251021.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 21, 2025, Vol. 29, No. 293
Headlines
106 LIVONIA: Hires Law Offices of Jjais A. Forde as Legal Counsel
1300 DESERT: Court Extends Cash Collateral Access to Oct. 31
1918 EAST NINE: Hires Law Offices of Morris Fateha as Legal Counsel
25 MY RENTCO: Case Summary & Four Unsecured Creditors
27 CURIOUS OAK: Section 341(a) Meeting of Creditors on November 20
360 FAST: Gets Interim OK to Use Cash Collateral Until Nov. 21
7 AT BLUE LAGOON: Hires Martin G. McCarthy P.A. as Special Counsel
A-1 AUTOMOTIVE: Craig Geno Named Subchapter V Trustee
A.G. NEW YORK: L. Todd Budgen Named Subchapter V Trustee
ALL AMERICAN BLACK: Court Affirms Rulings in Gondal, et al. Case
AMERICAN DREAM: Taps Keller Williams Client's Choice as Broker
ANSON FINANCIAL: Breached FAM Joint Venture Agreement, Court Says
APPLIED MINERALS: Court Confirms Joint Plan of Reorganization
ARCHDIOCESE OF BALTIMORE: Fed. Govt. Shutdown Stalls Ch. 11 Case
ARTICON HOTEL: Seeks to Hire Eli & Chiou as Accountant
ATHERTON TRAIL: Gina Klump Named Subchapter V Trustee
BALLY'S CORP:S&P Affirms 'B-' Issuer Credit Rating, Outlook Stable
BARDWELL & SONS: Seeks Chapter 7 Bankruptcy in Indiana
BARTRAM LOGISTICS: U.S. Trustee Unable to Appoint Committee
BELLA INVESTMENT: U.S. Trustee Unable to Appoint Committee
BELLAVIVA AT WHISPERING: Case Summary & Eight Unsecured Creditors
BETANXT INC: S&P Alters Outlook to Negative, Affirms 'B-' ICR
BH DOWNTOWN: Seeks to Hire Concierge Auctions LLC as Auctioneer
BOOTLEGGER'S BREWERY: Seeks Subchapter V Bankruptcy in California
BRIDGE TO ADULTHOOD: Hires Kaplan Johnson Abate as Legal Counsel
BRONX CAR: Nat Wasserstein Named Subchapter V Trustee
CAPE FEAR: Seeks to Hire Titan Advisors LLC as Accountant
CEDAR VALLEY: Deadline for Panel Questionnaires Set for Oct. 24
CENTRAL JUNCTION: Voluntary Chapter 11 Case Summary
CHF MERRIMACK: S&P Affirms 'BB' LT Rating on Housing Revenue Bonds
CHIARELLA HOLDINGS: Self-Employment Income to Fund Plan
CHIARELLA HOLDINGS: Taps Law Offices of Krystina T. Tran as Counsel
CHOBANI GLOBAL: S&P Alters Outlook to Positive, Affirms 'B+' ICR
CLOVERLEAF ELECTRIC: Deborah Fish Named Subchapter V Trustee
COMMERCIAL METALS: S&P Affirms 'BB+' ICR, Outlook Stable
CORINTH AUTUMN: Trustee Taps Whitley Penn LLP as Tax Accountant
CORPORATE AIR: Unsecured Creditors to Get Share of GUC Fund
DHUKAN GHAR: Voluntary Chapter 11 Case Summary
DIOCESE OF ALBANY: Reaches $8MM Settlement in Clergy Abuse Case
DISCOVERY INSURANCE: A.M. Best Affirms B(Fair) FS Rating
DOUBLE HELIX: Taps Claim Counsel PLLC as Special Counsel
DUPLEX AT SLEEPY: Involuntary Chapter 11 Case Summary
ECS BRANDS: Committee Taps Michael Best & Friedrich as Counsel
EL BURRO: Aaron Cohen Named Subchapter V Trustee
EVERSTREAM SOLUTIONS: November 11 Deadline Set to Vote on Plan
FARMACY COFFEE: Seeks Chapter 7 Bankruptcy in New Mexico
FIRST BRANDS: Lenders Hire Huron for Help in Complex Bankruptcy
FIRSTBASE.IO INC: Attempts to Derail Ch. 11, Creditor Says
FIRSTBASE.IO INC: Unsecureds to be Paid in Full in Plan
FLAVORS GROUP: Seeks Chapter 7 Bankruptcy in Florida
FLUX POWER: Haskell & White Raises Going Concern Doubt
GARFIELD 1115: Seeks Chapter 11 Bankruptcy in Florida
GLENWOOD GFB: Seeks Chapter 11 Bankruptcy in Colorado
GRACE ROYALS: Seeks Subchapter V Bankruptcy in Colorado
GRAY MEDIA: Angel Oak Marks $600,000 Unsecured Note at 26% Off
HIGH WIRE: CFO Curtis Smith and Two Directors Step Down
HIGH WIRE: Sells Cybersecurity and Voice Assets to Tego Cyber
HIGH WIRE: Signs Letter of Intent to Acquire Elevation Aerospace
HIGHER GROUND EDUCATION: Gray Reed Represents Creditors' Committee
HIGHER GROUND: Updates Unsecured Claims Pay Details
HYPER FOX: Seeks to Hire David Freydin PC as Bankruptcy Counsel
IMAGE LOCATIONS: Seeks to Hire Jeffrey S. Shinbrot APLC as Counsel
INSYS THERAPEUTICS: Ex-CEO Babich Reaches $30MM Trustee Deal
INTEGRITY CELEBRATIONS: Rental Income & Contribution to Fund Plan
INVESTMENTS GROUP: Hires Crane Simon Clar & Goodman as Counsel
IT IS WELL: Seeks to Tap Smith Conerly as Bankruptcy Counsel
JANUS INTERNATIONAL: S&P Upgrades ICR to 'BB-' on Low Leverage
JASS LLC: Case Summary & Seven Unsecured Creditors
JEREMY KIDO: Seeks Chapter 11 Bankruptcy in California
JSL COMPANIES: Hires Thomsen Law Group as Bankruptcy Counsel
JSPEED LLC: Seeks Chapter 7 Bankruptcy in New Jersey
KABBAGE INC: Sues Former Execs, AmEx to Clawback $746MM in Ch. 11
KALIBER ELECTRIC: Hires Kaplan Johnson Abate & Bird LLP as Counsel
KBI 2015 TX: Seeks to Hire Spector & Cox PLLC as Legal Counsel
LAGUNA ART: Involuntary Chapter 11 Case Summary
LAGUNA FESTIVAL: Involuntary Chapter 11 Case Summary
LEGACY DRAYAGE: Court OKs DIP Financing From Working Capital
LEGACY DRAYAGE: Hires 4 Points Consultants as Financial Advisor
LEISURE INVESTMENTS: Court OKs Terra's Takeover of Miami Seaquarium
LIFESCAN GLOBAL: Defends Ch. 11 Plan Prior Confirmation Hearing
LIGHTHOUSE RESOURCES: May Deny Atlantic's Motion for Clarification
LINQTO INC: Court Denies Shareholders' Bid to Appoint Equity Panel
LUXURY TRANSPORTATION: L. Todd Budgen Named Subchapter V Trustee
MARI ARI: Unsecureds to Get Share of Income for 60 Months
MEMSTAR USA: Trade Unsecured Claims Will Get 50% of Claims in Plan
MERCER INTERNATIONAL: Angel Oak Marks $250,000 Note at 24% Off
METRO MATTRESS: Court Approves Liquidation Sales in 6 NY Stores
MJS MATERIALS: Linda Leali Named Subchapter V Trustee
MONTE KARL WEEDEN: Court Denies Bid to Employ Professional
MOTORS LIQUIDATION: Wins Bid to Enforce Sale Order Against Texas
MUNROE CONSTRUCTION: Seeks Chapter 7 Bankruptcy in New York
MURPHY ENERGY: Bank of America Wins Summary Judgment Bid
N.K.G. CORP: Ronald Friedman of Rimon PC Named Subchapter V Trustee
NAVIDEA BIOPHARMACEUTICALS: Taps Ordinary Course Professionals
NAVIDEA BIOPHARMACEUTICALS: Taps Pashman Stein Walder as Counsel
NEW FORTRESS: Angel Oak Marks $500,000 2026 Note at 65% Discount
NEW MEXICO TERMINAL: Case Summary & One Unsecured Creditor
NEW NORMAL BREWING: Mark Sharf Named Subchapter V Trustee
NEW NORMAL INDUSTRIES: Mark Sharf Named Subchapter V Trustee
NEWFOLD DIGITAL: Seeks Additional Creditor Support for Debt Deal
NEXXT GEN: Shareholder Asks Court to Dissolve Receivership
NORHART INVEST: Financial Strain Raises Going Concern Doubt
NOTRE DAME COLLEGE: Court to Appoint Receiver
OFFICE PROPERTIES: Defaults on $1.8 MM Interest Obligation
OFFICE PROPERTIES: S&P Lowers Senior Unsecured Notes to 'D'
ORCHARD FALLS: Hires Michael Best & Friedrich LLP as Counsel
PALM PACIFIC: Collapses Amidst Fraud Allegations
PARAMOUNT GOLD: Baker Tilly US Raises Going Concern Doubt
PARK 54 RESTAURANT: James LaMontagne Named Subchapter V Trustee
PARK 54: Seeks to Hire Madoff & Khoury LLP as Bankruptcy Counsel
PAULAZ ENTERPRISES: Unsecureds Will Get 15% of Claims over 5 Years
PET HOTELS: Claims to be Paid from Property Sale Proceeds
PLURI INC: Kesselman & Kesselman Raises Going Concern Doubt
PRESTON CYCLES: Court Rejects Bid to Use Cash Collateral
PRIMALEND: Creditors Weigh Forcing Company Into Bankruptcy
PRIME OUTSOURCE: Seeks Chapter 7 Bankruptcy in California
PROPHASE DIAGNOSTICS: Hires Crown Medical as Collections Counsel
PROSPECT MEDICAL: Berkshire Insurers Object to Proposed Plan
PUSHPA INTERNATIONAL: Ronald Friedman Named Subchapter V Trustee
R&R TRANSPORT INC: Tom Howley Named Subchapter V Trustee
R&R TRANSPORT: Tom Howley of Howley Law Named Subchapter V Trustee
RAMON RONQUILLO: Lakeview's Bid for Stay Relief Granted in Part
RED RIVER: Johnson & Johnson Faces U.K. Baby Powder Lawsuit
RENHURST HOLDINGS: Hires Passman & Jones as Litigation Counsel
RETREAT AT LAGUNA: Involuntary Chapter 11 Case Summary
REVIVE AESTHETICS: Seeks Chapter 7 Bankruptcy in Alaska
RIC LAVERNIA: Receiver Controls Milestone and Otisco, Court Rules
RIKERS ISLAND: Court Denies City's Receivership Order Review Bid
RIVERSIDE EXPRESS: Court OKs Interim Use of Cash Collateral
RIVULET ENTERTAINMENT: Financial Strain Raises Going Concern Doubt
ROBRAD TOOL: Case Summary & Nine Unsecured Creditors
RWE SERVICES: Seeks to Hire Norred Law PLLC as Bankruptcy Counsel
SAKS GLOBAL: Angel Oak Marks $250,000 in Old Notes at 77% Off
SANTA ANA EXPRESS: Gets Extension to Access Cash Collateral
SCARLET KITCHEN: Amends WebBank Secured Claim Pay
SCHAEFER RECOGNITION: Dawn Maguire Named Subchapter V Trustee
SCHAEFER RECOGNITION: Hires Keery McCue PLLC as Bankruptcy Counsel
SEABRIGHT SOCIAL: Seeks Chapter 7 Bankruptcy in California
SERENADE NEWPORT: Trustee Hires Ringstad as Legal Counsel
SONDER HOLDINGS: In Talks with Creditors to Avert Bankruptcy Filing
STANFORD AND 12TH: Taps Michel Miller as General Counsel
STANFORD MART: Taps Abbasi Law as General Insolvency Counsel
STAR INTERMEDIATE: Fitch Affirms B+ LongTerm IDR, Outlook Negative
STERNE WOOD: Claims to be Paid from Property Sale Proceeds
STRANGE BIKINIS: Edward Burr Named Subchapter V Trustee
STREETS OF NEW YORK: Seeks Subchapter V Bankruptcy in Arizona
STYX LOGISTICS: Hires Darby Law Practice as Bankruptcy Counsel
STYX LOGISTICS: Nathan Smith Named Subchapter V Trustee
SYNERGY FITNESS: Landlord Seeks Chapter 11 Trustee Appointment
TEGNA INC: M&A Investigates Proposed Sale to Nexstar Media
TODD CREEK: Hires Michael Best & Friedrich as Bankruptcy Counsel
TRICOLOR AUTO: Lender Says Company Exaggerated Car Inventory
TURKEY LEG: Bankruptcy to Close with $6.5MM Unpaid Claims
UNIVERSAL DESIGN: Unsecureds Will Get 100% over 120 Months
UNIVERSITY AUTO: Case Summary & Three Unsecured Creditors
US MAGNESIUM: Gets Extension to Pursue Sale, EPA Talks
US WIND: Warns Permit Revocation Could Trigger Bankruptcy
VALVES AND CONTROLS: Comm. Taps Raines Feldman as Delaware Counsel
VERIJET INC: Flyte Plans to Buy Aircrafts, Assets
VERSANT MEDIA: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable
VERSANT MEDIA: S&P Assigns 'BB' ICR on Debt Issuance
VIAVI SOLUTIONS: S&P Downgrades ICR to 'B+', Outlook Stable
VISTA PROPPANTS: Court Rules on MAALT Adversary Proceeding
WALKER EDISON: Committee Hires M3 Advisory as Financial Advisor
WALKER EDISON: Committee Taps Morris James as Legal Counsel
WAYNE LEE: Kevin Neiman Named Subchapter V Trustee
WEBSTERNT LLC: Taps Dawson Law Firm as Special Litigation Counsel
WEISS NEWMAN: Seeks Chapter 7 Bankruptcy in New York
WILDFANG HOLDINGS: Claims Will be Paid from Property Sale/Refinance
WORLDWIDE MACHINERY: Hires Piper Sandler & Co as Investment Banker
WORLDWIDE MACHINERY: Hires White & Case LLP as Bankruptcy Counsel
WORLDWIDE MACHINERY: Seeks to Hire Ordinary Course Professionals
WORLDWIDE MACHINERY: Taps Scott Avila of Paladin Management as CRO
YOUR MAJESTIC: Gets Extension to Access Cash Collateral
ZILLA ELECTRIC: Unsecured Creditors to Get 78 Cents on Dollar
ZMETRA LAND: Hires Seder & Chandler as Legal Counsel
[] Colorado Bankruptcy Filings Increased 12% in September 2025
*********
106 LIVONIA: Hires Law Offices of Jjais A. Forde as Legal Counsel
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106 Livonia Inc seeks approval from the U.S. Bankruptcy Court for
the Eastern District of New York to hire Jjais A. Forde, Esq. of
the Law Offices of Jjais A. Forde, PLLC to serve as legal counsel
in its Chapter 11 case.
Ms. Forde will provide these services:
(a) consult with the Debtor concerning the administration of the
case;
(b) investigate the Debtor's past transactions;
(c) commence actions with respect to the Debtor's avoiding powers
under the Bankruptcy Code;
(d) advise the Debtor with respect to transactions entered into
during the pendency of the case;
(e) assist the Debtor in the formation of a Chapter 11 plan; and
(f) perform any and all such other legal services as may be
required by the Debtor in the interest of the estate.
The firm will receive compensation at the hourly rate of $450 for
Senior Counsel, $275 for an Associate, $175 for a Paralegal, and
$100 for an Administrative Assistant.
The Law Offices of Jjais A. Forde, PLLC is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code and
does not hold or represent any interest adverse to the Debtor or
its estate, according to court filings.
The firm can be reached at:
Jjais A. Forde, Esq.
LAW OFFICES OF JJAIS A. FORDE, PLLC
814 W Merrick Road
Valley Stream, NY 11580-4829
Telephone: (516) 350-8325
Facsimile: (516) 350-5565
E-mail: bankruptcy@fordelawoffices.com
About 106 Livonia LLC
106 Livonia LLC is a Brooklyn-based real estate company that owns
property at 106 Livonia Avenue in Brooklyn.
106 Livonia LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-43334) on
July 11, 2025. In its petition, the Debtor reports estimated assets
between $500,000 and $1 million and estimated liabilities between
$1 million and $10 million.
Honorable Bankruptcy Judge Elizabeth S. Stong handles the case.
1300 DESERT: Court Extends Cash Collateral Access to Oct. 31
------------------------------------------------------------
1300 Desert Willow Road, LLC received third interim approval from
the U.S. Bankruptcy Court for the Southern District of New York to
use cash collateral.
The third interim order authorized the Debtor to use cash
collateral from October 3 to 31 in accordance with its budget, with
a 10% variance on a cumulative basis, or upon further written
consent of Romspen Investment, LP or further order of the court.
The Debtor projects total operational expenses of $38,191.65 for
October.
Romspen is the Debtor's only secured creditor, originally lending
$20 million but now claiming over $26 million is owed.
As adequate protection for any diminution in the value of its
collateral, Romspen was granted replacement liens on all
post-petition assets of the Debtor and the proceeds thereof, to the
same extent, validity and priority that existed on the petition
date.
The replacement liens are subject to U.S. Trustee fees, any Clerk's
filing fees, and the fees and commissions of a hypothetical Chapter
7 trustee of up to $10,000. The replacement liens do not apply to
any Chapter 5 causes of action.
As additional protection, Romspen will be granted an allowed
superpriority administrative expense claim.
The Debtor's authority to use cash collateral terminates upon
occurrence of certain events including dismissal or conversion of
its Chapter 11 case, appointment of a trustee, or any breach or
default by the Debtor of the interim order, that is not cured.
The Debtor owns a 595,530-square-foot commercial property located
at 1300 Desert Willow Road in Los Lunas, New Mexico, which is
valued at approximately $50 million. Currently, about 50% of the
space is vacant, and the Debtor is actively working to lease the
unoccupied areas to double its revenue.
In addition, the Debtor has a pre-bankruptcy bank balance of
approximately $97,000 and has since opened a debtor-in-possession
account at UMB Bank to handle post-petition funds.
A copy of the court's order and the Debtor's budget is available at
https://shorturl.at/ZKJDC from PacerMonitor.com.
About 1300 Desert Willow Road
1300 Desert Willow Road, LLC owns a property at 1300 Desert Willow
Road in Los Lunas, New Mexico, valued at $40 million.
1300 Desert Willow Road sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11375) on June 22,
2025. In its petition, the Debtor reported between $10 million and
$50 million in assets and liabilities.
Judge Philip Bentley oversees the case.
The Debtor is represented by H. Bruce Bronson, Esq., at Bronson Law
Offices, PC.
Romspen Investment LP, as lender, is represented by:
Brigid K. Ndege, Esq.
Bryan Cave Leighton Paisner, LLP
161 North Clark Street, Suite 4300
Chicago, Illinois 60601
Telephone: (312) 602-5000
Facsimile: (312) 602-5050
brigid.ndege@bclplaw.com
1918 EAST NINE: Hires Law Offices of Morris Fateha as Legal Counsel
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1918 East Nine Street LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to hire The Law Offices
of Morris Fateha to serve as legal counsel in its Chapter 11 case.
The Firm will provide these services:
(a) provide legal advice and related services to the Debtor;
(b) provide other advice and services to the Debtor as it may
request from time to time in keeping with the purposes of its
retention; and
(c) advise the Debtor as general bankruptcy counsel in connection
with its Chapter 11 case.
The Debtor has agreed to compensate the firm at its usual hourly
rates:
Partner: $350 per hour
Associates: $250 per hour
Paralegals: $150 per hour
The Law Offices of Morris Fateha is a "disinterested person" within
the meaning of Section 101(14) of the Bankruptcy Code, according to
court filings.
The firm can be reached at:
Morris Fateha, Esq.
LAW OFFICES OF MORRIS FATEHA
911 Avenue U
Brooklyn, NY 11223
Telephone: (718) 627-4600
About 1918 East Nine Street LLC
1918 East Nine Street LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 1-25-44212-nhl) on
September 3, 2025.
At the time of the filing, Debtor had estimated assets of between
$0 to $50,000 and liabilities of between $500,001 to $1 million.
Judge Nancy Hershey Lord oversees the case.
The Law Offices of Morris Fateha serves as the Debtor's legal
counsel.
25 MY RENTCO: Case Summary & Four Unsecured Creditors
-----------------------------------------------------
Two affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
25 My RentCo LLC (Lead) 25-12280
1375 Broadway
New York, NY 10018
Tribeca Mews Ltd. 25-12281
1375 Broadway
New York, NY 10018
Business Description: 25 My RentCo LLC is a New York limited
liability company that serves as a holding
entity for the remaining sponsor-controlled
condominium units at 25 Murray Street, New
York City. The Company acquired fee
ownership of the units from Tribeca Mews
Ltd. in July 2011 and became the successor
sponsor under the property's condominium
offering plan.
Tribeca Mews Ltd. is a New York corporation
formed in 2004 to act as the original
sponsor of the condominium project at 25
Murray Street, overseeing development,
contractor and consultant management,
project design, and construction progress.
The Company was also responsible for
marketing and selling the units and no
longer owns any condominium units in the
building.
Chapter 11 Petition Date: October 16, 2025
Court: United States Bankruptcy Court
Southern District of New York
Judge: Hon. Martin Glenn
Debtors' Counsel: Scott S. Markowitz, Esq.
Jacob Gabor, Esq.
TARTER KRINSKY & DROGIN LLP
1350 Broadway
11th Floor
New York, NY 10018
Tel: (212) 216-8000
Email: smarkowitz@tarterkrinsky.com
jgabor@tarterkrinsky.com
25 My RentCo LLC's
Total Assets: $11,053,987
25 My RentCo LLC's
Total Liabilities: $226,243
Tribeca Mews Ltd.'s
Estimated Assets: $0 to $50,000
Tribeca Mews Ltd.'s
Estimated Liabilities: $100,000 to $500,000
The petitions were signed by Brad Thurman, manager and president.
Full-text copies of the petitions are available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/ACGLTLQ/25_My_RentCo_LLC__nysbke-25-12280__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/JTG7EMQ/Tribeca_Mews_Ltd__nysbke-25-12281__0001.0.pdf?mcid=tGE4TAMA
List of 25 My RentCo's Four Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Tribeca Space Special $224,317
Managers, Inc. Assessment
c/o Rivkin Radler LLP
477 Madison Ave,
Ste. 410
New York, NY 10022
2. Thurcon Properties LTD Management $1,800
1375 Broadway Fees
New York, NY 10018
3. Pronto Gas Heating Supply Trade $125
181 Chrystie Street
New York, NY 10002
4. Tribeca Space Managers, Inc. Litigation $0
c/o Rivkin Radler LLP Claim
477 Madison Ave,
Ste. 410
New York, NY 10022
27 CURIOUS OAK: Section 341(a) Meeting of Creditors on November 20
------------------------------------------------------------------
On October 15, 2025, 27 Curious Oak LLC filed Chapter 11
protection in the Central District of California. According to
court filing, the Debtor reports between $1 million and $10 million
in debt owed to 1 and 49 creditors. The petition states funds will
be available to unsecured creditors.
A meeting of creditors under Section 341(a) to be held on November
20, 2025 at 11:00 AM at UST-SVND1, TELEPHONIC MEETING. CONFERENCE
LINE:1-888-330-1716, PARTICIPANT CODE:5961145.
About 27 Curious Oak LLC
27 Curious Oak LLC is a single-asset real estate entity under 11
U.S.C. Section 101(51B), holding its primary property at 27
Wellsona Road in Paso Robles, California.
27 Curious Oak LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case. No. 25-11903) on October
15, 2025. In its petition, the Debtor reports estimated assets
between $500,000 and $1 million and estimated liabilities between
$1 million and $10 million.
Honorable Bankruptcy Judge Victoria S. Kaufman handles the case.
The Debtor is represented by Jeffrey I. Golden, Esq. of GOLDEN
GOODRICH LLP.
360 FAST: Gets Interim OK to Use Cash Collateral Until Nov. 21
--------------------------------------------------------------
360 Fast, LLC received interim approval from the U.S. Bankruptcy
Court for the District of Kansas to use cash collateral to fund
operations.
The court's interim order authorized the Debtor to use cash
collateral until November
21 to pay the expenses set forth in its budget, including insurance
and taxes.
The Debtor's cash generated from the collection of pre-bankruptcy
accounts receivable, accounts, and inventory constitute cash
collateral. At the time of its bankruptcy filing, the Debtor had
bank account balances of approximately $1,600 and accounts
receivable of approximately $36,000. While it has not fully
analyzed all creditors' liens, the Debtor believes that Truliant
Federal Credit Union holds duly perfected liens on the cash
collateral.
As adequate protection, Truliant Federal Credit Union will be
granted replacement liens on property acquired by the Debtor after
the bankruptcy filing that is similar to the secured creditor's
pre-bankruptcy collateral.
In addition, Truliant will receive a monthly payment of $2,000,
beginning November 28.
The interim order required the Debtor to deposit $500 monthly into
Evans & Mullinix, P.A.'s trust account starting November 15, 2025,
until $3,000 is accumulated, to cover potential Subchapter V
trustee fees.
The next hearing is set for November 20.
About 360 Fast LLC
360 Fast, LLC offers specialized cleaning services.
360 Fast sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Kan. Case No. 25-21454) on October 7, 2025. In the
petition signed by Vijay Das, managing member, the Debtor disclosed
up to $100,000 in assets and up to $500,000 in liabilities.
Judge Robert D. Berger oversees the case.
Colin N. Gotham, Esq., at Evans & Mullinix, P.A., represents the
Debtor as legal counsel.
7 AT BLUE LAGOON: Hires Martin G. McCarthy P.A. as Special Counsel
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7 at Blue Lagoon (1), LLC and affiliate seek approval from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Martin G. McCarthy, P.A. as special counsel.
The firm will represent the Debtor in state court litigation in the
Circuit Court Of The Eleventh Judicial Circuit, For Miami-Dade
County, Florida Complex Business Litigation Division Case No.:
2023-017596-Ca-01 (Division 43), styled Tig Romspen Us Master
Mortgage LP, An exempted Cayman Islands limited partnership,
Plaintiff, vs. Debtors, et al. and in any appeals.
Martin G. McCarthy, P.A. assured the court that his firm does not
hold or represent any interest adverse to the Estate and is a
"disinterested person," as that phrase is defined in Sec. 101(14)
of the Bankruptcy Code as modified by Sec. 1107(b) of the
Bankruptcy Code.
The firm can be reached through:
Martin G. McCarthy, Esq.
Martin G. McCarthy, P.A.
430 S. Dixie Highway, Suite 211
Coral Gables, FL 33146
Telephone: (305) 522-6224
Facsimile: (866) 676-4671
Email: mccarthy@myattorneyservices.com.
About 7 at Blue Lagoon (1), LLC
7 at Blue Lagoon (1) LLC is a limited liability company.
7 at Blue Lagoon (1) LLC and affiliate sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-21286)
on September 26, 2025. In its petition, the Debtor reports
estimated assets between $50 million and $100 million and estimated
liabilities between $10 million and $50 million.
The Debtors are represented by Joel M. Aresty, Esq. of Joel M.
Aresty, P.A.
A-1 AUTOMOTIVE: Craig Geno Named Subchapter V Trustee
-----------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Craig Geno, Esq., at
the Law Offices of Craig M. Geno, PLLC, as Subchapter V trustee for
A-1 Automotive & Truck Center, Inc.
Mr. Geno will be paid an hourly fee of $250 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Geno declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Telephone: (601) 427-0048
Facsimile: (601) 427-0050
Email: cmgeno@cmgenolaw.com
About A-1 Automotive & Truck Center Inc.
A-1 Automotive & Truck Center, Inc. filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. W.D. Tenn. Case No.
25-25046) on October 3, 2025, with up to $50,000 in assets and
between $500,001 and $1 million in liabilities.
Judge M. Ruthie Hagan presides over the case.
Chasity Sharp Grice, Esq., at Peppel, Gomes & Macintosh, P.C.
represents the Debtor as legal counsel.
A.G. NEW YORK: L. Todd Budgen Named Subchapter V Trustee
--------------------------------------------------------
The Acting U.S. Trustee for Region 21 appointed L. Todd Budgen,
Esq., a practicing attorney in Longwood, Fla., as Subchapter V
trustee for A.G. New York Transportation, Inc.
Mr. Budgen will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Budgen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
L. Todd Budgen, Esq.
P.O. Box 520546
Longwood, FL 32752
Tel: (407) 232-9118
Email: Todd@C11Trustee.com
About A.G. New York Transportation Inc.
A.G. New York Transportation, Inc. offers luxury transportation
services in Orlando, Florida, including airport transfers, wedding
and corporate travel, and group charters. It holds authorization
for both intrastate and interstate passenger transport.
A.G. New York Transportation sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-06549) on
October 13, 2025, listing up to $50,000 in assets and between $1
million to $10 million in liabilities. Aleksey Golovnitskiy,
president of A.G. New York Transportation, signed the petition.
Judge Tiffany P. Geyer presides over the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden & Beaudine, LLP
represents the Debtor as legal counsel.
ALL AMERICAN BLACK: Court Affirms Rulings in Gondal, et al. Case
----------------------------------------------------------------
In the appeal and cross-appeal styled ALL AMERICAN BLACK CAR
SERVICE, INC., Plaintiff - Appellee, v. JAMSHAID GONDAL; MOHAMMAD
SHEIRYAR, Defendants - Appellants, No. 24-1981 (4th Cir.); and ALL
AMERICAN BLACK CAR SERVICE, INC., Plaintiff - Appellant, v.
JAMSHAID GONDAL; MOHAMMAD SHEIRYAR, Defendants - Appellees, No.
24-1982 (4th Cir.), Judges J. Harvie Wilkinson III, Stephanie D.
Thacker and Toby J. Heytens of the United States Court of Appeals
for the Fourth Circuit affirmed the judgment of the United States
District Court for the Eastern District of Virginia excluding
certain testimony, rejecting a ratification defense, denying lost
profit damages, and permitting a set off.
All American Black Car Service, Inc. was, at all relevant times, a
Virginia corporation that provided high end limousine services.
Appellee had three shareholders. Sohail Cheema owned 51%.
Appellants Mohammad Sheiryar and Jamshaid Gondal owned the
remaining 49% in even shares.
In addition to being minority shareholders, Appellants were also
employees. Sheiryar worked in the office, and Gondal managed the
fleet of vehicles. Appellants took nominal wages as W-2 employees
throughout the year, but they made the bulk of their money through
end of year shareholder distributions.
COVID-19 took its toll on many small businesses, and Appellee was
no exception. In 2020 and 2021, Appellee did not generate enough
revenue for shareholder distributions. And matters did not improve
through September 2022, at which point the three shareholders
decided to dissolve the corporation. They mutually agreed to
liquidate the fleet, pay off all existing debts, and split any
leftover money according to their pro rata ownership interests.
But that leftover money was supposed to sit in an escrow account
until the shareholders reached a final agreement on the dissolution
of the corporation.
Between late September 2022 and mid March 2023, Appellants sold 10
of the 12 cars belonging to Appellee, which brought in $317,000.
After paying off Appellee's existing debt -- which totaled
$88,559.31 -- roughly $228,000 remained. Then Appellants veered
off course. Rather than placing the money in escrow as agreed,
they pocketed the $228,000.
Around the same time, Cheema had apparently decided to resuscitate
the business, which had incurred some new debt and found itself in
Chapter 11 bankruptcy. As part of that bankruptcy, Appellee filed
this adversarial proceeding against Appellants, through which
Appellee sought return of the $228,000 and lost profit damages.
The case proceeded to a bench trial, where Appellants admitted they
took the $228,000 but raised two affirmative defenses. Appellants
first argued they were owed wages for time worked between 2020 and
2022, wages they said exceeded $228,000. In support, Sheiryar
testified about the number of hours he had worked during that
period. In order to establish his hourly rate, Sheiryar sought to
introduce into evidence a chart that listed a range of acceptable
hourly rates for workers in his position. But the bankruptcy court
excluded it, finding that those figures were improper expert
testimony.
For their second affirmative defense, Appellants argued that
Appellee had ratified their pocketing of the $228,000 because
Appellee had reported that money as distributions to Appellants on
its 2022 taxes. The court concluded that Appellee had not received
any benefit from Appellants keeping the full $228,000 and, as a
result, had not ratified the act.
The bankruptcy court, however, ruled that Appellee failed to prove
its lost profit damages to a reasonable degree of certainty and
therefore denied that requested relief. The bankruptcy court also
ruled that, despite being liable for converting the $228,000,
Appellants were entitled to a set off for their proportionate
equity stake in the company. That resulted in a 49% reduction in
the judgment. As a result, the final judgment amount was
$116,504.76.
Both parties appealed to the district court. Appellants, for their
part, appealed the bankruptcy court's rulings excluding Sheiryar's
testimony and denying their ratification defense. The district
court affirmed both. It first found that even if the bankruptcy
court had erred in excluding Sheiryar's testimony, such
uncorroborated testimony could not sustain a claim for unpaid
wages. As for the ratification defense, the district court said
that it had reviewed the bankruptcy court's ruling and did not "see
any fact-finding that was erroneous."
Appellee appealed the bankruptcy court's rulings denying it request
for lost profit damages and allowing Appellants a set off. The
district court affirmed those rulings, too. In doing so, it
explained that the bankruptcy court's decision to allow a set off
was equitable under the circumstances and did not warrant reversal.
Appellant appeals this adverse ruling, and Appellee cross appeals.
Appellants argue that the bankruptcy court erred by excluding
Sheiryar's testimony, in which he sought to opine on the
appropriate hourly rate of pay for his labor. Appellants contend
that this testimony should have been admitted as a lay opinion
pursuant to Rule 701 of the Federal Rules of Evidence. The Circuit
Judges disagree. They explain, "Sheiryar, however, did not seek to
opine on what he thought his time was worth based on his own
experience in the limousine industry. He instead sought to testify
about what others -- such as ZipRecruiter -- had said his type of
work was worth. Because this information was not based on
Sheiryar's own knowledge or experience, we cannot say that the
bankruptcy court abused its discretion in excluding Sheiryar's
testimony."
Appellants also argue that the bankruptcy court erred by rejecting
their ratification defense. Here, too, the panel disagrees. The
bankruptcy court -- sitting as the finder of fact -- heard the
evidence and found no basis to conclude that Appellee had
acquiesced to Appellants unilaterally awarding themselves a
distribution.
As an initial matter, the Circuit Judges hold that Appellee has
waived any argument that the bankruptcy court erred in denying it
lost profit damages. They conclude that "Appellee's remaining
assignment of error -- that Appellants were not entitled to a set
off for their equity interest in the corporation -- is meritless.
The three shareholders had mutually agreed to wind up the company,
which entailed liquidating the corporation's assets, paying off all
debts, and splitting any leftover funds. And because the
shareholders had taken the first two of those steps, Appellants
were entitled to their pro rata share of the leftover funds by
operation of Virginia law. Finding no reversible error, the
judgment below is affirmed."
A copy of the Court's Opinion dated October 15, 2025, is available
at https://urlcurt.com/u?l=a5UzGb
Counsel for Appellants/Cross-Appellees:
Virginia Whitner Hoptman, Esq.
Robert M. Marino, Esq.
REDMOND, PEYTON & BRASWELL
510 King Street, Suite 301
Alexandria, VA 22314
Telephone: (703) 684-2000
E-mail: vhoptman@rpb-law.com
rmmarino@rpb-law.com
About All American Black Car Service
All American Black Car Service, Inc., designs, builds, and installs
custom closet packages.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Case No. 23-10468) on March 23,
2023. In the petition signed by Sohail Cheema, president, the
Debtor disclosed up to $500,000 in both assets and liabilities.
Judge Brian F. Kenney oversees the case.
John P. Forest, II, Esq., at the Law Office of John P. Forest, II,
represents the Debtor as legal counsel.
AMERICAN DREAM: Taps Keller Williams Client's Choice as Broker
--------------------------------------------------------------
American Dream Land Development of Colorado, LLC seeks approval
from the U.S. Bankruptcy Court for the District of Colorado to
employ Karsten Musaeus of Keller Williams Client's Choice Realty as
its broker.
The firm will perform these services:
(a) handle the listing, marketing, and eventual sale of the
Properties;
(b) act as the Debtor's exclusive broker and assist the Debtor
with the listing and sale of each of the Properties;
(c) negotiate with potential buyers;
(d) show the Property; and
(e) consummate any sale.
For their services, the Debtor will pay Keller Williams a
commission of 6%, with such commission and fees to be paid upon
closing of each of the Properties.
According to court filings, Mr. Musaeus and Keller Williams hold no
interest adverse to the Debtor's estate and have no connection or
conflict of interest with the Debtor, its creditors, or other
parties in interest. They are disinterested as defined by Section
101(14) of the Bankruptcy Code.
The firm can be reached at:
Karsten Musaeus
Keller Williams Client's Choice Realty
The Karsten Team
1175 Kelly Johnson Blvd
Colorado Springs, CO 80920
Telephone: (719) 439-9898
Facsimile: (866) 770-2074
E-mail: thekarstenteam@kw.com
ryansweat@kw.com
About American Dream Land Development of
Colorado LLC
American Dream Land Development of Colorado LLC is a limited
liability company in Colorado.
American Dream Land Development of Colorado LLC sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Col. Case No. 24-17308) on December 10, 2024. In the petition filed
by Yichen Yang, as sole member, the Debtor reports estimated assets
and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Joseph G. Rosania Jr. handles the case.
The Debtor is represented by Jonathan M. Dickey, Esq. at KUTNER
BRINEN DICKEY RILEY PC.
ANSON FINANCIAL: Breached FAM Joint Venture Agreement, Court Says
-----------------------------------------------------------------
Judge Edward L. Morris of the United States Bankruptcy Court for
the Northern District of Texas issued a ruling in the adversary
proceeding captioned as B. FRAZIER MANAGEMENT, INC. F/K/A FRAZIER
ASSET MANAGEMENT, Sec. INC., AND BRIAN H. FRAZIER, INDIVIDUALLY
Plaintiffs, v. ANSON FINANCIAL, INC., Defendant, Adversary No.
21-04071 (Bankr. N.D. Tex.).
Before the Court is a partnership dispute between B. Frazier
Management, Inc. f/k/a Frazier Asset Management, Inc. and Anson
Financial, Inc. related to the operation of the Alvord 287 Joint
Venture.
On or about January 24, 1996, FAM and Jentex entered into a Joint
Venture Agreement creating the Joint Venture for the sole purpose
of purchasing, owning, managing, improving, and selling real
property described in 127.21 Acres in Wise County, Texas. The
purpose of the Joint Venture was subsequently expanded on or about
February 15, 1998 from a single land project in Wise County to
allow the Joint Venture to acquire additional land.
During its time as a partner in the Joint Venture, FAM has had its
corporate charter and privileges forfeited pursuant to section
171.309 of the Texas Tax Code on several occasions.
Prior to the removal of the claims and causes of action in this
adversary proceeding, the parties had been engaged in litigation in
the 342nd Judicial District Court of Tarrant County, Texas under
Cause No. 342-288776-16. On June 25, 2021 -- days before the case
was set for jury trial in state court -- Anson filed a voluntary
petition for relief under Chapter 11 (Subchapter V) of the United
States Bankruptcy Code, thereby initiating Case No. 21-41517 with
this Court. Thereafter, on November 1, 2021, Anson filed a Notice
of Removal pursuant to 28 U.S.C. Sec. 1452 to remove all claims and
causes of action pending in the State Court Action to the
Bankruptcy Court, thereby initiating this adversary proceeding.
FAM has asserted claims against Anson for breach of fiduciary duty,
defalcation, breach of contract, and conversion. Pursuant to the
Complaint, FAM alleges that, since becoming a partner in the Joint
Venture in 2014, Anson has misappropriated JV funds, distributed JV
profits without providing FAM its share of the proceeds, provided
inaccurate and incomplete financial records in an effort to hide
how it was misappropriating funds, and cut FAM out of the operation
and management of the Joint Venture.
Anson's Breach of the JV Agreement
FAM claims that Anson breached the JV Agreement by:
(1) failing to maintain a bank account for the Joint Venture,
(2) making unauthorized distributions to itself,
(3) failing to prepare and provide adequate accounting, and
(4) failing to obtain FAM's consent before making changes with
respect to the operation and management of the Joint Venture.
Anson contends that it fully performed its obligations to the Joint
Venture.
Based on the evidence at trial, the Court finds that Anson breached
its duties under the JV Agreement by failing to maintain correct
and complete books of account, failing to account monthly for all
JV transactions, and failing to prepare or provide bi-monthly or
year-end reports.
The Court concludes that, based upon the evidence, FAM has
established that it incurred actual damages in the amount of
$566,349.02 as a result of Anson's breaches of the JV Agreement
plus interest. To the extent this award is based upon the same
injury that underlies the breach of fiduciary duty claim --
specifically the $488,092.85 in misappropriated funds that underly
both actions -- the Court directs FAM to make an election as to
which theory of liability it wishes to recover these damages
under.
Attorney's Fees
FAM has also requested an award of attorney's fees, costs, and
expenses. FAM has prevailed on its claim for breach of contract and
is entitled to an award of damages for that breach. Therefore, FAM
is entitled to recover its attorney's fees.
Conversion
FAM alleges that Anson converted funds that it received and held
for the benefit of the Joint Venture by making unauthorized
transfers and disbursements for Anson's benefit and to FAM's
detriment. Anson has raised several objections in response, arguing
first that FAM lacks the capacity to bring its claim for conversion
because the cause of action belongs to the Joint Venture. Anson
also argues that the conversion claim is improper because the claim
is for money. Additionally, to the extent an action for conversion
is proper in this case, Anson argues that FAM does not have any
right or interest in the money beyond the redemption value of its
interest due to its status as a withdrawn partner.
FAM asserts that Anson converted the funds it received on behalf of
the Joint Venture as the servicer of the JV Notes. Specifically,
FAM alleges Anson misappropriated FAM's 50% of the Joint Venture
income by depositing all the funds it received on behalf of the
Joint Venture into the Anson operating account for its own benefit.
Anson, however, argues that FAM had no right or interest in the JV
income beyond the redemption value of its interest as a result of
FAM's status as a withdrawn partner.
The Court finds that FAM cannot prevail on its conversion claim
because the funds at issue were JV property at the time of the
alleged conversion. Judge Morris explains, "In this case, FAM did
not own and was not entitled to possess the funds that Anson
received on behalf of the Joint Venture because those funds are
property of the Joint Venture until distributed. Moreover, to the
extent that FAM's entitlement to 50% of the JV income creates an
interest sufficient to establish this element, the claim would be
for a general indebtedness that can be satisfied through the
payment of money generally as opposed to a claim concerning
identifiable funds."
Anson's Counterclaims
Anson has asserted several counterclaims against FAM and Frazier,
including a declaratory judgment action, a breach of contract
claim, and a breach of fiduciary duty claim related to FAM's tax
forfeiture. On each count, Anson has not sought any compensatory
damages but instead requested an award of fees and costs as well as
an order limiting FAM and Frazier's damages to the redemption value
of FAM's JV interest minus any damages caused by FAM's wrongful
withdrawal. FAM and Frazier, in response, have denied all claims.
Anson asks this Court to enter a declaratory judgment stating that
FAM withdrew from the Joint Venture upon its tax forfeiture and
that its interest was automatically withdrawn, consistent with the
provisions of the TBOC. However, the Court finds that, because
FAM's charter was retroactively reinstated, FAM's existence was not
terminated, and it therefore did not withdraw from the Joint
Venture. Therefore, Anson is not entitled to such declaratory
relief.
Anson asserts that FAM breached the JV Agreement by wrongfully
withdrawing from the Joint Venture as a result of FAM's tax
forfeiture. The Court finds that Anson cannot establish that FAM,
as a result of its tax forfeiture, breached the JV Agreement.
Anson contends that FAM and Frazier breached their duties of care
and loyalty by willfully terminating FAM's corporate existence,
failing to negotiate in good faith for the redemption value of
their interest, and engaging in vexatious conduct that caused the
Joint Venture and Anson to incur unnecessary expenses in this
litigation.
The Court finds that, because FAM did not withdraw from the Joint
Venture in 2013 as a result of its tax forfeiture, FAM's JV
interest was not redeemed by the Joint Venture but rather was
retained by FAM. Moreover, neither the duty of loyalty nor the
duty of care require that a partner accept an offer to buy out its
interest. Therefore, the Court finds that FAM did not have a duty
to negotiate the redemption price of its JV interest and did not
breach its duties as a partner by initiating this suit against
Anson.
In sum, the Court, based on the evidence presented at trial and the
arguments of counsel, concludes that Anson failed to establish that
it was entitled to judgment on any of its counterclaims against FAM
and Frazier.
Proof of Claim
FAM and Frazier filed a proof of claim in Anson's bankruptcy case
based on the claims asserted by FAM against Anson in this action in
the amount of $674,515.57. Based upon the claims asserted in this
action in the amount of $674,515.57.494 Anson objected on the basis
that FAM is a withdrawn partner and therefore not entitled to JV
profits. The Court, having determined that FAM did not withdraw and
remains a partner in the Joint Venture, overrules Anson's
Objection. The claim asserted by FAM and Frazier will be allowed in
favor of FAM in the amount of the damages awarded hereby plus the
amount of attorneys' fees, costs, and expenses hereafter awarded
and determined to have been incurred as of the Petition Date.
The Court finds and concludes FAM has proven and established that
Anson breached its duties of loyalty and care and breached the JV
Agreement.
A copy of the Court's Memorandum Opinion dated October 16, 2025, is
available at https://urlcurt.com/u?l=tKCB2a from PacerMonitor.com.
About Anson Financial
Anson Financial, Inc. filed a Chapter 11 petition (Bankr. N.D. Tex.
Case No. 21-41517) on June 25, 2021. At the time of the filing,
the Debtor had between $1 million and $10 million in both assets
and liabilities. J. Michael Ferguson, president, signed the
petition.
Judge Edward L. Morris oversees the case.
The Debtor tapped Weycer, Kaplan, Pulaski & Zuber, P.C. and Lee Law
Firm, PLLC as legal counsel.
APPLIED MINERALS: Court Confirms Joint Plan of Reorganization
-------------------------------------------------------------
The Honorable Peggy Hunt of the United States Bankruptcy Court for
the District of Utah confirmed the Joint Plan of Reorganization
proposed by debtor Applied Minerals, Inc., and Halloysite
Investment, LLC.
The Court finds that all of the applicable requirements for
confirmation set forth in 11 U.S.C. Sec. 1129 have been satisfied.
The Motion to Modify Plan is granted.
Under the Plan, Halloysite will provide cash up to $3,350,000 to
the Debtor and/or Creditors in exchange for 300,000 shares of New
Stock, a minimum of 80% of the Reorganized Debtor's total New
Equity, and Causes of Action. Halloysite is releasing its rights as
a senior secured super priority creditor. The Cash funded, or to be
funded by Halloysite, includes:
* $2,100,000 of total consideration to the Class 2 Claim Fund:
-- $1,500,000 cash delivered on the Effective Date to fund
the Class 2 Claim Fund that will be distributed pro rata
to the holders of Allowed Class 2 Claims; plus
-- Allowed Class 2 Claims may elect to receive an additional
pro rata distribution of up to $600,000 or 75,000 shares
of stock in the Reorganized Debtor, plus a warrant to
purchase additional shares so as to effective double the
number of shares;
* $650,000 for Creditor Distributions and to Fund the Debtor's
Operations – Six Hundred Fifty Thousand Dollars ($650,000) cash
delivered on the Effective Date (a) to fund the $70,000 Convenience
Claims Fund, (b) to pay Allowed Priority Claims, (c) to pay Allowed
Administrative Expenses, and (d) to fund the Debtor's future
operations and legal expenses (i.e., the Operations & Litigation
Fund); and
* $600,000 Funded under the DIP Credit Agreement – Six Hundred
Thousand Dollars ($600,000) cash delivered after the Petition Date
pursuant to the DIP Credit Agreement, plus accrued interest and
loan charges.
A copy of the Court's Order dated October 16, 2025, is available at
http://urlcurt.com/u?l=P9FGKAfrom PacerMonitor.com.
Attorneys for debtor-in-possession APPLIED MINERALS, INC.:
Matthew M. Boley, Esq.
Jeffrey Trousdale, Esq.
COHNE KINGHORN, P.C.
111 E. Broadway, 11th Floor
Salt Lake City, UT 84111
Telephone: (801) 363-4300
E-mail: mboley@ck.law
jtrousdale@ck.law
Attorneys for HALLOYSITE INVESTMENT, LLC:
Ellen Ostrow, Esq.
FOLEY & LARDNER, LLP
95 S. State Street, Suite 2500
Salt Lake City, UT 84111
Telephone: (801) 401-8952
E-mail: eostrow@foley.com
About Applied Minerals
Applied Minerals, Inc., is a minerals exploration and mining
company. Applied Minerals, Inc., in Eureka, Utah, sought relief
under Chapter 11 of the Bankruptcy Code filed its voluntary
petition for Chapter 11 protection (Bankr. D. Utah Case No.
24-25849) on Nov. 11, 2024, listing $1 million to $10 million in
assets and $50 million to $100 million in liabilities. Christopher
T. Carney as president and chief executive officer, signed the
petition.
Judge Joel T Marker oversees the case.
COHNE KINGHORN, P.C., serves as the Debtor's legal counsel.
ARCHDIOCESE OF BALTIMORE: Fed. Govt. Shutdown Stalls Ch. 11 Case
----------------------------------------------------------------
Elise Winland of Catholic Vote reports that the federal government
shutdown has brought the Archdiocese of Baltimore's bankruptcy case
to a standstill, stalling compensation for survivors of clergy
sexual abuse.
The U.S. Trustee Program, part of the Department of Justice that
oversees bankruptcy courts, is largely unstaffed during the
shutdown, according to the report. Acting U.S. Trustee David Asbach
has requested a stay of all proceedings until federal attorneys
return to work.
In his motion, Asbach expressed regret over the disruption but
emphasized the necessity of the pause. "The United States Trustee
hereby moves for a stay of all proceedings until Department of
Justice attorneys are permitted to resume their usual litigation
functions," he wrote, as reported by WYPR.
The pause marks another blow to survivors who have waited years for
resolution. One survivor told the bankruptcy court in August 2025
that what began as a hopeful process under Maryland's Child Victims
Act has become "a circus," highlighting a lack of transparency and
accountability.
The Archdiocese filed for Chapter 11 protection in September 2023,
seeking to handle the anticipated flood of lawsuits following the
new law lifting the statute of limitations on child sexual abuse
claims. With mediation stalled, creditor groups representing
victims have urged the court to dismiss the bankruptcy altogether
and allow individual lawsuits to proceed.
About the Archdiocese of Baltimore
The Archdiocese of Baltimore operates as a non-profit religious
organization. The organization provides catholic charities,
chancery, pastoral council, policies, presbyteral council, and
child and youth protection.
The Archdiocese of Baltimore sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Md. Case No. 23-16969) on Sept. 29,
2023. In the petition filed by Archbishop William E. Lori, the
Debtor estimated assets between $100 million and $500 million and
liabilities between $500 million and $1 billion.
The Debtor is represented by Catherine Keller Hopkin, Esq. at YVS
Law, LLC.
ARTICON HOTEL: Seeks to Hire Eli & Chiou as Accountant
------------------------------------------------------
Articon Hotel Services LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to employ Eli & Chiou
as its accountants.
The firm will be providing tax preparation, bookkeeping and
accounting services for the Debtor.
The firm will be paid at these rates:
Tax Services Pricing:
-- 2025 Federal Tax Return (1065): $3,000 to $4,500
-- 2025 Electronic State Tax Returns ($360 Per State): Estimated
10 States for a Total of $3,600
-- Personal Tax Returns for Both Partners: Included in pricing
above.
Accounting Services Pricing:
-- 2025 Revenue Recognition Analysis: $315 per Contract
-- 2025 Bookkeeping and Account Reconciliation: $6,000
Sales Tax Consulting:
-- Sales Tax Consulting: $225/hr
-- VDA per State: $5,000
-- Sales Tax Registrations per State: $1,000
The Debtor has agreed to pay the accountant a retainer of $25,000
to be paid in 5 monthly installments.
As disclosed in the court filings, Eli & Chiou is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Jim Chiou
Samuel E. Neustadt
Eli & Chiou
237 Locust Road
Wilmette, IL 60091
Tel: (847) 226-3340
Email: tax@eliandchiou.com
About Articon Hotel Services LLC
Articon Hotel Services, LLC manufactures and supplies furniture,
fixtures and equipment as well as construction materials for the
hospitality industry in the United States. The Company provides
case goods, soft seating, millwork, lobby furniture, artwork,
mirrors and lighting, alongside shower surrounds, flooring, and
wall coverings, serving hotel projects through design, fabrication,
installation and compliance support. Articon works with major hotel
brands including Holiday Inn, Hilton, Embassy Suites, Courtyard and
Fairfield Inn & Suites.
Articon Hotel Services sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-13601) on September
2, 2025. In its petition, the Debtor reported estimated assets
between $100,000 and $500,000 and estimated liabilities between $1
million and $10 million.
The Debtor is represented by Scott R. Clar, Esq., at Crane, Simon,
Clar & Goodman.
ATHERTON TRAIL: Gina Klump Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 17 appointed Gina Klump, Esq., at the
Law Office of Gina R. Klump, as Subchapter V trustee for Atherton
Trail, LLC.
Ms. Klump will be paid an hourly fee of $525 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Klump declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gina Klump, Esq.
Law Office of Gina R. Klump
11 5th Street, Suite 102
Petaluma, CA 94952
Phone: (707) 778-0111
Email: gklump@klumplaw.net
About Atherton Trail LLC
Atherton Trail, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 25-30821) on October
9, 2025, listing between $1 million and $10 million in assets and
liabilities.
Judge Hannah L. Blumenstiel presides over the case.
BALLY'S CORP:S&P Affirms 'B-' Issuer Credit Rating, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on
Bally's Corp.
S&P said, "However, we placed our 'B' issue-level rating and '2'
recovery rating on Bally's secured debt on CreditWatch with
positive implications as debt repayment may improve secured
lenders' recovery prospects. We also assigned our 'B' issue-level
rating and '2' recovery rating to the proposed $600 million amended
and extended term loan B and placed the issue-level rating on
CreditWatch with positive implications given prospects for
additional secured debt repayment using proceeds from the Bally's
Twin River Lincoln Casino sale leaseback transaction, if
completed.
"We also affirmed our 'CCC' issue-level rating and '6' recovery
rating on Bally's unsecured debt.
