/raid1/www/Hosts/bankrupt/TCR_Public/180118.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, January 18, 2018, Vol. 22, No. 17
Headlines
119 MAIN STREET: Voluntary Chapter 11 Case Summary
2004 WYOMING: Plan Confirmation Hearing Moved to March 8
270 BERGER: Court Confirms 2nd Modified Reorganization Plan
309 BARONNE: Feb. 15 Approval Hearing on Disclosure Statement
417 LACKAWANNA: Taps Lanard & Axilbund as Real Estate Broker
AGACI LLC: Wants to Use Cash Collateral on Interim Basis
ALLIANCE SECURITY: Taps Venable LLP as Special Counsel
ASPEN CONSTRUCTORS: Taps Holland & Hart as Special Counsel
AURORA III REALTY: Taps Willis & Wilkins as Legal Counsel
BADLANDS ENERGY: Ballard Spahr to Continue Representation
BENNELL STREET: Case Summary & 8 Unsecured Creditors
CAPITOL STATION 65: Can Borrow Up to $10MM from Serene Investment
CASHMAN EQUIPMENT: May 23 Hearing on Exclusivity Extension
CLEARVIEW SHELDON: U.S. Trustee Unable to Appoint Committee
CORPORATE RISK: S&P Affirms 'B-' CCR, Outlook Stable
CRAPP FARMS: Taps Tim Slack as Auctioneer
CSP ASSET II: Taps Ridout Barrett as Accountant
DIAGNOSTIC CENTER: Case Summary & 20 Largest Unsecured Creditors
DOOMAWENDSCHUH LLC: Seeks February 8 Plan Filing Extension
DUPREE FARMS: Case Summary & 16 Largest Unsecured Creditors
EAST GRAND PREPARATORY: S&P Alters Outlook on 2016A/B Bonds to Neg.
ECLIPSE BERRY: Case Summary & 20 Largest Unsecured Creditors
ENERGIZER HOLDINGS: Moody's Puts Ba2 CFR on Review for Downgrade
ENERGIZER HOLDINGS: S&P Alters Outlook to Neg. & Affirms 'BB' CCR
ENERGY TRANSFER: Asset Sale Neutral to Ratings, Fitch Says
ENERGY TRANSFER: S&P Affirms 'BB-' CCR, Outlook Stable
EQUINIX INC: Fitch Affirms 'BB' Long-Term IDR; Outlook Stable
FAMILY FOR LIFE: Court Denies Plan Exclusivity Extension
FLEXERA SOFTWARE: S&P Cuts CCR to 'B-' on $700MM in Debt Issuance
FORTRESS CREDIT V: S&P Assigns BB(sf) Rating on Class E Notes
FOX PROPERTY: Case Summary & 13 Unsecured Creditors
FRONT STREET VENTURES: Unsecureds to be Paid 5% Over 10 Years
GARRETT PROPERTIES: Feb. 21 Amended Disclosure Statement Hearing
GILA RIVER: Taps Shackelford Hawkins as Legal Counsel
GUARDIAN ENTERPRISES: Taps Elkins and Associates as Accountant
GUARDIAN ENTERPRISES: Taps Quist Fitzpatrick as Legal Counsel
HARDES HOLDING: U.S. Trustee Unable to Appoint Committee
HOLOGIC INC: Moody's Gives Ba3 Rating to New Unsec. Notes Due 2028
HOLOGIC INC: S&P Rates New Senior Unsecured Notes Due 2028 'BB-'
HT INTERMEDIATE: S&P Affirms 'CCC' Corp. Credit Rating, Outlook Neg
ILLINOIS FINANCE: Fitch Withdraws BB- Rating on 2010 Bonds
KANSAS INTERNAL: Taps Cornerstone CPA as Accountant
KAPPA DEVELOPMENT: Has Final OK To Obtain Financing From Blackledge
KINGMAN FARMS: Case Summary & Unsecured Creditor
KLX INC: Moody's Alters Outlook to Positive & Affirms B1 CFR
LAUREATE EDUCATION: S&P Hikes Sr. Secured Credit Ratings to 'B+'
LIGNUS INC: Wants to Maintain Exclusivity Through September 3
LNB-015-13 LLC: Needs More Time to Value Collateral
LOOKIN UP: Wants 30-Day Extension of Exclusive Plan Filing Deadline
MARINE MAMMAL: Case Summary & 3 Unsecured Creditors
MCO INDUSTRIES: Plan and Disclosures Hearing Set for Feb. 9
MISSION CRANE: Flash Funding Does Not Allow Cash Collateral Use
NABORS INDUSTRIES: Fitch Lowers Long-Term IDR to BB; Outlook Neg.
NABORS INDUSTRIES: Moody's Rates Proposed Sr. Unsecured Notes Ba3
NAVILLUS TILE: Committee Taps FTI as Financial Advisor
NORFOLK STREET: Voluntary Chapter 11 Case Summary
OAKFABCO INC: Seeks Court Approval of Disclosure Statement
OLIN CORP: Moody's Rates Proposed $500MM Notes Due 2030 'Ba1'
OLIN CORP: S&P Rates Proposed $500MM Unsec. Notes Due 2030 'BB'
ON SEMICONDUCTOR: S&P Affirms 'BB' CCR, Outlook Stable
ORCAL GEOTHERMAL: Fitch Affirms BB Rating on $165MM Notes Due 2020
PASSAGE MIDLAND: PCO Files 4th 60-Day Report
PASSAGE VILLAGE: PCO Files 4th 60-Day Report
PASSAGE VILLAGE: PCO Files 4th 60-Day Report for Longwood
PGX HOLDINGS: S&P Cuts CCR to 'B-' & Alters Outlook to Negative
PLACE FOR ACHIEVING: Court Directs U.S. Trustee to Appoint PCO
PREFERRED CARE: Appointment of PCO Necessary, Court Rules
PRIME SECURITY: Moody's Revises Outlook to Pos. & Affirms B1 CFR
PROWLER ACQUISITION: S&P Affirms 'CCC+' CCR, Outlook Negative
PULLARKAT OIL: May Use Cash Collateral Through March 22
RESEARCH NOW: S&P Affirms 'B' CCR on Merger With Survey Sampling
ROBERT WINZINGER: Plan Exclusivity Period Extended Until March 5
SHIEKH SHOES: Committee Taps Province Inc. as Financial Advisor
SPECTRUM BRANDS: Sale of Batteries Biz No Impact on Fitch's BB IDR
SRQ TAXI MANAGEMENT: Has Until March 19 to Exclusively File Plan
SS&C TECHNOLOGIES: S&P Puts 'BB' CCR on CreditWatch Negative
SUNSHINE SEATTLE: U.S. Trustee Unable to Appoint Committee
SUNSHINE SEATTLE: Wants to Use Cash for February 2018 Expenses
SURVEY SAMPLING: S&P Raises CCR to 'B' on Merger With Research Now
TRIAD WELL: Case Summary & 20 Largest Unsecured Creditors
TUCSON ONE: Taps Southwest Appraisal Associates as Appraiser
UNIVERSAL LAND: Taps Mossy Oak Properties as Broker
USI SERVICES: Taps Equity Partners as Investment Banker
USI SERVICES: Taps HBM Management as Financial Advisor
VESTER INVESTMENTS: Voluntary Chapter 11 Case Summary
VIZIENT INC: Moody's Ups Corp. Family Rating to B1; Outlook Stable
VIZIENT INC: S&P Assigns 'BB-' Ratings on New Sr. Secured Debts
WHOLELIFE PROPERTIES: Trustee Seeks to Expand Scope of F&P Services
WILLIAM FOCAZIO: Case Summary & 20 Largest Unsecured Creditors
XS RANCH FUND: Plan Filing Period Extended Through March 15
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
119 MAIN STREET: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: 119 Main Street, L.L.C.
117 Main Street, Suite 6
New Paltz, NY 12561
Type of Business: 119 Main Street, L.L.C., is a real estate
company based in New Paltz, New York. It is an
affiliate of Covington Route 300, LLC, which
sought bankruptcy protection on May 9, 2017
(Bankr. S.D.N.Y. Case No. 17-35780).
Chapter 11 Petition Date: January 15, 2018
Court: United States Bankruptcy Court
Southern District of New York (Poughkeepsie)
Case No.: 18-35074
Judge: Hon. Cecelia G. Morris
Debtor's Counsel: Jonathan S. Pasternak, Esq.
DELBELLO DONNELLAN WEINGARTEN WISE &
WIEDERKEHR, LLP
One North Lexington Avenue
White Plains, NY 10601
Tel: (914) 681-0200
Fax: (914) 684-0288
Email: jpasternak@ddw-law.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Georgina Tufano, manager and 100%
owner.
The Debtor did not file a list of its 20 largest unsecured
creditors at the time of the filing.
A copy of the Debtor's petition is available for free at:
http://bankrupt.com/misc/nysb18-35074.pdf
2004 WYOMING: Plan Confirmation Hearing Moved to March 8
--------------------------------------------------------
Judge John J. Thomas of the U.S. Bankruptcy Court for the Middle
District of Pennsylvania issued an amended order rescheduling the
confirmation hearing of 2004 Wyoming LP's chapter 11 plan, fixing
the time for filing acceptances or rejections of the plan, and
objections to the confirmation of the plan.
Feb. 8, 2018 is fixed as the last day for submitting written
acceptances or rejections of the plan, and the last day for filing
and serving written objections to confirmation of the plan.
March 1, 2018 is fixed as the last day for filing with the Court a
tabulation of ballots accepting or rejecting the plan.
March 8, 2018 at 9:30 a.m. in the U.S. Bankruptcy Court, Courtroom
No. 2, Max Rosenn U.S. Courthouse, 197 South Main Street,
Wilkes-Barre, Pennsylvania, is fixed for the hearing on the
confirmation of the plan.
About 2004 Wyoming
2004 Wyoming LP filed a Chapter 11 bankruptcy petition (Bankr. M.D.
Pa. Case No. 17-02310) on June 1, 2017. The Petition was signed by
James R. Ruby, managing partner. The case is assigned to Judge John
J. Thomas. The Debtor is represented by David J. Harris, Esq., at
the Law Office of David J. Harris. At the time of filing, the
Debtor had $100,000 to $500,000 in estimated assets and $500,000 to
$1 million in estimated liabilities.
270 BERGER: Court Confirms 2nd Modified Reorganization Plan
-----------------------------------------------------------
Judge Christine M. Gravelle of the U.S. Bankruptcy Court for the
District of New Jersey issued an order approving the disclosure
statement and confirming the second modified plan, dated Oct. 3,
2017, filed by 270 Berger Real Estate, LLC.
The reference to Federal National Mortgage Association as the
creditor in Class 1 of the Plan is amended to remove Federal
National Mortgage Association and in its place, refer to U.S. Bank
Trust, N.A., as Trustee for LSF9 Master Participation Trust.
The Consent Orders are incorporated by reference into the Plan. In
the event of any inconsistency between the Plan and the Consent
Orders, the Consent Orders will control.
About 270 Berger Real Estate Investments
270 Berger Real Estate, LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D.N.J. Case No. 16-21006) on June 6,
2016. The petition was signed by Joseph Plotzker, managing member.
The case is assigned to Judge Christine M. Gravelle.
At the time of the filing, the Debtor estimated assets of less than
$50,000 and liabilities of $1 million to $10 million.
On January 31, 2017, the Debtor filed its Chapter 11 plan of
reorganization and disclosure statement.
309 BARONNE: Feb. 15 Approval Hearing on Disclosure Statement
-------------------------------------------------------------
Judge Jerry A. Brown of the U.S. Bankruptcy Court for the Eastern
District of Louisiana will convene a hearing on Feb. 22, 2018 at
2:00 p.m. to consider approval of 309 Baronne St., L.L.C's first
amended disclosure statement, dated Dec. 29, 2017, in support of
its plan of reorganization dated Jan. 2, 2018.
Feb. 15, 2018 is fixed as the last day for filing written
objections to the first amended disclosure statement, and also as
the last day for filing proofs of claims.
About 309 Baronne St., L.L.C.
309 Baronne St., L.L.C., based in New Orleans, Louisiana, filed a
Chapter 11 petition (Bankr. E.D. La. Case No. 17-10888) on April
10, 2017. Markus E. Gerdes, Esq., at Gerdes Law Firm, L.L.C.,
serves as bankruptcy counsel. The Debtor hired the Law Firm of Ron
Austin & Associates, L.L.C., as special counsel.
In its petition, the Debtor estimated $1 million to $10 million in
assets and $100,001 to $500,000 in liabilities. The petition was
signed by Harry E. Cantrell, Jr., managing member.
417 LACKAWANNA: Taps Lanard & Axilbund as Real Estate Broker
------------------------------------------------------------
417 Lackawanna Avenue LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Pennsylvania to hire Lanard &
Axilbund, LLC as its real estate broker.
Lanard, which conducts business under the name Colliers
International, will assist the Debtor in the sale of its commercial
property located at 417 Lackawanna Avenue, Scranton, Pennsylvania.
The firm will get a commission of 5% of the sale price.
Douglas Sayer, a real estate broker, disclosed in a court filing
that his firm is a "disinterested person" as defined in Section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Douglas R. Sayer
Lanard & Axilbund, LLC
Ten Penn Center
1801 Market Street, Suite 500
Philadelphia, PA 19103
Phone: +1 215 928 7515 / +1 215 925 4600
Email: Douglas.Sayer@colliers.com
Email: colliers.com/philadelphia
About 417 Lackawanna Avenue
417 Lackawanna Avenue LLC operates a real estate agency in
Scranton, Pennsylvania. 417 Lackawanna Avenue LLC filed a Chapter
11 petition (Bankr. M.D. Pa. Case No. 17-04686) on Nov. 13, 2017.
The petition was signed by Gerard T. Donahue, president. At the
time of filing, the Debtor estimated $1 million to $10 million both
in assets and liabilities. The Hon. Robert N. Opel II presides
over the case. The Debtor is represented by John H. Doran, Esq.
and Lisa M. Doran, Esq., at Doran & Doran P.C., as counsel.
AGACI LLC: Wants to Use Cash Collateral on Interim Basis
--------------------------------------------------------
A'GACI, L.L.C., asks the U.S. District Court for the Western
District of Texas for authority to use of cash collateral and all
other collateral on an interim basis in accordance with the
budget.
The Debtor tells the Court that its ability to fund its operations
and the availability to the Debtor of sufficient working capital
and liquidity through the use of cash collateral is vital to the
confidence of the Debtor's employees, suppliers and customers and
to the preservation and maintenance of the going-concern value of
the Debtor's estate. Thus, the Debtor seeks immediate authority to
use the cash collateral in order to prevent immediate and
irreparable harm to the Debtor's estate pending the final hearing.
The Debtor proposes to provide its pre-petition secured lender
JPMorgan Chase Bank, N.A. with the following forms of adequate
protection:
(a) In addition to all existing security interests and liens
granted to or for the benefit of Chase Bank in the prepetition
collateral, Chase Bank is granted replacement security interests
and liens of the same extent, validity, and priority as the
prepetition liens in the prepetition collateral (including the cash
collateral) on all the Debtor's assets and property (except for
avoidance actions arising under Bankruptcy Code), whether now owned
or hereafter created or acquired, real or personal. Said
replacement liens include, without limitation, liens on all cash,
including cash collateral generated or received by the Debtor after
the Petition Date.
(b) The Debtor will pay Chase Bank the payments set forth in
the Budget, beginning from and after the Petition Date. The first
such payment will be due as provided in the Budget.
(c) If and to the extent that the replacement liens and
adequate protection payments prove insufficient to adequately
protect the interests of Chase Bank in the cash collateral, then
Chase Bank will be granted a super-priority cost of administration
claim under, subject to further order of the Court.
(d) The Debtor will maintain, with financially sound and
reputable insurance companies, insurance covering the Pre-Petition
Collateral and the Post-Petition Collateral, which insurance will
be issued by companies, associations, or organizations reasonably
satisfactory to Chase Bank and will cover such casualties, risks,
perils, liabilities, and other hazards reasonably required by Chase
Bank. The Debtor will name Chase Bank as an additional loss payee
on all such insurance policies obtained by the Debtor in accordance
with the Interim Order.
(e) The Debtor will make available to Chase Bank all balance
sheets, income statements, records of funds received in connection
with the collateral, and all other standard financial statements.
Further, the Debtor will also provide Chase Bank with copies (which
may include electronic copies submitted via e-mail or electronic
case filing) of all monthly operating reports delivered to the
Office of the U.S. Trustee. And, the Debtor will provide Chase Bank
with all other reports and information concerning the Debtor's
business, financial or otherwise, as Chase Bank may from time to
time reasonably request.
The Post-Petition Liens will be subject to the Carve-Out, which is
the sum of:
(a) fees and expenses required to be paid to the Clerk of the
Court and to the U.S. Trustee;
(b) to the extent allowed by the Court on a final basis
pursuant to a final and non-appealable order, all unpaid fees and
expenses incurred by persons or firms retained by the Debtor at any
time before the Termination Date as long as those fees and expenses
do not exceed the amounts designated in the Budget for such fees
and expenses; and
(c) after the Termination Date, the payment of allowed and
unpaid professional fees and expenses incurred by the Case
Professionals in an aggregate amount not to exceed $75,000.
A full-text copy of the Debtor's Motion is available at:
http://bankrupt.com/misc/txwb18-50049-4.pdf
Counsel for JPMorgan Chase Bank, N.A.:
W. Steven Bryant, Esq.
Locke Lord LLP
600 Congress Avenue, Ste. 2200
Austin, Texas 78701
Telephone: (512) 305-4726
Facsimile: (512) 305-4800
Email: sbryant@lockelord.com
About A'GACI, L.L.C.
Founded in San Antonio, Texas, A'GACI, L.L.C. --
http://www.agacistore.com/-- is a fast-fashion retailer of women's
apparel and accessories. A'GACI attracts young, fashion-driven
consumers through its value-pricing and frequent introductions of
new and trendy merchandise. The Debtor operates specialty apparel
and footwear stores under the A'GACI banner as well as a
direct-to-consumer business comprised of its e-commerce website
http://www.agacistore.com/ Stores feature an assortment of tops,
dresses, bottoms, jewelry, and accessories sold primarily under the
Debtor's exclusive A'GACI label. In addition, the Debtor sells
shoes under its sister brand labels of O'Shoes and Boutique Five.
Boutique Five also comprises a portion of apparel and accessory
merchandise.
A'GACI, L.L.C., filed a Chapter 11 petition (Bankr. W.D. Tex. Case
No. 18-50049), on Jan. 9, 2018. The petition was signed by David
Won, manager/CMO. The case is assigned to Judge Ronald B. King.
As of Nov. 25, 2017, the Debtor had $82 million in total assets and
$62 million in total liabilities.
Ian T. Peck, Esq. at Haynes and Boone, LLP serves as the Debtor's
bankruptcy counsel; Berkeley Research Group, LLC as its financial
advisor; and SSG Advisors, LLC, as its investment bankers.
Kurtzman Carson Consultants LLC, is the claims, noticing &
balloting agent and maintains the site http://www.kccllc.net/agaci
An official committee of unsecured creditors has yet to be
appointed in this Chapter 11 Case. Further, no trustee or examiner
has been requested or appointed in this Chapter 11 Case.
ALLIANCE SECURITY: Taps Venable LLP as Special Counsel
------------------------------------------------------
Alliance Security, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Rhode Island to hire Venable, LLP as its
special counsel.
The firm will assist the Debtor in connection with the Federal
Trade Commission's inquiry and potential litigation regarding the
Debtor's telemarketing and credit reporting practices.
Daniel Blynn, Esq., and Eric Berman, Esq., the attorneys who will
be representing the Debtor, will each charge an hourly fee of $575.
The Debtor has agreed to pay the firm a retainer in the sum of
$115,000. The retainer will be replenished back to $115,000 within
seven days if and whenever it reaches $50,000.
Venable does not represent any interest adverse to the Debtor and
its estate, according to court filings.
The firm can be reached through:
Daniel L. Blynn, Esq.
Eric Berman, Esq.
Venable, LLP
600 Massachusetts Avenue, NW
Washington, DC 20001
Tel: +1 202.344.4619 / +1 202.344.4661
Fax: +1 202.344.8300
Email: dsblynn@Venable.com
Email: esberman@Venable.com
About Alliance Security
Based in Warwick, Rhode Island, Alliance Security, Inc. --
http://www.alliancesecurity.com/-- is a security system supplier.
Alliance Security filed for Chapter 11 bankruptcy protection
(Bankr. D. R.I. Case No. 17-11190) on July 14, 2017, estimating its
assets and liabilities at between $1 million and $10 million each.
The petition was signed by Jasjit Gotra, its president and CEO.
Judge Diane Finkle presides over the case.
William J. Delaney, Esq., at The Delaney Law Firm LLC, serves as
the Debtor's bankruptcy counsel.
William K. Harrington, U.S. Trustee for the District of Rhode
Island, on July 27, 2017, appointed three creditors to serve on the
official committee of unsecured creditors in the Chapter 11 case of
Alliance Security, Inc. The Committee hired Robinson & Cole LLP,
as counsel.
ASPEN CONSTRUCTORS: Taps Holland & Hart as Special Counsel
----------------------------------------------------------
Aspen Constructors, Inc., seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to hire Holland & Hart, LLP as
its special counsel.
The firm will represent the Debtor in a case it filed against the
Cincinnati Indemnity Co. and two other companies as a result of
their refusal to provide coverage in connection with an arbitration
demand by West Hallam, LLC and Paul Zimmerman. The case (Case No.
2017CV030085) is still pending before the district court for Pitkin
County.
Holland & Hart will also represent the Debtor in any remaining
litigation related to the arbitration proceeding. While the
arbitration concluded with the entry of a final award against the
Debtor, the award has not yet been confirmed and is pending in the
district court.
Jose Ramirez, Esq., will be the primary attorney in charge of the
Debtor's account with respect to any continued litigation related
to the arbitration proceeding or the Pitkin County case. Mr.
Ramirez bills at a rate of $430 per hour. Other attorneys and
staff assigned to work on the Debtor's account may include
Catherine Crane, Esq., of counsel, who bills at a rate of $310 per
hour.
Holland & Hart does not represent or hold any interest adverse to
the Debtor and its estate, according to court filings.
The firm can be reached through:
Jose A. Ramirez, Esq.
Holland & Hart, LLP
Denver Tech Center
6380 South Fiddlers Green Circle, Suite 500
Greenwood Village, CO 80111
Phone: 303.290.1600 / 303.290.1605
Email: jramirez@hollandhart.com
About Aspen Constructors Inc.
Aspen Constructors, Inc. -- http://aspenconstructors.com/-- is
home builder and high-end commercial general contractor
specializing in luxury mountain homes, commercial and retail
buildings, and custom renovation in Aspen and Snowmass. Aspen
Constructors was founded in 1988 by Michael Tanguay. The company
is headquartered in Aspen, Colorado.
Aspen Constructors sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Colo. Case No. 17-21728) on Dec. 29,
2017. Michael Tanguay, its president, signed the petition.
At the time of the filing, the Debtor estimated assets and
liabilities of $1 million to $10 million.
Judge Elizabeth E. Brown presides over the case. Kutner Brinen,
P.C. is the Debtor's bankruptcy counsel.
AURORA III REALTY: Taps Willis & Wilkins as Legal Counsel
---------------------------------------------------------
Aurora III Realty Group LLC received approval from the U.S.
Bankruptcy Court for the Western District of Texas to hire Willis &
Wilkins LLP as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; assist in the formulation and implementation of a
plan of reorganization; and provide other legal services related to
its Chapter 11 case.
Willis & Wilkins will charge an hourly fee of $375 for its
services. The Debtor has agreed to pay the firm a retainer in the
sum of $5,000.
James Wilkins, Esq., the attorney who will be handling the case,
disclosed in a court filing that he has no business or professional
connections with the Debtor or any of its creditors
The firm can be reached through:
James S. Wilkins, Esq.
Willis & Wilkins LLP
711 Navarro Street, Suite 711
San Antonio, TX 78205-1711
Telephone: (210) 271-9212
Telecopier: (210) 271-9389
About Aurora III Realty Group
Aurora III Realty Group LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. W.D. Tex. Case No. 17-52800) on Dec. 5,
2017. Judge Craig A. Gargotta presides over the case. At the time
of the filing, the Debtor estimated assets of less than $50,000 and
liabilities of less than $500,000.
BADLANDS ENERGY: Ballard Spahr to Continue Representation
---------------------------------------------------------
Badlands Energy, Inc. and its affiliates asked the U.S. Bankruptcy
Court for the District of Colorado to allow their legal counsel to
continue to represent them in their Chapter 11 cases.
The Debtors initially hired Lindquist & Vennum LLP as their legal
counsel, which the court approved on Oct. 10, 2017. On Jan. 1,
Lindquist & Vennum combined with Ballard Spahr LLP, with the latter
continuing as the combined firm.
In their supplemental application, the Debtors asked the court "to
authorize the continued, uninterrupted employment" of Ballard as
their legal counsel and pay these attorneys on an hourly basis for
their services:
Theodore Hartl Partner $495
Mike Richardson Associate $315
Chad Jimenez Associate $285
Ballard continues to hold the pre-bankruptcy retainer of
$39,759.60, which the court approved as part of the initial
application to employ Lindquist & Vennum.
Ballard does not hold or represent any interest adverse to the
Debtors and their estates, according to court filings.
The firm can be reached through:
Theodore J. Hartl, Esq.
Mike S. Richardson, Esq.
Chad Jimenez, Esq.
1225 17th Street, Suite 2300
Denver, CO 80202-5596
Direct: 303.454.0528
Fax: 303.573.1956
E-mail: hartlt@ballardspahr.com
richardsonms@ballardspahr.com
jimenezc@ballardspahr.com
About Badlands Energy
Denver, Colorado-based Badlands Energy, Inc. --
http://badlandsenergy.framezart.com/-- is an E&P company that has
been involved in the Uinta Basin for over a decade. The Company
also operates in California and has been involved in exploration
projects in Wyoming and Nevada.
Initially operating as a public company known as Gasco Energy,
Inc., the Company underwent a restructuring that was completed in
October 2013. This resulted in a recapitalization followed by
taking the company private. The final step in this was a name
change to Badlands Energy, Inc.
Badlands Energy, Inc., Badlands Production Co., Badlands
Energy-Utah, LLC, and Myton Oilfield Rentals, LLC sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case Nos.
17-17465, 17-17467, 17-17469 and 17-17471) on Aug. 11, 2017. The
petitions were signed by Richard Langdon, president and CEO.
Badlands Energy estimated assets at $10 million to $50 million and
liabilities at $50 million to $100 million; Badlands Production's
assets at $1 million and $10 million and liabilities at $10
million to $50 million; Badlands Energy-Utah's assets at $1 million
to $50 million; and Myton Oilfield Rentals' assets at $100,000 to
$500,000 and liabilities at $10 million to $50 million.
The cases are assigned to Judge Kimberley H. Tyson.
The Debtors tapped Lindquist & Vennum LLP as their counsel and
Parkman Whaling LLC as their financial advisor. R2 Advisors, LLC
is the Debtors' consultant.
BENNELL STREET: Case Summary & 8 Unsecured Creditors
----------------------------------------------------
Affiliates that filed voluntary petitions for relief under Chapter
11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Bennell Street Trust Land Trust 18-50065
aka Bennell Street Trust
127 W. Fairbanks Avenue, PMB 242
Winter Park, FL 32789
Newberg Ave Community Trust Land Trust 18-50066
aka Newberg Ave Community Land Trust
127 W. Fairbanks Avenue, PMB 242
Winter Park, FL 32789
Seminole Reserve, LLC 18-50067
127 W. Fairbanks Avenue, PMB 242
Winter Park, FL 32789
Ware County Community Trust 18-50068
aka Ware County Community Trust Land Trust
127 W. Fairbanks Avenue, PMB 242
Winter Park, FL 32789
Coffee County Community Trust Land Trust 18-50069
127 W. Fairbanks Avenue, PMB 242
Winter Park, FL 32789
Grand Port Foundation Trust 18-50070
127 W. Fairbanks Avenue, PMB 242
Winter Park, FL 32789
Type of Debtors: Each of the Debtors is a business trust located
in Georgia and Florida.
