,500 on the date that is twelve (12) months after the Oliva Post-Closing Employment Agreement Effective Date; provided that he continues to be employed on each applicable date, and that he has diligently performed the services assigned to him. He is also entitled to an annual performance bonus as determined by the Chief Executive Officer and the Board. Mr. Oliva will also be awarded options under the equity inventive plan of the combined companies representing not less than 2% of the fully diluted share capital. Such options will not vest until twelve (12) months after Oliva Post-Closing Employment Agreement Effective Date and then in twelve (12) equal monthly amounts thereafter. The Oliva Post-Closing Employment Agreement also contains customary benefits provisions as well as termination and severance provisions. Mr. Oliva's employment may be terminated, at any time, without cause, and upon any such termination he is entitled, in addition to accrued amounts earned, a severance payment equal to the amount of base salary payable to him, until the end of the term, in regular monthly installments. Mr. Oliva is also entitled to certain acceleration of the $225,000 retention bonus and acceleration of his equity awards. Mr. Oliva is also entitled to certain continued group health insurance benefits until the earlier of twelve (12) months after termination or when he receives comparable coverage from a subsequent employer, in each case as long as he makes required employee contributions. The Oliva Post-Closing Employment Agreement also contains customary confidentiality, non-competition, non-solicitation and indemnification provisions. The foregoing description of the Oliva Post-Closing Employment Agreement is qualified in its entirety by reference to the full text of such agreement, a copy of which available at https://tinyurl.com/yuswryfe About RYVYL Inc. RYVYL Inc., headquartered in San Diego, California, develops financial technology platforms and tools focused on global payment acceptance and disbursement. The Company's QuickCard product, initially a physical and virtual card processing system for high-risk, cash-based businesses, has transitioned to a fully virtual, app-based platform and is now offered through a licensing model to partners with compliance capabilities. RYVYL operates in the fintech industry, providing cloud-based payment solutions and merchant management services. In its audit report dated March 28, 2025, Simon & Edward, LLP issued a "going concern" qualification citing that the Company transitioned its QuickCard product in North America away from terminal-based to app-based processing on February 2024, which was then terminated on the second quarter of 2024 and the Company then decided to introduce a licensing product for its payments processing platform. This business reorganization has resulted in a significant decline in processing volume and revenue, the recovery of the loss of revenues resulting from this product transition is not expected to occur until late 2025. The auditor said the loss of revenue has jeopardized the Company's ability to continue as a going concern. The Company reported a net loss of $26.83 million in 2024 following a net loss of $53.10 million in 2023. As of June 30, 2025, the Company had $20.60 million in total assets, $27.54 million in total liabilities, and a total stockholders' deficit of $6.94 million. As of Dec. 31, 2024, the Company had an accumulated deficit of $179.4 million. According to RYVYL, there can be no assurances that it will be able to achieve a level of revenues adequate to generate sufficient cash flow from operations or additional financing through private placements, public offerings and/or bank financing necessary to support its working capital requirements. To the extent that funds generated from any private placements, public offerings and/or bank financing are insufficient, it will need to raise additional working capital. There is no guarantee that additional financing will be available, or that any obtained funding can be secured on terms deemed acceptable. SCILEX HOLDING: Holds 8.03% Equity Stake in Datavault AI -------------------------------------------------------- Scilex Holding Company disclosed in a Schedule 13D filed with the U.S. Securities and Exchange Commission that as of September 25, 2025, it beneficially owns 15,000,000 shares of Common Stock, par value $0.0001 per share, of Datavault AI Inc., representing 8.03% of the 171,842,741 shares outstanding as of September 25, 2025. These shares are held directly by Scilex Holding Company. Scilex Holding Company may be reached through: Henry Ji, Chief Executive Officer and President 960 San Antonio Rd Palo Alto, Calif., 94303 Phone: (650) 516-4310 A full-text copy of Scilex's SEC report is available at: https://tinyurl.com/3cb879wc About Scilex Holding Company Palo Alto, Calif.-based Scilex Holding Company -- www.scilexholding.com -- is an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain and, following the formation of its proposed joint venture with IPMC Company, neurodegenerative and cardiometabolic disease. Scilex targets indications with high unmet needs and large market opportunities with non-opioid therapies for the treatment of patients with acute and chronic pain and is dedicated to advancing and improving patient outcomes. Scilex's commercial products include: (i) ZTlido (lidocaine topical system) 1.8%, a prescription lidocaine topical product approved by the U.S. Food and Drug Administration for the relief of neuropathic pain associated with postherpetic neuralgia, which is a form of post-shingles nerve pain; (ii) ELYXYB, a potential first-line treatment and the only FDA-approved, ready-to-use oral solution for the acute treatment of migraine, with or without aura, in adults; and (iii) Gloperba, the first and only liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. In its report dated March 31, 2025, the Company's auditor, BMP LLP, issued a "going concern" qualification, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2024, Scilex Holding had $92.95 million in total assets, $285.59 million in total liabilities, and a total stockholders' deficit of $192.64 million. SHILO INN NEWPORT: Seeks Chapter 11 Bankruptcy in Washington ------------------------------------------------------------ On October 10, 2025, Shilo Inn Newport LLC voluntarily filed for Chapter 11 bankruptcy in the Western District of Washington. The filing shows the company's assets and liabilities are both estimated between $10 million and $50 million, and the company reported having 1 to 49 creditors. About Shilo Inn Newport LLC Shilo Inn Newport LLC is a limited liability company. Shilo Inn Newport LLCsought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 25-42508) on October 10, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge Mary Jo Heston handles the case. The Debtor is represented by Richard B. Keeton, Esq. of Bush Kornfeld LLP. SIGNATURE YHM: Plan Exclusivity Period Extended to November 8 ------------------------------------------------------------- Judge M. Elaine Hammond of the U.S. Bankruptcy Court for the Northern District of California extended Signature YHM Land LLC's exclusive periods to file a plan of reorganization and obtain acceptance thereof to November 8, 2025 and January 6, 2026, respectively. As shared by Troubled Company Reporter, the Debtor believes the path to reorganization will be achieved through third-party financing that will allow the Debtor to immediately start making payments to Secured Creditors on the allowed portion of their secured claim, as well as a percentage to unsecured creditors. Debtor filed a Second Amended Disclosure Statement and Plan on August 22, 2025, but hopes to work with Secured Creditors to reach mutually agreeable terms and stipulate as to plan treatment. Without the extension of the exclusivity period, the Debtor may be forced to deal with a competing plan during the plan confirmation process. The Debtor explains that it has made substantial progress toward reorganization and has done so in good faith. Since the commencement of the case, the Debtor has taken a number of steps towards reorganization. The Debtor has also already received Court approval for up to $4M of post-petition funding. In conjunction with the plan, the Debtor is also preparing to file a motion to employ a financial consultant and an architect, which will allow permits to be issued for the Properties. The Debtor claims that it has worked with its creditors in a cooperative manner. For any creditors who have requested it, the Debtor has provided and shared information with those creditors. Additionally, the Debtor has continued communicating with counsel for Secured Creditors in the hopes of reaching mutually agreeable payment terms. The Debtor will continue to negotiate with its creditors so that a consensual plan can be reached. Signature YHM Land LLC is represented by: Jeffrey I. Golden, Esq. GOLDEN GOODRICH, LLP 3070 Bristol Street, Suite 640 Costa Mesa, CA 92626 Tel: (714) 966-1000 Fax: (714) 966-1002 Email: jgolden@go2.law About Signature YHM Land LLC Signature YHM Land LLC operates in the real estate sector. Signature YHM Land LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No.: 25-50324) on March 11, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Jeffrey I. Golden, Esq. at GOLDEN GOODRICH LLP. SMART INVESTMENT: Case Summary & Five Unsecured Creditors --------------------------------------------------------- Debtor: Smart Investment Holdings, LLC 851 NE 1st Ave. Unit 2203 Miami, FL 33132 Chapter 11 Petition Date: October 6, 2025 Court: United States Bankruptcy Court Southern District of Florida Case No.: 25-21777 Debtor's Counsel: David W. Langley, Esq. DAVID W. LANGLEY 8551 W. Sunrise Blvd., Suite 303 Plantation, FL 33322 Tel: 954-356-0450 E-mail: dave@flalawyer.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Zohair Sultan as president. A full-text copy of the petition, which includes a list of the Debtor's five unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/S5SR2IQ/SMART_INVESTMENT_HOLDINGS_LLC__flsbke-25-21777__0001.0.pdf?mcid=tGE4TAMA SMILEDIRECTCLUB INC: Execs Drained Company Before Ch. 11, Suit Says ------------------------------------------------------------------- Evan Weinberger of Law360 reports that a court-appointed trustee accused SmileDirectClub Inc.'s leadership of looting the company and concealing safety concerns as it headed toward bankruptcy. In an adversary complaint filed October 10, 2025 in the U.S. Bankruptcy Court for the Southern District of Texas, trustee Allison D. Byman claimed that executives enriched themselves while the business was on the verge of collapse. The filing names founders Jordan Katzman and Alexander Fenkell, and CEO David Katzman—Jordan's father—as having awarded themselves millions in bonuses and stock ahead of the company's September 2023 bankruptcy. Byman said these insider payouts depleted resources that should have gone to creditors, the report states. According to the trustee, the company's leadership also downplayed serious health risks linked to its products, misleading both consumers and investors during SmileDirectClub's final months of operation, the report relays. About SmileDirectClub Inc. SmileDirectClub, Inc. (Nasdaq: SDC) -- http://www.SmileDirectClub.com/-- is an oral care company and creator of the first medtech platform for teeth straightening. Through its cutting-edge telehealth technology and vertically integrated model, SmileDirectClub is revolutionizing the oral care industry. Its mission is to democratize access to a smile each and every person loves by making it affordable and convenient for everyone. SmileDirectClub is headquartered in Nashville, Tennessee. SmileDirectClub