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260403.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, April 3, 2026, Vol. 30, No. 93 Headlines 218 7TH ST. SE: Case Summary & Two Unsecured Creditors 741 INC: Seeks to Extend Plan Exclusivity to May 26 ACADIAN ASSET: S&P Alters Outlook to Positive, Affirms 'BB+' ICR ACRISURE HOLDINGS: S&P Alters Outlook to Negative, Affirms 'B' ICR ADVANCED INTEGRATION: Moody's Ups CFR to 'B3', Outlook Stable AMC ENTERTAINMENT: Registers 15.4MM Shares for Selling Stockholders AMI ATHLETICS: Voluntary Chapter 11 Case Summary ASCENT RESOURCES: Fitch Hikes LongTerm IDR to 'BB', Outlook Stable AVALARA INC: Fitch Affirms 'B' LongTerm IDR, Outlook Positive B-YOU ACADEMY: Seeks to Hire Xavier Flores Ríos as Accountant BETHUNE SUITES: Case Summary & Five Unsecured Creditors BLUE GALLERIA: Plan Exclusivity Period Extended to June 8 BOISE CASCADE: Moody's Alters Outlook on 'Ba1' CFR to Stable BRIGHT MOUNTAIN: Posts $13.5MM Loss in FY25, Flags Liquidity Crunch BURFORD CAPITAL: S&P Downgrades ICR to 'BB-', Outlook Stable CALL CORP: Moody's Assigns 'Caa1' CFR, Outlook Stable CAROLINA CLEANING: Seeks to Hire R. Keith Johnson PA as Attorney CATAWBA NATION: $345MM Loan Add-on No Impact on Moody's 'B2' CFR CHICAGO RIVET & MACHINE: Cherry Bekaert Raises Going Concern Doubt CLEARSIDE BIOMEDICAL: Seeks to Extend Plan Exclusivity to June 22 CROSBY MARINE: Gets Interim OK for DIP Financing From JMB CUMULUS MEDIA: Seeks to Hire KPMG LLP as Tax Consultant DCA OUTDOOR: Comm Taps Geiger Law/Pospisil Swift as Special Counsel ETEGRA INC: Seeks to Extend Plan Exclusivity to June 2 FIFTY NINE: Voluntary Chapter 11 Case Summary FMC CORP: Fitch Alters Outlook on 'BB+' LongTerm IDR to Negative G D FAMILY: Gets Final OK to Use Cash Collateral GRACE LIMOUSINE: Files Amendment to Disclosure Statement HAN & JU: Seeks to Hire Larson & Zirzow LLC as Bankruptcy Counsel HANSEN-MUELLER CO: Hires Del Peterson and Associates as Auctioneer I A P CONSTRUCTION: Cash Collateral Access Extended to April 23 JAZZ PHARMACEUTICALS: Fitch Affirms BB LongTerm IDR, Outlook Stable JUMPSTART COMMUNICATIONS: Case Summary & 18 Unsecured Creditors K & M AMUSEMENT: Hires Kessler Realty as Real Estate Broker LBM ACQUISITION: Moody's Cuts CFR to Caa1, Alters Outlook to Stable LENMAR ROBERTSON: Case Summary & Two Unsecured Creditors LGI HOMES: S&P Lowers ICR to 'B-' on Slower Demand, Outlook Neg. MAGELLAN INTERNATIONAL: Moody's Lowers Revenue Bond Rating to B2 MANNINGTON MILLS: Moody's Alters Outlook on 'B2' CFR to Positive MASTERBRAND INC: Moody's Cuts CFR to 'Ba3', Outlook Stable MIAMI JEWISH: Fitch Alters Outlook on 'BB+' IDR to Negative NATIONAL CAMPUS: S&P Affirms 'B' Long-Term Rating on Revenue Bonds NIGHTFOOD HOLDINGS: Issues $1.18MM Convertible Note to Mast Hill NORTH STAR: Committee Taps Dentons US LLP as Counsel NORTH STAR: Committee Taps FTI Consulting as Financial Advisor OCEANSIDE COLLEGIATE: Moody's Affirms 'Ba1' Revenue Bond Rating OPTION CARE: Moody's Affirms 'Ba3' CFR & Alters Outlook to Positive OSCAR ACQUISITION: S&P Lowers ICR to 'CCC' on Covenant Tightness PENNSYLVANIA BREWING: Case Summary & 20 Top Unsecured Creditors PUERTO RICO: PREPA Bondholders Not Entitled to Administrative Claim QUALITY PORTABLE: Case Summary & 16 Unsecured Creditors REEL TRIMS: Case Summary & 20 Largest Unsecured Creditors S & A INDUSTRIAL: Seeks to Hire Tucker Arensberg PC as Attorney SAMYS OC: Court Extends Cash Collateral Access to May 30 SHELLE REALTY: Seeks to Hire Verdolino & Lowey PC as Accountant SJW AUTOMOTIVE: Seeks to Tap Peak Business as Valuation Specialist SOTERA HEALTH: Moody's Alters Outlook on 'B1' CFR to Positive STL HOLDING: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable STOLI GROUP: Trustee Taps HMP Advisory as Financial Advisor STOLI GROUP: Trustee Taps Thompson Coburn LLP as Legal Counsel STUDIO CHIQUE: Case Summary & 17 Unsecured Creditors SVETNESS CORP: Gets Final OK to Use Cash Collateral TELLICO RENTALS: Gets Extension to Access Cash Collateral THAI EXPRESS: Taps Christin's Accounting & Advisory as Accountant TRUENOORD LTD: S&P Affirms 'B+' Long-Term ICR, Outlook Stable VIAVI SOLUTIONS: Moody's Alters Outlook on 'Ba3' CFR to Stable WHIRLPOOL CORP: Fitch Lowers LongTerm IDR to BB-, Outlook Negative XCEL BRANDS: Secures $500,000 Cash Collateral for Term Loan A [^] BOOK REVIEW: A History of the New York Stock Market ********* 218 7TH ST. SE: Case Summary & Two Unsecured Creditors ------------------------------------------------------ Debtor: 218 7th St. SE, LLC 218 7th St. SE Washington, DC 20003 Business Description: 218 7th St. SE, LLC, a single-asset real estate entity as defined under 11 U.S.C. Section 101(51B), owns a mixed-use commercial property at 218 7th St. SE Washington, D.C. 20003, that combines retail and residential units across multiple floors. Chapter 11 Petition Date: March 31, 2026 Court: United States Bankruptcy Court District of Columbia Case No.: 26-00151 Judge: Hon. Elizabeth L Gunn Debtor's Counsel: William C. Johnson, Jr., Esq. THE JOHNSON LAW GROUP, LLC 6305 Ivy Lane Suite 630 Greenbelt, MD 20770 Tel: (301) 477-3450 Fax: (301) 477-4813 E-mail: William@JohnsonLG.Law Total Assets: $4,331,000 Total Liabilities: $2,790,188 The petition was signed by Christopher Powell as managing 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/Q7IQUKQ/218_7th_St_SE_LLC__dcbke-26-00151__0001.0.pdf?mcid=tGE4TAMA 741 INC: Seeks to Extend Plan Exclusivity to May 26 --------------------------------------------------- 741, Inc., d/b/a Wisdom Rides of America asked the U.S. Bankruptcy Court for the District of Colorado to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to May 26 and July 27, 2026, respectively. The Debtor asserts that ample cause exists for this Court to extend the Exclusive Filing Period and Solicitation Period for a period of 60 days, as follows: * The Debtor has been diligently working on catching up its tax filings so that its tax claim can be quantified. The Debtor, however, has run into an issue with respect to the tax filings and needs to find a replacement accountant to assist it with catching up those tax filings. * Additionally, the current deadline for the potential class of unknown unsecured creditors to file claims is April 30, 2026. Extending the deadline will give the Debtor sufficient time to review and evaluate those claims, if any, before filing a plan. 741 Inc. is represented by: Jonathan M. Dickey, Esq. KUTNER BRINEN DICKEY RILEY, P.C. 1660 Lincoln Street, Suite 1720 Denver, CO 80264 Telephone: (303) 832-2400 E-mail: jmd@kutnerlaw.com About 741 Inc. 741 Inc., doing business as Wisdom Rides of America, manufactures and designs amusement rides from its base in Merino, Colorado. The Company produces attractions such as roller coasters, family rides, and thrill rides, and also provides refurbishment, parts, and maintenance services. Its products serve amusement parks, traveling carnivals, and family entertainment centers across the United States and internationally. 741 Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 25-15550) on Aug. 28, 2025. In its petition, the Debtor reports total assets of $1,425,326 and total liabilities of $6,760,662. Bankruptcy Judge Thomas B. McNamara handles the case. The Debtor is represented by Jonathan M. Dickey, at KUTNER BRINEN DICKEY RILEY. ACADIAN ASSET: S&P Alters Outlook to Positive, Affirms 'BB+' ICR ---------------------------------------------------------------- S&P Global Ratings revised the outlook on Acadian Asset Management Inc. to positive from stable and affirmed the 'BB+' long-term issuer credit rating on the company. S&P said, "The positive outlook reflects our expectation for Acadian to maintain healthy net flows and investment performance over the next year despite some anticipated market volatility. We expect the company to remain focused on organic growth and scaling its existing strategies while operating with S&P Global Ratings-adjusted debt to EBITDA well below 1.5x over the next year, supported by substantial AUM growth over the past year. "We expect Acadian to continue to grow AUM, to over $200 billion in 2026. Acadian doubled its AUM over the past two years while diversifying its product offerings." Acadian's operating performance has improved under its simplified business structure, with net flows turning positive in 2024 after four years of negative flows. 2025 followed this trend, with strong performance in Enhanced, Extension, and Emerging Markets Equity strategies marking eight consecutive quarters of positive net flows. As of year-end 2025, AUM reached $177.5 billion, a substantial 51% increase year over year (from $117.3 billion), fueled by $29.4 billion in net client inflows and $30.8 billion from market appreciation. Acadian Asset Management Inc.'s assets under management (AUM) have grown significantly over the past two years, driven by net inflows and market appreciation, and the company has deleveraged following its refinancing in December 2025. In February 2026, Acadian was appointed by St. James Place Global Equities as the new investment adviser to run the SJP Global Lower Carbon Equity fund under an active, systematic approach. Pro forma for this appointment, the company has diversified its product strategies to include 30% Enhanced Equities (up from 4% in 2023), 19% Non-U.S. (down from 24%), 17% Small Cap (down from 21%), 13% Emerging Markets (down from 16%), and 9% other (down from 21%). The Enhanced strategy has a lower fee rate but is highly scalable and has a sticky investor base. S&P said, "We expect Acadian to maintain operating and financial performance, supported by revenue growth and efficient cost management despite potential market volatility. Like other traditional asset managers, Acadian is sensitive to market volatility and subject to redemption. Our U.S. economic outlook for 2026 forecasts 2.2% GDP growth, followed by an average of 1.9% in 2027-2029, but acknowledges risks from geopolitical events and potential oil shocks. Despite this uncertainty, we expect Acadian to grow EBITDA, even with flat to modestly negative market performance, due to strong net inflows over the past year. S&P Global Ratings adjusted revenue increased by 11.5% in 2025 to $564 million while adjusted EBITDA reached $205 million. These increases have trailed AUM improvement due to greater growth in strategies with lower fee rates. However, Acadian is well positioned to scale its existing solutions (such as Enhanced) without material incremental operating expenses or investment, supported by a loyal institutional client base with long-standing relationships, which could boost margins over time. Moreover, while some active equity managers continue to face outflows and challenges from lower-cost passive strategies, Acadian's strong returns have supported solid client retention. "Acadian strengthened its balance sheet, and we expect it to operate with conservative leverage over the next two years. The company proactively refinanced its debt in October 2025, establishing a $175 million revolving credit facility and a $200 million delayed draw term loan (both maturing in October 2028) and fully repaying its $275 million senior notes due 2026. As a result, we expect EBITDA interest coverage to improve substantially in 2026 from around 8x in prior years. "S&P Global Ratings-adjusted leverage declined to 0.8x at year-end 2025, a considerable improvement from 1.4x the prior year, reflecting debt reduction and EBITDA growth. This marked the fifth straight quarter that Acadian operated with debt to EBITDA below our upside trigger (1.5x), demonstrating management's commitment to operating with lower leverage. "The positive outlook reflects our expectation for Acadian to maintain healthy net flows and investment performance in 2026 despite some anticipated market volatility, supported by substantial AUM growth in 2025. We expect the company to remain focused on organic growth and scaling its existing strategies while operating with S&P Global Ratings-adjusted debt to EBITDA below 1.5x over the next year." S&P could revise its outlook back to stable if: -- Operating performance underperforms our expectations, perhaps from a deterioration in investment performance due to volatility in quantitative equity strategies or greater net outflows than we expect; or -- S&P Global Ratings-adjusted debt to EBITDA rises above 1.5x on a sustained basis. S&P could raise its ratings if: -- Acadian's AUM growth and investment performance remain in line with expectations; and -- The company remains committed to its financial policy, such that S&P Global Ratings-adjusted debt to EBITDA is maintained below 1.5x. ACRISURE HOLDINGS: S&P Alters Outlook to Negative, Affirms 'B' ICR ------------------------------------------------------------------ S&P Global Ratings revised its outlook on Acrisure Holdings Inc. to negative from stable and affirmed its 'B' issuer credit and all debt ratings. The negative outlook reflects the possibility of a downgrade if S&P does not expect the company to sustainably reduce leverage to levels consistent with its current rating in the next year. Acrisure Holdings Inc.'s credit metrics have become strained for the rating, given a material compression in S&P adjusted margins and weakened earnings quality. While S&P expects leverage to improve from current highs as the company undertakes various growth and expense-scoping initiatives, there is associated execution risk and it has uncertainty over the pace and degree of deleveraging. Acrisure's performance in late 2025 fell short of expectations, leading to a sharp deterioration in S&P Global Ratings-adjusted credit metrics. S&P said, "Our adjusted leverage rose to 9.6x at the end of 2025 (excluding preferred equity treated as debt; 15.4x including preferred treated as debt) from about 8x at the end of 2024 and as of Sept. 30, 2025. This contrasts with Acrisure's covenant leverage, which remained stable at approximately 6x. The primary driver of this divergence between our and the company's estimate of leverage is a significant increase in add-back exclusions to EBITDA, particularly in the fourth quarter, predominantly related to planned expense-scoping actions in 2026." With only a slight decline in consolidated organic growth (5.1% growth in 2025 or approximately 3.5% excluding syndicate revenue, versus 6.3% in 2024), and limited leverage impact from debt-funded acquisitions during the year (under $750 million in added debt, primarily for Heartland, now known as Auris Payroll), the increase in S&P Global Ratings-adjusted leverage is largely driven by narrower margins. Specifically, S&P-adjusted EBITDA margins declined roughly 600 basis points to 21% in 2025 from 27% in 2024, placing Acrisure's S&P-adjusted margins among the lowest among our rated insurance brokers. S&P continues to view Acrisure as a leading middle market broker with innovative strategies that could enable it to improve its performance and expand market reach, but there are associated headwinds. With revenue of about $5 billion for 2025, Acrisure has grown organically and through acquisitions to become the world's eighth-largest insurance broker (according to Business Insurance rankings). In addition, it has increasingly edged into noninsurance brokerage adjacencies such as real estate, cybersecurity, and payroll services to broaden its product offerings to small business owners beyond insurance services. Other notable growth-oriented strategies include the increased use of tech-enabled lead generation tools (through Auris AI, the company's proprietary AI platform), premium optimization initiatives with carriers and third-party capital placement, and a keen focus on cross-selling across product lines. In addition to its growth initiatives, Acrisure has undertaken significant operational initiatives to integrate platforms and streamline service delivery, largely completing extensive integration within its North American retail business this year. Current efforts focus on international integration and further efficiency gains through workflow automation and digital service centers. Overall, S&P continues to view Acrisure's growth and operational strategies favorably and believe they have the potential to boost its competitive positioning, organic growth, and margin profile over time. Nevertheless, operational disruption related to some of the company's initiatives has dented performance recently, with benefits materializing slower than anticipated. Specifically, the North American retail segment—Acrisure's largest unit and where integration efforts have been focused—experienced client retention declines, contributing to a 1.4% contraction in organic revenue growth in the fourth quarter and only slight growth of 1.4% for the full year (offset by strong performance in Global Markets, the company's second-largest segment). Furthermore, significant restructuring and other costs associated with ongoing optimization and expense-scoping initiatives have caused margins to erode. Management continues to focus on delevering, though achieving it in the near term will require material performance improvement and successful strategic execution. Despite the recent spike in S&P-adjusted leverage (and flat covenant leverage), management has indicated over the last couple of years that one of its top priorities is to reduce leverage. In support of that goal, the company has substantially slowed its pace of acquisitions, and it has become less willing to pay above a certain cash multiple for most assets. While S&P treats the preferred equity from the company's May 2025 capital raise as debt, it believes that the mandatory convertibility of the new and amended instruments to common equity upon a qualified public offering (QPO) also reflects management's intent to ultimately reduce financial leverage. However, absent an equity recapitalization of some form (which is not incorporated into our base-case forecast), deleveraging will depend on improving operating performance. S&P said, "Our base-case forecast anticipates relatively subdued but healthy organic revenue growth and incremental margin improvement, as savings from expense-scoping initiatives materialize, leading to sequential improvements in our credit ratios. However, recent performance shortfalls and the scale of ongoing operational transformation increase execution risk and contribute to our limited conviction around the pace and degree of performance and leverage improvement." The negative outlook reflects that Acrisure's credit metrics are strained for the rating on earnings shortfalls and our uncertainty over the extent of deleveraging over the next year. S&P could lower its ratings in the next 12 months if operating trends are such that it does not expect the company's leverage to be near 8x (excluding preferred equity treated as debt; nearing 14x including preferred equity) with S&P-adjusted EBITDA coverage (excluding preferred dividend accrual) of about 2x on a sustained basis. This could occur from a combination of cost overruns and delayed realization of expense-scoping initiatives, combined with limited organic growth or unanticipated large debt-funded acquisitions. S&P said, "Given the elevated leverage, we think an upgrade is highly unlikely in the next 12 months. However, we could revise our outlook to stable if we believe Acrisure can improve its credit measures over the next year, including leverage nearing 8x (excluding preferred; nearing 14x including preferred equity) and S&P-adjusted EBITDA coverage approaching 2x (excluding preferred dividend accrual) or above." ADVANCED INTEGRATION: Moody's Ups CFR to 'B3', Outlook Stable ------------------------------------------------------------- Moody's Ratings upgraded its ratings for Advanced Integration Technology LP (AIT), including the corporate family rating to B3 from Caa1 and the probability of default rating to B3-PD from Caa1-PD. Moody's also upgraded AIT's senior secured bank credit facilities to B3 from Caa1. In conjunction with the ratings upgrade, Moody's changed the outlook to stable from positive. The upgrades reflect substantially improved credit metrics due to strong performance during 2024-2025. Also reflected in this action is Moody's observation of improved management credibility and track record, as evidenced by AIT's ability to generally meet its budget over this timeframe. Adjusted debt-to-EBITDA has declined to approximately 4.7 times as of December 31, 2025 due to strong earnings growth. Free cash flow generation has been consistently positive over the past couple of years as the company has been executing on its backlog. Moody's projects leverage to remain unchanged in 2026, absent any material acquisitions and considering the remarkable progress on margin improvement through 2025 that Moody's believes is largely complete. Although the past two years have been quite strong, AIT's concentrated customer base can give rise to volatility in operating performance which remains a ratings constraint. The company remains prone to significant earnings volatility and is vulnerable to potential delays by one or more of its customers. The stable outlook reflects Moody's expectations that AIT will continue executing across its various platforms while maintaining a substantial backlog. RATINGS RATIONALE The B3 CFR reflects AIT's small scale, concentrated customer and platform base, and exposure to cyclical end markets. The rating also incorporates AIT's reliance on large customer contracts that are vulnerable to cost revisions and delays. Unanticipated customer delays can be deeply disruptive to AIT's operational and financial performance. Also reflected in the rating is the company's moderately high financial leverage and uncertainty relating to the company's ability to convert pipeline opportunities into its backlog. Despite the possible headwinds presented by the aforementioned risks, AIT's performance has been strong for two consecutive years as the company has moved past Covid-related delays, shifted to higher-margin automation projects, and benefitted from the removal of some fixed costs. Moreover, the short-term outlook looks particularly good due to AIT's promising pipeline in which the company is well-positioned to benefit from its incumbent position and long-lasting relationships with customers. Moody's expects AIT to maintain adequate liquidity over the next 12 months. AIT's cash balance on December 31, 2025 was $54 million. The company's term loan B matures in May 2027 and Moody's expects the company to extend the maturity. The term loan B has modest annual amortization of approximately $2.8 million. Moody's anticipates consistently positive free cash flow during 2026. External liquidity is provided by an undrawn $45 million revolving credit facility. Given the improved track record of management, Moody's have changed the Management and Credibility score from a "5" to a "3". This has resulted in us boosting AIT's governance IPS to a G-4 from a G-5 and its credit impact score to a CIS-4 from a CIS-5. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded if free cash flow-to-debt is sustained in the mid-to-high single-digit range, adjusted debt-to-EBITDA is sustained below 4.5x, and there is a sustained increase in scale driven by enhanced customer diversity. The ratings could be downgraded if there is sustained negative free cash flow, adjusted debt-to-EBITDA is sustained above 6.0x, or liquidity erodes. Advanced Integration Technology LP (AIT), headquartered in Plano, Texas, is a provider of turnkey factory automation and complex automated and non-automated tooling to the commercial aerospace and defense industries. AIT's primary business is to design, engineer, manufacture, and install machines and systems which enable the automated assembly of aerospace structures and other industrial equipment. The company is owned by management, funds affiliated with Onex Corporation and by Qatar Investment Authority. The principal methodology used in these ratings was Aerospace and Defense published in July 2025. The assigned corporate family rating of B3 is two notches below the scorecard-indicated outcome of B1. The B3 corporate family rating reflects the company's small scale, history of variable performance, and dependence on a contract based backlog. AMC ENTERTAINMENT: Registers 15.4MM Shares for Selling Stockholders ------------------------------------------------------------------- AMC Entertainment Holdings, Inc. filed a prospectus supplement to its effective shelf registration statement on Form S-3 (File No. 333-293291) registering the resale by the selling stockholders -- Pentwater Capital Management LP and Discovery Capital Management, LLC -- of up to 15,378,194 shares of Class A common stock, $0.01 par value per share, under the Securities Act. The Company will not receive any proceeds from the sale of the Shares. As previously disclosed, the Shares were issued to the Selling Stockholders on March 23, 2026 as consent fees for certain amendments to the indentures governing Muvico, LLC's 6.00%/8.00% Cash/PIK Toggle Senior Secured Exchangeable Notes due 2030 and Senior Secured Exchangeable Notes due 2030, as applicable. A full text copy of the prospectus supplement is available at https://tinyurl.com/869s3fdd, and a copy of the opinion regarding the validity of the Shares is available at https://tinyurl.com/77puarnp About AMC Entertainment AMC Entertainment Holdings, Inc., is engaged in the theatrical exhibition business. It operates through theatrical exhibition operations segment. It licenses first-run motion pictures from distributors owned by film production companies and from independent distributors. The Company also offers a range of food and beverage items, which include popcorn; soft drinks; candy; hotdogs; specialty drinks, including beers, wine and mixed drinks, and made to order hot foods, including menu choices, such as curly fries, chicken tenders and mozzarella sticks. As of December 31, 2025, the Company had $8,017.8 million in total assets, $9,912.6 in total liabilities, and $1,894.8 in total stockholders' deficit. * * * In October 2025, Moody's Ratings assigned Caa2 ratings to AMC Entertainment Holdings, Inc.'s new Senior Secured First-Lien Notes due 2029 (1.5 Notes). Moody's downgraded Muvico, LLC's (Muvico) Backed Senior Secured Second-lien Notes (Existing Exchangeable Notes) rating to Caa3 from Caa2. Moody's affirmed AMC's Caa2 Corporate Family Rating and Caa2-PD Probability of Default Rating, and all other instrument ratings including the B3 on the Senior Secured First-Lien Term Loan at AMC (AMC TL) which is co-borrower with Muvico, the B3 on the Backed Senior Secured First-Lien Notes rating at Odeon Finco PLC (Odeon) (Odeon Notes), the Caa3 rating on the Senior Secured First-Lien Notes (7.5% Notes) at AMC, and the Ca rating on the Senior Subordinated Notes (Sub Notes) of AMC. AMC's Speculative Grade Liquidity Rating (SGL) remains unchanged at SGL-4. The outlook for all Companys remains stable. In July, the Company announced [1] that it entered into a Transaction Support Agreement with key creditor groups, including certain holders of its 7.5% Notes, certain holders of Muvico Existing Exchangeable Notes, and certain lenders representing AMC's TL outstanding under its existing credit agreement. In connection with the agreement, (1) Muvico issued new $194 million (now with $154 million outstanding) 6.00%/8.00% Senior Secured Second-Lien Exchangeable Notes due 2030 (New Exchangeable Notes, unrated) which have a 1.25 lien claim on Muvico assets, effectively a second lien, and (2) AMC issued the 1.5 Notes comprised of approximately $267.0 million of incremental new money financing and an exchange of $590.0 million of 7.5% Notes for a total of approximately $857 million. These lenders have a 1.5 lien on Muvico assets, effectively third claim priority behind the New Exchangeable Notes at Muvico. As a result of the transaction, the 7.5% Notes (with a pro forma debt principal amount totaling approximately $360 million), which did not participate in the exchange for the 1.5 Notes, retained existing terms and conditions (e.g. notably, no lien on Muvico assets) and therefore have lower recovery prospects relative to the New Exchangeable Notes (which have a 1.25 lien on Muvico). In addition, Moody's rank the Existing Exchangeable Notes (with approximately $108 million outstanding) that did not participate in the exchange behind the New Exchangeable Notes and the 1.5 Notes due to a change in the definition of permitted liens to allow superior liens. Moody's expects the New Exchangeable Notes to be fully extinguished in the near term (in a stock exchange) when certain conditions are met (e.g. company stock price reaches a pre-determined level and noteholders elect to exchange). AMI ATHLETICS: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: AMI Athletics SPE Inc. 20 West 47 Street, Suite 205 New York, NY 10036 Chapter 11 Petition Date: March 31, 2026 Court: United States Bankruptcy Court Southern District of New York Case No.: 26-10710 Judge: Hon. Michael E Wiles Debtor's Counsel: Leo Jacobs, Esq. JACOBS P.C. 717 5th Avenue, fl 17 New York, NY 10022 Tel: (212) 229-0476 E-mail: leo@jacobspc.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Ilan Elishayev as president. The Debtor failed to attach a list of its 20 largest unsecured creditors to the petition. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/A36ORSY/AMI_Athletics_SPE_Inc__nysbke-26-10710__0001.0.pdf?mcid=tGE4TAMA ASCENT RESOURCES: Fitch Hikes LongTerm IDR to 'BB', Outlook Stable ------------------------------------------------------------------ Fitch Ratings has upgraded Ascent Resources Utica Holdings, LLC's (Ascent) Long-Term Issuer Default Rating (IDR) to 'BB' from 'BB-'. Fitch also upgraded the secured RCF to 'BBB-' with a Recovery Rating of 'RR1' from 'BB+'/'RR1', and upgraded the unsecured notes to 'BB'/'RR4' from 'BB-'/'RR4'. The Rating Outlook is Stable. The upgrade reflects continued strong performance and the use of positive FCF to repay the revolver. The rating incorporates expectations for sustained positive FCF, lower leverage, above-average production scale, and a strong hedge book. These strengths are partly offset by high firm transportation costs, which constrain netbacks relative to peers. Fitch expects Ascent to generate FCF and retain access to the debt capital markets, although natural gas prices remain volatile and market access can be weak at times. The Stable Outlook reflects Fitch's expectation that leverage will remain low and revolver balances will continue to decline throughout the forecast period. Key Rating Drivers Consistent FCF Generation: Fitch views Ascent's consistent positive FCF as credit positive. The company generated about $285 million of FCF in 2025 (Fitch-calculated, including shareholder distributions) and used most of it for debt repayment. Fitch expects production to remain at 2.0-2.2 billions of cubic feet equivalent per day (bcfe/d), supporting positive FCF at Fitch base-case prices. Additional upside could come from lower firm transportation costs and continued drilling and completion efficiencies. Fitch expects FCF to be used for debt repayment and shareholder distributions. Scale and Operating Profile: Fitch views Ascent's reserve base and production scale as credit positives. Both align with the 'bbb' category in Fitch's credit rating tool. The ability to maintain production while maintaining spending below cash flow from operations (CFO) further supports credit quality. Netbacks Curtailed: Ascent's realized pricing is strong versus peers, but high firm transportation costs constrain netbacks. Fitch views the risk of production mismatches as low because volumetric commitments are well below production. Contracts roll off through 2032, limiting near-term savings potential. Excluding transportation, operating costs are low relative to peers. Protective Hedging Program: Ascent's hedging program supports cash flow stability. For 2026, the company has hedged about 74% of expected oil production at $64.67/barrel (bbl) and greater than 80% of expected natural gas production at about $3.76/thousand cubic feet (mcf). Gas hedges extend to 2028, with greater than 60% hedged in 2027 at $3.79/mcf and around 10% hedged in 2028 at $3.77/mcf. Fitch believes hedging supports capital spending and debt reduction plans. Conservative Capital Structure: Ascent's capital structure and capital allocation are supportive of credit quality. The company targets total debt below $2 billion and balances debt repayment with shareholder distributions. Fitch forecasts positive FCF and revolver repayment, allowing Ascent to reach its debt target in 2026. Leverage remains below 2x throughout the forecast. Peer Analysis Ascent's Fitch-calculated EBITDA leverage was 1.2x as of Dec. 31, 2025, broadly in line with peers. Ascent's 2025 production averaged 2,149 thousand cubic feet of natural gas equivalent per day (mmcfe/d), above Gulfport Energy Corp. (B+/Stable; 1,039 mmcfe/d) and CNX Resources Corp. (BB+/Stable; 1,723 mmcfe/d), but below Antero Resources Corp. (BBB-/Stable; 3,441 mmcfe/d). Fitch-calculated unhedged, levered netbacks were $1.63/ thousand cubic feet equivalent (mcfe) in 2025, below most gas-weighted peers (including Gulfport and TG Natural Resources) but above Antero. Strong realized pricing and low operating costs are partly offset by higher firm transportation costs. Fitch’s Key Rating-Case Assumptions - Henry Hub natural gas price of $3.50/mcf in 2026, $3.25 /mcf in 2027, $3/mcf in 2028 and $2.75/mcf thereafter; - West Texas Intermediate oil price of $65/bbl in 2026, $58/bbl in 2027 and $57/bbl thereafter; - Production is flat; - Capex of $800 million to $875 million over the forecast horizon; - FCF used for debt reduction and shareholder distributions. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bbb, Lower), Sector Characteristics (bbb, Moderate), Market and Competitive Positioning (bbb-, Moderate), Diversification and Asset Quality (bb, Higher), Company Operational Characteristics (bbb-, Moderate), Profitability (bb, Higher), Financial Structure (a+, Lower), and Financial Flexibility (bbb, Lower). - The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2025, 10% for the forecast year 2026, 10% for the forecast year 2027, 15% for the forecast year 2028 and 55% for the forecast year 2029. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'aa-' results in no adjustment. - The SCP is 'bb'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Weakening of commitment to stated financial policy, including the hedging program; - Sustained weaker FCF generation; - Mid-cycle EBITDA leverage sustained above 2.0x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increased midcycle EBITDA and FCF generation; - Improvement in netbacks relative to peers; - Mid-cycle EBITDA leverage sustained below 1.5x. Issuer Profile Ascent is one of the largest producers of natural gas in the U.S. in terms of daily production. It explores, develops, produces and operates natural gas and oil properties in the Utica Shale in the Appalachian Basin. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals Ascent Resources Utica Holdings, LLC's Climate.VS for 2035 is 51, in line with peers. The elevated score reflects potential policy-driven pressure to reduce emissions and accelerate the shift from fossil fuels. Fitch does not view this risk as affecting the rating at present, as it expects the energy transition to play out over several decades. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Ascent Resources Utica Holdings, LLC LT IDR BB Upgrade BB- senior secured LT BBB- Upgrade RR1 BB+ senior unsecured LT BB Upgrade RR4 BB- AVALARA INC: Fitch Affirms 'B' LongTerm IDR, Outlook Positive ------------------------------------------------------------- Fitch Ratings has affirmed of Lava Intermediate, Inc.'s and Avalara, Inc.'s (together Avalara) Long-Term Issuer Default Ratings (IDRs) at 'B'. The Rating Outlook is Positive. Fitch has also affirmed Avalara's first lien senior secured revolver and term loan ratings at 'BB-' with a Recovery Rating of 'RR2'. Avalara's IDR of 'B' reflects its position as a leading provider of cloud-based tax compliance solutions and its diverse, expanding customer base. The Positive Outlook reflects Fitch's expectation of improving credit metrics, supported by continued double-digit revenue growth and margin expansion opportunities. Fitch expects deleveraging over the next 12-24 months mainly through EBITDA growth, with strong FCF conversion supporting financial flexibility. Key Rating Drivers Improving Credit Metrics: Avalara's credit metrics have been strained since its 2022 take-private transaction, but Fitch expects substantial improvement over the subsequent years. Fitch forecasts strengthening in fiscal 2025-fiscal 2026, driven by EBITDA growth and improved cash generation. Fitch expects gross leverage to be about 7.1x in fiscal 2025 and decline to below 6.0x in fiscal 2026. (CFO-capex)/debt is forecast to increase to about 4% in fiscal 2025 and about 9% in fiscal 2026. EBITDA interest coverage is projected to improve to about 1.5x in fiscal 2025 and to approach 2.9x in fiscal 2026. Industry Tailwinds Support Growth: Avalara is positioned for solid growth, supported by favorable tailwinds in U.S. tax compliance software. The market TAM is estimated to be about $15 billion, with over half in small and medium-sized businesses (SMBs), where penetration is lower than in large enterprises and aligns with Avalara's focus. Fitch expects SMB tax compliance to grow at a low- to mid-teens CAGR over the next five years, driven by evolving U.S. sales and use tax rules and rising e-commerce complexity that increases tax exposure. Avalara also has opportunities to expand outside the U.S. Strong Revenue Visibility: Avalara is a global leader in the rapidly growing market for transactional tax compliance and e-invoicing. The company has a resilient business model that has historically performed well in both favorable and challenging economic conditions. As of fiscal 2024, Avalara's recurring revenue rate was 95%, up from 91% in fiscal 2021, with a net retention rate of 109% and a gross retention rate of 89%. This highly recurring and predictable revenue model, coupled with significant whitespace for growth, underscores Avalara's strong revenue visibility and expansion potential. Limited AI Disruption Risk: Fitch views Avalara's medium-term AI disruption risk as low, as its core offering relies on curated, frequently updated tax content, auditability/controls and deep enterprise resource planning (ERP), e-commerce and billing integrations that are hard to replicate with general-purpose AI. AI should mainly enhance Avalara's platform by improving automation and speeding implementations (e.g., exception handling, document ingestion and customer support), reducing cost to serve and supporting margin expansion. Avalara's competitive position should remain driven by accuracy, regulatory coverage and embedded workflows, not AI features alone. Leading Competitive Position: Avalara is among the leading providers of tax compliance automation software. Its scale, broad tax content and deep integrations across ERP, e-commerce, and billing platforms compare favorably with many smaller point-solution competitors. Avalara serves over 43,000 direct customers globally and more than 200,000 direct and indirect customers in total. Customer concentration is low, with no single customer representing more than 10% of revenue as of Dec. 31, 2024. Differentiation, Margin Expansion: Avalara's integration with ERP and accounting platforms supports retention and helps customers manage complex tax compliance. Its large, frequently updated tax content supports accurate calculations across many jurisdictions. Margins have improved due to cost control, including lower marketing spend and increased use of low-cost locations. Growth is supported by Avalara's strategy to upsell and cross-sell to existing customers and expand its product portfolio. Avalara is moving further into larger enterprise and international customers, which could improve revenue stability. Execution and competition will be key to sustaining margin gains. Peer Analysis Fitch assesses Avalara's performance as aligning with industry peers, with credit metrics comparable to other 'B' category entities. Software industry peer, Project Everest Ultimate Parent, LLC (Conga, B+/Stable), has stronger leverage metrics than Avalara, although Fitch expects it to generate slower revenue growth and softer margins. Another 'B+' peer, UKG Inc. (B+/Stable), has demonstrated strong market penetration and profitability, offering broader market reach compared to Avalara. RealPage Intermediate Holdings, Inc. (B/Stable) shares Avalara's focus on niche markets and demonstrates competitive operational efficiency. However, Fitch expects Avalara to generate stronger FCF growth than RealPage. Similar to Avalara, KnowBe4, Inc. (B/Stable) exhibits similar credit metrics to Avalara, with high leverage offset by an improving margin and FCF generation profile. In contrast, Motus Group, LLC (B-/Positive) and Tungsten CayCo, Ltd. (B-/Negative) have weaker credit profiles compared to Avalara, due to higher operating costs and interest burdens, and in Tungsten's case, weaker liquidity. Fitch’s Key Rating-Case Assumptions - Total revenue growing low- to mid-teens through the forecast period via organic growth and acquisitions; - Operating expenses declining modestly as percentages to total revenues as the company scales and realizes cost savings initiatives; - $150 million per year spent on tuck-in acquisitions starting fiscal 2026, funded by FCF; - No debt repayments assumed beyond the mandatory 1% amortization. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bbb-, Lower), Sector Characteristics (bbb, Lower), Market and Competitive Positioning (bbb+, Moderate), Diversification and Asset Quality (bb+, Moderate), Company Operational Characteristics (bbb, Moderate), Profitability (bbb, Moderate), Financial Structure (b, Higher), and Financial Flexibility (b+, Higher). - The quantitative financial subfactors are based on custom CRT financial period parameters: 45% weight for the forecast year 2025, 45% for the forecast year 2026 and 10% for the forecast year 2027. - B+ to CC considerations apply in its analysis and result in an adjustment of -1 notch(es). - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'aa-' results in no adjustment. - The SCP is 'b'. Recovery Analysis Key Recovery Rating Assumptions - The recovery analysis assumes that the issuer would be reorganized as a going concern in bankruptcy rather than liquidated. - A 10% administrative claim is assumed. - The revolver is assumed to be fully drawn. Going-Concern (GC) Approach GC EBITDA: Industry tailwinds are supporting Avalara's growth. Fitch assumes a bankruptcy scenario where the company experiences a higher customer churn and decreasing revenue. Avalara could lose its top customers and downsell to other existing customers, leading to a 10% to 15% decrease from the projected FY 2026 revenue. Additional cost reductions during the reorganization process, could lead to a GC EBITDA margin in the low-to-mid 20% range. $325 million is used as the GC EBITDA. The EV/EBITDA multiple used in this recovery analysis for Avalara, Inc. is 7.0x. Fitch believes that the multiple is supported by the following. - Comparable Reorganizations: In its 2025 "Telecom, Media and Technology Bankruptcy Enterprise Values and Creditor Recoveries" case study, Fitch notes the median TMT multiple of reorganization EV/EBITDA is around 5.9x. Of these companies, five were in the Software subsector: SunGard Availability Services Capital, Inc., Aspect Software, Inc., Allen Systems Group, Inc., Avaya, Inc. and Riverbed Technology Software, which received recovery multiples of 4.6x, 5.5x, 8.4x, 7.5x and 8.3x, respectively. - Comparable Recovery Assumptions: The multiple has been between 5.5x and 7.0x for 'B'/'CCC' rated software as a service peers with similar products or services and operating profiles as providers of specialty software to client bases where market shares are defensible. - Business Profile: The issuer has a market leader position with high retention rates historically (over 90% gross and over 100% net). The company also has highly recurring revenue model providing significant revenue visibility. All these business profile factors support a high EV multiple. The GC EBITDA of $325 million and a recovery multiple of 7.0x result in a post-reorganization enterprise value of approximately $2 billion after the deduction of administrative claims, resulting in an 'RR2' Recovery Rating for the 1L senior secured revolver and term loan, two notches above the issuer's IDR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA interest coverage below 1.5x on a sustained basis; - EBITDA leverage sustained above 7.5x; - (CFO-capex)/debt sustained below 3%; - EBITDA leverage sustained above 5.5x would result in a stabilization of the ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage sustained below 5.5x; - (CFO-Capex) to Debt sustained above 7%. Liquidity and Debt Structure Fitch expects Avalara to maintain sufficient liquidity, with approximately $333 million in unrestricted cash and equivalents as of September 2025, and an undrawn $300 million revolver. Fitch expects FCF to turn sharply positive in fiscal 2025, aided by continued revenue growth, margin expansion, and lower interest burden. The company has no near-term maturities with the revolver maturing in 2030 and the secured first lien term loan maturing in 2032. Issuer Profile Avalara provides software solutions that help businesses meet transaction tax and compliance requirements. It offers solutions for various taxes including sales and use, value-added, energy, beverage alcohol, cross-border (such as tariffs and duties), lodging, property, communications, and insurance premiums. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Lava Intermediate, Inc.. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Lava Intermediate, Inc. LT IDR B Affirmed B Avalara, Inc. LT IDR B Affirmed B senior secured LT BB- Affirmed RR2 BB- B-YOU ACADEMY: Seeks to Hire Xavier Flores Ríos as Accountant -------------------------------------------------------------- B-You Academy, LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Xavier Flores Ríos as its accountant. The firm will provide the Debtor with reorganization advisory services, prepare necessary operating and disclosure reports, and conduct analyses to assist with confirming a reorganization plan. The accountant will be paid $75 per hour for his services. Xavier Flores Ríos has received a retainer in the amount of $1,500. AS disclosed in the court filings, Xavier Flores Ríos is a "disinterested person", as said term is defined in 11 U.S.C. Sec. 101(14). The accountant can be reached at: Xavier Flores Ríos Urb Villa Ana A42 Simplicio Cordero Street Juncos, PR 00777 Tel: (787) 237-0797 Email: tloresaccounting@gmail.com About B-You Academy LLC B-You Academy, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 26-00512) on February 10, 2026, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Mildred Caban Flores oversees the case. Teresa M. Lube Capo, Esq., and Madeline Soto Pacheco, Esq., at Lube & Soto Law Offices, PSC serve as the Debtor's counsel. BETHUNE SUITES: Case Summary & Five Unsecured Creditors ------------------------------------------------------- Bethune Suites, LLC 156 Maple Avenue Unit 212 Spring Valley, NY 10977 Business Description: Bethune Suites, LLC is a real estate firm that owns and manages a single property, offering leasing services to tenants. Chapter 11 Petition Date: March 31, 2026 Court: United States Bankruptcy Court Southern District of New York Case No.: 26-22323 Debtor's Counsel: Joel M. Shafferman, Esq. SHAFFERMAN & FELDMAN LLP 137 Fifth Avenue 9th Floor New York, NY 10010 Tel: (212) 509-1802 Email: shaffermanjoel@gmail.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Mark Taub as chief restructuring officer. 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/KHA4QIQ/Bethune_Suites_LLC__nysbke-26-22323__0001.0.pdf?mcid=tGE4TAMA BLUE GALLERIA: Plan Exclusivity Period Extended to June 8 --------------------------------------------------------- Judge Scott M. Grossman of the U.S. Bankruptcy Court for the Southern District of Florida extended Blue Galleria LLC's exclusive periods to file a plan of reorganization and obtain acceptance thereof to June 8 and August 7, 2026, respectively. In a court filing, the Debtor explains that although this case is not particularly large, the seasonal nature of the company's business provides some complexity and timing issues. Moreover, the Debtor is engaged in discussions with its landlord regarding alternatives relating to the lease. The Debtor states that this case is less than four months old. Due to the seasonal nature of the Debtor's business and issues related to timing, as well as ongoing discussions with the Debtor's landlord, more time is necessary to evaluate operations and alternatives, including, without limitation, the formulation of a plan of reorganization, as well as time in which to seek and obtain confirmation. The Debtor asserts that it is not seeking to use exclusivity to pressure creditors into accepting a plan they find unacceptable or as a delay tactic. Rather, the Debtor legitimately requires additional time to formulate and file a plan of reorganization, as well as to seek and obtain confirmation. Blue Galleria LLC is represented by: Michael D. Seese, Esq. Seese, PA 101 N.E. 3rd Avenue, Suite 1500 Ft. Lauderdale, FL 33301 Telephone: (954) 745-5897 Email: mseese@seeselaw.com About Blue Galleria LLC Blue Galleria, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-23318) on Nov. 10, 2025. In its petition, the Debtor reported between $100,001 and $1 million in assets and liabilities. Judge Scott M. Grossman oversees the case. The Debtor is represented by Michael D. Seese, Esq. BOISE CASCADE: Moody's Alters Outlook on 'Ba1' CFR to Stable ------------------------------------------------------------ Moody's Ratings affirmed Boise Cascade Company's ("Boise Cascade") Ba1 Corporate Family Rating, Ba1-PD Probability of Default Rating, and Ba2 rating on its senior unsecured debt. Outlook is revised to stable from positive. The SGL-1 speculative grade liquidity rating remains unchanged. RATINGS RATIONALE Boise Cascade's rating reflects its conservative balance sheet and financial policies that are expected to keep credit metrics strong despite ongoing weakness in the housing markets and uncertain economic conditions. The rating also reflects its strong market position in engineered wood product (EWP) manufacturing and improving earnings profile with increased EWP capacity. Additionally, the rating considers Boise Cascade's expansive geographic footprint and growth in non-commodity building products within its distribution segment. The rating is constrained by the company's concentrated exposure in the cyclical US residential construction and repair/remodeling end markets and the highly competitive nature of the building products industry with other available substitute products. The rating also considers the commodity pricing and earnings volatility inherent in the wood products business as well as the relatively low operating margin profile of its distribution business. 2025 was a challenging year for the US housing and building products industry, particularly on the single-family side, as elevated interest rates and ongoing affordability pressures continued to constrain demand. Boise Cascade experienced slower demand, lower pricing, and meaningfully weaker margins across both its wood products and distribution segments. Despite the soft operating performance in 2025, Boise Cascade maintains credit metrics that are strong for its Ba1 rating, supported by a conservative financial policy and solid balance sheet. The company ended 2025 with Moody's adjusted leverage of approximately 1.4x, up from 0.8x in 2024 but still providing meaningful cushion relative to rating sensitivities. Liquidity remains ample, even after shareholder returns in the form of dividends (approximately $35 million) and share repurchases (approximately $183 million) completed in 2025. While free cash flow generation was limited in 2025 due to lower earnings, temporarily elevated capex, and working capital usage, Moody's expects the company to generate annual free cash flow in the $80 million range over the next 12 to 18 months as capex and working capital normalize. Moody's anticipates that Boise Cascade will maintain Moody's adjusted leverage below 1.5x over this period, consistent with its historically conservative balance sheet management and supportive of the current rating. The stable outlook reflects expectations that Boise Cascade will maintain strong credit metrics despite the ongoing housing market weakness. Boise Cascade has very good liquidity (SGL-1) with over $850 million of liquidity sources and no near-term mandatory debt repayments. The company had $477 million of cash on hand as of December 2025. The company has a $450 million revolving credit facility, due April 2030, with $50 million outstanding and $395 million in availability (net letters of credit) as of December 2025. The revolving credit facility has a 3.5x net leverage covenant. Moody's expects the company to remain in compliance with its financial covenant over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's would consider an upgrade to the rating if the company maintains strong liquidity and conservative financial policies, significantly improves its margin profile, maintains Moody's-adjusted leverage below 3x and RCF/Net Debt above 35%. An upgrade would also require an all-unsecured capital structure. Moody's would consider a downgrade to the rating if there is material reduction in liquidity, significant changes to its financial policy, Moody's-adjusted leverage sustains above 4x or RCF/Net Debt sustains below 25%. Boise Cascade is a vertically-integrated building products company headquartered in Boise, Idaho. Boise Cascade is one of the largest wholesale distributors of a broad line of building materials, including internally produced EWP and commodity (plywood) products, as well as externally sourced commodity (e.g., OSB, lumber) and general line products (e.g., doors, siding, decking). The company also manufactures engineered wood products (EWP) and plywood (collectively through its wood products segment). Boise Cascade generated sales of $6.4 billion for the twelve months ended December 2025. The principal methodology used in these ratings was Paper and Forest Products published in November 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. BRIGHT MOUNTAIN: Posts $13.5MM Loss in FY25, Flags Liquidity Crunch ------------------------------------------------------------------- Bright Mountain Media, Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The audited report contains a blunt warning: "matters create a substantial doubt regarding the Company's ability to meet its financial needs and continue as a going concern." Historically, the Company has incurred losses, which has resulted in an accumulated deficit of approximately $180.3 million as of December 31, 2025. Net loss from operations for the year ended December 31, 2025 was $13.5 million as compared to a net loss of $17 million for the year ended December 31, 2024. Cash flows provided by operating activities were $1.3 million and $1.9 million for the years ended December 31, 2025, and 2024, respectively. As of December 31, 2025, the Company had a working capital deficit of approximately $95.5 million, inclusive of $1.4 million in cash and cash equivalents and $1.9 million in restricted cash. New York, New York-based WithumSmith+Brown, PC, the Company's auditor since 2021, issued a "going concern" qualification in its report dated March 24, 2026, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to meet its liquidity needs through a combination of factors. During the next year, the Company anticipates that it will need approximately $86.3 million to meet contractual obligations in addition to amounts needed for its working capital needs. The Company is currently exploring several strategic alternatives, including restructuring or refinancing its debt, or seeking additional debt, including borrowing under the Centre Lane Senior Secured Credit Agreement or raising equity capital. Any refinancing or additional financing may require the consent of Centre Lane under the terms of the Centre Lane Senior Secured Credit Agreement, and there can be no assurance that such consent would be obtained. The ability to access the capital markets is also dependent upon the volume and market price of the Company's stock, which cannot be assured. Other measures include reducing or delaying certain business activities, or reducing general and administrative expenses, including a reduction in headcount. If the Company is unable to successfully implement one or more of these alternatives, it may be required to seek protection under applicable bankruptcy or insolvency laws. The ultimate success of these plans is not guaranteed and if the Company is unable to refinance or restructure the Centre Lane Senior Secured Credit facility, it may not be able to continue as a going concern. The Company's current cash and working capital, as of March 24, 2026, the filing of the Annual Report on Form 10-K, is not expected to be sufficient to fund its anticipated level of operations over the next 12 months. As a result, such matters create a substantial doubt regarding the Company's ability to meet its financial needs and continue as a going concern. A full text copy of the Company's Annual Report is available at https://tinyurl.com/3h7c3tkn About Bright Mountain Bright Mountain Media, Inc. (together with its wholly-owned subsidiaries) is an end-to-end marketing services company that helps brands with the right audiences, at the right time, with the right message, both effectively and efficiently by removing the middlemen in the marketing workflow. The Company's end-to-end offerings combine consumer insights with creative services, media services, and advertising technology to deliver solutions to improve audience fidelity for brands. The Company focuses on digital publishing, advertising technology, consumer insights, creative services, and media services. As of December 31, 2025, the Company had $39.7 million in total assets, $116.3 million in total liabilities, and $76.6 million in total stockholders' deficit. BURFORD CAPITAL: S&P Downgrades ICR to 'BB-', Outlook Stable ------------------------------------------------------------ S&P Global Ratings lowered its issuer credit and issue ratings on Burford Capital Ltd. (Burford) and on its senior unsecured notes to 'BB-' from 'BB'. The outlook is stable. At the same time, S&P lowered its issuer credit ratings on Burford's subsidiaries, Burford Capital Global Finance LLC and Burford Capital LLC, to 'BB-' from 'BB'. S&P continues to view these entities as core subsidiaries of Burford. On March 27, 2026, the U.S. Court of Appeals for the Second Circuit reversed the District Court's prior judgment in the long‑running expropriation case involving Argentina's 2012 nationalization of YPF S.A. As a result, litigation finance company Burford Capital Ltd., which financed partly this case, expects to record a significant noncash write-down to its carrying value of the YPF asset in the first quarter of 2026 (consisting mostly of unrealized gains). This will reduce the company's adjusted tangible equity and push pro forma leverage to well above 1.5x in the coming quarters. S&P also expects the write-down to result in leverage above the level permitted in the incurrence covenants on some of Burford's senior unsecured notes, which will limit its ability to raise incremental debt to fund future growth opportunities. S&P expects Burford's S&P Global Ratings-adjusted debt to adjusted total equity (ATE) to rise meaningfully following an impairment related to its YPF litigation. The YPF matter—arising from Argentina's 2012 nationalization of YPF—has been one of Burford's largest and most visible exposures. Since 2015–2016, Burford has financed partly claims brought by Petersen and Eton Park against Argentina, culminating in a $16.1 billion award to plaintiffs by the U.S. District Court in 2023. On March 27, 2026, the U.S. Court of Appeals for the Second Circuit reversed the District Court's judgement. This appellate decision is expected to trigger a substantial write-down of Burford's YPF exposure. While S&P expects the plaintiffs to pursue various available options as next steps, including seeking rehearing in the U.S. and arbitration, this will likely be a multiyear process. As of Dec. 31, 2025, the company's capital provision assets included $1.57 billion in unrealized gains and $117.6 million in deployed costs toward YPF (on a Burford-only basis). S&P said, "We estimate a full impairment of the unrealized gains (net of an offsetting reversal in accrued long-term incentive compensation payable associated with the YPF case; assumed to have been accrued at about 8%) will result in leverage in the 2.5x-3.0x range (pro forma as of Dec. 31, 2025), meaningfully above 0.95x as of Dec. 31, 2025. Leverage could be somewhat lower if impairment assumptions are less punitive than this, but we expect it will still be above 1.5x (our prior downside threshold)." However, Burford has historically operated without reliance on cash generation from any single case—including YPF—given the inherent uncertainty and long-dated nature of such matters. S&P notes that the expected write-down is entirely noncash in nature, total cost deployed in this case (over a multiyear period) is very low, and the company has recovered about twice its deployed capital through prior secondary sales. S&P said, "We expect the impairment to result in leverage above the level permitted under Burford's incurrence covenants, limiting its ability to raise additional debt. Some of the company's senior unsecured notes have leverage-based incurrence covenants that restrict additional debt issuance if Burford's debt-to-adjusted-equity ratio exceeds 2.0x (and restricts certain payments or investments, if leverage exceeds 1.5x or 1.75x). We expect the impairment to result in leverage of more than 2x, limiting the company's ability to raise additional debt. On the other hand, we note that these are incurrence covenants, not maintenance covenants, and won't trigger any accelerated payments or prevent the company from refinancing its existing debt maturities. "Over the past few years, the company has focused intensely on growth and has recently outlined its aspirations to double its portfolio base by 2030. Given the limitations on its ability to raise additional debt, we believe it will have to rely on cash realizations from existing investments or financing through external co-investment structures to support its growth plans over the next few years. "We believe the company will maintain sufficient liquidity for the next 12–18 months. Burford's key sources of liquidity include its sizeable cash and equivalents of more than $700 million as of March 2026 and potential cash receipts, which averaged $615 million annually in the past two years. "Key uses include undrawn commitments, which were $1.78 billion as of Dec. 31, 2025, but we note that deployments toward these have historically been gradual (12%–30% annually). Assuming 18% of undrawn commitments are deployed in the next 12 months (about $320 million) and operating expenses (including interest) totaling $250 million - $300 million, Burford would require approximately $600 million of liquidity. Additionally, about 35% of undrawn commitments are discretionary, meaning Burford can control whether to deploy them." The debt maturity schedule is also well-staggered, with no significant debt maturities before 2028, which reduces nearterm refinancing risk. S&P's ratings continue to incorporate Burford's sizeable presence within its market, offset by the unpredictability over litigation finance investment realizations. The company holds a leading position in the developing niche of litigation finance and has grown its scale and market presence meaningfully, expanding its groupwide portfolio to $7.5 billion from $130 million at inception in 2009. While changes in YPF's asset valuation have an outsize impact on Burford's financials given its large size, we note that the company has a large legal finance investment portfolio consisting of 236 active cases. Nevertheless, the binary nature of litigation finance investing, with little principal protection, means investments can result in a near-complete loss, and the proportion of investments that return less than the invested capital is higher than those of most other rated finance company peers. Still, the very favorable payout of winners versus losers means that, at the portfolio level, Burford has generated strong cash returns. S&P said, "The stable outlook reflects our expectation Burford will maintain adequate liquidity and continue generating portfolio realizations sufficient to support operations for the next 12 months. We expect leverage in the 1.50x-2.75x range over the next few years. "We could lower the ratings in the next 12 months if liquidity becomes strained, whether due to higher-than-expected draws on unfunded commitments, reduced or delayed investment realizations, or if we expect the covenant-driven restrictions on issuing new debt to limit Burford's ability to manage its funding needs. "We could also downgrade the company if leverage remains above 2.75x on a sustained basis, either as a result of weaker operating performance, prolonged periods of low realizations, or additional impairments beyond the anticipated YPF writedown. "An upgrade is unlikely next year as we expect the company's leverage to remain above the levels permitted under its incurrence covenants. Over the longer term, we could raise our ratings if Burford achieves stable portfolio performance, reduces leverage well below 1.5x, and maintains strong liquidity and diversification of funding." CALL CORP: Moody's Assigns 'Caa1' CFR, Outlook Stable ----------------------------------------------------- Moody's Ratings assigned ratings to One Call Corporation ("One Call") including a Caa1 corporate family rating, and a Caa1-PD Probability of Default Rating. Moody's also assigned a Caa2 rating to One Call's senior secured second lien notes due 2032. The outlook is assigned stable. The Caa1 corporate family rating reflects One Call's elevated financial leverage pro forma for the Data Dimensions announced acquisition. The transaction will be financed through an incremental first-lien term loan (not rated) maturing in 2030 and $178 million senior secured second-lien notes maturing in 2032. On a pro forma basis, leverage increases by approximately 0.4x to approximately 10.0x as of December 31, 2025. Data Dimensions is a provider of a technology platform that connects payors and providers by digitizing and routing data such as medical records, bills, and insurance information to replace paper-based processes and enable more seamless data exchange. The acquisition provides additional growth opportunities and potential synergies that Moody's expects will support deleveraging, although execution risk remains. Governance risk considerations are material to the rating action, reflecting One Call's aggressive financial policies with regards to sustained elevated leverage and recent debt funded acquisition. Governance risk exposures include private equity ownership, which increases the risk of shareholder friendly actions that come at the expense of creditors. RATINGS RATIONALE One Call's Caa1 CFR is constrained by the company's very high financial leverage at approximately 10x at December 31, 2025 pro forma the Data Dimensions acquisition. Moody's expectations is for leverage to remain elevated, but decline moderately from current levels. Management has identified significant potential revenue and cost synergies tied to the acquisition, though Moody's forecasts assume only partial realization of these benefits. EBITDA growth has been limited in recent years due to industry dynamics, competitive pressures, and some net customer losses. Absent ongoing EBITDA growth, the company's capital structure will become unsustainable as debt will continue to grow due to PIK interest on the second lien notes. The rating is also constrained by concentration among the company's largest customers. One Call's rating is supported by the company's leading market position in the stable workers' compensation cost containment services industry and good geographic and product diversity. Moody's expects One Call to maintain good liquidity and generate at least $40million of free cash flow in 2026 with modest growth in 2027. This reflects mid-single-digit EBITDA growth, annual capex of approximately $30 million, and 100% PIK interest on the second lien notes. The first lien credit agreement prohibits One Call from paying cash interest on the second lien notes unless net first lien leverage is below 1.75x; Moody's estimates first lien net leverage is approximately 4.6x pro forma the acquisition. Liquidity is supported by a $50 million revolving credit facility (not rated) that expires in 2030 that is currently undrawn. Liquidity is further supported by a $75 million A/R facility due September 2027 (unused as of December 31, 2025) and $9 million of cash as of December 31, 2025, pro forma the debt raise transaction and acquisition. The revolver features a springing maximum first lien leverage covenant requirement of 6.75x that will be tested if revolver borrowings exceed 35% utilization. Moody's expects the company will maintain sufficient cushion. Alternate liquidity sources are limited, as the company's assets are fully encumbered by the senior secured credit facilities. The $1,060 million first lien term loan due September 2030 and $50 million first lien revolver expiring September 2030 are not rated. The $628 million second lien notes due 2032 ($843 million outstanding as of December 31, 2031 pro forma the new issuance and accumulated PIK interest) are rated Caa2, reflecting their junior position relative to the first lien debt. One Call's CIS-5 indicates that the rating is lower than it would have been if ESG risk exposures did not exist and that the negative impact is more pronounced than for issuers scored CIS-4. One Call has exposure to governance considerations (G-5), reflecting its aggressive financial policies as evidenced by its very high leverage. The company also has a history of debt exchanges. The outlook is stable. Moody's expects One Call will manage to grow earnings modestly over the next 12-18 months and that leverage will remain above 9x. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if liquidity deteriorates, or Moody's believes that the company's capital structure is becoming increasingly unsustainable. The ratings could also be downgraded if the company fails to generate enough earnings to cover all its fixed charges. The ratings could be upgraded if One Call improves operating results and consistently generates positive free cash flow. Quantitatively, the ratings could be upgraded if leverage is sustained below 7.5x. One Call Corporation ("One Call") provides cost containment services related to workers' compensation claims. The company acts as an intermediary between healthcare providers, payors and patients. Customers include insurance carriers, third-party administrators, self-insured employers, and state funds in the workers compensation industry. Annual revenues are approximately $1.1 billion. The company is owned by affiliates of KKR, Blackstone Credit, and funds managed by Chatham Asset Management LLC. The principal methodology used in these ratings was Business and Consumer Services published in February 2026. CAROLINA CLEANING: Seeks to Hire R. Keith Johnson PA as Attorney ---------------------------------------------------------------- Carolina Cleaning Company Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of North Carolina to hire R. Keith Johnson, P.A. as attorney. The firm will provide these services: a. render legal advice with respect to its powers and duties as Debtor-in-Possession in the continued operation of its business and management of its property; b. represent Debtor in lawsuits now pending against Debtor; and c. perform all other legal services for Debtor-in-Possession which may be necessary. The firm will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. R. Keith Johnson, a partner at R. Keith Johnson, P.A., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: R. Keith Johnson R. Keith Johnson, P.A. 1275 S. NC 16 Bus. Hwy., Stanley, NC 28164 Tel: (704) 827-4200 About Carolina Cleaning Company Inc. Carolina Cleaning Company Inc. provides commercial, industrial, and institutional cleaning services, including janitorial services, floor maintenance, carpet and tile cleaning, and disinfecting services for offices, schools, churches, and warehouses. The company is based in Sherrills Ford and operates in North Carolina and South Carolina within the building services and facilities maintenance industry. Carolina Cleaning Company Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D.N.C. Case No. 26-50067) on February 19, 2026, listing $9,410 in assets and $1,180,178 in liabilities. The petition was signed by Jeffery Coffey as president. Judge Laura T Beyer presides over the case. R. Keith Johnson, Esq. at LAW OFFICES OF R. KEITH JOHNSON, P.A. serves as the Debtor's counsel. CATAWBA NATION: $345MM Loan Add-on No Impact on Moody's 'B2' CFR ---------------------------------------------------------------- Moody's Ratings said that Catawba Nation Gaming Authority's (Catawba) B2 corporate family rating and B2-PD probability of default rating are not affected by the proposed $345 million add-on to the company's $535 million senior secured term loan B due March 2032, which is rated B2. The outlook remains unchanged at stable. Proceeds from the proposed $345 million fungible add-on, which will increase the size of the existing senior secured term loan B to $880 million, will be used to fund the $303 million construction costs of the Catawba Center, which consists of a new 4-story parking garage and casino shell space that is physically connected to the Two Kings permanent casino, fund a one-time $31 million distribution to the Catawba Indian Nation for various infrastructure projects, pay related transaction fees, and add minimal cash to the balance sheet. RATINGS RATIONALE Catawba Nation Gaming Authority's B2 CFR reflects the debt-financed nature of the casino development and expansion project, ramp-up risk associated with most new casino projects, and single asset profile. Moody's expects leverage to remain below 6x debt/EBITDA during the construction period. Risks associated with general economic conditions, especially for sectors like gaming that heavily depend on consumer discretionary spending, remain a constraint. Positively, Catawba's existing operations are significant and partially mitigate ramp up risk because they will continue to operate as is during the construction of the new larger facilities. The absence of gaming competition in the area, combined with the casino's location approximately a 40-minute drive from downtown Charlotte, North Carolina, offers a significant population base from which management expects to attract customers. The stable rating outlook reflects Moody's expectations that Catawba will have sufficient funds to complete construction while maintaining existing operations, with the appropriate level of contingency reserves typically provided for this type of development project. The stable outlook also reflects Catawba's good liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's do not expect a ratings upgrade during the construction period. However, once construction is complete, Catawba's ratings could be upgraded if the project successfully ramps up and debt/EBITDA falls below 4.0x. Ratings could be downgraded if the project experiences significant cost over-runs or construction delays, or existing operations weaken or are disrupted for any reason. Additionally, beyond the construction period, ratings could be downgraded if the ramp-up performance is slower than expected, Moody's expectations on the general economy and consumer spending materially worsen, competition unexpectedly increases, liquidity weakens, or debt/EBITDA increases above 6.0x. Catawba Nation Gaming Authority operates Two Kings Casino in Kings Mountain, North Carolina. Catawba is 100% owned by the Catawba Indian Nation. CHICAGO RIVET & MACHINE: Cherry Bekaert Raises Going Concern Doubt ------------------------------------------------------------------ Chicago Rivet & Machine Co. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Chicago, Illinois-based Cherry Bekaert LLP, the Company's auditor since 2025, issued a "going concern" qualification in its report dated March 24, 2026, citing that the Company has incurred declining revenues, recurring operating losses, recurring negative cash flows from operations, and a continued reduction in liquidity that raise substantial doubt about its ability to continue as a going concern. The Company incurred significant recurring operating losses primarily driven by continuous decline in revenues, recurring negative cash flows from operations and continued reduction in liquidity. The Company reported operating losses of $1,196,717 and $5,164,054 for the years ended December 31, 2025 and 2024, respectively. For the years ended December 31, 2025 and 2024, the Company reported net losses of $1,083,214 and $5,615,614, respectively. Net sales for the years ended December 31, 2025 and 2024, were $27,890,260 and $26,986,627, respectively. The Company's liquid assets at December 31, 2025 consist of cash and cash equivalents totaling $1,718,237. The Company's debt consists of $500,000 outstanding under the March 2025 Credit Agreement revolving line of credit at December 31, 2025. The Company's declining revenues, recurring operating losses and negative cash flows from operations, and continued reduction in liquidity, raise substantial doubt about the Company's ability to continue as a going concern within the next 12 months. In response to these challenges, the Company has developed and continues to implement a series of strategic actions aimed at improving liquidity and ensuring business continuity. These include: (a) taking action to sell certain H&L assets in the first half of 2026. These assets in the amount of $179,254 were classified as Assets held for sale at December 31, 2025 in the Consolidated Balance Sheets, (b) renewal of the March 2025 Credit Agreement revolving line of credit with a borrowing capacity of $2,500,000 to continue to finance operations, (c) evaluation of other financing sources in addition to the March 2025 Credit Agreement, including exploring the potential for a real estate sale leaseback or similar transaction, or seeking to potentially raise additional capital. Management believes that these actions, if successfully executed, will mitigate the conditions giving rise to substantial doubt. However, uncertainty remains with respect to the Company's ability to increase sales, secure additional financing or liquidity, comply with loan covenants, or achieve projected cost savings. If these efforts are not successful, the Company may be required to seek alternative strategic actions. As a result, substantial doubt remains regarding the Company's ability to continue as a going concern. A full text copy of the Company's Annual Report is available at https://tinyurl.com/48pt3pe7 About Chicago Rivet & Machine Co. Warrenville, Ill.-based Chicago Rivet & Machine Co. operates in the fastener industry in North America. It operates through Fasteners and Assembly Equipment. The Fastener segment manufactures and sells rivets, cold-formed fasteners and parts, and screw machine products.The Assembly Equipment segment engages in the manufacture and sale of automatic rivet setting machines, as well as parts and tools for related machines. It sells its products to automotive industry through independent sales representatives. As of December 31, 2025, the Company had $23,301,439 in total assets, $4,468,137 in total liabilities, and $18,833,302 in total stockholders' equity. CLEARSIDE BIOMEDICAL: Seeks to Extend Plan Exclusivity to June 22 ----------------------------------------------------------------- Clearside Biomedical, Inc., asked the U.S. Bankruptcy Court for the District of Delaware to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to June 22 and August 20, 2026, respectively. The Debtor explains that relevant factors demonstrate that there is more than sufficient cause to approve the extension of the Exclusive Periods: * This Chapter 11 Case has involved complex legal and factual issues. As described in more detail in the First Day Declaration, the Debtor's business involved novel ocular drug therapies, and its portfolio of products included, among other complex assets, a number of clinical programs in varying stages of development. As a result, during its sales and marketing process, the Debtor engaged in extensive diligence and negotiations with various interested parties, including 41 prospective buyers. * Since the commencement of the Chapter 11 Case, the Debtor has, among other things: (i) minimized the adverse effects caused by the commencement of this Chapter 11 Case on its business by securing various (a) first-day relief on both interim and final basis and (b) second-day relief; (ii) retained estate professionals in this Chapter 11 Case; (iii) obtained entry of the Bidding Procedures Order and undertook the various tasks necessary to advance the Sale Process, including the preparation of marketing materials and responding to diligence requests from potential purchasers; (iv) filed its schedules and statements and the initial report pursuant to Bankruptcy Rule 2015.3; (v) obtained entry of a bar date order; (vi) prepared and filed an initial form of the Combined Disclosure Statement and Plan; (vii) continued its post-petition marketing and sale process to consummate a value-maximizing sale or sales of its Assets for the benefit of its estate and its stakeholders, including the commencement of an Auction; (viii) responded to numerous inquiries and demands by parties in interest; (ix) reached a settlement with HCR on complex factual and legal issues that will allow the Debtor to recommence the Auction for the sale or sales of its Assets; (x) worked with the U.S. Trustee, the Ad Hoc Group, and other interested parties to resolve comments and questions with respect to various filings in this Chapter 11 Case, including most recently the proposed order approving the Settlement Agreement; and (xi) handled various other tasks related to the administration of the Debtor's estate and this Chapter 11 Case. * Since the filing of this Chapter 11 Case, the Debtor has continued to pay substantially all of its undisputed, postpetition expenses and invoices. * The requested extension of the Exclusive Periods is the first such request made in this Chapter 11 Case and comes approximately three months after the Petition Date. As discussed, the Debtor has expended substantial resources in: (i) running a competitive postpetition marketing and sale process; (ii) complying with the requirements of the Bankruptcy Code and the Bankruptcy Rules; and (iii) otherwise administering its estate for the benefit of its stakeholders. * The Debtor is not seeking an extension to prejudice the Debtor's creditor and equity constituencies or grant the Debtor any unfair bargaining leverage. The Debtor has no ulterior motive in seeking an extension of the Exclusive Periods. The Debtor has been in regular communication with its creditor and equity constituencies on numerous issues facing its estate, including formulation of a path forward for the Chapter 11 Case, and has worked diligently in the prepetition and postpetition periods to maximize the value of its estate. The Debtor claims that having resolved its dispute with HCR and with the Auction to recommence promptly, the Debtor is positioned to move this Chapter 11 Case forward expeditiously, and the results of the sale process will directly inform the Debtor's determination of the most viable path to plan confirmation. Consistent with its fiduciary duties, the Debtor will use the extended Exclusive Periods to continue to evaluate the Plan Sponsor Bid and other transaction proposals as the Debtor determines a path forward that will maximize value for the estate and all stakeholders. In addition, termination of the Exclusive Periods at this critical juncture would adversely impact the Debtor's efforts to preserve and maximize the value of its estate and the progress of this Chapter 11 Case. The Debtor has invested substantial time and resources in evaluating its various options and advancing its sale process, and termination of the Exclusive Periods and permitting competing plans to be filed would undermine that progress, introduce uncertainty into a process that is finally moving forward following the resolution of the HCR dispute, and jeopardize the Debtor's ability to confirm a plan that serves the best interests of its stakeholders and successfully concludes this Chapter 11 Case. Co-Counsel to the Debtor: RICHARDS, LAYTON & FINGER, P.A. Daniel J. DeFranceschi, Esq. Michael J. Merchant, Esq. Alexander R. Steiger, Esq. One Rodney Square 920 N. King Street Wilmington, Delaware 19801 Telephone: (302) 651-7700 Emails: defranceschi@rlf.com merchant@rlf.com steiger@rlf.com Co-Counsel to the Debtor: COOLEY LLP Daniel Shamah, Esq. Lauren A. Reichardt, Esq. Olya Antle, Esq. Miriam Peguero Medrano, Esq. 55 Hudson Yards New York, NY 10001-2157 Telephone: (212) 479-6000 Emails: dshamah@cooley.com lreichardt@cooley.com oantle@cooley.com mpegueromedrano@cooley.com About Clearside Biomedical Inc. Clearside Biomedical, Inc., is a biopharmaceutical firm specializing in the development and commercialization of treatments for eye diseases. Clearside Biomedical Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-12109) on Nov. 23, 2025. In its petition, the Debtor estimated assets of up to $10 million and estimated liabilities of up to $100 million. The Debtor tapped Cooley LLP and Richards, Layton & Finger, PA as counsel; Epiq Corporate Restructuring, LLC as administrative advisor; and Berkeley Research Group, LLC as financial advisor. CROSBY MARINE: Gets Interim OK for DIP Financing From JMB --------------------------------------------------------- Crosby Marine Transportation LLC, Crosby Tugs, Crosby Dredging, and Bertucci Contracting Company received interim approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to use cash collateral and obtain debtor-in-possession financing to get through bankruptcy. The financing is a $60 million senior secured post-petition superpriority DIP term loan facility, provided by JMB Capital Partners Lending, LLC. This facility is designed to provide the necessary "runway" for the Debtors to complete their ongoing marketing and sale processes, specifically the sale of their valuable 49.9% interest in Luhr Crosby, LLC, and to avoid a "disastrous" full-scale liquidation. The $60 million facility is split evenly between new liquidity and the restructuring of existing debt: New Money DIP Loan ($30M): Fresh capital to fund operations and bankruptcy administration. Under the interim order, the Debtors are granted immediate access to $10 million of this amount. Roll-Up DIP Loan ($30M): A dollar-for-dollar conversion of outstanding prepetition debt originally held by Hancock Whitney (and recently purchased by JMB Capital) into the DIP facility. Superpriority Status: The loan is secured by "priming liens," meaning it takes priority over existing liens on the Debtors' assets, including the equity interest in Luhr Crosby and all cash collateral. The Debtors, a 50-year-old marine transportation staple with a fleet of approximately 90 tugs, cited a perfect storm of challenges leading to their "cash liquidity crisis": Unsustainable Financing: The companies turned to Merchant Cash Advance firms for short-term relief, incurring interest rates nearing 100%. Aggressive Collection Tactics: The filing became a necessity after MCA firms attempted to seize customer receivables, causing confusion and threatening the Debtors' ability to meet payroll. Industry Headwinds: Volatile fuel costs, a contraction in Gulf offshore energy operations, and reduced dredging projects in Louisiana. As of the Petition Date, the Debtors carry approximately $162.8 million in funded debt across 14 collateral-based facilities. The restructuring strategy, led by a Chief Restructuring Officer (CRO) and Raymond James, focuses on two Marketing Processes: 1. Luhr Crosby Process: Selling the minority stake in a highly successful joint venture that remains unaffected by the bankruptcy. 2. Recapitalization Process: A comprehensive effort to refinance outstanding debt and stabilize the balance sheet. The DIP Facility acts as a "liquidity cushion," ensuring that the Debtors can maintain relationships with vendors and employees while these high-stakes sales are finalized. The Debtors argue that immediate access to their cash on hand and deposit accounts is essential to maintain daily operations, meet payroll, and fund the administration of their Chapter 11 cases. Without this authorization, the Debtors claim they would face irreparable harm, as they would lack the working capital necessary to preserve their business as a going concern or effectuate a successful reorganization plan. As a condition for using this cash, which is subject to the liens of Existing Secured Parties, the Debtors offer a comprehensive adequate protection package to shield these creditors from any diminution in the value of their collateral. This package includes granting the secured parties replacement liens and "superpriority" administrative expense claims, which would rank above most other claims against the estate. The Debtors also outline specific "Termination Events"—such as the failure to make required payments, the seizure of company vessels, or the loss of maritime insurance—that would end the Debtors' right to use the cash. To ensure the smooth transition into bankruptcy, the Debtors also request a limited modification of the automatic stay to allow for the perfection of these new liens and a "Carve Out" to ensure that court fees and professional advisors can be paid even in the event of a default. The final hearing is set for April 23. The deadline for filing objections is on April 16. The interim DIP order is available at: http://bankrupt.com/misc/CrosbyMarine_InterimDIPOrder.pdf The interim cash collateral order is available at: http://bankrupt.com/misc/CrosbyMarine_InterimCashCollOrder.pdf JMB, as DIP lender, is represented by: Mark A. Mintz, Esq. Jones Walker LLP 201 St. Charles Avenue, Suite 5100 New Orleans, LA 70170-5100 Tel: 504-582-8368 Fax: 504-589-8368 mmintz@joneswalker.com About Crosby Marine Transportation LLC Crosby Marine Transportation LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 26-10678) on March 23, 2026. In the petition signed by Lawrence Perkins, chief restructuring officer, the Debtor disclosed up to $500 million in both assets and liabilities. Judge Meredith S. Grabill oversees the case. Benjamin W. Kadden, Esq., at Lugenbuhl, Wheaton, Peck, Rankin & Hubbard, represents the Debtor as legal counsel. JMB Capital Partners Lending, LLC, as DIP lender, is represented by: MARK A. MINTZ Jones Walker LLP 201 St. Charles Avenue, 51st Floor New Orleans, LA 70170 Telephone: (504) 582-8000 Facsimile: (504) 589-8260 Email: mmintz@joneswalker.com CUMULUS MEDIA: Seeks to Hire KPMG LLP as Tax Consultant ------------------------------------------------------- Cumulus Media Inc., et al., seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ KPMG LLP as tax consultant. KPMG will provide these services: Tax Consulting Services A. Distressed Company Services i. KPMG shall provide the following services in connection with the Debtors' potential restructuring of their debt and/or capital structure for US federal and state income tax purposes: Preliminary Numerical Analysis a) Analyze potential cancellation of debt income or other gains triggered by the Proposed Restructuring, including the application of Section 108; and b) Provide cash tax modeling and analysis of Debtors' tax attributes, including net operating losses, tax basis in assets, and tax basis in subsidiaries' stock as relevant to the Proposed Restructuring. Other Numerical Analysis a) Analyze Section 382 issues, including a sensitivity analysis to reflect the Section 382 impact of the proposed and/or hypothetical equity transactions pursuant to the Proposed Restructuring and analysis of Section 382(l)(5) and (l)(6), if relevant; b) Analyze net unrealized built-in gains and losses and Notice 2003-65 as applied to the ownership change, if any, resulting from or in connection with the Proposed Restructuring; c) Analyze the application of the attribute reduction rules under Section 108(b), including a benefit analysis of Sections 108(b)(5) and 1017(b)(3)(D) elections; d) Analyze the tax implications of any dispositions of assets pursuant to the Proposed Restructuring; e) Analyze potential bad debt and retirement tax losses; and f) Transaction cost analysis. Tax Structuring Alternatives a) Provide observations and recommendations on the tax profile of the intended resulting operating structure and also in connection with the execution of the Proposed Restructuring and any transaction documents, including intercompany agreements, financing, and management incentive plans; and b) Evaluate structural alternatives and prepare a set of structure slides to outline the tax steps needed to be taken to meet the desired tax transaction end state in a variety of potential scenarios (in coordination with Debtors' legal counsel). Transaction Execution Consultation a) Analyze tax aspects of drafts of the transaction agreements prepared by the Debtors and/or the Debtors' legal counsel; b) Analyze tax aspects of draft disclosures, draft presentations describing the Proposed Restructuring, and draft partnership operating agreements prepared by the Debtors and/or the Debtors' legal counsel/financial advisors. c) Assist the Debtors, from a tax structuring perspective, in discussions with creditors' (and any other third parties') tax counsel; and d) Prepare technical memoranda to summarize the tax transaction structure and document the resolution of significant tax matters that may arise over the course of the engagement. Additional Transaction Services a) At the Debtors' request, KPMG will provide tax advice with respect to other tax matters associated with the Proposed Restructuring, post-acquisition business activities or operation of the structure. The firm's hourly billing rates are: Partners $1,220 to $1,596 Managing Directors $1,188 to $1,420 Directors/Senior Managers $1,108 to $1,220 Managers $860 to $1,108 Senior Associates $624 to $840 Associates $468 to $512 KPMG received a retainer in the amount of $100,000. David R. Helenbrook, CPA, a partner of KPMG LLP, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Christopher W. Woll, CPA KPMG LLP 200 E. Randolph Street, Suite 5500 Aon Center Chicago, IL 60601-6436 Phone: (312) 665-1372 About Cumulus Media Inc. Cumulus Media is an audio-first media company delivering premium content to a quarter billion people every month -- wherever and whenever they want it. Cumulus Media engages listeners with high-quality local programming through 394 owned-and-operated radio stations across 84 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, US Soccer, AP News, and the Academy of Country Music Awards, across more than 7,800 affiliated stations through Westwood One, a leading national audio network; and inspires listeners through the Cumulus Podcast Network, an established and influential platform for original podcasts that are smart, entertaining, and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact, and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 26-90346) on March 5, 2026. In the petition signed by Richard Denning, Executive Vice President, Secretary & General Counsel, the Debtor disclosed up to $10 billion in both assets and liabilities. As of Sept. 30, 2025, the Company had $1,078,217,000 in total assets and $1,135,135,000 in total liabilities. Judge Alfredo R. Perez oversees the case. Lawyers at Paul, Weiss, Rifkind, Wharton & Garrison LLP serve as counsel. Porter Hedges LLP, represents the Debtor as local counsel. The Debtors hired as Alvarez & Marsal North America, LLC as restructuring advisor; Moelis & Company as financial advisor; and Kurtzman Carson Consultants, LLC d/b/a Verita Global as claims, noticing, solicitation & certification agent. DCA OUTDOOR: Comm Taps Geiger Law/Pospisil Swift as Special Counsel ------------------------------------------------------------------- The Official Committee of Unsecured Creditors of DCA Outdoor, Inc. and affiliate seeks approval from the U.S. Bankruptcy Court for the Western District of Missouri to employ Geiger Law, LLC and Pospisil Swift LLC as its as special litigation counsel. The firm will review, analyze, investigate, and if necessary, prosecute claims against parties where Spencer Fane may reasonably be said to have a conflict of interest, including without limitation against or involving parties identified in Spencer Fane's disclosures made in the Application of the Official Committee of Unsecured Creditors For Retention of Spencer Fane, LLP. The firm's will be paid at these rates: Matthew Geiger $500 per hour Michael Pospisil $500 per hour Matthew Swift $500 per hour Paralegals $150 per hour As disclosed in the court filings, Geiger Law, LLC and Pospisil Swift LLC are each a "disinterested person," as defined in section 101(14) of the Bankruptcy Code. The counsels can be reached through: Matthew Geiger, Esq. Geiger Law, LLC 2501 W 159th Terrace Stilwell, KS 66085 Tel: (913) 777-7681 Email: matt@geigerlawkc.com - and - Michael D. Pospisil, Esq. Matthew T. Swift Pospisil Swift LLC 1600 Genessee St., Suite 340 Kansas City, MO 64102 Phone: (816) 895-6440 About DCA Outdoor, Inc. DCA Outdoor Inc. established in 2016, is a vertically integrated green industry organization headquartered in Kansas City, Missouri. The Company connects various sectors -- including agricultural production, landscape distribution, retail, agritourism, and transportation -- through its family of brands. The DCA Outdoor family comprises several brands including Schwope Brothers Tree Farms, Utopian Plants, RIO, Anna Evergreen, Brehob Nurseries, KAT Landscape, Colonial Gardens, PlantRight, PlantRight Supply, and Utopian Transport. DCA Outdoor Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Miss. Case No. 25-50053) on Feb. 20, 2025. In its petition, the Debtor estimated assets up to $50,000 and estimated liabilities between $50 million and $100 million. Bankruptcy Judge Cynthia A. Norton handles the case. The Debtor tapped Larry E. Parres, at Lewis Rice LLC as counsel, and Creative Planning, LLC and its affiliate BerganKDV as audit and tax professionals. ETEGRA INC: Seeks to Extend Plan Exclusivity to June 2 ------------------------------------------------------ Etegra, Inc. asked the U.S. Bankruptcy Court for the Southern District of Florida to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to June 2 and August 3, 2026, respectively. The Debtor explains that it requests the additional time in this case as it is reviewing and analyzing its options and ability to reorganize. Specifically, immediately prior to the filing of this case, the Debtor made many significant changes to bring the company to a profitable posture, such as reducing office space and laying off employees. The Debtor asserts that it is not seeking this extension to delay the administration of the case, and pursuant to Section 1121(c)(3) of the Bankruptcy Code, is normally allowed 120 days to file its plan. The Debtor further asserts that its request for extension of the Exclusive Periods is reasonable given the Debtor's progress to date and the current status of all post-petition payables. As such, good cause exists to grant the relief requested herein and extend the Exclusive Periods. The Debtor does not believe that any creditors or parties in interest will be prejudiced by this extension. Etegra Inc. is represented by: Dana Kaplan, Esq. KELLEY KAPLAN DELANEY & ELLER, PLLC 1665 Palm Beach Lakes Blvd., Suite 1000 West Palm Beach, FL 33401 Telephone: (561) 491-1200 Facsimile: (561) 684-3773 About Etegra, Inc. Etegra is an architect-engineer firm that provides architecture, engineering, and construction management services primarily for the U.S. Department of Defense and other federal agencies, with additional civil, mechanical, electrical, plumbing, and fire protection engineering work for local public and private clients. Etegra, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 25-24345) on Dec. 4, 2025, listing $436,230 in assets and $6,765,257 in liabilities. The petition was signed by Achyut Kumar Allady as authorized representative of the Debtor. Judge Erik P Kimball presides over the case. Craig I. Kelley, Esq. at KELLY KAPLAN & ELLER, PLLC represents the Debtor as counsel. FIFTY NINE: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Fifty Nine Hundred Commonwealth Corp. 5900 Commonwealth Street Detroit, MI 48208 Business Description: Fifty Nine Hundred Commonwealth Corp. is a single-asset real estate entity, as defined under 11 U.S.C. Section 101(51B), focused on owning and managing a single income- generating property. Chapter 11 Petition Date: March 31, 2026 Court: United States Bankruptcy Court Eastern District of Michigan Case No.: 26-43574 Judge: Hon. Maria L Oxholm Debtor's Counsel: Yuliy Osipov, Esq. OSIPOV BIGELMAN, P.C 20700 Civic Center Drive, Suite 420 Southfield, MI 48076 Tel: 248-663-1800 E-mail: yo@osbig.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Peter Adamo as owner. The Debtor has confirmed in the petition that it has no unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/LO6WK3A/Fifty_Nine_Hundred_Commonwealth__miebke-26-43574__0001.0.pdf?mcid=tGE4TAMA FMC CORP: Fitch Alters Outlook on 'BB+' LongTerm IDR to Negative ---------------------------------------------------------------- Fitch Ratings has revised FMC Corporation's (FMC) Rating Outlook to Negative from Stable and affirmed its Long-Term Issuer Default Rating (IDR) at 'BB+', its senior unsecured rating at 'BB+' with a Recovery Rating of 'RR4', its Short-Term IDR and commercial paper at 'B' and its junior subordinated rating at 'BB-'/'RR6'. The Negative Outlook reflects the potential for EBITDA leverage to exceed the 4.5x downgrade threshold if FMC cannot reduce debt through asset sales or commercial transactions. The Outlook also reflects uncertainty from FMC's consideration of strategic alternatives, including the potential sale of the company. The 'BB+' IDR reflects greater generic competition and resulting pressure on earnings and cash flow generation, driving higher leverage over a sustained period. The ratings also consider FMC's position as a leading global agrochemical company, R&D investment in its growth portfolio and efforts to improve FCF through a major dividend cut and cost restructuring. Key Rating Drivers Higher Leverage Increases Execution Risk: Fitch believes that FMC will not achieve meaningful debt reduction without successfully entering into licensing agreements for some of its intellectual property. Proceeds from an eventual sale of its India operations will likely not cut debt sufficiently. The company is exploring licensing opportunities to support debt reduction. However, the timing and sizing of licensing deals is uncertain. An inability to execute on such a transaction would weigh on FMC's ability to cut debt and would be negative for the rating. Fitch expects leverage to exceed 4.5x in 2025 on lower EBITDA and negative FCF after dividends and remain high through 2028. While leverage starts to decline in 2026 due to debt reduction efforts, Fitch expects operating weakness to persist in 2026 as near-term gains from the growth portfolio only partially offset generic competition and higher working capital needs to meet competitor payment terms. Risk from generics is increasing while FMC is adding resources in Brazil to win large-farmer business, raising execution risk and supporting higher leverage over a sustained period. Generic Competition: Heightened generic penetration in Latin America weighs on pricing and volumes for branded Rynaxypyr and Cyazypyr (together about 30% of revenue). FMC announced a manufacturing restructuring effort that is expected to cut operating costs by around $175 million annually and improve its competitive position. In addition, the company is shifting growth to data-protected and new active ingredients that face less generic pressure. These steps should improve FMC's price competitiveness versus generics, but at lower margins. FMC's growth portfolio has partially offset pressure on the core portfolio but has not fully countered headwinds from generics. Growth for that part of FMC has fallen somewhat short of expectations. Over time, the growth portfolio should stabilize some of the runoff FMC faces from generic competition. Growth in plant health and active-ingredient products should help it maintain a competitive edge and pricing power. Failure to sustain commercial success from new launches could pressure credit quality. Seasonality: Working capital swings are significant, with net working capital tied to the growing season and customer stocking patterns, creating pronounced intra-year fluctuations in earnings and liquidity. FMC exited 2025 with higher seasonal borrowings due to product return actions in India and some extended payment terms in Latin America. FMC's elevated leverage and potential covenant tightness make this seasonality a material consideration. Dividend Cut Supports Cash Needs: FMC's dividend cut reduces annual cash outlays by about $250 million starting in 2026. Fitch expects the reduced dividend burden to position the company to better manage its restructuring costs and higher interest expense, leading to roughly break-even FCF in 2026 that could improve over time. Limited Near-Term Gas Exposure: Fitch anticipates limited near-term cost and cash flow impacts from Middle East conflict supply chain disruptions as FMC is further downstream and maintains adequate inventory to withstand a gas price shock. Sustained higher commodity prices would impact FMC as the company's ability to pass on higher costs may be limited, particularly in the more price competitive part of its portfolio. Diversified Global Platform: The rating is supported by FMC's role as a major global crop protection company, with a diverse product mix, geographic footprint and crop exposure. Sales are balanced across Latin America, North America, EMEA and Asia, with revenue from a variety of crops including soybeans, fruits and vegetables, rice, and others. Demand is largely stable, driven by food, animal feed and biofuels, leading to predictable consumption. Subordinated Notes Assigned Equity Credit: Fitch has assigned 50% equity credit to FMC's junior subordinated notes under the "Corporate Hybrids Treatment and Notching Criteria." Key factors include the notes' subordination to senior debt, absence of material covenants or events of default, maturity beyond five years with no call dates within that period and FMC's unconstrained ability to defer coupon payments for more than five years, although deferred coupon payments are cumulative. Fitch believes that FMC plans to have this instrument in its capital structure until leverage materially improves to support a stronger rating. Peer Analysis FMC's credit profile is positioned between peer rating tiers, with profitability metrics supporting the 'BB+' rating but cash generation and leverage trends supporting the Negative Outlook. FMC's 2025 EBITDA margin ranks among the strongest in the peer group, matching The Mosaic Company's (BBB/Stable) margins and approaching those of Corteva, Inc.'s (A/RWN). FMC's margins exceed those of Huntsman Corp. (BB+/Negative), Celanese Corp. (BB+/Negative) and H.B. Fuller Company (BB/Stable). FMC's operational efficiency remains a rating strength despite recent volume pressures. FMC's EBITDA leverage is positioned between peer rating tiers. Compared to higher-rated peers Corteva and Mosaic, FMC is meaningfully weaker. However, FMC is stronger than 'BB+' rated chemical peers Celanese and Huntsman, as those issuers are facing a sharper industry downturn. FMC's negative FCF in 2025 is the worst absolute performance in the peer set, driven by one-time restructuring and working capital usage. Only Huntsman posted a negative FCF margin while Corteva generated over $2.3 billion in FCF. FMC's negative FCF — though expected to improve in 2026 — distinguishes it from investment-grade peers and underscores near-term deleveraging risk. FMC's EBITDA interest coverage is adequate for 'BB+' but trails that of stronger rated Corteva and Mosaic, reflecting FMC's elevated debt burden. Coverage compares favorably to Celanese (2.5x) and Huntsman (3.0x). Fitch’s Key Rating-Case Assumptions - Revenue declines in 2026, driven by greater generic competition and lower partner sales, partially offset by revenue in FMC's growth portfolio. Revenue growth improves in 2027 as the company laps easier comparisons and realizes better price, mix and volumes from increased sales in its growth portfolio. Revenue growth in the low single digits thereafter; - Gross profit margins improve over the forecast period as FMC realizes benefits from restructuring initiatives in 2027 and 2028, as well as modest mix-shift benefit from the growth portfolio; - R&D averaging around 7% of sales. Flat selling, general and administration expenses in 2026 and slight growth in 2027, as cost savings from restructuring largely offset additional corporate and marketing investments; - Capex around 2.5%-3% of revenue; - Dividends in line with management guidance of $40 million annually. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bbb-, Lower), Sector Characteristics (bbb-, Moderate), Market and Competitive Positioning (bbb-, Higher), Diversification and Asset Quality (bbb-, Moderate), Company Operational Characteristics (bbb, Moderate), Profitability (a-, Moderate), Financial Structure (bb-, Higher), and Financial Flexibility (bbb-, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 5% weight for the historical year 2025, 5% for the forecast year 2026, 20% for the forecast year 2027, 20% for the forecast year 2028, 25% for the forecast year 2029 and 25% for the forecast year 2030. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'a' results in no adjustment. - The SCP is 'bb+'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage durably above 4.5x with no credible pathway to deleveraging; - Free cash flow, after dividends, consistently at or near break-even. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Gross debt reduction and/or improved operating performance leading to EBITDA leverage sustained below 3.5x; - Successful broadening of the business platform through diamide product extensions and/or new product introductions, leading to EBITDA margins recovering to the mid-20s. The Outlook could be revised to Stable if FMC reduces EBITDA leverage durably below 4.5x, potentially through a mix of asset sales and licensing agreements. Liquidity and Debt Structure FMC continues to maintain comfortable liquidity despite a jump in working capital usage in 2025. At YE 2025, FMC held about $585 million in cash and had more than $1.1 billion available under its $2 billion revolving credit facility, which matures in 2028 and includes an accordion to $2.75 billion. In December 2025, FMC amended its financial covenants. The company agreed to certain limitations on subsidiary debt and dividend increases, as well as a springing lien based on certain rating agency thresholds. Fitch expects FMC to obtain additional covenant headroom as needed, albeit with potential additional limitations. FMC has $500 million of debt maturing in October 2026, which Fitch expects the company to refinance ahead of maturity. Beyond that note, FMC has no other material maturities before 2029. Issuer Profile FMC is a crop protection company focused on insecticides, herbicides and fungicides with a global manufacturing platform and diversified sales footprint across Latin America, North America, EMEA and Asia. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for FMC Corporation. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- FMC Corporation LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B senior unsecured LT BB+ Affirmed RR4 BB+ jr subordinated LT BB- Affirmed RR6 BB- senior unsecured ST B Affirmed B G D FAMILY: Gets Final OK to Use Cash Collateral ------------------------------------------------ The U.S. Bankruptcy Court for the District of Nevada entered a final order authorizing G D Family Inc., doing business as Hobak BBQ Restaurant, to use cash collateral. Under the final order, the Debtor is authorized to use cash collateral in the ordinary course of business in accordance with a court-approved budget, subject to a 10% monthly variance. As adequate protection, the Debtor must make monthly payments of $9,906 to the U.S. Small Business Administration, with payments due by the 15th of each month. In addition, the SBA will be granted a superpriority claim and replacement liens on the Debtor's assets limited to any decline in collateral value. The order restricts the Debtor from granting any liens senior or equal to existing pre-petition secured interests. The order does not determine the validity or priority of pre-petition liens and preserves the Debtor's rights to challenge them. The final order is available at http://bankrupt.com/misc/GDFAMILY_FinalCashCollOrder.pdf G D Family, a restaurant operator, filed for Chapter 11 to address roughly $1.9 million in SBA disaster loans, about $660,000 in tax liabilities, merchant cash advances, and other unsecured and guaranty obligations. About G D Family Inc. G D Family Inc. runs the Hobak BBQ Restaurant in Las Vegas, Nevada, serving Korean cuisine with a 1980s street-inspired theme, featuring traditional meat displays and warehouse-style interiors, and catering to a younger audience who values both food quality and dining experience. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 26-10539) on January 29, 2026, with $1,310,760 in assets and $3,802,026 in liabilities as of January 7, 2026. Jang Hyun Kim, president, signed the petition. Judge August B. Landis presides over the case. Matthew C. Zirzow, Esq., at Larson & Zirzow, LLC represents the Debtor as legal counsel. GRACE LIMOUSINE: Files Amendment to Disclosure Statement -------------------------------------------------------- Grace Limousine, LLC submitted an Amended Disclosure Statement with respect to Plan of Reorganization dated March 24, 2026. Since the Petition Date, the Debtor has remained in possession of its Assets and managed its business as debtor-in-possession under Sections 1107 and 1108 of the Bankruptcy Code. In May 2020, the Debtor and the SBA entered into an agreement wherein the SBA agreed to lend to the Debtor the original sum of $500,000. To secure the obligations owed by the Debtor to the SBA, the Debtor granted to the SBA a lien on substantially all of the Debtor's assets, and the SBA filed a UCC Financing Statement with the New Hampshire Secretary of State on May 7, 2020, at Filing No. 2154, which asserts a security interest in substantially all of the Debtor's assets, including accounts, inventory, deposit accounts, and receivables. The Debtor is not aware of a deposit account control agreement with the SBA. The balance on SBA's loan is presently $487,865.00. Given the current balance of the SBA's loan ($487,865) and the general lien securing that loan, the SBA's security interest covers the Debtor's: (a) deposits in the amount of $28,839.42; (b) accounts receivable in the amount of $69,648.71; (c) other machinery in the amount of $15,000.00; and (d) office furniture in the amount of $1,000.00. In light of Section 552(b) of the Bankruptcy Code, it is unclear whether the SBA's general lien would also extend to and encumber the otherwise available vehicle equity in the estimated amount of $129,904.18 as set forth on the liquidation analysis. If the SBA's lien does extend to those otherwise available assets the recovery for unsecured creditors in a liquidation scenario would be $0.00. If the SBA's lien does not extend to those otherwise available assets, the maximum amount that would be even potentially available to unsecured creditors before reductions associated with the costs and expenses of liquidation would be no more than $129,904. The negative equity in the "GRACEJ" Sprinter Van has not been deducted from the Vehicle Sub-Total as that negative equity would merely be an unsecured claim held by Sumitomo. Review of the liquidation analysis shows that only three vehicles owned by the Debtor have positive equity values, which would almost certainly not be realized in full upon any liquidation of those assets by Customer's Bank or ARBA. Accordingly, the absolute maximum potential recovery for unsecured creditors without factoring in the loss of value on a distressed sale or the costs and expenses of liquidation would be no more than $129,904.18 and the foregoing analysis will be based on that figure. The treatment of Class 6 contemplates the introduction of new value by Michael Campbell, the current owner of existing equity in the Debtor. It is the opinion of the Debtor that Mr. Campbell's contribution of $300,000 satisfies the new value exception to the absolute priority rule and entitles Mr. Campbell to retain his equity interests in the reorganized Debtor. When compared to the only potentially unencumbered assets of the Debtor ($129,904.18), Mr. Campbell proposes to pay into the Debtor a new value sum equal to 231% of its only potentially unencumbered assets. When compared to the unsecured Claims with Mr. Campbell's claims excluded ($2,982,677.28), his $300,000 payment represents 10% of that sum. Under either scenario, Mr. Campbell's new value payment meets and exceeds the thresholds provided by applicable law. In addition, Mr. Campbell proposes to forego any distribution on the Claims he holds directly or indirectly against the Debtor, including on behalf of Leopard Properties LLC and JEI Logistics. Those three Claims total $539,950.06, and when coupled with the new value contribution of $300,000.00, reflect a combined value transferred under the Plan to the Debtor of $839,950.06. Class 6 consists of All General Unsecured Claims, which shall include, without limitation, all Allowed Claims of Mollica, BlueVine, and ODK, all deficiency Unsecured Claims of any Holder of an Allowed Secured Claim, and all Allowed Claims arising from the rejection of a Rejected Contract. This Class will receive a distribution of 9.3% of their allowed claims. In full and final satisfaction of the Claims in Class 6, Michael Campbell, in his capacity as the sole Holder of an Interest in the Debtor, shall make a substantial contribution of new value in the form of a one-time cash payment to the Debtor on the Effective Date in the sum of $300,000.00 (the "Campbell New Value Payment"). The Campbell New Value Payment shall be distributed by the Debtor, Pro Rata, to Holders of Allowed General Unsecured Claims, and such Pro Rata payment shall be the only distribution on account of such Allowed General Unsecured Claims under the Plan. For purposes of Class Six, and as further value to the Holders of Allowed General Unsecured Claims, Michael Campbell and his non debtor Affiliates shall gift to the other Holders of Allowed General Unsecured Claims their Pro Rata distribution from the Campbell New Value Payment on account of the following Claims against the Debtor: (i) $208,344.28 Claim held by Michael Campbell; (ii) $172,676 Claim held by JEI Logistics; and (iii) $158,929.78 Claim held by Leopard Properties LLC (collectively, the "Campbell New Value Gift"). The "feasibility" test requires the Bankruptcy Court to find that Confirmation of the Plan is not likely to be followed by liquidation or the need for further reorganization of the Debtor. The Debtor believes that the projections attached demonstrate that the Debtor is viable, will continue to be viable, and is able to satisfy its obligations under the Plan. Moreover, "Affiliate Costs" that are shown on the Debtor’s three-year Plan projections are anticipated costs for Debtor to secure other companies that Debtor outsources its overflow to or companies in other cities that Debtor's customers travel to. Those cost projections are based upon Debtor's historical costs of the same nature to date. Debtor coordinates travel for its customers in both instances to ensure continuity of service for its valued customers such that the customer's only concern of securing transportation can be met by Debtor with each and every call. A full-text copy of the Amended Disclosure Statement dated March 24, 2026 is available at https://urlcurt.com/u?l=yWdnMw from PacerMonitor.com at no charge. Counsel to the Debtor: Matthew J. Delude, Esq. Adam R. Prescott, Esq. Bernstein, Shur, Sawyer & Nelson, PA 670 N. Commercial Street, Suite 108 P.O. Box 1120 Manchester, NH 03105 Telephone: (603) 623-8700 Email: mdelude@bernsteinshur.com About Grace Limousine LLC Grace Limousine LLC is a Manchester, New Hampshire-based limited liability company founded in 1990 by Ian Campbell, a disabled American veteran. The Debtor sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.H. Case No. 25-10775) on November 3, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Kimberly Bacher handles the case. The Debtor is represented by Matthew J. Delude, Esq. of Bernstein, Shur, Sawyer & Nelson, PA. HAN & JU: Seeks to Hire Larson & Zirzow LLC as Bankruptcy Counsel ----------------------------------------------------------------- Han & Ju, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Nevada to hire Larson & Zirzow, LLC as its bankruptcy counsel. The firm will render these services: (a) prepare on behalf of the Debtor, as debtor in possession, all necessary or appropriate motions, applications, answers, orders, reports, and other papers in connection with the administration of the Debtor's bankruptcy estate; (b) take all necessary or appropriate actions in connection with a plan of reorganization and all related documents, and such further actions as may be required in connection with the administration of the Debtor's estate; (c) take all necessary actions to protect and preserve the Debtor's estate including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, the negotiation of disputes in which the Debtor are involved, and the preparation of objections to claims filed against the Debtor's estate; and (d) perform all other necessary legal services in connection with the prosecution of the Chapter 11 Case. The firm will be paid at these hourly rates: Matthew Zirzow, Principal $650 Zachariah Larson, Principal $650 Benjamin Chambliss, Associate $500 Patricia Huelsman, Paralegal $295 In addition, the firm will seek reimbursement for expenses incurred. The firm received a total pre-petition retainer of $30,000 from the Debtor. Mr. Zirzow disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Matthew C. Zirzow, Esq. Larson & Zirzow, LLC 850 E. Bonneville Ave. Las Vegas, NV 89101 Telephone: (702) 382-1170 Facsimile: (702) 382-1169 Email: mzirzow@lzlawnv.com About Han & Ju, Inc. Han & Ju, Inc., doing business as Kaizen Fusion Roll & Sushi, is a sushi restaurant located in Henderson, Nevada, that serves Japanese cuisine with sushi rolls, sashimi, and other Asian-inspired dishes, and operates an all-you-can-eat dining format. It functions as a casual dining establishment serving local customers with dine-in service at a single location. Han & Ju, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No. 26-11720) on March 19, 2026, listing up to $50,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Kyusik Han as president and director. Judge Natalie M Cox presides over the case. Matthew C. Zirzow, Esq. at LARSON & ZIRZOW, LLC serves as the Debtor's counsel. HANSEN-MUELLER CO: Hires Del Peterson and Associates as Auctioneer ------------------------------------------------------------------ Hansen-Mueller Co. seeks approval from the U.S. Bankruptcy Court for the District of Nebraska to employ Del Peterson and Associates Inc as auctioneer. The auctioneer will conduct a public auction for the sale of certain personal property and equipment located at the Debtor's grain elevator facility in Sioux City, Iowa on April 7, 2026, through DPA Auctions' online auction platform at www.DPAauctions.com. The auctioneer's services will include, but are not limited to: (a) listing the equipment on the Auctioneer's online auction platform; (b) marketing the equipment to potential bidders; (c) conducting the public auction; (d) collecting the purchase price directly from buyers; and (e) remitting net proceeds to the Debtor following completion of the Auction. The firm will receive compensation as follows: a. Commission. The Auctioneer's commission on all sold items shall be 5 percent of the total sale price. b. Listing Fee. The total listing fee shall be $1,000. c. Buyer's Premium. A buyer's premium will be charged to the winning bidder. The Auctioneer will collect the purchase price directly from buyers and remit the net proceeds to the Debtor, less applicable commissions and fees, within 14 banking days following the completion of the Auction. d. No-Transfer Fee. In the event of no-transfer due to reserve not being met or other circumstances, the Debtor agrees to pay the no-transfer fee of 5 percent of the final bid, per item, plus any applicable listing fees, marketing fees, and/or removal fees. The auctioneer is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: Steven Peterson Del Peterson and Associates Inc. 419 W. Judy Drive Fremont, NE 68025 Telephone: (402) 721-4388 Facsimile: (402) 721-4583 Email: customer.service@DPAauctions.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. Hansen-Mueller Co. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Neb. Case No. 25-81226) on November 17, 2025. In its petition, the Debtor reported between $100 million and $500 million in assets and liabilities. Honorable Bankruptcy Judge Thomas L. Saladino handles the case. The Debtor tapped Brian J. Koenig, Esq., Donald L. Swanson, Esq., and Trevor J. Lee, Esq., at Koley Jessen PC, LLO as bankruptcy counsel; Silverman Consulting as restructuring advisor; Michael G. Compton as chief restructuring officer and financial advisor; and Ascendant Consulting Partners, LLC as investment banker. The Debtor's notice, claims and solicitation agent is Epiq Bankruptcy Solutions, LLC. I A P CONSTRUCTION: Cash Collateral Access Extended to April 23 --------------------------------------------------------------- I A P Construction, Inc. received 13th interim approval from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division to use cash collateral until April 23. The Debtor requires access to cash collateral to pay the expenses set forth in its budget, subject to a 10% variance. American Community Bank & Trust may have an interest in the Debtor's assets, including cash collateral. As protection for the use of its cash collateral, the bank will be granted replacement liens on all post-petition property of the Debtor, including cash collateral, with the same validity, priority and extent as its pre-bankruptcy liens. The Debtor's right to use cash collateral will terminate upon entry of a court order directing the cessation of the use of cash collateral; dismissal of the Debtor's Chapter 11 case; or conversion of the case to one under Chapter 7. The next hearing is scheduled for April 22. The order is available at https://shorturl.at/uf9yG from PacerMonitor.com. About I A P Construction I A P Construction, Inc. filed Chapter 11 petition (Bankr. N.D. Ill. Case No. 25-02709) on February 24, 2025, listing up to $1 million in both assets and liabilities. Ian Proce, president of IAP, signed the petition. Judge Deborah L. Thorne oversees the case. The Debtor is represented by: David R. Herzog, Esq. Law Offices of David R Herzog Tel: 312-977-1600 Email: drh@dherzoglaw.com JAZZ PHARMACEUTICALS: Fitch Affirms BB LongTerm IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Jazz Pharmaceuticals Public Limited Company's and its subsidiaries' (Jazz) Long-Term Issuer Default Ratings (IDRs) at 'BB'. The Rating Outlook is Stable. Fitch has also affirmed Jazz's senior secured debt at 'BBB-' with a Recovery Rating of 'RR1' and its senior unsecured debt at 'BB'/'RR4'. The rating affirmation reflects the company's steady revenue growth from its neuroscience and oncology franchises and consistent cash flow from operations (CFO) from an increasingly diversified product portfolio. These strengths are offset by rising competition for key products, product concentration that remains high but is declining, and the potential for debt-financed acquisitions that could limit deleveraging. Key Rating Drivers Consistent Performance: Jazz's multi-year history of launching innovative neuroscience and oncology products supports low- to mid-single-digit organic revenue growth and EBITDA margins of 40% or higher. Jazz's commercial success is the result of effective R&D capabilities that should continue over the near to medium term with its pipeline investments in cannabinoids and oncology. Jazz has demonstrated a disciplined and effective approach to capital allocation, enabling such growth while reducing leverage. Lower leverage should allow incremental debt for external investment. Deleveraging Builds Business Development Capacity: Fitch estimates Jazz's EBITDA leverage to be sustained around 3.5x, assuming it engages in debt-financed acquisitions. This is lower than its peak of 4.7x in 2021 following the GW Pharmaceuticals acquisition but above around 3x as of Dec. 31, 2025. Jazz's financial flexibility has improved materially since the acquisition. Growth, revenue diversification, and debt repayment have increased Jazz's ability to manage debt-funded, corporate-development activities. However, a large, debt-funded acquisition that does not substantially boost EBITDA could strain Jazz's ratings or Outlook. Product Competition Increasing: Amneal Pharmaceuticals, Inc., Ascent Pharmaceuticals, Inc., and potentially other companies have launched generic versions of Xyrem (3.4% of 2025 revenues) posing a significant threat to Jazz's high-sodium oxybate revenue. Xywav's ability to retain Xyrem patients and compete with the generics remains uncertain. This will depend on how providers, patients, and payers value Xywav's lower-sodium benefits. Xywav will also face competition after orphan drug exclusivity (ODE) expires in 2028. Zepzelca also faces competition from products like Amgen's Imdelltra, which has shown stronger efficacy in clinical trials. Revenue Diversification and Pipeline Progress: Jazz has a growing base of diversified product revenues. Fitch assumes growth in existing products will offset the losses from competition. For example, Epidiolex reached blockbuster status in 2025. Fitch expects Epidiolex to continue growing in the high-single digits and Xywav to remain the top branded narcolepsy treatment. Ziihera has significant growth potential, with over $2 billion in projected peak sales. Fitch expects the approval and launch of Modeyso, acquired through Chimerix, to reach peak sales of $500 million. Tariff and Tax Risks: Potential U.S. tariff or tax law changes for pharmaceutical manufacturers could significantly impact Jazz. Such changes aim to boost U.S. production but may increase costs, worsen shortages, and elevate prices. Jazz's reliance on a global supply chain could lead to higher costs for imported ingredients, affecting pricing and profitability. Fitch's forecast does not account for such changes, but their medium-term effects, if sustained, could have adverse rating implications. Peer Analysis Fitch compares Jazz's credit profile to other 'BB' category biopharmaceutical companies, including Teva Pharmaceutical Industries Limited ('BB+'/Stable), BioMarin Pharmaceutical Inc. ('BB+'(EXP)/Stable), and Genmab A/S ('BB'/Stable). Jazz's relative rating reflects its smaller scale and weaker diversification than Teva and Fitch's expectation for higher run-rate leverage than BioMarin and Genmab, with the latter having a more concentrated portfolio. Fitch’s Key Rating-Case Assumptions - Revenue growth rate of approximately 5% CAGR over the 2026-2029 forecast period, inclusive of loss of revenues from the oxybate franchise and Zepzelca; organic growth driven primarily by increased sales of Epidiolex, Modeyso, and Ziihera; - Hikma royalties continue until 2029; Xyrem revenues decline rapidly over the forecast period; - Adjusted gross margins of approximately 88% and adjusted EBITDA margins improving from 43% to 44% over the forecast period; - Non-GAAP effective tax rate of approximately 13.5%; - Effective interest expense changes with the movement in SOFR, approximating 4.0% over the forecast period; - Changes in net working capital as a percentage of revenue represents a modest use of CFO over the forecast period; - Capex, including assumed in-process research and development (IPR&D) investment, is approximately 5.0% of revenue over the forecast period; 2026 reflects milestone payment for approval of Ziihera for GEA; - Acquisitions of USD8.0 billion over the forecast period funded primarily with available cash, increases in borrowings, and FCF, with EBITDA leverage maintained around 3.5x; These acquisitions are assumed to be products in development stage, so no contribution is assumed; - Debt maturities are assumed to be refinanced; - No common dividends are assumed; - Share repurchases of USD300 million per year over the forecast period. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bbb-, Lower), Sector Characteristics (aa, Lower), Market and Competitive Positioning (bb+, Moderate), Diversification and Asset Quality (bb-, Higher), Company Operational Characteristics (bb+, Moderate), Profitability (aa, Lower), Financial Structure (a-, Moderate), and Financial Flexibility (bbb-, Moderate). - The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'a+' results in no adjustment. - The calibration adjustment applies and results in an adjustment of -1 notch(es). - The SCP is 'bb'. Recovery Analysis Fitch's Recovery Ratings for issuers rated 'BB+' to 'BB-' are based on generic recovery assumptions. Fitch has treated Jazz's senior secured debt as Category 1 first lien because Fitch assumes most of its collateral value is in the U.S. even though many of the borrowers are outside of the U.S. This is due to its revenue generation and results in the secured debt being notched up to 'BBB-', two notches above the Long-Term IDR. The unsecured debt is rated in line with the IDR at 'BB'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Loss of oxybate revenue without offsetting growth in other products; - A large debt-funded transaction that causes total EBITDA leverage to be sustained above 4.5x and (CFO-capex)/debt with equity credit less than 5%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Organic revenue growth from existing products of 4%-5% over the forecast period, combined with a reduction in revenue concentration risk from top products; - Total EBITDA leverage sustained below 3.5x and (CFO-capex)/debt with equity credit greater than 10%. Liquidity and Debt Structure Jazz's primary sources of liquidity include $2.4 billion of cash and equivalents on Dec. 31, 2025, full availability under its $885 million RCF and retained cash flow from operations after capex, which Fitch estimates was $1.3 billion in 2025. These sources are sufficient to handle upcoming debt maturities and term loan amortization. Fitch notes Jazz's debt maturities are relatively concentrated in 2026-2030. Issuer Profile Jazz is a global biopharmaceutical company that develops medicines for people with serious diseases, often with limited or no therapeutic options. It has a diverse portfolio of marketed medicines and novel product candidates, from early to late-stage development. Summary of Financial Adjustments Fitch adjusted historical EBITDA to add back stock-based compensation, transaction and integration-related expenses, restructuring costs, impairment charges, acquired in-process research and development charges, the fair value step-up related to acquisition inventory, and finance lease costs. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Jazz. ESG Considerations Jazz Pharmaceuticals Public Limited Company has an ESG Relevance Score of '4' for Exposure to Social Impacts due to pressure to contain healthcare spending, a highly sensitive political environment, and social pressure to contain costs or restrict pricing, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Jazz Investments I Ltd. senior unsecured LT BB Affirmed RR4 BB Jazz Financing Lux S.a r.l. senior secured LT BBB- Affirmed RR1 BBB- Jazz Pharmaceuticals Public Limited Company LT IDR BB Affirmed BB senior secured LT BBB- Affirmed RR1 BBB- Jazz Pharmaceuticals, Inc. LT IDR BB Affirmed BB senior secured LT BBB- Affirmed RR1 BBB- Jazz Pharmaceuticals UK Holdings Limited LT IDR BB Affirmed BB senior secured LT BBB- Affirmed RR1 BBB- Jazz Securities DAC senior secured LT BBB- Affirmed RR1 BBB- Jazz Financing Holdings Limited LT IDR BB Affirmed BB senior secured LT BBB- Affirmed RR1 BBB- Jazz Pharmaceuticals Ireland Limited LT IDR BB Affirmed BB senior secured LT BBB- Affirmed RR1 BBB- Jazz Financing I DAC LT IDR BB Affirmed BB senior secured LT BBB- Affirmed RR1 BBB- JUMPSTART COMMUNICATIONS: Case Summary & 18 Unsecured Creditors --------------------------------------------------------------- Debtor: Jumpstart Communications LLC 15924 Twin Eagles CV Huntertown IN 46748 Business Description: Jumpstart Communications LLC, a certified woman-owned small business, provides outside plant construction services, including aerial, underground and splicing work, for broadband network builds and maintenance. The company supports telecom operators and contractors across complex urban projects, long-haul routes and rural broadband expansions. Chapter 11 Petition Date: March 31, 2026 Court: United States Bankruptcy Court Northern District of Indiana Case No.: 26-10364 Debtor's Counsel: Amy Elizabeth Gillen, Esq. LAW OFFICE OF AMY E. GILLEN 163 Ridgeview Drive Valpariaso IN 46385 Tel: 219-241-4791 Email: gillenlaw@aol.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Erin O'Donnell as owner. A full-text copy of the petition, which includes a list of the Debtor's 18 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/WEX2JSY/Jumpstart_Communications_LLC__innbke-26-10364__0001.0.pdf?mcid=tGE4TAMA K & M AMUSEMENT: Hires Kessler Realty as Real Estate Broker ----------------------------------------------------------- K & M Amusement Center, LLC seeks approval from the U.S. Bankruptcy Court for the District of Massachusetts to employ Marc Kessler of Kessler Realty as broker. The broker will facilitate the sale of the Debtor's real property in Middlesex County, Massachusetts. The broker will receive compensation equal to 4 percent of the selling price. Marc Kessler, a broker at Kessler Realty, assured the court that his firm is a "disinterested person" within the meaning of 11 U.S.C. 101(14). The firm can be reached through: Marc Kessler Kessler Realty 10 Aurora Lane Salem, MA 01970 About K & M Amusement Center, LLC K & M Amusement Center, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case No. 26-40200) on February 25, 2026. At the time of the filing, Debtor had estimated assets of between $1,000,001 to $10 million and liabilities of between $1,000,001 to $10 million. Douglas J. Beaton serves as Debtor's legal counsel. LBM ACQUISITION: Moody's Cuts CFR to Caa1, Alters Outlook to Stable ------------------------------------------------------------------- Moody's Ratings downgraded LBM Acquisition, LLC's (dba US LBM) corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD, the ratings on the company's senior secured first lien term loan due 2031 and senior secured notes due 2031 to Caa1 from B3 and the senior unsecured notes due 2029 to Caa3 from Caa2. The senior secured first lien term loan and senior secured notes are pari passu with each other. At the same time, Moody's changed the outlook to stable from negative. The downgrade to Caa1 reflects US LBM's very high leverage and weak interest coverage, due to continued soft market conditions and amplified by previous debt-financed dividends and bolt-on acquisitions. Weak consumer confidence has been negatively impacting domestic residential construction, the main driver of US LBM's revenue. Since the peak in 2022, US LBM has lost $4 billion in annual revenue while only minimally reducing its debt load. "The Caa1 reflects Moody's expectations that deleveraging from earnings growth to significantly below 7x debt/EBITDA will be difficult in the next 12 – 18 months as market conditions show limited prospects for improvement in 2026." says Peter Doyle, a Moody's Ratings VP-Senior Analyst. "However, revolver availability and no significant near-term maturities support the stable outlook," added Doyle. RATINGS RATIONALE US LBM's Caa1 CFR reflects the company's weakened profitability and limited prospects for leverage and coverage metrics to recover in the next 12-18 months. Sustained improvement in operating performance and volume growth are critical for leverage reduction. Moody's expects leverage to remain in the range of 10x – 11x debt/EBITDA over the next 12 – 18 months and interest coverage nearing 1.5x EBITDA/interest expense by late 2027. Moody's recognizes management's efforts to adjust its cost structure to lower levels of demand. Moody's projects EBITDA margin of around 7-8% through 2027, absent a material turnaround in the market. US LBM operates in the competitive distribution sector, with some reliance on commodity-like products, which tend to be more easily available from other distributors. These factors in addition to soft end markets make significant improvements in operating performance difficult to achieve. US LBM's highly leveraged capital structure is mitigated by availability under its $1.75 billion asset-based revolving credit facility (RCF) due June 2029, of which $100 million expire in May 2027. The RCF is governed by a borrowing base calculation that fluctuates with business seasonality. US LBM reported available borrowing capacity as of December 31, 2025 of $688 million after taking into account about $120 million in borrowings and $73 million in letter of credit issuances. US LBM has no material debt maturities until early 2029. The stable outlook reflects Moody's expectations that the company will maintain sufficient availability under its RCF. No significant maturities over the next three years and favorable long-term fundamentals of the US homebuilding industry further support the stable outlook. Reflecting the downgrade of US LBM's CFR to Caa1, Moody's adjusted the financial policy rating factor in the company's scorecard to Caa from B. Moody's also changed US LBM's credit impact score (CIS) to CIS-5 from CIS-4, indicating the rating is lower than it would have been if ESG risk exposures did not exist. US LBM has high financial risk from weak credit metrics due to the challenges of executing its operational plan while facing softness in residential construction and intense competition. The score change also reflects underperformance relative to Moody's previous expectations. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if operating performance improves, resulting in debt/EBITDA sustained below 7x and EBITDA/interest expense of around 2x. Maintenance of adequate liquidity would also support an upgrade. A ratings downgrade could occur if liquidity deteriorates, including increased reliance on the RCF, or there is further erosion in operating performance. Repurchasing of debt at significant discount could result in a distressed exchange. US LBM, headquartered in Atlanta, Georgia, is a North American distributor of building products. Bain Capital Private Equity, LP and Platinum Equity, through their respective affiliates, are the primary owners of US LBM, with management holding a minority stake. US LBM's revenue for 2025 was $6.8 billion. The principal methodology used in these ratings was Distribution and Supply Chain Services published in November 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. LENMAR ROBERTSON: Case Summary & Two Unsecured Creditors -------------------------------------------------------- Debtor: Lenmar Robertson, LLC 493 S. Robertson Blvd. Beverly Hills, CA 90211 Business Description: Lenmar Robertson, LLC holds a commercial property at 493 S. Robertson Blvd. in Beverly Hills, CA, valued at $5 million. Chapter 11 Petition Date: March 31, 2026 Court: United States Bankruptcy Court Central District of California Case No.: 26-13080 Judge: Hon. Sheri Bluebond Debtor's Counsel: Thomas B. Ure, Esq. URE LAW FIRM 8280 Florence Avenue, Suite 200 Downey, CA 90240 Tel: 213-202-6070 Fax: 213-202-6075 Email: tom@urelawfirm.com Total Assets: $5,001,441 Total Liabilities: $5,818,108 The petition was signed by Marvi Markowitz as managing 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/2PNMDTY/Lenmar_Robertson_LLC__cacbke-26-13080__0001.0.pdf?mcid=tGE4TAMA LGI HOMES: S&P Lowers ICR to 'B-' on Slower Demand, Outlook Neg. ---------------------------------------------------------------- S&P Global Ratings lowered the issuer credit rating on Woodlands, Tx.-based homebuilder LGI Homes Inc. (LGIH) to 'B-' from 'B+'. At the same time, S&P lowered its issue-level rating to 'B' from 'BB-'. The recovery rating remains '2'. S&P said, "The negative outlook reflects our expectation for leverage to remain elevated above 8.0x through the end of 2026, with EBITDA interest coverage of approximately 1.5x. "We expect leverage metrics to be pressured over the next twelve months, before LGI deleverages through debt repayment toward in the back half of 2026. 2025 leverage ended the year well above our previous downside threshold of 5x and EBITDA to interest coverage of below 2x. We expect 2026 revenues to improve in the mid-single-digit percent area, from $1.7 billion in 2025, due to a mid-single-digit percent increase in delivered homes relative to the same period last year. We forecast LGIH's closings per community per month wmill remain approximately 2.8x, down from our previous forecast of 3.2x for 2026. This is well below historical averages of approximately 6x per month over the last 10 years. The overall pressure on closings comes from general competition in key markets, macroeconomic challenges, and a lack of consumer confidence. The continued challenges affecting the industry are principally hindering the entry-level focused homebuilders, as first-time entry-level home buyers are more sensitive to interest rates, credit score deterioration, and inflation. For example, LGIH's cancellation rates in 2025 jumped above 30%, which is a historical high, as these consumers are showing to be the most pressured buyer segment. "In addition to diseconomies of scale due to lower closings, the company's margins contracted due to elevated incentives to meet affordability constraints, flat average selling prices, and higher land and labor costs, though partially offset by material savings and efficient cycle times. Albeit its self-developed land pipeline continues to provide structural margin support, a key differentiator from land-light peers. We expect S&P Global Ratings-adjusted gross margins to remain at 23%-24% in 2026 from 24.4% in 2025. Although, the cumulative basis point erosion over the last two years limits its cushion for additional macroeconomic setbacks, creating downside risk if challenges for homebuilding materials exceed our base case. "The overall forward credit trajectory is contingent on margin stabilization, volume improvement, cancellation rate normalization, and successful management of the inventory/leverage balance. We now expect EBITDA of $160 million-$175 million in 2026, with debt to EBITDA of 8.0x-9.5x and EBITDA interest coverage of about 1.5x through 2026. Offsetting further credit metric deterioration is the company's focus on repaying its outstanding revolving credit facility balance of $527.6 million (as of Dec. 31, 2025), rather than share repurchases or equity-like distributions. If it tempers overall land spend to match its current closings pace, we believe it can generate positive cash flow from operations and direct excess cash toward revolving debt repayment. Still, we expect credit metrics will remain elevated for the current rating for the next six to 12 months. LGIH's cushion toward any further downside remains limited. S&P expects EBITDA interest coverage to be approximately 1.5x by year-end 2026. The company's tightest covenant has a minimum requirement of 1.15x until Dec. 31, 2026, then steps up to 1.5x thereafter. At a minimum, the probability of a U.S. recession over the next 12 months has increased. S&P Global economists have increased their estimates of recession risk to 30%, up from about 20% before the war in the Middle East. The economy now appears at risk of losing several of the engines that were supporting expansion heading into 2026. While modest declines in mortgage rates (60-70 bps in the last six months to 6.2% on average in mid-March) have delivered a tentative lift to home sales, S&P expects financing costs to remain elevated, averaging 5.5%-6.0% over the next couple of years. This limits upside to demand and makes the industry vulnerable to any renewed rate or income shock. As such, the overall impact to builders and consumers is currently difficult to quantify. Offsetting further downward pressure is the company's adequate liquidity position and time to maturity, with $273.6 million available on its $1.1825 billion unsecured revolver. Approximately 82% of commitments mature on April 28, 2029, and the remaining 18% mature on April 28, 2028, along with its $400 million senior unsecured notes due Dec. 15, 2028. S&P believes the interest coverage, liquidity, and time to maturity are commensurate with the rating level heading into the selling season. However, with LGIH's interest burden along with current forecasted EBITDA, this presents a limited cushion at the current rating for 2026 if the selling season does not result in line with its forecast, particularly given the company has historically relied heavily on its revolving credit facility for land spending and investments in continuing operations. LGIH could face challenges until consumer confidence rebounds. As a midsize, entry-level focused builder, its profitability stems from quick inventory turns, high closings per community per month, and its ability to self-develop lots but the current environment is not allowing LGIH to take advantage of efficiencies. It could face challenges until consumer confidence rebounds, allowing it to scale while maintaining cost controls and competitive overhead expenses. The company strategically self-develops the majority of its own land, does not currently utilize institutional land bankers, and has a heavy product offering focus toward entry-level buyers. LGIH is well diversified geographically, with a presence across the U.S. as it operates in 36 markets in 21 states. The company markets itself as a 100% move-in ready builder and has an established wholesale business called LGI Living that opportunistically sells units to single-family rental investors to further diversify its asset and customer base. It has a larger revenue base and more closings than our other single 'B'-rated homebuilders such as BZH (B/Negative/--), Adams Homes Inc (B/Stable/--), and Empire Communities (B-/Negative/--). Still, 2025 leverage was higher than those three companies, and only one single B homebuilders we rate generated more homebuilding revenue than LGIH: Hovnanian Enterprises (B+/Stable/--). S&P said, "The negative outlook reflects our expectation that leverage will remain elevated over the next six to 12 months as macroeconomic challenges, poor consumer confidence, and affordability constraints pressure margins. This creates a more challenging market for rapid deleveraging, and we project S&P Global Ratings-adjusted debt to EBITDA will remain elevated at well above 8x and EBITDA interest coverage of below 1.5x." S&P could lower the rating over the next 12 months if: -- LGIH's operations yield insufficient returns to support its capital structure, with leverage failing to improve below 10x; LGIH's interest coverage ratio declines well below 1.5x, or -- If operating performance underperforms our expectations, such that debt and liquidity do not decline as anticipated over time as maturities grow nearer. S&P could revise the outlook back to stable over the next 12 months if the macroeconomic environment stabilizes or management executes its plan such that refinancing risk and liquidity concerns are ameliorated. This could occur if home closing volumes outperform its forecast, leading to EBITDA growth that sustainably drives leverage below 8x and S&P Global Ratings-adjusted EBITDA interest above 1.5x. MAGELLAN INTERNATIONAL: Moody's Lowers Revenue Bond Rating to B2 ---------------------------------------------------------------- Moody's Ratings has downgraded to B2 from Ba3 the revenue bond rating for Magellan International School, TX. The outlook has been revised to negative from stable. Roughly $52 million of debt was outstanding as of June 30, 2025. The downgrade to B2 reflects Magellan's ongoing challenge to stabilize operating performance and cash reserves. Donor support has consistently failed to meet expectations and cost overruns associated with past campus development projects have led to a material deterioration of cash. Though enrollment is fairly stable, fiscal 2025 operating performance was insufficient to support sum sufficient debt service coverage. Materially weakened liquidity and inability to achieve structurally balanced operations, especially in light of very high leverage, reflect a weakness in financial policy and financial management, which are governance considerations in Moody's ESG framework and key drivers of this rating action. RATINGS RATIONALE The B2 rating reflects Magellan's continued challenge to meet enrollment targets, despite a good student market in the competitive Austin, TX landscape as an IB Spanish immersion school. Magellan's liquidity profile has historically been fair relative to operations, though dipped considerably in fiscal 2025. While somewhat attributable to volatility in the timing of cash receipts, a failure to meet 60 days cash on hand as of the fiscal 2025 year end resulted in Magellan securing a management consultant. Management reports that cash has improved to $3.6 million, or 79 days cash on hand, as of March 2026. The school's leverage is considerable, and continued enrollment growth is needed to support debt service plus operating lease payments. Fiscal 2026 revenues are supported by enrollment stabilization, offset by the loss of a material donation, which necessitated a hefty write down of gift receivables. Severely outsized leverage, coupled with enrollment and operating performance that has fallen short of expectations, will continue to be key credit considerations. RATING OUTLOOK The negative outlook reflects Moody's expectations of continued thin financial performance, with operating margins that will trend at or just below break-even. Future reviews will consider Magellan's ability to enroll high school students through grade 12, improve retention, strengthen operating margins, and at least meet its 1.1x debt service coverage covenant. Restoration of cash, with headroom over the 60 day liquidity covenant, will be key to stabilizing the credit profile. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING -- Enrollment and revenue growth that generates cash flows necessary to cover annual debt service coverage well in excess of the 1.1x covenant -- Strengthened fiscal alignment with at least breakeven operating performance -- Significant increases to cash reserves -- Capital campaign receipts in excess of stated goals used to bolster cash and/or reduce the debt load FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING -- Declines in enrollment and corresponding student generated charges; inability to generate cash flows ensuring at least 1.1x annual debt service coverage -- Inability to maintain cash reserves in excess of the 60 days liquidity covenant -- Capital campaign receipts below stated goals -- Additional borrowing further leveraging operating revenues PROFILE The Magellan International School in Austin, TX is a private, non-profit institution currently offering an IB education in a Spanish immersion setting for PreK to 10th grade. Management plans to expand offerings through grade 12 in the next few years. Fiscal 2025 operating revenues totaled approximately $14.2 million, the school enrolled 637 students as of Fall 2025. METHODOLOGY The principal methodology used in this rating was Nonprofit Organizations (Other Than Healthcare and Higher Education) published in August 2024. MANNINGTON MILLS: Moody's Alters Outlook on 'B2' CFR to Positive ---------------------------------------------------------------- Moody's Ratings affirmed Mannington Mills, Inc.'s (Mannington) B2 corporate family rating, B2-PD probability of default rating, and B3 rating on its $215 million outstanding senior secured term loan B due 2032. The outlook has been changed to positive from stable. The rating action recognizes the continued improvements in Mannington's operating performance and supply chain optimization, with Moody's expectations that leverage will likely remain below 2.5x debt/EBITDA through 2026. The improved operating performance is also a sign that the company has regained its market position following supply chain disruptions and compliance issues with the Uyghur Forced Labor Protection Act (UFLPA), affecting its Chinese sourced Luxury Vinyl Tile (LVT) in 2023, and resulting in weaker credit metrics in 2023. RATINGS RATIONALE Mannington's B2 corporate family rating reflects the company's robust operating performance and completed supply chain conversion, supporting improvements in its credit metrics for the last two years. Mannington is exposed to the US non-residential construction markets and the discretionary nature of its product offering. However, backlogs in the non-residential construction end market remain solid and help to offset softness in the residential construction market, accounting for the remaining 40% of Mannington's end markets served. Moody's expects that the planned exit of its lower margin carpet business in Q3 2025 will support further EBITDA margin improvements in 2026, which should result in leverage staying below 2.5x in 2026 and modest positive free cash flow. Uncertainty remains around the company's long-term financial policy including long-term leverage target and appetite for growth through acquisitions. The company's small and limited product portfolio consisting of only flooring products constrain the rating and make the company's operating performance more susceptible to shift in demands or supply chain disruptions like in 2023. Stronger credit metrics and a lower leverage however, mitigate that susceptibility. Moody's expects Mannington to maintain good liquidity over the next 12-18 months and generate positive free cash flow of around $60 million and $20 million in 2025 and 2026, respectively. Moody's expects the company to utilize its $150 million ABL due 2029 to support working capital needs. As of September 2025, Mannington had $15 million drawn on its ABL and about $135 million available. The B3 rating assigned to the senior secured term loan maturing 2032 is one notch below the B2 CFR. The term loan has a first lien on substantially all noncurrent assets and a second lien on assets securing the company's revolving credit facility (ABL priority collateral). The positive outlook reflects potential upward rating pressure over the next 12-18 months if Mannington Mills maintains a solid operating performance leading to credit metrics commensurate with a higher rating, notably adjusted debt/EBITDA remaining below 4.5x. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings upgrade would require consistency and stability in credit metrics, including debt to EBITDA below 4.5x. An upgrade would also require end market stability to ensure limited volatility in operating results. Finally, an upgrade would require maintenance of conservative financial policies and good liquidity. The ratings could be downgraded if credit metrics experience sustained weakness, including debt to EBITDA above 5.5x and EBITA to interest coverage below 2.0x. A downgrade would also result from significant debt-financed acquisitions or shareholder friendly actions affecting the company's liquidity profile. The principal methodology used in these ratings was Manufacturing published in September 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. Mannington Mills, Inc., headquartered in Salem, New Jersey, is a manufacturer of flooring products used in both commercial and residential construction end markets throughout North America and Europe. Keith Campbell, a current Board member, owns a significant majority of Mannington and different family members hold minority interests. MASTERBRAND INC: Moody's Cuts CFR to 'Ba3', Outlook Stable ---------------------------------------------------------- Moody's Ratings downgraded MasterBrand, Inc.'s (MasterBrand) corporate family rating to Ba3 from Ba2, probability of default rating to Ba3-PD from Ba2-PD, and the rating on the $700 million senior unsecured notes due 2032 to B1 from Ba3. The speculative grade liquidity rating (SGL) was downgraded to SGL-3 from SGL-2. The outlook is stable. The downgrade to Ba3 reflects the continued deterioration in MasterBrand's credit metrics and limited prospects for material improvements in 2026 given soft repair & remodeling demand, in particular for discretionary products such as cabinets, which has eroded profit margins. Moody's views the pending merger with American Woodmark Corporation as credit positive because it will improve MasterBrand's scale and market position. The merger is expected to close in the first half of 2026 and was announced in August 2025. The stable outlook reflects Moody's expectations that the company will be able to improve credit metrics over the next 12-18 months with the merger of American Woodmark and assuming at least stable market conditions in 2027. Moody's expects that MasterBrand will continue to generate positive free cash flow and maintain adequate liquidity. RATINGS RATIONALE MasterBrand's Ba3 CFR is constrained by the deterioration in its operating performance given soft repair and remodeling demand, in particular for discretionary products like cabinets. Prospects for a market recovery before 2027 are limited at this stage and will depend on improving consumer confidence and stronger economic growth. On a pro forma basis, including the acquisition of American Woodmark, Moody's expects debt/EBITDA to be around 4.8x in 2026 and free cash flow generation near $90 million. Moody's expects leverage to improve to below 4.5x by 2027 without factoring in any synergies from the American Woodmark merger. As of December 31, 2025 MasterBrand's leverage was high at 5x debt/EBITDA. Furthermore, Moody's forecasts EBITA margin to be 3.9% and 4.1% in 2026 and 2027, respectively, which is down from 4.6% in 2025 and 10% in 2024, due to deteriorating market conditions. While there is execution risk in the integration of American Woodmark, the company will have increased scale and market presence in the fragmented North American cabinet market. A majority of the company's exposure will be to the stock cabinet market, which Moody's expects to drive demand in the coming years due to affordability pressures on consumers. The B1 rating on MasterBrand's senior unsecured notes is one notch below the Ba3 corporate family rating due to its subordination to the company's secured credit facility. The company's debt capital consists of $700 million of senior unsecured notes due 2032 and a $750 million senior secured revolving credit facility due 2029. The Speculative Grade Liquidity Rating of SGL-3 reflects Moody's expectations that the company will maintain adequate liquidity over the next 12 to 18 months. Covenant headroom is limited. Liquidity is supported by $183 million of cash on balance sheet at December 31, 2025 and $450 million of availability under the company's $750 million revolving credit facility expiring in June 2029 (unrated). FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Due to MasterBrand's exposure to cyclical end markets and concentration in a highly discretionary product type, Moody's expects the company to maintain stronger credit metrics than similarly rated manufacturing peers. A ratings upgrade would require maintenance of good liquidity, consistent credit metrics, including debt/EBITDA comfortably below 3.75x, and a demonstrated track record of adherence to a conservative financial policy. Finally, a ratings upgrade would require material positive free cash generation and reflect a more diversified revenue stream that reduces the cyclicality of the business. The ratings could be downgraded if debt/EBITDA is sustained above 4.75x or if adjusted EBITA margin is sustained below 5%. The ratings could also be downgraded if the company experiences a deterioration in competitive position or liquidity. The principal methodology used in these ratings was Manufacturing published in September 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. MasterBrand, Inc. is headquartered in Beachwood, Ohio. The company is leading manufacturer of residential cabinets in North America, and is exposed to both the new residential as well as repair and remodel end markets. MasterBrand's revenue for the 2025 fiscal year end was $2.7 billion. MIAMI JEWISH: Fitch Alters Outlook on 'BB+' IDR to Negative ----------------------------------------------------------- Fitch Ratings has revised Miami Jewish Health System and subsidiaries, FL's (MJHS) Rating Outlook to Negative from Stable. Fitch has also affirmed MJHS's Issuer Default Rating (IDR) at 'BB+' and its series 2017 revenue bonds issued by the city of Miami Health Facilities Authority on behalf of MJHS at 'BB+'. Entity/Debt Rating Prior ----------- ------ ----- Miami Jewish Health Systems and Subsidiaries (FL) LT IDR BB+ Affirmed BB+ Miami Jewish Health Systems and Subsidiaries (FL) /General Revenues/1 LT LT BB+ Affirmed BB+ The rating affirmation reflects MJHS's improved operating performance and Fitch's expectation for continued near-term stability, supported by Program of All Inclusive Care for the Elderly (PACE) growth and improved skilled nursing performance. The rating remains constrained by high government reimbursement exposure and limited financial flexibility. The Negative Outlook reflects Fitch's expectation that MJHS will pursue an entrance-fee independent living expansion within the Outlook horizon that is beyond the scope of previous consideration. Fitch expects the project to require a large debt issuance that may introduce execution risk and weaken cash-to-adjusted debt. This could erode rating headroom despite improved operations partly due to a lack of material net entrance fees. Fitch will monitor the scope, timing, and funding plan, including pre-sales pace and upfront cash generation, as the project becomes more defined. SECURITY The bonds are secured by a pledge of gross revenues and a mortgage on certain property of the OG, which includes MJHS, the Florida PACE Centers, and the Miami Jewish Health Foundation, Inc. KEY RATING DRIVERS Revenue Defensibility - 'bb' High Government Exposure Revenue defensibility is constrained by a limited pricing flexibility as government payors account for over 80% of revenues. This reflects the large PACE program and skilled nursing facility (SNF) service lines. PACE growth supports volume stability, including new sites in Kendall and northern Broward County. Fitch expects continued enrollment growth through new PACE center locations to support revenue, but rate-setting limits constrain the assessment. The continuum includes independent living, assisted living, memory care, skilled nursing, and a small acute care hospital that largely supports campus residents and PACE participants. Demand characteristics across the continuum are mixed. Independent living occupancy is weaker than PACE enrollment. Independent living represents about 16% of total units and about 6% of revenue, which limits exposure to the segment. Maintenance and continued enrollment growth in the PACE program are central to revenue generation. Management continues to right-size skilled nursing beds, which Fitch expects will better align capacity with demand and support utilization. Service area characteristics are supportive but not uniformly strong. Population growth in Miami City and Miami-Dade County supports long-term demand for senior services. Competition from assisted living and skilled nursing providers in the immediate service area is steady. Demographics are mixed, with good growth characteristics offset by income levels below state averages, which can pressure private-pay demand. Operating Risk - 'bb' Improvement Taking Hold MJHS's operating profile remains consistent with Fitch's weak operating risk assessment. Performance has improved from earlier lows. The operating margin remained negative through fiscal 2025 but improved meaningfully. Results for the first six months of fiscal 2026 were positive. The operating ratio has been steadily declining from a high of 108.5% in 2021 to its lowest point at 96.1% in the first six months of fiscal 2026. The improved trend reflects PACE scale benefits, tighter management of participant care costs, and narrowing skilled nursing losses. Fitch expects management's continued focus on PACE growth and cost control to support more stable margins. Exposure to reimbursement changes remains a key constraint. PACE is the primary earnings driver and requires less capital than many acute care or senior living models. MJHS expects to invest in and expand its PACE program through new PACE centers. The potential ILU expansion may diversify revenue and support improved operations. Fitch will monitor the ILU expansion and assess execution risk. Improved results supported stronger debt service coverage, which Fitch views as important given the limited pricing flexibility and modest scale. Fitch expects continued progress to depend on sustaining PACE enrollment growth, maintaining care cost discipline, and limiting losses in skilled nursing. Operating stability could weaken by deferred reinvestment if capital spending remains well below depreciation for an extended period. Fitch will monitor whether the capital plan is sufficient to maintain facility condition and support the continuum strategy. Financial Profile - 'bb' Liquidity Rebuilding; Modest Cushion for Additional Debt MJHS's current financial profile metrics, which reflect modest scale and reliance on sustained improvement, support the current financial profile assessment. Unrestricted cash and investments improved to about $61 million in fiscal 2025. MJHS has no debt equivalents following pension termination. Covenant compliance improved in fiscal 2025, with days cash on hand above the 90-day requirement and debt service coverage at the 1.2x test. The Negative Outlook reflects Fitch's forward-look that MJHS could add $145 million of new long-term debt tied to the ILU expansion project, which would materially weak post-issuance leverage. Fitch will monitor whether the recent improvement in operating performance and collections will translate into additional liquidity. Fitch will also evaluate the scope, timing, and funding plan for the ILU expansion (and any other capital needs) as the project becomes more defined, including the implications for leverage and the forward-looking scenario. In the base case, liquidity is stable and assumed operating ratio stabilize near fiscal 2025 levels, with capital spending remaining below depreciation. Fitch expects covenant compliance to remain adequate based on current headroom and projected coverage. The stress case incorporates operating pressure and market volatility, producing thinner liquidity and weaker leverage. Financial flexibility is further constrained by the organization's government reimbursement exposure which could slow recovery from stress. Asymmetric Additional Risk Considerations None RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to make the 1.2x debt service coverage covenant; - A sustained operating ratio notably above 100%; - A deterioration in unrestricted liquidity such that cash to adjusted debt falls below 75%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Positive rating action is likely constrained in the outlook period given the potential debt issuance; - Further operational improvement such that the operating ratio is closer to 90%, cash to adjusted debt stabilizes above 120%, and debt service coverage is consistently around 3x inclusive of potential debt issuance. PROFILE Miami Jewish Health System, based in Miami, FL, provides senior housing, skilled nursing, a small acute care hospital, and a large PACE program. The obligated group includes main campus operations and a foundation. Revenue totaled about $165 million in fiscal 2024. Sources of Information In addition to the sources of information identified in Fitch's applicable criteria specified below, this action was informed by information from DIVER by Solve. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. NATIONAL CAMPUS: S&P Affirms 'B' Long-Term Rating on Revenue Bonds ------------------------------------------------------------------ S&P Global Ratings revised the outlook to stable from positive and affirmed its 'B' long-term rating on the California Statewide Communities Development Authority's series 2019 college housing revenue bonds, issued on behalf of National Campus & Community Development Corp. (NCCD)-Hooper Street LLC, Texas (the borrower). The outlook revision reflects uncertainty for the housing project with the announcement of the California College of the Arts (CCA) closure and agreement between CCA and Vanderbilt University (Vanderbilt) whereby CCA will cease operations by the end of the 2026-2027 academic year, after which Vanderbilt intends to become the owner of the campus. S&P said, "We analyzed the project's social and governance factors related to market position and financial performance and view them as neutral in our credit rating analysis. Although environmental risks in California are typically elevated given the state's exposure to extreme weather conditions such as drought, we believe California's robust building codes for educational buildings substantially mitigate any elevated seismic risk. "The outlook for the one-year period is stable. We expect the project will generate revenue sufficient to fund operations and to make timely and full debt service payments in the next year. Furthermore, we expect DSC will be above 1.2x in fiscal 2026. "We could take a negative rating action if overall occupancy and DSC decline significantly, and if management draws on the DSRF for additional future payments. "We could consider a positive rating action if occupancy for fall, spring, and summer are at levels such that annual DSC is consistently at or above 1.2x, along with clarity on the future use of the facility under Vanderbilt's ownership." NIGHTFOOD HOLDINGS: Issues $1.18MM Convertible Note to Mast Hill ---------------------------------------------------------------- Nightfood Holdings, Inc. disclosed in a regulatory filing that it entered into a Securities Purchase Agreement with Mast Hill Fund, L.P., pursuant to which the Company issued a senior secured promissory note in the aggregate principal amount of $1,176,470.58, at an original issue discount of 15%, resulting in net proceeds to the Company of $1,000,000, with certain amounts withheld for transaction-related expenses. In connection with the SPA, the Company also entered into amendments to that certain Security Agreement, dated June 1, 2023, by and between the Company, Nightfood, Inc., MJ Munchies, Inc., Future Hospitality Ventures Holdings Inc., SWC Group, Inc., TechForce Robotics, Inc., Victorville Treasure Holdings, LLC, Treasure Mountain Holdings, LLC, and the Investor, as amended, the Pledge Agreement, dated June 1, 2023, by and between the Company, Mr. Jimmy Chan, and the Investor, as amended, and that certain Guarantee, dated June 1, 2023, by and between Nightfood, Inc., MJ Munchies, Inc., the Company, Future Hospitality Ventures Holdings Inc., SWC Group, Inc., TechForce Robotics, Inc., Victorville Treasure Holdings, LLC, Treasure Mountain Holdings, LLC, and the Investor, as amended to, respectively, incorporate the Note under the Security Agreement, Pledge Agreement and Guarantee. The Note matures 12 months from the issue date and bears interest at a rate of 15% per annum, with additional interest provisions. The Note is convertible at any time on or after the Issue Date into shares of the Company's common stock, par value $0.001 per share, at a conversion price equal to the lesser of: (i) of $0.033 per share or (ii) the Market Price (as defined in the Note), subject to adjustments for stock splits, dividends, and similar corporate actions. Full text copies of The SPA, Note, and the amendments to the Security Agreement, Pledge Agreement, and Guarantee are available at https://tinyurl.com/wzyxdtt3, https://tinyurl.com/5n6jvr8n, https://tinyurl.com/5u3yfapf, https://tinyurl.com/4rcfh8w6, and https://tinyurl.com/3spxarup, respectively. About Nightfood Holdings Tarrytown, N.Y.