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T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, December 29, 2017, Vol. 18, No. 258
Headlines
P U E R T O R I C O
MAC ACQUISITION: Committee Objects to Disclosure Statement
MAGUMO CORP: Unsecureds to Get Single Dividend Payment of $5,000
ONCOLOGY INSTITUTE: Court Confirms Chapter 11 Plan
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P U E R T O R I C O
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MAC ACQUISITION: Committee Objects to Disclosure Statement
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The Official Committee of Unsecured Creditors of Mac Acquisition
LLC, et al., object to the disclosure statement explaining the
Debtors' plan, complaining that the disclosure statement lacks
adequate information for unsecured creditors to make an informed
decision.
The Committee specifically complained that the disclosure
statement lacks information regarding the value of the debtors and
their assets, as well as information on plan feasibility and the
debtors post-emergence liquidity.
The Committee proposed the following modifications to the
disclosure statement:
* The Debtors should be required to file the cure schedule
ahead of the proposed timeline and provide contract
counterparties with additional time to review and, if
necessary, object.
* A deadline for the Debtors to provide adequate assurance
information to contract counterparties must be provided
before a contract can be assumed or assumed and assigned.
* The Debtors should not be authorized to reject a contract
or lease post-confirmation that they previously sought to
assume.
* As the reorganized Debtors have no stake in the ultimate
distribution to holders of allowed general claims, the
Debtors should not be authorized to oversee the claims
reconciliation process. Either a liquidating trust should
be established, or a claims ombudsman appointed.
A full-text copy of the Committee's objection dated December 4,
2017 is available at:
http://bankrupt.com/misc/deb17-12224-269.pdf
The Committee is represented by:
Justin R. Alberto, Esq.
Gregory J. Flasser, Esq.
BAYARD, P.A.
600 N. King Street, Suite 400
Wilmington, DE 19801
Tel: (302) 655-5000
Fax: (302) 658-6395
Email: jalberto@bayardlaw.com
gflasser@bayardlaw.com
-- and --
Eric R. Wilson, Esq.
Jason R. Adams, Esq.
Lauren S. Schlussel, Esq.
KELLEY DRYE & WARREN LLP
101 Park Avenue
New York, NY 10178
Tel: (212) 808-7800
Fax: (212) 808-7897
Email: ewilson@kelleydrye.com
jadams@kelleydrye.com
lschlussel@kelleydrye.com
About Mac Acquisition LLC
Mac Acquisition LLC, et al. -- https://www.macaronigrill.com/ --
operate full-service casual dining restaurants under the trade
name, "Romano's Macaroni Grill." As of Oct. 18, 2017, the company
operates 93 company-owned restaurants located in 23 states, with a
workforce of approximately 4,600 employees. Non-debtor affiliate
RMG Development franchises an additional 23 restaurants in
Florida, Hawaii, Illinois, Texas, Puerto Rico, Mexico, Bahrain,
Egypt, Oman, the United Arab Emirates, Qatar, Germany, and Saudi
Arabia.
During 2016, Mac Acquisition and RMG generated gross revenues
through restaurant sales and franchisee payments of approximately
$230 million.
On Oct. 18, 2017, Mac Acquisition LLC, and eight affiliates sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 17-12224).
Mac Acquisition's estimated assets of $10 million to $50 million
and debt at $50 million to $100 million.
The Hon. Mary F. Walrath is the case judge.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP, as
Delaware bankruptcy counsel; Gibson, Dunn & Crutcher LLP, as
general bankruptcy counsel; Mackinac Partners, LLC, as financial
advisor; and Duff & Phelps Securities, LLC as financial advisor
and investment banker. Donlin, Recano & Company, Inc., is the
claims agent.
On October 30, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. The committee hired
Kelley Drye & Warren LLP as its lead counsel, and Bayard, P.A., as
co-counsel with Kelley Drye.