"The stable outlook reflects our view that Bally's will have
sufficient liquidity to cover fixed charges and development
spending despite our expectation for very high leverage from
spending on development projects."
Bally's Corp. announced that it closed the combination of its
International Interactive business with Intralot S.A. and received
cash and equity consideration. Following the combination, Bally's
owns a 58% equity interest and will fully consolidate Intralot in
its financial reporting.
The company intends to allocate at least $1 billion of the
after-tax cash proceeds from the transaction to repay its secured
debt, including outstanding revolver balances. Bally's also intends
to further reduce secured debt by $500 million if the contemplated
sale and leaseback of Bally's Twin River Lincoln Casino Resort gets
lender consent and is completed.
The anticipated impact of these transactions on our S&P adjusted
highly leveraged credit measures is modest, and liquidity remains
adequate to fund multiple ongoing and planned investment projects.
S&P said, "The rating affirmation reflects our expectation that
Bally's will have sufficient liquidity to service its capital
structure. Bally's recently completed the combination of its
International Interactive business with Intralot S.A. Bally's
received EUR1.530 billion of cash and EUR1.136 billion of newly
issued shares in new Intralot as consideration for the transaction.
As a result, Bally's is now Intralot's majority shareholder, with a
58% equity interest. Therefore, we anticipate it will consolidate
Intralot into its financial statements. Bally's intends to allocate
at least $1 billion of the after-tax cash proceeds from the
transaction to repay its secured debt, including outstanding
revolver balances." It also plans to use at least $200 million of
the proceeds to fund the development of its Chicago casino.
Bally's is also seeking to amend its existing credit agreement as
part of its Lincoln Sale-Leaseback consent solicitation process to
extend the maturity of up to $600 million of the term loan B by two
years to October 2030, subject to a springing maturity concurrent
with the existing 2028 senior secured debt maturity and ahead of
the 2029 unsecured notes maturity. As part of the amendment, the
company is seeking consent for the sale and leaseback of the Twin
River Casino (Bally's Lincoln) to Gaming & Leisure Properties Inc.
(GLPI) for $735 million. Bally's has already secured consent for
the sale leaseback from all its revolver lenders as part of its
recent amendments to extend a portion of its revolver and
subsequently increase its extended commitments. If Bally's gets
consent, the company is proposing to repay $500 million of first-
lien debt within 10 business days of the closing of the Bally's
Lincoln sale leaseback, including canceling 7.5% of existing
revolver capacity, with the remainder allocated toward its
outstanding secured debt. In addition, Bally's Chicago has become a
restricted subsidiary and will become a guarantor for the secured
debt.
The proposed amend and extend transaction is debt-for-debt, extends
the company's maturity profile, and modestly increases interest
expense because the extended term loan tranche will carry a higher
spread. Bally's will also pay a 2% fee on the consented amount of
the amended and extended term loan.
S&P said, "We expect elevated leverage through 2026. Pro forma for
the Intralot combination and sale leaseback of Bally's Lincoln, we
expect consolidated S&P Global Ratings-adjusted leverage of about
12x in 2025, largely due to elevated debt levels stemming from the
development of Bally's Chicago and transaction-related costs
stemming from the Queen merger and Intralot transaction. In 2026,
we expect leverage will decline but remain elevated in the mid- to
high-9x area as the company benefits from a full year of operations
at its newly renovated Queen properties, modest growth in the rest
of the portfolio, lower North American interactive losses and
reduced transaction costs. Bally's also expects to complete its
initial phase of the Chicago permanent casino development and open
it in the fourth quarter of 2026. Despite elevated leverage, we
expect Bally's will generate sufficient EBITDA to service its
capital structure with forecast consolidated EBITDA interest
coverage of about 1.3x-1.4x in 2025 and 2026.
"We expect Bally's will maintain sufficient liquidity to weather
ongoing high development spending. Bally's has access to $940
million of development funding for hard costs of Bally's Chicago
Casino Resort from GLPI. The company currently has revolver
commitments of $670 million through October of 2026 and up to $510
million of extended revolving commitments through 2028, subject to
step-downs. In connection with the Intralot transaction, Bally's
also secured commitments for a new $500 million secured debt
facility to repay existing secured debt and a $100 million
delayed-draw secured debt facility for general corporate purposes,
including the development of Bally's Chicago.
"Following debt repayment from the Intralot transaction and
assuming Bally's is able to execute its sale leaseback of Bally's
Lincoln, we believe the combination of debt repayment, new
committed credit facilities, and future cash flow contribution from
its development projects will enable the company to address its
remaining secured debt that matures in 2028. Its unsecured notes
mature in 2029 and 2031.
"We also expect Bally's will retain a modest portion of its
EUR1.530 billion in after-tax sale proceeds from the Intralot
transaction, following its planned secured debt repayment.
Furthermore, we expect Bally's will receive dividends from
Intralot, given Intralot's publicly communicated policy to pay out
35% of net income as dividends with flexibility for higher
distributions depending on performance and capital structure
considerations."
Development projects and other investments pose leveraging risk,
limiting ratings upside. Bally's is pursuing additional
developments in both New York and Las Vegas. The company's $4
billion casino resort proposal in the Bronx is one of three
finalists for up to three downstate New York casino licenses
available. S&P said, "We expect New York will announce licensing
decisions by the end of the year, and it is not required to award
all three licenses. Additionally, Bally's announced it will
commence development of Bally's Las Vegas, a new casino resort at
the former site of the Tropicana Las Vegas, in the first half of
2026. Although the company has not announced how it would finance
the Las Vegas development or the New York project if it won one of
the licenses, we expect it would likely fund them with additional
debt, which could further strain the rating."
Bally's recently paid the remaining tranche of its AUD $200 million
investment in the Star Entertainment Group Ltd. This investment
could require future capital outlays as it implements necessary
controls to comply with regulatory requirements in Australia, and
recovers lost market share, which could also increase leverage.
S&P said, "We placed Bally's secured debt ratings on CreditWatch
with positive implications because its intended use of sale
leaseback proceeds to repay debt may improve recovery prospects for
secured lenders. Although the sales of the International
Interactive segment and real estate of Bally's Lincoln lower our
emergence enterprise valuation in our recovery analysis, the
company will use a significant portion of the sale proceeds to
repay secured debt. It will also reduce its revolver commitments by
up to 37.5% if both the International Interactive sale and the
Bally's Lincoln sale leaseback are completed, further reducing the
amount of secured debt outstanding in our simulated default
scenario. The addition of Bally's Chicago as a restricted
subsidiary and guarantor for the secured debt partially offsets the
valuation decline. The combination of these factors may improve
secured recovery prospects above 90%, which could result in a
one-notch upgrade of our issue-level ratings on Bally's secured
debt to 'B+' from 'B'. However, if Bally's is unable to get consent
for its sale leaseback of Bally's Lincoln and use the proceeds to
repay additional debt, or if the company utilizes its new secured
credit facilities and does not repay debt with the proceeds, we
expect recovery prospects would not improve enough to support a
higher issue-level rating.
"We consolidate Intralot in our assessment of Bally's given its
majority ownership. We believe Intralot is moderately strategic to
Bally's Corp. This reflects our view that Intralot continues to
play a meaningful role in the group's long-term strategic
direction, supported by its established position in the iGaming
market and attractive growth prospects, particularly in Bally's
core U.S. market. Bally's is a majority shareholder and will remain
actively involved in the management of Intralot, with Bally's CEO
Robeson Reeves assuming the chief executive role for both
companies. Additionally, Bally's Chairman and CFO will comprise 2
of Intralot's 11 board seats. We consider Intralot's operations in
our assessment of business risks, and we consolidate its financials
in our credit measures for Bally's. The addition of Intralot's
lottery operations modestly improves scale and adds geographic and
product diversity. We view operations in the lottery industry
favorably given the industry's long history of global revenue
growth and resiliency in periods of economic stress.
"The stable outlook reflects our view that Bally's will have
sufficient liquidity from EBITDA generation, development funding,
and asset sales to cover its operating needs, fixed charges and
significant development capital spending despite our expectation
for very high leverage from spending on development projects.
"We could lower our rating on Bally's if its Chicago development
project faces construction delays or cost overruns that strain its
liquidity or requires it to seek additional funding. We could also
lower our rating if Bally's funds its development in Las Vegas or
potential development in New York in a manner that causes us to
question the sustainability of its capital structure. We could also
lower our rating if Bally's underperforms our base-case forecast or
development projects ramp slower than we expect, causing EBITDA
interest coverage to deteriorate materially compared with our
base-case forecast and straining liquidity.
"We believe an upgrade is unlikely over the next two years given
Bally's elevated leverage and negative discretionary cash flow from
the development spending associated with the Chicago project, its
Las Vegas development, and potential New York development. That
said, we could raise the rating if we believe its total S&P Global
Ratings-adjusted debt to EBITDA will stay under 7x, incorporating
development spending, operating volatility, and any further
leveraging acquisitions or shareholder returns."
BARDWELL & SONS: Seeks Chapter 7 Bankruptcy in Indiana
------------------------------------------------------
On October 17, 2025, Bardwell & Sons Properties LLC voluntarily
filed for Chapter 7 bankruptcy protection in the Southern District
of Indiana. Court documents show the company's debts estimated
between $50 million and $100 million. The filing indicates that
Bardwell & Sons Properties LLC has between 1 and 49 creditors.
About Bardwell & Sons Properties LLC
Bardwell & Sons Properties LLC is a single asset real estate
company.
Bardwell & Sons Properties LLC sought relief under Chapter 7 of the
U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 25-06332) on
October 17, 2025. In its petition, the Debtor reports estimated
assets between $100,001 and $1 million and estimated liabilities
between $50 million and $100 million.
Honorable Bankruptcy Judge James M. Carr handles the case.
The Debtor is represented by Jason D. Clark, Esq. of McNeely Law
LLP.
BARTRAM LOGISTICS: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The U.S. Trustee for Region 8 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Bartram Logistics, LLC.
About Bartram Logistics LLC
Bartram Logistics, LLC, doing business as Bartram Electric,
operates as an electrical subcontractor providing installation and
related services for construction projects in the Southeastern
United States. The company focuses on multifamily, hotel, and
restaurant developments and undertakes electrical scopes of work
under general contractors. It has completed more than 70 projects
in the region and continues to work on dozens of active and
contracted assignments.
Bartram Logistics sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 25-03788) on September
9, 2025. In its petition, the Debtor reported between $1 million
and $10 million in assets and liabilities.
Honorable Bankruptcy Judge Randal S. Mashburn handles the case.
The Debtor is represented by Erin Malone-Smolla, Esq., at Bradley
Arant Boult Cummings, LLP.
BELLA INVESTMENT: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
The U.S. Trustee for Region 3 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Bella Investment Properties, LLC.
About Bella Investment Properties
Bella Investment Properties, LLC is classified as a single-asset
real estate debtor under 11 U.S.C. Section 101(51B).
Bella Investment Properties LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Pa. Case No. 25-13573) on
September 8, 2025. In its petition, the Debtor reported estimated
assets between $100,000 and $500,000 and estimated liabilities
between $1 million and $10 million.
Honorable Bankruptcy Judge Derek J. Baker handles the case.
The Debtor is represented by David B. Smith, Esq., at Smith Kane
Holman, LLC.
BELLAVIVA AT WHISPERING: Case Summary & Eight Unsecured Creditors
-----------------------------------------------------------------
Debtor: Bellaviva at Whispering Hills, LLC
10524 Moss Park Road
Suite 204-754
Orlando FL 32832
Business Description: Bellaviva at Whispering Hills, LLC, based in
Orlando, Florida, develops and manages
residential real estate, focusing on the
Whispering Hills subdivision in Lake County.
The Company is a single-asset real estate
entity whose activities are concentrated on
designing, building, and promoting
residential properties in this development.
Chapter 11 Petition Date: October 16, 2025
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 25-06655
Debtor's Counsel: Stewart J. Subjinski, Esq.
LIPPES MATHIAS, LLP
10151 Deerwood Park Blvd., Bldg. 300, Ste. 300
Jacksonville FL 32256
Tel: 904-660-0020 x 1568
Email: ssubjinski@lippes.com
Estimated Assets: $50 million to $100 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Jean Marsan as manager.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/KQGRYHI/Bellaviva_at_Whispering_Hills__flmbke-25-06655__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Eight Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Jimerson Birr, P.A. Professional $24,422
701 Riverside Park Pl. Services
Jacksonville, FL 32246
Brandon C. Meadows
Phone: 904-389-0050
Email: bmeadows@jimersonfirm.com
2. Bellaviva at Whispering Hills Government $31,901
Community Development District Services
P.O. Box 810036
Boca Raton, FL 33481
Marsan Real Estate Group
4407 Vineland Rd., Ste. D11
Orlando, FL 32811
Marsan Real Estate Group
4407 Vineland Rd., Ste. D11
Orlando, FL 32811
3. Modica & Associates, Inc. Professional $29,060
302 Mohawk Road Services
Clermont, FL 34715
Clark Modica
Phone: 352-394-2000
Email: clark@modica.cc
4. Tract Engineering, LLC Professional $93,671
5137 S Lakeland Dr, Ste. 3 Services
Lakeland, FL 33813
Daniel Kovacs
Phone: 863-323-1170
Email: dkovacs@tracteng.com
5. Johnston's Surveying, LLC Professional $9,750
900 Cross Prairie Pkwy Services
Kissimmee, FL 34744
Richard D. Brown
Phone: 407-847-2179
6. Rees Jones, Inc. Professional $290,000
55 South Park Street Services
Montclair, New Jersey 07042
Cathy McDonough
Phone: 862-596-7161
Email: calgolfinc@aol.com
7. Rummel Klepper & Kahl, LLP Professional $94,460
700 East Pratt St., Ste. 500 Services
Baltimore, MD 21202
Joe Baan
Phone: 863-670-9361
Email: jbaan@rkk.com
8. Kutak Rock LLP Professional $10,500
P.O. Box 30057 Services
Omaha, NE 68103
Jere L. Earlywine
Phone: 850-528-6152
Email: Jere.earlywine@kutakrock.com
BETANXT INC: S&P Alters Outlook to Negative, Affirms 'B-' ICR
-------------------------------------------------------------
S&P Global Ratings revised its outlook on New York-based integrated
self-clearing wealth management software platform provider BetaNXT
Inc. to negative. At the same time, S&P affirmed the 'B-' issuer
credit rating and its 'B-' issue-level rating on its senior secured
debt.
The negative outlook reflects S&P's expectation that BetaNXT won't
generate positive free operating cash flow in 2025. It's also
indicates the risk of a lower rating if the company's performance
doesn't improve as it expects, which would make it difficult for it
to meet its debt obligations.
BetaNXT is expected to have cash-flow deficits this year, and it
continues to rely on its revolver, which will become a current
liability in June 2026. The company also has a sizable deferred
consideration payment due to its former owner.
That said, BetaNXT may receive financial support from its parent
entity, which in turn is funded from its financial sponsors
(Clearlake and Motive Partners) to fund its payment to its former
owner next year. With that support, and expectations for growth and
profitability to continue in the coming quarters, we believe the
company has the capacity to continue to meet its debt obligations
under our base case.
S&P said, "We believe BetaNXT's business position is modestly
improving. The company successfully renewed most large contracts
for its Beta business (75% of pro forma revenue) in 2024 and 2025.
It also secured multi-year renewals with several of its top
clients--including Axos, Baird, Janney, Stifel, and Vanguard--with
an average renewal term of seven years. In addition, it
auto-renewed its contract with LPL by one year while negotiations
take place for a longer-term contract. While BetaNXT does have
customer concentration, with its top eight customers contributing
more than 90% of Beta revenues, seven of these clients have renewed
long-term contracts. Moreover, as BetaNXT renews contracts, it's
shifting more of its revenue base to a recurring subscription
model; at the end of 2025, 62% of revenue is expected to be
recurring subscriptions, with another 32% recurring volumes.
BetaNXT also benefits when volume trading is in excess of
subscription-based volume tiers.
"However, these improvements have yet to produce better cash-flow
generation. As a result, we expect the company to remain reliant on
its revolving credit facility, $40 million of which was drawn at
the end of the third quarter. Over the past few years, BetaNXT has
been hindered by slower sales growth, high separation costs, and a
significant interest burden. These factors have led to an inability
to generate annual positive free cash flow. We expect free cash
flow to remain negative in 2025 despite improvements in revenue and
margins." Management has outlined a plan to turn free cash flow
positive in 2026, mainly by reducing capital expenditures to
maintenance levels and maintaining the strong EBITDA margins it's
reported through 2025.
BetaNXT's sales teams are now better suited to pursue growth. S&P
said, "As BetaNXT has secured contract renewals with most key
customers, and as the industry has transitioned to T+1 settlements,
we expect the focus to return to growth over just maintaining
existing revenue. The company's announcements of several new
products and a partnership with Fi-Tek in the first half of the
year reinforce growth prospects ahead. We anticipate BetaNXT's
sales teams will pursue growth by cross-selling add-on services
from affiliates within and outside of BetaNXT's credit group to
existing customers, including Delta Data's mutual fund
subaccounting, fund management, trading, and regulatory features;
Maxit's cost basis and tax reporting solution (which accounts for
7% of BetaNXT's annual revenue); and Mediant's digital investor
communication solution."
Several of Beta's largest customers are consolidating or acquiring
registered investment advisors, which is expected to generate
increased volume on the Beta platform. S&P said, "We also envision
Maxit and Mediant solutions creating opportunities with digital
brokers seeking modern cloud-based solutions, paving the way for
new customer acquisitions and improved diversification as sales
efforts gain momentum. Looking ahead, we expect growth capex and
capitalized development costs to decline, further benefiting
BetaNXT's S&P Global Ratings-adjusted EBITDA margin in 2026."
Achieving growth will be key to capital structure sustainability.
Beyond liquidity continuing to tighten due to a continued reliance
on the revolving credit facility, the company is also grappling
with a deferred consideration payment to its former owner, LSEG, in
September 2026. The total consideration could reach upwards of $35
million, which would exhaust all of the company's remaining
liquidity. However, to address and help settle the LSEG liability,
the company secured a revenue-support agreement in September with
its parent entity, Buckhorn Parent Inc. (Buckhorn), for up to a $30
million cash contribution which expires March 2027.
This agreement helps mitigate the risk of receiving a going-concern
opinion from the company's auditors, which could trigger an event
of default. S&P said, "However, we're still not forecasting
sufficient cash-flow improvement over the next few quarters for the
company to internally repay its revolving debt before it becomes a
current liability in June 2026. Therefore, we believe that
demonstrating improved operating momentum, which the company
anticipates, will be a key consideration for the company's
prospects of refinancing or extending the maturity of its revolving
credit facility."
The negative outlook reflects the expectation that BetaNXT won't
generate free operating cash flow in 2025. It indicates the risk of
a lower rating if the company's performance doesn't improve as we
expect, which would make it difficult for it to meet its debt
obligations.
S&P could lower its rating on BetaNXT if S&P views its capital
structure as unsustainable. This could occur if:
-- A persistent cash-flow deficit diminishes its liquidity; or
-- Its has difficulty renewing its revolving credit facility; or
-- The company's revenue-support agreement fails to provide
sufficient liquidity to address its liability with LSEG; or
-- S&P sees an increasing probability of a covenant breach under
the company's debt facilities.
S&P could revise the outlook back to stable if the company's
revolver is successfully renewed, its liability with LSEG is
settled, and free operating cash flows are expected to remain
positive.
BH DOWNTOWN: Seeks to Hire Concierge Auctions LLC as Auctioneer
---------------------------------------------------------------
BH Downtown Miami, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to hire Concierge
Auctions, LLC as auctioneer.
The firm will market and sell the commercial property owned by 340
located at 340 Biscayne Boulevard in Miami, Florida.
The auctioneer will be compensated from a buyer's premium that will
be paid by the buyer in an amount equal to 6 percent of the gross
sale proceeds received from a sale.
Concierge will be entitled to reimbursement of its reasonable
out-of-pocket, documented third party expenses incurred in
marketing the Property and conducting the auction.
Concierge Auctions is a "disinterested person" as that term is
defined in the Bankruptcy Code and does not hold or represent an
interest adverse to the Debtor or the Debtor's estate, according to
court filings.
The firm can be reached through:
Chad Roffers
Concierge Auctions, LLC
228 Park Avenue S, Suite 70835
New York, NY 10003
Tel: (646) 745-7598
Email: chad.roffers@conciergeauctions.com
About BH Downtown Miami
BH Downtown Miami, LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-23028) on Dec. 13,
2024. In its petition, the Debtor reported estimated assets between
$100 million and $500 million and estimated liabilities between $50
million and $100 million.
Judge Laurel M. Isicoff oversees the case.
The Debtor tapped Pardo Jackson Gainsburg & Shelowitz, PL as
counsel and Gould & Pakter Associates, LLC as financial expert.
BOOTLEGGER'S BREWERY: Seeks Subchapter V Bankruptcy in California
-----------------------------------------------------------------
On October 15, 2025, Bootlegger's Brewery LLC filed Chapter 11
protection in the Central District of California. According to
court filing, the Debtor reports $1,865,389 in debt owed to 1 and
49 creditors. The petition states funds will be available to
unsecured creditors.
About Bootlegger's Brewery LLC
Bootlegger's Brewery LLC, in Fullerton, California, produces a
range of craft beers, including year-round and seasonal varieties.
Founded in 2008, it serves both on-site visitors and local
consumers in North Orange County. Its operations focus on brewing,
tastings, and community engagement within the alcoholic beverages
industry.
Bootlegger's Brewery LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
Case No. 25-12907) on October 15, 2025. In its petition, the Debtor
reports total assets of $156,358 and total liabilities of
$1,865,389.
Honorable Bankruptcy Judge Mark D. Houle handles the case.
The Debtor is represented by Andrew S. Bisom, Esq. of Bisom Law
Group.
BRIDGE TO ADULTHOOD: Hires Kaplan Johnson Abate as Legal Counsel
----------------------------------------------------------------
Bridge To Adulthood, L.L.C. seeks approval from the U.S. Bankruptcy
Court for the Western District of Kentucky, Bowling Green Division,
to employ Kaplan Johnson Abate & Bird LLP as its legal counsel in
its Chapter 11 case.
The firm will provide these services:
(a) give legal advice with respect to the Debtor's powers and
duties as Debtor-in-Possession in the continued management of its
financial affairs and estate assets;
(b) take all necessary action to protect and preserve the Debtor's
estate, including the prosecution of actions on behalf of the
Debtor, the defense of any actions commenced against the Debtor,
negotiations concerning all litigation in which the Debtor is
involved, and objecting to claims filed against the Debtor's
estate;
(c) prepare on behalf of the Debtor all necessary motions,
answers, orders, reports, and other legal papers in connection with
the administration of the Debtor's estate; and
(d) perform any and all other legal services for the Debtor in
connection with this Chapter 11 case and the formulation and
implementation of the Debtor's Chapter 11 plan.
KJAB has informed the Debtor that it:
(a) has no connection with the Debtor, its creditors, or other
parties in interest in this case, other than as disclosed in the
Verified Statement of J. Gabriel Dennery;
(b) does not hold or represent any interest adverse to the
Debtor's estate; and
(c) is a "disinterested person" as defined by Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Charity S. Bird, Esq.
Tyler R. Yeager, Esq.
J. Gabriel Dennery, Esq.
KAPLAN JOHNSON ABATE & BIRD LLP
710 W. Main St., 4th Floor
Louisville, KY 40202
Telephone: (502) 416-1630
E-mail: cbird@kaplanjohnsonlaw.com
tyeager@kaplanjohnsonlaw.com
gdennery@kaplanjohnsonlaw.com
About Bridge to Adulthood LLC
Bridge to Adulthood LLC provides residential and community-based
support services for individuals with intellectual and
developmental disabilities in Kentucky. The Company participates in
state Medicaid waiver programs, including the Michelle P. Waiver
for children and teenagers and the Supports for Community Living
program for adults, offering alternatives to institutional care.
Its services include residential care, in-home and community
support, and animal therapy, with operations centered at its
facility in Allensville.
Bridge to Adulthood LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Ky. Case No. 25-10810) on September
23, 2025. In its petition, the Debtor reports estimated estimated
assets between $100,000 and $500,000 and estimated liabilities
between $1 million and $10 million.
Honorable Bankruptcy Judge Joan A. Lloyd handles the case.
The Debtor is represented by Charity S. Bird, Esq. of KAPLAN
JOHNSON ABATE & BIRD LLP.
BRONX CAR: Nat Wasserstein Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 2 appointed Nat Wasserstein, Esq., at
Lindenwood Associates, LLC as Subchapter V trustee for Bronx Car
Park Systems, Inc.
Mr. Wasserstein will be paid an hourly fee of $510 for his services
as Subchapter V trustee and will be reimbursed for work related
expenses incurred.
Mr. Wasserstein declared that he is a disinterested person
according to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Nat Wasserstein, Esq.
Lindenwood Associates, LLC
328 North Broadway, 2nd Floor
Upper Nyack, New York 10960
Telephone: (845) 398-9825
Facsimile: (212) 208-4436
Email: nat@lindenwoodassociates.com
About Bronx Car Park Systems Inc.
Bronx Car Park Systems, Inc. operates a parking facility at 2425
Sedgwick Avenue in Bronx, New York, providing vehicle storage and
management services.
Bronx Car Park Systems filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
25-12249) on October 10, 2025, with $422,626 in assets and
$1,740,715 in liabilities. Wendy Ull, president of Bronx Car Park
Systems, signed the petition.
Judge David S. Jones presides over the case.
Douglas Pick, Esq., at Pick & Zabicki, LLP represents the Debtor as
legal counsel.
CAPE FEAR: Seeks to Hire Titan Advisors LLC as Accountant
---------------------------------------------------------
Cape Fear Discount Drug LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of North Carolina to hire Titan
Advisors, LLC as accountant.
The accountant will review bookkeeping, advise the Debtor, as
needed, and prepare monthly and annual financial reports.
Titan Advisors, LLC will receive a flat fee of $1,500 per month for
the accounting services.
As disclosed in the court filings, Titan Advisors is disinterested
within the meaning of Sec. 327(a) of the Bankruptcy Code and
further states that no outstanding indebtedness is currently owed
to it by the Debtor.
The firm can be reached through:
Nicholas Caltabiano
Titan Advisors, LLC
750 Washington Blvd 10th floor
Stamford, CT 06901
Phone: (203) 327-8600
About Cape Fear Discount Drug LLC
Cape Fear Discount Drug LLC operates a community-focused pharmacy
providing prescription dispensing, immunizations, medication
therapy management, and over-the-counter products. The pharmacy is
part of the Good Neighbor Pharmacy network and serves local
residents with programs including family vitamins and child safety
initiatives.
Cape Fear Discount Drug LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 25-03693) on
September 23, 2025. In its petition, the Debtor reports estimated
assets between $100,000 and $500,000 and estimated liabilities
between $1 million and $10 million.
Honorable Bankruptcy Judge David M. Warren handles the case.
The Debtor is represented by Laurie B. Biggs, Esq. of BIGGS LAW
FIRM PLLC.
CEDAR VALLEY: Deadline for Panel Questionnaires Set for Oct. 24
---------------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy cases of Cedar Valley
Cypress, et al.
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/ubppzwdc 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, October 24, 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 Cedar Valley
Cedar Valley Cypress TX LLC, Cypress Operating LLC, Cypress Skilled
Nursing LLC, and Cedar Valley Cypress LLC form a network of
for-profit healthcare companies that own and manage skilled nursing
and rehabilitation centers. The group oversees facilities such as
Cedar Valley Nursing & Rehabilitation Center in Cedartown, Georgia,
and operates through related entities providing administrative and
clinical support. The companies share common ownership under the
Cypress structure, which manages nursing home operations in Texas,
New York, and Georgia.
Cedar Valley Cypress sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N. D. Tex. Case No. 25-34017) on Oct. 13,
2025. In its petition, Cedar Valley Cypress reported estimated
assets and liabilities between $50,000 to $100,000 million each.
The petitions were signed by Dianne Patterson as manager.
Hon. Stacey G Jernigan presides over the cases
The Debtors are represented by Gray Reed. The Debtors' CRO Provider
is Ankura Consulting Group.
CENTRAL JUNCTION: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Central Junction, LLC
2601 Central Avenue
Memphis TN 38104
Business Description: Central Junction, LLC is classified as a
single-asset real estate debtor under
Section 101(51) of the U.S. Bankruptcy Code.
Chapter 11 Petition Date: October 15, 2025
Court: United States Bankruptcy Court
Western District Tennessee
Case No.: 25-25292
Judge: Hon. Denise E Barnett
Debtor's Counsel: Marcus D. Ward, Esq.
MARCUS D. WARD, PLLC
3385 Airways Blvd, Suite #229
Memphis TN 38116
Tel: (901) 661-1811
Email: MDWard@mdwpllc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Marion Threatt as member.
A list of the Debtor's 20 largest unsecured creditors was not
provided alongside the petition.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/O3GLJMY/Central_Junction_LLC__tnwbke-25-25292__0001.0.pdf?mcid=tGE4TAMA
CHF MERRIMACK: S&P Affirms 'BB' LT Rating on Housing Revenue Bonds
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term rating on
Massachusetts Development Finance Agency's series 2024A and 2024B
student housing revenue bonds, issued for CHF Merrimack Inc.
The outlook is stable.
S&P said, "We analyzed the project's environmental, social, and
governance factors related to its market position and financial
performance. We view these factors as neutral in our credit rating
analysis.
"The stable outlook reflects our expectation that, during the
one-year outlook period, construction will progress on time and
within budget, and that the project will open with very high
occupancy for the fall 2026 semester.
"We could consider a negative rating action if there are cost
overruns or construction delays that inhibit the project's ability
to open on time and within budget. We could also consider a
negative rating action if occupancy is materially weaker than
projected, pressuring the project's ability to meet covenanted
coverage.
"We do not expect to raise the rating or revise the outlook to
positive during the one-year outlook period because the project
will be under construction. Beyond the outlook period, an
established trend of strong occupancy and DSC over 1.2x could lead
to a positive rating action."
CHIARELLA HOLDINGS: Self-Employment Income to Fund Plan
-------------------------------------------------------
Chiarella Holdings, LLC filed with the U.S. Bankruptcy Court for
the Central District of California a Disclosure Statement
describing Chapter 11 Plan dated October 9, 2025.
The Debtor is a Wyoming Domestic Limited Liability Company formed
on January 23, 2019 by Guy Chiarella. The Debtor was formed for the
sole purpose of owning real property located at 5291 Sunset Lane,
Yorba Linda, CA 92886 (the "Property").
Currently, Debtor's sole member Giovanni Chiarella resides in the
Property with his family, which consists of his wife and daughter
(hereinafter "Chiarella"). The Property does not collect any rental
income, it does not operate a business, nor does it generate any
income by any means.
Chiarella purchased the Property from his uncle Guy Chiarella, in
2019. Guy Chiarella had a reverse mortgage of about $90,000.00 that
needed to be paid off by Chiarella before buying the house. After
that Chiarella signed a deed of trust and note in favor of The Liz
and Guy J Chiarella Family Trust (the "Chiarella Trust"). With the
help of his uncle Guy, Chiarella obtained financing from Nathan
Dayood to make these repairs to the Property.
However, due to a decrease in his self-employment income he fell
behind on property taxes. He received a notice from the Trustee of
the Chiarella Trust instructing him to bring the property taxes
current before any further action would be taken. Even after
Chiarella took these steps to take care of the property taxes, he
was served with a Notice of Default ("NOD") by the Chiarella Trust.
The NOD required Debtor to pay $77,000.00 in property taxes in
order to stop foreclosure proceedings.
However, Chiarella was unable to raise those funds, and the
Chiarella Trust would not allow an extension of time for Chiarella
to try to come up with $77,000.000. Chiarella realized that the
second lienholder was determined to press forward with a
foreclosure sale, so he elected to pursue a chapter 11 case to
avoid losing the property, and to reorganize its debts while
preserving equity value.
Since the Debtor produces no income, Chiarella will continue to
personally provide the necessary capital to fund the Debtor's
ongoing obligations and to make all payments required under the
Plan.
General unsecured claims (Class 3) are unsecured claims not
entitled to priority under Section 507(a). Debtor does not believe
that any such general unsecured claims exist in this case.
The Debtor does not generate an income. Chiarella will fund the
Estate with his own personal funds so that the Debtor can meet its
monthly obligations and requirements under the Plan. The
Projections along with Chiarella's self employment income from 2024
demonstrate that the Debtor's Plan is feasible. The Projection
incorporates all sources of revenue for Chiarella and the Debtor's
expenses, including the Plan payments.
The Plan will be funded by Chiarella from his self-employment
income that he generates from operating his consulting business for
public safety and emergency medical services, and the sales of
custom built ambulances.
A full-text copy of the Disclosure Statement dated October 9, 2025
is available at https://urlcurt.com/u?l=yYG89E from
PacerMonitor.com at no charge.
The Debtor's Counsel:
Krystina T. Tran, Esq.
LAW OFFICES OF KRYSTINA T TRAN
17011 Beach Blvd, Suite 830
Huntington Beach, CA 92647
Tel: (949) 797-9090
Fax: (949) 393-3999
E-mail: ktran@ktranlaw.com
About Chiarella Holdings LLC
Chiarella Holdings LLC is a single-asset real estate entity that
owns a residential property at 5291 Sunset Lane in Yorba Linda,
California, with a comparable market value of approximately $1.53
million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-11901) on July 11,
2025, with $1,528,863 in assets and $1,140,000 in liabilities.
Giovanni Chiarella, president, signed the petition.
Judge Scott C. Clarkson presides over the case.
Krystina T. Tran, Esq. at the LAW OFFICES OF KRYSTINA T TRAN
represents the Debtor as legal counsel.
CHIARELLA HOLDINGS: Taps Law Offices of Krystina T. Tran as Counsel
-------------------------------------------------------------------
Chiarella Holdings LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Krystina T.
Tran, Esq. of the Law Offices of Krystina T Tran as general
bankruptcy counsel in its Chapter 11 case.
Ms. Tran will provide these services:
(a) provide legal advice and representation to the Debtor in
connection with the Chapter 11 case;
(b) prepare and file all necessary motions, applications, and
pleadings;
(c) attend hearings and represent the Debtor before the
Bankruptcy Court;
(d) assist in the formulation and confirmation of a Chapter 11
plan;
(e) negotiate with creditors and parties in interest; and
(f) perform such other legal services as may be required in
connection with the Chapter 11 proceedings.
Ms. Tran wil receive compensation at the rate of $450 per hour, and
the Debtor has agreed to pay a retainer of $10,000, subject to
court approval.
According to court filings, the Law Offices of Krystina T Tran is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Krystina T. Tran, Esq.
Law Offices of Krystina T Tran
17011 Beach Blvd, Suite 900
Huntington Beach, CA 92647
Telephone: (949) 797-9090
Facsimile: (949) 393-4999
About Chiarella Holdings LLC
Chiarella Holdings LLC is a single asset real estate company based
in Yorba Linda, California.
Chiarella Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11901) on July 11,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Scott C. Clarkson handles the case.
The Debtors are represented by Krystina T. Tran, Esq. at Law
Offices Of Krystina T Tran.
CHOBANI GLOBAL: S&P Alters Outlook to Positive, Affirms 'B+' ICR
----------------------------------------------------------------
S&P Global Ratings affirmed all ratings, including its 'B' issuer
credit rating on Greek yogurt producer Chobani Global Holdings LLC
and revised the outlook to positive from stable.
S&P said, "We also assigned a 'B+' issue-level rating with a
recovery rating of '2' to the proposed $1,350 million Term Loan B,
reflecting our expectation for substantial (70%-90%) recovery in
the event of a simulated default. We will withdraw our ratings on
the company's existing senior secured term loan ratings upon the
close of the transaction.
"The positive outlook reflects our expectation for continued
deleveraging, sustained profitability growth, and strengthening of
the company's competitive advantage."
Chobani is proposing a refinancing of its existing term loans and
upsizing by $350 million to take out minority preferred shares by
Healthcare of Ontario Pension Plan (HOOPP). S&P views this
transaction as generally leverage neutral because S&P Global
Ratings treats the HOOPP preferred equity as debt.
The company also announced the completion of a $650 million primary
equity issuance for capex purposes, which S&P has not factored into
our rating.
S&P said, "The company's operating performance continues to exceed
our expectations, including our expectation for a second
consecutive year of EBITDA growth above 15%.
"The positive outlook reflects our expectation for continued
deleveraging following the proposed leverage neutral transaction.
We project deleveraging will occur through continued EBITDA growth.
Pro forma leverage is 5.1x, which is a meaningful improvement
compared to 6.3x as of fiscal year-end Dec 31, 2024. Year-to-date
performance has exceeded our expectations, reflecting continued
above-industry average sales growth and margin expansion due to
increased productivity and overall economies of scale. Furthermore,
net sales increased by 28% to $1.84 billion in the first half of
2025 from $1.44 billion in the first half of 2024, primarily
because of volume growth across all product lines.
"We now forecast a year-over-year increase of 28.5% in sales and
EBITDA margin of 20% in 2025, which we expect will lead to leverage
approaching 4.2x by fiscal year-end 2025. The strong growth has
been across the majority of its product portfolio, but particularly
in the high protein product categories that are far exceeding total
yogurt category growth rates. We expect recent accelerated growth
rates will taper off from current levels, and we project sales will
grow by 10%, with EBITDA margins remaining flat at near 20% in
fiscal 2026. We believe this will lead to further deleveraging
closer to 4.0x and could result in an upgrade over the next year to
the extent we also forecast a rebound in free operating cash flow
(FOCF) by then.
"The company's growth strategy will require sizable capital
expenditures (capex), which will weigh on free cash flow generation
over the next two years. We expect capex will reach about $600
million in 2025, rise to $650 million in 2026, and return to $600
million in 2027 as the company invests heavily in capacity
expansion projects. Earlier this year, Chobani announced the $500
million expansion of its Twin Falls manufacturing facility that it
expects will increase production capacity by 50%, as well as its
plans for a $1.2 billion multiyear investment in a new yogurt plant
in Rome, NY. As a result, we do not expect meaningful positive free
or discretionary cash flow over this period, which limits near-term
deleveraging from debt repayment (potential proceeds from company's
equity issuance not withstanding). Despite debt to EBITDA trending
below 5x, we continue to view the company as highly leveraged
because of our forecast for negative FOCF in fiscal 2026, which
should turn positive in 2027 once capex normalizes.
"Chobani's significant earnings growth, successful brand expansion
in adjacent categories, and increasing diversification have led us
to view the business risk profile more favorably. Between 2020 and
2024, Chobani's S&P adjusted EBITDA rose by about 208% through a
combination of market share gains in its core Greek yogurt
category, the expansion of that category at the expense of other
yogurt offerings, diversification into adjacent yogurt offerings
like ready-to-drink, and entering into adjacent categories like
creamers and, to a lesser extent, nondairy milks. Most recently,
the company expanded into high-protein yogurt and yogurt drinks in
addition to acquiring Daily Harvest which expands their offerings
into the frozen category of the supermarkets. We believe the
resulting increase in scale and product breadth has enhanced its
competitive positioning and operating resilience, supporting our
improved view of the company's competitive position and overall
business risk profile.
"The positive outlook reflects the possibility that we will raise
our rating on Chobani over the next 12 months if it sustains the
improvement in its business and financial performance.
"We could revise our outlook back to stable if the company is
unable to execute well on operating performance such that it loses
market share, leading to a deterioration in its revenue and
profit." This could occur if:
-- Capex plans continue to increase such that the company
continues to generate negative FOCF beyond 2026; or
-- The company's financial policy no longer supports leverage
sustained below 5x.
S&P could raise its ratings on Chobani if it lowers and maintains
leverage of less than 5x, and it expects FOCF after fiscal 2026 to
approach $125 million. S&P believes this could occur over the next
year if:
-- The company sustains core revenue growth in at least the
high-single-digit percent area;
-- The company maintains S&P Global Ratings-adjusted EBITDA
margins above 18%; and
-- S&P projects capex will materially decline in fiscal 2027,
enabling a rebound in FOCF consistent with its upgrade trigger.
CLOVERLEAF ELECTRIC: Deborah Fish Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Deborah Fish, Esq.,
managing partner at Allard & Fish, P.C., as Subchapter V trustee
for Cloverleaf Electric, LLC.
Ms. Fish will be paid an hourly fee of $400 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Fish declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Deborah L. Fish, Esq.
Allard & Fish, P.C.
1001 Woodward Ave., Ste. 850
Detroit, MI 48226
Phone: (313) 961-6141
Email: dfish@allardfishpc.com
About Cloverleaf Electric LLC
Cloverleaf Electric, LLC provides residential, commercial, and
industrial electrical contracting services across Michigan. It
installs, repairs, and maintains electrical systems for homes,
businesses, and manufacturing facilities, covering wiring,
lighting, control systems, and breaker panels. Founded in 2011 and
based in Troy, Michigan, the company serves clients across the
region.
Cloverleaf Electric filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-50310) on
October 14, 2025, with $100,000 to $500,000 in assets and $1
million to $10 million in liabilities. Shawn Hosner, sole member
and manager, signed the petition.
Judge Mark A. Randon presides over the case.
Mark H. Shapiro, Esq., at Steinberg Shapiro & Clark represents the
Debtor as legal counsel.
COMMERCIAL METALS: S&P Affirms 'BB+' ICR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings affirmed its ratings on Texas-based Commercial
Metals Co. (CMC), including its 'BB+' issuer and issue-level
ratings.
The stable outlook reflects S&P's expectation that, following the
close of the acquisitions, leverage will increase above 3x and
trend toward 2.5x by the end of fiscal 2026 (year-end August) and
toward 2x by fiscal 2027 as it integrates operations.
CMC leverage will increase following the recently announced
acquisitions of Foley Products Co. and Concrete Pipe & Precast
(CP&P). However, S&P expects it to decline toward 2.5x over the
next 12 months.
The acquisitions immediately establish CMC's foothold in the
precast concrete market, expanding its nonsteel product portfolio
with complementary offerings and increasing its product diversity
and scale in the construction market. Still, its product
concentration and relative size versus other steel peers are
considerations for our rating.
S&P said, "We believe strong cash flow should support deleveraging
over the next 1-2 years. We expect CMC's acquisitions of Foley and
CP&P will push leverage above 3x at close, consuming much of the
ratio cushion at the current rating. CMC will use debt to fund the
$1.84 billion purchase price of Foley Products after using cash
proceeds for the $675 million CP&P acquisition in September 2025.
This will increase S&P Global Ratings-adjusted debt to $3.2
billion-$3.3 billion upon completion from about $1.1 billion in
fiscal 2025. However, we believe deleveraging will follow quickly
from incremental earnings and cash flow generation and anticipate
adjusted leverage to trend toward 2.5x by the end of fiscal 2026
and 2x by end of fiscal 2027. CMC has secured bridge loan financing
for the acquisition that we expect it will replace with permanent
debt in the coming months. Over the last several years, CMC has
built balance-sheet flexibility for these inorganic opportunities
and we believe it has capacity to add this additional debt to its
balance sheet. It has kept debt stable and leverage below 1x over
the past three years, while its steel earnings have increased from
new greenfield projects, acquisitions, and healthy steel markets.
"We expect CMC to return to its financial policy target of 2x net
leverage through the cycle. The company has deleveraged after
accretive acquisitions (notably after acquiring rebar assets from
Gerdau in 2018). We forecast about $350-400 million of free
operating cash flow in fiscal 2026 to support debt reduction. We
net cash for our leverage calculations but deem about $362 million
as unavailable for debt repayment as CMC pursues appeals related to
the Pacific Steel Group lawsuit judgment in late 2024."
CMC gains an immediate foothold in the higher-margin precast
concrete market. Entering this business could complement its steel
business in key end markets--infrastructure, nonresidential, and
residential construction. Both Foley and CP&P have limited overlap
across the U.S. Mid-Atlantic and Southeast regions that align with
CMC's steelmaking footprint. The combination could provide
opportunities for steel sourcing benefits, commercial coordination,
and logistical optimization. Precast concrete and CMC's emerging
business group (which includes Tensar's ground stabilization and
soil reinforcement products) will reflect roughly a third of CMC's
pro forma EBITDA. Building materials, specifically concrete and
precast concrete products, have less volatile pricing and less
volatile input costs than steel that could modestly expand margins
and be a more stable EBITDA segment. S&P forecasts EBITDA of $1.1
billion-$1.2 billion in fiscal 2026, which includes about $950
million of EBITDA from CMC's steel operations.
These acquisitions could strengthen CMC's product diversity and
scale. Its concentration and relative size among steel peers
remains a consideration for our rating. S&P said, "We consider CMC
as a smaller player against higher-rated Nucor, Steel Dynamics, and
Gerdau. CMC has higher concentration from its majority exposure to
the construction, rebar, and merchant bar markets. We believe the
Foley and CP&P acquisitions could mitigate some of this risk by
creating greater product diversification, increased scale, and
higher EBITDA of a more stable, higher-margin segment. We would
look for continued robust return on capital and modest margin
expansion as CMC executes the integration as part of its ongoing
Transform, Advance, and Grow program (TAG) that targets cost
improvement and incremental growth initiatives."
S&P said, "We may also continue to look for sustained financial
strength through the steel cycle and a supportive financial policy.
We believe the acquisitions are consistent with steel peers
investing in ancillary products to create pull-through internal
steel consumption, greater commercial cross-selling opportunities,
and diversified earnings streams.
"We expect resilient end markets, increasing steel volumes, and
strong rebar prices. Rebar imports have been quick to respond to
the steel tariffs, with recent spot prices reaching $875 per ton
from $720 per ton a year ago. CMC should see the benefit from
higher prices and softening scrap prices for projects in its
downstream products as well as its rebar, merchant bar, and steel
products, supporting our forecast." CMC, Nucor, and others are
bringing new rebar capacity to market over the next 12-18 months.
CMC is ramping up a new micro mill in Arizona that will produce
350,000 tons of rebar and 150,000 tons of merchant bar and
continuing construction of a 500,000-ton micro mill in West
Virginia. Demand from highway, infrastructure, data center, and
liquified natural gas capacity are all expanding. Coupled with
improved market conditions to relieve pent-up demand, this could
absorb the additional rebar tons coming to market from several
projects in 2026.
The construction industry faces risks such as project delays or
cancellations, skilled labor availability and wage increases, and
higher input costs and tariffs. Backlogs of construction projects
continue to build even as uncertainties persist and the impact on
economic activity could result in sponsors delaying project starts,
which could affect CMC if projects are pushed out. That said, S&P
Global Ratings expects mid- to high-single-digit percent revenue
growth among U.S. engineering and construction issuers this year,
supported by record backlogs and energy transition momentum.
The stable outlook on CMC reflects S&P's expectation that,
following close of the Foley and CP&P acquisitions, leverage will
increase above 3x but trend toward 2.5x by the end of fiscal 2026
and 2x by fiscal 2027 as it integrates operations.
S&P could lower its rating on CMC if S&P expects it to sustain
adjusted debt to EBITDA above 3x. This could occur if:
-- Significant problems arise integrating its new acquisitions or
with any of its assets, or depressed steel prices stem from
prolonged weak end-market demand;
-- CMC pursues additional debt-financed acquisitions while
trailing leverage from the Foley and CP&P acquisitions remains
elevated; or
-- It issues debt for shareholder returns or for significant
capital expenditure beyond S&P's base case.
S&P could raise its rating on CMC over the next 12 to 24 months
if:
-- S&P believes the acquisitions strengthen CMC's business by
increasing scale and diversification and sustaining robust returns
on capital and modest margin expansion; and
-- Adjusted debt to EBITDA generally near or below 2x, coupled
with continued financial policy clarity.
CORINTH AUTUMN: Trustee Taps Whitley Penn LLP as Tax Accountant
---------------------------------------------------------------
Stuart Walker, the Trustee for Corinth Autumn Oaks, L.P., seeks
approval from the U.S. Bankruptcy Court for the Northern District
of Texas to employ Whitley Penn LLP as tax accountant.
Whitley Penn's services include:
(a) preparation of the Debtor's federal partnership tax return
(Form 1065); and
(b) preparation of the Debtor's Texas franchise tax return
(Form 05-158).
Whitley Penn estimates that its fees will be $5,500 for the
preparation of the Dec. 31, 2024 tax returns based on its current
understanding of the Debtor's operations.
As disclosed in the court filings, Whitley Penn is a "disinterested
person" within the meaning of section 101(14) of the Bankruptcy
Code, does not hold or represent an interest adverse to the
Debtor's estate, and has no material connection to the Debtor, its
creditors, or their related parties.
The firm can be reached through:
Shea Kracheck, Esq.
Whitley Penn LLP
5908 Headquarters Dr Suite 300
Plano, TX 75024
Tel: (469) 587-0560
Email: shea.kracheck@whitleypenn.com
About Corinth Autumn Oaks L.P.
Corinth Autumn Oaks L.P. is a senior care community and a member of
the National Association of Activity Professionals. As trained and
specialized caregivers, Corinth Autumn Oaks provides personalized
assistance in activities of daily living, supportive services, and
compassionate care to its assisted living residents.
Creditor Corinth AO GP, LLC filed involuntary Chapter 11 petition
against Corinth Autumn Oaks (Bankr. N.D. Texas Case No. 24-44464)
on December 2, 2024. The creditor is represented by:
Gregory W. Mitchell, Esq.
Freeman Law, PLLC
7011 Main Street
Frisco TX 75034
Tel: (214) 924-3124
Email: gmitchell@freemanlaw.com
Judge Edward L. Morris oversees the case.
CORPORATE AIR: Unsecured Creditors to Get Share of GUC Fund
-----------------------------------------------------------
Corporate Air, LLC and its related debtors filed with the U.S.
Bankruptcy Court for the District of Delaware a Disclosure
Statement describing Joint Chapter 11 Plan dated October 9, 2025.
The Debtors are an FBO located at the Allegheny County Airport
(AGC) serving both general and business aviation clients across the
region. The Debtors provide a comprehensive suite of aviation
services, including aircraft management and charter operations,
hangar rental, fuel services, maintenance, and flight training.
As contemplated by the Plan and the Restructuring Support
Agreement, the Debtors believe that a going-concern reorganization
of the Debtors is in the best interest of all creditors and will
maximize the value of the estates for all creditors.
The Debtors' restructuring and conclusion of the chapter 11 cases
will be implemented through the Plan. Confirmation of the Plan will
effectuate the transfer of substantially all of Debtors' assets to
Vantage AGC LLC ("Vantage" or the "Sponsor"), a well-capitalized,
industry leading fixed base operator ("FBO") that is familiar with
the Debtors' business operations. The Plan will also deleverage the
Debtors' balance sheet and position the Reorganized Debtors for
future success, which will benefit all stakeholders, including
vendors, employees, creditors, and Allegheny County.
On the Effective Date, the Debtors shall (i) consummate the Plan
and, among other things, the Acquired Assets, as set forth and
defined in the Asset Purchase Agreement, shall be transferred to
and vest in the Sponsor free and clear of all Liens, Claims,
charges, or other encumbrances pursuant to the terms of the Asset
Purchase Agreement, Confirmation Order, Plan, and Restructuring
Support Agreement, as applicable; and (ii) enter into any
transaction and shall take any actions as may be necessary or
appropriate to effect a corporate restructuring of their respective
businesses or a corporate restructuring of the overall corporate
structure of the Debtors on the terms set forth in the Plan, the
Restructuring Support Agreement, and the Restructuring Term Sheet,
including, as applicable, the consummation of the Plan, acquisition
of the Acquired Assets, issuance of New Common Equity, transfer of
the FAA Seller Equity, issuance of all certificates and other
documents required to be issued pursuant to the Plan, one or more
intercompany mergers, consolidations, amalgamations, arrangements,
continuances, restructurings, conversions, dispositions,
dissolutions, transfers, liquidations, spinoffs, intercompany
sales, purchases, or other corporate transactions (collectively,
the "Restructuring Transactions").
Specifically, under the terms of the Plan, Holders of Claims and
Interests will receive the following treatment in full and final
satisfaction, compromise, settlement, release, and discharge of,
and in exchange for, such Holders' Claims and Interests:
* Each such Holder of an Allowed DIP Claim shall receive its
Pro Rata share of New Common Equity, the FAA Seller Equity, and the
other Acquired Assets as set forth in the Asset Purchase Agreement,
including, but not limited to, the Aircraft, the Ground Leases, the
Inventory, and the Assumed Contracts (as defined in the Asset
Purchase Agreement, as applicable).
* Secured Tax Claims, Other Secured Claims, Other Priority
Claims, Huntington Secured Claim, and SBA Secured Claim will be
paid in full, in cash on the Effective Date or otherwise provided
treatment as to render such Claims unimpaired.
* The Vantage Bridge Secured Claim shall receive, at the
option of the Sponsor, the remaining New Common Equity or Cash
equal in an amount to such New Common Equity.
* Holders of General Unsecured Claims will receive their Pro
Rata share of GUC Fund, provided that the Class votes in favor of
the Plan. If the Class does not vote in favor of the Plan, holders
of General Unsecured Claims will not receive any recovery under the
Plan.
* Holders of Allowed Administrative Claims, Priority Tax
Claims and Professional Fee Claims will be paid in full, in each
case pursuant to the terms of the Plan.
Class 7 consists of General Unsecured Claims. Except to the extent
that a Holder of an Allowed General Unsecured Claim agrees to less
favorable treatment, on the Effective Date, in full and final
satisfaction, compromise, settlement, release, and discharge of and
in exchange for such Allowed General Unsecured Claim, each Holder
of an Allowed General Unsecured Claim shall receive its Pro Rata
share of the GUC Fund, provided that Class 7 votes in favor of the
Plan. If Class 7 does not vote in favor of the Plan, holders of
General Unsecured Claims will not receive any recovery under the
Plan.
The Plan will be funded by the Reorganized Debtors will fund
Distributions and obligations under the Plan with the remaining
Cash on hand and funds from the DIP Facility and other available
funds of the Reorganized Debtors or Sponsor, in each case
consistent with the Plan, the Restructuring Support Agreement, and
the Restructuring Term Sheet.
A full-text copy of the Disclosure Statement dated October 9, 2025
is available at https://urlcurt.com/u?l=DY2bOy from Omni Agent
Solutions, Inc., claims agent.
Proposed Counsel to the Debtors:
Kevin Douglass, Esq.
BABST, CALLAND, CLEMENTS AND ZOMNIR, P.C.
Two Gateway Center
Pittsburgh PA 15222
Tel: (412) 394-5400
Email: kdouglass@babstcalland.com
-and-
Domenic E. Pacitti, Esq.
Michael W. Yurkewicz, Esq.