Chapter 11 Petition Date: January 12, 2018
Court: United States Bankruptcy Court
Middle District of Georgia (Macon)
Debtors' Counsel: David L. Bury, Jr., Esq.
STONE & BAXTER, LLP
577 Mulberry Street, Suite 800
Macon, GA 31201
Tel: 478-750-9898
Fax: 478-750-9899
E-mail: dbury@stoneandbaxter.com
Assets and Liabilities:
($ in Thousands)
Estimated Estimated
Assets Liabilities
----------- -----------
Bennell Street Trust $100-$500 $100-$500
Newberg Ave Community $100-$500 $100-$500
Seminole Reserve, LLC $100-$500 $100-$500
Ware County Community $1,000-$10,000 $1,000-$10,000
Coffee County Community $100-$500 $100-$500
Grand Port Foundation $1,000-$10,000 $1,000-$10,000
The petitions were signed by Caleb Walsh, trustee.
A full-text copy of Bennell Street Trust Land Trust's petition that
contain, among other items, a list of its eight largest unsecured
creditors is available for free at:
http://bankrupt.com/misc/gamb18-50065.pdf
Newberg Ave Community Trust listed Joshua T. Hale's Lighthouse Law
Firm, LLC as its sole unsecured creditor holding a claim of $2,700.
A full-text copy of the Debtor's petition is available for free at
http://bankrupt.com/misc/gamb18-50066.pdf
A full-text copy of Seminole Reserve, LLC's petition that contain,
among other items, a list of its four largest unsecured creditors
is available for free at:
http://bankrupt.com/misc/gamb18-50067.pdf
A full-text copy of Ware County Community Trust's petition that
contain, among other items, a list of its seven largest unsecured
creditors is available for free at:
http://bankrupt.com/misc/gamb18-50068.pdf
A full-text copy of Coffee County Community Trust Land Trust's
petition that contain, among other items, a list of its six largest
unsecured creditors is available for free at:
http://bankrupt.com/misc/gamb18-50069.pdf
A full-text copy of Grand Port Foundation Trust's petition that
contain, among other items, a list of its four largest unsecured
creditors is available for free at:
http://bankrupt.com/misc/gamb18-50070.pdf
CAPITOL STATION 65: Can Borrow Up to $10MM from Serene Investment
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California
entered an order granting Capitol Station 65, LLC, and affiliates'
motion to approve post-petition financing and grant priming lien.
The Debtors request authorization to borrow up to an aggregate
amount of $10,000,000 from Serene Investment Management, LLC, or
its assigns, as post-petition debtor in possession financing. The
Debtors also request authorization to grant Serene a super-priority
administrative claim and a senior priming lien on substantially all
real and personal property assets, including the real property
comprising the development known as the Township Nine project which
encompasses approximately 65 acres bound by North 5th Street on the
west, North 7th Street on the east, Richards Boulevard on the
south, and the American River on the north.
The Township Nine Property and the Debtors' other personal property
assets are encumbered by a deed of trust held by Township Nine
Avenue, LLC, which is the assignee of Copia Lending, LLC. There is
also additional encumbrance on the Township Nine Property.
Copia opposes the motion and the DIP Loan. Copia filed an initial
opposition on August 15, 2017, and a supplemental l opposition on
Nov. 27, 2017.
Copia objects to the terms of the DIP Loan as "outrageous." The
court disagrees. Copia's objection centers primarily on the DIP
Loan interest rate. Copia appears to complain that the effective
interest rate of 14% (which includes points, 10% otherwise) is too
high given an apparent lack of risk. Copia cites In re Tapang
apparently to suggest that the applicable interest rate of the DIP
Loan should be no more than a 5% cramdown rate.
The Court asserts that Copia's reliance on Tapang is misplaced. The
5% cramdown rate in Tapang is a post-confirmation rate. The rate
here is a post-petition, pre-confirmation rate. There is a
difference in that there is significantly more risk to a
post-petition, pre-confirmation lender than there is to a
post-confirmation lender where risk is diminished by the stability
of a confirmed plan.
There are no better alternatives for the Debtors. The Debtors made
diligent and good faith efforts to obtain post-petition financing
on the best terms possible. The Debtors presented evidence at the
initial August 29, 2017 hearing that they discussed post-petition
debtor in possession financing with numerous other potential
lenders. The Unsecured Creditors Committee also assisted in a
search for other potential lenders. And while other potential
lenders offered the Debtors interest rates between 14% and 18%,
their repayment terms and fees were less favorable than the terms
and fees offered by Serene. The point is, when balanced against
favorable terms, the DIP Loan interest rate does not render the
terms of the DIP Loan "outrageous" as Copia contends. Therefore,
Copia's objection to the DIP Loan on this basis is overruled.
Based on this, the Court grants the Debtors' motion and authorizes
the Debtors to borrow up to an aggregate of $10,000,000 on the
terms set forth in the DIP Credit Agreement.
Serene and/or its assigns will have and are granted a
super-priority administrative claim and a senior and first priority
priming lien on the Debtors’ real and personal property assets
generally and, in particular, on the Township Nine Property.
A full-text copy of the Court's Memorandum and Order dated Jan. 8,
2018 is available at:
http://bankrupt.com/misc/caeb17-23627-333.pdf
About Capitol Station 65
Capitol Station 65 LLC, Capitol Station Holdings LLC, Capitol
Station Member LLC, and Township Nine Owners LLC sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Cal. Case Nos.
17-23627 to 17-23630) on May 30, 2017. Suneet Singal, its chief
executive officer, signed the petitions.
At the time of the filing, the Debtors estimated their assets at
$50 million to $100 million and debts at $10 million to $50
million.
Judge Christopher D. Jaime presides over the cases. Nuti Hart LLP
is the Debtors' legal counsel.
On July 20, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. The Committee hired
Felderstein Fitzgerald Willoughby & Pascuzzi LLP, as counsel.
On August 28, 2017, the Debtors filed a disclosure statement, which
explains their proposed joint Chapter 11 plan of reorganization.
CASHMAN EQUIPMENT: May 23 Hearing on Exclusivity Extension
----------------------------------------------------------
Judge Melvin S. Hoffman of the U.S. Bankruptcy Court for the
District of Massachusetts has granted the Motion for extension of
the exclusivity periods filed by Cashman Equipment Corp. certain of
its affiliates, subject to modifications described at the hearing.
The Court will hold a further hearing on the Debtors' Motion on May
23, 2018 at 10:00 a.m. with any objections which will be filed by
May 18.
The Troubled Company Reporter has previously reported that the
Debtors asked the Court to extend the period during which the
Debtors have the exclusive right to file a plan of reorganization
through and including June 30, 2018, and the period during which
the Debtors have the exclusive right to solicit acceptances of
their plan through and including Aug. 30, 2018.
The Debtors told the Court during the Extension Period, the Debtor:
(a) intend to capitalize on improved market conditions to
increase charter revenue, fleet utilization, and, in some
instances, relocate vessels between locales to respond to differing
market demands;
(b) intend to continue their sales efforts as well as close
the sale of vessels with customers who exercise their options to
purchase under the Purchase Option Charters;
(c) will need to develop detailed multiyear financial
projections, balance sheets and supporting schedules that will
serve as the baseline of their plan of reorganization;
(d) intend to review the claims filed in these cases by the
Dec. 22, 2017 bar date and to attempt to resolve disputed claims;
and
(e) intend to explore the potential for new capital to be
invested into their business upon terms to be reflected in their
plan of reorganization.
The financial projections will include details as to charter and
sale revenues and operating and overhead expenses and, based upon
those projections, tax liabilities in view of the recently enacted
2017 Tax Cut and Jobs Act.
Once the financial projections are finalized, the Debtors intended
to develop term sheets for the re-profiling of the various Lenders'
loans and the repayment terms to unsecured creditors. These
projections and term sheets will be shared with the Debtors' major
creditor constituencies and will likely be the subject of extensive
review and discussions. It is expected that discussions will not
be limited to the Lenders and Committee as a group, but also will
also take place with each of the creditor constituents individually
to address their particular questions and concerns.
Following the completion of those discussions, the Debtors
anticipated to incorporate into their plan and disclosure statement
treatment of creditor claims that, where possible, addresses all
creditor concerns or that otherwise satisfies the requirements to
obtain plan confirmation.
About Cashman Equipment Corp.
Headquartered in Boston, Massachusetts, Cashman Equipment Corp. --
http://4barges.com/-- was founded in 1995 as a barge rental and
marine contracting company with a fleet of 10 barges, 9 of which
were built in the 1950s and 1960s. Cashman Equipment and certain of
its affiliates and subsidiaries own, operate, rent, and sell a
fleet of vessels, including inland and ocean barges, marine
accommodation barges, specialized oil spill recovery barges, and
tugs, as well as marine equipment, such as cranes, accommodation
units, and marine pollution skimmers.
Cashman Equipment and certain of its affiliates and subsidiaries,
Cashman Scrap & Salvage, LLC, Servicio Marina Superior, LLC, Mystic
Adventure Sails, LLC, and Cashman Canada, Inc., filed Chapter 11
petitions (Bankr. D. Mass. Lead Case No. 17-12205) on June 9, 2017.
The petitions were signed by James M. Cashman, the Debtors'
president. Mr. Cashman also commenced his own Chapter 11 case
(Bankr. D. Mass. Case No. 17-12204). The cases are jointly
administered.
Cashman Equipment estimated its assets and debt at between $100
million and $500 million.
Judge Melvin S. Hoffman presides over the cases.
Harold B. Murphy, Esq., and Michael K. O'Neil, Esq., at Murphy &
King, Professional Corporation, serve as Cashman Equipment, et
al.'s counsel. Jeffrey D. Sternklar, Esq., at Jeffrey D. Sternklar
LLC, serves as Mr. Cashman's counsel.
An official committee of unsecured creditors has been appointed in
the case and is represented by Michael J. Fencer, Esq., and John T.
Morrier, Esq., at Casner & Edwards, LLP.
CLEARVIEW SHELDON: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
An official committee of unsecured creditors has not yet been
appointed in the Chapter 11 case of Clearview Sheldon, LLC,
according to a court docket.
Headquartered in Kingston, Washington, Clearview Sheldon, LLC's
principal assets are located at 631 Sheldon Boulevard Bremerton,
Washington. It filed for Chapter 11 bankruptcy protection (Bankr.
W.D. Wash. Case No. 17-15495) on Dec. 21, 2017, estimating its
assets and liabilities at between $1 million and $10 million each.
The petition was signed by Trish Williams, manager. Judge Timothy
W. Dore presides over the case. David Carl Hill, Esq., at Hill
Law, PS, serves as the Debtor's bankruptcy counsel.
CORPORATE RISK: S&P Affirms 'B-' CCR, Outlook Stable
----------------------------------------------------
New York-based employment background screening and investigative
services provider Corporate Risk Holdings LLC has stabilized and
modestly improved its earnings and operating profitability over the
past year, a trend which S&P Global Ratings expects to continue
through fiscal 2018.
S&P Global Ratings is thus affirming its 'B-' corporate credit
rating on Corporate Risk Holdings LLC. The outlook remains stable.
S&P said, "At the same time, we revised our business risk profile
assessment on Corporate Risk Holdings to weak from vulnerable and
raised the anchor on the company to 'b' from 'b-'. We also assigned
a negative capital structure modifier to Corporate Risk Holdings
based on their upcoming 2019 and 2020 debt maturities. This
includes a $60 million revolving credit facility due April 2019
($27.5 million was drawn at the close of fiscal 2017), 9.5% senior
notes due July 2019 ($708.7 million outstanding at the close of
fiscal 2017); and second-lien 13.5% PIK notes due 2020 ($89.9
million outstanding at the close of fiscal 2017). The size and
materiality of these maturities result in a weighted average
maturity profile that is less than two years.
"We also affirmed our 'B-' issue-level rating on the company's $60
million revolving credit facility and 9.5% senior secured notes.
The recovery rating remains '3', indicating our expectation that
lenders would receive meaningful recovery (50%-70%; rounded
estimate: 55%) in a payment default scenario.
"We also affirmed our 'CCC' issue-level rating on the company's
13.5% second-lien PIK notes. The recovery rating remains '6',
indicating our expectation that lenders would receive negligible
recovery (0%-10%; rounded estimate: 0%) in a payment default
scenario."
The affirmation reflects stabilization in the company's operating
performance and earnings growth since its divestiture of Kroll
Ontrack. Over the past year, Corporate Risk Holdings has continued
to expand its earnings and strengthen its credit metrics subsequent
to successful cost savings, operating efficiency, and customer
service initiatives. Top line performance has further benefitted
from favorable economic conditions including stable demand for
background screening and investigative services supported by low
levels of unemployment and increased hiring rates. In fiscal 2017,
the company also repaid a portion of its debt using proceeds
obtained from the sale of Kroll Ontrack, which helped strengthen
its leverage profile and credit metrics. S&P said, "We believe
these favorable trends will continue through fiscal 2018, resulting
in operating metrics that continue to improve such that S&P Global
Ratings' adjusted debt to EBITDA declines to the high-6x area, its
EBITDA margin improves by around 100 basis points (bps), and its
free operating cash flow generation turns positive. Despite
expected improvements, we believe credit metrics will remain
appropriate for the rating over the next 12 months, thus supporting
our affirmation and stable outlook."
The outlook on Corporate Risk Holdings is stable. S&P expects
continued focus on operational improvements coupled with favorable
economic conditions and positive demand drivers to result in an
increase in background screening volumes and usage of risk
consultation services, supporting consistency in revenue and
earnings growth and an improvement in debt to EBITDA to the high-6x
area by the end of fiscal 2018.
S&P said, "We could consider an upgrade if the company maintains
leverage such that total adjusted debt to EBITDA is consistently
below 7x and FFO to debt is in the high-single-digit percent area
on a weighted-average (considering current and future performance)
basis. An upgrade would also be contingent upon the company's
ability to successfully refinance its 2019 maturities. In addition,
owners and management would need to demonstrate a commitment to
maintaining leverage at these improved levels.
"We could lower the ratings over the next year if it becomes
unlikely the company will be able to refinance maturing debt
because credit markets have tightened or operating performance has
unexpectedly deteriorated. This would result in a situation where
free cash flow becomes negative and leverage increases to levels
that we deem unsustainable. A decline in operational performance
could stem from negative publicity, a major security breach or
other form of unforeseen reputational damage, or a sudden spike in
U.S. unemployment rates."
CRAPP FARMS: Taps Tim Slack as Auctioneer
-----------------------------------------
Crapp Farms Partnership received approval from the U.S. Bankruptcy
Court for the Western District of Wisconsin to hire Tim Slack
Auction & Realty, LLC, as auctioneer.
The firm will assist the Debtor in marketing, preparing for and
conducting the auction sale of its cow herd and hog herd. It will
be paid a commission of 3.5% of the proceeds from the auction.
Timothy Slack, principal of Tim Slack Auction, disclosed in a court
filing that his firm is a "disinterested person" as defined in
section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Timothy A. Slack
Tim Slack Auction & Realty, LLC
10126 Circle Road
Lancaster, WI 53813
Phone: 608-723-4020
Fax: 608-723-5020
E-mail: slackauc@tds.net
About Crapp Farms Partnership
Crapp Farms Partnership is a large farming operation that includes
growing and selling crops, raising livestock, and providing farm
trucking and excavating services to third-party customers. The
farming operation is located in Potosi, Wisconsin.
Crapp Farms sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Wis. Case No. 17-11601) on May 3, 2017. The
petition was signed by Darell C. Crap, partner. At the time of the
filing, the Debtor estimated its assets and debt at $10 million to
$50 million.
The case is assigned to Judge Catherine J. Furay.
The Debtor tapped J. David Krekeler, Esq., Eliza M. Reyes, Esq.,
Jennifer M. Schank, Esq., Kristin J. Sederholm, Esq., at Krekeler
Strother, S.C., as Chapter 11 counsel.
On June 5, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. The committee is
represented by Matthew E. McClintock, Esq., at Goldstein &
McClintock, LLLP.
CSP ASSET II: Taps Ridout Barrett as Accountant
-----------------------------------------------
CSP Asset II, LLC seeks approval from the U.S. Bankruptcy Court for
the Western District of Texas to hire Ridout, Barrett & Co., P.C.,
as its accountant.
The firm will provide bookkeeping services and will prepare the
Debtor's monthly financial statements and prepare its quarterly
Texas sales and use tax returns for a fixed fee of $3,250 per
month.
Ridout will also assist the Debtor in preparing its federal income
tax return on IRS form 1065 for $5,500 per year; and margin tax
return for $550 per year.
Additional services will be charged at an hourly rate of $115 to
$225.
Michael Herbert, an accountant employed with Ridout, disclosed in a
court filing that his firm is a "disinterested person" as defined
in section 101(14) of the Bankruptcy Code.
Ridout can be reached through:
Michael Herbert
Ridout, Barrett & Co., P.C.
3305 Northland Dr., Suite 100
Austin, TX 78731
Phone: (512) 454-6010
Fax: (512) 454-3494
About CSP Asset II LLC
Based in Austin, Texas, CSP Asset II LLC, which conducts business
as Secured Climate Storage, operates a self-storage facility built
to provide storage security for individuals and businesses. This
climate and non-climate controlled facility has more than 1,200
units and sizes up to 3,200 square feet. CSP Asset II is also an
authorized U.S. postal center and FedEx Ship center.
CSP Asset II sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Tex. Case No. 17-11513) on Dec. 5, 2017. James
R. Carpenter, manager of its sole member, signed the Chapter 11
petition.
At the time of the filing, the Debtor estimated assets and
liabilities of $10 million to $50 million.
Judge Tony M. Davis presides over the case. Barron & Newburger, PC
is the Debtor's legal counsel.
DIAGNOSTIC CENTER: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Diagnostic Center of Medicine (Allen) LLP
3012 S Durango Drive Ste 2
Las Vegas, NV 89117
Type of Business: Diagnostic Center of Medicine (Allen) LLP, in
practice since 1977, is an internal medicine and
family medicine group in Southern Nevada with
locations in Henderson and Durango. The
Diagnostic Center of Medicine's laboratory is
licensed by the State of Nevada's Department of
Health and Human Services, Division of Health,
Bureau of Health Care Quality and Compliance.
Visit http://dcomnv.comfor more information.
Chapter 11 Petition Date: January 12, 2018
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Case No.: 18-10152
Judge: Hon. Laurel E. Davis
Debtor's Counsel: Bryan A. Lindsey, Esq.
SCHWARTZ FLANSBURG PLLC
6623 Las Vegas Blvd. So.,, Ste 300
Las Vegas, NV 89119
E-mail: bryan@nvfirm.com
- and -
Samuel A. Schwartz, Esq.
SCHWARTZ FLANSBURG PLLC
6623 Las Vegas Blvd. So., Ste 300
Las Vegas, NV 89119
Tel: (702) 385-5544
Fax: (702) 385-2741
E-mail: sam@nvfirm.com
Total Assets: $1.70 million
Total Debts: $6.08 million
The petition was signed by Lawrence M. Allen, M.D., Prof. Corp.,
chief executive officer.
A full-text copy of the petition, along with a list of the Debtor's
20 largest unsecured creditors, is available for free at
http://bankrupt.com/misc/nvb18-10152.pdf
DOOMAWENDSCHUH LLC: Seeks February 8 Plan Filing Extension
----------------------------------------------------------
Doomawendschuh, LLC, asks the U.S. Bankruptcy Court for the
Southern District of Florida for an extension of the exclusive
period, through and including, requests the entry of an Order
extending its exclusive periods to Feb. 8, 2018 for filing a Plan
and Disclosure Statement, and to April 6, 2018 for obtaining
acceptances or rejections of the Plan.
The Debtor relates that by the Court's Order dated Aug. 8, 2017,
the Debtor's case was dismissed without prejudice due to a clerical
error. The original claims bar date was Nov. 9. The case was
reinstated on Aug. 22, 2017 and the reinstated bar date became Dec.
27. On Dec. 26, various parties filed proofs of claim.
However, on Dec. 22, 2017 counsel for the Debtor filed a Notice of
Unavailability from Dec. 26, 2017 through Jan. 5, 2018. Due to
inclement weather in the east, the Debtor's counsel's travel plans
were severely disrupted.
The Debtor asserts that it has been diligently working towards
developing and filing a Plan and Disclosure Statement, but has been
impeded by extrinsic developments, including finalization of the
agreements for projects with which to fund the plan. The claims bar
date's extension made any realistic planning futile. Finally, the
holidays and disrupted travel schedule has further delayed the
Debtor's ability to formulate an appropriate plan and disclosure
statement.
Throughout the relevant time period, and even prior to the petition
date, the Debtor has reached out and attempted in good faith to
negotiate a plan with the various significant parties in interest.
About Doomawendschuh LLC
Headquartered in Miami, Florida, Doomawendschuh, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No.
17-18495) on July 6, 2017, estimating its assets and liabilities at
between $100,001 and $500,000 each. Aleida Martinez Molina, Esq.,
at Weiss Serota Helfman Cole & Bierman, P.L., serves as the
Debtor's bankruptcy counsel.
James E. McDonald, P.A. and Rovens Lamb, LLP serve as special
litigation counsel.
An official committee of unsecured creditors has not yet been
appointed in the Chapter 11 case of Doomawendschuh, LLC.
DUPREE FARMS: Case Summary & 16 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Dupree Farms, LLC
1308 Pearidge Road
Angier, NC 27501
Type of Business: Dupree Farms is a third generation family farm
located in Angier, North Carolina on the edge of
Harnett, Wake, and Johnston counties. The farm
is owned and operated by Roger Dupree and his
son Nicholas Dupree. Dupree Farms offers
sweet potatoes, soybeans, tobacco, and wheat.
Visit http://dupreefarms.comfor more
information.
Chapter 11 Petition Date: January 16, 2018
Court: United States Bankruptcy Court
Eastern District of North Carolina
(Raleigh Division)
Case No.: 18-00216
Judge: Hon. Joseph N. Callaway
Debtor's Counsel: Richard D Sparkman, Esq.
RICHARD D. SPARKMAN & ASSOCIATES, P.A.
P.O. Drawer 1687
Angier, NC 27501
Tel: 919 639-6181
E-mail: rds@sparkmanlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Nicholas H. Dupree, member/manager.
A full-text copy of the petition that contains, among other items,
a list of the Debtor's 16 largest unsecured creditors is available
for free at http://bankrupt.com/misc/nceb18-00216.pdf
EAST GRAND PREPARATORY: S&P Alters Outlook on 2016A/B Bonds to Neg.
-------------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable on
New Hope Cultural Education Facilities Finance Corp., Texas' series
2016A tax-exempt revenue bonds and series 2016B taxable revenue
bonds, issued for Cityscape Schools Inc. d.b.a. East Grand
Preparatory (EGP). At the same time, S&P Global Ratings affirmed
its 'BB+' rating on the bonds.
"The outlook revision reflects our view of deterioration in certain
financial profile metrics, specifically lower-than-projected
liquidity levels and thin maximum annual debt service coverage,"
said S&P Global Ratings credit analyst Brian Marshall.
The 'BB+' rating reflects our view of the school's:
-- Healthy enterprise profile supported by positive enrollment
trends, in part due to the appeal of the academy's academic scores
relative to the local market and proximity and participation in the
economy of Dallas, a major metropolitan center;
-- Experienced management team with strong education backgrounds;
and
-- No additional debt plans in the near term.
Partly offsetting the above strengths, in S&P's view, are:
-- The school's high debt burden;
-- Financial profile metrics that are currently inconsistent with
the rating level, but are projected to improve over the outlook
horizon; and
-- Risk, as with all charter schools, that the school can be
closed for nonperformance of its charter or for financial distress
before final maturity of the bonds.
The series 2016 A and B bonds are secured by pledged revenues,
which are defined as all revenues or income derived from EGP, the
charter school operated by Cityscape Schools pursuant to the loan
agreement.
S&P said, "The negative outlook reflects our opinion of EGP's
deterioration in certain financial profile metrics, including weak
lease-adjusted maximum annual debt service (MADS) coverage and
thinner liquidity relative to rating medians and peers. We expect
that the school's demand profile will continue to reflect steady
enrollment and good academics, comparable with the rating level."
S&P could consider a negative rating action should enrollment drop,
or if fiscal 2018 audited results and beyond do not show
significant improvement in line with current projections, thereby
leading to MADs coverage and liquidity that are consistent or
weaker than current levels in fiscal 2017.
Conversely, S&P could revise the outlook to stable if full-accrual
operating performance resulted in substantially improved MADS
coverage and days' cash on hand at fiscal 2018 year-end.
ECLIPSE BERRY: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Affiliates that filed voluntary petitions for relief under Chapter
11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Eclipse Berry Farms, LLC 18-10443
11812 San Vicente Blvd, Ste 250
Los Angeles, CA 90049
Harvest Moon Strawberry Farms, LLC 18-10453
11812 San Vicente Blvd, Suite 250
Los Angeles, CA 90049
Rosalyn Farms, LLC 18-10464
11812 San Vicente Blvd, Suite 250
Los Angeles, CA 90049
Type of Business: Founded in 1999, Berry Eclipse Farms operates
farms that produce berry products. The company
is based in Los Angeles, California.
Chapter 11 Petition Date: January 16, 2018
Court: United States Bankruptcy Court
Central District of California (Los Angeles)
Judge: Hon. Barry Russell
Debtors' Counsel: Kevin H Morse, Esq.
SAUL EWING ARNSTEIN & LEHR LLP
161 N. Clark Street, Suite 4200
Chicago, IL 60601
Tel: 312-876-7122
Fax: 312-876-6273
E-mail: kevin.morse@saul.com
Debtors'
Financial
Advisor: MURRAY WISE CAPITAL LLC
Estimated Assets and Liabilities:
Assets Liabilities
---------- -----------
Eclipse Berry Farms $10 mil.-$50 million $50 mil.-$100 million
Harvest Moon $0-$50,000 $0-$50,000
Rosalyn Farms $0-$50,000 $0-$50,000
The petitions were signed by Robert Marcus, chief restructuring
officer.
Full-text copies of the petitions is available for free at:
http://bankrupt.com/misc/cacb18-10443.pdf
http://bankrupt.com/misc/cacb18-10453.pdf
http://bankrupt.com/misc/cacb18-10464.pdf
List of Eclipse Berry Farms, LLC's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Advance Plant Nutrition LLC $277,805
2888 Estates Drive
Aptos, CA 95003
AG RX, Inc. $350,051
751 South Rose Avenue
Oxnard, CA 93030
Alex Camany $212,242
18825 Heritage CT.
Salinas, CA 93908
Armstrong Transport Group Inc. $673,042
PO Box 560687
Charlotte, NC
28256-0687
BNSF Logistics, LLC $524,465
2710 S. 48th Street
Springdale, AR 72762
C H Robinson Worldwide Inc. $170,073
Cal-Tex Transportation, LLC $251,258
PO Box 107
Visalia, CA 93291
Central Cold Storage $163,831
PO Box 742352
Los Angeles, CA
90074-2352
Coastal Cooling & $1,463,700
Logistics, LLC
P.O. Box 1338
Fremont, CA 94538
Coastal Growers Supply, Inc. $373,066
1450 Soloman Road
Santa Maria, CA 93455
Crop Production Services (649) $1,730,702
P.O. Box 657
Salinas, CA 93902
Georgia-Pacific Corrugated LLC $865,943
Attn: P.O. Box 743348
1000 W Temple St.
Los Angeles, CA 90012
Golden Four Express, LLC $269,474
c/o Crecia Sue Plaugher
13287 El Nogal Ave
Visalia, CA 93292
Jerue Truck Broker, Inc. $2,283,334
PO Box 33080
Lakeland, FL 33807
RDO Water LLC $148,461
10108 Riverford Road
Lakeside, CA 92040
Robert Mann Packaging, Inc. $5,997,905
1051 S. Rose Avenue
Oxnard, CA 93030
TCI Business Capital, Inc. Arora $522,165
9185 Paysphere Circle Transportation
Chicago, IL 60674
TRI Cal Inc. $3,044,117
8100 Arroyo Circle
Gilroy, CA 95020
Unified Carriers $179,015
Ventura Strawberry Farms, Inc. $8,000,0000
5000 N. Parkway Calabasas
Suite 107
Calabasas, CA
91302
ENERGIZER HOLDINGS: Moody's Puts Ba2 CFR on Review for Downgrade
----------------------------------------------------------------
Moody's Investors Service placed the ratings for Energizer
Holdings, Inc. under review for downgrade. This follows Energizer's
announced $2.0 billion debt financed acquisition of Spectrum
Brands' global battery and portable lighting business. The closing
of the acquisition, which is subject to customary regulatory
approvals, is expected to occur in late 2018.