and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 23-90786) on Sept. 29, 2023. In the petition signed by its chief financial officer, Troy Crawford, SmileDirectClub disclosed $498,712,000 in assets and $1,051,823,000 in liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis International, LLP as general bankruptcy counsel; Jackson Walker, LLP, as local bankruptcy counsel; Centerview Partners, LLC as financial advisor and investment banker; FTI Consulting, Inc., as restructuring advisor; and Kroll Restructuring Administration, LLC, as notice and claims agent. SPIRIT AIRLINES: Court OKs $475 Million DIP Financing, AerCap Deal ------------------------------------------------------------------ Spirit Aviation Holdings, Inc., parent company of Spirit Airlines, LLC announced on October 10, 2025, that it has received approval from the U.S. Bankruptcy Court for the Southern District of New York for a multi-tranche debtor-in-possession financing facility of up to $475 million from its existing bondholders. In addition, Spirit has received Court approval for the agreement with AerCap Ireland Limited, its largest aircraft lessor. These approvals mark an important milestone in the Company's ongoing Chapter 11 restructuring to position Spirit for the future. The DIP financing will provide Spirit with additional financial flexibility to support normal business operations during its restructuring. Of the total financing, $200 million is immediately available to the Company. The Court's approval of Spirit's agreement with AerCap includes a $150 million payment from AerCap to Spirit, the rejection of 27 aircraft leases and the resolution of all claims and disputes between the parties. The agreement allows the Company to reduce operating costs by hundreds of millions of dollars and provides for the future delivery of 30 aircraft. The Company continues to make progress with other lessors as it pursues its fleet optimization strategy. "We are pleased to have reached another significant milestone in our restructuring, which represents continued progress toward securing a successful future for Spirit," said Dave Davis, President and Chief Executive Officer. "With these approvals in place, we are better equipped to build a stronger airline that delivers unmatched value to American consumers. We thank our stakeholders for their support and the Spirit team for their dedication and resilience during this process." Additional Information The Company maintains a dedicated website about its restructuring process at www.spiritrestructuring.com. Additional information about the Company's Chapter 11 case, including access to Court filings and other documents related to the restructuring process, is available at https://dm.epiq11.com/SpiritAirlines or by calling Spirit's restructuring information line at (855) 952-6606 (U.S. toll free) or +1 (971) 715-2831 (international). Advisors Spirit is supported by Davis Polk & Wardwell LLP as legal counsel, Debevoise & Plimpton LLP as fleet counsel, FTI Consulting as restructuring, fleet and communications advisor and PJT Partners as investment banker. About Spirit Airlines Spirit Airlines, LLC (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. 2nd Attempt Spirit Airlines and its affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 25-11896) on August 29, 2025. In its petition, the Debtors reports estimated assets and liabilities between $1 billion and $10 billion each. Honorable Bankruptcy Judge Sean H. Lane handles the case. The Debtor is represented by Marshall Scott Huebner, Esq. and Darren S. Klein, Esq. at Davis Polk & Wardwell LLP. SPIRIT AIRLINES: KBRA Sees Minimal Impact From Lease Rejections --------------------------------------------------------------- Spirit Airlines Inc. (Spirit), an ultra-low-cost carrier headquartered in Dania Beach, Florida, has filed for Chapter 11 bankruptcy twice in the past year amid ongoing challenges from weak demand, high operating costs, and liquidity constraints. The airline first entered bankruptcy in November 2024 and exited in March 2025, but filed again in August 2025 to pursue a deeper restructuring. Spirit recently reached an agreement with AerCap Holdings N.V. (AerCap) to reject leases on 27 aircraft and, pending court approval, plans to return an additional 87 aircraft as part of its effort to streamline operations and eliminate unprofitable routes. None of the AerCap aircraft are included in asset-backed security (ABS) transactions rated by KBRA; however, two of the 87 pending aircraft are included in two KBRA-rated ABS transactions. There are currently six KBRA-rated aviation lease ABS transactions with exposure to Spirit. The exposures are limited, with no single transaction exceeding 11% of the portfolio value, and no potentially rejected aircraft representing more than 4% of any portfolio. In the event a lease is rejected, ABS cash flows could be temporarily disrupted while the related servicer works to re-lease or sell the affected aircraft. Leases that are affirmed may also be restructured at lower rates, potentially exerting additional pressure on cash flows. The six KBRA-rated aviation lease ABS transactions with exposure to Spirit and the potentially rejected aircraft, based on data from the September 2025 payment date reports, are as follows: For the two transactions that may each include one potentially rejected Spirit aircraft, KBRA's closing assumptions have already incorporated lessee defaults of 60% or more over a four-year industry downturn. As of the September 2025 payment date reports, the two transactions have 0% off-lease aircraft. KBRA will continue to monitor developments and report if needed on potential implications on our rated aviation ABS universe. Recent Publication -- KBRA Comments on Aviation ABS Exposure to Spirit Airlines About KBRA KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions. About Spirit Airlines Spirit Airlines, LLC (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. 2nd Attempt Spirit Airlines and its affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 25-11896) on August 29, 2025. In its petition, the Debtors reports estimated assets and liabilities between $1 billion and $10 billion each. Honorable Bankruptcy Judge Sean H. Lane handles the case. The Debtor is represented by Marshall Scott Huebner, Esq. and Darren S. Klein, Esq. at Davis Polk & Wardwell LLP. STAR DTLA: Section 341(a) Meeting of Creditors on November 12 ------------------------------------------------------------- On October 10, 2025, Star DTLA Inc. voluntarily filed for Chapter 7 bankruptcy protection in the Central District of California, under case number #25-19031. The filing indicates that the company holds assets valued between $0 and $100,000 and liabilities between $100,001 and $1 million, with 1–49 creditors. A meeting of creditors under Section 341(a) to be held on November 12, 2025 at 11:00 AM via Zoom - Dye: Meeting ID 393 921 9950, Passcode 5143532788, Phone 1 213 592 3167. About Star DTLA Inc. Star DTLA Inc. was a Los Angeles-based hospitality and entertainment company specializing in the management and operation of bars, restaurants, and nightlife venues across the downtown area. The company played an active role in shaping DTLA’s vibrant social and dining scene. Star DTLA Inc. sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-19031) on October 10, 2025. In its petition, the Debtor reports estimated assets up to $100,000 and estimated liabilities between $100,001 and $1 million. Honorable Bankruptcy Judge Neil W. Bason handles the case. The Debtor is represented by Young K. Chang, Esq. STARLIGHT US: Emerson at Buda Default Triggers Foreclosure ---------------------------------------------------------- Starlight U.S. Residential Fund on Oct. 10, 2025, announced that it has entered into a reorganization agreement with Starlight Group Property Holdings Inc., an affiliate of the Fund's asset manager, to implement a reorganization transaction. The Reorganization is expected to close before the end of 2025, subject to the satisfaction or waiver of certain closing conditions, including approval of the holders of units of the Fund of the Reorganization, the receipt of certain Fund lender consents, acceptance of the Reorganization from the TSX Venture Exchange, approval for listing of the Class A limited partnership units and, if applicable, Class U limited partnership units, and certain other customary closing conditions. Pursuant to the Reorganization, among other steps: (i) Unitholders will receive limited partnership units of Starlight U.S. Residential Fund (Multi-Family) Investment LP, whose limited partnership agreement will be amended and restated to reflect the terms of the existing declaration of trust of the Fund to the extent possible, subject to necessary modification and certain other differences described in the Agreement, (ii) provided the foreclosure of the Fund's Emerson at Buda property has not been completed, Buda Mezz LLC, the indirect owner of Emerson at Buda, will be distributed to Starlight Group, subject to the consent and other rights of the lender, (iii) the "carried interest" entitlements of Starlight Group and the President of the Fund in the Fund structure will be cancelled, (iv) the legacy entities from the Fund's former single-family residential holding structure which currently does not own any assets and does not generate any revenue will be distributed to Starlight Group, and (v) the Fund will be dissolved and terminated. In addition, the term of SURF LP will expire on November 2029, being three years from the current expiry of the Fund in November 2026. Emerson at Buda is currently valued by the Fund at less than the associated loans. As disclosed previously, Emerson at Buda was unable to satisfy the loan extension conditions in respect of its outstanding loans and, accordingly, is in default in respect of the obligation to repay the associated loans at maturity. As noted above, foreclosure proceedings have been commenced in respect of Emerson at Buda. All Unitholders will receive either Class A limited partnership units of SURF LP denominated in Canadian-dollars or, if the USD Class Vote fails to achieve the requisite majority, holders of trust units of the Fund denominated in U.S. dollars will receive Class U limited partnership units of SURF LP denominated in U.S. dollars. Unitholders will receive Class A or Class U limited partnership units based on the existing entitlements and exchange ratios applicable to each Unitholder's current class of units. The purposes of the Reorganization are, among other things, to simplify the Fund's capital structure, including by reducing the number of classes of units from nine to one (or, depending on the result of the USD Class Vote, two), increasing liquidity for investors by having all of the resulting units listed on a stock exchange, eliminating compliance associated with the Fund being a trust and with the maintenance of the legacy entities within the former single-family residential holding structure, and eliminating potential for Starlight Group and the President of the Fund to receive any "carried interest". It is a condition of closing of the Reorganization that the Class A and, if applicable, Class U limited partnership units of SURF LP be listed and posted for trading on the TSX Venture Exchange. Listing is subject to the approval of the TSX Venture Exchange in accordance with its applicable listing requirements. Required Approvals and Voting Support The Fund will be holding a special meeting of Unitholders to seek, among other things, approval of the Reorganization. The Fund will deliver a management information circular and certain related documents to Unitholders in connection with the Meeting, copies of which will be filed on