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260126.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, January 26, 2026, Vol. 30, No. 26 Headlines 1226 EVERGREEN: Case Summary & Three Unsecured Creditors 15 & 23 VAN SICLEN: Voluntary Chapter 11 Case Summary 1932 CENTRAL: Seeks Chapter 11 Bankruptcy in Illinois 420 EASTERN: Lender Seeks to Prohibit Cash Collateral Access 500909013 ONTARIO: To Sell Ripskirt Hawaii Asset to Sierra Brands A& M AUTOBODY: Seeks Chapter 11 Bankruptcy in Massachusetts ALBERTSONS COS: S&P Rates Proposed Senior Unsecured Notes 'BB+' ALKERMES INC: Moody's Assigns 'Ba2' CFR, Outlook Stable ALL-NIGHT TOWING: Seeks Chapter 7 Bankruptcy in Washington ANASTASIA PARENT: Moody's Ups CFR to Caa1, Alters Outlook to Stable ANTELOPE HOSPITALITY: Inks Deal to Access SBA's Cash Collateral ANTELOPE HOSPITALITY: Inks Deal to Use First Utah's Cash Collateral ANTHOLOGY INC: Gets Court OK for Ch. 11 Reorganization Plan AQUA RESOLUTION: Seeks Chapter 11 Bankruptcy in Illinois ARCHDIOCESE OF NEW ORLEANS: Claimants Move to Fight Diocese Fees ARM VENTURES: Gets Interim OK to Use Cash Collateral ASHLAND HEALTHCARE: Seeks Chapter 11 Bankruptcy in Texas ASURION LLC: S&P Rates Proposed $1.66BB Second-Lien Notes 'B' AUGUSTA QUALITY: Gets Interim OK to Use Cash Collateral BALTIMORE INTERNATIONAL: Case Summary & Five Unsecured Creditors BASIC FOOD: Summary Judgment Ruling in "Lee" Reversed BLACK CANOE: To Sell Vernon Property to Spiro Muka for $599K BLACK SHEEP: Case Summary & 20 Largest Unsecured Creditors BOREN INC: Court Extends Cash Collateral Access to Feb. 18 BRIGHTLINE TRAINS: Fitch Lowers $2BB PABs to 'CCC', On Watch Neg. BUCC ENTERPRISES: Unsecureds Will Get 20% of Claims in Plan BUDDY MAC: To Sell Missouri Stores to National TV Sales for $700K BULLDOG PURCHASER: Moody's Affirms B3 CFR, Outlook Remains Stable CARMEN'S CUBAN: Gets Interim OK to Use Cash Collateral CHANNELVIEW HOTEL: Must File Schedules & Statements by Feb. 19 CK BUILDERS: To Sell 318 Elks Drive Property to C. & C. Castro COAST TO COAST: Gets Interim OK to Use Cash Collateral COLUMBUS MCKINNON: Moody's Rates New $1.225BB Secured Notes 'Ba3' CTF CHICAGO: Court Extends Cash Collateral Access to Feb. 19 DARDEN ENTERPRISES: Voluntary Chapter 11 Case Summary DAVIS PROPERTY: Rental Income & Sale Proceeds to Fund Plan DIFONZO HOLDINGS: Unsecureds Will Get 0.72% of Claims over 5 Years E. GLUCK CORP: To Sell Membership Interest to WITHit Holdings EDWA CONSTRUCTION: Seeks Chapter 11 Bankruptcy in Illinois EMPRESS LLC: Voluntary Chapter 11 Case Summary ENVELOPE 1 INC: Gets Extension to Access Cash Collateral EXTENSIONS PLUS: Has Deal on Cash Collateral Access FALLS OF BRAEBURN: Gets Extension to Access Cash Collateral FERGUSON, MO: Moody's Cuts Issuer to Ba1 & Lease Ratings to Ba2 FIRST BRANDS: Deal Lifts Stay, Keeps Affiliate Cases Active FLAMINGO SEPTIC: Gets Extension to Access Cash Collateral FOCUS FINANCIAL: Moody's Affirms B2 CFR, Outlook Remains Negative FTX TRADING: Trust to Appeal Chapter 11 Charity Claim Dispute Loss GAP INC: Moody's Affirms 'Ba2' CFR & Alters Outlook to Positive GEORGIA PROTONCARE: Case Summary & 20 Largest Unsecured Creditors GEORGIA PROTONCARE: Seeks to Sell Treatment Center at Auction GIBRALTAR INDUSTRIES: S&P Assigns 'BB-' ICR, Outlook Stable GLOBAL SUPPLIES: Unsecureds Will Get 18% Dividend over 60 Months HANSEN-MUELLER: Gets Extension to Access Cash Collateral HERITAGE COLLEGIATE: Court Narrows Claims in Elemental, et al. Case HERITAGE COLLEGIATE: Court Narrows Claims in Vault 26 Case HILBERT GROUP: Case Summary & 16 Unsecured Creditors HILLSDALE PALLETS: Unsecureds to Split $60K in Consensual Plan HYDE ENVIRONMENTAL: Gets Extension to Use Cash Collateral ICRYO BRANDS: Seeks Chapter 11 Bankruptcy in Texas IROBOT CORP: Secures Court Approval for Chapter 11 Plan J AND A 5TH AVE: Rental Income & Loan Modification to Fund Plan J. PATRICK LEE: To Sell Komatsu Excavator to Greentek Resources JANEP HOLDINGS: Case Summary & Two Unsecured Creditors JB GROUP: To Sell Construction Biz to Basta Trading for $6.3MM KULA GRAIN: Files Amendment to Disclosure Statement LANGUAGE KIDS: Gets Interim OK to Use Cash Collateral LAUNDROMAT OF NEVADA: Has Deal on Cash Collateral Access LAZY T TIRE: Case Summary & 20 Largest Unsecured Creditors LAZY T TIRE: Seeks Subchapter V Bankruptcy in Nebraska LEHMAN BROTHERS: U.S. Bank Wins Bid to Dismiss O'Hara Case LEV DIAGNOSTICS: Section 341(a) Meeting of Creditors on February 23 LINQTO INC: Creditors Say Chapter 11 Plan Docs Lack Vital Info LUTHERAN HOME: Unsecureds Will Get 30% to 41% of Claims in Plan MAIN STREET DELI: Seeks Chapter 7 Bankruptcy in Massachusetts MANAGEMENT MCOA: Seeks to Use $1.67MM in Cash Collateral MARINER'S GATE: Lender Seeks to Prohibit Cash Collateral Access MAXIMUS SUPPLY: Court OKs Continued Access to Cash Collateral MBK HOLDINGS: Gets Interim OK to Use Cash Collateral MEHRI AKHLAGHPOUR: Can Continue Malpractice Suit v. Ex-Counsel NBA PROPERTIES: To Sell Pasadena Property to G. Green & Beverly Lu NEXT DAY: Seeks Chapter 11 Bankruptcy in Texas NORCOLD LLC: U.S. Trustee Challenges Chapter 11 Insider Deal OM SAI MED: Gets Interim OK to Use Cash Collateral OSMOSE UTILITIES: S&P Alters Outlook to Negative, Affirms 'B-' ICR PENN BIDCO: Moody's Assigns 'B2' CFR & First Lien Term Loan 'B2' PETCO HEALTH: Moody's Rates New Sr. Secured First Lien Notes 'B3' PLUTO ACQUISITION: Moody's Affirms Caa2 CFR & Cuts Term Loan to Ca PRECISION TRADES: Case Summary & 15 Unsecured Creditors PROEMA AUTOMOTIVA: Asks Court for Chapter 15 Discovery PROTRADE LOGISTICS: Seeks Chapter 11 Bankruptcy in Illinois QUALITY OFFICE: Case Summary & 20 Largest Unsecured Creditors R INTERCONNECTIONS: Seeks Cash Collateral Access Thru Feb 15 RDL SOLUTIONS: Gets Interim OK to Use Cash Collateral RITHM CAPITAL: Fitch Publishes 'BB-' LongTerm IDR, Outlook Stable ROOFING DESIGNS: Kinsale Wins Bid to Dismiss Adversary Case SAKS GLOBAL: Wins Approval to Liquidate Online Unit Inventory SAM'S DINER: Gets Interim OK to Use Cash Collateral SANFORD CONTROLS: Gets Interim OK to Use Cash Collateral SAVI CONSTRUCTION: Unsecureds to Split $50K over 60 Months SCV GRAPHIC: To Sell Graphic Design Equipment to 360 Creative SHIVSANYA CORP: Claims to be Paid from Asset Sale Proceeds SHOSHANAH FASHIONS: Gets Interim OK to Use Cash Collateral SHOSHANAH FASHIONS: Seeks Chapter 11 Bankruptcy in Massachusetts SOUTHERN TREE: Gets Extension to Access Cash Collateral SUNSOURCE BORROWER: S&P Affirms 'B' ICR on Acquisition SUPERIOR ENERGY: Abaco Energy Deal No Impact on Moody's 'B1' CFR TECHNICAL ARTS: Has Until May 18 to Decide on Unexpired Lease TMT GROUP: Gets Interim OK to Use Cash Collateral TONOPAH SOLAR: Gets Court OK to Tap $5MM DIP Funding TONOPAH SOLAR: Seeks to Sell Assets on March 4 Auction TRASK RADIO: Files Amendment to Disclosure Statement TRUCK & TRAILER: To Sell Reitnouer Trailers to Interstate 365 TRUE MADE: Court OKs $370,000 DIP Loan UNIVERSAL DESIGN: To Sell Jacksonville Property to Fuada Velic UNIVERSITY OF HARTFORD: S&P Affirms 'BB+' LT Rating on N/P Bonds VEGAS CUSTOM: Unsecured Creditors to Split $40,620 in Plan VISIONWRIGHTS: Files Emergency Bid to Use Cash Collateral W.R. GRACE: S&P Rates Proposed $500MM Senior Secured Notes 'B-' WATCHTOWER FIREARMS: Updates Liquidating Plan Disclosures WHITE ROCK MEDICAL: Seeks Chapter 11 Bankruptcy in Texas WHITEHALL PHARMACY: Seeks to Use Cash Collateral WISCONSIN LLC: Involuntary Chapter 11 Case Summary ZAMA&ZAMA INC: Income & New Value Contribution to Fund Plan ZELIS HOLDINGS: S&P Alters Outlook to Positive, Affirms 'B' ICR ********* 1226 EVERGREEN: Case Summary & Three Unsecured Creditors -------------------------------------------------------- Debtor: 1226 Evergreen Bapaz LLC 477 Ralph Avenue Brooklyn, NY 11233 Business Description: 1226 Evergreen Bapaz LLC owns and manages a single multi-family rental property at 1226 Evergreen Avenue in the Bronx, New York. Chapter 11 Petition Date: January 23, 2026 Court: United States Bankruptcy Court Eastern District of New York Case No.: 26-40341 Judge: Hon. Elizabeth S Stong Debtor's Counsel: Charles Wertman, Esq. LAW OFFICES OF CHARLES WERTMAN P.C. 100 Merrick Road Suite 304W Rockville Centre NY 11570-4807 Tel: 516-284-0900 Email: charles@cwertmanlaw.com Total Assets: $1,200,000 Total Liabilities: $2,450,754 The petition was signed by Shahab Berokhim as managing member. 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/GZ5WHUI/1226_Evergreen_Bapaz_LLC__nyebke-26-40341__0001.0.pdf?mcid=tGE4TAMA 15 & 23 VAN SICLEN: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: 15 & 23 Van Siclen Ave Properties, LLC 1859 54th Street Brooklyn, NY 11204 Business Description: 15 & 23 Van Siclen Ave Properties, LLC is a single-asset real estate company with its principal assets located at 15 & 23 Van Siclen Avenue in Floral Park, New York. Chapter 11 Petition Date: January 23, 2026 Court: United States Bankruptcy Court Eastern District of New York Case No.: 26-40335 Judge: Hon. Elizabeth S Stong Debtor's Counsel: Leo Jacobs, Esq. JACOBS P.C. 717 5th Avenue, Fl 17 New York, NY 10022 Tel: (212) 229-0476 Fax: (212) 937-3368 E-mail: leo@jacobspc.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Michael Schwartz as sole member. The petition was filed without the Debtor's list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/G77BNGA/15__23_Van_Siclen_Ave_Properties__nyebke-26-40335__0001.0.pdf?mcid=tGE4TAMA 1932 CENTRAL: Seeks Chapter 11 Bankruptcy in Illinois ----------------------------------------------------- On January 20, 2026, 1932 Central LLC filed for Chapter 11 protection in the Northern District of Illinois. According to court filings, the Debtor reports between $1 million and $10 million in debt owed to 1-49 creditors. About 1932 Central LLC 1932 Central LLC is an Illinois-based limited liability company engaged in commercial real estate ownership and property management, holding assets primarily located along Central Avenue in Illinois. 1932 Central LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-00923) on January 20, 2026. In its petition, the Debtor reports estimated assets of $1 million-$10 million and estimated liabilities of $1 million-$10 million. Honorable Bankruptcy Judge Michael B. Slade handles the case. The Debtor is represented by Scott R. Clar, Esq., Crane, Simon, Clar & Goodman. 420 EASTERN: Lender Seeks to Prohibit Cash Collateral Access ------------------------------------------------------------ Silver Hill Capital, LLC asks the U.S. Bankruptcy Court for the Eastern District of New York, Brooklyn Division, to prohibit 420 Eastern Parkway, LLC from using cash collateral, requiring adequate protection payments, and compelling a full accounting and budget for the Brooklyn property at 420 Eastern Parkway. The Debtor's loan history includes a $2.2 million note and mortgage executed in April 2019 with assignments of leases and rents, later transferred through Bayview/Community to Silver Hill Capital by recorded name changes and assignments in 2025. After the Debtor defaulted, Silver Hill commenced foreclosure in November 2022, obtained a receiver in July 2023, and a final foreclosure judgment of $3,194,520 in June 2024. Three scheduled foreclosure sales were each stayed by successive, last-minute Chapter 11 filings by the Debtor (August 2024, May 2025, and October 2025), all as a single-asset real estate debtor whose only asset is the property. In the current case, the Debtor lists the property at $2.2 million and year-to-date rental income of $70,000 but has not employed counsel, sought authorization to use cash collateral, or filed operating reports. Silver Hill asserts a perfected security interest in post-petition rents under the mortgage and assignment of rents, argues the Debtor is improperly using cash collateral without consent or court approval, and seeks to halt such use unless adequate protection equal to the contractual payment is made. The creditor further demands a detailed accounting of all pre- and post-petition rental income since August 9, 2024, turnover of those funds, production of leases and a rent roll, a proposed income/expense budget, segregation of rents in a DIP account, and replacement liens in post-petition proceeds. A copy of the motion is available at https://urlcurt.com/u?l=NTybG4 from PacerMonitor.com. About 420 Eastern Parkway LLC 420 Eastern Parkway, LLC holds full ownership of a 16-unit apartment building at 420 Eastern Parkway in Brooklyn, New York, with an estimated value of $2.2 million. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.Y. Case No. 25-44876) on October 9, 2025. In the petition signed by Sylvester H. Drew, president, the Debtor disclosed $2,285,000 in total assets and $3,335,273 in total liabilities. Judge Nancy Hershey Lord oversees the case. Narissa A. Joseph, Esq. represents the Debtor as legal counsel. Silver Hill Capital, LLC, as lender, is represented by: Jenelle Arnold, Esq Aldridge Pite, LLP 3333 Camino Del Rio South Suite 225 San Diego, CA 92108 Telephone: (858) 750-7600 Facsimile: (619) 590-1385 Email: JArnold@aldridgepite.com 500909013 ONTARIO: To Sell Ripskirt Hawaii Asset to Sierra Brands ----------------------------------------------------------------- KPMG Inc., in its capacity as the court-appointed receiver of 5009013 Ontario Ltd. and its affiliates, seeks permission from the U.S. Bankruptcy Court for the Southern District of New York, to sell Ripskirt Hawaii LLC's Assets, free and clear of liens, claims, interests, and encumbrances. On May 14, 2025, the Canadian Court entered an order appointing KPMG as the Receiver, without security, over all the present and future assets, undertakings, and properties of each of the Debtors acquired for, or used in relation to, a business carried on by each Debtor, including all proceeds. The Debtors had more than $37 million in outstanding indebtedness owing to RBC, exclusive of interest, fees, and expenses, with such indebtedness secured by first priority liens on and security interests in the Property. Upon the Canadian Court's entry of the Appointment Order, the Receiver immediately began working in good faith and with due diligence to fulfill its duties and responsibilities under the Appointment Order with the aim to pursue a sale process with respect to the Debtors' assets in an effort to maximize value for the benefit of all stakeholders. Prior to the Petition Date, the Receiver understands the Debtors explored a sale, refinancing and/or recapitalization of the Ripskirt business in 2024. As part of the 2024 Solicitation Process, the Receiver understands the market was widely canvassed with approximately 350 parties contacted about the opportunity, comprised of approximately 80 strategic and 270 financial buyers. Contemporaneous with the sale process involving the other Debtors' assets, the Receiver has been actively marketing Ripskirt's business and assets in an effort to maximize value. The Receiver held introductory calls with many of these parties, and 15 of the Interested Parties executed non-disclosure agreements with the Receiver and were provided access to a virtual data room maintained by the Receiver containing financial, operational, and other diligence information concerning Ripskirt and its assets to assist the Interested Parties in evaluating a potential transaction. The Receiver received one letter of intent from an Interested Party, Sierra Brands Group LLC, regarding a potential transaction involving some or all of the Selling Debtor's business and assets, which remained subject to additional due diligence. Accordingly, on January 18, 2026, the Receiver entered into the Asset Purchase Agreement (APA) with the Purchaser providing for the sale of substantially all of the Selling Debtor's assets on the terms and conditions set forth. https://urlcurt.com/u?l=Cr0yCI The Foreign Representative believes that the APA is fair and reasonable under the circumstances, is the result of good faith, arm's-length negotiations, and is in the best interests of the Debtors and all stakeholders. The purchase price is $873,739.07 in cash. The Foreign Representative also submits that it is appropriate to sell the Purchased Assets free and clear of successor liability. The APA was negotiated without fraud or collusion, in good faith, and from an arm's-length bargaining position. The Foreign Representative submits that the notice for this Motion, which is being served on all contract counterparties, and in the Giftcraft Receivership in connection with the Approval and Vesting Order, along with the consent requirements built into the APA for Assumed Contracts. About 5009013 Ontario Ltd. 5009013 Ontario Ltd. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr.S.D.N.Y. Case No.: 25-11030 (MG)) on May 20, 2025. Judge Martin Glenn presides over the case. Daniel G. Egan at Chipman Brown Cicero & Cole LLP represents the Debtor as legal counsel. A& M AUTOBODY: Seeks Chapter 11 Bankruptcy in Massachusetts ----------------------------------------------------------- On January 20, 2026, A& M Autobody, Inc. filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Massachusetts. According to court filings, the debtor reports between $1 million and $10 million in debt, owed to 1 to 49 creditors. About A& M Autobody, Inc. A& M Autobody, Inc. is an auto body repair company operating in Massachusetts. A& M Autobody, Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-40056) on January 20, 2026. In its petition, the debtor reports estimated assets of $0 to $100,000 and estimated liabilities of $1 million to $10 million. The case is assigned to Chief U.S. Bankruptcy Judge Elizabeth D. Katz. The debtor is represented by Marques C. Lipton, Esq., of Lipton Law Group. ALBERTSONS COS: S&P Rates Proposed Senior Unsecured Notes 'BB+' --------------------------------------------------------------- S&P Global Ratings assigned its 'BB+' issue-level rating and '3' recovery rating to U.S.-based food retailer Albertsons Cos. Inc.'s (ACI) proposed senior unsecured notes, which will include a $1.1 billion tranche due 2032 and an incremental $500 million add-on to its existing $800 million 5.75% due 2034. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 65%) recovery for lenders in the event of a payment default. All its existing ratings on ACI, including the 'BB+' issuer credit rating, are unchanged. The notes will rank pari passu with the company's existing senior unsecured notes. ACI intends to use the net proceeds from this offering to fully redeem its $1.35 billion 4.625% senior notes due 2027 and redeem a portion of its outstanding $750 million 5.875% senior notes due 2028. Therefore, S&P views the proposed refinancing as leverage neutral. S&P said, "Our rating on ACI reflects its position as a leading food retailer with good market share and distribution capabilities supported by its vast national network of over 2,200 stores. It also reflects our expectation that the company will maintain a balanced financial policy between shareholder returns and keeping leverage within its current range. ACI's identical sales grew 2.4% in the third quarter (ended Nov. 29, 2025) led by growth in its pharmacy business. The company's investments in its digital offerings are also contributing to growth, with digital sales increasing 21% year-over-year and now representing 9.5% of total sales. Still, ACI operates in a fiercely competitive environment that is intensifying as nontraditional food retailers continue to expand their grocery offerings. Additionally, margins continue to experience pressure due to the company's shifting channel mix and investments being made to improve its competitive offering. In fiscal 2026, we expect similar trends and forecast very modest EBITDA growth as the company's productivity improvements help offset margin pressure." ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors -- S&P rates ACI's senior unsecured notes 'BB+', in line with its issuer credit rating on the company. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. -- S&P typically caps its recovery ratings on the unsecured debt issued by companies we rate in the 'BB' category at '3' to reflect that, in distressed situations, they would likely incur additional debt, which would dilute the recovery prospects for their lenders in the event of a payment default. -- S&P's analysis incorporates ACI's significant owned real estate portfolio. -- S&P's simulated default scenario contemplates a deterioration in the company's cash flow due to an economic downturn, which--combined with outsized and fast-paced share erosion from lower-priced mass merchant and club competitors, as well as dollar store operators--leads to a significant decline in its revenue and profitability. -- S&P's recovery analysis assumes $2.4 billion of borrowings will be outstanding under the asset-based lending revolver at default, which reflects a 60% utilization of the facility's $4 billion commitment less undrawn letters of credit. Simulated default assumptions -- Simulated year of default: 2031 -- EBITDA at emergence: $949 million -- EBITDA multiple: 5x -- Gross enterprise value: $4.7 billion -- Gross real estate valuation: $14.3 billion --Net residual value (after 5% property level costs): $8.8 billion Simplified waterfall -- Combined gross value: $13.6 billion -- Net enterprise value after 5% administrative costs: $12.9 billion -- Priority claims: $2.4 billion -- Net value available to ACI unsecured notes: $10.5 billion -- ACI unsecured notes claims: $7.5 billion --ACI senior unsecured notes recovery expectations: 50%-70% (rounded estimate: 65%) Note: All debt amounts include six months of prepetition interest. ALKERMES INC: Moody's Assigns 'Ba2' CFR, Outlook Stable ------------------------------------------------------- Moody's Ratings assigned ratings to Alkermes, Inc. ("Alkermes"), including a Ba2 Corporate Family Rating, Ba2-PD Probability of Default Rating. Concurrently, Moody's assigned Ba2 ratings to the senior secured bank credit facilities comprised of term loan A due 2031 and term loan B due 2031. Additionally, Moody's assigned an SGL-1 Speculative Grade Liquidity Rating (SGL). The outlook is stable. The proceeds from the issuance of $750 million senior secured term loan A due 2031 and $775 million senior secured term loan B due 2031 along with balance sheet cash will be used to acquire Avadel Pharmaceuticals plc, a specialty biopharmaceutical company for roughly $2.2 billion upfront and, to pay related transaction fees and expenses. Social and governance risk considerations were material to the ratings assignment. Alkermes is exposed to social risks, particularly with regards to customer relations, responsible production and demographic and societal trends. The complexity and potential harm related to the end use of the company's products indicate inherent risk exposure, and the company's adherence to manufacturing standards is a relevant consideration. Alkermes also has above average exposure to any material changes to drug pricing policies that occur in the US, given the vast majority of the company's revenue is derived in the US. Among governance considerations, are financial policy and risk management considerations based on Moody's expectations that Alkermes is likely to employ moderate financial leverage to support business development, albeit followed by steady deleveraging. RATINGS RATIONALE Alkermes' Ba2 Corporate Family Rating reflects company's niche specialization in conditions of the central nervous system including schizophrenia, bipolar I and substance abuse disorders and narcolepsy, which have high societal need. The rating also considers Alkermes' expertise in drug delivery technology and its high gross margins, as well as Moody's views that financial leverage will be moderate following the acquisition of Avadel Pharmaceuticals, with Moody's pro forma adjusted debt-to-EBITDA of approximately 3.6x for the FY 2025. Moody's anticipates gross debt/EBITDA in the range of 2.5x - 3.5x, over the next 12-18 months. The rating considers Alkermes' high cash levels, as well as meaningful free cash flows. Risk factors include pipeline execution risks, and revenue concentration in three franchises focused on schizophrenia, bipolar I disorder and narcolepsy. Furthermore, Alkermes is heavily concentrated in the US market. Alkermes' scale is somewhat limited relative to other rated pharmaceutical companies. Additionally, the company's largest drug Vivitrol faces upcoming loss of exclusivity, early in 2027. Alkermes' SGL-1 Speculative Grade Liquidity Rating reflects Moody's expectations for very good liquidity over the next 12-15 months. Alkermes' liquidity will be supported by a material cash balance of approximately $500 million, at the close of the transaction. Moody's estimates that the company will generate at least $250 million of annual free cash flow over the next 12 months. External liquidity is minimal, since Alkermes does not maintain a revolving credit facility. The senior secured term loan A will have amortization of 2.5% in the first two years, increasing to 5% for the following three years, while senior secured term loan B will have 1% annual amortization. There is also an excess cash flow provision for mandatory debt repayment, set at 50% of the excess free cash flow, with step-downs based on leverage. The senior secured term loan A has a maximum secured net leverage covenant set at 4.25x (with step downs beginning in December 2026) and a minimum consolidated interest coverage covenant set at 2.5x There are no financial covenants for the senior secured term loan B. Alternative sources of liquidity are limited as substantially all assets are pledged. Marketing terms for the new credit facilities (final terms may differ materially) include the following: Incremental pari passu debt capacity up to the greater of 100% of closing date EBITDA and 100% of Consolidated EBITDA, plus unlimited amounts subject to 3.75x secured net leverage ratio. There is no inside maturity sublimit. A "blocker" provision restricts the transfer of material intellectual property to unrestricted subsidiaries. Investments in unrestricted subsidiaries are only permitted with the available amounts under the unrestricted subsidiaries investment basket, the ratio investment basket and the general investment basket. There are no protective provisions restricting an up-tiering transaction. Certain covenants may be suspended if the term loans achieve investment grade ratings. Alkermes' $750 million senior secured term loan A due 2031 and $775 million senior secured term loan B due 2031 are both rated Ba2, same as the Ba2 Corporate Family Rating. The rating reflects the fact that the senior secured term loans constitute the preponderance of the company's debt. ESG CONSIDERATIONS Alkermes' CIS-3 indicates that ESG considerations have a limited impact on the current credit rating with potential for greater negative impact over time. Alkermes is exposed to social risks (S-4), particularly with regards to customer relations, responsible production and demographic and societal trends. The complexity and potential harm related to the end use of the company's products indicate inherent risk exposure, and the company's adherence to manufacturing standards is a relevant consideration. Alkermes also has above average exposure to any material changes to drug pricing policies that occur in the US, given the vast majority of the company's revenue is derived in the US. The score also reflects exposure to governance risk (G-3), most notably related to financial strategy and risk management. The score also reflects the company's moderate leverage offset by a track record of operating with low financial leverage. Lastly, environmental risk considerations (E-2) reflects that the company does not face significant environmental exposures that are materially different than the industry norm. The stable outlook reflects Moody's expectations for strengthening in operating performance supported by growth of key franchises, including Lybalvi and Lumryz. Furthermore, Moody's expects Alkermes' financial leverage will improve, supported by EBITDA growth and to a lesser extent debt repayment, over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that could lead to an upgrade of Alkermes' ratings include organic earnings growth from the core specialty pharmaceuticals, along with improved product diversity, and successful pipeline execution. Additionally, Alkermes would need to effectively manage its strategic initiatives under conservative financial policies such that adjusted debt/EBITDA financial leverage is sustained below 2.5x. The company would also need to maintain good liquidity highlighted by consistently positive free cash flow, for an upgrade to be considered. Factors that could lead to a downgrade include weaker operating results, particularly if the company faces material competitive pressure in its key franchises. Additionally, should the company pursue debt-financed acquisitions or share-holder distributions such that adjusted debt/EBITDA is sustained above 3.5x, or if the company fails to generate positive free cash flow on a sustained basis, could lead to negative credit implications. Alkermes, Inc. is a US subsidiary of Dublin, Ireland-based Alkermes plc (collectively "Alkermes"). Alkermes is a specialty biopharmaceutical company that develops medications in the areas of neuroscience. Reported revenues pro forma for acquisition of Avadel Pharmaceuticals for the twelve months ended September 30, 2025, approximated $1.7 billion. The principal methodology used in these ratings was Pharmaceuticals published in September 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. ALL-NIGHT TOWING: Seeks Chapter 7 Bankruptcy in Washington ---------------------------------------------------------- On January 19, 2026, All-Night Towing LLC filed for Chapter 7 protection in the U.S. Bankruptcy Court for the Western District of Washington. According to court filings, the Debtor reports between $100,001 and $1,000,000 in debt owed to 1–49 creditors. About All-Night Towing LLC All-Night Towing LLC provides vehicle towing and roadside assistance services, supporting private motorists, commercial clients, and law enforcement agencies. All-Night Towing LLC sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. Case No. 26-10141) on January 19, 2026. In its petition, the Debtor reports estimated assets of $0–$100,000 and estimated liabilities of $100,001–$1,000,000. Honorable Bankruptcy Judge Christopher M. Alston handles the case. The Debtor is represented by John A. Sterbick, Esq., of Sterbick and Associates, P.S. ANASTASIA PARENT: Moody's Ups CFR to Caa1, Alters Outlook to Stable ------------------------------------------------------------------- Moody's Ratings upgraded Anastasia Parent, LLC's (doing business as Anastasia Beverly Hills or ABH) Corporate Family Rating to Caa1 from Ca and the Probability of Default Rating to Caa1-PD from D-PD. Moody's also assigned a Caa1 rating to the company's new $272 million backed senior secured first lien term loan due June 2030. Moody's are withdrawing the Ca rating on the $650 million original principal backed senior secured first lien term loan that was due August 2025 following a restructuring agreement with lenders that retired the instrument. The outlook changed to stable from negative. The CFR upgrade to Caa1 follows ABH's December 24, 2025 announcement [1] that it had completed a debt restructuring of its $650 million first lien term loan. The restructuring included a $225 million equity infusion from the founder, a debt pay down, a debt to equity conversion, and a conversion of the remaining principal and interest into the new term loan maturing June 2030. As a result, total debt declined meaningfully to $272 million from about $606 million resulting in a significant drop in cash interest expense to approximately $23 million of annual cash interest at current interest rates. Cash pro forma for the transactions increased to roughly $33 million. Although ABH currently has no committed revolver, the new structure allows for the addition of a $30 million asset based lending (ABL) facility if needed, which Moody's views as potential incremental liquidity support. Moody's projects debt-to-EBITDA leverage to decline to a mid 5x range by the end of 2026 from over 11x prior to the transaction due to the lower debt and interest burden. The founding Soare family maintains a majority equity position in the company following the restructuring. Moody's considers the restructuring a resolution of the missed payment default on the term loan, which along with the CFR upgrade leads to an upgrade of the PDR to Caa1-PD. ABH had been operating under a forbearance agreement with lenders following the payment default. RATINGS RATIONALE The Caa1 CFR reflects ABH's reduced leverage and interest burden and improved liquidity following the December 2025 debt restructuring, but also the execution risk to sustain an earnings turnaround. Lower interest expense will support a return to positive free cash flow in 2026, while credit metrics are expected to improve alongside ABH's robust 2026 product innovation schedule, which should help drive higher sales volumes. Demand in the prestige beauty category remains comparatively resilient, with premium consumers showing fewer signs of trade down behavior than mass market shoppers. The rating also considers elevated execution risk as ABH implements its turnaround plan. A sustained improvement would require renewed revenue and EBITDA growth, consistently positive free cash flow, and durable margin gains. ABH's small scale, concentration in brow focused products, and exposure to a fragmented and highly competitive beauty market, where ongoing investment in marketing and product relevance is essential, remain constraining factors. The company's sales are heavily concentrated in the US, increasing exposure to domestic economic conditions, and its reliance on overseas sourcing leaves it vulnerable to tariffs and elevated input costs over the next 12 months. These challenges are partially offset by ABH's strong brand recognition, established track record of product innovation, and solid presence across major specialty retailers such as Sephora and Ulta, as well as its expanding e commerce footprint through Amazon, TikTok Shop and other digital channels, often supported by enhanced distribution partnerships. Governance risk is a key factor in the rating action. ABH has historically pursued aggressive financial policies, reflected in high leverage and periods of weak liquidity that ultimately contributed to a distressed restructuring. The company has now addressed its near-term maturities and improved its capital structure through the recent refinancing. Continued prudent financial management, disciplined capital allocation, and sustained liquidity oversight will be important to maintaining credit stability. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The stable outlook reflects Moody's expectations that ABH will maintain adequate liquidity, benefit from lower debt and cash interest, and generate sufficient cash flow to meet reduced debt service, balanced against elevated execution risk given ongoing category softness, intense competition, narrow product focus and modest scale. The ratings could be upgraded if the company sustainably improves revenue and operating earnings through strong execution of new product launches, good reinvestment, and cost discipline. An upgrade would also require consistent, positive free cash flow generation and Moody's adjusted debt to EBITDA sustained below 6.0x. The ratings could be downgraded if earnings fail to improve, free cash flow is weak, or liquidity deteriorates. A downgrade could also result from unexpected operational setbacks in executing the turnaround plan, including the inability to stabilize revenue and EBITDA or sustain positive free cash flow. Debt funded acquisitions or shareholder distributions could also lead to a downgrade. The principal methodology used in these ratings was Consumer Packaged Goods published in June 2022. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. Founded in 1997 by beauty entrepreneur Anastasia Soare, Anastasia Beverly Hills (ABH) is a prestige cosmetics brand known for its innovation in brow, face, and lip products. Headquartered in Los Angeles, ABH operates primarily in the US, with distribution through major retailers such as Dillard's, Macy's, Nordstrom, Sephora, Ulta, as well as expanding e-commerce channels. The company generated approximately $240 million in revenue for the 12 months ending September 2025. ABH maintains a growing international footprint with a presence in the UK, Europe, Middle East, and Asia. The company is majority owned by the Soare family, with former lenders and private equity firm TPG holding a minority stake. ANTELOPE HOSPITALITY: Inks Deal to Access SBA's Cash Collateral --------------------------------------------------------------- Antelope Hospitality, LLC and the U.S. Small Business Administration advise the U.S. Bankruptcy Court for the District of Arizona that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. Antelope Hospitality, which operates a hotel located at 287 N. Lake Powell Blvd, Page, Arizona, filed an emergency motion for interim and final orders approving use of cash collateral on December 22, 2025. The property is encumbered by multiple liens: a first- and second-position deed of trust and assignment of rents in favor of First Utah Bank, and a third-position deed of trust in favor of the SBA. In addition, the Debtor's personal property is subject to a first-priority blanket lien for First Utah Bank and a second-priority blanket lien for the SBA. Under the stipulation, the SBA consents to the Debtor's use of cash collateral for ordinary and necessary post-petition expenses through April 30, in accordance with the budget and a total 20% monthly variance. As adequate protection, the Debtor will grant the SBA replacement liens on post-petition assets to the same extent, validity, and priority as its pre-bankruptcy liens, and make scheduled payments of $900 on February 25, $900 on March 25, and $3,000 on April 25, toward the indebtedness secured by the SBA lien. The stipulation clarifies that the SBA retains the right to seek additional adequate protection after April 30, including claims under 11 U.S.C. section 507(b) for any diminution in collateral value. The Debtor is simultaneously negotiating with First Utah Bank for its consent to cash collateral use during the approved period; while a final agreement has not yet been reached, First Utah Bank has consented to use through January 31, subject to the budget and a 20% variance. A copy of the motion is available at https://urlcurt.com/u?l=dHUBlh from PacerMonitor.com. About Antelope Hospitality Antelope Hospitality LLC, doing business as Scenic View Inn, operates a full-service hotel in Page, Arizona. The hotel is positioned near major Northern Arizona attractions including Antelope Canyon, Horseshoe Bend, Glen Canyon National Recreation Area, Lake Powell, and local dining and shopping options, serving as a base for tourists, photographers, and adventurers. Antelope Hospitality filed for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-12347) on December 22, 2025, listing up to $10 million in estimated assets and up to $50 million in estimated liabilities. Honorable Bankruptcy Judge Paul Sala handles the case. The Debtor is represented by Bradley D. Pack, Esq., at Engelman Berger, PC. ANTELOPE HOSPITALITY: Inks Deal to Use First Utah's Cash Collateral ------------------------------------------------------------------- Antelope Hospitality, LLC and First Utah Bank advise the U.S. Bankruptcy Court for the District of Arizona that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. The Debtor, which operates a hotel located at 287 N. Lake Powell Blvd, Page, Arizona, sought authority to use cash collateral through April 30 but the parties agreed that, while negotiations continue, First Utah Bank would consent to the Debtor's use of cash collateral only through January 31. The Debtor's property is encumbered by multiple liens, including first- and second-position deeds of trust and assignments of rents in favor of First Utah Bank recorded in 2019, as well as a third-position deed of trust in favor of the U.S. Small Business Administration recorded in 2022. Additionally, the Debtor's personal property is subject to a first-priority blanket lien in favor of First Utah Bank and a second-priority blanket lien in favor of the SBA, both perfected by UCC-1 filings. Under the stipulation, the Debtor is authorized to use cash collateral for ordinary and necessary post-petition expenses through January 31, subject to the budget and a 20% variance for January. First Utah Bank is granted replacement liens in post-petition assets to the same extent, validity, and priority as its pre-bankruptcy security interests to the extent cash collateral is used. The stipulation preserves all of First Utah Bank's rights to seek additional adequate protection, including asserting claims under 11 U.S.C. section 507(b) for any diminution in value of its collateral, beyond January 31. A copy of the motion is available at https://urlcurt.com/u?l=351vB2 from PacerMonitor.com. About Antelope Hospitality Antelope Hospitality, LLC, doing business as Scenic View Inn, operates a full-service hotel in Page, Arizona. The hotel is positioned near major Northern Arizona attractions including Antelope Canyon, Horseshoe Bend, Glen Canyon National Recreation Area, Lake Powell, and local dining and shopping options, serving as a base for tourists, photographers, and adventurers. Antelope Hospitality filed for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 25-12347) on December 22, 2025, listing up to $10 million in assets and up to $50 million in liabilities. Honorable Bankruptcy Judge Paul Sala handles the case. The Debtor is represented by Bradley D. Pack, Esq., at Engelman Berger, PC. First Utah Bank, as secured creditor, is represented by: Matthew H. Sloan, Esq. Jennings Haug Keleher McLeod Waterfall, LLP 2800 North Central Avenue, Suite 1800 Phoenix, AZ 85004-1049 Telephone: 602-234-7800 Facsimile: 602-277-5595 mhs@jkwlawyers.com ANTHOLOGY INC: Gets Court OK for Ch. 11 Reorganization Plan ----------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that education technology group Anthology received court approval Friday, January 23, 2026, for a revised Chapter 11 reorganization plan that incorporates a settlement of a prepetition lawsuit to help fund a deal providing partial recoveries to unsecured creditors. Under the confirmed plan, proceeds from the litigation settlement will be used to increase distributions to unsecured claimholders, allowing Anthology to move forward with its restructuring while resolving objections tied to creditor recoveries and positioning the company to emerge from bankruptcy, the report relays. About Anthology Inc. Anthology Inc., headquartered in Boca Raton, Florida, provides education technology software and cloud-based services to higher-education institutions, governments, and businesses in more than 80 countries. Formed through the consolidation of Campus Management Corp., Campus Labs Inc., and iModules Software Inc., the Company offers platforms for teaching and learning, student information and enterprise planning, customer relationship management, and student success, along with tools for admissions, enrollment management, alumni engagement, and institutional effectiveness. It employs about 1,550 people in the United States and reported revenue of about $450 million in fiscal 2025. Anthology sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex.) on September 29, 2025. In the petitions signed by Heath C. Gray as chief restructuring officer, the Debtors disclose an estimated assets (on a consolidated basis) of $1 billion to $10 billion and estimated liabilities (on a consolidated basis) of $1 billion to $10 billion. The other affiliates are Blackboard Campuswide of Texas, Inc., OrgSync, Inc., Admissions US, LLC, Blackboard LLC, Blackboard Holdings, LLC, Blackboard Super Holdco, LLC, Edcentric Holdings, LLC, Astra Acquisition Corp., Astra Intermediate Holding Corp., Campus Management Acquisition Corp., Academic Management Systems, LLC, Edcentric Midco, Inc., Edcentric, Inc., Anthology Inc. of Missouri, Anthology Inc. of NY, ApplyYourself, Inc., AY Software Services, Inc., BB Acquisition Corp., BB Management LLC, Blackboard Collaborate Inc., Blackboard Student Services Inc., Blackboard Tennessee LLC, Higher One Real Estate SP, LLC, MyEdu Corporation, Blackboard International LLC, and Perceptis, LLC. Judge Alfredo R. Perez presides over the case. The Debtors' Local Bankruptcy & Conflicts Counsel is Charles A. Beckham, Jr., Esq., Arsalan Muhammad, Esq., Kourtney Lyda, Esq., and Re'Necia Sherald, Esq., at HAYNES AND BOONE, LLP, in Houston Texas; and Charles M. Jones II, Esq., at HAYNES AND BOONE, LLP, in Dallas, Texas. The Debtors' Bankruptcy Counsel is Chad J. Husnick, P.C., and Charles B. Sterrett, Esq., at KIRKLAND & ELLIS LLP and KIRKLAND & ELLIS INTERNATIONAL LLP, in Chicago, Illinois; and Melissa Mertz, Esq., at KIRKLAND & ELLIS LLP and KIRKLAND & ELLIS INTERNATIONAL LLP, in New York. The Debtors' Investments Banker is PJT PARTNERS LP. The Debtors' Restructuring Advisor is FTI CONSULTING, INC. The Debtors' Claims & Noticing Agent STRETTO INC. AQUA RESOLUTION: Seeks Chapter 11 Bankruptcy in Illinois -------------------------------------------------------- On January 17, 2026, Aqua Resolution LLC filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Illinois. According to court filings, the debtor reports between $1 million and $10 million in debt owed to 1–49 creditors. About Aqua Resolution LLC Aqua Resolution LLC is a company engaged in water-related services and environmental solutions. Aqua Resolution LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-00804) on January 17, 2026. In its petition, the debtor reports estimated assets of $100,001–$1,000,000 and estimated liabilities of $1 million–$10 million. Honorable Bankruptcy Judge Michael B. Slade handles the case. The debtor is represented by David P. Leibowitz, Esq. of the Law Offices of David P. Leibowitz LLC. ARCHDIOCESE OF NEW ORLEANS: Claimants Move to Fight Diocese Fees ---------------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that sexual abuse survivors' counsel argued Thursday, January 22, 2026, before a Louisiana bankruptcy court that the claimants are entitled to challenge fee requests filed in the Chapter 11 case of the Roman Catholic Archdiocese of New Orleans, rejecting assertions that they lack standing. According to the survivors' attorneys, the resolution of professional compensation requests directly impacts the value and feasibility of any eventual recovery for abuse claimants, giving them a continuing interest in how the estate is administered. About Roman Catholic Church of The Archdiocese Of New Orleans The Roman Catholic Church of the Archdiocese of New Orleans -- https://www.nolacatholic.org/ -- is a non-profit religious corporation incorporated under the laws of the State of Louisiana. Created as a diocese in 1793, and established as an archdiocese in 1850, the Archdiocese of New Orleans has educated hundreds of thousands in its schools, provided religious services to its churches and provided charitable assistance to individuals in need, including those affected by hurricanes, floods, natural disasters, war, civil unrest, plagues, epidemics, and illness. Currently, the archdiocese's geographic footprint occupies over 4,200 square miles in southeast Louisiana and includes eight civil parishes: Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist, St. Tammany, and Washington. The Roman Catholic Church for the Archdiocese of New Orleans sought Chapter 11 protection (Bankr. E.D. La. Case No. 20-10846) on May 1, 2020. The archdiocese was estimated to have $100 million to $500 million in assets and liabilities as of the bankruptcy filing. Judge Meredith S. Grabill oversees the case. Jones Walker, LLP and Blank Rome, LLP, serve as the archdiocese's bankruptcy counsel and special counsel, respectively. Donlin, Recano & Company, Inc., is the claims agent. The U.S. Trustee for Region 5 appointed an official committee of unsecured creditors on May 20, 2020. The committee is represented by the law firms of Pachulski Stang Ziehl & Jones, LLP and Locke Lord, LLP. Berkeley Research Group, LLC is the committee's financial advisor. ARM VENTURES: Gets Interim OK to Use Cash Collateral ---------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida entered a second interim order granting Arm Ventures, LLC approval to use cash collateral. Under the order, the Debtor is authorized to use cash collateral only on an interim basis and strictly in accordance with the revised budget. This authorization remains in effect through January 29. The Debtor projects total operational expenses of $11,048. As adequate protection, secured lender Precedent Acquisitions, LLC will be granted replacement liens on the Debtor's post-petition assets similar to its pre-bankruptcy collateral, maintaining the same validity and priority as its pre-bankruptcy liens. In addition, the Debtor must make monthly payments of $7,000. The court expressly reserved all rights regarding the validity, priority, and extent of the secured lender's liens and claim amounts. The next hearing is scheduled for January 29. About Arm Ventures LLC Arm Ventures LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-22944-LMI) on October 31, 2025. The Debtor previously filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 16-23633) on October 4, 2016. This bankruptcy case was closed on May 15, 2017. At the time of the recent filing, Debtor had estimated assets of between $1,000,001 to $10 million and liabilities of between $1,000,001 to $10 million. Judge Laurel M. Isicoff (LMI) oversees the case. Joel M. Aresty, P.A. is Debtor's legal counsel. ASHLAND HEALTHCARE: Seeks Chapter 11 Bankruptcy in Texas -------------------------------------------------------- On January 21, 2026, Ashland Healthcare, LLC filed for Chapter 11 protection in the Southern District of Texas. According to court filings, the Debtor reports between $10 million and $50 million in debt owed to 1-49 creditors. About Ashland Healthcare, LLC Ashland Healthcare, LLC is a healthcare services provider based in Texas, operating clinics and outpatient facilities that offer a range of medical and patient care services. Ashland Healthcare, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-90120) on January 21, 2026. In its petition, the Debtor reports estimated assets of $0-$100,000 and estimated liabilities of $10 million to $50 million. Honorable Bankruptcy Judge Alfredo R. Perez handles the case. The Debtor is represented by Omar Jesus Alaniz, Esq., Reed Smith LLP. ASURION LLC: S&P Rates Proposed $1.66BB Second-Lien Notes 'B' ------------------------------------------------------------- S&P Global Ratings assigned its 'B' issue rating to Asurion LLC's proposed $1.66 billion second-lien secured notes due 2034. S&P also assigned a '5' recovery rating, indicating its expectation of modest recovery (10%-30%; rounded estimate: 15%) in the event of payment default. All existing ratings, including the 'B+' issuer credit ratings on Asurion Group Inc., Asurion LLC, and Lonestar Intermediate Super Holdings LLC, are unchanged by the new debt issuance. S&P said, "We view this transaction as leverage neutral, as Asurion intends to use the proceeds from the new issuance to refinance its existing $1.64 billion second-lien term loan due January 2028. We continue to expect S&P Global Ratings-adjusted leverage for Asurion (on a pro forma basis including Domestic & General EBITDA) to be roughly 6x for year-end 2025, within rating thresholds." In December 2025, Asurion announced its acquisition of Domestic & General, which is expected to close in mid-2026. Subsequently in December, the company issued $3.3 billion to finance the transaction and refinance its B-9 term loan that was maturing in 2027. AUGUSTA QUALITY: Gets Interim OK to Use Cash Collateral ------------------------------------------------------- Augusta Quality, LLC received interim approval from the U.S. Bankruptcy Court for the Southern District of Georgia, Augusta Division, to use cash collateral to fund the operation of its commercial landscaping business. The court authorized the Debtor to use cash collateral in accordance with its interim budget through February 28, with a permitted variance of up to 25%. As of the petition date, the Debtor's cash collateral is estimated at $256,630.28, consisting primarily of pre-bankruptcy accounts receivable. The lenders with potential interests in the cash collateral include the U.S. Small Business Administration and Byzfunder. As adequate protection, the court granted the lenders a replacement lien on the Debtor's inventory, deposits, accounts receivable and proceeds, with the same validity and priority as their pre-bankruptcy liens. The replacement lien does not apply to Chapter 5 avoidance actions. The interim order preserves the Debtor's right to challenge the extent, validity, or priority of any pre-bankruptcy lien. No determination was made regarding lien perfection or priority at this stage. The order is available at https://is.gd/76ZIHN from PacerMonitor.com. A final hearing is set for February 26. August Quality has identified several UCC-1 financing statements that may give rise to interests in its cash collateral, including a lien filed by the SBA in 2020 and renewed in 2025, and two filings by Corporation Service Company, one of which relates to an obligation the Debtor believes has already been paid in full and should have been terminated. Another filing is associated with Byzfunder, which the Debtor characterizes as a merchant cash advance that, despite being styled as a sale, has the substance of a loan secured by the Debtor's assets. As of the petition date, Augusta Quality's cash collateral consists primarily of accounts receivable. The Debtor treats collections, pre-bankruptcy receivables, inventory, and business proceeds as potential cash collateral in which the identified creditors may claim an interest. About Augusta Quality LLC Augusta Quality LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ga. Case No. 26-10018) on January 7, 2026, listing between $500,001 and $1 million in assets and between $1 million and $10 million in liabilities. Judge Susan D. Barrett presides over the case. Bowen Anderson Klosinski, Esq., at Klosinski Overstreet represents the Debtor as legal counsel. BALTIMORE INTERNATIONAL: Case Summary & Five Unsecured Creditors ---------------------------------------------------------------- Debtor: Baltimore International Warehousing & Transportation, Inc. 7646-7656 Canton Center Drive Baltimore, MD 21224 Business Description: Baltimore International Warehousing & Transportation, Inc. provides warehousing, transportation, and logistics services, including distribution, freight handling, bonded storage, container freight station operations, and related cargo services. The Company operates in Baltimore, Maryland, serving importers, exporters, and transportation providers, with facilities located near the Port of Baltimore and supporting domestic and international freight movements. Chapter 11 Petition Date: January 22, 2026 Court: United States Bankruptcy Court District of Maryland Case No.: 26-10737 Debtor's Counsel: Joseph Selba, Esq. TYDINGS & ROSENBERG, LLP One East Pratt Street Baltimore, MD 21202 Tel: (410) 752-9753 E-mail: jselba@tydings.