Ratings placed under review for downgrade:
Energizer Holdings, Inc.
Corporate Family Rating at Ba2
Probability of Default Rating at Ba2-PD
$350 million senior secured revolving credit facility expiring
2020 at Baa3 (LGD 2)
$400 million senior secured term loan B due 2022 rated Baa3 (LGD
2)
$600 million senior unsecured global notes due 2025 rated Ba3 (LGD
5)
Affirmations:
Speculative Grade Liquidity Rating, Affirmed SGL-1
Moody's review will focus on: (1) details of the financing; (2)
cash flow expectations and deleveraging plans; (3) underlying
operating trends for both companies; and (4) Energizer's commitment
to reducing share repurchases and acquisition activity in order to
focus on debt repayment.
RATINGS RATIONALE
Setting aside Energizer's announced acquisition of the Spectrum
battery business, Energizer's Ba2 Corporate Family Rating (CFR)
reflects the company's moderate financial leverage with debt to
EBITDA under 4 times, its moderate scale relative to other more
diversified consumer packaged goods companies, and concentration in
the declining battery product category. The battery category is
facing a slow secular decline as consumer products are increasingly
evolving toward rechargeable technologies. The battery business is
also becoming increasingly commoditized, rendering the category
highly promotional. The rating is supported by the company's strong
brand recognition in batteries and car fragrances. The rating also
reflects the company's leading market position in specialized
batteries, good geographic diversification with sales in over 140
countries, and strong cash flow.
Energizer Holdings, Inc. ("Energizer") manufactures and markets
batteries, lighting products and car fragrance and appearance
products around the world. Roughly 50% of sales come from the U.S.,
and the remainder from over 140 international markets. The product
portfolio includes household batteries, specialty batteries,
portable lighting equipment and various car fragrance dispensing
systems. The company generates approximately $1.8 billion in annual
revenues
The principal methodology used in these ratings was Global Packaged
Goods published in January 2017.
ENERGIZER HOLDINGS: S&P Alters Outlook to Neg. & Affirms 'BB' CCR
-----------------------------------------------------------------
Energizer Holdings Inc. announced it is acquiring Spectrum Brands'
global battery and portable lighting business for $2 billion. S&P
estimates adjusted debt to EBITDA will weaken to the low-5x area
from the mid-2x area pro forma for the transaction.
S&P Global Ratings revised its outlook on St. Louis, Mo.–based
Energizer Holdings Inc. to negative from positive and affirmed the
'BB' corporate credit rating.
S&P said, "At the same time, we placed our 'BB' issue-level rating
on Energizer's $600 million senior unsecured notes due 2025 on
CreditWatch with negative implications. The recovery rating on the
notes remains '3', indicating our expectation of meaningful
recovery (50%-70%; rounded estimate 50%) in the event of a default.
We will resolve the CreditWatch placement once we have greater
clarity regarding the funding plans.
"Pro forma for the transaction, we estimate total debt outstanding
is about $3 billion.
"The outlook revision to negative reflects the expected
deterioration of Energizer's credit metrics due to its proposed
acquisition of Spectrum Brands' global battery and portable
lighting business, which it will finance primarily with new debt.
We estimate pro forma adjusted debt to EBITDA will increase to the
low-5x area compared to the mid-2x area by the end of fiscal year
2017."
The negative outlook reflects the pro forma credit metric
deterioration that will result from the proposed transaction, the
inherent integration risks, and the risk that Energizer may not be
able to restore credit ratio to levels sufficient to maintain the
rating.
S&P said, "We could revise the outlook to stable if the company
successfully integrates Spectrum Brands' global battery and
portable lighting business and realizes cost synergies as planned,
and continues to strengthen credit metrics, including improving
adjusted debt to EBITDA below 4x through a combination of EBITDA
growth and debt reduction. An outlook revision to stable also
requires our continued belief that the company is committed to
prioritizing debt repayment over acquisition and shareholder
distribution. We would also likely affirm ratings if deal does not
occur.
"We could lower the ratings if there's unexpected operating
missteps in the integration, leading to weaker profitability and
cash flows and adjusted debt to EBITDA sustained at or above the
mid-4x area. This large acquisition will take time to absorb and
unexpected integration difficulties could weaken the company's
earnings growth and cash flows, possibly delaying deleveraging.
This could also happen if the secular decline in the battery
segment accelerates, if competition from Duracell or private label
increases, if the combined entity experiences customer losses, or
if there is an economic downturn."
ENERGY TRANSFER: Asset Sale Neutral to Ratings, Fitch Says
----------------------------------------------------------
Fitch Ratings believes the transactions announced by Energy
Transfer Partners, LP (ETP; 'BBB-'/Stable) and Energy Transfer
Equity, LP (ETE; 'BB'/Stable) on Jan. 16 to be neutral to the
ratings and outlooks of both entities. Fitch believes the deals to
be generally positive from a deleveraging and cash flow perspective
for both entities, particularly for ETP.
ETP and ETE announced deals whereby ETP will contribute its CDM
Resource Management LLC and CDM Environmental & Technical Services
LLC subsidiaries (collectively CDM) to USA Compression Partners, LP
(USAC) and ETE will purchase USAC's general partner. As part of the
transactions ETP will contribute CDM to USAC in exchange for $1.225
billion in cash, 19.2 million common units and 6.4 million class B
common units, which will not receive quarterly cash distributions
for the first four quarters following the close of the deal and
will convert on-to-one into regular common units after that time.
ETE will acquire the ownership interests in the general partner of
USAC and approximately 12.5 million USAC common units from USA
Compression Holdings for $250 million. ETE has then agreed to
cancel the incentive distribution rights of, and convert the
general partner interest in, USAC to a non-economic general
partnership interest in exchange for 8.0 million common units.
Additionally, USAC management indicated on the call announcing the
deal that ultimately USAC will repurchase its GP interest from
ETE.
For ETP, the transaction is generally positive in that it helps
raise needed capital and reduce leverage, but does not impact the
entity's current 'BBB-' Issuer Default Rating or Stable Outlook.
ETP plans to use the approximately $1.225 billion in cash proceeds
that it will receive in connection with the transactions to reduce
leverage. The compression assets being sold are not a strategic
focus for ETP's going forward, and while roughly $160 million to
$170 million in 2018 EBITDA will be lost from the sale the multiple
received on the assets is strong and the common unit component of
the transaction will allow ETP to retain some economic interest in
the assets future performance. Additionally, future sales of the
units could provide another capital raising vehicle for ETP, if
needed.
However, Fitch continues to expect significant deleveraging in 2018
and into 2019 for ETP, as a result of this transaction, a recent
preferred equity offering, the sales of interests in Rover Pipeline
and Dakota Access Pipeline and the expected completion of several
large scale projects including Rover Pipeline, Mariner East 2,
Revolution Pipeline system and LoneStar Frac V, which are all
expected to be in service by 2019. Fitch typically looks for
leverage below 5.0x on a sustained basis for large, diversified
midstream issuers and believes ETP will achieve those metrics in
2018 and beyond. Additional concerns include construction and
regulatory risks, volumetric risks, structural subordination to
subsidiary debt, and uncertainties resulting from potential future
structural changes.
For ETE, Fitch views the transaction as being neutral to ETE's
ratings, but positive in the sense that it helps provide funding to
ETP, which is expected to provide the majority of cash up to ETE
for the foreseeable future. Fitch believes any gross debt from the
price paid for the GP interest should be offset by the economic
value generated from common distributions and not have a leveraging
impact to ETE, on a deconsolidated leverage basis, which Fitch
calculates as ETE debt divided by distributions received from
subsidiaries less ETE-level operating expenses.
ETE's credit profile remains more closely linked to ETP, its most
significant cash flow providing subsidiary. ETE has been a
supportive sponsor committed to providing ETP with incentive
distribution right waivers previously given to ETP totalling over
$930 million through 2019, which will help support liquidity needs
at ETP. ETP's incentive distribution payments to ETE will increase
significantly in 2018 as some of the previously provided waivers
roll off. These incentive distribution payments increase the equity
cost of capital, which already high, and can be prohibitive to
growth spending and ETP's ability to access equity markets as a
capital source. While these payments are not expected to be overly
burdensome for the ETP near term, Fitch believes they could provide
a catalyst for further interfamily transactions.
Inclusive of this transaction, Fitch projects ETE's leverage should
improve to below 4.0x in 2018 as the waivers provided ETP begin to
decrease. Capital needs at the ETE level are limited, operating and
interest expenses are generally low, and ETE maturities are
manageable in the near term, with no maturities on any debt at ETE
until late 2020, providing ETE time for improvement in the credit
profiles of and distribution payments from its subsidiaries.
The announced transactions are expected to close during the first
half of 2018, subject to customary closing conditions.
ENERGY TRANSFER: S&P Affirms 'BB-' CCR, Outlook Stable
------------------------------------------------------
S&P Global Ratings said it affirmed its 'BB-' corporate credit
rating on Energy Transfer Equity L.P. (ETE). The outlook is stable.
S&P said, "We also affirmed our 'BB-' rating on the company's
senior secured debt. The '4' recovery rating on the senior secured
debt is unchanged and indicates our expectation for average
(30%-50%; rounded estimate: 45%) recovery if a default occurs."
S&P said, "The rating action reflects our view that the proposed
transaction will not materially affect ETE's stand-alone credit
measures. We estimate that the acquisition will result in
stand-alone debt to EBITDA (defined as distributions from its
subsidiaries minus general and administrative expenses) of about
3.2x in 2018, compared to our previous forecast of about 3x. We
expect ETE's interest coverage ratio to continue to be in the 6x
area. We also think ETP's sale of its non-core compression business
and having USA on a path to become a fully independent partnership
is a positive step for the Energy Transfer enterprise, which could
lead to lower consolidated leverage and could be more supportive of
a less complex corporate structure over time.
"We analyze ETE as a pure-play general partnership (GP), reflecting
its 100% ownership of ETP's and Sunoco L.P.'s GPs and incentive
distribution rights (IDRs), and Lake Charles LNG.
"We typically rate GPs of MLPs two to five notches below the
weighted average corporate credit rating of the MLPs when they do
not constitute a group, as is the case with ETE. The number of
notches between our rating on the GP and our rating on the MLP
reflect how we assess (positive, neutral, negative, or very
negative) certain characteristics such as cash flow interruption
risk, stand-alone debt leverage, and cash flow diversity.
"The stable rating outlook on ETE reflects our expectation for the
distribution payments it receives due to its ownership interests in
its operating subsidiaries to remain steady and that stand-alone
debt to EBITDA will be about 3.2x in 2018. We base this view on our
expectation that ETE will generate higher EBITDA as the IDR
subsidies it provides to ETP roll off and ETP's organic projects
are placed in service. We also expect ETE to use excess cash flow
that it retains to repay revolver debt over time.
"Absent a downgrade of ETP, we could lower the ratings on ETE if it
sustained stand-alone debt to EBITDA above 4x or if it pursued
large acquisitions that do not improve the business risk at its
operating subsidiaries or its consolidated cash flow profile.
"Apart from an upgrade of ETP, we are not contemplating higher
ratings on ETE, absent a materially more conservative financial
policy, such that we were highly confident that ETE's stand-alone
debt to EBITDA would be sustained below 2x. However, we are not
contemplating a higher rating on ETE for the next 12-18 months,
given how we view the current corporate structure."
EQUINIX INC: Fitch Affirms 'BB' Long-Term IDR; Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Equinix, Inc.'s Long-Term Issuer Default
Rating (IDR) at 'BB'. The Rating Outlook is Stable. Fitch's
affirmation affects approximately $7 billion of total unsecured
notes.
Fitch's ratings and Outlook are supported by Equinix's leading
market position as a global data center colocation operator,
geographically diverse and network-dense footprint, secular demand
drivers for data center outsourcing, high levels of recurring
revenue and stable customer base. Through both organic expansions
and acquisitions, Equinix is competitively positioned in the
Americas, EMEA, and Asia-Pacific as the acquisitions have
significantly expanded Equinix's footprint in EMEA, Asia-Pacific,
and Latin America markets.
Fitch expects Equinix to finance the recently announced Metronode
(Australia) acquisition with cash on balance sheet. The addition of
Metronode significantly enhances Equinix's presence in Australia
and further expands its footprint in Asia-Pacific. It also
reinforces Equinix as a globally connected data center network as
Metronode's Perth site in Western Australia will serve as the
landing station for an Australia-Singapore cable, adding to
Equinix's existing submarine cable deployments in Sydney. The
addition of Metronode also improves Equinix's unencumbered asset
coverage as Metronode owns 90% of the data centers, a higher
proportion than Equinix's existing ownership.
Rating constraints include negative FCF resulting from capital
intensity and required REIT dividends, modest deleveraging over the
rating horizon, and low unencumbered asset coverage. Acquisition
funding is also a consideration, but Equinix's recent acquisitions
have been funded with a balanced equity and debt financing
structure. Fitch would view a continuation of this trend
favorably.
KEY RATING DRIVERS
Global Data Center Operator: Fitch views Equinix's global network
of data centers as a differentiator, providing it with substantial
barriers to entry that compound with every new customer added.
Equinix's current footprint of 190 data centers, representing 19.4
million square feet, extends over five continents, twenty four
countries, and forty eight metro areas. This footprint was
established through both organic and inorganic means, with
approximately $5.6 billion spent on acquisitions and $3.1 billion
spent on expansion CapEx since 2013. Fitch expects Equinix to
remain acquisitive over the forecast period, albeit to a lesser
degree than recent years as its footprint already covers major
markets.
Growth Investments Constrain FCF: Fitch expects Equinix to continue
to generate negative FCF over the rating horizon attributed to
required REIT dividend and significant growth CapEx spending. The
deficits will require Equinix to be dependent on capital markets
for funding over the forecast period. Fitch takes into
consideration the strong profitability, as demonstrated by the 13%
FCF margins (LTM 3Q 2017) generated when excluding growth CapEx.
Fitch does not expect these margins to be realized until growth
begins to moderate, which is not expected over the rating horizon.
Demand Growth and Stable Model: The global data center market is
expected to grow at a double-digit pace over the next several years
driven by the increasing outsourcing of IT infrastructure and
growth in cloud computing. Fitch believes the trend is still in an
early phase and will continue through Fitch forecast period.
Approximately 95% of Equinix's revenue is recurring and customers
generally enter into multi-year service contracts. Fitch believes
these factors provide for a high degree of predictability in
Equinix's organic financial outlook.
Diversified Customer Base: Equinix serves a diverse set of
customers and industry verticals. During 3Q17, its largest customer
contributed 3.7% of total recurring revenues while the top-10
customers represented approximately 18% of recurring revenues. The
diversity of industry verticals that Equinix serves further
diversifies risks. Importantly, the company has higher exposure to
higher growth verticals including Cloud and IT Services, and
Network verticals with revenue contributions of 28% and 24%,
respectively.
Limited Contingent Liquidity: Equinix's ratings are constrained by
the data center properties being a less-than-mature asset class
within the REIT. Despite the company's strong access to capital,
the availability of mortgage capital for data centers is not as
deep compared with other commercial real estate properties,
limiting the sources of contingent liquidity. Fitch believes data
centers have a less liquid investment market with fewer potential
buyers compared with other real estate assets, making these assets
potentially more difficult to divest or borrow against in a
depressed market. Equinix's contingent liquidity is also limited by
relatively low ownership of the data center facilities where it
operates. This limits the data centers' ability to serve as a
source of contingent liquidity.
DERIVATION SUMMARY
The ratings and Outlook are supported by Equinix's leading market
position in data center colocation, geographically diverse and
network-dense footprint, secular demand drivers for data center
outsourcing, high levels of recurring revenue, and stable customer
base. The company operates within the data center value chain that
includes wholesalers such as Digital Realty Trust, colocation data
centers, and managed IT services such as Rackspace Hosting. Equinix
is primarily focused on the colocation data center segment
differentiated by its global footprint and interconnectivity that
cater to large enterprises. Through both organic expansions and
acquisitions, Equinix is competitively positioned in the Americas,
EMEA, and Asia-Pacific as the acquisitions have significantly
expanded Equinix's footprint in EMEA, Asia-Pacific, and Latin
America markets.
The secular demand growth for data center is driven by enterprises
migrating from on-premise data centers to colocation data centers
that provide higher reliability and greater efficiency. The growing
adoption of cloud services also lead to more data traffic and
workloads to be placed onto data centers. Equinix's interconnected
data centers that are strategically located in major markets
globally are well-positioned to benefit from these continuing
trends.
The company has strong financial flexibility with its balanced
capital structure through both the equity and debt capital markets
and through its primarily unsecured debt structure. In addition to
debt issuance, Equinix issued over $2 billion in equity during
2017, reducing its reliance on the debt capital market. The company
has also converted its debt structure to all unsecured during 2017.
Fitch believes these factors have enhanced Equinix's financial
flexibility.
Rating constraints include negative FCF resulting from capital
intensity and required REIT dividends, modest expected deleveraging
over the rating horizon, competitive nature of the data center
industry and low unencumbered asset coverage. Acquisition funding
is also a consideration, but, Equinix's recent acquisitions have
been funded with a balanced equity and debt financing structure.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
-- Revenue growth ranging from low-teens to high teens influenced
by acquisition activities;
-- EBITDA margin expanding from 47.1% to 49.1% through Fitch
forecast period, primarily driven by larger scale;
-- Acquisition activities decline to $300 million per year in
2019-2020, lower than recent years with fewer large
acquisitions.
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
-- Fitch's expectation of rent-adjusted gross leverage sustaining
below 4.0x (currently 5.5x);
-- Unencumbered asset coverage of about 1.5x (currently 1.1x);
-- Increased mortgage lending activity in the data center sector,
demonstrating contingent liquidity for the asset class;
-- Continuation of financial policies less reliant on debt
funding for growth capex and acquisitions, potentially with
higher proportion of equity funding.
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
-- Fitch's expectation of rent-adjusted gross leverage sustaining
above 5.0x;
-- Unencumbered asset coverage below 1x;
-- Debt-financed acquisitions that increase leverage or dilute
margins; financial impact will be considered in the context of
strategic rationale;
-- Increased liquidity risk, potentially resulting from limited
revolver availability as debt maturities approach.
LIQUIDITY
Fitch believes that negative FCF over the rating horizon will cause
Equinix to rely on external funding to support its liquidity needs.
Pro forma for its new credit facility, the company had $1.9 billion
available under its $2 billion revolver (3Q 2017). Required REIT
dividend distributions limit Equinix's ability to add meaningfully
to its cash balance of $838 million of cash, cash equivalents and
short-term investments (($1.6 billion at end-3Q 2017, pro forma for
the $792 million Metronode acquisition) without accessing capital
markets.
While other REITs can often leverage unencumbered assets to address
liquidity needs, Equinix's data centers are mostly leased, limiting
sources of contingent liquidity. Its owned facilities, however, are
mainly in top global markets, which should imply a lower
capitalization rate in a sale or financing. As of 3Q17, Equinix's
owned assets generated approximately 43% of recurring revenue (62
of 190 data centers). Fitch believes the mortgage market for data
center assets is not as deep or liquid relative to other more
established commercial real estate property classes, which may
limit the ability to raise contingent liquidity using these
assets.
FULL LIST OF RATING ACTIONS
Fitch affirms Equinix, Inc.'s ratings as follows:
-- Long-Term IDR at 'BB'; Outlook Stable;
-- Senior unsecured notes at 'BB/RR4'.
Fitch is also withdrawing the ratings assigned to the company's
repaid senior secured debt obligations.
FAMILY FOR LIFE: Court Denies Plan Exclusivity Extension
--------------------------------------------------------
The Hon. Arthur I. Harris of the U.S. Bankruptcy Court for the
Northern District of Ohio sustained the opposition of Woodland Real
Estate Holdings, LLC, and denied Family for Life Foundation's
motion for an order to extend the exclusive periods in which to
propose a Chapter 11 plan of reorganization and solicit acceptances
of such Plan.
The Troubled Company Reported has previously reported that the
Debtor asked the Court to extend its exclusive periods to file a
Chapter 11 plan of reorganization and to solicit acceptances of the
plan of reorganization to March 12 and May 12, 2018, respectively.
Since the Petition Date, the Debtor has been actively working to
restore its business. The Debtor, with court approval, entered into
a new lease, and has been working to increase revenue and
streamline its operations. Because of the new lease, and the
attendant business disruptions, the Debtor is not in a position to
propose a meaningful plan.
The Debtor said that there are still many things that need to
happen before the Debtor can file a plan of reorganization. The
most important of these is stabilizing the Debtor's business after
the new lease.
The Debtor believed that the requested extension of their Exclusive
Periods is warranted and appropriate under the circumstances,
particularly since this motion is the Debtor's first request for an
extension. The Debtor said that the requested extension is
realistic and necessary, will not prejudice the legitimate interest
of creditors and other parties in interest, and will afford it a
meaningful opportunity to propose a meaningful plan, as
contemplated by Chapter 11 of the Bankruptcy Code.
About The Family for Life Foundation
The Family For Life Foundation filed a Chapter 11 bankruptcy
petition (Bankr. N.D. Ohio Case No. 17-14759) on Aug. 12, 2017,
estimating under $1 million in both assets and liabilities. The
Debtor is represented by Glenn E. Forbes, Esq., at Forbes Law LLC.
FLEXERA SOFTWARE: S&P Cuts CCR to 'B-' on $700MM in Debt Issuance
-----------------------------------------------------------------
Flexera Software LLC plans to issue debt as part of a transaction
involving a change in its equity ownership. TA Associates (which
will invest cash equity) will be a minority equity stakeholder
following transaction close, while Ontario Teachers' Pension Plan
will remain the majority equity owner.
S&P Global Ratings is thus lowering its corporate credit rating on
Itasca, Ill.-based Flexera Software LLC to 'B-' from 'B'. The
outlook is stable.
S&P said, "At the same time, we assigned our 'B-' issue-level
rating and '3' recovery rating to Flexera's revolving credit
facility and senior secured first-lien term loan. The '3' recovery
rating indicates our expectation for meaningful (50%-70%; rounded
estimate: 55%) recovery in the event of a payment default.
"We also assigned our 'CCC+' issue-level rating and '5' recovery
rating to the company's $125 million second-lien term loan. The '5'
recovery rating indicates our expectation for modest (10%-30%;
rounded estimate: 10%) recovery in the event of a payment default.
"The rating reflects our updated view of Flexera's financial risk
profile, with pro forma adjusted leverage in the low-8x area upon
the close of the proposed transaction. While leverage could drop to
the low-7x area over the next 12 months (due to synergies related
to the BDNA acquisition), and we expect the company to generate
annual free cash flow of $40 million or better in 2018, we expect
the company to use its free cash flow for acquisitions. The stable
outlook reflects our expectation that Flexera will complete the
integration of BDNA in early 2018 and will generate free cash flow
of around $40 million over the next 12 months.
"Although unlikely over the next 12 months, we could lower the
rating if the company fails in its M&A strategy or there are
customer and revenue losses in core business segments, resulting in
weakened liquidity and negative free cash flow.
"We could raise the rating to 'B' if Flexera manages to execute on
its BDNA synergy plan and use free cash flow toward debt reduction,
such that S&P-adjusted leverage falls to under the 7x area and free
cash flow to debt stays above 5%."
FORTRESS CREDIT V: S&P Assigns BB(sf) Rating on Class E Notes
-------------------------------------------------------------
S&P Global Ratings assigned its ratings to Fortress Credit BSL V
Ltd./Fortress Credit BSL V LLC's $547 million floating- and
fixed-rate notes.
The note issuance is a collateralized loan obligation
securitization backed by broadly syndicated speculative-grade
senior secured term loans that are governed by collateral quality
tests.
The ratings reflect S&P's view of:
-- The diversified collateral pool, which consists primarily of
broadly syndicated speculative-grade senior secured term loans that
are governed by collateral quality tests.
-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.
-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.
-- The transaction's legal structure, which is expected to be
bankruptcy remote.
-- The transaction's exposure to closing date participations,
which are expected to be mitigated via certain rating
considerations.
RATINGS ASSIGNED
Fortress Credit BSL V Ltd./Fortress Credit BSL V LLC
Class Rating Amount
(mil. $)
A AAA (sf) 372.00
B-1 AA (sf) 43.00
B-2 AA (sf) 41.00
C (deferrable) A (sf) 36.00
D (deferrable) BBB (sf) 35.00
E (deferrable) BB (sf) 20.00
Subordinated notes NR 63.00
NR--Not rated.
FOX PROPERTY: Case Summary & 13 Unsecured Creditors
---------------------------------------------------
Debtor: Fox Property Holdings, LLC
12803 Schabarum Avenue
Irwindale, CA 91706
Business Description: Fox Property Holdings, LLC listed itself as
a Single Asset Real Estate (as defined in 11
U.S.C. Section 101(51B)).
Chapter 11 Petition Date: January 17, 2018
Court: United States Bankruptcy Court
Central District of California (Los Angeles)
Case No.: 18-10524
Judge: Hon. Robert N. Kwan
Debtor's Counsel: Timothy J. Yoo, Esq.
LEVENE, NEALE, BENDER, YOO & BRILL LLP
10250 Constellation Blvd Ste 1700
Los Angeles, CA 90067
Tel: 310-229-1234
Fax: 310-229-1244
E-mail: tjy@lnbyb.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ji Li, managing member.
A full-text copy of the petition is available at:
http://bankrupt.com/misc/cacb18-10524.pdf
List of Debtor's 13 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
US Longton Inc. Loan $1,000,000
12803 Schabarum Avenue
Baldwin Park, CA 91706
Fung, Christina Loan $20,000
SGV Capital, Inc. Services $17,000
Rendered
Southern California Edison Utility $15,057
Services
City of San Utility $3,165
Bernardino Services
Municipal Water (for 340 West
Department 4th Street)
Burrtec Waste Utility $1,708
Industries, Inc. Services
Hedrick Fire Fire Alarm $1,262
Protection Testing
Services
City of San Utility $520
Bernardino Services
Municipal Water (for 399 North
Department D Street)
City of San Utility $473
Bernardino Services
Municipal Water (for 399 North
S Street, Unit 2)
The Gas Company Utility $363
Services
City of San Utility $91
Bernardino Services
Municipal Water (for 369 North
Department D Street)
G.W. Group LLC Property $0
Management
Fees
Hwang, Harry and Litigation $0
Hwang, Jung H. Claim
c/o Tomlinson &
Prince, L.L.P.
FRONT STREET VENTURES: Unsecureds to be Paid 5% Over 10 Years
-------------------------------------------------------------
Front Street Ventures, LLC, filed a motion asking the U.S.
Bankruptcy Court for the Eastern District of Pennsylvania to
approve its disclosure statement regarding its plan of
reorganization dated Jan. 4, 2017.
The Debtors was incorporated in Pennsylvania as a limited liability
corporation by Myles Hannigan, its Managing Member, on May 15,
2007. The Debtor was formed solely to own and operate a multi-story
office building at 104-06 West Front Street, Media, PA. 19063, a
location directly across the street from the Delaware County Court
House.
The Debtor's Plan of Reorganization contains five classes. Classes
One and Two consists of the claims of the first and second
mortgagees against the Property, PNC and Celtic, respectively.
Class Three includes only the secured claim of the Pennsylvania
Department of Revenue. Class Four contains the creditors secured by
judicial liens against the Property, which the Debtor has filed an
adversary proceeding to avoid, as well as bifurcate the Celtic
claim into secured and unsecured portions. Class Five contains the
Debtor’s general unsecured claims.
The Class Three claim will be paid in full within five years from
the commencement of this case. Mortgage arrears owed to the Class
Two and the secured portion of the Class Three claim will be cured
within five years from the effective date of the plan, which is one
year after confirmation of the plan. The unsecured portion of Class
Two, the Class Four claims, and the Class Five claims will be paid
five 5 % of their claims over a period of 10 years.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/paeb17-17047-55.pdf
Front Street Ventures, LLC, filed for Chapter 11 bankruptcy
protection (Bankr. E.D. Pa. Case No. 17-17047) on Oct. 18, 2017.