KLEHR HARRISON HARVEY BRANZBURG LLP
1835 Market Street, Suite 1400
Philadelphia, Pennsylvania 19103
Tel: (215) 569-2700
Fax: (215) 568-6603
Email: dpacitti@klehr.com
myurkewicz@klehr.com
About Corporate Air LLC
Corporate Air, LLC provide flight training, aircraft rental
(including charter services), maintenance, and Fixed-Base Operator
services in Pennsylvania and Colorado, operating facilities that
support charter flights, pilot training, and related airport
operations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Court (Bankr. W.D. Pa. Lead Case No. 25-22602) on
September 29, 2025. In the petition signed by David Nolletti, chief
restructuring officer, the Debtor disclosed up to $10 million in
assets and up to $50 million in liabilities.
Judge John C. Melaragno oversees the case.
The Debtors tapped Domenic E. Pacitti, Esq., and Michael W.
Yurkewicz, Esq., at Klehr Harrison Harvey Branzburg, LLP as general
bankruptcy counsel; Kevin Douglass, Esq., at Babst, Calland,
Clements and Zomnir, P.C., as co-bankruptcy counsel; Riveron
Management Services, LLC as financial advisor; and Omni Agent
Solutions, Inc. as noticing, claims, and solicitation agent.
DHUKAN GHAR: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Dhukan Ghar LLC
139 Wayne Avenue
Paterson NJ 07502
Business Description: Dhukan Ghar LLC, a single-asset real estate
company under 11 U.S.C. Section 101(51B),
owns and leases the property at 139-141
Wayne Avenue, Paterson, NJ, with a $1.1
million Zillow estimate.
Chapter 11 Petition Date: October 16, 2025
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 25-20999
Debtor's Counsel: David Stevens, Esq.
SCURA, WIGFIELD, HEYER, STEVENS & CAMMAROTA LLP
1599 Hamburg Turnpike
Wayne NJ 07470
Tel: 793-696-8391
Email: dstevens@scura.com
Total Assets: $1,102,128
Total Liabilities: $456,854
The petition was signed by Abdul Ahad as member and authorized
representative.
The Debtor filed a list of its 20 largest unsecured creditors, but
all entries were left blank.
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/D5Q756A/DHUKAN_GHAR_LLC__njbke-25-20999__0001.0.pdf?mcid=tGE4TAMA
DIOCESE OF ALBANY: Reaches $8MM Settlement in Clergy Abuse Case
---------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that the Diocese of Albany
reached an $8 million settlement to resolve the first clergy sex
abuse lawsuit moving forward against the bankrupt Catholic
institution. Plaintiff Michael Harmon alleged he was repeatedly
abused as a child by the diocese's former vice chancellor, with the
agreement reached just before what would have been New York's first
clergy abuse trial.
Attorneys for Harmon said the settlement could shape the outcome of
the diocese's ongoing bankruptcy proceedings, which encompass over
400 abuse claims. The diocese, which has not admitted liability,
filed for Chapter 11 protection last year to manage growing legal
and financial pressures tied to the wave of sex abuse cases,
according to report.
About Roman Catholic Diocese of Albany, New York
The Roman Catholic Diocese of Albany is a religious organization in
Albany, N.Y. It covers 13 counties in Eastern New York, including a
portion of the 14th county. Its Mother Church is the Cathedral of
the Immaculate Conception in the city of Albany.
New York's Child Victims Act, which took effect in August 2019,
temporarily sets aside the usual statute of limitations for
lawsuits to give victims of childhood sexual abuse a year to pursue
even decades-old claims. Hundreds of new lawsuits have been filed
against churches and other institutions since the law took effect
on Aug. 14, 2019.
Facing the financial weight of new sexual misconduct lawsuits, at
least four of the eight Roman Catholic dioceses in the state, has
already sought Chapter 11 protection. The dioceses that have
declared bankruptcy include the Diocese of Rochester and the
Diocese of Rockville Centre on Long Island.
The Catholic Diocese of Albany sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 23-10244) on
March 15, 2023. In the petition filed by Fr. Robert P. Longobucco,
the Debtor estimated assets between $10 million and $50 million and
liabilities between $50 million and $100 million.
Judge Robert E. Littlefield, Jr. oversees the case.
The Debtor tapped Nolan Heller Kauffman, LLP as bankruptcy counsel;
Tobin and Dempf, LLP as special litigation counsel; Keegan Linscott
& Associates, PC as financial advisor; and Bonadio & Co., LLP as
accountant. Donlin, Recano & Company, Inc. is the claims and
noticing agent.
On April 17, 2023, the U.S. Trustee for Region 2 appointed two
separate committees to represent unsecured creditors and tort
claimants in the Debtor's Chapter 11 case.
The unsecured creditors' committee tapped Lemery Greisler, LLC as
legal counsel; Dundon Advisors, LLC as financial advisor; and
OneDigital Investment Advisors, LLC as special investment
consultant.
Stinson, LLP and OneDigital Investment Advisors serve as the tort
committee's legal counsel and special investment consultant,
respectively.
DISCOVERY INSURANCE: A.M. Best Affirms B(Fair) FS Rating
--------------------------------------------------------
AM Best has revised the outlooks to stable from negative and
affirmed the Financial Strength Rating of B (Fair) and the
Long-Term Issuer Credit Rating of "bb" (Fair) of Discovery
Insurance Company (Discovery) (Kinston, NC).
The Credit Ratings (ratings) reflect Discovery's balance sheet
strength, which AM Best assesses as adequate, as well as its
marginal operating performance, limited business profile and
marginal enterprise risk management (ERM).
The revised outlooks to stable reflect Discovery's improved
risk-adjusted capitalization at the strongest level, as measured by
Best's Capital Adequacy Ratio (BCAR), as of the second quarter
2025. The position benefits from a material decline in premium risk
driven by management's strategic initiatives to lower premium risk,
coupled with modest growth in capital. Surplus erosion in prior
years was primarily driven by increased volatility in underwriting
results, largely reflective of higher loss costs primarily due to
inflationary pressures that plagued the industry. Despite
improvement, the capital position remains highly sensitive to
material changes in premium volume.
Discovery's operating performance assessment reflects inconsistent
trends, heavily influenced by elevated underwriting losses in
earlier years. The business profile assessment reflects the
company's product and geographic risk concentration as an insurer
of nonstandard automobile insurance with business written
exclusively in North Carolina. ERM reflects the effectiveness of
Discovery's evolving ERM practices, as evidenced by volatility in
underwriting performance and capital erosion in the last three
years.
DOUBLE HELIX: Taps Claim Counsel PLLC as Special Counsel
--------------------------------------------------------
Double Helix Corporation, d/b/a KDHX Community Media, seeks
approval from the U.S. Bankruptcy Court for the Eastern District of
Missouri to employ The Claim Counsel PLLC as special counsel.
The firm will provide assistance with an insurance claim.
Thefirm's fees are on a contingency fee basis from any proceeds of
recovery for any settlement, judgment, insurance payment, or
appraisal award.
Jason Roberts, a shareholder of The Claim Counsel 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:
Jason Roberts, Esq.
The Claim Counsel PLLC
7901 4th St. N #22550.
St. Petersburg, FL 33702
Tel: (954) 254-9199
Email: admin@theclaimcounsel.com
About Double Helix Corporation
d/b/a KDHX Community Media
Double Helix Corporation, doing business as KDHX Community Media,
is a nonprofit organization based in St. Louis, Missouri, that
operates an independent, non-commercial radio station at 88.1 FM.
The station offers a wide variety of programming, including music,
as well as public affairs shows and educational content. In
addition to its radio broadcasts, KDHX engages with the local
community through events, educational programs, and support for
independent artists.
Double Helix Corporation sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Miss. Case No. 25-40745) on March 10,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Bonnie L. Clair handles the case.
The Debtor is represented by Robert Eggmann, Esq., at CARMODY
MACDONALD P.C., in Saint Louis, Missouri.
DUPLEX AT SLEEPY: Involuntary Chapter 11 Case Summary
-----------------------------------------------------
Alleged Debtor: Duplex At Sleepy Hollow, LLC
520 Newport Center Drive
Suite 480
Newport Beach CA 92660
Business Description: Duplex At Sleepy Hollow, LLC falls under the
single-asset real estate debtor category
defined in 11 U.S.C. Section 101(51B).
Involuntary Chapter
11 Petition Date: October 15, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-12892
Judge: Hon. Mark D Houle
Petitioners' Counsel: David Haberbush, Esq.
HABERBUSH, LLP
444 West Ocean Blvd., Suite 1400
Long Beach, CA 90802
Tel: 562-435-3456
Email: dhaberbush@lbinsolvency.com
A full-text copy of the Involuntary Petition is available for free
on PacerMonitor at:
https://www.pacermonitor.com/view/FB3JW3I/Duplex_At_Sleepy_Hollow_LLC__cacbke-25-12892__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
Specialty DIP LLC $1,500,100
5175 Princess Anne Rd
La Canada CA 91011
Vierergruppe Management Inc. $155,000
1932 E. Deere Ave Suite 150
Santa Ana CA 92705
Coastline Santa Monica Group LLC $30,017,726
520 Newport Center Drive
Suite 480
Newport Beach CA 92660
Moises Camacho $8,760
ECS BRANDS: Committee Taps Michael Best & Friedrich as Counsel
--------------------------------------------------------------
The official committee of unsecured creditors of ECS Brands, Ltd.
filed a supplemental application seeking approval from the U.S.
Bankruptcy Court for the District of Colorado to employ Michael
Best & Friedrich LLP, successor to Allen Vellone Wolf Helfrich &
Factor P.C., as its counsel.
On Sep. 12, 2025, the Committee filed an application to employ
Allen Vellone Wolf Helfrich & Factor P.C. (AVWHF) as counsel for
the Committee with an objection deadline of October 6, 2025
Effective Oct. 1, 2025, AVWHF combined with and became part of
Michael Best & Friedrich LLP (MBF). The attorneys in the Original
Application listed to represent the Committee, including Jeffrey
Weinman and Bailey Pompea, are now affiliated with MBF.
The Committee desires to continue representation with the same
attorneys, now practicing under Michael Best & Friedrich LLP, and
asks the Court to enter an order granting the continued employment
of MBF as counsel for the Committee nunc pro tunc to Oct. 1, 2025.
The firm's services include:
a. consulting with the Debtor and the Office of the United
States Trustee regarding administration of the case;
b. advising the Committee with respect to its rights, powers,
and duties as they relate to the case;
c. investigating the acts, conduct, assets, liabilities, and
financial condition of the Debtor;
d. assisting the Committee in analyzing the Debtor's
pre-petition and post petition relationships with its creditors,
equity interest holders, employees, and other parties in interest;
e. assisting and negotiating on the Committee's behalf in
matters relating to the claims of the Debtor's other creditors;
f. assisting the Committee in preparing pleadings and
applications as may be necessary to further the Committee's
interests and objectives;
g. researching, analyzing, investigating, filing and
prosecuting litigation on behalf of the Committee;
h. representing the Committee at hearings and other
proceedings;
i. reviewing and analyzing applications, orders, statements of
operations, and schedules filed with the Court and advising the
Committee regarding all such materials;
j. aiding and enhancing the Committee's participation in
formulating a plan;
k. assisting the Committee in advising its constituents of the
Committee's decisions, including the collection and filing of
acceptances and rejections to any proposed plan;
l. negotiating and mediating issues related to the value and
payment of claims held by the Committee's constituency; and
m. performing such other legal services as may be required and
are deemed to be in the interest of the Committee.
The firm's hourly rates are:
Jeffrey A. Weinman $650
Bailey Pompea $425
Partners $475 to $725
Associates $350 to $450
Paralegal $195 to $250
The firm requires a retainer in the amount of $10,000.
Jeffrey A. Weinman, Esq., a partner at Michael Best & Friedrich
LLP, disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Jeffrey A. Weinman, Esq.
Bailey Pompea, Esq.
MICHAEL BEST & FRIEDRICH LLP
675 15th Street, Suite 2000
Denver, CO 80202
Tel: (720) 240-9515
Email: jeffrey.weinman@michaelbest.com
About ECS Brands
ECS Brands Ltd. is a privately held company specializing in
hemp-derived products. Founded in 2018, ECS Brands focuses on
manufacturing and supplying bulk hemp extracts, white-label
products, and innovative formulations such as water-soluble nano
emulsions.
ECS Brands Ltd. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Col. Case No. 25-12101) on April 11,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Thomas B. Mcnamara handles the case.
The Debtor is represented by Jenny M.F. Fujii, Esq., at Kutner
Brinen Dickey Riley PC.
EL BURRO: Aaron Cohen Named Subchapter V Trustee
------------------------------------------------
The Acting U.S. Trustee for Region 21 appointed Aaron Cohen, Esq.,
a practicing attorney in Jacksonville, Fla., as Subchapter V
trustee for El Burro Loco Food, Corp.
Mr. Cohen will be paid an hourly fee of $315 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cohen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Aaron R. Cohen, Esq.
P.O. Box 4218
Jacksonville, FL 32201
Tel: (904) 389-7277
Email: aaron@arcohenlaw.com
About El Burro Loco Food Corp.
El Burro Loco Food Corp. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
25-06539) on October 10, 2025, listing up to $50,000 in assets and
between $100,001 and $500,000 in liabilities.
Judge Lori V. Vaughan presides over the case.
Jeffrey Ainsworth, Esq., at Bransonlaw, PLLC represents the Debtor
as bankruptcy counsel.
EVERSTREAM SOLUTIONS: November 11 Deadline Set to Vote on Plan
--------------------------------------------------------------
The Honorable Christopher M. Lopez of the United States Bankruptcy
Court for the Southern District of Texas granted the motion of
Everstream Solutions LLC and its affiliated debtors for entry of an
order:
a) approving the Disclosure Statement as containing adequate
information pursuant to section 1125 of the Bankruptcy Code;
b) approving the Solicitation and Voting Procedures;
c) approving the form and manner of the Confirmation Hearing
Notice;
d) establishing Oct. 14, 2025 as the Voting Record Date;
e) approving the Ballots;
f) approving the Notice of Non-Voting Status;
g) finding that the Solicitation Packages comply with Bankruptcy
Rules 2002(b) and 3017(d);
h) establishing Nov. 11, 2025 at 4:00 p.m. (Prevailing Central
Time) as the Voting Deadline;
i) approving procedures for assumption, assumption and
assignment, or rejection of Contracts; and
j) granting related relief.
The Court held that the Disclosure Statement provides holders of
Claims entitled to vote on the Plan with adequate information to
make an informed decision as to whether to vote to accept or reject
the Plan within the meaning of section 1125 of the Bankruptcy Code
and complies with Bankruptcy Rule 3016(c). No further or additional
information is necessary or required.
Holders of Claims or Interests in Class 1 (Other Secured Claims),
Class 2 (Other Priority Claims), Class 6 (HoldCo General Unsecured
Claims), Class 7 (Intercompany Claims), Class 8 (Subordinated
Claims), Class 9 (HoldCo Equity Interests), and Class 10
(Intercompany Interests) are either (a) impaired and deemed to have
rejected the Plan pursuant to section 1126(g) of the Bankruptcy
Code or (b) unimpaired and presumed to have accepted the Plan
pursuant to section 1126(f) of the Bankruptcy Code. Accordingly,
holders of Claims and Interests in the Non-Voting Classes are not
entitled to vote to accept or reject the Plan and will not receive
a Ballot.
All Rule 3018(a) Motions must be filed on or before Oct. 30, 2025
at 4:00 p.m. (Prevailing Central Time).
The Court has established Nov. 11, 2025 at 4:00 p.m. (Prevailing
Central Time), as the deadline to submit votes to accept or reject
the Plan.
A hearing to consider confirmation of the Plan has been scheduled
for Nov. 19, 2025 at 1:00 p.m. (Prevailing Central Time), in
Houston.
The deadline to object or respond to confirmation of the Plan is
Nov. 11, 2025 at 4:00 p.m. (Prevailing Central Time).
A copy of the Court's Order dated October 14, 2025, is available at
http://urlcurt.com/u?l=44AsMZfrom PacerMonitor.com.
Attorneys for Debtors and Debtors in Possession:
Gabriel A. Morgan, Esq.
Clifford W. Carlson, Esq.
WEIL, GOTSHAL & MANGES LLP
700 Louisiana Street, Suite 3700
Houston, TX 77002
Telephone: (713) 546-5000
Facsimile: (713) 224-9511
Email: gabriel.morgan@weil.com
clifford.carlson@weil.com
- and -
Matthew S. Barr, Esq.
Andriana Georgallas, Esq.
Alexander P. Cohen, Esq.
WEIL, GOTSHAL & MANGES LLP
767 Fifth Avenue
New York, NY 10153
Telephone: (212) 310-8000
Facsimile: (212) 310-8007
Email: matt.barr@weil.com
andriana.georgallas@weil.com
alexander.cohen@weil.com
About Everstream Networks
Everstream Networks LLC is a business-focused provider of data,
internet, and communications services, operating a fiber network
spanning over 34,000 miles across 13 states in the U.S. Midwest and
Northeast. Headquartered in Cleveland, Ohio, the Company offers
enterprise-grade solutions such as dedicated internet access, dark
fiber, Ethernet, and network security. Founded in 2014 as a
subsidiary of nonprofit OneCommunity, Everstream has expanded
through a mix of organic growth and acquisitions.
Everstream Networks LLC and affiliates sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
25-90144) on May 28, 2025. In its petition, the Debtor reports
estimated assets (on a consolidated basis) between $500 million and
$1 billion and estimated liabilities (on a consolidated basis)
between $1 billion and $10 billion.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtor is represented by Gabriel A. Morgan, Esq., Clifford W.
Carlson, Esq., Matthew S. Barr, Esq., Andriana Georgallas, Esq.,
and Alexander P. Cohen, Esq. at WEIL, GOTSHAL & MANGES LLP. The
Debtors' Special Counsel is RICHARDS, LAYTON & FINGER, P.A. BANK
STREET GROUP LLC is the Debtors' M&A Advisor. ALVAREZ & MARSAL
NORTH AMERICA, LLC is the Debtors' Financial Advisor. STRETTO, INC.
is the Debtors' claims, noticing and solicitation agent.
FARMACY COFFEE: Seeks Chapter 7 Bankruptcy in New Mexico
--------------------------------------------------------
Farmacy Coffee Shop LLC has sought Chapter 7 bankruptcy protection
in the District of New Mexico, according to a voluntary petition
filed on October 14, 2025. Court documents reveal the company's
debts fall within the $0 to $100,000 range, and the filing lists an
estimated 1 to 49 creditors.
About Farmacy Coffee Shop LLC
Farmacy Coffee Shop LLC is a limited liability company.
Farmacy Coffee Shop LLC sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. D.N.M. Case No. 25-11278) on October 14,
2025. In its petition, the Debtor reports estimated assets and
liabilities up to $100,000.
Honorable Bankruptcy Judge Robert H. Jacobvitz handles the case.
The Debtor is represented by Christopher M. Gatton, Esq., of Gatton
& Associates, P.C.
FIRST BRANDS: Lenders Hire Huron for Help in Complex Bankruptcy
---------------------------------------------------------------
Eliza Ronalds-Hannon and Reshmi Basu of Bloomberg News report that
a group of secured lenders backing First Brands Group's bankruptcy
has brought in Huron Consulting Group to assist with the auto-parts
supplier's complex restructuring, according to people familiar with
the matter who requested anonymity to discuss private decisions.
Huron will concentrate on the operational aspects of the business,
including supplier management and production efficiency. The
lenders are already advised by Gibson Dunn & Crutcher LLP and
Evercore Inc., while First Brands has retained Weil Gotshal &
Manges LLP and Lazard Inc. to guide its Chapter 11 process,
according to report.
The lenders reportedly met Wednesday to review financing
strategies, creditor positioning, and operational stabilization
efforts as the company continues to navigate its Chapter 11
bankruptcy proceedings, 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.
FIRSTBASE.IO INC: Attempts to Derail Ch. 11, Creditor Says
----------------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that a major
creditor of Firstbase.io has asked a New York bankruptcy judge to
reject the company's request to pay Quinn Emanuel Urquhart &
Sullivan LLP nearly $802,000 in legal fees. According to the
creditor, the debtor's motion is an attempt to sabotage the
creditor-backed Chapter 11 plan by prioritizing attorney fees over
the financial recovery of creditors.
The creditor claims that the proposed payment would drain estate
funds and "crater" the reorganization, effectively blocking a
viable restructuring path. The objection warns that if approved,
the fees could render the creditor's plan infeasible and tilt the
process in favor of the debtor's own interests, the report states.
About Firstbase.io Inc.
Firstbase.io, Inc., is a technology company that provides business
formation services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11647) on Sept. 25,
2024, with $1 million to $10 million in assets and $10 million to
$50 million in liabilities.
Judge Lisa G. Beckerman oversees the case.
The Debtor is represented by Dawn Kirby, Esq., at Kirby Aisner &
Curley, LLP.
FIRSTBASE.IO INC: Unsecureds to be Paid in Full in Plan
-------------------------------------------------------
Firstbase.io, Inc., filed with the U.S. Bankruptcy Court for the
Southern District of New York a Disclosure Statement in connection
with Plan of Reorganization dated October 13, 2025.
The Debtor is a technology company which provides business
formation services to the public. On January 25, 2021, the Debtor
was formed under the laws of the State of Delaware. As of March 18,
2021, the Debtor was authorized to do business in the State of New
York.
On May 28, 2022, the Debtor and Harbor Business Compliance
Corporation entered into an agreement under which Harbor Compliance
would provide certain business services (the "Partnership
Agreement"). Disputes emerged between the Debtor and Harbor
Compliance, including the alleged misuse of information and
resources Harbor Compliance regarded as its trade secrets.
On August 13, 2024, Harbor Compliance filed a lawsuit against the
Debtor in the Supreme Court of the State of New York, County of New
York, Index No. 157580/2024, for the purpose of filing the Foreign
Judgment as a judgment in New York. On August 19, 2024, the Foreign
Judgment was entered in the New York County Clerk's Office (the
"Domesticated Judgment") then subsequently delivered to the New
York City Marshall (the "Levy") for execution upon the Debtor's
personal property.
The Debtor has received the Letter of Intent from the Plan Funder
proposing an investment in the amount of Twenty-Five Million
Dollars in Cash, which the Debtor believes will be sufficient to
fund 100% payments on all claims filed in its chapter 11 case along
with administrative claims, administrative professional claims,
claims of the U.S. Trustee, and any priority tax claims.
The Plan will be funded from the Plan Distribution Fund on the
Effective Date in the amount of $3,200,0000.00, plus an additional
$21,800,000.00 as follows: (i) $1,800,000 on or before June 30,
2026, (ii) $5,000,000.00 on or before September 30, 2026, (iii)
$5,000,000.00 on or before December 31, 2026; (iv) $5,000,000.00 on
or before March 31, 2027; and (v) $5,000.000.00 on or before June
20, 2027.
Further, under the Plan, Debtor's Professionals shall be paid from
the Professional Fee Escrow currently estimated in the amount of
$327,000.00 and the Plan Distribution Fund. These funds are
expected to be sufficient to pay 100% of Allowed Claims in full.
The Debtor shall effectuate all payments due under the Plan.
Class 4 consists of Allowed General Unsecured Claims. Holders of
Allowed Class 4 General Unsecured Claims shall be paid in full, in
Cash, from the Plan Distribution Fund as follows: (i) the remaining
balance of the Initial Funding in the estimated amount of
$339,358.02 (after payment in full of all Unclassified Claims, Cure
Claims, Professional Fee Reserve, the Cass 1 Allowed Secured Claim,
Class 2 Allowed Priority NonTax Claims and Class 3 Allowed Reduced
Claims) shall be paid pro-rata on the Effective Date; (ii) the June
30, 2026 Funding in the amount of $1,800,000.00; and (iii) a
portion of the September 30, 2026 Funding in the approximate amount
of $1,356,385.64 shall be paid pro rata until all Allowed Class 4
holders are paid in full.
Novel Capital Inc. failed to file a UCC-1 Financing Statement and
therefore will be treated under this Plan as an Allowed Class 4
General Unsecured Creditor. The Debtor anticipates the Allowed
Class 4 Claims total $3,495,743.66 The Allowed Class 4 Claims are
impaired and are entitled to vote to accept or reject the Plan.
The Holder of the Allowed Class 5 General Unsecured Claim, Harbor
Compliance, shall be paid in full, in Cash, plus interest at the
Federal Rate, after resolution of the disputed nature of its claim
from the Plan Distribution Fund which will be funded into escrow
pending resolution of the disputed nature of its claim to be
released within five business days of its claim becoming fixed as
follows (i) the balance of the September 30, 2026 Funding after
payment in full to Class 4; (ii) the December 31, 2026 Funding or
before five business days following the Reorganized Debtor's
receipt of same (iii) the March 31, 2027 Funding on or before five
business days following the Reorganized Debtor's receipt of same;
(iv) the June 30, 2027 Funding or before five business days
following the Reorganized Debtor's receipt of same.
The Debtor anticipates the total amount of the Class 5 Claim will
be $19,500,000.00 plus interest at the Federal Rate. The Allowed
Class 5 Claim is impaired and is entitled to vote to accept or
reject the Plan.
Class 7 Equity Interests consist of those persons or entities who
currently hold an equity interest in the Debtor. Allowed Class 7
Interests shall be canceled upon the Effective and reissued to the
Plan Funder. The holders of the Class 7 Interests are impaired
under this Plan and are deemed to reject the Plan.
The Plan shall be funded by the Plan Funder who shall, subject to
the terms hereof, effectuate the Plan Distribution Fund in the
amount of $25,000,000.00. The Plan Funder shall be capitalized by
an investment to-be-obtained. The Plan Funder shall not be given
any debt instrument, nor shall the Reorganized Debtor incur any
liability, in consideration for or in connection with the funding
of the Plan. The Plan Funder will receive one hundred percent of
the interests in the Reorganized Debtor.
In consideration, the Plan Funder will provide Cash in the amount
of $25,0000,000.00 to fund a 100% Plan to the Debtor's Allowed
Claims and will also issue stock in the Plan Funder in the
approximate value of $5,622,000.00 to Class 6 SAFE and/or SEAL
Contract Parties. Prior to the hearing to consider confirmation of
the Plan, the Plan Funder shall deposit the initial $3,200,000.00
of the Plan Distribution Fund into escrow with the Debtor's
attorneys, KAC.
Upon the occurrence of the Effective Date and satisfaction of the
conditions precedent set forth in Article VIII hereof, the Plan
Distribution Fund shall be released without further action or
authorization required to KAC to (i) professional fees and expenses
approved by the Bankruptcy Court (after application of the
Professional Fee Escrow), priority tax claims, fees due to the
Office of the United States trustee, any non-professional
administrative claims having filed a proof of claim that has not
been objected to prior to two weeks following the administrative
claims bar date; a reserve in the amount of $200,000.00 for post
confirmation professional fees, then to classified claims in the
order of priority.
A full-text copy of the Disclosure Statement dated October 13, 2025
is available at https://urlcurt.com/u?l=08caFU from
PacerMonitor.com at no charge.
Firstbase.io, Inc. is represented by:
KIRBY AISNER & CURLEY LLP
Dana P. Brescia, Esq.
Dawn Kirby, Esq.
700 Post Road, Suite 237
Scarsdale, New York 10583
Tel: (914) 401-9500
About Firstbase.io Inc.
Firstbase.io, Inc., is a technology company that provides business
formation services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11647) on Sept. 25,
2024, with $1 million to $10 million in assets and $10 million to
$50 million in liabilities.
Judge Lisa G. Beckerman oversees the case.
The Debtor is represented by Dawn Kirby, Esq., at Kirby Aisner &
Curley, LLP.
FLAVORS GROUP: Seeks Chapter 7 Bankruptcy in Florida
----------------------------------------------------
Flavors Group LLC filed for Chapter 7 bankruptcy in the U.S.
Bankruptcy Court for the Middle District of Florida on October 15,
2025. According to the filing, the company reported assets between
$0 and $100,000 and liabilities ranging from $100,001 to $1
million. FLAVORS GROUP LLC lists between 1 and 49 creditors.
About Flavors Group LLC
Flavors Group LLC, dba Aroma Indian Cuisine, operates within the
restaurant and food service industry.
Flavors Group LLC sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-02037) on October 15,
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 Luis Ernesto Rivera II handles the
case.
The Debtor is represented by Michael R. Dal Lago, Esq.
FLUX POWER: Haskell & White Raises Going Concern Doubt
------------------------------------------------------
Flux Power Holdings, Inc. disclosed in a Form 10-K Report filed
with the U.S. Securities and Exchange Commission for the fiscal
year ended June 30, 2025, that its auditor has expressed
substantial doubt about the Company's ability to continue as a
going concern.
Irvine, California-based Haskell & White LLP, the Company's auditor
since 2025, issued a "going concern" qualification in its report
dated September 16, 2025, attached to the Company's Annual Report
on Form 10-K for the year ended June 30, 2025, citing that the
Company has recurring losses from operations, an accumulated
deficit, expects to incur losses for the foreseeable future and
requires additional working capital to achieve its operating plans.
These conditions raise substantial doubt about the Company's
ability to continue as a going concern.
Historically, the Company's revenues and operating cash flows have
not been sufficient to sustain its operations and the Company has
relied on debt and equity financing for additional funds.
The Company has incurred an accumulated deficit of $106.4 million
through June 30, 2025, and for the year ended June 30, 2025,
generated positive cash flows from operations of $0.6 million and
incurred a net loss of $6.7 million, compared to a net loss of $8.3
million in 2024.
As of July 31, 2025, the Company had a cash balance of $1.1 million
and $6.7 million available funding under the Gibraltar Business
Capital Credit Facility. In addition, the Company's operations have
been impacted by delays in new orders of its energy storage
solutions due to corresponding deferrals of new forklift purchases
mainly caused by lower capital spending in the market sector that
the Company serves and interest rate variability affecting selected
large customer fleets which have impacted the Company's ability to
meet projected revenue targets and generate cash from operations.
Management has evaluated the Company's expected cash requirements,
including investments in additional sales and marketing and
research and development, capital expenditures and working capital
requirements, and believes the Company's existing cash, funding
available under the GBC Credit Facility, forecasted gross margins
and $3.8 million of cash proceeds from the $5.0 million Private
Placement, which closed on September 15, 2015, will not be
sufficient to meet the Company's anticipated capital resources to
fund planned operations for the next 12 months following the filing
date of this Annual Report on Form 10-K.
Management is evaluating strategies to improve profitability of
operations and to obtain additional funding. These steps include
actual and planned price increases for our energy storage
solutions, a number of cost saving initiatives including product
cost efficiencies and planned operating cost savings. Based on the
Company's existing backlog and customer orders, management
anticipates increased revenues, together with the improvements in
gross margin, will move the Company closer to profitability. The
planned gross margin improvement tasks include, but are not limited
to, a plan to drive bill of material costs down while increasing
price of the Company's products for new orders.
The Company also continues to execute cost reduction, sourcing and
pricing recovery initiatives in efforts to increase gross margins
and improve cash flow from operations. Unforeseen factors in the
general economy beyond management's control could potentially have
negative impact on the planned gross margin improvement plan.
Management is continuing to evaluate other sources of capital to
fund the Company's operations and growth. However, there can be no
assurance that the Company will be able to realize the plans for
improved operations or access necessary additional financing when
needed to provide sufficient liquidity to continue operations over
the next 12 months.
If such liquidity is not available when required, management will
be required to curtail investments in new product development,
which may have a material adverse effect on future cash flows and
results of operations and the Company's ability to continue
operating as a going concern.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/278nj9w8
About Flux Power
Flux Power Holdings, Inc. (FLUX: NASDAQ), through its subsidiary
Flux Power, Inc., designs, develops, and sells rechargeable
lithium-ion energy storage systems for electric forklifts, airport
ground support equipment (GSE), and other industrial motive
applications in the United States. The Company is headquartered in
Vista, California.
As of June 30, 2025, the Company had $34.75 million in total
assets, $40.16 million in total liabilities, and $5.40 million in
total stockholders' deficit.
GARFIELD 1115: Seeks Chapter 11 Bankruptcy in Florida
-----------------------------------------------------
Garfield 1115 Stallion LLC filed for Chapter 11 bankruptcy
protection in the U.S. Bankruptcy Court for the Southern District
of Florida on October 18, 2025.
According to the filing, the company reported liabilities valued
between $1 million and $10 million. The petition indicates that
Garfield 1115 Stallion LLC has between 1 and 49.
About Garfield 1115 Stallion LLC
Garfield 1115 Stallion LLC is a limited liability company.
Garfield 1115 Stallion LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-22289) on
October 18, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Mindy A. Mora handles the case.
GLENWOOD GFB: Seeks Chapter 11 Bankruptcy in Colorado
-----------------------------------------------------
On October 15, 2025, Glenwood GFB LLC initiated a voluntary Chapter
11 bankruptcy proceeding in the U.S. Bankruptcy Court for the
District of Colorado.
Court documents show the company has liabilities totaling between
$1 million and $10 million. The petition notes that the business
has between one and forty-nine creditors.
About Glenwood GFB LLC
Glenwood GFB LLC is a limited liability company.
Glenwood GFB LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Col. Case No. 25-16685) on October 15,
2025. In its petition, the Debtor reports estimated assets up to
$100,000 and estimated liabilities between $1 million and $10
million.
The Debtor is represented by Gregory K Stern, Esq., of Gregory K.
Stern, P.C.
GRACE ROYALS: Seeks Subchapter V Bankruptcy in Colorado
-------------------------------------------------------
On October 15, 2025, Grace Royals Inc. voluntarily filed for
Chapter 11 bankruptcy in the District of Colorado. Court records
indicate that the company's liabilities fall between $1 million and
$10 million. The bankruptcy petition also reports that the business
has between 1 and 49.
About Grace Royals Inc.
Grace Royals Inc. is a Colorado-based corporation.
Grace Royals Inc. sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 25-16681) on
October 15, 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 Kimberley H. Tyson handles the case.
The Debtor is represented by Gregory K. Stern, Esq., of Gregory K.
Stern, P.C.
GRAY MEDIA: Angel Oak Marks $600,000 Unsecured Note at 26% Off
--------------------------------------------------------------
Angel Oak Strategic Credit Fund has marked $600,000 in 5.375%
senior unsecured note issued by Gray Media, Inc., that matures on
November 15, 2031, to market at $443,381, or 74% on the dollar,
according to the Fund's Semi-Annual Report on Form N-CSRS for the
period ended July 31, 2025, delivered to the Securities and
Exchange Commission on October 6.
Angel Oak may be reached at:
Ward Bortz, President
3344 Peachtree Rd. NE, Suite 1725
Atlanta, GA 30326
The Fund is advised by:
Stephen T. Cohen, Esq.
Matthew E. Barsamian, Esq.
Dechert LLP
1900 K Street NW
Washington, DC 20006
Gray Media, Inc., doing business as Gray Television, is an American
publicly traded television broadcasting company based in Atlanta.
HIGH WIRE: CFO Curtis Smith and Two Directors Step Down
-------------------------------------------------------
High Wire Network, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission on October 14, 2025,
that on July 9, 2025, Stephen LaMarche resigned from the Company's
Board of Directors.
On July 11, 2025, Curtis E. Smith resigned as Chief Financial
Officer of the Company.
On July 17, 2025, Peter Kruse resigned from the Board of Directors,
effective July 9, 2025.
No disputes or disagreements with management, operations, policies,
or practices of the Company were reported by the resigning
directors or officer.
About High Wire
High Wire Network, Inc., incorporated on Jan. 20, 2017, is a global
provider of managed cybersecurity, managed networks, and
tech-enabled professional services delivered exclusively through a
channel sales model. The Company's Overwatch managed security
platform-as-a-service offers organizations end-to-end protection
for networks, data, endpoints, and users via multiyear recurring
revenue contracts in this fast-growing technology segment. HWN has
continuously operated under the High Wire Networks brand for 23
years.
Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2014, issued a "going concern" qualification in its
report dated March 31, 2025, attached to the Company's Annual
Report on Form 10-K for the year ended December 31, 2024, citing
that the Company has incurred losses since inception, has negative
cash flows from operations, and has negative working capital, which
creates substantial doubt about its ability to continue as a going
concern
As of June 30, 2025, the Company had $5.46 million in total assets,
$10.76 million in total liabilities, and a total stockholders'
deficit of $5.30 million.
HIGH WIRE: Sells Cybersecurity and Voice Assets to Tego Cyber
-------------------------------------------------------------
High Wire Network, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission on October 14, 2025,
that the Company and its subsidiaries completed the sale of
substantially all operating assets of its Managed Security Services
and Voice Network divisions to wholly-owned subsidiaries of Tego
Cyber Inc. (OTCQB: TGCB) on August 13, 2025.
* OW Cyber LLC, a subsidiary of Tego Cyber, acquired
substantially all assets of High Wire Networks, Inc. related to the
managed cybersecurity business for total consideration of 750,000
shares of Tego Cyber's Series B Preferred Stock (stated value $3.0
million) and assumption of certain liabilities.
* Secure Voice LLC, a subsidiary of Tego Cyber, acquired
substantially all assets of Secure Voice Corp., High Wire's
wholesale voice network subsidiary, for total consideration of
250,000 shares of Tego Cyber's Series B Preferred Stock (stated
value $1.0 million) and assumption of certain liabilities.
In connection with the transactions, Helena Global Investment
Opportunities 1 Ltd., the Company's senior secured lender, provided
a limited release of its security interests in the assets conveyed
to OW Cyber and Secure Voice in exchange for $300,000 stated value
of Tego Cyber's Series A Preferred Stock as partial satisfaction of
High Wire's secured debt obligations.
Helena's correspondence dated August 15, 2025 confirmed its consent
to the transactions and retention of its perfected security
interest in all remaining assets of High Wire and its subsidiaries
until the remaining balance of $150,000 is repaid in full.
About High Wire
High Wire Network, Inc., incorporated on Jan. 20, 2017, is a global
provider of managed cybersecurity, managed networks, and
tech-enabled professional services delivered exclusively through a
channel sales model. The Company's Overwatch managed security
platform-as-a-service offers organizations end-to-end protection
for networks, data, endpoints, and users via multiyear recurring
revenue contracts in this fast-growing technology segment. HWN has
continuously operated under the High Wire Networks brand for 23
years.
Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2014, issued a "going concern" qualification in its
report dated March 31, 2025, attached to the Company's Annual
Report on Form 10-K for the year ended December 31, 2024, citing
that the Company has incurred losses since inception, has negative
cash flows from operations, and has negative working capital, which
creates substantial doubt about its ability to continue as a going
concern
As of June 30, 2025, the Company had $5.46 million in total assets,
$10.76 million in total liabilities, and a total stockholders'
deficit of $5.30 million.
HIGH WIRE: Signs Letter of Intent to Acquire Elevation Aerospace
----------------------------------------------------------------
High Wire Network, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission on October 14, 2025,
that the Company entered into a non-binding Letter of Intent with
Thoth Aerospace Inc., a New York corporation, and its sole
shareholder, on September 25, 2025.
The LOI contemplates that High Wire Networks, Inc. would acquire
100% ownership of Elevation Aerospace Inc. in a transaction to be
structured as an equity exchange.
Key terms include:
* continuation of Thoth Aerospace's management and employees
post-closing, delivery of audited or unaudited financial statements
sufficient to comply with Item 9.01 of Form 8-K,
* an exclusive negotiation period of 30 days (extendable by
mutual agreement), and
* binding provisions relating to exclusivity, confidentiality,
and a 1% break-up fee in case of breach.
The transaction remains subject to due diligence, final board
approval, execution of a definitive acquisition agreement, and
customary closing conditions.
About High Wire
High Wire Network, Inc., incorporated on Jan. 20, 2017, is a global
provider of managed cybersecurity, managed networks, and
tech-enabled professional services delivered exclusively through a
channel sales model. The Company's Overwatch managed security
platform-as-a-service offers organizations end-to-end protection
for networks, data, endpoints, and users via multiyear recurring
revenue contracts in this fast-growing technology segment. HWN has
continuously operated under the High Wire Networks brand for 23
years.
Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2014, issued a "going concern" qualification in its
report dated March 31, 2025, attached to the Company's Annual
Report on Form 10-K for the year ended December 31, 2024, citing
that the Company has incurred losses since inception, has negative
cash flows from operations, and has negative working capital, which
creates substantial doubt about its ability to continue as a going
concern
As of June 30, 2025, the Company had $5.46 million in total assets,
$10.76 million in total liabilities, and a total stockholders'
deficit of $5.30 million.
HIGHER GROUND EDUCATION: Gray Reed Represents Creditors' Committee
------------------------------------------------------------------
The law firm of Gray Reed disclosed in a verified statement
pursuant to Federal Rule of Bankruptcy Procedure 2019 that it
represents the Official Committee of Unsecured Creditors appointed
in the Chapter 11 bankruptcy cases of Higher Ground Education Inc.
and its debtor-affiliates pending before the United States
Bankruptcy Court for the Northern District of Texas, Dallas
Division.
The Committee members and their claims in the Debtors' cases are:
1. 214 E Hallandale Beach, LLC
1395 Brickell Avenue, Suite 760
Miami, FL 33131
Claim: at least $31,072,411.99 -- Proofs of Claim Nos. 8
(against HGE FIC I LLC) and 9 (against Higher Ground Education
Inc.) as may be amended, for breach of lease and related guaranty;
2. The School of Practical Philosophy
12 East 79th Street
New York, NY 10075
Claim: at least $1,727,523.37 -- Proof of Claim Nos. 301
and 363, as may be amended, for unpaid rent and other amounts owing
under a lease;
3. Cathy Eunjoo Lim
4149 Freedom Ln.
Frisco, TX 75033
Claim in the amount of no less than $447,357.95 for unpaid
rent and other amounts owing under a lease;
4. Pure Tempe Partnership
232 Deerfield Rd.
Deerfield, IL L60015
Claim in the amount of no less than $447,045.54 for unpaid
rent and other amounts owing under a lease; and
5. RTS Orchards, LLC
831 Calloway Dr. Suite 102
Bakersfield, CA 93312
Claim in the amount of no less than $525,657.49 for unpaid
rent and other amounts owing under a lease.
The firm may be reached at:
Jason S. Brookner, Esq.
Aaron M. Kaufman, Esq.
Amber M. Carson, Esq.
Emily F. Shanks, Esq.
GRAY REED
1601 Elm Street, Suite 4600
Dallas, TX 75201
Telephone: (214) 954-4135
Facsimile: (214) 953-1332
Email: jbrookner@grayreed.com
akaufman@grayreed.com
acarson@grayreed.com
eshanks@grayreed.com
About Higher Ground Education
Higher Ground Education Inc. and its subsidiaries operate
Montessori schools and provide related training and consulting
services worldwide. Founded in 2016, the Group grew to manage more
than 150 schools by 2024, with locations across the U.S. and
international expansion into Hong Kong and mainland China. It also
offers virtual and home-based education, teacher training, and
licensing of its content to independent partners.
Higher Ground Education Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80121) on
June 17, 2025. In its petition, the Debtor reports estimated assets
and liabilities between $100 million and $500 million each.
Bankruptcy Judge Michelle V. Larson handles the case.
The Debtors tapped Foley & Lardner LLP, as counsel; and
SierraConstellation Partners, LLC, as financial advisor. Verita
Global, LLC, f/k/a Kurtzman Carson Consultants, LLC, is the claims
agent.
The official committee of unsecured creditors retained Emerald
Capital Advisors Corp. as its financial advisor; and Gray Reed as
counsel.
HIGHER GROUND: Updates Unsecured Claims Pay Details
---------------------------------------------------
Higher Ground Education, Inc., its affiliates, and the Official
Committee of Unsecured Creditors submitted a Second Amended
Disclosure Statement for the Second Amended Joint Plan dated
October 13, 2025.
The Debtors and the Committee strongly believe that the Plan is in
the best interests of the Debtors estates, their respective
creditors and interest holders, and that the Plan represents the
best available alternative at this time and will provide material
benefits to the stakeholders in these Chapter 11 Cases.
As described in Article 4 of the Plan and Articles VI and VII.G of
this Disclosure Statement, after the Effective Date, the
Liquidating Trustee will fund distributions under the Plan from (a)
the Plan Sponsor Consideration, (b) the Surplus DIP Cash, (c) the
Settlement Party Payment, (d) any D&O Claim Resolution, (e) the
Liquidating Trust Assets, and (f) the D&O Insurance Policies.
The amount of recoveries from any D&O Claim Resolution, the
Liquidating Trust Assets, and the D&O Insurance Policies has not
been liquidated to a certain dollar amount. As such, the amount of
Cash recoverable from these sources of Consideration is not known.
The Girns filed proofs of claims against the Debtors' estates. See
Claim Nos. 468 and 469. Specifically, Mr. Girn asserts claims in
the amount of not less than $5,356,445.59 and Mrs. Girn asserts
claims in the amount of not less than $1,272,917. Potential
recoveries for other Creditors may be negatively affected if the
Girns' Claims are deemed Allowed.
The Debtors have deemed the Girns' Claims as Disputed Claims and
the Debtors or their successors intend to file objections to the
Girns' Claims. The Debtors also believe that they have Causes of
Actions against the Girns for fraudulent and preferential transfers
and the Debtors intend to file adversary proceedings against the
Girns to recover these transfers. Potential recoveries from the
Causes of Actions against the Girns are considered Liquidating
Trust Assets.
Class 5 consists of the CN-3 Note Claims, the Holders of which (a)
are Settlement Parties or (b) will be offered the right to become
an investor or other creditor of Guidepost Global in lieu of
receiving a distribution under the Plan. The CN-3 Note Claims held
by the Settlement Parties are Allowed Claims under the Plan. All
Holders of Allowed CN-3 Note Claims shall be deemed to have waived
their distribution under the Plan on account of their respective
Allowed CN-3 Note Claims; provided, however, that all CN-3 Note
Claims held by the Plan Sponsor and Senior DIP Lender shall not be
deemed satisfied, released, settled, and/or discharged under this
Plan.
For the avoidance of doubt, all Settlement Partners that are also
Holders of CN-3 Note Claims, the Girns, and any other Holder of a
CN-3 Note Claim that accepts a proposal from Guidepost Global to
become an investor or other creditor of Guidepost Global, shall be
deemed to waive their distribution on account of their CN-3 Note
Claims and shall receive no beneficial interest in or Cash
distribution from the Liquidating Trust. Further, the CN-3 Note
Claim held by the Girns is deemed a Disputed Claim under the Plan.
Class 8 consists of all General Unsecured Claims. Class 8 is
Impaired. On or as soon as practicable after the Effective Date,
except to the extent that a Holder of an Allowed General Unsecured
Claim agrees to less favorable treatment, each Holder of an Allowed
General Unsecured Claim shall receive, in full and final
satisfaction of such Allowed General Unsecured Claim, a beneficial
interest in the Liquidating Trust. Thereafter, each such Holder of
an Allowed General Unsecured Claim shall receive Cash distributions
from the Liquidating Trust. Distributions from the Liquidating
Trust to Holders of Allowed General Unsecured Claims shall be on a
pro rata basis with all other Liquidating Trust Beneficiaries in
accordance with the terms of the Liquidating Trust Agreement.
For the avoidance of doubt, all Settlement Parties shall be deemed
to waive their distribution or other treatment on account of their
General Unsecured Claims, if any. Further, any General Unsecured
Claim held by the Girns is deemed a Disputed Claim under the Plan.
This Class will receive a distribution of 1.8% to 10.1% of their
allowed claims.
Sources of consideration for Plan distributions shall be (a) the
Plan Sponsor Consideration, (b) the Surplus DIP Cash, (c) the
Settlement Party Payment, (d) any D&O Claim Resolution, (e) the
Liquidating Trust Assets, and (f) the D&O Insurance Policies.
Ballots containing votes must be received by the Debtors' Claims
and Noticing Agent, Kurtzman Carson Consultants, LLC d/b/a Verita
Global on or before the Voting Deadline of November 17, 2025 at
5:00 p.m.
The Debtors will request that the Bankruptcy Court schedule the
Combined Hearing for November 24, 2025 at 1:30 p.m. Objections to
Confirmation of the Plan must be filed and served on the Debtors,
and certain other parties, by November 17, 2025 at 5:00 p.m.
A full-text copy of the Second Amended Disclosure Statement dated
October 13, 2025 is available at https://urlcurt.com/u?l=DOcJdf
from Verita Global, LLC fka Kurtzman Carson Consultants, LLC,
claims agent.
The Debtors' Counsel:
Holland N. O'Neil, Esq.
FOLEY & LARDNER LLP
2021 McKinney Avenue, Suite 1600
Dallas, TX 75201
Tel: (214) 999-3000
Fax: (214) 999-4667
honeil@foley.com
- and -
Timothy C. Mohan, Esq.
FOLEY & LARDNER LLP
1144 15th Street, Ste. 2200
Denver, CO 80202
Tel: (720) 437-2000
Fax: (720) 437-2200
Email: tmohan@foley.com
- and -
Nora J. McGuffey, Esq.
Quynh-Nhu Truong, Esq.
FOLEY & LARDNER LLP
1000 Louisiana Street, Suite 2000
Houston, TX 77002
Tel: (713) 276-5500
Fax: (713) 276-5555
Email: nora.mcguffey@foley.com
qtruong@foley.com
About Higher Ground Education
Higher Ground Education Inc. and its subsidiaries operate
Montessori schools and provide related training and consulting
services worldwide. Founded in 2016, the Group grew to manage more
than 150 schools by 2024, with locations across the U.S. and
international expansion into Hong Kong and mainland China. It also
offers virtual and home-based education, teacher training, and
licensing of its content to independent partners.
Higher Ground Education Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80121) on
June 17, 2025. In its petition, the Debtor reports estimated assets
and liabilities between $100 million and $500 million each.
Bankruptcy Judge Michelle V. Larson handles the case.
The Debtors tapped Foley & Lardner LLP, as counsel; and
SierraConstellation Partners, LLC, as financial advisor. Verita
Global, LLC, f/k/a Kurtzman Carson Consultants, LLC, is the claims
agent.
HYPER FOX: Seeks to Hire David Freydin PC as Bankruptcy Counsel
---------------------------------------------------------------
Hyper Fox, Inc. seeks approval from the U.S. Bankruptcy Court for
the Northern District of Illinois to hire the Law Offices of David
Freydin PC as its bankruptcy counsel.
The firm's services include:
(a) negotiation with creditors;
(b) preparation of a plan and financial statements; and
(c) examination and resolution of claims filed against the
estate.
The firm will be paid at these hourly rates:
David Freydin, Attorney $450
Jan Michael Hulstedt, Attorney $425
Derek Lofland, Attorney $425
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a prepetition retainer of $10,000 prior to the
filing of the case.
Mr. Freydin 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:
David Freydin, Esq.
Law Offices of David Freydin PC
8707 Skokie Blvd., Suite 312
Skokie, IL 60077
Telephone: (847) 972-6157
Facsimile: (866) 897-7577
Email: david.freydin@freydinlaw.com
About Hyper Fox Inc.
Hyper Fox, Inc. provides transportation and logistics services from
its headquarters at 501 Marcus Drive, Lombard, Illinois. The
Company operates as a for-hire carrier across the United States,
managing a fleet of trucks and trailers for freight hauling. It is
specializing in general freight transportation.
Hyper Fox filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-15174) on October 1,
2025, with $591,450 in assets and $1,186,247 in liabilities.
Mariusz Poniewozik, president of Hyper Fox, signed the petition.
David Freydin, Esq., at the Law Offices of David Freydin represents
the Debtor as bankruptcy counsel.
IMAGE LOCATIONS: Seeks to Hire Jeffrey S. Shinbrot APLC as Counsel
------------------------------------------------------------------
Image Locations, Inc seeks approval from the U.S. Bankruptcy Court
for the Central District of California to hire Jeffrey S. Shinbrot,
APLC to handle its Chapter 11 case.
The firm will be paid at the rate of $750 per hour for attorneys
and $150 per hour for paralegals. In addition, the firm will
receive reimbursement for out-of-pocket expenses incurred.
The Debtor paid the firm a pre-bankruptcy retainer in the amount of
$66,738.
Jeffrey Shinbrot, Esq., disclosed in a court filing that his firm
is a "disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Jeffrey S. Shinbrot, Esq.
JEFFREY S. SHINBROT, APLC
15260 Ventura Blvd., Suite 1200
Sherman Oaks, CA 91403
Telephone: (310) 659-5444
Facsimile: (310) 878-8304
Email: jeffrey@shinbrotfirm.com
About Image Locations Inc.
Image Locations Inc. is a business that specializes in offering
rental spaces and locations for film and television production.
Image Locations Inc. sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-18780) on
October 2, 2025. In its petition, the Debtor reports estimated
assets up to $500,000 and estimated liabilities up to $10 million.
Honorable Bankruptcy Judge Vincent P. Zurzolo handles the case.
The Debtor is represented by Jeffrey S. Shinbrot, Esq., at The
Shinbrot Firm.
INSYS THERAPEUTICS: Ex-CEO Babich Reaches $30MM Trustee Deal
------------------------------------------------------------
Jeff Montgomery of Law360 reports that former Insys Therapeutics
CEO Michael Babich has consented to a $30 million settlement with
the bankruptcy trustee managing the company's estate, resolving
claims tied to Insys' fraudulent marketing of the opioid painkiller
Subsys.
The agreement, filed in Delaware Chancery Court, is part of a
larger effort to recover funds from former executives accused of
profiting from unethical marketing tactics that contributed to the
company's downfall, according to the report.
The trustee's complaint alleged that Babich, along with other
company leaders, played a central role in promoting Subsys for
unapproved uses and providing financial incentives to prescribers.
These actions not only triggered federal investigations but also
pushed Insys into bankruptcy following widespread litigation and
criminal convictions, the report states.
With this $30 million settlement, Babich joins a growing list of
ex-Insys executives facing financial accountability for their roles
in the opioid crisis. The agreement marks a significant recovery
for the bankruptcy estate as it continues to pursue restitution for
creditors harmed by the company's misconduct.
About Kabbage Inc.
Founded in 2010 and headquartered in Atlanta, Ga., Legacy Kabbage,
a predecessor of Kabbage Inc. (doing business as KServicing) --
http://www.kservicing.com/-- was one of the leading fintech
providers of working capital to small businesses for over a
decade.
Legacy Kabbage began as a proprietary online lending platform for
small businesses, providing loan services to over 250,000 American
small businesses, many of which were businesses that struggled to
receive adequate funding through traditional banking institutions.
From 2020-2021, the company provided and facilitated necessary
funding to small business owners through PPP loans during the
COVID-19 pandemic. The company's existing technology infrastructure
spearheaded its PPP work, which led to a total of $7 billion in
loans being originated by the company.