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Sue Monaghan as president. A full-text copy of the petition, which includes a list of the Debtor's five unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/VBUE2FA/Baltimore_International_Warehousing__mdbke-26-10737__0001.0.pdf?mcid=tGE4TAMA BASIC FOOD: Summary Judgment Ruling in "Lee" Reversed ----------------------------------------------------- In the appeal styled JAE HO LEE, et al., Appellants, -v- SAMUEL AHNE, et al., Appellees, Case No. 21-cv-246 (Bankr. S.D.N.Y.), Judge Lewis J. Liman of the U.S. Bankruptcy Court for Southern District of New York reversed the grant of summary judgment in favor of Ahne Law, P.C. and Samuel Ahne. This case is remanded for further proceedings. Plaintiffs-Appellants Jae Ho Lee, Soyoun Park, and Basic Food Groups, LLC appeal the December 18, 2020 order of the Bankruptcy Court granting summary judgment to Defendants-Appellees Ahne Law, P.C. and Samuel Ahne pursuant to Federal Rule of Bankruptcy Procedure 7056 and dismissing the remaining claims in their adversary complaint for breach of fiduciary duty and breach of the covenant of good faith and fair dealing. The adversary action arises out of the December 2012 acquisition by Lee and Park from Cheol Min Kim of the stock of Basic Food, a small eatery in New York City. Lee and Park acquired sole membership interest in Basic Food from Kim for a commitment equal to $1.8 million that was partially financed by a $1.3 million loan from Noah Bank, guaranteed by Lee and Park and secured by a lien on the Debtor's assets. Basic Food defaulted under the loan and, in April 2015, filed a voluntary petition under chapter 11 of the Bankruptcy Code. In this adversary proceeding, Plaintiffs filed suit against Kim; Aspen Market Place Corp., a business Kim at the time owned in Hoboken, New Jersey; Noah Bank; Edward Shin, an employee of Noah Bank; Ahne; and Ahne Law for damages related to their alleged wrongdoing in connection with Lee and Kim's acquisition of Basic Food. In summary, Plaintiffs alleged that, as a result of a scheme by Kim and Noah Bank, Lee was fraudulently induced to purchase Basic Food, and with it an underwater revenue stream and latent labor law fines or assessments. In their Second Amended Complaint, Plaintiffs alleged five causes of action against the Ahne Defendants: (1) substantive violations of the Racketeer Influenced Corrupt Organizations Act ("RICO"), 18 U.S.C Sec. 1962(c), (2) conspiracy to commit RICO violations, 18 U.S.C. Sec. 1962(d), (3) breach of fiduciary duty, (4) declaratory judgment, and (5) breach of contract and the implied covenant of good faith and fair dealing. In July 2016, the Bankruptcy Court dismissed the RICO counts against the Ahne Defendants, and, in October 2018, Plaintiffs voluntarily dismissed the declaratory judgment count against all defendants. Plaintiffs contend that the Bankruptcy Court erred as a matter of law in permitting the Ahne Defendants to belatedly seek summary judgment. They also argue that material factual disputes precluded the grant of summary judgment. Plaintiffs contend that the failure of the Ahne Defendants to provide any expert opinion "clearing them of malpractice" alone created a material issue of fact. Plaintiffs also separately point to evidence in the record that Ahne: (1) did not perform due diligence in connection with the acquisition; (2) failed to alert Lee, his client, to the potential issues with purchasing Basic Food through a stock sale; (3) did not receive a written waiver from Lee related to his conflict of interest; and (4) drafted a buyback agreement that mistakenly benefited Kim instead of Lee. The Court finds that, construing the facts in the light most favorable to Plaintiffs, a reasonable juror could find that the Ahne Defendants breached their fiduciary duty in connection with the buyback agreement. Construing the facts in Plaintiffs' favor, the Court further finds there is also sufficient evidence in the record from which a reasonable juror could conclude that Ahne's conduct with respect to the buyback provision proximately caused Lee's damages. A copy of the Court's Order is available at https://urlcurt.com/u?l=YbTjq1 from PacerMonitor.com. About Basic Food Basic Food Group, LLC, dba Zeytinz, is a deli/cafe headquartered in New York, New York. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 15-10892) on April 10, 2015, listing $3.29 million in total assets and $1.5 million in total liabilities. The petition was signed by Jaeho Lee, president. Judge James L. Garrity Jr. presides over the case. Rosemarie E. Matera, Esq., at Kurtzman Matera, PC, serves as the Debtor's bankruptcy counsel. BLACK CANOE: To Sell Vernon Property to Spiro Muka for $599K ------------------------------------------------------------ Black Canoe LLC seeks permission from the U.S. Bankruptcy Court for the District of Maryland, to sell substantially all Assets, free and clear of liens, claims, interests, and encumbrances. At the time of filing of the bankruptcy case, the Debtor owned and still owns the real property known as 4 Park Street, Vernon, Connecticut, hereinafter referred to as the "Real Property". The Real Property was scheduled at $800,000.00. The Real Property is secured by a judgment lien in favor of Van Horst General Contractors, LLC, hereinafter referred to as "Van Horst". Real estate taxes are also due to the Town of Vernon. Prior to the filing of this Chapter 11 bankruptcy, the Debtor had been marketing the property for sale. After extensively marketing the property, the Debtor has executed a contract of sale for the Real Property, in the amount of $599,000.00. The Debtor believes that the sale of the property is in the best interests of the bankruptcy estate because it will fully pay the lien of Van Horst, as well as to the other creditors. The Debtor is the owner of one commercial building located in Vernon Connecticut and has no other assets. The building is currently unoccupied, other than a small portion which is subject to a long-term lease. The Debtor has intended to renovate the building and enter into a long-term lease. Van Horst was hired to do certain renovations and a balance remained unpaid. Van Horst filed suit and ultimately began a mechanic's lien foreclosure, which is pending. The Debtor is not in a position to pay the balance to Van Horst, and does not have the capital to fund any further renovations on the building. The Debtor had obtained a reasonable offer for the property from an independent third-party purchaser, after a marketing period of several months. The sale of real property will allow the secured creditor to be in full and will also fully pay all of the remaining creditors. That sale will provide the highest benefit to the bankruptcy estate. The Debtor has prepared and served an expanded notice, that provides creditors and other parties in interest with detailed information concerning the proposed transaction. The Debtor believes that the notice, consistent with Naron & Wagner, is a functional substitute for the adequate information which would otherwise be contained in a disclosure statement were this matter to proceed through confirmation of a plan, rather than by approval of the purchase offer from Buyer. The scheduled value of the Property is $800,000.00, which is based upon the analysis of the market conditions by the real estate broker who listed the property as well as certain appraisals done at the request of the Superior Court Judicial District of Tolland, at Rockville. The purchaser of the Property is Spiro Muka, an individual with no connection to the Debtor or to any party-in-interest. The purchase price for the property will be $599,000.00, payable at settlement. The sale is not made to an insider. The property will not be auctioned Closing will take place within a reasonable period after the approval of the Motion to Sell. The buyer wishes to close on the property not later than February 10, 2026. A good faith deposit in the amount of $10,000.00 has been delivered to Pioneer CRE, the listing agent for the sale. There are no interim arrangements with the proposed Purchaser. The sale proceeds will be paid as necessary at the closing, i.e., payments will be made to settlement costs and fees for closing on the property and then funds will be paid to the secured creditor as necessary to release the lien on the property, and then funds will be paid to the Town of Vernon for outstanding real estate taxes and then the balance will be paid to the unsecured creditors based upon payoff statements obtained as part of the closing on the sale. About Black Canoe LLC Black Canoe, LLC is a limited liability company. Black Canoe, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 25-21912) on December 20, 2025. In its petition, the Debtor listed up to $1 million in both assets and liabilities. Honorable Bankruptcy Judge Michelle M. Harner handles the case. The Debtor is represented by Geri Lyons Chase, Esq., at the Law Office of Geri Lyons Chase. BLACK SHEEP: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: The Black Sheep, Inc. d/b/a The Black Sheep Online, Inc. 1812 N Rockwell St, Unit D Chicago, IL 60647 Business Description: The Black Sheep, Inc., based in Illinois, operates as a marketing agency specializing in connecting brands with college students across the United States through services including market research, field marketing, influencer campaigns, and paid advertising. Founded in 2008 by Atish Doshi as a satirical college newspaper at the University of Illinois, the Company has expanded its network of student contributors and evolved its content to serve businesses and student housing properties nationwide. Chapter 11 Petition Date: January 22, 2026 Court: United States Bankruptcy Court Northern District of Illinois Case No.: 26-01105 Debtor's Counsel: Adam P. Silverman, Esq. ADELMAN & GETTLEMAN, LTD. 53 West Jackson Boulevard Suite 1050 Chicago, IL 60604 Tel: 312-435-1050 Email: asilverman@ag-ltd.com Total Assets as of November 30, 2025: $544,025 Total Liabilities as of November 30, 2025: $1,608,323 The petition was signed by Atish Doshi as president and CEO. A copy of the Debtor's list of 20 largest unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/E327XJA/The_Black_Sheep_Inc__ilnbke-26-01105__0004.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/OT52UII/The_Black_Sheep_Inc__ilnbke-26-01105__0001.0.pdf?mcid=tGE4TAMA BOREN INC: Court Extends Cash Collateral Access to Feb. 18 ---------------------------------------------------------- Boren, Inc. received another extension from the U.S. Bankruptcy Court for the Middle District of Tennessee to use cash collateral to fund operations. The court issued a fourth interim order authorizing the Debtor to use cash collateral until the final hearing in accordance with its updated budget, subject to a 10% variance. The budget covers late January through February, showing beginning cash balances, projected weekly deposits of $37,250, and operating expenses such as payroll, rent, advertising, cost of goods sold, utilities, equipment leases, insurance, professional fees, and trustee and attorney fees. It reflects fluctuating net cash flow and ending balances, underscoring the need for continued access to cash collateral to fund ongoing operations while the Debtor proceeds toward reorganization. As adequate protection, lien holders will receive replacement liens on the Debtor's post-petition property and proceeds thereof (excluding avoidance claims), with the same priority and extent as their pre-bankruptcy liens. A final is set for February 18. The fourth interim order is available at https://is.gd/OC5iwj from PacerMonitor.com. About Boren Inc. Boren, Inc., doing business as Fitness 1440, operates multi-level fitness centers in Nashville, Tennessee, offering 24/7 gym access, swimming pools, saunas, personal training, group fitness classes, and other wellness amenities. It provides membership services with access to multiple locations and specialized fitness equipment. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Case No. 25-04621) on October 31, 2025, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Nelson Boren, Jr., regional manager, signed the petition. Judge Charles M. Walker presides over the case. Michelle L. Spezia, Esq., at Johnson Legal, PLLC represents the Debtor as bankruptcy counsel. BRIGHTLINE TRAINS: Fitch Lowers $2BB PABs to 'CCC', On Watch Neg. ----------------------------------------------------------------- Fitch Ratings has downgraded Brightline Trains Florida LLC's (Brightline/OpCo) $2.219 billion senior secured private activity bonds (PABs) to 'CCC' from 'B', and the rating remains on Rating Watch Negative (RWN). Fitch has also downgraded Brightline East LLC's (BLE) $1.119 billion senior secured taxable notes to 'CC' from 'CCC+', and the rating remains on RWN. RATING RATIONALE The Brightline downgrade to 'CCC' from 'B' reflects substantial credit risk and very low margin of safety as liquidity has depleted more quickly than expected since mid-2025, which has elevated default risk by 1H2027. Although ridership and revenue have grown year over year, the ramp-up continues to fall short of Fitch's cases. The addition of new train cars to address capacity constraints has not alleviated concerns that demand will rise sufficiently and quickly enough to drive higher ridership and fare revenue to cover near-term debt service. There remains a high degree of uncertainty around the trajectory of the ramp-up and the timing of cash flow stabilization. A slower ramp-up resulted in insufficient operational cash flow to cover the January 2026 debt service payment, which Brightline covered by drawing down a material amount from its debt service reserve account (DSRA). Brightline has not provided Fitch with a detailed cash flow assessment for 2026. Fitch believes that Brightline will have sufficient liquidity to cover its July 2026 debt service payment, after which time the DSRA is likely to be fully drawn, absent greater-than-expected operating cash flow generation in 1H2025. In addition, Brightline's $45 million revolver is due in May 2026; if the maturity is not extended one additional year as allowed under the revolver agreement, Brightline is required to pay the outstanding balance at maturity - but lacks funds to do so. If Brightline extends the maturity one additional year, it is required to make monthly deposits for 12 months to fully defease the revolver balance by maturity in May 2027, with any failure to do so resulting in an event of default under the revolver agreement, but not a cross-default for the OpCo debt as the cross-default threshold is $100 million. The BLE downgrade reflects the heightened probability of very near-term default, with non-payment beginning in January 2027. As BLE is not likely to receive distributions from Opco in 2026, BLE will have to draw on the remaining ramp-up and pre-funded interest reserves to cover near-term financial obligations. However, Fitch believes these reserves will be insufficient to meet the January 2027 debt service payment. BLE is rated below OpCo given its subordinated position in the cash flow waterfall, greater refinancing risk, and the low likelihood that OpCo will satisfy distribution tests at levels sufficient to cover BLE interest. Management represents to Fitch to be pursuing several action plans to enhance reserves available for funding operations and adding debt repayment protection, including additional debt borrowings and/or third-party equity funding. KEY RATING DRIVERS Revenue Risk - Volume - Weaker Favorable Market, Limited History (Revenue Risk - Volume: Weaker): Brightline rail service offers an alternative inter-city transportation mode in the increasingly congested but economically diverse and expanding south/central Florida markets. While Brightline compares favorably in terms of travel speed, comfort, and reliability, competition from driving and existing low-cost rail alternatives for the short-distance segment will likely limit its market capture. The ramp-up has proven to be difficult and is comparatively longer for Brightline than for other new transportation development projects. Ridership data to Orlando is limited, complicating the validation of consultants' long-term forecasts, and initial fares are high relative to competing alternatives particularly to Orlando. Positively, Brightline benefits from some market diversity, drawing from southern and mid-Florida markets and targeting a mix of business and leisure travelers. Ancillary services such as parking, concessions, and corporate sponsorships provide diversification of revenue sources. Revenue Risk - Price - Stronger Independent Pricing Control (Revenue Risk - Price: Stronger): Brightline has an unencumbered ability to set and adjust rates, independent of legislative or political interference. Current rail fares are dynamic with the goal of achieving high ridership levels, varying depending on travel date, time, distance and utilization. Fitch notes that Brightline's proposed fares are high compared with other transportation modes, including the publicly funded Tri-Rail service. Infrastructure Dev. & Renewal - Midrange New Facilities, Expansion Likely (Infrastructure Development and Renewal: Midrange): Infrastructure renewal risk is low for facilities currently in service, reflecting Brightline's recent completion. Long-term maintenance agreements with Florida East Coast Rail for rail infrastructure as well as a 30-year fixed price agreement for rolling stock with Siemens Mobility support upkeep and reinvestment. Brightline plans to budget annually from cashflow to cover added rolling stock and other capex requirements. Brightline is currently evaluating expansion of service in the Orlando and Tampa regions. While such a project will require additional capital to fund construction and operational costs, this future project will be fully separate from a security and pledge standpoint under a separate affiliate of parent company AAF Operations Holidings LLC. Debt Structure - 1 - Stronger; Debt Structure - 2 - Weaker Conservative Structural Terms; Amortizing Debt: The OpCo revenue bonds are secured by a senior lien standing on Brightline's net revenues with the debt to be fixed rate and fully amortizing through the 2053 final maturity. Following a flat, interest-only payment period through 2032, annual debt service has an escalating payment profile for the remaining tenor, requiring revenue growth over the long term. The original structure included an equity distribution test of 1.30x DSCR (on both trailing 12-month and projected bases), a 12-month debt service reserve fund, and dedicated ramp-up and operating reserves sized at $175 million and $100 million, respectively, to provide additional protection during the buildout and early operations phases. While these features supported credit quality initially, the ramp-up and operating reserves have been effectively depleted, leaving only limited remaining protection beyond the 12-month debt service reserve. As a result, the safety buffer has narrowed materially, increasing reliance on ongoing operating performance and cash generation to meet escalating debt service. Additional debt remains subject to rating affirmation by the agencies that rated the original transaction, offering some bondholder protection should the project pursue regearing for potential expansion in the future. Structurally Subordinate; Refinance Risk: The BLE debt is interest-only with a bullet maturity in 2030, exposing lenders to refinance risk. The debt is structurally subordinate to Brightline debt, since repayment of the parent debt is dependent on ongoing cash flow distributions from Brightline to BLE subject to a 1.3x senior and 1.1x total debt service coverage ratio (DSCR) distribution test at Brightline. Brightline retains the ability to issue future OpCo debt obligations, which can further subordinate BLE's position for funds to service its debt. BLE level required reserves include a debt service reserve funded equal to three months of interest and a ramp-up reserve account equal to over two years of interest. Additional Brightline debt is subject to a rating affirmation by the agencies rating the original transaction at the BLE level if BLE debt is outstanding. OpCo does not guarantee BLE's debt, and a BLE debt default does not cross default to OpCo's debt. ESG Factors: Limited Historical Financial Transparency Historically, the issuer has provided incomplete or delayed financial information, and omitted key details on liquidity, and cash flow, with gaps around project reserve balances and the use of funds from various reserve accounts. This opacity heightens uncertainty around operating trends and funding plans, and increases the risk of adverse surprises, making transparency a significant driver of the rating. Enhanced, consistent reporting on reserve levels, sources and uses, and forward-looking reserve sufficiency would be required to mitigate this risk. Financial Profile Preliminary fiscal 2025 financial performance is below Fitch's prior rating case assumptions, with revenue approximately 3% below and expenses largely in line with Fitch's assumptions, when excluding grant funds that offset certain expenses. This performance resulted in an estimated operating loss, excluding grant funds, slightly more than Fitch's prior rating case expectations. Including R&E grant funds, the operating loss is below Fitch's prior expectations. Given the heightened default risk at both OpCo and BLE, Fitch's financial analysis focuses on Fitch's near-term estimates and liquidity. Under Fitch's rating case assumptions, OpCo's ramp up reserve is fully drawn down by the end of 2026 and results in the need for DSRA draws to meet debt service. OpCo does not meet its restricted payment test, resulting in a lock up of distributions to BLE. Following the drawdowns of the prefunded BLE reserves for debt servicing by the end of 2026, BLE is unable to meet its debt service payment in January 2027, resulting in default. Similarly, absent improvements in a ridership ramp-up and/or external support, OpCo will have limited remaining resources to meet its 2027 debt service obligations, with default highly likely by mid-2027. PEER GROUP Fitch does not publicly rate any rail services project peers relevant to Brightline. Other rated rail services within Fitch's global portfolio have been operational for a number of years with tested demand and stable ridership, which removes the inherent risk seen in Brightline's service and accounts for the higher ratings. Publicly rated European rail lines include the High-Speed Rail Finance (1) PLC (HS1; A-/Stable) and Channel Link Enterprise Finance plc (CLEF; BBB/Stable). Both HS1 and CLEF share exposure to Eurostar and have been operational for nearly three decades with stabilized passenger levels and clearer volume and market share certainty leading to investment grade ratings. CLEF is directly exposed to Eurostar passenger volumes with volume risk assessment as 'High-Midrange' due to proven resilience through economic cycles. HS1 is exposed to the number of train paths, which are inherently less volatile and benefits also from having 60% of its revenues supported by the UK government via underpinned availability payments leading to Fitch's assessment of volume risk as 'Stronger'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- Continuation of monthly operational cash flow losses without liquidity enhancements by management to offset these losses; -- Failure by management to provide additional liquidity at the OpCo level, leading to an inability to meet near-term operational and debt service obligations; -- Inability to raise equity to pay down BLE debt in the next six months; -- Announcement of a distressed debt exchange. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- Fitch could remove the RWN if management executes plans to provide additional liquidity at the OpCo level, and ridership and revenue improve to levels that provide sufficient funds to meet operating and debt service requirements over the next 12 months; -- An upgrade of the OpCo and BLE ratings is unlikely until the company addresses short-term refinancing needs and liquidity concerns. SECURITY Senior Debt: Security for the private activity bonds (PABs) consists of all funds deposited from time to time in project accounts and a first lien on all collateral, which will include substantially all assets of the borrower including (a) the borrower's mortgaged real property interests, (b) substantially all personal property of the borrower, including rolling stock, project revenues and project accounts, and (c) a pledge of the membership interests in the borrower by its direct parent. BLE Debt: Security for the notes consists of a pledge of the membership interests in BLTF Holdings LLC, the direct owner of the project owner and all other assets of BLE, including substantially all personal property of BLE and reserve accounts once funded from distributions received from the project owner. BUCC ENTERPRISES: Unsecureds Will Get 20% of Claims in Plan ----------------------------------------------------------- Bucc Enterprises, Inc. filed with the U.S. Bankruptcy Court for the Western District of Pennsylvania a Plan of Reorganization for Small Business dated January 14, 2026. The Debtor was established in 2017 to operate a pre-existing Pizza Shop at its location at 670 Franklin St., Clymer, PA 15728. The Debtor acquired the business from a family member who has since passed away. The business was originally operated as a franchisee of Fox's Pizza, but several years ago transitioned to an independent business. Unexpected expenses arising from the acquisition of the business hurt the cash flow of the business operations and ultimately caused this Chapter 11 filing. The Debtor's case was necessitated by economic and business conditions. The Debtor acquired the Pizza Shop from a relative who has since passed away. Unbeknowst to the Debtor, the Debt that was to be paid by the previous owner regarding the operations was not paid and required the Debtor to expend resources to preserve its operations and to take on additional debt. Since that time, the Debtor has stabilized its operations, reduced its payroll obligations and has updated its menu and marketing to improve sales. Class 5 consists of General Unsecured Claims. The claims of this class consist of the following general unsecured claims: Hobart Sales ($600); Kapitus Servicing, Inc. ($44,240.08); and Pennsylvania Dept. of Revenue ($2,824.61). The total amount of this class of creditors is $47,664.69. This class of Creditor will receive a distribution of 20% of their claim as set forth herein. The monthly amount paid to this class is $52.94. Payments will be made quarterly commencing on the Effective Date. This Class is impaired. Class 6 consist of disputed general unsecured claim of Fundworks in the amount of $34,467.69. No payment will be made to this class. To the extent that a claimant is deemed to have a valid claim, they will be treated in accordance with the treatment of Creditor Class 5. Class 8 consists of the Equity ownership of Jeremey and Lisa Taylor. No payments will be made to this class. The Plan will be funded through ongoing revenue generated by continued business operations. The Debtor has restructured its operations and has increased and secured projects to continue to fund its obligations and will continue to seek both commercial and residential projects to ensure ongoing cash flow and profitability to fund this plan. Through reorganization the Debtor will be able to increase available funds to purchase new inventory, equipment and supplies necessary to sustain its operations. The final Plan payment is expected to be paid on March 31, 2031. A full-text copy of the Plan of Reorganization dated January 14, 2026 is available at https://urlcurt.com/u?l=Pz5hAa from PacerMonitor.com at no charge. Counsel to the Debtor: David L. Fuchs, Esq. Fuchs Law Office, LLC 554 Washington Avenue, First Floor Carnegie, PA 15106 Telephone: (412) 223-5404 Facsimile: (412) 223-5406 E-mail: dfuchs@fuchslawoffice.com About Bucc Enterprises Bucc Enterprises, Inc. is a specialty Pizza Shop located in Clymer, Pennsylvania. The Debtor sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 25-70450) on Oct. 17, 2025, listing under $1 million in both assets and liabilities. David L. Fuchs, Esq., at Fuchs Law Office, LLC serves as the Debtor's counsel. BUDDY MAC: To Sell Missouri Stores to National TV Sales for $700K ----------------------------------------------------------------- Buddy Mac Holdings, LLC and its debtor subsidiaries and affiliates seek permission from the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, to sell Missouri Stores, free and clear of liens, claims, interests, and encumbrances, to National TV Sales & Rentals of Missouri Inc. The Debtors also seek approval of the sale on an expedited basis, without bidding procedures or an auction, but subject to any higher or better offers received prior to the Court's entry of a Sale Order. The Debtors request that this Motion be set for hearing on January 27, 2026, at 3:00 p.m. CT. The Debtors submit that the Buyer's offer represents fair value for the Purchased Assets and that expedited consummation of the sale will maximize the value of the Purchased Assets. The Debtors and their non-debtor affiliates rent and sell furniture, electronics, appliances, and other merchandise to customers on a rent-to-own basis. Customers sign rent-to-own contracts with the Debtors and make monthly or weekly payments for merchandise throughout the term of the contract, which is typically between twelve and eighteen months. The purchase price is amortized over the term of contract, and the customer owns the merchandise once all payments are made. Alternatively, customers can stop making payments and return the merchandise at any time. On December 4, 2025, Buddy Mac Holdings, LLC (Buddy Mac Holdings), BMH RTO, LLC (BMH RTO), and 43 subsidiaries of BMH RTO each filed a voluntary petition for relief in this Court under chapter 11 of the Bankruptcy Code. The remaining Debtors (which are Buddy Mac One, LLC, BMH One RE, LLC, BMH 95 RE Caruthersville, LLC, and BMH 96 RE Marion, LLC) each filed voluntary chapter 11 petitions on December 1, 2025. The Company operates 46 rent-to-own stores, 36 of which are operated by Debtors and 14 of which are currently operated by non-debtors. Except for the Debtors' Tyler, Texas store, which is operated by Buddy Mac One, LLC, all the Debtor stores are operated by RTO Subsidiaries. BMH RTO, as borrower, and the RTO Subsidiaries, as guarantors, are parties to a prepetition Loan Agreement with INTRUST Bank, N.A. Phonix RBS LLC acquired the loan and took assignment of the Loan Documents from INTRUST Bank on or about September 2, 2025, and asserts liens on substantially all assets of the RTO Debtors pursuant to the Loan Documents. The Buyer has offered to purchase nine of the Company's Missouri store locations, one of which is currently owned and operated by a non-debtor. The purchase price is $700,000.00, subject to adjustments set forth in the Asset Purchase Agreement, with a 10% holdback for prorated payables after Closing. The Buyer will acquire all customer RTO Agreements for the Missouri Stores and take over the business operations of each Store, including assignment of the property leases and other contracts for all but one of the Stores (Store #632), but Sellers will retain all idle inventory in the Stores. The terms of the proposed Sale can be found at https://urlcurt.com/u?l=ojIYHK The Debtors submit that the Buyer's offer represents fair value for the Purchased Assets and that immediate consummation of the Sale is in the best interests of the Debtors, their estates, and other stakeholders. Cure Costs associated with the Debtors' assumption and assignment of the Property Leases and other Assigned Contracts will be paid by the Buyer and deducted from the Purchase Price. The Debtors seek emergency consideration of this Motion at the omnibus hearing setting on January 27, 2026, at 3:00 p.m., prevailing Central Time, in order to maximize the value of the Sale for the estates. The Debtors understand that Phonix supports the Sale and the Debtors' request for approval on an emergency basis. About Buddy Mac Holdings LLC Buddy Mac Holdings, LLC, together with its affiliates, operates a rent-to-own retail business selling home furnishings, electronics, and appliances, allowing customers to make periodic payments with the option to complete purchase or return the product at any time. The company began its rent-to-own operations in 2014 as a franchisee of Buddy's Home Furnishings and has expanded to operate 47 store locations across Arkansas, Florida, Illinois, Kansas, Missouri, New Mexico, Oklahoma, and Texas. It offers products under franchise agreements, with typical customer contracts spanning 12 to 18 months. Buddy Mac Holdings and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Lead Case No. 25-34839) on December 4, 2025. In the petition signed by William Ian MacDonald, manager, Buddy Mac Holdings disclosed up to $50 million in both assets and liabilities. John J. Kane, Esq., at Kane Russell Coleman Logan PC, represents the Debtors as legal counsel. BULLDOG PURCHASER: Moody's Affirms B3 CFR, Outlook Remains Stable ----------------------------------------------------------------- Moody's Ratings affirmed Bulldog Purchaser Inc.'s (Bay Club) B3 Corporate Family Rating and B3-PD Probability of Default Rating. At the same time, Moody's assigned B3 ratings to the proposed backed senior secured first lien credit facilities, consisting of a $75 million revolving credit facility due 2031 and a $1.150 billion term loan due 2033. Moody's affirmed the B2 ratings on the existing backed senior secured revolving credit facility and backed senior secured term loan and Caa2 rating on the existing backed senior secured second lien term loan and expect to withdraw those instrument ratings at closing of the proposed refinancing. The outlook remains stable. Bay Club expects to utilize the proceeds from its refinancing including the $356.6 million additional amount relative the existing size of the first lien term loan to retire the existing term loan, repay the existing senior secured second lien term loan, fund the cash portion of its near term acquisition pipeline, and cover transaction fees. The refinancing also supports the execution of the planned 2026 acquisitions, which are planned to expand presence in existing markets, including Los Angeles and Seattle, and likely expand into new markets. The acquisitions and refinancing, including the increase in first lien term loan, are credit positive because it has no material impact on leverage given the partial equity-based financing, while also strengthening liquidity by preserving an undrawn revolver and reducing refinancing risk through the extension of maturities. The acquisitions expand the company's scale and geographic diversity and are expected to enhance earnings through improved operational efficiency, stronger operating leverage, and better unit economics at the acquired clubs. Moody's affirmed the existing ratings with a stable outlook because Bay Club continues to generate positive organic revenue growth, leverage remains high and Moody's expects the company to maintain positive free cash flow. The B3 rating on the proposed senior secured first lien revolver and term loan is one notch below the B2 ratings on the company's existing first lien credit facilities. The lower rating reflects the proposed repayment of the senior secured second lien term loan and increase in the size of the first lien credit facility. These changes in the debt structure eliminate the loss-absorption cushion to the now larger first lien credit facility. As a result, the increase in the loss given default (LGD) on the first lien debt leads to lower instrument ratings since the CFR is not changing. RATINGS RATIONALE Bay Club's B3 CFR reflects its high financial leverage, limited free cash flow, modest scale, and geographic concentration in California. The company's aggressive financial policy, including its growth-through-acquisition strategy funded largely by incremental debt, adds execution risk and potential for re-leveraging. The credit profile also reflects the discretionary nature of Bay Club's business, which is subject to cyclical consumer spending downturns, as well as the ongoing member attrition inherent in lifestyle membership-based businesses. However, the rating is supported by Bay Club's affluent membership base, strong brand recognition, and high-quality facilities, services and real estate portfolio owned by the borrower group, which provides underlying asset value and potential liquidity through sale-leaseback transactions. The company continues to show positive earnings momentum through its shared membership model and premium pricing strategy, which has resulted in single-digit same-store revenue growth and the ability to pass on price increases without resulting in an elevated attrition rate. Additionally, Bay Club is expanding its customer base to include younger demographics. The credit profile also takes into account instances of sponsor support. Bay Club received equity injections in 2022 and 2023 from its sponsor, KKR, demonstrating the owner's commitment to provide liquidity when required and fund strategic needs, including acquisitions and capital expenditures. Furthermore, partial equity financing of the latest 2025 acquisitions have limited the effect on leverage. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The stable outlook reflects Moody's expectations that Bay Club's leverage will moderately decline to the mid-5x range over the next 12 to 18 months, supported by continued earnings growth and contributions from recent acquisitions. Moody's also expects the company to maintain adequate liquidity, with access to a $75 million revolver that expires 2031 and projected positive free cash flow between $35 and $55 million. The ratings could be upgraded if an increase in membership and earnings results in lower leverage as well as sustained and comfortably positive free cash flow generation. The company would also need to increase scale and geographic diversity, integrate acquisitions with no operational disruptions, maintain good liquidity, sustain debt-to-EBITDA leverage at a level approaching 4.5x or lower, and sustain EBITDA less capital spending to interest above 2.0x. Ratings could be downgraded if membership levels and earnings do not improve, the company does not sustain good facility reinvestment, free cash flow is negative, or EBITDA less capital spending to interest is below 1.0x. A deterioration in liquidity or debt-financed acquisitions that sustain high leverage could also lead to a downgrade. Marketing terms for the new credit facilities (final terms may differ materially) include the following: Incremental pari passu debt capacity up to the greater of $200 million and 100% of consolidated EBITDA for the most recent four fiscal quarters, plus available amounts under the general debt basket, plus 100% of available restricted payment capacity, plus unlimited amounts subject to the greater of 4.75x first-lien net secured leverage ratio and leverage neutral incurrence. There is an inside maturity sublimit up to the greater of a fixed dollar amount and 100% of consolidated EBITDA. The credit agreement is expected to include "J Crew", "Serta" and "Chewy" provisions. Amounts up to 100% of unused restricted payment capacity and the builder basket may be reallocated to incur debt. The capital structure is portable to a permitted acquiror, subject to certain conditions. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. Bay Club is a membership-based hospitality company. It operates 41 clubs across 10 campuses on the west coast of the United States (in the states of California, Oregon and Washington). The company's clubs offer a blend of fitness, sports, leisure, and hospitality amenities, including golf, tennis, aquatics, pickleball, and wellness services. KKR (Kohlberg Kravis Roberts & Co.) acquired the company in 2018. The company generates annual revenue of $398 million of the last twelve months ending October 30, 2025. CARMEN'S CUBAN: Gets Interim OK to Use Cash Collateral ------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, entered an interim order authorizing Carmen's Cuban Cafe, Inc. to use cash collateral to fund operations. Under the interim order, the Debtor is authorized to use cash collateral in accordance with an approved budget, with spending flexibility of up to 10% over budget. In addition, Carmen's Cuban Cafe must operate through a designated debtor-in-possession account, provide monthly bank statements, and refrain from non-ordinary course asset dispositions without court approval. Although the U.S. Small Business Administration has not yet consented to cash collateral use, the Debtor demonstrated the need to access funds to continue operations and preserve going-concern value. At filing, the Debtor held approximately $273,276.53 in cash and unencumbered personal property valued at about $29,500. As adequate protection, the SBA will be granted a post-petition replacement lien on cash and inventory, with the same priority and extent as its pre-bankruptcy lien. In addition, the Debtor must make monthly payments of $2,201.63 to the SBA, beginning this month, consistent with the proposed treatment under the Debtor's Chapter 11 plan of reorganization. The authorization terminates upon cessation of operations or default under the order. A further hearing is scheduled for February 12. The interim order is available at https://is.gd/Qowjur from PacerMonitor.com. Carmen's Cuban Cafe is a North Carolina corporation that has operated a restaurant and bar in Morrisville for over 21 years and seeks to reorganize through a consensual Chapter 11 plan by stabilizing operations and reducing cash flow pressures. At least one creditor, the SBA, may hold a security interest in the Debtor's cash collateral pursuant to security agreements and UCC-1 filings from 2020 and 2021. Although the SBA has not yet consented to the use of cash collateral, the Debtor states that, as of the petition date, it held approximately $273,276in cash (now transferred into a debtor-in-possession account) and about $29,500 in unencumbered personal property. The Debtor asserts these funds are essential to continue operations and preserve its going-concern value. About Carmen's Cuban Cafe Inc. Carmen's Cuban Cafe, Inc. operates a restaurant and bar in Morrisville, North Carolina, specializing in Cuban cuisine. The Company offers a menu of traditional Cuban dishes, including entrees, appetizers, soups, salads, desserts, and children's meals, and serves local customers through on-premise dining. Carmen's Cuban Cafe sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 26-00147) on January 13, 2026, listing $303,776 in total assets and $1,454,272 in total liabilities. Ali S. Sama, president of Carmen's Cuban Cafe, signed the petition. Judge Pamela W. McAfee oversees the case. Danny Bradford, Esq., at Paul D. Bradford, PLLC, represents the Debtor as legal counsel. CHANNELVIEW HOTEL: Must File Schedules & Statements by Feb. 19 -------------------------------------------------------------- Judge Jeffrey P. Norman of the United States Bankruptcy Court for the Southern District of Texas granted Channelview Hotel Group, LP's emergency motion to extend the deadline to file schedules and statements of financial affairs in its bankruptcy case. The Court finds that cause exists to grant an extension. The deadline for the Debtor to file schedules and statements of financial affairs is extended through February 19. The Debtor is Texas limited partnership, formed in December 2015 for the sole purpose of acquiring, building, owning and operating the hotel known as "Comfort Inn" located at 15813 2nd Street, Channelview, Texas, 77530 Harris County, Texas. The Debtor commenced the bankruptcy case due to severe liquidity constraints stemming from its lender posting the property for foreclosure. These disputes, and the attendant costs, have materially impacted the Debtor's financial position. The already precarious situation was further exacerbated by unforeseen operational disruptions and a decline in room rates collectively intensifying the strain on the Debtor's cash flow and jeopardizing their overall financial viability. These circumstances have left the Debtor with minimal cash reserves to sustain operations, necessitating the filing of this Chapter 11 bankruptcy case. Through the Chapter 11 process, the Debtor aims to restructure its prepetition debt and optimize operations under a plan of reorganization. Without the protections and opportunities afforded by Chapter 11, the Debtor faces the imminent risk of ceasing operations and undergoing liquidation. A copy of the Debtor's Motion dated January 15, 2026, is available at https://urlcurt.com/u?l=xs3OBN from PacerMonitor.com. A copy of the Court's Order dated January 15, 2026, is available at https://urlcurt.com/u?l=1pN2yN from PacerMonitor.com. Proposed Attorneys for Channelview Hotel Group, LP: Jason D. Kraus, Esq. THE KRAUS LAW FIRM 19500 State Hwy 249, Ste. 350, 3rd Floor Houston, TX 77070 Telephone: (281) 781-8677 Facsimile: (281) 840-5611 E-mail: jdk@krausattorneys.com About Channelview Hotel Group, LP Channelview Hotel Group, LP is a single-asset real estate entity that owns a hotel property in Channelview, Texas, and operates in the real estate services sector. Channelview Hotel Group, LP sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex., Case No. 26-30098) on January 5, 2026. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Honorable Bankruptcy Judge Jeffrey P. Norman handles the case. Jason D. Kraus, Esq., at The Kraus Law Firm, represents the Debtor as legal counsel. CK BUILDERS: To Sell 318 Elks Drive Property to C. & C. Castro -------------------------------------------------------------- CK Builders LLC seeks permission from the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division, to sell Property, free and clear of liens, claims, interests, and encumbrances. The Debtor's Property is located at 318 Elks Drive, San Antonio, TX 78211. The Bexar Appraisal District values the real property at $130,0000 for 2025. The Debtor scheduled the real property with a value of $175,000 in the Schedules fined the case. The Debtor believes that the proposed sale of the real property to Charles and Catalina Castro for the cash sales price of $147,000 represents a fair price for the real property. The sale is subject to a third party financing addendum in the amount of $103,250. The Debtor has cash in the amount of $44,250 as part of the sale. The Debtor has been using its best efforts to sell the property, which will generate cash the Debtor needs going forward with its efforts to pay its creditors through a Subchapter V Chapter 11 Plan. The Debtor believes that the proposed sale of the property generates a reasonable value based upon the asset proposed to be sold and its marketability/condition under the circumstances of the case. The real property is not subject to a mortgage loan to any lender. The property is subject to ad valorem taxes to Bexar County. The Debtor will use the sales proceeds to assist it with its payment obligations under the terms of its confirmed Plan. The Debtor has agreed to make a partial payment to Citizens State Bank in the amount of $40,000 tp pay down its liability owing to Citizens State Bank. The Debtor requests that the sale of the property to Charles and Catarina Castro be free and clear of all liens, claims, and encumbrances. About About CK Builders LLC CK Builders, LLC provides home improvement and general contracting services in the Pipe Creek and San Antonio areas of Texas. The Company holds a home improvement contractor license and has completed various residential remodeling and repair projects. CK Builders sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-51458) on June 30, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and up to $50,000 in liabilities. Judge Craig A. Gargotta handles the case. The Debtor is represented by William R. Davis, Jr., at Langley & Banack, Inc. COAST TO COAST: Gets Interim OK to Use Cash Collateral ------------------------------------------------------ Coast to Coast Palm, LLC received interim approval from the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, to use cash collateral. Under the interim order, the Debtor is authorized to use cash collateral for court-approved payments; the budgeted expenses, plus up to a 10% variance per line item; and additional amounts with approval by lenders. This authorization will continue until further order of the court. Numerous lenders and funding companies may hold liens on the Debtor's assets such as equipment, accounts, receivables, inventory and deposit accounts. These lenders include Advance Service Group, Ascentium Capital, Broadway Advance, Commercial Industrial Finance, Corporation Service Company, CT Corporation System, Dynamic Equities Funding, FCS Advisors, Ilend Advance, In Advance, Lend Bug, Newtek Bank, Secured Lender Solutions, Swiss Fund, and the U.S. Small Business Administration. As adequate protection, lenders with a security interest in cash collateral will be granted a perfected post-petition lien on the collateral, with the same validity, priority and extent as their pre-bankruptcy liens. A court hearing is set for February 10. The order is available at https://is.gd/dUFpsy from PacerMonitor.com. About Coast to Coast Palm Coast to Coast Palm, LLC, doing business as Coast to Coast Linen, provides commercial linen and textile rental and laundering services, supplying items such as uniforms and linens to business customers. The company operates from West Palm Beach, Florida, serving clients in the surrounding South Florida region. It operates within the industrial laundry and linen supply services industry. Coast to Coast Palm sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 26-10247) on January 12, 2026. At the time of the filing, the Debtor listed between $100,001 and $500,000 in assets and between $1 million and $10 million in liabilities. Judge Mindy A. Mora oversees the case. Craig I. Kelley, Esq., at Kelley Kaplan Delaney & Eller, PLLC is the Debtor's legal counsel. COLUMBUS MCKINNON: Moody's Rates New $1.225BB Secured Notes 'Ba3' ----------------------------------------------------------------- Moody's Ratings assigned a Ba3 rating to Columbus McKinnon Corporation's (Columbus McKinnon) new $1.225 billion senior secured notes. The Ba3 corporate family rating, Ba3-PD Probability of Default Rating, existing Ba2 senior secured first lien bank credit facility rating, and the negative outlook are unaffected by the debt issuance. The SGL-1 speculative grade liquidity rating is also unchanged. Moody's will withdraw the Ba2 rating on the existing senior secured credit facility upon its upcoming termination. The company will use the proceeds from the senior secured notes, the company's recently announced senior secured credit facility and previously announced preferred equity to fund the $2.7 billion acquisition of Kito Crosby and refinance its existing credit facility. Additionally, Columbus McKinnon plans to raise approximately $210 million from the divestiture of certain businesses. It will retire outstandings under the term loan with the net proceeds of approximately $160 million, after taxes and transaction costs. There is the potential for an additional $25 million in proceeds pursuant to earnout provisions in these disposals. The acquisition of Kito Crosby will increase debt-to-EBITDA to around 6x on a Moodys adjusted basis, including expected cost synergies. It will also approximately double Columbus McKinnon's revenue and meaningfully increase EBITA margin. Moody's believes the company will generate strong free cash flow and utilize this to reduce debt-to-EBITDA to around 4.5x through 2027. RATINGS RATIONALE The Ba3 CFR reflects Columbus McKinnon's favorable market position and strong brands in its core lifting business segment for material handling. Columbus McKinnon's diverse product portfolio ranges from hoists, actuators, rigging tools and digital power control systems to precision conveyor systems and related products. The inclusion of Kito Crosby's business will give Columbus McKinnon a leading position in lifting and securement consumables as well. Further benefitting the company are secular macro trends including industrial automation, labor shortages, and nearshoring. The ratings will be constrained by the company's high leverage of around 6x at close of the Kito Crosby acquisition and asset divestitures. The company's relatively modest scale when compared to large, diversified manufacturers and exposure to certain cyclical end markets are also key credit constraints. Additionally, the company is exposed to ongoing global macroeconomic headwinds including inflation, foreign exchange volatility, tariffs and supply chain pressures. Moody's expects Columbus McKinnon will maintain very good liquidity. Moody's expects the company to have the vast majority of its new $500 million revolver available at close of the transaction. Moody's projects annual free cash flow of $140 to $170 million over the next few years. The negative outlook reflects the integration risk associated with the Kito Crosby acquisition and Moody's expectations that leverage will remain high over the next 12-18 months. Moody's expects debt-to-EBITDA to decline to below 4.0x over the next 2 to 3 years, with EBITA margin improving to around 20% as synergies from the Kito Crosby transaction are realized. The outlook also reflects Moody's expectations of ongoing positive free cash flow of at least $140 million annually. To achieve these metrics, the company will need to navigate near-term market risks including tariffs, slowing economies, and end market cyclicality. At the same time, Columbus McKinnon will be working to integrate its largest acquisition to-date, divesting a fairly integrated business line, meeting performance goals to achieve future earnout payments, and realizing its expected cost synergies. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The ratings of Columbus McKinnon could be downgraded if debt-to-EBITDA is sustained above 4.5x, free cash flow to debt is at or below 5%, or EBITA-to-Interest Expense is sustained below 2.0x. A downgrade could also be prompted if the company adopts an increasingly aggressive financial policy or executes another large acquisition prior to reducing leverage. Factors that could lead to an upgrade include a material increase in scale while achieving organic revenue growth, debt-to-EBITDA sustained below 3.5x or EBITA-to-Interest Expense sustained above 3.0x. The principal methodology used in this rating was Manufacturing published in September 2025. Columbus McKinnon Corporation, headquartered in Charlotte, NC, is a publicly traded diversified industrial manufacturer with operations in Lifting, Linear Motion, Automation and Precision Conveyance platforms. Pro forma revenue for the twelve months ended September 30, 2025 totaled $2.0 billion. CTF CHICAGO: Court Extends Cash Collateral Access to Feb. 19 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division extended CTF Chicago, Inc.'s authority to use cash collateral through February 19. The court issued its 15th interim order authorizing the Debtor to use the cash collateral of Wintrust Bank, a pre-bankruptcy secured lender, to pay the expenses set forth in its budget. The budget shows total operating disbursements of $128,336 for the interim period. Wintrust Bank holds a senior lien on the Debtor's assets valued at $781,571.93, with a subordinate lien by the U.S. Small Business Administration. As protection, Wintrust Bank was granted a replacement lien on substantially all of the Debtor's assets, including cash collateral equivalents, cash and accounts receivable, with the same validity and extent as its pre-bankruptcy lien. In addition, Wintrust Bank was granted an administrative expense claim under Section 507(b) of the Bankruptcy Code, subordinate only to the administrative claim of the Subchapter V trustee. The next hearing is scheduled for February 19. Wintrust Bank has a senior valid blanket lien on assets of the Debtor as of the petition date and the cash proceeds thereof. It holds a senior security interest in all the assets of the Debtor by way of a valid lien duly filed of which the amount due and owing totals no less than $781,571.93. About CTF Chicago CTF Chicago, Inc. operates within a framework that requires substantial capital and resources. The company is structured to provide specific services or products, likely in a competitive market, given its presence in Chicago. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-15580) with up to $50,000 in assets and up to $10 million in liabilities. Charles Graff, managing member, signed the petition. Judge Janet S. Baer oversees the case. The Debtor is represented by Richard G. Larsen, Esq., at Springer Larsen, LLC. Wintrust Bank, as lender, is represented by: Andrew H. Eres, Esq. Dickinson Wright PLLC 55 W. Monroe, Suite 1200 Chicago, IL 60603 Tel: 312-377-7891 aeres@dickinson-wright.com DARDEN ENTERPRISES: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Darden Enterprises, LLC 2716 Ridgewood Road Atlanta GA 30327 Business Description: Darden Enterprises, LLC provides services related to real estate, including property management, real estate appraisal, and other support services. Chapter 11 Petition Date: January 22, 2026 Court: United States Bankruptcy Court Northern District of Georgia Case No.: 26-50933 Debtor's Counsel: G. Frank Nason, IV, Esq. LAMBERTH, CIFELLI, ELLIS & NASON, P.A. 6000 Lake Forrest Drive, NW Ste. 290 Atlanta, GA 30328 Tel: 404-262-7373 Email: fnason@lcenlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Patricia G. Darden as manager. 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/QOZEUUA/Darden_Enterprises_LLC__ganbke-26-50933__0001.0.pdf?mcid=tGE4TAMA DAVIS PROPERTY: Rental Income & Sale Proceeds to Fund Plan ---------------------------------------------------------- Davis Property Management Group, LLC filed with the U.S. Bankruptcy Court for the Southern District of Florida a Disclosure Statement describing Chapter 11 Plan dated January 15, 2026. The Debtor is a corporation that owns property located at 925 NW 121st St, Miami, FL (the "Property"). The principals, Jerome Davis, Jamaine Davis, and Jovonne Davis (collectively, the "principals"), inherited multiple properties from their father. During the course of the probate, the principals' sibling contested the will. The principals hired the law firm of Therrel Baisden, LLP. During the course of the litigation, the principals incurred substantial attorneys' fees. The law firm then sued the principals and the Debtor for its fees. As of the filing of the case, the fees have increased to $203,917.31. Being unable to pay the attorneys' fees in accordance with the terms of the agreement, the Debtor needed to file bankruptcy to avoid the Property being foreclosed. Since the filing, the Debtor has generated funds as a short-term rental property. Most of the income is generated from Air BNB. The Debtor is also taking steps to convert the property to Section 8 housing. If successful, this will guarantee an income of $3,800 per month. The principals are jointly and severally liable with the Debtor on the amount owed to the attorney. To help satisfy the debt, Jamaine Davis has placed the Augusta property on the market. Once the Augusta property sells, she expects to be able to pay approximately $100,000 towards the joint debt. The Debtor's ability to fully fund the plan and make payments is dependent on its ability to rent the Property and the co-debt, Jamaine Davis, being able to sell the Augusta property. Class 3 consists of general unsecured creditors. The general unsecured claims total approximately $5,010.00. This claim is filed by the IRS for unfiled returns. To the extent the debt remains due after the returns are filed, the Debtor will pay $101.58 for 60 months in full satisfaction of this claim. The payment includes 8% interest. This class is impaired. The plan will be funded by the income of the Debtor. The Plan of Reorganization is deemed by the Debtor to be feasible. A full-text copy of the Disclosure Statement dated January 15, 2026 is available at https://urlcurt.com/u?l=k8Dnv1 from PacerMonitor.com at no charge. Counsel to the Debtor: Brian K. McMahon, Esq. Brian K. McMahon, PA 1401 Forum Way, Suite 730 West Palm Beach, FL 33401 Tel: (561) 478-2500 Fax: (561) 478-3111 Email: briankmcmahon@gmail.com About Davis Property Management Group, LLC Davis Property Management Group, LLC is a corporation that owns property located at 925 NW 121st St, Miami, FL (the "Property"). The Debtor sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-21726) on October 3, 2025, listing $100,001 to $500,000 in both assets and liabilities. Judge Laurel M Isicoff presides over the case. The Debtor tapped Brian K. McMahon PA as counsel. DIFONZO HOLDINGS: Unsecureds Will Get 0.72% of Claims over 5 Years ------------------------------------------------------------------ DiFonzo Holdings, LLC, submitted a Post-Confirmation Amended Plan of Reorganization dated January 14, 2026. The Debtor manage and operate a women's apparel brand with brick and-mortar, e-commerce, and wholesale sales channels business. This Plan proposes to pay creditors from future income by continuing operations and reorganizing its current debts. The Court confirmed the Debtor's Chapter 11, Subchapter V Plan of Reorganization under Section 1191(b) on June 2, 2025. The Court closed the case on August 25, 2025. It soon became apparent that Debtor did not have sufficient working capital to purchase inventory needed to generate the revenue needed for plan payments under the confirmed plan, in large part due to recently imposed tariffs and lingering uncertainty regarding the state of the economy. Debtor began seeking post-confirmation financing, and will be obtaining a line of credit. The line of credit will provide sufficient working capital to purchase inventory sufficient to generate revenue required for plan payments. The Debtor manages and operates a women's apparel brand with brick-and-mortar, ecommerce, and wholesale sales channels business. DiFonzo Holdings, LLC’s assets include its accounts receivable and cash on hand, office furniture, deposits, vehicle and inventory/raw materials. There are fully secured creditors as to this property based on the liquidation analysis and UCC filings. Any secured creditor not treated in this Plan as fully secured are therefore under secured. The Debtor will continue operating the business. The Debtor's Plan will break the existing claims into six classes of Claimants. These claimants will receive cash repayments over a period of time beginning on or after the Effective Date. Class 5 consists of Allowed Unsecured Claims. All allowed unsecured creditors shall receive a pro rata distribution at zero percent per annum over the next five years beginning not later than the 1st day of the first full calendar month following 30 days after the effective date of the plan and continuing every year thereafter on a monthly basis at 0.00% per annum. The Debtor will distribute $53,950.00 to the general allowed unsecured creditor pool over the 5-year term of the plan, includes the undersecured claim portions. The Debtor's General Allowed Unsecured Claimants will receive 0.72% of their allowed claims under this plan. The allowed unsecured claims total $7,422,538.98. This Class is impaired Class 6 consists of Equity Interest Holders (Current Owners). The current owners will receive no payments under the Plan; however, they will be allowed to retain ownership in the Debtor. Class 6 Claimants are not impaired under the Plan. The Debtor anticipate the continued operations of the business to fund the Plan. A full-text copy of the Amended Plan dated January 14, 2026 is available at https://urlcurt.com/u?l=DeFMlK from PacerMonitor.com at no charge. Counsel to the Debtor: Robert C. Lane, Esq. Joshua D. Gordon, Esq. The Lane Law Firm, PLLC 6200 Savoy, Suite 1150 Houston, TX 77036 Tel: (713) 595-8200 Fax: (713) 595-8201 Email: notifications@lanelaw.com Joshua.gordon@lanelaw.com About Difonzo Holdings DiFonzo Holdings, LLC operates a women's apparel brand with brick and-mortar, e-commerce, and wholesale sales channels business in Dallas, TX. The Debtor filed its voluntary petition for Chapter 11 protection (Bankr. N.D. Tex. Case No. 24-31800) on June 20, 2024, listing $411,964 in assets and $7,285,274 in liabilities. Robert DiFonzo as owner, signed the petition. Judge Scott W. Everett oversees the case. THE LANE LAW FIRM serves as the Debtor's legal counsel. E. GLUCK CORP: To Sell Membership Interest to WITHit Holdings ------------------------------------------------------------- E. Gluck Corporation seeks permission from the U.S. Bankruptcy Court for the Southern District of New York to sell 51% of its membership interest in WIThit Holdings LLC, free and clear of liens, claims, interests, and encumbrances, to WITHit's Founders. WITHit was acquired by the Debtor from the Founders in 2021. WITHit has always been a closely-held joint-venture with a strong personal services component. Though the Debtor has been mindful from the outset of the case that a traditional public bankruptcy auction sale of its interests in WITHit is not a viable pathway to monetize the asset for the benefit of creditors, the Debtor has been aware that it was still possible for WITHit to provide value to the estate, even though the stalking horse for the Legacy Sale was not interested in acquiring WITHit. The Debtor also considered whether it may be possible to buy out the Founders' position independent of the Legacy Sale. Ultimately, the pathway that unequivocally yields the best value for the estate is for the Debtor to sell its majority membership interests to the Founders under the terms of the proposed Majority Unit Purchase Agreement. The Debtor is requesting this private sale process to be approved on an expedited basis so that the closing can occur with reasonable proximity to the closing of the Legacy Sale. WITHit currently processes its customers' orders through a Master Services Agreement with the Debtor whereby the Debtor is responsible for receiving WITHit merchandise into its warehouse, using the enterprise resource planning system to receive customer purchase orders, allocate and ship those orders with carton content, UCC labels (that differ by retailer), and transmit advanced shipping notices and invoices. All of these processes are mandated by the retailers WITHit does business with utilizing an automated computer-to-computer exchange of standard business documents referred to as "EDI." The Debtor is mindful that public auction sales with fulsome marketing efforts and on standard notice periods are more customary than shortened private sales. However, the Debtor believes, in its best business judgment, that the procedure and timeline proposed in this Sale Motion are reasonable, appropriate, and provide the very best result for the estate and its creditors under the circumstances. The Debtor respectfully requests that the Court approve a private sale of the WITHit membership interests to the Founders on the terms described. E. Gluck has been in the watch business for more than six decades, operating as a designer, importer and distributor of certain proprietary and licensed brands. Its proprietary anchor is Armitron, a longstanding name in the U.S. watch market, complemented by licensed fashion brands such as Anne Klein, Nine West, and others. At its peak, the company generated hundreds of millions of dollars in revenue by supplying a wide spectrum of U.S. retail partners, including mass merchants, department stores, mid-tier chains, off-price retailers and club stores. Beyond the domestic market, E. Gluck also built international distribution through third-party distributors and maintained a meaningful presence in travel retail, including duty-free and cruise channels. At the same time, external factors compounded the challenge. The COVID-19 pandemic disrupted supply chains, tightened retail ordering, and shifted consumer demand patterns. Tariffs and freight costs spiked, further eroding already thin margins. Retail partners across channels became more aggressive in managing their own inventories, often leaning on suppliers to absorb costs and risks. Meanwhile, the traditional watch category faced mounting structural headwinds as smart devices captured a larger share of consumer attention and spending. The cumulative effect was a company burdened by fixed costs and new obligations from the WITHit acquisition that were not offset by the anticipated increases in revenue, all while E. Gluck's core revenue and profitability have come under sustained pressure from macroeconomic shocks and long-term shifts in the consumer marketplace. E. Gluck sought relief under Chapter 11 to reset its cost structure, shed unproductive obligations, and position its long-standing business for long-term stability. The MUPA is a comprehensive, purchase and sale agreement setting forth all the rights and obligations contemplated between the Debtor and the Founders. The purchase price of the interest is $3,600,000.00. The key terms of the MUPA Agreement is also provided at https://urlcurt.com/u?l=yLWG5h. The Debtor submits that the terms of the MUPA are fair and reasonable, and that ample authority exists for the approval of the sale of the WITHit interests to the Founders. The Debtor has made the business decision to sell its membership interests in WITHit to the Founders pursuant to the MUPA. The Debtor and the Founders will fully unwind their business relationship and the Debtor will no longer provide fulfillment or other services to WITHit going forward, post-closing. The Debtor is seeking expedited approval of the Sale to afford a closing contemporaneous with the Legacy Sale, which is necessary to avoid rapid deterioration of the value of the membership interests. About E. Gluck Corporation E. Gluck Corporation -- https://egluck.com/ -- is an American watch manufacturer headquartered in Little Neck, New York. E. Gluck sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. N.Y. Case No. 25-12683) on December 1, 2025, listing between $10 million and $50 million in assets and liabilities. Judge Martin Glenn presides over the case. Alan D. Halperin at Halperin Battaglia Benzija, LLP, represents the Debtor as legal counsel. Israel Discount Bank of New York, as DIP lender, is represented by Jonathan N. Helfat, Esq., and Matthew Breen, Esq., at OTTERBOURG P.C., in New York. EDWA CONSTRUCTION: Seeks Chapter 11 Bankruptcy in Illinois ---------------------------------------------------------- On January 19, 2026, Edwa Construction, Inc. filed for Chapter 7 protection in the Northern District of Illinois. According to court filings, the Debtor reports between $0 and $100,000 in debt owed to 1-49 creditors. About Edwa Construction, Inc. Edwa Construction, Inc. is an Illinois-based construction company providing residential and commercial building services, including general contracting, renovation, and project management solutions. Edwa Construction, Inc. sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. Case No. 26-00862) on January 19, 2026. In its petition, the Debtor reports estimated assets of $0-$100,000 and estimated liabilities of $0-$100,000. Honorable Bankruptcy Judge Timothy A. Barnes handles the case. The Debtor is represented by David Freydin, Esq., Law Offices of David Freydin Ltd. EMPRESS LLC: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Empress, LLC 2 West Clay St San Francisco, CA 94121 Chapter 11 Petition Date: January 22, 2026 Court: United States Bankruptcy Court Northern District of California Case No.: 26-30058 Debtor's Counsel: Eric J. Gravel, Esq. THE LAW OFFICES OF ERIC J. GRAVEL 1390 Market St., Suite 200 San Francisco, CA 94102 Tel: (650) 931-6000 Fax: (650) 931-6424 Email: ctnotices@gmail.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $1 million to $10 million The petition was signed by Vijay D Patel as managing member. The Debtor has declared in the petition that there are no unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/Y5BGAFI/Empress_LLC__canbke-26-30058__0001.0.pdf?mcid=tGE4TAMA ENVELOPE 1 INC: Gets Extension to Access Cash Collateral -------------------------------------------------------- Envelope 1, Inc. received third interim approval from the U.S. Bankruptcy Court for the Southern District of Florida to continue using cash collateral to fund operations during its Chapter 11 case. The order recognizes Spectrum Commercial Finance, LLC as the Debtor's primary secured lender, holding valid, perfected, and non-avoidable liens on substantially all assets, including accounts receivable, inventory, equipment, and real property in Ohio. As of the petition date, the Debtor owed Spectrum approximately $927,263.50, plus interest and fees, and acknowledged Spectrum's lien rights in exchange for the continued use of cash collateral including cash and revenue. Under the court order, the use of cash collateral is strictly limited to amounts and purposes set forth in the budget, subject to a 10% variance per line item and a 5% cumulative variance overall. As adequate protection, the court granted Spectrum post-petition replacement liens on all assets acquired before or after the petition date, maintaining the same priority as its pre-bankruptcy liens while excluding avoidance actions. The Debtor required to maintain insurance, permit inspections, and provide financial information upon request. The authorization is temporary and terminates upon specified events, including default or case conversion. A further hearing is set for February 3, with objections to final relief due by February 2. About Envelope 1 Inc. Envelope 1, Inc manufactures and mails commercial envelopes and their contents. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-23400) on November 12, 2025. In the petition signed by Tarry Pidgeon, president, the Debtor disclosed up to $50 million in assets and up to $100 million in liabilities. Judge Mindy A. Mora oversees the case. Susan D. Lasky, Esq., at Susan D. Lasky, PA, represents the Debtor as legal counsel. EXTENSIONS PLUS: Has Deal on Cash Collateral Access --------------------------------------------------- Extensions Plus, Inc. asks the U.S. Bankruptcy Court for the Central District of California, San Fernando Valley Division, for authority to use cash collateral in accordance with its agreement with JPMorgan Chase Bank, N.A. Extensions Plus has been in business for about 30 years and employs 13 full-time workers. Before filing bankruptcy, the Debtor was facing severe financial pressure due to litigation with Ra Hair International Pvt. Ltd., which had obtained a $2.6 million judgment against the Debtor and was preparing to pursue punitive damages and levy the Debtor's bank accounts. These actions threatened to cripple the Debtor's cash flow and forced it to seek Chapter 11 protection to stay collection efforts and attempt a reorganization. After the filing, the Debtor and JPMorgan negotiated a stipulation allowing the Debtor to use cash collateral in exchange for monthly payments of $13,000 and the grant of replacement liens to protect the bank's secured position. JPMorgan holds two secured loans against the Debtor, totaling roughly $392,000, with one also secured by a deed of trust on the principal's residence. The court previously approved two such stipulations covering periods from June through September 2025 and from September through December 2025. The present motion asks the court to approve a third extension of the stipulated use of cash collateral from December 24, 2025, through March 23 based on a 90-day projected budget showing the Debtor can make the required payments while continuing operations. The Debtor anticipates seeking further renewals if necessary as it continues its reorganization efforts. A hearing on the matter is set for February 4. A copy of the motion is available at https://urlcurt.com/u?l=40Ltxb from PacerMonitor.com. JPMorgan is represented by: Brian W. Hockett, Esq. Thompson Coburn, LLP One US Bank Plaza St. Louis, MO 63101 Phone: (314) 552-6461 Fax: (314) 552-7000 bhockett@thompsoncoburn.com -and- Lukas Sosnicki, Esq. Thompson Coburn, LLP 10100 Santa Monica Blvd., Suite 500 Los Angeles, CA 90067 Phone: (310) 282-2500 Fax: (310) 282-2501 lsosnicki@thompsoncoburn.com About Extensions Plus Inc. Extensions Plus, Inc. designs and supplies high-quality women's hairpieces and wigs, including custom and ready-made styles made from real Indian human hair. It serves clients globally and domestically, including those experiencing hair loss and celebrities seeking premium hair extensions. Founded in 1988, Extensions Plus operates out of its headquarters in Tarzana, California. Extensions Plus sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 25-11102) on June 23, 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 Victoria S. Kaufman handles the case. The Debtor is represented by Peter T. Steinberg, Esq., at Steinberg Nutter and Brent. FALLS OF BRAEBURN: Gets Extension to Access Cash Collateral ----------------------------------------------------------- Falls of Braeburn, LLC and its affiliates received another extension from the U.S. Bankruptcy Court for the Southern District of Texas to use cash collateral to fund operations. The court issued a third interim order authorizing the Debtors to use cash collateral under a four-week budget, capping expenditures at 110% of each line item. As protection from any diminution in the value of their collateral, secured lenders, Wells Fargo Bank, N.A. and Argentic Real Estate Finance 2, LLC, will be granted replacement liens on all of the Debtors' pre-bankruptcy collateral. In addition, the court ordered the Debtors to pay the secured lenders for the interest expense and reserve escrow budget line items, with payments due this month ($774,772.26) and on February 5, ($184,184.92). Failure to cure any missed payment permits the secured lenders to terminate the Debtors' authority to use cash collateral. A final hearing is scheduled for February 12. A copy of the third interim order and the Debtor's budget is available at https://shorturl.at/5aRlO from PacerMonitor.com. As of the petition date, the Debtors owed about $64.5 million to Wells Fargo under a 2024 loan agreement; about $29 million to Argentic; and about $800,000 in unsecured debt to various utilities. About Falls of Braeburn, LLC Falls of Braeburn, LLC, Falls of Chelsea Lane, LLC, Northwest Miami Gardens, LP, and Falls of Westpark Apartments, Ltd. are privately held real estate investment companies based in Houston, Texas, specializing in ownership and management of apartment complexes. Falls of Braeburn, LLC and its affiliates filed their voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90602) on November 3, 2025. At the time of filing, the Debtor estimated $10 million to $50 million in both assets and liabilities. The petitions were signed by Siri Khalsa as authorized representative. Judge Christopher M Lopez presides over the case. Matthew S. Okin, Esq. at OKIN ADAMS BARTLETT CURRY LLP represents the Debtor as counsel. FERGUSON, MO: Moody's Cuts Issuer to Ba1 & Lease Ratings to Ba2 --------------------------------------------------------------- Moody's Ratings has downgraded the issuer rating to Ba1 from Baa3 for Ferguson (City of) MO. At the same time, Moody's downgraded the city's lease appropriation rating to Ba2 from Ba1. This action concludes the review for possible downgrade initiated on August 06, 2025. The downgrade reflects the continued trend of imbalanced operations expected through fiscal 2026 with no clear plan for revenue growth or expenditure reductions. RATINGS RATIONALE The Ba1 issuer rating reflects the city's weakened though adequate reserve position with available fund balance and liquidity expected to be about 12% and 39% of revenue, respectively, in fiscal 2025 base on unaudited results. The rating also considers the continued declines in total fund balance as a result of persistent structural imbalance that was made more clear by the completion of account reconciliations. The budget management practices are a governance weakness and a key consideration of the rating. The city's financial position is further challenged by costs associated with implementation of the Department of Justice consent decree, reliance on economically sensitive revenue streams, and two tax increment financing districts ending that will result in additional revenue loss. Management intends to seek alternative revenue streams and options to reduce expenses in the coming fiscal years, however there is currently no clear plan to achieve balance operations. The city's leverage is below 60% of revenue and economic metrics are stable. The certificates of participation are rated Ba2, one notch below the issuer rating, reflecting the annual risk of non-appropriation and essential nature of the pledged asset, a police facility. RATING OUTLOOK Moody's do not assign outlooks to local governments with this amount of debt. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Trend of balanced or surplus operations, resulting in a sustained increase in total and available general fund balances FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- A decline in the financial position of the city as evidenced by a decline in the available fund balance and/or liquidity ratios -- Further financial pressures associated with consent decree implementation costs without offsetting revenue streams PROFILE The City of Ferguson is located within St. Louis County approximately 13 miles northwest of downtown St. Louis with a population of approximately 18,350. METHODOLOGY The principal methodology used in these ratings was US Cities and Counties published in December 2025. FIRST BRANDS: Deal Lifts Stay, Keeps Affiliate Cases Active ----------------------------------------------------------- Clara Geoghegan of Law360 Bankruptcy Authority reports that First Brands' counsel informed a Texas bankruptcy court on Thursday, January 22, 2026, that the debtor has reached an agreement to lift the automatic stay in its Chapter 11 proceedings, enabling certain lenders to access approximately $250 million in inventory collateral. The agreement also settles a motion to dismiss the Chapter 11 cases of special purpose vehicles affiliated with the debtor. The resolution avoids further litigation over the lenders' enforcement rights and the standing of the affiliated entities in bankruptcy. With the dispute resolved, the Chapter 11 cases are expected to move forward under the agreed framework, the report states. About First Brands Group 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 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. The Debtors tapped Weil, Gotshal and Manges, LLP as legal counsel; Lazard Freres & Co. as investment banker; Alvarez & Marsal North America, LLC as financial advisor; and C Street Advisory Group as strategic communications advisor. Kroll Restructuring Administration, LLC is the Debtors' claims, noticing and solicitation agent. Gibson, Dunn & Crutcher, LLP and Evercore serve as the Ad Hoc Group of Lenders' legal counsel and investment banker, respectively. The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. FLAMINGO SEPTIC: Gets Extension to Access Cash Collateral --------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Jacksonville Division entered a second interim order authorizing Flamingo Septic and Utilities, LLC to use cash collateral. Under the order, the Debtor is permitted to use cash collateral solely to pay amounts expressly authorized by the court, including payments to the Subchapter V Trustee, and to cover current and necessary operating expenses set forth in an approved budget attached to the order. Any use of cash collateral outside these parameters is prohibited, and the authorization remains in effect pending a further hearing. As adequate protection, cash collateral lenders are granted perfected post-petition replacement liens on cash collateral, with the same validity, priority, and extent as their respective prepetition liens, without the need for additional filings. The order preserves the rights of the U.S. Trustee to appoint a creditors' committee and allows any duly appointed committee to challenge lien validity, priority, or extent. The interim authorization will continue until a further hearing on the motion scheduled for February 17. About Flamingo Septic and Utilities LLC Flamingo Septic and Utilities, LLC, doing business as Flamingo Plumbing, provides residential and commercial septic and plumbing services including tank installation, pumping, inspection, repair, and pipe or fixture maintenance in Jacksonville, Florida. Flamingo filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-04018) on November 3, 2025, with $1 million to $10 million in assets and liabilities. Charles Mullis, manager, signed the petition. Judge Jacob A. Brown presides over the case. Thomas Adam, Esq., at Adam Law Group, PA represents the Debtor as bankruptcy counsel. FOCUS FINANCIAL: Moody's Affirms B2 CFR, Outlook Remains Negative ----------------------------------------------------------------- Moody's Ratings affirmed Focus Financial Partners, LLC's (Focus) B2 corporate family rating, B2-PD probability of default rating, B2 senior secured first lien bank credit facilities and B2 senior secured notes. Focus plans to issue a $400 million fungible add-on to its existing $4,374 million senior secured term loan due September 2031, increasing the outstanding balance to $4,774 million. The company plans to use the proceeds alongside $200 million of cash on its balance sheet to fund a $600 million distribution to shareholders. Focus' outlook remains negative. RATINGS RATIONALE Focus' B2 CFR reflects its high recurring revenue, solid organic asset growth, and client retention rates. These strengths are offset by the firm's high financial leverage, aggressive financial policies and weak profitability. While this dividend recap transaction will bring Focus' leverage (debt/EBITDA including Moody's standard adjustments) modestly above 7.0x, Moody's expects leverage to be back below 7.0x in the next several quarters based on the positive momentum in the company's operating performance The firm has continued to grow its scale and revenues in 2025 due to a combination of management's continued execution of its growth strategy and supportive financial markets. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Focus' ratings could be upgraded if the Moody's-adjusted debt-to-EBITDA is sustained below 6x; and profitability, as measured by GAAP pretax income margins, is sustained above 5% annually. Conversely, the firm's ratings would be downgraded if Moody's-adjusted debt-to-EBITDA is sustained above 7.0x; or if the firm is not able to organically de-lever during the outlook period; or if the firm pursues additional debt-funded dividends. The principal methodology used in these ratings was Asset Managers published in May 2024. For Focus, the "Standalone Credit Profile" adjusted score of B2 is set three notches below the "Standalone Credit Profile Before Qualitative Notching Factors" of Ba2. This principally reflects the company's very high financial leverage, and its more aggressive financial policies. FTX TRADING: Trust to Appeal Chapter 11 Charity Claim Dispute Loss ------------------------------------------------------------------ Emily Lever of Law360 Bankruptcy Authority reports that the FTX Recovery Trust said it will appeal after a bankruptcy court rejected its attempt to claw back a $650,000 bonus paid to an employee of the defunct cryptocurrency exchange that had been earmarked for charitable donations. The court found that the payment did not qualify for avoidance under the Bankruptcy Code, dealing a setback to the trust’s efforts to recover funds for creditors as it continues to pursue asset recovery actions tied to FTX's collapse, the report cites. About FTX Trading Ltd. FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10 showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The official committee of unsecured creditors tapped Paul Hastings as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as Delaware and conflicts counsel; FTI Consulting, Inc. as financial advisor; and Jefferies, LLC as investment banker. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. GAP INC: Moody's Affirms 'Ba2' CFR & Alters Outlook to Positive --------------------------------------------------------------- Moody's Ratings changed The Gap, Inc.'s ("Gap") outlook to positive from stable and also affirmed the company's Ba2 corporate family rating and its Ba2-PD probability of default rating. Additionally, Moody's affirmed the Ba3 ratings of the company's senior unsecured notes. The company's speculative grade liquidity rating (SGL) remains unchanged at SGL-1. "The change in outlook to positive reflects the continued improvement in the company's operating performance and profitability due to successful new branding initiatives and cost efficiencies coupled with lower promotional cadence and better inventory management," Moody's Ratings Vice President, Mickey Chadha stated. "Although the business environment for the sector will remain challenging in 2026 due to the inherently discretionary nature of the product and the difficult consumer spending environment, Moody's expects the company to maintain its current operating performance trajectory", Chadha further stated. RATINGS RATIONALE The Gap, Inc.'s Ba2 corporate family rating reflects the company's very good liquidity, low funded debt and solid credit metrics. The company's debt/EBITDA has improved to 2.1x for the LTM period ending November 1, 2025 from 2.8x at the end of fiscal 2023 and down from 4.9x at the end of fiscal 2022. Moody's expects debt/EBITDA to remain at around 2.0x and EBIT/interest to continue to improve towards 5.0x over the next 12-18 months. The company's topline growth has shown improvement in all of its brands except for its smallest brand Athleta. Profitability has also increased significantly as margins have improved. Lower inventory levels have resulted in more profitable sales and less promotional activity and input costs have also been lower. The company has also reduced operating expenses through strategic cost cuts and store rationalization. The rating is supported by the company's good market position in the specialty apparel market with its ownership of a portfolio of specialty apparel brands (Old Navy, Gap, Banana Republic, and Athleta). The relatively shorter term of its store leases (approximately five years) has enabled the right sizing of its mature brands (Gap and Banana Republic). Investments in its online and mobile business have also strengthened its operational profile and improved its customer experience. Continued integration of its online and store experiences also supports its efforts to increase customer conversion. The Gap, Inc.'s SGL-1 reflects very good liquidity supported by its $2.5 billion in cash, cash equivalents and short term investments at the end of third quarter of fiscal 2025, about $538 million in free cash flow generation for the LTM 3Q2025 and no borrowings under its $2.2 billion asset based revolving credit facility. Moody's expects free cash flow to remain healthy in 2026. The company also owns sizable assets that it can monetize. The positive outlook reflects Moody's expectations that credit metrics will continue to improve in the next 12-18 months as disciplined inventory management will continue to support healthy operating margins with continued topline growth. The outlook also reflects the company's very good liquidity and moderate debt levels. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade would require consistency of performance at all its major brands including sustained sales growth and margin expansion, very good liquidity including solid free cash flow generation and maintenance of healthy cash balances as well as a conservative financial strategy. Quantitatively, debt/EBITDA would need to be sustained below 2.25x and EBIT/interest sustained above 5.0x. Ratings could be downgraded if EBIT/interest is sustained below 3.5x or if debt/EBITDA is sustained above 3.5x. Ratings could also be downgraded if operating performance including operating margins and sales deteriorate or if liquidity deteriorates for any reason or financial strategies become detrimental to creditors. Headquartered in San Francisco, California, The Gap, Inc. is a leading global retailer offering clothing and accessories for men, women, and children under its Gap, Banana Republic, Old Navy, and Athleta brands. LTM November 01, 2025 net sales were approximately $15.3 billion. The principal methodology used in these ratings was Retail and Apparel published in September 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. GEORGIA PROTONCARE: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Georgia ProtonCare Center Inc. d/b/a Emory Proton Therapy Center (EPTC) 615 Peachtree St. NW Atlanta, GA 30308 Business Description: Georgia ProtonCare Center Inc., doing business as Emory Proton Therapy Center, is a nonprofit organization that owns and operates a proton therapy cancer treatment facility in Atlanta, Georgia, providing radiation oncology services using proton beam therapy for the treatment of cancer. Incorporated in 2017, the organization also supports clinical and basic research related to cancer treatment and collaborates with other institutions focused on cancer care and prevention. Georgia ProtonCare Center Inc. is governed by a board of directors and has Provident Resources Group, Inc., a nonprofit Georgia corporation, as its sole member. Chapter 11 Petition Date: January 22, 2026 Court: United States Bankruptcy Court Northern District of Georgia Case No.: 26-50882 Judge: Hon. Jeffery W Cavender Debtor's Counsel: David E. Gordon, Esq. POLSINELLI PC 1201 West Peachtree Street NW Suite 1100 Atlanta, GA 30309 Tel: 404-253-6000 Email: dgordon@polsinelli.com Debtor's Financial Advisor: BDO CONSULTING GROUP, LLC Debtor's Exclusive Investment Banker: GBH SOLIC HOLDCO, LLC Debtor's Notice, Claims, & Balloting Agent and Administrative Advisor: EPIQ CORPORATE RESTRUCTURING, LLC Estimated Assets: $100 million to $500 million Estimated Liabilities: $500 million to $1 billion The petition was signed by Darryl Myers as chief restructuring officer. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/4CGXIKQ/Georgia_ProtonCare_Center_Inc__ganbke-26-50882__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Emory Healthcare Trade Debt $22,279,145 550 Peachtree Street NE Atlanta, GA 30308 Contact: Gina Bertolini Phone: (404) 727-4974 2. Varian Medical Systems, Inc. Trade Debt $5,961,753 3100 Hansen Way Palo Alto, CA 94304 Contact: Stephen Jamison Phone: (800) 544-4636 3. Aramark Services, Inc. Trade Debt $149,546 1101 Market Street 29th Floor Philadelphia, PA 19107-2988 Contact: Joan White Phone: (704) 989-6906 4. Cigna Payor Refund $147,750 900 Cottage Grove Road Bloomfield, CT 06002 Contact: Office Of The General Counsel Phone: (800) 997-1654 5. United Healthcare Payor Refund $139,305 9800 Healthcare Lane Minnetonka, MN 55343 Contact: Office Of The General Counsel Phone: (866) 414-1959 6. Anthem Blue Cross Blue Shield Payor Refund $123,596 740 W. Peachtree Street NW Atlanta, GA 30308 Contact: Office Of The General Counsel Phone: (678) 992-1567 7. MMBC, LLC Trade Debt $95,101 250 W. Pratt Street Ste 2201 Baltimore, MD 21201-2463 Contact: Greg Pope Phone: (859) 351-1615 8. Aetna Payor Refund $84,793 151 Farmington Avenue Hartford, CT 06156 Contact: Office Of The General Counsel Phone: (800) 872-3862 9. Inspired Anesthesia Trade Debt $62,100 Providers LLC 1266 West Paces Ferry Road Northwest Suite 652 Atlanta, GA 30327 Contact: Stephanie Resnick Phone: (954) 426-1169 10. Tricare Payor Refund $40,327 7700 Arlington Blvd Suite 5101 Falls Church, VA 22042 Contact: Office Of The General Counsel Phone: (877) 874-2273 11. Patient 1 Patient Refund $38,673 Address: Private Patient Information Phone: Private Patient Information 12. Veterans Administration Payor Refund $38,518 810 Vermont Avenue NW Washington, DC 20420 Contact: Office Of The General Counsel Phone: (800) 827-1000 13. Batchelor & Kimball, Inc Trade Debt $36,965 2227 Plunkett Road Conyers, GA 30012 Contact: Jeff Clotfelter Phone: (770) 482-2000 14. Palmetto Gba Payor Refund $36,352 PO Box 100306 Columbia, SC 29202-3306 Contact: Office Of The General Counsel Phone: (803) 735-1034 15. Patient 2 Patient Refund $33,498 Address: Private Patient Information Phone: Private Patient Information 16. Peach State Health Plan Payor Refund $31,994 1100 Circle 75 Parkway Suite 1100 Atlanta, GA 30339 Contact: Office Of The General Counsel Phone: (866) 874-0633 17. Siemens Medical Solutions Trade Debt $20,457 USA, Inc 221 Gregson Drive Carey, NC 27511 Contact: Benjamin Tenney Phone: (678) 314-6102 18. GEHA Payor Refund $15,344 310 NE Mulberry Street Lee'S Summit, MO 64086 Contact: Office Of The General Counsel Phone: (800) 821-6136 19. Marant Digital LLC Trade Debt $13,400 1080 Peachtree St NE 2503 Atlanta, GA 30309 Contact: Chris Dimacale Phone: (404) 452-5168 20. Amerisourcebergen Trade Debt $13,022 P.O. Box 978526 Dallas, TX 75397-8526 Contact: Drew Guyer Phone: (978) 857-3233 GEORGIA PROTONCARE: Seeks to Sell Treatment Center at Auction ------------------------------------------------------------- Georgia ProtonCare Center, Inc., seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgial, Atlanta Division, to sell substantially all Assets at auction, free and clear of liens, claims, interests, and encumbrances. The Debtor owns and operates the only proton therapy cancer treatment center in Georgia, located at 615 Peachtree St. NE, Atlanta, Georgia. The Facility is one of only 473 operating proton therapy centers in the United States. The first patient was treated at the Facility in December of 2018 and thousands of patients have been treated there since. Emory Healthcare Inc. and The Emory Clinic Inc., which are affiliates of the Stalking Horse Bidder, manage the Facility's day-to-day operations pursuant to that certain Amended and Restated Master Services Agreement by and among the Debtor and Emory. Emory's responsibilities under the Emory Management Agreement include managing sales and marketing, clinical care, accounting, billing and collections, accounts payable, staffing, human resources, and compliance with applicable state regulations governing the provision of medical care at the Facility. Lower than projected annual revenue from Medicare, Medicaid, commercial, and private pay reimbursements and fewer than expected patient counts have resulted in the Debtor's inability to meet its secured bond debt obligations from 2022 through and including 2025. Although the Debtor’s facility is one of the busiest proton therapy centers in the United States, treating over 1,000 cancer patients annually, the Debtor's revenues are insufficient to service its debt payments. Ongoing reimbursement rate issues with the United States Department of Health and Human Services' Centers for Medicare & Medicaid Services and its Medicare Administrative Contractor, as well as with other commercial insurance payors, have further exacerbated revenue concerns. The Debtor implemented various cost reduction initiatives, but those efforts were largely offset by ongoing inflationary pressure on its operating costs. As a result of the revenue and capacity constraints, as well as the annual operating expenses necessary to maintain the clinical treatments of the Facility, the Debtor was unable to substantially improve its operating cash flow and liquidity position. Overview of the Stalking Horse Asset Purchase Agreement by Emory University, by and on behalf of Emory University Hospital Midtown, is provided. https://urlcurt.com/u?l=Gsn4Xi The Debtor believes that the prompt Sale of the Assets represents the best option available to maximize value for all stakeholders. The dates of the timeline are subject to change in the event the Bankruptcy Court does not enter an order at that hearing: -- February 4, 2026 Deadline for Debtor to serve: (i) the Sale Procedures Order, (ii) the Bid and Sale Procedures, (iii) Sale Procedures Notice, and (iv) Initial Cure Notice -- February 17, 2026 Deadline to object to Initial Cure Notice regarding assumption of executory contracts and unexpired leases -- February 23, 2026 Sale Objection Deadline -- March 4, 2026 LOI Deadline -- March 5, 2026 Deadline for Debtor to file and serve a notice stating whether one or more LOIs was received prior to the LOI Deadline -- March 6, 9-12, 2026 (subject to the Court's availability) Stalking Horse Sale Hearing (if no LOI is Received) -- April 17, 2026 Bid Deadline -- April 20, 2026 Auction (if needed) -- April 21, 2026 Deadline for Debtor to file notice designating Winning Bidder and Back-Up Bidder, if applicable -- April 22, 2026 Post-Auction Objection Deadline -- April 23-24, 2026 (subject to the Court's availability) Auction Sale Hearing (to approve Winning Bid and BackUp Bidder, if applicable) The Debtor believes this timeline maximizes the prospect of receiving the highest and best offer without unduly prejudicing its estate. The Debtor believes the proposed sale timeline will preserve the Debtor's cash, minimize any further deterioration of the Assets, and is in the best interests of all stakeholders. The Debtor has designed a process by which (i) a Stalking Horse Bidder has been selected (subject to approval by this Court); and (ii) bidders may submit bids that are higher or otherwise better than the Stalking Horse Bid and thereafter participate at an Auction. If one or more letters of intent are received by March 4, 2026, and additional higher or better bids are received by April 17, 2026, the Debtor will conduct an Auction to determine the highest or best Qualified Bid. In addition, the Debtor proposes to publish the Sale Procedures Notice once in USA Today as soon as practicable after entry of the Sale Procedures Order. Finally, the Debtor will post a copy of the Sale Procedures Notice at the website of the Debtor’s claims and noticing agent, available at: https://dm.epiq11.com/GeorgiaProton. The Debtor is also seeking approval of certain procedures to facilitate the fair and orderly assumption and assignment of the Assigned Contracts in connection with the Sale. The Debtor seeks authority to sell the Assets through an Auction and related sale process, subject to the Debtor's right to seek an alternative course of action to maximize the value of its estate. The Debtor believes the proposed Bid and Sale Procedures will promote active bidding from seriously interested parties and will elicit the highest or otherwise best offers available for the Assets. About Georgia ProtonCare Center Georgia ProtonCare Center Inc. owns and operates the Facility, which is the sole proton therapy treatment center in the state of Georgia, and one of only 47 such facilities operating in the United States. Georgia ProtonCare Center sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.Ge. Case No. 26-50882-JWC) on January 22, 2026. Judge Jeffery W. Cavender presides over the case. The Debtor is being advised by David E. Gordon at Polsinelli PC as legal counsel, BDO as financial advisor, and SOLIC Capital as the investment banker. The Bond Trustee is being advised by Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo, P.C. as legal counsel and Houlihan Lokey as investment banker. GIBRALTAR INDUSTRIES: S&P Assigns 'BB-' ICR, Outlook Stable ----------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issuer credit rating to Buffalo, N.Y.-based Gibraltar Industries Inc. S&P also assigned its 'BB-' issue-level rating and '3' recovery rating to its proposed term loan B. Our ratings on Gibraltar reflect its leading position in niche markets and stable demand characteristics, which are somewhat offset by its small scale and exposure to cyclical and competitive end markets. The stable outlook reflects our expectation that Gibraltar will maintain leverage of 3x-4x over the next 12 months, supported by growth in its end markets and earnings contributions from the acquisition. Gibraltar plans to issue $1.3 billion in term loans to fund the acquisition of Arundel Square Garden LLC. At the same time the company plans to issue a five-year $500 million revolving credit facility (undrawn at close). Pro forma for the transaction and S&P's earnings expectations, it expectd S&P Global Ratings-adjusted debt to EBITDA to be 3.0x-4.0x for 2026. Gibraltar is primarily funding the acquisition of Arundel Square Garden LLC (the owner of Omnimax International) with debt. The proposed transaction includes a $650 million term loan A, a $650 million term loan B, and a $500 million revolving credit facility (undrawn at close), which replaced the company's $400 million revolving credit facility. The funding also includes some balance-sheet cash. Proceeds will be used to fund the $1.335 billion acquisition of Omnimax and pay associated fees. S&P said, "We expect debt leverage to increase materially in 2026 before improving to close to 3x in 2027. The proposed transaction includes $1.3 billion of additional debt, increasing debt leverage materially to 3.5x-4x compared to 0.2x in 2024. However, we expect debt leverage to improve toward 3x in 2027 as Gibraltar benefits from a full year of earnings from acquisitions. We also expect the company to generate solid free operating cash flows, supported by stable working capital and moderate capital spending. We anticipate Gibraltar will generate free operating cash flow of $150 million-$200 million in 2026 and 2027. Given the company's publicly stated target leverage of 2.0x-2.5x, we expect it will use excess cash and proceeds from the sale of its renewables segment for debt reduction. "Our assessment of Gibraltar's competitive risk reflects its leading position in niche markets and stable demand characteristics, somewhat offset by its small scale and exposure to cyclical and competitive end markets. Gibraltar is small compared to similarly rated building materials peers, with about $1.7 billion-$1.8 billion in revenues anticipated in 2026 pro forma for the transaction. The company also has limited geographic diversity because almost all its revenues are generated in the U.S. Gibraltar has a variety of products serving several end markets, but most of it is tied to roofing and residential end markets, which will contribute about 80% of revenues pro forma the Omnimax acquisition. As a result, performance is dependent on the health of cyclical residential end markets and--to a lesser extent--agriculture and infrastructure end markets. Somewhat offsetting these risks is Gibraltar's nationwide presence, with a broad footprint focused on local and regional markets. This, along with high levels of service, can serve as an important differentiator. Furthermore, its roofing products largely depend on non-discretionary repair and replacement end markets, which means the company's performance is less susceptible to economic and housing cyclicality. However, the contribution from storm-based demand in active weather seasons (or lack thereof in relatively benign seasons) could add to the potential volatility in revenues and earnings on a year-over-year basis. Customers include contractors, builders, do-it-yourself homeowners, large indoor produce growers, retail garden centers, and commercial and transport contractors. However, there is some customer concentration, with one customer contributing more than 10% of sales, but this is typical with big box customers that purchase a wide variety of products. "We expect Gibraltar to maintain stable profitability despite its exposure to volatile raw material costs. The company has a variable cost structure, which should help preserve margins during periods of reduced demand. Variable costs are an important counterbalance to its participation in cyclical end markets because they allow the company to reduce expenses as demand falls. In addition, products on average are typically inexpensive, constituting less than 10% of the total project cost, which can reduce customer price sensitivity. Key raw materials include volatile steel, aluminum, and resin. Nonetheless, contracts include the ability to pass on some costs to customers, though sometimes at a lag, which could temporarily weaken margins. We also believe the company's strategic initiatives around cost controls and productivity, including a digital transformation, should further support profitability. As such, we expect S&P Global Ratings-adjusted EBITDA margins of 17%-18% in 2026 and 2027. "The stable outlook reflects our expectation that Gibraltar will maintain leverage of 3x-4x over the next 12 months, supported by growth in its end markets and earnings contributions from the Omnimax acquisition." S&P could lower its rating on Gibraltar over the next 12 months if it anticipates its leverage could remain above 4x. This could occur if: -- Integration and deleveraging of the Omnimax acquisition takes longer than S&P anticipated; or -- Macroeconomic conditions weaken materially from S&P's expectations. S&P said, "We view an upgrade as unlikely over the next 12 months. However, we could raise the rating if Gibraltar successfully integrates the Omnimax acquisition and maintains a financial policy that supports credit metrics commensurate with a higher rating." This implies adjusted leverage comfortably below 4x on a sustained basis. GLOBAL SUPPLIES: Unsecureds Will Get 18% Dividend over 60 Months ---------------------------------------------------------------- Global Supplies NY Inc. filed with the U.S. Bankruptcy Court for the Eastern District of New York a Disclosure Statement describing Second Amended Chapter 11 Plan dated January 15, 2026. The Debtor is a New York corporation with its principal place of business located at 138 31st Street, Brooklyn, NY. Formed in 2009 to sell health and beauty products the company expanded its business on the internet., conducting most of its sales on Amazon Marketplace. The financial background leading to this chapter 11 case, is that the Debtor had been relying upon Amazon Capital Services ("ACS") to finance its operations. When ACS discontinued that line of business, the Debtor was forced to rely upon expensive short-term loans and Merchant Capital Advances. In or about July of 2024, one of the Debtor's creditors served a purported lien against the Debtor's account at Amazon. This caused Amazon to freeze all funds due to Global from sales on Amazon Marketplace, effectively depriving Global of cash flow. This triggered the filing of an emergency chapter 11 petition on August 1, 2024. The Plan proposes to pay in full all senior secured creditors (i.e. those whose claims are secured by value in the debtor's collateral as set forth in Debtor’s bankruptcy schedules). All other purportedly secured creditors (whether included in Debtor's Bankruptcy Schedules as secured or filed as secured claims) are deemed undersecured and will be treated as General Unsecured Creditors. All General Unsecured creditors are deemed Allowed General Unsecured claims and will be paid approximately 18% in equal monthly installments over five years by sharing pro-rata in a monthly distribution of $6,500 for a total of $390,000. Class 4 consists of Non-Priority General Unsecured Claims. Pro rata share of monthly payment by Debtor of $6,500 for 60 months for a total of $390,000, approximating an18% dividend. This Class is impaired. It is anticipated that the Debtor's operating profits between the present time and the Effective Date will be sufficient to fund all payments due on that date. To the extent there is a shortfall, it will be funded by the Debtor's principal. It is anticipated that the Debtor's operating profits between the present time and the Date of Substantial Consummation will be sufficient to fund all payments due on that date. To the extent there is a shortfall, it will be funded by the Debtor's principal. Monthly plan payments will be made from current monthly profits and accumulated reserves to be banked during cyclical periods of greater sales. A full-text copy of the Disclosure Statement dated January 15, 2026 is available at https://urlcurt.com/u?l=8BXTsR from PacerMonitor.com at no charge. Counsel to the Debtor: CORASH & HOLLENDER, P.C. Paul Hollender, Esq. 1200 South Avenue, Suite 201 The Corporate Park of Staten Island Staten Island, New York, 10301 Telephone: (718) 442-4424 About Global Supplies NY Global Supplies NY, Inc. is a distribution service provider in New York. Global Supplies NY filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. N.Y. Case No. 24-43232) on August 1, 2024, with $1,115,425 in assets and $3,633,514 in liabilities. Jolene Wee of JW Infinity Consulting, LLC serves as Subchapter V trustee. Judge Elizabeth S. Stong presides over the case. Rachel S. Blumenfeld, Esq., at the Law Office of Rachel S. Blumenfeld is the Debtor's bankruptcy counsel. Flushing Bank can be reached through its counsel: Frank C. Dell'Amore, Esq. Jaspan Schlesinger Narendran, LLP 300 Garden City Plaza Garden City, NY 11530 Tel: 516-393-8289 Fax: 516-393-8282 fdellamore@jaspanllp.com Amazon Capital Services can be reached through its counsel: Michael J. Gearin, Esq. K&L Gates, LLP 925 Fourth Avenue, Suite 2900 Seattle, WA 98104 Phone: +1.206.370.6666 Mike.Gearin@klgates.com HANSEN-MUELLER: Gets Extension to Access Cash Collateral -------------------------------------------------------- Hansen-Mueller, Inc. received another extension from the U.S. Bankruptcy Court for the District of Nebraska to use cash collateral. The court issued its fourth interim order authorizing the Debtor to use cash collateral through February 20 in accordance with its budget. A 15% variance is permitted on individual line items and on an aggregate weekly basis, except that no upward variance is allowed for the Debtor's professional fees. The Debtor formally acknowledges owing BMO Bank, N.A. more than $50.8 million in principal, plus a $2.5 million deficiency fee, and agrees that BMO's claims are valid, enforceable, and secured by first-priority liens on substantially all assets. It also waives the right to later challenge the legitimacy or enforceability of those liens, significantly strengthening BMO's secured position. As adequate protection against any diminution in collateral value, BMO and the pre-petition senior lenders will be granted first-priority replacement liens on substantially all post-petition assets (excluding Chapter 5 avoidance actions), along with superpriority administrative expense claims under section 507(b) that prime nearly all other claims. If an event of default occurs, BMO may terminate cash collateral use after a short notice period and seek emergency relief. Separately, the official committee of unsecured creditors retains limited investigation rights until February 28, including access to up to $50,000 of estate funds to investigate and potentially challenge BMO's liens. The Debtor must deliver weekly variance reports to BMO and the creditors' committee comparing actual receipts and disbursements against the budget and explaining any deviations. All cash collateral must be deposited into accounts maintained at BMO, and budget modifications require BMO's prior written consent. A final hearing is scheduled for February 17. A copy of the Debtor's budget is available at https://shorturl.at/4OIgy from PacerMonitor.com. BMO, as secured creditor, is represented by: Sam P. King, Esq. Croker Huck Law Firm 2120 South 72nd Street, Suite 1200 Omaha, NE 68124 Phone: (402) 391-6777 Fax: (402) 390-9221 sking@crokerlaw.com About Hansen-Mueller Co. Hansen-Mueller Co. is a nationwide agribusiness company headquartered in Omaha, Nebraska, engaged in grain merchandising and processing with a diversified platform spanning the central United States, including nine grain elevators, four port terminals, and an oats processing facility producing pet food and animal feeds in Toledo, Ohio. The Company operates four complementary business units -- Oat Trading, Wheat Merchandising, Cross-Country Trading, and a Houston Joint Venture -- and maintains grain trading offices in multiple states, supported by a private railcar fleet and multi-modal transportation network for domestic and international flows. Founded in 1979, Hansen-Mueller employs approximately 120 people across its operations in the U.S. and conducts business in 44 states and 24 countries, focusing on niche crops, international trade, and vertically integrated processing. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Neb. Case No. 25-81226) on November 17, 2025. In the petition signed by Michael Compton, chief restructuring officer, the Debtor disclosed up to $500 million in both assets and liabilities. Judge Thomas L. Saladino oversees the case. The Debtor tapped KOLEY JESSEN P.C., L.L.O. as legal counsel, SILVERMAN CONSULTING as restructuring advisor, MICHAEL G. COMPTON as chief restructuring officer and financial advisor, ASCENDANT CONSULTING PARTNERS, LLC as investment banker, and EPIQ BANKRUPTCY SOLUTIONS, LLC as notice, claims, and solicitation agent. HERITAGE COLLEGIATE: Court Narrows Claims in Elemental, et al. Case ------------------------------------------------------------------- Judge Thomas J. Tucker of the United States Bankruptcy Court for the Eastern District of Michigan granted in part, and denied in part, Elemental Capital, Inc. and Redstone Advance, Inc.'s partial motion to dismiss Counts III, VI, VII, and VIII of the amended complaint filed by Heritage Collegiate Apparel, Inc. in the adversary proceeding captioned as HERITAGE COLLEGIATE APPAREL, INC., Plaintiff, v. ELEMENTAL CAPITAL, INC., and REDSTONE ADVANCE, INC., Defendants, Adv. No. 25-4146 (Bankr. E.D. Mich.). This adversary proceeding presents a dispute between the Plaintiff, a Chapter 11 bankruptcy debtor, and two Defendants that provided financing to the Debtor pre-petition, under what are commonly known as merchant cash advance agreements. The Motion seeks dismissal of four of the counts in the Plaintiff's eight-count amended complaint, namely, Counts III, VI, VII, and VIII. These counts concern two agreements the Plaintiff made with the Defendants, namely: (1) the agreement dated and effective June 14, 2023 that the Plaintiff made with Defendant Redstone Advance, Inc., entitled "Sale of Future Receipts Agreement" (the "Redstone Agreement"); and (2) the agreement dated and effective December 6, 2023 that the Plaintiff made with Defendant Elemental Capital, Inc., entitled "Sale of Future Receipts Agreement" (the "Elemental Agreement"). According to the Redstone Agreement, Redstone purchased $899,400.00 of the Plaintiff's "Future Receipts," for a purchase price of $600,000.00. The Redstone Agreement stated that the transaction was not a loan, but rather a sale of future receipts. According to the Elemental Agreement, Elemental purchased $5,425,000.00 of the Plaintiff's "Future Receipts," for a purchase price of $3,550,000.00. Like the Redstone Agreement, the Elemental Agreement stated that the transaction was not a loan, but rather a sale of future receipts. Redstone did not file a proof of claim in the Plaintiff's bankruptcy case. Elemental timely filed a proof of claim in the bankruptcy case, in the amount of $4,596,132.00. As the basis of that claim, Elemental alleged "Sale of Future Receipts/Ownership Interest in Future Receipts" and "Breach of Purchase Agreement." The parties' dispute about Elemental's claim matters, because under the Plaintiff's confirmed Chapter 11 liquidation plan, the Plaintiff is holding enough in funds to pay up to the full amount of Elemental's claim, if and to the extent Elemental prevails in this adversary proceeding. Counts VI and VII Count VI seeks a declaration that the Redstone Agreement and the Elemental Agreement are "loan transactions," and therefore are "subject to the laws applicable to loans, including usury laws." Count VII notes that these agreements both state that New York law governs, and alleges that these "disguised loan agreements" are void and unenforceable under New York law. This is so, Count VII alleges, because the agreements both charge disguised interest at a rate much higher than the maximum permitted by New York's criminal usury statute, which is 25% per annum. The Defendants argue that Counts VI and VII must be dismissed, because they each seek affirmative relief of a form that is not permitted under New York's usury laws. The Plaintiff argues that Counts VI and VII amount to an objection to the proof of claim filed by Elemental, based on the theory that the Elemental Agreement transaction was a disguised loan, not a true sale, and that the loan violated New York's criminal usury statute. The Defendants argue that these counts say nothing to indicate that they are a claim objection, and should not be viewed as such for that reason. The Court agrees with the Defendants on this point. As for Redstone, the Plaintiff's Amended Complaint does not allege that Redstone filed a proof of claim, Redstone in fact did not file a proof of claim. As a result, there can be no objection to a proof of claim against Redstone. As for Elemental, the Amended Complaint mentions the fact that Elemental filed a proof of claim, and briefly describes the nature of that claim, but the Amended Complaint fails to plead an objection to that claim that satisfies the pleading requirements of Fed. R. Civ. P. 8(a), which applies in this adversary proceeding under Fed. R. Bankr. P. 7008. The relief the Plaintiff could obtain from an objection to Elemental's claim is, at most, the partial or entire disallowance of Elemental's claim. Counts VI and VII do not ask for that relief. The relief sought in Count VI is merely a declaratory judgment that the Elemental Agreement and the Redstone Agreement "are loan transactions, despite any reference to the contrary, and are subject to laws applicable to loans, including usury laws." For these reasons, the Court must conclude that Counts VI and VII of the Amended Complaint are different from, and more than, a mere objection to the claim filed by Elemental. And these Counts cannot be considered an objection to any claim filed by Redstone, since Redstone filed no proof of claim. As a result, Count VI (to the extent it is intended to support Count VII) and Count VII fail to state plausible claims against either Elemental or Redstone upon which relief can be granted. The Court must "accept the facts as stated in" the Elemental Agreement, and those facts require the conclusion that if the Elemental Agreement transaction was a disguised loan, that loan was for more than $2.5 million. As a result, New York's criminal usury statute does not apply to the Elemental Agreement. Therefore it would be futile for the Plaintiff to amend its complaint to expressly state an objection to Elemental's claim based on the New York usury statute. For these reasons, the Court must dismiss Count VII of the Plaintiff's Amended Complaint, with prejudice. And to the extent the declaratory judgment claim in Count VI is intended to support Count VII, it too must be dismissed, with prejudice. Count VI and VIII Count VIII alleges that if Michigan law applies to the Redstone Agreement and the Elemental Agreement, rather than New York law, then those agreements violate Michigan's usury law. If that is so, the Plaintiff alleges, then under Michigan law, Redstone and Elemental are not entitled to collect from the Debtor anything over and above the money actually disbursed to the Plaintiff under the Disquised Loan Agreements. The Defendants argue, among other things, that the Plaintiff's alternative claim of usury under Michigan law in Count VIII is barred by Mich. Comp. Laws Sec. 450.1275. The Court agrees with the Defendants, so Count VIII must be dismissed, with prejudice. And to the extent the declaratory judgment claim in Count VI is intended to support Count VIII, it too must be dismissed, with prejudice. Count VI as a stand-alone claim The Defendants argue that if the Plaintiff's usury counts (Counts VII and VIII) are dismissed, then the declaratory judgment count (Count VI) also must be dismissed, because it is not a stand-alone cause of action. It is unclear to what extent the declaratory judgment claim in Count VI is meant to, or does, support counts of the Plaintiff's Amended Complaint other than the usury counts. So the Court will not dismiss Count VI in its entirety at this time. Rather, it will be dismissed only to the extent it is intended to support the two usury counts. Count III (alter ego) The Amended Complaint alleges that Redstone and Elemental each are Florida corporations. But Count III of the Amended Complaint seeks a judgment holding that Elemental and Redstone are alter egos, and asks the Court to disregard their separate existence. However, the Court concludes that Count III fails to state a claim upon which relief can be granted, and the Court will dismiss this count, without prejudice. A copy of the Court's Opinion and Order dated January 20, 2026, is available at https://urlcurt.com/u?l=FvtkG8 from PacerMonitor.com. About Heritage Collegiate Apparel Heritage Collegiate Apparel, Inc., serves as the official retailer of the University of Michigan Athletic Department. For more than 20 years, the Debtor has provided a selection of clothing, merchandise and gifts to the University of Michigan. Heritage Collegiate Apparel filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-47922) on Aug. 16, 2024, listing $1 million to $10 million in assets and $10 million to $50 million in liabilities. The petition was signed by Scott Hirth as president. Judge Thomas J. Tucker presides over the case. Kim K. Hillary, Esq., at Schafer and Weiner, PLLC represents the Debtor as legal counsel. On September 3, 2024, the United States Trustee appointed an official committee of unsecured creditors in this Chapter 11 case. The committee tapped Wolfson Bolton Kochis PLLC as counsel and Capstone Partners as financial advisor. HERITAGE COLLEGIATE: Court Narrows Claims in Vault 26 Case ---------------------------------------------------------- Judge Thomas J. Tucker of the United States Bankruptcy Court for the Eastern District of Michigan granted in part, and denied in part, Vault 26 Capital, LLC's partial motion to dismiss Counts III, IV, and V of the amended complaint filed by Heritage Collegiate Apparel, Inc. in the adversary proceeding captioned as HERITAGE COLLEGIATE APPAREL, INC., Plaintiff, v. VAULT 26 CAPITAL, LLC, Defendant, Adv. No. 25-4148 (Bankr. E.D. Mich.). This adversary proceeding presents a dispute between the Plaintiff, a Chapter 11 bankruptcy debtor, and a Defendant that provided financing to the Debtor pre-petition, under what are commonly known as merchant cash advance agreements. The Motion seeks dismissal of three of the counts in the Plaintiff's five-count amended complain, namely, Counts III, IV, and V. These counts concern three similar agreements, each entitled "Merchant Agreement," the Plaintiff made with the Defendant Vault 26 Capital, LLC, doing business as Vault Capital ("Vault Capital"), namely: (1) the agreement dated November 9, 2023 (the "First Vault Capital Agreement"); (2) the agreement dated November 14, 2023 (the "Second Vault Capital Agreement"); and (3) the agreement dated December 1, 2023 (the "Third Vault Capital Agreement"). According to the First Vault Capital Agreement, Vault Capital purchased $572,000.00 of the Plaintiff's future "Receipts," for a purchase price of $260,000.00. According to the Second Vault Capital Agreement, Vault Capital purchased $519,200.00 of the Plaintiff's future "Receipts," for a purchase price of $236,000.00. According to the Third Vault Capital Agreement, Vault Capital purchased $195,000.00 of the Plaintiff's future "Receipts," for a purchase price of $125,000.00. Counts III and IV Count III seeks declaration that the three Vault Capital Agreements are loan transactions, and therefore are subject to the laws applicable to loans, including usury laws. Count IV notes that these agreements all state that New York law governs, and alleges that these disguised loan agreements are void and unenforceable under New York law. This is so, Count IV alleges, because the agreements both charge disguised interest at a rate much higher than the maximum permitted by New York's criminal usury statute, which is 25% per annum. The Defendant argues that Counts III and IV must be dismissed, because they each seek affirmative relief of a form that is not permitted under New York's usury laws. The Plaintiff argues that Counts III and IV amount to an objection to the proof of claim filed by Vault Capital, based on the theory that the three Vault Capital Agreement transactions were disguised loans, not true sales, and that the loans violated New York's criminal usury statute. Vault Capital argues that these counts say nothing to indicate that they are a claim objection, and should not be viewed as such for that reason. The Court agrees with Vault Capital on this point. The Amended Complaint mentions the fact that Vault Capital filed a proof of claim, and briefly describes the nature of that claim, but the Amended Complaint fails to plead an objection to that claim that satisfies the pleading requirements of Fed. R. Civ. P. 8(a), which applies in this adversary proceeding under Fed. R. Bankr. P. 7008. The relief the Plaintiff could obtain from an objection to Vault Capital's claim is, at most, the partial or entire disallowance of Vault Capital's claim. Counts III and IV do not ask for that relief. The relief sought in Count III is merely a declaratory judgment that the three Vault Capital Agreements are loan transactions, despite any reference to the contrary, and are subject to laws applicable to loans, including usury laws. For these reasons, the Court must conclude that Counts III and IV of the Amended Complaint are different from, and more than, a mere objection to the claim filed by Vault Capital. As a result, Count IV and Count III (to the extent it is intended to support Count IV) fail to state plausible claims against Vault Capital upon which relief can be granted. The Court will dismiss Count IV of the Plaintiff's Amended Complaint, without prejudice to the extent of the leave the Court will grant the Plaintiff to file an amended complaint. And to the extent the declaratory judgment claim in Count III is intended to support Count IV, it too must be dismissed, also without prejudice. The Court will grant the Plaintiff leave to file an amended complaint that explicitly includes an objection to the proof of claim filed by Vault Capital, and that is consistent with this Opinion. Count V Count V alleges that if Michigan law applies to the Vault Capital Agreements, rather than New York law, then those agreements violate Michigan's usury law. Vault Capital argues, among other things, that the Plaintiff's alternative claim of usury under Michigan law in Count V is barred by Mich. Comp. Laws Sec. 450.1275 The Court agrees with Vault Capital's argument, so Count V must be dismissed, with prejudice The Court must dismiss Count V, with prejudice. And to the extent the declaratory judgment claim in Count III is intended to support Count V, it too must be dismissed, with prejudice. Vault Capital argues that if the Plaintiff's usury counts (Counts IV and V) are dismissed, then the declaratory judgment count (Count III) also must be dismissed, because it is not a stand alone cause of action. The Plaintiff does not dispute this, and the Court agrees with Vault Capital on this point. Because Count III is not a stand-alone count, the Court will dismiss it. A copy of the Court's Opinion and Order dated January 20, 2026, is available at https://urlcurt.com/u?l=Cg5AZJ from PacerMonitor.com. About Heritage Collegiate Apparel Heritage Collegiate Apparel, Inc., serves as the official retailer of the University of Michigan Athletic Department. For more than 20 years, the Debtor has provided a selection of clothing, merchandise and gifts to the University of Michigan. Heritage Collegiate Apparel filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-47922) on Aug. 16, 2024, listing $1 million to $10 million in assets and $10 million to $50 million in liabilities. The petition was signed by Scott Hirth as president. Judge Thomas J. Tucker presides over the case. Kim K. Hillary, Esq., at Schafer and Weiner, PLLC represents the Debtor as legal counsel. On September 3, 2024, the United States Trustee appointed an official committee of unsecured creditors in this Chapter 11 case. The committee tapped Wolfson Bolton Kochis PLLC as counsel and Capstone Partners as financial advisor. HILBERT GROUP: Case Summary & 16 Unsecured Creditors ---------------------------------------------------- Debtor: Hilbert Group LLC Hilbert Group Manager LLC 520 Newport Center Drive, Suite 480 Newport Beach, CA 92660 Business Description: Hilbert Group LLC is a single-asset real estate company with its main property situated at 27415–27535 Jefferson Ave., Temecula, California 92590. Chapter 11 Petition Date: January 20, 2026 Court: United States Bankruptcy Court Central District of California Case No.: 26-10154 Judge: Hon. Mark D. Houle Debtor's Counsel: William J. Wall, Esq. WALL LAW OFFICE 26895 Aliso Creek Rd # B-110 Aliso Viejo CA 92656-5301 Tel: (949) 387-4300 x 105 Email: wwall@wall-law.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Ioannis Xilikakis as manager of Managing Member. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/YNONFHA/Hilbert_Group_LLC__cacbke-26-10154__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 16 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Joses Nuevo Landscaping LLC $47,600 3857 Birch Street Suite 209 Newport Beach, CA 92660 2. Vierergruppe Management Inc. $40,921 1932 East Deere Avenue Suite 150 Santa Ana, CA 92705 Tel: (714) 442-0625 3. WestMar Commercial Brokerage, Inc $11,835 41623 Margarita Road Suite 100 Temecula, CA 92591 Tel: (951) 491-6300 4. Rancho California Water District $11,530 PO Box 512687 Los Angeles, CA 90051-0687 Tel: (951) 296-6930 5. Incorporated, CR&R $10,305 PO Box 7096 Pasadena, CA 91109-9952 Tel: (800) 755-8112 6. Prime Investors Corporation $4,257 P.O.Box 3697 Vista, CA 92085 7. Sain Builders $4,125 147 Hart Bench Rd Darby, MT 59829 8. 4 Seasons Air, Inc. $3,473 8585 Katella Avenue Stanton, CA 90680 Tel: (800) 850-5553 9. Southern California Edison $2,627 P.O. Box 300 Rosemead, CA 91772-0001 Tel: (800) 655-4555 10. Kuri Services LLC $1,680 14817 Janine Dr. Whittier, CA 90605 11. American Jetting Services $990 P.O Box 1699 Ontario, CA 91762 Tel: (800) 538-8426 12. ABC Supply Co. Inc. $677 PO Box Box 748242 Los Angeles, CA 90074-8242 Tel: (608) 368-2562 13. Ramsey Backflow & Plumbing $480 11626 Sterling Ave Suite D Riverside, CA 92503 Tel: (951) 689-4116 14. Alz Electrical and Lighting Service $307 23905 Clinton Keith Rd 114-395 Wildomar, CA 92595 15. Knight Security & Fire Systems $274 2418 Auto Park Way Escondido, CA 92029 Tel: (760) 745-3604 16. Pestgon, Inc. $264 3612 Ocean Ranch Rd Oceanside, CA 92056 Tel: (877) 724-8100 HILLSDALE PALLETS: Unsecureds to Split $60K in Consensual Plan -------------------------------------------------------------- Hillsdale Pallets, LLC filed with the U.S. Bankruptcy Court for the Western District of Michigan a Plan of Reorganization under Subchapter V dated January 15, 2026. The Debtor operates a pallet and packaging business that manufactures and repairs pallets, crates, and skids at 2351 E. Bear Lake Road, Hillsdale, Michigan 49242 (the "Business Premises"). The Debtor supplies pallets and related products primarily to industrial and commercial customers in Michigan and surrounding areas. Debtor leases the Business Premises from its affiliate, WCR Holdings, LLC, which owns the underlying real property. The operations of Debtor and WCR are closely integrated: Hillsdale operates the business; WCR is the real estate holding company. The Debtor acquired substantially all of the assets of a predecessor entity, Hillsdale Pallet, LLC (the "Seller"), through a leveraged transaction that was funded by Byline and other lenders and involved Hillsdale, WCR, and WCR Logistics, LLC as purchasers. Debtor's operations thereafter were impacted by increased costs for raw materials and labor, tightening margins, and increased debt service obligations. To stabilize operations, preserve going-concern value, and propose a structured payment to Byline and other creditors, Debtor filed this Subchapter V case on October 17, 2025, and contemporaneously sought authority to use cash collateral. The Debtor's Cash Flow Projections demonstrate that Debtor can fund the Plan based on: (i) operating income from continued pallet and packaging operations at the Business Premises; and (ii) reasonable reductions in overhead and improved revenue stability under the reorganized capital structure. The Reorganized Debtor shall, through continued operations and, if applicable, recoveries on any Avoidance Actions or other third party claims, make payments to secured, administrative, priority, and unsecured creditors as provided in this Plan. Class 4 consists of all Allowed unsecured non-priority Claims, including, but not limited to, the Byline deficiency claim, Hillsdale Pallet, LLC, ODK, vendors, credit cards, and any nonpriority portions of governmental or equipment claims. Debtor estimates that total General Unsecured Claims may exceed $1,500,000.00, inclusive of the Byline deficiency and subordinated all-asset lenders. Treatment shall depend on whether the Plan is confirmed as "consensual" under Section 1191(a) of the Bankruptcy Code or "non-consensual" under Section 1191(b) of the Bankruptcy Code: * Consensual Plan (Preferred Treatment): If the Plan is confirmed consensually, Debtor shall pay to Class 4 creditors, in the aggregate, the sum of $60,000.00 (the "Consensual Unsecured Base") over a period not to exceed five years from the Effective Date. Payments shall be made in semi-annual installments of at least $6,000.00 each, beginning on the first January 1 or July 1 following the Effective Date, and continuing until the Consensual Unsecured Base has been fully paid. Each Class 4 creditor will receive its pro rata share of each installment based on the ratio of its Allowed Claim to all Allowed Class 4 Claims. * Non-Consensual Plan (Cramdown Treatment): If the Plan is confirmed non-consensually, Debtor shall pay to Class 4 creditors, in the aggregate, the sum of $1,000.00 (the "Non-Consensual Unsecured Base") over the applicable commitment period, funded from Debtor's projected disposable income after accounting for the additional costs of having the Trustee administer distributions under Section 1194(b) of the Bankruptcy Code. Debtor's projected disposable income and the Non-Consensual Unsecured Base shall comply with Sections 1191(c) and 1194 of the Bankruptcy Code. * Additional Distributions from Avoidance Actions and Third Party Claims. Under either consensual or non-consensual confirmation, Class 4 shall also receive: * Pro rata distributions of any net proceeds (after costs and administrative expenses) from Avoidance Actions or third-party claims that Debtor elects to pursue; and * Any additional funds that Debtor voluntarily contributes, including potential refinancing or sale proceeds in excess of amounts necessary to satisfy secured and priority claims. Distributions under the Consensual or Non-Consensual Unsecured Base shall be in addition to any such net recoveries. Class 5 consists of Equity Security Holders. Members' Interests in Debtor shall be retained as part of the reorganization, subject to the Merger and any necessary adjustments in internal ownership percentages. The reorganized equity is expected to have minimal value other than as a source of income from continued operations. Class 5 is unimpaired. All Plan payments shall be funded from: * The Debtor's ongoing operating income as reflected in the Cash Flow Projections; * Net proceeds (if any) from Avoidance Actions or other third-party claims; and * Any refinancing or sale of assets consistent with the Plan. A full-text copy of the Plan of Reorganization dated January 15, 2026 is available at https://urlcurt.com/u?l=1gP1KE from PacerMonitor.com at no charge. Counsel to the Debtors: CBH ATTORNEYS & COUNSELORS, PLLC Michael P. Hanrahan, Esq. 25 Division Ave. S., Suite 500 Grand Rapids, Michigan 49503 Tel.: (616) 608-3061 About Hillsdale Pallets LLC Hillsdale Pallets LLC, formerly FDBA Hillsdale Pallet LLC, manufactures and distributes wooden pallets, custom crating, and shipping boxes, offering services that include ISPM 15-certified heat treatment and reconditioned standard pallets. Based in Hillsdale, Michigan, the company provides custom-size pallets and specialty skids built to client specifications. Its operations focus on pallet production, shipping solutions, and related logistics services. Hillsdale Pallets sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Mich. Case No. 25-02967 on October 71, 2025, listing total assets of $353,531 and total liabilities of $2,215,075. Scott Chernich serves as Subchapter V trustee. Honorable Bankruptcy Judge Scott W. Dales handles the case. The Debtor is represented by Michael P. Hanrahan, Esq., at CBH Attorneys & Counselors, PLLC. HYDE ENVIRONMENTAL: Gets Extension to Use Cash Collateral --------------------------------------------------------- Hyde Environmental, LLC received another extension from the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, to use cash collateral to fund operations. At the January 23 hearing, the bankruptcy court extended the Debtor's authority to use cash collateral through January 27. The Debtor was initially allowed to access cash collateral under the court's January 16 interim order. The initial order granted the Debtor interim approval to use up to $15,000 of post-petition revenue constituting cash collateral to pay pre-bankruptcy wages previously authorized by a court order, post-petition wages, subcontractors, fuel, insurance, and other ordinary-course vendors and operating expenses. Any secured creditor with a valid lien on cash collateral was granted a replacement lien under the initial order as adequate protection. Hyde Environmental filed for bankruptcy on January 8 and continues to operate as an environmental services business with active executory contracts and projects in progress and about to begin. Its operations generate accounts receivable and cash that are essential to fund payroll, taxes, fuel, insurance, equipment use, and subcontractor expenses. A search of the Florida Secured Transaction Registry shows that several parties have filed UCC-1 financing statements claiming liens on the Debtor's accounts, proceeds, or general intangibles, including Essential Funding, Wells Fargo, Ring Investments, Caterpillar Financial Services, Ford Motor Credit, John Deere Financial, and Outback Forestry. However, the Debtor disputes the validity, perfection, extent, and priority of any such liens and reserves all rights to challenge them. As of the petition date, Hyde Environmental held about $29,013 in cash and expects to receive roughly $100,000 in receivables and contract proceeds. The Debtor treats some or all of these funds as potential cash collateral. About Hyde Environmental LLC Hyde Environmental LLC provides a range of environmental services, including hazardous waste management, environmental assessments, and remediation projects. The company serves commercial and industrial sectors with a commitment to regulatory compliance and environmental sustainability. Hyde Environmental LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-00147) on January 8, 2026. In its petition, the Debtor reported assets between $1 million and $10 million and liabilities between $1 million and $10 million. The Debtor is represented by Perry Gruman, Esq., at Gruman Law. ICRYO BRANDS: Seeks Chapter 11 Bankruptcy in Texas -------------------------------------------------- ICryo Brands, LLC, filed for Chapter 11 bankruptcy protection on January 21, 2026, in the Southern District of Texas, initiating a voluntary restructuring proceeding. The company disclosed liabilities of $1 million to $10 million involving 100 to 199 creditors. About ICryo Brands, LLC ICryo Brands, LLC, is a wellness company focused on cryotherapy and recovery-based health services offered through franchised and company-owned centers. The debtor sought relief under Chapter 11 of the U.S. Bankruptcy Code on January 21, 2026, under Case No. 26-90118. Its bankruptcy schedules list assets and liabilities each estimated between $1 million and $10 million. The case is overseen by Honorable Christopher M. Lopez. ICryo Brands, LLC is represented by Vickie L. Driver, Esq., Driver Stephenson, PLLC. IROBOT CORP: Secures Court Approval for Chapter 11 Plan ------------------------------------------------------- Yun Park of Law360 reports that the Delaware Bankruptcy Court on Thursday, January 22, 2026, signed off on a Chapter 11 plan for iRobot Corp., allowing the company to shed $257 million in obligations and emerge under the ownership of its secured creditor. As part of the confirmed restructuring, existing equity will be eliminated, and the secured lender will acquire full ownership of the reorganized business through a credit bid. The company said the plan provides a path forward by strengthening its balance sheet and ensuring sufficient liquidity to support its post-bankruptcy operations, the report states. About iRobot Corp. iRobot Corp. is the manufacturer of Roomba robot vacuums. iRobot Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-12197) on December 14, 2025. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million each. The case is overseen by Honorable Judge Brendan Linehan Shannon. The Debtor is represented byPaul M. Basta, Esq. of Paul, Weiss, Rifkind, Wharton & Garrison. J AND A 5TH AVE: Rental Income & Loan Modification to Fund Plan --------------------------------------------------------------- J and A 5th Ave LLC filed with the U.S. Bankruptcy Court for the District of New Jersey a Disclosure Statement describing Chapter 11 Plan dated January 15, 2026. The Debtor is a holding company for three parcels of real estate. The Debtor's primary asset is the three parcels of real property, located at (1) 476 Summer Street, Paterson, NJ; (2) 178 Fulton Place, Paterson, NJ; and (3) 42 Linn Road, Nutley, NJ, worth a combined estimated $1,000,000.00. The filing of the Debtor's case was precipitated by Debtor falling behind on mortgage payments to the secured creditor, Wilmington Savings Fund Society, triggering a default interest rate of 10%. In turn, the secured creditor initiated a foreclosure action, resulting in a sheriff's sale for the Nutley property. The Debtor has began collecting rent on the Nutley property, and has applied for a loan modification to incorporate the arrears on the Nutley property. Should the loan modification be unsuccessful, Debtor will sell the Nutley property. This is a reorganization plan. In other words, the Proponent seeks to accomplish payments under the Plan from (i) funds on hand in the estate at the time of Confirmation; and (ii) Debtor's quarterly disposable income. The Effective Date of the proposed Plan is thirty days after entry of the order confirming the Plan unless the Plan or confirmation order provides otherwise. Allowed Secured Claims are Claims secured by property of the Debtor's bankruptcy estate (or that are subject to setoff) to the extent allowed as secured Claims under Section 506 of the Code. If the value of the collateral or setoffs securing the Creditor's Claim is less than the amount of the Creditor's Allowed Claim, the deficiency will be classified as a general unsecured Claim; provided, however, that the Debtor may not modify a claim secured by a security interest in real property that is his or her principle residence. The Debtor will surrender the collateral securing the Secured Creditor's Claim on the Effective Date of the Plan. The Confirmation Order shall constitute an order granting relief from the automatic stay permitting the Secured Creditor to possess and dispose of their collateral. Any secured claim is deemed satisfied in full through surrender of the collateral. Any deficiency claim is a general unsecured claim. A Class of secured claims receiving this treatment is not impaired and is not entitled to vote on confirmation of the Plan. There are no general unsecured claims in this case. Class Four consists of the ownership interest of the Debtor in its assets, which are not otherwise abandoned pursuant to the Plan. The ownership interests of the Debtor in its assets shall not be altered as a consequence of the Plan. The Plan will be funded from a combination of (i) rental income and (ii) the loan modification sought by Debtor. The Cash Flow Analysis illustrates the amount of income received from earnings and the resulting disposable income. A full-text copy of the Disclosure Statement dated January 15, 2026 is available at https://urlcurt.com/u?l=IUABHv from PacerMonitor.com at no charge. Counsel for the Debtor: Aiden Murphy, Esq. Scura, Wigfield, Heyer, Stevens & Cammarota LLP 1599 Hamburg Turnpike Wayne, NJ 07470 Telephone: (973) 696-8391 About J and A 5th Ave LLC J and A 5th Ave LLC is a single asset real estate company that owns property at 42 Linn Road in Nutley, New Jersey. J and A 5th Ave LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-15537) on May 27, 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 Stacey L. Meisel handles the case. J. PATRICK LEE: To Sell Komatsu Excavator to Greentek Resources --------------------------------------------------------------- J. Patrick Lee Construction LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Mississippi, to sell Equipment, free and clear of liens, claims, interests, and encumbrances. The Debtor's Equipment that is up for sale is a 2023 Komatsu PC360LC-11 Excavator, Serial No. A39181. The Debtor's decision to liquidate the Equipment is in the best interest of all creditors and parties-in-interest. The purchaser of the Equipment is Greentek Resources LLC with the purchase price of $307,500. The Purchaser is a good faith purchaser and the sale transaction is an arms-length transaction. The Debtor had no prior relationship with the Purchaser. The Debtor seeks to sell the Equipment free and clear of liens, claims, interests, with the valid liens and claims of Komatsu to attach to the sale proceeds. The first, and only, consensual lien is held by Komatsu. The proceeds of the sale will be paid to Komatsu who, as noted, holds the first, and only consensual lien on the Equipment. The remaining proceeds from the sale after payment toward Komatsu's lien, shall be placed in an interest-bearing escrow account by counsel for the Debtor, with the funds to be disbursed only upon further order of the Court, after notice and hearing. About J. Patrick Lee Construction J. Patrick Lee Construction, LLC, based in Picayune, Mississippi, engages in heavy and civil engineering construction projects, including local infrastructure, municipal improvements, and residential site development. The Company participates in public and private construction contracts within Pearl River County and surrounding areas. J. Patrick Lee Construction sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Miss. Case No. 25-51858) on December 10, 2025. In the petition signed by Patrick Lee, owner/managing member, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Katharine M. Samson oversees the case. The Debtor is represented by the Law Offices of Geno and Steiskal, PLLC. JANEP HOLDINGS: Case Summary & Two Unsecured Creditors ------------------------------------------------------ Debtor: Janep Holdings LLC 377 Holden Road Avon, CO 81620 Business Description: Janep Holdings LLC is a real estate company that owns and leases a single property. Chapter 11 Petition Date: January 21, 2026 Court: United States Bankruptcy Court Middle District of Florida Case No.: 26-00223 Judge: Hon. Jacob A Brown Debtor's Counsel: Jeffrey S. Ainsworth, Esq. BRANSONLAW, PLLC 1501 E. Concord Street Orlando, FL 32803 Tel: 407-894-6834 Email: jeff@bransonlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jarek Tadla as member. A full-text copy of the petition, which includes a list of the Debtor's two unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/LUI2CJI/Janep_Holdings_LLC__flmbke-26-00223__0001.0.pdf?mcid=tGE4TAMA JB GROUP: To Sell Construction Biz to Basta Trading for $6.3MM -------------------------------------------------------------- JB Group of LA, LLC, d/b/a Infrastructure Solutions Group, seeks permission from the U.S. Bankruptcy Court for the Middle District of Louisiana, to sell Assets at auction, free and clear of liens, claims, interests, and encumbrances. The Debtor is engaged in the business of construction and electrical and instrumentation and communications services in the public and private sectors. The Debtor employs Prichard Energy Advisors LLC and Mensura Securities LLC as its investment banker. The Purchased Assets are composed of all accounts receivable, contracts, leases, equipment, any permits and intellectual without limitation. The Debtor entered into an Asset Purchase Agreement with Basta Trading Limited Inc., a Louisiana Corporation, to purchase the Assets. The Purchase price is expected to equal roughly $6,318,506.15. The remainder of the Purchase Price, and in no case less than the sum of $1,400,000 shall be paid in cash to the Debtor in unencumbered funds at Closing. The Purchaser has delivered to the Seller funds in the amount of 10% of the Purchase Price, to be held and disbursed pursuant to the Agreement. To the extent Purchaser is designed as the Winning Bidder, the Closing shall take place through the offices of the counsel for Seller, no later than February 24, 2026 or such later date as may be authorized by the Bankruptcy Court. If Purchaser, in an effort to become the "Winning Bidder" and acquire the Purchased Assets submits one or more bids at the Auction contemplated in the Bidding Procedures Order in excess of the Purchase Price set forth herein, the Purchase Price for the Purchased Assets shall be automatically increased and shall be the amount of the highest, final, approved bid submitted, and the terms of this Agreement shall be automatically deemed amended to reflect same, with no further action or modification. About JB Group of LA, LLC d/b/a Infrastructure Solutions Group JB Group of LA LLC, doing business as ISG Infrastructure Group, provides electrical, instrumentation, communications, and renewable energy solutions to public and private sector clients, including the U.S. Army Corps of Engineers, military installations, state departments of transportation, and industrial customers in data, energy, and manufacturing sectors. JB Group of LA LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. La. Case No. 25-10807) on September 12, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $10 million and $50 million. The Debtor is represented by Paul Douglas Stewart, Jr., Esq. at Stewart Robbins Brown & Altazan, LLC. KULA GRAIN: Files Amendment to Disclosure Statement --------------------------------------------------- Kula Grain Co., Inc. d/b/a Kula Grain Company submitted a First Amended Disclosure Statement describing First Amended Plan of Reorganization dated January 15, 2026. Since filing for Chapter 11 in April of 2025, the Debtor has focused less on the commodities portion of its business and has worked to diversify its business into other areas to account for shortfalls caused by the Texas drought. Following Confirmation of the Plan, the Debtor intends to continue operating its business at both locations, which shall provide the income necessary to fund the Plan. In particular, the Debtor contemplates that it will establish a Plan Payment Fund to fund the Plan as to Allowed Unsecured Claims, in addition to ongoing payments to Allowed Secured Claims. With respect to Allowed Secured Claims, upon the Effective Date of the Plan, Debtor shall begin monthly payments to the holders of Secured Claims in Classes 1, 2 and 3. With respect to Allowed Unsecured Claims, upon the Effective Date of the Plan, and once Debtor obtains a Working Capital Reserve of $300,000.00, the Debtor shall make annual payments into the Plan Payment Fund, with such accounts being governed by the requirements of Section 345 of the Bankruptcy Code. These accounts shall be escrowed and segregated from all other accounts held or created by Debtor. Until such time as all Unsecured claims are determined by a Final Order or a settlement approved by a Final Order of the Court, the Plan Payment Fund will accrue interest and remain segregated. The Debtor's projections show an accumulated disposable income available to pay Allowed Unsecured Claims in the total amount of approximately $171,581.00 over the five-year Plan period. This amount shall be paid pro rata to Unsecured Creditors with Allowed Claims in Class 4. The projections also demonstrate the ability to pay the Secured Creditors in Classes 1, 2 and 3, plus administrative and priority claims. Asa Carpenter, as owner of the Debtor, will continue to be paid a salary in the ordinary course of business in the amount of $8,000.00 per month, as reflected by the projections. He will also be paid an additional $8,000.00 per month by virtue of the Carpenter Lease and will, as minority shareholder of Overdrive, potentially be paid a portion of the $16,500.00 in the monthly equipment rent paid to Overdrive. He will not be afforded any additional distributions as part of the Plan. Class Four consists of allowed Unsecured Claims against the Debtor and the Claims that are deemed allowed by a Final Order. The unsecured creditors shall receive annual payments once per year on the anniversary of the Confirmation Order, pro rata over the Plan term of five years from Net Income in amounts not to exceed allowed claims. Payments shall only be made if there is Net Income available as defined in the Plan. Notwithstanding the foregoing or anything to the contrary herein, the Debtor, in its sole discretion, may pay the claims in Class Four in full at any time prior to the end of the Plan. Class Four is Impaired under the Plan. Allowed Unsecured Claims total $4,680,110.41. The Debtor will continue to operate its business. The Debtor will make monthly payments to holders of claims in Classes One through Three as stated herein, as well as priority Claims and administrative Claims. The Debtor's Net Income shall be used to pay holders of Allowed Unsecured Claims from the Plan Payment Fund as stated herein. The Debtor projects that the Plan of Reorganization described herein and in the Debtor's Plan will significantly increase the value of its operations and Assets, allow it to successfully reorganize, and provide payment to all legitimate creditors, with regard to unsecured creditors pro rata on their allowed claims. A full-text copy of the First Amended Disclosure Statement dated January 15, 2026 is available at https://urlcurt.com/u?l=oPGjgr from PacerMonitor.com at no charge. Kula Grain Co. Inc. is represented by: Jeffrey A. Weinman, Esq. Bailey C. Pompea, Esq. Allen Vellone Wolf Helfrich & Factor P.C. 1600 Stout Street, Suite 1900 Denver, CO 80202 Tel: (303) 534-4499 Email: JWeinman@allen-vellone.com Email: BPompea@allen-vellone.com About Kula Grain Co. Inc. Kula Grain Co. Inc. is a Fort-Morgan, Colorad-based grain merchant and interstate freight carrier that hauls dry-bulk farm commodities. Kula Grain Co. Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 25-12338) on April 22, 2025. In its petition, the Debtor estimated assets and liabilities between $1 million and $10 million. Bankruptcy Judge Joseph G. Rosania Jr. handles the case. The Debtor is represented by Jeffrey A. Weinman, Esq. at ALLEN VELLONE WOLF HELFRICH & FACTOR, P.C. LANGUAGE KIDS: Gets Interim OK to Use Cash Collateral ----------------------------------------------------- Language Kids Houston, LLC received interim approval from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to use cash collateral to fund operations. The court authorized the Debtor to use cash collateral through February 23 to pay business expenses in accordance with its budget. As adequate protection, secured creditors including the U.S. Small Business Administration, ODK Capital, LLC, Expansion Capital Group, LLC, and any other lender with a valid lien and security interest in the collateral owned by the Debtor will continue to have the same liens, encumbrances and security interests in post-petition cash collateral. In addition, the Debtor will keep the collateral insured as further protection. A final hearing is set for February 23. The interim order is available at https://is.gd/h6Jrns from PacerMonitor.com. Language Kids Houston filed its voluntary petition on January 7 and is operating as a debtor-in-possession providing immersive foreign language classes, tutoring, and camps for children at its Houston Heights location and in schools and daycare settings. The Debtor's primary secured creditor is the SBA, which holds a first-priority lien on the Debtor's inventory, personal property, and accounts pursuant to a UCC filing from May 2020 that has been continued. Other lenders, including OnDeck Capital, Expansion Capital Group, and Everest Business Funding, are described as having asserted security interests with extremely high interest rates ranging from roughly 47% to over 120% annually, which the Debtor characterizes as unconscionable and, in Everest's case, unperfected due to the absence of a UCC filing. The Debtor asserts that the SBA is the only creditor with a properly perfected lien and a legitimate interest in the cash collateral. About Language Kids Houston LLC Language Kids Houston, LLC, doing business as Language Kids World, provides language education and immersion programs for children in Houston, Texas, offering classes, camps, and virtual instruction designed to develop fluency, cultural awareness, and confidence in foreign languages across public, school-based, dual-language, and International Baccalaureate (IB) learning environments. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 26-30176) on January 7, 2026. In the petition signed by Vanessa Simpson, as sole member and president, the Debtor disclosed up to $50,000 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. LAUNDROMAT OF NEVADA: Has Deal on Cash Collateral Access -------------------------------------------------------- Laundromat of Nevada, LLC, Countrywide Clean LLC, and Dexter Financial Services, Inc. advise the U.S. Bankruptcy Court for the District of Nevada that they have reached an agreement regarding the use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. Laundromat of Nevada operates two laundromat locations in Las Vegas, Nevada, and has been in business since 2020. The Debtor has reached an agreement with Dexter, the primary secured creditor holding perfected first-priority security interests in substantially all its assets, including equipment, accounts, and general intangibles, securing two loans totaling $825,677, with interest at 8.39%. The parties agree that the Debtor may use cash collateral from post-petition operations to continue business operations while making regular adequate protection payments to Dexter. Dexter will receive a replacement lien on all post-petition collateral and that the Debtor will continue making installment loan payments under the original loan agreements. The Debtor acknowledges the validity and perfection of Dexter's security interests and commits to incorporating these protections into any plan of reorganization. The agreement also clarifies that Dexter retains the right to seek additional adequate protection in the future and that neither party's rights regarding the treatment of claims or adequacy of protection are waived. The Debtor emphasizes that using the cash collateral is necessary to preserve and operate its business, generate revenue, and continue making payments to Dexter, and requests that the court approve the stipulation to allow uninterrupted operations. A court hearing is scheduled for February 11. A copy of the motion is available at https://urlcurt.com/u?l=ELfdlr from PacerMonitor.com. About Laundromat of Nevada LLC Laundromat of Nevada LLC, doing business as 24 Hour Laundromat Lavanderia and Laundromat Lavanderia, operates a self-service retail laundromat providing washing and drying services. The Las Vegas, Nevada-based company serves local residential customers and operates in the drycleaning and laundry services industry. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Nev. Case No. 25-17794) on December 23, 2025, with $1 million to $10 million in assets and liabilities. Tim Madsen, managing member, signed the petition. Judge August B. Landis presides over the case. Brett A. Axelrod, Esq. at Fox Rothschild, LLP represents the Debtor as legal counsel. LAZY T TIRE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Lazy T Tire & Implement, LLC d/b/a Lazy T Trailer Sales 241 Harrison St Orchard, NE 68764 Business Description: Lazy T Tire & Implement, LLC, doing business as Lazy T Trailer Sales, sells and services tires, trailers, and related equipment serving Orchard, Nebraska, and the surrounding area. Chapter 11 Petition Date: January 23, 2026 Court: United States Bankruptcy Court District of Nebraska Case No.: 26-40073 Debtor's Counsel: Galen E. Stehlik, Esq. STEHLIK LAW FIRM, P.C., L.L.O. 724 W Koenig St Grand Island, NE 68801 Tel: (308) 675-4035 Fax: (308) 675-4038 E-mail: galen.stehlik@stehliklawfirm.com Total Assets: $2,467,365 Total Liabilities: $1,001,576 The petition was signed by Timothy Twibell as owner and member. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/75KEZTA/Lazy_T_Tire__Implement_LLC__nebke-26-40073__0001.0.pdf?mcid=tGE4TAMA LAZY T TIRE: Seeks Subchapter V Bankruptcy in Nebraska ------------------------------------------------------ On January 23, 2026, Lazy T Tire & Implement, LLC, filed for Chapter 11 protection in the District of Nebraska. According to court filings, the Debtor reports between $1 million and $10 million in debt owed to its creditors. About Lazy T Tire & Implement, LLC Lazy T Tire & Implement, LLC is a Nebraska-based agricultural services company specializing in tire sales, equipment, and farm implement services for agricultural and commercial customers. Lazy T Tire & Implement, LLC sought relief under Subchapter V o Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-40073) on January 23, 2026. In its petition, the Debtor reports estimated assets of $1 million-$10 million and estimated liabilities of $1 million-$10 million. Honorable Chief Bankruptcy Judge Brian S. Kruse handles the case. The Debtor is represented by Galen E. Stehlik, Esq., Stehlik Law Firm PC LLO. LEHMAN BROTHERS: U.S. Bank Wins Bid to Dismiss O'Hara Case ---------------------------------------------------------- Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York granted the motion of U.S. Bank National Association, as Trustee for the Lehman XS Trust 2006-12N, seeking the dismissal of pro se plaintiff Edward O'Hara's first amended complaint in the adversary proceeding captioned as EDWARD O'HARA, Plaintiff, v. U.S. BANK NAT'L ASS'N, AS TRUSTEE FOR THE LEHMAN XS TRUST 2006-12N, Defendant, Adv. Pro. No. 24-04034 (MG) (Bankr. S.D.N.Y.). The motion is dismissed with prejudice under Rule 12(b)(6) because the claims of fraud are time-barred. On May 6, 2006, nonparty Francis O'Hara ("Francis") executed a promissory note in the principal amount of $695,900 in favor of MortgageIt, Inc., U.S. Bank's predecessor-in-interest. On that same date, O'Hara and Francis executed a mortgage in favor of Mortgage Electronic Registration Systems, Inc. as nominee for MortgageIt, and pledged the property located at 1414 King Street, Greenwich, Connecticut 06831 ("Connecticut Property") as security for the loan. The note and mortgage were ultimately assigned to U.S. Bank. O'Hara contends that this assignment was "fraudulent and invalid." Francis and O'Hara failed to make payments on the mortgage. U.S. Bank first filed suit ("First Foreclosure Action") against O'Hara on or around October 11, 2011, in Connecticut Superior Court, and O'Hara paid $137,657.64 in 2012 to settle the issue and temporarily avoid foreclosure. O'Hara claims that this money was not sent by U.S. Bank to the Trustee in the Lehman Brothers bankruptcy. U.S. Bank commenced a second foreclosure action ("Second Foreclosure Action") against O'Hara in the Connecticut Superior Court on September 30, 2013. On December 14, 2015, the Connecticut Superior Court granted U.S. Bank's motion for judgment of foreclosure and sale. The Foreclosure Judgment continues to stand, albeit updated in 2024 to accurately reflect the amount owed. O'Hara filed his Complaint against U.S. Bank on October 31, 2024, on the same day that the adversary proceeding commenced. Counts 1 and 2 of the Amended Complaint are as follows: 1. Count 1: Damages from Intentional Material Misrepresentation and Fraud Upon the Court Related to First Foreclosure Action The Plaintiff claims that the Connecticut State court lacked jurisdiction over the First Foreclosure Action, a fact that U.S. Bank ignored when they moved forward with litigation as part of "material misrepresentation and fraud upon the court." The Plaintiff argues that one of Judge Peck's (unspecified) orders in the main Lehman bankruptcy case gave this Court exclusive jurisdiction over "all foreclosures of loans in Lehman Trust which were part of the Lehman Bankruptcy." 2. Count 2: Damages from intentional material misrepresentation and fraud upon the court related to Second Foreclosure Action The Plaintiff makes the same arguments pertaining to the Second Foreclosure Action. The Plaintiff states that in filing the Second Foreclosure Action in Connecticut, U.S. Bank caused the Plaintiff to defend this case with an expert securities law attorney, other attorneys, third party research persons, and to incur excessive mailing costs document production costs and travel expense in an amount, all totaled, of approximately $80,000, in addition to largely defending the case by himself for 13 years, causing tremendous emotional distress. The Plaintiff states a claim for $80,000 plus interest, over eleven years as actual damages and for $5 million as total punitive damages "for defending a case in a court without jurisdiction, and all other damages." Motion to Dismiss U.S. Bank moves to dismiss the Complaint under FED. R. CIV. P. 12(b)(1) and 12(b)(6). U.S. Bank argues the following: 1. The Bankruptcy Court lacks subject matter jurisdiction, as the Rooker-Feldman doctrine provides that federal courts cannot act as courts of appeal from state court decisions. 2. The Bankruptcy Court lacks subject matter jurisdiction under 28 U.S.C. Sec. 1334(b). 3. O'Hara's claims fail as a matter of law because of res judicata. 4. The claims are time-barred. 5. O'Hara fails to plead that U.S. Bank is a debt collector as defined by the FDCPA. The Bankruptcy Court finds U.S. Bank has shown that the Plaintiff's Amended Complaint should be dismissed under Rule 12(b)(6) because it is time-barred. The First Foreclosure Action was filed in Connecticut Superior Court on October 11, 2011, and the Second Foreclosure Action was filed on September 30, 2013. Judgement was entered December 14, 2015. Almost nine years passed before the Plaintiff commenced this adversary proceeding on October 31, 2024. Even if the Bankruptcy Court were to accept that any misrepresentations regarding the exclusive jurisdiction of this Court were made to the Connecticut Superior Court (which remains questionable), the Plaintiff's fraud claims could not have accrued after the Judgement was entered. As such, the claims are time-barred. Additionally, the Plaintiff has not provided evidence of fraudulent concealment to toll the statute of limitations. The Plaintiff did not submit any evidence supporting the contention that the defendant fraudulently concealed the bankruptcy proceedings or Judge Peck's alleged order granting the Bankruptcy Court exclusive jurisdiction over foreclosures. A copy of the Court's Memorandum Opinion and Order dated January 22, 2026, is available at https://urlcurt.com/u?l=3XbAuL from PacerMonitor.com. Attorneys for Defendant U.S. Bank, as Trustee for the LXS 2006-12N: Sherry Xia, Esq. HINSHAW & CULBERTSON LLP 800 Third Avenue, 13th Floor New York, NY 10022 About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy on Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil Gotshal & Manges, LLP, in New York, represent Lehman. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. Epiq Bankruptcy Solutions serves as claims and noticing agent. xxx On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman mad its first payment to creditors under its $65 billion payout plan in April 2012. LEV DIAGNOSTICS: Section 341(a) Meeting of Creditors on February 23 ------------------------------------------------------------------- On January 14, 2026, Lev Diagnostics Inc. filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Illinois. According to court filings, the debtor reports between $100,001 and $1 million in liabilities owed to 1–49 creditors. A meeting of creditors under Section 341(a) to be held on February 23, 2026 at 01:00 PM at Appear by Teams. Meeting ID: 992 286 825 557; Passcode: Gd3DU7E5 About Lev Diagnostics Inc. Lev Diagnostics Inc., a medical diagnostics company headquartered in Illinois. Lev Diagnostics, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 26-00584) on January 14, 2026, with up to $50,000 in assets and $100,001 to $500,000 in liabilities. John H. Redfield, Esq., at Crane, Simon, Clar & Goodman represents the Debtor as legal counsel. LINQTO INC: Creditors Say Chapter 11 Plan Docs Lack Vital Info -------------------------------------------------------------- Vince Sullivan of Law360 Bankruptcy Authority reports that The lead plaintiffs in a proposed class action against the former CEO of startup investment platform Linqto Texas objected late Wednesday to the company's proposed Chapter 11 plan, telling a Texas bankruptcy court that the disclosure materials omit critical details. The objectors said the plan fails to adequately explain what assets will be available for distribution to general unsecured creditors. According to the filing, the plaintiffs argue that without clearer information about the debtor's assets and potential recoveries, creditors cannot meaningfully evaluate the proposed restructuring. They urged the court to require additional disclosures before allowing the plan to move forward. 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 Kristen L. Perry, Esq., at Faegre Drinker Biddle & Reath, LLP, in Dallas, Texas; Richard J. Bernard, Esq., at Faegre Drinker Biddle & Reath, LLP, in New York; and Michael R. Stewart, Esq., and Adam C. Ballinger, Esq., at Faegre Drinker Biddle & Reath, LLP, in Minneapolis, Minnessota. Sandton may also be reached through Robert Rice, Esq. LUTHERAN HOME: Unsecureds Will Get 30% to 41% of Claims in Plan --------------------------------------------------------------- Lutheran Home and Services for the Aged, Inc., and affiliates submitted a Second Amended Disclosure Statement describing Second Amended Joint Plan of Reorganization dated January 14, 2026. The Debtors believe that the approval and implementation of the Plan is in the best interests of the Debtors' Estates and all interested parties. Class 7A consists of General Unsecured Claims against the Obligated Group Debtors. The allowed unsecured claims total $2,815,775. This Class will receive a distribution of 30% to 41% of their allowed claims. Class 7A is Impaired and entitled to vote on the Plan. This Class consists of all General Unsecured Claims against Obligated Group Debtors. Each Holder of a Class 7A claim shall receive its Pro Rata share of the General Unsecured Trust Interests to be distributed upon the terms and in accordance with the Unsecured Creditor Trust Agreement. Class 7B consists of General Unsecured Claims against the Non-Obligated Group Debtors. The allowed unsecured claims total $32,425. This Class will receive a distribution of 100% of their allowed claims. Class 7B is Unimpaired and not entitled to vote on the Plan. This Class consists of all General Unsecured Claims against Non-Obligated Group Debtors. On the Effective Date (or as soon thereafter as practicable), each Holder of a Class 7B claim shall receive payment in Cash in the amount of its Allowed General Unsecured Claim Against Non-Obligated Group Debtors. The Debtors and the Reorganized Debtors, as applicable, shall fund distributions under the Plan with Cash on hand, and such funds released from the Entrance Fee Escrow pursuant to the Plan. With respect to the Entrance Fee Escrow, and as more fully described in Article 4.1(e)(ii), prior to and during these Chapter 11 Cases, new prospective Residents were permitted to pay an Option Deposit into the Escrow Account pursuant to an Option Agreement. The funds held by the Escrow Agent are not property of the Debtors and each Resident that is a party to the Option Agreement (an Option Agreement Party) has the opportunity to seek the return of their funds prior to the occurrence of a Termination Event. On the Effective Date, and contemporaneously with the execution of the Series 2026 Bonds, LLCF shall enter into a liquidity support agreement providing for, among other customary terms, a funded liquidity support facility for the benefit of the Lutheran Life Obligated Group in the amount of $2,000,000. LLCF will further commit to invest additional resources, as deemed necessary by the board of the LLCF, to support the growth initiatives of the Obligated Group Debtors, including, without limitation, development of cottages at certain of the Communities. For the avoidance of doubt, none of the assets of the LLCF, including any and all investment accounts, shall be collateral securing the Series 2026 Bonds. Upon the Effective Date, the Unsecured Creditor Trust will be formed, into which the Unsecured Creditor Trust Assets shall be transferred. For the avoidance of doubt, any claims the Debtors may have against Master Trustee, ONB, or any holder of the Series 2019 Bonds will be released and will not be included among the Retained Causes of Action that are transferred to the Unsecured Creditor Trust. For the further avoidance of doubt, as of the date hereof, the Debtors are unaware of any such claims against the Master Trustee, ONB, or any holders of the Series 2019 Bonds. A full-text copy of the Second Amended Disclosure Statement dated January 14, 2026 is available at https://urlcurt.com/u?l=SesdGN from Stretto, claims agent. Counsel to the Debtors: Stephen D. Lerner, Esq. SQUIRE PATTON BOGGS (US) LLP 201 E. Fourth St., Suite 1900 Cincinnati, OH 45202 Tel: (513) 361-1200 Fax: (513) 361-1201 E-mail: stephen.lerner@squirepb.com - and - Jeffrey R. Rothleder, Esq. 2550 M Street, NW Washington, DC 20037 Tel: (202) 457-6000 Fax: (202) 457-6315 E-mail: jeffrey.rothleder@squirepb.com - and - Maura P. McIntyre, Esq. 1000 Key Tower 127 Public Square Cleveland, OH 44114 Tel: (216) 479-8715 Fax: (216) 479-8780 E-mail: maura.mcintyre@squirepb.com - and - David A. Agay, Esq. Marc Carmel, Esq. Nicholas M. Miller, Esq. Maria G. Carr, Esq. Ashley Jericho, Esq. MCDONALD HOPKINS LLC 300 North LaSalle Street, Suite 1400 Chicago, Illinois 60654 Tel: (312) 280-0111 E-mail: dagay@mcdonaldhopkins.com mcarmel@mcdonaldhopkins.com nmiller@mcdonaldhopkins.com mcarr@mcdonaldhopkins.com ajericho@mcdonaldhopkins.com About Lutheran Home and Services for the Aged Lutheran Home and Services for the Aged, Inc., is a non-profit, mission-driven community offering a range of services including assisted living, memory care, skilled nursing, and short-term rehabilitation, along with extensive outpatient rehabilitation therapy. Lutheran Home and its affiliates filed Chapter 11 petitions (Bankr. N.D. Ill. Lead Case No. 25-01705). At the time of the filing, Lutheran Home reported between $100 million and $500 million in both assets and liabilities. The Debtors tapped Squire Patton Boggs (US), LLP as bankruptcy counsel; McDonald Hopkins, LLC as Illinois counsel; and one point Partners, LLC, as financial advisor. Stretto is the claims, noticing, solicitation, balloting, and tabulation agent. MAIN STREET DELI: Seeks Chapter 7 Bankruptcy in Massachusetts ------------------------------------------------------------- On January 14, 2026, Main Street Deli, LLC filed for Chapter 7 protection in the U.S. Bankruptcy Court for the District of Massachusetts. According to court filings, the Debtor reports between $100,001 and $1,000,000 in debt owed to 1–49 creditors. About Main Street Deli, LLC Main Street Deli, LLC operates a neighborhood delicatessen offering prepared foods, sandwiches, and catering services. Main Street Deli, LLC sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. Case No. 26-10086) on January 14, 2026. In its petition, the Debtor reports estimated assets of $0–$100,000 and estimated liabilities of $100,001–$1,000,000. Honorable Bankruptcy Judge Christopher J. Panos handles the case. The Debtor is represented by Marques C. Lipton, Esq., of Lipton Law Group. MANAGEMENT MCOA: Seeks to Use $1.67MM in Cash Collateral -------------------------------------------------------- 369 Albuquerque Ops, LLC, an affiliate of Management MCOA, LLC, asks the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, for authority to use cash collateral. The company operates Princeton Health and Rehabilitation, a 369-bed skilled nursing facility in Albuquerque, New Mexico, that provides short-term rehabilitation, long-term nursing care, memory care, and related services to approximately 360 patients. 369 Albuquerque Ops needs immediate access to cash collateral under a court-approved budget to maintain operations and continuity of care for hundreds of vulnerable patients. It requires access to approximately $1.673 million in cash collateral to sustain its operations pending a final hearing. The lenders have consented to the Debtor's use of cash collateral so long as they receive adequate protection. 369 Albuquerque Ops filed for Chapter 11 protection on January 6 while its affiliate, Management MCOA, filed its Chapter 11 petition on December 23, 2025. Both continue to operate as debtors-in-possession. Pre-bankruptcy financing consists of a $44 million senior mortgage loan from DMT ACG, LLC; a $4 million junior mortgage loan from Greenline CDF XLV, LLC; and a revolving accounts receivable facility of up to $5 million (with a $4.05 million balance as of the petition date) from ONB DHF I, LLC, as assignee of DMT HCR I, LLC. The pre-bankruptcy lenders hold perfected liens on the facility's real estate, leases and rents, and substantially all of 369 Albuquerque Ops' personal property, including accounts receivable, equipment, inventory, and deposit accounts, with priorities governed in part by an intercreditor agreement. Because the Debtor's revenues are subject to these liens, the cash it generates constitutes cash collateral that cannot be used without lender consent or court authorization. A copy of the motion is available at https://urlcurt.com/u?l=CaQc6P from PacerMonitor.com. About Management MCOA LLC Management MCOA, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 25-25184) on December 23, 2025. In its petition, the Debtor listed between $50,001 and $100,000 in both assets and liabilities. Judge Erik P. Kimball handles the case. The Debtor is represented by Jordi Guso, Esq., at Berger Singerman, LLP. MARINER'S GATE: Lender Seeks to Prohibit Cash Collateral Access --------------------------------------------------------------- JPMorgan Chase Bank, N.A., as successor to First Republic Bank through the FDIC, asks the U.S. Bankruptcy Court for the Southern District of New York to prohibit Mariner's Gate, LLC from using cash collateral. Mariner's Gate filed for bankruptcy on December 16, 2025, one day before a scheduled foreclosure sale on its Manhattan commercial loft property at 548 West 28th Street, which was meant to enforce a foreclosure judgment exceeding $40 million. The Debtor had not made mortgage payments for over two years, and JPMorgan now asserts a senior secured claim of more than $42.8 million, backed by a first-priority mortgage and assignment of rents. Despite having ample notice, the Debtor did not negotiate cash collateral use before filing and failed to file a timely motion to authorize such use but still used at least $80,000 of JPMorgan's cash collateral post-petition without permission. JPMorgan also alleges serious transparency failures, including unapproved intercompany loans to affiliates, undisclosed third-party bank accounts, failure to file a statement of financial affairs, and a proposed budget that understates rental income, inflates payroll and management fees, and does not properly provide for real estate taxes. JPMorgan argues that under the Bankruptcy Code the Debtor cannot use cash collateral without consent or court order and must provide adequate protection to prevent erosion of the bank's collateral position. A court hearing is set for February 5. A copy of the motion is available at https://urlcurt.com/u?l=sQqBXx from PacerMonitor.com. About Mariner's Gate LLC Mariner's Gate, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. N.Y. Case No. 25-12819) on December 16, 2025, listing between $50 million and $100 million in both assets and liabilities. James Y.A. Pastreich, president and director, signed the petition. Judge Philip Bentley oversees the case. Kevin Nash, Esq., at Goldberg Weprin Finkel Goldstein LLP, represents the Debtor as legal counsel. JPMorgan Chase Bank, N.A., as lender, is represented by: Theresa A. Foudy, Esq. Justin Young, Esq. Miranda K. Russell, Esq. Morrison & Foerster, LLP 250 West 55th Street New York, NY 10019 Telephone: (212) 468-8000 Facsimile: (212) 468-7900 tfoudy@mofo.com justinyoung@mofo.com mrussell@mofo.com MAXIMUS SUPPLY: Court OKs Continued Access to Cash Collateral ------------------------------------------------------------- Maximus Supply Chain Holdings, LLC and its affiliates received 11th interim approval from the U.S. Bankruptcy Court for the Northern District of Indiana, Hammond Division at Lafayette, to continue to use cash collateral. The 11th interim order authorized the Debtors to use cash collateral for operating expenses in accordance with their budget, subject to a 10% variance. The Debtors' budget shows projected expenses of $45,463 for the week ending January 30; $176,623 for the week ending February 6; $45,463 for the week ending February 13; $39,115 for the week ending February 20; $45,463 for the week ending February 27. A status conference on further cash use is scheduled for February 10. The Debtors' relationship with their primary lender negatively impacted their liquidity. The lender cut off access to credit-line advances and then took unlawful actions against the Debtors. The Debtors estimate $10,217,941.46 in short-term debt and $25,186,734.16 in long-term debt, with approximately $35,587,571.33 in secured and $6,402,648.39 in unsecured obligations. About Maximus Supply Chain Holdings Maximus Supply Chain Holdings, LLC develops innovative solutions and products servicing a variety of industries including automotive, commercial vehicle, agricultural equipment, RVs, and power manufacturing industries. Maximus and its affiliates filed their voluntary petitions for Chapter 11 protection (Bankr. N.D. Ind. Lead Case No. 24-40167) on June 25, 2024. At the time of the filing, Maximus reported up to $50,000 in both assets and liabilities. Sam Bazzi, president and chief executive officer of Maximus, signed the petitions. Judge Robert E. Grant oversees the cases. The Debtor is represented by: Sarah L. Fowler, Esq. Blackwell, Burke & Ramsey, P.C. Tel: 317-533-7869 Email: sfowler@bbrlawpc.com MBK HOLDINGS: Gets Interim OK to Use Cash Collateral ---------------------------------------------------- MBK Holdings, Inc. got the green light from the U.S. Bankruptcy Court for the Northern District of Indiana, South Bend Division, to use cash collateral to fund operations. The court issued an interim order authorizing the Debtor to use cash collateral through January 29 pursuant to its budget, with up to a 15% variance. Under the interim order, the Debtor is authorized to maintain minimum cash collateral of $75,000; deposit all receipts into a debtor-in-possession account; and provide weekly financial reporting to Old National Bank, a senior secured creditor. Old National Bank asserts a first-priority perfected security interest in substantially all of the Debtor's assets, including cash collateral, securing debt of $832,386.90. As adequate protection, Old National Bank will receive payment of $20,925.62 and replacement liens, with the same validity and priority as its pre-bankruptcy liens. A final hearing is set for January 29, with objections due by January 28. The interim order is available at https://is.gd/iLRyiS from PacerMonitor.com. MBK Holdings said it cannot pay essential post-petition expenses such as taxes and insurance without access to cash collateral The Debtor's bank accounts have been frozen because of litigation with Harold and Carole Bailey, leaving it unable to access about $163,030 in cash and $20,000 in inventory that qualify as cash collateral under the Bankruptcy Code. Old National Bank, as secured creditor, is represented by: Meredith R. Theisen, Esq. Rubin & Levin, P.C. 135 N. Pennsylvania St., Suite 1400 Indianapolis, IN 46204 Tel: (317) 860-2877 Fax: (317) 263-9410 mtheisen@rubin-levin.net About MBK Holdings Inc. MBK