GARRETT PROPERTIES: Feb. 21 Amended Disclosure Statement Hearing
----------------------------------------------------------------
Judge Frank W. Volk of the U.S. Bankruptcy Court for the Southern
District of Virginia is set to hold a hearing on Feb. 21, 2018 at
1:30 p.m. to consider and act upon approval of the proposed amended
disclosure statement filed by Garrett Properties, LLC on Oct. 25,
2017.
Feb. 9, 2018 is set as the last day to file and serve any written
objection to the proposed amended disclosure statement.
The Troubled Company Reporter previously reported that the secured
claim of Top of World Condo Association -- estimated at $14,590 --
are impaired by the Plan. World Condo will be paid $269 a month,
with interest rate of 4% (prime plus .5%), over five years.
About Garrett Properties
Headquartered in Charleston, West Virginia, Garrett Properties,
LLC, is a limited liability company. Since Aug. 17, 2004, the
Debtor has been in the business of owning, holding and renting
commercial and residential real estate.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr. S.D.
W.V. Case No. 15-20085) on Feb. 24, 2015, estimating its assets and
liabilities at between $1 million and $10 million each.
Judge Ronald G. Pearson presides over the case.
James M. Pierson, Esq., at Pierson Legal Services, serves as the
Debtor's bankruptcy counsel.
GILA RIVER: Taps Shackelford Hawkins as Legal Counsel
-----------------------------------------------------
Gila River Capital, LLC, filed an amended application seeking
approval from the U.S. Bankruptcy Court for the Northern District
of Texas to hire Shackelford, Hawkins & Searcy, P.C. as its legal
counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; assist in the preparation of a plan of
reorganization; and provide other legal services related to its
Chapter 11 case.
Shackelford charges an hourly fee of $300 for the services of its
attorneys and $100 for paralegal services.
The firm received a retainer in the sum of $2,500 from the Debtor's
owner prior to the petition date.
Shackelford is a "disinterested person" as defined in Section
101(14) of the Bankruptcy Code, according to court filings.
The firm can be reached through:
Chip N. Searcy, Esq.
Shackelford, Hawkins & Searcy, P.C.
3001 Halloran Street, Suite A
Fort Worth, TX 76107
Telephone: 817-386-2881
Telecopier: 817-386-3077
Email: chip@shsfirm.com
About Gila River Capital
Based in Cresson, Texas, Gila River Capital LLC is a small
investor. The company was founded in 2007. Gila River Capital
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Texas Case No. 17-44922) on Dec. 4, 2017. Bill Garner,
president, signed the petition. At the time of the filing, the
Debtor estimated assets of $1 million to $10 million and
liabilities of less than $500,000. Judge Mark X. Mullin presides
over the case.
GUARDIAN ENTERPRISES: Taps Elkins and Associates as Accountant
--------------------------------------------------------------
Guardian Enterprises of Alabama, LLC, seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Tennessee to hire an
accountant.
The Debtor proposes to employ Elkins and Associates to provide
accounting services in connection with its Chapter 11 case. The
firm received a retainer in the sum of $2,500 prior to the petition
date.
Van Elkins, a certified public accountant, disclosed in a court
filing that the firm and its members do not hold or represent any
interest adverse to the Debtor's estate.
The firm can be reached through:
Van T. Elkins
Elkins and Associates
800 S. Gay Street, Suite 2150
Knoxville, TN 37929
Phone: (865) 523-8700
Fax: (865) 546-8629
E-mail: van.elkins@vanelkins.com
About Guardian Enterprises of Alabama
Guardian Enterprises of Alabama, LLC is a privately-held company
whose principal place of business is located at 82 Plantation
Point, Suite 102 Fairhope, Alabama. It posted gross revenue of
$233,443 in 2017, $180,404 in 2016 and $54,539 in 2015.
Guardian Enterprises of Alabama sought protection under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Tenn. Case No. 18-50025) on
Jan. 5, 2018. Scott M. Carmichael, member, signed the petition.
At the time of the filing, the Debtor disclosed $67,000 in assets
and $2.85 million in liabilities.
Judge Marcia Phillips Parsons presides over the case.
The Debtor tapped QUIST, FITZPATRICK & JARRARD, PLLC, as counsel;
and VAN ELKINS AND ELKINS & ASSOCIATES, as accountant.
GUARDIAN ENTERPRISES: Taps Quist Fitzpatrick as Legal Counsel
-------------------------------------------------------------
Guardian Enterprises of Alabama, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Tennessee to hire
Quist, Fitzpatrick & Jarrard, PLLC as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code and will provide other legal services related to
its Chapter 11 case.
The firm received a pre-bankruptcy retainer in the amount of
$7,800.
Michael Fitzpatrick, Esq., at Quist Fitzpatrick, disclosed in a
court filing that the firm and its members do not hold or represent
any interest adverse to the Debtor's estate.
The firm can be reached through:
Michael H. Fitzpatrick, Esq.
Ryan E. Jarrard, Esq.
2121 First Tennessee Plaza
Knoxville, TN 37929-9711
Tel: 865.524.1873
Email: mhf@qcflaw.com
Email: rej@qcflaw.com
About Guardian Enterprises of Alabama
Guardian Enterprises of Alabama, LLC is a privately-held company
whose principal place of business is located at 82 Plantation
Point, Suite 102 Fairhope, Alabama. It posted gross revenue of
$233,443 in 2017, $180,404 in 2016 and $54,539 in 2015.
Guardian Enterprises of Alabama sought protection under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Tenn. Case No. 18-50025) on
January 5, 2018. Scott M. Carmichael, member, signed the petition.
At the time of the filing, the Debtor disclosed $67,000 in assets
and $2.85 million in liabilities.
Judge Marcia Phillips Parsons presides over the case.
The Debtor tapped QUIST, FITZPATRICK & JARRARD, PLLC, as counsel;
and VAN ELKINS AND ELKINS & ASSOCIATES, as accountant.
HARDES HOLDING: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
An official committee of unsecured creditors has not yet been
appointed in the Chapter 11 case of Hardes Holding, LLC, as of Jan.
16, according to a court docket.
About Hardes Holding
Based in Miller, South Dakota, Hardes Holding, LLC, is in the
business of grain farming & real estate rental. Hardes Holding
filed a Chapter 11 petition (Bankr. D.S.D. Case No. 17-30039) on
Dec. 4, 2017. Wade Hardes, authorized representative, signed the
petition. The Hon. Charles L. Nail, Jr., presides over the case.
Clair R. Gerry, Esq., at Gerry& Kulm Ask, Prof. LLC, is the
Debtor's bankruptcy counsel. As of Dec. 4, 2017, the Debtor had
total assets of $21.42 million and liabilities amounting to $11.17
million.
HOLOGIC INC: Moody's Gives Ba3 Rating to New Unsec. Notes Due 2028
------------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to Hologic, Inc.'s
new senior unsecured notes due 2028. Proceeds from these new senior
notes and additional funds raised from an add on to the existing
senior unsecured notes due 2025 (total approximately $1.0 billion)
will be used to redeem the company's existing $1.0 billion senior
unsecured notes due 2022.
"Given that the refinancing effectively swaps the shorter maturity
notes with similar notes of longer maturities, Moody's view this
transactions as leverage neutral, but still credit positive," says
Moody's Vice President Kailash Chhaya.
Consequently, there is no change to the company's existing Ba2
corporate family rating (CFR), Ba2-PD probability of default
rating, Ba1 senior secured ratings, Ba3 senior unsecured rating and
SGL-1 Speculative Grade Liquidity rating.
The rating outlook is stable.
Rating Assigned:
Senior unsecured notes due 2028 at Ba3 (LGD5)
Ratings Unchanged:
Corporate Family Rating at Ba2
Probability of Default Rating at Ba2-PD
Senior secured revolving credit facility expiring 2022 at Ba1
(LGD3)
Senior secured term loan due 2022 at Ba1 (LGD3)
Senior unsecured notes due 2025 at Ba3 (LGD5)
Speculative Grade Liquidity Rating at SGL-1
Rating to be withdrawn upon close:
Senior unsecured notes due 2022 at Ba3 (LGD5)
The outlook is stable.
RATINGS RATIONALE
Hologic's Ba2 CFR rating reflects its good scale, leading market
positions within its core franchises, and good revenue diversity by
product and customer. The rating is also supported by the recurring
nature of nearly 70% of the company's revenues which are generated
from service contracts and consumables. Further, the company
generates good free cash flow, has strong interest coverage and
carries moderate leverage of approximately 3.3x.
The ratings are constrained by Hologic's sensitivity to general
medical utilization trends and hospital capital equipment spending.
Further, the ratings reflect risks associated with technology
obsolescence and changes in medical practices.
Hologic's Speculative Grade Liquidity Rating of SGL-1 reflects
Moody's expectation for very good liquidity over the next 12-18
months. This view is supported by a sizeable cash balance ($540
million as of September 30, 2017) and Moody's belief that free cash
flow will remain strong in 2018. The substantial majority of the
company's cash is generated domestically, and therefore easily
accessible for US cash needs and potential debt repayment. The
increased revolver size provides further support.
Moody's could upgrade the ratings if Hologic can generate sustained
organic revenue growth and continue to repay debt such that the
rating agency expects adjusted debt to EBITDA to be sustained at
roughly 2.5x.
Moody's could downgrade the ratings if Hologic experiences a
material reduction in revenue and earnings. Specifically, ratings
could be downgraded if Moody's expects adjusted debt to EBITDA to
be sustained above 3.5x, or if liquidity deteriorates
meaningfully.
Hologic, Inc. is a leading developer, manufacturer and supplier of
premium diagnostic products, medical imaging systems and surgical
products. The company's core business units focus on diagnostics,
breast health, gynecological surgical, skeletal health and medical
aesthetics. Pro forma revenues are approximately $3 billion.
The principal methodology used in this rating was Medical Product
and Device Industry published in June 2017.
HOLOGIC INC: S&P Rates New Senior Unsecured Notes Due 2028 'BB-'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '6'
recovery rating to Marlborough, Mass.-based medical device
manufacturer Hologic Inc.'s proposed senior unsecured notes
maturing 2028.
The company is also doing an add-on on its existing 4.375% notes
due 2025. Together, the total amount of issuance is $1 billion in a
leverage-neutral refinancing transaction. The company will use
proceeds to redeem its outstanding 5.25% unsecured notes due 2022.
The '6' recovery rating on the unsecured notes reflects S&P's
expectation for negligible (0%-10%; rounded estimate: 0%) recovery
in the event of default.
S&P said, "Our 'BB+' corporate credit rating and existing
issue-level ratings on Hologic are unaffected. The outlook is
stable. Our rating on Hologic incorporates our view of the
company's leading market position in breast health, supported by
high barriers to entry, its above-average profitability, and
moderate product and geographic diversity. While we expect mergers
and acquisitions to contribute to Hologic's growth strategy, we
expect the company to maintain leverage between 2x-3x."
RATINGS LIST
Hologic Inc.
Corporate Credit Rating BB+/Stable/--
New Rating
Hologic Inc.
Senior Unsecured Notes Due 2028 BB-
Recovery Rating 6 (0%)
HT INTERMEDIATE: S&P Affirms 'CCC' Corp. Credit Rating, Outlook Neg
-------------------------------------------------------------------
S&P Global Ratings affirmed the 'CCC' corporate credit rating and
negative outlook on California-based apparel retailer HT
Intermediate Holdings Corp.
S&P said, "We also raised the issue-level rating on the senior
notes to 'B-' from 'CCC', and revised the recovery rating to '1'
from '3'. The '1' recovery rating indicates very high (90%-100%;
rounded estimate: 95%) recovery in the event of a payment default.
"The rating action reflects our belief that the announced guarantee
on Hot Topic Inc.'s senior notes by Torrid improves the likelihood
that obligations of this debt issue will be paid on time and in
full, and that recovery prospects for the issue have improved
because the guarantee is secured by a 100% equity pledge from
Torrid Inc. Although we believe the settlement agreement could
lower the possibility of proactive debt restructuring over the next
12 month, we are affirming the 'CCC' corporate credit rating and
negative outlook because the agreement does not enhance Hot Topic's
liquidity and has no effect on Hot Topic's ability to service its
own debt.
"The negative outlook on HT Intermediate reflects our expectation
that operating performance will remain challenged given the
increasingly competitive retail environment, resulting in
meaningfully negative free operating cash flow generation and
tightening liquidity over the next 12 months. At year-end 2017, we
expect FFO to debt to be in the 6.0x area, and fixed-charge
coverage in the low-1.0x area.
"We could lower the ratings if we believe a default is inevitable
within the next six months. This could happen if the company is
unable to meaningfully improve performance trends and show signs of
stabilization over the next three to six months. Under this
scenario, the pace of cash burn would become unsustainable, causing
the company to rely heavily on its $100 million revolving credit
facility (availability of about $55 million as of third quarter
end) to fund business operations. We could also lower the ratings
if we believe the likelihood of a distressed exchange or proactive
debt restructuring has increased.
"Although unlikely over the next 12 months, we could revise the
outlook to stable if operating performance meaningfully improves on
a sustained basis, indicating that the company is able to secure
more compelling and exclusive merchandise, while also effectively
managing inventory. Under this scenario, revenue in 2018 would
increase in the low- to mid-single digits (compared with our
forecast of a modest sales decline), and gross margin would expand
by 400 bps over our base-case forecast. This would lead to
moderately positive free operating cash flow, and fixed-charge
coverage in the mid-1.0x on a consistent basis. At this time, we
would believe the risk of a distressed exchange or proactive debt
restructuring is minimal."
ILLINOIS FINANCE: Fitch Withdraws BB- Rating on 2010 Bonds
----------------------------------------------------------
Fitch Ratings has withdrawn its ratings for the following bonds due
to prerefunding activity:
-- Illinois Finance Authority fixed-rate revenue & refunding
bonds series 2010 (prerefunded maturities only - 45200FU98,
45200FU80). Previous Rating: 'BB-'/Stable.
KANSAS INTERNAL: Taps Cornerstone CPA as Accountant
---------------------------------------------------
Kansas City Internal Medicine, P.A., seeks approval from the U.S.
Bankruptcy Court for the District of Kansas to hire Cornerstone CPA
Group, LLC as its accountant.
The firm will assist the Debtor in the preparation of its federal
and state tax returns and other financial statements.
The firm's hourly rates are:
Kelly Holloway $210
Manager $180
Senior Staff $135
Staff $90
Kelly Holloway, an accountant employed with Cornerstone, disclosed
in a court filing that he is "disinterested" as defined in section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Kelly B. Holloway
Cornerstone CPA Group, LLC
6420 W. 95th St., Suite 202
Overland Park, KS 66212
Phone: 913-948-6915/913-381-8350
Fax: 913-381-7589
About Kansas City Internal Medicine
Kansas City Internal Medicine, P.A. -- https://www.kcim.com/ -- a
division of Signature Medical Group, is a private internal medicine
physician practice with more than 170 employees serving more than
135,000 patient visits per year. KCIM specializes in internal
medicine, endocrinology, rheumatology, podiatry, integrative
medicine, personalized healthcare, clinical psychology, and
chiropractic. The company's gross revenue amounted to $3.86
million in 2016 and $26.69 million in 2015. KCIM has locations in
Kansas City and Lee's Summit, Missouri, and in Overland Park in
Kansas.
Kansas City Internal Medicine sought Chapter 11 protection (Bankr.
D. Kan. Case No. 17-22168) on Nov. 8, 2017. David Wilt, MD, its
president, signed the petition. The Debtor disclosed total assets
at $567,000 and total liabilities at $1,477,611.
Judge Dale L. Somers is the case judge.
The Debtor tapped Colin N. Gotham, Esq., at Evans & Mullinix, P.A.,
as counsel. The Debtor also hired Lindsay Auction & Realty
Service, Inc., as auctioneer.
KAPPA DEVELOPMENT: Has Final OK To Obtain Financing From Blackledge
-------------------------------------------------------------------
The Hon. Katharine M. Samson of the U.S. Bankruptcy Court for the
Southern District of Mississippi has entered a final agreed order
granting Kappa Development & General Contracting, Inc., to obtain
postpetition credit from Raymond "Randy" Blackledge.
As reported by the Troubled Company Reporter on Nov. 23, 2017, the
Debtor sought court permission to obtain $25,000 in post-petition
financing from Blackledge. Funds will repaid to Blackledge upon
receipt of funds from the three construction projects which the
Debtor wishes to finish: (a) City of Waveland Channel 44G-1; (b)
City of Waveland Phase II and III; and (c) Perry County Bridge.
The Debtor is only authorized to utilize the funds available to it
to fund essential aspects of the Debtor's operation, specifically
to maintain payroll and to allow for compliance with some
negotiated aspects of the disputed construction contract with the
City of Waveland that will allow the Debtor to receive certain
funds presently due and owing from the City of Waveland.
A copy of the Order is available at:
http://bankrupt.com/misc/mssb17-51155-157.pdf
About Kappa Development
Kappa Development & General Contracting, Inc., based in Gulfport,
Miss., filed a Chapter 11 petition (Bankr. S.D. Miss. Case No.
17-51155) on June 12, 2017. The petition was signed by Randy
Blacklidge, president. In its petition, the Debtor estimated $1
million to $10 million in both assets and liabilities. The Hon.
Katharine M. Samson presides over the case. Nicholas Van Wiser,
Esq. at Byrd & Wiser, serves as bankruptcy counsel.
KINGMAN FARMS: Case Summary & Unsecured Creditor
------------------------------------------------
Debtor: Kingman Farms Ventures, LLC
8912 Spanish Ridge Avenue, Suite 200
Las Vegas, NV 89148
Type of Business: Kingman Farms Ventures, LLC, is a privately held
company that operates in the crop farms industry
located in Las Vegas, Nevada.
Chapter 11 Petition Date: January 16, 2018
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Case No.: 18-10180
Judge: Hon. Laurel E. Davis
Debtor's Counsel: Nedda Ghandi, Esq.
GHANDI DEETER BLACKHAM
725 South 8th Street Suite 100
Las Vegas, NV 89101
Tel: (702) 878-1115
Fax: (702) 979-2485
E-mail: nedda@ghandilaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by James R. Rhodes, president of Truckee
Springs Holdings, Inc., manager of the Debtor.
The Debtor listed Avery Land Group, LLC as its sole unsecured
creditor holding a claim of $4,509,451.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/nvb18-10180.pdf
KLX INC: Moody's Alters Outlook to Positive & Affirms B1 CFR
------------------------------------------------------------
Moody's Investors Service affirmed ratings for KLX Inc., including
the B1 Corporate Family Rating (CFR), the B1-PD Probability of
Default Rating, and the B2 rating on the senior unsecured notes.
The rating outlook has been changed to positive from stable.
RATINGS RATIONALE
The positive outlook reflects Moody's expectations for earnings and
cash flow growth during 2018 which would be on top of KLX's strong
recent operating performance. Moody's anticipates that much of this
growth will be driven by the on-going recovery in KLX's energy
segment while a favorable demand environment in aerospace end
markets should also support the anticipated improvement in KLX's
credit metrics.
The B1 Corporate Family Rating reflects KLX's position as one of
the leading distributors of fasteners and consumables, an improving
set of credit metrics, and a robust liquidity profile. The rating
balances KLX's strengthening credit profile against the company's
recent announcement that it intends to explore strategic
alternatives focused on maximizing shareholder value. While the
strategic review involves a range of potential outcomes, Moody's
believes a transaction that would be detrimental to KLX's overall
credit profile has a relatively lower likelihood. Nevertheless, the
uncertainty resulting from the review and the possibility of an
outcome that meaningfully alters KLX's existing risk profile or
that is leveraging in nature currently acts as a tempering
consideration to the rating.
KLX's strong standing within its core aerospace markets (currently
over 80% of sales) is evidenced by solid profitability metrics with
EBITDA margins in its Aerospace Solutions Group (ASG) approaching
20%. Moody's expect favorable aerospace fundamentals, business wins
from prior years, and a stabilizing energy environment to support
firm-wide high-single digit revenue growth in 2018. KLX's Energy
Solutions Group (ESG) appears to be well-positioned to benefit from
the on-going recovery in energy markets and Moody's expect this
segment to be a key driver of earnings growth in the coming
quarters. This growth will result in an improving set of credit
metrics and absent any leveraging transactions resulting from the
strategic review, Moody's anticipate that Moody's adjusted
Debt-to-EBITDA will be comfortably below 3.5x over the next 12 to
15 months.
KLX's liquidity profile is strong as indicated by the Speculative
Grade Liquidity Rating of SGL-1. As of October 31, 2017, the
company had considerable cash balances of almost $290 million,
substantially all of which was held in the US. Moody's anticipate
strong free cash flow generation over the next year and expect
FCF-to-Debt in the high single-digits to low double-digits during
2018. External liquidity is provided by an undrawn $750 million
asset-backed revolver that expires in May 2020.
The ratings could be upgraded if Debt-to-EBITDA was anticipated to
remain at or below 4.0x. Any upgrade would involve a continuation
of KLX's strong liquidity profile with free cash flow to debt
persistently in the high single-digit range. A balanced capital
allocation strategy with expectations of a conservative level of
share repurchases would be a prerequisite to a ratings upgrade.
The ratings could be downgraded if Debt-to-EBITDA was anticipated
to remain above 5.5x. A weakening of KLX's liquidity such that free
cash flow to debt was expected to be in the low single-digits or a
sustained reliance on the ABL borrowings could also cause downgrade
rating pressure. The adoption of a more aggressive financial
policy, a change in KLX's risk profile, or a transaction that is
meaningfully leveraging in nature could also result in a
downgrade.
The following summarizes rating actions:
Issuer: KLX Inc.
Affirmations:
Corporate Family Rating, affirmed B1
Probability of Default Rating, affirmed B1-PD
$1,200 million senior unsecured notes due 2022, affirmed B2
(LGD-4)
Speculative Grade Liquidity Rating, affirmed SGL-1
Outlook Actions:
Outlook, changed to Positive from Stable
KLX Inc. is a leading distributor of aerospace fasteners and other
consumables and a leading provider of logistic services to the
airline and aerospace industries. KLX is also a provider of
technical, logistical and support services to the oil & gas
industry offering a range of technical solutions including wireline
services, fishing services, pressure control equipment and onshore
completion services. Revenues for the twelve months ended October
2017 were $1.7 billion.
The principal methodology used in these ratings was Global
Aerospace and Defense Industry published in April 2014.
LAUREATE EDUCATION: S&P Hikes Sr. Secured Credit Ratings to 'B+'
----------------------------------------------------------------
S&P Global Ratings raised its issue-level rating on Laureate
Education Inc.'s senior secured credit facility to 'B+' from 'B'
and revised the recovery rating to '2' from '3'. The '2' recovery
rating indicates S&P's expectation for substantial recovery
(70%-90%; rounded estimate: 75%) in the event of a payment default.
The upgrade follows the company's repayment of $350 million of the
term loan borrowings primarily from assets sale proceeds. The
issue-rating upgrade reflects lower outstanding secured debt under
S&P's simulated default scenario and higher recovery prospects for
secured lenders.
S&P's recovery valuation assumes the company would be valued at a
6x EBITDA multiple, with almost 70% of its estimated $2.5 billion
recovery value located at nonguarantor foreign subsidiaries. Pro
forma for the debt repayment, as of Sept. 30, 2017, the company's
senior secured credit facility comprised a $385 million revolving
credit facility due 2022 and $1.238 billion outstanding on its $1.6
billion term loan due 2024.
S&P said, "Our 'B' corporate credit rating and stable rating
outlook on Laureate, and our 'B-' issue-level and '5' recovery
ratings on the company's $800 million senior unsecured debt, are
unchanged. The '5' recovery rating reflects our expectations for
modest (10%-30%; rounded estimate: 15%) recovery in the event of a
payment default scenario. The stable outlook reflects our
expectation that Laureate will continue to grow its revenues in the
low- to mid-single-digit percentage range, maintain adequate
liquidity, and lower its lease-adjusted debt leverage to the mid-
to high-5x range in 2017 and to the high-4x area in 2018. We also
expect that Laureate's free operating cash flow (FOCF) to debt will
improve to the 5% area by year-end 2018. Our leverage calculations
treat the company's preferred stock as debt."
Laureate primarily provides undergraduate and graduate courses
through more than 60 institutions globally. It recently announced
asset sales in China, Malaysia, Italy, Cyprus, and Morocco, with
plans to use a portion of the sale proceeds to repay debt. S&P
views Laureate's debt repayment as credit positive but leverage
remains high. However, S&P recognizes that Laureate and the
preferred stockholders will have the option to convert the
preferred equity to common equity in early 2018, which could
moderate the company's leverage to the mid-4x area in 2018.
Laureate's significant debt funding costs and high growth capital
spending levels have historically resulted in limited FOCF.
Furthermore, Laureate's credit measures are exposed to volatility
in exchange rates and country risk because the company generates
roughly three-quarters of its EBITDA outside the U.S.
An upgrade would be contingent on Laureate maintaining stable
operating performance with organic revenue growth in addition to
the company adopting a less aggressive financial policy such that
lease-adjusted leverage declines to low-4x levels and FOCF to debt
improves to the high-single-digit percentage range. Reduced
dependence on foreign currency earnings to repay predominantly U.S.
dollar denominated debt would also be supportive of an upgrade.
S&P could lower the corporate credit rating if it expects that
Laureate's lease-adjusted leverage would increase to over 6x or if
it generates FOCF below $50 million on a sustained basis. A
tightening of the company's covenant cushion to below 15% could
also result in a downgrade. This scenario could occur if Laureate
faces significant adverse currency movements, or an economic
downturn in Mexico, Brazil, or Chile result in material reduction
in student enrollments.
RATINGS LIST
Laureate Education Inc.
Corporate Credit Rating B/Stable/--
Issue-level Ratings Raised; Recovery Ratings Revised
To From
Laureate Education Inc.
Senior Secured B+ B
Recovery Rating 2(75%) 3(65%)
Rating Affirmed; Recovery Rating Unchanged
Senior Unsecured B-
Recovery Rating 5(15%)
LIGNUS INC: Wants to Maintain Exclusivity Through September 3
-------------------------------------------------------------
Lignus, Inc., asks the U.S. Bankruptcy Court for the Southern
District of California to extend the exclusive period to solicit
acceptances, and seek confirmation of the Plan for an additional
approximately 180 days up to and including Sept. 3, 2018.
The Debtor recently filed its Plan of Reorganization on January 5,
2018. A hearing to approve the Disclosure Statement to the Plan is
scheduled for March 5, 2018. Because the exclusivity period will
otherwise expire on March 7, 2018, unless otherwise extended, the
Debtor will clearly not have sufficient time to serve its Plan on
creditors, solicit acceptances, and seek confirmation of the Plan.
Accordingly, the Debtor needs sufficient time to negotiate and
obtain confirmation of its Plan.
About Lignus Inc.
Established in 2004, Lignus, Inc. is a privately held company
engaged in the lumber, plywood, and millwork trade. Lignus, Inc.,
filed a Chapter 11 petition (Bankr. S.D. Cal. Case No. 17-05475) on
Sept. 8, 2017. The petition was signed by Jose Gaitan, CFO. At
the time of filing, the Debtor estimated both assets and
liabilities between $1 million and $10 million. The case is
assigned to Judge Christopher B. Latham. The Law Offices of Kit J.
Gardner is the Debtor's bankruptcy counsel. Integro Consultants
serves as the Debtor's accountant.
LNB-015-13 LLC: Needs More Time to Value Collateral
---------------------------------------------------
LNB-015-13 LLC asks the U.S. Bankruptcy Court for the Southern
District of Florida to extend the exclusive period for the Debtor
to solicit acceptances of its plan of reorganization.
As reported by the Troubled Company Reporter on Dec. 7, 2017, the
Court granted the Debtor's request to extend its exclusivity period
for filing a Chapter 11 Plan and Disclosure Statement until Jan.
16, 2018, without prejudice to an additional request to extend the
deadline if deemed warranted.
The Debtor moves to enjoin foreclosure sale, for mediation, and to
extend exclusive period to solicit acceptances.
On Nov. 8, 2017, the Court conducted a hearing on Deutsche Bank's
motion for stay relief and adequate protection. The Court ordered
Debtor to file its plan by Jan. 16, 2018, and allowed the Bank to
set a foreclosure sale for after Feb. 15, 2018, and Debtor to file
a motion to enjoin the sale along with its plan and disclosure
statement. To prove cause sufficient to enjoin the foreclosure
Debtor is required to establish a prima facie case for confirmation
at the disclosure hearing. The Court also extended exclusive
period to file a plan to Jan. 16, 2018.
