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260611.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, June 11, 2026, Vol. 30, No. 162 Headlines 1440 FOODS: Moody's Cuts CFR to Caa2 & Alters Outlook to Negative 20 WVC: Seeks to Hire AM LAW PLLC as Attorney 25350 PLEASANT VALLEY: Gets OK to Use Cash Collateral Until June 30 AAA GARAGE: Gets Interim OK to Use Cash Collateral AAM EQUIPMENT: Seeks to Extend Plan Exclusivity to Aug. 3 ACADEMY OF VOLLEYBALL: Cash Collateral Hearing Set for June 18 ACI ROVER: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable ALFASPIRE INC: Hires Cava Law LLC as General Bankruptcy Counsel AMBAR TRANSPORTATION: Gets Interim OK to Use Cash Collateral AMERICAN AIRLINES: Moody's Cuts Rating on Sr. Secured Debt to Ba3 ANNIE EYELASH: Seeks to Hire Kamini Fox PLLC as Counsel APPTECH PAYMENTS: All Five Key Proposals Passed at Annual Meeting AQUA RESOLUTION: Gets Interim OK to Use Cash Collateral ARCHBISHOP OF BALTIMORE: Committee Files Restructuring Plan ARCHITECTURAL GLAZING: Hires Patrick Rettig as Professional ASPIRING SOLUTIONS: Gets Interim OK to Use Cash Collateral ATI INC: Moody's Affirms 'Ba2' CFR & Alters Outlook to Positive AURORA FUEL: Gets Interim OK to Use Cash Collateral BASECOAT ON FIFTH: Gets Interim OK to Use Cash Collateral BASIC WHOLESALE: Gets Interim OK to Use Cash Collateral BECKY'S PET CARE: Gets Interim OK to Use Cash Collateral BLAKE EMERGENCY: Gets Final OK to Use Cash Collateral CALIFORNIA RESOURCES: Fitch Hikes IDR to 'BB-', Outlook Stable CAMPBELL REALTY: Gets Extension to Access Cash Collateral CAROLINA CLEANING: Gets Interim OK to Use Cash Collateral CARR'S PLUMBING: Seeks to Extend Plan Exclusivity to July 6 CELEST INVESTMENTS: Hires Soffan Law PC as a Bankruptcy Counsel DAX INTERNATIONAL: Gets Interim OK to Use Cash Collateral DIOCESE OF EL PASO: Seeks to Extend Plan Exclusivity to Oct. 5 DORMAN PRODUCTS: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable EEE DEVELOPMENT: Bonds Ellis Represents Rock River Secured Lenders ELK GROVE: Fitch Assigns 'BB-(EXP)' LongTerm IDR, Outlook Positive F-STAR SOCORRO: Seeks to Extend Plan Exclusivity to Aug. 31 FAT BRANDS: Accord with WBS Ad Hoc Group, UCC & Noteholders OK'd FIREHOUSE GRILL: Seeks to Extend Plan Exclusivity to Aug. 24 FS KKR CAPITAL: Fitch Rates $900MM 7.5% New Unsec. Notes 'BB+(EXP)' GALINDO EMPIRE: Gets Interim OK to Use Cash Collateral GENERATIONS ON 1ST: Affiliate Gets Extension to Use Cash Collateral GOODYEAR TIRE: Fitch Assigns 'BB-' Rating on Sr. Unsecured Notes GREEN TREE: Court Extends Cash Collateral Access to July 7 HAINES PROPERTIES: Hires Brooks Gelpi Haase LLC as Counsel HERNAN REYES: Court Extends Cash Collateral Access to June 16 HIGHPEAK ENERGY: Fitch Alters Outlook on 'B' IDR to Negative HUBBARD INGREDIENTS: Hires Sader Law Firm LLC as Attorney INFINITE GLOW: Gets Final OK to Use Cash Collateral INOTIV INC: Davis Polk and Haynes Represent 1L Ad Hoc Group IQVIA INC: Moody's Rates New Senior Unsecured Notes 'Ba2' J KRUZE INVESTMENTS: Gets Final OK to Use Cash Collateral JAGUAR HEALTH: Exchanges Series Q Preferred for Common Stock JJ STUCKEY: Gets Interim OK to Use Cash Collateral KALAMAZOO CANDLE: Gets Interim OK to Use Cash Collateral KINETIC SECURED: Fitch Gives 'BB-(EXP)sf' Rating on Class C Notes KOMAX LLC: Gets Final OK to Use Cash Collateral KORN FERRY: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable LENA BRANDS: Hires Pierson Ferdinand LLP as Counsel LIQUOR WORLD: Court OKs Continued Use of Cash Collateral MERRICK WOODWORKING: Gets Final OK to Use Cash Collateral MII AVIATION: Wins Interim Cash Collateral Access MILAN PINES: M. Shapiro Real Estate Appointed as Receiver MIRROR LAKE: Plan Exclusivity Period Extended to Aug. 14 NICK'S PIZZA: Court Extends Cash Collateral Access to July 27 NOBLE FINANCE II: Fitch Assigns 'BB-' Rating on Sr. Unsecured Notes OSCAR ACQUISITIONCO: Moody's Affirms 'Caa3' CFR, Outlook Negative PALMAIRE AVE: Hires Potenza Baran & Gillespie P.C. as Counsel POINTCLICKCARE TECHNOLOGIES: Moody's Affirms 'B3' Term Loan Rating PRIME LIMITED: Hires SMB Accounting Inc. as Accountant PROGRESS TELECOMM: Hires Biggs Law Firm PLLC as Attorney QUANTUM CORP: Three-Part $100M Deal Targets Debt-Free Balance Sheet REEL TRIMS: Gets Interim OK to Use Cash Collateral SAKS GLOBAL: Gets Court Nod on Reorganization Plan, Eyes Emergence SHAWNEE OIL: Midfirst Wants Aurora Management's Baker as Receiver SLX - I DRIVE: Court OKs Interim DIP Loan From Bay Point Advisors SMITTY'S LAND: Hires Allen Jones & Giles PLC as Attorney SPARHAWK LLC: Gets Interim OK to Use Cash Collateral Thru June 20 SPARTAN AUTOMOTIVE: Seeks 90-Day Extension of Plan Filing Deadline SPIRIT AVIATION: Cohen Weiss Represents ALPA, IAM and TWU 570 STILLWATER HOLDINGS: Hires Joseph W. Dicker P.A. as Counsel STUCKEY PREMIER: Gets OK to Use Cash Collateral Until June 30 SUMMER FUN: Gets Interim OK to Use Cash Collateral TRI CITY HOTELS: Gets Final OK to Use Cash Collateral TWENTY EIGHT: Unsecureds Will Get 10% of Claims over 48 Months VENTURE GLOBAL: Fitch Alters Outlook on 'B+' LongTerm IDR to Stable WASTE PRO: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable WATLOW ELECTRIC: Moody's Rates New Secured First Lien Loans 'B1' WHIRLPOOL CORP: Fitch Rates Second Lien Notes 'BB-' WISDOM DENTAL: Gets Extension to Access Cash Collateral WORTHINGTON STEEL: Fitch Rates Sr. Secured Notes $700MM ZOE CENTER: Seeks to Hire Stone & Baxter LLP as Counsel [] ATTOM Flags High Foreclosure Rates in Q1 2026 Housing Report [] LegalShield Shows South at Highest Foreclosure Level Since 2019 [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 1440 FOODS: Moody's Cuts CFR to Caa2 & Alters Outlook to Negative ----------------------------------------------------------------- Moody's Ratings downgraded the ratings of 1440 Foods TopCo, LLC (1440 Foods) including its Corporate Family Rating to Caa2 from Caa1, Probability of Default Rating to Caa2-PD from Caa1-PD and the senior secured first lien term loan rating to Caa2 from Caa1. The outlook was changed to negative from stable. The downgrades reflect Moody's views that weakening liquidity, a more challenging operating environment and increased execution risk are elevating leverage and leading to negative free cash flow that increases the likelihood of a distressed exchange or other debt restructuring. Operating earnings weakened meaningfully over the last 12 months ended March 31, 2026, reflecting a more competitive and promotional environment in the protein enhanced nutrition categories. Newer brands are intensifying competition and contributing to market share losses, particularly at FitCrunch, weaker volumes and reduced pricing power. The company increased promotions in some retail channels to support volumes, but these actions have not offset competitive pressures and contributed to margin compression. The company's product portfolio remains concentrated in protein bars, powders and ready-to-drink shakes. Although the protein enhanced nutrition sector continues to benefit from strong consumer demand and increasing household penetration, the industry remains highly fragmented and competitive. While the strategic shift toward in-house manufacturing is expected to improve margins and operating flexibility over time, execution risks remain elevated as 1440 Foods transitions production of its legacy Pure Protein, MET-Rx, and Body Fortress brands to the Jeffersonville, Indiana facility. Revenue and earnings are down and below Moody's prior expectations, driven by soft FitCrunch performance, commodity inflation, and operational challenges associated with the manufacturing transition. The Jeffersonville ramp is taking longer than expected driven by qualification delays and lower than expected yields, which increased costs, pressured fill rates, and delayed the realization of expected savings. Although production improved in March and April, with April output reaching 19.3 million bars and yield improving to around 91%, the recovery remains dependent on good execution. Profitability is also being negatively affected by elevated commodity cost inflation, particularly for whey protein, which increased significantly year over year. Although the company implemented pricing actions, there is a timing lag between higher input costs and full price realization, resulting in weaker earnings and cash generation. The company's ability to fully pass through higher input costs remains uncertain given the competitive environment. The downgrades also reflect weak liquidity and reduced financial flexibility. Liquidity tightened due to lower operating earnings, working capital needs and negative free cash flow. The cash needs led to reliance on a new $40 million sponsor provided bridge loan with a short maturity in July 2026 to fund operations and debt service. The use of a short-dated instrument increases refinancing risk and the company's debt including accumulating pay-in-kind interest. Moody's do not anticipate the company's cash and remaining revolver availability will be sufficient to repay the bridge loan without additional external capital. Moody's expects debt-to-EBITDA leverage that exceeded 15x (incorporating Moody's adjustments) as of March 2026 to remain very high, reflecting both the leveraging FitCrunch acquisition and weaker earnings. At the same time, negative free cash flow is leading to additional borrowings. RATINGS RATIONALE 1440 Foods' ratings reflect the company's small scale, with revenue below $650 million and its concentrated exposure to the highly competitive protein bar, protein powder, and ready-to-drink (RTD) categories, as well as its very high leverage, negative free cash flow, weak liquidity, and elevated risk of a distressed exchange or other debt restructuring. The protein-enhanced nutrition category continues to benefit from strong consumer demand and increasing household penetration, but has become increasingly competitive, with higher levels of promotional activity and new entrants contributing to market share fragmentation. 1440 Foods faces pressure from both established and emerging competitors, particularly in protein bars, where pricing and promotional activity increased and consumer preferences continue to evolve. The company's ratings are further constrained by exposure to volatile raw material costs, particularly whey protein, which contributed to significant margin pressure over the past 12 months. While the company implemented several price increases, there is an inherent lag in recovering higher input costs, and the ability to fully offset cost inflation will be challenging in an environment of cautious consumer spending and high promotional activity. 1440 Foods also faces execution risk related to its vertical integration strategy, including the ramp-up of the Jeffersonville facility. Although the facility is expected to generate meaningful cost savings and improve margins over time, delays in achieving full production efficiency are contributing to higher costs and operational challenges. Leverage is very high, driven in part by the acquisition of FitCrunch in late 2024, as well as recent earnings pressure following FitCrunch market share losses. Moody's expects debt-to-EBITDA leverage to remain above 15x over the next 12 months. The company's ability to de-leverage depends on successful execution of pricing actions, realization of cost savings, and stabilization of volumes. The ratings are supported by 1440 Foods' portfolio of established brands, particularly Pure Protein, and its broad distribution across key retailers such as Walmart, Costco, and Amazon. If successfully executed, pricing actions and vertical integration benefits could support improved profitability over time. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The negative outlook reflects 1440 Foods' weak liquidity and the execution risk to implement an operational turnaround, generate positive free cash flow and reduce leverage. The ratings could be upgraded if the company demonstrates sustained organic revenue growth and improvement in earnings such that EBITDA is sufficient to generate consistent positive free cash flow. The company would also need to maintain adequate liquidity. The ratings could be downgraded if the company is unable to quickly improve earnings, the potential for a distressed exchange or other default increases, or estimated recovery values weaken. The principal methodology used in these ratings was Consumer Packaged Goods 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. 1440 Foods is a performance and active nutrition company headquartered in New York City. The company operates a focused portfolio of brands including Pure Protein (nutrition bars and ready-to-drink products), FitCrunch (high-protein bars), Body Fortress (efficacy-driven protein powders), and MET-Rx (high-performance meal replacements). These brands are available across major retailers in the US and Canada, such as Walmart, Costco, Amazon, and Kroger. The company is owned by 4x4 Capital and Bain Capital. Pro forma for the FitCrunch acquisition, 1440 Foods generated approximately $647 million of net sales for the last 12 months ending March 31, 2026. 20 WVC: Seeks to Hire AM LAW PLLC as Attorney --------------------------------------------- 20 WVC LLC dba CG Tax Certificates LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ AM Law PLLC as attorney. The firm's services include: a. advising the Debtor with respect to its powers, duties, and obligations as debtor-in-possession under Chapter 11; b. preparing and filing schedules, statements of financial affairs, and all other required documents; c. representing the Debtor at the initial debtor interview, the Section 341 meeting of the creditors, the initial case management conference, all hearings, and all other proceedings. d. assisting the Debtor in the formulation, negotiation, and confirmation of a Subchapter V of reorganization; e. reviewing and objecting to claims as appropriate; f. advising the Debtor regarding compliance with the U.S. Trustee's operating guidelines and reporting requirements; and g. performing all other legal services necessary and appropriate in connection with this case, including any adversary proceedings. The firm will be paid at these rates: Gary M. Murphree, Esq. $400 per hour Brandy Abreu, Esq. $400 per hour Cristina Figarola, Paralegal $175 per hour Prior to the commencement of this case, the Debtor paid the firm an initial retainer in the amount of $15,000 in the aggregate, consisting of a fee retainer of $13,0000 and a cost retainer of $2,000 (which includes the Chapter 11 filing fee of $1,738). The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Murphree 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: Gary M. Murphree 10743 SW 104th Street Miami, FL 33176 Tel: (305) 441-9530 Email: pleadings@amlaw-miami.com gmm@amlaw-miami.com About 20 WVC LLC 20 WVC, LLC, doing business as CG Tax Certificates, LLC, filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 26-16038) on May 8, 2026. At the time of the filing, the Debtor reported between $50,001 and $100,000 in both assets and liabilities. 25350 PLEASANT VALLEY: Gets OK to Use Cash Collateral Until June 30 ------------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Virginia authorized 25350 Pleasant Valley, LLC to continue using cash collateral through June 30. The cash collateral is subject to the security interests of Northwest Federal Credit Union and MainStreet Bank. The Debtor may use the funds in accordance with the approved budget, provided total expenditures do not exceed the budgeted gross allowance by more than 10%. As adequate protection, the Debtor must make payments to Northwest Federal Credit Union and MainStreet Bank as provided in the budget. The order notes that Northwest Federal Credit Union is receiving less than the amount contemplated under its forbearance agreement and reserves all rights despite accepting the reduced payments. The lenders were also granted replacement liens on the Debtor's post-petition assets and their proceeds, limited to any decline in the value of their cash collateral interests. Events of default include conversion of the case to Chapter 7, dismissal of the bankruptcy case, or the Debtor's failure to make required budgeted payments. If a default occurs and is not cured within ten business days, where curable, the Debtor's authority to use cash collateral automatically terminates without further court order. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/lUJE1 from PacerMonitor.com. About 25350 Pleasant Valley, LLC 25350 Pleasant Valley, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Vir. Case No. 23-11983) with $500,001 to $1 million in both assets and laibilities. Judge Hon. Klinette H Kindred oversees the case. The Debtor is represented by: John P. Forest, II Tel: 703-691-4940 Email: john@forestlawfirm.com AAA GARAGE: Gets Interim OK to Use Cash Collateral -------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, entered an amended interim order authorizing AAA Garage Storage Solutions, Inc. to use cash collateral during its Chapter 11 Subchapter V case. Under the order, the Debtor is authorized to use cash collateral solely for ordinary and necessary business operating expenses in accordance with an approved budget. The interim authorization remains effective through August 6, unless extended by court order. The Debtor is prohibited from using cash collateral to pay insiders or credit card obligations unless further court approval is obtained. As a condition of using cash collateral, the Debtor must operate within the approved budget and may not exceed total budgeted expenditures by more than 10% without either court approval or First Internet's written consent. Any revenue exceeding the amounts necessary to fund budgeted expenses must be segregated and held in a debtor-in-possession cash collateral account. As adequate protection to First Internet and other secured creditors, the court granted them replacement liens on post-petition assets and proceeds to the same extent and priority as their prepetition liens, excluding Chapter 5 avoidance actions and related proceeds. In addition, the Debtor must make monthly adequate protection payments of $4,300 to First Internet, maintain the business as a going concern, preserve insurance coverage on collateral, and provide financial information and access to collateral inspections upon reasonable request. Events of default include failure to make adequate protection payments, maintain insurance, pay utilities, comply with the order, continue business operations, or preserve sufficient operating cash. Upon a default, the Debtor has seven days to cure the issue or obtain First Internet's consent to continue using cash collateral. A continued hearing on the cash collateral motion is scheduled for August 6 and the Debtor must file a supplemental report by July 16, with responses due by July 23. About AAA Garage Storage Solutions Inc. AAA Garage Storage Solutions, Inc, operating as Organized Garage Solutions, is a Pasadena, California-based company that designs and installs residential garage organization systems. Founded around 2014, it provides custom cabinetry, shelving, slatwall systems, overhead storage, and garage floor coatings through in-home design consultations and full installation services. The company serves homeowners across the greater Los Angeles area, with operations centered on garage optimization projects aimed at improving storage efficiency and usable space. AAA Garage Storage Solutions sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 26-13911) on April 22, 2026, with up to $500,000 in assets and up to $10 million in liabilities. Varand Zadoorian, president of AAA Garage Storage Solutions, signed the petition. Judge Vincent P. Zurzolo oversees the case. Clifford Bordeaux, Esq., at Bordeaux Law, P.C., represents the Debtor as bankruptcy counsel. AAM EQUIPMENT: Seeks to Extend Plan Exclusivity to Aug. 3 --------------------------------------------------------- AAM Equipment, LLC asked the U.S. Bankruptcy Court for the Middle District of Alabama to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to Aug. 3 and Oct. 2, 2026, respectively. The Debtor explains that any Chapter 11 plan must be accompanied by a disclosure statement that provides creditors and the Court with "adequate information." The Debtor states that for the company to meet its burden of providing adequate information to creditors and formulating a feasible plan, it will need to know with reasonable certainty how much its creditors are owed and whether those creditors have collateral or are entitled to priority. Further, the Debtor anticipates selling some equipment prior to confirmation of its plan; therefore, it needs more time to file a plan. AAM Equipment LLC is represented by: Stuart H. Memory, Esq. Memory Memory & Causby, LLP P.O. Box 4054 Montgomery, AL 36103 Tel: (334) 834-8000 Email: smemory@memorylegal.com About AAM Equipment LLC AAM Equipment, LLC, is engaged in renting heavy construction equipment. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ala. Case No. 26-80129) on Feb. 2, 2026. In the petition signed by Aaron Moody, owner, the Debtor disclosed up to $50,000 in assets and up to $10 million in liabilities. Judge Christopher L. Hawkins oversees the case. Stuart Memory, at Memory Memory and Causby LLP, is serving as the Debtor's legal counsel. ACADEMY OF VOLLEYBALL: Cash Collateral Hearing Set for June 18 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California, San Francisco Division, is set to hold a hearing on June 18 on Academy of Volleyball, Inc.'s motion to continue using cash collateral. The Debtor previously received approval to use cash collateral under a prior stipulation with the U.S. Small Business Administration and court orders, with adequate protection payments of $731 per month currently being made. The Debtor said it needs continued access to cash collateral to fund operations and avoid a shutdown that could result in the loss of students, employees, and revenue needed to support its Chapter 11 reorganization. To justify continued use, the Debtor proposes to provide adequate protection to secured creditors in the form of ongoing monthly payments and replacement liens on post-petition assets. The creditors affected include a wide range of merchant cash advance lenders, funding companies, state tax authorities, and the U.S. Small Business Administration, all of which assert security interests in the Debtor's receivables and cash flow through UCC filings and tax liens. A copy of the motion is available at https://urlcurt.com/u?l=PICT5H from PacerMonitor.com. About Academy of Volleyball Inc. Academy of Volleyball, Inc. provides youth and junior volleyball training and competitive programs from its headquarters in West Redwood City, California, with additional facilities in North Burlingame. The club offers girls and boys teams, summer and winter camps, clinics, private lessons, beach volleyball programs, and college recruiting resources, serving athletes typically aged 10 through 18. The club's programs help athletes build technical skills, develop mental toughness, and learn teamwork and composure in a competitive, team-driven environment. Facilities include multiple courts, a performance lab, and year-round practice spaces designed to support skill advancement and athlete performance. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 26-30265) on March 26, 2026. In the petition signed by Daniele Desiderio, CEO, the Debtor disclosed $427,076 in total assets and $3,000,664 in total liabilities. Judge Hannah L. Blumentstiel oversees the case. Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger, represents the Debtor as bankruptcy counsel. ACI ROVER: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable ---------------------------------------------------------- Fitch Ratings has assigned ACI Rover Parent, LLC (ACI Rover) a first-time Long-Term Issuer Default Rating (IDR) of 'BB'. Fitch has also assigned ACI Rover's proposed senior secured Term Loan B a 'BB+' rating with a Recovery Rating of 'RR2'. The Rating Outlook is Stable. The ratings and Outlook reflect the strategic importance of the Rover Pipeline for Appalachian producers in a takeaway-constrained market with key interconnections with major transmission lines which provide shippers with connectivity to multiple demand end markets. These strengths are balanced by recontracting risk associated with the underlying pipeline capacity, counterparty credit quality, and the potential for structural subordination of the rated debt to subsidiary-level obligations. Key Rating Drivers Strategically Important Asset: Rover's direct interconnections to ANR Pipeline, Panhandle Eastern, Trunkline and Vector provide Appalachian producers access to premium demand markets in the Midwest, Canada, and the U.S. Gulf Coast. This downstream optionality, combined with competitive transportation rates and low maintenance-cost profile supports durable shipper economics and long-term recontracting potential. Fitch expects alternative takeaway capacity from Appalachia to remain constrained, because persistent regulatory and environmental challenges are limiting pipeline development in the region. Fitch expects structural demand-pull tailwinds from data center proliferation, gas-fired power generation growth, and expanding LNG export feedgas requirements to support long-term utilization. These factors should also incentivize shippers to exercise their existing contract extension options. Recontracting Risk: As a supply-push pipeline, Rover faces inherently greater recontracting risk than demand-pull infrastructure. Producer shippers retain optionality to redirect volumes to the most attractive market at the time of contract expiration, which could include in-basin demand. Approximately 80% of Rover's contracted revenue is scheduled to roll-off in 2032-2033 across a concentrated group of shippers. Contracts with Ascent Resources (33% of take-or-pay revenue), Antero Resources (20%), Expand Energy (15%), and EQT (12%) reach maturity during that period. Ascent, Antero, and Expand hold 20-year contract extension options. Fitch views exercise of these options as highly likely because Rover serves as critical takeaway infrastructure in the capacity-constrained Appalachia Basin. Fitch also views Rover's largest shippers contracted firm transports are also high relative to their production. Two recent new firm transportation take-or-pay contracts with Ascent and Range Resources further support recontracting prospects and increase overall cash flow visibility. Counterparty Credit Profile: Rover's volume-weighted average counterparty credit rating is 'BB+', an improvement from an average rating of 'BB-' in 2018. However, counterparty credit quality continue to constrain the rating. A large proportion of Rover's committed volumes are contracted with shippers whose production scale and leverage metrics are in line with investment grade peers. However, these strengths are balanced by higher gathering, processing, and firm transportation expenses relative to peers, rendering netbacks vulnerable to declining prices. Stable Cash Flows: Approximately 90% of Rover's 3.425 Bcf/d capacity is subscribed under long-term, fixed-fee, take-or-pay contracts with major Marcellus and Utica producers. This provides a high degree of cash flow predictability. The weighted average remaining contract life is approximately 11 years, excluding extension options. Nearly all of Rover's contracted volumes are still flowing at initial negotiated rates, and the pipeline has operated at 97% average utilization since 2021. Stable Credit Metrics: Fitch forecasts ACI Rover's leverage to be 5.9x at transaction close, declining toward the mid 5x range as EBITDA benefits from recent contract extensions and demand-pull projects along Rover's footprint. Rover has identified a backlog of over 1.5 Bcf/d in demand-pull interconnect projects, which are expected to be either reimbursed upfront by shippers or funded via capital recovery fees. Fitch expects that ACI Rover's capital commitments for growth projects will be financed through a combination of incremental borrowings and cash-equity contributions from the Sponsor, resulting in leverage of around 5.7x over the forecast period. HoldCo Credit Considerations: Rover's cash flows are stable and predictable. However, operating expenses and potential debt obligations are prioritized over ACI Rover distributions. This creates structural subordination risk, but ACI Rover's governance limits it. The company must fund capital projects with capital contributions or third-party financing, not operating cash flows. Project-level debt above $500 million requires the consent of its owner, Ares Core Infrastructure Fund (Ares). Fitch does not assume asset-level financings in its base case. Fitch views structural subordination risk as low given governance protections and Ares' preference for equity injections over leverage. Peer Analysis Meade Pipeline Co LLC (Meade; BB+/Stable) is a close peer for ACI Rover. Both hold equity interests in supply-push natural gas pipelines that connect Appalachian production with major demand markets. The main differences are their ownership structures and customer credit quality. Meade holds an undivided joint interest in the Central Penn Line and leases it to Transco (BBB+/Positive). Transco is responsible for all operating and maintenance costs associated with the pipeline and pays a fixed fee to Meade, insulating it from volumetric, commodity price and operational risks. By contrast, ACI Rover holds an indirect minority equity interest in Rover. Long-term take-or-pay contracts from shippers with a weighted average counterparty rating of 'BB+' support Rover's cash flows. Meade's stronger business profile results from its direct asset ownership and investment grade counterparty rating. This supports its higher rating, given the similarity in leverage profiles. WhiteWater Matterhorn Holdings, LLC (WhiteWater; BB/Negative) is a closer structural analog to ACI Rover. The key credit difference is WhiteWater's structural subordination to $2.2 billion of OpCo debt, whereas Rover is currently unlevered. Rover and WhiteWater have similar governance protections. However, WhiteWater benefits from control provisions associated with its majority ownership and has a stronger weighted average counterparty credit quality of 'A-'. This partially offsets the negative credit implications of structural subordination. WhiteWater's Negative Outlook reflects increased execution risk and near-term balance-sheet pressure associated with the Eiger Express Pipeline construction, which will be funded with asset-level debt. Fitch’s Key Rating-Case Assumptions - Fitch's Oil & Gas Price Deck; - Shippers exercise extension options at modest discount to current rates; - Growth projects financed with a combination of Ares sponsor equity and incremental ACI Rover term loan borrowings; - Ohio Ad Valorem tax liability funded with equity and settled in 2029; - Variable interest rate of SOFR + 2.50%; - No major expansion projects pursued during forecast period; - Cash available after debt service is distributed to sponsor. 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 ('b+', Moderate), diversification and asset quality ('bbb-', Lower), company operational characteristics ('bb+', Higher), profitability ('a-', Lower), financial structure ('bb-', Higher), and financial flexibility ('bbb-', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 40% weight for the forecast year 2026, 40% for the forecast year 2027 and 20% for the forecast year 2028. The governance assessment of 'good' has no impact. The operating environment assessment of 'aa-' has no impact. The SCP is 'bb'. To derive the Long-Term 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 - Meaningful deterioration in the counterparty credit quality of an anchor shipper; - A significant change in Fitch's expectation towards recontracting risk; - Debt incurrence at Rover Pipeline LLC resulting in meaningful structural subordination of ACI Rover Parent LLC; - EBITDA leverage sustained above 6.5x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Meaningful improvement in the credit quality of Rover's anchor shippers combined with EBITDA leverage sustained below 5.5x. Liquidity and Debt Structure ACI Rover has limited liquidity needs given its limited operating expenses. Fitch expects ACI Rover's operating cash flows will be sufficient to cover its debt service obligations. ACI Rover's management is targeting a capital structure that consists of a $910 million Term Loan B with a bullet maturity seven years from the financing's closing date. Fitch expects the facility will include a financial covenant requiring the ACI Rover to maintain a debt service coverage ratio of 1.05x, and a ratio incremental basket that permits unlimited incremental indebtedness subject to a consolidated total net leverage incurrence test of 6.50x. Fitch expects ACI Rover will remain compliant with this covenant throughout the forecast horizon. Issuer Profile ACI Rover Parent, LLC, owned by Ares Core Infrastructure Fund, holds an indirect 32.4% non-operated interest in Rover Pipeline. The 700+ mile, 3.425 Bcf/d FERC-regulated interstate natural gas pipeline transports Appalachian Basin gas to Midwest, Canadian, and Gulf Coast markets. Date of Relevant Committee May 27, 2026 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 ACI Rover Parent, 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 ----------- ------ -------- ACI Rover Parent, LLC LT IDR BB New Rating senior secured LT BB+ New Rating RR2 ALFASPIRE INC: Hires Cava Law LLC as General Bankruptcy Counsel --------------------------------------------------------------- Alfaspire, Inc. d/b/a Servpro of Doral seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Cava Law, LLC as general bankruptcy counsel. The firm will provide these services: a. advise the Debtor with respect to its powers and duties as a debtor-in-possession and the continued management of its affairs; b. advise the Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the Court; c. prepare motions, pleadings, orders, applications, adversary proceedings, and other legal documents necessary in the administration of the case; d. protect the interests of the Debtor and the Estate in all matters pending before the Court; and e. represent the Debtor in negotiations with its creditors in the preparation of a plan. 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. The firm received a retainer in the amount of $7,500. Christina Vilaboa-Abel, 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: Christina Vilaboa-Abel Cava Law, LLC 1390 South Dixie Highway Suite 1110 Coral Gables, FL 33146 Tel: (786) 675-6830 Fax: (786) 384-6909 Email: eservice@cavalegal.com About Alfaspire, Inc. d/b/a Servpro of Doral Alfaspire Inc. Alfaspire, Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 26-16267) on May 14, 2026, with $100,001 to $500,000 in assets and $1 million to $10 million in liabilities. Judge Corali Lopez-Castro presides over the case. Christina Vilaboa-Abel, Esq., represents the Debtor as legal counsel. AMBAR TRANSPORTATION: Gets Interim OK to Use Cash Collateral ------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of New York issued an interim order authorizing Ambar Transportation, Inc. to use cash collateral. The court authorized the Debtor to use cash collateral through June 30 in accordance with an approved budget. As adequate protection for the use of cash collateral, the Debtor must make monthly payments of $1,178.76 to JPMorgan Chase Bank, N.A. and $102.50 to the U.S. Small Business Administration (SBA). Both creditors will also receive replacement liens on post-petition assets similar to their pre-petition collateral but only to the extent of any decrease in the value of their interests resulting from the Debtor's use of cash collateral. JPMorgan's replacement lien holds priority over the SBA's lien. The replacement liens do not extend to Chapter 5 avoidance actions or any proceeds derived from such claims. A final hearing on continued use of cash collateral is scheduled for June 24. The order includes a carve-out that protects up to $20,000 in court-approved professional fees and up to $10,000 for a potential Chapter 7 trustee if the case is converted. All parties retain their rights to seek additional adequate protection, challenge liens, conduct discovery, or raise objections before entry of a final cash collateral order. A copy of the Debtor's budget is available at https://shorturl.at/px1hq from PacerMonitor.com. About Ambar Transportation Inc. Ambar Transportation, Inc. is a New York-based transportation company operating under a New York City Taxi & Limousine Commission for-hire vehicle base license. Ambar Transportation sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.Y. Case No. 26-41612) on April 1, 2026, listing up to $50,000 in assets and up to $1 million in liabilities. Ramon Corona, president of Ambar Transportation, signed the petition. Judge Jil Mazer-Marino oversees the case. Mark E. Cohen, Esq., at BFSNG Law Group, LLP, represents the Debtor as bankruptcy counsel. AMERICAN AIRLINES: Moody's Cuts Rating on Sr. Secured Debt to Ba3 ----------------------------------------------------------------- Moody's Ratings downgraded the backed senior secured bank credit facility and backed senior secured notes ratings of American Airlines, Inc. (American Airlines) to Ba3 from Ba2 and downgraded the backed senior secured first lien bank credit facility rating and backed senior secured notes rating of AAdvantage Loyalty IP Ltd. (AAdvantage Loyalty) to Ba2 from Ba1. The following ratings are unchanged: the B1 corporate family rating and B1-PD probability of default rating assigned to American Airlines Group Inc. (Parent), all of American Airlines' enhanced equipment trust certificates (EETC) ratings. The speculative grade liquidity rating (SGL) of American Airlines Group Inc. is unchanged at SGL-1 and the outlook is unchanged at stable. The outlooks of American Airlines and AAdvantage Loyalty are maintained at stable. The downgrade of the secured debt ratings of American Airlines and AAdvantage Loyalty reflects a reduction of the unsecured debt and unsecured claims (pension liability) which reduces the unsecured's first loss position in the capital structure. Over the past two years, American has repaid several pieces of unsecured debt and reduced its underfunded pension obligation. While these actions are positive from a credit perspective, the reduction in the unsecured obligations reduces the support to the secured debt, per Moody's Loss Given Default for Speculative-Grade Companies methodology. Moody's took no action on the corporate family rating, despite Moody's forecasts that American Airlines will post an operating loss in 2026 due to higher fuel costs. Moody's expects that the company's earnings will recover to above $2 billion in 2027. This will drive improvements in financial leverage, with debt/EBITDA around 6.0x, down from a temporary spike above 10x in 2026. Moody's forecasts calls for the average cost of a gallon of jet fuel of around $3.85 in 2026, improving by about 10% in 2027. Of note, this is well above what Moody's estimates the company's assumption to be. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. RATINGS RATIONALE The Parent's B1 CFR reflects American's strong business profile, supported by its expansive domestic and international networks, diversified revenue streams including premium offerings, Moody's expectations that airline operations will continue to improve and the company's very good liquidity. Despite an operating loss in 2026, Moody's forecasts the company will generate positive free cash flow of about $1 billion in 2026 improving to around $2 billion in 2027. This will enable the company to reduce debt and strengthen its credit metrics. Continued strong demand, especially from premium travelers – corporate, leisure and international travelers – will support fare increases that will partially offset higher fuel prices this year. Liquidity will remain very good. American held about $7.3 billion of cash and short-term investments at March 31, 2026. Moody's expects cash to remain above $5 billion through 2027 and the $3.51 billion of revolvers to remain undrawn. Moody's projects free cash flow of about $1 billion in 2026 and $2 billion in 2027. The company is subject to a minimum liquidity test (above $2 billion) and a collateral coverage ratio on slots, gates and routes bank financings. Moody's expects the company will maintain ample cushion relative to these covenants. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Moody's expects debt/EBITDA will be sustained below 4.5x and funds from operations plus interest-to-interest approaches 4x. The ratings could be downgraded if liquidity weakens, debt/EBITDA is sustained above 6x or EBIT margin is sustained below 7%. A sale of an equity interest in the loyalty program that requires sharing of program cash flow with one or more third parties could also result in a downgrade. LIST OF AFFECTED RATINGS Issuer: American Airlines, Inc. Downgrades: Backed Senior Secured Bank Credit Facility, Downgraded to Ba3 from Ba2 Backed Senior Secured, Downgraded to Ba3 from Ba2 Outlook Actions: Outlook, Remains Stable Issuer: AAdvantage Loyalty IP Ltd. Downgrades: Backed Senior Secured Bank Credit Facility, Downgraded to Ba2 from Ba1 Backed Senior Secured, Downgraded to Ba2 from Ba1 Outlook Actions: Outlook, Remains Stable The principal methodology used in rating AAdvantage Loyalty IP Ltd. was Passenger Airlines published in December 2025 and available at https://ratings.moodys.com/rmc-documents/455790. The principal methodologies used in rating American Airlines, Inc. were Passenger Airlines published in December 2025 and available at https://ratings.moodys.com/rmc-documents/455790, and Enhanced Equipment Trust Certificates published in April 2024 and available at https://ratings.moodys.com/rmc-documents/418385. 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. American Airlines Group Inc. is the holding company for American Airlines, Inc. and regional subsidiaries, Envoy, PSA and Piedmont. Revenue was $54.6 billion in 2025. ANNIE EYELASH: Seeks to Hire Kamini Fox PLLC as Counsel ------------------------------------------------------- Annie Eyelash & Permanent Make Up Salon Inc seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to employ Kamini Fox, PLLC as Counsel. The firm will provide these services: a. represent the Debtor, as debtor-in-possession, in all aspects of this subchapter V chapter 11 case; b. prepare and file all necessary motions, applications, answers, orders, monthly reports, adversary proceedings and other necessary and appropriate documents in connection with the administration of the Debtor's estate; c. advise the Debtor of its responsibilities and duties as a debtor and debtor-in-possession in the continued management and operation of its financial affairs and ensure insofar as practicable that it complies with its responsibilities; d. appear at all appropriate meetings before this Court, any appellate courts, and the U.S. Trustee, and protect the interests of the Debtor's estate before such courts and the U.S. Trustee; e. represent the Debtor in actions to protect and preserve the Debtor's estate, including the prosecution of actions on its behalf, the defense of any actions commenced against the estate, negotiations concerning all litigation in which the Debtor may be involved and object to claims filed against the estate; f. assist the Debtor in formulating and negotiating a plan of reorganization; and, g. perform such other further legal services to the Debtor which may be necessary herein. The firm will be paid at these rates: Kamini Fox $450 per hour For of-counsel $450 per hour Paralegals or legal assistants $150 per hour The firm received a pre-petition retainer in the amount of $15,000 in addition to the filing fee of $1,738 of which was paid by the Debtor for services rendered. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Kamini Fox, Esq., 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: Kamini Fox, Esq. 825 East Gate Blvd., Suite 308 Garden City, New York 11530 Tel: (516) 493-9920 Fax: (516) 255-6905 Email: kamini@kfoxlaw.com About Annie Eyelash & Permanent Make Up Salon, Inc. Annie Eyelash & Permanent Make Up Salon, Inc. is a beauty and cosmetic services company specializing in eyelash and permanent makeup treatments. Annie Eyelash & Permanent Make Up Salon, Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-11104) on May 13, 2026. In its petition, the Debtor reports estimated assets between $100,001 and $1,000,000 and estimated liabilities between $100,001 and $1,000,000. Honorable Bankruptcy Judge David S. Jones handles the case. The Debtor is represented by Kamini Fox, Esq. of Kamini Fox, PLLC. APPTECH PAYMENTS: All Five Key Proposals Passed at Annual Meeting ----------------------------------------------------------------- AppTech Payments Corp. announced in a regulatory filing the final voting results from its Annual Meeting of Stockholders. There were 40,503,934 shares of Company common stock entitled to be voted as of the March 30, 2026, record date. Of this amount, 26,990,778 shares were represented in person or by proxy at the meeting. Voting results for each matter submitted to a vote at the 2026 Annual Meeting are set forth below: PROPOSAL 1. The shareholders voted to elect each of the two Class II director nominees to serve two-year terms: 1. Albert L. Lord * Votes For: 24,278,883 * Withheld: 2,711,895 * Broker Non-Votes: 574,067 2. Thomas J. DeRosa * Votes For: 18,839,757 * Withheld: 8,151,021 * Broker Non-Votes: 574,067 PROPOSAL 2. The shareholders approved, on an advisory basis, the compensation of the Company's named executive officers: * Votes For: 22,309,168 * Against 1,532,022 * Abstain: 3,149,588 * Broker Non-Votes: 574,067 PROPOSAL 3. The shareholders indicated, on an advisory basis, the preferred frequency of future stockholder advisory votes on the compensation of the Company's named executive officers for One Year: * One Year: 21,868,753 * Two Years: 1,049,477 * Three Years: 750,181 * Abstain: 3,222,397 * Broker Non-Votes: 574,067 PROPOSAL 4. The shareholders approved the 2026 AppTech Equity Incentive Plan: * Votes For: 21,612,652 * Against 1,749,190 * Abstain: 3,628,936 * Broker Non-Votes: 574,067 PROPOSAL 5. The appointment of dbbmckennon, LLC as the Company's independent registered public accounting firm for fiscal year 2026 was ratified by the shareholders: * Votes For: 25,837,544 * Against 78,756 * Abstain: 1,648,545 * Broker Non-Votes: N/A About AppTech Payments Corp. Headquartered in Carlsbad, Calif., AppTech Payments Corp. -- www.apptechcorp.com -- provides digital financial services for financial institutions, corporations, small and midsized enterprises, and consumers through the Company's scalable cloud-based platform architecture and infrastructure, coupled with its Specialty Payments development and delivery model. AppTech maintains exclusive licensing and partnership agreements in addition to a full suite of patented technology capabilities. San Diego, California-based dbbmckennon, the Company's auditor since 2014, issued a "going concern" qualification in its report dated March 31, 2026, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2025, citing that the Company has suffered recurring losses from operations and cash used in operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of March 31, 2026, the Company had $9.14 million in total assets, $8.84 million in total liabilities, and total stockholders' equity of $297 thousand. AQUA RESOLUTION: Gets Interim OK to Use Cash Collateral ------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, entered an order authorizing Aqua Resolution, LLC to use the cash collateral of the U.S. Small Business Administration (SBA). The court approved the Debtor's use of cash collateral through July 1, allowing it to continue operating its business during the bankruptcy case. The Debtor must use the funds substantially in accordance with an approved operating budget, ensuring that expenses remain controlled and transparent while the restructuring process continues. To protect the SBA, the court granted the secured lender a replacement lien and security interest on the Debtor's assets to the same extent as its pre-petition liens. As additional adequate protection, the Debtor is required to continue making the regular monthly payments owed to the SBA under existing loan agreements. A further hearing is scheduled for June 29. A copy of the court's order and the Debtor's budget is available at https://tinyurl.com/bdhdkxaf from PacerMonitor.com. About Aqua Resolution LLC Aqua Resolution, LLC, doing business as RainSoft of Chicago, provides water treatment and filtration systems and related services, operating as an independent RainSoft dealership in Lombard, Illinois, serving residential and commercial customers. Aqua Resolution filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 26-00804) on January 17, 2026, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Thomas J Norton, managing member, signed the petition. Judge Michael B. Slade presides over the case. David P. Leibowitz, Esq., at the Law Offices of David P. Leibowitz, LLC represents the Debtor as bankruptcy counsel. ARCHBISHOP OF BALTIMORE: Committee Files Restructuring Plan ----------------------------------------------------------- The official committee of unsecured creditors of Roman Catholic Archbishop of Baltimore submitted a Disclosure Statement for the Second Amended Plan of Reorganization for the Debtor dated May 29, 2026. The Roman Catholic Archbishop of Baltimore is the entity through which the Archdiocese of Baltimore carries out the Roman Catholic Church's mission in most of Maryland, including the City of Baltimore and Allegany, Anne Arundel, Baltimore, Carroll, Frederick, Garrett, Harford, Howard, and Washington Counties. The Official Committee of Unsecured Creditors created this Plan. The Committee is a group of seven Survivors who themselves experienced sexual abuse when they were children. The members of the Committee were appointed by the Office of the United States Trustee to represent all Survivors in the Archdiocese of Baltimore's bankruptcy case. The Committee believes that the Plan is in the best interests of all creditors and recommends that you vote to accept it. This Plan provides for the financial restructuring of the Archdiocese and all of its affiliated parishes, schools, funds, and charities, and the settlement of all, or substantially all, Claims against the Archdiocese, including, without limitation, the settlement of all Abuse Claims against the Archdiocese, other Consolidated Catholic Entities, and the Participating Parties. The Plan (i) provides for payment in full of all Administrative Claims, Priority Tax Claims, Non-Tax Priority Claims, Professional Fee Claims, and Claims for U.S. Trustee Fees, (ii) preserves the rights of holders of certain Allowed Secured Claims in accordance with section 1123(b)(2) of the Bankruptcy Code, (iii) leaves unimpaired any Pass-Through claims, (iv) provides payment in full equal to the full Allowed amount of any General Unsecured Claims, (v) establishes the Abuse Claims Settlement Fund to be held by the Trust to compensate holders of Abuse Claims, (vi) provides for the payment of Unknown Abuse Claims on terms similar to the Abuse Claims, and (vii) disallows contingent claims held by insiders of the Archdiocese for contribution or indemnity. The Plan's treatment of Abuse Claims has been approved by the Committee in consultation with attorneys representing Committee members who collectively represent approximately 64% of all Abuse Claimants who have asserted Abuse Claims against the Archdiocese ("State Court Counsel"). The Plan provides that funding for the Trust and the Abuse Claims Settlement Fund will be provided from, among other potential sources of recovery: (i) a monetary contribution by the Archdiocese and other Participating Parties in the aggregate amount of $441,600,000.00; and, in addition, (ii) at least $100,000,000 in insurance settlement payments paid pursuant to the Insurance Settlement Agreements with various Settling Insurers, (iii) the proceeds of other insurance policies issued to the Archdiocese and/or other Participating Parties by any Non-Settling Insurer(s), (iv) the proceeds of real property transferred to the Trust, and (v) the proceeds of Avoidance Actions transferred to the Trust. To the extent the Archdiocese, Committee, and any Non-Settling Insurer(s) can reach agreement on Insurance Settlement Agreements or other terms of settlement prior to confirmation of the Plan, the Plan provides that such Non-Settling Insurers may become Settling Insurers and for settlement proceeds resulting therefrom to be used to further supplement the Abuse Claims Settlement Fund. The Plan does not permit Non-Settling Insurers to become Settling Insurers (as such term is used in the Plan) after the Plan Effective Date. To the extent no settlement is achieved, the Plan provides for the assignment of Insurance Claims held by the Archdiocese or other Participating Parties to the Trust and establishes a framework for post-confirmation litigation of Insurance Claims and other Litigation Claims seeking recovery from Non-Settling Insurers. The Committee, in consultation with State Court Counsel representing approximately sixty-four percent of all Abuse Claimants, has acknowledged and accepted the risk inherent in pursuing post confirmation recovery from Non-Settling Insurers in the absence of a settlement. The Plan presents two alternatives to pay creditors and reorganize the Archdiocese. * Under Option 1, all of the parishes, schools, charities, funds, and other affiliates of the Archdiocese will be deemed under the law to be part of this bankruptcy and all of their assets will be used to pay their creditors. * Under Option 2, if the Court does not deem some or all of the parishes, schools, charities, funds, and other affiliates to be part of this bankruptcy, those excluded affiliates will have the option to pay into the plan and obtain similar releases from claims. But if those excluded affiliates elect not to pay money to fund the plan, they will receive no releases and Survivors can continue to sue them. Under Option 2, an excluded affiliate might obtain a limited release from claims if the Committee settles with an insurance company who agrees to pay money on behalf of the excluded affiliate. Class 5 includes all General Unsecured Claims. Except to the extent a holder of a General Unsecured Claim agrees to less favorable treatment of their General Unsecured Claim, in exchange for full and final satisfaction of such Allowed General Unsecured Claim, each holder of a General Unsecured Claim shall receive payment in Cash in an amount equal to such Allowed General Unsecured Claim (excluding interest), which shall be payable on or as soon as reasonably practicable after the later to occur of: (i) the Effective Date; (ii) the date on which the applicable General Unsecured Claim becomes an Allowed General Unsecured Claim; and (iii) the date on which the holder of such General Unsecured Claim and the Archdiocese shall otherwise agree in writing. No Participating Party may be a Class 5 Claimant. General Unsecured Claims are Unimpaired. As a result, each holder of a General Unsecured Claim is conclusively presumed to have accepted the Plan, pursuant to section 1126(f) of the Bankruptcy Code. Therefore, holders of General Unsecured Claims are not entitled to vote to accept or reject the Plan, and the votes of holders of General Unsecured Claims will not be solicited with respect to General Unsecured Claims. All Administrative Claims, Priority Tax Claims, Non-Tax Priority Claims, Secured Claims, and General Unsecured Claims will be paid by the Archdiocese. All Distributions to be made under the Plan on account of Abuse Claims will be paid solely from the Trust to be established for the purpose of receiving, liquidating, and distributing Trust Assets in accordance with this Plan, the Allocation Protocol, and the Trust Agreement. On the Confirmation Date, or as soon as practicable thereafter, the Trust shall be established in accordance with the Trust Documents for the exclusive benefit of the holders of Class 6 Claims. The Trust will assume all liability for and rights concerning all Channeled Claims, including the rights to settle the Channeled Claims. The Trust will make Distributions from the Abuse Claims Settlement Funds to Class 6 Claimants pursuant to the terms of the Allocation Protocol, the Trust Agreement, the Plan, and the Confirmation Order. On or before the Effective Date, the Consolidated Catholic Entities shall cause the Consolidated Catholic Entities Cash Contribution to be paid to the Trust. The Consolidated Entities Abuse Claims Settlement Sub-Fund shall be funded from the Consolidated Catholic Entities Cash Contribution in the amount necessary to effectuate distributions to any Non-Participating Abuse Claimant(s) pursuant to Section 4.4 of the Plan. Each Consolidated Catholic Entity will transfer, assign, deed, sell, and forever convey (i) the net sale proceeds obtained prior to the Effective Date and/ or (ii) all of its rights, title, and interest, in the in the Real Estate Assets. A full-text copy of the Disclosure Statement dated May 29, 2026 is available at https://urlcurt.com/u?l=7ZJTYG from Epiq Corporate Restructuring LLC, claims agent. Local Counsel to the Official Committee of Unsecured Creditors: Alan M. Grochal, Esq. Richard L. Costella, Esq. Tydings & Rosenberg LLP 1 East Pratt Street, Suite 901 Baltimore, MD 21202 Tel: (410) 752-9772 Fax: (410) 727-5460 Email: agrochal@tydingslaw.com Counsel to the Official Committee of Unsecured Creditors: Robert T. Kugler, Esq. Edwin H. Caldie, Esq. Andrew J. Glasnovich, Esq. Nicole Khalouian, Esq. Stinson LLP 50 South Sixth Street, Suite 2600 Minneapolis, MN 55402 Tel: (612) 335-1500 Fax: (612) 335-1657 Email: robert.kugler@stinson.com ed.caldie@stinson.com Andrew.glasnovich@stinson.com Nicole.khalouian@stinson.com About Roman Catholic Archbishop of Baltimore Roman Catholic Archbishop of Baltimore is a non-profit religious institution that maintains its principal place of business at 320 Cathedral Street, Baltimore, Maryland 21201. Consistent with Canon Law and Maryland law, the RCAB holds property, including real property, as a corporation sole for the purposes of erecting churches, parsonages, burial grounds, or schools according to the discipline and government of the Roman Catholic Church, with all such property to be used only for such purposes. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 23-16969) on Sept. 29, 2023. In the petition signed by William E. Lori, archbishop, the Debtor disclosed $100 million to $500 million in assets and $500 million to $1 billion in liabilities. Judge Michelle M. Harner oversees the case. The Debtor tapped YVS Law, LLC and Holland & Knight LLP as legal counsel; Keegan Linscott & Associates, PC as financial and restructuring advisor; and Gallagher Evelius & Jones LLP as special counsel. Epiq Corporate Restructuring LLC is the claims, noticing, and balloting agent. The U.S. Trustee for Region 5 appointed an official committee to represent unsecured creditors in the Chapter 11 case of The Roman Catholic Archbishop of Baltimore. The committee hires Stinson LLP as counsel. Tydings & Rosenberg LLP as local counsel. ARCHITECTURAL GLAZING: Hires Patrick Rettig as Professional ----------------------------------------------------------- Architectural Glazing Systems, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Patrick Rettig Corporation as professional. The firm's services include: a. preparing monthly financial statements; b. preparing cash flow reports weekly; c. assisting AGS in collecting receivables; d. analyzing lien release calculations to assist AGS to collect receivables; e. tracking work in progress on a weekly basis; f. implementing job costing including direct labor costs by hour; h. managing payables and assisting with cash flow issues such as when payments are made; i. preparing the weekly projection for cash collateral; j. preparing the budget to actual weekly reporting; k. preparing plan projections; l. overseeing the preparation of the monthly operating reports; m. training internal staff at AGS in proper accounting procedures; n. consolidating the books and records of the multiple entities; and o. working with management to assist it to be more effective and efficient. The firm will be paid at monthly charge of $7,000 flat fee. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Patrick Rettig, 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: Patrick Rettig Patrick Rettig Corporation 7877 Arroyo Vista Court Riverside, CA 92506 Tel: (760) 662-9668 About Architectural Glazing Systems, Inc. Architectural Glazing Systems, Inc. is a construction industry company specializing in architectural glass and glazing solutions for commercial and institutional projects. The company provides design, fabrication, and installation services for building envelope systems. Architectural Glazing Systems, Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-10813) on May 18, 2026. The filing was made voluntarily in federal bankruptcy court in Georgia. Honorable Bankruptcy Judge Paul Baisier is handling the case. The Debtor is represented by Thomas T. McClendon, Esq. of Jones & Walden, LLC. ASPIRING SOLUTIONS: Gets Interim OK to Use Cash Collateral ---------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California granted Aspiring Solutions LLC interim approval to use cash collateral through July 24. Under the court order, the Debtor is permitted to use the cash collateral of its secured creditor, Zions Bancorporation, N.A. (California Bank & Trust), in accordance with an approved budget. This collateral includes proceeds from inventory and other assets subject to the lenders blanket lien, allowing the Debtor to continue business operations during the interim period. As part of the adequate protection package, Aspiring Solutions must continue making monthly adequate protection payments of $1,437 to Zions, due on the first day of each month. In addition, Zions was granted a continuing, valid, and automatically perfected lien on post-petition cash collateral and other assets, preserving the same priority, extent, and validity as its prepetition security interests. The order also permits the debtor and Zions to enter into a written agreement for continued use of cash collateral without requiring further court approval or additional notice and hearing. A continued hearing on the cash collateral motion has been scheduled for July 24. About Aspiring Solutions LLC Aspiring Solutions, LLC operates under the brand name GillyGro, a founder-led U.S.-based startup lifestyle brand focused on multifunctional travel and parenting products designed to support organized mobility. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 26-50328) on March 2, 2026, listing between $100,001 and $500,000 in both assets and liabilities. Judge Dennis Montali oversees the case. Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger, represents the Debtor as bankruptcy counsel. ATI INC: Moody's Affirms 'Ba2' CFR & Alters Outlook to Positive --------------------------------------------------------------- Moody's Ratings changed ATI Inc.'s (ATI) rating outlook to positive from stable. At the same time, Moody's assigned a Ba3 rating to the company's proposed $450 million senior unsecured notes and affirmed all ratings including its Ba2 Corporate Family Rating, Ba2-PD Probability of Default Rating and the Ba3 rating on its existing senior unsecured notes. The company plans to use the proceeds from the notes offering to retire its $350 million senior unsecured notes due 2027 and for general corporate purposes. ATI's Speculative Grade Liquidity Rating (SGL) remains at SGL-1. "The outlook change to positive for ATI Inc. reflects Moody's expectations that its operating performance will continue to strengthen over the next 12 to 18 months and its credit metrics will remain strong for the rating as it benefits from strength in its key aerospace and defense end market and a record high backlog" said Michael Corelli, Moody's Ratings' Senior Vice President and lead analyst for ATI Inc. RATINGS RATIONALE ATI Inc.'s Ba2 corporate family rating reflects its relatively low leverage, good interest coverage and the expectation these metrics will be supported by the ongoing strength in its key commercial aerospace end market. This end market is experiencing strong orders and demand and should continue to remain strong assuming there is no material long term impact from the Iran conflict. ATI's rating also reflects its position as a leading producer of specialty titanium and titanium alloys, nickel-based alloys and super alloys serving a wide range of end markets including aerospace and defense, energy, medical, electronics, automotive and others. The company benefits from long-term agreements (LTA's) with many of its customers across the airframe, aero engine, defense, and medical markets. The rating also incorporates its very good liquidity position, which provides support to its credit profile and enables it to navigate periods of weakness in the aerospace sector and investments in working capital as the business grows. ATI's rating also reflects its reliance on the aerospace and defense sector and the historical volatility of its operating performance and credit metrics which tend to track the aerospace cycle. It incorporates the risk of potentially lower demand if worldwide economic growth weakens or there are shortages of jet fuel due to the closing of the Strait of Hormuz. ATI's operating performance continues to strengthen for the fifth consecutive year due to strength in the aerospace and defense end market, which accounted for about 68% of its revenues in 2025 and has led to more long-term agreements and a record high backlog of $4.1 billion. The company has also benefitted from improved productivity, product mix optimization, strategic pricing actions and organic growth investments. As a result, its adjusted EBITDA is expected to rise to about $1.0 billion in 2026 versus $843 million in 2025 and $736 million in 2024. The company is expected to achieve continued earnings growth as it benefits from strong order rates and the same dynamics supporting its 2025 performance, along with share gains in titanium products as the company expands capacity. ATI is expected to generate solid free cash flow as earnings grow and despite continued investments in working capital, which has consumed around $660 million of cash over the past 5 years. Moody's anticipates the company will use this free cash on organic growth and share repurchases and it is not expected to pay down debt in the near-term as it is raising more debt as part of its senior notes refinancing. Also, the company announced an additional $500 million share repurchase authorization in February 2026 on top of the $120 million that was available on a prior authorization. Nevertheless, its credit metrics are expected to continue to strengthen along with its operating performance. If the company can generate adjusted EBITDA of around $1.0 billion, then its leverage ratio (debt/EBITDA) will decline to about 2.0x and its interest coverage (EBITDA/Interest) will rise to about 8.0x as of December 2026. These metrics will be strong for the rating and could lead to an upgrade if they are likely to be sustained. ATI's speculative grade liquidity rating of SGL-1 considers the company's very good liquidity profile which consists of $401.7 million in cash and approximately $495 million of borrowing availability on its $600 million asset-based lending credit facility as of March 29, 2026. Availability was reduced by $75 million of outstanding borrowings and $29.3 million of letters of credit issued. The ABL facility was amended in June 2025, and the maturity was extended by 3 years to June 2030. ATI also established a 3-year $125 million accounts receivable securitization facility in September 2025 to take advantage of its over-collateralized ABL and to add flexible revolving liquidity. There were no loans outstanding under this facility as of March 2026. The Ba3 rating on ATI's senior unsecured debt instruments reflects the effective subordination of the unsecured debt relative to the $600 million ABL facility and the $200 million term loan. The positive outlook incorporates Moody's expectations that ATI's operating performance and credit metrics will remain historically strong over the next 12 to 18 months and its credit metrics will continue to be strong for its rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS ATI's rating could be upgraded if the company sustains a track record of higher profitability and financial policies commensurate with a higher rating, and it sustains EBITDA/interest above 7.5x, debt/EBITDA below 2.5x and retained cash flow of more than 30% of net debt. Downgrade rating pressure could materialize if ATI sustains EBITDA/interest below 5.0x, debt/EBITDA above 3.5x and retained cash flow below 20% of outstanding debt. The rating could also be downgraded if the company's liquidity position materially deteriorates. Headquartered in Dallas, Texas, ATI Inc. is a diversified producer and distributor of components and specialty metals such as titanium and titanium alloys, nickel-based alloys and stainless and specialty steel alloys. It sells these products mainly to the aerospace, defense, energy, automotive, electronics, medical, construction and mining sectors. For the twelve months ended March 29, 2026, the company generated revenues of $4.6 billion. The principal methodology used in these ratings was Aerospace and Defense published in July 2025. ATI's corporate family rating of Ba2 is two notches below the scorecard-indicated outcome of Baa3 for the LTM period ended March 29, 2026. The scorecard indicated outcome gets an uplift from the near-term strength in the aerospace and defense sector while the assigned rating reflects the historical volatility of the sector and more sustainable credit and profitability metrics. AURORA FUEL: Gets Interim OK to Use Cash Collateral --------------------------------------------------- Aurora Fuel Company, Inc. received interim approval from the United States Bankruptcy Court for the District of Rhode Island to use cash collateral. The court approved the Debtor's use of cash collateral in accordance with an approved budget, subject to a maximum variance of 10% by category and in the aggregate on a monthly basis. The authority remains effective until further court order but will automatically terminate if the Debtor's Chapter 11 case is dismissed or converted to Chapter 7; a trustee other than the Subchapter V trustee is appointed; or relief from the automatic stay is granted concerning The Huntington National Bank's collateral. As adequate protection, Huntington will receive a monthly payment of $1,500 and a replacement lien on post-petition assets similar to its pre-petition collateral. Additional safeguards include monthly financial reporting and inspection rights granted to the bank over collateral, records, and business operations. If adequate protection proves insufficient, Huntington may seek a superpriority administrative claim under Section 507(b) of the Bankruptcy Code. The bank also retains the right to pursue additional adequate protection or relief from the automatic stay. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/ZtomR from PacerMonitor.com. About Aurora Fuel Company Inc. Aurora Fuel Company, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Rhode Island Case No. 26-10315) on April 7, 2026, with $50,001 to $100,000 in assets and $1 million to $10 million in liabilities. Judge John A. Dorsey Jr. presides over the case. Thomas P. Quinn, Esq., at Mclaughlinquinn, LLC represents the Debtor as legal counsel. BASECOAT ON FIFTH: Gets Interim OK to Use Cash Collateral --------------------------------------------------------- Basecoat on Fifth, LLC received interim approval from the U.S. Bankruptcy Court for the Northern District of Alabama, Southern Division, to use cash collateral. The court on June 9 approved the Debtor's interim use of cash collateral to fund its operations until the final hearing on July 15. The U.S. Small Business Administration holds a blanket lien on substantially all of the Debtor's assets under an SBA-backed commercial loan. As adequate protection, the SBA will be granted a replacement lien on and security interest in all post-petition property acquired by the Debtor after its Chapter 11 filing that is similar to its pre-petition collateral. The replacement lien will have the same priority as the SBA's pre-petition lien. The order is available at http://bankrupt.com/misc/BasecoatonFifth_ICCOrder.pdf Basecoat on Fifth's financial distress stems from a significant decline in customer traffic beginning in 2025, which it attributes to worsening conditions in the surrounding neighborhood, including homelessness that has negatively affected safety perceptions and caused nearby businesses such as Pies and Pints and Outback Steakhouse to close. As revenue declined, the Debtor fell behind on rent obligations, leading to an unlawful detainer action by its landlord, which ultimately precipitated the bankruptcy filing. The Debtor remains in possession of its assets and seeks to reorganize its operations to stabilize income and meet ongoing obligations under a future plan. About Basecoat on Fifth LLC Basecoat on Fifth, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ala. Case No. 26-01671) on May 12, 2026, with up to $50,000 in both assets and liabilities. Judge D. Sims Crawford presides over the case. Robert C. Keller, Esq., at Russo, White & Keller represents the Debtor as legal counsel. BASIC WHOLESALE: Gets Interim OK to Use Cash Collateral ------------------------------------------------------- Basic Wholesale Floral Distributors, LLC got the green light from the U.S. Bankruptcy Court for the Eastern District of Michigan to use cash collateral. At the June 8 hearing, the court authorized the Debtor's interim use of cash collateral and set a final hearing for June 29. The Debtor will use the funds as working capital in accordance with a court-approved budget totaling $34,800 for the four-week interim period from May 28 through June 24. The Debtor's primary secured creditors are the U.S. Small Business Administration, which holds a blanket lien securing about $450,000 in debt, and WBL SPO 1 LLC, which holds a first mortgage on the Debtor's real estate and a second lien on personal property securing about $397,000 in debt. As adequate protection for any diminution in the value of creditors' collateral, the Debtor offers replacement liens on post-petition cash and other assets. The Debtor argued that this protection is sufficient as continued operations will sustain revenue streams, adding that creditors will be better protected by ongoing business operations than by liquidation. About Basic Wholesale Floral Basic Wholesale Floral Distributors, LLC operates as a wholesale distributor of fresh flowers, plants, and floral supplies to retail florists, event planners, funeral homes, and event venues. Basic Wholesale Floral Distributors filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 25-46352) on June 22, 2025, with up to $50,000 in assets and between $500,001 and $1 million in liabilities. Deborah Fish, Esq., managing partner at Allard & Fish, P.C., serves as Subchapter V trustee for the Debtor. Judge Mark A. Randon presides over the case. Kurt Thornbladh, Esq., at Thornbladh Legal Group, PLLC represents the Debtor as bankruptcy counsel. BECKY'S PET CARE: Gets Interim OK to Use Cash Collateral -------------------------------------------------------- Becky's Pet Care, Inc. got the green light from the U.S. Bankruptcy Court for the Eastern District of Virginia, Alexandria Division, to use cash collateral. At the recently held hearing, the court authorized the Debtor's interim use of cash collateral to fund its operations through June 30. The Debtor needs immediate access to use cash collateral for operating expenses and trustee-related costs. To protect secured creditors, the Debtor offers adequate protection through replacement liens on post-petition assets of the same type and priority as their pre-petition collateral. Additional safeguards include continued compliance with reporting obligations. The U.S. Small Business Administration, the Debtor's primary secured creditor, holds a blanket lien on substantially all assets of the Debtor, including cash, receivables, equipment, and other business property. Certain junior lenders may also assert security interests but these are subordinate to the SBA's position. The Debtor's assets are valued significantly below the SBA's $2 million claim, leaving the SBA effectively oversecured or entitled to adequate protection regarding cash collateral. The Debtor filed for bankruptcy after experiencing long-term financial strain caused primarily by structural changes following the COVID-19 pandemic, when demand for pet-care services declined as customers stayed home. To sustain operations after the pandemic, the Debtor incurred approximately $2 million in SBA Economic Injury Disaster Loans and relied heavily on credit cards and high-interest private financing, which ultimately became unsustainable despite the underlying business remaining near break-even without debt service. A key factor precipitating the bankruptcy filing was an unexpected event shortly before the petition date: a merchant cash advance lender filed a UCC-1 lien notice with the Debtor's payment processor, Stripe, effectively freezing revenue and forcing the case to be filed earlier than planned. Moreover, the Debtor was spending approximately $20,000 to $30,000 per month on debt service prior to its bankruptcy, which it contends is no longer viable. The Debtor disclosed it has identified a buyer, The Houndry, LLC, which intends to acquire the business and continue operations in Northern Virginia. This sale is expected to preserve jobs, maintain customer relationships, and allow payment of the SBA's secured claim, forming the foundation of a proposed Subchapter V reorganization plan. The next Hearing is scheduled for June 30. About Becky's Pet Care Inc. Becky's Pet Care, Inc. provides dog walking, pet sitting, and training services in Northern Virginia. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Virg. Case No. 26-11295) on May 28, 2026. In the petition signed by Becky O'Neil, president, the Debtor disclosed up to $50,000 in assets and up to $10 million in liabilities. Justin P. Fasano, Esq., at McNamee Hosea, P.A., represents the Debtor as legal counsel. BLAKE EMERGENCY: Gets Final OK to Use Cash Collateral ----------------------------------------------------- Blake Emergency Medicine, PLLC received final approval from the U.S. Bankruptcy Court for the Eastern District of Texas, Sherman Division, to use cash collateral. At the June 10 hearing, the court authorized the Debtor's use of cash collateral to fund its operations on a final basis. The Debtor was initially allowed to access cash collateral under the court's May 26 interim order and a 30-day budget, which shows total operational expenses of $37,692.90. Blake depends on the use of cash collateral for operations and travel expenses. Revenue is generated as an emergency doctor. The Debtor subcontracts to different hospital emergency rooms around the North DFW area. The Debtor offers adequate protection to secured creditors through replacement liens on all post-petition property including cash collateral, with the same extent and priority as their pre-petition liens. These replacement liens do not extend to Chapter 5 avoidance actions and are subject to a fee carve-out. A search in the Texas Secretary of State shows that allegedly secured positions are held by Bankers Healthcare Group, LLC and the U.S. Small Business Administration. The UCC liens appear to be blanket liens allegedly secured by current and future accounts receivables, inventory, and equipment. About Blake Emergency Medicine PLLC Blake Emergency Medicine PLLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tex. Case No. 26-41654) on May 12, 2026, listing up to $50,000 in assets and $100,001 to $500,000 in liabilities. Robert C. Lane. Esq. at The Lane Law Firm PLLC serves as the Debtor's counsel. CALIFORNIA RESOURCES: Fitch Hikes IDR to 'BB-', Outlook Stable -------------------------------------------------------------- Fitch Ratings has upgraded the Long-Term Issuer Default Rating (IDR) of California Resources Corporation (CRC) to 'BB-' from 'B+'. Fitch has affirmed the rating for CRC's reserve-based credit facility (RBL) at 'BB+'/'RR1', affirmed the 'BB-' rating for the senior unsecured notes and revised the notes' Recovery Rating to 'RR4' from 'RR3'. The Rating Outlook is Stable. The upgrade reflects the improved regulatory environment in California, which materially reduces future permitting risks, and management's planned return to organic growth. The ratings also reflect the company's low-decline asset base, increased scale following the Berry Corp. combination, strong FCF, sub-1.5x EBITDA leverage and ample liquidity. These factors are partially offset by the company's high cost structure relative to peers. Key Rating Drivers Regulatory Improvements Support Permitting: California's favorable regulatory changes reduce permitting risks for CRC and support the upgrade. The passage of SB 237 in September 2025 and resumption of new drill permitting in Kern County increases capital flexibility and provides development certainty for the next decade. Management has secured permits for its 2026 drilling program and has started permitting for its 2027 program, which should support organic production growth through the medium term. Return to Organic Growth: Management plans to accelerate its organic growth by adding three drilling rigs in 2H26 which should help reverse the company's prior organic growth decline. Under the new program, CRC is targeting about 1% growth in entry-to-exit gross production during 2026, which Fitch expects will result in single-digit growth in 2027. Fitch believes CRC will be able to maintain its production scale and adequately replace its reserves in the medium and long term, supported by the improved permitting environment. Strong FCF; Structural Cost Reductions: Fitch projects FCF after dividends of around $350 million in 2026 under management's capital program of about $540 million. The FCF profile is also supported by management's targeted $460 million of cumulative synergies and structural cost reductions through 2028, which Fitch views as achievable. Management has increased its Berry-related synergy target by $10 million and lowered its 2026 estimated facilities capital by $10 million, driven by operating efficiencies. Near-Term Hedging Protection: CRC is hedging around 65% of its remaining 2026 estimated oil production at an average Brent floor price of $65/bbl along with natural gas hedges. Fitch expects hedge losses during 2026 at Fitch's $87/bbl Brent oil price, which could continue in 2027 if current strip prices hold. Fitch expects hedging will continue, albeit potentially at lower levels, as CRC's credit facility requires minimum hedging of 50% to 0% with leverage above 2.0x or below 1.5x, respectively. Sub-1.5x Midcycle Leverage: Fitch forecasts pro forma gross debt/EBITDA at 1.0x in 2026 and sub-1.5x through the remainder of the forecast. CRC's maturity profile remains clear until 2029 when the $550 million 8.250% notes are due following their $350 million partial redemption in 1Q26. High-Cost Producer: CRC's cost structure is higher than that of most Fitch-rated U.S. onshore exploration and production (E&P) peers; however, this is partially offset by the company's Brent-linked oil price realizations and stronger gas realizations than peers. Fitch-calculated total cash operating costs, including operating costs, transportation expenses, G&A and production taxes, remain at the higher end of Fitch's aggregate E&P peer group and lead to a higher breakeven oil price compared with that of its closest peers. Peer Analysis CRC's 1Q26 production averaged 154 Mboepd (81% oil). This is larger than Vermilion Energy Inc. (BB-/Negative; 126 Mboepd), similar to Northern Oil & Gas (BB-/Stable; 148 Mboepd), but smaller than Crescent Energy Company (BB-/Positive; 341 Mboepd) and Matador Resources Company (BB/Stable; 208 Mboepd). CRC's realized prices are typically higher than peers given the exposure to premium Brent pricing and the low-decline asset base leads to lower capital intensity than peers. This is partially offset by the company's higher operating costs, which results in lower Fitch-calculated unhedged cash netbacks compared to Fitch's aggregate peer average. Fitch's Key Rating-Case Assumptions - Brent oil prices of $87/bbl in 2026, $65/bbl in 2027 and $60/bbl thereafter; - Henry Hub prices of $3.50/thousand cubic feet (mcf) in 2026, $3.25/mcf in 2027, $3.00/mcf in 2028 and $2.75/mcf thereafter; - Average production of 155 Mboepd with single-digit growth thereafter; - Capex of $540 million in 2026 with growth-linked spending thereafter; - Measured increases to shareholder returns; - No material M&A activity. 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 ('bb+', Moderate), market and competitive positioning ('bb', Moderate), diversification and asset quality ('bb+', Moderate), company operational characteristics ('bb', Moderate), profitability ('b+', Higher), financial structure ('aa-', 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' has no impact. The operating environment assessment of 'a+' has no impact. The SCP is 'bb-'. To derive the Long-Term 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 - Inability to organically replace reserves that results in material production declines and/or weakened profitability; - Deteriorating liquidity profile, including material revolver borrowings and an inability to generate positive FCF; - Midcycle EBITDA leverage sustained above 2.0x; - Unfavorable regulatory actions that limit access to new permits. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increased scale evidenced by mid-cycle EBITDA approaching $1.5 billion; - FCF generation that supports the liquidity profile and limited borrowings under the RBL; - Commitment to conservative financial policy resulting in midcycle EBITDA leverage sustained below 1.5x. Liquidity and Debt Structure CRC had $40 million cash on hand and $25 million of outstanding borrowings ($184 million letters of credit outstanding) under the $1.46 billion RBL facility at 1Q26. Fitch projects positive FCF throughout the forecasts which supports the liquidity profile along with the company's near-term hedge program. The maturity profile also remains clear with $550 million remaining on the 8.250% notes due 2029 following the recent $350 million redemption. Issuer Profile California Resources Corporation is an integrated public E&P company that operates solely in California. Summary of Financial Adjustments No material financial adjustments were made. 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 CRC's 2035 revenue-weighted Climate.VS is 55 out of 100, which is in line with its upstream North American oil and gas production peers. Key transition risks arise from a potential reduction in demand driven by policies designed to reduce the use of oil and gas in the global economy, and in the shorter term, from policies designed to limit GHG from the production of oil and gas. These risks do not have a material influence on the rating, given the very long-term time scale over which the transition may take place, uncertainty regarding the extent and nature of changes, and markets' and companies' reactions to them. CRC's production profile is liquids-focused, but the company has extensive plans to meet California's GHG reduction targets and continues to advance its CM businesses to reduce its carbon footprint in the medium and long term. The company's goals include a 2045 Full-Scope Net Zero target and an energy transition strategy that includes the company's Carbon TerraVault business and related Carbon Capture and Sequestration (CCS) projects. Fitch believes CRC is better positioned to manage medium- and long-term energy transition risks than its small and midsize E&P peers because of its first-mover advantage in California, meaningful CM investments over the last few years and supportive JV with Brookfield, which provides added expertise and derisks future funding needs. 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 ----------- ------ -------- ----- California Resources Corporation LT IDR BB- Upgrade B+ senior unsecured LT BB- Affirmed RR4 BB- senior secured LT BB+ Affirmed RR1 BB+ CAMPBELL REALTY: Gets Extension to Access Cash Collateral --------------------------------------------------------- Campbell Realty Investment Group, LLC received another extension from the U.S. Bankruptcy Court for the Eastern District of Louisiana to use cash collateral. The court entered an interim order authorizing the Debtor to use cash collateral strictly in accordance with an approved budget. Spending is subject to a maximum variance of 10% per line item and overall monthly budget limits. Any changes to the budget require either court approval or consent from secured creditors. The Debtor's 13-week budget projects total operational expenses of $231,977.49. As adequate protection, secured creditors including First Guaranty Bank, Regions Bank, BARH Dunmore, LLC, and Englade Investments, LLC will receive replacement liens on post-petition assets and proceeds, excluding avoidance actions. Additional protection includes equity cushions and monthly payments of $9,000 to First Guaranty Bank and $3,500 to Englade Investments. A final hearing is scheduled for August 12, with objections due by August 5. First Guaranty Bank, as secured creditor, is represented by: Richard A. Rozanski, Esq. Richard A. Rozanski, APLC P.O. Box 13199 Alexandria, LA 71315-3199 318-445-5600 Englade Investments, as secured creditor, is represented by: Fernand L. Laudumiey, IV, Esq. Chaffe McCall, LLP 2300 Energy Centre, 1100 Poydras Street New Orleans, LA 70163-2300 Telephone: (504) 585-7000 Fax: (504) 585-7075 laudumiey@chaffe.com About Campbell Realty Investment Group Campbell Realty Investment Group, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. La. Case No. 25-12356) on Oct. 20, 2025, listing up to $10 million in both assets and liabilities. Judge Meredith S. Grabill presides over the case. Ryan J. Richard, Esq., at Sternberg, Naccari & White, LLC serves the Debtor as counsel. CAROLINA CLEANING: Gets Interim OK to Use Cash Collateral --------------------------------------------------------- Carolina Cleaning Services, LLC received fifth interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to use cash collateral. Under the fifth interim order, the Debtor is authorized to use cash collateral solely for post-petition operating expenses as outlined in its budget. In addition, the amount budgeted for the Subchapter V trustee's anticipated administrative expense must be remitted to the Debtor's counsel to be held in trust until further court order. The Debtor projects total operational expenses of $80,887.00 for the period from June 22 to July 22. Silverline Services, Inc. and other merchant cash advance lenders will retain a continuing and replacement post-petition lien on and security interest in all assets and the proceeds thereof, whether acquired before or after the Debtor's Chapter 11 filing. The court clarified that the order does not determine the validity, extent, priority, or perfection of any lien or the characterization of any property as cash collateral. The Debtor reserves all rights to challenge such matters. The order is available at https://shorturl.at/dZWD3 from PacerMonitor.com. A further hearing is scheduled for July 21. About Carolina Cleaning Services LLC Carolina Cleaning Services LLC provides residential and commercial cleaning services throughout southeastern North Carolina. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 26-00777 on February 20, 2026. In the petition signed by Aneliese Bard Andrades, chief executive officer, the Debtor disclosed up to $100,000 in assets and up to $500,000 in liabilities. Judge Joseph N. Callaway oversees the case. Richard P. Cook, Esq., at Richard P. Cook. PLLC, represents the Debtor as legal counsel. CARR'S PLUMBING: Seeks to Extend Plan Exclusivity to July 6 ----------------------------------------------------------- Carr's Plumbing and Maintenance, LLC, asked the U.S. Bankruptcy Court for the District of Kansas to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to July 6 and Sept. 2, 2026, respectively. The Debtor explains that this case is factually and legally complex and has involved substantial contested litigation. Debtor's use of cash collateral was contested and was not resolved on a final basis until April 9, 2026. Debtor is prosecuting two adversary proceedings: Adversary No. 26-05007 against Fox Funding Group, LLC, concerning the validity, priority, and extent of liens and related declaratory and injunctive relief; and Adversary No. 26-05013 against American Express National Bank, to recover avoidable transfers. The Debtor is further amending its Schedules to disclose additional claims belonging to the estate under Section 541 of the Bankruptcy Code, including (i) a claim against A Production Company, LLC in the amount of $1,009,684.70, exclusive of interest, attorney fees, and costs; and (ii) a claim against Calamar Construction North America LLC in the amount of $329,029.00, plus interest and costs. The claim against Calamar was filed prepetition in the District Court of Sedgwick County, Kansas (Case No. 2025-CV-02082). The Debtor claims that resolution of the threshold matters is necessary to formulate a confirmable plan, as the outcomes will determine the assets available to the estate and the validity, priority, and amount of secured and other claims. The hearing on Intrust Bank's motion for relief from stay has been continued to June 11, 2026 to permit entry of an agreed order, and the hearing on Debtor’s motion to approve a compromise of the American Express adversary proceeding is also set for June 11, 2026. The Debtor states that the meeting of creditors under Section 341(a) of the Bankruptcy Code was just concluded on May 28, 2026, and Debtor amended its schedules on May 27, 2026. The Official Committee of Unsecured Creditors, appointed March 26, 2026, is relatively new. Debtor requires a reasonable opportunity following these events to formulate and negotiate a plan with the Committee and other parties in interest. The Debtor asserts that it has actively and in good faith administered this estate. Debtor has, inter alia, obtained authority to use cash collateral and pay pre-petition wages, filed multiple adversaries, applied to employ accounting professionals, and filed its monthly operating reports, all while continuing to operate its business. The requested extensions are sought in good faith and not for any improper purpose. The Debtor further asserts that the requested extensions are modest, fall well within the statutory caps of Section 1121(d)(2) of the Bankruptcy Code, and will not prejudice any creditor or any party in interest. To the contrary, permitting Debtor to continue to lead the reorganization process while the foregoing matters are resolved will promote the orderly and efficient administration of its estate. This is Debtor's first request to extend the exclusive periods. The request is not made for the purpose of delay or to pressure or harass any creditor or party in interest. Carr's Plumbing and Maintenance is represented by: Justin T. Balbierz, Esq. Mark J. Lazzo, P.A. 3500 N. Rock Road Bldg. 300, Suite B Wichita, KS 67226 Telephone: (316) 263-6895 E-mail: justin@lazzolaw.com About Carr's Plumbing and Maintenance Carr's Plumbing and Maintenance, LLC, runs a plumbing business in Wichita, Kansas. Carr's sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No. 26-10101) on February 4, 2026. In the petition signed by Christopher Carr, managing member, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Mitchell L. Herren oversees the case. Mark J. Lazzo, at Mark J Lazzo PA, is the Debtor's legal counsel. CELEST INVESTMENTS: Hires Soffan Law PC as a Bankruptcy Counsel --------------------------------------------------------------- Celest Investments, LLC seeks approval from the U.S. Bankruptcy Court for the District of Massachusetts to employ Soffan Law PC as a bankruptcy counsel. The firm will provide these services: a. advising the Debtor with respect to its powers and obligations as debtor-in-possession and the continued management and operation of its business and assets; b. attending meetings and negotiating with counsel to creditors and other parties-in-interest and responding to creditor inquiries, and in negotiations with counsel to the mortgage holder; c. advising the Debtor regarding its ability to initiate, if warranted, actions to collect and recover property for the benefit of its estate; d. advising and assisting the Debtor in connection with formulating its plan and sustaining its business operations. e. assisting the Debtor in reviewing, estimating and resolving claims asserted against the Debtor's estate; f. negotiating and preparing on behalf of the Debtor a feasible plan, disclosure statement, and all related documents; g. preparing necessary motions, applications, responses, proposed orders, and documents necessary for the administration of the estate; and h. preforming all other bankruptcy-related legal services for and providing all other legal advice to the Debtor that may be necessary and proper in the bankruptcy case. The firm based upon its normal and usual hourly billing rates in effect at the time that services are rendered. The firm is holding a retainer in the amount of $7,500 pocket expenses. Ilham Soffan 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: Ilham Soffan Soffan Law PC 288 Grove St. #180 Braintree, MA 02184 Tel: (413) 237-4678 Email:ilham@soffanlaw.com About Celest Investments LLC Celest Investments LLC is a limited liability company. Celest Investments LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-40084) on January 29, 2026. In its petition, the Debtor reports estimated assets of $1 million to $10 million and estimated liabilities of $1 million to $10 million. The Honorable Chief Judge Elizabeth D. Katz handles the case. DAX INTERNATIONAL: Gets Interim OK to Use Cash Collateral --------------------------------------------------------- Dax International Brokers, Inc. received interim approval from the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division, to use cash collateral through July 9. The court authorized the Debtor to use lenders' cash collateral in accordance with an approved budget to continue business operations, subject to a maximum 10% variance from budgeted amounts. As adequate protection, the court granted replacement liens to Amerant Bank, N.A. and the U.S. Small Business Administration on post-petition collateral and proceeds to the same extent and priority as their pre-petition liens. The Debtor must also make monthly adequate protection payments of $36,141 to Amerant and $10,002 to the SBA. Amerant asserts a secured claim of at least $3.06 million and a first-priority lien on substantially all non-titled assets, although lien-priority issues remain reserved for future determination. Additional safeguards include insurance coverage on collateral, regular financial reporting and Amerant's right to inspect inventory. Events of default, including appointment of a trustee, conversion or dismissal of the Debtor's bankruptcy case, violations of the order, or defaults under loan documents. Upon default, Amerant may seek expedited relief. A continued hearing is scheduled for July 9. The order is available at http://bankrupt.com/misc/DaxInternational_ICCOrder.pdf About Dax International Brokers Inc. Dax International Brokers, Inc. based in Miami, Florida, distributes kitchen, bathroom, flooring, and tile products and operates a showroom in Medley, Florida. The company provides wholesale delivery services to contractors, kitchen and bath companies, designers, interior decorators, and other wholesale customers across North, South and Central America and the Caribbean. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 26-15092) on April 22, 2026. In the petition signed by Alejandro A. Randazzo, secretary, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Corali Lopez-Castro oversees the case. Nicholas Rossoletti, Esq., at Ron S. Bilu, PA, represents the Debtor as legal counsel. DIOCESE OF EL PASO: Seeks to Extend Plan Exclusivity to Oct. 5 -------------------------------------------------------------- The Catholic Diocese of El Paso asked the U.S. Bankruptcy Court for the Western District of Texas to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to Oct. 5 and Dec. 1, 2026, respectively. The Debtor explains that the complexity of the Chapter 11 Case constitutes sufficient cause to extend the Exclusive Periods. Here, as of the Petition Date, the Diocese was defending twelve pending lawsuits involving eighteen separate plaintiffs in multiple district courts in New Mexico related to alleged decades-old clergy sexual abuse of minors and it was believed that additional claims were likely to be made. In addition, due to the number of claims and diversity of jurisdictions, number of attorneys representing the Plaintiffs, issues regarding the scope and amount of insurance coverage with multiple insurance companies providing insurance coverage over multiple policy periods over a decade, and the unique nature of Diocesan cases and the interplay between civil and ecclesiastical law, plan negotiations are complex. The Debtor claims that despite the complexity and challenges of the Chapter 11 Case, the Diocese has made significant progress in the roughly two months since filing the Chapter 11 Case. The Diocese negotiated an intricate and consensual confidentiality protocol, agreed on a bar date and commenced notice of the same, obtained approval from the Court to continue the Diocese’s essential services, negotiated a consensual form of protective order to govern discovery, sought and obtained the appointment of a mediator, and has continued negotiations toward the terms of a consensual plan of reorganization. The Motion is the Diocese's first request for an extension of the Exclusive Periods and is a modest request of approximately ninety days to file a plan and ninety days to solicit such plan. Continuing the Exclusive Periods will provide the Diocese a meaningful opportunity to negotiate with interested parties and to finalize, solicit, and confirm a plan. Further, given that these extensions will allow the Diocese to finalize the terms of a consensual plan, the extension is to the benefit of other parties in interest and will not prejudice such parties. Rather, the extension will further the Diocese's effort to preserve value and avoid litigation through a consensual plan for the benefit of all parties. The Debtor asserts that the Diocese is paying its bills for post petition services as they become due. Further, the Chapter 11 Case has only been pending for less than three months, and the Diocese is not seeking an extension to pressure creditors. The Diocese is seeking this extension to continue negotiations with its constituencies to confirm a consensual plan. The Catholic Diocese of El Paso is represented by: HUSCH BLACKWELL LLP Lynn Hamilton Butler, Esq. Tara T. LeDay, Esq. Jennifer Pollan, Esq. 111 Congress Avenue, Suite 1400 Austin, Texas 78701 Main No. (512) 472-5456 Fax No. (512) 479-1101 Email: lynn.butler@huschblackwell.com Email: tara.leday@huschblackwell.com Email: jennifer.pollan@huschblackwell.com - and - Francis H. LoCoco, Esq. 511 North Broadway, Suite 1100 Milwaukee, WI 53202 Telephone (414) 273-2100 Facsimile (414) 223-5000 Email: frank.lococo@huschblackwell.com About Roman Catholic Diocese of El Paso Roman Catholic Diocese of El Paso, Texas, oversees parishes and Catholic institutions in the El Paso region. Roman Catholic Diocese of El Paso, Texas, sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 26-30311) on March 6, 2026. In its petition, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $1 million and $10 million. Bankruptcy Judge Christopher G. Bradley handles the case. Husch Blackwell LLP, is the Debtor's counsel. DORMAN PRODUCTS: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has assigned Dorman Products, Inc. a first-time Long-Term Issuer Default Rating (IDR) of 'BB'. The Outlook is Stable. In addition, Fitch has assigned a rating of 'BB' with a Recovery Rating of 'RR4' to Dorman's proposed senior unsecured notes and a rating of 'BB+'/'RR2' to the company's secured revolving credit facility. The proceeds of the proposed notes will be used to repay existing credit facility borrowings. Dorman's ratings reflect its strong position as a supplier of largely non-discretionary automotive aftermarket parts with recurring maintenance demand. The ratings also take into consideration its platform-agnostic product portfolio of 144,000 stock-keeping units (SKUs) that provide bumper-to-bumper coverage and contribute to strong EBITDA margins. The ratings also reflect the company's Fitch-calculated gross EBITDA leverage of over 3.0x, predominantly driven by its sizable accounts receivable factoring balance and in line with its 'BB' IDR. Key Rating Drivers Non-Discretionary Demand and Asset-Light Model: Most of Dorman's net sales are derived from non-discretionary product categories, underpinning earnings stability through economic cycles. Demand is supported by structural industry tailwinds, including rising vehicle miles driven, an aging vehicle fleet and a growing vehicle parc. Its focus on replacement parts, many of which were previously available only from original equipment manufacturers or salvage yards, provides some demand resilience. Dorman's 76% branded product mix further supports pricing power and customer stickiness. Dorman operates an asset-light sourcing and outsourced manufacturing model; capital intensity is low, with capex averaging approximately 2% of net sales. This is complemented by a vertically integrated warehousing and distribution network of 38 strategically located facilities that supports high fill rates and national coverage. Fitch believes continued inventory growth to sustain the company's broad SKU coverage could become a drag on cash conversion, although the capital-light model supports FCF. High-Teen EBITDA Margins: Fitch expects Dorman's EBITDA margins to run in the high-teens to low-20% range over the next several years, which is in line with or stronger than that of many investment-grade auto suppliers. Fitch projects near-term margin compression in FY26 as higher-cost, tariff-impacted inventory flows through the system. However, continued improvements in the product mix and operating leverage on a growing revenue base will drive longer-term margin expansion. Supply Chain and Tariff Exposure: About 77% of Dorman's total product purchases are sourced from international third-party suppliers, with China representing 38% of total purchase volume as of end-2025. The company reduced its China concentration from over 50% in 2023 and maintains a diversified base of over 400 suppliers with none exceeding 10% of purchases, which will help bolster supply-chain resilience in the face of geopolitical tensions. Product Portfolio Supports Competitive Positioning: Dorman's 144,000 SKUs provide bumper-to-bumper coverage across virtually all major vehicle systems, positioning it as a scaled, broad-line aftermarket supplier differentiated from both category specialists and subscale peers. The portfolio is powertrain agnostic, which insulates the company from technology transition risk as the vehicle parc evolves. Additionally, its growing complex electronics program capitalizes on increasing electronic module content per vehicle, supporting EBITDA margins over the longer term. Accounts Receivable Factoring Facility Treatment: Fitch treats Dorman's off-balance-sheet accounts receivable factoring program as debt-equivalent obligations in its credit metrics. These programs are primarily tied to the company's aftermarket retail customers' supply-chain programs and have grown with the increase in sales over time. Outstanding factored receivables increased from $722 million at YE 2022 to $1.1 billion at YE 2025, making them the dominant component of the company's Fitch-adjusted debt. EBITDA Leverage Over 3.0x: Fitch forecasts EBITDA leverage to rise to the upper-3x range by YE 2026, declining to around 3.0x over the next several years, in line with the 'BB' IDR. Fitch projects EBITDA margins to expand toward 20%, driven by higher average selling prices and operating leverage across the company's scaled distribution platform. Dorman's Fitch-calculated EBITDA leverage of 3.5x at YE 2025 is higher than its reported EBITDA leverage due to the nearly $1.1 billion off-balance-sheet factoring that Fitch treats as debt. FCF Volatility: Dorman's Fitch-calculated FCF margins can be volatile, driven by working capital movements. A significant driver of this volatility in Fitch's calculations is fluctuations in the level of factoring, which are tied to the volume of sales to Dorman's aftermarket retail customers. Fluctuations in inventory levels could also drive FCF volatility. Peer Analysis Dorman focuses primarily on non-discretionary automotive aftermarket parts and components. The company's scale is smaller compared with other rated suppliers with significant exposure to the automotive aftermarket, such as Robert Bosch GmbH (A/Negative), The Goodyear Tire & Rubber Company (BB-/Negative), Tenneco LLC (B/Positive), and Clarios International Inc. (B/Stable). Dorman's sales are much less geographically diversified, as the majority of its revenue is derived in North America. Dorman's EBITDA leverage is lower than that of Tenneco and Clarios. However, its mid-to-high teens EBITDA margins are in line with or stronger than that of many investment-grade auto suppliers, such as BorgWarner Inc. (BBB+/Stable), Aptiv PLC (BBB/Stable) and Lear Corporation (BBB/Stable). Fitch's Key Rating-Case Assumptions - Dorman's revenues increase by mid-single digits throughout the forecast, driven by volume and SKU-led growth on an aging car parc; - EBITDA contracts in FY26, driven by tariff-related costs, then grows to the low-20% range due to higher average selling prices and operating leverage; - Accounts receivable factoring outstanding grows in line with revenue; - Capex at around 2.5% of revenue; - Management completes $100 million of share buybacks annually; - New notes are priced at around 7.0%. 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+', lower), sector characteristics ('bbb', moderate), market and competitive positioning ('bb+', higher), diversification and asset quality ('bb+', moderate), company operational characteristics ('bb', moderate), profitability ('a+', higher), financial structure ('b', higher), and financial flexibility ('a', moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the historical year 2025, 20% for the forecast year 2026, 20% for the forecast year 2027, 20% for the forecast year 2028 and 20% for the forecast year 2029. The governance assessment of 'good' has no impact. The operating environment assessment of 'aa-' has no impact. The SCP is 'bb'. To derive the Long-Term 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 - A merger or acquisition that results in higher leverage or lower margins for a sustained period; - EBITDA leverage sustained above 4.0x and EBITDA margins sustained below 15%; - Neutral to negative FCF margins. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage sustained below 3.0x and EBITDA margins sustained above 20%; - Sustained positive FCF margins. Liquidity and Debt Structure Dorman had $43 million of readily available cash on its balance sheet as of March 28, 2026. Fitch expects Dorman's liquidity to be supported by an upsized undrawn $800 million revolver that matures in 2031 following the issuance of the proposed notes and the upsizing of the revolver. Following the proposed notes issuance, Dorman's balance-sheet debt will consist of $450 million of senior unsecured notes maturing in 2034. In addition to the balance-sheet debt, Fitch treated $1.1 billion of off-balance-sheet factoring as debt at March 28, 2026, bringing the total Fitch-calculated debt to about $1.5 billion. Dorman's off-balance-sheet factoring includes some customers' supply chain programs. If the financial institutions involved in these programs curtail participation, Dorman may need to borrow from its revolver. However, it could mitigate a portion of the impact by shifting to shorter payment terms with these customers. Issuer Profile Dorman is a leading supplier of replacement and upgrade parts in the motor vehicle aftermarket industry, serving passenger cars, light, medium and heavy-duty trucks and specialty vehicles, including utility terrain vehicles and all-terrain vehicles. Date of Relevant Committee June 1, 2026 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 Dorman. 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 ----------- ------ -------- Dorman Products, Inc. LT IDR BB New Rating senior unsecured LT BB New Rating RR4 senior secured LT BB+ New Rating RR2 EEE DEVELOPMENT: Bonds Ellis Represents Rock River Secured Lenders ------------------------------------------------------------------ In the Chapter 11 bankruptcy cases of EEE Development, LLC, and its debtor-affiliates, Bonds Ellis Eppich Schafer Jones LLP filed with the United States Bankruptcy Court for the Northern District of Texas, Dallas Division, a Verified Statement pursuant to Bankruptcy Rule 2019 to inform the Court that the firm represents the Rock River Secured Lenders. According to the Verified Statement: 1. On or about May 22, 2026, the Rock River Secured Lenders retained Bonds Ellis Eppich Schafer Jones LLP to represent them as counsel in connection with the involuntary chapter 11 proceeding commenced against the alleged debtor. 2. Bonds Ellis represents the members of the Rock River Secured Lenders in each of their capacities as holders of secured claims against the Alleged Debtor. 3. Bonds Ellis does not represent nor purport to represent any other entities in connection with this Chapter 11 Case. Bonds Ellis does not represent the Rock River Secured Lenders as a "committee" and does not undertake to represent the interests of, and is not a fiduciary for, any creditor, party in interest, or other entity that has not signed a retention agreement with Bonds Ellis. In addition, the Rock River Secured Lenders do not represent or purport to represent any other entities in connection with this Chapter 11 Case. 4. Upon information and belief formed after due inquiry, Bonds Ellis does not hold any disclosable economic interests in relation to the Alleged Debtor. 5. Nothing contained in this Verified Statement is intended or shall be construed to constitute: A. a waiver or release of the rights of any of the members of the Rock River Secured Lenders to have any final order entered by, or other exercise of the judicial power of the United States performed by, an Article III court; B. a waiver or release of the rights of any of the members of the Rock River Secured Lenders to have any final orders in all non-core matters entered only after de novo review by a United States District Judge; C. consent to the jurisdiction of the Court over any matter; D. an election of remedy; E. a waiver of release of any rights of any of the members of the Rock River Secured Lenders may have to a jury trial; F. a waiver or release of the right to move to withdraw the reference with respect to any matter or proceeding that may be commenced in this Chapter 11 Case against or otherwise involving any of the members of the Rock River Secured Lenders; or G. a waiver or release of any other rights, claims, actions, defenses, setoffs or recoupments to which any of the members of the Rock River Secured Lenders are or may be entitled under the terms of their loan documents, in law or in equity, applicable law or under any agreement or otherwise, with all such rights, claims, actions, defenses, setoffs or recoupments being expressly reserved in all respects. 6. The Rock River Secured Lenders, through their counsel, reserve the right to amend or supplement this Verified Statement in accordance with the requirements of Bankruptcy Rule 2019 at any time in the future. 7. The information outlined is based on information provided to Bonds Ellis by the members of the Rock River Secured Lenders and is intended only to comply with Bankruptcy Rule 2019 and not for any other purpose. The names and addresses of each of the members of the Rock River Secured Lenders, together with the nature and amount of the disclosable economic interests held by each of them in relation to the Alleged Debtor, are: 1. Rock River Advisors, LLC 4521 Old Pond Dr. Plano, TX 75024 - and - Rock River Advisors, LLC 908 Brett Dr. Allen, TX 75013 Interest Secured Lender pursuant to the following: Promissory Note dated April 17, 2019, as may have been amended or modified from time to time * Principal balance of $1,040,000, plus accrued and unpaid fees and expenses * Deed of Trust dated May 21, 2025 (Doc. No. 2025-09098) recorded in the land records of Hunt County, Texas * Deed of Trust dated January 17, 2026 (Doc. No. 2026-01652) recorded in the land records of Hunt County, Texas Promissory Note dated October 18, 2019, as may have been amended or modified from time to time * Principal balance of $640,000, plus accrued and unpaid fees and expenses * Deed of Trust dated January 15, 2021 (Doc. No. 2021-2106) recorded in the land records of Hopkins County, Texas * Deed of Trust dated October 18, 2019 (Doc. No. 2019-16510) recorded in the land records of Hunt County, Texas 2. Danying Chen C/O Yali Zhang 2104 Misty Haven Ln. Plano, TX 75093 Interest Secured Lender pursuant to the following: Promissory Note dated March 6, 2020, as may have been amended or modified from time to time * Principal balance of $430,000, plus accrued and unpaid fees and expenses * Deed of Trust dated February 28, 2024 (Doc. No. 2024-964) recorded in the land records of Hopkins County, Texas * Deed of Trust dated March 6, 2022 (Doc. No. 2020-04406) recorded in the land records of Hunt County, Texas 3. Peilin Li 635 East 14th St. Apt 7-G New York, NY 10009 Interest Secured Lender pursuant to the following: Promissory Note dated February 11, 2022, as may have been amended or modified from time to time * Principal balance of $500,000, plus accrued and unpaid fees and expenses * Deed of Trust dated February 11, 2022 (Doc. No. 2022-04258) recorded in the land records of Hunt County, Texas * Deed of Trust dated August 11, 2025 (Doc. No. 2025-16439) recorded in the land records of Hunt County, Texas 4. Yali Zhang 2104 Misty Haven Lane Plano, TX 75093 Interest Party in interest 5. Lei Xia 4521 Old Pond Dr. Plano, TX 75024 Interest Party in interest Attorneys for Rock River Advisors, LLC, Danying Chen, Peilin Li, Yali Zhang, and Lei Xia: Eric T. Haitz, Esq. BONDS ELLIS EPPICH SCHAFER JONES LLP 420 Throckmorton Street, Suite 1000 Fort Worth, TX 76102 Tel: (817) 529-2732 Fax: (817) 405-6902 Email: eric.haitz@bondsellis.com About EEE Development, LLC Creditors Avishkar Property Management, LLC, Rajiv Roy, and Rajiv Miil Holding Company Inc. filed an involuntary Chapter 11 petition against EEE Development, LLC (Bankr. N.D. Texas Case No. 26-80006) on May 8, 2026. The Hon. Stacey G Jernigan presides over the case. The petitioners are represented by Frank Jennings Wright, Esq. On June 3, 2026, the court held a status conference on the chapter 11 involuntary petition against EEE Development. No representative or principal from the debtor appeared during this Status Conference. Thereafter, the court directed the United States Trustee to appoint a Chapter 11 Trustee for the Debtor's estate. Bonds Ellis Eppich Schafer Jones LLP represents the Rock River Secured Lenders. ELK GROVE: Fitch Assigns 'BB-(EXP)' LongTerm IDR, Outlook Positive ------------------------------------------------------------------ Fitch Ratings has assigned Elk Grove Village Property LLC (Elk Grove) a Long-Term Issuer Default Rating (IDR) of 'BB-(EXP)'. Fitch has also assigned Elk Grove's $850 million senior secured notes a rating of 'BB-(EXP)'. The Rating Outlook is Positive. The 'BB-' rating reflects the project's contracted revenue profile, anchored by a 15-year triple-net lease with CoreWeave, Inc. (BB-/Positive). Completion risk is present but mitigated by a guaranteed maximum price (GMP) contract with an experienced contractor and an advanced stage of construction. However, the project faces power supply risk. Cash flows during the initial lease term are sufficient to fully amortize the debt under Fitch's rating case assumptions, eliminating lease renewal risk. Debt provisions are weaker than typical project finance protections. Although the Project Life Coverage Ratio (PLCR) at debt maturity is consistent with a higher rating, the rating remains constrained by CoreWeave's credit profile. The IDR is equalized with the debt rating, given their senior position and lack of subordinated liabilities. KEY RATING DRIVERS Completion Risk - Stronger Advanced Stage of Construction; GMP Finalized and No Termination for Delays The completion risk profile is supported by the relatively straightforward nature of data center construction, the use of an experienced contractor, and the advanced stage of project completion. Cost escalation risk is mitigated because the GMP contract is finalized, all owner-furnished, contractor-installed (OFCI) equipment has been secured, and project-level contingencies are reasonable. The LTA said delays have occurred across certain data halls due to landlord- and tenant-related matters. The parties are addressing these issues through discussions on a lease amendment, and no rent credits have been applied. Data Halls 1-3 are operational and Data Hall 4 is expected to be delayed due to earlier chiller delays. Management does not expect any rent credits as these are tenant led delays. As per the LTA report, Data Halls 5 and 6 remain ahead of schedule; however, their commencement is subject to energization of the new substation, which isn't expected until 2Q27. This risk is partly mitigated because the tenant's termination right was tied to completion of Data Hall 1, which is now operational. In addition, substation delays qualify as force majeure, shielding the project from rent credits for few months beyond the outside date. A fully funded six-month DSRA, and phased completion can help absorb delay-related costs for up to 14 months. Supply Risk - Midrange Substation Under Construction; Bridging Power Available for Partial Capacity The project is exposed to power supply risk because permanent service depends on Commonwealth Edison (ComEd) completing a new substation and related transmission works, with energization expected in the second quarter of 2027 per management and the LTA. This risk is partly mitigated by 69 MW of active bridging power, which is sufficient to support commissioning through Data Hall 4. However, Data Halls 5 and 6 cannot become operational until the substation is energized if no additional bridging power is secured. The substation was delayed due to easement conflicts, permitting and broader transmission system constraints, which have since been resolved. The LTA states that ComEd mobilized on site in March 2026, has all long-lead equipment in stock, and is tracking progress through biweekly meetings. In addition, substation delays qualify as force majeure, shielding the project from rent credits for few months beyond the outside date. Liquidity support, including a six-month DSRA helps absorb extended delays for up to 14 months. Revenue Risk - Stronger No Lease Renewal Risk The project benefits from contracted revenue for the initial 180-month lease with CoreWeave. Cash flows from the lease are sufficient to fully amortize the debt in the initial lease term under the Fitch rating case assumptions, eliminating lease renewal risk. The project also benefits from the facility's prime location, strong fiber connectivity, low power prices, robust hyperscale demand in Chicago, and rising barriers to entry. Operation Risk - Stronger Triple Net Lease, SLAs with Termination Rights This assessment reflects a triple-net lease under which major costs including electricity, operations, and maintenance are fully passed through to the tenant. The lease includes service level agreements and provides outage credits for certain service interruptions, with tenant termination rights upon qualifying critical interruptions. These operational risks are partially mitigated by electrical, mechanical, and cooling redundancies, as well as Prime Data Centers' experience managing six operational data center sites. Infrastructure Development & Obsolescence Risk - Neutral Newly Built Data Center, Low Maintenance Exposure to technological obsolescence is limited, as debt can fully amortize within the lease term under Fitch's rating case. The core mechanical and electrical systems are expected to have useful lives extending beyond the initial lease term, reducing the likelihood of material capital requirements. Further, any capex is fully reimbursed by the tenant within the lease term. Debt Structure - 1 - Midrange Refinance Risk, Additional Debt Allowance The proposed fixed-rate senior secured notes mature in 2031, creating refinancing risk, particularly given the sponsors' limited refinancing track record. This risk is partly mitigated by the absence of reliance on lease renewals to repay debt and by liquidity support, including an upfront fully funded six months DSRA. Debt provisions are weaker than typical project finance structures. While issuer complies with SPE restrictions, HoldCo default could trigger cross-default. This risk is limited because HoldCo cannot incur debt or engage in any business other than holding the issuer's equity. Before completion, the issuer may raise up to $50 million under a letters of credit basket; after final commencement, it may incur additional first- or junior-lien debt up to 50% of the last-12-month net operating income (NOI), in each case without a rating affirmation. While no provisions are directly tied to raising incremental debt based on a loan-to-cost (LTC) ratio, these provisions could push leverage to 95% pre-completion from the current level of 89%. High LTC during construction is partly offset by the project's advanced construction stage. Three data halls are already operational, and only about 20% of the budget remains. This strengthens sponsor alignment and completion incentives. Peer Analysis The closest peers are WULF Compute, LLC (BB/Stable) and Cipher Compute LLC (BB-/Stable). While WULF and Cipher face higher construction risk, both benefit from a lease supported by a Google guarantee. Their ratings are constrained by completion risk and a limited operating track record, with additional pressure from the absence of a fixed-price construction contract and an aggressive construction schedule. In comparison, Elk Grove faces lower completion risk, mitigated by a GMP contract with an experienced contractor, but is exposed to the tenant's weaker credit profile. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of CoreWeave's rating or a revision of its Outlook could lead to a similar action on issuer's senior notes; - Significant construction delays or delay in substation resulting in degradation in the financial profile of the project with decline in the minimum PLCR below 1.0x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of CoreWeave's rating could lead to a similar action on issuer's senior notes, provided that the PLCR remains above1.05x; - Timely completion of the power utility infrastructure by ComEd and satisfactory commissioning of Data Halls 4-6. Financial Profile Fitch's rating case assesses project cash flows over the initial 15-year lease term, assuming annual lease escalations and the maximum additional debt allowance of $119 million (including the $50 million letters of credit basket and 50% NOI basket). Although opex and major maintenance costs are passed through to the tenant under the NNN lease structure, Fitch applies a capex stress to assess the effect on cash liquidity before reimbursement begins. The rating case applies a 150 bps stress to the refinancing interest rate, resulting in a 9% refinancing rate in year five. Under these assumptions, the PLCR at refinancing in year 5 (2031) is 1.33x with five-year DSCR average at 1.13x. Although this PLCR is commensurate with a higher rating level, the rating is constrained by the counterparty's credit profile. TRANSACTION SUMMARY Prime Data Centers, through its subsidiary Elk Grove Village Property, LLC, is issuing $850 million of senior secured notes to fund a 72 MW IT-capacity hyperscale data center in Elk Grove Village (Chicago), Illinois. The data center comprises six data halls of 12 MW each, constructed by Clune Construction Company under a GMP contract with completion of the last data hall in December 2026. The campus is 100% pre-leased to CoreWeave (BB-/Positive) under a 15-year lease with two seven-year extension options. As of June 2026, Data Halls 1, 2, and 3 are complete. The assets, rights, responsibilities, and cash flows of the project are ring-fenced within a bankruptcy-remote special purpose entity. The final ratings are contingent upon the receipt by Fitch of final documents conforming to information already received and reviewed as well as the final pricing of the bonds. SECURITY The notes carry a first lien on all Elk Grove Village Property's assets, contracts, and cash flows during construction and post-commercial operation date, as well as a pledge of equity of the issuer by its direct parent. Date of Relevant Committee 26-May-2026 Climate Vulnerability Signals The results of Fitch's Climate.VS screener did not indicate an elevated risk for Elk Grove Village Property LLC. ESG Considerations Fitch does not provide ESG relevance scores for Elk Grove Village Property, LLC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. Entity/Debt Rating ----------- ------ Elk Grove Village Property LLC LT IDR BB-(EXP) Expected Rating Elk Grove Village Property LLC/Senior Secured Notes – Scenario 1/1 LT LT USD 850 mln bond/note LT BB-(EXP) Expected Rating F-STAR SOCORRO: Seeks to Extend Plan Exclusivity to Aug. 31 ----------------------------------------------------------- F-Star Socorro, L.P. and its affiliated debtors asked the U.S. Bankruptcy Court for the Southern District of Texas to extend their exclusivity periods to file a plan of reorganization and obtain acceptance thereof to Aug. 31 and Nov. 2, 2026, respectively. The Debtors explain that the scale and complexity of their businesses, which requires the companies to navigate complex issues during these chapter 11 cases, support the need for the extension of the Exclusive Periods. In addition, the Debtors have a complex capital structure with over $700 million in total funded debt, including the Madison Loan, Alameda Corebridge Loan, and Joe Battle Corebridge Loan. The Debtors claim that they have made substantial good-faith progress in these chapter 11 cases. During the initial phase of these cases, the Debtors and their advisors spent significant time stabilizing the Debtors' businesses and carrying out their responsibilities as debtors in possession. The Debtors have appropriately devoted substantial time and resources since the Petition Date to working collaboratively with trade creditors, project participants, and other key stakeholders to resume construction of the remaining Villas and advance pending sales. Moreover, the Debtors continue to make progress toward a global resolution with Madison while advancing multiple parallel initiatives designed to move these chapter 11 cases toward a consensual and confirmable chapter 11 plan. This is evidenced by the consensual extensions of Madison's deadline to object to the First Motion. The Debtors believe that, in light of the progress made in these cases, it is reasonable to request additional time to prepare, file, and confirm a chapter 11 plan. Granting the requested extensions will facilitate the Debtors' efforts by providing the Debtors with a full and fair opportunity to propose and solicit a plan without the distraction of competing plans. The Debtors states that they have engaged with these stakeholders regarding a variety of issues in these chapter 11 cases and are not seeking an extension of the Exclusive Periods as a tactic. Rather, the Debtors seek, in good faith, an extension of the Exclusive Periods so they have sufficient time to continue negotiations with creditors and to build a comprehensive plan of reorganization. Accordingly, an extension of the Exclusive Periods will not harm or prejudice any of the Debtors’ creditors. The Debtors assert that termination of the Exclusive Periods would adversely impact the Debtors' efforts to preserve and maximize the remaining value of their estates and the progress of these chapter 11 cases. If this Court were to deny the Debtors' request for an extension of the Exclusive Periods, any party in interest would be free to propose a chapter 11 plan for the Debtors. Such a ruling would cause substantial, if not irreparable, harm to the Debtors’ efforts to preserve and maximize the value of their estates. The Debtors further assert that an extension of the Exclusive Periods will provide the companies with adequate time to complete their plan formulation, solicitation, and confirmation. Such an extension will benefit all stakeholders. The Debtors thus submit that sufficient cause exists to extend the Exclusive Periods pursuant to section 1121(d) of the Bankruptcy Code. Counsel to the Debtors: Nicholas J. Hendrix, Esq. O'MELVENY & MYERS LLP 2801 North Harwood Street, Suite 1600 Dallas, Texas 75201 Tel: (972) 360-1900 Fax: (972) 360-1901 Email: nhendrix@omm.com AND Julian Gurule, Esq. 400 South Hope Street, 19th Floor Los Angeles, California 90071 Tel: (213) 430-6000 Fax: (213) 430-6407 Email: jgurule@omm.com - and - Peter Friedman, Esq. Matthew Kremer, Esq. Diana M. Perez, Esq. 1301 Avenue of the Americas, Suite 1700 New York, New York 10019 Tel: (212) 326-2000 Fax: (212) 326-2061 Email: pfriedman@omm.com mkremer@omm.com dperez@omm.com About F-Star Socorro L.P. F-Star Socorro, L.P., sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90607) on Nov. 4, 2025, listing up to $50,000 in both assets and liabilities. Judge Alfredo R Perez presides over the case. O'Melveny & Myers, LLP, led by Nicholas J. Hendrix, is serving as the Debtor's legal counsel. FAT BRANDS: Accord with WBS Ad Hoc Group, UCC & Noteholders OK'd ---------------------------------------------------------------- Judge Alfredo R. Perez of the U.S. Bankruptcy Court for the Southern District of Texas granted the motion of FAT Brands, Inc. and its affiliated debtors for entry of an order approving the terms of a proposed settlement by and among the Debtors, the WBS Ad Hoc Group, the Resid Noteholders and the the Official Committee of Unsecured Creditors pursuant to Bankruptcy Rule 9019. The Debtors are authorized to enter into and perform under the Settlement Term Sheet. The Parties agree to the terms of the Global Settlement, which shall be (a) memorialized in the Debtors' Chapter 11 Plan and other definitive documentation reasonably acceptable to the Committee, the Debtors, the Resid Noteholders and the WBS Ad Hoc Group and (b) subject to approval by the Court of the 9019 Order and confirmation of the Debtors' Chapter 11 Plan; provided that the Committee shall not object to any relief sought at the hearing in respect of the sale of substantially all of the Debtors' assets and final approval of the DIP Facility. All objections to the Motion that have not been withdrawn, waived, or settled are overruled. The Global Settlement is approved in all respects as being in the best interest of the Debtors' estates and their creditors; provided that approval of the terms of the Global Settlement relating to the Chapter 11 Plan are subject to sections 1123, 1125, 1126, 1128, and 1129 of the Bankruptcy Code and confirmation of the Chapter 11 Plan by the Bankruptcy Court. The WBS Ad Hoc Group (or the NewCos, as applicable) shall fund the Funding Amount as a condition precedent to the closing of the Credit Bids, on the terms and conditions set forth in the Global Settlement. The NewCos shall place their allocable share of the Funding Amount into a segregated account (the "Plan Funding Account") prior to the closing of the Credit Bid Transactions to be used in accordance with the Wind-Down Budget. The Debtors are authorized to use the funds in the Plan Funding Account solely in accordance with the Wind-Down Budget. The Plan Funding Account shall not be subject to the control, liens, security interests, or claims of any secured party, including the DIP Liens, the FBG DIP Superpriority Claims, the Twin DIP Superpriority Claims, the Adequate Protection Liens, and the Adequate Protection Claims (as those terms are defined in the proposed Final DIP Order) and any liens or claims of any other party. In the event of a conversion of any or all of the Chapter 11 Cases to cases under chapter 7 of the Bankruptcy Code or a termination of the Global Settlement following the closing of the Credit Bid Transactions, the Allocation and Recovery Waterfall shall govern the distribution of proceeds obtained by such chapter 7 trustee through the monetization of the Debtors' assets. Each Sale Order approving a Credit Bid Transaction shall provide that (a) it is a condition precedent to the closing of each Credit Bid Sale that this Settlement remains effective and that the Funding Amounts have been paid (the "Settlement Closing Condition") and (b) any waiver of the Settlement Closing Condition shall require the consent of each of the Parties. Global Settlement On February 13, 2026, the Resid Noteholders filed a Complaint for Declaratory Judgment to Determine the Validity, Extent, and Priority of Liens and Interests in Property, initiating an adversary proceeding styled 3|5|2 Cap. GP LLC, on behalf of 3|5|2 Cap. ABS Master Fund LP v. FAT Brands Inc., et. al, Adv. Proc. No. 26-90126 (ARP) (Bankr. S.D. Tex. 2026). The Resid Noteholders seek a declaratory judgment that any FAT Brands Securitization Receivables are property of the Resid Issuer's estate and are subject to the Resid Noteholders' properly perfected prepetition security interest in all property of the Resid Issuer. On January 28, 2026, the Debtors commenced mediation with the WBS Ad Hoc Group in an effort to consensually resolve certain issues related to the Chapter 11 Cases, including the Emergency Motion of Debtors for Entry of Interim and Final Orders (I) Authorizing Debtors to Use Cash Collateral; (II) Granting Adequate Protection for the Use of Cash Collateral; (III) Scheduling a Final Hearing; and (IV) Granting Related Relief; The Ad Hoc Group of Securitization Noteholders' Motion for an Order Appointing a Chapter 11 Trustee for the Securitization Debtors (the "Trustee Motion"); The Ad Hoc Group of Securitization Noteholders' Emergency Motion for an Order (I) Temporarily Suspending Andrew Wiederhorn as Chief Executive Officer, (II) Vesting Authority in the Debtors' Special Committee, and (III) Granting Related Relief (the "Suspension Motion"); the Debtors' corporate governance; and debtor-in-possession financing for the Chapter 11 Cases. On February 13, 2026, the Committee joined the Mediation pursuant to the Stipulated Order Joining Additional Parties to the Mediation. Among other parties, both the Committee and the Resid Noteholders filed objections to entry of the Final DIP Order. Specifically, (i) on March 19, 2026, and May 1, 2026, the Resid Noteholders filed Resid Challenge, and (ii) on May 4, 2026, the Committee filed the Objection to Final Approval of Debtors' DIP Motion. The compromises reached in the Global Settlement, largely, resolve issues regarding entry of the Final DIP Order and the Sale Orders. The Global Settlement does three key things: (i) resolves the Committee Objections and the Resid Noteholders' Objections, which disposes of complex issues that, otherwise, would have to be addressed in order for the Debtors to obtain entry of the Sale Orders and the Final DIP Order, which will allow for entry of the Final DIP Order and the Sale Orders; (ii) lays the foundation of a proposed chapter 11 plan that the Debtors agree to file, supported by the WBS Ad Hoc Group, the Resid Noteholders, and the Committee; and (iii) provides the funding needed to reach confirmation and consummation of a chapter 11 plan, pay administrative and priority claims in full, and fund the wind-down of the Debtors, including the formation of a Liquidation Trust which will likely offer distribution to unsecured creditors (vis-a-vis Liquidating Trust interests). In the interest of resolving outstanding objections to entry of the Sale Orders and the Final DIP Order, the WBS Ad Hoc Group has agreed to contribute significant collateral, including proceeds thereof, and assume certain liabilities that it would otherwise not be required to assume under the Bankruptcy Code to be used to fund and otherwise effectuate the aforementioned wind-down of the remaining Debtors' estates and distributions to creditors. The Allocation and Recovery Waterfall would, upon entry of the 9019 Order, bind the Debtors' successors, including a chapter 7 trustee, even if the proposed chapter 11 plan is not confirmed. The Debtors view this as a substantial benefit. That is because approval of the Allocation and Waterfall Recovery, at this juncture (as opposed to as part of the confirmation process), ensures the benefits of the WBS Ad Hoc Group's concessions (as to the disposition of its collateral including the proceeds thereof) will inure to the benefit of the Debtors' estates, creditors, and stakeholders even in the unlikely event the Debtors are unable to confirm and consummate the proposed chapter 11 plan. Critically, however, the Global Settlement does not dictate the terms of the Chapter 11 Plan -- nor, given the Debtors' preservation of a fiduciary out, does it require the Debtors to pursue confirmation of the Chapter 11 Plan incorporating the Global Settlement in the event that the Debtors identify an alternative restructuring or transaction that, in the exercise of their fiduciary duties, offers greater benefit to the Debtors' estates. The Global Settlement merely establishes a framework pursuant to which the Debtors have a consensual path to finalize the Sale Transactions and conclude the Chapter 11 Cases in an orderly and responsible manner. That path is only possible as a result of the concessions made by (i) the WBS Ad Hoc Group, both as to the WBS Ad Hoc Group's agreement to inject additional liquidity, through NewCos' payment of the Funding Amount, and as to the disposition of assets, including cash and proceeds of assets, that constitute their collateral, that will ensure sufficient liquidity is available to consummate the Sale Transactions and to confirm and consummate the Chapter 11 Plan; (ii) the Resid Noteholders, as to the settlement of the Resid Adversary Proceeding and withdrawal, with prejudice, of the Resid Noteholders' Objections; and (iii) the Committee, as to settlement of their Challenge rights and various litigation claims. Importantly, the compromises reached by the Parties in the Global Settlement avoid complex, time-consuming, and expensive litigation -- the outcome of which is highly uncertain and would likely exhaust the Debtors' liquidity and possibly force a conversion of the Chapter 11 Cases to a chapter 7 liquidation absent the agreements reached in the Global Settlement embodied in the Settlement Term Sheet. The Debtors have determined, in the exercise of their good-faith business judgment and in consultation with their advisors, that it is in the best interests of the Debtors, their estates, creditors, and all stakeholders, for the Parties to enter into the Settlement Term Sheet and obtain the benefits of the Global Settlement for the benefit of all stakeholders. A copy of the Settlement Term Sheet and the Court's Order, is available at https://urlcurt.com/u?l=p5h5e9 from PacerMonitor.com. A copy of the Motion to Approve Settlement is available at https://urlcurt.com/u?l=6aYqF1 from PacerMonitor.com. About FAT (Fresh. Authentic. Tasty.) Brands FAT Brands (NASDAQ: FAT) -- http://www.fatbrands.com/-- is a global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 18 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli's, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo's Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses. FAT Brands franchises and owns over 2,200 units worldwide. Fat Brands Inc. and 181 subsidiaries sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 26-90126) on Jan. 26, 2026. In its petition, Fat Brands listed estimated assets and liabilities more than $1 billion. The Honorable Bankruptcy Judge Alfredo R. Perez handles the case. Latham & Watkins LLP is serving as legal counsel to the Company. GLC Advisors & Co., LLC is serving as investment banker, and Huron Consulting Services LLC is serving as financial advisor. Omni Agent Solutions, Inc., is serving as claims, noticing and solicitation agent. Pachulski Stang Ziehl & Jones LLP serves as conflicts and mediation counsel and BDO USA, P.C. as tax services provider. The Official Committee of Unsecured Creditors retained Paul Hastings LLP as counsel; and M3 Advisory Partners, LP as financial advisor. White & Case LLP is representing the Ad Hoc Group of Securitization Noteholders. Greenberg Traurig, LLP represents UMB Bank, National Association, solely in its capacity as Trustee to certain series of notes. Spencer Fane LLP represents The Association of GACC Franchisees, Inc. along with numerous Great American Cookie franchisees. Dady & Gardner, P.A. serves as co-counsel to the Association and the franchisees. FIREHOUSE GRILL: Seeks to Extend Plan Exclusivity to Aug. 24 ------------------------------------------------------------ Firehouse Grill, Inc. and its affiliates asked the U.S. Bankruptcy Court for the Northern District of Illinois to extend its exclusivity period to file a plan of reorganization to Aug. 24, 2026. The Debtors are six related entities which have simultaneously filed chapter 11 cases. The related entities consist of four operating restaurants and two single asset real estate entities from which two of the restaurant debtors operate. Each of the entities is owned and/or controlled by George Patrick Fowler. The Debtors explain that they are exploring necessary infusion of new value for their plans, in order to comply with the Absolute Priority Rule under Section 1129(b)(2) of the Bankruptcy Code, and Fowler is in the process of negotiating with several parties to obtain the necessary new value. The Debtors are also in need of an extension of time to file their plans while the restaurants assess financial results from each location. The Debtors continue to work on their cashflow projections to accompany their plans of reorganization. The Debtors assert that the requested extension is attributable to circumstances for which the Debtors should not justly be accountable. The Debtors further assert that this Motion is not being brought to cause delay, no party will be prejudiced by the granting of the requested extension, and no prior extensions have been requested. Counsel to the Debtors: Scott R. Clar, Esq. CRANE, SIMON, CLAR & GOODMAN 135 South LaSalle Street, Suite 3950 Chicago, IL 60603 Telephone: (312) 641-6777 E-mail: sclar@cranesimon.com About Firehouse Grill Inc. Firehouse Grill Inc. is a restaurant operator providing prepared food and beverage services to customers through its dining location. The company participates in the food service sector, focusing on in-person dining and related hospitality operations. Firehouse Grill Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-00903) on January 20, 2026. In its petition, the Debtor listed up to $1 million in estimated assets and up to $10 million in estimated liabilities. The Debtor tapped Scott R. Clar, Esq., at Crane, Simon, Clar & Goodman as counsel and Weinberg Barton & Company as accountant. FS KKR CAPITAL: Fitch Rates $900MM 7.5% New Unsec. Notes 'BB+(EXP)' ------------------------------------------------------------------- Fitch Ratings has assigned an expected debt rating of 'BB+(EXP)' to the $900 million 7.5% proposed senior unsecured notes issued by FS KKR Capital Corp. (FSK; BB+/Negative) due August 1, 2031. Proceeds from the issuance are expected to be used to repay outstanding borrowings and therefore are not expected to affect leverage. Key Rating Drivers Persistent Asset Quality Issues: FSK's rating reflects continued deterioration in its asset quality, driven by persistent elevated non-accruals and realized losses; high paid-in-kind (PIK) income, below-average cash dividend coverage and a smaller asset coverage cushion, which could face further pressure from negative portfolio valuation marks and realized losses. Negative Outlook: The Negative Outlook reflects Fitch's expectation that FSK's asset-quality issues will persist, further diminishing the asset coverage cushion. Additionally, cash dividend coverage could remain under pressure, even with the recently announced dividend cut, should non-accruals increase or PIK remain elevated. Further deterioration in asset quality metrics, particularly if it continues to reduce the asset coverage cushion, could result in a downgrade. Sector Constraints: Rating constraints for BDCs include the market impact on leverage, dependence on access to the capital markets to fund growth and limited ability to retain capital. Fitch believes BDCs will continue to face a competitive environment, weaker earnings and dividend coverage metrics, and pressure on asset quality metrics in 2026. Additionally, artificial intelligence presents disruption risk for software companies, which represented around 16% of FSK's portfolio at fair value at 1Q26, although disclosure differences make peer comparisons difficult. Strong Affiliations: FSK's rating continues to reflect its access to investment resources and risk management capabilities derived from its affiliations with KKR Credit Advisors (U.S.), LLC and Franklin Square Holdings, L.P., solid liquidity and funding flexibility. Sponsor Support Could Reduce Leverage: On May 11, 2026, FSK announced a $300 million support package from KKR & Co. Inc. (KKR; A/Stable), including a $150 million investment in FSK cumulative convertible perpetual preferred stock and a $150 million tender offer for FSK stock. KKR also agreed to waive its portion of incentive fees (50%) for four quarters, beginning in 2Q26. While the support package is expected to help fund FSK's newly announced $300 million share repurchase program, Fitch expects FSK to prioritize reducing leverage to its target range of 1.0x-1.25x while maintaining an asset coverage cushion above 11%. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A material increase in non-accrual levels or meaningful realized credit losses that leads the asset coverage cushion to deteriorate below 11%; - A sustained decline in unsecured debt below 25% of total debt outstanding; - A deterioration in cash-based NII coverage of the dividend; - An elevation in the portfolio's risk profile, including a material decline in first-lien loans as a percentage of the portfolio. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Fitch does not expect to upgrade the rating over the intermediate term due to the Negative Outlook. Factors that Could Lead to an Outlook Revision to Stable - A reduction in non-accrual levels without the recognition of meaningful realized losses; - A sustained increase in the asset coverage cushion to 25%; - A reduction in PIK as percent of interest and dividend income and an improvement in cash earnings coverage of the dividend; - Maintenance of sufficient liquidity and unsecured debt of at least 35% of total debt; - Maintenance of consistent core earnings performance. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The expected unsecured debt rating is equalized with the ratings assigned to FS KKR Capital Corp.'s existing unsecured debt, as the new notes will rank equally in the capital structure. The alignment of the expected unsecured debt rating with the Long-Term IDR reflects average recovery prospects under a stress scenario, as FS KKR Capital Corp. is subject to a 150% asset coverage limitation and has a meaningful unsecured funding component. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The expected unsecured debt rating is primarily linked to the Long-Term IDR and is expected to move in tandem, although the notching could change if there is a shift in funding mix or reduction in reduction in available asset coverage, which Fitch believes impacts the recovery prospects of the instruments in a stress scenario. ADJUSTMENTS The Standalone Credit Profile (SCP) has been assigned in line with the implied SCP. The Asset Quality score has been assigned below the implied score due to the following adjustment reason: Underwriting standards (negative). The Earnings & Profitability score has been assigned below the implied score due to the following adjustment reason: Portfolio risk (negative). The Capitalization & Leverage score has been assigned below the implied score due to the following adjustment reason: Risk profile and business model (negative). The Funding, Liquidity & Coverage score has been assigned below the implied score due to the following adjustment reason: Liquidity coverage (negative). Date of Relevant Committee 07-Apr-2026 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 ----------- ------ FS KKR Capital Corp. senior unsecured LT BB+(EXP) Expected Rating GALINDO EMPIRE: Gets Interim OK to Use Cash Collateral ------------------------------------------------------ The Galindo Empire, LLC received interim approval from the U.S. Bankruptcy Court for the Southern District of Texas to use cash collateral to fund operations. Under the interim order, the Debtor is authorized to use cash collateral based on a court-approved operating budget through June 28 or until a final order is entered or a Chapter 11 plan is confirmed. The Debtor is not allowed to exceed any budget line item or the overall budget by more than 10% without further court approval or the consent of the affected secured creditor. The Debtor's cash collateral consists primarily of customer payments and accounts receivable, subject to liens held by pre-petition lenders including the U.S. Small Business Administration, which secures an approximately $496,814 EIDL loan, and other secured lenders such as Mulligan Funding/FinWise Bank, Flash Funding, LLC, and Fenix Capital Funding, LLC. As adequate protection, secured creditors will receive replacement liens on post-petition assets, with the same priority and enforceability as their pre-petition liens. These replacement liens do not apply to Chapter 5 avoidance actions and related proceeds. In addition, the SBA will receive monthly payments of $1,500 beginning 30 days after the petition date and continuing until confirmation of a Chapter 11 plan. All parties retain the right to challenge the validity, extent, priority, or amount of any asserted lien or claim. A copy of the court's order and the Debtor's budget is available at https://tinyurl.com/483b2rwf from PacerMonitor.com. A final hearing is scheduled for July 1. Galindo Empire's business operations remain fundamentally profitable at the gross level, with consistent revenue exceeding $2.3 million in both 2024 and 2025, but that it became cash-flow insolvent due to excessive merchant cash advance obligations requiring approximately $15,000 per week in payments prior to bankruptcy. According to the Debtor, these obligations -- not operational weakness -- caused its financial distress, and the business would be sustainable if relieved of those burdens. About The Galindo Empire LLC The Galindo Empire, LLC is a Texas-based limited liability company. The Galindo Empire sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-33599) on May 22, 2026. At the time of the filing, the Debtor disclosed estimated assets between $100,001 and $1 million and estimated liabilities between $100,001 and $1 million. Honorable Bankruptcy Judge Jeffrey P. Norman oversees the case. The Debtor is represented by Jeremy Thomas Wood, Esq., at the Law Office of Jeremy T. Wood, PLLC. GENERATIONS ON 1ST: Affiliate Gets Extension to Use Cash Collateral ------------------------------------------------------------------- Parkside Place, LLC, an affiliate of Generations on 1st, LLC, received another extension from the U.S. Bankruptcy Court for the District of North Dakota to use the cash collateral of secured creditor Red River State Bank. The court order approved the Debtor's 12th stipulation with Red River State Bank, allowing it to use the secured creditor's cash collateral for the period beginning May 19 and continuing through July 7, consistent with the approved budget. As protection, Red River State Bank will receive replacement liens on the Debtor's post-petition accounts receivable, intangibles, cash, and rents, with the same priority as its pre-petition liens, to the extent its original collateral declines in value. In addition, the bank will receive a monthly payment of $19,266.67. The stipulation is available at https://shorturl.at/Fhcuk from PacerMonitor.com. The court also continued the hearing on the Debtor's cash collateral motion to July 7. About Generations on 1st and Parkside Place Generations on 1st, LLC, a company in Fargo, N.D., and its affiliate Parkside Place, LLC, filed Chapter 11 petitions (Bankr. D. N.D. Lead Case No. 25-30002) on January 6, 2025. In their petitions, Generations on 1st reported total assets of $13,567,037 and total liabilities of $12,137,102 while Parkside Place reported $7,221,882 in assets and $5,599,522 in liabilities. Judge Shon Hastings handles the cases. The Debtors are represented by Maurice VerStandig, Esq. at The Dakota Bankruptcy Firm. Red River State Bank, as lender, is represented by Drew J. Hushka, Esq., at Vogel Law Firm. GOODYEAR TIRE: Fitch Assigns 'BB-' Rating on Sr. Unsecured Notes ---------------------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating with a Recovery Rating of 'RR4' to The Goodyear Tire & Rubber Company's proposed issuance of senior unsecured notes. Goodyear's Long-Term Issuer Default Rating (IDR) is 'BB-' and the Rating Outlook is Negative. Goodyear's ratings incorporate Fitch's expectation that the Goodyear Forward strategic plan will bring the company's credit metrics sustainably back in line with its 'BB-' IDR over the longer term. The Negative Outlook reflects the cash needed to implement the initiatives. Although the plan is on track, tariffs, higher commodity costs and weaker market conditions have masked many of the benefits. Fitch may revise the Outlook to Stable if the company maintains EBITDA leverage in the 3.0x-4.0x range over the medium term. Fitch may also downgrade the ratings if Goodyear appears unable to meet its 'BB-' sensitivities for an extended period. Key Rating Drivers Use of Proceeds: Goodyear plans to use proceeds from the proposed notes to repay, redeem or repurchase its $700 million of 4.875% senior unsecured notes due 2027. The remaining proceeds will be used for general corporate purposes. Prior to the repayment, redemption or repurchase of the 4.875% notes, Goodyear plans to temporarily apply a portion of the proceeds to repay amounts outstanding on certain credit facilities. Goodyear Forward Plan Progressing: The Goodyear Forward strategic plan originally aimed to reduce costs by about $1.0 billion while realizing $300 million of benefits from adjusting tire offerings. Goodyear also targeted over $2.0 billion of gross proceeds from selling its chemical and off-the-road (OTR) tire businesses, as well as the Dunlop brand. Cash from the divestitures was to be used to repay debt and cover certain restructuring costs, reducing Goodyear's net leverage to a target range of 2.0x-2.5x by YE 2025 (based on the company's calculations). Since the plan began, Goodyear has sold its OTR and chemical businesses, as well as the Dunlop brand. The company has reduced debt, and cost savings are ahead of its original expectations. Goodyear estimates that the plan's cumulative global cost savings and North American price/mix benefits through YE 2026 will total nearly $1.6 billion. Cash costs to implement the plan have also been below original expectations. Although Goodyear's EBITDA margin declined in 2025 due to tariffs and market conditions, the decline would have been more significant without the Goodyear Forward benefits. Iran Conflict Effects: The Iran conflict has negatively affected the global tire industry. About 70% of Goodyear's raw materials are influenced by the cost of oil, and it expects the higher prices since the conflict began to drive about a $200 million raw material headwind in the second half of 2026. Fitch expects the company will be able to offset a substantial portion of this via pricing and mix, as Goodyear's competitors are exposed to similar cost increases. However, higher costs will likely result in some near-term margin pressure. Higher vehicle fuel prices are also likely to lead to lower vehicle miles traveled, which traditionally has led to lower tire industry demand. Tariff Effects: Fitch expects Goodyear to be able to manage the effects of tariffs, although they have put some near-term pressure on margins. The company has a relatively advantaged production footprint, with substantial U.S. manufacturing capacity, and Fitch expects it will be able to adjust pricing, if necessary, particularly in the replacement market. Tire industry sales volumes also tend to be relatively resilient to macroeconomic changes, although higher-end sales can be more affected than value brands. Declining Leverage: Fitch expects Goodyear's leverage to decline over the intermediate term due to a combination of lower gross debt and higher EBITDA. However, although Goodyear reduced debt substantially in 2025, lower EBITDA from weaker market conditions and tariffs led to EBITDA leverage declining to only 4.1x at YE 2025. Over the intermediate term, Fitch expects EBITDA leverage to run in the 3.0x-4.0x range on more stable market conditions and Goodyear Forward benefits. However, leverage could remain above 4.0x in 2026 due to challenging operating and market conditions tied to the Iran conflict. Improving Long-Term FCF: Fitch expects Goodyear's near-term FCF will be pressured as the company implements the Goodyear Forward plan. Beyond 2025, Fitch expects Goodyear's FCF margins to run in the low-single-digit range once the Goodyear Forward benefits have been fully achieved and market conditions stabilize. Peer Analysis Goodyear has a relatively strong competitive position as the third-largest global tire manufacturer, with highly recognized brands and a focus on higher-margin, large-rim diameter premium tires. The company's geographic diversification continues to grow, particularly in the Asia-Pacific region, as rising incomes in emerging markets lead to increased demand for premium tires. With about 75% of the company's tire volume going into the global replacement tire market, Goodyear's unit sales are somewhat insulated from economic volatility. This is like other large global tire manufacturers, such as Compagnie Generale des Etablissements Michelin (A/Stable), Continental AG (BBB/Positive) and Pirelli & C. S.p.A. (BBB/Stable), or vehicle aftermarket suppliers such as Clarios International Inc. (B/Stable). Goodyear's margins have recently been lower than those of the other Fitch-rated tire manufacturers, Michelin, Continental and Pirelli, and Goodyear's EBITDA leverage is higher, particularly when compared with Michelin and Continental, whose EBITDA leverage tends to run in the low-1.0x range. Goodyear's EBITDA margins are in line with 'BB' category auto-related issuers, but FCF margins can be affected by seasonal working capital swings that lead to more variability in FCF over the course of a typical year. Goodyear's FCF margins are also highly sensitive to raw material costs and capex. Fitch’s Key Rating-Case Assumptions - Organic revenue growth over the next several years is primarily driven by flat to low-single-digit tire demand growth, positive pricing and favorable mix; - Goodyear Forward results in EBITDA margins sustained in the low-teens level over the intermediate term; - FCF is pressured in the near term by cash costs to implement remaining Goodyear Forward benefits, tariffs and effects of the Iran conflict. Over the longer term, FCF margins run in the low-single-digit range; - Capex as a percentage of revenue runs in the 6.5%-7.0% range as the company invests in modernizing its plants as part of Goodyear Forward; - The company maintains a solid liquidity position, including cash and credit facility availability; - Other than debt that is repaid as part of the Goodyear Forward plan, most debt is assumed to be refinanced prior to maturity at rates based on a SOFR curve of 3.64% in 2026 and 3.71% in 2027. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its CRT to produce the SCP: - Business and financial profile factors (assessment, relative importance): Management (bb+, Lower), Sector Characteristics (bbb-, Moderate), Market and Competitive Positioning (bbb, Higher), Diversification and Asset Quality (bbb+, Moderate), Company Operational Characteristics (bb+, Moderate), Profitability (bb-, Higher), Financial Structure (b, Higher), and Financial Flexibility (bb+, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the historical year 2024, 20% for the forecast year 2025, 20% for the forecast year 2026, 20% for the forecast year 2027 and 20% for the forecast year 2028. - The Governance Impact assessment of 'Good' results in no adjustment. - The Operating Environment Impact assessment of 'a' results in no adjustment. - The SCP is 'bb-'. To derive the IDR: - Application of Fitch's "Parent and Subsidiary Linkage Rating Criteria" results in a consolidated approach. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Clear evidence that the Goodyear Forward plan will not result in the expected improvements in profitability and leverage; - A significant step-down in demand for the company's tires without a commensurate decrease in costs or an unexpected increase in costs, particularly related to raw materials, that cannot be offset with higher pricing; - A decline in the company's consolidated cash below $700 million for several quarters; - Sustained break-even FCF margin; - Sustained gross EBITDA leverage above 4.0x. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Growth in tire unit volumes, market share and pricing; - Sustained FCF margins of 1.5%; - Sustained gross EBITDA leverage below 3.0x. Liquidity and Debt Structure As of March 31, 2026, Goodyear had $723 million of cash and cash equivalents, excluding Fitch's adjustments for not readily available cash, and $3.0 billion available on its various global credit facilities, including $2.2 billion available on its primary U.S. and European revolvers. Once it addresses the 2027 note maturities, Goodyear's next significant maturities are in 2028. As of March 31, 2026, Goodyear had $3.9 billion of senior unsecured notes outstanding. It also had $530 million of ABL borrowings outstanding and various borrowings at certain non-U.S. operations, including credit facilities in Mexico and China. In addition to Goodyear's on-balance sheet debt, Fitch treated $833 million of off-balance sheet factoring as debt at March 31, 2026. Goodyear Europe B.V.'s debt structure at March 31, 2026, included $460 million of senior unsecured notes, $403 million of revolver borrowings and $173 million of on-balance sheet accounts receivable securitization borrowings. Issuer Profile Goodyear is the third-largest global tire manufacturer. The company manufactures tires for passenger, commercial and off-highway vehicles, as well as aircraft. In addition to tires, Goodyear manufactures rubber-related chemicals and operates tire retail and service outlets. Date of Relevant Committee February 11, 2026 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 Goodyear. 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 ----------- ------ -------- Goodyear Tire & Rubber Company (The) senior unsecured LT BB- New Rating RR4 USD bond/note LT BB- New Rating RR4 GREEN TREE: Court Extends Cash Collateral Access to July 7 ---------------------------------------------------------- Green Tree, LLC received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to use cash collateral. The court issued a sixth interim order authorizing the Debtor to use cash collateral through July 7, subject to its budget and an aggregate variance of up to 10% per line item, unless otherwise agreed by the lien claimants. The secured creditors with liens on the cash collateral include the U.S. Small Business Administration, The Huntington National Bank, Square Financial Services, Inc., and any other unknown lien claimants. As adequate protection, the court granted these lien claimants post-petition replacement liens. These replacement liens attach to the Debtor's post-petition cash collateral and other property of the same or substantially equivalent type as the lien claimants' pre-bankruptcy collateral, and they retain the same relative priority held before bankruptcy. The order preserves all contractual and legal rights of both the Debtor and the secured creditors. A further hearing is scheduled for July 6. The order is available at https://shorturl.at/G1G1C from PacerMonitor.com. About Green Tree LLC Green Tree, LLC, doing business as X-Golf Glenview and X-Golf South Loop, operates indoor golf entertainment venues offering simulator-based golf play, instruction, leagues, and private events, serving customers in Glenview, Illinois, and Chicago, Illinois, and operates within the amusement and recreation services industry. Green Tree filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-19313) on December 17, 2025, with $1 million to $10 million in assets and liabilities. James Joeng, member, signed the petition. Judge Michael B. Slade presides over the case. Gregory K. Stern, Esq., at Gregory K. Stern, P.C. represents the Debtor as legal counsel. HAINES PROPERTIES: Hires Brooks Gelpi Haase LLC as Counsel ---------------------------------------------------------- Haines Properties LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to employ Brooks Gelpi Haase, L.L.C. as counsel. The firm will provide these services: a. advise and consult with applicant concerning questions arising in the conduct of the administration of the estate, concerning applicant's rights and remedies with regard to the estate's assets and the claims of secured, priority and unsecured creditors and other parties in interest; b. assist in the preparation of such pleadings, motions, notices and orders as are required for the orderly administration of this case; c. negotiating and preparing on the applicant's behalf a plan of reorganization, disclosure statement, and all related agreements and/or documents, and taking any necessary action on behalf of the Debtor to obtain confirmation of such plan; d. appear for, prosecute, defend and represent applicant's interests in suits and proceedings arising in or related to this case; e. investigate and prosecute preference and other actions arising under the Debtor in Possession's avoiding powers; f. consult with and advise applicant in connection with the operation of its business. The firm will be paid at these rates: Attorneys $350 per hour Associate $185 per hour Paralegals $85 per hour The firm received a retainer in the amount of $12,000, from which a total of $2,963 (including the $1,738 chapter 11 filing fee) in expenses through May 26, 2026 was applied, leaving a retainer balance of $9,037. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Leo D. Congeni, 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: Leo D. Congeni, Esq. Brooks Gelpi Haase, L.L.C. 909 Poydras Street, Suite 2325 New Orleans, Louisiana 70112 Telephone: (504) 224-6723 Tel: (504) 522-4848 Fax: (504) 534-3170 Email: lcongeni@brooksgelpi.com About Haines Properties LLC Haines Properties LLC, a Morgan City, LA-based lessor of nonresidential buildings. Haines Properties LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D., LA. Case No. 26-11268) on May 26, 2026. In its petition, the Debtor reports estimated assets between $1 million to $10 million and estimated liabilities between $1 million to $10 million. Honorable Bankruptcy Judge Meredith S Grabill handles the case. The Debtor is represented by Leo D. Congeni, Esq. of BROOKS GELPI HAASE, LLC. HERNAN REYES: Court Extends Cash Collateral Access to June 16 ------------------------------------------------------------- Hernan Reyes M.D. S.C. received another extension from the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, to use the cash collateral of Kapitus Servicing, Inc. The court order extended the Debtor's authority to use cash collateral from June 2 to June 16 and authorized the Debtor to use up to $8,120.74 in cash collateral solely to pay payroll and payroll-related expenses in accordance with an approved budget, subject to available funds. The Debtor is prohibited from using Kapitus' pre-petition collateral during the interim period. As adequate protection, the Debtor must continue its monthly payments of $5,500 to Kapitus until a Chapter 11 plan is confirmed. Payments must be made through ACH transfer, and the creditor is authorized to debit the Debtor's designated bank account. If an ACH payment is rejected, the Debtor must pay a $75 fee for each failed transaction. In addition, Kapitus will be granted replacement liens on all post-petition assets with the same priority and validity as its pre-bankruptcy liens, along with an administrative expense priority claim to protect against any decline in collateral value resulting from the use of cash collateral. The order further required the Debtor to maintain insurance coverage, preserve collateral, and avoid transferring or disposing of assets outside the ordinary course of business without court approval. The order is available at https://shorturl.at/nLGqC The next hearing is set for June 16. About Hernan Reyes M.D. S.C. Hernan Reyes M.D. S.C. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 25-19154) on December 15, 2025, with $500,001 to $1 million in assets and $100,001 to $500,000 in liabilities. Judge Jacqueline P. Cox presides over the case. Alexander Tynkov, Esq., at Zalutsky & Pinski, Ltd. represents the Debtor as legal counsel. HIGHPEAK ENERGY: Fitch Alters Outlook on 'B' IDR to Negative ------------------------------------------------------------ Fitch Ratings has affirmed HighPeak Energy's (HPK) Long-Term Issuer Default Rating (IDR) at 'B' and its revolving credit facility at 'BB' with a Recovery Rating of 'RR1'. Fitch has downgraded HPK's term loan facility to 'B+'/'RR3' from 'BB-'/'RR2'. The Rating Outlook has been revised to Negative from Stable. The downgrade reflects a reduction in the expected recovery of the term loan in a bankruptcy scenario. The Negative Outlook reflects Fitch's expectation that refinancing may become more difficult in the next two years if the company is unable to implement its deleveraging priorities. Recent needs for covenant relief at oil prices closer to Fitch's midcycle WTI assumption of $57/bbl indicate limited covenant headroom. The disruption in world oil markets provides HighPeak with the opportunity to capture a premium WTI price on spot unhedged volumes and apply proceeds toward term loan reduction. Fitch believes a demonstrated track record of deleveraging would substantially improve HPK's credit quality and refinancing prospects. Key Rating Drivers New Allocation Strategy: Fitch views the dividend reduction and curtailed capital expenditure program as credit positive because both measures redirect cash flow toward mandatory and voluntary term loan prepayments. The revised program contemplates an average of one rig and one frac crew, a significant reduction from the up to four-rig programs previously operated during the company's growth phase. It should allow HPK to improve interest cost per barrel which, at approximately $8/BOE, is currently among the highest in Fitch's rated North American high-yield peer group. Under the revised drilling cadence, Fitch assumes production of approximately 42 Mboe/d, below prior estimates of approximately 47 Mboe/d. Upcoming Maturity Profile: While HPK does not have maturities until 2028, a reversal in energy prices could put pressure on the company's liquidity and potentially disrupt plans to materially reduce debt. Should this happen, lenders may be less willing to refinance at favorable terms. HPK is projected to have full availability of the $100 million super priority senior secured credit facility. Fitch believes HPK will maintain adequate liquidity going forward due to its expectation for positive FCF (about 150 million for 2026E) and the current approximately $100 million cash balance as of Q126. Fitch does not assume any proceeds from HPK's at-the-money share issuance program in the forecast, although this could be a potential source of extra capital. Covenant Risk: Fitch views current oil price volatility as a heightened source of covenant risk for HPK. The company received temporary covenant relief, resetting asset coverage and net leverage thresholds to 1.0x and 2.5x, respectively. HPK's PDP PV10 valuation of approximately $1.3 billion as of year-end 2025 implies a narrow buffer against the asset coverage ratio covenant assuming $1.2 billion of debt. While Fitch expects the company to maintain covenant compliance given its deleveraging capacity and the prospect of higher reserve valuations in the near term at current prices, headroom could be tight. Fitch would view consistent need for covenant relief negatively. Small but Increased Size: The rating reflects the company's small but increased production size concentrated in the Northern Midland basin. HPK's asset base (approximately 142,000 net acres) includes two large contiguous blocks in Flat Top and Signal Peak, with the opportunity for more than 12,000-foot laterals. The company's recent oil cut is around 68%, which Fitch assumes will remain at similar levels in the future. Management has identified about 2,700 total locations and approximately 96 mmboe proved developed reserves as of YE25. Fitch believes HPK's acreage is less de-risked than other companies, and well results could vary across the region. Positive FCF: Fitch projects HPK could generate positive FCF of about $150 million this year at Fitch's price assumptions under the lower capex program at production costs around $15/boe. Management may keep a one rig program through 2026 and possibly through 2027, though higher-for-longer prices may incentivize increased activity once the debt load is reduced. The short-term nature of the company's rig contracts means management could scale back its rig count to preserve liquidity in a weakened oil price environment. The company continues to evaluate its strategic alternatives to maximize shareholder value, including a potential sale. Larger Hedge Book: Fitch believes HPK's current hedging coverage reduces some of the company's downside risks from weakened commodity prices. Longer-term minimum hedging requirement is of 50% of forecast proved developed producing of crude oil and gas production for 18 months, but recent requirements have had the company hedge not less than 75%. HPK hedged production when prices were lower, meaning the bulk of crude volumes are hedged around $65, but the rest of spot volumes will benefit from higher prices. Sub-2.0x Leverage Profile: Fitch forecasts HPK's leverage increasing toward 2.0x in the outer years of the rating horizon as base case price assumptions decline to midcycle levels. Management has stated its priorities are balance sheet protection and conservative financial policy, reinforced by equity contributions and minimal shareholder returns to date. Fitch expects further deleveraging over time as the production profile stabilizes and as FCF is used to reduce gross debt in the near term. Peer Analysis HPK is a relatively small, growth-oriented operator with average daily production of approximately 45 mboepd in 1Q26, which is smaller than its Permian peers Moss Creek Resources Holdings, Inc. (B/Stable), Matador Resources Company (BB/Stable; 208 mboepd in 1Q26) and Crescent Energy Company (BB-/Positive; 341 mboepd in 1Q26). In terms of cost structure at FY25, HPK's Fitch-calculated unhedged cash netback of $25.3 per barrel of oil equivalent (boe; 52% margin) is competitive with its peers Moss Creek, Matador ($28.5/boe; 66% margin) and Crescent Energy ($16.2/boe; 45% margin). HPK incurs higher interest expense per barrel compared to its peers and the company's forecast leverage is higher than its peers. Fitch’s Key Rating-Case Assumptions - WTI oil price of $80/bbl in 2026, $60/bbl in 2027 and $57/bbl thereafter; - Henry Hub natural gas price of $3.50/mcf in 2026, $3.25/mcf in 2027, $3.00/mcf in 2028 and $2.75/mcf thereafter; - 2026 production around 41mboe/d, remaining flat over the forecast; - Annual capex spending closer to maintenance levels at $280 million a year; - Term loan refinanced in 2028 alongside a revolver extension at around the same interest rate structure. 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, Lower), sector characteristics (bb-, Moderate), market and competitive positioning (b, Higher), diversification and asset quality (b+, Moderate), company operational characteristics (b-, Higher), profitability (b+, Moderate), financial structure (a, Lower), and financial flexibility (b, Higher). - 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' has no impact. - The Operating Environment assessment of 'aa-' has no impact. - The SCP is 'b'. To derive the Long-Term IDR: - Fitch made no adjustments to the SCP, resulting in an IDR of 'B'. Recovery Analysis Key Recovery Rating Assumptions The recovery analysis assumes that HPK Energy would be reorganized as a going concern (GC) in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim. GC Approach Fitch assumed a bankruptcy scenario exit EBITDA of $310 million. This GC EBITDA reflects Fitch's projections under a stressed case price deck with a prolonged commodity price downturn. The GC EBTIDA has been lowered from $400 million to account for better visibility on the company's long-term economics, production levels and lower oil production, which indicate a lower valuation. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise value (EV), which reflects the decline from current pricing levels to stressed levels and then a partial recovery coming out of a troughed pricing environment. Fitch believes that a lower-for-longer price environment, causing liquidity constraints and inability to access capital markets to refinance debt, could pose a plausible bankruptcy scenario for HPK. An EV multiple of 3.0x EBITDA is applied to the GC EBITDA to calculate a post-reorganization EV. The choice of this multiple considered the following factors: - The historical bankruptcy case study exit multiples for peer companies ranged from 2.8x to 7.0x, with an average of 5.2x and a median of 5.4x; - The lower multiple takes into consideration HPK's oil-weighted Midland Permian asset base, which has increased risk since it is less developed. Liquidation Approach - The liquidation estimate reflects Fitch's view of the value of balance sheet assets that can be realized in sale or liquidation processes conducted during a bankruptcy or insolvency proceeding and distributed to creditors; - Fitch considers valuations such as SEC PV-10 and M&A transactions for each basin, including multiples for production per flowing barrel, proved reserves valuation, value per acre and value per drilling location. Waterfall Analysis - The revolver is assumed to be 100% drawn upon default. The senior secured super priority revolving facility is senior to the senior secured term loan in the waterfall; - The allocation of value in the liability waterfall results in recovery corresponding to 'RR1' for the senior secured super priority revolving facility ($100 million) and 'RR3' for the senior secured term loan ($1,200 million), which is consistent with Fitch's "Notching and Recovery Rating Criteria." RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to make meaningful progress on refinancing in the next six to 12 months; - Material reduction in liquidity and/or negative FCF, which limits the ability to repay gross debt; - Failure to maintain production, resulting in production sustained below 35 mboepd; - Mid-cycle EBITDA leverage sustained above 3.0x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Consistent track record of reserve replacement and total production sustained above 70 mboepd; - Continued positive FCF generation allocated to gross debt reduction; - Mid-cycle EBITDA leverage sustained below 2.5x. Liquidity and Debt Structure As at 1Q26, HPK's liquidity consisted of approximately $100 million of cash on its balance sheet and close to full availability under its $100 million super priority revolving facility. The company is compliant with debt covenants as of the first quarter and therefore has access to the revolving credit facility. The company will be required to meet its standard covenant tests in 2Q26, which will be more stringent. Issuer Profile HPK is an independent energy exploration and production company operating primarily in Howard and Borden Counties in the Northern Midland Basin of the Permian in West Texas. 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 Climate.VS for HPK is 54 for 2035. This is slightly higher than that of its oil and gas sector peers. Key transition risks arise from a potential reduction in demand, driven by policies designed to reduce the use of oil in the global economy, and in the shorter term from policies designed to limit the greenhouse gas emissions from the production of oil and gas. Like many smaller oil exploration and production companies, HPK has not set any Scope 1, 2 or 3 greenhouse gas emission reduction targets. The company aims to minimize the environmental impact of its operations and is committed to complying with all applicable environmental laws. HPK's expectation for mostly positive FCF allow some flexibility to deal with changes in demand and/or regulation. All of HPK's key assets are located in the U.S. where local regulations will be an important determinant of risk. These risks do not currently have a material influence on the rating given the very long-term time scale over which the transition may take place, uncertainty regarding the extent and nature of changes, and markets' and companies' reaction to them. ESG Considerations HighPeak Energy Inc. has an ESG Relevance Score of '4' for Energy Management due to the company's cost competitiveness and financial and operational flexibility due to scale, business mix, and diversification. This factor has a negative impact on the credit profile and is relevant to the rating in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- HighPeak Energy, Inc. LT IDR B Affirmed B senior secured LT B+ Downgrade RR3 BB- super senior LT BB Affirmed RR1 BB HUBBARD INGREDIENTS: Hires Sader Law Firm LLC as Attorney --------------------------------------------------------- Hubbard Ingredients, LLC seeks approval from the U.S. Bankruptcy Court for the District of Kansas to employ Sader Law Firm, LLC as attorney. The firm's services include: a. advising the Debtor with respect to its rights and obligations as Debtor-In-Possession and regarding other matters of bankruptcy law; b. preparing and filing of any petition, schedules, motions, statement of affairs, plan of reorganization, or other pleadings and documents that may be required in this proceeding; c. representing the Debtor at the meeting of creditors, disclosure statement, confirmation and related hearings; d. representing the Debtor in adversary proceedings and other contested bankruptcy matters; and e. representing the Debtor in matters arising in connection with the reorganization proceeding and business operations. The firm will be paid at these rates: Neil S. Sader $525 per hour Bradley D. McCormack $495 per hour Paralegal $155 per hour The firm received a retainer in the amount of $150,000. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Neil S. Sader, 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: Neil S. Sader, Esq. The Sader Law Firm 2345 Grand Boulevard, Suite 2150 Kansas City, MO 64108 Telephone: (816) 561-1818 Facsimile: (816) 595-1802 Email: nsader@saderlawfirm.com About Hubbard Ingredients, LLC Hubbard Ingredients, LLC is a food ingredients and agricultural products company engaged in the sourcing, processing, and distribution of ingredients for commercial customers. Hubbard Ingredients, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-20802) on May 27, 2026. In its petition, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $10 million and $50 million. Honorable Chief Bankruptcy Judge Dale L. Somers handles the case. The Debtor is represented by Bradley D. McCormack, Esq., of The Sader Law Firm. INFINITE GLOW: Gets Final OK to Use Cash Collateral --------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California, San Jose Division, entered a final order approving Infinite Glow, LLC's third supplement to its motion to use cash collateral. The court authorized the Debtor to use cash collateral under an approved budget from May 9 through the earlier of November 1, the effective date of a Chapter 11 plan, or conversion or dismissal of the Debtor's bankruptcy case. The order provides the Debtor with flexibility in operating expenses. The Debtor may exceed budgeted amounts by up to 20% in categories with projected weekly spending below $1,000 and by up to 15% in categories with projected weekly spending of $1,000 or more without notifying secured creditors. Unused budgeted expenses may be carried forward from week to week, and up to 75% of revenue exceeding projections may be allocated toward cost of goods sold and advertising or marketing expenses. As adequate protection for secured creditor JPMorgan Chase Bank, N.A., the court granted the bank a replacement lien on post-petition collateral to the same extent, validity, and priority as its prepetition lien. The order also requires Infinite Glow to continue making monthly adequate protection payments of $14,841.16, due no later than the first business day of each month, with the payment amount to be adjusted beginning July 1, 2026, in accordance with the loan's interest-rate provisions. The order does not prevent any party in interest from challenging the validity, amount, extent, or nature of JPMorgan's asserted lien. In addition, JPMorgan retains all rights to object to future cash collateral requests, seek relief from the automatic stay, or pursue conversion, dismissal, or other remedies during the chapter 11 proceedings. JPMorgan is represented by: Mia S. Blackler, Esq. Lubin Olson & Niewiadomski, LLP The Transamerica Pyramid 600 Montgomery Street, 14th Floor San Francisco, CA 94111 Telephone: (415) 981-0550 Facsimile: (415) 981-4343 mblackler@lubinolson.com About Infinite Glow LLC Infinite Glow, LLC has an equitable interest in the property situated at 2912 14th Ave., Oakland, Calif., which is valued at $4.7 million. Infinite Glow filed Chapter 11 petition (Bankr. N.D. Calif. Case No. 25-50253) on February 27, 2025, listing between $1 million and $10 million in both assets and liabilities. Judge Stephen L. Johnson handles the case. The Debtor is represented by: Steven Robert Fox, Esq. Law Offices of Steven R. Fox Tel: 818-774-3545 Email: emails@foxlaw.com INOTIV INC: Davis Polk and Haynes Represent 1L Ad Hoc Group ----------------------------------------------------------- In the Chapter 11 bankruptcy cases of Inotiv, Inc. and its debtor-affiliates, Davis Polk & Wardwell LLP and Haynes and Boone, LLP filed with the United States Bankruptcy Court for the Southern District of Texas, Houston Division, a Joint Verified Statement pursuant to Bankruptcy Rule 2019 to inform the Court that both firms represent the First Lien Ad Hoc Group. According to the Verified Statement: 1. In May 2026, the First Lien Ad Hoc Group engaged Counsel to represent it in connection with the Members' holdings of prepetition claims and these Chapter 11 Cases. 2. Counsel represents only the First Lien Ad Hoc Group and does not represent or purport to represent any entities other than the First Lien Ad Hoc Group in connection with the Chapter 11 Cases. In addition, the First Lien Ad Hoc Group does not claim or purport to represent any other entity and undertakes no duties or obligations to any entity. 3. The Members, collectively, beneficially own or manage approximately $296,721,069.93 in aggregate principal amount of the Prepetition Term Loans and $25,975,000 in aggregate principal amount of the Prepetition Unsecured Convertible Notes. 4. Upon information and belief formed after due inquiry, Counsel does not hold any claim against, or interests in, the Debtors or their estates, other than claims for fees and expenses incurred in representing the First Lien Ad Hoc Group. 5. Counsel submits this Statement out of an abundance of caution, and nothing should be construed as an admission that: -- the requirements of Bankruptcy Rule 2019 apply to Counsel's representation of the First Lien Ad Hoc Group or -- the First Lien Ad Hoc Group constitutes a "group" including any group acting for the purpose of acquiring, holding, or disposing of securities under the Securities Exchange Act of 1934, as amended, or any successor provision. 6. Nothing contained in this Statement is or should be construed as a. a waiver or release of any claims against the Debtors by any Member, b. an admission with respect to any fact or legal theory, or c. a limitation upon, or waiver of, any Member's right to file or amend a proof of claim in accordance with applicable law and any orders entered in the Chapter 11 Cases establishing procedures for filing proofs of claim or interests. 7. Counsel reserves the right to amend or supplement this Statement. 8. The information contained herein is intended only to comply with Bankruptcy Rule 2019 and is not intended for any other use or purpose. 9. The information outlined is based upon information provided by the Members to Counsel and is subject to change. The name, address, nature, and amount of all disclosable economic interests of each Member, are: 1. Certain funds and/or accounts, or subsidiaries of such funds and/or accounts, managed, advised or controlled by CION INVESTMENT CORP, or a subsidiary or an affiliate thereof 100 Park Ave, 25th Floor New York, NY 10017 Nature and Amount of Disclosable Economic Interest $24,014,674.95 in aggregate principal amount of Prepetition Term Loans 2. Certain funds and/or accounts, or subsidiaries of such funds and/or accounts, managed, advised or controlled by CROSSINGBRIDGE ADVISORS, LLC or a subsidiary or an affiliate thereof 427 Bedford Road, Suite 220 Pleasantville, NY 10570 Nature and Amount of Disclosable Economic Interest $18,307,980.79 in aggregate principal amount of Prepetition Term Loans 3. Certain funds and/or accounts, or subsidiaries of such funds and/or accounts, managed, advised or controlled by HIGHBRIDGE CAPITAL MANAGEMENT, LLC or a subsidiary or an affiliate thereof 390 Madison Ave, 28th Floor, New York, NY 10017 Nature and Amount of Disclosable Economic Interest $132,266,863.86 in aggregate principal amount of Prepetition Term Loans $25,975,000 in aggregate principal amount of Prepetition Unsecured Convertible Notes 4. Certain funds and/or accounts, or subsidiaries of such funds and/or accounts, managed, advised or controlled by PHILOSOPHY CAPITAL MANAGEMENT, LLC or a subsidiary or an affiliate thereof 3201 Danville Boulevard, Suite 100 Alamo, CA 94507 5. Nature and Amount of Disclosable Economic Interest $8,977,033.45 in aggregate principal amount of Prepetition Term Loans 5. Certain funds and/or accounts, or subsidiaries of such funds and/or accounts, managed, advised or controlled by REDWOOD CAPITAL MANAGEMENT, LLC or a subsidiary or an affiliate thereof 250 W 55th Street, 26th Floor New York, NY 10019 Nature and Amount of Disclosable Economic Interest $29,558,107.90 in aggregate principal amount of Prepetition Term Loans 6. Certain funds and/or accounts, or subsidiaries of such funds and/or accounts, managed, advised or controlled by SILVER POINT FINANCE, LLC or a subsidiary or an affiliate thereof 2 Greenwich Plaza, Suite 1, Greenwich, CT 06830 Nature and Amount of Disclosable Economic Interest $83,596,408.98 in aggregate principal amount of Prepetition Term Loans Co-Counsel for the First Lien Ad Hoc Group: Charles A. Beckham, Jr., Esq. Kelli S. Norfleet, Esq. Arsalan Muhammad, Esq. David A. Trausch, Esq. HAYNES AND BOONE, LLP 1221 McKinney Street, Suite 4000 Houston, TX 77010 Tel: (713) 547-2000 Email: charles.beckham@haynesboone.com kelli.norfleet@haynesboone.com arsalan.muhammad@haynesboone.com david.trausch@haynesboone.com - and - Damian Schaible, Esq. Jonah A. Peppiatt, Esq. Amber Leary, Esq. Moshe Melcer, Esq. DAVIS POLK & WARDWELL LLP 450 Lexington Avenue New York, NY 10017 Tel: (212) 450-4000 Email: damian.schaible@davispolk.com jonah.peppiatt@davispolk.com amber.leary@davispolk.com moshe.melcer@davispolk.com About Inotiv, Inc Inotiv, Inc. is a contract research organization dedicated to providing nonclinical and analytical drug discovery and development services primarily to the pharmaceutical and medical device industries and selling a range of research-quality animals and diets to the same industries as well as academia and government clients. The Company's products and services focus on bringing new drugs and medical devices through the discovery and preclinical phases of development and, in certain cases, the clinical phases of development, all while focusing on increasing efficiency, improving data, and reducing the cost of discovering and taking new drugs and medical devices to market. Indianapolis, Indiana-based Ernst & Young LLP, the Company's auditor since 2021, expressed substantial doubt regarding the Company's ability to continue as a going concern. In its "going concern" qualification dated December 5, 2025, included in the Company's Annual Report on Form 10-K for the year ended September 30, 2025, Ernst & Young reported that the Company has negative operating cash flows, operating losses and net losses, is forecasting non-compliance with certain covenants under its loan agreements, and has significant debt obligations due within the next 12 months. West Lafayette, Indiana-based Inotiv, Inc. and several affiliates filed for Chapter 11 bankruptcy (Bankr. S.D. Texas Lead Case No. 26-bk-90601) on June 3, 2026. The Hon. Christopher M Lopez presides over the case. In their petitions, the Debtors listed $500 million to $1 billion in estimated assets and liabilities. As of Dec. 31, 2025, Inotiv reported $734.3 million in total assets, $625.3 million in total liabilities, and $109 million in total equity. The Debtors hired Ropes & Gray LLP as general bankruptcy counsel; Hunton Andrews Kurth LLP, as co-bankruptcy counsel; Perella Weinberg Partners, as investment banker; FTI Consulting, Inc., as financial advisor; and Kroll Restructuring Administration LLC, as notice, claims, solicitation and balloting agent. Acquiom Agency Services LLC, serves as administrative agent and collateral agent for a syndicate of lenders providing DIP financing. Davis Polk & Wardwell LLP and Haynes and Boone, LLP represent the First Lien Ad Hoc Group. IQVIA INC: Moody's Rates New Senior Unsecured Notes 'Ba2' --------------------------------------------------------- Moody's Ratings assigned a Ba2 rating to the proposed senior unsecured notes of IQVIA Inc. ("IQVIA"). There are no changes to IQVIA's existing ratings, including the Ba1 corporate family rating, Ba1-PD probability of default rating, Baa3 senior secured credit facility rating, and SGL-1 Speculative Grade Liquidity Rating. The outlook remains stable. IQVIA will use the net proceeds from EUR950 million notes offering to repay existing borrowings and pay fees and expenses related to the transaction. RATINGS RATIONALE IQVIA's Ba1 Corporate Family Rating reflects the company's considerable size, scale, and strong market position as both a pharmaceutical contract research organization (CRO) and pharmaceutical data and analytics provider. The rating is also supported by the company's strong operating cash flow and very good liquidity. Market dynamics within IQVIA's CRO and data providing businesses are stable which in Moody's views will be contributing to relatively low earnings volatility and predictable free cash flow over the next few years. Despite Moody's expectations that IQVIA will generate healthy earnings over the intermediate-term, Moody's believes debt/EBITDA will generally be maintained between 3.5 times and 4.5 times. IQVIA's rating is constrained by its moderately aggressive financial policies as Moody's expects that free cash flow will continue to be prioritized for share repurchases and acquisitions. The stable rating outlook reflects Moody's expectations that IQVIA will grow earnings in the mid-single digits over the next 12 to 18 months and that debt/EBITDA will generally be maintained between 3.5 to 4.5 times. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The rating could be upgraded if IQVIA can deliver revenue growth and maintain profitability such that adjusted debt to EBITDA is sustained below 3.5 times. Additionally, the company would need to maintain a conservative financial policy, including a public commitment to a financial leverage consistent with an investment grade rating, to consider an upgrade. The rating could be downgraded if IQVIA's operating performance weakens significantly or if the company executes material debt-funded acquisition and/or share repurchases that result in debt to EBITDA sustained above 4.5 times. The principal methodology used in this rating was Business and Consumer Services published in February 2026. IQVIA, headquartered in Durham, North Carolina, is a leading global provider of outsourced contract research and contract sales services to pharmaceutical, biotechnology and medical device companies. The company is also a leading provider of sales and other market intelligence primarily to the pharmaceutical and biotech industries. Reported revenues for the fiscal year 2025 were approximately $16.3 billion. J KRUZE INVESTMENTS: Gets Final OK to Use Cash Collateral --------------------------------------------------------- J Kruse Investments, LLC, received final approval from the U.S. Bankruptcy Court for the Western District of Missouri to use cash collateral to fund operations. The Debtor was initially allowed to access cash collateral under the court's May 26 interim order. Under the final order, the Debtor is authorized to continue using cash collateral based on an approved operating budget. This authority will terminate upon a default under the final order, conversion or dismissal of the Debtor's Chapter 11 case, appointment of a trustee or expanded examiner, or cessation of business operations, unless extended by court order or the bank's consent. Simmons Bank holds a security interest in the Debtor's cash collateral. As of the petition date, Simmons Bank asserted claims totaling more than $358,000. As adequate protection, the Debtor must make monthly payments of $2,900 to Simmons Bank beginning this month. In addition, the bank retains its existing liens on cash collateral. The final order is available at http://bankrupt.com/misc/JKruseInvestments_FCCOrder.pdf Simmons Bank, as secured creditor, is represented by: Frank J. Schmidt, Esq. Schmidt Basch, LLC 1034 S. Brentwood Blvd., Ste. 1555 St. Louis, MO 63117 (314) 721-9200 (Telephone) (913) 224-1622 (Facsimile) fschmidt@schmidtbasch.com About J Kruse Investments LLC J Kruse Investments, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Mo. Case No. 25-60861) on December 17, 2025, with $50,001 to $100,000 in assets and $500,001 to $1 million in liabilities. Judge Brian T. Fenimore presides over the case. James B. James, Esq., at JB James Law Firm, P.C. represents the Debtor as bankruptcy counsel. JAGUAR HEALTH: Exchanges Series Q Preferred for Common Stock ------------------------------------------------------------ Jaguar Health, Inc. announced in a regulatory filing that it has entered into two privately negotiated exchange agreements with Streeterville Capital, LLC, pursuant to which an aggregate of 7.92 outstanding shares of Series Q Perpetual Preferred Stock were exchanged for an aggregate of 64,668 shares of the Company's common stock, par value $0.0001 per share, with all exchanged preferred shares cancelled and retired upon completion of each transaction. First Exchange Agreement On May 26, 2026, the Company entered into the first exchange agreement with Streeterville, pursuant to which the Company issued 31,958 shares of Common Stock to Streeterville in exchange for an aggregate of 3.72 outstanding shares of Series Q Preferred Stock held by Streeterville. Upon completion of such exchange, the First Exchanged Preferred Shares were cancelled and retired. Second Exchange Agreement On June 1, 2026, the Company entered into a second exchange agreement with Streeterville, pursuant to which the Company issued 32,710 shares of Common Stock to Streeterville in exchange for an aggregate of 4.2 outstanding shares of Series Q Preferred Stock held by Streeterville. Upon completion of such exchange, the Second Exchanged Preferred Shares were cancelled and retired. As previously disclosed, on May 19, 2026, the Company sold and issued to Streeterville an aggregate of 408 shares of Series Q Preferred Stock in two privately negotiated exchange transactions. Both the First Exchange Agreement and the Second Exchange Agreement include representations, warranties, and covenants customary for a transaction of this type. Full text copies of the Exchange Agreements are available at https://tinyurl.com/bdcs66p2 and https://tinyurl.com/4ax2xaap About Jaguar Health Jaguar Health Inc. develops novel proprietary prescription drugs sustainably derived from plants for people with complicated gastrointestinal disease states. Its family companies include Napo Pharmaceuticals Inc., which is developing a highly concentrated lyophilized crofelemer powder for oral solution for intestinal failure, including microvillus inclusion disease and short bowel syndrome with intestinal failure, while Napo Therapeutics S.p.A. is focused on expanding global access to crofelemer and developing therapies for orphan and rare gastrointestinal conditions. In an audit report dated April 7, 2026, RBSM LLP issued a "going concern" qualification, stating that the company has an accumulated deficit, recurring losses, and expects continuing future losses. These conditions raise substantial doubt about the Company's ability to continue as a going concern As of Dec. 31, 2025, the company reported total assets of $38.32 million, total liabilities of $57.01 million, and a total stockholders' deficit of $18.69 million. JJ STUCKEY: Gets Interim OK to Use Cash Collateral -------------------------------------------------- JJ Stuckey & Partners, LLC received second interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to use cash collateral through June 30. Under the second interim order, the Debtor is authorized to use cash collateral according to approved budgets covering the period from June 1 to June 30, subject to a 10% variance per line item. The Huntington National Bank (as successor to TCF Equipment Finance), First Internet Bank of Indiana (as successor to ApplePie Capital), and National Funding, Inc. may claim liens on the Debtor's cash, operating revenues, and receivables, including funds in pre-petition accounts based on UCC filings. The asserted liens may extend to equipment and other assets that could constitute cash collateral, though their validity and scope remain undetermined and are subject to challenge by the Debtor. As protection, the liens held by secured creditors on their collateral extend to the Debtor's post-petition assets. In addition, the order requires the Debtor to remain current on all post-petition tax obligations and prohibits dispositions of assets outside the ordinary course of business without lender consent and court approval. The order is available at https://shorturl.at/uvUYg The next hearing is scheduled for June 30. JJ Stuckey & Partners operates two Jimmy John's franchise restaurants in Jacksonville, North Carolina: one on Lejeune Boulevard and another on Western Boulevard. Its revenue is derived entirely from restaurant operations. About JJ Stuckey & Partners LLC JJ Stuckey & Partners, LLC operates two Jimmy John's franchise restaurants in Jacksonville, North Carolina. JJ Stuckey & Partners filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. N.C. Case No. 26-02110) on May 8, 2026, with up to $100,000 in assets and up to $10 million in liabilities. Kathleen O'Malley serves as Subchapter V trustee. Judge Joseph N. Callaway oversees the case. George Mason Oliver, Esq., at The Law Offices of George Oliver, PLLC, represents the Debtor as legal counsel. KALAMAZOO CANDLE: Gets Interim OK to Use Cash Collateral -------------------------------------------------------- Kalamazoo Candle Company, LLC received interim approval from the U.S. Bankruptcy Court for the Western District of Michigan to use its cash collateral to fund ordinary business operations during its Chapter 11 case. Under the interim order, the Debtor is authorized to use cash collateral in accordance with its operating projections, allowing flexibility between budget categories as long as total expenses do not exceed 110% of the projected budget. As a condition of using cash collateral, the Debtor must provide adequate protection to its secured lenders, including Horizon Bank, 1st Source Bank, Northern Great Lakes Initiative, and Fora Financial. Horizon Bank, as the senior secured creditor, will receive monthly adequate protection payments of $2,000. The secured creditors will be granted replacement liens on the Debtor's post-petition personal property, excluding Chapter 5 avoidance actions, while preserving their existing rights and interests in collateral and proceeds. The Debtor must also maintain insurance on collateral, provide financial reports and other requested information to secured creditors, and permit reasonable inspections of collateral during normal business hours. The order remains effective until conversion of the Debtor's Chapter 11 case, appointment of a trustee, entry of a final order, or another terminating event. The Debtor's authority to use cash collateral may be terminated if it defaults on adequate protection obligations, violates the order, ceases business operations, experiences a material decline in collateral value, or if the case is converted or dismissed. A final hearing is scheduled for July 15 before Judge Scott Dales. The order will automatically become final and the hearing will be canceled if no objections are filed by July 10. About Kalamazoo Candle Company, LLC Kalamazoo Candle Company, LLC is a Kalamazoo, Michigan-based candle company founded in 2013. The company handcrafts made-to-order soy candles and sells candle products and related fragrance and accessory items, including classic candles, botanicals, large 2-wick candles, car fresheners, warmers, candle-care products, matchboxes, aroma oils, wax melts, votives, and travel tins. It also produces custom label candles, offers DIY candle-making experiences, and supports wholesale candle ordering. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Mich. Case No. 26-01606) on May 15, 2026. In the petition signed by David Adam McFarlin, member/manager, the Debtor disclosed $148,682 in total assets and $2,115,854 in total liabilities. Judge Scott W. Dales oversees the case. Steven M. Bylenga, Esq., at CBH ATTORNEYS & COUNSELORS, PLLC, represents the Debtor as legal counsel. KINETIC SECURED: Fitch Gives 'BB-(EXP)sf' Rating on Class C Notes ----------------------------------------------------------------- Fitch Ratings expects to rate Kinetic Secured Fiber Network Revenue Term Notes, Series 2026-2 issued by Kinetic ABS Issuer LLC. Entity/Debt Rating ----------- ------ Kinetic Secured Fiber Network Revenue Term Notes, Series 2026-2 A-2 LT A-(EXP)sf Expected Rating B LT BBB-(EXP)sf Expected Rating C LT BB-(EXP)sf Expected Rating Transaction Summary The Kinetic Secured Fiber Network Revenue Term Notes, Series 2026-2, issued by Kinetic ABS Issuer LLC (Kinetic), are a securitization of subscription and contract payments derived from an existing fiber-to-the-premises (FTTP) network infrastructure and second transaction under the master trust. Collateral assets include conduits, cables, network-level equipment, access rights, customer agreements, transaction accounts and a pledge of equity from the asset entities. The notes are serviced by net revenue from the operation of the collateral assets. The collateral network consists of the sponsor's enterprise fiber network, which includes approximately 1,187k passings and 352k subscribers across multiple counties in 10 states (GA, KY, OH, TX, AR, FL, IA, OK, AL and NC). Fitch estimates that the securitized collateral represents approximately 62% of Kinetic's revenues from retail customers generated through fiber networks based on management-provided 2026 data. Fitch expects the transaction to feature an anticipated repayment date (ARD) structure whereby all tranches pay interest only until their seven-year soft-bullet maturities. After the ARD, excess cash flow will amortize principal through the 32-year legal final maturity, with losses borne reverse-sequentially. The transaction incorporates an interest-only payment period framework and a liquidity reserve account. The expected ratings reflect Fitch's analysis of cash flow from the collateral assets, rather than an assessment of the corporate default risk of the ultimate parent, Uniti Group Inc. Fitch also expects to affirm all other existing ratings issued by the master trust at the issuance of 2026-2. KEY RATING DRIVERS Net Cash Flow and Leverage: Fitch's net cash flow (NCF) on the pool is $215.0 million, implying a 13.0% haircut to issuer estimated NCF. The overall debt multiple relative to Fitch's NCF is on the class A, B and C are 6.9x, 8.0x and 9.8x, respectively, vs versus the debt/issuer NCF leverage of 6.0x, 7.0x and 8.5x, respectively. Credit Risk Factors: The major factors impacting Fitch's determination of cash flow and maximum potential leverage (MPL) include: the high quality of the underlying collateral networks, high subscriber retention rates, low geographical concentration, high historical barriers to entry, size and capability of the sponsor. Technology-Dependent Credit: Due to the specialized nature of the collateral and potential for changes in technology to affect long-term demand for digital infrastructure, the senior classes of this transaction do not achieve ratings above 'Asf'. The securities have a rated final payment date 32 years after closing, and the long-term tenor of the securities increases the risk that an alternative technology, rendering obsolete the current transmission of data through fiber optic cables, will be developed. Fiber optic cable networks are currently the fastest and most reliable means to transmit information and data providers continue to invest in and utilize this technology. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Declining cash flow as a result of higher expenses, contract churn, or lower market penetration and the development of an alternative technology for the transmission of wireless signal could lead to downgrades. - Fitch's base case NCF was 13.0% below the issuer's underwritten cash flow. A further 10% decline in Fitch's NCF indicates the following ratings based on Fitch's determination of maximum potential leverage (MPL): class A-2 to 'BBB(EXP)sf' from 'A-(EXP)sf', class B to 'BB(EXP)sf' from 'BBB-(EXP)sf', and class C to 'B(EXP)sf' from 'BB-(EXP)sf'. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A 10% increase in Fitch's NCF indicates the following ratings based on Fitch's determination of MPL: class A-2 to 'A(EXP)sf' from 'A-(EXP)sf', class B to 'A(EXP)sf' from 'BBB-(EXP)sf', and class C to 'BBB-(EXP)sf' from 'BB-(EXP)sf'. - However, upgrades are unlikely given the provision for the issuer to issue additional notes, which would rank pari passu or subordinate to existing notes, without the benefit of additional collateral. In addition, the transaction is capped at the 'Asf' category, given the risk of technological obsolescence. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. 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. KOMAX LLC: Gets Final OK to Use Cash Collateral ----------------------------------------------- Komax, LLC received final approval from the U.S. Bankruptcy Court for the Southern District of West Virginia, Charleston, to use cash collateral. Under the final order, the Debtor is authorized to use cash collateral through July 31 to pay expenses in accordance with its budget. The Debtor must follow the approved budget, and total disbursements cannot exceed the budgeted amounts by more than 15% on an aggregate and cumulative basis. The Debtor identifies numerous creditors asserting interests in the cash collateral through UCC filings, including senior secured lender Laurel Hills Holding Company LLC, which holds a first-priority blanket lien securing approximately $1.95 million in debt, as well as multiple equipment financiers, banks, and alternative lending entities such as CIT Bank, De Lage Landen Financial Services, Konica Minolta, Colony Bank, Trust Capital Funding, Denali (Eliot Ventures), and others. Many of these creditors assert liens on accounts, receivables, inventory proceeds, and general business assets, though the Debtor contends that most are undersecured given the value of the collateral. Laurel Hills is identified as the only fully secured creditor with respect to the cash collateral base while other creditors are alleged to be partially or wholly undersecured. As protection, Laurel Hills will be granted replacement liens on post-petition assets similar to its pre-bankruptcy collateral, with the same validity and priority as its pre-bankruptcy liens. The replacement liens do not apply to causes of action. Laurel Hills is also entitled to allowed administrative expense claim. The order is available at https://shorturl.at/w2Rzx from PacerMonitor.com. About Komax LLC Komax, LLC is an office equipment sales, leasing, and servicing business. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Va. Case No. 2:26-bk-20106) on May 4, 2026. In the petition signed by Robert B. Maxwell, Jr., sole member and manager, the Debtor disclosed up to $10 million in both assets and liabilities. Brandy M. Rapp, Esq., at Whiteford, Taylor & Preston LLP, represents the Debtor as legal counsel. KORN FERRY: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable ------------------------------------------------------------- Moody's Ratings affirmed Korn Ferry's Ba2 corporate family rating, Ba2-PD probability of default rating and Ba3 senior unsecured rating. The speculative grade liquidity rating (SGL) is unchanged at SGL-1. The outlook is maintained at stable. Korn Ferry is a global human resources and organizational consulting firm. RATINGS RATIONALE The affirmation of Korn Ferry's CFR at Ba2 reflects the company's leadership position in the human resources (HR) services business, large scale and Moody's anticipations for balanced financial strategies, featuring moderate financial leverage – with debt/EBITDA under 2x over the next 12 to 18 months – and a very good liquidity profile. Korn Ferry's established brand, diversified offerings, global client network and proprietary IP, featuring a growing line of widely-adopted subscription products, as well as adjacent markets such as temporary executive staffing, and track record provide enduring competitive advantages. All financial metrics cited reflect Moody's standard adjustments. Korn Ferry faces strong competition, which limits profitability and organic growth. The talent acquisition segments have low barriers to entry and easily available online tools, such as LinkedIn (a division of Microsoft Corporation, Aaa stable), enable competition and insourcing by corporate customers. The need to retain and compete for key employees pressures profits margins. In the advisory segment, the company competes against very large global firms with deep pockets. More than half of Korn Ferry's revenue is generated by recruiting services, which are very cyclical and experience sudden drops in demand during economic downturns. Moody's anticipates revenue growth could be limited over the next 12 to 18 months by soft executive recruiting demand, particularly if executive labor market or macroeconomic conditions weaken. Korn Ferry's profitability rates have declined substantially during past macroeconomic downturns. Moody's expects Korn Ferry will continue to pursue adjacent HR capabilities through M&A, and could temporarily increase financial leverage to fund transactions. However, M&A investment activity has been modest since 2022. The high cyclicality of Korn Ferry's core business makes liquidity a key consideration for the rating. Korn Ferry's speculative grade liquidity rating of SGL-1 reflects a very good liquidity profile, featuring almost $1 billion of cash as of January 31, 2026, a largely available unrated $850 million revolver expiring 2030 and ample ability to cut variable costs and preserve cash when cyclical pressure reduces revenue. Moody's expects at least $150 million of annual free cash flow (after dividends) over the next 12 to 15 months. Net of minimal usage to support letters of credit, roughly $845 million of the revolving facility was available as of 31 January 2026. The company typically accrues compensation expenses over the year and pays bonuses in its first fiscal quarter (ends 31 July), which results in negative operating cash flow during the first quarter, offset by positive balances the rest of the fiscal year. Moody's expects that the company will either repay or refinance its $400 million 4.625% senior unsecured notes due December 2027 before they become a current obligation. As of January 31, 2026, the company had a $242 million marketable securities balance, but Moody's do not consider this available liquidity given it is held in a trust to satisfy obligations under Korn Ferry's deferred compensation plans. In addition, Korn Ferry's company owned life insurance plans reflect a net cash surrender value of about $285 million as of January 31, 2026. The senior secured revolving credit facility incorporates a financial covenant requiring that the maximum senior secured consolidated net leverage ratio (as defined in the facility agreement) remain at 3.75x or less. The net leverage covenant includes a $450 million cap on cash netting, of which up to $100 million can be unrestricted foreign cash. Moody's expects Korn Ferry will be well in compliance with its financial covenant over the next 12 to 15 months. The affirmation of the Ba3 senior unsecured notes rating, one notch below the Ba2 CFR, reflects their junior position in the capital structure below the unrated $850 million senior secured credit facility. The stable outlook reflects Moody's expectations for some revenue growth, mid-teens percentage range EBITDA margins, at least $150 million of free cash flow and debt/EBITDA leverage to remain around 2x over the next 12 to 18 months, in the absence of leveraging transactions. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Moody's expects: 1) increased scale and organic revenue growth, evidencing an improved competitive position; 2) reduced exposure to cyclical economic swings; 3) conservative financial policies with debt/EBITDA sustained below 2.5x throughout an economic cycle; and 4) sustained strong liquidity with additional financing flexibility from a lower proportion of secured to total debt. The ratings could be downgraded if Moody's expects: 1) increased competition or sustained cyclical pressure will result in a prolonged period of lower than expected revenue or profitability; 2) debt/EBITDA sustained above 3.5x; 3) liquidity deterioration, as evidenced by diminished balance sheet cash compared to historical levels or the need to draw on the revolver to support operating gaps; or 4) more aggressive financial policies. The principal methodology used in these ratings was Business and Consumer Services published in February 2026. The scorecard-indicated outcome is Baa3, which is two notches above the actual assigned Ba2 CFR. The difference arises largely from a greater emphasis placed upon scale, demand characteristics and financial policy than leverage and coverage in the actual rating. Los Angeles, CA - based Korn Ferry (NYSE:KFY) is a global human resources and organizational consulting firm. The company operates through 5 segments: executive search (31% of fee revenue as of fiscal year 2025), consulting services (24%) professional and interim search (18%) recruitment process outsourcing (13%) and digital (13%); and operates through 105 offices across 53 countries, with over 10,000 full-time employees. Moody's expects revenue of about $3 billion in fiscal 2027 (ends April 30). LENA BRANDS: Hires Pierson Ferdinand LLP as Counsel --------------------------------------------------- Lena Brands LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Pierson Ferdinand LLP as counsel. The firm's services include: a. advising the Debtors with respect to their powers and duties as debtors-in-possession in the continued management and operation of their business and properties; b. advising and consulting on the conduct of these chapter 11 cases, including all of the legal and administrative requirements of operating in chapter 11; c. attending meetings and negotiating with representatives of the Debtors' creditors and other parties in interest; d. taking all necessary actions to protect and preserve the Debtors' estates, including prosecuting actions on the Debtors' behalf, defending any action commenced against the Debtors, and representing the Debtors in negotiations concerning litigation in which the Debtors are involved, including objections to claims filed against the Debtors' estates; e. preparing pleadings in connection with these chapter 11 cases, including motions, applications, answers, orders, reports, and papers necessary or otherwise beneficial to the administration of the Debtors' estates; f. advising the Debtors in connection with a proposed sale of their assets; g. appearing before the Court and any appellate courts to represent the interests of the Debtors' estates; h. advising the Debtors regarding tax matters; i. advising the Debtors regarding insurance and regulatory matters; j. taking any necessary action on behalf of the Debtors to negotiate, prepare, and obtain approval of a disclosure statement and confirmation of a chapter 11 plan and all documents related thereto; and k. performing all other necessary legal services for the Debtors in connection with the prosecution of these chapter 11 cases, including: (i) analyzing the Debtors' leases and contracts and the assumption and assignment or rejection thereof; (ii) analyzing the validity of liens against the Debtors; and (iii) advising the Debtors on corporate and litigation matters. The firm will be paid at these rates: Mette H. Kurth $860 per hour Lynnette Warman $695 per hour Jeff Carbino hourly rate $800 per hour The firm was paid a retainer in the amount of $7,000. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Mr. Carbino 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: Jeffrey M. Carbino 3411 Silverside Road Baynard Building, Suite 104-13 Wilmington, DE 19810 Telephone: (302) 907-9262 Telephone: (302) 485-0604 Email: jeffrey.carbino@pierferd.com About Lena Brands Lena Brands, LLC, doing business as Coco's Bakery, Inc. and Shari's, operates family-style restaurant and bakery brands with roots dating to 1948 for Coco's in Corona Del Mar, California, and 1978 for Shari's in Hermiston, Oregon. The company's restaurant concepts offer American and Northwest comfort food. Its brands support dine-in service and, where available, curbside pickup, delivery, and select outdoor dining ordering options. Lena Brands and affiliated debtors, Lena Holdings, LLC and Lena Real Estate Holdings, LLC, sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 26-10792) on May 15, 2026. In its petition, Lena Brands reported total assets of $1 million to $10 million and total liabilities of $10 million to $50 million. The petition was signed by Samuel Nicholas Borgese as sole member and owner. Judge Thomas M. Horan oversees the cases. The Debtors' counsel is Mette H. Kurth, Esq., at Pierson Ferdinand, LLP. LIQUOR WORLD: Court OKs Continued Use of Cash Collateral -------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of New York entered an interim order allowing Liquor World of Syracuse Inc. to continue using cash collateral. Under the interim order, the Debtor is authorized to continue to use cash collateral through and including June 24. As adequate protection, the court granted PathFinder Bank replacement liens on the debtor's post-petition assets. These "rollover" liens maintain the same relative priority and collateral type as any prepetition liens and are effective as of the bankruptcy filing date without requiring additional filings or recordings. The court emphasized that the order does not determine whether the replacement liens alone adequately protect the bank's claims. The ruling preserves the rights of the secured creditor, the United States Trustee, the debtor, and other parties to challenge lien validity, secured status, collateral value, or to seek additional adequate protection at a later stage of the case. The court scheduled an adjourned interim hearing on the cash collateral motion for June 17. Any objections or responses to further cash collateral relief must be filed by June 15. About Liquor World of Syracuse Inc. Liquor World of Syracuse, based in East Syracuse, New York, operates as a retail liquor store offering a wide selection of wines, spirits, and beers, while featuring staff-curated picks and hosting tastings and events designed to introduce customers to new products. The store serves local residents through in-store purchases and delivery, and its online platform allows customers to browse inventory organized by type, country, and region, check promotions, and manage accounts, combining convenience with a community-focused shopping experience. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 26-30231) on March 27, 2026, with $479,500 in assets and $1,973,714 in liabilities. Kirandeep Nafri, president, signed the petition. Judge Wendy A. Kinsella presides over the case. Robert B. Gleichenhaus, Esq., at Gleichenhaus, Marchese & Weishaar, P.C. represents the Debtor as legal counsel. MERRICK WOODWORKING: Gets Final OK to Use Cash Collateral --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Colorado entered a final order authorizing Merrick Woodworking Inc. to use cash collateral in its Chapter 11 Subchapter V case. Under the order, the Debtor may use cash collateral in accordance with the budget previously filed with the court. The authorization is final and allows the Debtor to continue funding its operations while pursuing reorganization. As adequate protection for any creditor holding a properly perfected security interest in cash collateral, the Debtor must provide replacement liens on post-petition accounts receivable to the extent a creditor's interest is diminished. Additional protections include maintaining adequate insurance on personal property, keeping collateral in good repair, providing creditors with court-filed reports and debtor-in-possession reports, paying all post-petition taxes, and limiting spending variances to no more than 10% per budget line item each month, excluding U.S. Trustee fees. The order also permits the Debtor to renew cash collateral authority at the end of the current budget period by providing a new budget to parties with an interest in cash collateral and allowing an opportunity to object. About Merrick Woodworking Inc. Merrick Woodworking Inc. provides woodworking services, including custom cabinetry, carpentry, millwork, trim, interior and exterior doors, and furniture. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 26-13255) on May 8, 2026, with $264,683 in assets and $1,985,499 in liabilities. Kevin Merrick, president, signed the petition. Aaron A. Garber, Esq. at Wadsworth Garber Warner Conrardy, P.C. represents the Debtor as legal counsel. MII AVIATION: Wins Interim Cash Collateral Access ------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware entered an interim order authorizing MII Aviation Services, LLC and its affiliates to use cash collateral on a limited basis pending a final hearing. The Court authorized the Debtors to use cash collateral solely for limited purposes set forth in the approved budget, including payment of mediation expenses to facilitate negotiations among the Debtors, the Committee, and the lender, payment of directors and officers (D&O) insurance premiums, and certain United States Trustee fees. The Debtors are prohibited from selling, transferring, leasing, encumbering, or otherwise disposing of collateral except as specifically authorized by the order and the approved budget. Any use of cash collateral terminates upon the final hearing date or earlier upon an uncured event of default after five days’ notice from the lender. The cash collateral is claimed by prepetition secured lender Scintilla Fund LP, which asserts that it is owed at least $48.6 million under various prepetition loan agreements and that it holds valid, perfected liens on substantially all of the Debtors' assets. However, the Official Committee of Unsecured Creditors has challenged, or is expected to challenge, the amount, validity, perfection, and priority of the lender's claims and liens. The order expressly preserves all rights of the Committee to pursue such challenges and does not constitute any final determination regarding the lender's secured position. The order became effective immediately and preserves all rights and remedies of the prepetition lender under the loan documents, the Bankruptcy Code, and applicable law. Events of default include failure to comply with the budget, conversion of the cases to chapter 7, appointment of a trustee or examiner with expanded powers, dismissal of the cases, relief from the automatic stay affecting collateral, or a material breach of the order. A final hearing to consider continued use of cash collateral is scheduled for July 8 to 10, with objections due by June 25. A copy of the Debtor's budget is available at https://shorturl.at/1BP6y from PacerMonitor.com. About MII Aviation Services LLC MII Aviation Services, LLC is an aviation services company that provides aircraft maintenance, repair, and related technical support services to commercial and private aviation clients. MII Aviation Services sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-10123) on February 1, 2026. In its petition, the Debtor reported estimated assets between $1 million and $10 million and estimated liabilities ranging from $10 million to $50 million. Honorable Bankruptcy Judge Laurie Selber Silverstein handles the case. The Debtor is represented by Mark L. Desgrosseilliers, Esq., at Chipman Brown Cicero & Cole, LLP. MILAN PINES: M. Shapiro Real Estate Appointed as Receiver --------------------------------------------------------- The Hon. Laurie J. Michelson of the U.S. District Court for the Eastern District of Michigan, Southern Division, entered an agreed order directing the appointment of M. Shapiro Real Estate Group as receiver for Milan Pines Apartments LLC. Federal National Mortgage Association requested the appointment of a receiver. The Court ruled that M. Shapiro Real Estate Group is appointed as receiver for all the real property located in Ann Arbor, Washtenaw County, Michigan, to protect the parties' respective interests together with all buildings, structures, and improvements on the Receivership Property, which means; A. All of the collateral and assets of Milan Pines Apartments LLC, including, but not limited to, all machinery, apparatus and equipment, materials, supplies, articles of personal property used in connection with or with the operation of the Receivership Property; B. All of the cash, rent, royalties, issues, revenues, income, profits, insurance proceeds and other benefits, including tax appeal refunds, of the Receivership Property and the facilities thereon as more particularly described in the Mortgage filed with the Complaint, under present or future contracts, occupancy agreements, agreements for reimbursement, or otherwise, together with all accounts due or to become due as income in connection with the operations of the Receivership Property; C. All bank accounts maintained by Borrower or other defendants concerning the Receivership Property, including any operating accounts, escrow accounts, insurance-proceeds accounts, cash management accounts, and/or security deposit accounts. Borrower and its officers, directors, employees, partners, trustees, agents, representatives and/or any entity controlled by Borrower or any other defendant are directed to cooperate with the Receiver in the transition of the management of the Receivership Property and shall make immediately available to the Receiver the paper and electronic records required by this Order, provided that Borrower may retain copies, including, but not limited to, all: A. Leases, including communication/correspondence files and any insurance certificates; B. Tenant contact names, email addresses and telephone numbers; C. Copies of all on-site employee payroll records and employee files and applications to include the number of employees on health or dental programs by coverage (single, single plus, or family coverage), gender and age of each employee; D. All security deposits, security deposit accounts and an accounting for all security deposits; E. All information relating to tax appeals, including files, attorney retainer agreements and pleadings; and E. All information relating to tax appeals, including files, attorney retainer agreements and pleadings; and F. Borrower's EIN. Defendant shall provide the Receiver with copies of all existing insurance policies for the property within three business days. The Receiver, the retained professional property manager, FHFA, and the Plaintiff shall each be named as an additional insured or as mortgagee, as their interest may appear, on all existing coverages, including property damage and general liability policies for the Property; The Defendant may not amend, modify, or cancel any existing insurance policy without the written consent of the Receiver, Plaintiff and/or FHFA. Furthermore, the Receiver is required to obtain written consent from the Plaintiff before any such amendment, modification or cancellation of any existing insurance policy. Receiver shall, at its sole cost and expense, obtain and carry in full force and effect for Receiver and its employees insurance coverages for professional liability/errors and omissions and fidelity/crime. Such professional liability/errors and omissions coverage will have a minimum per claim coverage amount of $5 million and fidelity/crime coverage will have a minimum per claim coverage amount equal to the greater of $1 million per claim or four months of revenue using the agreed budget for the property. The maximum deductible or self-insured retention or any combination thereof for each coverage shall be no more than $25,000. The premiums for insurance policies and deductibles for all Receiver Business Insurance shall not be expenses of the Receivership estate. The Receiver is authorized to initiate, defend, negotiate, settle, or otherwise dispose of any claim or litigation that concerns the Property or the Receivership Estate, subject to Fannie Mae's approval to the extent such settlement shall affect Fannie Mae's security interests in the Property and all related Fannie Mae interests thereto. The Receiver shall be vested with all the powers and responsibilities of a receiver as provided in this Order, subject to the rights, titles, powers, privileges, and functions of the Federal Housing Finance Agency ("FHFA") under the Housing and Economic Recovery Act of 2008 (“HERA”). FHFA retains all its federal powers and functions, including the right to assert such powers and protections to preclude the Receiver and the receivership from restraining or affecting the Conservator's powers or functions as to Plaintiff's interests at issue. Fannie Mae and FHFA, as Conservator of Fannie Mae, retain and may exercise without further Court approval any of their rights under the Loan Documents and HERA. The Receiver’s powers as outlined in this Order do not in any way diminish Fannie Mae’s rights under the Loan Documents or FHFA's rights, powers, and functions as Fannie Mae's Conservator and successor under HERA. Any Receiver's certificates or Receiver's liens shall be subordinate to any interests of Fannie Mae under the Loan Documents. Borrower, the other defendants, and all persons, other than the Receiver or those acting in furtherance of a direction from the Receiver, who receive actual notice of this Order by personal service or otherwise are restrained and enjoined from doing any act that would interfere with the Receiver's taking custody, control, possession, or management of the Receivership Property; would harass or interfere with the Receiver in any way; would interfere in any manner with the exclusive jurisdiction of this Court over the Receivership Property; or would constitute a refusal to cooperate with the Receiver or the Receiver's duly authorized agents in the exercise of their duties or authority under any Order of this Court. Subject to Fannie Mae and FHFA's rights and powers under this Order and HERA, the Receiver is vested with all authority necessary or appropriate to carry out the intent and purpose of this Order, and to operate and maintain the Property and the Receivership Estate. Notwithstanding anything to the contrary contained in this Order, the Receiver shall not have the authority to file a petition for relief under Title 11 United States Code for Borrower, any other defendant, or the Receivership Property. The Receiver shall receive payment every month, without further Court order, provided no objections are filed by the parties to the Receiver's monthly reports, within seven business days, such reports are emailed to the parties to this action, through their respective counsel. In the event any objections are timely filed, the Receiver or any other party may file a motion with the Court to determine the propriety of the fees sought or of the objection(s). Such payment shall also include ordinary operating expenses of the Receiver shall also be reimbursed for out-of-pocket costs advanced by Receiver to the extent such costs directly relate to Receiver's duties hereunder; provided, however, that the Receiver must obtain written approval from Fannie Mae before incurring any single cost or expense in excess of $5,000, unless such cost or expense is deemed by Receiver to be an emergency, in which case Receiver shall promptly provide Plaintiff with notice and full explanation of such emergency cost or expense. Should the Receiver have funds in excess of the anticipated operating expenses and fees incurred pursuant to this Order, including an appropriate reserve in an amount to be approved by Fannie Mae, for the Receivership Property, the Receiver shall deliver to Fannie Mae all such funds upon demand by Fannie Mae and/or monthly. Should the Receiver not have sufficient funds to pay all of the Operating Expenses for the Receivership Property, Fannie Mae may, in its sole discretion and subject to further order of this Court, advance its own funds to pay such Operating Expenses as Fannie Mae may elect to have paid. Neither Fannie Mae nor the Receiver shall be liable for any claim, obligation, liability, action, cause of action, cost or expense of Borrower, any other defendant, or the Receivership Property arising out of or relating to events or circumstances occurring before this Order, including without limitation, any contingent or unliquidated obligations and any liability from the performance of services rendered by third parties on behalf of Borrower or any other defendant, and any liability to which Borrower or any other defendant is currently or may ultimately be exposed under any applicable laws on the ownership, use or operation of the Receivership Property and operation of Borrower’s business. The Receiver shall post a surety bond for not less than $10,000.00, and the cost of the Receiver's Bond and any renewals or extensions thereof shall not be an expense of the Receivership Property paid from Receivership Property funds. The Receiver is authorized, in its discretion, to operate the Receivership Property under all existing agreements that are currently in place between Borrower, any other defendant, and any third party, as well as any Borrower's or other defendants' plans and specifications, cost estimates, reports, permits, licenses, certificates of occupancy, development rights, warranties, guaranties, telephone exchanges, and trademarks. The Receiver's actions at all times shall be commercially reasonable, and the Receiver is subject to the personal jurisdiction of this Court. This Order may be amended for cause, either upon the stipulation of the Receiver and the parties, or for cause, after a motion and hearing. About Milan Pines Apartments LLC Milan Pines Apartments LLC owns a real property located at 454 and 481 Greentree Lane, Milan, Washtenaw County, Michigan 48160. Milan is facing a receivership case captioned as Federal National Mortgage Association v. Milan Pines Apartments LLC, Case No. 2:26-cv-11723 (E.D. Mich.), before the Hon. Laurie J. Michelson. The case was filed on May 27, 2026. Fannie Mae alleges that Milan Pines has defaulted on its obligations under the note, mortgage and other loan documents evidencing and/or securing a $1,445,000 loan, originally provided on Nov. 30, 2022, by ORIX Real Estate Capital, LLC d/b/a Lument Capital. Federal National Mortgage Association, aka Fannie Mae, is represented by: Ann Marie Uetz, Esq. Foley & Lardner LLP Tel: (313) 234-7100 E-mail: auetz@foley.com MIRROR LAKE: Plan Exclusivity Period Extended to Aug. 14 -------------------------------------------------------- Judge Christopher M. Alston of the U.S. Bankruptcy Court for the Western District of Washington extended Mirror Lake Village LLC's exclusive periods to file a plan of reorganization and obtain acceptance thereof to Aug. 14 and Oct. 14, 2026, respectively. As shared by Troubled Company Reporter, the Debtor explains that cause exists to extend the its exclusivity periods. This case is still in its early stages, and the Debtor has been using the exclusivity period for its intended purpose: to stabilize the estate and assume necessary contracts, to evaluate restructuring alternatives and engage professionals and vendors, to engage with creditors and work collaboratively on cash collateral matters, and to work toward a confirmable plan. The Debtor claims that the requested extension (of less than two months) will not prejudice creditors or parties in interest, the extension requested is modest and will, if anything, reduce the administrative cost of competing plans and increase the likelihood of a consensual reorganization. These factors demonstrate that an extension of the exclusivity period will facilitate moving the case toward a fair and equitable solution. Mirror Lake Village LLC is represented by: Amit D. Ranade, Esq. Mallory L. B. Satre, Esq. Zachary A. Cooper, Esq. J. Seth Moore, Esq. Snell & Wilmer LLP 600 University Street, Suite 310 Seattle, WA 98101-3122 Tel: 206-741-1420 Email: aranade@swlaw.com msatre@swlaw.com zcooper@swlaw.com semoore@swlaw.com About Mirror Lake Village LLC Mirror Lake Village, LLC runs a senior living facility in Federal Way, Washington, offering independent living, assisted living, and memory care services, along with nearby vacant land. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 26-10599-CMA) on February 27, 2026. In the petition signed by Philip Kaestle, designated officer, the Debtor disclosed up to $50 million in both assets and liabilities. Judge Christopher M. Alston oversees the case. Amit D. Ranade, Esq., at Snell & Wilmer, represents the Debtor as legal counsel. NICK'S PIZZA: Court Extends Cash Collateral Access to July 27 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois issued its eighth interim order authorizing Nick's Pizza & Pub, Ltd. to use cash collateral. Under the eighth interim order, the Debtor is authorized to use its lenders' cash collateral to pay the expenses set forth in its budget through July 27 or the date of the final hearing. The Debtor may make monthly partial rent payments for its Crystal Lake and Elgin restaurants from available operating funds after setting aside a $75,000 reserve and paying Section 330 attorneys' fees pursuant to Section 330 of the Bankruptcy Code. The next hearing is scheduled for July 22. The Debtor's lenders are St. Charles Bank & Trust Company, N.A., Rewards Network Establishment Services, Inc. and On Deck Capital, Inc. St. Charles Bank & Trust, successor by merger with First Community Bank, asserts that it holds a lien on assets of the Debtor pursuant to UCC-1 financing statements it filed against the Debtor. The lender provided a $5.725 million loan to the Debtor to, among other things, assist in the refinancing of the Debtor's real property and construction of a restaurant. Similar security interests may be asserted by Rewards pursuant to its 2017 Receivables Purchase and Marketing Agreement with the Debtor. The agreement included language granting a security interest in certain property owned by the Debtor. A copy of the court's order and the budget is available at https://tinyurl.com/3xasapxa from PacerMonitor.com. About Nick's Pizza & Pub Ltd. Nick's Pizza & Pub, Ltd. is a family-friendly restaurants in Crystal Lake and Elgin, serving thin-crust Chicago pizza. Nick's Pizza & Pub filed Chapter 11 petition (Bankr. N.D. Texas Case No. 24-18037) on December 2, 2024, with assets between $100,000 and $500,000 and estimated liabilities between $1 million and $10 million. Nicholas Sarillo, president of Nick's, signed the petition. Judge Janet S. Baer handles the case. Matthew T. Gensburg, Esq., at Gensburg Calandriello & Kanter, P.C. is the Debtor's legal counsel. St. Charles Bank & Trust Company, N.A., as lender, is represented by: John Adam Powers, Esq. Brotschul Potts, LLC 1 Tower Lane, Suite 2060 Oak Brook Terrace, IL 60181 Phone: (312) 551-9003 apowers@brotschulpotts.com NOBLE FINANCE II: Fitch Assigns 'BB-' Rating on Sr. Unsecured Notes ------------------------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating with a Recovery Rating of 'RR4' to Noble Finance II LLC's proposed senior unsecured notes due 2034. The company intends to use the notes' net proceeds, along with cash on hand, to redeem all the $495 million outstanding Diamond notes. Noble's ratings reflect its strong liquidity, well-positioned fleet and adequate leverage. The ratings also reflect Fitch's expectation of broadly stable day rates and modestly improving rig utilization in 2026-2027, with gradual decreases thereafter in line with Fitch's oil price assumptions. Key Rating Drivers Proposed Notes Simplify Capital Structure: Fitch views the proposed notes issuance favorably as it would facilitate the repayment of the Diamond notes. This would allow the Diamond entities to be contributed to Noble Finance II LLC as restricted subsidiaries and would simplify the structure. The transaction is also leverage-neutral and would allow Noble to maintain its midcycle EBITDA leverage at around 2.0x under Fitch's commodity price assumptions. Leader in Offshore Drilling: Noble's large fleet of high-specification drilling vessels that operate globally supports the credit profile. Noble owns 24 floating rigs, including 16 drillships and eight semi-submersible rigs. It also owns five jackups. Noble operates in all major offshore oil and gas basins, such as the Gulf of Mexico, South America, West Africa, the North Sea, and South-East Asia. As of April 26, 2026, Noble's contract backlog totaled $7.5 billion. Favorable Customer Concentration: Fitch views Noble's customer concentration with strong counterparties favorably. As of March 31, 2026, ExxonMobil, Shell plc (AA-/Stable), BP (A+/Stable), TotalEnergies and Aker BP (BBB/Stable) represented around 21.1%, 19.1%, 14.4%, 12.5% and 11.1% of Noble's backlog, respectively. Noble's relationships with ExxonMobil and Aker BP operate under long-term arrangements and provide cash flow certainty through Fitch's base case. The arrangements allow for maintenance of market pricing and focus on areas of great importance to both operators — Guyana and Suriname for ExxonMobil, and Norway for Aker BP. Solid Floater Market: The well-balanced floater market benefits Noble. Dayrates for seventh generation drillships remain above $400,000 per day with sixth generation drillships showing more weakness. Noble has 14 seventh generation drillships and only two sixth generation drillships. The industry has shown great discipline by scrapping older vessels and remaining patient on re-contracting. Decreased Exposure to Jackup Market: With recent sales of jackup rigs, Noble's exposure to this market is limited. Following the sales, Noble will only have five ultra-harsh environment jackups. This market has remained weaker than the floater market. Elevated Near-Term Capex: Capex will be high in 2026 as Noble increases spending on vessels in preparation for the commencement of new contracts. Fitch expects capital spending to normalize to around $450 million after 2026. A portion of the capex will be reimbursed by the counterparties to the new contracts. The contracts will generate significant cashflow throughout the forecast. Adequate Leverage: Noble's leverage increased with the funding of the Diamond acquisition but remains within rating tolerances. Fitch views the increase in leverage as manageable and forecasts the leverage remaining towards the upper end of the leverage sensitivities. Peer Analysis Noble's offshore peers include Valaris Limited (B+/Rating Watch Negative) and Seadrill Limited (B+/Stable). Valaris is smaller than Noble, with thinner margins and comparable leverage. Seadrill is smaller than Noble, with lower margins and lower leverage. Onshore peers include Nabors Industries, Ltd. (Nabors; B/Stable) and Precision Drilling Corporation (Precision; BB-/Stable). All three peers generate narrower EBITDA margins than Noble. Precision is smaller and less levered. Nabors is of comparable size and is comparably levered. Fitch’s Key Rating-Case Assumptions - Brent oil prices of $87/barrel (bbl) in 2026, $65/bbl in 2027 and $60/bbl thereafter; - EBITDA margins maintain in the low- to mid-30% range throughout; - Capex of $640 million in 2026 due to elevated spending to remobilize vessels for new contracts; - Quarterly dividends maintained at $0.50/share. 