-based Nightfood Holdings, Inc. is focused on identifying and exploiting explosive market trends within the hospitality, food services, and consumer goods sectors. By leading newly emerging categories and by identifying opportunities in markets undergoing transformational upheaval, the Company's aim is to create upside potential unmatched in more mature markets. Spokane, Wash.-based Fruci & Associates II, PLLC, the Company's auditor since 2024, issued a "going concern" qualification in its report dated October 14, 2025, attached to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2025, citing that the Company has an accumulated deficit, limited available cash resources and does not believe cash on hand will be sufficient to fund operations and growth. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. As of December 31, 2025, the Company had $129,618,033 in total assets, $43,244,437 in total liabilities, and $86,373,596 in total stockholders' equity. NORTH STAR: Committee Taps Dentons US LLP as Counsel ---------------------------------------------------- The Official Committee Of Unsecured Creditors of North Star Health Alliance, Inc. and affiliates seeks approval from the U.S. Bankruptcy Court for the Northern District of New York to employ Dentons US LLP as its counsel. The firm will render these services: a. advise the Committee with respect to its rights, duties, and powers in this case; b. assist and advise the Committee in its consultations with the Debtors relating to the administration of this case; c. assist the Committee in analyzing the claims of the Debtors' creditors, the Debtors' capital structure, and in negotiating with the holders of claims and, if appropriate, equity interests; d. assist the Committee's investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtors and other parties involved with the Debtors and of the operation of the Debtors' business; e. assist the Committee in its analysis of, and negotiations with the Debtors or any other third party concerning matters related to, among other things, the assumption or rejection of certain leases of non-residential real property and executory contracts, asset dispositions, financing transactions, and the terms of a plan of reorganization or liquidation for the Debtors; f. assist and advise the Committee as to its communications, if any, to the general creditor body regarding significant matters in this case; g. represent the Committee at all hearings and other proceedings; h. review, analyze, and advise the Committee with respect to applications, orders, statements of operations, and schedules filed with the Court; i. assist the Committee in preparing pleadings and applications as may be necessary in furtherance of the Committee's interests and objectives; and j. perform such other services as may be required and are deemed to be in the interests of the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code. The firm's hourly rates are: Lauren Macksoud, Partner $995 Andrew C. Helman, Partner $925 Kyle D. Smith, Managing Associate $595 Henry Thomas, Associate $650 David Boydstun, Associate $495 Paraprofessionals $250 - $475 As disclosed in the court filings, Dentons, its partners, counsel and associates are "disinterested persons" within the meaning of section 101(14), as modified by section 1107(b) of the Bankruptcy Code. The firm can be reached through: Andrew C. Helman, Esq. Kyle D. Smith, Esq. DENTONS BINGHAM GREENEBAUM, LLP One City Center, Suite 11100 Portland, ME 04101-6420 Tel: (207) 810-4955 Email: andrew.helman@dentons.com kyle.d.smith@dentons.com About North Star Health Alliance, Inc. The North Star Health Alliance is a collaborative system of healthcare provider organizations in Northern New York, committed to elevating community health and well-being. Members of the NSHA include Carthage Area Hospital, Claxton-Hepburn Medical Center, Claxton-Hepburn Medical Campus (Claxton Campus), North Country Orthopaedic Group, and Meadowbrook Terrace assisted Living Facility. By working together, it aims to enhance accessibility and affordability of care close to home, deliver exceptional medical services, and strengthen the local health infrastructure. The North Star Health Alliance sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 26-60099) on February 10, 2026. In its petition, the Debtor reported between $500,000 and $1 million in both assets and liabilities. Honorable Bankruptcy Judge Wendy A. Kinsella handles the case. The Debtor is represented by Janice Grubin, Esq., and Jeffrey A. Dove, Esq., at Barclay Damon, LLP. NORTH STAR: Committee Taps FTI Consulting as Financial Advisor -------------------------------------------------------------- The official committee of unsecured creditors of North Star Health Alliance, Inc. and affiliates seeks approval from the U.S. Bankruptcy Court for the Northern District of New York to employ FTI Consulting, Inc. as financial advisors. The firm's services include: a. assistance in the review of financial related disclosures required by the Court, including the Schedules of Assets and Liabilities, the Statement of Financial Affairs and Monthly Operating Reports; b. assistance in the preparation of analyses required to assess any proposed Debtor-In-Possession financing or use of cash collateral; c. assistance with the assessment and monitoring of the Debtors' short term cash flow, liquidity, and operating results; d. assistance with the review of the Debtors' proposed employee compensation and benefits programs; e. assistance with the review of the Debtors' potential disposition or liquidation of both core and non-core assets; f. assistance with the review of the Debtors' cost/benefit analysis with respect to the affirmation or rejection of various executory contracts and leases; g. assistance with the review of the Debtors' identification of potential cost savings, including overhead and operating expense reductions and efficiency improvements; h. assistance in the review and monitoring of the asset sale process, including, but not limited to an assessment of the adequacy of the marketing process, completeness of any buyer lists, review and quantifications of any bids; i. assistance with review of any tax issues associated with, but not limited to, claims/stock trading, preservation of net operating losses, refunds due to the Debtors, plans of reorganization, and asset sales; j. assistance in the review of the claims reconciliation and estimation process; k. assistance in the review of other financial information prepared by the Debtors, including, but not limited to, cash flow projections and budgets, business plans, cash receipts and disbursement analysis, asset and liability analysis, and the economic analysis of proposed transactions for which Court approval is sought; l. attendance at meetings and assistance in discussions with the Debtors, potential investors, banks, other secured lenders, the Committee and any other official committees organized in these chapter 11 proceedings, the U.S. Trustee, other Governmental Entities, and other parties in interest and professionals hired by the same, as requested; m. assistance in the review and/or preparation of information and analysis necessary for the confirmation of a plan and related disclosure statement in these chapter 11 proceedings; n. assistance in the evaluation and analysis of avoidance actions, including fraudulent conveyances and preferential transfers; o. assistance in the prosecution of Committee responses/objections to the Debtors' motions, including attendance at depositions and provision of expert reports/testimony on case issues as required by the Committee; and p. render such other general business consulting or such other assistance as the Committee or its counsel may deem necessary that are consistent with the role of a financial advisor and not duplicative of services provided by other professionals in this proceeding. The firm will be paid at these rates: Senior Managing Directors $1,270 to 1,580 Directors / Senior Directors / Managing Directors 940 to 1,195 Consultants/Senior Consultants 535 to 850 Administrative / Paraprofessionals 195 to 395 FTI believes that it is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code and has no connection with the Debtor, its creditors, equity security holders, or other parties in interest. The firm can be reached at: Narendra Ganti FTI Consulting, Inc. 8251 Greensboro Drive McLean, VA 22102 Tel: (571) 830-1029 E-mail: narendra.ganti@fticonsulting.com About North Star Health Alliance, Inc. The North Star Health Alliance is a collaborative system of healthcare provider organizations in Northern New York, committed to elevating community health and well-being. Members of the NSHA include Carthage Area Hospital, Claxton-Hepburn Medical Center, Claxton-Hepburn Medical Campus (Claxton Campus), North Country Orthopaedic Group, and Meadowbrook Terrace assisted Living Facility. By working together, it aims to enhance accessibility and affordability of care close to home, deliver exceptional medical services, and strengthen the local health infrastructure. The North Star Health Alliance sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 26-60099) on February 10, 2026. In its petition, the Debtor reported between $500,000 and $1 million in both assets and liabilities. Honorable Bankruptcy Judge Wendy A. Kinsella handles the case. The Debtor is represented by Janice Grubin, Esq., and Jeffrey A. Dove, Esq., at Barclay Damon, LLP. OCEANSIDE COLLEGIATE: Moody's Affirms 'Ba1' Revenue Bond Rating --------------------------------------------------------------- Moody's Ratings has revised Oceanside Collegiate Academy, SC's outlook to stable from negative and has affirmed its Ba1 revenue bond rating. For fiscal 2025 (June 30 year-end), the academy has $18 million of debt outstanding. The outlook revision to stable reflects the academy's successful transfer of its charter to the South Carolina Public Charter School District, reducing uncertainty related to charter authorization and oversight. RATINGS RATIONALE The Ba1 rating reflects the academy's small scale and moderate leverage, strong competitive profile and solid operating liquidity. The academy's liquidity of 300 monthly days cash on hand provides a good financial cushion, mitigating risks around its relatively modest scale. Opereating performance will remain sound in fiscal 2026, with year-to-date performance above budget and forecasted annual debt service coverage is above 1.5x. Spendable cash and investments to debt covered a satisfactory 33% of outstanding debt in fiscal 2025. The academy's strong competitive profile is anchored by a favorable academic performance relative to the local school district. Student demand is solid, reflected in student retention of 88% in the current school year. Governance is a key rating driver. The academy has successfully transferred its charter to the South Carolina Public Charter School District for the 2026-27 school year, with no material effect on enrollment or financial performance. The completed transition reduces prior uncertainty related to authorizer oversight and supports expectations for stable operations. RATING OUTLOOK The stable outlook reflects the successful transfer of the academy's charter to a new authorizer, supporting continuity in oversight and operations. The stable outlook also reflects the likelihood that enrollment demand and financial performance will remain consistent with current levels under the new authorizing framework. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS -- Expanded scale of operations with operating revenue above $15 million -- Material reduction in leverage, with spendable cash and investment to debt above 45% FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS -- Material reduction in liquidity to below 200 days cash on hand -- Material increase in financial leverage PROFILE Oceanside Collegiate Academy was founded in 2017 and is located in the Charleston metro area. The academy serves students in grades 9-12, following an honors curriculum in 9th and 10th grade and a dual-enrollment curriculum in 11th and 12th grade. In addition, the academy puts significant focus on student athletics. Oceanside is managed by Pinnacle Charter Management Group, an educational management organization, pursuant to a management agreement through June 30, 2036. In fiscal 2025, the academy reported $8 million in operating revenue and enrolled approximately 625 students. METHODOLOGY The principal methodology used in these ratings was US Charter Schools published in April 2024. OPTION CARE: Moody's Affirms 'Ba3' CFR & Alters Outlook to Positive ------------------------------------------------------------------- Moody's Ratings affirmed the ratings of Option Care Health, Inc ("Option Care"), including the Ba3 Corporate Family Rating, Ba3-PD Probability of Default Rating, Ba2 senior secured first lien bank credit facility ratings and B2 senior unsecured notes rating. The speculative grade liquidity rating is unchanged at SGL-1. At the same time, Moody's revised the outlook to positive from stable. The outlook change to positive reflects Moody's expectations for continued revenue growth and strong free cash flow that results in steadily declining financial leverage. RATINGS RATIONALE Option Care's Ba3 CFR reflects the company's market position as the largest independent infusion provider with over $5.6 billion in revenue. The home infusion services industry benefits from favorable long-term growth dynamics as the home is generally considered the patient-preferred and lowest cost of care setting. Option Care will continue to benefit from solid organic growth and a mix shift toward higher growth chronic therapies, which drive strong free cash flow generation. Moody's expects Option Care's debt-to-EBITDA to improve to approximately 2.4x–2.7x over the next 12–18 months, absent any material debt-funded share buybacks or acquisitions. Option Care's rating is constrained by company's aggressive share repurchase plans, a challenging reimbursement environment, including uncertainty regarding Medicaid pressures as well as competitive pressures stemming from large, vertically integrated health care companies that own home infusion providers. The Speculative Grade Liquidity Rating of SGL-1 reflects Moody's expectations of very good liquidity over the next 12 months. Moody's expects that free cash flow will be consistently positive over the next 12 months, although the company will likely use its free cash flow for share buybacks and acquisitions. Liquidity is supported by approximately $233 million of cash reported as of December 31, 25 and $396 million available on the company's revolving credit facility. The positive outlook reflects Moody's expectations that Option Care will continue to grow revenue and earnings such that debt to EBITDA will decline toward 2.5x, absent any material debt-funded share repurchases or acquisitions. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company successfully executes its growth strategy, while also maintaining conservative financial policy and improving business diversity, scale and profitability. Quantitatively, the ratings could be upgraded if debt to EBITDA is sustained below 2.5 times. The ratings could be downgraded if the company adopts more aggressive financial policies including material debt-funded acquisitions, share repurchases or dividends. If the company experiences a material decline in profitability the ratings could also be downgraded. Quantitatively, the ratings could be downgraded if debt to EBITDA is sustained above 3.5 times. Option Care is a public company and the leading independent provider of home and alternate treatment site infusion therapy services through its national network of over 190 locations throughout the US These services involve the preparation, delivery, administration and monitoring of medication for a broad range of conditions. These include infections, malnutrition, heart failure, bleeding disorders, autoimmune disorders, and a variety of other rare conditions. The revenues are approximately $5.6 billion for 2025. The principal methodology used in these ratings was Business and Consumer Services published in February 2026. Option Care 's Ba3 CFR is two notches below the Ba1 scorecard-indicated outcome. The difference reflects Moody's views that the company's ratings are constrained by the company's potential use of debt to finance its share repurchase plans, as well as challenging reimbursement environment. OSCAR ACQUISITION: S&P Lowers ICR to 'CCC' on Covenant Tightness ---------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on U.S.-based glass, glazing products, and related hardware provider Oscar AcquisitionCo LLC to 'CCC' from 'CCC+'. At the same time, we lowered our issue-level rating on the company's senior secured term loan and senior unsecured notes to 'CCC' and 'CC', respectively. Our '3' and '6' recovery ratings on the senior secured term loan and senior unsecured notes, respectively, are unchanged. The negative outlook reflects our view that Oscar Acquisition faces heightened risk of a liquidity crisis or default in 2026 mainly due to declining availability under its RCF from persistent free cash flow deficits and unsustainably high leverage. Oscar's earnings and liquidity have been weaker than expected, leading to draws on the company's revolving credit facility (RCF). Absent a significant, unforeseen positive development, the company is unlikely to meet its financial commitments, heightening the risk of a default within the next 12 months. S&P said, "We expect negative free operating cash flow (FOCF) to persist through 2026 to an extent that could exhaust the company's liquidity or lead to a covenant breach. "We believe Oscar Acquisition's ongoing cash flow deficits and weaker liquidity have increased the risk of a liquidity event. The company reported negative S&P Global Ratings-adjusted FOCF of about $80 million for 2025, which exceeded our previous expectations, and required borrowings of about $45 million under its $340 million revolving credit facility due 2029. We assume FOCF deficits will persist through 2026 and further constrain its liquidity position, while also providing minimal cushion against the company's RCF covenant. "As a result, we believe it is likely that the company continues to draw on its RCF, which together with depressed EBITDA, would result in increasing leverage and a covenant breach. Under this scenario, the company could access only $119 million under the RCF, which would cover the upcoming quarterly interest payment and principal amortization. In our view, the company is unlikely to meet its financial commitments absent an unforeseen positive development or equity contribution from its financial sponsor, KPS Capital Partners. We believe the company could default within the next 12 months either from a liquidity crisis such that it misses an interest payment or engages in a distressed exchange. "Industry headwinds continue to pressure Oscar Acquisition's performance. The company reported weaker earnings in year 2025 compared with our prior expectations as the company continues to feel the effects of elevated input costs, especially aluminum, on which tariffs have had a negative impact. These elevated costs caused Oscar Acquisition's S&P Global Ratings-adjusted EBITDA margins to decline to 11%-12% for 2025, which reflects its inability to sustain its profitability through lower demand cycles. "We continue to expect overall demand conditions in the company's residential end markets to remain subdued through 2026 and as such, we anticipate minimally negative to flat revenue growth. Nonetheless, we believe the company's current investments in efficiency initiatives may support an modest improvement in its profitability over the longer term once business conditions normalize. "We view Oscar Acquisition's liquidity position as less than adequate. Although the company ended 2025 with about $330 million of liquidity from cash on hand and availability under its $340 million RCF. We believe its uneven FOCF prospects and increased leverage could constrain its borrowing base and liquidity limiting its covenant headroom and ability to absorb low-probability adversities. We also forecast EBITDA interest coverage of about 1x. Furthermore, Oscar Acquisition's failure to maintain leverage below the covenant threshold on its RCF could curtail its access to the facility, leaving it reliant on its roughly $13 million of cash on hand. "The negative outlook reflects our view that Oscar Acquisition faces heightened risk of a or default in 2026 mainly due to declining availability under its RCF from persistent free cash flow deficits and unsustainably high leverage." S&P could lower the rating if: -- S&P believes a default, distressed exchange, or liquidity shortfall is inevitable within the next six months; or -- If Oscar Acquisition announces it will miss an interest or principal payment or undertake a distressed exchange or debt restructuring. S&P said, "We could raise our rating on Oscar Acquisition if the company improves liquidity such that covenant headroom improves and we no longer envision a default scenario occurring within the next 12 months." PENNSYLVANIA BREWING: Case Summary & 20 Top Unsecured Creditors --------------------------------------------------------------- Debtor: Pennsylvania Brewing Company Inc. 800 Vinial Street Pittsburgh, PA 15212 Business Description: Pennsylvania Brewing Company Inc., based in Pittsburgh, Pennsylvania, operates as a craft brewery and restaurant, producing a variety of German-style beers while offering on-site dining. Founded in 1986, the company occupies the historic Eberhardt & Ober Brewery site and integrates brewing operations with its restaurant, featuring products such as Penn Pilsner, Penn American Pale Ale, Penn Gold and Refreshin' Session IPA. Its primary customers include local patrons visiting the brewpub and regional distributors carrying its beers. Chapter 11 Petition Date: March 31, 2026 Court: United States Bankruptcy Court Western District of Pennsylvania Case No.: 26-20914 Debtor's Counsel: Donald R. Calaiaro, Esq. CALAIARO VALENCIK 555 Grant Street Suite 300 Pittsburgh, PA 15219 Tel: 412-232-0930 Fax: 412-232-3858 E-mail: dcalaiaro@c-vlaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Stefan W. Nitsch as managing 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/XWS27PQ/Pennsylvania_Brewing_Company_Inc__pawbke-26-20914__0001.0.pdf?mcid=tGE4TAMA PUERTO RICO: PREPA Bondholders Not Entitled to Administrative Claim ------------------------------------------------------------------- Judge Laura Taylor Swain of the U.S. District Court for the District of Puerto Rico denied the motion of the Puerto Rico Electric Power Authority ("PREPA") bondholders for allowance of administrative expense claim. PREPA is a public corporation created under the Puerto Rico Electric Power Authority Act, Act No. 83-1941, codified at 22 L.P.R.A. Secs. 191-240 (as amended, the "Authority Act"), to supply substantially all of the electricity consumed in the Commonwealth. The Authority Act authorizes PREPA to issue bonds. 22 L.P.R.A. § 206. Between the years 1974 and 2016, PREPA made several bond issuances pursuant to the Trust Agreement, totaling approximately $8.3 billion of bonds (the "Bonds"). The Motion was filed by Assured Guaranty Inc., GoldenTree Asset Management LP, National Public Finance Guarantee Corporation, the PREPA Ad Hoc Group, Syncora Guarantee, Inc., and U.S. Bank National Association as bond trustee. The Bond Trustee, on behalf of the Bondholders, filed Proof of Claim No. 18449 on May 21, 2018, as a fully secured claim in the amount of $8,477,156,729.56, for amounts owed at the time the Title III petition was filed pursuant to a trust agreement between PREPA and the Bond Trustee (as successor trustee), dated as of January 1, 1974, as amended and supplemented. Through the Motion, the Bondholders seek the entry of an order allowing an administrative expense priority claim in an amount "no less than $3.7 billion, the amount of which may increase if PREPA continues to use Net Revenues" after the date on which an order granting the Motion is issued without providing adequate protection. The Financial Oversight and Management Board for Puerto Rico has requested that the Court deny the Motion as a matter of law, arguing that the Bondholders have not demonstrated any entitlement to administrative expense priority under the applicable sections of the Bankruptcy Code, as incorporated into PROMESA. On July 2, 2017, the Oversight Board filed a petition pursuant to Title III of PROMESA, commencing a debt adjustment proceeding for PREPA under that statute. On May 3, 2019, the Oversight Board, the Puerto Rico Fiscal Agency and Financial Advisory Authority ("AAFAF"), and PREPA (together the "Government Parties"), along with the Ad Hoc Group and Assured (followed soon thereafter by Syncora and National), entered into a restructuring support agreement intended to resolve claims related to the Bonds by granting certain treatment of the claims in exchange for support of a corresponding plan of adjustment (the "2019 RSA"). The 2019 RSA contemplated, and according to the Oversight Board was dependent upon, passage by the Commonwealth of legislation authorizing several transactions called for by the RSA. Such legislation was never passed. On April 7, 2025, Movants filed the Motion, in which they made three legal arguments, any one of which would, if valid, suffice to state a claim for an administrative expense claim. First, Movants argue that Section 503(b)(1)(A) entitles them to an administrative expense claim for Net Revenues spent or withheld by PREPA during the life of the Title III case, as "actual, necessary costs and expenses of preserving the estate." Movants contend that: 1. PREPA's use of Movants' collateral entitles them to a priority claim under this provision because such use created "actual value conferred on the bankrupt estate." 2. Even if Section 503(b)(1)(A) does not by its direct application entitle them to an administrative expense claim, the Supreme Court's decision in Reading v. Brown, 391 U.S. 471, 477 (1967), and its progeny provide an alternative basis for their claim because "tort claims arising during a bankruptcy case give rise to administrative expense claims." As a fallback, Movants further contend that Section 922(c) should also entitle them to an administrative expense claim because "‘there has been a diminution in the value of [Movants'] secured collateral' by reason of the automatic stay." Movants argue that PREPA's failure to provide Movants with adequate protection despite their requests for it earlier in the case and, separately, failure to provide the adequate protection payments contemplated by certain provisions of the 2019 RSA, entitle them to an administrative expense claim under Section 922(c). 3. The Court must rule in their favor under Section 503(b)(1)(A) and Section 922(c) as a matter of constitutional avoidance. The Bondholders principally cite case law established under section 507(b) of the Bankruptcy Code, which is largely inapplicable because, unlike section 507(b), neither Chapter 9 nor PROMESA incorporates section 363 of the Bankruptcy Code, and so the Debtor's use of "cash collateral" could not by itself form the predicate for an administrative claim. Because PROMESA lacks section 363, and is thus more deferential to debtors, there is no restriction on PREPA's right to use its collateral, unlike in Chapter 11 cases in which debtors are subject to the restrictions imposed by section 363. Accordingly, the Court finds the Bondholders' argument fails as a matter of law. The Bondholders argue that, by signing on to the 2019 RSA, which would have permitted certain payments characterized as adequate protection payments, the Oversight Board agreed to provide adequate protection. This argument fails because the Court never approved the 2019 RSA so, by its own terms, that proposed agreement never came into effect, nor did adequate protection obligations thereunder come into effect. The Bondholders' argument for an administrative expense claim also fails the second prong of the test governing administrative claims based upon failed adequate protection, because, were the Court to assume, arguendo, a failure of adequate protection, the Bondholders also have not demonstrated that they suffered any loss as a direct result of the automatic stay. The Court holds that: (a) the Bondholders have not demonstrated that PREPA's postpetition use of their alleged collateral is an "actual, necessary expense" incurred by PREPA postpetition that can be prioritized as an administrative expense under section 503(b)(1)(A) of the Bankruptcy Code ("Section 503(b)(1)(A)"), (b) the Bondholders have failed to show that they are entitled to administrative expense priority under the fundamental fairness doctrine enunciated in Reading v. Brown, 391 U.S. 471, 477 (1967), because that doctrine is inapplicable to their claim and because they have not pleaded cognizable claims sounding in tort, and (c) the Bondholders have not shown that they are entitled to priority claims under section 922(c) of the Bankruptcy Code ("Section 922(c)") because PREPA did not fail to provide any Court-ordered adequate protection payments to the Bondholders. As a result, the Court denies the Motion because it fails as a matter of law to demonstrate that the Bondholders have an allowable administrative expense claim. A copy of the Court's Opinion and Order dated March 16, 2026, is available at https://urlcurt.com/u?l=4kZl0A from PacerMonitor.com. About the Commonwealth of Puerto Rico; Puerto Rico Electric Power Authority (PREPA) PREPA is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board were: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies, the Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board hired Proskauer Rose LLP as advisors and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as a financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC were onboard as attorneys. Kroll, f/k/a Prime Clerk LLC, serves the claims and noticing agent. Kroll maintains the case website https://cases.ra.kroll.com/puertorico/ Jones Day serves as counsel to certain ERS bondholders. Paul Weiss serves as counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. Dechert LLP represents an ad hoc group of certain beneficial holders, or investment advisors or managers for certain beneficial holders, holding bonds issued by Puerto Rico Electric Power Authority. QUALITY PORTABLE: Case Summary & 16 Unsecured Creditors ------------------------------------------------------- Debtor: Quality Portable Rental Service, Inc 8805 Florida Rock Road Orlando, FL 32824 Business Description: Quality Portable Rental Service, Inc., founded in 2011, provides portable sanitation and waste management solutions, including pump-out services, across Florida, Georgia, and Alabama. The company supplies standard and ADA-accessible portable toilets, high-rise units, hand wash stations, and dumpsters, while also offering septic-related services, serving commercial and residential construction projects as well as festivals, events, and municipal programs. Chapter 11 Petition Date: March 31, 2026 Court: United States Bankruptcy Court Middle District of Florida Case No.: 26-02322 Debtor's Counsel: Jeffrey S. Ainsworth, Esq. BRANSON AINSWORTH PLLC 1501 E. Concord Street Orlando, FL 32803 Tel: 407-894-6834 E-mail: jeff@bransonlaw.com Total Assets: $1,074,016 Total Liabilities: $1,288,779 The petition was signed by Eliud Roman Cruz as president. A full-text copy of the petition, which includes a list of the Debtor's 16 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/HSVDDDQ/Quality_Portable_Rental_Service__flmbke-26-02322__0001.0.pdf?mcid=tGE4TAMA REEL TRIMS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Reel Trims LLC 680 NW Enterprise Drive Port Saint Lucie, FL 34986 Business Description: Reel Trims LLC, established in 2008 in Port Saint Lucie, Florida, provides doors, trim, moulding, and hardware for residential construction and renovation projects, offering entry, interior, and sliding doors alongside finishing materials and hardware designed for durability and precise installation. The company serves contractors and homeowners, supplying components for upgrades and new builds while emphasizing craftsmanship and project-specific fit. Chapter 11 Petition Date: March 31, 2026 Court: United States Bankruptcy Court Southern District of Florida Case No.: 26-14072 Judge: Hon. Erik P Kimball Debtor's Counsel: Steven E. Wallace, Esq. STEVEN E. WALLACE, PL 2500 Quantum Lakes Drive, Suite 203 Boynton Beach, FL 33426 Tel: (561) 400-3896 Email: wallacelaw1@me.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Ronald Turba as owner. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/YNA4PZQ/Reel_Trims_LLC__flsbke-26-14072__0001.0.pdf?mcid=tGE4TAMA S & A INDUSTRIAL: Seeks to Hire Tucker Arensberg PC as Attorney --------------------------------------------------------------- S & A Industrial Contracting, Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to hire Tucker Arensberg, P.C. as attorneys. The firm's services include: a) advising the Debtor with respect to its powers and duties as debtor in possession in the continued management and operation of its business and properties; b) preparing and filing on behalf of the Debtor, as debtor in possession, all necessary motions, applications, answers, orders, reports, complaints and other papers in connection with the administration of the Debtor's estate, including the Petition and Schedules and amendments thereto; c) attending meetings and negotiating with representatives of creditors and other parties-in-interest; d) taking all necessary actions to protect and preserve the Debtor's estate, including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections to claims filed against the Debtor's estate; e) negotiating and preparing on the Debtor's behalf any plan(s) of reorganization, disclosure statement(s), and all related agreements and/or documents, and take any necessary action on behalf of the Debtor to obtain confirmation of such plan(s); f) representing the Debtor in connection with cash collateral and/or post-petition financing; g) advising the Debtor in connection with any sale(s) of assets; h) appearing before this Court, any appellate courts, 341 meetings before the United States Trustee and protecting the interests of the Debtor's estate in those forums; i) consulting with the Debtor regarding non-bankruptcy disciplines of law such as, by way of example only, tax, labor and employment, real estate, corporate finance, securities, and certain litigation matters; and j) performing all other necessary legal services and provide all other necessary legal advice to the Debtor in connection with this Chapter 11 case. Tucker Arensberg's current hourly rates are: Michael A. Shiner $675 Zakarij O. Thomas $600 Joanna D. Studeny $400 Shareholders $460 to $700 Associates $270 to $350 Paralegals $125 to $200 In addition, the firm will seek reimbursement for expenses incurred. Tucker Arensberg received a retainer of $17,000. Michael Shiner, Esq. a shareholder of Tucker Arensberg, assured the court that the firm is a "disinterested person," as that term is defined in section 101(14) of the Bankruptcy Code, and does not hold or represent any interest adverse to the Debtor's estate. The firm can be reached through: Michael A. Shiner, Esq. Tucker Arensberg, P.C. 300 Corporate Center Drive Suite 200 Camp Hill, PA 17011 Tel: (717) 234-4121 Fax: (717) 232-6802 Email: harrisburginfo@tuckerlaw.com About S & A Industrial Contracting, Inc. S & A Industrial Contracting, Inc., based in Perryopolis, Pennsylvania, provides repair and maintenance services for commercial and industrial machinery and equipment. The company operates within the industrial services sector and serves customers that utilize crane and hoist systems, positioning it in the broader market for industrial equipment maintenance and support. S & A Industrial Contracting, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 26-20786) on March 20, 2026, listing $500,000 to $1 million in assets and $1 million to $10 million in liabilities. The petition was signed by Stephen Celesti as authorized representative of the Debtor. Michael Shiner, Esq. at TUCKER ARENSBERG, P.C. serves as the Debtor's counsel. SAMYS OC: Court Extends Cash Collateral Access to May 30 -------------------------------------------------------- Samys OC, LLC received a one-month extension from the U.S. Bankruptcy Court for the District of Kansas to use cash collateral. The court issued its 13th interim order extending the Debtor's authority to use cash collateral from April 30 to May 30 to pay operating expenses set forth in its budget, subject to a 10% variance. As adequate protection for the Debtor's use of their cash collateral, secured creditors Dream First Bank and the U.S. Small Business Administration will be granted replacement liens on all post-petition cash collateral and other property of the Debtor, with the same priority and extent as their pre-bankruptcy liens. As additional protection, Dream First Bank will continue to receive a monthly payment of $59,913.90. The interim order provides for a carveout of up to $125,000 for attorney fees and expenses, and up to $25,000 for other professional fees and disbursements. Events of default under the order include the Debtor's failure to make payments to secured creditors; unauthorized use of cash collateral; dismissal of the Debtor's Chapter 11 case; obtaining credit secured by a lien on collateral that is equal or senior to liens held by secured creditors; and failure to keep the collateral insured. A final hearing is scheduled for May 20. Samys OC owes approximately $8.35 million to Dream First Bank and $500,000 to the SBA and had about $131,000 in total cash collateral at the outset of the case. About Samys OC LLC Samys OC, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Kansas Case No. 24-11166) on Nov. 14, 2024, listing up to $50,000 in assets and $10 million to $50 million in liabilities. The petition was signed by Amro M. Samy as managing member. Judge Mitchell L Herren presides over the case. Lora J. Smith, Esq., at Hinkle Law Firm is the Debtor's bankruptcy counsel. Dream First Bank, as secured creditor, is represented by: Scott M. Hill, Esq. Hite, Fanning & Honeyman, LLP 100 N. Broadway, Ste. 950 Wichita, KS 67202-2216 Telephone: (316) 265-7741 Facsimile: (316) 267-7803 hill@hitefanning.com SHELLE REALTY: Seeks to Hire Verdolino & Lowey PC as Accountant --------------------------------------------------------------- Shelle Realty, LLC seeks approval from the U.S. Bankruptcy Court for the District of Massachusetts to hire Verdolino & Lowey, P.C. as her accountants. The firm will render these services: a. prepare and file on behalf of the estate all necessary tax returns that may be required by federal, state or local law; b. advise the Trustee regarding the tax implications of asset recovery; c. advise and assist the Trustee with respect to evaluating and objecting to proofs of claim submitted by federal and state taxing authorities; d. assist the Trustee in reviewing and examining the books and records of the Debtor with respect to potential preference and/or fraudulent conveyance or transfer claims; and to assist the Trustee with other tasks that the Trustee may require and reasonably request. The firm's hourly rates: Principals $595 Managers $275 to $525 Staff $225 to $395 Accountants $225 to $375 Clerical $105 Verdolino & Lowey, P.C. is a disinterested person as to that term as defined in 11 U.S.C. Section 101(14), according to court filings. The firm can be reached through: Matthew R. Flynn, CPA, CFF, CIRA Verdolino & Lowey, P.C. 124 Washington St Foxborough, MA 02035 Tel: (508) 543-1720 Fax: (508) 543-4114 About Shelle Realty, LLC Shelle Realty, LLC invests in and manages residential properties with a focus on affordable and recovery housing across multiple states. Shelle Realty, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case No. 25-12293-CJP) on October 24, 2025. At the time of the filing, Debtor had estimated assets of between $1,000,001 and $10 million and liabilities of between $1,000,001 and $10 million. Judge Christoper J. Panos oversees the case. Ehrhard & Associates, P.C. is Debtor's legal counsel. SJW AUTOMOTIVE: Seeks to Tap Peak Business as Valuation Specialist ------------------------------------------------------------------ SJW Automotive LLC seeks approval from the U.S. Bankruptcy Court for the Western and Eastern Districts of Arkansas to hire Ampleo Valuation Services, LLC d/b/a Peak Business Valuation as valuation specialist. The firm will render these services: (a) conducting a valuation of the Debtor's business and its assets at its Rogers location, including real property, equipment, and goodwill, as applicable; (b) preparing a written valuation report suitable for use in connection with the Debtor's potential sale of its location in Rogers, Arkansas; (c) providing expert testimony or declarations in support of plan confirmation if required by the Court; and (d) such other valuation and appraisal services as may be necessary or appropriate in the administration of this estate. Peak Business will be paid at these standard hourly rates: Junior Analyst $150 per hour Senior Analyst $250 per hour Manager $350 per hour Shawn Hyde, Principal $500 per hour Ryan Hutchins, Expert $500 per hour The firm requires a retainer deposit of $3,500. Peak does not hold or represent any interest adverse to the Debtor or the estate in the matters upon which it is to be engaged, and is "disinterested" as that term is defined in 11 U.S.C. Sec. 101(14), according to court filings. The firm can be reached through: Ryan Hutchins Ampleo Valuation Services, LLC d/b/a Peak Business Valuation 2701 N. Thanksgiving Way, Suite 100 Lehi, UT 84043 Tel: (435) 359-2684 Email: ryan@peakbusinessvaluation.com About SJW Automotive LLC SJW Automotive LLC operates an automotive repair and service center in Springdale, Arkansas, providing vehicle maintenance, diagnostics, transmission repair, and general auto repair services. SJW Automotive filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. W.D. Ark. Case No. 26-70217) on Feb. 9, 2026. In the petition signed by Braeden Lynn Johnson, incorporator or organizer, the Debtor disclosed up to $50,000 in assets and up to $10 million in liabilities. Judge Bianca M. Rucker oversees the case. The Debtor tapped Jessica Hall, Esq., at WH Law, PLC as counsel. SOTERA HEALTH: Moody's Alters Outlook on 'B1' CFR to Positive ------------------------------------------------------------- Moody's Ratings affirmed Sotera Health Holdings, LLC's ("Sotera Health") B1 Corporate Family Rating, B1-PD Probability of Default Rating and the B1 ratings of the existing senior secured first lien term loan due 2031, backed senior secured first lien revolving credit facility due 2030 and backed senior secured notes due 2031. At the same time, Moody's revised the outlook to positive from stable. The company's Speculative Grade Liquidity (SGL) rating is unchanged at SGL-1. The affirmation of Sotera Health's ratings reflects Moody's expectations that the company will maintain solid credit metrics and very good liquidity. The outlook change to positive reflects Moody's expectations of deleveraging resulting from EBITDA growth, debt amortization, and lower borrowing costs after 2025 refinancing. Moody's expects that Sotera Health will continue to grow its business while managing its exposure to litigation risks. Moody's anticipates that the company will operate with debt/EBITDA in the low-to-mid 4.0x range in the next 12-18 months, absent any materially large litigation expenses. RATINGS RATIONALE Sotera Health's B1 CFR benefits from its leading position in the contract sterilization outsourcing market, no meaningful customer concentration, a global footprint and significant barriers to entry and meaningful customer switching costs. The company's rating also reflects solid business performance, consistent positive free cash flow, and very good liquidity. The B1 CFR is constrained by moderately high leverage, exposure to the litigation risks associated with the device sterilization industry, and the significant environmental risks arising from the handling of toxic gases in its manufacturing process. Sotera Health also has a concentrated supply chain in its Nordion business, which sources the majority of Co-60 from reactors in Canada and Russia. Moody's estimates that the company's financial leverage was approximately 4.5 times at the end of December 31, 2025 which Moody's expects to modestly decline with earnings growth. Sotera Health's revolving credit facility, term loans and senior secured notes are all rated B1, at the same level as the company's Corporate Family Rating. The revolving credit facility term loans and senior secured notes represent substantially all of company's debt, and these debt instruments are pari passu with each other. Moody's expects the company to maintain very good liquidity over the next 12 months. The company will generate $100-$130 million in free cash flow in the next 12 months. Liquidity is also supported by $345 million cash on hand and approximately $591.8 million available under the $600 million revolver ($8.2 million utilized by letters of credit) as of December 31, 2025. The revolver is subject to a net leverage ratio of a maximum of 9.0x (with no step-downs) but this covenant is only tested when the revolver outstanding is the greater of $169.5 million and 40% of the facility size in effect. Moody's do not anticipate that the covenant will need to be tested, but if tested, the company will have ample cushion in the next several quarters. The company's assets are pledged as collateral for the secured credit facilities, thereby limiting the sale of assets as an alternative source of liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that could lead to an upgrade include balanced financial policies and continued growth in business scale and revenues, well-contained costs related to litigation risks, and favorable outcomes for the pending lawsuits. Quantitatively, ratings could be upgraded if debt/EBITDA is sustained below 4.5 times. Factors that could lead to a downgrade include negative developments with the company's legal exposure. The rating could also be downgraded if the company's liquidity weakens, financial policies become more aggressive or if legal risks increase substantially. Quantitively, ratings could be downgraded if debt/EBITDA is sustained above 5.5 times. Sotera Health Holdings, LLC, headquartered near Cleveland, OH, is a global provider of mission-critical end-to-end sterilization solutions, lab testing and advisory services for the healthcare industry with operations primarily in the Americas, Europe and Asia. Revenue was $1.16 billion for the twelve months ended December 31, 2025. The parent company of Sotera Health Holdings, LLC -- Sotera Health Company -- is a publicly traded company. The principal methodology used in these ratings was Business and Consumer Services published in February 2026. 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. STL HOLDING: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed STL Holding Company, LLC's (dba DSLD Homes) ratings, including its Long-Term Issuer Default Rating (IDR) at 'B+', senior unsecured revolving credit facility and senior unsecured notes at 'BB-' with a Recovery Rating of 'RR3'. The Rating Outlook is Stable. DSLD's 'B+' IDR reflects its small scale, limited geographic diversification, normalizing margins, volatile cashflow generation and adequate financial flexibility. The rating is also supported by DSLD's leading positions in its local markets, conservative leverage and land-light strategy. The Stable Outlook reflects Fitch's expectation that DSLD will maintain significant rating headroom relative to Fitch's negative sensitivities for the 'B+' IDR, despite expectations of further margin pressure amid a constrained housing market. Key Rating Drivers Small Scale and Limited Diversification: Fitch views DSLD's small scale and geographic concentration as limiting factors for the IDR. DSLD was the 24th largest homebuilder in the U.S. based on 2024 home deliveries and operates 159 communities across 16 markets in six states. The company has meaningful concentration in Louisiana, which accounted for about 69% of closings (YTD Sept. 30, 2025), exposing DSLD to outsized impacts during regional downturns. DSLD holds leading positions in most of its markets and generally competes with other regional homebuilders as well as large national public homebuilders. Improved geographic diversification, particularly reduced concentration in any single state, would be positive for the IDR. Land-Light Strategy: DSLD maintains one of the shorter owned-land positions among the builders in Fitch's coverage due to its land-light strategy primarily through finished-lot option contracts with developers. Fitch views this strategy positively, as potential write-downs and impairments charges in cyclical downturns are limited to option deposit forfeitures. However, management historically does not re-trade option agreements and is unlikely to walk away from option contracts, potentially burdening DSLD with excess land holdings and pressure margins during downturns. As of Sept. 30, 2025, DSLD controlled 14,359 lots, with about 43% owned, and the remaining controlled through options. Based on LTM closings, DSLD controlled 3.7 years of land and owned 1.6 years of supply, of which 17% consisted of homes in backlog. The company's owned-lot position has increased recently compared with prior years, when it held less than a one-year owned supply. Strong Credit Metrics: DSLD's credit metrics are strong for the 'B+' IDR with meaningful rating headroom relative to negative sensitivities. Fitch-calculated net debt to capitalization (excluding $50 million of cash classified by Fitch as not readily available for working capital) is forecast to be between 30% and 35% in 2026 and 2027. EBITDA leverage was 2.1x for the LTM ending Sept. 30, 2025 and is forecast to rise above 2.5x by YE 2026 before falling below 2.5x in 2027. Management aims to maintain EBITDA leverage below 2.0x and debt to capitalization of 35%-40%. Margins Normalizing to Historical Levels: Fitch expects EBITDA margins to settle between 9.5% and 10.5% in 2026 and 2027, lower than the 11.8% reported in 2024 due to elevated incentives, higher land costs, and increased selling, general and administrative (SG&A) expenses. Industry margins are expected to return to levels similar to pre-pandemic levels, and margins meaningfully below Fitch's expectations would have negative implications for the rating. Improving Cash Flow: Fitch expects DSLD to generate positive cash flow from operations (CFO) in 2026 and 2027, driven by moderating inventory spending and lower working capital investment. FCF margins are likely to be low single digits in 2026 and neutral to negative low single digits in 2027. DSLD generated negative CFO during 2023-2024, and Fitch expects the company to reduce land spending in a downturn and monetize housing inventory to support debt reduction or cash accumulation. The rating could be pressured if management pursues aggressive capital allocation during a housing downturn, leading to sustained negative FCF. Financial Flexibility: DSLD has adequate liquidity supported by cash, revolver availability and funds from operations to sustain its operations and support modest growth. The company distributes a meaningful portion of its net income to its shareholders, as several subsidiaries are structured as S-corporations, and its shareholders are taxed on part of the company's income. DSLD is likely to fund growth by accessing debt markets and/or cash flow from operations. Constrained Housing Market: Fitch expects the housing market to remain constrained, with low affordability and low consumer confidence weakening demand. DSLD's focus on more affordable price points positions the company to target first-time homebuyers. However, elevated mortgage rates and broader uncertainty, including the Iran conflict, are likely to undermine buyer sentiment during the critical spring selling season; accordingly, Fitch expects the company's revenue to remain flat in FY 2026. Ownership Structure: DSLD is a privately held company with concentrated ownership among management and other owners, which poses an increased risk of shareholder friendly activities relative to publicly traded peers. However, there is no one dominant shareholder and management has maintained discipline in its capital allocation strategy, including a measured growth strategy and refraining from significant cash distributions to shareholders. Peer Analysis DSLD is similar in size compared with Adams Homes, Inc. (Adams; B+/Stable) in terms of revenue and community count but smaller than Dream Finders Homes, Inc. (Dream Finders; BB-/Positive). DLSD is less geographically diversified than both Adams and Dream Finders, but it has higher deliveries than Adams. DSLD has stronger credit metrics relative to Dream Finders and Adams. All three peers undertake moderate speculative building and have meaningful exposure to entry-level homes, but both DSLD and Dream Finders have greater exposure to other price points and buyer segments. DSLD has lower EBITDA margins than Adams and Dream Finders. It also has a shorter owned-lot position than Adams but longer than Dream Finders. Fitch’s Key Rating-Case Assumptions - Homebuilding revenues to remain flat during 2026 and increase mid-single digits in 2027; - EBITDA margins of 9.5% to 10.5% in 2026 and 2027; - CFO to be 6%-8% of homebuilding revenues in 2026 and 1%-3% of homebuilding revenues in 2027; - FCF to remain low single digit in 2026 and neutral to low single digit negative in 2027; - Net debt to capitalization of 30%-35% in 2026 and 2027; - EBITDA leverage between 2.5x-3.0x in 2026 and decrease to below 2.5x in 2026. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bb, Moderate), Sector Characteristics (bb, Moderate), Market and Competitive Positioning (bb-, Moderate), Diversification and Asset Quality (b, Higher), Company Operational Characteristics (bb, Moderate), Profitability (b+, Moderate), Financial Structure (bbb, Moderate), and Financial Flexibility (bb-, Higher). - The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. - Weakest link considerations adjustment is applied based on Diversification and Asset Quality factor and results in an adjustment of -1 notch(es). - B+ to CC considerations apply in its analysis and result in no adjustment. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'aa-' results in no adjustment. - The SCP is 'b+'. Recovery Analysis The recovery analysis assumes that DSLD would be reorganized as a going-concern (GC) in bankruptcy rather than liquidated. Fitch assumed a 10% administrative claim. GC Approach The GC EBITDA estimate of $80 million reflects Fitch's view of a post-restructuring sustainable level of EBITDA, on which the agency bases the enterprise value (EV). The GC EBITDA is based on Fitch's assumption that distress would arise from further weakening of the housing market combined with a loss of market share in key markets. Fitch estimates annual revenues that are 25% lower than 2025 revenues forecast along with an EBITDA margin of 9.2% (about 100 bps below the 2025 estimate) would reflect the company's lower revenue base following a housing downturn and a sustainable margin profile after right sizing. Fitch applies a 5.5x GC EBITDA multiple to calculate the post-reorganization EV. The choice of the multiple considered the following factors: - Fitch used a 5.5x multiple to calculate the EV of Adams Homes (B+/Stable). Adams is the 30st largest homebuilder by deliveries, with operations concentrated in the Southeast. Fitch used a 6.0x multiple to calculate the EV for Empire Communities Corp. (B-/Stable). Empire is one of the largest low-rise builders in the Greater Golden Horseshoe and Greater Toronto areas and has a growing presence in the U.S. - Trading multiples (EV/EBITDA) for public homebuilders have ranged between 5.5x and 8.5x over the past 24 months. Fitch assumes that the revolving credit facility will be about 75% drawn at the time of distress, considering potential shrinkage in the borrowing base due to contracting inventory levels during a period of weaker demand, leading to a default. The allocation of value in liability waterfall results in a recovery corresponding to an 'RR1' for the unsecured revolver and senior unsecured notes. However, for issuers with an IDR of 'B+' or lower, unsecured debt instruments are capped at 'RR3'/+1, resulting in a 'BB-' rating with a Recovery Rating of 'RR3' for the unsecured revolver and senior unsecured notes. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Net debt to capitalization sustained above 55%; - EBITDA leverage sustained above 4.5x; - (CFO-capex)/debt sustained below 2.5%; - EBITDA interest coverage falls below 2.0x; - Deterioration in the company's liquidity profile, including consistently negative CFO and limited availability under its revolving credit facility. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The company increases its size and enhances geographic diversification, demonstrated by reducing concentration such that no single state represents more than 50% of revenue or closings on a sustained basis, while maintaining net debt to capitalization consistently below 45% and EBITDA leverage below 4.0x; - (CFO-capex)/debt sustained above 5%. Liquidity and Debt Structure DSLD has sufficient liquidity, with $68.7 million of cash and full availability under its $150 million revolving credit facility (RCF) as of Sept. 30, 2025. The company's debt maturities are well-laddered, with no major debt maturities until July 2028, when $150 million of unsecured RCF facility mature. The next maturity is in February 2029 when its senior unsecured notes become due. Issuer Profile STL Holding Company, LLC (dba DSLD Homes) designs, builds and markets detached and attached single-family homes in Louisiana, northwest Florida, Alabama, Mississippi, and east Texas. The company was the 24th largest U.S. homebuilder in 2024 based on home deliveries. Summary of Financial Adjustments Historical and projected EBITDA is adjusted to add back interest expense included in cost of sales and to exclude impairment charges, land option abandonment costs and other non-recurring items. Fitch also excludes the EBITDA and debt of DSLD's financial services (FS) operations as this subsidiary's only major debt, three mortgage warehouse facilities, are non-recourse to DSLD. The FS subsidiary generally sells the mortgage it originates and the related servicing rights to third-party purchasers shortly after origination. However, as part of its captive finance adjustment, Fitch assumes a capital structure for the FS operations that is sufficiently robust for that entity to support its debt without reliance on the corporate entity. Fitch applies a hypothetical capital injection from the corporate entity to achieve a target capital structure (1.0x debt/equity) that is indicative of a self-sustaining credit profile for DSLD's FS operations. The debt-to-equity ratio of DSLD's FS operation was below this target level, so Fitch did not make any adjustments related to the FS operations. Fitch reviews historical CFO on a consolidated basis and forecasts CFO excluding the FS operations. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for STL Holding Company, LLC. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- STL Holding Company, LLC LT IDR B+ Affirmed B+ senior unsecured LT BB- Affirmed RR3 BB- STOLI GROUP: Trustee Taps HMP Advisory as Financial Advisor ----------------------------------------------------------- William R. Patterson, the Chapter 11 Trustee of Stoli Group USA LLC, seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire HMP Advisory Holdings, LLC dba Harney Partners as his financial advisor. The firm will render these services: (a) assist the Trustee and his Estate Professionals with general matters related to the pending chapter 11 proceeding; (b) assist in the preparation or supervise the preparation of a financial forecast; winddown budget; and 13-week cash flow forecast, and any other necessary financial analysis or related documentation, to support the successful completion of the chapter 11 proceeding, as needed; (c) assist in the management of the Stoli Debtor's affairs, staff, and operations; (d) assist in the review of financial information exchanged between the Stoli Debtor and its creditors, any regulatory agencies, consultants, prospective investors, or other third parties, as may be necessary or appropriate; (e) assist Trustee with preparation of any periodic reporting to the Court and the Office of the United States Trustee, including Monthly Operating Reports (MOR), as required; (f) coordinate with the Trustee and any of the other professionals retained by the Trustee in this chapter 11 proceeding; (g) perform such other financial advisory services as may be required by the Trustee in connection with this chapter 11 case that the Trustee determines necessary and appropriate; (h) supervise the engagement of the Trustee's Estate Professionals and assist legal counsel and the Trustee in executing the Trustee's restructuring efforts; (i) assist in connection with motions, responses, or other court activity as directed by legal counsel; (j) attend meetings and assist in negotiations with representatives of the Stoli Debtor's creditors and in developing the response to any objections from parties in interest to the bankruptcy plan or other courses of action undertaken by the Trustee; (k) prepare and offer declarations, reports, depositions, and testimony in connection with this chapter 11 case; (l) seek to maximize the value of the Stoli Debtor's chapter 11 estate through, one or more of the following: seeking financing, seeking the sale of some or all of the Stoli Debtor's assets or a sale of the Stoli Debtor's business operations, seeking to refinance existing indebtedness, seeking a recapitalization, and seeking a restructuring or reorganizing of the Stoli Debtor's business, in whole or in part; and (m) otherwise assist in the Stoli Debtor's business activities and other financial advisory tasks as requested by the Trustee, including budgeting, cash management and financial management. The firm's discounted hourly rates are: President / EVP $700 to $900 per hour Managing Director $550 to $750 per hour Senior Manager / Director $450 to $600 per hour Manager $350 to $500 per hour Sr. Consultant $300 to $400 per hour Support Staff $180 to $250 per hour Harney Partners is a "disinterested person" within the meaning of Bankruptcy Code section 101(14), according to court filings. The firm can be reached through: Gregory S. Milligan HMP Advisory Holdings, LLC dba Harney Partners 2626 Cole Avenue, Suite 300 Dallas, TX 75204 Tel: (214) 501-0468 About Stoli Group (USA) LLC Stoli Group (USA), LLC is a producer, manager, and distributor of a global portfolio of spirits and wines. Stoli Group (USA) and Kentucky Owl, LLC filed Chapter 11 petitions (Bankr. N.D. Texas Lead Case No. 24-80146) on November 27, 2024. At the time of the filing, Stoli Group (USA) reported $100 million to $500 million in assets and $10 million to $50 million in liabilities while Kentucky Owl reported $50 million to $100 million in assets and $50,000,001 to $100 million in liabilities. Judge Scott W. Everett handles the cases. Holland N. O'Neil, Esq., at Foley & Lardner, LLP is the Debtor's legal counsel. STOLI GROUP: Trustee Taps Thompson Coburn LLP as Legal Counsel -------------------------------------------------------------- William R. Patterson, the Chapter 11 Trustee of Stoli Group USA LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Thompson Coburn LLP as his counsel. The firm's services include: (a) advising the Trustee with respect to his rights, duties, and powers in the management of the Stoli Debtor's businesses and affairs as set forth in the Bankruptcy Code, Bankruptcy Rules, or other applicable law in this chapter 11 case; (b) providing legal advice and services regarding local rules, practices, and procedures, including Fifth Circuit law; (c) attending meetings and negotiating with representatives of creditors and other parties in interest; (d) taking all necessary actions to protect, preserve, and maximize the value of the Stoli Debtor's chapter 11 estate, including prosecuting actions on behalf of this chapter 11 estate, defending or prosecuting any action affecting this chapter 11 case, and representing the Trustee in negotiations concerning litigation involving this chapter 11 case, including objections to claims filed against this chapter 11 case; (e) preparing necessary pleadings in connection with this chapter 11 case, including applications, motions, answers, orders, reports, and other legal papers on behalf of the Trustee, or otherwise beneficial to the administration of this chapter 11 estate; (f) representing the Trustee at hearings and other proceedings held before this Court and any appellate courts to represent the interests of the Stoli Debtor's chapter 11 estate; (g) representing the Trustee in connection with obtaining authority to continue using cash collateral and securing post-petition financing, if any; (h) taking any necessary action on behalf of the Trustee to negotiate, prepare, and obtain approval of a disclosure statement and confirmation of a chapter 11 plan and all documents related thereto; (i) advising and taking the necessary action on behalf of the Trustee to consider, negotiate, prepare, and obtain approval of any sale transactions of some or all of the Stoli Debtor's assets or a sale of the Stoli Debtor's business operations and any other relevant matters; and (j) performing such other legal services as may be required by the Trustee in connection with this chapter 11 case that the Trustee determines necessary and appropriate. Thompson Coburn's hourly rates are: Partners $650 to $1,380 Counsel and Associate $425 to $775 Paralegals $365 to $415 Thompson Coburn is a "disinterested person" within the meaning of Bankruptcy Code section 101(14), according to court filings. The firm can be reached through: Katharine Battaia, Esq. Liz Boydston, Esq. Alexandra E. Rossetti, Esq. Thompson Coburn LLP 2100 Ross Avenue, Suite 3200 Dallas, TX 75201 Telephone: (972) 629-7100 Facsimile: (972) 629-7171 Email: kclark@thompsoncoburn.com lboydston@thompsoncoburn.com arahn@thompsoncoburn.com arossetti@thompsoncoburn.com About Stoli Group (USA) LLC Stoli Group (USA), LLC is a producer, manager, and distributor of a global portfolio of spirits and wines. Stoli Group (USA) and Kentucky Owl, LLC filed Chapter 11 petitions (Bankr. N.D. Texas Lead Case No. 24-80146) on November 27, 2024. At the time of the filing, Stoli Group (USA) reported $100 million to $500 million in assets and $10 million to $50 million in liabilities while Kentucky Owl reported $50 million to $100 million in assets and $50,000,001 to $100 million in liabilities. Judge Scott W. Everett handles the cases. Holland N. O'Neil, Esq., at Foley & Lardner, LLP is the Debtor's legal counsel. STUDIO CHIQUE: Case Summary & 17 Unsecured Creditors ---------------------------------------------------- Debtor: Studio Chique A Full Service Salon, LLC 2308 Rhode Island Avenue, NE Washington, DC 20018 Business Description: Studio Chique A Full Service Salon, LLC, doing business as Studio Chique Luxury Salon & Wellness Spa, operates a beauty and wellness spa in Washington, DC, offering hair care, nail services, skincare, waxing, massage, body contouring and scalp treatments. Founded by Ngina Thomas, the company specializes in alopecia extension installations and corrective hair care, providing head spa services focused on scalp therapy and overall hair health. Chapter 11 Petition Date: March 31, 2026 Court: United States Bankruptcy Court District of Columbia Case No.: 26-00154 Judge: Hon. Elizabeth L Gunn Debtor's Counsel: Frank Morris II, Esq. THE LAW OFFICES OF FRANK MORRIS II 8201 Corporate Drive Suite 260 Hyattsville, MD 20785 Tel: 301-731-1000 Fax: 301-731-1206 E-mail: frankmorrislaw@yahoo.com Total Assets: $1,083,740 Total Liabilities: $2,023,434 The petition was signed by Ngina L. Thomas as owner. A full-text copy of the petition, which includes a list of the Debtor's 17 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/IZKEPWQ/Studio_Chique_A_Full_Service_Salon__dcbke-26-00154__0001.0.pdf?mcid=tGE4TAMA SVETNESS CORP: Gets Final OK to Use Cash Collateral --------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Virginia entered a final order granting Svetness, Corp. authority to use cash collateral. Under the final order, the Debtor is permitted to use cash collateral from Feb. 17 through May 15 for ordinary business operations, subject to a court-approved budget. The use is limited by 15% variance per line item and 10% overall variance. As protection, secured creditors including the U.S. Small Business Administration, Wells Fargo Bank, N.A., and JPMorgan Chase, N.A., were granted replacement liens on post-petition assets. These liens maintain the same priority and validity as the secured creditors' pre-petition interests. The order does not determine the validity or priority of pre-petition liens and the Debtor retains the ability to challenge such claims. The protections and liens granted under the order will survive plan confirmation, case conversion or dismissal, ensuring continued protection for secured creditors. The Debtor's authority to use cash collateral ends on May 15, unless extended. An automatic two-month extension is available if the Debtor files a new budget by April 21 and no objections are filed. A hearing on further extension is scheduled for May 5. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/OG0Xb from PacerMonitor.com. Svetness, an at-home personal training company, filed for bankruptcy after mounting debt, including costly merchant cash advances with nearly $60,000 in weekly payments and $46,000 in monthly loan obligations -- about half its revenue. It also owes roughly $1.875 million on an SBA disaster loan, secured by a first-priority lien on all assets. Before filing, the Debtor was paying nearly $70,000 per week on merchant cash advances and bank loans. All lender security interests are subordinate to the SBA, including those potentially held by JPMorgan, Wells Fargo, and various alternative lenders, despite some UCC filings listing only agents rather than actual creditors. About Svetness Corp. Svetness, Corp. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No. 26-10365) on February 17, 2026, listing $50,001 to $100,000 in assets and $1 million to $10 million in liabilities. Judge Brian F. Kenney oversees the case. Justin Fasano, Esq., at Mcnamee Hosea, P.A. serves as the Debtor's legal counsel. TELLICO RENTALS: Gets Extension to Access Cash Collateral --------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Tennessee entered an agreed interim order authorizing Tellico Rentals, LLC to continue using cash collateral. Under the order, the Debtor is permitted to use cash collateral through Dec. 17 in the ordinary course of business for operating expenses, including rental management fees, insurance, utilities, repairs, maintenance, and other expenses set forth in an approved budget, subject to a 20% variance by category. The order prohibits insider payments from rental management fees and requires weekly revenue and disbursement reports to secured creditors and the U.S. Trustee for specified reporting periods. The Debtor may update the budget as properties are liquidated. As adequate protection, the Debtor must escrow monthly amounts for real property taxes and interest on past-due taxes, maintain insurance, remain current on post-petition tax filings, and pay all U.S. Trustee fees and required operating reports. The Debtor also agreed to make monthly payments of $5,000 to Mary Jane Saunders. In addition, Ms. Saunders and another creditor, Grassland Financial Services, LLC, will be granted replacement liens on their collateral, with the same scope, priority, and perfection as their pre-petition liens. The order preserves the secured creditors' rights to seek additional adequate protection or administrative priority claims if later found inadequately protected. It includes enforcement provisions allowing dismissal or conversion upon noncompliance, restricts the use of insurance proceeds to property repairs, requires disgorgement of improper post-petition insider payments, and permits continued use of VSM Management, LLC for normal operations. A further hearing is set for Dec. 17, with objections due by December 10. Ms. Saunders is represented by: Maurice K. Guinn, Esq. Gentry, Tipton & McLemore, P.C. P.O. Box 1990 Knoxville, TN 37901 Phone: 865-525-5300 mkg@tennlaw.com About Tellico Rentals LLC Tellico Rentals, LLC offers cabin rental services in Tellico Plains, Tennessee. It provides a range of accommodations, including riverfront lodges, group cabins, and pet-friendly units near the Cherohala Skyway and Tellico River. Tellico Rentals sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 25-12707) on October 9, 2025, listing up to $50,000 in assets and between $500,001 and $1 million in liabilities. On October 30, 2025, the case was transferred from the Southern Division to the Northern Division and was assigned a new case number (Case No. 25-32044). Judge Suzanne H. Bauknight oversees the case. The Debtor is represented by: W. Thomas Bible, Jr., Esq. Tom Bible Law 6918 Shallowford Road, Suite 100 Chattanooga, TN 37421 Phone: (423) 424-3116 Fax: (423) 553-0639 tom@tombiblelaw.com THAI EXPRESS: Taps Christin's Accounting & Advisory as Accountant ----------------------------------------------------------------- Thai Express, Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Missouri to hire Christin's Accounting & Advisory as accountant. The firm's services include: (a) cleaning up and/or reconstructing prior accounting records as needed; (b) reconciling bank accounts and financial records; (c) tracking post-petition income and expenses; (d) preparing federal and state tax returns (for pre-petition and post-petition periods); (e) assisting with tax compliance matters and responding to tax notices; (f) preparing cash flow reports, financial reports, and projections; (g) assisting with projections for a potential reorganization plan; (h) providing profitability and operating performance analysis; (i) preparing monthly operating reports and other financial summaries if requested; and (j) assisting the Debtor and counsel with financial information needed for bankruptcy filings, including possible assistance with schedules and statements if requested. The firm will bill these rates: Accounting and Advisory Services $75 per hour Tax Return Preparation $400 per return As disclosed in the court filings, Christin A. Price does not hold or represent any interest adverse to that of the Debtor and that Christin A. Price is disinterested within the meaning of 11 U.S.C. Sec. 101(14). The firm can be reached through: Christin A. Price, EA, CPB Christin's Accounting & Advisory 509 E Elm St, Republic, MO 65738 Phone: (417) 986-3058 Email: christin@christinsbookkeeping.com About Thai Express Inc. Thai Express, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Mo. Case No. 26-60130) on Feb. 25, 2026, with $50,001 to $100,000 in assets and $100,001 to $500,000 in liabilities. Judge Brian T. Fenimore presides over the case. Robert Baran, Esq. represents the Debtor as legal counsel. TRUENOORD LTD: S&P Affirms 'B+' Long-Term ICR, Outlook Stable ------------------------------------------------------------- S&P Global Ratings affirmed its 'B+' long-term issuer credit rating on aircraft lessor TrueNoord Ltd. S&P also affirmed its 'B+' issue rating (recovery rating: '4'; rounded estimate: 40%) on TrueNoord Capital Designated Activity Co.'s senior unsecured notes. The stable outlook reflects S&P's expectation that TrueNoord will continue to grow its fleet while maintaining weighted average EBIT interest coverage of 1.1x-1.3x, debt to capital well below 80%, and funds from operations (FFO) to debt of 7%-9%. Aircraft lessor TrueNoord Ltd. continued to grow its fleet over the past year through various channels, and we expect additional growth over the next few years, aided in part by its recent placement of an inaugural order with Embraer S.A. S&P said, "We expect that TrueNoord's credit metrics will improve modestly through 2027, primarily because of higher lease rates (as the lease contracts it entered into through the pandemic continue to roll off). Partly offsetting this are the higher debt and interest expenses associated with its fleet growth plans. "We think TrueNoord will continue to expand its fleet through portfolio acquisitions, sale and leaseback transactions, and order book deliveries from Embraer. As of Dec. 31, 2025, TrueNoord's owned fleet consisted of 100 aircraft with a net book value (NBV) of about $1.4 billion. The portfolio was 46% regional aircraft, 37% turboprop aircraft, 14% crossover aircraft, and 3% wide-body aircraft (which the company views as noncore to its operations). "Additionally, the company placed an order with Embraer in October 2025 that included firm orders for 20 E195-E2 aircraft and purchasing rights for an additional 30 aircraft (20 E195-E2 and 10 E175-E1). We have a positive view of the order book since it enhances the visibility of the company's fleet growth and supports improvement in fleet characteristics by adding younger, new-technology aircraft to its fleet. "While there are inherent pricing and placement risks associated with maintaining an order book, we believe these risks are partially mitigated by TrueNoord's contractual deferral rights and optionality to swap between aircraft types, as well as its track record of appropriately managing asset and credit risks through cycles. "Our expectation is that TrueNoord's credit metrics will gradually improve over the next 12 months. We expect its revenue and profitability to improve gradually as the leases it entered into during the pandemic are re-leased or re-marketed at higher rates under favorable market conditions amid a persistent supply-demand imbalance. "Higher debt and interest expenses, we think, will partly offset this as the company continues to pursue opportunistic fleet growth. We therefore expect it to operate with EBIT interest coverage of 1.1x-1.3x, FFO to debt of 7%-9%, and debt to capital of 70%-75% through the fiscal year ending March 31, 2027. "We believe TrueNoord's fleet strategy will remain focused on the 50- to 150-seat aircraft market." Regional and turboprop aircraft, which are the asset types that TrueNoord focuses on, form a narrower segment of global aircraft leasing, and the customer base is smaller than that for large-jet aircraft lessors--although it's also a less competitive market. These aircraft types also have potential advantages, such as the ability to open new flight paths (facilitating growth for OEMs and airlines in newer markets) and often steady asset values through economic downturns. That said, the smaller customer base could also hurt liquidity in periods of weakness. The company's scale, profitability, and fleet characteristics are somewhat weaker than those of its higher-rated aircraft leasing peers. While it has grown over the last year, the company's fleet is still smaller than most rated aircraft lessors. In S&P's view, its smaller fleet and earnings base (due in part to higher interest costs) mean it's less able to withstand a stressed operating environment than its higher-rated peers. As of December 2025, the weighted average age of TrueNoord's fleet was 10 years, versus the industry average of 5-8 years. This is because of its growth strategy of acquiring midlife fleet aircraft in the secondary market. That said, S&P expects the company to lower the age of its fleet gradually as it sells some older aircraft and takes deliveries from the Embraer order book. TrueNoord's fleet has a weighted average remaining lease term of 4.7 years, which is also below the average range (5-8 years). In S&P's view, lower average lease terms could expose the company to re-leasing risks and lower fleet utilization during periods of weaker demand or higher oil prices. That said, the company has a track record of prudent underwriting and efficient fleet management through the cycle. The company's lessee relationships are broadly diversified, albeit with modest concentration in Porter Airlines. As of December 2025, TrueNoord had aircraft leases placed with 32 customers across 24 countries. Its top 10 lessees represented 54% of the aircraft portfolio NBV. However, Porter Airlines accounts for about 14% of that NBV, which represents moderate concentration risk, in our view. While about 43% of TrueNoord's lessees are flag carriers or have government ownership, it's also exposed to some airlines with lower credit quality, in S&P's view. For example, it had leases to Silver Airways and Azul, both of which went into bankruptcy in recent years although through efficient fleet management, TrueNoord did not incur losses that were material to its financial performance. Importantly, TrueNoord collects maintenance reserves (as opposed to end-of-lease collections) from over 70% of its lessees. This level--which is higher than the levels at most lessors focused on narrow-body and wide-body aircraft--partially protects the company from incurring significant losses in potential lessee defaults. S&P said, "We think TrueNoord will continue to benefit from constrained aircraft supply, although there is near-term geopolitical uncertainty. We believe supply constraints will likely persist for several years amid continued challenges, including engine shortages, constrained aviation supply chains, and substantial order backlogs." This would lead to continued strong demand for the company's regional aircraft. The war in the Middle East has led to constrained oil supply and elevated fuel prices. While TrueNoord's lessees have limited direct exposure to the region, increased fuel prices could pressure their earnings and liquidity--particularly for smaller airlines with weaker profitability. S&P'll keep an eye on whether second-order impacts--such as tightening fuel availability and potentially lower travel demand--might lead to any credit quality deterioration of the airlines. Additionally, a prolonged war in the Middle East could cause disruptions in the capital markets, limiting the lessors' ability to raise cost-efficient capital. S&P said, "TrueNoord, in our view, will maintain adequate liquidity to meet its needs related to debt servicing and predelivery payments of the Embraer order book. Our assessment of TrueNoord's liquidity reflects its stable cash generation, its existing cash balance ($173 million as of December 2025), and the access to undrawn capacity under its warehouse facilities ($400 million as of December 2025). It has a $36 million term loan maturity in December 2026, although it has an extension option. "In December 2025, the company extended the maturity of its warehouse facility to 2031 while lowering the interest cost, which we view positively. "We affirmed our issue rating on TrueNoord Capital DAC's senior unsecured notes. The '4' recovery rating reflects our expectation that the company will maintain a substantial amount of unencumbered assets. "The stable outlook indicates our expectation that TrueNoord will continue to grow its fleet while maintaining weighted average EBIT interest coverage of 1.1x-1.3x through fiscal 2027. We also expect the company to operate with debt to capital well below 80% and FFO to debt of 7%-9% through our forecast period. "We could lower the rating if EBIT interest coverage falls materially below 1.0x or if its debt-to-capital ratio increases to where it's above 82% on a sustained basis." S&P could also downgrade the company if: -- Profitability and cash flow are significantly below S&P's expectations because of lower leasing demand, -- The company significantly increases its debt to finance strategic investments or dividend payments to its financial sponsors, or -- Liquidity materially deteriorates. S&P said, "We could raise the rating if TrueNoord makes significant progress toward unencumbering its balance sheet while continuing to grow its fleet and diversify its lessee base. We could also raise the rating if the company maintains EBIT interest coverage above 1.3x and debt to capital below 82% on a sustained basis." VIAVI SOLUTIONS: Moody's Alters Outlook on 'Ba3' CFR to Stable -------------------------------------------------------------- Moody's Ratings affirmed Viavi Solutions Inc.'s (Viavi or the company) ratings, including the Ba3 corporate family rating, Ba3-PD probability of default rating, Ba1 secured rating, and B1 senior unsecured rating. The company's speculative grade liquidity (SGL) rating was upgraded to SGL-1 from SGL-2. The outlook was changed to stable from negative. "The change in outlook to stable reflects Viavi's strong operating performance and meaningful debt reduction. The company has delivered more than 10% organic growth, supported by strong demand from the data center ecosystem as well as aerospace and defense customers," said Moody's Analyst Justin Remsen. " Moody's projects leverage of around 5x for the fiscal year ending June 2026, down from over 8x just one year earlier and well ahead of Moody's prior expectations. Previously, Moody's expected leverage to trend toward the low-6x range by fiscal 2027; Moody's now anticipate leverage declining to the low-4x range by June 2027," added Remsen. RATINGS RATIONALE The Ba3 CFR reflects Viavi's improving operating performance and profitability, supported by growing exposure to the data center ecosystem, alongside a track record of solid free cash flow generation and limited capital intensity. These strengths are tempered by elevated leverage following recent debt funded acquisitions. Viavi holds strong positions in several niche markets, including optical security pigments used in anti-counterfeiting features in currency and optical components used in 3D sensing applications. The October 2025 acquisition of Spirent's High Speed Ethernet, Network Security, and Channel Emulation testing businesses expanded Viavi's Ethernet testing portfolio and increased its exposure to data center-related spending. Viavi's relatively small revenue scale can contribute to volatility given exposure to cyclical end markets. However, the current cycle is increasingly supported by demand tied to AI-driven infrastructure buildouts. Revenue has been volatile over the past few years, particularly within Network and Service Enablement (NSE), where a multi-quarter slowdown in wireless service provider spending weighed on results. Conditions improved in fiscal 2025 and strengthened further in fiscal 2026 as NSE benefited from acquisition contributions, including Spirent product lines and Inertial Labs, and stronger demand for lab, production, and field products tied to the data center ecosystem. The SGL-1 rating reflects very good liquidity supported by consistent free cash flow (FCF) generation and significant cash on hand. Moody's projects Viavi to generate about $150 million and $200 million of free cash flow in fiscal 2027 and 2028. Given the FCF generation and large cash balance, Moody's do not anticipate the company to rely on the $200 million ABL Revolver. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Viavi's ratings could be upgraded if the company demonstrates organic revenue growth above the mid-single digit percent level, FCF to debt above 15%, and debt to EBITDA is sustained below 5.0x. Viavi's ratings could be downgraded if debt to EBITDA is sustained above 6x (or 5x adding back stock based compensation), FCF to debt is below the high single digits percentages, or there is a deterioration of liquidity. Viavi Solutions Inc., based in Chandler, Arizona, provides network test, monitoring, and assurance instruments and software used by communications service providers, data center operators, network equipment manufacturers, enterprises, and aerospace and defense customers. The company also produces optical security pigments used in currency anti-counterfeiting applications and optical filters primarily used in 3D sensing modules for smartphone. The principal methodology used in these ratings was Diversified Technology published in September 2025. WHIRLPOOL CORP: Fitch Lowers LongTerm IDR to BB-, Outlook Negative ------------------------------------------------------------------ Fitch Ratings has downgraded Whirlpool Corporation's ratings, including the company's Long-Term Issuer Default Rating (IDR) to 'BB' from 'BB+' and unsecured debt ratings to 'BB' with a Recovery Rating of 'RR4' from 'BB+'/'RR4'. Fitch has affirmed Whirlpool's Short-Term IDR and commercial paper (CP) ratings and Whirlpool Europe B.V.'s CP rating at 'B'. The Rating Outlook is Negative. The downgrade reflects Fitch's expectation that margin recovery will take longer than expected. This would result in elevated leverage despite Whirlpool's recent issuance of common stock and mandatory convertible preferred stock to reduce debt. The Negative Outlook reflects continuing margin pressure from a weak demand environment, tariff impacts, and ongoing competitive pressures. These factors could delay Whirlpool's deleveraging trajectory, including execution of its pricing strategy and cost-reduction initiatives in the current environment. Higher oil prices and uncertainty regarding the potential effects of the ongoing conflict in Iran also contribute to the Outlook. Key Rating Drivers Margin Improvement Slower than Expected: Fitch expects EBITDA margins will settle between 7.5%-8.5% in 2026 and 8%-9% in 2027, modestly above 2025 levels but lower than Fitch's prior expectation of margins settling between 9%-10% in 2026 and 2027. The lower expectation is driven by continued weakness in housing activity and repair and remodel (R&R) spending, which Fitch now expects will be flat in 2026 rather than low-single digit growth. Fitch expects positive price/mix from execution of its pricing strategy and new product launches in 2025, as well as cost reduction initiatives to more than offset the negative impact of previously enacted tariffs. Higher oil prices will also pressure margins in the near term. An extended conflict in which oil prices remain around $100/barrel would be a significant supply shock, adding inflation and demand headwinds. Subdued Demand Environment: Fitch expects flat demand for Whirlpool's products in 2026 but forecasts revenue will grow 3.5%-4.5% organically, driven by meaningful product launches in 2025. Fitch's rating case forecast anticipates existing home sales, housing starts, and R&R spending will be flat in 2026 with weaker demand for larger discretionary R&R projects. The conflict in Iran threatens this outlook through multiple mechanisms. Higher oil prices are fueling renewed inflation risks. This could potentially delay Federal Reserve rate cuts and keep 30-year mortgage rates above 6%, compared to Fitch's previous expectations of 6% by the end of 2026. This elevated mortgage rate stickiness and volatility, combined with deteriorating consumer confidence indices, undermine buyer sentiment precisely as the spring selling season is in full swing. Leverage Remains Elevated: Whirlpool's leverage will decline after issuing $575 million mandatory convertible preferred stock and $522 million common stock to repay debt, although it will remain above the negative sensitivities for the 'BB' IDR through at least the middle of 2027. Fitch expects EBITDA leverage will be around 5x at YE2026 and below 4.5x at YE2027. This assumes margin improvement and further debt reduction in the next two years, including Fitch's assignment of 50% equity credit to the recently issued mandatory convertible preferred stock. Further deleveraging could be achieved from the sale of additional stake in Whirlpool of India, although Fitch's rating case forecast does not incorporate this. Adequate Financial Flexibility: Whirlpool has adequate liquidity to navigate the weak operating environment. The company raised $1.1 billion from a recent preferred stock and common equity issuance. This liquidity will repay the EUR500 million note maturing in November 2026 and short-term debt. Whirlpool also plans to enter into a new secured revolver to replace one maturing in May 2027. Fitch expects excess cash from the recent offering, FCF, and revolver availability to repay its EUR600 million senior notes maturing in November 2027. Fitch expects an FCF margin below 1% in 2026 and 1.2% to 1.7% in 2027, assuming capex of 2.5%-3.0% of revenues and steady dividends. Leading Market Positions: Whirlpool's strong market share positions in core markets lead to higher and more stable operating margins over time. Additionally, the diversity of the company's geographic exposure, end-market exposure and distribution are credit positives relative to more U.S. centric building products peers with more concentrated exposure to particular end markets or channels. Whirlpool is the world's leading home appliance manufacturer with strong market positions in key countries including the U.S., Brazil, the U.K., Canada, Italy, France, Mexico and India. Litigation Risk: Whirlpool has exposure to risks associated with ongoing litigation and tax matters. The company is defending against certain tax assessments by the Brazilian government and an investigation by the French Competition Authority. Unfavorable rulings or settlements in these cases could result in a material use of cash for Whirlpool and constrain discretionary cash flow or negatively affect credit metrics. Peer Analysis Whirlpool's leverage metrics are weaker than 'BB' category and investment grade building products companies, including Standard Building Solutions (BB/Stable), Gibraltar Industries (BB/Stable), MasterBrand, Inc. (BB+/Stable), Masco Corporation (BBB/Stable) and Fortune Brands Innovations, Inc. (BBB/Stable). Whirlpool's EBITDA margins are also lower than these peers, reflecting the competitive nature of the appliance industry. Whirlpool's scale, global diversity, end-market exposure and channel diversity are favorable compared with these peers. Fitch’s Key Rating-Case Assumptions - Organic revenues improve 3.5%-4.5% in 2026 and improves 2.5%-3.5% in 2027; - EBITDA margin of 7.5% to 8.5% in 2026 and 8% to 9% in 2027; - FCF margin 0.5%-1% in 2026 and 1%-2% in 2027; - 2026 senior note maturity and short-term debt repaid from preferred stock and equity issuance; - Whirlpool's mandatory convertible preferred stock is assigned 50% equity credit; - Capex of 2.5%-3% of revenues and no dividend increases in 2026 and 2027. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bbb, Lower), Sector Characteristics (bbb-, Moderate), Market and Competitive Positioning (bbb+, Moderate), Diversification and Asset Quality (bbb, Moderate), Company Operational Characteristics (bbb+, Moderate), Profitability (bb-, Moderate), Financial Structure (bb-, Higher), and Financial Flexibility (bbb-, Higher). - The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2025, 40% for the forecast year 2026, 40% for the forecast year 2027 and 10% for the forecast year 2028. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'a' results in no adjustment. - The SCP is 'bb'. To derive the IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'BB'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage sustained above 4.3x; - (CFO-capex)/debt sustained below 6%; - FCF margin sustained below 1%. Factors that Could, Individually or Collectively, Lead to an Outlook Revision to Stable - Improvement in margins and cash flow, leading to EBITDA leverage at or below 4.3x or FCF margin trending towards 1.5%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage sustained below 3.8x; - (CFO-capex)/debt sustained above 8%; - FCF margin above 2%. Liquidity and Debt Structure Whirlpool had adequate liquidity as of Dec. 31, 2025, with $669 million in cash and more than $3.1 billion of borrowing capacity under its revolving credit agreement that matures in May 2027. Approximately $644 million of consolidated cash was held by subsidiaries in foreign countries. Whirlpool expects to enter into a new senior secured revolving credit facility to replace the existing $3.5 billion unsecured revolving credit facility. Fitch expects the new credit facility will provide a lower borrowing capacity than the existing facility to better align with Whirlpool's anticipated liquidity needs given the divestiture of its European operations and the sale of a majority stake in Whirlpool of India. The company has meaningful debt maturities in the next three years, including EUR500 million of senior notes maturing in November 2026, EUR600 million maturing in November 2027 and EUR500 million maturing in 2028. The recent issuance of preferred stock and common equity addresses its 2026 maturity. Fitch expects FCF, cash on hand and revolver availability to support the repayment of its $703 million senior notes maturing in November 2027. Issuer Profile Whirlpool Corp. is a global leader in the manufacturing, marketing and distribution of home appliances. The company's products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers and other small domestic appliances. Summary of Financial Adjustments Per Fitch's Corporate Hybrids Treatment and Notching Criteria, Fitch has assigned 50% equity credit to Whirlpool's $575 million mandatory convertible preferred stock. This assignment reflects the subordination of the preferred stock relative to the company's unsecured debt, the lack of covenants, the mandatory conversion in three years, and the ability to defer coupon payments. The 50% equity credit also reflects the cumulative nature of the deferred dividends and the potential that Whirlpool may need to settle a portion of the dividend in cash. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Whirlpool Corp. ESG Considerations Fitch has changed Whirlpool's ESG Relevance Score to '2' from '4' for Customer Welfare - Fair Messaging, Privacy & Data Security because Fitch believes the risk of potential legal claims in relation to the role played by a Hotpoint-brand appliance in the Grenfell Tower fire in the UK has lessened. Whirlpool has reached an agreement with its insurers regarding coverage for all likely future financial obligations arising out of this incident. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Whirlpool Europe B.V. senior unsecured ST B Affirmed B Whirlpool Finance Luxembourg S.a.r.l. senior unsecured LT BB Downgrade RR4 BB+ Whirlpool Corp. LT IDR BB Downgrade BB+ ST IDR B Affirmed B senior unsecured LT BB Downgrade RR4 BB+ senior unsecured ST B Affirmed B Whirlpool EMEA Finance S.a r.l. senior unsecured LT BB Downgrade RR4 BB+ XCEL BRANDS: Secures $500,000 Cash Collateral for Term Loan A ------------------------------------------------------------- Xcel Brands, Inc. disclosed in a regulatory filing that it entered into the Sixth Amendment to Loan and Security Agreement, by and among Xcel, the Credit Parties, each Lender party under the Loan and Security Agreement dated as of December 12, 2024, and FEAC Agent, LLC, a Delaware limited liability company, as administrative agent and collateral agent for the Lenders. Pursuant to the Amendment: (i) Xcel irrevocably authorized the Administrative Agent to transfer up to $500,000 from the Blocked Account (as defined in the Loan and Security Agreement) to an account maintained by the Administrative Agent to be held by the Administrative Agent as cash collateral securing the Obligations (as defined in the Loan and Security Agreement); (ii) Xcel irrevocably authorized the Administrative Agent to: (a) apply all or any portion of the Sixth Amendment Cash Collateral to repay the Term Loan A, or (b) return all or any portion of the Sixth Amendment Cash Collateral to Xcel, in each case in the Lenders' sole discretion; (iii) the liquid asset covenant requirement was reduced to: (a) at all times prior to the repayment in full of the First Out Obligations (as defined in the Loan and Security Agreement), $500,000 minus that amount of Sixth Amendment Cash Collateral used to repay Term Loan A, and (b) at all times after the repayment in full of the First Out Obligations, $0; and FEAC AGENT, LLC may be reached through: Michelle Handy Senior Managing Director First Eagle Alternative Credit, LLC A full text copy of the Sixth Amendment to Loan and Security Agreement is available at https://tinyurl.com/3vfa5ecb About Xcel Brands New York, N.Y.-based Xcel Brands, Inc. is a media and consumer products company engaged in the design, licensing, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as social commerce. New York, N.Y.-based Marcum LLP, the Company's auditor since 2021, issued a "going concern" qualification in its report dated May 27, 2025, attached to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of September 30, 2025, the Company had $40.5 million in total assets, $23.9 million in total liabilities, and $16.6 million in total stockholders' equity. [^] BOOK REVIEW: A History of the New York Stock Market ------------------------------------------------------- Author: Robert Sobel Publisher: Beard Books Soft cover: 395 pages List Price: $34.95 https://ecommerce.beardbooks.com/beardbooks/the_big_board.html First published in 1965, The Big Board was the first history of the New York stock market. It's a story of people: their foibles and strengths, earnestness and avarice, triumphs and crash-and-burns. It's full of entertaining anecdotes, cocktail-party trivia, and tales of love and hate between companies and investors. Early investments in North America consisted almost exclusively of land. The few securities holders lived in cities, where informal markets grew, with most trading carried out in the street and in coffeehouses. Banking, insurance, and manufacturing activity increased only after the Revolution. In 1792, 24 prominent New York businessmen, for whom stock- and bond-trading was only a side business, met under a buttonwood tree on Wall Street and agreed to trade securities on a common commission basis. Five securities were traded: three government bonds and two bank stocks. Trading was carried out at the Tontine Coffee-House in a call market, with the president reading out a list of stocks as brokers traded each in turn. The first half of the 19th century was heady for security trading in New York. In 1817, the Tontine gave way to the New York Stock and Exchange Board, with a more organized and regulated system. Canal mania, which peaked in the late 1820s, attracted European funds to New York and volume soared to 100 shares a day. Soon, the railroads competed with canals for funding. In the frenzy, reckless investors bought shares in "sheer fabrications of imaginative and dishonest men," leading an economist of the day to lament that "every monied corporation is prima facia injurious to the national wealth, and ought to be looked upon by those who have no money with jealousy and suspicion." Colorful figures of Wall Street included Jay Gould and Jim Fisk, who in 1869 precipitated one of the worst panics in American financial history by trying to corner the gold market. Almost lynched, the two were hauled into court, where Fisk whined, "A fellow can't have a little innocent fun without everybody raising a halloo and going wild." Then there was Jay Cooke, who invented the national bond drive and, practically unaided, financed the Union effort in the Civil War. In 1873, however, faulty judgement on railroad investments led to the failure of Cooke & Co. and a panic on Wall Street. The NYSE closed for ten days. A journalist wrote: "An hour before its doors were closed, the Bank of England was not more trusted." Despite J. P. Morgan's virtual single-handed role in stemming the Knickerbocker Trust panic of 1907, on his death in 1913, someone wrote "We verily believe that J. Pierpont Morgan has done more harm in the world than any man who ever lived in it." In the 1950s, Charles Merrill was instrumental in changing this attitude toward Wall Streeters. His firm, Merrill Lynch, derisively known in some quarters as "We, the People" and "The Thundering Herd," brought Wall Street to small investors, traditionally not worth the effort for brokers. The Big Board closes with this story. Asked by a much younger man what he thought stocks would do next, J.P. Morgan "never hesitated for a moment. He transfixed the neophyte with his sharp glance and replied 'They will fluctuate, young man, they will fluctuate.' And so they will." Robert Sobel died in 1999 at the age of 68. A professor at Hofstra University for 43 years, he was a prolific historian of American business, writing or editing more than 50 books. This book may be ordered by calling 888-563-4573 or by visiting www.beardbooks.com or through your favorite Internet or local bookseller. ********* On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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