The Debtor and the Bank have been negotiating a consensual plan,
but additional time is needed, and perhaps mediation. The Bank has
received the $299,000 appraisal and a formal request for short
payoff and proof of funds and ownership have been presented to the
Bank. Due to the Bank's requirements, the appraisal has not yet
been reviewed by the Bank, even though it was presented Oct. 29,
2017.
The plan provides for the indubitable equivalent of foreclosure and
resale by payment of the value of the property less sales costs to
Bank at confirmation.
A prima facie case for confirmation is presented by indubitable
equivalent and a non-insider unsecured class expected to vote for
the plan.
The Bank has not moved in state court to reset foreclosure.
Therefore, the Debtor asks for additional time to value collateral,
negotiate with creditors, and amend plan and disclosure statement,
and solicit acceptances, and mediation.
A copy of the Debtor's request is available at:
http://bankrupt.com/misc/flsb17-19226-41.pdf
About LNB-015-13 LLC
LNB-015-13, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 17-19226) on July 22,
2017. The petition was signed by Harel Bitton, its authorized
representative. At the time of the filing, the Debtor estimated
assets and liabilities of less than $500,000. Joel M. Aresty P.A.
is the Debtor's bankruptcy counsel. An official committee of
unsecured creditors has not yet been appointed in the Chapter 11
case.
LOOKIN UP: Wants 30-Day Extension of Exclusive Plan Filing Deadline
-------------------------------------------------------------------
Lookin Up Enterprises, Inc., asks the U.S. Bankruptcy Court for the
Middle District of Florida to extend the exclusive periods for the
Debtor to file a plan of reorganization and to solicit acceptance
of the plan by approximately 30 days.
The Debtor's initial Exclusive Filing Period and Solicitation
Period expires on Jan. 16, 2018. The Debtor has not yet filed its
Plan of Reorganization and Disclosure Statement.
The Debtor believes the requested extensions are consistent with
the sound case management, and will allow the Debtor's management,
its creditors, and other parties in interest adequate time to focus
on the development, negotiation and documentation of a plan of
reorganization. The extensions, if granted, will enable the Debtor
to address those matters that need to be resolved before a plan of
reorganization can be fully formulated and negotiated, all without
the distractions and over adverse effects of competing plan
proposals or the possibility of same.
The exclusive periods provided by Congress were incorporated in the
U.S. Bankruptcy Code to afford a debtor a full and fair opportunity
to propose a consensual plan and solicit acceptances of the plan
without the deterioration and disruption of the debtor's business
that might be caused by the filing of competing plans by non-debtor
parties. Indeed, the primary objective of a Chapter 11 case is the
formulation, confirmation, and consummation of a consensual plan,
and it is the intention of the Debtor to work toward achieving this
objective. The Debtor says that termination of the Exclusive
Periods in this Chapter 11 case before the process of plan
negotiation has been fully addressed would defeat the very purpose
of Section 1121 of the Bankruptcy Code.
A copy of the Debtor's request is available at:
http://bankrupt.com/misc/flmb17-08036-62.pdf
About Lookin Up Enterprises
Lookin Up Enterprises Inc. is a Boat club and rental business which
delivers medium sized power boats to renters and members alike in a
unique format and pricing structure.
Based in St. Petersburg, Florida, Lookin Up filed a Chapter 11
petition (Bankr. M.D. Fla. Case No. 17-08036) on Sept. 18, 2017.
The Debtor is represented by Buddy D Ford, Esq., at Buddy D. Ford
P.A.
At the time of filing, the Debtor estimated $50,001 to $100,000 in
assets and $500,001 to $1 million in liabilities.
MARINE MAMMAL: Case Summary & 3 Unsecured Creditors
---------------------------------------------------
Debtor: Marine Mammal Conservancy, Inc.
102200 Overseas Hwy
Key Largo, FL 33037
Type of Business: Marine Mammal Conservancy, Inc. is a
nonprofit organization operating in the
Florida Keys. Marine Mammal Conservancy
owns a veterinarians facility at 102200
Overseas Highway in Key Largo, FL.
Chapter 11 Petition Date: January 16, 2018
Case No.: 18-10594
Court: United States Bankruptcy Court
Southern District of Florida (Miami)
Judge: Hon. Laurel M Isicoff
Debtor's Counsel: Kristopher Aungst, Esq.
WARGO & FRENCH, LLP
201 S. Biscayne Blvd.
Suite 1000
Miami, FL 33131
Fort Lauderdale, FL 33301
Tel: 305-777-6040
E-mail: kaungst@wargofrench.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Art Cooper, director and president.
A copy of the Debtor's list of three unsecured creditors is
available for free at:
http://bankrupt.com/misc/flsb18-10594_creditors.pdf
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/flsb18-10594.pdf
MCO INDUSTRIES: Plan and Disclosures Hearing Set for Feb. 9
-----------------------------------------------------------
Judge Edward A. Godoy of the U.S. Bankruptcy Court for the District
of Puerto Rico conditionally approved MCO Industries Inc.'s small
business disclosure statement, dated Jan. 4, 2018, in support of
its plan of reorganization.
Acceptances or rejections of the Plan must be filed in writing
on/or before 14 days prior to the date of the hearing on
confirmation of the Plan.
Any objection to the final approval of the Disclosure Statement
and/or the confirmation of the Plan must be filed on/or before 14
days prior to the date of the hearing on confirmation of the Plan.
A hearing for the consideration of the final approval of the
Disclosure Statement and the confirmation of the Plan will be held
on Feb. 9, 2018 at 9:30 a.m. at the United States Bankruptcy Court,
Jose V. Toledo Federal Building & U.S. Courthouse, Southwestern
Divisional Office, 300 Recinto Sur Street, San Juan, Puerto Rico.
Under the Plan, Class 3 - General Unsecured Claims, totaling
$946,343, are impaired. This Class will be paid 42% of their
allowed claims, plus 4.25% interest, in 60 monthly installments.
First 12 months at a rate of $3,682.42, and 48 at a rate of
$8,289.20 per month.
The Debtor's Plan will be funded with proceeds from it operations
and from the moneys recovered from the lawsuit for collection of
moneys filed against Finca Real, Inc. The Debtor believes its
business will get a significant boost in 2018 as the demand to
repair the structures and roads damaged during the passing of
Hurricanes Irma and Maria will increase the demand for the
aggregates and sand it sells. Sales during November 2017 exceeded
$50,000.00 and the December 2017 sales exceeded $60,000.00.
Moreover, there is a commitment from the Federal Government to
spent over a billion dollars in road repairs that will also
dramatically increase Debtor’s sales during the lifespan of its
Chapter 11.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/prb17-00961-56.pdf
About MCO Industries Inc.
MCO Industries Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. P.R. Case No. 17-00961) on February 15,
2017. The petition was signed by John McComas Miro, president.
The case is assigned to Judge Edward A. Godoy.
At the time of the filing, the Debtor estimated assets of less than
$500,000 and liabilities of $1 million to $10 million.
MISSION CRANE: Flash Funding Does Not Allow Cash Collateral Use
---------------------------------------------------------------
Flash Funding, LLC, filed with the U.S. Bankruptcy Court for the
Southern District of Texas an opposition to Mission Crane Service,
LLC's Expedited Motion for Use of Cash Collateral.
In its Motion, the Debtor sought leave to use the funds generated
in the ordinary course of its oilfield transportation services
business, and proposed to grant Flash Funding a replacement lien on
all inventory and accounts receivable acquired by the Debtor since
the Petition Date.
Flash Funding opposes the Debtor's Motion, to the extent that the
Debtor's estate no longer has an "interest" in the cash collateral
properly foreclosed by Flash Funding prior to the bankruptcy
filing.
Accordingly, Flash Funding asserts that the Debtor cannot continue
using this portion of the cash collateral for any purpose and the
Honorable Court lacks jurisdiction to authorize or condition its
use.
On June 8, 2017, Flash Funding sent R&T Ellis Excavating copy of
Invoice No. 14071 and corresponding Notice of Assignment. In
accordance therewith, Flash Funding foreclosed on the amount of
$9,805 in accounts receivable prior Debtor's bankruptcy filing. As
such, this portion of the collateral is now property of Flash
Funding, and no further action is needed to enforce its interest in
the collateral and divest the estate's interest in the same.
As to the remaining $26,495, which remains as part of the estate,
Flash Funding opposes to the Debtor's Motion to the extent that no
sufficient protection is being afforded in exchange for using said
cash collateral. Flash Funding claims that the proposed
replacement lien on all inventory and accounts receivable acquired
by the Debtor since the Petition Date are insufficient to cover the
outstanding balance due. Moreover, the Debtor's budget is
insufficient to allow Flash Funding to examine the adequacy of the
proposed protection. The Budget does not contain an itemized
accounts receivable section or inventory section.
Moreover, to the extent that the Debtor admits that Flash Funding
holds a perfected security interest in the Debtor's accounts
receivables, Flash Funding complains that the Debtor is not
offering anything as adequate protection that Flash Funding does
not already have.
Attorneys for Flash Funding LLC:
Brian Schrumpf, Esq.
Cristina S. Belaval, Esq.
The Fuentes Firm, P.C.
5507 Louetta Road, Suite A
Spring, Texas 77379
Telephone: (281) 378-7640
Facsimile: (281) 378-7639
E-mail: robert@fuentesfirm.com
cristina@fuentesfirm.com
About Mission Crane Service
Mission Crane Service, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. S.D. Tex. Case No. 17-70386) on Oct. 2, 2017, estimating
$100,000 to $500,000 in assets and liabilities. Julio C. Rios,
president/member, signed the petition. Judge Eduardo V. Rodriguez
is assigned to the case. The Debtor is represented by Marcos D.
Oliva, Esq., at the Law Firm of Marcos D. Oliva, P.C.
NABORS INDUSTRIES: Fitch Lowers Long-Term IDR to BB; Outlook Neg.
-----------------------------------------------------------------
Fitch Ratings has downgraded Nabors Industries, Ltd. (Nabors; NYSE:
NBR) and its affiliate's Long-Term Issuer Default Rating (IDR) to
'BB' from 'BB+'. Fitch also assigns a 'BB/RR4' rating to the
company's senior unsecured notes due 2025, which rank pari passu
with other outstanding senior unsecured debt. Proceeds from the
issuance will be used to repay outstanding debt, including the
outstanding senior unsecured notes due February 2018. Management
will initially use proceeds to repay amounts currently outstanding
on the credit facility, which will be redrawn in order to repay the
senior unsecured notes due February 2018. The Rating Outlook is
Negative.
The downgrade reflects Nabor's reduced capacity to lower gross debt
levels and higher than previously forecasted leverage profile over
the medium term. Fitch currently forecasts debt/EBITDA of
approximately 5.0x in 2018 compared to Fitch previous forecast of
approximately 4.4x. The difference is mainly driven by more
moderate rig activity and margin expectations given the continued
realization of industry-wide production efficiencies, particularly
in the U.S. Lower 48, and levelling of global rig counts during the
second half of 2017.
The Negative Outlook considers the risk that a structurally lower
U.S. rig count and extended international rig recovery could result
in weaker than expected free cash flow (FCF) and leverage metrics
over the next few years. This would reduce liquidity and heighten
refinancing risk ahead of debt maturities (2018-2021) that
represent over 50% of gross debt outstanding. Another consideration
is the potential that management may revert to its previous plan to
repay near-term maturities with the credit facility more closely
linking financial flexibility with near-term FCF generation and
heightening execution risk.
Approximately $4.3 billion of debt is affected by rating action. A
full list of rating actions follows at the end of this release.
KEY RATING DRIVERS
U.S. Rigs Levelling, Structural Risk: Nabors experienced a strong
uptick in U.S. Lower 48 rig activity during the first half of 2017,
consistent with the average U.S. rig count, but continued rig
efficiency gains are increasing the risk that the U.S. rig count
may be structurally lower over the medium- to long-term. Fitch
believe, however, that the company's 'SmartRigs', in conjunction
with ancillary technological offerings, are among the best U.S.
pad-capable rigs, which should help these rigs maintain relatively
resilient utilization and day rates. The company's U.S. Lower 48
rig count bottomed in second quarter 2016 (2Q16; 45 average working
rigs) and has experienced steady quarterly growth (102 average
working rigs in 3Q17). Fitch expects Nabors' U.S. Lower 48 working
rig count to average 105 in 2018 followed by modest incremental
growth thereafter, while margins improve over the next couple of
years due to a combination of lower average rig costs, modest
day-rate increases, and additional rig-level services.
International Recovery Lagging: Nabors' international drilling
segment has exhibited resilient through-the-cycle results,
consistent with the average international rig count, and has been a
favorable hedge to the more variable U.S. rig count. The company's
international rig count bottomed in 1Q17 (90 average working rigs)
and has seen some recent adds in Latin America and MENA. Management
indicated that there are some pockets of growth, but does not
generally expect a robust rig count improvement near term. Fitch
forecasts the company's international working rig count will
average around 95 in 2018 followed by annual average adds of less
than 10 rigs, while margins are projected to remain in the
$17,000-$18,000 range through 2019. Fitch does not expect the
company's new 50/50 JV with Saudi Aramco to contribute meaningful
cash flows over the next few years.
Improving FCF, Wide Metrics Forecast: Fitch's base case projects
that Nabors will be approximately $600 million FCF negative in 2017
and around $50 million FCF positive in 2018. Debt/EBITDA is
forecasted to be approximately 7.4x in 2017 and 5.0x in 2018 as
EBITDA generation begins to rebound. Fitch's base case does not
forecast FCF generation to be sufficient to materially reduce gross
debt levels over the next few years.
DERIVATION SUMMARY
Nabors is one of the largest global onshore rig operators with
significant U.S. and international footprints. The company is the
third largest U.S. onshore rig operator, on a working-rig basis,
with over 10% market share. Helmerich & Payne, Inc. (unrated) and
Patterson-UTI Energy, Inc. (unrated) have greater U.S. onshore
market share at approximately 20% and 15%, respectively, but do not
have significant international operations. Precision Drilling
Corporation (B+/Stable) has a smaller U.S. footprint than Nabors,
but has roughly 25% share of the seasonally cyclical Canadian
market providing some cash flow diversification. Nabors'
international onshore rig fleet provided the company with a
favorable counterbalance to the more volatile U.S. rig count and
cash flow profile through-the-cycle. Fitch believes that this
international first-mover and scale advantage, as well as
relatively better financial position compared to international peer
KCA Deutag Drilling Limited (unrated), will benefit the company
over the medium- to long-term as evidenced by the recent Saudi
Aramco JV. Further, Fitch considers Nabors' asset quality to be
high with their 'SmartRig' being among the best U.S. pad-capable
rigs, which should help these rigs maintain relatively resilient
utilization and day rates through-the-cycle. The company, however,
is in a relatively weaker financial position than certain large
U.S. onshore rig peers, which may lead to it being
capital-constrained and placing it at a competitive disadvantage as
the U.S rig replacement and pad-optimal customer adoption cycle
continues.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- WTI oil price that trends up from $50/barrel in 2018 to a
longer-term price of $55/barrel;
-- Henry Hub gas price that trends up from $3/mcf in 2018 to a
longer-term price of $3.25/mcf;
-- Levelling U.S. Lower 48 working rig count averaging 105 in
2018 followed by modest growth thereafter;
-- International working rig count improves averaging 95 in 2018
followed by annual average adds of less than 10 rigs;
-- Canada exhibits some working rig improvement trends, but
remains below pre-cycle highs;
-- Average corporate rig margins expand close to mid- to high-30%
range over the next few years;
-- Rig services reaches a $50 million run-rate EBITDA at year-end
2017;
-- Capex of approximately $575 million in 2017 followed by
capital spending in the $400 million-$450 million range
annually;
-- Saudi Aramco JV has no material cash flow impact over the next
few years;
-- Quarterly dividend remains $0.06/share with no additional
shareholder actions contemplated near term.
RATING SENSITIVITIES
Developments that may, individually or collectively, lead to a
positive rating action include:
For an upgrade to 'BB+':
-- Demonstrated commitment by management to lower gross debt
levels;
-- improved liquidity and financial flexibility outlook;
-- Heightened rig utilization and average day rates/margins
signalling an improvement in market conditions;
-- Mid-cycle debt/EBITDA of below 3.3x - 3.5x on a sustained
basis.
To resolve the Negative Outlook at 'BB':
-- Continued debt management that reduces the need to use the
credit facility to repay near-term maturities;
-- Demonstrated ability to manage FCF leading to lower debt
levels and an improved liquidity and refinance risk outlook;
-- Mid-cycle debt/EBITDA of below 3.8x-4x on a sustained basis.
Developments that may, individually or collectively, lead to a
negative rating action include:
-- Failure to manage FCF that reduces liquidity position and
increases gross debt levels;
-- Structural deterioration in rig fundamentals that result in
weaker than expected financial flexibility;
-- Mid-cycle debt/EBITDA above 4.3x-4.5x on a sustained basis.
LIQUIDITY
Issuance Improves Forecasted Liquidity: Cash and short-term
investments totalled approximately $220 million as of Sept. 30,
2017. Supplemental sources of liquidity consist of the company's
$2.25 billion senior unsecured credit facility due July 2020 and
commercial paper (CP) program. As of Sept. 30, 2017, Nabors had
approximately $1.8 billion available on its credit facility and
associated CP program.
The company's senior unsecured notes issuance will improve the
forecasted medium-term liquidity profile compared with management's
previous intention to use a combination of cash and the credit
facility to repay the near-term maturities. Fitch believes that
lack of proactive debt management and reversion to a strategy of
using the credit facility to repay debt maturities would more
closely link Nabor's financial flexibility with its near-term FCF
generation.
Considerable Maturity Profile: Nabors has approximately $465
million, $303 million, $670 million and $695 million of maturities
in 2018, 2019, 2020 and 2021, respectively. These maturities
represent the company's 6.15% senior unsecured notes due February
2018, 9.25% senior unsecured notes due January 2019, 5.0% senior
unsecured notes due September 2020, and 4.625% senior unsecured
notes due September 2021, and account for over 50% of gross debt
outstanding.
Covenant Risk Remains Elevated: Financial covenants, as defined in
the credit facility agreement, require Nabors to maintain a net
debt-to-total capitalization ratio below 0.6x (Fitch estimate of
over 0.5x as of Sept. 30, 2017). The covenant, as defined in the
credit agreement, does not have a non-cash asset impairment
carve-out. Material asset impairment charges on Nabors' long-lived
assets could result in covenant pressure, as well as elevate
liquidity risk. Fitch is concerned that the company may be subject
to additional impairment charges given the reduction in rig years
and utilization rates. Other customary covenants across Nabors'
debt instruments consist of lien limitations, transaction
restrictions, and change of control provisions.
Manageable Other Liabilities: Nabors launched a voluntary, one-time
defined pension plan (assumed in a 1999 acquisition) buyout to
eligible participants resulting an approximately $10.3 million
payout in 2016. This reduced the obligation to an immaterial level
mitigating future pension payment risk. Other contingent
obligations totalled under $260 million on a multi-year,
undiscounted basis as of Dec. 31, 2016. These obligations mainly
consist of purchase commitments, pipeline minimum volume
commitments, minimum lease payments, and minimum salary and bonus
obligations.
The company's 50/50 JV with Saudi Aramco required Nabors contribute
$20 million in cash for formation of the JV (paid in 2Q17) and five
drilling rigs and related assets upon commencement of operations
(commenced in 4Q17). Nabors will also contribute an additional five
drilling rigs and related assets to the JV in 2019, as well as
backstop its share of the JV's obligation to purchase the first 25
drilling rigs. Fitch does not anticipate the JV will require
material capital contributions from Nabors given the 41 rigs
currently in Saudi Arabia, expected JV cash flow, and potential for
JV-level financing.
FULL LIST OF RATING ACTIONS
Fitch has taken the following rating actions:
Nabors Industries, Ltd. (Bermuda)
-- Long-term IDR downgraded to 'BB' from 'BB+'.
Nabors Industries, Inc. (Delaware)
-- Long-term IDR downgraded to 'BB' from 'BB+';
-- Senior unsecured bank facility downgraded to 'BB/RR4' from
'BB+/RR4';
-- Senior unsecured notes downgraded to 'BB/RR4' from 'BB+/RR4';
-- Senior unsecured convertible notes downgraded to 'BB/RR4' from
'BB+/RR4';
-- Short-term IDR affirmed at 'B';
-- Commercial paper program affirmed at 'B'.
The Rating Outlook is Negative.
Fitch has also assigned the following rating:
Nabors Industries, Inc. (Delaware)
-- Senior unsecured notes due 2025 'BB/RR4'.
NABORS INDUSTRIES: Moody's Rates Proposed Sr. Unsecured Notes Ba3
-----------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to Nabors
Industries Inc.'s proposed senior unsecured notes due 2025. Nabors'
other ratings were unchanged. The rating outlook remains negative.
Net proceeds from the proposed notes will be used to repay the
company's 6.15% notes due February 2018 and to reduce outstanding
borrowings under the company's commercial paper program and/or
revolving credit facility.
"While the proposed debt offering is a leverage neutral transaction
and will improve Nabors' near term liquidity, the company's high
financial leverage and limited revolver covenant cushion will
continue to pose heightened credit risk in 2018," said Sajjad Alam,
Moody's Senior Analyst. "Moody's expect dayrates and EBTIDA to
improve from weak 2017 levels, but the cash flow recovery will be
slow and Nabors may not accomplish much debt reduction in 2018."
Issuer: Nabors Industries Inc.
Assigned:
Senior Unsecured Bond/Debenture due 2025, Assigned Ba3 (LGD4)
RATINGS RATIONALE
The proposed 2025 notes will rank pari passu with Nabors' existing
senior unsecured notes as well as the revolving credit facility.
The notes will also have the same downstream guarantee from Nabors
Industries Ltd., as do the existing notes and the revolver. Nabors
is a wholly-owned subsidiary of Nabors Industries Ltd., which is
incorporated in Bermuda.
Nabors Industries Inc.'s Ba3 Corporate Family Rating (CFR) reflects
its elevated financial leverage (7.4x Debt/EBITDA at September 30,
2017), modest earnings and cash flow prospects in 2018, significant
debt maturities through 2021, as well as the challenging contract
drilling environment globally. Despite improving fleet utilization
and industry conditions, the company may not generate free cash
flow or pay down debt in 2018. While Moody's expects Nabors'
earnings to drift higher, a slow recovery in contract dayrates as
well as additional rig re-activation and upgrade costs will
continue to delay free cash flow generation. Nabors is still paying
roughly $67 million in annual cash dividends that will hinder debt
reduction. The Ba3 CFR is underpinned by Nabors' large scale, high
quality rig fleet, and a strong and diversified international
footprint. Notwithstanding the political risks inherent in overseas
operations, the company's international operations have provided
much stronger credit support than its North American drilling
business historically as well as in this downturn.
The negative outlook reflects Nabors' high financial leverage and
refinancing risk. The CFR could be downgraded if the Debt/EBITDA
ratio remains above 6x through the end of 2018 or if the debt level
rises. An upgrade is unlikely through 2018 given Moody's
expectation of a slow industry recovery. Longer term, an upgrade
could be considered if the Debt/EBITDA ratio can be sustained near
4x in a stable to improving industry environment.
Nabors Industries Inc., based in Houston, Texas, is the largest
global land drilling contractor with operations in 20 countries,
including several offshore markets
The principal methodology used in this rating was Global Oilfield
Services Industry Rating Methodology published in May 2017.
NAVILLUS TILE: Committee Taps FTI as Financial Advisor
------------------------------------------------------
The official committee of unsecured creditors of Navillus Tile,
Inc., seeks approval from the U.S. Bankruptcy Court for the
Southern District of New York to retain FTI Consulting, Inc., as
its financial advisor.
The firm will assist the committee in reviewing or preparing
information necessary for the confirmation of a bankruptcy plan;
review financial-related disclosures; prepare analyses required to
assess any proposed financing; monitor any asset sale process;
review analysis of Navillus' core business assets and the potential
disposition or liquidation of non-core assets; and provide other
services related to the Chapter 11 cases filed by the company and
its affiliates.
The firm's hourly rates are:
2017 Hourly Rates
-----------------
Senior Managing Directors $750 – $1,050
Directors/Sr. Directors/Managing Directors $475 – $835
Consultants/Senior Consultants $285 – $605
Administrative/Paraprofessionals $135 – $265
2018 Hourly Rates
-----------------
Senior Managing Directors $750 – $1,075
Directors/Sr. Directors/Managing Director $475 – $855
Consultants/Senior Consultants $285 – $620
Administrative/Paraprofessionals $140 – $270
Samuel Star, FTI senior managing director, disclosed in a court
filing that his firm does not hold or represent any interest
adverse to the Debtor's estate.
FTI can be reached through:
Samuel E. Star
FTI Consulting, Inc.
Three Times Square, 9th Floor
New York, NY, 10036
Tel: +1 212 247 1010
Fax: +1 212 841 9350
Email: samuel.star@fticonsulting.com
About Navillus Tile
Navillus Tile Inc., is one of the largest subcontractors and
general contractors in New York, specializing as a high-end
concrete and masonry subcontractor on large private and public
construction projects in the New York metropolitan area. Navillus
works closely with many of New York's most prominent architects,
builders, owners, government agencies and institutions and is
pre-qualified by numerous commercial and government agencies.
Navillus operates its business from a midtown Manhattan
headquarters which it has leased since 2015. Donald O'Sullivan,
which founded the business with his brothers, is the sole director,
president and chief executive officer of Navillus.
Navillus Tile filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case
No. 17-13162) on Nov. 8, 2017, estimating $100 million to $500
million in assets and debt.
Judge Sean H. Lane is the case judge.
Cullen and Dykman LLP is the Debtor's legal counsel. Otterbourg
P.C., serves as special litigation and conflicts counsel. Garden
City Group, LLC, is the administrative advisor.
On Nov. 28, 2017, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors. Hahn & Hessen LLP is
the committee's bankruptcy counsel.
NORFOLK STREET: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Norfolk Street Management LLC
60 Riverside Blvd., Apt. 1901
New York, NY 10069
Type of Business: Norfolk Street Management LLC is a privately
held company engaged in activities related to
real estate. Its principal assets are located
at 46 East 82nd Street New York, NY 10028.
Chapter 11 Petition Date: January 17, 2018
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Case No.: 18-10113
Debtor's Counsel: Dawn Kirby, Esq.
DELBELLO DONNELLAN WEINGARTEN WISE & WIEDERKEHR,
LLP
One North Lexington Avenue
White Plains, NY 10601
Tel: (914) 681-0200
Fax: 914-681-0288
E-mail: dkirby@ddw-law.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Penny Bradley, managing member.
The Debtor failed to include a list of the names, addresses, and
contact details of its 20 largest unsecured creditors at the time
of the filing.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/nysb18-10113.pdf
OAKFABCO INC: Seeks Court Approval of Disclosure Statement
----------------------------------------------------------
Oakfabco, Inc., filed a motion asking the U.S. Bankruptcy Court for
the Northern District of Illinois for an entry of an order
approving its disclosure statement regarding its plan of
liquidation.
The Debtor also asks that the Court establish procedures for
solicitation and tabulation of votes on the Plan, approve the form
of ballots, and schedule a hearing to consider Confirmation of the
Plan.
The Plan provides for the establishment of a liquidating trust that
will assume liability for Asbestos PI Claims and use its assets to
resolve the Asbestos PI Claims. Confirmation of the Plan is
integral to the successful conclusion of this Chapter 11 Case and
will eliminate protracted litigation and ensure a fair and
equitable distribution among holders of Asbestos PI Claims.
The Debtor asserts that the disclosure statement complies with all
aspects of section 1125 of the Bankruptcy Code because it contains
information that is reasonably practicable to permit a hypothetical
creditor to make an informed judgment about the Plan. Further, in
accordance with Local Rule 3016-1, the disclosure statement
includes an introductory narrative summarizing the nature of the
Plan and includes a clear description of the proposed treatment of
each Class, as well as a liquidation analysis. Accordingly, the
Debtor submits that, given the facts and circumstances of this
Chapter 11 Case, the Disclosure Statement contains "adequate
information" within the meaning of section 1125 of the Bankruptcy
Code, comports with Local Rule 3016-1 and, thus, should be
approved.