Holdings, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ind. Case No. 25-31964) on December 15, 2025, with $500,001 to $1 million in assets and liabilities. Daniel Freeland serves as Subchapter V trustee. Judge Paul E. Singleton presides over the case. John R. Humphrey, Esq. represents the Debtor as legal counsel. MEHRI AKHLAGHPOUR: Can Continue Malpractice Suit v. Ex-Counsel -------------------------------------------------------------- In the appeal styled MEHRI AKHLAGHPOUR, Appellant v. GIOVANNI ORANTES; LUIS SOLORZANO; ORANTES LAW FIRM, Appellees, No. 24-2625 (9th Cir.), Judges Scott H. Rash, Kim McLane Wardlaw and Anthony D. Johnstone of the United States Court of Appeals for the Ninth Circuit: (1) reversed the Bankruptcy Appellate Panel's decision reversing the bankruptcy court's order granting a debtor's motion for leave to continue prosecuting an ongoing state court legal malpractice suit against her former bankruptcy counsel; (2) vacated the bankruptcy court's order in part; and (3) remanded with instructions to the bankruptcy court. This appeal arose following Debtor Mehri Akhlaghpour's success in obtaining leave of the bankruptcy court to continue, rather than begin, an ongoing legal malpractice suit in state court against her former bankruptcy attorney, Giovanni Orantes, and his firm (collectively, "Orantes" or "Appellees"). On October 11, 2017, Akhlaghpour filed a voluntary Chapter 11 petition through Orantes as her counsel. The bankruptcy court approved Orantes as counsel for the estate effective as of the petition's filing. Due to suspicions regarding the timing of liens recorded against Akhlaghpour's properties, on February 4, 2018, the bankruptcy court appointed a trustee who immediately sought to liquidate Akhlaghpour's properties. Two months later, after some properties had been sold by the trustee, Orantes moved to dismiss the petition. The bankruptcy court denied the motion on May 15, 2018, in part due to the expense already incurred to liquidate the properties. On December 27, 2019, Akhlaghpour sued Orantes in the Los Angeles County Superior Court ("superior court") for legal malpractice related to her bankruptcy. She later filed a First Amended Complaint. Orantes moved to dismiss the complaint on three grounds: the Barton doctrine, res judicata based on approval of the fee application, and Akhlaghpour's lack of standing because the claims belonged to the bankruptcy estate. The superior court granted the motion without leave to amend and dismissed the action "solely based upon the Barton doctrine." The California Court of Appeal for the Second District of California reversed in part and affirmed in part. On February 2, 2023, the bankruptcy court reopened Akhlaghpour's case upon her motion. Soon thereafter, she filed a motion under Barton seeking authorization "to continue her prosecution of the pending" superior court action. During the hearing, the bankruptcy court heard from the parties and found there was a prima facie case sufficient to support its Barton approval. Accordingly, the bankruptcy court granted in part and denied in part the Barton motion, consistent with its tentative ruling on the appropriate timeframes. Orantes appealed to the Bankruptcy Appellate Panel ("BAP"). In a split decision, the BAP vacated the bankruptcy court's order and remanded with instructions for the bankruptcy court to dismiss the Barton motion for lack of jurisdiction. The BAP majority concluded "the bankruptcy court authorized the continued litigation of claims that had previously been dismissed." Specifically, the majority reasoned the bankruptcy court's order violated the RookerFeldman doctrine because it "reversed, modified, or at least, ignored" the Court of Appeal and superior court rulings. The BAP dissent concluded that granting leave under Barton can never violate the Rooker-Feldman doctrine. After the BAP denied Akhlaghpour's motion for rehearing, Akhlaghpour timely appealed to this Court. Under the Barton doctrine, a person who sues a lawyer appointed by the bankruptcy court for acts done in the lawyer's official capacity in a forum other than bankruptcy court must seek leave of the bankruptcy court to do so. Under the Rooker-Feldman doctrine, federal district courts generally lack jurisdiction over cases brought by state-court losers complaining of injuries caused by state-court judgments rendered before the district court proceedings commenced and inviting district court review and rejection of those judgments. The panel held that a bankruptcy court's order granting leave to sue under the Barton doctrine does not amount to a modification of state court decisions arising from an improperly filed state court action. Accordingly, the Rooker-Feldman doctrine did not bar the debtor's Barton motion. The panel held that although the bankruptcy court did not abuse its discretion in granting leave pursuant to Barton, it did abuse its discretion to the extent that its approval was inconsistent with a decision of the California Court of Appeal. The panel held that if claims subject to Barton are asserted in another forum without prior approval, and the bankruptcy court later grants leave to proceed on those claims after the other forum has already issued a decision, then the bankruptcy court's order should be narrowly tailored to the jurisdictional issue and avoid implying that its approval grants any other relief. The bankruptcy court also abused its discretion by granting Barton approval for post-trustee-appointment claims not subject to the doctrine. The panel remanded to the bankruptcy court with instructions to enter an order granting Barton approval to file claims in state court that are consistent with the California Court of Appeal's decision. A copy of the Court's Opinion dated January 20, 2026, is available at https://urlcurt.com/u?l=xw5hxf Counsel for Appellant: Farrah A. Mirabel, Esq. LAW OFFICE OF FARRAH MIRABEL 1070 Stradella Rd Los Angeles, CA 90077-2608 Phone: 714-972-0707 Fax: 949-417-1796 E-mail: fmesq@fmirabel.com Counsel for Appellees: Corinne C. Bertsche, Esq. LEWIS BRISBOIS BISGAARD & SMITH LLP 550 W C St, Ste 1700 San Diego, CA 92101-3568 Phone: 619-233-1006 E-mail: corinne.bertsche@lewisbrisbois.com - and - David Samani, Esq. LEWIS BRISBOIS BISGAARD & SMITH LLP 633 W 5th St Ste 4000 Los Angeles, CA 90071-2074 Phone: 213-250-1800 Fax: 213-250-7900 E-mail: david.samani@lewisbrisbois.com About Mehri Akhlaghpour Mehri Akhlaghpour filed a Chapter 11 Petition (Bankr. C.D. Cal. Case No. 17-12739) on Oct. 11, 2017, and was represented by Giovanni Orantes, Esq. The Debtor asserts an interest in six real properties: * A single family residence located at 4450 Winnetka Ave., Woodland Hills, CA 91364; * A condominium located at 26943 Hillsborough Parkway, #27, Valencia, CA 91354; * A condominium located at 5454 Zelzah Avenue, #302, Encino, CA 91316; * A single family residence located at 16320 Gledhill Street, North Hills, CA 91343; * A single family residence located at 17315 Cagney Street, Granada Hills, CA 91344; and * A condominium located at 8338 Woodley Pl. #28, North Hills, CA 91343. On Dec. 29, 2017, the Office of the United States Trustee filed a motion to appoint a Chapter 11 Trustee. The Motion was granted. On Jan. 25, 2018, Nancy J. Zamora was appointed as the Debtor's Chapter 11 Trustee. The Trustee tapped Levene, Neale, Bender, Yoo & Brill L.L.P. as counsel; and Rodeo Realty, Inc., as real estate broker. NBA PROPERTIES: To Sell Pasadena Property to G. Green & Beverly Lu ------------------------------------------------------------------ NBA Properties LLC seeks permission from the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, to sell Property, free and clear of liens, claims, interests, and encumbrances. The Debtor's Property is commonly known as 3880 Shadow Grove Rd., Pasadena, CA 91107. The property to be sold consists of all of the estate's right, title and interest in the Property. The Debtor wants to sell the Property to Gabriel Green & Beverly Lu for the purchase price of $2,215,000.00. Debtor intends to sell the Property to the Buyer free and clear of all liens and claims, with those liens removed from the Property and the allowed amounts of certain liens in favor of the Pacific RBLF Funding Trust (Deed of Trust) and MLB Trust (Second Deed of Trust) to be paid directly from escrow. Sufficient equity in other assets of the Debtor will be available to cover any possible capital gains taxes resulting from the sale. The Debtor seeks a Court ruling that the party to whom the Court confirms the sale is a good faith purchaser. About NBA Properties Inc. NBA Properties Inc. owns three assets in California -- Pasadena, Sierra Madre, and Victorville -- including 9.7 acres of vacant land subdivided into 37 lots. The portfolio is collectively valued at $7.25 million. NBA Properties Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 25-14395) on May 27, 2025. In its petition, the Debtor reports total assets of $7,283,500 and total liabilities of $6,762,891. Honorable Bankruptcy Judge Sheri Bluebond handles the case. The Debtors are represented by Thomas B. Ure, Esq. at URE LAW FIRM. NEXT DAY: Seeks Chapter 11 Bankruptcy in Texas ---------------------------------------------- On January 23, 2026, Next Day Custom Tees, LLC, filed for Chapter 11 protection in the Western District of Texas. According to court filings, the Debtor reports between $100,001 and $1,000,000 in debt owed to an undisclosed number of creditors. About Next Day Custom Tees, LLC Next Day Custom Tees, LLC is a Texas-based apparel company specializing in custom t-shirt printing and personalized merchandise, serving individual and corporate clients. Next Day Custom Tees, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-50161) on January 23, 2026. In its petition, the Debtor reports estimated assets of $100,001-$1,000,000 and estimated liabilities of $100,001-$1,000,000. Honorable Bankruptcy Judge Craig A. Gargotta handles the case. The Debtor is represented by Frances A. Smith, Esq., Offit Kurman. NORCOLD LLC: U.S. Trustee Challenges Chapter 11 Insider Deal ------------------------------------------------------------ Ben Zigterman of Law360 Bankruptcy Authority reports that the federal bankruptcy watchdogs objected to Norcold LLC's proposed insider asset sale, asserting that the debtor has not shown the transaction was negotiated in good faith. The U.S. Trustee's Office said the company failed to establish that the deal was subject to adequate safeguards or competitive bidding. The trustee added that insider transactions require heightened scrutiny and clear evidence of fairness, which Norcold has not provided. The objection asks the court to reject the sale or require additional disclosures and protections before any approval is granted. About Norcold LLC Norcold LLC is a recreational vehicle refrigerator manufacturer. Norcold LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-11933) on November 3, 2025. In its petition, the Debtor reports more than $300 million. Honorable Bankruptcy Judge Thomas M. Horan handles the case. The Debtor is represented by Sean Matthew Beach, Esq., Simcha Trager, Esq., Matthew Barry Lunn, Esq., Roger Sharp, Esq., Rodney Square, Esq., and Jared W Kochenash, Esq. of Young Conaway. OM SAI MED: Gets Interim OK to Use Cash Collateral -------------------------------------------------- Om Sai Med Center, LLC received interim approval from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to use cash collateral to fund operations. The Court authorized the Debtor to use cash collateral from January 20 for a period of 90 days to pay the expenses set forth in its monthly budget, plus 10% per line item. As adequate protection for any diminution in value of its interests, Fairview Advantage Fund I, LP will be granted replacement liens and security interests co-extensive with its pre-bankruptcy liens. The final hearing is set for April 20. Objections are due by April 6. The interim order is available at https://is.gd/kejhw7 from PacerMonitor.com. Om Sai Med Center filed for bankruptcy on November 3, 2025, and although it initially had no active operations, it resumed business in early January and is now operating as a debtor in possession. The Debtor owns and operates the Rodeway Inn & Suites located at 6712 Morningside Drive in Houston, Texas, and requires immediate access to cash collateral to fund ongoing operations, as it has no outside financing available. The secured lender, Fairview, which claims liens on the Debtor's real and personal property including room rents, has consented to the use of its cash collateral. Fairview, as secured lender, is represented by: Jacob M. Stephens, Esq. Irelan Stephens, PLLC 2520 Caroline Street, 2nd Floor Houston, TX 77004 Phone: (713) 222-7666 Fax: (713) 222-7669 jstephens@irelanlaw.com About OM Sai Med Center LLC Om Sai Med Center, LLC, owned by Leena Patel, operates a hotel under the name Fairbridge Inn & Suites at 6712 Morningside Dr., Houston, Texas, providing lodging services in the hospitality industry. Om Sai Med Center sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 25-36622) on November 3, 2025. In its petition, the Debtor reported between $1 million and $10 million in assets and liabilities. Honorable Bankruptcy Judge Eduardo V. Rodriguez handles the case. The Debtor is represented by Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC. OSMOSE UTILITIES: S&P Alters Outlook to Negative, Affirms 'B-' ICR ------------------------------------------------------------------ S&P Global Ratings revised its outlook on U.S.-based Osmose Utilities Services Inc. to negative from stable and affirmed all its ratings on the company, including the 'B-' issuer credit rating. The negative outlook reflects the potential that S&P could downgrade Osmose in the next 12 months if its operating performance fails to improve, causing it to generate escalating free cash flow deficits that drain its liquidity. Osmose's margin contracted throughout 2025 due to volume pressure in its Wood segment stemming from the loss of a customer and reduced work with its largest customer, which weakened its EBITDA generation. The company's weaker earnings profile has pressured cash flows and increased its leverage, which S&P expects will reach the high-8x area by year-end 2025. S&P said, "While we currently forecast Osmose will improve its leverage and free cash flow generation in 2026, we estimate leverage will remain above 7.5x and we note there are significant risks to our base-case that could lead to lower-than-anticipated deleveraging and cash generation." Osmose's leverage continues to climb following its weak volumes and compressed margins in 2025. The company experienced slower-than-expected growth in its largest segment, Wood (which is now trending below 50% of revenue), in 2025. The two main drivers were Osmose's lower work volumes with its largest customer due to a shift to second-cycle inspections and a customer loss in the first quarter of 2025. The decline was offset by growth in its smaller segments. S&P said, "As such, we project the company will increase its revenue by the 7.0%-8.0% range in 2025, with a quarter of this improvement stemming from the contributions from its recent acquisition of Centillion. Given that Osmose's margin profile is partially dependent on its volumes due to its fixed field management costs, its margins contracted throughout the year, leading to year-to-date S&P Global Ratings-adjusted EBTIDA margins of 17.8% for the third quarter of 2025. We expect the company's margins will benefit from some volume improvement in the fourth quarter. As such, we expect Osmose's full-year margins will be in the low-19% area. This correlates with S&P Global Ratings-adjusted debt to EBITDA in the high-8x range as of year-end 2025, which is up significantly from 7.8x as of the end of 2024." The company has also faced higher-than-historical levels of working capital outflows, mainly related to the timing of its collections, as well as higher capital expenditure (capex) for investments in its IT software and tools. This leads us to expect Osmose will generate breakeven to modestly negative free operating cash flow (FOCF) for full year 2025. Therefore, S&P forecasts the company's S&P Global Ratings-adjusted FOCF to debt will be in the negative 1.0% to 0.0% range in 2025. Osmose's elevated leverage and weak cash generation increase the risks to its financial stability. S&P said, "We expect Osmose will improve its credit metrics in 2026, though risks to our forecast remain. In 2026, we expect the company will increase its revenue by the 14%-16% range, mainly due to a full year of revenue contributions from its recent acquisition of Centillion. Osmose acquired the engineering and design house for fiber deployment in October 2025, and we expect the contributions from the acquisition will account for approximately two-thirds of the projected improvement in its revenue in 2026. We anticipate the remaining increase will stem from organic growth, primarily due to increased volumes in its non-Wood, higher gross margin segments--including Steel, Technical Services, and Underground--supported by our expectation for relatively stable volumes in its Wood segment. "We anticipate Osmose will expand its S&P Global Ratings-adjusted EBTIDA margins to the mid-19% area in 2026, mainly due to the inclusion of Centillion, which carries higher margins than the legacy business, along with incremental benefits from the improved volumes across some of its higher-margin segments. As such, we expect the company will improve its leverage to the high-7x area by the end of 2026. "Given our expectation for improved earnings and working capital usage, which will be partially offset by Osmose's continued elevated capex related to continued investments in technology enhancements, we expect it will generate breakeven to modestly positive FOCF in 2026. Therefore, we estimate the company's S&P Global Ratings-adjusted FOCF to debt will be in the 0%-2% range. "Despite our expectation for an improvement in its credit metrics in 2026, we note continued risks that the company's credit metrics could deteriorate beyond our base case. Specifically, Osmose revenue is highly dependent on its customer's capex spend, which could not only be slowed but also diverted toward other capital projects, which Osmose has experienced in recent years. In addition, the company's fixed costs in its cost structure heightens the risk for margin pressure during periods of slowed activity. If the company doesn't expand its volumes as expected, its leverage could further deteriorate above the 8x area. We estimate this would be commensurate with negative FOCF generation, and a deterioration in the company's liquidity position. Lastly, we note the integration of the Centillion acquisition also poses additional risks to the base case." Osmose currently has sufficient liquidity, though its upcoming maturities could weaken its financial stability. As of Sept. 30, 2025, the company's total liquidity included approximately $25 million of cash, $23 million of availability under its working capital facility, and $55 million of availability under its revolving credit facility. S&P said, "While we believe this will provide Osmose with adequate liquidity over the next year, we note its revolver matures in June 2027. If the company is unable to refinance or extend its revolver prior to June 2026, its liquidity would potentially strain and render it insufficient to cover its large intra-year working capital swings." S&P said, "Additionally, we note that the company's refinancing risk is also heightened by the upcoming 2028 maturity of its term loan. If Osmose is unable to refinance the term loan in a timely manner prior to its maturity, this could further pressure our rating. "The negative outlook reflects the potential that we could downgrade Osmose in the next 12 months if its operating performance fails to improve, causing it to generate escalating free cash flow deficits that drain its liquidity. "We could lower our ratings on Osmose if its EBITDA margins weaken further or its revenue remains stagnant or declines such that it generates sustained and increasing free cash flow deficits that drain its liquidity and lead us to view its financial commitments as unsustainable." This could occur if the company's revenue mix continues to shift away from its higher-margin segment or it is unable to successfully integrate Centillion. Additionally, if Osmose is unable to successfully extend or refinance its revolving credit facility due June 2027 in a timely manner, this could further pressure its liquidity profile and prompt a downgrade. S&P said, "We could revise our outlook on Osmose to stable if its operating performance rebounds and supports sustained positive free cash flow in conjunction with an improving leverage profile to below 7.5x, on a sustained basis. Additionally, we would expect the company to address its pending liquidity issues through the refinancing or extension of its revolving credit facility." PENN BIDCO: Moody's Assigns 'B2' CFR & First Lien Term Loan 'B2' ---------------------------------------------------------------- Moody's Ratings assigned a B2 corporate family rating and B2-PD probability of default rating to Penn Bidco, Inc. Moody's also assigned a B2 rating to Penn Bidco, Inc.'s $625 million 7-year backed senior secured first lien term loan, $100 million backed senior secured first lien delayed draw term loan, and $100 million 6-year backed senior secured first lien revolving credit facility. Coborrowers include Takeoff Buyer, Inc., Martinic Bidco Inc., Allfast Bidco Inc, Monogram Bidco Inc., RSA/Weldmac Bidco Inc., PMI (US) Bidco, Inc., and AME Bidco, Inc., which along with Penn Bidco, Inc. are collectively referred to as "PennAero". The outlook is stable. Proceeds from the senior secured term loan, along with new equity, will be used to fund the acquisition of TriMas Corporation's (Ba2 Under Review for Downgrade) Aerospace business for approximately $1.5 billion. The delayed draw term loan has a 2-year utilization window and will be utilized for future acquisitions. The revolver is expected to be undrawn at close. The assignment of the B2 CFR reflects high initial financial leverage of around 5.5x debt-to-EBITDA on a Moody's adjusted basis, inclusive of synergies, along with modest scale relative to peers, and concentrated ownership. This is balanced by PennAero's relatively high EBITDA margin, moderate backlog providing near-term revenue visibility, leading market position in various engineered aerospace components, long-term customer relationships, and good liquidity. RATINGS RATIONALE The B2 CFR is constrained by high initial leverage with adjusted debt-to-EBITDA of around 5.5x following the close of PennAero's acquisition of the Aerospace business from TriMas Corporation, concentrated private ownership, and modest scale relative to other rated issuers in the aerospace and defense sector. The company benefits from its strong market position in C-class engineered components to the aerospace industry, including various rivets, bolts, and fasteners. PennAero's products are manufactured and sold globally to both original equipment manufacturers and Tier 1 customers, with which it has long standing relationships and long-term agreements. Its moderate backlog and the underlying macro tailwinds in the aerospace and defense industries support a degree of revenue stability, mitigating some end market volatility. Moody's expects debt-to-EBITDA to decline to around 4.5x over the next 12-18 months, driven primarily by earnings growth supported by tailwinds in the aerospace industry, increased share of customer wallet, and modest cost saving opportunities. Good liquidity is supported by Moody's expectations of around $55 million of cumulative free cash flow generation over the next two years, ramping throughout the period. The stable outlook reflects Moody's expectations of strong double digit revenue growth and positive, growing free cash flow over the next 12-18 months. Moody's expects debt-to-EBITDA to decline to around 4.5x over the next 12-18 months driven primarily by earnings growth. Private equity ownership is a governance concern, mainly because of the propensity to sustain higher financial leverage and the ongoing risk of debt-funded shareholder returns delaying deleveraging over time. Moody's expects the company to maintain good liquidity over the next 12-18 months. Liquidity is supported by a $100 million revolving credit facility that is expected to be undrawn at close. Moody's expects potential draws under the revolver to be modest over the next 12-18 months and used primarily for working capital purposes. Cash on hand is estimated to be approximately $12 million upon transaction close. Moody's projects the company to generate positive cumulative free cash flow of around $55 million over the next two years, ramping throughout the period. The company's Credit Impact Score is CIS-4, which indicates that the ratings are lower than they would have been if ESG risk exposure did not exist. PennAero has high governance risk arising from its private equity ownership structure and potential for large capital outflows. The company faces moderate environmental and social risks, in-line with the overall manufacturing sector. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if liquidity materially weakens, leverage increases such that debt-to-EBITDA is sustained above 6.0x, or free cash flow is negative. Ratings could also be downgraded if the company executes on large, debt-funded acquisitions or dividends. The ratings could be upgraded if the company materially increases in scale, debt-to-EBITDA is sustained below 5.0x, or consistently generates strong free cash flow. Ratings could also be upgraded if the company demonstrates conservative financial policy. Marketing terms for the new credit facilities (final terms may differ materially) include the following: Incremental term pari passu debt capacity up to the greater of $115.9 million or 100% of LTM EBITDA, plus unused amounts reallocated from the General Debt Basket (which is equal to the greater of $57.95 million and 50% of LTM EBITDA and may include reallocated amounts from the General Restricted Payments Basket (which may include reallocations from the General Investments Basket) and General Restricted Debt Payments Basket), plus additional amounts subject to the greater of 5.75x First Lien Net Leverage Ratio and leverage neutral incurrence. There is no inside maturity sublimit. The credit agreement is expected to include "J. Crew", "Envision" and "Chewy " provisions. The credit agreement is expected to provide some limitations on up-tiering transactions, requiring affected lender consent for amendments that subordinate the debt or liens. Unused amounts from the builder basket, the General Restricted Payments Basket (including the General Investments Basket) and the General Restricted Debt Payments Basket can be reallocated to incur debt. Carve out growth components include a highwater mark feature. PennAero is a manufacturer of highly engineered structural fasteners, gears, latches and manifolds for the aerospace industry. It also manufactures high-performance components for the semiconductor equipment market. The company is owned by private equity firms Tinicum and Blackstone. Pro forma revenue for the twelve months ended September 30, 2025 was roughly $475 million. The principal methodology used in these ratings was Aerospace and Defense published in July 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. PETCO HEALTH: Moody's Rates New Sr. Secured First Lien Notes 'B3' ----------------------------------------------------------------- Moody's Ratings assigned a B3 rating to Petco Health and Wellness Company, Inc.'s ("Petco") proposed new senior secured first lien notes. All other ratings remains unchanged including the company's B3 Corporate Family Rating, B3-PD probability of default rating and B3 senior secured first lien bank credit facilities ratings. Petco's speculative grade liquidity rating (SGL) remains at SGL-1. The outlook is stable. Proceeds from this proposed notes transaction along with the recently launched $850 million senior secured first lien term loan B and balance sheet cash will be used to repay the approximately $1,545 million outstanding on the company's existing senior secured first lien bank credit facility due 2028 and pay fees and expenses. Moody's expect to withdraw ratings on Petco's existing senior secured first lien bank credit facility due 2028 upon its full repayment. RATINGS RATIONALE Petco's B3 CFR reflects its weakened credit metrics caused by an abatement of the pandemic related pet adoption boom and a further slowing of demand. Consumers have been cutting back on discretionary pet supplies purchases and shifting to value assortments for the more essential consumables in response to a strained wallet. These trends were exacerbated by Petco's operational missteps on product assortment, customer experience and promotions. The CFR also reflects governance considerations, particularly Petco's majority private equity ownership which can result in financial strategies that favor shareholders over creditors. Its profile is supported by Petco's large scale and its position as the third largest pet focused retailer in the United States in a relatively fragmented industry. Moody's projects performance improvement over the next 12-18 months as management executes on its turnaround plans with debt/EBITDA to moderate to below 4.0x and EBITA/Interest in excess of 1.0x. Moody's also expects the company to have very good liquidity through positive free cash flow, ample cash balances and full availability on its ABL. The stable outlook reflects Moody's expectations of improving credit metrics, ample positive free cash flow and very good liquidity over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Petco's rating could be upgraded if the company's operating performance improves, while maintaining very good liquidity supported by positive free cash flow, and continued commitment to conservative financial policies. Quantitatively, rating could be upgraded if the company maintains lease-adjusted debt/EBITDA below 5.75x and EBITA/interest expense over 1.5x. Petco's rating could be downgraded if operating trends and credit metrics do not recover as expected, financial policies become more aggressive, or if liquidity erodes. Specifically, rating could be downgraded if operating margins deteriorate, free cash flow becomes negative or if EBITA/interest expense is sustained below 1.0x. Petco Health and Wellness Company, Inc. is a national specialty retailer of premium and value pet consumables, supplies and companion animals and services with over 1,500 retail locations across the US, Mexico and Puerto Rico. Revenue was about $6.0 billion for the LTM period ending November 01, 2025. The company remains majority owned by CVC Capital Partners and Canada Pension Plan Investment Board following its January 2021 IPO. The principal methodology used in this rating was Retail and Apparel published in September 2025. PLUTO ACQUISITION: Moody's Affirms Caa2 CFR & Cuts Term Loan to Ca ------------------------------------------------------------------ Moody's Ratings affirmed Pluto Acquisition I, Inc.'s ("Pluto Acquisition" d/b/a "AccentCare") Caa2 Corporate Family Rating, Caa2-PD Probability of Default Rating, B2 ratings of the senior secured revolving credit facility and term loan both due in June 2028 (first-out super priority Tranche A), and Caa2 rating of the senior secured term loan due September 2028 (second-out super priority Tranche B). At the same time, Moody's downgraded the rating of the senior secured term loan due December 2028 (third-out super priority Tranche C) to Ca from Caa3, and the senior secured term loan due March 2029 (fourth-out super priority Tranche D) to C from Ca. The outlook is stable. The affirmation of Pluto Acquisition's CFR and PDR reflects Moody's views that the business performance will continue to remain challenged over the next few quarters and deleveraging/cash flow improvement will only be gradual. The rating affirmation of senior tranches (first-out super priority Tranche A and second-out super priority Tranche B) reflects Moody's views that the expected recoveries for these tranches remain unchanged from Moody's previous evaluations. The rating downgrade of the two most junior tranches (third-out super priority Tranche C and fourth-out super priority Tranche D) reflects lower recoveries compared to Moody's previous evaluations, given the increase in outstanding amounts of these two tranches over time as a result of pay-in-kind (PIK) interest payments. RATINGS RATIONALE Pluto Acquisition's Caa2 Corporate Family Rating reflects its very high financial leverage, negative free cash flow, and moderate geographic diversification. Moody's expects the company's debt/EBITDA to remain above 10 times in the next 12 to 18 months. The rating is also constrained by the company's high reliance on Medicare and Medicaid reimbursement and ongoing industrywide clinical labor shortage resulting in elevated wages, which continues to pressure the company's margins. Pluto Acquisition's rating is supported by growing demand for health services in the home setting, a strong competitive presence in Texas and its low capital expenditure requirements, which provides substantial cost advantages compared to facility-based care. Moody's views Pluto Acquisition's liquidity as weak. The company has not generated much free cash flow historically and Moody's expects negative free cash flow in the next 12 months. The company had $12 million in cash at the end of September 30, 2025. While the interest expense on the company's debt remains high, the company maintains flexibility to pay a portion of interest in-kind (PIK) on its fourth-out super priority Tranche D sponsor note. The company does not have meaningful capital expenditure requirements operating in the home health industry. Pluto Acquisition also maintains access to its $225 million asset-based lending (ABL) facility (unrated), which had $123 million available at the end of September 2025. The ABL facility expires in June 2028 and may occasionally be restricted by certain borrowing base limitations. The company also has access to a $40 million revolving credit facility that expires in June 2028, although the borrowing amount on the revolver may be restricted by a springing covenant. The B2 ratings on Pluto Acquisition's $40 million revolving credit facility and $178.5 million senior secured term loan due June 2028 reflect their first-priority position in the debt capital structure. The $850.6 million senior secured term loan due September 2028 (rated Caa2), $282 million senior secured term loan due December 2028 (rated Ca), and the $42.5 million senior secured senior secured term loan due March 2029 (rated C) have second, third, and fourth priority respectively in the company's capital structure, and their comparatively lower ratings reflect the weak expected recovery in a default scenario. The stable outlook reflects Moody's views that Pluto Acquisition's financial leverage will remain very high over the next 12 to 18 months with modest improvements. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Pluto Acquisition demonstrates a continued improvement in earnings quality evidenced by significant decrease in add-backs to EBITDA and a path toward positive free cash flow generation. The ratings could also be upgraded if the company materially reduces leverage to a more sustainable level. A material improvement in liquidity and Moody's recovery expectations could also lead to an upgrade. The ratings could be downgraded if Pluto Acquisition experiences further material operating disruptions or margin degradation. Negative developments in Medicare or Medicaid reimbursement could result in a ratings downgrade. Substantial weakening of liquidity, including further significant utilization of the ABL facility or sustained negative free cash flow, could also result in a ratings downgrade. Lastly, a rising likelihood of default and/or reduced recovery expectations could also lead to a ratings downgrade. Pluto Acquisition I, Inc., headquartered in Dallas TX, is a for-profit home healthcare provider in the US The company offers home health, hospice and personal care services ("PCS"). Revenue was $1.7 billion for the twelve months ended September 30, 2025. The company is owned by private equity firm Advent International. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. Pluto Acquisition's Caa2 CFR is two notches below the B3 scorecard-indicated outcome reflecting ongoing risks associated with the sustainability of the capital structure, earnings quality, and negative free cash flow. PRECISION TRADES: Case Summary & 15 Unsecured Creditors ------------------------------------------------------- Debtor: Precision Trades & Service LLC 993 Heritage Drive Gettysburg, PA 17325 Business Description: Precision Trades & Services provides residential and commercial renovation and improvement services, including roofing, siding, gutters, interior remodels, flooring and tile installation, decks, pergolas, windows, doors, and custom additions. The Company operates as a general contractor in Pennsylvania, Maryland, and West Virginia, serving multiple counties in each state. Chapter 11 Petition Date: January 22, 2026 Court: United States Bankruptcy Court Middle District of Pennsylvania Case No.: 26-00174 Debtor's Counsel: Lawrence V. Young, Esq. CGA LAW FIRM 135 North George Street York, PA 17401-1132 Tel: 717-848-4900 Fax: 717-843-9039 Email: lyoung@cgalaw.com Total Assets: $369,655 Total Liabilities: $1,751,467 The petition was signed by Jacob Plank as managing member. A full-text copy of the petition, which includes a list of the Debtor's 15 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/34FQBVA/Precision_Trades__Service_LLC__pambke-26-00174__0001.0.pdf?mcid=tGE4TAMA PROEMA AUTOMOTIVA: Asks Court for Chapter 15 Discovery ------------------------------------------------------ Emily Lever of Law360 Bankruptcy Authority reports that the foreign representative overseeing defunct Brazilian auto parts manufacturer Proema Automotiva SA has asked a New York bankruptcy court for authorization to obtain discovery from 19 individuals and entities as part of a Chapter 15 proceeding aimed at identifying and recovering potential assets. In the filing, the foreign representative said the requested discovery is necessary to trace assets and investigate transactions that may benefit Proema's Brazilian insolvency estate, arguing that the targeted parties may possess information concerning the company's finances, transfers, or property located in the United States. About Proema Automotiva SA Proema Automotiva SA is a Brazilian automotive components manufacturer based in Sao Bernardo do Campo, Sao Paulo, producing systems such as steering columns, gearshift mechanisms, pedal assemblies, and machined parts for engines and suspensions. Proema Automotiva SA sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.25-12957) on December 31, 2025. The Debtor's foreign representative is Fernando Celso De Aquino Chad. Foreign Representative's Counsel is Merielen Dal Ri Ziviani, Esq. of KELLNER HERLIHY GETTY & FRIEDMAN, LLP. PROTRADE LOGISTICS: Seeks Chapter 11 Bankruptcy in Illinois ----------------------------------------------------------- On January 13, 2026, Protrade Logistics Corporation filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Illinois. According to court filings, the debtor reports between $100,001 and $1 million in debt owed to 50 to 99 creditors. About Protrade Logistics Corporation Protrade Logistics Corporation provides logistics and transportation services, supporting freight movement and supply chain operations for commercial clients. Protrade Logistics Corporation sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-00518) on January 13, 2026. In its petition, the debtor reports estimated assets ranging from $100,001 to $1 million and estimated liabilities in the same range. Honorable Bankruptcy Judge Timothy A. Barnes handles the case. The debtor is represented by Richard N. Golding, Esq. of the Law Offices of Richard N. Golding, P.C. QUALITY OFFICE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Quality Office Liquidations, Inc. Flip Office Furnishings 713 W Luce St Stockton, CA 95203 Business Description: Quality Office Liquidations, Inc., doing business as Flip Office Furnishings, provides warehousing, distribution, retail sales, and related services for pre-owned and new office furnishings, including space planning, delivery and installation, moving and reconfiguration, liquidation, asset management, and disaster recovery. The Company operates a distribution center in Stockton, California, serving customers across California and nationwide, with offerings spanning furniture sourcing, resale, and workplace solutions. It serves clients across sectors including construction, education, medical, technology, professional services, and agriculture. Chapter 11 Petition Date: January 22, 2026 Court: United States Bankruptcy Court Eastern District of California Case No.: 26-20295 Judge: Hon. Christopher D Jaime Debtor's Counsel: Michael Kenneth Moore, Esq. LAW OFFICES OF MICHAEL K. MOORE 210 E Center St Manteca CA 95336 Tel: (209) 373-5815 Email: michael@mkmoorelaw.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by William Leach as CEO. A copy of the Debtor's list of its 20 largest unsecured creditors is available for free on PacerMonitor at: https://www.pacermonitor.com/view/TOA7DFY/Quality_Office_Liquidations_Inc__caebke-26-20295__0003.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/SDV4X6A/Quality_Office_Liquidations_Inc__caebke-26-20295__0001.0.pdf?mcid=tGE4TAMA R INTERCONNECTIONS: Seeks Cash Collateral Access Thru Feb 15 ------------------------------------------------------------ R Interconnections Inc. asks the U.S. Bankruptcy Court for the Northern District of New York for authority to use cash collateral. The Debtor intends to use cash collateral through February 15 in accordance with its proposed budget to pay employee wages, ordinary operating costs, and administrative expenses. It has no unencumbered cash on hand and all available cash is subject to pre-bankruptcy liens. The Debtor identifies the U.S. Small Business Administration as the primary secured creditor with a purported interest in cash collateral, along with UCC filings by Liquid Capital Exchange and federal tax liens that the Debtor asserts were paid in full prior to its Chapter 11 filing. To adequately protect secured creditors, the Debtor proposes periodic adequate protection payments -- $289 per month to the SBA, with no payments to Liquid Capital Exchange or the IRS -- along with continued operation of the business, reporting, and other protections, asserting these measures preserve the value of the collateral. R Interconnections operates a retail storefront selling fishing tackle and gear across upstate New York and surrounding areas and has significant accounts receivable that will replenish cash once collected. A court hearing is scheduled for March 3. A copy of the motion is available at https://urlcurt.com/u?l=jzhdVc from PacerMonitor.com. About R Interconnections Inc R Interconnections Inc operates a retail storefront selling fishing tackle and gear across upstate New York and surrounding areas. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. N.Y. Case No. 26-10033-1-pgr) on January 14, 2026. In the petition signed by Thomas Zebrowski, US operations manager, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Judge Patrick G. Radel oversees the case. Michael Boyle, Esq., at Boyle Legal LLC, represents the Debtor as legal counsel. RDL SOLUTIONS: Gets Interim OK to Use Cash Collateral ----------------------------------------------------- RDL Solutions, LLC and RDL Modifications, LLC got the green light from the U.S. Bankruptcy Court for the Western District of Virginia, Roanoke Division, to use cash collateral to fund operations. The court issued an interim order authorizing the Debtors to use cash and cash equivalents (e.g. accounts receivable, deposit accounts and inventory) consistent with their budget through the February 11 hearing. Creditors that may hold interest in the cash collateral will be provided with protection in the form of replacement liens on or interests in the Debtor's post-petition deposit accounts, accounts receivable and inventory. The creditors are Atlantic Union Bank, Wells Fargo Commercial Distribution Finance, LLC, Bankers Healthcare Group, Live Oak Banking Company, Unique Funding Solutions, LLC, and Forward Financing, LLC. The interim order is available at https://is.gd/nn8imL from PacerMonitor.com. Headquartered in Dublin, Virginia, RDL Solutions and RDL Modifications filed voluntary petitions on January 8 and continue operating as debtors in possession. The Debtors attribute their financial distress to major losses tied to their former largest customer, Volvo, high debt service obligations, and cash flow shortfalls, though they believe restructuring, new work, investment, or a sale could restore viability. Numerous creditors assert liens on the Debtors' personal property and receivables, including traditional lenders and several merchant cash advance providers. The Debtors dispute the validity and characterization of the MCA transactions, arguing they are loans rather than true sales of receivables and reserve all rights to challenge the liens. About RDL Solutions LLC RDL Solutions, LLC provides modification, rework, and paint and collision services for medium- and heavy-duty trucks in Dublin, Virginia, while RDL Modifications, LLC is a service-based company focused on modification and customization solutions across its operational footprint. RDL Solutions and RDL Modifications filed Chapter 11 petitions (Bankr. W.D. Va. Lead Case No. 26-70023) on January 8, 2026. At the time of the filing, RDL Solutions listed between $500,001 and $1 million in assets and between $1 million and $10 million in liabilities while RDL Modifications listed between $100,001 and $1 million in both assets and liabilities. Richard D. Scott, Esq., at the Law Office of Richard D. Scott, PC, represents the Debtors as legal counsel. RITHM CAPITAL: Fitch Publishes 'BB-' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has published a Long-Term Issuer Default Rating (IDR) of 'BB-' for Rithm Capital Corp. The Rating Outlook is Stable. Fitch has also assigned a 'B+' debt rating with a Recovery Rating of RR5 to Rithm's senior unsecured notes. Key Rating Drivers Diversified Business Profile: Rithm's rating reflects the solid franchise and market position of mortgage company Newrez, its largest operating subsidiary, which accounts for 62% of assets and 89% of net income, excluding the corporate segment for the trailing 12 months (TTM) ended Sept. 30, 2025. Fitch believes Rithm's credit profile benefits from the diversification provided by owned businesses focused on asset management, residential transition loans, single family rentals and commercial real estate. The ratings also reflect Rithm's stable profitability, good asset quality within its credit and servicing portfolios, appropriate leverage and experienced management team. Highly Cyclical Real Estate Industry: The ratings are constrained by the highly cyclical nature of the real estate industry, a largely secured funding profile including uncommitted mortgage warehouse facilities, execution risk associated with its acquisitive strategy, reputation risk which can affect the firm's ability to raise funds, and real estate investment trust (REIT) distribution requirements that limit capital retention. Solid Newrez Mortgage Franchise: Fitch believes Newrez's franchise and market position, as one of the largest U.S. residential mortgage originators and servicers, is supportive of the rating with its multi-channel and multi-product approach contributing to a more durable business model relative to peers. Its sizable mortgage servicing rights (MSR) portfolio further diversifies revenues, while its growing subservicing and special servicing businesses provide stable cash flows with minimal incremental capital requirements. Growing Asset Management Segment: Rithm's acquisition of Sculptor Capital Management in 2023 brought $32.8 billion of assets under management and capital-light fee revenues to the business model. In 4Q25, the company added direct lending and insurance capabilities with its acquisition of Crestline Management L.P. and grew the commercial real estate platform by acquiring Paramount Group, Inc. The expanded fund offerings and investment vehicles should continue to diversify its product offerings from Sculptors' multi-strategy hedge fund, which has redemption risks. The asset management arm also provides take out opportunities for Rithm originated assets, supporting earnings growth and enhancing the scale of the overall platform. Still, REIT income requirements will likely constrain overall growth of the asset management segment. In addition, while conservatively funded, the recent acquisitions present integration risks over the medium term. Asset Quality Normalizing: Greater than 90-day delinquencies across Rithm's unsecured personal loan, residential mortgage loan and residential transition loan portfolios was 5.9% of total unpaid principal balance at 3Q25, improved from 7.1% at YE24 on better mortgage performance. Unsecured consumer loans are expected to be more vulnerable to macroeconomic stresses, but the company's overall exposure is limited, at 1.3% of total assets. Delinquencies of 60+ days in Rithm's owned residential mortgage servicing rights (MSR) portfolio were 3.1% at 3Q25, down from 3.4% at YE24 but up from 2.3% at YE23 given weakening performance of the Ginnie Mae loans. Fitch notes that Rithm is exposed to potential losses due to repurchase or indemnification claims from investors under certain warranty provisions, although claims in recent years have been manageable, and reserves are deemed sufficient. Net Flows Stabilize Net client flows in the asset management segment have been volatile in recent years with Sculptor experiencing outflows in the 2023 acquisition year. More recent fundraising has been solid, with robust net client flows in 9M25 and 2024. Fitch believes the long track record and new fund offerings should support stable AUM growth over time. Total AUM was $37.5 billion at 3Q25, up 9% yoy and up 14% since the acquisition. The Paramount and Crestline acquisitions brought an additional $7 billion and $18 billion of AUM, respectively, to the platform in 4Q25. Stable Profitability: Rithm's pre-tax return on average assets (ROAA), adjusted for GNMA loans subject to repurchase and excess MSR financing-related assets, was 2.6% for the TTM ended 3Q25, compared to the four-year average (2021-2024) of 2.9% and within Fitch's 'bb' category earnings benchmark range of 1%-4% for balance sheet heavy finance and leasing companies with a sector risk operating environment (SROE) score in the 'bbb' category. Reported earnings available for distribution, which removes fair value changes on MSRs, other income, transaction related expenses and deferred taxes, was 2.8% of average assets for the TTM ended 3Q25, improved from the four-year average of 2.3% for 2021-2024 on growing asset management earnings. Appropriate Leverage: Rithm's leverage, measured by gross debt-to-tangible equity, including non-recourse securitizations, was 4.5x at 3Q25 — within Fitch's 'bb' category benchmark range of 4x-7x for balance sheet heavy finance and leasing companies with an SROE score in the 'bbb' category. Excluding repurchase agreements used to match-fund agency RMBS, which are of high quality, a natural hedge to the MSR portfolio, and aid in meeting REIT asset requirements, leverage was 3.5x at 3Q25. Corporate leverage, which excludes mortgage warehouse facilities and notes payable of consolidated financing entities, was 1.8x at 3Q25, within management's 1.5x-2x target range. Fitch has afforded Rithm's preferred shares 50% equity credit considering the cumulative nature of the distributions, the fact that the preferred shares are perpetual, and the lack of automatic change of control provisions and events of default. Reliance on Secured Funding: Rithm's funding profile is largely secured, with unsecured debt (adjusted for the preferred shares) representing just 6.3% of gross debt at 3Q25, or 8.2% excluding agency RMBS repurchase agreements. Fitch believes a more meaningful unsecured funding component and the introduction of committed warehouse financing would improve financial flexibility in times of stress. Despite being predominantly secured, Rithm's funding profile is well-diversified and benefits from non-recourse issuances and reduced mark-to-market exposure. While over half of gross debt is due within one year, many of Rithm's warehouse and secured financing facilities are multi-year and term secured debt improves maturity laddering. The next unsecured debt maturity is in April 2029, when $775 million of notes come due. Adequate Liquidity: As a REIT, Rithm must distribute at least 90% of its annual net REIT taxable income to shareholders, which constrains the firm's ability to build equity and impacts Fitch's assessment of firm liquidity. At 3Q25, the company had $1.6 billion of cash and $1.4 billion of availability on its MSR facilities, which Fitch views as adequate to address its funding and operating needs. Rithm also had over $5.9 billion of available capacity on its warehouse and other secured funding agreements and $1.7 billion on its servicing advance facilities at 3Q25. Earnings available for distribution covered dividends 1.8x in 9M25, up from an average of 1.6x between 2021 and 2024. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- Deterioration of the franchise, market position or financial profile of Newrez; -- The sale of a key operating subsidiary that results in a weaker consolidated business profile, higher leverage or more volatile earnings; -- A weakened liquidity profile such as an inability to extend financing facilities as they mature and/or maintain adequate funding diversity; -- A sustained increase in Fitch-calculated leverage, including all non-recourse debt, above 7x or corporate leverage above 2x; -- Deterioration in asset quality or material net outflows from the asset management segment; -- Sustained profitability challenges that erode tangible equity and the company's market position; -- Substantial regulatory fines or litigation expense that negatively impact the company's franchise or operating performance. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- An improvement in funding flexibility, as demonstrated by further extension of the maturity profile and an increase in the unsecured funding component, above 10%; -- Enhanced consistency of core earnings performance; -- Maintenance of a strong liquidity profile relative to near-term debt maturities; -- Maintenance of gross leverage below 4x or corporate leverage approaching 1x; -- Growth of the business that enhances the franchise and platform scale. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The senior unsecured debt rating is one notch below Rithm's Long-Term IDR given the high balance sheet encumbrance and largely secured funding profile, which suggests weaker-than-average recovery prospects in a stressed scenario. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The unsecured debt rating is sensitive to changes to Rithm's Long-Term IDR, unsecured funding mix and the level of unencumbered assets relative to outstanding unsecured debt. A material increase in the proportion of unsecured funding and an increase in the size of the unencumbered asset pool which alters Fitch's view of the recovery prospects could result in the senior unsecured debt rating being equalized with the Long-Term IDR. ADJUSTMENTS -- The Standalone Credit Profile (SCP) has been assigned in line with the implied SCP. -- The Business Profile score has been assigned below the implied score due to the following adjustment reason(s): Business model (negative). RATING ACTIONS Entity/Debt Rating Recovery ----------- ------ -------- Rithm Capital Corp. LT IDR BB- Publish senior unsecured LT B+ Publish RR5 ROOFING DESIGNS: Kinsale Wins Bid to Dismiss Adversary Case ----------------------------------------------------------- Judge Michelle V. Larson of the United States Bankruptcy Court for the Northern District of Texas granted Kinsale Insurance Company's motion to dismiss the first amended petition filed by Roofing Designs by JR, LLC in the adversary proceeding captioned as ROOFING DESIGNS BY JR, LLC, Plaintiff v. BONIFACIO TAPIA DBA BYTL ROOFING SOLUTIONS, LLC AND KINSALE INSURANCE COMPANY, Defendants, ADVERSARY NO. 24-03079-mvl (Bankr. N.D. Tex.). All claims asserted by Roofing Designs in its petition are dismissed with prejudice. Roofing Designs served as the roofing subcontractor on a project located at 900 Winston Street in Houston, Texas. As part of its work, Roofing Designs subcontracted the labor installation of the roofing system to Bonifacio Tapia, operating through BMTL Roofing Specialist, LLC and BYTL Roofing Solutions, LLC (collectively, "Tapia"). According to Roofing Designs, the subcontract agreement required Tapia to procure commercial general liability insurance naming Roofing Designs as an additional insured, and Tapia obtained that coverage through a policy issued by Kinsale Insurance Company. Roofing Designs alleges that in May 2021, the roofing system was substantially complete when the general contractor, Royal American Construction ("RAC"), began reporting roof leaks and asserting that the installation was defective. Roofing Designs maintains that these issues stemmed from building-related problems such as plumbing, HVAC, and exterior deficiencies, rather than from any defect in the roofing system. Nevertheless, on June 16, 2021, RAC terminated Roofing Designs and later filed suit in the United States District Court for the Southern District of Texas asserting claims relating to Roofing Designs' performance and its surety (the "RAC Lawsuit"). Roofing Designs alleges that the RAC Lawsuit centered on roofing work performed by Tapia and his crew. On this basis, Roofing Designs tendered its defense to Kinsale under Tapia's separately issued policy by Kinsale (the "Tapia Policy") in February 2023, asserting coverage as an additional insured. According to Roofing Designs, Kinsale denied the tender on the grounds that Tapia and BMTL were not named defendants in the RAC lawsuit. Roofing Designs contends that the consequences of Kinsale's denial of coverage under the Tapia Policy were significant. Because Kinsale had already accepted the defense of Roofing Designs under its separate policy with Roofing Designs (the "Roofing Designs Policy"), subject to a reservation of rights, Roofing Designs alleges that Kinsale effectively shifted the entire financial burden of defending the RAC Lawsuit onto the Roofing Designs Policy. Roofing Designs asserts that the Tapia Policy carried $1 million in limits that should have been applied to its defense first, and that Kinsale's refusal to allocate or shift defense costs caused Roofing Designs to pay defense expenses that should have been borne under the Tapia Policy. Kinsale continued to provide a defense under the Roofing Designs Policy through the conclusion of the RAC lawsuit and ultimately settled RAC's claims on Roofing Designs' behalf. The district court then dismissed the RAC Lawsuit with prejudice. Roofing Designs subsequently initiated this adversary proceeding, asserting claims for breach of contract for failure to defend under the Tapia Policy, breach of contract and negligence relating to the defense provided under the Roofing Designs Policy, bad faith, and violations of the Texas Insurance Code, along with requests for declaratory relief concerning its additional-insured status and the allocation of defense costs. Kinsale now seeks dismissal of all claims under Rule 12(b)(6). Kinsale argues that: (1) the pleadings do not plausibly allege a duty to defend or indemnify under the Tapia Policy because no liability arising from Tapia's conduct was alleged by RAC in the RAC Lawsuit. (2) Texas law does not recognize a negligent-defense theory, and the Petition identifies no breached obligation under the Roofing Designs Policy. (3) The absence of coverage forecloses any bad-faith or statutory liability. (4) The declaratory judgment claim is duplicative of the underlying contractual and extra-contractual claims. At the core of the dispute is whether Roofing Designs should have been afforded coverage under the Tapia Policy as an additional insured and whether Kinsale should have done more to defend Roofing Designs under the Roofing Designs Policy. The Court concludes that: (1) the allegations in the petition do not plausibly give rise to a duty to defend under the Tapia Policy; (2) Kinsale satisfied its contractual obligations under the Roofing Designs Policy; and (3) Roofing Designs' claims for bad faith, statutory violations, and equitable subrogation fail as a matter of law. Judge Larson explains, "The allegations in the underlying RAC Lawsuit, when compared to the relevant policy language under the eight-corners rule, did not trigger coverage for Roofing Designs as an additional insured under the Tapia Policy. Because Roofing Designs did not qualify as an insured under that policy, Kinsale owed no duty to indemnify Roofing Designs in connection with the RAC Lawsuit. The absence of coverage under the Tapia Policy is dispositive of Roofing Designs' breach-of-contract claims premised on an alleged failure to defend or indemnify it under the policy." A copy of the Court's Memorandum Opinion and Order dated January 20, 2026, is available at https://urlcurt.com/u?l=u3Htz6 from PacerMonitor.com. About Roofing Designs Roofing Designs by JR, LLC, had been concentrating larger commercial projects mainly in Houston, Texas. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-32275) on Oct. 4, 2023, with $50,001 to $100,000 in assets and $500,001 to $1 million in liabilities. Eric A. Liepins, Esq., at Eric A. Liepins, P.C., is the Debtor's legal counsel. SAKS GLOBAL: Wins Approval to Liquidate Online Unit Inventory ------------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that one of Saks' online affiliates received court approval from a Texas bankruptcy judge to initiate an inventory liquidation, following the retailer's argument that a fast sale is crucial to support ongoing operations and financial obligations. The decision allows the affiliate to move forward with selling inventory efficiently. Saks told the court that a prompt liquidation is key to preserving the value of the merchandise and ensuring funds are available for creditors. The judge said the plan struck a fair balance between speed and oversight, approving the measure to aid the bankruptcy estate, the report states. About Saks Global Enterprises LLC Saks Global is the largest multi-brand luxury retailer in the world, comprising Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow. Its retail portfolio includes 70 full-line luxury locations, additional off-price locations and five distinct e-commerce experiences. With talented colleagues focused on delivering on our strategic vision, The Art of You, Saks Global is redefining luxury shopping by offering each customer a personalized experience that is unmistakably their own. By leveraging the most comprehensive luxury customer data platform in North America, cutting-edge technology, and strong partnerships with the world's most esteemed brands, Saks Global is shaping the future of luxury retail. Saks Global Properties & Investments includes Saks Fifth Avenue and Neiman Marcus flagship properties and represents nearly 13 million square feet of prime U.S. real estate holdings and investments in luxury markets. On Jan. 13, 2026, and Jan. 14, 2026, Saks Global Enterprises LLC and 112 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 26-90103). The jointly administered cases are pending before the Honorable Alfredo R. Perez. Willkie Farr & Gallagher LLP and Haynes and Boone, LLP are serving as legal counsel, PJT Partners LP is serving as investment banker, Berkeley Research Group is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to the Company. Stretto is the claim agent. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel, Lazard Freres & Co, LLC is serving as investment banker, FTI Consulting, Inc. is serving as financial advisor, and Kekst CNC is serving as a strategic communications advisor to the Ad Hoc Group. SAM'S DINER: Gets Interim OK to Use Cash Collateral --------------------------------------------------- Sam's Diner of Maumee, Inc., Ltd. got the green light from the U.S. Bankruptcy Court for the Northern District of Ohio to use cash collateral to fund operations. The court issued an interim order authorizing the Debtor to use the cash collateral of its secured creditors to pay ordinary expenses, provided that projected net income under its budget equals at least 75% of the projected amount. The secured creditors are the U.S. Small Business Administration, United First, LLC, DoorDash Capital, Forward Financing, LLC, Fenix Capital Funding, LLC, and Rapid Finance. As adequate protection, these secured creditors will be granted a post-petition perfected security interest in the Debtor's property to the same extent and with the same priority as their pre-bankruptcy security interest. The Debtor's authority to use cash collateral will terminate upon occurrence of so-called events of default including conversion or dismissal of its Chapter 11 case; cessation of operations; and termination of the cash collateral order. The next hearing is set for February 25. The interim order is available at https://is.gd/jbS30K from PacerMonitor.com. Sam's Diner of Maumee is an Ohio corporation formed in 2015 and operates a restaurant in Maumee, Ohio serving classic American diner fare and Mediterranean dishes. It is solely owned and managed by Naim El-Kechen and currently employs seven people. The Debtor's principal secured creditor is the SBA, which holds a first-priority lien on substantially all of its personal property including accounts and other rights to payment, securing a May 2020 loan with an outstanding balance of approximately $345,220. In addition, the Debtor entered into several merchant cash advance agreements with United First, DoorDash, Forward Financing, Fenix Capital Funding, and Rapid Finance, which the Debtor contends were structured as sales of future receivables and, therefore, do not give those entities interests in the Debtor's cash collateral. To the extent they do hold interests, the Debtor asserts they are junior to the SBA's lien. The Debtor has minimal cash on hand (about $5,685 in total across accounts and receivables). About Sam's Diner of Maumee, Inc. Ltd. Sam's Diner of Maumee, Inc., Ltd. operates a restaurant in Maumee, Ohio. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 26-30057-maw) on January 13, 2026. In the petition signed by Naim C El-Khechen, principal, the Debtor disclosed up to $100,000 in assets and up to $1 million in liabilities. Judge Mary Ann Whipple oversees the case. Eric R. Neuman, Esq., at Diller and Rice, LLC, represents the Debtor as legal counsel. SANFORD CONTROLS: Gets Interim OK to Use Cash Collateral -------------------------------------------------------- Sanford Controls, LLC and Stealth Control Systems, LLC got the green light from the U.S. Bankruptcy Court for the District of Massachusetts to use the cash collateral of secured creditors to fund operations. The court authorized the Debtors' interim use of cash collateral, including cash on hand and proceeds of pre-bankruptcy accounts receivable, in accordance with their budget pending the final hearing. The Debtors may deviate by more than 10% for cost of goods. As adequate protection for any diminution in the value of their cash collateral, secured creditors will have continuing replacement liens and security interests on post-petition property of the estate. A court hearing is set for February 4. Objections are due by February 3. The order is available at https://is.gd/AzoVG0 from PacerMonitor.com. As of the petition date, Sanford's assets include approximately $175,000 in trade equipment and tools, $71,500 in accounts receivable, about $6,000 in office and electronics, and four vehicles worth $100,000–$120,000, against purported liabilities of roughly $400,000, including suppliers, taxes, vehicle loans, and six joint MCAs with a face amount of $462,050 at origination. Stealth's assets include about $150,000 in tools, $7,800 in receivables, and two vehicles worth about $79,800, with purported liabilities around $600,000, including suppliers, taxes, vehicle loans, and the same six joint MCAs. The only asserted secured claims arise from the MCAs, with UCCs filed in December 2025 by Funnded.com, Direct Merchants Funding, and service companies; the Debtors dispute the enforceability of the MCA transactions and their security interests and contend the UCC filings may be avoidable preferences. The Debtors' prior growth efforts were disrupted by hiring underqualified technicians in 2023–2024, requiring costly remediation, and by delayed payments on large jobs in spring 2025 that triggered a cash crunch. To smooth cash flow they took multiple merchant cash advances, whose aggressive repayment terms worsened liquidity. When the Debtors sought relief in December 2025, the MCA lenders instead rushed to file UCC financing statements and levy receivables, forcing the Chapter 11 filings. Despite these setbacks, the Debtors assert strong reputations and skilled staff and contend that reorganization will yield a better return to unsecured creditors than liquidation, which would produce only modest recoveries from mostly encumbered vehicles and tools and would terminate ten jobs. About Sanford Controls LLC Sanford Controls LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 26-10069) on January 12, 2026. In the petition signed by Howard J. Sanford, Jr, manager, the Debtor disclosed up to $500,000 in assets and liabilities. Kate E Nicholson, Esq., at Nicholson Devine LLC, represents the Debtor as legal counsel. SAVI CONSTRUCTION: Unsecureds to Split $50K over 60 Months ---------------------------------------------------------- Savi Construction LLC filed with the U.S. Bankruptcy Court for the Eastern District of California a Plan of Reorganization dated January 15, 2026. The Debtor owns and operates a commercial and residential construction business. The Debtor was formed in June 2019 and operates its business in California. The Debtor's principal place of business is located in Bakersfield, California. Jenny Ramirez is the Debtor's sole Member and Raul Ramirez is the Debtor's Supervisor of Operations. Ms. Ramirez and Mr. Ramirez are qualified to lead the Debtor's business and reorganization efforts. The Debtor's debt incurred in its business includes secured claims of $448,759.63 and unsecured non-priority claims of $289,032.75. The Debtor filed its Chapter 11 case to give the Debtor a vehicle to reorganize its business and repay creditors as required by the law. The Debtor has acquired new and reliable customers in 2025 and will continue its business during the Term of the Plan. The Debtor anticipates that its income and expenses will be stable and consistent during the Term of the Plan and will generate sufficient revenue to make the payments required by the Plan. The Term of the Plan will not exceed sixty months from the effective date of the Plan. Class Seven consists of General Unsecured Claims. The Class Seven Claims will be about $312,126.45 on the effective date according to the Debtor's Schedules of Assets and Liabilities filed on November 26, 2025 and Proofs of Claim filed by creditors in Debtor's case. Class Seven claims will be paid over sixty months and Class Seven Claims will not accrue interest after the effective date. Class Seven claims will receive a pro rata share of $50,000.00 during the term of the Plan. Any Class Seven claim not paid through the Plan will be discharged when the Court enters a discharge as provided for in Sections 1141 and 1192. Payments on the Class Seven claims will be $10,000.00 per year during the Term of the Plan. Class Seven claims will receive a pro rata share of $10,000.00 per year until the Class Seven Dividend is paid in full. Payment of the Class Seven Claims will continue each year until the Class Seven Dividend is paid in full. The Plan will be executed by Debtor making payments to Claimants from money received from the Debtor's business operations. A full-text copy of the Plan of Reorganization dated January 15, 2026 is available at https://urlcurt.com/u?l=qDSzK7 from PacerMonitor.com at no charge. Counsel to the Debtor: Leonard K. Welsh, Esq. LAW OFFICES OF YOUNG WOOLDRIDGE 1800 30th Street, Fourth Floor Bakersfield, CA 93301 Tel: (661) 328-5328 Fax: (661) 760-9900 E-mail: lwelsh@youngwooldridge.com About Savi Construction LLC Savi Construction LLC, previously operating as Solutions Ramirez LLC, provides construction, remodeling, and related services across residential and commercial markets. Savi Construction sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 25-13979) on Nov. 26, 2025. In its petition, the Debtor estimated assets and liabilities between $100,001 and $1 million. SCV GRAPHIC: To Sell Graphic Design Equipment to 360 Creative ------------------------------------------------------------- SCV Graphic Productions, Inc., seeks approval from the Northern District of Georgia, Newnan Division, to sell Equipment, free and clear of liens, claims, interests, and encumbrances. The Debtor is a graphic design and production company operating since 2007, with locations in metropolitan Atlanta, Georgia and metropolitan Los Angeles, California. Historically, the company primarily operated in the entertainment industry, however more recently they have tapped into a new market and is experiencing success designing and producing graphics and sculptures for retail operations and amusement theme parks. After analysis of the Debtor's operations, the Debtor has determined in its business judgment that a downsizing of its operations is appropriate and will result in significant cost savings for the Debtor's estate. In support of this the Debtor is winding down its Georgia operations. The Debtor seeks authority to sell certain equipment as identified in the Proposed Asset Purchase Agreement attached as Exhibit A. https://urlcurt.com/u?l=twq4RE The Debtor’s representative and counsel have explored various options for selling the Equipment and have been in discussions several potential purchasers. The Debtor has determined that the most efficient way to sell the Equipment is in a "package deal" whereby the Debtor sells all of the Equipment located in its Georgia location. The Debtor received an offer from 360 Creative Solutions Group LLC for the purchase of the Equipment and requests to sell the Equipment for an amount equal to or greater than the amount reflected in the Offer. The purchase price of the Equipment is $180,000. The Debtor submits that the price reflected in the Offer reflects a fair market value based on an appraisal of the Equipment. Upon the sale of any of the Equipment, the Debtor proposes to hold the proceeds in escrow pending further order of the Court. To the extent that the Equipment is subject to security interests or liens the proceeds will be used to satisfy those claims. The Debtor has determined that the sale of the Equipment is in the best interests of its estate. The Debtor submits that eliminating the costs of maintenance and storage on this property will improve cash flow by reducing the Debtor's obligations on these assets, as well as generate additional working capital via receipt of the sale proceeds. The Sale has been proposed in good faith, free of any fraud or misconduct and for value and without knowledge of any adverse claim. About SCV Graphic Productions Inc. SCV Graphic Productions Inc., operating as Dangling Carrot Creative, is a custom graphics and display manufacturing company that specializes in manufacturing custom displays, signage, and creative installations using materials such as composites, plastics, and foams, alongside printing and imaging technology. The company maintains operations in both Fayetteville, Georgia and Valencia, California, with its principal place of business located in Georgia. SCV Graphic Productions Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-10613) on April 28, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Benjamin R. Keck, Esq. at Keck Legal, LLC. SHIVSANYA CORP: Claims to be Paid from Asset Sale Proceeds ---------------------------------------------------------- Shivsanya Corp. filed with the U.S. Bankruptcy Court for the Western District of Virginia a Disclosure Statement describing Chapter 11 Plan dated January 16, 2026. The Debtor was formed in 2016 and purchased the unimproved commercial real estate that it currently owns. It has never conducted any business with that real estate. The real estate constituted additional collateral for Ameris Bank for loans that the bank made to affiliates and related entities. This case commenced when Ameris Bank commenced foreclosure proceedings on the unimproved land owned by the Debtor. The Debtor has reviewed the Ameris Bank claims and may object to the amount of the asserted claims, as the Debtor is not convinced that the claims accurately reflect the proceeds realized by the referenced foreclosures on the Debtor's affiliates. On October 15, 2025, unable to convince Ameris Bank to cancel its foreclosure sale, the Debtor filed its petition pursuant to Chapter 11 of the Bankruptcy Code and has operated as debtor-in possession since that time. The Debtor has contacted a commercial real estate agent to help value and list its sole asset for sale. The Debtor will promptly contract with the agent to list and sell its real estate, and will apply to the Court to approve the listing agreement. Ameris Bank filed a secured claim to which the Debtor might object. It has requested information from Ameris Bank as to application of prior foreclosure sale proceeds. The Debtor has analyzed the liquidation value of his assets as required by Section 1129(a)(7) of the Bankruptcy Code. The Debtor's sole asset is its unimproved real estate upon which Ameris Bank has a lien. It is unclear at this time whether the value is sufficient to pay Ameris Bank, as the Debtor may still object to that claim. The Debtor has no unsecured creditors. Class 4 consists of Shareholder Interests. The Debtor's equity holders shall retain their equity in the Debtor but shall not receive any distribution on equity until such time as the Debtor's obligations to its Class 2 and 3 creditors are fully satisfied. This class is impaired. The Debtor shall pay any outstanding U.S. Trustee fees pursuant to 11 USC section 1930(a) of the Judicial Code, in full on or before the Effective Date, and the Debtor and/or Reorganized Debtor shall continue to pay such fees until the Chapter 11 case is converted, dismissed, or closed, whichever occurs first. The Debtor shall list and sell its commercial real estate as described in this Plan. A full-text copy of the Disclosure Statement dated January 16, 2026 is available at https://urlcurt.com/u?l=i8l1Qm from PacerMonitor.com at no charge. Counsel to the Debtor: Andrew S. Goldstein, Esq. MAGEE GOLDSTEIN LASKY & SAYERS, P.C. PO Box 404 Roanoke, VA 24003-0404 Tel: (540) 529-1609 Fax: (540) 343-9898 EMail: agoldstein@mglspc.com About Shivsanya Corp. Shivsanya Corp. is a single-asset real estate company that leases residential and nonresidential buildings. Shivsanya Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Va. Case No. 25-61245) 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 handles the case. The Debtor is represented byAndrew S. Goldstein, Esq. of MAGEE GOLDSTEIN LASKY & SAYERS, P.C.bout Shivsanya Corp. Shivsanya Corp. is a single-asset real estate company that leases residential and nonresidential buildings. Shivsanya Corp. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Va. Case No. 25-61245) on October 15, 2025, listing $500,000 to $1 million in assets and $1 million to $10 million in liabilities. The petition was signed by Paresh K. Suthar as president. Andrew S. Goldstein, Esq. at MAGEE GOLDSTEIN LASKY & SAYERS, P.C. represents the Debtor as counsel. SHOSHANAH FASHIONS: Gets Interim OK to Use Cash Collateral ---------------------------------------------------------- Shoshanah Fashions, Inc. received interim approval from the U.S. Bankruptcy Court for the District of Massachusetts, Eastern Division, to use cash collateral to fund operations. The court authorized the Debtor to use the cash collateral of the U.S. Small Business Administration in accordance with its budget pending the final hearing. The SBA claims a security interest in pre-bankruptcy assets of the Debtor, including proceeds from pre-bankruptcy accounts receivable and cash on hand. As adequate protection, the SBA will be granted a continuing replacement lien and security interest to the same extent, validity and priority that it would have had in the absence of the Debtor's bankruptcy filing. The next hearing is set for February 19. Objections are due by February 17. The order is available at https://is.gd/xUHXTj from PacerMonitor.com. Shoshanah Fashions operates a women's fashion retail store in Canton, Massachusetts, known as Mission, which she founded in 2010. Her largest obligation is an approximately $400,000 Economic Injury Disaster Loan from the SBA, secured by a lien on all of the Debtor's assets, primarily retail inventory. In addition, the Debtor owes roughly $17,818 in Massachusetts sales taxes and about $100,000 in credit-card debt, but no significant vendor debt. The Debtor believes that by restructuring and reducing the SBA loan and paying tax arrears over a five-year plan period, it can restore positive cash flow and provide a reasonable distribution to unsecured creditors. About Shoshanah Fashions Inc. Shoshanah Fashions, Inc. operates a women's fashion retail store in Canton, Massachusetts. Shoshanah Fashions sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 26-10083) on January 14, 2026, listing up to $100,000 in assets and up to $1 million in liabilities. Shoshanah Graupen, president of Shoshanah Fashions, signed the petition. Judge Christopher J. Panos oversees the case. David B. Madoff, Esq., at Madoff & Khoury, LLP, represents the Debtor as legal counsel. SHOSHANAH FASHIONS: Seeks Chapter 11 Bankruptcy in Massachusetts ---------------------------------------------------------------- On January 14, 2026, Shoshanah Fashions, Inc., filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Massachusetts. According to court filings, the Debtor reports between $100,001 and $1 million in debt owed to between 1 and 49 creditors. About Shoshanah Fashions, Inc. Shoshanah Fashions, Inc. is a fashion and apparel company. Shoshanah Fashions, Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-10083) on January 14, 2026. In its petition, the Debtor reports estimated assets of $0–$100,000 and estimated liabilities of $100,001–$1 million. Honorable Bankruptcy Judge Christopher J. Panos handles the case. The Debtor is represented by David B. Madoff, Esq. of Madoff & Khoury LLP. SOUTHERN TREE: Gets Extension to Access Cash Collateral ------------------------------------------------------- Southern Tree Professionals, LLC received second interim approval from the U.S. Bankruptcy Court for the Northern District of Georgia, Gainesville Division, to use cash collateral to fund operations. The court authorized the Debtor to use cash collateral from December 10 until the final hearing scheduled for February 3. The Debtor needs to use cash collateral, which consists of substantially all of its revenue, to continue operating its land-clearing, tree-removal, recycling, and mulch business while in Chapter 11. As adequate protection, lenders with valid pre-bankruptcy liens will be granted replacement liens on property acquired by the Debtor after the petition date that is similar to their pre-bankruptcy collateral. These replacement liens exclude proceeds of avoidance actions under Chapter 5 of the Bankruptcy Code. The second interim order is available at https://shorturl.at/LLHeV from PacerMonitor.com. Southern Tree Professionals' financial distress began in 2024 when an attempted expansion created cash-flow problems, forcing the business to rely on merchant cash advances and loans that ultimately overwhelmed liquidity and contributed to the bankruptcy filing. The Debtor operates on leased land in Georgia and is managed solely by its member, Benjamin Ellis. The merchant cash advance lenders are Libertas Funding, Universal Finance, and Global Merchant Cash. These lenders may hold security interests in certain accounts and revenues through recently filed UCC-1 financing statements, making those revenues potential cash collateral under 11 U.S.C. Section 363. About Southern Tree Professionals LLC Southern Tree Professionals LLC provides tree removal, pruning, emergency response, land clearing, hauling, arborist services, and green-waste management for residential, commercial, and municipal clients across the Atlanta metropolitan area. The Company operates throughout communities such as Marietta, Roswell, Sandy Springs, Alpharetta, Smyrna, Buckhead, Brookhaven and Decatur, and works on large-scale projects involving clearing, grubbing, debris haul-off and site preparation for commercial contractors and government entities including GDOT. It offers additional services such as lightning-protection systems, mulch supply and excavating and demolition work as part of its broader operations in the tree services and land-management sector. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 25-21754) on December 5, 2025. In the petition signed by Benjamin Townsend Ellis, owner, the Debtor disclosed up to $50,000 in assets and up to $50 million in liabilities. William Rountree, Esq.. at Rountree, Leitman, Klein & Geer, LLC, represents the Debtor as legal counsel. SUNSOURCE BORROWER: S&P Affirms 'B' ICR on Acquisition ------------------------------------------------------ S&P Global Ratings affirmed its 'B' ratings on SunSource Borrower LLC and its first-lien term loan. The stable outlook reflects S&P's view that U.S. industrial activity will pick up, increasing SunSource's revenue and offsetting the company's ongoing salesforce investments and its acquisition, resulting in S&P Global Ratings-adjusted debt to EBITDA of about 6.7x for the 12 months after it closes. S&P said, "We believe SunSource Borrower LLC's leverage will be stable in 2026, pro forma for a $465 million increase in first-lien term loan to fund the acquisition of a distributor. "Although we expect the company's S&P Global Ratings-adjusted debt to EBITDA was elevated at 6.7x in 2025, an equity contribution to partially fund the acquisition should prevent leverage from rising above 7x. "We forecast accelerating U.S. industrial investment will allow SunSource to maintain its credit metrics. The company has limited credit cushion as we estimate its S&P Global Ratings-adjusted debt to EBITDA was 6.7x in 2025. We believe the acquisition will pressure leverage in 2026 because it will finance this with a $465 million first-lien term loan--along with common equity--and our forecast for the acquired EBITDA contribution this year is less than $70 million. However, we foresee stronger industrial investment in the U.S. in 2026, accelerating SunSource's growth and expanding the profitability of its existing business. This should prevent it from sustaining adjusted leverage above 7x in 2026. "Excluding acquisitions, we assume revenue will increase 5% in 2026. In 2026, we anticipate SunSource will increase sales volume and price by 2%-3% each. AI-related spending will likely continue to power U.S. business investment. We think peak tariff-related uncertainty, which weighs on industrial demand, is behind us. Lower U.S. interest rates should also relax customers' scrutiny on inventory and capital investment. The company will likely acquire small distributors earning revenue of $10 million-$100 million like it has over the past seven years. However, the number and timing of these transactions is irregular, so our forecast excludes them. "We expect the existing business will grow enough to offset profitability headwind from the acquisition in 2026. SunSource has remained disciplined on pricing, controlled other cost of goods sold, and continued to improve the efficiency of its tuck-in acquisitions. We believe it has fully passed inflation on to customers. This has allowed its S&P Global Ratings-adjusted gross margin (before depreciation and amortization expense) to expand 50 basis points (bps) from 2023-2025 despite a soft demand environment. We believe accelerating U.S. industrial activity will return revenue and gross profit to growth and keep leverage stable in 2026. "Still, the acquisition will likely decrease its S&P Global Ratings-adjusted EBITDA margin again this year. We believe the target will need some IT upgrades, while synergy realization will require some additional costs in 2026. Although its previous owner executed some restructuring activities, we incorporate modest further restructuring or integration spending in 2026 as SunSource raises its standard of performance. We treat all acquisition costs as operating because we view inorganic growth as part of the company's strategy. SunSource will likely realize most of its synergies, net of costs, in 2027. As a result, we forecast its EBITDA margin will fall 70-80 bps in 2026 and rise a similar amount in 2027. "Growth will begin to offset salesforce investment in 2026. The company's S&P Global Ratings-adjusted EBITDA margin deterioration over the past two years reflects salesforce investment, which has yet to fully pay off. We believe SunSource will continue to expand its sales team in 2026. The company's value-added distribution model, which generates EBITDA margins above the 5%-9% range S&P Global Ratings considers average for a distributor, requires technical salespeople with solid customer relationships. We understand continued investment in this area is necessary for the company to achieve its organic growth goals. When demand normalizes, we believe its adjusted EBITDA margin will widen to the 12%-15% range it maintained during 2021-2024. "SunSource has a limited cushion for underperformance in its credit metrics. We forecast its S&P Global Ratings-adjusted debt to EBITDA will be slightly below 7x in 2025-2026. If demand does not strengthen as we expect in 2026, revenue and gross profit will likely underperform our forecast. Costs to integrate the acquisition could also be higher than we anticipate. If it sustains adjusted leverage above 7x, this would pressure our rating. "We expect SunSource will slow salesforce investment if its credit metrics weaken. The company's gross margin performance over the past two years indicates a good level of control over its cost structure. If demand remains soft, continued salesforce investment could pressure our ratings. However, we believe the company will manage its costs to maintain S&P Global Ratings-adjusted leverage below 7x. "We anticipate further acquisitions will not increase leverage until credit metrics improve. SunSource will continue to buy small competitors, though these are excluded from our base case. This spending has averaged less than $100 million annually over the past five years. Excluding this transaction, we anticipate cash flow will cover acquisitions over the next two years. We consider the company's financial policy supportive of our rating. "The stable outlook reflects our view that U.S. industrial activity will pick up, increasing SunSource's revenue by about 5% and offsetting the company's ongoing salesforce investments and its acquisition. Volume growth of 2%-3% and a 2%-3% price increase should offset selling, general, and administrative expense growth and the costs to acquire and integrate the target. This will likely result in S&P Global Ratings-adjusted debt to EBITDA of about 6.7x for the 12 months after the transaction closes. "We could lower our ratings if we forecast SunSource will sustain leverage above 7x, which could occur if the company experiences worse-than-expected operating performance or adopts a more aggressive financial policy that includes large, debt-financed acquisitions or sizeable shareholder rewards. "Although unlikely within the next 12 months given the increased debt load, we could raise our ratings on SunSource if stronger-than-expected operating performance reduces its leverage below 5x and the company demonstrates financial policies we believe will allow it to sustain this reduced leverage." SUPERIOR ENERGY: Abaco Energy Deal No Impact on Moody's 'B1' CFR ---------------------------------------------------------------- Moody's Ratings commented that Superior Energy Services, Inc.'s (Superior Energy) definitive agreement to acquire Abaco Energy Technologies (Abaco, unrated) and related proposed $175 million add-on issuance to its subsidiary SESI, L.L.C.'s backed senior secured notes does not affect its ratings, including Superior Energy's B1 Corporate Family Rating and stable outlook and the B2 rating on the backed senior secured notes issued by SESI, L.L.C. Under the announced agreement, Superior Energy will acquire 100% of Abaco for $290 million in cash. Moody's expects the company to use the proceeds from its proposed add-on notes issuance and a portion of its cash balance to fund the acquisition. The acquisition is expected to close in the first quarter of 2026. The acquisition is in-keeping with Superior Energy's strategy of growing through the acquisition of businesses with strategic fit into its existing offerings, niche products, strong margins, and low capital spending requirements. Abaco is a leading global manufacturer of proprietary power section technologies and has historically demonstrated strong EBITDA margins and free cash flow conversion. The majority of Abaco's business is conducted in the US, however, it also has exposure to the UAE and Canada. Superior Energy's credit metrics will see some deterioration as a result of the incremental debt taken on to fund the acquisition. Moody's expects Superior Energy's credit metrics to improve post-closing as it realizes the financial benefits of the acquisition and continues to adhere to its stated financial policies. SESI, L.L.C. is a wholly-owned subsidiary of Superior Energy Services, Inc. Based in Houston, TX, Superior Energy Services, Inc. is privately owned global oilfield products and services company with a portfolio of rental and well services brands providing customers with inventory, responsive delivery, engineered solutions, and consultative service. The company provides specialized solutions to the upstream oil and gas industry through two segments: Rentals and Well Services. TECHNICAL ARTS: Has Until May 18 to Decide on Unexpired Lease ------------------------------------------------------------- The United States Bankruptcy Court for the District of New Jersey extended the deadline for Technical Arts Group LLC to assume or reject the unexpired lease of non-residential real property through and including May 18, 2026, pursuant to Section 365(d)(4) of the Bankruptcy Code. The Court found that the requested extension is in the best interests of the Debtor's estates, their creditors, and other parties in interest. This Order is without prejudice to the right of the Debtor to request additional extensions of time to assume or reject the unexpired lease consistent with section 365(d)(4) of the Bankruptcy Code. A copy of the Court's Order dated January 20, 2026, is available at https://urlcurt.com/u?l=gmu1cy from PacerMonitor.com. Counsel to Technical Arts Group LLC, Chapter 11 Debtor and Debtor-in-Possession: Richard D. Trenk, Esq. Robert S. Roglieri, Esq. TRENK ISABEL SIDDIQI & SHAHDANIAN P.C. 290 W. Mt. Pleasant Ave., Suite 2370 Livingston, NJ 07039 Telephone: (973) 533-1000 Email: rtrenk@trenkisabel.law rroglieri@trenkisabel.law About Technical Arts Group LLC Technical Arts Group LLC, a Delaware limited liability company headquartered in Moonachie, New Jersey, provides event production and premium equipment rental services, specializing in lighting, audio, video, staging, special effects, and event management for large-scale music festivals, corporate gatherings, weddings, and international events. The Company operates a 34,488-square-foot facility and employs 63 staff members, engaging additional freelance personnel as needed. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 25-22241) on November 18, 2025. In the petition signed by Kevin Mignone, as co-president and chief revenue officer, the Debtor disclosed $10,944,828 in assets and $8,654,532 in liabilities. Judge Vincent F Papalia oversees the case. Richard D. Trenk, Esq. and Robert S. Roglieri, Esq., at Trenk Isabel Siddiqi & Shahdanian P.C. represents the Debtor as legal counsel. TMT GROUP: Gets Interim OK to Use Cash Collateral ------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Pennsylvania entered an agreed interim granting TMT Group, Inc. approval to use cash collateral to fund operations. Under the interim order, the Debtor is authorized to use only cash in its bank accounts from January 8 to 30, strictly in accordance with its budget. As adequate protection, Love's Solutions, LLC (doing business as Saint John Capital Corporation), the Debtor's factor, will be granted replacement liens on its collateral, with the same validity and priority as its pre-bankruptcy liens, subject to a fee carveout. TMT Group is prohibited from collecting accounts receivable purchased by Love's Solutions and is required to file a separate motion seeking debtor-in-possession financing to continue its factoring relationship. A final hearing is scheduled for January 28. The interim order is available at https://is.gd/aicOZf from PacerMonitor.com. TMT Group entered into a factoring agreement with Saint John Capital in January 2020, under which the lender holds an interest in receivables and related cash proceeds. Because the Debtor's business depends on steady cash flow to pay truck drivers, lenders, vehicle lessors, and repair vendors, immediate access to cash collateral is essential to continue operations and fund a feasible plan of reorganization. Without the ability to use this cash, the Debtor would lack the funds necessary to operate and would face imminent shutdown, harming creditors and destroying going-concern value. Saint John Capital is represented by: Deirdre M. Richards, Esq. Elliott Greenleaf, P.C. 1105 Market Street, Suite 1700 Wilmington, DE 19801 Telephone: (302) 384-9400 dmr@elliottgreenleaf.com About TMT Group Inc. TMT Group, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 26-10074) on January 7, 2026, with $0 to $50,000 in assets and liabilities. Judge Patricia M. Mayer presides over the case. Maggie S. Soboleski, Esq., represents the Debtor as legal counsel. TONOPAH SOLAR: Gets Court OK to Tap $5MM DIP Funding ---------------------------------------------------- Clara Geoghegan of Law360 Bankruptcy Authority reports that a Delaware bankruptcy judge on Friday, January 23, 2025, authorized the owner of the Crescent Dunes Solar Energy Project to draw $5 million immediately under a proposed $10 million debtor-in-possession financing package. The company said the interim funds are critical to keeping the project running while it navigates its Chapter 11 process. The balance of the financing will be considered at a later hearing, giving creditors an opportunity to weigh in. The debtor told the court the loan will help protect the project's going-concern value as restructuring negotiations move forward, the report states. About Tonopah Solar Energy Tonopah Solar Energy, LLC owns and operates a net 110-megawatt concentrated solar energy power plant located near Tonopah in Nye County, Nevada. The power plant is also known as the Crescent Dunes Solar Energy Project, which is the first utility-scale concentrated solar power plant in the United States to be fully integrated with energy storage technology. Tonopah Solar Energy sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 20-11884) on July 30, 2020. At the time of the filing, the Debtor had estimated assets of between $500 million and $1 billion and liabilities of between $100 million and $500 million. Judge Karen B. Owens oversees the case. The Debtor tapped Young, Conaway, Stargatt & Taylor LLP and Willkie Farr & Gallagher LLP as its legal counsel, Houlihan Lokey Inc. as investment banker, and Epiq Corporate Restructuring, LLC as claims agent and administrative advisor. FTI Consulting, Inc., provides turnaround management services. TONOPAH SOLAR: Seeks to Sell Assets on March 4 Auction ------------------------------------------------------ Tonopah Solar Energy LLC seeks permission from the U.S. Bankruptcy Court for the District of Delaware to sell substantially all Assets at auction, free and clear of liens, claims, interests, and encumbrances. The Debtor owns and operates the first of its kind, net 110-megawatt concentrated solar energy power plant located near Tonopah in Nye County, Nevada. The Power Plant is the first utility-scale concentrated solar power plant in the United States to be fully integrated with energy storage technology. It operates by concentrating sunlight to heat molten salt to create a source of heat energy. The molten salt is maintained in a vessel—the hot salt tank—before it is transmitted to other areas of the Power Plant. The Power Plant then converts heat energy to high pressure steam, using the steam to spin a turbine connected to a generator that creates electricity for sale. The Power Plant has the capability to store and produce electricity at night, creating an innovative solution to the core limitation of renewable energy sources such as solar and wind— their intermittency. The technology underlying the Power Plant’s operations is unique. Unforeseen technological issues arose and led to several hot salt tank leaks at the Power Plant. These leaks contributed to the Debtor's decision to file its first chapter 11 case in 2020. After emerging from chapter 11 in December 2020, the Power Plant sustained three additional hot salt tank leaks. To prevent future leaks, in July 2023 the Debtor ultimately lowered the operating temperature of the hot salt tank, which has allowed the Power Plant to reliably produce electricity for the past two and a half years without suffering further leaks. Lowering the operating temperature also reduced the amount of energy that the Power Plant generates, which in turn has led to decreased revenues. The Debtor's financial condition was further strained without a long-term power purchase agreement in place to generate consistent revenue. To address these challenges, the Debtor determined that the most value-maximizing path forward would be to pursue a sale of the Power Plant. In light of continued operational and financial challenges facing the Power Plant, the Debtor restarted the marketing process with the assistance of its proposed investment banker, SSG Advisors, LLC. The Debtor’s prepetition marketing process generated interest in its assets and yielded several indications of interest, all of which contemplated a bankruptcy sale process. Although parties continue to express serious interest in the Debtor's business, after considering all of its alternatives, the Debtor has determined that an in-court sale process would best preserve liquidity and maximize value. The Debtor intends to conduct further outreach to potentially interested parties as part of the postpetition marketing process. The Debtor expects that additional parties will become aware of the sale of the Power Plant through the chapter 11 process, thus driving even more interest in its Assets. The Debtor seeks approval of the Bidding Procedures to establish an open process for the solicitation, receipt, and evaluation of bids on a timeline that allows the Debtor to consummate a Sale of the Assets in a manner that maximizes value for the estate within the Debtor's liquidity runway. The Debtor believes that the Bidding Procedures are in the best interests of its estate and provides interested parties with sufficient opportunity to participate. The Bidding Procedures are designed to promote participation, active bidding, and ensure an orderly marketing process. The timeline for the sale and the summary of the bidding procedures are also provided and can be found at https://urlcurt.com/u?l=0gQvp5 The Auction, if any, shall take place on March 4, 2026, at 10:00 a.m. (prevailing Eastern Time) via live auction and/or remote video, or such later date and time as scheduled by the Debtor. The Auction and Sale Notice is reasonably calculated to provide all interested parties with timely and proper notice of the Auction, if any, including the date, time, and place of the Auction. If the Debtor designates a Stalking Horse Bidder, the Debtor will announce the Stalking Horse Bidder and post the notice of the Stalking Horse Notice on the Case Website within one business day after making such designation. The Debtor submits that the Bidding Procedures are a valid exercise of its business judgment, fair and appropriate under the circumstances, consistent with procedures routinely approved by courts in this District, and in the best interest of its estate. The Debtor also seeks authority under the Bidding Procedures to designate a Stalking Horse Bidder and offer Bid Protections to such Stalking Horse Bidder. The Debtor believes that being able to offer Bid Protections is necessary to attract and retain a Stalking Horse Bidder. About Tonopah Solar Energy Tonopah Solar Energy, LLC owns and operates a net 110-megawatt concentrated solar energy power plant located near Tonopah in Nye County, Nevada. The power plant is also known as the Crescent Dunes Solar Energy Project, which is the first utility-scale concentrated solar power plant in the United States to be fully integrated with energy storage technology. Tonopah Solar Energy sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 20-11884) on July 30, 2020. At the time of the filing, the Debtor had estimated assets of between $500 million and $1 billion and liabilities of between $100 million and $500 million. Judge Karen B. Owens oversees the case. The Debtor tapped Young, Conaway, Stargatt & Taylor LLP and Willkie Farr & Gallagher LLP as its legal counsel, Houlihan Lokey Inc. as investment banker, and Epiq Corporate Restructuring, LLC as claims agent and administrative advisor. FTI Consulting, Inc., provides turnaround management services. TRASK RADIO: Files Amendment to Disclosure Statement ---------------------------------------------------- Trask Radio LLC and Advanced Aerospace LLC d/b/a Balcon Salon submitted a Combined First Amended Disclosure Statement and Joint Chapter 11 Liquidating Plan of Reorganization dated January 14, 2026. This Plan proposes to satisfy the claims of creditors, in full, by: (i) transferring the Debtors' collective interests in the real and personal property located at 674 9th Avenue, New York, New York to creditors holding allowed secured claims free and clear of liens, claims and encumbrances, and (ii) paying creditors holding allowed general unsecured claims in cash on the later of the Effective Date and when their claims become allowed. The Plan provides for one class of priority claims, two classes of secured claims, one class of unsecured claims, and one class of equity interest holders. All classes of claims and interest holders are unimpaired and, therefore, deemed to have voted to accept the plan. This Plan also provides for the payment of administrative and priority claims, in full, on the later of (i) the Effective Date or (ii) on or before 10 days after the date such claim becomes allowed, or upon such other terms as the holder of the claim and the Debtors may agree. Class 2 consists of the Secured Claim of Newtek. On the Effective Date, the Debtors will transfer their collective interests in the Real Property and the Personal Property to Newtek free and clear of Liens, claims and encumbrances in full and final satisfaction, settlement, and release of, and in exchange for, Newtek's Allowed Secured Claim. Class 3 consists of the Allowed Secured Claim of the SBA. On the Effective Date, the Debtors will transfer their collective interests in the Real Property and the Personal Property to the SBA free and clear of Liens, claims and encumbrances, to be a joint owner with Newtek in their respective Pro Rata shares, in full and final satisfaction, settlement, and release of, and in exchange for, the SBA's Allowed Secured Claim. Like in the prior iteration of the Plan, each Holder of an Allowed Class 4 Claim shall be paid in full, in Cash, on the later of (i) the Effective Date and (ii) thirty days after such Claim becomes Allowed, together with all interest accrued thereon from the Petition Date through the payment date at the prevailing prime rate on the Effective Date. Class 6 consists of Interest Holders. Interest Holders will receive no distribution, but will retain their Interest under the Plan. On the Effective Date, the Debtors will transfer their aggregate interest in the Real Property and Personal Property to Newtek and the SBA free and clear of Liens, claims and encumbrances on account of their respective Allowed Secured Claims. For purposes of calculating the Pro Rata interest of Newtek and the SBA in the Real Property and Personal Property, the ascribed value thereof shall be $14,285,493, which represents the Debtors' costs to purchase and improve the Real Property and Personal Property, less accumulated depreciation. Subject to the occurrence and no later than the Effective Date, Balcon Salon will cease any and all business operations. On January 14, 2026, the Court entered an Order granting the Debtors' motion to fix a combined hearing on the Disclosure Statement and Plan. Such hearing is scheduled to take place on March 4, 2026, at 10:00 a.m. A full-text copy of the Combined First Amended Disclosure Statement and Plan dated January 14, 2026 is available at https://urlcurt.com/u?l=hB9eeY from PacerMonitor.com at no charge. Counsel to the Debtors: Ilana Volkov, Esq. David C. McGrail, Esq. Cynthia L. Botello, Esq. McGrail & Bensinger, LLP 888-C Eighth Avenue, Suite 107 New York, NY 10019 Phone: (201) 931-6910 E-mail: ivolkov@mcgrailbensinger.com About Trask Radio LLC Trask Radio LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-12431) on Oct. 31, 2025. In its petition, the Debtor estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. The Debtor is represented by Ilana Volkov, Esq., of McGrail & Bensinger LLP. TRUCK & TRAILER: To Sell Reitnouer Trailers to Interstate 365 ------------------------------------------------------------- Truck & Trailer Leasing Avenue LLC seeks permission from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to sell Reitnouer trailers, free and clear of liens, claims, interests, and encumbrances. The Debtor owns certain trailers that are described in the Bill of Sale attached as Exhibit A at https://urlcurt.com/u?l=cZrytY The lienholder of the Property is the Flagstar Financial and Leasing LLC. The Debtor anticipates that all proceeds will be paid to Flagstar Financial and Leasing LLC after selling expenses are paid (if any). The Debtor requests to sell the Property free and clear of all liens, with liens to attach to proceeds. The Debtor wants to sell the Trailers to Interstate 365 LLC for $320,000.00. The Trailers shall be sold on an "AS IS" basis, without representation, warranty or guaranty of any kind, except as otherwise stated in the Bill of Sale. The offer submitted by Interstate 365 LLC for the Trailers is the best offer that Debtor has received to date and the best that will be received, and the price offered by Interstate 365 LLC constitutes fair and reasonable consideration for the Trailers. The current offer represents the best offer in the opinion of the Debtor. The Debtor seeks entry of an Order of authorizing the Debtor to sell the Property to Interstate 365 LLC pursuant to the terms and conditions of the Bill of Sale. About Truck & Trailer Leasing Avenue LLC Truck & Trailer Leasing Avenue LLC specializes in long-distance freight transportation services, operating in Illinois. Truck & Trailer Leasing Avenue LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-05906) on April 16, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Honorable Bankruptcy Judge Jacqueline P. Cox handles the case. The Debtor is represented by Saulius Modestas, Esq. at MODESTAS LAW OFFICES, P.C. TRUE MADE: Court OKs $370,000 DIP Loan -------------------------------------- True Made Foods, Inc. got the green light from the U.S. Bankruptcy Court for the Eastern District of Virginia, Alexandria Division, to obtain post-petition financing to get through bankruptcy. The court issued an order authorizing the Debtor to obtain $370,000 in financing from Robin Phelan, the lender and a non-insider, consistent with the terms set forth in their letter loan agreement. The terms of the agreement include the following: 1. The loan bears 15% interest and is payable in five monthly installments of $64,392.27 beginning February 28 through June 30, with the remaining balance due July 31. 2. The loan will be secured by a first-priority purchase-money security interest in inventory purchased with the loan proceeds, and the related accounts receivable and proceeds. 3. The loan will be guaranteed by Abraham Kamarck, the Debtor's chief executive officer and sole director. 4. The Debtor will pay a 4% origination fee of $14,800, with half due at funding and half at maturity. 5. The Debtor will reimburse the lender up to $3,000 for fees and expenses related to the loan. 6. The lender will receive a warrant to acquire 2% of the shares of the Debtor (or any successor) at $0.0081 per share, subject to dilution, exercisable for 10 years from funding. 7. If the lender becomes partially or fully unsecured due to the Debtor's use of cash collateral, he will hold a super-priority administrative claim senior to all other administrative claims. The order is available at https://is.gd/nV6yvC from PacerMonitor.com. True Made Foods operates a business producing and distributing no-sugar condiments such as ketchup and barbecue sauces, and it urgently needs to replenish its ketchup inventory because its prior consignment-based financing source, Kickfurther, will not fund companies in bankruptcy. The proposed production run consists of 27,689 cases of ketchup at a total cost of approximately $359,036 and is expected to support sales from March through June 2026, by which time the Debtor anticipates confirming a Chapter 11 plan. About True Made Foods Inc. True Made Foods, Inc operates a business producing and distributing no-sugar condiments. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 25-12269) on October 30, 2025. In the petition signed by Abraham Kamarck, chief executive officer, the Debtor disclosed up to $500,000 in assets and up to $10 million in liabilities. Judge Klinette H. Kindred oversees the case. Steven B. Ramsdell, Esq., at Tyler, Bartl, & Ramsdell, PLC, represents the Debtor as legal counsel. UNIVERSAL DESIGN: To Sell Jacksonville Property to Fuada Velic -------------------------------------------------------------- Universal Design Solutions, LLC, seeks permission from the U.S. Bankruptcy Court for the Middle District of Florida, Jacksonville Division, to sell Property, free and clear of liens, claims, interests, and encumbrances. The Debtor's Property is located at 11555 Central Parkway #1002, Jacksonville, FL 32224. The Debtor wants to sell the Property to Fuada Velic for the purchase price of $270,000. The purchase price was arrived at through arms-length negotiations. The Property is encumbered by TD Bank, N.A. and UDS, Inc. The Debtor seeks to sell the Property free and clear of all liens and encumbrances. 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., at Akerman LLP, in West Palm Beach, Florida. UNIVERSITY OF HARTFORD: S&P Affirms 'BB+' LT Rating on N/P Bonds ---------------------------------------------------------------- S&P Global Ratings affirmed its 'BB+' long-term rating on University of Hartford (UHart), Conn.'s series N and P bonds. The outlook is stable. S&P said, "We analyzed the university'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 enrollment and demand metrics will remain steady, financial operations will remain near breakeven on a full-accrual basis as endowment draws steadily decline, and financial resource ratios will remain near current levels. "We could revise the outlook to negative or lower the rating if enrollment and demand metrics significantly deteriorate, if full-accrual operating deficits continue to an extent that financial resource ratios materially worsen or available liquidity substantially declines. We would also view material additional debt issuance without a commensurate increase in financial resources or a resumption of covenant compliance issues negatively. "We could revise the outlook to positive or raise the rating if enrollment and demand metrics remain stable in line with management's strategic targets, if full-accrual operating margins remain near breakeven without reliance on supplemental endowment draws, and if available liquidity improves substantially while the average age of plant declines materially." VEGAS CUSTOM: Unsecured Creditors to Split $40,620 in Plan ---------------------------------------------------------- Vegas Custom Glass LLC filed with the U.S. Bankruptcy Court for the District of Nevada a First Amended Plan of Reorganization for Small Business dated January 14, 2026. The Debtor is a commercial and residential glass installation and repair company. The Debtor is owned by Vincent Regala (100% ownership interest. Prior to filing, the business struggled with rising costs across materials, labor, and operations due to widespread supply chain issues and inflation, while being unable to sufficiently increase pricing on existing contracts, resulting in shrinking profit margins. Additionally, the company experienced unusually long delays in receiving payments from commercial construction clients, with collection periods far exceeding normal timelines and creating serious cash flow problems. Consequently, management decided to file for Chapter 11 protection under Subchapter V to reorganize their debts, streamline operations, and continue business activities while working toward a more financially stable future. This includes transitioning away from commercial projects and focusing exclusively on residential projects. The Plan proposes that the Debtor set aside $6,000.00 per month for 60 months, totaling $360,000.00. The source of the plan funding is from business operations, sale of superfluous business assets, and capital contributions from Mr. Regala as needed. Class 3 consists of all non-priority uunsecured claims. All unsecured non-disputed claims shall divide a total pot of $40,620.64 on a pro rata basis totaling 1.649839476234989% of each allowed claim. Class 4 consists of equity security holders of the Debtor. The equity security holder, the Debtor's member, shall retain all current interests. The means for implementation shall come from business operations, sale of unencumbered assets and capital contributions from Mr. Regala as needed. A full-text copy of the Plan of Reorganization dated January 14, 2026 is available at https://urlcurt.com/u?l=7ZWIn5 from PacerMonitor.com at no charge. Counsel to the Debtor: James T. Leavitt, Esq. LEAVITT LEGAL SERVICES, P.C. 601 South 6th Street Las Vegas, NV 89101 Telephone: (702) 385-7444 Facsimile: (702) 385-1178 E-mail: jamestleavittesq@gmail.com | leavittecf@gmail.com About Vegas Custom Glass Vegas Custom Glass, LLC provides glass and mirror services in Las Vegas, Nevada. The Company offers custom showers, frameless shower doors, storefront glass, glass repairs, and wine room enclosures for residential and commercial clients. It is licensed, bonded, insured, and accredited by the Better Business Bureau. Vegas Custom Glass, LLC in Las Vegas, NV, sought relief under Chapter 11 of the Bankruptcy Code filed its voluntary petition for Chapter 11 protection (Bankr. D. Nev. Case No. 25-13929) on July 9, 2025, listing $298,039 in assets and $1,205,768 in liabilities. Vincent Regala as owner, signed the petition. LEAVITT LEGAL SERVICES, P.C. serve as the Debtor's legal counsel. VISIONWRIGHTS: Files Emergency Bid to Use Cash Collateral --------------------------------------------------------- VisionWrights, LLC asks the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, for authority to use cash collateral and provide adequate protection. The Debtor requests interim and final approval to use cash collateral strictly for ordinary-course operational and administrative expenses as outlined in its proposed budget. It argues that immediate use of cash collateral is necessary to prevent shutdown and loss of asset value before a final hearing can be held. To protect the interests of the lenders, the Debtor proposes granting replacement liens on post-petition collateral of the same type, extent, and priority as any valid pre-bankruptcy liens, excluding proceeds from avoidance actions. Formed in 2018 and wholly owned by Mark Ziler, VisionWrights is a data, analytics, and AI consulting firm that relied increasingly on short-term, high-cost financing beginning in 2022 to manage cash-flow gaps. Although the Debtor prioritized timely repayment and continued servicing clients, a severe medical emergency involving the owner's teenage son in late 2023 significantly reduced management availability at a critical time. Combined with delayed receivables, underperforming sales investments, and broader market challenges, the accumulated high-interest debt became unsustainable, leading to the bankruptcy filing as a means to reorganize and preserve the business. The Debtor describes its complex pre-bankruptcy financing structure involving multiple merchant cash advance providers and lenders that may assert liens on its cash collateral, including the U.S. Small Business Administration, Cadence Bank, and several private financing entities. Due to the manner in which UCC-1 financing statements were filed through third-party servicers, the Debtor cannot yet determine lien priority with certainty, though it believes the SBA holds a first-priority position based on the earliest filing. The Debtor acknowledges that certain revenues constitute cash collateral under the Bankruptcy Code and that these lenders may claim interests in those funds, but it is not aware of any other creditors asserting such interests. A copy of the motion is available at https://urlcurt.com/u?l=tBRrYb from PacerMonitor.com. About VisionWrights LLC VisionWrights, LLC is a creative services firm offering marketing, branding, and digital content solutions to businesses. It focuses on developing strategies and materials that strengthen brand presence and engage target audiences. VisionWrights sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-50440) on January 9, 2026. In its petition, the Debtor reported between $100,001 and $1 million in assets and between $1 million and $10 million in liabilities. Honorable Bankruptcy Judge Sage M. Sigler handles the case. The Debtor is represented by Will B. Geer, Esq., at Rountree Leitman Klein & Geer, LLC. W.R. GRACE: S&P Rates Proposed $500MM Senior Secured Notes 'B-' --------------------------------------------------------------- S&P Global Ratings assigned its 'B-' issue-level rating and '3' recovery rating to W.R. Grace Holdings LLC's proposed $500 million senior secured notes due 2033. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default. S&P said, "We expect the company will use the proceeds from these notes to repay its existing senior secured notes due 2027. Therefore, we expect the transaction will be leverage neutral and not materially affect W.R. Grace's credit metrics." However, the transaction will alleviate the company's refinancing risk for at least the next few years. Once the 2027 notes are repaid, W.R. Grace's nearest maturity will be in 2029. Overall, the company's leverage was relatively stable in 2025, despite a 12% decrease in its company-adjusted EBITDA, primarily due to the $650 million of total equity contributed by Standard Industries. W.R. Grace's weaker earnings in 2025 stemmed from softer demand in its Performance Catalyst Solutions (PCS) segment, primarily due to polyolefin catalyst inventory drawdowns by its petrochemical customers as they continue to confront trough margins and lower operating rates amid industry overcapacity. S&P said, "We don't expect a significant inventory rebuild in the foreseeable future, given our downbeat outlook for petchem industry profitability. However, the demand for W.R. Grace's polyolefin catalysts has stabilized in recent quarters and we don't anticipate any further deterioration in 2026. Fluid catalytic cracking (FCC) catalyst volume has remained stable, and we anticipate it will continue to benefit from steady refining margins and transportation fuel demand." In addition, the company's Advanced Refining Technologies (ART) business, fully owned as of November 2025, will likely generate modest EBITDA and contribute positive free cash flow over the next 12 months, though it will negatively impact its margins due to the catalyst's high metals content. In materials technologies, earnings remain weak, due to the segment's exposure to coatings and plastics, and we don't expect a material improvement in 2026. All our existing ratings on Grace--including S&P's 'B-' issuer credit rating and stable outlook, 'B-' issue-level rating on its senior secured debt, and 'CCC' issue-level rating on its senior unsecured notes--are unchanged. Issue Ratings--Recovery Analysis Key analytical factors -- S&P's 'B-' issue-level rating on the company's senior secured debt, including its revolving credit facility and senior secured notes, is unchanged. Its '3' recovery rating is also unchanged, indicating its expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default. -- The borrower under the senior secured credit facility is W.R. Grace Holdings LLC, with subsidiary guarantees provided by each direct and indirect, existing, and future materially wholly owned restricted domestic subsidiary, in addition to a parent guarantee by W.R. Grace Midco Holdings LLC. -- The facility is secured by a first-lien security interest in substantially all property of the borrower and guarantors and ranks pari passu with the senior secured notes. In addition to W.R. Grace Holdings LLC, the revolver facility includes subsidiary W.R. Grace & Co.-Conn as a coborrower. -- S&P's 'CCC' issue-level rating and '6' recovery rating on the company's senior unsecured notes are also unchanged. The '6' recovery rating indicates its expectation for negligible (0%-10%; rounded estimate: 5%) recovery. Simulated default assumptions -- S&P's simulated default scenario considers an extended global economic recession, rising raw material costs, and intensifying competition that result in financial distress for the company if the conditions continue for an extended period and it materially exhausts its liquidity to fund its cash shortfalls. -- $425 million revolver is 85% utilized. -- Six months of accrued and unpaid interest on all funded debt. -- All scheduled principal amortization made up until the year of default. -- S&P said, "We estimate a $2 billion gross recovery value assuming emergence EBITDA of $326 million and a 6x multiple. We anticipate the company would cut costs and rationalize its business such that its profitability generally normalizes. Our 6x multiple reflects the company's large market share and long-established operating platform in specialty chemicals." -- Year of default: 2027 -- EBITDA at emergence: $326 million -- Implied enterprise value multiple: 6x Simplified waterfall -- Gross recovery value: $1.959 billion -- Less assumed estimated unfunded pension claims: $162 million* -- Adjusted gross recovery value: $1.797 billion -- Less 5% administration expense: $90 million -- Net recovery value (after 5% administrative expenses): $1.707 billion -- Valuation split (guarantor/nonguarantor): 60%/40% -- Less unpledged 35% of foreign subsidiary stock: $225 million -- First-lien recovery (including recovery on deficiency claims): $1.593 billion -- First-lien debt outstanding at default: $2.619 billion --First-lien recovery expectations: 50%-70% (rounded estimate: 60%) -- Unsecured recovery: $225 million -- Total unsecured claims: $2.318 billion --Unsecured recovery expectations: 0%-10% (rounded estimate: 5%) *S&P assumes unfunded pension claims of $54 million domestic and $107 million foreign. All debt amounts at default include six months of accrued prepetition interest. Collateral value includes asset pledges from obligors (after priority claims), including equity pledges (subject to a limit of 65% of foreign stock pledges). WATCHTOWER FIREARMS: Updates Liquidating Plan Disclosures --------------------------------------------------------- Watchtower Firearms LLC submitted a Revised First Amended Disclosure Statement for First Amended Plan of Liquidation dated January 15, 2026. The Debtor believes the Plan maximizes value for all stakeholders. The Plan contemplates a liquidation and wind down of the Debtor's estate to provide distributions to creditors in accordance with the absolute priority rule and certain settlements provided for in the Plan in the most efficient and expeditious manner possible. The Revised First Amended Disclosure Statement does not alter the proposed treatment for unsecured creditors and the equity holder: * Class 2 consists of General Unsecured Claims. Except to the extent that a holder of an Allowed General Unsecured Claim agrees to less favorable treatment of such Claim, in full and final satisfaction, settlement, release, and discharge of such Allowed General Unsecured Claim, on or prior to the Effective Date, each such holder shall receive its Pro Rata right to recovery from the Liquidation Trust, in the priority set forth in the Liquidation Trust Agreement. This Class will receive a distribution of 100% of their allowed claims. Class 2 is impaired. The allowed unsecured claims total $4,700,000.00. * Class 3 consists of Unsecured Liquidated Claims by Interestholders. Except to the extent that a holder of an Allowed Unliquidated Unsecured Claim agrees to less favorable treatment of such Claim, in full and final satisfaction, settlement, release, and discharge of such Allowed liquidated or unliquidated Unsecured Claim of an Interestholder, on or prior to the Effective Date, each such holder shall receive its Pro Rata right to recovery from the Liquidation Trust, in the priority set forth in the Liquidation Trust Agreement. Class 3 is impaired. The amount of claim in this Class total $3,448,000.00. * Class 5 consists of Interest of Interestholders. Effective Date, all Interests in the Debtor shall be canceled, released and extinguished, and will be of no further force or effect, but in full and final satisfaction, settlement, release, and discharge of such Interests, on or prior to the Effective Date, each such holder shall be entitled to no recovery under the Plan until all prior Classes are paid in full (except for Class 4). The amount of claim in this Class total $21,000,000.00. On the Liquidation Trust Establishment Date, Steven Bellah of KCP Advisory Group, LLC will be appointed as the liquidating trustee (the "Liquidation Trustee") to carry out the liquidation and disposition of the Liquidation Trust Assets. The terms of the Liquidation Trustee's engagement shall be acceptable to the Debtor, and the Creditors' Committee. The terms of the Liquidation Trust will establish the terms and conditions of the Liquidation Trust, the rights of, and limitations on, the Liquidation Trust Interests, and pursuant to which the Liquidation Trustee shall manage and administer the Liquidation Trust Assets, and will be in form and substance mutually agreeable to the Debtor. Pursuant to the terms of the Plan, the Liquidation Trust will have the following beneficiaries (a) the holders of Allowed General Unsecured Claims, (b) the Interestholders with Liquidated Allowed Unsecured Claims (the "Trust Beneficiaries") and (c) potentially Interestholders who support the Plan. Based on the Liquidation Trust Budget, which has been approved by Buyer, the Debtor and Creditors' Committee, the Buyer agrees to fund the Liquidation Trust, as soon as practicable after the Effective Date, with $225,000.00 in cash consideration, provided that the Liquidation Trustee is appointed. Having served as the Chief Restructuring Officer of the Debtor during the Chapter 11 Case, the Liquidation Trustee is very familiar with the facts surrounding the Retained Causes of Action, including the claims against Dion Podgurny and F-1 Firearms, LLC, asserted by the Debtor in Adversary Case. The Chief Restructuring Officer has played a critical role assisting the Debtor to navigate throughout this Chapter 11 Case, including obtaining post-petition financing, selling the Debtor's assets and initiating the Adversary Proceeding. A full-text copy of the Revised First Amended Disclosure Statement dated January 15, 2026 is available at https://urlcurt.com/u?l=mkYGrC from PacerMonitor.com at no charge. Watchtower Firearms LLC is represented by: H. Joseph Acosta, Esq. Jeff Carruth, Esq. Aimee E. Marcotte, Esq. CONDON TOBIN 8080 Park Lane, Suite 700 Dallas, TX 75231 Tel: (214) 265-3852 Fax: (214) 265-6311 Email: jacosta@condontobin.com About Watchtower Firearms LLC Watchtower Firearms LLC is a veteran-owned company offering a diverse range of firearms, including custom rifles, special edition rifles, and handguns. The Company serves military, law enforcement, hunting, and personal use markets. In addition to firearms, it provides suppressors, components, and specialized gear tailored to meet the needs of its customers. Watchtower Firearms LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 25-40684) on Feb. 27, 2025. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. Judge Mark X. Mullin oversees the case. Joseph Acosta, Esq., at CONDON TOBIN, is the Debtor's counsel. WHITE ROCK MEDICAL: Seeks Chapter 11 Bankruptcy in Texas -------------------------------------------------------- On January 20, 2026, White Rock Medical Center LLC filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. According to court filings, the debtor reports between $50 million and $100 million in debt owed to approximately 1,000 to 5,000 creditors. About White Rock Medical Center LLC White Rock Medical Center LLC operates a healthcare facility providing medical and hospital services to patients in Texas. White Rock Medical Center LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-90115) on January 20, 2026. In its petition, the debtor reports estimated assets ranging from $10 million to $50 million and estimated liabilities between $50 million and $100 million. Honorable Bankruptcy Judge Christopher M. Lopez handles the case. The debtor is represented by Omar Jesus Alaniz, Esq. of Reed Smith LLP. WHITEHALL PHARMACY: Seeks to Use Cash Collateral ------------------------------------------------ Whitehall Pharmacy, LLC asks the U.S. Bankruptcy Court for the District of Arkansas for authority to use cash collateral and provide adequate protection. The Debtor operates a network of pharmacies serving approximately 80,000–90,000 patients across Pulaski, Lincoln, and Jefferson counties, employing about 40 staff. The Debtor requests immediate access to cash collateral including cash on hand, accounts receivable, and proceeds from encumbered inventory, subject to liens asserted by secured creditors Stone Bank and Cardinal Health, to fund ongoing operations, payroll, and necessary expenses while preserving going-concern value. The Debtor's prior authority to use cash collateral, under the second amended cash collateral order, expired on December 31, 2025. Operational challenges have arisen, including the Debtor's president requiring neck surgery and the disengagement of its former accountants, prompting the employment of Independent RX Consulting, LLC to maintain accurate financial records. The Debtor's Chapter 11 filing was prompted by a disputed litigation claim exceeding $1.4 million from Jefferson Regional Medical Center, which the Debtor contests. The Debtor identifies Stone Bank and Cardinal Health as the only creditors asserting interests in the cash collateral, with respective secured claims estimated at $1.2 million and $1.1–$1.4 million. Adequate protection proposed includes replacement liens on post-petition collateral, continuation of ordinary-course debt service, ongoing reporting and compliance with monthly operating reports, maintenance of insurance, payment of taxes and utilities, and adherence to terms similar to the second amended cash collateral order. The Debtor requests an interim order effective January 1, 2026, to prevent disruption of pharmacy operations, and an expedited preliminary hearing under Fed. R. Bankr. P. 4001(b) to authorize continued use of cash collateral while scheduling a final hearing for full approval. The Debtor emphasizes that without access to cash collateral, operations, patient care, and reorganization efforts would suffer immediate and irreparable harm. A copy of the motion is available at https://urlcurt.com/u?l=1NQn3b from PacerMonitor.com. About Whitehall Pharmacy LLC Whitehall Pharmacy, LLC operates pharmacies in multiple locations in Arkansas. Whitehall Pharmacy sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No. 25-12406) on July 21, 2025, listing between $1 million and $10 million in assets and liabilities. Floyd Lelan Stice, company owner, signed the petition. Judge Phyllis M. Jones oversees the case. The Debtor tapped Charles Darwin Davidson, Sr., Esq., at Davidson Law Firm, as bankruptcy counsel and Sykes & Company, P.A. as accountant. WISCONSIN LLC: Involuntary Chapter 11 Case Summary -------------------------------------------------- Alleged Debtor: Wisconsin LLC 101 Juneau Street Elroy WI 53929 Involuntary Chapter 11 Petition Date: January 22, 2026 Court: United States Bankruptcy Court Western District of Wisconsin Case No.: 26-10109 Petitioners' Counsel: Jonathan Goodman, Esq. 500 East Lake View Avenue Milwaukee WI 53217 Tel: 414-460-0210 Email: jonathanvgoodman@gmail.com A full-text copy of the Involuntary Petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/LZNZ35Q/Wisconsin_LLC__wiwbke-26-10109__0001.0.pdf?mcid=tGE4TAMA Alleged creditors who signed the petition: Petitioner Nature of Claim Claim Amount TK Machine LLC Machinery $26,361 29901 Northland Avenue Elroy WI 53929 Marson's Milk Dairy Product $10,675 Matin's Bulk Milk Service Inc. 101 Water Street Wilton WI 54670 Lindemann Hauling Inc. Trucking $9,050 421 South Main Street Elroy WI 53929 Printing Solutions, Inc. Printing $2,024 P.O. Box 17916 Clearwater WI 33762 WGS & LTG Holdings Rent $68,915 3285 Industrial Road Richfield WI 53076 Wisconsin, Inc. Rent $403,174 3285 Industrial Road Richfield WI 53076 ZAMA&ZAMA INC: Income & New Value Contribution to Fund Plan ----------------------------------------------------------- Zama&Zama Inc. filed with the U.S. Bankruptcy Court for the District of Nevada a Disclosure Statement to accompany Plan of Reorganization dated January 14, 2026. As of the Petition Date, the Debtor operated twelve Karma & Luck retail stores located in various malls throughout the country, which stores sell jewelry and home décor items including signature pieces engraved with precious gemstones and symbols for spirituality, harmony, and good karma. The Debtor has been in business since 2016. Vladi Bergman serves as the Debtor's President and Chief Executive Officer, and he also owns 91% of the company's stock. Like many retail businesses, the Debtor’s revenue is highly seasonal, with it generally earning a substantial amount of its total gross revenue for the year in November and December Holiday Season. The Debtor filed for bankruptcy to restructure about several million in secured claims, including a working capital loan with Bank of America, financing from Shopify, and various equipment and receivables financing arrangements. The Debtor also filed for bankruptcy to address about $800,000 in rent arrearages owed to its various landlords, and about $4 million in general unsecured claims, about $2.5 million of which is owed to Settle, Inc., a funder of consumer-packaged goods companies. Class 12 consists of Allowed General Unsecured Claims. Except to the extent that a Creditor with an Allowed General Unsecured Claim agrees to less favorable treatment, Holders of Class 12 Allowed Claims shall receive, in full and final satisfaction of their claims their Pro Rata share of a New Value Contribution from a third-party funding source in the total amount of $225,000, or such other greater amount the Court may require at the Confirmation Hearing as consistent with applicable law and the facts, circumstances and equities of this case, which sum shall be payable within thirty days of the Effective Date or such Claim being Allowed. Class 12 is Impaired under the Plan. Class 13 consists of Holders of Equity Interests. Holders of Class 13 Equity Interests shall retain their Equity Interests in the Debtor, but subject to the terms of the Plan. Class 13 is Unimpaired under the Plan. The Plan shall be funded by two principal means: (a) the Debtor’s cash on hand and projected income; and (b) the New Value Contribution. On and after the Effective Date, all of the Debtor's assets shall vest in the Reorganized Debtor, and the Reorganized Debtor shall continue to exist as a separate entity in accordance with applicable law. The Debtor's existing articles of incorporation and by-laws (as amended, supplemented, or modified) shall continue in effect for the Reorganized Debtor following the Effective Date, except to the extent that such documents are amended in conformance with the Plan or by proper corporate action after the Effective Date. A full-text copy of the Disclosure Statement dated January 14, 2026 is available at https://urlcurt.com/u?l=1PvUET from PacerMonitor.com at no charge. Counsel to the Debtor: Matthew C. Zirzow, Esq. Larson & Zirzow, LLC 850 E. Bonneville Ave. Las Vegas, NV 89101 Telephone: (702) 382-1170 Facsimile: (702) 382-1169 E-mail: mzirzow@lzlawnv.com About Zama&Zama Inc. Zama&Zama Inc. doing business as Karma and Luck, operates a retail business specializing in spiritual jewelry and home decor. Its product offerings include bracelets, necklaces, solid gold pieces, earrings, rings, charms, and anklets, as well as Tree of Life displays, ceramic decor, sage kits, wooden home blessings, large ceramics, and singing bowls. The Company is based in Las Vegas, Nevada, and sources its merchandise internationally, including from India and China. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 25-13501) on June 18, 2025. In the petition signed by Vladi Bergman, president and chief executive officer, the Debtor disclosed up to $10 million in both assets and liabilities. Judge August B. Landis oversees the case. Matthew C. Zirzow, Esq., at Larson & Zirzow, LLC, represents the Debtor as legal counsel. ZELIS HOLDINGS: S&P Alters Outlook to Positive, Affirms 'B' ICR --------------------------------------------------------------- S&P Global Ratings revised its outlook on Zelis Holdings L.P. to positive from stable and affirmed its 'B' ratings on the company. The positive outlook reflects S&P's expectation of sustained profitable growth, with improvement in the company's credit metrics through 2026. Zelis is benefiting from sustained revenue growth, improved scale, and strong EBITDA margins. Because of these factors, cash flow generation is improving, and leverage is expected to decline through 2026. The affirmation of the ratings and the revision of the outlook to positive reflects Zelis' growing and increasingly well-established market presence. S&P said, "We believe Zelis has steadily strengthened its competitive position by expanding its customer base and deepening its presence across its product segments. As a result, we revised our assessment of its business risk profile to fair from weak." S&P said, "The rating action also reflects our view that the company's financial risk profile remains constrained by high financial leverage (with pro forma debt to EBITDA of 5.7x for the 12 months that ended with third-quarter 2025, per our calculations). This limits its financial flexibility and encumbers its cash flow resources. "Our updated forecast reflects its reliance on internally generated cash flow to support growth, which we expect will be organically driven. We expect a stable EBITDA margin, and we expect revenue of $2.5 billion-$2.6 billion in 2026 (compared with revenue of $1.2 billion in 2022, suggesting a compound annual growth rate of about 22% over four years). This will lead to sustained improvement in the company's credit metrics. "However, our conviction about whether it can sustain this trend is constrained by the possibility of another credit-eroding dividend-based recapitalization. We expect that Zelis will remain a sponsor-controlled company. But it has materially scaled up its operations and valuation over the past few years, and we believe there's growing potential for alternative capital sourcing (that is, new equity via an initial public offering) as well as a corresponding shift in financial policy. This would lead to a less debt-intensive capital structure, prospectively. "The positive outlook reflects our expectation that Zelis will see top-line growth, driven primarily by organic development (with modest support from tuck-in acquisitions). If Zelis were to meet our performance expectations, we'd expect debt to EBITDA of 4.5x-5.0x and EBITDA interest coverage of 3.0x-3.5x by year-end 2026. "We could revise the outlook to stable if operating performance were to meaningfully deteriorate relative to our expectations or if the company were to materially alter its capital structure (perhaps in connection with a material transaction involving a dividend payment, a change in ownership, or the pursuit of a more aggressive acquisition-oriented growth strategy). "We believe that such developments would likely result in meaningful deterioration of Zelis' credit metrics relative to our baseline (run-rate) expectation through 2026. This would likely push financial leverage (debt to EBITDA) above 7.5x and coverage below 2.0x on a sustained basis." S&P could raise the ratings on Zelis over the next 12 months if: -- The company were to meet S&P's expectations for growth and performance; -- The company were to maintain at least adequate liquidity, per S&P's assessment; and -- Financial leverage were to diminish sustainably below 5.0x and EBITDA coverage were to sustainably be above 3.0x (indicating a shift in the company's financial policy mindset). ********* On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. 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