SEDAR+ at www.sedarplus.ca. It is anticipated that the Meeting will take place in late-November or early December, 2025. Unitholders must approve the Reorganization by at least: (i) 66 2/3rds percent of the votes cast by Unitholders present or represented by proxy, voting as a single class, at the Meeting, and (ii) subject to receipt of exemptive relief from the Canadian Securities Administrators, a majority of the votes attached to the units held by Unitholders present or represented by proxy, voting as a single class, at the Meeting, excluding for this purpose votes cast by Unitholders that are required to be excluded pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions ("MI 61-101"), provided that if such exemptive relief is not obtained, the Unitholders will vote on a class by class basis in respect of (ii). Votes cast by Daniel Drimmer, the senior officers of the Fund, the holder of Class I Units of the Fund and the senior officers and directors of Starlight Group, will be excluded for purposes of the majority of the minority vote described above. In addition, as noted above, holders of U.S. dollar-denominated units of the Fund will have a separate vote, as a class, on whether to receive Class A or Class U limited partnership units of SURF LP. MI 61-101 requires approval of the Reorganization to be received from a majority of the votes attached to the units voted by disinterested Unitholders voting separately on a class-by-class basis at the Meeting. However, the Fund has applied to the CSA for exemptive relief from the requirement that the Fund obtain approval separately for each class of units on the basis that, among other reasons: (i) the Fund's amended and restated declaration of trust provides that Unitholders vote as a single class unless the nature of the business to be transacted at the meeting affects holders of one class of units in a manner materially different from its effect on holders of another class of units, and the Fund's manager and the Fund have determined that, in light of the separate vote for U.S. dollar-denominated units of the Fund, the Reorganization does not affect holders of one class of units in a manner materially different from its effect on holders of another class of units; (ii) since the relative economic entitlements as between classes within the Fund are to be determined in accordance with the formulas established in the amended and restated declaration of trust of the Fund that were set at the time of the Fund's initial public offering when investors selected their preferred class and purchased their units, the economic impact of the Reorganization will be determined pursuant to such formulas and, other than the potential for holders of U.S. dollar-denominated units to receive Class A limited partnership units (which will be subject to the USD Class Vote), the Reorganization will not alter such entitlements or otherwise provide for the payment of cash or assets to Unitholders in a manner that differs from the pre-established entitlements in the amended and restated declaration of trust; (iii) negotiation of the Reorganization was overseen by a special committee of independent trustees of the board of trustees of the Fund; (iv) both the Special Committee and the Board have received the Fairness Opinion; (v) the Board believes that providing a class vote would provide disproportionate power to a potentially small number of Unitholders; and (vi) to the best of the knowledge of the manager of the Fund and the Fund, there is no reason to believe that the Unitholders of any particular class would not approve the Reorganization. There can be no assurance that the requested relief will be granted by the CSA. Board Process and Recommendation The Board constituted the Special Committee to oversee negotiation of the Reorganization for the Fund. In connection with such process, Evans & Evans, Inc. has provided an opinion (the "Fairness Opinion") to the Special Committee and the Board to the effect that, as of the date of such opinion and based upon and subject to the limitations, qualifications, assumptions and other matters set out therein, the Reorganization is fair, from a financial point of view, to the Unitholders (other than interested Unitholders). Based on the Fairness Opinion, certain reasons set out above and as will be described more fulsomely in the management information circular and other considerations, the Special Committee concluded that the Reorganization is in the best interests of the Fund and, accordingly, unanimously recommended that the Board approve the Reorganization and related matters. Based on the Fairness Opinion, the reasons set out above and other considerations, the Board unanimously concluded (with Daniel Drimmer declaring his interest and recusing himself from consideration and voting) that the Reorganization is in the best interests of the Fund and, accordingly, unanimously approved the Reorganization and related matters and unanimously recommends that Unitholders vote IN FAVOUR of the Reorganization and related matters. Transaction Advisors Evans & Evans, Inc. has provided a fairness opinion to the Special Committee and the Board in connection with the Reorganization. Blake, Cassels & Graydon LLP is counsel to the Fund and Wildeboer Dellelce LLP is counsel to the Special Committee. TALEN ENERGY: Fitch Rates Proposed Senior Notes 'BB-' ----------------------------------------------------- Fitch Ratings has assigned Talen Energy Supply, LLC's (Talen) proposed senior notes a rating of 'BB-' with a Recovery Rating of 'RR4'. Management expects to use the proceeds from these offerings to partially fund previously announced acquisitions. The rating reflects Talen's debt funded acquisition and ongoing share repurchases resulting in gross EBITDA leverage increasing to 4.8x in 2025, significantly above its downgrade threshold of 3.5x. However, management remains committed to its 3.5x net leverage target, which Fitch expects to be achieved before YE 2026. Talen has expanded its power purchase agreement (PPA) with Amazon Web Services, which enhances cash flow visibility and margin stability while supporting credit quality. Key Rating Drivers Leveraging Acquisition: Talen plans to finance the transaction with $3.8 billion of cash, excluding approximately $0.3 billion net present value (NPV) of tax benefits generated directly from the deal. The financing will consist of recently issued $1.2 billion secured Term Loan B and $2.7 billion of unsecured debt. The transaction is expected to close in 4Q25 and is subject to regulatory approvals. Fitch anticipates Talen's pro forma EBITDA gross leverage increasing to approximately 4.8x in 2025 and moderating to 3.5x or below in 2026, driven by debt paydown and EBITDA growth. Fitch expects gross leverage to sustain below 3.5x through 2029, based on Fitch's view of normalized capacity and energy margins. Failure to reduce gross leverage to below 3.5x in 2026 will likely result in a downgrade of Talen's IDR. Aggressive Capital Allocation Strategy: The acquisition of Freedom and Guernsey more than doubles Talen's consolidated debt, leading to an immediate increase in leverage. Although Talen has announced a commitment to reduce leverage through a significant paydown of acquisition debt, with a target of net EBITDA leverage below 3.5x, this is contingent on robust FCF under peak capacity and energy price assumptions. This reliance increases the risk of financial underperformance if realized prices are weaker than expected. In addition, Talen's intention to continue share repurchases despite higher leverage will further constrain deleveraging capacity. Amazon Contract Credit Supportive: Talen's cash flow benefits from a long-term, fixed-price PPA with Amazon Web Services, Inc. (AWS, a subsidiary of Amazon.com, Inc.: AA-/Stable), covering the majority of Susquehanna nuclear generation capacity at prices substantially above current market levels. The PPA begins in 2025 in a stepped manner with 120 MW and increased to as much as 1,200 MW by 2029. The agreement includes riders limiting volume risk and is expected to provide stable and predictable cash flows. Fitch views this contract as credit supportive, given it will contribute around 50% of Talen's standalone gross margins once the entire 1.9 GW is contracted by 2032. Improved Scale but Limited Diversity: Talen's generation capacity will increase to about 13GW from 10.3GW following the acquisition. Freedom and Guernsey are efficient, recently built, gas-fired plants providing stable baseload capacity. The strategic PJM location supports seamless integration, offers flexibility to back contracted nuclear generation if operational issues arise and creates opportunities for incremental data center PPAs, driven by recent AI-related investment announcements. However, as these assets are located within the PJM market, where Talen generates over 90% of EBITDA, the transaction does not materially enhance geographic or asset diversity. Commodity Price Sensitivity: The announced acquisition will increase Talen's exposure to energy and capacity price volatility through its merchant generation profile, resulting in potential EBITDA and FCF fluctuations. Freedom and Guernsey's long-term gas netback agreements reduce merchant risk. Talen's capacity margins currently contribute about 30% of total gross margins based on PJM capacity prices, but Fitch expects this to decline to 17%-18% as prices normalize, providing modest cash flow stability. Talen's hedging strategy reduces cash flow volatility, with 60%-80% and 40%-60% of generation hedged in the first and second years, respectively. PJM Remains Primary Market: PJM will continue to account for over 90% of Talen's gross margin. Fitch views PJM favorably, as capacity auctions provide additional revenues for generators. However, volatility has increased, with auction prices rising from $28.92/MW-day for 2024/2025 to $269.92/MW-day for 2025/2026 and $329.17/MW-day for 2026/2027. Fitch expects PJM auction capacity prices to remain in the $270/MW-day for 2027/2028 and normalize at $180/MW-day for 2028/2029 and beyond. Sustained high exposure to a single market increases Talen's vulnerability to regulatory, policy or structural changes within PJM, limiting benefits from geographic diversification. Strong Demand Fundamentals: Talen is positioned to benefit from robust market fundamentals, including above-average demand growth in the PJM region, driven by economic activity, electrification and expanding data center requirements. Fitch expects these factors to support elevated power prices and spark spreads in the near term, benefiting both existing and acquired generation assets. However, the benefits are partially offset by high market concentration and increasing leverage. Stable Nuclear Generation: Susquehanna nuclear generation benefits from the federal production tax credit, providing a $43.75/MWh inflation-indexed price floor through at least 2032 for non-PPA capacity, offering material downside cash flow protection. However, operational risks could materially affect financial performance and credit quality. Peer Analysis In terms of size, asset composition and geographic exposure, Talen is unfavorably positioned compared to Vistra Corp. (Vistra; BB+/Stable) and Calpine Corporation (Calpine; B+/Rating Watch Positive). Vistra is the largest independent power producer in the U.S., with approximately 41GW of generation capacity compared to Calpine's 28GW and Talen's 13GW, following the acquisition of Freedom and Guernsey. Talen is largely concentrated in the PJM, contributing over 90% of consolidated EBITDA. Vistra's portfolio derives more than 60% of its consolidated EBITDA from operations in Texas, while Calpine's fleet is more geographically diversified across PJM, ERCOT and CAISO. Talen and Vistra also benefit from nuclear production tax credits (PTC) provided under the Inflation Reduction Act (IRA). Although Calpine and Vistra have much larger generation portfolios and more diversified fleets, Talen's contracted profile is expected to significantly improve once the PPA signed with AWS ramps up to full potential in 2032. Fitch forecasts Talen's debt-to-EBITDA leverage ratio averaging 3.5x following the close of the acquisition, which is similar to Vistra's expected leverage of 2.9x-3.4x and stronger than Calpine's pre-acquisition leverage of around 4.0x-5.0x. The difference in capital allocation policy, scale, geographic diversity, and the overall competitive advantage of the generation fleet drive the difference between the credit profiles of Vistra and Talen. Key Assumptions - Energy prices in PJM and ISO-NE, in line with current forward curves, averaging around $45/MWh and $55/MWh, respectively; - Average PJM capacity prices are assumed to be approximately $270/MW-day for 2027/2028, based on historical auction results, and are expected to decrease to around $180/MW-day over the forecast period; - Hedging generation as per management's guidance; - Annual combined total generation load of about 55 TWh to 60 TWh; - Total annual capex, including nuclear fuel amortization, averaging around $145 million; - Amazon PPA ramp up schedule as per management guidance; - No dividend payments; - Share repurchases over 2026-2029 averaging $500 million annually; - Assumed interest rate of 7% for incremental debt. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage exceeding 3.5x by YE 2026; - Aggressive capital allocation policy that includes any further potential debt funded acquisitions or share repurchases; - Constrained liquidity position or out-of-the-money hedges; - Weaker-than-expected power prices or capacity auctions in core regions; - Unfavorable changes in regulatory constructs or rules in Talen's markets. Factors that Could, Individually or Collectively, Lead to a Stable Outlook - EBITDA leverage below 3.5x by 2026 and sustaining below thereafter based on normalized power price assumptions. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Given the aggregate debt levels, an upgrade is unlikely. However, Fitch could consider it for the following reasons: - EBITDA leverage is lower than 2.5x on a sustained basis; - Balanced allocation of FCF that maintains balance sheet flexibility and leverage within the stated goal; - Demonstrated ability to hedge effectively and manage liquidity through commodity cycles; - Increased scale, geographic, fuel, and asset diversity, while demonstrating greater cash flow visibility on a sustained basis. Liquidity and Debt Structure Talen has about $122 million of unrestricted cash as of June 30, 2025. In addition, Talen has $700 million of revolver liquidity, out of which $630 million is available as of June 30, 2025. The revolver matures in December 2029. The liquidity is sufficient to cover collateral posting requirements, working capital requirements, and interest rate expenses under Fitch's rating case assumptions. Talen's liquidity also benefits from its standalone letter of credit (LC) facility. Following the acquisition of Freedom and Guernsey, Talen plans to upsize existing RCF and LC facility by $200 million each to support collateral requirements. The company also plans to extend the maturity of the LC facility from December 2026 to December 2027. As of June 30, 2025, Talen had $413 million in LCs outstanding under the LC facility. Talen's LC usage will increase over the next several years as a result of the acquisition and existing contracts. In addition, both assets benefit from first lien hedging, which reduces reliance on cash collateral. There are no significant near-term maturities. However, the $131 million PEDFA bonds are subject to mandatory remarketing in 2027. Issuer Profile Talen Energy Supply, a subsidiary of Talen Energy Corporation, is an independent power producer that currently owns approximately 10.3GW of generation capacity, including 2.2 GW of nuclear power, largely in the PJM. Date of Relevant Committee 17 July 2025 MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor 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 ----------- ------ -------- Talen Energy Supply, LLC senior unsecured LT BB- New Rating RR4 THUNDER SUN: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Thunder Sun Inc. d/b/a Thunder Sun Homes 3817 62nd Drive Lubbock, TX 79413 Business Description: Thunder Sun Inc., doing business as Thunder Sun Homes, is a Lubbock, Texas-based real estate investment and property management company that acquires, renovates, rents, and sells residential properties in Lubbock and surrounding areas. The Company's operations focus on single-family homes and apartment units within this region. Chapter 11 Petition Date: October 7, 2025 Court: United States Bankruptcy Court Northern District of Texas Case No.: 25-50280 Debtor's Counsel: Max R. Tarbox, Esq. TARBOX LAW, P.C. 2301 Broadway Lubbock, TX 79401 Tel: (806) 686-4448 Fax: (806) 368-9785 Email: tami@tarboxlaw.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Austin Randall Hughes as president. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/4CLFSNA/Thunder_Sun_Inc__txnbke-25-50280__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Chase Business Credit Card $33,000 PO Box 6294 Carol Stream, IL 60197-6294 2. City Bank Line of Credit $50,000 5219 City Bank Pkwy Lubbock, TX 79407 3. Civic Financial $27,000 5960 Berkshire Ln, 5th Floor Dallas, TX 75225 4. Divvy - Now Bill Credit Card $100,000 Spend & Expense 6220 America Center Dr Suite 100 San Jose, CA 95002 5. EN OD Capital Merchant $45,000 1202 Avenue U Ste 1115 Cash Advance Brooklyn, NY 11229 6. Everest Funding Merchant $42,500 102 W 38th Street, Cash Advance 6th - Floor New York, NY 10018 7. First Bank & Trust Line of Credit $110,000 9816 Slide Road Lubbock, TX 79424 8. First Bank & Trust Co. Line of Credit $25,000 9816 Slide Road Lubbock, TX 79424 9. GM Business Card Credit Card $29,000 (Goldman Sachs) PO Box 70321 Philadelphia, PA 19176-0321 10. Headway Capital Loan $60,000 175 W Jackson Blvd Suite 1000 Chicago, IL 60604 11. Hunter Kelsey of $36,500 Texas, LLC 7200 N Mopac Expy Suite 120 Austin, TX 78731 12. Lubbock Central Property Taxes $46,342 Appraisal District 2109 Ave Q Lubbock, TX 79411 13. Parkside Funding Merchant $39,349 7901 4th St N Ste Cash Advance 300, Street Petersburg, FL 33702 14. Paul Sutton Business Debt $78,000 3306 39th Street Lubbock, TX 79413 15. Pinnacle Funding Merchant $27,852 1202 Avenue U Ste 1115 Cash Advance Brooklyn, NY 11229 16. Ramp Business Debt $56,000 28 W 23rd Street New York, NY 10010 17. Robin Hughes $29,500 4710 Jefferson Deer Park, TX 77536 18. Square Advance Merchant $39,475 7901 4th St N, Ste Cash Advance 300, Street Petersburg, FL 33702 19. WillFull Properties, LLC $54,201 4008 104th St Lubbock, TX 79423 20. WillFull Properties, LLC $92,877 4008 104th St Lubbock, TX 79423 THUNDER SUN: Oct. 17 Deadline for Panel Questionnaires ------------------------------------------------------ The United States Trustee is soliciting members for committee of unsecured creditors in the bankruptcy case of Thunder Sun Inc. If a party wishes to be considered for membership on any official committee that is appointed, it must complete a questionnaire available at https://tinyurl.com/2hkcr5k8 and return by email it to Asher Bublick -- asher.bublick@usdoj.gov –- at the Office of the United States Trustee so that it is received no later than 4:00 p.m., on Friday, Oct. 17, 2025. If the U.S. Trustee receives sufficient creditor interest in the solicitation, it may schedule a meeting or telephone conference for the purpose of forming a committee. About Thunder Sun Inc. Thunder Sun Inc., dba Thunder Sun Homes, is a residential real estate investment and property management firm based in Lubbock, Texas. Thunder Sun Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-50280) on October 7, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Debtor is represented by Max R. Tarbox, Esq. of Tarbox Law, P.C. TRIMONT ENERGY GIB: Gets Extension to Access Cash Collateral ------------------------------------------------------------ Trimont Energy (GIB), LLC received 20th interim approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to continue to use cash collateral. The court's 20th interim order approved the use of cash collateral for the period from Oct. 25, 2023, through the date which is five business days following a declaration to terminate, reduce or restrict the ability to use cash collateral by the Debtor. Certain entities may possess oil and gas liens under the Louisiana Oil Well Lien Act (LOWLA) on oil and gas assets owned by the Debtor. As protection against any diminution in value of their interests in the pre-bankruptcy collateral, the LOWLA lienholders will be granted valid and perfected security interests in, and liens on, the Debtor's assets. These liens do not apply to any Chapter 5 causes of action and the proceeds, thereof. To the extent the liens granted prove to be inadequate, the LOWLA lienholders will receive superpriority administrative expense claims, subject to a fee carveout. The termination events under the 20th interim order include the filing by the Debtor of documents pertaining to a debtor-in-possession financing that adversely effects the LOWLA lienholders' liens; a default by the Debtor in reporting financial information; dismissal or conversion of the Debtor's Chapter 11 case; the appointment of a Chapter 11 trustee or examiner with enlarged powers; or other responsible person; and the failure by the Debtor to perform its obligations under the 20th interim order. The next hearing is set for November 10. About Trimont Energy (GIB) Trimont Energy (GIB), LLC is a Houston-based company, which operates in the oil and gas extraction industry. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. La. Case No. 23-11869) on Oct. 25, 2023, with $1 million to $10 million in both assets and liabilities. Christopher O. Ryals, chief restructuring officer, signed the petition. Judge Meredith S. Grabill oversees the case. Douglas S. Draper, Esq., at Heller, Draper & Horn, LLC represents the Debtor as legal counsel. TRIMONT ENERGY LIMITED: Gets Extension to Access Cash Collateral ---------------------------------------------------------------- Trimont Energy Limited, Inc. received 20th interim approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to use cash collateral. The court's 20th interim order approved the use of cash collateral for the period from Oct. 25, 2023, through the date which is five business days following a declaration to terminate, reduce or restrict the ability to use cash collateral by the Debtor. Certain entities may possess oil and gas liens under the Louisiana Oil Well Lien Act (LOWLA) on oil and gas assets owned by the Debtor. As adequate protection against any diminution in value of their interests in the pre-bankruptcy collateral, the LOWLA lienholders will be granted valid and perfected security interests in, and liens on, the Debtor's assets. These liens do not apply to any Chapter 5 causes of action and the proceeds, thereof. To the extent the liens granted prove to be inadequate, the LOWLA lienholders will receive superpriority administrative expense claims, subject to a carveout. The termination events under the 20th interim order include the filing by the Debtor of documents pertaining to a debtor-in-possession financing that adversely effects the LOWLA lienholders' liens; a default by the Debtor in reporting financial information; dismissal or conversion of the Debtor's Chapter 11 case; the appointment of a Chapter 11 trustee