Article VIII of the Disclosure Statement describes in detail the
entities subject to injunctions under the Plan and the acts that
they are enjoined from pursuing. Further, the language describing
the injunctions and acts enjoined is in bold and italics, making it
conspicuous to anyone who reads it.
In addition, Article VIII of the Disclosure Statement also
describes in detail the exculpation and release provisions of the
Plan, and the language describing these provisions is also in bold
and italics, in order to make the language conspicuous to the
reader.
A full-text copy of the Debtor's Request is available at:
http://bankrupt.com/misc/ilnb15-27062-592.pdf
A full-text copy of the Disclosure Statement explaining the
Debtor's Amended Plan is available at:
http://bankrupt.com/misc/ilnb15-27062-578.pdf
About Oakfabco, Inc.
Oakfabco, Inc, formerly known as Kewanee Boiler Corporation, has
not manufactured boilers since 1988 when it sold its Kewanee boiler
business in an 11 U.S.C. Section 363 sale to Coppus Engineering
Corporation. In early 2009, it sold all of its remaining assets.
The Debtor has no employees, and, Frederick W. Stein is the
Debtor's sole officer and director. The Debtor's sole remaining
asset is its insurance, and it has no known liabilities other than
asbestos claims.
In January 1970, Kewanee Boiler Corp, then a newly-formed Illinois
Corporation, acquired the assets and debt of American Standard,
Inc.'s commercial boiler manufacturing division known as "Kewanee
Boiler." The boilers manufactured and sold by Kewanee Boiler were
insulated with asbestos.
Oakfabco sought Chapter 11 protection (Bankr. N.D. Ill. Case No.
16-27062) on Aug. 7, 2015, to resolve its remaining asbestos
claims. The petition was signed by Frederick W. Stein, president.
Stephen T. Bobo, Esq., Aaron B. Chapin, Esq., Paul M. Singer, Esq.,
Luke A. Sizemore, Esq., and Joseph D. Filloy, Esq., at Reed Smith
LLP, serves as counsel to the Debtor.
The Debtor estimated $10 million to $50 million in assets and
debt.
The U.S. Trustee for Region 11 appointed four members to the
Asbestos Claimants' Committee in the Chapter 11 bankruptcy case of
Oakfabco Inc.: Vince Holajn, William E. Gallet, Kristin Leigh Hart,
and Michael Batchelor. The Asbestos Claimants' Committee is
represented by Frances Gecker, Esq., at FrankGecker LLP.
The Debtor tapped Logan & Company, Inc. as its claims and noticing
agent, and Alan D. Lasko and Associates, P.C. as its tax
accountant.
The Asbestos Claimants' Committee retained Henry Booth and Colin
Gray to provide insurance professional services.
OLIN CORP: Moody's Rates Proposed $500MM Notes Due 2030 'Ba1'
-------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating to Olin
Corporation's proposed $500 million Senior Notes due 2030. Proceeds
from the notes, combined with cash on hand, are expected to be used
to repay $500 million of term loan debt and pay transaction-related
fees and expenses. All existing ratings, including the Ba1
Corporate Family Rating ("CFR"), are not affected.
"Olin is taking advantage of strong conditions in the capital
markets," said Ben Nelson, Moody's Vice President -- Senior Credit
Officer and lead analyst for Olin Corporation.
Assignments:
Issuer: Olin Corporation
-- Senior Unsecured Regular Bond/Debenture, Assigned Ba1 (LGD4)
RATING RATIONALE
The Ba1 Corporate Family Rating ('CFR") balances a business profile
that could support investment-grade ratings in the medium term and
credit metrics that are still weak for the rating category
following the leveraged acquisition of chlor-alkali and epoxy
assets from Dow Chemical in late 2015. Moody's estimates adjusted
financial leverage in the high 4 times (Debt/EBITDA) and retained
cash flow-to-debt near 11% (RCF/Debt) for the twelve months ended
September 30, 2017. Moody's expects strong cyclical conditions in
the chlor-alkali industry for at least two years resulting from the
phase-out of mercury cell production technology in the European
Union at the end of 2017. Moody's expects that the strong
conditions will enable Olin to generate more than $1.1 billion of
annual EBITDA under management's definition starting in 2018, up
from less than $900 million in 2017, and at least $500 million of
cumulative free cash flow by the end of 2019. However, Moody's
believes that the chlor-alkali industry is cyclical and any
potential upside to the rating will be dictated by management's
stated financial policies with regard to target leverage over the
cycle and observed actions with regard to free cash flow generation
and debt reduction. The rating is constrained by exposure to
cyclical industries and expectation for substantive weakening in
credit metrics during cyclical downturns.
The SGL-2 Speculative Grade Liquidity Rating ("SGL") reflects good
liquidity to support operations over the next four or five
quarters. Moody's expects Olin will generate at least $250 million
of free cash flow in 2018, depending on the intended level of
capital investment. Olin reported over $700 million of available
liquidity at September 30, 2017, comprised of $256 million of
balance sheet cash and $461 million of availability on a $600
million revolving credit facility. Moody's expects Olin to maintain
a reasonable cushion above/below its financial maintenance
covenants.
The stable outlook assumes that Olin will maintain good liquidity
to support operations, including a good projected cushion of
compliance under financial maintenance covenants, and show
meaningful improvement in credit metrics in 2018. Moody's could
upgrade the rating with expectations for adjusted financial
leverage sustained below 3 times, retained cash flow-to-debt
sustained above 20%, and clear articulation of the importance of
achieving and sustaining investment-grade ratings. Moody's could
downgrade the rating with expectations for adjusted financial
leverage above 4 times, retained cash flow-to-debt below 12%,
failure to generate at least $200 million of free cash flow in the
current cyclical stage for the chlor-alkali industry, or a
substantive deterioration of liquidity, including a meaningful
narrowing of the cushion of compliance under financial maintenance
covenants.
The principal methodology used in this rating was Global Chemical
Industry Rating Methodology published in December 2013.
Olin Corporation is a Clayton, Missouri-based manufacturer and
distributor of commodity chemicals, and a manufacturer of small
caliber, firearm ammunition. The company operates through three
main segments, (1) Chlor Alkali Products and Vinyls whose primary
products include chlorine and caustic soda, hydrochloric acid,
vinyl chloride, sodium hypochlorite (bleach), and potassium
hydroxide; (2) Epoxy, which produces and sells a full range of
epoxy materials, including allyl chloride, epichlorohydrin, liquid
epoxy resins and downstream products such as converted epoxy resins
and additives; and (3) Winchester, whose primary focus is the
manufacture and sale of small caliber, firearm sporting and
military ammunition. In 2015, Olin acquired Dow's U.S.
chlor-alkali, global epoxy and global chlorinated organics
businesses.
OLIN CORP: S&P Rates Proposed $500MM Unsec. Notes Due 2030 'BB'
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level and '3' recovery
ratings to U.S.-based Olin Corp.'s proposed $500 million senior
unsecured notes due 2030, proceeds of which will be used to pay
down existing term loans. The '3' recovery rating indicates S&P's
expectation of meaningful (50% to 70%; rounded estimate: 55%)
recovery for lenders in the event of a payment default. The 'BB'
issue-level and '3' recovery ratings on the company's existing debt
are unchanged.
S&P's 'BB' corporate credit rating and stable rating outlook on
Olin Corp. are unchanged.
RATINGS LIST
Olin Corp.
Corporate Credit Rating BB/Stable/--
New Ratings
Olin Corp.
$500 Mil. Sr Unsecured notes due 2030 BB
Recovery Rating 3 (55%)
ON SEMICONDUCTOR: S&P Affirms 'BB' CCR, Outlook Stable
------------------------------------------------------
S&P Global Ratings affirmed its 'BB' corporate credit rating on
Phoenix-based ON Semiconductor Corp. The outlook is stable.
The rating reflects ON's fragmented, competitive, and cyclical
industry conditions, operating results that have lagged the
addressable markets over the past several years (although 2017
results have been better than the addressable market), and EBITDA
margins that are lower than those of semiconductor peers of similar
scale. Partly offsetting these factors are the company's good
position in the power management segment of the semiconductor
market, diversified end markets and customer base, and long-term
growth opportunities for the company's imaging products and
automotive end market. Current leverage of 2.3x provides ample
cushion to S&P's 4x downside threshold, for the company to pursue
acquisitions.
S&P said, "The stable outlook reflects our expectation that ON
Semiconductor has enough cushion within the rating to pursue its
acquisition and shareholder return objectives, and absorb an
operating downturn, while maintaining leverage below 4x.
"We could lower the rating over the next 12 months if a
semiconductor industry downturn or large, debt-financed
acquisitions result in leverage sustained above 4x. ON
Semiconductor would reach this level if EBITDA fell by 45% from
current levels or the company executed a $3.5 billion acquisition
assuming a 12x purchase multiple.
"Although we do not expect to do so over the next 12 months, we
could raise the rating if we come to believe it can pursue its
acquisition and shareholder return objectives as well as absorb a
cyclical downturn while maintaining leverage below 3x. Despite
having current leverage below this level, we don't think a 'BB+'
rating would provide enough cushion given our view that the
industry is near a cyclical peak and our view that the company
intends to continue to pursue acquisitions in a consolidating
industry."
ORCAL GEOTHERMAL: Fitch Affirms BB Rating on $165MM Notes Due 2020
------------------------------------------------------------------
Fitch Ratings has affirmed OrCal Geothermal LLC's (OrCal) $165
million senior notes ($27.3 million outstanding) due in 2020 at
'BB'. The Rating Outlook is Stable.
KEY RATING DRIVERS
The 'BB' rating reflects Fitch's expectation of stable operations
of OrCal's geothermal projects under long-term revenue contracts
with some exposure to index-based price risk. The rating considers
that resource production risk is mitigated by sponsor-funded
discretionary capital expenditures and the relatively short
remaining debt tenor.
Production Below Original Estimates - Supply Risk: Weaker
The absence of substitute fuel supply leaves OrCal exposed to the
risk of declining geothermal resource production. Production is
dependent on an active, sponsor-supported capital plan that is
funded at the sponsor's discretion. Although the sponsor
demonstrates a strong track record of funding capital expenditures,
annual production has generally trended down over the last five
years.
Diminished Price Risk - Revenue Risk: Midrange
At the beginning of 2016, 50% of OrCal's total capacity
transitioned to a power purchase agreement (PPA) with the Southern
California Public Power Authority (SCPPA). As a result, the
proportion of capacity tied to volatile energy pricing under the
Short Run Avoided Cost (SRAC) methodology has been reduced to
one-third. OrCal's entire capacity is contracted with PPA
expirations ranging from three to 11 years beyond debt maturity.
Stable Operating Cost Profile - Operation Risk: Midrange
OrCal has maintained a stable cost profile over the past few years,
excluding sponsor-funded capital expenditures. The operator is a
subsidiary of the project sponsor and has significant experience
operating geothermal assets.
Fully-amortizing Debt Structure - Debt Structure: Midrange
OrCal's fully amortizing debt faces no refinancing risk and
contains features typical of project finance structures, such as a
six-month debt service reserve.
Financial Profile
Underperformance of the geothermal resource, a shortfall in
sponsor-funded capex, or continued weakness in SRAC pricing could
impair OrCal's ability to service debt payments over the remaining
three-year debt term. Under Fitch's rating case, which excludes
planned capacity increases and assumes 2.5% annual declines in
resource production and SRAC energy pricing averaging approximately
$29/MWh, debt service coverage ratios (DSCRs) modestly below 1.00x
with suggesting full debt repayment would be dependent on the use
of reserves. However, if capital plans are executed in line with
sponsor expectations, Fitch projects rating case DSCRs could exceed
1.4x.
PEER GROUP
Fitch has rated other geothermal and renewable assets at a
sub-investment grade level that suffered substantially greater
resource depletion or volatility than Orcal's plants or earned a
proportionally larger share of revenue from variable SRAC price
risk. OrCal's combination of resource and price risks is considered
stronger than those faced by FirstLight Hydro Generating Company
('BB-'/Stable Outlook), which requires support from its parent
company.
RATING SENSITIVITIES
Future Developments That May, Individually or Collectively, Lead to
Negative Rating Action:
-- Production declines or low SRAC pricing resulting in a Fitch-
calculated DSCR below rating case levels;
-- A significant increase in operating costs or cessation of
sponsor support for operating expenses or capital
expenditures.
Future Developments That May, Individually or Collectively, Lead to
Positive Rating Action:
-- Successful implementation of planned capital improvements and
sustained stable resource production, generating Fitch-
calculated DSCRs at or above base case levels.
PASSAGE MIDLAND: PCO Files 4th 60-Day Report
--------------------------------------------
Suzanne E. Messenger, the patient care ombudsman for Passage
Midland Meadows Operations, LLC, filed her fourth 60-day report
regarding the facility's quality of patient care.
The PCO reports that both the assisted living and Alzheimer's units
of Midland Meadows are fully staffed with no vacancies. Cottage
residents do not receive direct services. The resident assistant
(RA) position, a direct care position, continues to see regular
turnover. Based on information and belief, this is not due to a
shortage of operating funds or otherwise related to the bankruptcy
but rather is the customary turnover for this position. Midland
Meadows continues its longstanding pre-bankruptcy practice of
conducting bi-weekly RA trainings. Interviews with both
long-tenured and newly hired staff yielded no bankruptcy related
concerns. Staff report that pay continues to be regular with no
concerns other than the use of paper checks and not direct deposit.
Staff report this as an inconvenience and hope for a return to
direct deposit by the end of the year. No residents reported
staffing-related concerns.
The West Virginia Long-term Care Ombudsman Program opened one
complaint related to abuse at Midland Meadows for this reporting
period. Midland Meadows investigated the incident promptly and took
steps to protect the resident and prevent further abuse/neglect.
The Ombudsman's investigation is on-going. Additionally, the
Long-term Care Ombudsman Program received a copy of a "major
incident" report alleging that a staff person had falsified
credentials on resident care documents. No actual resident harm was
alleged. The staff person was terminated and the allegations
reported to the appropriate regulatory and licensing entities.
Finally, West Virginia Regional Long-term Care Ombudsmen staff
conducted a monitoring visit on Dec. 4, 2017. During this visit,
they visited with as many residents who were willing and able to
speak with them. No issues or problems were reported.
One allegation of physical abuse and/or neglect was reported during
this reporting period. The alleged perpetrator is a staff person
and has been terminated.
A full-text copy of the PCO's Fourth Report dated Dec. 17, 2017, is
available at:
http://bankrupt.com/misc/wvsb3-17-30092-575.pdf
About Passage Midland, et al.
Passage Healthcare -- http://passagehealthcare.net-- is a senior
living care provider founded in 2013 by Andrew Turner and William
Lasky.
Passage Midland Meadows Operations, LLC and three affiliates filed
separate Chapter 11 bankruptcy petitions (Bankr. S.D. W.Va. Lead
Case No. 17-30092) on March 13, 2017. The affiliates are Passage
Healthcare Property, LLC; Passage Longwood Manor Operations, LLC;
and Passage Village of Laurel Run Operations, LLC.
The Debtors operate a senior health care facility in Pennsylvania
known as The Village of Lauren Run.
The petitions were signed by Andrew Turner, member-manager of
Passage Healthcare, LLC, manager of Passage Midland.
Passage Midland estimated $0 to $50,000 in assets and $1 million to
$10 million in liabilities as of the bankruptcy filing.
The Hon. Frank W. Volk presides over the cases.
Jackson Kelly PLLC is the Debtors' bankruptcy counsel. Capozzi
Adler, PC, is the Debtors' special counsel, required to provide
services related to Pennsylvania regulatory and licensing
compliance and Medicare, and Medicaid payment and compliance.
Judy A. Robbins, the U.S. Trustee for Region 4, appointed Margaret
Barajas as the Patient Care Ombudsman for two of the Debtors:
Passage Village of Laurel Run Operations and Passage Longwood Manor
Operations.
An official committee of unsecured creditors has not been appointed
in the Debtors' cases, according to a court docket.
PASSAGE VILLAGE: PCO Files 4th 60-Day Report
--------------------------------------------
Margaret Barajas, the patient care ombudsman for Passage Village of
Laurel Run Operations, LLC, filed her fourth 60-day report with
regard to the facility's quality of patient care.
The PCO reports that there were no staffing complaints to the
ombudsmen during this reporting period.
Administrator Larry Cottle reported that a new head chef was hired
in November and a new menu was being developed. He indicated that
once feedback from the residents was received, the menu selections
would be adjusted based on their feedback.
One staff expressed concern that the good reputation of the
facility has been damaged in the community because of the payroll
issues. She reports, however, that staff has been consistently paid
during this reporting period.
There were no significant concerns reported to the ombudsmen during
this period. Residents also report that they are able to express
their concerns directly to Mr. Cottle.
The PCO states that they will continue to have the local ombudsmen
conduct weekly site visits and meet with residents to ensure their
quality of care and life continue to be positive.
A full-text copy of the PCO's Fourth 60-Day Report dated Dec. 17,
2017 is available at:
http://bankrupt.com/misc/wvsb3-17-30092-577.pdf
About Passage Midland, et al.
Passage Healthcare -- http://passagehealthcare.net-- is a senior
living care provider founded in 2013 by Andrew Turner and William
Lasky.
Passage Midland Meadows Operations, LLC and three affiliates filed
separate Chapter 11 bankruptcy petitions (Bankr. S.D. W.Va. Lead
Case No. 17-30092) on March 13, 2017. The affiliates are Passage
Healthcare Property, LLC; Passage Longwood Manor Operations, LLC;
and Passage Village of Laurel Run Operations, LLC.
The Debtors operate a senior health care facility in Pennsylvania
known as The Village of Lauren Run.
The petitions were signed by Andrew Turner, member-manager of
Passage Healthcare, LLC, manager of Passage Midland.
Passage Midland estimated $0 to $50,000 in assets and $1 million to
$10 million in liabilities as of the bankruptcy filing.
The Hon. Frank W. Volk presides over the cases.
Jackson Kelly PLLC is the Debtors' bankruptcy counsel. Capozzi
Adler, PC, is the Debtors' special counsel, required to provide
services related to Pennsylvania regulatory and licensing
compliance and Medicare, and Medicaid payment and compliance.
Judy A. Robbins, the U.S. Trustee for Region 4, appointed Margaret
Barajas as the Patient Care Ombudsman for two of the Debtors:
Passage Village of Laurel Run Operations and Passage Longwood Manor
Operations.
An official committee of unsecured creditors has not been appointed
in the Debtors' cases, according to a court docket.
PASSAGE VILLAGE: PCO Files 4th 60-Day Report for Longwood
---------------------------------------------------------
Margaret Barajas, the appointed patient care ombudsman for Passage
Longwood Manor Operations, LLC, filed with the U.S. Bankruptcy
Court for the Southern District of West Virginia a fourth 60-day
report for Passage Longwood Manor.
The PCO reports that care staffing continues to be stable.
Residents are aware of the bankruptcy proceedings, and during this
reporting period, there were complaints about changes in staffing
related to the proceedings and resident observations that the staff
"seemed overworked."
A direct care staff reported to the local ombudsman that the home
has been hiring more medical technicians and laying off nurses. She
reported that she was leaving to pursue other employment and that
50% of the staff were new. Her concern was also that not all
residents are appropriate for a personal care home setting, and
that there have been more incidents of falls recently.
There were no concerns related to payroll relayed to the local
ombudsman during this reporting period. On Nov. 19, 2017, a medical
technician who wished to remain anonymous, approached local
ombudsman Ellen Berfond to report a concern with kitchen equipment.
She stated that the steamer was not working properly and food was
not being kept at proper temperatures and food was being served
cold.
She also reported it as a safety hazard because steam was shooting
out when the door was opened. Also, warming lights were not working
properly. Staff had gone to the administration but nothing was
done.
She also reported that the dietary budget had been reduced
significantly. Local ombudsman Berfond indicated that she would
advance the complaint, and staff indicated she would contact the PA
Department of Human Services, the regulatory entity.
The State Long-Term Care Ombudsman is confident that the facility
staff and interim administrator will continue to work closely with
the local ombudsmen.
A full-text copy of the PCO's Fourth 60-Day Report dated Dec. 17,
2017 is available at:
http://bankrupt.com/misc/wvsb3-17-30092-576.pdf
About Passage Midland, et al.
Passage Healthcare -- http://passagehealthcare.net-- is a senior
living care provider founded in 2013 by Andrew Turner and William
Lasky.
Passage Midland Meadows Operations, LLC and three affiliates filed
separate Chapter 11 bankruptcy petitions (Bankr. S.D. W.Va. Lead
Case No. 17-30092) on March 13, 2017. The affiliates are Passage
Healthcare Property, LLC; Passage Longwood Manor Operations, LLC;
and Passage Village of Laurel Run Operations, LLC.
The Debtors operate a senior health care facility in Pennsylvania
known as The Village of Lauren Run.
The petitions were signed by Andrew Turner, member-manager of
Passage Healthcare, LLC, manager of Passage Midland.
Passage Midland estimated $0 to $50,000 in assets and $1 million to
$10 million in liabilities as of the bankruptcy filing.
The Hon. Frank W. Volk presides over the cases.
Jackson Kelly PLLC is the Debtors' bankruptcy counsel. Capozzi
Adler, PC, is the Debtors' special counsel, required to provide
services related to Pennsylvania regulatory and licensing
compliance and Medicare, and Medicaid payment and compliance.
Judy A. Robbins, the U.S. Trustee for Region 4, appointed Margaret
Barajas as the Patient Care Ombudsman for two of the Debtors:
Passage Village of Laurel Run Operations and Passage Longwood Manor
Operations.
An official committee of unsecured creditors has not been appointed
in the Debtors' cases, according to a court docket.
PGX HOLDINGS: S&P Cuts CCR to 'B-' & Alters Outlook to Negative
---------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on PGX
Holdings Inc. (Progrexion) to 'B-' from 'B'. The outlook is
negative.
S&P said, "At the same time, we lowered our issue-level rating on
the company's first-lien debt to 'B' from 'B+'. The '2' recovery
rating is unchanged, indicating our expectation for substantial
recovery (70%-90%; rounded estimate: revised to 70% from 85%) in
the event of a default.
"Additionally, we lowered our issue-level rating on the company's
second-lien debt to 'CCC' from 'CCC+'. The '6' recovery rating is
unchanged, indicating our expectation for minimal recovery (0%-10%;
rounded estimate: 0%).
"The downgrade reflects our opinion that Progrexion's operating
performance will remain under pressure, limiting its ability to
increase earnings and generate free operating cash flow (FOCF). In
turn, we expect the headroom under the group's financial
maintenance covenants will continue to decline as the requisite
test levels step down starting in the fourth quarter of 2017.
"The negative outlook reflects Progrexion's narrowing covenant
cushion and weak recent operating performance. Over the next 12
months, we expect low-single-digit revenue growth and a modest
decline in customer acquisition costs, with the company barely
averting a covenant breach given its active step-down schedule.
"We could lower the rating over the next 12 months if Progrexion's
covenant cushion declines to the low-single-digit percentage area,
the company sustains negative FOCF, or if we consider the capital
structure to be unsustainable. This would likely result if its
reduction in operating expense does not materialize to avert a
breach on its first-lien term loan total net leverage covenant. We
could also lower the rating if the company's sponsor chooses not to
exercise its right to provide an equity cure to remedy a breach
with an equity cure or amendment.
"While unlikely over the next 12 months, we could raise the rating
by one notch if the company significantly improves EBITDA margins
and maintains covenant headroom of over 10% on a sustained basis
through its stepdown schedule. This would likely cause us to revise
our assessment of Progrexion's liquidity."
PLACE FOR ACHIEVING: Court Directs U.S. Trustee to Appoint PCO
--------------------------------------------------------------
Judge Mary Kay Vyskocil of the U.S. Bankruptcy Court for the
Southern District of New York directs the U.S. Trustee to appoint a
patient care ombudsman in the chapter 11 case of Debtor Place for
Achieving Total Health Medical, P.C.
Upon the request by the U.S. Trustee for Region 2 for the entry of
an order directing the appointment of a patient care ombudsman and
upon the consent of the Debtor, the Court has determined that such
appointment is necessary to monitor the quality of patient care and
to represent the interests of the Debtor's patients.
The Ombudsman must perform the duties required of a patient care
ombudsman and may apply for reasonable compensation for actual and
necessary services rendered as well as reimbursement for actual and
necessary expenses incurred after application to the court, notice
and court order.
The Ombudsman and the Ombudsman's representatives must be given
immediate access to patient records, without the need for further
court order, consistent with the authority of ombudsmen under the
Older Americans Act of 1965 and under non-federal laws governing
the State Long-Term Care Ombudsman program.
About Place for Achieving Total Health Medical
Based in New York, Place for Achieving Total Health Medical, P.C.,
is a small diet, nutrition & weight management company. It was
founded in 2001.
Place for Achieving Total Health Medical filed a Chapter 11
petition (Bankr. S.D.N.Y. Case No. 17-13478) on December 4, 2017.
The petition was signed by Eric Braverman, M.D., its president.
The Hon. Mary Kay Vyskocil presides over the case. The Debtor is
represented by Michael D. Siegel, Esq., at Siegel & Siegel, P.C.,
as counsel.
At the time of filing, the Debtor estimated $1,000 in assets and
$7.66 million in liabilities.
PREFERRED CARE: Appointment of PCO Necessary, Court Rules
---------------------------------------------------------
Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern
District of Texas entered an order directing the U.S. Trustee to
appoint a patient care ombudsman in the case of Preferred Care
Inc.
On Dec. 18, 2017, the Court held a hearing on its Order to Show
Cause Regarding the Appointment of a Patient Care Ombudsman. The
Court has considered the Show Cause Order, the response opposing
the appointment of a patient care ombudsman filed by Debtors, the
responses supporting the appointment of a patient care ombudsman
filed by the U.S. Trustee, the State of New Mexico, and the
Official Committee of Unsecured Creditors, the docket and pleadings
filed in these bankruptcy cases, the arguments of counsel, and the
evidence presented during the hearing.
The party opposing the appointment of a patient care ombudsman has
the burden of demonstrating that the appointment of a patient care
ombudsman is not necessary for the protection of patients.
Therefore, Debtors have the burden to demonstrate that the
appointment of a patient care ombudsman is not necessary for the
protection of patients in these cases.
Courts generally consider the following factors when deciding
whether the appointment of a patient care ombudsman is appropriate
under the specific facts of the case:
-- the cause of the bankruptcy;
-- the presence and role of licensing or supervising entities;
-- debtors' history of patient care;
-- the ability of the patients to protect their rights;
-- the level of dependency of the patients on the facility;
-- the likelihood of tension between the interest of the
patients and debtors;
-- the potential injury to the patients if debtors drastically
reduce their level of patient care;
-- the presence and sufficiency of internal safeguards to ensure
the appropriate level of care;
-- the impact of the cost of an ombudsman on the likelihood of a
successful reorganization; and
-- debtors' financial ability to maintain high-quality of
patient care.
After weighing each of the factors carefully, the Court finds and
concludes that Debtors have not met their burden of demonstrating
that appointment of an ombudsman is not necessary for the
protection of patients in Debtors' cases.
About Preferred Care Inc.
Preferred Care Inc. and 33 nursing homes affiliated with the
Preferred Care Group filed voluntary petitions for relief under
Chapter 11 of the United States Bankruptcy Code (Bankr. N.D. Tex.
Lead Case No. 17-44642) on November 13, 2017. The bankruptcy cases
are jointly administered and pending before the Honorable Mark X.
Mullin. The Debtors are represented by Stephen A. McCartin, Esq.,
and Mark C. Moore, Esq., at Gardere Wynne Sewell LLP, as Chapter 11
counsel.
Preferred Care Group is owned by Thomas Scott. He also owns
another company, Preferred Care Inc, which is the master lessee of
some of the facilities.
The Debtors sought bankruptcy protection amid multi-million dollar
personal injury lawsuits in Kentucky and New Mexico.
At the time of the filing, Preferred Care disclosed that it had
estimated assets and liabilities of $1,000,001 to $10 million.
On November 28, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors.
Preferred Care Partners Management Group LP and Kentucky Partners
Management LLC, unaffiliated companies that manage non-clinical
operations at Preferred Care facilities, also filed separate
bankruptcy cases on the same date.