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 (bb-, Moderate), Market and Competitive Positioning (b+, Moderate), Diversification and Asset Quality (bb, Higher), Company Operational Characteristics (b, Higher), Profitability (bbb+, Moderate), Financial Structure (bb+, Moderate), 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, 15% for the forecast year 2027, 25% for the forecast year 2028 and 50% for the forecast year 2029. - The Governance Impact assessment of 'Good' results in no adjustment. - The Operating Environment Impact assessment of 'a-' results in no adjustment. - The SCP is 'bb-'. To derive the IDR: - Application of Fitch's Parent Subsidiary Linkage Considerations Rating Criteria results in a consolidated approach. RATING SENSITIVITIES Factors that Could, Individually or Collectively, lead to Negative Rating Action/Downgrade - A loss of material customer contracts; - Deteriorating market fundamentals, such as a sustained decrease in day rates and offshore rig utilization; - A significant increase in gross debt; - Midcycle EBITDA leverage above 2.5x; - Weakening liquidity; Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustainable, stronger offshore drilling market fundamentals, as shown by higher day rates, increased utilization, longer contract terms and a growing backlog; - A record of conservative financial policy keeping gross debt in check; - Midcycle EBITDA leverage below 1.5x. Liquidity and Debt Structure Liquidity at 1Q26 consisted of $663 million of cash and $543 million available under the credit facility that matures in 2028. The only other maturity is the senior notes in 2030. Liquidity should remain healthy as long as capital spending, acquisitions and stock buybacks remain moderate. Issuer Profile Noble is a leading global provider of offshore contract drilling services. The company maintains a fleet of 29 offshore rigs consisting of 14 seventh-generation drillships, two sixth-generation drillships, eight sixth-generation semisubmersibles, and five ultra-harsh environment jackups. Date of Relevant Committee 25 February 2026 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 Noble's Climate Vulnerability Score (Climate.VS) of 60 by 2035 is consistent with the oilfield services industry and represents an elevated level of risk. This is due to the fact that offshore drilling operations, as with their onshore counterparts, face the risk of regulatory scrutiny and environmental regulations. Furthermore, oilfield services companies face risks relating to emission production, personnel safety, environmental disasters, and other catastrophic events. Noble's diverse operational basins offer a degree of geographical diversification which may minimize localized regulatory impact. Key transition risks arise from potential reductions in oil and gas demand, and related demand for oil field services, driven by policies designed to reduce the use of oil and gas in the global economy, and in the shorter term from policies designed to limit greenhouse gas emissions from the production of oil and gas. These risks do not have a material influence on the rating currently, given the very long-term time frame over which the transition may take place and uncertainty regarding the extent and nature of changes, and markets and companies response to them. Noble has taken numerous steps to mitigate risks from climate vulnerability: The company has a board-level Safety and Sustainability Committee to provide oversight and a new Health, Safety, & Environment Policy. Noble integrates climate risks into its Enterprise Risk Management processes, and energy transition scenarios into formalized strategy considerations. In addition, Noble will report in accordance with the Taskforce on Climate-related Financial Disclosures (TCFD) standards. The Energy Efficiency Insight (EEI) platform is being rolled out to its rigs, allowing for real-time digital monitoring of the fleet's energy consumption and emissions. Noble is a participant in the Greensand Consortium, which is targeting the use of discontinued oil and gas fields for permanent storage of CO2 offshore Denmark and performed the first-ever CO2 storage below the Danish North Sea. Noble reports Scope 1 and 2 emissions through ESG reports with a commitment to reduction but does not currently have set reduction targets. ESG Considerations Noble has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts due to the risk that a possible offshore oil spill may affect the drilling company. This factor has a negative impact on the credit profile, and are relevant to the ratings 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 ----------- ------ -------- Noble Finance II LLC senior unsecured LT BB- New Rating RR4 OSCAR ACQUISITIONCO: Moody's Affirms 'Caa3' CFR, Outlook Negative ----------------------------------------------------------------- Moody's Ratings affirmed Oscar AcquisitionCo, LLC's, which is doing business as Oldcastle BuildingEnvelope ("OBE") Caa3 corporate family rating, the Caa2 ratings on the backed senior secured first lien term loan due 2029, backed senior secured first lien revolving credit facility due 2029 and 2027 (with 6% maturing in 2027) and the Ca rating on the existing backed senior unsecured notes due 2030. Moody's have also affirmed and appended a limited default (/LD) designation to its Caa3-PD probability of default rating (PDR) revising it to Caa3-PD/LD. The rating outlook remains negative. The rating action reflects the open market debt purchase of about $544 million of OBE's $585 million senior unsecured notes due 2030 by an affiliate fund of KPS Capital Partners. The notes remain outstanding following the purchase, and the company continues to make interest payments on the full $585 million principal amount. The concentration of the unsecured notes in the hands of the sponsor introduces restructuring optionality. The company states that it is current on all of its debt obligations and remains compliant with its debt covenants. Moody's views the debt purchase by an affiliate fund of OBE's sponsor at a significant discount to par as a distressed exchange and a limited default under Moody's definition. Moody's appended a "/LD" designation to OBE's Caa3-PD PDR, which will be removed in approximately three business days. The negative outlook reflects Moody's expectations for negative free cash flow generation and weak liquidity over the next 12-18 months with heightened default risk due to its limited covenant cushion. Governance considerations are relevant to the rating action, including the affiliate fund of the sponsor's purchase of the majority of the company's unsecured notes at a discount, which Moody's views as indicative of an aggressive financial policy. RATINGS RATIONALE OBE's Caa3 CFR reflects the company's weak liquidity, rapid erosion in operating performance and credit metrics, limited geographic diversification and vulnerability to regional economic swings and cyclical end markets. Prospects for a rapid recovery in earnings and leverage remain slim in a soft economic environment. Moody's expects credit metrics and operating performance to remain very weak. Q1 2026 results reflected a further deterioration in operating performance, with revenue declining approximately 4% year-over-year and gross margins compressing significantly due to softer end-market demand and rising material and freight costs. The company has implemented cost rationalization initiatives, but the benefits will only be fully realized over time. OBE generated solid profit margins and positive free cash flow in 2024, but visibility is limited if and when the company can return to historical levels of operating performance. The Caa3 CFR is supported by no material near-term debt maturities. However, OBE's liquidity is weak, driven by ongoing free cash flow deficits that Moody's expects to persist through 2026. As of March 28, 2026, the company had $117 million drawn on its $340 million revolving credit facility. While this suggests meaningful availability, actual access could be constrained by its springing first-lien net leverage covenant of 7.5x, triggered at 35% utilization. The covenant was not tested in Q1 2026 as revolver utilization was below 35%. But Moody's believes the first-lien net leverage calculation is above 7.5x. In 2025, the company amended $320 million of the revolver to extend its maturity to 2029, reducing the portion due in 2027 to $20 million for non-consenting lenders. In Q1 2026, certain OBE subsidiaries entered into an uncommitted $100 million revolving accounts receivable financing facility with an affiliate of the sponsor, maturing March 2027. As of March 28, 2026, $30 million was outstanding under the facility. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if OBE meaningfully recovers its profitability and attains a more sustainable capital structure. Moody's also expects the company to maintain at least adequate liquidity before considering an upgrade. The ratings could be downgraded if the company experiences a deterioration in its liquidity, if there's an increased likelihood of debt restructuring and/or an expectation of weaker recovery in the event of default. Failure to improve its profitability and cash flow generation could also lead to a downgrade. Headquartered in Dallas, Texas, OBE manufactures and distributes custom architectural glass, aluminum glazing systems for windows and doors, and architectural hardware and supplies. For the LTM period ending March 28, 2026, the company recorded $1.7 billion of revenue. KPS Capital Partners (KPS) acquired OBE in April 2022 after OBE was separated from CRH plc, an Irish building materials company. 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. PALMAIRE AVE: Hires Potenza Baran & Gillespie P.C. as Counsel ------------------------------------------------------------- Palmaire Ave and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Arizona to employ Potenza, Baran & Gillespie, P.C. as counsel. The firm will provide these services: a. advice with respect to the powers and duties of the Debtor; b. representation of the Debtor in connection with all court appearances; preparation on behalf of the Debtor of necessary applications, motions, schedules, answers, objections, orders, reports, and other documents; d. preparation of a plan and disclosure statement and handling all matters and court hearings related thereto; e. representation of the Debtor in discussions with the United States Trustee's office; f. representation in connection with negotiations involving creditors, parties-in-interest, and possible purchasers; and g. all other legal services for the Debtor which may be necessary. The firm will be paid at these rates: Grant L. Cartwright $625 per hour Andrew A. Harnisch $625 per hour Eric W. Moats $550 per hour Emma Smith $330 per hour Michelle Giordano, paralegal $280 per hour Associates $535 per hour The firm holds a retainer in the amount of $28,338.50. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Cartwright, 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: Grant L. Cartwright, Esq. May, Potenza, Baran & Gillespie, PC 1850 North Central Avenue, Suite 1600 Phoenix, AZ 85004 Telephone: (602) 252-1900 Facsimile: (602) 252-1114 Email: gcartwright@maypotenza.com About Palmaire Ave LLC Palmaire Ave LLC is a real estate holding and investment company engaged in property ownership and asset management activities. The company's operations are centered on managing real estate-related investments and commercial property interests. Palmaire Ave LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-04920) on May 18, 2026. In its petition, the debtor reports estimated assets between $100,001 and $1 million and estimated liabilities within the same range. Honorable Bankruptcy Judge in the District of Arizona handles the case. The debtor is represented by Grant L. Cartwright, Esq. of May, Potenza, Baran & Gillespie, P.C. POINTCLICKCARE TECHNOLOGIES: Moody's Affirms 'B3' Term Loan Rating ------------------------------------------------------------------ Moody's Ratings has affirmed PointClickCare Technologies Inc.'s Backed Senior Secured First Lien Term Loan B and Backed Senior Secured First Lien Revolving Credit Facility at B3. PointClickCare Corp.'s (PointClickCare or PCC) corporate family rating was also affirmed at B3 and the probability of default rating at B3-PD. The outlooks for both entities remain stable. The company plans to raise a $500 million fungible incremental Term loan B due 2031, with the net proceeds alongside cash on hand expected to fund up to a $650 million dividend to PointClickCare shareholders. The company is also planning to extend their existing Backed Senior Secured First Lien Revolving Credit Facility two years to 2031. "The debt funded dividend weakens PointClickCare financial leverage (pro forma debt to EBITDA on Moody's-adjusted basis) to about 6.8x (PF Q2/26) from about 5.2x previously, which Moody's expects to remain elevated (above 6x) over the next 12-18 months with limited buffer for potential operational underperformance" said Will Gu, Moody's Ratings analyst. The stable outlook reflects Moody's expectations that PointClickCare will maintain good liquidity with debt/EBITDA above 6x in the next 12-18 months. The outlook also reflects PointClickCare's robust growth and good operating performance. RATINGS RATIONALE PointClickCare Corp.'s rating is constrained by: 1) high debt-to-EBITDA that is expected to remain above 6x; 2) shareholder-favoring financial strategy highlighted by PCC's willingness to engage in materially leveraging transactions; and 3) its relatively small size, compared to rated peers, and focus on the niche end market of software for skilled nursing facilities and long term care homes, and solutions to Health Systems and Health Plans. The company's rating is supported by: 1) favorable nursing and care home demographics that support revenue and EBITDA growth; 2) a subscription-based fee model (over 90% of revenues) that add stability to PCC's revenue; 3) an asset light business model supporting its ability to generate free cash flow; and 4) solid revenue and margin growth potential from increased volumes, price uplifts, and efficiency improvements from ongoing acquisition integration. PCC has good liquidity. Pro forma for the transaction, sources total around $570 million, consisting of cash balance around $226 million as of April 2026, Moody's expectations of approximately $140 million free cash flow through Oct 2027, and $200 million availability under PCC's revolving credit facility. Uses are limited to about $20 million in mandatory debt amortization. The revolver has a springing first lien net leverage ratio of 6.25x when the revolver is 35% drawn. PointClickCare through its operating subsidiary, PointClickCare Technologies Inc. has only one class of debt: backed senior secured first lien revolving credit facility expiring in 2029 (to be extended to 2031) and backed senior secured first lien term loan due in 2031. Both instruments are rated B3, in line with PCC's B3 CFR, because they make up the preponderance of the debt in the capital structure. The revolver and term loans are pari-passu and are secured by a first-lien pledge on substantially all the assets of PCC and its domestic subsidiaries. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company demonstrates consistent growth track record, maintains Debt-to-EBITDA below 6.5x, interest coverage above 2.0x, and free cash flow (FCF)-to-debt above 5%, and maintains a more conservative financial strategy. The ratings could be downgraded if organic revenue or EBITDA declines, or Liquidity profile deteriorates due to sustained negative free cash flow. The principal methodology used in these ratings was Software published in December 2025. PCC's B3 rating is two notches below the scorecard-indicated outcome of B1 at LTM Q2/2026. The final rating incorporates Moody's projected metrics for the company post dividend recap and takes into account recurring event risk from leveraging actions including debt-funded dividends that the company faces. Headquartered in Mississauga, Ontario, PointClickCare Corp. provides Software as a service (SaaS) platforms that integrate electronic health records within the critical business functions of skilled nursing facilities in the US and Canada. The company is privately owned by a group controlled by the company's initial founders. PRIME LIMITED: Hires SMB Accounting Inc. as Accountant ------------------------------------------------------ Prime Limited Holdings, LLC, d/b/a Addison Dental Associates, PC, seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ SMB Accounting, Inc. as accountant. The firm will provide these services: a. assist management in determining appropriate account coding for recurring transactions; b. recording of transactions in general ledger and preparation of trial balance based upon management approved Chart of Accounts; c. reconciliation of all connected Bank and Credit Card Accounts & Monthly Financial Statement Meeting. The firm will be paid at $450 per month. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Lisa Laday-Davis 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: Lisa Laday-Davis SMB Accounting, Inc. 747 Davis Rd Stockbridge, GA 30281 Tel: (404) 910-3192 About Prime Limited Holdings LLC Prime Limited Holdings, LLC, doing business as Addison Dental Associates, P.C., operates a dental practice in Smyrna, Georgia. It provides general dentistry services, including cosmetic and family dental care, to patients in the Smyrna and greater Atlanta area. Prime Limited Holdings sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 26-56003) on May 4, 2026, with $1 million to $10 million in assets and liabilities. Sims W. Gordon, Jr., Esq., at The Gordon Law Firm, PC represents the Debtor as bankruptcy counsel. PROGRESS TELECOMM: Hires Biggs Law Firm PLLC as Attorney -------------------------------------------------------- Progress Telecomm NC, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to employ Biggs Law Firm, PLLC as attorney. The firm's services include: a. undertaking any and all steps and actions necessary to authorize the use of cash collateral pursuant to § 363 of the Bankruptcy Code, if applicable; b. advising the Debtor with respect to its powers and duties as debtor-in possession in the continued management, operation, and reorganization of its business; c. reviewing any and all claims asserted against the Debtor by its creditors, equity holders, and parties in interest; d. Representing the Debtor's interests at the Meeting of Creditors under Sec. 341 of the Bankruptcy Code and at any other hearing or conference scheduled in the Bankruptcy Case before the Court related to the Debtor; e. attending any meetings, conferences, and negotiations with representatives of creditors and other parties in interest; f. reviewing and examining, if necessary, any and all transfers which may be avoided a preferential or fraudulent transfers under the appropriate provisions of the Bankruptcy Code; g. taking any and 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 action commenced against the Debtor, negotiations concerning all litigation in which the Debtor is, or may become involved, and objections to any claims filed against the bankruptcy estate of the Debtor; h. preparing, on behalf of the Debtor all motions, applications, answers, orders, reports, and pleadings necessary to the administration of the bankruptcy estate; i. preparing, on behalf of the Debtor, any plan of reorganization, disclosure statement, and all related agreements and/or documents, and take any necessary actions on behalf of the debtor to obtain confirmation of such plan of reorganization and approval of such disclosure statement; j. representing the Debtor in connection with any potential post petition financing; k. advising the Debtor in connection with the sale or liquidation, if applicable, of any assets and property to third parties; l. appearing before the Court, or any such appellate court, and the Office of the Bankruptcy Administrator to protect the interests of the Debtor and the bankruptcy estate; m. representing the Debtor with respect to any general, corporate, or transactional matters that arise during the course of the administration of the Bankruptcy Case; and n. assisting and advising the Debtor with respect to negotiation, documentation, implementation, consummation, and closing of any corporate transactions, including sales of assets, in the Bankruptcy Case. The firm will be paid at these rates: Laurie B. Biggs (Attorney) $425 per hour Joseph A. Bledsoe, III (Attorney) $375 per hour Wendy Karam (N.C. Certified Paralegal) $200 per hour Susan Omell $185 per hour Christina Crews $185 per hour Qiara McCain (Paralegal) $150 per hour Lindsey Gadwell (Legal Assistant) $100 per hour The firm received a retainer in the amount of $10,000. Fees and expenses of $6,257.50 were paid from the retainer, leaving $3,742.50 in the trust account. In addition, the firm will seek reimbursement for its out-of-pocket expenses. Laurie B. Biggs 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: Laurie B. Biggs, Esq. BIGGS LAW FIRM, P.A. 9208 Falls of Neuse Road, Ste. 120 Raleigh, NC 27615 Telephone: (919) 375-8040 E-mail: lbiggs@biggslawnc.com About Progress Telecomm NC LLC Progress Telecomm NC, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 26-02162) on May 13, 2026, with $500,001 to $1 million in assets and liabilities. Judge Joseph N. Callaway presides over the case. Laurie Biggs, Esq. at Biggs Law Firm PLLC represents the Debtor as legal counsel. QUANTUM CORP: Three-Part $100M Deal Targets Debt-Free Balance Sheet ------------------------------------------------------------------- Quantum Corporation announced three concurrent transactions that together are expected to significantly strengthen the Company's balance sheet and provide capital for growth. First, the Company has entered into securities purchase agreements to sell shares of common stock in a private placement, which was led by funds managed by Two Seas Capital LP and Oaktree Capital Management, L.P., with participation from several other institutional investors, generating gross proceeds of $100.0 million. Second, the Company intends to repay all of its outstanding term debt with a portion of the proceeds of the private placement. Third, Dialectic Technology SPV LLC, as sole beneficial owner of the Company's Senior Secured Convertible Notes, has agreed to voluntarily convert the entire outstanding principal amount of those Convertible Notes, together with all accrued and unpaid interest thereon, into shares of common stock. Private Placement On June 1, 2026, Quantum entered into Securities Purchase Agreements with certain accredited investors, pursuant to which the Company, in a private placement, agreed to issue and sell to the Investors an aggregate of 10,615,712 shares of the Company's common stock, par value $0.01 per share, at a price of $9.42 per share, for aggregate gross proceeds to the Company of approximately $100.0 million. After deducting placement agent fees and other offering expenses payable by the Company, the Company expects net proceeds of approximately $94.7 million. Cantor Fitzgerald & Co. acted as lead placement agent and Lake Street Capital Markets, LLC acted as placement agent for the Company in connection with the Private Placement. The Company intends to use the proceeds from the Private Placement to repay all of its existing term debt, with the remaining proceeds allocated for working capital and general corporate purposes. The private placement provides Quantum with greater financial flexibility to support ongoing operations and invest in growth initiatives. The Company also plans to commission a report by a third party technology consulting firm on the importance of magnetic tape to HPC data centers. Pursuant to the Purchase Agreement, until the date that is 90 calendar days following the effective date of the registration statement covering the resale of the Common Stock sold in the Private Placement, the Company has agreed that it will not, without the prior written consent of the Investors holding at least a majority in interest of the shares of Common Stock then held by the Investors: (i) other than in connection with an Exempt Issuance (as defined in the Purchase Agreement), issue, enter into any agreement to issue, or announce the issuance or proposed issuance of, any shares of Common Stock or Common Stock Equivalents (as defined in the Purchase Agreement), or (ii) file any registration statement or any amendment or supplement thereto, other than in furtherance of an Exempt Issuance or as contemplated by the PIPE Registration Rights Agreement (as defined below) and the Amendment to Registration Rights Agreement (as defined below). In addition, the Company's officers, directors and Dialectic Technology SPV LLC, the sole beneficial owner of the Company's 10.00% PIK Senior Secured Convertible Notes due 2028, each executed a lock-up agreement, pursuant to which each such person agreed, without the prior written consent of Cantor, and subject to certain exceptions, not to: (i) directly or indirectly, offer for sale, sell, pledge or otherwise dispose of any shares of Common Stock (including shares of Common Stock that may be deemed to be beneficially owned or hereafter acquired), or securities convertible into or exercisable or exchangeable for Common Stock; (ii) enter into any swap or other derivatives transaction that transfers any of the economic benefits or risks of ownership of shares of Common Stock; or (iii) publicly disclose the intention to do any of the foregoing, until the date that is 30 calendar days following the effective date of the registration statement covering the resale of the Common Stock sold in the Private Placement. Registration Rights Agreement In connection with the Private Placement, the Company entered into Registration Rights Agreements with the Investors, dated as of June 1, 2026, pursuant to which the Company has agreed to: (i) prepare and file a registration statement with the Securities and Exchange Commission covering the resale of the Common Stock sold in the Private Placement within 45 days of the closing of the Private Placement, (ii) use commercially reasonable efforts to have such registration statement declared effective within the time period set forth in the PIPE Registration Rights Agreement, and to keep such registration statement effective until the date that all registrable securities covered by such registration statement: (a) have been sold, thereunder or pursuant to Rule 144, or (b) may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144. The PIPE Registration Rights Agreement includes customary indemnification rights in connection with the registration statement. Amendment to Term Loan Agreement On June 1, 2026, the Company entered into a Sixteenth Amendment to its Term Loan Credit and Security Agreement, dated as of August 5, 2021 (as amended, restated, supplemented or otherwise modified prior to the date of the Sixteenth Amendment, the "Existing Credit Agreement" and the Existing Credit Agreement, as amended by the Sixteenth Amendment, the "Credit Agreement"), with the other loan parties party thereto, the lenders party thereto and Alter Domus (US) LLC, as disbursing agent and collateral agent. Pursuant to the Sixteenth Amendment, among other things, the maturity date of the loans under the Credit Agreement was extended to September 2028 and a portion of the proceeds of future equity issuances by the Company are allowed to be retained by the Company rather than 100% of the net proceeds having to be used to mandatorily prepay loans under the Credit Agreement. In addition, the Sixteenth Amendment clarifies that, following the conversion or exchange of the Notes (as described below), the liens securing the Notes, and the intercreditor agreement governing the priority of those liens vis-a-vis the liens securing the obligations of the Company under the Existing Credit Agreement, will terminate, and all of the outstanding obligations under the Credit Agreement will continue to be secured by the assets of the Company on a first priority basis. Conversion Agreement In order to facilitate the Private Placement and the Sixteenth Amendment, Dialectic, as the sole beneficial owner of the Notes issued under the Indenture dated December 18, 2025, agreed to voluntarily convert the Notes into Common Stock. Pursuant to a Conversion Agreement dated June 1, 2026, by and among the Company, Dialectic and, solely with respect to Sections 7.1 and 7.3 and Articles III and X thereof, U.S. Bank Trust Company, National Association, as the trustee and Notes Collateral Agent under the Indenture, Dialectic will convert the entire principal amount of the Notes, together with all accrued and unpaid interest thereon, which is approximately $57,242,000, at the Closing, subject to certain conditions set forth in the Conversion Agreement. At the Closing, the Notes will be canceled in accordance with the Indenture, and the Indenture will be subject to satisfaction and discharge in accordance with the Indenture. As consideration for Dialectic's agreement to voluntarily convert the Notes to facilitate the Private Placement and the Sixteenth Amendment, the Company agreed to, at the Closing: (i) amend the Indenture to waive certain notice and settlement requirements otherwise applicable to a voluntary exchange under the Indenture; (ii) issue to Dialectic approximately 3.1 million additional shares of the Company's Common Stock in connection with the Conversion, which represents the quotient of: (A) approximately $13.0 million, the present value of nominal PIK interest that would accrue on the Notes from the Closing to the maturity date thereof, assuming the Notes had remained outstanding until the end of the stated term, discounted at a rate of 11%, plus (B) approximately $3.0 million, the Term Loan Deferred Cash Interest Amount (as defined in the Credit Agreement) owed to Dialectic, divided by $5.1940, the current conversion price of the Notes; and (iii) issue to Dialectic the Conversion Warrant. It is anticipated that an aggregate of 14,104,620 shares of common stock will be issued to Dialectic as a result of the conversion of the Convertible Notes and the agreed upon consideration described above. Warrant On June 1, 2026, as additional consideration for the Conversion, the Company issued to Dialectic a warrant to purchase up to 105,911 shares of Common Stock at an exercise price of $5.1940 per share (equal to the conversion price of the Notes in effect following the reset period ending March 31, 2026), at any time until the fifth anniversary of the issuance of the Conversion Warrant. The exercise price and the number of shares underlying the Conversion Warrant are subject to adjustment in the event of specified events, including dilutive issuances at a price lower than the exercise price of the Conversion Warrant, a subdivision or combination of the Common Stock, a reclassification of the Common Stock or specified dividend payments, subject to certain limitations as set forth in the Conversion Warrant. Upon exercise, the aggregate exercise price may be paid, at Dialectic's election, in cash or on a net issuance basis, based upon the then current market price of the Common Stock at the time of exercise. The Conversion Warrant includes certain antidilution protections in favor of Dialectic, subject to certain limitations, including limitations that restrict Dialectic from beneficially owning more than 19.99% of the Company's outstanding Common Stock and certain exclusions. Additionally, Dialectic may require the Company to repurchase the unexercised portion of the Conversion Warrant for an amount equal to $844,255, proportionately adjusted for the portion of the Conversion Warrant subject to repurchase, after the fourth anniversary of the issuance of the Conversion Warrant, or, prior to the fourth anniversary, upon a change of control of the Company or immediately prior to the occurrence of a voluntary dissolution, liquidation or winding up of the affairs of the Company. In connection with the Conversion Warrant, on June 1, 2026, the Company and Dialectic entered into a First Amendment to the Registration Rights Agreement dated as of September 23, 2025, pursuant to which, among other things, the Warrant Registration Rights Agreement was amended to provide Dialectic with certain registration rights with respect to the shares of Common Stock issuable upon any exercise of the Conversion Warrant, as well as a First Amendment to the Warrant to Purchase Common Stock dated September 23, 2025 issued to Dialectic, pursuant to which, among other things, the Forbearance Warrant was amended to update its terms to be consistent with the Conversion Warrant. Right of First Refusal Agreement On June 1, 2026, the Company entered into a Right of First Refusal Agreement with Dialectic and certain investors in the Private Placement, pursuant to which the Company granted a right of first refusal to purchase 25% of all equity securities to each Stockholder that the Company may issue or sell for a period of the earlier of six months following the date of the ROFR Agreement and completion of the Company's next equity financing transaction, subject to certain exceptions as described in the ROFR Agreement. Management Commentary "This transaction represents a significant step forward for Quantum," said Hugues Meyrath, CEO of Quantum Corporation. "We have meaningfully strengthened our balance sheet, eliminated our debt position, and brought in new capital to support the business. Following these actions and debt paydown, we expect to emerge with a positive net cash position and a sustainable capital structure. These transactions signal strong support and credible backing from institutional partners and provide a stronger financial foundation. With improved flexibility, we are better positioned to support our customers, invest in growth, and execute our strategy with a clearer path to long-term value creation, including profitable growth over time." "These transactions address historical balance sheet constraints and provide the flexibility needed to execute on the company's growth opportunities," said John Fichthorn, co-founder and managing partner of Dialectic Capital Management. "Given the significant de-risking these transactions represent and the substantial growth opportunities we see for Quantum, Dialectic has agreed to an early conversion of our Convertible Notes to equity. We believe Quantum is now much better positioned for the broader and growing market opportunity in data storage. With AI, the nature of data storage is changing and data storage requirements are evolving toward long-term, cost-efficient, and energy-aware solutions. Tape and complementary platforms have an increasing role to play. Quantum is well positioned to benefit from that shift." Board Approval Because of the relationships among the Company, Dialectic and John Fichthorn, a member of the Company's board of directors and Managing Partner of Dialectic Capital Management, the transactions described herein, other than the Private Placement and transactions contemplated thereunder (including the Purchase Agreement and PIPE Registration Rights Agreement) which were reviewed and approved by the full Board, were reviewed and approved by a special committee of the Board comprised solely of independent and disinterested directors. On May 31, 2026, the Special Committee approved and declared advisable the Transactions and determined that the terms of the Transactions are fair to, and in the best interests of, the Company and its stockholders. On May 31, the Board, with Mr. Fichthorn abstaining from discussion and from voting on the matter, approved and declared advisable the Transactions and determined that the terms of the Transactions are fair to, and in the best interests of, the Company and its stockholders. On June 1, the final terms of the Private Placement, including the aggregate amount of shares to be sold and the applicable purchase price per share, were authorized and approved by a pricing committee of the Board. Additional Information Full text copies of the Purchase Agreement and the PIPE Registration Rights Agreement are available at https://tinyurl.com/kp66jp84 and https://tinyurl.com/5n83jkpb, respectively. Full text copies of the Sixteenth Amendment, the Conversion Agreement, the Conversion Warrant, the Amendment to Registration Rights Agreement, are available at https://tinyurl.com/mvmr4k58, https://tinyurl.com/y9vdka5e, https://tinyurl.com/3sf78w6s, https://tinyurl.com/55dmjjcj, https://tinyurl.com/3er9zvfy, andhttps://tinyurl.com/2zum5dwf, respectively. About Quantum Corporation Quantum Corporation, together with its consolidated subsidiaries, stores and manages digital video and other forms of unstructured data, providing streaming performance for video and rich media applications, along with low-cost, long-term storage systems for data protection and archiving. The Company helps customers around the world capture, create and share digital data and preserve and protect it for decades. Bellevue, Wash.-based Grant Thornton LLP, the Company's auditor since 2013, issued a "going concern" qualification in its report dated August 26, 2025, attached to the Company's Annual Report on Form 10-K for the year ended March 31, 2025, citing that the Company believes it will be in violation of the net leverage coverage covenant for the quarter ended September 30, 2025. The Company's plan contemplates the Company negotiating waivers to these covenants and is evaluating strategies to restructure or refinance the existing term debt. If the Company is unable to obtain additional waivers, the term debt will become immediately due, and additional liquidity will be required to satisfy the obligations. The Company's ability to achieve the foregoing elements of its business, which may be necessary to permit the realization of assets and satisfaction of liabilities in the ordinary course of business, is uncertain and raises substantial doubt about its ability to continue as a going concern. The Company is required to repay the Term Loan on August 5, 2026. The Company does not have sufficient cash to make this repayment, nor does the Company expect to generate sufficient cash through operating activities to repay the Term Loan by August 5, 2026. The Company may be required to use proceeds from the Standby Equity Purchase Agreement or other financing sources to meet this obligation. There can be no assurance that the Company will be able to raise sufficient proceeds under the SEPA on acceptable terms, or at all. As of December 31, 2025, the Company had $149.3 million in total assets, $333.5 million in total liabilities, and $184.2 million in total stockholders' deficit. REEL TRIMS: Gets Interim OK to Use Cash Collateral -------------------------------------------------- Reel Trims, LLC received third interim approval from the U.S. Bankruptcy Court for the Southern District of Florida, to use cash collateral. The Debtor intends to use cash collateral in accordance with a projected operating budget, allowing for up to a 10% variance per expense category. It argued that such use is necessary given its inability to access funds that may force the business to cease operations and significantly diminish the value of its assets. The Debtor projects total operational expenses of $105,860 for June and $69,505 for July. The Debtor identifies multiple creditors with potential secured interests based on UCC financing statements, including lenders such as the U.S. Small Business Administration and various funding companies, though it notes uncertainty regarding the exact alignment of certain filings with specific creditors and reserves the right to challenge the validity, perfection, and value of those liens at a later stage. Importantly, none of these creditors currently control the Debtor's bank accounts, which the Debtor wishes to access freely. To address creditor concerns, the Debtor offers adequate protection through the preservation of the business as a going concern and by granting replacement liens on post-petition assets equivalent in scope and priority to pre-petition liens. While the Debtor has not yet presented evidence of an equity cushion, it reserves the right to do so later. A copy of the order is available at https://shorturl.at/2RxOh from PacerMonitor.com. The next hearing is set for July 29. About Reel Trims, LLC Reel Trims, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 26-14072-EPK) on March 31, 2026. In the petition signed by Ronald Turba, owner, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Erik P. Kimball oversees the case. Steven E. Wallace, Esq., at Steven E. Wallace, PL, represents the Debtor as legal counsel. SAKS GLOBAL: Gets Court Nod on Reorganization Plan, Eyes Emergence ------------------------------------------------------------------ Saks Global Enterprises LLC, a leading multi-brand luxury retail company, on June 5, 2026, received approval of its Plan of Reorganization from the U.S. Bankruptcy Court for the Southern District of Texas. The Plan gained support across the capital structure from participating creditors, the overwhelming majority of which voted in favor. Confirmation of the Plan paves the way for Saks Global to exit chapter 11 in the coming weeks with a strengthened financial foundation. "Securing approval of our Plan is an incredible achievement for Saks Global, and the broad-based support we have received from our capital partners, brand partners and other key stakeholders reflects confidence in our future," said Geoffroy van Raemdonck, Chief Executive Officer, Saks Global. "With our capital partners' commitment and the dedication of our talented team, we are on track to emerge as a stronger, more focused company, poised for profitable and sustainable growth. I firmly believe in Saks Global's enduring role as a leader in the luxury retail ecosystem, delivering exceptional experiences for customers and serving as the premier gateway to the U.S. luxury consumer for our brand partners. I am confident we are well positioned to define the future of luxury retail." At emergence, the Company's debt will be reduced significantly - by nearly 75% - and Saks Global will have the liquidity necessary to support its operations and invest in its future. The Plan establishes the foundation for the Company to accelerate sales growth, with a focus on strong full-price selling, and to generate $9 billion in total Gross Merchandise Value and double-digit adjusted EBITDA by fiscal year 2030. Brandy Richardson, Chief Financial Officer, Saks Global, added, "With significantly reduced debt on the Company's balance sheet at emergence and having already achieved substantial cost savings through the optimization of our footprint, operations and organization, our business is well positioned for future success. We are grateful for the support of all of our stakeholders, including our capital partners and brand partners, and look forward to driving profitable growth as a stronger Saks Global, leveraging our distinct and differentiated assets." In less than five months, Saks Global has made significant progress evolving its business to support a more sustainable future, including: * Establishing a strong financial foundation, with an improved capital structure and the liquidity necessary to invest in the core areas of the business to support long-term growth. * Strengthening its valued brand partner relationships, facilitating delivery of an expertly curated product assortment and providing access to the Company's loyal customers across the U.S. * Optimizing its store footprint and supply chain network to support its integrated retail model, which is anchored by the Company's best-performing stores in markets with a high concentration of luxury customers, as well as distinct e-commerce platforms and remote selling services. * Focusing on its core luxury business, by streamlining the majority of Saks Global's off-price business to prioritize luxury and full-price selling and right sizing the Company's corporate team to align with this go-forward strategy. The Company's actions are translating into sustained momentum across numerous areas of the business. Saks Global's go-forward store sales continue to show steady improvement, reflecting stronger customer engagement as a result of increased inventory. With a strong plan for the future, Saks Global is well positioned for profitable and sustainable growth, poised to become the leading multi-brand luxury retailer in the U.S. About Saks Global Enterprises LLC Saks Global is the largest multi-brand luxury retailer in the world, comprising Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow. Its retail portfolio includes 70 full-line luxury locations, additional off price locations and five distinct e-commerce experiences. With talented colleagues focused on delivering on our strategic vision, The Art of You, Saks Global is redefining luxury shopping by offering each customer a personalized experience that is unmistakably their own. By leveraging the most comprehensive luxury customer data platform in North America, cutting-edge technology, and strong partnerships with the world's most esteemed brands, Saks Global is shaping the future of luxury retail. Saks Global Properties & Investments includes Saks Fifth Avenue and Neiman Marcus flagship properties and represents nearly 13 million square feet of prime U.S. real estate holdings and investments in luxury markets. On Jan. 13, 2026, and Jan. 14, 2026, Saks Global Enterprises, LLC and 112 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 26-90103). The jointly administered cases are pending before the Honorable Alfredo R. Perez. Willkie Farr & Gallagher LLP and Haynes and Boone, LLP are serving as legal counsel, PJT Partners LP is serving as an investmentbanker, Berkeley Research Group is serving as the financial advisor, and C Street Advisory Group is serving as a strategic communications advisor to the Company. Stretto is the claim agent. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel, Lazard Freres & Co, LLC is serving as investment banker, FTI Consulting, Inc. is serving as financial advisor, and Kekst and Company, Inc., is serving as a strategic communications advisor toan ad hoc group of debt holders. Hilco Global Professional Services, LLC, is the real property advisor to the Ad Hoc Group. Bank of America, N.A., is the administrative agent and collateral agent under the $1.5 billion asset-based revolving credit facility. U.S. Bank Trust Company, National Association, is the administrative agent and collateral agent under the $2.56 billion SGUS DIP Facility, a term loan facility with new money and roll up components. U.S. Bank is also the agent under the $1.75 billion OpCo DIP Facility, a term loan facility to be used for refinancing existing debt. Barclays Bank, PLC serves as the fronting lender of the SGUS First Out DIP Loans. It is advised by Dentons US LLP. Otterbourg P.C., Morgan, Lewis & Bockius LLP, and Norton Rose Fulbright US LLP serves as counsel to the ABL DIP Agent; M3 Advisory Partners, LP, is the financial advisor to the ABL DIP Agent; and Great American serves as its inventory valuation consultant. Seward & Kissel LLP serves as counsel to the SGUS DIP Agent. On January 27, 2026, the U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. SHAWNEE OIL: Midfirst Wants Aurora Management's Baker as Receiver ----------------------------------------------------------------- Midfirst Bank filed a motion with the U.S. District Court for the Southern District of Illinois seeking the appointment of David Baker, the co-founder, managing partner and head of restructuring and bankruptcy for Aurora Management Partner, as receiver for Shawnee Oil Company LLC, Shawnee Exploration Partners LLC and Shawnee Exploration Partners 2 LLC. Lender filed its Verified Complaint on April 23, 2026, in the Circuit Court of the Second Judicial Circuit, White County, Illinois, to enforce its rights and exercise remedies under the Loan Documents and applicable law based on Defendants' failure to comply with their loan obligations. The Loans have been in maturity default since April 29, 2025, and Defendants have not made any payments on the Loan since October 2024. Defendants owe at least $12,285,373.09 in principal and interest (but excluding interest at the Default Rate) to Lender under the Loan plus interest at the Default Rate, costs, expenses, and fees, including attorneys' fees, and other amounts which continue to accrue, which amounts are secured by liens on substantially all of Defendants' assets. Lender has discovered that Defendants have transferred funds constituting Lender's cash collateral out of their accounts with Lender to separate financial institutions outside of Lender's control in violation of the Loan Documents. Moreover, in November 2025, Guarantors transferred their ownership interests in Borrower to a third party, Emergent Energy PCC Limited, an Isle of Man entity. It turned out that Emergent's new principal, James Reuben Burton Jr., is a felon who was convicted of committing financial crimes. Lender had already expressly refused to transact with Burton when Guarantors proposed a transfer involving him earlier that year. Due to numerous and uncontested defaults, Lender seeks appointment of a receiver over Defendants and their assets pursuant to this Court's equitable powers, arguing that Defendants consented in the Loan Documents to the appointment of a receiver over their operations and assets upon any Event of Default. Imposing the bargained-for remedy is plainly appropriate. Lender notes Aurora Management Partners' David Baker has decades of experience acting as a financial advisor, consultant or receiver, specific experience involving distressed companies in the oil and gas industry, and has acted as a receiver over business entities in both state and federal court, including in Illinois. Borrower and Lender are parties to a Loan Agreement, dated as of April 29, 2022. Pursuant to the Loan Agreement, as amended, Lender made revolving loans available to Borrower in an original Maximum Principal Amount equal to the lesser of $35,000,000 and a Borrowing Base determined by Borrower's proven oil and gas reserves (such loans, together with any other loans extended to Borrower under the Loan Agreement, the Loans). Lender seeks the appointment of a receiver to: (i) work to marshal Defendants' assets and stabilize their businesses, (ii) assure creditors that an independent officer of the Court is maintaining operations to oversee a liquidation or sale of the business, (iii) ensure that Defendants' assets are solely being used to support their operations, (iv) carry out an organized sale or liquidation of Defendants' assets that creates recoveries for Lender, and (v) take such other actions as are appropriate to administer the receivership estate. To guarantee payment and performance of the Loans, Guarantors entered into the Continuing Guaranties dated as of April 29, 2022. Pursuant to the Guaranties, each Guarantor absolutely, unconditionally and irrevocably guaranteed and agreed to pay and perform the obligations under the Loan Documents. To secure Defendants' obligations under the Loan Documents, Lender and Defendants entered into the Security Agreement and Assignment, dated as of April 29, 2022, pursuant to which each Defendant assigned and granted to Lender a security interest in all of their right, title and interest in, to and under all of Defendants' then existing and after-acquired personal property and all proceeds and products. The Security Agreement, the Mortgages and the security interests granted therein secure the prompt and complete payment and performance of all the Defendants’ obligations under the Loan Documents. Defendants have caused several Events of Default under the Loan Documents that are continuing. These include Borrower's failure to make any payments of accrued unpaid interest on the Principal Amount since October 15, 2024, and Borrower's failure to pay in full the Principal Amount together with all unpaid, accrued interest and all other Indebtedness on the Loan Agreement's Stated Maturity Date of April 29, 2025. As of April 17, 2026, at least $12,285,373.09 is due and owing by Defendants to Lender in respect of principal and interest under the Loan Agreement. Defendants have also violated several covenants in the Loan Agreement, causing further Events of Default, including Borrower's failure to maintain various financial covenants and Borrower's violation of the covenant to maintain all of its deposit and operating accounts with Lender by moving more than $550,000 of funds constituting Lender's cash collateral from accounts with Lender to accounts outside of Lender's control at People's Bank since October 2025, including over $363,000 being transferred by Borrower via checks written out to itself since April 15, 2026. On April 23, 2026, Lender commenced this civil action against Defendants in the Circuit Court of the Second Judicial Circuit, White County, Illinois. Shortly thereafter, on April 24, 2026, Lender filed a motion to appoint a receiver over Defendants and their assets. On May 1, 2026, Borrower filed a notice of removal, removing the action to this Court. All defendants have been served or have waived service in compliance with applicable federal law. At the time of removal, Lender's receiver motion was still pending before the state court. Federal courts have an inherent equitable power to appoint a receiver to manage a defendant's assets during the pendency of litigation. In the exercise of their broad discretion to decide whether to appoint a receiver over assets in dispute in litigation, district courts consider the non-exclusive factors: (1) fraudulent conduct on the part of the defendant; (2) whether there is imminent danger of the property being lost, diminished in value or squandered; (3) the inadequacy of the available legal remedies; (4) the probability that harm to a plaintiff would be greater than the injury to the parties opposing appointment; and (5) the plaintiff’s probable success in the action and the possibility of irreparable injury to their interest in the property. Appointment of a receiver is appropriate because Defendants agreed to the appointment of a receiver upon default. Moreover, in the Loan Agreement, Defendants waived and released, to the extent permitted by the Governing Law, the rights to any matter to defeat, reduce, or affect Lender's rights under the terms of the Loan Documents to sell the Collateral or collect the full Indebtedness. Defendants cannot dispute the numerous outstanding Events of Default. Defendants have therefore consented to the appointment of a receiver and have prospectively waived any arguments in opposition to such appointment. As Defendants prospectively waived their rights to notice and a hearing, the Court may appoint a receiver at Lender's request forthwith. Appointment of a receiver over Defendants and their assets is justified here pursuant to federal law because the Collateral is in imminent danger of "being lost, diminished in value, or squandered," and there is improper conduct by Defendants and their affiliates that may be fraudulent. Fraudulent conduct is only one of several factors a court may consider. According to Lender, its Collateral is in imminent danger of being lost, diminished in value and squandered because Defendants are insolvent and are not paying their debts as they become due. Courts routinely find that failure to pay debts as they become due demonstrates imminent danger of loss of collateral. Defendants failed to repay Lender when the Loan matured on April 29, 2025 and thereafter, and have not made any payments on the Loans since October 2024, despite repeated demands from Lender. Moreover, Defendants have consistently failed to pay amounts to which Lender is entitled. This factor is therefore satisfied. Second, there is additional danger that Defendants' assets will be dissipated without appointment of a receiver because of Defendants' improper transfers of Collateral to avoid their loan obligations and Burton's felony conviction for financial crimes. Defendants' assets are thus in imminent danger of loss or dissipation, as Borrower is actively putting Lender’s cash collateral beyond its control. Burton stands convicted of serious financial crimes, including money laundering, wire fraud and an illegal investment scheme, and has failed to provide Lender with adequate information. Lender has well-founded concerns about Holdings’ management, its ability to legally operate the assets and whether it is adequately capitalized. Therefore, appointment of a receiver is necessary to recover and preserve the assets and ensure that the business is operated legally and in a manner that maximizes value for Defendants’ creditors. The third and fifth factors that courts consider weigh heavily in favor of appointment of a receiver over Defendants and their assets. Courts deem legal remedies to be inadequate in situations where a secured creditor seeks a remedy for the injury that would result if defendants deplete the assets that secure the debt before the creditor is able to obtain a judgment. Where courts find that an alternative legal remedy is inadequate, they also find that a plaintiff may be irreparably harmed. Additionally, appointing a receiver would serve Lender's interests because the receiver would be a neutral third party who would make decisions to maximize the value of Defendant's business. About Shawnee Oil Company LLC Shawnee Oil Company LLC is a Delaware-based oil company. Several Shawnee entities are facing a receivership case captioned as Midfirst Bank v. Shawnee Oil Company LLC, Shawnee Exploration Partners LLC and Shawnee Exploration Partners 2 LLC, Case No. 3:26-cv-00567 (S.D. Ill.), before the Hon. David W. Dugan. The case was filed on May 1, 2026. Shawnee Oil Company LLC is represented by: Lauren M. Loew, Esq. Foley & Lardner LLP Tel: (312) 832-4500 E-mail: lloew@foley.com Counsel for MidFirst Bank: Terence G. Banich, Esq. Paul T. Musser, Esq. Alexander L. Norman, Esq. Nico S. Colombo, Esq. KATTEN MUCHIN ROSENMAN LLP 525 W. Monroe St. Chicago, IL 60661-3693 Tel: (312) 902-5200 Fax: (312) 902-1061 E-mail: paul.musser@katten.com terence.banich@katten.com alex.norman@katten.com nico.colombo@katten.com - and – Stephen G. Sawyer, Esq. THE SAWYER LAW OFFICE P.O. Box 789 Mount Carmel, IL 62863 Tel: (618) 262-5656 E-mail: sawyerlawoffice@gmail.com SLX - I DRIVE: Court OKs Interim DIP Loan From Bay Point Advisors ----------------------------------------------------------------- SLX - I Drive, LLC received interim approval from the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, to obtain post-petition financing to get through bankruptcy. The financing is a $2.7 million debtor-in-possession loan from Bay Point Advisors, LLC on a superpriority, priming lien basis. The Debtor intends to use the DIP loan to cover critical expenses according to a 13-week budget. The loan carries a 15% interest rate, a 2% origination fee, a 1% exit fee, a $405,000 interest reserve, a $15,000 administrative deposit, and a profit share of $1 million payable to Bay Point upon the sale or refinance of the Debtor's 272-unit multifamily project in Orlando, Florida, which is expected to occur post-plan confirmation. The DIP loan would be secured by all of the Debtor's assets, including a first-priority mortgage on its real property in Orlando. The Debtor is developing the Orlando site into a 272-unit multifamily project with commercial space, which it estimates will have a completed value of approximately $16.45 million. The project, however, remains stalled, and the Debtor is experiencing significant financial distress, with no operating revenue, limited cash reserves, and substantial prepetition debt. Its primary secured obligation is owed to Benworth Capital Partners PR, LLC, which holds a mortgage claim of approximately $4.6 million and asserts a claim exceeding $6.4 million including accrued interest and fees. The Debtor also faces more than $200,000 in unpaid property taxes, approximately $888,000 in unsecured debt, and roughly $750,000 in insider claims. June 10 Interim DIP Order Under the interim order, the Debtor may draw on the DIP loan between June 10 and June 23 solely for specified purposes, including (i) $2,000 in fence rental and insurance costs; (ii) a $54,000 origination fee (2% of the $2.7 million loan); (iii) reasonable and documented closing costs, including taxes and recording fees; (iv) a $405,000 interest reserve covering the first 12 months of interest payments; (v) a $15,000 administrative deposit due at closing; and (vi) a $50,000 adequate protection payment to Benworth. As protection, Bay Point was granted a first priority security interest in and lien on all DIP collateral that is not otherwise subject to a valid security interest or lien; and a senior priming security interest in and lien on the DIP collateral, senior to all pre-petition security interests and liens solely to secure the obligations authorized under the interim order and funded during the interim period. Upon the occurrence of an event of default, and subject to 14 business days' prior written notice, Bay Point may declare all DIP obligations to be immediately due and payable; and terminate any further obligation to advance funds. The interim DIP order is available at http://bankrupt.com/misc/SLXIDrive_IDIPOrder.pdf The court scheduled a final hearing for June 23 and set a June 19 deadline for filing objections. SLX - I Drive said that it attempted to obtain financing from more than 25 lenders over the past year, including HUD construction financing and potential refinancing or buyout options, but no alternatives were viable -- particularly because lenders were unwilling to proceed due to ownership complications involving a 50% member who is facing unrelated criminal charges. The only available financing option is the DIP facility from Bay Point, negotiated at arm's length and presented as the sole realistic means to preserve the estate. Bay Point, as DIP lender, may be reached through: Mitchell Dagley Bay Point Advisors, LLC 3050 Peachtree Road, Suite 740 Atlanta, GA 30305 Phone: 404.963.6031 mitchelldagleybaypointadvisors.com About Slx - I Drive LLC Slx - I Drive, LLC is a Florida-based business involved in commercial operations and property-related activities connected to the International Drive corridor. The company manages business and operational assets associated with hospitality and retail-oriented developments. Slx - I Drive, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-03078) on April 28, 2026. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities in the same range. The case is pending in the Middle District of Florida bankruptcy court. Judge Grace E. Robson oversees the case. The Debtor is represented by Melissa A. Youngman, Esq. of Winter Park Estate Plans & Reorgs. SMITTY'S LAND: Hires Allen Jones & Giles PLC as Attorney -------------------------------------------------------- Smitty's Land V, LLC seeks approval from the U.S. Bankruptcy Court for the District of Allen, Jones & Giles, PLC as attorney. The firm's services include: a. providing the Debtor with legal advice with respect to its reorganization; b. representing the Debtor in connection with negotiations involving secured and unsecured creditors; c. representing the Debtor at hearings set by the Court in Debtor's bankruptcy case; and d. preparing necessary applications, motions, answers, orders, reports or other legal papers necessary to assist in the Debtor's reorganization. The firm will be paid at these rates: Thomas H. Allen, Member $550 per hour David B. Nelson, Associate $425 per hour Ryan M. Deutsch, Associate $350 per hour Zachary Phillips, Associate $325 per hour Legal Assistants and Law Clerks $205–$235 per hour The firm received a retainer in the amount of $30,000. In addition, the firm will seek reimbursement for its out-of-pocket expenses. David B. Nelson, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: David B. Nelson, Esq. Allen, Jones & Giles, PLC 1850 N. Central Ave., Suite 1025 Phoenix, AZ 85004 Tel: (602) 256-6000 Fax: (602) 252-4712 Email: dnelson@bkfirmaz.com About Smitty's Land V, LLC Smitty's Land V, LLC is a single-asset real estate company whose main asset is a commercial property at 1515 E. Buckeye Road in Phoenix, Arizona. Smitty'S Land V, LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D., AZ Case No. 26-05233) on May 27, 2026. In its petition, the Debtor reports estimated assets between $1 million to $10 million and estimated liabilities between $1 million to $10 million. Honorable Bankruptcy Judge Hon. Madeleine C Wanslee handles the case. The Debtor is represented by David B. Nelson, Esq. of ALLEN, JONES & GILES, PLC. SPARHAWK LLC: Gets Interim OK to Use Cash Collateral Thru June 20 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Wisconsin entered an agreed interim order authorizing the Chapter 11 Trustee Matthew Brash for Sparhawk, LLC and its affiliated debtors to use WoodTrust Bank's cash collateral and granting the bank adequate protection. The trustee may use cash collateral through June 20 in accordance with an approved budget and subject to variance limits. To protect WoodTrust's interests, the court granted the lender replacement liens and a first-priority post-petition lien on the debtors' cash collateral and related proceeds, subject to certain senior liens and a carve-out for court fees, U.S. Trustee fees, professional fees, trustee compensation, approved sale expenses, and any WARN Act administrative claims. The order also establishes a 60-day challenge period during which parties in interest, other than the Trustee, may contest the validity, extent, priority, or enforceability of WoodTrust's liens and claims. As part of the adequate protection package, the Trustee must make monthly payments of $200,000 to WoodTrust Bank, beginning within three business days of entry of the order and continuing on the 20th day of each month thereafter. The Trustee is also required to maintain insurance, pay post-petition taxes, keep bank accounts at WoodTrust, provide weekly financial reporting, and preserve collateral values while operating the businesses. The order further requires the Trustee to pursue asset-sale efforts, including filing sale-related motions by June 20, commencing a sale or liquidation process by July 1, and obtaining court approval for the sale of substantially all assets by August 31, 2026. The Trustee’s authority to use cash collateral is scheduled to terminate on September 1, 2026, unless extended by agreement or court order. A final hearing on the cash collateral motion is scheduled for June 16 and objections to entry of a final order must be filed by June 12. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/ZxSeh from PacerMonitor.com. WoodTrust is owed approximately $10.4 million under various loan agreements and holds security interests in substantially all of the debtors' assets, including accounts, inventory, equipment, deposit accounts, contract rights, and certain real estate. The order permits the Trustee to continue operating the businesses using the lender's cash collateral. About Sparhawk LLC Sparhawk LLC and affiliated entities -- Sparhawk Trucking, Inc., Sparhawk Properties, LLC; and Sparhaw Truck and Trailer, Inc. -- support trucking operations, equipment management and property holdings related to the group's transportation activities. Founded in 1981, the Sparhawk group operates within the general freight trucking industry in the United States. Sparhawk and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wis. Lead Case No.26-10527) on March 13, 2026. In the petition signed by Mark A. Sparhawk, sole member, Sparhawk disclosed up to $10 million in both assets and liabilities. Judge Catherine J Furay oversees the cases. Jerome R. Kerkman, Esq., and Nicholas W. Kerkman, Esq., at Kerkman & Dunn, represent the Debtors as legal counsel. Matthew Brash is appointed as trustee appointed in these Chapter 11 cases. The trustee tapped Swanson Sweet LLP as counsel and Newpoint Advisors Corporation as financial advisor. SPARTAN AUTOMOTIVE: Seeks 90-Day Extension of Plan Filing Deadline ------------------------------------------------------------------ Spartan Automotive Technology Group Corporation f/k/a Spartan Automotive Technology Providers, Inc. asked the U.S. Bankruptcy Court for the Middle District of Florida to extend its exclusivity period to file a plan of reorganization and disclosure statement for additional ninety days. Spartan Automotive has two shareholders, Lawrence Jones and Peter Hoa Nguyen, each owning 50% shares of Spartan. The Debtor explains that the company's largest creditor, VBI Group Inc., is in the process of acquiring Mr. Nguyen's shares of Spartan Automotive from the bankruptcy estate of Peter and Thi Nguyen. The bankruptcy court has approved the sale, however, apparently the sale has not been fully consummated. The Debtor states that the company's other shareholder, Lawrence Jones, and VBI Group LLC are in the process of negotiating a settlement, pursuant to which VBI Group will be acquiring Mr. Jones' interest in Spartan Automotive. Until the settlement negotiations are concluded, a meaningful Plan of Reorganization cannot be proposed. The Debtor's Counsel: Rehan N. Khawaja, Esq. BANKRUPTCY LAW OFFICES OF REHAN N. KHAWAJA 817 North Main Street Jacksonville, FL 32202 Tel: (904) 355-8055 Fax: (904) 355-8058 E-mail: khawaja@fla-bankruptcy.com About Spartan Automotive Technology Group Spartan Automotive Technology Group Corporation f/k/a Spartan Automotive Technology Providers, Inc. provides technology solutions for automotive, RV, and powersports dealerships. Its offerings include GPS-based vehicle recovery, inventory tracking, and tools aimed at improving revenue, operational efficiency, and customer retention. The Company combines industry expertise with a focus on simplicity and customer support, delivering its products across the automotive retail sector from its base in Jacksonville, Florida. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-02254) on July 4, 2025, with $605,261 in assets and $16,941,884 in liabilities. Lawrence A. Jones, director/president, signed the petition. Judge Jacob A. Brown presides over the case. Rehan N. Khawaja, Esq. at BANKRUPTCY LAW OFFICES OF REHAN N. KHAWAJA represents the Debtor as legal counsel. SPIRIT AVIATION: Cohen Weiss Represents ALPA, IAM and TWU 570 ------------------------------------------------------------- In the Chapter 11 bankruptcy cases of Spirit Aviation Holdings, Inc. and its debtor-affiliates, Cohen, Weiss and Simon LLP filed with the United States Bankruptcy Court for the Southern District of New York an Amended Verified Statement pursuant to Bankruptcy Rule 2019 to inform the Court that the firm represents these Creditors: A. Air Line Pilots Association (ALPA) B. International Association of Machinists and Aerospace Workers (IAM) C. Transport Workers Union of America Local 570 (TWU Local 570) ALPA, the IAM, and TWU Local 570 have claims against certain of the Debtors. These claims arise from obligations of the Debtors under ALPA, IAM, and TWU Local 570 collective bargaining agreements. The claims asserted by ALPA, the IAM, and TWU Local 570 arose both before and during the one-year period before the filing of the above-referenced cases. CWS was engaged to represent ALPA in the Chapter 11 cases in September 2025. CWS was engaged to represent the IAM in the Chapter 11 cases in May 2026. CWS was engaged to represent TWU Local 570 in the Chapter 11 cases in June 2026. The engagements of ALPA and the IAM were initiated through the legal departments of the respective unions. The engagement of TWU Local 570 was initiated through outside counsel to the union. Upon information and belief, CWS has no claims or interests against any of the Debtors. CWS reserves the right to amend this Verified Statement. Attorneys for Creditors Air Line Pilots Association, the International Association of Machinists and Aerospace Workers, and Transport Workers Union of America Local 570: Richard M. Seltzer, Esq. Hanan B. Kolko, Esq. Matthew E. Stolz, Esq. 909 Third Avenue, 12th Floor New York, NY 10022 Tel: (212) 356-0219 E-mail: rselzter@cwsny.com About Spirit Aviation Holdings Inc. Spirit Aviation Holdings, Inc. and its subsidiaries operate Spirit Airlines is a U.S.-based low-cost carrier providing air transportation services across the United States, Latin America, and the Caribbean. They employ approximately 25,000 direct employees and independent contractors. Spirit Aviation Holdings and its subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. N.Y. Lead Case No. 25-11897) on August 29, 2025. In the petition signed by Frederick Cromer, authorized signatory, Spirit Aviation Holdings disclosed $8,576,287,000 in assets and $8,096,842,000 in liabilities as of June 30, 2025. Judge Sean H. Lane oversees the cases. The Debtors tapped Davis Polk & Wardwell, LLP, as bankruptcy counsel; PJT Partners LP as investment banker; FTI Consulting, Inc. as restructuring, fleet and communications advisor; Debevoise & Plimpton, LLP as fleet counsel; Morris, Nichols, Arsht & Tunnell, LLP as conflicts counsel, and Ernst & Young, LLP as its audit and tax services provider. Epiq Corporate Restructuring, LLC is the claims, noticing, solicitation and administrative agent. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Debtors’ Chapter 11 cases. The committee tapped Willkie Farr & Gallagher, LLP as legal counsel; Alton Aviation Consultancy, LLC as specialized aviation advisor; Jefferies. LLC as investment banker; and AlixPartners, LLP as financial advisor. Judge Lane approved the appointment of Marc Heimowitz of Coda Advisory Group, LLC as examiner. The Examiner hired Glenn Agre Bergman & Fuentes LLP as counsel; and M3 Advisory Partners, LP as financial advisor. The Air Line Pilots Association, the International Association of Machinists and Aerospace Workers and Transport Workers Union of America Local 570 (TWU Local 570) are represented by Cohen, Weiss and Simon LLP. * * * In a statement May 2, 2026, CEO Dave Davis said the airline needed hundreds of millions of dollars in additional liquidity to continue operating. He said that funding was not available and could not be secured from external sources. Having reached the limits of its financing options, the company was left with no alternative but to wind down its business. STILLWATER HOLDINGS: Hires Joseph W. Dicker P.A. as Counsel ----------------------------------------------------------- Stillwater Holdings, LLC seeks approval from the U.S. Bankruptcy Court for the District of Minnesota to employ Joseph W. Dicker, P.A. as counsel. The firm will provide these services: a. give advice with respect to the obligations of the Debtor, and prepare schedules and pleadings necessary to meet those obligations; b. represent the Debtor in connection with negotiations of agreements and treatment under a plan of reorganization; c. prepare a plan of reorganization and review and analyze claims; and d. prosecute any claim objections, if appropriate, and assist the Debtor in the administration of the estate. The firm will be paid at the rate of $650 per hour. The firm received a retainer in the amount of $16,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Joseph W. Dicker, Esq., 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: Joseph W. Dicker, Esq. Joseph W. Dicker, P.A. 1406 West Lake Street, Suite 209 Minneapolis, MN 55408 Tel: (612) 444-9650 Email: joe@joedickerlaw.com About Stillwater Holdings LLC Stillwater Holdings, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Minn. Case No. 26-31580) on May 13, 2026, with $50,001 to $100,000 in assets. Judge William J. Fisher presides over the case. Joseph W. Dicker, Esq., at Joseph W. Dicker PA represents the Debtor as legal counsel. STUCKEY PREMIER: Gets OK to Use Cash Collateral Until June 30 ------------------------------------------------------------- Stuckey Premier Enterprises, LLC received second interim approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina, New Bern Division, to use cash collateral through June 30. Under the second interim order, the Debtor is authorized to use cash collateral pursuant to an approved budget covering the period from June 1 to June 30, subject to a 10% variance per line item. The budget shows projected receipts of $44,000 against expenses of ($41,493), including payroll ($12,800), Sysco supplies ($12,000), rent ($4,168), taxes ($3,300), and other operating costs. This results in an estimated positive cash balance of $13,351.00, which supports the feasibility of continued operations. Creditors including The Huntington National Bank (as assignee of TCF Equipment Finance) and First Internet Bank of Indiana (as assignee of ApplePie Capital), may hold security interests in its operating revenues and deposit accounts based on UCC-1 filings, though the Debtor disputes or questions some of these obligations and includes them out of caution. As adequate protection, the liens held by secured creditors extend to post-petition assets notwithstanding Bankruptcy Code section 552. In addition, the interim order requires the Debtor to remain current on all post-petition taxes and prohibits asset transfers outside the ordinary course of business without creditor consent or court approval. The order is available at https://shorturl.at/NFbEl The next hearing is scheduled for June 30. About Stuckey Premier Enterprises LLC Stuckey Premier Enterprises, LLC operates a single Jimmy John's restaurant in Goldsboro, North Carolina. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 26-02108-5-JNC) on May 8, 2026. In the petition signed by Thomas Stuckey, member/manager, the Debtor disclosed up to $100,000 in assets and up to $50,000 in liabilities. Judge Joseph N. Callaway oversees the case. George Mason Oliver, Esq., at the Law Offices of George Oliver, PLLC, represents the Debtor as legal counsel. SUMMER FUN: Gets Interim OK to Use Cash Collateral -------------------------------------------------- The U.S. Bankruptcy Administrator for the Southern District of Alabama issued an interim order authorizing Summer Fun Pools Inc. to use cash collateral. The court authorized the Debtor to use cash collateral only in accordance with its approved four-week interim budget. The Debtor is not allowed to exceed any budget line item by more than 15%, and no variance is permitted for adequate protection payments, insider compensation, professional fees, non-ordinary-course expenses, or pre-petition claims without Practical Pools & Ponds, LLC's written consent or further court approval. The parties are also required to work together to develop a 13-week cash collateral budget before the final hearing. The court recognized Practical's secured claim of $56,801.33 and granted it monthly adequate protection payments of $1,500, beginning this month. Practical will also receive automatically perfected replacement liens on all post-petition assets and proceeds of the Debtor, with the same validity, priority, and enforceability as its pre-petition liens. Additional safeguards include monthly financial reporting and insurance coverage. If the adequate protection granted proves insufficient, Practical may assert a superpriority administrative expense claim under Section 507(b), subject to a carveout for court fees, Subchapter V trustee expenses, and approved professional fees. The interim order does not determine final plan treatment or claim issues, and all parties retain their rights to seek modifications or additional relief as the bankruptcy case progresses. The order is available at http://bankrupt.com/misc/SummerFun_ICCOrder.pdf About Summer Fun Pools Inc. Summer Fun Pools, Inc., also known as Southern Tide Pools, filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Ala. Case No. 26-11395) on May 14, 2026, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Judge Henry A. Callaway presides over the case. Anthony B. Bush, Esq., at The Bush Law Firm, LLC represents the Debtor as bankruptcy counsel. TRI CITY HOTELS: Gets Final OK to Use Cash Collateral ----------------------------------------------------- Tri City Hotels, LLC received final approval from the U.S. Bankruptcy Court for the Northern District of Georgia, Newnan Division, to use cash collateral to fund operations. The court authorized the Debtor to use cash collateral in accordance with a budget covering May through October, while also permitting payments authorized by separate court orders even if those amounts exceed budgeted figures. As adequate protection, the court granted the lenders and any other secured creditors replacement liens on post-petition property of the same nature as their pre-petition collateral, but only to the extent of any decline in the value of the cash collateral. These adequate protection liens automatically became valid and perfected upon entry of the order and expressly exclude proceeds from Chapter 5 avoidance actions. The order does not determine the validity, extent, or priority of any lender's alleged liens or security interests. All parties retain their rights to challenge claims or seek modifications to the order. A copy of the court's order and the Debtor's budget is available at https://shorturl.at/uM9jL from PacerMonitor.com. Tri City Hotels owes substantial secured debt to Commonwealth Business Bank, totaling nearly $5 million across two loans, both secured by its assets and real property. Because the lender may claim an interest in the hotel's revenue as cash collateral, the Bankruptcy Code requires either the lender's consent or court approval for its use. The Debtor owns and operates the La Quinta Inn & Suites in Union City, Georgia, and had significantly improved revenues after acquiring the property in 2021. However, a series of setbacks in 2025, most notably a temporary elevator outage that led to cancellations and negative reviews, caused a sharp drop in revenue. This financial strain prevented the Debtor from paying franchise fees to Wyndham, resulting in restrictions on its access to major online booking platforms, which further reduced income. Although the Debtor resolved its dispute with Wyndham in early 2026 and bookings began to recover, it had already fallen behind on debt obligations, prompting the Chapter 11 filing to reorganize its finances. About Tri City Hotels LLC Tri City Hotels, LLC owns and operates a La Quinta Inn & Suites in Union City, Georgia. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 26-10407) on March 13, 2026. In the petition signed by Nikita Patel, managing member, the Debtor disclosed up to $10 million in both assets and liabilities. William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC, represents the Debtor as legal counsel. TWENTY EIGHT: Unsecureds Will Get 10% of Claims over 48 Months -------------------------------------------------------------- Twenty Eight Hundred Lafayette, Inc. filed with the U.S. Bankruptcy Court for the District of New Hampshire a Disclosure Statement pertaining to Plan of Reorganization dated May 29, 2026. The Debtor owns and operates two restaurants known as the Beach Plum restaurants, one located in Portsmouth, New Hampshire and the second located in Epping, New Hampshire. The Debtor is wholly owned by Robert Lee, who is the President and the sole shareholder. The Debtor owns real estate in the form of the building housing the Beach Plum restaurant located at 3 Brickyard Square, Epping, NH 03042. Although the Debtor does not own the underlying land, the land leased building has a fair market value of $420,000.00 based on an appraisal by Rockland Trust f/k/a Enterprise Bank & Trust. The Disclosure Statement and the Plan under Chapter 11 of the Code propose to address claims of creditors from ongoing operation of the Debtor's business, providing payment in full of equipment lien holders and some secured lien holders. Any quarterly fees due the US Trustee (Class 1) will be paid in accordance with Section 1129(a)(12) of the Bankruptcy Code. The quarterly fees due the US Trustee will be dependent upon actual and constructive cash disbursements made during the Chapter 11. As of the date of filing this Disclosure Statement, the Office of the US Trustee is owed approximately $30,000.00. For this reason, the fee to be paid to the US Trustee in Class 1 states $30,000.00 approximately as they are estimated. The unsecured creditors in Class 3 will be paid a ten percent dividend, with the first payment to be made within thirty days of the Effective Date of confirmation. The secured creditors in Class 2 consisting of the claims of Enterprise Bank & Trust n/k/a Rockland Trust, NH Department of Revenue Administration, Rockingham Economic Development Corp., and the SBA, will continue to be paid through monthly installments in accordance with their loan documents until paid in full. The creditors in this class will retain their secured position in the Debtor's equipment and assets. The Class 5 claims will be paid in full over the term of the Debtor's plan, with the first payment to be made within thirty days of the Effective Date of confirmation of the plan. Class 3 includes all General Unsecured Creditors and Claims, including all those creditors identified in Exhibit A and the secured creditors whose secured claims are being crammed down. General Unsecured Claims are not secured by property of the Estate and are not entitled to priority under Section 507(a) of the Code. The unsecured claims total $2,643.511.90. Creditors in Class 3 will receive dividend payments with the first payment to be made within thirty days of confirmation of the plan. Each unsecured creditor will receive a dividend payment of ten percent of its claim payable monthly over the 48-month life of the plan. The monthly dividend payment will be $5,507.32. The total dividend payment will be in the approximate amount of $264,351.19. This Class is impaired. The Equity Interest holder is the owner and principal of the Debtor, Robert Lee. He will retain his 100% ownership interest in the Debtor. The principal will retain responsibility for any personal guarantee associated with any claim of this Debtor; however, collection actions for the personal guarantee will be stayed until the plan is completed. The Debtor will fund a Plan from income earned from its two restaurant locations. The Debtor expects that General Unsecured Creditors will receive a dividend of ten percent, depending upon the amount of the holders of allowed General Unsecured Claims. The payment will be paid to unsecured creditors over a 48-month plan. A full-text copy of the Disclosure Statement dated May 29, 2026 is available at https://urlcurt.com/u?l=fWuSYo from PacerMonitor.com at no charge. Counsel to the Debtor: Eleanor Wm. Dahar, Esq. Victor W. Dahar, PA 20 Merrimack Street Manchester, NH 03101 Telephone: (603) 622-6595 Facsimile: (603) 647-8054 Email: vdaharpa@att.net About Twenty Eight Hundred Lafayette Established in 1992, Twenty Eight Hundred Lafayette, Inc. is a seafood restaurant with locations in Epping, Portsmouth, Salem, and North Hampton (seasonal) in New Hampshire. It conducts business under the names The Beach Plum 2 Portsmouth and The Beach Plum 3 Epping. Twenty Eight Hundred Lafayette filed Chapter 11 petition (Bankr. D.N.H. Case No. 25-10046) on January 27, 2025. In its petition, the Debtor reported assets between $50,000 and $100,000 and liabilities between $1 million and $10 million. Judge Kimberly Bacher handles the case. Eleanor Wm. Dahar, Esq., at Victor W. Dahar Professional Association is the Debtor's legal counsel. Enterprise Bank & Trust, as secured creditor, is represented by: Patricia J. Ballard, Esq. Preti, Flaherty, Beliveau & Pachios, PLLP P.O. Box 1318 Concord, NH 03302-1318 (603) 410-1500 pballard@preti.com VENTURE GLOBAL: Fitch Alters Outlook on 'B+' LongTerm IDR to Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Venture Global LNG, Inc. (VGLNG)'s Long-Term Issuer Default Rating (IDR) at 'B+' and senior secured notes at 'BB' with a Recovery Rating of 'RR2'. Fitch also revised the company's Rating Outlook to Stable from Negative. Additionally, Fitch has assigned a 'BB'/'RR2' rating to VGLNG's proposed senior secured notes issuance. Proceeds from the notes will be used to redeem existing debt. The Outlook revision reflects strong tailwinds for US LNG exports, recent earnings outperformance, an expectation of higher contracted capacity in the near to intermediate term, along with a higher likelihood of favorable resolution of multiple pending arbitrations. Fitch believes that strong cashflow generation in current market conditions, availability of the revolving credit facility, and the ability to stagger capex enables the company to create a liquidity buffer should it need to pay damages resulting from adverse arbitration rulings. Key Rating Drivers Strong Near-Term Tailwinds: Displacement of production from the Middle East has strengthened demand for U.S.-produced LNG. The differential between Henry Hub (HH) and Title Transfer Facility, Europe's LNG hub, is once again projected at $12.2/MMBtu for the remainder of 2026 and $8.7/MMBtu for 2027, levels last seen when Russia's natural gas was displaced in 2022 and 2023. With VGLNG's first two projects, Venture Global Calcasieu Pass, LLC (VGCP) fully operational, and Venture Global Plaquemines LNG, LLC (VGPL in advanced stage of construction and commissioning, VGLNG is well positioned to capture these high margins from excess capacity not under long-term contracts. VGLNG is locking in some of these margins through short-term contracts, which provide greater cashflow visibility. About 84% of 2026 capacity and 77% of 2027 capacity are contracted. However, global demand can vary, and the past four years show that prices do not stay elevated for long periods. As more production comes online from other LNG facilities, Fitch expects margins to decline starting 2027 and trend towards long-term SPA contract pricing. Failure to contract additional cash flows could reduce the FCF available for VGLNG to finance future projects and meet debt obligations. High Intermittent Leverage: On a consolidated basis, leverage (total consolidated debt to consolidated EBITDA) averages about 7.5x over the forecast period through 2029 but peaks at over 9.0x in the near term under Fitch's assumptions, as higher-margin merchant cargoes decline at COD, and lower-margin SPA contract cargoes begin. Peak leverage reflects commodity risk and the company's reliance on maintaining production above nameplate capacity to keep leverage below the downgrade threshold. Fitch assumes basis differentials will decline during this period of high capex. Fitch assumes that VGLNG can preserve funds by slowing capex and partially monetizing its non-core assets. Greater scale partly offsets higher volatility in the financial profile. This is reflected in the holding company EBITDA leverage (total holding company debt divided by holding company EBITDA), which averages about 3.0x over the forecast period, under Fitch's assumptions. High Commodity Price Exposure: Fitch expects VGLNG's use of commissioning cargoes and excess-capacity revenue to partly fund future LNG plants to result in high commodity price risk. The risk stems from basis differentials across hubs rather than from a single commodity at one delivery point. Construction delays would curtail early cargo sales. Management's use of both revenue streams with short-term contracts heightens vulnerability to narrower basis differentials. Under Fitch's rating case, these commodity price-linked revenue streams account for more than 75% of total Holdco EBITDA over the next five years, with the remainder from contracted sales. Arbitration Risk is Moderating: Arbitration risk has declined after several rulings, including a settlement with Edison and the dismissal of Repsol and Shell cases. Negotiated settlements have been manageable. However, the adverse ruling in the BP contract dispute weakens VGLNG's financial and business profile. BP seeks more than $6.0 billion in damages. Two other independent arbitration proceedings seek more than $2.4 billion in aggregate. Debt-funded damages near the high end of SPA customers' claims could push consolidated leverage higher than 8.0x through 2029 and trigger a rating downgrade. Ongoing Construction Risk: VGLNG is constructing multiple complex LNG projects under an owner-led multi-contractor strategy, retaining primary responsibility for cost overruns and completion. The projects also partly rely on commissioning cargo sales to help fund construction, but this revenue can be volatile because LNG prices fluctuate. Fitch expects capex to exceed $40 billion over the next five years, including over $23 billion for CP2, VGLNG's third project, and more than $15 billion for bolt-on expansion projects. Upward rating momentum would depend on strong execution and leverage remaining within Fitch's sensitivity band. Peer Analysis VGLNG is weaker than peer Cheniere Energy, Inc. (CEI; BBB/Stable). With approximately 60mtpa of manufacturing capacity, CEI is the largest LNG producer in the U.S., considerably larger than VGLNG, which produces LNG from about 30mtpa of nameplate production capacity and has about another 30mtpa in various stages of development. CEI has greater scale, operating two seasoned projects, Sabine Pass Liquefaction, LLC (BBB+/Stable) and Cheniere Corpus Christi Holdings, LLC (BBB+/Stable). CEI's construction risk is low, with approximately 10mtpa of capacity under construction. Both VGLNG and CEI receive revenue from short-term market sales, but Fitch believes this revenue is less predictable and exposed to commodity price risk. This revenue is a much larger portion of total cash flow for VGLNG than for CEI. Both companies also have long-term SPAs with largely investment-grade counterparties, under which the cost of natural gas is passed through to customers. Additional revenue generated from excess capacity sales directly supports debt service at VGLNG, bypassing the project waterfall, a feature that CEI does not have. Debt obligations at both VGLNG and CEI are structurally subordinate project and intermediate Holdco debt. Both are subject to distribution tests that could impede distributions to the parent companies. According to Fitch's forecast, VGLNG's leverage is considerably higher than that of CEI, on a consolidated basis, averaging over 7.5x during the forecast, compared to 4.0x at CEI over the near term. Differences in construction risk, seasoned operational performance, cash flow predictability, scale, and leverage account for the difference in their respective ratings. Fitch’s Key Rating-Case Assumptions - VGCP's nameplate capacity of 10mtpa is fully contracted and generates additional liquefaction fees on the excess capacity above nameplate, which is sold under short-term contracts; - COD of both phases at VGPL stay on schedule, with no additional cost expected consistent with management's assumptions. Nameplate capacity of 20mtpa is fully contracted and generates additional liquefaction fees from excess capacity above nameplate, which is sold under short-term contracts; - Construction of the third project, CP2 is in line with management's updated expectations, at a cost of about $33 billion, and Phase I reaches COD at the beginning of 2030. The first phase of CP2 is assumed to be fully contracted during the operating period; - Projects produce 10%-20% higher volumes than nameplate capacity; - Fitch price deck informs revenue from the short-term contracts; - Expansion at CP2 and VGPL are included in Fitch's forecast; - No incremental debt issuance at the Holdco level or at the intermediate company level; - Only mandatory amortization per the provisions of the project debt; - No additional legal or regulatory impact from the arbitrations. Previously settled arbitrations are not successfully challenged; - Base interest rates reflect Fitch's Global Economic Outlook. 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', Higher), market and competitive positioning ('bb+', Moderate), diversification and asset quality ('b+', Moderate), company operational characteristics ('b+', Moderate), profitability ('b', Higher), financial structure ('b', Higher), and financial flexibility ('bb', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 30% weight for the historical year 2025, 30% for the forecast year 2026, 10% for the forecast year 2027, 10% for the forecast year 2028 and 20% for the forecast year 2029. The governance assessment of 'good' has no impact. The operating environment assessment of 'a+' has no impact. The SCP is 'b+'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B+'. Recovery Analysis Fitch evaluates the recovery profile from the Holdco's perspective, and estimate's the Holdco's going-concern EBITDA at $3.5 billion. This is more than the liquidation value, despite the high equity value retained by VGLNG in VGCP, VGPL and CP2. This is Fitch's view of the sustainable, post-reorganization EBITDA level, which underpins the Fitch's valuation of the company. Fitch calculates administrative claims at 10%, which is the standard assumption. Fitch assumes the default occurs in 2029 during a period of depressed LNG spot market pricing that lowers excess- capacity revenue. Fitch further assumes VGCP and VGPL are operational as VGLNG reorganizes, and delays occur at CP2. Under Fitch criteria, the going-concern EBITDA reflects some residual portion of the distress that causes the default. Fitch uses a 4.0x going-concern EBITDA multiple, reflecting a default occurring during construction and the effect of the construction project's complexity and scale on the reorganization. The outcome is a 'BB'/'RR2' rating for the senior secured debt. The recovery reflects the lien status of the senior notes after the redeemable preferred units at VGCP. A limited number of bankruptcies have been filed within the midstream sector. Two recent gathering and processing company bankruptcies indicate an EBITDA multiple between 5.0x and 7.0x, by Fitch's best estimates. Fitch's recent bankruptcy case study report "Energy, Power and Commodities Bankruptcies Enterprise Values and Creditor Recoveries," published in October 2024, found that the median enterprise valuation exit multiple for the 51 energy cases with sufficient data to estimate was 5.3x, with a wide range of multiples observed. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Significant weakness in global LNG prices, or a decline in spreads realized by the company, pressuring cash flow generation from early cargoes; - Holding-company-only EBITDA leverage is sustained above 5.0x or consolidated EBITDA leverage is sustained above 8.0x; - A material increase in debt that weakens the Holdco's recovery profile; - Additional adverse rulings in the first stage of the arbitrations; - An adverse ruling by the arbitrator determining on how much, if anything, BP is owed, or additional adverse rulings for further similar proceedings; - Management does not increase liquidity in advance of potential cash needs, including the possibility of a large payment to a customer under arbitration. - Any construction issues that significantly increase costs, cause delays, or result in deteriorating cash flow; - A multi-notch downgrade or financial distress of any significant SPA counterparty. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Holdco-only EBITDA leverage is expected to remain below 4.5x, supported by a policy to keep it below this level; - Consolidated leverage is expected to remain below 7.0x on a long-term basis; - A meaningful increase occurs in the share of Holdco cash flow derived from long-term contracts; - A positive rating action would require greater clarity that potential outcomes from the outstanding arbitrations are manageable. Liquidity and Debt Structure As of March 31, 2026, VGLNG's Holdco held about $1.6 billion in unrestricted cash. Fitch expects the company to maintain at least $1.5 billion to meet liquidity needs. In November 2025, VGLNG secured a $2.0 billion senior secured revolving credit facility maturing in November 2030. The facility is fully available as of March 31, 2026 and can be used to pay damages on the arbitrations, if needed. Each project has a working capital facility to support its needs, primarily natural gas purchases. As of March 31, 2026, total availability under the project working capital facilities was approximately $2.3 billion. Distributions to VGLNG from VGCP and VGPL are permitted only if DSCR exceeds 1.25x in the next and prior 12 months. For VGPL, distributions also require certain construction milestones. In April 2026, Calcasieu Funding redeemed in full the CP Funding Redeemable Preferred Units, thereby removing the requirement to settle accrued distributions on the CP Funding Preferred Units prior to distributing available cash to VGLNG or its affiliates. The CP2 Holdings EBL Facilities are subject to mandatory prepayment provisions, including prepayment upon receipt of certain net proceeds from the sale of commissioning cargos generated by the VGPL project. Issuer Profile Venture Global LNG develops, builds, and operates LNG export projects under long-term SPAs. Two of its facilities with a nameplate capacity of 30 mtpa are producing LNG, while a third with a nameplate capacity of 20 mtpa is in development. The company targets a total capacity of 85 mtpa across its portfolio. Summary of Financial Adjustments EBITDA Leverage is calculated as the ratio of VGLNG's total consolidated debt to consolidated EBITDA. Fitch also evaluates VGLNG with Holdco-only EBITDA Leverage. This metric is calculated as the ratio of Holdco-only debt to Holdco-only EBITDA. Holdco-only EBITDA is the sum (i) aggregate distributions from the opcos and (ii) EBITDA that is not part of any flow that produces opco distributions (Non-SPA EBITDA), e.g., excess capacity commercial activity, less (iii) any operating expenses at the Holdco. As per Fitch's "Corporate Hybrids Treatment and Notching Criteria," Fitch gives 50% equity credit to the cumulative redeemable perpetual preferred stock issued by VGLNG. Fitch removes from VGLNG EBITDA the net income attributable to non-controlling interests. Fitch looks at a variety of leverage calculations but features the foregoing calculations in its commentary. 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 2025 revenue-weighted Climate.VS for VGLNG in 2035 is 50 out of 100, reflecting the company's broad exposure to natural gas and the liquefaction facilities' heightened flood risk. Major transition risks arise from potential demand destruction driven by policies aimed at reducing fossil fuel use and, in the shorter term, from policies targeting greenhouse gas emissions reduction. These risks do not have a material influence on the rating, given the extended timeframe of the energy transition, the uncertainty surrounding future policy changes and how companies might respond to them. The physical risks are mitigated by robust physical infrastructure and insurance policies, while transition risks are mitigated by capacity payments due to the project even if no LNG is lifted. The Climate.VS does not influence the current rating. Any potential future impact on the rating may differ from the illustrative rating impact in the Climate.VS framework, reflecting the evolution of Fitch's assessment of the risks. 