or examiner with enlarged powers; or other responsible person; and the failure by the Debtor to perform its obligations under the 20th interim order. The next hearing is set for November 10. About Trimont Energy Limited Inc. Trimont Energy Limited, Inc., a company in Houston, Texas, filed its voluntary petition for Chapter 11 protection (Bankr. E.D. La. Case No. 23-11872) on October 25, 2023, listing between $1 million and $50 million in both assets and liabilities. Christopher O. Ryals, chief restructuring officer, signed the petition. Judge Meredith S. Grabill oversees the case. The Debtor is represented by: Douglas S. Draper, Esq. Heller, Draper & Horn L.L.C. Tel: 504-299-3300 Email: ddraper@hellerdraper.com TRIMONT ENERGY NOW: Gets Extension to Access Cash Collateral ------------------------------------------------------------ Trimont Energy (NOW), LLC received another extension from the U.S. Bankruptcy Court for the Eastern District of Louisiana to use cash collateral. The court's 20th interim order approved the use of cash collateral for the period from Oct. 25, 2023, through the date which is five business days following a declaration to terminate, reduce or restrict the ability to use cash collateral by the Debtor. Certain entities may possess oil and gas liens under the Louisiana Oil Well Lien Act (LOWLA) on oil and gas assets owned by the Debtor. As protection against any diminution in value of their interests in the pre-bankruptcy collateral, the LOWLA lienholders will be granted valid and perfected security interests in, and liens on, the Debtor's assets. These liens do not apply to any Chapter 5 causes of action and the proceeds, thereof. To the extent the liens granted prove to be inadequate, the LOWLA lienholders will receive allowed superpriority administrative expense claims, subject to a fee carveout. The termination events under the 20th interim order include the filing by the Debtor of documents pertaining to a debtor-in-possession financing that adversely effects the LOWLA lienholders' liens; a default by the Debtor in reporting financial information; dismissal or conversion of the Debtor's Chapter 11 case; the appointment of a Chapter 11 trustee or examiner with enlarged powers; or other responsible person; and the failure by the Debtor to perform its obligations under the 20th interim order. The next hearing is set for November 10. About Trimont Energy (Now) Trimont Energy (NOW) LLC, a company in Houston, Texas, filed its voluntary petition for Chapter 11 protection (Bankr. E.D. La. Case No. 23-11868) on October 25, 2023, listing $1 million to $10 million in both assets and liabilities. Christopher O. Ryals, chief restructuring officer, signed the petition. Judge Meredith S. Grabill oversees the case. The Debtor tapped Heller, Draper, & Horn, LLC as legal counsel; Chaffe & Associates, Inc. as financial advisor; and Christopher O. Ryals of RCO Capital, LLC as chief operating officer. VENUS CONCEPT: Inks $11.5M Debt-for-Equity Exchange With Madryn --------------------------------------------------------------- Venus Concept Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company entered into an Exchange Agreement with Madryn Health Partners, LP and Madryn Health Partners (Cayman Master), LP, pursuant to which the Holders agreed to exchange: (i) that certain Secured Subordinated Convertible Note issued by the Company in favor of Madryn, dated June 30, 2025, in the original principal amount of $4,105,696.60, for 201,774 shares of the Company's convertible preferred stock, par value $0.0001 per share, designated as "Series Y Convertible Preferred Stock", to be issued by the Company to Madryn; and (ii) that certain Secured Subordinated Convertible Note issued by the Company in favor of Madryn Cayman, dated June 30, 2025, in the original principal amount of $6,990,782.23, for 343,561 shares of Series Y Preferred Stock to be issued by the Company to Madryn Cayman. The Exchange closed on September 30, 2025. The Preferred Shares were priced at $21.05 per share, being equal to the product of: (i) the average closing price (as reflected on Nasdaq.com) of the Company's common stock, par value $0.0001 per share, for the five trading days immediately preceding the date of the Exchange Agreement, multiplied by (ii) 9.0909 (being the number of shares of Common Stock into which each Preferred Share converts). At the next annual or special meeting of shareholders of the Company, or such later date as agreed by the parties, the Company is required to include in the proxy materials for such meeting a proposal for the purpose of eliminating any limitations on the convertibility of the Series Y Preferred Stock under the rules and regulations of the Nasdaq Stock Market LLC. The Exchange Agreement contains customary representations, warranties and agreements by the Company, indemnification obligations of the Company, including for liabilities under the Securities Act of 1933, as amended, and other obligations of the parties. The representations, warranties, and covenants contained in the Exchange Agreement were made only for purposes of such agreement and are made as of specific dates; are solely for the benefit of the parties (except as specifically set forth therein); may be subject to qualifications and limitations agreed upon by the parties in connection with negotiating the terms of the Exchange Agreement, including being qualified by confidential disclosures made for the purpose of allocating contractual risk between the parties, instead of establishing matters as facts; and may be subject to standards of materiality and knowledge applicable to the contracting parties that differ from those applicable to the investors generally. Investors should not rely on the representations, warranties, and covenants or any description thereof as characterizations of the actual state of facts or condition of the Company. The Preferred Shares, as well as the shares of Common Stock issuable upon conversion thereof, have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an exemption therefrom. To consummate the Exchange, the Company relied the registration exemption provided by Section 3(a)(9) of the Securities Act. To effectuate conversions of the shares of Series Y Preferred Stock, the Company will rely on the private placement provided by Section 4(a)(2) of the Securities Act and by Rule 506 of Regulation D, promulgated by the U.S. Securities and Exchange Commission. The foregoing description of the Exchange Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Exchange Agreement, a copy of which is available at https://tinyurl.com/5n7v4p2b Fourth Amended and Restated Registration Rights Agreement: On September 30, 2025, as required by the Exchange Agreement, the Company and the Holders entered into a fourth amendment and restatement of the Amended and Restated Resale Registration Rights Agreement, as previously entered into among the parties on September 26, 2024. Under the Fourth Amended and Restated Registration Rights Agreement, the Company is required, among other things, to file a shelf resale registration statement with respect to the shares of Common Stock issuable upon conversion of the shares of Series Y Preferred Stock with the SEC within 60 days following the conversion of all of the issued and outstanding Series Y Preferred Stock into Common Stock. The Company also granted customary demand and piggyback registration right to the Holders. The Fourth Amended and Restated Registration Rights Agreement contains other terms and conditions customary for a transaction of this type. The foregoing description of the Fourth Amended and Restated Registration Rights Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Fourth Amended and Restated Registration Rights Agreement, a copy of which is available at https://tinyurl.com/4waakmyf MSLP Consent Agreement: On September 30, 2025, the Company, Venus Concept USA, Inc., a wholly owned subsidiary of the Company, Venus Concept Canada Corp., a wholly owned Canadian subsidiary of the Company, and Venus Concept Ltd., a wholly owned Israeli subsidiary of the Company, entered into a Consent Agreement with the Holders. The MSLP Consent Agreement granted relief under the Loan and Security Agreement (Main Street Priority Loan), dated December 8, 2020, among the Holders, as lenders, and Venus USA, as borrower, such that: (i) certain minimum liquidity requirements under the MSLP Loan Agreement are waived through October 31, 2025, and (ii) Venus USA is permitted to apply the October 8, 2025 cash interest payment due under each Note (as defined in the MSLP Consent Agreement) to the respective outstanding principal balance of each Note. The foregoing description of the MSLP Consent Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the MSLP Consent Agreement, a copy of which is available at https://tinyurl.com/p8s63uu2 Twentieth Bridge Loan Amendment: On September 30, 2025, the Loan Parties entered into a Twentieth Bridge Loan Amendment Agreement with the Holders. The Twentieth Bridge Loan Amendment amended that certain Loan and Security Agreement, dated as of April 23, 2024, among Venus USA, as borrower; the Company, Venus Canada and Venus Israel, as guarantors; and the Holders, as lenders (as amended from time to time, the "Bridge Loan"), to extend the maturity date of the Bridge Loan from September 30, 2025 to October 31, 2025 and increase the delayed draw commitment from $21,000,000 to $26,000,000. The foregoing description of the Twentieth Bridge Loan Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Twentieth Bridge Loan Amendment, a copy of which is available at https://tinyurl.com/35j4uss7 Amendment to Certificate of Designations of Series Y Preferred Stock On September 30, 2025, as required by the Exchange Agreement, the Company filed a Certificate of Amendment with the Secretary of State of the State of Delaware, thereby amending the Certificate of Designations with respect to the Series Y Preferred Stock, as previously filed with the Secretary of State of the State of Delaware on May 24, 2024 and as previously amended on September 26, 2024, March 31, 2025, June 30, 2025 and August 6, 2025 (the "Series Y COD"). The Series Y Amendment amended the Series Y COD to, among other things, increase the authorized shares of Series Y Preferred Stock from 1,500,000 to 2,100,000. The Series Y Amendment became effective with the Secretary of State of the State of Delaware upon filing. About Venus Concept Toronto, Ontario-based Venus Concept Inc. is an innovative global medical technology company that develops, commercializes, and delivers minimally invasive and non-invasive medical aesthetic and hair restoration technologies and related services. The Company's systems have been designed on cost-effective, proprietary, and flexible platforms that enable the Company to expand beyond the aesthetic industry's traditional markets of dermatology and plastic surgery, and into non-traditional markets, including family medicine and general practitioners and aesthetic medical spas. Mississauga, Canada-based MNP LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has reported recurring net losses and negative cash flows from operations, which raises substantial doubt about its ability to continue as a going concern. As of June 30, 2025, the Company had $63.09 million in total assets, $60.31 million in total liabilities, and $2.33 million in total stockholders' equity. VENUS CONCEPT: Madryn Entities Hold Majority Stake -------------------------------------------------- Madryn Asset Management, LP, Madryn Health Partners, LP, Madryn Health Partners (Cayman Master), LP, and Madryn Health Advisors, LP (collectively, the "Reporting Persons"), disclosed in a Schedule 13D (Amendment No. 10) filed with the U.S. Securities