MAGUMO CORP: Unsecureds to Get Single Dividend Payment of $5,000
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Magumo Corp. has filed a disclosure statement dated December 2,
2017 with the U.S. Bankruptcy Court for the District of Puerto
Rico.
The claim filed by Banco Santander de PR (BSPR) in the amount of
$1,412,342, is classified as a secured claim. BSPR's claim is
secured with three mortgage notes encumbering the debtor's
commercial property known as Motel La Montana, which is located at
PR #1 Km 47.6, Beatriz Ward in Caguas PR.
Allowed priority claims consist of employee benefits, specifically
vacations, up to a maximum of $11,725 for each individual, earned
within 180 days before the date of the filing of the petition.
Employee vacations accrued or owed within 180 days prior to filing
debtor's petition were scheduled at the time of filing of the
instant bankruptcy petition in the amount of $725. All allowed
amounts that may be owed under this class will be paid in the
ordinary course of business of the debtor. In the alternative,
members of this class which may no longer be employed by the
debtor will receive full payment on account of their allowed
claims on the effective date of the plan.
In relation with general unsecured creditors, the aggregate
dividend to this class would be fixed in the amount of $5,000 with
payments to be distributed pro-rata in a single lump sum payment
rata among the outstanding and allowed claims of each creditor. On
the consummation date, such claimant shall receive from the debtor
a single dividend check providing on the proportional distribution
share of each claim over an aggregate dividend amount for this
class of $5,000. Upon this single dividend, no further payment is
provided in the plan of reorganization.
Equity security and interest holders will not receive any cash
dividend throughout the plan.
Finally, unsecured priority tax claims shall be paid in full, in
cash, and will receive monthly payments with interest computed at
statutory rates over a period not exceeding five years after the
date of the filing of the petition.
The debtor believes that it will have enough cash on hand on the
effective date of the plan to pay all the claims and expenses that
are entitled to be paid on that date.
A full-text copy of Magumo Corp.'s disclosure statement is
available at:
http://bankrupt.com/misc/prb17-01642-11-42.pdf
Magumo Corp. is represented by:
Wigberto Lugo Mender, Esq.
Alexis A. Betancourt Vincenty, Esq.
LUGO MENDER GROUP, LLC
100 Carr. 165 Suite 501
Guaynabo, PR 00968-8052
Tel: (787) 707-0404
Fax: (787) 707-0412
Email: wlugo@lugomender.com
a_betancourt@lugomender.com
About Magumo Corp.
Magumo Corp sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.P.R. Case No. 17-01642) on March 10, 2017. The
petition was signed by Maria Francisca Rivera-Rivera, president.
The case is assigned to Judge Mildred Caban Flores.
At the time of the filing, the Debtor disclosed $545,052 in assets
and $1.13 million in liabilities.
The Debtor has a fee simple interest in a land located in Beatriz
Ward, Caguas, Puerto Rico, with real properties used as "motel,"
valued at $500,000 subject to the liens of Banco Santander and
CRIM.
ONCOLOGY INSTITUTE: Court Confirms Chapter 11 Plan
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Judge Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for
the District of Puerto Rico approved the disclosure statement
filed
by Oncology Institute of Puerto Rico PSC on August 16, 2017. The
judge also confirmed the plan filed by the debtor on August 16,
2017.
About Oncology Institute of Puerto Rico
Oncology Institute of Puerto Rico, P.S.C., a health care business.
It is a corporation organized and registered in Puerto Rico on
Jan.
7, 2015. The Debtor provides health services, specialized on
hematology and oncology, through Dr. Sylvia Garcia Ortiz, MD, who
is the Debtor's president and sole shareholder. The health
services are provided in Metro Medical Center in Bayamon, Puerto
Rico.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. P.R. Case No. 17-00212) on Jan. 18, 2017. Nilda
Gonzalez-Cordero, Esq., serves as the Debtor's bankruptcy counsel.
At the time of the filing, the Debtor estimated assets and
liabilities of less than $500,000.
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