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 ----------- ------ -------- ----- Venture Global LNG, Inc. LT IDR B+ Affirmed B+ senior secured LT BB New Rating RR2 senior secured LT BB Affirmed RR2 BB preferred LT B- Affirmed RR6 B- WASTE PRO: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable ---------------------------------------------------------- Fitch Ratings has affirmed Waste Pro USA Inc.'s (WP) Long-Term Issuer Default Rating (IDR) at 'B+' with a Stable Rating Outlook. Fitch has also affirmed WP's ABL facility rating at 'BB+' with Recovery Rating of 'RR1' and senior unsecured notes at 'BB-'/'RR3'. The ratings reflect demand stability for municipal solid waste (MSW) collection, WP's multiyear contracts, diversified customer base and established position in the growing Southeastern U.S. Fitch expects that EBITDA leverage will moderately improve to about 5.0x in 2027, as management plans to deleverage following temporarily higher growth investment in 2025. Financial flexibility remains adequate, reflecting forecast EBITDA interest coverage of 2.9x, free cash flow supportive of growth and no meaningful near-term maturities. Key Rating Drivers Deleveraging Toward 5.0x: Fitch projects Waste Pro's EBITDA leverage at 5.4x in 2026 and 5.0x in 2027, down from 5.7x in 2025 on a pro forma basis for M&A and contract wins. Deleveraging is expected to be driven by earnings growth, supported by pricing above cost inflation and moderation in organic and M&A growth spending in 2026. Fitch also incorporates a modest impact from elevated fuel prices in 2026. WP's concentrated ownership poses some risk to financial policies; however, WP has no track record of leveraging distributions and its long-term priorities remain on growth. Management has committed to reducing leverage from 2025 levels, and Fitch expects WP to continue to balance growth and deleveraging priorities. Growth-linked FCF: Elevated investment levels have historically resulted in negative FCF; however, Fitch believes FCF generation before growth spending remains healthy in the mid-single-digit range as a proportion of revenue. This provides the company with optionality to manage its financial profile. Fitch expects Waste Pro to generate mildly positive FCF in 2026, assuming continued but reduced growth spending. Growth investment concerns leading to negative FCF are moderated by WP's strategy of only purchasing trucks and containers after securing contracts. Furthermore, strong visibility into the revenue and cost structure of new contracts supports a measured bidding approach. Adequate Financial Flexibility: Waste Pro's financial flexibility is supported by forecast positive FCF in 2026, ABL availability and an absence of maturities until the 2029-2030 time frame. Fitch also forecasts EBITDA interest coverage at 2.9x in 2026, consistent with 'B+' rating. Waste Pro's mix of fixed-rate debt and use of tax-exempt bonds support coverage levels. MSW and Contracts Create Stability: About 70% of revenue comes from residential and commercial waste collection, which is fairly stable through economic cycles. WP's long-term municipal contracts can stretch from five to 10 years and this, together with its ability to retain customers, also adds to earnings visibility. WP also has various risk-sharing structures to soften exposure to fuel price fluctuation. Revenue from construction and demolition is relatively more susceptible to business cycles, although long-term growth in core operating regions is backed by secular trends and population shifts that also support the construction-driven business. Business Profile Considerations: WP's ratings are not constrained by its business profile, which exhibits 'BB' characteristics. Its regional focus, smaller cash flow scale relative to investment opportunities and collection-heavy operations are key credit considerations compared to large public MSW firms. The company's geographic focus introduces region-specific competitive, regulatory or weather-related risks, although these appear manageable. Large MSW firms benefit from vertical integration with company-controlled landfill disposal that enhances cost management. However, WP's focus on disposal-neutral markets offers flexibility and reduces liability exposure. Peer Analysis Fitch compares Waste Pro with other stable and contracted services companies such as Reworld Holding Corporation (B+/Stable) and Garda World Security Corporation (GW; B+/Negative). Reworld operates a relatively entrenched network of waste-to-energy incineration facilities within disposal-constrained markets. Its market position, steady waste streams and hedged commodity exposure support Reworld's business profile despite relatively weaker credit metrics, with EBITDA leverage around 6.0x and EBITDA interest coverage in the mid-2.0x range. GW's credit profile benefits from its established market position and the stable and recurring nature of its manned guarding and cash management services. This is weighed against GW's significant growth investments in recent years and delay in realizing large contracts, which have elevated EBITDA leverage above the mid-6.0x range and pressured EBITDA interest coverage below 2.0x. Fitch’s Key Rating-Case Assumptions - Revenue grows in the mid-teens in 2026, driven by pricing, new contract wins and completed M&A contribution. Revenue growth is in the high single digits thereafter, supported by low- to mid-single-digit organic growth and supplemented by M&A; - EBITDA margin is approaching 21% in 2026 and expands by 20 bps annually thereafter, benefiting from pricing and operating efficiencies, partially offset by cost inflation and assumed margin dilution from acquisitions; - Capex around 12% of revenue in 2026, including 7% maintenance capex and 5% growth capex; - WP remains growth-oriented and continues to utilize debt funding, but is committed to managing its leverage profile, leading to EBITDA leverage in the 4.5x-5.0x range over the long term; - No material 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 (bb+, Lower), sector characteristics (bbb, Moderate), market and competitive positioning (bb, Higher), diversification and asset quality (bb-, Moderate), company operational characteristics (bbb-, Moderate), profitability (bb-, Moderate), financial structure (b, Higher), and financial flexibility (b+, Higher). - 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. - 'B+' to 'CC considerations apply in its analysis and have no impact. - The Governance assessment of 'good' has no impact. - The Operating Environment assessment of 'aa-' has no impact. - The SCP is 'b+'. To derive the Long-Term IDR: - Fitch made no adjustments to the SCP, resulting in an IDR of 'B+'. Recovery Analysis The Recovery Rating assumes that Waste Pro would be reorganized as a going concern (GC) in a bankruptcy scenario rather than liquidated. A 10% administrative claim on the enterprise value is assumed. Fitch estimates a GC EBITDA of $230 million. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise valuation. Fitch assumes a hypothetical bankruptcy scenario could come from a combination of contract losses and weaker margins stemming from intense competition and a structurally weaker pricing environment while the company contends with higher cost inflation. Fitch assumes WP will receive a GC recovery multiple of 6x. This multiple is applied to the GC EBITDA to calculate a post-reorganization enterprise value. The multiple assumption is primarily driven by the recurring demand inherent to the waste management industry and the long-term and diversified nature of contracts. The multiple also reflects the company's vulnerability due to its regional focus. It is lower than the 6.3x assigned to Reworld, which benefits from its geographically advantaged and regulatorily constrained incinerator assets. The multiple also considers Waste Pro and the larger waste companies' historical acquisition multiples. Fitch's recovery scenario assumes that the ABL is 80% drawn. The ABL receives priority above the unsecured debt in the distribution of value in the recovery waterfall. The Recovery Rating results in a 'BB+'/'RR1' rating for the ABL and 'BB-'/'RR3' for the unsecured debt. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deviation in capital allocation and financial policy leading to EBITDA leverage sustained above 5.0x; - EBITDA interest coverage sustained below 2.5x; - Reduced financial flexibility indicated by sustained negative FCF and ABL availability below 75%. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Demonstrated commitment to a credit-conscious capital allocation strategy that maintains through-the-cycle EBITDA leverage below 4.5x; - Consistently positive FCF, after growth capex. Liquidity and Debt Structure As of March 2026, WP had $182 million of liquidity, consisting of $162 million availability on the ABL and $20 million cash on hand. The company has no major maturities until the industrial revenue bonds begin to mature in 2029. The ABL matures in 2030 and the $850 million unsecured notes are due in 2033. Issuer Profile Waste Pro provides non-hazardous solid waste management services, primarily focused on collection for residential, commercial and industrial customers. The company operates across nine states in the southeastern U.S. 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 Climate.VS for 2035 for Waste Pro USA, Inc. is 50. Waste Pro's operations are fairly concentrated in Florida, exposing the company to weather-related physical risks as flooding can cause physical damage to assets such as vehicles and properties. Fitch has incorporated this geographic concentration into its diversification assessment. 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 ----------- ------ -------- ----- Waste Pro USA, Inc. LT IDR B+ Affirmed B+ senior unsecured LT BB- Affirmed RR3 BB- senior secured LT BB+ Affirmed RR1 BB+ WATLOW ELECTRIC: Moody's Rates New Secured First Lien Loans 'B1' ---------------------------------------------------------------- Moody's Ratings assigned B1 ratings to Watlow Electric Manufacturing Company's (Watlow) planned backed senior secured first lien credit facilities consisting of a $715 million term loan B maturing in 2033, a $150 million revolving credit facility and a $75 million delayed draw term loan. The existing ratings on Watlow, including the B1 corporate family rating, the B1-PD probability of default rating and B1 senior secured credit facilities rating, are not affected by the transaction. The outlook remains stable. Watlow will use the proceeds to refinance its existing term loan B which matures in March 2028, pay down the entire existing revolver balance, pay for transaction expenses and add cash to the balance sheet. The revolving credit facility will be upsized to $150 million from $122.5 million and extended to 2031 from 2027. The delayed draw term loan will expire in 24 months if unused. The transaction is leverage neutral with Moody's adjusted pro forma debt/EBITDA of approximately 4.2x as of March 31, 2026. RATINGS RATIONALE Watlow Electric Manufacturing Company's (Watlow) B1 credit ratings reflect its well-established market position as a supplier of thermal solutions to diverse end markets and particularly the semiconductor equipment sector. Moody's expects continued growth in the semiconductor sector through at least 2027. Growth will be driven by the construction of microchip foundries in the United States and investments in artificial intelligence infrastructure. Watlow also benefits from long-standing customer relationships supported by its engineering capabilities, good reputation in the market and high switching costs for customers. Challenges include Watlow's niche focus on thermal solutions and operations in a fragmented sector. The company will continue to be exposed to the cyclical semiconductor market which has previously resulted in revenue and cash flow volatility. Moody's expects debt/EBITDA will decline below 4.0x by the end of 2027 with incremental growth in earnings. The company's conservative financial policies reflect the uniquely long investment horizon of its family office ownership. In the past, the company has used free cash flow to reduce debt. Good liquidity is supported by Moody's expectations of $15 million of free cash flow in 2026. The stable outlook reflects Moody's expectations that Watlow will generate positive free cash flow and deleverage the business over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Watlow increases scale while effectively managing growth, sustains free cash flow/debt in the high single digits and sustains debt/EBITDA below 3.5x. The ratings could be downgraded if financial policies become more aggressive, liquidity worsens or if debt/EBITDA is sustained above 4.5x. The principal methodology used in these ratings was Manufacturing published in September 2025. Headquartered in St. Louis, Missouri, Watlow Electric Manufacturing Company produces highly engineered thermal technology products for diverse end markets including semiconductor manufacturing, medical, aerospace & defense, energy, heavy vehicle and general industrial. The company generated approximately $790 million in the 12-month period ending March 31, 2026. The company is owned by the Tinicum family office. WHIRLPOOL CORP: Fitch Rates Second Lien Notes 'BB-' --------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating with a Recovery Rating of 'RR4' to Whirlpool Corp.'s proposed offering of two tranches of senior secured second lien notes. The notes will be secured by a second-priority security interest in substantially all of Whirlpool's assets that will secure the obligations under the company's new ABL facility on a first-priority basis. Some of the company's assets will be excluded from the collateral, such as its domestic manufacturing facilities, shares of its subsidiaries' capital stock or its subsidiaries' debt to Whirlpool. Per Fitch's criteria, second lien debt are capped at 'RR4' for issuers with a 'BB-' Issuer Default Rating (IDR). Proceeds from the notes issuance will be used, together with borrowings under the company's new ABL facility, to repay its 1.25% senior notes due 2026, 1.1% senior notes due 2027, and borrowings under its existing unsecured revolving credit facility. Fitch has also withdrawn its 'BB-'/'RR4' rating on Whirlpool's existing $2.25 billion revolving credit facility, which will be replaced by a new ABL facility. Fitch currently rates Whirlpool's IDR at 'BB-' with a Rating Outlook of Negative. The Negative Outlook reflects a weak demand environment and the uncertainty from the ongoing conflict in Iran and its impact on consumer sentiment and cost inflation. Key Rating Drivers Further Margin Pressure: Fitch expects EBITDA margins to settle between 6% and 6.5% in 2026 and 7% and 8% in 2027, compared with 7.1% in 2025 and 7.6% in 2024. This expectation is driven by continued weakness in housing activity and repair and remodel (R&R) spending, as well as higher raw material input costs due to the longer-than-expected closure of the Strait of Hormuz amid the Iran conflict. Fitch continues to expect positive price/mix following additional announced price increases. An extended conflict that will keep the strait closed beyond July 2026 may lead to oil prices higher than Fitch's average price assumption of around USD87 per barrel (Brent) in 2026 and USD65 in 2027. This could lead to further demand headwinds and added inflation. Subdued Demand Environment: Fitch expects slight organic revenue growth in 2026, driven by substantial selling price increases as well as significant product launches in 2025. Fitch's rating case forecast anticipates single-family starts will fall to the mid-single digits, while existing home sales and repair and remodel (R&R) spending will be flat to slightly lower this year, with weaker demand for larger discretionary R&R projects. Escalating geopolitical tensions, such as the Iran conflict, pose further downside risks to this outlook through higher oil prices, renewed inflationary pressures, delayed Federal Reserve rate cuts, and mortgage rates remaining meaningfully above 6%. Persistently high borrowing costs, combined with weaker consumer sentiment, could further slow consumer spending. High Leverage: Fitch expects EBITDA leverage to be 7.0x-7.5x at YE 2026 and 5.5x-6.0x at YE 2027 due to lower margins and higher debt from the proposed notes issuance to refinance 2026 and 2027 maturities. EBITDA net leverage is forecast to be 5.0x-5.5x at YE 2026 and approach 4x at YE 2027, unchanged from Fitch's previous expectation as the company carries a higher cash balance. (CFO-capex)/debt is forecast to be 4%-5% in 2026 and 3%-4% in 2027. Fitch expects Whirlpool to be temporarily outside the EBITDA leverage negative sensitivity for the 'BB-' IDR through at least 2027. Good Financial Flexibility: Whirlpool's liquidity will improve from the notes issuance. Fitch expects Whirlpool to have cash of around USD1.8 billion at YE 2026 and around USD2 billion at YE 2027, driven partly by the common and preferred equity issuance earlier this year and FCF. Whirlpool has paused its quarterly common stock dividend, which Fitch estimates will preserve about USD225 million of cash on an annual basis. Fitch's rating case forecast assumes that common stock dividends are paused through YE 2027. Fitch expects FCF margin of 1%-2% in 2026 and 2027, assuming capex of 2.5%-3.0% of revenue 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 product 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 those of both 'BB' category issuers 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 compare favorably with these peers. Fitch’s Key Rating-Case Assumptions - Organic revenue improves slightly in 2026 and improves between 2.5% and 3.5% in 2027; - EBITDA margin of 6%-6.5% in 2026 and 7%-8% in 2027; - FCF margin of 1%-2% in 2026 and 2027; - Capex of 2.5%-3% of revenues and dividend pause through 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 ('b', Higher), and financial flexibility ('bb+', 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' has no impact. The operating environment assessment of 'a' has no impact. The SCP is 'bb-'. To derive the Long-Term 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 4.8x or EBITDA net leverage sustained above 4.3x; - (CFO-capex)/debt sustained below 4%; - FCF margins sustained below 1%. Factors that Could, Individually or Collectively, Lead to a Revision of the Outlook to Stable - Improvement in margins and cash flow, leading to EBITDA leverage at or below 4.8x or EBITDA net leverage at or below 4.3x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage sustained below 4.3x; - (CFO-capex)/debt sustained above 6%; - FCF margins above 2%. Liquidity and Debt Structure Whirlpool had good liquidity as of March 31, 2026, with USD626 million in cash and about USD3.2 billion of borrowing capacity under its revolving credit agreement, which matures in May 2027. In May 2026, the company lowered its revolver capacity to USD2.25 billion. Fitch expects the company will have cash of about USD1.8 billion at YE 2026, driven by its common and preferred equity issuances and FCF. Whirlpool expects to enter a new USD2 billion-USD2.25 billion ABL facility to replace its existing revolving credit agreement. The amount is consistent with the reduced revolver capacity and aligns with Whirlpool's anticipated liquidity needs following the divestiture of its European operations and the sale of a majority stake in Whirlpool of India. The proposed notes issuance addresses the company's near to intermediate term maturities, including EUR500 million of senior notes maturing in November 2026 and EUR600 million maturing in November 2027. The next major maturity is in 2028, when EUR500 million of senior notes become due. 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 a 50% equity credit to Whirlpool's USD575 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 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 Corp. Senior Secured 2nd Lien LT BB- New Rating RR4 senior unsecured LT WD Withdrawn BB- WISDOM DENTAL: Gets Extension to Access Cash Collateral ------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Fort Myers Division issued a sixth interim order extending Wisdom Dental, P.A.'s authority to use cash collateral. The sixth interim order signed by Judge Caryl Delano authorized the Debtor to use cash collateral to pay the amounts expressly authorized by the court, including Subchapter V trustee interim compensation; the expenses set forth in the budget, plus an amount not to exceed 10% for each line item; and additional amounts subject to approval by secured creditors. This authorization will continue until further order of the court. The eight-week budget projects total operational expenses of $303,505 for the period from April 20 to June 14. The U.S. Small Business Administration and 19 other secured creditors will receive replacement liens on post-petition collateral, with the same validity and priority as their pre-bankruptcy liens. In addition, the Debtor was ordered to keep its property insured in accordance with the obligations under the loan and security documents with the secured creditors. As of the petition filing, the Debtor reported $850 in cash and $170,420.28 in accounts receivable. It also listed 20 secured creditors that may have valid pre-bankruptcy liens on its cash or receivables such as Seacoast National Bank, U.S. Small Business Administration, Fresh Funding Solutions, and others, some of whom have already been paid in full. The order is available at https://tinyurl.com/38k5et97 About Wisdom Dental P.A. Wisdom Dental, P.A. operates a dental clinic under the name Ave Maria Dentistry from its location in Ave Maria, Florida. The practice provides preventive, restorative, and cosmetic dental services and is led by Dr. Wisdom D. Akpaka. The company was incorporated in Florida in 2015. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 25-01508) on August 6, 2025. In the petition signed by Wisdom Akpaka, president, the Debtor disclosed $223,970 in assets and $2,851,770 in liabilities. Judge Caryl E. Delano oversees the case. Michael Dal Lago, Esq., at Dal Lago Law, represents the Debtor as bankruptcy counsel. WORTHINGTON STEEL: Fitch Rates Sr. Secured Notes $700MM ------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating with a Recovery Rating of 'RR2' to Worthington Steel, Inc.'s proposed $700 million senior secured notes. Proceeds of the proposed notes, along with proceeds of the recently rated new Worthington Steel term loan, will be used to finance the acquisition of Klockner & Co. SE and other corporate purposes. Since the acquisition is expected to be consummated on June 3, 2026, Worthington Steel elected to issue the notes directly, rather than through its wholly owned subsidiary, WS Escrow LLC, and the net proceeds of the offering are not expected to be deposited into escrow. If the acquisition is not consummated by March 12, 2027 (or, in certain circumstances, ten business days thereafter) or upon the occurrence of certain other events, the notes will be subject to a special mandatory redemption. The ratings reflect Worthington Steel's size as the second-largest North American service center, its scale, and operational and geographic diversification, pro forma for the Kloeckner acquisition. The Stable Rating Outlook reflects Fitch's view that Worthington Steel will deleverage through debt repayment and earnings growth for an EBITDA leverage below 3.5x by fiscal YE 2029 and maintain EBITDA margins around 6%. Key Rating Drivers Kloeckner Acquisition Brings Scale/Leverage: Fitch believes the Kloeckner acquisition will improve Worthington Steel's geographic and product diversification while increasing scale, thereby adding operating flexibility and further margin resilience across cycles. Kloeckner's operations will strengthen Worthington Steel's core competencies in carbon flat-roll and electrical steel and expand its product portfolio to include aluminum, stainless, long products and downstream fabrication. It will also extend its footprint, particularly in the Southern U.S. The acquisition will increase financial leverage significantly above Worthington Steel's historical range. Kloeckner has higher financial leverage and the acquisition will be debt funded, which Fitch expects will result in pro forma EBITDA leverage over 4.0x. This compares to about 1.1x currently and less than 1.0x historically. The company aims to reduce net leverage to 2.5x within 24 months of the acquisition closing. Synergies/Integration Track Record: Fitch believes the USD150 million run-rate synergies target by the end of fiscal 2028 (May 31, 2028) is reasonable, does not rely on significant changes to footprint, and is roughly half under the company's control and not dependent on market improvement. The company has a track record of successful acquisition integration and a dedicated team. Fitch assumes half of the target in its rating case. Deleveraging Capacity: Fitch expects FCF to be over USD200 million per year on average beginning in fiscal 2028, bolstered by prior capital programs at each company to grow value-added processing and prior divestiture of non-core operations. Fitch expects the company to maintain its dividend at current levels and for capex to be less than USD120 million per year beginning in fiscal 2028. Improvements in working capital efficiency and additional portfolio actions would speed deleveraging but are not included in Fitch's rating case. Subdued Macro Environment/Cyclical Exposure: Fitch believes Worthington Steel will have sufficient flexibility to cut variable costs, delay investment spending and reduce working capital to weather downturns. About 30% of pro forma revenues are exposed to the automotive sector and roughly 20% are exposed to construction. Fitch expects fairly stable auto sales and a gradual recovery in non-residential construction and sustained public infrastructure spending. Balanced Financial Policies: The company has a commitment to deleveraging and maintaining its dividend. Fitch expects Worthington Steel to focus on the integration and capture of synergies as well as debt repayment post-acquisition. Fitch expects it to pursue further M&A and shareholder returns once targets are met. Peer Analysis Worthington Steel's operational profile is most comparable to those of metals service center companies Ryerson Holding Corporation (BB/Stable) and Reliance, Inc. (BBB+/Stable). Worthington Steel, pro forma for the acquisition of Kloeckner, ranks second in the highly fragmented North American service center industry in terms of sales. Reliance is the largest with more than 1.5x the sales of pro forma Worthington Steel. Ryerson, pro forma for the acquisition of Olympic Steel, Inc., is the third largest. The companies have similar underlying volumetric risk resulting from their exposure to cyclical end markets, relatively stable margins, and low annual capex requirements. Pro forma Worthington Steel has higher margins than pro forma Ryerson but will have higher EBITDA leverage after the transaction before deleveraging. Both pro forma Worthington and pro forma Ryerson have lower margins and higher EBITDA leverage than Reliance. Fitch’s Key Rating-Case Assumptions - The Kloeckner acquisition closes on June 3, 2026, under the disclosed terms and financed in part with the proposed notes and new term loan; - Shipments grow at about 2% per year on average through 2030; - Modest growth in average selling prices on mix and improved demand; - EBITDA margin averages about 6%, including 50% of expected synergies; - New pari passu senior secured debt aggregating USD1.4 billion; - No increase in dividends; - In fiscal 2030, Sitem Group non-controlling interest exercise their put requiring payment of about USD97 million; - No additional acquisitions; - Excess cash used to repay debt. Corporate Rating Tool Inputs and Scores Fitch scored Worthington Steel, Inc. 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 (bb+, Moderate), Market and Competitive Positioning (bb, Higher), Diversification and Asset Quality (bb+, Moderate), Company Operational Characteristics (bbb-, Moderate), Profitability (b+, Moderate), Financial Structure (bb, Moderate), and Financial Flexibility (bb, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year 2025, 20% for the forecast year 2026, 20% for the forecast year 2027, 20% for the forecast year 2028 and 20% 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'. To derive the Long-Term 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 4.0x; - EBITDA margins sustained below 5%; - Sustained negative FCF. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage sustained below 3.0x; - EBITDA margins sustainably at or above 7%, driven by increasing levels of value-added processing; - Increase in size and scale. Liquidity and Debt Structure Fitch believes the combined company will generate USD629 million in aggregate FCF from June 1, 2026, through May 31, 2030, and will use this to repay debt. Availability under various credit facilities supports working capital and short-term liquidity requirements. As of Feb. 28, 2026, Worthington Steel had USD90 million of cash on hand and USD150.5 million was available under the company's existing USD550 million ABL RCF due in 2028 after borrowings of USD193 million and accounting for the borrowing base. As of Dec. 31, 2025, Kloeckner had EUR60 million in cash and availability of EUR215 million under a EUR350 million syndicated loan facility due 2028, USD358 million available under the USD650 million U.S. ABL facility due 2027, USD25 million available under the USD115 Mexican ABL due 2028, EUR62 million available under the EUR100 million asset based securitization facility due 2028, and CHF130 million available under the CHF200 million unsecured syndicated facility due 2029. Shortly after closing, Worthington Steel will replace its existing USD550 million ABL with a new, five-year USD550 million ABL facility. Upon merging Worthington Steel's and Kloeckner's capital structure, the new ABL will increase to USD1.2 billion and replace in full the USD650 million Kloeckner U.S. ABL. Issuer Profile Worthington Steel is a leading U.S. independent intermediate carbon flat-rolled steel processor with 37 facilities (19 in the U.S.). The Kloeckner acquisition will add about 110 locations across North America and Europe. 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 Worthington Steel, 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 ----------- ------ -------- WS Escrow LLC senior secured LT BB+ New Rating RR2 ZOE CENTER: Seeks to Hire Stone & Baxter LLP as Counsel ------------------------------------------------------- Zoe Center For Pediatric and Adolescent Health, LLC and Zoe Center for ABA and Development Services, LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Middle District of Georgia to employ Stone & Baxter, LLP as counsel. The firm will provide these services: a. give Debtors legal advice with respect to the powers and duties of Debtors-in-Possession in the continued operation of the business and management of Debtors; b. prepare on behalf of Debtors, as Debtors-in-Possession, necessary applications, motions, answers, reports, and other legal papers; c. continue existing litigation, if any, to which Debtors-in-Possession may be a party and to conduct examinations incidental to the administration of their estates; d. take any and all necessary actions for the proper preservation and administration of Debtors' estates; e. assist Debtors-in-Possession with the preparation and filing of their Statement of Financial Affairs and Schedules and Lists as are appropriate; f. take whatever actions are necessary with reference to the use by Debtors of their property pledged as collateral, including cash collateral, if any, and to preserve the same for the benefit of Debtors and secured creditors in accordance with the requirements of the Bankruptcy Code; g. assert, as directed by Debtors, all claims Debtors have against others; h. assist Debtors in connection with claims for taxes made by governmental units, if any; i. assist Debtors with preparing a Plan of Reorganization and confirmation thereof; and j. perform all other legal services for Debtors as the Debtors-in-Possession may deem necessary. The firm will be paid at these rates: Attorneys $235 to $420 per hour paralegals $135 per hour The firm received an initial deposit in the amount of $12,524, including the amounts required for the filing fees and $11,738. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. David L. Bury, Jr., disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: David L. Bury, Esq. Stone & Baxter, LLP 577 Third Street Macon, Georgia 31201 Tel: (478) 750-9898 Fax: (478) 750-9899 Email: dbury@stoneandbaxter.com About Zoe Center for Pediatric and Adolescent Health, LLC Zoe Center for Pediatric and Adolescent Health, LLC is a healthcare provider focused on delivering medical services for children and adolescents. The organization offers pediatric care and related outpatient health services within its clinical operations. Zoe Center for Pediatric and Adolescent Health, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-50832) on May 18, 2026. In its petition, the debtor reports estimated assets between $1 million and $10 million and estimated liabilities within the same range. Honorable Bankruptcy Judge Robert M. Matson handles the case. The debtor is represented by David L. Bury, Jr., Esq. of Stone & Baxter, LLP. [] ATTOM Flags High Foreclosure Rates in Q1 2026 Housing Report --------------------------------------------------------------- ATTOM, the leading provider of property data, AI-powered intelligence, and real estate analytics solutions, released its latest Housing Risk Report spotlighting county-level housing markets around the United States that were more or less vulnerable to declines, based on home affordability, equity and other measures in the first quarter of 2026. Of the 50 riskiest counties, 12 were in Florida, nine in California, and five each in Illinois and New Jersey, according to ATTOM's analysis. The overall riskiest markets in ATTOM's analysis were Charlotte County, FL; Butte County, CA; Charles County, MD; Shasta County, CA; and Cumberland County, NJ. While affordability remains a nationwide challenge, these riskiest markets were characterized by particularly high rates of unemployment and some of the worst foreclosure rates compared to the other counties included in the analysis. "While home prices have eased slightly from last summer's record highs, affordability remains a challenge in much of the country," said Rob Barber, CEO of ATTOM. "The greatest risk remains in counties where unemployment rates are above 5 percent and homes are being foreclosed at greater rates." Counties were considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with seriously underwater mortgages, the percentage of average local wages required to pay for major home ownership expenses on median-priced single-family homes, and local unemployment rates. The conclusions were drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM. Unemployment rates came from federal government data. Rankings were based on a combination of those four categories in 580 counties around the United States, with sufficient data to analyze in the first quarter of 2026. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the four ranks. See below for the full methodology. Tennessee boasts some of the safest markets Among the 50 least risky counties in ATTOM's analysis, nine were in Tennessee, five each were in Virginia and Wisconsin, and four were in Michigan. The least risky counties were Chittenden County, VT; Rutherford County, TN; Arlington County, VA; Tippecanoe County, Indiana, and Cumberland County, ME. These counties were not notably more affordable than others, but they benefited from some of the lowest unemployment and best foreclosure rates in the country, along with low shares of underwater mortgages. California counties top lists of least affordable, highest unemployment In the first quarter of 2026, the national median home sales price was $360,000, which would have consumed 30.3 percent of the typical American worker's annual wages for major monthly purchase expenses. The least affordable counties in ATTOM's analysis were Kings County, NY (purchase expenses for a median priced home would consumed 108.6 percent of the typical resident's wages); Santa Cruz County, CA (97.1 percent); Marin County, CA (91.1 percent); San Luis Obispo County, CA (89.7 percent); and Orange County, CA (88.1 percent). Nationwide, 3.2 percent of homes were considered seriously underwater, meaning the combined estimated balances of loans secured by the properties were at least 25 percent higher than the properties' estimated market values. The counties with the highest rates of seriously underwater homes were all in Louisiana: Ouachita Parish (17.4 percent); Calcasieu Parish (17.1 percent), Tangipahoa Parish (15 percent), Ascension Parish (14.5 percent), and Rapides Parish (13.2 percent). One out of every 1,211 homes nationwide were in the process of foreclosure in the first quarter of 2026. The counties with the highest rates of foreclosure in ATTOM's analysis were Liberty County, TX (one in every 55 homes in the process of foreclosure); Baltimore City, MD (one in every 294 homes); Dorchester County, SC (one in every 352 homes); Kaufman County, TX (one in every 361 homes); and Pueblo County, CO (one in every 368 homes). The national unemployment rate was 4.4 percent in February, according to the U.S. Bureau of Labor Statistics. Among the 580 counties in ATTOM's analysis, the highest unemployment rates were in Imperial County, CA (17.6 percent); Yuma County, AZ (11.7 percent); Tulare County, CA (11.5 percent); Merced County, CA (10.9 percent); and Monterey County, CA (10.8 percent). Conclusion ATTOM's first quarter 2026 Housing Impact Report shows that unemployment and foreclosure rates drove housing market risk, particularly in select Florida and California counties while affordability remained a lingering challenge nationwide. Report methodology The ATTOM Housing Risk Report is based on ATTOM's first quarter 2026 foreclosure activity, home affordability and underwater property reports, along with February 2026 unemployment figures from the U.S. Bureau of Labor Statistics. (Press releases for affordability, foreclosure and underwater-property reports show the methodology for each.) Counties with sufficient data to analyze were ranked based on the first-quarter percentage of properties with a foreclosure filing, the percentage of average local wages needed to afford the major expenses of owning a median-priced home and the percentage of properties with outstanding mortgage balances that exceeded 125 percent of their estimated market values, along with November 2025 county-level unemployment rates. Counties in Connecticut were excluded from this analysis due to data collection issues affecting wage information, affordability, and home-equity data for those areas. Ranks then were added up to develop a composite ranking across all four categories. Equal weight was given to each category. Counties with the lowest composite rank were considered most vulnerable to housing market problems, while those with the highest composite rank were considered least vulnerable. About ATTOM ATTOM delivers AI-driven property intelligence built on one of the nation's most trusted property data assets, covering 160 million U.S. properties--99% of the population. Our engineered, multi-sourced real estate data spans property tax, deeds, mortgages, foreclosure, environmental risk, property conditions, natural hazards, neighborhood insights, and geospatial boundaries, rigorously validated for advanced analytics. ATTOM supports analytics and AI-driven applications through flexible delivery options including APIs, bulk licensing, cloud delivery, and the MCP Server for AI-powered, agentic access to engineered property data--enabling organizations to automate analysis and scale property intelligence across industries. [] LegalShield Shows South at Highest Foreclosure Level Since 2019 ------------------------------------------------------------------ The U.S. housing market is splitting in two and geography is the fault line. New LegalShield data, drawn from 36 million consumer legal intakes, shows foreclosure pressure in the South at its highest point since 2019, even as Western markets stand as the only region running above pre-pandemic norms. The findings come from the LegalShield Consumer Stress Legal Index, a leading indicator of foreclosure filings, housing starts, and existing-home sales built on U.S. Census Bureau regional definitions. At the end of Q1 the index predicted rising foreclosure activity through mid-2026. The latest foreclosure data confirms that the top three foreclosure rates are in Delaware, South Carolina and Florida, all in the South region. "What our data is showing is essentially two housing markets inside one country," said Matt Layton, senior vice president of Consumer Analytics for LegalShield. "The West is the lone outperformer -- the only region running above pre-pandemic norms across foreclosure, construction, and sales simultaneously. The rest of the country is under pressure, and the South is where that pressure is most acute." The South: Spiking Foreclosure Pressure The pressure is most visible in the South, where the Foreclosure Index reached 52.4 in April -- up 46.4% year over year and the region's highest reading since October 2019. The spike reflects the back end of the COVID-era boom: the South led the country in building and buying between 2020 and 2022, and the escrow consequences of that surge are now reshaping total monthly payments even on fixed-rate loans. "What's driving the foreclosure calls in the South isn't the principal and the interest, it's the escrow," said Ben Farrow, LegalShield provider attorney and partner at Anderson, Williams, & Farrow, LLC. "Homeowners insurance and property tax increases have quietly reset the total monthly payment higher on loans people thought were stable. That payment shock is what's moving people from financial stress to legal action." The April data across all three indices: * Foreclosure Index: 52.4 (+46.4% YoY) -- the region's highest reading since October 2019 and the steepest year-over-year increase of any region * Housing Construction Index: 107.5 (–3.3% YoY) -- builder activity moderating after leading the country during the COVID boom * Housing Sales Index: 92.7 (+5.7% YoY) -- modest improvement but still 10.2% below February 2020 The West: The Outperformer The West tells a different story. The region is the lone outperformer in the country, running above pre-pandemic norms across all three indices simultaneously -- the only region that can make that claim. "The West is the one part of the country where all three signals are pointing in the right direction at the same time," Layton said. "Construction is above pre-pandemic norms and still growing. Sales are recovering. And even where foreclosure inquiries are rising, the absolute level remains well below the rest of the country. That's a fundamentally different housing environment than what we're seeing in the South or the Midwest." The April data across all three indices: * Foreclosure Index: 35.0 (+21.8% YoY) -- the lowest regional reading in the country, still 39.6% below February 2020 despite the year-over-year increase * Housing Construction Index: 146.3 (+4.5% YoY) -- the only region above its pre-pandemic average, running 15.5% above its 2018–19 baseline * Housing Sales Index: 125.2 (+11.9% YoY) -- the strongest regional sales rebound in the country and the only region above its pre-pandemic level The Midwest: Elevated Stress, Weak Activity The Midwest presents a different kind of stress. Where the South is seeing the sharpest rate of increase in foreclosure pressure, the Midwest carries the highest absolute foreclosure reading of any region -- a distinction that reflects years of cumulative pressure rather than a single cycle's correction. "The Midwest foreclosure number isn't a spike, it's a grind," Layton said. "The absolute level is the highest of any region in the country, and it's been climbing steadily. Construction never recovered from its pandemic-era peak the way other regions did, and sales remain well below pre-pandemic baselines. There's no single shock driving this -- it's the cumulative weight of three years of elevated costs with no supply response and no demand rebound." The April data across all three indices: * Foreclosure Index: 55.4 (+11.2% YoY) -- the highest absolute foreclosure reading of any U.S. region * Housing Construction Index: 96.7 (+0.3% YoY) -- effectively flat year over year and down 36% from its October 2020 peak, the largest pandemic-era decline of any region * Housing Sales Index: 83.5 (+3.1% YoY) -- modest year-over-year improvement, still 13.8% below the 2018–19 pre-pandemic baseline The Northeast: Slowest Market, Foreclosure Pressure Easing The Northeast is the most frozen regional housing market in the country -- and the one anomaly in the national foreclosure story. It is the only region where foreclosure pressure is easing year over year, even as construction and sales activity remain the lowest of any region. "The Northeast foreclosure number is the one genuinely encouraging regional signal in this report," Layton said. "But it's important to read it in context. Foreclosure pressure is declining there, but construction and sales are also the lowest in the country by a wide margin. This isn't a healthy market -- it's a locked market. Homeowners aren't losing homes at an accelerating rate, but they're not moving either." The April data across all three indices: * Foreclosure Index: 52.5 (–10.4% YoY) -- the only U.S. region where foreclosure pressure is declining year over year * Housing Construction Index: 75.9 (+7.4% YoY) -- the lowest construction reading in the country despite the year-over-year gain * Housing Sales Index: 59.5 (+6.3% YoY) -- still 27.1% below February 2020, the most frozen regional sales market in the country National Picture: Signs point to continued foreclosure squeeze The national Foreclosure Index reached 49.7 in April 2026, up 13.5% year over year and 71.4% above its April 2021 moratorium-era trough. It is the second consecutive month at the highest sustained level since spring 2020. "What we flagged in April as an emerging foreclosure trend has now sharpened into a regional story," Layton said. "The direction we predicted is unmistakable. This is nowhere near a 2008-style crisis -- the Great Recession peak was 283.2 in March 2009, and we're at 49.7 -- but foreclosure pressure is now in its second consecutive year of double-digit gains, and the South is bearing the heaviest load." The construction and sales pictures are consistent with what April's data suggested. The Housing Construction Index registered 110.0 -- down 1.4% year over year and holding in the same narrow 108–118 band it has occupied since mid-2023, with every reading in the past twelve months below the pre-pandemic average. The Housing Sales Index posted its first year-over-year gain in twelve months, ticking up 1.3% to 94.2 -- a tentative signal of recovery, but still 11.3% below its February 2020 pre-pandemic level. The Outlook The April 2026 readings point to three things heading into summer: foreclosure filings will continue to climb through summer 2026, particularly in southern markets; housing starts will remain near or just below pre-pandemic norms; and existing-home sales activity will likely show modest year-over-year improvement in the coming months. The full report is available at https://tinyurl.com/yc7mezn5 About the LegalShield Consumer Stress Legal Index The LegalShield Consumer Stress Legal Index (CSLI) is a proprietary data set based on more than 150,000 monthly legal intakes from LegalShield members. Historically, the CSLI has served as a leading indicator of macroeconomic trends, often predicting shifts in consumer confidence and financial health weeks or months before official government reports. Released quarterly, view past reports on the CSLI page on LegalShield.com. About LegalShield For more than 50 years, LegalShield has provided everyday Americans with easy and affordable access to legal advice, counsel, protection, and representation. Serving millions, LegalShield is one of the world's largest platforms for legal, identity, and reputation management services protecting individuals and businesses across North America. Founded in 1972, LegalShield and its privacy management product IDShield equip individuals, families, businesses, and employers with the tools they need to affordably live a just and secure life. Through technology and innovation, LegalShield is transforming how people access legal guidance, with hundreds of qualified attorneys and law firms across the country. To learn more, visit LegalShield.com and IDShield.com. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Yoon S. Kim Bankr. C.D. Cal. 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Case No. 26-15625 Chapter 11 Petition filed June 4, 2026 represented by: Giovanni Orantes, Esq. In re J3 Equities, LLC Bankr. M.D. Fla. Case No. 26-04181 Chapter 11 Petition filed June 4, 2026 See https://www.pacermonitor.com/view/N7WMWBA/J3_Equities_LLC__flmbke-26-04181__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Lisa Gilmore Design, LLC Bankr. M.D. Fla. Case No. 26-04817 Chapter 11 Petition filed June 4, 2026 See https://www.pacermonitor.com/view/MKOMKHQ/Lisa_Gilmore_Design_LLC__flmbke-26-04817__0001.0.pdf?mcid=tGE4TAMA represented by: Leon Williamson, Esq. WILLIAMSON LAW FIRM E-mail: Service@LwilliamsonLaw.com In re Sophia Maria Bornschein Bankr. S.D. Fla. Case No. 26-17375 Chapter 11 Petition filed June 4, 2026 represented by: Jason S. Rigoli, Esq. In re Windmill Lakes V Condominium Association, Inc. Bankr. S.D. Fla. Case No. 26-17338 Chapter 11 Petition filed June 4, 2026 See https://www.pacermonitor.com/view/43TTUZQ/Windmill_Lakes_V_Condominium_Association__flsbke-26-17338__0001.0.pdf?mcid=tGE4TAMA represented by: Robert Reynolds, Esq. LORIUM LAW E-mail: rreynolds@loriumlaw.com In re Morris & 1 Son Holdings LLC Bankr. E.D. La. Case No. 26-11375 Chapter 11 Petition filed June 4, 2026 See https://www.pacermonitor.com/view/72BLYZI/Morris__1_Son_Holdings_LLC__laebke-26-11375__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re 224 Washington Street LLC Bankr. D.N.J. Case No. 26-16363 Chapter 11 Petition filed June 4, 2026 See https://www.pacermonitor.com/view/4VWSCXY/224_Washington_Street_LLC__njbke-26-16363__0001.0.pdf?mcid=tGE4TAMA represented by: Barry Miller, Esq. BARRY S MILLER ATTORNEY AT LAW E-mail: bmiller@barrysmilleresq.com In re David Arthur Shabsels Bankr. D.N.J. Case No. 26-16530 Chapter 11 Petition filed June 4, 2026 represented by: Donald W Clarke, Esq. In re Michael Aaron Shabsels Bankr. D.N.J. Case No. 26-16529 Chapter 11 Petition filed June 4, 2026 represented by: Donald Clarke, Esq. In re Sarita Khatri Bankr. E.D.N.Y. Case No. 26-72276 Chapter 11 Petition filed June 4, 2026 represented by: Heath Berger, Esq. In re Jason Joseph McKeever Bankr. M.D. Tenn. Case No. 26-02687 Chapter 11 Petition filed June 4, 2026 represented by: Denis Waldron, Esq. DUNHAM HILDEBRAND PAYNE WALDRON, PLLC In re Philippe Emanuel Mulacek Bankr. S.D. Tex. Case No. 26-90619 Chapter 11 Petition filed June 4, 2026 In re Robert G. Johnson Bankr. W.D. Wash. Case No. 26-11865 Chapter 11 Petition filed June 4, 2026 represented by: James Dickmeyer, Esq. ********* 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. 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