PRIME SECURITY: Moody's Revises Outlook to Pos. & Affirms B1 CFR
----------------------------------------------------------------
Moody's Investors Service changed the ratings outlook of Prime
Security Services Borrower, LLC (dba "ADT") to positive, from
stable, after the company's recent announcement that it plans to
conduct an initial public offering ("IPO") of its stock through
which it expects to raise between $1.9 billion and $2.2 billion.
Proceeds from the IPO are expected to be used to pay down debt.
Moody's also assigned a Speculative Grade Liquidity rating of
SGL-2, and affirmed ADT's ratings, including its B1 Corporate
Family Rating ("CFR") and B1-PD Probability of Default rating, and
the respective Ba3 and B3 ratings on its first- and second-lien
debt issuances.
Assignments:
Issuer: Prime Security Services Borrower, LLC
-- Speculative Grade Liquidity Rating, Assigned SGL-2
Outlook Actions:
-- Outlook, Changed To Positive From Stable
Affirmations:
-- Probability of Default Rating, Affirmed B1-PD
-- Corporate Family Rating, Affirmed B1
-- Senior secured bank credit facilities, Affirmed Ba3 (LGD 3)
-- Senior secured bond debenture, Affirmed Ba3 (LGD 3)
-- Second-lien senior secured bond debenture, maturing 2023,
Affirmed B3 (LGD 5)
Issuer: The ADT Corporation
-- Senior senior secured bond debenture, various maturities,
Affirmed Ba3 (LGD 3)
RATINGS RATIONALE
The positive ratings outlook reflects the meaningfully improved
leverage metrics that will result from the application of IPO
proceeds to pay down roughly $1.8 billion of ADT's high-cost debt,
and the expectation for further improvements in operating metrics
and profitability. Moody's estimates that the expected debt
reduction would bring ADT's debt-to-recurring-monthly-revenue
("RMR") leverage measure (on a Moody's-adjusted basis) to below 29
times, from 34 times at present. If the IPO, which is expected to
occur in the week ending January 19, 2018, were to realize
incremental proceeds due to oversubscription, as much as $2.0
billion in debt could be repaid, or about 18% of ADT's $11.2
billion of September 30, 2017 funded debt.
IPO proceeds are expected to be used to pay down nearly $1.1
billion of ADT's $3.1 billion, 9.25% second-lien notes, and all of
a $750 million, 9.75% (unrated) PIK-preferred securities issuance.
The debt reductions would save the company some $188 million in
annual interest expense. Accordingly, profits and free cash flows
would improve, and Moody's steady-state free-cash-flow-to-debt
measure would rise to nearly 10%, from 6.8% as of September 30th.
Nevertheless, given that Apollo Global Management ("Apollo") issued
debt for a large dividend distribution less than a year after it
had combined Protection 1 ("P1") and ADT, the company's commitment
to sustaining conservative financial policies will be an important
credit consideration. Moody's notes that Apollo's stake in ADT will
be diluted as a result of the planned IPO, from near full ownership
to about 85%.
Moody's also expects that management's ongoing success with the
nearly two-year-old combination of P1 and ADT, as reflected in
improvements in attrition, creation multiples, average revenue per
user ("ARPU"), revenues, and debt/RMR, will be sustained, with the
potential for further operational improvements.
ADT's B1 CFR reflects the company's standing as the clear leader in
the North American residential alarm-monitoring and home-automation
services market, as well as the high leverage and remaining
integration challenges facing P1's management as it incorporates a
target several times P1's size. The company's revenue growth, in
the low single-digit percentages, is modest, but that is as
expected, since the impetus for P1's acquisition of ADT has been to
drive cost synergies by implementing P1's best practices throughout
the combined company.
The SGL-2 Speculative Grade Liquidity rating reflects ADT's good
liquidity, with the company having paid down, as of September 30th,
all drawings under its $350 million revolver, while building cash
to $171 million. Required debt amortization is minimal for the next
three years. Moody's expects cash flow from operations less capital
expenditures and subscriber growth spending of approximately $500
million over the next year, representing, as a percentage of
Moody's adjusted debt, mid-single-digit levels.
The positive rating outlook could be changed to stable if the
company fails to complete the IPO in the near term. The ratings
could be upgraded if the company continues to demonstrate improving
operating performance, declining ownership by the PE sponsor, and a
commitment to delevering, with improved attrition rates,
debt-to-RMR leverage sustained below 30 times, and FCF-to-debt in
the mid- to high-single-digit-percentages. The ratings could face
downward pressure if additional dividend recapitalizations or if
debt-funded acquisitions are made, if debt-to-RMR is sustained
above 35 times, or if FCF-to-debt falls to the low-single-digit
percentages.
The product of a May 2016, Apollo-backed combination of alarm
monitors Protection 1 and The ADT Corporation, Prime Security
Services Borrower, LLC is the leading provider of security,
interactive automation, and monitoring services for residential
(primarily) and business customers, and for independent
security-alarm dealers on a wholesale basis. Moody's expects the
company's 2018 total monitoring and services revenues (which
excludes equipment installation revenue) to be approximately $4.4
billion.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
PROWLER ACQUISITION: S&P Affirms 'CCC+' CCR, Outlook Negative
-------------------------------------------------------------
S&P Global Ratings said it affirmed its 'CCC+' corporate credit
rating on Houston-based Prowler Acquisition Corp. The outlook is
negative.
S&P said, "At the same time, we affirmed the 'CCC+' issue-level
rating on Prowler's senior secured first-lien term loan and
revolving credit facility. The '3' recovery rating is unchanged and
indicates an expectation for meaningful (50%-70%; rounded estimate:
60%) recovery in the event of default.
"We also affirmed our 'CCC-' senior secured issue-level rating on
Prowler's second-lien term loan. The '6' recovery rating on the
notes is unchanged, indicating our expectations for negligible
(0%-10%; rounded estimate: 0%) recovery in the event of a payment
default.
"The rating affirmation reflects our view that the company could
consider a distressed debt exchange offer over the next two years
if it is unable to refinance or extend its 2020 debt maturities.
While we expect Prowler to have adequate liquidity to cover its
operations and make its principal and interests payments over the
next 12 months, we do not believe the company has sufficient
liquidity to repay the debt obligations when due. In addition, we
believe the company is dependent on favorable business, financial,
and economic conditions to meet its near-term financial
obligations. Though fluctuations in commodity prices do not
directly affect EBITDA, stronger commodity prices affect it
indirectly because it would lead to additional new-build
opportunities that today make up a large percentage of total
EBITDA. In our view, Prowler relies heavily on new build projects
in the midstream sector to drive revenue growth because revenues
from the midstream sector represent more than half of the company's
total revenue. Any significant delays to major projects in the
midstream sector could, in our view, have a detrimental impact on
the company's revenue. Prowler's diversity of cash flows in the
midstream sector comes from several projects and is not dependent
on any one project for its revenue.
"The negative outlook reflects our expectations that Prowler does
not have sufficient cash on hand to repay its upcoming 2020 debt
maturities, which could result in lower ratings in the next 12
months. We expect adjusted debt leverage to improve year-over-year
to the 6x-6.5x range in 2018 and believe the company has sufficient
cash to service its debt payments for the next 12 months.
"We could lower the rating if liquidity deteriorates further,
resulting in a heightened risk of default or distressed debt
exchange offer in the next 12 months.
"We could consider higher ratings if market conditions notably
improve, allowing the company to use excess cash to reduce debt
such that we expect adjusted debt to EBITDA to remain below 5.5x.
We could also consider higher ratings if the company is able to
extend its debt maturities while maintaining leverage at current
levels."
PULLARKAT OIL: May Use Cash Collateral Through March 22
-------------------------------------------------------
Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern
District of Texas to authorized Pullarkat Oil Venture, L.L.C., on
an interim basis to use the proceeds of its prepetition accounts
receivables constituting the cash collateral of the Texas
Comptroller of Public Accounts for the payment of its reasonable
and necessary business expenses through the final hearing set for
March 22, 2018 at 1:30 p.m.
The approved Budget provides total monthly expenses of
approximately $225,964 during the cash collateral period.
The Comptroller is granted a replacement lien and security interest
in the Debtor's postpetition accounts receivable generated by the
Debtor's operations in an amount equal to the amount of cash
collateral used in accordance with 11 U.S.C. Section 361(2) in the
same priority and in the same nature, extent and validity as such
liens, if any, existed prepetition.
The Debtor will remit payment to the Texas Comptroller of Public
Accounts in the amount of $4,317 monthly, which includes interest
of 4.75%, with the first paying being due December 31, 2017. The
Debtor's first payment will be remitted to Attorney, William F.
Kunofsky, and deposited into attorney's iolta account.
The monthly adequate protection payment made to the Comptroller
will have priority in the Chapter 11 case or related bankruptcy
case if this case is converted to Chapter 7 in accordance with the
provisions of Section 507(b) of the Bankruptcy Code over all
administrative expenses of the kind specified in Section 507(a) of
the Bankruptcy Code. No costs or administrative expenses which
have been or may be incurred in this bankruptcy case, in any
conversion of this bankruptcy case, or in any proceeding related
thereto, and no priority claims, including, without limitation, any
super priority claims, are or will be prior to or on parity with
the Comptroller's claim for the adequate protection amount.
A full-text copy of the Interim Order is available at:
http://bankrupt.com/misc/txnb17-44743-30.pdf
About Pullarkat Oil Venture
Pullarkat Oil Venture, L.L.C., filed a Chapter 11 bankruptcy
petition (Bankr. N.D. Tex. Case No. 16-44743) on Nov. 20, 2017.
The petition was signed by Renil Radhakrishnan, president. Judge
Mark X. Mullin is assigned to the case. The Debtor is represented
by William F. Kunofsky, Esq., at the Law Office of William F.
Kunofsky. At the time of filing, the Debtor estimated $50,000 in
assets and $500,000 to $1 million in liabilities.
RESEARCH NOW: S&P Affirms 'B' CCR on Merger With Survey Sampling
----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' corporate credit rating on
Plano, Texas-based Research Now Group Inc. and removed the rating
from CreditWatch, were we had placed it with negative implications
on Oct. 13, 2017. The outlook is negative.
S&P said, "At the same time, we withdrew our 'B' issue-level rating
and '3 recovery rating on the company's senior secured first-lien
credit facility and our 'B-' issue-level rating and '5' recovery
rating on the company's senior secured second-lien term loan."
Research Now and Survey Sampling have successfully merged into the
parent legal entity New Insight Holdings Inc. (d/b/a Research Now
SSI). S&P said, "The corporate credit rating and negative outlook
reflect our assessment of the combined companies and the merger's
substantial execution risk, which we believe could lower the
combined companies' FOCF to debt to the 2% area over the next 12-18
months."
S&P said, "Our rating analysis also factors in our expectation for
hampering of core revenue growth from sales force consolidation,
delayed information technology platform integration,
higher-than-expected restructuring charges, and cash flow
volatility resulting from enterprise financial system assimilation.
We could lower the rating if management is unsuccessful in
integrating its operations and realizing cost synergies, resulting
in FOCF to debt remaining thin.
"The negative outlook reflects the substantial execution risk in
Research Now and Survey Sampling merging and integrating their
operations onto one business platform. We expect FOCF to debt will
be in the low-single-digit percentage area in 2018 and
lease-adjusted leverage will be in the high-5x area.
"We could lower the corporate credit rating if New Insight
Holdings' EBITDA growth through cost savings doesn't meet our
expectations. This could occur if FOCF to debt remains in the
low-single-digit percentage area on a sustained basis due to
revenue declines or if a delayed or mismanaged cost-savings plan
results in cost overruns and working capital swings. We could also
lower the rating if the company pursues further financial sponsor
rewarding activities such as special dividends.
"We could revise the outlook to stable if the company successfully
integrates the merged entities and shows substantial cost savings
in its business platform, leading to FOCF to debt approaching 5% on
a sustained basis."
ROBERT WINZINGER: Plan Exclusivity Period Extended Until March 5
----------------------------------------------------------------
The Hon. Kathryn C. Ferguson of the U.S. Bankruptcy Court for the
District of New Jersey has extended by ninety days the exclusive
periods for Robert T. Winzinger, Inc. to file a Plan and to solicit
acceptances of such Plan to March 5, 2018 and May 4, 2018,
respectively.
The Troubled Company Reporter has previously reported that the
Debtor asked the Court for exclusivity extension because its
exclusive period was slated to end Dec. 5, 2017.
About Robert T. Winzinger
Founded in 1960, Robert T. Winzinger, Inc. -- http://winzinger.com/
-- is a full-service contractor for roads, excavation, land
development and demolition, utility and marine construction, and
recycling technologies. Winzinger is certified as a W.B.E. with
the N.J. Dept. of Treasury - Division of Property Management &
Construction; Licensed Contractor with City of Philadelphia; Small
Business Enterprise with the City of Philadelphia; Small Business
Enterprise with the State of New Jersey; Public Works Contractor
with the State of New Jersey; Home Improvement Contractor with the
State of New Jersey Division of Consumer Affairs; and Maintains a
Certificate of Employee Report with the State of New Jersey.
Robert T. Winzinger, Inc., filed a Chapter 11 petition (Bankr.
D.N.J. Case No. 17-25972) on Aug. 7, 2017. The petition was signed
by Audrey Winzinger, vice president, secretary, and treasurer. At
the time of filing, the Debtor estimated $10 million to $50 million
in assets and $1 million to $10 million in liabilities.
The Hon. Kathryn C. Ferguson is the case judge.
The Debtor is represented by David A. Kasen, Esq., at Kasen &
Kasen.
SHIEKH SHOES: Committee Taps Province Inc. as Financial Advisor
---------------------------------------------------------------
The official committee of unsecured creditors of Shiekh Shoes LLC
seeks approval from the U.S. Bankruptcy Court for the Central
District of California to hire Province, Inc., as its financial
advisor.
The firm will assist the committee in negotiations with the Debtor;
conduct a limited sale process; analyze the Debtor's cash flow
budgets and overall financial condition; review financial reports;
analyze the Debtor's liquidity; and provide other services related
to the Debtor's Chapter 11 case.
The firm's hourly rates are:
Principal $690 - $745
Managing Director $580 - $630
Senior Director $540 - $570
Director $470 - $530
Senior Associate $375 - $460
Associate $340 - $390
Analyst $270 - $330
Paraprofessional $150
Province is a "disinterested person" as defined in Section 101(14)
of the Bankruptcy Code, according to court filings.
The firm can be reached through:
Carol Cabello
Province, Inc.
811 West 7th Street, Suite 910
Los Angeles, CA 90017
Tel: 702.685.5555
Fax: 702.685.5556
E-mail: info@provincefirm.com
About Shiekh Shoes LLC
Based in Ontario, California, Shiekh Shoes, LLC --
http://www.shiekhshoes.com/-- is a shoe retailer company with 79
locations in California, five in Nevada, 11 in Arizona, 11 in
Texas, two in New Mexico, one in Oregon, six in Illinois, eight in
Michigan, and five in Washington. Shiekh Shoes features brands
like Shiekh, Adidas, Puma, Timberland, Converse, among others. It
offers dress, casual, athletic, infant, toddler, youth, basketball,
running, training, and skate shoes; slippers, sandals, wedges,
pumps, boots, high heels, and sneakers; and apparel. The company
was founded in 1991.
Shiekh Shoes sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Cal. Case No. 17-24626) on Nov. 29, 2017. Shiekh
E. Ellahi, its chief executive officer, signed the petition.
At the time of the filing, the Debtor estimated assets and
liabilities of $50 million to $100 million.
Judge Vincent P. Zurzolo presides over the case.
The Debtor tapped SulmeyerKupetz, APC as its legal counsel; DJM
Realty Services, LLC as real estate lease consultant; and KGI
Advisors, Inc. as its financial advisor.
On Dec. 11, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. The committee is
represented by Cooley LLP.
SPECTRUM BRANDS: Sale of Batteries Biz No Impact on Fitch's BB IDR
------------------------------------------------------------------
The announcement that Spectrum Brands, Inc. has agreed to sell its
Batteries and Lighting business to Energizer Holdings, Inc. for $2
billion in cash has no immediate impact on its 'BB' Issuer Default
Rating (IDR)/Stable Outlook or credit profile, assuming a portion
of cash proceeds are used for debt paydown, according to Fitch
Ratings.
Fitch estimates the business generated approximately $870 million
in revenue (or around 17% of total revenue) in fiscal 2017 (ended
Sept. 2017) and around $170 million in EBITDA and is thus being
sold at a 12x multiple. Given the loss of an estimated $170 million
in EBITDA, Spectrum would need to reduce debt by approximately $700
million to maintain its current 4.0x leverage or reduce debt by at
least $300 million to maintain leverage under 4.5x, Fitch's current
downgrade sensitivity threshold. The sale of the Batteries
business, announced Jan. 16, 2017, is expected to close by the end
of the year. The company continues to explore strategic
alternatives for its Appliances business.
On Jan. 3, 2018, Spectrum announced it was exploring strategic
alternatives for its Global Batteries and Appliances business,
which generated $2 billion in revenue (40% of total) and $317
million in EBITDA (approximately one-third of total) in fiscal
2017. The division's brands include Rayovac, Black + Decker,
Remington and George Foreman. Revenue in the division has been down
mid-single digits each of the past two years, trailing the overall
company's modestly positive organic growth rate the past several
years. Batteries in particular have been in secular decline over
the longer term given increased reliance on chargeable devices and
less use of devices that employ batteries.
The sale of the Global Batteries and Appliances business would
improve the company's overall growth profile but reduce EBITDA by
approximately one-third to around $650 million while modestly
reducing business diversification. However, given its broad
exposure to consumer products end-markets like home improvement,
pet supplies, home and garden and auto care, the pro forma business
would remain highly diverse from a category perspective.
Assuming the successful divestiture of the Global Batteries and
Appliances business, Spectrum would pro forma generate
approximately $650 million of EBITDA on $3 billion of revenue and
could generate $200 million to $250 million of FCF annually. FCF
will depend on how much Spectrum can reduce cash interest expense,
which was $185 million in fiscal 2017, through debt paydown. Pro
forma leverage for the sale of both businesses would be 6x assuming
no debt paydown. The company would need to reduce total debt by
around $1 billion to maintain leverage under 4.5x.
Separately, the company is in negotiations to effect an equity
transaction with HRG Group, Inc., which owns approximately 60% of
Spectrum's equity. HRG is a publicly traded holding company that
has recently divested most of its other investments. Its primary
function is holding Spectrum shares. As such, HRG and Spectrum
could agree to an equity exchange whereby current owners of HRG
equity would become direct owners of Spectrum equity. As part of
the transaction, Spectrum could assume existing HRG debt (which
Fitch estimates to be around $400 million following recent asset
sales by HRG and assumed use of cash proceeds for debt reduction
from its reported level of $1.9 billion) as well as need to finance
up to $200 million to compensate HRG for tax loss assets (per HRG's
most recent proposal). Assuming a transaction increases Spectrum's
debt balances, Fitch would expect Spectrum to pay down additional
debt to reduce leverage to under 4.5x, in line with its historical
track record.
Fitch currently rates Spectrum as follows:
Spectrum Brands, Inc.
-- Long-Term Issuer Default Rating (IDR) 'BB';
-- Senior secured revolving credit facilities 'BBB-'/'RR1';
-- Senior secured term loans 'BBB-'/'RR1';
-- Senior unsecured notes 'BB'/'RR4'.
The Rating Outlook is Stable.
SRQ TAXI MANAGEMENT: Has Until March 19 to Exclusively File Plan
----------------------------------------------------------------
The Hon. Michael G. Williamson of the U.S. Bankruptcy Court for the
Middle District of Florida has extended, at the behest of SRQ Taxi
Management, LLC, the Debtor's plan filing deadline and exclusive
plan filing deadline through and including March 19, 2018.
The exclusive solicitation period has been extended through the
conclusion of the confirmation hearing.
A copy of the court order is available at:
http://bankrupt.com/misc/flmb17-07782-65.pdf
About SRQ Taxi Management
SRQ Taxi Management, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. M.D. Fla. Case No. 17-07782) on Aug. 31, 2017, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by David S.Jennis, Esq., at Jennis Law Firm.
SS&C TECHNOLOGIES: S&P Puts 'BB' CCR on CreditWatch Negative
------------------------------------------------------------
S&P Global Ratings placed its 'BB' corporate credit rating on
Windsor, Conn.-based SS&C Technologies Inc. on CreditWatch with
negative implications.
The CreditWatch placement follows SS&C's Jan. 11, 2018 announcement
that it intends to acquire DST Systems Inc., a technology services
and business operations outsourcing provider for mutual funds,
wealth managers, and healthcare plan and pharmacy solutions
providers. S&P said, "We expect the transaction to be almost
exclusively debt funded, with a potential for partial equity
financing, resulting in adjusted leverage exceeding 5x at
transaction close (before cost synergies) under currently proposed
capital structures. Although SS&C has an established track record
of successfully integrating large acquisitions while paying down
debt, given the scale of the incremental debt and a three-year
timeline to deliver on the proposed $150 million run-rate cost
savings plan, we view the potential for leverage to remain above
our downside trigger of 5x for the 12 months following the
transaction's close."
S&P said, "We will monitor any further developments related to the
proposed acquisition, including our assessment of the company's
final acquisition financing structure, and deleveraging potential
in the 12 months following transaction close, and resolve the
CreditWatch listing when this information regarding the transaction
and financing becomes available. In the event that we lower the
rating on SS&C, the downgrade is likely to be limited to one
notch."
SUNSHINE SEATTLE: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
An official committee of unsecured creditors has not yet been
appointed in the Chapter 11 case of Sunshine Seattle Enterprises,
LLC, as of Jan. 16, according to a court docket.
About Sunshine Seattle Enterprises
Sunshine Seattle is based in Seattle, Wash. An involuntary Chapter
11 petition (Bankr. W.D. Wash. Case No. 17-14983) was filed against
Sunshine Seattle Enterprises LLC on Nov. 14, 2017, by its creditor
Henry Kuo-Chiang Ku. The Hon. Timothy W. Dore presides over the
case.
Larry B. Feinstein, Esq., at Vortman & Feinstein, is the
petitioning creditor's bankruptcy counsel.
Jeffrey B. Wells, Esq. and Emily Jarvis, Esq., of Wells and Jarvis,
P.S., serve as the Debtor's bankruptcy counsel.
SUNSHINE SEATTLE: Wants to Use Cash for February 2018 Expenses
--------------------------------------------------------------
Sunshine Seattle Enterprises, LLC, asks the U.S. Bankruptcy Court
for the Western District of Washington for a second interim order
authorizing continued use of the cash collateral of Henry
Kuo-Chiang Ku, pending further final hearing.
The proposed February 2018 Budget provides total expenses of
approximately $49,367.
The second interim hearing on the Debtor's Motion for authorization
to use cash collateral is set for February 2, 2018 at 9:30 a.m.
Written response to the Debtor's request are due not later than the
response date, which is January 26, 2018.
The Debtor will provide adequate protection as follows:
(a) Upon request of Henry Ku, the Debtor will immediately
provide proof of all hazard insurance for all property, and will
maintain adequate insurance on all property at all times.
(b) The Debtor will maintain its property in good condition
and repair.
(c) At this time, there is no request from Henry Ku for
adequate protection payments.
(d) During the relevant time period the Debtor will ensure
that no expenditure exceeds the amount set forth on the Budget by
more than 10% for any line-item, and that overall expenditures not
exceed 5% of the authorized budget.
(e) Henry Ku will have a lien on post-petition inventory,
chattel paper, accounts, equipment and general intangibles; whether
any of the foregoing is owned now or acquired later; all
accessions, additions, replacements, and substitutions relating to
any of the foregoing; all records of any kind relating to any of
the foregoing; all proceeds relating to any of the foregoing
(including insurance, general intangibles and other accounts
proceeds).
A full-text copy of the Debtor's Motion is available at:
http://bankrupt.com/misc/wawb17-14983-44.pdf
About Sunshine Seattle Enterprises
Sunshine Seattle is based in Seattle, Wash. An involuntary Chapter
11 petition (Bankr. W.D. Wash. Case No. 17-14983) was filed against
Sunshine Seattle Enterprises LLC on Nov. 14, 2017, by its creditor
Henry Kuo-Chiang Ku. The Hon. Timothy W. Dore presides over the
case.
Larry B. Feinstein, Esq., at Vortman & Feinstein, is the
petitioning creditor's bankruptcy counsel.
Jeffrey B. Wells, Esq. and Emily Jarvis, Esq. of Wells and Jarvis,
P.S., serve as the Debtor's bankruptcy counsel.
SURVEY SAMPLING: S&P Raises CCR to 'B' on Merger With Research Now
------------------------------------------------------------------
S&P Global Ratings raised its corporate credit rating on Shelton,
Conn.-based Survey Sampling International LLC to 'B' from 'B-' and
removed the rating from CreditWatch, where it had placed it with
developing implications on Oct. 13, 2017. The outlook is negative.
S&P said, "At the same time we withdrew our 'B-' issue-level rating
and '3' recovery rating on the company's first-lien credit facility
and our 'CCC' issue-level rating and '6' recovery rating on the
company's second-lien loan."
Survey Sampling and Research Now have successfully merged into the
parent legal entity New Insight Holdings Inc. (d/b/a Research Now
SSI). S&P said, "The corporate credit rating and negative outlook
reflect our assessment of the combined companies and the merger's
substantial execution risk, which we believe could lower the
combined companies' FOCF to debt to the 2% area over the next 12-18
months. Our rating analysis also factors in our expectation for
hampering of core revenue growth from sales force consolidation,
delayed information technology platform integration,
higher-than-expected restructuring charges, and cash flow
volatility resulting from enterprise financial system assimilation.
We could lower the rating if management is unsuccessful in
integrating its operations and realizing cost synergies, resulting
in FOCF to debt remaining thin.
"The negative outlook reflects the substantial execution risk in
Research Now and Survey Sampling merging and integrating their
operations onto one business platform. We expect FOCF to debt will
be in the low-single-digit percentage area in 2018 and
lease-adjusted leverage will be in the high-5x area.
"We could lower the corporate credit rating if New Insight
Holdings' EBITDA growth through cost savings doesn't meet our
expectations. This could occur if FOCF to debt remains in the
low-single-digit percentage area on a sustained basis due to
revenue declines or if a delayed or mismanaged cost-savings plan
results in cost overruns and working capital swings. We could also
lower the rating if the company pursues further financial sponsor
rewarding activities such as special dividends.
"We could revise the outlook to stable if the company successfully
integrates the merged entities and shows substantial cost savings
in its business platform, leading to FOCF to debt approaching 5% on
a sustained basis."
TRIAD WELL: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Triad Well Service, LLC
PO Box 549
Brookshire, TX 77423-0549
Type of Business: Triad Well Service is a service supplier that
administers both support and products to the oil
and gas industry. The company provides its
customers with products and services that will
enhance well production, and prevent common
ongoing and future complications. Located in
Houston, Texas, Triad has a worldwide outlook
and can arrange for the global shipping and
servicing of its products. Recently, the
company's main focus has been servicing the
Eagle Ford basin with a predominant emphasis in
paraffin control.
http://triad13.com/triad-well-service
Chapter 11 Petition Date: January 15, 2018
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Case No.: 18-30150
Judge: Hon. Jeff Bohm
Debtor's Counsel: Richard L Fuqua, II, Esq.
FUQUA & ASSOCIATES, P.C.
5005 Riverway, Ste. 250
Houston, TX 77056
Tel: 713-960-0277
E-mail: fuqua@fuqualegal.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael T. Kramer, president.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/txsb18-30150_creditors.pdf
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/txsb18-30150.pdf
TUCSON ONE: Taps Southwest Appraisal Associates as Appraiser
------------------------------------------------------------
Tucson One, LLC, received approval from the U.S. Bankruptcy Court
for the District of Arizona to hire Southwest Appraisal Associates
Inc.
SAS will conduct an appraisal of the Debtor's real property located
at 3700 E. Ft. Lowell Road, Tucson, Arizona. The firm will be paid
$3,600 for its services.