and Exchange Commission that as of September 30, 2025, they beneficially own shares of Venus Concept Inc. common stock, par value $0.0001 per share, as follows: * Madryn Asset Management, LP: 10,827,497 shares of Common Stock, representing 85.4% of the outstanding Common Stock. These shares are held indirectly through its role as investment manager for the Funds and represent shared voting and dispositive power. * Madryn Health Partners, LP: 4,005,664 shares of Common Stock, representing 31.6% of the outstanding Common Stock. Shares are held directly by the Fund with shared voting and dispositive power. * Madryn Health Partners (Cayman Master), LP: 6,821,833 shares of Common Stock, representing 53.8% of the outstanding Common Stock, held directly with shared voting and dispositive power. * Madryn Health Advisors, LP: 10,827,497 shares of Common Stock, representing 85.4% of the outstanding Common Stock, held indirectly as general partner of the Funds. The aggregate beneficial ownership reflects the conversion rights of Series X and Series Y Preferred Stock and certain warrants, with shares issuable upon conversion currently subject to limitations imposed by Nasdaq Capital Market rules. The total Common Stock considered in percentage calculations includes 1,859,123 shares reported as outstanding as of August 8, 2025, plus shares issuable upon conversion of Series Y Preferred Stock, Series X Preferred Stock, and warrants held by the Reporting Persons. The Reporting Persons acquired the securities primarily for investment purposes and in connection with a series of exchange agreements over the past several years, including: * December 2020: Acquisition of 2020 Convertible Notes and warrants through the 2020 Exchange Agreement. * October 2023: Exchange of 2020 Convertible Notes for 2023 Convertible Notes and Series X Preferred Stock under the 2023 Exchange Agreement. * May 2024 – September 2025: Series of exchange agreements converting senior indebtedness and previous convertible notes into Series Y Preferred Stock (May 2024, September 2024, March 2025, June 2025, and September 2025 Exchange Agreements). Each share of Series Y Preferred Stock is convertible into 9.0909 shares of Common Stock and carries a senior liquidation preference equal to twice the issuance price. Series X Preferred Stock is convertible into 0.91 shares of Common Stock and accrues a 12.5% annual dividend payable in cash or additional shares. The September 30, 2025, exchange transaction resulted in the issuance of 545,335 shares of Series Y Preferred Stock to the Reporting Persons. The Reporting Persons may be reached through: Matthew Girandola, Chief Compliance Officer 330 Madison Avenue, Floor 33 New York, N.Y. 10017 Phone: (646) 560-5490 A full-text copy of the Schedule 13D (Amendment No. 10) SEC report for the Reporting Persons is available at: About Venus Concept Toronto, Ontario-based Venus Concept Inc. is an innovative global medical technology company that develops, commercializes, and delivers minimally invasive and non-invasive medical aesthetic and hair restoration technologies and related services. The Company's systems have been designed on cost-effective, proprietary, and flexible platforms that enable the Company to expand beyond the aesthetic industry's traditional markets of dermatology and plastic surgery, and into non-traditional markets, including family medicine and general practitioners and aesthetic medical spas. Mississauga, Canada-based MNP LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated March 31, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has reported recurring net losses and negative cash flows from operations, which raises substantial doubt about its ability to continue as a going concern. As of June 30, 2025, the Company had $63.09 million in total assets, $60.31 million in total liabilities, and $2.33 million in total stockholders' equity. VISION2SYSTEMS LLC: Amends SBA Secured Claim Pay ------------------------------------------------ Vision2Systems LLC submitted an Amended Disclosure Statement in support of Amended Plan of Liquidation dated October 2, 2025. The primary purpose of the Plan is to facilitate the resolution and treatment of outstanding Claims, Liens, and Equity Interests. The Plan contemplates payment of the Principals Settlement Amount to fund priority, administrative, and secured claims. Insider Claims and Equity Interests will receive no distribution under the Plan. Class 2 consists of the Secured Claim of the SBA. Class 2 shall consist of the Allowed Secured Claim of the SBA, which shall be Allowed in the amount of zero dollars. The SBA shall receive nothing on account of its Allowed Class 2 Claim. Notwithstanding the foregoing, nothing in this section shall diminish or change the effect of Section 506 of the Bankruptcy Code, and as such, any Allowed Claim of the SBA not classified in this Class 2, shall be classified as a Class 3 General Unsecured Claim. The Amended Disclosure Statement does not alter the proposed treatment for unsecured creditors and the equity holder: * Class 3 consists of Allowed Unsecured Claims Against the Debtor not placed in any other Class. Except to the extent that a holder of an Allowed Class 3 Claim and the Debtor or Post-Confirmation Debtor agree to different treatment, each holder of an Allowed Class 3 Claim shall receive, in full and final satisfaction of such claim, (i) its Pro Rata share of the Initial GUC Distribution Amount and, (ii) to the extent such holder of an Allowed Class 3 Claim does not opt out of the releases granted pursuant to Section 11.7 of the Plan, its Pro Rata share of the GUC Settlement Distribution Amount. The allowed unsecured claims total $6.1 Million. Class 3 is impaired. The estimated recovery for General Unsecured Claims is "unknown", according to the Disclosure Statement. * Class 5 consists of the Equity Interests in Vision2Systems. The Equity Interests in Vision2Systems shall be cancelled as of the Effective Date. On or immediately after the Effective Date, the Post-Confirmation Debtor shall distribute the FBO Funds to the designated church that corresponds to each respective FBO account label as previously held. Pursuant to Bankruptcy Rule 9019, the Plan does, and shall, constitute a compromise, settlement and release of all potential claims against Balwin and Tierney. Entry of the Confirmation Order shall constitute approval of the Principals Settlement set forth below, which shall become effective upon the Effective Date. On or after the Effective Date, the PostConfirmation Debtor will take such actions as may be necessary or appropriate to wind down, dissolve, or otherwise terminate the corporate existence of the Post-Confirmation Debtor. After the Effective Date, Paul Baldwin shall continue to serve as an authorized representative of the Post-Confirmation Debtor to carry-out the wind down of the Post Confirmation Debtor. A full-text copy of the Amended Disclosure Statement dated October 2, 2025 is available at https://urlcurt.com/u?l=1X4yr0 from PacerMonitor.com at no charge. Vision2Systems LLC is represented by: Jason P. Kathman, Esq. Camber M. Jones, Esq. Alex S. Anderson, Esq. Spencer Fane LLP 5700 Granite Parkway, Suite 650 Plano, TX 75024 Tel: (972) 324-0300 Fax: (972) 324-0301 Email: jkathman@spencerfane.com Email: cjones@spencerfane.com Email: alanderson@spencerfane.com About Vision2systems LLC Vision2Systems LLC founded in 2012, is a software company based in Dallas, Texas, that provides online giving and membership management platforms tailored for churches. The platform offers solutions for accounting, donations, event planning, and overall church management. Vision2Systems LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40583) on Feb. 19, 2025. In its petition, the Debtor estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Jason P. Kathman, Esq., at SPENCER FANE. WAMALA GENERAL: Unsecured Creditors to Get Nothing in Plan ---------------------------------------------------------- Wamala General Properties LLC filed with the U.S. Bankruptcy Court for the District of Nevada a Plan of Reorganization for Small Business dated October 2, 2025. The Debtor is a one-member member-managed limited liability company formed under the laws of the state of Nevada. The Debtor is in the business of formal clothing sales and rental. There are two locations, each within a prominent shopping mall in Las Vegas, Nevada, the Las Vegas South Outlet Mall and the Galleria Mall. Continued operations at these locations are essential for the Debtor and, as a major goal of the reorganization, good relationships with these landlords must be strengthened. The final Plan payment is expected to be paid on or about December 1, 2030. This Plan of Reorganization proposes to pay creditors of the Debtor from rental income. Non-priority general unsecured creditors holding allowed claims will likely receive no distributions. This Plan also provides for the payment of four administrative claims any priority claims not in Class 1, of which, currently, there exists the priority claim of the State of Nevada Department of Taxation. Class 3 consists of general unsecured claimants. Allowed claimants shall receive no distributions as liquidation and cash flow calculations provide no monies available. This Class is impaired. A full-text copy of the Plan of Reorganization dated October 2, 2025 is available at https://urlcurt.com/u?l=xPuYRP from PacerMonitor.com at no charge. Counsel to the Debtor: David A. Riggi, Esq. Riggi Law Firm 5550 Painted Mirage Rd. Suite 320 Las Vegas, NV 89149 Tel: (702) 463-7777 Fax: (888) 306-7157 Email: RiggiLaw@gmail.com About Wamala General Properties LLC Wamala General Properties LLC is in the business of formal clothing sales and rental. The Debtor sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Nevada Case No. 25-13881) on July 4, 2025, listing up to $50,000 in assets and $100,001 to $500,000 in liabilities. The Debtors are represented by David A. Riggi, Esq., at Riggi Law Firm. WANDERLY LLC: Updates Unsecured Claims Pay Details; Amends Plan --------------------------------------------------------------- Wanderly, LLC submitted a Second Amended Disclosure Statement describing Plan of Liquidation dated October 2, 2025. The funds used to pay the creditors, including the secured claim of MBP, are coming from the (i) the Registry Funds, (ii) the Escrowed Funds and (iii) $1,000,000.00 of the Sales Proceeds per the Settlement Agreement. The $1,000,000.00 has been transmitted to MBP. The remaining Sales Proceeds are held in the trust account of Kelley, Kaplan & Eller PLLC. The remaining claims shall be satisfied as follows: * All administrative claims shall be paid from the Sales Proceeds, subject to Applications for Compensation filed by the administrative claimants and approved by this Court. * Any outstanding fees due to the Office of the United States Trustee shall also be paid from the Sales Proceeds. * All Debtor wind down expenses shall be paid from the Sales Proceeds, subject to Order of this Court. * Subject to any objections sustained by the Court, all Priority Unsecured Claims, if any, shall be paid in full as set forth in each Creditor???s Proof of Claim, ("Allowed Priority Claims"). * Finally, subject to any objections sustained by the Court, all general unsecured creditors ("Allowed General Unsecured Claims") shall receive a pro rata distribution after payment of all other claims. The prorata distribution to the General Unsecured Claims shall be determined any claims objections that may be filed are resolved, the fees due to the U.S. Trustee and administrative claims are determined, the wind down expenses are finalized and it is determined whether, if any priority unsecured claims need to be paid. Class One