The origination and servicing of PPP Loans and small business loans
to eligible borrowers was critical during a time of unprecedented
health and economic uncertainty brought about by the COVID-19
pandemic. On Aug. 16, 2020, much of the company's business was sold
to American Express Travel Related Services Company, Inc. As a
result of the merger, KServicing now operates in a limited capacity
as (i) a servicer and subservicer of PPP Loans, (ii) a software
services provider for lenders of PPP Loans, and (iii) a servicer of
a minor portfolio of non-PPP small business loans.
To implement the wind down of their businesses, on Oct. 3, 2022,
Kabbage, Inc. d/b/a KServicing and certain of its affiliates each
filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. D. Del. Lead Case No.
22-10951). Judge Craig T. Goldblatt oversees the cases.
Kabbage Inc. estimated $500 million to $1 billion in assets and
debt as of the bankruptcy filing.
The Debtors tapped Weil, Gotshal & Manges, LLP as general counsel;
Richards, Layton & Finger, PA as local counsel; AlixPartners, LLC
as financial advisor; KPMG International Limited as fraud review
services provider; Jones Day, LLP as government investigations
counsel; and Marc Sullivan, managing director at Phoenix Executive
Services, LLC, as chief financial officer. Omni Agent Solutions,
Inc. is the Debtors' claims agent and administrative advisor.
Greenberg Traurig, LLP, serves as counsel to the Debtors' board of
directors.
INTEGRITY CELEBRATIONS: Rental Income & Contribution to Fund Plan
-----------------------------------------------------------------
Integrity Celebrations LLC, filed with the U.S. Bankruptcy Court
for the Eastern District of Wisconsin a Disclosure Statement
describing Chapter 11 Plan dated October 9, 2025.
The Debtor is a single asset real estate company formed in 2016 to
operate a banquet hall located at 2789 Browns Lake Dr, Burlington,
Wisconsin, 53105.
Its only income source is $11,300 in monthly rent due from an
operating company under common ownership, Integrity Funeral
Services Inc. ("Funeral"). The Debtor's equity is owned entirely by
its sole member and manager, Cynthia Schweitzer, who also owns all
of the equity in Funeral.
After 5 successful years of operation, Ms. Schweitzer sought to
expand by opening her own space to host catered events. In 2015,
Ms. Schweitzer purchased approximately four acres of land upon
which the Debtor’s building now sits. In 2016, the Debtor entity
was formed and the land was deeded to the Debtor. On June 27, 2018,
the Debtor obtained a construction loan to build the banquet hall,
pave a parking lot, and acquire other items necessary to operate
the real estate. The loan is guaranteed by Funeral, Ms. Schweitzer,
and her husband, and is secured by the real estate and an
assignment of rents. Construction finally finished in March of 2019
and the business operation was successfully cash flowing.
Class 3 consists of General Unsecured Claims. The Debtor scheduled
7 nonpriority unsecured claims in the total amount of $3,771.94 as
noncontingent, liquidated, and nondisputed. None of the scheduled
creditors filed a proof of claim before the May 7, 2025 bar date.
However, the IRS and the DOR both filed proofs of claim with
nonpriority unsecured components totaling $2,040.00, withdrew or
amended the entirety of their claims to $0.00.
The Debtor will pay the entire Class 3 Claim in full on or before
the first day of the month following the Effective Date from a
personal contribution from the Debtor's sole manager, Cynthia
Schweitzer. Class 3 is unimpaired and the holders of Class 3 Claims
are not entitled to vote to accept or reject the Plan.
Class 4 consists of Equity Interest Holders. Cynthia Schweitzer
shall retain her equity interest in the Debtor subject to the terms
of this Plan.
The Debtor will make Plan payments through a combination of:
* monthly rents received from Integrity Funeral Services Inc.
in the amount of $15,250 to fund payments to Class 1. Following the
Effective Date, Celebrations and Funeral will amend their lease to
include a rental amount of $15,250, and may amend their lease from
time to time to include a rental amount sufficient to fund payments
to Class 1;
* lump sum payments from personal contributions from the
Debtor’s sole manager, Cynthia Schweitzer, to Class 2
($10,727.09) and Class 3 ($3,771.94);
* funds from the security retainer held in trust by the
Debtor's bankruptcy counsel for payment of approved fees of
professionals, including post-petition legal services and expenses.
As of October 9, 2025, counsel continues to hold $155,533.50 in its
trust account and estimates its post-petition legal fees and
expenses through the Confirmation Date will be approximately
$35,000.00; and
* if needed, contributions from Cynthia Schweitzer personally
to fund monthly payments to Class 1.
A full-text copy of the Disclosure Statement dated October 9, 2025
is available at https://urlcurt.com/u?l=3U1RkL from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Craig E. Stevenson, Esq.
Michael C. Jurkash, Esq.
Swanson Sweet LLP
107 Church Avenue
Oshkosh, WI 54901
Tel: (920) 235-6690
About Integrity Celebrations LLC
Integrity Celebrations LLC is a single asset real estate debtor, as
defined in 11 U.S.C. Section 101(51B).
Integrity Celebrations LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Wis. Case No.: 25-20595) on
February 5, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Judge Rachel M. Blise handles the case.
The Debtor is represented by Craig Stevenson, Esq. at SwansonN
Sweet, LLP.
Citizens Bank, as secured lender, is represented by:
Daniel J. Habeck, Esq.
Beth M. Brockmeyer, Esq.
Cramer Multhauf LLP
1601 E. Racine Ave., Suite 200
Waukesha, WI 53186
Email: djh@cmlawgroup.com
bb@cmlawgroup.com
INVESTMENTS GROUP: Hires Crane Simon Clar & Goodman as Counsel
--------------------------------------------------------------
Investments Group LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Illinois, Eastern Division, to employ
John H. Redfield, Esq. and his law firm Crane, Simon, Clar &
Goodman as legal counsel in its Chapter 11 case.
Mr. Redfield and CSCG will provide these services:
(a) prepare necessary applications, motions, answers, orders,
adversary proceedings, reports and other legal papers for
presentation to the Court;
(b) provide the Debtor advice with respect to its rights and
duties involving its property as well as its reorganization
efforts;
(c) appear in court and litigate any issues, when necessary;
and
(d) perform any and all other legal services that may be
required from time to time in the ordinary course of the Debtor's
business during the administration of the bankruptcy case.
According to court filings, Crane, Simon, Clar & Goodman received a
pre-petition retainer of $10,000 plus the filing fee of $1,738.
Prior to the petition date, the firm performed 7.2 hours of legal
services at a rate of $450 per hour, totaling $3,240.
CSCG is a "disinterested person" within the meaning of Section
101(14) of the Bankruptcy Code and does not hold any interest
adverse to the Debtor or the estate in matters upon which it is to
be engaged.
The firm can be reached at:
John H. Redfield, Esq.
CRANE, SIMON, CLAR & GOODMAN
135 S. LaSalle Street, Suite 3950
Chicago, IL 60603
Telephone: (312) 641-6777
Facsimile: (312) 641-7114
E-mail: jredfield@cranesimon.com
Website: www.cranesimon.com
About Investments Group LLC
Investments Group, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
25-13964) on September 10, 2025, listing up to $50,000 in assets
and between $500,001 and $1 million in liabilities.
Judge Timothy A. Barnes oversees the case.
Scott R. Clar, Esq., at Crane, Simon, Clar & Goodman represents the
Debtor as legal counsel.
IT IS WELL: Seeks to Tap Smith Conerly as Bankruptcy Counsel
------------------------------------------------------------
It Is Well Healthcare LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to hire Smith Conerly
LLP as bankruptcy counsel.
The Debtor requires the firm to:
(a) assist the Debtor in preparing schedules of assets and
liabilities and statement of financial affairs;
(b) provide legal advice with respect to the Debtor's powers
and duties as a debtor-in-possession in the continued operation of
its business and management of its property;
(c) prepare and file all necessary motions, notices, and other
pleadings necessary to sell some or substantially all of the
Debtor's assets;
(d) attend meetings and negotiate with representatives of the
Debtor's creditors and other parties-in-interest;
(e) assist the Debtor in reviewing and maintaining its
executory contracts and unexpired leases, and negotiating with
parties thereto;
(f) prepare and pursue approval of a disclosure statement and
confirmation of a plan of reorganization (or liquidation);
(g) prepare on behalf of the Debtor all necessary
applications, motions, answers, orders, reports and other legal
papers;
(h) review the nature and validity of liens asserted against
the Debtor's property and advising the Debtor concerning the
enforceability of any liens;
(i) appear in Court on behalf of the Debtor and protect the
interests of the Debtor before the Court;
(j) prosecute and defend litigation matters and such other
matters that might arise during this Chapter 11 case; and
(k) perform all other legal services for the Debtor which may
be necessary and proper in these proceedings.
Smith Conerly's hourly rates are:
Partners $400
Associates $350
Paralegals $95
Smith Conerly holds a retainer of $23,262.
Smith Conerly does not hold or represent any interest adverse to
the Debtor's estates and is a "disinterested person" as that phrase
is defined in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
J. Nevin Smith, Esq.
SMITH CONERLY LLP
402 Newnan Street
Carrollton, GA 30117
Telephone: (770) 834-1160
Facsimile: (770) 834-1190
E-mail: jsmith@smithconerly.com
About It Is Well Healthcare LLC
It Is Well Healthcare LLC provides primary care and wellness
services in Dallas, Georgia. The clinic offers medical evaluations,
chronic care management, physical exams, immunizations, and
diagnostic testing, along with treatment for conditions such as
hypertension, diabetes, and thyroid disorders. It also provides
aesthetic and wellness treatments including hormone replacement
therapy, facials, dermal fillers, microdermabrasion, and body
contouring procedures.
It Is Well Healthcare LLCsought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-11533) on October 9,
2025. In its petition, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $1 million and $10
million.
The Debtor is represented by J. Nevin Smith, Esq. of SMITH CONERLY
LLP.
JANUS INTERNATIONAL: S&P Upgrades ICR to 'BB-' on Low Leverage
--------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Temple.
Ga.-based building products door manufacturer Janus International
Group LLC to 'BB-' from 'B+'. At the same time, S&P raised the
issue-level rating on the company's first-lien term loan B due 2030
to 'BB' from 'BB-'. The recovery rating remains '2'.
The stable outlook reflects S&P's expectation that debt leverage
could remain below 3x over the next 12 months, which provides a
cushion in case macroeconomic weakness persists longer than it
anticipates.
S&P said, "We expect Temple. Ga.-based building products door
manufacturer Janus International Group LLC to maintain debt
leverage below 3x in 2025 and 2026 despite currently weak
macroeconomic conditions.
"We also expect the company would sustain debt leverage below 4x in
most market conditions, due to its relatively low debt balances and
good cash generation.
"We expect debt leverage will remain below 3x in 2025 and 2026.
This is in line with S&P Global Ratings-adjusted debt to EBITDA of
2.4x for the trailing-12-months ended June 28, 2025. Leverage is
low is because of relatively low debt balances, which have helped
to mitigate weaker operating performance with revenues and EBITDA
declining 14% and about 39%, respectively, compared with the same
period last year. Given this performance, we anticipate revenues
declining close to 9% in 2025, with EBITDA margins around 22%, down
from 23% in 2024. The weaker performance is due to lower demand in
new construction and restoration, rebuilding, and replacement (R3)
end markets as macroeconomic weakness and high interest rates delay
projects. In 2026, we expect some stabilization in end markets
supported by potential rate cuts, resulting in organic revenues
increasing about 3% and EBITDA margins remaining around 22%."
Janus will continue generating positive free operating cash flow
(FOCF) and its financial policy will support the higher rating. S&P
said, "We anticipate Janus will generate $90 million to $100
million in FOCF in 2025 and 2026 given stable capital spending
around 2%-2.5% of revenues. We expect it will direct excess cash
toward share repurchases and acquisitions rather than debt
reduction given currently low leverage. We have assumed about $40
million in share repurchases in 2025 and 2026. Janus has been
acquisitive in the past and we have incorporated about $60 million
in acquisitions in 2026." Janus aims to maintain strong balance
sheet capacity and strategic flexibility for acquisitions, growth
initiatives, and value-enhancing investments. As such, the company
has publicly stated a net debt leverage target of 2x-3x and has
maintained debt to EBITDA of below 3x over the past three years.
S&P said, "We base our assessment of Janus' competitive position on
its small but expanding scale, niche product focus, and seasonal
demand in the self-storage industry. Offsetting these factors is
its good market share and high margins. Janus has expanded over the
past few years through acquisitions and organic growth, with
revenues of close to $900 million and EBITDA of about $182 million
for the trailing-12-months ended June 28, 2025. The company is
small compared with similarly rated building materials companies.
Janus also has limited geographic diversity, with approximately 90%
of sales in the U.S. and has a niche but expanding product focus,
although a large percentage of products are tied to the
self-storage industry. It is also exposed to seasonal demand,
driven by construction of self-storage facilities and R3 of older
storage facilities. Partially mitigating these risks is that Janus
is a dominant player in the self-storage sector, supplying a large
percentage of building materials used in these facilities. This
contributes to EBITDA margins that we consider above average for
the building materials sector, with support from the company's
value-added services, low-cost manufacturing footprint, and
increasing operating leverage.
"The stable outlook reflects our expectation that debt leverage
could remain below 3x over the next 12 months, which provides a
cushion in case macroeconomic weakness persists longer than we
anticipate. We also believe Janus could maintain debt leverage
below 4x in most market conditions."
S&P could lower its ratings on Janus over the next 12 months if
debt leverage approaches 5x. This could occur if:
-- EBITDA declines 50%-55% from S&P's base case assumption; or
-- The company pursues shareholder rewards or acquisitions higher
than S&P anticipates.
-- Although unlikely over the next 12 months, S&P could raise its
rating on Janus if it pursues acquisitions that expand its scale
and diversity in line with its 'BB'-rated peers and
-- Adjusted debt leverage remains below 3x; and
-- EBITDA margins remain above 18%.
JASS LLC: Case Summary & Seven Unsecured Creditors
--------------------------------------------------
Debtor: Jass LLC
d/b/a Conoco Truck Stop
3851 Highway 119
Longmont, CO 80504
Business Description: Jass LLC, operating as Conoco Truck Stop,
runs a truck stop in Longmont, Colorado,
offering fuel, parking, and convenience
amenities mainly for commercial truck
drivers and other travelers.
Chapter 11 Petition Date: October 15, 2025
Court: United States Bankruptcy Court
District of Colorado
Case No.: 25-16683
Debtor's Counsel: Gregory K. Stern, Esq.
GREGORY K. STERN, P.C.
53 West Jackson Boulevard
Suite 1442
Chicago, IL 60604
Tel: (312) 427-1558
Email: greg@gregstern.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Navkirat Singh as manager.
A copy of the Debtor's list of seven unsecured creditors is
available for free on PacerMonitor at:
https://www.pacermonitor.com/view/Q4WDOKI/Jass_LLC__cobke-25-16683__0003.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/QWYHWSY/Jass_LLC__cobke-25-16683__0001.0.pdf?mcid=tGE4TAMA
JEREMY KIDO: Seeks Chapter 11 Bankruptcy in California
------------------------------------------------------
Jeremy Kido Investments LLC filed a Chapter 11 bankruptcy in the
Southern District of California bankruptcy court on October 19,
2025. The bankruptcy petition for Jeremy Kido Investments LLC
showed liabilities in the range of $100,001-$1,000,000 and the
number of creditors is in the range of 1-49.
About Jeremy Kido Investments LLC
Jeremy Kido Investments LLC is a single asset real estate company.
Jeremy Kido Investments LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 25-04310) on
October 19, 2025. In its petition, the Debtor reports estimated
assets between $1 million and $10 million and estimated liabilities
between $100,001 and $1 million.
The Debtor is represented by Quintin G. Shammam, Esq.
JSL COMPANIES: Hires Thomsen Law Group as Bankruptcy Counsel
------------------------------------------------------------
JSL Companies, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Ohio to hire Thomsen Law Group, LLC as
counsel.
The firm will render these services:
(a) give the Debtor legal advice with respect to its powers
and duties in the continued operation of its businesses and
management of its properties;
(b) represent the Debtor in connection with any adversary
proceedings which are instituted within this case;
(c) prepare on behalf of the Debtor necessary schedules,
petition, applications, motions, answers, orders, reports,
objections, disclosure statement and plan of reorganization and
other legal documentation in connection with this case;
(d) advise the Debtor with respect to, and assist in the
negotiation and documentation of, cash collateral orders and
related transactions;
(e) review the nature and validity of any liens asserted
against property of the Debtor and advise concerning the
enforceability of such liens;
(f) advise the Debtor regarding its ability to initiate
actions to collect and recover property for the benefit of its
estate;
(g) counsel the Debtor in connection with the formulation,
negotiation and promulgation of a plan of reorganization and
related documents;
(h) advise and assist the Debtor in connection with any
potential property disposition;
(i) advise the Debtor concerning executory contracts and
unexpired lease assumptions, assignments, rejections, lease
restructuring and recharacterization;
(j) assist the Debtor in reviewing, estimating, and resolving
claims asserted by or against its estate;
(k) commence and conduct any and all litigation necessary and
appropriate to assert rights held by the Debtor, protect assets of
its estate, or otherwise further the goal of completing its
successful reorganization;
(l) provide general corporate, litigation and other legal
services for the Debtor as requested; and
(m) perform all other necessary and appropriate legal services
in connection with this Chapter 11 case for and on behalf of the
Debtor.
The firm will be paid at these rates:
Ira Thomsen, Attorney $425 per hour
Denis Blasius, Attorney $375 per hour
Darlene Fierle, Attorney $375 per hour
Administrative $200 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the Petition date, and in the one year prior to the
Petition date, Thomsen Law Group, LLC was provided with the sum of
$26,262.
Ms. Thomsen 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:
Ira H. Thomsen, Esq.
Thomsen Law Group, LLC
140 North Main Street, Suite A
Springboro, OH 45066
Tel: (937) 748-5001
Fax: (937) 404-6630
About JSL Companies, LLC
JSL Companies, LLC doing business as Boat & RV Accessories, is a
retailer of marine and recreational vehicle parts and equipment in
the United States. The Company offers a wide range of products
including boat accessories, RV appliances, HVAC parts, solar power
systems, and power generation equipment. It distributes components
from brands such as Dometic, Atwood, Thetford, and Battery Tender
to boat and RV owners nationwide.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 25-31919) on September
23, 2025. In the petition signed by Joseph Medsker, owner, the
Debtor disclosed up to $1 million in assets and up to $10 million
in liabilities.
Judge Tyson A. Crist oversees the case.
Denis E. Blasius, Esq. at THOMPSEN LAW GROUP, LLC, represents the
Debtor as legal counsel.
JSPEED LLC: Seeks Chapter 7 Bankruptcy in New Jersey
----------------------------------------------------
On October 17, 2025, Jspeed LLC initiated a voluntary Chapter 7
bankruptcy proceeding in the District of New Jersey. The filing
discloses liabilities estimated at $100,001 to $1 million, with
1–49 creditors listed in the petition.
About Jspeed LLC
Jspeed LLC is a limited liability company.
Jspeed LLC sought relief under Chapter 7 of the U.S. Bankruptcy
Code (Bankr. D.N.J. Case No. 25-21026) on October 17, 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 Stacey L. Meisel handles the case.
The Debtor is represented by Michael S. Kopelman, Esq., of Kopelman
& Kopelman LLP.
KABBAGE INC: Sues Former Execs, AmEx to Clawback $746MM in Ch. 11
-----------------------------------------------------------------
Ben Zigterman of Law360 reports that the trustee overseeing the
bankruptcy estate of Kabbage Inc. has sued American Express along
with several of Kabbage's former executives and shareholders to
claw back $746 million linked to the companies' 2020 merger.
The complaint alleges that the payment to AmEx was a fraudulent
transfer that stripped Kabbage of assets before its eventual
collapse, depriving creditors of repayment.
Court filings claim that AmEx acquired Kabbage's profitable
operations while the remaining entity, burdened with debt, later
filed for bankruptcy. The estate argues that former insiders
facilitated the transaction in a way that unfairly benefited them
and AmEx, leaving the estate insolvent and unable to satisfy
creditor claims.
The lawsuit, filed in Delaware, represents one of the largest
post-merger clawback efforts in recent years. It reflects
heightened attention to corporate transactions preceding insolvency
and signals that bankruptcy trustees are willing to challenge
complex M&A deals when they disadvantage creditors, according to
report.
About Kabbage Inc.
Founded in 2010 and headquartered in Atlanta, Ga., Legacy Kabbage,
a predecessor of Kabbage Inc. (doing business as KServicing) --
http://www.kservicing.com/-- was one of the leading fintech
providers of working capital to small businesses for over a
decade.
Legacy Kabbage began as a proprietary online lending platform for
small businesses, providing loan services to over 250,000 American
small businesses, many of which were businesses that struggled to
receive adequate funding through traditional banking institutions.
From 2020-2021, the company provided and facilitated necessary
funding to small business owners through PPP loans during the
COVID-19 pandemic. The company's existing technology infrastructure
spearheaded its PPP work, which led to a total of $7 billion in
loans being originated by the company.
The origination and servicing of PPP Loans and small business loans
to eligible borrowers was critical during a time of unprecedented
health and economic uncertainty brought about by the COVID-19
pandemic. On Aug. 16, 2020, much of the company's business was sold
to American Express Travel Related Services Company, Inc. As a
result of the merger, KServicing now operates in a limited capacity
as (i) a servicer and subservicer of PPP Loans, (ii) a software
services provider for lenders of PPP Loans, and (iii) a servicer of
a minor portfolio of non-PPP small business loans.
To implement the wind down of their businesses, on Oct. 3, 2022,
Kabbage, Inc. d/b/a KServicing and certain of its affiliates each
filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. D. Del. Lead Case No.
22-10951). Judge Craig T. Goldblatt oversees the cases.
Kabbage Inc. estimated $500 million to $1 billion in assets and
debt as of the bankruptcy filing.
The Debtors tapped Weil, Gotshal & Manges, LLP as general counsel;
Richards, Layton & Finger, PA as local counsel; AlixPartners, LLC
as financial advisor; KPMG International Limited as fraud review
services provider; Jones Day, LLP as government investigations
counsel; and Marc Sullivan, managing director at Phoenix Executive
Services, LLC, as chief financial officer. Omni Agent Solutions,
Inc. is the Debtors' claims agent and administrative advisor.
Greenberg Traurig, LLP, serves as counsel to the Debtors' board of
directors.
KALIBER ELECTRIC: Hires Kaplan Johnson Abate & Bird LLP as Counsel
------------------------------------------------------------------
Kaliber Electric, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Kentucky to hire Kaplan Johnson Abate &
Bird LLP as counsel.
The firm will render these services:
a. give legal advice with respect to the Debtor's powers and
duties as debtor in possession in the continued management of its
financial affairs and estate assets;
b. take all necessary action to protect and preserve the
estate, including the prosecution of actions on behalf of the
Debtor, the defense of any action commenced against the Debtor,
negotiations concerning all litigation in which the Debtor is
involved, if any, and examination of proofs of claims;
c. prepare on behalf of the Debtor all necessary motions,
answers, orders, reports, and other legal papers in connection with
the administration of the Debtor's estate; and
d. perform any and all other legal services for the Debtor in
connection with this chapter 11 case and the formulation and
implementation of Debtor's chapter 11 plan.
The firm will be paid at these rates:
Attorneys $225 to $625 per hour
Paraprofessionals $125 to $165 per hour
The firm received a retainer in the amount of $15,000.
J. Gabriel Dennery, Esq., an attorney at Kaplan Johnson Abate &
Bird, disclosed in a court filing that the firm is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Charity S. Bird, Esq.
Tyler Yeager, Esq.
J. Gabriel Dennery, Esq.
Kaplan Johnson Abate & Bird LLP
710 W. Main St., 4th Floor
Louisville, KY 40202
Tel: (502) 416-1630
Fax: (502) 540-8282
Email: cbird@kaplanjohnsonlaw.com
tyeager@kaplanjohnsonlaw.com
gdennery@kaplanjohnsonlaw.com
About Kaliber Electric, LLC
Kaliber Electric, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Ken. Case No.
25-32207) on September 11, 2025, listing up to $50,000 in assets
and $500,001 to $1 million in liabilities.
Judge Alan C Stout presides over the case.
Charity S Bird, Esq. at Kaplan Johnson Abate & Bird LLP represents
the Debtor as counsel.
KBI 2015 TX: Seeks to Hire Spector & Cox PLLC as Legal Counsel
--------------------------------------------------------------
KBI 2015 TX LP seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Texas to hire Spector & Cox, PLLC as its
counsel.
The firm's services include:
(a) providing legal advice with respect to their powers and
duties as Debtor-in-possession;
(b) preparing and pursuing confirmation of a plan and approval
of a disclosure statement to the extent required;
(c) preparing on behalf of the Debtor necessary applications,
motions, answers, orders, reports and other legal papers;
(d) appearing in Court and protecting the interests of the
Debtor before the Court; and
(e) performing all other legal services for the Debtor which
may be necessary and proper in these proceedings.
The firm will be paid at these rates:
Howard Marc Spector $435 per hour
Other member $395 per hour
Paralegals $150 per hour
The firm tendered a retainer in the amount of $50,000.
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Howard Marc Spector, Esq., a partner at Spector & Cox, 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:
Howard Marc Spector, Esq.
Spector & Cox, PLLC
Banner Place
12770 Coit Road, Suite 850
Dallas, TX 75251
Tel: (214) 365-5377
Fax: (214) 237-3380
Email: hspector@spectorcox.com
About KBI 2015 TX LP
KBI 2015 TX LP filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tex. Case No.
25-42973) on October 3, 2025, listing up to $50,000 in assets and
$1,000,001 to $10 million in liabilities.
Howard Marc Spector, Esq. at Spector & Cox, PLLC represents the
Debtor as counsel.
LAGUNA ART: Involuntary Chapter 11 Case Summary
-----------------------------------------------
Alleged Debtor: Laguna Art District Complex, LLC
520 Newport Center Drive
Suite 480
Newport Beach CA 92660
Case No.: 25-12902
Business Description: Laguna Art District Complex, LLC is
categorized as a single-asset real estate
debtor pursuant to 11 U.S.C. Section
101(51B).
Involuntary Chapter
11 Petition Date: October 15, 2025
Court: United States Bankruptcy Court
Central District of California
Judge: Hon. Scott C Clarkson
Petitioners' Counsel: David Haberbush, Esq.
HABERBUSH, LLP
444 West Ocean Blvd., Suite 1400
Long Beach, CA 90802
Tel: 562-435-3456
Email: dhaberbush@lbinsolvency.com
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/UNZ2DRI/Laguna_Art_District_Complex_LLC__cacbke-25-12902__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
Specialty DIP LLC $1,500,100
5175 Princess Anne Rd
La Canada CA 91011
Vierergruppe Management Inc. $155,000
1932 E. Deere Ave Suite 150
Santa Ana CA 92705
Coastline Santa Monica Group LLC $30,017,726
520 Newport Center Drive
Newport Beach CA 92660
Moises Camacho $840
LAGUNA FESTIVAL: Involuntary Chapter 11 Case Summary
----------------------------------------------------
Alleged Debtor: Laguna Festival Center, LLC
520 Newport Center Drive
Suite 480
Newport Beach CA 92660
Case No.: 25-12895
Business Description: Laguna Festival Center designates itself a
single-asset real estate debtor within the
meaning of 11 U.S.C. Section 101(51B).
Involuntary Chapter
11 Petition Date: October 15, 2025
Court: United States Bankruptcy Court
Central District of California
Petitioners' Counsel: David Haberbush, Esq.
HABERBUSH, LLP
444 West Ocean Blvd., Suite 1400
Long Beach, CA 90802
Tel: 562-435-3456
Email: dhaberbush@lbinsolvency.com
A full-text copy of the Involuntary Petition is available for free
on PacerMonitor at:
https://www.pacermonitor.com/view/VILQV3Y/Laguna_Festival_Center_LLC__cacbke-25-12895__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
Specialty DIP LLC $1,500,100
5175 Princess Anne Rd
La Canada CA 91011
Vierergruppe Management Inc. $155,000
1932 E. Deere Ave Suite 150
Santa Ana CA 92705
Coastline Santa Monica Investments LLC $30,017,726
520 Newport Center Drive
Newport Beach CA 92660
LEGACY DRAYAGE: Court OKs DIP Financing From Working Capital
------------------------------------------------------------
Legacy Drayage, Inc. received interim approval from the U.S.
Bankruptcy Court for the Central District of California, Los
Angeles Division, to use cash collateral and obtain
debtor-in-possession financing from Working Capital Finance Corp.
to get through bankruptcy.
This financing comes in the form of a new factoring agreement under
which Legacy Drayage offers to sell, and Working Capital Finance
Corp. agrees to purchase, up to $1.5 million in accounts
receivable.
Pursuant to the interim order signed by Judge Barry Russell, Legacy
Drayage is initially allowed to sell up to $500,000 in accounts
receivable to Working Capital Finance from the petition date
through the final hearing on November 4.
The financing will be secured by liens on substantially all of
Legacy Drayage's assets, excluding Chapter 5 causes of actions. In
addition, Working Capital Finance will be granted superpriority
administrative claims.
The financing has an initial term of 12 months with 12-month
renewals and 60-day notice required for termination.
Legacy Drayage said the financing is critical to its continued
operations as its former factor, Alterna Capital Solutions, ceased
funding after the bankruptcy filing but continued to collect
payments on receivables, leaving it in a cash crisis. Alterna
collected approximately $720,000 post-petition but provided no new
funding, forcing Legacy Drayage to seek bridge financing and
ultimately secure a new factor.
As of the petition date, Legacy Drayage's primary assets included
cash, accounts receivable (some factored to Alterna and others
purportedly sold to Global Merchant Cash Inc.), and various
vehicles, furniture, fixtures, and equipment—some owned outright,
some leased, and some subject to financing. Of the accounts
receivable, approximately $735,331 had been factored to Alterna and
remained outstanding, and another $487,994 had not been factored
and remained in Legacy Drayage's possession. Legacy Drayage has
historically enjoyed a 99% collection rate on its accounts
receivable over the past two years.
After the petition date, Legacy Drayage continued to collect
non-factored accounts receivable and applied all collections to
operating expenses. As of October 7, approximately $258,000 in
non-factored accounts receivable remain uncollected. Prior to the
filing, Legacy Drayage obtained a UCC report showing liens recorded
with the California Secretary of State. The report reflects eight
active, non-terminated UCC-1 financing statements filed by Toyota
Industries Commercial Finance, Inc., Alterna (via First Corporate
Solutions), C.H. Brown Co., LLC, Alliance Funding Group (via
Corporation Service Company), and Global.
Review of the UCC filings and related documents indicates that
Toyota, C.H. Brown, and Alliance hold purchase-money security
interests or lease liens limited to specific vehicles or equipment,
not general assets. Only Alterna and Global assert liens on Legacy
Drayage's cash collateral, general receivables, and other
non-specific assets.
A copy of the interim order is available at https://is.gd/Vjykjt
from PacerMonitor.com.
Legacy Drayage was founded in July 2022 to provide
port-to-warehouse logistics services in the Los Angeles area.
Initially funded by its chief executive officer and sole
shareholder Walter Umana, Legacy Drayage rapidly scaled operations
amid a post-pandemic logistics boom. In November 2022, Legacy
Drayage entered into a 63-month lease for a large yard and
warehouse facility in Carson, California, leased from Lift II
Avalon LLC.
The lease included provisions requiring Lift II to make substantial
repairs, particularly to asphalt and concrete surfaces. However,
Lift II failed to fulfill these obligations, which ultimately led
to damages of customer goods and the loss of key clients. In
response to market downturns and these lease-related challenges,
Legacy and Lift II entered into two lease amendments to reduce rent
and re-affirm Lift II’s repair obligations, but the cost of the
lease remained significantly above market.
Despite growing its revenue from $4.9 million in 2023 to $11.1
million in 2024, Legacy Drayage began experiencing negative cash
flow due to high fixed costs, primarily from the Avalon Lease, and
Lift II’s failure to repair the yard. In 2025, while Lift II
sought refinancing, it pressured Legacy Drayage into signing an
estoppel certificate falsely stating that Lift II had not breached
the lease, based on promises of $1 million in repairs and further
rent relief. These promises turned out to be knowingly false, and
shortly after obtaining the estoppel certificate, Lift II took
aggressive legal actions against Legacy Drayage and Mr. Umana,
issuing a three-day notice to quit, filing an unlawful detainer
lawsuit for $1.68 million in back and future rent, and separately
suing Mr. Umana for $9.95 million under his personal guaranty. In
retaliation, Legacy Drayage filed its own fraud and breach of
contract lawsuit against Lift II, seeking damages and declaratory
relief.
Faced with escalating operational costs, including rent obligations
under the Avalon lease, the need to defend the unlawful detainer
action, the need to pursue the fraud lawsuit against Lift II, and
the mounting legal fees associated with both, Legacy Drayage became
unable to pay its debts as they came due.
Nevertheless, Legacy Drayage has taken steps to reduce its
operating expenses in order to create a path toward profitability.
Most significantly, on or about July 29, Legacy Drayage entered
into a commercial lease agreement, as amended, with Pacific
Industrial Partners, LLC and Cline Industrial Holdings, LLC. The
rental rate under the Santa Fe lease is approximately $0.50 per
square foot—only about half of the rent per square foot for the
damaged Avalon premises under the Avalon lease.
Following execution of the Santa Fe lease, and no longer needing
the Avalon premises, the Legacy Drayage vacated and surrendered
possession of the Avalon premises to Lift II on August 30, just 10
days after the petition date. Legacy Drayage acted quickly to
vacate in order to minimize its rent liability at both locations
and avoid any claim for holdover rent by Lift II. While Legacy
Drayage worked diligently to vacate earlier, it was unable to do so
until August 30 due to the substantial amount of property that had
to be moved.
As of the petition date, Legacy Drayage had approximately 116
trucks and trailers, approximately 90 customer containers, more
than 1,652 pallets of customer goods, and a significant amount of
furniture, fixtures, and heavy equipment at the Avalon premises,
which spans 5.1 acres. The relocation to the Santa Fe premises was
a massive logistical effort requiring numerous trips and took
longer than expected.
Although market conditions in the transportation and logistics
industry have not materially improved, the dramatic cost savings
from the Santa Fe lease representing a significant reduction in
Legacy Drayage's largest fixed expense, along with the surrender of
the Avalon lease, gives Legacy Drayage confidence that it can
return to profitability and reorganize effectively. While the
outlook for 2026 is cautious, Legacy Drayage is optimistic that
broader economic stability, the potential for lower interest rates,
reduced regulation, and the closure of other logistics companies
(which has resulted in new customer opportunities) will enhance its
revenue and financial performance.
In light of these efforts and in the best interests of its
creditors, Legacy Drayage filed for Chapter 11 bankruptcy
protection on August 20. This case has allowed Legacy Drayage a
critical breathing spell from creditor actions as it implements the
above-described cost-saving measures and prepares a feasible plan
of reorganization. Legacy Drayage believes that the strategy of
relocating, reducing overhead, and restructuring operations will
lead to a leaner, focused, and ultimately profitable business,
benefitting all stakeholders.
About Legacy Drayage Inc.
Legacy Drayage, Inc provides trucking, freight logistics, and
transportation services, offering solutions such as drayage,
transloading, hazardous materials handling, overweight cargo
transport, and over-the-road trucking. The Company serves customers
with route planning, warehousing, and logistics management, and
emphasizes technology-driven operations to improve service levels
and delivery efficiency. It also engages in zero-emissions trucking
and logistics initiatives as part of its operations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-17226) on August 20,
2025. In the petition signed by Walter Umana, president and chief
executive officer, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge Barry Russell oversees the case.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo & Golubchik, LLP,
represents the Debtor as legal counsel.
LEGACY DRAYAGE: Hires 4 Points Consultants as Financial Advisor
---------------------------------------------------------------
Legacy Drayage, Inc., seeks approval from the U.S. Bankruptcy Court
for the Central District of California to hire 4 Points Consultants
as financial advisor.
The firm will render these services:
a. assist the Debtor in preparing its Schedules of Assets and
Liabilities, Statement of Financial Affairs, and related reporting
documents;
b. assist the Debtor in preparing and maintaining budgets and
cash flow projections;
c. assist the Debtor in preparing reports acceptable to the
Court and the U.S. Trustee including, but not limited to, Monthly
Operating Reports;
d. assist the Debtor in analyzing potential factor, loan,
and/or other financing arrangements; and
e. engage in such other financial and administrative
activities as necessary to assist the Debtor in its reorganization
efforts.
Gerald Barth will bill his time for services provided to the Debtor
on an hourly basis at a rate of $300/hour. 4 Points Consultants
will also bill Debtor for any out-of-pocket travel costs incurred
to meet with Debtor at its offices.
Mr. Barth, managing principal of 4 Points Consultants, assured the
court that 4 Points Consultants is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Gerald Barth, CPA, CFE
4 Points Consultants
1947 Cimarron Circle
Steamboat Springs, CO 80487
About Legacy Drayage Inc.
Legacy Drayage, Inc provides trucking, freight logistics, and
transportation services, offering solutions such as drayage,
transloading, hazardous materials handling, overweight cargo
transport, and over-the-road trucking. The Company serves customers
with route planning, warehousing, and logistics management, and
emphasizes technology-driven operations to improve service levels
and delivery efficiency. It also engages in zero-emissions trucking
and logistics initiatives as part of its operations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-17226) on August 20,
2025. In the petition signed by Walter Umana, president and chief
executive officer, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge Barry Russell oversees the case.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo & Golubchik, LLP,
represents the Debtor as legal counsel.
LEISURE INVESTMENTS: Court OKs Terra's Takeover of Miami Seaquarium
-------------------------------------------------------------------
Katherine Kallergis of The Real Deal reports that the Miami
Seaquarium is set for a new beginning after a bankruptcy court
approved Terra's lease takeover of the landmark Key Biscayne
attraction.
Terra, based in Coconut Grove and led by David Martin, agreed to a
$22.5 million deal for the 38-acre property owned by Miami-Dade
County, according to the report. The transaction still awaits
county commission approval.
Terra's affiliate, Resilient Aquarium LLC, plans to invest as much
as $100 million into redeveloping the site into a mixed-use
waterfront destination. The project includes new dining, retail, a
350-slip marina, and an accredited aquarium emphasizing
conservation and education. Historic structures, such as the
Seaquarium dome and Flipper House, will be restored and used as
event spaces.
"This ruling affirms that our vision and capacity to execute is the
right path forward for the Seaquarium," Martin said. The
redevelopment will mark a shift away from animal entertainment,
with the current operator arranging relocations for remaining
marine mammals.
MS Leisure Company, the current operator, filed for Chapter 11
bankruptcy in April following years of complaints over facility
conditions and animal care. The lease transfer is expected to close
within 30 days of county approval and no later than May 2026,
signaling the end of a decades-old chapter for the 1954-established
attraction.
About Leisure Investments Holdings
Leisure Investments Holdings LLC and affiliates are operating under
the name "The Dolphin Company," manage over 30 attractions,
including dolphin habitats, marinas, water parks, and adventure
parks, located in eight countries across three continents. Their
primary operations are based in Mexico, the United States, and the
Caribbean, with locations in Jamaica, the Cayman Islands, the
Dominican Republic, and St. Kitts. These attractions are home to
approximately 2,400 animals from more than 80 species of marine
life, including a variety of marine mammals such as dolphins, sea
lions, manatees, and seals, as well as birds and reptiles. As of
2023, the marine mammal population at the Debtors' parks includes
roughly 295 dolphins, 51 sea lions, 18 manatees, and 18 seals.
Leisure Investments Holdings LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case 25-10606) on
March 31, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $100 million and $500 million each.
Honorable Bankruptcy Judge Laurie Selber Silverstein handles the
case.
The Debtors tapped Robert S. Brady, Esq., Sean T. Greecher, Esq.,
Allison S. Mielke, Esq., and Jared W. Kochenash, Esq. as counsels.
The Debtors' restructuring advisor is Riveron Management Services,
LLC. The Debtors' claims and noticing agent is Kurtzman Carson
Consultants, LLC dba Verita Global.
LIFESCAN GLOBAL: Defends Ch. 11 Plan Prior Confirmation Hearing
---------------------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that
LifeScan Global Corp., a leading blood-glucose monitor
manufacturer, has asked the Texas bankruptcy court to confirm its
Chapter 11 restructuring plan, which aims to cut approximately $1.7
billion in debt and secure $75 million in exit financing.
The company said the plan will provide essential liquidity to
stabilize operations and support its transition out of bankruptcy,
according to the report.
As part of the proposal, LifeScan intends to eliminate more than
three-quarters of its existing liabilities by converting debt into
equity, effectively handing ownership to new stakeholders. The
company said this structure will leave it with a leaner balance
sheet and position it for long-term financial sustainability.
About LifeScan Global Corporation
LifeScan delivers personalized health, wellness, and digital
solutions to individuals living with diabetes. Since 1981, LifeScan
has advanced glucose care and diabetes management with pioneering
technologies and new products, and is actively engaged in
designing, developing, manufacturing, and marketing devices,
software, and applications. Its comprehensive portfolio of
diabetes-related products and services includes blood glucose
monitoring devices, blood glucose test strips, lancing devices, and
digital applications.
LifeScan Global Corp. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-90259) on July
15, 2025. As of the Petition Date, the Debtors have approximately
$786 million assets and approximately $1.7 billion in liabilities.
Judge Alfredo R Perez presides over the case.
Porter Hedges LLP is the Debtor's legal counsel, Milbank LLP is
co-counsel, and PJT Partners LP is the investment banker.
LIGHTHOUSE RESOURCES: May Deny Atlantic's Motion for Clarification
------------------------------------------------------------------
Judge Craig T. Goldblatt of the United States Bankruptcy Court for
the District of Delaware said he is inclined to deny Atlantic
Specialty Insurance Company's motion for clarification in the
adversary proceeding captioned as LIGHTHOUSE RESOURCES INC.,
Plaintiff, v. ATLANTIC SPECIALTY INSURANCE COMPANY, Defendant, Adv.
Proc. No. 24-50144-CTG (D. Del.).
Lighthouse sued Atlantic Specialty alleging breach of a "sinking
fund agreement" that was incorporated into the confirmed plan in
Lighthouse's bankruptcy case. Atlantic Specialty counterclaimed
against Lighthouse, and cross-claimed against Black Butte,
asserting claims of breach of contract, in quantum meruit, and
otherwise. Lighthouse and Black Butte each moved to dismiss
Atlantic Specialty's claims. This Court granted those motions. The
order did not address the question whether the dismissal was with
or without prejudice -- expressly leaving that question to be
addressed if and when a motion for leave to amend was filed.
Atlantic Specialty has filed a motion for clarification. The thrust
of the motion is that the dismissal order should state whether it
is with or without prejudice. It contends that the failure to so
specify creates ambiguity about whether the dismissal does or does
not preclude it from filing a separate lawsuit in another
jurisdiction under an indemnity agreement.
The Court believes that the motion proceeds from several
misunderstandings.
Atlantic Specialty further argues that clarification is appropriate
so that it would not be precluded from filing a separate lawsuit in
a different jurisdiction for indemnity.
According to Judge Goldblatt, the Court offers no view on whether
Atlantic Specialty's claim for indemnity can proceed separately in
another jurisdiction, or whether it arises out of the same
transaction or occurrence as the events pled in its claims in this
case, such that bringing a separate lawsuit is improper claim
splitting barred by the doctrine of claim preclusion. That issue
would properly be before the subsequent court if such a claim were
brought and a preclusion defense asserted. In any event, if such a
preclusion defense were otherwise properly available on the merits,
there can be no serious argument that it would be appropriate for
this Court to interfere with the ordinary operation of preclusion
principles by declaring that the dismissal of the counterclaim is
"without prejudice."
A copy of the Court's Preliminary Observations is available at
https://urlcurt.com/u?l=t3Su30 from PacerMonitor.com.
About Lighthouse Resources
Lighthouse Resources Inc. is an owner and operates two coal mines
located in Wyoming and Montana, delivering low sulfur,
subbituminous coal to both domestic and export customers. It also
owns and operates the Millennium Bulk Terminal in Longview,
Washington. The Company is widely recognized for its extraordinary
performance in both safety and environmental stewardship. Its
flagship project is the development of a trade route for coal from
the Rocky Mountain region of the United States to demand centers in
Asia.
Utah-based Lighthouse Resources and 13 subsidiaries, including
Decker Coal Company, filed for Chapter 11 bankruptcy protection
(Bankr. D. Del. Case No. 20-13056) on Dec. 3, 2020.
Lighthouse Resources was estimated to have $100 million to $500
million in assets and liabilities as of the filing.
The Debtors tapped JACKSON KELLY PLLC as general bankruptcy counsel
and BDO USA LLP as restructuring advisor. POTTER ANDERSON &
CORROON LLP is the local bankruptcy counsel. LANG LASALLE
AMERICAS, INC., is the marketer and seller of assets related to the
dock facility owned by Millennium Bulk Terminals-Longview, LLC.
ENERGY VENTURES ANALYSIS is the marketer and seller of Debtors'
coal mining assets. STRETTO is the claims agent.
LINQTO INC: Court Denies Shareholders' Bid to Appoint Equity Panel
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas denied
a bid by the ad hoc group of Linqto Inc. shareholders to appoint an
official equity committee in the company's Chapter 11 case.
The ad hoc group on Sept. 26 sought the appointment of an equity
committee on grounds that Linqto and its affiliates are not
insolvent.
The group argued, among other things, that the companies have no
pre-bankruptcy debt, possess reserved securities, and hold $19
million in cash proceeds, which can be used to fund their
bankruptcy cases.
In response, Linqto and the official committee of unsecured
creditors opposed the motion, arguing that the combined impact of
significant customer claims, regulatory penalties and case costs
renders the companies insolvent despite the lack of pre-bankruptcy
funded debt.
About Linqto Inc.
Linqto Inc. is a San Jose-based financial technology company
operating in the alternative investment space.
Linqto Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Texas Case No. 25-90187) on July 7, 2025. The
case is jointly administered with the Chapter 11 cases of Linqto
Texas, LLC, Linqto Liquidshares, LLC and Linqto Liquidshares
Manager, LLC under case number 25-90186. In its petition, Linqto
Inc. reported estimated assets and liabilities between $500 million
and $1 billion.
Judge Alfredo R. Perez oversees the cases.
The Debtors tapped Gabrielle A. Hamm, Esq. at Schwartz, PLLC as
legal counsel; Breakpoint Partners, LLC as restructuring advisor;
ThroughCo Communications, LLC as public relations agent; and Epiq
Corporate Restructuring, LLC as claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Orrick, Herrington & Sutcliffe, LLP.
Sandton Capital Solutions Master Fund VI, LP, as DIP Lender, is
represented by its attorneys:
Kristen L. Perry, Esq.
Faegre Drinker Biddle & Reath, LLP
2323 Ross Avenue, Suite 1700
Dallas, TX 75201
Tel: (469) 357-2500
Fax: (469) 327-0860
Email: kristen.perry@faegredrinker.com
-- and --
Richard J. Bernard, Esq.
Faegre Drinker Biddle & Reath, LLP
1177 Avenue of the Americas, 41st Floor
New York, NY 10036
Tel: (212) 248-3263
Fax: (212) 248-3141
Email: richard.bernard@faegredrinker.com
-- and --
Michael R. Stewart, Esq.
Adam C. Ballinger, Esq.
Faegre Drinker Biddle & Reath, LLP
2200 Wells Fargo Center
90 South 7th Street
Minneapolis, MN 55402
Telephone: (612) 766-7000
Facsimile: (612) 766-1600
Email: michael.stewart@faegredrinker.com
adam.ballinger@faegredrinker.com
Sandton may also be reached through:
Robert Rice
Sandton Capital Partners
16 West 46th Street, 11th Floor
New York, NY 10036
Direct: 310-600-3980
Office: 212-444-7200
LUXURY TRANSPORTATION: L. Todd Budgen Named Subchapter V Trustee
----------------------------------------------------------------
The Acting U.S. Trustee for Region 21 appointed L. Todd Budgen,
Esq., a practicing attorney in Longwood, Fla., as Subchapter V
trustee for Luxury Transportation Group Incorporated.
Mr. Budgen will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Budgen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
L. Todd Budgen, Esq.
P.O. Box 520546
Longwood, FL 32752
Tel: (407) 232-9118
Email: Todd@C11Trustee.com
About Luxury Transportation Group Incorporated
Luxury Transportation Group Incorporated provides luxury chauffeur
and limousine services in Florida, operating primarily in Orlando,
Miami, and Tampa. It offers airport transfers, theme park shuttles,
and event transportation.
Luxury Transportation Group filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
25-06551) on October 13, 2025, listing up to $50,000 in assets and
between $1 million and $10 million in liabilities. Aleksey
Golovnitskiy, president of Luxury Transportation Group, signed the
petition.
Daniel A. Velasquez, Esq., at Latham, Luna, Eden & Beaudine, LLP
represents the Debtor as legal counsel.
MARI ARI: Unsecureds to Get Share of Income for 60 Months
---------------------------------------------------------
Mari Ari International, Inc. filed with the U.S. Bankruptcy Court
for the Southern District of Texas a Plan of Reorganization under
Subchapter V dated October 13, 2025.
The Debtor operates a retail store which sells wigs, hairpieces,
hair extensions, and related products. Debtor's operations began on
or about 2007. Debtor operates from a single location at 8401
Westheimer Rd, Ste 280, Houston, TX 77063.
The Debtor also has online sales and offers in-person trainings in
the care and maintenance of hair products. On or about 2024, due to
a decrease in sales, the Debtor borrowed funds and the repayment of
the loans created an unmanageable financial condition for the
Debtor. The Debtor filed this case to reorganize and continue with
its operations.
This Plan of Reorganization proposes to pay Debtor's creditors from
the cash flow generated in the ordinary course of the Debtor's
business after confirmation.
Class 12 consists of all other non-priority unsecured claims
allowed under Section 502 of the Code. The aggregate amount of
Class 12 claims is approximately $968,679.27. The Debtor will pay
the projected disposable income in the amounts as set forth on the
projections for a period of sixty months following the Effective
Date to creditors in this class with allowed claims in the amounts
set forth on the projections with this plan. Debtor may pay these
amounts in quarterly distributions. This Class is impaired
Class 13 consists of the equity security holders of the Debtor. The
equity security holders will retain the interests in the Debtor.
The Debtor will retain the property of the bankruptcy estate. The
Debtor will make the payments as set forth in the Projections to
either the creditors or to the Subchapter V Trustee.
The officers and directors of the Debtor are anticipated to remain
the same after the Effective Date. Miyoung Lee will continue as the
Sole Owner and President. Sean Lee will continue to operate and
manage the Debtor under the direction of Miyoung Lee.
A full-text copy of the Plan of Reorganization dated October 13,
2025 is available at https://urlcurt.com/u?l=se77ic from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Reese W. Baker, Esq.
Baker & Associates
950 Echo Lane Ste. 300
Houston, TX 77024
Telephone: (713) 869-9200
Facsimile: (713) 869-9100
Email: courtdocs@bakerassociates.net
About Mari Ari International Inc.
Mari Ari International, Inc. doing business as Mari Ari Hair, sells
human hair extensions, wigs, and related accessories. The Company
operates a retail boutique in Houston, Texas, offering products and
styling services to individual and professional clients. Its
product line features both synthetic and human hair options with
various styles, colors, and types.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-34029) on July 16,
2025. In the petition signed by Sean Lee, authorized representative
of the Debtor, the Debtor disclosed up to $1 million in assets and
up to $10 million in liabilities.
Judge Eduardo V. Rodriguez oversees the case.
Reese Baker, Esq., at Baker & Associates, represents the Debtor as
legal counsel.
MEMSTAR USA: Trade Unsecured Claims Will Get 50% of Claims in Plan
------------------------------------------------------------------
Memstar USA Inc., submitted a First Amended and Modified Combined
Disclosure Statement and Plan of Liquidation dated October 13,
2025.
The Plan contemplates a liquidation of the Debtor and its Estate.
The primary objective of the Plan is to maximize the value of
recoveries to all Holders of Allowed Claims and to distribute all
property of the Estate that is or becomes available for
distribution generally in accordance with the priorities
established by the Bankruptcy Code.
After Memstar USA, Inc. filed the Combined Disclosure Statement and
Chapter 11 Plan of Liquidation on June 3, 2025, an approximately
$2.2 million in additional claims were filed in the bankruptcy case
before the June 17, 2025 general claims bar date.
After extensive negotiations, the Debtor has been able to reduce
those additional claims by $1.5 million. A creditor filed an
objection to approval of the Disclosure Statement and an objection
to confirmation of the Plan. While various creditors voted in favor
of the Plan, certain other creditors voted against confirmation of
the Plan.
The Debtor has negotiated with the objecting creditors to modify
the Disclosure Statement and Plan in an effort to resolve the
objections and obtain the consent of the creditors. The Debtor
believes that the following First Amended and Modified Combined
Disclosure Statement and Chapter 11 Plan of Liquidation of Memstar
USA, Inc. is acceptable to the dissatisfied creditors and
represents a consensual Plan with full creditor support.
During the period that the Debtor was negotiating with the
objecting creditors, the Debtor also reached an agreement reducing
the amount of various secured and unsecured claims. The Debtor also
reached agreement with CEPL that its claims are unsecured and to be
treated in Class 4. The Debtor has, through this process been able
to streamline the liquidation of the Debtor's estate and eliminate
all Chapter 5 actions claims (preferences and fraudulent transfers)
and causes of action previously preserved in the earlier version of
the proposed Plan. This will reduce the cost of liquidation and
expedite the return to creditors.
The Debtor, in this Modified Plan, has segregated certain creditors
previously jointly categorized in the sole the unsecured class into
two separate classes. The third party trade creditor claims are now
treated in Class 3 and will receive an anticipated distribution of
50%. The related party unsecured creditor class will be treated in
Class 4 and receive an approximate 43% distribution. The Debtor is
anticipating making distributions in 2025 and is moving under
Bankruptcy Rule 3020(e) for the Plan Confirmation Order to be
effective immediately.
Class 3 consists of all Trade Unsecured Claims. In full and final
satisfaction of each Allowed General Unsecured Claim, the Holder of
such Claim shall receive fifty percent of its Allowed claim in full
and final satisfaction of such Holder's Allowed Claim. Class 3
Trade Unsecured Claims are impaired; Holders of such Claims are
entitled to vote on the Plan.
Class 4 consists of all Related Party Unsecured Claims. In full and
final satisfaction of each Allowed General Unsecured Claim, the
Holder of such Claim shall receive approximately forty-three
percent of its Allowed claim in full and final satisfaction of such
Holder's Allowed. Class 4 Related Party Unsecured Claims are
impaired; Holders of such Claims are entitled to vote on the Plan.