Steven Cole, a real estate appraiser and president of SAS,
disclosed in a court filing that he and other members of his firm
are "disinterested" as defined in section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Steven R. Cole, MAI, SRA
P.O. Box 16156
Tucson, AZ 85732
Phone: (520) 327-0000
Fax: (520) 327-3974
Email: steve@swaa.biz
About Tucson One
Headquartered in Ventura, California, Tucson One, LLC, is a single
asset real estate as that term is defined in 11 U.S.C. Section
101(51B). The Debtor filed for Chapter 11 bankruptcy protection
(Bankr. D. Ariz. Case No. 17-11219) on Sept. 22, 2017, estimating
its assets and liabilities at between $1 million and $10 million.
The petition was signed by Henry Goldman as member and manager.
Judge Brenda Moody Whinery presides over the case. Neff & Boyer,
P.C., is the Debtor's bankruptcy counsel.
UNIVERSAL LAND: Taps Mossy Oak Properties as Broker
---------------------------------------------------
Universal Land & Livestock, LLC, seeks approval from the U.S.
Bankruptcy Court for the Southern District of Indiana to hire Mossy
Oak Properties as broker.
The firm will assist the Debtor in closing the sale of its real
properties to Hicks Farms Inc. and Pinnacle Heartland Operating
Company, LLC. Mossy Oak will be paid a commission of 5% of the
sales price.
Jeff Michalic, broker and owner of Mossy Oak, disclosed in a court
filing that he does not have connection with the Debtor's creditors
or any party that holds interest adverse to its bankruptcy estate.
Mossy Oak can be reached through:
Jeff Michalic
Mossy Oak Properties
921 N. US 41
Rockville, IN 47872
Phone: 765-505-4155
Email: jeffm@mossyoakproperties.com
About Universal Land
Universal Land & Livestock, LLC, owns and operates a cattle-fishing
operation located in Vermillion County, Indiana. The cattle
finishing business includes a cow/calf operation in house breeding,
and finishing cattle off to market weight fats. The Company owns
3,800 acres of farm ground located in Vermillion County, Indiana;
Vigo County, Indiana; and Edgar County, Illinois.
Universal Land filed for Chapter 11 bankruptcy protection (Bankr.
S.D. Ind. Case No. 17-80750) on Nov. 9, 2017, estimating its assets
and debt at between $10 million and $50 million. The petition was
signed by Peter Krieger, partner.
Judge Jeffrey J. Graham presides over the case.
John Joseph Allman, Esq., and David R. Krebs, Esq., at Hester Baker
Krebs LLC, serves as the Debtor's bankruptcy counsel.
USI SERVICES: Taps Equity Partners as Investment Banker
-------------------------------------------------------
USI Services Group, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to hire Equity Partners HG,
LLC, as investment banker.
The firm will help USI and its affiliates find either a strategic
investor or a buyer of their businesses.
Equity Partners will be compensated for its services with a monthly
advance fee of $7,500, and if it is successful in presenting a bona
fide offer, its fee will be the greater of $200,000 or a percentage
based on transaction amount, based on a descending scale of 7% for
the first $4 million of gross value.
In addition, the firm will receive $20,000 as advance payment for
its expenses.
Matthew LoCascio, managing director of Equity Partners, disclosed
in a court filing that his firm is "disinterested" as defined in
section 101(14) of the Bankruptcy Code.
Equity Partners can be reached through:
Matthew LoCascio
Equity Partners HG, LLC
16 N. Washington St., Suite 102
Easton, MD 21601
Phone: (866) 969-1115
E-mail: MLoCascio@EquityPartnersHG.com
About USI Services Group
USI Services Group, Inc., provides facility management services and
solutions to pharmaceutical campuses, commercial office buildings,
shopping mall or national retailers, industrial complex or major
entertainment venues. USI offers complete janitorial service
programs, hard surface floor care, carpet care programs, window
cleaning, post construction cleaning, landscaping & design, snow
management, parking lot lighting, parking lot maintenance, parking
lot striping, facility management, 3rd party contract management,
HVAC services, security services, electronic security solutions and
energy management. The company is headquartered in Union, New
Jersey.
USI Services Group and its affiliates filed Chapter 11 petitions
(Lead Bankr. D.N.J. Case No. 18-10153) on Jan. 3, 2018. The
petitions were signed by Frederick G. Goldring, president. At the
time of filing, USI estimated at least $50,000 in assets and $1
million to $10 million in liabilities.
The cases are assigned to Judge John K. Sherwood.
The Debtors are represented by Stuart Gold, Esq., at Mandelbaum
Salsburg P.C.
USI SERVICES: Taps HBM Management as Financial Advisor
------------------------------------------------------
USI Services Group, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to hire HBM Management
Associates, LLC as its financial advisor.
The firm will assist in the preparation of the cash collateral
budget; negotiate with creditors of USI and its affiliates; provide
advice regarding cost savings; prepare the initial and monthly
operating reports; advise the Debtors regarding the sale of their
business; and provide other services related to their Chapter 11
cases.
Harry Malinowski and Marc Ross, the HBM professionals who will be
providing the services, charge $450 per hour and $410 per hour,
respectively. However, the firm's fees will be capped at $12,000
per week.
HBM received a retainer in the sum of $50,000 prior to the petition
date.
Mr. Malinowski disclosed in a court filing that he is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
HBM can be reached through:
Harry Malinowski
HBM Management Associates, LLC
6 Elmwood Lane
Syosset, NY 11791-6122
Phone: (516) 364-5409
About USI Services Group
USI Services Group, Inc., provides facility management services and
solutions to pharmaceutical campuses, commercial office buildings,
shopping mall or national retailers, industrial complex or major
entertainment venues. USI offers complete janitorial service
programs, hard surface floor care, carpet care programs, window
cleaning, post construction cleaning, landscaping & design, snow
management, parking lot lighting, parking lot maintenance, parking
lot striping, facility management, 3rd party contract management,
HVAC services, security services, electronic security solutions and
energy management. The company is headquartered in Union, New
Jersey.
USI Services Group and its affiliates filed Chapter 11 petitions
(Lead Bankr. D.N.J. Case No. 18-10153) on Jan. 3, 2018. The
petitions were signed by Frederick G. Goldring, president. At the
time of filing, USI estimated at least $50,000 in assets and $1
million to $10 million in liabilities.
The cases are assigned to Judge John K. Sherwood.
The Debtors tapped Stuart Gold, Esq., at Mandelbaum Salsburg P.C.
as counsel; Equity Partners HG, LLC, as investment banker; and HBM
Management Associates, LLC as financial advisor.
VESTER INVESTMENTS: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Vester Investments, LLC
199 E. Pearl Avenue, Suite 102
Jackson, WY 83001
Type of Business: Vester Investments, LLC, is a privately held
investment company based in Jackson,
Wyoming.
Chapter 11 Petition Date: January 16, 2018
Court: United States Bankruptcy Court
District of Wyoming (Cheyenne)
Case No.: 18-20021
Debtor's Counsel: Bradley T Hunsicker, Esq.
MARKUS WILLIAMS YOUNG & ZIMMERMANN LLC
106 East Lincolnway, Suite 300
Cheyenne, WY 82001
Tel: 307-778-8178
Fax: 307-778-8953
E-mail: bhunsicker@markuswilliams.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Christopher Hawks, manager.
The Debtor did not file a list of its 20 largest unsecured
creditors together with the petition.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/wyb18-20021.pdf
VIZIENT INC: Moody's Ups Corp. Family Rating to B1; Outlook Stable
------------------------------------------------------------------
Moody's Investors Service upgraded the ratings of Vizient, Inc.,
including the Corporate Family Rating (CFR) to B1 from B2 and
Probability of Default Rating to B1-PD from B2-PD. Moody's also
upgraded the senior secured rating to Ba3 from B1 and the senior
unsecured notes rating to B3 from Caa1. Concurrently, Moody's
assigned a Ba3 rating to the new term loan A. The ratings outlook
is stable.
The upgrade of the ratings reflects Vizient's improving earnings,
liquidity and cash flow outlook. Moody's expects that the company's
debt to EBITDA will decline to the low-4 times range in the year
ahead through earnings growth and debt repayment. With integration
costs waning and the deferred tax payment stemming from the
MedAssets acquisition now complete, Moody's believes free cash flow
will materially improve to over $100 million per year.
Vizient is refinancing its bank debt. The revolver is increasing to
$300 million from $105 million and the company is issuing a $500
million term loan A. Proceeds from the term loan A and $100 million
of revolver borrowings are being used to reduce the term loan B by
about $600 million to $450 million. Vizient is also repricing the
existing term loan B. The transaction is leverage neutral, but will
reduce interest expense by about $8 million per year.
Vizient, Inc.
The following ratings were upgraded:
- Corporate Family Rating to B1 from B2
- Probability of Default Rating to B1-PD from B2-PD
- $300 million (upsized from $105 million) senior secured
revolving credit facility to Ba3 (LGD 3) from B1 (LGD 3)
- $450 million (downsized from $1,047 million outstanding)
senior secured term loan B to Ba3 (LGD 3) from B1 (LGD 3)
- $600 million senior unsecured notes to B3 (LGD 5) from Caa1
(LGD 6)
The following rating was assigned:
- $500 million senior secured first lien term loan A at Ba3 (LGD
3)
The outlook is stable.
RATINGS RATIONALE
The B1 Corporate Family Rating reflects Vizient's high financial
leverage, significant pricing pressure in the Group Purchasing
Organization (GPO) business, and history of debt funded
acquisitions. Pro forma for the refinancing, the company had
adjusted debt to EBITDA of 4.7 times for the twelve months ended
September 30, 2017. However, the rating is supported by the
company's solid scale and market presence as the largest GPO in the
US, good geographic and customer diversification and a very good
liquidity profile.
The stable outlook reflects Moody's view that Vizient's financial
leverage will improve, but remain relatively high. The outlook also
reflects Moody's belief that free cash flow will improve
significantly as acquisition related costs roll off.
The ratings could be upgraded if Vizient significantly improves its
earnings and cash flow and further diversifies the business by
growing the healthcare advisory and analytics segments.
Specifically, if adjusted debt to EBITDA is sustained below 3.5
times and free cash flow to debt increases to the high single
digits, the ratings could be upgraded.
The ratings could be downgraded if earnings decline, liquidity
deteriorates, free cash flow remains negative or the company
engages in material debt-financed acquisitions or dividends. If
debt to EBITDA is expected to be sustained above 4.5 times the
ratings could be downgraded.
Vizient generates about 67% of revenue from its GPO business. The
company also provides advisory and analytics services. Vizient's
customers range from independent, community-based healthcare
organizations to large, integrated hospitals and academic medical
centers. The company operates under a participant member ownership
structure and has revenue of approximately $1.2 billion.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
VIZIENT INC: S&P Assigns 'BB-' Ratings on New Sr. Secured Debts
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating to Vizient
Inc.'s new revolver, term loan A, and term loan B. The recovery
rating is '2', indicating S&P's expectation for substantial
(70%-90%; rounded estimate: 70%) recovery in the event of a payment
default. The transaction does not affect leverage. The company will
use the proceeds of the revolver and term loan A to repay a portion
of its existing term loan B. In addition, the balance of the term
loan B is being repriced.
The 'B+' corporate credit rating on Vizient reflects the company's
leading but specialized focus as a group purchasing organization
(GPO), or a negotiator of supply contracts to hospitals and other
health care providers. It also reflects S&P's expectation that
leverage will remain between the mid-4x area and 5x over the next
year.
RATINGS LIST
Vizient Inc.
Corporate Credit Rating B+/Stable/--
New Rating
Vizient Inc.
Senior Secured BB-
Recovery Rating 2 (70%)
WHOLELIFE PROPERTIES: Trustee Seeks to Expand Scope of F&P Services
-------------------------------------------------------------------
The Chapter 11 trustee for WholeLife Properties, LLC, asks the U.S.
Bankruptcy Court for the Northern District of Texas to authorize
Forshey & Prostok, LLP, to provide additional services.
In his amended application, Daniel Sherman asked the court to allow
his special counsel to represent and assist him in connection with
any actions necessary to complete the closing of the sale of the
Debtor's properties, and to provide other services requested by the
trustee.
The properties include an undeveloped real estate located at the
intersection of Collin-McKinney Parkway and Alma Road, McKinney,
Texas; and 200 TPC social memberships at Craig Ranch.
The trustee tapped the firm to represent him in connection with
Flyby LLC's and REI Acquisitions LLC's request to temporarily put
on hold the bankruptcy court's ruling that approved the sale of the
properties pending appeal of the ruling.
About Wholelife Properties
WholeLife Properties, LLC, owns two undeveloped tracts of land
located in McKinney, Texas, that is intended to be developed into a
mixed use complex and 200 social memberships to the TPC at Craig
Ranch, a private golf club in McKinney, Texas.
WholeLife Properties sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Case No. 16-42274) on June 7,
2016. The petition was signed by John B. Lowery, as sole member of
WholeLife Companies, Inc., sole member of WholeLife Properties,
LLC. Melissa Hayward, Esq., at Franklin Hayward LLP, is the
Debtor's general bankruptcy counsel.
At the time of the filing, WholeLife estimated assets of $10
million to $50 million and debt of $1 million to $10 million.
The case is assigned to Judge Mark X. Mullin.
To date, no committee of unsecured creditors has been appointed.
Mr. Lowery was involved in another Chapter 11 debtor, Cornerstone
Ministries Investments, Inc., which filed Feb. 10, 2008 (Bankr.
N.D. Ga. Case No. 08-20355). Mr. Lowery joined Cornerstone in
approximately 2004 to oversee several single family housing
projects that were being developed by Cornerstone.
Daniel J. Sherman was appointed as the Chapter 11 Trustee of
WholeLife Properties. The trustee hired Sherman & Yaquinto,
L.L.P., as his bankruptcy counsel; and Forshey & Prostok, LLP and
Richard E. Schellhammer, Esq., as his special counsel.
WILLIAM FOCAZIO: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Affiliates that filed voluntary petitions for relief under Chapter
11 of the Bankruptcy Code:
Debtor Case No.
------ --------
William Focazio, MD, PA 18-10752
999 Clifton Avenue
Clifton, NJ 07013
Endo Surgical Center of North Jersey 18-10753
999 Clifton Avenue
Clifton, NJ 07013
Fenner Ave., LLC 18-10755
Business Description: William Focazio, MD, PA, Endo Surgical
Center of North Jersey, and Fenner Ave., LLC
are privately held companies that operate in
the health care industry specializing in
internal medicine and gastroenterology.
Chapter 11 Petition Date: January 13, 2018
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Judge: Hon. Vincent F. Papalia
Debtors' Counsel: Sari Blair Placona, Esq.
TRENK, DIPASQUALE, DELLA FERA & SODONO, P.C.
347 Mount Pleasant Avenue
West Orange, NJ 07052
Tel: 973-243-8600
E-mail: splacona@trenklawfirm.com
- and -
Anthony Sodono, III, Esq.
TRENK, DIPASQUALE, DELLA FERA & SODONO, P.C.
347 Mt. Pleasant Ave., Ste. 300
West Orange, NJ 07052
Tel: 973-243-8600
Fax: 973-243-8677
E-mail: asodono@trenklawfirm.com
Assets and Liabilities:
Total Total
Assets Liabilities
--------- -----------
William Focazio, MD, PA $1,130,000 $12,830,000
Endo Surgical Center $1,170,000 $16,490,000
The petitions were signed by William Focazio, M.D., principal.
Copies of the petitions that contain, among other items, lists of
the Debtors' 20 largest unsecured creditors is available for free
at:
http://bankrupt.com/misc/njb18-10752.pdf
http://bankrupt.com/misc/njb18-10753.pdf
XS RANCH FUND: Plan Filing Period Extended Through March 15
-----------------------------------------------------------
Judge Roger L. Efremsky of the U.S. Bankruptcy Court for the
Northern District of California has extended XS Ranch Fund, VI,
L.P.'s exclusive period to file a Chapter 11 plan through and
including March 15, 2018 and XS Ranch's exclusive period to solicit
acceptances to a plan through and including April 16, 2018.
The Troubled Company Reporter has previously reported that the
Debtor asked the Court to extend its exclusivity periods to avoid
the undue delay and expense that would result in the event of
competing plans being filed in this case. The Debtor said that it
has already drafted and filed a Chapter 11 plan of reorganization.
Because the Debtor's proposed Chapter 11 plan of reorganization
provides for payment in full of all general unsecured creditors'
claims, the Debtor claimed that the extension of the exclusivity
periods would not prejudice and would actually benefit the rights
of parties-in-interest.
About XS Ranch Fund VI L.P.
Dr. Hasso Plattner, David Winton, Granite Land Company, and Peter
Mainstain filed an involuntary petition (Bankr. N.D. Cal. Case No.
16-31367) against XS Ranch Fund VI, L.P for relief under Chapter 7
of the Bankruptcy Code on December 23, 2016. On May 31, 2017, the
Debtor consented to conversion of the Bankruptcy Case to one under
Chapter 11. On June 1, the Court entered its order converting the
Bankruptcy Case to Chapter 11.
The petitioning creditors were represented by Patricia H. Lyon,
Esq., at French and Lyon; Terry J. Mollica, Esq., at Chiarelli &
Mollica, LLP; Mary Ellmann Tang, Esq., at French Lyon Tang; and
David C. Winton, Esq., at the Law Offices of David C. Winton.
The Debtor is represented by Pamela Egan, Esq., at Rimon P.C.; and
Richard H. Golubow, Esq., Garrick A. Hollander, Esq., and Andrew
Levin, Esq., at Winthrop Couchot.
On July 28, 2017, the U.S. Trustee for Region 17 appointed an
official committee of unsecured creditors. The committee hired
Sheppard Mullin Richter & Hampton LLP, as counsel.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Brian J. Forte
Bankr. M.D. Fla. Case No. 18-00078
Chapter 11 Petition filed January 5, 2018
represented by: Joel S. Treuhaft, Esq.
E-mail: jstreuhaft@yahoo.com
In re Douglas Anthony Smith
Bankr. D.N.J. Case No. 18-10258
Chapter 11 Petition filed January 5, 2018
Filed Pro Se
In re Mitch Budhram Realty
Bankr. E.D.N.Y. Case No. 18-40050
Chapter 11 Petition filed January 5, 2018
See http://bankrupt.com/misc/nyeb18-40050.pdf
Filed Pro Se
In re Paramjit S. Bains
Bankr. E.D.N.Y. Case No. 18-40059
Chapter 11 Petition filed January 5, 2018
represented by: Alla Kachan, Esq.
E-mail: alla@kachanlaw.com
In re Flora E. Weimerskirch
Bankr. E.D. Wash. Case No. 18-00037
Chapter 11 Petition filed January 5, 2018
represented by: Kevin O’Rourke, Esq.
SOUTHWELL AND O'ROURKE
E-mail: kevin@southwellorourke.com
In re K and K, Inc.
Bankr. W.D. Mo. Case No. 18-40045
Chapter 11 Petition filed January 7, 2018
See http://bankrupt.com/misc/mowb18-40045.pdf
represented by: Colin N. Gotham, Esq.
EVANS & MULLINIX, P.A.
E-mail: Cgotham@emlawkc.com
In re Behavioral Medicine and Addictive Disorders, Inc.
Bankr. S.D. Tex. Case No. 18-30066
Chapter 11 Petition filed January 4, 2018
See http://bankrupt.com/misc/txsb18-30066.pdf
Filed Pro Se
In re TAFF, LLC
Bankr. D. Ariz. Case No. 18-00177
Chapter 11 Petition filed January 8, 2018
See http://bankrupt.com/misc/azb18-00177.pdf
represented by: Allan D. NewDelman, Esq.
ALLAN D. NEWDELMAN, P.C.
E-mail: anewdelman@adnlaw.net
In re Deepak B. Vasandani and Mira Vasandani
Bankr. C.D. Cal. Case No. 18-10258
Chapter 11 Petition filed January 8, 2018
represented by: Sheila Esmaili, Esq.
LAW OFFICES OF SHEILA ESMAILI
E-mail: selaw@bankruptcyhelpla.com
In re Neil Gerald McGowan
Bankr. N.D. Cal. Case No. 18-40054
Chapter 11 Petition filed January 8, 2018
represented by: David M. Sternberg, Esq.
DAVID M. STERNBERG AND ASSOC.
E-mail: DMSLaw@ix.netcom.com
In re Michael Allen Worley
Bankr. M.D. La. Case No. 18-10017
Chapter 11 Petition filed January 8, 2018
represented by: Arthur A. Vingiello, Esq.
STEFFES, VINGIELLO & MCKENZIE, LLC
E-mail: avingiello@steffeslaw.com
In re Raffi Keikian
Bankr. D. Mass. Case No. 18-40034
Chapter 11 Petition filed January 8, 2018
represented by: Timothy M. Mauser, Esq.
LAW OFFICE OF TIMOTHY MAUSER, ESQ.
E-mail: tmauser@mauserlaw.com
In re Gen-Kal Pipe & Steel Corp
Bankr. D.N.J. Case No. 18-10376
Chapter 11 Petition filed January 8, 2018
See http://bankrupt.com/misc/njb18-10376.pdf
represented by: Lee Martin Perlman, Esq.
E-mail: ecf@newjerseybankruptcy.com
In re 687 Salem Corp
Bankr. E.D.N.Y. Case No. 18-70109
Chapter 11 Petition filed January 8, 2018
See http://bankrupt.com/misc/nyeb18-70109.pdf
Filed Pro Se
In re Sharat Kumra
Bankr. E.D.N.Y. Case No. 18-70129
Chapter 11 Petition filed January 8, 2018
represented by: Richard S. Feinsilver, Esq.
E-mail: feinlawny@yahoo.com
In re AMDIRADDO, LLC
Bankr. N.D.N.Y. Case No. 18-10010
Chapter 11 Petition filed January 8, 2018
See http://bankrupt.com/misc/paeb18-10112.pdf
represented by: Christian H. Dribusch, Esq.
THE DRIBUSCH LAW FIRM
E-mail: cdribusch@chdlaw.net
In re Major Events Group LLC
Bankr. E.D. Pa. Case No. 18-10112
Chapter 11 Petition filed January 8, 2018
See http://bankrupt.com/misc/paeb18-10112.pdf
represented by: Michael P. Kutzer, Esq.
E-mail: mpkutzer1@gmail.com
In re Fitness Factory Capitol Heights, Inc.
Bankr. D. Md. Case No. 18-23311
Chapter 11 Petition filed January 5, 2018
See http://bankrupt.com/misc/mdb18-23311.pdf
represented by: Sheila Durant, Esq.
LAW OFFICE SHEILA DURANT
E-mail: durantsheila@gmail.com
In re Theresa I. Brown
Bankr. M.D. Ala. Case No. 18-30051
Chapter 11 Petition filed January 9, 2018
represented by: Robert D McWhorter, Jr., Esq.
INZER, HANEY & MCWHORTER, P.A.
E-mail: rdmcwhorter@bellsouth.net
In re Diane Estellita Adams
Bankr. D.D.C. Case No. 18-00020
Chapter 11 Petition filed January 9, 2018
Filed Pro Se
In re Gary Michael English
Bankr. M.D. Fla. Case No. 18-00142
Chapter 11 Petition filed January 9, 2018
represented by: David R. McFarlin, Esq.
FISHER RUSHMER, PA
E-mail: dmcfarlin@fisherlawfirm.com
In re Junie Conrad Omari Bowers
Bankr. S.D. Fla. Case No. 18-10298
Chapter 11 Petition filed January 9, 2018
See http://bankrupt.com/misc/flsb18-10298.pdf
represented by: Gregory S. Grossman, Esq.
SEQUOR LAW PA
E-mail: ggrossman@sequorlaw.com
In re Andrew Nathaniel Skeene
Bankr. S.D. Fla. Case No. 18-10301
Chapter 11 Petition filed January 9, 2018
See http://bankrupt.com/misc/flsb18-10301.pdf
represented by: Gregory S. Grossman, Esq.
SEQUOR LAW PA
E-mail: ggrossman@sequorlaw.com
In re Jose M. Pittol
Bankr. D. Mass. Case No. 18-40038
Chapter 11 Petition filed January 9, 2018
represented by: Robert W. Kovacs, Jr, Esq.
KOVACS LAW, P.C.
E-mail: bknotices@rkovacslaw.com
In re K AND C LV Investments, Inc.
Bankr. D. Nev. Case No. 18-10080
Chapter 11 Petition filed January 9, 2018
See http://bankrupt.com/misc/nvb18-10080.pdf
represented by: Michael J. Harker, Esq.
LAW OFFICES OF MICHAEL J. HARKER
E-mail: notices@harkerlawfirm.com
In re Mark Kipnis
Bankr. E.D.N.Y. Case No. 18-40103
Chapter 11 Petition filed January 9, 2018
represented by: Alla Kachan, Esq.
E-mail: alla@kachanlaw.com
In re Franklin Torres Torres and Ivette Enid Torres Ramos
Bankr. D.P.R. Case No. 18-00072
Chapter 11 Petition filed January 9, 2018
represented by: Jesus Enrique Batista Sanchez, Esq.
THE BATISTA LAW GROUP, PSC
E-mail: jeb@batistasanchez.com
In re Ricky A. Fohr
Bankr. W.D. Wis. Case No. 18-10056
Chapter 11 Petition filed January 9, 2018
represented by: James T. Runyon, Esq.
E-mail: jtrunyon@runyonlawoffices.com
In re Jose De Jesus Hernandez
Bankr. C.D. Cal. Case No. 18-10155
Chapter 11 Petition filed January 9, 2018
represented by: Eric Bensamochan, Esq.
E-mail: eric@eblawfirm.us
In re People Who Care Youth Center, Inc.
Bankr. C.D. Cal. Case No. 18-10290
Chapter 11 Petition filed January 10, 2018
See http://bankrupt.com/misc/cacb18-10290.pdf
Filed Pro Se
In re Legal ESP Corp
Bankr. S.D. Fla. Case No. 18-10320
Chapter 11 Petition filed January 10, 2018
See http://bankrupt.com/misc/flsb18-10320.pdf
Filed Pro Se
In re Vivid Service Group, LLC
Bankr. N.D. Ga. Case No. 18-50460
Chapter 11 Petition filed January 10, 2018
See http://bankrupt.com/misc/ganb18-50460.pdf
represented by: Paul Reece Marr, Esq.
PAUL REECE MARR, P.C.
E-mail: paul@paulmarr.com
In re Margaret M. Morrissey
Bankr. D. Mass. Case No. 18-10080
Chapter 11 Petition filed January 10, 2018
represented by: Gary W. Cruickshank, Esq.
LAW OFFICE OF GARY W. CRUICKSHANK
E-mail: gwc@cruickshank-law.com
In re Thurman Vassey Trucking, Inc.
Bankr. W.D.N.C. Case No. 18-40013
Chapter 11 Petition filed January 10, 2018
See http://bankrupt.com/misc/ncwb18-40013.pdf
represented by: William S. Gardner, Esq.
GARDNER LAW OFFICES, PLLC
E-mail: Billgardner@gardnerlawoffices.com
In re Kwang S. Lee
Bankr. S.D.N.Y. Case No. 18-10073
Chapter 11 Petition filed January 10, 2018
represented by: Dong Sung Kim, Esq.
KIM, CHOI & KIM, P.C.
E-mail: kimchoikim@gmail.com
In re Mohammed Suruj Miah and Linda Lou Daniels
Bankr. S.D. Tex. Case No. 18-30103
Chapter 11 Petition filed January 10, 2018
represented by: J. Thomas Black, Esq.
E-mail: tom@jthomasblack.com
In re Michael Paul Enmon
Bankr. S.D. Tex. Case No. 18-60001
Chapter 11 Petition filed January 10, 2018
represented by: Miriam Goott, Esq.
WALKER & PATTERSON, PC
E-mail: mgoott@walkerandpatterson.com
In re Lee-Dylan M. Locke
Bankr. W.D. Tex. Case No. 18-30038
Chapter 11 Petition filed January 10, 2018
represented by: E. P. Bud Kirk, Esq.
E-mail: budkirk@aol.com
In re Mildred Deli Grocery, Inc.
Bankr. S.D.N.Y. Case No. 18-10077
Chapter 11 Petition filed January 10, 2018
See http://bankrupt.com/misc/nysb18-10077.pdf
represented by: Julio E. Portilla, Esq.
LAW OFFICE OF JULIO E. PORTILLA, P.C.
E-mail: jp@julioportillalaw.com
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman,
Editors.
Copyright 2018. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000 or Nina Novak at 202-362-8552.
*** End of Transmission ***