consists of the Claim of MyBasePay. MyBasePay filed Proof of Claim Nos. 11 and 12 in the Bankruptcy Case, under which MyBasePay alleges inter alia claims against the Debtor totaling in excess of $6,700,000.00. The Debtor objected to the amount of this claim as it maintained less is owed to MyBasePay. The Debtor and MBP entered into a settlement agreement whereby the Debtor agreed to pay MBP the amount of $3,252,864.00 (the "Settlement Amount"). $1,000.000.00 of the Settlement amount was already paid to MBP from the Sales Proceeds. The remaining amount shall be paid from the Registry Funds and the Escrowed Funds. Class Two consists of General Unsecured Creditors. The General Unsecured claims include all other allowed claims of Unsecured Creditors of the Debtor, subject to any Objections that are filed and sustained by the Court. The general unsecured claims prior to the filing of any objections total the amount of $$2,782,683.90. These claims shall be paid a lump sum distribution on a prorata basis on the Effective Date after payment of administrative expenses and wind down expenses. These claims are impaired. The Debtor has been liquidated and there shall be no continuing operations after the sale. A full-text copy of the Second Disclosure Statement dated October 2, 2025 is available at https://urlcurt.com/u?l=18JGN5 from PacerMonitor.com at no charge. Counsel to the Debtor: Craig I. Kelley, Esq. Kelley Kaplan & Eller, PLLC 1665 Palm Beach Lakes Blvd., Suite 1000 West Palm Beach, FL 33401 Telephone: (561) 491-1200 Facsimile: (561) 684-3773 Email: bankruptcy@kelleylawoffice.com About Wanderly LLC Wanderly, LLC is a technology marketplace platform created for traveling healthcare professionals and healthcare staffing companies. Wanderly filed Chapter 11 petition (Bankr. S.D. Fla. Case No. 24-23477) on Dec. 26, 2024, listing between $100,000 and $500,000 in assets and between $1 million and $10 million in liabilities. Linda Leali, Esq., serves as Subchapter V trustee. Judge Erik P. Kimball handles the case. The Debtor is represented by Craig I. Kelley, Esq., at Kelley Kaplan & Eller, PLLC. WAYPOINT ROOFING: Court Extends Cash Collateral Access to Nov. 13 ----------------------------------------------------------------- Waypoint Roofing & Construction, Inc. received another extension from the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, to use cash collateral. The court extended the Debtor's authority to use cash collateral through November 13 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 secured creditor, the U.S. Small Business Administration. As protection, secured creditors including Samson MCA, LLC, Fox Funding Group, LLC, and QFS Capital were granted post-petition replacement liens, with the same validity, priority, and extent as their pre-bankruptcy liens. As further protection, the Debtor was ordered to keep its property insured as required under its agreements with secured creditors. The next hearing is scheduled for November 13. About Waypoint Roofing & Construction Waypoint Roofing & Construction Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-00874) on February 14, 2025. Judge Tiffany P. Geyer presides over the case. Michael Faro, Esq., at Faro & Crowder, PA represents the Debtor as legal counsel. WELCH & WELCH: Seeks to Extend Plan Filing Deadline to Nov. 10 -------------------------------------------------------------- Welch & Welch Planting Co., LLC asked the U.S. Bankruptcy Court for the Western District of Tennessee to extend its period to file a plan and disclosure statement to November 10, 2025. The Debtor explains that it is waiting on its 2025 crops to be harvested to determine profitability before filing a plan and disclosure statement. The Debtor seeks an additional 30 days within which to file a plan and disclosure statement up to and including November 10, 2025. Welch & Welch Planting Co. LLC is represented by: Tom Strawn, Esq. The Law Office of Tom Strawn 115 S. Mill Ave. P.O. Box 908 Dyersburg, TN 38025 Tel: (731) 285-3375 Email: tstrawn42@bellsouth.net About Welch & Welch Planting Co., LLC Welch & Welch Planting Co. LLC is an agricultural company specializing in crop production, utilizing advanced machinery for planting, soil preparation, irrigation, and harvesting. Welch & Welch Planting Co. LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No. 25-10356 on March 13, 2025. In its petition, the Debtor reports total assets of $1,323,500 and total liabilities of $1,055,264. The Debtor is represented by Tom Strawn, Esq., at The Law Office of Tom Strawn. WHITNEY OIL & GAS: Gets Extension to Access Cash Collateral ----------------------------------------------------------- Whitney Oil & Gas, LLC received another extension from the U.S. Bankruptcy Court for the Eastern District of Louisiana to use cash collateral. The court's 20th interim order authorized the use of cash collateral for the period from Oct. 26, 2023, through the date which is five business days following a declaration to terminate, reduce or restrict the ability to use cash collateral by the Debtor. Certain entities may possess oil and gas liens under the Louisiana Oil Well Lien Act (LOWLA) on oil and gas assets owned by the Debtor. As protection for any diminution in value of their interests in the pre-bankruptcy collateral, the LOWLA lienholders will be granted valid and perfected security interests in, and liens on, the Debtor's assets, subject to a fee carveout. These liens do not apply to any Chapter 5 causes of action and the proceeds, thereof. To the extent the liens granted prove to be inadequate, the LOWLA lienholders will receive a superpriority administrative expense claims, junior to the fee carveout. The termination events under the 20th interim order include the filing by the Debtor of documents pertaining to a debtor-in-possession financing that adversely effects the LOWLA lienholders' liens; a default by the Debtor in reporting financial information; dismissal or conversion of the Debtor's Chapter 11 case; the appointment of a Chapter 11 trustee or examiner with enlarged powers; or other responsible person; and the failure by the Debtor to perform its obligations under the 20th interim order. The next hearing is set for November 10. About Whitney Oil & Gas Whitney Oil & Gas, LLC operates in the oil and gas extraction industry. The company is based in Houston, Texas. Whitney Oil & Gas filed Chapter 11 petition (Bankr. E.D. La. Case No. 23-11873) on Oct. 26, 2023, with $1 million to $10 million in both assets and liabilities. Judge Meredith S. Grabill oversees the case. Douglas S. Draper, Esq., at Heller, Draper & Horn, LLC is the Debtor's legal counsel. WILLIAMS PROPERTIES: Gets OK to Hire Brown Law Group as Counsel --------------------------------------------------------------- Williams Properties 15206, LLC received approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire The Brown Law Group LLC as counsel. The firm will render these services: a. advise the Debtor with respect to his powers and duties a debtor-in-possession in the continued management of his property; b. advise and consult on the conduct of the Chapter 11 Case, Sub Chapter V, including his responsibilities in complying with reporting requirements and rules of this Court; c. take all necessary action to protect and preserve the Debtor's estate, including prosecuting actions on the Debtor's behalf and representing the Debtor's interests in negotiating, drafting and pursuing all documentation necessary in the Chapter 11 Sub Chapter V Case; d. prepare all motions, applications, answers, orders, reports and all other legal papers necessary for the approval for a chapter 11 plan and documents related thereto; e. take necessary action to negotiate, prepare and obtain approval for a chapter 11 plan and all documents related; f. appear before the Court and protect the interest of the Debtor's estate before the court; g. provide non-bankruptcy services to the Debtor to the extent requested by the Debtor; and h. perform all other necessary legal services. The firm's current hourly rates are: Vincent T. Brown, Partner $400 Paralegal $175 The firm received a retainer in the amount of $6,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Vincent Brown, Esq., a partner at Brown Law Group, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Vincent T. Brown, Esq. The Brown Law Group, LLC 847 NW 119th St Ste 202 Miami, FL 33168-2341 Office: (305) 688-7500 Fax: (305) 688-7501 Email: vtblaw@bellsouth.net About Williams Properties 15206, LLC Williams Properties 15206, LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-20676) on September 14, 2025, listing under $1 million in both assets and liabilities. The petition was signed by Reginald Williams, managing member. Judge Robert A Mark presides over the case. Vincent T. Brown, Esq. at The Brown Law Group LLC represents the Debtor as counsel. XCEL BRANDS: Settles With IM Topco, Gets Capital Appreciation Right ------------------------------------------------------------------- Xcel Brands, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company, IM Topco, LLC, IMWHP, LLC and IMWHP2 LLC entered into a Settlement Agreement pursuant to which the Company entered into a Membership Interest Transfer Agreement with IMWHP and IMWHP2, Xcel-CT MFG, LLC, a subsidiary of the Company, was released from any further liability under certain provisions of the License Termination Agreement between IM Topco and Xcel-CT. In addition, pursuant to the Settlement Agreement, the Company received a capital appreciation right to receive 15% of the net consideration received by IM Topco, IMWHP, IMWHP2 and any other equity holders of IM Topco in excess of $46 million in connection with a capital transaction involving IM Topco which occurs on or before September 1, 2032. Pursuant to the Transfer Agreement Xcel agreed to transfer to IM2 all of its equity interests in IM Topco, which represented equity interests equal to 17.5% of the outstanding equity interests of IM Topco, on October 1, 2025. About Xcel Brands New York, N.Y.-based Xcel Brands, Inc. is a media and consumer products company engaged in the design, licensing, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as social commerce. New York, N.Y.