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 and after the Effective Date, the Disbursing Agent will, among
other things, (i) administer, monetize and liquidate Assets and,
(ii) make all Distributions in accordance with the Plan. The
Disbursing Agent shall be authorized to take such actions without
further order of the Bankruptcy Court; provided, however, the
Disbursing Agent may seek such Bankruptcy Court authority as the
Disbursing Agent, in its absolute discretion, deems necessary or
appropriate.
This Plan incorporates a motion under Bankruptcy Rule 9019 to fully
and finally settle and compromise any Claim or Cause of Action
against a) the CEPL Parties; b) Amerisource; and c) the ad valorem
tax claimants. As set forth herein above, the Debtor has resolved
its Claims and Causes of Action that could have arisen prior to the
Effective Date, including any oral or written agreement between the
Debtor and the CEPL Parties.
The Debtor and the CEPL Parties agree that they release any Claims
or Causes of Action that could have arisen prior to the Effective
Date, including but not (limited to, any claims related to any oral
or written agreements between the Debtor and the CEPL Parties. The
secured claim of Amerisource has been reduced and the claims of the
ad valorem tax claimants have been withdrawn.
A full-text copy of the First Amended and Combined Disclosure
Statement and Plan dated October 13, 2025 is available at
https://urlcurt.com/u?l=d0CEXd from PacerMonitor.com at no charge.
Counsel to the Debtor:
Michael J. Durrschmidt, Esq.
Kim E. Lewinski, Esq.
DYKEMA GOSSETT PLLC
5 Houston Center
1401 McKinney Street, Suite 1625
Houston, TX 77010
Telephone: (713)-904-6874
Facsimile: (855) 262-3749
Email: mdurrschmidt@dykema.com
Email: klewinski@dykema.com
About Memstar USA Inc.
Memstar USA Inc. owns the property located at 3655 Pollock Drive,
Conroe, TX 77303. The Property encompasses 10 acres of land, a
41,000 sq. ft. manufacturing plant, and a 4,500 sq. ft. office
building. The current value of the Property is estimated at $7.5
million.
Memstar USA Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-30764) on February 7,
2025. In its petition, the Debtor reports total assets of
$8,712,000 and total liabilities of $10,547,608.
The Debtor is represented by Michael J. Durrschmidt, Esq. at DYKEMA
GOSSETT PLLC.
MERCER INTERNATIONAL: Angel Oak Marks $250,000 Note at 24% Off
--------------------------------------------------------------
Angel Oak Strategic Credit Fund has marked a $250,000 senior note
issued by Mercer International, Inc., with a 5.13% coupon rate and
a maturity date of February 1, 2029, to market at $189,518, or 76%
on the dollar, according to the Fund's Semi-Annual Report on Form
N-CSRS for the period ended July 31, 2025, delivered to the
Securities and Exchange Commission on October 6.
Angel Oak may be reached at:
Ward Bortz, President
3344 Peachtree Rd. NE, Suite 1725
Atlanta, GA 30326
The Fund is advised by:
Stephen T. Cohen, Esq.
Matthew E. Barsamian, Esq.
Dechert LLP
1900 K Street NW
Washington, DC 20006
Mercer International Inc. produces pulp, solid wood products, and
biomass-based energy, and is headquartered in Vancouver, Canada.
The bond is a fixed-income investment that pays a semi-annual
coupon and returns the principal amount on the maturity.
METRO MATTRESS: Court Approves Liquidation Sales in 6 NY Stores
---------------------------------------------------------------
Furniture Today reports that Metro Mattress, a longtime U.S. sleep
retailer, has begun liquidation sales after receiving approval from
the U.S. Bankruptcy Court for the Northern District of New York.
At its peak, the company operated roughly 70 stores but filed for
Chapter 11 bankruptcy protection on September 4, 2024, amid
mounting financial losses, according to the report.
Judge Wendy A. Kinsella authorized "going-out-of-business" sales at
six New York locations, allowing Metro Mattress to sell its
inventory free of liens, claims, and other encumbrances. Previous
closures of 34 stores across New England and New York were
insufficient to halt the company's financial decline.
The liquidation is expected to continue for five weeks and features
discounts on major brands such as Beautyrest, Tempur-Pedic, and
Sealy. Remaining inventory may be consolidated across stores, with
a full wind-down of operations planned in the near future.
About Metro Mattress Corp.
Metro Mattress Corp. is specialty retailer of mattresses serving
New York, Connecticut, New Hampshire, Massachusetts, and Rhode
Island customers.
Metro Mattress Corp. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-30773) on Sept. 4,
2024. In the petition filed by Dino Cifelli, chief executive
officer, the Debtor estimated assets between $1 million and $10
million and liabilities between $10 million and $50 million.
Judge Wendy A. Kinsella oversees the case.
The Debtor tapped Barclay Damon LLP as bankruptcy counsel,
Mackenzie Hughes LLP as special labor and employment counsel, and
NextPoint LLC as financial advisor.
MJS MATERIALS: Linda Leali Named Subchapter V Trustee
-----------------------------------------------------
The Acting U.S. Trustee for Region 21 appointed Linda Leali, Esq.,
as Subchapter V trustee for MJS Materials, Inc.
Ms. Leali will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Leali declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Linda M. Leali
Linda M. Leali, P.A.
2525 Ponce De Leon Blvd., Suite 300
Coral Gables, FL 33134
Telephone: (305) 341-0671, ext. 1
Facsimile: (786) 294-6671
Email: leali@lealilaw.com
About 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 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 reported up to
$50,000 in assets and liabilities.
Honorable Bankruptcy Judge Mindy A. Mora handles the case.
The Debtor is represented by Matthew S. Kish, Esq.
MONTE KARL WEEDEN: Court Denies Bid to Employ Professional
----------------------------------------------------------
The Honorable Benjamin P. Hursh of the United States Bankruptcy
Court for the District of Montana denied without prejudice the
amended application of Monte Karl Weeden to employ a professional
in his bankruptcy case.
Prior to the Application, creditor Employers Mutual Casualty
Company filed a motion to dismiss on Aug. 13, 2025.
The Court entered an order on Oct. 3, 2025. The Order allowed for
the sale of real property owned by Weeden Ranch, LLC to enable
Debtor's entities to retain counsel to file for bankruptcy.
Paragraph 9 of the Order states Debtor has until Nov. 7, 2025, to
file for bankruptcy for his entities.
The pending Motion to Dismiss creates significant uncertainty in
this case. The Court finds it imprudent to grant the Application
while the Motion to Dismiss remains unresolved.
A copy of the Court's Order dated October 9, 2025, is available at
https://urlcurt.com/u?l=jpBaxV from PacerMonitor.com.
Monte Karl Weeden filed for Chapter 11 bankruptcy protection
(Bankr. D. Mont. Case No. 24-40058) on September 17, 2024, listing
under $1 million in both assets and liabilities. The Debtor is
represented by Gary Deschenes, Esq.
MOTORS LIQUIDATION: Wins Bid to Enforce Sale Order Against Texas
----------------------------------------------------------------
Chief Judge Martin Glenn of the United States Bankruptcy Court for
the Southern District of New York granted the motion of General
Motors LLC and OnStar, LLC to enforce the July 5, 2009 sale order
and injunction against the State of Texas.
This case arises from an underlying dispute between New GM and the
State of Texas taking place in the District Court for Montgomery
County, Texas. Texas alleges that beginning in 2011 New GM violated
the Deceptive Trade Practices Consumer Protection Act. Texas
accuses New GM of operating a "mass surveillance program" involving
the collection of data pertaining to a user's driving behavior,
geolocation data, and disclosing that data to third parties without
adequate disclosure to consumers. Texas seeks to incorporate a
variety of allegations against New GM over a broad period of
history.
New GM asserts Texas violated the Sale Order entered by this Court
in the General Motors bankruptcy proceeding in July 2009. New GM
contends the Sale Order's "free and clear" sale provision bars
Texas from asserting conduct of Old GM against New GM when seeking
damages for its data collection program.
New GM argues that sovereign immunity does not bar the Bankruptcy
Court from exercising jurisdiction over Texas. New GM posits that
sovereign immunity is not implicated by a sale order pursuant to
section 363(f) of the Bankruptcy Code because such an order is in
rem.
New GM argues that the Anti-Injunction Act does not prevent the
Bankruptcy Court from enforcing the Sale Order. New GM claims that
the Anti-Injunction Act is inapplicable because it involves the
enforcement of an existing injunction, not the institution of a new
injunction.
New GM contends the Younger abstention is inapplicable because it
does not apply to expressly authorized acts of Congress. New also
argues the Burford abstention is inapplicable to this case. New GM
claims they are not asking this Court to enjoin portions of the
DTPA or assess the merits of the underlying claims.
Furthermore, New GM argues that mandatory and permissive bankruptcy
abstention pursuant to 28 U.S.C. Sec. 1334 are also inapplicable.
Turning to mandatory abstention first, New GM repeats its argument
that the interpretation of the Sale Order is a core proceeding
under 28 U.S.C. Sec. 1334, and as a result, mandatory abstention is
inapplicable. New GM claims that permissive abstention is also not
applicable. New GM claims that bankruptcy issues predominate the
Motion, other decisions from this district have granted motions to
enforce sale orders, and the Texas Court's recent orders have
demonstrated its intent to defer to the Bankruptcy Court to
interpret and enforce the Sale Order.
Texas believes its allegations against Old GM are not barred
because it seeks to use Old GM's conduct as a comparator to New
GM's conduct to determine the amount necessary to deter future
violations by a major automobile manufacturer. Texas contends that
the penalties against Old GM were insufficient to deter it from
engaging in future misconduct. As a result, it posits that the
jury can use information about similarly situated automobile
manufacturers as a floor when determining the amount of civil
penalties necessary to prevent New GM from committing future
violations. Texas claims that New GM has not demonstrated anything
from the Bankruptcy Code, the Bankruptcy Court's prior rulings, or
the Sale Order that prevents it from using Old GM's conduct as a
comparator.
Texas also argues that the knowledge of Old GM may be imputed to
New GM. New GM inherited the knowledge of Old GM's history because
it obtained Old GM's books and records through the Sale Order. In
the alternative, it argues New GM was aware of Old GM's prior
violations because they should have disclosed liabilities and debts
in the Chapter 11 proceedings. Texas also claims New GM had
knowledge of Old GM's prior conduct because its violations relating
to consumers are matters of public record.
New GM, however, claims that Texas improperly pursues claims
predicated on successor liability. It alleges Texas violates the
Sale Order by seeking to assess penalties, or increase penalties,
based on conduct of Old GM in connection with the Purchased Assets
that occurred prior to the closing. Both the attempt to impose
civil penalties based on theories of successor liability and fix
rights of recovery and remedies based on successor liability are
impermissible violations of the Sale Order.
New GM argues Texas cannot use Old GM's conduct as a comparator to
show the amount of penalty it takes to defer future violations. New
GM claims that case law does not support Texas's position, and it
has not cited any cases that would permit this act. It further
contends that a prior ruling of the Bankruptcy Court does not
authorize Texas to seek civil penalties on an imputation theory. It
rejects the argument that justice requires a jury to hear the
conduct of Old GM.
The Bankruptcy Court finds that it possesses jurisdiction over the
Sale Order because the interpretation and enforcement of the Sale
Order is within the Court's "core" jurisdiction. It further finds
that sovereign immunity does not prevent this Court from exercising
jurisdiction. Similarly, the Anti-Injunction Act, Younger,
Burford, and both permissive and mandatory bankruptcy abstention do
not require or encourage the Bankruptcy Court to abstain.
Moreover, New GM is not liable for the bad acts of Old GM in the
context of civil penalties under the DTPA. The Bankruptcy Court
finds that the statutory scheme for calculating damages relying on
Old GM's prior bad acts constitutes a form of successor liability,
which is barred by the Sale Order. Texas has failed to demonstrate
its usage of Old GM's acts nonetheless constitute an independent
claim, that it uses Old GM as a comparator, has imputed knowledge
of Old GM's conduct to New GM, or that justice requires a jury to
hear these bad acts. Accordingly, the State of Texas must strike
allegations relating to the conduct of Old GM in the Seconded
Amended Complaint.
A copy of the Court's Memorandum Opinion and Order dated October
14, 2025, is available at https://urlcurt.com/u?l=JMLH7z from
PacerMonitor.com.
Attorneys for General Motors LLC and OnStar, LLC:
Scott Davidson, Esq.
KING & SPALDING LLP
1185 Avenue of the Americas
New York, NY 10036
E-mail: sdavidson@kslaw.com
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
-- http://www.gm.com/-- is one of the world's largest automakers,
traces its roots back to 1908.
General Motors Co. was formed to acquire the operations of General
Motors Corp. through a sale under 11 U.S.C. Sec. 363 following Old
GM's bankruptcy filing. The U.S. government provided financing.
The deal was closed July 10, 2009, and Old GM changed its name to
Motors Liquidation Co.
Old GM -- General Motors Corporation -- filed for Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1,
2009. The Honorable Robert E. Gerber presides over the Chapter 11
cases. The Debtors tapped Weil, Gotshal & Manges LLP, Jenner &
Block LLP, and Honigman Miller Schwartz and Cohn LLP as counsel;
and Morgan Stanley, Evercore Partners and the Blackstone Group LLP
as financial advisor. Garden City Group served as claims and
notice agent of the Debtors.
The U.S. Trustee appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured Creditors
Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis
& Frankel LLP served as bankruptcy counsel to the Creditors
Committee. Attorneys at Butzel Long served as counsel on supplier
contract matters. FTI Consulting Inc. served as financial advisors
to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin &
Drysdale, Chartered, represented the Asbestos Committee. Legal
Analysis Systems, Inc., served as asbestos valuation analyst.
The Bankruptcy Court entered an order confirming the Debtors'
Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan
was declared effect on March 31, 2011.
On Dec. 15, 2011, Motors Liquidation was dissolved. On the
Dissolution Date, pursuant to the Plan and the Motors Liquidation
Company GUC Trust Agreement, dated March 30, 2011, between the
parties thereto, the trust administrator and trustee -- GUC Trust
Administrator -- of the Motors Liquidation Company GUC Trust,
assumed responsibility for the affairs of and certain claims
against MLC and its debtor subsidiaries that were not concluded
prior to the Dissolution Date.
MUNROE CONSTRUCTION: Seeks Chapter 7 Bankruptcy in New York
-----------------------------------------------------------
On October 15, 2025, Munroe Construction Corp. voluntarily filed
for Chapter 7 bankruptcy protection in the U.S. Bankruptcy Court
for the Southern District of New York. The company's bankruptcy
documents show liabilities estimated between $100,001 and $1
million, with 1 to 49 creditors reported.
About Munroe Construction Corp.
Munroe Construction Corp. is a real estate company.
Munroe Construction Corp. sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-12274) on October 15,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $100,001 and $1 million each.
Honorable Bankruptcy Judge Lisa G. Beckerman handles the case.
MURPHY ENERGY: Bank of America Wins Summary Judgment Bid
--------------------------------------------------------
Judge Karen Gren Scholer of the United States District Court for
the Northern District of Texas granted the motion for summary
judgment filed by Bank of America, N.A. with respect to White
Operating Company's first amended complaint in the case captioned
as WHITE OPERATING COMPANY v. BANK OF AMERICA, N.A., Case No.
3:23-cv-00525-S (N.D. Tex.). The Court also entered a final
judgment, holding that White Operating "take nothing by its claims
against Defendant." Court costs are taxed against Plaintiff. All
relief not expressly granted is denied.
White Operating seeks payment from BofA for Oklahoma oil,
condensate liquids, and other hydrocarbons sold approximately nine
years ago. The purchaser of the products was non-party Murphy
Energy Corporation, together with its parent company and
affiliates, a midstream provider of transportation, storage, and
marketing services for oil and gas producers.
In 2012, BofA provided Murphy with revolving' and term loan
facilities under the Loan and Security Agreement dated Sept. 12,
2012. The loan facilities included a $60 million revolving loan and
a $6 million term loan, secured by liens on most of Murphy's
assets. Pursuant to the Credit Agreement, Murphy created a master
deposit account with Defendant. Proceeds from resales of products
that Murphy purchased from producers, like Plaintiff, were
deposited in the master deposit account. Defendant swept funds from
the account daily. The sweeps created additional borrowing capacity
under the revolving loan, and Defendant would readvance funds to
Murphy so that Murphy could pay its expenses.
Plaintiff is an Oklahoma oil and gas company. Plaintiff operates
oil and gas properties and markets production in its wells for the
benefit of holders of various interests. Murphy contracted to buy
crude oil and gas ("Hydrocarbons") from Plaintiff. Plaintiff sold
Hydrocarbons to Murphy in June, July, and August 2016. Murphy never
paid for these purchases and currently owes Plaintiff
$2,586,956.86, plus interest.
In July 2016, Defendant learned that Murphy was overadvanced. Based
on Murphy's overadvanced position and failure to comply with
reporting obligations, Defendant declared a default under the
Credit Agreement on July 22, 2016.
Also on July 22, Defendant asked Murphy to retain a chief
restructuring officer. Defendant suggested two advisory firms for
Murphy to consider when selecting a chief restructuring officer:
FTI Consulting and CR3 Partners. Ultimately, Steven List, a partner
at CR3, took over as Chief Restructuring Officer for Murphy.
After Defendant declared a default, Murphy was required to request
advances under the revolver, and Defendant would decide whether to
approve them. At some point, Murphy represented to Defendant that
it had found a buyer for Murphy's assets and debt. As a result,
Defendant entered into the Forbearance Agreement and Thirteenth
Amendment to Loan and Security Agreement with Murphy in September
2016. The planned asset sale did not happen. and Murphy filed
voluntary bankruptcy petitions in October 2016.
Shortly after the bankruptcy case commenced, the United States
Bankruptcy Court for the Northern District of Texas issued an order
approving a post-petition financing facility, pursuant to which
Defendant continued to finance Murphy.
Plaintiff filed this lawsuit in Oklahoma state court on May 27,
2021. Defendant removed the case to the United States District
Court for the Western District of Oklahoma. On March 8, 2023,
pursuant to a motion filed by Defendant, the Western District of
Oklahoma transferred the case to this Court.
In its Amended Complaint, filed after transfer, Plaintiff brought
claims for foreclosure of lien under the Oil and Gas Owners' Lien
Act of 2010 ("Lien Act"), Okla. Stat. tit. 52, §549, declaratory
judgment pursuant to the Production Revenue Standards Act ("PRS
A"), Okla. Stat. tit. 12, Sec. 570, negligence per se, intentional
interference with contractual relations, conversion, fraud,
constructive fraud, and unjust enrichment.
Defendant moved to dismiss all of Plaintiff's claims. The Court
issued a Memorandum Opinion and Order denying the Motion to Dismiss
in large part. However, the Court granted the motion with respect
to Plaintiff's request for a declaratory judgment under the PRSA
and constructive fraud claim. Defendant now moves for summary
judgment on Plaintiff's remaining claims.
Defendant seeks summary judgment on Plaintiff's claims in this case
on four grounds:
(1) res judicata;
(2) collateral estoppel;
(3) the preclusive effect of the DIP Order; and
(4) the merits of the claims.
Res Judicata
The Court will not give the first summary judgment opinion res
judicata effect in this case. The Court denies the Motion to the
extent that it seeks summary judgment on Plaintiff's claims on the
basis of res judicata.
Collateral Estoppel
Plaintiff argues that collateral estoppel does not apply because
Plaintiff asserts different, state-law-based, causes of action from
those heard by the bankruptcy court and asserts causes of action
the bankruptcy court expressly declined to hear.
The Court concludes that Plaintiff is barred from relitigating two
issues:
(1) whether its lien attached to funds readvanced to Murphy; and
(2) whether Defendant readvanced funds in an amount exceeding
what it swept.
In other words, the Bankruptcy Court's finding that any funds swept
by Defendant were essentially returned to Murphy through readvances
without affecting the producers' lien rights is entitled to
preclusive effect.
Defendant contends that, in the equitable subordination summary
judgment ruling, the Bankruptcy Court determined that Defendant did
not engage in fraud, breach of fiduciary duties, or inequitable
conduct, or use Murphy as an instrumentality or alter ego.
The Court cannot determine whether the facts underlying the
equitable subordination ruling were identical to the relevant facts
in this case.
Because the Court cannot determine which issues were actually
litigated and necessary to the judgment in the equitable
subordination matter, the Court cannot give any issues preclusive
effect in this case.
DIP Order
Defendant argues that the DIP Order bars Plaintiff's claims because
it released Defendant from any claims by Murphy's creditors related
to the Credit Agreement. Defendant does not explain how such a
release could foreclose claims brought in a separate non-bankruptcy
proceeding. As such, the Court agrees with Plaintiff that the DIP
Order has no impact on Defendant's liability in this case.
Merits
Defendant contends that Plaintiff has not established that there is
a genuine issue of material fact so that a reasonable jury might
return a verdict in its favor on its claims for violation of the
Lien Act, negligence per se, intentional interference with
contractual relations, conversion, fraud, and unjust enrichment.
Lien Act
According to the Court, the critical flaw in Plaintiff's argument
is that it fails to account for readvances and thus does not create
a fact dispute regarding whether the proceeds are in Defendant's
possession such that Plaintiff can seek relief from Defendant. The
summary judgment evidence establishes that Defendant did not retain
the proceeds to which Plaintiff's lien attached. Instead, Defendant
readvanced the proceeds to Murphy. Therefore, the evidence shows
that the proceeds to which Plaintiff's lien attached were
readvanced to Murphy and were not retained by Defendant.
Despite this evidence. Plaintiff claims that as of the date Murphy
filed for bankruptcy, all proceeds received by Murphy for the sale
of Hydrocarbons that Murphy purchased from producers such as
Plaintiff, had been swept by Defendant and applied to Defendant's
line of credit, and were not in Murphy's possession. Plaintiff does
not cite to any evidence to support this proposition.
Because Plaintiff has not put forth evidence to create a genuine
issue of material fact on the question of whether the proceeds
impressed with Plaintiff's lien are in Defendant's possession, and
because Plaintiff is estopped from making such an assertion.
Plaintiff cannot foreclose on its lien against Defendant. Defendant
is entitled to summary judgment on Plaintiff's claim under the Lien
Act, the Court finds.
Intentional Interference with Contractual Relations
Defendant contests Plaintiff's ability to establish the elements of
a claim for intentional interference with contractual relations.
Plaintiff sets forth the following facts in support of its claim:
(1) Defendant knew Plaintiff had crude oil purchase contracts
with Murphy;
(2) Defendant interfered with such contracts by allowing Murphy
to purchase and take possession of Hydrocarbons, and not allowing
Murphy to pay [Plaintiff] for these Hydrocarbons; and
(3) such interference was malicious and wrongful because
Defendant knew its rights in the proceeds were inferior to
Plaintiff's rights.
According to the Court, Plaintiff's claim fails because it has not
demonstrated that Defendant interfered with Plaintiff's contracts
with Murphy. There is no evidence that Defendant "allowed" Murphy
to purchase the Hydrocarbons. All of Plaintiff's evidence goes only
to the question of whether Defendant controlled Murphy's ability to
pay for its purchases after they were made. There is also no
evidence that Defendant refused to allow Murphy to pay for the
Hydrocarbons. Instead, the evidence shows that Defendant approved
advancing funds under the revolver, and approved payment amounts
requested by Murphy but not what they were going to pay.
Because Plaintiff has no evidence creating a genuine issue of
material fact on the question of whether Defendant interfered with
Plaintiff's contract with Murphy, Plaintiff's intentional
interference with contractual relations claim does not survive
summary judgment, the Court concludes.
Conversion Claim
In this case, Plaintiff's conversion claim is based on the notion
that Defendant swept the proceeds of the Hydrocarbons and refused
to return them. Plaintiff has not adduced sufficient evidence that
Defendant kept the proceeds, as opposed to readvancing them to
Murphy. And again. Plaintiff is estopped from making such an
argument because the Bankruptcy Court already determined that
Defendant readvanced more than it swept and that the readvances did
not impair Plaintiff's lien rights. Therefore, the Court finds
Defendant is entitled to summary judgment on Plaintiff's conversion
claim.
Fraud
Plaintiff's fraud claim is primarily based on representations
and/or omissions made by nonparties. Plaintiff contends that
Defendant allowed Murphy to continue purchasing Hydrocarbons while
Defendant was in control of Murphy through CR3 and Steven List and
allowed Murphy to sell the Hydrocarbons to raise money to fund
Murphy's ongoing business.
Plaintiff's fraud claim relies on the theory that CR3, List, and/or
Murphy were acting as agents of or were otherwise controlled by
Defendant.
According to the Court, Plaintiff has not pointed to any evidence
that CR3 or List was Defendant's agent. As to actual authority, the
evidence does not show that Defendant controlled CR3 or List.
Instead, the evidence shows that Defendant proposed both CR3 and
FTI to Murphy as options for advisory firms with expertise in
Murphy's industry should Murphy wish to consider them. And even if
the evidence supported Plaintiff's theory that Defendant forced
Murphy to hire CR3, that would not prove that Defendant had the
right to control List and CR3 or that CR3 was acting on Defendant's
behalf.
The Court finds Plaintiff has not established a basis on which
Defendant can be held liable for alleged fraudulent
misrepresentations or omissions by CR3, List, and/or Murphy.
Therefore, Defendant is entitled to summary judgment on Plaintiff's
fraud claim.
Unjust Enrichment
The Court concludes that Defendant is entitled to summary judgment
on Plaintiff's unjust enrichment claim. According to the Court,
Defendant does not have the proceeds in its hands. Instead, as both
the District Court and the Bankruptcy Court have determined.
Defendant readvaneed the swept proceeds to Murphy. As such,
Defendant was not enriched -- unjustly or otherwise -- and
Plaintiff cannot look to Defendant to recover the proceeds.
Plaintiff has not provided summary judgment evidence creating a
fact issue as to whether Defendant refused to allow Murphy to pay
Plaintiff. Therefore, Plaintiff's unjust enrichment claim does not
survive summary judgment, the District Court concludes.
In sum, viewing all evidence and drawing all reasonable inferences
in the light most favorable to Plaintiff, the Court holds that
Defendant is entitled to summary judgment on all of Plaintiff's
claims because Defendant has successfully demonstrated that there
is no genuine dispute as to any material fact in this case.
A copy of the Court's Memorandum Opinion and Order is available at
https://urlcurt.com/u?l=0EeSEB from PacerMonitor.com.
About Connect Transport
Privately-held Connect Transport, LLC, provides transportation,
storage, producer, and marketing services for crude oil, natural
gas liquids, and condensates.
Connect Transport and its affiliates filed for Chapter 11
bankruptcy protection (Bankr. N.D. Tex. Lead Case No. 16-33971) on
Oct. 4, 2016.
The affiliated debtors are Big Rig Tanker, L.L.C., MG Rolling Stock
Land, L.L.C., Murphy Energy Corporation, Murphy Holdings, Inc.,
Port Allen Terminal, LLC, Port Hudson Terminal, LLC, Murphy
Terminals, LLC, and Connect Terminals, LLC (Case Nos. 16-33972 to
16-33979).
Connect Transport estimated assets of $500,000 to $1 million and
liabilities of $50 million to $100 million. Murphy Energy Corp.
estimated $100 million to $500 million in both assets and
liabilities.
The Debtors tapped Dykema Cox Smith as legal counsel. Houlihan
Lokey Capital, Inc., serves as the Debtors' investment banker while
Kurtzman Carson Consultants LLC serves as claims and noticing
agent.
The U.S. Trustee appointed an official committee of unsecured
creditors. The committee retained McCathern, PLLC, as counsel. The
committee also retained GlassRatner Advisory & Capital Group, LLC,
as financial advisor.
On February 7, 2017, Jason R. Searcy was appointed as Chapter 11
trustee for the Debtors. The trustee hired Searcy & Searcy, P.C.
as bankruptcy counsel, and Foldetta, LLC as real estate broker.
N.K.G. CORP: Ronald Friedman of Rimon PC Named Subchapter V Trustee
-------------------------------------------------------------------
The U.S. Trustee for Region 2 appointed Ronald Friedman, Esq., at
Rimon, PC as Subchapter V trustee for N.K.G. Corp.
Mr. Friedman will be paid an hourly fee of $800 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Friedman declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Ronald J. Friedman, Esq.
Rimon PC
100 Jericho Quadrangle, Ste. 300
Jericho, NY 11753
Email: ronald.friedman@rimonlaw.com
About N.K.G. Corp.
N.K.G. Corp. provides residential construction and renovation
services, including remodeling, woodwork, painting, electrical, and
plumbing work.
N.K.G. filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. N.Y. Case No. 25-44858) on October 8,
2025, with $1 million to $10 million in assets and liabilities.
Neville Greaves, president of N.K.G., signed the petition.
Judge Nancy Hershey Lord presides over the case.
Troy J. Lambert, Esq., at Alter & Barbaro Esq represents the Debtor
as legal counsel.
NAVIDEA BIOPHARMACEUTICALS: Taps Ordinary Course Professionals
--------------------------------------------------------------
Navidea Biopharmaceuticals Inc. seeks approval from U.S. Bankruptcy
Court for the District of Delaware to retain non-bankruptcy
professionals in the ordinary course of business.
The Debtors need ordinary course professionals to perform services
for matters unrelated to these Chapter 11 cases.
The Debtors seek to pay OCPs 100 percent of the fees and expenses
incurred.
The Debtors do not believe that any of the OCPs have an interest
materially adverse to them, their estates, creditors, or other
parties in interest in connection with the matter upon which they
are to be engaged.
The OCPs include:
Winstead P.C.
-- Litigation Counsel
Maslon
-- Corporate Counsel
Plante Moran
-- Accounting and tax advisory
Fredrikson & Byron P.A.
-- Patent Attorney
Bayard P.A.
-- Delaware Corporate Counsel
Richardson Financial Group Ltd.
-- Tax and regulatory filings for Navidea Biopharmaceuticals,
Ltd.
Hayes & Hayes
-- Tax and regulatory filings for Navidea Biopharmaceuticals
Europe, Ltd.
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.
NAVIDEA BIOPHARMACEUTICALS: Taps Pashman Stein Walder as Counsel
----------------------------------------------------------------
Navidea Biopharmaceuticals Inc. seeks approval from U.S. Bankruptcy
Court for the District of Delaware to hire Pashman Stein Walder
Hayden, P.C. as bankruptcy counsel.
The firm will render these services:
a. perform all necessary services as the Debtor's bankruptcy
counsel, including, without limitation, providing the Debtor with
advice, representing the Debtor, and preparing necessary documents
on behalf of the Debtor in the areas of restructuring and
bankruptcy;
b. take all necessary actions to protect and preserve the
Debtor's estate during this Chapter 11 Case, including the
prosecution of actions by the Debtor, the defense of any actions
commenced against the Debtor, negotiations concerning litigation in
which the Debtor is involved, and objecting to claims filed against
the estate;
c. prepare or coordinate preparation on behalf of the Debtor,
as debtor in possession, any necessary motions, applications,
answers, orders, reports, and papers in connection with the
administration of this Chapter 11 Case;
d. counsel the Debtor with regard to its rights and
obligations as debtor in possession;
e. coordinate with the Debtor's other professionals in
representing the Debtor in connection with this Chapter 11 Case;
and
f. perform all other necessary or requested legal services.
Pashman's current hourly rates are:
Partners $499 to $1,017
Of Counsel $589 to $980
Special Counsel $779 to $779
Counsel $470 to $657
Associates $428 to $589
Paraprofessionals $375 to $409
Pashman received a payment of $75,000 on Sep. 12, 2025, which was
paid in an advance fee for future services to be rendered and
expenses to be incurred.
Pashman will also seek reimbursement for reasonable and necessary
expenses incurred.
Pashman Stein Walder Hayden, P.C. is a "disinterested person," as
defined in section 101(14) of the Bankruptcy Code, according to
court filings.
The firm can be reached through:
Joseph C. Barsalona, II, Esq.
Pashman Stein Walder Hayden, P.C.
824 North Market Street, Suite 800
Wilmington, DE 19801
Email: jbarsalona@pashmanstein.com
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.
NEW FORTRESS: Angel Oak Marks $500,000 2026 Note at 65% Discount
----------------------------------------------------------------
Angel Oak Strategic Credit Fund has marked a $500,000 senior
secured note issued by New Fortress Energy, Inc., with a coupon
rate of 6.50% and a maturity date of September 30, 2026, to market
at $175,403, or 35% on the dollar, according to the Fund's
Semi-Annual Report on Form N-CSRS for the period ended July 31,
2025, delivered to the Securities and Exchange Commission on
October 6.
Angel Oak may be reached at:
Ward Bortz, President
3344 Peachtree Rd. NE, Suite 1725
Atlanta, GA 30326
The Fund is advised by:
Stephen T. Cohen, Esq.
Matthew E. Barsamian, Esq.
Dechert LLP
1900 K Street NW
Washington, DC 20006
New Fortress Energy Inc. (NASDAQ: NFE) is an integrated
gas-to-power company that develops, finances, and constructs energy
infrastructure assets.
NEW MEXICO TERMINAL: Case Summary & One Unsecured Creditor
----------------------------------------------------------
Debtor: New Mexico Terminal Services, LLC
9615 Broadway SE
Albuquerque, NM 87105
Business Description: New Mexico Terminal Services, LLC is
classified as a single-asset real estate
entity under 11 U.S.C. Section 101(51B).
Chapter 11 Petition Date: October 16, 2025
Court: United States Bankruptcy Court
District of New Mexico
Case No.: 25-11291
Judge: Hon. Robert H Jacobvitz
Debtor's Counsel: Victor Gerald Grafe III, Esq.
VICTOR GRAFE LAW FIRM LLC
214 Old Coors Dr SW
Albuquerque NM 87121
Tel: 505-433-0823
Email: victor@vgrafelaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Karl G. Pergola as managing member.
The Debtor's sole unsecured creditor is R.T. Hicks Consulting,
Ltd., with a $9,000 claim related to the provision of professional
services, and can be reached at 901 Rio Grande Blvd NW, Suite
F-142, Albuquerque, NM 87104, phone 505-238-5004, email
r@thicksconsult.com
A full-text copy of the petition is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/TYIRIYI/New_Mexico_Terminal_Services_LLC__nmbke-25-11291__0001.0.pdf?mcid=tGE4TAMA
NEW NORMAL BREWING: Mark Sharf Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a
practicing attorney in Los Angeles, as Subchapter V trustee for New
Normal Brewing, LLC.
Mr. Sharf will charge $660 per hour for his services as Subchapter
V trustee and will seek reimbursement for work-related expenses
incurred.
Mr. Sharf declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark Sharf, Esq.
6080 Center Drive, 6th Floor
Los Angeles, CA 90045
Telephone: (323) 612-0202
Email: mark@sharflaw.com
About New Normal Brewing
New Normal Brewing LLC, doing business as Temescal Brewing, is an
Oakland-based brewery.
New Normal Brewing sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 25-41895) on October
9, 2025. In its petition, the Debtor reported 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., at Nuti Hart,
LLP.
NEW NORMAL INDUSTRIES: Mark Sharf Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a
practicing attorney in Los Angeles, as Subchapter V trustee for New
Normal Industries, LLC.
Mr. Sharf will charge $660 per hour for his services as Subchapter
V trustee and will seek reimbursement for work-related expenses
incurred.
Mr. Sharf declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark Sharf, Esq.
6080 Center Drive, 6th Floor
Los Angeles, CA 90045
Telephone: (323) 612-0202
Email: mark@sharflaw.com
About New Normal Industries LLC
New Normal Industries, LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 25-41896) on
October 9, 2025, with $50,001 to $100,000 in assets and $500,001 to
$1 million in liabilities.
Judge Charles Novack oversees the case.
Christopher Hart, Esq., at Nuti Hart, LLP represents the Debtor as
legal counsel.
NEWFOLD DIGITAL: Seeks Additional Creditor Support for Debt Deal
----------------------------------------------------------------
Reshmi Basu of Bloomberg News reports that Clearlake Capital
Group–backed Newfold Digital Inc. is seeking additional support
for its recently approved debt restructuring through side
agreements with lenders that were not part of the initial
negotiations, according to people familiar with the matter. The
company aims to broaden participation and ensure a smoother
execution of its restructuring plan.
The web-services provider, also backed by Siris Capital, struck a
deal earlier this month with creditors including Pacific Investment
Management Co. (PIMCO) and GoldenTree Asset Management following
months of talks. The agreement provides about $100 million in new
financing and includes a debt exchange designed to streamline the
company's capital structure and modify repayment priorities,
according to report.
Sources said Newfold is now working to bring more lenders into the
fold by offering separate arrangements that reflect their specific
positions. The additional support could help stabilize the
company's balance sheet and limit the potential for creditor
opposition as the restructuring advances, the report relays.
About Newfold Digital Inc.
Newfold Digital Inc. is a provider of web presence solutions
primarily serving the SMB markets. Its products include internet
domains, hosting, websites, eCommerce, and related products. Its
brands include web.com and bluehost and over 15 other related
brands.
NEXXT GEN: Shareholder Asks Court to Dissolve Receivership
----------------------------------------------------------
Eric K. Grant asks the United States District Court for the
Southern District of Florida, Miami Division, to dissolve the
receivership of Nexxt Gen Corporation and discharge the receiver
and her professionals from all duties and responsibilities.
Mr. Grant also asks the Court to find that the Receiver has
fulfilled her duties and complied with her obligations under the
Order Appointing Receiver, has filed all required monthly reports,
and has sought and been paid compensation pursuant to
court-approved compensation procedure.
He also asks the Court to authorize the Receiver to transition
custody, control, and possession over Nexxt Gen and all of Nexxt
Gen's assets, books, records, and documents to Nexxt Gen at the
direction of Mr. Grant and his counsel.
He asks the Court to deny the Receiver's Agreed In Part Motion to
Expand Receivership Over Nexxtgen Communications Holdings LLC
(Referred to as NGVSAT) as moot.
Counsel for Mr. Grant advised the Court that the Receiver and David
Martinez do not object to the request. However, David Peyton,
another shareholder, opposes the relief sought. According to Mr.
Grant's counsel, Mr. Peyton would like the Receivership to morph
into a "constructive trust" over the assets of Nexxt Gen to
preserve such assets for collection by Peyton in the event that
Peyton successfully obtains a monetary judgment against Grant in
this matter.
On January 21, 2025, the Court appointed Maria M. Yip as receiver
for Nexxt Gen at Grant's request. Grant sought the Receiver's
appointment to end the chaos resulting from purported Nexxt Gen
shareholders, Plaintiff David Peyton and Intervenor-Plaintiff David
Martinez, interfering with and contradicting Grant's operational
decisions regarding Nexxt Gen.
On August 28, 2025, the Court determined that Peyton and Martinez
are not shareholders of Nexxt Gen, ordered the parties to abide by
that decision as the law of the case, and, on September 27, 2025,
the Court's Order After Bench Trial became final and
non-appealable.
According to Grant, the reason for the appointment of the Receiver
and the imposition of the Receivership no longer exists, and the
Receivership is due to be dissolved as expeditiously as possible.
Grant says he is appreciative of the diligence and effort that the
Receiver and her team brought to the management of Nexxt Gen, and
the stability that resulted by virtue of their efforts, but the
reason for imposition of the Receivership has ceased, and it is due
to be dissolved.
Grant contends the law is clear that discharge of the Receiver is
within this Court's discretion, citing United States v. Amodeo, 44
F.3d 141, 146 (2d Cir. 1995), and, as noted in the Order,
"receivership once imposed on a corporation should be terminated
and control returned to those who own the business as soon as the
reason for its imposition ceases." (quoting SEC v. Spence & Green
Chem Co., 612 F.2d 896, 904 (5th Cir. 1980)).
Mr. Grant's counsel may be reached at:
Peter J. Klock, II, Esq.
Brett M. Amron, Esq.
BAST AMRON LLP
One Southeast Third Avenue, Suite 2410
Miami, FL 33131
Telephone: (305) 379-7904
Email: bamron@bastamron.com
pklock@bastamron.com
About Nexxt Gen
Nexxt Gen Corporation is a technology service provider focusing on
areas like cloud computing, data analytics, and AI. It also
specializes in 5G field services and solutions for the energy and
oil sectors.
On January 21, 2025, the Court appointed Maria M. Yip as the
receiver for Nexxt Gen at the request of Eric Grant, a shareholder.
NORHART INVEST: Financial Strain Raises Going Concern Doubt
-----------------------------------------------------------
Norhart Invest LLC disclosed in its Form 1-SA filed with the U.S.
Securities and Exchange Commission for the fiscal semiannual period
ended June 30, 2025, that substantial doubt exists about its
ability to continue as a going concern within the next 12 months.
The Company generated a net loss of $16,063 during the six months
ended June 30, 2025.
Since inception, the Company has financed its operations through
capital contributions from the Company's owners and sales of
Promissory Notes. It has earned minimal revenue since its
inception. The ultimate success of the Company is dependent on
management's ability to source investments at levels sufficient to
generate operating revenues in excess of expenses.
Management evaluated the condition of the Company and has
determined that until such revenue levels can be achieved,
management will need to secure additional capital to continue
growing working capital and fund further development and
operations.
In addition, as of June 30, 2025, the Company has notes payable
amounts totaling $1,072,345 that are scheduled to mature within 12
months of the date that the accompanying interim financial
statements.
The Company intends to continue financing its future activities and
working capital needs largely through sales of Promissory Notes to
investors and, potentially, through other private financing
arrangements until such time as funds provided by operations are
sufficient to fund the Company's working capital requirements. The
failure to obtain sufficient debt and/or equity financing and to
achieve profitable operations and positive cash flows from
operations could adversely affect the Company's ability to achieve
its business plans and continue as a going concern.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/2b7wbv9k
About Norhart Invest
Norhart Invest LLC is a Minnesota limited liability company that
raises capital to make investments into certain real estate and
real estate related investments. The Company maintains and operates
an online investment platform available through the Company's
website -- www.norhart.com/invest/ -- for use by Norhart to build
and manage real estate.
As of June 30, 2025, the Company had $2.73 million in total assets,
$2.07 million in total liabilities, and $661,733 in total equity.
NOTRE DAME COLLEGE: Court to Appoint Receiver
---------------------------------------------
Joe Scalzo of Crain's Cleveland Business reports that Aurora
Management Partners and restructuring expert David Baker could soon
be appointed by a federal judge to assume control of Notre Dame
College's remaining assets, marking a key development in Bank of
America's foreclosure proceedings against the defunct South Euclid
school, Crain's Cleveland Business reported.
The proposed receivership would give Aurora and Baker the authority
to oversee and manage the college's campus and related holdings,
with the potential to sell them to settle the school's
approximately $20 million debt to the bank, the report states.
Should the order move forward, the appointed receiver will be
responsible for protecting asset value, maintaining property
operations, and coordinating with potential buyers, bringing the
institution one step closer to resolution, the report relays.
About Notre Dame College
Notre Dame College private Catholic college in South Euclid, Ohio.
OFFICE PROPERTIES: Defaults on $1.8 MM Interest Obligation
----------------------------------------------------------
Constantine Courcoulas of Bloomberg News reports that Office
Properties Income Trust missed an October 15, 2025 interest payment
amounting to $1.8 million on its 3.450% senior notes maturing in
2031, the company said in an SEC filing.
The Massachusetts-based REIT has 30 days to make the payment before
the lapse becomes an event of default under its debt agreements,
according to report.
According to the filing, the trust is collaborating with advisors
as it continues to explore restructuring options to stabilize its
balance sheet.
About Office Properties Income Trust
Office Properties Income Trust is the US-based real estate
investment trust.
OFFICE PROPERTIES: S&P Lowers Senior Unsecured Notes to 'D'
-----------------------------------------------------------
S&P Global Ratings lowered its issue-level rating on Office
Properties Income Trust's (OPI) senior unsecured notes due 2031 to
'D' from 'CC' following its missed interest payment. The '5'
recovery rating is unchanged.
The company announced that on Oct. 15, 2025, it did not make the
required interest payment of approximately $1.8 million due on its
3.45% senior unsecured notes due 2031. Given its weak liquidity
position and debt obligations, S&P does not expect OPI will make
the interest payment within the 30-day grace period. OPI continues
to work with advisers on restructuring efforts.
The 'SD' (selective default) issuer credit rating and other
issue-level ratings are unchanged. S&P will reassess its ratings on
OPI once S&P has more information regarding its plans.
ORCHARD FALLS: Hires Michael Best & Friedrich LLP as Counsel
------------------------------------------------------------
Orchard Falls Operating Company, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to hire
Michael Best & Friedrich LLP, successor to Allen Vellone Wolf
Helfrich & Factor P.C., as counsel.
On Sep. 23, 2025, the Debtor filed an application to employ Allen
Vellone Wolf Helfrich & Factor P.C. (AVWHF) as counsel for the
Debtor-in-Possession with an objection deadline of October 7,
2025.
Effective Oct. 1, 2025, AVWHF combined with and became part of
Michael Best & Friedrich LLP (MBF). The attorneys in the original
application listed to represent the Debtor, including Jeffrey
Weinman and Bailey Pompea, are now affiliated with MBF.
The Debtor desires to continue representation with the same
attorneys, now practicing under Michael Best & Friedrich LLP, and
asks the Court to enter an order granting the continued employment
of MBF as counsel for Debtor nunc pro tunc to Oct. 1, 2025.
The firm will handle all matters concerning the administration of
the Estate, including preparation of the bankruptcy statements and
schedules, a plan of reorganization and disclosure statement, as
well as all contested and litigation matters that arise in this
case.
The firm will be paid at these rates:
Jeffrey A. Weinman $650
Bailey Pompea $425
Partners $475 to $725
Associates $350 to $450
Paralegal $195 to $250
The firm received $25,000 prepetition in connection with fees and
expenses preparing to file the bankruptcy, including the $1,738
filing fee.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jeffrey A. Weinman, Esq., a partner at Michael Best & Friedrich
LLP, disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Jeffrey A. Weinman, Esq.
Bailey C. Pompea, Esq.
MICHAEL BEST & FRIEDRICH LLP
675 15th Street, Suite 2000
Denver, CO 80202
Tel: (720) 240-9515
Email: jeffrey.weinman@michaelbest.com
Email: bailey.pompea@michaelbest.com
About Orchard Falls Operating Company
Orchard Falls Operating Company, LLC is a single-asset real estate
debtor, as defined in 11 U.S.C. Section 101(51B).
Orchard Falls Operating Company, LLC filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo.
Case No. 25-16047) on September 19, 2025. At the time of filing,
the Debtor estimated $1 million to $10 million in assets and $1
million to $50 million in liabilities. Kenneth Grant, Manager of
Orchard Falls Holding Company LLC, signed the petition on behalf of
Orchard Falls Operating Company, LLC, which is managed by the
holding company.
Judge Thomas B Mcnamara presides over the case.
Jeffrey A. Weinman, Esq. at Michael Best & Friedrich LLP represents
the Debtor as counsel.
PALM PACIFIC: Collapses Amidst Fraud Allegations
------------------------------------------------
Desert Sun reported that a prominent Coachella Valley contractor's
business has collapsed amid a wave of fraud allegations and legal
troubles, leaving homeowners stranded with half-completed projects.
What started as a trusted name in home renovations has become the
center of a growing controversy, the report said.
Clients say they have been unable to reach owner Scott Cullens for
months, and many now fear the money they invested is gone for good.
Several homeowners allege they paid large sums—some in the
hundreds of thousands—without seeing their projects completed.
One of those homeowners, Howie Barokas, said his renovation under
Palm Pacific Restoration began in 2024 but was never finished.
"This isn't just a scam," he said. "It feels like a deliberate plan
to destroy people's future."
Barokas has since filed an $800,000 lawsuit against the company,
nearly equal to the amount he paid. The firm faces similar legal
challenges and is reportedly in bankruptcy proceedings, leaving
clients across the region struggling with financial losses and
unlivable homes, the report states.
About Palm Pacific Restoration
Palm Pacific Restoration Inc., also known as Palm Pacific
Construction, is a California-based company specializing in general
contracting and remodeling services.
PARAMOUNT GOLD: Baker Tilly US Raises Going Concern Doubt
---------------------------------------------------------
Paramount Gold Nevada Corp. disclosed in a Form 10-K Report filed
with the U.S. Securities and Exchange Commission for the fiscal
year ended June 30, 2025, that its auditor has expressed
substantial doubt about the Company's ability to continue as a
going concern.
For the year ended June 30, 2025 and 2024, the Company had net
losses of $9.05 million and $8.06 million, respectively.
Denver, Colorado -based Baker Tilly US, LLP, the Company's auditor
since 2022, issued a "going concern" qualification in its report
dated September 25, 2025, attached to the Company's Annual Report
on Form 10-K for the year ended June 30, 2025, 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.
The Company has not generated any revenues or cash flows from
operations to date. As such, the Company is subject to all the
risks associated with development stage companies. Since
inception, the Company has incurred losses and negative cash flows
from operating activities which have been funded from the issuance
of common stock, convertible notes, note payable and the sale of
royalties on its mineral properties. The Company does not expect
to generate positive cash flows from operating activities in the
near future, if at all, until such time it successfully initiates
production at its Grassy Mountain Project, including obtaining
construction financing, completing the construction of the proposed
mine and anticipates incurring operating losses for the foreseeable
future.
Paramount expects to continue to incur losses as a result of costs
and expenses related to maintaining its properties and general and
administrative expenses. Since 2015, the Company has relied on
equity financings, debt financings and sale of royalties to fund
its operations and the Company expects to rely on these forms of
financing to fund operations into the near future.
Paramount's current business plan requires working capital to fund
non-discretionary expenditures for its exploration and development
activities on its mineral properties, mineral property holding
costs and general and administrative expenses.
Subsequent to September 25, 2024, the Company expects to fund
operations as follows:
* Existing cash on hand and working capital.
* The existing ATM with Cantor Fitzgerald & Co. and
A.G.P/Alliance Global Partners.
* Insurance proceeds to fund reclamation and environmental
obligations at its Sleeper Gold Project.
* Equity financings and sale of royalties.
At June 30, 2025, the Company's cash balance was $1,351,001.
Historically, the Company have been successful in accessing capital
through equity and debt financing arrangements or by the sale of
royalties on its mineral properties, no assurance can be given that
additional financing will be available to it in amounts sufficient
to meet its needs, or on terms acceptable to the Company. In the
event that it are unable to obtain additional capital or financing,
operations, exploration and development activities would be
significantly adversely affected.
The continuation of the Company as a going concern is dependent on
having sufficient capital to maintain its operations. In
considering its financing plans and current working capital
position the Company believes there is substantial doubt about its
ability to continue as a going concern 12 months after the date
that the financial statements are issued.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/5fauu7yc
About Paramount Gold Nevada Corp.
Paramount Gold Nevada Corp. is engaged in the business of
acquiring, exploring and developing precious metals projects in the
United States of America. Paramount owns both exploration and
development stage projects in the states of Nevada and Oregon.
As of June 30, 2025, the Company had $52.40 million in total
assets, $18.83 million in total liabilities, and $33.57 million in
total stockholders' equity.
PARK 54 RESTAURANT: James LaMontagne Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Region 1 appointed James LaMontagne of Sheehan
Phinney Bass & Green as Subchapter V trustee for Park 54 Restaurant
Group, LLC.
Mr. LaMontagne will be paid an hourly fee of $475 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. LaMontagne declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
James S. LaMontagne, Esq.
Sheehan Phinney Bass & Green
75 Portsmouth Boulevard, Suite 110
Portsmouth, NH 03801
Phone: (603) 627-8102
jlamontagne@sheehan.com
About Park 54 Restaurant Group LLC
Park 54 Restaurant Group, LLC, doing business as Park 54 Restaurant
& Lounge, operates a full-service restaurant at 81 Fairmount Avenue
in Hyde Park, Massachusetts, serving American, Southern, Caribbean,
and soul cuisine with signature dishes such as chicken and waffles,
shrimp and lobster grits, and Rasta pasta. The Company offers
private event space through its upstairs "Oasis Room,"
accommodating up to 50 guests for gatherings including birthdays
and repass services. Founded by Hyde Park resident Tasha Hull, Park
54 emphasizes a community-oriented dining experience inspired by
the 54th Massachusetts Volunteer Infantry, the first African
American regiment to serve in the Civil War.
Park 54 Restaurant Group filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Mass. Case No.
25-12185) on October 10, 2025, with $627,265 in assets and
$1,837,756 in liabilities. Tasha Hull, manager, signed the
petition.
Judge Christopher J. Panos presides over the case.
David B. Madoff, Esq., at Madoff & Khoury, LLP represents the
Debtor as legal counsel.
PARK 54: Seeks to Hire Madoff & Khoury LLP as Bankruptcy Counsel
----------------------------------------------------------------
Park 54 Restaurant Group LLC seeks approval from the U.S.
Bankruptcy Court for the District of Massachusetts to hire Madoff &
Khoury LLP to handle its Chapter 11 bankruptcy case.
The firm will be paid at these rates:
Partner $450 per hour
Associate $350 per hour
Paralegals $160 per hour
The firm received a retainer in this case in the amount of $26,738,
of which, $7,000 was drawn for prepetition services rendered in
connection with preparing the Chapter 11 filing, and $1,738 was
paid to the Bankruptcy Court for the Chapter 11 filing fee, leaving
a retainer balance of $18,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David B. Madoff, Esq., a partner at Madoff & Khoury LLP, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
David B. Madoff, Esq.
Steffani M. Pelton, Esq.
Madoff & Khoury LLP
124 Washington Street
Foxboro, MA 02035
Tel: (508) 543-0040
Email: madoff@mandkllp.com
About Park 54 Restaurant Group LLC
Park 54 Restaurant Group LLC, doing business as Park 54 Restaurant
& Lounge, operates a full-service restaurant at 81 Fairmount Avenue
in Hyde Park, Massachusetts, serving American, Southern, Caribbean,
and soul cuisine with signature dishes such as chicken and waffles,
shrimp and lobster grits, and Rasta pasta.
Park 54 Restaurant Group LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Mass.
Case No. 25-12185) on October 10, 2025, listing $627,265 in assets
and $1,837,756 in liabilities. The petition was signed by Tasha
Hull as manager.
Judge Christopher J. Panos presides over the case.
David B. Madoff, Esq. at MADOFF & KHOURY LLP represents the Debtor
as counsel.
PAULAZ ENTERPRISES: Unsecureds Will Get 15% of Claims over 5 Years
------------------------------------------------------------------
Paulaz Enterprises Inc. filed with the U.S. Bankruptcy Court for
the Southern District of Florida a Plan of Reorganization under
Subchapter V dated October 13, 2025.
The Debtor, Paulaz Enterprises Inc., is a for profit corporation
formed in Florida on October 6, 2017. The Debtor is in the business
of manufacturing and installing business signs and graphics and is
located at 3286 N. 29th Court, Hollywood, Florida 33020, which it
leases from American Network Management, Inc.