-based Marcum LLP, the Company's auditor since 2021, issued a "going concern" qualification in its report dated May 27, 2025, attached to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of December 31, 2024, the Company had $53.8 million in total assets, $25.4 million in total liabilities, and a total stockholders' equity of $28.4 million. In its Annual Report on Form 10-K for the fiscal year ended June 30, 2025, the Company reported net losses of $3.45 million for the year ended June 30, 2025, compared to a net income of $980,951 for the year ended June 30, 2024. Revenue was $44,515 for the year ended June 30, 2025. Total revenue from continuing operations was $5,950,692 for the year ended June 30, 2024. Irvine, California-based YCM CPA INC., the Company's auditor since 2022, issued a "going concern" qualification in its report dated September 30, 2025, attached to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2025, citing that the Company had an accumulated deficit of $5.75 million as of June 30, 2025, and negative cash flows from operations. The Company does not have sustained and stable income, and there is also significant uncertainty in the income for the next 12 months. These conditions raise substantial doubt about the Company's ability to continue as a going concern. [] Greenberg Partner Frost-Davies Earns 2025 Top Woman of Law ------------------------------------------------------------- Julia Frost-Davies, a shareholder in the Restructuring and Special Situations Practice in Greenberg Traurig, LLP's Boston office, was named one of Massachusetts Lawyers Weekly's 2025 "Top Women of Law." This honor celebrates the exceptional accomplishments of women attorneys as leaders, educators, and mentors, as well as their pro bono, social justice, advocacy, and business efforts. Frost-Davies and fellow award recipients will be honored at a reception Nov. 18 at the Hynes Convention Center. "Julia's leadership in restructuring and bankruptcy law, legal excellence, and dedication to clients and the community make her the ideal honoree for this award," David J. Dykeman and Terence P. McCourt, co-managing shareholders of Greenberg Traurig's Boston office, said in a joint statement. "She is an exceptional role model for aspiring young lawyers and a powerful presence in the Massachusetts business and legal community and beyond. We congratulate Julia on this well-deserved honor." Frost-Davies has more than 25 years of experience representing creditors in complex Chapter 11 cases. She regularly counsels clients in distressed debt situations and those facing bankruptcy litigation and appeals, appearing in courts across the country. Frost-Davies represents investors and lenders throughout the capital structure on all aspects of restructuring and related litigation, including debtor-in-possession financing, distressed mergers and acquisition transactions, claim and plan negotiation and litigation, and out-of-court work-outs. She works with companies from a diverse range of sectors and industries, including retail, energy, financial services, and municipal bonds. Additionally, Frost-Davies is a fellow of the American College of Bankruptcy and is ranked in Band 1 of Chambers USA. She has been recognized as a leading practitioner by numerous publications, including Business Today, The Legal 500, The Best Lawyers in America, Super Lawyers, and LawDragon, and Turnarounds & Workouts, which named her one of 15 outstanding restructuring lawyers nationwide in 2020. Most recently, she was named among the 56 U.S. women honored in The Secured Lender's 2024 Women in Secured Finance. About Greenberg Traurig's Boston Office: Greenberg Traurig's Boston office is home to more than 100 attorneys practicing in the areas of banking and finance, corporate, emerging technology, energy, environmental, gaming, governmental affairs, intellectual property, labor and employment, life sciences and medical technology, litigation, public finance, real estate, restructuring and bankruptcy, tax, and white collar defense and investigations. An important contributor to the firm's international platform, the Boston office includes a team of nationally recognized attorneys with both public and private sector experience. Working collaboratively with the firm's global network, the Boston team collectively offers clients decades of experience advising on complex legal matters and providing hands-on knowledge of the local business community. About Greenberg Traurig: Greenberg Traurig, LLP has more than 3,000 lawyers across 50 locations in the United States, Europe, the Middle East, Latin America, and Asia. The firm's broad geographic and practice range enables the delivery of innovative and strategic legal services across borders and industries. Recognized as a 2025 BTI "Best of the Best Recommended Law Firm" by general counsel for trust and relationship management, Greenberg Traurig is consistently ranked among the top firms on the Am Law Global 100, NLJ 500, and Law360 400. Greenberg Traurig is also known for its philanthropic giving, culture, innovation, and pro bono work. Web: http://www.gtlaw.com. [] U.S. Foreclosures Rises Year-Over-Year in Q3 2025 ---------------------------------------------------- ATTOM, a leading curator of land, property, and real estate data, released its Q3 2025 U.S. Foreclosure Market Report, which shows a total of 101,513 U.S. properties with a foreclosure filings during the third quarter of 2025, up less than 1 percent from the previous quarter and up 17 percent from a year ago. The report also shows a total of 35,602 U.S. properties with foreclosure filings in September 2025, down 0.3 percent from the previous month and up 20 percent from a year ago. "In 2025, we've seen a consistent pattern of foreclosure activity trending higher, with both starts and completions posting year-over-year increases for consecutive quarters," said Rob Barber, CEO at ATTOM. "While these figures remain within a historically reasonable range, the persistence of this trend could be an early indicator of emerging borrower strain in some areas." Foreclosure starts increase nationwide A total of 72,317 U.S. properties started the foreclosure process in Q3 2025, up 2 percent from the previous quarter and up 16 percent from a year ago. States that had the greatest number of foreclosure starts in third quarter of 2025 included: Texas (9,736 foreclosure starts); Florida (8,909 foreclosure starts); California (7,862 foreclosure starts); Illinois (3,515 foreclosure starts); and New York (3,234 foreclosure starts). U.S. Foreclosure Starts Those major metros with a population of 200,000 or more that had the greatest number of foreclosures starts in Q3 2025 included Houston, Texas (3,763 foreclosure starts); New York, New York (3,452 foreclosure starts); Chicago, Illinois (3,144 foreclosure starts); Miami, Florida (2,502 foreclosure starts); and Los Angeles, California (2,321 foreclosure starts). Worst foreclosure rates in Florida, Nevada, and South Carolina Nationwide one in every 1,402 housing units had a foreclosure filing in Q3 2025. States with the worst foreclosure rates were Florida (one in every 814 housing units with a foreclosure filing); Nevada (one in every 831 housing units); South Carolina (one in every 867 housing units); Illinois (one in every 944 housing units); and Delaware (one in every 974 housing units). Among 225 metropolitan statistical areas with a population of at least 200,000, those with the worst foreclosure rates in Q3 2025 were Lakeland, Florida (one in every 470 housing units); Columbia, South Carolina (one in 506); Cape Coral, Florida (one in 589); Cleveland, Ohio (one in 593); and Ocala, Florida (one in 665). U.S. Historical Total Foreclosure Activity Other major metros with a population of at least 1 million, including Cleveland at No. 4, and foreclosure rates in the top 20 worst nationwide, included Jacksonville, Florida at No.6; Las Vegas, Nevada at No.9; Houston, Texas at No. 14; and Orlando, Florida at No. 17. Bank repossessions increase 33 percent from year ago Lenders repossessed 11,723 U.S. properties through foreclosure (REO) in Q3 2025, up 4 percent from the previous quarter and up 33 percent from a year ago. U.S. Completed Foreclosures (REOs) Those states that had the greatest number of REOs in Q3 2025 were Texas (1,288 REOs); California (1,132 REOs); Florida (762 REOs); Pennsylvania (708 REOs); and New York (644 REOs). Average time to foreclose decreases 25 percent from last year Properties foreclosed in Q3 2025 had been in the foreclosure process for an average of 608 days. This represents a 6 percent decrease from the previous quarter and a 25 percent decrease from the same time last year, continuing a downward trajectory observed since mid-2020. Average Days to Complete Foreclosure States with the longest average foreclosure timelines for homes foreclosed in Q3 2025 were Louisiana (3,632 days); Nevada (2,667 days); Rhode Island (1,929 days); New York (1,867 days); and Hawaii (1,710 days). States with the shortest average foreclosure timelines for homes foreclosed in Q3 2025 were West Virginia (135 days); Texas (154 days); Virginia (160 days); Wyoming (165 days); and Montana (174 days). September 2025 Foreclosure Activity High-Level Takeaways -- Nationwide in September 2025, one in every 3,997 properties had a foreclosure filing. -- States with the highest foreclosure rates in September 2025 were Florida (one in every 2,182 housing units with a foreclosure filing); Delaware (one in every 2,325 housing units); Nevada (one in every 2,417 housing units); Indiana (one in every 2,697 housing units); and South Carolina (one in every 2,883 housing units). -- 23,761 U.S. properties started the foreclosure process in September 2025, down 2 percent from the previous month and up 20 percent from September 2024. -- Lenders completed the foreclosure process on 3,780 U.S. properties in September 2025, down 7 percent from the previous month and up 44 percent from September 2024. U.S. Foreclosure Market Data by State - Q3 2025 Nevada: 1,574 / 831, 18.70%, 12.67% New Hampshire: 209 / 3,083, -2.34%, 36.60% New Jersey: 3,495 / 1,080, 6.55%, 0.26% New Mexico: 468 / 2,029, -14.75%, 40.96% New York: 5,269 / 1,621, -2.71%, -1.22% North Carolina: 3,200 / 1,505, -2.91%, 40.78% North Dakota: 123 / 3,048, -4.65%, 19.42% Ohio: 4,959 / 1,063, 6.71%, 17.29% Oklahoma: 944 / 1,868, -15.79%, 11.98% Oregon: 668 / 2,752, -9.97%, 24.86% Pennsylvania: 3,269 / 1,768, -10.68%, -5.71% Rhode Island: 174 / 2,785, -11.68%, -14.71% South Carolina: 2,769 / 867, 0.80%, 25.35% South Dakota: 33 / 12,088, 13.79%, -5.71% Tennessee: 1,154 / 2,682, -14.01%, 3.96% Texas: 10,584 / 1,123, 8.21%, 63.23% Utah: 908 / 1,314, -0.87%, -13.52% Vermont: 50 / 6,741, -18.03%, 19.05% Virginia: 1,774 / 2,060, 0.74%, 21.59% Washington: 1,397 / 2,335, 2.80%, 35.76% West Virginia: 217 / 3,962, -16.54%, 100.93% Wisconsin: 914 / 3,010, -4.59%, 4.10% Wyoming: 131 / 2,100, -3.68%, 57.83% Summary: Despite some states recording quarterly declines, the broader trend suggests that foreclosure activity remains elevated compared to last year. Report conclusion: Foreclosure activity continued its gradual upward trend in Q3 2025, with both starts and completions posting annual increases. While overall levels remain relatively low by historical standards, the consistency of these gains over consecutive quarters highlights a market that may be slowly shifting amid broader economic pressures. Report methodology: The ATTOM U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the ATTOM Data Warehouse during the month and quarter. Some foreclosure filings entered into the database during the quarter may have been recorded in the previous quarter. Data is collected from more than 3,000 counties nationwide, and those counties account for more than 99 percent of the U.S. population. ATTOM's report incorporates documents filed in all three phases of foreclosure: Default -- Notice of Default (NOD) and Lis Pendens (LIS); Auction -- Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). For the annual, midyear and quarterly reports, if more than one type of foreclosure document is received for a property during the timeframe, only the most recent filing is counted in the report. The annual, midyear, quarterly and monthly reports all check if the same type of document was filed against a property previously. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state where the property is located, the report does not count the property in the current year, quarter or month. About ATTOM ATTOM powers innovation across industries with premium property data and analytics covering 158 million U.S. properties--99% of the population. Our multi-sourced real estate data includes property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, neighborhood and geospatial boundary information, all validated through a rigorous 20-step process and linked by a unique ATTOM ID. From flexible delivery solutions--such as Property Data APIs, Bulk File Licenses, Cloud Delivery, Real Estate Market Trends--to AI-Ready datasets, ATTOM fuels smarter decision-making across industries including real estate, mortgage, insurance, government, and more. ********* 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. 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