From its inception, Shrenik Nanavati has been its President and his
wife, Paulomi Nanavati, its vice president. They each own .09% of
the stock of the business, with the Paulaz Enterprises, Inc.
Retirement Fund owning the remaining 99.82% of the entity.
On November 21, 2017, the recently incorporated Debtor, entered
into an Asset Purchase Agreement (the "Agreement") to buy the
assets of Business Forward Inc. (BFI) which was a franchisee of
Sign and Graphics, LLC-Image 360 concept. Alliance Franchise Bands
as the assignee of Sign is the holder of a claim for $58,898.64
(POC-8) for royalties and marketing fund contributions due under
the franchise agreement that Debtor incurred between February 2025
and the date of filing its petition on July 15, 2025.
The Plan Proponent must also show that it will have enough cash
over the life of the Plan to make the required Plan payments and
operate the Debtor's business. The monthly amount needed to fund
Debtor's plan is $11,098.30. This sum includes the payment for the
van loan of $737.23, which is already being paid as part of
Debtor's monthly operating expenses. Debtor's five-year projections
show that it will have sufficient income to meet its obligations
over the five -year period for the three classes of creditors.
The Plan provides for two classes of secured claims, and (1) one
class of non-priority general unsecured creditors holding allowed
claims that will receive distributions, which the Plan Proponent
values at 15 cents on the dollar (15%) (Class 3). The Plan also
provides for the payment of administrative and priority claims and
payment to a special class (Class 4) comprised of mandated payments
to the franchisor, with the result of lack of full payment, being
possible revocation of the franchise license.
The proposed plan shows substantial distributions to the creditors,
totaling $750,596.28 over five years, including estimated
administrative fees for Debtor's counsel and the Subchapter V
Trustee.
Class 3 consists of General Unsecured Claims. The class contains 10
claims totaling $1,389,509.26. This Class shall receive 20
quarterly payments of $10,421.32. This Class will receive a
distribution of 15% of their allowed claims or total plan payments
of $208,426.39. This Class is impaired.
The Plan does not provide for any plan payments to equity holders.
The post confirmation management of the Debtor will continue with
Shrenik Nanavati as the president, retaining his .09% interest in
the Debtor. Likewise, his wife, Paulomi Nanavati will continue as
the vice president, with a .09% interest. The Paulaz Enterprises
Inc. Retirement Fund will continue with a 99.82% ownership
interest.
Payments and distributions under the Plan will be funded by income
generated from the revenues received from the operation of Debtor's
business. Debtor's Projections show a net profit of $126,000.00 in
year one of the plan and similar, but slightly larger amounts in
years two through year five.
The Debtor's monthly obligation for $737.23 for payment of an auto
loan with TD Bank, N.A. for a Mercedes van, is currently being paid
as part of its monthly expenses and is not paid out of the Debtor's
net profits, otherwise used to pay monthly plan obligations of
$10,361.07.
A full-text copy of the Plan of Reorganization dated October 13,
2025 is available at https://urlcurt.com/u?l=hWaCUw from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Chad T. Van Horn, Esq.
Van Horn Law Group, PA
500 NE 4th Street, Suite 200
Fort Lauderdale, FL 33301
Tel: (561) 621-1360
Email: info@cvhlawgroup.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.
PET HOTELS: Claims to be Paid from Property Sale Proceeds
---------------------------------------------------------
Pet Hotels LLC filed with the U.S. Bankruptcy Court for the
District of Puerto Rico a Disclosure Statement and Amended Plan of
Reorganization for Small Business.
The Debtor is a corporation incorporated under the laws of the
State of Wyoming on June 24, 2021, and began operations on the same
date. The Debtor operates a business that was dedicated to a broad
series of operations beginning with pet boarding and daycare.
The Debtor now operates in the area of real estate and investment,
The change occurred after the passage of Hurricane Helene, which
destroyed the economic viability of the boarding business. Upon
losing business after Hurricane Helene, the focus of the business
turned to expanding real estate and development in Puerto Rico.
Real estate rentals commenced in January 2025.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $2,495,000.
The final Plan payment is expected to be paid before 60 months from
the filing of the bankruptcy petition, which was June 10, 2025.
The Debtor projects that all debts will be paid within 60 months.
The Debtor shall place one of the Puerto Rico commercial properties
for sale valued at $185,000.00, to allow for the payment of
post-petition mortgage payments, in addition to creating and
investment fund for future operations. This sale will allow for
payments in the interim until the sale of the commercial real
estate property located in Asheville, North Carolina, within a term
of 12 months.
This Plan of Reorganization proposes to pay creditors of the Debtor
from the sale of commercial real estate property located in
Asheville, North Carolina. The Debtor contemplates the quick sale
of real estate property in the ordinary course of business, located
in Corozal, Puerto Rico, to pay secured creditor arrears, the
remainder as an infusion capital for payments and cash operations.
There are no non-priority claims. This Plan also provides for the
payment of administrative and priority claims.
A full-text copy of the Disclosure Statement dated October 13, 2025
is available at https://urlcurt.com/u?l=XqqA8U from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Robert Millan, Esq.
ROBERT MILLAN
Calle San Jose No. 250
San Juan, PR 00901
Tel: (787) 725-0946
Fax: (787) 725-0946
E-mail: rmi3183180@aol.com
About Pet Hotels LLC
Pet Hotels LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 25-02627)
on June 10, 2025. At the time of filing, the Debtor estimated
$1,000,001 to $10 million in both assets and liabilities.
Robert Millan, Esq., at Millan Law Offices serves as the Debtor's
bankruptcy counsel.
PLURI INC: Kesselman & Kesselman Raises Going Concern Doubt
-----------------------------------------------------------
Pluri Inc. disclosed in a Form 10-K Report filed with the U.S.
Securities and Exchange Commission for the fiscal year ended June
30, 2025, that its auditor has expressed substantial doubt about
the Company's ability to continue as a going concern.
For the year ended June 30, 2025 and 2024, the Company had net
losses of $23.25 million and $21.34 million, respectively.
The Company said, "We have accumulated a deficit of $443,055,000
since our inception in May 2001. We do not anticipate generating
significant revenues from sales of products in the next twelve
months. While we have made meaningful progress in reducing our burn
rate in recent years, it is unlikely that near-term revenues will
exceed our operating costs. We may need to secure additional
sources of liquidity to support the commercialization of our
products and technologies, as well as to sustain our ongoing R&D
activities."
"We have accumulated a deficit of $443,055,000 since our inception
in May 2001. We do not anticipate generating significant revenues
from sales of products in the next 12 months. While we have made
meaningful progress in reducing our burn rate in recent years, it
is unlikely that near-term revenues will exceed our operating
costs. We may need to secure additional sources of liquidity to
support the commercialization of our products and technologies, as
well as to sustain our ongoing R&D activities."
"As of June 30, 2025, our cash balances (cash and cash equivalents,
short-term bank deposits, restricted cash and restricted bank
deposits) totaled to $21,914,000. We are addressing our liquidity
issues by implementing initiatives to allow the continuation of our
activities. Our current operating plan includes various assumptions
concerning the level and timing of cash outflows for operating
activities and capital expenditures, which includes a
cost-reduction plan should it be unable to raise sufficient
additional capital."
Haifa, Israel-based Kesselman & Kesselman, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated September 17, 2025, attached to the Company's Annual Report
on Form 10-K for the year ended June 30, 2025, citing that the
Company has incurred recurring losses and negative cash flows from
operating activities and has an accumulated deficit as of June 30,
2025 and the loan received from European Investment Bank is due on
June 1, 2026. These circumstances raise substantial doubt about its
ability to continue as a going concern.
On April 30, 2020, the German Subsidiary entered a finance
contract, or the Finance Contract, with the EIB, pursuant to which
the German Subsidiary obtained a loan in an amount of EUR20
million, or the EIB Loan. The amount received is due on June 1,
2026, and bears an annual interest of 4% to be paid with the
principal of the Loan. The Company is engaged in advanced
discussions with the EIB regarding a potential restructuring of the
EIB Loan terms which are currently focused on the new terms of the
EIB Loan, including an extension of the current maturity date of
the EIB Loan. However, there is no certainty as to the outcome of
these discussions. As of June 30, 2025, the linked principal and
interest accrued balance was $27,289 and is presented among
short-term liabilities.
During June 2021, the Company received the first tranche in the
amount of EUR20 million pursuant to the EIB Finance Agreement. The
amount received is due to be repaid on June 1, 2026, and bears
annual interest of 4% to be paid together with the principal of the
loan.
"We are currently in advanced discussions with the EIB regarding a
potential restructuring of the EIB Loan terms, which are currently
focused on the new terms of the EIB Loan, including an extension of
the current maturity date of the EIB Loan. However, there is no
certainty as to the outcome of these discussions. As of June 30,
2025, the interest accrued was in the amount of approximately
EUR3.27 million. In addition to the interest payable, the EIB is
also entitled to royalty payments, pro-rated to the amount
disbursed from the EIB Loan, on our consolidated revenues beginning
in the fiscal year 2024 up to and including its fiscal year 2030,
in an amount equal to up to 2.3% of our consolidated revenues below
$350 million, 1.2% of our consolidated revenues between $350
million and $500 million and 0.2% of our consolidated revenues
exceeding $500 million. As of June 30, 2025, we had an accrued
royalty in the amount of $12 thousand. Since the initial funding
period under the EIB Finance Agreement ended on December 31, 2022,
we do not expect to receive additional funds pursuant to the EIB
Finance Agreement."
The Company's ability to successfully carry out our business plan,
is primarily dependent upon our ability to:
(1) obtain sufficient additional capital,
(2) enter licensing or other commercial, partnerships and
collaboration agreements,
(3) provide CDMO services to clients,
(4) finalize discussions with the EIB regarding loan
restructuring and
(5) receive other sources of funding, including non-diluting
sources such as grants.
There are no assurances, however, that the Company will be
successful in obtaining an adequate level of financing needed for
the long-term development and commercialization of our products, or
any financing at all. In the event that the Company is unable to
obtain the required level of financing, its operations may need to
be scaled down or discontinued.
A full-text copy of the Company's Form 10-K is available at:
https://tinyurl.com/477updbw
About Pluri Inc.
Haifa, Israel-based Pluri Inc. is a biotechnology company,
leveraging proprietary cell expansion platform to develop scalable,
cell-based solutions across the healthcare, food, and agriculture
sectors.
As of June 30, 2025, the Company had $38.68 million in total
assets, $39.55 million in total liabilities, and $865 thousand in
total deficit.
PRESTON CYCLES: Court Rejects Bid to Use Cash Collateral
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of South Carolina
denied, without prejudice, Preston Cycles, LLC's bid to use cash
collateral.
Preston Cycles on October 8 sought court approval to use cash
collateral, which consists of funds generated from its operations,
to cover operating expenses.
The Debtor has been financially strained since 2021 due to COVID-19
impacts and personal issues affecting the principal, which led to
multiple loans through the U.S. Small Business Administration and
Harley Davidson Credit Services. These creditors have asserted
liens on future sales and accounts receivable.
About Preston Cycles LLC
Preston Cycles LLC doing business as Thunder Tower Harley-Davidson,
operates a motorcycle dealership and service center in Elgin, South
Carolina. The Company sells new and pre-owned Harley-Davidson
motorcycles, offers parts and accessories, and provides maintenance
and repair services. It serves retail customers in the Columbia
metropolitan area.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. S.C. Case No. 25-03922) on October 6,
2025. In the petition signed by Gene Preston, as president, the
Debtor disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge Elisabetta Gm Gasparini oversees the case.
Roger K. Pruitt, Esq., at RK PRUITT LAW FIRM, represents the Debtor
as legal counsel.
PRIMALEND: Creditors Weigh Forcing Company Into Bankruptcy
----------------------------------------------------------
Eliza Ronalds-Hannon of Bloomberg News reports that PrimaLend,
which provides asset-backed financing to auto dealerships that
cater to subprime buyers, faces growing pressure from creditors
weighing a potential bankruptcy filing after months of missed
payments. The development follows broader distress in the subprime
auto finance market after Tricolor Holdings' downfall, according to
the report.
Bondholders of PrimaLend's $75 million note maturing in 2028 have
hired White & Case LLP to explore legal remedies and restructuring
options, sources familiar with the situation said. The company has
turned to Houlihan Lokey for advisory support as it reviews its
financial position, according to report.
Responding to inquiries, a PrimaLend representative said the lender
is engaged in constructive talks with creditors and is evaluating
all strategic paths to address its debt issues and ensure
continuity of service to clients, the report states.
About PrimaLend
PrimaLend, a U.S.-based commercial finance company, provides
asset-backed lending solutions to buy-here-pay-here (BHPH) auto
dealerships.
PRIME OUTSOURCE: Seeks Chapter 7 Bankruptcy in California
---------------------------------------------------------
On October 15, 2025, Prime Outsource Inc. voluntarily filed for
Chapter 7 bankruptcy protection in the U.S. Bankruptcy Court for
the Central District of California. Court filings show the company
holds liabilities between $1 million and $10 milliont. The petition
further notes that the firm's creditor count falls within the
1–49 range,
About Prime Outsource Inc.
Prime Outsource Inc. operates in the business process outsourcing
(BPO) or staff-leasing industry.
Prime Outsource Inc. sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11909) on October 15,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Martin R. Barash handles the case.
The Debtor is represented by Dominic Afzali, Esq., of Westwood Law
Center.
PROPHASE DIAGNOSTICS: Hires Crown Medical as Collections Counsel
----------------------------------------------------------------
ProPhase Diagnostics NJ, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of New Jersey to employ Crown
Medical Collections, LLC, as special counsel.
Crown will render these services:
a) contact and negotiate with third-party health insurance
payers (approximately 1,100) to collect outstanding COVID- 19
testing Accounts Receivable;
b) conduct discovery related to such Accounts Receivable;
c) advise and counsel the Debtor regarding rights and
remedies; and
d) perform all other services necessary or appropriate to
collect the Accounts Receivable for the Estate.
Crown will receive a contingent fee in the amount of 30 percent of
the gross recovery of any amounts recovered.
As disclosed in the court filings, Crown does not hold or presently
represent any parties with interests adverse to the Debtor's
estate, and is a disinterested person qualified to represent the
Debtor in this case.
The firm can be reached through:
Richard Hersperger, Esq.
Crown Medical Collections, LLC
110 W. High Street
Ebensburg, PA 15931
Tel: (833) 205-4455
About ProPhase Diagnostics NJ Inc.
ProPhase Diagnostics NJ Inc. develops genomic testing solutions,
potential cancer diagnostics and therapeutics, and manufactures and
markets consumer health and wellness products. The subsidiaries
operate within the diagnostics segment, providing laboratory
testing services that were primarily focused on COVID-19 during the
pandemic and are now engaged in efforts to recover large insurance
receivables tied to those operations.
ProPhase Diagnostics NJ Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-19833) on September
22, 2025. In its petition, the Debtor reports estimated assets of
$32,287,616 and estimated liabilities of $465,161.
Honorable Bankruptcy Judge Christine M. Gravelle handles the case.
The Debtor is represented by Thaddeus R. Maciag, Esq., at Maciag
Law, LLC.
PROSPECT MEDICAL: Berkshire Insurers Object to Proposed Plan
------------------------------------------------------------
Randi Love of Bloomberg Law reports that two Berkshire Hathaway
insurance subsidiaries have objected to Prospect Medical Holdings
Inc.'s Chapter 11 exit plan, arguing that it violates their rights
under insurance contracts and nonbankruptcy law.
The insurers -- National Fire & Marine Insurance Co. and Berkshire
Hathaway Specialty Insurance -- said in a filing with the U.S.
Bankruptcy Court for the Northern District of Texas that the plan
improperly treats non-estate assets as part of the bankruptcy
estate, according to the report.
Their objection follows a wave of opposition from roughly 30 other
parties, including individual creditors, insurers, former
employees, and malpractice claimants. These groups argue that
Prospect's proposal fails to meet the requirements for confirmation
and overreaches in its treatment of certain financial and legal
obligations, the report states.
About Prospect Medical Holdings
Prospect Medical Holdings owns Roger Williams Medical Center, Our
Lady of Fatima Hospital, and several other healthcare facilities.
Prospect Medical sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 25-80002) on Jan.
11, 2025. In the petition filed by Paul Rundell, as chief
restructuring officer, the Debtor estimated assets and liabilities
between $1 billion and $10 billion each.
Bankruptcy Judge Stacey G. Jernigan handles the case.
The Debtors' general bankruptcy counsel is Thomas R. Califano,
Esq., and Rakhee V. Patel, Esq., at Sidley Austin LLP, in Dallas,
Texas, and William E. Curtin, Esq., Patrick Venter, Esq., and Anne
G. Wallice, Esq., at Sidley Austin LLP, in New York.
The Debtors tapped Alvarez & Marsal North America, LLC as financial
advisor; Houlihan Lokey, Inc. as investment banker; and Omni Agent
Solutions, Inc. as claims, noticing and solicitation agent.
PUSHPA INTERNATIONAL: Ronald Friedman Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 2 appointed Ronald Friedman, Esq., at
Rimon, PC as Subchapter V trustee for Pushpa International, Inc.
Mr. Friedman will be paid an hourly fee of $800 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Friedman declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Ronald J. Friedman, Esq.
Rimon PC
100 Jericho Quadrangle, Ste. 300
Jericho, NY 11753
Email: ronald.friedman@rimonlaw.com
About Pushpa International Inc.
Pushpa International Inc., doing business as Glamour Couture, filed
a petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D. N.Y. Case No. 25-22969) on October 14, 2025. At the
time of the filing, the Debtor reported between $500,001 and $1
million in assets and between $1 million and $10 million in
liabilities.
Judge Kyu Young Paek presides over the case.
Julie Cvek Curley, Esq., at Kirby Aisner & Curley, LLP represents
the Debtor as legal counsel.
R&R TRANSPORT INC: Tom Howley Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 7 appointed Tom Howley, Esq., at Howley
Law, PLLC as Subchapter V trustee for R&R Transport Inc.
Mr. Howley will be paid an hourly fee of $575 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Howley declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tom Howley, Esq.
Howley Law, PLLC
711 Louisiana Street, Suite 1850
Houston, TX 77002
Telephone: (713) 333-9120
Email: tom@howley-law.com
About R&R Transport Inc.
R&R Transport Inc., doing business as Corporate Delivery Systems,
provides freight, hot shot, and route delivery services, as well as
warehousing solutions, primarily in Houston, Texas. The company
specializes in urgent and scheduled shipments, offering both local
and long-haul transportation to support businesses with
time-sensitive delivery needs. It has been operating in the
logistics and courier industry since 1990.
R&R Transport filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. S.D. Texas Case No. 25-36036) on
October 9, 2025, listing between $500,000 and $1 million in assets
and between $1 million and $10 million in liabilities. Randy
Russell, president of R&R Transport, signed the petition.
Richard L. Fuqua, II, Esq., at Fuqua & Associates, P.C. represents
the Debtor as legal counsel.
R&R TRANSPORT: Tom Howley of Howley Law Named Subchapter V Trustee
------------------------------------------------------------------
The U.S. Trustee for Region 7 appointed Tom Howley, Esq., at Howley
Law, PLLC as Subchapter V trustee R&R Transport & Logistics, LLP.
Mr. Howley will be paid an hourly fee of $575 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Howley declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tom Howley, Esq.
Howley Law, PLLC
711 Louisiana Street, Suite 1850
Houston, TX 77002
Telephone: (713) 333-9120
Email: tom@howley-law.com
About R&R Transport & Logistics LLP
R&R Transport & Logistics, LLP provides courier, delivery, and
logistics services specializing in the transportation of parcels
and freight. It operates from Houston, Texas, serving clients
across regional and interstate routes through its fleet of trucks
and delivery vehicles.
R&R Transport & Logistics sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No.
25-36034) on October 9, 2025. In its petition, the Debtor reported
total assets of $1,124,622 and total debts of $1,489,420.
The Debtor is represented by Richard L. Fuqua, II, Esq., at Fuqua &
Associates, P.C.
RAMON RONQUILLO: Lakeview's Bid for Stay Relief Granted in Part
---------------------------------------------------------------
Judge John K. Sherwood of the United States Bankruptcy Court for
the District of New Jersey granted in part Lakeview Loan Servicing,
LLC's motion for relief from the automatic stay in the bankruptcy
case of Ramon Arturo Ronquillo.
The main asset of the Debtor's bankruptcy estate is real property
at 120 77th Street, North Bergen, New Jersey, where the Debtor
resides with his family.
The Debtor has valued the Property at $750,000 on Schedule A/B.
LoanCare, LLC, has asserted a claim on behalf of Lakeview Loan
Servicing, LLC, against the Property in the amount of $445,118.88
under a mortgage that was executed by the Debtor and Ilka Colon in
favor of CrossCountry Mortgage, LLC. The balance due includes
prepetition mortgage arrears of $44,039.44.
Lakeview's Proof of Claim is considered valid until proven
otherwise under Bankruptcy Rule 3001(f). The Court has reviewed the
Proof of Claim along with the Debtor's Objection which does not
rebut the presumption of validity. The Bankruptcy Court has core
jurisdiction to review Lakeview's Proof of Claim under 28 U.S.C.
Sec. 157(b)(2)(B) and requests for stay relief under Sec.
157(b)(2)(G).
Lakeview filed a motion for relief from the automatic stay because
the Debtor had not made any post-petition mortgage payments.
The Debtor failed to file a formal opposition to Lakeview's Motion.
However, the Court permitted the Debtor to appear and argue, inter
alia, that mortgage payments were not made because he plans to
challenge Lakeview's claim.
The Office of the United States Trustee filed a motion to convert
or dismiss this case because the Debtor had failed to perform the
duties required of a Chapter 11 debtor-in-possession. Specifically,
the Debtor had not filed any monthly operating reports, he had not
paid quarterly fees, and he had failed to amend Schedule A/B to
include personal property.
In opposition to the United States Trustee's Motion, the Debtor
filed a Cross-Motion for Continuation under Chapter 11 Due to
Medical Hardship in which he argued for an extension of time to
file monthly operating reports and amended schedules to July 31,
2025, due to ongoing medical treatment.
The Court heard the Motions on July 29, 2025, and entered two
interim orders:
(1) an Order Rescheduling Certain Hearing Dates and Directing
the Debtor to file Amended Schedules, Monthly Operating Reports and
the Payment of Quarterly Fees, and
(2) an Interim Order on Lakeview's Motion for Relief from Stay
requiring adequate protection payments.
A further hearing on the Motions was scheduled for Aug. 26, 2025,
which was adjourned to be heard with Lakeview's Motion for relief
from stay on Sept. 9, 2025.
In the interim, the Debtor filed additional pleadings pro se
including, but not limited to, an Objection to Claim 3-1, a Motion
to Withdraw the Reference, and a "Notice" that described several
adversary proceedings Debtor intends to file to challenge the
claims filed against him.
On Sept. 9, 2025, the Court heard further argument on the Motions
by Lakeview and the Office of the United States Trustee. The Court
reserved decision and the Debtor had additional time to comply with
the Interim Order on Lakeview's stay relief motion.
The Debtor's Motion to Withdraw the Reference was transmitted to
the District Court. The Motion also seeks a stay of all proceedings
from the District Court under Bankruptcy Rule 5011(d). The Debtor's
Motion to Withdraw the Reference was scheduled to be heard by the
District Court on or about Oct. 20, 2025.
The Debtor has failed to comply with the Court's Interim Order on
Lakeview's Motion for Relief from Stay. Under Bankruptcy Rule
5011(c), a motion to withdraw the reference does not stay
proceedings pending in the Bankruptcy Court, but the proceedings
may be stayed under proper terms and conditions until the motion is
decided. This Court will not stay its Interim Order on Lakeview's
Motion for Relief from Stay indefinitely. The Debtor has 30 days
from the date of this Order to cure any payment defaults under the
Interim Order. If the payment defaults are not cured, the Court
will grant Lakeview's Motion. The Court notes that this relief is
subject to the District Court's power to issue a stay under
Bankruptcy Rule 5011(d).
The Court will stay the remainder of proceedings in the Bankruptcy
Court pending the outcome of the Motion to Withdraw the Reference.
A copy of the Court's Order is available at
https://urlcurt.com/u?l=hSZbMo from PacerMonitor.com.
Ramon Arturo Ronquillo filed for Chapter 11 bankruptcy protection
(Bankr. D.N.J. Case No. 25-12633) on March 14, 2025, listing under
$1 million in both assets and liabilities.
RED RIVER: Johnson & Johnson Faces U.K. Baby Powder Lawsuit
-----------------------------------------------------------
Eshe Nelson of The New York Times reports that Johnson & Johnson is
facing a massive lawsuit in the United Kingdom, where more than
3,000 individuals claim its talc-based baby powder caused cancer.
Filed in the High Court by KP Law, the $1.3 billion suit echoes
long-running legal battles in the United States over the same
product, according to the report.
The plaintiffs accuse the healthcare giant of selling talc products
contaminated with asbestos from 1965 to 2023 despite being aware of
potential health risks. Johnson & Johnson ended sales of its
talc-based baby powder in North America in 2020 and globally in
2023, opting instead for a cornstarch formula, according to
report.
This new case adds to the company's mounting global legal troubles.
In the U.S., J&J faces tens of thousands of lawsuits, including a
recent $966 million jury award to a California family, the report
notes. The firm's previous effort to resolve claims through a $9
billion bankruptcy settlement failed earlier this 2025, the report
states.
Johnson & Johnson's consumer products arm, now operating under
Kenvue, has defended the safety of its talc powder, emphasizing
years of regulatory compliance and testing. The British claimants
say they developed cancers such as ovarian cancer and mesothelioma
after years of exposure, some beginning in childhood, the report
states.
About J&J Talc Units
LLT Management, LLC (formerly known as LTL Management LLC) was a
subsidiary of Johnson & Johnson that was formed to manage and
defend thousands of talc-related claims and oversee the operations
of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue
streams, including royalty revenue streams based on third-party
sales of LACTAID, MYLANTA/MYLICON and ROGAINE products.
LTL Management first filed a petition for Chapter 11 protection
(Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
In the 2021 case, LTL Management tapped Jones Day and Rayburn
Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP
and Shook, Hardy & Bacon LLP as special counsel; McCarter &
English, LLP as litigation consultant; Bates White, LLC as
financial consultant; and AlixPartners, LLP as restructuring
advisor. Epiq Corporate Restructuring, LLC, served as the claims
agent.
On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9
reconstituted the talc claimants' committee and appointed two
separate committees: (i) the official committee of talc claimants
I, which represents ovarian cancer claimants, and (ii) the official
committee of talc claimants II, which represents mesothelioma
claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing this Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an order
denying LTL's stay motion on March 31, 2023, and, on the dame
day,issued its mandate directing the Bankruptcy Court to dismiss
the 2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support
a global resolution on these terms.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed.
3rd Try
In May 2024, J&J announced its subsidiary LLT Management LLC is
soliciting support for a consensual prepackaged bankruptcy plan to
resolve its talc-related liabilities. Under the terms of the plan,
a trust would be funded with over $5.4 billion in the first three
years and more than $8 billion over the course of 25 years, which
J&J calculates to have a net present value of $6.475 billion. If
the Plan is accepted by at least 75% of voters, a bankruptcy was to
be filed under the case name In re Red River Talc LLC. Epiq
Corporate Restructuring, LLC is serving as balloting and
solicitation agent for LLT.
On Sept. 20, 2024, Red River Talc LLC filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Tex. Case No. 24-90505). Porter Hedges LLP
and Jones Day serve as counsel in the new Chapter 11 case. Epiq is
the claims agent.
Paul Hastings LLP is counsel to the Ad Hoc Committee of Supporting
Counsel. Randi S. Ellis is the proposed prepetition legal
representative of future claimants.
RENHURST HOLDINGS: Hires Passman & Jones as Litigation Counsel
--------------------------------------------------------------
Renhurst Holdings, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the Northern District of Texas to hire
Passman & Jones, a Professional Corporation, as special litigation
counsel.
The firm will provide legal representation to the Debtors with
respect to claims against Golden Bank and McCune Construction.
Passman & Jones will charge these hourly rates:
Jerry C. Alexander $575
D. Hunter Polvi $450
Sydney Renfro (candidate) $215
Sheryl Chandler, Paralegal $135
Passman & Jones was paid a $10,000 retainer fee.
According to court filings, Passman & Jones is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Jerry C. Alexander, Esq.
Passman & Jones, A Professional Corporation
2500 Renaissance Tower
1201 Elm Street
Dallas, TX 75270-2599
Phone: (214) 742-2121
About Renhurst Holdings, Inc.
Renhurst Holdings, Inc. manages real estate for others and provides
property appraisal services and is classified as a single-asset
real estate debtor under 11 U.S.C. Section 101(51B).
Renhurst Holdings, Inc. and its affiliates filed their voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. N.D. Tex. Case No. 25-43905) on Oct. 7, 2025, listing $1
million to $10 million in both assets and liabilities. The petition
was signed by Qasim Saeed as president.
Judge Edward L Morris presides over the case.
Joseph Fredrick Postnikoff, Esq. at ROCHELLE MCCULLOUGH, LLP
represents the Debtor as counsel.
RETREAT AT LAGUNA: Involuntary Chapter 11 Case Summary
------------------------------------------------------
Alleged Debtor: Retreat at Laguna Villas, LLC
520 Newport Center Drive
Suite 480
Newport Beach CA 92660
Business Description: Retreat at Laguna Villas is classified as a
single-asset real estate debtor in
accordance with 11 U.S.C. Section 101(51B).
Involuntary Chapter
11 Petition Date: October 15, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-12898
Petitioners' Counsel: David Haberbush, Esq.
HABERBUSH, LLP
444 West Ocean Blvd., Suite 1400
Long Beach, CA 90802
Tel: 562-435-3456
Email: dhaberbush@lbinsolvency.com
A full-text copy of the Involuntary Petition is available for free
on PacerMonitor at:
https://www.pacermonitor.com/view/QVOQ6LQ/Retreat_at_Laguna_Villas_LLC__cacbke-25-12898__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
Specialty DIP LLC $1,500,100
5175 Princess Anne Rd
La Canada CA 91011
Vierergruppe Management Inc. $155,000
1932 E. Deere Ave Suite 150
Santa Ana CA 92705
Coastline Santa Monica Group LLC $30,017,726
520 Newport Center Drive
Suite 480
Newport Beach CA 92660
Moises Camacho $13,170
REVIVE AESTHETICS: Seeks Chapter 7 Bankruptcy in Alaska
-------------------------------------------------------
On October 14, 2025, Revive Aesthetics and Spa Wasilla LLC
voluntarily filed for Chapter 7 bankruptcy protection in the U.S.
Bankruptcy Court for the District of Alaska. Court documents show
the spa reported liabilities listed between $100,001 and $1
million. The company's creditor list includes between 1 and 49
parties.
About Revive Aesthetics and Spa Wasilla LLC
Revive Aesthetics and Spa Wasilla LLC is a limited liability
company.
Revive Aesthetics and Spa Wasilla LLC sought relief under Chapter 7
of the U.S. Bankruptcy Code (Bankr. D. Ala. Case No. 25-00183) on
October 14, 2025. In its petition, the Debtor reports estimated
asset up to $100,000 and estimated liabilities between $100,001 and
$1 million.
The Debtor is represented by Elisha Ononye, Esq., of Law Offices of
Blake Fulton.
RIC LAVERNIA: Receiver Controls Milestone and Otisco, Court Rules
-----------------------------------------------------------------
Judge Michael M. Parker of the United States Bankruptcy Court for
the Western District of Texas granted receiver Travis Vargo's
motion to show authority in the bankruptcy case of Ric (Lavernia)
LLC. In his Motion, the Receiver asks the Court to find that Ali
Choudhri -- who controls two entities involved in this case,
Milestone Capital CRE 1, LLC and Otisco RDX, LLC -- lacks authority
over those entities and therefore the attorneys he hired for the
entities are not authorized to represent the entities.
This dispute -- whether the Receiver or Mr. Choudhri has authority
to litigate on behalf of Milestone and Otisco -- centers on two
turnover orders from Harris County. Mr. Choudhri and two of his
companies (not Milestone or Otisco) are judgment debtors in related
cases in Harris County: 2012-27197-A -- A Case, which involves only
Mr. Choudhri -- and 2012-27197-D -- D Case, which involves Mr.
Choudhri, Dalio Holdings I, LLC, and Dalio Holdings II, LLC. The
Harris County court appointed the Receiver in an April 1 turnover
order (A Case) and a March 31 turnover order (D Case) to aid in
collection efforts, and it amended the orders on April 9 (A Case)
and April 8 (D Case).
In both the A Case and D Case, amended orders appointing the
Receiver include provisions for charging orders, the management and
operation of the judgment debtors' business, and litigation
regarding the judgment debtors. The relevant provisions in each of
the two orders are substantially the same.
Judge Parker explains, "The Amended Orders give the Receiver
exclusive authority to conduct litigation in this bankruptcy case
because it gives him exclusive authority to manage and operate Mr.
Choudhri's business and to litigate cases regarding Mr. Choudhri in
which the Receiver has an interest. The Receiver has the authority,
exclusive of Mr. Choudhri, to litigate this case because he has
exclusive authority 'to manage and operate the business of' Mr.
Choudhri. The Receiver's authority to manage and operate Mr.
Choudhri's business -- to manage and operate where Mr. Choudhri has
the right to manage and operate -- includes the authority to
litigate claims. Any rights Mr. Choudhri has to conduct Milestone's
and Otisco's business or to litigate on their behalf are vested
exclusively in the Receiver, and Mr. Choudhri submitted no evidence
that the Receiver gave him express approval to do anything."
According to the Court, the Receiver's exclusive authority to
litigate claims also stems from his interest in any value due Mr.
Choudhri from Milestone and Otisco. Mr. Choudhri has no authority
individually or with respect to Milestone and Otisco in this case.
In light of Mr. Choudhri lacking the authority to litigate this
case in any capacity, any attorneys representing Mr. Choudhri
individually or hired by him to act in any capacity on behalf of
Milestone and Otisco -- including Justin Rayome and Lyndel Vargas
with Cavazos Hendricks Poirot, PC -- are not authorized to do so.
The Court finds the Receiver has exclusive authority to represent
the interests of Milestone and Otisco in this case and related
adversaries -- and even the interests of Mr. Choudhri individually,
if he has any. Prospectively, the Court will strike any filings
from anyone who purports to file on behalf of Milestone, Otisco, or
Mr. Choudhri without the Receiver's express approval.
To determine what, if any, retrospective relief may be available to
the Receiver, the Court will require the relevant parties to
provide briefing on the retrospective remedies that should be
applied in this case and related adversary proceedings.
Briefs shall be filed on the docket no later than Nov. 7, 2025, at
3:00 p.m. Responses are due no later than Nov. 17, 2025, at 3:00
p.m.
A copy of the Court's Order dated October 17, 2025, is available at
http://urlcurt.com/u?l=mePrgyfrom PacerMonitor.com.
About Ric (Lavernia) LLC
RIC (Lavernia) LLC is a Texas limited liability company that owns
real property located in Wilson County, Texas (the "Property").
The Debtor filed its voluntary petition for Chapter 11 protection
(Bankr. W.D. Tex. Case No. 24-51195) on June 27, 2024, listing $1
million to $10 million in assets and $100,000 to $500,000 in
liabilities. Gianfriddo as authorized representative, signed the
petition.
Judge Michael M Parker oversees the case.
BRYAN CAVE LEIGHTON PAISNER LLP serves as the Debtor's legal
counsel.
RIKERS ISLAND: Court Denies City's Receivership Order Review Bid
----------------------------------------------------------------
Jacob Kaye of Queens Daily Eagle reports that U.S. District Judge
Laura Swain has denied New York City's motion to revisit her order
transferring control of Rikers Island to a federal receiver,
marking another setback for Mayor Eric Adams' administration.
The judge reaffirmed her May decision, rejecting arguments that
recent improvements at the jail complex made receivership
unnecessary, according to the report. She also refused the city's
bid to install Correction Commissioner Lynelle Maginley-Liddie as
compliance director in place of a receiver.
Swain concluded that the city's evidence -- drawn largely from data
predating her earlier ruling -- did not meet the standard for
reconsideration. The judge emphasized that Rikers remains plagued
by violence and mismanagement despite years of promised reforms.
"Defendants are not entitled to take a second bite at the apple,"
she wrote, underscoring the court's frustration with repeated
delays and failures to comply with reform mandates.
City officials offered no substantive comment, while the Legal Aid
Society celebrated the ruling as a necessary step toward meaningful
change. "The court meant what it said," a spokesperson noted,
calling the decision a victory for detainees enduring dangerous
jail conditions.
Swain will now move ahead with selecting a federal remediation
manager who will have the power to reform DOC policies, discipline
staff, and implement compliance measures. While the full scope of
the receiver's authority remains under review, Swain is expected to
finalize details in the coming weeks as Rikers' oversight
transitions away from city control, the report states.
About Rikers Island
Rikers Island houses New York City’s largest correctional
facility.
RIVERSIDE EXPRESS: Court OKs Interim Use of Cash Collateral
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Riverside Division, granted Riverside Express Car Wash, LLC's
interim approval to use cash collateral through December 4.
The interim order required the Debtor to make monthly payments of
$10,400 to T Bank N.A. as adequate protection, with the first
payment due this month.
The next hearing is scheduled for December 4.
T Bank is represented by:
Joshua K. Partington, Esq.
Nicholas S. Couchot, Esq.
Rachel A. McMains, Esq.
Snell & Wilmer, L.L.P.
600 Anton Blvd, Suite 1400
Costa Mesa, CA 92626-7689
Telephone: 714.427.7000
Facsimile: 714.427.7799
jpartington@swlaw.com
ncouchot@swlaw.com
rmcmains@swlaw.com
About Riverside Express Car Wash LLC
Riverside Express Car Wash LLC operates a car wash facility in
Riverside, California.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 6:25-bk-14654-RB) on
July 10, 2025. In the petition signed by Amariah Olson, managing
member, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Magdalena Reyes Bordeaux oversees the case.
Michael Jay Berger, Esq., at Law Offices of Michael Jay Berger,
represents the Debtor as legal counsel.
RIVULET ENTERTAINMENT: Financial Strain Raises Going Concern Doubt
------------------------------------------------------------------
Rivulet Entertainment, Inc. disclosed in a Form 10-Q Report filed
with the U.S. Securities and Exchange Commission for the quarterly
period ended March 31, 2025, that there is substantial doubt about
its ability to continue as a going concern.
The Company recorded net losses of $554,539 and $9,246 for the
three months ended March 31, 2025 and 2024, respectively. For the
nine months ended March 31, 2025 and 2024, the Company reported net
losses of $4.18 million and $120,402, respectively.
The Company had cash of $100,633 as of March 31, 2025, negative
working capital of $22.6 million and shareholders' deficit of $9.2
million. Further, during the nine months ended March 31, 2025, the
Company had a cash flow used in operations of $9.3 million for the
nine-month period ended March 31, 2025. As such, the Company
concluded that there is substantial doubt about its ability to
continue as a going concern.
The Company hopes to mitigate the conditions or events that raise
substantial doubt about its ability to continue as a going concern
through its future sales of movie rights and future capital
raises.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3arnr6t8
About Rivulet Entertainment, Inc.
Rivulet Entertainment, Inc. is a passionate and innovative
production company dedicated to creating captivating and
thought-provoking cinematic experiences. With a focus on
storytelling that resonates with audiences of all backgrounds, the
Company strives to bring unique narratives to the screen through a
blend of creativity and technical expertise.
As of March 31, 2025, the Company had $20.72 million in total
assets, $25.49 million in total liabilities, and $4.76 million in
total stockholders' deficit.
ROBRAD TOOL: Case Summary & Nine Unsecured Creditors
----------------------------------------------------
Debtor: Robrad Tool & Engineering, Inc.
564 E Juanita Ave
Mesa, AZ 85204
Business Description: Robrad Tool & Engineering, Inc., based in
Mesa, Arizona, manufactures high-precision
complex machined parts and assemblies for
aerospace and defense clients. Founded in
1978, the Company operates a 20,000-square-
foot facility equipped with CNC lathes,
mills, grinding machines, EDM, and assembly
lines, supporting production from bar stock,
castings, and forgings in both low- and
high-temperature alloys. Robrad is
ISO9001:2000 and AS9100B certified and
employs engineers, programmers, and
machinists experienced in multi-axis
programming, CAD/CAM design, and high-speed
machining.
Chapter 11 Petition Date: October 16, 2025
Court: United States Bankruptcy Court
District of Arizona
Case No.: 25-09862
Debtor's Counsel: Christopher R. Kaup, Esqw.
TIFFANY & BOSCO, P.A.
2525 E. Camelback Road, Suite 700
Phoenix, AZ 85016
Tel: (602) 255-6000
Fax: (602) 255-0103
Email: crk@tblaw.com
Total Assets: $593,195
Total Liabilities: $2,662,489
The petition was signed by Douglas R. Gottwald as president.
A full-text copy of the petition, which includes a list of the
Debtor's nine unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/CQZRFNQ/ROBRAD_TOOL__ENGINEERING_INC__azbke-25-09862__0001.0.pdf?mcid=tGE4TAMA
RWE SERVICES: Seeks to Hire Norred Law PLLC as Bankruptcy Counsel
-----------------------------------------------------------------
RWE Services LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Texas to hire Norred Law PLLC as counsel.
Norred Law will render these services:
a. advise the Debtor of its powers and duties in the
management of its property;
b. attend meetings and negotiate with representatives of
creditors and other parties in interest;
c. assist the Debtor in preparation of all administrative
documents required to be filed or prepared herein, and to prepare,
on behalf of the Debtor, all necessary applications, motions,
responses, answers, orders, reports, and other legal documents as
applicable;
d. take such actions as are necessary to preserve the assets
and interests of the estate, including prosecution of actions on
behalf, defending any action commenced against the Debtor and
representing the Debtor's interest concerning all litigation in
which the Debtor is involved, including objections to claims filed
against the estate;
e. advise the Debtor in connection with any potential sale of
assets;
f. assist the Debtor in formulating a disclosure statement,
and in the formulation and confirmation of a plan of
reorganization;
g. appear before the Court and the United States Trustee, and
to protect the interest of the Debtor estate before the Court and
Trustee;
h. perform any and all other legal services that may be
necessary to protect the rights and interests of the Debtor in the
proceeding and any actions later commenced in this chapter 11 case.
The firm will be paid at these rates:
Attorneys $300 to $525 per hour
Paraprofessionals $90 to $120 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $12,000 from the
Debtor.
Clayton Everett, Esq., an attorney at Norred Law, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Clayton L. Everett, Esq.
Norred Law, PLLC
515 E. Border Street
Arlington, TX 76010
Telephone: (817) 704-3984
Email: clayton@norredlaw.com
About RWE Services LLC
RWE Services LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Texas Case No. 25-43579) on September
19, 2025, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Edward L. Morris presides over the case.
Warren V. Norred, Esq. at Norred Law PLLC represents the Debtor as
legal counsel.
SAKS GLOBAL: Angel Oak Marks $250,000 in Old Notes at 77% Off
-------------------------------------------------------------
Angel Oak Strategic Credit Fund has marked $250,000 in 11.00%
Senior Secured Notes due December 15, 2029, issued by Saks Global
Enterprises LLC to market at $57,500, or 23% on the dollar,
according to the Fund's Semi-Annual Report on Form N-CSRS for the
period ended July 31, 2025, delivered to the Securities and
Exchange Commission on October 6.
Early in October 2025, Moody's Ratings affirmed Saks Global's Caa3
corporate family rating and Caa3-PD probability of default rating.
In addition, Moody's assigned a Caa2 rating to the new senior
secured SPV notes issued at Saks Global's subsidiary SGUS LLC, a Ca
rating to Saks Global's senior secured second out (FL20) exchange
notes and a C rating to Saks Global's senior secured third out
(FL30) exchange notes. Moody's said the rating for the remaining
stub of senior secured notes issued in December 2024 that were not
exchanged was downgraded to C from Ca. The outlook is negative for
Saks Global and SGUS LLC.
In August, Saks Global exchanged its $2.2 billion senior secured
notes issued in December 2024 into three tranches of debt:
1) $762.5 million special purpose vehicle (SPV) notes issued
by SGUS LLC of which $162.5 million was from the exchange and $600
million was new money,
2) $1.44 billion senior secured second out FL20 notes issued
by Saks Global, and
3) $441 million senior secured third out FL30 notes also
issued by Saks Global.
All the notes mature in December 2029.
Following the exchange only $51 million of the existing senior
secured notes remain which are now the most junior tranche of debt
in the Company's capital structure. The exchange was consummated
at a discount of about $115 million of the original amount of
senior secured notes. The proceeds of the $600 million of new
money were used to pay down revolver borrowings and for general
corporate purposes.
(ii) an instruction letter to the Old Notes Trustee to
authorize and instruct the Old Notes Trustee to enter into certain
security and intercreditor agreements and a payment administration
agreement, in each case upon the terms and subject to the
conditions set forth in a confidential offering memorandum and
consent solicitation statement, dated July 21, 2025.
The Exchange Offer launched in July followed Saks' announcement in
June that it has secured $600 million in financing commitments from
a majority of its existing bondholders. The transaction included a
$400 million First-In, Last-Out (FILO) asset-based credit facility,
with $300 million funded on June 27 and an additional $100 million
to be funded upon completion of the bond exchange. The transaction
also includes $200 million in additional commitments subject to the
satisfaction of certain conditions.
PJT Partners and BofA Securities, Inc. served as financial advisors
to Saks Global in connection with the transaction.
Willkie Farr & Gallagher LLP and Kirkland & Ellis LLP served as
legal counsel to Saks Global.
Angel Oak may be reached at:
Ward Bortz, President
3344 Peachtree Rd. NE, Suite 1725
Atlanta, GA 30326
The Fund is advised by:
Stephen T. Cohen, Esq.
Matthew E. Barsamian, Esq.
Dechert LLP
1900 K Street NW
Washington, DC 20006
Saks Global owns and operates world-class luxury retailers,
including Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and
Saks OFF 5TH, and a portfolio of prime U.S. real estate holdings
and investments.
SANTA ANA EXPRESS: Gets Extension to Access Cash Collateral
-----------------------------------------------------------
Santa Ana Express Car Wash, LLC received another extension from the
U.S. Bankruptcy Court for the Central District of California,
Riverside Division, to use cash collateral.
The order extended the Debtor's authority to use cash collateral
from October 2 to December 4, allowing the Debtor to fund
operations.
The Debtor must make monthly adequate protection payments of
$10,400 to T Bank N.A., starting this month.
The next hearing is scheduled for December 4.
The Debtor operates a car wash located at 2035 N. Tustin Avenue in
Santa Ana, California. The property, which it owns, has an
estimated market value of $4.290 million, and the Debtor's personal
property assets, including cash, supplies, and equipment, are
valued at approximately $133,956. The secured creditors include T
Bank, N.A. with a $3.82 million claim, Bay Area Development Co.
with a $2.27 million SBA loan, and the Orange County Treasurer-Tax
Collector with a property tax claim of $180,000. All secured claims
are backed by the real property, totaling approximately $6.27
million in secured obligations.
The Debtor has no scheduled priority claims, but there are disputed
general unsecured claims arising from two lawsuits, one involving
breach of contract and another concerning alleged vehicle damage.
About Santa Ana Express Car Wash LLC
Santa Ana Express Car Wash LLC, doing business as Speedy Clean Car
Wash, operates a car wash facility at 2035 N. Tustin Avenue in
Santa Ana, California. The Company provides quick, environmentally
friendly car wash services featuring a wash completed in
approximately six minutes along with free vacuum stations and
monthly membership options.
Santa Ana Express Car Wash LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-15662) on
August 12, 2025. In its petition, the Debtor reports estimated
assets and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Mark D. Houle handles the case.
The Debtor is represented by Michael Jay Berger, Esq. at LAW
OFFICES OF MICHAEL JAY BERGER.
SCARLET KITCHEN: Amends WebBank Secured Claim Pay
-------------------------------------------------
Scarlet Kitchen & Lounge, LLC submitted a Modified Plan of
Reorganization.
This Plan has a 60-month term which ends on December 31, 2030. Over
this term, the Debtor will have $300,000.00 in projected disposable
income.
Under the Plan, the Debtor proposes to pay $311,784.49 to
creditors. Plan payments will be paid on a quarterly basis with
each quarterly payment due not later than the last day of each
calendar quarter (i.e., March 31, June 30, September 30, and
December 31).
This Plan of Reorganization proposes to pay creditors of the Debtor
from disposable operating income from normal business operations.
Overall, the Plan projects to pay a 20.9% distribution to general
unsecured creditors. The Plan provides for the payment of
$120,000.00 total to general unsecured claims from 1Q'29 to 4Q'30,
which shall be distributed pro rata to holders of allowed general
unsecured claims.
The Plan provides for the payment of administrative expense claims
($42,483.12 est.) in full by 3Q'26, and payment of priority tax
claims in full with legal interest by 1Q'29.
Class 1 consists of Priority claims. Not applicable. There are no
priority claims other than priority tax claims, which are treated
as unclassified claims.
Class 2(a) consists of the Secured claim of WebBank. The Class 2(a)
claim shall be allowed as a secured claim against Debtor's cash and
accounts receivable on the Petition Date in the amount of
$5,069.01, which shall be paid in a lump sum payment on the
Effective Date.
Like in the prior iteration of the Plan, each allowed Class 3(a)
general unsecured claim shall receive a pro rata distribution of
equal quarterly payments in the amount of $15,000.00 beginning in
1Q'29 and ending in 4Q'30.
The Plan will be funded with the following: (i) cash on hand, (ii)
Debtor's protected disposable income over a period of sixty months,
and (iii) pursuit of other estate claims and causes of action, if
any.
A full-text copy of the Modified Plan of Reorganization dated
October 9, 2025 is available at https://urlcurt.com/u?l=PUqroT from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Donald W. Reid, Esq.
LAW OFFICE OF DONALD W. REID
PO Box 2227
Fallbrook, CA 92088
Telephone: (951) 777-2460
E-mail: don@donreidlaw.com
About Scarlet Kitchen & Lounge
Scarlet Kitchen & Lounge, LLC is a California limited liability
company formed in 2018.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11641) on June 17,
2025, listing up to $500,000 in assets and up to $1 million in
liabilities. Paige Riordan, owner and executive chef, signed the
petition.
Judge Scott C. Clarkson oversees the case.
Donald Reid, Esq., at the Law Office of Donald W. Reid, is the
Debtor's legal counsel.
SCHAEFER RECOGNITION: Dawn Maguire Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 14 appointed Dawn Maguire, Esq., at
Guttilla Murphy Anderson, as Subchapter V trustee for Schaefer
Recognition & Media Group, LLC.
Ms. Maguire will be paid an hourly fee of $380 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Maguire declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Dawn Maguire, Esq.
10115 E. Bell Rd., Ste. 107 #498
Scottsdale, AZ 85260
Phone: (480) 304-8302
Fax: (480) 304-8301
Email: Trustee@MaguireLawAZ.com
About Schaefer Recognition & Media Group
Schaefer Recognition & Media Group LLC sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Ariz. Case No. 25-09689) on October 10, 2025. In its petition, the
Debtor reported up to $100,000 in assets and between $100,001 and
$1 million in liabilities.
Honorable Bankruptcy Judge Daniel P. Collins handles the case.
The Debtor is represented by Patrick F. Keery, Esq., at Keery
McCue, PLLC.
SCHAEFER RECOGNITION: Hires Keery McCue PLLC as Bankruptcy Counsel
------------------------------------------------------------------
Schaefer Recognition & Media Group LLC seeks approval from the U.S.
Bankruptcy Court for the District of Arizona to hire Keery McCue,
PLLC as counsel.
The professional legal services KM shall render include, without
limitation, preparation of pleadings and applications, conducting
examinations incidental to administration, advising the Debtor of
its rights, duties, and obligations under Chapter 11 of the
Bankruptcy Code, taking any and all other necessary action incident
to the proper preservation and administration of this Chapter 11
estate, and advising the Debtor in the formulation and presentation
of a plan pursuant to Chapter 11 of the Bankruptcy Code, the
disclosure statement and concerning any and all matters relating
thereto.
The firm will be paid at $175 to $550 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Keery McCue PLLC is a "disinterested person" within the meaning of
Section 101(14) of the Bankruptcy Code, according to court
filings.
The firm can be reached at:
Martin J. McCue, Esq.
Patrick F. Keery, Esq.
Keery McCue PLLC
6803 East Main Street, Suite 1116
Scottsdale, AZ 85251
Telephone: (480) 478-0709
Facsimile: (480) 478-0787
E-mail: MJM@KEERYMCCUE.COM
PFK@KEERYMCCUE.COM
About Schaefer Recognition & Media Group LLC
Schaefer Recognition & Media Group LLC is a limited liability
company.
Schaefer Recognition & Media Group LLC sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Ariz. Case No. 25-09689) 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 Daniel P. Collins handles the case.
The Debtor is represented by Patrick F. KEERY, Esq. of KEERY MCCUE,
PLLC.
SEABRIGHT SOCIAL: Seeks Chapter 7 Bankruptcy in California
----------------------------------------------------------
A historic Santa Cruz brewery, Seabright Social, has shut its doors
permanently and filed for Chapter 7 bankruptcy, largely due to the
ongoing Murray Street Bridge replacement project, BizJournals.com
reported. The $50 million seismic retrofit has cut off a vital
route over the Yacht Harbor, significantly reducing foot traffic to
the Seabright area and hurting local businesses, according to the
report. Completion of the bridge project is not anticipated until
early 2028.
Owner Jon Bates said the brewery's revenue fell immediately by 15%
after the first lane closure in March 2025, with further losses
when the bridge fully closed in June 2025, the news agency related.
Attempts to scale back operations, including reducing employee
hours, were insufficient to prevent financial collapse. Bates
highlighted that small businesses like restaurants cannot endure
such prolonged revenue interruptions, the report states.
Seabright Social is among the first casualties of the bridge
project's economic ripple effects. Other nearby businesses are
lobbying the city to open an unused rail bridge for pedestrians and
cyclists to restore access, but implementation has been slow. Many
local establishments continue to face financial strain due to the
extended construction disruption, the report relays.
About Seabright Social
Seabright Social, formerly known as Seabright Brewery, is one of
California's earliest-established brewpub established in 1988. In
March 2020, Keiki and Jason McKay, owners of Cantine Winepub in
Aptos, along with Jon Bates, formerly of Soif in Santa Cruz,
purchased the brewery. They rebranded it as Seabright Social,
updating the space and menu while honoring its heritage. Chef
Desmond Schneider developed a gastropub-style menu with shareable
plates, sandwiches, and Roman-style flatbreads.
Seabright Social sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 25-51588) on October 14,
2025.
Honorable Bankruptcy Judge Stephen L. Johnson handles the case.
The Debtor is represented by Aaron Lipton, Esq. of The Law Offices
Of Aaron Lipton.
SERENADE NEWPORT: Trustee Hires Ringstad as Legal Counsel
---------------------------------------------------------
Thomas H. Casey, Chapter 11 Trustee for Serenade Newport LLC, seeks
approval from the U.S. Bankruptcy Court for the Central District of
California to employ Ringstad & Sanders LLP as his general
bankruptcy counsel in the Chapter 11 case.
The Firm will provide these services:
(a) provide general legal advice, representation and counsel on
matters relating to administration of this Chapter 7 proceeding,
including obtaining orders compelling Debtor to comply with its
duties under Section 521 of the Bankruptcy Code;
(b) undertake legal analysis, prepare and file any pleadings,
motions, notices, or orders which may be required for the orderly
administration of this bankruptcy estate, including but not limited
to, preparation of notices, motions, and other documentation
regarding objections to claims of exemption and any sales of
property of the Estate;
(c) commence actions, wherever and whenever appropriate, and
provide legal advice regarding the marshaling and protection of the
assets of Debtor for the benefit of creditors of the Estate;
(d) investigate and prosecute preference, turnover, or fraudulent
conveyance actions which may exist for the benefit of creditors of
the Estate, including the Adversary Proceeding; and
(e) object to claims, if any, after review by the Trustee, and if
objections are filed, conduct legal analysis, provide legal advice,
prepare for and attend hearings, draft all pleadings relevant
thereto, and engage in necessary discovery.
Ringstad & Sanders LLP proposes to render services at these hourly
rates:
Todd C. Ringstad $725
Nanette D. Sanders $725
Karen Sue Naylor $625
Paralegals: Becky Metzner $195
Arlene Martin $150
According to court filings, Ringstad & Sanders LLP is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code. Neither the Firm nor any of its attorneys has any
connection with the Debtor, creditors, or the Office of the U.S.
Trustee, except as disclosed in the Declaration of Todd C.
Ringstad.
The firm can be reached at:
Todd C. Ringstad, Esq.
Nanette D. Sanders, Esq.
RINGSTAD & SANDERS LLP
23101 Lake Center Drive, Suite 355
Lake Forest, CA 92630
Telephone: (949) 851-7450
Facsimile: (949) 851-6926
E-mail: todd@ringstadlaw.com; nanette@ringstadlaw.com
About Serenade Newport LLC
Serenade Newport LLC is a single-asset real estate company with
property located at 1501 Serenade Terrace in Corona Del Mar,
California.
Serenade Newport LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-11898) on July 11,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Mark D. Houle handles the case.
The Debtors are represented by Robert P. Goe, Esq. at Goe Forsythe
& Hodges LLP.
SONDER HOLDINGS: In Talks with Creditors to Avert Bankruptcy Filing
-------------------------------------------------------------------
Reshmi Basu of Bloomberg News reports that Sonder Holdings Inc., a
hospitality company specializing in boutique apartments and
short-term rentals, is seeking to negotiate an out-of-court deal
with its creditors in a bid to avoid filing for bankruptcy,
according to sources familiar with the discussions who requested
anonymity because the talks are private.
Bloomberg reported that a spokesperson for Sonder declined to
comment on the matter, while representatives from its legal
adviser, Kirkland & Ellis LLP, did not immediately respond to
requests for comment on Friday, October 17, 2025.
About Sonder Holdings Inc.
Sonder Holdings Inc., provides short and long-term accommodations
to travelers in various cities across North America, Europe, and
the Middle East. It also operates boutique hotels.
STANFORD AND 12TH: Taps Michel Miller as General Counsel
--------------------------------------------------------
Stanford and 12th Street LP seeks approval from the U.S. Bankruptcy
Court for the Central District of California, Los Angeles Division,
to employ Jason Wallach of Michel Miller Park ALC as its general
counsel.
Mr. Wallach will provide these services:
(a) file the Chapter 11 Petition and all required Schedules and
Statements;
(b) prepare and file pleadings in adversary proceedings and
contested matters;
(c) comply with the Guidelines of the U.S. Trustee;
(d) deal with creditors and other interested parties;
(e) assist in the formulation, presentation, and confirmation of a
Plan; and
(f) advise the Debtor-in-Possession in the performance of its
duties, including fiduciary duties, together with such additional
services as may be required in the Chapter 11 process.
Mr. Wallach will receive an hourly rate of $670, with equal or
lower hourly rates for other attorneys and paralegals of Michel
Miller Park ALC. The firm may draw from retainer funds (a) to
reimburse the $1,738 filing fee and (b) to pay monthly fees in
accordance with the notice and other procedures of the U.S.
Trustee.
According to court filings, Mr. Wallach is a "disinterested person"
as set forth in his Statement of Disinterestedness. He has no
connections with any creditors, other parties in interest, their
attorneys, accountants, the U.S. Trustee, or any person employed in
the U.S. Trustee's office.
The firm can be reached at:
Jason Wallach, Esq.
MICHEL MILLER PARK ALC
1901 Avenue of the Stars, Suite 1100
Los Angeles, CA 90067
Telephone: (310) 620-8270
Direct: (818) 404-1249
E-mail: JWallach@mmplawyers.com
About Stanford and 12th Street LP
Stanford and 12th Street LP wholesales clothing, fabrics, and
sewing supplies to retailers and commercial clients across the
United States. The Company distributes men's, women's, and
children's apparel and supplies piece goods and notions used in
garment production.
Stanford and 12th Street LP sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-18089) on
September 15, 2025. In its petition, the Debtor reports estimated
assets between $10 million and $50 million and estimated
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Sheri Bluebond handles the case.
The Debtor is represented by Jason Wallach, Esq. at Michel Miller
Park.
STANFORD MART: Taps Abbasi Law as General Insolvency Counsel
------------------------------------------------------------
Stanford Mart LP seeks approval from the U.S. Bankruptcy Court for
the Central District of California, Los Angeles Division, to employ
Matthew Abbasi, Esq. of Abbasi Law Corporation to serve as general
insolvency counsel.
Mr. Abbasi will provide these services:
(a) represent the Debtor at its Initial Debtor Interview;
(b) represent the Debtor at its meeting of creditors pursuant to
Section 341(a) of the Bankruptcy Code;
(c) represent the Debtor at all hearings before the U.S.
Bankruptcy Court involving the Debtor as Debtor-in-Possession and
as reorganized Debtor, as applicable;
(d) prepare on behalf of the Debtor all necessary applications,
motions, orders, and other legal papers;
(e) advise the Debtor regarding matters of bankruptcy law,
including the Debtor's rights and remedies with
respect to its assets and the claims of creditors;
(f) represent the Debtor with regard to contested matters;
(g) prepare a disclosure statement and negotiate, prepare, and
implement a plan of reorganization;
(h) analyze secured, priority, and general unsecured claims;
(i) negotiate with creditors regarding the amount and payment of
their claims;
(j) object to claims as appropriate;
(k) perform all other necessary legal services for the Debtor,
other than adversary proceedings requiring a separate written
agreement;
(l) advise the Debtor with respect to its powers and duties as a
Debtor-in-Possession; and
(m) perform other legal services necessary for the efficient
administration of this Chapter 11 case.
Mr. Abbasi's hourly rate is $400. ALC's paralegal hourly rate is
$60, and its law clerk hourly rate is $25. The firm received an
initial retainer deposit of $20,000, which also covered the case
filing fee of $1,738 and related expenses.
Abbasi Law Corporation is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code and complies with
Section 327(a), according to court filings.
The firm can be reached at:
Matthew Abbasi, Esq.
ABBASI LAW CORPORATION
6320 Canoga Ave., Suite 950
Woodland Hills, CA 91367
Telephone: (310) 358-9341
Facsimile: (888) 709-5448
E-mail: matthew@malawgroup.com
About Stanford Mart LP
Stanford Mart LP sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 2:25-bk-17990-BB) on
September 11, 2025.
At the time of filing, the Debtor had estimated assets of $0 to
$50,000 and liabilities of $0 to $50,000.
Judge Sheri Bluebond oversees the case.
Abbasi Law Corporation serves as the Debtor's legal counsel.
STAR INTERMEDIATE: Fitch Affirms B+ LongTerm IDR, Outlook Negative
------------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Star Intermediate Holdings, Inc. and Star Parent, Inc.
(collectively, Syneos Health or Syneos) at 'B+'. Fitch has also
affirmed the senior secured instrument ratings of Star Parent, Inc.
at 'BB-' with a Recovery Rating of 'RR3'. The Rating Outlooks
remain Negative.
The affirmation reflects Syneos' progress over the past 12 months
in stabilizing its business and improving operational execution
while managing end-market volatility. If the company returns to
growth in 2026 and achieves EBITDA growth in line with Fitch's
expectations, leverage will fall to 6.0x by YE 2026 and remain in
the 5.0x-6.0x range thereafter, consistent with the 'B+' IDR.
However, the Negative Outlook reflects execution risks to
reestablishing growth and improving earnings in a volatile
operating environment. These risks are heightened by Syneos'
elevated leverage relative to global peers.
Key Rating Drivers
Positive Trajectory but Risks Remain: Fitch expects Fitch-defined
EBITDA leverage to decline to 6.0x by YE 2026, driven primarily by
EBITDA growth. Fitch also expects Fitch-defined EBITDA margins to
rise from 9% in 2024 to 10%-11% in 2025 and 11%-13% thereafter.
Fitch's assumed near-term margin improvement reflects Syneos'
progress over the past 12 months in stabilizing its business and
rightsizing its cost structure. Despite volatile end-market demand,
Fitch sees progress in operational execution in the clinical and
commercial segments and assumes these trends will continue.
However, the Negative Outlook reflects Fitch's view of material
near-term execution risks regarding Syneos' ability to return to
growth and achieve margin improvement. An uncertain macroeconomic
environment and policy uncertainty leave little room for error,
particularly as Syneos operates with a highly leveraged balance
sheet relative to global peers.
Drug Pricing Uncertainty Affects Growth: Fitch believes contract
research organizations' (CROs) customers may continue to slow
decision making and have elevated cancellation rates amid drug
pricing uncertainty. Fitch believes that meaningful progress on
drug pricing and tariffs will require concrete agreements. The
pharmaceutical industry seeks clarity and assurance from the
government to reduce the risk of future adverse policies, and the
government demands commitments and actions from the pharmaceutical
industry to lower drug prices. However, the recent agreement
between Pfizer Inc. and the Trump administration may serve as a
template for other drugmakers.
Subdued Near-Term Growth: The Negative Outlook reflects the risk of
further delays or weaker growth driven by deteriorating
macroeconomic conditions and potential expansion of the
Most-Favored-Nation policy beyond Medicaid, which would likely
reduce biopharmaceutical research and development (R&D) spending
and the scope and scale of future clinical trials. Fitch assumes
flat to modest revenue growth in 2026 and low-single-digit growth
in 2027 as Fitch expects bookings to improve in the second half of
2025. However, end-market volatility will likely keep
biopharmaceutical companies cautious on spending and focused on
assets with promising results.
Near-Term Negative Cash Flow: Fitch forecasts negative FCF in 2025
due to billing delays from deployment of a new cloud-based
financial system. However, Fitch believes Syneos will catch up on
billings in 4Q25. Consistent cash flow generation is a common
characteristic among global CROs, and Fitch expects the company to
maintain its ability to generate positive cash flow through market
cycles. This is supported by a high level of recurring revenue from
clinical services, Syneos' asset-light business model and its
ability to preserve cash in periods of stress due to low capital
expenditure (capex) requirement and cost-cutting efforts.
Growing Competition: Fitch believes Syneos will remain disciplined
yet flexible with its pricing strategy to balance profitability,
service quality and long-term benefits. The clinical market is
competitive with multiple CROs vying for a shrinking - or, more
likely, evolving - pool of new projects, particularly among
biotechnology firms that rely heavily on CROs for clinical
development amid a volatile funding environment. Large
pharmaceutical companies will continue to reprioritize assets due
to patent expirations and pricing pressures. However, Fitch
believes the fundamentals of the CRO industry remain intact.
Innovation to Drive Growth: Fitch believes the post-pandemic
correction in clinical trial activity has exposed spending
inefficiencies and resulted in leaner pipelines for
biopharmaceutical companies. Sponsors will likely continue to
prioritize programs with strong scientific rationale and
increasingly adopt strategies that combine in-house expertise with
selective outsourcing. While these trends pose near-term risks,
they also create opportunities for CROs to pivot toward more
technology-enabled and geographically diversified services.
Organic Investments and M&A: Fitch expects Syneos to focus on
improving customer experience through delivery capability and
operational consistency, strengthening core therapeutic areas,
expanding clinical services into complementary markets, and
transitioning commercial solutions into higher-growth,
higher-margin businesses. Fitch believes the company will remain
opportunistic when M&A opportunities emerge.
Equalization of IDRs: Star Intermediate Holdings, Inc. (parent
financial filer) and Star Parent, Inc. (subsidiary) have the same
IDR because parent financial filer has no material assets or
liabilities other than subsidiary, and there are no material
impediments to parent financial filer accessing the assets of
subsidiary.
Peer Analysis
The 'B+' IDR reflects Syneos' position as one of the leading CROs
in global markets, its significant portion of contracted and
recurring revenue, and its diversified customer base and service
offerings. The rating is constrained by high leverage following the
leveraged buyout transaction in 2023, execution risks regarding
Syneos' business turnaround strategies and margin expansion, and
Fitch's expectation of volatility in the biopharmaceutical
industry.
Most of Syneos' public peers, including IQVIA Holdings, Inc. and
ICON plc, operate with larger scale, higher profit margins,
stronger FCF generation and lower leverage. Charles River
Laboratories International, Inc. (BBB-/Stable) has a leading
position in the preclinical CRO market and operates with a
conservative financial policy. Fitch expects Fortrea Holdings, Inc.
(B/Negative) to operate with higher leverage, lower profit margins
and weaker FCF generation in the near term.
Key Assumptions
- Modest impact on biopharmaceutical R&D spending from tariffs and
drug pricing policies;
- Revenue of $5.1 billion in 2025, with flat to modest organic
growth rates in 2026 and low- to mid-single digits thereafter;
- Fitch-defined EBITDA margins of 10%-11% in 2025 and 11%-13%
thereafter;
- Effective interest rates of 8%-9%, moving with SOFR;
- Annual capex of $80 million to $90 million;
- Negative Fitch-defined FCF of $90 million in 2025 that will turn
positive to approximately $200 million annually in 2026 and 2027;
- Acquisitions of $100 million to $200 million annually after
2025;
- No allocation of discretionary FCF to voluntary debt prepayment
or dividend.
Recovery Analysis
The 'BB-'/'RR3' senior secured instrument ratings reflect Fitch's
assumption that Syneos would be reorganized in bankruptcy as a
going concern (GC), rather than being liquidated, to maximize the
value distributable to claims.
Fitch estimates an enterprise value (EV) on a GC basis of $2.6
billion after deducting 10% for administrative claims assumed to
accrue from restructuring. The EV reflects an estimated GC EBITDA
of approximately $415 million, reflecting Fitch's view that GC
EBITDA at this level is likely to trigger a default or
restructuring amid significant refinancing risk from negative cash
flow generation and high leverage. Fitch does not assume any upside
in GC EBITDA from corrective measures in a restructuring.
The GC EBITDA is based on the following scenarios: unfavorable
macroeconomic environment and government policies materially reduce
R&D spending and delay customer spending decisions; employee
turnover impacts cancellation rates; and cost-saving initiatives do
not materialize, resulting in EBITDA margin contraction.
The EV also reflects Fitch's use of a 7.0x EV to EBITDA multiple.
This reflects the following: high barriers to become a large-scale
CRO that can serve customer demand and support clinical trials on a
global scale; generally stable biopharmaceutical R&D spending
through economic cycles; and Syneos' competitive position among top
global CROs and high level of contracted and recurring revenue. The
7.0x multiple is higher than the median 6.3x multiple observed in
Fitch's case studies of previous bankruptcies in the healthcare
sector. The GC EBITDA and EV to EBITDA multiples are unchanged from
the previous committee.
In estimating claims, Fitch assumes that Syneos would draw the full
amount available under the $500 million revolving credit facility
(RCF) and includes that amount of debt in the claims waterfall. The
waterfall analysis further reflects senior secured claims
consisting of approximately $3.7 billion, all of which are
collateralized by the capital stock of Star Parent, Inc. and
substantially all of the assets of Star Parent, Inc. and Syneos
Health, Inc.'s wholly-owned U.S. restricted subsidiaries.
Because Syneos does not expect its non-guarantor subsidiaries
(Syneos Health, Inc.'s foreign subsidiaries) to incur any debt,
Fitch assumes the value generated by non-guarantor subsidiaries
will be fully available to creditors, resulting in the senior
secured debt instruments recovering within the 'RR3' range, which
generates a one-notch uplift from Syneos' 'B+' IDR.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Diminished growth prospects, profit margin contraction and
capital deployment strategy leading to Fitch's expectation that
EBITDA leverage will be maintained above 6.0x;
- Fitch's expectation that cash flow from operations minus capex
(CFO-capex) to debt ratio will be sustained below 2.5% and EBITDA
interest coverage sustained below 2.5x.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Improved growth prospects, profit margin expansion and capital
deployment strategy leading to Fitch's expectation that EBITDA
leverage will be maintained below 5.0x;
- Fitch's expectation that (CFO-capex) to debt ratio will be
sustained above 5.0%.
Liquidity and Debt Structure
Liquidity is supported by $433 million of cash on hand and $487
million available under the RCF as of June 30, 2025. Fitch projects
Fitch-defined CFO of negative $10 million in 2025 due to billing
delays but will turn positive to more than $250 million annually
thereafter, which should be sufficient to cover capex and other
cash requirements. Fitch assumes Syneos will prioritize organic
investments and bolt-on acquisitions and will not complete any
dividend recapitalization over the forecast period.
Syneos has annual term loan amortization of $27 million and
approximately $3.5 billion of senior secured debt maturing in 2030,
with the undrawn RCF due in 2028. Fitch assumes effective interest
rates of 8%-9% and expects balance sheet deleveraging will be
primarily driven by EBITDA growth over the rating horizon.
Syneos is required to maintain a first lien leverage ratio of no
more than 7.25x only when more than 40% of the RCF is drawn. Over
the forecast period, Fitch expects the company to maintain
sufficient headroom to meet short-term liquidity needs.
Issuer Profile
Star Intermediate Holdings, Inc. and its subsidiaries (d/b/a Syneos
Health) provide development and commercialization solutions to
companies in the biopharmaceutical and medical device industries.
Summary of Financial Adjustments
Fitch excludes non-cash and non-recurring expenses from EBITDA.
These expenses include stock-based compensation, merger- and
integration-related costs and restructuring and other related
costs.
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
----------- ------ -------- -----
Star Intermediate
Holdings, Inc. LT IDR B+ Affirmed B+
Star Parent, Inc. LT IDR B+ Affirmed B+
senior secured LT BB- Affirmed RR3 BB-
STERNE WOOD: Claims to be Paid from Property Sale Proceeds
----------------------------------------------------------
Sterne Wood, LLC, filed with the U.S. Bankruptcy Court for the
Southern District of California a Disclosure Statement describing
Plan of Liquidation.
The Debtor is a real estate development company that owns three
contiguous parcels in the Hillcrest neighborhood, including (1) a
5-unit apartment building located at 3967-3969 8th Avenue, San
Diego, CA, (2) a duplex located at 3973 8th Avenue, San Diego, CA,
and (3) a duplex located at 3975-3977 8th Avenue, San Diego CA
(collectively, the "Properties").
The Debtor purchased the Properties in February 2021 for the
purpose of redeveloping them into mixed-use high-density housing.1
To finance the purchase, Debtor obtained a hard money loan from GNT
Financial. In or about January 2024, Debtor refinanced this loan
with three smaller loans owed to hard money lender (collectively,
"Secured Creditors"). Collectively, Debtor believes that the
Properties are encumbered with liens totaling approximately $3.5
million.
On May 13, 2025, the Debtor filed this chapter 11 bankruptcy case
before a foreclosure sale scheduled by EF Mortgage against
3975-3977 8th Avenue. Prior to the Petition Date, Innovative
Capital REIT, LLC ("InnCap") had recorded notices of default
against 3967-3969 and 3973 8th Avenue. Debtor filed this chapter 11
case to preserve the value of the Properties with an orderly sale.
The Debtor is actively marketing the Properties for sale to two
separate markets. First, Debtor is marketing the Properties (and a
neighbor's adjacent lot) as a real estate development project to
other developers. Second, Debtor is marketing the Properties
individually to residential and commercial buyers. Debtor is
currently marketing 3967-3969 8th Avenue for $1,665,000, 3973 8th
Avenue for $1,400,000, and 3975-3977 8th Avenue for $1,450,000.
This is a liquidation plan. In other words, Debtor seeks to
liquidate its assets, pay all creditors in full, and dissolve its
organization.
Class 8 consists of the General Unsecured Claim of Franchise Tax
Board. Paid within one week of the closing of escrow of the sale of
the Real Properties, following payment of Administrative Expenses
and Priority Tax Claims in full. The allowed unsecured claims total
$9,944.93. This Class is impaired.
Pursuant to section 363(b) of the Bankruptcy Code, and utilizing
commercially reasonable means, the Debtor shall cause the Real
Properties to be marketed for sale for a commercially reasonable
purchase price. The closing of the sale of the Real Property will
occur on or before the six-month anniversary of the Effective
Date.
Payments that are required to be made to Creditors under the Plan
shall be made from the amounts in the Estate on the Effective Date,
or amounts collected thereafter, including the amounts received
from the sale of the Real Property and Personal Property.
Additionally, Debtor’s managing member, Danny Ormsby, will
advance Debtor the funds necessary to satisfy its payment
obligations on the Effective Date and until the sale of the Real
Properties.
A full-text copy of the Disclosure Statement dated October 9, 2025
is available at https://urlcurt.com/u?l=3IkL6R from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Donald W. Reid, Esq.
Toby Shanner, Esq.
Law Office Of Donald W. Reid
PO Box 2227
Fallbrook, CA 92088
Tel: (951) 777-2460
Email: don@donreidlaw.com
toby@shannerlaw.com
About Sterne Wood, LLC
Sterne Wood LLC is a limited liability company in San Diego,
Calif.
Sterne Wood sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Calif. Case No. 25-01945) on May 13, 2025. In its
petition, the Debtor reported up to $50,000 in assets and between
$1 million and $10 million in liabilities.
Judge J. Barrett Marum oversees the case.
The Debtor is represented by Donald Reid, Esq., at the Law Office
of Donald W. Reid.
STRANGE BIKINIS: Edward Burr Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 17 appointed Edward Burr of Mac
Restructuring Advisors, LLC as Subchapter V trustee for Strange
Bikinis, LLC.
Mr. Burr will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Burr declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Edward Burr
Mac Restructuring Advisors, LLC
10191 E. Shangri La Road
Scottsdale, AZ 85260
Phone: (602) 418-2906
Email: Ted@macrestructuring.com
About Strange Bikinis LLC
Strange Bikinis, LLC filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. D. Nevada Case No. 25-50960) on
October 13, 2025, with $50,001 to $100,000 in assets and $100,001
to $500,000 in liabilities.
Judge Hilary L. Barnes presides over the case.
Kevin A. Darby, Esq., at Darby Law Practice, Ltd. represents the
Debtor as bankruptcy counsel.
STREETS OF NEW YORK: Seeks Subchapter V Bankruptcy in Arizona
-------------------------------------------------------------
On October 16, 2025, Streets of New York Inc. voluntarily filed a
Chapter 11 bankruptcy petition in the District of Arizona. Court
documents indicate that the company's liabilities both fall between
$100,001 and $1 million. The filing shows that Streets of New York
Inc. has 1 to 49 creditors.
About Streets of New York Inc.
Streets of New York Inc. a family-run business, operates a chain of
pizzerias and Italian restaurants headquartered in Phoenix,
Arizona.
Streets of New York Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No.
25-09832) on October 16, 2025. In its petition, the Debtor reports
estimated assets and liabilities between $100,001 and $1 million
each.
Honorable Bankruptcy Judge Eddward P. Ballinger Jr. handles the
case.
The Debtor is represented by John Powers, Esq.
STYX LOGISTICS: Hires Darby Law Practice as Bankruptcy Counsel
--------------------------------------------------------------
STYX Logistics LLC seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to hire Darby Law Practice, Ltd. as
counsel.
The firm will provide these services:
(a) advise the Debtor of its rights, powers and duties in the
continued operation of business and management of its properties;
(b) take all necessary action to protect and preserve the
Debtor's estate;
(c) prepare on behalf of the Debtor all necessary legal papers
in connection with the administration of its estate;
(d) attend meetings and negotiations with the Subchapter 5
trustee, representatives of creditors, equity holders or
prospective investors or acquirers and other parties in interest;
(e) appear before the court, any appellate courts, and the
Office of the United States Trustee to protect the interests of the
Debtor;
(f) pursue approval of confirmation of a plan of
reorganization and approval of the corresponding solicitation
procedures and disclosure statement; and
(g) perform all other necessary legal services in connection
with the Chapter 11 case.
Kevin Darby, Esq., the primary attorney in this representation,
will be paid at his hourly rate of $550.
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $10,000 plus a filing fee of $1,738
from the Debtor.
Mr. Darby 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:
Kevin A. Darby, Esq.
Darby Law Practice, Ltd.
499 W. Plumb Lane, Suite 202
Reno, NV 89509
Telephone: (775) 322-1237
Facsimile: (775) 996-7290
Email: kevin@darbylawpractice.com
About STYX Logistics LLC
STYX Logistics, LLC provides delivery services as an independent
Delivery Service Partner for Amazon, supporting the fulfillment of
Amazon Prime deliveries.
STYX Logistics LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No.
25-50941) on October 9, 2025, listing $50,000 to $100,000 in assets
and $1 million to $10 million in liabilities. The petition was
signed by Nikola Tersiev as manager.
Judge Hilary L Barnes presides over the case.
Kevin A. Darby, Esq. at DARBY LAW PRACTICE represents the Debtor as
counsel.
STYX LOGISTICS: Nathan Smith Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 17 appointed Nathan Smith, Esq., as
Subchapter V trustee for STYX Logistics, LLC.
Mr. Smith, a partner at Malcolm & Cisneros, will be paid an hourly
fee of $550 for his services as Subchapter V trustee and will be
reimbursed for work-related expenses incurred.
Mr. Smith declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Nathan F. Smith, Esq.
Malcolm & Cisneros
2112 Business Center Drive
Irvine, CA 92612
Phone: (949) 252-9400
Email: nathan@mclaw.org
About STYX Logistics LLC
STYX Logistics, LLC provides delivery services as an independent
Delivery Service Partner for Amazon, supporting the fulfillment of
Amazon Prime deliveries. Established in October 2020, the company
operates more than 30 routes in the Reno's Tahoe region with a
workforce exceeding 70 employees. Its operations emphasize
teamwork, reliability, and safety in ensuring timely package
deliveries.
STYX Logistics filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. Nev. Case No. 25-50941) on October
9, 2025, with $50,000 to $100,000 in assets and $1 million to $10
million in liabilities. Nikola Tersiev, manager, signed the
petition.
Judge Hilary L. Barnes presides over the case.
Kevin A. Darby, Esq., at Darby Law Practice represents the Debtor
as bankruptcy counsel.
SYNERGY FITNESS: Landlord Seeks Chapter 11 Trustee Appointment
--------------------------------------------------------------
LG Other Associates, LLC, a landlord and creditor of Synergy
Fitness Merrick, Inc., asked the U.S. Bankruptcy Court for the
Eastern District of New York to appoint a trustee to take over the
company's Chapter 11 case.
In a court filing, LG raised the need to appoint an independent
trustee to manage the case, saying cause for either a Chapter 11
trustee or conversion or dismissal of the case clearly exists.
However, the landlord believes that conversion rather than
dismissal would be more appropriate in the event the court does not
appoint a Chapter 11 trustee.
LG said that Synergy's operation of an uninsured fitness center
that is open to the public exposes both the public and the estate
to possible catastrophic losses and substantial risk. Should a
member of the public enter Synergy's uninsured fitness center and
suffer an injury or should the company's uninsured fitness center
be damaged through vandalism or other event, those costs and losses
would have to be borne by the estate.
LG alleged the company has engaged in bad faith in filing two
successive skeletal pro se petitions with omission of its creditors
other than the landlord. Synergy's prior case was dismissed because
it failed to come forward with proof of insurance, which in cases
like this is required to maintain for the safety and security of
its gym members. Yet, Synergy followed its same path as the first
case to further frustrate the landlord.
The landlord said it is apparent that Synergy's management is
either incompetent or grossly mismanaging the company. Clear cut
evidence exists with allowing Synergy to continue operations
without any proof of insurance.
Moreover, public records reflect that Synergy has at least four
creditors, three of which the company failed to disclose in its
October petition. As such, Synergy hiding this filing from its
creditors and not advising the court that it has other creditors is
an act of dishonesty. Such dishonesty is another source from which
the court can find cause sufficient to appoint a Chapter 11
trustee, according to the landlord.
LG is represented by:
Richard J. McCord, Esq.
Anthony W. Cummings, Esq.
Robert D. Nosek, Esq.
Certilman Balin Adler & Hyman, LLP
90 Merrick Avenue
East Meadow, NY 11554
Phone: (516) 296-7000
Fax: (516) 296-7111
rmccord@certilmanbalin.com
acummings@certilmanbalin.com
rnosek@certilmanbalin.com
About Synergy Fitness Merrick Inc.
Synergy Fitness Merrick, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-73790) on
October 1, 2025, listing between $100,001 and $500,000 in assets
and between $1 million and $10 million in liabilities.
Judge Louis A. Scarcella presides over the case.
TEGNA INC: M&A Investigates Proposed Sale to Nexstar Media
----------------------------------------------------------
Class Action Attorney Juan Monteverde with Monteverde & Associates
PC (the "M&A Class Action Firm"), headquartered at the Empire State
Building in New York City, is investigating
-- TEGNA Inc. (NYSE: TGNA) related to its sale to Nexstar Media
Group, Inc. Under the terms of the proposed transaction, TEGNA
shareholders will receive $22.00 per share in cash.
ACT NOW. The Shareholder Vote is scheduled for November 18, 2025.
Visit link for more information
https://monteverdelaw.com/case/tegna-inc-2/. It is free and there
is no cost or obligation to you.
-- PB Bankshares Inc. (NASDAQ: PBBK) related to its sale to
Norwood Financial Corp. Under the terms of the proposed
transaction, PB Bankshares' shareholders will have the option to
elect to receive either 0.7850 shares of Norwood common stock or
$19.75 in cash for each common share of PB Bankshares they own. The
election is subject to proration to ensure that, in the aggregate,
80% of the transaction consideration will be paid in the form of
Norwood common stock.
Visit link for more information
https://monteverdelaw.com/case/pb-bankshares-inc/. It is free and
there is no cost or obligation to you.
-- First Savings Financial Group, Inc. (NASDAQ: FSFG) related to
its sale to First Merchants Corporation. Under the terms of the
proposed transaction, each outstanding share of First Savings
common stock will be converted into 0.85 shares of First Merchants
common stock.
Visit link for more information
https://monteverdelaw.com/case/first-savings-financial-group-inc/.
It is free and there is no cost or obligation to you.
-- Semler Scientific, Inc. (NASDAQ: SMLR) related to its sale to
Strive, Inc. Upon completion of the proposed transaction, Semler
shareholders will receive 21.05 Class A common shares of Strive per
share of Semler.
Visit link for more info
https://monteverdelaw.com/case/semler-scientific-inc/. It is free
and there is no cost or obligation to you.
NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you
should talk to a lawyer and ask:
1. Do you file class actions and go to Court?
2. When was the last time you recovered money for
shareholders?
3. What cases did you recover money in and how much?
About Monteverde & Associates PC
Our firm litigates and has recovered money for shareholders . . .
and we do it from our offices in the Empire State Building. We are
a national class action securities firm with a successful track
record in trial and appellate courts, including the U.S. Supreme
Court.
No company, director or officer is above the law. If you own common
stock in the above listed company and have concerns or wish to
obtain additional information free of charge, please visit our
website or contact Juan Monteverde, Esq. either via e-mail at
jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.
Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
New York, NY 10118
Tel: (212) 971-1341
jmonteverde@monteverdelaw.com [GN]
TODD CREEK: Hires Michael Best & Friedrich as Bankruptcy Counsel
----------------------------------------------------------------
Todd Creek Farms Home Owners Association Inc. filed a supplementary
petition seeking approval from the U.S. Bankruptcy Court for the
District of Colorado to hire Michael Best & Friedrich LLP,
successor to Allen Vellone Wolf Helfrich & Factor P.C., as
counsel.
On July 15, 2025, Debtor filed its Ex Parte Application to Employ
Allen Vellone (AVWHF) as its general bankruptcy counsel. The Court
granted the employment application on August 8, 2025.
Effective October 1, 2025, AVWHF combined with and became part of
Michael Best & Friedrich LLP (MBF). The lead attorney originally
approved to represent the Debtor, Jeffrey Weinman, is now
affiliated with MBF.
The Debtor desires to continue representation with the same
attorneys, now practicing under Michael Best & Friedrich LLP, and
requests that the Court enter an order granting the continued
employment of MBF as counsel for Debtor nunc pro tunc to Oct. 1,
2025.
The firm will provide legal advice concerning the general
administration of the Estate, confirmation of any proposed plan of
reorganization and disclosure statement approval, contested and
adversary matters that arise in this case, investigation and
litigation of any avoidance or other action the Estate may have,
and other legal services for the Debtor related to or arising out
of contested matters in this bankruptcy case.
The firm will be paid at these hourly rates:
Jeffrey A. Weinman $650
Matthew M. Wolf $500
Partners $475 to $725
Associates $350 to $450
Paralegal $195 to $250
The firm has received a $20,636 retainer pre-petition from the
Debtor.
Jeffrey A. Weinman, Esq., a partner at Michael Best & Friedrich
LLP, disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Jeffrey A. Weinman, Esq.
Matthew M. Wolf, Esq.
MICHAEL BEST & FRIEDRICH LLP
675 15th Street, Suite 2000
Denver, CO 80202
Tel: (720) 240-9515
Email: jeffrey.weinman@michaelbest.com
Email: matt.wolf@michaelbest.com
About Todd Creek Farms Home Owners Association Inc.
Todd Creek Farms Home Owners Association Inc. is a residential
community management organization that oversees common areas,
enforces covenants, and provides services to homeowners in the Todd
Creek Farms development.
Todd Creek Farms Home Owners Association Inc. sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No.
25-14385) on July 1, 2025. In its petition, the Debtor reports
estimated assets between $500,000 and $1 million and estimated
liabilities between $100,000 and $500,000.
Honorable Bankruptcy Judge Kimberley H. Tyson handles the case.
The Debtors are represented by Jeffrey Weinman, Esq. at Allen
Vellone Wolf Helfrich & Factor P.C.
TRICOLOR AUTO: Lender Says Company Exaggerated Car Inventory
------------------------------------------------------------
Isabella Farr of Bloomberg Law reports that a lender to bankrupt
auto lender Tricolor Holdings claims the company "overstated" its
vehicle inventory, finding only about half of the 10,000 cars
previously reported. TBK Bank said an on-site review identified
just 5,405 vehicles across 60 Tricolor locations, according to the
report.
The lender said while some cars may have been moved or sold, the
gap raises doubts about the accuracy of Tricolor's financial
disclosures. TBK urged the bankruptcy court to investigate the
missing inventory before approving any asset sales.
About Tricolor Auto Acceptance
Tricolor Auto Acceptance is an Irving, Texas-based subprime auto
lender.
Tricolor Auto Acceptance, together with its parent Tricolor Auto
Group and other affilites sought relief under Chapter 7 of the U.S.
Bankruptcy Code(Bankr. N.D. Tex. Case No. 25-33497) on September
10, 2025. In its petition, the Debtor reports estimated assets and
liabilities between $1 billion and $10 billion each.
The Debtor is represented by Thomas Robert Califano, Esq., at
Sidley Austin LLP.
TURKEY LEG: Bankruptcy to Close with $6.5MM Unpaid Claims
---------------------------------------------------------
Shakari Briggs of Houston Chronicles reports that nearly two years
after it began, the Turkey Leg Hut's bankruptcy case is effectively
over.
The trustee managing the Chapter 7 proceeding filed a motion to
withdraw and discharge more than $6.5 million in unpaid claims,
according to the report. The same day, owner Nakia Holmes appeared
in criminal court, accused of hindering the apprehension of a
suspect in an aggravated kidnapping.
Holmes filed for Chapter 11 bankruptcy in March 2024, listing close
to $5 million in debts. Her largest obligations were nearly $2
million to the Texas Comptroller and more than $900,000 to former
partner Steven Rogers. At the time, Holmes framed the move as a
"strategic restructuring" that would keep the business open while
addressing creditor concerns.
That plan fell apart when the case was converted to Chapter 7 after
Holmes violated court orders by failing to submit post-petition tax
filings. Founded in 2015 by Holmes and ex-husband Lyndell Price,
the restaurant grew from a food stand into a major Houston dining
destination before its finances deteriorated, according to report.
Publicly, Holmes maintained an optimistic tone, insisting the
restaurant was "repositioning" to serve the community. She claimed
that Price's mishandling of money contributed to the company's
downfall, a charge he later denied. The bankruptcy, however, left
the business stripped of assets and reputation, the report states.
Trustee Ronald J. Sommers' final report confirmed there were no
funds to distribute, aside from $442 in recovered assets. He stated
that all accounts were closed and the estate's balance was zero.
Unless challenged within 14 days, the case will be closed —
ending the Turkey Leg Hut's turbulent financial chapter, the report
relays.
About Turkey Leg Hut
The Turkey Leg Hut & Company, LLC is a Houston-based restaurant
specializing in turkey legs.
Turkey Leg Hut sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-31275) on March 26,
2024. In the petition filed by Nakia Price, managing member, the
Debtor estimated assets up to $50,000 and estimated liabilities
between $1 million and $10 million.
Judge Eduardo V. Rodriguez oversees the case.
Susan Tran Adams, Esq., at Tran Singh, LLP serves as the Debtor's
counsel.
UNIVERSAL DESIGN: Unsecureds Will Get 100% over 120 Months
----------------------------------------------------------
Universal Design Solutions, LLC, filed with the U.S. Bankruptcy
Court for the Middle District of Florida a Disclosure Statement
describing Plan of Reorganization dated October 13, 2025.
The Debtor is a Florida Corporation engaged in building and
designing modifications and accessible spaces, as well as,
providing high-quality medical equipment tailored to the unique
needs of its clients. The Debtor operates out of its primary office
located at 5860 Old Timquana Unit #6, Jacksonville, FL.
The Debtor has fallen behind on certain trade debt and payments to
merchant cash advance lenders. This Chapter 11 bankruptcy case has
primarily been filed to restructure its secured loan and resolve
its unsecured debt including merchant cash advances by providing
payment to general unsecured creditors on a pro rata basis on the
effective date of the plan.
This Plan of Reorganization proposes to value and re-amortize
certain parcels of real property and provide for payment on account
of unsecured claims.
This Plan provides for one class of priority claims; one class of
secured claims; and one class of general unsecured claims. Class
three unsecured creditors holding allowed claims will receive
distribution under this Plan on a pro rata basis via monthly
payments for 60 months beginning on the Effective Date of this
Plan. This Plan also provides for the payment of administrative and
priority claims either upon the effective date of the Plan, as
agreed or as allowed under the Bankruptcy Code.
Class 3 consists of General Unsecured Creditors. The holders of
allowed Class 3 will receive payment in full (100%) over 120 months
at 0% interest starting from the second month following the
Effective Date of this Plan. Class 3 is impaired by this Plan.
Except as otherwise provided in the Plan or in the order confirming
the Plan, (i) The Debtor will retain all property of the estate and
confirmation of the Plan vests all property of the estate in the
Debtor, and (ii) after confirmation of the Plan, the property dealt
with by the Plan shall be free and clear of any and all liens,
claims, and interests of any creditors.
A full-text copy of the Disclosure Statement dated October 13, 2025
is available at https://urlcurt.com/u?l=TxF1wQ from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Thomas C. Adam, Esq.
ADAM LAW GROUP, P.A.
2258 Riverside Ave.
Jacksonville, FL 32204
(904) 329-7249 Phone
(904) 606-1245 Facsimile
Email: tadam@adamlawgroup.com
About Universal Design Solutions
Universal Design Solutions, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01970)
with $100,001 to $500,000 in assets and $500,001 to $1 million in
liabilities.
Judge Hon. Jason A Burgess oversees the case.
Thomas C. Adam, Esq., at Adam Law Group, P.A. is the Debtor's
bankruptcy counsel.
TD Bank, N.A., as lender, is represented by:
Amanda Klopp, Esq.
Akerman LLP
777 South Flagler Drive
Suite 1100, West Tower
West Palm Beach, FL 33401
Telephone (561) 653-5000
Facsimile (561) 659-6313
amanda.klopp@akerman.com
UNIVERSITY AUTO: Case Summary & Three Unsecured Creditors
---------------------------------------------------------
Debtor: University Auto Spa & Detailing Center Inc
Luxury Car Wash Inc.
2100 University Ave
Riverside CA 92507
Business Description: University Auto Spa & Detailing Center Inc
provides car wash and auto detailing
services at its facility in Riverside,
California. The Company offers hand
washing, waxing, and interior cleaning for
vehicles, catering to individual customers
seeking full-service auto care. It also
operates a customer lounge and snack shop
that serves light food and beverages,
allowing visitors to relax and dine while
their vehicles are being serviced.
Chapter 11 Petition Date: October 16, 2025
Court: United States Bankruptcy Court
Central District of California
Case No.: 25-17440
Judge: Hon. Scott H Yun
Debtor's Counsel: Joseph Nowicki, Esq.
5150 E Pacific Coast Hwy #200
Long Beach CA 90804
Tel: 562-433-5400
Email: josfnow@gmail.com
Total Assets: $3,700,000
Total Debts: $715,955
The petition was signed by Mohammed Attia as the authorized
representative of the Debtor.
A full-text copy of the petition, which includes a list of the
Debtor's three unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/HY4CGUY/University_Auto_Spa__Detailing__cacbke-25-17440__0001.0.pdf?mcid=tGE4TAMA
US MAGNESIUM: Gets Extension to Pursue Sale, EPA Talks
------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that on
Thursday, October 16, 2025, the Delaware bankruptcy court has
agreed to extend Chapter 11 financing for US Magnesium LLC by four
weeks, granting interim relief to the company as it struggles to
maintain operations.
The ruling delays a key hearing on whether the case should be
converted to Chapter 7, as stakeholders debate the company's future
and financial sustainability, according to the report.
According to the court, the limited funding extension provides a
necessary buffer to assess potential restructuring options and
safeguard remaining assets. The U.S. Trustee and certain creditors
had urged caution, arguing that the company's prolonged financial
distress may ultimately warrant liquidation if no turnaround plan
emerges soon.
US Magnesium, one of the few domestic producers of magnesium,
entered bankruptcy earlier this year, citing mounting liabilities
and operational setbacks. The court is expected to revisit the
conversion issue in November, when the company's progress under the
extended financing period will be reviewed, according to report.
About US Magnesium LLC
US Magnesium LLC is a magnesium producer based in Salt Lake City,
Utah.
US Magnesium LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 25-11696) on September 10,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
Judge Brendan Linehan Shannon oversees the case.
The Debtor tapped Michael Busenkell, Esq., at Gellert Seitz
Busenkell & Brown, LLC as counsel; Carl Marks Advisory Group LLC as
restructuring advisor; and SSG Advisors, LLC as investment banker.
Stretto, Inc. is the Debtor's claims and noticing agent.
US WIND: Warns Permit Revocation Could Trigger Bankruptcy
---------------------------------------------------------
Shayna Greene of Bloomberg Law reports that the Maryland-based
offshore wind developer US Wind Inc. is asking a federal court
to block the U.S. Department of the Interior from revoking
its previously approved permits until a lawsuit it filed can be
resolved, warning that losing the permits could push the company
into bankruptcy.
In its motion for a preliminary injunction filed Wednesday, October
15, 2025, in the U.S. District Court for the District of Maryland,
US Wind argued that the government's plan to remand and vacate the
approvals breaches the company's "vested rights under its federal
lease to construct the project," according to report.
"The loss of its primary federal permit constitutes an existential
risk for US Wind," the motion states.
About US Wind Inc.
US Wind Inc. is a Maryland-based offshore wind developer.
VALVES AND CONTROLS: Comm. Taps Raines Feldman as Delaware Counsel
------------------------------------------------------------------
The Official Committee of Unsecured Creditors of Valves and
Controls US, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to hire Raines Feldman Littrell LLP as
Delaware counsel.
The firm will render these services:
(a) advise the Committee regarding its rights, powers and
duties as a committee elected pursuant to Bankruptcy Code Section
1103;
(b) advise and consult with the Committee on the conduct of
this case, including all legal and administrative requirements
under chapter 11;
(c) attend meetings and negotiate with representatives of the
Debtors, secured and unsecured creditors, lessors, governmental
agencies, equity holders, employees and other parties in interest;
(d) advise the Committee regarding any contemplated sale of
assets or business combinations including the negotiation of asset
sales, stock purchases, mergers or joint ventures, formulation and
implementation of bidding procedures, evaluation of competing
offers, drafting of appropriate documents regarding proposed sales
and counseling regarding the closing of such sales;
(e) advise the Committee regarding prepetition and
post-petition financing and cash collateral arrangements and
negotiate documents relating thereto;
(f) advise the Committee on matters relating to Debtor's
assumption, assumption and assignment and rejection of executory
contracts and unexpired leases;
(g) advise the Committee on matters relating to the ordinary
course of business including employment matters, tax,
environmental, banking, insurance, securities, corporate, business
operation, contracts, joint ventures, real and personal property,
press and public relations matters and regulatory matters;
(h) provide advice and counseling on actions to protect and
preserve the Debtor's estates including actions and proceedings by
the Debtor or other designated parties to recover assets, defense
of actions and proceedings brought against the estate, negotiations
regarding all litigation in which the Committee may be involved and
objections to claims filed against the estates;
(i) prepare and file necessary motions, applications, answers,
orders, reports and papers;
(j) review all pleadings, financial and other reports filed by
the Debtor in this chapter 11 case and advise the Committee about
the implications;
(k) review the nature and validity of any liens asserted
against the Debtor's property and advise the Committee concerning
the enforceability of such liens;
(l) investigate the acts, conduct, assets, liabilities, and
financial condition of the Debtor, the operation of the Debtor's
businesses and the desirability of the continuance of such
businesses, and any other matter relevant to this case or to the
formulation of a plan;
(m) commence and conduct any and all ligation necessary or
appropriate to assert rights held by the Committee and/or protect
assets of the chapter 11 estate;
(n) negotiate and participate in the preparation of the
Debtor's plan(s) of reorganization, related disclosure statement(s)
and other related documents and agreements and advise and
participate in the confirmation of such plan(s);
(o) attend meetings with third parties and participate in
negotiations with respect to the above matters;
(p) appear before this Court, other courts, and the United
States Trustee to protect and represent the interests of the
Committee and the Committee's constituents;
(q) meet and coordinate with other counsel and other
professionals representing the Debtor and other parties in
interest;
(r) perform all other necessary legal services and provide all
necessary legal advice to the Committee in connection with this
chapter 11 case; and
(s) handle such other matters as may be requested by the
Committee and to which Raines agrees.
The firm will be paid at these rates:
Thomas J. Francella, Jr., Partner $880 per hour
Mark W. Eckard, Partner $780 per hour
Stephen M. Mott, Associate $495 per hour
Paralegals $375 to $465 per hour
Attorneys $495 to $1,300 per hour
paraprofessionals $375 to $465 per hour
The following information is provided in response to the request
for additional information set forth in paragraph D.1. of the U.S.
Trustee Guidelines:
Question: Did you agree to any variations from, or otherwise to,
your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the past 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months pre-petition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reason for the difference.
Response: N/A
Question: Has your client approved your prospective budget and
staffing plan, and if so, for what budget period?
Response: The Client understands that the Committee
professionals are subject to the budget attached to the Second
Interim Order (I) Authorizing Debtors to Obtain Postpetition
Financing Pursuant to Section 364 of the Bankruptcy Code; (II)
Authorizing the Use of Cash Collateral Pursuant to Section 363 of
the Bankruptcy Code; (III) Granting Adequate Protection to the
Prepetition Secured Parties Pursuant to Sections 361, 362, 363 and
364 of the Bankruptcy Code; (IV) Granting Liens and Superpriority
Claims; (V) Modifying the Automatic Stay; and (VI) Scheduling a
Final Hearing, which remains subject to negotiation by and between
the Committee, the Debtor and the DIP Lender.
Raines Feldman Littrell, LLP is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code, according to
court filings.
The firm can be reached through:
Thomas J. Francella, Jr.
Raines Feldman Littrell, LLP
824 North Market Street, Suite 805
Wilmington, DE 19801
Tel: (302) 772-5803
Email: tfrancella@raineslaw.com
About Valves and Controls US, Inc.
Valves and Controls US Inc., previously known as Weir Valves &
Controls USA Inc., is a manufacturer of industrial valves and
control systems operating within the fabricated metal product
manufacturing industry.
Valves and Controls US Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11403) on July 1,
2025. In its petition, the Debtor reports estimated assets between
$50 million and $100 million and estimated liabilities between $100
million and $500 million.
Honorable Bankruptcy Judge Thomas M. Horan handles the case.
The Debtor is represented by Patrick J. Reilley, Esq. at Cole
Schotz P.C.
VERIJET INC: Flyte Plans to Buy Aircrafts, Assets
-------------------------------------------------
Zach Vasile of Flying reports that Flyte is seeking to acquire the
remaining assets of Verijet, the charter jet operator that filed
for Chapter 7 bankruptcy earlier in October 2025, as part of an
aggressive expansion effort.
"We're the most logical buyer," said Flyte founder and Creatd CEO
Jeremy Frommer, adding that the company plans to purchase "whatever
is available."
Verijet, which filed for Chapter 7 bankruptcy on October 9, 2025,
operated a fleet of Cirrus Vision Jets and maintained a network of
customers and partners across major destinations like New York,
Miami, Los Angeles, and Las Vegas. Flyte hopes to absorb the
carrier's valuable assets to strengthen its operational footprint
in those markets. Under Chapter 7, Verijet's assets will be
liquidated to repay creditors, marking the end of the company's
operations, according to report.
Flyte operates as both a booking platform and a Part 135 carrier
through its subsidiary, Ponderosa Air. Once a top-15 private jet
operator in the U.S., Verijet's downfall stemmed from legal
disputes and customer complaints over canceled flights and
unfulfilled "jet cards." Operations ceased shortly after the death
of founder Richard Kane, marking an abrupt end to the company's
ambitions in private air travel, the report states.
About Verijet Inc.
Verijet, established in Florida in 2020 by Richard Kane, is a
seasoned entrepreneur in aviation and telecommunications,
specialized in on-demand charter operations featuring the Cirrus
SF50 Vision Jet, a single-engine very light jet known for its
efficiency and safety features.
Verijet Inc. sought relief under Chapter 7 of the U.S. Bankruptcy
Code (Bank. S.D. Fla. Case No. 25-21901) on October 9, 2025. In its
petition, the Debtor reports $2.5 million in asset and liabilities
totaling $38.7 million.
Honorable Bankruptcy Judge Corali Lopez-Castro handles the case.
VERSANT MEDIA: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has assigned Versant Media Group, Inc. a first-time
Long-Term Issuer Default Rating (IDR) of 'BB'. Fitch has also
assigned the company's senior secured debt a 'BB+' rating with a
Recovery Rating of 'RR2'. The Rating Outlook is Stable.
The rating reflects Versant's strong credit metrics, including
solid free cash flow (FCF) generation, and conservative EBITDA
leverage and interest coverage metrics. The rating is constrained
by secular declines in the linear media industry, which are
expected to result in revenue and EBITDA contractions over Fitch's
rating horizon (fiscal 2025 - 2028).
The Stable Outlook incorporates Fitch's expectations that Versant
will maintain credit metrics consistent with the current rating
despite ongoing industry headwinds, supported by the company's
established content portfolio and diversified revenue streams
across linear distribution, advertising, digital platforms and
content licensing.
Key Rating Drivers
Cable Networks with Significant Brand Loyalty: Versant's key
brands, including MSNBC, CNBC, The Golf Channel and USA Network,
are well-positioned in their respective programming verticals.
These cable networks maintain strong viewer loyalty and engagement,
which helps drive premium advertising rates and generates ancillary
revenue opportunities through events, sponsorship, and social
media.
Declining Industry Trends: Secular pressures are reducing
subscribers in traditional linear TV, as consumer preferences shift
and technology changes. Versant relies largely on the pay-TV
ecosystem for revenue, making ongoing cord-cutting and demand for
alternative video content significant risks to its portfolio. These
risks may be mitigated over time if Versant successfully expands
revenue and cash flow contributions from its portfolio of digital
assets. The video industry has rapidly evolved, with
direct-to-consumer (DTC) platforms such as Netflix, Amazon and
Disney+ amassing large subscriber bases, driving losses at
traditional distributors.
Conservatively Capitalized Given Secular Risks: Fitch expects
Versant to be separated from Comcast with a conservative capital
structure, with management acknowledging the secular industry
pressures it faces as a standalone entity. Fitch-calculated
leverage is expected to be below 1.5x throughout the rating
horizon, providing significant cushion to both withstand industry
headwinds and enable management to develop a viable long-term
growth strategy as a standalone credit.
Sufficient Liquidity and Stress Resilience: Fitch expects FCF
margins in the mid- to high teens over the rating horizon,
supported by high but declining EBITDA, manageable cash interest
costs and low capex intensity. Liquidity is further supported by a
$750 million undrawn revolving credit facility. Fitch expects
Versant can weather material declines in both revenue and EBITDA
without impacting overall credit quality, given its modest leverage
and management's commitment to maintaining at least $500 million in
cash on the balance sheet.
Long-Term Contract Visibility: Versant has secured long-term
agreements with major multichannel video programming distributors
(MVPDs), as well as key sports leagues that provide creditors with
clear visibility over the rating horizon. Fitch believes live
programming, particularly sports, is the most dependable source of
reach and engagement in a fragmenting market.
Stable Operating Performance Expected: Fitch does not expect
revenue or EBITDA growth over the rating horizon, given ongoing
secular pressures on the business. While Versant intends to invest
in its digital platforms to capture market share, grow revenues and
moderately diversify from core linear-based revenues, such
investments would not offset declines in the linear business. The
rating is primarily dependent on expectations of low leverage and
solid liquidity from stable and substantial FCF generation.
Conservative Capital Allocation Policy: Fitch assumes Versant will
prioritize investment in its core business and shareholder returns
through share repurchases and/or dividends. Under Fitch's base
case, Fitch projects moderate share repurchases and investment,
alongside dividend payments, over the rating horizon.
Peer Analysis
Versant's closest publicly rated peers include Warner Bros.
Discovery, Inc. (WBD; BB+/Rating Watch Negative), Paramount
Skydance (Paramount; BBB-/Negative), and DIRECTV (BB/Stable). While
Versant is significantly smaller than these peers in terms of
revenue and EBITDA scale, it will benefit from stronger credit
metrics and conservative capital structure following its separation
from Comcast Corporation (A-/Stable).
Versant's 'BB' rating reflects expectations for leverage below
1.5x, which compares favorably to WBD and Paramount's higher
leverage profiles. However, like its peers, Versant faces secular
pressures from cord-cutting and the shift towards DTC platforms.
WBD's Negative Watch reflects uncertainty regarding sustainable
long-term revenue and EBITDA growth following its own corporate
restructuring, similar challenges that Versant will face as a newly
independent entity.
Compared to Paramount, Versant benefits from a more conservative
financial profile but operates with less content creation scale and
lacks Paramount's growing DTC platform (Paramount+). DIRECTV faces
similar secular headwinds as a traditional pay-TV distributor but
operates with lower EBITDA margins, higher leverage and lower
interest coverage.
Versant's competitive positioning reflects its inheritance of
established cable network brands from Comcast, including MSNBC,
CNBC and USA Network, which provide strong advertiser relationships
and viewer loyalty. However, the company lacks the diversification
benefits that supported its former parent's higher rating,
including broadband services, theme parks, and film studios.
Key Assumptions
- Low single digit (LSD) revenue declines over the rating horizon
due to declines in linear distribution and advertising revenues
offsetting growth in platforms and content licensing. Revenue
declines reflect long-term secular headwinds in the linear media
ecosystem. Linear and advertising segments decline in the mid to
high single digits; platforms revenue grow in the high single
digits to low 20s due to optimized monetization and growth
investments; content licensing grows in the low to mid-single
digits.
- EBITDA margins decline by approximately 100bps on an annual basis
due to top line revenue declines.
- Capex intensity maintained below 3%. Elevated capex in FY26 due
to costs associated with a new permanent headquarters and other new
initiatives.
- Moderate share repurchases, investments and dividend payments
over the rating horizon.
- Floating rate debt is modeled on secured overnight financing rate
(SOFR) declining from 4.3% to 3.5% between 2025 and 2028.
Recovery Analysis
The senior secured ratings reflect the application of Fitch's
Corporates Recovery Ratings and Instrument Ratings Criteria for
'BB' category issuers and category 2 first-lien debt. Therefore,
the secured debt is rated one notch above Versant's 'BB' IDR,
supported by expected recoveries in the 'RR2' range.
The 'RR2' Recovery Rating reflects enterprise valuation (EV)
uncertainty for Versant as a newly independent entity in a
secularly declining industry. Following separation from Comcast,
Versant will operate as a standalone public company with no
established market valuation benchmarks and exposure to traditional
linear television networks facing structural headwinds, including
cord-cutting and evolving consumer preferences.
Market reception of Versant's equity post-distribution remains
uncertain. This uncertainty limits confidence in an EV that would
support superior recovery expectations. While the instruments
benefit from structural priority, the combination of valuation
uncertainty and industry pressures constrains recovery to
substantial rather than superior levels, consistent with 'RR2'
versus 'RR1'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- EBITDA Leverage sustained above 1.75x;
- FCF on a sustained basis less than $500 million.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
Fitch does not anticipate an upgrade given secular declines in the
business; however, the following could result in positive rating
action:
- Demonstrated sustained positive revenue and EBITDA growth;
- EBITDA Leverage below 1x on a sustained basis.
Liquidity and Debt Structure
Versant's liquidity comprises proceeds from its proposed senior
secured debt and full availability under its $750 million RCF,
which will be undrawn at close. Liquidity will be supported by
strong FCF generation.
Versant's capital structure will comprise a five-year $750 million
revolver, undrawn at close and approximately $2.75 billion of
secured debt including a $750 million term loan B maturing in
2030.
Issuer Profile
Versant is a media and entertainment business that operates in four
core markets: political news and opinion; business news and
personal finance; golf and athletics participation; and sports and
genre entertainment.
Summary of Financial Adjustments
Fitch has adjusted EBITDA to reflect reported transactions costs,
non-cash stock-based compensation expenses and other non-recurring
charges.
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
----------- ------ --------
Versant Media Group, Inc. LT IDR BB New Rating
senior secured LT BB+ New Rating RR2
VERSANT MEDIA: S&P Assigns 'BB' ICR on Debt Issuance
----------------------------------------------------
S&P Global Ratings assigned its 'BB' issuer credit rating to
Versant Media Group Inc.
S&P said, "We also assigned a 'BB' issue-level rating and '3'
recovery rating to the proposed term loan B facility. The '3'
recovery rating indicates our expectation for meaningful (50%-70%;
rounded estimate: 55%) recovery in the event of default.
"The stable outlook reflects our expectation that Versant will
maintain S&P Global Ratings-adjusted leverage below 2x and free
operating cash flow (FOCF) to debt above 25% even amid
low-single-digit percentage revenue declines due to continued
pressure at its linear cable networks."
Versant, a spin-off of Comcast Corp.'s cable networks, plans to
issue $2.75 billion of new senior secured debt to fund a one-time
$2.25 billion cash distribution to Comcast, add $500 million to the
balance sheet, and effectuate its transition into an independent,
publicly traded company.
S&P's 'BB' rating reflects Versant's diversified cable networks and
sports rights. Secular declines (7%-8% annually) in the linear pay
TV ecosystem offset the strength of its portfolio. Following the
spin-off, Versant will consist of well-known cable networks and
brands including USA Network, CNBC (introducing a new logo without
NBC logo), MSNBC (being rebranded as MS NOW), The Golf Channel, and
digital platforms including Fandango, Rotten Tomatoes, GolfNow, and
SportsEngine. The established brands and audiences position it as a
leader in multiple major markets, including political and business
news and opinion (MS NOW, CNBC), sports (USA Network, The Golf
Channel, GolfNow, SportsEngine), and genre entertainment (E!, SyFy,
Oxygen).
S&P said, "We view the company's high exposure to the secularly
challenged linear television ecosystem as a key risk constraining
the rating. Revenue from linear distribution and advertising on its
linear network's accounts for more than 80% of total revenue. The
company relies heavily on this high-margin cash flow to fund its
capital allocation priorities and investments in nonlinear growth.
Despite ongoing declines in traditional television viewership, the
high-margin revenue from its established linear networks have
historically boosted strong free cash flow (over $1 billion of
annual FOCF projected in 2026 and 2027). We expect Versant will
maintain its target gross leverage ratio, shareholder returns, and
investments in the business to support growth."
Versant has increased financial visibility over the next 2-3 years.
It completed most of its contract renewals with distributors and
secured sports rights through 2028. The entity historically has
benefitted from its portfolio of cable networks as part of a larger
media company that included NBC, one of the major broadcast
networks. This strengthened the bargaining position with video
distributors and aided in securing higher affiliate fee revenue for
its portfolio of cable networks. After the spin-off, it will lose
this benefit, and S&P believes its cable portfolio will be more
exposed to pricing pressure. However, most of its distribution
agreements with multichannel video programming distributors were
completed earlier, with the negotiating power of its former parent,
Comcast's NBCUniversal. The rate of cord-cutting could still create
some volatility.
The company has also been actively securing sports media rights,
including an 11-year deal with the Women's National Basketball
Association (WNBA), in anticipation of the spin-off. Rights secured
for USA Network and The Golf Channel include:
-- Premier League soccer (through 2028)
-- WWE Smackdown (through 2029)
-- Atlantic 10 Conference college basketball (through 2029)
-- U.S. Open Golf (through 2032)
-- Golf events, including PGA Tour tournaments, the British Open,
and Ryder Cup (2028-2031)
-- NASCAR (through 2031)
-- WNBA (starting 2026 through 2036)
S&P said, "We believe Versant's diverse portfolio of sports rights
provides a strong foundation of programming and improves near-term
cost and monetization visibility.
"We expect sustained S&P Global Ratings-adjusted gross leverage
below 2x. Under this conservative financial policy, we estimate
adjusted gross leverage at about 1.2x pro forma for the proposed
debt issuance, based on $2.75 billion of total outstanding debt and
approximately $2.37 billion of S&P Global Ratings-adjusted EBITDA
(rolling 12 months ended June 30, 2025). The company has committed
to a target ratio of 1.5x. We expect it will prioritize debt
repayment, with residual cash flow used to fund cash dividends,
organic and inorganic investments, and opportunistic share
repurchases.
"Post transaction close, we estimate Versant will have
approximately $1.25 billion of total liquidity, comprising $500
million cash and $750 million available under its revolver.
Combined with annual FOCF of more than $1 billion annually in 2026
and 2027, the company has significant financial flexibility to fund
this capital allocation strategy. Therefore, we expect the company
will maintain S&P Global Ratings-adjusted gross leverage
comfortably below 2x for the next several years.
"Key risks to our base-case forecast include faster than expected
declines in its linear business, which could materially weaken FOCF
generation. However, under this scenario, we believe Versant would
forgo shareholder distributions and investments to repay debt and
stay below its 1.5x target.
"The stable outlook reflects our expectation that Versant will
maintain S&P Global Ratings-adjusted leverage below 2x and FOCF to
debt above 25% despite low-single-digit percentage revenue declines
due to continued pressure at its linear cable networks from
declining subscribers and audiences."
S&P could lower its ratings on Versant if S&P Global
Ratings-adjusted leverage increases above 2x or FOCF to debt
declines below 25%. This could happen if:
-- Secular challenges in the linear television ecosystem
accelerate or the company faces pricing pressure as it renews
distribution agreements on a stand-alone basis, resulting in mid-
to high-single-digit percentage revenue declines, material margin
compression, and declining FOCF that does not allow it to repay
debt and maintain leverage below 2x.
-- The company pursues a more aggressive financial policy with
respect to shareholder returns or debt-funded mergers and
acquisitions.
S&P could raise its ratings on Versant if it:
-- Adopts a more conservative financial policy that maintains S&P
Global Ratings-adjusted leverage below 1.5x and FOCF to debt above
40% on a sustained basis; or
-- Demonstrates that it can stabilize revenue and margin despite
secular pressure in the linear television ecosystem and diversifies
its business away from linear television such that S&P has more
favorable view; in this scenario it would likely reassess its
thresholds.
VIAVI SOLUTIONS: S&P Downgrades ICR to 'B+', Outlook Stable
-----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Viavi
Solutions Inc. to 'B+' from 'BB'. The two-notch downgrade reflects
Viavi's meaningfully higher debt balance and weaker credit metrics
post-close.
S&P assigned a 'BB' rating to its new senior secured debt based on
a '1' recovery rating (90%-100%; rounded estimate: 95%).
S&P also lowered its issue-level ratings on Viavi's existing
unsecured debt to 'B' based on an updated '5' recovery rating
(10%-30%; rounded estimate: 10%). The change in issue-level and
recovery ratings on the unsecured debt considers the addition of
new, higher-ranking debt in the capital structure and thus lower
recovery prospects to unsecured lenders in a hypothetical default
scenario.
The outlook is stable, and it reflects S&P's expectation that
leverage will remain elevated at about 6x over the next 12 months.
Viavi completed its acquisition of Spirent Communications PLC's
assets. Viavi announced it closed its acquisition of Spirent's HSE,
network security, and channel emulation testing business lines from
Keysight Technologies Inc. for $425 million. (The company had
previously made a bid to acquire all of Spirent in March 2024 but
was outbid by Keysight.) The newly acquired assets fit primarily
into the lab portion of Viavi's Network and Service Enablement
(NSE) segment and increase its exposure to the fast-growing AI data
center end market.
Viavi closed on its acquisition of Spirent Communications PLC's
high-speed ethernet (HSE), network security, and channel emulation
testing business lines from Keysight Technologies Inc.
S&P said, "The company raised a $600 million term loan B to finance
the acquisition, increasing S&P Global Ratings-adjusted debt to
EBITDA to about 6x compared with our previous downgrade trigger of
4x.
"We expect the assets will add about $180 million in annual revenue
and be immediately margin accretive given their higher-margin
profile relative to Viavi's stand-alone business. Excluding
one-time earnings add-backs/adjustments and tariff-related
pressures, we forecast earnings margin will improve by about 300
basis points (bps) post-integration."
Viavi issued a $600 million term loan B due October 2032, $425
million of which it will use to fund the acquisition. S&P said,
"The residual $175 million portion of the issued debt is slated for
general corporate purposes, although we view this as excess cash
and assume it will use this to pre-fund the outstanding $175
million contingent consideration liability related to its formerly
completed Inertial Labs acquisition (balance sheet carrying value
of $117.4 million as of June 28, 2025). Under this assumption, we
net the earnout liability amount in our adjusted debt
calculation."
The two-notch rating downgrade reflects Viavi's much higher debt
balance following close of the Spirent asset acquisition. S&P said,
"The new issuance nearly doubles the company's debt balance such
that we now project $1.33 billion of S&P Global Ratings adjusted
debt at the end of fiscal 2026; it also raises our S&P Global
Ratings-adjusted debt to EBITDA expectation to 6.1x at the end of
fiscal 2026 (estimated pro forma leverage of 6x). At this level,
Viavi's leverage ratio exceeds our former downside trigger of 4x by
about 2x and leverage at the end of fiscal 2025 by 1.7x."
S&P said, "We expect leverage to remain elevated in the near term,
but project subsequent steady deleveraging. We project pro forma
leverage of about 6x, and we forecast about a turn of
earnings-driven deleveraging by the end of fiscal 2027. This
assumption considers our expectation for the successful integration
of Spirent assets and achievement of related cost synergies;
continued solid demand by data center ecosystem customers for its
lab, production, and field products and slow yet stabilizing demand
from network equipment manufacturers (NEMs) contributing to
mid-single-digit percent base business growth; and successful
management of tariff-related impacts on customer demand and product
costs.
"We believe leverage improvement could be faster than we anticipate
in our base case if the company were to prioritize excess cash flow
toward voluntary debt repayment and integrate the acquisitions as
expected. In our base case, we expect healthy, yet slightly lower
than historical free cash flow (FOCF) generation in the near-term.
This is due to payments on the outstanding Inertial Labs
earnout--to be paid over four years--and increased capital spending
to accommodate recently acquired assets.
"We project S&P Global Ratings adjusted FOCF of $25 million-$35
million in fiscal 2026 and $45 million-$55 million in fiscal 2027.
At the same time, our view of possible voluntary intrayear debt
repayment considers the company's pro forma leverage position
relative to its outstanding leverage targets of less than 4x gross
leverage and well below 3x net leverage long-term, as well as our
expectation that management will likely hold off on incremental
acquisition spending as it focuses on Spirent asset integration.
"The stable outlook on Viavi reflects our expectation that the
company's leverage will remain elevated at about 6x over the next
12 months as the company integrates the acquired Spirent assets,
achieves related synergies, and manages the ongoing uncertain
macroeconomic/tariff environment with potential to further delay
NEM customer recovery and limit near-term margin expansion. At the
same time, our stable outlook reflects our expectation for a
restored cash cushion and healthy FOCF generation throughout the
forecast that supports the company's capital allocation
priorities."
S&P could lower its rating if Viavi sustains S&P Global
Ratings-adjusted leverage of more than 7x accounting for demand
cyclicality. This could occur if Viavi:
-- Faces uncertain macroeconomic conditions that weaken customer
purchasing or increase direct product costs, thus hampering
top-line and earnings growth;
-- Experiences integration-related challenges with the Spirent
asset acquisition; and/or
-- Pursues additional large, debt-financed acquisitions.
S&P could also lower its rating on Viavi if its liquidity position
meaningfully deteriorates such that S&P no longer view its
liquidity position as strong.
S&P could raise its rating on Viavi if it is able to improve S&P
Global Ratings-adjusted leverage to below 5.5x accounting for
demand cyclicality. This could occur if:
-- Base business and core customer segment continues to recover
(e.g., continued investment by communication service providers in
new 5G infrastructure and demand recovery by NEM and original
equipment manufacturer customers for wireless and cable testing
products);
-- Viavi successfully offsets tariff-related cost impacts through
supply chain management/passing on incremental costs to customers
to support margin expansion;
-- Spirent asset and Inertial Labs integration is in line with our
expectations, contributing to some margin expansion; and/or
-- The company deploys excess FOCF toward voluntary debt
repayment.
VISTA PROPPANTS: Court Rules on MAALT Adversary Proceeding
----------------------------------------------------------
Judge Edward L. Morris of the United States Bankruptcy Court for
the Northern District of Texas issued a ruling in the adversary
proceeding captioned as MAALT, LP, Plaintiff, v. SEQUITUR PERMIAN,
LLC, Defendant/Third-Party Plaintiff, v. VISTA PROPPANTS AND
LOGISTICS, LLC, Third-Party Defendant, Adversary No. 20-04064
(Bankr. N.D. Tex.).
In this removed action, MAALT, LP brought suit against Sequitur
Permian, LLC to recover damages under a Terminal Services Agreement
-- an oil transloading services agreement -- that Maalt alleges
Sequitur breached. Sequitur disputes the claim and has asserted
counterclaims against Maalt, as well as third-party claims against
Vista Proppants, Maalt's parent company, for promissory estoppel,
fraudulent inducement, negligent misrepresentation, breach of
contract, and declaratory judgment relief.
Pursuant to the Complaint, Maalt has asserted two claims against
Sequitur:
(1) a breach of contract claim under the TSA; and
(2) a declaratory judgment claim under the Texas Uniform
Declaratory Judgments Act (the "TUDJA") (chapter 37 of the Texas
Civil Practice & Remedies Code).
Pursuant to Sec. 3.2 of the TSA, if, for any Calendar Quarter after
the Terminal Operations Commencement Date, the volume of Product
actually Throughput during such Calendar Quarter (calculated on a
Calendar Quarterly basis) was less than the Minimum Volume
Commitment (such deficiency, if any, the "Shortfall"), Sequitur
agreed to pay to Maalt an amount equal to the volume of the
Shortfall (expressed in Barrells) to the extent not caused or
contributed to by Force Majeure, maintenance outages at the
Terminal, or Maalt's breach of its obligations under the Agreement,
multiplied by the Throughput Fee in effect for such Calendar
Quarter (collectively, defined as the "Shortfall Payment").
Pursuant to Sec. 4.2 of the TSA, the due date for each invoice
issued by Maalt in accordance with the Agreement was 30 days after
Sequitur's receipt of the invoice, and pursuant to Sec. 4.3 of the
TSA, Sequitur agreed that any amount payable by Sequitur under the
Agreement shall, if not paid when due, bear interest at the
contractual Interest Rate from the payment due date until paid.
Maalt seeks damages against Sequitur for breach of contract on
account of Sequitur's failure to make the Shortfall Payments
provided for under the TSA during the Term of the Agreement. Maalt
also seeks the recovery of interest on the unpaid Shortfall
Payments at the Interest Rate provided pursuant to Sec. 4.3 of the
TSA and attorneys' fees and expenses pursuant to Sec. 15.19 of the
TSA. Maalt also predicates its request for attorneys' fees on
chapter 38 of the TCPRC.
Maalt asserts that it is also entitled to recover its attorneys'
fees pursuant to the TUDJA.
Sequitur has asserted the following affirmative defenses to Maalt's
claims:
(i) statute of frauds;
(ii) contractual force majeure;
(iii) excuse/justification;
(iv) failure to mitigate damages;
(v) failure of conditions precedent (occurrence of the Terminal
Operations Commencement Date and availability of Product
transportation services);
(vi) breach of contract/repudiation; and
(vii) mutual mistake.
Maalt's breach of contract claim is brought pursuant to the TSA.
Maalt asserts the TSA is a valid contract, that it timely performed
all of its obligations up until the time that Sequitur repudiated
the TSA with the sending of the Termination Notice, that Sequitur
breached the TSA by failing to pay the 4Q 2018 Shortfall Payment,
that Sequitur thereafter repudiated the Agreement by purporting to
terminate it pursuant to the Termination Notice and thereafter
further breached the Agreement by failing to pay all future
Shortfall Payments during the Term, and that Maalt suffered damages
in the amount of all of the unpaid Shortfall Payments during the
Term (plus interest thereon at the contracted Interest Rate and the
fees and expenses incurred in connection with this litigation).
Sequitur has attacked a number of these assertions pursuant to its
affirmative defenses.
Initially, in asserting the affirmative defenses of statute of
frauds and mutual mistake, Sequitur appears to challenge the
existence of a valid contract.
The Court finds Sequitur has failed to present any evidence
suggesting that the TSA has in any way incorrectly memorialized the
parties' intended agreement. Consequently, Sequitur's defense of
mutual mistake is overruled.
With those defenses out of the way, the Court also finds that Maalt
has successfully established that the TSA memorializes the parties'
exchange of offers and acceptances and their mutual assent and
consent to all of the terms therein, and that their execution and
delivery of the TSA to one another was undertaken with the intent
for the TSA to be mutual and binding. Accordingly, Maalt has
successfully established that TSA is a valid contract.
The Court finds that Maalt performed of all its contractual
obligations under the TSA through the time that it was excused from
further performance because of Sequitur's repudiation/material
breach of the Agreement in sending the Termination Notice.
The Court finds that Maalt successfully established that all of the
conditions precedent to the Terminal Operations Commencement Date
and to Sequitur's obligation to make the Shortfall Payments were
satisfied.
The Court finds that Maalt successfully established that Sequitur
breached the TSA by failing to make each the Shortfall Payments
that came due under the TSA from 4Q2018 through 4Q2019.
The Court finds that Maalt successfully established the damages
that it incurred as a result of Sequitur's breaches of the TSA, and
in doing so, also successfully proved up its breach of contract
claim against Sequitur and entitlement to the recovery of such
damages from Sequitur.
Counterclaims
Separately, Sequitur has asserted the following
Counterclaims/Third-Party Claims against Maalt and Vista:
(1) a breach of contract claim (against Maalt);
(2) a promissory estoppel claim (against both);
(3) a negligent misrepresentation claim (against both);
(4) a fraudulent inducement claim (against both); and
(5) a declaratory judgment claim (against Maalt).
In relation to the promissory estoppel, negligent
misrepresentation, fraudulent inducement, and breach of contract
claims, Sequitur asserts Maalt and Vista promised/represented to
Sequitur that Sequitur would be able to secure a sufficient number
of trains and railcars, that Sequitur would be able to secure rail
rates, and that Sequitur would be able to secure capable third
party transportation service providers. Sequitur asserts that such
promises were not fulfilled and the representations were false,
that it relied on the alleged promises/representations to its
detriment, which was foreseeable by Maalt and Vista, and that
injustice can be avoided only by awarding damages in excess of $4
million.
Sequitur requests the recovery of attorneys' fees pursuant to the
terms of the TSA and chapters 37 and 38 of the TCPRC.
Both Maalt and Vista have asserted the following affirmative
defenses to Sequitur's claims:
(i) a promissory estoppel bar due to the existence of a
contract;
(ii) failure to mitigate damages;
(iii) comparative fault pursuant to chapter 33 of the TCPRC;
(iv) contributory negligence; and
(v) lack of justifiable reliance/disclaimer.
Additionally, in relation to the breach of contract claim, Maalt
has asserted the affirmative defenses of statute of frauds, excused
performance on account of a prior breach, and the failure of a
condition precedent (in the last case, referring to Sec. 8.3 of the
TSA).
The Court finds Sequitur has failed to carry its burden of
establishing a breach of the TSA by Maalt. The Court finds that
Sequitur has failed to carry its burden of establishing a
promissory estoppel claim against either Maalt or Vista. According
to the Court, Sequitur has failed to present sufficient credible
evidence to support a claim of fraudulent inducement or negligent
misrepresentation against either Maalt or Vista.
With respect to the attorneys' fees and expenses awardable to
Maalt, by agreement of the parties the amount of such fees and
expenses will be determined by motion practice in accordance with
the provisions of Rule 7054(b)(2) of the Federal Rules of
Bankruptcy Procedure and Rule 54(d)(2) of the Federal Rules of
Civil Procedure. Accordingly, the Court will separately issue an
order establishing applicable deadlines for such process.
Once the amount of reasonable attorneys' fees and expenses
awardable to Maalt has been determined, the Court will separately
enter a final judgment providing for the following relief:
(a) that, in relation to Maalt's breach of contract claim and on
account of Sequitur's breach of the TSA, Maalt recover against
Sequitur damages in the principal amount of $6,614,496 (the
"Shortfall Payment Damages"), plus pre-judgment interest thereon in
the amount of $3,190,936.21 through October 1, 2025, plus
continuing pre- and post-judgment interest on the unpaid balance of
the Shortfall Payment Damages from and after October 1, 2025, at
the TSA Interest Rate until the Shortfall Payment Damages have been
paid in full;
(b) that, in relation to Sequitur's breach of contract,
promissory estoppel, fraudulent inducement, and negligent
misrepresentation Counterclaims and Third-Party Claims, Sequitur
take nothing against Maalt and Vista;
(c) that, in relation to Sequitur's Bankruptcy Claims and
Maalt's and Vista's Claim Objection, the Claim Objection be
sustained and the Bankruptcy Claims be disallowed in full and in
all respects;
(d) that, in accordance with TSA Sec. 15.19 and pursuant to
chapter 38 of the TCPRC, Maalt recover from Sequitur an amount
equal to the reasonable attorney's fees and expenses incurred by
Maalt in prosecuting its breach of contract claim and in defending
against Sequitur's breach of contract claim, as hereafter
determined by the Court, plus postjudgment interest thereon at the
federal post-judgment interest rate until paid in full; and
(e) that, pursuant to Federal Rule of Bankruptcy Procedure
7054(b)(1), Maalt and Vista each recover from Sequitur an amount
equal to the respective costs incurred by them in this action, plus
post-judgment interest thereon at the federal post-judgment
interest rate until paid in full.
All other requested relief by any party will be denied.
A copy of the Court's Memorandum Opinion dated October 14, 2025, is
available at https://urlcurt.com/u?l=vkGyPy from PacerMonitor.com.
About Vista Proppants and Logistics
Vista Proppants and Logistics, LLC -- https://www.vprop.com/ -- is
a pure-play, in-basin provider of frac sand solutions in producing
regions in Texas and Oklahoma, including the Permian Basin, Eagle
Ford Shale and SCOOP/STACK. It is headquartered in Fort Worth,
Texas.
Vista Proppants and its affiliates sought protection under Chapter
11 of the Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 20-42002)
on June 9, 2020. The petitions were signed by Gary Barton, chief
restructuring officer. At the time of the filing, Vista Proppants
had estimated assets of less than $50,000 and liabilities of
between $100 million and $500 million.
Judge Edward L. Morris oversees the cases.
The Debtors tapped Haynes and Boone, LLP, as their legal counsel;
Jackson Walker LLP as special litigation counsel; and Alvarez &
Marsal North America, LLC, as chief restructuring officer. Kurtzman
Carson Consultants, LLC, is the Debtors' claims, noticing,
balloting and solicitation agent.
WALKER EDISON: Committee Hires M3 Advisory as Financial Advisor
---------------------------------------------------------------
The Official Committee of Unsecured Creditors of Walker Edison
Holdco LLC, et al., seeks approval from the U.S. Bankruptcy Court
for the District of Delaware to employ and retain M3 Advisory
Partners, LP as financial advisor, effective as of September 13,
2025.
M3 Partners will provide these services:
(a) act as financial advisor to the Official Committee of
Unsecured Creditors in connection with the Debtors' Chapter 11
proceedings;
(b) assist the Committee in evaluating the Debtors' business plan,
financial performance, and restructuring strategies;
(c) analyze the Debtors' financial data and assist in formulating
potential recovery alternatives; and
(d) perform such other financial advisory services as may be
required by the Committee in the course of these proceedings.
The firm can be reached at:
Robert Winning, Managing Director
M3 Advisory Partners, LP
1700 Broadway, 19th Floor
New York, NY 10019
About Walker Edison Holdco
Walker Edison, a Delaware corporation headquartered in West Jordan,
Utah, designs and distributes affordable, ready-to-assemble home
furnishings, operating primarily through e-commerce channels rather
than traditional retail stores. Its business is managed by Walker
Edison Intermediate, LLC and Walker Edison Holdco, LLC, and it owns
EW Furniture, LLC, a Utah-based subsidiary. The company sources
most products from suppliers in Asia and Brazil, distributing them
through its Ohio and California centers or directly via major
e-commerce platforms including Wayfair, Amazon, Walmart, Target,
and Home Depot, with gross sales of roughly $124.6 million in
2024.
Walker Edison Holdco, LLC and three affiliates filed Chapter 11
petitions (Bankr. D. Del. Lead Case No. 25-11602) on August 28,
2025. At the time of the filing, Walker Edison Holdco listed up to
$50,000 in assets and between $100 million and $500 million in
liabilities.
Judge Thomas M. Horan oversees the cases.
The Debtors tapped Morris, Nichols, Arsht & Tunnell, LLP as legal
counsel; Lincoln International, LLC as investment banker; MACCO
Restructuring Group, LLC as transformation advisor. Epiq Corporate
Restructuring, LLC is the Debtors' notice, claims and
administrative agent.
WALKER EDISON: Committee Taps Morris James as Legal Counsel
-----------------------------------------------------------
The Official Committee of Unsecured Creditors of Walker Edison
Holdco LLC, et al. seeks approval from the U.S. Bankruptcy Court
for the District of Delaware to hire Morris James LLP to serve as
counsel to the Committee in the jointly administered Chapter 11
cases.
Morris James LLP will provide these services:
(a) provide legal advice and assistance to the Committee in
its consultations with the Debtors relative to the Debtors'
administration of its reorganization;
(b) review and analyze all applications, motions, orders,
statements of operations and schedules filed with the Court by the
Debtors or third parties, advise the Committee as to their
propriety, and, after consultation with the Committee, take
appropriate action;
(c) prepare necessary applications, motions, answers, orders,
reports, and other legal papers on behalf of the Committee;
(d) represent the Committee at hearings held before the Court
and communicate with the Committee regarding the issues raised, as
well as the decisions of the Court; and
(e) perform other legal services for the Committee which may
be reasonably required in this proceeding.
Morris James LLP will receive compensation on an hourly basis, plus
reimbursement of actual, necessary expenses and other charges
incurred. The firm's hourly rates are:
Jeffrey R. Waxman, Partner $910
Eric J. Monzo, Partner $905
Brya M. Keilson, Partner $850
Christopher M. Donnelly, Associate $425
Stephanie Lisko, Paralegal $385
Douglas J. Depta, Paralegal $385
Jessica M. O'Connor, Paralegal $385
Morris James LLP is a "disinterested person" within the meaning of
Section 101(14) of the Bankruptcy Code, as modified by Section
1103(b), and neither the firm nor its partners or associates
represent any interest adverse to the Debtors, their estates, or
creditors.
The firm can be reached at:
Eric J. Monzo, Esq.
Jason S. Levin, Esq.
Siena B. Cerra, Esq.
MORRIS JAMES LLP
500 Delaware Avenue, Suite 1500
Wilmington, DE 19801
Telephone: (302) 888-6800
Facsimile: (302) 571-1750
E-mail: emonzo@morrisjames.com
jlevin@morrisjames.com
scerra@morrisjames.com
About Walker Edison Holdco
Walker Edison, a Delaware corporation headquartered in West Jordan,
Utah, designs and distributes affordable, ready-to-assemble home
furnishings, operating primarily through e-commerce channels rather
than traditional retail stores. Its business is managed by Walker
Edison Intermediate, LLC and Walker Edison Holdco, LLC, and it owns
EW Furniture, LLC, a Utah-based subsidiary. The company sources
most products from suppliers in Asia and Brazil, distributing them
through its Ohio and California centers or directly via major
e-commerce platforms including Wayfair, Amazon, Walmart, Target,
and Home Depot, with gross sales of roughly $124.6 million in
2024.
Walker Edison Holdco, LLC and three affiliates filed Chapter 11
petitions (Bankr. D. Del. Lead Case No. 25-11602) on August 28,
2025. At the time of the filing, Walker Edison Holdco listed up to
$50,000 in assets and between $100 million and $500 million in
liabilities.
Judge Thomas M. Horan oversees the cases.
The Debtors tapped Morris, Nichols, Arsht & Tunnell, LLP as legal
counsel; Lincoln International, LLC as investment banker; MACCO
Restructuring Group, LLC as transformation advisor. Epiq Corporate
Restructuring, LLC is the Debtors' notice, claims and
administrative agent.
WAYNE LEE: Kevin Neiman Named Subchapter V Trustee
--------------------------------------------------
The Acting U.S. Trustee for Region 19 appointed Kevin Neiman as
Subchapter V trustee for Wayne Lee Services, Inc.
Mr. Neiman will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Neiman declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kevin S. Neiman
PO Box 100455
Denver, CO 80250
Tel: (303) 996-8637
Fax: (877) 611-6839
Email: trustee@ksnpc.com
About Wayne Lee Services Inc.
Wayne Lee Services, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 25-16631) on October
13, 2025, with $500,001 to $1 million in assets and liabilities.
Judge Kimberley H. Tyson presides over the case.
Keri L. Riley, Esq., at Kutner Brinen Dickey Riley, P.C. represents
the Debtor as legal counsel.
WEBSTERNT LLC: Taps Dawson Law Firm as Special Litigation Counsel
-----------------------------------------------------------------
Websternt LLC seeks approval from the U.S. Bankruptcy Court for the
Western District of New York to employ Dawson Law Firm, PC as
special litigation counsel.
The firm will represent the Debtor in the adversary proceeding
titled WebsterNT LLC v. Allen M. Lowy, Adv. Pro. No.
1-25-01022-CLB.
The Dawson professional responsible for representation is Raymond
C. Stilwell, whose current rate is $295/hour.
As disclosed in the court filings, Dawson Law Firm, PC is a
"disinterested person" within the meaning of Bankruptcy Code
section 101(14).
The firm can be reached through:
Raymond C. Stilwell, Esq.
Dawson Law Firm, PC
1844 Penfield Rd
Penfield, NY 14526
Phone: (585) 381-8240
About Websternt LLC
WebsterNT, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. N.Y. Case No. 24-11436) on December
19, 2024, with $1 million to $10 million in both assets and
liabilities.
Judge Carl L. Bucki oversees the case.
Scott J. Bogucki, Esq., at Gleichenhaus, Marchese & Weishaar, PC
represents the Debtor as legal counsel.
WEISS NEWMAN: Seeks Chapter 7 Bankruptcy in New York
----------------------------------------------------
Weiss Newman LLC filed for Chapter 7 bankruptcy in the Eastern
District of New York on October 16, 2025, through a voluntary
petition. According to the filing, the company reported liabilities
totaling between $100,001 and $1 million. It also stated that it
has between 1 and 49 creditors as it enters the liquidation
process.
About Weiss Newman LLC
Weiss Newman LLC is a single asset real estate company.
Weiss Newman LLCsought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 25-44974) on October 16,
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 Nancy Hershey Lord handles the case.
WILDFANG HOLDINGS: Claims Will be Paid from Property Sale/Refinance
-------------------------------------------------------------------
Wildfang Holdings LLC filed with the U.S. Bankruptcy Court for the
District of Oregon a Disclosure Statement describing Chapter 11
Plan dated October 13, 2025.
The Debtor is an Oregon liability company owned by Kyle and
Christina Wildfang (the "Wildfangs"). Debtor is a single asset real
estate debtor, in the business of owning and operating the real
property located at 770 Bertelsen Road, Eugene.
The Debtor's sole tenant is Jimmy Mac's, Inc., which operates a bar
and restaurant in the Debtor's real property. Jimmy Mac's, Inc. is
an affiliate, also owned by Kyle and Christina Wildfang. Debtor has
been marketing its property for sale, and filed this case to stop a
foreclosure that was scheduled to occur.
During the two years prior to the date on which the bankruptcy
petition was filed, and at all times since the filing of the
petition, the Wildfangs have managed the Debtor's business affairs.
The Wildfangs will continue to manage the Debtor and its affairs
following confirmation of the Plan and after the Effective Date,
without compensation.
Class 3 consists of General Unsecured Creditors. Any allowed Class
3 Claims shall be paid in full on the Effective Date. This Class is
not impaired.
Class 4 consists of Interest Holders. Equity/Interest Holders shall
retain their interests in the Debtor.
The Debtor shall generate the funds necessary to make the payments
under the Plan by selling its property or refinance to pay off all
outstanding debts. The Debtor, creditors, and interest holders will
take all actions and execute whatever documents are necessary and
appropriate to effectuate the terms of the Plan.
In its schedules, the Debtor has asserted that the value of its
property is approximately $1,600,000. If Debtor's estimates are
correct, and if Debtor was given time to market and sell the
property under favorable conditions, Debtor would have almost
$600,000 in equity over and above the secured debt attached to the
property, after accounting for estimated costs of sale.
If the Plan is not confirmed, Debtor's secured creditor will be
allowed to proceed with foreclosure of its lien against the real
property, which could result in a total loss of equity for Debtor,
priority creditors, unsecured creditors, and equity holders.
Additionally, given the fluctuation of the real estate market,
there is a risk that Debtor will be unable to sell or refinance its
Property for an extended period of time, or at a price near the
estimated value.
A full-text copy of the Disclosure Statement dated October 13, 2025
is available at https://urlcurt.com/u?l=p7MqsZ from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Nicholas J. Henderson, Esq.
Elevate Law Group
6000 Meadows Road, Suite 450
Lake Oswego, OR 97035
Tel: (503) 417-0500
Fax: (503) 417-0501
Email: nick@elevatelawpdx.com
About Wildfang Holdings LLC
Wildfang Holdings, LLC is a single-asset real estate company that
owns and leases a commercial restaurant and bar property located in
Eugene, Oregon.
Wildfang Holdings sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ore. Case No. 25-61981) on July 16,
2025. In its petition, the Debtor reported total assets of
$1,600,000 and total liabilities of $786,313.
Honorable Bankruptcy Judge Thomas M. Renn handles the case.
The Debtor is represented by Nicholas J. Henderson, Esq., at
Elevate Law Group.
WORLDWIDE MACHINERY: Hires Piper Sandler & Co as Investment Banker
------------------------------------------------------------------
Worldwide Machinery Group Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to hire Piper Sandler & Co. as its investment banker.
The firm's services include:
(a) developing, and presenting to the Debtor, a list of
prospective Purchasers;
(b) performing financial analyses of the Debtor and
prospective Purchasers in the context of a possible Business
Combination;
(c) assisting the Debtor in preparing materials to be utilized
in discussions with prospective Purchasers which will describe the
Debtor in such detail as may be appropriate under the
circumstances;
(d) assisting the Debtor in its determination of appropriate
and desirable values to be realized in a Business Combination;
(e) advising the Debtor as to the structure and form of
proposed Business Combinations;
(f) advising and assisting the Debtor's management in making
presentations to the Debtor's Borad of Directors about proposed
Business Combinations;
(g) Counseling the Debtor as to strategy and tactics for
initiating discussions with a prospective Purchaser and
participating in such discussions; and
(h) assisting the Debtor in providing updates to the Debtor's
lenders, as appropriate, regarding any proposed Business
Combinations.
Piper Sandler will be paid at these fees:
(a) Advisory Fee. An advisory fee (the "Advisory Fee") of
$100,000, payable in cash upon the execution of the Engagement
Letter.
(b) Monthly Fee. An advisory fee (the "Monthly Fee") of
$100,000 per month. The initial Monthly Fee shall be earned on May
1, 2025, and thereafter the Monthly Fee shall be earned and payable
in advance on the first day of each month.
(c) Transaction Fee. A fee (the "Transaction Fee") of 3.0
percent (the "Transaction Percentage") of the aggregate Purchase
Price paid in a Business Combination, payable upon the consummation
of such Business Combination. In the event the Purchase Price
exceeds $60 million, the Transaction Percentage shall be increased
to 3.5 percent, and in the event the Purchase Price exceeds $80
million, the Transaction Percentage shall be increased to 4.0
percent. There shall be deducted from any Transaction Fee, (i) 50
percent of the Advisory Fee and the first three Monthly Fees, and
(ii) 100 percent of any Monthly Fees paid to Piper Sandler
thereafter. Only one Transaction Fee can be earned by Piper Sandler
pursuant to the Engagement Letter.
(d) To the extent the Debtors request that Piper Sandler
perform additional financial advisory or investment banking
services not contemplated by the Engagement Letter (including a
valuation analysis and related testimony), such additional fees as
shall be mutually agreed upon by Piper Sandler and the Debtors, in
writing, in advance.
Terry Padden, a managing director of Piper Sandler, 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:
Terry Padden
Piper Sandler & Co.
350 North 5th Street, Suite 1000
Minneapolis, MN 55401
Tel: (713) 546-7318
Email: terry.padden@psc.com
About Worldwide Machinery Group Inc.
Worldwide Machinery Group Inc. is a construction equipment sales
and rental Debtor. Worldwide Machinery and affiliates sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case
No. 25-90379) on September 11, 2025. In its petition, the Debtor
reports estimated assets and liabilities between $100 million and
$500 million each.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtors are represented by Fan B. He, Esq., Samuel P. Hershey,
Esq., Roberto J. Kampfner, Esq., David Michel Turetsky, Esq.,
Kristin Elyse Schultz, Esq., and Charles R. Koster, Esq. at White
Case LLP.
WORLDWIDE MACHINERY: Hires White & Case LLP as Bankruptcy Counsel
-----------------------------------------------------------------
Worldwide Machinery Group Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to hire White & Case LLP as their attorneys.
The firm's services include:
a. advising the Debtors with respect to their powers and
duties as debtors in possession in the continued management and
operation of their businesses and properties;
b. advising and consulting on the conduct of these Chapter 11
cases, including all of the legal and administrative requirements
of operating in Chapter 11;
c. attending meetings and negotiating with representatives of
creditors and other parties in interest;
d. taking all necessary actions to protect and preserve the
Debtors' estates as the Debtors request;
e. preparing pleadings in connection with these Chapter 11
cases, including motions, applications, answers, orders, reports,
and papers necessary or otherwise beneficial to the administration
of the Debtors' estates;
f. representing the Debtors in connection with obtaining
authority to continue using cash collateral and, if necessary,
obtain debtor in possession financing;
g. representing the Debtors in connection with any potential
sale of assets;
h. appearing before the Court and any appellate courts to
represent the interests of the Debtors' estates;
i. advising the Debtors regarding tax matters;
j. advising the Debtors in connection with corporate
governance, transactional matters, other agreements with creditors
and equity holders, the review and preparation of any necessary
documents and agreements, and related actions;
k. advising the Debtors in connection with any disputes or
litigation that may arise in connection with these Chapter 11
cases;
l. advising the Debtors with legal issues related to the
Debtors' financial circumstances;
m. performing all other ancillary necessary legal services for
the Debtors in connection with the prosecution of these Chapter 11
cases;
n. taking any necessary action on behalf of the Debtors as the
Debtors request to obtain approval of a disclosure statement and
confirmation of a Chapter 11 plan, and all documents related
thereto; and
o. performing all other necessary legal services for the
Debtors in connection with these Chapter 11 cases.
The firm will be paid at these hourly rates:
Partners $1,690 to $2,500
Counsel $1,630
Associates $870 to $1,580
Paraprofessionals $355 to $700
Roberto Kampfner, Esq., a partner at White & Case, disclosed in a
court filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Roberto Kampfner, Esq.
White & Case, LLP
555 South Flower Street, Suite 2700
Los Angeles, CA 90071-2433
Tel: (213) 620-7700
Fax: (213) 452-2329
Email: rkampfner@whitecase.com
About Worldwide Machinery Group Inc.
Worldwide Machinery Group Inc. is a construction equipment sales
and rental Debtor. Worldwide Machinery and affiliates sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case
No. 25-90379) on September 11, 2025. In its petition, the Debtor
reports estimated assets and liabilities between $100 million and
$500 million each.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtors are represented by Fan B. He, Esq., Samuel P. Hershey,
Esq., Roberto J. Kampfner, Esq., David Michel Turetsky, Esq.,
Kristin Elyse Schultz, Esq., and Charles R. Koster, Esq. at White
Case LLP.
WORLDWIDE MACHINERY: Seeks to Hire Ordinary Course Professionals
----------------------------------------------------------------
Worldwide Machinery Group Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to retain non-bankruptcy professionals in the ordinary course of
business.
The Debtors need ordinary course professionals to perform services
for matters unrelated to these Chapter 11 cases.
The Debtors seek to pay OCPs 100 percent of the fees and expenses
incurred.
The Debtors do not believe that any of the OCPs have an interest
materially adverse to them, their estates, creditors, or other
parties in interest in connection with the matter upon which they
are to be engaged.
The OCPs include:
T.R. Richey Law Firm, PC
OCP Cap: $3,000 per month
-- Legal services related to liens in Texas
Walker Law
OCP Cap: $3,000 per month
-- Legal services related to liens in Colorado
Babcock Scott & Babcock, P.C.
OCP Cap: $3,000 per month
-- Legal services related to liens in Utah
Weinstein Spira & Co., P.C.
OCP Cap: $20,000 per month
-- Tax and audit services
About Worldwide Machinery Group Inc.
Worldwide Machinery Group Inc. is a construction equipment sales
and rental company. Worldwide Machinery and affiliates sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.
Tex. Case No. 25-90379) on September 11, 2025. In its petition, the
Debtor reports estimated assets and liabilities between $100
million and $500 million each.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtors are represented by Fan B. He, Esq., Samuel P. Hershey,
Esq., Roberto J. Kampfner, Esq., David Michel Turetsky, Esq.,
Kristin Elyse Schultz, Esq., and Charles R. Koster, Esq. at White
Case LLP.
WORLDWIDE MACHINERY: Taps Scott Avila of Paladin Management as CRO
------------------------------------------------------------------
Worldwide Machinery Group Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to hire Paladin Management Group, LLC and designate Scott Avila as
chief restructuring officer.
The firm will render these services:
a. assist the Debtors in development of a short and long-term
liquidity outlook and funding needs analysis, subject to each of
the various strategic alternatives being evaluated;
b. as necessary, work with the Debtors to identify,
implement, and monitor both short-term and long-term liquidity
generating initiatives;
c. assist the Debtors with development of their business
plan, and such other related forecasts and support as may be
required by lenders/creditors in connection with negotiations or by
the Debtors for other corporate purposes;
d. assist the Debtors with communications and/or negotiations
with outside parties including the Debtors' stakeholders, banks and
other third parties, as requested and as may be necessary;
e. prepare for and file a bankruptcy petition, coordinating
and providing administrative support for the proceeding and
developing the Debtors' plan of reorganization or other appropriate
case resolution, if necessary;
f. in connection with a bankruptcy, prepare (i) a disclosure
statement and plan of reorganization, (ii) a liquidation analysis,
(iii) statements of financial affairs and schedules of assets and
liabilities, (iv) a potential preference analysis, (v) a claims
analysis, and (vi) monthly operating reports and other regular
reporting required by the Court, as necessary;
g. assist the Debtors with providing diligence, finance, and
analytical support to the finance organization;
h. assist the Debtors in the development and implementation
of a restructuring strategy designed to maximize enterprise value,
while taking into account the unique interests of all
constituencies;
i. assist the Debtors with contingency planning, if
applicable; and
j. assist with such other matters as may be requested that
fall within Paladin's expertise and that are mutually agreeable.
The current standard hourly rates of Paladin's professionals range
from $425 to $850.
Paladin received a retainer in the amount of $220,000 from the
Debtors.
Scott Avila, a managing partner at Paladin, disclosed in a court
filing that his firm is a "disinterested person" within the meaning
of section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Scott Avila
Paladin Management Group, LLC
633 W. 5th Street, 26th Floor
Los Angeles, CA 90071
Phone: (310) 720-1326
Email: savila@paladinmgmt.com
About Worldwide Machinery Group Inc.
Worldwide Machinery Group Inc. is a construction equipment sales
and rental company. Worldwide Machinery and affiliates sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.
Tex. Case No. 25-90379) on September 11, 2025. In its petition, the
Debtor reports estimated assets and liabilities between $100
million and $500 million each.
Honorable Bankruptcy Judge Christopher M. Lopez handles the case.
The Debtors are represented by Fan B. He, Esq., Samuel P. Hershey,
Esq., Roberto J. Kampfner, Esq., David Michel Turetsky, Esq.,
Kristin Elyse Schultz, Esq., and Charles R. Koster, Esq. at White
Case LLP.
YOUR MAJESTIC: Gets Extension to Access Cash Collateral
-------------------------------------------------------
Your Majestic Maid, LLC received another extension from the U.S.
Bankruptcy Court for the District of Arizona to use cash collateral
to fund operations.
The court authorized the Debtor to use cash collateral for expenses
listed in its monthly budget, subject to a 10% variance and the
terms of the prior order, through confirmation of its Chapter 11
plan, dismissal of its bankruptcy case, or further court order.
The Debtor initially filed for bankruptcy relief on June 2 and
continues to operate under court supervision. Following the filing,
the U.S. Trustee appointed Jody Corrales as Subchapter V trustee.
The Debtor sought interim authorization to use potential cash
collateral on June 4, which was granted by the court on June 11,
allowing use with a 10% variance and scheduling a final hearing.
Subsequently, on July 14, the court extended this authorization to
use cash collateral through September 30.
About Your Majestic Maid
Your Majestic Maid, LLC is a business offering residential and
commercial janitorial and cleaning services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 25-05019) on June 2,
2025, with $100,001 to $500,000 in assets and liabilities.
Judge Madeleine C. Wanslee presides over the case.
The Debtor is represented by Ronald J. Ellett, Esq. at Ellett Law
Offices, P.C.
ZILLA ELECTRIC: Unsecured Creditors to Get 78 Cents on Dollar
-------------------------------------------------------------
Zilla Electric, LLC filed with the U.S. Bankruptcy Court for the
District of Maryland a Subchapter V Plan dated October 9, 2025.
The Debtor is a Maryland limited liability company, formed on
February 29, 2024, by Kyle Guinta. The Debtor is an electrical
contractor, working primarily as a subcontractor in the custom home
industry.
Prior to the formation of Zilla Electric, LLC, Mr. Guinta worked
for Chesapeake Energy Solutions, and after leaving Chesapeake,
Chesapeake sued both Zilla, and Mr. Guinta individually, for breach
of contract and obtained a judgment in the amount of $283,728.00.
The Debtor has been in operation since February of 2024. The
business was operating profitably until it became embroiled in the
litigation with Chesapeake Energy Solutions. Upon obtaining its
judgment in June of 2025, Chesapeake immediately began attempts to
collect the judgment and sent numerous writs of garnishment to the
general contractors. The Debtor filed this case to stop the
garnishment proceedings and to reorganize its affairs.
The value of the property to be distributed under the Plan during
the term of the Plan is not less than the Debtor's projected
disposable income for that same period. Unsecured creditors holding
allowed claims will receive distributions, which the Debtor has
valued at approximately seventy-eight ($0.78) cents on the dollar.
The Plan also provides for the payment of secured, administrative,
and priority claims in accordance with the Bankruptcy Code.
Class 3 consists of Claims of General Unsecured Creditors. Paid in
two equal payments in months thirty-five and thirty-six of the
plan. The allowed unsecured claims total $25,657.00.
The Debtor is currently operating with 3 trucks. It is projected
that one new truck will be added in January of 2026. A second new
truck is projected to be added in January of 2027. Revenues for
each of the new trucks are projected to be $10,000 per month for
the first two months of operation and $20,000 per month for months
three through eight.
A full-text copy of the Subchapter V Plan dated October 9, 2025 is
available at https://urlcurt.com/u?l=LqBSui from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Geri Lyons Chase, Esq.
Law Office of Geri Lyons Chase
2007 Tidewater Colony Drive, Suite 2B
Annapolis, MD 21401
Telephone: (410) 573-9004
E-mail: gchase@glchaselaw.com
About Zilla Electric LLC
Zilla Electric LLC is an electrical contracting company based in
Maryland.
Zilla Electric LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 25-16314) on
July 11, 2025. In its petition, the Debtor reports estimated assets
up to $50,000 and estimated liabilities between $100,000 and
$500,000.
Honorable Bankruptcy Judge Nancy V. Alquist handles the case.
The Debtors are represented by Geri Lyons Chase, Esq. at Law Office
Of Geri Lyons Chase.
ZMETRA LAND: Hires Seder & Chandler as Legal Counsel
----------------------------------------------------
Zmetra Land Holdings LLC seeks approval from the U.S. Bankruptcy
Court for the District of Massachusetts, Central District, to
employ James L. O'Connor Jr., Esq. of Seder & Chandler LLP to serve
as legal counsel in its Chapter 11 case.
Mr. O'Connor will provide these services:
(a) represent the Debtor in all matters related to the
proceeding;
(b) assist the Debtor in the preparation and filing of pleadings
in this Court;
(c) pursue civil litigation;
(d) dispose of and recover assets; and
(e) act on the Debtor's behalf in this proceeding.
Mr. O'Connor will receive compensation as submitted and allowed by
the Court based upon hourly rates presently ranging from $410 per
hour for counsel and $200 for paralegals.
According to the filing, Mr. O'Connor represents no interest
adverse to the interest of the estate, nor does he represent any
other entity connected to or with this estate.
The firm can be reached at:
James L. O'Connor Jr., Esq.
SEDER & CHANDLER LLP
PO Box 2101
780 Main Street, Suite 401
Fitchburg, MA 01420
Telephone: (978) 342-4590
E-mail: joconnor@sederlaw.com
About Zmetra Land Holdings LLC
Zmetra Land Holdings LLC engages in property management and owns a
property at 2 Old Worcester Road in Webster, Massachusetts, valued
at about $2.5 million.
Zmetra Land Holdings LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 25-41079) on October 9,
2025. In its petition, the Debtor reports total assets of
$2,962,293 and total liabilities of $1,835,238.
The Debtor is represented by James L. O'Connor, Jr., Esq. of SEDER
& CHANDLER, LLP.
[] Colorado Bankruptcy Filings Increased 12% in September 2025
--------------------------------------------------------------
According to BizWest, bankruptcy filings in Colorado climbed 12% in
September 2025 from the same month a year earlier, marking another
sign of mounting financial challenges in the state.
The publicly available section of the report provided few specifics
about which counties or industries were most affected, but it noted
that both consumers and businesses are showing greater signs of
financial strain, according to report.
The rise follows a statewide pattern of increased bankruptcy
activity, likely driven by inflation, higher interest rates, and
continued pressure on living and operating costs for Colorado
residents and companies, the report states.
*********
Monday's edition of the TCR delivers a list of indicative prices
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obtained by TCR editors from a variety of outside sources during
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however, be complete or accurate. The Monday Bond Pricing table
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*********
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